by MattS » Sat 12 Dec 2009, 00:08:40
$this->bbcode_second_pass_quote('Plantagenet', 'M')ish is right.
The basic reason why federal employee pay is growing so much more rapidly then private sector pay is that federal employees get TWO raises each year, rather then one.
In contrast, Obama has decreed a 2% raise for all federal employees. In addition, although it might seem a bit piggy especially now when there are record unemployment and poverty rates in the US, all federal employees automatically get a SECOND raise of 1.5%, called a "step" increase, making the total raise for this year 3.5%.
Every single year they get a raise and then a second STEP increase raise. Since federal employees get these two raises each year, federal pay has progressively risen faster then private sector wages to where it now far outstrips private sector pay.
Step increases function for 3 consecutive years only. The next 3 step increases function once every TWO years. The next 3 step increases function once every THREE years.
So no, they don't happen every single year.
A typical Federal employee can run their entire step increase scale, from 1 to 10, in approximately ( 3 + 6 + 9 = 18 ) years...give or take.
So someone starting out at a princely sum of, say, $50G's a year can look forward to making $70G's after 18 years....to never make any more again because he/she is locked into their pay grade. If they started working at age 22 upon graduation from college, they hit 40 and are effectively done, hoping that the 2% cost of living increase ( which isn't a given...I seem to recall that Ronnie didn't like them ) will allow them to catch up to their private industry counterparts.
An amusing concept really....I once received a raise in one shot of nearly the size of what these people can expect only after 20 years of service....plus their retirement nowadays sucks. The FERS system actually requires them to save their own money...just like everyone else.