The Director of the Office of Management and Budget (OMB) Jack Lew sent House Speaker Nancy Pelosi (D-CA) proposed legislation to institute a two-year freeze on federal civilian pay raises. Lew urged Congress to include this language in final action on FY2011 appropriations. President Obama announced the freeze proposal last week. Lew reiterated the president’s statement that the freeze should not be interpreted as a criticism of federal employees’ work, but reflects existing budgetary realities Referring to the 1.4 percent raise included in the FY2011 budget request, Lew said that the administration “no longer believe[s] these raises for federal employees can be justified in the current fiscal situation.” OMB projects that the civilian pay freeze for 2011 and 2012 would save $2 billion in 2011, $28 billion over five years, and more than $60 billion over the next 10 years. Administration officials have said the freeze will not preclude federal civilian workers from receiving any pay increases during the next two years. Pay increases accompanying promotions would not be affected and agencies could still pay bonuses and award in-grade increases to eligible employees. Rep. Jason Chaffetz, (R-Utah), currently a member of the House Committee on Oversight and Government Reform, objected to this exception to the pay freeze policy. He plans to introduce legislation in the 112th Congress next year to stop in-grade increases and limit the size of the federal workforce.
OMB sends proposed pay freeze legislation to Hill
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