FY 1999 Performance Report
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We also pursued other initiatives to support our continuing responsibilities, and to significantly enhance both our direct services to customers and the Government's ability to use its human resources wisely and fairly to serve the citizens of our Nation.
FY 1999 Priorities and Highlights
We began FY 1999 with eight priorities. These priorities cut across our five strategic goals and related annual goals, and encompassed both new projects and continuing initiatives such as increased customer satisfaction. During the course of the year we made significant progress on these priorities. We also pursued other initiatives to deliver our continuing responsibilities, and to significantly enhance both our direct services to customers and the Government's ability to use its human resources wisely and fairly to serve the citizens of our Nation.
The cross-cutting external priorities identified in our FY 1999 Performance Plan are:
- Improving the linkage between pay and performance
- Providing flexibilities and tools for recruitment and hiring
- Strengthening our oversight of the merit system
- Refocusing attention on learning
- Modernizing HR information technology
- Supporting the family-friendly workplace
- Building cooperative labor-management relationships
We also identified one internal priority of improving our financial management.
Below are highlights of our accomplishments for FY 1999 in each of the priority areas. For a full discussion of all 115 goals and each of the 377 measures, see Appendices A-N.
Improving the linkage between pay and performance.
We continue our efforts to develop a performance-oriented strategic compensation system suitable for the variety of missions, structures, labor markets, and technologies that will characterize the Federal workplace in the 21st century. Our FY 1999 accomplishments in this area include:
Researching Approaches to Strategic Compensation.
To develop options for performance-oriented approaches to strategic compensation in the Federal Government, we began conducting extensive research on compensation in the private sector, state governments, and non-title 5 Federal agencies. We developed a benchmarking tool to make useful comparisons to information about private sector compensation practices and experiences. We also developed an historical model of the General Schedule in the context of changes that have occurred in organizational structure, work methods, technology, workforce characteristics, and emerging compensation practices in the U.S. economy.
Strategic Compensation Conference.
In September 1999, we hosted our first annual Strategic Compensation Conference. More than 400 attendees were briefed on the strategic compensation initiative as well as performance management, position classification, and pay and leave programs. Eighty-seven percent of attendees rated the conference as good to excellent. On a five point scale, the average overall rating for the conference was 4.14.
Effective Tools for Improving Performance.
We assisted agencies in their efforts to improve employee performance by providing them with guidance and assistance in several ways, including publications and access to valuable information via our website. We issued the Measuring Employee Performance handbook in March 1999, through which agencies received detailed guidance about how employee performance plans could be directly linked to organizational goals under existing appraisal regulations. We also established the "Performance Management Technical Assistance Center" web page on the our website. By the end of FY 1999, we were averaging 7,000 - 8,000 hits per week.
Equal Pay Self-Audit Guide.
We developed the Equal Pay Self-Audit Guide, a self- evaluation tool agencies can use to determine whether their classification and compensation systems support equal pay. We asked members of the Interagency Advisory Group of Personnel Directors to assess themselves using the Guide. We are using the results to inform our strategic compensation policy for the future and to lead a wider Administration effort to ensure equal pay for all employees.
Providing flexibilities and tools for recruitment and hiring.
After a long period of restructuring and downsizing, agencies have resumed hiring into mission-critical positions. They discovered that there is a "war for talent." Competition was especially strong in information technology occupations. In addition, agencies were challenged by the fact that at the end of FY 1999 27 percent of Senior Executive Service (SES) members and 12 percent of non-SES employees were already eligible for regular retirement. To be able to compete in the labor market, agencies need quicker and more effective recruitment and hiring tools. In FY 1999 we worked toward improving those tools and giving agencies greater flexibility.
Support for the Decennial Census.
In partnership with the Bureau of the Census we developed a hiring system to accelerate hiring mathematical statisticians, statisticians, and computer specialists for conducting Census 2000, the 22nd decennial census of the United States. The application process that was developed is fast and convenient. Applicants can use the Internet 24 hours-a-day to apply and submit applications for the jobs filled under this process. Under the old paper-based process used by the Census Bureau, it could take as long as 6 months to fill a job; it now takes 3 days. This effort has resulted in significant cost savings both in reduced staffing and record keeping costs.
Governmentwide Y2K Readiness.
We developed guidance and information for Federal agencies as they prepared to address the critical need to have an information technology workforce to handle Y2K conversion, including: Recruiting and Retaining Information Technology Professionals. This guide, available at www.opm.gov/y2k/html/recruit1.htm, described many of the staffing, compensation, and award flexibilities that were available to help agencies get the information technology workers they needed.
Y2K Job Search.
We also added a special search capability to USAJOBS to prominently display vacancies related to Y2K compliance issues and assist the job seekers who possess the special skills required by these positions to quickly and easily locate postings.
Y2K Pay and Leave Issues.
We provided advice and assistance about pay and leave entitlements for employees who were required to work during the Y2K rollover weekend and revised the emergency dismissal or closure procedures to apply specifically in the event of unanticipated work disruptions. We also provided waivers of dual compensation reductions. These waivers made it easier for agencies to reemploy retirees who had the programming skills and systems knowledge they needed without the reduction required in retiree's salary or military annuity.
Y2K Publications.
Through publication of Managing For Y2K in the Federal Workforce: The Human Element (Some Do's and Don'ts for Federal Managers) we provided strategies for keeping Y2K employees' morale and health intact as they dedicated themselves to the challenge of solving this complex set of problems. We also sponsored a seminar in September 1999 on the role of the Employee Assistance Program in helping employees deal with their concerns about Y2K and its impact on their lives, and we distributed copies of our Employee Assistance Program Y2K Support Kit.
Federal Cyber Service.
We worked with the National Security Council and other executive branch agencies to establish a Federal Cyber Service, a program to recruit and train the needed staff to protect the security of Federal computer information and its transmission. In FY 1999, we began an occupational analysis study of Federal Information Technology (IT) occupations to help select people with the right skills and aptitudes. As a part of the study, we developed a competency-based job profile to be used as an alternative to the current minimum qualifications requirements for IT occupations. The new job profile will be pilot tested with a select group of agencies in FY 2000.
Presidential Management Intern (PMI) Program.
Since its inception just over 20 years ago, the PMI program has served as a very effective tool to attract a diverse pool of high-performing people into careers in the Federal service. PMI's are required to have recently received an advanced degree and go through a highly competitive screening process. Those selected serve a two-year paid internship, including rotations across different Federal agencies. In 1999, we placed 345 PMI's Governmentwide – the most ever placed in the history of the program, and significantly exceeding our target of 300.
Diversity.
As the Federal human resources management leader, we are committed to assisting agencies to meet the President's challenge of creating a Government that reflects the rich diversity of the American people. Equal opportunity in employment for all people, regardless of race, color, sex, age, religion, national origin, sexual preference or disability is a fundamental goal. Specific actions in FY 1999 include:
President's Task Force on the Employment of People with Disabilities.
On October 16, 1999, President Clinton directed Federal agencies to step up their efforts to recruit and hire people with disabilities, and to serve as a model for private-sector employers. This directive was the culmination of work conducted by the President's Task Force during FY 1999. As a member of the Task Force, OPM developed Accessing Opportunity: The Plan for Employment of People with Disabilities in the Federal Government, the Federal Government's first-ever plan to hire and promote persons with disabilities at all levels of the Federal work force, from entry-level jobs to the Senior Executive Service. We also developed a companion guide entitled People with Disabilities in the Federal Government: An Employment Guide. This comprehensive tool addresses best recruiting practices, how to provide opportunities for students, developmental and advancement opportunities for current employees with disabilities, reasonable accommodations for qualified applicants, and our expectation that agencies will regularly monitor their own workforce data to measure their success. OPM, in its human resources management oversight role, and the Equal Employment Opportunity Commission, as the agency responsible for enforcing the Federal Government's affirmative action and nondiscrimination programs, will also keep track of Federal employers' efforts to recruit and employ persons with disabilities.
Last March, PMC members accepted the challenge of improving Hispanic employment in the Federal Government when they endorsed the recommendations of the 1999 Report to the President’s Management Council on Hispanic Employment in the Federal Government.
Addressing Mental Health.
To carry out the President’s directive to achieve parity for mental health and substance abuse coverage in the Federal Employees Health Benefits Program (FEHBP), we asked participating health plans for their support. Such parity will require that coverage for mental health, substance abuse, medical, surgical, and hospitalization services be identical with regard to traditional medical care deductibles, coinsurance, copayments, and day and visit limitations. In June 1999, we notified all FEHB carriers to begin making preparations to implement mental health and substance abuse parity in the Program for the 2001 contract period. Since then, we have undertaken activities to inform and educate the carriers about the initiative, and have worked extensively with them in a collaborative planning process. We are also consulting with many mental health and substance abuse organizations for their expertise, and we contracted with the Washington Business Group on Health to learn the best practices of large employers with experience in offering these benefits. We also developed the President’s Executive Order 13124 of June 4, 1999, which permits adults with psychiatric disabilities who were hired under a excepted hiring authority the same opportunity to acquire competitive employment status after two years of satisfactory service that was already afforded to employees with mental retardation and severe physical disabilities. We also began work on the implementing regulations.
Hispanic Employment Initiative.
In 1997, we developed a nine-point Hispanic Employment Initiative to provide Federal agencies with helpful, practical guidelines for improving the representation of Hispanics in the Federal workforce. It has become a driving force for increasing Hispanic employment in the Federal civilian workforce. To help agencies reach out to Hispanic college graduates, we are placing touchscreen job information kiosks in Hispanic-serving institutions. In FY 1999 we added 18 new kiosks, raising the total to 40.
President’s Management Council (PMC) Interagency Work Group.
Last March, PMC members accepted the challenge of improving Hispanic employment in the Federal Government when they endorsed the recommendations of the 1999 Report to the President’s Management Council on Hispanic Employment in the Federal Government. The Director of OPM co-chaired the PMC workgroup which developed this comprehensive report on Hispanic employment which provides agencies with a model for developing employment strategies.
Governmentwide Diversity Seminar:
Workforce diversity has evolved from sound public policy to a strategic business imperative—and our leadership curriculum is keeping pace. In our key leadership seminars, managers and executives learn how to make diversity an organizational advantage. In September 1999, we launched a new seminar,“Diversity; A Business Necessity for the Millennium,” this week-long seminar is offered by our Management Development Centers. Also, in 1999, we piloted a leadership forum on diversity designed to keep senior executives abreast of national policy issues and developments and interact with other executives.
Preventing Discrimination Based on Sexual Orientation
In June 1999, we unveiled a new guide to help Federal employees who believe they have been discriminated against because of their sexual orientation. Addressing Sexual Orientation Discrimination in Federal Civilian Employment: A Guide to Employees’ Rights can be accessed on our website at (www.opm.gov/er/address2/Guide01.htm).
Welfare-to-Work.
In 1997, the President and Vice President launched their Federal Welfare-to-Work Hiring Initiative and called on the Federal agencies to hire 10,000 welfare recipients by year 2000. Through 1999, the Federal Government has hired 17,000 former welfare recipients—far surpassing agencies’ original commitments. In addition to participating as a Federal agency, OPM provides Governmentwide program support through hiring authorities and training and mentoring models, and by tracking the program’s success.
Solutions Conference
The Solutions conference brings together a national audience of executives, managers, and HR staff to learn about cutting-edge initiatives in personnel management, staffing, human resource policy and equal employment opportunity. The second annual Solutions conference attracted more than 700 participants in May 1999. In an end of conference survey, 95 percent of participants gave the conference an overall rating of good or excellent.
“Last year I asked Vice President Gore to lead the Federal Welfare-to-Work Hiring Initiative ... we set a goal of 10,000 hires by 2000.”
— Bill Clinton
Strengthening our oversight of the merit system.
Oversight of the merit system is a continuing priority, and even more so in today’s evolving HRM environment. In the past several years we have significantly expanded our oversight and assistance to agencies to ensure the nine merit system principles are followed, in title 5 agencies, and in agencies that are exempt from various portions of title 5. We realize that agencies deal with human resource issues in a variety of ways, but we insist that they all provide for fair and open competition, treat employees efficiently and fairly, and adhere to the other merit principles. Deregulation, delegation, and alternative personnel systems allow flexibility; the merit system principles provide consistency. While there is a high level of compliance with these principles, we take appropriate action when we encounter violations.
Oversight Reviews.
During FY 1999, we completed merit system oversight reviews of 15 agencies, which included approximately 120 installations. While the merit system remains strong, we discovered several areas that required improvements and provided recommendations or corrections for improving HR practices. Agencies gave these evaluations high marks (averaging 4.78 on a 5.0 scale), based on such criteria as the importance of the issues addressed and the usefulness of the findings. A significant portion of the Federal workforce is covered by non-traditional systems such as interchange agreements and alternative personnel systems that are exempt from various portions of title 5, United States Code. We are working more closely with these agencies, and reviewed four of them during FY 1999.
We are leading the Federal Government’s initiative to reinvigorate training and development programs in order to promote lifelong learning and to ensure that our workforce, at all levels, is prepared to meet the demands of the 21st Century.
Delegated Examining Unit Assistance.
In FY 1995, OPM delegated the authority to examine applicants for Federal jobs to agencies. They conduct this work through Delegated Examining Units (DEU’s). Although examining is now decentralized, we ensure that the activity is conducted in accordance with law, regulations, and merit system principles through a formal DEU certification program, and by providing advice and assistance in their operation. In FY 1999, we developed a new standardized DEU certification program and revised the DEU operational handbook to make it easier to use. We also placed the handbook and other material on our website for wider agency access (www.opm.gov/deu). We met our schedule for regular recertification visits, completing 66 DEU reviews. Our findings indicate agencies are, for the most part, conducting delegated examining work within the merit system principles, and we provided assistance to correct the problems we did find.
Accountability.
Agencies need systems to help them assess how effectively they are using their human resources, within the parameters of the merit principles. During FY 1999, with the help of an interagency accountability task force, we developed and issued an HRM Accountability Development Guide as a tool for managers to use in establishing a viable accountability system. (www.opm.gov/account)
Merit Systems Principles Questionnaire.
To further strengthen our oversight program, we revised and improved this questionnaire which is one of our primary diagnostic tools to assess employee and managerial perception of the merit system in their agencies. The questionnaire was significantly shortened and the questions were reorganized and refocused on the respondents’ immediate work unit and experience. The new questionnaire will support the next cycle of oversight reviews.
Policy Studies.
Findings from oversight reviews, analyses of personnel trends and the interests of Congress and other stakeholders prompt special studies on a variety of HRM issues. For example, in February 1999, the Poor Performers in Government: A Quest for the True Story study indicated that a relatively small proportion of the 1.8 million Federal employees can be termed “poor performers.” Later in the year, Opportunity Lost: Openness in the Employment Process revealed that agencies failed to provide the required public notice for one-third of their job vacancies.
Refocusing attention on continuous learning.
We are leading the Federal Government’s initiative to reinvigorate training and development programs in order to promote lifelong learning and to ensure that our workforce, at all levels, is prepared to meet the demands of the 21st Century. As evidenced by our accomplishments below, we are taking concrete steps to make this vision a reality.
The Learning Symposium: Building Workforce Performance.
In December 1998, we marked our resurgence in human resource development leadership by sponsoring The Learning Symposium: Building Workforce Performance. The Symposium’s unique design brought together human resource development professionals with their strategic partners in diverse occupations to discuss and learn about emerging issues and technologies related to improving workforce performance.
Executive Order 13111, signed by the President on January 12, 1999, promotes a coordinated Federal effort to employ technology to provide more flexible, accessible and cost effective training opportunities to Federal employees.
Technology Task Force.
Executive Order 13111, signed by the President on January 12, 1999, promotes a coordinated Federal effort to employ technology to provide more flexible, accessible and cost effective training opportunities to Federal employees. The Executive Order created the President’s Federal Training Technology (FTT) Task Force, chaired by the Director of OPM, and prescribes specific steps to be taken by Federal agencies to enhance employees’ training opportunities through the use of training technology. The FTT Task Force is developing recommendations on several issues, including: (1) effective use of technology to improve training opportunities for Federal Government employees, (2) establishing the criteria for software modules that will be used to create courseware for the technology-based learning management systems of the 21st century. The FTT Task Force also developed options and recommendations for establishing a Federal Individual Learning Account for Federal workers (see next bullet for full description).
Individual Learning Accounts (ILA).
An ILA is a base amount of resources expressed in terms of dollars or hours, or both, that are set aside for an individual employee to use for his or her learning development. Accounts may be used to develop knowledge, skills, or abilities that directly relate to the employee’s official duties. In conjunction with volunteer agencies, we are exploring new ways for distributing Federal training funds. The ILA initiative, in which agencies would participate in pilot programs, is a result of recommendations from the FTT Task Force which were approved by the President. In FY 1999, we conducted research on private and public sector ILAs. This research formed the basis of the recommendations from the FTT Task Force. A cross section of Government agencies and employees are participating in the pilot programs. Twelve agencies are conducting 16 pilots that cover several thousand employees.
We are working, internally and with the Human Resources Technology Council (HRTC), on modernizing Governmentwide systems to make human resource information more useful and accessible for a broad range of uses ....
Modernizing human resource information technology.
We are working, internally and with the Human Resources Technology Council (HRTC), on modernizing Governmentwide systems to make human resource information more useful and accessible for a broad range of uses, including: merit system oversight reviews, the processing of retirement applications, as well as, planning and budgeting by the Office of Management and Budget, the White House, the Congress, the General Accounting Office, other Federal agencies, the media, and the public. We made significant progress in a number of areas in FY 1999:
Human Resources Data Network (HRDN).
The HRTC Planning Committee approved a Vision and Concept of Operations for a Governmentwide Human Resources Data Network (HRDN). When implemented, the HRDN will significantly affect the electronic storage, distribution, and access to human resources data throughout the Federal Government.
During FY 1999, we built on the concept of operations by beginning to redesign the retirement program, the technology that will support it, and the organization that will administer it.
Self-Service Benefits.
Through the encouragement of the HRTC, an increased number of agencies are using self-service benefits selection systems (such as OPM’s Employee Express) which allow direct entry by employees, saving the time and resources of personnel offices. Also, the Data Hub was made available to non-Employee Express agencies to submit FEHBP transactions directly to the health carriers from their internal self-service benefits systems.
Central Personnel Data File (CPDF) Modernization.
Another part of our HR modernization efforts includes upgrading the Central Personnel Data File (CPDF), our repository for personnel data on most Federal civilian employees. The objective of this project is to acquire the data more efficiently from agencies through enhanced electronic submission and to make the data more accessible to users. Although this is an FY 2000 project, initial work began in FY 1999 to develop project plans and to pilot and test secure data transfer protocols over the Internet.
Retirement Systems Modernization (RSM).
Our central strategy to meet our long-term customer service, financial management, and business goals for the retirement program is Retirement System Modernization (RSM). The key elements of RSM include: agency, program participant, and OPM access to electronic information and services; streamlined processes that reduce handling and rework at the agencies and OPM; tools and self-service options for program administrators and participants to facilitate accurate and timely customer service, benefits counseling and payment; and improved employee withholding and reporting to facilitate trust fund management. During FY 1999, we built on the concept of operations by beginning to redesign the retirement program, the technology that will support it, and the organization that will administer it. With this framework, we also developed a long-term Capital Asset Plan that describes the components and strategy for implementation, as well as the costs and return on the investment. Finally, we identified and developed three “early win” prototypes that will provide results immediately. Two of these – a calculator for FERS retirements and a benefits booklet for retirees – have already been implemented.
Supporting the family-friendly workplace.
The most competitive companies in the private sector find that family-focused programs help them attract and retain the best and brightest workers. As the demographics of the workforce continue to evolve, so do the expectations and needs of employees. Family-focused programs are essential to helping our Federal workforce balance the ever increasing demands of work and family life. We continue to encourage the Federal Government to be the model employer for family-friendly programs by providing and promoting affordable child care options, alternative work schedules, family and medical leave, telecommuting, part-time employment and job-sharing opportunities, and employee assistance programs.
Family-Friendly Workplace Advocacy Office (FFWAO).
The Family-Friendly Workplace Advocacy Office (FFWAO), was opened on March 1, 1999, as directed by Congress, to create and foster a family-focused work environment for Federal employees. The Office carried on and expanded the mission of our Work and Family Program Center. FFWAO assists Federal employees and agencies in resolving problems with family-friendly workplace policies; identifies administrative or regulatory obstacles to implementing family-friendly policies and practices; and proposes regulatory or legislative changes where needed. The FFWAO is the vital link between the Federal Government human resources experts and managers and employees on work/life issues.
Interagency Family-Friendly Workplace Working Group.
We established this interagency group in response to the President’s memorandum of May 24, 1999, “New Tools to Help Parents Balance Work and Family.” Work/Life coordinators from over 65 agencies and three officials from Federal employee unions attended the first meeting we hosted on October 5, 1999. Committees are working on action plans to address various issues.
Extended Sick Leave for Family Care.
In May 1999, the President directed OPM to implement a major change in leave policy that would allow Federal workers to use up to 12 weeks of accrued sick leave each year to care for a family member with a serious health condition, an increase from the current 13 days a year. We immediately began working with interested stakeholders to develop regulation to carry out the President’s directive, and on February 9, 2000, we issued the proposed regulations to make this policy change.
Implementation of New Legislation Permitting Federal Agencies to Use Appropriated Funds for Child Care Costs.
On September 29, 1999, the President signed into law the Treasury and General Government Appropriations Act that included a provision to permit Federal agencies to use appropriated funds, otherwise available for salaries and expenses, for child care costs. The purpose of this legislation is to increase the affordability of child care for lower income Federal families. This is a ground-breaking initiative for the Federal government. We conducted extensive research with private sector companies, the Department of Defense Military Child Care system, Federal agencies with child development centers, the Federal employee unions, and private sector providers, to develop regulations and technical guidance. The proposed and final regulations have been issued. The law authorizes the expenditure of appropriated funds for only one year until September 29, 2000. Analysis of the outcome of the first year’s implementation will be used by Congress to determine whether to continue this program.
Federal Child Care Summit.
Held in May 1999, this premier summit, Affordable, Quality Child Care: An Employer Issue, fulfilled President Clinton’s directive to host “...a nationwide summit designed to showcase model public and private sector solutions to child care needs.” The summit brought together, for the first time, employers from the public and private sector, unions, educators and child development specialists, and child care providers, who represented the various child life stages and child care interests – to exchange information on early childhood education, quality and costs, and safety. More than 250 attendees participated in the Summit. The two and one-half day Summit showcased some of the best examples of partnerships and programs related to child care and affordability in the country.
Organ Donor Leave Act.
Currently, more than 65,000 Americans are awaiting an organ transplant. Last year, almost 5,000 Americans died while waiting for an organ to become available. This amounts to an average of 13 citizens each day. In 1997, the Department of Health and Human Services, in partnership with the Office of Personnel Management, implemented a Governmentwide campaign to encourage Federal employees to consider organ donation. On September 24, 1999, the President signed P.L. 106-56, Organ Donor Leave Act, to increase the amount of paid time off allotted for Federal employees who serve as organ donors from 7 days to 30 days each calendar year. OPM helped draft this new law that will enhance the Federal Government’s leadership role in encouraging organ donations by making it easier for Federal employees to become donors and become part of this life saving effort.
Domestic Violence.
In February 1999, we published a guide on Responding to Domestic Violence: Where Federal Employees Can Find Help. This guide provides concrete advice for the employees who are victims, for friends and co-workers, and for their supervisors. It also guides the supervisor through an array of resources and management tools that can be brought to bear in a workplace violence situation. The guide has received widespread recognition, including an endorsement from the Chairman of the Joint Chiefs of Staff. It complements our earlier publications, including Dealing with Workplace Violence: A Guide for Agency Planners, and Handling Traumatic Events: A Manager’s Guide. We also expanded our website to include a section on Responding to Domestic Violence. (http://www.opm.gov/workplac/html/domestic.html-ssi)
Patients’ Bill of Rights (PBR).
Beginning our PBR initiative in 1998, we took a collaborative and flexible approach that recognized and adapted to the different health carrier environments and delivery systems that characterize the Federal Employees Health Benefits Program (FEHBP). During FY 1999, our specific activities built upon the work we did in 1998 by requiring carriers to provide the continuity of care and access to medical records protections outlined in the PBR, and publishing final regulations that prohibit health plans from limiting the disclosures physicians may make to patients regarding treatment options. In FY 1999, we addressed growing concerns about the quality of managed health care by completing the implementation of the Patients’ Bill of Rights across the entire FEHBP, which covers almost nine million Federal employees, retirees and their families. We set a standard for the nation and demonstrated the feasibility of providing these protections to all Americans. Thus, we improved an already progressive health benefits program by working in partnership with the health carriers and focusing on the ultimate outcomes of patients’ rights rather than on process. Our efforts have been recognized by the White House, the FEHBP health carriers, and medical associations.
We continue to promote building collaborative labor-management relations and lead the Government in improving operations by helping agencies work effectively with Federal labor organizations.
Long-Term Care Insurance.
The President made long-term care (LTC) one of his priorities for improving health care in the United States and has looked to OPM to serve as a model employer by making sound LTC products available to Federal employees and retirees. We responded by working with staff and consultants for the Department of Health and Human Services to develop a legislative proposal to enable us to contract for these products. Our proposal for a LTC program was introduced in the Congress in January 1999. Several alternative proposals were introduced and we are now working with the Congress to develop consensus. Upon enactment of this important legislation, we will develop the necessary implementing regulations, begin an educational initiative for the affected population, and make LTC insurance available to Federal employees and their qualified relatives.
Building collaborative labor-management relations.
In 1993, the President signed Executive Order 12871, and called for the creation of labor-management partnership councils throughout the Executive branch. It also created the National Partnership Council, chaired by the Director of OPM. We continue to promote building collaborative labor-management relations and lead the Government in improving operations by helping agencies work effectively with Federal labor organizations. We also regularly consult at the national level with labor organizations, agency managers and labor relations officials in the development of human resource policy and on Government rules, regulations, and binding directives affecting conditions of employment.
Memorandum Reaffirming the President’s Commitment to Partnership.
Throughout 1999, we provided extensive support to the White House, agencies, and unions in their discussions addressing labor-management partnership. These discussions culminated in the President issuing a memorandum on October 28, 1999, reaffirming his commitment to partnership and establishing a series of next-steps for agencies and their unions. The President called on Federal agencies to develop a plan with their unions for implementing his memorandum and Executive Order 12871. He also directed agencies to report on the nature and extent of their efforts to achieve the goals established by the memorandum and the Executive Order 12871.
National Partnership Council.
The National Partnership Council, which is chaired by the Director of OPM, successfully accomplished all of the goals it set out in its 1999 Strategic Plan. We continue to oversee the National Partnership Council’s Research Project, the most comprehensive study yet attempted to measure the growth and development of partnership at several different Federal agencies. The Council’s findings and a final report are expected in 2000. We also worked with the National Partnership Council to sponsor two Skills-Building Workshops in 1999, in an effort to link unions and agencies with the skills and tools they need to make effective partnerships a reality.
John N. Sturdivant National Partnership Awards.
In September 1999, we presented the John N. Sturdivant National Partnership Award to six labor-management teams for their successful efforts at improving Government service and saving tax dollars. By honoring the hard work of these labor-management partnerships, the Council believes it will motivate others to use the partnership approach to achieve a better Government.
Alternative Dispute Resolution (ADR).
In FY 1999, we presented the first-ever OPM Director’s Awards for Outstanding ADR Programs. Seven awards were presented at a ceremony held in July 1999, showcasing outstanding ADR programs across the Government which had established non-traditional approaches to settle labor-management differences, thereby precluding costly, formal administrative procedures and reduced productivity losses common in litigation. We also updated and expanded our publication, Alternative Dispute Resolution: A Resource Guide in July 1999.
Improving financial management.
We are committed to continuous improvement in all of our financial management operations, systems, policies and procedures. Over the past few years, internal and external reviews and audits have identified internal and management control weaknesses in our financial administrative and trust fund areas. We strengthened our management of our administrative and trust fund (retirement, health benefits, and life insurance) financial management systems during FY 1999. Our Strategic and FY 1999 Performance Plans included several goals that reflect the importance we place in resolving these management challenges.
1) The FY 1998 financial statements for the employee benefit programs received unqualified audit opinions for the first time, and most material weaknesses in management and internal controls in their related financial systems were either closed or downgraded to reportable conditions. For FY 1999, we received an unqualified audit opinion on all the employee benefit trust funds’ financial statements–all multi-billion dollar programs.
2) We made significant progress toward resolving the material weaknesses identified in our administrative systems. While we have not fully resolved these weaknesses, the Office of the Inspector General’s audit report noted the progress we made in a number of key areas. We will continue to work on these as planned in FY 2000.
3) We implemented a new transaction-based financial system for the retirement, health benefits and life insurance programs.