Bush approves 3.1 percent base pay raise

Clarification: An earlier version of this story left some readers with the impression that the 3.1 percent pay increase goes into effect this coming Saturday. It does not go into effect until the beginning of 2003. President Bush last weekend allowed a provision to go into effect that would grant federal employees a base pay increase of 3.1 percent next year, but a decision about additional locality-based increases is still pending.

The president had until the end of the day on Aug. 31 to implement an alternative to the 3.1 percent across-the-board pay raise next year. He did not offer such an alternative.

The 3.1 percent figure was determined by using a formula established under the 1990 Federal Employees Pay Comparability Act (FEPCA). The act was designed to close the gap between federal and private-sector salaries, but raises under the law have never been fully funded.

In July, the House voted to give federal civilian employees a total pay raise averaging 4.1 percent in 2003. The raise, included in the fiscal 2003 Treasury-Postal Appropriations bill, provides civilian employees with the same percentage increase as members of the military. If the Senate agrees to the 4.1 percent raise, then Bush would have to veto the Treasury-Postal bill in order to deny employees the larger increase.

If Congress and the president agree on a 4.1 percent raise, Bush could announce that the additional 1 percent would be allocated among workers based on where they work. But he must act on the locality pay issue by November. Otherwise, federal workers would get double-digit locality-based raises based on the FEPCA formula.

The administration's 2003 budget proposal included a 2.6 percent pay increase for civilian workers, and as of last week, an Office of Management and Budget spokeswoman said the president was standing by that proposal.