Thinkstock

A 'Measly' Pay Raise Is the Least of Feds' Worries

Contributing more for pensions and the threat of governmentwide automatic spending cuts are bigger issues.

Most of you have heard the news by now that President Obama will extend the current federal pay freeze until Congress passes a budget for the next fiscal year. If you’re not aware of this latest twist in the federal pay drama, then I envy you, because it means you are probably lying on a beach somewhere enjoying the last remnants of summer.

To briefly recap, the president announced Tuesday evening that he is using his authority under the law to give federal employees a 0.5 percent pay boost in 2013. But the across-the-board salary increase is contingent upon Congress accomplishing what it is apparently incapable of these days: agreeing on a long-term spending plan to fund the government. Lawmakers are on track to pass a six-month continuing resolution when they return from recess, which means that feds will have to wait until at least April for a pay increase. Of course, government workers might have to wait longer than that if lawmakers push through another stopgap spending measure after the first one expires.

So, what does this mean to federal employees? It depends on your perspective. Federal employee unions range from apoplectic to disappointed over Obama’s decision, but based on comments from Government Executive readers, many feds are just, well, resigned almost to the point of indifference. Some see the promise of a 0.5 percent pay raise -- whenever it might come -- as an empty-handed political gesture that isn’t very useful.

“Who cares...does a measly 0.5 percent matter, anyway?” asks one reader. “What does that come to for an average fed, about 50 bucks a month after taxes? Is that really going to break your bank?” Actually, it’s probably less than $50 per month extra for the average fed, but we’re splitting hairs. From another reader: “Don't really care myself, 0.5 percent does not do a great deal for me. Just keep it.” Maybe Obama should just keep it. It doesn’t sound like it’s garnering him much political capital among federal workers, anyway.

Looming Threats

The question of a 0.5 percent pay increase versus an extended freeze is kind of small potatoes compared to the other potential threats feds currently face. Obama and many Republicans, including presidential rival Mitt Romney, favor increasing the amount of money federal workers contribute to their pensions. Obama recommends feds contribute 1.2 percent extra to their retirement benefits, while many lawmakers want government workers to shell out more. Under a deal Congress approved in February, federal employees hired after Dec. 31, 2012, have to pay 2.3 percent more toward their government pensions.

And then there is the matter of the automatic spending cuts, known as sequestration, scheduled to begin in January 2013. If Congress can’t figure out a way to avoid those governmentwide, across-the-board reductions, federal jobs, not to mention contractor jobs, are very much in jeopardy. The good news for federal employees, such that there is some: their health care and retirement benefits are protected from cuts if the sequester happens, and their pay cannot be reduced to save money. But if agencies have to furlough or lay off employees, all bets are off. Feds don’t necessarily get paid if they are furloughed (Congress decides whether to grant back pay), and if you lose your job, obviously, you lose your pay and benefits.

TRICARE Change

TRICARE beneficiaries who enrolled in the US Family Health Plan after Aug. 20, 2012, cannot stay in that program after they turn 65.

Those beneficiaries 65 and older who enroll after that date will lose their eligibility for USFHP and move into TRICARE for Life, according to the Defense Department. USFHP is a managed care TRICARE Prime option. Those enrolled in the program before Aug. 20 can stay in the program, regardless of age, until they no longer qualify for TRICARE coverage.

In addition, USFHP enrollment remains open for the following groups: eligible active-duty family members; qualifying surviving children and spouses who have not yet remarried; unmarried children up to age 21, or up to age 23 for full-time students; retirees and their family members under the age of 65; and former adult dependent children whose sponsor’s status qualifies them for TRICARE Young Adult coverage.

Military Duty Protection

Employees of the Transportation Security Administration now officially are protected under a law that prohibits employers from discriminating on the basis of military service. President Obama on Aug. 16 signed into law a bill that makes TSA subject to the requirements of the 1994 Uniformed Services Employment and Reemployment Rights Act. The law protects individuals’ rights to be reemployed when they return from uniformed military service, including those in the reserves and the National Guard called to active duty. According to TSA, the agency’s existing policies regarding employees who leave for uniformed service already are consistent with USERRA.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.