Letter to my Congressmen on the President's proposal to change the pay structure for non-CONUS federal employees.

Subject Civil Service

I am very concerned with the President's recent proposal to change the Federal employee pay structure. While improving the retirement benefits by including the pay adjustment for where I work is attractive, the impact of significant negative change to my salary has me very nervous. I noted that the President's proposal will be phased in over 8 years, but that means if the change is significant, it will just approach us slower, it will still have impact.

Please consider that if the locality pay were set at the same 25% as the COLA payment, for people in the 28% taxbracket, it will mean a cut in salary of 28% plus the increase in medicare payments resulting in a cut in the COLA of one third or more. With the cost of housing and the cost of travel to other parts of the United States, this would have me very concerned. Mr. Chaney's letter to the President indicates that this will have a small increase in cost to the Government overall. With the increase in retirement benefits and taxes paid (employer portion) the only way this would occur is if the net payment to the employee was decreased.

Mahalo for your support in ensuring Hawaiian Federal employees pay equal portions of federal taxes and don't get double dipped by receiving less pay and paying more taxes.

A link to the proposal is here.