FederalDaily - June 20, 2005

Senate Looks to Recruit Federal Workers

Sen. George Voinovich, R-Ohio, has introduced legislation that would allow federal agencies and the military to repay student loans tax-free in an attempt bolster recruitment efforts. The Generating Opportunity by Forgiving Educational Debt for Service Act would amend the federal tax code to treat federal government and military student loan repayment programs in the same manner as loan repayment by graduate schools, which are tax-free. “There are many reasons why the federal government is not attracting the best and the brightest, this legislation will provide the opportunity for the government to recruit and retain well qualified graduates,” said Voinovich.

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FDIC Employees Victims of Identity Theft

The Federal Deposit Insurance Corp. (FDIC) announced Thursday that 5,900 of its employees had personnel information stolen from the agency. According to an open letter to FDIC employees, the information was obtained “without authorization by a person or persons outside the FDIC.” Colleen Kelley, president of the National Treasury Employees Union (NTEU), which represents nearly 5,000 FDIC employees, is calling on the agency to immediately obtain credit-monitoring services for all impacted employees for at least a year, or reimburse them for getting the services themselves. “NTEU strongly believes that the FDIC should be doing more on behalf of the employees,” said Kelley.

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House Committee Approves Civil Service Bill

Bills saving federal employees money on their health insurance costs and transportation benefits have cleared the House Government Reform Committee. A bill co-sponsored by Reps. Jon Porter, R-Nev., and Thomas Davis, R-Va., allows retired federal employees and military personnel to pay their federal health care premiums with pre-tax dollars. The bill also provides active duty military personnel with an income tax deduction for their supplemental insurance premiums. A separate bill sponsored by Rep. James Moran, D-Va., would require federal agencies to provide tax-free transportation benefits to federal employees in and around Washington, D.C., and also permits agencies to transport employees to and from mass transit stations.

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Private Contractors Blasted for Back Taxes

According to a Government Accountability Office (GAO) report, approximately 33,000 contractors doing business with the federal government owe over $3 billion in back taxes. According to GAO, of the 50 civilian contracting agencies investigated all had abusive and possibly criminal activity relating to their payment of federal taxes. In light of the report, the National Treasury Employees Union (NTEU) has called on the administration to bar those contractors with tax problems from doing business with the federal government. “This kind of blatant abuse of the privilege of serving the American people serves to disqualify these people,” said NTEU President Colleen Kelley.

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