Under current law, the projected across-the-board GS pay increase will be 3.1 percent. (This percentage amount is derived under a formula linked to the Employment Cost Index published by the Bureau of Labor Statistics.)
Bush did not touch this cost of living adjustment. (Thank God for small favors.)
The locality pay adjustment amounts are not yet known. The President’s Pay Agent issued a report in 2001 that shows the locality pay rates that would be payable in January 2003 under the Federal Employees Pay Comparability Act of 1990 (FEPCA). By law, the President has the authority to issue an alternative plan for locality payments. The deadline for submitting an alternative plan to Congress was November 30, 2002.
Bush’s plan is no plan, meaning there will be no locality pay increases. This is the “pay raise” that Bush cut.
There are 32 locality pay areas (including the “Rest of U.S.” area). Locality pay means specifically identified areas where the cost of living seriously affects federal employees to where one cannot afford to work for the federal government in those areas at a standard GS rate without suffering an undue hardship. Cpngrees finally recognized this and created locality pay areas. Generally speaking, this means folks in the lower GS pay scales are paid a higher base rate than identical GS levels in other areas.
For example, the GS-5, step 1 federal employee annual base rate is $22,737. An identical GS-5/1 federal employee in the New York City metro area is paid $26,200. A new locality pay adjustment raising the base rate for the NYC metro area and the 30 other specialty locality areas was killed by Bush.
According to the “Annual Report on Locality-Based Comparability Payments for the General Schedule,” the average federal employee pay disparity is 28.53% (2001). It is very difficult to find quality federal employees when they are paid 28.53% less than what they should be paid, compared to private employment in identical job skill areas.
In addition, some jobs within the federal government are even harder to fill, notably IT positions. As such, Congress also created specialty pay rates for selected job series, in this case the 2210 job series (Certain Information Technology Employees).
Using the above example, the GS-5, step 1 federal employee annual base rate is $22,737. However, a GS-5/1 IT federal employee (job series 2210) is paid $32,969 pa in the New York metro area. Bush apparently killed this increase, too.
Source: http://www.opm.gov
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I find it ironic that Bush’s decision denying the locality pay increases will hit hardest with those federal employees who will bear the brunt – do most of the work – concerning this country’s anti-terrorism efforts. In addition, Bush is also pushing an e-government initiative, government-wide. You can expect this effort will be slowed for the same reason.
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