Changes to federal pay and benefits often come in small increments rather than in sweeping waves of reform.
Take the House version of the 2003 Defense Authorization bill (H.R. 4546), which the House passed last week. There are no big pay and benefits provisions for civilian workers. Still, the six minor pay and benefits provisions that made it into the bill affect thousands of federal employees and could have a significant impact on their wallets. The provisions propose:
- Opening the new federal long-term care insurance program to the 140,000 employees of the Defense Department's "nonappropriated fund instrumentalities," such as military exchanges and the Stars and Stripes newspaper.
- Allowing Defense employees who are laid off through reductions-in-force between now and 2006 to take their severance pay in a lump-sum payment. The current authority for the lump-sum payments expires next year. Last year, about 1,200 Defense employees were RIF'd.
- Creating special pay rates for federal employees who are exposed to asbestos at work.
- Allowing Defense employees (and some Energy Department workers) who are laid off or resign after receiving reduction-in-force notices through 2006 to keep their Federal Employees Health Benefits Program coverage-and only pay the employee share of the premium. The current authority for such coverage expires next year.
- Letting the Office of Personnel Management conduct wage surveys for blue-collar workers every three years, instead of every two years.
- Giving the secretary of Defense the authority to establish professional certification standards for Defense accountants.
The Senate version of the bill (S. 2225) includes the professional certification standards provision. The Senate Armed Services Committee approved the bill on Friday. Meanwhile, Rep. Connie Morella, R-Md., introduced H.R. 4580 last month. The bill would increase the government's share of federal employees' health insurance premiums from 72 percent to 76 percent. It would also order agencies to set up good training programs for employees. TSP News
Another Morella bill has the best chance of any pending federal pay and benefits legislation of becoming law soon. The bill would allow federal employees age 50 or over to contribute more money to their Thrift Savings Plan accounts each year.
The bill is awaiting action on both the House and Senate floors (H.R. 3340 in the House; S. 1822 in the Senate) after gaining approval by authorizing committees in March.
After the bill passes Congress and President Bush signs it into law, the Federal Retirement Thrift Investment Board, which runs the TSP, will issue rules explaining how federal workers can take advantage of the so-called "catch-up" contributions. If the bill becomes law in enough time for the board to issue the rules this year, then employees 50 and over would be able to put an extra $1,000 in their TSP accounts before the end of the year. If the bill takes too long, then employees won't be able to contribute extra money until next year.
In the meantime, the summer TSP open season starts this week. During this open season, federal employees can change the amount of their regular contributions to their TSP accounts. The open season runs May 15 to July 31.
WIGIs and Pay Raises
Here's a message from Pay and Benefits Watch reader Joseph C. Orwat about last week's column about within-grade increases (WIGIs):
"The following two paragraphs mislead the reader.
'Each of the 15 grades on the General Schedule, the government's pay scale, has 10 steps. Most employees start at Step 1 of each grade. They wait one year to progress to Step 2, another year to Step 3 and another year to Step 4. The waiting period for Steps 5, 6 and 7 is two years. It's three years for Steps 8, 9 and 10.
'For example, a GS-12 employee in Washington hired in 1994 would have started at Step 1, with a $42,003 annual salary. Today, the employee would be a Step 6, making $64,975.'
"It gives the impression that the $22,972 increase was due to step increases. That is misleading. There are several components that make up the $22,972 difference. The main contributors are the [general] pay increase every January and increases in locality pay.
"Using the 2002 Washington pay chart, the difference between a GS-12 Step 6 and a Step 1 is only $9,281. That turns out to be average of $0.64 per hour raise over 7 years due to step increases ($0.64 * 2087 * 7 = $9,281) due to WIGI.
"Of the total salary increase, $22,972, approximately $13,691 is due to the January [general increase] and locality pay increase."
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