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

To the Congress of the United States:

An adjustment in Federal white collar pay is required on October 1 under the Pay Comparability Act of 1970.

As specified in that Act, my Pay Agent and the statutory Advisory Committee on Federal Pay have made their report to me on comparability findings for the next fiscal year.

Current law provides that the annual increase for the military be the same as the average of the civilian increase. The Department of Defense Authorization Act, 1981, which has passed both Houses of Congress provides for a larger military pay adjustment this year. The larger increases proposed under that Act will supersede the increases military personnel otherwise would receive under the Alternative Plan.

A decision on pay comparability for Federal civilian employees necessarily must be made in the broader context of the present economic situation in this country. Inflation is a continuing threat to the economy, and consequently we still have anti-inflationary pay standards for all pay increases, public or private. For the past two years, I have looked to those standards in determining the Federal pay adjustment just as I expected other employers to do in formulating increases for their workers. I have continued that approach for this year's Federal increase.

The Pay Act gives me authority to propose an alternative adjustment to full comparability if deemed appropriate in light of economic conditions. Under that authority, I have decided upon an alternative pay plan consisting of an across-the-board 9.1 percent increase, and a partial exemption from the full effect of that limitation for the lowest paid civilian employees. That increase is fully within the range of the current national pay standards.

A President must balance economic considerations against the fact that Federal employees face the same kinds of problems with inflation as other citizens. In so doing, I have concluded that the dedication of these loyal public servants deserves no less relief than we would allow for other workers.

For those reasons, I urge the Congress to support the Alternative Plan submitted with this message.

JIMMY CARTER

The White House,

August 29, 1980.

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 l, 1980, shall be limited to a 9.1 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 $9,069 per year.

Accordingly, the overall percentage of the adjustment in the rates of pay under the General Schedule will be a 9.12 percent increase. The overall percentage of the adjustment in the rates of pay under the other statutory pay systems (Foreign Service and the Department of Medicine and Surgery of the Veterans Administration) will be slightly less, a 9.1 percent increase, because all salaries under those systems are higher than the $9,069 per year limit which would permit comparability increases.

In accordance with 5 U.S.C. 5382(c) 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, 1980:

ES-1 49,198

ES-2 51,461

ES-3 53,827

ES-4 56,303

ES-5 58,892

ES-6 61,600