The Foreign Service Journal, September 2003

SEPTEMBER 2003 • AFSA NEWS 7 AFSA NEWS BRIEFS Continued from page 5 AFSA/Thursday Luncheon Group Intern The Charles Delmar Foundation pro- vided a $1,000 grant to assist AFSA in funding the AFSA/Thursday Luncheon Group intern. Jennifer Tuck, a rising senior majoring in political science at Spelman College, worked in the State Department’s Indonesian and East Timor Office from June to August. The TLG, a State Department group promot- ing Foreign Service advancement for African Americans, also provided a $1,000 stipend to Jennifer. Protecting Prescription Drug Benefits In a June 25 update message, AFSA alerted members to a move on Capitol Hill to reduce prescription drug benefits for federal government retirees. The good news is that on July 8 the U.S. House of Representatives passed legislation (H.R. 2631) to protect the prescrip- tion drug benefits of retired employ- ees who participate in the Federal Employees Health Benefits Plan after Congress approves prescription drug legislation. FEHBP options include more generous drug coverage than the two Medicare bills passed by the House and Senate. The legislation is a response to the concern that newMedicare reform legislation would be an incentive for employers to reduce employer-spon- sored drug benefits of retirees. In this regard, the Congressional Budget Office estimated that as many as 37 percent of retired work- ers with employer-sponsored health plans, such as FEHBP, would lose drug benefits. AFSA joins the National Association of Retired Federal Employees in applauding House leaders for protecting the hard-earned retirement benefits of federal workers and their families, and for setting a standard for employers generally. AFSA also thanks our members who contacted members of Congress in response to our June 25 message on this issue. ▫ ON THE HILL Legislative Update BY ALISSA GORDON, LEGISLATIVE AFFAIRS INTERN O ver the summer, Director of Congressional Relations Ken Nakamura and AFSA officers continued to push AFSA’s legislative agenda on the Hill. AFSA met with manymajority andminority staffers fromthe Senate ForeignRelationsCommittee and the House International Relations Committee to discuss the authorization bills. The following items are in both the Senate andHouse authorization bills, andwill become law once these bills are passed: • Raise the cap on post differential for hardship and danger from25 percent to 35 per- cent of base pay; • Place a deadline for the Office of Personnel Management to implement last year’s law allowing certain PITs to buy back retirement credit; • Expand theMillenniumChallenge Account’s Corporate Board to include the admin- istrator of USAID. There are several items that are in either the Senate or House authorization bills, but not both. These provisionswill be discussed in a conference between theHouse and Senate: • Language creating an ombudsman for the State Department covering both the Civil Service and the Foreign Service (AFSA does not support this initiative); • Amending a change in last year’s authorization bill to restore prescriptive relief for Foreign Service personnel who have a grievance under consideration by the Grievance Board; • Amending the 5-percent low-ranking rule to give selection boards the discretion to low-rank a smaller percentage of employees; • Giving the Secretary of Statemore discretion towaive dual-compensation limitations on Foreign Service retirees who return to work for the department (AFSA is supporting the department’s proposal). APPROPRIATIONS: During July, the appropriations processwent into full gear. TheHouse Subcommittee on Commerce, Justice and State recommended appropriations of $8.286 billion for State operations, which is $233 million below the administration’s request, but $246 million above Fiscal Year 2003. The House Subcommittee on Foreign Operations recommended appropriations of $17.1 billion for foreign assistance. TAX BILL: At the end of May, the AFSA-supported bill to amend current law regarding the exclusionof the capital gains tax on the sale of the principal residence by ForeignService and Armed Forces personnel was added as an amendment to Congress’ $350 billion tax bill (PL 108-27), but was dropped at the twelfth hour. A new avenue for the capital gains tax bill arose in June, when it was added as an amendment to the House version of the child tax credit bill, H.R. 1308. It is unclear whether the capital gains provisionwill remain in the final version of the bill. AFSA is committed to pushing for this until a provision is enacted into law. HUMAN CAPITAL: AFSA has been monitoring legislation that would create a separate personnel system for Department of Defense civilian personnel, and would also allow for a system with pay banding and pay-for-performance for DOD civilian employees. Additionally, there is also pending legislation that would create a “Human Capital Performance Fund,” which would allow for departments to submit plans to allow for pay-for-performance. AFSA is following these trends to assess the implications for the Foreign Service. REMINDER: Please don’t forget that AFSA’s legislative affairs efforts are fundedbyAFSA membership. Donations are critical andappreciated. Pleasemail your contribution toAFSA Legislative Action Fund, PO Box 98026, Washington, DC 20090-8026 or click on www.afsa.org/lafform.cfm. ▫