With members of Congress celebrating the nation's 225th birthday in their hometowns, and many in the executive branch on vacation, this week is a good time to take stock of federal pay and benefits for the year so far. The Bush administration continues to support a 3.6 percent average pay raise for civilian federal workers, despite momentum on Capitol Hill for a 4.6 percent average raise to match the base raise for military personnel next year. In the congressional budget resolution, lawmakers argued that civilian and military personnel pay raises should be linked each year; there has been parity for 17 of the last 20 years. The Bush administration contends that military and civilian raises should not be automatically linked, pointing to several benefits enhancements to civilian compensation in the past year. Last year, for example, health insurance premiums became part of pre-tax income, increasing the take-home pay of the average federal employee by hundreds of dollars. At the time, however, the premium change was seen as a way of offsetting the rising cost of federal employees' health insurance--Federal Employees Health Benefits Program premiums increased an average of 8.5 percent in 1998, 9.5 percent in 1999, 9.3 percent in 2000 and 10.5 percent in 2001. Premiums are expected to climb at a similar rate for 2002. The Office of Personnel Management, which oversees the insurance program, will know what the rates will be once negotiations with insurance companies conclude next month. The biggest changes affecting federal employees' wallets in the long-term have been in the Thrift Savings Plan this summer. Two new funds debuted in May, providing opportunities to invest tax-deferred contributions in a small- and mid-sized company stock fund and in an international stock fund. The limits on the percentage of pay employees can contribute to the TSP each pay period rose this month. Employees in the Federal Employees Retirement System can contribute up to 11 percent of salary per pay period, up from a 10 percent limit. Civil Service Employees Retirement System employees can contribute up to 6 percent of pay, up from a 5 percent limit. Those percentage limits are capped by the Internal Revenue Service limit of $10,500 this year. But in June, President Bush signed a tax cut bill that will allow federal employees to invest even more money in their TSP accounts. The IRS limit will rise to $11,000 next year and then an additional $1,000 per year through 2006, when the limit will reach $15,000. For people aged 50 or over, the limit may jump to $20,000 by 2006. The TSP will also open up to more people this fall, when military personnel will be able to open accounts for the first time. Meanwhile, on Capitol Hill, lawmakers have introduced about three dozen bills affecting federal pay and benefits. Here's a round-up of the bills:
- S. 1138 would make more service creditable toward retirement for certain federal employees who served abroad.
- S. 1129 would raise the cap on pay for members of the Senior Executive Service.
- H.R. 2355 would make more service creditable toward retirement for people who worked in units that did not receive appropriated funds.
- H.R. 2379 would require federal employees' health insurance companies to cover glaucoma screenings.
- S. 1080 would allow registered nurses who work for the federal government to count unused sick leave toward their retirement calculations. The extra credit, which would be given to nurses under the Federal Employees Retirement System, could boost nurses' pensions.
- S. 1080 would allow registered nurses who work for the federal government to count unused sick leave toward their retirement calculations. The extra credit, which would be given to nurses under the Federal Employees Retirement System, could boost nurses' pensions.
- S. 1022 and H.R. 2125 would allow federal retirees to pay their health insurance premiums from pre-tax income.
- H.R. 2086 and H.R. 2087 would encourage Federal Employees Health Benefits Program carriers to cover services provided by acupuncturists, massage therapists, naturopathic physicians and chiropractors.
- H.R. 1824 would push the cap on executives' base pay from Level IV to Level III of the pay schedule for members of Congress and the Cabinet.
- S. 768 would improve retirement benefits for some Civil Service Retirement System employees who work part-time during at least part of their federal careers.
- H.R. 1596 would change the tax code for members of the uniformed services and the Foreign Service who sell their homes.
- H.R. 1586 would make some temporary work at the Federal Deposit Insurance Corporation count for retirement purposes.
- H.R. 1307 would make federal employees have to pay an average of 20 percent of their health insurance premiums. The current average is 28 percent. Uncle Sam covers the rest of the premiums.
- H.R. 1262 would guarantee federal wage grade workers an annual pay raise and lift the cap on blue-collar pay increases.
- H.R. 1289 would prevent the Veterans Affairs Department from forcing nurses to work mandatory overtime.
- H.R. 1090 would improve retirement benefits for assistant U.S. attorneys.
- H.R. 1049 would allow federal employees to obtain health insurance coverage for dependent parents through the Federal Employees Health Benefits Program.
- H.R. 1073 would improve retirement benefits for federal retirees who make less than $2,000 a year and are affected by Social Security's windfall elimination provision.
- S. 529 would to improve wages for certain Department of Defense prevailing rate employees in Georgia.
- H.R. 848 would get rid of the Social Security windfall elimination provision.
- H.R. 664 would eliminate the government pension offset for federal retirees whose combined government and Social Security retirement checks total less than $1,200.
- H.R. 579 would allow federal employees to obtain health benefits coverage under FEHBP for their dependent parents.
- H.R. 568 would provide for coverage of fertility and impotence treatments under the Federal Employees Health Benefits Program.
- S. 263 would ensure that FEHBP plans provide coverage of bone mass measurements.
- H.R. 570 would increase pay for federal judges by 9.6 percent next year. It would also provide for annual cost-of-living increases for the judiciary.
- H.R. 572 would move the Civil Service Retirement and Disability Fund off-budget
- H.R. 555 would improve child-care services for federal employees.
- S. 271 would change the mandatory retirement age for federal firefighters from 55 to 57. A companion bill, H.R. 93, was passed by the House.
- H.R. 438 would eliminate automatic pay adjustments for members of Congress. The automatic increases have helped ensure that federal senior executives get raises each year, since Senior Executive Service pay is tied to congressional pay. A separate bill introduced last month, H.R. 241, has the same purpose.
- H.R. 446 would revamp disability annuities for law enforcement officers, firefighters, and members of the Capitol Police.
- H.R. 497 would allow agencies to use up to 50 percent of unspent administrative funds at the end of a fiscal year to pay bonuses to agency personnel.
- H.R. 512 would end the prohibition against overtime pay for National Guard technicians.
- H.R. 513 would provide more equitable civil service retirement and retention provisions for National Guard technicians.
- H.R. 136 would provide better retirement benefits for federal workers who ease into retirement by switching to part-time schedules.
- H.R. 135 would require federal agencies to offer transit subsidies to all employees, wherever they live.