Obama announces 2-year pay freeze for federal employeesPosted: Updated:
(AP) - President Barack Obama has announced atwo-year pay freeze for federal employees, saying the step isnecessary to help bring the federal deficit under control. The freeze would apply to all civilian federal employees butwould exclude military personnel. Obama says the sacrifices of limiting government spending mustbe shared by government workers. The White House says the freeze would save $5 billion over twoyears. By delaying wage increases, the freeze would save $28billion over the next five years, the White House says. The chairmen of Obama's bipartisan deficit commission proposed athree-year freeze in pay for most federal employees as part of itsplan to reduce the nation's growing deficit. The commission's finalreport is due to be released later this week.