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FederalDaily - July 20, 2005

Troubles with DoD Pay
TSP Lifecycle Funds Available Aug. 1
Liaison Program for Air Traffic Controllers Terminated
Studying Deployment-Related Illnesses

Troubles with DoD Pay

The Department of Defense’s (DoD) military compensation system has become an increasingly complex and piecemeal accretion of pays, allowances, benefits and special tax preferences, according to a new Government Accountability Office (GAO) report. The report says DoD leaders have expressed concern that rising compensation costs may not be sustainable in the future. GAO said it is time for a review of all federal programs to ensure that they are successful, including DoD. Programs that aren’t successful should be cut or reformed to save money. For now, DoD cannot (1) identify the total cost of military compensation to the U.S. government or (2) assess the allocation of total compensation investments to cash and benefits. But GAO did say in fiscal year 2004, it cost the federal government about $112,000, on average, to provide annual compensation to active duty enlisted and officer personnel.

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TSP Lifecycle Funds Available Aug. 1

The Federal Retirement Thrift Investment Board announced on July 18 that Thrift Savings Plan (TSP) Lifecycle Funds will be made available to participants beginning August 1, 2005. Lifecycle funds are asset allocation portfolios with investment mixes tailored to a participant’s target time horizon. The target horizon is the time when the participant intends to withdraw the funds. As the withdrawal date approaches, the lifecycle fund’s investment mix automatically becomes more conservative (i.e., less risky). Participants who select lifecycle funds do not need to reallocate their account assets to achieve this result; the lifecycle investment models automatically reallocate the accounts for the participants.

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Liaison Program for Air Traffic Controllers Terminated

The National Air Traffic Controllers Association (NATCA) and the International Federation of Air Traffic Controllers’ Associations (IFATCA) are upset over a Federal Aviation Administration (FAA) decision to end the Controller Liaison Program. The program was established in 1997 to give FAA employees a way to provide the agency with their input. But on June 28, Joseph N. Miniace, FAA’s deputy assistant administrator for Strategic Labor Relations, sent NATCA a letter saying the liaison assignments are terminated effective July 29 because of budget constraints and the implementation of a new organization called the Air Traffic Organization. “We are no longer able to justify a need to continue liaison support,” Miniace wrote. IFATCA issued a statement saying it condemns FAA’s action.

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Studying Deployment-Related Illnesses

The House Subcommittee on National Security, Emerging Threats and International Relations held a hearing on July 19 to assess Department of Defense (DoD) efforts to collect and analyze Occupational and Environmental Health Surveillance data for deployed forces. The hearing focused on the findings of a new Government Accountability Office (GAO) report, which can be read at www.gao.gov/new.items/d05632.pdf. Past GAO work determined that DoD efforts to determine the cause of deployment-related illnesses have been hampered by: incomplete medical surveillance, limited information on troop location, lack of data on the extent and duration of specific exposures to environmental hazards and the accuracy of recordkeeping on health status before and after deployment.

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