Federal Managers Association

For a copy of the letter, or to send your Member of Congress an action letter on this issue, please visit FMA online at: www.fedmanagers.org.

FMA CHAPTER HOSTS SHIPYARD COMMANDER AT MONTHLY MEETING

On September 17th, FMA Chapter 14, Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS & IMF), honored the Shipyard Commander at its monthly dinner meeting. Captain Daniel Peters discussed the overall state of the shipyard. Several topics were discussed including audits, safety, and the National Security Personnel System (NSPS).

Earlier this year, the Naval Sea Systems Command (NAVSEA) conducted two major audits of the shipyard - a submarine safety audit and a radiation control audit. Captain Peters reported that the shipyard performed well in both audits and reiterated the importance of safety as a critical part of shipyard operations. Since 2002, PSNS has reduced its injury rate from 17.2 injuries a day to 5.28. On February 17, 2008, the Shipyard will convert to NSPS; a move for which all employees will need to be properly trained and ready. Captain Daniel Peters is the 46th Shipyard Commander at PSNS.

Nearly 250 FMA members attended the meeting, which also covered association business. Members who attended the 16th annual Mid-Year Conference in San Francisco shared with the chapter their experience and noted that the training provided was particularly outstanding. Chapter 14 President Tom Butler also informed the members of an upcoming event to raise money for the Combined Federal Campaign (CFC). Butler also stressed the importance of donating to FMA's Political Action Committee.

Have you recently held a chapter meeting or other event you’d like to share with your fellow FMA members? If so, please contact the FMA National Office at (703) 683-8700 or info@fedmanagers.org.

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WHAT’S HAPPENING ON CAPITOL HILL?  

DEFENSE LEGISLATION MOVES THROUGH THE SENATE

On October 2nd, the Senate passed the 2008 Defense Authorization bill (H.R. 1585) by a vote of 92-3. Included in the bill was a 3.5% pay raise for military personnel, in line with the House-passed version of the bill.

Additionally, the legislation would repeal the Department of Defense’s authority to implement the labor relations portions of its new pay-for-performance system known as the National Security Personnel System (NSPS). Under the bill, the system must be consistent with federal labor relations law in order for the Pentagon to continue it. Blue collar workers would be excluded from NSPS under the bill. The Senate version of the bill does not go as far as the House version, which would rescind DOD’s authority to reform adverse actions, appeals and labor relations.

Also included in the legislation was an amendment offered by Senators Edward Kennedy (D-Mass.) and Barbara Mikulski (D-Md.) that would make it more difficult for companies to bid for government work under the administration's "competitive sourcing" initiative, known as A-76. Under the amendment, which passed mostly along party lines, insourced work would not be held to the same standards of work outsourced by DOD. For a contractor to be awarded a job, it must prove a savings of at least 10% or $10 million.  

The following day, the Senate passed the $459.6 billion Defense appropriations bill (H.R. 3222). Both the House and Senate versions of the bill would provide $459.3 billion in discretionary funding. This is $3.5 billion less than Bush’s request and $39.7 billion, or 9.5 percent, more than in fiscal year 2007.

For more information on the bills, please visit: www.thomas.loc.gov.

PRESIDENT BUSH THREATENS TO VETO INSPECTOR GENERAL BILL  

In a tussle between the Executive and Legislative branches, President Bush issued a Statement on Administration Policy concerning the House of Representative’s passage of the Improving Government Accountability Act (H.R. 928), which amends the Inspector General Act of 1978. The legislation passed the House on October 3rd, and has been referred to the Senate Committee on Homeland Security and Governmental Affairs.

The legislation empowers the post of the Inspector General (IG) by codifying the only legitimate modes of dismissing an IG - if they are incapacitated, inefficient, neglectful of duty, commit malfeasance, convicted of a felony, or display “conduct involving moral turpitude.” The legislation grants IGs the ability to submit their own budgets to Congress and requires the President to include each IG’s request as a separate line item in the President’s annual budget request. Furthermore, the legislation extends the term of an Inspector General to seven years with the opportunity for reappointment.

There has been a contentious debate concerning the independence of the Inspector General’s office. In recent months, questions of independence or accountability have beleaguered the IGs at the Departments of Commerce and State, NASA, the Smithsonian Institution, and the Legal Services Corporation. In his statement, the President commented, “The Administration appreciates the work of inspectors general (IGs) and their mission to improve agency performance and eliminate waste, fraud, and abuse.....However, the Administration strongly objects to provisions that are inconsistent with these goals, and with broader policy considerations and constitutional requirements. If H.R. 928 were presented to the President in its current form, the President’s senior advisors would recommend that he veto the bill.”

To view H.R. 928, please visit: http://thomas.loc.gov/. The Executive Office of the President’s statement of administration policy can be viewed at: http://www.whitehouse.gov/omb/.

LEGISLATION ENCOURAGING SES DIVERSITY INTRODUCED

Two lawmakers have introduced legislation which would provide for greater diversity in the Senior Executive Service (SES). Senator Daniel Akaka (D-Haw.) and Representative Danny Davis (D-Ill.) proposed the legislation (S. 2148 and H.R. 3774, respectfully) amid concerns that there is not enough diversity among the highest ranking federal employees.

A Government Accountability Office report (GAO-07-838T) noted that women and minorities are not adequately represented in the SES. Of the 6,349 career SES members, there are only 325 African American men, 221 African American women, 164 Hispanic men and 65 Hispanic women. There are a total of 90 Asian/Pacific Islander men, 56 Asian/Pacific Islander women, 59 American Indian/Alaska native men and 27 American Indian/Alaska native women. The majority of SES members are considered white. Of these, 3,900 are white men and 1,436 are white women.

Specifically, the legislation would consolidate all SES policy and program oversight into a central office at the Office of Personnel Management and the new office would collect and maintain data on the race, ethnicity, gender and disabilities of people who have been certified as qualified to serve in the SES. Additionally, the office would develop regulations and guidelines concerning diversity, run mentoring efforts and establish recruiting, training and career advancement programs. The creation of the office and the work it would do is supported by the Senior Executive Association (SEA), an organization which represents the interests of senior executives.

However, the bill would also establish a three-person evaluation panel at each agency to review the qualifications of SES candidates and recommend job applicants to the agency’s Executive Resources Board, a provision which concerns the SEA. The panel would have three members, of which one would need to be a woman, and another a member of a racial or ethnic minority group, and could potentially cause furthering hiring delays according to SEA.

The legislation anticipates the high number of federal employees expected to retire in the next decade. For more information on the bill, please visit: www.thomas.loc.gov.

CONGRESS REVISITS THE ISSUE OF INHERENTLY GOVERNMENTAL WORK

Contractor issues and a philosophical debate have embroiled Capitol Hill on the topic of what services are deemed the realm of government agencies and what can be contracted out. This debate has raged for several years and Congress is revisiting the issue again with the outsourcing of tax collection by the Internal Revenue Service (IRS) to private contractors. This authority was granted to the IRS by Congress in 2004 to boost the government’s debt collection capabilities.

This mentality has changed over the years. On October 10, 2007, the House passed, by a vote of 232-173, the Tax Collection Responsibility Act of 2007 (H.R. 3056). The legislation permits the IRS to continue the contracts with private collectors if they were entered into force before July 18, 2007. The legislation also increases the penalties for failing to file correct income statements and increases tax payments for some large corporations. The pendulum has shifted again on the issue of contracting governmental functions to the private sector.

In a Statement of Administrative Policy, the White House commented, “ The Administration strongly opposes House passage of H.R. 3056. The bill is not consistent with the Administration’s commitment to a balanced approach toward improving taxpayer compliance and collecting outstanding tax liabilities. If H.R. 3056 were presented to the President, his senior advisors would recommend that he veto the bill.”

For information pertaining to H.R. 3056, please visit: http://thomas.loc.gov/.

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WHAT’S HAPPENING IN THE EXECUTIVE BRANCH?

FEDERAL COUNCIL RECOMMENDS 2.5% RAISE FOR ALL EMPLOYEES

As reported in the Government Executive and in The Washington Post, the Federal Salary Council (FSC), under the aegis of the Office of Personnel Management (OPM), on October 3rd recommended that federal employees receive an across-the-board pay raise of 2.5% in 2008. The remaining difference between the 2.5% and the amount appropriated by Congress, expected to be 3.5%, would go towards locality pay.

As it stands now, President Bush proposed a 3% pay raise for employees, while a 3.5% pay raise is likely to pass Congress. For the congressionally appropriated pay raise to take affect, Congress must pass and the President must sign the pay raise by November 30th. If Congress does not take action by that time, President Bush can enact his preferred pay raise.

The FSC advised the Administration to distribute the largest share of the locality raises to metropolitan areas where federal employees are the most behind their private sector counterparts in terms of pay. Typically, the approach works to the advantage of federal employees in Washington, D.C., San Francisco, New York, Boston and other high-wage cities.

In the study, the Federal Salary Council also determined that federal employees make on average 23% less than their private sector counterparts. The Council uses data from the Bureau of Labor Statistics’ National Compensation Survey to determine the discrepancy between the private and public sector salary differences. Pay issues are acute in metropolitan areas where the gap is more noticeable.

The Federal Salary Council is comprised of salary experts, employee representatives, and federal officials. For more information on locality pay adjustments and the Federal Salary Council, please visit OPM online at: www.opm.gov.

EDUCATION AND EXPERIENCE A MUST FOR FEDERAL EMPLOYMENT

The U.S. Merit Systems Protection Board (MSPB) recently concluded a study revealing that federal entry-level new hires are older and more experienced than may have been previously believed. The survey results concluded that the average age of an entry-level federal employee is between his late 20s and early 30s. Of these new hires, thirty-two percent graduated college several years ago and have one to five years of full-time work experience. The MSPB survey noted that twenty-four percent of the respondents joined the federal ranks after college. Another twenty percent of those surveyed had more than 20 years of experience.

These findings are beneficial for agencies who desire employees who have significant education and experience, but these hiring practices may neglect new hires that have the potential to be great civil servants, according to MSPB. Other reasons for this phenomenon may be the methods of recruiting employees. MSPB’s survey noted that new hires under the age of 30 tend to rely on personal recruitment sources that come to them. New hires 30 and over are more likely to go in search of opportunities.

The hiring standards of many federal agencies may be the reason for older and more seasoned new hires. Agencies often hire at higher entry-level grades, requiring applicants to possess higher education levels and experience that a recent college graduate may lack.

For more information on the study, please visit: http://www.mspb.gov/ .

ROLE OF FEDERAL EXECUTIVE BOARDS IN EMERGENCIES EXAMINED

The Senate Homeland Security and Governmental Affairs Committee held a hearing on September 28, 2007, discussing the ability of the Federal Executive Boards (FEBs) to contribute to emergency operations, especially in the preparation of a pandemic. A Government Accountability Office (GAO) report published in May 2007 found that FEBs can play a significant role in an emergency and are already an asset that is not utilized enough for such purposes.

The FEBs encompass executive directors of various agencies across the country who work in conjunction with agencies in their zone. The Senate noted the Boards’ ability to work with a variety of departments in their areas, along with state, local and non-profit agencies. Such a network is advantageous for the federal government in their efforts to mitigate problems that may arise in their localities. There are 28 FEBs across the U.S.

The testimonies of Kimberly Ainsworth, Executive Director of the Greater Boston FEB,and Michael Goin, Executive Director of the Cleveland FEB, agreed with the GAO report in the fact that FEBs lack of independent funding and personnel may hamper local FEB’s efforts. Currently, FEBs are overseen by the Office of Personnel and Management but do not receive specific appropriations and rely on host agencies with some extra space and funds for their FEBs.

For more information concerning the Senate hearing, please visit: http://hsgac.senate.gov/. To review the GAO report (GAO-07-515), please visit: http://www.gao.gov/.

TSP ACCOUNT NUMBER SWITCH CAUSES SOME CONFUSION

On October 1, 2007, the Thrift Savings Plan (TSP) began requiring enrollees to discontinue using their Social Security numbers to access their accounts and switch to their TSP account number and an eight character password. In August, TSP officials announced in The Federal Register that they were transitioning away from using Social Security numbers to access accounts and participants were informed that they will have to use both their account numbers and their new password. The switch away from using Social Security numbers was an effort to enhance security.

TSP officials have sent out 61,824 replacement account numbers to participants who claimed they did not get the original mailing with their new account numbers or misplaced it, according to GovExec.com. It takes on average ten days to receive a new TSP number. Participants will not have access to their accounts via the Web or through ThriftLine until they can provide an account number.

In congressional testimony in August, Greg Long, the Executive Director of the Federal Retirement Thrift Investment Board and, as such, the managing fiduciary of the Thrift Savings Plan, said the switch, “[M]ay generate some participant complaints during implementation, but we consider it to be essential to protect participants and the Plan.”

For more information on receiving a new account number or general information on TSP, please visit http://www.tsp.gov/account/index.html.

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GET INVOLVED AT THESE EVENTS!

HUMAN CAPITAL MANAGEMENT SYMPOSIUM: FEDERAL 2007  

The Federal Managers Association is cosponsoring the Human Capital Management Symposium: Federal 2007 conducted by Worldwide Business Research, November 14-16, 2007, at the Hilton Embassy Suites, Convention Center, in Washington, D.C.

Human Capital Management: Federal 2007 supports the government’s initiatives towards human resource transformation. By providing a venue for all human capital leaders and professionals in the federal sector to discuss the issues, brainstorm for solutions, and discover successful implemented programs, you get the opportunity to validate your current human capital management plans and apply tools and strategies to maximize the value of your human capital. For more information, please click here.

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Long Term Care Partners, LLC , FMA Corporate Partner.  Long Term Care Partners is the administrator of t he 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.

Blue Cross Blue Shield Association Federal Employee Program , FMA Sustaining 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.

Wright & Co. , FMA Sustaining Corporate Partner:  Wright & Co. has provided supplemental insurance programs to the Federal government for over 40 years.  They have built strong relationships with insurance companies and service providers to offer these comprehensive benefits at low, affordable group insurance rates.  Benefits include: Dental Insurance Plans; Term Life Insurance Plans; Accidental Death and Dismemberment Plan; and Personal Umbrella Plan.  Wright & Co. is also the originator of the Federal Professional Liability Program and provider of Disability Income Replacement coverage, underwritten by the Hudson Insurance Group, to all Federal employees.  For more information, please visit:  www.wrightandco.com

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.  Today GEICO has a special program established to support the Federal community.  GEICO’s Federal program participates in the following organizations and programs: GEICO Public Service Awards, which  have honored Federal workers (active and retired) who have contributed to the public good since 1980; and GEICO Federal Leave Record Cards, which for over 40 years have been provided by GEICO to Federal employees, free of charge, to help them track their annual leave.  Find out how much you could save with GEICO auto insurance as an FMA member by getting a line-by-line rate quote at:  www.geico.com

Shaw, Bransford, Veilleux and Roth, P.C. , (SBVR) concentrates its law practice on the representation of Federal employees, with a special emphasis on the representation of executives and managers.  SBVR serves as General Counsel to the Federal Managers Association and is uniquely situated to recognize the interests and viewpoints of Federal managers.  For up to two free half-hour legal consultations and reduced legal fees as an FMA member, please visit:  www.shawbransford.com

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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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