NTEU News Service
September 19, 2002


Double-digit FEHBP Increase For 2003,
NTEU Backs Greater Government Share Of Costs

   Following the announcement of double-digit increases in health care costs in the coming year, NTEU President Colleen M. Kelley called for quick congressional action on pending legislation to raise the share the government pays toward federal employee health insurance premiums.

   The Office of Personnel Management (OPM) announced this week there will be an average 11.1 percent increase in premiums in 2003 for those enrolled in a Federal Employee Health Benefits Plan (FEHBP).  This marks the third year in a row that FEHBP increases have been above 10 percent.   

      NTEU continues its strong support of legislation (Senate bill S.1982 and House bill H.R. 1307) that would increase the government's share of FEHPB premiums to an average 80 percent from the current 72 percent. Other large employers, as well as many state and local governments, commonly pay 80 percent or more of their employees' health care premiums.

   Kelley said federal workers "should not continue to bear the burden of a disproportionate share of sky-high premium increases."

OPM Moves Forward On Flexible Spending Accounts

    OPM also announced this week that Flexible Spending Accounts (FSA) are set to begin for federal workers in July 2003.

   FSAs allow employees to deduct specific amounts of money on a pre-tax basis from their salary to be used for out-of-pocket health and dependent care expenses. Under the OPM plan, federal employees initially will be able to set aside up to $3,000 into an FSA for out-of-pocket medical expenses. The limit for dependent care for federal employees will be at the Internal Revenue Service limit, currently $5,000.

   NTEU has long worked in support of FSAs for federal workers.  NTEU National President Colleen M. Kelley had urged OPM to move ahead with FSAs earlier this year during a meeting with OPM Director Kay Coles James.

   Kelley said that an FSA program for federal workers will offer some relief to federal employees who have seen health care costs rise at a rate that is significantly higher than their pay has increased.  However, she said, the FSA program is not a substitute for enactment of legislation increasing the government's share of FEHBP premiums.

Senate Continues Homeland Security Debate

  The debate over the creation of a Department of Homeland Security continues in the Senate.

   NTEU supports provisions of a Senate bill (S. 2452), sponsored by Sen. Joe Lieberman (D-Conn.) and approved by the Senate Governmental Affairs Committee, which provides a balanced approach to creating the new department.  It includes language to protect the collective bargaining rights and civil service protections employees currently have, while providing some new government-wide personnel flexibilities proposed by the president.

   NTEU continues to oppose the House-approved version of homeland security legislation (H.R. 5005).  This bill would allow two political appointees, the Secretary of Homeland Security and the Director of the Office of Personnel Management (OPM), to unilaterally adopt and change the personnel policies that would govern the new department including the pay system, due process procedures and labor-management relations.

   NTEU President Colleen M. Kelley applauded the work of NTEU members and chapters in their legislative efforts on the homeland security legislation.
 
   "NTEU chapters and members have really stepped up to the plate on this issue," said Kelley.  "While the proposal most directly affects NTEU-represented Customs Service employees, calls and personal contacts have been made by members from every federal agency where NTEU represents employees."

   The union leader said there is a recognition that this is just the latest attempt by the administration to "trample the rights of federal employees."

   NTEU participated with prominent senators in a recent Capitol Hill rally in support of the Lieberman bill.  Terrorists are the enemy, Senator Lieberman told the cheering crowd, not unionized federal employees.

Pay Raise Update

   Congressional action is still needed to secure a NTEU-backed 4.1 percent federal civilian pay raise in 2003.  The administration had asked Congress for a 2.6 percent pay raise for federal civilian employees and 4.1 percent for the military in 2003.

   NTEU secured congressional support for a 4.1 percent pay raise for both civilian and military employees.  Both the House and Senate FY2003 Treasury Appropriations bills contain the 4.1 percent pay raise.  The House has passed its bill and the Senate is expected to pass its bill in the coming weeks.

   "Congress is on record, thanks in no small part to the work of NTEU members and chapters, in support of a 4.1 percent pay raise in the coming year.  We must continue to contact members of Congress in support of funding for the 4.1 percent pay raise," said NTEU National President Colleen M. Kelley.

   For legislative updates, visit the NTEU web site (www.nteu.org) or call the NTEU Legislative Hotline at 202-783-4444, ext.1203.

NTEU Member Only Professional Liability Insurance

   To help protect NTEU members from potential lawsuits filed based on acts, errors or omissions committed in the performance of their official duties, NTEU and The Insurance Exchange developed a low-cost Professional Liability Insurance Plan available to NTEU members only.

   This insurance program provides counsel, without limitation, to defend any suit for damages, even if the Department of Justice delays or declines representation.  In addition, the policy pays all sums, up to $1 million that a member may be obligated to pay based on a lawsuit and provides administrative expense coverage.

   For more information on this NTEU exclusive member only benefit, contact The Insurance Exchange at 1-800-346-1403 or your local NTEU chapter office.
 
   Visit the Member Benefits Section on the NTEU web site (www.nteu.org) to find out more about all the NTEU member only benefits currently offered.