FederalDaily - September 13, 2007
Senate Panel Approves 3.5% Military Pay Raise
The Senate Appropriations defense subcommittee on Sept.11 approved a 3.5 percent pay raise for servicemembers
and civilian military personnel as part of the DoD Fiscal Year 2008 spending bill. The 3.5 percent
increase in basic pay for all servicemembers and civilian military personnel is 0.5 percent more than
President Bush requested. Overall, the bill, HR 3222, appropriates $459.3 billion for defense spending,
a $39.4 billion (9.4 percent) increase over FY 2007 appropriated levels. The bill allocates an additional
$1 billion in FY 2008 for equipping National Guard and reserve forces, which have faced significant
shortfalls as a result of the demands of overseas deployments, the committee said in a statement. For
health care, the bill would appropriate $23.5 billion ($2.3 billion more than FY 2007, and $949 million
over the president’s budget request), including $486 million to reverse planned cuts to military
hospitals. The bill would also fund $73 million in programs authorized by the Dignified Treatment of
Wounded Warrior Act. National Treasury Employees Union (NTEU) President Colleen Kelley applauded the
military pay raise. “NTEU will keep up its effort to ensure a 3.5 percent raise in 2008 for those
in the military and their families as well as those who serve in the civilian federal workforce,” Kelley
said. To see more, go to: http://appropriations.senate.gov
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NALC Members OK New 5-Year Pact
Members of the National Association of Letter Carriers (NALC) overwhelmingly ratified a new five-year
contract with the U.S. Postal Service (USPS) that includes wage hikes of 8.85 percent over the life
of the pact. The vote, approved by a margin of 104,346 to 11,895, ratifies a tentative settlement reached
by negotiators on July 12 that had been endorsed unanimously by the NALC Executive Council. Results
of the balloting were released Sept. 11 by NALC President William Young. He pointed out that the contract
also includes semi-annual cost-of-living adjustments, as well as new protections against the contracting
out of letter carrier work by USPS to private firms and individuals. The agreement also includes a
1.4 percent wage increase retroactive to Nov. 25, 2006. The contract runs until Nov. 20, 2011. NALC
represents 222,000 city delivery letter carriers. To see more, go to: www.nalc.org
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U.S. Health Insurance Premiums Rise 6.1% in 2007
Nationwide, premiums for employer-sponsored health insurance rose an average of 6.1 percent in 2007—less
than the 7.7 percent increase reported in 2006, but still higher than the average worker’s wages
or inflation, says a new report. The Kaiser Family Foundation and Health Research and Educational Trust
on Sept. 11 released its 2007 Employer Health Benefits Survey, which examines the current
cost of health insurance premiums. The 6.1 percent average increase this year was the slowest rate
of premium growth since 1999, but it still was much larger than either the increase in workers’ wages
(3.7 percent) or the overall inflation rate (2.6 percent), the survey noted. Annual premiums for family
coverage now average $12,106, with workers paying about one-quarter of that, or $3,281, the survey
said. Since 2001, premiums for family coverage have increased 78 percent, while wages have gone up
19 percent and inflation has gone up 17 percent, the survey said. “We're seeing some moderation
in health-cost increases, but premiums for family coverage now top $12,000 annually,” Kaiser
President and CEO Drew Altman. said. “Every year health insurance becomes less affordable for
families and businesses.” To see more, go to: www.kff.org/insurance/7672.
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