[Congressional Record Volume 144, Number 16 (Thursday, February 26, 1998)]
[Senate]
[Page S1127]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   FEDERAL EMPLOYEE PAY FAIRNESS ACT

 Mr. SARBANES. Mr. President, yesterday, I joined with my 
colleagues, Senators Mikulski, Warner, and Robb in introducing S. 1679, 
the Federal Employee Pay Fairness Act of 1998, legislation that will 
seek to ensure pay equity for our Nation's civil servants.
  In 1990, Congress and then-President Bush approved the Federal 
Employees Pay Comparability Act of 1990 (FEPCA), legislation which 
governs the pay system for all general schedule Federal employees--
nearly 76% of the workforce in the Executive Branch. Recognizing that 
Federal employees' salaries have trailed those of their private sector 
counterparts by an much as 30%, this law was enacted in order to bring 
Federal employees toward comparability with the non-federal rates that 
prevail in different localities across the country.
  The law set in motion a schedule to close 20% of the pay gap in 1994 
and an additional 10% each year thereafter through 2002 to bring 
Federal salaries within 5% of their private sector counterparts. Each 
year, the President's Pay Agent makes a recommendation to the President 
as to what the rates should be in order to comply with FEPCA and remain 
on schedule to reach comparability by 2002. However, the law also 
grants the President the authority to override this schedule and set 
the pay adjustments annually. Since 1994, FEPCA has never been fully 
implemented. In fact, in 1994, 1995, 1996 and 1998, Federal workers 
received a reduced annual adjustment, and fully locality payments have 
never been provided. Thus, instead of facing a 30% pay gap in 1999 as 
FEPCA would have allowed, we actually face a 69.3% gap today.
  The President has the authority under FEPCA to deviate from the Pay 
Agent's recommendation ``because of national emergency or serious 
economic conditions.'' Although FEPCA cites consideration of pertinent 
economic measures such as the GNP, unemployment rate, budget deficit, 
and CIP, it does not define what constitutes a ``serious economic 
condition.'' In fact, despite the record economic growth, low 
unemployment, and reduced budget deficits of the past five years, the 
President continues to cite ``serious economic conditions'' each year 
when he deviates from the FEPCA-recommended pay levels and proposes a 
lower pay plan.
  Our bill, a companion to legislation introduced by Congressman Hoyer 
and others in the House, would change ``serious economic conditions'' 
to ``severe economic conditions'' and define ``severe economic 
conditions'' to clearly indicate when the President can exercise his 
authority over the pay schedule. Simply put, a ``severe economic 
condition'' is defined in the bill as ``two consecutive quarters of 
negative growth in the real Gross Domestic Product''; the definition of 
recession most commonly used by economists. By providing an objective, 
rather than a subjective standard, this legislation will ensure that 
our Federal employees receive a fair and adequate pay level, as set out 
in current law.
  Mr. President, over the years, Federal employees have made 
significant sacrifices in the name of deficit reduction. The Federal 
government is currently on target to downsize by more than 272,000 
employees by 1999, and according to the Office of Personnel Management, 
has already reduced the number of Federal workers by more than 254,000 
as of September, 1997. Additionally, these employees have persevered 
despite numerous attacks on their pay and earned benefits and the 
denigration by some in this body during the government shutdowns of 
1995 and 1996. Through it all, Federal employees have continued to 
provide the high quality of service the American public has come to 
know and expect.
  Now, in order to maintain the high quality of service the American 
people have come to expect, we need to be able to recruit and retain 
the most qualified and competent employees. Certainly, if we are to 
expect more from our Federal workforce, if these very dedicated 
individuals have to do more with less during this time of downsizing, 
then we should ensure a rate of pay comparable to what they could get 
in the private sector. Federal employees and the public they serve 
deserve no less.
  Mr. President, as one who firmly believes in value of a first-rate 
public service, I urge my colleagues to join me in support of this 
important legislation to provide pay equity for America's Federal 
worker.
  Mr. President, I ask that the text of the bill be printed in the 
Record.
  The text of the bill follows:

                                S. 1679

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Employee Pay 
     Fairness Act of 1998''.

     SEC. 2. LIMITATION ON AUTHORITY TO PROVIDE FOR AN ALTERNATIVE 
                   PAY PLAN.

       (a) In General.--Paragraph (1) of section 5303(b) of title 
     5, United States Code, is amended by striking ``If, because 
     of national emergency or serious economic conditions 
     affecting the general welfare,'' and inserting ``If, because 
     of a declared state of war or severe economic conditions,''.
       (b) Severe Economic Conditions Defined.--Section 5303(b) of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``(4) For purposes of applying this subsection with respect 
     to any pay adjustment that is to take effect in any calendar 
     year, `severe economic conditions' shall be considered to 
     exist if, during the 12-month period ending 2 calendar 
     quarters before the date as of which such adjustment is 
     scheduled to take effect (as determined under subsection 
     (a)), there occur 2 consecutive quarters of negative growth 
     in the real Gross Domestic Product.''.
       (c) Conforming Amendment.--Paragraph (2) of section 5303(b) 
     of title 5, United States Code, is amended by striking ``an 
     economic condition affecting the general welfare under this 
     subsection,'' and inserting ``economic conditions for 
     purposes of this subsection,''.

     SEC. 3. LIMITATION ON AUTHORITY TO PROVIDE FOR AN ALTERNATIVE 
                   LEVEL OF COMPARABILITY PAYMENTS.

       (a) In General.--Subsection (a) of section 5304a of title 
     5, United States Code, is amended by striking ``If, because 
     of national emergency or serious economic conditions 
     affecting the general welfare,'' and inserting ``If, because 
     of a declared state of war or severe economic conditions,''.
       (b) Severe Economic Conditions Defined.--Section 5304a of 
     title 5, United States Code, is amended by redesignating 
     subsection (b) as subsection (c) and by inserting after 
     subsection (a) the following:
       ``(b) For purposes of applying this section with respect to 
     any comparability payments that are to become payable in any 
     calendar year, `severe economic conditions' shall be 
     considered to exist if, during the 12-month period ending 2 
     calendar quarters before the date as of which such payments 
     are scheduled to take effect (as determined under section 
     5304(d)(2)), there occur 2 consecutive quarters of negative 
     growth in the real Gross Domestic Product.''.

     SEC. 4. EFFECTIVE DATE.

       (a) New Standards Apply Starting With Any Alternative Pay 
     Proposal Scheduled To Take Effect After 1998.--The amendments 
     made by this Act shall apply with respect to any alternative 
     pay adjustments under section 5303(b) of title 5, United 
     States Code, and any alternative level of comparability 
     payments under section 5304a of such title 5, scheduled to 
     take effect after 1998.
       (b) Transition Provisions.--
       (1) Revised deadline for alternative pay plan required to 
     be submitted in 1998.--For purposes of applying section 5303 
     of title 5, United States Code, with respect to any 
     adjustment scheduled to take effect in calendar year 1999, 
     subsection (b) of such section (as amended by section 2) 
     shall be applied by substituting ``December 1'' for 
     ``September 1'' in paragraph (1)(A) thereof.
       (2) Effect of an alternative pay proposal submitted based 
     on earlier standards.--Any plan or report submitted under the 
     provisions of section 5303(b) or 5304a of title 5, United 
     States Code, as applicable, relating to any alternative pay 
     adjustments or alternative level of comparability payments 
     proposed to take effect after 1998, if based on the standards 
     specified in such provisions as in effect before the date of 
     enactment of this Act--
       (A) shall not be implemented; and
       (B) shall not preclude the submission of any other plan or 
     report under such provisions as amended by this Act.

                          ____________________