The freeze applies to all civilian federal employees including the U.S. Department of Defense.
Jeff Zients, the Office of Management and Budget Deputy Director for management gave further details during the call yesterday afternoon.
“This does not apply to promotions and it does apply to the annual pay increases,” Zeints said. “The President proposed in his 2011 budget a 1.4% increase for the military, and we are in the middle of the 2012 budgeting process and no, this freeze does not apply to the military.”
Zients was asked if there were concerns about public sector employees leaving for the private sector due to the freeze.
“I believe that people come to government service for a range of reasons including first and foremost their desire to serve. So I feel comfortable, and we feel comfortable, that we continue to have a strong value proposition and can attract the best and brightest in government service.”
Zients added that work using outside contracting and added costs will also be kept in check.
“We are absolutely looking to wring out any excesses in contracting. The president put a stake in the ground last year that we were going to save $40 billion dollars by the end of fiscal year ‘11 and we are on track to do so.”
“So we are making sure that contracting remains tight and competitive.”
The White House says the freeze is expected to save $2 billion for the remainder of this fiscal year, $28 billion over the next five years, and more than $60 billion over the next ten.