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Building a Foundationfor Meritin the Twenty-first Century
A TWENTY YEAR RETROSPECTIVE OFTHEU.S. MERIT SYSTEMS PROTECTION BOARD 
1979-1999   

Building    a Foundation for Merit in the     21st Century      January 1999

        A 20-Year Retrospective of the U.S. Merit Systems Protection Board       1979-1999

It  is the policy of the United States that in order to provide the people  of the United States with a competent, honest, and productive Federal work  force reflective of the Nation's diversity, and to improve the quality  of public service, Federal personnel management should be implemented consistent  with merit system principles and free from prohibited personnel practices.Civil Service Reform Act of 1978
In 1978, with the passage of  the Civil Service Reform Act (CSRA), the Federal Government experienced  its first comprehensive reform of civil service law in nearly 100 years.  Among its important and far-reaching reforms, the Act created a new entity--the  U.S. Merit Systems Protection Board (MSPB)--as a guardian of the merit  systems. For the first time, there was an independent forum within the  executive branch to resolve disputes between agencies and their employees  fairly and rapidly. And, although the CSRA abolished the bipartisan Civil  Service Commission, the framers of the Act were careful to provide a bipartisan  oversight function within the MSPB to examine and report on the health  of the Federal merit systems. For these reasons, the independent MSPB became  one of the cornerstones of the reform introduced by the CSRA.

The CSRA guaranteed the independence      of the MSPB by establishing a bipartisan three-member Board (each of whom      serves a seven-year fixed term and is removable only for cause); legislative      by-pass authority; and independent litigating authority. Now, two decades      later, as we move into the 21st century, we celebrate the success of CSRA      reforms and the MSPB's record of excellence in protecting merit in the      civil service, and we also reexamine the lessons learned over the past      20 years while looking continually for opportunities to improve.
       MSPB--A Record of Excellence 
In its first 20 years as an adjudicator, theMSPB has decided almost 200,000 cases. It has established a comprehensivebody of precedential law to guide Federal agencies and employees. Its earlydecisions set key standards: the Board required judges to identify materialissues of fact, set out the evidentiary basis for findings of fact, explaincredibility determinations, address the burdens of proof, and support conclusionsof law.

One           of the far-reaching provisions of the CSRA authorized the Board to use           settlement initiatives to resolve cases. Avoiding the litigation step--and           the stress, loss of working time, and expenses that go with litigation--is           particularly significant in workplace disputes where a continuing agency-employee           relationship and open lines of communication are important. The MSPB           has taken the lead in using alternative dispute resolution techniques           to settle cases. Last year it settled a record high 54 percent of cases           not dismissed on jurisdictional or timeliness grounds. 
When cases must proceed to litigation, timelinessof decision-making is critical. Timely resolution of appeals of agencypersonnel actions benefits all parties, as well as the taxpayers who fundGovernment activities. The MSPB's record of timely decision-makingis unmatched.The Board consistently processes cases through the initial appeal and decisionstage within less than its self-imposed standard of 120 days. Even now,when an agency or an employee requests a full Board review of an initialdecision, the total time for both stages of review is only about 10 months.
Another important measure of the Board's performanceis its record before the U.S. Court of Appeals for the Federal Circuit,the Board's principal reviewing court. In FY 1998, 92 percent of the Board'sdecisions were left unchanged by the court That enviable record has beenconsistent over the years.  
**The CSRA oversight requirement--envisioned as a neutral,   broad assessment of the h********ealth   of the merit systems--has proven to be an effective means to ensure that the   hard questions are addressed, and even unpopular answers reported. The oversight   responsibility ensures that the Board's role in protecting merit goes beyond   remedial actions taken in response to individual employee appeals. Protection   of merit is also assured by the fact that there is built into the MSPB an evaluation   and long-range strategic planning mechanism for human resources issues. This   mechanism is increasingly important as government downsizes, and as personnel   functions are decentralized and deregulated.**
**Over the years, the Board has reported   the good news--and the bad--on a range of issues critical to the operation of   a merit system. The Board has taken an in-depth look at issues such as the Government's   recruiting and selection processes, the quality of the workforce, performance   management, workforce diversity, supervisory selection, employee development,   temporary employees, and poor performers. On these and other issues, the MSPB   has established benchmarks that are used to guide the inquiries of ************others   both within and outside the Governme****nt. Most recently, Vice   President Gore's National Partnership for Reinventing Government used some of   the measures established by the Board when conducting its own Governmentwide   survey of employees' attitudes towards reform.**
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**Moving Into the 21st Century**
**In the next century, the MSPB anticipates continued pressures for the  Government to provide better value for each tax dollar. We have already  seen the effects of reexamining and refashioning how the Government operates--a  Federal workforce smaller by almost 15 percent, fewer regulations, more  delegated authority, and an emphasis on improved customer service. Such  an environment demands continuing efforts to make the Board's work a positive  force for better government.**
The MSPB has taken the lead in streamlining its operationsand positioning the agency to use technology to handle its caseload moreefficiently. Although the Board hears cases throughout the world and has broad Governmentwide oversight responsibilities, it performs theseresponsibilities with about 250 employees--down 40 percent from 1983. Effectivelyhandling the same or increased workload with so many fewer workers presentsa major challenge for the Board as it moves into the 21st century.

To handle the continuing high volume of cases with areduced staff, the MSPB has transformed its workplace, coupling technologywith better use of its workforce. It has increased its employees' productivitythrough technology. It has retrained administrative employees to performparalegal tasks and contracted out non-core functions like payroll andpersonnel. It has implemented family-friendly workplace concepts, fromflexible work schedules to work-at-home arrangements. And, yes, the Boardwill be conducting business a year from now. It expects to complete Y2Kvalidation by June 30, 1999.
The MSPB is currently working with contractors on aproject that is designed to lead to a fully electronic environment in whichappeals can be filed electronically or scanned into electronic files andall case files can be maintained electronically. The stacks of paper casefiles wheeled through MSPB offices in shopping carts will be replaced byelectronic files in computer databases that can be accessed from employees'desks. Laws, legislative histories, regulations, and Board and FederalCircuit precedents will all be available instantly. The Board currentlyhas a pilot project underway with the Federal Circuit to implement electronicfiling in cases before the court.
The MSPB oversight staff is also increasingly makinguse of automation, including expanding use of the internet for both researchand dissemination of its findings and recommendations.
On the cusp of the new century, the MSPB looks backwith pride and forward with confidence. Whatever the new challenges, theMSPB is committed to the job it was first given by the President and theCongress 20 years ago--to protect Federal merit systems through fair andimpartial adjudication of personnel matters and through studies designedto ensure that Federal human resources are managed according to the meritprinciples.
The summary that follows is a tribute to all the Boardmembers and employees whose diligent efforts and wise choices over theyears have brought us to the achievements of today and have equipped uswell to meet the challenges of tomorrow.
Laying the Groundwork MSPB, 1979-1983

When the Board began operations in January 1979, itwas staffed by 289 employees transferred from the Civil Service Commission.The field office structure of the Commission's Federal Employee AppealsAuthority (FEAR) was also transferred to the Board. Along with those employees,the Board inherited a backlog of almost 5,000 cases. And, under the ReformAct, it received over 3,600 new cases.
Basic to the new adjudicatory system was the Board'scommitment to provide appellants and agencies with well-written, well-reasoneddecisions. It decided early on to require that all of its hearing officersbe attorneys. To eliminate the delays previously associated with the handlingof employee appeals, the Board set up an internal 120-day timeframe toresolve appeals. It established procedures to facilitate the discoveryprocess, such as requiring agencies to submit the entire agency file aspart of its response to the filing of an appeal. And, unlike those of theFEAA, the MSPB's decisions were precedential and published.
Just eight days after the effective date of the CSRA,the new Board published interim regulations governing its appellate procedures.Within three months, final regulations were in place. The regulatory frameworkestablished in 1979 has served well both the Board and the parties appearingbefore it., Indeed, this regulatory framework, amended over time to reflectchanges and revised to use plain English, remains in place twenty yearslater.
The Board's regulations spelled out the two-level reviewprocess required by statute, the first level permitting a full hearingand the second providing review by the three member Board. Parties hada right to be represented before the Board. Regulations provided for discovery,the issuance of subpoenas, applicable burdens of proof, and payment ofattorney fees. The Board also detailed the scope of its appellate jurisdiction,the information to be filed by the parties in an appeal, the authorityof the hearing officers in conducting a hearing, and a prohibition against    *exparte* communications.

Early Decisions -The Legal Foundation
**In its early cases, the Board took care to establisha sound substantive and procedural framework for the new personnel law.Both *Griffin v. Department of Agriculture* and *Losure v. InterstateCommerce Commission* provided significant rulings on agency reduction-in-force(RIF) actions. In *Griffin*, the Board concluded that it has no authorityto review management considerations underlying agency discretion to conducta RIF. In *Losure*, the Board set forth the rule that the burden ofproof in demonstrating that RIF procedures have been properly invoked restson the agency. *Parker v. Defense Logistics Agency* addressed agencydenials within-grade increases, ruling that an agency must meet a substantialevidence standard of proof and that an appellant bears the burden of establishingan affirmative defense in alleging harmful error by the agency. The Board'snew authority to award payment of attorney's fees to prevailing appellantswas interpreted in aseminal decision, *Allen v. U.S. Postal Service*. Requirementsfor the initial decisions issued by MSPB administrative judges (then called "presiding officials") were set forth in *Spithaler v. OPM*, and theBoard's review of fact-finding by its administrative judges was describedin *Weaver v. Department of the Navy*. In *Douglas v. Veterans Administration*,the Board established the basic precedent controlling an agency's selectionof penalty in an adverse action case.**
Since the Federal Circuit was created, it has allowed the Board's decisions to stand--either through dismissal of the case or affirmance of the Board's decision--in 92 to 97 percent of the MSPB cases reviewed.
**Important to the development of a consistent and predictablebody of civil service law was the judicial review scheme established bythe CSRA. Previously, Civil Service Commission decisions could be appealedto Federal district courts and then to the circuit courts of appeals, resultingin diverse interpretations of civil service provisions. The CSRA placedreview of MSPB decisions primarily in the circuit courts of appeals. In1982, the Congress established the U.S. Court of Appeals for the FederalCircuit, which has been the Board's principal reviewing court ever since.**

The Air Traffic Control Cases 
**Despite start-up difficulties largely engendered by inadequate funding, the Board was clearly on the right track. By the end of 1979, the backlog of CSC cases had been reduced to just over 1,100; new cases at the field office level were being processed in an average of 100 days; and the Board had in place the outlines of a body of law that set the ground-work for protecting the merit principles well into the future.**
On the operational side, the Board also undertook a  major initiative--its first computerized case-tracking system. With two  mainframe computers, the Board was equipped to use technology to monitor  its work. A research system was set up to increase access to the Board's  rapidly developing case law. Also important to MSPB headquarters employees  was the move to new offices at 1120 Vermont Avenue, NW, leaving behind  the clearly inadequate space at its initial location.  
The Board's systems and operations were now established,but the newly created appeals system was to undergo a major test in 1981.In the wake of the Federal Aviation Administration air traffic controllerstrike and the subsequent firing of the striking air traffic controllers(ATCs), more than 11,000 appeals from ATCs were filed with the Board. TheBoard, with some 300 employees, suddenly had to handle an influx of casesalmost twice its prior workload. And it had to do so in the face of a reducedbudget. In fiscal year 1981, there was an across-the-board cut in fundingfor Federal agencies, and the continuing resolution passed at the end ofthe year reduced MSPB's budget by 16 percent. The combined impact of thebudget cuts and the ATC appeals forced the Board to implement severe cost-cuttingprocedures, including suspending hearings from December 1981 to February1982. When hearings were resumed, they were held only in the regional offices,and a ban on travel continued until July 1982.
The Board was forced to take additional space on thetop floor of 1120 Vermont Avenue, NW (immediately dubbed the "ControlTower," given both the elevated location and the nature of the cases),just to handle the 11,000-plus air traffic controller case records. 
The ATC cases were the central fact of life at MSPBfor the next three years. Throughout 1982 and 1983, the regional officesworked through the more than 11,000 ATC appeals, as well as the usual caseloadof other appeals, ultimately issuing almost 19,000 initial decisions in1983. The action on the ATC appeals then moved to the Board's headquarterslevel, where almost 3,900 cases were decided in 1983, and over 5,200 in1984. Despite an increase in the combined headquarters/regional staff to420 in 1983 (an all time high), long hours were the rule, with employeessometimes working until midnight and returning a few hours later to startanother day.
The MSPB's ability to produce in such record numbersis the more remarkable given that it managed this caseload while dealingwith another budget crisis. Because requested emergency supplemental appropriationswere not provided by Congress until July 1982, the Board was forced toorder a furlough. Almost all employees were placed on a half time scheduleso that work on the monumental caseload could continue, within budgetarylimitations.

First Merit Systems Studies
During this extraordinary period of litigation, the Board also shoulderedits oversight responsibility. In March 1981, the MSPB issued a landmarkreport on sexual harassment in the Federal workforce--a study undertakenin response to a specific request from the Congress--that became a benchmarkfor later studies. In June 1982, the Board issued the first in its continuingseries of reports on OPM significant actions. In these early years, theBoard also conducted two studies of whistleblowing in the Federal Government,making an important contribution to Congress's development of the WhistleblowerProtection Act.
Between 1984 and 1992, the MSPB built on its initial successes. Congressgreatly expanded the Board's jurisdiction, giving employees new appealrights and adding new employee protections. The Board continued to establisha solid body of case law while handling a high volume of cases. It alsoturned its attention to alternative dispute resolution (ADR), reflectingits commitment to making the appeals process work better. And it made humanresources oversight and studies a greater priority.
Strengthening the Foundation to Protect the Merit Systems
MSPB, 1984-1992

Expansions of Jurisdiction and Increase in Caseload  
**The Congress has repeatedly demonstrated its commitment to protecting themerit systems--and the Board's role in implementing those protections--byexpanding the MSPB's jurisdiction. During this period, over 300,000 Federalemployees gained MSPB appeal rights and others gained new protections ina series of laws.**- The Postal Employee Appeal Rights Act of 1987 (Public Law 100-90) broadenedthe scope of MSPB appeal rights to allow approximately 35,000 non-preferenceeligible Postal Service supervisors, managers, and employees engaged inpersonnel work to appeal adverse actions to the Board. 
-     In 1989, Congress determined that whistleblowers needed special protections    and additional remedies. The Whistleblower Protection Act (WPA) (Public    Law 101-12) created a new cause of action, authorizing whistleblowers to    bring their cases directly to the Board if the Office of Special Counsel    (which was separated from MSPB and made an independent agency by this Act)    declined to seek corrective action for them. The Act authorized whistleblowers    to seek (from MSPB) stays of personnel actions, broadened the prohibited    personnel practices statute to cover threatened or proposed actions in    reprisal for whistleblowing or the exercise of an appeal right, gave the    Board the power to issue orders to protect a party or witness from harassment,    and authorized the Board to order interim relief for a prevailing appellant  if the agency petitioned the Board for review of the initial decision.  
-     About 6,000 employees of abolished thrift institution regulatory agencies    who had been transferred to the Treasury Department's Comptroller of the    Currency and the Office of Thrift Supervision gained MSPB appeal rights    under the Financial Institutions Reform, Recovery, and Enforcement Act  of 1989 (Public Law 101-73).  
-     Congress established a new appealable action for approximately 7,500 career    members of the SES--denial of the periodic recertification required to  remain in the SES--under the Ethics Reform Act of 1989 (Public Law 101-194).  
-     In 1990, enacting the Civil Service Due Process Amendments (Public Law    101-376), Congress provided approximately 100,000 non-preference-eligible    excepted service employees such as attorneys and teachers the right to  appeal both adverse actions and performance-based actions to MSPB.  
-     The Civil Rights Act of 1991 (Public Law 102-166) broadened the Board's    remedial authority to include the power to order payment of compensatory  damages to individuals who prevail on certain claims of discrimination.

**These expansions of jurisdiction--particularly the  new cases resulting from enactment of the whistleblower legislation--increased  appeals to the MSPB. The workload has remained steady since 1991 at about  10,000 cases a year, except for the spike in cases when appeals from the  U.S. Postal Service restructuring flooded the Board in 1992 and 1993.**

Alternative Dispute Resolution Initiatives

The wisdom of the CSRA's authorizing MSPB to use alternative  dispute resolution in settling disputes--well before the current popularity  of these techniques--has been borne out over time. The Board's early ADR  effort required the parties to waive certain rights in exchange for receiving  an expedited decision from the administrative judge. In 1987, the Board  adopted a broader policy favoring settlement. It endorsed a variety of  techniques to settle cases, including a standard practice of holding preheating  conferences in which settlement possibilities are discussed. As a result  of these efforts at the regional office level, the rate of settlement of  appeals that were not dismissed rose from 6 percent in 1984, to 18 percent  in 1985, and to 48 percent in 1988. The rate reached 50 percent in 1991  and has remained in that range.

The Board has since implemented an ADR process atheadquarters that currently results in settlement of almost 30 percentof cases selected for attempted resolution. Looking forward, the Boardis working towards establishing pilot projects to help agencies settlecases before they get to the litigation stage. MSPB receives between 8,000and 9,000 new appeals each year, and it appears that early interventioncould prevent some of these cases from becoming formal and adversarial.

Significant Decisions  
In 1984, the Board issued a series of important precedentialdecisions    interpreting the new performance appraisal system established by theCSRA. These included *Griffin v. Department of the Army* (requiringagency proof that the performance appraisal system relied upon in takinga personnel action had been approved by OPM); *Sandland v. General ServicesAdministration* (requiring agency proof that the employee was giventhe opportunity to demonstrate acceptable performance); *Callaway v.Department of the Army* (ruling that an agency action will be overruledwhere the agency abuses its discretion in creating performance standards);and *Shuman v. Department of the Treasury* (ruling that an agencyhas the burden of proving that a failure to perform some, but not all,of the components of a critical element warrants an unacceptable ratingon the element as a whole).
In 1985, *Ignacio v. U.S. Postal Service* becamethe first mixed case (one involving an action appealable to MSPB and anallegation of prohibited discrimination) in which the Board and the EqualEmployment Opportunity Commission (EEOC) issued differing decisions, requiringcertification of the case to a Special Panel for resolution. Although theCSRA set up an elaborate procedure for such cases, it has rarely been invoked.Only four cases have ever been certified to the Special Panel and nonehave been referred since 1987.
In 1990, the Board issued important decisions interpretingits new whistleblower jurisdiction (*Lozada v. EEOC*, *Mulherinv. Air Force*, and *Godfrey v. Air Force*); the WPA provisionsgoverning stay requests (*Gergick v. General Services Administration*);and the WA savings clause (*Marshall v. Department of Veterans Affairs*and *Lundberg v. Navy*). Other important decisions focused on substantiveissues such as discrimination (particularly discrimination based on disability);the requirements for reasonable accommodation of a disability; chargesin adverse action cases; performance-based actions; back pay and complianceissues; Special Counsel complaints of prohibited personnel practices (especiallyreprisal for whistleblowing); Hatch Act violations; and numerous mattersinvolving retirement claims. In addition, the Board continued to add tothe body of case law interpreting its jurisdiction, timeliness requirements,and various issues relating to settled cases.

Commitment to Merit Systems Studies  
In 1987, the Board made a major commitment to increasedfunding and staffing of its other statutory mission-merit systems studiesand OPM reviews. The studies office was reconstituted as the Office ofPolicy and Evaluation (OPE), new staff members were brought on board, andan ambitious agenda of civil service research projects was developed. Amongthe significant reports issued based on this research are the following:-  *In Search of Merit: Hiring Entry-Level FederalEmployees*(1987) evaluated how candidatesfor entry-level positions in the Federal Government were hired in the yearfollowing abolishment of OPM's Professional and Administrative Career Examination.The constructive criticism offered in this report contributed to OPM'srevision of the procedures for entry-level hiring.
-  *Sexual Harassment in the Federal Government: An Update* (1988) was  a major followup to the Board's 1981 study of this subject and focused  even greater attention on the issue of sexual harassment in the Federal  workplace, leading to improved training programs and adoption of written  sexual harassment policies at many agencies.
-  *The Tennessee Valley Authority and the Merit Principles,* (1989)    the Board's first study of a Federal merit system not governed by Tide    5 of the U.S. Code, recommended that OPM and Congress consider the TVA's    positive experiences with its personnel system as they looked towards improving    the civil service. This report was followed in 1991 by a review of another    Federal merit system, *The Title 38 Personnel System in the Department  of Veterans Affairs: An Alternate Approach*.
Other important study reports produced during thisperiod included *Balancing Work Responsibilities and Family Needs: TheFederal Civil Service Response (1991), A Question of Equity: Women andthe Glass Ceiling in the Federal Government (1992),*and *FederalPersonnel Research Programs and Demonstration Projects: Catalysts for Change*(1992).In addition, the Board continued to conduct a triennial Merit PrinciplesSurvey, eliciting the views of a cross-section of Federal employees onvarious civil service issues, and to publish reports analyzing the surveyresults. As noted, this survey is particularly important in establishingbenchmarks by which later executive branch actions can be measured andevaluated.
In 1993, President Clinton appointed Ben L. Erdreich  as the MSPB's fourth Chairman. Mr. Erdreich had previously served in the  House of Representatives as the representative of the 6th District of Alabama.  Facing continued tightened budgets, Mr. Erdreich took the lead in reorganizing  the MSPB, reducing staff, reallocating assets, and adopting technological  solutions to operational issues.

 
Guiding Merit Systems Protection into the 21st Century
MSPB, 1993-Present

The Workplace Transformed 
The MSPB's restructuring initiatives furthered the goalsof both the Administration and the Congress on reinventing Government operations,management, and service delivery. A series of executive orders and memorandamandated an across-the-board reduction in Federal employment, specificreductions in middle management ranks, issuance of agency customer servicestandards, and elimination of unnecessary internal regulations.
Further impetus towards reinventing Government camewith the September 1993 release of the report of the National PerformanceReview (NPR), a report that referred to findings and recommendations fromMSPB studies to support its conclusions about the way the Federal Governmentought to work. Congress weighed in with enactment of the Federal WorkforceRestructuring Act of 1994, which mandated even larger staff cuts than thePresident had called for. Later, Congress enacted the Government Performanceand Results Act, which requires agencies to measure and report the resultsachieved by their programs.
The MSPB of today has fewer offices, fewer employees,and fewer internal procedures and regulations than the agency of 1993.Family-friendly flexible schedules are available in all MSPB offices andare used extensively. A number of employees have flexiplace arrangements,working from their homes through connections to the office computer network.Transit subsidies are available for employees who commute by public transitsystems.

Most visible of the changes at the MSPB is the new technology.All headquarters offices and regional offices are connected electronically.In addition to communicating and sending documents via email, employeescan share files and work collaboratively using local and wide-area networks.Direct internet access from desktop computers allows easy access to legalas well as other research tools.
The Board has used video conferencing equipment to revolutionizethe hearing process--and to reduce cost and time requirements for everyoneinvolved. With enthusiastic support from the parties involved, the videoconference serves as an alternative to the traditional in-person, courtroomstyle hearing, and saves transportation, per diem, and other expenses.Because this equipment can result in a $2,500 savings on a single hearing,it has great potential for significant long-term savings in the 1,300 hearingsthe Board holds each year. Perhaps more important are the time savingsand increased productivity that are possible when employees of the agenciesinvolved are able to return to work immediately after testifying.
In September 1998, the MSPB Video Conferencing Implementation Team was honored with the Vice President's prestigious Hammer Award for its contribution to reinventing Government.
**The MSPB relies on electronic information services tomake information easily accessible to agencies, employees, and other customers--andreduce costs for the Board. The agency first set up an MSPB library onthe Federal Bulletin Board.**
**Then, with the launch of its website in 1996, the Board made a giantleap into cyberspace. Customers now have 24-hour access via the websiteto Board decisions, study reports, press releases, regulatory changes,forms, publications, Board member biographies, and other information,along with links to related websites. In addition to launching the website,in 1996 the Board also implemented a 24-hour toll-free telephone number,which allows customers to leave messages to check on the status of appeals,request publications, or ask questions. Reports of merit systems studiesand oversight reviews of OPM have become the most frequently down-loadeditems from the website (along with *Issues of Merit*, the Board's  periodic newsletter featuring information drawn from MSPB research andstudies).**
The MSPB website is recording about 20,000 hits per month. You are invited to visit the site at www.mspb.gov. 
Looking towards the future, MSPB has undertaken a majorinitiative to design and develop an integrated document management andworkflow system that will include support and maintenance of imaged andelectronic case records. By the year 2000, MSPB envisions offering theadvantages of on-line submission and acceptance of appeals, briefs, andother case-related materials. The Board currently has underway a pilotelectronic filing project with the Federal Circuit. *Lachance v. Whiteand MSPB*, Federal Circuit Docket No. 98-3249 (involving the questionof whether the Board should use an objective or subjective test when judgingthe reasonableness of a whisdeblower's allegations) is the first case selectedfor this test.
In addition to the new technologies, changes in structureand reductions in staff mark today's MSPB. The restructured Board of 1998has directed its assets toward its adjudicative function. Several headquartersoffices with primarily management or review functions have been eliminated,reducing headquarters offices and administrative divisions from 14 to 10.Today, there are only five regional offices (reduced from 11) and fivefield offices. As part of this realignment, former regional directors becamechief administrative judges with direct case processing duties and fewermanagement responsibilities, while former administrative officers wereretrained as paralegals.
Retirements, outplacement assistance, and judicioususe of voluntary separation incentives provided by Congress all helpedthe Board streamline its staff with a minimum of disruption. In October1997, a reduction in force was implemented affecting support staff positionsat headquarters. With funds saved as a result of the RIF, the Board wasable to hire a number of temporary administrative judges and attorneys,staff directly involved in case-processing.
The Board also has eliminated staff whose functionscan be better performed outside the agency. For example, the Board usesthe Department of Agriculture's National Finance Center for payroll andaccounting, and its Animal and Plant Health Inspection Service for personnelservices, giving MSPB access to a large, expert human resources staff ata significant cost savings.
**The days of submitting purchase orders to the financeoffice and cutting checks to vendors are over. Most purchasing is donewith Government purchasing credit cards. In 1998, MSPB became the firstagency serviced by the National Finance Center to implement their new PurchaseCard Management System (PCMS). This system cuts the time spent on processingcredit card transactions. Almost all payments are made by electronic fundstransfer.**
What makes all of these changes particularly noteworthyis that during this restructuring process, the Board had to contend notonly with the largest caseload since the days of the air traffic controllercases, but also with expanded jurisdiction and new issues, as well as amore urgent need to provide oversight, as personnel functions were delegatedmore extensively throughout the Government.

A Spike in Cases--the Postal Service Restructuring  
In a major restructuring of the U.S. Postal Servicein late 1992, thousands of positions were abolished and several thousandemployees were separated or moved to lower-graded positions. In July 1993,the Board ruled that the USPS restructuring as it affected preference-eligibleemployees was an appealable RIF action (*Brown v. USPS* and *DiPietrov. USPS*). Based on the rulings in these cases, administrative judgesbegan reversing the USPS action in many of the RIF appeals, and more appealsfollowed.
In November 1993, the Director of OPM sought review of the Board's rulingon the Postal Service restructuring by intervening in two pending cases.Consequently, the Board stayed the processing of all the pending USPS restructuringcases until these lead cases were decided. June 1994, the Board issuedits final decisions in *White v. USPS and OPM*, and *Robinson, Diaz,and Yruegas v. USPS and OPM*, affirming its ruling in *Brown* and*DiPietro*.Soon afterwards, the Board issued its decision in *Marcoux v. USPS*,dismissing the appeal for lack of jurisdiction. (The case involved an appeal--bya Postal Service employee without veterans' preference--of an adverse action,rather than a RIF.) Within a couple of months, the Board had decided morethan 100 petitions for review arising from the USPS restructuring, in mostcases reversing the agency's action based on *White* and *Robinson*,and in the rest, affirming the agency action based on *Marcoux*.
Although the U.S. Postal Service cases did not have as severe an impact on the Board as the air traffic controller cases of the early 1980s, they did lead to the issuance in 1995 of more decisions than in any year since 1983. Largely as a result of these additional cases, the regional and field offices issued almost 11,000 decisions, and the Board, almost 2,300.
In the latter half of 1994, as word of these decisionsspread, the Board received a large influx of new appeals of the USPS restructuring.In addition, the question of whether USPS had complied with the Board'searlier decisions became a major issue, resulting in the issuance of twodecisions--*Sink v. USPS* and *Unhoch v. USPS*--that led to thePostal Service running a compliance RIF in mid-1995. The compliance RIF,in turn, led to a second wave of appeals to MSPB. In addition to the appealsof the merits of the USPS actions, there were numerous related cases, suchas requests for attorney's fees, petitions for enforcement, remands, andreopenings by the Board.
Altogether, the USPS restructuring cases accounted foralmost 4,000 MSPB decisions during the 1993-1995 period--over 3,200 inthe regional and field offices and almost 800 by the Board. 

**Continued Expansion of Merit Protections**
Congress's continued commitment to a merit-based civilservice is reflected in its recent expansions of appeal rights--again increasingthe number of Federal employees protected and the scope of the protectionsprovided.- The Foreign Relations Authorization Act, FY 1994-1995 (Public Law 103-236)extended MSPB jurisdiction to include certain RIF appeals filed by careermembers of the Foreign Service.
-     In 1994, the Uniformed Services Employment and Reemployment Rights Act    (USERRA) (Public Law 103-353) gave the Board statutory jurisdiction over    the reemployment rights claims of Federal employees called away to military    service. In addition, USERRA extended MSPB jurisdiction to include claims    of discrimination based on military service or status as a veteran in employment,  reemployment, or other rights and benefits of employment.
-     The 1994 reauthorization of MSPB and the Office of Special Counsel (Public    Law 103-424) extended whistleblower protections to about 73,000 employees    of Government corporations and extended coverage for all prohibited personnel    practices to approximately 55,000 health care professionals in the Department    of Veterans Affairs. This law also extended the coverage of the prohibited    personnel practices statute to new personnel actions. Finally, the law    provided the Board with new authorities to order payment of attorney's    fees in Special Counsel corrective cases and disciplinary action cases,    and to order payment of consequential damages (travel costs, medical expenses,    and other consequential damages) in both whistleblower cases and Special  Counsel corrective action cases.
-     With the enactment of the Presidential and Executive Office Accountability    Act in 1996 (Public Law 104-331), the Congress extended the Board's jurisdiction    into completely new areas. This law authorizes appeals to the MSPB by approximately    1,700 employees in the Executive Office of the President based on violations    of a number of workplace laws, including the Family and Medical Leave Act    (FMLA), Fair Labor Standards Act, Employee Polygraph Protection Act, and  Worker Adjustment and Retraining Notification Act, as well as USERRA.
-     The last days of the 105th Congress saw the enactment of two new laws with    the potential for greatly increasing the Board's caseload. Under the Veterans    Employment Opportunities Act of 1998 (Public Law 105-339), a preference    eligible may file an appeal with MSPB based on a violation of any law or    regulation relating to veterans' preference, after first filing a complaint    with the Department of Labor and allowing DOL 60 days to try to resolve    the matter. In addition, a violation of veterans' preference is now specifically    articulated as a prohibited personnel practice, allowing the Special Counsel    to petition the Board to order disciplinary action against an employee    who commits such a violation. The Veterans Programs Enhancement Act of    1998 (Public Law 105-368) included a number of amendments to USERRA, including    one extending the Board's jurisdiction to cover claims of violations that  occurred before the October 13, 1994, enactment date of USERRA.

Developing Case Law

In its first USERRA decision, *Petersen v. Interior* (1996), the Board ruled that USERRA claims come under its appellate jurisdiction,  claims of discrimination because of military service come under USERRA's  remedial scheme, and the burden of proof set forth in USERRA provides that  a violation will be found if military service was a "motivating factor" in the employer's action, unless the employer can show that the action  would have been taken in the absence of such service. In *Jasper v. USPS* (1997), the Board ruled that, under USERRA, it has jurisdiction over an  appeal by "any person" alleging discrimination in Federal employment on  account of military service and that the Department of Labor procedure  must be exhausted if a formal complaint was filed with DOL.

Board decisions continued to address provisions ofthe whistleblower legislation. The Board set forth the rules for establishingits jurisdiction over individual right of action (IRA) appeals in *Geyerv. Justice* (1994), ruling that an appellant must show that he or shemade a protected disclosure; the agency took or failed to take, or threatenedto take or fail to take, a personnel action after July 9, 1989 (the effectivedate of the WPA); and the procedures of the Office of Special Counsel havebeen exhausted. In *Steele v. OPM* (1993), the Board ruled that interimrelief may be ordered in retirement appeals, and in *Costin v. DHHS*and OPM (1996), the Board ruled that interim relief may be ordered in IRAappeals.

In *Kimble v. Navy* (1996), the Board ruled thatas a result of the Americans with Disabilities Act, an agency is no longerrequired to provide a "firm choice" before it disciplines an alcoholicemployee. *Evono v. Justice* (1996) established that an appellanthas a fundamental right to an in-person hearing if there is a genuine disputeas to any material fact. In *Jackson v. OPM* (1996), the Board ruledthat the OPM Director is not precluded from seeking judicial review ofa Board decision where OPM is a party to the appeal. In *Crosby v. U.S.Postal Service* the Board held that even if an appellate court saidthat an administrative agency could not award damages for discrimination,the Board would defer to the EEOC's ruling that an administrative agencycould award such damages.

In *Moscato v. Department of Education*, the Boardsuspended application of one of its regulations, saying that it would nolonger dismiss an agency's petition for review as moot when the agencyinadvertently cancels the action under appeal in order to comply with aninterim relief order. *White v. USPS* (1996) set forth a new ruleconcerning the scope of the Board's review of agency penalty determinations--whereonly some of an agency's charges are sustained, the Board will independentlyselect what it considers to be "a reasonable penalty." And in *Haslerv. Air Force* (1998)(an interlocutory appeal), the Board ruled thatit may authorize as a method of discovery the use of a physical or mentalexamination under Rule 35 of the Federal Rules of Civil Procedure.
The Board has changed the focus of review of its judges'initial decisions from technical and procedural matters to merits issues.For example, fewer cases are being dismissed on timeliness grounds, thusallowing the Board to reach the merits issues in these cases. At the sametime, cases are becoming more complicated. For example, appellants arenot only alleging a wrongful removal or suspension but also adding claimsof disability, race, sex and/or age discrimination, FMLA issues, claimsof reprisal for whistleblowing, USERRA rights, etc. All of these issuesmust be addressed, lengthening hearings and making decisions harder, longer,and more complex. The Board also continues to refine its adjudicatory process.The time limit for filing an appeal, previously 20 days after the effectivedate of an agency action, was extended to 30 days. The time limit for filinga request for attorney's fees was extended from 30 days to 60 days afterthe date of a final Board decision.

Oversight in the Restructured Government
In light of the increasing decentralization ofpersonnel authorities, recent Board studies are deliberately focusing onissues that are particularly relevant to Federal employees and managersand on providing practical recommendations. This back to basics approachis intended to enhance the ability of the executive branch to recruit,select, motivate, and manage a highly qualified workforce.-  *Federal Supervisors and Strategic Human Resources Management* (1998)pointed out the problem that, although most Federal supervisors do a commendablejob of performing their technical duties, they have difficulty with humanresources management tasks, tending to respond to immediate needs ratherthan making long-range strategic decisions. 
-  *Civil Service Evaluation: The Evolving Role of the U.S. Office of Personnel  Management* (1998) reviewed OPM's program for oversight of the merit-based  civil service system, raising questions about how well OPM is helping agencies  shift the focus of personnel management accountability from human resources  offices to line managers. 
-  *The Changing Federal Workplace: Employee Perspectives* (1998) provided    policymakers with a glimpse of how Federal workers viewed efforts to reinvent    the way the Government conducts business. The report highlighted the successes  and failures of these efforts as seen from the front line. 
-  *Adherence to the Merit Principles in the Workplace: Federal Employees'      Views*(1997) examined the degree to which executive branch organizations      are adhering to the requirements of the statutory merit principles. The      study found that while most employees believe their agencies are upholding      the merit principles, substantial numbers see their agencies as failing  in this responsibility. 
-  *Removing Poor Performers in the Federal Service* (1995) concluded        that few managers use the performance-based removal procedures established        by the CSRA. It further found that many supervisors do not understand either        of the two major processes established for removing poor performers--Chapter  43 and Chapter 75 of Title 5. 
-  *The Rule of Three in Federal Hiring: Boon or Bane*(1995) created          some controversy with its finding that the longstanding "rule of three" (which requires a manager to hire from among the top three candidates referred          for a position) was not advancing the principle of merit-based hiring it  was intended to protect. 
-  *Leadership for Change: Human Resource Development in the Federal Government*(1995)            discussed the fact that training in the Government is seldom linked to            strategic planning. The report suggested ways to restructure the training  function so that agencies are better prepared to meet their mission objectives. 
-  *Temporary Federal Employment: In Search of Flexibility and Fairness*    (1994) led to changes in OPM policy on the hiring of temporary Federal  employees. 
-  *Whistleblowing in the Federal Government: An Update* (1993) and Sexual                Harassment in the Federal Workplace: Trends, Progress, Continuing Challenges  (1995) took a new look at these perennially important issues. 
-  *Entering Professional Positions in the Federal Government*(1994)                      discussed how the various methods of entering Government service contribute  to the quality and representativeness of the workforce.
**To accelerate data-gathering efforts, provide reportsmore quickly, and save money, the Board has established standing panelsof representatives from the management, labor, and personnel communities.The panels are set up to respond to short surveys on workforce and civilservice issues. The active, ongoing involvement of these volunteers shouldhelp MSPB focus on emerging personnel issues--issues of most importanceto those on the front line of the civil service as well as those makingstrategic human resources decisions.**
In recognition of the value of the Board's oversight  role and contributions, the MSPB's Office of Policy and Evaluation was  named the 1994 recipient of the Elmer B. Staats Award for Accountability  in Government. The award, given annually by the National Capital Area Chapter  of the American Society for Public Administration, was based on a determination  that the Board's studies enabled it to be a "forceful advocate of accountability  for effective human resources management consistent with the merit system  principles."

The Federal Civil Service and Merit in the 21st Century
**The Merit Systems Protection Board has contributedgreatly to institutionalizing the concept of merit as articulated twentyyears ago in the Civil Service Reform Act. The application of merit principlesas the basis for actions and decisions in the civil service has becomethe hallmark of Federal human resources management, and has been reinforcedby the Board's independent adjudication of cases and its discerning studiesof the merit systems.**
The Federal workplace today is a different world from what it was whenthe CSRA was enacted. It is smaller--the workforce has been cut by some300,000 jobs. It is more customer oriented--serving and communicating clearlywith the people we serve are priorities. Regulations have been eliminatedor streamlined. Organizations, too, are more streamlined and more focusedon basic missions. Accountability and performance are the watchwords. Allof this certainly holds true for the Board.
Despite these changes, however, the principles underlyingthe CSRA remain sound, viable, and unchanged. And there is no change inthe determination of the Board--and its sister agencies, the Office ofPersonnel Management, the Office of the Special Counsel, the Federal LaborRelations Authority, and the Equal Employment Opportunity Commission--topromote these values.
The last 20 years are a relatively small part of the116-year history of the merit-based civil service that has served thiscountry so well. It was during these last two decades, however, that theblueprint of the Civil Service Reform Act guided the Government and itsemployees and institutions in the crucial task of building a foundationfor merit suited to the 21st century. The Board now rededicates itselfto the goal of working with the rest of the Federal community to constructupon that foundation a Federal workplace that is an exemplar of fairness,integrity, efficiency, and effectiveness.
Clearly, a standard by which to gauge how well the Governmentdoes in this regard over the next 20 years will be the degree to whichit is able to recruit, select, develop, and effectively manage a highlyqualified, motivated, and productive workforce. MSPB will continue to doits part to ensure that the Federal merit systems assist Government agenciesin fulfilling their many missions on behalf of the nation and that Federalemployees are held accountable for achieving results. The challenges ofthe next century are sure to be formidable, but a Federal workforce operatingupon a foundation of merit will meet those challenges.
Members of the U.S. Merit   Systems Protection Board 1979-1999     Ruth T. ProkopChairman1979-1981Herbert E. EllingwoodChairman  1981-1986Daniel R. LevinsonChairman1986-1993Ben L. ErdreichChairman1993-Present 
Ersa H. Poston    (Acting Chairman, 1981)
Vice Chairman1979-1983Maria L. Johnson  (Acting Chairman, 1986)Vice Chairman1983-1986Antonio C. AmadorVice Chairman 1990-1993Jessica L. ParksVice Chairman1993-1995Beth S. SlavetVice Chairman1995-Present Ronald P. WertheimMember1979-1981Dennis M. DevaneyMember1982-1988Samuel W. BogleyMember1988-1989Jessica L. ParksMember1990-1993Antonio C. AmadorMember1993-1997Susanne T. MarshallMember1997-Present
Index of Cases Cited
Allen v. U.S. Postal Service, 2 M.S.P.R 420 (1980)Brown v. U.S. Postal Service,58 M.S.P.R 345 (1993) Callaway v. Department of the Army,23 M.S.P.R 592 (1984)Costin v. Department of Health & Human Services,72 M.S.P.R. 525 (1996), *modified*, 75 M.S.P.R. 242 (1997)Crosby v. U.S. Postal Service, 78 M.S.P.R. 263 (1998)Di Pietro v. U.S. Postal Service, 58 M.S.P.R 430 (1993)Douglas v. Veterans Administration, 5 M.S.P.R 280 (1981)Evono v. Department of Justice, 69 M.S.P.R 541 (1996) Gergick v. General Services Administration, 43 M.S.P.R 651 (1990)Geyer v. Department of Justice,63 M.S.P.R 13 (1994)Godfrey v. Department of the Air Force,45 M.S.P.R 298 (1990)Griffin v. Department of Agriculture,2 M.S.P.R 168 (1980)Griffin v. Department of the Army,23 M.S.P.R. 657 (1984)Hasler v. Department of the Air Force,79 M.S.P.R 415 (1998) Ignacio v. U.S. Postal Service,30 M.S.P.R 471 (1986) (decision of Special Panel)   Jackson v. Office of Personnel Management, 71 M.S.P.R 405 (1996) Jasper v. U.S. Postal Service,73 M.S.P.R 367 (1997)Kimble v. Department of the Navy,70 M.S.P.R 617 (1996)Losure v. Interstate Commerce Commission,2 M.S.P.R 195 (1980)Lozada v. Equal Employment Opportunity Commission,45 M.S.P.R 310 (1990)Lundberg v. Department of the Navy,43 M.S.P.R 382 (1990)Marcoux v. U.S. Postal Service,63 M.S.P.R 373 (1994)Marshall v. Department of Veterans Affairs,44 M.S.P.R 28 (1990) Moscato v. Department of Education,72 M.S.P.R 266 (1996)  Mulherin v. Department of the Air Force, 45 M.S.P.R 289 (1990) Parker v. Defense Logistics Agency,1 M.S.P.R 505 (1980)Petersen v. Department of the Interior,71 M.S.P.R 227 (1996)Robinson v. U.S. Postal Service,63 M.S.P.R 307 (1994)Sandland v. General Services Administration,23 M.S.P.R 583 (1984)Shuman v. Department of the Treasury,23 M.S.P.R 620 (1984)Sink v. U.S. Postal Service,65 M.S.P.R 628 (1994)   Spithaler v. Office of Personnel Management,1 M.S.P.R 587 (1980) Steele v. Office of Personnel Management,57 M.S.P.R 458 (1993),*aff'd*, 50 F.3d 21 (Fed. Cir. 1995) (unpublished table decision)Unhoch v. U.S. Postal Service,66 M.S.P.R 651 (1995)Weaver v. Department of the Navy,2 M.S.P.R 129 (1980)White v. Department of the Air Force,78 M.S.P.R. 38 (1998), *appeal docketed sub nom*. Lachance v. White, No. 98-3249 (Fed. Cir. June 8, 1998)White v. U.S. Postal Service,63 M.S.P.R. 299 (1994) White v. U.S. Postal Service,71 M.S.P.R 521 (1996) |
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