Obama Nixes Locality Pay in 2010
Alyssa Rosenberg <a href="http://www.govexec.com/story_page.cfm?articleid=44149&dcn=todaysnews">writes</a> at <em>Government Executive</em> that President Obama is not only <a href="http://wiredworkplace.nextgov.com/2009/12/obama_limits_2010_pay_raise_to_2_percent.php?oref=latest_posts">limiting the 2010 pay raise for federal employees to 2 percent</a>, he also plans to freeze locality pay rates at 2009 levels. The move makes Obama the first president in history to freeze locality pay rates.
Alyssa Rosenberg writes at Government Executive that President Obama is not only limiting the 2010 pay raise for federal employees to 2 percent, he also plans to freeze locality pay rates at 2009 levels. The move makes Obama the first president in history to freeze locality pay rates.
Traditionally, locality pay rates are combined with an increase in base pay to make up the total raise that federal employees receive annually. But Obama's proposal would allocate the entire 2 percent pay raise proposal to employee's base pay. The move will help federal employees in areas where the overall pay gap between federal and private sector pay has shrunk, but could have a detrimental effect on areas where the pay gap has increased and the cost of living is high.
In a Nov. 30 letter to House Speaker Nancy Pelosi and Vice President Joe Biden, Obama contended that his pay plan should not increase the attrition rates of General Schedule employees. "The GS 'quit' rate continues to be very low (2.1 percent on an annual basis), well below the overall average 'quit' rate in private enterprise," he wrote.
What is your reaction to Obama's move to limit the pay raise and freeze locality pay in 2010? Is it a welcome move given the many challenges facing the nation and government, including the sluggish economy and rising unemployment? Is it possible that Obama's pay plan will increase the General Schedule quit rates, specifically among federal IT workers?