On December 22, President Biden signed an Executive Order authorizing federal government pay raises, averaging 2.7% across all locality areas. Full transcript.
Subsequent to the E.O. OPM issued four 2022 Compensation Policy Memoranda (CPM):
The 2022 pay tables are now live at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/
Federal (GS) employees in Honolulu will see the 2.2% across the board (GS) raise, and an increase in locality pay to 20.40%, and in accordance with current law, the non-foreign COLA will be reduced to 9.75%. While the OPM salary table indicates a total increase of 2.92%, the COLA offset effectively reduces the pay raise to the across the board increase of 2.2%. Federal pay for most workers in Hawaii will remain at approximately 38.4% above the GS baseline until the estimated 30 year transition to “zero out” COLA is completed, though the locality pay increases will slowly increase retirement annuities.
Get the updated HPFEB Locality Pay Fact Sheet: HPFEB 2022 COLA – LP Fact Sheet
2022 – By the Numbers
Military Pay Raise: 2.7%
Social Security COLA and Taxes: COLA 5.9% (CSRS retirees see the full 5.9% COLA, FERS retirees will receive a 4.9% COLA). The 5.9% COLA amount is also applied to military retirements, VA benefits, SSDI etc.
Max Earnings Subject to Social Security Tax: Increases to $ 147,000.
TSP Contribution Limits:
Annual Elective Deferral: $ 20,500
Catch-Up Limit (age 50 and over) $ 6,500
FSA Feds: Health Care FSA: New maximum contribution is $ 2,850
Dependent Care FSA: Maximum remains $ 5,000 per household.
A safe and happy holiday season to your employees and thanks for all that you and your agencies do for the American people.