OPM to consider requests for certain pay raises

The Office of Personnel Management may approve pay increases for certain General Schedule employees in 2012, according to the agency's top official.

In a July 8 memo to federal chief human capital officers, OPM Director John Berry wrote that there will be no increases in special pay rate schedules in January 2012 except under "extraordinary circumstances." OPM will review special rates to determine whether raises for specific occupations, grades and locations are necessary to boost recruitment and retention.

Federal civilian employees currently are under a two-year pay freeze. Still, Berry on Dec. 30, 2010, issued a memo to agency heads clarifying that certain pay raises would be excluded from the freeze, including special increases for specific job categories. Promotions, step increases and awards also are exempt.

To gain approval of special rate requests, agencies "must make a compelling case that denial of a special increase would result in exceptionally severe recruitment and/or retention difficulties and would have an extremely negative impact on critical agency operations during the coming year," OPM stated.

Special rates in nonforeign areas -- including Alaska, Hawaii, American Samoa, Puerto Rico, the Northern Mariana Islands and Guam -- will rise next year, however. Legislation passed in 2009 provided for a three-year phase-in of locality pay for these geographic locations, in conjunction with a reduction in cost-of-living adjustments. Though locality pay is frozen, employees in these areas will receive an increase as part of the transition. OPM will complete the phase-in process with two separate adjustments in January 2012.

Agencies seeking exceptions or planning to reduce or terminate a special rate schedule must submit requests to OPM by Oct. 13.