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Tuesday, Dec. 30, 1997

Bob Levey

Good afternoon and welcome to Levey Live. I’m your host, Washington Post columnist Bob Levey. We meet here each Tuesday, from noon until 1 p.m. Eastern time, to discuss major news stories and issues from Washington and elsewhere.

Levey Live will feature guests who are important newsmakers, as well as reporters and editors from The Post’s newsroom. Each week at this time, you will have a chance to ask them questions directly. The main idea of Levey Live is to give you a chance to participate, just as you would if this were a talk show on the radio or on television.

In addition to my 30 years on the staff of the Post, I have worked as a talk show host and commentator for seven radio stations and four TV stations. I’m delighted to host this show, and I look forward to giving you a stimulating place to turn (and return).

Today, it’s a pleasure to welcome my Washington Post colleague, Mike Causey. He writes The Federal Diary, the Post’s column about the federal government and its employees. Mike has been writing the Diary for more than 25 years. He is an expert on personnel issues, retirement, health care and downsizing. We welcome questions on any of these subjects, or any other aspect of federal service. You don’t need to be a federal employee to participate. We anticipate a large number of questions, so please file yours early. Thank you.

New York, NY: Is President Clinton epxected
to give the federal government
off on January 2nd?

Mike Causey: They told me to keep these answers short, so: NO.
Last time there were back to back bonus holidays, the days after Christmas and New Years Day was under president Nixon. But that was because of oil shortage. Don't expect history to repeat itself.

Clarksville, TN: I am an active duty soldier, If I take a federal job, can I "earn" the 10 years in service back toward a federal (GS) retirement? At what age can I draw retirement?

Mike Causey: You must be with the 101. I trained with them for a time. Short answer is: Yes. Your military time will be credited toward civil service. Since you will probably come in under the FERS retirement system your minimum retirement age most likely will be in the neighborhood of age 55. Good luck. MC

Alexandria VA: I'm considering working for the Federal government. What are the prospects for first-time applicants? I'm 61 years old and have been told by federal workers that Uncle Sam "does not discriminate on the basis of age." Is this true? Where should I begin?

Mike Causey: The job market in government is very tight. Justice (INS) is one of few agencies hiring-like border guards and prison guards. Also agencies are under orders to seek out women, minorities and especially Hispanics. While Uncle Sam does follow an equal employment policy, your chances, at age 61, are slim.

Waldorf, Maryland: I started my Federal career in June 1962, had a break in service from 1965 to 1976, then resumed my career; total service is 24 years. I withdrew my retirement ($900) in 1965. If I choose not to repay the money, how will it affect my retirement? (I'm under CSRS.)

Mike Causey: When you retire you have two choices: Either payback the amount you withdrew in a lump sum, or don/t repay it. In that case the government will make an actuarial assumption of how long you will be retired, then withdraw X amount of dollars from your annuity check to repay the amount you withdrew. Check with your benefits office, but generally speaking that_repaying it monthly_is the best rule. MC

Baltimore, Md.: The agency I work for (SSA) was unwilling to offer buyouts this fall. I would have retired if they had.
Is there any pending legislation to (1) offer retirement incentives such as a buyout in FY'99 AND
(2) require that agencies participate in the incentive, such as a government wide buyout. Without this, I'm sure our agency won't participate.

Mike Causey: There is very little chance there will be a government-wide buyout in 1998. And even if it happened your agency wouldn't be required to participate. Defense, NASA< TRransportation, will be offering buyouts in 1998. But HHS & SSA don't have any plans, as of now. MC

Bethesda, MD: I have been a federal worker for 15 years. I am covered for retirement under the old Civil Service Plan. I also have a TSP account to which I regularly contribute. What is your opinion of switching to the FERS plan at this point? When originally offered the option at the beginning of FERS, I thought that it was not a good idea because of lower benefits and I stuck with the CS plan. I still think that I made the right choice, given the fact that I opened a TSP account when that was first offered to CS folks. I'd like your opinion, Mike. Thanks!

Mike Causey: CSRS is the best plan, generally, if you are a lifer planning do do 25 to 30 years. FERS is better for people who make career changes_like from govt to industry. You will have plenty of time to decide next year. Key point: If you switch to FERS max out your TSP contributions. MC

Bob Levey: Mike is thrashing away at the keyboard, answering your questions. But he'd love more. Please file your questions as soon as possible. We'll get to them as soon as we can. Thanks

Baltimore, MD: Situation: A single female, age 43, Federal employee resigns after 13 years and takes out her retirement. About 5 years later, she comes back to the federal service. She's still single with no children and takes the CSRS (reinstatement program). No repayment of the previous retirement money has been paid. Should she now consider switching to FERS. Why?

Mike Causey: You are always safe in CSRS or CSRS offset. FERS might be a good option for you, but check with your benefits office (they should have software from an outfit called GRS in Alexandria, Va.) They can project your benefits under both systems. Again, you will have plenty of time to decide whether to stay or switch. MC

Bob Levey: There has been much noise during the Clinton Administration about the downsizing of the federal government. Has it actually happened? Will it? Can Gore claim credit for it during the 2000 campaign?

Mike Causey: Clinton has eliminated about 280,000 federal jobs (outside the postal service). Gore has been in charge of reinvention. Whether that will help or hurt him politically is hard to say. Downsizing is great, unless you are one of the downsized.

Washington, DC: I just read about an Equal Pay Act case filed again the VA. Nurse Practitioners (mostly women) claimed lower pay than Physicians Assistants (mostly men)for substantially similar work.
Do you foresee more of these types of claims, since agencies are going away from uniform pay systems? Do you think this spells trouble for the civil service system as a whole?

Mike Causey: Federal agencies are already swamped with all kinds of adverse action, equal employment, etc. cases. And they are shelling out $$$millions in judgements. The lawyers love this. There will be lots more.

Ashburn, VA: Are the Series EE Savings Bonds currently a good idea for saving for education for young children?

Mike Causey: I am not a financial planner. EE bonds are safe, that is for sure. But you can get a much better return (with much more risk) in a mutual fund. Explore the concept of Roth IRA for your grandchildren (they need some kind of income to qualify). Bonds are safe, but don't give you the greatest return.

Washington DC: Just wanted to commend you for your concise and interesting column. I'm not a federal employee but I'm interested in their issues too and rely on your column to get the scoop.

I know people that have stopped considering govt jobs because they feel it's so unstable (layoffs, etc.) Your thoughts?

Mike Causey: Thanks. Needed that after Christmas.
Lots of people are having second thoughts about government, because of downsizing. But to put it in perspective, governemnt is still the the most stable employer around, and provides the best safety net for those who get downsized. Don't give up on Uncle Sam as an employer.

Bob Levey: About half an hour to go with The Washington Post's Federal Diary columnist, Mike Causey. Please file your questions early (as in now). Thanks

Waterloo,Iowa: What is the current state of the National Proformance Review is it just a study lying on the shelf somwhere? What effect is it having?

Mike Causey: The NPR staff is busy, and many agencies are working on impletmenting recommendations and forming their own NPR task forces. Personally I am not a fan of such efforts. They tend, I think, to focus more on identifying problems and getting publicity rather than dealing with real world problems.

Oakton,VA: I am currently enrolled in FERS and save 10 percent of my annual pay. My question is, when I retire - what type of fixed income will I receive in addition to my TSP Funds?

Mike Causey: You are doing the right thing so far. Max out and put as much in the C-fund (with adjustments for your age) as you are comfortable with. When you retire you have many options. Take it all out, purchase an annuity, take it out in equal portions, etc. Main thing is that you are maxing out and have ridden the 15-year (so far) bull market.

Alexandria, VA: Hi, Mike. Is it true that FERS employees who decide to take early retirement must reckon with a whopping 5 percent reduction per year for each year they are under age 62, whereas CSRS employees who decide to retire early must subtract from their annuity 2 percent for each year they are under age 55? If correct, that would seem to be a very important factor to evaluate in considering a switch from CSRS to FERS next year. Thanks, Mike, and keep up the good work!

Mike Causey: There are some significant differences between FERS and CSRS, including the early-retirement penalty you mention. This is why everybody eligible should consider switching from CSRS to FERS, but, after doing their homework, many will decide they are better off sticking with CSRS.

Bob Levey: Pet theory: More and more federal retirees will stay in the Washington area, because they like their houses, like their communities, like the cultural attractions of the Washington area, dislike the increasing clutter of retirement states like Florida and Arizona. You buy it?

Mike Causey: I think you are correct for several reasons. 1) Flordia looks better to a 40 year old beach lover than to a 70 year old who hates the sun. 2)Also, many people decided to move to Florida years ago before it got crowded, and drugs became a fact of life. For a variety of reasons_including that this is a wonderful area, I think more people will stay here_or retire within commuting distance.

Baltimore, Md.: Do you expect civilian agencies such as SSA to offer early outs (not buyouts) in 1998 or 1999?
(Current early out ends 12/97)

Mike Causey: There will be widespread early-outs (at least agencies will have the option to offer them) in 1998. But the track record is that people don't take earlyretirement unless they also can get a buyout.

bethesda, MD: Thanks for a great daily column, Mike. Do you have any insights into whether govt personnel rules will be changing to make it easier to hire or fire employees? I know that there may be some pilot programs around, but I think that the federal govt as a whole needs more flexibility to deal with personnel problems promptly, and the govt should be able to reward those whose performance is outstanding.

Mike Causey: I don't think the rules will be changed to make hiring, firing easier. What will happen (maybe) is that more government functions will be farmed out to contractors or temps_who are easier to handle. There will be more pilot projects (like China Lake in California) with flexible personnel systems. But don' think there will be major changes in hiring and firing rules.

Bob Levey: There are many cliches about Washington that are false, but I'd say the falsest is: Government workers are dullards, bureaucrats without a shred of imagination. Where did this slander come from? Why does it persist?

Mike Causey: I think Americans were born out of a revoluntionary distrust of government. The silly postal worker_Cliff Klaven in Cheers, Newman in Seinfeld_are easy targets. In fact, feds are probably a cut above many if not most American workers. Most must pass a test, security clearance, etc. Dullards they ain't!

Dayton, Ohio: No question but a comment/opinion. I'm interested in yours.

I'm a 30-plus year government employee. The buyout situation makes me angry. Why are we (as in us the government and taxpayers) paying people to retire when they should be retiring anyway. Anyone already eligible for normal retirement and is so inclined shouldn't be getting $25K to do it. The $25K, to employees in my pay range anyway, only a few months pay if they stayed; I think that proves my point. The wrong people are being approved for the VERA/VSIP. For example, on 3 Jan 98, a 60-plus year old man, already retired from the Air Force as a LtCol, will retire from civil service and get the $25K. He says he was ready to retire anyway so what's the point of the bonus? By the way, his wife is also retiring at the same time and guess what? She's getting $25K too.

My point is, to me the $25K is not enough to make me leave unless I'm ready anyway. Offer me a substantial sum (as industry does), say $100K, and I may think about it.

Thanks for the forum.

Mike Causey: The real purpose of the buyout program was to get white, middle-aged males (with military service, hence veterans preference protection) to leave so that agencies would not have to run a RIF which would have hit new hires_most of them women and minorities. Statistics show most of the buyout takers were men, about age 60, in civilian Defense jobs. For them it was a $25,000 gold watch. For the government diversity program it was a life-saver.

leonardtown, md: I am under the old retirement system. Back in 1970, I withdrew my retirement after working for the Federal government for 18 years. Then, I started working for the Federal government back in 1973 on Capitol Hill, did not have retirement taken out of my check until 1979. I have been with the Federal government since that time. My question to you is that I owe too much money to be able to pay it back before I retire. What kind of penalty am I facing upon retirement.

Mike Causey: See earlier answer. You can repay the money via deductions from your monthly annuity.

Washington DC: I'm currently an IRS employee and am curious to hear your opinion as to the future of the Bureau. If I'm rading the signs right, I should have my application out on the street.

Mike Causey: IRS may wind up getting even bigger, if the White House increases its role in running down deadbeat dads & that sort of thing. Always good to keep your resume up to date, but don't lose any sleep.

Washington, DC: At 43, I accepted a position at Justice at 20% pay cut from contractor work to get gov't security and 'great benefits'. Now seeing the bureaucracy from the inside, is it worth it? The good benefits seem to be after 3-5+ years of service and then later at retirement (if I make it).

Mike Causey: The time will pass no matter where you work. By coming into government you have bought into a superb retirement plan and good vacation package. Your reward will come in time.

Washington, D.C.: For a family of four - what fee-for-service health plan rates the best?

Mike Causey: Blue Cross standard,GEHA are excellent. Mail Handlers is also good but it has a weak prescription benefit.

Bob Levey: Only 15 minutes left with popular (and oh-so-dapper) Federal Diary columnist Mike Causey. If you've been saving a question, now's the time. Thank you.

Washington, D.C.: OK, I'm going to ask you to go along with the typical columnist's look back at the year: What, if anything took you most by surprise in 1997?

Mike Causey: The big suprise (not in my personal life, which had many) on this beat had to be the congressional approval of the pension plan--CSRS to FERS switch. Second suprise, Clinton's veto of it. Third suprise, Clinton decision to rescind the veto. Who would have thunk it?

Washington DC: Hi Mike -- What about pay?? 2.45% for the DC area is just wrong !!! Is there a chance that this will be corrected next year? What about the larger question of pay comprability. Is that still a possibility in the near future or is this whole concept dead?

Mike Causey: The 2.45 percent amount (which is much less than required by the 1990 Pay law) actually is very close to the rise in private sector wages. President Clinton believes that federal workers (if you include the value of benefits) are well-paid compared to the private sector. Bear in mind, before coming to Washington he was earning (as Governor of Arkansas) about $45,000 a year.

Bob Levey: Why is there so much information (and misinformation?) about government health insurance? Every time I hop on the subway during the open season, I seem to see another ad that promises the moon. Why can't this whole process be more simple, or at least less confusing?

Mike Causey: It is a wonderful kind of confusion. Reason is feds and retirees have so many choices. Most have 20 plans to choose from. Most private sector types are lucky to have 4. Also, government must be careful not to "tilt" any information in favor of one plan. IT is a mess, but a good mess.

Washington DC: Is the open season for health insurance over?

Mike Causey: The general health insurance open season ended Dec. 8. But you can have your own personal open season if you get married, or divorced, become eligible for Medicare or are in an HMO and move outside the HMO area of coverage.

Huntsville, AL: Has President Clinton signed the order allowing SES members to receive the FY 98 pay raise?

Mike Causey: No but he will shortly!

Dayton, Ohio (again): And another thing.

About the American Express card that we Defense employees are expected (coerced) to use for travel. All I can see is the government has shifted some of its responsibilities to my shoulders. I have to pay the bill when it comes in, not the finance office. It's my credit rating that AmEx threatens, not the government's (they prove daily they don't care about paying bills on time).

Anyway, the idea was to save government money. Has it?

What about the story a week or two ago about the millions of dollars that Army employees were late in paying to AmEx. Will the Army eventually have to pay if the employees don't?

Comment please. And thanks.

Mike Causey: When the program started it was with Diners Club. Whoever gets the government business gets lots of business. Many private firms (including the Wash Post) use the Amex corporate card. Idea is to settle your bills monthly, and gig both the traveler and the accounting department. There will always be horror stories with anything this big.

Alexandria, VA: What motivates one to work in the federal government? Service to our country? Secure salary and retirement? Personal fulfillment? Political intrigue? Something else?

Mike Causey: There are 2.8 million feds, and maybe 2.8 millions reasons. In Defense and law enforcement agencies, often it is patriotism, etc. Same for other agencies. In some cases it is the largest (as in Washington) employer. Government service_like other professions, also runs in some families.

Bob Levey: Many thanks to our guest, The Washington Post's Federal Diary columnist, Mike Causey. Be sure to join us next Tuesday, Jan. 6, from noon to 1 p.m. Eastern time, when our guest will be Washington Post aviation reporter Don Phillips. Our guest on Jan. 13 will be Ralph Neas, candidate for Congress in Montgomery County's Eighth District.

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