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Obama’s proposed 2014 budget: contribute more, but maybe see a pay increase

“For the third year in a row, the president’s budget blueprint disproportionately takes aim at federal employees in an effort to balance the budget,” National Active and Retired Federal Employees Association President Joseph Beaudoin said. “Federal employees who are currently enduring a three-year pay freeze have already sacrificed $114 billion from their pocketbooks for US budget savings over the next decade. Enough is enough.” This statement is in response to President Obama’s budget...

Obama says if debt ceiling is not raised, federal employees won’t get paid

In a press conference yesterday, President Obama said that federal employees and military service members will not get paid if Congress does not raise the debt ceiling. The federal government reached its debt limit Dec. 31, but Treasury Secretary Tim Geithner said last month he could finagle another two months or so by taking so-called “extraordinary measures” before the debt ceiling would have to be raised. That implied Congress had more time to act and the government could keep running as-is until the end of February....

The House Overwhelmingly Overturns Obama Executive Order

Last Friday President Obama caused quite a stir with his executive order that ended the freeze on wages for Congress and federal workers, amounted to an $11 billion pay raise overall. On Tuesday evening, the U.S. House of Representatives approved legislation that blocked the pay raise. The Hill reports: "The House approved legislation on Tuesday that would block a pay increase for federal workers and members of Congress scheduled to take place in March. "Members voted 287-129 in favor of the bill from Rep. Mike Fitzpatrick...

Deal to Raise Employees’ Retirement Contribution

Federal negotiators stuck a deal in mid-February to significantly increase future federal employees' retirement contributions which will help pay for an extension is unemployment benefits. According to the American Federation of Government Employees, newly hired and rehired federal employees would have 3.1% of each paycheck put toward their Federal Employees Retirement System pensions. The current contribution rate is only 0.8%, so that amounts to a 2.3% increase. The increase will affect new hires and rehires beginning...

Federal Pay Frozen in 2012

After receiving a 3.5% pay increase in 2008, a 3.9% raise in 2009 and a 2% increase in 2010, federal employees have seen their pay frozen for two years. Federal employees can still receive bonuses and get a pay increase if they earn a promotion. The House has recently voted to continue the pay freeze through 2013, saying it would save taxpayers $26 billion. The proposed budget put forth by President Obama last week calls for a 0.5% pay increase and 1.2% increase in retirement contributions.

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