Another proposal by a presidential commission would freeze pay for federal workers for three years and cut the workforce through attrition. The plan would save around $18 billion through 2020. The cuts in workforce through attrition would amount to around 200,000 positions. The report also recommends basing pensions on the five highest years of pay, instead of the three highest years. The commission said that cost-of-living adjustments would be deferred and employees would pay more into their retirement plans. The plan closely resembles the one announced earlier this week.
See "Presidential panel offers 2nd proposal on federal pay freeze", Joe Davidson, The Washington Post, December 1, 2010