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Key developments in the world of federal employee benefits: health, pay, and much more.

An 8.7 Percent Pay Cut for Six-Figure Earners, Subjective Measures of Financial Well-Being and More

More than 300,000 federal employees earned six-figure salaries in 2014, according to a recently released partial database of pay information, and at least one lawmaker seems to believe those employees are doing a bit too well.

Rep. Tom Rice, R-S.C., has introduced a bill (H.R. 1137) that would cut the basic pay of civil servants and members of Congress making more than $100,000 a year by 8.7 percent. The reduction would also apply to the president. It would take effect almost immediately after the bill was signed into law for federal employees, and at the beginning of a new term for lawmakers and the president.

The reduction wouldn't necessarily be a one-time deal. After the initial cut, pay for six-figure salaried employees would be adjusted regularly to reflect percentage changes in real median household income in the United States, as calculated by the Census Bureau. High-earners would have to hope that the median household income – after it’s adjusted for inflation -- starts going up. 

Rice’s proposed cuts would be severe enough that the National Federation of Federal Employees called the legislation “one of the most aggressively anti-federal employee bills introduced in recent history ...

Steps to Reform Health Benefits, Cut Retirement Pay, Count Calories and More

It usually gives us pause when someone claims to be able to cut costs and improve service, but that’s exactly what two lawmakers—one Republican and one Democrat—say about reforming the Federal Employees Health Benefits Program. And they have plenty of company in making those claims.

In a joint op-ed in The Hill newspaper, Reps. Reid Ribble, R-Wis., and Kurt Schrader, D-Ore., note that the program that serves 8 million federal workers, retirees and their families has remained largely unchanged since 1959—“before the invention of the hand-held calculator, personal computer and the Internet.”  Modernization, they argue, could save taxpayers hundreds of millions of dollars and deliver more comprehensive health plans.

The law limits the types of health plans that the FEHBP can offer, which prevents workers and retirees from benefiting from innovations and health plan options that other large employers—including state and local governments—offer, they wrote:

The Congressional Budget Office recently found that on average, the cost of benefits, including health insurance, was 48 percent higher for federal civilian workers than for their private sector counterparts. Furthermore, a Health Affairs article found that in areas of the country where there was significant competition among health ...

Shutdown Pay and Leave, Telework Savings, Rx Tracking and More

While Republicans and Democrats duke it out over Homeland Security funding, lawmakers in both chambers have introduced bills that would guarantee back pay to federal workers affected by any lapse in appropriations for the department.

The Federal Employee Retroactive Pay Fairness Act of 2015, introduced in the Senate by Maryland Democrat Ben Cardin, guarantees full pay for any furloughed DHS employees as a result of a shutdown. The bill also would allow non-furloughed employees to take leave in the event lawmakers fail to reach a funding deal. During the last government shutdown in 2013, the American Federation of Government Employees claimed that managers threatened to discipline non-furloughed feds who declined to work, in some cases to avoid child care costs or other expenses while they weren’t drawing paychecks.   

Fourteen senators have signed the bill, all Democrats plus Vermont Independent Bernie Sanders.

Whether you’re bracing for a potential furlough or not, it never hurts to save for the proverbial rainy day. As it happens, this is Military Saves Week, and Thrift Savings Plan officials are available to help you celebrate with presentations for new and mid-career service members, as well as for those close to retirement.  

TSP’s theme ...

Transit Benefits, Cutting Contractor Pay, Collective Bargaining and More

Federal worker compensation is facing a pair of Kings.

No, this is not referring to a poker game. After all, the Office of Government Ethics prohibits feds from gambling while on the job.

Instead, two lawmakers -- both named King -- have introduced measures that affect federal pay and benefits. Rep. Pete King, R-N.Y., has unveiled the 2015 Commuter Benefit Parity Act, which would give federal employees -- and all commuters -- the same benefit cap as those who drive to work.

The 2009 stimulus package first raised the commuter transit benefit significantly, but renewing it has proven to be a nearly annual battle. The benefit actually dropped nearly in half in 2014 to a maximum of $130 per month, but Congress voted to retroactively bump the subsidy up to $250 per month in December.

Pete King’s measure would set the monthly maximum at $235.

Rep. Steve King, R-Iowa, has his own ideas for reforming federal compensation. The more conservative King has introduced a measure to repeal the Davis-Bacon Act, which sets the minimum wage for contractors on federal public works projects. The law, originally enacted in 1931, requires federal agencies to pay laborers and mechanics the “prevailing wage” -- or the pay ...

Aggressive Lobbying on Pay Issues, Veterans Suicide Prevention and More

Two major federal employee unions have gathered for their annual legislative conferences, and while their styles may be a bit different, one thing is clear: they are both hitting Capitol Hill aggressively on behalf of their members’ job security, resources, pay and benefits. One area of focus for the National Treasury Employees Union and the American Federation of Government Employees is repealing the across-the-board cuts from sequestration scheduled to return in October.

“If I meet one more politician who tells me we need to tighten our belts, I’m going to take my belt off and I’m going to whoop his ass,” said AFGE National President J. David Cox, in a speech to union members Monday.  

NTEU President Colleen Kelley was much less combative, but her message was similar: Sequestration has “shackled agencies in myriad other ways” in addition to hiring freezes, furloughs and decreased training, she said during that union’s conference last week.  “If Congress does not adequately fund our agencies, we will fail in our efforts to deliver on our missions, period.”

Other items on the unions’ agendas include: keeping the Homeland Security Department open past Feb. 27, when funding is scheduled to run out; obtaining ...