OCC Pay Banding to be Revisited

On December 9, 2009, President Obama signed Executive Order 13522 that requires agencies to establish meaningful labor/management forums in which they will exchange ideas on important work related issues.  Within the spirit of that order, OCC Management has notified NTEU representatives that it has revisited the issue of pay banding in response to the issues raised in the 2008 employee survey by Watson Wyatt.  Management has been working for several months in developing a proposal and is now requesting NTEU feedback on that decision and implementation.  NTEU is seeking clarification on a number of issues and will be offering management our suggestions on their proposal.  NTEU conceptually views management’s initial proposal favorably. 

While management has requested our feedback, they are under no legal requirement to bargain on this issue.  Consequently, we will be interested to gauge their interest in our feedback as they complete their decision-making process.  In the interim, it would be premature to release details, as to do so would promote rumors and speculation.  NTEU will recommend that any proposal must create additional benefit to OCC employees and that nobody should be penalized relative to their current pay or status.  As with any proposal, the devil is always in the details and many of the details have not been fully developed.  NTEU will keep you posted when and as they emerge.

We would encourage employees to express any thoughts they have relative to pay banding by writing us at our website.  Employee feedback will be important in this process. 

Favoritism in Promotions and Awards    

The Merit Systems Protection Board (MSPB) has issued a new report that says 72% of federal employees believe that promotions are based upon who they know.  Only 40% cited competence as a reason for advancement, and 36 percent credited hard work.  In addition, 78% of the respondents said it was important to have contacts who knew the selecting official.  That is up from only 38% in 1992.  The report noted similar reactions to questions about awards and pay increases.

MSPB plans to investigate whether perceptions of favoritism are based on flawed practices, whether they stemmed from a failure to give candidates enough information about why they were not selected for a promotion or a raise, and how they could improve in either scenario. 

Student Loan Forgiveness

NTEU has continually advocated a student loan forgiveness program at the OCC as a way to build loyalty and retention.  President Obama in his State of the Union message stated “no one should go broke because they chose to go to college.”  He proposed a program that would limit student loan payments to 10% of an individual income and forgive their remaining debt after 10 years of public service.  We believe the OCC should continue to consider a student loan forgiveness program and not wait for possible legislative action.

Be Sure To Check Your Earnings and Leave (E&L) Statements

NTEU reminds employees to look at your leave and earning statements to ensure accuracy.  Many changes occur at the beginning of the year and you should not assume any changes are entirely accurate.  It is also a good time to reexamine income tax withholdings, TSP and 401(k) withholdings, and changes to your insurance coverage.  You should refer any questions to your HR office.

TSP and 401(k) Contributions

The maximum limit remains $16,500 this year.  Employees who will be 50 or older by the end of 2010 can make an additional “catch-up” investment of $5,500.  However, you must actually make that catch-up election, for those eligible and wishing to make such investments.  If you did not before the end of 2009, you may have noticed an unexpected increase in your take-home pay as a result of the contribution disappearing. 

Also, be aware that, in your first pay period E&L, you will see a cumulative contribution total of two pay periods.  As you were paid in calendar year 2010 for the last pay period of 2009, that last pay period contribution is counted as your first contribution for 2010.  Similarly, the contribution for the last pay period this year in 2010 will count toward the calendar 2011 contributions.  If you make fixed dollar contributions to your TSP and/or 401(k) to ensure they stay within the $16,500 limitation, this would be a non-issue. You just need to be sure you stay within that limit for the year, as you could lose an agency matching contribution if you reached the threshold too soon.   

Bill seeks to Control Prescription Drug Costs

NTEU is enthusiastically endorsing HR-4489 introduced by Stephen Lynch (D-MA).  The bill would require pharmaceutical benefit managers (who act as intermediaries between drug makers and insurance companies) to pass along to the insurance companies more of the savings achieved through rebates and incentives from the manufacturers.  It would also impose certain caps on drug prices and make the process more transparent. 

Prescription drugs prices are annually cited as the major contributor to premium increases.  It has been noted that prescription drugs are more expensive in the Federal Employees Health Benefits (FEHB), than in other government run insurance programs such as the VA medical system.  This bill seeks to correct that inefficiency by leveraging the collective power of the FEHB. 

As always we want to hear your feedback, good, bad or indifferent. Write us at this website.

A seat at the table, professionalism and fair and equitable treatment of employees…union values that you can count on (through out the year)!!!