FEDweek Issue: Wednesday, November 24, 2004 FEDweek is the largest information resource in the federal government with now over one million weekly readers. To Subscribe, Go to http://www.fedweek.com/subscribepopup.htm *********************************************************** Valued Added Service to Our Readers:
Federal Job Search http://www.fedweek.com/Jobs/default.asp Job Bulletin Board: Post Your Federal or Private Sector Job. Contact [EMAIL PROTECTED] Unlimited Internet Access for as low as $10.90 http://fedweek.sparklist.com/t/294984603/821888/222/0/ Travel Discounts From FEDweek Traveling for the holidays? Check out our low cost travel rates At http://fedweek.sparklist.com/t/294984603/821888/339/0/ 3.9 cents per minute!--Plus 1000 FREE Minutes Long Distance Minutes http://fedweek.sparklist.com/t/294984603/821888/37/0/ ************************************************************* In This Week's Issue: 1. Pay Raise Moves Ahead 2. Contracting Language Dropped 3. Dental-Vision Bill Stalled 4. TSP Bill Has Hopes 5. L Fund Preparations Progressing 6. Guidance on Job Seeking Issued http://www.fedweek.com/HotFreeNews/default.asp 7. Check That Open Season Form 8. Experts Views: Permissible Changes in FEHB Enrollment http://www.fedweek.com/content/ev/index.php 9. Congress Clears Reforms for VA Doctors, Nurses 10. COLA Count Starts with Jump 11. Special Rate Back Payments Still Pending 12. Federal Legal Corner: Union Right to Attend Investigative Interviews http://www.passmanandkaplan.com 13. FEDweek Special Message to All Federal Employees & Retirees 2005 CSRS & FERS In-Print Retirement Planning Guides Now Available to All Federal Employees for Immediate Shipment (YOU WON'T FIND THESE RETIREMENT PLANING GUIDES ANYWHERE ELSE, EXCEPT FEDWEEK!) http://www.fedweek.com/csrs.htm **************************************************************** 1. Pay Raise Moves Ahead The 3.5 percent January 2005 federal pay raise, which has been working its way through Congress for most of this year, is only a few steps from reality, as Congress has added that figure to a wrap-up spending bill covering the rest of the current fiscal year. President Bush is expected to sign the bill-even though the White House objected to the figure once again in a letter to the lame-duck session of Congress that finalized the spending measure-and to issue an order soon specifying how the amount will be split between across-the-board and locality pay for general schedule employees. Earlier the Federal Salary Council recommended that if a 3.5 percent raise is approved, 2.5 percentage points should go across the board and the money for the other percentage point be split up as locality pay. That would be consistent with past practice in similar situations. 2. Contracting Language Dropped In other action on the catchall spending bill, House and Senate members dropped language-earlier approved by the full House and by Senate committee-that would have barred the Bush administration from carrying out several of the key changes in contracting-out policy ordered last year. The White House had threatened a veto over the provision, claiming it would undercut its "competitive sourcing" initiative, which is one of the cornerstones of the administration's management reform agenda. However, President Bush earlier signed measures imposing restrictions at the Defense Department, which does about two-thirds of the government's contracting out. Those provisions generally require that work can be converted only if the contractor bid would produce savings of at least 10 percent or $10 million, and additionally would create a process through which the in-house side could appeal a contracting-out decision-although the appeal would have to be filed by management, not by employees or their union representatives. 3. Dental-Vision Bill Stalled During the lame-duck session Congress was unable to achieve final passage of proposals (HR-3751 and S-2657) to create a standalone vision and dental benefit coverage program for federal employees, retirees and family members that would supplement the limited coverage available through the Federal Employees Health Benefits program. The two chambers were trading bills back and forth on the issue, but the House adjourned before voting on the final Senate version. Sponsors likely will try again early in the new Congress; the benefit would not have been available until 2006 in any event. 4. TSP Bill Has Hopes A similar back and forth occurred on plans (S-2479 and HR-4324) to end the twice-yearly open seasons in the Thrift Savings plan and allow employees to join the program or change ongoing investment levels at any time. The House ultimately dropped a provision-estimated to cost $1.1 billion over ten years-that would have started automatic and matching government contributions for newly hired employees immediately, rather than keeping them on the current schedule in which those payments don't start until nearly a year has passed in some cases. However, the Senate didn't take up the bill in its final form. A chance for passage this year remains, however, since the Senate is due to return for a brief work session in which it might take up the bill. 5. L Fund Preparations Progressing The Thrift Savings Plan expects to have its planned new "lifecycle" (L) fund available in mid-2005, following issuance of a contract to a firm to develop details of how the fund will operate. The new fund will allow investors to set a target withdrawal date-in the mutual fund industry, five year increments are common, although that is still to be decided for the L fund-and the money will be distributed among the TSP's five current funds depending on a predetermined risk/reward formula. The allocation will be adjusted periodically and also will become more conservative as the projected withdrawal date approaches. 6. Guidance on Job Seeking Issued The Office of Government Ethics recently issued a memo regarding ethical requirements applying to federal employees who are seeking outside employment. For a closer look at the memo, go to http://www.fedweek.com/HotFreeNews/default.asp in the hot free info section of our website. 7. Check That Open Season Form As the Federal Employees Health Benefits program open season continues (through December 13), those making coverage changes should be sure to use the revised version, dated October 2004, of the election form, the SF-2809. There are several changes on the form from the prior version, including with the event codes that permit change and the enrollment of family members. 8. Experts Views: Permissible Changes in FEHB Enrollment There have always been certain permissible changes in Federal Employees Health Benefits enrollment outside an open season, writes benefits expert Reg Jones. "This year they've been revised and, in some cases, expanded, in part to accommodate the 'cans and can'ts' created by the advent of premium conversion," he writes. You'll find his column at http://www.fedweek.com/content/ev/index.php 9. Congress Clears Reforms for VA Doctors, Nurses Congress has cleared for President Bush's signature a bill (S-2484) making several changes in the way Department of Veterans Affairs doctors are paid and in the working schedules for VA nurses. The measure would replace the current physician and dentist pay schedules with a base pay that would be determined by length of employment with VA, ranging from $90,000 to $133,000, plus market pay based on the individual's work experience, the need for that specialty, the market demand and other factors, as well as incentive pay to reward performance of up to $10,000 per year. In addition, VA could pay nurses who work three regularly scheduled 12-hour shifts within one workweek as having worked a full 40 hours in that week and could pay annual bonuses of up to $25,000 to the nurse executive in each medical care facility. 10. COLA Count Starts with Jump After the first month of the counting period toward the January 2006 federal retirement cost-of-living adjustment, retirees have banked 0.8 percent, following a 0.6 percentage point increase in October in the consumer price index measure used to set that COLA (the COLAs are determined by averaging the third quarter of one year to the next, which is why the banked increase is higher than the monthly count). The countdown toward the 2006 COLA has no effect on the COLA to be paid in January 2005, which will be 2.7 percent for those retired under CSRS and 2.0 percent for those retired under FERS and who are eligible for COLAs. 11. Special Rate Back Payments Still Pending It could still be a number of months before final payments are made in the settlement of the long-running back pay suit for special rate employees whose pay raises were restricted in fiscal 1981-1988 under a policy in effect at that time. The deadline for filing claims passed on October 27, and there are no exceptions allowed. Those who have already filed claims-or challenges to the amounts computed for them-need not do anything else unless instructed. The settlement administrator currently is sending out decisions on challenges. Late last year a partial distribution was paid to those who had not filed challenges to their amounts. The final distribution, including payments to those who filed challenges, is expected to occur in mid-2005. 12. Federal Legal Corner: Union Right to Attend Investigative Interviews The Federal Labor Relations Authority (FLRA) has ruled that unions have the right to receive notice of, and an opportunity to attend, EEO investigative interviews held with bargaining unit employees. SSA, Office of Hearings and Appeals, Boston Regional Office and AFGE, Local 1164, 59 FLRA 160 (2004). In order for a union to have the right to representation under the Federal Service Labor-Management Relations Statute (Statute), there must be: (1) a discussion; (2) which is formal; (3) between a representative of the agency and a unit employee or the employee's representative; (4) concerning any grievance or any personnel policy or practice or other general condition of employment. After a contract investigator contacted and interviewed three employees as witnesses for another employee's EEO complaint, AFGE, Local 1164 brought unfair labor practice (ULP) charges against the Social Security Administration (SSA). The FLRA easily determined that contract investigators were representatives of the agency and reaffirmed previous decisions that EEO complaints are grievances under the Statute. The FLRA again noted that the broad definition of "grievance" under the Statute encompasses complaints filed under a negotiated grievance procedure as well as complaints filed under alternative statutory procedures of the EEOC. The cases turned, however, on the FLRA's interpretation of whether there was a "discussion" and whether it was "formal." In order to determine whether meetings constitute formal discussions under the Statute, the totality of the circumstances presented must be examined and the following illustrative factors are considered: (1) the status of the individual who held the discussions; (2) whether any other management representatives attended; (3) the site of the discussions; (4) how the meetings for the discussions were called; (5) the length of the discussions; (6) whether a formal agenda was established; and (7) the manner in which the discussions were conducted. In the first case, the FLRA found that there was no formal discussion. An investigator called an employee (potential witness) and identified himself. He asked the witness if she had knowledge of what another employee (who had filed a formal EEO complaint) did at work or had knowledge of the employee's problems with management. The potential witness said that she had no firsthand knowledge of the information sought. Soon after, the potential witness terminated the call. The FLRA found that this phone conversation did not constitute a formal discussion based on the totality of the circumstances. In particular, it was noted that the conversation was not scheduled in advance, took place in the employee's private office, was terminated by the employee, and was not documented by affidavit or confirming letter. For two other employees, however, the FLRA found that contact with the EEO investigator constituted formal discussions. In these cases, an investigator sent an e-mail to the employee, in which she explained that she needed to conduct an interview about the EEO complaint filed by another employee, and gave the witness-employees an option of being interviewed by telephone at work or at home. After an appointment was made, a telephonic interview was conducted, the interview was tape-recorded, and a statement was prepared. The FLRA found that these conversations constituted a formal discussion within the meaning of the Statute. Unlike the telephone conversation involving the first employee, the other two employees had advance notice of the topic of the conversation; the interview was tape-recorded; and a statement describing the conversation was prepared and given to the employee. These circumstances demonstrated that this discussion was formal. As a remedy for the ULPs, the FLRA ordered the SSA to notify all persons in writing, including independent contractors and subcontractors, who are authorized to investigate formal EEO complaints on behalf of the SSA, of the right of the union to notice and an opportunity to attend interviews held with bargaining unit employees. ** This information is provided by the attorneys at Passman & Kaplan, P.C., a law firm dedicated to the representation of federal employees worldwide. For more information on Passman & Kaplan, P.C., go to http://www.passmanandkaplan.com. ** 13. FEDweek Special Message to All Federal Employees & Retirees 2005 CSRS & FERS In-Print Retirement Planning Guides Now Available to All Federal Employees for Immediate Shipment (YOU WON'T FIND THESE RETIREMENT PLANING GUIDES ANYWHERE ELSE, EXCEPT FEDWEEK!) http://www.fedweek.com/csrs.htm **************************************************************** Brand New 2005 CSRS and FERS Retirement Planning Guides Just Published! 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In short, they contain everything you need to know to make your federal retirement a success. These 2005 CSRS & FERS Retirement Planning Guide are NOT Dot.com downloads or government handouts or pamphlets, they are In-print comprehensive and easy-to-understand planning guides that were written and edited by our veteran-team of federal retirement planning experts in the field. 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Go to http://www.fedweek.com/pub/index.php to place your order now and get your FREE Pub: Your Strategic Guide to Investment & Financial Planning shipped to you immediately. Other Ways to Order: You may also call our toll-free order line at (888) 333-9335 to place your order for these retirement planning guides: The 2005 CSRS Retirement Planning Guide http://www.fedweek.com/csrs.htm The 2005 FERS Retirement Planning Guide http://www.fedweek.com/fers.htm Or you may also mail your order with payment of $13.95 ($9.95 plus $4.00 s&h) to: FEDweek P.O. Box 5519, Glen Allen, VA 23058. Special Bonus: The first 10,000 orders placed for either of these CSRS and FERS Retirement Planning Guides will receive a FREE Pub: Your Strategic Guide to Investment and Financial Planning. Please pass this information on to your fellow colleagues. FEDweek Publisher, Don Mace VP of Marketing, Kevin Couch Website: http://www.fedweek.com 11541 Nuckols Rd. 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