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INVESTING IN AN EFFECTIVE 

FEDERAL WORKFORCE 

HEARING 

BEFORE THE

OVERSIGHT OF GOVERNMENT MANAGEMENT, 

THE FEDERAL WORKFORCE, AND THE 

DISTRICT OF COLUMBIA SUBCOMMITTEE 

OF THE

COMMITTEE ON 

HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

ONE HUNDRED TWELFTH CONGRESS 

SECOND SESSION 

SEPTEMBER 19, 2012 

Available via the World Wide Web: http://www.fdsys.gov 

Printed for the use of the Committee on Homeland Security 

and Governmental Affairs 

( 
(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

JOSEPH I. LIEBERMAN, Connecticut, Chairman 

CARL LEVIN, Michigan 

DANIEL K. AKAKA, Hawaii 

THOMAS R. CARPER, Delaware 

MARK L. PRYOR, Arkansas 

MARY L. LANDRIEU, Louisiana 

CLAIRE MCCASKILL, Missouri 

JON TESTER, Montana 

MARK BEGICH, Alaska 

SUSAN M. COLLINS, Maine 

TOM COBURN, Oklahoma 

SCOTT P. BROWN, Massachusetts 

JOHN MCCAIN, Arizona 

RON JOHNSON, Wisconsin 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JERRY MORAN, Kansas 

MICHAEL L. ALEXANDER, Staff Director 

NICHOLAS A. ROSSI, Minority Staff Director 

TRINA DRIESSNACK TYRER, Chief Clerk 

JOYCE WARD, Publications Clerk and GPO Detailee 

OVERSIGHT OF GOVERNMENT MANAGEMENT, THE FEDERAL 

WORKFORCE, AND THE DISTRICT OF COLUMBIA SUBCOMMITTEE 

DANIEL K. AKAKA, Hawaii, Chairman 

CARL LEVIN, Michigan 

MARY L. LANDRIEU, Louisiana 

MARK BEGICH, Alaska 

RON JOHNSON, Wisconsin 

TOM COBURN, Oklahoma 

JERRY MORAN, Kansas 

CHRISTINE K. WEST, Deputy Staff Director 

BRYAN G. POLISUK, Counsel 

KARA C. SYBENGA, Counsel 

RACHEL R. WEAVER, Minority Staff Director 

LISA NEUDER, Counsel 

LAUREN CORCORAN, Chief Clerk 
(III) 

C O N T E N T S 

Opening statement: Page 

Senator Akaka .................................................................................................. 1 

Senator Johnson ............................................................................................... 3 

Prepared statement: 

Senator Akaka .................................................................................................. 33 

Senator Johnson ............................................................................................... 35 

WITNESSES 

WEDNESDAY, SEPTEMBER 19, 2012 

Hon. John Berry, Director, Office of Personnel Management .............................. 5 

Hon. Gene L. Dodaro, Comptroller General of the United States, U.S. Government Accountability Office .................................................................................. 7 

Colleen M. Kelley, President, National Treasury Employees Union ................... 19 

J. David Cox Sr., President, American Federation of Government Employees, 

AFL–CIO ............................................................................................................... 21 

Max Stier, President and CEO, Partnership for Public Service .......................... 23 

William L. Bransford, General Council, Senior Executives Association, Representative of the Government Managers Coalition ......................................... 25 

ALPHABETICAL LIST OF WITNESSES

Berry, Hon. John: 

Testimony .......................................................................................................... 5 

Prepared statement .......................................................................................... 37 

Bransford, William L.: 

Testimony .......................................................................................................... 25 

Prepared statement .......................................................................................... 98 

Cox, J. David Sr.: 

Testimony .......................................................................................................... 21 

Prepared statement .......................................................................................... 75 

Dodaro, Hon. Gene L.: 

Testimony .......................................................................................................... 7 

Prepared statement .......................................................................................... 44 

Kelley, Colleen M.: 

Testimony .......................................................................................................... 19 

Prepared statement .......................................................................................... 67 

Stier, Max: 

Testimony .......................................................................................................... 23 

Prepared statement .......................................................................................... 88 

APPENDIX 

Questions and responses for the Record from Mr. Berry ..................................... 106 

Statement from the International Federation of Professional and Technical 

Engineers (IFPTE) ............................................................................................... 116 

(1) 

INVESTING IN AN EFFECTIVE 

FEDERAL WORKFORCE 

WEDNESDAY, SEPTEMBER 19, 2012 

U.S. SENATE, SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT

MANAGEMENT, THE FEDERAL WORKFORCE, AND THE DISTRICT OF COLUMBIA, OF THE COMMITTEE ON HOMELAND SECURITY

AND GOVERNMENTAL AFFAIRS, Washington, DC. 

The Subcommittee met, pursuant to notice, at 2:37 p.m., in Room 

342, Dirksen Senate Office Building, Hon. Daniel K. Akaka, Chairman of the Subcommittee, presiding. 

Present: Senators Akaka and Johnson. 

OPENING STATEMENT OF SENATOR AKAKA 

Senator AKAKA. This hearing of the Subcommittee on Oversight 

of Government Management, the Federal Workforce, and the District of Columbia will come to order. 

Aloha and thank you all for being here today as the Subcommittee examines a number of issues that are vitally important 

to our Federal workforce. We will discuss the progress that has 

been made in many agencies and the steps we must take to make 

sure the Federal Government is effective and efficient now and for 

future generations. 

The Federal Government is facing some of the most complex 

challenges in our Nation’s history and dealing with serious budget 

constraints. To do more with less, it is critical that we have a first 

class Federal workforce. The government must make the proper investments in its employees and take the steps necessary to recruit, 

retain, and develop its talent. 

The media often focuses on what goes wrong in government, but 

today I want to take a moment to recognize the important work of 

two million civil servants who provide essential services to the 

American people. The tragic deaths of Ambassador Stevens and 

three other civil servants remind us of the sacrifices public servants make on our behalf, unfortunately and occasionally the ultimate sacrifice, and we certainly think of them and their families 

and their honor to the country with their lives. 

Over the years, I have met and worked with so many inspiring 

men and women who work hard every day to serve this great country. Our country is stronger, and that is thanks to their service. It 

has truly been my privilege to support them and move our government forward. 
2 

I am pleased that we have made progress in a number of areas 

that have been priorities for me and for this Subcommittee, including enacting and implementing the Non-Foreign Area Retirement 

Equity Assurance Act and the Telework Enhancement Act, as well 

as making important strides in reforming the Federal hiring and 

security clearance processes. We are also doing a better job matching Federal employment opportunities to the important skills of 

veterans and people with disabilities and in making sure all employees get the training they need to help agencies meet critical 

missions. But, as you know, there is more work to be done. 

As many of you know, I will be retiring at the end of this year 

and this will be my last hearing as Chairman of this Subcommittee. It has been a great honor for me to serve as Chairman 

of this Subcommittee and work on issues that, although they may 

not always make headlines, are crucial to improving the lives of 

our citizens. 

Throughout my career in Congress, I have used the spirit of 

aloha to get things done. In Hawaii, the Aloha Spirit is a feeling 

that we need to bring people together and solve problems. I may 

not always have the same priorities or perspectives as my Republican counterparts, but I always try to look for common ground, 

and we have. Recently, I have been working closely with Representative Issa to pass the Whistleblower Protection Enhancement 

Act (WPEA), which has been a priority for me for years, before 

Congress adjourns. 

Over the years, I have often said that I believe that the Federal 

Government, as the Nation’s largest employer, has a responsibility 

to lead by example, to be a model employer. It is my hope that the 

work of this Subcommittee has moved us toward that goal. 

I love serving in Congress and I have been so privileged to work 

closely with the witnesses here today to address the needs of our 

country and the Federal workforce, and I am so glad to be working 

today with my partner here, a Senator who has worked hard with 

me since he has been elected. Ron has been such a good partner 

in what we are trying to do here for the people of our country. 

Today, we have two panels of star witnesses, including some of 

the most dedicated, effective leaders in Federal workforce issues. I 

know each of you cares deeply about our Nation and these issues 

and I want to thank you for being here today and for the work you 

do every day to improve our government and our workforce. So I 

look forward to your testimony. 

I want to say thank you very much for these leis for all of you. 

I just want to be sure you know that a lei like this is very significant to a person from Hawaii. This is not any lei. It is a special 

lei because of its makeup. This is called maile, the leaves, taken 

from vines, and the flowers are kukuna o ka la, which is ‘‘the rays 

of the sun’’ in Hawaiian. So, together, this makes it an important 

lei. Normally, they give a lei like this to the officials, and I must 

say that this is an honor to receive one like this and I thank John 

Berry for this lei and for his good wishes well and honor that they 

give me here. 

And so I would like to at this time thank our star witnesses so 

much for all the help you have given me while I am here. This has 

made a huge difference. 
3 

And now, I would like to call on Senator Johnson, my partner, 

for any statement he may have. 

OPENING STATEMENT OF SENATOR JOHNSON 

Senator JOHNSON. Well, thank you, Mr. Chairman, and aloha. 

Senator AKAKA. Aloha. 

Senator JOHNSON. As you mentioned, today is a very memorable 

day for you because this is your last Subcommittee hearing in 

terms of when you will be Chairman, and for me, also, because it 

will be the last time I will have the privilege of serving with you 

on this Subcommittee before you retire. 

In the Aloha Spirit that you have brought to not only the Senate 

but your service here in Congress for many years, I would like to 

start this hearing by decorating you further with my own lei, out 

of affection, appreciation, and deep respect for your service to the 

country. 

Senator AKAKA. Thank you so much. [Applause.] 

Senator JOHNSON. That color combination goes well together. 

[Laughter.] 

Senator AKAKA. Yes. 

Senator JOHNSON. But I just want to say that when I started in 

the U.S. Senate less than 2 years ago, Senator Akaka gave me a 

warm and friendly welcome to the Homeland Security and Governmental Affairs Committee (HSGAC). His cheerful smile, encouraging attitude, and genuine desire to make a difference has been 

a hallmark of his many years of service to this country. The affection we all have for Senator Akaka is heartfelt and is well deserved. 

During my time here, I have always enjoyed joining Senator 

Akaka at the Senate’s Wednesday morning prayer breakfasts. 

Many of you do not know this, but Chairman Akaka started the 

tradition of singing a hymn at the beginning of every prayer breakfast. Everyone in attendance looks forward to hearing Senator 

Akaka’s explanation of the hymn’s history and hearing his fine 

voice lead us in singing. Your presence at the weekly prayer breakfast will be sorely missed. 

Senator Akaka has demonstrated his commitment to public service throughout his life. His entry into public service began during 

World War II, where he served in active duty in the U.S. Army. 

From there, Senator Akaka continued his service in the State of 

Hawaii’s Department of Education before first being elected to the 

U.S. House of Representatives in 1976. Today, 36 years later, it is 

clear to see the countless contributions that Senator Akaka has 

made during his many years of service. 

As one of the longest-serving Senators currently in the Senate, 

Senator Akaka has forged many friendships, including with a number of U.S. Presidents. He served with every President since Jimmy 

Carter and has maintained friendships with many of them. Senator 

Akaka has strong ties across the aisle, from his common bond with 

President George H.W. Bush as a World War II veteran, to playing 

many rounds of golf with President Clinton, and apparently those 

things went on quite a while. 

As Chairman of the Subcommittee on Oversight of Government 

Management (OGM), the Federal Workforce, and the District of Co-
4 

lumbia, it has been his goal to attract, retain, and motivate a 

skilled Federal workforce. I applaud the work Senator Akaka has 

done to ensure that Federal employees are protected from retaliation when they disclose government waste, fraud, and abuse. 

Senator Akaka has also worked hard to ensure that the Federal 

Government process retirement claims in a timely and efficient 

manner. He has advocated for the modernization of information 

technology (IT) infrastructure to achieve this goal. These are common sense advancements that are good for the Federal workforce 

and good for the American taxpayer. 

It is Senator Akaka’s ‘‘Aloha Spirit’’ that has earned him the recognition of many organizations. Time will not allow me to name 

every award he has received, but I would like to mention just a 

few. 

In 1999, he received the Adam Smith Medal of Distinction from 

the National Council on Economic Education for his work in improving our youth’s education and economic principles. 

In 2008, he received the Inspirational Leadership Award from 

the Military Order of the Purple Heart for his dedication to our Nation’s veterans. 

And in 2011, he received the Public Service Award from the Government Accountability Project for his work in protecting the rights 

of whistleblowers. 

Senator Akaka, all too often, the public spotlight is on the differences between Members of Congress, but your record in Congress points to a different reality. Your tireless efforts to streamline Federal processes and making agencies more accountable have 

found broad bipartisan support. In other words, the Aloha Spirit 

has worked. 

Senator Akaka, I know you will be missed by all of your colleagues here in Congress, every staff member, and everyone who 

has had the pleasure of working with you here in Washington and 

throughout America during your dedicated years of service. In particular, I will miss you. During our short time of service together, 

you have been most kind and gracious to me and I will always consider you my friend. 

I know you are looking forward to spending more time with your 

family, including your 15 grandchildren and 15 great-grandchildren. I cannot think of a more fitting, satisfying, and well deserved retirement. So I would like to extend my appreciation and 

congratulations to you and your family and wish you all the best 

in the years ahead. Aloha. 

And I guess just in terms of mentioning family, I would like to 

point out that my wife, Jane, my sister, Lynn, and my sisters-inlaw Kathy and Mary are here. They also are saying aloha to you, 

as well. 

So at this point, I would like to welcome our witnesses, and it 

is a star cast, I think two of our favorite witnesses, Director Berry 

and Gene Dodaro. I would like to thank you for being here. I look 

forward to hearing your testimony on how we can continue to implement and improve upon the many reforms that Chairman 

Akaka has worked so tirelessly on. So thank you. 

Senator AKAKA. Thank you very much. In Hawaii, we say 

mahalo, which is thanks. It is not enough, so we added the word 
5 

1The prepared statement of Mr. Berry appears in the appendix on page 37. 

‘‘nui,’’ and ‘‘nui’’ in Hawaiian means big and huge. So to say 

mahalo nui is a huge thanks. But we do not think that is enough, 

so we added another word, ‘‘loa,’’ which is long, like Mauna Loa, 

which is a long mountain. And so I want to say mahalo nui loa, 

Ron, for your friendship and your work here, as well. I certainly 

am so happy your family can be here, as well, and want to say 

aloha to you, as well. 

And thank you so much for the kind words. There is no question, 

I will miss all of this and the friendships and the work here, but 

I know you will carry it on and continue to help our country in the 

future. And so thank you so much, Ron— 

Senator JOHNSON. Thank you. 

Senator AKAKA [continuing]. You and your staff. 

So at this time, I welcome John Berry, Director of the Office of 

Personnel Management (OPM), and Mr. Gene Dodaro, Comptroller 

General of the United States and head of the Government Accountability Office (GAO). These gentlemen have been terrific in continuing to help our country and especially the people who work in 

it. So it is always good to see both of you. I want to share my aloha 

with you and wish you well in your work in the future, as well. 

Thank you so much for being with us here today. 

As you know, it is the custom of this Subcommittee to swear in 

all witnesses, so I ask you to please stand and raise your right 

hands. 

Do you swear that the testimony you are about to give this Subcommittee is the truth, the whole truth, and nothing but the truth, 

so help you, God? 

Mr. BERRY. I do. 

Mr. DODARO. I do. 

Senator AKAKA. Thank you very much. Let the record show that 

our witnesses answered in the affirmative. 

Before we start, I want you to know that your full written statements will be part of the record, and I would like to remind you 

to please limit your oral remarks, as you normally do anyway. 

Director Berry, will you please proceed with your testimony. 

TESTIMONY OF HON. JOHN BERRY,1 DIRECTOR, U.S. OFFICE 

OF PERSONNEL MANAGEMENT 

Mr. BERRY. Aloha, Chairman Akaka— 

Senator AKAKA. Aloha. 

Mr. BERRY [continuing]. And mahalo for inviting me and Gene to 

discuss with you the state of our Federal workforce today. I am 

particularly honored to be invited to testify today. As you have 

mentioned, this will be your last hearing. 

Mr. Chairman, I have been very fortunate to have worked with 

you since 1985, when I was a very junior staffer for Congressman 

Steny Hoyer and the two of you served on the House Appropriations Committee. During that time, I witnessed firsthand your commitment to our Federal workers and ensuring that the Federal 

Government was an employer of choice. As long as I have known 

you, you have been a champion of good management practices and 

employee rights. You have encouraged labor-management partner-
6 

ships. You have improved whistleblower protections. You have ensured fair pay and benefits, promoted domestic partner benefits. 

You have increased telework in our government, pushed for hiring 

reform, enhanced the diversity of our workforce, expanded our financial literacy, and strengthened employee training and mentoring programs. 

For example, I know how hard you have worked to ensure that 

Federal workers outside of the DC area are provided with the same 

benefits and protections as those closest to this building. Your work 

with Federal executive boards across the United States has ensured that we all remain mindful that the bulk of government 

work, approximately 88 percent of it, is carried on outside of the 

beltway. And Federal employees live and work in every county of 

the United States. 

I know you are particularly proud of your work on the Non-Foreign Area Retirement Equity Assurance Act, which simply provides 

equity in retirement benefits for Federal workers in Hawaii, Alaska, and our United States Territories. 

I was also deeply honored to work with you, Mr. Chairman, on 

an issue that I know is extremely close to your heart, the reconciliation process between the Federal Government and our Native Hawaiians. Following the passage of your Native Hawaiian Apology 

Resolution, President Clinton asked me to represent our government in a series of formal hearings throughout the State of Hawaii, 

where more than 40 hours of public testimony were heard on every 

island. In October 2000, the Department of Justice (DOJ) and the 

Department of Interior (DOI) released our report entitled, ‘‘From 

Mauka to Makai: The River of Justice Must Flow Freely,’’ which 

summarized our meetings and detailed the history of Native Hawaiians and the need for further reconciliation through the establishment of a government-to-government relationship. I know that 

this report aided in the development of your bill to establish that 

relationship, and I am extremely honored to have been a partner 

with you in this effort. 

I have also enjoyed working with you on another issue that I 

know is dear to your heart, and that is ensuring that our veterans 

get the benefits that they have earned and deserve. As one of only 

three remaining World War II veterans in the Senate, and as the 

former Chairman of the Senate Veterans Affairs Committee, you 

have made the care and services provided to our veterans one of 

your top priorities. I am very proud that OPM has been able to do 

its part by improving employment opportunities for our veterans 

and providing assistance to veterans and their families who are 

seeking information about Federal employment. 

I do not know if you remember, Mr. Chairman, but at my confirmation hearing for this job, I promised you and the Members of 

this Subcommittee that we would do a better job in hiring veterans 

in our civilian agencies. In 2009, veterans comprised 24 percent of 

our total new hires in the government. In 2011, they comprised 

28.3 percent. That is the highest percentage since we have been 

keeping records on veterans’ employment. 

Mr. Chairman, in your speeches, and as Senator Johnson has 

noted, you often begin by greeting crowds, as you did here today, 

with the word ‘‘aloha,’’ which the audience may not know means 
7 

1The prepared statement of Mr. Dodaro appears in the appendix on page 44. 

love. Your love for others has been as constant as the North Star, 

and it has made you one of the most beloved members of our U.S. 

Senate. In an age where partisanship is the norm, you stand out 

by sharing your aloha with everyone and serving as an example to 

all of us of what we can be if we work with aloha in our hearts. 

The motto for the State of Hawaii is ‘‘Ua Mau ke Ea o ka Aina 

I ka Pono, ‘‘may the life of our land be perpetuated in righteousness.’’ Mr. Chairman, you are a great leader. Your righteousness 

has improved not only the State of Hawaii, but the United States 

of America. The people of Hawaii, all of our Federal workforce, and 

I personally want to say a very big thank you from the bottom of 

my heart for everything that you have done for this Nation. We 

wish you so much aloha as you begin this next chapter of your life. 

You will be sorely missed. God bless you, sir. 

Senator AKAKA. Thank you so much. Mahalo nui loa for your 

statement. It is a great honor for me to receive that from you. I 

thank God for you and all those that work with you, your staff, as 

well. You make a huge difference. Thank you. 

Mr. Dodaro, will you please proceed with your statement. 

TESTIMONY OF HON. GENE L. DODARO,1 COMPTROLLER 

GENERAL, U.S. GOVERNMENT ACCOUNTABILITY OFFICE 

Mr. DODARO. Thank you very much, Mr. Chairman. Good afternoon to you and Senator Johnson. 

Before I turn to the subject of today’s hearing, though, I would 

like to reiterate the comments I made before this Subcommittee in 

June when I was here to testify on the personnel security clearance 

area, and that is to express my and all my GAO colleagues’ deep 

appreciation for your exceptional record of public service. It has 

been a distinct privilege to work with you on a wide range of 

issues, including veterans’ issues, radiological source issues—we 

completed an important report for you recently about that—and all 

the human capital issues that are the subject of today’s hearings. 

We thank you for your dedicated service to improving government 

and we want to wish you, on behalf of all my colleagues at GAO, 

the best of health and happiness in your retirement to you and 

your family. 

Senator AKAKA. Thank you. 

Mr. DODARO. Now, turning to today’s hearing, in the area of 

human capital management, we took the extraordinary step back 

in 2001 to designate strategic human capital management as a 

high-risk area across the entire Federal Government. The reason 

we did that was because of a lack of leadership and attention to 

those issues. Since then, along with this Subcommittee’s leadership 

and your personal attention, Congress has passed a number of significant pieces of legislation that have begun to focus on this very 

important area, establishing Chief Human Capital Officers 

(CHCOs) in each Federal Department and agency, creating a Council of them to work with the Office of Management and Budget 

(OMB) and OPM in order to make sure that these issues get attention, granting greater workforce flexibilities in 2004, and most recently the telework legislation that passed in 2010. And all these 
8 

pieces of legislation have provided more important tools and attention to help agencies deal with a wide range of human capital 

issues. 

Recently OPM also initiated a number of initiatives in the hiring 

area, the training area, workforce-life-family balance issues, and 

training programs. We have done a series of reviews at this Subcommittee’s request and pointed out those areas where they have 

made good progress and are on track and made some recommendations to help make further improvements. 

Now, while great progress has been made, much more remains 

to be done and there is a lot of need for continued attention. Among 

the reasons that we have kept the human capital area on the HighRisk List, although we have narrowed the scope of it, is to focus 

on critical skills shortages. For example, we have pointed out such 

areas as cybersecurity, and this is particularly true with computer 

forensics and network analysis capabilities, the acquisition workforce, and foreign language capabilities. In all these areas there are 

existing skill gaps that need to be filled. It is very critical that this 

be done. And I am pleased that OPM has led a working group with 

the Chief Human Capital Officers to begin to address this issue 

governmentwide and with the individual departments and agencies. 

But in addition to that, right now, of the workers who were on 

the Federal payroll at the end of September 2011, 30 percent of 

them will be eligible to retire between now and 2016. And in some 

agencies, such as the Department of Housing and Urban Development (HUD) and the Small Business Administration (SBA), it is 40 

percent. And also, among the Senior Executive Service (SES), or 

the career leadership, 58 percent of those individuals will be eligible to retire between now and 2016. So this is a huge challenge 

with already existing skill gaps. This also all occurs against the 

backdrop of enormous fiscal pressures for the Federal Government 

to get its fiscal path on a more sustainable basis, and that will require a lot of adjustments, as well. 

So attention to the strategic human capital management practices is more important than ever. I believe we are entering a crucial period now when all these issues are going to have to be dealt 

with concurrently because they are providing a confluence of significant challenges to the Federal Government. And it will be really 

important for the Executive Branch to provide good leadership in 

this area, and it will be important for Congress to carry on the legacy of this Subcommittee, which is to have continued attention and 

oversight to all these matters. 

GAO will be there to do its part and to support everyone in carrying out this important responsibility and make sure our government works effectively and efficiently for the benefit of the American people. 

So thank you very much. I appreciate the opportunity to be here 

today and look forward to your questions. 

Senator AKAKA. Thank you very much, Comptroller General 

Dodaro, for your testimony, and your kind words, as well. 

Mr. Dodaro, as you mentioned in your testimony, in 2001, GAO 

identified strategic human capital management as a high-risk area 

at that time. In 2011, you narrowed the focus to the need to iden-
9 

tify and address critical skills gaps within the Federal workforce. 

This Subcommittee has focused on several of the most pressing 

gaps, including in foreign language skills and staffing of acquisition 

professionals and veterinarians. What strategies or steps would you 

recommend to OPM, the Chief Human Capital Officers Council, 

agencies, and Congress to address this high-risk issue going forward? 

Mr. DODARO. Yes. I think that is a very important question. 

What we focused on in a number of discussions that we have had, 

both with OPM and OMB and the agencies on all the areas in the 

high-risk area to make greater progress, is the need to do effective 

planning in this area. There is a real need to understand the root 

causes of the skill gaps—why they occurred, the size of the skill 

gap, is it pervasive across the government, targeted to individual 

agencies or a subset of agencies, and to develop common, efficient, 

effective solutions to addressing the skill gap. 

Second, there need to be effective strategies for recruitment and 

retention on key skills in this area, including the assistance that 

OPM could provide to the agencies on effective use of the hiring 

flexibilities that are in place, especially special pay rates and other 

things that are in the law so they are effectively and properly used, 

given the legal parameters of those flexibilities that are in the law. 

And third, there needs to be follow up to make sure that they 

have really solved the problem, are operating effectively, and this 

needs to be a continuous process because additional skill gaps will 

occur as the challenges change over time. And so there needs to be 

a robust process in place of continual planning, effective development of strategies, targeted recruiting and retention, and then 

evaluation to make sure that the issues have been properly addressed. 

Senator AKAKA. Director Berry, I would like to hear from you on 

this issue, as well. Would you please discuss the specific actions 

that OPM is taking to assist agencies in addressing mission critical 

skill gaps, as well as how OPM will measure progress in filling 

these gaps. 

Mr. BERRY. Mr. Chairman, first of all, I want to turn to something that you and Senator Voinovich created, and that is our Chief 

Human Capital Officers Council, which is made up of our HR professionals across the government. And this is a case where that 

Council has really stepped up and stepped forward, and I want to 

thank Gene, and Gene, your whole team sitting here in the front 

row, who have worked so closely with us to help us try to get this 

right. 

And another friend who is not here today is Pat Tamburrino, 

who, over at the Department of Defense (DOD), led the working 

group on the Chief Human Capital Officers Council on this issue. 

And what they did first was to identify critical areas where we 

were having these skill gaps, is the first step. Just so you and Senator Johnson are familiar, what they ended up doing was identifying five occupations and three competencies that are strategic in 

terms of the overall Federal Government. They impact literally 

every Federal agency. They are IT or cybersecurity, as Gene mentioned; HR, human resources; acquisition, something every Federal 

agency is involved with, some to a much larger scale than others; 
10 

program auditors, making sure that we can track and account for 

these resources for our taxpayers; and economists. 

All of these areas are areas that we regularly have a hard time 

recruiting. And they are areas that, when we look at the identification of where are those biggest retirement bubbles coming, some of 

those are in these areas that we just must address because they 

are governmentwide in nature. 

In addition to those core areas, there was agreement from the 

working group that we would also include science, technology, engineering, and mathematics (STEM) fields or functional areas. They 

span a number of occupations, but all taken together are critical 

to our strategic operation of our government. 

The three governmentwide competencies that we believe share 

across the Federal family are strategic thinking, problem solving, 

and data analysis. These are the tools that we are working with 

to make sure that as we recruit the next workforce, that they are 

rich in these talents and skills. 

Now, we are looking at this from sort of a cradle to grave perspective. We cannot just expect that these skills are going to come 

to us. So we are going out and working with the universities and 

working through the associations at the universities to see if we 

can work with them to help make sure that the graduates they are 

putting out have these three key elements to it. They are—I believe, Senator Johnson, with your private sector experience, you 

would probably agree—these are competencies that are critical in 

the private sector, as well. And to the extent that our universities 

can help by making sure our graduates are rich in these skills, the 

more effective our future government will be. 

Now, those are the governmentwide approaches. At the same 

time, what we have done is each of the government agencies have 

drilled down for their own unique workforce and they are to identify what additional skill gap areas they might have in their department that might not be governmentwide in nature. 

A good example of that, for example, is veterinarians at the Department of Agriculture. They have a very difficult time hiring a 

sufficient number. So that would be one of their additional skill 

gap areas that they would identify on their list, in addition to the 

ones identified governmentwide. 

Now that we have developed these categories, each of the Federal 

agencies has to come up with a work plan of how they are going 

to address each of these categories, both in terms of recruitment 

and retention and ongoing training. And so because each of these 

fields, especially when you think of IT and cybersecurity, we need 

to have ongoing regularized training, because, Mr. Chairman, as 

you and Senator Johnson know, the bad guys are always changing 

their game. We need to change with them. We need to always be 

at the top of our game in that sense from the Federal Government’s 

perspective. And so ongoing training is going to be a critical element in this. 

We will be tracking each of these elements, Mr. Chairman, reporting them both to GAO and to the Subcommittee so that you 

will know sort of where exactly we stand, and those plans will 

come down with their metrics and their accountability, so we will 

be tracking those and reporting to you on a regular basis. 
11 

But I am extremely grateful. I think this is a classic case of bipartisanship in the Congress. This is a case where we do not see 

the Government Accountability Office as a ‘‘gotcha.’’ We see them 

as a partner in helping us get this right. And they have really 

worked with us. We appreciate it. Jeff Zients at OMB and I have 

worked with Gene and his team. We take this very seriously. It is 

one of the highest priorities and we are going to press it. And my 

hope is, a year from now, we may be coming off that list. But that 

is Gene’s determination. 

Senator AKAKA. Well, thank you very much for your responses. 

I am so glad to hear the bells ringing in your statement now and 

the importance of partnership and of your work together with other 

departments and agencies, as well. This has been great. 

Mr. Dodaro, as you know, I worked to increase training for supervisors and employees in the Federal Government. In a study released on Monday examining Federal employee training, GAO 

found that, often, Chief Human Capital Officers are not communicating with other agency leaders. As a result, the agencies are 

duplicating certain training investments. What can be done to improve communication among leaders so that we are providing needed training without wasting money on duplicative training? 

Mr. DODARO. Thank you for noting the report, Mr. Chairman. 

There are a number of recommendations that we made in that report, one of which is to make sure—and this is a role that both 

OPM can play as well as the Chief Human Capital Officers Council, and that is to share information across government as to what 

some of the common training requirements are and then to efficiently develop programs that could be shared and put online. OPM 

has a Web site, and there are other tools that could be used to do 

this. Online training courses are becoming much more common and 

much more efficient. 

And there is a need for common training requirements. For example, in the computer security area, by law, each year, every employee in the Federal Government is required to take training on 

computer security and to protect the information. There could easily be a common course developed that could meet the needs across 

the Federal Government and perhaps tailored to meet each individual agency. 

We also pointed out in that report within departments and agencies, while there is a focus on what training should be centralized 

and what training should be decentralized, there is not enough information overall in the department about what the total investment is in training in the department and agency. There also is a 

need to develop better data so that those investments can be 

prioritized properly and then evaluated carefully going forward. 

And so those are the recommendations that we have made. We 

will be following up on those recommendations with OPM and with 

the individual agencies. And I think this is really important, because we invest a lot of money. Why not make sure, just like everything else, that we are investing it properly and we are carrying 

out these activities that are essential in the most efficient manner. 

This is terribly important, given our fiscal condition right now. 

Senator AKAKA. Thank you very much for your response. 

Let me call on Senator Johnson now for his questions. 
12 

Senator JOHNSON. Thank you, Mr. Chairman. 

Mr. Berry, let us kind of go back to the recruitment on universities. Can you talk to me specifically about activities that you engage in with the universities and colleges in terms of specific recruitment? 

Mr. BERRY. Absolutely, sir. One of the biggest reforms that we 

have been able to accomplish, and again, under the leadership of 

this Subcommittee, was reforming how students could enter the 

Federal Government. It was a very confusing program. We had a 

lot of programs that had a lot of acronyms. We had the Student Career Experience Programs (SCEPs) and we had the Student Temporary Employment Programs (STEPs). We had some hours counted towards conversion and Federal service, some did not. It was a 

confusing panoply that, unfortunately, many of our students were 

just—when they were going online and seeing this, they would just 

walk away. 

Both this Subcommittee and the President said, we have just got 

to do better, and so we crafted a program called Pathways where 

we created three entry programs now for students. If you are in 

school, no matter what degree program you are in school with, you 

are an intern and you are welcome to work for the Federal Government while you are in school, either during your spring or Christmas break or your summer break. And your hours count towards 

conversion if you are doing a good job. So we have created that 

clean category. If you are in school, you are an intern and your 

hours count. We have taken away the acronyms. 

The second category we have made is called Recent Graduates, 

and what we were finding is—I mean, most—the principle behind 

Federal employment is that you want to allow the public to have 

open competition to be able to apply for positions, and what we 

were finding is that students, because the bulk of their resumes 

was academic work, did not have the work history to successfully 

compete through open competition. And so in hearings around the 

country and working with universities, the National Academy of 

Public Administration, the Society of Public Administration, and a 

number of the schools counseled us that we needed to have sort of 

an entry ability for students to get into the Federal family or they 

would not successfully be able to join and we were denying ourselves that talent pool. 

And so we created the Recent Graduates Program, which creates 

a 2-year window after any degree, and you have a 2-year opportunity where a Federal agency can hire you. You are competing 

with other students and you are competing with student veterans 

who have gone back to school, but you are not competing against 

the world at large based on work experience. And that then allows 

students to join the Federal family. And again, if your hours you 

accumulate after that 2-year period, if you have done a good job, 

you can be converted into the permanent civil service. 

The third is a junior management development program called 

the Presidential Management Fellowship Program. It has been 

around for a long time. It had fallen on hard times and, quite 

frankly, it had been sort of—in previous budget cuts, the quality 

of the program had suffered. We have restored that. We have put 

back a direct interview so the quality of the candidates is lifting 
13 

up. It is a great program and it allows graduate-level students to 

join the Federal family and have what we call a career ladder. You 

would come in at a 7, but if you do a good job, you can be promoted 

to a 9 and then ultimately to an 11, where you can then assume 

management responsibilities. And so it is a lead program. We have 

about 10,000 applicants across the country for it. We pick around 

anywhere between 600 and 1,000, depending on the year. And then 

that program is our third pathway. 

So those are the three pathways we have now created. The regulations are up and running. Agencies have 6 months to convert. I 

forgot to mention one thing, and that is the 2-year Recent Graduates Program, if you are a veteran and you have gone back to 

school and you are required to do a service commitment, your window can be up to 6 years. So we are trying to make sure we are 

being very careful to protect and preserve the veterans’ preference 

program within these programs, and we are going to be following 

that very carefully in the data to make sure there is no negative 

impact. 

But I think wherever I go now—I have visited, I think—well, I 

have lost count at this point, Senator, it has been so many schools 

where I am going out personally to State institutions, community 

colleges, whether I am speaking at a graduation or speaking with 

students and speaking with veterans. I always meet with the student veterans on campus. We always meet with the teachers and 

the guidance counselors, and then we meet with the students as a 

way to try to build the awareness and knowledge of these programs. 

But I think once the agencies get used to them, once the word 

gets out on the street, these are going to be very effective ways for 

us to take advantage of the talents coming out of this new generation. When you talk cybersecurity, do not look to my generation. 

We have to look to the next generation. They are where it is happening, and we need them. 

Senator JOHNSON. How many ports of entry are there to the Federal system? In other words, how many gatekeepers? If you are a 

student looking to start a career in the Federal Government, do 

you just go to OPM? Do different agencies have also ports for 

entry? How streamlined or how confusing is that process? 

Mr. BERRY. Part of this reform is that all agencies would agree 

to post these opportunities on USAJOBS so that students can go 

to a one-stop shop and find out what opportunities are available for 

either internships, Recent Graduates Programs, or what the opportunity for PMF is. 

Senator JOHNSON. That is the goal. What is happening right 

now? 

Mr. BERRY. That is happening now, and agencies—well, this program, we just issued the final regulations in July, and departments 

are now standing up their programs. And so I do not want to say 

that every agency has theirs set up yet. We have to certify that 

they have thought through veterans’ preference and these other 

programs, and I think we have certified at least 15 agencies out of 

the 24 major ones so far. So we are making good progress. My hope 

is that by the end of the calendar year, we will have everybody, 

and then everybody will be there centralized in USAJOBS and that 
14 

will be the central board where students can go and be connected 

in with everything that is happening across the government. 

Senator JOHNSON. OK. I am out of time. Are we going to be doing 

a second round? 

Senator AKAKA. Yes, we will have a second round. 

Senator JOHNSON. Well, I will wait for the second round, then. 

Go ahead. 

Senator AKAKA. Director Berry, you discussed OPM progress on 

eliminating the retirement claims backlog since this Subcommittee’s February hearing. I am pleased with the reforms that are underway now. However, as you know, concerns remain about the 

paper-based retirement processing model. What recent steps has 

OPM taken to address the management challenges that contributed to past IT modernization failures? 

Mr. BERRY. Yes, Mr. Chairman. First, if I could answer both 

those questions, we have been submitting monthly to you our report on how we are doing on the plan that we submitted, worked 

out with the Subcommittee. You will recall that our goal is to get 

to where every retirement can be processed within 60 days, and so 

that is our target, and we promised that we would reach that by 

next summer, and we mapped out how we would get out of the 

backlog of over 60,000 cases we had when we had the last hearing 

on this. 

I am proud to report we are now at 40,000 in terms of the backlog. We have come down 20,000 cases. And we have managed to 

stay ahead of schedule, even though retirements have been higher 

than we had originally projected in the plan. This last month, we 

got hit with a big infusion of Postal retirements, and our hope is 

that, without more surprises, we can continue to stay ahead on this 

plan. 

But so far, so good. We are on track to meet our commitment to 

you ahead of schedule. And so I am going to continue to drive that. 

It continues to be my highest priority and we will not take our eye 

off that ball. 

The other thing we submitted, you will remember Senator Warner, who came to the last hearing on that, also asked that we 

would supply the accuracy of the forms that we were getting from 

the agencies and whether we were getting complete files or not. 

And I promised that by September, we would be reporting on that, 

and the report that you just received shows now agency by agency 

as to the inaccuracy rates among each of the agencies in terms of 

the incomplete files that we are receiving. 

My hope is that some of the agencies that do not look so good 

in that report are going to tighten their game and greatly help us, 

because that has been one of—there have been many ways we have 

been able to drive this backlog down, but that has clearly been one 

of them, having agencies give us better files to start. 

On the IT strategy, because, clearly, we cannot keep going like 

we are doing. This, as Senator Johnson—as we were explaining 

during the last hearing, we are stuck in this paper-pencil process 

because that is where we are in terms of the records we have are 

not automated in many cases. Some of the files we get have some 

automated data, but not all. And so we have this. These issues are 

going to be ongoing for a while. 
15 

But because there had been so many false starts—I remember I 

promised you at that hearing we would not move forward with 

wasting more money because millions of dollars had been wasted 

in previous attempts to automate this. We have been working with 

Steve VanRoekel and the IT experts over at OMB, and Kathy 

Dillaman, who has been helping us develop this. We are developing 

an IT strategy that we will be presenting to OMB through the 2014 

budget that, depending on our negotiations there, I hope to be able 

to look forward to presenting in terms of the President’s budget to 

you, the Congress, next spring with an IT strategy that will have 

short-term, medium-term, and long-term approaches to how we can 

ultimately be where we need to get, which is to have this be a totally electronic process. It is incredibly crazy that it is not already, 

but we have to deal with reality, and getting there, this plan will 

lay out how that is going to occur. 

Senator AKAKA. Director Berry, as you mentioned, my Non-Foreign AREA Act provided Federal workers in Hawaii, Alaska, and 

the Territories with much-needed retirement equity. I want to 

thank OPM and especially thank you and your staff for your work 

in implementing it. The Act can sometimes interact with other laws 

in unforseen ways. Recently, Congress passed the phased retirement initiative that OPM is in the process of implementing. How 

will phased retirement interact with the Non-Foreign AREA Act 

and what steps is OPM taking to prepare itself and the workforce 

for these changes? 

Mr. BERRY. Mr. Chairman, as you know, we are at the tail-end 

of converting from the cost of living adjustment (COLA) system to 

the retirement equity program that you put into place and our locality increases will now be covering that system and the workers 

in both Alaska and Hawaii will now—previously, Senator Johnson, 

those workers did not have those adjustments counted towards 

their retirement and so they were sort of disadvantaged when it 

came time to calculating their retirement. The Senator put in place 

a system to provide equity across all Federal employees in that regard, and we had to convert from that system to a new one over 

a period of 3 years. 

We are now on the third year of that conversion. It is going 

smoothly and our staff—and I want to thank your staff, Senator, 

for—they have been so great to work with. It is a very complicated 

situation and we could not have gotten the word out to retirees and 

active employees had it not been for the help of your great staff, 

sir, so thank you extremely much. 

But my expectation is that phased retirement should not affect 

this system because whether you are in a phased retirement program or a full retirement program, the application of the locality 

adjustment should be the same. So we are in the process now of 

drafting the regulations of the law that you recently passed, thanks 

to, again, your leadership, Mr. Chairman, of phased retirement. We 

thank you, and Senator Johnson, thank you. I think it is going to 

be a great tool in our toolbox for keeping—I think Gene would 

agree with me on this. When he talks about 50 percent of our SES 

being eligible to retire, well, we all—a lot of folks want to go play 

golf, and that is fine. Obviously, that is their right. But many 

would say, golf once or twice a week would be enough. I would like 
16 

to work for 3 days a week still. And by giving us that phased retirement bill, we can now give that opportunity. And so we are 

going to be able to keep the skill set and some of those highertrained workers longer through using phased retirement. 

We are in the process of drafting those regulations, Mr. Chairman. I hope to have the first round of those regulations issued by 

the end of the year, because many workers, as you know, in January make their decision as to whether to retire or not, and I would 

like to at least be able to put out there—the regulations will clearly 

not be finished, through the public comment process, et cetera, by 

that point, but they will have a good idea of how the program will 

run and they can then make their retirement decision based on 

whether they want to stay or take their option in January. 

So that is my goal, Mr. Chairman, and our expectation is that 

the adjustments should be the same regardless of whether they are 

on the phased system or the full retirement. 

Senator AKAKA. Thank you very much. 

Senator Johnson, your questions. 

Senator JOHNSON. Thank you, Mr. Chairman. 

Let us go to the issue of hiring veterans. Obviously, I am pleased 

that the statistic has gone from 24 percent to 28.3 percent. In my 

previous life as an employer, we certainly found hiring members of 

the military, veterans, were just our best hires. I mean, the United 

States military is really one of the finest training organizations in 

the world, and, of course, people leave there with a wonderful esprit de corps. What are the impediments for increasing that? I 

mean, is this kind of the high-water mark? Could we dramatically 

increase it? Is it a mismatch to job skills, lack of interest on the 

part of veterans willing to work in the Federal workforce? 

Mr. BERRY. I do not think we are at the high-tide mark. I think 

a lot of it is skills translation and we have been working. We have 

a Veterans Hiring Council that we work across agencies with that 

is helping—working with DOD to translate. A good example is med 

techs. Med techs have some of the most amazing training on emergency medical procedures, et cetera, that have to be faced, and yet 

they come back and they are not certified as R.N.s or nurses because they do not have the academic credential. 

And so what we have been working on is programs, pilot programs, where we can hire them based on their experience and say, 

look, we will help you go to school part-time so that you can get 

the R.N. degree, get your certification, qualification, and pursue a 

career in this field if you like. You have a great start and let us 

help you go the whole way. 

And so some of these things, especially a lot of the cybersecurity 

issues and communications issues, need that kind of skill translation that can be available. Nursing is an area where our veterans 

hospitals, we are always looking for talent. Here is a great place 

where we could grow that talent by using our veteran corps returning, from our med techs, is a good example. 

Senator JOHNSON. Do you— 

Mr. BERRY. So you are exactly right. They are phenomenally 

trained. We spend billions of dollars in training them. We would 

be damn idiots to ignore them. And so bringing them in has been 

essential. It has improved the quality of our workforce. What is not 
17 

captured in that number—out of a workforce of 1.8 million fulltime, 570,000 of them are veterans. And so it is a great contribution. They get—both our men and women in the civil service and 

our men and women in uniform take the exact same oath, to defend and protect the Constitution. This way, what we tell our veterans is, when you take the uniform off, you can still continue your 

oath and serve. 

Senator JOHNSON. And again, that half-million people is outside 

the Department of Defense? That is just other agencies? 

Mr. BERRY. Yes. This is across the government. 

And one last—if I could, just one more, one last statistic, Gene— 

that I am very proud of, Senator, is we have also maintained a separate focus on hiring of disabled veterans. The disabled percentage 

numbers went from 7 percent in 2009 to 9 percent in 2011. So we 

have increased our hiring of disabled veterans over that period of 

time, too. So both numbers have gone up in terms of our veterans 

hiring. We are looking good. And that is thanks—again, to our 

partnerships with the American Legion and the Veterans of Foreign War (VFW) and others who have helped us get the word out, 

Vietnam Veterans, others, are working with these great people. 

Senator JOHNSON. Great. Mr. Dodaro. 

Mr. DODARO. I just wanted to add that the Defense Business 

Board, which is a group of private sector individuals and the business community that advises the Secretary of Defense—I sit as an 

observer on the Board, they have done a study talking about how 

this area could be addressed. For example, to make sure that 

DOD’s training programs are pre-certified to help people then get 

jobs when they reenter back into the civilian world. They provide 

a lot of this training—let us take, for example, repairing aircraft— 

but a lot of them are not necessarily in sync to be certified for activities, which means that when they come out of the service, they 

have to spend time getting recertified. So they are trying to bring 

the DOD programs in sync to have them pre-certified, and that, I 

think, will more easily facilitate their reentry back into the civilian 

workforce. 

Senator JOHNSON. One thing that I have always found drives 

performance is actually having goals. Do individual agencies have 

specific goals? Does OPM have a specific goal that is going to measure your success in this area? 

Mr. BERRY. Yes, and in fact, the President’s Executive Order 

(EO) on this has been what I think has been a very—what has 

made this program different, why we have had this wonderful over 

4 percent increase, which is unprecedented, is because we took an 

approach that treated agencies differently. Rather than sort of saying, everybody have, like, a 1 percent increase, we said, if you are 

doing a great job, we are not going to ask—you just need to keep 

pace. Keep doing what you are doing, and if you can do a little better, great. 

A good example of that is—what agency in the Federal Government hired the highest percentage of disabled veterans’ hiring in 

the United States Government last year was not the Department 

of Defense and it was not the Department of Veterans Affairs (VA). 

It was little old OPM. We had the highest percentage of hiring of 

disabled veterans. So I am already in a pretty good category, and 
18 

so my goal is—what I have told our people—let us stay or get better. 

Now, there are some—I am at a 20 percent, almost 30 percent 

category of my hires, all right. So I am in that block, the 20 to 30 

percent block. There are a number of civilian agencies in the below 

10 percent block. What we have done is created a model and say, 

if you are in that block, you need to lose weight and pick up the 

pace, and your goal increase is 5 percent this year. And then in the 

mid range, you have an increase of 2 to 3 percent. And then for 

those who are already doing a great job, stay there and do better. 

And that has been—we break this out. I can get you a report 

that will show you, department by department, where they stand, 

what their percentage hiring is, what their goal for the year is, how 

they are doing, and we can report on that to you. We now follow 

it that closely, sir. 

And, quite frankly, the other thing that has really helped—I 

have to say a great thanks to the President, because when I went 

to him, I said, Mr. President, we can have meetings on this and 

I can invite people to meetings, but I am getting the C team. We 

need the A team focused on this. And the President’s response was, 

‘‘What if we have the meeting in the Roosevelt Room and I chair 

it?’’ I said, that will get me the A team. And he did it, and it has 

brought that level of focus. When he brought every cabinet Secretary and Deputy Secretary into the room, it got attention, and 

that is what—so why has this happened? It has been good leadership. It has been a great strategic plan. It has been accountability 

and metrics with numbers. And I can get you—we can report on 

that for the record. 

Senator JOHNSON. OK. Thank you very much. 

Senator AKAKA. Thank you very much, Senator Johnson. 

This has been a great hearing. Responses have been great. It is 

so good to hear what you have been doing, the progress you have 

made already, and the practices you have been in have been working out better than before. So the future looks good, and I am glad 

to hear all of this at this time. 

I want to thank the two of you for your excellent work that you 

have been doing for our country and some of these ideas you mentioned that we are doing. We need to press forward and try to carry 

them out and meet the need that is coming. As you both pointed 

out, in a few years, we will have huge retirements, and just think 

about that. I mean, who is going to come in and replace them? And 

we want, of course, the best that we can, so working with the colleges and universities is a great answer to that, and again, partnership with another group in the community. 

So this is great, and again, I cannot thank you folks enough for 

all you have done, you and your staff. It has been a tremendous 

effort and it has been a privilege for me to work with you. So I 

want to thank you very much at this time, you and your families, 

as well. It is good to have Senator Johnson’s family here, as well, 

and friends and supporters. So thank you again and much aloha 

to you. 

Mr. BERRY. Aloha, Senator. Thank you so much. 

Mr. DODARO. Thank you. 
19 

1The prepared statement of Ms. Kelley appears in the appendix on page 67. 

Senator AKAKA. On our second panel this afternoon, we have Ms. 

Colleen Kelley, President of the National Treasury Employees 

Union; Mr. J. David Cox, the newly elected President of the American Federation of Government Employees; Max Stier, President at 

the Partnership for Public Service; and Mr. William Bransford, who 

is representing the Government Managers Coalition. 

I want to welcome all of you back, each of you. It is good to see 

you. As you know, it is the custom of this Subcommittee to swear 

in all witnesses, and so I ask you to please stand and raise your 

right hand. 

Do you swear that the testimony you are about to give the Subcommittee is the truth, the whole truth, and nothing but the truth, 

so help you, God? 

Ms. KELLEY. I do. 

Mr. COX. I do. 

Mr. STIER. I do. 

Mr. BRANSFORD. I do. 

Senator AKAKA. Thank you very much. Let the record show that 

our witness answered in the affirmative. 

Let me just remind you that, as you normally do, please limit 

your oral statements to 5 minutes, and your full statements will be 

included in the record. 

I look forward to hearing from you, Ms. Kelley. Please proceed 

with your statement. 

TESTIMONY OF COLLEEN KELLEY,1 PRESIDENT, NATIONAL 

TREASURY EMPLOYEES UNION 

Ms. KELLEY. Thank you very much, and aloha, Chairman Akaka. 

Senator AKAKA. Aloha. 

Ms. KELLEY. It is an honor and a pleasure for me to be here 

today. As the President of the National Treasury Employees Union 

(NTEU), I am very proud to represent over 150,000 Federal employees in 31 agencies and departments. And on behalf of NTEU 

and all of our members, I am very sorry that this will be my last 

opportunity to testify in front of you, my good friend, Senator 

Akaka. Your advocacy on behalf of Federal employees, from your 

efforts to ensure fair pay and benefits to your actions to protect collective bargaining rights, will be truly missed. 

The Federal employees represented by NTEU are budget analysts, overseeing multi-billion dollar budgets. They are physicians 

undertaking cutting-edge research to cure deadly diseases. They 

are law enforcement officers guarding our borders. And they are 

scientists safeguarding our food and our water supplies. 

We all know that our country faces serious challenges. Federal 

employees have not been exempt from those challenges or immune 

from efforts to resolve our fiscal difficulties. NTEU has been very 

pleased to work with you, Senator Akaka, during your long career 

in the House and the Senate on so many Federal workforce issues, 

including the effort to achieve retirement equity that you mentioned for Federal workers in Hawaii, Alaska, and the U.S. Territories. Your Non-Foreign Area Retirement Equity Assurance Act 
20 

corrected an inequity that NTEU members and many others had 

suffered for years. 

Similarly, you have long understood the Federal Government’s 

need to compete with the private sector for the best talent. You 

have worked tirelessly to improve the hiring process and to make 

sure that the Federal Government employs the full range of workplace flexibilities that are available to most private sector workers. 

Your Telework Enhancement Act, signed into law in 2010, was a 

major step forward. 

Another of your major achievements was the Federal Employees 

Retirement System (FERS) change, permitting employees to include their unused sick leave when determining their length of 

Federal service for retirement. When the provision is fully phased 

in at the end of 2013, FERS employees will be treated the same 

as their counterparts in the Civil Service Retirement System 

(CSRS) system. 

Your legislation also corrected a longstanding flaw in how the 

government valued part-time service. 

Earlier this year, you held a hearing on the Office of Personnel 

Management’s processing of Federal retiree annuity payments, 

which we heard about in the prior panel. You brought much-needed 

attention to the backlogs that OPM faced, and your hearing resulted in OPM’s plan to reduce the backlog, and improve services 

to Federal employees and retirees. 

You have also championed legislation eliminating the Open Season for employees to enroll in the Thrift Savings Plan (TSP), providing retirement and financial literacy programs for employees, 

and allowing Federal employees over the age of 50 to make catchup contributions to their Thrift Savings Plan accounts, putting 

them on equal footing with their private sector counterparts. 

And your Whistleblower Protection Act, which passed the Senate 

earlier this year, will restore and expand protections for Federal 

employees who disclose waste, fraud, or abuse in the Federal Government. 

NTEU also strongly supported your opposition to unfair changes 

to the Federal Employees Compensation Program (FECA). Your 

amendment to the Senate Postal reform legislation sought to fix a 

provision cutting benefits to workers who were injured on the job 

and those who are older or have family obligations. And NTEU also 

salutes your support of legislation to allow Federal workers with 

domestic partners to participate in employee benefit programs. 

Your career has also been marked by your leadership efforts to 

right size the Federal employee workforce compared to the contractor mix. NTEU has long maintained that Federal employees, 

given the appropriate tools and resources, do the work of the Federal Government better and more efficiently than any private entity. 

NTEU is also grateful for your leadership with regard to the 

Safeguarding American Agriculture Act, recognizing the mission of 

Customs and Border Protection (CBP) agriculture specialists in 

safeguarding our Nation’s food and agriculture from foreign pests 

and disease. 

Finally, I commend you for your strong support for the rights of 

Federal employees to organize and to collectively bargain. NTEU 
21 

1The prepared statement of Mr. Cox appears in the appendix on page 75. 

believes that the best way to achieve agency missions and optimal 

work-life balance is for an organization to involve its employees, 

and you have always supported that. 

On behalf of Federal employees across the Nation, Senator 

Akaka, thank you for your dedication and your commitment to 

making sure that employees are treated fairly and have the tools 

they need to provide the services the American public expects. We 

were so pleased we had the opportunity to honor you with an 

award recognizing your leadership on behalf of Federal employees 

and retirees at our legislative conference earlier this year. It has 

been a distinct honor and privilege to work with you. Your voice 

will be missed, but your accomplishments on behalf of Federal employees will live on. 

Thank you, Senator Akaka. 

Senator AKAKA. Thank you. Thank you very much for your kind 

words, President Kelley. I certainly will miss you, as well. 

Mr. Cox, will you please proceed with your statement. 

TESTIMONY OF J. DAVID COX, SR.1 PRESIDENT, AMERICAN 

FEDERATION OF GOVERNMENT EMPLOYEES, AFL–CIO 

Mr. COX. Thank you very much, Senator Akaka. It is a great joy 

and pleasure of mine for the first time that I am the AFGE National President to be able to testify before my favorite Chairman 

and my favorite Senator from my favorite State. But most of all, 

I am proud to represent the 670,000 Federal employees that work 

Nationwide serving this country and serving the American people. 

As we talk today about investing in Federal employees, Chairman Akaka, you were the one that truly knows about investing in 

Federal employees. To get the best and the brightest, we have to 

pay a fair wage. We have to have good benefits. We have to have 

all the things that attract Federal employees to do a great job and 

to work for the Federal Government and to commit themselves to 

civil service. You have been the champion of that through the 

years, sir, and AFGE applauds you and thanks you for all of those 

things that you have done. 

You have stood firm when folks have said, cut Federal employee 

pay. Cut their retirement. Cut their benefits. And Congressman, 

you led the way when it came to standing firm for the Federal Employee Health Benefit Plan (FEHBP). You said ‘‘no’’ a dozen times. 

That will not be an example or a test pilot for a voucher system 

for Medicare. And every Federal employee and retiree Nationwide 

thanks you very much for standing firm on those issues and thanks 

you for their health care that they receive on an ongoing basis. 

Mr. Chairman, you have been the best through the years. When 

I look at all the accomplishments that you have done, you have 

stood firm on the issues of sequestration. And I know that as we 

enter those days in the very near future that we will be able to 

count on you every day that you serve in the U.S. Senate. 

And I would certainly today point out to you that the SimpsonBowles plan is not the only plan that is out there. Each time we 

talk about cutting Federal employee pay, cutting Federal employee 

benefits, cutting everything about them, I am sure everyone under-
22 

stands you are not going to recruit these folks as long as you cut. 

All other companies, all other corporations and entities in this 

country are trying to figure out how to do better by their employees, and Mr. Chairman, you have always been there for Federal 

workers Nationwide. 

And, when I look at the fact about the non-foreign COLA, you 

were the one that championed that. But also, when I look at the 

Thrift Savings Plan, there are many Federal Government workers 

that will say, thank you, Chairman Akaka, that you encouraged me 

to save for my retirement, and no one will ever criticize you that 

you made them save too much by getting in there and rolling automatically and moving forward with the escalator to eventually 

reach the maximum that they can contribute. 

I also have to say thank you, how you stood firm on the Transportation Security Administration (TSA), sir. You have always believed that collective bargaining was the right way to go for Federal employees and you have championed that cause repeatedly, 

over and over. And I am proud to report to you today that TSA is 

in the final stages of bargaining a contract that they have a dispute 

resolution process, and they will be ratifying that contract in the 

very near future, in a matter of days, sir. And it happened because 

of your leadership in the U.S. Senate and believing that the government and the public’s best interest is served through collective 

bargaining. 

And not only with TSA and the whole Homeland Security, sir, 

the National Personnel Security System, MAX HR, all of those systems were built upon the fact of, hey, national security, let us destroy collective bargaining. You stood firm and said, no, it is about 

protecting Federal employees and championing those employees 

who serve this government every day with everything that they 

have. 

And, Mr. Chairman, on a personal note, my 23 years of service 

in the VA as a registered nurse, I was proud to serve those years, 

taking care of America’s veterans, and you were always the champion of serving America’s veterans. And I think the most applaudable legislation that I have seen passed in the U.S. Senate is the 

advanced appropriations for the Department of Veterans Affairs, 

sir. And every veteran in this country and their family thanks you 

and all the Members of Congress that led that charge, sir. And I 

would say, if we want to hire more veterans, more disabled veterans, create more government jobs for those men and women that 

served this country and put that service continuing for the Federal 

Government and the American people. 

Senator Akaka, I do not know if I am going to let OPM process 

your retirement. I may talk to Mr. Berry and say, no. How do I 

thank you for all the years of service? You are the best Chairman 

and the best Senator, and you are still from the best State, sir. And 

aloha, and I plan to come visit you often. 

Senator AKAKA. Please do. 

Mr. COX. Thank you very much. 

Senator AKAKA. Thank you very much for your testimony and 

your kind words and your recollection of what we have been 

through the years. It is good for our country. And I want to congratulate you. I know you have worked hard all these years and 
23 

1The prepared statement of Mr. Stier appears in the appendix on page 88. 

now I need to call you Mr. President of the AFGE. I wish you well 

in your work. 

Mr. COX. Nothing gives me more pleasure than for you to say 

Mr. President, sir. Thank you very much. 

Senator AKAKA. Thank you. 

And now, Mr. Stier, will you proceed with your testimony, Max. 

TESTIMONY OF MAX STIER,1 PRESIDENT, PARTNERSHIP FOR 

PUBLIC SERVICE 

Mr. STIER. Thank you, Mr. Chairman. It is truly a great honor 

to be here to testify at your last hearing. When you hear what everyone has said, it is not just what you have done, but it is how 

you have done it that is remarkable. You are truly a public service 

hero in all respects and it has been a personal pleasure to have had 

an opportunity to work with you. I am confident and am filled with 

hope that you will keep your oar in the water here and continue 

advising folks on the critical issues that you have been paying attention to up until now. 

I want to take this opportunity to offer a few thoughts, and press 

on three principles that I think are really important as we enter 

into the critical phase in government that we are in today. The 

first is that we need to continue the good work that you and this 

Subcommittee have started and that is being done right now. There 

is far too much of a tendency to move on to new initiatives and not 

to carry forth with those that have already been started. The truth 

is that the real returns will come from carrying on work that has 

already begun, and that includes the hiring reform work, where we 

have seen a 15 percent drop in the time to hire. We have a ways 

to go, but we need to press forward on the work that is already 

being done and that this Subcommittee has focused on. 

Clearly, there is a critical need to bring in a new generation of 

talent to the Federal Government. What we know today is that 

about 8 percent of the Federal workforce is from the millennial 

generation. In the private sector millennials represent 25 percent 

of the workforce. We also know the Federal Government today only 

converts 6 percent of its interns into full-time employees, while the 

private sector converts 50 percent of its interns. The government 

needs to do a lot of work to ensure that it has that next generation 

of talent in its workforce and is more in line with the private sector. 

Clearly, the issue of telework is an important one, one that you 

have championed and that I think also presents real opportunities 

for government to be better. 

The second principle I would propose is that we need to respond 

to the budget pressures that we have today. We need to focus on 

smarter and better government rather than just less government. 

That requires at least three different things. 

First, this approach requires a strategic long-term view about 

what kind of investments we need to make rather than across-theboard cuts, which is the tendency in most instances. 

The second is a recognition that people are really the most important asset in government. This is true in almost every knowl-
24 

edge-based organization. The Patent and Trademark Office is a 

good example of this. Their telework program has already saved 

$20 million and it saved it through increased productivity and 

more engaged employees, which is something that we should see 

across government. 

Similarly, the VA has been an incredible investor in the training 

of talent. They have shown over the past year $200 million in return on investment (ROI) through the reduced turnover of critical 

talent, and $100 million in costs saved through their alternative 

dispute resolution mechanisms. This kind of demonstrated savings 

is absolutely critical. The ROI is very strong. We need to be able 

to make that case for these investments, because if we do not make 

those investments, we are not going to get out of government what 

we want. 

Third, and I would propose this is probably the more contentious 

proposition, and that is that we have had a great government, but 

to keep up with the world that we are operating in, we are going 

to need some changes, and that is going to involve a broader review 

of our civil service system. 

The third principle I want to press on is that we need to build 

on the good inside government. We will never get out of our government what we want if all we do is tear it down. As a father of 

young children, I know that positive reinforcement works a lot better than the negative and we have a lot of amazing things that are 

going on in government. The Service to America Medals, which we 

just conducted last week serve as a reminder of the incredible 

things Federal employees are doing within government. 

For examples. Charles Scoville, who works at Walter Reed, has 

applied sports medicine principles to veteran rehabilitation. He has 

had 1,500 veteran amputees come through his program. There are 

over 300 that have returned to active duty, including 55 that have 

returned to Iraq because of his work. They are doing extraordinary 

things like climbing mountains, running triathlons, and doing 

Ironmen. 

A second example is Susan Angell and Mark Johnston, one from 

the VA and one from HUD, and the team that they worked with 

to end veterans’ homelessness. In the past year, they have reduced 

veterans’ homelessness by 12 percent. This is remarkable given 

that there are a lot more veterans coming back and having challenges. As you can see, there are a lot of amazing things that are 

going on and we need to highlight those examples. We need to recognize those people and we need to build on their success. 

So finally, Senator, I may get this wrong but mahalo nui nui loa, 

because you deserve extra big thanks for all the amazing things 

you have done. I have been at the Partnership now for 11 years 

and you have been there from the beginning. Working with you has 

been one of my greatest pleasures, so thank you. 

Senator AKAKA. Thank you very much, Mr. Stier, another President, and thank you for your work. 

Mr. STIER. A tiny one. 

Senator AKAKA. Yes, well, thank you very much for your kind remarks. 

Mr. Bransford, would you please proceed with your statement. 
25 

1The prepared statement of Mr. Bransford appears in the appendix on page 98. 

TESTIMONY OF WILLIAM L. BRANSFORD,1 REPRESENTATIVE, 

GOVERNMENT MANAGERS COALITION 

Mr. BRANSFORD. Chairman Akaka, thank you for the opportunity 

to provide the views of the Government Managers Coalition (GMC) 

on the management challenges facing the Federal workforce. I am 

representing the GMC here today, which includes the Senior Executives Association (SEA), the Federal Managers Association 

(FMA), the Professional Managers Association (PMA), the FAA 

Managers Association (FAAMA), and the National Council of Social 

Security Management Associations (NCSSMA). 

Before addressing the areas of focus, I would like to take a moment to thank you on behalf of the GMC. You have been a champion of the Federal workforce for many years. It has been our 

pleasure to work with you and your staff. Your leadership on workforce issues will be missed and we wish you well in retirement. 

In an era of diminishing resources, it is essential that Federal 

managers and executives are given the tools to effectively manage 

the workforce. I would like to highlight a few of the most pressing 

issues facing Federal managers and executives. 

The first is reform of the Senior Executive Service. The GMC as 

a group has not taken a stance on SES reform. However, as you 

know, this is the signature initiative of a GMC member, the Senior 

Executives Association. SEA has several recommended areas of reform which appear in legislation that you have introduced which 

is pending in both the Senate—you have introduced in the Senate 

and there is a companion bill in the House. These include principles to restore career leadership, create a fairer and more transparent pay-for-performance management system, provide training 

and continuing development for the SES, and create diversity within the SES. Each proposal is outlined in more detail in our written 

testimony. Making such reforms to the SES will help all agencies 

recruit, particularly help them recruit the next generation of senior 

executives, and will help all agencies retain the best senior executives and ensure that they have the necessary leadership to successfully accomplish the missions of their agency. 

Another area of strong interest to the GMC is supervisory training. Often, supervisory employees are promoted based on their 

technical skills in a certain area, not management capabilities. 

Upon reaching a supervisory position, these employees must take 

on the added responsibility of managing complex personnel systems, conducting performance reviews, and dealing with performance issues, such as adverse actions. Most employees do not receive 

initial or ongoing training in the areas critical to effective management. 

We have worked with you, Senator Akaka, to craft the Federal 

Supervisor Training Act to require that supervisors be provided initial training within 1 year of promotion to a supervisory provision, 

with training updates every 3 years. The measure establishes competency standards to ensure the training is conducted effectively. 

Progress on supervisory training has been made, but the GMC continues to believe that legislation is necessary to ensure that proper 

investment into training is made. 
26 

Over the past year, the GMC has grown increasingly concerned 

about the existing retirement backlog at OPM. Given increased use 

of early retirement authority and the potential changes to retirement benefits being considered by Congress, we expect the retirement numbers will continue to increase. OPM has made significant 

progress in addressing the current backlog and the GMC applauds 

these efforts. However, much remains to be done. We have proposed several measures to help ease the backlog. These are outlined in our written statement. 

The GMC also understands that OPM is working under the same 

constraints as other Federal agencies, limited funding and personnel directed at this issue. Resource investment is necessary for 

OPM to tackle the outstanding problems with the retirement processing systems. 

Of continuing concern to the GMC is the ongoing general exclusion of management associations from agency labor-management 

forums. Regulations allow agencies to consult and communicate 

with non-labor organizations representing Federal employees. 

While the regulation does not require agencies to include management associations in forums, the GMC believes that such inclusion 

leads to increased effectiveness when all stakeholders are brought 

into the decisionmaking process. The GMC would like to see the 

broader inclusion of management associations in labor-management forums and continues to look for ways to work together toward more effective agency policies. 

In conclusion, the Federal Government is faced with increasingly 

complex problems and mandates. The Federal workforce is being 

asked to do more with less. The attention to these problems and 

the investment to address them is often uneven. The GMC would 

like to see the necessary conversation about the priorities of the 

Federal Government, what resources each agency needs to carry 

out its mission, and the tools that the Federal workforce needs to 

be effective. The GMC looks forward to continuing this conversation with the Subcommittee. 

Thank you very much. 

Senator AKAKA. Thank you very much, Mr. Bransford, for your 

testimony. 

Mr. Bransford, you state in your testimony that progress in 

training supervisors and managers has been uneven across the government, and often training is the first thing to go when the budgets are cut. Will you please discuss why you believe it is important 

to have uniform training standards across the government and how 

this might be done in a cost effective manner. 

Mr. BRANSFORD. Chairman Akaka, I think steps are already 

being taken by the Office of Personnel Management. They have 

created the HR University (HRU), where they provided some very 

significant and quality online training. And I know that through 

the CHCO Council, there are efforts being made to work with other 

agencies to share this training. 

What is lacking is an enforcement mechanism where agencies actually require their new supervisors to take this training, where it 

is communicated to them. Also, what is lacking is any effective 

feedback from agencies, from OPM, about how effective the training has been. 
27 

I do applaud OPM for what it has done with the HR University. 

It has created a free training mechanism. I do believe with legislation to actually require this training, that it will continue to be 

more effective. And I think it is just very basic as we deal with performance management as a whole that supervisors learn how to do 

a performance evaluation, they learn how to deliver performance 

feedback, they learn when and how to do an adverse action when 

it is necessary, because by having this competency across the supervisory ranks throughout the Federal Government, it will make 

the Federal Government more effective, reduce Equal Employment 

Opportunity (EEO) complaints, reduce adverse actions because 

managers will actually manage more effectively. 

So I continue to believe, and I think the GMC does, that legislation is necessary, while progress has been made. 

Senator AKAKA. Thank you, and thank you very much for your 

responses. It is good to hear from the trenches as to whether some 

of these programs work well. And if we can refine it and improve 

it, well, that is great. So I am glad we are moving in that direction. 

Ms. Kelley and Mr. Cox, last year, this Subcommittee held a 

hearing on the President’s Executive Order on labor-management 

relations and the work of the National Council. As you know, I support labor-management forums and encouraged the President to 

issue this Executive Order. I am interested to hear from each of 

you about the feedback you have received from your members on 

the establishment of forums at the agency level. Ms. Kelley. 

Ms. KELLEY. In our agencies, I would say that the majority of 

employees would say that it has gotten off to a pretty slow start. 

They are aware of the Executive Order and they, along with 

NTEU, have high hopes that we will be able to breathe life into 

this and to make a real change in how we do business. But we are 

not there yet. And it is different in every agency, and it definitely 

is about the tone that is set at the top and also how long it takes 

to get through all the layers of management. Much depends on the 

size of the agency and the structure of the agency. 

I think in most agencies, the commitment to it is there, but everybody defines it a little bit differently. We have had to do, in my 

view, more work than we should have had to on things like defining what is pre-decisional involvement. I think the Executive Order 

is very clear in what pre-decisional involvement is, and yet we 

struggled with it at the national forum level for entirely too long 

and we are also struggling with this in a lot of our agencies. 

But I do believe that the agencies know that the Executive Order 

is there and they believe that it is to be acted on. It is not like flipping a light switch, however, we could not just flip it and go back 

to the way things were under the old Executive Order under partnership, which is what some hoped would happen. I knew that 

would never happen, but in my view, it has just been a little slower 

start than I had hoped. I am determined that we are going to give 

it a kick start and breathe life into it because it will be a win for 

the agencies, a win for the employees, and a win for the taxpayers. 

Senator AKAKA. Thank you very much. Mr. Cox. 

Mr. COX. Mr. Chairman, I think we would also agree that it has 

been off to a slow start, and I had my first meeting with the national forum this morning. What I am hearing from our folks out 
28 

in the trenches, that yes, they know about the Executive Order. 

Our locals are very much aware of it. I believe at agency head levels, Secretaries and those type levels, that, yes, there is a strong 

awareness of the President’s Executive Order. 

But it seems to stop at the management careerist level, with the 

SES-ers and the higher level managers, that there is not the desire 

to embrace labor-management forums or partnerships—and I actually like the word ‘‘partnership’’ much better, because I do believe 

labor and management has to form a partnership, work together, 

and design and resolve problems cooperatively. When we have protracted litigation, very bad relationships, those all prove to be an 

expense and a deterrent to morale. 

So I believe strong labor-management forums, partnerships, can 

resolve a lot of that. But we also believe that it is moving a little 

too slow. We believe that there was stronger emphasis from the career managers, and we believe we could get that stronger interest 

from a stronger push from the top, from the Secretaries, Deputy 

Secretaries, and agency heads. 

Senator AKAKA. Thank you, Mr. Cox. 

Mr. Bransford, last year, I held a hearing to examine the Senior 

Executive Service. You mentioned that in your testimony. Witnesses testified about the need to reform pay, hiring, candidate development, and also mobility. As your testimony notes, I introduced 

the SES Reform Act to address issues facing our government’s senior managers. Of the issues covered by the legislation, which do 

you believe are the most in need of reform and why? 

Mr. BRANSFORD. Mr. Chairman, I think our feedback from the 

Federal community, particularly the pipeline into the Senior Executive Service, is that many of the highest quality potential candidates are losing interest in coming into the Senior Executive 

Service and they are losing interest because they do not view the 

increase in pay and the extra work that they have to do to be commensurate with the risk that they take in going into the Senior Executive Service. There is a loss of interest in coming into the SES. 

Therefore, I think the two most significant parts of the SES Reform Act are, first, to increase the stature of the Senior Executive 

Service by requiring agencies to fill certain high-level positions that 

are positions where you would expect continuity and expertise with 

career senior executives. This raises the stature. It raises the visibility. And it makes the SES, I think, as a whole—the career SES, 

as a whole, more attractive to GS–14s and 15s. 

And I also, quite frankly, think that we have to have some reform to the pay system. I know that is not something people like 

to talk about at these times, but I think when Federal pay increases, annual pay increases, are eventually restored, for a fully 

successful performing senior executive to receive at least that much 

of an increase, to be assured of that, it takes away a little bit of 

the risk and the uncertainty about applying for the SES. 

And then one of the very important provisions in the SES Reform 

Act is including the performance awards as part of the high three 

calculation toward retirement. We think that is extremely important because that will encourage the very best GS–14s and 15s to 

apply to the Senior Executive Service, believing that they are likely 

candidates for a performance award that will count for and in-
29 

crease their annuity. It will provide that extra incentive to recruit 

the next generation of government leaders. 

Senator AKAKA. Thank you, Mr. Bransford. 

Mr. Stier, as you testified, the Partnership for Public Service 

supports rotational experience as part of candidate development 

and entry into the SES. Will you please discuss why you believe 

diverse work experience is important to be an effective leader and 

manager? 

Mr. STIER. Thank you, Mr. Chairman. Absolutely. I think that 

one of the great conundrums for government is that most of the 

critical problems that government has to address are horizontal 

problems, but the government itself is organized vertically. Things 

like food safety or cybersecurity all involve multiple organizations 

inside the Federal Government, multiple levels of the government, 

and multiple sectors. Yet we have a senior career executive corps 

that largely understands only the agency they have grown up in. 

Ninety-two percent come from within government, four out of five 

come from within the same agency, and only 8 percent actually 

move agencies once they become an SES member. 

I believe that the way to promote the kind of integration that we 

need in government, the kind of collaborative activity, is to have 

more people who have experienced multiple environments, multiple 

challenges, multiple levels of government, multiple sectors, and 

multiple agencies. I think the way you do that is by addressing 

some of the problems that Mr. Bransford talked about in terms of 

the pipeline, by ensuring that those folks coming into the SES have 

that broader base of experience. I think that would do more to integrate across government, get rid of duplication, and create more 

collaboration than any other single intervention. 

Senator AKAKA. Thank you. 

Mr. Stier, as we have discussed, the media and some Members 

of Congress spend a lot of time pointing out what is wrong with 

the government. The Partnership plays an important role, not only 

pointing out what is right in government, but also in working with 

Congress and others to find solutions to problems that do exist. 

What resources can we use to find more examples of what is going 

right as well as best practices that could and should be emulated? 

Mr. STIER. Mr. Chairman, I would offer two thoughts on that 

score, and thank you for raising this issue. It is striking. We have 

a great architecture in the media, and even within government to 

identify things that are wrong yet we do very little in terms of 

identifying what is right that can be built on and can be spread. 

So the two thoughts I would offer would be, first, when you look 

at the Inspector Generals (IGs), they focus nearly exclusively on 

finding those things that are wrong. It is terrific to find things that 

are wrong if we can fix them, and one way you fix things is finding 

things that are right that you want others to emulate. GAO has 

started the practice of including a best practices part of their portfolio. If Congress actually directed IGs to do the same kind of 

thing, I think that would actually improve the effectiveness of government. It would help identify things that are going well and can 

be applied elsewhere in government. 

The second area that I think we really need to focus on is internal communications. I mentioned the Service to America Medals 
30 

program. Everybody who was in that room on Thursday evening of 

last week walked away just floored by the incredible things that 

the Federal workforce had done. They walked away saying, I wish 

more Americans knew these stories. I share that view, but I also 

wish that more Federal employees knew it. I do not think we focus 

as much on internal communication, inside the Federal Government, as we need to. 

When I talk to folks from great organizations outside the government, they tell me their organizations spend a lot of time making 

sure that their employees really understand what is going right inside their organization. I would love to see more of that activity in 

the Federal space, as well. Thank you. 

Senator AKAKA. Thank you very much for your response. 

Ms. Kelley, I am a longtime advocate of financial literacy and believe it is important to give people the tools they need to be financially responsible. As you know, I introduced the Save More Tomorrow Act, which will encourage Federal employees to add to their retirement savings by automatically increasing TSP contributions to 

receive full agency matching. Employees could also opt out at any 

time, as well. How do you believe my bill could impact your membership’s ability to increase their retirement security? 

Ms. KELLEY. I think it would be a big help to many because I 

think, too often, employees just do not think about retirement until 

they are planning it, and by then, it is a little too late. Getting into 

the habit of saving for retirement is critical. And often you think, 

well, next pay period, maybe I can afford to do it, or maybe next 

month, I can afford to do it. But with your legislation, increased 

savings would become automatic. It would let employees see what 

happens when it becomes automatic and then they could make a 

conscious decision if that just does not work for them right now. 

So I think it is really kind of a best of both worlds scenario and 

will really put saving for retirement in the forefront for them, 

something that a lot of people might not even pay attention to until 

they are 50 or 60 years old. And by then, they have missed the opportunity that your legislation would create for them. 

Senator AKAKA. Does anyone else have any comment to make 

about that? [No response.] 

Well, Mr. Cox, it is my understanding that AFGE and the Transportation Security Administration recently completed bargaining on 

a new contract and that it will be submitted to employees for ratification next month. I would like to hear your thoughts on the bargaining process with TSA and how, if ratified, the new contract will 

benefit TSA, its employees, and the public. 

Mr. COX. You are exactly right, Mr. Chairman. The contract will 

go out for ratification the first of October. The bargaining with 

TSA, it has been a brand new experience because it has been different rules than what we have bargained contracts in the past. 

But we have successfully bargained the contract. 

I think that it will improve many things. I think it provides for 

employee input into the workplace, a way to resolve workplace disputes, which there is nothing wrong with workplace disputes. We 

need a mechanism to resolve those types of issues so that people 

can go on with the work that they need to do. There are provisions 

that deal with uniforms, parking, those types of issues, which are 
31 

very big issues to employees. Many of the Transportation Security 

Officers (TSOs) work in very large hub airports where parking and 

those types of things are a real issue and a real concern. 

The one thing that I have valued the most from the negotiations 

is the dedication of the officers themselves and to the job that they 

do. They realize they are the front line defense of this country 

every second of every day. We have all seen what can happen in 

the past, and these men and women are so dedicated to the work 

that they do. And with bargaining a contract, there were many 

issues that they just believed that were pretty routine. I am supposed to always be available for work, to do a great job no matter 

when. And it was kind of amazing to see the dedication that these 

employees have to protecting this country 24 hours a day. 

But we are very excited about the contract, looking forward to 

completing the ratification and getting it implemented and showing 

that a unionized workforce is an absolute best workforce for protecting this country, just like the men and women that went to the 

top of the World Trade Towers on September 11, sir. Thank you 

very much. 

Senator AKAKA. Well, thank you so much for your efforts because 

that has been a problem for me, personally, too, with the TSA. And 

so I am glad we have come this far now and it looks as though it 

can work out well for TSA, as well. So thank you so much for your 

efforts. 

And I want to thank all of you for what you have been doing all 

of these years. You have made a tremendous difference, and your 

organizations, also, have made a difference in the workforce. As 

you know, on the prior panel, we talked about the number that will 

be retiring, and so we need to look at how we can bring into the 

workforce employees that can really help our government. So we 

are going to have to work on that together and look forward to you 

and all of us trying to do our best in that effort. 

So I want to thank all our witnesses today for your testimony 

and for all the work you have done with me and with this Subcommittee. I want to thank you and your staff as well as my staff 

and the staff for Senator Johnson and other staffs that have 

worked with us from other Members, as well, to carry on the work 

that we needed to do in these areas. 

As I stated earlier, it has been a great honor for me to serve as 

Chairman of this Subcommittee and I hope that some of the things 

we have accomplished together have helped to move our government and our country forward. 

I also want to encourage our witnesses, along with future Members of this Subcommittee, to continue to work together so that the 

Federal Government can be the employer of choice in our country. 

The hearing record will remain open for 2 weeks for Members to 

submit any additional statements or questions. 

And again, I want to wish you all well in your work. I know the 

future is exciting and we need to continue to do the best we can 

for the workers of our country because they are the ones that deliver and produce what the country needs and we need to take care 

of them and get the best that we can in our country, and so we 

can continue to work on this together. 
32 

Again, I want to wish all of you well in all that you do. Thank 

you again. Mahalo nui nui loa. Again, God bless you folks and our 

great country and its future. 

This hearing is now adjourned. 

[Whereupon, at 4:34 p.m., the Subcommittee was adjourned.] 
(33) 

A P P E N D I X 

FOR IMMEDIATE RELEASE: September 19,2012 

Contact: Jesse Broder Van Dyke 202-224-7045 

jesse broder, und,Kca'akaka.senatc.'!(l\ 

STATEMENT OF CHAIRMAN DANIEL K. AKAKA 

Investing in an Effective Federal Workforce 

Hearing 

Subcommittee on Oversight of Government Management, 

the Federal Workforce, and the District of Columbia, 

Senate Committee on Homeland Security and Governmental Affairs 

Aloha and thank you all for being here today as the Subcommittee examines a number of issues 

that are vitally important to our Federal workforce. We will discuss the progress that has been 

made on many issues and the steps we must take to make sure the Federal government is 

effective and efficient now and for future generations. 

The Federal government is facing some of the most complex challenges in our nation's historyand doing it with serious budget constraints. To do more with less, it is more important than ever 

that we have a first-class workforce. The government must make the proper investments in its 

employees and take the steps necessary to recruit, retain, and develop its talent. 

The media often focuses on what goes wrong in government, but today I want to take a moment 

to recognize the important work of two million civil servants who provide essential services to 

the American people. The tragic deaths of Ambassador Stevens and three other civil servants 

remind us of the sacrifices public servants make on our behalf - unfortunately, occasionally, the 

ultimate sacrifice. 

Over the years, I have met and worked with so many inspiring men and women, who work hard 

every day to serve this country. Our country is stronger thanks to their service and it has truly 

been my privilege to support them and move our government forward. 

I am pleased that we have made progress in a number of areas that have bcen priorities for me 

and for this Subcommittee, including enacting and implementing the Non-foreign Area 

Retirement Equity Assurance Act and the Telework Enhancement Act as well as making 

important strides in reforming the Federal hiring and security clearance processes. We are also 

doing a better job matching federal employment opportunities to the important skills of veterans 

and people with disabilities, and in making sure all employees get the training they need to help 

agencies meet critical missions. But there is more work to be done. 

As many of you know, I will be retiring at the end of this year and this will be my last hearing as 

Chairman of this Subcommittee. It has been a great honor for me to serve as Chairman of this 

Subcommittee, and work on issues that - although they may not always make headlines - are 

crucial to improving the lives of our citizens. 
34 

Throughout my career in Congress, I have used the spirit of aloha to get things done. In Hawaii. 

the Aloha Spirit is the feeling that we need to bring people together and solve problems. I may 

not always have the same priorities or perspectives as my Republican counterparts, but I always 

try to look for common ground. Recently, I have been working closely with Representative Issa 

to pass the Whistleblower Protection Enhancement Act, which has been a priority for me for 

years, before Congress adjourns. 

Over the years. I have often said that I believe that the Federal government, as the nation's 

largest employer, has a responsibility to lead by example, to be a model employer. It is my hope 

that the work of this Subcommittee has moved us toward that goal. 

I have been so privileged to work closely with the witnesses here today to address the needs of 

our country and the Federal workforce. Today we have two panels of star witnesses including 

some of the most dedicated, effective leaders on federal workforce issues. J know each of you 

cares deeply about our nation and these issues, and I want to thank you for being here today and 

for the work you do every day to improve our government and our workforce. I look forward to 

your testimony. 

-END-
35 

Statement of Senator Ron Johnson 

"Investing in an Effective Federal Workforce" 

Subcommittee on Oversight of Government Management, 

the Federal Workforce, and the District of Columbia 

Committee on Homeland Security and Governmental Affairs 

September 19,2012 

**** 

Mr. Chairman. thank you for holding this oversight hearing on Investing in an Effective 

Workforce. 

Today is a memorable day for Senator Akaka, and for me. because it is the last time I will have 

the privilege of serving with him on this Subcommittee before he retires. In the Aloha spirit that 

you have brought to your work in the Senate and to this subcommittee. I would like to start this 

hearing by presenting you this lei as a sign of my appreciation and respect for your service to 

America. 

When I started in the U.S. Senate less than two years ago. Senator Akaka gave me a warm and 

friendly welcome to the Homeland Security and Governmental Affairs Committee. His cheerful 

smile. encouraging attitude. and genuine desire to make a difference has been a hallmark of his 

many years of service. The affection we all have for Senator Akaka is heartfelt and well 

deserved. 

During my time here. [ have always enjoyed joining Senator Akaka at the Senate's Wednesday 

morning prayer breakfasts. Many of you may not know this, but Chairman Akaka started the 

tradition of singing a hymn at the beginning of every prayer breakfast. Everyone in attendance 

always looks forward to Senator Akaka's explanation of the hymn's history, and hearing his fine 

voice lead us in singing. Your presence at the weekly prayer breakfast will be sorely missed. 

Senator Akaka has demonstrated his commitment to public service throughout his life. His entry 

into public service began during World War 11, where he served in active duty in the U.S. Army. 

From there, Senator Akaka continued his service in the State of Hawaii Department of Education 

before first being elected to the U.S. House of Representatives in 1976. Today. 36 years later. it 

is clear to see the countless contributions that Senator Akaka has made during his many years of 

service. 

As one of the longest serving senators currently in the Senate. Senator Akaka has forged many 

friendships, including with a number of U.S. Presidents. He has served with every President 

since Jimmy Carter and maintained friendships with many of them. Senator Akaka has strong 

ties across the aisle. from his common bond with President H.W. Bush as World War II veterans 

to playing many rounds of golf with President Clinton. 
36 

As Chairman of the Subcommittee on Oversight of Government Management. the Federal 

Workforce, and the District of Columbia, it has been his goal to attract, retain, and motivate a 

skilled federal workforce. J applaud the work Senator Akaka has done to ensure that federal 

employees are protected from retaliation when they disclose government waste. fraud, and abuse. 

Senator Akaka has also worked hard to ensure that the Federal government process retirement 

claims in a timely and efficient manner. He has advocated for the modernization of the 

infonnation technology infrastructure to achieve this goal. These are common sense 

advancements that are good for the federal workforce. and good for the American taxpayer. 

It is Senator Akaka's "Aloha Spirit" that has earned him the recognition of many organizations. 

Time will not allow me to name every 3\vard that he has received, but I would like to mention 

just a few. 

In 1999 he received the Adam Smith Medal from the National Council on Economic Education 

for his work in improving our youth's education on economic principles. 

In 2008. he received the Inspirational Leadership Award from the Military Order of the Purple 

Heart for his dedication to our Nation's veterans. 

And in 2011 he received the Public Servant Award from the Government Accountability Project 

for his work in protecting the rights of whistleblowers. 

Senator Akaka. all too often, the public spotlight is on the differences between members of 

Congress, but your record in Congress points to a different reality. Your tireless efforts to 

streamline federal processes and make agencies more accountable have always found broad 

bipartisan support. The Aloha spirit has worked. 

Senator Akaka, I know you wilt be missed by all of your colleagues in Congress. every staff 

member, and everyone who has had the pleasure of working with you here in Washington and 

throughout America during your dedicated years of service. In particular. I wilt miss you. 

During our short time of service together, you have been most kind and gracious to me. and I 

will always consider you my friend. 

I know you are looking forward to spending more time with your family, including your 15 

grandchildren and 15 great-grandchildren. I cannot think ofa more fitting, satisfying. and well 

deserved retirement. I would like to extend my appreciation and congratulations to you and your 

family, and I wish you all the best in the years ahead. Aloha. 

I would also like to welcome our witnesses, and thank them for being here today. I look forward 

to hearing your testimony and how we can continue to implement and improve upon many of the 

refonns that Chainnan Akaka has worked so tirelessly on. Thank you. 
37 

L,\ITED STATES OFFICE OF PERSO"i:'lEL \lA;\AGE'VIE'\T 

STATEMENT OF 

JOHN BERRY 

DIRECTOR 

U.S. OFFICE OF PERSONNEL MANAGEMENT 

before the 

SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT MANAGEMENT, THE 

FEDERAL WORKFORCE AND THE DISTRICT OF COLUMBIA 

UNITED STATES SENATE 

on 

"Investing in an Effective Federal Workforce" 

Chairman Akaka, Ranking Member Johnson. and Members of the Subcommittee. 

Thank you for the opportunity to be here today to discuss the state of the Federal workforce. First 

and foremost, Mr. Chairman. I want to express my admiration and appreciation for your 36 

distinguished years of service in the United States Congress. I especially want to thank you for 

your efforts throughout your career - and especially in your capacity as the Chairman of this 

Subcommittee - to be a champion for Fcderal employees. retirees. and their families. 

The Federal workforce has been fortunate to have such a forward thinking advocate on its side. 

Your efforts and priorities have closely aligned with those of the Administration and have led the 

way to important changes in the Federal employment experience. 

Some important efforts by this Administration, which were championed by you, include the 

following: 

• The President has issued a Presidential Memorandum improving the Federal recruitment 

and hiring process. Hiring reform has long been an issue of importance to you, and 1 am 

happy to say that this Administration has helped to make your vision a reality. 

• The President has signed Executive Orders improving pathways for students and recent 

graduates to gain access to Federal employment. increasing (to the highest percentage in 

twenty years) the number of veterans and those with disabilities who were hired by the 
38 

Statement of Honorable John Berry 

Director 

U.S. Office of Personnel Management 

September 19,2012 

Federal government, and increasing overall diversity and inclusion in Federal hiring. 

Your leadership has been crucial in this effort. 

• The President has signed an Executive Order, in line with your priorities, creating the 

National Council on Federal-Labor Management Relations (the Council). The Council 

exists to advise the President on matters involving labor-management relations in the 

executive branch, support the creation of labor-management forums at the department 

and agency level, and promote partnership between labor and management in the 

executive branch. 

• The President has issued two memoranda on same-sex domestic partners benefits that 

direct agencies to extend benefits to same-sex domestic partners of Federal employees 

whenever legally possible. As a result, we have changed regulations and policies at the 

Office of Personnel Management (OPM). 

• OPM has implemented legislation passed by Congress and championed by you to 

implement telcwork government-wide in order to maximize flexible work arrangements, 

to aid in recruiting the next generation of Federal workers, and to allow agencies to 

maintain productivity in situations involving national security and other emergencies. 

• OPM has led the effort to provide training, benefits, and work-life balance necessary for 

Federal employees to succeed, prosper, and advance in their careers. OPM also works to 

ensure the Federal workforce and its leaders are fully accountable, fairly appraised, and 

have the tools, systems, and resources to perform at the highest levels to achieve superior 

results. 

• OPM has worked with the Department of Defense (DOD), the Ottice of the Director of 

National Intelligence, and the Office of Management and Budget to continue your efforts 

and reform the security clearance and investigation process to improve the etticiency and 

effectiveness of the program. These efforts have led to DO~'s Personnel Security 

Clearance Program being removed from the Government Accountability Ottice's (GAO) 

"high-risk" list. 

• OPM has worked through and with the Chief Human Capital Otticers (CHCO) Council 

to help select, develop, train, and manage a high-quality, productive workforce. The 

CHCO CounciL which you helped create, improves government-wide etticiency by 

pooling advice and facilitating coordination of the activities of members' agencies on 

such matters as the modernization of human resources systems and improving the quality 

of human resources information. OPM is also working with the CHCO Council to 

address closing critical skill gaps across the Federal government. 

• OPM has built strategic partnerships with agencies and groups representing diverse 

popUlations of Federal employees, such as affinity groups and the unions, and provided 

them with financial education programs focused on helping employees understand the 

importance of savings and retirement planning. Mr. Chairman, you have been a leader in 
39 

Statement of Honorable John Berry 

Director 

U.S. Office of Personnel Management 

September 19,2012 

highlighting financial literacy among Federal employees. and OPM has enjoyed working 

with you on these efforts. 

It has been a distinct honor and privilege to witness your leadership on all of these issues and to 

work with you and your slaffto modernize the management of the Federal workforce and to 

empower Federal employees. Your legacy includes helping to make the Federal government the 

model employer for the 21 st Century. and your service will be greatly missed. 

I would like to further discuss a few areas where significant progress has been made by this 

Administration to achieve the OPM's mission to recruit. retain. and honor a world-class 

workforce to serve America. 

Hiring the Best 

Achieving a world-class workforce depends on the ability to recruit and hire the most talented 

and diverse workforce possible. The leadership of this Subcommittee has been crucial in 

supporting the modernization of the Federal hiring process. and I would like to especially thank 

you, Mr. Chairman, for your efforts to highlight the need for refoon. On May II, 20 I O. President 

Obama issued a memorandum which directed agency heads to take specific actions to improve 

recruiting and hiring in order to bring the best and brightest into the Federal civilian workforce. 

Among other things. we have eliminated requirements that applicants answer essay-style 

questions as part of their initial application for a Federal job. in favor of a streamlined approach 

of requiring resumes and cover letters. This change eliminated an unnecessary barrier in 

encouraging individuals to apply for Federal employment. 

In addition, OPM developed a resumc-based selection method to hire career appointees to 

positions in the Senior Executive Service (SES). This resume-based method streamlines the 

recruitment process and provides a more applicant-friendly experience. Agencies have reported 

to OPM that this new method has helped increase their applicant pools for executive hiring and. 

when combined with other strategic recruitment and marketing strategies. has helped agencies 

hire highly-qualified executives. 

OPM has strengthened the accountability of managers and hiring officials for the hiring process. 

by increasing their input in workforce planning. recruitment. and interviewing and by evaluating 

managers on the quality and successful transition of their hires. Agencies are also continuing to 

make progress in reducing the timc to hire so that we do not lose good people who want to work 

for America. The time it takes to hire an applicant has decreased by almost 11 percent (10.66 

percent) government-wide, going from an average of 122 days in 2009 to 109 days today. In 

addition to reducing time to hire, agencies have improved the integrity and validity of their data. 

\;I\.i 
40 

Statement of Honorable John Berry 

Director 

U.S. Office of Personnel Management 

September 19,2012 

I am also happy to report that the USAJOBS website is experiencing continual and increasing 

customer satisfaction I. Since the launch of USAJOBS 3.0 last October. 17.09 million 

applications have been submitted via the USAJOBS website. OPM continues to interact with 

USAJOBS applicants both through our agency's Help Desk and social media such as Twitter. 

Facebook and Y ouTube. We continue to improve and enhance the USAJOBS website based on 

customer feedback and look forward to continued success. 

In further efforts to modernize the Federal hiring process, on December 27, 20 I 0, President 

Obama signed an Executive Order outlining the Pathways Programs. which is designed to 

improve recruitment of students and recent graduates and opportunities for them to enter the 

Federal workforce. The final rule implementing the Pathways Programs has been published and 

took effect on July 10. 2012. We are very excited about the future of the Pathways Programs and 

look forward to their success. 

Chairman Akaka. as a veteran yourself, you have long been a champion for expanding the 

opportunities for our men and women in uniform to be able to continue to serve their country 

after their military service ends. In November 2009, President Obama signed Executive Order 

13518 launching the Veterans Employment Initiative. The order created the Council on Veterans 

Employment to advise and assist the President in improving employment opportunities for 

veterans in the Federal government. One key action required by the order was the establishment 

ofa Veterans Employment Program Office within each of the 24 agencies represented on the 

Council. The mission of each of these offices is to provide assistance to veterans and their family 

members who seek information on employment in the Federal government. Thanks to these 

efforts, in FY J I veterans were 28.3 percent of total new hires in the Federal government, an 

improvement of approximately 2.7 percentage points over FY I 0 and 4.3 percent over FY09 and 

the highest percentage in over 20 years. 

This Administration has also made the promotion of diversity and inclusion in the Federal 

workforce an important priority, and the early results of those efforts are positive, although there 

is still more work to do. For example, 14.7 percent of all new hires in the Federal workforce in 

FYll were individuals with disabilities. During the same fiscal year, the number of minorities in 

the Federal workforce increased by 2.4 percent. While we have made great strides in increasing 

the hiring of veterans and those with disabilities and increasing diversity in the Federal 

workforce, we will continue to ensure that these hiring enorts remain a government-wide focus. 

Your leadership and guidance have been critical in helping OPM overcome significant 

challenges associated with ensuring agencies have the information necessary to make decisions 

I Average Job Seeker satisfaction scores have stayed at a "70" composite approval score or above since March. and 

averaged highs of "'73" and "74" composite approval scores in August and September. respective!;. 
41 

Statement of Honorable John Berry 

Director 

U.S. Office of Personnel Management 

September 19, 2012 

regarding suitability and security clearance determinations for their employees. With your 

support, OPM took over the background investigative program for the Department of Defense 

and eliminated their significant backlog. In addition to eliminating their backlog, OPM continued 

to improve the quality of background investigations while meeting demanding timeliness goals 

mandated by the Intelligence Reform and Terrorism Prevention Act of2004. The governmentwide positive impacts are significant. The improved background investigative timeliness 

standards resulted in billions of dollars of previously lost productivity being returned to the 

Federal government and DOD's Personnel Security Clearance Program's removal from GAO's 

"high-risk" list. 

Finally. OPM recognizes the need to address critical skills gaps. OPM partners with agencies to 

address critical skill shortages through government-wide and agency-specific recruitment. 

retention and measurement strategies. OPM conducts routine data analysis to identify emerging 

skill gaps and agency progress toward meeting gap closure targets. OPM has the lead 

responsibility for meeting the Office of Management and Budget's Cross Agency Priority Goal 

to close critical skills gaps. In April of this year, OPM completed, in partnership with the CHCO 

Council, a rigorous data analysis process to identify five high-priority government-wide 

occupations for gap closure: IT, HR, Acquisition, Financial Auditors, and Economists, in 

addition to Science, Technology, Engineering and Mathematics (commonly referred to as 

'STEM'), as a functional area. OPM is now partnering with relevant interagency councils and 

working groups to design the most effective strategies to close gaps in these occupations. with 

the goal of closing 50 percent of skills gaps by the end of FY 13. 

In addition, Mr. Chairman, in line with your interest in the matter, OPM has begun an initiative 

to inventory the foreign language skills of the Federal workforce. Our goal is to ensure agencies 

can collect this information effectively, while enabling OPM to provide a coordinated response 

in the event of an emergency. 

Respect for the Workforce 

Mr. Chainnan, our people are our greatest asset. To have a government that delivers the best 

services to the taxpayers in the most efficient way possible, we need to provide them the training. 

benefits, and work-life balance necessary to succeed, prosper, and advance in their careers. OPM 

has been able to accomplish many of our goals in respecting the workforce, with the assistance 

of the C!lCO Council, which you helped create. OPM and the CHCO Council work best when 

they work closely together, and that's what we've done -laid out complementary agendas, 

pursued them together. and shown that we can accomplish big things. 

I know improving training opportunities for Federal employees has been a priority for you. With 

your encouragement, we now require all supervisors to receive training within I year of their 

appointment and refresher training at least every 3 years. 
42 

Statement of Honorable John Berry 

Director 

U.S. Office of Personnel Management 

September 19,2012 

Also, as I testified in May of this year, part of the recent effort to work with human resources 

professionals has been the creation of the HR University (HRG) website. which provides an 

excellent foundation for human resources professionals to get training to help them do their jobs 

even better. I was happy to launch this endeavor with the full support of the CHCO Council. and 

I was particularly grateful for the specific assistance and tools we received in standing up the 

HRU website fTom DOD. the Department of the Treasury. the Office of the Director of National 

Intelligence. and NASA. The courses offered through HRU are a combination of classroom and 

online courses and are offered across the government. HRU's course catalog, which is approved 

by OPM, continues to grow. and we recently added college-level courses on human resources 

management. 

HRU presents a savings to the Federal government. These savings arc realized through the 

sharing of resources and economies of scale by reducing duplicative courses across the 

government. identifying the best human resources training, and by sharing these resources 

through HRU. Today. the cost savings figure is about $18.6 million. 

Mr. Chairman, J know mentoring has been an area of importance to you. and I would like to 

highlight a few efforts OPM has taken in this area. OPM is building on our successful human 

resources mentoring program by partnering with agencies to develop "HR Mentorship Clusters." 

These clusters will join large agencies with small agencies that share common mission and 

workforce characteristics. These mentorship clusters will enable human resources profcssionals 

from large agencies to mentor small agency human resources professionals who often do not 

have the resources needed to obtain outside support. These clusters will serve as a "big 

brother/big sister" type of mechanism to help human resources professionals develop lifelong 

partnerships with their colleagues and provide mentorship, coaching. and best practices. Another 

important tool we are developing is a government-wide mentoring "hub:' which will afford 

Federal agencies a onc-stop shop for their mentoring needs. The "hub" will be a resource to all 

federal agencies, regardless of whether they have their own mentoring programs. It will provide 

tools, techniques, tips. and tcchnical assistance relating to mcntoring. The mentoring "hub" will 

promote a knowledge-sharing culture government-wide. ensuring that information is shared and 

retained within each agency and across the Federal government. 

Mr. Chairman. J want to thank you for your support for the 28 Federal Executive Boards (FEBs) 

across the nation. The FEBs respond to member agency needs by providing coordinated, quality 

programs and activities. training being one focus area. By leveraging a large number of agency 

participants, FEBs are able to offer training sessions at little or no cost. They reduce costs even 

more by local delivery, negating the need for travel and lodging. In 2011, FEBs provided training 

opportunities to 33,499 Federal employees at an estimated cost avoidance to the Federal 

government of more than $8.7 million. And in 2010 and 2011, FEBs supported President 

\'\\«,\jl\'i 
43 

Statement of Honorable John Berry 

Director 

U.S. Office of Personnel Management 

September 19,2012 

Obama's priority to improve the Federal hiring process by hosting a total of 153 training and 

briefing sessions on hiring reform for human resources specialists and hiring managers. 

Mr. Chairman. I also know you have offered legislation addressing the relationship between 

management and labor. In seeking to improve this relationship, President Obama issued 

Executive Order 13522 to create a new era of collaboration and partnership between the Federal 

government and unions representing Federal employees. The Administration believes that a 

strong partnership between the Federal government and labor organizations in the civil service is 

in the public interest and promotes efficiency. The National Council on Federal LaborManagement Relations (the National Council) shares President Obama's belief that Federal 

employees are the Federal government's greatest asset and resource for ideas that will ensure the 

delivery of high-quality and cost-effective service to the American people. We are committed to 

the President's mission of establishing cooperative and productive labor-management relations 

throughout the Federal government. The National Counei I has supported the creation of agencylevel labor-management forums, and implementation plans for all 51 participating agencies have 

been certified and approved by the National Council. To date, at least 769 forums have been 

established, covering approximately 770.000 (approximately 65 percent) of the bargaining unit 

employees employed by the 51 agencies. 

From our surveys of agency forums, agencies have reported the following early successes during 

implementation: 

• Development of joint baseline assessments of labor-management relations and metrics: 

• Improved labor-management communication; 

• Reduction in the number of formal negotiations; 

• Reduction in the time to negotiate a collective bargaining agreement; and 

• Progress toward or resolution of issues related to matters such as 

o Agency performance management systems; 

o Work space issues and reorganizations; and 

o Telework and other work-life programs. 

Additionally. Federal agencies offer work life programs that promote a healthy. more resilient 

employee. Some programs include: 

• Resource and referral programs for employees (and often eligible family members) 

• Child Care Subsidy Programs 

• Employee Assistance Programs 

• Health and Well ness Programs 

• Alternative Work Schedules 

• Flexible Work Schedules 
44 

GAO 

For Release on Delivery 

Expected at 2:!lOp.m. EDT 

Wednesday, September 19, 2012 

GAO-12-1023T 

United States Government Acconntability Office 

Testimony 

Before the Subcommittee on Oversight of 

Government Management, the Federal 

Workforce, and the District of Columbia, 

Committee on Homeland Security and 

Governmental Affairs, U.S. Senate 

HUMAN CAPITAL 

MANAGEMENT 

Effectively Implementing 

Reforms and Closing 

Critical Skills Gaps Are Key 

to Addressing Federal 

Workforce Challenges 

Statement of Gene L. Dodaro 

Comptroller General of the United States 

GAO 

Accountability '" Integrity * Reliability 
45 

Highlights ofGAO-12-1023T, a testimony 

before the Subcommittee on Oversight of 

Govemment Management, the Federal 

Workforce and the District of Columbia, 

Committee on Homeland Security and 

Govemmental Affairs, U.S. Senate 

Why GAO Did This Study 

GAO designated strategic human 

capital management as a governmentwide high risk area in 2001 because of 

a long-standing lack of leadership. 

Since then, important progress has 

been made. However, the area 

remains high risk because of a need to 

address current and emerging critical 

skills gaps that undermine agencies' 

abilities to meet their vital missions. 

The federal government is facing 

evolving and crosscutting challenges 

that require a range of skills and 

competencies to address. Moreover, 

retirements and the potential loss of 

leadership and institutional knowledge, 

coupled with fiscal pressures, 

underscore the importance of a 

strategic and efficient approach to 

acquiring and retaining individuals with 

needed critical skills. 

This testimony is based on a large 

body of GAO worn from January 2001 

through September 2012 and focuses 

on the progress made by executive 

branch agencies, the CHCO Council, 

and OPM, and the challenges that 

remain in four key areas of human 

capital management: (1) leadership; 

(2) strategic human capital planning; 

(3) talent management; and (4) resuHsoriented organizational culture. 

What GAO Recommends 

Over the years, GAO has made 

numerous recommendations to 

agencies and OPM to improve their 

strategiC human capital management 

efforts. This testimony discusses 

agencies' actions to implement key 

recommendations. 

View GAO-12-1023T. For more infonnation, 

contact Robert N. Goldenkoff at (202) 512-

6806 or gofdenkoffr@gao.gov or Yvonne O. 

Jones at (202) 512-6806 or jonesy@gao.gov< 

W,l@MdP*NF 

HUMAN CAPITAL MANAGEMENT 

Effectively Implementing Reforms and Closing 

Critical Skills Gaps Are Key to Addressing Federal 

Workforce Challenges 

What GAO Found 

Since 2001, Congress, the Office of Personnel Management (OPM), and 

executive branch agencies have taken action to address the government's 

human capital challenges. For example, in 2002, Congress passed legislation 

creating the CHCO Council, composed of the Chief Human Capital Officers 

(CHCO) of 24 executive agencies and chaired by the Director of OPM. In 2004. 

through the Federal Workforce Flexibility Act, Congress provided agencies 

greater hiring flexibilities. OPM issued guidance on hiring reforms, developed the 

Hiring Toolkit, and launched an 80-day model to speed the hiring process. 

Leadership: 

The CHCO Council advises and coordinates the activities of member agencies 

on current and emerging personnel issues. Among its recent initiatives, OPM and 

the CHCO Council established a working group in Septernber 2011 to identify 

and mitigate critical Skills gaps. To date the group has taken important steps, 

including developing a framework and timeline for identifying and addressing 

government-wide and agency-specific skills gaps. However, the substantive work 

of addressing skills gaps remains, including defining workforce plans, 

implementing recruitment and retention strategies, and measuring the effects of 

these initiatives. 

Strategic human capital planning: 

Integrating human capital planning with broader organizational strategiC planning 

is essential for ensuring that agencies have the talent and skill mix needed to 

cost-effectively execute their mission and program goals. If not carefully 

managed, anticipated retirements could cause skills gaps to develop further and 

adversely impact the ability of agencies to carry out their diverse responsibilities. 

GAO's work has identified skills shortages in areas government-wide, such as 

cybersecurity. acquisition management, and foreign language capabilities. 

Talent management: 

Ensuring that federal agencies are able to recruit, develop, and retain personnel 

with the necessary skills is essential to closing any skllls gaps and maintaining a 

workforce that will meet its vital missions, Congress, OPM, and some individual 

agencies have taken important actions, such as providing and using flexibilities. 

to improve the hiring process and making investments in training and 

development. However. much work remains. For example, GAO recently 

reported that OPM can improve its guidance and assistance to agencies in 

establishing a process for setting and prioritizing training investments. 

Results-oriented organizational culture: 

Leading organizations have found that to successfully transform themselves they 

must often fundamentally change their cultures to be more results-oriented, 

customer-focused, and collaborative. As part of that, GAO has shown that 

agencies need to create clear "lines of sight" that align organizational and 

individual performance. These lines of sight help individual staff understand the 

connection between their daily activities and agency success. 

_____________ United States Government Accountability Office 
46 

AGAO < A,ccountablllty"'lt~grlty"R(>llabmty 

United States Government Accountability Office 

Washington, DC 20548 

Chairman Akaka, Ranking Member Johnson, and Members of the 

Subcommittee, 

Thank you for the opportunity to be here this afternoon to discuss the 

state of the federal workforce, My remarks today will focus on the 

progress made in modernizing federal human capital policies and 

procedures since 2001, the year in which we first added strategic human 

capital management to our list of high risk areas because of the longstanding lack of leadership on personnel matters, 1 

Mr, Chairman, today's session is a fitting venue to discuss the progress of 

civil service reforms because so many of the improvements in the federal 

government's human capital policies and practices came about as a 

result of the bipartisan leadership and vision of this Subcommittee 

including legislation, hearings, constructive oversight, requests for our 

research, and efforts to hold agencies accountable for results, 

Congress, the Office of Personnel Management (OPM), and individual 

agencies have all made substantial progress in addressing their human 

capital challenges, For example, Congress, in 2002, created the chief 

human capital officer (CHCO) position in 24 agencies to advise and assist 

the head of the agency and other agency officials in their strategic human 

capital efforts, 2 The CHCO Council-chaired by the OPM Directoradvises and coordinates the activities of members' agencies, OPM, and 

the Office of Management and Sudget (OMS) on such matters as 

modernizing human resources systems and improving the quality of 

human resources information, Further, in 2002 and 2004, Congress 

provided agencies-individually and across the federal government-with 

additional authorities and fiexibilities to manage the federal workforce 

such as the authority to offer recruitment bonuses, More recently, 

Congress enacted the Telework Enhancement Act of 201 0, which is 

intended to provide opportunities for more federal employees to telework, 

It is important that the government have a top-notch workforce, 

Addressing challenges in areas such as disaster response, homeland 

1GAO, HighMRisk Series: An Update, GAO-01·263 (Washington. 0 C .. Jan. 2001), 

2Chief Human Capital Officers Act of 2002, Title XIII of the Homeland Security Act of 

2002, Pub, L No, 107,296 (Nov, 25, 2002), 

Page 1 GAO,12,1023T 
47 

security, economic security, and many other evolving issues requires 

networks of actors across many organizations employing a wide range of 

expertise and skills, For federal agencies to be effective in this 

environment, they must have the capacity to work seamlessly with other 

agencies, levels of government, and across sectors, 

While the government has taken on additional roles and responsibilities in 

recent years, the size of the federal workforce has changed little since 

1981, While there have been some fiuctuations, overall the number of 

federal employees has remained relatively steady at around 2 million 

people, with 2.2 million civilian, non-postal employees in 2011, That said, 

the federal workforce is supported by a large number of contract 

employees who also need to have the right set of skills, Although the 

exact size of the contractor workforce is difficult to measure, at some 

agencies it is significant and can far exceed the number of federal 

personnel. For example, as we pOinted out in our April 2012 report, the 

National Nuclear Security Administration-a component of the 

Department of Energy responsible for ensuring the safety and security of 

the nation's nuclear weapons stockpile-is composed of about 34,000 

contractors and 2,400 federal employees,3 

These evolving and complex challenges are occurring while agencies 

confront an array of internal management capacity difficulties, such as 

critical skills shortages, ongoing retirements that could lead to a further 

loss of institutional knowledge, as well as fiscal pressures' As a result, it 

is vital that agencies operate more strategically and efficiently than ever 

before, 

The challenges confronting government demand that federal agencies 

follow high-performing organizations' human capital management 

practices including recruiting and retaining employees able to create, 

sustain, and thrive in organizations that are fiatter, results-oriented, and 

externally focused; and collaborate with other entities across levels of 

government and with the private and non-profit sectors, 

3GAO, Modernizing the Nuclear Secunty Enterprise: Strategies and Challenges in 

Sustaining Critical Sklfls in Federal and Contractor Workforces GAO-12-468 (Washington, 

D,C" April 26, 2012) 

4For more on the management capacity issues confronting agencies. see GAO-11-278 

Page 2 GAO·12·1023T 
48 

Sustained Leadership 

is Essential to 

Successful Human 

Capital Management 

As requested, my remarks today will focus on executive branch agencies' 

and OPM's progress in addressing key aspects of strategic human capital 

management including: (1) leadership commitment; (2) strategic human 

capital planning; (3) talent management; and (4) building a resultsoriented culture. This testimony is based on a large body of our 

completed work issued from January 2001 through September 2012, and 

also includes the preliminary results of an ongoing study that you 

requested on addressing critical skills gaps. The work on which this 

statement is based was conducted in accordance with generally accepted 

government auditing standards. Those standards require that we plan 

and perform the audit to obtain sufficient, appropriate evidence to provide 

a reasonable basis for our findings and conclusions based on our audit 

objectives. We believe that the evidence obtained provides a reasonable 

basis for our findings and conclusions based on our audit objectives. 

Effective leadership is the key driver of successful human capital 

management. Simply put, the tone starts from the top. As one example, in 

September 2011, OPM and the CHCO Council, as part of ongoing 

discussions between OPM, OMB. and us on progress needed to address 

the federal government's human capital high risk area, established a 

working group to identify and mitigate critical skills gaps. At the request of 

this Subcommittee, we are reviewing the progress of the working group. 

Our preliminary findings show that the working group has, to date, taken 

some important steps forward, including developing a framework and 

timeline for identifying and addressing both government-wide and 

agency-specific skills gaps. 

Importantly. the effort is receiving the commitment and support of agency 

leadership. For example, agencies' chief human capital officers and their 

representatives were involved in forming the working group and 

participated in its deliberations. Further, the working group's efforts were 

designated a cross-agency priority goal within the Administration's fiscal 

year 2013 federal budget. 5 The working group expects to complete its 

initial efforts in March 2013. We will continue to assess the working 

group's progress and antiCipate issuing a report to you later this year. 

5GAO, Managing for Results: GAO's Work Related to the Interim Crosscutting Priority 

Goals under the GPRA Modernization Act, GAO~ 12-620R (Washington, D,C,: 

May 31,2012). 

Page 3 GAO·12·1023T 
49 

Strategic Human 

Capital Planning is 

Critical to Addressing 

Workforce Challenges 

In addition, OPM has demonstrated leadership in its efforts to improve the 

hiring process, with an eye toward making it easier and faster for people 

to apply for a federal job and strengthen the ability of agencies to 

compete with the private sector for filling entry-level positions. For 

example, OPM issued final regulations implementing the Pathways 

Programs (Pathways) which took effect on July 10, 2012.6 Pathways 

created two new conduits into government service: the Internship 

Program for students currently in high school. college, and other 

qualifying programs, and the Recent Graduates Program for individuals 

who, within the previous two years, earned an associate, bachelors, 

masters, professional or other qualifying degree or certificate. Pathways 

also modified the existing Presidential Management Fellows Program 

making it more student friendly by, among other changes, expanding the 

eligibility window for applicants. Individuals in all three programs are 

eligible for noncompetitive conversion to permanent positions after 

meeting certain requirements. If successfully implemented, initiatives 

such as the CHCO working group and Pathways could help agencies 

identify and close critical skills gaps. 

Still, work is needed in other human capital areas. For example, as we 

noted in our February 2012 testimony before this Subcommittee, OPM 

needs to improve the paper-intensive processes and antiquated 

information systems it uses to support the retirement of civilian federal 

employees in part because of the volume of retirement processing 

expected in the coming years given projected retirement trends. 7 

Strategic human capital planning that is integrated with broader 

organizational strategic planning is essential for ensurIng that agencies 

have the talent, skill, and experience mix they need to cost-effectively 

execute their mission and program goals. Workforce planning is 

especially important now because, as shown in figure 1, agencies are 

facing a wave of potential retirements. Government-wide, around 30 

677 Fed. Reg 28194 (May 11. 2012). The Pathways Programs were established by the 

President under Exec Order No, 13562, Recruiting and Hiring Students and Recent 

Graduates. 75 Fed, Reg. 82585 (Dec. 27. 2010). Under the executive order, OPM was 

tasked with issuing Implementing regulations 

7GAO. OPM Retirement Modernization: Progress Has Been Hindered by Longstanding 

Information Technology Management Weaknesses, GAO-12·430T (Washington, D.C .. 

Feb. 1.2012). 

Page 4 
50 

percent of federal employees on board at the end of fiscal year 2011 will 

become eligible to retire by 2016. 8 At some agencies, however, such as 

the Department of Housing and Urban Development and the Small 

Business Administration, at least 40 percent of those on board at the end 

of fiscal year 2011 are already eligible or will become eligible to retire in 

the next five years. The government's top leadership and management 

ranks also face potentially high levels of retirement. About 58 percent of 

senior executives and 45 percent of GS-15s who were on board at the 

end of fiscal year 2011 will be eligible to retire by 2016. Likewise, certain 

occupations face the potential of large numbers of retirements. Around 46 

percent of air traffic controllers and 68 percent of administrative law 

judges will be eligible to retire by 2016. 

Although a number of factors affect when employees actually retire, a 

2008 OPM study found that the median number of years an employee 

stays with the government after first becoming retirement-eligible is four 

years, although nearly 25 percent remain for nine years or rnore. 9 Thus, if 

not carefully monitored and managed, as experienced employees leave, 

gaps could develop in an organization's leadership and institutional 

knowledge. 

aWe report on federal retirement eligibility usmg data from OPM's Centra! Personnel Data 

File (CPDF). To assess the reliability of CPDF data, we reviewed relevant OPM 

documentation, previous GAO reports using CPDF data. and recent OPM data quality 

assurance procedures We previously reported that government~wide data from the 

CPDF for the key variables In this report to determine retirement eligibility-retirement 

plan, service computation date, birth date. and occupation-were 98 percent or more 

accurate, Based on the results of these procedures, we believe the CPDF data used are 

sufficiently reliable for the informational purpose of this report 

90PM, An AnalysIs of Federal Employee Retirement Data: Predicting Future Retirements 

and Examining Factors Relevant to Retiring from the Federal Service (Washington, D.C· 

March. 2008) 

Page 5 
51 

Figure 1: Agencies are Facing a Retirement Wave 

Pere~~ eligible 10 retIre by 2016 

50 

.. 

.. 

,. 

Agern::y 

~ I ~ 

i! 

Strategic human capital planning will also be needed to address current 

and emerging mission critical skills shortages that exist both governmentwide across specific occupations and competencies and within particular 

agencies. Our work has shown that it is important for agencies to ensure 

that their strategic workforce planning efforts (1) involve top management. 

employees, and other stakeholders; (2) identify the critical skills and 

competencies that will be needed to achieve current and future 

programmatic results; (3) develop strategies that are tailored to address 

skills gaps; (4) build the internal capability needed to address 

administrative, training, and other requirements important to support 

PageS GAO-12-1023T 
52 

workforce planning strategies: and (5) include plans to monitor and 

evaluate the agency's progress toward meeting its human capital goals, 10 

Our work has identified issues in such government-wide areas as: 

Cybersecurity: In our November 2011 report, we found that even as 

threats to federal IT infrastructure and systems continue to grow in 

number and sophistication, federal agencies' progress in implementing 

key workforce planning practices for cybersecurity personnel has been 

mixed,11 For example, five of the eight agencies we reviewed, including 

the largest, DOD, have established cybersecurity workforce plans or other 

agency-wide activities addressing cybersecurity workforce planning, 

However, all of the agencies we reviewed faced challenges determining 

the size of their cybersecurity workforce because of variations in how 

work is defined and the lack of an occupational series specific to 

cybersecurity. We recommended, among other actions, that OPM should 

finalize and issue guidance to agencies on how to track the use and 

effectiveness of incentives for cybersecurity and other hard-to-fill 

positions. OPM agreed with this recommendation and identified steps it is 

taking to address federal agencies' use of incentives. 

Acquisition Management. Agencies such as DOD and the Department of 

Homeland Security (DHS) need to address shortages of trained 

acquisition personnel to oversee and manage contracts that have 

become more expensive and increasingly complex, The lack of skilled 

employees in this area makes the government vulnerable to overcharges 

and wasteful spending of the hundreds of billions of contract dollars it 

spends for goods and services each year. In our prior work, for example, 

we found that DOD lacked critical information to ensure its acquisition 

workforce was sufficient to meet its national security mission. 12 To 

address these issues, we recommended in 2009 that DOD, among other 

actions, identify and update, on an ongoing basis, the number and skill 

Human Capital. Key PrinCiples for Effective Workforce Pfennmg, GAO-04-39 

IWI3snlnO'lon. D.C Dec. 11,2003) 

l1GAO, Cybersecurity Human Capital: Initiatives Need Better Planning and Coordination, 

GAO-12-8(Washington, D.C Nov 29,2011). 

12GAO, Department of Defense: Additional Actions and Data Are Needed to Effectively 

Manage and Oversee DOO"s Acquisilron Workforce, GAO-09-342 (Washington, D.C, 

March 25. 2009). 

Page 7 GAO-12-1023T 
53 

sets of the total acquisition workforce, including civilian. military, and 

contractor personnel that it needs to fulfill its mission. DOD agreed with 

our recommendation and has policies in place that call for the department 

to assess its total workforce, including its contractor component. 

However, DOD has not yet determined the appropriate mix of federal 

civilian, military. and contractor personnel. We have ongoing work to 

assess DOD's civilian and acquisition workforce planning efforts. 

Likewise, in 2008, we recommended DHS take several actions to belter 

manage its acquisition workforce challenges, such as establishing a 

coordinated planning process across DHS component agencies and 

improving workforce data. 13 DHS generally agreed with our 

recommendations and has taken steps to more effectively manage and 

strategically plan for its acquisition workforce, including establishing a 

strategic human capital planning initiative to improve coordination 

between the Chief Procurement Officer, DHS components, the Chief 

Human Capital Officer, and other stakeholders to develop a Fiscal Year 

2013 Acquisition Workforce Strategic Human Capital Plan. DHS has 

begun collecting and tracking data on the department's acquisition 

workforce but not yet on the department's use of contractors for 

acquisition support. 

Foreign Language Capabilities: As we noted in our July 2010 testimony 

before this Subcommittee, DHS, DOD, and the Department of State 

(State) could better assess their foreign language needs and capabilities 

and address shortfalls." In particular, we said that foreign language skills 

are an increasingly key element to the success of diplomatic efforts; 

military, counterterrorism, law enforcement, and intelligence missions; as 

well as to access to federal programs and services for limited English 

populations. We found that the agencies we reviewed could improve their 

human capital planning efforts. For example, State's efforts to meet its 

foreign language requirements have yielded some results, but it has not 

closed persistent gaps in foreign-language proficient staff in part because 

it was not using a strategic approach. We recommended that State 

13GAO. Department of Homefand Security: A Strategic Approach fs Needed to Better 

Ensure the Acquisition Workforce Can Meet Mission Needs, GAO-09-30 (Washington, 

D.C .. Nov. 19.2008) 

HGAO, Foreign Language Capabilities: Departments of Homeland Security, Defense, and 

State Could Beller Assess Their Foreign Language Needs and Capabilities and Address 

Shortfalls, GAO-10-715T (Washington. D.C.: July 29.2010) 

Page 8 
54 

develop a comprehensive strategic plan with measurable goals, 

objectives, milestones, and feedback mechanics that links all of State's 

efforts to meet its foreign language requirements. State generally agreed 

with our recommendations and in response, in March 2011, it published a 

strategic plan for foreign language capabilities that links its language 

incentive program to its efforts to enhance its recruitment program and 

expand training, among other activities. 

Our prior work has also identified human capital planning issues at 

individual agencies. For example, the Federal Emergency Management 

Agency (FEMA) continues to face historical workforce planning and 

training challenges that need to be addressed. In our April 2012, 

assessment which we prepared for this Subcommittee and other 

requesters, we reported that FEMA is in the early stages of integrating its 

workforce planning and training efforts with initiatives underway by other 

FEMA program offices." These efforts could help FEMA ensure that it 

has a workforce of the proper size and skills to meet its mission. 

However, we also noted that FEMA's workforce planning and training 

efforts could benefit from quantifiable performance measures, such as 

metrics to gauge the agency's progress building a comprehensive 

leadership development program and integrating it with agency 

succession planning. FEMA's parent agency, DHS, concurred with our 

recommendations and is taking steps to implement them. 16 For example, 

FEMA's Strategic Human Capital Plan for fiscal years 2012 through 2016 

will have milestones and metrics for addressing key workforce planning 

efforts. 

In another example. in our July 2012 report, we found that the 

Department of the Interior continues to face workforce planning 

challenges following a reorganization effort to improve its oversight of oil 

and gas activities in the wake of the April 2010 oil spill in the Gulf of 

Mexico. In particular, we found that Interior has not developed a strategic 

workforce plan that outlines specific strategies to help it address the 

recruitment, retention, and training challenges it is facing, particularly for 

15GAO, Federal Emergency Management Agency: Workforce Planning and Training 

Could Be Enhanced by Incorporating Strategic Management Principles, GAO~ 12~487 

(Washington, D.C .. April 26, 2012) 

16GAO-12-487. 

Page 9 GAO·12·1023T 
55 

Talent Management 

Remains a Federal 

Workforce Challenge 

Hiring Reforms 

engineers and inspectors. 17 Interior has also not specifically determined 

when it will develop such a plan. To address this. we recommended that 

the relevant components of Interior develop a strategic workforce plan 

that, among other actions, determines the critical skills and competencies 

that will be needed to achieve current and future programmatic results 

and to develop strategies to address critical skills gaps. Interior agreed 

with this recommendation. 

Progress in talent management has been made on a number of fronts. 

However, our work had identified additional actions federal agencies can 

take to recruit, develop, and retain personnel with the skills essential to 

maintaining a workforce that will help agencies meet their vital missions. 

More than a decade ago, it was widely recognized that the federal hiring 

process was lengthy and cumbersome and hampered agencies' ability to 

hire the people they needed to achieve their goals and missions. The 

processes of that time failed to meet the needs of managers in filling 

positions with the right talent and also failed to meet the needs of 

applicants for a timely, efficient, transparent, and merit-based process, 

The processes were also hampered by narrow federal classification 

standards for defining federal occupations, the quality of certain applicant 

assessment tools, and time-consuming processes to evaluate applicants. 

Both Congress and OPM have taken a series of important actions over 

the years to improve recruiting and hiring in the federal sector. For 

example, in 2004 Congress provided agencies with hiring ftexibilities that 

(1) permit agencies to appoint individuals to positions through a 

streamlined hiring process where there is a severe shortage of qualified 

candidates or a critical hiring need. and (2) allow agency managers more 

latitude in selecting among qualified candidates through category rating, 

an alternative to the traditional numerical rating procedure which limited 

selection to the top three ranked candidates. In addition, Congress 

provided agencies with enhanced authority to pay recruitment bonuses 

Oil and Gas Management: Interior's Reorganization Complete, but Challenges 

Remain in fmpfementing New Requirements, GAO~ 12-423 (Washington, D.C .. July 30, 

2012). 

Page 10 GAO·12-1023T 
56 

and with the authority to credit relevant private sector experience when 

computing annual leave amounts. " 

In 2005, and again in 2008. OPM issued guidance on the use of hiring 

authorities and flexibilities, in 2006 developed the Hiring Toolkit to assist 

agency officials in determining the appropriate hiring fiexibilities to use 

given their specific situations. and in 2008 launched an 80-day hiring 

model to help speed up the hiring process. Also in 2008, OPM 

established standardized vacancy announcement templates for common 

occupations, such as contract specialist and accounting technician 

positions, in which agencies can insert summary information concerning 

their specific jobs prior to posting for public announcement. As mentioned 

earlier, in 2010, OPM launched the Pathways program in order to make it 

easier to recruit and hire students and recent graduates. 

Individual agencies have also taken actions to meet their specific needs 

for acquiring the necessary talent. For example, we have reported that 

the National Aeronautics and Space Administration has used a 

combination of techniques to recruit workers with critical skills, including 

targeted recruitment activities, educational outreach programs, improved 

compensation and benefits packages, professional development 

programs, and streamlined hiring authorities." Despite these efforts. 

many challenges remain with federal recruiting and hiring, as noted 

earlier in discussing critical skills gaps. 

Training and Development Effective training and development programs are an integral part of a 

learning environment that can enhance the federal government's ability to 

attract and retain employees with the skills and competencies needed to 

achieve results. 20 Agency training and development programs should be 

part of an overall management strategy and include processes to assess 

and ensure the training's effectiveness. Our recent work has also 

underscored the value of collaborative training. 

"Federal Workforce Flexibility Act of 2004, PUb. L. No. 108-411 (Oct 30, 2004) 

19GAO, NASA' Progress Made on Strategic Human Capita! Management, but Future 

Program Challenges Rematn, GAO-07-1004 (Washington, D,C,: Aug, 8, 2007) 

2oGAO, Human Capital: Selected Agencies' Expen'ences and Lessons Learned In 

DeSigning Training and Development Programs. GAO-04-291 (Washtngton, D.C Jan, 3D, 

2004), 

Page 11 
57 

For example, in our 2010 overview of 225 professional development 

activities intended to improve interagency collaboration at nine key 

national security agencies (including DOD, State, and DHS), we noted 

that because no single federal agency has the ability to address these 

threats alone, agencies must work together in a whole-of-govemment 

approach to protect our nation and its interests. We found that 

interagency training and other professional development activities build 

foundational knowledge, skills, and networks that are intended to improve 

collaboration across agencies. 21 For example, in fiscal year 2009, the 

military services or combatant commands led an estimated 84 jointmilitary exercise programs that addressed a range of national security 

matters and sought to improve the ability of participants to work across 

agency lines by encouraging interagency participation. In addition, DHS 

offers an introductory online course which is available to personnel across 

federal, state, and local government and provides an overview of the 

roles and responsibilities of various agencies and how they are supposed 

to work together in different emergency situations. 

Some agencies also use interagency rotations as a type of professional 

development activity that can help improve collaboration across agencies. 

For example, Army's Interagency Fellowship Program is a 10- to 12-

month rotation that places Army officers in intermediate-level positions at 

other federal agencies and allows them to learn the culture of the host 

agency, hone collaborative skills such as communication and teamwork, 

and establish networks with their civilian counterparts. In a 2012 report, 

we identified key policies and practices that help such interagency 

personnel rotation programs achieve collaboration-related results. These 

policies and practices include, for example, the importance of creating 

shared goa!s, establishing incentives, and undertaking careful 

preparation. 22 

Elsewhere. improvements are needed. Our work at State found that while 

the department has taken many steps to incorporate the interrelated 

elements of an effective training program. State's strategic approach to its 

21GAO, National Security: An Overview of Professional Development Activities Intended to 

Improve Interagency Cot/aboration, GAO-11-108 (Washington, D.C.: Nov. 15.2010). 

22GAO, Interagency Cof/aborallon: State and Anny Personnel Rotation Programs Can 

Build on Positive Results with Additional Preparation and Evaluation, GAO-12-386 

(Washington, D.C .. March 9,2012). 

Page 12 
58 

workforce training still has several key weaknesses. 23 For example, State 

lacks a systematic, comprehensive training needs assessment process, 

incorporating all bureaus and overseas posts. State also lacks formal 

guidance for curriculum design and for data collection and analysis, and 

thus cannot be assured that proper practices and procedures are 

systematically and comprehensively applied. Moreover, the performance 

measures for training generally do not fully address training goals, and 

are generally output- rather than outcome-oriented. We made several 

recommendations for State to improve strategic planning and evaluation 

of its efforts to train personnel, including improvements to State's efforts 

to assess training needs. State generally agreed with our 

recommendations and noted that it would look for ways to enhance its 

ability to assess the effectiveness of training and development efforts 

across employee groups and locations. State has not yet provided us with 

evidence that it has taken action to implement the report's 

recommendations. 

More broadly, given current budget constraints, it is essential that 

agencies identify the appropriate level of investment and establish 

priorities for employee training and development, so that the most 

important training needs are addressed first. Our report to you issued 

earlier this week compared agencies' training investment practices and 

OPM guidance against leading federal training investment practices 

identified from our past work and expert studies. 24 These practices 

included prioritizing investment funding; identifying the most appropriate 

mix of centralized and decentralized approaches for training and 

development programs; and tracking the cost and delivery of training and 

development programs agency-wide. 

In our review, we obtained information from 27 CHCOs on their agencies' 

training investment practices. Many CHCOs reported that they are 

implementing several leading practices important to making strategic 

decisions about training delivery such as, determining the best mix of 

decentralized and centralized training. Some CHCOs expressed the view 

Department of State Add;tional Steps Are Needed to Improve Strategic Planning 

and Evaluation of Training for State Personnef. GAO-11-241 (Washington, D.C .. Jan 25, 

2011). 

24GAO, Federal Training Investments: OPM and Agencies Can Do More to Ensure CostEffective Decisions. GAO-12-878 (Washington, D.C .. Sept. 17.2012). 

Page 13 GAO·12·1023T 
59 

Workforce Flexibilities 

that their components or sub-agencies are more knowledgeable about 

their mission-specific training needs, while the central human capital staff 

can add the most value by managing investment decisions for more 

general training across the department. However, many CHCOs reported 

that they do not set a level of investment agency-wide, do not prioritize 

training agency-wide, and do not have information from component or 

sub-agency leaders regarding their level of investments and priorities. 

Consequently, agencies reported that they are duplicating internal training 

investments and missing opportunities to leverage economies of scale 

across their agencies. Officials from all four agencies we interviewed (the 

Departments of Energy. the Interior, DHS, and Veterans Affairs) to obtain 

additional perspective beyond our survey of 27 CHCOs reported that they 

were unaware of the total amount their agencies invest in federal training 

and cannot provide reliable training data to OPM, which requests these 

data to address its government-wide training responsibilities. 

We found that agencies independently purchase or develop training for 

the same mandated or common occupational training. Several agencies 

and OPM officials reported that a website administered by OPM to 

provide training for the HR community could be expanded to provide 

mandatory or other common training for federal occupations, which, OPM 

reported, could save millions and help standardize training. We 

recommended, among other things, that OPM improve guidance and 

assistance to agencies in establishing a process for setting and 

prioritizing training investments; improve the reliability of agency training 

investment information; and identify the best existing courses that fulfill 

government-wide training requirements and offer them to all agencies 

through their existing online training platform or another appropriate 

platform. OPM generally agreed with most of our recommendations. 25 

In broad terms, human capital fiexibilities represent the policies and 

practices an agency has the authority to implement in managing its 

workforce to accomplish its mission and achieve its goals. The tailored 

use of such flexibilities helps agencies recruit, develop and retain people 

with the knowledge, skills, and abilities that agencies need to accomplish 

their critical missions and compete with the private sector for top talent. 

Human capital ftexibilities include monetary incentives such as 

Page 14 GAO-12-1023T 
60 

recruitment, relocation, and retention bonuses; special hiring authorities 

such as veteran-related hiring authorities; incentive awards such as 

performance-based cash and time-off awards; and work-life policies and 

programs such as flexible work schedules, telework, and child care 

centers and assistance. 

Our 2010 report on the use of recruitment, relocation, and retention 

incentives found that these ftexibilities were widely used by agencies, and 

that retention incentives accounted for the majority of these incentive 

costs. Our review of the steps OPM has taken to help ensure that 

agencies have effective oversight of their incentive programs found that 

while OPM provided oversight of such incentives through various 

mechanisms, including guidance and periodic evaluations and 

accountability reviews, there are opportunities for improvement. 26 We 

recommended that OPM require agencies to incorporate succession 

planning efforts into the decision process for awarding retention 

incentives. OPM agreed with our recommendation and stated that it will 

develop future guidance on the importance of considering succession 

planning in the decision process for awarding retention incentives. In 

January 2011, OPM issued proposed regulations to add succession 

planning to the list of factors an agency may consider before approving a 

retention incentive for an employee who would be likely to leave the 

federal service in the absence of the incentive. OPM has stated that 

specifically listing this factor in the regulations will strengthen the 

relationship between succession planning and retention incentives. OPM 

expects to issue the final regulations before the end of 2012. 

To assist and guide agencies in developing and administering their 

work/life programs, OPM has established working groups, sponsored 

training for agency officials, promulgated regulations implementing 

work/life programs, and provided guidance. In our December 2010 report 

on agencies' satisfaction with OPM's aSSistance, we found that most 

agency officials were satisfied with OPM's help. guidance, and 

information sharing. 27 At the same time, we determined that OPM is 

26GAO, Human Capital: Continued Oppot1unitles Exist for FDA and OPM to Improve 

Oversight of Recruitment Relocation. and Retention Incentives, GAO-1 0-226 

(Washington, D,C" Jan 22,2010), 

27 GAO, Federal Work/Life Programs: Agencies Generaffy Satisfied with OPM Assistance. 

but More Tracking and Information Sharing Needed, GAO~11·137 (Washington, D.C 

Dec, 16,2010) 

Page 15 GAO~12~1023T 
61 

Results-Oriented 

Cultures 

potentially missing opportunities to provide federal agencies with 

additional information that may help them develop and implement 

work/life programs. As such, we recommended that OPM more 

systematically track data already being collected by individual federal 

agencies on their work/life programs such as program usage, and share 

this information with federal agencies. OPM agreed with our 

recommendations and said it is exploring the use of a Web-based tool 

that would provide an ability to collect data from agencies and present it 

in a more meaningful and systematic manner. According to OPM, the 

goal would be to allow users to note the connection between work/life 

programs being offered and related outcomes/results, encouraging 

agencies to engage in similar efforts. 

Leading organizations have found that to successfully transform 

themselves they must often fundamentally change their cultures so that 

they are more results-oriented, customer-focused, and collaborative in 

nature. An effective performance management system is critical to 

achieving this cultural transformation. We have found that having a 

performance management system that creates a "!ine of sight" showing 

how unit and individual performance can contribute to overall 

organizational goals helps individuals understand the connection between 

their daily activities and the organization's success. The federal 

government's senior executives need to lead the way in transforming their 

agencies' cultures28 The performance-based pay system for members of 

the Senior Executive Service (SES), which seeks to provide a clear and 

direct linkage between individual performance and organizational results 

as well as pay, is an important step in government-wide transformation. 

The importance of explicitly linking senior executive expectations to 

results-oriented organizational goals is consistent with findings from our 

past work on performance management 29 

In January 2012, OPM and OMB released a government-wide SES 

performance appraisal systern that provides agencies with a standard 

framework to managing the performance of SES members. While striving 

28GAO, Human Capitaf: Sustained Attention to Strategfc Human Capital Management 

Needed. GAO-09-632T (Washington, D.C. April 22, 2009) 

29GAO, Human Capital: Senior Executive Performance Management Can Be Significantly 

Strengthened to Achieve Resuffs. GAO-04-614 (Washington. D.C.: May 26. 2004). 

Page 16 GAO·12·1023T 
62 

to provide greater clarity and equity in the development of performance 

standards and link to compensation, among other things, the Directors of 

OPM and OMS stated that the new system will also provide agencies with 

the necessary flexibility and capability to customize the system in order to 

meet their needs. Effective implementation of this new system will be 

important because, as we reported in 2008, OPM had found that some 

executive performance plans in use at that time did not fully identify the 

executives' performance measures. 3O 

Leading organizations also develop and maintain inclusive and diverse 

workforces that reflect all segments of society. Such organizations 

typically foster a work environment in which people are enabled and 

motivated to contribute to continuous learning and improvement as well 

as mission accomplishment and provide both accountability and fairness 

for all employees. As with any organizational change effort, having a 

diverse top leadership corps is an organizational strength that can bring a 

wider variety of perspectives and approaches to bear on policy 

development and implementation, strategic planning, problem solving. 

and decision making." In November 2008, we reported on the diversity of 

the SES and the SES developmental pool, from which most SES 

candidates are selected, noting that the representation of women and 

minorities in the SES increased government-wide from October 2000 

through September 2007, but increases did not occur in all major 

executive branch agencies. 32 

In November 2011, OPM reinforced the importance of promoting the 

federal workplace as a model of equality, diversity, and inclusion through 

the issuance of the Government-Wide Diversity and Inclusion Strategic 

Plan. Organized around three strategic goals-workforce diversity, 

workplace inclusion, and sustainability-the plan provides a shared 

direction, encourages commitment, and creates alignment so that 

30GAO, Results-Oriented Management Opportunities EXist for Refinmg the Oversight and 

Implementation of the Semor Executive Performance-Based Pay System, GAO-09-82 

(Washington. DC .. Nov. 21. 2008) 

"GAO-09-632T 

32GAO, Human Capital: Diversity in the Federal SES and Processes for Selecting New 

Executives, GAO-09-11 0 (Washington, D.C .. Nov. 26, 2008). 

Page 17 GAO-12-1023T 
63 

according to OPM, agencies can approach their workplace diversity and 

inclusion efforts in a coordinated, collaborative, and integrated manner. 

In helping to ensure diversity in the pipeline for appointments to the SES 

as well as recruitment at all levels, it is important that agencies have 

strategies to identify and develop a diverse pool of talent for selecting the 

agencies' potential future leaders and to reach out to a diverse pool of 

talent when recruiting. For example, to recruit diverse applicants, 

agencies will need to consider active recruitment strategies such as 

widening the selection of schools from which to recruit, building formal 

relationships with targeted schools to ensure the cultivation of talent for 

future applicant pools, and partnering with multicultural organizations to 

communicate their commitment to diversity and to build, strengthen, and 

maintain relationships.33 

To promote diversity and inclusion in the federal workforce OPM is also 

focusing on increasing the hiring and retention of people with disabilities 

and veterans. 

In 2010, we were asked to identify barriers to the employment of people 

with disabilities in the federal workforce and leading practices that could be 

used to overcome these barriers. In response, we convened a forum to 

identify leading practices that federal agencies could implement within the 

current legislative context. Participants said that the most significant barrier 

keeping people with disabilities from the workplace is attitudinal, which can 

include bias and low expectations for people with disabilities. According to 

participants, there is a fundamental need to change the attitudes of hiring 

managers, supervisors, coworkers, and prospective employees, and that 

cultural change within the agencies is critical to this effort.34 Participants 

identified practices that agencies could implement to help the federal 

government become a model employer for people with disabilities. 

34GAO, Highlights of a Forum: PartiCIpant-Identified Leading Practices That Could 

fncrease the Employment of IndiViduals With Disabilities in the Federal Workforce, 

GAO·11·81SP (Washington. 0 C. Oct 5.2010). 

Page 18 GAO·12·1023T 
64 

Also in July 2010, the President issued Executive Order 1354835 to 

increase the number of individuals with disabilities in the federal 

workforce, Nearly two years after the executive order was signed, we 

found that the federal government was not on track to achieve the 

executive order's hiring goals, To ensure that the federal government is 

well positioned to become a model employer of individuals with 

disabilities, we recommended that the Director of OPM incorporate 

information about agency deficiencies in hiring individuals with disabilities 

into its regular reporting to the President on implementing the executive 

order; expedite the development of the mandatory agency training plans 

required by the order; and assess the accuracy of the data used to 

measure progress toward the order's goals,36 OPM agreed with our 

recommendations and is taking steps to implement them. 

Finally, the Uniformed Services Employment and Reemployment Rights 

Act (USERRA) of 1994 protects the employment and reemployment rights 

of federal and nonfederal employees who leave their civilian employment 

to perform military and other uniformed services,37 And the Veterans' 

Benefits Act of 201 0 (VBA) directed the Department of Labor (Labor) and 

Office of Special Counsel (OSC) to establish a 36-month demonstration 

project (2011-2014) for receiving, investigating, and resolving USERRA 

claims filed against federal executive agencies," The VBA also required 

that we evaluate how Labor and OSC designed the demonstration project 

and assess their relative performance during and after the demonstration 

project. 

In September 2012, as part of our mandated effort to assess the relative 

performance of USERRA claim processing at Labor and OSC, we 

determined that both agencies had implemented comparable processes 

Order 13548 of July 26.2010., Increasmg Federal Employment of Individuals 

with Disabilities, Federal Register No!. 75, No 146/ Friday, July 30. 2010 I Presidential 

Documents p.45039 

36GAO, Disability Empfoyment. Further Action Needed to Oversee Efforts to Meet Federal 

Government Hiring Goals, GAO·12·568 (Washington, D.C .. May 25. 2012) 

37Pub L No. 103-353, 108 Stat 3149 (Oct 13.1994) (codified at 38 U.S.C. §§ 4301-

4335). USERRA is the most recent in a series of laws protecting veterans' employment 

and reemployment rights going back to the Selective Tralning and Service Act of 1940 

Pub. L. No 783,54 Stat. 885, 890 (Sept 16, 1940) 

"Pub. L No. 111-275, § 105,124 Stat. 2864, 2868-70 (Oct 13,2010). 

Page 19 GAO·12·1023T 
65 

Concluding 

Observations 

that should allow Congress to evaluate their relative performance at the 

conclusion of the 3-year demonstration project established by 

Congress. 39 However. to improve agencies' ability to assess relative 

performance, we recommended that both agencies take additional steps 

to ensure data integrity for the performance data they plan to report. 

Although Labor and OSC neither agreed nor disagreed with our 

recommendations, they discussed actions that they both plan to take to 

implement our suggestions. For example, Labor said it will review cost 

data on a quarterly basis for inconsistent or questionable data and correct 

and report any identified data issues each quarter, as necessary. OSC 

said it is reviewing its procedures for compiling and reporting cost data 

during the demonstration project, and is committed to making any 

necessary changes to ensure the demonstration project satisfies 

Congress's goals. 

Strategic human capital management must be the centerpiece of any 

serious effort to ensure federal agencies operate as high-performing 

organizations. A high-quality federal workforce is especially critical now 

given the complex, multi-dimensional issues facing the nation. 

Achievement of this goal is challenging, especially in light of the fiscal 

pressures confronting our national government. 

When we first identified strategic human capital management as a high 

risk area in 2001, it was because many agencies faced challenges in key 

areas including leadership; workforce planning; talent management; and 

creating results-oriented organizational cultures. Since then, the federal 

government has made substantial progress in beginning to address 

human capital challenges and, in many ways, is taking a far more 

strategic approach to managing personnel. Through a variety of 

initiatives, Congress. OPM, and individual agencies have strengthened 

the federal human capital infrastructure. As a result of these 

improvements, in 2011 we narrowed the focus of our high risk 

assessment to closing current and emerging critical skills gaps. These 

challenges must be addressed for agencies to cost-effectively execute 

their missions and respond to emerging challenges. 

39See GAO. Veterans' Reemployment Rights. Department of Labor and Office of Special 

Counsel Need to Take Additional Steps to Ensure Demonstration Project Data Integrity, 

GAO·12·860R (Washington. D C .. Sept 10. 2012) 

Page 20 GAO~12·1023T 
66 

Contacts and 

Acknowledgments 

In short, while much progress has been made over the last 11 years in 

modernizing federal human capital management, the job is far from over. 

Making greater progress requires agencies to continue to address their 

specific personnel challenges, as well as work with OPM and through the 

CHCO Council to address critical skills gaps. Central to success will be 

the continued attention of top-level leadership, effective planning, 

responsive implementation, and robust measurement and evaluation, as 

well as continued congressional oversight to hold agencies accountable 

for results. 40 

Chairman Akaka, Ranking Member Johnson, and Members of the 

Subcommittee, this completes my prepared statement. I would be 

pleased to respond to any questions, 

For further information regarding this statement, please contact Robert 

Goldenkoff, Director, Strategic Issues, at (202) 512-6806, or 

goldenkoffr@gao,gov, or Yvonne D, Jones, Director, Strategic Issues, at 

(202) 512-6806, or jonesy@gao,gov, Contact points for our Offices of 

Congressional Relations and Public Affairs may be found on the last page 

of this statement. 

Individuals making key contributions to this statement include Trina 

Lewis, Assistant Director; Shea Bader, Analyst-in-Charge; Margaret Best. 

Barbara Bovbjerg, Sara Daleski, Timothy DiNapoli, William Doherty, 

Brenda Farrell. Michele Fejfar; Robert Gebhart, Shirley Jones, Steven 

Lozano, Erik Kjeldgaard, Latesha Love, Signora May, Rebecca Rose, 

Jeffrey Schmerling, Rebecca Shea, Wesley Sholtes and Jason 

Vassilicos, Key contributors for the earlier work that supports this 

testimony are listed in each product. 

4OGAO, Strategic Plan 2007-2012, GAO-07-1SP (Washington, D.C .. March 30, 2007). 

Page 21 
67 

NTEU 

The National Treasury Employees Union 

Statement of Colleen M. Kelley 

National President 

National Treasury Employees Union 

Before the Subcommittee on Oversight of Government Management, 

the Federal Workforce, and the District of Columbia 

Senate Homeland Security and Governmental Affairs Committee 

On 

Investing in an Effective Federal Workforce 

September 19, 2012 

2:30 pm 
68 

Chairman Akaka, Ranking Member Johnson, Members of the Subcommittee, thank you 

so much for inviting NTEU to share our thoughts on the state of the federal workforce, pressing 

issues that need to be addressed and recent progress that has been made in addressing some 

of those issues. As President of the National Treasury Employees Union, I represent more than 

150,000 federal employees in 31 federal agencies and departments. 

It is a pleasure for me to be here today, particularly because this may be the last 

opportunity I have to testify in front of my good friend, Senator Akaka. You have been a 

stalwart friend of federal employees, both during the 14 years you served in the House of 

Representatives and during your distinguished 22 year career in the U.S. Senate. Your advocacy 

on behalf of the federal workforce from your efforts to ensure fair pay and benefits to your 

actions to protect collective bargaining rights will be sorely missed by federal employees 

everywhere. 

The federal civilian workforce today is virtually as small as it has ever been in the 

modern era. In 1953, the federal government employed one worker for every 78 residents; in 

2009, the federal government employed one worker for every 147 residents. Many of the 

federal agencies where NTEU represents employees are under virtual hiring freezes and are 

operating with limited resources. Although some federal agencies have been able to make 

great strides through automation and other cost saving tools, much of the work of the federal 

government requires people - talented and educated people. 

The federal employees represented by NTEU are budget analysts overseeing multibillion dollar budgets, physicians undertaking cutting edge research to cure deadly diseases, law 

enforcement officers guarding our borders and scientists safeguarding our food and water 
69 

supplies. The federal government will need to be prepared to compete for the best and 

brightest college graduates as current federal employees retire. Fair pay, affordable health 

insurance and a stable retirement program are key to the federal government's ability to 

compete for, and retain the talent and experience that will be needed. 

We all know that our country faces serious challenges - federal employees have not 

been exempt from those challenges or immune from efforts to resolve our fiscal difficulties. 

The federal workforce has been under a pay freeze since 2011. This sacrifice will save the 

federal government more than $60 billion over the next ten years. Legislation enacted earlier 

this year extending unemployment benefits was paid for in part by requiring future federal 

employees to contribute an additional amount toward their retirement benefits. Federal 

workers contributed another $15 billion towards deficit reduction through enactment of this 

provision. 

Federal employees are scheduled to receive a 0.5% pay raise upon the expiration of the 

current Continuing Resolution early next year and NTEU is grateful for an end to the pay freeze. 

However, there are many other critical issues facing the federal government and the federal 

workforce. I look forward to continuing our positive working relationship with this 

Subcommittee and working together to reach agreement on the many issues facing the federal 

workforce. 

NTEU was pleased to be able to work with you, Senator Akaka, to achieve retirement 

equity for our federal workers in Hawaii, Alaska and the u.s. territories. Signed into law in 

2009, your Non-Foreign Area Retirement Equity Assurance Act corrected an inequity that NTEU 

members and many others had suffered for years. While federal employees on the mainland 
70 

received locality pay and retirement credit based on their full salaries, federal workers receiving 

the non-foreign area cost of living adjustment received no credit toward retirement for this 

portion of their pay. Your legislation guaranteed that these federal employees would be made 

whole and that they would receive locality pay which would count toward their retirement 

calculations unlike the non-foreign cost of living allowances they received. Through your 

leadership and perseverance, your colleagues came to understand the critical need to fairly 

compensate federal employees who provide services in extremely high cost areas of our nation. 

Senator Akaka, you have long understood the federal government's need to compete 

with the private sector for the best talent and you have worked tirelessly to improve the federal 

government's hiring process. Many of the concepts you have championed have been included 

in legislation that has been signed into law and in hiring reforms that have been instituted by 

the Office of Personnel Management. Simplifying and streamlining the federal application 

process and requiring vacancy announcements to be written clearly and understandably 

represent positive improvements while continuing to ensure that the merit system and a fair 

and open process for filling federal jobs remains in place. 

You have also been a clear leader in making sure the federal government employs the 

full range of workplace flexibilities available to most private sector workers. It has long been 

known that offering workplace flexibilities helps with recruitment and retention of employees, 

whether it is recruitment and retention bonuses for difficult to fill positions or relocation 

assistance, student loan assistance or flextime schedules. 

One landmark workplace flexibility in particular that I want to comment on was the 

approval of telework for the federal workforce, and your telework enhancement act signed into 
71 

law in 2010 was a major step forward. The benefit of telework to both employees and 

employers has been shown during emergencies. Telework helps employees handle work-life 

issues and encourages increased productivity as employees are better able to plan to meet 

deadlines and accomplish their missions. 

Another of your major achievements was the change in the Federal Employees 

Retirement System (FERS) that will permit employees covered by that retirement program to 

include their unused sick leave when determining their length of federal service and computing 

their retirement benefit. When the provision is fully phased in at the end of 2013, employees 

under FERS will be treated the same as their counterparts in the Civil Service Retirement 

System (CSRS) and be able to include their unused sick leave when calculating their years of 

federal service. 

This same Akaka provision that guaranteed employees the ability to include their 

unused sick leave in their retirement calculations also corrected a long-standing flaw in how the 

government valued part-time service. Prior to enactment of the Akaka amendment, part-time 

service worked near the end of an employee's federal career, resulted in a flawed retirement 

benefit calculation. 

Earlier this year, you held a critical hearing on the Office of Personnel Management's 

(OPM) processing of federal retiree annuity payments. Your hearing brought much needed 

attention to the serious backlogs OPM was facing and the lengthy period of time it was taking 

OPM to process new retirement applications. Your hearing exposed some of the reasons for 

the retirement processing delays and resulted in a path forward with OPM laying out a plan to 

reduce its backlog and improve services to federal employees and retirees. 
72 

You also championed legislation during your long Senate career that eliminated the 

restrictive annual open season for employees to enroll in the Thrift Savings Plan. At the same 

time, you noted the need for retirement and financial literacy programs for the federal 

workforce and you authored the legislation that allowed federal workers over the age of 50 to 

make "catch-up" contributions to their Thrift Savings Plan accounts, putting them on equal 

footing with their private sector counterparts. Each of these legislative triumphs represented a 

major improvement in the lives of federal employees. 

Your work has also involved efforts to increase training and mentoring possibilities for 

the federal workforce as well as improvements in protections available to workers who disclose 

wrongdoing in the federal government. Your Whistleblower Protection Act, which passed the 

Senate earlier this year, will restore and expand protections for federal employees who disclose 

waste, fraud or abuse in the federal government. NTEU is a strong supporter of your legislation 

and will continue to push for House consideration of this important bill. 

Similarly, we strongly supported your efforts to ensure that any changes to the Federal 

Employees Compensation (FECAl Program were done fairly. Your amendment to the Senate 

Postal Reform legislation earlier this year sought to correct a controversial and harmful 

proposal in that bill that would have cut benefits to workers injured on the job and those who 

are older or have family obligations. NTEU is committed to a safe and healthy federal 

workplace where employees are less likely to ever suffer injuries that may lead to a FECA claim 

and we will continue to stress the importance of keeping FECA fair for those who do need to 

avail themselves of the program's benefits. 
73 

NTEU also salutes you for your commitment to ensuring that all federal employees 

enjoy the same equal treatment and protections. You have supported legislation that would 

allow all NTEU members and all federal workers with domestic partners to be able to 

participate in employee benefit programs similar to the options granted married couples. Your 

Subcommittee hearing helped focus attention on this legislation which provides both benefits 

and obligations - it would require that domestic partners be subject to the same employment 

related obligations and duties and the same ethics requirements that are imposed on married 

couples. 

Your career has also been marked by your leadership efforts to right size the federal 

employee to contractor mix. NTEU has long maintained that federal employees, given the 

appropriate tools and resources, do the work of the federal government better and more 

efficiently than any private entity. We have been pleased to testify before your Subcommittee 

on some of the most egregious examples of misguided outsourcing such as private tax 

collection efforts. Congress eventually voted to eliminate funding for this effort, finding that it 

was neither cost-effective nor fair to taxpayers. NTEU will continue to focus our efforts on 

leveling the playing field and ensuring the accountability of contractors within the federal 

contracting system, but your voice will certainly be missed. 

I also want to commend you for your leadership with regard to the Safeguarding 

American Agriculture Act. This legislation recognizes the mission of Customs and Border 

Protection (CBP) Agriculture Specialists in safeguarding our nation's food and agriculture from 

invasive foreign pests and disease. It would create a career track within CBP for qualified 

technicians to be promoted to CBP Agriculture Specialist positions and provide education and 
74 

training as well as many other improvements. It is an excellent first step in focusing attention 

on the agricultural quality inspection mission of the agency and we applaud your efforts in this 

regard. 

Finally, I commend you for your strong support for the rights of federal employees to 

organize and collectively bargain. NTEU believes that the best way to achieve agency missions 

and optimal work-life balance is for an organization to involve its employees. Employees who 

have a voice in their workplace feel invested in the success of that organization. If the workers 

have a collective voice, the effect is even stronger. 

On behalf of federal employees across the nation, Senator Akaka, thank you for your 

dedication and commitment to making sure employees are treated fairly and have the tools 

they need to provide the services the American public has come to expect from the federal 

government. We were so pleased that we had the opportunity to honor you at our annual 

Legislative Conference earlier this year and present you with an award recognizing your 

leadership on behalf of federal employees and retirees. It has been a distinct honor and 

privilege to work with you. You will be missed. 
75 

~ ~ 

AFGE 

Con~ressional 

Testimonv 

STATEMENT BY 

J. DAVID COX, SR. 

NATIONAL PRESIDENT 

AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES, AFL·CIO 

BEFORE 

SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT MANAGEMENT, 

THE FEDERAL WORKFORCE, AND THE DISTRICT OF COLUMBIA 

SENATE COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

ON 

INVESTING IN AN EFFECTIVE FEDERAL WORKFORCE 

SEPTEMBER 19, 2012 

American Federation of Government Employees, AFl·ClO 

80 F Street, NW, Washington, D.C. 20001 * (202) 737·8700 * www.afge.org 

--
76 

Mr. Chairman and Members of the Committee: My name is J. David Cox, Sr., and I am 

the National President of the American Federation of Government Employees, AFl-CIO 

(AFGE). On behalf of the more than 670,000 federal employees represented by AFGE, I 

thank you for this opportunity to testify today. 

We have been asked to discuss our union's view of the short-term and long-term needs 

of the federal workforce with respect to our relationship with agency management, and 

to comment on the compensation -- in terms of both pay and benefits - that federal 

employees receive. We were also asked that we discuss issues such as employee 

training and work-life balance for federal employees. These are all vital issues that are 

at the forefront of my mind every day as I work with my union colleagues to try to help 

create conditions for federal employment that promote not only my members' 

interests, but also the interests of the public we serve. 

AFGE represents federal workers who perform an enormously broad array of functions 

on behalf of the American people. We are the doctors, nurses, food service workers and 

appointment makers in our veterans' health care system. We are the EPA scientists 

studying the effects of contaminants in our air and water who propose ways to protect 

the health of America's children. We are the border patrol agents and federal 

corrections officers who guard public safety. We are the claims processors who get 

Social Security and Veterans Benefits checks out on time. We are the biomedical 

researchers at the National Institutes of Health and the Centers for Disease Control and 

Prevention who come up with new treatments for cancer and ways to stop epidemics. 

We are the meat and pOUltry inspectors who make sure our food supply is safe, and the 

Transportation Security Officers who protect air travelers from terrorist threats. We are 

the civilian workers at the Department of Defense who handle everything from military 

logistics to the repair and maintenance of sophisticated weaponry on which our 

warfighters and national security depend. 

So you see that the stakes are very high when it comes to maintaining a well-trained and 

capable federal workforce. And these are the things that don't promote a well-trained 

and capable workforce: Freezing or cutting salaries, threatening layoffs and furloughs 

through sequesters and personnel ceilings, forcing new and current employees to pay 

more for retirement benefits and contemplating various ways to cut those benefits, 

bullying us with disparaging comments about the quality of our work and work ethic - in 

fact they have the exact opposite effect. 

Current Budget Situation 

Over the next several months, the Congress will likely consider ways to adhere to the iIIconceived Budget Control Act of 2011 that do not involve sequesters in either the 

Department of Defense (000) or any part of the discretionary budget outside of 000. 

1 
77 

AFGE is unequivocally opposed to sequester. We consider it a foolish, damaging, and 

extraordinarily unfair and inappropriate way to reduce the deficit. As horrendous as the 

prospect of sequester is for federal employees, with the implied threat of Reductions in 

Force (RIF), furloughs, and reduced resources for carrying out agency missions; just as 

ominous is the prospect of any or all of the recommendations of the co-chairs of the 

President's deficit commission, Morgan Stanley director Erskine Bowles and former 

Wyoming Senator Alan Simpson. Despite the fact that the co-chairs' recommendations 

did not win the support of an adequate number of the commission's members, their 

failed plan is undergoing a rehabilitation in the press as journalists and pundits insist 

that it is the only menu of policy options that should be considered by the Congress or 

either presidential candidate. 

Simpson-Bowles's recommendations for federal employees are as cruel as they are 

pointless; they inflict pain on one vulnerable group of Americans without doing much of 

anything to reduce the defiCit, either in the short or long term. Chairman Akaka is to be 

commended for singling out one particularly idiotic and damaging proposal from the cochairs: the idea of turning the Federal Employees Health Benefits Program (FEHBP) into 

a voucher system so that it can serve as a model for the eventual voucherization of 

Medicare. The Simpson and Bowles plan would shift the basis for calculation of 

retirement annuities from the average of the highest three years of salary to the 

average of the highest five years, would require FERS-covered employees to pay as 

much as six percent of salary for their annuities, shift to the inferior "chained consumer 

price index" for cost of living adjustments for annuities and Social Security, charge 

retirees more for continuing FEHBP coverage, cut ten percent of federal jobs, and 

extend the pay freeze for an additional year. It is a diabolical list, a litany of punishment 

intended to decimate the living standards of federal employees, obliterate even the 

concept of fairness in spreading the burden of deficit reduction, and destroy the 

government's ability to recruit or retain a high-quality workforce. 

Non-Foreign COLA 

For 61 years, federal employees who lived and worked outside the Continental United 

States in Alaska, Hawaii, Puerto Rico, Guam, and the US Virgin Islands received a cost of 

living adjustment (COLA) in addition to their base salaries to compensate them for the 

exceptionally high cost of living in what had been considered "remote" areas. While the 

COLA program constituted an important component of compensation for these 

employees, especially because it received favorable tax treatment, the annual payments 

were not counted as salary for purposes of calculating retirement annUities, the 

government's contribution to the Thrift Savings Plan (TSP), or any other salary or wagebased benefit or program. Thus, while the non-foreign COLA ensured a fair standard of 

living during one's working life, federal retirement benefits of employees in the non2 
78 

foreign COLA areas constituted a far smaller percentage of their pre-retirement incomes 

than those of other federal retirees. 

Chairman Akaka's 2009 legislation, The Non-Foreign Area Retirement Equity Assurance 

Act resolved this disparity by bringing federal employees in the non-foreign COLA areas 

into the locality pay system. The law allowed for a gradual transition from COLAs to 

locality pay, requiring employee to give up only 65 cents of the COLA that the employee 

would receive under the frozen COLA rate for every dollar of locality pay, in order to 

help offset the new tax liability and additional retirement contributions due on locality 

pay. The full transition to locality pay has occurred this year. Thanks to the transition 

formula insisted upon by the Chairman, no federal employee's take-home pay declined 

during the transition. 

The Chairman also succeeded in adding to the legislation a provision instructing the 

Bureau of labor Statistics to conduct pay surveys Alaska and Hawaii so that good data 

could be obtained to measure the difference between salaries in the federal and nonfederal sectors for the jobs performed by federal employees in those locations. As a 

result, federal employees in both locations are receiving locality pay commensurate 

with the pay gaps in their states, and are continuing to receive a residual COLA as well, 

as their locality pay has not yet risen to a level that fully offsets the COLA. It is no 

exaggeration to say that these protections are due to the extraordinary efforts of the 

Chairman. 

In addition to maintaining take-home pay, and improving retirement benefits, an 

extremely important provision of this law required that every federal employee who 

received a non-foreign COLA prior to enactment be eligible for the transition to locality 

pay, including Transportation Security Officers (TSO) of the Transportation Security 

Administration (TSA). The law explicitly prohibits TSA from withholding locality pay from 

its employees on the basis of "performance." Federal managers at TSA and all other 

agencies have numerous opportunities to award or deny employees additional pay on 

the basis of performance, but the extraordinary, gross discretion on individual pay 

adjustments granted to TSA's managers was restricted in this legislation. TSO's were, 

for the first time since the establishment of the agency, granted a pay status equal to 

other federal employees living and working in these areas. While the struggle continues 

to upgrade the status of the employees of TSA so that they are treated the same as 

other executive branch employees in all aspects of employment and compensation, this 

legislation marks an important milestone in establishing the principle that 

Transportation Security Officers deserve full equality. 

3 
79 

Sick Leave Equity for FERS Employees 

It would be difficult to overstate the importance federal employees place on the 

Chairman's legislation to equalize the treatment of unused sick leave between the Civil 

Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS). 

This inequity produced so many perverse incentives that the change was supported as 

strongly by management groups as it was by AFGE. Equalizing this treatment was an 

excellent example of the type of "win-win" policies on federal employment promoted 

and ultimately enacted through the Chairman's efforts. When fully phased in in 2013, 

federal employees who had the good fortune to be able accumulate sick leave over the 

course of their careers will no longer face a "use it or lose it" choice as they approach 

retirement. Employees will spend their last months at work helping to train their 

successors and finishing up projects, rather than catching up on doctor's appointments 

and medical screenings, thanks to the Chairman's efforts. 

Thrift Savings Plan 

The Chairman was also responsible for legislation that allows enrollment in the Thrift 

Savings Plan at any time, and a bill that provided for mandatory financial literacy and 

retirement planning education for federal employees so that they can make the most of 

their TSP accounts. In every case where Congress has passed a law granting a new 

benefit to holders of 401 (k) accounts, such as the Pension Protection Act of 2006, he 

has introduced or supported legislation, such as the 2009 TSP Enhancement Act, to 

provide equivalent benefits for federal employees with TSP accounts. Examples of this 

include granting federal employees over age 50 the ability to make "catch up" TSP 

deposits, the ability of non-spouse beneficiaries to inherit TSP funds without a tax 

penalty if they transfer the money into an IRA, immediate agency contributions and 

automatic enrollment, and the option to save for retirement through a Roth-type of 

IRA. 

The "Save Mare Tomorrow Act," which Chairman Akaka introduced in May of thiS year, 

would improve the TSP even further by providing for automatic escalation of an 

employee's, and therefore the government's, contributions to a TSP account. This bill is 

also an attempt to grant TSP participants the same opportunities private sector workers 

have as a result of the Pension Protection Act. Many federal employees contribute too 

little to their TSP accounts to qualify for the maximum government match. Although a 

significant portion of those who fail to maximize their TSP benefits do so because they 

simply cannot afford the additional savings, some portion of the workforce likely stops 

saving at two to three percent of salary because of inertia or a dislike of thinking about 

retirement planning. This bill would provide automatic increases in employee 

contributions of one percent of salary per year, with an opt-out provision for those who 

actively decide not to increase their investments. 

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Inertia aside, a reluctance or failure to participate fully in the TSP and take advantage of 

the maximum government match is one of the many pernicious effects of the pay freeze 

and the mandatory increase in FERS contributions that employees hired after January 1, 

2013 will face. While it is dear that every federal employee should save at least five 

percent of their salaries each year in the TSP, it is equally clear that many cannot do so 

because of the pay freeze. Federal employees who must spend nearly all of their 

salaries on necessities such as health insurance, food, rent, child care, transportation 

and utilities simply cannot afford to save the full five percent when these costs of living 

rise but their pay does not. Likewise, with salaries effectively 2.3% lower than those 

paid to coworkers' hired in previous years, federal employees hired after 2012 will have 

an even harder time constructing their budgets in order to take full advantage of the 

government match for TSP. And as everyone knows, politicians from both parties have 

advanced plans to force federal employees to pay even more of their salaries toward 

future retirement benefits. All these proposals amount to permanent salary reductions, 

and all of them would make full participation in the TSP even less affordable than it is 

today. 

last week's New York Times included a supplement on retirement, in which the 

difficulties of living on just Social Security or even Social Security plus 401 (k) and IRA 

retirement savings. The booms and busts in the stock market over the last twenty 

years, including the dot-com bust and the 2008 financial crisis, combined with job cuts 

and employer decisions to stop matching, have left many retirees with too little income 

in retirement. The lone success story in the Times involved someone who was able to 

sell her "paid for" house and live off the proceeds in a smaller apartment in a less 

expensive real estate market. The bursting of the housing bubble makes this an unlikely 

scenario for most homeowners. 

With the current retirement system, and the persistence of politicians' efforts both to 

cut benefits and raise financing obligations on the part of workers, the only choice left 

for federal employees to help secure their own retirement prospects is to save more. 

The Save More Tomorrow Act will undoubtedly help this along. 

TSA, DHS, and DoD Personnel Systems 

I would be remiss if I did not mention the Chairman's courageous, determined, and 

unwavering support for the collective bargaining rights and right to appeal disciplinary 

matters to a third, independent party, for federal employees in the Transportation 

Security Administration (TSA), the Department of Homeland Security (DHS), and the 

Department of Defense (000). Whether it was during the creation of the TSA, the 

consolidation of over 20 agencies under DHS, or changes in leadership at the Pentagon, 

Chairman Akaka stood firm so many times on behalf of our nation's dedicated 

employees when their rights were being threatened. When we lost some important 

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battles, under MAXHR and the National Security Personnel System (NSPS), the Chairman 

never gave up. And as we all know from having spent so much time on these matters in 

the legislative trenches, we have finally prevailed in all three instances. 

Today, TSOs have collective bargaining rights, a new disciplinary appeals system, and 

will be voting shortly on the ratification of a new contract that addresses numerous 

issues of TSOs, from uniform allowances to shift bidding, and from rational leave policies 

to transfers and shift trades. It is a new day at TSA, and we are truly grateful for the 

Chairman's support for more than a decade while we fought to establish for TSOs the 

same rights and opportunities as other federal employees. 

NSPS and MAXHR were created by people with ulterior motives, who tried to hide their 

real agenda from 000 and DHS employees, their unions, Congress and the public. After 

September 11, 2001, the two departments exploited the national fear of another 

terrorist attack and determination to protect our country to advocate for what was in 

reality a profound erosion of civil service protections and collective bargaining rights 

that had nothing whatsoever to do with national security. The Chairman recognized the 

dangers early and were among the very few Senators who voted against the bills that 

allowed for NSPS and MAXHR. 

Although the laws creating the Department of Homeland Security and authorizing the 

000 National Security Personnel system required that collective bargaining be ensured, 

both Departments tried to gut it. They did this by insisting that they were ensuring 

collective bargaining while redefining it beyond recognition. Under the regulations they 

promulgated, an internal Board whose members would be chosen by the Department 

Secretaries, would decide labor-management disputes; there would be no neutral third 

party. The Departments could override collective bargaining agreements by unilaterally 

issuing an internal document. These unilateral internal documents also could render 

non-negotiable any subject the Departments did not want to talk about at the 

bargaining table. The unions' right to protect employees in management meetings, 

investigations, or grievances was greatly diminished. The rules involving information 

requests, standards of evidence in employee appeals and many other issues of due 

process and labor relations were revised to tip the scales heavily in favor of the 

Departments. 

We and other unions filed suit against the Departments. The Courts found in favor of 

the unions in the DHS case and the Department chose not to appeal further. The 

unions' initial win in the 000 case was overturned on appeal. With 000 poised to strike 

down employee and union rights in its workplaces, we turned to Congress for help and 

once again, the Chairman came through for us. In the National Defense Authorization 

Act of 2008, the Chairman made sure Federal employees' collective bargaining and 

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other rights were restored. The Secretary of Defense had announced that for the 

coming year, NSPS employees would get no annual increase, but the Chairman put in a 

floor that gave all good employees at least some increase. The NOAA 2010 finally 

repealed NSPS in its entirety and we note that the Chairman has been closely watching 

the transition to make sure it is fair and complete. 

During this difficult period, the Chairman's constant insistence on appropriate oversight 

by this subcommittee ensured that the Department had to answer for its irrational and 

counterproductive personnel decisions, and now, the employees at DHS, including 

Border Patrol agents, ICE agents, Federal Protective Officers and employees at FEMA, 

have had their rights to bargain and appeal disciplinary matters fully restored to the 

original Title 5 provisions. 

The same can be said of the Pentagon's ill-conceived and punitive NSPS. The day NSPS 

was enacted was a grim one for the hundreds of thousands of dedicated, patriotic 

civilians in 000. But because of the Chairman's foresight, determination and 

commitment, we Were finally successful in repealing this dangerous system that had 

demoralized the 000 civilian workforce beyond all imagining. 

Labor-Management Issues Today 

Today, Federal workers are facing more challenges than ever. With pay freezes, high 

retirement rates, and severe budget cuts, it is crucial that labor and management work 

together to solve problems and accomplish the mission while maintaining employee 

rights and protections, A positive labor-management relationship saves money that 

might otherwise be spent in litigation and appeals; improves employee morale; and uses 

time more effectively as frontline employees, their union representatives, and managers 

bring their ideas, their expertise, and their efforts together towards common goals. 

In December 2009, President Obama issued Executive Order 13522, "Creating LaborManagement Forums to Improve Delivery of Government Services." I sit on the 

National Council on Federal labor-Management Relations, created by the Executive 

Order. We have seen some successes; some workplaces where labor and management 

have a constructive relationship and work together in accordance with the E.O. But we 

see many more workplaces where management has stalled on carrying out the Order, 

does only the bare minimum, or actively dismisses it. The E.O. calls for the creation of 

labor-management forums at various levels in agencies. Some are up and running and 

doing good work. In other cases, managers have refused to establish forums, or refused 

to let the forums take on meaningful issues that could help the agency cut costs, work 

more efficiently, and deliver better services to the public. Where forums are working 

well, it is usually because the boss believes in the importance of good labor7 
83 

management relations and sends the message out loud and clear to subordinates. I 

hope to see more vigorous implementation of the letter and spirit of the Executive 

Order. 

Collective bargaining is an orderly process for labor and management jointly to 

determine some of the processes and procedures that help customize the workplace to 

meet their needs. Negotiating, weighing options, reaching agreement, putting it in 

writing, and then making the contract available to all employees helps create rules and 

practices that are more fair, equitable and workable than ones that are unilaterally 

developed. A contract helps employees and managers understand their rights, and it 

provides mechanisms for employees to appeal if they believe they have been treated 

wrongly or unfairly. When labor and management comply with the laws governing the 

labor-management relationship and deal with each other in good faith, workplaces run 

more smoothly and unnecessary disputes are avoided. When they go beyond 

compliance and collaborate on finding better ways to meet the agency's goals - even 

better. 

All too often, however, we deal with managers who evade their labor-management 

responsibilities and higher-ups who don't hold them accountable. The very institution 

of collective bargaining is under attack today, especially in the public sector, by those 

who do not want workers to have a say in their workplaces. As the Chairman has always 

done, AFGE will continue to work to ensure that Federal employees have strong rights 

and protections, including fair and transparent appeal procedures and collective 

bargaining rights, and are free from arbitrary adverse personnel actions. We can only 

hope that future senators will have even half the energy, dedication and courage that 

the Chairman has shown in fighting for Federal employees. 

Workplace Flexibilities 

AFGE is grateful to the Chairman for co-sponsoring the Telework Enhancement Act, 

which was signed into law in December 2010. AFGE has long pushed for expanded 

telework opportunities for Federal employees. It is a benefit that improves job 

satisfaction and morale and helps employees create a better balance between work and 

home. By offering telework, Federal agencies can improve their ability to recruit and 

retain talented employees. The community benefits as well if telework results in less 

gridlock and pollution on the roads. 

Over the years, however, we have been frustrated by how slow the progress has been in 

expanding the use of telework. Many obstacles and barriers have kept employees from 

fully enjoying the benefits of having a flexible workplace. Many supervisors don't know 

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84 

how to manage employees remotely and fear losing control of their workers. Some 

don't believe people are really working unless they have them in their sight. The key is 

in the results. If employees do good work and produce results, it doesn't matter how or 

where they did their job. Experience has shown that employees are as productive and 

frequently more productive working at home than in the workplace. 

In the past, outfitting a home office to allow a Federal employee to work at home could 

be difficult and cumbersome. Over the last couple of decades, technology has made 

astounding progress. The internet, emails, social media and the ever-expanding new 

features and programs make communication instant, wherever you are, and provide 

almost limitless access to information. It is easier than ever to enable employees 

working remotely to connect to agency networks and be productive at home. There are 

security concerns, of course, but great progress is being made in this area as well. 

As part of the April survey conducted by the U.S. Office of Personnel Management and 

shared in its annual report to Congress on the Status ofTelework in the Federal 

Government, agencies were asked to "identify problems/barriers associated with 

increasing the number of telecommuters in your agency." The survey uncovered the 

following barriers to telework, presented in descending rank order: 

• managerial concerns about maintaining performance and productivity, 

• funding for equipment and services at the remote site and the cost of telework 

centers, 

• fair and equal treatment for those who telework and those who work on site, 

• concerns about the security of classified or sensitive documents, 

• employee concerns about feeling isolated from colleagues, 

• electronic connectivity to the office. 

The Telework Enhancement Act goes far to ensure that agencies expand the use of 

telework and overcome the barriers. The Act puts a new emphasis on telework and 

reinforces the sense of Congress that telework is important for employees and is in the 

public interest. It requires everyone who teleworks to have a written agreement that 

helps both management and the employee have a clear understanding of their 

expectations. It maintains the voluntary nature of telework. The Act calls on the 

National Institute of Standards and Technology and OMB to determine what agencies 

must provide to enable their employees to telework. The Act requires agencies to make 

decisions about the eligibility of every position but it also allows for episodic telework. 

AFGE prefers to look at the tasks employees do and make determinations about 

whether or not they can be done at home. We don't think that positions should be 

deemed to be wholly ineligible for telework. Obviously, there are some jobs that cannot 

9 
85 

be done at home - but there may be some tasks that can, such as writing reports, 

studying for and taking an online test, or participating in an online class. 

AFGE is confident that in collaboration with the agencies whose employees we 

represent, we can work to break down the barriers and allow the maximum number of 

employees to telework if they choose. Many of the barriers listed above can be 

eliminated by training and focusing on a cultural shift, highlighting the rewards to both 

the workers and the agency. The benefits of flexible workplace arrangements have 

been proven time and time again. We thank the Chairman for his tireless efforts on 

promoting flexible work arrangements for federal employees and AFGE will continue to 

work with the agencies to ensure that the Telework Enhancement Act is implemented to 

its fullest. Our challenge in these difficult times is attracting and retaining bright, 

dedicated Federal workers. Providing a flexible workplace is one benefit, as the 

Chairman knows, that we need to take advantage of and make available to as many 

workers as possible. 

Other Workplace Flexibilities 

Workplace flexibilities that help attract and retain good employees go beyond telework. 

In our bargaining units, we bargain for many different flexibilities, all of which benefit 

both the agency and employees. Where we have labor-management forums under E.O. 

13522, we also discuss ways to improve the work of our agencies and the job 

satisfaction of our members. These flexibilities include such things as flexible work 

schedules; child care and elder care; smoking cessation programs; awards (including 

time-off awards for special achievements); transit subsidies; tuition reimbursement and 

access to training and development opportunities; and other things that make the 

workplace more rewarding for employees. 

Privatization 

I must also thank the Chairman for his unstinting support for federal employees in their 

fight against privatization. During the last ten years, several historic sourcing reforms 

have been enacted. And he has either been the champion or the leading supporter in 

every instance: Requiring a formal cost comparison before any work can be converted 

to contractor performance in order to protect taxpayer interests against thoughtless 

privatization. Excluding health care and retirement costs from the cost comparison 

process to ensure that contractors don't receive unfair advantages from short-changing 

their employees on benefits. Imposing a suspension on the infamous OMS Circular A-76 

privatization process until documented problems are finally corrected. Requiring 

agencies to develop inventories of their service contracts in order to better identify and 

control privatization spending. And directing agencies to give "special consideration" to 

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86 

insourcing functions that cost too much, are poorly performed, or include functions 

inappropriate for privatization. 

The Chairman has even played a leading role in trying to reduce the billions of dollars 

taxpayers spend every year on compensation for contractors above that of even the 

President of the United States. I also thank the Chairman for his staunch opposition to 

arbitrary reductions in the size of the federal workforce. One such proposal-an 

arbitrary cut of 5% in DoD's civilian workforce-was included in the committee-passed 

FY13 National Defense Authorization Act. Because this document would be 

unrecognizable as AFGE testimony if we did not ask for further assistance, I urge the 

Chairman to be an original cosponsor of legislation to be introduced by Senator Ben 

Cardin (D-MD) to oppose such thoughtless downsizing. 

Veterans' Issues 

When I reflect on Chairman Akaka's extraordinary record as Chairman of the Senate 

Committee on Veterans' Affairs, my admiration for his vast accomplishments is further 

enhanced by a deep sense of personal appreciation. I spent 23 years as a nurse at the 

VA Medical Center in my hometown of Salisbury, North Carolina, prior to becoming a 

national officer of AFGE. To me, what best characterizes Chairman Akaka's tenure on 

the Senate VA Committee as Chairman, Ranking Member and Senior Member, are his 

tireless efforts to address every deficiency in our nation's support system for veterans, 

and his equally steadfast commitment to the VA workforce providing those services. 

Even before assuming the Chairmanship, Chairman Akaka's zero tolerance of 

underfunding of the VA health care system was well known. When lawmakers learned 

of the billion dollar plus shortfall in veterans' health care dollars in 2005, then Ranking 

Member Akaka demanded immediate action to ensure that veterans were shielded 

from faulty budget predictions, short staffing and closed hospital beds. Chairman 

Akaka's never-ending quest to fund the full"cost of war" by providing adequate and 

predictable funding for the VA health care system culminated in one of the most 

important pieces of veterans' legislation in this nation's history. The Veterans Health 

Care Budget Reform and Transparency Act of 2009, cosponsored by Chairman Akaka 

(and House VA Chair Bob Filner) finally put an end to the yearly uncertainly that plagued 

every VA hospital and clinic through advance appropriations and more reliable budget 

forecasting. I was deeply honored to be present at the bill signing, and to know that 

President Obama's commitment to AFGE to bring about VA health care funding reform 

played an important role in reaching this milestone. 

The impressive list of veterans' issues that Chairman Akaka championed throughout his 

tenure on the VA Committee reveals both his resolve to leave no veteran behind as well 

as his personal connection to the struggles of wounded warriors, through his own 

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military experience. After he cosponsored the Post 9/11 Gf 8iff of Rights, he continued 

to fight for improvements in these critical benefits, because as he noted, "The World 

War II GI Bill changed my life, and my generation." He fought for adequate treatment 

and compensation for PTSD and traumatic brain injury, and his landmark legislation to 

provide support to caregivers of wounded warriors has had a profound impact on these 

families. 

Although Chairman Akaka regularly called for substantial funding increases in the VA 

health care budget, for both direct care and specialized veterans' research, he never 

tolerated the misuse of taxpayer dollars, especially when it adversely impacted 

veterans. He led the fight to protect VA health care dollars from privatization studies in 

2005, and later, brought to light the excessive management bonuses being paid to VA 

officials while basic health care services for veterans were underfunded. Chairman 

Akaka was equally outraged at the Bush Administration's attempt to prohibit voter 

registration at VA facilities and led efforts to reverse this unfair policy as Chairman. 

As the National President of the largest federal employee union, I am especially grateful 

for Chairman Akaka's interest in the unique perspective our members lend to the 

legislative process, and his courageous efforts to protect the rights of all front line 

employees who risk their careers to speak up for veterans. I had the privilege of 

testifying before Chairman Akaka on VA health care and benefits issues, as did several of 

our members. Chairman Akaka understood so well that listening to front line 

employees is not only critical to workplace morale, but to ensuring that veterans are 

properly cared for. He also had great sensitivity to the hazards of whistleblowing. At 

the 2005 budget shortfall hearing, Chairman Akaka recounted all the examples he had 

solicited from our members on the front lines of VA health care to illustrate the harsh 

impact of short funding on the quality and access of veterans' care. He also always 

recognized the sacrifices of these whistleblowers. As he stated at the 2005 hearing, 

"[d]espite the tremendous pressure to keep quiet, VA's dedicated providers have been 

forthright about the fact that they [management] were raiding capital accounts just to 

make ends meet." 

AFGE is still fighting to protect the rights of whistleblowers, including a VA psychologist 

who has faced intense retaliation for her recent testimony. Chairman Akaka's eloquent 

remarks on the witness' behalf at that hearing, coupled with his steadfast commitment 

to work with Chairman Murray to protect her right to speak up for patients, have been 

invaluable in our efforts to protect all the brave employees who come forward. 

Thank you for the opportunity to testify. I will be happy to respond to any questions. 

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• PARTNERSHIP FOR PUBLIC SERVICE 

Written Testimony of Max Stier 

President and CEO 

Partnership for Public Service 

Prepared for 

The Senate Committee on Homeland Security and 

Governmental Affairs 

Subcommittee on the Oversight of Government 

Management, the Federal Workforce and the District of 

Columbia 

Hearing Entitled 

"Investing in an Effective Federal Workforce" 

September 19, 2012 
89 

Chairman Akaka, Senator Johnson, Members of the Subcommittee, thank you very 

much for the opportunity to appear before you today. I am Max Stier, President and CEO 

of the Partnership for Public Service, a nonpartisan, nonprofit organization dedicated to 

revitalizing the federal civil service and transforming the way government works. 

Let me first say, Senator Akaka, that I am honored to be here today to help you mark 

your final hearing as Chairman of the Oversight of Government Management 

Subcommittee. My colleagues and I have had the pleasure of working with you and your 

exceptional staff - in your personal office and on this subcommittee - since the 

Partnership was established eleven years ago. 

Even before you assumed a leadership role on this subcommittee in 2005, you 

distinguished yourself as a champion of better government, and a friend to the people 

serving in government. Building a world-class federal workforce is an immense 

challenge, and we thank you for your tireless work. While many do not consider federal 

workforce issues to be "sexy", they are absolutely critical to ensuring we have an 

efficient and effective federal government that delivers results for the American people. 

You have been a true hero for federal workers, and your leadership on key workforce 

issues - recruiting and hiring, manager training, Senior Executive Service (SES) reform, 

and telework, among others - has made a real difference. You have also helped shine a 

spotlight on the important contributions that federal employees make every day through 

your service as co-chair of the Congressional Public Service Caucus and sponsor of the 

annual Senate reoolution recognizing the first week in Mayas Public Service 

Recognition Week. 

Today, we have an opportunity to celebrate the significant progress that has been made 

to date and provide recommendations that we hope the next chair and ranking member 

of this subcommittee will champion in the 113th Congress. 

Progress on Refonn Efforts 

Reforming the Federal Hiring Process 

Our country faces vast challenges today, and the demands on our federal government 

are greater than ever. The Partnership was founded on the premise that good 

government starts with good people. In order for federal agenCies to effectively deliver 

on their missions for the American people, they rely on talented individuals to perform 

critical functions. Unfortunately, there are many barriers to attracting top talent to 

government today. Only 13 percent of college students say they are knowledgeable 

about federal opportunities and how to apply for them. For those who are aware of 

federal opportunities, the lengthy and cumbersome hiring process turns top talent away. 

Senator Akaka, you and former Senator George Voinovich recognized that in order for 

our government to compete for talent, the federal hiring process had to be fixed, and you 

made reform a top priority. In 2009, you introduced the Federal Hiring Process 

Improvements Act, which streamlined the federal hiring process and made it more userfriendly and transparent. The bill allowed applicants to apply with a traditional resume, 

rather than submitting lengthy essays, reduced the time to hire and required timely 

notification. It also called for better metrics to understand both applicant satisfaction with 

the hiring process and hiring manager satisfaction with the quality of new hires. The 

Partnership was pleased to work with you and Senator Voinovich on this bipartisan 
90 

legislation. This legislation passed the Senate and laid the ground work for the 

Presidential Merro on Improving the Federal Recruitment and Hiring Process, which was 

issued on May 11, 2010. President Obama's memo heavily reflected the reforms you 

and Senator Voinovich outlined in your legislation. 

We are happy to report that two years later much progress has occurred in federal 

agencies. The majority of agencies are now using resumes in the initial stage of the 

application process. Applicants are receiving more frequent and timely notification from 

agencies about the status of their applications. Hiring managers have also become more 

involved in the hiring process, which is increasing the quality of the hires made. 

Agencies are now collecting data to better understand time-to-hire and applicant and 

manager satisfaction with hiring outcomes. This data is posted pub/idy online at 

www.performance.gov. 

The administration has also taken significant steps to increase diversity in the federal 

government and increase the hiring of veterans and people with disabilities. President 

Obama issued Executive Orders addressing each of these issues. With respect to 

diversity, the FY2011 Federal Equal Opportunity Recruitment Program Report found that 

the representation of minorities in professional and administrative positions had 

increased by 3.5 percent and the number of women represented in professional and 

administrative positions had increased by 1.9 percent since FY2010.1 Agencies were 

also successful in hirirg 18,738 people with disabilities in FY2011, representing an 

increase in the percentage of new hires with disabifities from 10.3 percent in FY2010 to 

14.7 percent in FY2011.2 Finally, as a result of the President's Veterans Employment 

Initiative, the federal government hired 65,000 veterans in FY2011, representing 28.5 

percent of total hires. This is the highest percentage of veterans hired in over 20 years. 3 

We believe it is critical that the next administration, whether it is led by President Obama 

or Governor Romney, sustain these efforts and make hiring reform a priority. We 

encourage the next administration to maintain a focus on metrics and track progress 

real-time. In addition, we believe that talent management is a leadership responsibility; 

we encourage agencies to hold their executives accountable for recruiting and hiring, 

and to reflect this in executive performance plans. This subcommittee must continue to 

playa critical oversight role by holding hearings, as you have done, and by asking tough 

questions to ensure that the hiring process is more efficient and agencies are hiring the 

very best talent for the job. 

The Partnership will continue work with the next administration and Corgress to sustain 

and improve upon hiring reform efforts. We ultimately believe that in order to achieve 

true hiring reform, the underlying civil service laws must change, and we recommend 

later in this testimony that this be accomplished as part of comprehensive civil service 

reform. 

1 Office of Personnel Management, Federal Equal Opportunity RecrUitment Program Report for FY2011, 

httpllwww.opm gov/About OPM/reports/feorp/2011/feorp2011 pdf (accessed 14 Sept. 2012). 

2 Office of Personnel Management, Employment of People with Disabilities In the Federal Executive Branch 

Report FY2011, http Ilwww opm.gov/diversityandinclusion/reports/disability/DisabiIityReportFY11 07·24· F pdf (accessed 14 Sept. 2012). 

Office of Personnel Management, Annual Performance Report FY2011. February 2012, 

httpllwww opm gov/gpra/opmgpra/performance report2011 pdf (accessed 14 Sept. 2012) 

2 
91 

Recruiting and Hiring Students and Recent Graduates 

Cracking the federal job market is particularly difficult for students and recent graduates 

because it favors individuals with more experience, often putting young talent at a 

disadvantage when applying for federal positions. As a result, the Obama administration 

created three new Pathways Programs to help students, recent graduates and graduate 

students find internships and jobs in the federal government (Internship Program, 

Recent Graduate Program and Presidential Management Fellowship Program, 

respectively). The programs were laid out in President Obama's Executive Order 13562, 

Recruiting and Hiring Students and Recent Graduates, issued on December 27, 2010. 

The Partnership is pleased that the current administration has made the hiring of 

students and recent graduates a priority. The Pathways Programs are critical ways for 

agencies to identify high-performing talent by observing students and reoent graduates 

on the job. We were particularly pleased to see that the final regulations allow agencies 

to convert students and recent graduates participating in these programs to permanent 

positions, as long as they have satisfied the requirements of the program, there is a 

position available and the individual meets the qualifications for that position. This is a 

common-sense and cost-effective approach to building a talent pipeline for government, 

and is a strategy the private sector has utilized for years. Currently, the private sector 

converts 58.6 percent of interns into full-time hires.4 The federal government lags far 

behind, with only 6.2 percent of interns advancing to permanent positions in their 

agencies.s Hopefully, we will see significant change in this latter statistic under the 

Pathways Programs. 

The final regulations for the Pathways Programs went into effect on July 11, 2012. The 

regulations direct agencies to submit an MOU to the Office of Personnel Management, 

outlining how they plan to use the three programs. Unfortunately, only a handful of 

agencies have submitted their plans, and agencies can only implement the Recent 

Graduates Program if they have an MOU in place. However, they can currently 

implement the Internship Program and Presidential Management Fellows Program 

without an MOU but will need to have one in place by early January 2013. It is also 

challenging because even though the programs are being publicized, very few positions 

have been posted on USAJOBS.gov. As a result, while students may be hearing about 

the programs, they are unable to apply for them. OPM has been applying pressure on 

the agencies to submit their MOU's and get the programs up and running. 

The Partnership is also working with agencies to help them understand and implement 

the new Pathways Programs. This fall we are hosting a series of workshops and indepth group planning sessions that will assist agencies in addressing four key areas: 

program design and evaluation; recruitment and marketing; training and development; 

and assessment. We also plan to work directly with the Department of Health and 

Human Services to assess the effectiveness of the agency's student and entry-level 

programs and leverage the new Pathways Programs to fill current gaps and meet the 

agency's antiCipated hiring needs. 

4 National Association of Colleges and Employers, 2012 Intemship & Co-op Survey, April 2012, 4, 

http://www.naceweb.org/intern-co-op-survey/. 

5 Partnership analysis of the fiscal 2010 Enterprise Human Resources Integration-Statistical Data Mart 

(EHRI-SDM). provided by the Office of Personnel Management. 

3 
92 

We know it is challenging for agencies to conduct thorough and accurate workforce 

planning and anticipate hiring needs in the short term given current budget uncertainties, 

but we encourage agencies to utilize the Pathways Programs to the best of their ability 

since this is a cost-effective way to build talent pipelines. We also encourage this 

subcommittee to provide oversight and ensure that agencies are effectively 

implementing the regulations. The Pathways Programs are meant to supplement but not 

replace the traditional hiring process, and safeguards have been put into place to ensure 

that the programs are not abused. OPM, for example, has the ability to cap the number 

of individuals that can participate in the Pathways Programs in any given agency, thus 

limiting the number that can be converted, if they suspect abuse is occurring. This 

subcommittee can continue to monitor progress on program implementation and support 

OPM and the agencies in assessing the use and effectiveness of these programs in 

recruiting students and recent graduates. 

In addition to working with OPM and agencies to implement the new Pathways 

Programs, the Partnership will continue to work hard to educate the next generation 

about opportunities to serve in government through our Call to Serve program. Call to 

Serve is comprised of more than 760 colleges and universities and 80 agencies 

dedicated exclusively to promoting federal opportunities and ensuring that government 

has the talent it needs to succeed. As part of that effort, the Call to Serve Speakers 

Bureau has reached more than 20,000 students and job seekers. On average, interest in 

working for the federal government increased by 40 percent among students and job 

seekers who attended an event featuring one of our Speakers Bureau members. We 

have 41 speakers lined up to share their experiences in federal government with 

students across the country this fall. Finally, five agencies are working with the 

Partnership to implement Federal Student Ambassador programs this year. As part of 

this program, 36 former federal interns have returned to their campuses to promote 

federal opportunities to their peers, faculty and career advisors. 

Developing Leaders and Strengthening the Executive Corps 

At the other end of the spectrum, government's struggle to compete for experienced 

talent is especially troublesome when more than half of the members of the Senior 

Executive Service (SES) are eligible to retire and take with them a wealth of 

institutionalized knowledge and specialized expertise. With these departures, 

government has a unique opportunity to fundamentally rethink the way it develops 

leaders, hires and selects talent for the SES, and equips new members with the tools to 

be successful federal executives. 

Senator Akaka, we thank you for taking the first step in introdUCing legislation, the Senior 

Executive Service Reform Act, in March 2012 that begins to address many of the 

challenges facing our executive leadership corps. Your legislation contains a number of 

important provisions that will help restore career leadership, strengthen career 

development, improve executive pay and performance management and encourage 

greater diversity. We were particularly pleased to see that your legislation authorizes 

agencies to establish inter-agency, inter-governmental and inter-sector rotation 

programs. We believe this will promote greater opportunities for mobility among the 

SES, including between different sectors. We were also pleased that your bill requires 

OPM to create a centralized database of rotation and other developmental opportunities. 

The bill also codifies the Executive Resources Office, which has been established at 

OPM; in addition to collecting data about the current SES, the Executive Resources 

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Office is required to conduct an exit survey to better understand why executives are 

leaving. 

Mr. Chairman, despite your departure, we hope this subcommittee will take up similar 

legislation in the 113th Congress. The Partnership believes the bill can be strengthened 

with the addition of a few key provisions, many of which were added to the House 

legislation introduced by Representative Jim Moran in June 2012, H.R. 6042. These 

provisions require agencies to accept resumes in the initial stage of the application 

process, require agencies to evaluate vacant SES posrrions and reclassify them as 

Senior Level (SL) or Senior Technical (ST) if they are more technical in nature, and 

direct agencies to strengthen Canddate Development Programs (CDPs). Rep. Moran's 

bill also includes a provision that would hold executi~s accountable for dealing 

constructively with employee feedback. 

More importantly, however, the Partnership believes that any comprehensive SES 

reform bill should include a requirement that individuals have work experience in another 

agency, level of government or sector before being admitted to the Senior Executive 

Service. At a time when we require our leaders to work across boundaries, levels of 

government and sectors to solve complex issues, it is critical that we select executives 

who have a diversity of experience and perspectives from which they can draw. This will 

enhance their ability to apply innovative solutions to problems and adapt to changing 

environments. The Partnership made the case for mobility in a recent report written in 

partnership wi1t1 McKinsey and Company entitled "Mission Driven Mobility: 

Strengthening Our Government Through a Mobile Leadership CorpS.,,6 We also believe 

that the Office of Management and Budget (OMB) should playa critical role in ensuring 

that executive talent is adequately recruited, hired, developed and deployed to meet the 

high-priority goals of our nation. 

In addition to working with Congress on legislative reforms in the 113th Congress, the 

Partnership also looks forward to working with the next administration to sustain many of 

the good reforms already underway. In 2010, the President's Management Council 

(PMC), working with the Chief Human Capital Officers Council and in partnership with 

OMB and OPM, embarked on a cross-agency effort to improve the Senior Executive 

Service. The initiative focused on three key areas - recruitment and selection, 

performance management and career development. Three working groups were 

established to tackle these issues, and then, subsequent initiatives were launched to 

implement the working group recommendations. 

As part of this effort, the Partnership had the pleasure of collaborating with OPM and 

seven agencies, including the departments of Labor, State, Housing and Urban 

Development, Agriculture and Education, as well as the General Services Administration 

and Small Business Administration, on a pilot project to identify best practices in 

implementing a resume-based approach to hiring talent for the SES. At the conclusion of 

the pilot, the Partnership, with the benefit of input from the participating agencies, 

produced a workbook to help Executive Resources and hiring officials better understand 

the benefits of resume-based hiring and how to implement it effectively. 

6 Partnership for Public Service and McKinsey and Company, Mission Driven Mobility Strengthen Our 

Federal Government Through a Mobile Leadership Corps, February 29. 2012. 

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Other highlights of the SES reform initiative included the development of a model Senior 

Executive Service performance appraisal system. The new system provides a 

framework and common process for communicating expectations and evaluating 

performance, which can be used in ~encies across government. In addition, the career 

development working group inspired the creation of an interagency rotational program 

for GS 13-15s. With the launch of a third cohort in October, more than 100 federal 

employees will have participated in this program. A dozen agencies and several 

interagency councils have been invowed, with expected expansion in future cohorts. 

Finally, an executive onboarding model was created to help new executives make the 

transition to the SES. 

The Partnership encourages the next administration to continue to make SES reform a 

priority and build upon many of the good efforts already under way. We also urge 

Congress to pass SES reform legislation to ensure that agencies have the tools they 

need to effectively recruit, hire, onboard and develop executives, both career and 

political. Legislation should strengthen the executive corps so it is truly a mobile corps of 

leaders with management and technical expertise that works effectively across 

organizations and can be deployed to tackle new challenges as they arise. 

Agencies should also make an investment in developing leaders before they get to the 

SES, particularly leaders at the GS 13-15 levels, to ensure government has not only 

subject matter experts but also strong managers. The Partnership is pleased to support 

Senator Akaka's Federal Supervisor Training Act, which would expand training 

requirements for federal employees. As budgets continue to tighten, training line items 

are often among the first to be cut. The Partnership urges Congress to ensure that 

agencies have the funding they need to develop strong leaders and managers. This 

short-term investment will most certainly pay for itself over time. 

Workplace Flexibi/ities 

In order for government to attract and retain top talent. it must keep up with the changing 

workplace environment. A key to remaining competitive is fostering workplace cultures 

that promote greater work-life balance and better utilize and expand existing work-life 

programs and flexible work arrangements (e.g., compressed workweeks, flextime, parttime work, job sharing and telework). While workplace f1exibilities are a useful 

recruitment tool and provide benefits for federal employees, they also add significant 

value for the employing organization. Flexibilities such as telework generate cost 

savings, increase productivity and help retain top talent. 

Senator Akaka, we were pleased that you and Senator Voinovich successfully 

championed the Te/ework Enhancement Act, which was signed into law in 2010. Your 

legislation requires all agencies to institute telework programs and creates a framework 

for implementation that provides greater standardization across agencies, with the 

ultimate goal of increasing opportunities for telework. 

In June 2012, OPM issued a report7 on the status of telework implementation. Eightyseven agencies responded to their request for data in the fall of 2011. All of these 

7 Office of Personnel Management. 2012 Status of Te/ework in the Federal Government. June 2012, 

http Ilwwwtelework.gov/Reports and Studies/Annual Reports/2012teleworkrepo'1.QQf (accessed 14 Sept 

2012) 

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agencies had established telework policies and roughly three-quarters of the policies 

met the requirements of the Telework Enhancement Act at the time of the request. 

Additional/y, al/ of the responding agencies required to designate a Telework Managng 

Officer (TMO) to oversee these programs had either an acting or permanent TMO in 

place. All Executive branch agencies that responded to the data request and were 

required to notify their employees of their ability to telework had done so. 

This is great progress, and we urge this subcommittee to continue to work with agencies 

to ensure they have the tools and resources necessary to implement these reforms. The 

investments being made in implementing telework programs are actually generating 

significant cost savings in agencies. The Patent and Trademark Office (PTO), for 

example, estimates that their telework programs have led to savings well in the excess 

of $20 million a year through reduced need for office space, as well as increased 

revenue generated from additional patent applications reviewed and because of 

productivity gains. 

The Path Forward - Comprehensive Civil Service Reform 

While much progress has been made, the Partnership believes the federal civil service 

system must be modernized if our govemment is to deliver on its mission for the 

American people. Public perceptions of government are at an all-time low. Agency 

leaders are financially strapped and are being asked to accomplish more with fewer 

resources, forcing them to rethink the way government operates today. The federal 

workforce is under increasing pressure, with retirement rates up 25 percent last year and 

the nature of the work changing. Underlying all of this is an outdated civil service system, 

which was created decades ago and has not kept up with the changing environment. All 

of these factors combined present us with a unique, once in a generation opportunity to 

rethink the way government operates. 

The Partnership, in collaboration wth Booz Alien Hamilton, has recently embarked on an 

effort to design a management reform agenda for the next administration and Congress. 

A key component of suggested management reforms is reforming our nation's civil 

service system, and an affiliated project will be to further develop a roadmap for 

comprehensive civil service reform, to be released in spring 2013. We are engaging a 

broad group of stakeholders, including the federal employee unions, management 

groups, good government organizations, current and former government leaders, and 

private sector experts to hear their perspectives and solicit their input. 

Since the civil service reform effort just kicked off in late summer 2012, it is premature to 

share any recommendations. However, we imagine a comprehensive civil service reform 

agenda may address key issues such as hiring, pay and compensation, performance 

management and leadership development, since they are conSistently cited as areas in 

need of reform. 

Hiring Reform 

As previously discussed, this administration has made great strides on hiring reform, 

working within their administrative powers to streamline the hiring process and make it 

more transparent. However, the underlying civil service laws have not kept pace with 

changes in the workplace. In the August 2012 report, "Bracing for Change: Chief 

Human Capital Officers Rethink Business as Usual," written by the Partnership in 

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collaboration with Grant Thornton LLP, the consensus among the government's Chief 

Human Capital Officers (CHCOs) was that further progress in fixing the federal hiring 

system will require a re-examination of the underlying civil service law. For example, the 

concept of "excepted service" and "competitive service" and the differences between 

how jobs are filled under each category is cumbersome, confusing and outdated. 

Pay and Compensation 

The debate around federal pay and compensation continues to play out in the media and 

on Capitol Hill. Some believe federal employees are paid too much, others believe they 

are paid too little. The solution is not a simple one. What we do know is that the 1949-

era pay and classification system is outdated and doesn't meet the needs of the current 

workforce, which is dynamic and ever changing. Any changes to federal compensation 

need to be done thoughtfully and with the end goal of creating a compensation system 

that is market sensitive and enables the federal government to be competitive in its 

efforts to recruit and retain top talent. This will be particularly important in mission-critical 

fields involving science, technology, engineering, math and medicine (STEMM) 

positions. If a new system is designed, it will be crucial to be mindful of the impact that 

these changes may have on the current workforce. 

Performance Management 

The federal government needs a performance management system that makes 

employee performance expectations dear and one that employees understand and trust. 

Unfortunately, nearly every CHCO interviewed for the "Bracing for Change" report 

indicated that the current performance management system is not achieving its intended 

results. They cited several challenges, including managers not being as involved as they 

should be, lack of uniformity in performance appraisal across agencies and difficulty in 

rewarding high performers and disciplining poor performers. 

Leadership Development 

In effective organizations, people are the greatest asset. The federal government must 

invest in its people and ensure they have the proper training and d:lvelopment to 

effectively lead their agencies. In a time when we have to justify every penny we spend, 

it is important to take the long view and realize that strategic investment in the workforce 

now is an investment in the future. 

In summary, we believe this is a critical time for change - the public demands it, 

Congress demands it, our fiscal climate demands it. We need a federal government that 

will work better and smarter for the American people. To bring about this change, we 

need comprehensive civil service reform that will allow our federal government to recruit 

and retain top talent. The system should reward top performers and address poor 

performers. Ultimately, it should foster the development of good leaders and managers 

and ensure we are fostering a culture of innovation and performance in government. 

We will continue to worK with our partners to solicit their input and look forward to 

sharing our recommendations early next year. 

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Conclusion 

Mr. Chairman, Senator Johnson, Members of the Subcommittee, thank you again for the 

opportunity to testify today. Hopefully, my testimony has shed light on progress to date 

and has offered some thoughtful feedback for the future. The Partnership looks forward 

to continuing to work with this subcommittee on these important issues. Senator Akaka, 

we thank you again for all you have done on behalf of our nation's civil servants. You will 

be missed! 

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GOVERNMENT MANAGERS COALITION • FAAMA FMA NCSSMA PMA 

TESTIMONY 

of 

WILLIAM L. BRANSFORD 

General Council. Senior Executives Association 

and 

Representative of the 

GOVERNMENT MANAGERS COAUTION 

Before the 

SEA • 

SENATE SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT MANAGEMENT, THE 

FEDERAL WORKFORCE AND THE DISTRICT OF COLUMBIA 

"INVESTING IN AN EFFECTIVE FEDERAL WORKFORC£" 

September 19,2012 
99 

Chainnan Akaka, Ranking Member Johnson and Distinguished Members of the Subcommittee: 

Thank you for the opportunity to provide the views of the Government Managers Coalition 

(GMC) on the management challenges facing the federal workforcc and areas in need of reform 

and resource investment, I am here today as a representative of the GMC, which includes the 

Senior Executives Association, the Federal Managers Association, the Professional Managers 

Association. the FAA Managers Association. and the National Council of Social Security 

Management Associations. As you know, the GMCs executive and management professional 

associations represent over 200,000 executives and managers in the federal government. The 

GMC advocates on behalf of commonly held beliefs within the community of federal executives 

and managers regarding the fonnulation. implementation and execution of good governance and 

policies throughout the federal workforce. 

Before addressing the areas that the GMC would like to focus on for this hearing. I would like to 

take a moment to thank Senator Akaka on behalf of the GMC. The Senator has been a stalwart 

champion of the federal workforce and has consistently worked to help make the federal 

government more efficient and effective. It has been a pleasure to work with the Senator and his 

staff. His leadership on federal workforce issues will be sorely missed. although we wish him 

well in his retirement. 

As Senator Akaka and the Subcommittee have noted through this hearing, progress has been 

made on many workforce issues. but there is still more work to be done. In an era of diminishing 

resources (budgets and personnel). with threats of more to come. it is essential that federal 

managers and executives are given the tools to effectively manage the workforce. including a 

robust supervisor training program and fair personnel systems that encourage recruitment and 

retention for mission critical positions. In the following testimony I will highlight a few of the 

most pressing issues facing federal managers and executives. 

Areas in Need of Reform 

There are many areas where reforms. both big and small, would contribute to a more effective 

workforce. Federal managers and executives face a variety of challenges on a daily basis - from 

having the right tools to manage the workforce, to support from agency leadership, to outdated 

personnel systems. Many of the areas of needed reform will require Congressional consideration 

and the GMC stands ready to work with the Subcommittee on these issues. 

Senior Executive Service Reform 

The GMC as a group has not taken a stance on SES reform. However. this is one of the signature 

initiatives of one of the GMCs members the Senior Executives Association (SEA). SEA has 

long expressed concerns with the SES pay and performance management system and the 

disincentives that are beginning to appear that lead to recruitment and retention problems. 

SEA has several recommended areas for reform. These include proposals to restore career 

leadership. create a fairer and more transparent pay and performance management system, 

provide for training and continuing development of the SES. and ensuring diversity within the 

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SES. Making such reforms to the SES system will help all agencies recruit and retain thc best 

Senior Executives and ensure that they have thc necessary leadership to successfully accomplish 

the missions of their agencies. 

The Senior Executive Service is facing the same challenges as much of the federal workforce. 

Continuing anti-federal employee rhetoric. combined with cfforts to reduce performance awards 

and continued pay compression. have created difficulties with recruitment and retention. It is 

imperative that thc federal government has the necessary career leaders in place to operate 

government programs and to perform critical government functions. 

In order to create a more effective SES pay and performance management system. the Senior 

Executives Association is supporting legislation (S. 2249). sponsored by Senator Akaka. that 

would create needed reforms to the SES. These reforms include: 

Reforming career leadership by placing high-performing career executives in Assistant Secretary 

for Administration and other key positions requiring long-term experience at each agency. 

specifically, at the "Chief' level (e.g. Chief Human Capital Officer). These positions are now 

often rescrved for political appointces, as is the position of Assistant Secretary for 

Administration. which was formerly held by senior career employees in cabinet departments. 

SEA makes this recommendation because a) continuity in leadership and expertise during the 

transition from one Administration to another is needed, b) relatively short-term political 

appointees have limited ability to accomplish long-term agendas, and c) the positions SEA 

recommends be held by career appointees deal with critical human capital and agency 

operations. not policy-driven positions necessitating political appointments. Further, 

Administrations are not gaining the benefit they might from seasoned and accomplished career 

executives who know how to operate government programs and to pursue the agendas of their 

political leadership. 

Strengthening the pay and performance managemcnt systcm by including performance awards in 

a Senior Executive's "high three" annuity calculations. SEA believes that this provision would 

make the SES an attractivc career goal for the bcst applicants and will help assure a high quality 

future SES. SEA also supports the requiremcnt of transparency measures for ratings and 

performance appraisals. Agencies should be required to provide cach Senior Executive with 

notification of their rating and a written explanation if a lower rating is given than was 

communicated at the initial appraisal. 

Increasing diversity in the SES will pay dividends by producing a government led by executives 

who are even better able to respond to and provide services to all Americans. SEA believes this 

is achievable only through proper data, a strong pipeline, and-most of all-strong, central 

leadership on thc issue. 

Ensuring a strong focus on career development, for current Senior Executives and for those 

candidates in the pipeline. is the final proposal for the SES Reform Act. Building a pipeline of 

qualified candidates to the SES and creating a culture where continuing development for the 

duration of a Senior Executivc's career is the norm are important aspects of a strong SES systcm. 

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Unfortunately the commitment to both of these areas is uneven across the government. Some 

training and development opportunities do exist in the form of Candidate Development Programs 

(COPs). More attention needs to be given. howcver, to ensuring that Senior Exccutives receive 

continuing professional development throughout their careers. That includes specific "onboarding" programs (which may include, for example. executive coaching and/or a mentor for 

the first year), as well as attention to activities which can keep a career executive up to date and 

revitalized throughout his or her time in the SES. 

Hiring Reform 

There have been many discussions regarding reforming the hiring process and legislation has 

been introduced to do so. Discussions on reform have centered on the general hiring process as 

overly burdensome. opaque, and time consuming and a deterrent to the best applicants. Although 

the GMC has never taken a formal position on legislation, it does bel ieve that reform discussions 

are helpful if they identifY flexibilities available for managers and agencies to easily and quickly 

hire for mission critical positions. The GMC has supported provisions allowing agencies to reemploy annuitants and provide phased rctirement to cmployees eligible to retire. We believe both 

provisions arc critical to ensuring succession planning and knowledge transfer. These are also 

cost effective options for agencies to use in times of budget shortfalls. The GMC encourages the 

exploration of additional options for agencies to consider in ensuring they have the proper 

workforce to complete their missions. 

Areas in Need of Investment 

Supervisor Training 

A federal supervisor, whether in the General Schedule or the Senior Executive Service, is tasked 

with a multitude of responsibilities. Often supervisory employees are promoted based on their 

technical skills in a certain area, not their management capabilities. However. upon reaching a 

supervisory position, these employees must work within their issue area and take on the added 

responsibility of managing complex personnel systems, conducting performance reviews, and 

dealing with personnel issues, such as adverse action claims. Unfortunately, most employees do 

not receive initial or ongoing training in the areas critical to effective management. 

Current federal law (5 V.S.c. §412 I) requires that agencies. in consultation with the Office of 

Personnel Management (OPM), create basic training programs for managers. However, the 

statute contains little guidance on the types of training managers should receive, Jails to address 

how often trainings must be conducted, and does not provide any data collection or funding 

mechanisms to ensure required trainings are taking place. It is often the case that agencies 

designate training as one of the first items to be cut when funds are scarce. 

While training might be viewcd as expendable and an intangible benefit. the GMC believes that 

supervisory training is absolutely critical to the success of the federal government in achieving 

its mission. In several reports, the Merit Systems Protection Board (MSPB) has examined a 

range of issues, from managing employee engagement to addressing poor performers. In each of 

these reports, the MSPB recommended that increased training for supervisors is necessary to 

address these issues. 

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It has been the experience of our collective organizations that some employees wait over a year 

after receiving a promotion to a supervisory position before receiving any initial training. Many 

managers and executives also note a culture within their agencies that discourages employees 

from taking time off to complete training courses and a lack of funding available for such 

trainings. This lack of prioritization in the critical area of leadership development leads to 

employee dissatisfaction, increased personnel cases, and diminished government performance. 

In order to address these issues, the GMC has long proposed strengthened requirements for 

supervisory training. We have worked with Senator Akaka to craR: the Federal Supervisor 

Training Act (S. 790) to require that managers and supervisors be provided initial training within 

one year of promotion to a supervisory position followed by mandatory training updates every 

three years. The legislation contains three primary training components vital to the success of 

agency missions: basic supervisory training. mentorship training. and training focused on 

prohibited personnel practices including collective bargaining and anti-discrimination rights. In 

addition, the measure includes an accountability provision to establish competency standards to 

ensure the training is conducted effectively and requires OPM to collect data on agency training 

programs. 

Some progress has been made on this issue over the last two years. OPM issued more robust 

regulations directing agencies to provide supervisor training and many agencies have developed 

more comprehensive programs. However, this progress is uneven across the government and 

there is no enforcement mechanism to ensure that training is prioritized when budgets are cut. 

The GMC continues to believe that legislation is necessary to place needed emphasis on this 

issue and to ensure that proper investment into training is made. 

Retirement Backlog 

Over the past year the GMC has grown increasingly concerned with the existing retirement 

backlog at OPM and its potential to grow. Given the increased use of early retirement authority 

and the potential changes to retirement benefits being considered by Congress. the GMC expects 

that many supervisors. managers, and executives will choose to retire over the next year. We fear 

this will compound the retirement processing problems which OPM is already struggling to 

address. 

OPM has made progress in addressing the current backlog and the GMC applauds these efforts. 

However. much remains to be done. It is the experience of GMC members that backlogs persist 

and that it can still take six months before a newly retired employee receives a full annuity 

check. In addition, our members have experienced a lack of clear communication regarding preretirement application inquiries, the payment process. interim pay status that can range from 40-

60 percent of the full annuity, and difficulty obtaining information on the status of their 

payments. 

We know that OPM is aware ofthesc issues and is working to address them. We also understand 

that the process of determining and finalizing annuity payments is complex and often dependent 

on individual circumstances. Added to this is an outdated, virtually non-existent, technological 

system for processing annuities. The GMC has proposed to OPM several measures that it 

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believes will help ease some of the backlog and can serve as interim measures while OPM 

addresses broader problems with the system. Specifically. GMC suggestions include: 

• In most instances. the retirement process should start when an employee first joins the 

civil service. Employees should be made aware they should keep records of standard 

forms. awards received. transfers to new agencics. etc. A one or two page primer should 

be included with onboarding materials for all cmployecs. 

• Many federal agencies have failed to be proactive regarding employee retirement. OPM. 

in conjunction with individual agencies, should prepare a standardized pre-retirement 

seminar that could be available on video or webinar to address the retirement process and 

the completion of applications. 

• When employees declare their intent to retire, they should receive a standardized 

checklist, a list of common problems that can delay the processing of the application. 

FAQs (contact numbers, what to expect in the process. etc.). and a list of forms that might 

need to be updated (beneficiaries. life insurance, etc.). They should also be reminded that 

it takes time for former agencies to pull their records because most of them are in paper 

form, and that the employee should make sure the request has been made to receive those 

records. 

• OPM should ensure that materials provided to employees, as well as the process itself. 

are simplified to the greatest extent possible. 

• Fact sheets with a list of common errors and more complex issues should be developed 

and made available as publications. 

• OPM should oversee the development of standard guidance to which all agency 

retirement benefits specialists would have access. This should be posted on OPM's 

website. Alternatively, OPM could consider creating a retirement.gov website (similar to 

tclework.gov or hru.gov) where materials are posted for employees and for benefits 

specialists. 

• It would be in OPM's best interest to make use of federal employee organizations. such 

as the member groups of the GMC, to disseminate information on retirement materials. 

backlog updates, etc. Regular communication would help to ensure employees feel they 

are being kept up to date on what to expect when entering into retirement. 

OPM should provide retirees with a PIN to access their online accounts prior to a final 

determination of benefits being made. Updates on employee status should be available 

online. much as is being done for job applicants on the USAJobs website. This would 

relieve the OPM staff of the time consuming duty of returning phone calls. and help put 

retirees' minds at ease. 

The GMC also understands that OPM is working under the same constraints as other federal 

agencies - limited funding and personnel to direct at this issue. Resource investment is necessary 

ifOPM is to be able to truly tackle the outstanding problems with the retirement processing 

systems. 

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Management Challenges Facing the Federal Government 

While the issues outlined above are of great concern to the GMC, there are a variety of broader 

management issues that the GMC has identified. 

Labor-Management Forums and Consultation Rights 

Of continuing concern to the GMC is the ongoing exclusion of management associations from 

agency forums. 5 C.F.R. Part 251 allows agencies to create a framework to consult with and 

communicate with non-labor organizations representing federal employees. While the regulation 

docs not require agencies 10 include management associations in forums. the GMC believes that 

such inclusion leads to increased effectiveness when all stakeholders are brought into the 

decision-making process. 

SEA and FMA currently have seats at the National Council level. However. this does not 

necessarily translate into representation at lower level forums. Furthermore, management 

associations that are not represented at the nationalleve! within their respective agencies have 

been effectively blocked from having a voice on agency-level and local forums. 

Management associations and the employees they represent can play an important role in 

ensuring the success of agency labor-management forums. Although management associations 

do not speak for agency management. they do represent the perspective of first and second line 

managers who serve as a critical conduit between unions and agencies. First and second line 

managers and career executives are important stakeholders in many decisions that are made as a 

result of to rum discussions and are also directly affected by the issues addressed in those forums. 

The GMC would like to see broader inclusion of management associations in labor-management 

forums and continues to look for ways to work together toward more effective agency, 

management and labor initiatives. 

Attritioll, Hiring Freezes 

While the GMC appreciates the need to consider all avenues to reduce the deficit, continued 

hiring freezes, combined with looming proposals to shrink the federal workforce through 

attrition, create difficulties tor federal supervisors in effectively managing the workforce and 

ensuring program goals are met. 

We are primarily concerned that enacting proposals promoting a government-wide workforce 

reduction or hiring freeze absent a comprehensive strategic plan will severely impede agencies' 

efforts to maintain proper staffing levels based on their established missions. Plans such as these 

fail to account for the services agencies provide to taxpayers and the personnel levels necessary 

to effectively provide such services. Agencies that have direct contact with the general public. 

such as the Internal Revenue Service, Social Security Administration and the Department of 

Veterans Affairs, rely heavily on staff to provide needed assistance at a time when American 

citizens are demanding more from their government. As you know, federal programs assist 

Americans in myriad ways, from food inspection and cancer research, to law enforcement and 

transportation safety. A reduction in the size of the federal workforce COli Id well amount to a 

reduction in vital services Americans expect on a daily basis. 

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Past efforts to reduce the civil service carried out during the Clinton administration resulted in an 

immediate deterioration of service to the public. leading to the hiring of contractors to make up 

for lost work. The negative impacts of those cuts on the remaining managers and the ability of 

federal employees to meet critical missions have been long-lasting. and many agencies are still 

tackling increased workloads stemming from the civil service cuts in the 1990s. An independent 

review of the cuts in the '90s reported that due to the reductions-in-force and the lack of 

corresponding workload cuts. the federal government hired hundreds of thousands of contractors 

to complete the work left behind by the dispatched federal employees. Ultimately, neither the 

cost nor the true size of the actual federal workforce (including contractors) shrank during this 

time. 

We are further concerned that efforts to arbitrarily cap or cut the size of the federal workforce 

fail to account for agency programs that are mandated by Congress. Agencies do not have the 

authority to change programs or realign priorities when the workforce is reduced. However, 

when agencies are granted flexibility to cut specific programs. budgets and personnel can be 

reduced accordingly. In order for Congress to reduce the deficit in a sensible manner, agency 

programs and staffing levels should be evaluated on a program-by-program basis with 

duplicative programs and processes receiving the most attention. Congress can then provide 

agencies the flexibility to reallocate resources. including personnel. to effectively carry out the 

programs which are funded. Neglecting to do so could result in waste and inefficiency. 

exacerbating the very problems attrition proposals claim to address. 

The GMC is concerned that efforts to shrink the federal workforce without strong planning and 

implementation goals will create lasting challenges and is not the way to ensure that the 

government functions in a business-like manner. 

Doing More with Less 

The federal government is faced with increasingly complex problems and mandates. Senior 

Executives. federal managers, and the federal workforce as a whole are being asked to do more 

with less. As agency budgets arc cut or agencies operate under continuing resolutions, the 

programs and missions that agencies must meet do not change. Furthermore. continuing pay 

freezes, potential changes to retirement benefits. and anti-federal employee rhetoric have created 

recruitment and retention challenges. At the management and executive levels. approximately 

half of the workforce is eligible to retirc. 

The attention to these problems and the investment to address them is often uneven. Instead of a 

race to the bottom where the federal government's resources are cut in a manner so that it cannot 

effectively do its job, the GMC would like to see the necessary conversation about the priorities 

of the federal government, what resources each agency needs to carry out its mission and the 

tools that the federal workforce needs to be effective. 

The Government Managers Coalition looks forward to sharing the experiences of its members 

and its suggestions in the areas of reform and resource investment as conversations occur both 

inside and outside of Congress. We thank you for the opportunity to raise our concerns and look 

forward to the continued dialogue that stems from this hearing. 

8 
106 

Post-Hearing Questions for the Record 

Submitted to the Houorable Jobn Berry, Director oftbe U.S. Office of Personnel 

Management 

From Senator Mark Begicb 

"Investing in an Effective Federal Workforce" 

September 19,2012 

1. As you know, Federal annuitants in the Non-foreign Areas (Alaska, Hawaii, and U.S. 

territories) who retired between 1994 and 2009, were not covered by the Federal 

Employee Pay Comparability Act of 1990. The Non-foreign Area Retirement Equity 

Assurance Act of 2009 only covers employees who were employed by the Federal 

government after January 1,2010, and with duty station in Alaska, Hawaii and the U.S. 

territories. Would the Office of Personnel and Management, Retirement Operations, 

please provide me with the number of annuitants or survivors, who retired in Alaska, 

Hawaii and the U.S. territories between the years of 1994 and 2009? Please also break 

out the numbers by type of retirement (CSRS, CSRS Offset, FERS, FAA, and any other 

applicable retirement plan), as well as the annuitant's retirement grade. 

Notes about the data source 

Data from ... 

• FY2010 and later pulled from OPM's Enterprise Human Resources Integration Statistical Data Mart (EHRI-SDM). 

• FY2009 and earlier pulled from OPM's Central Personnel Data File (CPDF). 

Coverage is limited to Federal civilian employees with the following inclusions or exclusions: 

Executive Branch exclusions: 

• U.S. Postal Service 

• Postal Rate Commission 

• Central Intelligence Agency 

• National Security Agency 

• Defense Intelligence Agency 

• National Geospatial-Intelligence Agency 

• Office of the Director of National Intelligence 

• White House Office 

Legislative Branch Inclusions: 

.. Government Printing Office 

• U.S. rax Court 

• Dwight D. Eisenhower Memorial Commission 

• Financial Crisis Inquiry Commission 

Judiclal Branch exclusIons: 

• Entirely excluded 

• Office of the Vice President 

• Foreign Service Personnel at the State Department 

• Tennessee Valley Authority 

• Board of Governors of the Federal Reserve 

• Public Health Service's Commissioned Officer Corps 

• Non-appropriated fund employees 

• Foreign Nationals Overseas 

• Ronald Reagan Centennial Commission 

• Medicare Payment Advisory Commission 

• U.S. - China Economic and Security Review Commission 

• U.S. Commission on International Religious Freedom 

The above represents current coverage and is subject to change over time. 
107 

2011 . 

• The Federal Bureau of Investigation did not report data on personnel actions until FY2007 . 

• The State Department stopped providing data on Foreign Service Personnel in March 2006. 

More information about our data sources can be found at http://www,opm.govjfeddata!guidance,asp 

Notes about your request 

Counts include nonseasonal full-time permanent employees - from October 1, 1994 through September 30, 2009 

EXHTTIVE BRAXCH RETlRE'IEXTS OF "SFTP FEDER<\L CIVILIAN 

EMPLOVEES VVS 1994 THROVGH 2009 

TERRITORIES 322 462 400 512 321 269 477 ! 82 238 275 352 283 294 288 269 227 

1,000 

900 

800 

700 ..... - .. ---. •. --.-.. --.. -.. ---.-.-----------.... --.-.--/ 

600 

500 

400 

300 

100 

---ALASKA 

-HAWAII 

us TERRITORiES 
108 

EXHTTIVE BRA"CH RETlRE\IE"TS OF "SFTP FEDERAL ClYlLl·\" 

EM PLOYEES - FYS 1994 TO 2009 

FYI994 FYl995 FYI996 FYI997 I FYl998 FY 1999 I FY2000 FY2001 

ALASKA 

CRSR 375 349 226 202 1296 lSI 152 194 

i 

FERS 54 50 53 50 ! 73 60 78 80 

I FSPS I I 2 I 12 I 

1 OTHER 2 I I I 

430 401 280 254 ! 369 213 i 230 274 

i 

HAWAII 

CRSR 626 397 646 446 

1

401 469 1419 

1

395 

I FERS 41 68 40 62 176 86 1

90 78 I 

I FSPS 3 5 3 15 i 1

3 1 

I 

OTHER I I I 

I 

670 470 689 508 1

482 I 556 i 512 474 

I US TERRITORIES 

CRSR 293 411 328 413 1

238 179 

1

342 127 

IFERS 29 50 71 99 180 

I ! 89 : 1'4 I 0 52 

, FSPS I I 

1

3 I II 13 

I I 1 OTHER 322 462 400 512 1 321 269 477 182 I 

FY2002 

162 

83 

245 

363 

I 106 

2 

471 

178 

60 

238 
109 

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009! 

ALASKA I 

CRSR 234 186 210 201 ]80 200 135 I 

FERS 101 85 122 122 165 193 163 

FSPS I 

OTHER 

335 271 

1

332 323 346 393 298 

HAWAII 

CRSR 487 457 479 371 651 338 205 

FERS 135 135 122 182 210 212 149 

FSPS 3 2 3 I 5 

OTHER 1 

625 594 604 554 866 550 

1

354 

US TERRITORIES 

CRSR 194 236 177 181 153 143 113 

FERS 77 115 106 113 135 126 114 

FSPS 4 . I 

I 

3 

OTHER 275 352 283 294 288 269 227 
110 

EXECUTIVE BRANCH RETIREMENTS OF NSFTP FEDERAL CIVILIA"I 

EMPLOYEES - FYS 1994 TO 2009 

ALASKA: 

FY ! FY FY FY FY I FY FY 

1994 1995 1996 1997 1998 i 1999 2000 

GS/GM/GG/GH •• 1 [ , 

01 i 

, I' ! ! 

02 I I I I I 

03 , 1 

: I 

04 5 i 5 5 5 3 /5 5 

05 20 1'7 13 13 16 112 II 

06 8 

1

15 12 7 14 1 9 8 

07 120 I 19 16 7 12 114 8 

08 4 17 3 2 2 II 3 

! 

09 29 20 21 22 32 I" 10 

10 4 17 3 6 2 12 2 

i 

11 58 145 41 24 43 [22 i 25 

, 12 66 1

52 43 31 50 1

25 135 

13 69 

1

52 22 25 30 117 15 

14 31 123 12 8 7 112 5 

15 21 6 5 4 9 12 

i 

'2 

OTHER XX 

I PAYPLANS 

1

95 1132 83 99 146 179 101 i 

430 1401 280 254 369 

1

213 230 

FY 

2001 

1 

7 

I 

II 

14 , 

11 

2 

16 

5 

30 

31 

23 

3 

I 

119 

274 
111 

FY I FY FY FY FY I FY FY FY 

2002 J 2003 2004 2005 2006 i 2007 2008 2009 

GS/GM/GG/GH ** +--~ 

I I 

01 

I I 

02 

1 I 

03 11 I I I 

04 4 ,5 4 4 I 14 3 I 

i 

05 4 i 17 4 14 5 14 8 8 

I J 

06 7 115 5 10 8 113 12 9 I 

07 10 19 11 10 10 i 18 14 18 

08 2 7 4 I 5 5 7 5 J 

I i 

09 12 20 21 22 27 117 117 15 , 

10 1 17 I 3 7 

1

3 2 8 

11 37 

1

45 33 39 42 p7 46 44 

12 27 i 52 40 48 48 ! 48 42 39 

13 17 

1

52 22 18 ,29 1 ", ~- 29 18 

14 7 1

23 9 12 15 14 11 6 , 

15 10 !6 2 7 6 16 

I 5 

OTHER , XX 

PAYPLANS 107 132 115 144 1119 1152 197 126 

i 

245 401 271 332 323 

1

346 393 298 
112 

HAWAII: 

FY FY FY FY FY I FY FY FY 

1994 1995 1996 1997 1998 I J999 2000 2001 

GS/GMIGG/GH ** 

I 

J 3 I 

OJ 

I I 

02 II II J 

03 12 5 6 7 2 J I 

04 26 9 J5 10 J6 13 5 8 

I i 

05 36 41 21 32 42 

1

57 24 22 

i 

06 26 

1

31 24 23 20 

1

30 14 15 I 

07 138 i 25 31 33 28 1

30 20 23 

08 12 [8 9 II 9 4 5 7 

09 52 '39 33 36 37 '45 

! 

23 33 

10 9 9 4 12 4 2 3 9 

11 63 i 57 56 42 43 , 49 5] 38 

i I 

12 77 '66 71 i 56 61 148 65 60 

I 

13 42 132 39 19 31 ! 28 39 45 

i 

14 21 12 13 10 12 I II 13 17 

I 

15 6 14 10 12 6 15 4 4 

OTHER XX 

1 13 ] PAYPLANS 260 357 204 123] ]70 245 19] 

I 

670 i 470 689 508 482 

1

556 512 474 
113 

FY I FY FY I FY FY : FY FY FY 

2002 I 2003 2004 I 2005 2006 I 2007 2008 2009 

GS/GM/GG/GH ** 1 I ! 

01 I 

I I 

02 i 1 I i 

03 2 2 4 3 1 3 

04 7 115 9 7 7 II 6 3 I 

05 33 i 43 19 29 ?' -" I '3 I" 15 14 

06 15 23 31 21 24 38 17 16 

07 28 41 36 33 27 1

38 ,9 16 

08 , 11 114 10 11 13 115 10 2 

09 25 41 41 31 37 37 20 14 

10 6 [I 3 8 10 [6 I 2 

11 50 153 56 58 42 60 39 21 

12 47 1 92 92 82 73 i 115 50 34 

13 45 140 56 48 55 54 38 10 

i 

14 10 118 19 31 14 : 21 

I 

12 4 

15 8 

1

5 8 9 12 1

10 5 3 

OTHER XX i PAYPLA~S 184 i 236 210 236 214 '427 325 215 , i 

471 1 625 594 604 554 ! 866 550 354 

i i 
114 

U.S. TERRITORIES: 

GS/GMIGG/GH ** 

OTHER 

PAYPLANS 

01 

02 

03 

04 

05 

06 

07 

08 

09 

10 

II 

12 

13 

14 

15 

xx 

3 

FY 

1994 

II 

21 

8 

16 

9 

22 

4 

24 

29 

22 

12 

I 

I 

FY 

1995 

15 

41 

, 14 , 

31 

, 12 

I 

1 30 

3 

36 

64 

i 24 

10 

,4 

i 

140 1176 

322 

7 

FY 

1996 

31 

11 

14 

12 

28 

3 

25 

28 

26 

2 

211 

400 

FYIFYIFY 

1997 i 1998 i 1999 

2 

4 2 

14 7 

25 27 

16 14 

28 31 

7 3 

33 18 

2 3 

48 35 

37 24 

17 6 

4 6 

, 

5 I 

1 

117 

113 

J 

!6 

1 

! 21 

J 

13 

I 

'2 I 

271 139 /119 

512 321 1269 

FY FY 

2000 2001 

3 

4 5 

30 13 

20 11 

16 14 

8 8 

32 13 

7 6 

34 23 

35 16 

10 17 

7 8 

4 

267 , 

, 46 

182 
115 

FY I FY FY FY 1 FY FY FY FY 

2002 1 2003 2004 2005 i 2006 2007 2008 2009 

GS/GM/GG/GH ** I 1 [ I 

! 

01 I 1 12 ! , 

02 I I 

03 2 11 4 2 11 1 2 

i i 

04 9 

1

6 5 3 3 1

6 5 6 

05 25 122 29 17 15 

1

9 23 I 13 , I 

06 12 122 21 16 12 i 20 10 6 

07 20 I 31 30 17 24 119 18 20 I I 

08 110 !4 6 17 14 [14 12 11 

\ 

09 22 ; 25 36 22 15 113 17 14 ! I 

10 I 14 4 6 5 12 2 I 

i 

11 30 

1

39 57 32 44 157 30 20 

12 13 

1

25 38 41 40 /36 37 19 i 

13 12 122 25 22 32 ! 18 16 18 

14 6 15 5 9 12 ! 10 4 7 

L 

IS 2 II I 7 1 I I 4 

OTHER XX 

168 1

89 

1

PAYPLANS 74 74 75 81 93 86 

I 

238 1275 352 283 294 • 288 269 227 

I ! 
116 

INTERNA TIONAL FEDERATION OF 

PROFESSIONAL AND TECHNICAL ENGINEERS 

AFL-CIO & CtC 

Statement for the Record 

International Federation of Professional & 

Technical Engineers 

(IFPTE), A FIreI 0 

Prepared For: 

Senate Subcommittee on the Fedenll Workforce and the 

District of Columbia 

Hearing: 

"Investing in the Federal Workforce" 

Wednesday, September 19,2012 - 2:00 p.m. 

628 Dirksen Senate Office Building 
117 

Statement Submitted by the 

International Federation of Professional and Technical Engineers, AFL-CIO, CLC 

The International Federation of Professional and Technical Engineers (IFPTE) would 

like to thank Chairman Daniel Akaka for holding today's important hearing. IFPTC is 

submitting the tollowing statement and respectfully asks that it be made a part of the hearing's 

official record. 

IFPTE is labor union representing upwards of 90.000 highly skilled professional and 

technical workers in the private. federal and public sectors throughout the United States and 

Canada. Included in Ollr membership are tens of thousands of federal employees. including 

workers employed by the Navy, the Tennessee Valley Authority (TVA). the Social Security 

Admini>tration (SSA). the Army Corps ofCngineers. the Government Accountability Office 

(GAO). the Department of Energy (DOC). the Executive Office of Immigration Review. the 

National Oceanic and Atmospheric Administration (NOAA). the Bureau of Reclamation. the 

Defense Logistics Agency (DLA). the Conf,'fessional Research Service (CRS). and NASA, 

The subject matter oftoday's hearing is inl'l!Slillg in the Federa! Work/bree. Today also 

marks the last hearing to be held by this Subcommittee under the stewardship of Chainnan 

Akaka. As we all are well aware. Senator Akaka is retiring at the conclusion of this Congress. 

It is with this in mind that IFPTE would like to reflect on Senator Akaka's stellar career in the 

Congress. his leadership over many years in support of federal employees. and his vision for 

ensuring that our tederal workfbrce remains the best in the "orld. 

Obviously Senator Akaka understands the importance of investing in the federal 

workforce. This is reflected in the many bills he has sponsored that are geared towards 

maintaining and enhancing our highly skilled civil servant workforce. Tv\o bills in particular 

stand out: one to create labor/management partnerships in government agencies and the other 

calling fbr a comprehensive training program geared toward both labor and management at all 

government agencies. Indeed. it is with Chairman Akaka's support. and buoyed by these two 

bills. that ,vc now have labor/management partnership relationships in most government 
118 

agencies. Speaking in support of partnership las1 year at an October 11"'.2011 hearing before 

this committee. Chairman Akaka said that. "Employees are in the best position to inform 

executives about the details of operational problems or inefficiencies. In addition. labormanagement partnersh ips improve employee morale. wh ich also helps drive better 

performance" IFPTE could not agree more. 

A real time example of the value ofpartnership is best illustrated by looking at the Pearl 

Harbor Naval Shipyard in Chairman Akaka's home State of Hawaii. where the Senator has 

worked closely with the members of IFPTE Local 121. and the Hawaii Metal Trades Council. 

Th is includes his backing of the labor backed. and management adopted Moonsh ine program 

wh ich has enabled the Navy to save hundreds of millions of dollars over many years. 

Senator Akaka has also pushed the federal government to look long into the future and 

create a hiring plan that will ensure that the needsofthe taxpayers\\ill continue to be met. For 

example. two years ago. in 2010. Chairman Akaka held a hearing taking a look at the federal 

government's strategic hiring plan. This is an issue that is near and dear to IFPTE. as the 

government is facing an impending wave of federal retirements trom the baby boomer 

generation. with a potential skills gap that could result without a well-developed strategic 

human resources plan. IFPTE applauds Senator Akaka for taking this issue on. as our union 

believes that it is th is t)pe of strategic vision and plan that is lacking at agencies such as N A SA. 

It is IFPTE's position that government agencies like NASA have a long way to go in developing 

a plan that will enable them to compete for the bes1 and brightes1 \\orkers oftomorf(m. IFPTE 

is hopeful that the next Chairperson of this Subcommittee will take the baton from Senator 

Akaka in taking a close look at the potential skills gap that could result in agencies across our 

government from the wave of retirements we expect over the next several years. 

When it comes to training. IFPTE. and many other labor organizations. have been 

arguing for years that there is a great need to not only properly train rank and tile federal 

workers, but there is an equally important need to train management. Here again Senator 

Akaka has shared IFPTE's views. Back in 2009 the Senator authored S. 674. the Federal 

2 
119 

Æ 

Supervisor Training Act. This legislation was ultimately embraced by the Office of Personnel 

Management (OPM) when they called on government agencies to adopt many of the supervisor 

training criteria called filr in the bill. Those same recommendations were also approved b) 

Congress as a part of the National Defense Authorization Act of 2010 and are now being 

implemented by the Department of De tense (DoD). 

Since this is his last hearing IFPTE would be remised if we did not take this opportunity 

to say a word about the Senator's great leadership in ultimately repealing the in famous National 

Security Personnel System (NSPS). It is an understatement to sa) that Senator Akaka was the 

loudest and most active critic ofNSPS. as evidenced by him being one of on 11' three Senators 

back in 2003 to vote against th is egregiolls attack on the civilian workers ofthe DoD. Much to 

his credit. it took Senator Akaka abollt one second to realize that ideologically driven 

opportun ists were ,tripping federal workers employed at DoD of their rights under the !,'liise of 

'national security: However, it took us much longer. eight years, to get it repealed. an 

accomplishment that would not have been possible without Senator Akaka's leadership. 

That said. it is important to remember a few more things about Chairman Akaka: He is 

the nation's first Senator of native Hawaiian ancestry. a veteran of World War II having served 

in the U.s. Army and a tC)fIner public sehool teacher and principle. Senator Akaka has served 

the citizens of Hawaii in Congress since 1976 when he was originally elected to the House of 

Representatives. The Senator served in the I-louse until 1990. \vhen the voters of Hawaii 

elected him to the Senate. where he has been ever since. 

Alter such a long and distinguished career serving our nation. IFPTE \vould like to end 

this statement with this simple. yet heartfelt note to Senator Akaka: Mahalo !lui loa.