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Federal Managers Association
Washington Report
June 4, 2007
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Untitled Document
FMA WORKING FOR YOU! FMA SENDS LETTER TO APPROPRIATORS ON SSA BUDGET FMA National President Darryl Perkinson addressed his concerns with the funding level for the Social Security Administration (SSA) budget for fiscal year 2008 in a letter to Representative David Obey (D-Wis.), Chairman of the House Appropriations Committee, and Ranking Member Jerry Lewis (R-Cali). On behalf of the managers and supervisors at SSA, Perkinson requested support for the $10.1 billion in SSA’s Salaries and Expenses account as was agreed to in the Concurrent Resolution on the Budget for Fiscal Year 2008 (S.Con.Res. 21). In his FY08 budget request, the President proposed $9.597 billion for SSA Limitation on Administrative Expenses, $843 million less than the former - SSA Commissioner’s request of $10.44 billion. The Commissioner calculated the request in order to best deal with the agency’s backlog challenges, which Perkinson emphasized to the committee. “SSA needs the additional funds to address the severe backlog in disability hearing requests. The President’s request is insufficient as the number of disability claims pending, as well as the average time to process those claims, will rise if the President’s request is appropriated,” wrote Perkinson. The number of pending hearing requests at the Office of Disability Adjudication and Review (ODAR) currently total over 730,000. The average processing time is now over 500 days, and in some offices it is as high as 800. Perkinson concluded his letter by saying, “Programs administered by SSA provide benefits to more than 50 million Americans. We, at FMA, believe that the level of funding proposed by the President falls too short of the mark for SSA to serve its customers, and your constituents, efficiently. We urge you to show your support by supporting the $10.1 billion of funding laid out in the budget resolution.” To view a copy of the letter, please visit FMA’s Members Only section at: www.fedmanagers.org. FMA URGES CONGRESS TO REMOVE TERM LIMITS FROM FARM BILL In a letter to Representative Colin Peterson (D-Minn.), Chairman of the House Agriculture Committee, and Ranking Member Bob Goodlatte (R-Va.), FMA National President Darryl Perkinson expressed concerns with the current farm loan term limits and the stress such limits place on our nation’s ranchers and farmers. In his letter on behalf of the managers and supervisors in the United States Department of Agriculture Farm Service Agency (USDA – FSA), Perkinson requested removal of these term loan limits in the creation of the 2007 Farm Bill. Under the current system, a customer who is unable to obtain credit from commercial sources can only receive loans from the agency for seven to ten years, at which point the farmer or rancher must either have built up a strong enough credit to go to a private lender or face the alternative of being unable to sustain their operations. Term limits fail to contain any exemptions for farmers or ranchers faced with natural disasters, falling prices, or random occurrences that may negatively impact production capacity. As Perkinson wrote, “Term limits are hard and fast dates that set forth a get lucky or get out mandate seemingly unsuitable for a need based federal farm loan program. The reality is many needy farmers and ranchers are unable to apply for loans because of these arbitrary term limits.” Perkinson further emphasized that abolishment of term loan limits would not impair the loan making structure or create an unbalanced risk for the federal government, but would result in better utilization of government resources for such a profoundly helpful program. “The amount of capital required to maintain a viable farming operation is staggering, and we at FMA firmly believe it is in everyone’s best interest to equip our farmers and ranchers with the necessary tools to continue growing in the face of fluctuating markets and unique agricultural environments,” Perkinson concluded. To view a copy of the letter, please visit FMA’s Members Only section at: www.fedmanagers.org. ************************************************************* WHAT’S HAPPENING ON CAPITOL HILL? FY08 DEFENSE AUTHORIZATION BILL AWAITS FULL SENATE APPROVAL The Senate Armed Services Committee recently concluded its markup of the National Defense Authorization Bill for fiscal year 2008 (S. 567), adding several provisions that Ranking Member John McCain (R-Az.) argued will improve how the Pentagon purchases new weapons systems, ensure that taxpayers’ money is spent in the most effective manner, and maintain the combat capabilities of the U.S. Military. McCain and Senator Claire McCaskill (D-Mo.) co-sponsored disclosure language in order to improve accountability, demonstrating the committee’s intent to take a firm stance on earmarks. “ Maximizing the transparency of Members’ requests is fundamental to good governance. As stewards of taxpayers' dollars, it is our duty to spend the people's money responsibly, and to do it in an open and honest fashion,” McCain stated. Under the Senate version of the bill, information on all spending requests (i.e. earmarks) not submitted by the Bush Administration will be easily accessible by the public at least 48 hours before consideration of the bill. The committee also approved the House provision to repeal the collective bargaining rights and disciplinary appeal rights portions of the National Security Personnel System (NSPS), the new system of personnel reforms proposed by the Department of Defense. Development of a pay-for-performance system could continue as long it abides by existing federal labor relations law. The bill maintains a total budget of $648.8 billion as requested by the Bush Administration, but $12 billion has been moved from the $141.8 billion war-related budget request to the $507 billion base budget request. The 3.5% across-the-board pay raise for uniformed personnel remained unchanged and is a leading indicator of the pay increase civilian federal employees can expect. The bill awaits a vote in the Senate. A copy of the Senate Armed Services Committee complete markup can be found at http://armed-services.senate.gov. CONFLICTING VIEWS ON DHS PERSONNEL SYSTEM REFORMS In a blow to the Administration, two bills making their way through Congress would essentially strip the Department of Homeland Security (DHS) of its authority to implement a new personnel system, MaxHR. As part of the Department of Homeland Security Authorization Act for Fiscal Year 2008 (H.R. 1684), the House of Representatives voted to halt funds for the DHS personnel system, as a matter of policy. On the heels of the authorization bill, the House Appropriations Homeland Security Subcommittee voted to cut off all funding for the system. Congress has limited funding for the reforms in the past, but this is the first time it has acted to remove funds all together. However, in an assessment of the implementation of the department’s personnel system, the Office of Personnel Management (OPM) urged the agency to move forward with the pay-for-performance and job classification portions of the new system. In a May 2007 report, OPM found that DHS “ effectively planned for implementing, and is making progress with, its performance management system” and recommended that the agency continue with this momentum by incorporating the parts of the system that haven’t been implemented yet. In addition, both bills would extend law enforcement officer (LEO) status to certain Customs and Border Protection employees for retirement purposes. Currently, a number of federal law enforcement officers – men and women who carry guns, investigate crimes, and protect our citizens – are not eligible for the same benefits and early retirement as their fellow officers in other agencies. The Homeland Security Authorization bill is currently awaiting action by the Senate Homeland Security and Governmental Affairs Committee; the Homeland Security Appropriations bill will be considered by the full Appropriations Committee later this week. For more information on these bills, visit: www.thomas.loc.gov. SENATE FINANCE COMMITTEE HEARS OPINIONS ON SSA BUDGET On May 23, the Senate Finance Committee held on hearing on the funding problems at the Social Security Administration (SSA) and the impact fiscal year 2008 could have on the current disability claims backlog. Withing the SSA Office of Disability Adjudication and Review (ODAR), there currently exists a backlog of over 730,000 requests for a hearing. It takes an average of 505 work days to process a typical request for hearing. At the beginning of 2002, SSA had 468,262 pending hearing requests. In five years, that number increased to over 730,000, despite the fact that dispositions are at record levels. In his opening statement, Chairman Max Baucus (D-Mont.) outlined several examples of the devastating effects the backlog is having on people in Montana. The Chairman also mentioned what FMA has been telling Congress for years – insufficient funding equals the inability of SSA to fulfill its mission. In his statement he said, “ One reason that these backlogs exist is that there are not enough staff to process the cases and the appeals. The reason for the shortage of staff is that the appropriations process does not give Social Security enough money to run its programs properly. And a key reason that appropriations are tight is the administration’s effort to constrain overall domestic spending.” Appearing before the Committee were: The Honorable Michael Astrue, Commissioner, Social Security Administration; Nancy Shor, Executive Director, National Organization of Social Security Claimants’ Representatives; Rick Warsinskey, President, National Council of Social Security Management Associations, Inc. Cleveland, Ohio; and, Chuck Schimmels, President, National Association for Disability Examiners. Common among the testimonies of the panel was the need to fix the backlog problem at the Social Security Administration with increased funds from Congress for adequate staffing. Commissioner Astrue focused a significant amount of his testimony on hiring additional Administrative Law Judges (ALJs), while Shor and Warsinskey detailed the need for more support staff. The Commissioner justified the need for more ALJs by claiming that although the number of claims being filed has nearly doubled in five years, no new ALJs have been hired since 1999. Commissioner Astrue also outlined his plan to move several ALJs from the hearing offices to a centralized office to participate in more video hearings, which would cut down on travel time and costs. For more information on the hearing, please visit: http://finance.senate.gov/. SUBCOMMITTEES HOLD HEARING ON PERSONNEL REFORMS AT GAO On May 22, a joint session of the House Oversight and Government Reform Subcommittee on Federal Workforce, Postal Service, and the District of Columbia and the Senate Homeland Security and Governmental Affairs Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia was held to review the implementation of personnel reforms at the Government Accountability Office (GAO). In 2004, Congress granted GAO authority to make change to its personnel system and as a result, GAO implemented market based pay and pay-for-performance measures. During the transition to a market based pay system, BAND II of GAO’s pay band system was broken into two sections based on evidence gained during a study by Watson WyattWorldwide of salaries at GAO. As a result of this split, 25 percent of employees had the possibility of earning a higher salary than before the market based study. However, the study also found that some employees at GAO were being overpaid. As a result, the “overpaid” employees did not receive the congressionally approved pay raise. Many members of the subcommittee felt that those employees who did not receive the pay raise experienced a pay cut because of inflation and other increases in the cost of living. This was a point of contention between Comptroller General David Walker and the subcommittee and Walker strongly insisted that no employee took a pay cut as a result of the new personnel reforms. Members of the subcommittee also referenced previous testimony in which the Comptroller promised that any employee who received a “meets expectation” rating would not have their salary reduced. Comptroller Walker continued to argue that no one received a pay cut but promised to communicate more effectively with the subcommittee in the future. As some employees and members of the subcommittee are against the personnel reforms taking place at GAO, it is likely Congress will be playing a greater oversight role. Others like Max Stier from the Partnership for Public Service came out in strong support for the reforms and encouraged them to continue. In response, Comptroller Walker said, “I have a fiduciary and stewardship responsibility to focus not just on today but also to do what’s right for tomorrow. This requires me, among other things, to focus on what is in the collective best interest of all GAO’s employees rather that what might be in the narrow interest of some of GAO’s employees.” For more information please visit, http://oversight.house.gov ************************************************************* WHAT’S HAPPENING IN THE EXECUTIVE BRANCH? SUPERVISORS ARE MORE LIKELY TO BE DISCIPLINED FOR MISCONDUCT A recent Issues of Merit article published by the Merit Systems Protection Board (MSPB) tackled the common misconception that federal supervisors are not disciplined as often as non-supervisors. This article was in response to claims by many federal employees that agencies allow supervisors to get away with misconduct for which non-supervisors would normally be disciplined. In order to evaluate the claim, the MSPB looked to the Office of Personnel Management’s (OPM) Central Personnel Data File for an accurate picture of the disciplinary actions taken by agencies. The numbers alone showed that supervisors were disciplined less often than non-supervisor employees. However, MSPB noted that given the unique circumstances of supervisors, they needed to perform more comparative analysis of the data. To accomplish this analysis, MSPB looked for employees with similar characteristics in the workforce with the only difference between them being that one was a supervisor and the other was not. After this was finished, MSPB found that in fact supervisors face more adverse disciplinary actions than non-supervisors. An example from the article simplifies the findings: “Take a hypothetical white, 40-year-old, male, GS-14 supervisor in a particular agency with 15 years of service. Then look at another white, 40-year-old, male in the same occupation, grade and agency with the same length of service. If the only difference between these two individuals is status as a supervisor, the supervisor is MORE likely to experience an adverse action for cause.” For more information please visit, www.mspb.gov OPM PROPOSES CHANGES TO ADVERSE ACTION REGULATIONS Recent court decisions led to a proposed rules change by the Office of Personnel Management (OPM) in regards to the appeals rights of employees serving probation. Two court cases, Van Wersch v. Department of Health and Human Services and McCormick v. Department of the Air Force, resulted in decisions by the U.S. Court of Appeals requiring OPM to amend its interpretation of employees not entitled to U.S. Merit Systems Protection Board (MSPB) appeal rights. Prior to the court rulings, OPM excluded employees under probation or trial periods from many appeal rights offered under MSPB. To conform to the court rulings, OPM must align its definition of “employee” with that offered by the court. Under this new definition, employees will secure various appeal rights including advance notice of the reason for an adverse action (which includes removal, suspension, reduction in grade or pay, and furlough of 30 days or less), reasonable time to present a response to the action, right to fair representation by an attorney or other, early notice of final decision, and the right to appeal to the MSPB. Individuals not meeting the definition of “employee” are not afforded these same rights. The OPM proposal for adjustment to conform to the Court’s interpretation of the statue may be found in the May 1st edition of The Federal Register at the U.S. Government Printing Office Web site http://www.access.gpo.gov/. OPM will be receiving public comments until July 2, 2007. GAO RELEASES REPORT ON DIVERSITY IN THE SES On May 10, the Government Accountability Office (GAO) released a report detailing trends in the hiring process of women and minorities in the Senior Executive Service (SES), which represents the most experienced division of labor within the federal workforce. Presented before the House Oversight and Government Reform Subcommittee on the Federal Workforce, Postal Service, and the District of Columbia, and accompanied by various testimonials from minority groups, the GAO report entitled HUMAN CAPITAL: Diversity in the Federal SES and the Senior Levels of the U.S. Postal Service includes figures through fiscal year 2006 extracted from the Office of Personnel Management (OPM). The hearing addressed concerns of under-representation by women and minorities in the SES. Though GAO data displayed increases in representation over a six-year period, women comprise only 28.4% of SES, which numbers 6,349 total individuals, while minorities account for only 15.9%. William Brown, President of the African American Federal Executive Association, Inc., explained to the subcommittee that knowledge of the under-representation of women and minorities has failed to result in any significant steps to create an SES that “represents the mosaic of America.” As the SES is largely comprised of federal employees with many years of experience behind them, retirement eligibility figures highlight the potential for roughly 90% of SES members to exit service in the next 10 years. The subcommittee members and those presenting testimony viewed the potential for a dramatic exodus of individuals from the SES via retirement as a mixed blessing; while a gap in leadership may temporarily exist, women and minorities may fill a greater percentage of the vacant spots. As Brown stated, a greater emphasis on developmental programs must be attained to diversify the senior workforce. A copy of the GAO report can be found at: www.gao.gov NEW FEDERAL JOB WEB SITE LAUNCHED BY PRIVATE SECTOR COMPANY Careerbuilder.com, in coordination with the Partnership for Public Service, recently launched a new Web site, WorkForAmerica.com, developed to utilize the power of the Internet in an effort to attract more people to careers in public service. “The U.S. labor force is shrinking as a large number of baby boomers retire and smaller generations enter the workforce,” said Stan Paul, general manager of CareerBuilder.com’s Government Services Group. “Federal government employers are competing with both the public and private sector for top talent and are becoming more aggressive in attracting qualified candidates to their agencies. Realizing the expansive reach of the Internet, more government employers are adopting online recruitment as an integral part of their recruitment strategy.” The site aims to expedite the recruitment and hiring process by connecting qualified candidates with federal agencies. Beyond simply searching for a job and connecting candidates with agencies, the site also provides information on building your resume, gives job advice on an a number of issues including the differences between public and private careers, news from the government, and most notably a section on career fairs so that you can meet with recruiters face to face to learn more about public service. Careerbuilder.com is the nation’s largest online job site with a database of over 1.5 million jobs. It has seen on average 1.2 million job searches each month for government positions. With this new government specific site, agencies will have the opportunity to better introduce themselves to possible candidates through the sites “BrandBuilder” pages. These pages allow agencies to provide more detailed information about the work they do and the benefits of working there. “The federal government offers unique opportunities for job seekers that can’t be found in the private sector,” said Paul. “WorkforAmerica.com provides job seekers a means to explore job avenues they may have never known about and join organizations that have a national impact.” ************************************************************ GET INVOLVED AT THESE EVENTS! REGISTRATION FOR FMA’S 16TH MID-YEAR CONFERENCE NOW AVAILABLE! Please join us for FMA’s 16th Mid-Year Conference and Management Training Seminar, August 22 – 25, 2007 in San Francisco, California! This year’s Conference, Federal Management: A Golden Gate to a Career of Service , will be held at the Mark Hopkins Hotel. Conference attendees will receive a special room rate of $130/night. You can make reservations by calling the hotel at 1-800-381-9552. Be sure to ask for the special rate for the Federal Managers Association group, code V65. Reservations must be made by July 21, 2007. FMA members are now able to register via FMA’s Web site at www.fedmanagers.org. Fees for the Conference are as follows: Early-bird: $315 (until June 29, 2007), Regular: $365, (until August 3, 2007), and Late: $400 (until August 17, 2007). Please continue to check FMA’s Web site for the most up-to-date information! REGISTRATION NOW OPEN FOR THE 22nd ANNUAL FEDERAL DISPUTE RESOLUTION CONFERENCE Register today for FDR XXII, scheduled for July 29 - August 2, 2007 in San Francisco, CA! The FDR Conference is an annual training program for federal managers and employees that provides in-depth training on federal employment laws, policies and procedures. The Annual FDR Conference is known as a premier conference for the federal workforce and is a complete training solution for professionals within the dispute resolution arena. Attendees are able to design their own training schedule by choosing from over 40 workshops in the following five areas: ADR/Mediation, HR/LR/ER, EEO, Dispute Prevention and Leadership Development and Legal Issues. Over 1,000 federal managers and employees attend the FDR Conference each year! For more information and details about the conference, visit http://www.fdrconferences.org/Conference.html. ************************************************************ Long Term Care Partners, LLC , New FMA Corporate Partner. Long Term Care Partners is the administrator of t he 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. Blue Cross Blue Shield Association Federal Employee Program , FMA Sustaining 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. Wright & Co. , FMA Sustaining Corporate Partner: Wright & Co. has provided supplemental insurance programs to the Federal government for over 40 years. They have built strong relationships with insurance companies and service providers to offer these comprehensive benefits at low, affordable group insurance rates. Benefits include: Dental Insurance Plans; Term Life Insurance Plans; Accidental Death and Dismemberment Plan; and Personal Umbrella Plan. Wright & Co. is also the originator of the Federal Professional Liability Program and provider of Disability Income Replacement coverage, underwritten by The Hartford, to all Federal employees. For more information, please visit: www.wrightandco.com 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. Today GEICO has a special program established to support the Federal community. GEICO’s Federal program participates in the following organizations and programs: GEICO Public Service Awards, which have honored Federal workers (active and retired) who have contributed to the public good since 1980; and GEICO Federal Leave Record Cards, which for over 40 years have been provided by GEICO to Federal employees, free of charge, to help them track their annual leave. Find out how much you could save with GEICO auto insurance as an FMA member by getting a line-by-line rate quote at: www.geico.com 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 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. FMA’s leadership fully recognizes the need to prepare career-minded federal employees to manage the demands of the 21st century workplace with greater competence and fully supports this unique and comprehensive certificate program. For more information, please visit: www.managementconcepts.com/fmp/fmpodp.asp
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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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