Blue-Collar Thrift Pitfall
Most of the government's 500,000 blue-collar workers will be able to set aside a bigger chunk of their salaries for the new federal investment plan-and also get bigger matching contributions from the government-than their white-collar colleagues.</br></br>That is possible because the law setting up the thrift plan permits employes whose pay has been limited by Congress to make larger contributions based on the prevailing local wage for their skills.</br></br>In the Washington area, for example, the average pay for electricians, mechanics, carpenters and other similar workers is $23,400, according to the Office of Personnel Management.</br></br>But federal officials say that the wage rate for those jobs here is now actually 14 percent higher than the government average.</br></br>Despite the fact that federal law requires the government to pay wages equal to the private sector's, Congress has limited raises in recent years to the same amount granted white-collar workers.