BREAKING (updated): Senate Also Passes Federal Pay Cuts

Senate Agrees with House GOP Budget Budget To Cut Take Home Pay of Current Federal Employees 5 Percent

In a unified budget attempt, on March 27, 2015, Senate Republicans also passed massive pay cuts affecting ALL CURRENT AND FUTURE FEDERAL EMPLOYEES. GoveExec.com confirms this budget would result in a 5% pay cut for all current and future federal employees. The  Senate plan also proposed “changes” to the Federal Employee Health Benefits plan (FEHB).  We previously reported that even more aggressive pay cuts were passed by the House GOP.

The Senate version of the unified budget is expected to be reconciled through conference committee and a final resolution by mid-April.  Pay cuts could be effective as early as the start of next fiscal year.  It is important to remember federal pay cuts contained in both the House and Senate versions of the federal budget are not all inclusive. There are various additional cuts contained in other Republican legislation that could compound net adverse effects on federal pay even more.  Some of our consultants estimate possible real pay cuts of up to 20% factoring in all aspects of adverse pending legislation affecting federal pay. There is no legislation pending that would, in any way, offset these losses and such losses are permanent and accumulating as your career progresses.

On a side note, we estimate passage of such unprecedented pay cuts could yield a financial death blow to federal unions such as AFGE and NTEU as members begin canceling union dues allocations in response to pay cuts. As we opined time and time again, the core responsibility of any labor organization is to protect pay and benefits.  If a union cannot maintain that core responsibility, its very purpose and legitimacy is called into question.

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