(Update 3/21/2013.   The Continuing Resolution to fund the federal government through end of FY13 extends the federal employee pay freeze through FY13).

Good News.

By Executive Order, the Federal Pay Freeze in effect since 2009 will be lifted on March 27th, 2013.

Most federal employees (including those on the General Schedule) will see a 0.5 percent increase in their top line.


What you’ll take home at the end of the day is still uncertain.  As mentioned here before, other items which could negate or even make 2013 a net loss in federal take home pay include:


  • Expiration of the Payroll  Tax.
  • Increase in your FERS contribution/salary withholding.
  • Increase in FEHB Premiums.
  • 50% cut in the Health Care Flex Spending Account under ObamaCare.

That said, even a token increase of 0.5% is a much-needed morale boost for federal employees.



Ok, you can if you want to, but it will cost you roughly $350 per year versus waiting until 2014 to retire.

Fedweek produced a somewhat tongue-in-cheek article calling the 2010 National Defense Authorization Act the ‘No FERS Employee Retires in 2013 Act’.

For those who recall, the 2010 NDAA restored sick leave parity between the FERS and CSRS systems, phasing in full sick leave credit for FERS participants in 2014.

Would you gut it out an additional year just for a $350 per year annuity check?  I don’t think so, but a FERS employees ‘on the fence’ in December of 2013 might wait until January of 2014 to retire.

We’ll have to wait and see.

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