NCUA employees and other federal employees could have their pay frozen if Congress approves a proposal announced today by President Obama.
The proposed two-year freeze, which must be approved by Congress, would apply to all civilian employees. The Obama administration contends it would save $2 billion during the first year it is in effect. The annual deficit is $1.3 trillion.
The budget approved by the NCUA for 2011 includes a 6.1% pay raise for employees covered by the collective bargaining agreement. That covers 80% of the agency's employees, and that three-year contract is up for renegotiation next year. The remaining 20% of employees are slated to receive a 3% increase, which was approved by the NCUA Board.
The $225.4 million 2011 budget funds 1,209 full-time equivalent employees. It's a 12% increase over this year's budget of $200.9 million, which funds 1,130 FTEs.
NCUA Director of Public and Congressional Affairs John McKechnie said the agency will have further comment on the freeze when details are released by the Office of Management and Budget and the Office of Personnel Management.