Civil Service Reform Struggles

August 9, 1996

THE DAILY FED

Civil Service Reform Struggles

A civil service reform bill that would make performance count more than seniority during layoffs is fighting for life in Congress. The bill passed out of the Government Reform and Oversight Committee July 25, but ran into snags on the way to a floor vote. To win bipartisan support for the measure, its chief Republican sponsor, Civil Service Subcommittee Chairman Rep. John Mica, R-Fla., had to strip out his provision to streamline the federal discrimination complaint process. Negotiations over amendments that threatened to weaken the effect of the performance section slowed the bill's House progress.

In addition, the measure faced skeptical Senators who reportedly oppose the plan to raise the cap on Thrift Savings Plan investments from 5 percent or 10 percent of salary a year to $9,500 annually, the limit on contributions to private sector 401k plans. Some Senators, along with the Treasury Department, oppose raising the investment cap because it would give highly paid federal employees a tax break and would reduce tax revenues, unpopular outcomes during an election year.

Other provisions would expand the number and size of agencies permitted to lift pay, job classification, performance ratings and other personnel rules in demonstration projects. The measure also would extend life and insurance benefits for laid off employees, provide $10,000 per worker for retraining, relocation health and other job-finding aid, and allow those facing layoffs have job tryouts at other agencies.

A provision in the House bill creating two new thrift plan investment funds is similar to a bill proposed by Sen. Ted Stevens, R-Alaska. That could improve the prospects for the plan, which would add a Small Capitalization Index Fund and an International Stock Index Fund.

Meanwhile, the Brookings Institution has come up with a new plan for the civil service. Civil Service Reform: Building a Government That Works, a new Brookings book, suggests the current system is too slow-moving and creaky to adapt to today's performance and flexibility focus.

The gap between what's being asked of government and its employees' skills can only be closed by focusing on people according to the book. It recommends redesigning the Office of Personnel Management to promote high performance, building flexibility and accountability into government and federal contracting, caring less about who does government's work and more about how it's done, creating a mobile core of skilled generalist managers with broad experience, and cultivating a spirit of public service.