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
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- The Future of Government Data Centers
- The Future of IT: How CIOs Can Enable the Service-Oriented Enterprise
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Mitigating Insider Threats in Virtual & Cloud Environments
- Modern Mission Critical Series
- 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
- Air Traffic Management Transformation Report
- Cloud First Report
- General Dynamics IT Enterprise Center
- Gov Cloud Minute
- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
- Technology Insights
- The Cyber Security Report
- The Next Generation Cyber Security Experts
Shows & Panels
Pay raise, increased retirement contributions in President's FY2013 budget request
Monday - 2/13/2012, 1:50pm EST
The request included a 0.5 percent pay raise for civilian federal workers, who are now in the second year of a two-year pay freeze. The request also proposed increasing retirement contributions by 1.2 percent, phased in at 0.4 percent over three years.
"This change in employee contribution levels would not change the amount of each Federal employee's pension benefit, but would result in $21 billion over 10 years in mandatory savings," according to the budget request.
The American Federation of Government Employees said the changes would be a "$27 billion hit" to federal employees.
Another federal employee union said the changes to retirement benefits would be the "difference between keeping a roof over their heads and going into foreclosure," according to an emailed statement from the National Federation of Federal Employees.
"Even when factoring in the proposed 0.5 percent pay increase for 2013, the increased retirement contributions are a losing proposition for federal workers," the NFFE statement said. The union added, "This results in a net 0.1 percent pay increase, amounting to a total of $50 for the year, or $4.16 each month. After adjusting for inflation, this turns into a third year of net pay loss for federal employees."
The National Treasury Employees Union issued a statement stating it was "disappointed" with the pension contribution proposal.
"While this proposal is similar to the one submitted by the White House to the super committee last fall, it nonetheless fails to recognize the $60 billion contribution to deficit reduction already being made by the federal workforce through the two-year pay freeze," said NTEU President Colleen Kelley in a statement.
The Federal Managers Association also spoke out against the pension contribution increase.
"While Congress is simultaneously debating how to put more money into the paychecks of American citizens, it is incomprehensible that the same rationale does not apply to federal employees," said FMA National President Patricia Niehaus in a statement.
The President's budget request acknowledged the ongoing debate on the federal vs. private sector pay gap. A Congressional Budget Office report released last month found federal employees earn 16 percent more in pay and benefits compared with their private sector counterparts. However, this gap depended on the educational level, and in fact federal employees who had advanced degrees made less than their private sector counterparts.
The administration's budget request noted the type of work federal employees do has changed drastically over time. For example, the proportion of the workforce that does blue-collar work fell from 22 percent in 1981 to 9.7 percent in 2011.