Federal Managers Association

For more information on PSRW, please visit: www.ourpublicservice.org.

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WHAT’S HAPPENING ON CAPITOL HILL?

CONGRESS EMPHASIZES PAY PARITY IN FY10 BUDGET PROPOSAL

In his February budget outline, President Barack Obama proposed a 2 percent pay raise for civilian federal employees and a 2.9 percent raise for members of the armed services. On April 29, both the House and Senate backed the principle of pay parity in passing the final edition of the 2010 budget resolution, H.CON.RES.85/S.CON.RES.13. Though the resolution does not propose a concrete figure both the military and civil service employees should receive in fiscal year 2010, the language sets the tone for further debate during the appropriations process.

“We understand that during these trying economic times it is unreasonable to demand the same generous raises we have enjoyed in the past,” Federal Managers Association National President Darryl Perkinson said. “I am, however, extremely pleased that Members of Congress are committed to sticking with legislative precedent of proposing pay parity across the federal workforce. The men and women who serve this country as civil servants devote their lives to the public good, and it is imperative that Congress and the Administration recognize their efforts.”

Lawmakers are hesitant to predict the final figure federal employees will receive, citing the financial challenges facing the entire U.S. workforce as the primary determinant as they move forward during the appropriations process. Congressman Gerry Connolly (D-Va.), a proponent of pay parity, and others issued their assurances that regardless of the percentage increase, parity would be established in the final bill.

“Just as our military men and women have distinguished themselves throughout history and particularly during this time of war, our civilian federal employees also perform important work on essential government functions and services,” Connolly said.  “During my recent visit to Iraq and Afghanistan, I saw the critical role civilian employees play in handling logistical support and other vital services to the military, often working side-by-side with our troops in dangerous situations.”

For more information on the Congressional 2010 budget resolution, please visit: http://thomas.loc.gov.

HOUSE COMMITTEE SUPPORTS PAID PARENTAL LEAVE ACT

The House Oversight and Government Reform Committee approved legislation on May 6 which would require agencies to offer employees at least four weeks of paid parental leave upon the birth or adoption of a child. Introduced by Representative Carolyn Maloney (D-N.Y.), the Federal Employees Paid Parental Leave Act of 2009, H.R. 626, adds this new provision to the 1993 Family and Medical Leave Act, P.L. 103-3, which entitles new parents to 12 weeks of leave but does not require any form of compensation.

“The current recession only makes paid family leave more important. No Federal employee who’s a new parent should be forced to choose between their paycheck and their newborn – or newly adopted – child in those vital first few weeks home,” Maloney stated. “As the nation’s largest employer, the Federal Government can – and should – lead the way on this issue.”

Maloney has introduced similar legislation over the past ten years, and the House passed an identical version of H.R. 626 during the 110th Congress. Previous versions of the legislation, however, have faced roadblocks due to the cost associated with the additional compensation. In past years, Maloney pushed for eight weeks of paid parental leave, but pared down her request to garner greater support. Critics of the current measure argue that given the current economic climate, with Americans losing jobs, the addition of another benefit for federal employees may send the wrong picture to the public.

Committee Chairman Edolphus Towns (D-N.Y.), countered opposition protest by emphasizing the bill provides another opportunity to bolster the federal government’s recruiting and retention efforts, placing agencies in a more competitive stance in relation to the private sector.

“The country is better served by an experienced and productive federal workforce that is able to adequately provide for the health and well-being of their newborn or newly adopted children,” said Towns. “The federal government is becoming an increasingly aged workforce so we must begin to implement workplace benefits that allow us to be as attractive, if not more attractive, than the private sector. By doing so, we can create the most skilled and effective workforce for the future.”

To view a copy of the Federal Employees Paid Parental Leave Act of 2009, please visit: http://thomas.loc.gov.

SENATE BILL CHALLENGES CONTRACTING PRACTICES

As Members of Congress and President Obama continue to berate the Bush administration for the surge of federal spending on contracting that occurred between 2001 and 2008, Senator Barbara Mikulski (D-Md.) introduced legislation seeking to reduce contracting practices leading to fraud and waste while returning a significant portion of contracted work back into the hands of federal employees. The Correction of Longstanding Errors in Agencies Unsustainable Procurements (CLEAN UP) Act of 2009, S. 924, reflects the Senator’s longstanding opposition to the prevalence of A-76 contracts, which often result in wasted taxpayer dollars, poor federal employee morale, and a reduced ability to meet critical agency missions, according to Mikulski. A-76 contracts state that work be performed in the most efficient and cost-effective manner possible, whether performed by government employees or contractors.

“The Bush Administration made a mess of federal personnel contracting – pushing contracting out even when it wasted taxpayer dollars and undermined the mission of our federal agencies,” Senator Mikulski asserted. “Our federal employees are on the front lines every day, working hard for America and they deserve our respect and appreciation. I will not stop in my fight to level the playing field for federal employees and to protect them against unfair contracting out policies.”

Among the many provisions the bill lays out to tighten regulations regarding the process of awarding contracts is a measure suspending public-private competition for contracts until the director of the Office of Management and Budget, in coordination with the inspectors general of the five largest agencies, concludes all of the bill’s provisions have been implemented. The bulk of the measures contained in Mikulski’s legislation seek to equip federal employees with the tools to compete with private companies for government contracts. The bill requires further examination of which tasks are inherently governmental, which contracts have been awarded without adequate competition and which contracts are not performing in an efficient and effective manner.

The bill further charges agencies with identifying current and future federal employee shortages and developing plans to address any vacancies. This constitutes a critical component of the bill, as roughly one third of the federal workforce is expected to retire in the next four years.

“Federal employees deserve to be treated fairly,” said Mikulski. “This bill will be a major step towards cleaning up the contracting abuses of the last eight years and bringing jobs that were wrongly awarded to private contractors back to where they belong – with our first-rate federal employees.”

The measure has garnered the support of nine cosponsor as of press time, and currently awaits review by the Senate Homeland Security and Governmental Affairs Committee. To view a copy of S.924, please visit: http://thomas.loc.gov.

LAWMAKERS SEEK GREATER OVERSIGHT OF AGENCY PERFORMANCE

In an effort to bolster lawmakers’ ability to oversee program performance and improve the ability of agencies to deliver on projects funded with taxpayer dollars, Members of the House and Senate recently introduced legislation measuring agencies’ execution of operational functions. The Government Efficiency, Effectiveness, and Performance Improvement Act, H.R. 2142, requires agencies to provide lawmakers with greater information on program operations to enhance Congressional oversight, while the Agency Administrative Expenses Reduction Act, S. 948, targets unnecessary administrative expenditures to restructure agency budgets.

Sponsored by Representatives Henry Cuellar (D-Tex.) and Dennis Moore (D-Kan.), H.R. 2142 would require an examination of every federal program at least once every five years to asses how well each program is organized and managed and if the programs are meeting their objectives. Agencies would then submit a corresponding report, accompanying the President’s budget, to Congress for review. Each agency would have 90 days following the report’s submission to construct improvement plans, available for review on the Office of Management and Budget’s Web site, based on the report’s findings. The bill also calls for the creation of “agency performance improvement officers” in charge of supervising agency management procedures.

“In these challenging economic times, it is more important than ever to protect taxpayers against wasteful or irresponsible government spending,” said Congressman Cuellar. "This bill requires a much-needed look at federal programs to ensure that every dollar is spent as effectively and efficiently as possible. It is a key first step on the road toward balanced budgets, and Congressman Moore and I will continue to work to promote fiscal responsibility and rein in wasteful spending."

The Agency Administrative Expenses Reduction Act, introduced by Senator Byron Dorgan (D-N.D.), would mandate agencies list anticipated administrative expenses in their funding requests each year. The goal is to identify areas where cuts may be made.

To view copies of the proposed bills, please visit: http://thomas.loc.gov.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

PRESIDENT RELEASES BUDGET, SSA BENEFICIARY

President Barack Obama released additional details of his fiscal year 2010 Budget on May 7, a proposal totaling $3.4 trillion the President contends prepares America to handle the economic challenges at hand. Although the President emphasized his Administration’s line-by-line scrutiny of federally funded programs and agencies resulting in $17 billion in savings, several agencies, including the Social Security Administration (SSA), were afforded funding increases to better serve the needs of the American public.

“The time has come to usher in a new era - a new era of responsibility in which we act not only to save and create new jobs, but also to lay a new foundation of growth upon which we can renew the promise of America,” Obama stated upon release of his Budget. “This Budget is a first step in that journey. It lays out for the American people the extent of the crisis we inherited, the steps we will take to jumpstart our economy to create new jobs, and our plans to transform our economy for the 21st Century to give our children and grandchildren the fruits of many years of economic growth.”

The Budget provides SSA with $11.6 billion for administrative expenses, constituting a ten percent increase over FY09, to target the agency’s growing workload, including the backlog of claims within the Office of Disability Adjudication and Review. The additional funding is designed to provide the agency with adequate staffing levels and sufficient resources to increase productivity in several key areas. The Budget allows for the hiring of 1,645 new employees, boosting SSA staff levels to a total of 65,114. SSA would also receive $759 million for program integrity efforts, allowing the agency to better monitor the disbursement of benefits.

“By requesting $11.6 billion for Social Security’s administrative expenses, a ten percent increase over the previous year, the President has demonstrated his commitment to help us reduce longstanding backlogs as well as handle the recession-related work that is flooding the agency,” SSA Commissioner Michael Astrue commented upon the Budget’s release. “With this support, we can continue to drive down the hearings backlog, process increasing numbers of retirement and disability claims, modernize our information technology, and improve service in our field offices and teleservice centers.”

As the agency maintains its commitment to eliminating the hearings backlog by 2013, Astrue urged Congress to enact the proposal in order to allow SSA to address areas of critical concern in a timely manner. Astrue also commended the Administration for providing additional funding allowing SSA to continue with the IT modernization process which will play a key role in the delivery of service to social security beneficiaries.

The Federal Managers Association (FMA) has testified on multiple occasions before the House Ways and Means Subcommittee on Social Security to underscore the debilitating impact insufficient funding has on the agency’s ability to deliver the level of service required by the public. Jim Fell, of FMA Chapter 275, provided testimony in March of 2009 to this effect, explaining that the will to succeed is present in SSA, but the lack of resources presents an insurmountable obstacle.

For more information on the President’s Budget, please visit: http://www.whitehouse.gov/omb.

OPM DIRECTOR PROPOSES TELEWORK INITIATIVE

In a hearing before the House Oversight and Government Reform Subcommittee on Federal Workforce, Postal Service, and the District of Columbia held on April 22, Office of Personnel Management (OPM) Director John Berry and Representative Brian Bilbray (R-Cali.) discussed the need for an expansion of telework opportunities to bolster federal recruitment and retention efforts while maximizing agency output. One week later, Berry unveiled a comprehensive strategy for extending this crucial benefit to thousands of federal employees nationwide. Based on five components deemed essential for constructing a viable framework, Berry’s telework proposal seeks to boost employee morale and productivity as it facilitates agencies’ Continuity of Operations Plans, which maintain production during national health or weather emergencies.

“I’m here to put some giddy-yap into telework,” Berry announced. “I was raised in the D.C. metropolitan area, so I know a little something about the traffic congestion that frustrates commuters and saps them of energy even before they get to the office. With a sensible approach to creating model telework programs, thousands more employees will work from home one or two days each week on a regular basis – and thousands fewer will be on the road.”

Drawing on telework legislation introduced in both the House and the Senate, Berry’s initiative hinges on the successful implementation of five components designed to streamline the transition. The plan calls for the creation of a telework advisory group to develop applicable standards for policies. Agencies would then be required to submit their telework procedures to the advisory panel for review. Berry also requested each agency create the position of Telework Managing Officer to monitor the application of telework programs. The plan further requests agencies develop an appeals process to ensure employees are afforded the opportunity to telework if their job description allows for it. The final base component of Berry’s plan entails a renewed commitment to effective training in order to establish an amicable environment between managers and their teleworking employees.

The recent spread of the H1N1 flu virus has illustrated the need for enhanced telework programs across government. Aside from the benefits afforded to participating employees, the benefits associated with the ability to continue delivering services to the American public in times of emergencies provide justification for the renewed attention placed on telework, according to Berry.

“Increased adoption of telework in Federal offices across the country, particularly in major metropolitan areas with large concentrations of employees, would have tremendous economic and social value,” OPM stated following Berry’s announcement. “These programs would enable the uninterrupted delivery of government services if employees were instructed to work from home due to natural disaster or conditions that threaten human health, including concerns related to the spread of influenza.”

To view a copy of Berry’s statement on OPM’s telework initiative, please visit: www.opm.gov.

LONG TERM CARE PREMIUMS RISE

The Office of Personnel Management (OPM) and John Hancock Life and Health Insurance, a fifty percent joint insurer for the Federal Long Term Care Insurance Program since 2002, reached a new seven-year contract, according to an OPM announcement on May 1. The second seven-year contract established between OPM and John Hancock, the new deal may raise employee premiums between five and twenty-five percent as the insurer adjusts to match increases present in other long term insurance programs.

The Federal Long Term Care Insurance Program, administered by Long Term Care Partners, provides federal employees with insurance coverage to assist individuals who require medical aid on a daily basis. The majority of federal employees and annuitants, along with qualified relatives, are eligible for the program, with various restrictions imposed by certain medical conditions. According to OPM, the premium increases featured in the new contract, which will apply to enrollees with automatic compound inflation protection which requires higher initial premiums but eliminates future effects of inflation, are the first such increase the program has seen in the past seven years. OPM also stated that no additional premium increase is expected through at least 2016.

"The Federal Long Term Care Insurance Program is an important benefit that helps enrollees pay for long term care costs that are not covered by health insurance, which can be emotionally and financially devastating for their entire family," remarked OPM Director John Berry. "It is the Federal Government's way to partner with Federal employees to help them and their families plan for the years when they may need assistance with daily activities."

Enrollees will have an opportunity to review their current benefits plan before the premium hikes take effect, allowing individuals to further personalize their options in response to OPM’s announcement. Premiums can remain the same if enrollees opt to dispel with some of the benefits currently received.

Additional options available under the new contract include increased home health care reimbursement, restructured benefit periods, higher daily benefit amounts and augmented payment limits on care provided by family members, according to OPM.

For more information on the Federal Long Term Care Insurance Program, or to view a copy of OPM’s press release, please visit: www.opm.gov.

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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.

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