How The Other Half Lives

The vast majority of federal workers do their thing in the U.S.A. The heaviest concentrations of feds are clustered in the metro Washington area, California, Texas, New York, Michigan, Missouri, Georgia, etc. The largest number of people are involved in moving the mail, followed by Defense activities, Veterans Affairs and Homeland Security. The civilian government is made up of all sorts of occupations – from park rangers, judges and astronauts to librarians and snipers.

Most white collar federal workers are in one of the 30 plus locality pay areas where salaries are adjusted each year based, in part, on local private sector wages.

But tens of thousands of civil servants with Defense, State and a dozen other agencies spend some to much of their careers overseas. Sometimes in very nice places. More often, of late, in some very tough, dangerous places.

Outside of the State Department, most agencies with overseas American employees pay them a variety of differentials, allowances, etc., to help with local living conditions. Cost of Living Allowances can be hefty, and helpful. But in most cases they are not considered as part of base pay for the purpose of computing retirement benefits. That means someone with a 25 percent COLA can live well – until retirement. But then he or she takes a big hit because that COLA doesn’t count when their high-3 year average salary is computed.

We dealt with a new COLA plan here Monday in a story by Internet Editor Dorothy Ramienski. Amy Morris and I talked about it on her Daily Debrief radio show. To check them out, click here.

Now comes a fascinating letter from a been-there-done that individual who has been in some tough spots. Here’s a view into how the other half of the federal workforce lives:

Know that the Dept. of State calculates High-3 for employees at the Washington DC Locality pay rate – even if they are outside the USA for their last 3-yrs.

DoD on the other hand has a “5-year” rule to kick folks out of overseas assignments as management sees fit. Extensions past the original 3 year contract are NOT appealable, thus unless someone kisses ass, they go back to where they came from fast.

I’m currently am serving in Operation Iraqi Freedom (OIF). I enjoy a tax free separation allowance and a little COLA (about $200/PP). However my paid rent, provided vehicle (and $0.40/gal gas), COLA and separation allowance all terminate on retirement, as does the 15% Hazard Pay and 15% Foreign Post Differential. My retirement is based on something called the “Base Rate”, currently about 13% lower then the RUS, 21% lower than Washington DC. I don’t qualify for the 20 year 1.1% FERS law enforcement retirement as it is not dangerous in the battle space for decoys. I also pay US Federal income tax on most of my earnings while US contractors are income tax exempt.

Thus I will rathole away everything I can, then cut out for my last 2-yrs of federal employment using the DoD Priority Placement Program (PPP) to some job in the states. Where, thanks to PPP, the person that should have landed the job is ticked off at me, the boss likewise angry and me, I’m just there to use 5 weeks of vacation my second to the last year and cash out 14 weeks of annual leave at the end of my career that will happen before the end of the 2d rating period with that poor agency that gets to hire me for retirement transition.

This costs everyone in the system… but it’s the only way for people who spend half of their 30 plus year careers in fun locations like the Balkans, OIF and Germany. American Abroad

Nearly Useless Factoid

According to a survey of 5,000 Europeans by the Apetina cheese company, Britons can prepare only three recipes from memory. Apparently British cooking is harder than we’d suspect.

To reach me: mcausey@federalnewsradio.com

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