White House Wants To Change Pay For Federal Workers

click to expand

By JOSH BOAK/AP Economics Writer

WASHINGTON (AP) - The White House wants to change how more than 1.5 million federal workers are paid, emphasizing performance-based raises instead of the current system that generally increases pay based on tenure.

Senior officials with the Office of Management and Budget say these changes would be proposed as part of President Donald Trump's 2019 budget plan, to be released Monday.

The officials insisted on anonymity to discuss details that have yet to be made public.
The proposal would slow tenure-based increases, generating $10 billion over 10 years for performance-based payments.

The administration is also studying whether it's better to recruit workers with a defined-contribution retirement plan, rather than a pension plan.