Obama’s Budget for Fiscal Year 2013 Released

On Monday, the White House released President Barack Obama’s 2013 Fiscal Year budget request. The request included a pay raise for civilian federal employees but increased federal workers’ retirement contributions.

Obama’s request would end the current civilian federal pay freeze by increasing civilian federal employees’ pay by 0.5 percent. Obama also proposed a 1.2 percent increase in retirement contributions, spread out in 0.4 percent increments over a three year period. The increase would save $27 billion over the next ten years, the Obama administration estimated.

“[I]n light of the fiscal constraints we are under, the Administration is proposing a 0.5 percent increase in civilian pay for 2013,” the administration wrote in the budget. “Compared to the baseline, this slight increase in civilian pay would free up $2 billion in 2013 and $28 billion over 10 years to fund programs and services and is one of the measures the Administration proposes to help meet the discretionary caps.”

The budget also included a proposal to eliminate the Federal Employees Retirement System (FERS) Annuity Supplement for new employees.

“Overall, these changes are not expected to have a negative impact on the Administration’s ability to manage its human resources, nor inhibit the Government’s ability to serve the American people,” the administration wrote in the budget proposal.

The request also calls for federal personnel policy reform by establishing a Commission on Federal Public Service Reform. The Commission would be comprised of Congressional members, representatives from the Labor-Management Council, members of the private sector and academic experts, the administration wrote. The Commission would work to modernize federal personnel policies and practices, including federal pay and personnel performance and motivation.

Posted in General News

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