Catch-all funding bill includes pay parity, personnel provisions

The $516 billion omnibus spending bill approved by the House late Monday includes not only a 3.5 percent pay increase for federal civilian employees, but other provisions related to contracting and efforts to overhaul agency personnel systems.

The 3.5 percent figure is half a percent higher than the raise proposed by the Bush administration, and is equal to the raise Congress already has apportioned for members of the military. The Senate is expected to vote on the bill this week.

The bill marks a victory for members of Congress who fought for a bigger increase over President Bush's objections. Last month, he issued an alternative pay plan including a 3 percent adjustment for 2008. Enactment of the consolidated appropriations bill would override that order.

"The Washington, D.C., regional delegation fought hard to ensure that a fair pay adjustment for federal employees was enacted this year," said House Majority Leader Steny Hoyer, D-Md. "I am pleased that the federal workforce will be rewarded for their dedication and valued service to this nation."

According to data provided by the Office of Personnel Management, federal employees in the Washington Metro area will receive a 4.49 percent overall adjustment if the 3.5 percent figure is approved. Employees in the "Rest of U.S." category would receive a 2.99 percent overall increase.

In addition to the pay raise, the catch-all bill would provide federal employees with the same rights to appeal agency contracting decisions that government contractors hold. The bill also would prevent contractors from gaining an unfair advantage by offering their employees substandard or no health or retirement benefits when bidding on federal work.

Colleen Kelley, president of the National Treasury Employees Union, noted that the provisions are just two major pieces of the omnibus measure that duly recognize federal workers. "Starting with the pay raise and contracting- out language, there is much that is positive in the proposed omnibus appropriations bill," she said.

The measure would zero out funding for the Homeland Security Department's new personnel system, called the Human Capital Operational Plan. The bill would grant $10 million to DHS to help boost morale and other issues identified in a 2006 federal workforce survey. The department ranked near the bottom in the employee rankings.

The bill also would provide a modified law enforcement benefit to Customs and Border Protection officers, providing them the ability to retire at age 50 after 20 years of service, or at any age after 25 years of service.

Under current law, only employees classified as law enforcement officers have that benefit. Because CBP officers do not currently hold law enforcement officer status, they get the same retirement benefits as regular federal employees, who are not eligible for retirement until they have 30 years or more of service and are at least are 55 years old.

Additionally, the omnibus bill would require the Transportation Security Administration to submit a report to Congress on the implementation of its controversial new pay and personnel system. TSA would be required to report on the comparison between managers and nonmanagers relating to performance and pay increases, the type and amount of all raises that have taken effect for each level of performance, and the attrition of employees covered by the system.

"For federal employees, this legislation stands as evidence of the importance to them on issues that impact their daily lives of electing to federal office candidates who both understand and respect the work they do for our country," Kelley said.