Federal Managers Association

For more information on this year’s event, please visit FMA’s Web site and click on the PSRW image on the front page: www.fedmanagers.org.

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

WHAT’S HAPPENING ON CAPITOL HILL?

FULL COMMITTEE APPROVES TELEWORK, ANNUITIES BILLS

Legislation aimed at increasing telework across the federal government and a measure enabling federal employees to deposit the value of their unused annual leave into their Thrift Savings Plan (TSP) accounts advanced through the House Oversight and Government Reform Committee during an April 14 markup.

The Committee considered and approved a string of amendments aimed at strengthening oversight of telework eligibility and agency compliance during consideration of the Telework Improvements Act (H.R. 1722), introduced by Representative John Sarbanes (D-Md.). The measure 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 original legislation required establishment of a Telework Managing Officer within each agency to act as a liaison between teleworking employees and their supervisors, but the Committee approved an amendment introduced by Rep. Jason Chaffetz (R-Utah) that would leave creation of this new position to the discretion of each agency. Chaffetz argued small agencies might not require a full-time position to meet this need.

The Committee also issued support for legislation allowing federal and postal employees invest the cash-value of their unused annual leave in their TSP accounts, as long as those under 50 years old do not exceed the $16,500 limit on annual contributions and those over 50 stay under a $22,000 ceiling. The measure (H.R. 4865), sponsored by Rep. Stephen Lynch (D-Mass.) and Rep. Chaffetz, garnered little discussion during the markup, with Members in attendance signaling unanimous support for the bill.

Both measures now move to the full House of Representatives for consideration. For more information, please visit: http://thomas.loc.gov.

OPM DETAILS DEPLOYED CIVILIAN COMPENSATION OVERHAUL

The Office of Personnel Management (OPM) is poised to send a proposal to Congress that would identify and correct gaps in compensation and benefits received by civil servants operating in combat zones, OPM Director John Berry told members of the Senate Homeland Security and Governmental Affairs Subcommittee on the Oversight of Government Management during an April 14 hearing. The proposal would also create a standard government-wide approach to the allocation of pay and benefits to these deployed civilians.

Subcommittee Chairman Daniel Akaka’s (D-Haw.) discussions with Berry focused on OPM efforts stemming from a June 2009 Government Accountability Office (GAO) review of benefits and compensation afforded to civil servants employed in combat zones. GAO’s report determined OPM should take the helm on an interagency effort to address a series of concerns relating to deployed employees’ pay, primarily focused on ensuring civilians receive appropriate and comparable pay and medical benefits.

“Deployed civilians are essential to the Government’s mission, and the pay and benefits they receive must reflect the vital services they provide,” Berry told the Subcommittee. “We at OPM are committed to recruiting, retaining, and honoring a world-class workforce to serve the American people. This commitment includes doing all we can to help ensure deployed civilians receive fair and accurate compensation and benefits in a timely way.”

OPM’s proposal would put the onus on the Secretary of State, in coordination with the Secretary of Defense, to designate areas as zones of armed conflict, which would set a baseline for the allocation of pay and benefits to deployed civilians. The proposal would also create a new subchapter within Title 5 of the U.S. Code establishing a central source for information on benefits agencies could provide to employees operating in a designated zone of armed conflict. Additionally, Berry informed the Subcommittee, his agency’s draft bill would require that all civilians in these designated conflict zones receive a locality adjustment equal to or greater than that received by General Schedule workers in Washington, D.C.

“If the employee’s official worksite were in an area for which a locality pay percentage higher than that for Washington, DC, was in effect, he or she would receive the higher locality pay percentage,” Berry affirmed. “We believe extending locality pay to these deployed civilians will go a long way toward placing their compensation on a more equitable footing.”

While Berry did not say when the draft proposal would reach Congress’ hands, he assured Chairman Akaka that “this effort remains one of OPM’s top priorities, because we believe it is vital to do all that we can to ensure that civilian employees who put their lives on the line for the American people are appropriately rewarded and supported by the federal government as their employer.”

For more information on the hearing, please visit: http://hsgac.senate.gov.

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

WHAT’S NEW IN THE EXECUTIVE BRANCH?

NSPS OFFICE CONTINUES WITH AGGRESSIVE TRANSITION SCHEDULE

The National Security Personnel System (NSPS) transition team expects to convert over 103,000 employees back into the General Schedule (GS) by the end of June, according to recent projections posted to the NSPS Web site. By the end of the fiscal year, NSPS Transition Office Director John James hopes the total number of NSPS employees converted back to their previous personnel systems will jump to nearly 170,000 employees, representing seventy-five percent of all employees that began the year under the pay-for-performance system.

As of April 15, 6,918 Department of Defense (DOD) employees have transitioned out of NSPS. James said his office is “moving prudently and expeditiously” and “working hard to ensure that we are properly classifying positions from NSPS to the General Schedule system.” James reiterated that GS classification is not based on pay, but rather on the work conducted by each individual.

“When an employee transitions out of NSPS, the classification of his or her position into the General Schedule system is based on duties and responsibilities,” explained James. “In accordance with NDAA 2010, no employee will lose pay in the transition from NSPS to GS.”

Civil servants in the Army are expected to constitute the bulk of those converted in May and June, followed by Navy employees. When the conversion process is completed at the close of calendar year 2011, as required by law, James expects seventy-five percent of employees formerly under NSPS will fall under the General Schedule. This group represents those slated for transition by the end of FY10.The NSPS Transition Office will convert the remaining twenty-five percent thereafter. The majority of these employees will return to an Acquisition Demonstration Project or the Science and Technology Reinvention Laboratories Demonstration Project. Employees in the Health Care field and those in installations undergoing Base Realignment and Closure will also transition after the close of FY10.

Employees are encouraged to consult their Human Resources departments routinely throughout the process to in the loop and on top of emerging developments.

“You can’t over communicate when it comes to a major change,” said James. “If you have concerns about your individual transition, it is important to take a proactive approach. The NSPS Transition Office will continue to keep the workforce informed on transition decisions and policies every step of the way.”

For the latest news on the NSPS conversion, please visit: http://www.cpms.osd.mil/nsps, or visit the Federal Managers Association’s Web site: www.fedmanagers.org.

OPM ISSUES LOCALITY PAY EXTENSION GUIDANCE

The Office of Personnel Management (OPM) released guidance for federal agencies on April 9 detailing agency and employee responsibilities associated with the extension of locality pay to federal employees working in Alaska, Hawaii and the U.S. Territories. With roughly 41,000 federal employees working outside the contiguous United States, OPM’s Benefits Administration Letter clarifies the process of transitioning these individuals from the cost of living allowances (COLA) they currently receive to locality pay.

Included in the 2010 National Defense Authorization Act (P.L. 111-84), the locality pay extension legislation phases-out the COLA and phases-in locality pay over a three year period combined with an annuity buy-in aimed at stabilizing the current retirement eligible workforce. Since locality pay is credited toward basic pay for retirement purposes while the COLA was not, federal employees serving in non-foreign areas will now be on par with their stateside peers in terms of retirement benefits.

OPM’s instructions specifically detail the steps employees and agencies must adhere to if an employee in a non-foreign area seeks to retire between January 3, 2010, when the conversion to locality pay began, and December 31, 2012, when the process will conclude. Under P.L. 111-84, employees who retire within this time frame are eligible to apply a portion of the COLA they receive towards their base pay. According to OPM, employees must submit a request to their agency detailing their intent to allocate a portion of their COLA to base pay at the time of retirement. Employees who opt to do so must pay retirement deductions on the amount of COLA applied to basic pay. Agencies must also pay employer contributions on the figure converted from COLA to basic pay.

OPM’s guidance instructs agency benefits staff to communicate this option to all eligible employees, providing them with annuity estimates to demonstrate the effects of higher basic pay rates on their pensions. The Benefits Administration Letter also provides examples of employees under both the Civil Service Retirement System and the Federal Employees Retirement System to further exhibit the impact of utilizing this available option.

Employees are encouraged to consult their agency benefits staff to ensure they do not miss an opportunity to bolster their retirement annuities. To view a copy of OPM’s guidance, please visit: http://www.opm.gov/retire/pubs/bals/2010/10-102.pdf.

SES ENCOUNTERING RECRUITING IMPEDIMENTS, REPORT FINDS

The potential to face geographical reassignment, difficulty navigating the application process, and a fear of damaging one’s own work-life balance drive federal employees away from pursuing senior career positions in the government, according to a report released by the Senior Executives Association (SEA) in partnership with Avue Technologies Corporation.

The report, based on survey responses from nearly 11,800 General Schedule (GS) 14s and 15s from across the federal government, found that less than fifty percent of respondents believed the positives of joining the Senior Executives Service (SES) or Senior Professional positions outweighed the detractors. The survey also revealed that while pay proved neither a primary attractant nor an impediment to accepting a senior position, respondents often felt the pay would not correspond with increased responsibilities.

“The salary difference between SES and GS is not enough to make it worthwhile to go through the process of applying,” one respondent wrote, while another argued, “[f]or me, time is more important than money, which is to say that I would be reserved about accepting an SES position even if the monetary rewards were much greater than they are.”

That being said, the majority of employees polled still expressed interest in pursuing senior career positions. The survey found that the opportunity to display and be rewarded for creativity and innovation while taking on increased responsibilities attracted respondents to senior positions. The honor associated with serving as a senior leader also served as a motivator to consider pursuing these positions.

To counteract the real or perceived barriers to advancing beyond the GS ranks, the report detailed a series of recommendations targeting agency senior executive recruitment efforts. Agencies should work in concert with the Office of Personnel Management to stress the positive aspects of joining the SES or a position as a Senior Professional, utilizing those benefits emphasized by survey respondents, the report stated. Additionally, agencies must focus on “fostering an environment that values work-life balance” while also striving to place those interested in senior service in positions that do not require cross-country relocation, as concerns over work-life balance and geographic reassignment or transfer led respondents’ fears with moving into senior roles, according to the survey.

In addition to streamlining the application process, SEA’s report continued, Congress must detach senior executives pay from their own to avoid the current pay compression dilemma that simultaneously limits the annual pay increases of both senior executives and employees in the upper echelon of the General Schedule. According to the report, the link between congressional and senior executive pay encourages GS employees to forgo the increased work associated with senior career positions. Reforming the system would bolster the ability of the SES and Senior Professional positions to recruit and retain a quality workforce.

“The United States is facing daunting challenges spanning almost every facet of the federal establishment,” stated the report. “To address these serious challenges, the nation needs a capable and determined group of senior civil servants to help implement critical initiatives.”

SEA is a nonprofit, non-partisan professional association representing the interests of career federal executives. For more information on the survey, please visit: www.seniorexecs.org.

TREASURY TRANSACTIONS TO GO ELECTRONIC

The Treasury Department announced the launch of a new initiative designed to stimulate the Department’s utilization of electronic transactions when conducting business with millions of American citizens and businesses, an effort Treasury Secretary Tim Geithner said would save over $400 million and 12 million pounds of paper in the first five years. In addition to the tangible cost savings and reduced environmental impact, the shift away from paper-based transactions is expected to provide significant benefits to taxpayers through enhanced transaction reliability, safety and security.

"Treasury must lead the way in developing methods to deliver payments that are safe and secure in a manner that is efficient and reliable," said Geithner in the April 19 announcement.  "By moving to all-electronic payments, Treasury will save hundreds of millions of dollars and substantially reduce our environmental impact, making this a win-win for all Americans."

The initiative adopts a multi-angled approach, beginning with a requirement that Social Security, Supplementary Security Income, Veterans, Railroad Retirement and Office of Personnel Management benefits recipients receive payments through direct deposit or on a Treasury Direct Express debit card. New enrollees receiving benefits as of March 1, 2011, will face this requirement, while existing benefits recipients will be subject on March 1, 2013.

Businesses using Federal Tax Deposit coupons must transition to electronic deposits in 2011 under the Treasury’s initiative, a move the Department argues will reduce the risk of transaction error significantly. Lastly, Treasury will terminate federal employees’ ability to buy paper savings bonds through payroll deduction on September 30, 2010, and will apply the same policy to members of the private sector on January 1, 2011.

“The benefits of electronic transactions are well documented,” the Treasury announcement stated. “Aside from the large cost savings, electronic transactions provide safety, convenience and control for payment recipients, taxpayers and savings bond holders.  These initiatives do not require new legislation and can be accomplished by changes to Treasury's existing regulations.”

For more information, please visit: http://www.treas.gov/press/releases/tg644.htm.

ROOM TO IMPROVE ON FEDERAL HIRING OF HISPANIC EMPLOYEES

Despite a rising number of Hispanic hires in GS-15, Senior Executive Service (SES), and senior pay level positions, permanent Hispanic employees only constitute 8 percent of the total federal workforce, according to a report released on April 21 by the Office of Personnel Management (OPM). The percentage of new Hispanic hires dropped significantly between July of 2008 and July 2009, from 9.2 percent to 7.3 percent, the report found, a discovery OPM called a great concern.

Presented in OPM’s Ninth Annual Report on Hispanic Employment in the Federal Government released on April 21, the data suggests that setbacks encountered in the hiring of Hispanic employees have balanced recent strides made by the federal government. Total employment of Hispanics rose during the period analyzed, from 137,767 to 144,288, for instance, despite the decrease in new hires. OPM said those results indicate the government is doing a better job of retaining Hispanic workers while failing to address hiring concerns.

“While we have made some progress, there is room for improvement in fully drawing on the talents and energies of America’s Hispanic citizens at all levels of Federal Government,” OPM Director John Berry acknowledged in a letter to the President prefacing the report.

Berry said his agency has created three new offices to tackle the challenge of bringing federal diversity figures closer to those in the civilian labor force, which for Hispanic workers stands at 13.2 percent representation. OPM’s new Office of Diversity and Inclusion, Senior Executive Service Office, and the Student Programs Office will share a commitment to improving diversity in the federal workforce. Berry also said OPM has reversed a policy that prevented agencies from collecting applicant demographic data during the application process. This move, Berry argued, will enable agencies to more accurately determine if they are meeting diversity hiring goals.

An interagency task force developed by OPM is also scheduled to present Berry with a strategic plan regarding federal workforce diversity, he told the President, and expects to receive that proposal this month.

To view a copy of the report, please visit: http://www.opm.gov/Diversity/Hispanic/annual/reports/April2010/HispanicEmployment-2010.pdf.

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

GET INVOLVED AT THESE EVENTS!

PARTICIPATE IN THIS YEAR’S PUBLIC SERVICE RECOGNITION WEEK!

Interested in participating in this year’s Public Service Recognition Week (PSRW)? Communities across the country are participating in the annual celebration recognizing the invaluable role played by our nation’s civil servants!

From the steps of the Capitol to the smallest towns, public servants can participate in ceremonies, infor­mation fairs, parades and other events in their honor. At the same time, federal employees will work to open new avenues of communication with the public about the essential value of government service in sustaining the quality of American life.

Additional resources and sample document templates are available online at www.publicservicerecognitionweek.org to help facilitate your participation in PSRW whether you are an agency coordinator, Federal Executive Board (FEB), military base or school. In particular, these on­line resources provide ideas and tools to help you reach out to your community, the media and local educators.

Many of the ideas are simple, fun and inexpensive. Others require more coordination, planning and preparation. Whatever you do, the Partnership for Public Service and the Public Employees Roundtable exist as a resource to help you!

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

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.

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

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