Even though the federal pay freeze moving through Congress only applies to executive branch agencies, the NCUA Board should have it apply to the agency's employees, CUNA President/CEO Bill Cheney wrote NCUA Chairman Debbie Matz today.
"In light of this new proposal from the Administration and continuing negative pressures on credit unions' net income, we urge the NCUA Board to agree to implement the freeze to the fullest extent possible, whether it technically applies to the agency or not," Cheney wrote.
"In light of the belt tightening at credit unions and the new proposal from the Administration, we believe it is appropriate and reasonable for NCUA to do all it can to contain its own costs," he added.
Last week, the House passed a two-year freeze for all executive branch employees. The Senate could take up the measure this week.
The $225.4 million 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 Obama administration contends it would save $5 billion over the two years of the freeze. The annual deficit is $1.3 trillion.
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