Federal Managers Association

To view a copy of the letter, please visit FMA’s Member Only section at www.fedmanagers.org.

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WHAT’S HAPPENING ON CAPITOL HILL?

GPO AND WEP TAKEN TO TASK BY HOUSE SUBCOMMITTEE

The House Ways and Means Subcommittee on Social Security held a hearing on January 16, 2008 on the benefits for economically vulnerable beneficiaries. Chairman Michael McNulty (D-N.Y.) presided over the hearing with the majority of the subcommittee members present along with Representatives from other Committees which have contributed to this topic.

The topics under discussion by the Subcommittee were the Government Pension Offset (GPO), the Windfall Elimination Provision (WEP) and the expansion of Social Security coverage for the four percent of the American workforce that does not contribute to Social Security.

Since 1983, the Government Pension Offset has prevented retirees from collecting both their federal annuity and any Social Security benefit based on their spouse’s work.  Two-thirds of the amount of the earned civil service retirement annuity is used to offset Social Security spousal or survivor benefits that might otherwise have been payable.  The Windfall Elimination Provision reduces the earned Social Security benefit of a federal worker who also receives a government annuity based on his/her own work.  Hundreds of thousands of federal civil servants can lose half of their own earned social security income as a result of the WEP, and many annuitants are affected by both offsets.

Ranking Member Sam Johnson (R-Tex.) expressed his belief that GPO and WEP ensure workers who pay into a government retirement system outside of Social Security are treated no better than those who work in jobs covered by Social Security. Representative Johnson echoed the sentiments of some of the Republican members of the Subcommittee by concluding that a full repeal of both provisions would cost taxpayers $80 billion over 10 years. His solution is a bill introduced by Representative Kevin Brady (R-Tex.), H.R. 2772, the Public Servant Retirement Protection Act which revokes WEP. The legislation replaces WEP with a sliding-scale formula that will calculate the projected Social Security benefits depending on the number of years of service.

The other legislation is heralded by Democrats - H.R. 82, the Social Security Fairness Act of 2007, introduced by Representative Howard Berman (D-Cali.) which fully repeals GPO and WEP. Representative Berman highlighted the philosophical difference between the approaches of his legislation and his colleague Representative Brady. Rep. Berman commented that Congressman Brady’s bill produces offsets against entitled benefits which he viewed as unfair. Representative Brady countered that the four percent of the workforce who do not contribute to Social Security will be receiving benefits undeservedly.

The pension offset and windfall elimination provision affect thousands of America’s most vulnerable. A total of 401,200 Social Security beneficiaries are affected by the GPO, of whom about 75 percent are women, approximately 42 percent are widowed, and 85 percent have lost their entire Social Security spousal benefit.  The data also showed roughly 971,300 Social Security beneficiaries affected by the WEP.  About two-thirds were men, and 20 percent had paid into Social Security for at least 21 years.

“The GPO adversely affects many women, especially widows, who often lose all of the Social Security protection their husbands had provided for them. Those most affected by this are women who worked in lower paying jobs such as clerical workers, school bus drivers and cafeteria workers; or those who had short government careers, or worked part-time while raising a family,” commented FMA National President Darryl Perkinson. “Spouses receiving pensions from private sector employers face no such offset. While we at FMA recognize this legislation comes with a high price tag, Congress should work to fix this injustice imposed on our nation’s civil servants.”

For more information on the hearing please visit: http://waysandmeans.house.gov/index.asp.

HOUSE REMEDIES DEFENSE AUTHORIZATION HOLD-UP

The House passed a revamped version of H.R. 4986, the National Defense Authorization Act of 2008, by a vote of 369 – 46 early last week. President Bush initially pocket vetoed the bill (H.R. 1585) because Section 1083 of the legislation had the potential to make Iraqi assets held in U.S. banks vulnerable to lawsuits in U.S. courts. The original language of the bill allowed those victims of Saddam Hussein’s state-sponsored terrorism the right to sue in a U.S. court. The new bill alters the original language by allowing the President to waive the application of that section to the Government of Iraq, while also expressing the sense of Congress that the President should negotiate with the Iraqi government to satisfy the claims made by American citizens against its former leader, Saddam Hussein. No other changes were made to the bill.

The Department of Defense’s (DOD) National Security Personnel System (NSPS) was one of the programs highlighted in the authorization legislation for DOD. The legislation guarantees federal employees operating under NSPS 60 percent of the annual raise that all civilian federal employees receive, while the remaining 40 percent will be used for performance-related salary increases, predicated on an employee’s rating report. The bill also included a 3.5 percent pay raise for those serving in the Armed Forces.

The legislation would also restore collective bargaining rights to unions at DOD. Additionally, unions would be able to negotiate binding contracts with management at DOD. Defense employees have the recourse to appeal disciplinary actions to the Merit Systems Protection Board (MSPB). Blue-collar wage-grade civilian and Defense laboratory employees are exempt from entering NSPS through 2011, retaining their pay system under the legislation.

In response to the passage of H.R. 4986 , House Armed Services Committee Chairman Ike Skelton (D-Mo.) commented, “I am very, very pleased with this bill.  I think that history will say that this one was a comprehensive, if not the most comprehensive, Defense authorization bill that our Congress has passed in decades.”

To review H.R. 4986, please visit: http://thomas.loc.gov/.

DOMESTIC PARTNERSHIP BILL INTRODUCED IN HOUSE AND SENATE

Senator Joseph Lieberman (I-Conn.) and Representative Tammy Baldwin (D-Wis.) introduced S. 2521 and H.R. 4838 respectively, both known as the Domestic Partnership Benefits and Obligations Act. The legislation grants domestic partners the same benefits, legal protections and obligations that married, heterosexual federal employees now enjoy.

Under the bill, to be eligible for benefits, a domestic partner of a federal employee is required to be in a committed relationship, reside in the same domicile, and remain in a relationship with a single, domestic partner. Even after the dissolution of a partnership or death of a partner, the former domestic partner of a federal employee is entitled to the same benefits that they received while they were together, a protection afforded to heterosexual, married couples.

S. 2521 has been referred to the Senate Homeland Security and Governmental Affairs Committee. H.R. 4838 has been referred to the House Committees on Oversight and Government Reform, House Administration, and Judiciary.

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

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

GAO REPORT CALLS FOR MORE SUPPORT FOR SSA

The Government Accountability Office (GAO) has continued its review of the Social Security Administration’s (SSA) disability claims backlog, which is becoming a permanent fixture within the agency. Before the President signed H.R. 2764, the Consolidated Appropriations Act of 2008, GAO released its report and it was one reason Congress increased funding for SSA’s administrative expenses.

Adequate funding is part of the equation for SSA to end the backlog quagmire, but GAO notes there are other mechanisms which will alleviate the problems plaguing SSA. From the initial arrival of a claim to its reconsideration, the hearing and appeals process must be altered to relieve the claims backlog. From 1997 to 2006, backlogged disability claim requests doubled, reaching 576,000 cases. An increase in the number of claims correlates with an increase in the processing times for adjudicating cases, with an additional 95 days tacked on from when a disability claim awaits a decision.

In 2006, adjudication at the hearing level represented over 415,000 claims, constituting 72 percent of all SSA backlogged claims that year and 30 percent of claims processed at the hearing stage took 600 days or more. The volume and the length of time to process the claims have caused the process to crawl at a snail’s pace. An aging population has aggravated the backlog and changes in disability eligibility requirements have played a role in the log-jam.

The number of Administrative Law Judges (ALJ) available fluctuated from year-to-year. In fiscal year 1998, 1,087 were available while in fiscal year 2001, 919 were available. SSA Commissioner Michael Astrue believes that a minimum of 1,250 Administrative Law Judges could handle the current caseload. Even support staff assigned to the judges fluctuated. From 1997 to 2006, annual full-time staff was reduced by 1,700 employees.

On a positive note, since 2001, SSA has increased productivity by 2.5 percent per year, even when the agency has been inadequately funded. SSA requires additional funds and support from the Legislative and Executive branches of government to ensure this problem is not exacerbated.

“As the number of disability claims continues to grow at record numbers, we at FMA have persistently advocated to increase funding for SSA in order to decrease the backlog,” commented FMA National President Darryl Perkinson. “It is my hope that due to the GAO report, in conjunction with more and more constituents begging their representatives in Congress to solve this problem, SSA will start to receive the funding it deserves to serve the American people.”

To view a copy of GAO-08-40, please visit http://www.gao.gov/.

NSPS LAWSUIT MAKES ITS WAY TO SUPREME COURT

The fight over the legality of the Department of Defense’s personnel system has reached a new level with the American Federation of Government Employees (AFGE) petitioning its case to the Supreme Court.

On January 7, AFGE asked the high court to reverse a lower appeals court ruling that allows DOD to proceed with its National Security Personnel System (NSPS). Rollout and implementation of NSPS has been contentious from the get-go. Nearly two years ago, a federal district court judge ruled that the NSPS provisions pertaining to labor relations, collective bargaining and adverse actions violated the law, a victory for the unions. However, the Pentagon appealed the district court's decision, and in May of last year, the D.C. Circuit Court upheld the NSPS regulations in a 2 to 1 decision. In the court’s opinion, the Defense Department has the right to restrict collective bargaining for its civilian employees through November 2009.

The filing may be a moot point, however. The fiscal year 2008 National Defense Authorization Act (H.R. 4986) contains language which would restore collective bargaining rights to unions at DOD. Defense employees have the recourse to appeal disciplinary actions to the Merit Systems Protection Board (MSPB) under the bill. Additionally, unions would be able to negotiate binding contracts with management at DOD. The President initially vetoed the bill over an unrelated provision and the House of Representatives passed a modified version on January 16, with no changes to the NSPS provisions.

NON-PROFIT GROUP ANNOUNCES FEDERAL HIRING PILOT PROGRAM

The non-profit organization Partnership for Public Service announced at the National Press Club on January 17, 2008, a pilot program that will help private sector employees and retirees navigate the federal hiring process and enter public service. The Partnership is collaborating with International Business Machines (IBM) and the Department of the Treasury to serve as the test case for this program before it is deployed.

Max Stier, President of the Partnership, spoke about the impending human capital challenge that can be eased by hiring older Americans. The Partnership’s platform initiative called FedExperience produced evidence demonstrating that the aging population are ideal candidates for federal employment. The report cited a March 2007 Pew Research Center poll that indicated only 42 percent of people under 30 viewed government as inefficient, while 70 percent of respondents between the ages of 50 to 64 held the same view. The report also found 57 percent of older Americans thought or had an experience that led them to believe that the federal job application process was more difficult than for private sector or nonprofit employers.

Stanley Litow , Vice President for Corporate Citizenship and Corporate Affairs at IBM, discussed the company’s “transition-to-teaching” program that permits IBM employees to take time off to obtain teacher certifications and to practice teaching. IBM sponsors a “corporate service corps” that will send 600 employees in small teams to developing countries to work on economic and education issues. Litow believes that helping current IBM employees train for a second career after retirement is good for both the company and the public. IBM’s “transition-to-teaching” model will be expanded to include FedExperience. Litow is confident of the success rate of the number of IBM employees transitioning into federal employment. Thus far, the “transition-to-teaching” program has a graduation rate of 100 percent. He believes if the same amount of time, energy and money is devoted toward training IBM employees to transition to federal service, it will be a success.

Another panelist at the Partnership event was Rick Hastings, Deputy Chief Human Capital Officer for the Department of Treasury. Hastings hopes the pilot program with the Partnership and IBM will be under way by July 2008. For the project with Treasury, the Partnership will ensure that job openings are sent to IBM employees and help them become acquainted with federal hiring standards.

The other panelist at the event was American Association of Retired Persons (AARP) representative, Deborah Russell, who noted that half of the 40 million AARP members are considering a second career after retirement. Russell believes many of her members would be interested in starting a second career in the federal government.

The impending retirement tsunami was another theme that was discussed at the FedExperience forum. Office of Personnel Management (OPM) Director Linda Springer gave the keynote address at the event, commenting that OPM is fully behind the notion that the government needs to reach out to the corporate sector people who are ending their careers there and looking for ways to engage and value an opportunity to work for the public sector.

The predominant theme at the FedExperience was recruiting older Americans. However, Director Springer urged federal agencies to increase recruiting young Americans. The impending departure of 193,000 mission-critical federal employees from government service is enough to encourage OPM to boost recruitment.

To find out more about the event hosted by the Partnership for Public Service, please visit http://www.ourpublicservice.org/OPS/.

DÉJÀ VU? IG CRITICIZES DOD AND VA FOR CONTRACTING PRACTICES

Auditors at the Department of Defense’s (DOD) Office of the Inspector General (IG) took to task DOD’s interagency contracting procedures, specifically Pentagon purchases through the Department of Veterans Affairs (VA). The Inspector General report was published December 20, 2007 noting Defense acquisition managers and VA contracting officials failed to adhere to the Federal Acquisition Regulation and Pentagon procurement rules when making purchases through the VA.

The Inspector General’s office reviewed 49 purchases at the Defense Department, paying noteworthy attention to the Air Force. The IG report found problems with all but three procurement contracts. The report stated, “Specifically, DOD organizations lacked acquisition planning to determine the best source, proper statutory authority and required agreements for non-DOD contracts.” The report also highlighted acquisition failings, revealing, “The VA and DOD organizations were also deficient in contract administration, including the surveillance of contractor performance, assignment of contracting officer representatives, preparation of quality assurance surveillance plans, and collection and recording of contractor past performance.” The IG report reveals how acquisition officers have absolved their fiduciary responsibility of protecting the public trust.

This lapse in oversight has serious implications for federal agencies and the public. In fiscal year 2006, the Defense Department made more than 1,700 interagency purchases of goods and services through the VA, worth more than $373 million. Nearly 90 percent of those purchases were made by the Air Force. The IG report highlighted interagency contracting problems between the Department of Defense and the Departments of Interior and Treasury and the National Aeronautics Space Administration (NASA).

The IG report recommended DOD and the VA to initiate a training course and establish policies regarding the use and management of interagency contracts. These recommendations are identical to the ones suggested by the Inspector General in a report published October 2006 on the Pentagon’s interagency purchases through the General Services Administration (GSA). DOD’s behavior indicates these suggestions fell on deaf ears.

The report concluded, “As a result, DOD organizations had no assurance that the purchases were based on best value or that the VA used effective and efficient acquisition procedures.”

To view a copy of the Inspector General report, Report No. D-2008-036, please visit http://www.dodig.mil/.

A FRIENDLY REMINDER FROM OMB ON TRAVEL RULES

The Office of Management and Budget (OMB) Deputy Director for Management Clay Johnson released a memorandum on January 8, 2008, reminding federal agencies of the authorized use of premium travel by federal employees. OMB was spurred into action by a Government Accountability Office (GAO) report, GAO-07-1268, published September 28, 2007, that outlined the rampant abuse of premium travel by federal agencies.

The Government Accountability Office concluded that 67 percent of premium travel was unauthorized, unjustified or both during the period studied. Such improper travel cost taxpayers $146 million. Federal rules allow premium-class travel when individuals have a physician-certified disability, when such travel is needed for security purposes, when the mission is urgent and coach is not available, or when the destination is outside the United States and scheduled flight time is more than 14 hours with no rest stops along the route.

Deputy Director Johnson asked agencies to clarify their travel policies to ensure that travel requests be approved by “an individual at least at the same level as the traveler.” The memorandum requests federal agencies to develop and issue internal guidelines that delineate when mission criteria and intent call for premium class accommodations and to clarify the definition of a rest period. OMB is requiring agencies to request those federal employees who have a disability to certify their disability annually, with the exception for those who have a life-long disability. OMB requires agencies to inform them of the implemented internal controls highlighted in the memorandum by March 31, 2008.

To view the OMB memorandum, please visit http://www.whitehouse.gov/omb/. The GAO report can be found at http://www.gao.gov/.

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GET INVOLVED AT THESE EVENTS!

FMA ZONE CONFERENCES SCHEDULED ACROSS THE COUNTRY!

For the ninth straight year, the FMA Zone 1 Conference will be held at the Pier 4 Hotel in Somers Point , NJ, February 1 – 3, 2008. The registration cost is $30 per delegate and the FMA room rate is $70. Hotel reservations can be made by calling 1-888-927-9141. Contact Zone 1 President Mike Donovan with any questions or for more information at donovanme@aol.com.

On February 9th, FMA Zone 3 will be holding its annual conference in Atlanta, Georgia. The event will take place at the Hampton Inn Atlanta Galleria. Reservations can be made by calling 1-800-426-7866. The special FMA rate is $99.00 per night. The registration cost of the conference is $60. Questions? Contact Zone 3 President George Smith at czardog1@comcast.net.

On the same day, FMA Zone 2 will hold its annual conference at the Sleep Inn Suites in Baltimore, Maryland. For Reservations, call 410-789-7223 and be sure to ask for Pamela Sharps. The FMA nightly rate is $70.00 and the conference registration fee is $25. Questions? Contact Zone 2 President Jackie Bell at JEBell1949@comcast.net.

A full agenda for all the conferences can be found on FMA’s Web site. Please keep checking back with us online at www.fedmanagers.org for up-to-date information.

GOVERNMENT PERFORMANCE SUMMIT 2008 (10TH ANNUAL)

For the past ten years, federal leaders have gathered to explore the latest mandates and best practices in performance management and process improvement initiatives at the annual Government Performance Summit. The Summit is led by speakers from the upper echelons of the Executive and Legislative branches, as well as leading federal managers who offer their experience and advice to managers looking to improve the results earned by their programs and agencies — putting attendees in the room with the decision-makers on management policy from the Administration and Congress. For more information, visit the “Events” section at www.fedmanagers.org. FMA is an official cosponsor of this conference.

The event will be held February 25-27, 2008, at the Sheraton National Hotel in Arlington, VA. FMA members receive a $200 discount off registration fees. When registering, note priority code "P800-FMA."

HUMAN CAPITAL MANAGEMENT FOR DEFENSE 2008 (HCMD 2008)

Human Capital Management for Defense (HCMD 2008) is critical to your success in strategically managing human capital. Learn how senior leaders are developing the right mix of skills across the total force, aligning skills to requirements, and addressing competency gaps. Attend HCMD 2008 to gather best practices in the recruitment and retention of quality personnel and learn about exciting workforce development initiatives across DOD. For more information, please visit www.hcmd2008.com. FMA is an official cosponsor of this conference.

The event will be held February 26-29, 2008 at the Marriott Crystal Gateway, Arlington, VA.

REGISTER TODAY FOR FMA’S 70TH ANNUAL NATIONAL CONVENTION!

Planning for the Federal Managers Association 70th annual National Convention is underway! The event will take place March 9 – 13, 2008, at the Hilton Crystal City Hotel in Arlington, Virginia. Delegates can expect to receive a wealth of knowledge from private sector and government leaders under this year’s convention theme, Empowering America’s Workforce for the Challenges of Today, Tomorrow and Beyond.

Registration for the convention is now available. The regular registration rate is $425 and runs through February 13, 2008. The special FMA hotel rate is $169 per night and reservations can be made through the FMA Web site. The deadline for the special hotel rate is February 6th. Make your reservations today!

Please continue to check the “Events” section of the FMA Web site, www.fedmanagers.org, for the most up-to-date information. We look forward to seeing you in March!

APPLY FOR AN FMA-FEEA SCHOLARSHIP

Through the Federal Employee Education & Assistance Fund (FEEA), FMA has built a burgeoning scholarship program (administered by FEEA exclusively for FMA), which serves to award academic scholarships to deserving candidates through generous contributions from FMA members. It’s available to all FMA members, dependents and spouses, as well as FMA retirees. Thirteen winners from FMA families were awarded scholarships last year. To apply for the FMA-FEEA Scholarship visit www.fedmanagers.org/public/benefits.cfm. Instructions and a complete application for this scholarship can also be found in each year’s winter issue of The Federal Manager.

FYI: The Federal Employee Education & Assistance Fund has a new CFC number this year; 1-1-1-8-5. FEEA’s new number – 11185 – is the one to use when making a pledge. Make a donation, or learn more about how FEEA uses your contribution, by visiting www.feea.org.

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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.

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.

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.

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.  FMA’s leadership fully recognizes the need to prepare career-minded federal employees to manage the demands of the 21st century workplace with greater competence and fully supports this unique and comprehensive certificate program.  For more information, please visit:  www.managementconcepts.com/fmp/fmpodp.asp.

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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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