FederalDaily - September 5, 2007

Court Opens Door to Pre-USERRA Compensation Claims

The U.S. Court of Appeals for the Federal Circuit last week handed down a decision that may mean money for hundreds of thousands of current and former military reservists who served between 1980 and 2000. In the case—Hernandez v. Department of the Air Force—former reservist and retired civilian Air Force aircraft mechanic Jose Hernandez filed a claim for compensation with the Merit Systems Protection Board (MSPB) seeking credit for his annual, sick and leave without pay accounts. After an MSPB administrative judge (AJ) denied the former reservist access to his leave records prior to 1994—which the AJ said was the cut-off for such claims under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA)—Hernandez took his claim to the appeals court. In an Aug. 27 decision, the court held that MSPB can order relief for violations of USERRA prior to that law’s enactment in 1994. According to Tully, Rinckey & Associates, the firm that represented Hernandez, that means reservists now can claim compensation for the years 1980 to 2000. The firm estimated as many as 300,000 people could be affected. At an average $3,000 in compensation each, that could represent as much as $1 billion, the law firm said on Aug. 29. To see the decision, go to: http://www.fedcir.gov/opinions/06-3375.pdf.

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Federal Agencies Contribute to Tax Gap

Federal agencies owe some $45 million in delinquent withholding taxes, according to a new Treasury Department Inspector General (IG) report. And according to the IG report, the federal government also needs to so more to ensure it lives up to its tax obligations. Collection of the delinquent taxes in question is less than expeditious—among the federal agencies that owe taxes, 99 entities owing $5.8 million had been assigned for resolution for more than a year. Although the IRS has expanded its efforts to collect delinquent employment taxes owed by government entities, progress in identifying and addressing the causes of these delinquencies has been limited, said the Aug. 31 report. To see more, go to: www.treas.gov/tigta/auditreports/2007reports/200710166fr.pdf  

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Army Launches Anti-Fraud Effort

In response to incidents of fraud within its contracting operations in Iraq, Afghanistan and Kuwait, the Army on Aug. 29 launched a new two-pronged effort to root out corrupt contracting practices. First, a Special Commission on Army Contracting—led by Jacques Gansler, a former DoD under secretary for acquisition, technology and logistics—will report in 45 days on how to increase contracting transparency and ensure against future fraud. At the same time, a separate Army internal task force will address existing contracting issues and implement fixes as problems are identified. “The Army task force will take an intensive look at current operations and implement reforms and corrections immediately,” Secretary of the Army Pete Geren said in a statement. As of Aug. 28, there were 76 ongoing criminal investigations involving contract fraud committed against the U.S. military in Iraq, Afghanistan and Kuwait, the Army said. Although 20 military and civilian Army employees have been indicted on charges of contract fraud in the region, the Army said that “the vast majority of Army contracting professionals fulfill operational requirements every day for soldiers serving in harm’s way.” To see more, go to: www.army.mil/-newsreleases/2007/08/29/4653-army-takes-further-action-to-fight-fraud

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TSP Monthly Returns for August 2007

Rates of Return were updated on September 4, 2007.

The monthly G, F, C, S, and I Fund returns represent the actual total rates of return used in the monthly allocation of earnings to participant accounts. The returns are shown after deduction of accrued TSP administrative expenses. The F, C, S, and I Fund returns also reflect the deduction of trading costs and accrued investment management fees. The most current G, F, C, S, and I Fund rates of return are shown above. Returns are updated after the monthly allocation of earnings, usually by the fourth business day of the month.

For more on TSP, click here.

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