Charles Dharapak/AP

Obama’s Fed-Friendly Budget Blueprint

White House eliminates previously proposed cuts to feds' compensation and plans to announce 1 percent pay raise recommendation next week.

President Obama removed many of the cuts previously aimed at federal employees in his fiscal 2015 budget, instead promising to “unlock the full potential” of the government workforce.

Obama struck a conciliatory tone in the blueprint when referring to federal workers that has been present in the rhetoric of past budgets, but mostly not backed up with substance. The White House on Tuesday announced a new initiative, and corresponding funding, to boost federal employee training and retention.

The budget “invests in the government’s most important resource, its workers, ensuring that we can attract and retain the best talent in the federal workforce and foster a culture of excellence.”

The proposal would fund the Office of Personnel Management to “build a stronger onboarding program” for new members of the Senior Executive Service, as well as leadership and engagement training for new managers to address the “changing needs of a 21st century workforce.” Obama promised his administration will work with labor groups to recruit and retain individuals with “high-demand talents and skills,” and will begin “demonstration projects” in 2015 to identify best practices in hiring, increasing diversity and reducing skill gaps.

In his fiscal 2014 budget, Obama proposed federal employees contribute an additional 1.2 percent of their pay toward their retirement pensions. He also suggested switching to a new formula to calculate inflation, which would result in lower cost-of-living adjustments for federal retirees and Social Security beneficiaries. Both of those measures were eliminated from the current budget, in part due to the recent budget agreement putting in place a pension contribution hike for new employees.

Obama has said the so-called “chained-Consumer Price Index” is still on the table, but the gridlock between congressional Republicans and the White House on deficit reduction has prompted him to eliminate the proposal from his fiscal 2015 budget.

Obama will not formally introduce his 1 percent pay raise proposal for civilian employees until next week, according to White House officials.

The budget was not all good news for federal employees; several agencies would face “right-sizing” under the president’s proposals. The intelligence community would face workforce reductions; the Environmental Protection Agency would “modernize” its workforce, resulting in job “consolidations”; the State Department would look to reduce the number of feds overseas at all agencies; the Transportation Security Administration would save $100 million in 2015 through “staffing efficiencies”; and, as previously announced, the Defense Department will reduce its headquarters funding by 20 percent.

Overall, the Obama budget proposed 136 cuts, consolidations and savings opportunities, which would save $17 billion. For a full list of the budget’s winners and losers, click here.

Obama recommended a series of changes to the Federal Employees Compensation Act that would generate $340 million in savings over 10 years. The proposal -- which is nearly identical to language included in a Senate bill to overhaul the U.S. Postal Service -- would reduce benefits to retirement-age employees receiving workers’ compensation, establish an up-front waiting period before those injured on the job begin receiving payments, and attempt to reduce improper payments. Obama also included the cuts in his fiscal 2014 budget.

The president also retained provisions to reform the Federal Employees Health Benefits Program. The administration wants to give OPM the power to contract with “modern types of health plans rather than being limited to the current four statutorily-defined plans reflective of the 1950s insurance market.” It would also give OPM the authority to negotiate pharmacy benefits for all FEHBP program participants. Currently, health plans participating in FEHBP contract with pharmacy benefits managers, who negotiate with drug manufacturers and pharmacies on behalf of their enrollees. OPM has said that working directly with a single pharmacy benefits manager would reduce costs to beneficiaries. Overall, the administration estimated the changes would save $2 billion over 10 years.

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.