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Federal Managers Association

Washington Report

February 23, 2009

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Untitled Document

FMA WORKING FOR YOU!

FMA EFFORT SPURS INTRODUCTION OF FERS SICK LEAVE CREDIT

With the support of the Federal Managers Association (FMA), Congressman James Moran (D-Va.) once again introduced legislation which would credit civil servants enrolled in the Federal Employees Retirement System (FERS) for unused sick leave at the time of retirement. The bill, H.R. 958, would enable FERS employees to receive service credit in the computation of their annuities for accrued leave, a benefit currently afforded to their Civil Service Retirement System (CSRS) counterparts. Moran’s efforts follow a failed attempt to pass similar legislation contained in the Family Smoking Prevention and Tobacco Control Act, H.R. 1108, during the 110th Congress.

Since passage of the Federal Retirement Reform Act of 1985, all federal employees hired after 1984 are covered under FERS, and unlike CSRS employees, they do not receive credit for unused sick leave upon retirement. A recent survey of federal employees enrolled in these two systems found that 85 percent of CSRS employees said they conserved as much sick leave as possible while 75 percent of FERS employees said they would use as much as possible during their last years of service. The Office of Personnel Management currently estimates this problem costs taxpayers $68 million a year.

“FERS ‘use-it or lose-it’ system for sick leave hampers productivity and increases training costs,” Moran stated upon introduction of the bill. “We need to be incentivizing the accrual of sick leave, not encouraging employees to call in sick in the weeks leading up to retirement.”

Fellow Representative Frank Wolf (R-Va.) issued his support for the measure as well, and the pair are confident that a bipartisan approach to establishing parity between FERS and CSRS employees will advance this critical legislation through the House.

“The cost of sick leave used by federal employees continues to rise, and the loss of productivity becomes more apparent as there is no incentive for FERS employees to conserve sick leave,” FMA National President Darryl Perkinson said in a statement appearing in Moran’s press release announcing the proposal. “By placing a value on sick leave, FERS employees are encouraged to use their leave responsibly.”

For more information on the FERS Sick Leave Equity Act, H.R. 958, please visit: http://thomas.loc.gov.

FMA GEARS UP FOR 71st ANNUAL NATIONAL CONVENTION

On Monday, March 16, the Federal Managers Association (FMA) will kick off its 71st annual National Convention and Management Training Seminar, entitled, Transitions in Government: Rising to the Challenge, in Arlington, Virginia. Featuring a host of distinguished speakers and engaging instructional programs, the Convention will provide attendees with an abundance of information regarding the work of the Association while offering the critical training necessary to effectively manage in today’s government. With several events geared towards reaffirming membership priorities and enhancing legislative advocacy, this year’s Convention will provide delegates the tools to succeed amidst the challenges facing the federal workforce.

House Oversight and Government Reform Ranking Member Darrell Issa (R-Cali.) will get the event underway with a keynote address on Monday.

“We are extremely excited to have some of the most talented and knowledgeable individuals invested with the development of government on hand to discuss issues of critical importance with our members,” FMA National President Darryl Perkinson commented. “It is not often that such an experienced cast of government leaders come together under one roof, and FMA will certainly benefit through insightful dialogue with these individuals.”

On Tuesday, March 17, FMA will host a Management Training Seminar featuring workshops offering techniques on managing through the presidential transition, engaging leadership, motivating employees to produce results, and participating in politics in accordance with the Hatch Act. Partnership for Public Service President and CEO Max Stier will deliver the keynote address before the training workshops. Committed to stimulating the federal government through increased attention on the role of civil servants, the Partnership is a fitting organization to kick off FMA’s day of training. The Seminar is open to all federal employees and registration is available at: www.fedmanagers.org.

FMA members will have a chance to visit with their Representatives and Senators on Wednesday, March 18, as part of FMA’s annual Day on the Hill. The event affords delegates the opportunity to bring FMA’s concerns and legislative priorities up to Capitol Hill and engage their government leaders and decision-makers in discussions on promoting excellence in public service and government management. FMA-PAC will host an informal evening reception after the delegates return from their day of advocacy.

On the final day, Thursday March 19, FMA will feature a seminar directed towards managing and retaining the new generation of civil servants, hosted by Rayshad Holmes, Ph.D., Director of Human Resources Development at the Department of Veterans Affairs. The Convention will conclude with a membership awards luncheon.

To register for the National Convention, the Management Training Seminar, or for more information on the event, please visit FMA online at www.fedmanagers.org.

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WHAT’S HAPPENING ON CAPITOL HILL?

SENATE PRESERVES TAX EQUITY MEASURE FOR FEDERAL RETIREES

The federal stimulus package originally proposed by the Senate included a provision, entitled Make Work Pay, which would have provided Social Security, Veterans, Supplemental Security Income and Railroad Retirement beneficiaries with an additional $250 one-time payment from the government. The Senate, however, initially failed to extend this benefit to federal retirees, namely a large percentage of Civil Service Retirement System (CSRS) retirees. Through the work of Senators John Kerry (D-Mass.) and Max Baucus (D-Mont.), lawmakers rectified this inequity in the final package (P.L 111-5) signed by President Barack Obama, providing these formerly excluded civil service annuitants with a $250 refundable tax credit for 2009.

“I applaud Senators John Kerry and Max Baucus for their efforts on extending this credit to these employees who have devoted themselves to public service,” Federal Managers Association President Darryl Perkinson commented. “The commitment to ensuring equity in the civil service displayed by these legislators is truly appreciated by FMA and the entire federal community.”

For more information on the Make Work Pay provision, please visit: http://thomas.loc.gov.

CONTROVERSIAL E-VERIFY PROGRAM REMOVED FROM FINAL STIMULUS

In an effort to engender greater support for the federal stimulus package signed by President Obama last week, Senate and House lawmakers removed a contentious stipulation originally contained in the bill ( P.L. 111-5 ) that would require businesses to verify the work-status eligibility of potential employees through Department of Homeland Security (DHS) and Social Security Administration (SSA) databases. The inclusion of the E-Verify system, as the online immigration certification program is called, provoked outrage from businesses and immigration groups alike, which cited long delays and complications associated with the verification process as justification for its removal from the bill.

House Judiciary Committee Ranking Member Lamar Smith (R-Tex.) served as the lead voice in opposition to the removal of the certification system, arguing that E-Verify protects jobs for U.S. citizens and immigrants that have legally established themselves in the country. Smith referred to application statistics that confirm the system accurately verifies the eligibility of over 99 percent of employees, noting that removal of the provision could potentially provide jobs for over 300,000 illegal immigrants.

“It is a simple matter of accountability,” Smith said. “If the goal is to create jobs and stimulate the American economy, then is it too much to ask that the jobs go to U.S. citizens and legal immigrant workers? American jobs continue to disappear at a staggering rate, and 11.6 million Americans are now out of work.  At the same time, according to the most recent estimates from the Pew Hispanic Center, seven million jobs are held by illegal immigrants.”

The final stimulus measure retained language limiting the amount of funds available under the Troubled Asset Relief Program available to companies hiring skilled foreign workers. The Senate added the language to require businesses to employ U.S. workers when available and bar the hiring of foreign workers to replace Americans.

For more information on E-Verify, please visit: www.uscis.gov.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

PENTAGON RELEASES 2009 NSPS PAYOUT FIGURES

According to figures released by the Pentagon on February 18, over 98 percent of employees enrolled in the Department of Defense’s (DOD) pay-for-performance personnel system received a boost in pay based on appraisals of their efforts over the past year. The 170,000 employees evaluated under the National Security Personnel System (NSPS) received an average rating of 3.46 on a 5 point scale, identifying the typical DOD civil servant as a valued employee. Anyone rated a 3 or above received a performance-based payout with the average salary plus bonus increase totaling 8.35 percent.

Over 55 percent of employees received a rating of 3, corresponding to the classification of “Valued Performer.” Rating officials identified 38 percent of employees as those who “Exceed Expectations,” coinciding with a rating value of 4. Fewer than five percent of employees were awarded a rating of 5, designating them as “Role Models.” Each of these three categories corresponds to a separate performance-based payout.

Of the 8.35 percent average pay increase, 6.41 percent came in the form of a typical raise, with 1.94 percent distributed as a one-time bonus. In 2009, former President George Bush approved an average pay raise of 3.9 percent for General Schedule (GS) employees: 2.9 percent across the board with 1 percent reserved for locality pay.

“On the surface, an 8.35 percent average pay raise is something to get excited about,” Federal Managers Association National President Darryl Perkinson stated. “However, we must be cautious of the further breakdown of these ratings when that information becomes available. I look forward to working with DOD to ensure employees are properly compensated under NSPS.”

The Pentagon’s release of the data comes amidst calls from lawmakers and groups representing federal employees to re-examine NSPS before DOD converts any more employees into the system. The Office of Personnel Management also recently announced its assessment of DOD’s implementation of the controversial personnel program to date. The Obama administration has made clear its intentions of reevaluating NSPS in the near future, suggesting the system may be scrapped completely.

To view the latest NSPS evaluation figures, please visit: www.cpms.osd.mil/.

LAWMAKERS CALL FOR HOLD ON NSPS, OPM LAUDS SYSTEM

Democratic leaders of the House Armed Services Committee requested the Department of Defense (DOD) cease the conversion of federal employees into the Department’s National Security Personnel System (NSPS) until lawmakers are afforded the opportunity to conduct a thorough cost-benefit analysis of the controversial pay-for-performance program. In a letter delivered to Defense Secretary Robert Gates on February 13, Chairman Ike Skelton (D-Mo.) and Representative Solomon Ortiz (D-Tex.), Chairman of the Readiness Subcommittee, argued that the extensive frustration and apprehension prevalent amongst DOD personnel employed under the system necessitated further review before the Department engaged in additional enrollment efforts.

“The National Security Personnel System of the Department of Defense made wholesale changes to the current federal employee system, resulting in widespread distrust and discontent within the ranks of the hundreds of thousands of dedicated DOD employees, both among those who have been converted and those who have not yet been converted to NSPS,” the letter read. “Recent reports from both the Government Accountability Office and the Congressional Budget Office highlight concerns over the cost of NSPS versus its benefits as well as the lack of transparency in the new system and the negative impact on employees.”

President Barack Obama previously announced his intentions to either repeal NSPS entirely or conduct a systematic overhaul of the program, and lawmakers urged Gates to place a hold on further conversions to allow the administration and Congress to accurately asses which mode of action would most benefit the Department and the employees responsible for its success.

In a report released on February 11, however, the Office of Personnel Management (OPM) found that DOD has demonstrated marked improvement in all five areas the agency observes to evaluate the merit of NSPS. According to the report, which documents implementation of NSPS since May of 2007, DOD established significant advances in the progress dimensions of mission alignment, results-oriented performance culture, workforce quality, equitable treatment, and plan execution. The report cited improved transparency, strong senior leadership support, equitable oversight, and the establishment of trust between employees and supervisors as key components of DOD’s strides to date. OPM cautioned, however, that while the report highlights many of the achievements associated with NSPS since 2007, successful implementation of such a system hinges on the feedback of employees and officials engaged in the program.

“DoD has built a strong implementation foundation which includes the Program Executive Office (PEO) and a component level NSPS support structure that enables a consistent approach across components and from spiral to spiral,” the report stated. “However, change of this magnitude requires a significant shift in culture for employees and managers to fully embrace the new flexibilities and benefits of a performance-based compensation system. For that reason, we recommend DoD continue to focus on agency-wide issues and share lessons learned across components. We also recommend DoD emphasize the importance of change management as an enabler to successful technical transition and respective culture change.”

Whether or not officials charged with implementing NSPS will be given the opportunity to expand on the progress detailed by OPM depends on Secretary Gates’ response to lawmakers’ calls for a halt on further conversion and the Obama administration’s adherence to its promise to address the program.

To view a copy of the letter, please visit: http://armedservices.house.gov.
To view a copy of OPM’s report, please visit: www.opm.gov.

GAO IDENTIFIES KEY CHALLENGES FACING SSA

Roughly 44 million individuals relied on the Social Security Administration (SSA) for a host of services in fiscal year 2008, but a report recently released by the Government Accountability Office (GAO) identifies key challenges facing the agency that may detract from its delivery of services in the near future. Despite internal efforts to boost performance through reorganization while relying on fewer resources, SSA’s staffing constraints and budgetary restrictions, coupled with the demands of an aging population of baby boomers, necessitate the formation of a service delivery plan to outline future operations, according to GAO. The goal of such a plan is to identify how and where SSA should divert its limited resources to mitigate the agency’s expanding workload.

SSA predicts that 44 percent of its workforce will retire by 2016, compounding a dilemma plaguing an agency which already experienced a 4.4 percent decrease in field staffing from 2005 to 2008. As SSA estimates the number of disability claims to rise by nearly 1 million over the next eight years, the agency recognizes that current operations will fail to match the demand for services in the upcoming years. In response, SSA has issued its commitment to developing an intensive plan of attack based in large part on recommendations contained in the GAO report.

According to the report, understaffing has contributed significantly to slower customer service and may be responsible for a 3 percent decrease in overall customer satisfaction between 2005 and 2008. GAO and SSA disagree, however, in discussions to establish set standards for customer wait time, with SSA arguing development of concrete standards would divert critical resources from other functions within the agency. GAO also notes it is at odds with planning efforts established by SSA in September of 2008, citing dissatisfaction with the agency’s clarity in divulging just how additional resources may be used to boost service in the future. Still, both parties agree that development of a strategy that seeks to enhance electronic services and improve field office operations should serve as a backbone for future reorganization efforts.

“While SSA has taken action to manage its workload with fewer staff, the broader challenge of providing nationwide field office service remains,” the report states. “Although customers expect to be served in a reasonable amount of time and have their phone calls answered, field offices are deferring certain work, customers are waiting longer to be served, and staff feel stressed.”

The Federal Managers Association has long advocated for adequate resources for SSA. In fiscal year 2008, SSA finally received adequate appropriated funds to help meet its needs. In the ten years prior to FY08, SSA received $1.3 billion less than the President requested. Undoubtedly, SSA is currently struggling due to these years of underfunding.

“It is essential that SSA manage its increasing workload through strong planning efforts,” GAO continued. “SSA’s strategic plan is a strong first step with its acknowledgment of growing work demands and budget constraints…. SSA’s new strategic plan indeed seeks to address these problems, but it is not clear if SSA’s plan for greater reliance on online retirement filings will, by itself, be sufficient. Whether SSA will need more resources or an altered field office infrastructure, or both, is unclear. A detailed service delivery plan should make this clear, and if additional resources are needed to achieve agency wide goals, SSA should identify the resources required to meet long-term service delivery needs.”

To view a copy of the report, GAO-09-24, please visit: www.gao.gov.

COUNCIL FOR EXCELLENCE IN GOVERNMENT ENDS 25-YEAR RUN

On February 9, the Partnership for Public Service (PPS) announced it will assume control of many of the programs currently underway at the Council for Excellence in Government (CEG) in an effort to augment its own operations while consolidating government reform resources. The Council, which aimed to create stronger public sector leadership and management for the past 25 years, announced at the same time its intentions to cease operations as of February 16.

“We have great confidence that the Partnership can oversee and operate these programs. This transition will allow our employees to continue their important work,” said John Macomber, Chair of the CEG’s Board of Trustees. “We are delighted these programs will live on and are confident they will thrive under the Partnership’s leadership.”

The CEG’s Excellence in Government Fellows Program (EIG Fellows) will be among several programs maintained under the Partnership’s oversight. EIG Fellows, considered the Council’s premier offering, enhances leadership and managerial expertise through a results-based development program. Over 2,700 civil servants have benefited through enrollment in the training series. The Partnership will also oversee the Council’s Senior Advisors to Government Executives (SAGE) program, which connects former federal executives with incoming and current government leaders. Additionally, the Partnership will assume oversight of the Public Employees Roundtable, of which the Federal Managers Association is a member.

“Making government work better has never been more important as Americans look to President Obama and his administration to rejuvenate a sluggish economy, navigate two wars, improve education and more,” said PPS President and CEO Max Stier in the announcement. “We are proud to continue the important work the Council for Excellence in Government started and believe that by consolidating our efforts we will be better able to make government more effective.”

For more information on the Partnership for Public Service, please visit: www.ourpublicservice.org.

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GET INVOLVED AT THESE EVENTS!

HOTEL DEADLINE EXTENDED FOR FMA’S 71st NATIONAL CONVENTION!
Hotel reservations now available through February 28th!

Registration is still 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. For more information or to register, please visit: http://www.fedmanagers.org/public/events.cfm.

To receive the special FMA room rate of $188/night, please call the Doubletree Hotel, Arlington, Virginia, at (703) 416~4100. Make sure to ask for the special FMA rate!

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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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