Partial Federal Pay Freeze Only the First Step

James Sherk / November 29, 2010

President Obama just announced a partial two-year pay freeze for civilian federal workers.

Under the President’s plan, federal employees will not receive cost-of-living increases in their pay in 2011 and 2012. However, most federal employees will still receive seniority-based pay increases over the next two years.

The President’s decision is an important symbolic step. President Obama has brought federal pay closer to market rates—which is progress, considering that many liberals insist that federal workers do not get paid enough. However, a partial pay freeze does not fix the underlying problems distorting federal compensation. (more…)