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Federal Managers Association
Washington Report
September 17, 2007
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FMA WORKING FOR YOU! FMA PRESENTS AT TELEWORK EXCHANGE TOWN HALL MEETING On September 12, 2007, the Federal Managers Association (FMA) Chapter 216 Member Michael O’Leary represented FMA on a panel of experts entitled Envisioning the Government Workforce of Tomorrow at the 2007 Telework Exchange Town Hall Meeting. Using his background as a Program Manager in Operations Support at the Bureau of Engraving and Printing in Washington, D.C., O’Leary spoke on the future of the government’s workforce and how to bring about cultural change in agencies so that managers may embrace alternative work approaches and environments. He also provided the group with a managerial perspective on utilizing telework. O’Leary began his presentation by stating, “As managers and supervisors in the federal government, we at FMA are committed to being responsible stewards of taxpayer dollars. Telework is a tool that will revolutionize federal agency operations and is a vital resource in meeting the expectations of both agencies and employees.” The Telework Exchange’s 2nd Annual Town Hall Meeting focused on government telework and next steps to establishing telework as a mainstream standard operating procedure across government agencies. The event brought together a diverse set of stakeholders, including government agency telework proponents, government telework managers, government teleworkers, industry supporters, and affiliated organizations. O’Leary also spoke on the steps the Bureau of Engraving and Printing took to implement a telework program. He concluded his presentation by stating, “ All of us present here today have an opportunity to promote telework with benefits that far outweigh the costs. This venue gives the federal manager insight and ability to initiate the cultural changes, necessary for successful implementation inside federal agencies. The old paradigm of managers can not stand in the way of the evolution and expansion of telework.” For more information about the meeting please visit: www.teleworkexchange.com/townhallmeeting. REPRESENTATIVE KINGSTON SPEAKS AT LOCAL CHAPTER LUNCHEON The Federal Managers Association Chapter 258, Trident Refit Facility (TRF FMA), Kings Bay, Georgia, hosted a luncheon at the Laurel Island Links on August 22nd with Congressman Jack Kingston (R-Ga.) from the 1st District of Georgia and Camden County representative. In attendance were dozens of chapter members and Facility Commanding Officer Captain John Stewart. Rep. Kingston spoke for about 40 minutes about a variety of subjects ranging from the global war on terror to the Department of Defense’s National Security Personnel System. Following his speech, he took questions from the audience and answered many that covered both national and local concerns. Following the discussion, TRF FMA President Bryan Fowler presented Kingston with a Trident submarine plaque with an aerial picture of the facility. Kingston was very appreciative and commented he plans to proudly display the plaque in his D.C. office. Interested in inviting your Member of Congress to a chapter event? Please contact FMA’s National Office at (703) 683-8700 or info@fedmanagers.org for more information.
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WHAT’S NEW ON CAPITOL HILL? DEFENSE AND MILITARY CONSTRUCTION APPROPS SEE PROGRESS The Senate Appropriations Committee approved on September 12, 2007, the FY08 Defense Appropriations legislation (H.R. 3222). The spending bill provides $459.6 billion to the Department of Defense, $3.5 billion less than the president’s request. Senate Appropriations Defense Subcommittee Chairman Daniel Inouye (D-Haw.) said of the bill, “This legislation serves our men and women in uniform by ensuring that they are protected in the best possible way.” The Committee shifted funds away from weapons programs towards health care, pay raises and equipment. The legislation provides a 3.5% increase in basic pay for all service members and civilian personnel, which exceeds the President’s request by 0.5%. Military personnel will receive $105.5 billion under the bill and health care programs will see $23.5 billion. President Bush has threatened to veto the House version of the bill, which contained an amendment to cut off funds for DOD’s National Security Personnel System (NSPS). Unlike the Senate version, the House version of the bill would prohibit the use of funds to modify federal law that is relevant to personnel and labor management relations. The Senate bill did not attach any language to the Defense Appropriations bill that will modify the NSPS system but they are studying the issue. It is likely that the legislation will head to the Senate floor for consideration in the coming weeks. Additionally, the Senate overwhelming passed the fiscal year 2008 Veterans Affairs and Military Construction Appropriations bill (H.R. 2642)on September 6, 2007, by a vote of 92-1. The bill budgets $109.2 billion for fiscal year 2008 for military construction, housing, base closures, and veterans’ healthcare and benefits. The Senate exceeded the President’s request by $4.1 billion. Included in the bill was $4.03 billion for military construction, exceeding the budget by $111 million. The Base Realignment and Closure (BRAC) initiative received $320.6 million, $100 million above the President’s budget. The Senate Appropriations Committee cited environmental clean-up cost associated with base closures as the reason for the budget increase. The Department of Veterans’ Affairs (VA) is slated to receive $87.5 billion under the bill. More than Sixty-one million people or twenty percent of the population are recipients or a potential beneficiary of veterans’ benefits from the federal government. Veterans’ benefits will receive $44.64 billion which matched the amount budgeted by the Bush administration. The VA compensation and pension fund will receive $41.23 billion which is the same as the amount requested by the administration. The VA also received a windfall of $4.09 billion for medical facility maintenance, surpassing the requested $3.59 billion by the Executive Branch. For more information on these bills, please visit http://thomas.loc.gov/. OTHER APPROPRIATIONS BILLS MAKE THEIR WAY THROUGH CONGRESS The Senate continues to work on passing appropriations legislation before the September 30, 2007 deadline. The Senate passed H.R.2764, the FY08 Department of State, Foreign Operations, and related programs bill on September 6, 2007. The legislation appropriates $34.4 billion toward the Department of State and related agencies that include the Broadcasting Board of Governors. The Senate ensured that the State Department continues to receive financial support by funding the agency to the tune of $10.68 billion. The Senate funded international peacekeeping activities to the sum of $273.2 million. Such liberality is also directed at military assistance with the continued support of the Foreign Military Financing Program will provide $4.579 billion. The United States Agency for International Development (USAID) was granted $1.45 billion to continue to offer assistance worldwide. The Senate decreased Bush’s budget request for the Millennium Challenge Corp by $2.8 billion to $1.2 billion. The Senate’s munificence continued with the appropriation of $6.531 billion to the Global Health Program (GHP), exceeding the budgeted $1.56 billion requested by Bush. GHP funds such medical treatment and care programs as HIV/AIDS, avian influenza, TB, malaria, measles, meningitis and polio. In addition, the Senate also passed the FY08 Transportation-Housing appropriations bill (H.R. 3074) on September 12, 2007 by a vote of 88-7. The $104.6 billion package exceeds the White House’s budget request by $4 billion. The Department of Transportation (DOT) will receive $65.7 billion. Under the purview of DOT is the Federal Aviation Administration (FAA). The FAA will receive $14.94 billion of the funds; $8.761 will be utilized in the improvement of the air traffic control and navigation systems. $2.52 billion will be applied towards major capital investments such as the modernization of America’s air traffic control system. The legislation also provides $3.51 billion in grants to improve safety, security and modernizing runways at American airports. The Department of Housing and Urban Development (HUD) was allocated a total $38.74 billion, $3.15 billion above the budget request. A majority of the funds will be used to cover public and Indian housing accounts. The amount for this enterprise is $30.06 billion, $1.12 billion above the Administration’s request. Another $5.81 billion appropriated toward moderate housing rental assistance. Under HUD, Community Planning and Development will receive $8.11 billion, $1.16 billion above the budget request submitted by the Executive branch. The Community Development Fund (CDBG) was allocated $4.1 billion, $1.02 billion above the budget request. This program provides resources for physical, economic and social development activities. The affordable housing program, HOME Investment Partnerships Program, received $2 billion to provide assistance to state and local governments. For additional information on the legislation, please visit http://thomas.loc.gov/. OBTAINING AND RETAINING THE BEST AND BRIGHTEST The Senate recently passed legislation by a vote of 79-12 that will provide student loan relief for federal employees after they commit ten years of service. H.R. 2669 will make it more enticing for college graduates with student loan debt to accept lower income government and non-profit jobs. The measure provides student loan forgiveness of $5,000 for graduates who enter public service. The measure will increase overall college financial aid expenses by $20 billion over the next five years. The federal government currently has a student loan repayment program that permits agencies to repay federally insured student loans as a recruitment or retention tool. The loan is not forgiven; the federal agency may make payments to the loan holder of up to a maximum of $10,000 for an employee in a calendar year and not in excess of $60,000 for one employee. The House of Representatives passed identical legislation in July. The Conference Report on the bill has also been approved by both the House and the Senate. The final bill now awaits a signature by the President. For additional information visit, http://thomas.loc.gov and http://www.opm.gov/oca/pay/studentloan/index.asp. A CLARIFICATION FOR FEDERAL MANAGERS WHEN HIRING VETERANS On September 6, 2007, the House Veterans’ Affairs Subcommittee on Economic Opportunity investigated whether the complex laws giving veterans preference in federal employment is hindering compliance. Currently, the law grants veterans hiring preference once they are discharged from the military and apply for federal employment. The personnel policies at the Department of Defense allow federal managers’ discretion when terminating veterans if they are eligible for veterans hiring preference. Subcommittee Chairwoman Stephanie Herseth-Sandlin (D-S.D.) noted her concern that veterans have a difficult time obtaining employment. This program of hiring veterans is codified 5 U.S.C. and 38 U.S.C. This topic surfaced due to the concern that veterans had about the lack of adherence to the law by federal agencies. The Office of Personnel Management (OPM) administers veterans’ preference in employment. Title 5 of the U.S. Code notes that declared and undeclared wars, (i.e. Korea, Vietnam, and the Persian Gulf), are considered veterans. Such conflicts do not necessarily grant preference or service credit under Title 5 unlike those veterans who served in a declared war. To receive preference, a veteran must have been released from active duty under honorable or general discharge. Competitive appointments grant veterans a five to ten point on their civil service examination score. The law states that after two years of continuous service in a permanent position under the Veterans’ Recruitment Appointment (VRA), the appointment will be converted to that of a career service employee. Veterans will as a result be treated like any other competitive service employee in areas of promotion, reassignments or transfers. Congress is considering whether or not the simplification of the law would help hiring managers understand and meet the requirements. A clarification of the law is needed for both veterans and federal agencies, according to those present at the hearing. For OPM veterans’ preference information, please visit: http://www.opm.gov/veterans/html/vetguide.asp. For information on the hearing, please visit http://veterans.house.gov/. *********************************************************************
WHAT’S HAPPENING IN THE EXECUTIVE BRANCH? AGENCY USE OF RECRUITMENT/RETENTION INCENTIVES ON THE RISE In 2006, 47 agencies paid 22,764 recruitment, relocation, and retention incentives to employees that were worth more than $140 million, according to a new report the Office of Personnel Management (OPM) recently released to Congress. This was comprised of 3,952 recruitment incentives totaling over $32.9 million (average paid: $8,325), 1,009 relocation incentives totaling over $11.6 million (average payment of $11,530), and 17,803 retention incentives totaling over $95.9 million (average payment of $5,388). The number of recruitment and retention incentives agencies reported using in calendar year 2006 is much higher than the number reported in OPM’s calendar year 2005 report, when 34 agencies paid about $51 million. Agencies consistently reported using the incentives to accomplish strategic human capital goals, and often realized these goals at relatively low average incentive costs, OPM Director Linda Springer said in the report. Breaking down the numbers even further, 53 percent of recruitment incentives were used to recruit new employees into entry and developmental-level positions and 80 percent of relocation incentives were paid to employees in intermediate and upper level positions. The use of retention incentives was spread over a wide range of grade or work levels (the greatest use of retention incentives, in descending order, were for employees in nine different grade levels, which Springer said indicated that agencies are focused on making sure critical employees are retained at all work levels. agencies typically paid recruitment, relocation, and retention incentives to employees in occupations critical to agency missions, such as health care, engineering, security, and information technology. “I am pleased to see that agencies are using the tools available to them to attract and retain the best and brightest to the civil service,” commented FMA National President Darryl Perkinson. “In the wake of the retirement crisis we are soon to face, these incentives will become even more important to the vitality of our nation’s workforce.” By agency, the heaviest users were the Departments ofDefense, Veterans’ Affairs, Homeland Security, State and Health and Human Services. For a breakdown of agency usage of these incentives, please visit: www.opm.gov. OPM ANNOUNCES 2008 FEHBP PREMIUM INCREASE The Office of Personnel Management (OPM) Director Linda Springer announced changes in the Federal Employees Health Benefits Program (FEHBP) for 2008. Overall, the average premium increase for 2008 is 2.1 percent. In a press conference last week, Springer said 32 percent of FEHBP enrollees will see their premiums increase less than 5 percent and 91 percent of enrollees will see an increase of less than 10 percent. As 2.1 percent is the average, premium increases for enrollees vary by plan, within a range of -47 percent to 132 percent. The FEHBP features 283 plan choices in 2008, one less than in 2007. This year's FEHBP will offer 32 high-deductible health plan (HDHP) choices, an increase from 29 available in 2007. Congressman Steny Hoyer (D-Md.) introduced legislation earlier this year, H.R. 1256, to increase the government’s share of FEHBP premiums to 80 percent; currently the government contributes 72 percent. The Federal Managers Association (FMA) included H.R. 1256 in its 2007 Issue Briefs. The bill has been referred to the House Committee on Government Reform, but no further action has taken place. Similar legislation has been introduced in previous sessions of Congress with similar results. “While I am pleased the overall amount of the increase continues to remain roughly the same, we need to do more to expand the coverage of health care options and further reduce the financial burden placed on federal workers and their families,” said FMA National President Darryl Perkinson. The Federal Benefits Program Open Season for 2008 will be held government-wide November 12 through December 10. During this time, federal employees may make changes to their health care coverage. For more information on the premium increase, please visit OPM online at www.opm.gov, and for more information on FMA activities on this front, please visit us online at www.fedmanagers.org. DHS RECEIVES LIMITED RATING IN HUMAN CAPITAL MANAGEMENT The Government Accounting Office (GAO) published a report on the fourth anniversary of the creation of the Department of Homeland Security (DHS). The GAO report, entitled “Progress Report on Implementation of Mission and Management Functions,” delves into DHS’s deficiencies in human capital management. The topics surveyed by the GAO include pay, performance management, classification, labor relations, adverse reactions, employee appeals and diversity management. DHS was successful in two out of eight of the criteria for effective human capital management. DHS was lauded for its success in developing a results-oriented strategic human capital plan and for the creation of a comprehensive plan for training and professional development. However, the GAO report also noted that limitations within DHS’s human capital plan. The report concluded that DHS did not link human capital planning to the overall agency strategic planning. Additionally, DHS did not do enough to recruit and hire employees, or create mechanisms that measure the agencies’ performance. According to the GAO report, DHS is deficient in the establishment of a performance based pay system. Also, the report noted that employees did not have the opportunity to participate in the decision-making process. The GAO observed that DHS failed to implement training and development programs for its employees. DHS may be lacking in outcome based goals and measures but considering the agency was organized four years ago, it has made tremendous strides. The GAO report commented that agencies much smaller than DHS may take a minimum of seven years to fully implement their policies after a reorganization. To obtain GAO 07-454, please visit http://www.gao.gov/. GAO REINFORCES NEED FOR DOD MANAGEMENT CHIEF In 2005, the Government Accountability Office (GAO) added the Department of Defense’s (DOD) approach to business transformation to its high-risk list. In a report released this month (GAO 07-1072), GAO assesses the progress DOD has made in setting up a management framework for overall business transformation efforts and the challenges DOD faces in maintaining and ensuring the success of those efforts. As part of the report, GAO called on Congress to enact legislation to establish a chief management officer position within DOD. The executive filling the job would serve a term of five to seven years and focus exclusively on management and business transformation. The report stated, “ We have long advocated the need for a chief management officer (CMO) at DOD with significant authority and experience and a term of office that would focus the necessary attention on enterprisewide business transformation and sustain progress across administrations.” However, in a May 2007 letter to Congress, DOD stated that a separate position is not needed as the Deputy Secretary of Defense can fulfill the CMO role. In response to DOD’s position, GAO stated, “[ we] believe the establishment of a separate CMO position would bring leadership, accountability, focus and direction to the department’s efforts rather than creating competition and causing confusion.” Currently, neither the House nor Senate versions of the Defense Authorization bill (H.R. 1585/S. 1547) would create the CMO position. For a full copy of the GAO Report, please visit: www.gao.gov. A TECHNICAL ROBBERY THAT STOLE MORE THAN NAMES The Office of Personnel Management’s (OPM) federal government job search Web site, USAJOBS, experienced a recent attack. The technology provider of USAJOBS, Monster Worldwide, which maintains Monster.com, was hacked into by a malicious software program which was used to gain unauthorized access to the Monster.com resume database. The contact information, consisting of names, e-mail addresses, and telephone numbers, has been used by "phishing e-mailers" in an attempt to collect sensitive information from job seekers. Monster has assured OPM that no Social Security Numbers were compromised. OPM is requesting the public to remain vigilant for counterfeit “phishing” e-mails that may come from Monster.com. OPM states that USAJOBS will never request personal information through an unsolicited email. OPM is asking the public to e-mail suspicious email regarding your USAJOBS search with the full header information intact to: mayday@fedjobs.gov. Instructions for obtaining header information can be found at: http://www.spamcop.com/help_with_headers/. IT’S OFFICIAL: OMB DIRECTOR CONFIRMED With bipartisan support, the Senate confirmed former Congressman Jim Nussle as the next Director of the Office of Management and Budget (OMB)on September 4, 2007. Nussle’s predecessor, Rob Portman, stepped down earlier this summer. President Bush said of the confirmation, “Jim is a strong advocate for fiscal discipline and pro-growth economic policies, and he will help lead efforts to balance the budget by 2012 by restraining federal spending and keeping taxes low. And as OMB Director, he will work to provide transparency regarding federal spending and earmarks, strong accountability in government, and better results for taxpayers. I congratulate Jim and his family on today's confirmation and thank him for his continued service to our Nation.” For more information on Nussle’s appointment, please visit http://www.whitehouse.gov/omb/. ******************************************************************** GET INVOLVED AT THESE EVENTS! HUMAN CAPITAL MANAGEMENT SYMPOSIUM: FEDERAL 2007 The Federal Managers Association is cosponsoring the Human Capital Management Symposium: Federal 2007 conducted by Worldwide Business Research, November 14-16, 2007, at the Hilton Embassy Suites, Convention Center, in Washington, D.C. Human Capital Management: Federal 2007 supports the government’s initiatives towards human resource transformation. By providing a venue for all human capital leaders and professionals in the federal sector to discuss the issues, brainstorm for solutions, and discover successful implemented programs, you get the opportunity to validate your current human capital management plans and apply tools and strategies to maximize the value of your human capital. For more information, please click here.
******************************************************************** Long Term Care Partners, LLC, 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 Hudson Insurance Group, 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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