Federal Civilian and Military Pay Increases Message to the Congress Transmitting the Federal Pay Comparability Alternative Plan.

To the Congress of the United States:

Under the Pay Comparability Act of 1970, an adjustment in Federal white collar pay will be required on October 1, 1979.

I have reviewed the report of my Pay Agent and recommendations of the Advisory Committee on Federal Pay relative to a pay adjustment. Their findings indicate that an average 10.41 percent increase, at a cost of about $6 billion, would be required to achieve full comparability with the private sector.

However, pay comparability for Federal civilian employees and the military must be viewed in the light of the current economic situation. Inflation continues to be the single greatest threat to our economy and is a national problem of foremost concern. In considering last year's Federal pay increase, I relied heavily on the pay standards the Administration was considering to guide decisions of all employers in determining pay increases. I am continuing that practice for this year's increase.

Accordingly, under the authority given to me by the Pay Act to propose an alternative pay adjustment which I consider appropriate in the light of "economic conditions affecting the general welfare," I have determined that an alternative plan consisting of an overall 7 percent increase and a partial exemption from the full effect of the limitation for the lowest-salaried civilian employees is appropriate for the Federal increase. This increase will be within the pay standard being developed by the Council on Wage and Price Stability that will apply to all employees in the country for 1980. It is somewhat higher than the increase anticipated by my 1980 budget. However, last January when my budget was submitted, we expected significantly lower rates of inflation than we have actually experienced. I believe that the loyal and outstanding service given to the country by the Government's civilian and military personnel warrants recognition of that changed circumstance and of the new pay standards for 1980.

Accordingly, I strongly urge the Congress to support the alternative plan which is attached.

JIMMY CARTER

The White House,

August 31, 1979.

FEDERAL PAY COMPARABILITY ALTERNATIVE PLAN

Because of economic conditions affecting the general welfare, I hereby transmit to Congress the following alternative plan, in accordance with 5 U.S.C. 5305(c) (1): The adjustment in rates of pay of each Federal statutory pay system to become effective on the first day of the first applicable pay period that begins on or after October 1, 1979, shall be limited to a 7 percent increase at each grade in lieu of the adjustment determined under the comparability procedure set forth in 5 U.S.C. 5305(a)-(b); Provided, however, that the full adjustment determined under the comparability procedure shall take effect to the extent it does not increase any rate of pay to an amount of more than $8,902 per year.

In accordance with 5 U.S.C. 5382 (c), and subject to any applicable statutory restrictions on the availability of appropriated funds, the following rates of basic pay for the Senior Executive Service shall become effective on the first day of the first applicable pay period that begins on or after October 1, 1979:

ES-1 ..................$47, 889

ES-2 ..................49, 499

ES-3 ..................51,164

ES-4 ..................52, 884

ES-5 ..................54, 662

ES-6 ..................56, 500