When it comes to pay, fairness is an elusive concept. What is too much, too little, just right? The answers depend on who’s talking, and when they’re talking.
This is why the debate about whether federal employees are over- or underpaid rages on. It’s complicated, relative, and, of course, political.
Federal compensation once again dominated government news headlines this week. Furloughs for 650,000 Defense Department civilians across the country began on Monday, guaranteeing those employees smaller paychecks this summer. Acting Internal Revenue Service Commissioner Danny Werfel said he wants to get rid of performance bonuses in 2013 to reduce the number of furlough days employees are forced to take. And the Senior Executives Association is trying to reignite a discussion of pay compression, a byproduct of the government’s imperfect pay systems. Continue reading “What Exactly is Fair in Federal Compensation?”
The Obama administration on Thursday called for Congress to slow the growth of executive pay for government contractors, arguing that current compensation levels have grown excessive.
The White House budget office unveiled a legislative proposal that would prohibit the government from reimbursing private firms for salaries that exceed the president’s federal earnings, which are $400,000 per year, except when specialized skills are needed.
The plan would only affect payments that are made retroactively through so-called cost-reimbursement contracts. Under such agreements, which are often used when final costs are hard to predict, the government promises to pay whatever costs a company incurs as it completes a project — like a blank check with certain limits. Continue reading “Obama administration urges Congress to cap contractor pay at president’s salary”