Federal Managers Association

For more information on the hearing or the TSP, please visit: http://oversight.house.gov/ or http://www.tsp.gov/.

FMA URGES SENATE SUPPORT FOR MEDICARE PREMIUM FAIRNESS ACT

The Federal Managers Association (FMA) joined 19 other federal and postal advocacy organizations in urging the Senate to approve a measure extending protection to all federal retirees enrolled in Medicare Part B facing premium hikes in 2010. In a letter delivered on November 9 to members of the Senate, FMA and company issued their support for the Medicare Premium Fairness Act, H.R. 3631, which passed the House on September 24 by a vote of 406-18.

Current law protects the majority of individuals enrolled in Medicare Part B from premium spikes if the rate increase exceeds that year’s cost-of-living adjustment (COLA). The “hold harmless” policy, as the protection measured is called, ensures retirees who paid into Social Security will not face the premium increase next year, as no cost-of-living adjustment is expected. The policy, however, does not apply to retirees under the Civil Service Retirement System (CSRS) who never participated in the Social Security system and therefore never faced a reduction in Social Security payments to cover Medicare premiums.

According to the Centers for Medicare and Medicaid Services, Part B monthly premiums will rise over fourteen percent in 2010, from $96.40 to $110.50 despite no COLA increase for those not covered by the “hold harmless” provision.

“Approximately 27 percent of Part B enrollees are not covered by the ‘hold harmless’ law,” the letter read. “These beneficiaries will not only pay a higher premium; they will have to shoulder the costs of the other 73 percent ‘held harmless.’ Estimates are that this could affect eleven million retirees. Over 1 million are federal, state and local government retirees do not have Medicare premiums withheld from a Social Security check because they are not eligible to receive Social Security.”

The Medicare Premium Fairness Act would extend the hold harmless policy to all Medicare enrollees in 2010, protecting these CSRS retirees from higher premium rates for one year. The Senate has only a short period of time to pass the legislation and move it to the President’s desk before the first checks are sent in January 2010. The legislation is currently under review by the Senate Finance Committee.

For more information on H.R. 3631, please visit: http://thomas.lov.gov.

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WHAT’S HAPPENING ON CAPITOL HILL?

HOUSE APPROVES HEALTH CARE REFORM BILL, PROTECTS FEHBP

The Administration’s fight for comprehensive health care reform took a step forward on November 7 with House passage of the Affordable Health for America Act, H.R. 3962. Throughout the health care debate, the Federal Managers Association (FMA) has remained committed to protecting federal employees and retirees enrolled in the Federal Employees Health Benefits Program (FEHBP), and the House bill preserves the integrity of the federal government's health plan.

The Affordable Health for America Act, which passed the House by a vote of 220-215, would derive a large portion of its funding through a surtax on individuals earning over $500,000 a year or couples with a combined income exceeding $1 million. The funding technique is in stark opposition to that proposed by the SenateFinance Committee in its version of health care reform legislation, S. 1796, which seeks to create an excise tax on employer-provided insurance plans. Insurance plans with costs exceeding $8,000 for individual coverage and $21,000 for families would face a 40 percent tax on costs over those levels under the Finance Committee’s proposal. FMA has vehemently opposed such an excise tax, predicting many FEHBP participants enrolled in the most popular insurance plans would meet the tax thresholds as soon as 2013. Several Members of Congress have joined FMA in the fight against the excise tax.

The Affordable Health for America Act includes a provision which would require all insurance providers to extend their coverage of dependents through the age of 26. Children of federal employees enrolled in the FEHBP currently lose their coverage at the age of 22. FMA has long fought to extend coverage past the age of 22, as these individuals are often pursuing higher education at this age.

FMA is also renewing a push to establish a “Self Plus One” option in the FEHBP, which would provide coverage for the enrolled employee or retiree plus one eligible family member specified by the enrollee. The Office of Personnel Management currently offers no equitable enrollment plan for federal employees that require coverage for only themselves plus their spouse or themselves plus an unmarried dependent child under age 22. At the urging of its membership, FMA approved a resolution to place this proposal on the Association’s 2010 Issue Briefs.

FMA will continue to monitor the various health care proposals under debate on Capitol Hill and urges members to check back with the Association’s Web site for more information: www.fedmanagers.org.

SENATE BILL FUNDS FEDERAL EXECUTIVE BOARDS

The Senate approved legislation on November 5 which would provide Federal Executive Boards (FEBs), which coordinate federal agency activities outside of Washington, D.C., with permanent funding and administrative support. The Federal Executive Board Authorization Act of 2009 (S. 806), introduced by Senators Daniel Akaka (D-Haw.) and George Voinovich (R-Ohio), would allow FEBs to expand on their efforts to improve efficiency outside of the nation’s capital.

"Federal Executive Boards play a critical role facilitating federal communication and collaboration outside the Washington, D.C. area, including preparing the federal workforce for emergencies," Sen. Akaka said. "This important legislation will formally authorize Federal Executive Boards and provide a permanent funding mechanism, which will allow the Boards to continue their good work."

President John F. Kennedy first called for establishment of the FEBs in 1961 based on the need for effective coordination among the field activities of federal departments and agencies. As approximately 88 percent of federal employees work outside of Washington, FEBs serve as the public’s principal contact with the federal government. Until 2008, however, FEBs were forced to rely on voluntary contributions from member agencies to fund operations. Following a 2007 Government Accountability Office recommendation, the Office of Personnel Management (OPM) began charging agencies based on the number of workers falling under the jurisdiction of the Boards.

Under the Senators’ legislation, OPM would take on a greater role in coordinating with agencies where to establish FEBs. OPM would also administer funding for FEB operations, derived from participating agency and OPM contributions, while addressing many other administrative support functions. The legislation further requires the Director of OPM to submit an annual report to Congress and agencies on various matters relating to FEB operations.

“I am pleased to see that the Senate unanimously passed this legislation,” Sen. Voinovich said. “President Kennedy showed great foresight when he called for the coordination of federal agencies’ activities in 1961, and FEBs have done a good job since then in coordinating their work. These FEBs need a congressional charter and a set source of funding.”

For more information on S. 806, please visit: http://thomas.loc.gov.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

EXECUTIVE ORDER SETS SIGHTS ON VETERANS IN THE CIVIL SERVICE

President Obama signed an Executive Order on November 9 setting in place several initiatives to improve veterans’ access to positions in the federal workforce, the latest move in the Administration’s ongoing efforts to expand the representation of veterans in the civil service.

“Honoring our sacred trust with America’s veterans means doing all we can to help them find work when they come home so they never feel as if the American Dream they fought to defend is out of reach for them and their families,” said Obama. “But this initiative is about more than repaying our debt for their courageous service and selfless sacrifice.  It’s also about continuing to fill the ranks of federal employees with men and women who possess the skills, dedication, and sense of duty that Americans deserve from their public servants.”

The Order creates an interagency Council on Veterans Employment, co-chaired by the Secretaries of Labor and Veterans Affairs, to assist the President and the Office of Personnel Management (OPM) in coordinating veteran hiring efforts. The Council will primarily serve in a support role, advising the President on methods to coordinate enhanced recruitment and training of veterans, but will take the lead on developing performance measures to assess the effectiveness of the Administration’s initiative. The Council will provide an annual report to the President detailing progress made in the hiring process.

In addition to creating the Council, the Order establishes the Veterans Employment Initiative, a series of guidelines to direct agency efforts in the Administration’s hiring mission. Under the Initiative, each member of the Council will: develop agency-specific plans to boost veterans’ employment access; create a Veterans Employment Program Office within 120 days of the Order’s creation to enhance employment opportunities for veterans within their agency; and, provide mandatory annual training to human resources personnel and hiring managers on veterans’ employment rules and regulations.

“President Obama strongly believes in honoring the service of our veterans and he sees this initiative as an opportunity to put some real muscle behind that promise,” said OPM Director John Berry.  “The strong sense of patriotism and public service held by members of our armed forces doesn’t leave them when they exit from active duty.  It benefits our government to seize this opportunity to utilize their skills and dedication to service.  The Veterans Employment Initiative will help our federal agencies identify qualified veterans, clarify the hiring process for veterans seeking employment with the federal government, and help our veterans adjust to civilian life once they are hired.”

For more information on the President’s Executive Order, please visit: http://www.fedshirevets.gov.

FEDERAL SALARY COUNCIL RELEASES 2011 LOCALITY PAY PROPOSAL

On November 4, the Federal Salary Council (FSC) issued its recommendation that members of the civil service receive a 43.75 percent average locality pay adjustment in 2011 in order to close the gap between average base General Schedule salaries and non-federal average salaries. The FSC abstained, however, from providing a recommendation for a pay raise in 2010 or 2011 as Congress has yet to settle on a final proposal for the 2010 civilian pay raise.

The FSC and the President collaborate each year to determine how best to reduce the pay gap between individuals working in the private sector and those in the civil service. The FSC’s recommendations encompass: establishment or modification of pay localities; coverage of salary surveys used to set locality pay; the process for making pay comparisons; and, the level of comparability payments that should be made. 

Cities experiencing the largest pay gaps, and therefore earning the largest locality pay adjustment recommendations from the FSC, include San Francisco, Washington D.C., New York City, Hartford and Boston. The FSC recommended these cities receive locality pay adjustments in 2011 equaling 61.3 percent, 60.2 percent, 53.8 percent, 50.2 percent and 48.4 percent, respectively.

The FSC also recommended the Office of Personnel Management (OPM) maintain the existing 31 distinct locality pay areas identified in 2009, with the rest falling under the category “Rest of the United States” (RUS). Each year many regions lumped in the RUS category petition OPM for inclusion in an existing locality zone or development of a new zone. None of the submissions were approved by the FSC in 2010.

To view a copy of the FSC’s latest report, please visit OPM’s Web site at: www.opm.gov.

2010 FEDERAL BENEFITS OPEN SEASON UNDERWAY

November 9 officially marked the beginning of the 2010 Federal Benefits Open Season, a month-long period that allows federal employees to reevaluate their participation in various health benefits programs. Running through December 14, the Open Season provides feds the opportunity to make decisions on their 2010 health, dental and vision plans that they would otherwise be unable to make during the rest of the year.

The Federal Employees Health Benefits Program (FEHBP), Federal Employees Dental and Vision Insurance Program (FEDVIP), and the Federal Flexible Spending Account Program (FSAFEDS) all participate in the annual Open Season. The Office of Personnel Management (OPM), which directs the Open Season, encourages all federal employees to review their current coverage plans and research all of the options available through these programs, taking into account any need for expanded coverage while weighing the effects of rising premium costs.

Most FEHBP plans will experience benefit and rate changes in 2010, with a handful of plans dropping out of the program completely and others adjusting their service areas or coverage options, according to OPM. If you choose to do nothing during the Open Season, you will remain covered under your current health insurance plan, unless your health provider is one of those exiting the FEHBP, but the benefits you receive and the premiums you pay may change. The same holds true for any FEDVIP coverage. If you participate in the FSAFEDS program, however, you must reenroll during the Open Season, as the program does not carry over automatically.

“Failure to consider your health plan choices could leave you without the healthcare services or supplies you need or with a premium you can’t afford,” OPM cautions. “This is the time to make elections you usually can’t make any other time of the year.”

For more information on the 2010 federal Benefits Open Season, please visit OPM’s Web site at: www.opm.gov.

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GET INVOLVED AT THESE EVENTS!

ATTEND THE HCMF CONFERENCE TAKING PLACE THIS WEEK IN DC

The Human Capital Management: Federal (HCMF) Conference has become an important annual meeting that FMA is again pleased to sponsor. HCMF starts today and will run through November 18, 2009, at the Marriott Key Bridge in Arlington, Virginia.

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.

CFC SEASON IN FULL SWING, DONATE TODAY!

The Office of Personnel Management is once again rousing support for the federal government’s annual charity drive, the Combined Federal Campaign (CFC), which kicked off September 1 and runs through December 15. The Federal Managers Association (FMA) is proud to partner with the Federal Employee Education and Assistance Fund (FEEA), which offers education scholarships and emergency assistance to federal employees and their families through your donations during this campaign season.

“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.

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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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