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NSPS another step closer to ending; FERS 'flu' cure a "done deal"

October 9, 2009 - 5:43am

Congressman Jim Moran
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By Dorothy Ramienski and Phil Vogel
Internet Editors
FederalNewsRadio

"It's a done deal," Senior Correspondent Mike Causey told the Federal Drive, a day after the Defense Authorization bill passed Conference Committee. Causey said it is a trifecta win for all federal employees because NSPS is going to be phased out, the FERS Flu is going to be cured, and retired federal employees are going to be allowed to return to work without harming their annuities.

The bill requires all NSPS employees to be transitioned back to their old personnel systems by 2012. The Federal Manager Association's National President Darryl Perkinson joined the Federal Drive and said that the FMA has "always viewed this issue as being one of improving productivity of the people who we have working for us and we see the inclusion of this legislation and the potential passage as being a positive for the Federal workforce in the days ahead."

However, not all FMA members are happy that NSPS is likely to be gone because there is a fear that managers will not be properly paid for their performance. Perkinson expects discussion on how to reward people for performance to continue over the next year.

The possibility that retired federal employees can go back to work without fear of hurting their annuities should allow the government to use the experience and expertise of veteran employees, but it is important to note that there are limitations on retired employees that come back, so Perkinson told Federal News Radio, new or potential employees should not feel threatened that a retired fed will take their job.

"The conference report on the National Defense Authorization Act for Fiscal Year 2010 reflects almost all of the decisions of the Secretary of Defense and the President to terminate troubled programs, delay programs for which requirements are not yet defined, and reorient programs and systems to deal with today's threats and apply the lessons gained from more than seven years of war. This is a solid bipartisan bill that supports the men and women of the armed forces, both active and reserve, and their families, and provides them with the pay, benefits, equipment, and training that they need. The enactment of this conference report will send an important message to our troops that we, as a Nation, stand behind them and appreciate their service," said Senator Carl Levin (D-MI), Chairman of the Armed Services Committee, in a press release.

[For a complete list of all provisions contained in the bill, see the Senate Armed Services Press Release Conference Report for the National Defense Authorization Bill for Fiscal Year 2010 or the House Armed Services Committee Press Release, House-Senate Committee Agreement Reached On Fiscal Year 2010 Defense Authorization Bill]

In a press release, Congressman Edolphus Towns (D-NY) said, "Government agencies, including the Defense Department, will have the tools they need to encourage highly talented individuals to return to government service, and to allow senior civil servants to pass along experience as they phase out of their careers. The bill also addresses the related problems of absenteeism and lost productivity in federal agencies that result from the current 'use it or lose it' approach to sick leave."

That 'use it or lose it approach' refers to the so-called FERS flu, which the bill also tackles.

If passed, members of the Federal Employee Retirement System would have their sick leave credited to them when they retire. The change will affect about eighty percent of the federal workforce, says Senior Correspondent Mike Causey, and the Unions deserve a lot of the credit for getting these changes done. FMA concentrated on curing the FERS flu because 75% of federal workers under the FERS system said they would use as much sick leave as possible in their last years.

Congressman Jim Moran (D-Va.) gave the Daily Debrief an update on what will happen with FERS.

"Within four years, it will be identical to the CSRS system. What was happening was that people under the FERS retirement system . . . were simply not coming to work in the last few weeks before retirement. That's just when we needed them to be training their replacements, and, of course, they're most knowledgeable and skilled at that point. They have the maximum amount of experience, and we want them there for those last few weeks -- and, of course, it wasn't fair. Both retirement systems, we argued, should be identical and so now, within four years, they will be. It has to be phased in over four years because of the cost."

Moran also told Federal News Radio that he thinks NSPS will be repealed, but didn't want to speculate on what type of system would replace it until the bill was signed.

National Treasury Employees Union President Colleen Kelley said, "NTEU is appreciative of the hard work of so many congressional supporters in addressing an issue that has great importance to all the employees in the FERS system."

"The sensible and practical provisions, many of which were contained in the original House version of the bill, will strengthen the civil service while providing immeasurable benefits to American taxpayers. I am extremely hopeful this bill will reach the President's desk and be signed into law in the near future," said Federal Managers Association National President Darryl Perkinson.

The bill passed the House on Thursday and now heads to the Senate floor for final consideration before going to the President for his signature.

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On the Web:

Federal Managers Association -- FMA Applauds Approval of Conference Report Containing Measures Strengthening Civil Service

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