No Longer Taking a Pay Cut to Serve

Take a close look at the nation’s National Guard and Reserve units and you’ll find a lot of civilian feds.

From enlisted to officer, plenty of feds make up a substantial chunk of the Guard and Reserve, but for years that’s meant a significant pay cut.

Q: First things first — why would they be taking a pay cut?

A: Because they wouldn’t be collecting their civilian federal pay...

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Take a close look at the nation’s National Guard and Reserve units and you’ll find a lot of civilian feds.

From enlisted to officer, plenty of feds make up a substantial chunk of the Guard and Reserve, but for years that’s meant a significant pay cut.

Q: First things first — why would they be taking a pay cut?

A: Because they wouldn’t be collecting their civilian federal pay while serving in uniform.

Depending on their civilian federal job and their time in the Guard or Reserve, chances are they’re taking a salary hit when they leave that civilian job to serve in hot spots like Iraq, Afghanistan — and now there’s talk of deployment on the border with Mexico, too.

This will also be incentive for feds who are serving to continue to serve in the Guard or Reserves.

Q: So, that’s changing?

A: Yes.

The Office of Personnel Management has notified other agencies that whenever their employees are mobilized, they’re entitled to two things: first, they’re guaranteed a job when they return from their mobilization. Second, they’ll be provided a supplemental payment that’s equal to the difference between their civilian pay and their military pay.

So if you’re making $75,000 a year, but as a reservist you’re only making $40,000 a year, you’ll get a supplemental income of $35,000

Q: When does this take effect?

A: Now.

This is called The Omnibus Appropriations Act.

HR officers at all the agencies should be aware of it, but setting this up is going to be easier said than done.

Most civilians are paid biweekly and the military tends to pay monthly.

Also, officials want to be sure that the mobilized feds are paid their differential, and aren’t overpaid.

But, as of now, it is official.

THRIFT SAVINGS PLAN TICKER

May 26, 2022 Close Change YTD*
L Income 22.7139 0.0976 -3.32%
L 2025 11.4906 0.0859 -6.04%
L 2030 39.6951 0.4221 -8.58%
L 2035 11.8294 0.1377 -9.48%
L 2040 44.4375 0.5623 -10.33%
L 2045 12.0885 0.1636 -11.10%
L 2050 26.3208 0.3788 -11.80%
L 2055 12.7499 0.2205 -13.56%
L 2060 12.7491 0.2205 -13.56%
L 2065 12.7482 0.2206 -13.57%
G Fund 16.8797 0.0013 0.65%
F Fund 19.1524 0.0124 -9.33%
C Fund 61.6252 1.2035 -12.91%
S Fund 65.3406 1.5929 -18.83%
I Fund 34.8302 0.399 -12.73%
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.