President Obama has proposed a 2-year freeze on pay raises for federal workers. Although federal employees are among the highest paid in the country, no cost-of-living increase means many workers, especially those over 50, may have to tack on a few more years to their retirement plan.
This also comes nearly two months after the White House announced there will be no cost-of-living raise for the more than 58 million Social Security recipients for the second year in a row.
Congress still has to endorse the idea. If the plan goes through, it would save $2 billion in 2011 and roughly $60 billion a year over the next 10 years. Not much of a dent in a deficit that tops $1 trillion. Presumably – the way the government sees it – every little bit helps, right?
-- Tina Johnson-Marcel