FederalDaily - June 2, 2005
New Rules on Long Term Care Insurance
The Office of Personnel Management (OPM) issued rules relating to the Federal
Long Term Care Insurance Program (FLTCIP) in the May 27 issue of the Federal
Register. After the interim regulations on FLTCIP were issued in February 2003,
OPM received nine comments. Two suggested that the definition of “qualified
relative” be broadened to include domestic partners of federal employees,
but OPM decided not to do so. Other comments suggested changing a provision that
gives insurance companies complete discretion to decide who is eligible for such
insurance. But OPM said if everyone was guaranteed insurance, the premiums would
increase, which would jeopardize the viability of the program. The May 27 regulations
reflect changes to FLTCIP made in a law passed in 2003—two new groups,
and their qualified relatives, are now eligible to apply for insurance under
the program: separated federal employees with title to a deferred annuity, and
retired “grey” reservists. To read the new regulations, go to: www.opm.gov/fedregis/2005/69-052705-30607-a.htm.
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Request for USPS Audit Information
Sen. Chuck Grassley, R-Iowa, is asking for reports on how the U.S. Postal
Service (USPS) is improving financial management following recent news of a
possible postal rate increase and alleged excessive payments by USPS when its
employees relocate. Grassley issued a statement saying he wants to shine the
spotlight on the Postal Service to make sure any increase in the cost of stamps
is not wasted by poor management. He asked the USPS inspector general (IG)
on May 31 to provide the Senate Committee on Finance, which Grassley chairs,
with the results of the IG’s audits of the systems used to allocate cost
and revenue in the rate-making process.
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FAA Purchases Are Costly and Untimely
In its annual report on the Federal Aviation Administration’s (FAA)
major purchases, the Department of Transportation’s Office of the Inspector
General (OIG) said FAA’s projects are costing more and taking longer
than expected. In a report issued on May 26, the OIG said after reviewing FAA’s
air traffic modernization programs, it found that 11 of the 16 projects reviewed
will have total cost growth of about $5.6 billion, and nine of the 16 will
have schedule slips from two to 12 years. Two programs have also been deferred.
The OIG said it is critical for FAA to get a handle on major acquisitions and
determine how much they will cost and when they will be completed.
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Debate over Outsourcing Finance Employees
Sen. Paul Sarbanes, D-Md., and Rep. Jim Moran, D-Va., are making an effort
to protect the jobs of employees in the Department of Housing and Urban Development’s
Financial Reporting Division (FRD). The American Federation of Government Employees
(AFGE) praised their efforts. In a recent outsourcing study, the federal employees
working at FRD won the competition to keep their work. But Eddie Eitches, president
of AFGE Local 476, said the work should never have been considered for privatization
in the first place. FRD prepares and submits accounting, financial and budgetary
reports for more than 70 programs with combined annual budgets of $35 billion,
he said. Sarbanes and Moran said the work is inherently governmental and should
not be competitively bid.
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