NALC Joins Other Labor Unions In Urging Senate to Drop Tax on Health Plans
Joint Letter Delivered to Senate Majority Leader Reid
NALC President Fred Rolando, in a joint letter with leaders of four other major labor unions, urged Senate Majority Leader Harry Reid (D-NV) December 1 to seek an alternative in pending health care legislation to a proposed excise tax on health insurance plans that would unjustly penalize millions of middle-income workers.
Speaking for about 5 million members, the five labor leaders applauded Reid’s dedication and sustained hard work in moving the health care reform agenda forward. But they said they were “deeply troubled” by the excise tax proposal affecting health care plans whose costs exceed certain benchmarks.
“While we appreciate the significant challenges inherent in paying for quality health insurance reform we need and support, we continue to believe that an excise tax on [so-called ‘Cadillac’] health care plans is both bad politics and bad policy,” the five said. “In fact, the tax would have a devastating impact on exactly the type of good, comprehensive health care plans reform should be promoting.”
Joining in the letter along with Rolando were Communications Workers President Larry Cohen, Teamsters President James P. Hoffa, United Food and Commercial Workers President Joseph T. Hansen, and National Education Association President Dennis Van Roekel.
Instead of curbing excessive benefits for executives, they said the tax would adversely impact millions of workers under collectively bargained health plans. While the tax technically is on insurance companies that offer plans above a certain threshold, this additional cost would simply be passed along to workers, the union leaders said.
“Both employees in the private and public sectors could possibly have their benefits reduced or premiums raised,” they warned.
They pointed out that the excise tax would have a discriminatory impact on plans that cover older workers and retirees, or workers in high cost regions or high risk occupations, or plans primarily serving women. Moreover, the net result of the 40 percent excise tax would be to force many plans to cut back important benefits and encourage employers to cut back on family coverage.
“We know that health insurance reform can be paid for through cost savings both inside and outside of the health care system without a new excise tax on insurance plans,” the five said. “As the debate moves forward, we urge you to continue to look for ways to eliminate the excise tax and develop a program that does not penalize our members.”
NALC news Bulletin: http://nalc.org/news/bulletin/PDF2009/Bull09-21.pdf
FERS Sick Leave Credit Passes House-Senate Conference Committee (No More FERS Flu)
RE-EMPLOYED ANNUITANT AND FERS SICK LEAVE BILLS IN FINAL DEFENSE AUTHORIZATION
NARFE, October 7, 2009
National Active and Retired Federal Employees Association (NARFE) President Margaret L. Baptiste today praised Senators Carl Levin, D-MI, and John McCain, R-AZ, and Reps. Ike Skelton, D-MO, and Howard P. “Buck” McKeon, R-CA, (the chairs and ranking members of their respective chambers’ Armed Services Committees) and other members of the Fiscal Year 2010 Defense Authorization conference committee for including several civil service improvements in the final legislation.
The final agreement would allow federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity; permit Federal Employees Retirement System (FERS) workers to initially credit half, and later all, of their unused sick leave toward retirement; and provide for retirement equity for Federal employees in Hawaii, Alaska and the U.S. Territories. The Conference Agreement is expected to pass the House and Senate.
“During the past several years, NARFE has played a leading role, along with other federal and postal employee organizations, in overcoming several obstacles to pass these needed civil service improvements,” President Baptiste said. “For example, absent NARFE’s persistence, legislation (S. 629) sponsored by Senators Susan Collins, R-ME, Herb Kohl, D-WI, and George Voinovich, R-OH, to allow federal retirees to be re-employed by the government would not have been included in the final Defense bill. Many Federal retirees continue to make critical contributions to our safety and well-being during this time of national need and when workforce shortages have deprived some agencies of employees with critical and specialized skills,” Baptiste said. “This is a victory for active and retired federal employees.”
Baptiste was particularly pleased that a compromise was reached on the FERS sick leave legislation by phasing in the allowance. When Congress created FERS in 1986, the benefit of allowing workers to apply their unused sick leave toward retirement was traded off for other FERS benefits not available under the Civil Service Retirement System (CSRS). “However, with the benefit of 23 years of hindsight, we recognize that the inequity in the treatment of accrued sick leave between FERS and CSRS has hurt productivity and increased agency costs. For that reason, we have strongly supported the concept that all federal civilian retirement programs credit unused sick leave toward retirement,” Baptiste said.
The NARFE president specifically lauded Rep. James Moran, D-VA, for introducing his own FERS sick leave equity bill (H.R. 958) and for being a long-time champion of the issue. Baptiste also commended Reps. Edolphus Towns, D-NY, Stephen Lynch, D-MA, and Senators Joseph Lieberman, I-CT, Susan Collins, R-ME, Daniel Akaka, D-HI and James Webb, D-VA, who served as the Defense bill conferees, for helping to persuade their colleagues to include the civil service provisions. In addition, she thanked Reps. Steny Hoyer, D-MD, Chris Van Hollen, D-MD, Frank Wolf, R-VA, Eleanor Holmes Norton, D-DC, Gerry E. Connolly, D-VA, Paul Sarbanes, D-MD, Donna Edwards, D-MD, Elijah Cummings, D-MD, and C.A. “Dutch” Ruppersberger, D-MD, for the significant role they played in this victory on behalf of NARFE and the federal/postal community.
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NARFE, one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/ retiree organization, NARFE represents the retirement interests of nearly 5 million current and future federal annuitants, spouses, and survivors.
FERS Sick Leave Credit Bill Still Alive
House Approves Bill That Includes FERS Sick Leave Credit
H.R. 2990 (Disabled Military Retiree Relief Act of 2009) would ‘provide that federal employees receive credit for unused sick leave when determining annuity if they have not been paid for those days. The bill also enables federal employees to deposit refunds of retirement deductions with interest under the Federal Employees Retirement System (FERS). Additionally, certain District of Columbia employees who transfer to federal employment would be eligible for federal retirement credit.”
Other portions of the bill includes:
This legislation seeks to expand the number of military “Chapter 61″ retirees-a reference to the section of the U.S. Code covering the military disability retirement plan-that would be allowed to receive their full military retired pay plus veterans’ disability compensation. This is a change from current law in which retirement pay is typically reduced dollar-for-dollar by any amount received in disability compensation
Retired Pay Benefits: H.R. 2990 would adjust retired military pay and grade for reserve members who are recalled to active status and who complete at least two years of service in active status. These adjustments would be retroactive to January 1, 2008.
The bill would also expand for nine months (January through September 2010) the eligibility for concurrent receipt of both military retired pay and veterans’ disability compensation for all Chapter 61 disability retirees, regardless of their disability rating or years of service.
Compensation and Benefits for Service Members: H.R. 2990 would extend for one year certain bonus and special pay authorities for reserve forces, health care professionals serving in the Selected Reserve, as well as nuclear officers. Additionally, the bill would extend for one year certain authorities for special pay, incentive pay and bonuses for military personnel. This includes hazardous duty pay, reenlistment bonuses, referral bonuses, skill incentive pay, and retention incentives for service members assigned to high priority units.
CBO Report Pegs Cost Of Modifying Retirement Benefits Calculation For CSRS Part-Time Employees
According to Govexec.com: “A bill aimed at modifying the way retirement benefits are calculated for certain federal employees who work part-time at the end of their careers would cost the government $39 million from 2010 to 2019, the Congressional Budget Office reported this week.”
“The legislation (S. 469), sponsored by Sen. George Voinovich, R-Ohio, would modify the way retirement annuities are calculated for employees covered under the Civil Service Retirement System. Currently, CSRS employees who retire with part-time service late in their careers could see reduced annuities.”
“According to the CBO report, the bill would provide an average of $2,000 more in retirement benefits per year for about 650 of the expected retirees from the CSRS system in 2010. Additional retirements by 2019 would boost the overall cost of the measure to $39 million, according to CBO.”
“At the same time, the budget office reported, a bill that would let agencies rehire retirees without cutting their annuities would not cost taxpayers extra.”
The Basis for Congressional Budget Office Cost Estimate :
Under current law, a CSRS employee with service prior to April 7, 1986, who works part-time at the end of his or her career may receive a lower annuity than an otherwise identical employee whose part-time service occurred earlier. In either case, the employee will receive a total retirement benefit that results from the sum of two annuity calculations—one for service before April 7, 1986, and one for service on or after that date. A major factor in the calculation of a federal retirement annuity is an employee’s “high-3,” the average of the three highest consecutive years of salary. Often, an employee’s highest three years of salary occur in the final three years of service. For employees with part-time service in their career, the basis on which the high-3 is calculated is different for service prior to April 7, 1986, than for service after that, which may result in a lower annuity for employees who work part-time at the end of their careers.
S. 469 would change the calculation of retirement benefits for employees with part-time service to treat all service the same. As a result, annual spending for civil service retirement would rise by amounts growing from $1 million in 2010 to $6 million in 2019; overall, enacting the legislation would increase direct spending by $39 million between 2010 and 2019. CBO assumes the bill will be enacted near the end of fiscal year 2009, which would affect benefits for about 650 new CSRS retirees in 2010 (the number of new retirees would decline annually thereafter, as CSRS is a closed retirement system with no new entrants). The Office of Personnel Management estimates that the average increase in value of retirement benefits for eligible employees as a result of this bill would be about $2,000 a year.
Related Link: A Risk in Going Part-Time
OPM Updates Benefits Checklist Upon Death of a Federal Employee
From PostalReporter reader:
OPM updated their “Summary of Benefits Checklist Upon the Death of a Federal Employee” that agencies, like USPS, are supposed to use. The PDF file is posted at http://www.opm.gov/retire/pubs/bals/2009/09-102attachment2.pdf. This would be a useful reference for those people planning for or facing this situation. Who knows how helpful HRSSC would be?
OPM Issues Proposed Changes To Federal Employees Dental and Vision Insurance Program
From the Office Of Personnel Management via Federal Register
The U. S. Office of Personnel Management (OPM) is issuing proposed regulations on changes in the Federal Employees Dental and Vision Insurance Program (FEDVIP). We are amending the regulations to authorize retroactive enrollment changes when an enrollee has lost his or her spouse through death or divorce or the enrollee’s last eligible child dies, marries, or reaches age 22. We are also amending the regulations to add that an individual may enroll 31 days before the enrollee or an eligible family member loses other dental and/or vision coverage. We are also amending the regulations to clarify the reference to excluded positions in 5 U.S.C. 8901(1). We are also including in the regulations certain Senate restaurant employees who are employees of the Architect of the Capitol as individuals who are eligible to elect to continue enrollment in FEDVIP if they are eligible and elect to continue their retirement coverage.
Postal Worker Benefit Cuts in the Works?
From National Association of Postal Supervisors NAPS Legislative & Regulatory Update
Although the Obama Administration has pulled the plug on initial proposals to bring postal service employee benefits in line with those of federal workers, it has signaled that it has not backed off of interest in potentially reducing postal employee benefits.
Kenneth Baer, spokesman for the Office of Management and Budget, told the Wall Street Journal on May 10 that the Administration is reviewing USPS worker benefit policies and that “[a] more comprehensive package of reforms will be coming down the pike.”
In March, the White House, as part of a preliminary Fiscal Year 2010 budget document, proposed requiring postal workers to pay 27% of their health insurance costs, the same as civil servants and up from the current level of 17% that postal workers currently pay. The plan also called for postal employees to begin paying 67% of their life insurance premiums, just as feds do.
The White House, however, dropped its initial USPS benefits reduction proposal after postal unions complained that changing the benefit payment levels would violate collective bargaining agreements, which mandate the benefit levels, at least for covered workers, and run through 2011. More recent detailed White House FY 2010 budgets did not propose a USPS employee benefits adjustment.
The Obama preliminary budget proposal projected government savings of $752 million in fiscal year 2010, or $9.4 billion over the next decade by reducing USPS worker benefits.
NAPS and other postal employee groups will continue to monitor these developments very closely.
Postal Managers In New York Tackle Employees Sick Leave Usage
Postal Managers In New York Tackle Employees Sick Leave Usage
Lean Six Sigma (LSS) may prove to be just the right medicine to cure sick leave usage at the Buffalo, NY, P&DC.
Misused or excessive sick leave can lead to increased overtime, increased power usage due to additional machine and plant runtime, production delays, and poor employee morale. In March, the Buffalo P&DC’s sick leave rate for FY 2009 was 5.72 percent, well above the 4.95 percent rate at the end of FY 2007.
The team decided to use LSS methodology to study sick leave usage at the plant. First, team members developed a list of interview questions for supervisors and managers. Next, the team conducted a brainstorming session on the causes of inconsistent policy administration and cataloged primary causes.
The team decided that employee awareness and responsibility, along with policy administration, should be more effectively and uniformly communicated to everyone in the organization. Team recommendations included increased and consistent communication about sick leave policies and improved training for supervisors.
To monitor changes in sick leave use, the team created metrics charts for each manager and supervisor, along with a service talk for employees. The team’s goal is to reduce the plant’s sick leave rate to 3.5 percent this fiscal year.
Source: USPS News Link
Senate to Consider Legislation Giving Sick Leave Credit to FERS Retirees
APWU News
Senate Majority Leader Harry Reid (D-NV) has placed on the Senate calendar legislation that would give retirement credit for unused sick leave to postal and federal employees enrolled in the Federal Employees’ Retirement System (FERS). The legislation is part of the Family Smoking Prevention and Tobacco Control Act (H.R. 1256), which passed the House of Representatives on April 2, by a vote of 298-112.
In addition to authorizing the Food and Drug Administration to regulate tobacco products, the bill includes a number of provisions affecting postal and federal employees:
- The legislation would credit postal and federal workers with unused sick leave when determining the amount of their FERS annuity. Currently, only employees covered by the Civil Service Retirement System (CSRS) receive credit for unused sick leave. The Office of Personnel Management (OPM) has found that FERS employees approaching retirement use significantly more sick leave than CSRS employees. A recent OPM study concluded that this costs employers approximately $70 million in lost productivity each year. The change would reduce the incentive for employees to use sick leave as they near retirement.
- The act would automatically enroll newly hired federal employees in the Thrift Savings Plan, and make them eligible for matching contributions from their employer.
- The bill also requires the establishment of a “qualified Roth contribution” option for the TSP. This option, previously available only in the private sector, permits employees to contribute to their TSP account after paying taxes on the contribution, and allows them to withdraw the money tax-free upon retirement.
Although supporters of the bill hope to pass it before Congress’ Memorial Day recess, because of objections to the tobacco provisions, Republican senators are expected to filibuster the legislation.
“The APWU has sought sick-leave credit equity for FERS employees for many years,” said APWU Legislative & Political Director Myke Reid. “We have an opportunity to accomplish that goal in the coming weeks.
“I encourage all APWU members to contact their senators and ask them to support this important legislation.”
In an April 1, 2009, “Statement of Administration Policy” the White House expressed strong support for the bill.
House Confirms Support for FERS Sick-Leave Credit
APWU News
For the second day in a row, the House of Representatives approved legislation that would provide sick-leave credit to employees covered by the Federal Employees Retirement System (FERS).
The “Family Smoking Prevention and Tobacco Control Act” (H.R. 1256), introduced by House Energy and Commerce Committee Chairman Henry Waxman (D-CA), incorporates the provisions of H.R. 1804, which was adopted on April 1. The new bill also would provide the Food and Drug Administration with greater authority to regulate tobacco products. It passed 298-112, with 21 members not voting.
In addition to the tobacco provisions, the merged bill would:
- Give credit for unused sick leave to FERS employees;
- Provide automatic enrollment for new employees in the Thrift Savings Plan;
- Establish a “qualified” Roth contribution program, and
- Permit separated former employees to redeposit retirement contributions they withdrew in order to qualify for past service credit.
(For more information, see the article, “House Approves Bill to Give Sick-Leave Credit to FERS Employees).