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Federal Managers Association
Washington Report
January 12, 2009
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Untitled Document
FMA WORKING FOR YOU! FAIR COALITION CAUTIONS OBAMA ON CHANGES TO FEHBP The FAIR Coalition, comprised of dozens of federal employee advocacy groups including the Federal Managers Association (FMA), delivered a letter to President-Elect Barack Obama calling for the next Administration to preserve the stability of the Federal Employees Health Benefits Program (FEHBP) in the face of economic volatility and the effects on healthcare in the United States. The letter, issued on January 2, requested that as Obama seeks to extend and improve health coverage for the public, the White House should not implement any strategy that may jeopardize the integrity of the FEHBP. “In the past, political interests have advocated the opening up of FEHBP, beyond the federal and postal population,” the letter explained. “We would strongly oppose opening up the FEHBP, without strict firewalls to protect the integrity of the FEHBP risk pool. The FAIR Coalition would caution against any proposal to integrate the uninsured and underinsured population into the FEHBP without such protections.” As the world’s largest employer-sponsored health program, the FEHBP, which serves roughly eight million individuals, is considered one of the greatest benefits enjoyed by federal employees and provides the government with another tool to recruit a highly effective federal workforce. The FAIR letter cautions that any actions that may adversely affect FEHBP will be received with substantial protest. The Coalition also offered Obama several suggestions for adjustments to the program providing enrollees with significant cost savings. Such alterations include authorizing the Office of Personnel Management to negotiate prescription drug prices, supporting legislation allowing retirees to contribute their share of the FEHBP premium on a pre-tax basis, and directing OPM to apply for the prescription drug subsidy available to other employers under Public Law 108-173. “The FAIR Coalition represents the interests of approximately 5 million Americans who are employees and retirees of the Federal government and the U.S. Postal Service, as well as members of their families,” the letter stated. “One of the most cherished earned benefits of federal and postal service is eligibility to participate in the Federal Employees Health Benefits Program (FEHBP). We believe that as your Administration seeks out strategies to extend and improve health coverage for every American, White House initiatives should not unintentionally jeopardize the integrity of the FEHBP.” To view a copy of the letter, please visit the Members Only section of FMA’s Web site at: www.fedmanagers.org. ************************************************************* WHAT’S HAPPENING ON CAPITOL HILL? 111th CONGRESS CONVENES, SSA CHAIR NOMINATED January 6, 2009, marked the official start of the 111th Congress, and already issues abound that both the House and Senate are urged to address in a prompt fashion. Most notable is President-Elect Barack Obama’s proposed economic recovery package, which House Speaker Nancy Pelosi (D-Cali.) announced January 9 would see action by House committees in the upcoming weeks. Pelosi has scheduled a full vote on the House floor the week following Obama’s inauguration. In the meantime, the House and Senate schedules remain in flux as leaders continue to shut down their respective chambers to address the economic package. In other Hill news, the Democratic leadership has set its members of the House Ways and Means Subcommittee on Social Security, electing Representative John Tanner (D-Tenn.) to serve as Chairman following the departure of former Congressman Michael McNulty (D-N.Y.). Final ratification of the leadership’s recommendations falls in the hands of the Democratic Caucus. “The 111th Congress begins during a time of historic opportunity and challenge,” House Ways and Means Chairman Charles Rangel (D-N.Y.) announced on his committee’s Web site. “We have already hit the ground running, and will continue working in the coming weeks, drawing on the knowledge and experience of our Members to develop a robust economic recovery package and tackle the challenges facing hardworking Americans today.” Leaders of both parties will continue to assign members to committee posts in the upcoming weeks. Please refer to the House and Senate Web sites (www.house.gov and www.senate.gov) for further updates on nominations and ratifications. LAWMAKERS PROPOSE LEGISLATION REPEALING GPO, WEP Lawmakers have reintroduced legislation calling for a repeal of the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP), two Social Security laws that reduce or eliminate benefits for a multitude of federal retirees. Representatives Howard Berman (D-Cali.) and Howard McKeon (R-Cali.) introduced the bill, H.R. 235, prepping the 111th Congress to once again engage legislation that has circled the Hill for years. GPO reduces the Social Security benefits received by the spouses and widows or widowers of federal employees who receive a government pension and did not contribute to Social Security. WEP affects the benefits afforded to federal retirees who receive both a government pension and Social Security benefits through work with a private employer. A Social Security Administration (SSA) analysis of the effects of the GPO and WEP measures determined that the pension offset affects roughly 465,000 retirees and beneficiaries, while WEP negatively impacts 972,000. The cost associated with the elimination of GPO and WEP has proven a debilitating impediment to the passage of legislation in past sessions of Congress, as SSA has placed a price tag of approximately $80 billion over a ten year period for full elimination. Legislative approval of H.R. 235 may hinge on the ability of lawmakers to offset the proposal’s significant financial cost. “If the 111th Congress is intent on moving forward with this legislation, now is the time to act,” Federal Managers Association (FMA) National President Darryl Perkinson commented. “Lawmakers cannot continue to deprive federal retirees, who have devoted their lives to public service, and their spouses of the benefits they deserve. We will push this Congress to take the necessary steps to ensure action is taken.” To view a copy of H.R. 235, please visit: http://thomas.loc.gov. DEMOCRATS’ CHANGES TO HOUSE RULES ANGER REPUBLICANS While Democrats and Republicans alike tout their desire to dispel with the acute partisanship that has characterized Congress in the past and contributed to a less than admirable level of public approval, both parties are already at odds concerning the adoption of House rules, H.Res.5, during the opening day of the 111th Congress. Several Republican lawmakers have voiced objections to new rules lifting the term limits of House committee chairmen while also opposing a policy restricting the ability of the minority party to offer alternative legislation. “President Obama has pledged to lead a government that is open and transparent,” House Republican leaders wrote in a letter to House Speaker Nancy Pelosi (D-Cali.) prior to approval of the rules. “This [rules package] does not represent change; it is reverting back to the undemocratic one-party rule and backroom deals that the American people rejected more than a decade ago. And it has grave implications for the American people and their freedom, coming at a time when an unprecedented expansion of federal power and spending is being hastily planned by a single party behind closed doors.” House Minority Leader John Boehner (R-Ohio) led calls for Democrats to reconsider their termination of the six-year term limits for House committee chairmen originally set in place by Republicans in 1995. The term limits were advanced as a means to prevent committee chairmen from accruing too much power while also rewarding innovation and performance versus length of tenure. House Republican leaders are also vehemently opposing new rules limiting the ability of the minority party to offer substantive revisions to critical legislation, a retraction of procedures afforded to Democrats during their twelve-year stint in the minority. Boehner and others warned that such a rule change could open the door for tax increases inserted into legislation proposed by the Majority. “This is not the kind of openness and transparency that President-elect Obama promised,” the letter to Pelosi concluded. “This change would deprive tens of millions of Americans the opportunity to have a voice in the most important policy decisions facing our country… Changing the House rules in the manner highlighted by recent media reports would have the opposite effect: further breaching the trust between our nation’s elected representatives and the men and women who send them to Washington to serve their interests and protect their freedom.” Pelosi challenged the Republican outcry, arguing that the rules changes still preserve powers in the minority but strengthen the ability of key legislation to move swiftly through the House. “The new Rules Package will preserve the Minority’s legitimate right to present their policy alternatives while preventing the abusive practice of working to kill key measures that have broad, bipartisan support from the American people by raising unrelated amendments for the sole purpose of scoring political points and forcing votes for electoral advantage,” according to Pelosi. Regardless of the specific issues at hand, the debate points to a continuation of the partisan divide that characterized the 110th Congress. To view a copy of the House rules, please visit: http://thomas.loc.gov. ************************************************************ WHAT’S NEW IN THE EXECUTIVE BRANCH? OPM ANNOUNCES 2008 FEDERAL HUMAN CAPITAL SURVEY RESULTS On January 8, the Office of Personnel Management (OPM) held a briefing to discuss the results of the agency’s 2008 Federal Human Capital Survey measuring federal employees’ perceptions regarding their work in the federal government. Hosted by Nancy Randa, OPM Deputy Associate Director, Center for Learning, Executive Resources, & Policy Analysis, the briefing presented data accrued through feedback from over 210,000 employees serving in 83 agencies. Though Randa stated that a thorough analysis of the results is pending feedback from parties set to receive the survey data, responses from engaged employees point to steady progress across the majority of issues relating to capacity for and commitment to the government’s mission. The survey, which OPM has conducted every other year since 2002, relies on federal employee responses to a set of questions regarding their experience in the civil service to determine the government’s progress in advancing human capital initiatives over a two-year span. In 2008, 29 of the President’s Management Council agencies and 54 small/independent agencies took part, with a 51 percent response rate for employees receiving the survey. The results reflect only full-time, permanent employee populations, as Randa explained the desire to accrue information from a consistent set of employees in terms of employment in the federal government. OPM found that 91 percent of respondents believe their work is important, with 84 percent understanding how their work directly impacts their respective agency’s goals and priorities. Roughly 75 percent of respondents said their work engenders a sense of personal accomplishment, the same percentage also arguing that the current workforce possesses the talent to fulfill their responsibilities. Many of the questions constructed by OPM allow for comparison with similar surveys conducted in the private sector, enabling OPM to understand how the federal government must adapt to attract and retain a highly skilled workforce. “This analysis of federal employees’ responses to the survey shows Federal employees want the same things in their workplaces as other talented individuals in a competitive job market,” the report explains. “Civil Servants want to feel their talents are being used well and are valued, they want opportunities to grow and advance, and they want strong leadership in the organization. Among those who report these conditions are present in their workplaces, satisfaction is highest and intent to leave is lowest.” There are many areas in need of significant improvement, Randa noted, including the willingness of agencies to place a greater emphasis on creativity and innovation while rewarding those employees who go above and beyond the mission. Only 30 percent of respondents indicated that poor performance is adequately addressed, with only 26 percent recognizing a link between performance and pay. While more individuals recognized such a link than in past surveys, this issue received the highest negative rating in the survey. Federal Managers Association National President Darryl Perkinson said of the results, “It is promising that agencies are putting the effort into advancing human capital issues, but the data OPM has received clearly points to areas that continue to lag behind workplace conditions in the private sector. As we compete each day to recruit and retain an unparalleled workforce, it is critical that agencies continue to improve in these crucial areas. It is my hope that the next survey OPM conducts indicates greater forward progress, but such a result will only manifest itself through extensive efforts to adapt workforce conditions to the needs of the employees who serve the public everyday.” To learn more about the report, please visit: www.opm.gov. MSPB REPORT CALLS MANAGERS’ SKILLS INTO QUESTION The Merit Systems Protection Board (MSPB) has determined that federal supervisors’ management skills fall far behind their own technical skills, according to a report constructed in September 2008.The report, entitled, “The Federal Government: A Model Employer or a Work in Progress?” based its findings on the Merit Principles Survey, a survey which has periodically collected data from federal employees since 1983. According to MSPB, while federal employees expressed greater satisfaction with their pay than in the past, supervisors did not receive the same approval, and in many instances, employees reported a diminishing level of faith in their managers’ ability to effectively govern the workplace. “Federal employees consistently reported that their supervisors’ technical skills outpaced their managerial skills,” MSPB Chairman Neil McPhie detailed in the report. “Accordingly, employees expressed little confidence in the ability of Federal supervisors to exercise personnel authorities fairly and effectively. Also, although differences in Federal employee opinion across lines of ethnicity and race have diminished, minority employees remained more likely to report experiencing unfair treatment or discrimination in the workplace.” Based on information gathered via the survey, the report breaks down employees’ opinions and evaluations of their respective supervisors into three categories: competence, communication, and performance management. MSPB analysis of the results determined that supervisors matter greatly in agency performance, accounting for 25 percent of an employee’s overall job satisfaction. This demonstrates supervisors’ influence and ability to recruit and retain a talented workforce. When employees were asked to evaluate their supervisors, however, a large gap between technical ability and managerial skills emerged, indicating a need for agencies to pay more attention to the management capabilities of prospective supervisors versus job performance as line employees. “S upervisors serve a vital role in organizations,” the report states. “Not only are they responsible for achieving organizational goals, but they are keys to managing employees in a manner consistent with the merit principles, whose requirements range from treating employees fairly and equitably to managing employees efficiently and effectively. Our analyses indicated that employees believe that their supervisor determines the amount of information that is shared and they hold him or her responsible, to some extent, for whether the workplace has an atmosphere of cooperation and teamwork.” “For supervisors, [the survey results] mean that effective supervision (e.g., demonstrating good technical and managerial skills, sharing information, dealing with poor performers, and fostering cooperation and teamwork) can improve job satisfaction and retention—not just productivity,” the report continues. “For agencies, it means that efforts to improve productivity and employee engagement must include supervisors in a significant and meaningful way that recognizes their vital role in employee performance and job satisfaction.” Important to note is that individual agencies carry significant weight in overall employee satisfaction, with survey results varying more across agencies than ethnic and race, gender, or age lines. MSPB argued that this, “ reinforces the importance of leadership, organizational culture, and human resources policy and practice within Federal agencies.” “The Federal Managers Association has been on the frontline of efforts to establish enhanced managerial training,” Federal Managers Association (FMA) National President Darryl Perkinson commented. “If Congress hopes to reverse the trend highlighted in the report by strengthening the supervisor-employee relationship, funds must be appropriated to equip managers with the tools and knowhow to effectively administer their staffs.” To view a copy of the report, please visit: www.mspb.gov. PERSONNEL SECURITY CLEARANCE DELAYS AT DOD STILL A RISK The Department of Defense (DOD), plagued for years by delays and incomplete documentation in the allocation of security clearances, is taking steps in the right direction in the authorization process, according to a preliminary report released by the Government Accountability Office (GAO) on December 19. The report, evaluating the clearance process in DOD since February 2008, details positive progress displayed by the Office of Personnel Management (OPM), the Office of Management and Budget (OMB), and DOD in reducing impediments delaying initial confidential, secret, and top secret personnel security clearances. Though explicit in classifying its findings as only an introductory discussion of progress made within DOD since GAO placed the department on its high-risk list in 2005, the report, entitled, “ DOD Personnel Clearances: Preliminary Observations about Timeliness and Quality,” GAO- 09-261R , found that over 80 percent of initial clearances were approved in 87 days or less, beating the government’s requirement under the Intelligence Reform and Terrorism Prevention Act of 2004, P.L. 108-458 , of an 80 percent approval rate in under 120 days. GAO warns, however, that DOD will most likely be unable to meet the government’s 2009 timeliness requirement, which states that DOD must implement a plan by December 2009 guaranteeing that 90 percent of initial security clearance determinations be resolved in no longer than 60 days on average. The Executive Branch is attempting to facilitate DOD and other agencies in meeting this stringent requirement through the establishment of the Joint Reform Team whose mission focuses on restructuring clearance processes. While GAO continues to express qualms with the clearance process, DOD has rebuffed many of the concerns, as the report notes. “In his comments to our briefing report the Under Secretary of Defense for Intelligence (USDI) stated that while our observations of the timeliness and quality of the DOD personnel security program are fair, DOD does not share some of the same concerns that we identified in our briefing report.” The effects of delays have far reaching consequences, according to GAO, which led to the placement of DOD on its high-risk list. Clearance delays lengthen the time that individuals, who may be ultimately denied in their request, hold interim security clearances, which require only a limited review of a subject’s background. GAO also estimates that 87 percent of investigative reports provided by OPM critical to the process of initial top secret clearances lacked at least one form of documentation required by federal investigative standards and OPM internal guidance. This has a snowballing effect, GAO noted, as adjudicators of future clearance requests may refer to past examples to determine the necessary documentation. The report was delivered to congressional committees invested in DOD’s security clearance process. A future analysis offering greater insight into the delays at DOD is expected in the near future. To view a copy of the report, please visit: www.gao.gov. CHCO REPORT DIRECTS OBAMA ON HUMAN RESOURCE ISSUES Office of Personnel Management (OPM) Acting Director Michael Hager announced the release of the 2008 Fiscal Year Chief Human Capital Officers (CHCO) Council annual report to Congress, detailing the report’s focus on aiding President-Elect Barack Obama and his future CHCOs as they address human capital issues facing the federal workforce. Discussing such topics as how to build and sustain federal employee leadership, the necessary evolution of the federal human resource (HR) profession, and managing the federal response to complex challenges, among other issues, this year’s report follows the efforts of the Bush administration to reach out to Obama and his team. "While past CHCO Council annual reports to Congress were summaries of activities within a given fiscal year, we believe providing a detailed guide to human capital issues facing the Federal workforce follows the course President George W. Bush has set of being as helpful as possible to the new Administration," Hager, who serves as chair of the 25-member CHCO Council, announced in the OPM press release. "Our hope is that those who will serve as Chief Human Capital Officers in the new Administration will use this document as a template for expanding and enhancing the influence and effectiveness of the Council." The CHCO Council and their annual report have proven invaluable tools in the federal human resources community, most recently receiving accolades for improving the federal hiring process through the creation of the End-to-End Hiring Roadmap. Serving the federal community for five years, the Council continues to expand its influence and visibility, relying on the experience and expertise of its members to advance their mission. Input gathered during CHCO Council Transformation Summits held in September 2007, June 2008, and September 2008 provides the backbone of the 2008 annual report outlining the direction the current Council pictures for the group’s future success. “Over the past five years, the Council has made tremendous strides in improving cross agency collaboration within the Federal HR community,” the report states. “Several key contributing factors enabled the Council to expand its impact, including (1) adding Deputy CHCOs to the Council; (2) establishing and tracking subcommittee goals; (3) identifying and sharing human capital practices; and (4) staffing the Council,” which, “have helped the Council evolve and position itself to address the upcoming challenges.” To view a copy of the report, please visit: www.chcoc.gov. SSA ADOPTS HEALTH NETWORK TO IMPROVE DELIVERY OF SERVICES The Social Security Administration (SSA) announced plans to employ the Nationwide Health Information Network (NHIN) in an effort to expedite the process of organizing disability applicant medical records. SSA will become the first government agency to utilize NHIN, a secure, nationwide interoperable health information infrastructure that connects providers, consumers, and others involved in supporting health and healthcare. Application of the program is scheduled for early 2009, and SSA Commissioner Michael Astrue is optimistic the agency’s delivery to the public will benefit substantially. “Social Security is proud to be a leader in the use of health information technology,” Astrue commented in a press release announcing proposed adoption of the system. “This safe and secure method for receiving electronic medical records will allow us to improve our service to the public by cutting days, if not weeks, off the time it takes to make a disability decision.” SSA relies on individual medical records when processing the over 2.6 million disability claims the agency receives each year. NHIN, a Department of Health and Human Services (HHS) program supported by multiple government agencies and private sector entities, allows medical professionals to submit records in a more efficient and timely manner, affording SSA instantaneous access to critical information. For more information on SSA’s projected implementation of the network, please visit: www.ssa.gov. ************************************************************ GET INVOLVED AT THESE EVENTS! FMA ZONE 1 CONFERENCE READY TO GO IN NEW JERSEY The Federal Managers Association Zone 1 will be holding its annual conference at the Pier 4 Hotel in Somers Point, NJ, from January 30 – February 1, 2009. Registration for the conference is set at $30 per delegate, and the FMA room rate will be $70. Hotel reservations can be made by calling 1-888-927-9141. Please be sure to mention you’re with the FMA Zone 1 Conference. Contact Zone 1 President Mike Donovan with any questions or for more information at donovanme@aol.com. Please keep checking back with us online at www.fedmanagers.org for up-to-date information. HUMAN CAPITAL MANAGEMENT SYMPOSIUM: DEFENSE 2009 The Premier Defense Symposium on Human Capital Management The Human Capital Management Defense Symposium (HCMD), February 26-29, 2009, in Arlington, Virginia, is critical to your success in strategically managing human capital. Learn how senior leaders are developing the right mix of skills across the total force, aligning skills to requirements, and addressing competency gaps. Attend HCMD to gather best practices in the recruitment and retention of quality personnel and learn about exciting workforce development initiatives across DOD. FMA is an official cosponsor of this conference. For more information, please visit: www.hcmd2009.com. REGISTER TODAY FOR FMA’S 71 ST ANNUAL NATIONAL CONVENTION! Early Bird Registration Ends on January 23: Sign Up Now! Registration is now available for the Federal Managers Association’s 71st annual National Convention and Management Training Seminar. Held March 16-19, 2009, the Convention will feature a mix of association business, management training and FMA’s annual lobbying day, Day on the Hill. Management training topics include managing through the presidential transition, engaging leadership, employee management and the Hatch Act. Early bird registration is available through January 23, 2009. For more information or to register, please visit: http://www.fedmanagers.org/public/events.cfm. ************************************************************ Long Term Care Partners, LLC , FMA Corporate Partner. Long Term Care Partners is the administrator of the Federal Long Term Care Insurance Program. Sponsored by the U.S. Office of Personnel Management, the Program is available to Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives. With more than 210,000 enrollees, it is the largest employer-sponsored long term care insurance program in the country. FLTCIP policies are simple to understand and offer enrollees some distinct advantages, including comprehensive coverage, competitive and stable rates, international coverage, and administrative service standards that are the highest in the long-term care insurance industry. Policies are sold direct through a highly-trained, non-commissioned staff with no high pressure sales tactics – simply sound advice. Visit www.LTCFEDS.com or http://www.opm.gov/insure/ltc/index.asp for more information. FSAFEDS, the Federal Flexible Spending Account Program, FMA Corporate Partner. FSAFEDS provides consumers and corporations a single source of health management decision guidance through its integrated suite of consumer-driven healthcare solutions. Its innovative consumer experience offers comprehensive care, planning, spending, productivity and strategic management services that help guide participants to be healthier and more productive. Visit www.fsafeds.com for more information. Blue Cross Blue Shield Association Federal Employee Program, FMA Corporate Partner. The Blue Cross and Blue Shield Association represents the independent, locally operated Blue Cross and Blue Shield plans. The 40 local member companies of the Blue Cross and Blue Shield Association have provided millions of families with top-quality, affordable health insurance for more than 70 years. For the one in four Americans who carry Blue Cross and Blue Shield cards, the Blue Plans symbolize health security. Visit www.fepblue.org and join the best, most-recognized group of health insurance providers in the world. GEICO, FMA Corporate Partner. GEICO was created over 60 years ago to insure Federal employees. Over the years GEICO has continuously strengthened its affiliation with the Federal workforce. GEICO’s Federal program supports the GEICO Public Service Awards, which have honored federal workers (active and retired) who have contributed to the public good since 1980. Find out how much you could save with GEICO auto insurance as an FMA member by getting a quick, line-by-line rate quote at http://www.geico.com/landingpage/go51.htm?logo=00781. When you request a quote, GEICO will make a contribution to support the work of FMA. Shaw, Bransford, Veilleux and Roth, P.C. SBVR concentrates its law practice on the representation of Federal employees, with a special emphasis on the representation of executives and managers. SBVR serves as General Counsel to the Federal Managers Association and is uniquely situated to recognize the interests and viewpoints of Federal managers. For up to two free half-hour legal consultations and reduced legal fees as an FMA member, please visit: www.shawbransford.com. FEDS (Federal Employee Defense Services) provides premier professional liability insurance benefits to the federal employee community. The FEDS liability insurance policy costs only $270 a year, and if you are a manager, supervisor, or law enforcement officer, your agency will reimburse you up to ½ of the cost. Your net cost would be $135 per year. FEDS provides federal employees with the protection they need to do their jobs. You simply can’t afford not to have it! SPECIAL OFFER: Three months free when you make the switch from another federal employee professional liability program. To learn more, visit: http://www.fedsprotection.com. Be sure to note your FMA membership when you join FEDS. The Federal Managers Association and Management Concepts have teamed up to present the Federal Managers Practicum — a targeted certificate program for Federal managers. As the official development program for FMA, the Federal Managers Practicum helps FMA members develop critical skills to meet new workplace demands and deepen their managerial capabilities. Also, FMA members receive 20% off any book purchase and each book is guaranteed to win you a promotion! For more Practicum information, click here. For a catalog of discounted publications, go to Management Concepts. To order, call Vanessa Gillette at 703-270-4107. ID Theft Assist untangles the red tape of identity recovery. Should you have an identity compromise, even something as simple as a lost wallet or purse, our 24-hour emergency assistance center is there to serve you with a wide range of services that leaves the work to us and takes the burden off you. 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The Washington Report is published biweekly by the
Federal Managers Association.
Jessica Klement, Editor; FMA Staff Writers.
The Federal Managers Association, established in
1913, is the oldest, largest, most influential association representing
the interests of the nearly 200,000 managers, supervisors and executives
serving in today’s Federal government.
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