The pay and benefits proposals in President Clinton's fiscal 2001 budget will give the average federal employee an additional $2,658 every year, OPM Director Janice R. Lachance said Monday.
Just two of the 2001 pay and benefits proposals- a 3.7 percent pay increase and a reduction in employees' retirement contributions- would cost the government $4.3 billion next year. Asked how the proposals would be paid for, Lachance said: "Well, it's a balanced budget."
OPM hailed the pay and benefits proposals as a triumph for civil servants. "Our federal employees deserve-and have earned-every single benefit included in this budget," Lachance said.
American Federation of Government Employees President Bobby Harnage called the budget proposals a step in the right direction, but said the union will push for a bigger pay raise.
"A 3.7 percent pay increase begins to address the huge pay gap, but does not bring federal pay in line with private sector pay," Harnage said.
The biggest benefit in the President's budget is the proposed pay raise, which would cost the government $3.1 billion next year.
The budget also included the following proposals:
- Allow federal employees to pay health insurance premiums out of pre-tax income through the Federal Employees Health Benefits Program (FEHBP).
- Offer dental insurance to federal employees through FEHBP.
- Provide for parity in mental health benefits in FEHBP.
- Continue to require FEHBP plans to offer a full range of contraceptive options.
- Repeal higher retirement contributions enacted by the Balanced Budget Act of 1997 to pre-1999 levels.
- Reverse congressional action taken last year that delayed the last paycheck of fiscal 2000 for some employees, returning pay dates to their normal schedule.
- Allow newly hired federal employees to begin contributing to the Thrift Savings Plan immediately.
- Make group long-term care health insurance available to federal employees.
- Allow all agencies the authority to offer employee buyouts of up to $25,000.