Deep Freeze

President Obama's Aug. 3 memo freezing political appointees' bonuses is a sign of the economic times, but it's also just the latest restriction on pay for senior officials.

Political appointees currently earn between $145,700 and $199,700, according to the Office of Personnel Management, depending on their level in the Executive Schedule -- not including awards and bonuses. Aside from Tuesday's memo, restrictions already exist regarding pay and bonuses for political appointees.

For example, agencies are prohibited from offering bonuses or cash awards to political appointees during a presidential election period. For the purposes of that rule, the election period runs from June 1 of the calendar year in which the presidential election occurs until Jan. 20 of the year immediately following the election.

To comply with the law, OPM even instructs agencies to avoid giving honorary awards or informal recognition to political appointees during that period if the recognition appears to replace a bonus or monetary award.

"Agencies must exercise good judgment in selecting honorific items," OPM guidance states. "Such items should create the inherent impression of symbolic value (an honor being bestowed) rather than monetary worth (cash value). For example, presenting a commemorative photograph or a certificate in a simple, inexpensive frame would be appropriate, but presenting an expensive crystal carafe would not be."

During the Clinton years, there was an eight-year ban on cash bonuses for most political appointees, a policy that stemmed from perceived abuses under the George H.W. Bush administration. That ban was overturned by a White House memo in March 2002.

Debates over compensation for those at the highest levels of federal service tend to run parallel to overarching arguments on federal pay. Some experts insist the federal government must pay enough to lure workers from the private sector. This becomes particularly challenging at the top levels, where private sector executives earn considerably more money. But in the current fiscal environment, there are several critics who say the Obama administration should not waste taxpayer dollars "overpaying" their appointees.

In an election year where unemployment is likely among the most important issues, and when there have been repeated legislative attempts to freeze federal pay across the board, Obama is clearly acting on the side of caution.

Child Care Costs

The Defense Department has adjusted its child care fees for the first time in six years to better balance the incomes and expenses of service members.

Defense recently announced new guidelines for determining the amount families with kids enrolled in department-run child development centers and school-age care programs must pay.

Under the old policy, all families earning more than $70,000 annually paid the same price for child care services. The new fee structure includes three additional income categories, increases the cap on each income range, and establishes a top category for families earning $125,000 or more. Families might experience small increases or decreases in fees depending on total income.

According to Robert Gordon, Defense deputy undersecretary of defense, military community and family policy, the old fee structure was no longer "in sync" with family income for child care. The new policy also brings caregiver salaries more in line with the civilian sector, he added.

While Defense establishes fee ranges, officials for each service will set specific guidelines for their installations and must roll out the new policy by Sept. 30.