Federal Managers Association

It is likely the full House Agriculture Committee will take up the Farm Bill in the coming days. To send a letter to your Member of Congress on this issue or to view a copy of the letter, please visit FMA online at: www.fedmanagers.org.

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WHAT’S NEW ON CAPITOL HILL?

CIVILIAN PAY RAISE PASSES SENATE COMMITTEE, AT PARITY WITH MILITARY

The Senate Appropriations Committee approved H.R. 2829, the fiscal year 2008 Financial Services Appropriations bill which provides civilian federal employees with a 3.5 percent pay raise in 2008. The move Thursday further advances the fight for pay parity, as the House previously authorized the same pay increase for members of the military.

The Bush administration continues to oppose the pay increase in preference of a 3 percent raise, as the President has long considered the extra 0.5 percent unnecessary. The bill also provides increased funding for the Office of Personnel Management's (OPM) retirement systems modernization project to the amount of $12.5 million, $2.5 million under the President's request.

"As I have said time and time again, we at the Federal Managers Association (FMA) feel all of those who serve the public as employees of the federal government deserve to be rewarded equally for their efforts," FMA National President Darryl Perkinson said in response to hearing of the news. "We must continue to fight to ensure that this bill continues to advance in Congress until it is signed into law."

A copy of the bill, which now awaits a vote on the Senate floor, may be found at http://thomas.loc.gov.

SSA RECIEVES ANOTHER FUNDING BLOW FROM CONGRESS

On July 11, the House Appropriations Committee passed the fiscal year 2008 Labor/HHS/Education and Related Agencies Funding bill (S. 1710), which included just under $9.7 billion for the Social Security Administration (SSA) administrative expenses. While this is an increase over the President’s budget request, it falls short of the mark needed for SSA to serve its customers efficiently.

Currently, in the Office of Disability Adjudication and Review (ODAR), there exists a backlog of over 745,110 requests for a hearing, an increase of 433,152 requests since the start of fiscal year 2000. With the meager increase over fiscal year 2007 funding levels, SSA will only be able to replace roughly 1,000 of the 4,000 employees lost in the last three years.

In his FY08 budget request, the President proposed $9.597 billion for SSA Limitation on Administrative Expenses. Before the end of her six year term, Commissioner Barnhart developed a Service Delivery Budget through 2012 to provide a framework for making decisions on needed improvements in service delivery and fiscal stewardship, and the requisite staffing to accomplish both. The Commissioner proposed $10.44 billion for administrative expenses for FY08.

Previously, Congress approved $10.1 billion in SSA salaries and expenses for fiscal year 2008 in the Budget Resolution (S.Con.Res. 21); an amount which would allow the agency to tackle the growing disability claims backlog. However, the House Appropriations Committeeapproved only $100 million in funding for SSA administrative expenses over the President’s request and in June, the Senate Appropriations Committee went slightly further and allocated $125 million above the budget request.

“The funding provided by Congress will slow the rapid growth of the backlog; however, it will not allow the agency to begin work on wrestling with this problem,” commented FMA National President Darryl Perkinson. “The solution to the backlog problem is simple – more staff will allow SSA to deliver its services to the American people in the best possible manner. This cannot be done without adequate funding from Congress.”

COLLEGE COST REDUCTION ACT BOOSTS RECRUITING EFFORTS

On July 11, the House passed the College Cost Reduction Act, H.R. 2669, legislation touted by many representatives as a critical component in the fight to attract more college graduates to jobs in public service. Graduates often pass up jobs in the public sector for higher paying opportunities elsewhere, but H.R. 2669 seeks to build on loan forgiveness programs implemented in the past to cover the needs of a wider spectrum of graduates with debt.

The College Cost Reduction Act would provide $5,000 in loan forgiveness for graduates who pursue employment in public service. Full-time government or non-profit employees who have served for ten or more years, and who have made monthly payments on their loans, will have their outstanding debt forgiven. The Act builds on legislation passed in 1993 which allows students to repay their loans based on their level of income. Under the 1993 legislation, the government would then forgive any remaining debt after a 25 year period.

A day before H.R. 2669 passed the House, the Bush Administration threatened to veto the bill in a policy statement addressing concerns that such a program would end up costing taxpayers too much in the long run. The White House would like more funding for the Pell Grant Program, which helps students out financially while still in school. “H.R. 2669 provides multi-year, mandatory funding to several Federal programs such as ‘Cooperative Education Rewards,’ ‘Incentives and Rewards for Low Tuition,’ and ‘ federal Perkins Loans’ that poorly target aid to students, serve narrow constituencies, and raise constitutional concerns,” the policy statement reports.

At the committee mark-up on June 12, Chairman of the House Education and Labor CommitteeGeorge Wolf (D-Cali.), a proponent of the bill, called the legislation “the single largest investment in college financial aid since the GI Bill,” and that the cost to taxpayers will be completely offset by cuts to unnecessary subsidies currently offered.

A full copy of H.R. 2669 may be found at http://thomas.loc.gov.

NUMEROUS VACANCIES AT DHS A CAUSE FOR CONCERN

According to a report recently released by the House Committee on Homeland Security, almost a quarter of senior leadership positions at the Department of Homeland Security (DHS) are vacant. These vacancies are mostly political appointees that do not require Senate confirmation.

As of May 1, 2007 there were 575 “executive resource” positions at DHS, of which 138 were vacant. “Executive resource” refers to positions in the highest salary bands (GS-15 and up), including political appointments, of the federal government. These vacancies can be found throughout the DHS in a number of critical areas and administrative functions.

DHS contends that the vacancy rate is artificially high because of 73 senior executive service positions that were created on March 1, 2007. Despite this, the report prepared by the Committee Majority Staff dismisses this notion and points to statistics that show over 51 percent of vacant positions are vacant with no explanation, while 44 percent are under active recruitment.  

Committee on Homeland Security Chairman Bennie Thompson (D-Miss.) commented that this is, “Not just a national security concern, DHS’s lack of leadership has triggered record-low employee morale, an immeasurable disservice to the hundreds of thousands of men and woman working on the front lines to protect our country.”

SUBCOMMITTEE EXAMINES SUPPLY CHAIN MANAGEMENT AT DOD

The Senate Homeland Security and Governmental Affairs Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia recently held a hearing to examine supply chain management at the Department of Defense (DOD). Supply chain management has been on the Government Accountability Office (GAO) High Risk List since 1990.

DOD logistics and the supply chain is a complex business with over one million uniformed, civilian, and contract employees. The DOD supply chain accounted for $162 billion in spending in fiscal year 2006. Because the military is deployed across the world and in most instances in need of support on short notice, DOD relies heavily on industry partners and civilian contractors to ensure our forces have the supplies they need.

Unfortunately, like with many other large, complex programs, supply chain management faces serious challenges. Examples of some areas that need improvement were highlighted by Subcommittee Chairman Daniel Akaka (D-Haw.) throughout the hearing. He noted that DOD cannot account for more than 50,000 shipping containers in theatre and many of these do not belong to the government. Instead they are owned by private companies and when these containers are not returned the government is charged late fees and in many cases is forced to buy them out. DOD has spent over $203 million on around 25,000 containers already, not including the 50,000 containers that are currently missing.

“Supply chain management is critical to our security. It affects the safety of men and women in uniform who are currently engaged in two simultaneous conflicts in Iraq and Afghanistan. Even after these conflicts end, effective supply chain management will remain vital. We need to look to the future when we must stock and store supplies for the next contingency, be it missions abroad or assisting others right here at home,” said Sen. Akaka.

MSPB AND OSC PRACTICES CALLED INTO QUESTION

On Thursday, July 12, the House Oversight and Government Reform Subcommittee on the Federal Workforce, Postal Service, and the District of Columbia held a hearing to discuss the proper handling of employees that bring issues of agency misconduct including fraud and mismanagement of funds to light, along with mistreatment based upon anything other than work performance. Entitled “Ensuring a Merit-Based Employment System: An Examination of the Merit Systems Protection Board (MSPB) and the Office of Special Counsel (OSC),” the hearing provided Chairman Danny Davis (D-Ill.) with an opportunity to express many of his concerns with the treatment of whistleblowers by their superiors.

“Those who manage the government must have the will and determination to ensure, in the case of the OSC and MSPB, that federal employees who disclose information of government waste, fraud, and abuse are not retaliated against; that government employees comply with legal restrictions on political activity; and that employee appeal cases are adjudicated in a fair and timely fashion,” Davis said in his opening statement. “Unfortunately, there is some indication that the will and determination is not there.”

Panel members included: the Honorable Scott J. Bloch, Special Counsel, OSC; the Honorable Neil McPhie, Chairman, MSPB; Mr. Morton Rosenberg, Senior Analyst, Congressional Research Service; Mr. Adam Miles, Legal Representative, Government Accountability Project; Ms. Natresha Dawson, former OSC employee and whistleblower; Ms. Lara Schwartz, Chief Legislative Counsel, Human Rights Campaign; and, Ms. Beth Daley, Director of Investigations, the Project on Government Oversight.

A wide spectrum of issues was covered, centered on unfair treatment of government employees based on reasons other than performance. Perhaps the most captivating testimony came from Ms. Dawson, who offered personal accounts of her work at OSC, work she called “the most disillusioning experience” of her professional life.

“[The OSC’s] stated mission and public relations identity is defending the merit system and whistleblowers. But in practice, it has ignored whistleblowers, and internally violated the same merit system principles it is charged with enforcing in the rest of the civil service system,” Ms. Dawson told the subcommittee.

Chairman Davis is a cosponsor of H.R. 986, the Whistleblower Protection Act of 2007. For more information on the hearing, please visit: http://oversight.house.gov/.

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WHAT’S HAPPENING IN THE EXECUTIVE BRANCH?

GAO ISSUES REPORT ON FEDERAL RETIREMENT

The Government Accountability Office (GAO) recently released a report entitled “Retirement Decisions: Federal Policies Offer Mixed Signals about When to Retire,” highlighting how Social Security, Medicare, and pension laws all influence federal employees’ decisions to retire. The report is designed to help Congress decide whether law changes encouraging federal employees to retire at a later age would be beneficial. GAO worked in conjunction with the Departments of Health and Human Services (HHS), Labor, and Treasury and the Social Security Administration (SSA) to complete this study and publish recommendations.

With the beginning of the baby boomer generation reaching retirement age, many federal agencies are struggling with plans on how to best cope with the inevitable high turnover rates. Recommendations within the GAO report may help ease such a massive government exodus in the future.

“In light of the range of challenges facing the country in the 21st century, Congress may wish to consider changes to laws, programs and policies that support retirement security, including retirement ages, in order to provide a set of signals that work in tandem to encourage work at older ages,” the report states.

While reduced Social Security benefits available at the age of 62 and a tax policy that sets loose parameters for when employees can begin drawing retirement funds from pensions without incurring tax penalties encourage workers to retire early, incremental increases in the full retirement age, from 65 to 67 for example, encourage those able to work to continue in order to receive the most money. The underlying goal of this report is not simply to encourage all laws that lead to a higher mean retirement age at any cost; rather, the report promotes changes that allow employees to recognize when the right time to retire is and to provide employees with incentives to continue serving the public good.

A full copy of the report may be found at: www.gao.gov.

EEOC ISSUES ANNUAL REPORT TO CONGRESS

The Equal Employment Opportunity Commission (EEOC) recently released its 2006 annual report to Congress. The findings showed that federal employees are filing fewer equal opportunity claims and that the average time to process a claim dropped dramatically.

According to EEOC’s 2006 annual report, a claim took an average of 236 days to investigate and 411 days to completely process in 2005. In 2006 these numbers decreased significantly, taking only 186 days to complete an investigation and 367 days to fully process a claim. The report also showed that in 2006, federal employees and applicants filed 16,723 complaints alleging employment discrimination which is down seven percent from just over 18,000 complaints in 2005.

“While federal agencies continue to make noticeable progress in complaint processing, much more needs to be done to truly have an efficient and expeditious system,” EEOC Chair Naomi Earp said. “We are working closely with our sister agencies to effectuate continued improvements and promote best practices to ensure that the federal government is a model employer.”

Last year, FMA testified before Congress on the options available to federal employees when filing a complaint and the need for the system to become more streamlined. At that time, FMA stated, “ It is clear to us that the entire appeals process offers too many options to employees looking to file frivolous claims against managers trying to address poor conduct, under performance or other problems. The EEOC process must be streamlined and more stringent standards must be placed on claims filed by employees. We also believe that managers’ rights need to be taken into consideration due to the excessive number of frivolous claims determined each year by the EEOC decisions.”

Upon hearing of the 2006 report, FMA National President Darryl Perkinson commented, “It appears that not only are employees filing less frivolous claims, the EEOC is also taking a faster approach to deciding claims. I want to thank the EEOC for their efforts in this arena.”

OPM RECLASSIFIES RETIREMENT BENEFITS FOR SOME FEDS

In a recent Benefits Administration Letter, the Office of Personnel Management (OPM) announced that it was making changes to the way it credits service for employees on workers compensation who work part time but have a full time appointment. Now employees, who were given a full-time appointment, but as a result of being on workers ’ compensation, worked only part of the day and used leave without pay for part of the day, will be credited as full-time.

This change came after a Merit Systems Protection Board (MSPB) ruling in the case of Hatch v. OPM. The Board ruled that the annuitant should have been treated as a full-time employee for retirement purposes for the period of time he was on workers’ compensation and only working part time. However, if an employee is not under a full-time appointment, the usual part-time rules apply. Also, the MSPB decision does not apply to reemployed annuitants.

OPM claims that it is not possible for it to identify other possible cases similar to Hatch’s. As a result they have asked all agencies to review their payroll files to determine if there are any other individuals with similar circumstances to Mr. Hatch.

For a copy of the Benefits Administration Letter please visit: www.opm.org. For information on the MSPB case, please visit: www.mspb.gov.

SENATE CONFIRMS WEIZMANN AS OPM DEPUTY

On July 9, Office of Personnel Management (OPM) Director Linda Springer announced that the Senate confirmed Howard Weizmann as OPM deputy director. Weizmann was nominated by President Bush after Dan Blair left the position to become chairman of the U.S. Postal Regulatory Commission.

"Howard Weizmann brings decades of experience and exceptional service in the human resources field to OPM, and we know he will be a valuable asset to our team," Springer said in an OPM press release after Weizmann’s confirmation. Springer went on to say Weizmann will lead the OPM in efforts to tackle large initiatives, including modernization of retirement systems, to “create a more efficient Federal workforce and enhance peace-of-mind among retirees and annuitants."

Prior to his confirmation as OPM deputy director, Weizmann served as president of the Private Sector Council, a component of the Partnership for Public Service, which seeks to improve government agency performance via the introduction of business practices. Weizmann also served as senior vice president of European Business Operations and Human Resources for Digex, Inc. and as an executive with Watson Wyatt Worldwide, a management consulting firm.

“I look forward to working with Howie in his new capacity as Deputy Director and I wish him all the best as he undertakes this new endeavor,” commented FMA National President Darryl Perkinson.

More information on Weizmann’s confirmation can be found at: www.opm.gov.

OMB IDENTIFIES MORE THAN 21,000 UNNEEDED FEDERAL PROPERTIES

The Office of Management and Budget (OMB) released a report that identified more than 21,000 properties across the country that are unneeded and could be disposed of to reduce operating costs and more effectively manage the federal government’s property assets. The value of these properties is estimated at $17.5 billion. The report also identified more than 500 unneeded properties that are currently up for sale with an estimated value of just under $1 billion.

As of 2006, the federal government maintained more than 1.2 million properties with a value of more than $1.5 trillion. Under Executive Order 13327, Federal Real Property Asset Management, federal agencies have disposed of more than $4.5 billion in unneeded property since 2004, with a goal of disposing of $9 billion by 2009.

“Agencies have made great progress in more effectively managing our real property assets, but today’s report shows the volume of unnecessary properties is such that agencies need additional tools to more effectively manage their real property,” said Clay Johnson, Deputy Director for Management at OMB.

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GET INVOLVED AT THESE EVENTS!

NEW INFORMATION ON FMA’S 16TH MID-YEAR CONFERENCE!

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 can register via FMA’s Web site at www.fedmanagers.org. Fees for the Conference are as follows: Regular: $365, (until August 3, 2007), and Late: $400 (until August 17, 2007). The training day of the conference has been finalized and posted on FMA’s Web site at: http://www.fedmanagers.org/public/events.cfm.

Additionally, FMAChapter 307, host of this year’s conference, has dedicated its Web site as your one-stop shop for Mid-Year related events. Please visit http://home.earthlink.net/~fmachapter307/ f or more information on after hour events, transportation to and from the airport and what to do in San Francisco!

REGISTRATION STILL 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.

SPECIAL SUMMER RATES AVAILABLE FROM SNOW-CAP

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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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