The presidential panel has offered a second proposal to freeze the pay for federal employees, as well as to cut the workforce. The report, released December 1, adversely affects the majority of federal employees.

The plan will impose a three-year pay freeze on federal workers and Defense Department civilians, in addition to reducing the federal workforce through the means of attrition by 10 percent. This reduction of the federal workforce would also include Defense civilians. The report asks that a task force considers these changes, along with requests that federal retirement payments should be based on the five highest years of employee earning, rather than the highest three.

The report also calls for greater management authority for the US Postal Service, recommending reversing restrictions that prevent the Postal Service from shifting to five-day delivery and gradually closing down post offices no longer able to sustain a positive cash-flow.

Are you a government worker that is upset about the lack of pay raises in the coming years? Or do you agree that this rule is a necessary step to improving our nation’s economy?

The rapidly growing pay of federal workers has caught the attention of the fiscally conservative Republicans, who won the majority of last week’s elections for the U.S. House of Representatives.

A study performed by USA Today has found that the average federal salary has risen significantly over the last several years. The number of federal employees earning $150,000 and more has doubled, and salaries have increased tenfold since Obama moved into the Oval Office.

The USA Today analysis also revealed that the raises were prevalent government-wide, but thatlong-time workers have benefited most from pay increases. The salaries of federal employees working since 2005 have climbed 25 percent, in comparison to a nine percent inflation rate for short-term workers. Physicians within the federal workforce have also been rewarded. Medical professionals at veteran prisons and hospitals now earn an average of $179,500, as compared to $111,000 in 2005.

Rep. Jason Chaffetz, R-Utah, heads the panel which will analyze federal pay. Chaffetz says he wants a pay freeze and a 10 percent pay cut across the federal workforce.

“It’s stunning when you see what’s happened to federal compensation,” says Chaffetz. “Every metric show we’re heading in the wrong direction.”

Do you agree with Chaffetz? How is it that some people feel government workers are grossly overpaid, while other studies reveal them to be underpaid for their performance?

In February 2010, the White House proposed a General Schedule pay raise of 1.4 percent for federal civilian employees, effective in 2011. However, in April 2010, the Senate voted to freeze the pay for the members of Congress. They unanimously voted against the $1,600 pay raise that Congress members were scheduled to get the next year.

The federal pay freeze proposal was defeated on June 18 when the Senate rejected it due to the size of the workforce. The chamber also dismissed an amendment by Senator John Thune (R-SD) which was aimed at paying for a tax and jobs bill by dropping federal bonuses and the 2011 pay raise.

Senator Thune defended his proposed amendment, stating, “The alternative amendment I proposed was a common sense step toward restoring fiscal sanity to our nation’s runaway spending and ballooning deficit.” He further added that “the defeat of my amendment was a missed opportunity for Congress to prove they are serious about tackling our dangerous spending habits and $13 trillion national debt. This amendment would have lowered taxes for families and small businesses as they struggle through these challenging times.”

Senator Ted Kaufman (D-Del), argued that the Republicans were using incorrect information regarding federal pay and bonuses; he stated, “Over the years, as I’ve witnessed countless acts of personal courage, devotion to country and real sacrifice” by federal employees, but “I have also seen and heard such disheartening and baseless attacks against those who choose to serve. The pending amendment is just the latest assault”.

By Allan Schweyer

President Obama has so far held the line on civil servant salary increases. But is he making a mistake? Public opinion isn’t likely to go against the President on this one.

USA Today, GovCentral.com, Reuters and many others have recently reported that Federal Government compensation is already out of line with private sector pay across the country, some even suggest pay cuts to reduce the deficit.

Most articles fail to differentiate between a Federal civil service comprised mainly of college-educated, knowledge workers and a private sector workforce that is, on average, less educated and more blue-collar. On the other hand, few private sector organizations offer the range of benefits and job guarantees that civil servants are used to.

Are federal civil servants overpaid or overcompensated when all factors are considered? Are the comparisons to the private sector fair? This issue will be a hot one as the President and Congress seek ways to rein in spending and control massive deficits. It is also a potentially dangerous issue for civil servants, as they could be made scapegoats for a problem that Americans from all sectors of the economy helped to create.

Comments welcome, let’s hear your thoughts.