Trump Proposes 1 Percent Pay Raise for Civilian Government Workers

Trump Proposes 1% Pay Increase for Civilian Federal Workers in 2021. The proposal marks an improvement over last year’s initial pay freeze request, but a significant downgrade from the average 3.1% pay increase that was ultimately enacted for 2020.

NTD Newsroom

Published: 2/11/2020, 5:03:26 PM EST

Trump Proposes 1 Percent Pay Raise for Civilian Government Workers — President Donald Trump speaks at the 68th annual National Prayer Breakfast in Washington, on Feb. 6, 2020. (Nicholas Kamm/AFP via Getty Images)

President Trump requested a 1 percent pay raise for federal workers for 2021.

The proposal is part of the annual budget request (pdf) the White House has issued and comes along an array of proposed measures to cut down on government spending while trying to stay in line with trends in the private sector.

With the suggested salary raise of 1 percentage point, the White House seems to be one step on its way to finding a compromise between the zero percent that it has proposed in previous years and the increases of 1.9 percent and 3.1 percent that were enacted by Congress for 2019 and 2020, respectively.

It also falls short of the 3.5 percent raise as proposed by the House (pdf) in January and is lower than the 3 percent raise envisaged for the military for next year.

"This alternative pay plan decision will not materially affect our ability to attract and retain a well‑qualified Federal workforce," Trump said. "[O]ur pay system must reform to align with mission-critical recruitment and retention goals, and to reward employees whose performance provides value for the American people."

"This increase in awards spending will allow agencies to effect an awards and recognition program that drives positive behavior, provides opportunities for employees to develop, grow and enhance their careers and recognizes accomplishments in a timely way," the President's 2021 budget request further reads. "The increase also ensures that agencies have sufficient funding to differentiate among levels of performance and maintain an appropriate distribution between performance awards and individual contribution awards."

However, not everyone applauded the latest proposals.

"At a time when the federal government faces ominous recruitment and retention challenges, the president's [fiscal year 2021] budget continues to shortchange and renege on previous commitments to federal employees and retirees," president of the National Active and Retired Federal Employees Association, Ken Thomas, The Hill reported. "These contemptible recommendations do nothing more than undermine the strength of our resilient civil service, and I urge Congress to reject it outright."

The 2021 Budget Request further includes:

A 0.5 percent cut to the Cost-of-Living Adjustments for Civil Service Retirement System participants.
An increase in federal employee contributions to the Federal Employee Retirement System of 1 percent each year.
The cost-of-living adjustment for current and future retirees will be eliminated.
Future retirement benefits to be based on the average of an employee's highest five years of salary instead of an employee's top three years of salary.
Annulment of Federal Employees Retirement System (FERS) Special Retirement Supplement payments for employees who retire before age 62.

However, chances are slim that Trump's proposals will be ratified by Congress, and it may come up with its own legislation as it did the past two years. The President also can alter his alternative pay plan as late as August when Congress decides on the new rates under the Federal Employee Pay Comparability Act.