Federal Managers Association

President Obama is expected to unveil his FY11 budget on February 1. For more information, please visit: www.omb.gov. To view a copy of Perkinson’s letter to the Administration, please visit the Members Only section of FMA’s Web site at: http://fedmanagers.org/membersvc/index.cfm.

FMA GOVERNMENT AFFAIRS DIRECTOR VISITS TEXAS CHAPTERS

On January 21, Federal Managers Association (FMA) Chapter 125, Corpus Christi Army Depot (CCAD), held its monthly chapter meeting on base with special guest speaker Jessica Klement, FMA’s Government Affairs Director. With over 100 federal managers in the audience, including several prospective FMA members, Klement’s visit allowed the chapter to hear a firsthand account of FMA’s recent legislative accomplishments and agenda for 2010.

Not surprisingly, a lively discussion of the National Security Personnel System (NSPS) ensued during Klement’s presentation. FMA members expressed their frustrations with the current transition back to the General Schedule and its potential impact on employee pay. Questions regarding health care reform and its impact on the Federal Employees Health Benefits Program (FEHBP) also came up during the presentation.

After receiving a tour of the depot and its many aircraft repair facilities led by Chapter 125 President Marissa Arredondo and Trustee Annette Cross, Klement and leaders of Chapter 125 met with CCAD Commander Col. Joe Dunaway to discuss Army and FMA business. CCAD is the largest industrial employer in South Texas, employing 5300 civilians and serving as the Army’s largest aircraft repair and maintenance facility.

The following day, Klement met with members of FMA Chapter 252, Fort Bliss Army Base. Organized by FMA Zone 5 President Joe Limon, the monthly chapter meeting drew nearly 20 FMA members. While Klement’s presentation remained the same, those in attendance were very interested in new legislation crediting Federal Employees Retirement System (FERS) employees for unused sick leave at the time of retirement, as well as possible changes to the FEHBP under consideration during the health care reform debate.

While home to more military personnel than civilians, Fort Bliss operations are continuing to expand and civilians are taking on an ever-increasing role in base management. Fort Bliss is a U.S. Army Training and Doctrine Command (TRADOC) installation made up of approximately 1.12 million acres of land in Texas and New Mexico. It is the largest TRADOC installation and the second largest Army installation.

Would you be interested in having a staff member from FMA’s National Office speak at your upcoming meeting or event? If so, contact the office at (703) 683-8700 or info@fedmanagers.org.

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WHAT’S HAPPENING ON CAPITOL HILL?

FEDS, RETIREES INCLUDED IN HEALTH CARE COMPROMISE

Civil servants and federal retirees enrolled in the Federal Employees Health Benefits Program (FEHBP) will enjoy a temporary safeguard against the excise tax placed on insurance plans under Congress’ latest health care proposal, GovExec.com is reporting. The original compromise forged between Members of the House and Senate only applied to union workers outside of the federal government.

As previously detailed in the Washington Report, the Senate health care bill (H.R. 3590) relies on an excise tax targeting “high value” or “Cadillac” health insurance plans to fund the bill’s reforms. H.R. 3590, as originally passed by the Senate, would impose a forty percent excise tax on health care premium costs exceeding $8,500 for individual plans and $23,000 for family coverage. According to GovExec.com, the agreement reached by lawmakers would bump those thresholds to $8,900 and $24,000, respectively, while simultaneously calculating those totals independent of the cost of dental or vision insurance.

The date the excise tax goes into effect for FEHBP participants will also be pushed back from 2013 to 2018 under the deal, according to the federal employee news site. Although they participate in the FEHBP, Members of Congress and political appointees would not receive the tax relief under the negotiated settlement.

Congressman Gerry Connolly (D-Va.), a lead proponent in the movement to include civil servants and federal retirees in the compromise, told the Federal Managers Association (FMA) the collective effort of House Members concerned with the adverse impact the excise tax would have on their public servant constituents led to the push for their inclusion in the legislation. In his eyes, this was a commonsense move.

“There was no doubt in my mind that federal employees and retirees deserved the same treatment as other public employees and it was not fair to leave them out of any agreement to delay the imposition of the health care excise tax proposal advanced by the Senate,” Congressman Connolly told FMA. 

“I recognized the inherent problems in the Senate’s excise tax approach to funding health care reform early last fall when I wrote to House Speaker Pelosi opposing the Senate proposal,” Connolly continued. “At that time, I urged the Speaker to ensure that provisions in any health care reform plan did not adversely affect the FEHB.  I wanted to make sure that the House leadership and the White House understood that federal employees and retirees face the same burdens of rising health care costs that are faced by all Americans.”

For further updates as the debate over health care reform continues, please check back with FMA at: www.fedmanagers.org.

LEGISLATION TAKES AIM AT PHARMACY BENEFIT MANAGERS

During a June 24 hearing examining the role played by Pharmaceutical Benefit Managers (PBMs), contracted by the Federal Employees Health Benefits Program (FEHBP) to negotiate prescription drug prices for FEHBP participants, House Oversight and Government Reform Subcommittee on Federal Workforce, Postal Service and the District of Columbia Chairman Stephen Lynch (D-Mass.) told his audience he would introduce legislation to provide greater oversight of PBMs under federal procurement regulations. Lynch followed through with his promise last week, introducing the FEHBP Prescription Drug Integrity, Transparency, and Cost Savings Act (H.R. 4489) to ensure the relationship between PBMs, drug companies and FEHBP participants upholds the standards of accountability federal employees and American taxpayers deserve.

The FEHBP, unlike other various federal health programs, does not negotiate drug prices for participants; rather, the program relies on PBMs and competition for contracts among drug companies to reduce costs. The complex relationship resulting from this system, Lynch argued during the hearing, creates an environment permitting pharmaceutical companies to charge exorbitant prices while PBMs operate without the degree of oversight necessary to ensure FEHBP participants receive the greatest bang for the buck.

The legislation would provide the Office of Personnel Management (OPM) with significantly greater supervision of FEHBP prescription drug contracts to boost transparency and accountability. The bill would also place several new restrictions on PBM operations: PBMs would no longer be able to switch a patient’s drug prescription without the consent of a physician; PBM reimbursement for drugs would be capped at the Average Manufacture Price; and, new restrictions would be enforced to prevent PBMs from having a controlling interest in a retail pharmacy. Additionally, PBMs who receive rebates, commissions and other monies from drug manufacturers for FEHBP business would have to return 99 percent of those fees.

“In the midst of rising health care costs and a national debate on how best to reduce health care costs, it’s important that we ensure that the FEHBP is providing our federal employees with the best value for their prescriptions,” said Lynch.  “Through strong oversight provisions that allow for alternative prescription drug benefit contracting and pricing for the FEHBP, my legislation will serve to enhance accountability and transparency relating to the FEHBP prescription drug benefit.  Also, the FEHBP Prescription Drug Integrity, Transparency, and Cost Savings Act will safeguard against the potential waste, fraud, and abuse of taxpayer dollars, and most importantly, better ensure that our federal workers and retirees are receiving safe, high-quality, and low-cost prescription drugs.”

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

BILL STRENGTHENING POWER OF GAO PASSES HOUSE

Legislation aimed at equipping the Government Accountability Office (GAO) with greater authority to obtain agency records and interview federal officers and employees to advance the agency’s investigative functions received overwhelming support in the House of Representatives on January 13, passing the chamber through a bipartisan voice vote. Among the provisions contained in the bill is language permitting the Comptroller General to take legal action in federal court if GAO believes federal departments or agencies have unlawfully withheld federal records.

House Committee on Oversight and Government Reform Chairman Edolphus Towns (D-NY), the bill’s sponsor, touted the Government Accountability Office Improvement Act (H.R. 2646) as a critical component of efforts to ensure GAO maintains its ability to operate independently in support of the Legislative Branch’s oversight responsibilities.

“The House of Representatives is committed to strong and effective oversight of government programs so the American people have confidence the workings of their government,” said Towns. “A strong GAO helps Congress carry out our oversight responsibilities.”

The bill specifically addresses the findings of a court case (Walker v. Cheney) held in 2002 that determined the Comptroller General lacked the power to obtain records from then-Vice President Cheney’s energy task force, which GAO was currently investigating. H.R. 2646 explicitly states the Comptroller General may pursue litigation if it is felt GAO cannot conduct its investigation fully due to refusal on the part of agencies, including the White House and Executive Office of the President, to disclose information related to an inquiry. Federal contractors are also held to the same standards under the legislation.

H.R. 2646 would further enable the Comptroller General to administer oaths when conducting investigations “involving potential criminal or ethical violations, or conflicting testimony or assertions concerning sensitive subjects,” according to a committee report accompanying the bill. Towns argued extending the power to the Comptroller General will assist efforts to expeditiously pursue the facts when operating in an audit, investigative or adjudicative role.

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

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

PENTAGON APPOINTS DIRECTOR OF NEW NSPS TRANSITION OFFICE

As the Pentagon continues its efforts to move Department of Defense (DOD) civilian employees out of the National Security Personnel System (NSPS), DOD officials selected John F. James, Jr. to lead the endeavor as Director of the new NSPS Transition Office. In this role, James will oversee the process of returning NSPS employees back to their previous personnel systems, as mandated under the Fiscal Year 2010 National Defense Authorization Act (P.L. 111-84), while also working on designs for an entirely new DOD performance management system.

A 28-year civil servant and member of the Senior Executive Service with vast experience and comprehensive knowledge of civilian personnel systems, James will manage the transition for the roughly 226,000 DOD employees who serve under NSPS. The newly created NSPS Transition Office will replace the NSPS Program Executive Office, which was most recently led by Acting Director Timothy Curry. James previously served as Executive Director of Logistics, Maintenance and Industrial Operations at the Naval Sea Systems Command (NAVSEA ).

"The mention of John James as the NSPS Transition lead is welcome,” Federal Managers Association (FMA) National President Darryl Perkinson commented in a statement after hearing of James’ appointment. “Mr. James has been a guest of the Federal Managers Association nationally and locally at Norfolk Naval Shipyard for key events. His expertise and demeanor have always been well respected in the NAVSEA community. It is assuring that he will lead the transition since his reputation of being professional and fair is well known. I personally have spoken with him on several occasions and been deeply impressed by his knowledge."

A key issue James will have to address is how to move civil servants who previously served under experimental personnel systems out of NSPS. For those who served under experimental systems that no longer exist, it is not clear cut to which new personnel system they will be assigned. Additionally, a provision in P.L. 111-84 explicitly states no employee will lose pay as a result of the transition, a point FMA has emphasized through letters delivered to DOD officials and Members of Congress. Many DOD employees previously assigned to the General Schedule system received raises while under NSPS that would place them in a higher grade than their original assignment. James must determine how to preserve these employees’ pay while ensuring their skill sets match their assigned grades.

“As Mr. James proceeds with the transition process, FMA will be ready to assist his efforts in whatever capacity is necessary,” stated Perkinson. “FMA has been called on by Congress and the Department of Defense on multiple occasions to provide our insight on the system, as we represent the interests of managers who were tasked with implementing the program. I look forward to working with Mr. James to ensure the process is smooth and that all federal employees are protected.”

For more information on John F. James, Jr., please visit: www.cpms.osd.mil/nsps.

REPORT DETAILS POSITIVES, NEGATIVES OF PRESIDENTIAL TRANSITION

A report released by the Partnership for Public Service (Partnership) on January 13 documenting the presidential transition from early 2008 through President Obama’s first year in office found that failure to establish and implement a framework to guide the process has left the country “vulnerable.” According to the report, Ready to Govern: Improving the Presidential Transition, the 2008/2009 transition, while considered a relative success compared to previous administration transitions, failed to adequately prepare Obama to govern the nation immediately upon entering office.

“Hope and luck are not a strategy,” Partnership president Max Stier asserted. “During such volatile times with countless national security threats, economic woes and the increased demand on our government, we need to dramatically overhaul our transition system so new presidents can quickly get their teams in place.”

The Partnership relied on interviews with officials in both the Obama and McCain campaigns tasked with easing the transition, along with members of the Bush administration, to examine the effectiveness of the transition efforts. Based on the findings, the Partnership’s report provides several key recommendations to streamline the process in the future. Included among the Partnership’s recommendations is a call for presidential campaigns to prepare for the transition process earlier through the use of congressionally allocated funding to assist planning and assignment of a transition director following their nominating conventions.

The report also recommends Congress and the Administration work to decrease the number of political appointee positions requiring Senate confirmation, which currently stands at roughly 1,140, according to the Partnership. Congress and the White House should also work together to establish an appointment calendar with the goal of confirming at least 500 key officials within six months of the new administration entering office, the report states. Reaching that mark currently takes over one year.

According to Stier, although the most recent transition achieved many objectives, Congress and the White House must work to ensure future transitions build on past successes to continue towards the goal of establishing a fully functional administration from day one.

“While the Bush White House and Obama team did a remarkable job on the 2008/2009 transition, the process must be institutionalized so it isn’t dependent on personality,” explained Stier. “Doing it right will require nothing less than a cultural shift so that early planning is imperative.”

To view a copy of the report or to learn more about the Partnership, please visit: www.ourpublicservice.org.

OPM AND FEEA REACH OUT TO FEDS FOR HAITI RELIEF EFFORT

In response to the devastation caused by the massive earthquake which hit Haiti on January 12, Office of Personnel Management (OPM) Director John Berry has authorized federal agency and department heads to solicit one-time cash and check donations from federal employees to assist relief efforts underway on the island nation. OPM’s authorization allows agencies and departments to bypass standard Combined Federal Campaign (CFC) procedures to solicit donations.

"As we join President Obama and millions of Americans in mourning those who have perished and praying for the survivors, we can also help save lives in Haiti in the coming days and weeks," said Berry in his January 15 letter detailing the donation drive. "Federal workers have always shown their generosity when disaster strikes, and this time is no different. To make it easier for Federal workers to give, I am authorizing department and agency heads to allow a special solicitation of Federal employees at the workplace to support Haiti in its time of extraordinary need."

While OPM encourages civil servants to contribute to the relief efforts through their agencies, federal employees may also donate directly to charitable organizations engaged in the effort independent of their involvement in the CFC. If federal employees would like to make a donation but no special solicitations are available in their workplace, OPM suggests contacting relief organizations directly.

If you would like more information on which organizations are currently involved in the Haiti relief efforts, please visit the U.S. Agency for International Development (USAID) Web site at http://www.usaid.gov/helphaiti.

The Federal Employee Education and Assistance Fund (FEEA), a longtime partner of the Federal Managers Association, also announced that donations may be made to the FEEA Natural Disaster Fund, which will provide assistance to federal employees serving in Haiti who were affected by the earthquake. If you would like to contribute to the FEEA Natural Disaster Fund, or if you would like more information on the effort, please visit: www.feea.org or call 1-800-323-4140.

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GET INVOLVED AT THESE EVENTS!

REGISTER TODAY FOR FMA’S 72nd ANNUAL NATIONAL CONVENTION!
Sign Up Now!

Registration is still available for the Federal Managers Association’s (FMA) 72nd annual National Convention and Management Training Seminar. Held March 14-17, 2010, in Arlington, Virginia, the Convention will feature a mix of association business, management training and FMA’s annual lobbying day, Day on the Hill. Office of Personnel Management Director John Berry will kick off the training day, which will feature four panels of experts covering topics from the recent changes to the federal government’s Thrift Savings Plan to strategies to enhance operations in the workplace.

For more information or to register, please visit: http://www.fedmanagers.org/public/events.cfm. If you have any questions regarding the Convention, please contact FMA at (703) 683-8700.

HUMAN CAPITAL MANAGEMENT: DEFENSE (HCMD) 2010
February 16-19, 2010
Sheraton National Hotel, Arlington, VA

Human capital management is crucial to the success of our national defense. Operating in a time of uncertainty, human resources managers and practitioners throughout the Department of Defense (DOD) community are making decisions today that will significantly impact DOD's ability to meet the challenges ahead. How is the new Administration, the changing global security landscape and the current economy impacting human capital management for Defense today and tomorrow? At HCMD 2010, you will hear in-depth presentations from the top strategy setters and policy makers on current and future Military and Civilian Human Capital Initiatives, as well as real life success stories on their implementation at all levels throughout DOD. FMA members will receive a $200 discount for attending. Please use booking code 10665004XX66CL.

For more information, please visit: http://www.wbresearch.com/hcmdusa/lpfma.aspx?mac=10665004XX66BA&cm_mmc=External-_-10665.004-_-Federal%20Managers%20Association-_-Homepage.

DEFENSE FINANCE 2010
March 25-26, 2010
Hilton Alexandria Mark Center, Alexandria, VA

Defense Finance has become the meeting place for Department of Defense financial experts to present updates, share lessons learned and test new ideas for improving and transforming defense finance business operations in support of the war fighter. As you continue the struggle to successfully transform your financial operations, the annual Defense Finance conference is a trusted resource you can depend on to arm you with the tools you need to achieve your goals. Register now and FMA members will receive a $200 discount with booking code 10479XQ99CL.

For more information, please visit: http://www.wbresearch.com/defensefinanceusa/.

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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 and 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 and Roth, P.C. SBR concentrates its law practice on the representation of Federal employees, with a special emphasis on the representation of executives and managers. SBR 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

Washington Report Archives