Federal Daily - December 10, 2008

Lawmakers Weigh in on Order to Restrict Union Eligibility

Lawmakers joined union leaders in rebuking an executive order removing from union eligibility about 1,500 employees of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and a handful of employees within the Treasury Department. The order, signed by President Bush on Nov. 26, would strip collective bargaining rights from the National Treasury Employees Union’s (NTEU) bargaining unit employees at ATF and certain workers at the Tax and Trade Bureau in the Department of Treasury. In a letter last week to Attorney General Michael Mukasey, House Majority Leader Steny Hoyer, D-Md., asked for a legal justification for stripping away the workers’ bargaining rights. “I would appreciate it if you could provide me a detailed explanation of why, after more than 30 years of collective bargaining,” Hoyer wrote, “the administration moved to rescind the collective bargaining rights of ATF employees whose duties and functions remain unchanged.” Sen. Daniel Akaka, D-Hawaii, chairman of the Homeland Security and Governmental Affairs Subcommittee on Oversight of Government Management and the Federal Workforce, also weighed in on the matter, saying such a step would harm employee morale and potentially undermine—rather than strengthen—national security. Akaka said he was concerned that the move was coming “under the guise of national security” only weeks before the Bush administration ends its tenure. Most ATF bargaining unit employees are Industry Operations Investigators, dealing largely with issues of licensing and compliance, according to NTEU. “The administration has taken an outrageous action that is unjustifiable,” NTEU President Colleen Kelley said in a Dec. 5 statement. In April, NTEU signed a new labor agreement with ATF, addressing a variety of workplace needs for both employees and the agency. To see more, go to: www.nteu.org/PressKits/PressRelease/PressRelease.aspx?ID=1343.

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Bill Would Help Retirees Facing Mandatory Withdrawals

Retirees would get a break under a new bill which—if it becomes law—would impose a one-year moratorium on rules that force the withdrawal of money from certain retirement accounts, such as IRAs and 401(k)s. The bill, “The Worker, Retiree and Employer Recovery Act of 2008,” was introduced Dec. 8 by Sen. Olympia Snowe, R-Maine, and would delay mandatory withdrawals from those funds through 2010. Such a suspension could give retirement accounts an opportunity to recoup financial losses suffered in this year’s Wall Street meltdown. Also, the legislation would allow retirees to re-contribute to their retirement accounts the amount they were required to withdraw in 2008. Under current law, retirees age 70½ or older generally must begin to withdraw funds from their IRAs or defined contribution retirement plans—including 401(k), 403(b) and 457 plans. The withdrawals must begin by April 1 of the year in which the retiree reaches 70½. A failure to take a required minimum distribution may result in penalties. “It’s absolutely critical that we do everything we can to help those struggling during these devastating economic times,” Snowe said. “Retirees are counting on the money they’ve saved during a lifetime in these retirement accounts.” To see more, go to: http://snowe.senate.gov/public/index.cfm?FuseAction=PressRoom.
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VA Traumatic Injury Protection Program Expands Benefits

Some severely injured military personnel and veterans are eligible for expanded benefits under the Servicemembers’ Group Life Insurance Traumatic Injury Protection Program (TSGLI), the Department of Veterans Affairs (VA) announced on Dec. 8. Following a review of the program, VA decided to increase the number of injuries covered, and liberalized injury criteria. New covered injuries include the partial amputation of a hand or foot and the degree of injuries based on severe burns. Veterans whose claims for TSGLI benefits were previously disallowed are being contacted if it appears their loss is now eligible for payment due to the changes. Another change to the TSGLI program is the payment of a $25,000 benefit to servicemembers hospitalized for 15 consecutive days as a result of a traumatic injury. Changes to benefits are retroactive to Oct. 7, 2001. The TSGLI program is designed to provide severely injured servicemembers and their families with short-term financial assistance. Servicemembers who sustained certain severe injuries are entitled to payments ranging between $25,000 and $100,000. Since the program began in 2005, more than $309 million in TSGLI benefits have been paid to injured members and their families. To see more, go to: http://www1.va.gov/opa/pressrel/pressrelease.cfm?id=1623.

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