1. 2-Year Pay Freeze BY THE NUMBERS:
for Federal workers
federal Workers 2.1 MILLION
NUMBER OF CIVILIAN FEDS THAT WILL BE AFFECTED
Freeze will save:
On November 29, 2010,
$2 billion in FY 2011 Without congressional action, federal employees
President Obama announced
a two-year pay freeze for $28 billion over 6 years would automatically get a 0.9% increase under
government employees. The
freeze will take effect on
$60 billion over 10 years the formula set by a 1990 law. They received a
January 1, 2011 if Congress 1.9% pay increase in 2010.
approves the move by the end
of the year.
According to a recent In a 2010 National League of Cities study,
The freeze applies to all CNN poll, 64% say step
Executive Branch workers -- 51% of cities had frozen salaries of city employees;
including civilian employees of in right direction, 36% 22% had revised union contracts to reduce some pay and benefits;
the Department of Defense -- say not enough money 19% had instituted furloughs.
but not military personnel, saved, don’t bother.
government contractors,
postal workers, members of
Congress, Congressional
staffers, or federal court
judges and workers.
3 MYTHS DEBUNKED
Myth: Pay freezes are Myth: The freeze will Myth: Federal employees
common. affect pay grade and weren’t expecting any
step increases. upcoming increases.
Fact: The freeze would be Fact: The freeze is only
the first two-year halt to Fact: Federal employees
applicable to the annual were scheduled to
federal raises in modern Cost of Living Allowance receive a 1.4% across-
history. (COLA). The pay freeze will the-board raise in 2011
not affect step/grade and 3.9% in 2012.
increases or bonuses.
SOURCES: White House Office of the
Press Secretary, Washington Post,
The Hill, NYTimes, CNNMoney For more information, visit www.govloop.com. To voice your opinion, we invite you to join our Facebook page.