Why more federal employees and retirees are protecting their retirement savings using this overlooked, IRS-approved program
Senator Brian Schatz (D-HI) and Representative Gerry Connolly (D-VA) reintroduced the Federal Adjustment of Income Rates (FAIR) Act, a bill that would provide federal employees with a 2024 pay raise of 8.7 percent.
If passed, the legislation would provide a base pay raise of 4.7% plus a 4% average locality pay increase.
The lawmakers believe the FAIR Act “restores years of lost wage increases for federal employees by ensuring that federal employees, who serve in all 50 states on behalf of constituents in every congressional district.”
Last year, a similar bill proposed that the 2023 federal pay raise be 5.1%. The final pay raise for 2023 was 4.6%.
“For years now, federal employees have risked their health and safety working on the frontlines of this pandemic,” said Connolly. “The FAIR Act is a critical step toward recognizing their contributions and providing fair and just compensation.”
“Whether inspecting our food, conducting medical research, or caring for our veterans, federal workers play an important role in our everyday lives and deserve pay which reflects that,” said Schatz. “After years of pay freezes, our bill gives these dedicated public servants a much-deserved raise.”
Federal Employee Groups Endorse the FAIR Act
“The FAIR Act proposes a strong pay raise to counteract a tightening labor market and increasing private-sector pay, rising costs of living and an impending federal retirement wave,” said William Shackelford, National President, National Active and Retired Federal Employees Association (NARFE). “A strong pay increase in 2023 is critical to the recruitment and retention of an effective federal workforce, and we’re thankful to have Congressman Connolly’s support for this effort.”
“Sen. Schatz and Rep. Connolly are exceptional advocates for our federal workforce because they understand how important it is that our nation’s civil servants are paid a fair wage,” said Tony Reardon, National President, National Treasury Employees Union (NTEU). “The average 8.7 percent average raise they are proposing for 2024 will help federal employees keep up with rising costs, and help agencies recruit and retain the workers we need to keep the country running. The FAIR Act, as always, represents a thoughtful, analytical approach to federal pay levels, which is why NTEU strongly supports this legislation.”
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“The latest report of the Federal Salary Council shows that federal worker pay lags behind the private sector by over 23 percent – making it difficult for agencies to recruit, hire, and retain top talent and hurting the quality of services Americans receive,” said Everett Kelley, National President, American Federation of Government Employees (AFGE). “The 8.7% pay increase included in the FAIR Act will not only reward federal employees’ hard work and help them keep pace with inflation, but it will also help government agencies remain competitive and deliver high-quality services to the American public. We wholeheartedly endorse this bill.”