Obama Reduces Pay Increase for Federal Employees

[charlydevo]

Obama Reduces Pay Increase for Federal Employees
Obama Reduces Pay Increase for Federal Employees - Political News - FOXNews.com

Civilian federal employees won't get as big a pay raise as expected next year, President Obama announced Monday.

In a letter to House Speaker Nancy Pelosi, Obama said he has decided -- in light of the economic crisis -- that civilian federal employees should receive a 2 percent pay increase starting Jan. 1, 2010, instead of the 2.4 percent across-the-board increase that was expected.

Combined with other local pay raises, the White House estimated the total cost to be $22.6 billion in fiscal year 2010 alone. Obama said such an increase is not appropriate.

"With unemployment at 9.5 percent in June to cite just one economic indicator, few would disagree that our country is facing serious economic conditions affecting the general welfare," Obama wrote. "The growth in federal requirements is straining the federal budget."

U.S. Code grants the president the authority to submit an alternative pay plan if he "views the adjustments that would otherwise take effect as inappropriate due to 'national emergency or serious economic conditions affecting the general welfare.'"

Obama said that if necessary, he will also provide an alternative plan for the locality pay rates by Nov. 30.

[Kimble]

For GS fed employees, at least you get 2%. Those of us under NSPS (the majority of DoD civilian employees) get 60% of the 2% the rest of the gov't gets. But, when I worked in the private sector, I went 2 years without any pay raise due to budget constraints, so it can always be worse.

[Clint]

I won't say what I'm thinking!!!!!! But I'm sure you can guess......

[charlydevo]

You're absolutely right, ROS. But, I like to complain anyway.

[Motorolanut]

I will bite my tongue as well for now....:mad:

[Maverick24]

For GS fed employees, at least you get 2%. Those of us under NSPS (the majority of DoD civilian employees) get 60% of the 2% the rest of the gov't gets. But, when I worked in the private sector, I went 2 years without any pay raise due to budget constraints, so it can always be worse.

Well said ROS. I actually expected them to give us nothing this year, so 2% isnt bad compared to most other situations out there. I'll take it.

[schoromanski]

hmmm...

Anyone familiar with what Obama signed a few weeks ago concerning student loan repayment? If i can remember correctly if you serve 10 years in the federal service your student loans are forgiven?

[GoDirectly2Jail]

As a member of the VAST MAJORITY getting the big goose egg this year (and likely next year), may I be the first to say - don't look a gift horse... :rolleyes:

[Kimble]

As a member of the VAST MAJORITY getting the big goose egg this year (and likely next year), may I be the first to say - don't look a gift horse... :rolleyes:

I hear you. I look at the situation with the first department I worked for and thank God I even have a job: Jefferson County sheriff asks Alabama governor to pay deputies or send in National Guard - al.com

[SemperFiVet]

Well in order to start saving money for the Federal coffers, might I suggest we being by ceasing to stamp coins that cost more to produce than they are actually worth! :D

In this economy, getting a 2% is still better than a lot who are getting nothing or worst yet, forced to take a pay cut. But still, listening to Obama preaching fiscal frugality is like Geithner or Rangel advocating for stiff penalties for failing to pay your income taxes, as they sit on the top spot in the IRS via the Treasury and the chief tax-writing committee of the United States House of Representatives.

I'm just glad Obama hasn't initiated a Federal hiring freeze like Reagan did when he came into office; just waiting for Oct. 1 budget renewal (settle even for a continuing resolution) for an EOD myself.

[Nole795]

I'm just happy I am employed

[BP348]

hmmm...

Anyone familiar with what Obama signed a few weeks ago concerning student loan repayment? If i can remember correctly if you serve 10 years in the federal service your student loans are forgiven?

Any truth to this?

[SemperFiVet]

Any truth to this?

I believe they are referring to this new Federal program. Do the math, maybe it will make sense for you but I think it only works out if you don't make much to begin with and never get a raise for the entire ten years. The Federal Student Loan Repayment Program is still much better if you can get it.

Go to ibrinfo.org

[Joeyd6]

Anyone familiar with what Obama signed a few weeks ago concerning student loan repayment? If i can remember correctly if you serve 10 years in the federal service your student loans are forgiven?

Any truth to this?

The Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in public service jobs.

There is truth, but you have a long time to wait and need to jump through some hoops. Plus the plan is a joke!

I make the following statements to LEO's only, working full-time, which is required to have your loans forgiven. It also assumes you graduated from a school with "reasobale student loans." We tend not to see to many cops who went to Havard or Yale for an undergad degree and now want to work for Timbuktu Police Department in the mid-west that pays $20 an hour. I am considering your average kid at a State College for 4 years around $100,000K before any grants/scholarships/mom& dad money, etc...

The "new law" covers:

Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)
Federal Direct Unsubsidized Stafford / Ford Loans (Direct Unsubsidized Loans)
Federal Direct PLUS Loans (Direct PLUS Loans)- for parents and graduate or professional students
Federal Direct Consolidation Loans (Direct Consolidation Loans)

And if you have a qualifying loan, then you must also make 120 payments (10 years worth) under one of the following payment plans beginning after October 1, 2007:

• Income Based Repayment (IBR) Plan (not available to parent Direct PLUS Loan borrowers)
• Income Contingent Repayment Plan (not available to parent Direct PLUS Loan borrowers)
• Standard Repayment Plan with a 10-year repayment period
• Any other Direct Loan Program repayment plan, but only payments that are at least equal to the monthly payment amount that would have been required under the Standard Repayment Plan with a 10-year repayment period may be counted toward the required 120 payments.

So lets figure out why this is a joke.
1) Unless you make 120 payments after 10/1/2007, you can't get a dime of the money. That mean if you were paying on 10/1/2007, as of 10/1/2017, whaever balance left would be "forgiven." That takes out a large percent of people out of the pool.


2) First, you can only get the IBR plan if the payment amount is LESS than the payment amount under the 10 year plan. Even then the IBR plan is great for year 1 or 2 out of college, when you make peanuts, but after that, when you get your first real job, you get hit hard. A person who makes $50K a year unmarried pays $484 a month, $414 a month if married, and $344 as month with 1 kid. Additionally, due to payment plan being dragged out for years, you pay MORE INTEREST!

So years 1-10, they make pure cash off you, then the bank gets to write off the principal balance on the taxpayers after collecting 10 years of interest. Plus each year they get your taxes and look at the GROSS amount and change your plan accordingly. So as you make more, say $65,000 with OT, you get hit with $609 if single, $539 if married and $464 if you have a kid. Figure 10 years x $400 a month = you paid $48,000 back on a loan which is mostly interest because the loan is based on a 25 year pay back plan, and then the lender get $48,000 in profit for a 10 year loan, and gets a tax break for writing off the remaining balance from the feds!

3) Income Contingent Repayment Plan: Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans, capped at 20% of your adjusted income. So lets just say you are singel and have a AIGI of $45K and have $30K in student loans, your payment is around $345 for 10 years! Guess what it is if you arried with the same adjusted income your and your wife who is probably working: THE SAME $345! Have a kid and wonder what your payment is at $45K adjusted gross income will get your student loan payment down to: $345 a month!

Thus, your loan is paid off in TEN YEARS!!! Meaning, when eleigible for the Forgiveness Program, YOU WILL HAVE NOTHING LEFT TO HAVE FORGIVEN! This plan puts all loans under $30,000 on ten year payment plan. What full time cop in America with wife does not have a adjusted gross income of $45,000? I bet not many.

4) Standard Repayment Plan with a 10-year repayment period. Well if you are under the standard payment plan, that means you have 10 years of equal payments. So if you have to make 10 years of payments (at which time the balance is wiped clean), you actually will have no balance to wipe clean!

5) As for the "...any other plan..." thing, its all the same BS. The only plan left is for those of us who had student loans we were paying on prior to 2007 when this took effect. Well guess what? All student loans prior to 2006 had 10 or 20 year payment terms! So if you had a 10 year payment term, You would not fit in the time guidlines of having to make 120 payments after 10/1/2007. And if you had a 20 year payment plan, you just might be in luck, slightly. Those who graduated 1998 to 2006, who have 20 year repayment plans, will get some of their balance "forgiven." But since they need 10 years of payements, they will get very little of teh original amount forgiven.
1997-1 year of payments forgiven
1998-2 years of payments forgiven
1999-3 years
2000-4 years
2001-5 years
2002-6 years
2003-7 years
2004-8 years
2005-9 years
2006-screwed...new payment plans took effect as listed way above.


In general, few if any LEO's will benefit after you look at the restrictions. And oh, did I mention that "forgiven" balances will be taxed in the year forgiven as income? So you end up getting hit on the back side paying taxes.

[BP348]

The Federal Student Loan Repayment Program is still much better if you can get it.

CBP has a student loan repayment program but it's never been funded nor are there plans to fund it in the future :rolleyes:

A few days ago when I made my student loan payment I was down to around $3300 (From somewhere near $4200) so I guess I'm SOL for the plan.

Joey,

Great explanation, What a joke!!