Obama to announce pay freeze for federal workers

[Aaron Brachowitz]

Supposedly at 11:30 ET today. Why not a pay reduction? Are they going to go work somewhere else? But I'll take it.

[Browncoat]

Does that include Congress?

[Aaron Brachowitz]

Originally Posted by Browncoat

Does that include Congress?

It's probably not within his authority.

How 'bout a hiring freeze or a 10% RIF? I suppose the new Congress could make it academic.

[Rickson]

freeze wages at an all time high!

perfect timing if you are an employee of the gov't.

JSAs get no jobs, you get peak earning!

[Aaron Brachowitz]

http://www.cnbc.com/id/40416771

President Barack Obama will announce a two-year pay freeze for federal employees that the White House says is necessary to put the country on sound fiscal footing.

The White House said Monday that the freeze would apply to all civilian federal employees, including those working at the Department of Defense, but would not affect military personnel.

The freeze will save $2 billion during fiscal year 2011, according to the White House.

We'll probably find out they gave out $4 billion in "retention bonuses"

[remilard]

Originally Posted by Aaron Brachowitz

Supposedly at 11:30 ET today. Why not a pay reduction? Are they going to go work somewhere else? But I'll take it.

+1, cut 2% a year until they all start leaving for the private sector and then go back up 2%. That is your equilibrium.

[nonlnear]

Originally Posted by remilard

+1, cut 2% a year until they all start leaving for the private sector and then go back up 2%. That is your equilibrium.

That is your equilibrium if every federal employee's tipping point is at the exact same level of proportional pay cut.

And why would that even be your goal in the first place? That only makes sense if you actually want to retain the current number of government employees.

[FormLetter]

Saving $2B in fiscal year 2011, based on 3,000,000 federal employees is
2*10^9 / 3 * 10^6 = $667 per employee for the 2011 fiscal year.

If that would have been a 3% increase otherwise, that implies and average salary of $667 / 0.03 = $22,222. 1% implies $66,667.

[Aaron Brachowitz]

Originally Posted by FormLetter

Saving $2B in fiscal year 2011, based on 3,000,000 federal employees is
2*10^9 / 3 * 10^6 = $667 per employee for the 2011 fiscal year.

If that would have been a 3% increase otherwise, that implies and average salary of $667 / 0.03 = $22,222. 1% implies $66,667.

You have to net out active duty military -- probably around 1,000,000 or so. That gets you to $1000 per head.

[WellThen]

Rich get richer, poor get poorer. SSDD.