Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

President Nears Federal Pay Raise Deadline

President Nears Federal Pay Raise Deadline

federal employeesPresident Obama must formally announce the 2016 federal pay raise proposal by August 31. Sources say that President Obama will ask for a 1.3 percent raise across the board for civilian federal employees. President Obama included this figure in his 2016 fiscal budget and he has continued to support that number since the initial projection.

FEPCA Possibility

If President Obama fails to bring his alternative pay plan to Congress before the August 31 deadline, the increase will automatically adjust according to the 1990 Federal Employees Pay Comparability Act. This act says that raises will adjust according to changes in the Employment Cost index less .5 percent. If the president misses the deadline, federal employee salaries would increase by 1.8 percent.

Despite the recommended increase by the FEPCA, presidents typically propose their own increases, which is allowable under the law. The purpose of the FEPCA is to provide an annual salary increase to help bring private and public pay closer together.

The Obama administration has taken criticism for low federal employee salary raises, including three years without any raises at all. The government hopes these new pay areas will offer new avenues for increasing pay to federal employees.

New Locality Pay Areas

Civilian federal pay rates were frozen in 2010 and this is not likely to change in 2016, however, some federal employee salaries could see in increase thanks to the creation of 13 new locality pay areas. These pay areas will provide a significant raise to just over 100,000 federal employees.

To offset the significant increases in these new regions, the government expects to maintain lower increases in current areas. New proposed pay regions include: Albany, New York; Albuquerque, New Mexico; Austin, Texas; Charlotte, North Carolina; Colorado Spring, Co; Davenport, Iowa; Harrisburg, Pennsylvania; Kansas City, Missouri; Laredo, Texas; Las Vegas, Nevada; Palm Bay, Florida; St. Louis Missouri; and Tuscan, Arizona.

These new pay rate areas take effect in 2016.

Congress Must Approve the Raise

If the president does present the projected 1.3 percent increase to Congress, Congress must still approve the raise. In theory, Congress could ignore the president’s recommendation and the FEPCA formal in favor of creating their own pay raise proposal, though experts do not expect this to happen.

As of earlier this week, the House has already passed half of the 12 proposed spending bills for 2016, though the Senate has yet to pass any. Last year Congress approved a 1 percent pay federal salary increase proposed by President Obama. Congress also approved a 1 percent increase in 2014 and this was following three years of frozen pay.

Historical records show that the Obama administration has offered the lowest federal salary increases in history. In 2010, federal employees saw a pay increase near 4 percent. In 2011 through 2013, pay raises were frozen and 2014 and 2015 gave federal employees an increase of only 1 percent.

Some lawmakers have proposed a legislation that would provide a 3.8 percent pay increase, though most experts do not expect this bill to be successful.

President Obama has until Monday to submit his proposal.

Tamila McDonald Disclaimer

Contact Tamila McDonald

Search for Public Sector Retirement Expert.

Receive the Best advice.

PSR Experts can help you determine if Public Sector Retirement is right for you or if you should look for alternatives.

The Best Advice creates
the best results.

Recent Articles

More Articles by Tamila McDonald

paid leave federal employees

Obama trying to get the US on par with Parental Paid Leave

Although the US is the largest economy in the world, it still lags behind every other Industrialized Nation in regards...

Tax Rule Changes for 2016 You Need to Know

Instead of having to wait for last minute extensions to certain tax provisions or having to retroactively adjust your tax...

Federal IRS Employees Bear the Brunt

Federal IRS employees Federal IRS employees yet again bear the brunt of the public’s displeasure about their service in 2015....

Search For Public Sector Retirement Expert

Receive the Best advice.

PSR Experts can help you determine if
Public Sector Retirement is right for you or if you should
look for alternatives.

The Best Advice creates

the best results.

Subscribe to our Newsletter

"*" indicates required fields

Our Readers Deserve The Best PSHB and USPS Health Benefits Guidance

Licensed insurance agents who understand PSHB, Medicare, and USPS Health Benefits Plan are encouraged to apply for a free listing.

This field is for validation purposes and should be left unchanged.

Book Phone Consultation

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Get In Touch

Stay up to date on the latest information about Public Sector Retirement.

The Best Advice Creates The Best