To remove cost-of-living adjustments and locality adjustment payments from the calculation of certain limits on the pay of Federal employees, and for other purposes.
About This Bill
Committee
Latest Action · August 8, 2023
Referred to the Committee on Oversight and Accountability, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
This bill addresses a long-standing problem called "pay compression" that affects federal employees. Pay compression occurs when the gap between a new employee's starting salary and a more experienced employee's salary becomes too small, which can happen when salary caps prevent experienced workers from receiving full cost-of-living and locality adjustments. The legislation directs federal agencies to exclude cost-of-living adjustments and locality-based pay adjustments from any federal pay limits or caps when determining if an employee has reached their maximum allowable salary. This change applies to civilian federal employees, military personnel, and other federal positions covered by various pay authorities. The bill also requires the Treasury Department to reimburse the Civil Service Retirement and Disability Fund for any increased pension costs resulting from these changes, though no specific dollar amount or implementation timeline is included in the text.
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