The 2009 federal pay raise will be influenced by a number of factors. Here are some of the events that will influence the amount of next year’s average federal pay raise.
A few billion dollars were moved out of the TSP stock funds during the first quarter of this year. If you are a contrary investor, that may be a signal that stocks are headed up. And, for April at least, that is the case as all of the TSP funds are up for the month–with one exception.
Comments sent in by readers on proposed changes to interfund transfers within the TSP were unusually harsh. Similar comments may have been sent in directly to the TSP board as well. A new Federal Register notice finalizes a final rule limiting TSP trading activity. The official notice is blunt in addressing the comments opposing the changes. Here is the outcome but watch for future changes as well.
A recent notice in the Federal Register is the latest step by the Federal Retirement Thrift Investment Board to clamp down on frequent trading in TSP funds. The notice makes the argument that the restrictions are necessary to protect the interests of the majority of TSP investors whose financial investments are being put at risk by the actions of those trying to time the market and forcing all TSP participants to accept additional financial risk they did not anticipate. A press release from a group opposed to the changes states that the cost of trading for each TSP shareholder has declined despite the market timing activities of some TSP participants.
The yearly process of determining the annual federal pay raise has begun. Here are our predictions on the outcome of the process for the 2009 federal pay raise.
Most American companies have some type of pay for performance system. But pay for performance is unique in the federal government and has generated heated debate and intense opposition. With the average employee under the new system getting a raise that is twice as large as the rest of the federal workforce, it may not seem as threatening.
Panic selling of stocks has gripped overseas markets. The TSP stock funds may take a big dip as the American stock markets open after the long weekend. Can your TSP stock funds fall further than they already have? Here is an historical point of reference.
Readers have been asking questions about the 2008 pay raise. Most of the questions boil down to “Why didn’t I get the 3.5% I am supposed to get in my check this year?” or “How come people in DC are getting more than I am getting when they already make more money?”
It is hard to believe but the annual federal pay raise has been approved and OPM has issued various documents implementing the 2008 pay rates for federal employees. The median salary for federal employees in the DC area in 2008: $90,698.
Readers have asked several questions about the pay tables we have posted on our site for the 2008 pay raise. Here are answers to the most common questions.