You don't see it happening but it most certainly does happen.  That's why this year will be the third in 10 years with any pay increase and only the second during that time with a merit pay increase component that was funded.  Think about that for a minute.  10 years with only three COLA increases of any size (1 1.75 and 2 percent) and only the second with a merit increase of up to .75 (the other was up to 1.5%) in 10 years. That is 'now money' we are talking about.  By contrast the private sector has seen 3 years of the last 10 with no COLA and 7 with between a 2.1 and 3.5 COLA.  And of course merit pay increases for all 10 years based on what is needed to keep critical employees.