Federal employees' pay is governed by the comparability principle. This is a concept designed to insure employees and the Nation's other taxpayers that pay is equitable and comparable with pay in the private sector. There are problems with the comparability system, and reform is needed. The roles of the parties involved in the system and the problems that proposed legislation will not correct were discussed.
Matter for Congressional Consideration
|Congress should amend the law to further limit the President's use of alternative plans to ensure they will be used in situations which are more indicative of national emergency or economic conditions affecting the general welfare.||The recommendation is no longer valid. Pay limitations on the annual pay adjustments have created a situation where Federal pay levels are about 20 percet behind their private sector counterparts, making a return to that process non-feasible and alternative plans the only viable option.|