Federal Managers Association

FMA ’s legislative agenda is currently being discussed among our leadership. To weigh in, please contact your Chapter President or the National Office. If you would like to learn more about FEEA or wish to contribute, please visit www.feea.org.

GMC URGES OBAMA TO RETAIN CRUCIAL MANAGEMENT POSITIONS

The Government Managers Coalition (GMC), a partnership of five major federal-sector executive and management professional associations of which the Federal Managers Association is a member, composed a letter to President-Elect Barack Obama’s transition team expressing concern that the Obama Administration may look to thin the ranks of mid-level managers in the federal government. Obama has suggested such an effort may be on his list as he attempts to tackle government reform, and the GMC argued that a strategy of enacting capricious cuts will negatively impact the ability of agencies to effectively address their missions and long-term goals.

“An arbitrary cut of managers based upon an across the board ratio for all of Federal service is not the answer,” the letter stated. “Instead, we encourage you to think about the long-term impact that qualified managers have on the ability of an agency to meet mission critical goals.”

The GMC letter referred to many of the policies and attitudes displayed towards middle managers during the Clinton Administration, pointing out that many of the cuts were made, “without any measurement of the effectiveness of the effort and undoubtedly have had a direct impact on the increasing backlog of cases at the Social Security Administration and Veterans’ Affairs.”

Effective reform of the management sector, the letter proposed, should entail a comprehensive objective review on the part of the Government Accountability Office (GAO) to determine how the managerial cuts in the 1990’s affected the federal government’s operations. A subsequent agency by agency review conducted under the President-Elect’s supervision should then seek to determine where managers are needed most, what skills are necessary to accomplish critical tasks, and what method of training will best equip managers to effectively supervise their employees in a manner consistent with governmental and agency specific performance goals. Arbitrary cuts, the letter argues, does nothing to advance the government’s mission.

“Based on our observations and feedback from our associations’ members, the negative impacts of these cuts on the remaining managers and the ability of federal employees to meet agency critical missions has been long-lasting,” GMC concluded. “With the onset of retirements predicted over the next few years it is probable that non-surgical reductions will result in skill imbalances, loss of institutional memory, severe work pressure and responsibilities beyond the managers’ training level, a loss of focus on agency goals and a lack of lower level managers ready and willing to accept higher level positions.”

To view a copy of the letter, please visit the Members Only section of FMA’s Web site at: www.fedmanagers.org.

*************************************************************

WHAT’S HAPPENING ON CAPITOL HILL?

TOWNS TO CHAIR HOUSE OVERSIGHT COMMITTEE

Congressman Edoplhus Towns (D-N.Y.) will assume the role of House Oversight and Government Reform Committee Chairman, succeeding Rep. Henry Waxman (D-Cali.) who won the chairmanship of the House Energy and Commerce Committee in the 111th Congress . Towns will step down as Chairman of the House Oversight and Government Reform Subcommittee on Government Management, Organization, and Procurement and will vacate his role on the House Energy and Commerce Committee for a period of two years. A replacement of Towns as Chair of the Subcommittee has yet to be decided.

"I am humbled and honored by my colleagues' support and confidence,” Towns announced following his nomination. “There is a great deal of work to be done to ensure a smooth transition, and I look forward to working with both my Democratic and Republican colleagues in concert with the Obama Administration to ensure the federal government is transparent, responsive and efficient."

Towns , who has served on the House’s investigative committee for the past 26 years, said he intends to refocus efforts on constructive oversight of the executive branch and private sector, contracting reform, the rights and duties of federal employees, and voting representation for the District of Columbia.

Republicans have selected Rep. Darrell Issa (R-Cali.) to serve as Ranking Member of the House Oversight and Government Reform Committee. Issa replaces Rep. Tom Davis (R-Va.) who chose not to run for reelection to the House in 2008.

“I look forward to leading committee Republicans and working with my Democratic colleagues in helping the new Administration of President Barack Obama root out waste, fraud, and abuse in the Federal government,” said Issa. “As Americans across the political spectrum want return on their tax dollars – oversight can and should be bipartisan.”

The new leaders will assume their posts when the 111th Congress convenes on January 6, 2009.

************************************************************

WHAT’S NEW IN THE EXECUTIVE BRANCH?

BUSH DETAILS 3.9 PERCENT PAY RAISE FOR FEDERAL EMPLOYEES

President Bush signed an executive order on December 18 approving the 3.9 percent pay raise for civilian federal employees included in the continuing resolution (CR) set to fund the government until March 6, 2009. The raise, in line with that received by members of the military and a full one percentage point higher than that solicited by Bush is his February budget request, allocates 2.9 percent of the total for an across the board base pay increase while securing the remaining one percent for locality pay adjustments.

In conjunction with the executive order, the Office of Personnel Management (OPM) released the agency’s updated locality pay tables, which detail how large a locality pay adjustment various regions across the United States receive. Employees residing in the Washington-Baltimore-Northern Virginia and San Jose-San Francisco-Oakland regions will receive a 4.78 and 4.31 percent pay increase respectively, the largest overall increases for 2009. Federal employees residing in the “Rest of U.S.,” areas not receiving individual locality pay adjustments, will receive a total pay increase of 3.52 percent.

Federal Managers Association President Darryl Perkinson commented, “The civil service has earned this 3.9 percent pay raise and deserves compensation for their hard work in line with that received by their military counterparts. While government agencies must struggle with budgetary constraints imposed by the continuing resolution, I am pleased that the men and women who devote themselves to public service will not become victims of the government’s inability to secure adequate funding.”

To calculate your 2009 pay raise, please view a copy of OPM’s locality pay tables at: www.opm.gov.

OPM EXTENDS FEHBP ENROLLMENT, BLUE CROSS AMENDS COVERAGE

On December 5, the Office of Personnel Management (OPM) announced that federal employees enrolled in the Federal Employee Health Benefits Program (FEHBP) will have until the end of January to make changes to their plans, pushing back the Open Season deadline originally set for December 8. A hearing held by the House Oversight and Government Reform Subcommittee on Federal Workforce, Postal Service and the District of Columbia on December 3 stimulated the extension, as several lawmakers raised concerns over certain modifications made to specific insurance coverage plans.

Following pressure placed on the agency by the Subcommittee to allow more time for both employees enrolled in FEHBP to reevaluate their coverage options and insurance companies to reassess the benefits they provide, OPM determined that an extension of the enrollment period through January 31 would grant federal employees a sufficient amount of time to select the proper coverage. OPM encourages employees enrolled in FEHBP to engage the agency’s Open Season Web sites, call centers, or their own agency human resources departments if any modifications to their benefits packages are desired.

The hearing held on December 3 specifically addressed a concern federal employees asserted over changes with the out-of-network surgery benefits provided by the Blue Cross Blue Shield (BCBS) Standard Option plan. In 2008, BCBS required enrollees to pay 25 percent of a non-emergency surgery performed by an out-of-network surgeon, plus any difference between the BCBS allotment for the surgery and the billed amount. BCBS originally altered the plan for 2009, requiring enrollees to pay the first $7,500 of any such surgery. After consideration of objections to this coverage change, BCBS will now require enrollees to pay 30 percent of any non-emergency surgery performed by an out-of-network doctor plus the aforementioned difference.

Details of the alterations made to the BCBS Standard Option plan are available on both the OPM and BCBS Web sites. According to OPM, no other insurance carriers have changed their benefits previously established for 2009.

For more information on the Open Season extension, please visit OPM at: www.opm.gov.

OPM ANNOUNCES FALL IN PACIFIC REGION COLA

Federal employees residing in Hawaii may receive a lower cost-of-living allowance (COLA) in 2009 than enjoyed the year before, according to a recent survey conducted by the Office of Personnel Management (OPM). OPM’s survey, released on December 9, found that the cost-of-living in the Pacific region, in which Hawaii is included, fell in comparison to Washington, D.C., the location on which the COLA is adjusted.

OPM calculates regional COLAs by first establishing a baseline through data obtained on D.C., using the city as a base to establish an index of living costs. Washington receives a value of 100, and all other regions fluctuate around the figure depending on their relative living costs. Included in the cost-of-living assessment is the average amount of money spent on food, rent and utilities, and other general expenses such as clothing.

The state of Hawaii is broken down into several counties, each receiving its own cost-of-living index score. The survey gathered information on prices in Honolulu County, Hawaii County, Kauai County, Maui County, while also looking at Guam and the Commonwealth of the Northern Mariana Islands. OPM then established specific indexes for each area, all assigned in relation to the cost-of-living observed in Washington.The final cost-of-living index scores as computed by OPM are as follows: Honolulu County received a 121.37; Hawaii Country a 111.71; Kauai County a 118.14; Maui County a 123.62; and Guam along with the Commonwealth of the Northern Mariana Islands a 119.98. Each of these scores reflects a decrease in the COLA rates across the entire Pacific region.

OPM has yet to detail exactly to what extent the results of the survey will impact the new COLA in each of the locations. News of the falling COLA comes in the midst of a legislative battle on Capitol Hill to transition employees residing in non-foreign areas outside of the contiguous United States from COLA to locality pay, as enjoyed by their stateside peers.

“We continue to witness the damaging effects of restricting our fellow federal employees in Hawaii and Alaska from receiving locality pay,” Federal Managers Association President Darryl Perkinson said upon release of the report. “COLA may have once served a purpose, but it now acts as a serious impediment to the recruitment and retention efforts of government agencies. As the COLA continues to fall in the Pacific, feds will continue to vacate their posts in search of opportunities stateside that will afford them the rights they deserve.”

For more information on the report, please visit OPM’s Web site at: www.opm.gov.

TREASURY DEPARTMENT RELEASES U.S. FINANCIAL REPORT

The Treasury Department and the Office of Management and Budget (OMB) released their annual Financial Report of the United States Government for fiscal year 2008 last week, detailing the government’s current financial standing and providing insight into the nation’s short and long-term financial outlook. The report is designed to compliment the President’s budget which will be released in the spring of 2009.

While the President’s budget specifies how the government spends or intends to spend the money it receives each year, the Financial Report reveals the cost of operations, the manner in which those costs will be financed, the amount of money owned and owed by the government, and the status of the country’s social insurance programs. In these times of economic uncertainty, of critical interest in this year’s report is a discussion of the steps taken by the government to reverse the instability that currently plagues the U.S. financial system. Treasury Secretary Henry M. Paulson, Jr. argued that in facing these economic challenges, we must have the foresight to look at the big picture as we struggle with the hardships of today.

“Throughout this unprecedented year, the Treasury Department has worked to achieve and maintain the stability of the financial system with short-term actions, but we must not forget the long-term needs that pose a significant threat to our country's fiscal sustainability," Paulson said. "The projected costs for Medicare, Medicaid and other social programs are much greater than the resources that will be available to pay for them. Changes are needed to ensure these programs are fiscally sustainable."

According to the report, revenue rose by $34 billion, or one percent, compared to last year. Total costs for FY08 stood at $3.6 trillion, a 25 percent increase over FY07. Net operating costs were up to $1 trillion compared to $275.5 billion the year before, largely attributed to the economic decline and the government’s subsequent response.

In spite of the public’s lack of confidence in the nation’s financial system, OMB Director Jim Nussle echoed Paulson’s belief that combating the present struggles while never losing sight of our long-term goals will create the stability necessary to restore confidence in the system.

"It is without question that we face extraordinary challenges in our financial markets and the larger economy," affirmed Nussle. "As a result, the bottom-line budget results in the short-term are sobering. It is imperative to continue to aggressively confront today's challenges. Functioning markets and a healthy economy will not only help put the federal budget back on a path towards balance, but will position us to take on inevitable future economic challenges, such as the our nation's biggest budgetary challenge, the entitlement crisis."

To view a copy of the report, please visit the Treasury Department’s Web site at: www.ustreas.gov.

PRESIDENT AWARDS AGENCIES FOR MANAGEMENT EXCELLENCE

The Office of Personnel Management (OPM), in conjunction with President Bush, honored the recipients of the Presidential Awards for Management Excellence, known also as the President’s Quality Awards, in a ceremony held on December 4. The awards, presented to three agencies displaying the utmost attention to managerial excellence, represent the highest honor given to executive branch agencies in terms of administration. This year, the Environmental Protection Agency (EPA), Department of the Treasury, and the Department of Defense (DOD) received the President’s awards.

First established in 1988, the President’s Quality Awards recognize the accomplishments of organizations in the advancement of the Administration’s objectives. Organizations are distinguished for their performance and results, and each winner of the award serves as the poster child of the model agency that provides services that are “citizen-centered, results-oriented, and market-oriented.” The awards are based on agency scores under the President’s Management Agenda (PMA) Scorecard and are broken down into three categories. Eligibility for a Category One award requires an agency to secure yellow status or better for the Government-wide Management Initiative. Eligibility for a Category Two award necessitates a green status for the Government-wide Management Initiative. The Category Three award requires an agency to have achieved green status in four of the Government-wide Management Initiatives.

OPM Acting Director Michael Hager presided over the event, which was held at the National Museum of Women in the Arts in Washington, D.C. “I am very glad to be here tonight to honor the achievements of hard working and proud federal employees," said Hager. “Their contributions are something we can turn to as examples of the best of federal government."

During the ceremony, EPA received the award for overall management. Both the Department of the Treasury and DOD received awards for displaying innovative and exemplary practices. DOD was honored twice, as both the Office of the Assistant Secretary of the Army and the Office of the Assistant Secretary of Defense Health Affairs received recognition for their efforts.

For more information on the awards, please visit: www.opm.gov.

BUSH GIVES FEDS DAY AFTER CHRISTMAS OFF

In the waning days of his presidency, President Bush issued an executive order directing executive branch agencies to close their offices on Friday, December 26. Though the order allows agency heads to retain some essential staff if necessary, most federal employees will now be able to enjoy a four-day weekend over the holiday.

When Christmas falls on a Tuesday or Thursday, the President often gives federal employees a full or half day off, as was the case in 2007 when Bush ordered agencies to close the day before Christmas, which fell on a Tuesday.

New Year’s Day falls on a Thursday this year as well, but don’t expect another four-day weekend. President Nixon was the last to grant feds an extended weekend around New Years, and that was back in 1973.

************************************************************

GET INVOLVED AT THESE EVENTS!

HUMAN CAPITAL MANAGEMENT SYMPOSIUM: DEFENSE 2009

The Premier Defense Symposium on Human Capital Management

The Human Capital Management Defense Symposium (HCMD), February 26-29, 2009, in Arlington, Virginia, is critical to your success in strategically managing human capital. Learn how senior leaders are developing the right mix of skills across the total force, aligning skills to requirements, and addressing competency gaps. Attend HCMD to gather best practices in the recruitment and retention of quality personnel and learn about exciting workforce development initiatives across DOD. FMA is an official cosponsor of this conference.

For more information, please visit: www.hcmd2009.com.

REGISTER TODAY FOR FMA’S 71ST ANNUAL NATIONAL CONVENTION!

Registration is now available for the Federal Managers Association’s 71st annual National Convention and Management Training Seminar. Held March 16-19, 2009, the Convention will feature a mix of association business, management training and FMA’s annual lobbying day, Day on the Hill. Management training topics include managing through the presidential transition, engaging leadership, employee management and the Hatch Act. Early bird registration is available through January 23, 2009. For more information or to register, please visit: http://www.fedmanagers.org/public/events.cfm.

************************************************************

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 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, 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.

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.

***********************************************************

The Washington Report is published biweekly by the Federal Managers Association.
Jessica Klement, Editor; Karl Gruss, Staff Writer

The Federal Managers Association, established in 1913, is the oldest, largest, most influential association representing the interests of the 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

Washington Report Archives