Message to the Congress on Federal Civilian and Military Pay Increases.

To the Congress of the United States:

In accordance with the provisions of section 5305 of title 5, United States Code, I hereby report on the comparability adjustment I am ordering for the Federal statutory pay systems in October 1973.

The Director of the Office of Management and Budget and the Chairman of the United States Civil Service Commission, who serve jointly as my agent for Federal pay, have recommended a 4.77 percent average increase in Federal statutory pay rates--a figure arrived at by computing comparability using a new computation method which will be phased in over the next three years. The new method compares actual average salaries in the private and Federal sectors instead of assuming, as the former system did, that the 4th rate of each grade represented the Federal average. This change follows recommendations made last year by the Advisory Committee on Federal Pay.

Since the effect of the new method is to reduce somewhat the size of the pay adjustment from the 5.47 percent that would have taken effect under the old computation method, the Federal Employee Pay Council and other Federal employee organizations are understandably opposed to its introduction at this time. The Advisory Committee on Federal Pay, however, agrees with my agent that a change is necessary and has endorsed the new method, although the committee did recommend that it be introduced next year.

In reaching a final decision on the appropriate comparability adjustment, I have given careful consideration to all of these views. My agent and the Advisory Committee are not in disagreement on whether to adopt the more precise way of determining comparability, only on when. The Advisory Committee's recommendation to begin the change in 1974 was based on the assumption that the current increase would not occur until the final month of 1973. This assumption no longer holds, and I have decided that we should move now in the direction of the more accurate method, making the transition gradually over a three-year period to avoid undue hardship to employees by an abrupt change in the system. Based on that decision, I have concluded that an average increase of 4.77 percent in the pay rates of the statutory pay systems is the appropriate comparability adjustment.

I am transmitting herewith the reports of my agent and the Advisory Committee, as well as a copy of the Executive Order I have promulgated to put this pay increase into effect. Also enclosed is an Executive order adjusting basic pay for members of the uniformed services, as required by section 8 of Public Law 90-207 (81 Stat. 654).

RICHARD NIXON

The White House,

October 3, 1973.