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[TSP_Strategy] More Fed Zombies Coming

 

More feds enter zombie land: Gloom at the top


By Mike Causey | @mcauseyWFED

November 4, 2015 1:00 am

 (Warning: The following column contains language that some people may find offensive. It is strongly suggested that anyone at GS-15 or higher level read it with caution. Side effects may include rage, nausea or depression. Seek immediate relief for a reaction that lasts more than 4 hours).

While not very big, the 2016 federal pay raise will, as always, be tricky. And a growing number of top-level civil servants will not get any or all of the 1 percent to 1.3 percent pay hike. Reason:

Unless some changes are made, soon, the pay cap for GS (general schedule) white-collar feds remains at $158,700. That means that hundreds of GS 15 employees in the top steps of their grade will bump up against the pay ceiling and their paychecks will go up by little or nothing in January. In other words, more people in more places will join Team Zombie, the ranks of the frozen undead.

In some locality pay regions (Pittsburgh, Phoenix, Milwaukee, Raleigh-Durham, to name a few) all GS 15s will get the raise because nobody currently gets $158,700, even at the top (10th) step of the grade. In some cases, the top paid GS person in that area (assuming there are any) is at the $150,830 level.

In many federal enclaves, places like Houston, San Francisco, Baltimore-D.C. Los Angeles, New York City and Miami the raise will push some workers near the 10th step up against the ceiling. Although D.C. has the highest number of higher-grade employees, feds here are paid less than in some other places. In the Washington-Baltimore locality zone, GS 15 feds in steps 9 and 10 are limited by the $158,700 cap. But in higher locality pay areas, like San Francisco, the GS 15 cap is hit at the step 6 level.

It will probably be sometime in December, at the earliest, before the pay cap is dealt with. If it is. If nothing is done, which seems to be the way of the world when dealing with civil servants, more people will join the elite ranks of Team Zombie, the frozen, undead, underpaid GS 15s.


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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

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