Federal Managers Association

As the Association seeks to build on its momentum resulting from the very successful 71st annual Convention, please visit our Web site on a routine basis to remain informed and up to date on the latest FMA news: www.fedmanagers.org.

FMA TESTIFIES ON SOCIAL SECURITY DISABILITY CASE BACKLOG

Federal Managers Association (FMA) Chapter 275 immediate past President James Fell presented testimony on the Association’s behalf during a joint hearing to discuss strategies to eliminate the current disability hearing backlog impeding the Social Security Administration’s (SSA) delivery of needed services to the American public. Presented before the House Ways and Means Subcommittees on Social Security and Income Security and Family Support, Fell’s testimony offered insight into the challenges facing SSA’s Office of Disability Adjudication and Review (ODAR) and the steps Congress should take to ensure the agency affords taxpayers the level of service they expect and deserve.

Fell, a Hearing Office Director in the Cincinnati, Ohio, ODAR office and a 38-year member of the civil service, expressed his experience as a SSA employee charged with guiding operations in his office. With over 765,000 pending requests for hearings to determine the allocation of disability benefits, Fell explained, Congress must place more attention on assisting SSA in acquiring the tools necessary to process these cases. Through timely passage of budgets offering adequate funding, he continued, Congress can equip ODAR with the staffing levels and resources necessary to streamline processing and reduce the growing backlog.

“As managers within ODAR, we are acutely aware of the impact this backlog has on our ability to deliver a level of service the American public deserves,” Fell told the subcommittees. “I appeared before the Subcommittee just two years ago and I am here once again to reconfirm that the backlog of cases is a result of the ongoing lack of adequate staffing levels and resources. The underfunding of the agency by Congress over the last decade has worsened the situation. Several years of untimely budgets further compound the problem. If these delays and inadequacies continue, clearing the disability case backlog will be impossible.”

The hearing, also featuring SSA Commissioner Michael Astrue, constituted the third discussion FMA has held with Congress over the past two years concerning the disability backlog facing ODAR. Fell presented testimony before the Subcommittee on Social Security in February of 2007, while Chapter 275 Principal Executive Officer Kathy Meinhardt appeared before the Subcommittee to address the same subject in September of 2008. While the theme of the testimonials remained consistent, emphasizing the need to increase funding to secure greater staffing and resources, the urgency of the matter has increased significantly due to the devastating effect of a continuing resolution (CR) which funded the agency for the first six months of fiscal year 2009.

“Recognizing the needs of SSA, Congress appropriated $126 million above President Bush’s FY09 request,” Fell continued. “Unfortunately, we operated under a CR for the first six months of the year and as a result, ODAR endured hiring limitations. Continuing resolutions have become the norm rather than the exception and it is significantly hindering our ability to get the job done. In order for funds to be properly spent, budgets must be implemented by October 1st. Not doing so ties the hands of our already beleaguered organization.”

In addition to the three testimonials provided before the Ways and Means subcommittees, FMA submitted an additional four statements for the record to both the House and the Senate during the 110th Congress on the matter.

To view a copy of the testimony, please visit FMA’s Web site at: www.fedmanagers.org. For more information on the hearing, please visit: http://waysandmeans.house.gov/.

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WHAT’S HAPPENING ON CAPITOL HILL?

HOUSE BUDGET COMMITTEE PUSHES PAY PARITY

The House Budget Committee is standing by over 20 years of legislative precedent in pushing for pay parity between civil servants and their military counterparts in the fiscal year 2010 budget resolution (H.Con.Res. 85). Through the inclusion of this language, Congress has once again issued its commitment to reward all of those who serve the interest of the nation in the federal government.

Representative Gerry Connolly (D-Va.) led the charge for parity in the FY10 budget, though he did not specify what the pay raise should total. By law, members of the military must receive at minimum the average wage and salary raise offered to private sector employees, as calculated by the Labor Department’s Bureau of Labor Statistics Employment Cost Index. This amount totaled 2.9 percent, which President Obama proposed for members of the military in his budget request. Members of the civil service are not covered under this mandate and therefore are not guaranteed the same salary appreciation, and Obama proposed a 2 percent raise for civilian federal employees.

Chairman of the House Budget Committee John Spratt (D-S.C.) echoed Connolly ’s support of pay parity, both stating their objections to a raise that would fail to reward both sectors of public servants equally. The Senate Budget Committee has also passed its version of the budget resolution (S.Con.Res. 13), but was silent on the pay parity issue.

“I am very pleased to hear that the House has decided to heed FMA’s calls and reward civilian federal employees in the same manner as their military counterparts,” Federal Managers Association National President Darryl Perkinson announced, “and it is now up to the Senate to follow suit. This nation is in the midst of very tough economic times, and it is vitally important that we make the message clear we value the critical work conducted by members of the civil service each day. It is my goal to ensure these individuals receive the recognition they deserve.”

In 2009, civilian federal employees enjoyed a congressionally approved pay raise totaling 3.9 percent and on par with the military, one percent of which was reserved for locality pay.

For more information on the House and Senate Budget Committees’ proposal, please visit: http://budget.house.gov and http://budget.senate.gov/.

FERS SICK LEAVE LEGISLATION ADVANCES THROUGH COMMITTEE

Congressman Henry Waxman’s (D-Cali.) Family Smoking Prevention and Tobacco Control Act of 2009, which contains provisions establishing a sick leave credit for employees enrolled in the Federal Employee Retirement System (FERS) and easing the ability of former FERS employees to return to civil service, passed two committee’s of jurisdiction, setting the bill up for a floor vote in the House. Both the House Oversight and Government Reform Committee and the House Energy and Commerce Committee approved the bill, H.R. 1256, though a timetable for its introduction on the House floor has yet to be set.

The FERS sick leave provision contained in the bill would provide FERS employees with a service credit in the computation of their annuities for any unused sick leave at the time of retirement. This would place these employees on par with their Civil Service Retirement System (CSRS) counterparts. Currently, FERS employees receive no credit for unused sick leave, promoting a use it or lose it system the Office of Personnel Management estimates costs taxpayers $68 million per year in terms of lost productivity.

Congressman Waxman’s bill also contains legislation that would allow FERS employees who leave the federal government to redeposit their cashed out annuities if they seek reentrance in the civil service. For purposes of determining annuity benefits, these employees will not have lost credit for previous years of service, as opposed to being considered at year one when returning to the government after time in the private sector. Both the FERS sick leave and redeposit legislation were first introduced as stand-alone measures by Congressman Jim Moran (D-Va.).

The House Oversight and Government Reform Committee also attached an amendment to the bill before passage that would offer CSRS employees working part time a prorated credit which would count towards the calculation of their retirement annuity. This provision ends the current penalties for CSRS employees who work part time towards the end of their careers.

“We are strongly encouraged by the action Congressman Waxman’s bill has received to this point, but we will not sit on our laurels as the bill works its way through the House,” Federal Managers Association National President Darryl Perkinson affirmed. “We must ensure that this bill receives swift House approval then work with members of the Senate to establish the legislation as law. Our valued members of the civil service, both FERS and CSRS employees, deserve these benefits, and FMA will continue to strive to represent their interests in the halls of Congress.”

To view a copy of the Family Smoking Prevention and Tobacco Control Act of 2009, please visit the Library of Congress Web site at: http://thomas.loc.gov.

HAWAII SENATOR CALLS FOR MANDATORY MANAGERIAL TRAINING

Senator Daniel Akaka (D-Haw.) introduced legislation last week requiring federal agencies to provide all managers with enhanced training geared towards developing supervisory and overall leadership skills, awareness of prohibited personnel practices and understanding of employee rights. The Federal Managers Association (FMA), as a member of the Government Managers Coalition, played a key role in developing a similar bill with Senator Akaka and his staff during the 110th Congress, S. 967, which passed the Senate Homeland Security and Governmental Affairs Committee but saw no further action.

“The performance of our federal employees and managers is essential to the success of our government. We will do well to invest in them through training and professional development,” said Sen. Akaka, who serves as Chairman of the Homeland Security and Governmental Affairs Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia.

The Federal Supervisor Training Act (S.674), introduced on March 24, consists of three primary training components: basic managerial training, mentorship training, and training focused on whistleblower, collective bargaining and anti-discrimination rights. The bill would require new federal managers and supervisors to engage in initial training within the first year of promotion, followed by mandatory training updates every three years. Managers would also receive mentoring support while developing their own mentorship skills to assist future rising managers.

“Given the growing number of federal managers who are eligible to retire, it is increasingly important to train new supervisors to manage effectively,” Akaka stated. “Good leadership begins with strong management training.  It is time to ensure that federal managers receive appropriate training to supervise federal employees.”

For more information on the Federal Supervisor Training Act, please visit: http://thomas.loc.gov.

SENATE BILL SEEKS TO RECRUIT FEDERAL RETIREES BACK TO SERVICE

Legislation introduced March 18 by Senators Herb Kohl (D-Wis.), Susan Collins (R-Me.) and George Voinovich (R-Ohio) would authorize federal agencies to reemploy retired civil servants on a limited basis, without forcing these employees to take reductions in salary corresponding to their retirement annuities. The Part-Time Reemployment of Annuitants Act of 2009, S. 629, constitutes a key step in mitigating the loss of employees to retirement as agencies prepare to implement many of the programs contained in the Obama administration’s economic stimulus efforts.

Federal employees seeking a return to service following retirement are currently penalized in the form of a pay reduction to offset their federal retirement annuity. The legislation wouldauthorize federal agencies to reemploy retired civil servants, with a cap placed on the amount of hours they are eligible to work, without forcing a reduction in salary. Reemployment would be limited to 520 hours in the first six months following retirement, and 1,040 hours in any 12 month period. Reemployed annuitants would be able to contribute a total of 3,120 hours of service before any offset to their annuity occurs. While the individual would receive both salary and annuity payments, they would not be considered employees for the purposes of retirement and would receive no additional retirement benefits based on their service.

The bill also mandates that agencies fill no more than 2.5 percent of their workforce with these individuals, and any agency exhibiting a workforce consisting of over one percent reemployed annuitants would be required to file a report to the Senate Homeland Security and Governmental Affairs Committee, the House Oversight and Government Reform Committee, and the Office of Personnel Management detailing the appointments. The bill contains a clause that would conclude the hiring benefit five years after enactment, calling for a review of the program within three years of enactment by the Government Accountability Office and establishment of a corresponding report to be delivered to the Senate Homeland Security and Governmental Affairs Committee and the House Oversight and Government Reform Committee.

“As the President continues to establish programs that depend on the skill of the civil service to properly implement, it is critical that we provide the proper incentives to bring these valuable members of the civil service brimming with institutional knowledge back into the fold,” said Darryl Perkinson, Federal Managers Association National President. “I commend the sponsors of this legislation for determining that it is in the best interest of the American people to encourage these individuals to lend their mentorship and expertise in the service of our nation.”

To view a copy of the Part-Time Reemployment of Annuitants Act of 2009, please visit the Library of Congress Web site at: http://thomas.loc.gov.

HOUSE, SENATE REINTRODUCE TELEWORK FLEXIBILITY BILL

Lawmakers in the House and Senate introduced legislation last week which would expand telework opportunities available to federal employees through the establishment of a standard government-wide policy on the flexibility initiative. Cited as a critical recruiting and retention tool in the federal government’s pursuit of the best and brightest workforce, telework affords employees the opportunity to conduct their duties from locations outside of their central offices via remote connections. Despite the apparent benefits expansion of this program entails, similar legislation introduced in the 110th Congress failed to become law.

Sponsored by Representatives Gerald Connolly (D-Va.), Frank Wolf (R-Va.) and John Sarbanes (D-Md.) and Senators Daniel Akaka (D-Haw.) and George Voinovich (R-Ohio), the Telework Improvements Act of 2009, H.R. 1722/S. 707, sets a series of parameters agencies must adhere to in the implementation of telework initiatives. Establishing the Office of Personnel Management and the Government Accountability Office as the primary bodies of oversight and telework data compilation, the Act emphasizes the need for agencies to adapt to an evolving workforce and embrace a workplace flexibility program already available on a limited scale.

“As the author of the current telework law, I believe we must do more to ensure that federal agencies are fully complying and implementing telework for all eligible employees,” Rep. Wolf stated. “The Telework Improvements Act of 2009 will build on this foundation to cut through bureaucratic resistance, reduce traffic, and improve quality of life for our federal workforce.”

The legislation would require agencies to allow eligible employees to engage in telework for a minimum of 20 percent of the hours worked over a two week period, monitored by a Telework Managing Officer present in each agency. Lawmakers included language in the bill expanding the training available to federal employees and their supervisors to further promote the trust necessary for the program’s success. According to Representative Sarbanes, development of a standard government-wide policy on telework would produce benefits in terms of productivity gains, employee satisfaction and environmental conservation far outweighing the cost of adjusting to a change in workforce management.

“Traffic gridlock in our region results in lost productivity, less time spent with families, and pollution that poisons our air and alters our climate,” said Sarbanes.  “If more federal employees telework, not only will we improve their quality of life, we will relieve the overall strain on our transportation infrastructure and improve the daily commute for all area workers.”

“The Federal Managers Association fully supports efforts to expand this critical tool, as evidenced by testimonials we provided Congress on this issue in the past,” said FMA National President Darryl Perkinson. “In order to compete with the private sector in recruiting and retaining a highly skilled workforce, agencies must extend this crucial benefit to all employees whose duties allow for participation. We look forward to working with the sponsors of this legislation to advance the mission of the federal workforce.”

To view a copy of the Telework Improvements Act of 2009, please visit the Library of Congress Web site at: http://thomas.loc.gov.

SENATE CONSIDERS OBAMA ADMINISTRATION’S OPM NOMINEE

John Berry, President Barack Obama’s nominee for Director of the Office of Personnel Management (OPM), faced a series of questions by members of the Senate Homeland Security and Governmental Affairs Committee in his first nomination hearing held on March 26. Introduced to the Committee by House Majority Leader Steny Hoyer (D-Md.) and Senator Ben Cardin (D-Md.), Berry affirmed his commitment to tackling many of the challenges facing the management of the civil service, from reevaluating the implementation of pay-for-performance systems to bolstering recruiting incentives to attract the best and brightest to a career in public service.

In his opening statement, Senator Daniel Akaka (D-Haw.) made clear his belief that the future OPM Director would be charged with several difficult tasks imperative to establishing a successful federal workforce now and in the future.

“The federal government and its workforce are under a tremendous amount of pressure,” Senator Akaka told Berry. “We are fighting two wars overseas and trying to guide the recovery of our struggling economy. People are looking to the federal government for strong, effective leadership from the most senior officials to the front-line employees. Having the right talent in the right jobs is more important now than ever. If confirmed as Director of OPM, you will be vital to confronting this challenge and helping agencies meet their workforce needs and their missions.”

Senators Akaka and George Voinovich (R-Ohio), the only Committee members in attendance, presented Berry with several key questions designed to uncover many of the techniques and strategies Obama’s nominee would use to engage in management reforms within OPM and other federal agencies. Berry emphasized his belief that his predecessor, Linda Springer, employed strategies that were very successful at the time, and his first steps would involve building off of and adjusting her tactics as necessary to fit the goals of the new administration. Berry discussed how important it would be for him to engage in a dialogue with managers and employees alike to learn from their experiences and uncover techniques that could guide his own future reforms.

The two Senators also asked Berry to discuss his views on pay-for-performance, specifically in regards to the Department of Defense’s National Security Personnel System (NSPS), citing their observations that many of their constituents have said to scrap such systems. Berry responded by stating he would devote much of his energy to engaging in an objective review of pay-for-performance systems if confirmed, making clear his belief that evaluating programs such as NSPS can be very tricky. On the one hand, Berry told the Committee, taxpayers deserve the best workforce, and poor performers must be held accountable. On the other hand, he continued, without proper managerial training it is often hard to implement these systems as they were originally intended. Nobody has figured these programs out yet, Berry concluded, but he assured the Senators he would bring an open mind to OPM to determine what systems would work best to get the job done.

“It is my opinion, as the Nation’s largest employer, we should be its ‘Model Employer,’” Berry told the Committee. “We should seek to adopt the best practices for every piece of our human resources operation: recruitment, hiring, retention, work life and work place, pay and benefits, performance management and appraisal, discipline and removal, labor-management relations, and retirement.”

The Committee has to vote on Berry’s nomination before it can go to the full Senate for a vote. To view a copy of statements provided during the nomination hearing, please visit: http://hsgac.senate.gov.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

DEFENSE HEEDS LAWMAKERS’ APPEAL TO HALT NSPS CONVERSIONS

Representatives Ike Skelton (D-Mo.), Chairman of the House Armed Services Committee, and Solomon Ortiz (D-Tex.), Chairman of the House Armed Services Readiness Subcommittee, commended the Department of Defense (DOD) last week for halting any further conversions of civil servants into the Department’s pay-for-performance personnel system until a comprehensive analysis of the program’s effectiveness may be conducted. The chairmen requested in February that DOD cease converting more employees into the controversial National Security Personnel System (NSPS), supporting an in-depth impartial review before any further investment is made.

“The National Security Personnel System (NSPS) of the Department of Defense (DOD) 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 chairmen stated in the February letter to Defense Secretary Robert Gates. “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.”

Noting that President Barack Obama indicated his intent to repeal or overhaul the personnel system, Skelton and Ortiz determined efforts to advance the system in its current state would prove unproductive.

“Because it will take some time for a review and a determination of the best course of action to occur, we urge you to immediately halt the conversion of any additional employees to NSPS at any level or any location until the Administration and Congress can properly address the future of the Department’s personnel system,” they concluded.   

Following Gate’s decision in March to suspend NSPS conversions, the chairmen stressed the need to engage in a comprehensive and timely analysis of the system in order to establish a viable program affording employees the structure and benefits they deserve.  

“We are pleased that DOD heard our recommendations and has halted the conversion of additional employees into the National Security Personnel System pending a comprehensive system review,” the pair stated. “We encourage DOD to conduct this review as expeditiously as possible in order to minimize the period of uncertainty for all DOD civilian employees.”

To view a copy of the letter and subsequent statements, please visit the House Armed Services Committee Web site at: www.house.gov/hasc.

SECRETARIES OF LABOR, COMMERCE CONFIRMED

The Senate recently confirmed two more of President Barack Obama’s nominees for key political posts, approving the appointments of Hilda Solis as Secretary of Labor and Gary Locke as Secretary of Commerce. Filling each of these positions proved far more difficult for the new administration than expected, however, as President Obama struggled against Republican opposition to Solis’ appointment as well as several withdrawals by his initial selections for the Commerce slot.

Solis , nominated for the Labor position back on December 19, encountered harsh criticism from Republicans in the Senate following her first confirmation hearing. Her ties to a pro-labor group, where she served as treasurer, also presented an obstacle, as members of the Senate expressed their concern about how this might influence her future work with unions. Nevertheless, the Senate confirmed Solis on February 24 by a vote of 80-17 following Republican assurance they would not filibuster her nomination.

Locke was the President’s third choice for the Secretary of Commerce position, following the withdrawal of two of the administration’s original picks. Obama initially nominated New Mexico Governor and former Presidential candidate Bill Richardson, but he withdrew his name from consideration following allegations that he engaged in the transfer of money in exchange for political influence and a resulting federal grand jury investigation. Obama proceeded to nominate New Hampshire Republican Senator Judd Greg, but he too withdrew his name from consideration, fearing that the Obama administration had plans to remove many of the responsibilities of the Commerce Secretary out of his hands. Gregg also expressed several objections to the administration’s stimulus efforts.

Locke, the former Governor of Washington, was eventually nominated on February 25. The Senate confirmed the nominee on March 24 by unanimous consent.

To view more of the Obama administration's nominees, please visit the White House Web site at: www.whitehouse.gov.

GSA ADJUSTS PER DIEM RATES IN SELECT LOCALITIES

Effective April 1, three states will feature increased per diem rates for government travel as authorized by the General Services Administration (GSA), the body charged with establishing allowance rates for lodging, meals and incidental expenses in the Continental United States. GSA officials, following a review of pre-established per diem rates in Idaho, Maryland, and South Carolina, determined that certain areas within these states necessitated changes to their allowances. GSA establishes per diem rates at the onset of each new fiscal year, though reexamination of certain locales on a case by case basis occurs throughout the year.

Federal employees traveling on business to the Boundary and Bonner counties of Idaho will receive $76 compared to $70 towards their hotel expenditures as of April 1, while the per diem for meals and incidental expenditures will rise from $39 to $59. The hotel allowance rate will rise to $104 over the months of July and August in these counties, coming back down to $76 in September. Also in Idaho, the hotel allowances in Teton, Bonneville and Fremont counties will increase from $70 to $76, accompanied by an increase in meals and incidental rates from $39 to $44.

The per diem rate for hotels in Frederick, Maryland, will increase from $89 to $90. Federal employees traveling to Lexington, South Carolina, will receive $92 towards their hotel stays, versus the $70 currently in effect. Meal and incidental rates will also rise from $39 to $44 in Lexington.

For fiscal year 2009, GSA established a standard national per diem rate of $70 per night for hotel stays along with $39 for meals and incidentals.

To view a full listing of per diem rates across the country, please visit GSA’s Web site: www.gsa.gov.

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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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