HR Bulletin June 11, 2010
- Early Retiree Reinsurance Funds Likely Will Be Exhausted in 2012, Two Years Before End of Program, Study Finds
- Significant Budget Shortfalls Could Mean More Job Losses
- Survey Finds States Lag Behind National Economic Recovery
- Census Hiring Results in May Job Growth
- City of Alexandria, Va., to Host IPMA-HR Developing Competencies for HR Success on July 13-16
- Job Analysis Seminar Scheduled for July 18 in Huntington Beach, Calif.
- Making the Case to Attend the IPMA-HR International Training Conference & Expo
- June 28 Webinar will Focus on Crisis Communication from the Human Resource Perspective
- On the Calendar
The June 2010 issue of HR News magazine (4.7 MB) is now online.
The Summer 2010 issue of Public Personnel Management (2.3 MB) is available online.
Press releases on the IPMA-HR Web site may be accessed here.
To access archived issues of the HR Bulletin, click here; you must be a member of IPMA-HR in order to access these archived issues.
Early Retiree Reinsurance Funds Likely Will Be Exhausted in 2012, Two Years Before End of Program, Study Finds
WASHINGTON – A $5 billion temporary reinsurance program designed to help employers maintain health benefits for early retirees likely will be exhausted within two years—well before the 2014 termination date for the program, according to a study released today by the nonpartisan Employee Benefit Research Institute (EBRI).
The program is part of the Patient Protection and Affordable Care Act of 2010 (PPACA), which Congress approved and President Barack Obama signed into law earlier this year. One goal of the program is to provide an incentive for employers to maintain retiree health benefits and assist retirees with their costs for health coverage.
Under the reinsurance program, sponsors of early retiree health programs must be able to show that the subsidies were not used to reduce their level of support for the plan. Subsidies can be used to reduce retiree costs, and sponsors must also show that the subsidies were used to generate savings or had the potential to generate savings.
Congress appropriated $5 billion for the program, which became effective June 1. The program provides an 80 percent subsidy for retirees who are over age 55 and not yet eligible for Medicare. Claims from dependents are also eligible. It applies to claims of between $15,000 and $90,000.
Using data to calculate how many early retirees there are and how much they tend to spend on health care services, Paul Fronstin, director of the EBRI Health Research and Education Program and author of the study, concludes available funds will be exhausted well before the program is set to expire. The study appears in the July 2010 EBRI Notes.
The subsidy will be available through Jan. 1, 2014, or the date when the funds are exhausted. Fronstin writes that if the subsidy were drawn down for all eligible early retirees and their dependents, $2.5 billion of the available $5 billion would be exhausted in the first year of the program. The $5 billion would last no more than two years and would not be available in 2012 or 2013, the study finds. This assumes that all employers eligible to apply do so and is contingent on other assumptions outlined in the study.
EBRI is a private, nonprofit research institute based in Washington, D.C., that focuses on health, savings, retirement, and economic security issues. EBRI does not lobby and does not take policy positions.
Significant Budget Shortfalls Could Mean More Job Losses
WASHINGTON – Continuing research into the economic and fiscal conditions of cities demonstrates the need for Congress to Adopt the Local Jobs for America Act. A new report from the National League of Cities indicates that most cities and towns are facing worsening economic conditions that are forcing layoffs and reductions in city services.
The State of American Cities Survey on Jobs and the Economy shows that seven in 10 city officials indicate they are responding to the economic crisis by making personnel cuts, including layoffs, hiring freezes and furloughs. Many cities are also cutting public safety spending and healthcare benefits.
The report identifies declining property markets as a growing challenge for cities. More than 80 percent of officials cite the commercial market as a foremost concern. As a major contributor of local revenue, the resulting loss of property taxes could act as a significant barrier to local economies’ ability to recover.
As a response to the declining economic conditions, cities continue to engage in the difficult task of balancing their budgets. In addition to those cutting personnel, 68 percent are cutting capital projects. Twenty-two percent of city officials indicate they are cutting public safety budgets, which is typically an option of last resort.
City officials indicate that service and employment cuts are coming at a time when cities are seeing record increases in poverty. Sixty-three percent of officials say that poverty has increased in their community in the last year, the largest percentage since the question was asked in 1992. Cities with increased amounts of poverty typically see greater service requests, the same services now being cut.
With local and state sectors comprising about one-eighth of GDP, and cities making up a significant portion of this sector, the services and employment offered by local governments are critical to the health of local and regional economies that drive national economic performance.
Looking forward, more than half of all respondents say they anticipate that next year will see even greater cuts in city services if taxes or fees are not raised. Local officials agree that the state of America’s cities continues to worsen, threatening long-term national economic recovery.
City budget shortfalls are predicted to become more severe as tax collections, which lag the overall economy, catch up with economic conditions. Without the Local Jobs for America Act, city leaders will have to lay off more employees, cut essential services and cancel projects—retrenchments that could place a drag on our national recovery.
These cuts demonstrate a clear need for a federally-funded local jobs bill that gets city employees back to work and creates meaningful employment opportunities in local communities. The Local Jobs for America Act will assist cities to protect public safety and avoid laying off municipal employees. It will also lay a foundation for future growth as cities will be given funds to innovate and create useful jobs in both municipal and nonprofit agencies.
The National League of Cities is the nation’s oldest and largest organization devoted to strengthening and promoting cities as centers of opportunity, leadership and governance. NLC is a resource and advocate for 19,000 cities, towns and villages, representing more than 218 million Americans.
Survey Finds States Lag Behind National Economic Recovery
According to the biannual report, The Fiscal Survey of States, released by the National Governors Association (NGA) and the National Association of State Budget Officers (NASBO) fiscal year 2010 presented the most difficult challenge for states’ financial management since the Great Depression.
State fiscal conditions continued to deteriorate, despite the overall U.S. economy showing signs of improvement. As a result of declining revenues and a requirement to have balanced budgets, states have dramatically reduced spending from $687.3 billion in fiscal 2008 to $612.9 billion in fiscal 2010. The report indicates fiscal 2011 will be equally difficult despite modest revenue growth. States will need to make additional spending cuts or increase taxes to close their budget gaps and these actions could slow the economic recovery.
According to the report, in fiscal 2010, general fund expenditures declined 6.8 percent. However, governors’ recommended budgets for fiscal 2011 forecast a 3.6 percent increase in general fund expenditures.
The increase in state funds in fiscal 2011 is in response to a decline in the stimulus funds provided as part of Recovery Act, which are expected to decline by $55 billion, in fiscal 2011. However, even with a 3.6 percent increase in general fund spending, fiscal 2011 spending will still be $52 billion lower than fiscal 2008—a 7.6 percent decline.
“States are still reeling from the downturn after the unprecedented declines in year over year spending in fiscal 2009 and 2010,” said NASBO Executive Director Scott D. Pattison. “States face significant fiscal challenges going forward with the federal Recovery Act funds ending, revenues not expected to be returning to pre-recession levels, and higher demands for many services like health and education.”
NGA Executive Director Raymond C. Scheppach said, “Our best estimate of the remaining state shortfalls for 2010-2012 is $127.4 billion. Because states lag behind national recovery, they expect 2011 to be as bad as 2010, and states will not begin the path to recovery until 2012.”
The data for this edition of The Fiscal Survey of States were collected during spring 2010. More information is available on the Web site of the National Governors Association.
Census Hiring Results in May Job Growth
The Bureau of Labor Statistics (BLS) reported that the economy added 431,000 jobs in May. The unemployment rate decreased to 9.7 percent. The jobs report was considered disappointing since the private sector added only 41,000 jobs. Almost all of the May job growth resulted from the federal government’s hiring of part-time census workers. The federal government added 412,000 jobs. State and local government employment continued to decline. State government excluding education lost 12,500 jobs and local government employment excluding education decreased by 8,800 jobs.
The labor underutilization rate decreased from 17.1 percent to 16.6 percent. This rate is determined by combining those who are unemployed, plus those marginally attached workers (those neither working nor looking for work but who indicate that they want and are available for work), and those employed part-time for economic reasons.
Additional information is available here.
City of Alexandria, Va., to Host IPMA-HR Developing Competencies for HR Success on July 13-16
Developing Competencies for HR Success is a comprehensive four-day training program that teaches the benefits of understanding HR competencies, how to apply them and how to integrate them into business plans. As a standalone training program, this course is the best way to become a strategic player within your organization. This course will help you and your staff shift from managing “people issues” to managing “people-related business issues.”
Learn about self-assessment, building teams and coaching staff, resolving disputes and reaching consensus, creating a risk-taking environment, communication and levels of listening, building trust relationships, using consensus- and coalition-building skills, and more with IPMA-HR’s Developing Competencies for HR Success.
The entire program costs $275 for IPMA-HR members, and just $375 for nonmembers.
Completing IPMA-HR’s Developing Competencies for HR Success is a step toward certification. At the core of the IPMA-HR certification program is an appreciation of the importance of HR competencies. If you or members of your staff desire to become certified as an IPMA-HR Certified Professional (IPMA-CP) or an IPMA-HR Certified Specialist (IPMA-CS), learning the concepts that are the foundation of this course is a necessary step.
Visit IPMA-HR at www.ipma-hr.org to download the registration form today, or contact us by e-mail at meetings@ipma-hr.org, or by phone at (703) 549-7100 to learn more about IPMA-HR’s Developing Competencies for HR Success.
Job Analysis Seminar Scheduled for July 18 in Huntington Beach, Calif.
Register today for the Job Analysis Seminar, which is being held in conjunction with the 2010 IPAC Annual Conference, and will take place from 8:30 a.m. until 4 p.m. Sunday, July 18, 2010, at the Hyatt Regency Newport Beach in Newport Beach, Calif. Karen Coffee, chief of HR planning and innovation with the California Department of Corrections and Rehabilitation, will lead the seminar.
The job analysis course provides participants with the theory, principles and methodology to conduct a multipurpose job analysis, all in accordance with the Uniform Guidelines on Employee Selection Procedures. The resulting data can be used for a variety of human resources activities such as the establishment of class specifications, the design of training programs and the development of content valid selection procedures. The IPMA-HR job analysis approach is flexible enough to be used on any type of occupation and is applicable for small, medium and large agencies. Those who would benefit from this seminar include all assessment practitioners as well as HR professionals seeking additional knowledge on selection issues.
What You Will Learn
- Overview of job analysis.
- Legal and professional foundation.
- Multipurpose job analysis.
- IPMA-HR job analysis method.
- Job analysis documentation.
Register today by visiting the IPAC Annual Conference website or email meetings@ipma-hr.org for more information.
Making the Case to Attend the IPMA-HR International Training Conference & Expo
Great ideas and successful practices don’t happen in a vacuum. They are often sparked by new ways of thinking and that’s what you’ll find at the IPMA-HR International Training Conference & Expo, which will be held October 2-6 at the Sheraton Seattle Hotel and Towers in Seattle, Wash. This is no time for business as usual. Come to the IPMA-HR conference and leave with dozens of practical ideas that you’ll be able to implement immediately.
It’s true; budgets are tight, especially for state and local governments. That’s why it’s even more important that you attend the conference. Finding out how other public sector HR agencies are navigating through these difficult times is essential for dealing effectively with this economy. This conference is the largest gathering of public sector HR professionals anywhere.
And it’s smart to begin planning ahead to get approval to attend the conference. Let your manager know why it’s important that you attend. Whether your agency is small or large, by attending the 2010 IPMA-HR Conference you’ll get:
- Practical solutions for effective agency management in difficult times
- Access to an entire network of people who are dealing with and navigating through similar complex problems
- A choice of more than 20 educational sessions
- Connected to products and services for the public sector HR professional at the expo featuring employee benefit packages, professional development programs, training programs and materials, and much more
Writing a Proposal
Impress your manager by stating your case in a written formal proposal. This will suggest that you’re serious about your own professional development and getting solutions that will help your agency succeed. Include in your proposal:
- A complete list of the educational sessions with the specific sessions you intend to attend, and try to tie these sessions to your organizational goals.
- A list of exhibitors and those you intend to meet with during the meeting.
- Areas where your agency faces challenges and the preconference workshops you want to attend that will help you overcome those challenges.
- An overview of the costs (registration, lodging, transportation, meals).
Seattle is a convenient and affordable destination. Plus, your conference registration fee includes continental breakfasts and breaks each day of the conference, hors d’oeuvres at the President’s Welcome Reception and the Annual Celebration Reception, and lunch during Monday’s expo. You can even suggest that you share a room with a colleague to cut your lodging expenses in half.
By planning ahead, you can get early buy-in from your manager to attend. It’s a smart business decision, and your agency will reap the rewards in the long run.
Questions about the conference can be directed to the IPMA-HR meetings department by e-mail at meetings@ipma-hr.org. Please continue to check the conference Web site at www.ipma-hr.org for updates.
June 28 Webinar will Focus on Crisis Communication from the Human Resource Perspective
When a crisis occurs in any company, across any industry, there are, in reality, two separate crises. The first is the immediate problem that caused the crisis in the first place. The second crisis can far outlive the first and potentially destroy a company. The second crisis involves the employee’s perception of what happened, how it happened and what was done to fix it and ensure their safety and well being, and the long term value you create for them as an organization. In this regard, the clear and concise communication of information to your employees and other internal audiences is of crucial importance to recover from the crisis.
Join us Monday, June 28, 2010, from 11 a.m.-12:30 p.m. Eastern Time for this informative webinar in which Jeff Lanza, FBI Special Agent (retired), will provide crucial and current best practices in employee communications in a climate of instant traditional news and user generated news reporting through social media such as Twitter and YouTube. The presentation includes specific instruction on what employees expect during a crisis and how to develop and deliver clear and messages that can mitigate the stresses placed on human resources personnel during the crisis.
Learning Objectives:
Following the presentation, audience members will be able to:
- Quickly determine what communication actions they should take during a crisis and what information is crucial to communicate to internal audiences.
- Be able to effectively communicate in times of crisis through the development of key themes and messages.
- Be able to plan and implement a strategy to minimize the spread of rumor, innuendo and false information during a crisis event.
Key Points Covered in Presentation:
- Effective message development and delivery
- Eleven key tips for a successful employee communication
- Avoiding traps and pitfalls
- What employees want and need to know during a crisis
- Seven internal communication steps to ensure a positive outcome
Meet the Presenter, Jeff Lanza, FBI Special Agent (Retired)
Jeff Lanza was an FBI Agent for more than 20 years, during which he investigated corruption, corporate fraud, computer crime and organized crime. He served as chief of internal security for the FBI’s Kansas City region. For nearly two decades, he also served as a public face of the FBI and was one of the agency’s most utilized spokespersons.
He is a certified FBI instructor and has developed and provided numerous educational programs for law enforcement and the community. He has provided more than 750 presentations on risk management to associations, corporate boards, and employees of major corporations around the world.
Lanza’s presentation on leadership ethics has been utilized to train future leaders in numerous organizations, including the University of Kansas, Blue Cross Blue Shield and the Helzberg Entrepreneur Leadership program. He developed a presentation on identity theft which was recently made available to a nationwide audience of Citigroup employees.
He has appeared on The Today Show, Good Morning America, Larry King Live and Fox National News. His expertise has been used as a resource for The American Association of Retired Persons (AARP) Bulletin’s “Scam Alert” column. He holds a master’s degree in business administration.
Sign Up Today and Your Entire Staff Can Listen In for One Fee
Register today online (must pay by credit card). Or, download your registration form and fax the completed form to (703) 684-0948 or email to meetings@ipma-hr.org.
The price for IPMA-HR members to participate in the webinar is $150; the price for nonmembers to participate in the webinar is $200.
There is no limit to the number of staff from your office participating in this webinar. In the room where staff will participate, you’ll need a speaker phone and a computer. Prior to the event, you will get instructions on how you will link to the webinar by telephone and on the Internet. One registration fee gives you a unique access code for one phone line and a link to the Web component. As many of your staff that you can pack into a room can attend and listen in by speakerphone.
Please note: Additional phones lines require additional access codes, which means separate registrations for each additional access code you need.
Cancellation Policy
You may cancel your registration up to 48 hours in advance of the webinar, and transfer your registration to a future webinar without penalty. If you do not transfer your registration, you must cancel no later than one week prior to the webinar date to receive a full refund of your fee.
Questions? Contact us by phone at (703) 549-7100 or by e-mail at meetings@ipma-hr.org.
On the Calendar
July 13-16
Developing Competencies for HR Success
Alexandria, VA
Contact IPMA-HR Professional Development and Research Coordinator Heather Corbin at hcorbin@ipma-hr.org, or click here for more information.
July 7
Online Course
Managing Employee Performance as an HR Business Partner
July 18
Seminar: Job Analysis
In conjunction with the 2010 IPAC Conference.
Newport Beach, Calif.
Contact IPMA-HR Professional Development and Research Coordinator Heather Corbin at hcorbin@ipma-hr.org or click here for more information.
August 25
Online Course
Developing Competencies for HR Success
September 19-22, 2010
Eastern Region Conference
Adlephi, Md.
September 22
Online Course
Developing Competencies for HR Success
October 2-6, 2010
2010 International Training Conference & Expo
Sheraton Seattle Hotel & Towers
Seattle, Wash.
Contact IPMA-HR Director of Membership and Professional Development Jessica Allen at jallen@ipma-hr.org or click here for more information.
October 6
Online Course
Managing Employee Performance as an HR Business Partner
Watch the HR Bulletin and our Web site for more information on educational opportunities.
