Federal workers falling further behind in pay, council finds

Federal Eye

Federal workers falling further behind in pay, council finds

A federal advisory group reported Tuesday that federal workers have fallen slightly further behind the private sector in pay, a trend that union leaders said they hope will be stopped by getting the government back in the habit of paying annual raises.

The Federal Salary Council, a group of union officials and pay policy experts, said that the average “pay gap” in favor of the private sector now stands at 35.4 percent, up from 34.6 percent last year and 26.3 percent in 2011.

(Kim Hong-Ji/Reuters)

(Kim Hong-Ji/Reuters)

The pay gap figure, based on data from the Bureau of Labor Statistics, involves employees paid under the largest of the government’s many pay systems, the General Schedule for white-collar employees below the executive level. Pay rates under the GS system are locality-based, varying among 31 metropolitan areas, the entirety of both Alaska and Hawaii, and a catchall “rest of the U.S.” locality for everywhere else apart from foreign countries. Continue reading “Federal workers falling further behind in pay, council finds”

Budget Conference Deal Summary/Talking Points

Budget Conference Deal Summary/Talking Points

Summary of Elements Impacting Feds:

1. Post-12/31/13 hires will pay an additional 1.3% toward their pensions, for total of 4.4%

2. FEHB will add a ‘self plus one’ option, which inevitably increases family plan premiums

3. Contractor salary reimbursement cap dropped to $487,000

4. The total deal is $85 billion. About $45 billion of that replaces sequestration cuts in 2014. About $20 billion replaces sequestration cuts in 2015. (Washington Post) Continue reading “Budget Conference Deal Summary/Talking Points”

Mixed Reviews for Proposed Pension Contribution Hikes

Mixed Reviews for Proposed Pension Contribution Hikes

J. David Cox, AFGE National President
J. David Cox, AFGE National President AFGE

The budget deal has been struck.

To review, the compromise package to roll back sequestration cuts required by the 2011 Budget Control Act for two years targets federal employees’ pensions as expected. While current workers were spared, civil servants hired after 2013 would pay 4.4 percent of their annual salaries toward their defined retirement benefit. This marks a 1.3 percent increase from the current contribution requirement for new hires, though any employee hired in or before 2012 pays only 0.8 percent of their salary toward their pension.

Military retirees’ pensions would also take a hit, as the deal requires a less generous annual cost of living adjustment. Overall, the plan takes $12 billion in savings from federal workers. Continue reading “Mixed Reviews for Proposed Pension Contribution Hikes”

Largest Federal Employee Union Leader Rejects Budget Deal Targeting Federal Pensions

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Largest Federal Employee Union Leader Rejects Budget Deal Targeting Federal Pensions

 
AFGE logo. (PRNewsFoto/American Federation of Government Employees)

AFGE rejects notion that there should be trade-off between federal programs and federal employees

WASHINGTON, Dec. 10, 2013 /PRNewswire-USNewswire/ — American Federation of Government Employees National President J. David Cox Sr. issued the following statement in response to the budget deal announced today by the Budget Conference Committee:

“Despite the extraordinarily hard work of several Congressional leaders, AFGE cannot support any budget deal that asks for more from federal employees. AFGE represents more than just the 670,000 federal and D.C government employees on the rolls today, but every other federal worker who will one day take the oath and be forced to live with this needless pension cut.

“AFGE rejects the notion that there should be a trade-off between funding the programs to which federal employees have devoted their lives, and their own livelihoods. Though the $6 billion in increased retirement contributions for new employees is less severe than the administration’s $20 billion proposal, it is still unacceptable.

“Newly hired federal employees already pay 3.1% of their salaries toward their defined benefit pension and 6.2% to Social Security. Forcing employees hired after 2013 to pay an additional 1.3% — for a total of 4.4% — toward their pension will make it all but impossible for them to fund their Thrift Savings Plan accounts.  The result will be a serious shortfall in their retirement income security, and a substantial lowering of their standard of living. Continue reading “Largest Federal Employee Union Leader Rejects Budget Deal Targeting Federal Pensions”

Take Action to Stop the Cuts!

We never would have ended the government lockout without thousands of federal workers taking to the streets and demanding the return to work. We need you to stand up once again and tell our politicians that enough is enough.

Spread the Word: Media and Online

AFGE members saturated the airwaves during the lockout, doing more than 450 interviews in a matter of weeks. We need to get our stories to the press and win the support of our communities. Here’s how:

Learn More About Threats To Your Wallet

There is more than just federal pay, retirement, and jobs on the line in these budget talks. Cuts to vital services like social security, military readiness, and border security are all on the table. Learn more about the latest proposals here: