European Stars And Stripes (Newspaper) - September 1, 1989, Darmstadt, Hesse                                Friday september 1. 1989 the stars and stripes Page 3 report recommends Federal pay be increased in High Cost areas Washington a High level Federal employees in los Angeles. San Francisco new Orkand its environs and possibly in Boston and Washington should get supplemental pay to compensate for those areas High living costs a consulting firm told the government thursday. The Walt co. Of Philadelphia also proposed that every government Agency be permitted to pay up to 15 percent above Normal salary rates to 5 percent to10 percent of its employees to help the agencies com Pete with private employers for skilled White Collar workers. In addition the government should be permitted to hire 500 world class experts in senior positions for whatever pay the Market demands the report said. That recommendation was intended to address the frequently cited problem of recruiting and retain ing officials for some skilled positions such As head of the National cancer Institute and some scientific posts in the National aeronautics and space administration. The yearlong study described As the most comprehensive of its kind Ever undertaken was con ducted under contract to the office of personnel management. The Wyatt report did not specify the size of the geographic differentials it recommended. It called for paying differentials to professionals and administrators in a limited number of High pay  specifying Only the new York Region the two Cali fornia cities and possibly Boston and Washington. The report estimated it would Cost $6 billion in1989 to implement the recommendations and adjust All Federal salaries to Market rates. However. Con fress would have to Reform the Federal pay system fore the recommendations could take effect. The study said that if its recommendations we readopted a Gap of 14 percent would still exist be tween what the government pays its 1.4 million White Collar workers and what they could earn in private Enterprise. Overall the primary problem is that Federal Sala Ries have fallen so far behind the pay offered by other employers that it is difficult to recruit an retain adequately qualified workers in some occupations and locations the report said. These prob lems will become progressively More severe Over the next several years one result of the problem the consulting fir noted is that government agencies use backdoor methods to Reward employees. For example attempts to provide competitive pay can take the form of Grade creep in which workers arc promoted to higher classifications in order to get them More Money the report noted. Earlier this month an inter Agency group from the labor department office of personnel management and office of management and budget said the pay Gap for All civilian government Wolkis not jus White Collar workers had reached 28.6 percent. A week ago the government s advisory commit tee on Federal pay recommended a pay increase of 10 percent next year to help narrow the Gap. The Bottom line on Federal pay is that the Gap has become a Canyon advisory committee chair Man Martin l. Duggan said. But on monday president Bush acting on a agreement worked out by congressional leaders and administration officials last Spring recommended a increase of 3.6 percent to take effect in january. Bush has also asked Congress to provide increase of 8 percent to 25 percent to 7,900 lop Federal and military officials 700 political appointees and7,200 career executives including lop foreign serv ice officials and three Star and four Star admirals and generals. Bush said those increases were needed to address pay deficiencies for employees with exceptional qualifications and to make pay More competitive at the senior Levels  at the same time the president proposed that Al members of the senior executive service the top Levels of career employees be required to undergo a certification process every three years to prove their Worth in order to keep the higher salaries. New rules to help Consumers find beef credit cards Washington a Federal disclosure rules taking effect thursday will make it easier to shop for a credit card fostering Competition that could lower interest rates for the nation s 107 million cardholders. The regulations adopted in april by the Federal Reserve Board require credit card issuers to Dis close the interest rate monthly fee Grace period and other terms in a Chart on the application used to sign up customers. Until now companies have been Able to attract customers through hyped up advertisements and mail solicitations without disclosing the card s costs until in arrived in the mail. Hype and Glitz arc still permissible but now will have to be accompanied by hard facts. The Ball is now clearly in the consumer s court. There will be big print up front disclosure said rep. Charles Schumir d-n.y., the sponsor of legis lation adopted last october that directed the fed to formulate the disclosure rules. The rules apply to Bank cards such As visa Mastercard and discover to department store cards and also to charge cards such As american express and diners club which require All charges to be paid each month. Companies that were using gimmicks to hid their High Rales can t now said Peggy Miller a lobbyist for the consumer federation of  m very hopeful that this will at least provide the Edge to Consumers to make better judgments consumer activists arc hoping the regulations will Force credit card companies to compete by Low ering their interest rates and annual fees. But Robert b. Mckinley publisher and editor of ram research s bankcard update a Frederick,md., newsletter that follows the Industry has doubts. Competition has increased in the past several years but rates Are still High even in the dozen or so states such As California and new York that have their own disclosure Laws he said. Nationally cards offered by Banks had average interest rates of 18.28 percent in August and an average annual fee of s16.97, Mckinley said. One reason is the growing concentration of the Industry As Large institutions buy out smaller credit card operations he said. Another is that Consumers Don t appear to pay much attention to interest rates even when card companies disclose them. Economists attribute the indifference in part tothe fact that most people intend to pay off their entire Bill each month avoiding interest charges. But a substantial portion Don t follow through on their Good intentions. Credit card rates first became a political Issue in the Early 1980s when Short term interest rates soared above 20 percent. List shows Best rates offered on credit cards Washington a Here is list of 10banks and savings institutions offering credit cards with interest Rales below 16 percent in a gust according to ram research s bankcard list. Ram research based in Frederick md., sur Veys 350 Banks representing 90 percent of the Bank card Market according to editor and pub Lisher Robert b. Mckinley. Nationally in August rates averaged 18.28 per cent and annual fees $16.97. I. Arkansas Federal. Lnla Rock Ark. 11.81 percent annual inter Ett. Variable. A annual Lee. No Grace period. Interest charged Iro Date of Purchase. 2. People b Bank. Bridgeport. Conn. 13.5 percent but a higher rate charged or Curt Advance. J25 annual Lee. " Grace period. The. Twenty love Day 3. A cab Teaa. Dallas. 13.9 percent variable. No annual Lee. Twenty lure Day Grace period. 4. Re pubic a Iranga. Milwaukee. 13 92 percent $10 annual Lee. No Grace period. Interest charged irom Dale of posting. 5. Horizons Vang Austin the a. 14 percent. No annual Lee. Twenty love Day Grace period. 6. First Atlanta. Wilmington. Del. 14.88 percent $24 annual  Grace period 7. Connecticut Bank and Trust. Far my. Conn. 15 percent but higher rate Lor Cash advances. $25 annual Lee. Twenty love Dey Grace period. 8. Usaa Federal. Tulu okie. 1 i 32 percent variable. No annual Lee. Twenty five Day Grace period. 9. Mercantile. St Louis. 15.9 percent. $20 annual Lee. Twenty love Day Grece penod.10. Champion Federal. Boom Langton. In. 15.9 percent $20 annual Lee. Thirty Day Grace Pend. Consumers should Check with the credit car issuers to see if any of the rates or fees shown Here have changed and to obtain information about other terms. Consumer groups sought disclosure rules and fed eral Caps on the rates but made Little headway until they dropped their demand for Caps. Trade groups such As the american Bankers association supported the final legislation because it preempted state disclosure Laws making the rules uniform throughout the nation and did not include Caps which Bankers argued would Force them to offer cards to Only the most affluent customers. Although earlier disclosure of card terms should help card shoppers Mckinley said in still won t be easy to pick the right card. Big National operations which do the most Adver Tising and mail solicitation generally charge higher rates and fees. The Best bargains often come from Banks an savings institutions that at most advertise Only regionally. Mckinley said Consumers before choosing Acard should decide whether they will use it for convenience or to borrow. Cardholders that pay their entire balance monthly should look for a card with no or a Low annual fee. However those that carry balances of $1,000 or More May find it cheaper to pay a fee in Exchange for a lower rate. Under the 1986 lax Law the deduction for con Sumer interest is dwindling Down to 20  this year and As a result More than 40 percent of cardholders now avoid interest charges by paying their full Bill every month he said. The new rules require companies to notify exist ing customers in Advance when their accounts Are about to be renewed and another annual fee charged. Consumers should use the renewal notice As reminder to switch cards and save said Elgin Holstein director of the bankcard holders of America a consumer group. She advised cardholders to pay off their High rate cards with a Cash and Vance from a Low rate card. Mckinley lists some gimmicks that consumer should beware of even with the new rules some cards with no annual fee compensate by charging interest rates More than 20 percent. Often the annual fee is waived Only for the first year. Other cards offer skip a payment options buttock on added interest costs to the next Bill. Cards with Low rates compensate by charging High annual fees or they allow no Grace period As Sessing interest As soon As an item is  advertise Cost saving variable rates that wind up being substantially higher than National averages for fixed rates. Some Banks offer a lower annual fee or an in Terest rate break but Only if customers maintain a checking account that carries a $5 or $6 a month service charge. Other companies lout i percent rebates on Pur chases but charge interest rates 3 percent to 4 per cent higher than most cards