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Obama to Freeze Pay for Most Federal Workers (for 2 Years)
NYT ^ | 11-29-10 | Peter Baker

Posted on 11/29/2010 8:15:05 AM PST by pillut48

WASHINGTON -- President Obama plans to announce a two-year pay freeze for civilian federal workers later Monday morning, according to an administration official, the latest White House move intended to demonstrate concern over sky-high deficit spending.

(Excerpt) Read more at nytimes.com ...


TOPICS: Breaking News; Business/Economy; Government; Politics/Elections
KEYWORDS: notbreakingnews
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To: pillut48

NO GOOD - THEY are already making 10 times their worth!! Time to go back to salary of ten years ago!!

NO GOOD!!! obamanation is BLOWING SMOKE for the masses


101 posted on 11/29/2010 1:07:14 PM PST by bareford101 (For me, there is no difference in a tolerant, open mind and a cess pool. Both are open to filth.)
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To: pieceofthepuzzle
Translation: “I’ve already increased the federal payroll extravagantly, so I can afford to freeze it for two years until after the next election.”

EXACTLY...and it makes me look like I'm really trying to help Americans.

102 posted on 11/29/2010 1:07:34 PM PST by TribalPrincess2U (demonicRATS= Obama's Mosque, taxes, painful death. Is this what you want?)
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To: Ann Archy
Are ytou saying that Fed. Govt. ret. empl. gets SS? I don’t think so....they get WAY more than SS.

If a Federal Government employee is retired at this point he/she either has a pressing medical concern to be retired OR opted out of Socialist Security when they hired in.
103 posted on 11/29/2010 1:09:28 PM PST by MikefromOhio (There is no truth to the rumor that Ted Kennedy was buried at sea.....)
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To: glm
The FERS system has the employee paying social security premiums at 7%, plus the Federal Government pays an automatic 1% in the Govt. 401(k) plan [called Thrift Savings Plan] but it will match up to 5% of what the employee contributes in their 401(k). So an employee can put in 5% and the Govt. will match the 5%. This is very similar to big business where the Company provides matching contributions. Heck, even my parents and their small business did something similar.

thanks for the info. TVA (which some may not know is a Federal agency) has its own retirement system, TVARS. They also have a real 401K, operated by Fidelity. There is a match up to a certain amount, but I don't know what that is. Probably fashioned similar to FERS, but separate (separate but equal, interesting concept). Reagan was trying, at the time, to spin off or privatize TVA but congress wouldn't go along with that. I think he was setting it up as a self-sustaining entity, which it mostly is these days.

104 posted on 11/29/2010 1:14:44 PM PST by meyer (Hey Obama - It's the end of the world as you know it.... ..... and I feel fine!)
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To: Soothesayer

“These must be those low wage federal workers who need to be punished for voting Republican.”

Probably those in DoD.


105 posted on 11/29/2010 1:14:56 PM PST by PLMerite (Fix the FR clock. It's time.)
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To: glm

They did NOT institute FERS because the CSRS system had a problem. They instituted FERS in order to SAVE SOCIAL SECURITY by putting millions of Federal workers as new payers into that (still failing) system. CSRS was doing fine.


106 posted on 11/29/2010 1:49:34 PM PST by Help!
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To: pillut48

You raise salaries across the board in the first year, sufficient to weather a 2-year freeze, and THEN you freeze ‘em. Voila! It looks like you’re doing something! One of the oldest Washington tricks in the book. Slimeballs.


107 posted on 11/29/2010 2:23:50 PM PST by CanaGuy (Go Harper! We still love you!)
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To: Americanexpat
The biggest problem with this whole discussion is that Obama and his minions have yet to match orders of magnitude between the annual deficit and his proposed cuts. Freezing federal pay will save $60 billion over 10 years. When we are running trillion plus dollar deficits every year, saving $60 billion over ten doesn't mean squat. Taxing the rich, using his numbers, only saves $700 billion over ten years, when he blew more than that on his failed stimulus plan.
108 posted on 11/29/2010 2:38:41 PM PST by USNBandit (sarcasm engaged at all times)
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To: USNBandit

I agree 100% and until they put a spending freeze in place at the same time they are doing all these budget cuts we are peeing in the wind.


109 posted on 11/29/2010 2:43:14 PM PST by Americanexpat
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To: bareford101

I will believe they are serious about this crap when they get the labor unions under control. The unions have done more to cause jobs to go overseas and inflate wages than anyone else.


110 posted on 11/29/2010 2:46:55 PM PST by Americanexpat
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To: hoyt-clagwell
generous benefit package

Generous my azz....as a gub'mint employee...I pay for my benefits....the system helps with those benefits but they are FAR from generous....

111 posted on 11/29/2010 2:51:30 PM PST by Getsmart64
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To: pillut48

Did you hear the caller to Rush’s show today? The “wages” are not actually being frozen. In a nutshell, if an employee gets moved up a step within his GS range, he gets his increase as long as it is accompanied by an increase in “step.” (At least, I believe this is what the caller was saying...)


112 posted on 11/29/2010 2:54:08 PM PST by redhead ( ALASKA: Step out of the bus and into the foodchain...)
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To: skookum55
More http://www.zerohedge.com/article/obama-freeze-government-salaries-all-time-high
113 posted on 11/29/2010 3:09:45 PM PST by FromLori (FromLori)
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To: JudyinCanada

“Freezing the current rates guarantees they will be grossly overpaid for the next two years.”

Judy, just who are the “they” you are talking about? Would that be the fed employee working at a daycare “grossly overpaid” at $8 per hour or the retail clerk making $7.50 per hour. Their pay just got frozen, obviously to your delight.

Rush Limbaugh who prides himself on his research has his head up his arse on this one. Like people on this site that think this is so good Limbaugh has no clue how the fed system is setup. In many fed jobs people earn less than or equal to a Wal-Mart employee, they are called WG, WS, NS, NF and some GS. They just had their pay frozen. The vast majority of the “they” you refer to do not make as much as an assembly line worker at Ford. The “they” are professionals from the trades, medical profession, law enforcement and former military personnel with very specific training, not common in the public sector. “They” have to maintain all the same professional certifications as their private sector counterparts; many jobs require a degree along with specific training and years of experience in non –private sector systems and familiarity with hundreds of federal regulations and rules. The “they” are nurses, laundry workers and hospital orderlies, retail clerks in post exchanges, janitors, teachers, police, pilots, technicians and landscapers. Many professional could make more money in the private sector, but choose for various reasons to work in the public sector.

Many of the “they” serve in combat zones along side the military or Dept of State and are compensated for their risks. Obama has indiscriminately, with your approval frozen all federal pay. I am sure you have guessed that I am a federal employee. I have a graduate degree in my field and I have over 30 years of experience in my field. I do make slightly more than a private sector position I was offered. The additional compensation was directly related to the grad degree I worked so hard for. The civilian sector position did not require a degree. My federal job required a degree. Millions of us provide vital services for the military and federal police agencies at a fair compensation. The unintended consequences of this pay freeze will be more contractors, a decrease in service and more unemployment.


114 posted on 11/29/2010 4:46:04 PM PST by OldGoatCPO
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To: redhead

Rush is an idiot and so is his caller. Millions of Fed employees ARE NOT “GS” employees. There are NO steps in the majority of Fed jobs. Only a GS position has steps. Obama’s freeze will freeze merit pay for all non-GS employees most who make less than an assembly line worker at FORD.


115 posted on 11/29/2010 4:51:03 PM PST by OldGoatCPO
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To: hoyt-clagwell

Obviously you are not a fed employee, I am, I pay more for my benefits than my wife who is a nurse for a private sector clinic. I can not believe this crap on a conservative blog.


116 posted on 11/29/2010 4:59:01 PM PST by OldGoatCPO
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To: hoyt-clagwell

Obviously you are not a fed employee, I am, I pay more for my benefits than my wife who is a nurse for a private sector clinic. I can not believe this crap on a conservative blog.


117 posted on 11/29/2010 5:00:40 PM PST by OldGoatCPO
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To: hoyt-clagwell

Obviously you are not a fed employee, I am, I pay more for my benefits than my wife who is a nurse for a private sector clinic. I can not believe this crap on a conservative blog.


118 posted on 11/29/2010 5:00:52 PM PST by OldGoatCPO
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To: scbison

You are wrong, I am with DoD, we have many low wage employees making between $7.50 to $10 hourly. They are not GS employees, they have other titles and many are one to two year temp positions. There are many contractors for various low skill jobs, but it depends on the region.


119 posted on 11/29/2010 5:14:59 PM PST by OldGoatCPO
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To: OldGoatCPO

The are low wage and NOT GS/Federal employees? If so, that is my point, there are low wage jobs but not on FEDS payroll but a contractors payroll and not included on average salary federal since thye are not on payroll.


120 posted on 11/29/2010 5:53:38 PM PST by scbison
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To: OldGoatCPO

The are low wage and NOT GS/Federal employees? If so, that is my point, there are low wage jobs but not on FEDS payroll but a contractors payroll and not included on average salary federal since thye are not on payroll.


121 posted on 11/29/2010 5:53:50 PM PST by scbison
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To: glm

Federal pensions were and are (for those still under the old system) funded through employee contributions which were at a higher rate than SocSec rates, they are not all funded by the taxpayers. These pensions would be frozen by Urkle’s “idea” as well.


122 posted on 11/29/2010 7:23:38 PM PST by arrogantsob
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To: WOBBLY BOB

Federal pensions are a small part of the federal budget.


123 posted on 11/29/2010 7:25:03 PM PST by arrogantsob
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To: kabar

Not true. There are only two systems and no one can join the older one now. After 1983 there is no more choice everyone is under the SS system.


124 posted on 11/29/2010 7:28:32 PM PST by arrogantsob
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To: VanShuyten

Only those in the politically correct classes: women and minorities will be given such raises. It is extremely difficult for the most highly educated and competent white males to get promotions in most agencies of the government.


125 posted on 11/29/2010 7:30:44 PM PST by arrogantsob
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To: jazminerose

It might but federal unions do not negotiate pay.


126 posted on 11/29/2010 7:32:31 PM PST by arrogantsob
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To: TexasFreeper2009

He has no legal authority to use the Slash and Burn approach you favor. Congress is a separate branch of government is may surprise you to learn and the executive has no power over it for the most part. Retirement plans are established at the time of hire and that is what Congress has approved. The Courts have repeatedly ruled on the right of contract which is inviolable in a country under the Rule of Law.


127 posted on 11/29/2010 7:38:36 PM PST by arrogantsob
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To: arrogantsob

congress can do anything it wants to federal retirement plans and federal pay with the presidents signature of course.


128 posted on 11/29/2010 7:43:47 PM PST by TexasFreeper2009 (Obama = Epic Fail)
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To: arrogantsob
There is the FERS system and SS plus the TSP. Those are the three legs of the stool. Did you read my post #94?

The FERS replaced CSRS. SS is in addition to FERS. Federal employees pay into both FERS and SS.

129 posted on 11/29/2010 7:47:38 PM PST by kabar
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To: FromLori

Good thing those columns are different colors because they compare different things entirely. There is very little similarity between federal jobs and those in the private sector.


130 posted on 11/29/2010 7:48:45 PM PST by arrogantsob
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To: arrogantsob
These pensions would be frozen by Urkle’s “idea” as well.

CSRS pension increases are linked to the CPI-W, the same as SS. There have been no increases for this year and next due to the formula.

131 posted on 11/29/2010 7:50:51 PM PST by kabar
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To: OldGoatCPO

Rabble rousing is even more fun when the rouser doesn’t know what he is talking about. Nothing is more fun than kicking federal employees. A version of Class Warfare.


132 posted on 11/29/2010 7:52:55 PM PST by arrogantsob
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To: TexasFreeper2009

Congress can change any plan for the future but it cannot change vested rights in plans former employees signed on to. Those are contracts and not even Congress can unilaterally change them.

No question it can say “from the day blah, blah, blah...” but it cannot say “We are reducing your pension by half from this point...”


133 posted on 11/29/2010 7:57:03 PM PST by arrogantsob
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To: TexasFreeper2009

Congress can change any plan for the future but it cannot change vested rights in plans former employees signed on to. Those are contracts and not even Congress can unilaterally change them.

No question it can say “from this day forward blah, blah, blah...” but it cannot say “We are reducing your pension by half from this point...”


134 posted on 11/29/2010 7:57:39 PM PST by arrogantsob
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To: kabar

If you were not implying or saying that one could retire with CSRS and FERS then my apology. Misinformation is so common wrt federal pay it is easy to see it when it is not there.

SS is the biggest part of FERS. There is no other pension.


135 posted on 11/29/2010 8:01:33 PM PST by arrogantsob
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To: kabar

Right


136 posted on 11/29/2010 8:03:22 PM PST by arrogantsob
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To: OldGoatCPO
We can cut the federal workforce by 15% to 20% and function just as well. Federal employee pay and benefits have eclipsed the private sector and job security is far greater. The feds can retire earlier and their pensions are tied to COLA (CPI-W). Spouses receive 55% of their deceased fed employee's pension.

I retired 10 years ago from the federal government at age 56. I have a pension of $111K. Although my pension has not increased for this year and won't next year, it is still a cadillac of a pension plan. The USG also pays 70% of my health care insurance or close to 10K a year. Federal employee compensation and benefits have gotten out of hand. There is going to be blowback from the public. It is inevitable.

137 posted on 11/29/2010 8:12:54 PM PST by kabar
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To: arrogantsob
The FERS Basic Benefit Plan pays more than SS in terms of pension benefits. FERS Computation
138 posted on 11/29/2010 8:22:09 PM PST by kabar
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To: arrogantsob
I disagree.

Congress has unlimited power when it comes to all things involving money, they and they alone have the constitutional power of the purse.

If they can void 200+ years of contract law to bail out GM and screw the bond holders they can cut the benefits of federal workers.

139 posted on 11/29/2010 8:22:17 PM PST by TexasFreeper2009 (Obama = Epic Fail)
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To: Soothesayer; All

Well, from what I heard it won’t be those higher paid newly elected Congresspeople, because, while I didn’t see it in the NYT article, apparently Congresspeople will not be frozen for two years. I wonder if the new Republicans and Tea Party electees will call for a freeze on Congressional pay? I, as a lowly Social Security recipient, have already been frozen for two years. I wonder what they plan for next year.

As a small stockholder, we also need to press the CEO’s of our corporations to freeze or cut back their often highly inflated salaries and bonuses and stop sending jobs to cheap labor foreign countries so they can overpay themselves. For example, the top 7 executives of GE were paid from $11 to $22 million for 2007, 8, and 9. At the same time the stock was tanking from $50 a share to as low as $5 a share, and is now stagnant between $15 and $20. Did they cut their pay, oh, no!! Did they want us stockholders to approve a Proposal for a Stockholders Advisory Vote on Executive Compensation, oh, no!! They said, “vote against this piece of stockholder democracy”. Did I listen to them, oh, no!! I want to have a say in what these clowns are doing to my company.


140 posted on 11/29/2010 9:51:02 PM PST by gleeaikin
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To: skookum55; All

My Social Security COLA has already been frozen the last two years. My late husband’s teacher’s pension has been frozen for one year.


141 posted on 11/29/2010 9:54:07 PM PST by gleeaikin
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To: skookum55; All

What is your source for private sector increase of only 8%? I have been following “Forbes CEO Compensation” for a few years, and perhaps they have been doing that to their low level workers, but sure as heck not to themselves!! Of course if you include minimum wage jobs which had NO increase for years you may be right.


142 posted on 11/29/2010 10:03:53 PM PST by gleeaikin
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To: hoyt-clagwell

I don’t know what you are talking about either. And I suspect, neither do you.

Fed bennies suck compared to large companies in private sector.

If you happen to work for a small business that doesn’t provide benefits, that’s your choice.


143 posted on 11/30/2010 4:44:26 AM PST by mom4melody
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To: The Big Boo

Exactly.

I work for the V.A. Just now they are looking at telework.

I worked remotely 15 years ago in private sector.


144 posted on 11/30/2010 4:47:45 AM PST by mom4melody
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To: OldGoatCPO

The “they” I am referring to are those who are making nearly double what their private sector counterparts are making.

I don’t know how it would be implemented, but it’s those union members who have had their pays increased approximately 34% over the past few years (I think that’s what I heard).

If your country is anything like mine, MANY of the government workers are not necessary - it’s pretty much a joke up here.

On the other hand, I have a good friend who works VERY hard for the federal government and is paid along the same lines as the private sector. He is an honourable, ethical accountant - he deserves to be compensated accordingly.


145 posted on 11/30/2010 6:53:25 AM PST by JudyinCanada
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To: JudyinCanada

Grossly overpaid? Jesus woman, how’s that free health care in Canada working out for you? Stay out of affairs you don’t understand. The private sector is full of cheap cost-cutting hypocrites, who expect their employees to work harder for less, and offer more expensive, yet crappy benefits to boot. You really need to remove your head from your hind end, Canuk!


146 posted on 11/30/2010 8:24:27 AM PST by jbospunk
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To: scbison

wrong, the low wage employees are not contractors, they are fed employees just like the GS community. More of the low wage jobs will eventually go contractor because of the pay freeze.


147 posted on 11/30/2010 9:42:54 AM PST by OldGoatCPO
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To: gleeaikin

“My Social Security COLA has already been frozen the last two years. My late husband’s teacher’s pension has been frozen for one year.”

Nice of Obama to try to finance his socialist dreams on the backs of retired folks.


148 posted on 11/30/2010 10:40:39 AM PST by skookum55 ("We can give up on America or we can give up on this president ...." D. D'Souza)
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To: gleeaikin

My source is the NY Times article posted. I just tried to revisit it, but one now has to log in. I swear the entire article was available at the time I posted. The article, as I recall, gave annual compensation rates of increase for the past decade — I merely multiplied them to determine the net increases over the 10-year period.

CEO compensation, while hefty, is insignificant in terms of national averages.

I must admit that I don’t know whether the Times reported real rates of increase (i.e., rates adjusted for inflation) or raw rates — they didn’t specify. It doesn’t matter for purposes of comparing private and public sectors, but it might for purpose of generating numbers that are familiar to you.


149 posted on 11/30/2010 10:47:35 AM PST by skookum55 ("We can give up on America or we can give up on this president ...." D. D'Souza)
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To: OldGoatCPO

My agency did alot contracting out of lower wage positions during Bush (A76 review).


150 posted on 11/30/2010 11:27:35 AM PST by scbison
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