The Foreign Service Journal, July-August 2006

annual step increases, equivalent to about 3 percent of base pay, while allowing the department to use the resulting savings to create a perfor- mance pay fund. (This change would not affect annual cost-of-living adjust- ments.) Officers could fare better under the new framework, but only if their performance is deemed out- standing. Moreover, under the new system, for every officer getting a big- ger raise than average, another would get less, a zero-sum proposition that would be anathema in agencies less attuned to merit-based compensation. As an incentive for the Foreign Service to accept this unprecedented change, State would phase in overseas comparability pay, the equivalent of Washington, D.C.- level locality pay for all its personnel serving abroad. Locality pay, which all federal employees receive on top of their base salary depending on where in the U.S. they work, is intended to close the gap between what public-sector and pri- vate-sector employees are paid for performing similar jobs. Unfortun- ately, the Federal Pay Comparability Act of 1990, 5 USC 5301 et seq., cur- rently prohibits the payment of local- ity pay outside of the continental U.S. (However, due to a 2004 techni- cal change in the law, all members of the Senior Foreign Service and Senior Executive Service, as well as employees of some federal agencies serving overseas, do receive it.) With Washington, D.C., locality pay already above the 17-per- cent mark, and rising by about a percentage point each year, this prohibition effectively imposes a double-digit pay cut on all Foreign Service employees serving abroad. This disparity damages both the morale and the diplo- matic readiness of U.S. foreign affairs agencies. The Office of Management and Budget, which has C O V E R S T O R Y J U LY- A U G U S T 2 0 0 6 / F O R E I G N S E R V I C E J O U R N A L 21 Huge concerns persist about the department’s commitment to helping diplomats maintain their family lives. The Janne t t e Embassy P l an Overseas Insurance for Personal Auto & Contents Coverage Each policy is backed by the expertise and dedicated support of our customer service team. To learn more about the specific coverages offered by the plan, please visit our website at www.jannetteintl.com. The Janne t t e Embassy P l an Administered by Clements International One Thomas Circle NW, 8th Floor, Washington D.C. 20005 (800) 256-5141 (202) 478-6595 Fax (202) 466.9069 jannetteplan@clements.com www.jannetteintl.com Your Reliable Choice Since 1969, the Jannette Embassy Plan has provided dependable coverage to thousands of Foreign Service Personnel throughout the world. Our plan provides U.S. and Canadian personnel working at embassies and consulates insurance protection for their personal property, including automobiles and household effects. WORLDWIDE COVERAGE Fire, theft comprehensive and collision protection are available at foreign posts U.S. AUTO LIABILITY Available for short-term on home leave, change of assignment, and new auto purchase prior to foreign departure. This coverage must be issued in combination with an Jannette Embassy Plan FOREIGN LIABILITY Contact post for compliance with local laws, excess liability limits over local liability coverage PERSONAL COVERAGE Household goods, transit, valuables, personal liability and life insurance EMPLOYEE ASSOCIATION INSURANCE Including directors and officers