Federal Daily - February 6, 2009

Shinseki Promises to Cut Backlog, Hire Staff

Department of Veterans Affairs (VA) Secretary Eric Shinseki told lawmakers he is moving to reduce the six-month delays in processing veterans’ disability claims and that he will hire an additional 1,100 staffers to reduce the backlog. Testifying Feb. 4 before the House Veterans Affairs Committee, Shinseki said VA may phase out paper processing and move to an all-electronic claims system, possibly by 2012. “Veterans are the centerpiece of our organization and of everything we do as we design, implement and sustain programs that serve them,” said Shinseki, a former Army chief of staff. “I am focusing my energy on the development of a credible and adequate 2010 budget request as a priority.” Shinseki also said he was launching a comprehensive review of the entire agency, which has been criticized by veterans groups as being insensitive to the needs of vets, particularly the injured or disabled. Rep. Bob Filner, D-Calif., committee chairman, said he hoped Shinseki could turn VA around. “So many veterans view the VA as ‘Veteran’s Adversary,’” Filner said. “It is my hope that you will help create a Department of transparency and trust that will make all veterans view the VA as a ‘Veteran’s Advocate.’” To see more, go to: http://veterans.house.gov/hearings/hearing.aspx?NewsID=327.

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Labor Groups Support FERS Redeposit Bill

Labor organizations supported a new House bill that—if passed into law—would allow former federal workers who return to civil service from the private sector to reinvest their full federal retirement annuity without losing credit for previous years of service. The bill, H.R. 828, the FERS Redeposit Act—introduced Feb. 3 by Virginia legislators Jim Moran (D), Frank Wolf (R) and Gerry Connolly (D)—applies to those covered by the Federal Employees Retirement System (FERS). Under the current system, individuals covered by FERS who leave the federal government and either cash out their annuity or roll it into a private savings account cannot redeposit those funds if and when they return to government service. A “redeposit” benefit is already available to employees covered under the Civil Service Retirement System (CSRS), who began working for the government prior to 1984. John Gage, American Federation of Government Employees president, applauded the measure. “We look forward to the next step toward retirement equity, the introduction of legislation that will equalize the treatment of unused sick leave between CSRS and FERS.” The National Federation of Federal Employees (NFFE) also voiced its support. “This bill is about the federal government doing all it can to bring the best talent back into the civil service,” said NFFE President Richard Brown.  To see more, go to: http://moran.house.gov/apps/list/press/va08_moran/FERs08.shtml or www.nffe.org/ht/display/ReleaseDetails/i/8256.

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Americans Plan to Delay Retirement, Group Says

In response to a year of bad economic news and crashing retirement account values, more Americans are planning to delay their retirement, according to a new study by the American Institute of Certified Public Accountants (AICPA) released Feb. 5. A survey of certified public accountants (CPAs) reported that nearly 35 percent of their clients who are approaching retirement age are postponing leaving the workforce because of recent economic conditions. This is a 3 percent increase from the 32 percent who last year said they were planning to delay their retirement, AICPA said. A majority of respondents who are postponing retirement (67 percent) plan to delay it no more than five years. About 9.6 percent are postponing for six years or more, the CPA group said. “What this suggests is that 70 is the new 65,” said AICPA Vice President James Metzler. “The market downturn has reduced wealth and CPA financial planners are seeing clients delay retirement plans as a result.” Also, 60 percent of those surveyed are postponing vacations, 52 percent are postponing car purchases and/or the buying or selling of a home and 42 percent have canceled home renovations. Only 11 percent of those surveyed have no plans to change their current spending, the group said. The survey was conducted in December via a questionnaire emailed to members of the AICPA Financial Planning Membership Section. To see more, go to: www.aicpa.org.

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