Federal Managers Association

For more information on Patricia Niehaus and the Federal Managers Association, please visit FMA’s Web site: www.fedmanagers.org.

FMA TESTIMONY CHALLENGES TAX DELINQUENCY BILL

Federal Managers Association (FMA) National Secretary Richard Oppedisano presented testimony on March 17 before the House Oversight and Government Reform Subcommittee on the Federal Workforce, Postal Service and the District of Columbia to discuss legislation introduced by Ranking Member Jason Chaffetz (R-Utah) that would bar federal employees facing “seriously delinquent tax debt” from serving the government. Expressing concern over both the intent and practical application of the bill, H.R. 4735, Oppedisano urged the Subcommittee to hold federal employees to the same standards as the rest of the general public while considering other means to recoup payments owed by tax-delinquent civil servants.

According to the Internal Revenue Service (IRS), federal employees, federal retirees, active duty military and retired military owed a cumulative $3 billion in unpaid taxes in 2008. Removing active duty military employees and all retirees from the equation, current active federal employees, those targeted under the bill, accounted for $962 million in unpaid taxes, 32 percent of the total amount owed. Approximately 97,000 employees, less than five percent of the active federal workforce, contributed to the figure.

Criticized by several Subcommittee members, including Chairman Stephen Lynch (D-Mass.) and Rep. Gerry Connolly (D-Va.), as remedy to a problem that does not exist to the extent advertised, H.R. 4735 would instruct agencies to both fire tax delinquent feds and discard applicants found to be delinquent. Individuals deemed “seriously delinquent,” which means those facing a lien from the IRS, would be subject to the bill.

“It is our belief that federal employees should be held to the same standards as the rest of the American population, receiving no special treatment while also avoiding the bulls’-eye that so often falls on their back,” FMA’s Oppedisano told the Subcommittee. “There are laws currently in place that deal with delinquent taxpayers, and we should first work to ensure that these laws are enforced judiciously across the board.”

Oppedisano and members of the Subcommittee agreed that the complexity of the tax system, along with the fact IRS is more likely to recoup taxes owed through established channels such as the garnishing of wages, renders H.R. 4735 impractical.

“We believe this legislation seeks to create a system where there is always an easy answer even though individual cases requiring unique exemptions exist,” Oppedisano continued. “Our tax system does not exist in a vacuum. IRS agents are successful because they are trained to evaluate each case based on its own set of circumstances. While there are certainly individuals who knowingly refuse to pay taxes, this legislation may impact a greater audience than intended.”

The legislation remains under the control of the Subcommittee, and no word has been issued regarding future consideration. For more information on the hearing, please visit: http://oversight.house.gov.

ASSOCIATION’S NATIONAL CONVENTION HITS THE MARK

Over 100 members of the Federal Managers Association (FMA) joined the Association in Washington, D.C. from March 14 through the 17 to take part in FMA’s 72nd annual National Convention and Management Training Seminar. Structured around the theme, Dynamically Leading the Government of Today into Tomorrow, the Convention offered delegates an opportunity to engage in constructive training sessions, meet with Members of Congress and their staff on Capitol Hill, and play a key role in crafting the Association’s future agenda.

Focusing primarily on internal FMA business during the first full day, Convention delegates and the Association’s National Officers discussed a wide range of issues impacting FMA’s projected direction and growth. In particular, FMA’s National Secretary Richard Oppedisano used the gathering as an opportunity to detail and solicit comments on the Association’s recruitment and reorganization plans. In addition to the variety of topics covered by FMA’s National Officers, the Association’s Government Affairs Director Jessica Klement and Government Affairs Representative Karl Gruss recapped the extremely successful legislative year enjoyed by the Association and the entire federal community, largely focusing on the accomplishments achieved in the passage of the Fiscal Year 2010 National Defense Authorization Bill (P.L. 111-84). The pair also briefed delegates on FMA’s legislative agenda moving forward in the second session of the 111th Congress.

Congressman Stephen Lynch (D-Mass.), Chairman of the House Oversight and Government Reform Subcommittee on the Federal Workforce, the Postal Service, and the District of Columbia, provided the keynote address on the opening day, highlighting the critical role played by federal managers during this time of adversity. With several public figures currently engaged in an assault on the value of the civil service, Chairman Lynch assured his audience that he is committed, along with many of his colleagues and those in the Administration, to combating these negative perceptions head-on to inform the public of the vital role played by federal employees.

Frank Tesoriero, Director of Submarine Maintenance, Overhaul and Repair for the Naval Sea Systems Command (NAVSEA) 04XU, also joined FMA during the Convention’s Membership Luncheon to discuss his work and vision for the future success of NAVSEA operations. Delegates concluded the first day with the consideration of several internal resolutions followed by an informal gathering in a hospitality room sponsored by all FMA Zones.

Office of Personnel Management (OPM) Director John Berry launched the Association’s management training seminar on March 16 with a rousing keynote address on the steps OPM is taking to improve the efficacy of the federal workforce. Before diving into the myriad of reforms his agency is currently tackling, Berry recognized FMA’s Immediate-Past President Darryl Perkinson’s contributions and commitment to the federal community by bestowing upon him the OPM Teddy Roosevelt Award, the agency’s highest honor. Transitioning back to the work conducted by the agency, Berry outlined his multi-phase approach to hiring reform, the steps he is taking to improve federal employees’ work/life balance, and the renewed emphasis on holding individuals accountable for performance in the workplace.

FMA’s training day consisted of four panels featuring experts in fields relating to leadership in government federal financial management. Mark and William Keen, a father-son team of Certified Financial Planners representing Bennett Financial Advisors and the Keen Insight Group, detailed the recent changes to the federal employees Thrift Savings Plan included in the legislation signed into law last fall during the first panel. Robin S. Wink, Esq., a principal of Rudman Wink Associates, followed the Keens' presentation with a look at the value of promoting leadership accountability to improve individual and collective performance.

The Association’s annual awards luncheon, keynoted by FederalNewsRadio anchor and longtime community friend Mike Causey, separated the training day into two segments and allowed FMA to recognize individuals and chapters that made significant strides over the last year to advance Association’s mission.

Before turning over his gavel, FMA National President Darryl Perkinson and FMA National Secretary Dick Oppedisano honored three recipients with the Association’s most prestigious awards:

• The President’s Award for Outstanding Chapter – Chapter 14, led by Chapter President Tom Butler;
• The O’Dell Green Award for Outstanding General Executive Board Member – Dick Oppedisano, National Secretary; and,
• The Gil Guidry winner for Outstanding Chapter President – Andy Anderson, Chapter 3.

Tara Carpenter, PhD., Vice President of Human Capital for Federal Management Partners, Inc. and Kelly Cano, PHR, Human Capital Specialist in the Department of Navy’s Strategic Systems Command, kicked-off the second half of the training day by instructing attendees how and why to incorporate succession planning into their work as frontline managers. A.J. Robinson, Ph.D., Founder and CEO of Symphonic Strategies, rounded out the training panelists, discussing the role and value of strategic leadership in a constantly evolving work environment.

Wednesday, March 17, afforded Convention delegates the opportunity to meet with their Members of Congress and staff during FMA’s annual lobbying day, Day on the Hill. The Association’s national advocacy day allowed members to engage lawmakers on issues of importance to FMA, both on a national and local level. The Association’s National Convention wrapped up with a reception hosted by FMA-PAC, a final event to allow delegates to gather one last time and reflect on the event.

For more information on FMA please visit the Association’s Web site: www.fedmanagers.org.

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WHAT’S HAPPENING ON CAPITOL HILL?

PRESIDENT SIGNS HEALTH CARE BILL, FEDS NOT IMMUNE TO EFFECTS

Health care legislation signed into law by the President on March 23 contains several measures impacting health insurance coverage for members of the federal workforce and their families enrolled in the Federal Employees Health Benefits Plan (FEHBP). Most notably, the health care package institutes an excise tax targeting high value health insurance plans to fund the bill’s reforms, though the thresholds are higher than original proposals and the implementation date has been pushed back significantly.

The new law (P.L. 111-148) will impose a forty percent excise tax on annual health care premium costs exceeding $10,200 for individual coverage and $27,500 for families. These thresholds will be calculated independent of the cost of dental or vision insurance, and the tax will first take hold in 2018. The thresholds are also subject to adjustment, potentially rising based on inflation over the next eight years.

The law also includes a provision which would limit the amount of pre-tax dollars federal employees could deposit into a flexible spending account (FSA) at $2,500. Contributions to FSAs, which civil servants use to cover many medical expenses out-of-pocket, were previously capped at $5,000. The reduction will first take effect in 2013.

On January 1, 2011, insurance providers in the FEHBP will be required to extend their coverage of dependents up to the age of 26. The Office of Personnel Management (OPM) said it is in the process of taking the necessary actions to provide for this additional coverage and plans on posting changes on its Web site to provide participants ample time to determine how the new law impacts their coverage options during the Open Season beginning in November.

OPM will also take the lead on administering state-based health exchanges for the uninsured. Members of the House of Representatives and the Senate clashed over the impact this would have on the agency’s ability to maintain its focus on managing the federal workforce. The new law directs funding during the appropriations process to cover the additional costs for OPM, but the total impact of the new responsibilities on OPM’s core mission will not be realized until further down the road.

As greater details surrounding the enacted health care reform package emerge, please visit FMA’s Web site for updates: www.fedmanagers.org.

SUPPORT GROWS FOR BILL ENABLING FEDS TO DEPOSIT LEAVE IN TSP

Members of the House Oversight and Government Reform Subcommittee on the Federal Workforce, Postal Service, and the District of Columbia moved one step closer to approving bi-partisan legislation that would allow federal and postal employees to invest the cash-value of their unused annual leave in their Thrift Savings Plan (TSP) accounts, supporting the measure during a mark-up session on March 24. The benefit would also extend to members of the Armed Services.

Sponsored by Subcommittee Chairman Stephen Lynch (D-Mass.) and Ranking Member Jason Chaffetz (R-Utah), H.R. 4865 would enable federal employees under the age of 50 to deposit their unused annual leave into their TSP accounts provided they do not exceed the $16,500 limit on annual contributions. Federal employees 50 years or older would be able to follow suit, with their contribution ceiling capped at $22,000. The option would not be applied to unused sick leave, which federal employees are now able to add to their length of service for retirement annuity calculations.

“This legislation simply provides these workers with another way to boost their Thrift Savings Plan accounts following a difficult economic period, where many Americans experienced plummeting 401(k) and TSP balances,” said Lynch. “I believe it is important that we act today to keep the Thrift Savings Plan up to date in a way that is comparable to the private sector.”

Federal employees would still retain the option to take a one-time lump sum payment for their unused annual leave. In September 2009, the Internal Revenue Service provided private sector employers offering pension plans the option to allow their employees to roll their unused leave into their 401(k) plans. Legislation is required, however, to extend this flexibility to federal employees. The bill currently awaits consideration by the full House Oversight and Government Reform Committee.

For more information on H.R. 4865, please visit: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4865:.

TELEWORK, PRESCRIPTION DRUG OVERSIGHT MEASURES ADVANCE

Legislation requiring agencies to expand telework opportunities available to employees and a bill establishing greater oversight of prescription drug price negotiations under the Federal Employees Health Benefits Plan (FEHBP) continue to receive support in the House of Representatives. Members of the House Oversight and Government Reform Subcommittee on the Federal Workforce, Postal Service, and the District of Columbia voted on March 24 in support of the two measures, placing them in the control of the full Committee.

The Telework Improvements Act, H.R. 1722, introduced by Representative John Sarbanes (D-Md.), would mandate agencies permit workers to telework at least twenty percent of any two-week period unless it can be determined that their job descriptions require them to report to their primary office. The legislation would also require that each agency designate a Telework Managing Officer to act as a liaison between teleworking employees and their supervisors.

Members of the Subcommittee agreed on the importance of augmenting the ability of agencies to provide telework opportunities to employees, citing the cost savings generated by the workplace flexibility tool during the recent snowstorms in Washington, D.C. and the potential for even greater savings through enhanced utilization. Congressman Brian Bilbray (R-Cali.) said he supports the bill primarily on the positive environmental impact the legislation will have, removing thousands of cars from the roads each day. Congressman Gerry Connolly (D-Va.), promoted the value of the bill based on its projected impact on the government’s ability to attract the next generation of civil servants.

“Telework is an increasingly important part of the federal workforce,” stated Connolly. “[T]his Committee understands the challenge of recruiting and retaining employees for the future workforce. Six hundred thousand federal workers are eligible for retirement over the next decade. Having more flexibility in the workplace is essential.”

The Subcommittee also favorably reported H.R. 4489, the FEHBP Prescription Drug Integrity, Transparency, and Cost Savings Act, introduced by Chairman Stephen Lynch (D-Mass.). The bill would shed greater light on the role played by Pharmacy Benefit Managers (PBMs) and the process they take part in to negotiate prescription drug prices. Chairman Lynch described the process of researching the current PBM structure and developing legislation to boost transparency and accountability as one of the most convoluted procedures he has experienced.

While critics of the legislation argued that increased disclosure of negotiated drug prices could prove a disincentive for PBMs and drug providers to negotiate the lowest price, Chairman Lynch asserted the bill would finally allow the federal government to leverage the power of the 9 million individuals who participate in the FEHBP to demand a fair price.

The full House Oversight and Government Reform Committee has yet to place these measures on its legislative calendar. For more information, please visit: http://thomas.loc.gov.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

FMA, TELEWORK EXCHANGE HIGHLIGHT DISABILITY HIRING CHALLENGE

While the vast majority of federal employees believe their agencies are committed to hiring employees with disabilities, only half of those polled believe their agencies have the capacity to follow through on this pledge, according to a study conducted by the Telework Exchange and the Federal Managers Association (FMA). Released on March 29, the final report on the study, entitled, “Unnecessary Barriers,” further reveals federal managers and supervisors lack the training necessary to effectively utilize the skills offered by disabled employees, leading to poor retention rates.

According to the study, 71 percent of federal employees agree their agencies are dedicated to hiring a greater number of disabled workers, but technological and structural impediments hamper agencies’ abilities to realize this goal. Eighty-four percent of those polled said their departments provided practical accommodations for disabled employees, but those accommodations often do not include telework options, job-share opportunities or other tools that can improve both a disabled worker’s experience and productivity while employed by the federal government.

Though agencies may want to increase the number of disabled workers on staff, managers and supervisors require greater education on the rules and regulations governing the hiring of Americans with disabilities, according to the study. FMA and the Telework Exchange found that 36 percent of managers and supervisors involved in the hiring process were unfamiliar with Schedule A, a special disability hiring authority, and 58 percent were unfamiliar with Executive Order 13163, designed to increase the percentage of disabled employees in the workforce. Inadequate training on the effective management and utilization of employees who may require additional support compounds the problem, with the study revealing 40 percent of managers report receiving insufficient training on managing workers with disabilities. Forty-five percent of managers also reported receiving inadequate training on retention strategies.

“Managers alone cannot create a work environment that accommodates workers with disabilities,” said FMA Executive Director Todd Wells. “Many are doing their part and FMA commends them for their efforts. What is needed is more access to training that is consistent, and an investment in technology that will allow secure work from distant locations by the best person for the job, regardless of disabilities.”

The results of the study will be a focal point of discussions held during the Spring 2010 Telework Exchange Town Hall Meeting on April 8 in Washington, D.C. Participants, including FMA National President Patricia Niehaus, will discuss methods to improve federal employment opportunities available to disabled Americans. Federal employees may attend the conference free of charge.

For more information on the Spring 2010 Telework Exchange Town Hall Meeting, please visit: https://www.teleworkexchange.com/townhallmeeting/2010-spring-attendee-reg.asp.

OPM UNVEILS SIX-YEAR STRATEGIC PLAN

Office of Personnel Management (OPM) Director John Berry released his agency’s six-year strategic plan on March 12, detailing OPM’s mission and vision through 2015. Committed to transforming the federal government into the model employer and OPM its model agency, Berry reinforced his belief that the nation’s ultimate success hinges largely on the ability of the civil service to attract and retain the best and the brightest to overcome the challenges at hand.

“Our people are our most important tool in facing any challenge, and we forget that at our peril,” wrote Berry. “They are not merely a part of the equation, like capital or technology. They ARE the equation.”

Focused on four fundamental strategic goals covering a variety of issues, OPM’s strategic plan espouses a merit system principles-based approach to civil service reform, valuing integrity and innovation while holding individuals accountable for their actions. Restructuring the federal hiring process tops Berry’s list of initiatives OPM will tackle, with increased attention centered on improving diversity, veterans’ preference objectives, and equipping agencies with the tools to determine the suitability of prospective job candidates. Strengthening investments in the men and women of the civil service, through enhanced training, establishment of flexible benefits and the promotion of work/life balance, will also stand among OPM’s top priorities over the next six years, Berry maintained.

In addition, the strategy paper outlines new efforts to hold federal agencies accountable for results, requiring OPM to work with agency leaders to improve human resource management and foster the growth of individuals who will shape the future direction of the civil service. Last but not least among Berry’s four strategic goals is the modernization of federal pay and retirement processing systems. In terms of pay reform, OPM will devote increased attention to developing a system that supports recruitment and retention efforts while engaging employees in the creation of programs that enhance performance recognition. Federal retirees over the next six years can expect a more streamlined benefits adjudication process to promote the timely delivery of needed services, according to OPM’s plan.

OPM has also established benchmarks to track progress on several near-term initiatives focusing on performance through fiscal year 2011. Included among these goals is increasing the number of telework-eligible federal employees by fifty percent, achieving at least eighty percent compliance rate among departments and agencies implementing hiring reforms, and reducing the agency’s receipt of incomplete retirement records by thirty-five percent. Each of these short-range goals tie to long-term performance initiatives included in the agency’s six-year strategic plan.

To view a copy of OPM’s plan, please visit: http://www.opm.gov/strategicplan.

OPM FORMS TASK GROUP TO TAKE ON FEDERAL/PRIVATE PAY GAP

In response to the increased attention placed on the pay gap between federal employees and those in the private sector, Office of Personnel Management (OPM) Director John Berry announced creation of a task group to separate fact from fiction when it comes to salary comparisons. Charged with reevaluating pay data to shed greater light on the work performed by public and private sector employees in comparable positions, the task group’s goal is to objectively determine the extent of compensatory gaps in the nation’s workforce.

Ranking Member Susan Collins (R-Me.) raised the issue during a Senate Appropriations Financial Services and General Government Subcommittee hearing addressing OPM’s proposed fiscal year 2011 budget, expressing concern over the allegations voiced by constituents, colleagues and television commentators that federal employee pay far exceeds that in the private sector. Collins turned to Director Berry and OPM in hopes of developing concrete answers to these inquiries.

“There’s a lot of misinformation out there right now,” Berry explained. “Many of these [statements in the media] that quote and compare the average federal salary to the average private sector salary are not really comparing apples to apples. The federal government fifty years ago used to be largely a blue-collar operation. Today, it’s significantly a white-collar operation with very high-skilled employment positions.”

Berry told the Subcommittee that the Bureau of Labor Statistics (BLS) used to track data that painted a clearer picture of the pay gap, which largely found federal employees fell behind their private sector counterparts in salary for similar positions. BLS does not collect that data any longer, Berry continued, leading him to create the task group to wrestle with the formula to “defend with ironclad validity” exactly where the pay gap stands based on the data.

“You’re not comparing like jobs with like jobs,” Berry stated, referring to the observations of average federal versus private sector pay. “And so whenever you do that, whenever you try to compare like jobs with like jobs and put the level of responsibility with it and the level of education required, federal jobs are behind the private sector.”

Director Berry acknowledged outliers may exist which should be addressed. In instances where federal pay for similar occupations with similar qualifications exceeds that of the private sector significantly, federal pay may have to be adjusted down. However, when you look at most true job-to-job comparisons, measuring the pay gap while taking into account experience and education, “that number evaporates instantly,” said Berry. Citing nurses as an example, Berry said that while federally employed nurses may earn more than their private sector counterparts on average, only one-third of private sector nurses have a bachelor’s degree, while over half of federally employed nurses earned a degree.

“I think you need to respond to that, because that is gaining currency, and it would be helpful to have in writing your analysis and response to that,” Collins said regarding the overall pay issue. “You’ve raised a number of excellent points, but I don’t think those points are getting out there, and I’m starting to hear this more and more often.”

A significant imbalance between federal and private sector pay favoring federal employees would represent a major problem in this time of budget constraints, continued Collins. If there is no imbalance, the government needs to explain that better, Collins concluded.

For more information on the hearing and Director Berry’s discussion, please visit: http://appropriations.senate.gov.

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GET INVOLVED AT THESE EVENTS!

TELEWORK SPRING TOWN HALL MEETING – FREE TO FEDS!
April 8, 2010
Ronald Reagan Building and International Trade Center, Washington, D.C.

The Telework Exchange will host its Spring Town Hall Meeting on Thursday, April 8, 2010. The meeting will focus on how telework fits into the bigger picture for federal government and how to move the participation needle beyond 10 percent. Consisting of two tracks, the event program will explore telework policies, performance, management, and technology. Join agency executives, program managers, telework coordinators, industry partners, and affiliated organizations – all working collectively to achieve demonstrable progress in this area.

To register or for more information, visit: https://www.teleworkexchange.com/townhallmeeting/2010-spring-attendee-reg.asp

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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.

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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.

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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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