1) It’s still just a proposal. Congress has to act on it.
2) It only freezes the annual cost of living increase, would be about 1.4% this January.
3) It does not freeze step increases (regular increases within a pay grade), performance bonuses, or higher salary due to a promotion.
In other words, it’s kind of a non-event, even if Obama did his by now-classic ploy of ceding ground and giving in before negotiations had begun.