Senator says promises made must be promises kept 

WASHINGTON, D.C. – U.S. Senator Barbara A. Mikulski (D-Md.), this week sent a letter to U.S. Treasury Secretary Timothy F. Geithner, urging him to protect federal employee pensions during the budget process. Right now, the Department of the Treasury is borrowing billions from the federal employee pension funds to avoid America defaulting on its debts after reaching the debt limit. These same pensions, that are currently helping to avert a fiscal disaster, have been targeted for cuts in recent debt-reduction negotiations.

“I value the service of federal employees, and I know how important these benefits are to millions of middle-class families,” Senator Mikulski said. “Promises made must be promises kept. We must not put federal employee pensions on the chopping block in budget reduction negotiations.”                                                

The full text of the letter follows: 

Timothy F. Geithner
Secretary
Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220

Dear Secretary Geithner: 

I write out of concern for our hardworking federal employees and the pension funds that they have paid into over their working lives. Federal employee pension funds are being used to prevent a fiscal disaster, and federal worker’s pensions are being targeted for cuts to balance the budget.

Right now, the Department of Treasury is borrowing billions from these workers as part of a series of emergency measures to prevent the catastrophic consequences of hitting the debt ceiling. This is not the first time that federal employee pension funds have been used to prevent the government from defaulting on its debts. It is the fifth time in fifteen years. Each time, federal employees are told “Don’t worry—your retirement savings aren’t at risk,” but Congress has tested the faith of our federal workers repeatedly.

These men and women are dedicated and duty driven. They are on the frontlines protecting America every day securing our borders, inspecting our food, and performing critical health research. They deserve a decent wage, safe working conditions, and our thanks and respect. 

Unfortunately, rather than being recognized for their contributions, federal employees have become scapegoats for the financial problems our nation faces.  They have already been subject to a two-year pay freeze.  But that wasn’t enough. Now, some Members of Congress and Administration officials are asking federal workers to contribute significantly more to their retirement plans—a proposal that would essentially lead to a 5 percent pay cut. 

I value the service of federal employees, and I know how important these benefits are to millions of middle class families. Promises made must be promises kept. We must not put federal employee pensions on the chopping block in budget reduction negotiations.

Sincerely, 

Barbara Mikulski
United States Senator

                                                           
DATE:            May 18, 2011

TO:                 Fourth District Local President                     

FROM:            Joseph P. Flynn 
                      National Vice President

SUBJECT:      EXECUTIVE ORDER 13522 and LABOR/MANAGEMENT FORUMS

 The Federal Labor Relation Authority and the Veterans Affairs have produced an online interactive training program on EO 13522 and L/MFs. The program is posted on the Office of Personnel Management’s (OPM) HR University. The course is open to all federal employees who have a government email address at HR University (www.hru.gov ).  You can set up an account at HRU and click on “Course Catalogue” to find the link to “EO 13522” training. The program is also available through a public link to the VA’s Human Capital site ( http://web01-002.sradev.com/vahracademy.com/flra.html ).

District 4 staff has reviewed this program, which runs approximately an hour and thirty minutes, and found it to be worthwhile.  I encourage all Local officers and representatives to take this training.  You may also want to propose to your management counter parts that the program be taken jointly. 

·         Contribute 7% of salary to their defined benefit pension plan.

·         Do not contribute to social security and are not covered by social security.

Federal Employees Retirement System (FERS) employees pay approximately 12% of salary for retirement benefits:

·         Pay 6.2% of salary to social security.

·         Pay .8% of salary to their defined benefit pension plan.

The Simpson-Bowles recommendation would require FERS employees to contribute approximately 7% of salary to their defined benefit pension (instead of .8% contributed now).  As a result, employees would have to contribute more than 18% of salary for retirement benefits:

·         6.2% of salary to social security

·         7% of salary to their defined benefit pension

·         5% to the TSP

Total:  18.2%

For most federal employees, 18.2% is too much to spend on retirement.  Their current living expenses, i.e. housing, transportation, food, child care, clothing, etc. would make that amount impossible.  So they would be forced to withdraw their contributions to the TSP, in order to have enough to contribute 7% to their defined benefit pension.  By removing their contributions to the TSP, they would lose out on future earnings of their own savings, as well as the 5% government match.  The increased contribution to the defined benefit pension coupled with the loss of the government match to the TSP would effectively be a 10-12% pay cut.

The District celebrated the retirement of  National Representative Reinhard Witiak at a reception held on February 21, 2010 in Washington, D.C. Over the course of three hours, members, staff, elected officers and co-workers mingled and ate fresh made food and all they cared to drink. The Billy Goat Bar hosted the reception. N.R. Witiak was presented with retirement honors by Communications Workers of America-Federation of National Representatives Local 2385 and his dear friends and co-workers from District 4. Additional "treasures" given N.R. Witiak included Bass Pro Shops Gift Certificate, Dicks Sporting Goods Gift Certificate and a fine spinning reel by Shimano. The reception was graciously sponsored by District Four National Vice President Joseph P. Flynn who set yet another high standard for other AFGE leaders to attain.

Since 2010 started, we've added two new District 4 Locals to our great group.  The first, Local 423 has been chartered to represent United States Coast Guard employees in the Coast Guard Finance Center and Atlantic Area and District 5 Command Groups, located in the Tidewater, Virginia Area. The Local is part of the recently consolidated bargaining unit of Coast Guard AFGE-represented employees. 

The second Local represents Transportation Security Administration Employees assigned the Raleigh/Durham International Airport in North Carolina. Local 449 is led by a TSA officer who has already attended one AFGE Legislative Conference and is ready to move forward with improvements to working conditions for the employees at the airport. District Organizers Kevin Droste and Glen Stolberg shared expertise and guidance in the organizing efforts at that location.

Welcome All !!

During a week of focused organizing in District Local 3509 offices, more than 15 new members joined the Local. In addition, details and action plans related to the Contract Campaign were shared and support encouraged.  District National Organizer Ann Robinson assisted Local 3509 leadership visiting SSA Offices in the Atlanta, Georgia area. Local 3509 represents many Social Security Field Offices in a several State area. Local Activist David Sheagley assisted N.O. Robinson with support from Local officers and other staff. Great Work !!

The organizing in Atlanta followed a successful two - week series of events in South Carolina that brought more than 20 new members into our Union and Local 3509.  Lead organizer for the South Carolina swing was N.O. Kevin Droste. Kevin was assisted by AFGE Organizing Institute graduate Mr. Jimmy Botts for the week of October 26th. During the week of November 6th, Mr. Jorge Moyett helped by applying his Organizing Institute training for that week.

These events and others in the Social Security Administration Field Offices are the result of coordinated planning and support within the Council 220, Local 3509 and District 4 in support of ongoing bargaining for a new Master Agreement.