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Federal Managers Association

Washington Report

May 24, 2010

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Untitled Document

FMA WORKING FOR YOU!

FMA LETTERS TO CONGRESS SHED LIGHT ON EXTENT OF NSPS PAY CAP

Roughly 40,000 civil servants in the Department of Defense (DOD) may face a decrease in future pay as they transition out of the failed National Security Personnel System (NSPS), Federal Managers Association (FMA) National President Patricia Niehaus told members of the House and Senate Armed Services Committees in a letter on May 14. Niehaus said those facing a potential cap on pay represent employees who routinely displayed above average performance under the repealed personnel system, calling the dilemma “unacceptable” and urging lawmakers to remedy the inequity.

The Fiscal Year 2010 National Defense Authorization Act (P.L. 111-84) signed into law last fall included a provision repealing the Pentagon’s pay-for-performance NSPS program. Under the law, DOD must transition civil servants enrolled in the program back to their previous personnel systems, in most cases the General Schedule (GS), by December 31, 2011. While the law explicitly states no employee shall lose or see a decrease in pay through the transition, the language does not prevent DOD officials from freezing the pay of top performers due to current GS rules on pay retention. Employees potentially subject to retained pay are those whose current pay exceeds step 10 of the GS level to which they are slated to return.

“Employees who continuously displayed above average performance under NSPS would be affected greatest, which sends the message that performance is not recognized in the federal workplace,” said Niehaus. “Pay retention does not only affect the current pay received by these employees but could also negatively impact their high-3 average salary, which is used to calculate retirement benefits.”

Although DOD has yet to release specific numbers of those who may be subject to pay retention, FMA conducted an extensive internal survey of its membership serving in DOD to determine the potential extent of the pay cap. According to FMA’s findings, approximately 20 – 25 percent of DOD civilians could face a decrease in future pay as a result of the conversion out of NSPS, representing 40,000 employees. Niehaus said many of those facing a pay cap have crunched the numbers and determined they will remain under pay retention until they retire.

“As members of the Federal Managers Association prepare to transition out of NSPS,” Niehaus continued, “I respectfully request that you take action to ensure high-performing DOD civil servants receive the compensation they have rightfully earned before they are forced to endure the effects of this unjust policy.”

The Senate Homeland Security and Governmental Affairs Subcommittee on the Oversight of Government Management is scheduled to hold a hearing on the issue on June 9. The Subcommittee has invited FMA to testify during the hearing.

To view a copy of the letter sent to the House and Senate Armed Services Committees, please visit the Members Only section of FMA’s Web site: http://fedmanagers.org/membersvc/presidentletter.cfm.

FMA URGES SSA TO MAINTAIN MOMENTUM ON HEARINGS BACKLOG

Although the Social Security Administration’s (SSA) Office of Disability Adjudication and Review (ODAR) has made significant strides in combating the backlog of pending disability hearing requests, Congress and the President must continue to provide SSA with adequate funding to build on its momentum, the Federal Managers Association (FMA) stated in written testimony to Congress. In addition to the need for funds to provide manpower and resources to eliminate the backlog, SSA must also enhance coordination among regional ODAR offices to ensure an even distribution of hearing requests, FMA continued.

FMA submitted testimony for the record in response to statements made during a joint hearing concerning the backlog held by the House Ways and Means Subcommittees on Social Security and Income Security and Family Support. Members of the subcommittees praised ODAR for reducing the backlog by ten percent since December of 2008, when the number of pending hearing requests hit an all-time high of 768,540 cases. That number now stands at 695,000 cases.

FMA commended Congress, the President, and SSA Commissioner Michael Astrue in the Association’s testimony for their commitment to tackling the backlog, but noted that the inconsistency among dispositions processed by Administrative Law Judges (ALJs), which ODAR uses to measure office productivity, varied significantly across regions, a cause for concern. Although average ALJ processing times have improved over the last few years, FMA noted, ALJs in some offices were able to process almost three times as many cases as others in separate locales.

“The inconsistency among regions and offices in this regard is alarming,” FMA stated. “In Honolulu, ALJs are averaging 3.68 dispositions per day, while in Miami, ALJs are only disposing 1.27 dispositions per day. The math is clear. Without holding ALJs to a stronger level of production and supplying them with adequate staff to prepare cases, we will never fully eliminate the backlog.”

The number of cases pending per ALJ is also cause for alarm, FMA continued, noting that the average ALJ in the Dallas region faces 440 cases while the average Denver-based ALJ faces 703 cases. Individual offices also experience this variance, ranging from a low of 114 pending cases to a high of 1,336 cases per ALJ. Matching the appropriate number of clerical support staff to each ALJ while simultaneously assigning more staff to offices burdened by larger backlogs is imperative to further drive down the total number of pending hearing requests, said FMA.

Ultimately, success in eliminating the backlog of cases lies with increased funding for the agency. In order to continue efforts to reduce the backlog, FMA urged Congress to pass the President’s 2011 budget request of $12.4 billion for SSA’s Limitation on Administrative Expenses account before the start of the fiscal year.

"Under his budget, the agency would be able to process tens of thousands of more hearings. It is estimated that forty percent of SSA’s employees will retire by 2014 and with full funding for FY11, the agency estimates it will hire 70 ALJs and maintain at least a 4.5:1 ALJ to staff ratio," FMA concluded.

To view a copy of FMA’s written statement, please visit the Association’s Web site: www.fedmanagers.org.

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WHAT’S HAPPENING ON CAPITOL HILL?

SENATE APPROVES HIRING REFORM LEGISLATION

On the heels of an Executive Memorandum released on May 11 calling for widespread reforms to the federal government’s recruiting and hiring process, the Senate approved legislation designed to further streamline how the government attracts and employs prospective civil servants. The Federal Hiring Process Improvement Act (S. 736), introduced by Senators Daniel Akaka (D-Haw.) and George Voinovich (R-Ohio), includes many of the modifications contained in the Memorandum while further simplifying and streamlining federal application procedures.

As Chairman and Ranking Member of the Senate Homeland Security and Governmental Affairs Subcommittee on the Oversight of Government Management, respectively, the pair have pushed extensively for hiring reform over the past few years. The Subcommittee held hearings in both 2008 and 2009 examining the government’s hiring process and analyzing impediments facing potential applicants. From requiring agencies to post job vacancies in plain language, to mandating candidates receive timely notifications of their application status, S. 736 seeks to address current obstacles Senator Akaka believes impede the federal government’s ability to usher in the next generation of civil servants.

"The federal government must adapt to meet the best practices of the private sector for hiring in order to be the nation's employer of choice,” Sen. Akaka stated. “The Federal Hiring Process Improvement Act will make sure efficient, common sense hiring practices are used government-wide and that these practices last through time."

Similar to the President’s hiring Memo, S. 736 calls for abolishment of the knowledge, skills, and abilities (KSAs) essays required of current applicants, transitioning agencies to a résumé- and cover letter-based approach. The legislation also requires agencies take an average of 80 days to fill a vacant position, starting from when that vacancy is first identified and ending with the presentation of an offer. Agencies would also be required, within ten days, to notify all applicants who applied for a job that the position is no longer available once it is filled.

"I am pleased the Senate has passed this common-sense legislation that will streamline agencies' broken hiring systems,” Senator Voinovich commented. “To be an employer of choice, the government must understand what the competition is doing and adapt to the changing environment. We must make sure our processes result in hiring the right person, at the right place, at the right time to get the job done for current and future generations of public servants."

To view a copy of S. 736, please visit: http://thomas.loc.gov.

FEDERAL CAREER INTERNSHIP PROGRAM DRAWS SUBCOMITTEE IRE

Members of the House Oversight and Government Reform Subcommittee on the Federal Workforce, Postal Service, and the District of Columbia clashed with Office of Personnel Management (OPM) Director John Berry over the role and authority of the Federal Career Internship Program (FCIP) during a hearing held on May 19. Members of the Subcommittee charged agencies with actively using FCIP to circumvent competitive hiring processes and evade veterans’ preference requirements.

Individuals are appointed to a two-year federal internship under FCIP, generally in GS-5, 7, and 9 equivalent positions. If they meet set performance standards, FCIP interns are eligible for permanent employment within their agency without having to navigate customary competitive hiring procedures. Subcommittee Chairman Stephen Lynch (D-Mass.) and other lawmakers present during the hearing expressed serious concern over OPM’s lack of oversight of the program, which in 2003 featured 400 interns but exploded to include roughly 28,000 individuals over the next seven years. Delegate Eleanor Holmes Norton (D-D.C.) said she was shocked by the program’s massive expansion.

In his testimony, Berry detailed the Administration’s Veterans Employment Initiative, issued in November 2009, which he said is committed to increasing the number of veterans serving in the federal workforce. The President’s recently released Executive Memorandum on hiring reform, Berry assured the Subcommittee, retains the Administration’s pledge to uphold merit principles and veterans’ preference in the hiring process. His words, however, were met with skepticism from both sides of the aisle, bolstered by testimony presented by Tim Embree, Legislative Associate for the Iraq and Afghanistan Veterans of America. When asked point-blank if the federal government is successful in opening its hiring arms to combat veterans, Embree emphatically responded “no.”

“Veterans coming home from war should be able to expect strong hiring support from the federal government,” Embree told the Subcommittee. “The federal government hires nearly three times as many veterans as the civilian business community but this comparison is disingenuous: being three times better than poor is nothing to brag about.”

Embree criticized the employment of veterans outside of the Departments of Defense, Veterans Affairs, and Homeland Security, which he said stands at less than ten percent of the workforce. While avoiding the abrasive criticism of FCIP displayed by other witnesses on his panel, Embree said use of the program resulted in unintended negative consequences for veterans.

“Disturbing, however, are the programs that have been created over the years which, in practice, assist hiring managers in avoiding hiring our nation’s veterans,” Embree continued. “Programs such as the Direct Hire Authority, Federal Career Internship Program, Student Career Experience, Presidential Management Fellows, and Outstanding Scholars Programs facilitate the federal hiring process, but inadvertently allow agencies to dodge employing veterans.”

Legislation (H.R. 3264) introduced by Congressman Gerry Connolly (D-Va.), which the Federal Managers Association (FMA) officially endorsed last week, would provide further oversight of federal internship programs with the goal of converting more federal interns to full-time positions. The private sector, Connolly noted during the hearing, converts almost fifty percent of internships to full-time hires, while the federal government boasts a six percent retention rate. Connolly argued the federal government cannot continue to see its interns opt for private sector positions, and greater effort must be made to improve the internship experience to encourage individuals to pursue careers in public service.

More information on the hearing may be found on the House Oversight Committee’s Web site: http://oversight.house.gov.

HOUSE PASSES RESOLUTION RECOGNIZING EFFORTS OF CIVIL SERVICE

Members of the House of Representatives approved a resolution (H.Res. 1187) introduced by Congressman Jim Moran (D-Va.) on March 16 expressing Congress' appreciation for the work conducted by America’s civil servants and supporting the safety and security of all federal workers in light of recent attacks on government employees.

“The tragedy at Fort Hood, the attack on an IRS building in Texas, and the shooting at the Pentagon are nothing less than acts of domestic terrorism targeting government employees,” said Rep. Moran. “This measure reminds Congress of the need for continued diligence in our efforts to protect the public from terror threats both abroad and sadly enough, here at home.” 

Seventy-three fellow Representatives signed on as cosponsors to the resolution, which urged the federal government to improve the safety and security of its workforce. According to Congressman Moran’s Web site, more than 1,200 assaults against federal employees were documented between 2001 and 2008, with 200 resulting in convictions. The Justice Department investigates approximately 300 such cases per year.

To view a copy of H.Res. 1187, please visit the Library of Congress Web site: http://thomas.loc.gov.

LAWMAKERS DEBATE CIVIL SERVICE-CONTRACTOR WORKFORCE MIX

Federal agencies must take a measured approach when developing plans to restructure their employee-to-contractor workforce mix, Office of Management and Budget (OMB) Federal Procurement Policy Administrator Daniel Gordon told lawmakers last Thursday. The Administration, in pushing for clarification of what work should be performed by civil servants or by contractors, is not intent on pursuing an end to the outsourcing of federal functions, Gordon asserted, but rather in striking the best balance to serve the American taxpayer.

Members of the Senate Homeland Security and Governmental Affairs Subcommittee on Oversight of Government Management called the May 20 hearing to discuss a policy letter issued by the Office of Federal Procurement Policy (OFPP) redefining work deemed “inherently governmental.” Released on March 31, the letter concluded agencies should adopt the definition contained in the Federal Activities Inventory Reform (FAIR) Act of 1998 when determining which jobs must be performed by federal employees and which may be outsourced. The determination spawned from a 2009 Executive Memorandum on Government Contracting judgment that the line between inherently governmental and contractor functions have become blurred.

In his testimony, Gordon told lawmakers he believed final approval of the OFPP letter would not result in mass movement away from the use of contractors coupled with a significant wave of federal hiring. Rather, each agency is expected to identify where rebalancing the civil servant-to-contractor ratio may be necessary, Gordon continued, while also focusing greater attention on the management of those positions covered by contracted workers. Gordon noted the President’s proposed investment in securing an adequate acquisition workforce, which stands at $158 million for federal agencies in his fiscal year 2011 Budget.

“In many cases, overreliance on contractors may be corrected by allocating additional resources to contract management,” Gordon said. “In other words, rebalancing does not require an agency to in-source, that is, to convert work from a contract to in-house performance, provided the agency can hire, retrain, or reassign sufficient federal employees with the requisite skills at managing contractors to maintain control of their activities.”

Subcommittee Chairman Daniel Akaka (D-Haw.), referencing findings by the Government Accountability Office, voiced concern that agencies’ increasing reliance on contractors has afforded outside companies greater influence in the government’s decision-making process. Gordon said that in situations where this is the case, and the work contractors are conducting is found to be inherently governmental, agencies “must act expeditiously to in-source by developing and executing, on an accelerated basis, a hiring plan to convert the work to performance by federal employees.” Ranking Member George Voinovich (R-Ohio) cautioned that such efforts could lead to injudicious employment of hiring authorities, including the contested Federal Career Internship Program, as agencies seek to hire the necessary staff. Gordon said the hiring reform initiative proposed by the President should help agencies bring on any additional staff they need in an expeditious and legitimate manner.

More information on the hearing may be found on the Committee’s Web site: http://hsgac.senate.gov.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

PRESIDENT UNVEILS EXTENSIVE HIRING REFORM MEMO

By November 1 of this year, applicants for positions in the federal government will no longer have to submit detailed essays describing the knowledge, skills and abilities (KSAs) they possess. An Executive Memorandum calling for extensive reforms to the federal government’s recruitment and hiring process eliminates the KSA portion of the federal application, while also enacting additional procedural adjustments designed to streamline the government’s ability to attract and employ highly-skilled individuals.

Issued on May 11, the Memorandum requires federal agencies accept résumés and cover letters in lieu of KSAs when looking to fill vacancies, though agencies may allow applicants to complete a plain-written application. The Memo also terminates the hiring “rule of three,” which limited agencies’ employee selection options to only the top three candidates. Instead, the Memo directs agencies to utilize a “category rating” system, which enables hiring managers to tap into a larger pool of applicants while still upholding merit principles and veterans’ preference.

In addition, the President’s Memorandum instructs agencies to include managers and supervisors in the hiring process to a greater degree, specifically involving them more extensively in workforce planning, recruitment and the interviewing process. As a result, agencies are directed to hold managers more accountable for the quality of their hires and for improving the process of onboarding their new employees.

“To deliver the quality services and results the American people expect and deserve, the federal government must recruit and hire highly-qualified employees, and public service should be a career of choice for the most talented Americans,” the President stated. “Yet the complexity and inefficiency of today's federal hiring process deters many highly qualified individuals from seeking and obtaining jobs in the federal government.”

“The ability of agencies to perform their missions effectively and efficiently depends on a talented and engaged workforce, and we must reform our hiring system to further strengthen that workforce,” the President concluded.

Agency heads must act on the Memo’s directives no later than November 1. The Office of Personnel Management is instructed to establish a timeline and benchmarks for agency adherence within 90 days of the Memo’s release, and will produce a goal-focused and data-driven system to hold agencies accountable.

To view a copy of the Memo, please visit: http://www.whitehouse.gov/the-press-office/presidential-memorandum-improving-federal-recruitment-and-hiring-process.

MSPB REACHES OUT FOR FEDERAL WORKFORCE RESEARCH IDEAS

Do you know an issue related to federal workforce management that deserves greater attention? If so, the Merit Systems Protection Board (MSPB) is seeking your input as it crafts its research agenda for the next three years.

In a letter directed to members of the federal community, MSPB, an independent agency that guards federal merit system principles, called for input to tailor its research to the requests of stakeholders. Federal employees, supervisors, unions and other employee groups are encouraged to submit ideas. Topics recently covered include: employee engagement; fair and equitable treatment; managing poor performers in the workplace; and, utilization of job simulations as federal hiring tools.

Anyone interested in submitting proposals should take part in a brief survey on MSPB’s Web site (www.mspb.gov/studies) or email ideas to research.agenda@mspb.gov.

SELECT SENIOR EXECUTIVES HONORED WITH TOP CIVIL SERVICE AWARD

Federal agency leaders honored distinguished members of the Senior Executive Service (SES) during the 25th Annual Distinguished Rank Awards Banquet hosted by the Senior Executives Association (SEA) on May 6. Keynoted by Secretary of State Hillary Clinton, the event recognized the accomplishments of several SES members, only one percent of whom are eligible for the annual awards.

The Presidential Ranks of Distinguished Executive and Distinguished Professional awards are the highest honor members of the nation’s civil service may receive. Though the achievements of this year’s award recipients vary significantly, SEA determined those honored directly contributed to over $49 billion in federal government savings through the programs and initiatives they led.

“I have long admired the dedication of the people whose names rarely if ever make it into any headlines, but who are the backbone, the nervous system, the intelligence of our government year after year,” Secretary Clinton said. “I wish every federal government employee could be recognized and thanked for his or her efforts.”

The Department of the Army boasted the largest number of Distinguished Rank award winners this year, with nine senior employees recognized for their contributions. The National Aeronautics and Space Administration and the Department of Commerce also claimed several award winners, featuring eight and seven recipients respectively.

A full list of the 2010 award winners and a sampling of their myriad accomplishments may be found on SEA’s Web site: www.seniorexecs.org.

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GET INVOLVED AT THESE EVENTS!

VISIT ELAWS WEB SITE FOR FEDERAL EMPLOYMENT LAW ADVICE!
Advisors Help Employees and Employers Understand Federal Employment Laws

A U.S.Department of Labor (DOL) Web site – elaws (Employment Laws Assistance for Workers and Small Businesses) – is a series of online advisors that help employees and employers understand their rights and responsibilities under numerous federal employment laws. These interactive tools help users determine if they are in compliance with federal employment laws by asking questions, providing information, and directing the individual to appropriate resolutions.

The elaws advisors are one of a number of compliance assistance tools developed to further DOL's dedication to provide clear, accurate and easy-to-access assistance for employers, and protect the wages, health benefits, retirement security, safety and health of America's workforce. The elaws advisors offer information on topics such as pay and overtime, workplace poster requirements, health benefits, reemployment rights for uniformed service members, and federal contractor compliance.

For more information, please visit: www.dol.gov/elaws.

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Long Term Care Partners, LLC, FMA Corporate Partner. Long Term Care Partners has administered the Federal Long Term Care Insurance Program (FLTCIP) since its inception in 2002. FLTCIP offers enrollees valuable protection from the potentially high costs of long term care. Enrollees can feel secure about the FLTCIP’s comprehensive coverage because the program is sponsored by the U.S. Office of Personnel Management (OPM) and insured by one of the nation’s leading insurers, John Hancock Life & Health Insurance Company. Individuals eligible to apply for coverage include Federal and U.S. Postal Service employees and retirees and active and retired members of the uniformed services, and their qualified relatives. For more information about eligibility, visit www.LTCFEDS.com/eligibility. For plan details and rates, visit www.LTCFEDS.com. Or, call 1-800-LTC-FEDS (TTY 1-800-843-3557) to speak with a Certified Long Term Care Insurance Consultant. The FLTCIP is medically underwritten, which means that you will have to answer questions about your health on your application. Certain medical conditions, or combinations of conditions, will prevent some people from being approved for coverage. You need to apply to find out if you qualify for coverage under this program.

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.

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