FederalDaily - February 10, 2006

TRICARE Increases for Younger Retirees

The Department of Defense (DoD) is proposing increases to TRICARE premiums and enrollment fees for working-age military retirees (under 65) and their dependents, DoD officials announced Wednesday. The health care portion of the DoD budget increased from $19 billion to $37 billion from 2001 to 2006, while the average military retiree contribution decreased to between 10 and 12 percent, said Dr. William Winkenwerder, assistant secretary of defense for health affairs. Currently, annual TRICARE enrollment fees are $230 for Self Only and $460 for Self and Family. The rates for under-65 retirees would change to the following:

• $325 (Self Only) and $650 (Self and Family) for enlisted retirees at or below the E-6 pay grade;

• $475 (Self Only) and $950 (Self and Family) for enlisted retirees at or above the E-7 pay grade; and

• $700 (Self Only) and $1400 (Self and Family) for all officer retirees.

The TRICARE rate increases, if approved, would go into effect during fiscal years 2007 and 2008.

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Senate Approves Postal Reform Legislation

The Senate has approved legislation that would reform the U.S. Postal Service (USPS), called the Postal Accountability and Enhancement Act. The bill was authored by Sens. Susan Collins, R-Maine, and Thomas Carper, D-Del. Collins and Carper said the legislation would help address the billions of dollars in unfunded liabilities that the USPS currently faces. They said in a joint statement that USPS reform is “crucial” and that “Under its current business model, the Postal Service’s financial future is not viable.” The bill has been endorsed by the National Association of Letter Carriers, the Rural Letter Carriers Association and postal supervisors associations.

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Fed Travel Expenses Criticized

Federal agencies are spending excessive funds on travel and meetings, Sen. Tom Coburn, R-Okla. said on Wednesday. Coburn, chairman of the Senate Subcommittee on Federal Financial Management, Government Information and International Security, held a hearing on the topic this week. The federal government expended $1.4 billion since 2000 to underwrite conferences or send employees to offsite meetings. “During a time of war, there’s no excuse for the excessive amounts of money agencies spend to attend conferences in exotic locations,” Coburn said. He added that agencies should make travel expenses publicly available on the Internet, and better utilize video and teleconferencing technology. For more on this story, see the upcoming Feb. 20, 2006, issue of Federal Employees News Digest. To subscribe, click here.

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Hearing Set for Appeal of New DHS Regs

After the Department of Homeland Security (DHS) was blocked from implementing new personnel regulations by a judge, the agency appealed. The Court of Appeals for the District of Columbia Circuit has set April 6 for oral argument on the appeal. Already, the National Treasury Employees Union (NTEU) has fought for and won an injunction blocking the regulations from taking effect. NTEU alleges that the new personnel regulations would illegally hinder collective bargaining, due process and appeals rights. NTEU President Colleen Kelley expressed confidence that the union will continue to win in its effort to prevent implementation of the new rules.

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