Federal pay freeze Q&A

December 1, 2010

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You've been emailing Federal News Radio with your questions about the proposed federal pay freeze. We've put together a list of your most commonly asked questions and the answers to them.

If you have a question that isn't addressed below or isn't answered in our pay freeze story, please email us or post a comment and we'll do our best to get an answer for you.

We will continue to answer your questions in this space, so check back often to see what's new.

For complete coverage from Federal News Radio on the proposed federal pay freezes and pay debate in general, click here.

Questions from December 1, 2010:

Q: Are congressional salaries included in the proposed federal employee pay freeze?
A: No. But Congress will NOT be getting a pay raise in 2011. Congress's pay raises are automatic, however Congress voted this year to nix its automatic raise. It's the second year in a row that Congress acted to not receive its cost-of-living increase.

Q: Does the pay freeze affect cost-of-living adjustments?
A: No. Cost-of-living adjustments are a separate issue from the pay freeze. COLAs are applied to retirement pay and are based on inflation statistics. It had already been announced that there will be no COLA in 2011.

Q: Does the pay freeze affect civil service retirees?
A: No (see above.)

Q: If Congress does pass the pay freeze, will health insurance rates still go up?
A: Yes. Federal News Radio Senior Correspondent Mike Causey says this is the perfect time to take a look at your health insurance and decide if your current plan gives you the best bang for your buck. Federal employees have until Dec. 13, 2010 to make changes to their health plans during open season.

Questions from November 30, 2010:

Q: Is the pay freeze a done deal?
A: No. The pay freeze is a proposal by President Barack Obama that still needs to be approved by Congress. So, how likely is it to pass? Federal News Radio senior correspondent Mike Causey says it's essentially a "done deal." What we don't know at this point is when, where, or how it will travel through Congress. (More on this as it becomes available.)

Q: What does the pay freeze mean for my locality pay?
A: If the pay freeze is passed, locality pay will remain at 2010 levels while the pay freeze is in effect. So, if a fed's base pay includes an extra 15 percent for locality pay, they will continue to get that same 15 percent during the pay freeze.

Q: What does the pay freeze mean for step or within grade (WGI) increases? Will they be affected by the pay freeze?
A: An Office of Management and Budget official tells Federal News Radio, "employees will still be eligible for step increases."

Q: What does the pay freeze mean for promotions?
A: The pay freeze would not affect an employee's ability to receive more money through a promotion.

Q: What does the pay freeze mean for bonuses?
A: According to an OMB official, "OMB and OPM are evaluating the system of performance awards and in no case will the total amount of bonuses for 2011 exceed the 2010 level."

Q: Which federal employees are affected by the pay freeze?
A: The pay freeze would apply to all civilian federal (non-postal) employees, including those in various alternative pay plans and those working at the Department of Defense - but not military personnel.