May 20, 2008
A summary of daily news relevant to the federal workforce produced by the
Partnership for Public Service.
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Student Loan Repayment Benefits Hit $42M
Federal Computer WeekBy Florence Olsen
Federal agencies spent more on student loan repayments last year to
attract and retain employees than in any previous year, according to the latest annual report to Congress on the repayment program.
The government used the repayment benefit program to substantially increase its criminal investigator workforce last year. It also used student
loan repayments to hire or retain 219 information technology management specialists and 143 contract specialists.
In fiscal 2007, 33 federal agencies gave 6,619 employees more than $42 million in student loan repayment benefits, according to the Office of
Personnel Management’s 2008 report on the federal student loan repayment program. That amount represents a 15 percent increase in the number of
employees receiving student loan repayment benefits compared with the previous year and a 17 percent increase in agencies’ overall spending on
loan repayments. The average repayment benefit last year was $6,377.
The limit on loan repayments is $10,000 per employee per year and no more $60,000 for any individual employee in the program. Employees must agree
to remain at least three years at the agency that repays their loans.
The OPM report notes that the Defense Department used the student loan repayment program last year to provide nearly $6.3 million in student loan
repayment benefits to 1,860 employees. DOD offered the benefit to 871 employees in engineering positions, including 262 mechanical engineers, 166
nuclear engineers, 100 electronics engineers and 72 electrical engineers. It also provided the benefit to 109 contract specialists and 75 information
technology specialists.
This year’s report lists several best practices that agencies have found useful for administering the student loan repayment program. For
example, the State Department recommended that agencies provide central administrative control over repayment funding and limit loans eligible for
repayment to loans taken out for education already completed by the employee.
State established a Web-based application and database for its student loan repayment program. Except for lender statements, the online system has
eliminated the use of paper documents.
Eighteen agencies reported that lack of funding prevented them from using student loan repayments as a recruitment or retention tool. However,
some agencies said they do not use the program because positions they have are not specialized or difficult to fill.
Lawmakers Seek Curbs on DoD, Intel Contractors
Federal TimesBy Elise Castelli
Lawmakers have taken the strongest steps yet in recent years to
rein in federal contracting.
In bills to authorize the Defense Department and intelligence agencies, House and Senate lawmakers have called for a three-year ban on outsourcing
Defense Department civilian jobs, new boundaries on what work can be outsourced, and new curbs aimed at preventing conflicts of interest when
contractors assist agencies with their procurements.
“Contracting oversight and accountability issues remain a concern,” said Rep. Ike Skelton, D-Mo., chairman of the House Armed
Service Committee. His committee approved a Defense authorization bill that calls for a new definition of what’s inherently governmental work,
would hold contractors to the same ethical standards as federal employees, and enact reforms recommended by the Gansler Commission, which called for
an overhaul of the Army’s contracting in war zones.
Government outsourcing also was a key focus of the authorization bills.
“In response to the Defense Department’s increasing reliance on contractor services, this mark requires a comprehensive analysis of
what constitutes an ‘inherently governmental function,’” said Rep. Solomon Ortiz, D-Texas, chairman of the House Armed Services
Readiness Subcommittee.
Senators who approved the intelligence authorization bill voiced strong concerns that intelligence agencies are outsourcing tasks that are
inherently governmental.
“The CIA has used contractors for interrogations, as [CIA Director] General [Michael] Hayden admitted in an open, public hearing,”
Sen. Dianne Feinstein, D-Callif., said in a Feb. 13 statement. “So the CIA has outsourced what is an inherently governmental function of
questionable legality and morality.”
One measure in the Defense authorization bill — which has prompted a sharp outcry from the White House — would ban the Defense
Department from conducting public-private job competitions, also known as A-76 studies, for three years.
The bill, which the committee passed 61-0 on May 14, would halt the competitions “to ensure that the services’ operations are fully
met” while troops are fighting abroad and the department is transforming at home,” the committee said in a news release.
“The administration would strongly oppose language that would prohibit the department from considering public-private competition and
interfere with its ability to manage resources in the most cost-effective manner possible,” an OMB spokeswoman said in response.
“Imposing a moratorium because of the potential impact on other department initiatives is unnecessary and inappropriate as the department
already has authority, and has used authority, under circular A-76 to cancel competitions when in the best interest of the department to do
so.”
The American Federation of Government Employees, which has pushed for competitive sourcing restrictions in recent years, applauded the prohibition
introduced by Rep. Nancy Boyda, D-Kan. “We are strong supporters of the Boyda amendment,” said John Threlkeld, legislative affairs
representative for AFGE.
Stan Soloway, president of the Professional Services Council, said the ban on A-76 undermines the Pentagon’s ability to find efficiencies
and cost savings.
According to OMB, Defense has saved $7 billion through competitions held between 2001 and 2007.
The A-76 ban is the most aggressive move lawmakers have attempted so far to limit the controversial practice of job competitions. Last year,
Congress passed many measures curbing the practice, including: barring public-private competitions at some agencies; granting protest rights to
federal employees who lose competitions; and excluding federal health benefits costs from agencies’ calculation to determine the winner of a
jobs competition.
To read the entire article, click here.
Tax-Free Roth Option Proposed for Savings Plan
The Washington
PostBy Stephen Barr
Three House members who oversee the Thrift Savings Plan have proposed opening the program to new investment options, including a Roth feature that
would allow tax-free withdrawals of retirement savings.
The proposal, in the form of a bill drawn up for discussion purposes only, would also require agencies to automatically enroll new employees in
the TSP and, if they did not select an investment, place them in an age-appropriate "life-cycle fund" instead of the current default option -- a
short-term government securities fund.
Reps. Henry A. Waxman (D-Calif.), Danny K. Davis (D-Ill.) and Tom Davis (R-Va.) sent their proposal Friday to the Federal Retirement Thrift
Investment Board, where officials took it up yesterday. Waxman is chairman of the House Oversight and Government Reform Committee, and the Davises are
key members of the panel.
"We regard the TSP as the premier retirement savings program in the nation," the three said in a letter to Andrew M. Saul, the thrift board
chairman. "But we also recognize that the law creating the TSP was enacted over 20 years ago and has been only infrequently updated. The provisions in
the discussion draft reflect ideas for modernizing and strengthening the TSP that we believe merit additional consideration."
Groups representing federal judges and military personnel have expressed interest in adding a Roth option to the TSP, a 401(k)-type program for
government workers.
Currently, TSP participants make tax-deferred contributions, and those savings plus any earnings are taxed upon withdrawal, usually in retirement.
Contributions to Roth plans are made after taxes have been paid; those savings and their earnings are withdrawn tax-free. That makes a Roth option
especially attractive to people who expect their income to rise over time, putting them in higher tax brackets.
To read the entire article, click here.
Department of Defense Announces National Case Study Competition Winner
U. S. Department of Defense
The Department of Defense recently announced that a University of Illinois at Chicago student team has been selected as winners of the DoD
National Case Study Competition. The team developed a prototype foreign language skills recruiting strategy for YouTube posting.Students from more
than two hundred and sixty colleges and universities participated in this nationwide competition that challenged the creativity of America's students
and gave them the opportunity to apply skills learned in an academic environment to real world DoD issues. Each team was required to develop a
comprehensive recruiting strategy focused on identifying U.S. citizens who speak a foreign language and possess critical skills necessary to fulfill a
variety of DoD civilian positions. Elements of all the case studies presented could be used in a large-scale national recruiting program, which will
be implemented by the DoD in 2008-2009. The DoD National Case Study Competition is just one innovative marketing and recruitment initiative used to
attract America's best and brightest students to consider public service within the DoD. Click here to read more.
Celebrate Public Service at a Washington Nationals Game!
The Partnership for Public Service
Join the Washington Nationals and the Partnership for Public
Service as we celebrate public service this summer -- come cheer the Nationals on to victory! Get discounted tickets for three summer games --
click here to purchase
through the Partnership for Public Service. You do not need to be a federal employee to receive this discount.
Discounted tickets are
available for games on:
- Saturday, May 24 vs. Milwaukee Brewers
- Saturday, July 12 vs. Houston Astros
- Saturday, September 20 vs. San Diego Padres
Discounted ticket prices are:
- RF Mezzanine: $33 (Normally $38)
- Scoreboard Pavilion: $24 (Normally $29)
- Upper Infield Gallery: $15 (Normally $20)
