[House Document 114-189]
[From the U.S. Government Publishing Office]




114th Congress, 2d Session - - - - - - - - - - - - House Document 114-189

 
    ALTERNATIVE PLAN FOR 2017 LOCALITY-BASED COMPARABILITY PAYMENTS

                               __________

                             COMMUNICATION

                                  from

                     THEPRESIDENTOFTHEUNITEDSTATES

                              transmitting

   A REVISED ALTERNATIVE PLAN FOR PAY INCREASES FOR CIVILIAN FEDERAL 
EMPLOYEES COVERED BY THE GENERAL SCHEDULE AND CERTAIN OTHER PAY SYSTEMS 
  IN JANUARY 2017, PURSUANT TO 5 U.S.C. 5304a(a); PUBLIC LAW 101-509, 
               TITLE I, SEC. 101(a)(1); (104 STAT. 1436)
               

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    December 12, 2016.--Referred to the Committee on Oversight and 
              Government Reform and ordered to be printed
              
              
                                   _____________
                                
                        U.S. GOVERNMENT PUBLISHING OFFICE
69-011                             WASHINGTON : 2016              
              
              
              
              
              
              
                                           The White House,
                                      Washington, December 8, 2016.

Hon. Paul D. Ryan,
Speaker of the House of Representatives,
Washington, DC.

    Dear Mr. Speaker: I am transmitting a revised alternative 
plan for locality pay increases for civilian Federal employees 
covered by the General Schedule and certain other pay systems 
in January 2017. This revised plan supersedes the original plan 
issued on November 29, 2016. Title 5, United States Code, 
authorizes me to implement alternative pay plans for pay 
increases for civilian Federal employees covered by the General 
Schedule and certain other pay systems if, because of 
``national emergency or serious economic conditions affecting 
the general welfare,'' I view the adjustments that would 
otherwise take effect as inappropriate.
    Civilian Federal employees made significant sacrifices as a 
result of the 3-year pay freeze that ended in January 2014. 
Since the pay freeze ended, annual adjustments for civilian 
Federal employees have also been lower than private sector pay 
increases and statutory formulas for adjustments to the General 
Schedule for 2014 through 2016. However, keeping our Nation on 
a sustainable fiscal course requires tough choices.
    Under current law, locality pay increases averaging 28.49 
percent and costing $26 billion would go into effect in January 
2017. Federal agency budgets cannot sustain such increases. In 
my August 31, 2016, submission of an alternative plan for base 
pay increases, I stated that the alternative plan for locality 
payments would be limited so that the total combined cost of 
the 1.0 percent across-the-board base pay increase and the 
varying locality pay increases would be 1.6 percent of basic 
payroll, consistent with the assumption in my 2017 Budget. 
However, in light of the decision of Congress to provide a 2.1 
percent pay increase for military personnel in 2017 and 
reconsideration of current and projected economic conditions, I 
have concluded it would be appropriate to revise my original 
alternative plan for locality payments so that the total 
combined cost of the 1.0 percent across-the-board base pay 
increase and varying locality payments will be 2.1 percent of 
basic payroll. Thus, under the revised alternative plan, the 
varying locality pay increases will generate costs of 1.1 
percent of basic payroll.
    Accordingly, I have determined that under the authority of 
section 5304a of title 5, United States Code, locality-based 
comparability payments for the locality pay areas established 
by the President's Pay Agent, in the amounts set forth in the 
attached table, shall become effective on the first day of the 
first applicable pay period beginning on or after January 1, 
2017. These decisions will not materially affect our ability to 
attract and retain a well-qualified Federal workforce.
            Sincerely,
                                                      Barack Obama.
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