NCPASS

Sick Leave Slowdown

Legislation that would have allowed federal employees hired since 1984 to cash out their unused sick leave at retirement appears to have stalled this year in Congress. But those eligible for the benefit would be wise to hoard that sick leave a little longer since the measure's supporters are gunning for success in 2009.

"We're going to push hard for it [in 2009]," Austin Durrer, a Moran spokesman, said on Tuesday. "We should have a lot of opportunities to get it through the House again, and hopefully, with a robust majority in the Senate, we'll get to see some action."

Durrer said Moran would pursue all opportunities to enact the sick leave legislation through a stand-alone bill or language attached to an appropriations bill or other legislation next year.

The question is what shape the sick leave benefit would take. The provision that passed the House as part of the tobacco bill was more generous than the stand-alone bill Moran originally proposed. That measure (H.R. 5573), introduced in March, would have granted FERS retirees a one-time payment of up to $10,000 for any sick leave balance of more than 500 hours. Many federal employees argued that the original benefit did not go far enough.

The House-passed legislation, however, would have provided FERS employees retiring during the first three years credit for 75 percent of their sick leave, while those retiring later would have been able to count all their unused leave. The cost of this enhanced benefit -- estimated at $70 million for five years and $337 million for 10 years -- would have been offset by another provision of the tobacco bill that would have added a Roth 401(k) option for participants in the Thrift Savings Plan.

Jessica Klement, legislative director of the Federal Managers Association, said on Tuesday that granting FERS employees credit for unused sick leave would be the top priority for FMA and the Government Managers Coalition in the next Congress. "We'll have to figure out where we want to go ... but any sort of credit is better than none," she said.

Klement said it may be possible to grant FERS employees full credit for unused sick leave in a stand-alone bill, but noted that first it would require a discussion with Moran's staff.

"We're really encouraged by the action of the 110th Congress, but we believe we can go even further in the 111th," Klement said.

Fed Employees Sick Leave Benefit Legislation Introduced

Washington, D.C., Congressmen Jim Moran (VA-8) and Frank Wolf (VA-10) introduced legislation MArch 10th. providing federal employees under the FERS retirement system the ability to cash out their remaining sick leave at retirement.

Highlights of the benefit:

• The incentive will provide a lump-sum payout up to $10,000 to employees under the FERS system for unused sick leave upon their retirement.                                                                              
• Employees receive 15 percent of the value of all the accrued sick leave at their final salary.
• The benefit begins for all hours of accrued sick leave exceeding 500 hours.  If a person has 2,000 hours of accrued sick leave, he or she will receive the payout for 1,500 hours of benefit.
• *The 500 hour threshold provides employees an incentive to accrue at least 500 hours or roughly 3 months of sick leave, in case of long-term illness or disability -- so that it is available if needed. 
• Covers ALL federal employees included in the FERS system, and will include those covered under the Foreign Service Pension System, and United States Postal Service. 

Examples of how the benefit will work:

• GS 12, Step 10 making roughly $75,000 in 2008 with 1,250 hours sick leave accrued: $4,000 payment received upon retirement.

Sick Leave Saga

FERS employees want credit for their unused sick leave in retirement. Lawmakers may be listening.

Article here Sick Leave Saga by Brittany R. Ballenstedt

Labor Union requests Mid-year Mileage rate hike

The National Treasury Employees Union sent a 2 page letter to the acting IRS commissioner requesting an unusual mid-year increase and the mileage reimbursement rate for federal employees.

The argument was made that the increased gas prices are hurting employees and the rate should be adjusted as prices are expected to continue to rise.

GSA sets the rate for travel by federal employees but their rate is capped by the one set by the IRS. Therefore, the IRS would have to increase their rate before the GSA could move theirs up.

Take note that last year the NTEU also requested a mid-year increase that was essentially ignored. The only time it's ever been moved mid-year was after Katrina in 2005.

Changes in the works at TSP

Much talk is on-going about new ideas with the TSP program. Some of the items include a Roth-IRA addition as well as setting the default to the Life-cycle programs.

The biggest thing being considered is automatic enrollment for new employees.

Things that you will begin to see in the near future are password changes that include the use of numbers and letters. Annual statements will be sent out beginning next year (They will include 2007 activity). And the transition from SSN for log in to actual account numbers.

What do you think about each of the changes/proposed changes? Sound off and lets see what the general temp is on each.

Ben

CSRS Retirees...FICA pension offset going away?

Well not yet at least, and there will be some stipulations if it makes it through Congress....

Full Story Here

--I apologize for the snippet stories and links....I'm a bit under the weather and can't seem to kick the bug--

Ben

New Comp Time rules for Travel

GovExec has the story.

Travel during a Holiday = NO Comp time because it is otherwise compensable (Little unclear as to the idea behind this but I'll see what I can find)

New regs go into effect 5-17-07

This is only for Title 5 covered employees (No wage grade, SES, FSO employees are covered).

Travel for Union business, job/location change not eligible.

You have 26 pay periods to use it (i.e One Year) but there is a stipulation if an emergency inhibits your ability to take it.

The volitility of TSP

May of us have no experience with the stock market and its tendency to fluctuate on many compounding factors. Some of us try to beat the odds and shuffle our money around before the dreaded downturns we have experienced. And considering what some of us carry in our account a move can potentially save you tens of thousands of dollars.

With the recent downturn in the market I thought I'd throw this link up on TSP. It is NOT affiliated with the TSP fund or the federal government. Its run by an individual that invests in TSP, and watches the market. Here's the skinny on the site. Take a look around and see if any thing catches your eye.

TSP Talk.com

FEDVIP changes?

It looks as if the enrollment for the new Dental and Vision plans far exceeded the estimates. Projections in 2004, the year Congress authorized the program, were about 200,000 enrollments in the dental and significantly lower numbers for vision.

However, after open season closed in December the dental portion saw over 400,000 people sign up. Vision exceeded 300,000.

This could be good for people in 2008 since the premiums set for the 07 year were based on these projections. Since enrollment was nearly double, we could see a decrease in plan premiums next year. Don't take this for fact though since there are many factors involved with setting the prices. A Congressman from Virginia sent a letter to the OPM asking that they use the greater numbers to get the best benefits at the lowest price for the next plan year.

OPM begins talks with the providers at the end of May. By mid August this should be completed.

Ben

GovExec Article

By the way, I want to hear from everyone what their experiences are with the new Dental and Vision plans. Complaints? Praise? Etc?

Retirement? Now or Later?

GovExec has a decent article about why people retire as soon as they are eligible and why some people hang around for a few years after they could have gone.

There is also a bit about what you should factor in when making the decision to leave. They use some example scenarios to convey a few calculations.

There is also a link to the National Institute of Transition Planning Inc. which provides retirement seminars and help.

Article Link