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Obama signs bill granting 2 percent pay raise to feds

Moratorium extended on new public-private competitions for federal work

President Obama signed a $1.1 trillion omnibus funding package for fiscal 2010 in late December 2009 that includes a 2 percent raise for civilian federal employees and extends a moratorium on new public-private competitions for federal work.

Congress stuck with Obama’s recommendation for a 2 percent raise for civilian employees, but not with his plan to freeze locality pay at 2009 rates. Lawmakers instead allocated 1.5 percent of the raise toward base pay, and 0.5 percent toward locality pay.

The bill (H.R. 3288) also bans funding for government use of private tax collectors and requires non-DoD agencies to compile a list of contracts performed by private contractors.

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Federal Daily, an 1105 Government Information Group site, features news and resources for federal and postal employees.

Reader comments

Tue, Feb 9, 2010 cdg

A few months ago, the government (disingenuously) claimed that inflation was negative, and thus provided no "cost-of-living" increase to social security beneficiaries, and provided no inflation-adjustments to the various confiscatory tax brackets and deductions limitations. So, if there is no inflation, how do they justify a 2% increase for federal employees (or the much larger increase that Congress voted for themselves a few months ago)? Of course, anyone who actually shops for groceries and other essentials, and has seen prices double in the last few years, KNOWS that inflation is much higher than the government is telling us. It's time to replace the entire government with more honest individuals.

Wed, Jan 13, 2010 RayW

For those complaining that 2% is too much compared to the private sector, a Google search indicates that the max raise Federal employees get is limited to what the average private sector pay increases are. So if we are cut back to 2%, that means that on the average the private sector is getting more. And what about the times when we got 10% (I was in industry at the time and not gov) and the poor slobs in the gov got less than half that (family member in the gov at that time)?

Mon, Jan 11, 2010

The percentage of pay raise decreases for all persons employed, whether federal, corporate, or self-employed; yet the percentage of daily and APR continues to increase for the credit card companies. There was a time not too long ago where any interest rate over 10 cents on the dollar was considered loan-sharking and illegal. Loans and credit is encouraged, but we have to put up with a continuous hike in interest charged. This is occuring even for persons who have not missed payments and paid on time. Americans are tired of Credit companies promoting good deals on the one hand and gouging with the other. SOMETHING NEEDS TO BE DONE NOW!

Mon, Jan 11, 2010

I hear the unstated belief that federal jobs are secure, have great benefits, and avoid the risks of private sector jobs. If you think the jobs go forever, you were never on the wrong side of BRAC. Hogwash, I know what my counterparts in the private sector get and have been courted by a few major defense contractors to transition over. I don't because I like the influence I have on this side of the contract. I also know that my responsibilities and authority are not compensated the way the private sector does. Their benefits and bonuses make ours look like a joke. When their company succeeds they benefit.

Mon, Jan 11, 2010

Nothing wrong with a 2% pay raise in this economy. Lots of people are either out of work, experiencing pay cuts, shortened work hours or unpaid furloughs. If you think you're being treated unfairly by ONLY receiving a 2% raise, you could always quit and let someone else have that terrible job with the 2% raise.

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