OCC Bargaining Update - December 8, 2011

Employees to Receive Merit Pay Raises

Agreement Reached on First NTEU-OCC Compensation Contract

NTEU has reached a tentative agreement on a first-ever compensation contract at the Office of the Comptroller of the Currency (OCC) providing merit pay raises of as much as 4 percent for high-performing employees.  The one-year agreement features a long list of benefits, including an increase in employer contributions to 401k plans and health insurance premiums, that NTEU fought hard to secure in this difficult economic climate. It is the first compensation agreement at OCC since NTEU won the right to bargain over pay and benefits as part of the Wall Street Reform and Consumer Protection Act of 2010.

Here are some highlights of the new compensation agreement:
  • OCC will set aside 3 percent of funding for merit pay increases (base pay), with distribution tied to a fixed matrix based on ratings. This would double the pay increases for highest rated employees, with base pay increases ranging from roughly 2 to 4 percent of salaries, depending on the distribution of ratings within a pay pool. 
  • Funding for merit bonuses will be set at 1 percent of the amount set for salaries, with mandatory bonuses for highly-rated employees.
  • OCC must use any unspent money from funding for special increases on either merit increases or merit bonuses.
  • The OCC’s automatic contribution to each employee’s 401k plan will increase from 2 to 4 percent of salary, in addition to the 1 percent matching contribution and an additional $1,000 contribution per employee.
  • Employees will receive an increase in their "life cycle account" from $900 to $1,000.
  • Premium subsidies of the bi-weekly Federal Employees Health Benefits Program (FEHBP) will jump from $50 to $60.
  • Joint NTEU-OCC teams will be established to study and make recommendations on changes to performance management, geographic pay and student loans.

Employees transferred from the Office of the Thrift Supervision (OTS) will be in separate pay pools but receive the same 4 percent overall funding level, with distribution based on ratings and recommendations made by OTS managers prior to transfer. And once the contract is implemented, OTS transferees will be eligible for the 401k and FEHBP benefits, even though the Wall Street Reform bill keeps their own separate benefit plans through July 2012.

The OCC does not receive appropriations from Congress, but is instead funded primarily by assessments on national banks and federal savings associations.  NTEU fought hard to win the right to bargain over pay, and now the union is fighting to secure the best compensation agreement possible to reward employees' hard work. In the coming weeks, NTEU will work to ensure this compensation agreement is properly implemented and will look ahead to protecting and building upon these gains.

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