How Federal Employee Benefits Are Affected by the 2019 Retroactive Pay Raise - April 16, 2019
Edward A. Zurndorfer, My Federal Retirement
President Trump signed an Executive Order on Feb. 15, 2019 that implements a retroactive pay adjustment required by the Consolidated Appropriations Act of 2019. The Executive Order authorizes a 1.4 percent across-the-board increase for statutory pay systems and locality pay increases costing approximately 0.5 percent of basic payroll. This reflects an overall average pay increase of 1.9 percent effective January 6, 2019.
This column discusses how federal employees pay and benefits are affected by the 1.9 percent retroactive pay increase and what employees should expect. Also discussed is how the retroactive pay increase affects the benefits and retirement annuities (CSRS and FERS) of employees who retired in late December 2018 and early 2019.