Counting beans

When you multiply your gross biweekly pay by 26-the number of annual pay periods-is the product different from what the General Schedule pay scale says your annual salary should be?

Let's say you're a GS-15, step 1 salary-level federal employee. Your base annual salary based on the Office of Personnel Management's salary tables was $82,580 last year. But when 2002 ended, your paychecks show you earned $82,303.02. That's about $277 short. Where's the rest of your money?

The difference in dollars has to do with the formula the federal government uses to calculate pay, according to officials at the Agriculture Department's National Finance Center in New Orleans. The finance center provides centralized and automated payroll, personnel, property management, budget and accounting services for dozens of agencies.

A pay year in the federal government is 2,087 work hours for GS employees, and there are 26 pay periods in one year. However, do the math and you'll find that 26 pay periods multiplied by 80 work hours per pay period equals 2,080 work hours. The government tacks on an additional seven hours to the formula, so employees appear to get shortchanged seven hours' pay each year.

The government tacks on the extra seven hours because some years have 27 pay periods. Multiply 26 pay periods by 14 workdays and you get 364 days. That's one day short of a full calendar year. Two days short if it's a leap year. Over the years, those missing days add up to a full pay period, hence the extra payday some years. In 1986, it came to the government's attention that employees were getting a bonus in those years with the extra pay period, while drawing their regular salary in the years with just 26 pay periods. So Congress changed the formula to 2,087 hours and now employees are "underpaid" in years with 26 pay periods, but recoup the extra money in years with 27 pay periods. This year most employees have 26 pay periods.

Pay Parity

Several lawmakers are working to keep civilian pay raises in step with pay raises given to military personnel.

House Minority Whip Steny Hoyer, D-Md., and House Government Reform Chairman Tom Davis, R-Va., introduced a "sense of the Congress" resolution Tuesday asking for military-civilian pay parity.

"Every year we fight for fair pay adjustments for civilian federal employees and for parity with military pay adjustments," Hoyer said. "This year it is even more critical that we win this fight because at the same time that we are calling on our federal employees to work harder and better in the war against terrorism, the Bush administration is floating ideas that could possibly shortchange them."

Sen. Daniel Akaka, D-Hawaii, included an amendment in the fiscal 2003 omnibus appropriations bill that expresses the sense of Congress that federal civilian and wage grade employees receive the same annual raises military personnel receive each year.

"My amendment recognizes that wage grade employees, like their General Schedule counterparts, are key to the security and defense of our nation," Sen. Akaka said. "They perform a range of duties critical to the success of military missions, the safety of our soldiers, and the well-being of our veterans. It is a matter of simple equity that we acknowledge their hard work and provide them with an adjustment in compensation equivalent to that of our military and GS workforce."

On Jan. 9, Sen. Paul Sarbanes, D-Md., and 17 co-sponsors introduced S.Con.Res 1, a "sense of the Congress" resolution asking for military-civilian pay parity.

Long-term care

Federal employees have one more day to sign up for long-term care insurance coverage. Long-term insurance protects assets from being depleted if you require nursing home care, home health care or other extended health care services.

"As long as Long Term Care Partners receives your open season application by Jan. 31, 2003, we will process it with all the advantages of Open Season," said Paul Forte, chief executive officer of Long Term Care Partners. "Please note that a postmarked date of Jan. 31 is not sufficient-we must receive the applications by Jan. 31, 2003."

Applications can be mailed overnight or faxed. For more information, visit http://www.ltcfeds.com.