Committee Fails to Include Explicit Pay Raise in Appropriations Bill

MYTH: Pay raises for federal employees and cost-of-living adjustments (COLAs) for retirees are the same, both determined by Congress. REALITY: Annually, Congress must appropriate, or not, a pay adjustment for federal employees based on pay increases in the private-sector labor market. If Congress defers its authority, the president sets any pay adjustment. In contrast, yearly COLAs to federal annuities, veterans’ benefits and Social Security are automatically calculated using the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to keep pace with inflation. Neither Congress nor the president play a role in determining the amount of the annual COLA.

further developing and expanding cybersecurity initiatives to remain “hypervigilant” of future cyberattacks, following the 2015 OPM security breach.

She also emphasized the importance of addressing poor performers in government. Ahuja said that performance problems can be exacerbated by a lack of employee engagement and a “mismatch of skills and talents.” As director, she plans to orient OPM to better support and train managers to focus more on supervision and performance management guidance.

Ahuja testified that remote and telework options would be some of her top priorities if confirmed as OPM director. She noted that the entire country is rethinking the way we work as a result of the COVID-19 pandemic, and the federal government should, too.

Ahuja previously served as OPM chief of staff during the Obama administration and as the chief executive officer of Philanthropy Northwest, a nonprofit organization that promotes philanthropic efforts in the Pacific Northwest region of the United States.

—BY SETH ICKES, GRASSROOTS ASSISTANT

In late June, the House Committee on Appropriations advanced its fiscal year 2022 (FY 2022) Financial Services and General Government spending bill, setting the legislation up for consideration by the full House of Representatives. Notably, the bill did not include any language outlining a federal employee pay raise for calendar year 2022, effectively deferring the final decision on a raise to the president.

When congressional appropriators remain silent on a federal employee pay raise, the decision rests with the president. In May, President Biden proposed a 2.7 percent average federal pay raise in the administration’s FY 2022 budget proposal. To move the process forward, the president must submit an alternative pay plan to Congress by September

and, toward the end of the year, make the pay raise official through an executive order.

The implicit support for President Biden’s proposed 2.7 percent average pay increase improves federal employees’ chances of securing a meaningful raise to keep up with rising private-sector salaries. But it’s disappointing that House lawmakers failed to provide clear support for our nation’s public servants with explicit language in the appropriations bill.

NARFE has long believed that Congress should reaffirm its responsibility in appropriating federal pay increases. As elected representatives, it is imperative that lawmakers support market-based increases for public servants and protect federal employees from the uncertainty of bipartisan and bicameral negotiations.