Freeze on Locality Pay


12/3/2010:  As you know, on Monday the President proposed a federal employee pay freeze for 2011 and 2012. In keeping with that position, the President has now exercised his statutory authority under the Federal Employees Pay Comparability Act of 1990 (FEPCA) to submit an alternative plan on locality pay. The President’s plan effectively freezes locality pay at the 2010 levels as well, meaning that the portion of your pay that is allotted for locality pay at the present time will not change.

This action was not unexpected but was also disappointing. NTEU is working with our contacts on Capitol Hill to see what we can do on the overall pay issue. Under current law, unless Congress acts to the contrary, a .9 percent basic pay raise is scheduled to go into effect in January under FEPCA.  The administration originally proposed a 1.4 percent increase, which presumed a .5 percent locality adjustment.  NTEU continues to support that level.