FEDweek Issue: Wednesday, October 13, 2004

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Valuable Information for the Federal Family

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In This Week's Issue
1. House Backs Improved Bonus, Other Authorities
2. New Procedures on Payments Sought
3. APWU Health Plan's Consumer-driven Health Option Gives You More
http://fedweek.sparklist.com/t/294959407/821888/326/0/
4. Travel Comp Time Also Included
5. Overtime Rules Under Review
6. Computer Networks Now Offers Unlimited Monthly Internet   
http://fedweek.sparklist.com/t/294959407/821888/148/0/  
7. TSP Open Season Arriving
8. Could Be Last One
9. Contracting, Base Closings Issues Resolved
10. More Student Loans Being Repaid
11. Experts' View: How OPM Processes a Retirement Application
http://www.fedweek.com/experts/default.asp.
12. Special Rate Reviews Ongoing
13. HSA Site Draws Attention
14. Federal Legal Corner: MSPB Overrules Hearing Decision for 
Whistleblower http://www.passmanandkaplan.com. 
15. New In-Print 2005 Federal Handbook Publication Announcement
http://www.fedweek.com/Publications/default.asp 
***********************************************************

1. House Backs Improved Bonus, Other Authorities
The House has joined the Senate in passing legislation (S-129) 
to improve agency use of recruitment, retention and relocation 
payments, among other changes designed to aid agencies in 
hiring and keeping employees with skills in high demand. 
Under current policy, agencies may pay recruitment or 
relocation bonuses or retention allowances of up to 25 
percent of basic pay. The measure would turn the retention 
payments into bonuses as well, impose service agreements 
on all three types of bonuses but allow payments of up to 
50 percent of basic pay, subject to a cap over the course 
of the service agreement period of 100 percent of the 
starting basic pay. There are some differences between the 
House and Senate versions that will have to be worked out.

2. New Procedures on Payments Sought
Under the bill, recruitment and relocation bonuses could be 
paid as an initial payment, in installments, as a final lump 
sum upon the completion of the service period, or in a 
combination; retention bonuses could be paid in installments 
after completion of specified periods of service or in a 
single lump sum at the end of the full period of service. 
Also, retention bonuses could be paid if an agency determines 
that the employee would be likely to leave for another agency, 
not just when the employee is at risk of leaving the government 
entirely. The enhanced bonus authority could not be used for 
political appointees. 

3. APWU Health Plan's Consumer-driven Health Option Gives You 
More
This fall Federal and Postal employees again have the opportunity 
to take a serious look at the Consumer-driven Option offered by 
the American Postal Workers Union (AWPU) Health Plan, and 
administered by Definity Health. Offered since 2002, nearly 
20,000 federal and postal employees and their dependents are 
members of the APWU Consumer-driven Option. 

Here's what's special about this benefit program:

No co-pays for doctor visits, prescriptions or hospital stays
No referral requirements to see a specialist
No upfront deductible
Low bi-weekly premiums of $18.40 (single) or $42.85 (family) 
for Postal employees or $40.89 (single) or $95.23 (family) 
for Non-Postal employees
Nationwide network of more than 450,000 doctors
100% coverage each year for in-network Preventive Care 
$400 single/$800 family of coverage for dental and vision
Annual in-network coinsurance maximum out of pocket of 
$4,500 (your worst case)

Here's how it works: A Personal Care Account (PCA) is fully 
funded for your use at the start of each year. Benefit 
dollars in this account cover your first $1,200 (or $2,400 
for a family) of healthcare and pharmacy expenses at 100%, 
with no co-pays. If you don't use all of your benefit dollars 
during the year, the remaining balance rolls over to the next 
year.  And each year up to $400 (single) and $800 (family) 
of the PCA can be used for dental or vision care.  Preventive 
care is covered at 100% in-network and is not subtracted 
from the PCA.  All members have access to extensive support 
resources, both online and by phone, including nurse Health 
Coaches available 24/7.  

Discover the APWU Health Plan Consumer-driven option: a health 
plan you can trust to put your needs first.  To learn more, 
please visit 
http://fedweek.sparklist.com/t/294959407/821888/326/0/ 
or request more information by clicking this link 
http://fedweek.sparklist.com/t/294959407/821888/325/0/.  
Representatives are also ready to answer your questions at 
1.866.UDEFINE (1.866.833.3463).  

4. Travel Comp Time Also Included
The measure also allows workers to take time off in exchange 
for travel outside of official duty hours. The general ban 
against being paid for such time long has been a sore point 
among employees who must travel on official duty; they argue 
that in effect they are being forced to contribute time to 
their agencies. Under current policy, travel time is paid 
only if the time spent is within the days and hours of the 
employee's regularly scheduled workweek, the travel involves 
the performance of work while traveling, is incident to 
travel that involves the performance of work while traveling, 
is carried out under arduous conditions, or results from an 
event that could not be scheduled or controlled 
administratively. Employees receiving compensatory time 
off for travel would not be entitled to payment for unused 
compensatory time they earned.

5. Overtime Rules Under Review
Office of Personnel Management officials say that OPM is 
reviewing rules issued by the Labor Department that took 
effect in August changing certain overtime policies in the 
private sector. Overtime policy in the federal government is 
set according to separate rules published by OPM; the Labor 
rules do not have a direct effect on federal employees apart 
from some quasi-corporate agencies. However, OPM officials 
say they are looking at the Labor rules to determine whether 
adjustments in the OPM rules are needed. Any changes would 
be subject to the notice and comment procedures for revising 
regulations. Efforts are being made in Congress to repeal the 
Labor rules, although the Bush administration is working to 
keep them on the books.

6. Computer Networks Now Offers Unlimited Monthly Internet   
Computer Networks, Inc.  Is pleased to announce that FEDweek 
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CNW has added over 7,000 new V.92 access lines
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FEDweek reader.

7. TSP Open Season Arriving
The Thrift Savings Plan on Friday (October 15) will begin one 
of its twice-yearly open seasons, an opportunity for eligible 
employees not currently investing in the program to begin 
investments and one for those currently participating to 
change their levels of investment. During the open season, 
which runs through the end of the calendar year, FERS system 
investors may raise their biweekly contributions to as much 
as 15 percent of salary and those under CSRS may raise theirs 
to up to 10 percent, with both subject to an annual dollar 
cap, which itself is rising in 2005, to $14,000. The percentage 
of salary limits are set to end a year from now, although the 
annual dollar caps will remain. 

8. Could Be Last One
This could be the last of the TSP's open seasons, a fixture of 
the plan since its inception; legislation is pending in Congress 
to abolish open seasons and allow new enrollments or changes 
in investment amounts at any time. If that measure is enacted 
this year, the TSP would issue rules which presumably would 
take effect before the scheduled start of the following open 
season, next April 15. The Senate has passed its version and 
the House Government Reform Committee has passed its own 
version, which differs mainly in that it would allow 
government contributions for newly hired employees to start 
immediately, rather than remain on the same waiting period 
schedule currently used--a schedule that can mean a delay of 
nearly a year in some cases. That has proven to be a hangup, 
since the Congressional Budget Office has estimated the 
additional cost of that provision at $1.1 billion over 10 years. 

9. Contracting, Base Closings Issues Resolved
House and Senate conferees resolved several issues in a Defense 
Department budget measure (HR-4200) that had been hung up for 
many months. The conferees dropped House language that would 
have delayed by two years the base closing process that is now 
in its initial stages and that is expected to produce a report 
for a special commission's recommendations next year, 
recommendations that will then go to Congress for an up-or-down 
vote as a package. Also, a compromise was reached on the issue 
of rights for federal employees to appeal decisions to 
contract-out work. Rather than allow employees--or their union 
representatives--to file appeals with the Government Accountability 
Office, as was originally proposed, a management official will 
be able to file an appeal upon a showing that a majority of 
employees favors an appeal. If the official decides there is no 
basis for filing the appeal, an explanation would have to be 
provided to Congress.

10. More Student Loans Being Repaid
Federal agencies are increasing the use of their authority to 
repay their employees for the cost of student loans, the Office 
of Personnel Management has found, although fewer than 2100 
employees received such payments in 2003, totaling about $9.1 
million, the Office of Personnel Management has reported. The 
State and Defense department and Government Accountability 
Office are the leaders, with DoD increasing its use of the 
authority significantly in 2003, although agencies some 
agencies previously not using it at all, such as the 
Securities and Exchange Commission, started using it in 2003.
For excerpts from the OPM report, go to 
http://www.fedweek.com/HotFreeNews/default.asp in the hot 
free info section of our website.

11. Experts' View: How OPM Processes a Retirement Application
Once you turn in your retirement papers, the Office of 
Personnel Management takes over the processing of your 
retirement, writes benefits expert Reg Jones. While that 
process is under way, you will start getting interim payments 
that typically are close to but less than the full amount of 
your final annuity. "That's because it's better for you to 
get more money when the processing is completed than to have 
to return an overpayment," he writes. You'll find his column at 
http://www.fedweek.com/experts/default.asp.

12. Special Rate Reviews Ongoing
Federal agencies have a Friday (October 15) deadline for deciding 
whether employees currently under special rate designations 
should keep that status, a decision driven largely by their 
experiences in recruiting and retaining those employees. The 
agencies will report to the Office of Personnel Management, 
which will issue guidance later. The large majority of special 
rate employees keep that status from year to year. Special rate 
employees typically get the across-the-board component of the 
annual general schedule raise and also get the higher of either 
their special rate adjustment or locality pay.

13. HSA Site Draws Attention
The Office of Personnel Management says that a web site it 
established to provide information on the new "health savings 
account" plans that will be available in the Federal Employees 
Health Benefits program in 2005 (www.opm.gov/hsa) registered 
more than 44,000 visitors since its establishment September 20 
and that more than 12,000 visitors have requested email updates 
and information. HSAs couple a high-deductible health plan with 
a tax-favored account and will be available mostly to employees; 
a parallel arrangement called health reimbursement arrangements 
will be available mostly to retirees. Eighteen national or health 
maintenance organization plans will offer such options for the 
2005 plan year. The open season for changing plans begins November 
8.

14. Federal Legal Corner: MSPB Overrules Hearing Decision for 
Whistleblower
In a rare decision on the merits of a whistleblower case, the 
Merit Systems Protection Board on September 22 overturned an 
administrative judge's (AJ) order reinstating a civilian Army 
employee. In SE-0752-02-0301-I-1, the Board went to unusual 
lengths to scrutinize the initial decision which found that the 
agency had violated the procedural due process rights as well as 
the Whistleblower Protection Act when it terminated a 45-year 
civilian employee for conduct unbecoming a federal employee. 

The case involved a senior civilian employee who was terminated 
based on specifications alleging, among other things, that he 
made false statements alleging misconduct by agency employees 
and that he made statements critical of military personnel to 
subordinates in a context and setting that rendered them damaging 
to the work environment. The AJ determined that the employee had 
engaged in protected activity and that his disclosures played a 
part in the decision to remove him. While the AJ upheld some of 
the specifications in the agency's misconduct charge, he ruled 
that the agency had failed to meet its burden to show an independent, 
legitimate reason for the removal. Because he found the removal to 
be improper retaliation, he did not examine the reasonableness of 
the penalty in light of the sustained agency charges.

At the hearing the employee argued, and the AJ who heard testimony 
from all the witnesses agreed, that the agency had improperly denied 
a requested two-week extension for time to prepare an oral reply. 
The AJ noted that the employee's request was for a short amount of 
time and that granting it would not have prejudiced the agency in 
any way. He further noted that the deciding official testified he 
did not consider a lesser penalty because, "without a response," 
removal was warranted. The AJ credited the employee's contention 
that more time was needed because of the number and complexity of 
the issues in the case, the distance between the employee (stationed 
in Japan) and his counsel (in the U.S.), and the difficulties in 
scheduling an oral reply. The Board overturned this ruling, finding 
that the agency had in fact allowed 29 days in which the employee 
could have made a reply, but he simply failed to do so. The Board 
viewed the reasons for the requested extension differently, finding 
that they did not constitute legitimate reasons for granting it. 
Finally, it also held as too speculative the AJ's reasoning that if 
the deciding official had received the reply he was presented with 
before the hearing, the deciding official would likely have come to 
a different conclusion about the agency's charge. The Board did not 
address the AJ's finding that granting the extension would not have 
harmed the agency.

With regard to the employee's affirmative defense of whistleblower 
reprisal, the Board took the rare step of reviewing the record and 
substituting its own assessment of witness credibility. It then 
concluded that the agency met its burden to prove by clear and 
convincing evidence that it had a legitimate, non-discriminatory 
reason and would have terminated the whistleblower despite his 
protected activity. While admitting that credibility determinations 
are entitled to the highest deference, the Board proceeded to 
comb through the record testimony and documentary evidence to 
support conclusions directly opposite from the AJ's about which 
witnesses were more credible. Because the case hung to a large 
extent on determining the motives of various witnesses and 
officials, these credibility determinations dictated the outcome 
of the dispute.
 
Finally, one method an employee can use to prove retaliation is 
to show that he was treated differently than similar employees 
who did not blow the whistle. The AJ cited the agency's lack of 
evidence that it had treated any similarly situated employees as 
harshly as it had the plaintiff as undermining its argument that 
it had not discriminated against him for whistle blowing. On 
review, the Board cited the same lack of comparable treatment 
evidence as supporting the agency's argument that it did not 
treat him differently because he had made protected disclosures.  

** 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. **

15. New In-Print 2005 Federal Handbook Publication Announcement
***********************************************************
Tuesday: October 12, 2004
To: All Federal Employees, Managers, and Postal Workers
(Also Available for Bulk Agency Distribution at Discounted Rates)
http://www.fedweek.com/Publications/default.asp 

Dear FEDweek Reader:
For 2005, the Federal Employees Handbook has been completely 
revised and expanded in an all-new easier to read two-column 
format while still keeping the size of the book and cost 
down to $9.95! 

This has been the federal government's number one selling
reference tool for the past 7 years and we're proud to announce
that the 2005 version has been published!

As you may know, there's a lot of information available to 
federal employees in the form of downloads and sometimes 
brochures or pamphlets, but most often they can fall 
woefully short in many areas. FEDweek steps in and fills 
the void where the federal government and others leave off, 
adding to and "translating" official language to make it 
easier to understand and to use. Written by our veteran team 
of experts, the 2005 Federal Employees Handbook contains the 
very latest critical information on your federal pay and 
benefits and workplace policies and will help you take full 
advantage of your opportunities and avoid costly mistakes. It 
has brand new sections on the latest Federal Employment and 
Benefit Policies, Including:

All New in The 2005 Federal Employees Handbook:

A close look at the new personnel authorities for the 
Departments of Defense and Homeland Security-their pay, 
performance evaluation, hiring, disciplinary and other 
procedures that mean huge changes in work life for employees 
working there and possible precedents for other agencies

The latest on contracting-out policies and how they might 
threaten your job

New hiring authorities that could affect your promotional 
potential, including how veterans preference comes into 
play

New leave benefits for employees called to active military 
duty

The latest on what happens to your benefits if you separate 
before retirement eligibility

New loan and other policies at the Thrift Savings Plan

How you might qualify for a payment from the "human capital 
performance fund"

Guidance on what will be expected of you in emergency situations

Latest policies and figures on health, life and long-term care 
insurance, flexible spending accounts, federal retirement, 

Social Security and other benefits 

Also Included in This Valuable Flagship Handbook:

The new "premium conversion" tax break under FEHB 
How federal employees can use the Career Intern Program 
Government payments for liability insurance 
Public transit subsidies for federal workers 
Ways agencies can pay you more money 
How the government can help you pay off your student loans 
Allowable use of computers and other office equipment for personal 
purposes 
Hours of work for official travel 
Allowable reimbursement for travel from non-federal sources 
Latest information on leave policies, including eligibility for 
lump-sum payments for annual leave, alternative uses of sick leave 
and new rules on military leave for federally employed Reservists 
How the new "retirement errors" correction law can affect your 
benefits 
Eligibility, benefit choices, and premium considerations under the 
imminent federal long-term care program. 
How to file employment-related financial claims against the 
government 
New requirements to allow employees to work off-site, including from 
their homes! 
Brand new TSP investment options and rules 

AND COMPLETELY REVISED AND UPDATED FOR 2005: 
Federal Pay Systems, Pay and Compensation Policies, Health Insurance, 
Life Insurance, Retirement, The Thrift Savings Plan, Social Security, 
Medicare, Taxation of Federal Benefits, General Employment and 
Workplace Rules, Employment Restrictions, Veterans' Rights and 
Preference, On-the-Job Injuries and Illnesses, Downsizing Policies, 
Directory of Unions and Other Groups, Appealing Agency Actions Against 
You, Alternative Dispute Resolution, Leave and Other Forms of Time Off, 
Survivor Benefits Travel, Transportation, Per Diem and Relocation 
Allowances, And much, much more! 

"This 2005 Federal Employees Handbook is an essential reference guide
 you can't afford to be without whether you are a federal employee, federal 
manager or executive or postal worker".
Don Mace
Publisher, FEDweek

How to Get Your 2005 Federal Employees Handbook for Your or Your
Agency http://www.fedweek.com/Publications/default.asp 
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