Diluting pay raises
By Mike Causey | @mcauseyWFED
November 10, 2015 1:00 am
Good pay vibes for federal workers in Burlington, Vermont and the Virginia Beach-Norfolk area. Not so good news for government workers in D.C.-Baltimore , New York, L.A.-San Francisco, Houston and two dozen other cities that have their own, higher, locality pay scales.
The Federal Salary Council last week voted to allow the Vermont and Virginia cities to setup their own locality pay zone. Congress has the final say on whether they will be allowed to set up their own locality pay areas in 2017 or will remain in the lower-wage RUS (rest of U.S.) locality area.
In January, the locality pay system will get 13 new or expanded zones that will move 103,000 feds into the better-paying locality areas.
Many lucky federal workers on Maryland's Eastern Shore will join the higher-paying Washington-Baltimore locality system. Feds in Lancaster, Pennsylvania, will move into the Harrisburg locality zone. The 2016 and 2017 changes, if approved, could mean slightly higher pay raises in future for those employees.
But there is a downside to expanding locality areas and moving more people into existing locality areas. An internal OPM report noted that "if a percent of the total GS payroll is allocated for locality pay increases, the addition to new areas could result in a smaller amount to allocate for locality pay increases in existing areas." Bottom line, OPM said, is that the 13 newly approved areas could "result in relatively lower pay increases for employees in existing locality pay area than they would otherwise receive."
Posted by: sarah_oz@yahoo.com
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