NASCOE Legislative Update – Federal Retirement

Below is a legislative update from Hunter Moorhead, NASCOE Legislative Consultant, with information on the House and Senate actions regarding federal retirement benefits and other budget actions. Please distribute widely to membership:


The US Senate has completed Committee consideration of the 2018 Budget Resolution. I’m pleased to report that it doesn’t include language impacting Federal retirement benefits. The full Senate is expected next week to consider the Committee’s budget resolution.  Following adoption by the full Senate, House and Senate negotiators will conference the two resolutions. At that point, the House will insist on including the retirement cuts and the provision will be negotiated between the two bodies.

BACKGROUND INFORMATION

President’s Budget:

On May 23rd, 2017, President Trump announced the Administration’s proposed FY 2018 budget request. In this request are proposals to make significant changes to the Federal Employees Retirement System and the Civil Service Retirement System. Included in the changes are:

  • Cost-of-living allowances for current and future FERS retirees eliminated.
  • COLAS for CSRS retirees would be reduced by 0.5 percent each year.
  • FERS employees would see employee contributions to their annuities increased by one percent each year for the next six years, without any corresponding benefit increase.
  • The FERS annuity supplement would be eliminated for new retirees starting in 2018.
  • Federal pensions would be based on the average of the highest five years of salary instead of the highest three.

Following the President’s FY 2018 request, the CBO argued that these changes would better align federal practices with those in the private sector through:

  • Basing pensions on five-year average earnings.
  • Many employers not offering health insurance benefits for retirees.
  • Many companies shifting from lifetime annuities to defend contribution plans that require smaller contributions from employers.

However, the CBO also noted that these changes would lessen the attractiveness of the overall compensation package provided by the federal government, potentially affecting the ability to attract and retain a highly-qualified workforce. Additionally, under the President’s proposed changes, positions requiring professional and advanced degrees may become harder to fill, private-sector counterparts already provide a higher compensation to comparable federal government positions.

Under the current budget circumstances and within the current political situation, it will be difficult for the President’s proposed changes to become reality. The President’s budget request is the first step in a long process to actually forming the budget.

House Budget:

On July 19th, 2017, the House Budget Committee approved their FY 2018 Budget 22-14. At this time, the House of Representatives has not yet scheduled floor or full House consideration of their Committee proposal.  However, Speaker Ryan has publicly stated that the House will consider the budget in September.

The House FY 2018 budget instructions dictate that the Committee on Oversight and Government Reform to submit changes in laws within its jurisdiction sufficient to reduce the deficit by $32 billion for the period of fiscal years 2018 through 2027. The House FY 2018 budget includes measures affecting changes to federal government retirement practices, including ending the supplement only for future retirees, how much to raise the required contribution, over how long a period, and whether it would apply to all employees, to reach this required $32 billion savings over the next 10 years.

The Budget committee report includes the language, “Reform Civil Service Pensions. The policy describes in the Income Support, Nutrition, and Related Programs section of this report would increase the share of Federal retirement benefits funded by the employee. This policy has the effect of reducing the personnel costs for the employing agency. The budget assumes savings from a reduction in agency appropriations associated with the reduction in payments that agencies make into the Civil Service Retirement and Disability Fund for Federal employee retirement.”

Additionally, the Report includes the following policy statement on the same, “Reform Civil Service Pensions. This budget adopts a policy proposed by former President Obama’s National Commission on Fiscal Responsibility. The policy calls for Federal employees, including members of Congress and staff, to make greater contributions toward their own defined benefit retirement plans. It would also end the ‘‘special retirement supplement,’’ which pays Federal employees the equivalent of their Social Security benefit at an earlier age. This would achieve significant savings while recognizing the need for new Federal employees to transition to a defined contribution retirement system. The vast majority of private sector employees participate in defined contribution retirement plans. These plans put the ownership, flexibility, and portfolio risk on the employee as opposed to the employer. Similarly, Federal employees would have more control over their own retirement security under this option. President Trump’s fiscal year 2018 budget calls for a phased-in increase to contributions federal employees pay into the Federal Employee Retirement System so that both employees and the government are contributing an equal amount.”

And finally, the Report encourages limiting Federal Health Coverage Funding for federal employees. It states, “currently, Federal contributions to the Federal Employee Health Benefits Program grow by the average weighted rate of change in these programs. This budget supports restricting the growth in these plans to inflation. It also proposes restricting Federal employees’ retirement benefits based on length of service, which would bring Federal benefits in line with the private sector model.”

Thanks,

Jackson Jones & Donny Green,
NASCOE Legislative Co-Chairpersons

2016 NASCOE Convention Q&A Session with Management

Management Panel: Val Dolcini, ADM, Chris Beyerhelm, Associate ADM, Greg Diephouse, DAFO, Darren Ash, FSA CIO, Radha Sekar, CFO, Thomas Mulhern, Director, HRD, Brad Pfaff, DAFP, Mark Rucker, DAM, Glen Schafer, BTO, Doug Nash, OCIO-CIO, Clinton Swett, Deputy OCIO

Q: What is the timeline for the new MPS and is that the only kind of printer that will be sent to the county offices?

A: Clinton Swett: There was problem with the original provider contract. There will be a MPS 2, and that contract should be awarded August 24, 2016, but any printers ordered will not come in until March 2017. There are many components in the process and it will take time to get that all in place.  Service Centers will be able to order the new printers. If you have a MPS 1 printer, you can keep until the end of 2017. If you don’t have any new printers, you will be able to get one after February 2017.  CTS provides the service and it will be up to Darren Ash to order, but the MPS saves about 40% of the cost of using a regular printer. FSA printed over 10 million pages and the department used only 13 million pages.

 

Q: What would it take to get sick leave eligible to donate?

A: Tom Mulhern: It would take an act of Congress

 

Q: It has been 28 years since Program Technicians have had an increase to a grade 7, when will it happen again?

A: Greg Diephouse: They are looking at program descriptions line by line to determine the level the program technician is working at and the position descriptions will be revised and then it will be examined for reclassification. Tom Mulhern: It is difficult to get new grades, and if it can be supported, it will be considered. The work group is working on this now.

 

Q: Are the states still limited on how many COC meetings can be held?

A: Greg Diephouse: States are funded for 8-10 meetings, but they are allowed to meet monthly, but not all counties meet monthly.

 

Q: Why did you choose to work for FSA?

A: Darren Ash: He had been at NRC for about 9 years and was ready to take on a challenge and liked the FSA mission.

 

Q: For 2014, there was a sweep in ARC/PLC to remove approval dates; can the sweep date happen based on the enrollment date rather than approving them individually?

A: Brad Pfaff: There is a difference between the allotment and the apportionment. When the sweep happened, it was due to the sequestration rate. Rahda Sakar: When the contracts were accepted we had not received funding; there was a sweep to make sure they were approved when funding was available. The sweep for this year should happen in September.

 

Q: The current GPS units will be going offline and that will create a problem with accuracy when using these units. When will TRIMBLE be released?

A: Darren Ash: He wants to go back and get additional data before committing to a timeline.

 

Q: Temporary employees hired after 1989 cannot buy back their time. Will this be changed?

A: Tom Mulhern: This has been addressed and some legislation would have to be changed in order for that to happen. Val Dolcini said they would work with OPM to address this situation and see what they can do.

 

Q: Windows 10 is to be installed soon and training will be needed to understand this system. What kind of training will be provided?

A: Doug Nash: Windows 10 will happen over the next couple of years as new equipment is installed. They will work on the training as the equipment is upgraded. They will communicate with FSA on training.

 

Q: When an update is done with a new producer, new farm, and  you go back to the business file you need to refresh that information but it takes out all the information on all their farms and it is necessary to re-load all that data.

A: Brad Pfaff: We will help get that fixed. Darren Ash: They will get the fix.

 

Q: What process do you use when a COC imposes a decision and what do you do to override the determination?

A: Brad Pfaff: He described the process of appeals and how it is done from the county level to the state level to the Washington DC level. They look at procedure and compare that to the appeal and if it possible to provide relief, then they do. If something is a violation, then DAFP looks at the situation surrounding the problem.

 

Q: Are there any plans to use retired employees?

A: Tom Mulhern: There is an act for hiring retired annuitant. It is a half time employment opportunity, but only about 1% would be able to be rehired. More information will be coming out on this issue. The notice has been issued on this subject. Val Dolcini: The mentor program using retired employees is something they are looking at in the succession planning process. Greg Diephouse: Work with the state office regarding managing this tool.

 

Q: CRP rental rates can be reviewed every two years. Why can’t we review the rental rates annually so they move with the current prices more reflectively?

A: Brad Pfaff: It does cost FSA to do the survey used for the rental rates. There are conversations on doing the survey annually and he will take that back to Washington.

 

Q: Are there discussions regarding allowing NRCS to edit our CLU layer?

A: Brad Pfaff: Yes those discussions are happening to have NRCS edit the CLU and SCIMS. Darren Ash: They are looking at the impact it could have allowing other agencies to have that type of access.  The goal is to have agencies be able to share information since we have common customers, but they are looking for an appropriate way to administer this.

 

Q: Could proration be done with BCAP funds because there is not enough money for this program?

A: Brad Pfaff: There has been a lot of interest in this program. There is $15 million available annually and this creates a challenge to administer this program. It is very limited what is available in this program. He wants to hear suggestions and comments to make the program better. The factor question can be considered to determine if this would be feasible.

 

Q: The furniture refresh project expired, but some offices did not get new furniture. Will they get some in the future?

A: Mark Rucker: If funds become available, they will continue this project. Chris Beyerhelm: With the new discipline about spending money, there will not be money left over at the end of the year to use in the furniture refresh. It needs to be worked into the budget so it happens all year and not rely on a surplus at the end of the year for such projects.

 

Q: There is some confusion regarding staffing ceilings. Can you clarify this?

A: Greg Diephouse: Two years ago we were 400-500 under ceiling and now we are at non-fed ceiling of 7228, so just over one hundred vacancies. Only 6 positions are left to work on.

 

Q: When will we be able to get credit in the county where the work is done?

A: Chris Beyerhelm: They are looking at this enhancement and they are planning a prototype in about 6 months.

 

Q: AGI’s have been sent to IRS and information came back and said it has been updated, but it has not been updated in the system, so it has to be re-sent and this takes a lot of time. Can this process be changed?

A: Brad Pfaff: They are working on trying to get answers from IRS on this issue and he would like to see it happen that the COF could put in a determination after a set amount of time. This is something they are working on. Val Dolcini suggested that this topic be discussed at the SED conference.

 

Q: Can the COC’s or STC’s look at the projected ARC rates and how this is determined? The projections are not good for some counties and this should not be happening.  This is really a problem with irrigated and non-irrigated land; they have to use the same benchmark for irrigated and the dryland producers would not receive a payment.

A: Brad Pfaff: They will look at the rates and they will have more discussion with Extension about releasing projected rates. If 25% of the crop is irrigated in a county, NASS usually breaks out the differences in irrigated and non-irrigated land, but in some states this is not happening.

They use NASS data and then to RMA and then to NASS district and then to the state committee when determining some yields. SED’s can submit documentation to justify a change, but STC’s do not have authority to adjust yields. Val Dolcini: This will probably be a 2018 farm bill issue, it will not be changed in the current bill.

 

Q: FSA employees are strongly concerned about NRCS having access to CLU and business partner applications. Can county committee members have access to new web 4.2 WebTA to approve time sheets?

A: Tom Mulhern: It will have to be discussed, from a technology perspective, it can be done, but the policy would have to be clarified.

 

Q: In the past, there was a person in USDA service centers to update LincPass. In many cases now, these centers are long distances away. Can a person in the service center do this?

A: Mark Rucker: At this time, the answer is no. An activation station would be required and most of this is a resource question. The only thing that can be done is a PIN reset on regular stations. You need a special station to do certifications.

 

Q: Temps are to be released on 9-30-16. Is there a way to keep them longer?

A: Greg Diephouse: They had a commitment to try and keep the temps until September 30 of this year. The farm bill money is mostly spent and there may be some money left for the next fiscal year, but there would not be much. Until more appropriations are secured, this would not be possible.

Chris Beyerhelm: If we want to have temps, we would have to give up something else. Val Dolcini: Many temps have become permanent employees, but it is a resources issue at this time. It looks like there will be a continuing resolution and it will have to be determined if there will be money for temps. We are 20% down on FTE’s from a few years ago, so we use temps more strategically to help where needed. States should not plan on temps at this point.

 

Q: Since grazing is required for emergency programs, can grazing rights be identified in CARS?

A: Brad Pfaff: Yes, this can be done, but he wants more information on the policy implications.

 

Q: There are offices in IL that are empty and rent is still being paid. Why?

A: Greg Diephouse: There is a law in effect that will not allow closing such an office. The legal language would have to be changed in order for that to happen.

 

Q: Thanked them for the employee satisfaction survey. Could there be a comment box to explain answers? 

A: Chris Beyerhelm: He agrees that we should be able to clarify answers. They will continue to try to have that added. In the meantime, employees can send comments to the staff that are present.

 

Q: When will the COC approval authority be restored in 2-CRP?

A: Brad Pfaff: There should be information released in the near future regarding this issue. This was an issue that Brad wanted to work on right away. A notice should be out in the next few weeks restoring this authority.

 

Q: Is it law that the IRS must verify AGI’s and can this be restored back to the county offices?

A: Brad Pfaff: This came out as a result of the improper payment act. This is a requirement that the IRS check the AGI’s.

 

Q: Facility loans for movable equipment and trucks are causing some banks to complain that they cannot match the interest.

A: Brad Pfaff: There will be training the week of August 8 regarding the new policy. Trucks under loan must be box trucks for cold or dry storage. We are not providing loans for semi’s. There is tremendous interest in helping growers to move their product to market, mostly fresh food and vegetable. This will provide a means to move the product. This is something the COC is involved in and they will review these applications. He believes this will help some regional problems in moving products. The producer always has the opportunity to obtain conventional lending.

 

Q: There is concern about the 3 year useable life for a truck and that this could result in producers coming in more regularly.

A: Brad Pfaff: There will be more training on this program. Val Dolcini: Please let management know if there are more complaints from bankers.

 

Q: Safe acres are limited; there are many applications but the acres are very limited. Is there any anticipation to increase SAFE acres?

A: Val Dolcini: There is a lot of interest in SAFE acres but those acres are under the conservation cap of 24 million acres and they are bumping up against that ceiling. They will be releasing information regarding the acres that could be available. They hope to have a more definitive answer by fall.

 

Q: ACRSI: Some agents were telling producers that they did not have to come to FSA at all if they certified with their agent. FSA certified the crop report and when it was submitted to insurance, the system messed up the crop reports in FSA. FSA certifies in hundredths and insurance certifies in tenths and this creates problems. Agents only care about the insured crops and this creates problems with non-insured crops.

A: Val Dolcini: ACRSI is an initiative in the current farm bill and they have been working on making this work between the agencies. The approach taken in the initiative, by starting with 30 counties and now up to 95% of reportable crops, seemed to be a good way to approach this situation. They utilized people from across the country to provide input. It is very important that the message is the same with the agencies involved. 95% of farmers come to FSA and then it is sent digitally to RMA at this time.  Precision Ag industry will be involved and must abide by the standards created for this program.

 

Q: AO-1660 requires language proficiency, why are we doing this?

A: Greg Diephouse: This will be addressed in the future

 

Q: Why are we not getting comp time given at time and a half for working with the producers?

A: Greg Diephouse: This is a state by state decision and they want to provide adequate compensation for work done.

 

Q: What is the significance of having death notices for people who died many years ago?

A: Val Dolcini: Congress mandated that we work with social security to track deceased producers and that is why these are coming up. Periodically, mass mailings are sent to deceased producers and this is an attempt to clean up the files.

 

Q: There is concern about the state DNR agencies changing their rules when working with conservation programs, burning, mowing, etc.

A: Val Dolcini: They work with land grant agencies in the states and NRCS is the technical agency and other agencies are partnered in this effort. They will look at this in the future.

 

Q: There is concern about NRCS doing FSA work on the CLU and business partner. There is also a problem with closing offices with no real data and justification based on workload rather than lack of staff.

A: Greg Diephouse: There are instances that producers may have to drive further for agency service, but there are cases where the office is in an isolated area, but at this time they cannot close offices. There are cases where the offices should be closed, but at this time that cannot be done.

Chris Beyerhelm: Using the criteria that Congress mandated was not based on workload but staffing and that should not have been the criteria, so this will be looked at in the future.

 

Q: On farms with less than 10 base acres, could those payments be made to beginning farmers?

A: Brad Pfaff: This is something that will be discussed. There is a beginning farmer initiative and this will be looked into. Brent Orr: This would take congressional action to change that statute.

 

Q: With regard to BTO, in many cases FSA is the point of contact, what are the future plans and the timeline for such.

A: Val Dolcini: This has been very successful and they want to expand this program further. There is a plan to expand this program so that all county offices can enjoy the benefits.

 

Q: Currently the county is in shared management and the CED retired, so now an adjoining CED must cover. Will CED’s be compensated for doing more?

A: Greg Diephouse: They will try and get to this issue.

 

Q: Fall reporting of winter wheat can be a problem to be done timely. Is there any way to do this regionally and not charge a late filed fee?

A: Brad Pfaff: They have worked with RMA on reporting dates. They have waived fees in the past, but that is not in effect at this time. The regionalization of reporting is something he would like to discuss.

 

Q: Why isn’t the DD getting input from the PT’s for CED reviews and likewise, the CED giving input on DD reviews and likewise upward?

A: Greg Diephouse: SED input comes to him throughout the year. He feels additional input is helpful, especially for the COC. At this time there is no formal process for this.

 

2016 Convention Reports

Cedar Rapids

The 2016 NASCOE Convention in Cedar Rapids, Iowa was a great success! If you were unable to attend, please read through the reports below to see what you missed. The questions and responses from the Q&A session with management will be posted in the near future. Thank you to IASCOE for hosting a fantastic convention!

President’s Report
Vice President’s Report
Secretary’s Report
MWA Report
NEA Report
NWA Report
SEA Report
SWA Report
Awards, Scholarships, and Emblems Report
Benefits Report
Legislative Report
Membership Report
NAFEC Report
Programs Report
Publicity Report

New Membership Contest Sponsored by DFS

Dillard Financial Solutions, Inc., NASCOE’s Benefits Provider, is offering a special membership drive for 2016 and beyond. The state with the highest increase in new members, including associate membership, from July 1, 2015 to June 30, 2016 will receive a $1,000 award sponsored by Dillard Financial Solutions, Inc. The state president will receive a plaque on behalf of his or her state association, presented by the NASCOE President at the National Convention. A traveling trophy will also be presented to the state to have for a year. Each year the winning state will have their name engraved on the trophy. States are ineligible for the contest in any dues year in which they received a NASCOE Jump Team assistance with their membership drive. Click on the link below to view an example of how membership increase points will be calculated. Good luck to all state associations!

Membership Drive Contest