It doesn't exceed nor does it fall short of the mark, its exactly what I expected but I have been known to be realistic. I do believe that there will be some rough seas ahead in the coming few years and this is where the real indication for future success lie.
As for a pay increase, I'm not so sure. I would expect the 3% step to be sure, a raise is a different story.
However I think most people will agree that where they give with one hand, they will take with the other.