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Hosts Tom Temin and Emily Kopp bring you the latest news affecting the federal community each weekday morning, featuring interviews with top government executives and contractors. Listen live from 6 to 9 a.m. or download archived interviews below.
Two year pay freeze would really mean three
Tuesday - 11/30/2010, 8:40am EST
Federal employees' pensions are based on the highest three-year average salary (usually the last three years worked). If that figure is frozen it could mean smaller than expected benefits when workers do retire.
"People's high-three won't go up," Causey said.
Federal employees will "be getting a salary but their retirement annuities won't go up," Causey said.
A freeze could affect other groups of workers, he said. Federal pay is tied to the salaries of federal contractors, foreign embassy employees and Washington-based unions.
Causey said the freeze would have a "rippling effect" but added, "This won't have a crippling effect."