For Immediate Release
Office of the Press Secretary
November 29, 2002
Text of a Letter from the President to the Speaker of the House of Representatives and the President of the Senate
November 27, 2002
Dear Mr. Speaker: (Dear Mr. President:)
I am transmitting an alternative plan for locality pay increases
payable to civilian Federal employees covered by the General Schedule
(GS) pay system in January 2003.
Under title 5, United States Code, civilian Federal employees
covered by the GS pay system would receive a two-part pay increase in
January 2003: (1) a 3.1 percent across-the-board increase in scheduled
GS rates of basic pay linked to the part of the Employment Cost Index
(ECI) that deals with changes in the wages and salaries of private
industry workers, and (2) a locality pay increase based on Bureau of
Labor Statistics' salary surveys. For Federal employees covered by the
locality pay system, the overall average pay increase would be about
18.6 percent.
For each part of the two-part pay increase, title 5, United States
Code, authorizes me to implement an alternative pay plan if I view the
adjustment that would otherwise take effect as inappropriate due to
"national emergency or serious economic conditions affecting the
general welfare." For the reasons described below, I have determined
that it would be appropriate to exercise my statutory alternative plan
authority to limit the locality pay portion of the January 2003 GS pay
increase.
A national emergency has existed since September 11, 2001. Full
statutory civilian pay increases in 2003 would interfere with our
Nation's ability to pursue the war on terrorism. They would cost about
$13.6 billion in 2003 alone -- $11.2 billion more than the 2.6 percent
overall Federal civilian pay increase I proposed in my 2003 Budget --
and would build in later years. Such cost increases would threaten our
efforts against terrorism or force deep cuts in discretionary spending
or Federal employment to stay within budget. Neither outcome is
acceptable. Therefore, I have determined that a total pay increase of
3.1 percent would be appropriate for GS employees in January 2003.
Because 5 U.S.C. 5303 already mandates an across-the-board GS pay
increase of 3.1 percent in January 2003, GS locality-based
comparability payments under 5 U.S.C. 5304 must remain at current
levels. While my Administration remains committed to the principle of
adjusting civilian Federal pay rates in keeping with changes in local
labor market rates, our national situation precludes granting larger
pay increases to GS employees at this time.
Accordingly, I have determined that:
(1) Under the authority of section 5303(a) of title 5, United
States
Code, the pay rates for each statutory pay system will be increased
by 3.1 percent, effective on the first day of the first applicable
pay period beginning on or after January 1, 2003; and
(2) Under the authority of section 5304a of title 5, United States
Code, locality-based comparability payments in the percentages set
forth in the attached table will remain in effect in 2003.
Finally, the law requires that I include in this report an
assessment of the impact of my decision on the Government's ability to
recruit and retain well-qualified employees. I do not believe this
decision will materially affect our ability to continue to attract and
retain a quality Federal workforce. Inflation, as measured by the
Consumer Price Index, is at 2.1 percent, well below the 3.1 percent
across-the-board pay increase already mandated by current law, and
Federal quit rates are at an all-time low of 2.1 percent per year, well
below the overall average quit rate in private enterprise. Should the
need arise, the Government has many compensation tools, such as
recruitment bonuses, retention allowances, and special salary rates, to
maintain the high-quality workforce that serves our Nation so very
well.
Sincerely,
GEORGE W. BUSH
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