Federal Managers Association

Other FMA Zone Conferences are set to take place over the summer. Please continue to check FMA’s Web site for the most up-to-date information: www.fedmanagers.org.

TSP ADVISORY COUNCIL PROVIDES BIANNUAL RECOMMENDATIONS

The Employee Thrift Advisory Council (ETAC), consisting of several labor unions and federal employee groups including the Federal Managers Association, convened on February 4 for its biannual meeting to discuss recent legislation affecting the Thrift Savings Plan (TSP), the federal retirement package equivalent to that of a 401(k). FMA Government Affairs Director Jessica Klement attended the meeting on the Association’s behalf. The Council’s discussion centered on legislation passed by the House in 2008 that would automatically deposit the contributions of enrollees who express no preference in their savings plan into a default fund that pursues a riskier investment approach than the current default fund. Although ETAC supported establishing the riskier Lifecycle (L) Fund as the default during a 2008 meeting, the recent downturn of U.S. markets prompted several Council representatives to reevaluate their previous opinions.

Current law dictates that if an employee fails to direct his or her investments to a certain fund, TSP will deposit that money in a relatively cautious government securities fund, known as the G Fund. With the markets in a steep decline, ETAC members engaged in a debate over the potential costs and risks associated with a transition to the L Fund. As several representatives noted, investors that did not devote constant attention to their fund selections could have faced serious financial burdens had TSP replaced its default fund.

“In order to safeguard the interests of federal employees enrolled in TSP, we must pay attention to market conditions,” FMA National President Darryl Perkinson explained. “In early 2008, with the markets in solid shape, the L Fund appeared to provide investors with the greatest return. Times have changed, however, and it is most prudent to pursue a conservative investment strategy to keep as much money in the retirement funds of these dedicated civil servants.”

The Council expressed an interest in further monitoring the L Fund, resolving to meet once again should Congress reintroduce the legislation during this session.

Other topics discussed at the meeting included the continued support of legislation that would automatically enroll federal employees in the TSP unless they decided to opt out. ETAC also favored supporting legislation that would allow the widows or widowers of federal employees to keep their investments in the TSP. Another topic of discussion was the possible addition of a Roth Individual Retirement Account option, a measure supported by the majority of enrollees.

The Federal Retirement Thrift Investment Board, administrators of the TSP, established ETAC under the Federal Employees’ Retirement System Act of 1986, P.L. 99-335, to advise the board on issues relating to the investment plan. ETAC consists of 15 employee organizations, including FMA.

For more information on the TSP, please visit: www.tsp.gov.

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WHAT’S HAPPENING ON CAPITOL HILL?

STIMULUS PACKAGE POISED FOR SENATE VOTE

Following a series of debates in the halls of Congress centered on the proposed federal stimulus package, it appears that the Senate is set to issue its final vote on the measure in the upcoming days. Despite a complete lack of Republican support on the House version of the bill, which passed last week and totaled $819 billion, several Senators from the minority party have issued their support for the legislation. Although Democratic leaders are once again touting the American Recovery and Reinvestment Act of 2009 (S. 1) as a bipartisan effort to stimulate the economy, many members of the GOP clearly stated their continued opposition to the package.

The stimulus bill initially ballooned to nearly $900 billion in the Senate, prompting outrage from several key Republicans who argued the legislation promoted wasteful spending at the expense of immediate relief. Through closed-door negotiations, lawmakers either completely cut or trimmed many of the programs contained in the original Senate bill, reducing the overall cost to roughly $827 billion. Senate Majority Leader Harry Reid (D-Nev.) believed both parties took the necessary steps to ensure the bill would move to the President.

“We are soon going to pass a bill that creates or saves millions of good-paying jobs here in America,” Reid announced. “We are making life easier for the middle class, who are squeezed between rising prices and disappearing incomes. And we are making investments in America to strengthen our long-term economic future. Is this plan perfect? No. But at the end of the day we are passing a bold and responsible plan that will help our economy get back on its feet, put people to work and put more money in their pockets.”

Although Reid may find enough support in the Senate to pass the legislation, many Republicans remain unsatisfied with the amount of cuts made and the general direction and focus of the package. Senator John McCain (R-Ariz.) affirmed his belief that continued negotiations between the two parties would fail to culminate in a bipartisan measure if the bill maintained its emphasis on government spending.

“We have an opportunity to craft a bill that would provide real relief to the American people in a time of great economic uncertainty,” said McCain. “Unfortunately, that opportunity has so far been rejected. Once again parochial, partisan, and special interests have taken precedence over the interests of the American people.”

As of press time, Republican Senators Susan Collins (R-Me.), Olympia Snowe (R-Me), and Arlen Specter (R-Pa.), were engaged in negotiations with Senate Democrats. If the bill is to pass the Senate, Democrats will need the support of at least a three members of the GOP.

For more information on the bill, please visit: http://thomas.loc.gov/.

SENATE PRESERVES SSA FUNDING IN STIMULUS

Senators Susan Collins (R-Me) and Ben Nelson (D-Neb.) offered an amendment to the American Recovery and Reinvestment Act of 2009, S. 1, which would reduce the bill’s total funding by nearly $100 billion in an effort to gain bipartisan support for the legislation. The amendment initially cut $140 million in funding for the Social Security Administration’s(SSA) Health IT program, but efforts on the part of federal employee advocacy groups ensured that the agency would receive the full funding contained in the original Senate stimulus package proposal.

In addition to the $140 million, SSA is also slated to receive $750 million for a National Computer Center and related costs and $3 million for the Office of the Inspector General, according to the Senate version of the package. As the bill currently stands, SSA’s funding would total $893 million. In his fiscal year 2008 annual report on the agency’s disability hearings backlog, SSA Commissioner Michael Astrue emphasized his commitment to providing the highest level of service to the American public, calling on Congress to provide proper funding to allow SSA to streamline its disability claims’ process through the hiring of adequate staffing levels and the enhancement of information technology services in its Office of Disability Adjudication and Review (ODAR). Cuts contained in the original Nelson-Collins amendment would have dealt a severe blow to the agency’s efforts.

“We are committed to serve every person who comes before us, and ODAR’s impressive performance in 2008 exemplifies the pursuit of excellence in service,” Astrue said in the annual report. “Our success in no way diminishes the importance of the thousands of cases that remain to be processed. While the road to reach this goal still stretches before us, in 2009, with the continued support of the Commissioner, other agency components, and the Congress, I know we will continue to move forward with dedication and optimism to accomplish our goal of eliminating the hearing backlog and preventing its recurrence.”

The Federal Managers Association (FMA), which testified before Congress on multiple occasions to express the Association’s commitment to providing SSA with the tools necessary to eliminate the backlog of disability hearings requests, issued its support for the removal of the funding cuts for the Health IT program. FMA National President Darryl Perkinson said that providing SSA with adequate funding must remain a priority in the 111th Congress.

“We demand the highest level of service from the Social Security Administration,” Perkinson explained, “yet we time and time again fail to provide them with the means to accomplish the tasks at hand. While eliminating the proposed cuts in the Nelson-Collins amendment is a step in the right direction, Congress must recognize that the critical nature of the agency’s work demands greater attention. If SSA is to truly eliminate the backlog, it is the duty of Congress to provide the tools that can get the job done.”

For more information on the stimulus package, please visit: http://thomas.loc.gov.

HOUSE INTRODUCES FERS REDEPOSIT LEGISLATION

Federal employees returning to civil service after transitioning to the private sector would be able to fully recover their annuity credit if legislation introduced on February 4 is approved. The bill, H.R. 828, allows employees enrolled in the Federal Employees Retirement System (FERS) to redeposit their annuity if they opted to cash out or roll it into a private savings account upon leaving the federal workforce. Under current law, FERS employees lose their pension credit for previous years of federal service if they opt to exit and then reenter government.

Introduced by Congressmen James Moran (D-Va.), Frank Wolf (R-Va.), and Gerry Connolly (D-Va.), H.R. 828 would bring FERS employees in line with their Civil Service Retirement System (CSRS) counterparts who currently enjoy this benefit. The FERS Redeposit Act, as the bill is called, is touted as a means to maintain institutional knowledge critical to the advancement of the federal government’s mission in the midst of a looming retirement wave.

“This legislation is about enticing experienced federal employees to return to government service at a time when our nation needs its best and brightest the most.” Congressman Moran commented. “Our bill was developed in response to the coming ‘brain drain’ – the fact that in eight years, 90 percent of civil service federal executives will be over the age of 50 and nearing retirement. This 'brain drain' is a grave threat to our well-functioning federal workforce.”

Federal Managers Association (FMA) National President Darryl Perkinson voiced his support of the motion to remove the penalties facing federal employees seeking reemployment in the civil service. “We are in the midst of a human capital crisis, exacerbated by the fact that sixty percent of all federal managers and supervisors – roughly 100,000 workers – and more than half of the current federal workforce – about 900,000 employees – will be eligible for regular or early retirement in the next few years,” Perkinson said. “We at FMA believe there must be a proper mix of managers, rank-and-file employees and senior executives in order to fulfill each agency’s mission.”

“As the baby boomers start to flee government, we need to take every effort to ensure their expertise will not be lost with them,” he continued. “FMA is supportive of legislation which could fill mission-critical positions with those who already have a working knowledge of our government.”

To view a copy of the FERS Redeposit Act, please visit: http://thomas.loc.gov.

DEMOCRATS, REPUBLICANS SET OVERSIGHT COMMITTEE

Congressman Edolphus Towns (D-N.Y.), Chairman of the House Oversight and Government Reform Committee, published the Members and Chairs that will serve on his Subcommittees in the 111th Congress. Announced February 4, Towns’ selections set the Democratic Party’s ranks on a Committee that has already established an aggressive list of priorities only a month into the new Congress.

Towns tapped Representative Stephen Lynch (D-Mass.) to Chair the Subcommittee on the Federal Workforce, Postal Service, and the District of Columbia. The Subcommittee, with jurisdiction over federal employee issues, played a critical role in the 110th Congress, addressing topics ranging from revisions to the government’s Federal Employees Health BenefitsProgram (FEHBP) to expansion of minority participation in the federal workforce. Delegate Eleanor Holmes-Norton (D-D.C.) holds the second senior spot on the Democratic side in the Subcommittee.

The same day Democrats set their Oversight Committee members, Republican Ranking Member Darrell Issa (R-Cali.) announced his party’s leadership posts on the subcommittees. Issa chose Representative Jason Chaffetz (D-Utah) to serve as Ranking Member of the Subcommittee on the Federal Workforce, Postal Service, and The District of Columbia.

“President Obama’s repeated commitment to unprecedented transparency presents an historic opportunity to fix problems in the Federal Government that have festered through both Republican and Democratic administrations,” said Issa on the Ranking Member’s Web site. “With the help and leadership of our subcommittee Ranking Members, Republicans will chart an aggressive course to investigate and fix problems identified by the Government Accountability Office, Inspectors General, and anyone with information about waste, fraud, and abuse.” 

For more information on the House Oversight and Government Reform Committee, please visit: http://oversight.house.gov/.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

USDA UNVEILS PAY-FOR-PERFORMANCE PILOT

In an effort to boost recruitment at the Department of Agriculture (USDA), the agency announced its intentions to initiate a five-year pay-for-performance pilot program beginning in July of 2009. USDA will enroll roughly 2,900 non-bargaining unit employees from the Food Safety Inspection Service (FSIS) into the system, according to an announcement on January 28 in the Federal Register.

According to FSIS, the agency faces the prospect of losing half of its mission-critical staffing in the next decade, as the current average age of these valued employees eclipses 50. Efforts to stem the brain-drain to date include the allocation of over $1 million for recruitment and retention incentive. According to the announcement in the Register, however, FSIS determined that an overhaul of the personnel system would provide the information necessary to determine how to best attract an ideal workforce.

“As the Federal Government’s workforce as a whole continues to experience significant changes, FSIS has been confronted with several considerable challenges that are driving the need for this demonstration project…Through the demonstration project, FSIS will be able to take a proactive role in finding solutions to all of these challenges in order to attract the best qualified candidates and to retain and motivate its current workforce,” the agency stated.

Plans for such a program were first announced in May of 2008, motivated in part by the adoption of similar pay systems within other federal agencies. Pay-for-performance programs have recently faced intense scrutiny, however, as federal employees enrolled across government grapple with the increased challenges presented by implementation of the new systems. FSIS said that rewarding employees with pay raises based on performance falls in line with USDA’s mission to provide the public with highest level of service.

“By implementing a modern human resources management system that supports and protects this critical role in public health, food safety, and food security, FSIS will be better prepared in serving the general public by ensuring the nation’s commercial supply of meat, poultry, and processed egg products are safe, wholesome, and correctly labeled and packaged,” FSIS affirmed.

According to the pilot program’s description, a self-written employee accomplishment report and a supervisory rating justification will form the basis of the assessment. A second supervisor and a pay pool panel will then review the resulting rating recommendation to determine the final evaluation. If an employee is unsatisfied with their rating, the option of distributing their personal assessment to a different supervisor allows for another opinion.

For more information on the pilot, please visit: http://edocket.access.gpo.gov.

WHISTLEBLOWER AMENDMENT EXTENDS FEDERAL EMPLOYEE RIGHTS

Lawmakers inserted an amendment in the House version of the $819 billion proposed stimulus package, H.R. 1, which would provide greater protections for federal employees reporting cases of fraud, abuse, and misuse in government programs. Representatives Todd Platts (R-Pa.) and Chris Van Hollen (D-Md.) fought for the inclusion of the Whistleblower Protection and Enhancement Act, which passed the House in the 110th Congress, to further bolster several accountability provisions already contained in the stimulus package.

The measure expands the rights and protections for whistleblowers on several fronts in an effort to improve transparency and hold individuals and agencies responsible in the allocation of federal funds. The proposed amendment would extend federal employees the right to a trial jury in federal court, enhance protections for government scientists and FBI agents reporting misconduct in the workplace, and allow whistleblowers to provide evidence of reprisal before the Merit Systems Protection Board finalizes a ruling favoring a federal agency. Several other protections advanced in the amendment further strengthen the ability of federal employees to report poor unlawful activity.

“It is abundantly clear that we must make investments now to stimulate our economy, get people back to work and get our economy back on track,” Van Hollen said.  “However, the American people deserve to know that these investments are being well-spent, and that’s why this bi-partisan whistleblower protection measure is so important.” 

For more information on the provision, please visit: http://thomas.loc.gov.

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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!

Next Registration Deadline is February 27, 2009: Sign Up Now!

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. For more information or to register, please visit: http://www.fedmanagers.org/public/events.cfm.

HAVE YOU SIGNED UP FOR THE FMA ADVANTAGES PROGRAM?

If not, you should. Your FMA membership will pay for itself when you utilize the fantastic discounts offered by over 600 merchants. It’s free and easy!

To enroll, simply provide the FMA National Office with your home e-mail address. You will be sent a PIN to be used to enroll in the FMA Advantages Program. If you already have your PIN, register at https://fma.onebigplanet.com/ by clicking on the “Join” page. Please take advantage of this valuable program.

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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 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.

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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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