News Briefs

THE DAILY FED

News Briefs

The following news summaries are from OPM AM, the daily newsletter of the Office of Personnel Management. OPM AM is available on OPM Mainstreet, the agency's electronic bulletin board, at 202-606-4800.

LOCALITY PAY EXTENDED TO SENIOR EXECUTIVE SERVICE AND OTHERS--"Locality-based comparability payments, known as locality pay,' have been extended for 1997 to members of the federal government's Senior Executive Service, to administrative law judges, and other categories of federal employees" (December 6, OPM News Release).

THE FEDERAL DIARY--"December is one of the most popular months to retire. It also is the month before cost-of-living adjustments (COLAs) take effect for federal retirees....Every year about this time, workers who are about to retire call, asking why we don't point out that after drawing a salary all year, savvy bureaucrats can, by retiring in December, cash in on the January COLA....It's a fascinating concept and would make a nice, consumer-friendly story, But it isn't true" (Monday, The Washington Post). "Unions representing federal workers hope their total commitment to President Clinton's reelection will be reflected in a fed-friendly budget next month. If however, the second-term blueprint squeezes feds, it would be a kick in the teeth for union leaders. That could translate into a pain in the wallet-carrying region of the typical fed--union member or not" (Sunday, The Washington Post).

STILL TO GO--"Last week President Clinton began filling the seats in his second-term Cabinet, starting with his foreign policy team. Clinton has five Cabinet positions to fill. More announcement could come this week" (Monday, The Washington Post).

U.S. BANS LIMITS ON H.M.O. ADVICE IN MEDICARE PLAN--"Wading into a furious debate, the Federal Government said today that health maintenance organizations and other health plans may not limit what doctors tell Medicare patients about treatment options. The new policy was set forth in letters sent by the Department of Health and Human Services to H.M.O's across the country....Typically, doctors say, such gag clauses' discourage them from telling patients about treatment options--often expensive options--not covered by the H.M.O." (Sunday, The New York Times).

PRICE INDEX FIX POSSIBLE, RUBIN SAYS--"Clinton administration officials and congressional Republicans yesterday endorsed a Senate advisory panel's conclusions that government statistics overstate inflation, opening the door to a discussion that could lead to lower cost-of-living adjustments for federal benefit programs and boost prospects for a balanced budget deal" (Monday, The Washington Post).

RETIREMENT SAVINGS LAGGING--"Working Americans have improved their savings for retirement, but not nearly enough to achieve the income they want. The fifth annual Workplace Pulse survey found that average annual retirement savings rose to $2,388 during 1996, 11 percent more than in 1995 and 34 percent more than in 1994. But the survey, released last week, also revealed that income expectations have risen nearly 8 percent over the last year, to $26,256 a year from $24,372" (Sunday, The Washington Post).

NEW CONGRESS, MORE DOWNSIZING--"The new Congress will be less blunt, but no less determined in its approach to government downsizing, according to Thomas Mann, an authority on politics and government. The meat ax gives way to the scalpel,' Mann said in a Nov. 18 speech at the International Personnel Management Association's federal section conference in Washington, D.C. A continued focus on balancing the federal budget will place extraordinary pressure on agencies to cut spending, said Mann, director of governmental studies at The Brooking Institution. Some core government functions may be affected, he said" (Dec. 9, The Federal Times).