NEWS FOR AND ABOUT EPA EMPLOYEES INSIDE: ~ EPA FERS ~ Social Security Info ~ Lump-Sum Bite VOLUME 4 NUMBER 7 July 1987 Coming Crunch on SS Information Federal workers trying to compare Social Security benefits under CSRS and FERS pension plans need to move fast if they want an official statement of their SS coverage and work history. The Social Security Administration (SSA) expects to be inundated later this year when requests during the July 1-December 31 FERS conversion period come pouring in. Under legislation passed in 1983, the Social Security payoff to many federal workers will be cut, especially if they remain in the CSRS pension plan. The new FERS plan could minimize the impact of the windfall-offset law, meaning workers would get a bigger Social Security check. During the open season, workers must decide whether to stick with the old plan—in which benefits are based on salary and seniority—or to move into FERS, a private-sector-type pension program combining Social Security, a somewhat less generous federal pension, and an optional employer-employee matching tax-deferred savings plan that is one of the nation's most munificent. Employees need an official year-by-year breakdown of their work history showing when they paid into and were covered by Social Security in order to calculate which plan best protects any Social Security benefit they have earned. The SSA will supply the data within three to five weeks of your request, provided it hears from you by mid-August. A Form SSA-7004 FERS, available at EPA's personnel office, should be filled out and mailed at once. ~ Jaws V: The Lump-Sum Bite Federal workers who retire early and take the lump-sum option will have to pay an additional 10% tax on their money, according to the Internal Revenue Service. Under legislation approved last year, federal retirees can elect a lump-sum payment equal to what they contributed to their pension fund while on the job. Normally, that would be about 7% of lifetime federal salary. Moreover, the law eliminated the three-year-recovery rule, which allowed retirees to draw untaxed benefits until they had recovered all their previously taxed pension contributions. For most the tax-free period lasted from 6-36 months. New rules force retirees to pay taxes right away on the main portion of their annuity, which is based on the government contribution. The precise amount is based on the estimated lifetime benefits in terms of average life expectancy. The IRS is also working on guidelines that will impose still another 10% tax penalty on lump-sum payments taken by persons who retire before age 55. ~ EPA Leads in FERS Investments According to the Thrift Investment Board about 50% of those who are investing up to 10% of their salary in the new federal employee tax-deferred investment program are 35 or younger. The thrift fund is growing at a rate of more than $1 million a day. One reason so many young employees are participating is that they are recent hires covered by the generous investment options of a new pension plan set up explicitly—but not only—for them. The investment plan is part of the new Federal Employees Retirement System (FERS). It covers the bulk of post-1983 hires. Its generous investment options allow workers to invest up to 10% of pay (a maximum of $7,000 this year); anyone putting in 5% or more gets a 5% government match that is also tax-deferred. All FERS employees have accounts opened for them and get a regular 1% contribution from the government each pay period whether they invest or not. The highest proportion of new employees putting money into their own investment accounts—48%—is right here at EPA! Starting July 1, employees covered by the old CSRS pension plan will have the option of moving to FERS, trading slightly reduced civil service pension benefits for the right to invest more in and get matching government contributions to their accounts. Those who stay in CSRS can invest only 5% of pay, with no matching contribution. Lower-income employees and those outside the Washington area have been slow to sign up for the investment option, even though it is equal to or better than similar plans offered most workers in the private sector. ~ ------- People Special Act Awards Wafer Larry Anderson, Jennifer Orme, Wanda Knight, George Enyeart Resecic/i and Development Gerald Rausa, Henry Thacker, Shirley Simple, Said Abdul-Salaam, Ann Alford-Stevens, Harold Barnes, Leland Baskin, Robert Borgwardt, Ann Brice, John Brugger, Steven Broderuis, William Budde, Frank Butler. Anthony Carlson. Robert Carsel. Neil Chernoff, Larry Claxton, Faith Cole, Emile Coleman, John Couch, Waldemar Deben, George Ditsvvorth, Frank Freestone, Peter Gabel, William Hogsett, Donald Horstman, Dennis House, Jeff Inmon, Samuel Karickhoff, Clinton Kawaniski, William Kaylor, Michael Kohan, Robert Kovlock, W.S. Lanier, Robert Lewis. Joellen Lewtas. Matthew Lorber, William McClenny, William McDonald, John Meier, Kenneth Morris, Donald Mount, James Mulik, Lee Mulkey, Jean Munch. Teresa Norberg-King, James O'Callaghan, Paul Ringhand, Ellen Rogers, Shahberg Sandhu, Judith Sauch, Patricia Scholtzhavier. Donald Schultz, Merritt Sink. Robert Spehar, Robert Steicher, Richard Swartz. David Tingey, Ira Wilder, Nancy Wilson, Lee Wolfe, James Yezzin, William Watkinson, Gilman Veith, Patricia Schmieder, James McKim Office of the Administrator Joan Graham Administration and Resources Managemenl John Showman, Paul Graves, Ronald Bachand, Bryon Griffith Pesticides and Toxic Substances Guynin Myers, Diane Lowery, Tony Ellis Solid Waste and Emergency Response Donald Kraft, Joseph Bahnick, Rosalie Elliott Policy.Planning, and Evaluation Irwin Auerbach, Suzanne Wells Around EPA Sustained Superior Performance Awards Office of the Administrator Joanna Foellmer External Affairs Lawrence Stirling Solid Wasle and Emergency Response Marie Jones, Marcella Depont Pesticides and Toxic Substances Martin Kovacs Policy, Planning, and Evaluation John Chamberlin Enforcement and Compliance Monitoring Sylvia Miller Reassignments Joseph E. Lees, former senior legal and policy advisor to the Assistant Ad- ministrator for Air and Radiation, joined the staff of Lee Thomas and Jim Barnes as a special assistant beginning June 29, 1987. Before coming to EPA, Lees was with the Department of Justice. He also practiced environmental law with a major firm in Houston, and is an experienced air pollu- tion engineer. In addition, John Ul- felder, who has been hand- ling OAR issues for the past six months, resumed his responsibilities as a 12th floor special assistant for OPTS and OECM mat- ters, effective June 29. Home Relocation Assistance Program Through the efforts of the Office of Human Resources Management, a one-year pilot study for a Home Relocation Assistance Pro- gram has been initiated for eligible employees. The pilot study started May 1 and will run through April 30, 1988. Bill Henderson, Director, OHRM, says the program benefits will in- clude: guaranteed home purchase at appraised mar- ket value, assistance to em- ployees in marketing their homes, property manage- ment of homes should they not wish to sell, and assistance in finding a new mortgage and in determining whether to purchase or rent. Eligibility is limited to current or newly selected SES members, participants in the SES Candidate De- velopment Progam and em- ployees being transferred or reassigned to RTP, Denver NEIC and Regions 3 or 10. Bill Laxton, Deputy Direc- tor, OARM-RTP will administer the program. Questions should be di- rected to Stacy Blackman, FTS 629-4391 or Mike Thorne, FTS 629-4391. Years to Life; Life to Years The HQ Health Unit dis- seminates vital information on public health issues through the medium of health seminars and lec- tures. By taking charge of your health and dropping destructive habits (smoking, sedentarism, heavy drink- ing, insufficient sleep, con- sumption of saturated fats, sunolatry, failure to get an annual check-up, etc.) you may add dynamic decades to your life. For information on the seminars and lec-^ tures, and your eligibility for a gratis check-up, call the Health Unit on 382- 4347. R-3 Golfers Earn Big Bux for MS William Hagel and Bob Koroncai of Region 3 spent May 26 on the links, earning $2,400 for the Multiple Sclerosis Society's "Longest Day of Golf" fundraiser. They hacked their way through an astonishing 106 holes in 14 hours without even a lunch break. Mrs. Thomasine Jordon acted as coordinator. Congratulations! Rousing OA Picnic The Office of Administration held its "Best 2nd" Picnic on the afternoon of May 18, 1987. More than 450 attended the highly successful event, held at Cameron Station, Virginia. OA Division Directors cooked over 1,000 hot dogs and hamburgers, while staff served a variety of side-dishes to the hungry mob. As last year, all surplus food was donated to a local charity. Festivities began with the annual Softball game. John Chamberlin, Director of Administration, awarded the winning team trophy to the Procurement and Contracts Management Division for the second year in a row. Other action: tennis, parodies, pasquils, horseshoes, singalongs, tugs-of-war, basketball, volleyball, dancing. The EPA Times is published monthly for KPA employees Renders are encouraged to submit news about themselves or fellow employees, letters of opinion, questions, comments, and suggestions to the liditor, The Times, Office of Public Affairs (A-107) Telephone 382-4371 Items be edited to accommodate space available Editor1 Don Bronkcma Departments Marilyn Rogers ------- Nefei Priorities, 1989 K! Administrator's budget guidance for FY 1989 bdes a priorities list focused on those problems enting the greatest apparent risk or public concern. Within the list there are two categories. The first includes environmental problems for which operational programs have already been emplaced. The second embraces emerging problem areas where research, contamination parameters, containment or remedial methodologies, and program development are still in a formative stage. A. Operational Programs • nonpoint sources, wetlands a NAAQS (03> PM10, S02) • active management of solid and hazardous wastes • drinking water and groundwater resources • re-registration of pesticides • air toxics • clean-up of inactive hazardous waste disposal sites • point sources for toxics in surface water • agricultural chemicals in groundwater • misuse of pesticides and toxics B. Emerging Problems ^^global thermal induction; climatological effects stratospheric ozone ® radon o indoor air • accidental releases of hazardous chemicals • geographical pesticide restrictions and community right to know ® biotechnology USDA Seminars on FERS Is it true, as some say, that on balance the new Federal Employees Retirement System is better for most of us than the Civil Service System? What are its advantages? Find out during a one-day seminar sponsored by the Graduate School, USDA, to be presented from 9AM-3:30PM on September 3 and 23 at the Graduate School, 600 Maryland Ave., S.W., Washington. The fee is $75. The seminar will be conducted by Jerry D. Klepner, one of the leading congressional staff architects of the Federal Employees Retirement System Act of 1986. He will cover such topics as FERS benefits (retirement, survivors, disability, annuities, refunds, cost of living increases) and •fer considerations (comparative benefits, portability, ^-level factors, taxes, deferred retirement). Call Fred ill at the Graduate School's Center for Applied Management, (202) 447-3247. Brain Drain Continues "Government Executive" (GE) magazine reports that, according to the Twentieth Century Fund's Task Force on the Senior Executive Service, 40 percent of the SES left federal employment between the time SES was established in 1979 and mid-1983. Many private sector firms suffer turnover rates nearly twice as high, but the magazine points out that SES personnel are mostly experienced managers at tho peak of their caroors, with homes, families and retirement equity to protect. They might be expected to resist the blandishments of the outer world. In fact, since 1983, the out-migration of the federal managerial class seems to have accelerated. The Office of Personnel Management reports that 391 SES employees left government in 1983, and that they have jumped ship in ever greater numbers every year since then. In the first nine months of 1986 some 543 SES members departed. GE's own informal survey of former executives paints a rather grim picture of the SES and conforms to findings of the Twentieth Century Fund, the General Accounting Office and others. Most of the former government executives with whom GE talked were depressed or bitter about their experiences. Many said they could no longer conscientiously recommend government service to others. That confirmed the results of a new survey by the Federal Executive Alumni Association in which 61 percent of 1,364 current managers said they would not suggest a federal career to young people—an increase of 10 percentage points over the last 12 months! "The bureaucracy no longer has the image of the best and the brightest, and that cuts the general level of competency," said a former transportation department executive. GE's respondents complained most frequently of increased politicization of the day-to-day business of government, a lack of substantive work, exclusion from policy decisions and inadequate rewards for heroic efforts. It must be said, however, that this view is not unanimous. Howard Messner, one of EPA's stellar SES'ers, says "I think it's working," and adverts to studies conducted by the National Academy of Public Administration showing considerable improvement in human resources management at EPA in the years following Anne Burford. Messner predicts a "renaissance of public service." Meanwhile, GE reported, it's getting harder to attract new people, especially in technical fields where private-sector remuneration is so generous. 1986 Performance Results The Personnel Management Division, OA, has expanded its Performance Management Review System (PMRS) rating and compensation report for 1986 to include GS and wage grade (WG) appraisal results. Highlights of the process: o Almost a fourth of the combined PMRS/GS/WG workforce was rated "outstanding." ------- A\otb% • Among PMRS employees, "outstanding" ratings continued to rise as "fully successful" ratings fell. The average award for an "outstanding" dropped as more awards were distributed. If this trend toward higher PMRS ratings continues, it could ultimately threaten the pay-for-performance basis of the PMRS system. • Performance Standards Review Boards (PSRBs) from across the agency voiced concern about the quality of performance agreements for PMRS employees, and recommended improving measurement criteria and documentation of employee accomplishments in the standard-setting and rating process. • Supervisors and managers should refocus appraisal discussions on rating levels that actually describe performance. ®To be consistent with EPA's human resources emphasis, managers and supervisors need to give as much attention to the appraisal process for GS and WG employees as for PMRS people. © "Fully successful" and above ratings were the order of the day for both PMRS and GS employees; less than 1% were rated below "fully successful." Over 23% of all rated employees performed at the "outstanding" level. "Exceeds expectations" was the most common rating (48%) and 28% of ratings were "fully successful". The 1986 rating results, combined with PSRB findings, suggest that managers must make a concerted effort to set challenging standards and to clearly define and communicate consistent performance expectations. When the benchmarks for "fully successful", "outstanding" and "unsatisfactory" performance are vague, inconsistent or too generous, and when significant concrete accomplishments are not demanded for high ratings, pressure to inflate ratings may be hard to resist—even when productivity has not risen. Both employees and managers will be more likely to perceive the Performance Management System as unfair or irrelevant, and the Agency will lose an important tool for improving productivity and planning personal and career development. The model measurement criteria issued last Spring should be exploited to stimulate management discussion on "quality" and "manner of performance" expectations for all employees. Assiduous efforts by managers to implement the recommendations of their PSRBs will also help EPA achieve a fair and effective Performance Management System. The Agency needs to assess appraisals for GS/WG employees. While the pay implications of performance appraisals are not as direct and immediate for GS/WG as for PMRS, failure to provide feedback—and protect the employee's rights by documenting that feedback—threatens the integrity of the supervisor/employee relationship. Course in Managing for Results Attention, supervisors and managers: ® Do you have trouble using the Performance Management System to get the results you want? • Are you constantly frustrated by people who can't see the "big picture" or always seem to miss a critical point? o Do the people on your staff seem to work at odds with each other? • Are you aggravated when an employee doesn't ^ understand what needs to be done, when to do it or If you answered "yes" to any of these questions, or w you're looking for a fresh approach to boosting your personal effectiveness and your staff productivity, then "Managing for Results" is for you. Through this two-day course you can expect to: • Identify your own managerial preferences, how they differ from the styles of others with whom you work and what this means in terms of getting a job done. • Develop an approach to the Performance Management system that gets the results you want, yet preserves the integrity of relationships. • Recognize how your style affects how you plan, assign, track and evaluate work and give feedback. ® Investigate tools and techniques that can help you get the best from your people and create a productive working environment for them. Prior to the course, each participant will take the Myers-Briggs Type Indicator (MBTI). The MBTI is not a "test." It is a relatively short, easy-to-complete questionnaire that identifies preferences in perception, judgment, leadership and work styles. There are no right or wrong answers. On the first day, participants will use their MBTI results to explore their own preferences and experiment with alternative styles. The second day includes small-group exercises and case studies to ex^ how variations in management styles affect people am performance, and to develop adaptive strategies for handling "problem" situations. The course is offered at no cost to programs and will be held at Otto Kroeger Associates, 3605-C Chain Bridge Road, Fairfax, VA. (703) 591-6284. To register call Tonya Williams-Berkley, Personnel Management Division, Headquarters, on FTS 382-3308. Deadline is July 6. You will receive an MBTI questionnaire and answer sheet following registration, and you should return it by July 13. Surrogates will be accepted until July 17, but they must complete the MBTI before the course begins. For additional information contact Regina Solomon, Personnel Management Division, on FTS 382-3321. If this announcement reaches you too late to register, note that the course will be repeated approximately in late September. IPA Handbook The Personnel Management Division has developed a handbook on the Intergovernmental Personnel Act to answer the most frequently asked questions about IPA assignments. IPA allows managers considerable flexibility and ingenuity in making staff interchanges between government at various levels and the private sector. The Act stipulates that assignments must be designed for mutual benefit of homebase and host organizations, a^^^R a means of addressing common problems or sharing expertise. Call the Headquarters IPA coordinator or your local servicing personnel office if you have any questions. ------- |