MakeMe$$$$ wrote:BigMike wrote:...
We aren't talking here about fighting for Federal employees to get bonuses or raises here we are only talking about getting a small cost of living increase that keeps them caught up with inflation. By denying them a cost of living raise it is in reality a pay cut!
Not only is it a pay freeze but the chain it creates is reduction in retirement because of delayed pay increase. For some close to retirement it creates a de facto high 4-5. For those a long way off, cost of living raises probably will not make up the difference between freeze and non-freeze models.
I have never seen them take any action aimed at catching up previously withheld cost of living increases.
While thinking about this looming withhold of cost of living I was reminded of what they did some years ago to FERS employees as it relates to cost of living increases for FERS retirees. CSRS retirees receive cost of living adjustments to their retired pay each year tied to the Consumer Price Index. That is as it should be. FERS retirees also receive a similar cost of living adjustment each year. However, in the case of the FERS retirees the cost of living adjustment is 1% less than the calculated amount that should be given.
I have never found any good rationale for why this was instituted other than for the government to save money on the backs of FERS retirees.
This reduction each year is relatively small in the first year or so. But once again the compounding effect of repeatedly withholding FERS retiree cost of living increases even as minimally as 1% year after year seriously diminishes the true value of the annuity very quickly. Once again there are no provisions of ever getting caught up or "correcting" this targeted draconian policy.