Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
- Federal Executive Forum
- Federal Tech Talk
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- The New Generation of Database
- Satellite Communications: Acquiring SATCOM in Tight Times
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Value of Health IT
Shows & Panels
Pay & Pension Checks: Going Down?
Friday - 7/30/2010, 4:00am EDT
Here's the deal:
- The President has proposed a 1.4 percent pay raise in January, 2011 for white collar (nonpostal) federal workers. There is an outside chance Congress may increase it, slightly. But don't base your summer 2011 vacation plans on that.
That 1.4 percent amount, if it sticks, will probably be slightly larger in some places like Washington, San Francisco, New York and Los Angeles depending on how the locality pay adjustment works out.
This year, 2010, the pay raise was 1.5 percent, but after locality pay was factored in the largest concentration of federal workers, in the Washington-Baltimore area, got a total increase of 2.42 percent. The raise in Houston was 1.84 percent. In metro New York, San Francisco-Oakland-San Jose it was 2.10 percent. In Chicago the 2010 total raise was 2.01 percent. In Austin, St. Lake, Louisville, Las Vegas and other cities the raise was 1.77 percent. To see how your raise compares to increases in other cities, click here.
The bottom line is despite four congressional attempts to freeze it, the 2011 federal pay raise is still one. And while small, it will be a raise.
For retirees, however, it's a very different story:
- Thanks to minimal inflation, and months when living costs have actually declined producing deflation, federal retirees won't be getting any cost of living adjustment in 2011. They also didn't get a COLA this year. The last COLA they got, in 2009, was 5.8 percent.
But while the rate of inflation is steady or down, as measured by the Bureau of Labor Statistics Consumer Price Index, medical inflation isn't. The cost of medical care, doctors, hospitals and prescription drugs, always outpaces the regular rate of inflation.
Already this year some health plans covering state and local government workers have announced double-digit premium increases for 2011. The same thing is happening with private sector plans, even in situations where employees had to take pay cuts in 2009 or 2010.
While nobody, including the government, yet knows how much FEHBP premiums are going up next year, most are going up. Maybe, probably, a lot.
This year premiums in the federal health plan went up an "average" of 7.4 percent. But averages are just that, averages.
The increase coming in your plan could be more. This in some plans, including those most popular with workers (and especially retirees) the increases were bigger.
This year the "average" increase in premiums for people with self-only coverage was $5.98 per pay period, or $155 total for the year. For family coverage the "average" increase was $12.87 per pay period. But...
Most people - workers, retirees and survivors - in the FEHBP are in one of the Blue Cross-Blue Shield plans. Premiums for its popular standard option went up 15 percent for self-only coverage and 12 percent for family coverage. The popular Mail Handlers Plan, a favorite of many people because of its low premiums, increased premiums 42 percent for 2010.
What To Do?
To avoid taking what will amount to a pay or pension cut next year, shop very, very carefully during the open enrollment period which starts Nov. 8 and runs through Dec. 13. That's when you will pick your 2011 health plan.
Feds and retirees have dozens of plans - national fee-for-service and local HMOs - to choose from. And the also have the option of choosing a plan with a Health Savings Plan option. Premiums will be announced late August. You'll have plenty of time to shop and, if necessary, make changes.
To reach me: firstname.lastname@example.org
Nearly Useless Factoid
by Suzanne Kubota
William S. Nye, Science Guy, holds patent number 7,254,904. MentalFloss reports it's his "improved ballet shoe."
Not THAT improved! (Les Ballets Trockadero de Monte Carlo)
ADDITIONAL PAY AND BENEFITS NEWS ON FEDERAL NEWS RADIO
On the outside: options for fired feds
Ousted Agriculture Department employee Shirley Sherrod now says she will sue a conservative blogger who posted an edited video of her making racially tinged remarks last week. But what should other federal employees and managers do if they find themselves in similar situations? And what legal recourses do they have? Bill Bransford is a partner at the law firm, Shaw, Bransford & Roth and tells us more. Read more here.
DFAS feds remain suspended without pay
Federal News Radio has been telling you about employees at the Defense Finance and Accounting Service being fired after security reviews. One of the reasons given for the firings was poor credit reports of employees. The Defense Department has said that wasn't the only reason for the firings. Read more here.
ALSO ON FEDERAL NEWS RADIO
Dorobek Must Reads - July 29
Worried you'll have no idea what people are talking about around the watercooler this morning? Each day, the DorobekInsider team collects a group of stories that we're reading to stay in the know. On Thursday, we learn that the GAO says there needs to be some rules around agency use of Web 2.0, and we get details about an arrest in a prolific Internet Botnet. Read more here.