Federal Managers Association

Stay tuned to FMA’s Web site at www.fedmanagers.org for the latest info on H.R. 2647. To view a copy of the report’s language, please visit: http://thomas.loc.gov.

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WHAT’S HAPPENING ON CAPITOL HILL?

CONGRESS PREPARED TO AX NSPS BY 2012

The House passed the measure on October 8 and if the conference report is ultimately approved by the Senate and signed into law by the President, all NSPS employees would return to their previous personnel systems by January 1, 2012. For the majority of the over 200,000 employees currently enrolled in the system, this would entail a move back into the General Schedule (GS). These employees would return to the grade and step level that most closely mirrors their current salary figures. The legislation would allow DOD to propose an entirely new personnel system to replace NSPS and avoid transitioning employees back to their old systems, but the proposal would be due within six months of the report’s final approval, affording DOD little time to develop a viable alternative pay system.

The report explicitly states employees will not suffer any loss of pay resulting from the conversion out of NSPS, but Federal Managers Association (FMA) National President Darryl Perkinson cautioned employees could still face a cap on their pay, particularly if they received large raises under NSPS.

“Our efforts now must focus on protecting the hard earned pay of federal employees transitioning out of NSPS, as we must avoid a situation where employees’ earnings are negatively impacted during the process,” said Perkinson. “It is not fair if employees’ salaries are capped when they return to the General Schedule while they wait for others to catch up to the pay they rightfully earned. We are committed to working with the necessary government bodies to ensure protections are put into place to prevent such a situation from occurring.”

In addition to language on NSPS, H.R. 2647 would halt further development of the Defense Civilian Intelligence Personnel System (DCIPS). All intelligence employees outside of the National Geospatial-Intelligence Agency, which has worked under DCIPS for a decade, will freeze movement into the system while the Office of Personnel Management and the Director of National Intelligence reevaluate the program.

For more information on H.R. 2647, please visit: http://thomas.loc.gov.

LAWMAKERS UP IN ARMS OVER LONG-TERM CARE PREMIUM HIKES

Over half of the roughly 275,000 federal employees and retirees enrolled in the government's Federal Long Term Care Insurance Program (FLTCIP) will face premium increases of up to 25 percent in 2010 despite assurances from both the Office of Personnel Management (OPM) and John Hancock Life Insurance Company that these individuals were protected from premium hikes. During a joint hearing held on October 14, Members of the Senate Special Committee on Aging and the Senate Homeland Security and Governmental Affairs Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia demanded answers as to why OPM and John Hancock were reversing policy to the detriment of these FLTCIP participants.

Congress established the FLTC Insurance Program in 2003 as a means to fill the insurance void facing senior citizens requiring long term care that falls outside of the benefits provided through Medicare and their personal health insurance provider. Participants in the program were offered the option of enrolling in the Automatic Compound Inflation Option (ACI). Individuals selecting the ACI Option paid more upfront for their coverage with the understanding their benefits would “automatically increase by 5 percent compounded every year with NO corresponding increase in your premium,” according to a benefits booklet. In May of 2009, however, OPM announced FLTCIP participants with the ACI Option could expect premiums to rise by up to 25 percent in 2010.

According to Members of the Committees and confirmed by Daniel Green, OPM Deputy Associate Director for the Center for Employee and Family Support Policy, OPM knew premium hikes for ACI enrollees were possible, yet the agency did little to actively inform participants until May. Marianne Harrison, President of the Long Term Care Program at John Hancock, told the Committees that language contained in the contract never explicitly eliminated the possibility of a future premium increase, a charge the Senators refused to accept.

"It is alarming that today, despite earlier assurances by OPM, more than 147,000 federal long-term care insurance enrollees will be facing soaring premium increases, in many cases as high as 25 percent, in January,” stated Senator Susan Collins (R-Me.). “This is simply unacceptable, particularly given the fact that OPM began to recognize the real possibility of increases as early as 2003….There was no straightforward disclosure. To the contrary, the implication was that by signing up at a relatively early age and by paying a higher rate, one could avoid premium increases. OPM made absolutely no effort to educate participants. This failure is certainly no model; no way to set an example for others to follow.”

According to OPM and John Hancock, FLTCIP participants in the ACI Option can still avoid the premium increase if they restructure their benefits by December 14. Avoiding the premium spike would require a stiff reduction in benefits, however, an option many Senators deemed unacceptable.

Senator Roland Burris (D-Ill.) suggested John Hancock and OPM at least grandfather current ACI participants in at current premium and benefit levels, then restructure the program to inform future enrollees of the potential premium hike. While Green told the Committees OPM would not be able to do so, he assured them his office would work hand in hand with Members of Congress to reach a satisfactory deal. No indication of what this may entail was offered.

For more information on the hearing, please visit: http://hsgac.senate.gov.

SENATE COMMITTEE BACKS EXTENSION OF BENEFITS TO FEDS' DOMESTIC PARTNERS

S. 1102 and its companion bill in the House, H.R. 2517, would allow federal employees’ domestic partners, defined as “an adult unmarried person living with another adult unmarried person of the same sex in a committed, intimate relationship,” to enroll in the Federal Employees Health Benefits Program, long-term care and other benefits currently enjoyed by their heterosexual counterparts. The legislation would also subject federal employees and their same-sex partners to the same legal rules that currently apply to civil servants and their heterosexual spouses. These rules include financial disclosure requirements and anti-nepotism regulations.

During the hearing, Chairman Lieberman emphasized the critical role S. 1102 would play in aiding the government’s recruitment and retention efforts while constituting a minute percentage of the government’s total expenditures on employee benefits.

“This bill is the fair and right thing to do and makes practical sense for the federal government as an employer,” Lieberman said.  “As we approach a generational change in the federal workforce that will see the retirement of one-third of all federal employees, we must do all we can to attract and retain the ‘best and the brightest’ to serve in the years ahead.  This legislation will balance the scales of justice, but it will also help the federal government be the best it can be.”

Office of Personnel Management Director John Berry and Congresswoman Tammy Baldwin (D-Wis.), both openly gay federal employees and staunch advocates of the legislation, provided testimony promoting Congress’ efforts to move forward with the benefits, which the majority of Fortune 500 companies already afford their employees. Baldwin is the lead sponsor of the House version of the legislation.

“The purpose of the Domestic Partnership Benefits and Obligations Act is to ensure that hard-working Americans can no longer be denied equal compensation for equal work just because of who they love,” Baldwin told the Committee. “There is certainly nothing more American than ensuring that people have equal job opportunities and are paid fairly for a day’s work.”

For more information on the hearing, please visit: http://hsgac.senate.gov.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

OBAMA PUSHES ONE-TIME PAYMENT TO EASE LACK OF SOCIAL SECURITY COLA

Retirees will not receive an automatic cost of living adjustment (COLA) in their Social Security benefits next year for the first time since 1975, the Social Security Administration (SSA) announced on October 15. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) determines any fluctuation in the COLA, and the Bureau of Labor Statistics reported no increase in CPI-W over the past year beginning in the third quarter of 2008.

The news is especially disturbing for retirees in the Civil Service Retirement System (CSRS) who never paid into Social Security and are not currently protected against increases in Medicare premiums. Current law protects the majority of individuals enrolled in Medicare Part B from premium spikes if the rate increases exceed that year’s cost-of-living adjustment. The 2009 Medicare Premium Fairness Act (H.R. 3631), legislation that would extend the “hold harmless” policy, as the protection measure is called, to all Medicare enrollees in 2010, is currently working its way through Congress. The House approved the measure on September 24.

The President also issued his support for a one-time $250 payment to all Social Security and Supplemental Security Income beneficiaries, complimenting a similar $250 payment received by Social Security recipients as part of the American Recovery and Reinvestment Act (P.L. 111-5).

"Even as we seek to bring about recovery, we must act on behalf of those hardest hit by this recession,” said Obama. “That is why I am announcing my support for an additional $250 in emergency recovery assistance to seniors, veterans, and people with disabilities to help them make it through these difficult times. These payments will provide aid to more than 50 million people in the coming year, relief that will not only make a difference for them, but for our economy as a whole, complementing the tax cuts we’ve provided working families and small businesses through the Recovery Act.”

SSA Commissioner Michael Astrue issued his support for the President’s proposal as well, citing the reliance retirees place on Social Security. Even though the COLA skyrocketed in recent years, the absence this year could be devastating to many Social Security beneficiaries.

“Social Security is doing its job helping Americans maintain their standard of living,” Astrue announced.  “Last year, when consumer prices spiked, largely as a result of higher gas prices, beneficiaries received a 5.8 percent COLA, the largest increase since 1982.  This year, in light of the human need, we need to support President Obama’s call for us to make another $250 recovery payment for 57 million Americans.”

For more information on the COLA and the President’s proposal, please visit: www.whitehouse.gov.

OMB UNVEILS REVISED PROGRAM PERFORMANCE MANAGEMENT FRAMEWORK

In an Executive Memorandum issued on October 7, OMB Director Peter Orszag emphasized the key role these assessment procedures will play in aiding the Administration’s efforts to spend taxpayers’ money in the most efficient and effective manner. The President is fully committed to investing money in successful programs, Orszag wrote, and eliminating funding in areas where results are lacking.

“Many agencies lack an office of evaluation with the stature and staffing to support an ambitious, strategic, and relevant research agenda,” the memo stated. “As a consequence, some programs have persisted year after year without adequate evidence that they work. In some cases, evaluation dollars have flowed into studies of insufficient rigor or policy significance.”

As part of its efforts, OMB will create an online portal where information on existing evaluation procedures may be easily shared. OMB, in coordination with the Domestic Policy Council, the National Economic Council and the Council of Economic Advisors, will also create an inter-agency task force charged with promoting stronger evaluation procedures government-wide. Orszag further emphasized the Administration’s dedication to improving transparency by expanding information on program evaluations open to the public. Increasing public awareness of agencies’ assessment procedures will allow for greater input into strategies agencies could employ to boost success while also improving the public’s confidence in the government’s pledge to reduce wasteful spending.

In order to receive funding to pursue voluntary evaluation initiatives, agencies must submit a statement by November 4, 2009 detailing how their efforts will translate into policy and budgetary reforms as they assess current and future programs. Proposals must also demonstrate how the agencies are utilizing current evaluation processes to root out waste.

“Rigorous, independent program evaluations can be a key resource in determining whether government programs are achieving their intended outcomes as well as possible and at the lowest possible cost,” wrote Orszag. “Evaluations can help policymakers and agency managers strengthen the design and operation of programs. Ultimately, evaluations can help the Administration determine how to spend taxpayer dollars effectively and efficiently -- investing more in what works and less in what does not.”

To view a copy of the memorandum, please visit: www.whitehouse.gov.

SSA EFFORTS SUCCESSFUL IN DRIVING DOWN HEARINGS BACKLOG

SSA faced 760,813 pending hearing requests at the start of FY09. The agency successfully reduced that number to 722,822 hearings, a decrease of over 37,000 cases. The agency also reduced the average processing time required by each case, improving from 514 days to 491 days during the same time period.

“Our backlog reduction plan is working, and progress is accelerating,” Astrue exclaimed. “Even in the face of a significant increase in our workloads as a result of the worst recession since the Great Depression, we have reduced the hearings backlog for nine consecutive months. Thanks to the efforts of thousands of hardworking Social Security employees and the additional funding we received from President Obama and the Congress, we have exceeded our backlog reduction goal for this year.”

The Federal Managers Association (FMA) has aggressively lobbied Congress to secure the President’s requested funding figure of $11.4 billion for ODAR’s administrative expenses in the Fiscal Year 2010 Labor, Health and Human Services and Education Appropriations Act, H.R. 3293, to ensure the continued success enjoyed by the agency. The House approved the funding request in July, and the appropriations bill currently awaits consideration by the full Senate.

“I am extremely pleased to hear that SSA is making significant strides in its delivery of service to American taxpayers, but we must continue to fight to ensure the agency receives sufficient funding in the future to continue to drive down the backlog,” FMA National President Darryl Perkinson commented. “The Senate must approve the President’s funding request to equip SSA with the resources necessary to afford the public the level of service it deserves.”

Elimination of the backlog requires reducing the pending caseload to roughly 460,000 cases, the accepted standard amount of cases that should be pending at any one time. A significant portion of the funding allocated in the House-approved version of the appropriations bill would allow SSA to hire additional employees to augment the existing workforce, allowing ODAR to process tens of thousands of more hearings in FY10 than in FY09.

For more information on the agency’s efforts, please visit: www.ssa.gov.

REPORT FINDS MANAGERS HESITANT TO USE FIRING FLEXIBILITIES

Specifically, the report looks at firing authorities established under Chapter 75 of Title V of the U.S. Code versus those created under Chapter 43, included in the Civil Service Reform Act. Chapter 75 requires supervisors to prove an action to remove an employee is correct, relying on a substantial amount of proof to justify action. Congress determined the rules were too strict, however, leading to development of Chapter 43 in 1978, which requires evidence prove an employee’s dismissal was “reasonable,” according to MSPB. Agencies are able to employ either Chapter in the evaluation process, but the report found agencies favored Chapter 75’s reliance on proof over the flexibilities afforded managers through Chapter 43, leading to MSPB’s conclusion that factors beyond the regulations available to managers dictate the employment of action against poor performers.

“While supervisors provided a number of reasons why they felt that taking a performance-based action was difficult, the concerns tended not to be a result of the use of Chapter 43 or 75, but rather were inherent to performance management in a merit system, or resulted from misunderstandings regarding existing regulations,” the report states. “Thus, these concerns are unlikely to be resolved by any change to Chapter 43 or 75.”

Rather than focus on policy adjustments to arm managers with greater authority to root out poor performers, the report states, agencies must strive to promote individuals to managerial roles who demonstrate a willingness to employ current authorities while simultaneously educating current supervisors on how to utilize available regulations to promote efficiency in the workforce. MSPB recommends agencies advance employees to managerial roles if they demonstrate the ability to recognize employees’ needs and provide effective assistance to determine if they are suitable performers, as opposed to offering supervisory roles to individuals simply demonstrating a willingness to fire employees.

“Supervisors carry the responsibility for performance management,” states the report. “As a result, having skilled supervisors is crucial to avoiding the retention of poor performers. Therefore, it is impor­tant for agencies to pick supervisors with the skills and willingness to deal effectively with poor performers, and to provide those supervisors with training and guidance on how to use the regulations to address poor performers.”

The report further determined supervisors who invested themselves in their employees’ performance at an early stage were better equipped to determine whether or not an employee performed to the standard established by the agency. Early involvement in the performance appraisal process allows managers to provide more thorough evidence documenting poor performance, the report concluded, if the manager is asked to justify any action taken.

To view a copy of the report, please visit: www.mspb.gov.

ADMINISTRATION LEADS EFFORT TO INCREASE DISABLED WORKERS IN CIVIL SERVICE

According to the Equal Employment Opportunity Commission’s (EEOC) Annual Report on the Federal Work Force for fiscal year 2008, individuals with targeted disabilities constituted 1.12 percent of the federal workforce in FY99. In FY08, disabled employees represented only 0.88 percent of the workforce. In sum, the federal workforce employed 24,427 employees with targeted disabilities in FY08, according to the report. The EEOC’s definition of “targeted disability” refers to a wide range of physical or mental conditions, including blindness, deafness and mental illness, among others.

"As the nation's largest employer, the Federal government and its contractors can lead the way by implementing effective employment policies and practices that increase opportunities and help workers achieve their full potential," said Obama. "We must also rededicate ourselves to fostering an inclusive work culture that welcomes the skills and talents of all qualified employees."

The hiring fair, which OPM will conduct in coordination with the Department of Labor, intends to bring numerous federal agencies with pressing staffing needs together to offer immediate employment to qualified individuals. OPM’s training program will focus on the Schedule A Hiring Authority, which provides agencies with flexibilities when considering disabled individuals for employment. OPM Director John Berry emphasized the initiatives constitute another step government is taking to serve as a model employer.

"I believe strongly that the Federal government should be the model of diversity for all of America," said OPM Director John Berry.  "And that America includes an amazing untapped talent pool of people with disabilities who are eager and ready to join the Federal government. We must do more than just enact inclusive policies, we must actively recruit, develop, retain and promote a workforce that is drawn from and represents the diverse faces of this nation."

For more information on the initiatives, please visit: www.opm.gov.

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GET INVOLVED AT THESE EVENTS!

CFC SEASON UNDERWAY, DONATE TODAY!

 “The Combined Federal Campaign is a tremendous opportunity for civil servants to extend their commitment to the community and charitable organizations, and FEEA is a great example of that,” said FMA National President Darryl Perkinson. “Its work touches the lives of FMA members and their families. The FMA-FEEA scholarship fund helps put federal managers’ children through college and assists some in their own educational pursuits. We are proud to be one of FEEA’s partners in the federal community.”

Federal employees interested in donating to the FMA-FEEA scholarship fund should mark their pledge cards with FEEA’s CFC #11185 and indicate the amount of the pledge, then turn in the card before the deadline for their particular agency. Deductions begin with the first full pay period in January and continue throughout the year.

For more information on the Combined Federal Campaign, please visit: www.opm.gov/cfc. To learn more about FEEA, visit: www.feea.org.

THE PUBLIC MANAGER HOSTS 2ND ANNUAL MANAGEMENT CONFERENCE

This year’s conference is built around a pivotal, applied theme and relies heavily on a wide array of subject matter experts—experienced practitioners from all levels of government, young professionals and public administration students, applied academics and researchers, public management consultants and trainers, and public nonprofit and international organizations.

The format of the plenary sessions, concurrent panels, and workshops is intended to encourage the interaction and exchange of alternative views on such matters as: engaging the public and government organizations on issues of transparency, performance measurement and labor-management collaboration; strengthening inter-institutional collaboration; improving performance accountability; and, revisiting professional development within the public sector with an eye towards improving trust.

FMA and The Public Manager enjoy a mutually supportive relationship. FMA will be exhibiting at this conference and strongly recommends its members’ attendance at this quality, educational event.

For more information, please visit: www.thepublicmanager.org/2009conference.

HCMF CONFERENCE SET FOR NOVEMBER

HCMF delivers exceptional value for learning about key human capital strategies and initiatives across federal agencies and for meeting peers looking for solutions to day-to-day challenges in managing and developing the workforce. It is an exciting time to be a human capital officer, with all the many opportunities to assess, change, and improve existing human resource policies and processes. Join government leaders and peers at this three-day interactive training conference and uncover innovative ways to engage current employees, find the right people to join your agency, and develop high performing individuals and teams.

For more information, please visit: www.HCMFederal.com.

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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 and 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.

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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.

1641 Prince Street ~ Alexandria VA 22314-2818 ~ (703) 683-8700 ~ FAX (703) 683-8707 ~ E-Mail Info@fedmanagers.org

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