Federal Managers Association

On December 16, FMA Government Affairs Director Jessica Klement met with leaders from the other four GMC partners to discuss the Coalition’s 2010 legislative agenda. The GMC will continue to tackle a broad range of topics impacting civil servants in the new year, from the need for enhanced supervisory training to the civil service reforms proposed by Office of Personnel Management Director John Berry. Stay in touch with the Coalition’s activities by visiting FMA’s Web site at: www.fedmanagers.org.

On December 15, principals representing the thirty-plus member organizations of the Public Employees Roundtable (PER) met to discuss the upcoming Public Service Recognition Week (PSRW). Celebrated since 1985 and held the first Monday through Sunday in May, PSRW is a time set aside to honor the men and women who serve our nation as federal, state, county and local government employees and ensure that our government is the best in the world. PSRW is sponsored by PER.

Now under the leadership of the Partnership for Public Service, PER has set an ambitious agenda for the 25th anniversary of PSRW. The meeting focused on increased engagement with the Executive Branch and Capitol Hill, with FMA’s Klement serving on the PSRW Legislative Committee to increase awareness of the event to Members of Congress and Hill staff. Stay tuned for more information on PSRW and PER activities in the coming months.

FMA is also proud to sit on the Federal Employee Education & Assistance Fund (FEEA) Board of Directors. On December 15, FMA’s Executive Director Todd Wells attended a FEEA board meeting which consisted of the annual Financial Review and Investment Report. Thanks to prudent investments and careful oversight, 2009 proved to be a much better year financially than 2008. FEEA remains in the good hands of Executive Director Steve Bauer and is well-equipped to handle the challenges that will face federal employees in the years ahead.

Among its many scholarship opportunities, FEEA sponsors the only annual, merit-based contest open only to civilian federal and postal employees, their spouses and college-age children. Since 1994, FEEA has expertly administered FMA’s Scholarship Program and allowed the Association to award over 100 scholarship awards to FMA members and their families. Starting this year, grandchildren of FMA members will also be eligible for FMA-FEEA Scholarships. The due date for submitting applications is March 26, 2010.

Emergency loans are also available to help employees who fall behind on basic living expenses (mortgage/rent or utilities) due to unforeseen emergencies such as leave without pay, government pay error, death or illness in the family. Additionally, FEEA administers a childcare subsidy program for more than two dozen federal agencies.

FEEA’s Combined Federal Campaign (CFC) number is 1-1-1-8-5. Please remember this worthy organization when making your CFC selections. You can contribute and learn more about FEEA by visiting: http://www.feea.org. Be assured that FEEA’s overhead costs are among the lowest of any charity and that your contribution will be used to assist your fellow federal colleagues in need.

LAWMAKERS BEGIN FORMAL HEALTH CARE LEGISLATION NEGOTIATIONS

Lawmakers from both chambers are set to begin negotiations over health care reform this week following the Senate’s Christmas Eve 60-39 vote approving its version of the legislation, H.R. 3590. In a letter to key Members of Congress delivered on January 11, the Federal Managers Association (FMA) joined several other federal employee organizations which serve collectively on a federal/postal coalition in urging Members of Congress to preserve the integrity of the Federal Employees Health Benefits Program (FEHBP) as the Legislative Branch crafts a final consolidated health care bill.

The coalition specifically took issue with the Senate’s reliance on an excise tax targeting “high value” or “Cadillac” health insurance plans to fund the bill’s reforms. H.R. 3590 would impose a forty percent excise tax on health care premium costs exceeding $8,500 for individual plans and $23,000 for family coverage. Lawmakers have touted this tax, which would be born by insurers, as a means to discourage the promulgation of Cadillac health care plans.

FMA and its coalition partners noted, however, that the most popular FEHBP plan, the Blue Cross and Blue Shield (BCBS) Standard option, could be subject to the tax by 2013. It is feared that BCBS and other insurers facing the tax would pass the financial burden to enrollees through a reduction in services or higher premiums and co-pays.

“Characterizing this tax proposal as a 'Cadillac tax' is a misnomer,” members of the coalition argued in the January 11 letter. “It hits the average blue collar and white collar employee or annuitant. FEHBP insurers will simply reduce coverage and, as the taxes increase, a downward spiral toward less coverage will ensue, which is antithetical to health care reform’s stated purpose. Penalizing FEHBP enrollees with this tax is a huge disincentive to qualified applicants seeking federal or postal employment. It is bad for the government and bad policy overall.”

The House version of the legislation (H.R. 3962) does not include the excise tax, instead relying on a surtax on individuals earning over $500,000 a year or couples with a combined income exceeding $1 million.

The coalition also used the letter as an opportunity to issue its support for measures included in the Senate bill which would add protections for the FEHBP in regards to a proposal establishing the Office of Personnel Management (OPM) as administrator over multi-state health plans. Cautioning that “OPM’s role in administering a national health plan for non-FEHBP participants is the most significant expansion of its duties in the agency’s history,” FMA and the coalition urged Congress to maintain the FEHBP in its current state to afford participants “ comprehensive coverage with affordable and predictable premiums.”

In addition, the coalition reiterated the need to require all insurance providers, including those in the FEHBP, to extend their coverage of dependents through the age of 26. Specifically, the coalition letter asked Members of Congress to clarify the bill’s language to ensure the benefit is provided to FEHBP participants.

To view a copy of the letter and for further updates on health care reform efforts, please visit FMA’s Web site at: www.fedmanagers.org.

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WHAT’S HAPPENING ON CAPITOL HILL?

SENATE COMMITTEE ADVANCES DOMESTIC PARTNERS BENEFITS ACT

In stark contrast to the vigorous debate that characterized previous discussions of legislation which would extend benefits to the same-sex domestic partners of federal employees, the Senate Homeland Security and Governmental Affairs Committee approved the Domestic Partnership Benefits and Obligations Act (S. 1102) on December 16 absent of any opposition outside of a single “nay” offered by one Senator during the roll call vote.

The bill advanced out of committee by an 8-1 vote, with Chairman Joe Liberman (I-Conn.), Ranking Member Susan Collins (R-Me.) and Senator Roland Burris (D-Ill.) each touting the benefit of moving the bill forward. S. 1102 would provide the same-sex domestic partners of federal employees with benefits currently available to the spouses of heterosexual civil servants, including health, dental and vision insurance and long term care insurance.

“This legislation is on the right side of history and is really about equal pay and benefits for equal work,” said Lieberman.  “Federal employees should not have to choose between their commitment to public service and their commitment to their families.”

The Chairman, acknowledging the stiff opposition the bill will likely encounter when considered by the full chamber, said he would not bring S. 1102 to the Senate floor until the Office of Personnel Management (OPM) provides the Committee with a proposal to cover the cost of the measure. The Congressional Budget Office projected S. 1102 would cost roughly $630 million over a ten year period. OPM Director John Berry told the Committee during an October hearing that his office could find a cost offset, but Senators Lieberman and Collins expressed frustration prior to the vote that OPM had yet to reveal anything concrete. Although OPM’s delay will put the legislation on hold for the time being, Senator Collins addressed the government’s need for the bill’s passage to recruit and retain a topnotch workforce.

“This change is both fair policy and good business practice,” said Collins.  “The federal government must compete with the private sector when it comes to attracting the most qualified, skilled, and dedicated employees. ”

To view a copy of the Domestic Partnership Benefits and Obligations Act, please visit: http://thomas.loc.gov.

SENATORS PUSH FOR STREAMLINED SECURITY CLEARANCE PROCESS

Senators Daniel Akaka (D-Haw.) and George Voinovich (R-Ohio) introduced legislation on December 3 which would reform several federal government security clearance processes in order to improve agencies’ abilities to issue clearances in a timely and effective manner. Introduction of the bill is the latest action taken by the two lawmakers to modernize the government’s security clearance process since the Government Accountability Office placed the security clearance backlog on its High-Risk List, which identifies programs most vulnerable to waste, fraud or mismanagement, in 2005.

A chief component of the Security Clearance Modernization and Reporting Act, S. 2834, would require government-wide recognition of standardized security clearances, mandating agencies accept clearances granted by all other agencies and departments. Many agencies refuse to recognize clearances they do not grant themselves, instead relying on their own standards to perform background checks and other security procedures. This tendency can drastically increase the time it takes to approve final security clearances.

According to Senator Akaka, current security clearance processes pose a significant threat to the federal government’s ability to recruit and retain a highly-qualified workforce.

“The federal government loses talented people to private industry if security clearances take too long," Sen. Akaka said.  "For both human capital and national security, it is vital that security clearances and suitability determinations be of the highest quality and made in a timely manner.”

The legislation calls for creation of a Security Clearance and Suitability Performance Accountability Council, chaired by the Deputy Director for Management of the Office of Management and Budget, which would be charged with supervising efforts to eliminate the security clearance backlog. Senior officials from the Office of the Director of National Intelligence, the Department of Defense and the Office of Personnel Management will serve on the Council as well.

"Problems with the federal government's security clearance process have been documented since the 1990s," Senator Voinovich stated, "and while some progress has been made in the past few years to decrease the amount of time it takes to obtain a security clearance, more improvement is needed to fully reform the security clearance process.

For more information on the Security Clearance Modernization and Reporting Act, please visit: http://thomas.loc.gov/cgi-bin/query/z?c111:S.2834:.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

EXECUTIVE ORDER FINALIZES 2010 PAY RAISE

President Obama signed an executive order on December 23 approving the 2 percent pay raise for civilian federal employees in 2010 included in the fiscal year 2010 omnibus appropriations package (P.L. 111-117). From that figure, 1.5 percent will be devoted towards an across the board pay increase, with 0.5 percent allocated to locality pay adjustments. The same order provides members of the military with a 3.4 percent raise.

While Congress upheld the President’s requested 2 percent pay increase for members of the civil service, the legislative body diverted from his proposal to allocate the full raise towards a base pay increase, instead establishing a quarter of the total raise for locality pay adjustments. The President’s executive order conceded to Congress’ appeal.

In conjunction with the executive order, the Office of Personnel Management (OPM) released the agency’s updated locality pay tables, which detail how large a locality pay adjustment various regions across the United States receive. Federal employees residing in the San Jose-San Francisco-Oakland region will receive the largest locality pay adjustment at 35.15 percent. The New York-Newark-Bridgeport and Houston-Baytown-Huntsville regions round out the top three locality pay rates, with employees receiving pay rates of 28.72 percent and 28.71 percent, respectively. Civil servants in the Washington-Baltimore-Northern Virginia region will receive a 24.22 percent adjustment.

To view a copy of the executive order, please visit: http://www.whitehouse.gov/the-press-office/executive-order-adjustments-certain-rates-pay.

To view OPM’s locality pay tables, please visit: http://www.opm.gov/oca/10tables/index.asp.

ACTING NSPS CHIEF PROVIDES TRANSITION GUIDANCE

Although the Department of Defense’s (DOD) controversial National Security Personnel System (NSPS) is on its way out the door, a December 10 memorandum issued by NSPS Acting Program Executive Officer Tim Curry states DOD hiring managers may continue to place new recruits under the controversial personnel program. According to the memo, provided the NSPS job vacancy announcements are posted before March 1, 2010 and contain a supplementary statement explaining the positions will transfer out of NSPS by the personnel system’s January 1, 2012 termination date, employees may be assigned to the pay system.

In addition to the disclaimer, job offers for positions covered under NSPS must explicitly state which pay system, whether it be the General Schedule (GS) or other personnel program, will replace NSPS prior to the January 1, 2012 deadline.

The directive is part of a larger series of guidelines designed to assist NSPS component program managers as they place new hires in various personnel systems during the transition. Along with the order covering job announcements posted prior to March 1, 2010, the memo clearly states all individuals hired after March 1, 2010 “must be placed under GS or applicable non-NSPS statutory pay system.” The same holds true for employees transferred to new positions within DOD where NSPS is still in effect.

Curry also reiterated DOD management may not transfer NSPS employees into a new pay system if that process results in a loss of pay, which supports regulations signed into law as part of the Fiscal Year 2010 National Defense Authorization Act (P.L. 111-84). Despite the guideline’s provision enabling DOD hiring managers to continue to place new employees under the dying personnel system, Curry emphasized DOD leadership is committed to carrying through the conversion in a prompt fashion.

“DOD Leadership has directed the Components to proceed expeditiously with the transition from NSP,” Curry stated in the memo. “As soon as possible, NSPS organizations should begin appointing individuals to non-NSPS statutory pay systems in accordance with the attached guidance.”

For more information on the NSPS transition, please visit: http://www.cpms.osd.mil/nsps/.

OPM REORGANIZATION AIMS TO CLARIFY DEPARTMENT ROLES

In an effort to combat an organizational structure often criticized as difficult to navigate and unnecessarily stratified, the Office of Personnel Management (OPM) announced intentions to reconfigure the agency’s core structure into five new divisions, each covering a set of individual missions and priorities. According to OPM Director John Berry, the new organizational design will streamline agency operations while improving its delivery of services to the American public.

OPM’s five new primary divisions include: Employee Services, led by Nancy Kichak; Retirement and Benefits, led by Kathy McGettigan; Merit System Audit and Compliance, led by Jeff Sumberg; Federal Investigative Services, led by Kathy Dillaman; and, Human Resources Solutions, led by Kay Ely.

"Because of the hard work of OPM employees from throughout the agency, OPM is more streamlined and better able to give a clear understanding of its services and products,” Berry announced. “Now, all of OPM's customers - both internal and external - will know exactly where to go for answers. We began this process in April 2009 and are better positioned for whatever comes our way. "

The Employee Services division will tackle recruitment, employee development, labor and employee relations, veterans’ employment and internal human resources initiatives; the Retirement and Benefits division will administer the Civil Service Retirement System and Federal Employees Retirement System among other retiree related programs; the Merit Systems Audit Compliance division will oversee implementation of merit system principles and related civil service requirement across federal agencies; the Federal Investigative Services division will support federal security clearance procedures to safeguard national security; and, the Human Resources Solutions division will partner with agencies to develop and maintain a high quality public workforce.

In addition to the agency’s reorganization announcement, OPM proposed several regulation changes in the December 31 edition of the Federal Register which would modify the Federal Employees’ Group Life Insurance (FEGLI) Program to expand access to the popular coverage plan for civil servants deployed overseas in either a military support role or if called into active military duty.

Under OPM’s proposed adjustments, civil servants categorized as “emergency essential” employees or employees deployed in support of military operations would be able to elect any of three FEGLI plans: Basic, Standard (Option A) and Additional (Option B) coverage options.

Basic insurance equals either an employee’s annual basic pay rounded to the next even $1,000 plus $2,000, or $10,000, whichever is greater. Standard coverage offers a flat $100,000 payment. Additional coverage insurance provides coverage amounts equal to one, two, three, four or five times your annual rate of basic pay.

The new regulations would also maintain the enrollment of civil servants called into active duty service in FEGLI for two years, the first year’s coverage completely paid for by the government. The deployed employee would pay the entire cost of the insurance during the second year. OPM has requested any comments on the agency’s proposals be submitted for consideration by March 1, 2010.

For more information on OPM’s reorganization or proposed regulations, please visit: www.opm.gov.

GSA ISSUES 2010 REIMBURSEMENT RATES

Federal employees driving personal vehicles while conducting government business will receive fifty cents per mile in travel reimbursements during 2010, according to a January 4 General Services Administration (GSA) announcement, marking a five cent decrease over the previous year’s rate. The figure matches the standard mileage rate set by the Internal Revenue Service for calculating deductable costs of private vehicle operation, which GSA is prohibited by law from exceeding.

GSA also adjusted mileage reimbursements for federal employees operating personal motorcycles or flying private planes for government business: reimbursement for motorcycle use dropped from 52 cents per mile to 47 cents, while jet travel increased five cents, from $1.24 to $1.29 per mile.

The rates for 2010 took effect on January 1. For more information on GSA’s reimbursement rates, please visit: http://www.gsa.gov.

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GET INVOLVED AT THESE EVENTS!

REGISTER TODAY FOR FMA’S 72nd ANNUAL NATIONAL CONVENTION!
Early Bird Registration Ends on January 22: Sign Up Now!

Registration is now available for the Federal Managers Association’s 72nd annual National Convention and Management Training Seminar. Held March 14-17, 2010, in Arlington, Virginia, the Convention will feature a mix of association business, management training and FMA’s annual lobbying day, Day on the Hill. Office of Personnel Management Director John Berry will kick off the training day, which will feature four panels of experts covering topics from the recent changes to the federal government’s Thrift Savings Plan to strategies to enhance operations in the workplace.

Early bird registration is available through January 22, 2010. For more information or to register, please visit: http://www.fedmanagers.org/public/events.cfm. If you have any questions regarding the Convention, please contact FMA at (703) 683-8700.

HUMAN CAPITAL MANAGEMENT: DEFENSE (HCMD) 2010
February 16-19, 2010
Sheraton National Hotel, Arlington, VA

Human capital management is crucial to the success of our national defense. Operating in a time of uncertainty, human resources managers and practitioners throughout the Department of Defense (DOD) community are making decisions today that will significantly impact DOD's ability to meet the challenges ahead. How is the new Administration, the changing global security landscape and the current economy impacting human capital management for Defense today and tomorrow? At HCMD 2010, you will hear in-depth presentations from the top strategy setters and policy makers on current and future Military and Civilian Human Capital Initiatives, as well as real life success stories on their implementation at all levels throughout DOD. FMA members will receive a $200 discount for attending. Please use booking code 10665004XX66CL.

For more information, please visit: http://www.wbresearch.com/hcmdusa/lpfma.aspx?mac=10665004XX66BA&cm_mmc=External-_-10665.004-_-Federal%20Managers%20Association-_-Homepage.

DEFENSE FINANCE 2010
March 25-26, 2010
Hilton Alexandria Mark Center, Alexandria, VA

Defense Finance has become the meeting place for Department of Defense financial experts to present updates, share lessons learned and test new ideas for improving and transforming defense finance business operations in support of the war fighter. As you continue the struggle to successfully transform your financial operations, the annual Defense Finance conference is a trusted resource you can depend on to arm you with the tools you need to achieve your goals. Register now and FMA members will receive a $200 discount with booking code 10479XQ99CL.

For more information, please visit: http://www.wbresearch.com/defensefinanceusa/.

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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 and Roth, P.C. SBR concentrates its law practice on the representation of Federal employees, with a special emphasis on the representation of executives and managers. SBR 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

Washington Report Archives