Federal Managers Association

President Clinton issued a similar order in 1993, but it was rescinded by President Bush in 2001. The Obama administration order will end after two years unless renewed by the President. To view a copy of the Executive Order, please visit: www.whitehouse.gov.

ASSOCIATION FIGHTS TO PROTECT NSPS EMPLOYEES’ PAY

Language contained in the FY10 National Defense Authorization Act (P.L. 111-84) repealing the Department of Defense’s (DOD) National Security Personnel System (NSPS) clearly states that no employee shall lose pay through the transition back to his or her previous personnel system. However, NSPS Acting Program Executive Officer Tim Curry stated in a Federal Times interview last week that thousands of employees will see their pay frozen when they move back into the General Schedule (GS). The reason? These employees constitute the exceptional performers who received large pay raises under NSPS, and their current salaries exceed the limits for their equivalent GS grade.

The Federal Managers Association (FMA) expressed concerns on multiple occasions throughout the NSPS reevaluation process conducted in the spring and summer of 2009 that employees who excelled under NSPS could face a cap on their pay due to current GS rules on salary retention. Given that the average pay raise under NSPS typically exceeded the average GS raise, FMA explained to Members of Congress and Pentagon officials alike that many DOD employees are now a GS level, or in some instances two, above where they were when they entered NSPS in terms of salary.

FMA National President Darryl Perkinson warned in a letter to leaders of the House and Senate Armed Services Committees that employees who were rated above average performance-wise under NSPS could be affected the greatest, and that these individuals should not have their pay negatively impacted because they were forced to endure a system they did not ask to be a part of. Although FMA’s concerns were shared in the final analysis of NSPS released last July by members of the Defense Business Board’s independent task group charged with evaluating the pay-for-performance system, it appears DOD is comfortable pursuing a freeze on employees’ pay.

“It is outrageous that the Pentagon can throw civil servants into a system they did not ask to be a part of, then come back and penalize them for succeeding in their work,” Perkinson commented. “DOD must recognize that those who are impacted the most are the top performers, and that pursuing a policy which essentially penalizes them for their hard work sends the wrong message to the entire workforce.”

The Pentagon has not released a formal statement explaining all the details of what a conversion out of NSPS will look like and P.L. 111-84 allows DOD another four and a half months to develop an alternative pay system. In the meantime, FMA is continuing to emphasize the aggressive position the Association will take to correct this inequity.

“FMA is committed to working with Members of Congress and DOD to ensure all civil servants receive the compensation that have rightfully earned through the transition out of NSPS,” said Perkinson. “Our fight to prevent the Pentagon from freezing the pay of these hard working employees is a fight to establish that performance matters in government.”

To view a copy of Perkinson’s letter, please visit the Members Only section of FMA’s Web site: http://fedmanagers.org/membersvc.

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WHAT’S HAPPENING ON CAPITOL HILL?

FEDS WILL RECEIVE SMALL PAY INCREASE, LOCALITY IN 2010

Members of Congress backed President Obama’s call for a 2010 civil service pay increase of two percent, but the two bodies diverged in regards to the locality pay federal workers should receive. In a letter to House Speaker Nancy Pelosi (D-Cali.) and Vice President Joe Biden, President Obama explained his intentions to hold locality pay rates at 2009 levels for members of the civilian federal workforce in 2010, marking the first time a president has proposed a freeze on locality pay since the payments were first instituted in 1994. Members of Congress rebuffed the President’s proposal during consideration of the fiscal year 2010 Omnibus Appropriations Bill (H.R. 3288) by supporting a 1.5 percent average across the board pay increase and a .5 percent locality adjustment.

House Majority Leader Steny Hoyer (D-Md.), a chief proponent of the annual locality pay adjustment, praised the work of appropriators on the conference committee.

"I am pleased the final bill will provide for locality pay to reflect variable costs for federal employees working in various job markets," said Hoyer. "This provision is critical to bringing federal pay in line with the private sector and enabling the federal government to compete for high quality talent."

Emphasizing his disappointment the President failed to support pay parity between members of the military and the civil service in his 2010 budget, Congressman Hoyer said he and other Members of Congress were confident pay parity would be achieved in 2011.

"While I believe that this year's adjustment is reasonable in light of an economic downturn where millions of Americans have lost their jobs, I am disappointed that parity was not achieved," commented Hoyer. "Like their military counterparts, civilian federal employees have made significant contributions to help our country respond to the challenges we face both domestically and abroad, and I believe their pay adjustments ought to reflect that.  I have spoken to the Administration about the importance of parity and have been assured it will be included in next year's budget."

To view a copy of the President’s letter, please visit: www.whitehouse.gov. To view a copy of the omnibus bill, please visit: http://thomas.loc.gov.

SENATE MOVING FORWARD WITH CAUTION ON HEALTH CARE REFORM

As the Senate continues to grapple with its version of the health care reform legislation (H.R. 3590), conducting much of its work behind closed doors in a shroud of secrecy, several provisions which could potentially affect federal employees continue to garner attention. While the Senate attempts to wrap up work on the bill, there are a few measures under debate that could affect members of the civil service.

In similar fashion to the House health care reform bill (H.R. 3962), the Senate proposal currently includes a provision which would cap the amount of pre-tax dollars federal employees could deposit into a flexible spending account (FSA) at $2,500. Contributions to FSAs, which civil servants use to cover many out-of-pocket medical expenses, are currently capped at $5,000. Senator Richard Burr (R-N.C.) offered an amendment to this measure which would maintain the current $5,000 cap for members of the civil service, but there is no guarantee the Senate will consider the Senator’s proposal.

As previously mention in the Washington Report, the House and Senate bills diverge in several areas, notably in the manner each chamber is pursuing to fund many of the reforms. The Senate version continues to push an excise tax, which would impact health care plans costing $8,500 for single coverage and $23,000 for family, to fund many of the legislation’s reforms. These limits would take affect in 2013. The House bill would place a surtax on individuals earning over $500,000 a year or couples with a combined income exceeding $1 million in lieu of an excise tax. Several amendments under consideration in the Senate would restructure the current excise tax proposal, potentially raising the tax thresholds to $9,500 and $25,000 for single and family plans respectively, or would eliminate the tax altogether. Thresholds of this manner could affect Federal Employees Health Benefits Program (FEHBP) plans in the future.

Senators have also engaged in debate over a proposal that would create a national health insurance plan administered by the Office of Personnel Management (OPM). The plan, which would seek to mirror the FEHBP in several respects, has critics questioning OPM’s ability to fill this role and if this may impact the FEHBP in the future. While few details are available on how OPM could manage such an ambitious task, Members of Congress and federal employee groups alike challenge whether the proposal would detract from the agency’s core mission of and dilute its attention on current issues. It is unclear at this time how serious the Senate is in pursuing this option.

As the debate over health care reform continues to advance, please check the Federal Managers Association Web site for more updates: www.fedmanagers.org.

AGENCIES AWAIT PRESIDENT’S SIGNATURE ON OMNIBUS MEASURE

The House and Senate wrapped up their work on the $446.8 billion Fiscal Year 2010 Omnibus Appropriations Bill (H.R. 3288) this past weekend. The bill, which provides funding for six of the seven remaining 2010 appropriations bill, includes a two percent pay raise for members of the civil service.

The conference report includes the $64.4 billion Commerce-Justice-Science bill (H.R. 2847), the $67.9 billion Transportation-HUD bill (H.R. 3288), the $24.2 billion Financial Services bill (H.R. 3170), the $163.6 billion Labor/HHS/Education bill (H.R. 3293), the $78 billion Military Construction-VA bill (H.R. 3082) and the $48.7 billion State-Foreign Operations spending bill (H.R. 3081).

If the President signs the bill early this week as expected, only the Defense appropriations bill (H.R. 3326) will require further work moving forward. Federal agencies have relied on two continuing resolutions which fund agencies at FY09 levels and the current continuing resolution is set to expire on December 18.

In a letter to leaders on the House and Senate Appropriations Committees, Federal Managers Association (FMA) National President Darryl Perkinson explained the devastating effect continuing resolutions have on the ability of agencies to achieve their missions and deliver the level of service expected by the American public.

“Continuing resolutions (CR) force managers and supervisors to focus more on short-term operations and less on their core missions, impeding efficiency and ultimately costing the government, and by extension American taxpayers, more money in the long run,” Perkinson wrote. “Additionally, the continued reliance on CRs inhibits agencies’ abilities to anticipate funding levels and allocate resources in an appropriate fashion to boost productivity and the delivery of services. Providing agencies with timely and adequate budgets is the only course of action to avoid such challenges.”

For more information on the FY10 Omnibus Appropriations Bill, please visit: http://thomas.loc.gov.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

OPM FINALIZES MANAGERIAL TRAINING RULES

The Office of Personnel Management (OPM) issued a final rule implementing several requirements established under the Federal Workforce Flexibility Act of 2004 (P.L. 108-411) adjusting the law in respect to the training and development of federal employees, supervisors, managers and executives. The modifications to P.L. 108-411 will strengthen several provisions regarding training through enhanced collaboration requirements between OPM and agencies in the development and reporting of training plans and procedures.

Under the final rule, agencies must conduct routine evaluations of training programs in place to determine their success in achieving strategic goals and performance plans. Tied to this is a requirement for agencies to modify existing plans and programs to align with the evaluations’ findings. The final rule further instructs agencies to consult OPM during the construction of succession programs designed to develop future agency managers and supervisors.

OPM’s final rule also includes language requiring agencies to create programs designed to educate managers on actions, options and strategies available to them when addressing employees exhibiting poor performance. With OPM’s assistance, agencies must develop methods to enhance managerial training on employee mentoring, improving employee productivity and performance and conducting employee performance appraisals.

The final rule acknowledged the financial and human resources costs involved in the rule’s enactment, but OPM stated it will work with agencies to reduce the policy’s impact on agency budgets as much as possible while maintaining overall compliance with the law. The regulations outlined became effective on December 10, 2009.

To view a copy of OPM’s final rule, please visit: http://edocket.access.gpo.gov/2009/E9-29480.htm.

NEW OPEN GOVERNMENT DIRECTIVE STRIVES FOR TRANSPARENCY

The Obama administration rolled out an aggressive Directive on December 8 calling on executive departments and agencies to implement a series of procedures to advance three principles Office of Management and Budget (OMB) Director Peter Orszag calls the cornerstone of an open government: transparency, participation, and collaboration. The President’s January 2009 Memorandum on Transparency and Open Government, issued on his first day in office, spawned the Directive, which will provide the public with unprecedented access to government information and the ability to provide significantly more feedback on agency operations.

“For too long, the American people have experienced a culture of secrecy in Washington, where information is locked up, taxpayer dollars disappear without a trace, and lobbyists wield undue influence,” the White House said in announcing the Directive. “For Americans, business as usual in Washington has reinforced the belief that the government benefits the special interests and the well connected at the expense of the American people. But President Obama committed to change the way Washington works. And he has begun to do just that.” 

Establishing specific deadlines for concrete actions agencies will take to promote openness, the Directive frames the effort around four primary initiatives reinforcing the position that when it comes to the Freedom of Information Act, the federal government supports transparency over reticence. Agencies will be required to create an Open Government Webpage within 60 days to expand online access to information on their activities as part of the first initiative to increase accountability and participation with the public. Agencies must also ensure information disseminated to the public aligns with OMB guidance on quality, and the Directive establishes several steps with corresponding deadlines to confirm agencies are adhering to the framework.

Additionally, the Directive calls on senior leaders to promote a culture of open government within their respective agencies through enhanced internal collaboration and public participation. Agencies will have 120 days to publish a plan outlining efforts in this regard as a component of their Open Government Webpage. The last of the four initiatives focuses on adopting new technologies to advance efficient and effective communication between the government and the American public. Within 120 days, the Administrator of the Office of Information and Regulatory Affairs, the Federal Chief Information Officer and the Federal Chief Technology Officer will conduct a review of current OMB open government policies to determine how to incorporate new technologies to streamline public disclosure of information.

“The President has been clear from day one in office: the federal government must break down the barriers between it and the people it’s supposed to serve,” said Orszag. “Today’s announcement will help to make government more open, transparent, and accountable to bridge the gap between the American people and their government.”

For more information on the Directive and the Administration’s Open Government Initiative, please visit: www.whitehouse.gov/open.

ADMINISTRATION TARGETS FRAUDULENT RECOVERY ACT RECIPIENTS

The Administration is gearing up to take American Recovery and Reinvestment Act (P.L. 111-5) recipients to task if they failed to submit the required reports documenting their use of federal funds, according to a November 30 memorandum delivered to executive agency and department heads. Recipients deemed “non-compliant” under the reporting requirements will be subject to federal action, which may include termination of current or future federal funding.

“In order to provide the public with the transparency and accountability envisioned by the Recovery Act, we must take steps to ensure all recipients understand their reporting obligations and the consequences of non-compliance,” the memorandum states.

As of the memorandum’s release, agencies must begin to compile a list of Recovery Act recipients who neglected to file a report on spending in October as required by law. Agencies had until December 4, 2009 to provide the list to the Office of Federal Financial Management, and the Office of Management and Budget (OMB) will subsequently provide guidance on additional steps agencies must take following submission of the record. Agencies must also formulate plans to communicate with non-compliant recipients while assessing the severity of the refusal to report on the use of funds to determine what actions are justified moving forward.

In the case of recipients who were unable to provide the reports due to technical impediments, agencies are instructed to assist in efforts to promote future compliance without penalty. If the non-compliance is determined to be fraudulent, the case will be sent to agency officials in charge of criminal investigations.

“Agency efforts have been essential to the level of success seen in the initial round of Recovery Act recipient reporting,” OMB Director Peter Orszag concluded in the memo. “Through the efforts listed above, Federal department and agencies can help recipients meet their legal duty and further President Obama’s and Congress’ commitment to unprecedented levels of transparency in the use of the public’s funds.”

To view a copy of the memorandum, please visit: http://www.whitehouse.gov/omb/assets/memoranda_2010/m10-05.pdf.

PRESIDENT ANNOUNCES SAVE AWARD WINNER

Nancy Fichtner, an employee with the Department of Veterans Affairs (VA), asked the President why VA hospitals threw away massive amounts of medicine, such as ointments, eye drops and inhalers, when patients were discharged, suggesting instead that they be allowed to take these medicines home. Her proposal, one of over 38,000 submitted as part of the President’s Securing Americans Value and Efficiency (SAVE) Award, an Administration initiative to solicit strategies to improve the government’s efficiency and effectiveness from those on the front lines, was chosen as the top cost-cutting idea and will be included in the President’s fiscal year 2011 budget.

Administration officials chose Fichtner’s idea along with three others for final consideration by the general public in a four day vote hosted on the White House’s Web site. The three other finalists included: Julie Fosbender, a Department of Agriculture employee, who suggested streamlining the collection and deposit of National Forests visitors’ fees; Christie Dickson from the Social Security Administration, who proposed allowing people to schedule Social Security appointments online to save time and money; and, Huston Prescott, a Department of Housing and Urban Development worker from Alaska, who suggested eliminating redundant inspections of subsidized housing which costs inspectors’ time and taxpayers’ money.

Fichtner will present her idea to the President in person at the White House on December 21. All submissions for the award were judged on several criteria, ranging from total cost savings produced to implementation feasibility. Federal employees are still encouraged to submit ideas for future consideration on the Administration’s Save Award Web site.

“I want to congratulate Nancy on this accomplishment and also salute the thousands of Federal employees who submitted their ideas as well,” said Office of Management and Budget Director Peter Orszag. “Their initiative proves that often the best ideas come not from management, but from those on the frontlines. Over the coming months, we hope to implement many of these excellent ideas as we seek to instill a new sense of responsibility for every tax dollar.”

For more information on the Save Award winner and finalists, or to submit your own idea to improve federal operations, please visit: www.saveaward.gov.

NOMINATIONS OPEN FOR 2010 SERVICE TO AMERICA MEDALS

Each fall, civil servants who have made exceptional contributions to the nation through their government work are honored at the Service to America Medals gala celebration in Washington, D.C. The Federal Managers Association (FMA) urges anyone who knows an outstanding colleague with an inspiring story in the federal workforce to submit a nomination for the award by the January 29 deadline.

The awards are separated into seven categories: Call to Service; Career Achievement; Citizen Services; Homeland Security; Justice and Law Enforcement; National Security and International Affairs; and, Science and Environment. A winner from each category is selected, along with a Federal Employee of the Year, and honored as a representation of the vital role played by members of the civil service each day.

“America loves heroes, and our nation is fortunate to have an abundance of them,” according to a statement from the Partnership for Public Service (Partnership), which presents the annual event. “But most of these heroes never appear on television or in the paper. They simply go about their lives and work with an uncommon selflessness and without fanfare. Of all the unsung heroes who are making our country stronger, some of the most remarkable are the ones who work for it—America’s federal employees.”

Beyond the public recognition of their efforts, Service to America Medals recipients receive cash awards ranging from $3,000 to $10,000. Nominees for each category should display a strong commitment to public service and demonstrate significant accomplishments within their areas of work, according to the Partnership, which oversees the selection process. Finalists in each category will be announced in May.

“I strongly encourage all FMA members who know of an individual who meets the award’s criteria to submit his or her name for nomination,” FMA National President Darryl Perkinson stated. “At the same time, we should recognize that the medals are a tribute to all of the work conducted by members of the civil service who have devoted their lives to serving this nation. The remarkable men and women awarded for their achievements epitomize our efforts everyday in the federal workforce.”

To submit a nomination or for more information on the awards, please visit: www.servicetoamericamedals.org.

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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, 2009. 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.

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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

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