AFSA was disappointed to learn late last week that the Department had decided not to confer the monetary portion of Meritorious Service Increases (MSIs) for those recommended by last summer’s selection boards (STATE 56124). For the past several months AFSA has advocated on behalf of last summer’s 554 MSI recipients (STATE 20522). We urged the Department’s senior leadership to honor our colleagues’ promotion-worthy performance with the deserved monetary component in accordance with the negotiated procedural precepts. Since the Department has opted not to do so, we are filing an implementation dispute on behalf of the MSI recipients.

Negotiated Procedural Precepts

The Department has a negotiated agreement with AFSA, the exclusive representative of the Foreign Service, in the form of the promotion procedural precepts. For more than 20 years the Department and AFSA have agreed to recognize colleagues who were recommended by the selection board for promotion, but for whom there were no available promotion opportunities, with an MSI instead. Over time this practice has become a part of the terms and conditions of employment – any change to which must be negotiated with the exclusive representative. AFSA believes that this decision constitutes such a change.

OMB/OPM Guidance

At the time of the 2013 sequester AFSA agreed to Department-proposed language in the procedural promotion precepts that required the Department to pay the MSIs, “if authorized.” AFSA understands that phrase to denote relevant provisions of law or any budgetary requirement imposed by OMB/OPM, wherein the Department does not. The two parties agreed to the procedural precepts following the February 27, 2013 OMB guidance that limited monetary awards across the federal government. [Subsequent guidance clarified that this suspension of monetary awards did not apply to QSIs or MSIs.] In November 2013 OMB/OPM issued new guidance that permitted the Department to pay awards that had an effective date in Fiscal Year 2014, which would have allowed the Department to award last summer’s MSIs.

The Department recognizes its ability to pay last summer’s MSIs, but has chosen not to do so. The Department of State is the only foreign affairs agency that has not yet paid out its MSIs from 2013.

FS Personnel System

The Foreign Service personnel system is up-or-out with competitive promotions recommended by peer boards. The MSIs are part and parcel of this personnel system and play a particularly important role in those specialties in which promotion opportunities and career advancement are already limited. The majority of last summer’s MSI recipients are specialists, with the largest group being DS agents followed by IRM specialists. The MSI impact, a financial step increase or cash payment, stretches beyond one’s active duty career into retirement and the calculation of pension payments.

Dissent and Implementation Dispute

While AFSA’s preference is to work together with management to address the challenges facing the Service, at times it must respectfully disagree and dissent. This is one of those times. AFSA will file an implementation dispute on behalf of its 554 colleagues the merits of which will ultimately be decided by the Foreign Service Grievance Board, if not resolved at the agency level. We encourage all of our members to stand by their Department colleagues at this time. AFSA will continue to work with the Department in other areas to make it a better, safer, and more rewarding place to serve for all Department employees.

Please feel free to reach out and email AFSA@state.gov should you have any questions or comments.

Regards,

Matthew Asada
AFSA Vice President, Department of State