Federal Daily - January 13, 2010
Unions Say Most Feds Would Be Hit By Proposed Health Care Tax
When it comes to healthcare reform, federal unions see a big fly in the ointment.
According to unions representing federal employees, a proposed excise tax on health care benefits could hit more than half of active and retired federal workers covered by the Federal Employees Health Benefits Program. Sixteen federal employee unions made their position known in a Jan. 12 letter to Congressional lawmakers who are crafting final national health care reform legislation.
The unions warned that FEHBP beneficiaries could face thousands of dollars a year in new charges if the excise tax is part of the final bill. Congressional leaders are considering the excise tax—a levy on high-value “Cadillac Plans”—as a way to help finance the reforms.
But the group said such a tax would disproportionately fall on workers covered by FEHBP, particularly when the value of all health care—including dental or vision coverage and flexible spending accounts—is counted toward the threshold amounts.
The National Treasury Employees Union, which is part of the coalition, noted that although the tax would not become effective until 2013—and its financial thresholds would increase every year—those increases very likely would not be enough to offset medical inflation.
“The result would have FEHBP enrollees facing benefit cuts, and higher premiums and co-payments as insurance companies simply pass along this increased cost,” said NTEU President Colleen Kelley.
To see more, go to: www.nteu.org.
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Federal Unions Join in Government-wide Coalition
Federal labor unions last year finally succeeded in convincing Congress to bring an end to DoD’s National Security Personnel System, which unions charged was unfair and lacked transparency. Now more than 20 unions have banded together to build on that success and continue to advocate for reforms in the broader federal workplace.
The efforts of the new Federal Workers Alliance, a coalition patterned after the United DoD Workers Coalition that fought NSPS, will help coordinate and unite the efforts of labor organizations to address a broad range of issues affecting the civil service. The 21 FWA member organizations represent more than 300,000 federal workers.
FWA’s top priorities in 2010 will include working with the Obama administration on implementation of the president’s recent executive order on labor-management partnerships.
National Federation of Federal Employee President William Dougan will serve as interim chair until the full FWA formally chooses a permanent leader. The coalition likely will select a permanent chair by the end of the year, Randy Erwin, NFFE legislative director, told FEND.
“This new alliance represents 13 of the 15 largest federal sector labor organizations in the United States,” Dougan said. “I am confident that the labor organizations of the FWA will work together to ensure the strongest possible voice for federal workers with the Obama administration and Congress.”
To see the full list of members, go to: http://tinyurl.com/yd9rw4g.
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DoD Retracts Retroactive Stop Loss Pay Offer for Some
DoD on Jan. 5 announced that retroactive special pay was no longer available for certain active, reserve and former servicemembers who volunteered to have their enlistment extended or retirement suspended due to the military’s stop loss program.
DoD launched the special retroactive pay in October. However provisions in the Fiscal Year 2010 Defense Appropriations Act prohibited such bonuses to “stop-lossed” servicemembers who voluntarily reenlisted or extended their service and received a bonus. The change was effective for those servicemembers who applied for the bonuses after Dec. 19; but DoD said it has no plans to recover bonuses to those paid before the Dec. 19 effective date.
Applications from affected servicemembers will be returned with an explanation of the change in law that made them no longer eligible, DoD said. Also, the appropriations act extended legal authority for stop loss special pay to continue payments to active-duty service members extended under stop loss authority through FY 2010.
To see more, go to: www.defense.gov/releases/release.aspx?releaseid=13063.
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USO to Build New Centers at Bethesda, Fort Belvoir
USO officials are planning to build family centers at the National Naval Medical Center at Bethesda, Md., and Fort Belvoir, Va., that will offer a place of respite to wounded servicemembers and their families.
The two centers will cost about $25 million to build. The USO plans to raise $100 million in donations to cover the cost of construction and to support the facilities’ continued operation, according to a press release posted on DoD’s Military Health System Web site.
Should fundraising go smoothly, the USO plans to begin construction this year with completion set for Sept. 15, 2011, the day Walter Reed Army Medical Center is scheduled to close. Walter Reed’s patients will move to Bethesda or Fort Belvoir.
The 25,000-square-foot facility at Bethesda will feature phone and computer banks where people can stay in touch with home, as well as places to get together, watch movies and sports, and play video games.
The Fort Belvoir facility will be slightly smaller (15,000 square feet) but will offer all the same accommodations. The larger Bethesda facility will get extra space to provide offices for organizations that provide services to wounded servicemembers and their families. Those support services already have space at Army buildings near the proposed Fort Belvoir site. USO of Metropolitan Washington, the local USO affiliate, will staff both facilities with full-time staff and volunteers, the release said.
To see more, go to: www.health.mil/Press/Release.aspx?ID=1108.
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