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The Long Term Effects of the Pay Freeze
Fedsmith: Furloughs? Their effect is immediate and painful, but not really long lasting. That is, your salary rate is unchanged, your service time is not impacted, and your high-three is also safe. With the pay freeze, things are different. Both your salary rate and your high-three take a “hit.” Of course, if you are not within a few years of retirement, the negatives are washed out by subsequent step increases, promotions, general and locality raises, and the like.
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