Federal Employees News Digest

News Digest: June 20

The federal government is sharing classified information on cyber threats with defense companies and their Internet service providers as a way to boost security of corporate computer networks, Deputy Defense Secretary William Lynn said last week.

The cyber pilot, launched in June, also involves the Department of Homeland Security and will serve as a model for other entities that oversee critical infrastructure.

Lynn told journalists the government "will not be monitoring, intercepting or storing any private-sector communications." Instead, threat intelligence provided by the government will aid companies and Internet service providers working on their behalf "to identify and stop malicious activity within their networks," he said.

He added, "We're looking at that as an additional step to deal with people exploiting defense industry networks."

The remarks follow a recent attack on Lockheed Martin's computer network, which the company described as "significant and tenacious."

A prospective pooling of detailed government data on computer security threats would build on a defense industry group formed in 2007 to exchange information on computer-based threats, Lynn said.

Federal Chief Information Officer Vivek Kundra announced last week he will resign in August, according to a White House blog post.

Kundra, who was appointed the first federal CIO in 2009, is leaving the administration for a fellowship at Harvard University, Office of Management and Budget Director Jack Lew said in the post.

"We are planning for a smooth transition, continuing these remarkable gains in changing the way the federal government manages [information technology] and Vivek's impact on cutting waste and making government work better for the American people will continue to be felt well beyond his departure from federal service," Lew wrote.

When Kundra took the reins of federal IT spending 2½ years ago, $27 billion worth of IT projects were over budget and behind schedule, Kundra said at a technology awards event last week.

Under his watch, the administration has saved $3 billion by terminating failing IT projects and turning around those that were behind schedule.

At Harvard, Kundra will conduct independent research and collaborate with other researchers to study cloud computing, open data and government, and the impact of digital media and technology on governance.

Federal Employees Need to Make Important Choices Regarding Health ...

The Office of Personnel Management (OPM) recently announced that for 2005, Federal Employees Health Benefit Program (FEHBP) plan premiums will increase on average 7.9 percent over FEHBP plan premiums in effect during 2004. The 7.9 percent increase is the first time in four years that the average annual plan increase has been below 10 percent.

While the somewhat less than expected increase in premium rates for 2005 is welcome news to FEHBP participants (nationally, group health insurance premium rates increased on average about 11 percent during 2004), the increase masks the changes and the increasing number of choices that FEHBP participants are required to make to keep their overall out-of-pocket medical costs down.

Nationwide, health care costs are rising at a pace that exceeds the rate of growth in wages and inflation. FEHBP participants are also discovering that their co-payments (either a percentage or a flat dollar amount) and plan deductibles are increasing with most FEHBP plans.

Federal employees should, however, count their blessings that they have access to a group health insurance plan such as the FEHBP, which provides a variety of health insurance plans at a very reasonable premium cost to participants. This includes coverage both for employees and for annuitants assuming certain requirements are fulfilled. Nevertheless, before FEHBP participants can consider solutions to their increasing health care costs, it is important for them to understand some of the forces that have caused the upward spiral in their health care costs since the late 1990s. These forces include:

Aging Baby Boomers

The oldest of the post-World War II baby boomer" generation becomes age 60 within the next two years. Many current federal employees are part of the baby boomer" generation, which is aging into the years that require the most health care.

Technology Cost

Numerous studies have shown that the United States has the most advanced health care system in the world. Technological changes and additions have included the introduction of new medical equipment, medical procedures, treatment, therapies, and prescription drugs. This technology is expensive; its cost is added back into the total cost of delivering health care and subsequently into the cost of health insurance.

Health Insurance Industry Consolidation

Over the past 10 years, the health care industry has undergone tremendous consolidation.

Federal Employees' Almanac, 1984

Your Financial Guide, The Estate and Financial Planner for Federal and Postal Employees

Catalog of Copyright Entries. Third Series, 1959: January-June

Federal Employees Almanac

Your CSRS Retirement, How to Prepare for It, How to Enjoy It