Federal Daily - December 15, 2008

Most Feds to Get Day Off on Dec. 26

The Office of Personnel Management announced on Dec. 12 that Friday, Dec. 26, will be a day off for federal employees. The executive order from President Bush excuses most executive branch employees from duty on Dec. 26, but does not affect Postal Service workers or executive branch employees who cannot be excused for reasons of national security, defense or other essential public need. “The president values the many important contributions America’s federal employees make to ensure that the government runs smoothly and efficiently,” said Acting Director Michael W. Hager. “In the spirit of the season, President Bush is making it possible for these dedicated Americans to spend this four-day period with family and friends.”

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OPM: Pacific Region Feds Likely to Get Smaller COLA Hikes

Cost-of-living allowance (COLA) increases for federal employees living in the country's Pacific region are likely to be smaller next year, according to a report released Dec. 9 by the Office of Personnel Management (OPM). The report provides the results of the COLA surveys OPM conducted in the spring and summer of 2007 in Honolulu County, Hawaii County, Kauai County, Maui County, Guam—and the Washington, D.C., area, which is used as an index against which the others are measured. Although the cost of living, as measured by OPM, is greater in the Pacific region than in Washington, the difference has dropped since 2004. For example, Honolulu County’s 2007 cost-of-living index score was 121.37, down from 125.80 in the 2004 survey. For the surveys, OPM contacted about 1,300 outlets and collected approximately 5,500 prices on more than 240 items representing typical consumer purchases. OPM also collected about 2,800 prices on rental housing, the report said. Currently, COLAs in the Pacific region range from 17 percent to 25 percent; but new rates, which will reflect the survey results, have not yet been posted. “The results indicate a reduction in the COLA rates for all Pacific areas,” the report said. To see more, go to: http://edocket.access.gpo.gov/2008/pdf/E8-28833.pdf.

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Agencies Hold Refresher Course for Disabilities Hiring

The Office of Personnel Management (OPM) and the Equal Employment Opportunity Commission (EEOC) co-hosted a meeting which served as a refresher course to remind agencies how to provide assistance to those with disabilities who want to join the federal workforce. The Dec. 11 meeting of the Chief Human Capital Officers (CHCO) Council Training Academy focused on providing training to federal human resource professionals, and helping them to improve their skills in implementing federal disability hiring policy. The academy also highlighted useful disability programs and allowed participants to share best practices that help address disability hiring challenges. OPM and EEOC officials also reviewed hiring policies. Other participants included the Department of Veterans Affairs, which showcased its unified policy guidance and selective placement practices for individuals with disabilities, and the Department of Treasury, which detailed the development of a strategic and tactical alignment of their human capital practices. “While the decreasing participation rate of people with targeted disabilities in the federal government is troubling,” EEOC Chair Naomi C. Earp said, “programs like the CHCO Council Training Academy provide federal agencies with the knowledge and resources necessary to reverse this trend.” To see more, go to: www.opm.gov/news/chief-human-capital-officers-council-training-academy-focuses-on-assisting-americans-with-disabilities-in-joining-the-federal-workforce,1444.aspx.

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House Passes Bill to Suspend Retirement Withdrawal Penalties

Lawmakers urged the Senate to adopt a bill passed by the House which would temporarily suspend an excise tax assessed on seniors who fail to take a required minimum distribution (RMD) from their retirement accounts—including IRAs, 401(k)s, and 403(b)s. Retirees would get a break under H.R. 7327, which—if it becomes law—would impose a one-year moratorium on RMD rules that force the withdrawal of money from certain accounts. The bill passed the House Dec. 11. Rep. Rodney Frelinghuysen, R-N.J., and Rep. Spencer Bachus, R-Ala., called on the Senate to support the House-passed legislation, which could give retirement accounts an opportunity to recoup losses suffered as financial markets crashed this year. “Federal tax law should not force seniors to take money from their retirement accounts at a time when the value of their investments has plummeted,” said Bachus. In addition, the bill would ease funding requirements for employer-sponsored pension plans that would be forced to make increased contributions when they are very short on cash. The bill also includes temporary funding relief for multi-employer plans that have been negatively impacted in the downturn. The bill also would make nominal technical corrections to the Pension Protection Act of 2006. To see more, go to: http://frelinghuysen.house.gov//newsroom/index.cfm?subSec=4&id=268 or http://waysandmeans.house.gov/News.asp?FormMode=release&ID=834.

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