Who is exempt from concessions and cutbacks?

This morning I was listening to the Wall Street Journal's morning program on NewsTalk 1370 WSPD and they were talking about some of the cutbacks private industry is making when it comes to employees and benefits.

They mentioned the lack of pay raises, the elimination of bonuses, the decrease in or elimination of pension contributions, charging employees more of their health care costs, and the elimination of direct or matching charitable contributions.

My husband then wondered aloud why it was that government wasn't taking a cue from these private businesses and making similar cuts. My response was that our local governments were endeavoring to do just that, and that Gov. Ted Strickland had ordered many cuts.

But he was referring to the federal government. And I realized that we've not heard a single news story about the federal government doing any of the things that local and state governments are having to do. In fact, we find the federal government increasing spending (bailouts and loans) and considering requests by states to make up their shortfalls.

So I'm wondering - what is the benefit plan for federal employees? Do they pay a portion of the costs for their medical coverage? Have federal unions been asked to make concessions like our local city unions? Are there opportunities for reducing the cost of the federal government by evaluating and tying federal employee total compensation to the marketplace?

If you know, please share the information or provide links. I can't help but believe that there are things the federal government can and should do in this regard.