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Washington, DC - An Administration proposal that increases perks for senior federal government executives while cutting critical funding for the front-line delivery of federal services and programs sends the "wrong message at the wrong time," said the leader of the nation=s largest independent federal sector union today.

National Treasury Employees Union (NTEU) President Colleen M. Kelley said the "Managerial Flexibility Act of 2001," part of the Administration's larger "Freedom to Manage" initiative, would provide a windfall for senior executives, including a 15.5 percent salary cap increase, relaxed accountability standards and improved vacation benefits, while cutting funding federal agencies have available for the delivery of front-line services and programs.

“Increasing perks for senior executives and instituting a needless accounting change in a federal retirement fund which will rob agencies of critical funding for front-line services is misguided policy. Moreover, it is the wrong message at the wrong time as front-line employees work overtime to safeguard our nation and deliver essential programs and services, during this critical time in our nation’s history," said Kelley.

Under the Administration’s proposal, the Senior Executive Service (SES) salary cap would increase from $161,200 to $186,300, allowing senior executives to immediately pocket larger bonuses.

The measure also calls for lowering the accountability bar for senior executives by not requiring them to be "re-certified" every 3 years, as now required by law. In the past, the Office of Personnel Management (OPM) has stated that unlike yearly performance appraisals which measure specific standards for a position, the re-certification examination was needed to measure senior executives Aagainst a broadly defined standard of executive excellence@ beyond job specific requirements. In addition the measure would double the vacation benefit currently afforded rank-and-file federal workers for newly hired senior executives.

The accounting change for the Civil Service Retirement System (CSRS) would require agencies to pay the federal government’s full cost of future retirement benefits for employees. Currently, agencies pay an amount equal to CSRS employees’ contributions and any additional amounts necessary to cover annuity payments come out of the Civil Service Retirement and Disability Fund. Kelley said shifting the costs and other retirement-related costs to agencies that are struggling to perform critical missions aimed at protecting the public in these dangerous times is simply wrong.

The union leader said front-line employees represented by NTEU at the Customs Service, the Food and Drug Administration (FDA), the Bureau of Alcohol, Tobacco and Firearms (ATF) and other agencies have been working grueling hours of overtime, facing dangerous hazards, and enforcing unparalleled levels of security since September 11.

“I am disappointed,” said Kelley, “that the proposal announced today does nothing to provide the resources necessary for agencies to accomplish their missions and for federal employees’ compensation to be made comparable to the private sector. That would address recruitment and retention problems for all federal employees, executives as well as those on the front line.”

NTEU represents some 150,000 federal employees in 25 agencies and departments.