Political Transition Process: Presidential and Congressional : Presidential and Congressional [1 ed.] 9781614705963, 9781606928349

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Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

POLITICAL TRANSITION PROCESS: PRESIDENTIAL AND CONGRESSIONAL

No part of this digital document may be reproduced, stored in a retrieval system or transmitted in any form or by any means. The publisher has taken reasonable care in the preparation of this digital document, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained herein. This digital document is sold with the clear understanding that the publisher is not engaged in Political Transition Process: Presidential and Congressional : Presidential and Congressional, rendering legal, medical or any other professional services. edited by Patricia R. Eltona, Nova Science Publishers,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

POLITICAL TRANSITION PROCESS: PRESIDENTIAL AND CONGRESSIONAL

PATRICIA R. ELTONA EDITOR

Nova Science Publishers, Inc. New York

Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

Copyright © 2010\ by Nova Science Publishers, Inc. All rights reserved. No part of this book may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic, tape, mechanical photocopying, recording or otherwise without the written permission of the Publisher. For permission to use material from this book please contact us: Telephone 631-231-7269; Fax 631-231-8175 Web Site: http://www.novapublishers.com NOTICE TO THE READER The Publisher has taken reasonable care in the preparation of this book, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained in this book. The Publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or in part, from the readers’ use of, or reliance upon, this material. Any parts of this book based on government reports are so indicated and copyright is claimed for those parts to the extent applicable to compilations of such works.

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Independent verification should be sought for any data, advice or recommendations contained in this book. In addition, no responsibility is assumed by the publisher for any injury and/or damage to persons or property arising from any methods, products, instructions, ideas or otherwise contained in this publication. This publication is designed to provide accurate and authoritative information with regard to the subject matter covered herein. It is sold with the clear understanding that the Publisher is not engaged in rendering legal or any other professional services. If legal or any other expert assistance is required, the services of a competent person should be sought. FROM A DECLARATION OF PARTICIPANTS JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS. LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA Political transition process : Presidential and Congressional / editor, Patricia R. Eltona. p. cm. Includes index. ISBN H%RRN 1. Presidents--United States--Transition periods. 2. United States. Congress--Transition periods. I. Eltona, Patricia R. JK516.P58 2009 352.23--dc22 2009028460

Published by Nova Science Publishers, Inc.    New York

Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

CONTENTS   vii 

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Preface Chapter 1

Presidential Transitions Stephanie Smith 

Chapter 2

Presidential Transitions: Background and Federal Support Stephanie Smith 

Chapter 3

The Upcoming Transition: GAO’s Efforts to Assist the 111th Congress and the Next Administration Gene L. Dodaro 

1  37 

43  65 

Chapter 4

A Resource for The Presidential Transition The United States Office of Government Ethics 

Chapter 5

Presidential Transition Guide to Federal Human Resources Management 81  United States Office of Personnel Management 

Chapter Sources

141 

Index

143 

Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

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PREFACE The 2009 transition will be a unique and critical period for the U.S. government. It marks the first wartime presidential transition in 40 years. It will also be the first administration change for the relatively new Department of Homeland Security operating in the post 9/11 environment. The next administration will fill thousands of positions across government; there will be a number of new faces in Congress as well. Making these transitions as seamlessly as possible is pivotal to effectively and efficiently help accomplish the federal government’s many essential missions. Chapter 1 - Since President George Washington first relinquished his office to incoming President John Adams in 1797, this peaceful transition, symbolizing both continuity and change, has demonstrated the stability of our system of government. Aside from the symbolic transfer of power, an orderly transition from the outgoing Administration to the incoming Administration is essential to ensure continuity in the working affairs of government. Necessary funding for both the incoming and outgoing Administrations is authorized by the Presidential Transition Act (PTA), as amended. The General Services Administration (GSA) is authorized to provide suitable office space, staff compensation, communications services, and printing and postage costs associated with the transition. For the last presidential transition, GSA was authorized a total of $7.1 million in FY2001: $1.83 million for the outgoing William Clinton Administration; $4.27 million for the incoming Administration of George W. Bush; and $1 million for GSA to provide additional assistance as required by law. In order to provide federal funding in the event of a 2004-2005 presidential transition, the President's FY2005 budget proposal requested a total of $7.7 million. It also proposed to amend the PTA to permit the expenditure of not more than $1 million for training and briefings for incoming appointees associated with the second term of an incumbent President. The House passed H.R. 5025, the FY2005 Transportation, Treasury, and Independent Agencies appropriations bill, on September 22, 2004. The legislation recommended for GSA a total of $7.7 million for transition expenses, and recommended that, if no transition occurred, $1 million be used by the incumbent President for briefings of incoming personnel associated with a second term. In the Senate, S. 2806 also recommended a total of $7.7 million to implement a possible transition. However, the Senate Committee on Appropriations denied the request to allow $1 million for training for incoming appointees associated with the second term of an incumbent President, stating that "it should be properly budgeted for and requested by the appropriate agencies." P.L. 108-309 was enacted on September 30, 2004, to provide continuing non-defense appropriations through November 20, 2004. A total of $2.5 million was authorized in the event of a presidential transition, until enactment of the FY2005 omnibus appropriations bill. Due to the outcome of the 2004

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viii

Preface

presidential election, no funds were provided in P.L. 108-447, the FY2005 Consolidated Appropriations Act. The 108th Congress amended the PTA to require that outgoing executive branch officials prepare a classified summary of specific national security threats to be presented to the President-elect as soon as possible after the general election (118 Stat. 3856). P.L. 108-458 also provided for expedited security clearance determinations for members of a Presidentelect's transition team, and recommended that the Senate give expedited consideration to national security officials nominated by the incoming President. The President’ FY2009 budget requests $8,520,000 in funding for the upcoming presidential transition. Chapter 2 - The Presidential Transition Act (PTA), as amended, authorizes funding for the General Services Administration (GSA) to provide suitable office space, staff compensation, and other services associated with the transition process.1 Section 5 of the PTA authorizes the President to include in his budget request for each fiscal year in which his regular term of office will expire, a proposed appropriation for carrying out the purposes of the act. The President's FY2009 budget requests $8,520,000 in funding for the upcoming presidential transition. Of this total, $1 million is provided for briefings and related transition services for incoming personnel associated with the new administration. Chapter 3 - The upcoming 2009 transition will be a unique and critical period for the U.S. government. It marks the first wartime presidential transition in 40 years. It will also be the first administration change for the relatively new Department of Homeland Security operating in the post 9/11 environment. The next administration will fill thousands of positions across government; there will be a number of new faces in Congress as well. Making these transitions as seamlessly as possible is pivotal to effectively and efficiently help accomplish the federal government’s many essential missions. While the Government Accountability Office (GAO), as a legislative branch agency, has extensive experience helping each new Congress, the Presidential Transition Act points to GAO as a resource to incoming administrations as well. The Act specifically identifies GAO as a source of briefings and other materials to help presidential appointees make the leap from campaigning to governing by informing them of the major management issues, risks, and challenges they will face. GAO has traditionally played an important role as a resource for new Congresses and administrations, providing insight into the issues where GAO has done work. This testimony provides an overview of GAO’s objectives for assisting the 111th Congress and the next administration in their all-important transition efforts. Chapter 4 - OGE begins its work by assisting the new administration with a critical component of the confirmation process for Senate-confirmed positions. Working closely with the transition team and the new White House, OGE helps prospective nominees for such positions (PAS nominees) to comply with the extensive financial disclosure requirements of the Ethics in Government Act. OGE also carefully evaluates their financial disclosure reports and prepares ethics agreements to resolve potential conflicts of interest before they enter Government service. We conduct our work as quickly and thoroughly as possible. In the early stages of the new President’s term, OGE can help the leadership team establish a strong foundation for ethics. Traditionally, OGE also has assisted new Presidential administrations by providing initial ethics briefings to their incoming leadership teams. Either

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ix

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before or after the Inauguration, OGE can provide useful instruction on Government ethics to potential appointees to the Executive Office of the President, the President’s cabinet and other senior administration positions. Agency ethics officials also will provide detailed briefings when the Senate confirms their appointments. Thereafter, OGE can continue to provide support and oversight to the decentralized executive branch ethics program throughout the President’s term. OGE will tailor its support to the needs of the new administration. Chapter 5 - All executive branch employees are subject to the Standards of Ethical Conduct for Employees of the Executive Branch, 5 CFR part 2635. The standards include 14 basic principles of ethical conduct and provide uniform rules about gifts from outside sources, gifts between employees, conflicting financial interests, impartiality in performing official duties, seeking other employment, misuse of position, and outside activities. Some employees also are subject to supplemental regulations promulgated by their agencies

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In: Political Transition Process: Presidential… Editor: Patricia R. Eltona

ISBN: 978-1-60692-834-9 © 2010 Nova Science Publishers, Inc.

Chapter 1

PRESIDENTIAL TRANSITIONS Stephanie Smith

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SUMMARY Since President George Washington first relinquished his office to incoming President John Adams in 1797, this peaceful transition, symbolizing both continuity and change, has demonstrated the stability of our system of government. Aside from the symbolic transfer of power, an orderly transition from the outgoing Administration to the incoming Administration is essential to ensure continuity in the working affairs of government. Necessary funding for both the incoming and outgoing Administrations is authorized by the Presidential Transition Act (PTA), as amended. The General Services Administration (GSA) is authorized to provide suitable office space, staff compensation, communications services, and printing and postage costs associated with the transition. For the last presidential transition, GSA was authorized a total of $7.1 million in FY2001: $1.83 million for the outgoing William Clinton Administration; $4.27 million for the incoming Administration of George W. Bush; and $1 million for GSA to provide additional assistance as required by law. In order to provide federal funding in the event of a 2004-2005 presidential transition, the President's FY2005 budget proposal requested a total of $7.7 million. It also proposed to amend the PTA to permit the expenditure of not more than $1 million for training and briefings for incoming appointees associated with the second term of an incumbent President. The House passed H.R. 5025, the FY2005 Transportation, Treasury, and Independent Agencies appropriations bill, on September 22, 2004. The legislation recommended for GSA a total of $7.7 million for transition expenses, and recommended that, if no transition occurred, $1 million be used by the incumbent President for briefings of incoming personnel associated with a second term. In the Senate, S. 2806 also recommended a total of $7.7 million to implement a possible transition. However, the Senate Committee on Appropriations denied the request to allow $1 million for training for incoming appointees associated with the second term of an incumbent President, stating that "it should be properly budgeted for and requested by the appropriate agencies." P.L. 108-309 was enacted on September 30, 2004, to provide continuing non-defense appropriations through November 20,

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Stephanie Smith

2004. A total of $2.5 million was authorized in the event of a presidential transition, until enactment of the FY2005 omnibus appropriations bill. Due to the outcome of the 2004 presidential election, no funds were provided in P.L. 108-447, the FY2005 Consolidated Appropriations Act. The 108th Congress amended the PTA to require that outgoing executive branch officials prepare a classified summary of specific national security threats to be presented to the President-elect as soon as possible after the general election (118 Stat. 3856). P.L. 108-458 also provided for expedited security clearance determinations for members of a Presidentelect's transition team, and recommended that the Senate give expedited consideration to national security officials nominated by the incoming President. The President’ FY2009 budget requests $8,520,000 in funding for the upcoming presidential transition.

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INTRODUCTION Since outgoing President George Washington first relinquished his office to incoming President John Adams in 1797, this peaceful transition, symbolizing both continuity and change, has demonstrated the “best of American democracy to the world.”1 The activities surrounding a presidential transition today begin shortly after the election, as the Presidentelect has fewer than 11 weeks to formulate the new Administration before taking the oath of office on January 20. A formal transition process has been shown to be essential to ensure continuity in the conduct of the affairs of the executive branch, as well as the rest of the federal government. Before 1963, the primary source of funding for transition expenses was the political party organization of the incoming President, and the efforts of volunteer staff. Realizing the importance of presidential transitions for effective government, Congress first enacted the Presidential Transition Act of 1963 (PTA) to authorize federal funding and assistance for future incoming Administrations.2 The act was amended by Congress in 1976, to increase the authorization for a presidential transition to $3 million, with $2 million available to the President-elect and Vice President-elect and $1 million to the outgoing President and Vice President.3 In 1988, Congress enacted the Presidential Transitions Effectiveness Act to increase federal funding to $5 million to support a change of Administrations.4 Of this total, $3.5 million was authorized to be appropriated for services and facilities to the President-elect and Vice President-elect. The outgoing President and Vice President were authorized $1.5 million in federal funds. A total of $250,000 would be returned to the Treasury if the outgoing Vice President were subsequently elected President. These funds were authorized to be increased in future transitions to accommodate inflation. The new legislation also amended the PTA to require that private contributions and names of transition personnel be publicly disclosed. In anticipation of the 2000-2001 transition, the 106th Congress enacted P.L. 106293, the Presidential Transition Act of 2000, which President Clinton signed on October 13, 2000.5 It amended the PTA to authorize the General Services Administration (GSA) to provide additional support in the orientation of the President-elect’s newly appointed senior staff.

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Part I of this chapter discusses legislative actions to enhance the transition process, each transition since the 1960-1961 arrival of President John F. Kennedy, and general considerations for the presidential transition process. Part II contains the text of the major transition statutes discussed in the report.

PRESIDENT’S COMMISSION ON CAMPAIGN COSTS

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Subsequent to the 1960 election, it was widely recognized that changes were needed in campaign finance practices. Funding for presidential transition activities was among the issues discussed. Accordingly, on November 8, 1961, President Kennedy established the President's Commission on Campaign Costs to make recommendations on “improved ways of financing expenditures required of nominees for the offices of President and Vice President” as well as other relevant costs associated with presidential campaigns.6 Five months later, the 12-member bipartisan commission completed its final report, entitled Financing Presidential Campaigns, which included a recommendation on presidential transitions.7 The commission reported that the 1952-1953 transition for President Dwight D. Eisenhower cost a special Republican committee more than $200,000, and the 19601961 transition for President Kennedy cost $360,000, funded by the Democratic National Committee. Noting that such expenses created financial hardship for the political parties, especially after an election, the commission recommended that funding for the President-elect and Vice President-elect should not be the responsibility of a political party. We endorse proposals to “institutionalize” the transition from one administration to another when the party in power changes. Important reasons for doing so exist wholly aside from the costs to the parties. The new President must select and assemble the staff to man his administration, and they in return must prepare themselves for their new responsibilities.8 The commission also recommended that the outgoing President be authorized to receive federally funded facilities and services to assist in the orderly transfer of executive power.9 In a May 29, 1962, letter to Congress transmitting legislation to implement the commission’s final recommendations, President Kennedy stated: Traditionally, the political parties have had to pay the costs of the President-elect and Vice President-elect during the transition period between the election and the inauguration of a new Administration. It is entirely desirable and appropriate that the Federal government provide funds for paying the reasonable and necessary costs of installing a new Administration in office.10 In addition to the importance of federal funding, President Kennedy stressed that an incoming President must select “responsible public officials who must prepare themselves for their new responsibilities”during the transition period.

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4

THE PRESIDENTIAL TRANSITION ACT OF 1963 As recommended by the President’s Commission on Campaign Costs, legislation was introduced during the 87th Congress to provide federal financial support for presidential transitions. Although it was supported by President Kennedy, there was no action on the bill. During the following Congress, H.R. 4638, the Presidential Transition Act of 1963 (PTA), was introduced on April 24, 1963, and was enacted on March 7, 1964, as P.L. 88-277.11 The PTA authorized the Administrator of General Services to provide to the Presidentelect and Vice President-elect office space, compensation to office staff, the detail of personnel on a reimbursable or non-reimbursable basis from federal agencies, the hiring of consultants, and travel expenses. It also authorized the provision of such services to the outgoing President and Vice President, for a period not to exceed six months from the expiration of their terms of office. The act authorized the appropriation of $900,000 for each presidential transition, but did not specify how the amount was to be divided between the incoming and outgoing Administrations. However, the legislative history indicated that the funds were to be divided equally.12

FUNDING UNDER THE PRESIDENTIAL TRANSITION ACT

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Even though the PTA was enacted in 1964, its provisions were not fully applied following President Johnson’s reelection in 1964, since he was already in office. Vice President-elect Hubert Humphrey spent approximately $72,000 in transition expenses under the act.13

Johnson-Nixon Transition The PTA was first fully implemented during the transition from the Administration of President Johnson to that of President Richard Nixon in 19681969, when the transition funds were divided equally between the two Administrations. The following year, the General Accounting Office (GAO) reviewed the operation of the act. GAO found that President Nixon incurred transition costs of $1.5 million, and it recommended that the $900,000 limit be increased to better reflect actual transition expenses.14 A 1982 GAO report stated that President-elect Nixon raised $1 million in private funds to supplement the $450,000 available to him under the act.15 President Johnson spent $370,276 of the $375,000 allocated to him under the PTA.16 He also had the assistance of employees provided by federal agencies on a nonreimbursable basis.17 Vice President Humphrey spent $75,000 to pay the salaries and expenses of his staff and consultants.18

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Nixon-Ford Transition In 1974, Vice President Gerald Ford faced a situation entirely different from that of the first presidential transition covered by the PTA. Because of the resignation of President Nixon, Mr. Ford was not a President-elect, and he received no funds under the Presidential Transition Act.19 Due to the manner in which President Nixon left office, there was some debate as to whether he was entitled to allowances and services as a former President. The Justice Department ruled that he was entitled to federal funds as a former President, since he had not been removed by impeachment.20 Funds are appropriated under the Presidential Transition Act only for presidential election years; therefore, no funds were specifically available when President Nixon left office. On August 29, 1974, the Ford Administration requested Congress to appropriate $450,000 to GSA for carrying out the provisions of the act. The Supplemental Appropriations Act of 1975 appropriated $100,000 to President Nixon under the Presidential Transition Act for a period of six months ending February 9, 1975.21 In addition, most of the clerical and staff work was done by detailed employees provided by several federal agencies, on a nonreimbursable basis.22

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Ford-Carter Transition Based on earlier GAO recommendations, the Presidential Transition Act was amended by Congress in 1976 to increase the authorization for a presidential transition to $3 million, with $2 million available to the President-elect and Vice President-elect and $1 million to the outgoing President and Vice President.23 The act also amended the earlier legislation to authorize the detail of personnel, on a reimbursable basis only. The increase in funding was first made available to President Ford and President Jimmy Carter in the 1976-1977 transition. The incoming Carter-Mondale Administration spent approximately $1.7 million of the $2 million made available to it pursuant to the act, without any reported private additional assistance.24 Of the $1 million appropriated to the outgoing Ford Administration, President Ford was allocated $905,000, and $95,000 went to Vice President Nelson Rockefeller. As of August 31, 1977, former President Ford had spent approximately $63 5,000 of the total appropriation, but GAO found that an additional amount would be needed to pay for the use of military aircraft.25 At the end of the six-month transition period, Vice President Rockefeller had used $51,292 of the total funds available to him under the PTA, as amended.26

Carter-Reagan Transition During the 1980-1981 transition, President Carter spent $672,659 for transition purposes, and Vice President Walter Mondale used $188,867 of the $1 million available to the outgoing Carter Administration.27

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The incoming Administration of Ronald Reagan spent approximately $1.75 million of the $2 million in available transition funds. Of this total, $63,378 went to Vice President-elect George H. W. Bush for personnel compensation and benefits.28 A 1982 GAO review of the Reagan-Bush transition team's activities at six federal agencies found that approximately $235,000 in transition-related expenses were charged to the agencies’ general appropriations. According to GAO, most of the expenses were incurred for gathering and communicating information about agency operations to the transition team. However, certain expenses were related to salaries for secretarial employees who were assigned to the transition team on a nonreimbursable basis and who worked at the team's direction on a full-time or nearly full-time basis. Since the PTA authorized that agency employee details to the transition team be made on a reimbursable basis only, GAO found that the transition team did not always follow correct procedures.29 In addition to federal appropriations, funds for the Reagan transition were solicited from the public by the Presidential Transition Foundation, Inc., a private corporation. GAO attempted to audit these funds, but was denied access to the accounts and records by the foundation’s legal counsel. According to GAO's report, the foundation stated that it would be audited by a public accounting firm. GAO found that federal funds appropriated under the PTA were kept separate from private funds donated to the foundation.30 A 1988 Senate report stated that, based on Internal Revenue Service documents and Federal Election Commission reports:

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President-elect Reagan raised approximately $1.25 million for both his preelection and post-election transition activities in 1980. None of the sources or expenditures associated with the private cash were ever disclosed to the public, creating the potential for hidden conflicts of interest.31

PRESIDENTIAL TRANSITIONS EFFECTIVENESS ACT In anticipation of a new President being elected in the November 1988 general election, the 100th Congress began consideration of legislation to provide increased federal funding for the 1988-1989 transition. After examining the transition expenditures for previous incoming Presidents Carter and Reagan, the Senate Committee on Governmental Affairs expressed concern that future incoming Presidents would have to raise private funds to finance their transitions if the funding under the PTA were not increased.32 Prior to the enactment of the PTA, and subsequently, many candidates had initiated transition activities and studies before the election, in some cases before the convention. The committee affirmed that pre-election transition planning is a legitimate cost of a presidential transition and concluded that such planning should be covered, at least partially, by public funds. However, the Federal Elections Commission indicated that there were regulatory prohibitions: [I]t appears that, under current law and regulations, the FEC would find that federal campaign funds — as opposed to segregated private donations — are not available for transition funding during a campaign. Furthermore, we are aware of no FEC reporting or disclosure requirements applicable to private transition funds.33

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As reported, the Senate bill provided for limited public funding of pre-election transition planning. Those provisions were not enacted. It continues to be the practice that all preelection transition planning is privately financed. As a result of these deliberations, Congress enacted the Presidential Transitions Effectiveness Act to increase federal funding for presidential transitions and to amend the 1964 legislation to require that private contributions and names of transition personnel be publicly disclosed (see Part II for complete text).34 The act authorized $3.5 million to be appropriated for the funding of services and facilities to the President-elect and Vice President-elect. The outgoing President and Vice President were authorized $1.5 million in federal funds. In the event the outgoing Vice President were subsequently elected President, the new Administration would receive only $1.25 million in assistance. For future transitions, these figures were to be increased by an inflation-adjusted amount, based on actual costs of transition expenses and services of the most recent presidential transition. In addition to funding provisions, the new legislation amended the PTA to require that private contributions and names of transition personnel be publicly disclosed. As a condition for receiving federal funding and services, the President- elect and Vice President-elect must formally disclose the date, source, and amount of all privately contributed funds for the transition, with a maximum contribution of $5,000 allowed from any person or organization. These written disclosures must be made to GSA within 30 days after the January 20 inauguration. The President-elect must also disclose information about transition team members before initial contact with a federal department or agency. The act also limits any temporary appointment to an executive branch vacancy to 120 days, unless a nomination has been submitted to the Senate.

FUNDING UNDER THE PRESIDENTIAL TRANSITIONS EFFECTIVENESS ACT As authorized by the act, the funding for an incoming Administration is available from the day following the general elections until 30 days after the inauguration. For the outgoing President and Vice President, transition funding was extended from six to seven months, beginning one month before the inauguration, to facilitate their relocation to private life. Separate legislation also provides former Presidents an annual lifetime pension and staff and office allowances after the transition period expires, as well as Secret Service protection.35 The increase in funding under the Presidential Transitions Effectiveness Act was first made available during the 1988-1989 transition of outgoing President Reagan and his successor, George H. W. Bush.

Reagan-George H. W. Bush Transition President Reagan used $697,034 of the $1.25 million available to him under the act as the outgoing President.36 Outgoing Vice President Bush was authorized $250,000 for expenses related to his transition from that office. The $250,000 was transferred to the Federal Election

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Commission.37 Incoming President Bush and Vice President Dan Quayle spent $2.3 million of the $3.5 million authorized under the PTA, as amended, and transferred $1 million to the government of the District of Columbia for inaugural expenses.38

George H. W. Bush-Clinton Transition For the 1992-1993 presidential transition, $3.5 million was appropriated to GSA for the incoming Administration of President William Clinton and Vice President Albert Gore Jr., and $1.5 million for the outgoing Administration of President George H. W. Bush and Vice President Quayle.39 Of this total, the Bush Administration determined that $1.25 million would be made available to President Bush, with the remaining $250,000 to be used by Vice President Quayle. During the transition period, President Bush used $907,939, with an unobligated balance of $342,061. Vice President Quayle used $244,192, with an unobligated balance of $5,808. President Clinton and Vice President Gore jointly spent $3,485,000, with an unobligated balance of $15,000. For FY1997, $5.6 million was authorized in the event of a presidential transition in January 1997, which did not occur.40

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PRESIDENTIAL TRANSITION ACT OF 2000 While the PTA, as amended, has authorized federal funds and facilities to ensure smooth transitions in the past, no formalized attention was given to orientation of a President-elect's newly appointed senior staff. In anticipation of the 2000-2001 transition, the 106th Congress enacted P.L. 106-293, the Presidential Transition Act of 2000, which President Clinton signed on October 13, 2000.41

NEW PROVISIONS TO FACILITATE THE TRANSITION PROCESS The legislation amended the PTA to authorize GSA to provide additional support during the 2000-2001 transition period. Most importantly, GSA was authorized to coordinate the development and presentation of orientation sessions for the President-elect’s nominees for cabinet and high-level executive branch positions. Prior to the election on November 7, 2000, GSA was authorized to consult with the presidential candidates in order to begin development of a computer and communications system for use during the transition period. In conjunction with the National Archives and Records Administration (NARA), GSA was required to create a transition directory, composed of federal publications and materials pertaining to the statutory and administrative functions of each federal department and agency. A fourth major provision required the Office of Government Ethics to prepare a report on needed improvements to the financial disclosure process currently required for presidential nominees.

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Clinton-George W. Bush Transition

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For FY2001, GSA requested a total of $7.1 million for the 2000-2001 presidential transition. Of this total, $1.83 million was budgeted for the outgoing Clinton Administration, with $305,000 to be returned to the Treasury if Vice President Albert Gore was elected President; and $4.27 million was requested for the incoming Administration.42 GSA requested an additional $1 million to fund its new responsibilities under the Presidential Transition Act of 2000. On October 12, 2000, the Senate gave final approval to the conference agreement that funded this account at $7.1 million in the FY2001 Treasury, Postal Service, and General Government Appropriations Act.43 On October 30, President Clinton vetoed the legislation. On November 3, 2000, President Clinton signed the measure that funded the 2000-2001 transition at the requested levels.44 Passage of the Presidential Transition Act of 2000 was intended to allow the Presidentelect and his appointees to “hit the ground running” as they took office on January 20, and increase their effectiveness during the crucial first year in office. However, the significance of the relatively short transition period came under intense scrutiny during the historic events surrounding the presidential election of 2000. With less than five weeks available for formal transition activities, $1.83 million was provided to the outgoing Administration of President Clinton, which included $305,000 for Vice President Gore; $4.27 million for the incoming Administration of President-elect George W. Bush; and $1 million to provide briefings for incoming Bush appointees. According to GSA, actual FY2001 obligations for the outgoing Clinton Administration totaled $1,788,623, which included $282,935 for Vice President Gore. Actual FY2001 obligations for the incoming Bush-Cheney Administration totaled $4,000,836 in transition costs, plus an additional $983,507 for agency briefings for incoming Bush appointees.45

FY2005 TRANSITION FUNDING Section 6 of the PTA authorizes the President to include in his budget request for each fiscal year in which his regular term of office will expire, a proposed appropriation for carrying out the purposes of the act. In order to provide federal funding in the event of a 2004 presidential transition, the President’s FY2005 budget proposal requested a total of $7.7 million. Of this total, $1 million would be provided for briefings and related transition services for incoming personnel associated with a new administration.46 Currently, Section 3(f) of the PTA states that there shall be no expenditures of funds for the provision of services and facilities in the event the President-elect is the incumbent President, or when the Vice President-elect is the incumbent Vice President. Any funds appropriated for such purposes “shall be returned to the general funds of the Treasury.” In the event no transition occurs, the President's FY2005 budget request for GSA proposed to amend the PTA through appropriation language to permit the expenditure of not more than $1 million for training and briefings for incoming appointees associated with the second term of an incumbent President.47 No other expenditure of appropriated funds for transition purposes would be made available to the incumbent President, and the remaining $6.7 million would be returned to the general fund of the Treasury.

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The House passed H.R. 5025, the FY2005 Transportation, Treasury, and Independent Agencies appropriations bill, on September 22, 2004. The legislation recommended for GSA a total of $7.7 million for the expenses associated with a possible 2004-2005 presidential transition, and included $1 million to brief incoming personnel. If no transition occurred, H.R. 5025 authorized that $1 million be used by the incumbent President for the training of new appointees associated with a second term of office. The House Committee on Appropriations also recommended the $1 million appropriation to be used by the incumbent President, and stated that the remaining $6.7 million in transition funds would be returned to the Treasury, if no transition occurred.48 Following its passage, H.R. 5025 was received in the Senate on September 29, 2004, and placed on the Senate Legislative Calendar. In the Senate, S. 2806, the FY2005 Transportation, Treasury, and Independent Agencies appropriations bill, also recommended a total of $7.7 million for GSA to implement a possible presidential transition, including $1 million for incoming appointees. However, the Senate Committee on Appropriations denied the request to amend the PTA to allow $1 million for training and briefings for incoming appointees associated with the second term of an incumbent President. The committee stated that it had no objection to funding such training, but believed that “it should be properly budgeted for and requested by the appropriate agencies.”49 On September 15, 2004, S. 2806 was reported to the Senate and placed on the Senate Legislative Calendar. P.L. 108-309 was enacted on September 30, 2004, to provide continuing nondefense appropriations through November 20, 2004. A total of $2.5 million was authorized in the event of a presidential transition, until enactment of the FY2005 omnibus appropriations bill. Due to the outcome of the 2004 presidential election, no funds were provided in P.L. 108447, the FY2005 Consolidated Appropriations Act.50

INTELLIGENCE REFORM AND TERRORISM PREVENTION ACT OF 2004 On December 17, 2004, the 108th Congress enacted the Intelligence Reform and Terrorism Prevention Act of 2004.51 Title VII, Subtitle F, implemented the recommendations of the National Commission on Terrorist Attacks Upon the United States (9/11 Commission) pertaining to presidential transitions.52 Section 7601 amended the PTA to require that outgoing executive branch officials prepare a classified summary of specific national security threats to be presented to the President-elect as soon as possible after the general election. The national security summary was also required to detail all “major military or covert operations,” as well as any pending decisions on possible uses of military force. The legislation also provided for expedited security clearance determinations for members of a President- elect's transition team, and recommended that the Senate give expedited consideration to national security officials nominated by an incoming President.

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FY2009 TRANSITION FUNDING The President’s FY2009 budget requests $8,520,000 in funding for the upcoming presidential transition. Of this total, $1 million is provided for briefings and related transition services for incoming personnel associated with the new administration.53

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ACTIVITIES OF PAST PRESIDENTIAL TRANSITIONS Before the Eisenhower/Kennedy transition in 1961-1962 and the subsequent enactment of the Presidential Transition Act of 1963, communications between incoming and outgoing Administrations were usually limited, especially when the President and President-elect were of different political parties and had been recent campaign opponents. It was generally expected that the President-elect would remain away from Washington until Inauguration Day. Formal communications took place concerning the inaugural ceremonies and the occupancy of the White House, but with virtually no discussion of substantive issues. The incoming Administration’s new cabinet generally was not selected until shortly before Inauguration Day; therefore, meetings between incoming and outgoing cabinet members were not common.54 President Harry Truman, who had been thrust into the Presidency in 1945 following President Franklin D. Roosevelt's sudden death, helped to establish the tradition that an outgoing President should actively facilitate the transition of power to an incoming President. Following the election on November 5, 1952, President Truman sent a telegram to Presidentelect Dwight D. Eisenhower, inviting him to a meeting in the White House “to discuss the problems of this transition period, so that it may be made clear to all the world that this Nation is united in its struggle for freedom and peace.”55 President Truman also required each of the executive branch agencies to report to him on what was being done to facilitate the transition.56 In spite of the serious responsibilities involved, only within the past 30 years, since the enactment of the PTA, have the problems associated with the transition of power received much systematic attention.

Eisenhower-Kennedy Transition Following his election in 1960, President Kennedy entered the White House well-briefed for his assumption of responsibility. While still a candidate, Senator Kennedy commissioned various documents on the transition process and postelection issues.57 Numerous authors and historians credit President-elect Kennedy’s preparation for transition to office in 1960-1961 as being unprecedented in the history of presidential transitions. A 1960 review of past presidential transitions by the Congressional Quarterly reported that: John F. Kennedy made an important innovation in American Presidential transitions through his appointment of 29 task forces which were asked to report to him on a

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wide variety of domestic and foreign policy problems in the period immediately preceding and following his inauguration.

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... [W]hile other Presidents-elect sometimes asked individual political associates or small groups of experts to brief them on limited phases of public policy, there is no precedent for the large number of task forces, some with wide memberships, which submitted detailed policy briefings to Kennedy near the time of his inauguration.58 Senator Kennedy's use of task forces began soon after his July 1960 Democratic presidential nomination, when he recognized that, if elected President, he would need policymaking advice to address the critical issues that would face him immediately upon taking office. Senator Kennedy asked two of his former opponents for the Democratic presidential nomination, Governor Adlai Stevenson and Senator Stuart Symington, to head the first two task forces on foreign policy and national defense issues. Senator Kennedy, before election day, appointed five additional task forces pertaining to foreign affairs, natural resources, domestic agriculture, and the overseas food program. The creation of these task forces served to highlight his interest in diverse issues, while at the same time using the expertise of former political opponents to demonstrate their support of Senator Kennedy's candidacy.59 All of the task force members were volunteers who received no compensation. One task force project was funded by a foundation grant of $20,000. As stated earlier, the Democratic National Committee paid $350,000 of Kennedy's administrative expenses for the transition.60 Immediately following the election, President-elect Kennedy, with the assistance of Theodore Sorensen as counsel-designate to the President, made a detailed listing of which task forces to appoint, with a deadline for submission of a final report. By his inauguration, President Kennedy had appointed 29 task forces, equally divided between foreign and domestic policy. Of this total, 24 task forces had already submitted final reports that contained precise recommendations. According to the Congressional Quarterly, approximately one person from each task force was to be appointed to a high level position within the new Administration.61 Washington, DC, attorney Clark Clifford was appointed to be in charge of transition period relations with the outgoing Eisenhower Administration. When notified of an upcoming January 6, 1961, meeting between President-elect Kennedy and President Eisenhower, Mr. Clifford was able to present an extensive background briefing and report to Mr. Kennedy based on the task force position papers.62

Johnson-Nixon Transition It was during the 1968-1969 transition that the Presidential Transition Act was first used for both incoming and outgoing Administrations. As an incumbent President not running for re-election, President Johnson became the first President to invite the presidential candidates and their staff to plan for the transition before the November election.63 Richard M. Nixon began planning for an efficient transition following his nomination at the Republican National Convention in July 1968. Franklin Lincoln, Jr., an attorney and former Defense Department official, was appointed as Mr. Nixon's representative on

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transition matters. Mr. Nixon made use of reports of past presidential transition efforts, and made lists of early decisions that would need to be made if he were elected to office. Following his November 1968 election, President- elect Nixon created approximately 30 task forces to prepare recommendations on issues pertaining to housing, education, tax policy, transportation, foreign aid, and job training.64 By the end of November 1968, President-elect Nixon had selected his first high- level appointees who would be responsible for implementing policies for his Administration. In December 1968, he met with Republican leaders to discuss his future legislative agenda. The selection of the Nixon cabinet was a long process, in which the President-elect spent six weeks studying various alternatives.65

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Nixon-Ford Transition The unprecedented series of events culminating in President Nixon' s resignation from office complicated the process of transition for Vice President Ford in 1974. Transition plans were initiated by Vice President Ford’s close friend and former law partner Philip Buchen, who had concluded that events might force an untimely end to the Nixon Administration. According to published sources, Mr. Buchen conducted several meetings to discuss details for the change of Administrations in the event of resignation or impeachment. Assisting in the transition planning were Nixon adviser Clay Whitehead, Governor William Scranton, Senator Robert Griffin, Representative John Byrnes, former Nixon aide Bryce Harlow, and William Whyte of U.S. Steel. One day before his formal resignation announcement to the public on August 9, 1974, President Nixon informed Vice President Ford of his intention to resign. The same day, Mr. Ford's transition planners began preparing formal documents with policy alternatives that President Ford would have to consider immediately upon taking office. The morning of Mr. Ford's swearing-in as President, advisers met at the Ford residence to brief him on their transition documents.66 Upon assuming the presidency, President Ford asked all members of former President Nixon's cabinet and the heads of all federal agencies to remain in his Administration for continuity and stability.67 By December 1974, the cabinet members and numerous highranking aides had submitted their resignations to the President. During this period, President Ford came under criticism for the allegedly slow pace at which he had replaced Nixon appointees and selected their successors. In response, Mr. Ford stated that he had become President under sudden and difficult circumstances, without the usual time to plan a transition to power.68

Ford-Carter Transition Before the 1976 election, the subject of Presidential transition was not publicly discussed by the Jimmy Carter campaign, reportedly because of what one Carter aide described as “the implied presumptuousness” of such considerations.69 However, the actual planning for a Carter Administration began after the April 27, 1976, Pennsylvania primary, which Governor Carter considered the turning point in his achieving the Democratic nomination. According to

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press reports, while Jack Watson was still serving as Georgia finance chairman for the Carter campaign, he began drafting a detailed transition document with timetables and work-flow charts. The transition planning took place in Atlanta, Georgia, under the auspices of the “CarterMondale Policy Committee,” in keeping with the low-profile approach said to be preferred by Governor Carter. 70 Members of the Carter transition staff were lawyers, academicians, and government officials recruited by Jack Watson. The staff included Harrison Wellford, a former congressional staff member; Larry Bailey, staff assistant to the U.S. Conference of Mayors; Sharleen Hirsch, an educational administrator; and Jule Sugarman, a public administrator. Staff members were assigned to task forces in the areas of community and human development, government organization, international security, economic policy, natural resources, and government regulation. The transition staff sought the advice of several persons with established expertise in transition planning, such as Clark Clifford, who worked on the Kennedy transition.71 On November 2, 1976, President Ford lost the election to Governor Carter, and the following day offered his “complete and whole-hearted support” in the transition to a new national leadership. President-elect Carter responded that he and Vice President-elect Mondale would take full advantage of this offer of close cooperation before Inauguration Day. Mr. Ford designated presidential counselor John Marsh, Jr., as his transition liaison with Mr. Carter's transition representative, Jack Watson.72 On the day of his election, Mr. Carter received 50 transition papers with major policy initiatives pertaining to welfare reform, energy development and conservation, government reorganization, cabinet appointments, and budget reform. A month after the election, Mr. Carter named his first cabinet nominees and directed his attention to the staffing of the approximately 200 top positions in his Administration.73 He also announced that he would limit his time spent in Washington during the transition because he did not wish to act as if he were already President. Mr. Carter stated that Vice President-elect Mondale was in Washington and that “he is me as far as Washington is concerned.”74 On November 22, 1976, President Ford and President-elect Carter met for an hour in the White House. The President-elect also met with the Director of the Office of Management and Budget (OMB), the Secretaries of Defense and Health, Education, and Welfare, and the Chairman of the Federal Reserve Board of Governors.

Carter-Reagan Transition As early as April 1980, Ronald Reagan began planning for a possible presidential transition when he met with a group of defense and foreign policy advisers before the Republican convention. The advisers were asked to prepare specific policy and budget recommendations for use in the first months of a Reagan Administration to enable him to begin work immediately after the inauguration. Coordinated by William Graham, an engineer with a California defense consulting firm, the experts included former Secretary of State Henry Kissinger, former President Ford, former White House chief of staff Alexander Haig, Senators John Tower and Richard Stone, Governor Bill Clements, former Cabinet member Casper Weinberger, and former Ambassador Anne Armstrong.75

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Following the Republican convention in July 1980, nearly 300 advisers were asked by Mr. Reagan to serve on 23 task forces to prepare reports due before Inauguration Day on economic and domestic issues.76 Ronald Reagan was elected the 40th President of the United States on November 4, 1980. President Carter pledged in his concession speech “a very fine transition period, the best in history,” and asked the country “to unite behind the Presidentelect.77 On November 6, 1980, the President-elect named his formal transition team, a job he described as “translating campaign promises into reality.” He named his campaign director, William Casey, to be chairperson of the transition executive committee, and campaign co-chairperson Anne Armstrong as vice chairperson. A personnel office was established under the leadership of E. Pendleton James to select people to fill approximately 2,700 top-level federal jobs.78 In November 1980, President-elect Reagan announced an executive branch transition organization consisting of five working groups responsible for the transfer of power. Under the direction of William Timmons, deputy director of transition, the working units coordinated transition efforts of various cabinet departments and other executive agencies. Each cabinet department was assigned a specific team leader to oversee the transition. Mr. Reagan also named a 14-member Economic Policy Coordinating Committee that included many high ranking officials from the Nixon and Ford Administrations. President-elect Reagan said publicly that he did not intend to preempt the powers that belonged to President Carter until Inauguration Day 1981.79 Mr. Carter's transition representative, Jack Watson, informed the Reagan group that the outgoing President intended to defer maj or policy decisions for the incoming Administration.80 President-elect Reagan and his wife met with President Carter and his wife late in November 1980.

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Reagan-George H. W. Bush Transition On November 8, 1988, George H. W. Bush became the 41st President, the first incumbent Vice President to be elected since Martin Van Buren in 1836. The following day, Presidentelect Bush announced the appointment of Craig Fuller, his former chief of staff, and Robert Teeter, his campaign strategist, as co-directors of the Bush transition effort. In addition, he named his longtime friend James Baker as an adviser on “key aspects” of the transition, and announced his intention to nominate Mr. Baker for Secretary of State. Mr. Bush stated that he wanted a “somewhat leaner” transition organization than was used in 1980. He also indicated that he would not seek to preempt President Reagan’s authority during the transition period or “unduly influence decisions that are properly the President' s.81 In mid-November 1988, President-elect Bush’s transition office opened in Washington, DC. Soon after, the Heritage Foundation delivered 2,500 resumes of persons recommended for jobs in the Bush Administration.82 Mr. Bush proposed additional cabinet appointments on November 21, 1988, which included two from President Reagan’s cabinet, Attorney General Richard Thornburgh and Education Secretary Lauro Cavazos.83 The smooth transition between the Reagan and Bush Administrations was further demonstrated on November 22, 1988, when White House Chief of Staff Kenneth Duberstein requested cabinet members and agency heads to provide information to the transition team on organizational matters, goals, and functions, resource descriptions, congressional oversight committees, regulatory programs, and other important issues relevant to each agency.84 By

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the end of November 1988, most of the executive branch agencies had designated internal transition leaders to assist in an orderly transition with President-elect Bush’s transition liaisons. Mr. Duberstein stated that the transition effort greatly benefited from the eight-year partnership of President Reagan and President-elect Bush, and that “their philosophical compatibility cannot be underrated.”85

George H. W. Bush-Clinton Transition Following the August 1992 nomination of William Clinton at the Democratic National Convention, several of his closest aides began working on a transition document to prepare for a possible change of Administrations following the November election. Headed by Clinton campaign manager Mickey Kantor, the working group was known as the ClintonGore Pre-Transition Planning Foundation, and included former Mayor Henry Cisneros, attorney Warren Christopher, former Governor Madeleine Kunin, and attorney Vernon Jordan. Governor Clinton's pre- transition team was headquartered in Little Rock, Arkansas. The team collected information on past presidential transitions and prepared a series of transition briefing books dealing with policy issues and proposed presidential agendas.86 In his concession speech following the election on November 3, 1992, President Bush stated that “our entire administration will work closely with his [Clinton’s] team to ensure the smooth transition of power.”87 At a November 5 cabinet meeting, President Bush stated that his top aides would cooperate with the Clinton transition team:

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It’s very important that we not be begrudging during the transition.... Let us all finish the job with the same class with which we served.88 It was later announced that Department of Transportation Secretary Andrew Card Jr. would head President Bush's transition team. In a radio address, President Bush stated that he would return to Texas after the inauguration, where he intended to retire from politics, and to “rededicate” himself to helping others.89 President-elect Clinton remained in Little Rock following the election, to read transition reports and to meet with top advisers. His key transition appointments were not immediately announced, and press reports indicated that there was a dispute among his aides over who should lead the Clinton transition effort.90 On November 6, 1992, it was announced that Vernon Jordan and Warren Christopher would head the Clinton transition team. It was also reported that Mr. Clinton would choose his cabinet officers in an orderly process, and that a “stringent set of ethics rules” would be used in the selection process.91

Clinton-George W. Bush Transition As a result of the ballot challenges concerning the November 7, 2000, presidential election, White House Chief of Staff John Podesta issued a November 13, 2000, memorandum to executive branch agencies stating that, “because of the uncertainty over election results, no President-elect has been identified to receive federal funds and assistance under the Presidential Transition Act of 1963.”92 The memo advised executive branch

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officials to provide any assistance that was “typically” provided to presidential candidates. Following the certification of the Florida popular vote on November 26, 2000, by the Florida Secretary of State in favor of Governor George W. Bush, GSA Administrator David J. Barram announced the following day that he would not authorize the release of federal transition funds since the final outcome remained “unclear and un-apparent,”93 due to ongoing legal challenges to the Florida certification. Since the PTA provides no explicit criteria for determining the “apparent successful candidates,” the GSA administrator based his decision on the 1963 legislative history, which stated that, “in a close contest, the Administrator simply would not make the decision.”94 Also at issue was the use of 90,000 square feet of office space in Washington, DC, that GSA had leased in anticipation of the transition period between election day on November 7 and the presidential inauguration on January 20, 2001, at a cost of approximately $700,000.95 In response to GSA's decision to withhold funding and office space, Governor Bush announced the establishment of his transition offices in McLean, VA, to be headed by the vice presidential candidate, former Secretary of Defense Richard Cheney. In a November 27, 2000, news conference, Cheney stated that the Bush- Cheney transition would be funded by private contributions as a “non-profit corporation and will seek 501(c)(4) status from the Internal Revenue Service.”96 On December 4, 2000, oversight hearings on the presidential transition were held before the House Government Reform Subcommittee on Government Management, Information, and Technology. In his opening statement, subcommittee chairman Stephen Horn expressed concern that, in spite of long-standing congressional intent to federally fund presidential transitions, “today — nearly four weeks after the presidential election — the administrator says he is still unable to ascertain a winner and, thus, is not providing the appropriate assistance required by the Presidential Transition Act.”97 In a written statement for the hearings record, Comptroller General David M. Walter wrote that, “given the current extraordinary circumstances surrounding the election, Congress should consider extending the existing time limitation on the obligation of funds under the Transition Act to help mitigate the unforeseen delay in the initial release of public funds.”98 As a result of these hearings, H.R. 5643 was introduced in the House on December 6, 2000, to clarify the definition of “apparent successful candidates” to permit the GSA administrator to provide transition funding and services to the President-elect and Vice President-elect as determined by official state certifications. The legislation was referred to the House Committee on Government Reform. There was no additional action in the 106th Congress. Immediately following Vice President Albert Gore’s concession speech on December 13, 2000, GSA Administrator David Barram authorized President-elect George Bush's use of federal transition funds and office space.99 The following day, GSA Deputy Administrator Thurman Davis presented Vice President-elect Cheney with an electronic card that served as the key to the Washington, DC, transition office, located at 1800 G Street, NW. The BushCheney transition officials assigned to coordinate with congressional staff and prospective Cabinet members were the first to relocate from their McLean, VA, headquarters to the GSA office space. Shortly after President-elect Bush's first formal address to the nation on December 13, he received a congratulatory call from President Bill Clinton. The following day, President-elect Bush announced plans to travel to Washington, DC, on December 18, to conduct separate

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visits with President Clinton and Vice President Gore, as well as to conduct interviews with possible Cabinet members.100 With less than five weeks until his inauguration, President-elect Bush made his Cabinet selections in just 20 days. According to newspaper accounts, the President- elect and his aides used the five weeks of the election dispute to narrow their list of possible appointments, even though they were criticized by some for “presumptuously” proceeding with the transition. With so little time left before he took office, President-elect Bush narrowed his selections to nominees who had previously been through Senate confirmations in the past, selecting Donald Rumsfeld for Secretary of Defense, Colin Powell for Secretary of State, and Norman Mineta for Secretary of Transportation. In addition to their government and corporate expertise, the Cabinet nominees also had long-standing professional associations with the President-elect and his family.101

General Considerations

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Each presidential transition is unique and brings with it the conditions and circumstances facing a particular President-elect that will help shape and influence his Administration. Despite the influence of unique circumstances, observers have identified a number of generally important transition issues based on past transition experiences.

Adequate Funding Since enactment of the Presidential Transition Act of 1963, Presidents-elect have assembled extensive staffs and organizations to conduct their transitions. In the past, discussions of presidential transitions have often focused on the importance of adequate federal funding, culminating with the Reagan transition, when $1.25 million in private funds was raised by the Reagan Transition Foundation to meet additional transition expenses. Enactment of the Presidential Transitions Effectiveness Act in 1988 recognized this issue by increasing the total amount authorized for a presidential transition to $5 million. The legislation also authorized future transition funding to be increased by an inflation adjusted amount. For the 2000-2001 presidential transition, a total of $7.1 million was appropriated for both the incoming and outgoing Administrations, and included $1 million for GSA to implement its new transition responsibilities under the Presidential Transition Act of 2000.102 Pre-election Planning The adequacy of federal funding, while a major consideration, is but one factor involved in determining the success of a presidential transition. A review of the literature on presidential transitions indicates that another major concern pertains to time, or a lack of it, in completing everything that needs to be accomplished by a President-elect in the 11-week period between an election and an inauguration. A transition period that begins swiftly and smoothly can help to determine how successful a presidency will be. The expression "to hit the ground running" is frequently used to describe the goal of past transition teams to make their imprint quickly on a new presidential agenda.103 During its consideration of the Presidential Transition Effectiveness Act, the Senate Committee on Governmental Affairs reported that there was:

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... near-unanimous agreement among past transition officials that a President-elect must undertake at least some advance planning during the general election campaign. A President-elect cannot wait until the morning after the election to start planning for the transition. In order for the President-elect to “hit the ground running,” the candidate must lay the administrative groundwork before the campaign is over.104 Based on hearing testimony by representatives of the Harvard University Public/Private Careers Proj ect, the committee found that such “pre-election transition planning may now be essential for ensuring post-election success.”105 A decade later, the 106th Congress enacted the Presidential Transition Act of 2000, to authorize a formal orientation process between incoming political appointees and career federal employees. A July 18, 2000, report prepared by the Senate on Governmental Affairs Committee stated that “timely orientations to new appointees” were “virtually non-existent” during past transition periods. According to the committee, enactment of the new legislation was essential to avoid “missteps and outright errors made by newly appointed officials at executive branch agencies and in the White House.”106

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Organizational Decisions The day after the election, a President-elect and his staff normally must “shift gears” from winning the election to planning a successful transition. According to a 2000 Heritage Foundation project on the presidency, one of the most difficult tasks facing an incoming President is the merging of the campaign staffs and the newly- formed transition teams.107 Elated by a winning campaign and a mandate for change by the electorate, a President-elect faces the transition period with great expectations. During the transition, the new Administration must act on campaign promises and quickly develop an administrative and legislative program. Author John Burke writes that the incoming Reagan Administration emphasized coordination between the transition team and the campaign staff to deflect the “rivalries and tensions” that had reportedly occurred during the previous transition of incoming President Carter.108 Crucial organizational decisions must be made as soon as possible on issues that will ultimately affect how well the new Administration succeeds. The President-elect and his staff must first make decisions related to key personnel appointments, and establish liaison with the representatives of the federal departments and agencies to ensure a smooth transition. Management and organizational issues should be resolved during the transition, so that substantive policy matters can be addressed on inauguration day.109 Incoming President George Bush, for example, had an obvious advantage during his well-organized 1988 transition, in that he was taking office as an incumbent Vice President. The day after his election, he immediately announced his transition team and several key staff appointments. His transition clearly benefited from the “good auspices” of former President Reagan because advice and information were “quickly conveyed, giving members of the transition both an easy start and a head start.” In addition, President-elect Bush was able to select quickly his cabinet and executive appointees from many experienced executive branch officials.110

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In a 1988 report on the Presidency and transitions, the National Academy of Public Administration stated that: The initial decisions that a president makes when organizing the White House, determining its structure and functional responsibilities, and establishing patterns of interaction between it and other executive branch agencies will affect how these needs are met, and ultimately, how well a presidency works. Naturally, this will affect the achievement of policy objectives.111

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Continuity of the Federal Government A leadership void can occur during the transition period when the outgoing Administration has constitutional authority but diminished influence, and the President-elect has much influence but no authority. This is sometimes referred to as a "lame duck" Administration. A 1990 University of Virginia conference on presidential transitions found that, while the incumbent Administration was often intent on having a continued impact on public and foreign policy, “the mere existence of a president-elect and his developing Administration interferes with this effort.”112 A 1988 report by Editorial Research Reports discussed the “dangers associated with presidential transitions,” both domestically and internationally, during the transition period. After the inauguration, difficult situations can also arise when a new and untested administration faces a sudden crisis or emergency.113 The day following his election, President-elect Clinton made a statement, asking foreign governments to continue recognizing President Bush as the “sole voice of U.S. policy.” He also warned that “the greatest mistake any adversary could make would be to doubt America's resolve during this period of transition.”114 Ideally, a President-elect who has been adequately briefed on policy issues by his transition teams during the weeks following the election will be better prepared to make crucial decisions upon entering office: Continuity of the federal government and responsiveness to the new political leadership are hallmark obj ectives of the traditional transition process. While incorporating these objectives, the extended transition process has been refined to perform the functions of policy making, advice-giving and personnel selection simultaneously. The new administration must concentrate upon policy programs that are immediately relevant to show effectiveness on and immediately following January 20.115

Setting Priorities in the New Administration A President-elect has 11 weeks to become informed in detail about the operations of the federal government before his inauguration on January 20. The “mechanics” of managing a transition — the tasks, deadlines, personnel decisions, budget and administrative procedures — generally occupy the initial phase of the transition process.116

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However, the President-elect must also begin to focus on making substantive decisions on policy issues. Campaign promises are reviewed to form a policy agenda. Soon after taking office, the new President must prepare a legislative agenda to present to Congress. The importance of the transition process cannot be underestimated in determining the ultimate success of an Administration. At least two authors advocate an “extended” transition that begins several months before the election and extends through at least the first session of Congress. If a President-elect has successfully focused on a “short list” of priorities or objectives that he wants to accomplish, he can dominate policymaking to achieve his goals during the honeymoon period that normally follows a election. By concentrating on a few key issues soon after taking office, many observers believe the President-elect can establish a public perception that he is in command of an aggressive policy agenda.

APPENDIX: TEXT OF PRESIDENTIAL TRANSITION STATUTES PRESIDENTIAL TRANSITION ACT OF 2000: P.L. 106-293, OCTOBER 13, 2000; 114 STAT. 1035 An Act

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To provide for the training or orientation of individuals, during a Presidential transition, who the President intends to appoint to certain key positions, to provide for a study and report on improving the financial disclosure process for certain Presidential nominees, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Section 1. Short Title This Act may be cited as the “Presidential Transition Act of 2000”.

Sec. 2. Amendments to Presidential Transition Act of 1963 Section 3(a) of the Presidential Transition Act of 1963 (3 U.S.C. 102 note) is amended — (1) in the matter preceding paragraph (1) by striking including — and inserting including the following: (2) in each of paragraphs (1) through (6) by striking the semicolon at the end and inserting a period; and (3) by adding at the end the following: (8) (A)(i) Not withstanding subsection (B), payment of expenses during the transition for briefings, workshops, or other activities to acquaint key prospective Presidential appointees with the types of problems and challenges that most typically confront new political appointees when they make the transition from

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Stephanie Smith campaign and other prior activities to assuming the responsibility for governance after inauguration. (ii) Activities under this paragraph may include interchange between such appointees and individuals who — (I) held similar leadership roles in prior administrations; (II) are department or agency experts from the Office of Management and Budget or an Office of Inspector General of a department or agency; or (III) are relevant staff from the General Accounting Office. (iii) Activities under this paragraph may include training or orientation in records management to comply with section 2203 of title 44, United States Code, including training on the separation of Presidential records and personal records to comply with subsection (b) of that section. (iv) Activities under this paragraph may include training or orientation in human resources management and performance-based management. (B) Activities under this paragraph shall be conducted primarily for individuals the President-elect intends to nominate as department heads or appoint to key positions in the Executive Office of the President. (9) (A) Notwithstanding subsection (b), development of a transition directory by the Administrator of General Services Administration, in consultation with the Archivist of the United States (head of the National Archives and Records Administration) for activities conducted under paragraph (8). (B) The transition directory shall be a compilation of Federal publications and materials with supplementary materials developed by the Administrator that provides information on the officers, organization, and statutory and administrative authorities, functions, duties, responsibilities, and mission of each department and agency. (10) (A) Notwithstanding subsection (b), consultation by the Administrator with any candidate for President or Vice President to develop a systems architecture plan for the computer and communications systems of the candidate to coordinate a transition to Federal systems, if the candidate is elected. (B) Consultations under this paragraph shall be conducted at the discretion of the Administrator.

Sec. 3. Report on Improving the Financial Disclosure Process for Presidential Nominees (a) In General- Not later than 6 months after the date of the enactment of this Act, the Office of Government Ethics shall conduct a study and submit a report on improvements to the financial disclosure process for Presidential nominees required to file reports under section 101(b) of the Ethics in Government Act of 1978 (5 U.S.C. App.) to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives. (b) Content of Report(1) In general- The report under this section shall include recommendations and legislative proposals on —

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(A) streamlining, standardizing, and coordinating the financial disclosure process and the requirements of financial disclosure reports under the Ethics in Government Act of 1978 (5 U.S.C. App.) for Presidential nominees; (B) avoiding duplication of effort and reducing the burden of filing with respect to financial disclosure of information to the White House Office, the Office of Government Ethics, and the Senate; and (C) any other relevant matter the Office of Government Ethics determines appropriate. (2) Limitation relating to conflicts of interest- The recommendations and proposals under this subsection shall not (if implemented) have the effect of lessening substantive compliance with any conflict of interest requirement. (c) Authorization of Appropriations- There are authorized to be appropriated such sums as may be necessary to carry out this section. References: H.R. 4931 (and S. 2705), 106th Congress S.Rept. 106-348, from the Committee on Governmental Affairs 7/24/2000: 7/31/2000: 9/13/2000: 9/13/2000:

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9/13/2000: 9/13/2000: 9/13/2000: 9/19/2000: 9/28/2000: 9/28/2000: 9/29/2000: 10/3/2000: 10/12/2000: 10/12/2000:

Referred to the House Committee on Government Reform. Referred to the Subcommittee on Government Management, Information and Technology. Committee on Government Reform discharged. Mr. Horn asked unanimous consent to discharge from committee and consider. Considered by unanimous consent. On passage Passed without objection. Motion to reconsider laid on the table Agreed to without objection. Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 812. Passed Senate without amendment by Unanimous Consent. Cleared for White House. Message on Senate action sent to the House. Presented to President. Signed by President. Became P.L. 106-293.

PRESIDENTIAL TRANSITIONS EFFECTIVENESS ACT: P.L. 100-398, AUGUST 17, 1988; 102 STAT. 985 An Act To amend the Presidential Transition Act of 1963 to Provide for a more orderly transfer of executive power in connection with the expiration of the term of office of a President Be it enacted by the Senate and House of Representatives of the United States ofAmerica in Congress assembled,

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Section 1. Short Title This Act may be cited as the "Presidential Transitions Effectiveness Act”.

Sec 2. Presidential Transition Authorizations (a) AMENDMENT — Section 5 of the Presidential Transition Act of 1963 (3 U.S.C. 102 note) is amended — (1) by redesignating such section as section 6; (2) by inserting before such section the following heading:

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AUTHORIZATION OF APPROPRIATIONS (3) by inserting “(a)” after the section designation; (4) in paragraph (1), by striking out "$2,000,000" and inserting in lieu thereof “$3,500,000”; (5) in paragraph (2), by striking out “$1,000,000” and inserting in lieu thereof “$1,500,000” (6) in paragraph (2), by inserting before the period at the end thereof the following: except that any amount appropriated pursuant to this paragraph in excess of $1,250,000 shall be returned to the general fund of the Treasury in the case where the former Vice President is the incumbent President”; and (7) by adding at the end thereof the following new subsection: “(b) The amounts authorized to be appropriated under subsection (a) shall be increased b 'y an inflation adjusted amount, based on increases in the cost of transition services and expenses which have occurred in the years following the most recent Presidential transition, and shall be included in the proposed appropriation transmitted by the President under the last sentence of subsection (a).” (b) EFFECTIVE DATE — The amendments made by subsection (a) of this section shall be effective upon enactment, except that the amendment made by paragraph (7) of such subsection shall take effect on October 1, 1989.

Sec. 3. Presidential Transition Financing and Personnel. The Presidential Transition Act of 1963 (3 U.S.C. 102 note) is further amended by inserting after section 4 the following new section: DISCLOSURES OF FINANCING AND PERSONNEL LIMITATION ON ACCEPTANCE OF DONATIONS SEC. 5. (a) (1) The President-elect and Vice-President-elect (as a condition for receiving services under section 3 and for funds pro-vided under section 6(a)(1)) shall disclose to the Administrator the date of contribution, source, amount, and expenditure

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thereof of all money, other than funds from the Federal Government, and including currency of the United States and of any foreign nation, checks, money orders, or any other negotiable instruments payable on demand, received either before or after the date of the general elections for use in the preparation of the President-elect or Vice President-elect for the assumption of official duties as President or Vice President. (2) The Preside elect and Vice-President-elect (as a condition for receiving such services and funds) shall make available to the Administrator and the Comptroller General all information concerning such contributions as the Administrator or Comptroller General may require for purposes of auditing both the public and private funding used in the activities authorized by this Act. (3) Disclosures made under paragraph (1) shall be — (A) in the form of a report to the Administrator within 30 days after the inauguration of the President-elect as President and the Vice-President-elect as Vice President; and (B) made available to the public by the Administrator upon receipt by the Administrator. (b) (1) The President-elect and Vice-President-elect (as a condition for receiving services provided under section 3 and funds provided under section 6(a) (1)) shall make available to the public — (A) the names and most recent employment of all transition personnel (full-time or part-time, public or private, or volunteer) who are members of the President-elect or Vice- President elect's Federal department or agency transition teams; and (B) information regarding the sources of funding which support the transition activities of each transition team member. (2) Disclosures under paragraph (1) shall be made public before the initial transition team contact with a Federal department or agency and shall be updated as necessary. (c) The President-elect and Vice-President-elect (as a condition for receiving services under section 3 and for funds provided under section 6(aXl)) shall not accept more than $5,000 from any person, organization, or other entity for purposes of carrying out activities authorized by this Act.”

Sec. 4. Limitation on Expenditures of Certain Funds (a) USE OF AIRCRAFT — Section 3(a)(4) of the Presidential Transition Act of 1963 (3 U.S.C. 102 note) is amended — (1) by inserting (A) after (4); (2) by adding at the end thereof the following new subparagraph: (B) When requested by the President-elect or Vice-President-elect or their designee, and approved by the President, Government aircraft may be provided for transition purposes on a reimbursable basis; when requested by the Presidentelect, the Vice-President-elect, or the designee of the president-elect or VicePresident-elect, aircraft may be chartered for transition purposes; and any collections from the Secret Service, press, or others occupying space on chartered aircraft shall be deposited to the credit of the appropriations made under section 6 of this Act;

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Stephanie Smith (b) DURATION OF EXPENDITURES — Section 3(b) of the Presidential Transition Act of 1963 is amended to read as follows: (b) The Administrator may not expend funds for the provision of services and facilities under section 3 of this Act in connection with any obligations incurred by the President-elect or Vice-President-elect — (1) before the day following the date of the general elections held to determine the electors of President and Vice President under section 1 or 2 of title 3, United States Code; or (2) after 30 days after the date of the inauguration of the President-elect as President and the inauguration of the Vice President-elect as Vice President. (c) COMMENCEMENT OF EXPENDITURES — Section 4 of the Presidential Transition Act of 1963 is amended by striking out “six months from the date of the expiration” and inserting “seven months from 30 days before the date of the expiration”.

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Sec 5. Disclosure of In-Kind Contributions to 1988-1989 Transition (a) Disclosure as Condition of Receipt of Funds — The President-elect and VicePresident-elect (as a condition for receiving services under section 3 and for funds provided under section 6(a)(1) of the Presidential Transition Act of 1963 (3 U.S.C. 102 note) shall provide an estimate to the Administrator of General Services of the aggregate value of in-kind contributions made during the period beginning on November 9, 1988, through January 20, 1989, received for transition activities for — (1) transportation; (2) hotel and other accommodations; (3) suitable office space; and (4) furniture, furnishings, office machines and equipment, and office supplies. (b) Form and Availability of Estimates — The estimates made under subsection (a) shall be — (1) in the form of a report to the Administrator of General Services within 90 days after January 20, 1989; and (2) made available to the public by the Administrator upon receipt by the Administrator.

Sec 6. Travel and Transportation Expenses Section 5723 of title 5, United States Code, is amended — (1) in, subsection (a)(1), by striking out or (B) and inserting or (C); (2) in subsection (a), by adding at the end thereof. “In the case of an appointee described in paragraph (1) who has performed transition activities under section 3 of the Presidential Transition Act of 1963 (3 U.S.C. 102 note), the provisions of paragraphs (1) and (2) may apply to travel and transportation expenses from the place of residence of such appointee (at the time of relocation following the most recent

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general elections held to determine the electors of the President) to the assigned duty station of such appointee”; and (3) in subsection (c), by adding at the end thereof the following: “In the case of an appointee described in subsection (a)(1) who has performed transition activities under section 3 of the Presidential Transition Act of 1963 (3 U.S.C. 102 note), the travel or transportation shall take place at any time after the most recent general elections held to determine the electors of the President.”

Sec. 7. Executive Agency Vacancies (a) Application of Vacancy Provisions to Executive Agencies. — (1) Section 3345 of title 5, United States Code, is amended by striking out “Executive department” and inserting in lieu thereof “ !Executive agency (other than the General Accounting Office)”. (2) The heading for section 3345 of title 5, United States Code, is amended to read as follows: “§3345. Details; to office of head of Executive agency or military department”. (3)The table of section headings for chapter 33 of title 5, United States Code, is amended by amending the item relating to section 3345 to read as follows: 3345. Details; to office of head of Executive agency or military department.

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(b) Extension of Time For Interim Service. — Section 3348 of title 5, United States Code, is amended to read as follows: §3348. Details; limited in time (a) A vacancy caused by death or resignation may be filled temporarily under section 3345, 3346, or 3347 of this title for not more than 120 days except that — (1) if a first or second nomination to fill such vacancy has been submitted to the Senate, the position may be filled temporarily under section 3345, 3346, or 3347 of this title (A) until the Senate confirms the nomination; or (B) until 120 days after the date on which either the Senate rejects the nomination or the nomination is withdrawn; or (2) if the vacancy occurs during an adjournment of the Congress sine die, the position may be filled temporarily until 120 days after the Congress next convenes, subject thereafter to the provisions of paragraph (1) of this subsection. (b) Any person filling a vacancy temporarily under section 3345, 3346, or 3347 of this title whose nomination to fill such vacancy has been submitted to the Senate may not serve after the end of the 120-day period referred to in paragraph (I)(B) or (2) of subsection (a) of this section, if the nomination of such person is rejected by the Senate or is withdrawn.” References: H.R. 3932 (and S. 2037), 100th Congress Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

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H.Rept. 100-532, from the Committee on Government Operations S.Rept. 100-317, from the Committee on Governmental Affairs Mar. 16, 1988

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Sept. 17, 1987, Oct. 14, 1987, and Feb. 17, 1988 Mar. 31, 1988 Apr. 26, 1988 Apr. 28, 1988

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July 26, 1988

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Aug. 2, 1988 Aug. 17, 1988

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hearings held by House Government Operations Subcommittee on Legislation and National Security. hearings held by Senate Committee on Governmental Affairs H.R. 3932 passed by the House S. 2037 passed by the Senate H.R. 3932 passed by the Senate, amended, in lieu of S. 2037 House concurred in Senate amendment, with an amendment Senate concurred in House amendment signed into law as P.L. 100-398

PRESIDENTIAL TRANSITION ACT OF 1963, AMENDMENTS: P.L. 94-499, OCTOBER 14, 1976; 90 STAT. 2380

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An Act To revise the appropriation authorization for the Presidential Transition Act of 1963, and for other purposes. Be it enacted by the Senate and House of Representatives,8 of the United States of America in Congress assembled, That (a) section 5 of the Presidential Transition Act of 1963 (3 U.S.C. 102 note) is amended to read as follows: “SEC. 5. There are hereby authorized to be appropriated to the Administrator such funds as may be necessary for carrying out the purposes of this Act, except that with respect to any one Presidential transition — (1) not more than $2,000,000 may be appropriated for the purposes of providing, services facilities to the President-elect and Vice President-elect under section 3, and (2) not more than $1,000,000 may be appropriated for the purposes of providing services and facilities to the former President and former Vice President under section 4. The President shall include in the budget transmitted to Congress, for each year in which his regular term of office will expire, a proposed appropriation for carrying out the purposes of this Act.” (b) Section 3(a)(2) of the Presidential Transition Act of 1963 is amended by striking out “at rates not to exceed $100 per diem for individuals”. SEC. 2. Section (a)(2) of the Presidential Transition Act of 1963 is amended by striking out “or nonreimbursable”. SEC. 3. The amendment made by the first section of this Act shall take effect on —

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(1) the date of the enactment of this Act, or (2) October 1, 1976, whichever is later. References: H.R. 14886, 94th Congress H.Rept. 94-1442, from the Committee on Government Operations S.Rept. 94-1322, from the Committee on Government Operations Aug. 4, 1976

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Sept. 1, 1976 Sept. 30, 1976 Oct. 14, 1976

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hearings held by House Government Operations Subcommittee on Legislation and National Security passed House passed Senate signed into law as P.L. 94-499.

PRESIDENTIAL TRANSITION ACT OF 1963: P.L. 88-277, MARCH 7, 1964; 78 STAT. 153 An Act To promote the orderly transfer of the executive power in connection with the expiration of the term of office of a President and the inauguration of a new President. Be it enacted by the Senate and House of Representatives of the United States ofAmerica in Congress assembled, That this Act may be cited as the Presidential Transition Act of 1963.

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Purpose of This Act SEC. 2. The Congress declares it to be the purpose of this Act to promote the orderly transfer of executive power in connection with the expiration of the term of office of a President and the inauguration of a new President. The national interest requires that such transitions in the office of President be accomplished so as to asure continuity in the faithful execution of the laws and in the conduct of the affairs of the Federal Government, both domestic and foreign. Any disruption occasioned by the transfer of the executive power could produce results deterimental to the safety and well of the United States and its people. Accordingly, it is the intent of the Congress that appropriate actions be authorized and taken to avoid or minimize any disruption. In addition to the specific provisions contained in this Act directed toward that purpose, it is the intent of the Congress that all officers of the Government so conduct the affairs of the Government for which they exercise responsibility and authority as (1) to be mindful of problems occasioned by transitions in the office of President, (2) to take appropriate lawful steps to avoid or minimize disruptions that might be occasioned by the transfer of the executive power, and (3) otherwise to promote orderly transitions in the office of President.

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Stephanie Smith

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Services and Facilities Authorized to be Provided to Presidents-Elect and Vice-Presidents-Elect SEC. 3. (a) The Administration of General Services, referred to hereafter in this Act as “the Administrator,” is authorized to provide, upon request, to each President-elect and each Vice- President, for in connection with his preparations for the assumption of official duties and President or Vice President necessary services and facilities, including — (1) Suitable office space appropriately equipped with furniture, furnishings, office machines and equipment, and office supplies, as determined by the Administrator, after consultation with the President-elect, the Vice-Presidentelect, or their designee provided for in subsection (e) of this section, at such place or places within the United States as the President- elect or Vice-Presidentelect shall designate; (2) Payment of the compensation of members of office staffs designated by the President- elect or Vice-President-elect at rates determined by them not to exceed the rate provided by the Classification Act of 1949, as amended, for grade GS-18: Provided, That any employee of any agency of any branch of the Government may be detailed to such staffs on a reimbursable or nonreimbursable basis with the consent of the head of the agency; and while so detailed such employee shall be responsible only to the President-elect or VicePresident-elect for the performance of his duties: Provided further, That any employee so detailed shall continue to receive the compensation provided pursuant to law for his regular employment, and shall retain the rights and privileges of such employment without interruption. Notwithstanding any other law, persons receiving compensation as members of office staffs under this subsection, other than those detailed from agencies, shall not be held or considered to be employees of the Federal Government except for purposes of Civil Service Retirement Act, the Federal Employees' Compensation Act, the Federal Employees' Group Life Insurance Act of 1954, and the Federal Employee Health Benefits Act of 1959; (3) Payment of expenses for the procurement of services of experts or consultants or organizations thereof for the President-elect or Vice-President-elect, as authorized for the head of any department by section 15 of the Administrative Expenses Act of 1946, as amended (5 U. S.C. 55a), at rates not to exceed $100 per diem for individuals; (4) Payment of travel expenses and subsistence allowances, including rental of Government or hired motor vehicles, found necessary by the President-elect or Vice-Presidentelect, as authorized for persons employed intermittently or for persons serving without compensation by section 5 of the Administrative Expenses Act of 1946, as amended (5 U. S. C. 73b-2), as may be appropriate; (5) Communications services found necessary by the President-elect or VicePresident elect; (6) Payment of expenses for necessary printing and binding, notwithstanding the Act of January 12, 1895, and the Act of March 1, 1919, as amended (44 U. S. C. 111);

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(b)

(c)

(d)

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(e)

(f)

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(7) Reimbursement to the postal revenues in amounts equivalent to the postage that would otherwise be payable on mail matter referred to in subsection (d) of this section. The Administration shall expend no funds for the provision of services and facilities under this Act in connection with any obligations incurred by the President-elect or Vice-President-elect before the day following the date of the general elections held to determine the electors of President and Vice President in accordance with title 3, United States Code, sections 1 and 2, or after the inauguration of the President-elect as President and the inauguration of the Vice-President-elect as Vice President. The terms “President-elect” and “Vice-President-elect” as used in this Act shall mean such persons as are the apparent successful candidates for the office of President and Vice President, respectively, as ascertained by the Administrator following the general elections held to determine the electors of President and Vice President in accordance with title 3, United States Code, sections 1 and 2. Each President-elect shall be entitled to conveyance within the United States and its territories and possessions of all mail matter, including airmail, sent by him in connection with his preparations for the assumption of official duties as President, and such mail matter shall be transmitted as penalty mail as provided in title 39, United States Code, section 4152. Each Vice- President-elect shall be entitled to conveyance within the United States and its territories and possessions of all mail matter, including airmail, sent by him under his written autograph signature in connection with his preparation for the assumption of official duties as Vice President. Each President-elect and Vice President-elect may designate to the Administrator an assistant authorized to make on his behalf such designations or findings of necessity as may be required in connection with the services and facilities to be provided under this Act. Not more than 10 per centum of the total expenditures under this Act for any President-elect or Vice-President-elect may be made upon the basis of a certificate by him or the assistant designated by him pursuant to this section by him or the assistant designated by him pursuant to this section that such expenditures are classified and are essential to the national security, and that they accord with the provisions of subsections (a), (b), and (d) of this section. In the case where the President-elect is the incumbent President or in the case where the Vice- President-elect is the incumbent Vice President, there shall be no expenditures of funds for the provision of services and facilities to such incumbent under this Act, and any funds appropriated for such purposes shall be returned to the general funds of the Treasury.

Services and Facilities Authorized to be Provided to Former Presidents and Former Vice Presidents SEC. 4. The Administrator is authorized to provide, upon request, to each former President and each former Vice President, for a period not to exceed six months from the date of the expiration of his term of office as President or Vice President, for use in connection with winding up the affairs of his office, necessary services and facilities of the same general

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character as authorized by this Act to be provided to Presidents-elect and Vice Presidentselect. Any person appointed or detailed to serve a former President or former Vice President under authority of this section shall be appointed or detailed in accordance with, and shall be subject to, all of the provisions of section 3 of this Act applicable to persons appointed or detailed under authority of that section. The provisions of the Act of August 25, 1958 (72 Stat. 838; 3 U.S.C. 102, note), other than subsections (a) and (e) shall not become effective with respect to a former President until six months after the expiration of his term of office as President.

Authorization of Appropriations SEC. 5. There are hereby authorized to be appropriated to the Administrator such funds as may be necessary for carrying out the purposes of this Act but not to exceed $900,000 for any one Presidential transition, to remain available during the fiscal year in which the transition occurs and the next succeeding fiscal year. The President shall include in the budget transmitted to the Congress, for each fiscal year in which his regular term of office will expire, a proposed appropriation for carrying out the purposes of this Act.

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References: H.R. 4638, 88th Congress H.Rept. 88-301, from Committee on Government Operations S.Rept. 88-448, from Committee on Government Operations Conference Committee Report, H.Rept. 88-1148 April 24, 1963

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July 25, 1963 Oct. 17, 1963 Feb. 24, 1964 Feb. 25, 1964 Mar. 7, 1964

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hearings held by House Government Operations Subcommittee on Executive and Legislative Reorganization passed the House passed the Senate, with amendments Conference Report adopted and passed the Senate Conference Report adopted and passed the House signed into law as P.L. 88-277

End Notes 1

Alvin S. Felzenberg, ed., The Keys to a Successful Presidency (Washington: Heritage Foundation, 2000), p. 7. For a detailed discussion of early presidential transitions, see also Laurin L. Henry, Presidential Transitions (Washington: Brookings Institution, 1960). A discussion of the four most recent transitions can be found in John P. Burke, Presidential Transitions: From Politics to Practice (Colorado: Lynne Rienner Publishers, 2000). 2 P.L. 88-277, March 4, 1964; 78 Stat. 153; 3 U.S.C. § 102 note. Although signed in 1964, the act carries the 1963 designation. 3 P.L. 94-499, Oct. 14, 1976; 90 Stat. 2380. 4 P.L. 100-398, Aug. 17, 1988; 102 Stat. 985. 5 P.L. 106-293, Oct. 13, 2000. 6 Establishing the President's Commission on Campaign Costs, E.O. 10974, Nov. 8, 1961, 3 CFR 496 (1959-1963 Compilation).

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U.S. President's Commission on Campaign Costs, Financing Presidential Campaigns, Apr. 1962 (Washington: GPO, 1962), p. 36. 8 Ibid., pp. 23-24. 9 Ibid., p. 24. 10 President John F. Kennedy, 1962, Public Papers of the Presidents, Letter to the President of the Senate and to the Speaker of the House Transmitting Bills to Carry Out Recommendations of the Commission on Campaign Costs, May 29, 1962 (Washington: GPO, 1963), p. 446. 11 3 U.S.C. § 102 note. 12 U.S. Congress, Senate Committee on Government Operations, Presidential Transition Act, Distribution of Federal Surplus Property, and Records Management, hearings, 94th Cong., 2nd sess., Sept. 13, 1976 (Washington: GPO, 1976), p. 3. 13 U.S. General Accounting Office, Federal Assistance for Presidential Transitions, Nov. 16, 1970 (Washington: GPO, 1970), p. 24. 14 Ibid., p. 3. 15 U.S. General Accounting Office, The Reagan-Bush Transition Team's Activities at Six Selected Agencies, Jan. 28, 1982 (Washington: GPO, 1982), p. 3. 16 GAO, Federal Assistance for Presidential Transitions, pp. 41-42. 17 U.S. General Accounting Office, Audit of Ford-Carter Presidential Transition Expenditures, Dec. 23, 1977 (Washington: GPO, 1977), p. i. 18 GAO, Federal Assistance for Presidential Transitions, p. 45. 19 U.S. General Accounting Office, Recommendations for Changes in Legislation, Dec. 24, 1975 (Washington: GPO, 1975), p. 2. 20 U.S. Department of Justice, Office of Assistant Attorney General, letter to the Administrator of the General Services Administration from Mary C. Lawton, Acting Assistant Attorney General, Office of Legal Counsel, Washington, DC, Aug. 15, 1974. 21 P.L. 93-554, Dec. 27, 1974; 88 Stat. 1771, at 1782. An additional amount of $100,000 was also appropriated to former President Nixon for pension, allowances, and office staff under the Former Presidents Act (3 U.S.C. 102 note). 22 GAO, Recommendations for Changes in Legislation, pp. 5-6. 23 P.L. 94-499, Oct. 14, 1976; 90 Stat. 2380; 3 U.S.C. 102 note. 24 GAO, The Reagan-Bush Transition Team's Activities at Six Selected Agencies, p. 3. 25 GAO, Audit of Ford-Carter Presidential Transition Expenditures, p. ii. 26 Ibid., pp. 11-12. 27 Data obtained from General Services Administration, Nov. 28, 1990. 28 Ibid. 29 GAO, Reagan-Bush Transition Team's Activities at Six Selected Agencies, p. iv. 30 U. S . General Accounting Office, Audit of Reagan Presidential Transition Expenditures, March 2, 1981 (Washington: GPO, 1981), p. 1. 31 U.S. Congress, Senate, Presidential Transitions Effectiveness Act of 1988, April 20, 1988, S.Rept. 100-317, 100th Cong., 2nd sess. (Washington: GPO, 1988), p. 10. 32 Ibid., pp. 4-5. 33 Ibid., p. 7 34 P.L. 100-398, Aug. 17, 1988; 102 Stat. 985. 35 See CRS Report 98-249, Former Presidents: Federal Pension and Retirement Benefits, by Stephanie Smith. 36 Data supplied by General Services Administration, Nov. 28, 1990. 37 Dire Emergency Supplemental Appropriations and Transfers, Urgent Supplementals, and Correcting Enrollment Errors Act of 1989, P.L. 101-45, June 30, 1989; 103 Stat. 126. 38 P.L. 101-45, June 30,1989; 103 Stat. 116; see also U.S. Congress, House, Committee on Appropriations, Subcommittee on the Treasury, Postal Service, and General Government Appropriations, Treasury, Postal Service, and General Government Appropriations for Fiscal Year 1993, part 5, Feb. 25, 1992, hearings (Washington: GPO, 1992), p. 536. 39 P.L. 102-393, Oct. 5, 1992; 106 Stat. 1729. 40 Data provided by GSA Budget Office in Oct. 23, 2000, telephone conversation. 41 114 Stat. 1035. 42 In the event Vice President Gore had become President, the $305,000 appropriation designated to him as part of the outgoing Clinton Administration would have been returned to the Treasury. He would have been entitled to the full amount of $4.27 million appropriated for the incoming President-elect. 43 H.R. 4516, section 1001, Title IV; vetoed Oct. 30, 2000. 44 P.L. 106-426, Nov. 3, 2000; 114 Stat. 1897. 45 Information received from GSA's budget office on Oct. 7, 2004. 46 U.S. Executive Office of the President, Budget of the United States Government, Fiscal Year 2005, Appendix (Washington: 2004), p. 972.

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47

Ibid. U.S. Congress, House Committee on Appropriations, Transportation, Treasury, and Independent Agencies Appropriations Act, 2005, report to accompany H.R. 5025, 108th Cong., 2nd sess., H.Rept. 108-671 (Washington: GPO, 2004), p. 146. 49 U.S. Congress, Senate Committee on Appropriations, Transportation, Treasury, and Independent Agencies Appropriations Act, 2005, report to accompany S. 2806, 108th Cong., 2nd sess., S.Rept. 108-342 (Washington: GPO, 2004), p. 186. 50 118 Stat. 3253. 51 P.L. 108-458, Dec. 17, 2004; 118 Stat. 3638. 52 118 Stat. 3856. 53 U.S. Office of Management and Budget, Budget of the United States Government, Fiscal Year 2009 Appendix (Washington: GPO, 2008), p. 1075. 54 Laurin L. Henry, Presidential Transitions (Washington: The Brookings Institution, 1960), p. 58. This book provides an in-depth study of presidential transitions before 1960. 55 President Harry S. Truman, 1952-1953, Public Papers of the Presidents, Letter of Invitation to the PresidentElect, Nov. 6, 1952 (Washington: GPO, 1953), pp. 1048-1049. 56 Henry, Presidential Transitions, pp. 513-514. 57 David T. Stanley, Changing Administrations (Washington: Brookings Institution, 1965), p. 6. 58 "Pre-Inaugural Task Forces Unprecedented in History," Congressional Quarterly Weekly Report, vol. 19, April 7, 1961, p. 620. 59 Ibid. 60 Ibid., p.621. 61 Ibid. 62 Ibid. 63 "Presidential Transition," Congressional Quarterly Weekly Report, Sept. 20, 1968, vol. 26, p. 2506. 64 Alan L. Otten, "Nixon Works to Ensure an Efficient Take-Over If He Gains Presidency," Wall Street Journal, Oct. 25, 1968, p. 1. 65 Carroll Kilpatrick, "Nixon Won't Flood Congress with New Legislation, Aides Say," Washington Post, Dec. 22, 1968, pp. Al and A6. 66 James M. Naughton, "The Change in President: Plans Began Months Ago," New York Times, Aug. 26, 1974, p. 1. 67 Morton Mintz and Stuart Auerbach, "Ford Solicits Suggestions on No. 2 Man," Washington Post, Aug. 11, 1974, p. A 1 . 68 Fred Austin, "Ford Begins Move to Reshape his Administration,"National Journal, Dec. 14, 1974, vol. 7, p. 1877. 69 Laurence Stern, "Transition Unit at Work for Carter," Washington Post, Aug. 9, 1976, p. Al. 70 Washington Post, Aug. 9, 1976, p. A2. 71 Ibid. 72 Fredrick Smith, "Georgian Is Urged to Appoint 100 to Prepare Washington Takeover," New York Times, Nov. 4, 1976, p. 21. 73 Jules Witcover, "Blueprint for Transition Going to Carter," Washington Post, Nov. 4, 1976, p. A18. 74 Bruce F. Freed, "New Heads for Many Regulatory Bodies Expected to Be Named at Once by Carter," Wall Street Journal, Nov. 11, 1976, p. 3. 75 Lou Cannon, "Reagan Promises to Heal and Unify," Washington Post, Nov. 5, 1980, p. A20. 76 Dick Kirschten, "The Reagan Team Comes to Washington, Ready to Get Offto a Running Start," National Journal, Nov. 15, 1980, p. 1926. 77 Michael Getler, “Reagan Advisers Setting Up Special Teams to Oversee Transition," Washington Post, Nov. 11, 1980, p. Al. 78 Lee Lescaze, "Transition Team Is Announced," Washington Post, Nov. 7, 1980, p. Al. 79 Lee Lescaze, "The Changing of the Guard Commences: Transition Team is Announced," Washington Post, Nov. 7, 1980, pp. Al, A3. 80 T. R. Reid and Lee Lescaze, "Carter to Defer Action on Major Policy Issues," Washington Post, Nov. 13, 1980, p. Al. 81 David Hoffman, "Bush Names Baker Secretary of State," Washington Post, Nov. 10, 1988, pp. Al and A38. 82 Judith Havemann, "Bush to Get 2,500 Conservative Resumes," Washington Post, Nov. 15, 1988, p. A17. 83 Jessica Lee, "Bush Taps Reagan Aides for Cabinet, Budget," USA Today, Nov. 22, 1988, p. 8A. 84 Ibid. 85 Jessica Lee, "Agencies Told to Give Data to Transition Team," USA Today, Nov. 23, 1988, p. 6A. 86 Adam Nagourney and Bill Nichols, "Clinton Camp Crafts Lineup," USA Today, Oct. 20, 1992, p. 2A. 87 George Bush, "The Way We See It ... The People Have Spoken," Washington Post, Nov. 4, 1992, p. A22. 88 Bill Nichols, "Bush Cooperation," USA Today, Nov. 6, 1992, p. 5A. 89 Thomas W. Lippmen, "Taking Full Responsibility for Loss," Washington Post, Nov. 8, 1992, p. Al. 99 Adam Nagourney and Bill Nichols, "Clinton Shifts Transition to High Gear," USA Today, Nov. 6, 1992, p. Al. 91 Ruth Marcus and Al Kamen, "Clinton Names Transition Chiefs," Washington Post, Nov. 7, 1992, p. Al.

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Presidential Transitions

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Executive Office of the President, Memorandum from Chief of Staff John Podesta for the Heads of Executive Departments and Agencies, "Presidential Transition Guidance," Nov. 13, 2000. 93 U.S. General Services Administration, Office of Communications statement released Nov. 27, 2000. 94 Rep. Dante Fascell, "Presidential Transition Act of 1963," remarks in the House, Congressional Record, vol. 109, July 25, 1963, p. 12238. 95 U.S. General Services Administration, Office of Communications, Media Advisory Presidential Transition Fact Sheet, Nov. 17, 2000. 96 "Transcript of Former Secretary Richard Cheney's News Conference," Washington Post, Nov. 27, 2000, p. A9. 97 U.S. Congress, House Committee on Government Reform, Subcommittee on Government Management, Information, and Technology, Transitioning to a New Administration: Can the Next President be Ready? hearing, 106th Cong., 2nd sess., Dec. 4, 2000 (Washington: GPO, 2001), p. 3. 98 U.S. General Accounting Office, Presidential Transition: Challenges and Opportunities, Dec. 4, 2000 (Washington: GPO, 2000), p. 1. 99 U.S. General Services Administration, Office of Communications statement released Dec. 13, 2000. 100 Mike Allen and Dana Milbank, "Bush Reaches Out to Democrats," Washington Post, Dec. 15, 2000, p. Al. 101 Mike Allen and Dana Milbank, "Cabinet Chosen Quietly, Quickly," Washington Post, Jan. 7, 2001, p. Al. 102 P.L. 106-426, Nov. 3, 2000. 103 James P. Pfiffner, The Strategic Presidency: Hitting the Ground Running (Chicago, Dorsey Press, 1988); pp. 918, see also Robert K. Landers, The Dangers in Presidential Transitions (Washington: Editorial Research Reports, 1988), p. 1. 104 U.S. Congress, Senate Committee on Governmental Affairs, Presidential Transitions Effectiveness Act of 1988, p. 6. 105 Ibid., see also: Presidential Transition Effectiveness Act, hearings, 100th Cong., 1st and 2nd sess., Sept. 17, Oct. 14, 1987, and Feb. 17, 1988 (Washington: GPO, 1988), pp. 23-38. 106 U.S. Congress, Senate Committee on Governmental Affairs, Presidential Transition Act of 2000, 106th Cong., 2nd sess., S.Rept. 106-348 (Washington: GPO, 2000), p. 2. 107 Alvin S. Felzenberg, ed., The Keys to a Successful Presidency, p. 18. 108 John P. Burke, Presidential Transitions: From Politics to Practice, p. 96. 109 Carl Brauer, "Lost in Transition," The Atlantic Monthly, Nov. 1988, p. 74. 110 John P. Burke, Presidential Transitions: From Politics to Practice, p. 225. 111 National Academy of Public Administration, The Executive Presidency: Federal Management for the 1990s (Washington: National Academy of Public Administration, 1988), p. 5. 112 Kenneth W. Thompson, ed., Presidential Transitions: The Reagan to Bush Experience (University of Virginia: University Press of America, 1993), p. 5. 113 Landers, "Dangers in Presidential Transitions," Editorial Research Reports, pp. 528-529. 114 Bill Nichols, "Clinton Sets New Sights," USA Today, Nov. 5, 1992, p. Al. 115 Wallace Earl Walker and Michael R. Reopel, "Strategies for Governance: Transition and Domestic Policymaking in the Reagan Administration,"Presidential Studies Quarterly, vol. 16, fall 1986, p. 736. 116 Walker and Reopel, “Strategies for Governance: Transition and Domestic Policymaking in the Reagan Administration,” p. 739.

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Chapter 2

PRESIDENTIAL TRANSITIONS: BACKGROUND AND FEDERAL SUPPORT Stephanie Smith

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SUMMARY The Presidential Transition Act (PTA), as amended, authorizes funding for the General Services Administration (GSA) to provide suitable office space, staff compensation, and other services associated with the transition process.1 Section 5 of the PTA authorizes the President to include in his budget request for each fiscal year in which his regular term of office will expire, a proposed appropriation for carrying out the purposes of the act. The President's FY2009 budget requests $8,520,000 in funding for the upcoming presidential transition. Of this total, $1 million is provided for briefings and related transition services for incoming personnel associated with the new administration.

INTRODUCTION Since President George Washington first relinquished his office to incoming President John Adams in 1797, this peaceful transition, symbolizing both continuity and change, has demonstrated the “est of American democracy to the world.”2Today, however, the activities surrounding a presidential transition begin shortly after the election, as the President-elect has less than 11 weeks to formulate the new administration before taking the oath of office on January 20. The significance of the relatively short transition period recently came under intense scrutiny against the background of the historic and dramatic events surrounding the presidential election of 2000. With less than five weeks available for formal transition preparations, Vice President-elect Richard Cheney stated on December 14, 2000, that the transition was “ell under way ... to have a Cabinet in place by the inauguration.”3 While a formal transition process is essential to ensure continuity in the conduct of the affairs of the executive branch, the concept of a federally funded transition period is relatively new. Before enactment of the Presidential Transition Act in 1964, the primary source of

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funding for transition expenses was the political party organization of the incoming President.4

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TRANSITION FUNDING As enacted in 1964, the PTA provided a $900,000 authorization for GSA to provide suitable office space, staff compensation, and other services associated with the transition process. Since that time, the PTA has been amended on three occasions to provide increases in funding and to prescribe additional requirements for GSA.5 Currently, funding is authorized for an incoming Administration from the day following the general election until 30 days after the inauguration. For the outgoing President and Vice President, transition funding is available for seven months, beginning one month before the inauguration, until six months after their terms of office, to facilitate their relocation to private life.6 As a condition for receiving federal funding and services, the President-elect and Vice President-elect must formally disclose the dates, sources, and amounts of all private contributions for the transition, with a maximum contribution of $5,000 allowed from any person or organization. These written disclosures must be made to GSA not later than 30 days after the January 20 inauguration. The PTA also limits all temporary appointments to executive branch vacancies to 120 days, unless a nomination has been submitted to the Senate. The PTA was amended in 2000 to prescribe additional requirements for GSA to coordinate the development and presentation of orientation sessions for the President- elect's nominees for Cabinet and high-level executive branch positions. In conjunction with the National Archives and Records Administration (NARA), GSA was also required to create a transition directory, composed of federal publications and materials pertaining to the statutory and administrative functions of each federal department and agency. A third major provision required the Office of Government Ethics to prepare a report on needed improvements to the financial disclosure process for presidential nominees. For FY2001, GSA was appropriated a total of $7.1 million for the 2000-2001 transition.7 Of this total, $1.83 million was provided for the outgoing Administration of President William Clinton; $4.27 million for the incoming Administration of President- elect George W. Bush; and $1 million for GSA to provide orientation sessions and related assistance for the incoming Bush appointees.8 Section 6 of the PTA authorizes the President to include in his budget request for each fiscal year in which his regular term of office will expire, a proposed appropriation for carrying out the purposes of the act. In order to provide federal funding in the event of a 2004 presidential transition, the President's FY2005 budget proposal requested a total of $7.7 million. Of this total, $1 million would be provided for briefings and related transition services for incoming personnel associated with a new administration.9 Currently, Section 3(f) of the PTA states that there shall be no expenditures of funds for the provision of services and facilities in the event the President-elect is the incumbent President, or when the Vice President-elect is the incumbent Vice President. Any funds appropriated for such purposes “shall be returned to the general funds of the Treasury.” In the

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Presidential Transitions: Background and Federal Support

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event no transition occurs, the President's FY2005 budget request for GSA proposed to amend the PTA through appropriation language to permit the expenditure of not more than $1 million for training and briefings for incoming appointees associated with the second term of an incumbent President.10 No other expenditure of appropriated funds for transition purposes would be made available to the incumbent President, and the remaining $6.7 million would be returned to the general fund of the Treasury. The House passed H.R. 5025, the FY2005 Transportation, Treasury, and Independent Agencies appropriations bill, on September 22, 2004. The legislation recommended for GSA a total of $7.7 million for the expenses associated with a possible 2004-2005 presidential transition, which included $1 million to brief incoming personnel. If no transition occurred, H.R. 5025 authorized that $1 million be used by the incumbent President for the training of new appointees associated with a second term of office. The House Committee on Appropriations also recommended the $1 million appropriation to be used by the incumbent President, and stated that the remaining $6.7 million in transition funds would be returned to the Treasury, if no transition occurred.11 Following its passage, H.R. 5025 was received in the Senate on September 29, 2004, and placed on the Senate Legislative Calendar. In the Senate, S. 2806, the FY2005 Transportation, Treasury, and Independent Agencies appropriations bill, also recommended a total of $7.7 million for GSA to implement a possible presidential transition, including $1 million for incoming appointees. However, the Senate Committee on Appropriations denied the request to amend the PTA to allow $1 million for training and briefings for incoming appointees associated with the second term of an incumbent President. The committee stated that it had no objection to funding such training, but believed that “it should be properly budgeted for and requested by the appropriate agencies.”12 On September 15, 2004, S. 2806 was reported to the Senate and placed on the Senate Legislative Calendar. P.L. 108-309 was enacted on September 30, 2004, to provide continuing non-defense appropriations through November 20. A total of $2.5 million was authorized in the event of a presidential transition, until enactment of the FY2005 omnibus appropriations bill. Any transition expenditures made pursuant to P.L. 108-309 were to be charged to the applicable authorization once the FY2005 omnibus legislation was enacted. Due to the outcome of the 2004 presidential election, no funds were provided in P.L. 108-447, the FY2005 Consolidated Appropriations Act.13 The President's FY2009 budget requests $8,520,000 to provide funding for the upcoming presidential transition. Of this total, $1 million is provided for briefings and related transition services for incoming personnel associated with the new administration.14

CLINTON-BUSH TRANSITION As a result of the ballot challenges concerning the November 7, 2000, presidential election, White House Chief of Staff John Podesta issued a November 13, 2000, memorandum to executive branch agencies stating that, “because of the uncertainty over election results, no President-elect has been identified to receive federal funds and assistance under the Presidential Transition Act of 1963.”15 The memo advised executive branch officials to provide any assistance that was “typically” provided to presidential candidates.

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Following the certification of the Florida popular vote on November 26, 2000, by the Florida Secretary of State in favor of Governor George W. Bush, GSA Administrator David J. Barram announced the following day that he would not authorize the release of federal transition funds since the final outcome remained “unclear and un¬apparent,”16 due to ongoing legal challenges to the Florida certification. Since the PTA provides no explicit criteria for determining the “apparent successful candidates,” the GSA administrator based his decision on the 1963 legislative history, which stated that, "in a close contest, the Administrator simply would not make the decision.”17 Also at issue was the use of 90,000 square feet of office space in Washington, DC, that GSA had leased in anticipation of the transition period between election day on November 7 and the presidential inauguration on January 20, 2001, at a cost of approximately $700,000.18 In response to GSA's decision to withhold funding and office space, Governor Bush announced the establishment of his transition offices in McLean, VA, to be headed by the vice presidential candidate, former Secretary of Defense Richard Cheney. In a November 27, 2000, news conference, Cheney stated that the Bush-Cheney transition would be funded by private contributions as a “non-profit corporation and will seek 501(c)(4) status from the Internal Revenue Service.”19 On December 4, 2000, oversight hearings on the presidential transition were held before the House Government Reform Subcommittee on Government Management, Information, and Technology. In his opening statement, subcommittee chairman Stephen Horn expressed concern that, in spite of long-standing congressional intent to federally fund presidential transitions, “today — nearly four weeks after the presidential election the administrator says he is still unable to ascertain a winner and, thus, is not providing the appropriate assistance required by the Presidential Transition Act.”20 In a written statement for the hearings record, Comptroller General David M. Walter wrote that, “given the current extraordinary circumstances surrounding the election, Congress should consider extending the existing time limitation on the obligation of funds under the Transition Act to help mitigate the unforeseen delay in the initial release of public funds.”21 As a result of these hearings, H.R. 5643 was introduced in the House on December 6, 2000, to clarify the definition of “apparent successful candidates” to permit the GSA administrator to provide transition funding and services to the President-elect and Vice President-elect as determined by official state certifications. The legislation was referred to the House Committee on Government Reform. Immediately following Vice President Albert Gore’s concession speech on December 13, 2000, GSA Administrator David Barram authorized President-elect George Bush’ use of federal transition funds and office space.22 The following day, GSA Deputy Administrator Thurman Davis presented Vice President-elect Cheney with an electronic card that served as the key to the Washington, DC, transition office, located at 1800 G Street, NW. The BushCheney transition officials assigned to coordinate with congressional staff and prospective Cabinet members were the first to relocate from their McLean, VA, headquarters to the GSA office space. Shortly after President-elect Bush's first formal address to the nation on December 13, he received a congratulatory call from President Bill Clinton. The following day, President-elect Bush announced his plans to travel to Washington, DC, on December 18, to conduct separate visits with President Clinton and Vice President Gore, as well as to conduct interviews with possible Cabinet members.23

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With less than five weeks until his inauguration, President-elect Bush made his Cabinet selections in just 20 days. According to newspaper accounts, the President-elect and his aides used the five weeks of the election dispute to narrow their list of possible appointments, even though they were criticized by some for “resumptuously”proceeding with the transition. With so little time left before he took office, President-elect Bush narrowed his selections to nominees who had previously been through Senate confirmations in the past, selecting Donald Rumsfeld for Secretary of Defense, Colin Powell for Secretary of State, and Norman Mineta for Secretary of Transportation. In addition to their government and corporate expertise, the Cabinet nominees also had long¬standing professional associations with the President-elect and his family.24

End Notes 1

3 U.S.C. § 102 note. Alvin S. Felzenberg, ed., The Keys to a Successful Presidency (Washington: Heritage Foundation, 2000), p. 7. For a detailed discussion of early presidential transitions, see also Laurin L. Henry, Presidential Transitions (Washington: Brookings Institution, 1960). 3 Karen Gullo, “Cheney Gets Transition Office Keys,” USA Today, Dec. 14, 2000, p. 3A. 4 78 Stat. 153. See CRS Report RL30736, Presidential Transitions 1960-2001, by Stephanie Smith. 5 90 Stat. 2380; 102 Stat. 985; and 114 Stat. 711. 6 Separate legislation also provides former Presidents an annual lifetime pension and staff and office allowances after the transition period expires, as well as Secret Service protection. See CRS Report 98-249, Former Presidents: Federal Pension and Retirement Benefits, by Stephanie Smith. 7 114 Stat. 2763. 8 P.L. 100-398 amended the PTA in 1988 to authorize $1.5 million to be appropriated to the outgoing administration and $3.5 million to be appropriated to the incoming administration, with these totals to be increased in future budget requests by an inflation-adjusted amount, based on the costs of the most recent presidential transition. P.L. 106-293 amended the PTA to authorize $1 million for briefings and related transition expenses for incoming presidential appointees. 9 U.S. Office of Management and Budget, Budget of the United States Government, Fiscal Year 2005 Appendix (Washington: 2004), p. 972. 10 Ibid. 11 U.S. Congress, House Committee on Appropriations, Transportation, Treasury, and Independent Agencies Appropriations Act, 2005, report to accompany H.R. 5025, 108th Cong., 2nd sess., H.Rept. 108-671 (Washington: GPO, 2004), p. 146. 12 U.S. Congress, Senate Committee on Appropriations, Transportation, Treasury, and Independent Agencies Appropriations Act, 2005, report to accompany S. 2806, 108th Cong., 2nd sess., S.Rept. 108-342 (Washington: GPO, 2004), p. 186. 13 118 Stat. 3253. 14 U.S. Office of Management and Budget, Budget of the United States Government, Fiscal Year 2009—Appendix (Washington: GPO, 2008), p. 1075. 15 Executive Office of the President, Memorandum from Chief of Staff John Podesta for the Heads of Executive Departments and Agencies, “Presidential Transition Guidance,” Nov. 13, 2000. 16 U.S. General Services Administration, Office of Communications statement released Nov. 27, 2000. 17 Rep. Dante Fascell, “Presidential Transition Act of 1963,” remarks in the House, Congressional Record, vol. 109, July 25, 1963, p. 12238. 18 U.S. General Services Administration, Office of Communications,Media AdvisoryPresidential Transition Fact Sheet, Nov. 17, 2000. 19 “Transcript of Former Secretary Richard Cheney’s News Conference,” Washington Post, Nov. 27, 2000, p. A9. 20 U.S. House of Representatives, Committee on Government Reform, Subcommittee on Government Management, Information, and Technology, Opening Statement by Chairman Stephen Horn, hearings, Dec. 4, 2000. 21 U.S. General Accounting Office, Presidential Transition: Challenges and Opportunities, Dec. 4, 2000 (Washington: GPO, 2000), p. 1. 22 U.S. General Services Administration, Office of Communications statement released Dec. 13, 2000. 23 Mike Allen and Dana Milbank, “ush Reaches Out to Democrats,”Washington Post, Dec. 15, 2000, p. Al. 24 Mike Allen and Dana Milbank, “abinet Chosen Quietly, Quickly,”Washington Post, Jan. 7, 2001, p. Al.

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2

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Chapter 3

THE UPCOMING TRANSITION: GAO’S EFFORTS TO ASSIST THE 111TH CONGRESS AND THE NEXT ADMINISTRATION Gene L. Dodaro

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WHY GAO DID THIS STUDY The upcoming 2009 transition will be a unique and critical period for the U.S. government. It marks the first wartime presidential transition in 40 years. It will also be the first administration change for the relatively new Department of Homeland Security operating in the post 9/11 environment. The next administration will fill thousands of positions across government; there will be a number of new faces in Congress as well. Making these transitions as seamlessly as possible is pivotal to effectively and efficiently help accomplish the federal government’s many essential missions. While the Government Accountability Office (GAO), as a legislative branch agency, has extensive experience helping each new Congress, the Presidential Transition Act points to GAO as a resource to incoming administrations as well. The Act specifically identifies GAO as a source of briefings and other materials to help presidential appointees make the leap from campaigning to governing by informing them of the major management issues, risks, and challenges they will face. GAO has traditionally played an important role as a resource for new Congresses and administrations, providing insight into the issues where GAO has done work. This testimony provides an overview of GAO’s objectives for assisting the 111th Congress and the next administration in their all-important transition efforts.

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Gene L. Dodaro

WHAT GAO FOUND GAO will highlight issues that the new President, his appointees, and the Congress will confront from day one. These include immediate challenges ranging from national and homeland security to oversight of financial institutions and markets to a range of public health and safety issues. GAO will synthesize the hundreds of reports and testimonies it issues every year so that new policy makers can quickly zero in on critical issues during the first days of the new administration and Congress. GAO’s analysis, incorporating its institutional memory across numerous administrations, will be ready by the time the election results are in and transition teams begin to move out.

Objectives for GAO’s Transition Efforts

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Provide insight into pressing national issues. Highlight the growing need for innovative, integrated approaches to solve national and global challenges. Document targeted opportunities to conserve resources that can be applied to new initiatives. Underscore critical capacity-building needs in individual agencies that will affect implementation of whatever new priorities are pursued. Help inform the management improvement agendas of Congress and the new administration. Monitor the implementation of the Presidential Transition Act provisions and identify potential improvements for future transitions. GAO will provide congressional and executive branch policy makers with a comprehensive snapshot of how things are working across government and emphasize the need to update some federal activities to better align them with 21st century realities and bring about government transformation. In keeping with its mission, GAO will be providing Congress and the executive branch with clear facts and constructive options and suggestions that elected officials can use to make policy choices in this pivotal transition year. GAO believes the nation’s new and returning leaders will be able to use such information to help meet both the nation’s urgent issues and long-term challenges so that our nation stays strong and secure now and for the next generation. GAO’s transition work also will highlight the need to modernize the machinery of government through better application of information technology, financial management, human capital, and contracting practices. GAO also will underscore the need to develop strategies for addressing the government’s serious long-term fiscal sustainability challenges, driven on the spending side primarily by escalating health care costsand changing demographics. Chairman Towns, Ranking Member Bilbray, and Members of the Subcommittee: I am pleased to be here today to contribute to your hearing on the upcoming transition. As agreed with the Subcommittee, I will discuss the preparations under way at the

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Government Accountability Office (GAO) to meet our responsibilities under the Presidential Transition Act to assist the incoming administration as well as the 111th Congress. The 2009 presidential transition will be a unique and critical period for the United States. Our nation faces a wartime presidential transition for the first time in 40 years. In addition, this will be the first post-9/11 transition, with a relatively new Department of Homeland Security (DHS) grappling with the threats we face here at home while experiencing its first change in administration. The White House will need to fill thousands of appointments, some of which will be subject to Senate confirmation, across the federal government. And on Capitol Hill, with 26 House members and 5 Senators deciding not to seek reelection, there will also be congressional newcomers. While as a legislative branch agency GAO has extensive experience helping each new Congress, the Presidential Transition Act points to GAO as a resource for incoming administrations as well. The Act specifically identifies GAO as a source of briefings and other materials to help inform presidential appointees of the major management issues, risks, and challenges they will face. The Act’s 2000 amendments to clearly bring GAO into the transition picture are consistent with the role we traditionally have played as an important resource for Congress and new administrations during transitions. For example, we update our High-Risk list with the start of each new Congress to focus attention on areas in need of broad-based transformation or susceptible to waste, fraud, abuse, and mismanagement. During the last presidential transition, we identified for Congress and the then new administration key program and management issues in the major departments and across government. More recently, we assisted the 110th Congress by suggesting 36 areas for oversight based on our work. We take our role under the Presidential Transition Act very seriously; our planning to effectively perform this role is well under way. To do this, we will use our institutional knowledge and broad-based work on matters across the spectrum of government activities. My comments today center on the six objectives of our efforts to assist the upcoming transition as policy makers take on the serious challenges facing our country.

Objectives for GAO’s Transition Efforts Provide insight into pressing national issues. Highlight the growing need for innovative, integrated approaches to solve national and global challenges. Document targeted opportunities to conserve resources that can be applied to new initiatives. Underscore critical capacity-building needs in individual agencies that will affect implementation of whatever new priorities are pursued. Help inform the management improvement agendas of Congress and the new administration. Monitor the implementation of the Presidential Transition Act provisions and identify potential improvements for future transitions.

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PROVIDE INSIGHT INTO PRESSING NATIONAL ISSUES

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The next Congress and new administration will confront a set of pressing issues that will demand urgent attention and continuing oversight to ensure the nation’s security and wellbeing. The goal of our transition planning is to look across the work we have done and across the scope and breadth of the federal government’s responsibilities to offer insights into areas needing immediate attention. A few examples follow: Oversight of financial institutions and markets: As events over the past few weeks have underscored, oversight over the U.S. housing and financial markets will certainly be among the priority matters commanding the attention of the new administration and the 111th Congress. These sectors of our economy have been going through a period of significant instability and turmoil and government support is being provided to a growing number of troubled financial institutions. Congress has taken a number of steps to address some of the immediate effects of the market turmoil including enactment of the Federal Housing Finance Regulatory Reform Act of 2008, which, among other things, strengthens regulation of the housing government-sponsored enterprises (GSE) and provides authority to the Treasury to purchase any amount of Fannie Mae and Freddie Mac securities. We are closely monitoring a range of implications of the current market turmoil including the financial condition of the GSEs and the potential exposures from federal insurance and credit programs and possible bailouts. In addition, recent bank failures and growing numbers of banks on the “Watchlist” raise questions about the impact on the banking system and future federal exposures as well as on the bank insurance fund. We have a larger body of work that involves auditing the Federal Deposit Insurance Corporation, the newly created Federal Housing Finance Agency, and the consolidated financial statements of the U.S. government, as well as evaluating ongoing developments in the housing and financial markets. We will draw on this work to provide observations and advice, as appropriate. While these serious disruptions require immediate attention and careful monitoring, ongoing turmoil in the housing and financial markets has renewed concerns about whether the current system for overseeing and regulating financial institutions and markets is best suited to meet the nation’s evolving needs and 21st century challenges. Later this year we plan to issue a report describing the evolution of the current regulatory structure and how market developments and changes have introduced challenges for the current system. We believe this reassessment is needed to ensure that these types of serious disruptions can be minimized in the future. As part of this work, we are also developing a framework to assist Congress in evaluating alternative regulatory reform proposals. U.S. efforts in Iraq, Afghanistan, and Pakistan: Policy and implementation challenges to achieve U.S. objectives for these countries remain on the horizon. Hundreds of billions of dollars have been provided to the Department of Defense (DOD) for military operations in Iraq, Afghanistan, and Pakistan as well as to the State Department and United States Agency for International Development (USAID) to

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help address security, stabilization and reconstruction, and capacity-building efforts in Iraq and Afghanistan. Some efforts include developing domestic security forces, rebuilding critical infrastructure, and enhancing the countries’ capacity to govern. Since 2003, we have issued more than 170 reports on Iraq, Afghanistan, and Pakistan, covering topics that ranged from the readiness of U.S. forces, to the logistical implications related to reposturing U.S. forces deployed in Iraq, to planning for counterterrorism programs, to progress in building roads and oil pipelines. Our transition work will highlight the major implementation issues that need to be addressed to ensure the development of comprehensive integrated strategies, accountability over resources provided, and ongoing assessments of progress, regardless of what policies are pursued in the future.

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DOD’s readiness and capabilities: Extended operations in Iraq, Afghanistan, and elsewhere have had significant consequences for military readiness, particularly with regard to the Army and Marine Corps. Current operations have required the military to operate at a persistently high tempo with the added stress of lengthy and repeated deployments. In addition, because of the significant wear and tear on equipment, refocusing of training on counterinsurgency operations, and other factors, rebuilding readiness of U.S. forces is a major challenge for DOD. At the same time, DOD faces competing demands for resources given broad-based initiatives to grow, modernize, and transform its forces. We will offer our perspective on the competing demands DOD faces and the need to develop sound plans to guide investment decisions, as it reassesses the condition, size, composition, and organization of its total force, including contractor support, to protect the country from current, emerging, and future conventional and unconventional security threats. Protection at home: DHS must remain prepared and vigilant with respect to securing the homeland, particularly during the transition period when the nation can be viewed as being particularly vulnerable. In doing so, it is important that the new administration address key issues that, as we reported, have impacted and will continue to impact the nation’s security and preparedness, including better securing our borders, enforcing immigration laws, and serving those applying for immigration benefits; defining key preparedness and response capabilities and building and maintaining those capabilities through effective governmental and external partnerships; and further strengthening the security and resiliency of critical infrastructure to acts of terrorism. In achieving its critical mission, we found that DHS needs to more fully integrate and strengthen its management functions, including acquisition and human capital management; more fully adopt risk-based principles in allocating resources to the areas of greatest need; and enhance the effectiveness of information sharing among federal agencies and with state and local governments and the private sector. The decennial census: Soon after taking office, the new administration will face decisions that will shape the outcome of the 2010 decennial census. Next spring the first nationwide field operation—address canvassing—of the census will begin. During address canvassing, the Census Bureau will rely, for the first time, on hand-held computers to verify address and map information. A

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complete and accurate address list is the cornerstone of a successful census. Earlier this year, we designated the decennial census as a high-risk area, in part, because of ongoing challenges in managing information technology— including hand-held computers—and uncertainty over the total cost of the decennial census and the Bureau’s plans for rehearsing its field operations. The Bureau has taken some important steps to get the census back on track but did not rehearse its largest and most costly field operation—non-response followup—and has little time for further course correction as it prepares to carry out the national head count. The results of the 2010 census are central to apportionment, redistricting congressional boundaries, and distributing hundreds of billions of dollars in federal aid. Retirement of the space shuttle: A decision that must be made before the year is out is whether to retire the space shuttle in 2010, as currently planned, or to extend its life in view of limited options for supporting the International Space Station. Already, shuttle contracts are being phased out and shuttle facilities are being closed or transferred to contracts supporting new development efforts. A decision in favor of extending the shuttle may offer the best course for the future of the International Space Station, as (1) the recent conflict between Russian and the Georgian Republic has called into question the wisdom of relying on Russian space vehicles to ferry U.S. crew and cargo to and from the station during a 5-year gap in U.S. human spaceflight capability and (2) it still appears that other vehicles being developed to support the station—including those from commercial suppliers as well as NASA—may not be ready when anticipated. However, extending the shuttle could also have significant consequences on the future direction of human spaceflight for the U.S. Specifically, NASA is counting on the retirement of the shuttle to free up resources to pursue a new generation of space flight vehicles for exploration, which are anticipated to come on-line in 2015. According to NASA, reversing current plans and keeping the shuttle flying past 2010 would cost $2.5 billion to $4 billion per year. In addition, extending the shuttle will likely be logistically difficult, particularly since it would require restarting production lines and possibly recertifying suppliers as well as the shuttle vehicles. While facing pressing issues, the next Congress and new administration also inherit the federal government’s serious long-term fiscal challenge—driven on the spending side by rising health care costs and changing demographics. This challenge is complicated by the need to timely address developments such as the recent economic pressures and troubles in the housing and financial markets. Ultimately, however, the new administration and Congress will need to develop a strategy to address the federal government’s long-term unsustainable fiscal path.

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HIGHLIGHT THE GROWING NEED FOR INNOVATIVE, INTEGRATED APPROACHES TO SOLVE NATIONAL AND GLOBAL CHALLENGES

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Planning for the transition will necessarily need to address the fact that achieving meaningful national results in many policy and program areas requires some combination of coordinated efforts among various actors across federal agencies, often with other governments (for example, internationally and at state and local levels), non-government organizations (NGO), for-profit and not for-profit contractors, and the private sector. In recognition of this fact, recent years have seen the adoption of a range of national plans and strategies to bring together decision makers and stakeholders from different locations, types of organizations, and levels of government. For example, the National Response Plan is intended to be an all-discipline, all-hazards plan that establishes a single, comprehensive framework for managing domestic incidents where involvement is necessary among many levels of government, the private sector, and nonprofit organizations. The response and recovery efforts after 9/11 and natural disasters, the nation’s preparations for a possible influenza pandemic, and the need to address global food insecurity are some of the many public issues that vividly underscore the critical importance of employing broad governance perspectives to meet global and national needs. Our transition work will highlight challenges the new Congress and next administration face in devising integrated solutions to such multidimensional problems. Some examples follow: Care for servicemembers: Over the last several years, more than 30,000 servicemembers have been wounded in action; many with multiple serious injuries such as amputations, traumatic brain injury, and post-traumatic stress disorder. We have identified substantial weaknesses in the health care these wounded warriors are receiving as well as the complex and cumbersome DOD and VA disability systems they must navigate. While improvement efforts have started, addressing the critical continuity of care issues will require sustained attention, systematic oversight by DOD and VA, and sufficient resources. Health care in an increasingly global market and environment: The spread of severe acute respiratory syndrome (SARS) from China in 2002, recent natural disasters, and the persistent threat of an influenza pandemic all highlight the need to plan for a coordinated response to large-scale public health emergencies. Federal agencies must work with one another and with state and local governments, private organizations, and international partners to identify and assess the magnitude of threat, develop effective countermeasures (such as vaccines), and marshal the resources required for an effective public health response. Our transition work on these topics—including work related to such emergencies as SARS, Hurricane Katrina, pandemic influenza, bioterrorism, and TB—will highlight that federal agencies still face challenges such as coordinating response efforts and developing the capacity for a medical surge in mass casualty events. Food safety: The fragmented nature of the federal food oversight system undermines the government’s ability to plan more strategically to inspect food-production processes, Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

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Gene L. Dodaro identify and react more quickly to outbreaks of food-borne illnesses, and focus on promoting the safety and integrity of the nation’s food supply. Fifteen federal agencies collectively administer at least 30 laws related to food safety. We have recommended, among other things, that the executive branch reconvene the President’s Council on Food Safety to facilitate interagency coordination on food safety regulation and programs.

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Surface transportation: The nation’s transportation infrastructure—its aviation, highway, transit, and rail systems—is critical to the nation’s economy and affects the daily lives of most Americans. Despite large increases in federal spending on America’s vital surface transportation system, this investment has not commensurately improved the performance of the system. Growing congestion has created by one estimate a $78 billion annual drain on the economy, and population growth, technological change, and the increased globalization of the economy will further strain the system. We have designated transportation finance a high-risk area and have called for a fundamental reexamination and restructured approach to our surface transportation policies, which experts have suggested need to recognize emerging national and global imperatives, such as reducing the nation’s dependence on foreign fuel sources and minimizing the impact of the transportation system on the global climate change. Disaster response: Hurricane Katrina demonstrated the critical importance of the capability to implement an effective and coordinated response to catastrophes that leverages needed resources from across the nation, including all levels of government as well as nongovernmental entities. While the federal government has made progress since Katrina, as shown in the recent response to Hurricane Gustav, we have reported that the administration still does not have a comprehensive inventory of the nation’s response capabilities or a systematic, comprehensive process to assess capabilities at the local, state, and federal levels based on commonly understood and accepted metrics for measuring those capabilities. We have work under way to identify the actions that DHS and the Federal Emergency Management Agency (FEMA) have taken to implement the provisions of the Post-Katrina Emergency Management Reform Act, which charged FEMA with the responsibility for leading and supporting the nation in a comprehensive risk-based emergency management system—a complex task that requires clear strategic vision, leadership, and the development of effective partnerships among governmental and nongovernmental entities. Cyber critical infrastructures: Cyber critical infrastructures are systems and assets incorporating information technology—such as the electric power grid and chemical plants—that are so vital to the nation that their incapacitation or destruction would have a debilitating impact on national security, our economy, and public health and safety. We have made numerous recommendations aimed at protecting these essential assets and addressing the many challenges that the federal government faces in working with both the private sector and state and local governments to do so— such as improving threat and vulnerability assessments, enhancing cyber analysis and

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warning capabilities, securing key systems, and developing recovery plans. Until these and other areas are effectively addressed, our nation’s cyber critical infrastructure is at risk of the increasing threats posed by terrorists, foreign intelligence services, and others. Also, more broadly, the Government Performance and Results Act of 1993 (GPRA) calls for a governmentwide performance plan to help Congress and the executive branch address critical federal performance and management issues, including redundancy and other inefficiencies. Unfortunately, the promise of this important provision has not been realized. The agency-by-agency focus of the budget does not provide for the needed strategic, longer range, and integrated perspective of government performance. A broader performance plan would provide the President with an opportunity to assess and communicate the relationship between individual agency goals and outcomes that transcend federal agencies.

DOCUMENT TARGETED OPPORTUNITIES TO CONSERVE RESOURCES THAT CAN BE APPLIED TO NEW INITIATIVES

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Our transition work will identify opportunities to limit costs and reduce waste across a broad spectrum of programs and agencies. While these opportunities will not eliminate the need to address more fundamental long-term fiscal challenges the federal government faces, concerted attention by the new administration could conserve resources for other priorities and improve the government’s image. Examples of areas we will highlight and for which we will suggest needed action follow: Improper payments: For fiscal year 2007, agencies reported improper payment estimates of about $55 billion—including programs such as Document Targeted Opportunities to Conserve Resources That Can Be Applied to New Initiatives Medicaid, Food Stamps, Unemployment Insurance, and Medicare. The governmentwide estimate has steadily increased over the past several years; yet even the current estimate does not reflect the full scope of improper payments. Further, major management challenges and internal control weaknesses continue to plague agency operations and programs susceptible to significant improper payments. Addressing these challenges and internal control weaknesses will better ensure the integrity of payments and minimize the waste of taxpayers’ dollars. DOD cost overruns: Total acquisition cost growth on the 95 major defense programs in DOD’s fiscal year 2007 portfolio is now estimated at $295 billion, and of the weapon programs we assessed this year, none had proceeded through development meeting the best practice standards for mature technologies, stable design, and mature production processes—all prerequisites for achieving planned cost and schedule outcomes. DOD expects to invest about $900 billion (fiscal year 2008 dollars) over the next 5 years on development and procurement, with more than $335 billion, or 37 percent, going specifically for new major weapon systems. Yet, much of this investment will be used to address cost overruns rooted in poor planning, execution,

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Gene L. Dodaro and oversight. By adopting best practices on individual programs and strengthening oversight and accountability for better outcomes, as we have consistently recommended, cost and schedule growth could be significantly reduced.

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DOD secondary inventory: DOD expends considerable resources to provide logistics support for military forces, and the availability of spare parts and other critical items provided through DOD’s supply chains affects military readiness and capabilities. DOD officials have estimated that the level of investment in DOD’s supply chains is more than $150 billion a year, and the value of its supply inventories has grown by tens of billions of dollars since fiscal year 2001. However, as we have reported over the years, DOD continues to have substantial amounts of secondary inventory (spare parts) that are in excess to requirements. Most recently, in 2007, we reported that more than half of the Air Force’s secondary inventory, worth an average of $31.4 billion, was not needed to support required inventory levels from fiscal years 2002 through 2005, although increased demand due to ongoing military operations contributed to slight reductions in the percentage of inventory on hand and the number of years of supply it represents. In ongoing reviews of the Navy’s and the Army’s secondary inventory, we are finding that these services also continue to have significant amounts of inventory that exceed current requirements. To reduce its investment in spare parts that are in excess of requirements, DOD will need to strengthen the accountability and management of its secondary inventory. Oil and gas royalties: In fiscal year 2007, the Department of Interior’s Minerals Management Service collected over $9 billion in oil and gas royalties, but our work on the collection of federal royalties has found numerous problems with policies, procedures, and internal controls that raise serious doubts about the accuracy of these collections. We also found that past implementation of royalty relief offered some oil and gas companies during years of low oil and gas prices did not include provisions to remove the royalty relief in the event that oil and gas prices rose as they have, and this failure to include such provisions will likely cost the federal government tens of billions of dollars over the working lives of the affected leases. Finally, we have found that the federal government ranks low among nations in terms of the percentage of total oil and gas revenue accruing to the government. We have ongoing reviews of Interior’s oil- and gas-leasing and royalty policies and procedures and reports based on this work should be publicly released within the next few months. The tax gap: The tax gap—the difference between taxes legally owed and taxes paid on time—is a long-standing problem in spite of many efforts by Congress and the Internal Revenue Service (IRS) to reduce it. Recently, IRS estimated a net tax gap for tax year 2001 of about $290 billion. We have identified the need to take multiple approaches to reduce the tax gap, and specifically have recommended ways for IRS to improve its administration of the tax laws in many areas, including payroll taxes, rental real estate income, the individual retirement account rules, income sent offshore, and collecting tax debts. We also suggested that Congress consider improving tax administration or revising tax policies related to governmental bonds, the tax preparation industry, and accelerated depreciation for Indian reservations.

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Ultimately, long-term fiscal pressures and other emerging forces will test the capacity of the policy process to reexamine and update priorities and portfolios of federal entitlement programs, policies, programs, commitments, and revenue approaches. In that regard, the “base” of government—spending and revenue—also must be reassessed so that emerging needs can be addressed while outdated and unsustainable efforts can be either reformed or eliminated. Tax expenditures should be part of that reassessment. Spending channeled through the tax code results in forgone federal revenue that summed to an estimated $844 billion in 2007 and has approximated the size of total discretionary spending in some years. Yet, little is known about the performance of credits, deductions, and other tax preferences, statutorily defined as tax expenditures, which are often aimed at policy goals similar to those of federal spending programs. Because tax expenditures represent a significant investment of resources, and in some program areas are the main tool used to accomplish federal goals, this is a significant gap in the information available to decision makers.

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UNDERSCORE CRITICAL CAPACITY BUILDING NEEDS IN INDIVIDUAL AGENCIES THAT WILL AFFECT IMPLEMENTATION OF WHATEVER NEW PRIORITIES ARE PURSUED While some progress has been made in recent years, agencies still all too often lack the basic management capabilities needed to address current and emerging demands. As a result, any new administration will face challenges in implementing its policy and program agendas because of shortcomings in agencies’ management capabilities. Accordingly, our transition effort will synthesize our wide range of work and identify the key management challenges unique to individual departments and major agencies. Additionally, our transition work will emphasize five key themes common to virtually every government agency. Select a senior leadership team that has the experience needed to run large, complex organizations: It is vitally important that leadership skills, abilities, and experience be among the key criteria the new President uses to select his leadership teams in the agencies. The Senate’s interest in leveraging its role in confirmation hearings as evidenced by Senator Voinovich’s request to us to suggest management-related confirmation questions and your interest in hearings such as this one will send a strong message that nominees should have the requisite skills to deal effectively with the broad array of complex management challenges they will face. It is also critical that they work effectively with career executives and agency staff. Given that management improvements and transformations can take years to achieve, steps are needed to ensure a continuous focus on those efforts. Agencies need to develop executive succession and transition-planning strategies that seek to sustain commitment as individual leaders depart and new ones arrive. For example, in creating a Chief Management Officer (CMO) position for DHS, Congress has required the DHS CMO to develop a transition and succession plan to guide the transition of management functions with a new administration. More broadly

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Gene L. Dodaro speaking, though, the creation of a chief operating officer (COO)/CMO position in selected federal agencies can help elevate, integrate, and institutionalize responsibility for key management functions and transformation efforts and provide continuity of leadership over a long term. For example, because of its long-standing management weaknesses and high-risk operations, we have long advocated the need for a COO/CMO for DOD to advance management integration and business transformation in the department. In the fiscal year 2008 National Defense Authorization Act, Congress designated the Deputy Secretary of Defense as the department’s CMO.

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Strengthen the capacity to manage contractors and recognize related risks and challenges: Enhancing acquisition and contracting capability will be a critical challenge for many agencies in the next administration in part because many agencies (for example, DOD, DHS, the Department of Energy, and the Centers for Disease Control and Prevention) are increasingly reliant on contractors to carry out their basic operations. In fiscal year 2007, federal agencies spent $436 billion on contracts for products and services. At the same time, our high-risk list areas include acquisition and contract management issues that collectively expose hundreds of billions of taxpayer dollars to potential waste and misuse. To improve acquisition outcomes, we have stated that agencies need a concentrated effort to address existing problems while facilitating a reexamination of the rules and regulations that govern the government-contractor relationship in an increasingly blended workforce. For example, since agencies have turned to contractor support to augment their capabilities, they need to ensure that contractors are playing appropriate roles and that the agencies have retained sufficient in-house workforce capacity to monitor contractor cost, quality, and performance. Better manage information technology (IT) to achieve benefits and control costs: A major challenge for the federal government is managing its massive investment in IT—currently more than $70 billion annually. Our reports have repeatedly shown that agencies and the government as a whole face challenges in prudently managing major modernization efforts, ensuring that executives are accountable for IT investments, instituting key controls to help manage such projects, and ensuring that computer systems and information have adequate security and privacy protections. The Office of Management and Budget (OMB) identifies major projects that are poorly planned by placing them on a Management Watch List and requires agencies to identify high-risk projects that are performing poorly. OMB and federal agencies have identified approximately 413 IT projects—totaling at least $25.2 billion in expenditures for fiscal year 2008—as being poorly planned, poorly performing, or both. OMB has taken steps to improve the identification of the Management Watch List and high-risk projects since GAO testified last September, including publicly disclosing reasons for placement on the Management Watch List and clarifying highrisk project criteria. However, more needs to be done by both OMB and the agencies to address recommendations GAO has previously made to improve the planning, management, and oversight of poorly planned and performing projects so that potentially billions in taxpayer dollars are not wasted.

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Address human capital challenges: Governmentwide, about one-third of federal employees on board at the end of fiscal year 2007 will become eligible to retire on the new administration’s watch. Certain occupations—air traffic controllers and customs and border protection personnel among them—are projected to have particularly high rates of retirement eligibility come 2012. As experienced employees retire, they leave behind critical gaps in leadership and institutional knowledge, which could adversely affect the government’s ability to carry out its diverse responsibilities. Agencies must recruit and retain employees able to create, sustain, and thrive in organizations that are flatter, results-oriented, and externally focused, and who can collaborate with other governmental entities as well as with the private and nonprofit sectors to achieve desired outcomes. The Office of Personnel Management needs to continue to ensure that its own workforce has the skills needed to successfully guide agency human capital improvements and agencies must make appropriate use of available authorities to acquire, develop, motivate, and retain talent.

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Build on the progress of the statutory management framework: Over the last 2 decades, Congress has put in place a legislative framework for federal management that includes results-based management, information technology, and financial management reforms. As a result of this framework and the efforts of Congress and the Bush and Clinton administrations, there has been substantial progress in establishing the basic infrastructure needed to create high-performing organizations across the federal government. However, work still remains and sustained attention by Congress and the incoming administration will be a critical factor in ensuring the continuing and effective implementation of the statutory management reforms.

HELP INFORM THE MANAGEMENT IMPROVEMENT AGENDAS OF CONGRESS AND THE NEW ADMINISTRATION Initiated in 1990, GAO’s high-risk program has brought a much greater focus to areas in need of broad-based transformations and those vulnerable to waste, fraud, abuse, and mismanagement. It also has provided the impetus for the creation of several statutory management reforms. GAO’s current high-risk list covers 28 areas, as shown in the chart below. Our updates to the list, issued every 2 years at the start of each new incoming Congress, have helped in setting congressional oversight agendas. The support of this Subcommittee and others in Congress has been especially important to the success of this program. Further, administrations have consistently turned to the high-risk list in framing their management improvement initiatives. The current administration in particular, working with Congress, has provided a valuable and focused effort in requiring agencies to develop meaningful corrective action plans for each area that we have designated as high-risk. As a consequence of efforts by Congress, the agencies, OMB, and others, much progress has been made in many high-risk areas, but key issues need continuing attention. Sustained efforts in these areas by the next Congress and administration will help improve service to the American public, strengthen

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public confidence in the government’s performance and accountability, potentially save billions of dollars, and ensure the ability of government to deliver on its promises.

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MONITOR THE IMPLEMENTATION OF THE PRESIDENTIAL TRANSITION ACT PROVISIONS AND IDENTIFY POTENTIAL IMPROVEMENTS FOR FUTURE TRANSITIONS The world has obviously changed a great deal since the Presidential Transition Act of 1963. And while there have been periodic amendments to the Act, neither the Act nor the transition process itself has been subject to a comprehensive or systematic assessment of whether the Act is setting transitions up to be as effective as they might be. We will be monitoring the transition and reaching out to the new administration, Congress, and outside experts to identify lessons learned and any needed improvements in the Act’s provisions for future transitions. On a related matter, concerns are always expressed during any transition about the conversion of noncareer political appointees from the existing administration to civil service career appointments. Civil service laws, rules, and regulations, require that all personnel actions, including such conversions, remain free of political influence or other improprieties and meet the nine standards known as “merit system principles.” During a presidential election period, the Office of Personnel Management (OPM) conducts a pre-appointment review of all competitive service appointment actions that involve the appointment or conversion of a Schedule C or Noncareer Senior Executive Service (SES) employee.1 At the request of Congress, we have regularly reported on such conversions for many years. Most recently, we reported in 2006 that for the period of May 2001 through April 2005, 23 of 41 agencies reviewed reported converting 144 individuals from noncareer to career positions, 130 individuals at the GS-12 level or higher. The remaining 18 agencies reported making no conversions. We found that agencies used appropriate authorities and followed procedures in making the majority (93) of the 130 conversions reported at the GS-12 level or higher. It appeared that agencies did not follow proper procedures for 18 conversions, including by creating career positions specifically for particular individuals, posting SES vacancy announcements for less than the minimum time requirement, and failing to apply veteran’s preference; we referred those 18 conversions to the Office of Personnel Management and recommended that the Director determine whether additional actions were needed. For the other 19, agencies did not provide enough information for us to make an assessment. Congress has again turned to us to monitor conversions. Specifically, we have been asked to report for 42 agencies on (1) the number and types of conversions of individuals holding noncareer positions to career positions from May 2005 through May 2009 and (2) whether agencies used appropriate appointment authorities and followed proper procedures consistent with merit systems principles in making the conversions. We expect to provide the requesters with interim information on our findings and issue a final report early in spring 2010.

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GAO High-Risk List as of September 2008

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High-Risk Areas Addressing Challenges In Broad-Based Transformations • Strategic Human Capital Managementa • Managing Federal Real Propertya • Protecting the Federal Government’s Information Systems and the Nation’s Critical Infrastructures • Implementing and Transforming the Department of Homeland Security • Establishing Appropriate And Effective Information-Sharing Mechanisms to Improve Homeland Security • DOD Approach to Business Transformationa • DOD Business Systems Modernization • DOD Personnel Security Clearance Program • DOD Support Infrastructure Management • DOD Financial Management • DOD Supply Chain Management • DOD Weapon Systems Acquisition • FAA Air Traffic Control Modernization • Financing the Nation’s Transportation Systema • Effective Protection of Technologies Critical to U.S. National Security Interestsa • Transforming Federal Oversight of Food Safety a • The 2010 Census (New) Managing Federal Contracting More Effectively • DOD Contract Management • DOE Contract Management • NASA Contract Management • Management of Interagency Contracting Assessing the Efficiency and Effectiveness of Tax Law Administration • Enforcement of Tax Lawsa • IRS Business Systems Modernization Modernizing and Safeguarding Insurance and Benefit Programs • Modernizing Federal Disability Programsa • PBGC Single-Employer Pension Insurance Program • Medicare Programa • Medicaid Programa • National Flood Insurance Programa

Year designated high risk 2001 2003 1997 2003 2005 2005 1995 2005 1997 1995 1990 1990 1995 2007 2007 2007 2008 1992 1990 1990 2005 1990 1995 2003 2003 1990 2003 2006

Source: GAO. a Legislation likely to be necessary to supplement executive branch actions to address this area.

Finally, as you may know, under the Federal Vacancies Reform Act of 1998,2 federal agencies must file reports with the Comptroller General and each House of Congress on Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

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Gene L. Dodaro

certain executive office positions that require Presidential nomination and Senate confirmation. Agencies are required to report (1) the vacancy and the date of the vacancy, (2) the name of any person serving in an acting capacity and the date such service began, (3) the name of any person nominated to the Senate to fill the position and the date of the nomination, and (4) the date of a rejection, withdrawal, or return of a nomination. To meet our responsibilities under the Act, we maintain a database on our Web site (www.gao.gov) of current and past vacant positions, based on the reports submitted by the agencies. The law also requires us to inform relevant congressional committees, the President, and OPM if an acting officer is serving longer than the specified period under the Act (210 days, except following a Presidential inauguration when the period is 300 days). We have issued 12 such letters since 1998. In summary, our goal will continue to be to provide congressional and executive branch policy makers with a comprehensive snapshot of how things are working across government and to emphasize the need to update some federal activities to better align them with 21st century realities and bring about government transformation. In keeping with our role, we will be providing Congress and the executive branch with clear facts and constructive options and suggestions that our elected officials can use to make policy choices in this pivotal transition year. The nation’s new and returning leaders will be able to use such information to help address both the nation’s urgent issues and long-term challenges so that our nation stays strong and secure now and for the next generation. Chairman Towns, Mr. Bilbray, and Members of the Subcommittee, this concludes my prepared statement. I would be happy to respond to any questions you may have.

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RELATED GAO PRODUCTS Oversight of Financial Institutions and Markets Housing Government-Sponsored Enterprises: A Single Regulator Will Better Ensure Safety and Soundness and Mission Achievement (GAO-08-563T, Mar. 6, 2008). Financial Regulation: Industry Trends Continue to Challenge the Federal Regulatory Structure (GAO-08-32, Oct. 12, 2007).

U.S. Efforts in Iraq, Afghanistan, and Pakistan Operation Iraqi Freedom: Actions Needed to Enhance DOD Planning for Reposturing of U.S. Forces from Iraq (GAO-08-930, Sept. 10, 2008). Securing, Stabilizing, and Reconstructing Afghanistan: Key Issues for Congressional Oversight (GAO-07-801SP, May 24, 2007). Securing, Stabilizing and Rebuilding Iraq: Progress Report: Some Gains Made, Updated Strategy Needed (GAO-08-837, June 23, 2008). Combating Terrorism: The United States Lacks Comprehensive Plan to Destroy the Terrorist Threat and Close the Safe Haven in Pakistan's Federally Administered Tribal Areas (GAO-08-622, April 17, 2008).

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Combating Terrorism: Increased Oversight and Accountability Needed over Pakistan Reimbursement Claims for Coalition Support Funds (GAO-08-806, June 24, 2008)

DOD’s Readiness and Capabilities Military Readiness: Impact of Current Operations and Actions Needed to Rebuild Readiness of U.S. Ground Forces (GAO-08-497T, Feb. 14, 2008). Force Structure: Restructuring and Rebuilding the Army Will Cost Billions of Dollars for Equipment but the Total Cost Is Uncertain (GAO-08-669T, Apr. 10, 2008).

Protecting the Homeland Department of Homeland Security: Progress Report on Implementation of Mission and Management Functions (GAO-07-454, Aug. 17, 2007). Department of Homeland Security: Progress Made in Implementation of Management Functions, but More Work Remains (GAO-08-646T, Apr. 9, 2008).

The Decennial Census

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2010 Census: Census Bureau's Decision to Continue with Handheld Computers for Address Canvassing Makes Planning and Testing Critical (GAO-08-936, July 31, 2008). Information Technology: Significant Problems of Critical Automation Program Contribute to Risks Facing 2010 Census (GAO-08-550T, Mar. 5, 2008).

Retirement of the Space Shuttle NASA: Challenges in Completing and Sustaining the International Space Station (GAO08-581T, Apr. 24, 2008). NASA: Ares I and Orion Project Risks and Key Indicators to Measure Progress (GAO08-186T, Apr. 3, 2008).

Long-Term Fiscal Outlook The Nation's Long-Term Fiscal Outlook: April 2008 Update (GAO-08-783R, May 16, 2008). Budget Issues: Accrual Budgeting Useful in Certain Areas but Does Not Provide Sufficient Information for Reporting on Our Nation's Longer-Term Fiscal Challenge (GAO08-206, Dec. 20, 2007). Fiscal Exposures: Improving the Budgetary Focus on Long-Term Costs and Uncertainties (GAO-03-213 (Jan. 24, 2003).

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Long-Term Fiscal Outlook: Long-Term Federal Fiscal Challenge Driven Primarily by Health Care (GAO-08-912T, June 17, 2008).

Wounded Servicemembers DOD and VA: Preliminary Observations on Efforts to Improve Care Management and Disability Evaluations for Servicemembers (GAO-08-514T, Feb. 27, 2008). DOD and VA: Preliminary Observations on Efforts to Improve Health Care and Disability Evaluations for Returning Servicemembers (GAO-07-1256T, Sept. 26, 2007).

Health Care in an Increasingly Global Market and Environment Emergency Preparedness: States are Planning for Medical Surge, but Could Benefit from Shared Guidance for Allocating Scarce Medical Resources (GAO-08-668, June 13, 2008). Influenza Pandemic: Efforts Under Way to Address Constraints on Using Antivirals and Vaccines to Forestall a Pandemic (GAO-08-92, Dec. 21, 2007).

Food Safety

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Federal Oversight of Food Safety: High-Risk Designation Can Bring Needed Attention to Fragmented System (GAO-07-449T, Feb. 8, 2007). Federal Oversight of Food Safety: FDA’s Food Protection Plan Proposes Positive First Steps, but Capacity to Carry Them Out Is Critical (GAO-08-435T, Jan. 29, 2008).

Surface Transportation Surface Transportation Programs: Proposals Highlight Key Issues and Challenges in Restructuring the Programs (GAO-08-843R, July 29, 2008). Surface Transportation: Restructured Federal Approach Needed for More Focused, Performance-Based, and Sustainable Programs (GAO-08-400, Mar. 6, 2008).

Disaster Response Catastrophic Disasters: Enhanced Leadership, Capabilities, and Accountability Controls Will Improve the Effectiveness of the Nation’s Preparedness, Response, and Recovery System (GAO-06-618, Sept. 6, 2006). Emergency Management: Observations on DHS's Preparedness for Catastrophic Disasters (GAO-08-868T, June 11, 2008).

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Cyber Critical Infrastructure Protection Critical Infrastructure Protection: Sector-Specific Plans’ Coverage of Key Cyber Security Elements Varies (GAO-08-113, Oct. 31, 2007). Critical Infrastructure Protection: Multiple Efforts to Secure Control Systems Are Under Way, but Challenges Remain (GAO-07-1036, Sept. 10, 2007).

Improper Payments Improper Payments: Status of Agencies' Efforts to Address Improper Payment and Recovery Auditing Requirements (GAO-08-438T, Jan. 31, 2008). Fiscal Year 2007 U.S. Government Financial Statements: Sustained Improvement in Financial Management Is Crucial to Improving Accountability and Addressing the Long-Term Fiscal Challenges (GAO-08-847T, June 5, 2008).

DOD Cost Overruns

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Defense Acquisitions: Better Weapon Program Outcomes Require Discipline, Accountability, and Fundamental Changes in the Acquisition Environment (GAO-08-782T, June 3, 2008). Defense Acquisitions: Assessments of Selected Weapon Programs. (GAO-08-467SP, Mar. 31, 2008).

DOD Supply Chain Management DOD's High-Risk Areas: Efforts to Improve Supply Chain Can Be Enhanced by Linkage to Outcomes, Progress in Transforming Business Operations, and Reexamination of Logistics Governance and Strategy (GAO-07-1064T, July 10, 2007). Defense Inventory: Opportunities Exist to Save Billions by Reducing Air Force’s Unneeded Spare Parts Inventory (GAO-07-232, Apr. 27, 2007).

Oil and Gas Royalties Oil and Gas Royalties: The Federal System for Collecting Oil and Gas Revenues Needs Comprehensive Reassessment (GAO-08-691, Sept. 3, 2008). Mineral Revenues: Data Management Problems and Reliance on Self-Reported Data for Compliance Efforts Put MMS Royalty Collections at Risk (GAO-08-893R, Sept. 12, 2008).

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The Tax Gap Highlights of the Joint Forum on Tax Compliance: Options for Improvement and Their Budgetary Potential (GAO-08-703SP, June 2008). Tax Compliance: Multiple Approaches Are Needed to Reduce the Tax Gap (GAO-07488T, Feb. 16, 2007).

Tax Expenditures Government Performance and Accountability: Tax Expenditures Represent a Substantial Federal Commitment and Need to Be Reexamined (GAO-05-690, Sept. 23, 2005). Higher Education: Multiple Higher Education Tax Incentives Create Opportunities for Taxpayers to Make Costly Mistakes (GAO-08-717T, May 1, 2008).

Senior Leadership Team Organizational Transformation: Implementing Chief Operating Officer/Chief Management Officer Positions in Federal Agencies (GAO-08-34, Nov. 1, 2007).

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Contract Management Defense Management: DOD Needs to Reexamine Its Extensive Reliance on Contractors and Continue to Improve Management and Oversight (GAO-08-572T, Mar. 11, 2008). Federal Acquisitions and Contracting: Systemic Challenges Need Attention (GAO-071098T, July 17, 2007).

Information Technology Management Information Technology: OMB and Agencies Need to Improve Planning, Management, and Oversight of Projects Totaling Billions of Dollars (GAO-08-1051T, July 31, 2008). Information Security: Progress Reported, but Weaknesses at Federal Agencies Persist (GAO-08-571T, Mar. 12, 2008).

Human Capital Office of Personnel Management: Opportunities Exist to Build on Recent Progress in Internal Human Capital Capacity (GAO-08-11, Oct. 31, 2007). Human Capital: Transforming Federal Recruiting and Hiring Efforts (GAO-08-762T, May 8, 2008).

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High-Risk Series High-Risk Series: An Update (GAO-07-310, Jan. 31, 2007).

Oversight Letter Suggested Areas for Oversight for the 110th Congress (GAO-07-235R, Nov. 17, 2006). This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. However, because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately.

GAO’S MISSION

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The Government Accountability Office, the audit, evaluation, and investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. GAO examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO’s commitment to good government is reflected in its core values of accountability, integrity, and reliability.

End Notes 1

A Schedule C is an appointment of an individual to a position at GS-15 or below that is excepted from competitive appointment procedures because of the appointee’s policy-making role or confidential working relationship with the agency head or top appointed official. A noncareer SES is a noncompetitive appointment to a position above GS-15 serving at the pleasure of the appointing authority and not meeting the conditions for a career or career limited term appointment. 2 5 U.S.C. §§ 3345 - 3349d (2006).

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Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

In: Political Transition Process: Presidential… Editor: Patricia R. Eltona

ISBN: 978-1-60692-834-9 © 2010 Nova Science Publishers, Inc.

Chapter 4

A RESOURCE FOR THE PRESIDENTIAL TRANSITION The United States Office of Government Ethics

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A MESSAGE FROM THE DIRECTOR OF THE UNITED STATES OFFICE OF GOVERNMENT ETHICS In 1800, the Federal Government, consisting of five cabinet departments and roughly 125 Federal employees, made the transition from Philadelphia to Washington, D.C. Beginning in January 2009, the new President will have the opportunity to fill over 1100 executive branch positions with the advice and consent of the Senate. As discussed in this guide, the United States Office of Government Ethics (OGE) plays a vital role in the transition from one Presidential administration to another, in the nomination and confirmation process, and in promoting a strong ethical culture throughout the executive branch. To get the new President’s team on board, the law requires that OGE review the financial interests of all nominees for Senate-confirmed positions for possible conflicts of interest with their prospective duties. We do this in concert with the White House and senior career agency ethics officials who are familiar with their agencies’ missions and activities. Where we identify potential conflicts of interest, we develop remedies so that the President’s appointees can carry out their duties with integrity. Part I of this guide describes the process in more detail. Moreover, Congress established OGE to strengthen public confidence in the Government’s integrity and impartiality. It is imperative that upon assuming office new appointees understand the basic principles of Government ethics. This understanding will enable them to avoid situations that, while acceptable in the private sector, could cause embarrassment to themselves and the administration, and undermine public confidence in the Government. Part II of this guide discusses the most important of these ethical requirements. Finally, in Part III of this guide, we supply names and telephone numbers for key ethics officials at OGE and more than 80 agencies. While there are over 6,000 full- and part-time

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The United States Office of Government Ethics

ethics officials in the Government, these are individuals who know their agencies, have been trained in Government ethics, and are available to advise transition team members and new appointees assigned to their agencies. As the Director of OGE, I am committed to helping make this a smooth transition and to getting the new President’s team on the field quickly. Going forward, OGE will be a valuable resource to the administration and its officials in understanding the ethical principles, laws, and regulations that in many ways are unique to service in the executive branch. We are poised to aid the new administration and its appointees in taking early, active and visible steps, both in word and deed, to establish a strong positive ethical culture from the start.

Hon. Robert I. Cusick Director

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HOW OGE SUPPORTS THE PRESIDENTIAL TRANSITION OGE begins its work by assisting the new administration with a critical component of the confirmation process for Senate-confirmed positions. Working closely with the transition team and the new White House, OGE helps prospective nominees for such positions (PAS nominees) to comply with the extensive financial disclosure requirements of the Ethics in Government Act. OGE also carefully evaluates their financial disclosure reports and prepares ethics agreements to resolve potential conflicts of interest before they enter Government service. We conduct our work as quickly and thoroughly as possible. In the early stages of the new President’s term, OGE can help the leadership team establish a strong foundation for ethics. Traditionally, OGE also has assisted new Presidential administrations by providing initial ethics briefings to their incoming leadership teams. Either before or after the Inauguration, OGE can provide useful instruction on Government ethics to potential appointees to the Executive Office of the President, the President’s cabinet and other senior administration positions. Agency ethics officials also will provide detailed briefings when the Senate confirms their appointments. Thereafter, OGE can continue to provide support and oversight to the decentralized executive branch ethics program throughout the President’s term. OGE will tailor its support to the needs of the new administration.

THE NOMINATION PROCESS & FINANCIAL DISCLOSURE A Brief Overview of Financial Disclosure for PAS Nominees The materials in this section will help transition team members, potential PAS nominees, attorneys, and other advisors to potential PAS nominees. Of course, the financial disclosure

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process is just that – a process. The best advice that transition team members can give potential PAS nominees is to rely on the Federal ethics officials who stand ready to guide them through this process. These officials will help them through the three stages of the process: During the first stage, OGE, agency ethics officials, the White House (or the transition team before the inauguration), and the potential PAS nominee work to ensure compliance with the Ethics in Government Act. Full compliance with the Act’s disclosure requirements often can be a labor-intensive process for potential PAS nominees. During the second stage, OGE, agency ethics officials, and the White House (or the transition team before the inauguration) evaluate the potential PAS nominee’s disclosures for possible conflicts of interest. During the third stage, OGE, agency ethics officials, and the White House (or the transition team before the inauguration) prepare an ethics agreement to resolve potential conflicts of interest. These ethics agreements are individualized but highly uniform throughout the executive branch, as described in OGE’s ethics agreement guide.

Tools for the PAS Nominee Financial Disclosure Process

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The following items are useful tools that OGE has posted on its website to assist individuals who file financial disclosure reports, including PAS nominees. We provide brief summaries and internet addresses for each of these documents. electronic public financial disclosure report (SF 278) Electronic Microsoft Excel version of the SF 278. http://www.dod.mil/dodgc/defense_ethics/resource_library/forms_software.htm “Public Financial Disclosure: A Reviewer’s Reference” Reference manual for reviewers of public financial disclosure reports. http://www.usoge.gov/forms/sf278_pdf/rf278guide_04.pdf “Public Financial Disclosure: A Guide to Reporting Selected Financial Instruments” Supplement to “Public Financial Disclosure: A Reviewer’s Reference” that discusses selected financial instruments. http://www.usoge.gov/forms/sf278_pdf/rf278financialguide_08.pdf frequently asked questions about public financial disclosure Helpful questions and answers regarding the completion of the SF 278. http://www.usoge.gov/forms/sf278_faqs/sf278_faqs.aspx PAS nominee ethics agreement guide Guide on drafting uniform ethics agreements for PAS nominees throughout the executive branch, with sample agreement language and commentary. Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

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The United States Office of Government Ethics http://www.usoge.gov/ethics_docs/misc_docs/ethics_agreement_guide_0208.pdf 5 C.F.R. part 2634 Regulatory requirements for financial disclosure. http://www.usoge.gov/laws_regs/regulations/5cfr2634.aspx 5 U.S.C. app. § 102 Statutory requirements for the contents of public financial disclosure reports. http://www.usoge.gov/laws_regs/pdf/comp_fed_ethics_laws.pdf the qualified trust program Introduction to the program for blind trusts and diversified trusts. http://www.usoge.gov/training/training_materials/booklets/bkQualTrust_07.pdf

the certificate of divestiture program Introduction to a program that permits deferral of certain capital gains incurred as a result of a divestiture to resolve a conflict of interest. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/1999/do99019a.pdf

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Addressing These Issues Will Expedite the Nomination Process The Ethics in Government Act establishes extensive requirements for the financial disclosure reports of PAS nominees. These requirements cannot be summarized briefly, but focusing on a few key items will help potential PAS nominees accomplish financial disclosure, which will speed the nomination process. Excepted Investment Fund (EIF) The concept of an “excepted investment fund” is the most important technical concept that a potential PAS nominee needs to understand. The Ethics in Government Act requires a potential PAS nominee to disclose the holdings of any investment fund unless the investment fund qualifies for an exception to the statutory duty to disclose. The requirements for the “excepted investment fund” exception, as provided in 5 C.F.R. § 2634.31 0(c), are as follows: An excepted investment fund is an investment fund that is... independently managed, “widely held,” and either “publicly traded or available” or “widely diversified” A working knowledge of this definition will greatly simplify the disclosure process. Suggestions to give potential nominees When working with potential PAS nominees, you can help them by offering a number of suggestions that will move their financial disclosure reports through the process as quickly as possible: Suggest that they gather all of their financial documents before beginning to complete the SF 278. Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

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Explain that they do not need to complete Schedule B. Ask them to report assets in a way that a reader can easily recognize the assets from the information provided. (Providing ticker symbols is not necessary but is helpful and expedites the process significantly.) Help them to understand the definition of “excepted investment fund” (EIF). Explain the reporting periods for the different schedules carefully. Ask them to be prepared to finalize any pending separation agreements with employers in the immediate future. If the terms of any such agreements are not finalized, they also may benefit from seeking advice on Government ethics rules before finalizing the agreements. Ask them to identify any cash account as a “cash account” in the SF 278. Suggest that they use the Excel spreadsheet version of the SF 278 at: http://www.dod.mil/dodgc/de fense_ethics/resource_library/forms_software.htm. Provide them with the link to the SF 278 Frequently Asked Questions section on OG E ’s website: http://www.usoge.gov/forms/sf278_faqs/sf278_faqs.aspx. Feel free to give them telephone numbers of OGE contacts.

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Disclosure issues to address When working with potential PAS nominees, you can help them by ensuring that they address the following issues that someone unfamiliar with the disclosure requirements may encounter when completing an SF 278: Have they reported assets by the wrong names? Have they provided incomplete names for mutual funds? Have they neglected to report their spouses’ assets and income? Have they neglected to disclose equity interests in their employers (or equity interests in their spouses’ employers)? Have they disclosed detailed information about deferred compensation plans? Have they disclosed the holdings of defined contribution plans? Have they disclosed the holdings of non-EIF investment funds? Have they mistakenly identified “managed accounts” as EIFs? (Note: Managed accounts are not excepted investment funds.) Have they neglected to disclose their clients on Schedule D, Part II? (Note: For example, an attorney must identify any client who paid the law firm more than the threshold amount for the attorney’s services.) Have they provided sufficient information about private securities (e.g., stocks issued privately by a corporation that is not publicly traded)? Have they disclosed all reportable outside positions on Schedule D, Part I? Have they provided sufficient information about stock option grants? Are they aware of the different reporting periods that apply to Schedule A, Schedule C and Schedule D? Have they mistakenly completed Schedule B? Are they aware that some information must be reported on more than one schedule? Have they disclosed all whole, universal, and variable life insurance policies? Have they disclosed all holdings of variable life insurance policies? Have they mistakenly identified speakers bureaus as sources of income, when they must report the actual sources of income (i.e., the paying client)?

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The United States Office of Government Ethics Have they disclosed the names of books for which they received royalties during the reporting period? Have they neglected to indicate which portfolios they have selected through 529 plans? For potential PAS nominees who are beneficiaries of trusts, have they neglected to report the holdings of the trusts? For potential PAS nominees whose spouses or dependent children are beneficiaries of trusts, have they neglected to report the holdings of the trusts? Have they neglected to report positions they hold as trustees? Have they mistakenly submitted brokerage statements, rather than reporting assets on the SF 278? Have they provided unnecessary personal information, such as: home addresses, street addresses for other residential or rental properties, personal telephone numbers, names of spouses and children, bank account numbers? (Note: Potential PAS nominees should not disclose this type of personal information on the SF 278 because the SF 278 is a publicly available report.)

These items are not an exhaustive compilation of issues that OGE addresses when reviewing financial disclosure reports, but focusing on these items will help potential PAS nominees to complete the process as quickly as possible.

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Ethics agreements After fully complying with the disclosure requirements of the Ethics in Government Act, potential PAS nominees execute ethics agreements. Drafting ethics agreements involves OGE, agency ethics officials, the potential PAS nominee, and the White House (or the transition team before the Inauguration). When working to prepare an ethics agreement, you may find it helpful to advise a potential PAS nominee of the following: OGE’s ethics agreement guide has expedited the process and increased uniformity across the executive branch. Potential PAS nominees need to be certain that they fully understand the commitments in their ethics agreements. Potential PAS nominees need to be certain that their commitments are feasible, particularly with regard to winding down businesses or separating from privatesector employers. Potential PAS nominees need to be certain that their ethics agreements are accurate.

Selected Memoranda Related to Financial Disclosure OGE issues memoranda containing guidance relevant to the financial disclosure process. Access to these memoranda may be helpful to transition team members, attorneys and others who advise Presidential appointees and potential nominees for Presidential appointments. We provide brief summaries and internet addresses for each of these documents. review and clearance of PAS nominee forms (DO-06-004) Discusses the review of financial disclosure reports of Presidential nominees requiring Senate confirmation.

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http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2006/do06004.pdf seeking additional information from nominee filers (DO-08-002) Discusses the need to seek additional information from a PAS nominee when a financial disclosure report is incomplete. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2008/do08002.pdf financial disclosure requirements for pooled investment funds (DO-08-22) Explains disclosure and possible divestiture requirements for certain funds. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2008/do08022.pdf financial disclosure for trustees, executors or administrators (DO-02-008) Provides guidance on reporting trusts and estates when an employee is serving as a trustee, executor or administrator. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2002/do02008.pdf effective screening arrangements (DO-04-012) Discusses effective screening arrangements for recusal obligations. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2004/do04012.pdf http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2004/do04012a.pdf

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public financial disclosure reports and certificates of divestiture (DO-98-019) Discusses timelines for submitting and processing PAS nominee financial disclosure reports and conditions for issuing Certificates of Divestiture. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/1998/DO98019.aspx disclosing privileged relationships (DO-06-011) Clarifies the scope of the nondisclosure exception for compensation from a client with whom the filer is in a privileged relationship. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2006/do06011.pdf

ETHICS OVERVIEW 14 Ethical Principle The Foundation for Executive Branch Ethics Rests on the Fourteen Ethical Principles Established in 5 C.F.R. § 2635.101(b) Public service is a public trust, requiring employees to place loyalty to the Constitution, the laws and ethical principles above private gain. Employees shall not hold financial interests that conflict with the conscientious performance of duty. Employees shall not engage in financial transactions using nonpublic Government information or allow the improper use of such information to further any private interest.

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The United States Office of Government Ethics

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An employee shall not, except as permitted by subpart B of this part, solicit or accept any gift or other item of monetary value from any person or entity seeking official action from, doing business with, or conducting activities regulated by the employee’s agency, or whose interests may be substantially affected by the performance or nonperformance of the employee’s duties. Employees shall put forth honest effort in the performance of their duties. Employees shall not knowingly make unauthorized commitments or promises of any kind purporting to bind the Government. Employees shall not use public office for private gain. Employees shall act impartially and not give preferential treatment to any private organization or individual. Employees shall protect and conserve Federal property and shall not use it for other than authorized activities. Employees shall not engage in outside employment or activities, including seeking or negotiating for employment, that conflict with official Government duties and responsibilities. Employees shall disclose waste, fraud, abuse, and corruption to appropriate authorities. Employees shall satisfy in good faith their obligations as citizens, including all just financial obligations, especially those –such as Federal, State, or local taxes-- that are imposed by law. Employees shall adhere to all laws and regulations that provide equal opportunity for all Americans regardless of race, color, religion, sex, national origin, age, or handicap. Employees shall endeavor to avoid any actions creating the appearance that they are violating the law or the ethical standards set forth in this part. Whether particular circumstances create an appearance that the law or these standards have been violated shall be determined from the perspective of a reasonable person with knowledge of the relevant facts.

Looking at the Ethics Program A Vision For Sustainable Ethical Leadership Throughout the Executive Branch The following document is a compilation of OGE’s recommendations to senior Government leaders for sustaining ethics as a core value throughout their executive branch departments and agencies. These recommendations draw on the extensive practical experiences of a branchwide professional ethics community of over 6,000 full- and part-time career ethics officials, and they will help the Government adhere always to the highest ethical standards.

Leadership Initiative Concrete Actions OGE worked with several agencies to identify concrete actions that agency leaders may institute to promote an ethical culture and to support an agency’s ethics program. In identifying the concrete actions several sources were consulted, including: OGE ethics program reviews, OGE’s Ethics Program Review Guidelines, meetings between the Director

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of OGE and leadership from other agencies, an OGE Leadership Study, OGE surveys, and research by nongovernmental organizations. A particularly valuable contribution was made by a focus group consisting of agency ethics officials. Agencies seeking to enhance leadership support of the ethics program should consider the following concrete actions. Not all of the actions are suited to every agency. Implementation and maintenance of an effective ethics program requires careful, ongoing assessment of the program and the development of agency-specific strategies. Also, while many of these concrete actions are directed to agency heads, OGE recognizes that there are many levels of leadership; it is important that all levels of leadership work to achieve the goals of the Leadership Initiative.

Agency Leadership Can…

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Demonstrate Commitment to and Support of the Ethics Program by meeting with OGE leadership to discuss the Leadership Initiative meeting with OGE leadership in connection with OGE’s onsite ethics program reviews meeting with the OGE review team during the course of the agency’s onsite ethics program review addressing agency ethics officials periodically at official functions signing written ethics-related guidance or instructions prepared by agency ethics officials Communicate the Importance of Ethics by participating personally in the selection of the DAEO underscoring the importance of the DAEO position by designating it at an SES level, and publicizing the designation and role throughout the agency meeting one-on-one with key staff to discuss the importance of integrating ethics into everyday agency work including ethics officials in senior staff meetings or other meetings attended by PAS employees, and inviting discussion of pertinent ethics issues enhancing the visibility of the ethics office by ensuring it is clearly reflected in the organizational chart of the agency highlighting the relevance of the ethics program agency-wide via speeches, e-mail, newsletters, memoranda and other effective means emphasizing the importance of ethics requirements, such as filing financial disclosure forms and attending ethics training, via speeches, e-mail, newsletters, memoranda, and other effective means disseminating information on pertinent ethics issues agency-wide by writing ethicsrelated articles for agency newsletters or other publications awarding the achievements of ethics officials in areas including the timeliness, scope and content of training, as well as the administration of the financial disclosure filing systems publicizing agency-wide any awards or commendations received by the ethics office, including OGE awards

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Promote Awareness of Conduct that Demonstrates Commitment to an Ethical Culture, as well as Underscore the Consequences of Unethical Behavior by sharing illustrative stories that demonstrate commitment to ethical values highlighting ethical vulnerabilities specific to the agency that employees may face posting possible penalties for violating the ethics laws and regulations in public areas such as the agency’s Intranet presenting news media accounts illustrating the pitfalls of neglecting ethical considerations Promote Awareness of the Ethics Training Program By Having Ethics Officials Brief Senior Staff on Important Ethics Training Program Measurement Outcomes Including the effectiveness of ethics training based on the results of training evaluations the percentage of employees who completed training the timeliness of training employees on emerging ethics issues

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Demonstrate the Emphasis Placed on Ethics Training by including in the agency’s performance plan the development of specific ethics training projects such as videos, online training, pamphlets, and job aids making a personal appearance at one or more ethics training session participating in an ethics training session alongside employees authoring a statement or speaking in a video segment to be used in ethics training sessions announcing new training initiatives undertaken by ethics program officials and encouraging employee participation Demonstrate the Emphasis Placed on an Ethical Culture by including a welcome letter underscoring the importance of ethical culture in orientation materials for new employees making managers and supervisors accountable for the actions of staff who fail to fulfill their ethics requirements delaying or precluding promotions and awards for failing to timely file financial disclosure reports or participate in training Demonstrate Personal Ethical Behavior by participating in Office of Government Ethics conferences and working groups, or other ethics community events discussing ethical behavior and ethical decision-making with senior staff and employees on a routine basis consistently seeking ethics advice and counseling before participating in a particular matter that may involve a conflict of interest modeling a, “Should I do it?” versus, “Can I do it?” mentality

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Promote the Ethical Merit of Leadership Actions by Emphasizing the Themes of Transparency and Accountability Throughout the Agency by explaining to employees, and when appropriate the public, how specific agency determinations were made publicizing the completion of leadership’s own ethics requirements, such as timely filing, prompt divestiture of financial interests when directed, creation of recusal screening arrangements, and attendance at ethics training publicizing the outcome of ethics program reviews, describing what actions the agency plans to take to correct any deficiencies or to otherwise improve the program Demonstrate Vision by considering the advantages and disadvantages to the agency of appointing a career versus a non-career employee to the DAEO position making a deliberate decision regarding the roles of career and non- career ethics officials in the reporting structure of the agency emphasizing the need for close cooperation and coordination between career and noncareer employees of the agency establishing stated qualifications for the position of ethics official that ensure employees in the position have the ability to create and maintain a successful program participating in meetings with officials from other similarly situated agencies to discuss common issues and share model practices to enhance the ethics program seeking opportunities to raise the level of discourse relating to ethical issues by initiating outreach efforts to other agencies, other branches of Government, the private sector, and non-governmental organizations incorporating ethics elements in the agency emergency preparedness plan designating an ethics official to serve as a member of the agency emergency response team consulting with ethics officials prior to implementing new agency programs, policies, or procedures to determine if there are potential ethical implications incorporating ethics into the formal objectives of the agency, for example, into the goals of the strategic plan identifying the necessary resources for an effective ethics program and allocating them accordingly ensuring the ethics office is adequately staffed to achieve success implementing training programs for non-career employees, contractors, and other appropriate groups fostering a cooperative relationship between the ethics office and other relevant offices such as human resources and information technology Promote an Ethical Culture of Transparency, Efficiency, and Accountability by soliciting employees’ ideas on how to maximize involvement in ethics including ethics responsibilities as a critical element in performance plans and formal appraisals for agency ethics officials, managers, and supervisors

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The United States Office of Government Ethics including meeting ethics requirements as a critical element in performance plans and formal appraisals of other appropriate employees encouraging participation in Office of Government Ethics or other ethics community events recognizing the value and expertise of the ethics staff in official statements and agencywide communications

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Emphasize the Importance of Follow-Up and Accountability by reviewing final OIG or other investigative office reports following investigations of cases of possible violations of the conflict of interest laws and the standards of conduct demonstrating to employees that appropriate administrative action is taken in the cases of violations of the conflict of interest laws and the standards of conduct demonstrating to employees that appropriate administrative action, such as delaying promotions, is taken in cases of delinquent financial disclosure filing encouraging the full cooperation of agency employees with all investigations, audits, or reviews establishing a mechanism or process to bring pertinent enforcement-related issues to the attention of agency leadership highlighting the avenues that are available for employees seeking ethics advice emphasizing to employees the importance of reporting observed misconduct ensuring employees are cognizant of the appropriate channels for reporting observed misconduct promoting awareness of protection available to employees who report observed misconduct identifying time periods and circumstances in which misconduct is especially likely to occur and working proactively to minimize the risk assessing the effectiveness of controls the agency has in place for identifying and reducing misconduct

Standards of Ethical Conduct, Criminal Provisions, and other Authorities The following three tables will familiarize transition team members with many of the basic ethics rules covering the Federal executive branch. The transition team also may find it useful to share these tables with potential nominees for Presidential appointments. These tables will sensitize Presidential appointees to the most common ethical issues that executive branch employees encounter. Of course, the best advice for transition team members to give potential Presidential nominees is that they should consult their agency ethics officials whenever situations potentially implicate the ethics rules.

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A Resource for The Presidential Transition Standards of Ethical Conduct for Employees of the Executive Branch 5 C.F.R. Part 2635 Subpart Subpart A – General Provisions Subpart B – Gifts From Outside Sources Subpart C – Gifts Between Employees Subpart D – Conflicting Financial Interests Subpart E – Impartiality in Performing Official Duties Subpart F – Seeking Other Employment Subpart G – Misuse of Position

Rules requiring employees to take specific measures to guard against the appearance of losing impartiality. Rules requiring employees to disqualify from particular matters affecting the financial interests of potential employers with whom they are seeking employment. Rules against the use of an employee’s title, time, or authority and against the use of Government information and resources for private purposes. Rules limiting outside activities, including outside employment, teaching, speaking, and writing. Rules addressing personal financial obligations of employees.

Subpart H – Outside Activities

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Brief Summary Explanations of the basic obligations of public service and the respon-sibility to safeguard the public’s trust. Rules against accepting gifts offered from certain sources or for certain reasons. Exceptions for accepting appropriate items in specified cases. Rules against soliciting or coercing gifts. Rules limiting the circumstances in which employees may give one another gifts, especially gifts to higher- ranking employees. Rules against soliciting contributions for certain gifts. Rules barring employees from participating in particular matters in which they have financial interests. Rules against acquiring or continuing to hold certain financial interests.

Selected Criminal Conflict of Interest Provisions Statute 18 U.S.C. § 201 Bribery and Gratuities 18 U.S.C. § 203 Represen-tation of Others for Compensation 18 U.S.C. § 205 Represen-tation of Others With or Without Compe-nsation 18 U.S.C. § 207 Postemployment Restrictions

Brief Summary Prohibits public officials from accepting bribes or gratuities to influence their Government actions. Prohibits compensation for representational activities involveing certain matters in which the United States is a party or has a direct and substantial interest. Significantly, the prohibition applies to compe-nsation in exchange for the repressentational activities of either the employee or another individual. Prohibits an employee from certain involvement in a claim against the United States or representing another before the Government in matters in which the United States is a party or has a direct and substantial interest. Imposes restrictions on an employee’s activities after leaving the Government. Most restrictions are limited to communications with or appearances before the Government on behalf of another, but some restrictions cover behind-the-scenes activities.

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Selected Criminal Conflict of Interest Provisions (Continued) Statute 18 U.S.C. § 208 Conflicting Financial Interests 18 U.S.C. § 209 Supple-mentation of Salary

Brief Summary Prohibits employees from participating in certain Government matters affecting their own financial interests or the interests of certain persons with whom they have ties outside the Government. Prohibits employees from being paid by someone other than the United States for performing their official Government duties.

Other Selected Ethics Authorities Applicable to Senate-Confirmed Presidential Appointees Legal Authority Executive Order 12731, § 102 18 U.S.C. § 202 5 U.S.C. app. § 101 5 U.S.C. app. § 102 5 U.S.C. app. § 103 5 U.S.C. app. § 104

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5 U.S.C. app. § 502(a)(2) 26 U.S.C. § 1043 5 C.F.R. §§ 2640.201 .205 5 C.F.R. part 2641

Brief Summary Prohibits certain appointees from earning any outside income during Government service. Provides definitions for terms used in criminal conflict of interest statutes, including the term “special Government employee.” Establishes who must file public financial disclosure reports. Establishes requirements for the contents of public financial disclosure reports. Establishes procedures for filing public financial disclosure reports. Addresses the failure to file or the filing of false public financial disclosure reports. Prohibits the use of a PAS appointee’s name in the name of an entity that provides professional services involving fiduciary relationships. Authorizes deferral of capital gains in certain circumstances by employees who must divest assets to resolve conflicts of interest. Establishes exemptions from the criminal conflicts of interest prohibition of 18 U.S.C. 208(a)(1). Implements the post-employment restrictions of 18 U.S.C. § 207.

Please remember that OGE is available to conduct initial ethics briefings for transition team members and the new administration’s senior leadership. Ethics officials throughout the executive branch also will conduct such briefings. ...the best advice for transition team members to give new Presidential appointees is that they should consult their agency ethics officials whenever situations potentially implicate the ethics rules.

Selected Memoranda Related to Conflicts of Interests OGE and the Office of Legal Counsel (OLC) within the U.S. Department of Justice separately issue memoranda containing guidance on the conflict of interest laws and other ethics authorities. Access to these memoranda may be helpful to transition team members,

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attorneys and others who advise Presidential appointees and potential nominees for Presidential appointments. We provide brief summaries and internet addresses for each of these documents. Presidential transition (DO-00-048) Discusses ethical issues arising during the transition. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2000/do00048.aspx rules covering Presidential nominees employed as “advisors” or “counselors” pending confirmation (DO-01-009) Discusses ethical requirements applicable to potential PAS appointees who serve as agency advisors pending Senate confirmation. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2001/do01009.pdf timing of coverage of criminal conflicts statutes (DO-02-014) Discusses a question of timing as to when an individual entering the Government becomes subject to criminal conflict of interest laws. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2002/do02014.pdf trustees of private trusts and criminal conflicts (DO-01-029) Discusses whether a trustee of a private trust has a financial interest in a particular matter under 18 U.S.C. § 208. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2001/do01029.pdf

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discretionary trusts (DO-08-024) Discusses conflicts and disclosure issues related to discretionary http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2008/do08024.pdf

trusts.

defined benefit pension plans and the criminal conflicts (DO-99-015) Discusses potential conflicts arising from defined benefit pension plans. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/1999/do99015.pdf granting waivers to criminal conflicts of interest prohibitions (DO-07-006) Provides guidance on factors to consider when issuing waivers under 18 U.S.C. § 208(b)(1) and 18 U.S.C. § 208(b)(3). http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2007/do07006.pdf criminal prohibition against supplementation of Government salary (DO-02-016) Summarizes 18 U.S.C. § 209, which prohibits supplementation of a Government employee’s salary by outside sources. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2002/do02016.pdf http://www.usoge.gov/laws_regs/other_ethics_guidance/othr_gdnc/og_sum209_02.pdf awards and outside consulting activities (DO-04-011)

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The United States Office of Government Ethics Discusses awards and consulting activities outside the Government. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2004/do04011.pdf http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2004/do04011a.pdf book deals involving Government employees (DO-08-006) Explains rules applicable to employees with agreements to publish books. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2008/do08006.pdf http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2008/do08006a.pdf http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2008/do08006b.pdf ethics and working with contractors (DO-06-023) Discusses rules for employees whose work affects contractors. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2006/do06023.pdf http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2006/do06023a.pdf

summary of rules for “special Government employees” (DO-00-003) Provides a comprehensive summary of the ethical requirements applicable to “special Government employees.” http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2000/DO00003.aspx http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2000/do00003a.pdf

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“diversified” and “sector” mutual funds and criminal conflicts (DO-00-030) Explains the distinction between “diversified” and “sector” mutual funds for purposes of regulatory exemptions to 18 U.S.C. § 208 at 5 C.F.R. part 2640. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2000/do00030.pdf contingency fees and 18 U.S.C. § 203 (DO-99-042) Discusses the implications of 18 U.S.C. § 203 for a prospective Government employee, such as an attorney, who has an interest in a pending contingency fee case. http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/1999/DO99042.aspx former Government employees representing Presidential candidates (DO-08-011) Discusses the scope of an exception to the post-employment restrictions for a former senior or very senior employee who represents a candidate or the President-elect, under 18 U.S.C. § 207(j). http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2008/do08011.pdf

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Chapter 5

PRESIDENTIAL TRANSITION GUIDE TO FEDERAL HUMAN RESOURCES MANAGEMENT United States Office of Personnel Management I. STANDARDS OF ETHICAL CONDUCT This section provides guidance on contacts with lobbyists, seeking work outside the Federal Government, post-employment restrictions, and the protection of Federal records from unauthorized removal.

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Overview All executive branch employees are subject to the Standards of Ethical Conduct for Employees of the Executive Branch, 5 CFR part 2635. The standards include 14 basic principles of ethical conduct and provide uniform rules about gifts from outside sources, gifts between employees, conflicting financial interests, impartiality in performing official duties, seeking other employment, misuse of position, and outside activities. Some employees also are subject to supplemental regulations promulgated by their agencies. Each agency head is responsible for administering that agency’s ethics program and for appointing a Designated Agency Ethics Official (DAEO) and an Alternate DAEO who, along with their supporting ethics officials, administer the agency’s ethics program. The agency’s ethics program office is generally responsible for the following: Providing counseling and advisory services; Providing ethics education and training programs; Reviewing financial disclosure reports; Monitoring administrative actions and sanctions for ethics violations; and Communicating with the U.S. Office of Government Ethics (OGE).

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The OGE provides overall policy leadership for executive branch departments and agencies. OGE reviews public financial disclosure reports of executive branch Presidential appointees requiring Senate confirmation and certain White House officials to determine whether any entries on the forms may give rise to potential or actual violations of applicable laws or regulations and to recommend any appropriate corrective action. OGE also provides advice on other ethics matters for new Presidential appointees, Senior Executive Service (SES) appointees, and Schedule C employees. Schedule C employees are those who are excepted from the competitive service because they have policy-determining responsibilities or are required to serve in a confidential relationship to a key official.

Transition Issues

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Lobbying Disclosure The Lobbying Disclosure Act, Public Law 104-65 [2 U.S.C. 1601 et seq.], imposes disclosure and registration requirements on lobbyists who contact covered legislative and executive branch officials. It also requires that a “covered executive branch official” who is contacted by a lobbyist disclose the fact that he or she is a covered executive branch official upon the request of the person making the lobbying contact. “Covered executive branch officials” are: A. The President; B. The Vice President; C. Any officer or employee, or any other individual functioning in the capacity of such an officer or employee, in the Executive Office of the President; D. Any officer or employee serving in a position in level I, II, III, IV, or V of the Executive Schedule, as designated by statute or Executive order; E. Any member of the uniformed services whose pay grade is at or above O-7 under 37 U.S.C. 201; and F. Any individual serving in a position of a confidential, policy-determining, policymaking, or policy-advocating character described in 5 U.S.C. 751 1(b)(2)(B). Generally, the Act applies to Presidential appointees requiring Senate confirmation (PAS) and Schedule C employees, but does not apply to members of the SES (unless they meet the criteria in C or D, above). If you have any questions about who is considered a lobbyist, how you should respond to contacts from lobbyists, and what your responsibilities are under the Act, you should contact your agency’s General Counsel.

Federal Employees Seeking Non-Federal Employment Pursuant to 18 U.S.C. 208, executive branch employees are generally prohibited from performing work in their Government jobs on matters that would affect the financial interest of someone with whom they are negotiating for employment. The Standards of Ethical Conduct for Executive Branch Employees [5 CFR part 2635] have

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a similar rule that applies even before back-and-forth negotiations begin, and may apply even when an employee has only sent a resumé to a prospective employer. Participation in some procurement matters can subject employees to additional requirements relating to private employment contracts. Employees should also be careful not to misuse Government resources (such as official time, the services of other employees, equipment, supplies, or restricted information) in connection with job-seeking. After an employee has accepted a job outside the Government, he or she must continue to refrain from working on matters in his or her Government job that would affect the financial interest of the future employer. If an agency offers outplacement services to all its employees, departing noncareer employees may use these services. However, an agency may not establish outplacement services for noncareer employees only. [See Appendix A, Question 6, for additional information.]

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Post-Employment Restrictions There are certain restrictions on employees after their separation from Government service. Generally, these restrictions apply to representational activities, and their application varies depending on the employee’s duties and level of authority [18 U.S.C. 207]. A summary of these restrictions may be accessed at the Office of Government Ethics website (www.usoge.gov) in DAEOgram DO-07-04, Reissuance of Postemployment Summary (November 15, 2007), and the pamphlets Rules for the Road and Understanding the Revolving Door, issued November 17, 2007. Agency ethics officials are also available to provide more specific advice on post- employment restrictions before and after Government service. Protecting Federal Records from Unauthorized Removal National Archives and Records Administration (NARA) guidance reminds heads of Federal agencies that official records must remain in the custody of the agency. Federal officials should be aware that there are criminal penalties for the unlawful removal or destruction of Federal records [18 U.S.C. 2071] and the unlawful disclosure of national security information [18 U.S.C. 793, 794, and 798]. Departing Federal officials should contact their agency records officer if they have questions about maintaining and disposing records and extra copies of records. Agency records officers should have copies of Documenting Your Public Service and Agency Recordkeeping Requirements, two NARA publications that address records creation and maintenance procedures and distinguishing between records and personal documentary materials. These publications are available on the NARA website at http://www.archives.gov/ records-mgmt/policy/documenting-your-public-service.html and at http://www.archives.gov/ records-mgmt/publications/agency-recordkeepingrequirements.html, respectively. NARA records management regulations address the identification and protection of Federal records and are also accessible on the NARA website at http://www.archives.gov/about/regulations/ subchapter/b.html [36 CFR Chapter XII, Subchapter B].

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II. POSITIONS AND INDIVIDUALS SUBJECT TO CHANGE IN A TRANSITION This section provides an overview on positions subject to change, assigning Federal employees to a transition team, providing continuity in key operations through overlapping assignments, and separating political appointees. In a March 17, 2008, Memorandum to Heads of Departments and Agencies, the Director of OPM asked agencies to review all personnel actions to make sure they meet the civil service laws, rules, and regulations and are free of impropriety. The Director reminded agencies that OPM and agencies are obligated to ensure all personnel actions conform fully to the spirit and the letter of the merit system principles and do not involve prohibited personnel practices. [See Appendix B for a copy of this memorandum].

Overview

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Positions that are generally subject to change during transitions are listed in a document called United States Government Policy and Supporting Positions which is commonly known as the Plum Book. OPM prepares this document every four years at the request of Congress. It is published after the election in November and is available on OPM’s website (www.opm.gov). There are four broad categories of individuals or positions that may be changed during a transition: Presidential appointments made with the advice and consent of the Senate (PAS) to positions in which the incumbent serves at the pleasure of the President; Other Presidential appointments (PA) to positions in which the incumbent serves at the pleasure of the President; Noncareer Senior Executive Service (SES) appointments; and Appointments to other positions in which the incumbent serves at the pleasure of the agency head. These positions, commonly known as “Schedule C” positions, are excepted by OPM based on their responsibility for determining or advocating agency policy, or their confidential character. Positions in these four categories normally include Cabinet Officers and heads of other executive branch agencies; Under Secretaries; Assistant Secretaries; Directors of Bureaus and Services; and Chairpersons and Members of Boards, Commissions, and Committees. Incumbents of these positions customarily resign at the request of the new incoming administration or before a new agency head takes office. It also is common for an incoming administration to ask certain persons to remain in their jobs during the transition to ensure needed continuity during the initial period of staffing.

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Transition Issues Details to the Transition Team The Presidential Transition Act of 1963, as amended, establishes the transition team as a Federal entity to provide for the orderly transfer of power between administrations [3 U.S.C. 102 note]. In addition to providing that the transition team may hire its own staff, the Act provides for the detail of Federal employees to the transition team after the November election as follows: Any employee of any agency of any branch of the Government may be detailed to the office staff of either the President-elect or the Vice President-elect. The employee must be detailed on a reimbursable basis, and the detail must be with the consent of the lending agency head.

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Overlapping in Key Positions Agencies cannot employ two individuals in the same position at the same time (“dual incumbency”). However, to provide continuity in key positions and meet other transition needs, agencies can use the following options: When an incumbent’s intention to leave has been documented, an agency may establish a different position to employ a designated successor for a brief period pending the incumbent’s departure. For example, when an office director is leaving, the agency may establish a temporary special assistant position for a short period to facilitate orientation of the incoming director to the office’s operations. OPM may authorize the use of SES limited appointment authorities for short periods of time for temporary executive positions. Agencies may also establish temporary transitional Schedule C positions for similar nonexecutive positions to help with transitions.

Involuntary Separations and Resignations Presidential Appointees and Immediate Staff. When the President accepts the resignation of a Presidentially-appointed policy-making officer, the separation is involuntary. A separation is involuntary at any time the resignation is submitted and accepted, whether or not it is related to a change in Presidential administrations. Further, when it is known that a Presidential appointee is leaving, the resignation of a noncareer SES or Schedule C employee who works for that Presidential appointee is involuntary. Agencies should include documentation with a retirement application that the President has accepted the resignation of his appointee, or that the Presidential appointee for whom a noncareer SES or Schedule C appointee works is leaving. Requested Resignations. When an agency separates an employee who submits his or her resignation in response to a request from a recognized representative of the new Presidential term, that separation is involuntary for retirement purposes. The representative must have the authority to request the employee’s resignation, and the resignation must be requested specifically from that employee. The agency should attach a copy of the request for the

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resignation with the individual’s retirement application. Unsolicited resignations, i.e., those based on an anticipated request for a resignation and those prompted by personal choice, are voluntary for retirement purposes. Caution about Separations. When an agency separates an employee, Constitutional requirements oblige the agency to provide a hearing if the employee’s moral character is implicated by the reasons given for dismissal. These rights arise only when disreputable reasons for dismissal are recorded in any document that might be disseminated to others either inside or outside Government. For this reason, notices of separation should avoid a tone that implicates the employee’s reputation. [See Appendix C for a sample separation notice.]

III. APPOINTMENTS This section provides a discussion of Presidential appointments, Senior Executive Service appointments, and appointments in the excepted service.

Presidential Appointments

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Overview Officers and employees who serve at the pleasure of the President or other appointing official may be asked to resign or may be dismissed at any time. They are not covered by standard civil service removal procedures and generally have no right to appeal terminations, unless they are alleging that such action was taken for prohibited discriminatory reasons. Agencies should consult their own General Counsel or OPM’s General Counsel for assistance in this area. In certain cases, the statute creating a position provides that an individual appointed by the President may be removed only for cause or at the end of a statutory term of appointment. These provisions are found most commonly in statutes establishing quasi-judicial entities or regulatory agencies. Individuals in positions with statutory terms can continue in those positions until the end of the term, unless they resign for personal reasons or are removed for cause. The issue is discussed in such cases as Myers v. U.S., 272 U.S. 52 (1926); Humphrey's Executor v. U.S., 295 U.S. 602 (1935); Wiener v. U.S., 357 U.S. 349 (1958); and Buckley v. Valeo, 424 U.S. 1 (1976). The Vacancies Act [5 U.S.C. 3345-3349d] (referred to as “the revised Act”) prescribes requirements for filling, both permanently and temporarily, vacancies that are required to be filled by Presidential appointment with Senate confirmation (PAS appointments). The Act was substantially amended in 1998, by the Federal Vacancies Reform Act of 1998 [Public Law 105277, section 151].

Presidential Appointments The revised Act provides rules for temporarily filling vacant PAS positions. In most cases, the Act is the exclusive means for filling vacant PAS positions with a person

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designated as the “Acting” officer. The Act also recognizes other limited means to fill PAS positions, such as recess appointments and other specific statutory authorities. The 1998 amendments specifically provide that an agency head’s general authority to delegate or reassign duties within the agency does not remain a viable, separate authority for filling a vacant PAS position on a temporary basis. An office becomes “vacant” when the incumbent “dies, resigns, or is otherwise unable to perform the functions and duties of the office.” The Act does not specify the full range of circumstances that would constitute such inability, but legislative history indicates it would include the incumbent being fired, imprisoned, or suffering a serious illness. The Act also specifies that the expiration of a term of office constitutes an inability to perform the functions and duties of the office. Under the Act, there are generally three categories of persons who can serve in an acting capacity for vacant PAS positions:

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The “first assistant” to the vacant office. The Act does not define this term, but legislative history generally refers to the top deputy to the position. An existing PAS (from the agency at issue or from any other agency) designated by the President (and only the President). Certain senior agency employees designated by the President (and only the President). Specific timeframes and other statutory considerations limit service for all three categories. There is a general limit of 210 days for serving in an acting PAS capacity. With respect to any vacancy that exists during the 60-day period beginning with a Presidential inauguration, the 210 days begin on the later of 90 days after the inauguration or 90 days after the date of the vacancy. There are also time constraints if the President nominates a person to fill the PAS position on a permanent basis during the period that the position is held on an acting basis. The Office of Legal Counsel at the Department of Justice has issued extensive guidance on the Vacancies Act [see http://www.usdoj.gov/olc/finalqa.htm]. That Office should be contacted to respond to specific questions (202-514-2051). The Assistant to the President for Presidential Personnel coordinates all activities relating to Presidential appointments.

Effective Date of PAS Appointments Presidential appointments subject to Senate confirmation (PAS) are effective on the date the President signs the commission document. However, the individual’s pay does not begin until the appointee is sworn in and signs the oath of office. For individuals serving under term PAS appointments, the term begins on the effective date of the appointment, i.e., the day the President signs the commission document. Pay and Leave Individuals appointed by the President, with Senate confirmation, occupy positions that are placed by law in the Executive Schedule, or are established at pay rates equivalent to the Executive Schedule. This schedule has five levels: Levels I through V (the lowest). In 2008, annual pay rates for the Executive Schedule are: Level I ($191,300), Level II ($172,200),

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Level III ($158,500), Level IV ($149,000), and Level V ($139,600). Locality pay does not apply to the Executive Schedule. Individuals in the executive branch who are appointed by the President to positions in the Executive Schedule are not covered by the leave system. They do not earn annual or sick leave and, therefore, are not charged leave for absences from work.

Senior Executive Service (SES) Appointments This subsection provides an overview of career and noncareer SES positions and key transition issues, such as suspending the processing of SES selections during a change of agency head and a 120-day moratorium on SES reassignment during that period.

Overview

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The SES is a unique executive personnel system completely separate from the competitive and excepted services. The SES includes most of the top managerial, supervisory, and policy positions in the executive branch that are not required to be filled by Presidential appointment with Senate confirmation.

SES Positions Every 2 years, OPM allocates to each agency a specific number of SES “spaces” based on agency needs. Within that numerical allocation, each agency may establish SES positions and designate them as either “General” or “Career Reserved.” General positions may be filled by career, noncareer, or limited appointees. Career Reserved positions must be filled by career SES appointees to ensure public confidence in the impartiality of the Government. OPM may make temporary SES allocations available to individual agencies to help with transitions. SES Noncareer Appointments Agencies may make SES noncareer appointments to any SES General position without regard to competitive requirements and may also set the pay level of the appointees. However, an agency must receive a noncareer appointment authority from OPM before making the appointment. The White House Office of Presidential Personnel must also approve the appointment before it can be made, except that an appointment to any SES position within an independent regulatory commission is not subject to review or approval by any officer or entity within the Executive Office of the President. [See 5 U.S.C. 3392(d).] This applies to initial appointments, reassignments, and transfers to another Department or agency. The law limits the total number of SES positions that can be filled by noncareer appointment to 10 percent of the Governmentwide SES space allocation and 25 percent of an individual agency’s allocation (unless the allocation is three or less). Additional limitations have been imposed, administratively or by other statutes, on an agency-by-agency basis. Agencies can terminate noncareer appointments at any time with a 1-day notice. Noncareer appointees removed from the Federal service have no right of appeal to the Merit

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Systems Protection Board (MSPB). A sample separation notice is provided at Appendix C. [See 5 U.S.C. 3592; 5 CFR part 359, subpart I.]

SES Limited Appointments There are two types of SES limited appointments: limited term and limited emergency. Limited term appointments may be made for up to 36 months to a position with duties that will end within 36 months or an earlier specified time period. Limited term appointments are not used to temporarily promote individuals to continuing SES positions. Limited emergency appointments may be made for up to 18 months to meet a bona-fide, unanticipated, urgent need. Limited appointments may be made only to SES General positions. An individual may not serve more than 36 months in a 48-month period on any combination of limited appointments. Limited appointees must meet the qualification requirements established by the agency. Agencies must obtain limited appointment authorities from OPM on a case-by-case basis. However, OPM has provided each agency a pool of limited authorities equal to 3 percent of its total SES position allocation, or one authority, whichever is greater. An agency may use this pool to appoint a career or career-type non-SES employee to a position that is appropriate for SES limited term or SES limited emergency appointment without obtaining OPM approval. In addition, to help with transitions, OPM may authorize a limited term appointment authority for an individual who has been nominated by the President, but whose appointment is pending Senate confirmation. These limited appointments may not be made to the position for which the individual has been nominated. Agencies may terminate limited appointments at any time with a 1-day notice. Limited SES appointees who are removed have no right of appeal to MSPB on termination of the appointment. However, some limited appointees have placement rights to positions outside the SES. A career or career-type non-SES employee who is given a limited appointment in the same agency has placement rights to his or her former position or to one with like status, tenure, and grade or pay. [See 5 U.S.C. 3592; 5 CFR part 359, subpart I.] If such an individual was covered by 5 U.S.C. 7511 immediately before the SES limited appointment, he or she is also entitled to adverse action procedures applicable to career SES appointees in the event a removal based on conduct is proposed. A career or career-type employee who accepts a limited appointment in another agency has neither of these benefits. SES Career Appointments Career appointments may be made to either SES General or Career Reserved positions. Career appointments have no time limitation and provide certain job protections and benefits not conferred by noncareer and limited appointments. Initial career appointments must meet competitive SES merit staffing provisions at the time of selection for the SES. Following selection by the agency, the individual’s executive qualifications must be approved by an OPMadministered Qualifications Review Board (QRB) before the career appointment can be made.

Transition Issues: SES Suspension of Processing of SES Candidates In accordance with 5 CFR 3 17.502(d), OPM may suspend processing of an agency’s SES Qualifications Review Board (QRB) cases when the agency’s head departs or announces

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his or her departure. This is done to ensure that the incoming head of that agency will have the full opportunity to exercise his or her prerogative to make or approve executive resource decisions that will affect the agency’s performance during his or her tenure. To that end, OPM will impose a moratorium on the processing of a particular agency’s SES QRB cases when the head of that agency departs for any reason, effective immediately upon the effective date of his or her departure. A QRB moratorium will also be imposed when the head of an agency announces his or her intention to leave that office, effective immediately upon that announcement. While a QRB moratorium is intended to preserve the prerogatives of an incoming agency head, this must be balanced against the need to ensure the continuity of agency operations during such transitions. Accordingly, OPM will consider requests for exceptions to an agency’s QRB moratorium on a case-by-case basis. Requests for exceptions should be signed by the agency head or the official who is designated to act in the agency head’s absence and must specifically address the potential for adverse impact on national security, homeland security, or critical agency mission, program, or function if a particular SES candidate is not immediately certified.

Moratorium on SES Career Reassignments Agencies may reassign SES career appointees to any SES position in the agency for which they are qualified, following a 15-day notice for a reassignment that does not require a geographical move. Consultation with the executive, followed by 60 days’ advance notice, is required for a reassignment that includes a geographical move. However, when there are changes in agency political leadership, the law provides for a 120-day moratorium on involuntary reassignments of career SES appointees. Career executives are always prepared to serve new leadership. Balancing continuity and change is the fundamental responsibility of the senior executive. The moratorium was established to prevent peremptory reassignments by new appointees without adequate knowledge of the career executives. An SES career appointee may not be involuntarily reassigned within 120 days of the appointment of a new agency head (including recess appointment) or within 120 days after the appointment of a career appointee’s new noncareer supervisor who has the authority to make that career appointee’s initial performance appraisal. A voluntary reassignment during the 120-day period is permitted, but the appointee must agree in writing before the reassignment. [See 5 U.S.C. 3395; 5 CFR part 317, subpart I.] The appointment of a new agency head always starts a 120-day moratorium. Another official may not take a reassignment action, even if that official has been in office more than 120 days. If a moratorium results from appointment of a new noncareer supervisor, the agency head may not take an involuntary reassignment action, even if the agency head has been in office more than 120 days. Designating an “acting” agency head or noncareer supervisor (e.g., by a detail or when a deputy acts in the position) is not the same as making an appointment. Therefore, the statutory moratorium is not technically applicable. However, the agency at its discretion, may apply the moratorium in such situations. In this case, if the “acting” individual later receives a permanent appointment to the position without a break in service, time spent under the agency-imposed moratorium counts toward the 120-day moratorium initiated by the permanent appointment.

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In calculating the 120-day moratorium, any days (not to exceed a total of 60) during which the career appointee is serving on a detail or other temporary assignment apart from the appointee’s regular position are not counted. However, the moratorium provision does not restrict the total length of a detail; i.e., it may exceed 60 days.

Career Appointees Who Accept Presidential Appointments Presidential appointees are among the executives subject to change in a new administration. However, a former SES career appointee who was appointed by the President to a civil service position outside the SES without a break in service, and who leaves the Presidential appointment for reasons other than misconduct, neglect of duty, or malfeasance, is entitled by law to be reinstated to the SES. If not voluntarily reinstated through direct negotiations with an agency, the former career appointee may apply to OPM up to 90 days after separation for a directed reinstatement. [See 5 U.S.C. 3593(b) and 5 CFR 317.703.] Briefings for New SES Members OPM sponsors 1-day briefings for new SES members several times during the year. These programs provide executives with an understanding of the administration’s goals and priorities and an opportunity to gain a broader perspective of executive branch domestic, economic, and foreign policy issues and initiatives. SES members also gain information about the SES, advice about working with Congress, knowledge of effective leadership strategies, and opportunities for networking. Additional Guidance Appendix E contains additional technical guidance on the Senior Executive Service.

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Excepted Service Appointments [OPM Contact: Christina Vay, 202-606-0960] The “excepted service” includes all positions in the executive branch that have been excepted from the competitive service or the Senior Executive Service (SES) by statute, the President, or OPM. This section covers positions excepted from the competitive service by OPM under Schedules C (the policy-determining positions), A (e.g., attorneys), and B (e.g., work-study positions), and expert and consultant positions excepted by law.

Overview: Schedule C Positions and Appointments Schedule C positions are excepted from the competitive service because they have policy- determining responsibilities or require the incumbent to serve in a confidential relationship to a key official. Most Schedule C positions are at the GS-15 level and below. Appointments to Schedule C positions require advance approval from the White House Office of Presidential Personnel and OPM. OPM does not review the qualifications of a Schedule C appointee; final authority on this matter rests with the appointing official. Employees in Schedule C positions are subject to removal at the discretion of the administration or appointing official. Agencies may separate Schedule C appointees whenever the confidential or policydetermining relationship between the incumbent and his or her superior ends. Schedule C appointees are not covered by statutory removal procedures and generally have no rights to

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appeal removal actions to the Merit Systems Protection Board. This is true regardless of veterans’ preference or length of service in the position. Agencies should consult their General Counsel or OPM’s General Counsel on Schedule C separations. Appendix C contains a sample separation notice.

Transition Issues: Schedule C

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Establishing Regular Schedule C Positions OPM authorizes the establishment of each Schedule C position and revokes the authority when the position is vacated. The agency head must certify that the position was not created solely or primarily for the purpose of detailing the incumbent to the White House. A list of Schedule C positions is published annually in the Federal Register, under part 213 of OPM’s regulations. The President can also authorize individual exemptions by Executive order, such as those listed at 5 CFR 6.8. Temporary Transitional Schedule C Positions To help with transitions, OPM has delegated authority to agencies to establish a limited number of temporary transitional Schedule C positions [5 CFR 213.3302]. Agencies can use this delegated authority during the first year of a new Presidential administration, or during a 1-year period immediately following the appointment of a new agency head or the designation of an “acting” agency head. Agencies can make appointments under this authority for up to 120 days and may extend the appointment once for up to 120 more days. The agency must notify OPM within 5 working days that it has made an appointment to a temporary transitional Schedule C position. Agencies must also notify OPM within 3 working days when the position has been vacated. In addition, the agency head or his or her designee must certify that the position was not created solely or primarily for the purpose of detailing the incumbent to the White House and must identify the position and incumbent. When an agency plans to convert an employee in a temporary transitional Schedule C position to a nontemporary (“regular”) Schedule C appointment, the temporary appointment may be designated as a “provisional appointment” [5 CFR 3 16.403]. This permits the agency to treat the employee as a nontemporary appointee for benefits purposes. Provisional appointments must be made under an authority established by law, Executive order, or regulation, or granted by OPM [5 CFR 316.403(b)]. Documentation instructions are in OPM’s Guide to Processing Personnel Actions, Chapter 11, Excepted Service Appointments, available at www.opm.gov/feddata/gppa/gppa.asp. Briefings for New Schedule C Appointees OPM sponsors 1-day briefings for new Schedule C appointees several times a year. These programs provide appointees with an understanding of the President’s expectations, a broader perspective on executive branch initiatives and priorities, and information on Government ethics, the Hatch Act, and current domestic, economic, and foreign policy issues and initiatives. OPM publishes notices of these briefings and registration information on its website (www.opm.gov/events/index.htm).

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Overview: Schedules A and B In addition to the policy-determining or confidential positions described in the preceding section, Congress, the President, or OPM can except other positions from the competitive service and the Senior Executive Service. OPM excepts positions under Schedules A and B for a variety of reasons. Employees in these positions are not generally subject to change during transitions. Positions Excepted by Statute and the President Positions that have been excepted by statute include those in the Foreign Service (Department of State); the Federal Bureau of Investigation in the Department of Justice; all positions in the Tennessee Valley Authority, the Government Accountability Office, and the Postal Service; and medical employees of the Veterans Health Administration in the Department of Veterans Affairs. Most of these positions are under separate merit systems and are not subject to change during transitions. Positions Excepted by the Office of Personnel Management OPM has administratively excepted two other categories of positions from the competitive service because it is not practical to hold competitive examinations for them. These are Schedule A and Schedule B positions.

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Schedule A Positions. Examples include chaplains, teachers in military dependent school systems overseas, faculty positions of service academies, and certain positions at isolated locations. Attorney positions are also in Schedule A, because OPM is prohibited in its appropriations legislation from spending funds to examine for attorney positions. Schedule B Positions. Schedule B is used primarily for career-related work study positions. Schedule A and B appointees with veterans’ preference who have one year of qualifying service are entitled to statutory procedural and appellate rights if they are removed from the Federal service for conduct or performance reasons. In addition, many excepted service employees without veterans’ preference receive statutory procedural and appellate rights, provided they have completed two years of qualifying service.

Expert and Consultant Appointments Agencies may appoint experts and consultants to positions that primarily require performance of advisory services, rather than performance of operating functions, without regard to competitive civil service requirements [5 U.S.C. 3109]. Agencies may use expert and consultant appointments for individuals who have been nominated by the President, but not yet confirmed. In addition, agencies may use this authority to appoint individuals whose permanent excepted appointment is pending [5 CFR 304.103(b)(6)]. The individual and the work assigned must comply with the expert or consultant requirements in 5 CFR part 304.

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Agencies may not use expert and consultant appointments to avoid employment procedures or solely in anticipation of a competitive appointment. An expert and consultant appointment authority may not be used to fill positions in the Senior Executive Service [5 U.S.C. 3109]. However, if a position meets the criteria for placement in the SES, OPM may authorize a limited appointment authority to appoint an individual during the transition period. Experts and consultants appointed under 5 U.S.C. 3109 may not be paid more than the daily rate for GS-15, step 10, excluding locality pay, unless a higher rate is specifically authorized by statute. [See also 5 CFR 304.105.] They may also be reimbursed for travel (if they are intermittent employees), but not for moving expenses. They may participate in orientation and training programs at Government expense.

IV. COMPENSATION Pay and Leave This section provides information on basic salary levels, locality pay, aggregate pay limits, pay flexibilities available to address staffing difficulties, pay for reemployed annuitants, leave, and pay on separation from the Government.

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Basic Salary Levels Executive Schedule. The law prescribes the salaries of most positions filled by Presidential appointees at levels I through V of the Executive Schedule. In 2008, Executive Schedule salaries range from $139,600 (level V) to $191,300 (level I). Executive Schedule officials do not receive locality pay. Senior Executive Service. Agency heads may set the salaries of members of the Senior Executive Service (SE S) at a rate within a range fixed by statute. The maximum SES rate is the rate for level II or III of the Executive Schedule, with the higher level II maximum applicable only to SES positions covered by a certified SES performance appraisal system. In 2008, SES basic salaries may range from a minimum rate of $114,468 to a maximum rate of $158,500 (or $172,200 for SES positions covered by a certified SES performance appraisal system). SES members do not receive locality pay. Generally, an SES member may receive a pay adjustment only once during any 12-month period. [OPM Contact: Paul Thompson, 202606-1429] Senior-Level Positions. The senior-level (SL) pay system includes high-level positions without executive responsibilities, as well as positions that the law or the President excludes from the SES. Agency heads may set the pay of an SL employee at any rate within a range fixed by statute. In 2008, the basic pay for senior-level positions ranges from $114,468 to $149,000, excluding locality payments. The maximum locality-adjusted rate is $158,500. Some Schedule C employees are under the SL pay system. [OPM Contact: Paul Thompson, 202-606-1429]

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General Schedule. The General Schedule (GS) pay system has 15 grade levels, with 10 salary steps at each grade. The maximum rate of basic pay in 2008 is $124,010 (GS-15, step 10), excluding locality pay. Additional locality payments for employees in the 48 contiguous States range from 13.18 percent to 32.53 percent in 2008. No locality-adjusted rate may exceed the rate for level IV of the Executive Schedule – $149,000 in 2008. A new GS employee generally enters at the first step of the appropriate grade. Most Schedule C employees are under the GS pay system. Special Pay Authorities. Some agencies have special authorities that govern the setting of pay for all or certain employees. For example, the Department of Defense may set pay for employees under the National Security Personnel System and the Administrator of the Federal Aviation Administration (FAA) may set pay for FAA employees. The President may set the pay of certain White House employees.

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Locality Pay Most Federal employees – including GS and SL employees, but excluding SES members and Executive Schedule officials – are eligible for supplemental locality-based payments in addition to the basic rate of pay. These payments apply only in the 48 contiguous States. In 2008, the locality payments range from 13.18 to 32.53 percent. The maximum localityadjusted rate of pay for GS employees is the rate for Executive Schedule level IV ($149,000 in 2008); for SL employees the maximum rate is the rate for Executive Schedule level III ($158,500 in 2008). Aggregate Pay Limitations Most Federal employees are subject to an annual aggregate pay limitation under 5 U.S.C. 5307 that restricts the total amount of pay an employee may receive in any calendar year. Pay in excess of the limitation is payable at the beginning of the next calendar year and counts toward the next year’s limit. For SES members and SL employees covered by certified performance appraisal systems, the aggregate pay limit is the annual rate of pay for the Vice President ($221,100 in 2008). For all others, the aggregate pay limit is the annual rate of pay for level I of the Executive Schedule ($191,300 in 2008) [5 CFR part 530, subpart B].

Pay Flexibilities Agencies may use a number of discretionary pay flexibilities to deal with welldocumented staffing difficulties. Specific statutory and regulatory conditions govern the use of each of these flexibilities, including agency justification and documentation requirements. Agencies should exercise these flexibilities judiciously, especially when hiring other than career employees. These payments are subject to public scrutiny and third-party review. Use them only when necessary to address documented staffing problems.

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Advance Payments An agency may provide for the advance payment of basic pay (including any locality payment) covering not more than two pay periods to any individual who is newly appointed to a position, except for appointment as agency head [5 CFR part 550, subpart B]. Above Minimum Hiring Rates – GS Agencies may set the pay of individuals newly appointed to General Schedule positions at a step above the first step of their grade based on the employee’s superior qualifications or a special need of the agency for the employee’s services. Agencies may use this flexibility at any appropriate GS grade. Agencies may set pay at the higher step only upon initial appointment or upon reappointment after a 90-day break in service. (See 5 CFR 531.212(a)(3) for exceptions to the 90-day break-in-service requirement.) [5 CFR 53 1.212].

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Pre-Employment Interviews – Payment of Travel and Transportation Expenses Agencies may pay travel and transportation expenses for travel to and from preemployment interviews to any individual they consider for employment. Travel expenses to attend confirmation hearings are considered part of the pre-employment interview process. Agencies may also pay the travel expenses of a new appointee from his or her place of residence at the time of selection or assignment to the duty station [5 CFR part 572]. [OPM Contact: Janice Warren, 202-606-0960] Recruitment and Relocation Incentives An agency may pay an incentive to an employee newly-appointed in the Federal Government (i.e., a recruitment incentive) or to an employee who must relocate (i.e., a relocation incentive) to fill a position that would otherwise be difficult to fill. In return, the employee must sign an agreement to complete a period of service with the agency (6-month minimum for recruitment incentives). The total amount of recruitment or relocation incentive payments may not exceed 25 percent of the annual rate of basic pay of the employee at the beginning of the service period, multiplied by the number of years in the service period. With OPM approval, this cap may be raised to 50 percent (based on a critical agency need), as long as the total incentive does not exceed 100 percent of the employee’s annual rate of basic pay at the beginning of the service period. An agency may pay a recruitment or relocation incentive as an initial lump-sum payment at the beginning of the service period, in equal or variable installment payments throughout the service period, as a final lump-sum payment upon completion of the service period, or in a combination of these methods. Agencies may pay recruitment and relocation incentives to employees under the General Schedule, Senior Executive Service, senior-level pay system, Executive Schedule, and certain other pay systems. Recruitment and relocation incentives are subject to the aggregate limitation on total pay that an employee may receive in a calendar year [5 CFR part 575, subparts A and B]. (See “Aggregate Pay Limitations” above.) Retention Incentives An agency may pay an incentive to a current employee if—

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The agency determines that the unusually high or unique qualifications of the employee or a special agency need for the employee’s services makes it essential to retain the employee if he or she would be likely to leave the Federal Government (for any reason, including retirement) in the absence of a retention incentive; or The agency has a special need for the employee’s services that makes it essential to retain the employee in his or her current position during a period of time before the closure or relocation of the employee’s office, facility, activity, or organization and the employee would be likely to leave for a different position in the Federal service in the absence of a retention incentive. An agency must establish a single retention incentive rate for each individual or group of employees, expressed as a percentage of each employee’s rate of basic pay, not to exceed 25 percent (for an individual employee) or 10 percent (for a group or category of employees). With OPM approval, this cap may be increased to as much as 50 percent. An agency may pay a retention incentive in installments after the completion of specified periods of service or in a single lump sum after completion of the full period of service required by the service agreement. Agencies may pay retention incentives to employees under the General Schedule, Senior Executive Service, senior-level pay system, Executive Schedule, and certain other pay systems. Retention incentives are also subject to the aggregate limitation on total pay that an employee may receive in a calendar year. (See “Aggregate Pay Limitations” above.). [5 CFR part 575, subpart C] Note: An agency may not pay a recruitment, relocation, or retention incentive to an employee in a position (1) to which the individual was appointed by the President; (2) in the Senior Executive Service as a noncareer appointee; (3) which has been excepted from the competitive service by reason of its confidential, policy-determining, policy-making, or policy-advocating character; (4) designated as the head of an agency, including an agency headed by a collegial body composed of two or more individual members; or (5) in which the employee is expected to receive an appointment as the head of an agency.

Student Loan Repayments For most types of employees, agencies can establish a program under which they may repay certain types of Federally-made, insured or guaranteed student loans as an incentive to recruit or retain highly qualified personnel. Under this authority, an agency may make loan payments to a loan holder of up to $10,000 for an employee in a calendar year up to an aggregate maximum of $60,000 for any one employee. In return, the employee must sign a service agreement to remain in the service of the paying agency for a period of at least 3 years. If the employee separates voluntarily or is separated involuntarily for cause or poor performance before fulfilling the service agreement, he or she must reimburse the paying agency for all student loan repayment benefits received. An agency may not provide student loan repayment benefits to an employee occupying a position excepted from the competitive service because of its confidential, policy- determining, policy-making, or policy-advocating character (e.g., Schedule C appointees) [5 CFR part 537].

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Reemployed Annuitants In most cases, unless reemployment is with the Department of Defense, when Federal retirees (covered by the Civil Service Retirement System or the Federal Employees’ Retirement System) are reemployed in the Federal service, their salaries are reduced by the amount of their annuities [5 U.S.C. 8344 and 8468]. The reduction also applies when retirees are appointed as experts or consultants. However, there are some exceptions, so please consult with the Human Resources Office in your employing agency. [OPM Contact: Janice Warren, 202-606-0960]

Leave

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Officers and employees who are appointed by the President (PAS and PA) are not covered by the Federal leave system established by 5 U.S.C. chapter 63 as long as their rate of basic pay is greater than the rate of basic pay for GS-15, step 10, excluding locality pay ($124,010 in 2008). These Presidential appointees do not earn annual and sick leave and cannot be charged leave for absences from work. Employees who are members of the SES and Schedule C appointees are covered by the Federal leave system (unless they are Presidential appointees whose rate of basic pay is greater than the rate of basic pay for GS-15, step 10). Career SES members who accept a Presidential appointment without a break in service to a position outside the SES at a rate of basic pay equivalent to Executive Level V or higher, can elect to retain their SES leave benefits and continue to earn leave while serving in the Presidential appointment.

Annual Leave Generally, employees earn 13, 20, or 26 days of annual leave a year, depending on years of service. However, SES members, employees in senior-level and scientific or professional (SL/ST) positions, and certain employees in “SES equivalent” positions earn 8 hours of annual leave each biweekly pay period, regardless of years of service. Annual leave accrues incrementally, i.e., 4, 6, or 8 hours every pay period. SES members, as well as SL/ST and positions designated under 10 U.S.C. 1607(a) as Intelligence Senior Level positions, may carry over up to 90 days of annual leave to the next leave year; most other employees may carry over up to 30 days of annual leave. Supervisors may grant advance annual leave consistent with the agency’s leave policy. The amount of annual leave that may be advanced may not exceed the amount of annual leave the employee will accrue in the remainder of the leave year. Note: Under certain conditions, an agency may give a newly-appointed employee, or an employee who is reappointed following a break in service of at least 90 calendar days, credit for qualifying non-Federal service in determining the employee’s rate of annual leave accrual. The employing agency must determine that the skills and experience the individual possesses are essential to the new position and were acquired through performance in a non-Federal or uniformed service position having duties directly related to the position to which he or she is being appointed and that the use of this authority is necessary to achieve an important agency mission or performance goal.

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Sick Leave Employees earn 13 days of sick leave each year (which accumulates without limit in succeeding years). Sick leave also accrues incrementally, i.e., 4 hours every 2 weeks. In certain situations, employees may use sick leave for family care purposes. They may use a total of up to 12 weeks of sick leave each year to care for a family member with a serious health condition. They may also use sick leave for adoption or bereavement. At the discretion of the agency, a maximum of 30 days of sick leave may be advanced to an employee with a medical emergency, for purposes related to the adoption of a child, for family care or bereavement purposes, or to care for a family member with a serious health condition.

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Family and Medical Leave Under the Family and Medical Leave Act of 1993 (FMLA), an employee is entitled to a total of 12 workweeks of unpaid leave during any 12-month period for: (1) the birth of a child and care of the newborn; (2) the placement of a child with the employee for adoption or foster care; (3) the care of an employee’s spouse, son or daughter, or parent with a serious health condition; and (4) an employee’s own serious health condition that makes him or her unable to perform the duties of his or her position. An employee may substitute annual leave or sick leave, as appropriate, for unpaid leave under the FMLA. Employees must have 12 months of service (need not be continuous months) to qualify to take FMLA leave. Employees who are family members of a servicemember with a serious injury or illness that he or she incurred in the line of duty while on active duty in the Armed Forces, and who are providing care for that servicemember, are entitled to up to 26 weeks of FMLA leave (military family leave) during a single 12-month period to care for the servicemember. During the single 12-month period, the employee is entitled to a combined total of 26 weeks of regular FMLA leave and military family leave. Leave Transfer and Leave Bank Programs An employee who has a personal or family medical emergency and who has exhausted his or her own leave may receive donated annual leave from other Federal employees through the voluntary leave transfer or leave bank programs. All agencies must have a leave transfer program. In addition, an agency may also choose to establish a leave bank for its employees. Leave Transfer for Combat-related Disability An employee who sustains a combat-related disability while serving as a member of the Armed Forces (including a reserve component) and is undergoing medical treatment for that disability may receive donated annual leave from other Federal employees through the voluntary leave transfer program without having to exhaust his or her available paid leave. A qualified leave recipient is eligible to receive donated annual leave for up to 5 years from the start of the employee’s treatment, as long as the employee continues to undergo such medical treatment. The amendments to 5 U.S.C. 6333(b) made by Public Law 110-181 took effect on January 28, 2008. For an employee who was already undergoing medical treatment on January 28, the 5- year period begins on the date of enactment.

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Other Leave In addition, employees are entitled to court leave, military leave, leave for bone marrow or organ donation, and other types of leave. Additional information about the Federal Government’s leave programs is available on OPM’s website at http://www.opm.gov/ oca/leave..

Separation Payments Certain payments may be payable to an individual who is separated from the Federal service.

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Severance Pay Severance pay is authorized for full-time and part-time employees who are involuntarily separated from Federal service and who meet other conditions of eligibility. To be eligible for severance pay, an employee must be serving under a qualifying appointment, have completed at least 12 months of continuous service, and be removed from Federal service involuntarily for reasons other than misconduct or unacceptable performance. A Presidential appointment, an excepted appointment under Schedule C, a noncareer appointment in the SES (as defined in 5 U.S.C. 3 132(a)), and an equivalent appointment made for similar purposes, are not qualifying appointments; therefore, an individual serving under one of these appointments is not eligible for severance pay. For additional information on severance pay, see 5 CFR part 550, subpart G. Lump-Sum Payments for Unused Annual Leave Employees who separate from Federal service and who are covered by the Federal leave system are entitled to a lump-sum payment for unused annual leave. The lump-sum payment equals the pay the employee would have received if the employee had remained in Federal service on annual leave (as provided in OPM regulations). This payment excludes (among other things) any incentives or allowances that are paid for the sole purpose of encouraging an employee to remain in Government service, such as retention incentives and physicians comparability allowances. Most Presidential appointees (PAS and PA) are excluded from coverage under the Federal leave system and therefore do not receive lump-sum annual leave payments upon separation. A current Federal employee who receives a Presidential appointment does not receive a lump- sum payment for his or her unused annual leave. The unused annual leave is held in abeyance for recredit if and when the employee is subsequently reemployed in a position covered by the Federal leave system. If the individual separates from Federal service while under a Presidential appointment, he or she will receive a lump-sum payment for unused annual leave based on the rate of pay in effect for the position the employee held immediately before the employee accepted the Presidential appointment. When an employee who received a lump-sum payment for unused annual leave is reemployed in the Federal service before the end of the annual leave period covered by the lump-sum payment, he or she must refund a portion of the lump-sum payment. The refunded portion covers the period between the date of reemployment and the expiration of the lumpsum leave period. The employing agency will recredit to the employee an amount of annual

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leave that is equal to the days or hours of work remaining between the date of reemployment and the expiration of the lump-sum leave period. Additional information on lump-sum payments for annual leave is available on OPM’s website at http://www.opm.gov/oca/leave.

RETIREMENT, HEALTH AND LIFE INSURANCE, OTHER BENEFITS New Employees Note: Retirement and insurance coverage for reemployed Federal annuitants may be handled differently from that of other employees. The agency’s Human Resources Office can provide the necessary information to these employees.

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Health Insurance Eligibility for participation in the Federal Employees Health Benefits (FEHB) Program depends on the type of Federal appointment. Generally, Federal employees who receive appointments that are limited to 1 year or less are excluded. However, individuals with temporary appointments designated as “provisional” are eligible for FEHB coverage, since this type of appointment is used to expedite placement in a position expected to be permanent while the necessary procedures required for non-temporary appointment are proceeding, such as a pending Senate confirmation or security clearance. After the initial opportunity to enroll, the Program permits enrollment changes during a 4-week Open Season each November/December and upon the occurrence of certain other qualifying life events such as changes in family status. Plans. Eligible new employees will receive materials describing available plans from the employing agency and must make an enrollment election within 60 days of becoming eligible. The Program offers each employee several Governmentwide fee-for-service plans (some of which require membership in employee organizations) and health maintenance organizations serving the geographic area in which the employee lives or works. Enrollment may be for self- only or for self and family. Cost-sharing. The Government contribution equals 72 percent of the program-wide weighted average of subscription charges in effect each year, for self-only enrollments and for self-andfamily enrollments, subject to the maximum of 75 percent of the charges for any particular plan or option. Employees are subject to payroll withholdings for health plan costs in excess of the Government contribution. Premium Conversion. Eligible new employees who elect to enroll in the FEHB Program are eligible to participate automatically in premium conversion unless they waive participation. Premium conversion is a tax benefit. It allows an employee’s contribution for health insurance to be made on a pre-tax basis, which means that the money is not subject to Federal income, Medicare, or Social Security taxes.

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Consumer-Driven Health Plans. High Deductible Health Plans (HDHP) are offered in the FEHB Program, with health savings accounts (HSAs) and, for those not eligible, health reimbursement arrangements (HRAs). An HDHP with a Health Savings Account (HSA) provides traditional medical coverage and a tax-free way to build savings for future medical expenses. The HDHP features higher annual deductibles (a minimum of $1,100 for Self and $2,200 for Self and Family coverage) than other traditional health plans. The maximum outof-pocket limitations for HDHPs participating in the FEHB Program in 2008 are $5,600 for Self and $11,200 for Self and Family enrollment. The HSA and HRA associated with each HDHP will be funded from premiums. The contribution or credit amount will vary from plan to plan. More information on this option is on OPM’s website at www.opm.gov.hsa.

Life Insurance Eligibility to participate in the Federal Employees’ Group Life Insurance (FEGLI) Program also depends on the type of Federal appointment. Generally, Federal employees who receive appointments limited to 1 year or less are excluded. However, individuals with temporary appointments designated as “provisional” are eligible as explained above under Health Insurance. If life insurance coverage is waived on first opportunity to enroll, subsequent opportunities to elect coverage are very limited.

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Basic. Eligible employees automatically receive Basic life insurance coverage unless they file a written waiver. The Basic insurance amount is equal to annual basic pay, rounded to the next higher multiple of $1,000, plus $2,000. It includes additional coverage for employees under age 45, plus accidental death and dismemberment coverage (AD&D). Optional. The Program offers three types of Optional life insurance, without evidence of good health, which employees may elect within 31 days of becoming eligible. Option A offers $10,000 life insurance and AD&D coverage; Option B offers life insurance (no AD&D) coverage in multiples of 1, 2, 3, 4, or 5 times the employee’s annual rate of basic pay (rounded to the next higher multiple of $1,000); and Option C is life insurance (no AD&D) on the employee’s family members in multiples of 1, 2, 3, 4, or 5 times the amount of $5,000 on death of a spouse and $2,500 on death of an eligible child. Cost. The cost of Basic life insurance is shared by the employee and the Government; the employee pays two-thirds, and the Government pays one-third. The employee’s biweekly premium is 15 cents per $1,000 of the Basic insurance amount. Employees pay the full cost of all Optional insurance, and premiums for Optional insurance are age-adjusted.

FSAFEDS New employees working for an executive branch agency, or an agency that has adopted the Federal Flexible Benefits Plan ("FedFlex"), can elect to participate in the Federal Flexible Spending Accounts Program (FSAFEDS). FSAFEDS offers two different flexible spending accounts (FSAs): a health flexible spending account, and a dependent care flexible spending account. Information on this program is on the FSAFEDS website at www.fsafeds.com. New and newly-eligible employees have 60 days after their entry on duty to enroll in this program. However, there is also an enrollment opportunity each year at the same time as the

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FEHB Open Season during which eligible employees may enroll in an FSA for the following year.

Federal Long Term Care Insurance Program Eligible employees may apply for long term care insurance as a new employee within 60 days after beginning their Federal position. An eligible employee is one who serves in a position that conveys eligibility for the FEHB Program, even if he or she does not enroll. New employee applications require only abbreviated underwriting. Spouses are also eligible to apply with abbreviated underwriting during those 60 days. Either or both may choose to apply; however, there is no “self and family” option. Long Term Care Partners, the administrator of the program, evaluates each application to determine eligibility to enroll in the Program. Cost-sharing. The Federal Long Term Care Insurance Program is an employee-pay-all program. By law, there is no Government contribution. OPM’s long term care website is at www.ltcfeds.com.

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Federal Employee Dental and Vision Insurance Program (FED VIP) An eligible employee may apply for FEDVIP coverage as a new employee within 60 days after beginning his or her Federal position. An eligible employee is a Federal or U.S. Postal Service employee who is eligible for FEHB coverage, whether or not the employee is enrolled. After the initial opportunity to enroll, FEDVIP permits enrollment changes during a 4-week Open Season each November/December and upon the occurrence of certain other qualifying life events such as changes in family status. Plans. New employees must make an election within 60 days of becoming eligible. FEDVIP currently offers each employee the choice of three nationwide vision plans and four nationwide dental plans. Three additional dental plans offer coverage in specific regions. Enrollment may be for self only, self plus one, or self and family. Eligible new employees may enroll in either a dental plan or a vision plan, or both. Cost-sharing. FEDVIP is an employee-pay-all program. By law, there is no Government contribution. Premium Conversion. Premiums are paid for FEDVIP coverage on a pre-tax basis (premium conversion) for active employees. Unlike the FEHB Program, employees may not opt out of premium conversion for FEDVIP. The FEDVIP website can be found at www.opm.gov/insure/dentalvision.

Retirement Coverage Eligibility for retirement coverage depends upon the type of appointment. Most types of appointments, including “provisional” appointments, will confer retirement coverage eligibility. However, generally, temporary appointments limited to a year or less and intermittent appointments are excluded from coverage eligibility. Other less common appointments may also be excluded from coverage eligibility.

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Types of Coverage. Retirement-eligible appointees who are new to Government service will be covered under the Federal Employees’ Retirement System (FERS), a three-tiered system consisting of Social Security benefits, basic FERS (a defined benefits plan), and the Thrift Savings Plan (a defined contributions plan). Appointees who are now Government employees, or who have prior Government service, may be covered under one of several plans, depending upon individual circumstances. Those plans include FERS, the Civil Service Retirement System (CSRS) without Social Security coverage, or a coordinated combination of CSRS with Social Security coverage, called CSRS Offset. See Appendix F for additional information about health benefits, life insurance, and retirement for new appointees.

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Separated Employees Health Insurance After separation, FEHB plan coverage continues at no cost to the employee for 31 days. In addition, if the employee files an election with the separating agency and pays both the employee and the Government share of costs (plus a 2 percent administration fee), coverage in the existing plan or another plan in the Program can be continued for up to 18 months under the temporary continuation of coverage (TCC) program feature. When group insurance eligibility ends, the employee has the right to convert the coverage to an individual health insurance policy. If an employee retires under a retirement system for Federal employees, group health insurance can be continued into retirement, provided the employee qualifies for an immediate annuity and was enrolled in the FEHB Program for the 5 years of service immediately preceding retirement, or – if less than 5 years – for all periods of eligibility since first opportunity to enroll. Eligible retirees have the same health plan choices and pay the same share of the costs for health insurance as active employees do. Consumer Driven Health Plan. Employees who join a high deductible health plan (HDHP) and have a Health Savings Account (HSA) have funds that are fully portable. As long as their money stays in a qualified account and is used for qualified medical expenses, as established by the Department of the Treasury, both the interest and any withdrawals are tax free. This is true even for employees who elect a health care option in the future that is not a Consumer Driven Health Plan or the equivalent. The money in an HSA may continue to accrue – or be used – for future medical expenses. However, employees who retire and enroll in Medicare are not eligible for health savings accounts, so if they have a High Deductible Health Plan, a new health reimbursement arrangement (HRA) will be established by their health plan. Monies in their HSA will remain in that account until used for qualified medical expenses.

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Life Insurance Life insurance continues for 31 days after separation at no cost. During this period, all or any part of the coverage can be converted, without medical examination, to non-group coverage, with rates based on the individual’s age and class of risk. If an employee retires under a retirement system for Federal employees, Basic and Optional group life insurance can be continued into retirement, provided the employee qualifies for an immediate annuity and had the coverage for at least the 5 years of service immediately before retirement, or during all periods the coverage was available, if that is less than 5 years. (The employee may convert any coverage that he or she is not eligible to continue into retirement.) Retirees pay the same premiums as active employees. The premiums for Basic insurance and Option A stop at age 65. At that time the face value of Option A insurance in effect at retirement begins to decrease by 2 percent per month. The post-retirement reduction continues until 75 percent of the coverage is gone and 25 percent ($2,500) remains. There is a similar 75 percent reduction for Basic insurance; at the time of retirement, however, an employee eligible to continue Basic insurance can elect to pay additional premiums to prevent Basic insurance from decreasing or to have a lesser (50 percent) reduction. At the time of retirement or becoming insured as a recipient of workers’ compensation, an employee may elect as many Option B and C multiples he or she wishes to continue into retirement and may choose whether to have all of those multiples reduce (i.e., Full Reduction) or to have none of them reduce (i.e., No Reduction) upon reaching age 65 (or retiring, if later.) If an employee chooses Full Reduction, premiums stop at age 65, and the coverage begins to reduce by 2 percent per month until it is gone. If an employee chooses No Reduction, the coverage does not reduce at age 65, and the individual continues to pay premiums. FSAFEDS Money in an FSAFEDS flexible spending account – either the health care flexible spending account or the dependent care flexible spending account – has to be used by the date the employee separates from the Government, or he or she will lose the unused balance. However, the claims do not have to be submitted by the separation date. When an employee incurs eligible expenses before the separation date, he or she can submit bills for services up to 30 days after the end of the year. Conversely, if an employee had more eligible expenses than money deducted from payroll, he or she will not have to reimburse the difference, and the balance will not be recovered against the employee. This could happen, for example, if the employee signed up for $3,000 and used it all up by the separation date. Because this amount ($3,000) is designated to be taken out of paychecks in equal amounts spread out over the course of the year, if the employee leaves before the end of the year, the missing payments can no longer be deducted from payroll, and he or she will not be required to otherwise make them up. Federal Long Term Care Insurance Program Long term care insurance coverage is fully portable, which means it continues without change when employees leave the Federal Government – the same product and the same price – as long as they continue to pay premiums. OPM is still the policyholder, and the coverage

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continues to be administered by Long Term Care Partners, LLC. If the employee is paying premiums through direct bill or automatic bank withdrawal, those arrangements continue unchanged. However, employees paying through payroll deduction should contact Long Term Care Partners directly so that they can switch their payment methods to direct bill or automatic bank withdrawal.

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Federal Employee Dental and Vision Insurance Program Coverage under the Federal Employee Dental and Vision Insurance Program (FEDVIP) terminates upon separation from Federal service, unless the employee is eligible for an immediate annuity. If an employee retires under a retirement system for Federal employees, FEDVIP coverage eligibility is retained. Retirees must have retired with an immediate annuity (a FERS Minimum Retirement Age plus 10 annuity, postponed, counts as an immediate annuity). Those in receipt of a deferred annuity are not eligible to enroll in FEDVIP. However, unlike FEHB coverage and FEGLI coverage, there is no length of time one must be enrolled in FEDVIP as an active employee in order to continue coverage after retirement. Retirement An employee under CSRS may retire voluntarily after reaching age 55 with 30 years of service, age 60 with 20 years, or age 62 with 5 years. Under FERS, voluntary retirement is available at the minimum retirement age (MRA, 55 to 57, depending on year of birth) with 30 years of service, age 60 with 20 years, or age 62 with five years. Under FERS, one can also retire on a reduced annuity at MRA with as little as 10 years of service. An employee may also be eligible for early retirement (discontinued service retirement (DSR)), based on an involuntary separation. Under both CSRS and FERS, one must be age 50 and have at least 20 years of service, or have at least 25 years of service regardless of age, in order to be eligible for discontinued service retirement. An involuntary separation is qualifying for DSR unless it is based upon misconduct or delinquency. A resignation may also qualify for DSR if the individual resigns in response to a written request from an administration representative having the authority to request such resignations or the new head of an agency. The resignation of a Presidentially-appointed policy- making officer qualifies for DSR whenever the individual’s resignation is accepted by the President (not limited to the advent of a new administration). When it is known that a Presidential appointee is leaving, the resignation of a noncareer SES appointee or Schedule C appointee who works for that person is also considered an involuntary separation for purposes of DSR. Individuals Not Eligible For Immediate Retirement. Such individuals might be eligible for a deferred annuity. Under both CSRS and FERS, if an individual has at least 5 years of civilian service, he or she can receive a deferred annuity at age 62. Also, a FERS employee with at least 10 years of Federal service (which must include at least 5 years of civilian service) may elect to receive a deferred annuity as early as the minimum retirement age (5 557, depending upon year of birth). To qualify for deferred benefits, individuals must leave their retirement contributions in the retirement fund. Individuals with less than 5 years of civilian service do not qualify for a deferred annuity.

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Refunds of Retirement Contributions. Those not eligible for an immediate annuity (whether or not eligible for a deferred annuity) may elect to receive a refund of retirement contributions. To qualify for the refund, the individual must be separated for at least 31 days and apply for the refund at least 31 days before qualifying for a deferred annuity. Under CSRS, the service covered by the refund may be creditable towards retirement benefits if the individual returns to Government service. However, under FERS, receipt of the refund permanently terminates the right to use the service covered by the refund for retirement benefits under any circumstances.

UNEMPLOYMENT COMPENSATION AND DISLOCATED WORKER SERVICES

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Unemployment Compensation for Federal Employees (UCFE) Presidential appointees, noncareer and limited SES appointees, and Schedule C employees who resign by request or are separated due to a change in agency leadership or as a result of the transition to a new Presidential administration may be eligible for Unemployment Compensation for Federal Employees (UCFE). Unemployment compensation is provided through the State in which the individual’s last official duty station is located. Benefit levels and eligibility requirements vary from State to State. For further information about UCFE requirements and benefits, contact the specific State Workforce Agency listed at http://www.servicelocator.org/OWSLinks.asp. Whether an individual’s resignation is requested or not requested may affect entitlement to unemployment compensation. Resigning before receiving a request to resign is generally considered an unprompted resignation and is not usually viewed as sufficient for unemployment compensation purposes. To assure that State Workforce Agencies are aware that the separation by request is due to a change in Presidential administrations or agency leadership, it is important that this reason be clearly indicated on the SF-50. Individuals are advised to provide a copy of the request for resignation to the State Workforce Agency when filing.

Dislocated Worker Services These employees may also be eligible for dislocated worker services, including retraining and placement assistance, which are funded through Department of Labor grants. Benefits and eligibility requirements vary from State to State. For more information about dislocated workers, visit http://www.dol.gov/dol/topic/training/dislocatedmworkers.ht.

V. PERSONAL IDENTITY VERIFICATION This section provides guidance on the requirements for ensuring individuals working on Presidential transition teams have appropriate personal Government-issued identity badges.

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Overview The President’s Homeland Security Policy Directive # 12 (HSPD-12) established a mandatory, Governmentwide standard for secure and reliable forms of identification to gain access to Federally-controlled facilities and information systems. Under this directive and implementing guidance by the National Institute of Standards and Technology (FIPS-201-1) and the Office of Management and Budget (OMB Memorandum M-05-25, August 2005), personal identity verification (PIV) cards are to be issued. Agencies are to apply an adjudicative policy for PIV cards under a framework jointly established by the U.S. Office of Personnel Management (OPM) and the National Security Council and issued by OPM on December 18, 2007. Under the credentialing standards, a PIV card may not be issued to a person if—

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The individual is known to be or reasonably suspected of being a terrorist; The employer is unable to verify the individual’s claimed identity; There is a reasonable basis to believe the individual has submitted fraudulent information concerning his or her identity; There is a reasonable basis to believe the individual will attempt to gain unauthorized access to classified documents, information protected by the Privacy Act, information that is proprietary in nature, or other sensitive or protected information; There is a reasonable basis to believe the individual will use an identity credential outside the workplace unlawfully or inappropriately; or There is a reasonable basis to believe the individual will use Federally-controlled information systems unlawfully, make unauthorized modifications to such systems, corrupt or destroy such systems, or engage in inappropriate uses of such systems. In addition, an individual may not be granted a PIV card if found to be ineligible for access to classified information under Executive Order 12968. That is, for those positions that require security clearances, if the individual is unable to obtain a required security clearance, he or she will not be granted a PIV card.

Transition Issues Transition Team Members Members of transition teams needing long-term access (more than 6 months) to Federally- controlled facilities or information systems will need identification badges (PIV cards). Others needing access but not on a long-term basis can gain access under the particular agency’s own procedures. Agencies needing expedited investigative services for members of transition teams requiring PIV cards can request such service from OPM. Members of transition teams who are detailed from Federal agencies to a transition team not within their agency will need to ensure their PIV cards are acceptable at the detail site.

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VI. APPENDICES APPENDIX A: QUESTIONS AND ANSWERS:SEPARATIONS FOR POLITICAL APPOINTEES General Issues 1. Can I be separated before the resignation date of my agency head, and how much notice will I receive? Yes. If you are a noncareer SES appointee, you may be removed at any time. Noncareer SES appointees must be given a written notice at least 1 day before the effective date of a removal. If you are a Schedule C employee, you may be separated whenever your confidential relationship with your superior or the confidential nature of your job ends. There is no statutory notice requirement. However, some agencies have elected to provide Schedule C employees with advance notice of their separations. Your Human Resources Office can advise you of your agency’s policy on notice procedures.

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2.Do I have appeal or grievance rights? There is no appeal right to the Merit Systems Protection Board (MSPB) on the removal of a noncareer SES appointee. Most employees separated from their Schedule C positions have no appeal rights to MSPB. In some agencies, noncareer SES appointees and Schedule C employees may grieve their separations under an agency administrative grievance system or another agency dispute resolution system. Your Human Resources Office can advise you if your agency permits such grievances. 3. Do I have additional procedural and/or appeal rights if I am a veteran? An employee’s status as a veteran does not change an employee's rights beyond those described in the answers to Questions 1 and 2 above. 4. If my boss has a statutory term appointment that extends beyond the resignation date of my agency head, do I have to leave before the resignation date? Not necessarily. This, too, will be up to your agency. 5. If my boss is asked to stay beyond the agency head’s resignation date, will I be allowed to remain in my position also? Your continued employment may depend on whether both your confidential relationship with your boss and the need for such a relationship to do your job continue to exist. 6. Can my agency provide outplacement assistance? If your agency offers outplacement services to all agency employees, noncareer SES appointees and Schedule C employees may use them. The Comptroller General has concluded an agency may not provide outplacement assistance to political appointees unless it generally offers these services to all its employees. The CG decision says, “... an agency may not expend public money for the specific purpose of helping political appointees return to private

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life. ... although an agency may offer its existing outplacement assistance program to political appointees, it may not provide outplacement services exclusively to appointees of the outgoing Administration.” [B25 1488, Letter to The Honorable William L. Clay, Chairman, Committee on Post Office and Civil Service, House of Representatives, December 23, 1992.]. 7. Can my agency pay my travel and transportation expenses when I leave Government service? The Government is not authorized to pay relocation expenses for separating Presidential appointees, noncareer SES appointees, or Schedule C appointees to return to private industry or to their place of residence. See the General Services Administration’s website for additional information about travel and transportation allowances, in particular those for departing political appointees. (http://www.gsa.gov/travelpolicy)

Benefits

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8. What happens to my accrued annual and sick leave? When your Federal employment ends, you will receive a lump-sum payment for any unused annual leave. The lump-sum payment equals the pay you would have received if you had remained in Federal service on annual leave (as provided in OPM regulations). This payment excludes any allowances that are paid for the sole purpose of encouraging an employee to remain in Government service, such as retention allowances and physicians comparability allowances. No payment is made for accrued sick leave. Generally, sick leave will be recredited if you are reemployed in a Federal position. 9. Will I be eligible for severance pay? No. Employees serving under noncareer SES or Schedule C appointments are not eligible for severance pay. 10. If I am separated, will I be eligible for unemployment compensation? The U.S. Department of Labor advises that Presidential appointees, noncareer and limited SES appointees, and Schedule C employees are generally eligible for benefits under the Unemployment Compensation for Federal Employees (UCFE) program because their separation from Federal service is viewed as being involuntary (i.e., occurring through no fault of their own). To ensure State unemployment compensation offices are aware your separation is due to a change in agency leadership, it is important that this reason be clearly indicated on the SF-50 (Notification of Personnel Action) and all UCFE claims inquiry forms. Agencies are encouraged to use reasons such as “separation due to change in agency leadership” or “separation due to transition to new Presidential administration.” 11. If I resign, will I be eligible for unemployment compensation? If you resign by request due to a change in Presidential administrations or agency leadership, you may be eligible, provided you meet all other eligibility requirements. If you resign before being requested to do so, you may not be eligible. To assure State Workforce Agencies are aware your resignation is by request due to a change in Presidential administrations or agency leadership, it is important that this be clearly stated in your written

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resignation. Your agency should also indicate the same on the SF-50 and all UCFE claims inquiry forms. Again, you should check with your State Workforce Agency if you have any questions.

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12. What will my SF-50 say if I resign or if I am separated? If you resign from your position due to a change in agency leadership or as a result of a transition to a new Presidential administration, the “Remarks” section of your SF-50 (Block 45) will state “Reason for Resignation” and then summarize whatever reason you give in your written resignation. You should state as your reason for resignation, “Resignation due to a change in Presidential administrations” or “Resignation due to a change in agency leadership.” If your resignation is requested, you should state, “Resignation due to a change in Presidential administrations” or “Resignation by request due to a change in agency leadership.” If you are separated, your agency will state in Block 45 under the “Reason for Termination” that you were separated “due to a change in Presidential administrations” or “due to a change in agency leadership.” (Note: The reason given for resignation may affect your eligibility for unemployment benefits. Resigning before receiving a request to resign is generally considered an unprompted resignation and is not usually viewed as sufficient for unemployment compensation purposes. See also Questions 10, 11, and 13.) 13. How do I apply for unemployment compensation? States act as agents of the Department of Labor in the taking, processing, and payment of UCFE benefits. Therefore, all applications must be filed with a State Workforce Agency in the State of the employee’s last official duty station. Employees returning from overseas can file in the State of residence after the most recent period of employment. Most States accept UCFE applications by telephone or through the Internet, so you may not have to report in person to file a claim. To locate unemployment benefit information in the State of your choosing, visit http://www.servicelocator.org/OWSLinks.asp. When you file a claim with the appropriate State agency, you may be asked to provide a copy of your Standard Form (SF) 8 (Notice to Federal Employee about Unemployment Insurance), a copy of your SF-50, and/or copies of your leave and earnings statement. Unemployment benefits are payable under State unemployment insurance laws. To receive these benefits, you usually must register with the local unemployment office in the State of your last duty station. Employees returning from overseas file in the State of residence. When you file a claim with the State Workforce Agency, you must provide a completed copy of Standard Form SF-8, Notice to Federal Employee about Unemployment Insurance, and proof of your Federal employment earnings (an earnings and leave statement). If you have moved out of the State of your last duty station, you can file your claim with the State office nearest to your new residence. If you resigned by request, you may need to provide a copy of the request when filing. Your agency’s Human Resources Office will provide you with a copy of form SF-8 and answer any questions you may have in this area. 14. Can I keep my Federal employee health insurance coverage when I leave? After separation, your group health insurance continues at no cost for 31 days. In addition, if you file an election with the separating agency and you pay both the employee and employer cost (plus 2 percent administrative cost), your current plan, or another Federal

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Employees Health Benefits plan you may choose, can be continued temporarily for 18 months. When the group coverage ends, you have a right to convert it to non-group coverage. If you retire under a retirement system for Federal employees, you can continue your group health insurance into retirement, provided you qualify for an immediate annuity and you were enrolled for the 5 years of service immediately before retirement, or – if less than 5 years – for all service since your first opportunity to enroll. As a retiree, you would pay the same contribution for health insurance as active employees do.

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15. Can I keep my Federal employee life insurance coverage when I leave? Life insurance continues for 31 days after separation at no cost, and the insurance can be converted, without medical examination, to non-group coverage at that time, with rates based on age and class of risk. If you retire under a retirement system for Federal employees, your group life insurance (but not accidental death and dismemberment) can be continued into retirement, provided you qualify for an immediate annuity and you were enrolled for purposes of each type of coverage for at least the 5 years before retirement, or since the first opportunity to enroll. As a retiree, you would pay the same premiums as employees, except that premiums stop at age 65, when the amount of insurance begins to decrease by 2 percent per month. The post-retirement reduction continues until the Basic and the $10,000 Optional coverage is 25 percent of insurance in force at retirement and until other optional insurance expires completely. At the time of retirement, you can also elect to pay additional premiums to prevent the Basic and Optional insurance B and C from decreasing. 16. Can I keep my Federal long term care insurance coverage when I leave? Long term care insurance coverage is fully portable, which means it continues without change when employees leave the Federal Government – the same product and the same price – as long as premiums continue to be paid. OPM is still the policyholder and the coverage continues to be administered by Long Term Care Partners, LLC. If the employee is paying premiums through direct bill or automatic bank withdrawal, those arrangements continue unchanged. However, employees paying through payroll deduction should contact Long Term Care Partners directly so that they can switch their payment methods to direct bill or automatic bank withdrawal. 17. Can I keep my Federal dental and/or vision insurance coverage when I leave? After separation, FEDVIP coverage terminates unless you are eligible for an immediate annuity. If an employee retires under a retirement system for Federal employees, FEDVIP coverage eligibility is retained. Retirees must have retired with an immediate annuity (a FERS Minimum Retirement Age plus 10 annuity, postponed, counts as an immediate annuity). Those in receipt of a deferred annuity are not eligible to enroll in FEDVIP. However, unlike FEHB coverage and FEGLI coverage, there is no length of time you must be enrolled in FEDVIP as an active employee in order to continue coverage after retirement. 18. What are the basic age and service rules for retirement? Under the Civil Service Retirement System (CSRS), you can retire voluntarily after reaching age 55 with 30 years of service, age 60 with 20 years, or age 62 with 5 years. Under Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

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the Federal Employees’ Retirement System (FERS), voluntary retirement is available at minimum retirement age (MRA, 55 to 57, depending on year of birth) with 30 years of service, age 60 with 20 years, or age 62 with 5 years. Individuals under FERS can also retire on a reduced annuity at MRA with as little as 10 years of service. 19. How do I know if I am eligible for early retirement? You would be eligible for early retirement if you qualify for a discontinued service retirement (DSR) based on an involuntary separation (see next question) and meet the following age and service requirements. Under both CSRS and FERS, you must be age 50 and have at least 20 years of service, or you may retire at any age if you have at least 25 years of service.

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20. What is considered an involuntary separation for purposes of qualifying for discontinued service retirement? Generally, a separation is qualifying for DSR if it is an agency-initiated action that is not a removal for cause on charges of misconduct or delinquency. A resignation qualifies you for DSR if you resign in response to a written request from an administration representative having the authority to request such resignation or the new agency head. The resignation of a Presidentially-appointed policy-making officer qualifies for DSR whenever the individual’s resignation is accepted by the President. When it is known that a Presidential appointee is leaving, the resignation of a noncareer SES or Schedule C appointee who works for that person is also considered an involuntary separation for purposes of DSR. 21. What if I am not yet eligible for retirement? You might be eligible for a deferred annuity. Under both CSRS and FERS, if you have at least 5 years of civilian service, you can receive a deferred annuity at age 62. Also, a FERS employee with at least 10 years of Federal service (which must include at least 5 years civilian service) may elect to receive a deferred annuity as early as the minimum retirement age (see Question 18). To qualify for deferred benefits, you must leave your retirement contributions in the retirement fund. If you have less than 5 years of civilian service, you do not qualify for a deferred annuity. Whether or not you qualify for a deferred benefit, you may elect to receive a refund of your contributions as long as you are not eligible for an immediate annuity. To qualify for the refund, you must be separated for at least 31 days and apply for the refund at least 31 days before you qualify for a deferred annuity. Generally, interest is payable on FERS refunds, but no interest is payable on CSRS refunds. Desirability of the refund depends on individual circumstances (how far from or close to retirement you are and whether you anticipate future Federal employment). Under CSRS rules, you can reinstate credit for the service if you return to Federal service under CSRS or FERS, and redeposit the refund with interest. However, you cannot repay a refund of FERS deductions if you return to Federal service. In addition, the service will not count toward retirement. 22. With regard to my benefits, is there anything else I need to watch out for? Your agency Human Resources Office needs to get involved to look at your particular circumstances. For example, you may need to make a deposit for military service before you Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

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leave the agency. Your Human Resources Office will be able to give you more specific answers to your particular questions.

Thrift Savings Plan (TSP) 23. What are my TSP withdrawal options after I leave Federal service? The TSP provides several ways to withdraw your account. You can make a partial withdrawal of your account in a single payment. You can make a full withdrawal of your account by any one, or any combination, of the following methods: A single payment A series of monthly payments A life annuity.

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A combination of any of the above three full withdrawal options is called a “mixed withdrawal.” You can have the TSP transfer all or part of any single payment or, in some cases, a series of monthly payments, to a traditional Individual Retirement Arrangement (IRA) or eligible employer plan. Payments to you can be deposited directly into your checking or savings account by means of electronic funds transfer (EFT). 24. Can I leave my money in my account, and can I add to this money after I leave Federal service? You can leave the money in your account. You cannot make direct deposits. However, under certain circumstances, you can make transfers (or rollovers) of eligible distributions from an eligible retirement plan, including a traditional IRA and an eligible employer plan (or its designated financial institution). Only TSP participants who have open accounts can transfer money into the TSP. This includes participants who are separated from Federal civilian service. However, a separated participant who is receiving monthly payments from his or her TSP account cannot transfer money into it. Your account will continue to accrue earnings, and you can continue to move your money among the TSP investment funds by making interfund transfers. Caution: You must receive your account in a single payment or begin receiving monthly payments from the Thrift Savings Plan, or from the annuity vendor, by April 1 of the year following the year you turn 70 1/2. 25. If I leave Federal service, can I have the TSP transfer my payment to an Individual Retirement Arrangement (IRA) or other eligible retirement plan? Yes, you can have the TSP transfer all or part of a single payment to an IRA or other eligible retirement plan. You also can transfer certain monthly payments. 26. Where can I find tax information about TSP disbursements? For detailed information about withdrawing your account, see the booklet, Withdrawing Your TSP Account after Leaving Federal Service. For detailed information about the tax consequences of your withdrawal choices and Federal income tax withholding requirements, see the TSP tax notice, “Important Tax Information about Payments from your TSP

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Account.” The booklet and notice are available from the TSP Web site (www.tsp.gov). Also, your agency Human Resources Office must give you this information when you leave Federal service. You should also ask your State and local tax authorities about State and local taxes. 27. Will I keep the FERS Agency Automatic (1 percent) Contributions to TSP when I leave? If you meet the TSP vesting requirements when you leave Federal service, you are entitled to the Agency Automatic (1%) Contributions in your account and their earnings. Most FERS employees become vested in their Agency Automatic (1%) Contributions after completing 3 years of Federal (generally civilian) service. However, employees who are in one of the following positions at separation are vested after 2 years of civilian service. A noncareer SES appointee. Executive Schedule positions listed in 5 U.S.C. 5312, 5313, 5314, 5315, or 5316. A position placed in level IV or level V of the Executive Schedule, under 5 U.S.C. 5317. A position in the executive branch that is excepted from the competitive service by the Office of Personnel Management because of the confidential and policy-determining character of the position (i.e., a Schedule C position). A Member of Congress or a Congressional employee.

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28. How soon can employees start participating in the Thrift Plan? If you are a new FERS employee or rehired FERS or CSRS employee, you may begin contributing to the TSP immediately.

Social Security 29. Does my Federal employment have an impact on my Social Security benefits? Yes, it could affect your benefits. If you have ever worked under the Civil Service Retirement System (CSRS) or another retirement plan for Federal employees that doesn't include Social Security, such as the Foreign Service Retirement System, and you receive an annuity based on that service, these two provisions of the Social Security law may affect your Social Security benefits: The Windfall Elimination Provision (WEP) may reduce the benefit you earned based on your work. The WEP doesn't apply if you were automatically covered by the Federal Employees’ Retirement System (FERS), or if you have 30 or more years of “substantial earnings” in Social Security-covered employment. The Government Pension Offset (GPO) may reduce or eliminate any spousal benefit you are otherwise eligible to receive. The GPO doesn't apply if you were required by law to have coverage under the CSRS Offset provisions that are a combination of CSRS coverage and Social Security, or if you were automatically covered by FERS without electing coverage. The Social Security Administration now sends an annual Social Security Statement to everyone who has paid Social Security taxes. The benefit estimates contained in the Statement are not adjusted to consider the WEP or GPO. Your agency’s benefits officer can help you determine whether either of these provisions will affect your benefits. The Social Security Administration also has fact sheets: The Windfall Elimination Provision (Publication No. 05-

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10045) and Government Pension Offset (Publication No. 05-10007), that can be printed from www.ssa.gov or ordered by calling 1-800-772-1213. The Social Security website, http://www.ssa.gov/planners/calculators.htm, also provides a detailed calculator. If you enter your earnings history (found on your Social Security Statement) and specific information about your non-covered pension, the detailed calculator can refigure your benefit, including the adjustment for the WEP.

Post-Separation Employment

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30. Are there restrictions on my seeking non-Federal employment while I am currently employed? Will I have any post-employment restrictions? Yes, there are a number of restrictions. However, because of the complexity of the issues involved, you should address any questions to your agency’s Designated Agency Ethics Official or to the Office of Government Ethics. 31. May I compete for other Federal jobs in my agency or in other Federal agencies? You may compete for any Federal career jobs that are open for applications from the general public. This would include jobs announced through OPM and jobs announced by agencies when the announcement specifies applications will be accepted from all sources. However, many agency jobs are open only to current career employees or status candidates. You could not apply for those positions unless you had previous Federal career service and the announcements were open to reinstatement or status candidates. Some non-political jobs are filled in what is called the excepted service. These jobs are excepted from the specific appointment procedures required for competitive career jobs although they are subject to the basic principle of selection based on merit. Agencies may establish their own procedures and qualification requirements for filling certain excepted service positions. If you qualify for such a position, you will be considered in accordance with the agency’s procedures. You may compete for an SES career appointment when the position is advertised under proper merit staffing procedures. However, if you are a noncareer SES appointee, you cannot receive a career SES appointment in your current position, or a successor position, since there is no bona fide vacancy. 32. Where and how can I find current job openings and other information on applying for other Federal jobs? OPM’s Federal Employment Information System, the official source for employment information, provides access not only to Federal job listings, but some State and local government and private sector listings. The system provides listings of the latest job openings, gives access to application materials, and provides information on a wide variety of Federal employment-related topics and programs. You can request application packages, forms, and other employment-related materials through the system. The system is accessible from a number of user-friendly media that are updated daily and most are available 24 hours a day, 7 days a week.

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USAJOBS. OPM provides access to employment information through USAJOBS, the official job site of the United States Federal Government. USAJOBS can be accessed through the Internet at www.usajobs.opm.gov. USAJOBS enables job seekers to use a single system to locate all public positions in the Federal Government and use a single resumé to apply for positions across the Government.

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USAJOBS Interactive Voice Response System. By calling (703) 724-1850 or TDD (978) 461-8404, job seekers can obtain current worldwide Federal job opportunities, Employment Information Fact Sheets, and Optional Federal Application Forms. 33. What are my reinstatement rights if I previously worked for the Federal Government in a career (competitive) position? You do not have a right (i.e., an entitlement) to be reinstated to a career job. However, if you are eligible for veterans’ preference, if you had career tenure, or if you have not had a break in Federal service of more than 3 years since you left your competitive job, you do have reinstatement eligibility in the competitive service. This means you may apply for jobs open only to status candidates and do not have to compete for employment with candidates from outside the Government. However, agencies do not have to consider reinstatement candidates for any particular job. If you are considered for reinstatement, you will have to compete with other employees and status candidates for any job that is at a higher grade than you held under your last competitive service appointment. If the job is at the same grade as your last competitive career job, the agency may reinstate you without competition, but that would be subject to the agency’s internal merit staffing policy. The agency could require you to compete with employees and status candidates at any grade. You may be reinstated in the SES if you previously successfully completed the 1-year SES probationary period as a career appointee, or if you converted to a career SES appointment when the SES was established in 1979. However, separation from the SES career appointment must not have been for performance or disciplinary reasons. 34. If I am reemployed in the Federal Government, must the agency match my current salary and grade? An agency is not required to match your salary and grade. However, if you are reemployed in a General Schedule (GS) position, an agency may, if its internal rules permit, set your basic pay based on the highest previous rate you received in the Federal Government, but not above the highest rate for the grade of the new position. 35. If I retire, can I later return to Federal service? Yes. However, depending on the type of annuity you receive, your annuity will terminate or your salary as a reemployed annuitant will be reduced by the amount of the annuity, unless you return to work for the Department of Defense. If you received a lump-sum payment for unused annual leave and are reemployed in the Federal service before the end of the annual leave period covered by the lump-sum payment, you must refund that portion of the lumpsum payment. The refunded portion covers the period between the date of reemployment and the expiration of the lump-sum leave period. Your employing agency will recredit to you an

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amount of annual leave that is equal to the days or hours of work remaining between the date of reemployment and the expiration of the lump-sum leave period.

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APPENDIX B

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APPENDIX C Sample Separation Notice Notice of Removal to an Employee who does not have a property right to the job under law or regulation, e.g., Noncareer SES Appointee, Schedule C without status in the position. Mr. C. B. Blank 4731 99th Avenue Washington, D.C. 20xxx Dear Mr. Blank: This is to notify you that your service as (insert position title) will be terminated effective at the close of business, (insert date) . Under the law, the incoming administration has the authority to select staff in whom it has personal confidence to carry out its policy goals. This often necessitates the replacement of existing personnel. As a result, this action should not be construed in any way as a reflection on you personally or on your performance under the previous administration. Sincerely yours,

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(Insert Name) (Insert Title)

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APPENDIX E: QUESTIONS AND ANSWERS: SENIOR EXECUTIVE SERVICE This appendix provides technical guidance, in the form of questions and answers, on transition to a new Presidential term or Presidential administration as it may affect the Senior Executive Service (SES). This material supplements the information in other parts of the transition guidance. The questions and answers are organized as follows: Career Appointments Reassignments and Details of Career Appointees Career Appointees Who Accept Appointment Outside the SES Noncareer and Limited Appointments Pay and Other Compensation Leave Performance Appraisals Awards Removals and Other Separations Experts and Consultants Miscellaneous

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Career Appointments 1. Are there any special procedures that agencies must follow in making career appointments during the transition? As with staffing actions at any time, appointments must meet all civil service laws, rules, and regulations and be free of any impropriety. Agencies should also refer to OPM Director Springer’s memorandum of March 17, 2008, to agency heads concerning limitations on appointments and awards during the election period (Appendix B). (See also Question 27.) All initial career appointments to the SES must be made under SES merit staffing procedures, and the executive qualifications of the selected candidate must be approved by an OPMadministered Qualifications Review Board (QRB) before appointment can occur. Since the SES is separate from the competitive and excepted services, there is no provision for noncompetitive movement from the other services to a career SES appointment. [5 U.S. C. 3393; 5 CFR part 317, subpart E.] 2. Does a transition affect the processing of actions by a Qualifications Review Board? OPM may suspend processing of an agency’s SES QRB cases when the agency’s head departs or announces his or her departure. This is done to ensure that the incoming head of that agency will have the full opportunity to exercise his or her prerogative to make or approve executive resource decisions that will impact the agency’s performance during his or her tenure. To that end, OPM will impose a moratorium on the processing of a particular agency’s SES QRB cases when the head of that agency departs for any reason, effective immediately upon the date of his or her departure. A QRB moratorium will also be imposed

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when the head of an agency announces his or her intention to leave that office, effective immediately upon that announcement. While a QRB moratorium is intended to preserve the prerogatives of an incoming agency head, this must be balanced against the need to ensure the continuity of agency operations during such transitions. Accordingly, OPM will consider requests for exceptions to an agency’s QRB moratorium on a case-by-case basis. Requests for exceptions should be signed by the agency head or the official who is designated to act in the agency head’s absence and must specifically address the potential for adverse impact on national security, homeland security, or critical agency mission, program, or function if a particular SES candidate is not immediately certified. [5 CFR 317.502 (d)] 3. Do individuals who formerly held career SES appointments need to compete and be approved by a QRB to get a new career SES appointment? If the individual successfully completed the SES probationary period or did not have to serve one (e.g., converted to the SES as a career appointee when the SES was established in 1979), the individual may be noncompetitively reinstated in the SES. However, separation from the SES must not have been for performance or disciplinary reasons. There is no time limit on reinstatement eligibility after leaving the SES. [5 U.S.C. 3593; 5 CFR part 317, subpart G]

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Reassignments and Details of Career Appointees 4. What authority does an agency head have to reassign career SES appointees? Career SES appointees may be reassigned to any SES position in the agency for which they are qualified without OPM approval. One of the basic premises of the SES was to enable an agency head to reassign senior executives to best accomplish the agency’s mission. However, there are a number of restrictions in the law to protect career executives from arbitrary or capricious actions, as indicated in the following questions (5 - 14). [5 U.S.C. 3395; 5 CFR 317.901] 5. What advance notice requirements apply to the reassignment of career SES appointees? The appointee must be given a 15-day advance written notice if the reassignment is within the same commuting area and a 60-day advance written notice if the reassignment is between commuting areas. The agency must consult with the appointee before providing a 60-day advance notice for a geographic reassignment, and the advance notice must include the reasons for the action. [5 U.S.C. 3395 (a) (2); 5 CFR 317.901(b)] 6. If a career SES appointee is reassigned to an SES position where the individual will have a policy-making role, is it necessary for the appointee to give up his or her career status? No. A career SES appointee may be reassigned to any SES position and retain career status. If a career appointee elects to accept a noncareer or limited appointment, the voluntary nature of the action must be documented in writing before the effective date of the action, and

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a copy of the documentation must be maintained as a permanent record in the individual’s Official Personnel Folder. [5 CFR 317.904]

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7. What protections do career SES appointees have against involuntary reassignment? A career SES appointee cannot be involuntarily reassigned within 120 days after the appointment of a new agency head or the appointment of a new noncareer supervisor who has authority to make the initial performance appraisal of the career appointee. The 120-day moratorium is a protection built into the law to prevent peremptory reassignments before the capabilities of the career appointee are known. This restriction does not apply to a reassignment action taken as a result of an unsatisfactory performance rating, if the rating was given before the appointment of the new agency head or noncareer supervisor. However, if an unsatisfactory rating is given during a moratorium, the resulting reassignment cannot be effected until the moratorium ends. (See Question 26 concerning the moratorium on appraisal and rating of a career appointee’s performance within 120 days after the beginning of a new President’s term of office.) [5 U.S.C. 3395(e), 5 CFR 317.901] 8. How is the advance notice requirement affected by the moratorium? The 120-day moratorium does not interrupt or affect the progress of a 15- or 60-day advance notice; however, it can prevent the agency from taking action immediately upon expiration of the advance notice period, depending upon when the advance notice was issued. If an advance notice is issued after the 120-day moratorium begins, the reassignment may not be effected until after the moratorium ends. If an advance notice is issued before the 120-day moratorium starts, the reassignment may be effected when the advance notice period ends even if the moratorium is still in effect. It is not appropriate for a proposed agency head or noncareer supervisor to have someone else issue a reassignment notice before the 120-day moratorium starts to avoid application of a moratorium. The action must be initiated independent of the incoming agency head or noncareer supervisor. [5 U.S.C. 3395(e), 5 CFR 317.901] 9. Who is covered by a moratorium initiated by the appointment of a noncareer supervisor? A moratorium on involuntary reassignments initiated by the appointment of a noncareer supervisor applies only to those career appointees for whom the noncareer supervisor gives the initial performance appraisal. It does not apply to those career appointees for whom the new noncareer appointee serves as the higher level supervisor and functions as a reviewing official or final rater. While this moratorium precludes involuntarily reassigning specific career appointees, it does not otherwise restrict a new noncareer appointee’s delegated authority to reassign other career appointees to whom no moratorium applies. [5 U.S.C. 3395(e), 5 CFR 317.901(c)] 10. Who is considered a “noncareer appointee” for purposes of initiating the moratorium on involuntary reassignments? A noncareer appointee includes an SES noncareer or limited appointee, a Schedule C appointee, or an appointee in an Executive Schedule or equivalent position that is not required to be filled competitively. [5 CFR 317.901(c)]

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11. Can an agency head take an involuntary reassignment action instead of a noncareer supervisor? If a moratorium is initiated by the appointment of a noncareer appointee, the agency head may not involuntarily reassign a career appointee to whom the moratorium applies (as defined in Question 9), even if the agency head has been in office more than 120 days. [5 U.S.C. 3395(e), 5 CFR 317.901(c)] 12. Is a moratorium on involuntary reassignments initiated when an “acting” agency head or noncareer supervisor is named? No; the designation of an “acting” agency head or noncareer supervisor (e.g., by a detail or when a deputy acts in the position) is not considered an appointment. Therefore, the statutory moratorium technically does not apply. However, the agency, at its discretion, may apply the moratorium in such situations. In this case, if the “acting” individual is later permanently appointed to the position without a break in service, time spent under the agency-imposed moratorium counts toward the 120-day moratorium initiated by the permanent appointment. [5 CFR 31 7.901 (c) (5)]

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13. May career SES appointees be reassigned voluntarily before the 15- or 60-day advance notice period and/or the 120-day moratorium on involuntary reassignments has ended? Yes. However, the career appointee must agree in writing to the reassignment. The agreement is retained as a temporary record in the appointee’s Official Personnel Folder. [5 CFR 31 7.901 (c) (3)] 14. May career SES appointees be detailed during the 120-day moratorium on involuntary reassignments? Yes. If a career appointee is detailed during the moratorium, the first 60 days of the detail (or any combination of details) do not count against the 120 days. For example, if the employee is placed on a 90-day detail, the first 60 days would be added to the 120 days, and the moratorium would last 180 days. Although there is no limit on the total length of a detail during the moratorium, any detail during the period must meet the detail requirements in the regulations and should be made judiciously and only when there is a clear, bona-fide need. [5 U.S. C. 3395(e), 5 CFR 317.901 (c) (4) and 317.903] 15. Does the moratorium on involuntary reassignments apply to a realignment or position abolishment? No; the 120-day restriction does not apply to a realignment, which is the movement of an employee and the employee’s position when a transfer of function or an organization change occurs within the same agency and there is not a change in the employee’s position. The 120-day restriction does not preclude the abolishment of a position during the moratorium. For example, a position could be abolished, and the incumbent could elect immediate discontinued service retirement or agree to an immediate voluntary reassignment. However, the incumbent could not be involuntarily reassigned until the 120 days have elapsed. [See 5 CFR 317.901(a) for definition of reassignment]

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Career Appointees Who Accept Appointment outside the SES 16. What benefits may career SES appointees retain if they accept Presidential appointments or certain other appointments to positions paid equivalent to Executive Level V or higher? The following provisions apply to a career SES appointee who is appointed by the President, subject to Senate confirmation (PAS), to a civilian position in the executive branch which is not in the SES, and for which the rate of basic pay is equal to or greater than the rate payable for level V of the Executive Schedule. The same provisions apply to a career appointee who is appointed (by the President or other appointing authority) to a civilian position in the executive branch which is not in the SES and which either is covered by the Executive Schedule or has a rate of basic pay fixed by statute at a rate equal to one of the levels of the Executive Schedule. If the appointment is made without a break in service, the individual may elect to retain any or all of the following SES benefits: SES basic pay; eligibility for performance and rank awards; severance pay; annual and sick leave; and retirement. The individual retains his or her current retirement coverage. However, if the position to which the individual is appointed is an Executive Level position listed in 5 U.S.C. 5312-5317, the individual is subject to mandatory Social Security coverage. An individual under CSRS would then be covered under CSRS Offset. If the individual elects to retain severance pay coverage, the individual is entitled to severance pay if involuntarily separated from the Presidential appointment and if otherwise eligible, even if the individual is entitled to reinstatement in the SES (see Question 17). A resignation is considered an involuntary separation for severance pay purposes if the SES member resigns after receiving a written resignation request or notice of separation from the President or an authorized representative. A self-initiated resignation does not qualify for severance pay. (See Question 27 for information about restrictions on granting awards to Presidential appointees who were SES career appointees and retained awards eligibility. [5 U.S. C. 3392(c); 5 CFR part 317, subpart H]) 17. What are the reinstatement rights of a former post-probationary career SES appointee who took a Presidential appointment? A former post-probationary career SES member who received a Presidential appointment without a break in service from the career SES appointment is entitled to reinstatement to the SES. (This applies regardless of the pay rate of the position held as a Presidential appointee.) The individual must have left the Presidential appointment for reasons other than misconduct, neglect of duty, or malfeasance. OPM will provide placement assistance (and direct placement if necessary) if the individual applies to OPM within 90 days after separation. The individual also may negotiate his or her own reinstatement without OPM assistance. Note that a post- probationary former career SES appointee who can elect to retain certain SES benefits under 5 U.S.C. 3392(c) (see Question 16) but is not a Presidential appointee is eligible for, but not entitled to, reinstatement to the SES. [5 U.S. C. 3593(b); 5 CFR part 317, subpart G] If the individual elected to continue SES pay while serving in the Presidential appointment (see Question 16), the appointee’s pay rate does not change on reinstatement unless 12 months have elapsed since his or her last pay adjustment, except as allowed under

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OPM regulations. If 12 months have elapsed, the appointee’s pay may be increased. Any adjustments in the individual’s pay will be subject to the normal SES pay rules. If the individual did not elect to continue SES pay and is later reinstated in the SES, the agency may set his or her pay at a rate within the SES pay range, subject to the requirements in OPM regulations. [5 CFR part 534] If eligible, the individual may apply for discontinued service retirement (DSR) when the Presidential appointment is terminated, instead of reinstatement in the SES, whether or not the individual has received a job offer in the SES. OPM considers the resignation of a Presidential appointee to be an involuntary separation for DSR purposes whenever it is submitted and accepted. [CSRS and FERS Handbook for Personnel and Payroll Offices, Chapter 44 – see http://www.opm.gov/retire/asd/htm/HOD.htm] 18. Can SES appointees be reinstated to the competitive service? Yes, if they held a competitive service appointment before their SES appointment and meet certain other conditions. Career SES appointees who are eligible for reinstatement in the competitive service may be appointed to any competitive service position for which they qualify, at any grade or salary level, including senior-level positions. We advise appointees interested in reinstatement to the competitive service to consult with their agency’s Human Resources Office to verify their reinstatement eligibility. [5 CFR 315.401 and 335.1 03 (c) (3) (vii)]

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Noncareer and Limited Appointments 19. Are there any restrictions on making noncareer or limited SES appointments? Yes; the agency must receive a noncareer appointment authority from OPM before making the appointment. When the individual leaves the position, the appointment authority reverts to OPM. The agency must get a new authority from OPM before making another noncareer appointment to the position. (Note that an agency must obtain OPM approval for an appointment authority to reassign a noncareer appointee to another SES position or to transfer a noncareer appointee from another agency.) The agency approves the qualifications of the appointee, and the appointment is made noncompetitively. The White House Office of Presidential Personnel must also approve each noncareer appointment before the agency makes that appointment, except that an appointment to or from any SES position within an independent regulatory commission is not subject to review or approval by any entity of the Executive Office of the President. [See 5 U.S.C. 3392(d).] Agencies must obtain limited appointment authorities from OPM on a case-by-case basis, but OPM has provided a “pool” of authorities equal to 3 percent of each agency’s SES space allocation. An agency can use its pool without prior OPM approval for SES limited appointment of career or career-type non-SES employees to positions appropriate for the type of appointment. Such appointments are made to SES positions established within the agency’s existing number of SES spaces, unless the agency requests and OPM approves a new temporary SES space. The law limits the total number of SES positions that can be filled by noncareer appointment to 10 percent of the Governmentwide SES space allocation and 25 percent of an individual agency’s allocation (unless the allocation is 3 or less). Additional limitations are

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imposed, administratively or by other statutes, on an agency-by-agency basis. The law also limits the number of SES positions that can be filled by limited appointment to 5 percent of the Governmentwide SES space allocation. [5 CFR part 317, subpart F] 20. What assistance is available from OPM to help agencies during transition? OPM may make SES limited term appointment authorities available to agencies for positions related to a transition. These appointments normally last no longer than 6 months. (If an SES authority would not be appropriate, e.g., the position is senior-level rather than SES, under conditions prescribed in regulation, agencies may establish temporary transitional Schedule C positions during the 1-year period immediately following a change in Presidential administration, the appointment of a new department or agency head, or the creation of a new department or agency to facilitate transition.) [See 5 CFR 213.3302 for Schedule C]

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21. Can SES noncareer or limited appointments be used for individuals who are awaiting Senate confirmation? Yes; OPM may authorize a noncareer or limited appointment authority for an individual who has been nominated by the President, but whose appointment is pending Senate confirmation. Such appointments may not be made to the position for which the individual has been nominated. Rather, the individual normally serves in an advisory capacity in another position until confirmed. (Instead of an SES appointment, agencies may use a consultant appointment under 5 U.S.C. 3109, provided the appointment is not to an SES position, the individual meets the definition of a consultant, and the work assigned requires consultant services. See also Questions 33 and 34, and 5 CFR part 304.) 22. Are individuals who receive SES limited emergency and limited term appointments eligible for health benefits, life insurance, and retirement coverage? Yes, if the agency designates the appointment as provisional or the appointment is for more than 1 year. For example, an agency may designate an appointment of 1 year or less as provisional when it is expected that the individual will be converted to a nontemporary SES appointment (career or noncareer) or to a non-temporary Presidential appointment upon OPM approval, White House clearance, and/or confirmation by the Senate. The limited emergency or limited term appointment must be designated as a “provisional appointment” on the SF-50, Notification of Personnel Action. The appointee will then be eligible for health benefits, life insurance, and retirement coverage. [See 5 CFR 316. 403; 5 CFR 317.602 for provisional appointments]

Pay and Other Compensation 23. Are there any restrictions on what a new SES appointee can be paid? The agency determines the rate of pay within the SES rate range applicable to the agency, subject to the requirements in OPM regulations. The maximum for an agency with a certified performance appraisal system is a rate equivalent to Executive Level II; otherwise, the maximum is the rate for Executive Level III. In determining the initial rate of basic pay, agencies must consider the nature and quality of the individual’s experience, qualifications, and accomplishments as they relate to the requirements of the SES position, as well as the

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individual’s responsibilities in the job held immediately before the SES appointment. Rates of basic pay above the rate for Executive Level III generally are reserved for those executives who possess superior leadership or other competencies. However, a senior executive’s salary above EX-III may not be reduced due to transfer from an agency with a certified performance appraisal system to an agency that does not have one. Generally, an SES member may receive a pay adjustment only once during any 12-month period. The setting of the initial SES pay rate triggers the 12-month clock. However, an agency may provide additional pay increases under certain circumstances as provided in OPM regulations. [5 U.S.C. 5383; 5 CFR part 534]

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24. What pay and other flexibilities are available to help recruit SES personnel? Agencies may use several discretionary pay flexibilities to deal with documented staffing difficulties. Specific statutory and regulatory conditions govern the use of each of these flexibilities. Full documentation required by laws and regulations must be maintained, and pertinent information will be subject to public scrutiny and third-party review. We caution agencies to exercise these flexibilities judiciously and use them only when necessary to address documented staffing problems. Payment of travel and transportation expenses to any individual for pre-employment interviews and to a new appointee for moving expenses from his/her place of residence to the duty station. [5 U.S.C. 5706b and 5723; 5 CFR part 572] Advance payment of basic pay covering not more than 2 pay periods for a new appointee, except for appointment as agency head. [5 U.S. C. 5524a; 5 CFR part 550, subpart B] Recruitment or relocation incentives of up to 25 percent of annual basic pay times the number of years in the service agreement, when it would otherwise be difficult to fill a position and the action involves recruitment of a new appointee in the Federal Government or relocation of a current appointee to a different commuting area. In return, an employee must sign an agreement to serve for a specified period of time – at least 6 months in the case of a recruitment incentive. These incentives may not be paid to an employee in a position (1) to which the individual was appointed by the President, (2) in the Senior Executive Service as a noncareer appointee, (3) which has been excepted from the competitive service by reason of its confidential, policydetermining, policy-making, or policy-advocating character, (4) designated as the head of an agency, including an agency headed by a collegial body composed of two or more individual members, or (5) in which the employee is expected to receive an appointment as an the head of an agency. [5 U.S.C. 5753; 5 CFR part 575, subparts A and B] Retention incentives of up to 25 percent of basic pay for an employee with unusually high or unique qualifications or serving a special agency need when the employee would be likely to leave Federal service or, under certain limited conditions, likely to leave for a different position in the Federal service. (The employee coverage exclusions noted above for recruitment and relocation incentives also apply to retention incentives.) [5 U. S.C. 5754; 5 CFR part 575, subpart C] Waiver of dual compensation restrictions for civilian retirees in certain situations. Approval must be obtained from OPM on a case-by-case basis, and the agency must

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have experienced exceptional difficulty in recruiting a qualified employee for the position. Agencies are cautioned that these waivers are intended to be rare exceptions, used only in the most unusual circumstances – a detailed justification that covers the criteria specified in the regulations must accompany the waiver request. (Agencies should send waiver requests for positions above GS-15 to the Deputy Associate Director, Center for Leadership and Executive Resources Policy.) [5 U.S. C. 8344 and 8468; 5 CFR part 553]

Leave 25. What leave flexibilities are available to SES employees? SES employees are covered by the Federal leave system. Annual Leave. Under the Workforce Flexibility Act of 2004, which was enacted on October 30, 2004, SES members became entitled to earn eight hours of annual leave per full biweekly pay period, regardless of their years of service. SES members may carry over up to 90 days (720 hours) of annual leave to the next leave year. They may receive a lump-sum payment for unused annual leave when they separate from Federal service.

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Sick Leave. Employees earn 13 days of sick leave a year. Sick leave also accrues incrementally, i.e., four hours every two weeks. Sick leave accumulates without limit in succeeding years. In certain situations, employees may use sick leave for family care, including using a total of up to 12 weeks of sick leave each year to care for a family member with a serious health condition, and for adoption or bereavement purposes. [5 U.S.C. 6301- 6312; 5 CFR part 630 (subparts B, C, and D)] Family and Medical Leave. Under the Family and Medical Leave Act of 1993 (FMLA), an employee is entitled to a total of 12 workweeks of unpaid leave during any 12month period for: (1) the birth of a child and care of the newborn; (2) the placement of a child with the employee for adoption or foster care; (3) the care of an employee’s spouse, son or daughter, or parent with a serious health condition; and (4) an employee’s own serious health condition that makes him or her unable to perform the duties of the employee’s position. An employee may substitute annual leave or sick leave, as appropriate, for unpaid leave under the FMLA. [5 U.S.C. 6381-6387; 5 CFR part 630 (subpart L)] Leave Transfer and Leave Bank Programs. An employee who has a personal or family medical emergency and who has exhausted his or her own leave may receive donated annual leave from other Federal employees through the voluntary leave transfer or leave bank programs. All agencies must have a leave transfer program. In addition, an agency may also choose to establish a leave bank for its employees. [5 U.S.C. 6331-63 73 ; 5 CFR part 630 (subparts I and J)]

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In addition, employees are entitled to court leave, military leave, leave for bone marrow or organ donation, and other types of leave. Additional information on the Federal Government’s leave programs is available on OPM’s website at www.opm.gov/oca/ leave/index.htm. [5 U.S. C. 6321- 6327; 5 CFR part 630 (subparts F, G, and H)]

Performance Appraisals 26. What effect does a change in Presidential administrations have on performance appraisals? Agencies cannot appraise or rate career SES appointees’ performance for 120 days following the inauguration of a new President (i.e., from January 20 through May 19, 2009). This includes the supervisor’s initial appraisal, higher level official’s review, a Performance Review Board’s recommendations, and an appointing authority’s final rating. The length of the performance appraisal period is not extended by this moratorium – it just delays the appraisal and rating actions. However, this moratorium does not preclude an interim appraisal when an appointee changes positions or a supervisor leaves, nor does it preclude a progress review during the appraisal period. [5 U.S.C. 4314(b) (1) (C) ; 5 CFR 430.305 (a) (3)]

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Awards 27. Are there restrictions on awards during the transition period? Yes; there is a statutory prohibition on granting awards under 5 U.S.C. Chapter 45 to senior politically-appointed officers during the Presidential election period, defined as the period from June 1, 2008, through January 20, 2009. This prohibition applies to Schedule C appointees and SES members who are not career appointees. There is also a statutory prohibition on granting cash awards under chapter 45 of title 5, United States Code, to Executive Schedule officials at any time. These restrictions do not preclude a Presidential Rank Award under 5 U.S.C. 4507 for a former career SES appointee who elected to retain eligibility for Presidential ranks under 5 U.S.C. 3392(c) upon appointment to an Executive Schedule position. Nor do they preclude an SES performance award under 5 U.S.C. 5384, which is granted under chapter 53 rather than chapter 45, for such an employee who elected to retain eligibility for performance awards. An agency may take a broad range of factors into account in exercising its discretion to determine whether to grant an award in individual cases, including budget limitations, restrictions on the size of the award pool, Congressional concerns, and Administration policy.

Removals and Other Separations 28. What restrictions are there on the removal of career appointees from the SES? Under 5 U.S.C. 3393(g), a career appointee may not be removed from the SES or civil service except in accordance with applicable provisions of sections 1215 (disciplinary action by the Merit Systems Protection Board based on a written complaint by the Special Counsel), 3592 (removal during the probationary period or removal at any time for less than fully

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successful executive performance), 3595 (removal by reduction in force), 7532 (removal in the interests of national security), or 7543 (adverse action removal). A career SES appointee cannot be involuntarily removed for performance or during the probationary period within 120 days after the appointment (including a recess appointment) of a new agency head or the appointment of a new noncareer supervisor who has authority to remove the career appointee. This restriction does not apply to (1) any adverse action removal of a post- probationary career SES appointee under 5 U.S.C. 7543, (2) a removal under 5 U.S.C. 43 14(b)(3) based on an unsatisfactory performance rating issued before the moratorium, or (3) a disciplinary removal of a probationer that was initiated before the moratorium. [5 U.S.C. 3592(b); 5 CFR 359.406 and 359.503]

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29. What effect does the 120-day moratorium on removals from the SES have on completion of the one-year SES probationary period by career appointees? The 120-day moratorium on removals does not interrupt or affect the progress of an SES member’s one-year probationary period. If the 120-day moratorium prevents an agency from carrying out a decision to remove a career appointee before the probationary year ends, the agency loses its opportunity to remove the individual under probationary procedures. There is one exception. The moratorium does not prevent a disciplinary removal of a probationer that was initiated before the moratorium began. [5 U.S.C. 3592(b); 5 CFR 359.406] 30. Can the resignation of an SES appointee during the change in Presidential administrations or a change in agency leadership be considered involuntary for the purpose of eligibility for discontinued service retirement (DSR)? Yes, in certain circumstances. A resignation qualifies for DSR if the SES appointee (i.e., any noncareer appointee, or a career appointee who reports to a Presidential appointee) resigns in response to a written request from an administration representative having the authority to request such resignation or from the new agency head. A copy of the request must accompany the retirement application. (Note that a career appointee is not obligated to comply with a request to resign, nor may the career appointee be removed for not submitting a resignation.) The resignation of a Presidentially-appointed policy-making officer qualifies for DSR whenever the President accepts the individual’s resignation. When it is known that a Presidential appointee is leaving, OPM considers the resignation of a noncareer SES or Schedule C appointee who works for that person to be an involuntary separation for purposes of DSR. Agencies submitting retirement applications should document the President’s acceptance of the resignation or that the Presidential appointee for whom a separating Schedule C or noncareer SES works is leaving. In all cases, to be eligible for DSR, the appointee must meet all the other DSR requirements, e.g., must have 25 years of service (at any age), or be age 50 and have 20 years of service. [CSRS and FERS Handbook for Personnel and Payroll Offices, Chapter 44 – see http://www.opm.gov/retire/asd/htm/HOD.htm]

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31. Under what conditions are career SES appointees who are involuntarily separated entitled to severance pay? To be eligible for severance pay, an employee must be serving under a qualifying appointment, must have completed at least 12 months of continuous service, and must be removed from Federal service involuntarily. An employee is not eligible for severance pay if he or she is serving under a nonqualifying appointment, declines a reasonable offer, is serving under a qualifying appointment in an agency scheduled by law or Executive order to be terminated within one year after the date of the appointment, is receiving injury compensation payments under subchapter I of chapter 81 of title 5, United States Code, or is eligible upon separation for an immediate annuity from a Federal civilian retirement system or from the uniformed services. For additional information on severance pay, see 5 CFR part 550, subpart G. See also Question 16 concerning former career SES appointees who are entitled to elect to continue severance pay benefits. 32. Are noncareer or limited SES appointees entitled to severance pay? No, since they accept their appointments with a presumed understanding that their tenure is less than career and that they are subject to removal at any time. (Exception: if a full-time limited SES appointment begins within three days after separation from a qualifying appointment without a time limit, the limited appointment may convey severance pay eligibility -- see your agency’s Human Resources office.) Presidential appointees are similarly not eligible for severance pay. [5 CFR 550.703 definition of "non qualifying appointment"]

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Experts and Consultants 33. How do you define “experts and consultants”? An “expert” has unique or superior education, skills, and accomplishments in a particular field and is regarded as an authority by others in the field. The expert performs unusually difficult work beyond the usual range of competent employees in the field. A “consultant” provides advice, options, or recommendations on issues or problems and usually has a high degree of administrative, professional, or technical experience. The consultant may also be a person affected by a program who can provide public input based on personal experience. [5 U.S.C. 3109; 5 CFR part 304] 34. What are the limitations on expert and consultant appointments? There are limitations on the length and type of appointment as well as on the nature of the work they can do. Experts and consultants serve under temporary appointments that are either temporary not to exceed one year or they are intermittent. An appointment is intermittent if the appointee does not have a regular work schedule. Experts and consultants may not serve in Senior Executive Service positions or positions that require Presidential appointment and/or Senate confirmation (but they may serve in an advisory capacity pending confirmation). It is not appropriate to assign consultants to the policy-making or managerial work that characterizes the SES. Experts and consultants may not do work performed by the agency’s regular employees or function in the agency’s chain of command. For example, they may not supervise agency

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employees, direct the preparation of a report or special study, or make decisions regarding agency policies or programs. Their work must be strictly advisory in nature (reviewing/recommending) or limited to a special project requiring an exceptional level of expertise. [5 U.S.C. 3109; 5 CFR part 304] 35. How are experts and consultants paid? Each agency determines the pay for experts and consultants based on qualifications and the work to be performed. Experts and consultants appointed under 5 U.S.C. 3109 may not be paid more than the daily rate for GS-15, step 10, excluding locality pay, unless authorized by some other law. They may also be appointed without compensation. Experts and consultants are not subject to the General Schedule classification provisions in chapter 51 of title 5, U. S. Code. See 5 CFR part 304 for additional information on pay limitations. [5 U. S. C. 31 09; 5 CFR part 304]

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Miscellaneous 36. Can agencies have an overlap in an SES position for continuity during a change in Presidential administrations or a change in agency leadership? No. Agencies cannot employ two individuals in the same position at the same time (“dual incumbency”). Nevertheless, there are options available to agencies to provide continuity in key positions and meet other transition needs. When an incumbent’s intention to leave has been documented, an agency may establish a different position to employ a designated successor for a brief period pending the incumbent’s departure. For example, when an office director is leaving, a temporary special assistant position could be established for a short period to facilitate orientation of the incoming director to the office’s operations. OPM may authorize the use of SES limited appointment authorities for short periods of time for temporary executive positions established under such circumstances. Agencies may also establish temporary transitional Schedule C positions for similar non-executive positions to assist with transitions, under circumstances described in Question 20. [See 5 U.S. C. 3132, 3134, and 3394; 5 CFR part 317, subpart F, for limited appointments; 5 CFR 213.3302 for transitional Schedule C appointments] 37. What special requirements are there for SES actions in independent regulatory commissions? The appointment or removal of an SES appointee in an independent regulatory commission may not be subject, directly or indirectly, to review or approval by any officer or entity within the Executive Office of the President. [5 U.S.C. 3392(d)]

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APPENDIX F : QUESTIONS AND ANSWERS: FEDERAL BENEFITS FOR NEW POLITICAL APPOINTEES This appendix answers some of the basic questions that new political appointees might ask about their eligibility for Federal health benefits, life insurance, and retirement coverage. It is intended primarily for first-time employees and employees (and annuitants) who are returning to Government service after a break in service of a year or more. This material supplements the information in other parts of the Transition Guide. For more detailed information, please contact your agency’s Human Resources office.

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1. Will I be eligible for Federal health benefits coverage? Your eligibility for Federal Employees Health Benefits (FEHB) coverage depends on the type of appointment you receive. Generally, employees with permanent appointments are eligible to enroll for FEHB coverage, while employees with temporary appointments limited to 1 year or less are not eligible. However, if your appointment is designated as a “provisional appointment,” you are eligible for FEHB coverage. (Provisional appointments are used to fill positions known to be permanent with the expectation that the appointee will be converted to permanent status.) 2. Will I be eligible for premium conversion if I enroll in a health benefits plan? Premium conversion is a tax benefit, which allows you to allot a portion of your salary back to your employer, which your employer then uses to pay your contribution for FEHB coverage. The allotment is made on a pre-tax basis, which means that the money is not subject to Federal income, Medicare, or Social Security taxes. All employees in the executive branch of the Federal Government who are participating in the FEHB Program, and whose pay is issued by an executive branch agency, are eligible to have FEHB premiums paid under the premium conversion plan. Also, if you are enrolled in the FEHB Program, employed outside the executive branch, or your pay is not issued by an agency of the executive branch, you may be eligible if your employer agrees to offer participation in the plan. See OPM’s website at www.opm.gov/insure for more information on premium conversion. 3. If I am eligible for Federal health benefits coverage, do I need to take any action, or is coverage automatic? Coverage is not automatic. You must enroll within 60 days after you become eligible, and select the plan in which you want to be covered. You will be able to choose from among several feefor-service plans and health maintenance organizations. 4. Am I able to elect an FEHB health plan option for a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA)? The FEHB Program offers HDHPs with HSAs and Health Reimbursement Arrangements (HRAs) for those not eligible for HSAs. An HDHP with an HSA provides traditional medical coverage and a tax-free way to help you build savings for future medical expenses. The HDHP features higher annual deductibles (e.g., a minimum of $1,100 for Self and $2,200 for Self and Family coverage) than other traditional health plans. The maximum outof-pocket limit for HDHPs participating in the FEHB Program in 2008 is $5,600 for Self and

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$11,200 for Self and Family enrollment. Depending on the HDHP, you may have the choice of using in- network and out-of-network providers. Using in-network providers will save you money. With the exception of preventive care, you must meet the annual deductible before the plan pays benefits. Preventive care services are generally paid as first-dollar coverage or after a small deductible, or co-payment. A maximum dollar amount (up to $300, for instance) may apply. When you enroll in an HDHP, the health plan determines if you are eligible for a Health Savings Account (HSA) or a Health Reimbursement Arrangement (HRA). If you are enrolled in Medicare, you are not eligible for an HSA. Each month, the plan automatically credits a portion of the health plan premium into your HSA or HRA, based on your eligibility as of the first day of the month. You can pay your deductible with funds from your HSA or HRA. If you have an HSA, you can also choose to pay your deductible out-of-pocket, allowing your savings account to grow.

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5. Will I be eligible for FSAFEDS? If you are an employee working for an executive branch agency or an agency that has adopted the Federal Flexible Benefits Plan (“FedFlex”), you can elect to participate in the Federal Flexible Spending Accounts Program (FSAFEDS). FSAFEDS offers two different flexible spending accounts (FSAs): a health care flexible spending account, and a dependent care flexible spending account. New and newly-eligible employees have 60 days after their entry on duty to enroll in this program. However, there is also an open season each year at the same time as the Federal Employees Health Benefits Program open season during which you enroll in an FSA for the following year. 6. Will I be eligible for Federal life insurance coverage? Life insurance coverage also depends on the type of appointment you receive. Generally, employees with permanent appointments are eligible for life insurance coverage, while employees with temporary appointments limited to 1 year or less are not eligible. However, if your appointment is designated as a “provisional appointment,” you are eligible for life insurance coverage. 7. If I am eligible for Federal life insurance coverage, do I need to take any action or is there automatic coverage? If you are eligible for Federal life insurance coverage, you will have Basic life insurance coverage automatically unless you waive it. If you want more than Basic coverage, you must act within 31 days to select one or more of three types of optional coverage. 8. I am an annuitant. How will my health benefits and life insurance coverage be affected when I become reemployed in the Federal service? That depends on the kind of appointment you have when you become reemployed (see Question 15). If you are a reemployed annuitant, your coverage may be handled differently from other employees. Your Human Resources office can provide the necessary information.

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9.Will I be eligible to apply for long term care insurance through the Federal Long Term Care Insurance Program? If you are in an eligible position, you may apply for this insurance as a new employee using abbreviated underwriting, within 60 days after you begin your Federal position. Your spouse is also eligible to apply with abbreviated underwriting during those 60 days. Either or both of you may choose to apply. There is no “Self and Family” option. Long Term Care Partners, the administrator of the program, will evaluate your application and let you know if you are eligible to enroll in the Program. An “eligible” position means that you are in a position that conveys eligibility for the Federal Employees Health Benefits Program, even if you do not enroll in the FEHB Program. If you are unsure of your eligibility, please ask someone in your agency’s Human Resources office. 10. Will I be eligible for coverage under the Federal Employee Dental and Vision Insurance Program (FEDVIP)? Federal employees eligible to enroll in the FEHB Program are eligible to enroll in FEDVIP. As noted above, eligibility for FEHB coverage depends on the type of appointment you receive. Generally, employees with permanent appointments are eligible to enroll in FEHB, while employees with temporary appointments limited to 1 year or less are not eligible. However, if your appointment is designated as a “provisional appointment,” you will be eligible for FEHB coverage. (Provisional appointments are used to fill positions known to be permanent with the expectation that the appointee will be converted to permanent status.)

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11. If I am not enrolled in FEHB, can I still enroll in FEDVIP? Yes, while you need to be eligible for FEHB, you don’t have to be enrolled in FEHB to enroll in FEDVIP. 12. If I am eligible for FEDVIP coverage, do I need to take any action, or is coverage automatic? Coverage is not automatic. You must enroll within 60 days after you become eligible and select the plan in which you want to be covered. You may enroll in either a dental plan or a vision plan, or both. 13. Are FEDVIP premiums paid pre-tax? Premiums are paid on a pre-tax basis (premium conversion) for active employees. This is mandatory. Unlike the FEHB Program, employees may not opt out of premium conversion for FEDVIP. 14. Will I be eligible for retirement coverage? That will depend on the type of appointment you receive. If you receive a permanent appointment, you will be eligible for retirement coverage. Also, a “provisional appointment” (see Question 1) will confer retirement coverage. Generally, if you receive a temporary appointment limited to 1 year or less, or if you are an intermittent employee, you will not be eligible for retirement coverage. Other less common appointments may also exclude you from coverage, so you should check with your employing agency on this point.

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15. If I am appointed to a position that does confer retirement coverage, what type of coverage will I have? If this will be your first civilian Government service, you will be covered by the Federal Employees’ Retirement System (FERS), a three-tiered system consisting of Social Security benefits, a basic benefit plan, and a savings plan. If, on the other hand, you have had previous civilian service in the Government, you may be covered, depending on the circumstances addressed in Questions 16 and 17, either by FERS or a coordinated combination of the Civil Service Retirement System (CSRS) and Social Security coverage called CSRS Offset. (Note: CSRS coverage without Social Security is available only to people who (1) had only CSRS coverage; (2) return to CSRS-covered employment after a break in service of less than 1 year; and (3) are not required by law to have Social Security coverage in the new position.)

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16. What factors will determine the specific retirement plan by which I am covered? If your previous Federal service was covered by FERS, your new appointment will automatically be covered by FERS. You will also be covered automatically by FERS if your previous civilian service totaled less than 5 years. Generally, FERS coverage also applies if none of your prior service was covered by CSRS (or the Foreign Service Retirement System). If you are not automatically covered by FERS, unless you have a term or other excluded appointment, you will be covered under the CSRS-Offset provision, and have an opportunity to elect FERS coverage within 6 months. Except as provided in the next question, this is true regardless of any election during your previous service. 17. I was a senior official with special election opportunities during the 1987 FERS open season. What is the effect of the retirement coverage I elected at that time on my new appointment? Whatever you elected then (FERS, CSRS, Offset, no coverage) will continue in your new appointment. However, you may elect FERS coverage within 6 months after your new appointment. 18. I took a refund of my retirement contributions after my previous service. What effect will that have on my retirement coverage now? None, but the amount of your eventual retirement benefits may be affected. 19. I am currently an annuitant. What will my retirement coverage be if I am reemployed as a senior official? Reemployed CSRS annuitants, while generally exempt from Social Security coverage, are subject to Social Security coverage when reemployed as senior officials. (The term “senior official” is generally limited for this purpose to a Presidential appointee, noncareer member of the Senior Executive Service, a Federal judge, or a Member of Congress.) Consequently, CSRS annuitants reemployed as senior officials under circumstances in which the annuity continues have CSRS Offset coverage. However, you will have a six-month window to elect FERS following reemployment. Generally, if you are a FERS annuitant, you will remain subject to FERS coverage upon reemployment. If you are employed by the Department of Defense (DOD), unless your retirement was based on an involuntary separation, you will be excluded from CSRS or FERS, and you will

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be covered only by Social Security. However, you will receive both your full salary and your annuity. 20. I am an annuitant. What happens to my annuity if I accept a position with the new administration? In most cases, you will continue to receive your annuity, but the amount of your annuity will be offset from your salary. However, your annuity would be terminated upon reemployment if: You retired under CSRS, your annuity is based on an involuntary separation, and reemployment is to an appointment that provides retirement coverage (see Question 10); You retired under CSRS and you are reemployed in a Presidential appointment subject to retirement coverage; or You retired on disability under either CSRS or FERS, and OPM finds you recovered or restored to earning capacity. If you are employed by DOD, unless your retirement was based on an involuntary separation, your annuity will continue and you will receive the full salary for your position, you will be excluded from CSRS or FERS, and you will be covered only by Social Security. Under these circumstances, you will earn no additional retirement benefits.

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21. I am a former Member of Congress. What will my retirement status be in my new appointment? Because of the special rules that apply to the reemployment of Members of Congress, your agency benefits officer should request assistance from OPM’s Benefits Officers Resource Center at 202-606-0788.

APPENDIX G: MERIT SYSTEM PRINCIPLES (5 U.S.C. 2301) 1. Recruitment should be from qualified individuals from appropriate sources in an endeavor to achieve a work force from all segments of society, and selection and advancement should be determined solely on the basis of relative ability, knowledge, and skills, after fair and open competition which assures that all receive equal opportunity. 2. All employees and applicants for employment should receive fair and equitable treatment in all aspects of personnel management without regard to political affiliation, race, color, religion, national origin, sex, marital status, age, or handicapping condition, and with proper regard for their privacy and constitutional rights. 3. Equal pay should be provided for work of equal value, with appropriate consideration of both national and local rates paid by employers in the private sector, and appropriate incentives and recognition should be provided for excellence in performance.

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4. All employees should maintain high standards of integrity, conduct, and concern for the public interest. 5. The Federal work force should be used efficiently and effectively. 6. Employees should be retained on the basis of adequacy of their performance, inadequate performance should be corrected, and employees should be separated who cannot or will not improve their performance to meet required standards. 7. Employees should be provided effective education and training in cases in which such education and training would result in better organizational and individual performance. 8. Employees should be– protected against arbitrary action, personal favoritism, or coercion for partisan political purposes, and prohibited from using their official authority or influence for the purpose of interfering with or affecting the result of an election or a nomination for election. 9. Employees should be protected against reprisal for the lawful disclosure of information which the employees reasonably believe evidences– a violation of any law, rule, or regulation, or mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety.

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CHAPTER SOURCES

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The following chapters have been previously published:

Chapter 1 is an edited, reformatted and augmented edition of a Congressional Research Service publication, CRS Report for Congress Order Code RL30736 Updated April 3, 20078. Chapter 2 is an edited, reformatted and augmented edition of a Congressional Research Service publication, CRS Report for Congress Order Code RS20709 Updated February 11, 2008. Chapter 3 - This remark is delivered as testimony before the Subcommittee on Government Management, Organization, and Procurement, Commettee on Oversight and Government Reform, U.S. House of Representatives, dated Wednesday, September 24, 2008. Chapter 4 is an edited, reformatted and augmented edition of a United States Office of Government Ethics publication dated 2009 Transition. Chapter 5 is an edited, reformatted and augmented edition of a United States Office of Personnel Management, dated June 2008.

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INDEX

9 9/11, vii, viii, 10, 43, 45, 49 9/11 Commission, 10

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A accidental, 102, 112 accountability, 47, 52, 56, 63 accounting, 6 accuracy, 52 achievement, 20 acute, 49 Adams, vii, 1, 2, 37 adjustment, 94, 116, 126, 129 administration, vii, viii, ix, 3, 9, 11, 16, 20, 37, 38, 39, 41, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 65, 66, 73, 78, 84, 91, 92, 104, 106, 107, 110, 111, 113, 119, 122, 128, 132, 139 administrative, 8, 12, 19, 20, 22, 38, 76, 81, 109, 111, 133 administrators, 71 Afghanistan, 46, 47, 58 age, 72, 102, 105, 106, 112, 113, 132, 139 agents, 111 agriculture, 12 aid, 13, 48, 66, 134, 135, 137 air, 55 Air Force, 52, 61 air traffic, 55 alternative, 46 alternatives, 13 amendments, 24, 32, 45, 56, 87, 99 annual rate, 95, 96, 102 annuities, 98 appendix, 122, 135

application, 44, 83, 85, 86, 103, 116, 124, 132, 137 appraisals, 75, 76 appropriations, vii, 1, 6, 10, 25, 39, 93 Archivist, 22 Arkansas, 16 Armed Forces, 99 Army, 47, 52, 59 assessment, 56, 73 assets, 50, 69, 70, 78 assignment, 91, 96 Attorney General, 15, 33 auditing, 25, 46 authority, 15, 20, 29, 32, 46, 63, 77, 83, 85, 87, 88, 89, 90, 91, 92, 93, 94, 97, 98, 106, 113, 119, 123, 124, 126, 127, 128, 131, 132, 133, 140 availability, 52 aviation, 50 awareness, 76

B bank account, 70 bank failure, 46 banking, 46 banks, 46 behavior, 74 behind-the-scene, 77 benefits, 6, 47, 54, 89, 92, 97, 98, 104, 106, 107, 110, 111, 113, 115, 126, 128, 133, 135, 136, 138, 139 bereavement, 99, 130 binding, 30 bioterrorism, 49 bipartisan, 3 birth, 99, 106, 113, 130 Board of Governors, 14 bonds, 52 bone marrow, 100, 131

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Index

144 brain injury, 49 bribery, 77 bribes, 77 broad spectrum, 51 brokerage, 70 Buckley v. Valeo, 86 Bush Administration, 8, 15

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C cabinet members, 11, 13, 15 campaign finance, 3 campaign funds, 6 candidates, 6, 8, 12, 17, 31, 39, 40, 80, 116, 117 capital gains, 68, 78 Capitol Hill, 45 cargo, 48 catastrophes, 50 census, 47, 57, 59 census bureau, 47, 59 Centers for Disease Control, 54 certificate, 31, 68 certification, 17, 40 certifications, 17, 40 chain of command, 133 channels, 76 Chief of Staff, 15, 16, 35, 39, 41 children, 70 China, 49 citizens, 72 civil service, 56, 84, 86, 91, 93, 122, 131 civilian, 106, 113, 114, 115, 126, 129, 133, 138 classification, 134 clients, 69 Clinton administration, vii, 1, 9, 33, 55 closure, 97 coercion, 140 Colorado, 32 Committee on Appropriations, vii, 1, 10, 33, 34, 39, 41 community, 14, 72, 74, 76 compatibility, 16 compensation, vii, viii, 1, 4, 6, 12, 30, 37, 38, 69, 71, 77, 105, 107, 110, 111, 129, 133, 134 competition, 117, 139 compilation, 22, 70, 72 complexity, 116 compliance, 23, 67 composition, 47 computer systems, 54 concrete, 72, 73 Conference Committee, 32 confidence, 56, 65, 88, 119

conflict, 23, 48, 68, 71, 72, 74, 76, 78, 79 conflict of interest, 23, 68, 74, 76, 78, 79 Congress, vii, viii, 2, 3, 4, 5, 6, 7, 8, 10, 17, 19, 21, 23, 27, 28, 29, 32, 33, 34, 35, 40, 41, 43, 44, 45, 46, 48, 49, 51, 52, 53, 55, 56, 57, 58, 63, 65, 84, 91, 93, 115, 138, 139, 141 Congressional Record, 35, 41 consent, 23, 30, 65, 84, 85 conservation, 14 Consolidated Appropriations Act, viii, 2, 10, 39 Constitution, 71 constraints, 87 consultants, 4, 30, 93, 94, 98, 133, 134 consulting, 14, 75, 79, 80 contingency, 80 continuity, vii, 1, 2, 13, 29, 37, 49, 54, 84, 85, 90, 123, 134 contractors, 49, 54, 75, 80 contracts, 48, 54, 83 control, 51, 54 conversion, 56, 101, 103, 135, 137 corruption, 72 costs, vii, 1, 3, 4, 7, 9, 41, 48, 51, 54, 101, 104 counsel, 6, 12 counseling, 74, 81 countermeasures, 49 counterterrorism, 47 covering, 47, 76, 79, 96, 129 credentialing, 108 credit, 11, 25, 46, 98, 102, 113 critical infrastructure, 47, 50 critical period, vii, viii, 43, 45 criticism, 13 culture, 65, 66, 72, 74 currency, 25

D danger, 140 database, 58 death, 11, 27, 102, 112 debts, 52 decision makers, 49, 53 decisions, 10, 13, 15, 19, 20, 21, 47, 63, 90, 122, 134 deductibles, 102, 135 deduction, 106, 112 defense, vii, 1, 12, 14, 39, 51, 67 defined benefit pension, 79 definition, 17, 40, 68, 69, 125, 128, 133 delinquency, 106, 113 democracy, 2, 37 Democrats, 35, 41 demographics, 44, 48

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Index Department of Defense, 46, 95, 98, 117, 138 Department of Defense (DOD), 46, 138 Department of Energy, 54 Department of Homeland Security, vii, viii, 43, 45, 57, 59 Department of Interior, 52 Department of Justice, 33, 78, 87, 93 Department of State, 93 Department of Transportation, 16 deposits, 114 depreciation, 52 destruction, 50, 83 disability, 49, 99, 139 discipline, 49 disclosure, viii, 6, 8, 21, 22, 23, 38, 66, 67, 68, 69, 70, 71, 73, 74, 76, 78, 79, 81, 82, 83, 140 discourse, 75 discretionary, 53, 79, 95, 129 discretionary spending, 53 discriminatory, 86 District of Columbia, 8 divestiture, 68, 71, 75 domestic policy, 12 donations, 6 duplication, 23 duties, ix, 22, 25, 30, 31, 65, 72, 78, 81, 83, 87, 89, 98, 99, 130

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E early retirement, 106, 113 earnings, 111, 114, 115, 116 economic policy, 14 election, viii, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 20, 21, 37, 39, 40, 41, 44, 56, 84, 85, 101, 103, 104, 111, 122, 131, 138, 140 electric power, 50 emergency management, 50 emergency preparedness, 75 emergency response, 75 employee pay, 102 employees, ix, 4, 5, 6, 19, 30, 55, 65, 71, 73, 74, 75, 76, 77, 78, 80, 81, 82, 83, 84, 85, 86, 87, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 109, 110, 112, 115, 116, 117, 127, 130, 131, 133, 135, 136, 137, 139, 140 employers, 69, 70, 77, 139 employment, ix, 25, 30, 72, 77, 78, 80, 81, 82, 83, 94, 96, 109, 110, 111, 113, 115, 116, 117, 129, 138, 139 energy, 14 enrollment, 101, 102, 103, 136 entitlement programs, 53

145

environment, vii, viii, 43, 49 equity, 69 estates, 71 ethical issues, 75, 76, 79 ethical principles, 66, 71 ethical standards, 72 ethics, viii, ix, 16, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 78, 79, 80, 81, 82, 83, 92 Ethics in Government Act, viii, 22, 23, 66, 67, 68, 70 evolution, 46 examinations, 93 execution, 29, 51 Executive Branch, ix, 71, 72, 77, 81, 82 Executive Office of the President, ix, 22, 33, 35, 41, 66, 82, 88, 127, 134 Executive Order, 78, 108 exercise, 29, 90, 95, 122, 129 expenditures, 3, 6, 9, 31, 38, 39, 53, 54 expertise, 12, 14, 18, 41, 76, 134

F faculty positions, 93 failure, 52, 78 faith, 72 family, 18, 41, 99, 101, 102, 103, 130 Family and Medical Leave Act (FMLA), 99, 130 family members, 99, 102 Fannie Mae, 46 FDA, 60 FEC, 6 Federal Aviation Administration (FAA), 57, 95 Federal Bureau of Investigation, 93 Federal Deposit Insurance Corporation, 46 Federal Election Commission, 6, 8 Federal Emergency Management Agency, 50 Federal Emergency Management Agency (FEMA), 50 Federal Employees Health Benefits, 101, 112, 135, 136, 137 Federal Employees Health Benefits (FEHB), FEHB, 101, 102, 103, 104, 106, 112, 135, 137 federal funds, 2, 5, 6, 7, 8, 16, 39 federal government, vii, viii, 2, 20, 43, 45, 46, 48, 50, 51, 52, 54, 55, 63 Federal Register, 92 Federal Reserve, 14 Federal Reserve Board, 14 Federal Vacancies Reform Act, 57, 86 fee, 80, 101, 104 fees, 80 feet, 17, 40 finance, 3, 6, 14, 50

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Index

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financial institution, 44, 46, 114 financial institutions, 44, 46 financial markets, 46, 48 financial support, 4 financing, 3 first-time, 135 flexibility, 96 Flexible Spending Accounts (FSAs), 102, 103, 136 flight, 48 flow, 14 focus group, 73 focusing, 68, 70 food, 12, 49 food safety, 50 Ford, 5, 13, 14, 15, 33, 34 foreign affairs, 12 foreign aid, 13 foreign intelligence, 51 foreign nation, 25 foreign policy, 12, 14, 20, 91, 92 framing, 55 fraud, 45, 55, 72 Freddie Mac, 46 freedom, 11 fuel, 50 funding, vii, viii, 1, 2, 3, 5, 6, 7, 9, 10, 11, 17, 18, 25, 37, 38, 39, 40, 63 funds, viii, 2, 3, 4, 5, 6, 7, 9, 10, 17, 18, 24, 25, 26, 28, 31, 32, 38, 39, 40, 63, 69, 71, 80, 93, 104, 114, 136, 140 furniture, 26, 30

G gas, 52 General Accounting Office, 4, 22, 27, 33, 35, 41 general election, viii, 2, 6, 7, 10, 19, 25, 26, 27, 31, 38 general fund, 9, 24, 31, 38 General Services Administration (GSA), vii, viii, 1, 2, 22, 33, 35, 37, 41, 110 generation, 48 gift, 72 gifts, ix, 77, 81 global climate change, 50 globalization, 50 goals, 15, 21, 51, 53, 73, 75, 91, 119 good faith, 72 Gore, 8, 9, 16, 17, 18, 33, 40 governance, 22, 49 government, vii, viii, 1, 2, 3, 8, 14, 18, 20, 41, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 58, 63, 116

Government Accountability Office (GAO), viii, 43, 45 63, 93 Government Pension Offset (GPO), 33, 34, 35, 41, 115, 116 Government Performance and Results Act (GPRA), 51 grants, 69, 107 groups, 12, 15, 74, 75 growth, 50, 51 GSA, vii, 1, 5, 7, 8, 9, 10, 17, 18, 33, 38, 39, 40 guidance, 68, 70, 71, 73, 78, 79, 80, 81, 83, 87, 91, 107, 108, 122

H hazards, 49 health, 44, 48, 49, 99, 101, 102, 104, 105, 111, 112, 128, 130, 135, 136 health care, 44, 48, 49, 104, 105, 136 health care costs, 44, 48 health insurance, 101, 104, 111, 112 hearing, 19, 35, 44, 86 high risk, 57 high-level, 8, 38, 94 high-risk, 48, 50, 54, 55 hip, 20, 90 hiring, 4, 95 homeland security, 44, 90, 123 Homeland Security, vii, viii, 43, 44, 45, 57, 59, 90, 108, 123 horizon, 46 House Committee on Government Reform, 17, 23, 35, 40 housing, 13, 46, 48 human, 14, 22, 44, 47, 48, 55, 75 human capital, 44, 47, 55 human development, 14 human resources, 22, 75 Hurricane Katrina, 49, 50

I id, 52 identification, 54, 83, 108 identity, 107, 108 images, 63 immigration, 47 impeachment, 5, 13 implementation, 44, 45, 46, 52, 55 in transition, 4, 6, 9, 10, 14, 39 inauguration, 3, 7, 12, 14, 16, 17, 18, 19, 20, 22, 25, 26, 29, 31, 37, 38, 40, 41, 58, 67, 87, 131

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Index incentive, 96, 97, 129 incentives, 96, 97, 100, 129, 139 income, 52, 69, 78, 101, 114, 135 income tax, 114 Independent Agencies, vii, 1, 10, 34, 39, 41 individual retirement account, 52 industry, 52, 110 inflation, 2, 7, 18, 24, 41 influenza, 49 information sharing, 47 information system, 57, 116 information systems, 108 information technology, 44, 48, 50, 54, 55, 59, 62, 75 infrastructure, 47, 50, 51, 55 injuries, 49 injury, 99, 133 innovation, 11 insecurity, 49 insight, viii, 43, 44, 45 Inspector General, 22 instability, 46 installment payments, 96 institutions, 46 instruction, viii, 66 instruments, 25, 67 insurance, 46, 69, 101, 102, 103, 104, 105, 111, 112, 128, 135, 136, 137 integration, 54 integrity, 50, 51, 63, 65, 140 Intelligence Reform and Terrorism Prevention Act, 10 interaction, 20 internal controls, 52 Internal Revenue Service (IRS), 6, 17, 40, 52, 57 International Space Station, 48, 59 internet, 67, 70, 79 Internet, 111, 117 interview, 96 interviews, 18, 40, 96, 129 inventories, 52 investigative, 63, 76, 108 investment, 47, 50, 51, 52, 53, 54, 68, 69, 71, 114 IRA, 114 Iraq, 46, 47, 58

J job training, 13 jobs, 15, 82, 84, 116, 117 Jordan, 16 judge, 138 Justice Department, 5

147

justification, 95, 130

L labor-intensive, 67 language, 9, 39, 67 large-scale, 49 law, vii, 1, 6, 13, 28, 29, 30, 32, 58, 65, 69, 72, 87, 88, 90, 91, 92, 94, 103, 115, 119, 123, 124, 127, 133, 134, 138, 140 laws, 29, 47, 50, 52, 56, 66, 68, 71, 72, 74, 76, 78, 79, 82, 84, 111, 122, 129 lawyers, 14 leadership, viii, 14, 15, 20, 22, 50, 53, 54, 55, 66, 73, 75, 76, 78, 82, 90, 91, 107, 110, 111, 129, 132, 134 legislation, vii, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 17, 18, 19, 39, 40, 41, 93 legislative proposals, 22 lending, 85 lifetime, 7, 41 limitation, 17, 40, 89, 95, 96, 97 limitations, 88, 102, 122, 127, 131, 133, 134 Lincoln, 12 loans, 97 lobbying, 82 Lobbying Disclosure Act, 82 lobbyists, 81, 82 local government, 47, 49, 50, 116 logistics, 52 loyalty, 71

M machinery, 44 machines, 26, 30 maintenance, 73, 83, 101, 135 malfeasance, 91, 126 management, viii, 22, 43, 44, 45, 47, 50, 51, 52, 53, 54, 55, 83, 139 Marine Corps, 47 marital status, 139 market, 46, 49 markets, 44, 46 measures, 77 media, 74, 116 Medicaid, 51, 57 Medicare, 51, 57, 101, 104, 135, 136 membership, 101 memory, 44 Merit Systems Protection Board, 89, 92, 109, 131 Microsoft, 67

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Index

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military, 5, 10, 27, 46, 47, 52, 93, 99, 100, 113, 131 Minerals Management Service, 52 missions, vii, viii, 43, 65 MMS, 61 modeling, 74 modernization, 54 money, 25, 101, 104, 105, 109, 114, 135, 136 moratorium, 88, 90, 91, 122, 123, 124, 125, 131, 132 morning, 13, 19 movement, 122, 125 MRA, 106, 113 multiples, 102, 105 mutual funds, 69, 80

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N NASA, 48, 57, 59 nation, 17, 25, 40, 44, 45, 46, 47, 49, 50, 58 National Archives and Records Administration (NARA), 8, 22, 38, 83 National Commission on Terrorist Attacks, 10 National Defense Authorization Act, 54 National Flood Insurance Program, 57 National Institute of Standards and Technology, 108 national origin, 72, 139 National Response Plan, 49 national security, viii, 2, 10, 31, 50, 83, 90, 123, 132 National Security Council, 108 natural, 12, 14, 49 natural disasters, 49 natural resources, 12, 14 Navy, 52 neglect, 91, 126 negotiating, 72, 82 network, 136 networking, 91 New York Times, 34 newsletters, 73 next generation, 44, 58 NGO, 49 Nixon, 4, 5, 12, 13, 15, 33, 34 non-defense, vii, 1, 39 nondisclosure, 71 nongovernmental, 50, 73 nongovernmental organization, 73 non-profit, 17, 40 normal, 127

O obligation, 17, 40 obligations, 9, 26, 31, 71, 72, 77

observations, 46 Office of Management and Budget (OMB), 14, 22, 34, 41, 54, 108 Office of Personnel Management (OPM),55, 56, 58, 62, 81, 84, 85, 86, 88, 89, 90, 91, 92, 93, 94, 96, 97, 98, 100, 101, 102, 103, 105, 108, 110, 112, 115, 116, 117, 122, 123, 126, 127, 128, 129, 131, 132, 134, 135, 139, 141 offshore, 52 oil, 47, 52 omnibus, vii, 2, 10, 39 online, 74 on-line, 48 Operation Iraqi Freedom, 58 organ, 100, 131 orientation, 2, 8, 19, 21, 22, 38, 74, 85, 94, 134 out-of-pocket, 102, 135, 136 oversight, ix, 15, 17, 40, 44, 45, 46, 49, 52, 54, 55, 63, 66

P Pakistan, 46, 58, 59 pandemic, 49 partnership, 16 partnerships, 47, 50 payroll, 52, 101, 105, 106, 112 PBGC, 57 penalties, 74, 83 penalty, 31 pension, 7, 33, 41, 79, 116 perception, 21 performance appraisal, 90, 94, 95, 124, 128, 131 periodic, 56 permit, vii, 1, 9, 17, 39, 40, 117 personal identity, 108 philosophical, 16 physicians, 100, 110 pipelines, 47 plague, 51 planning, 6, 7, 12, 13, 14, 19, 45, 46, 47, 51, 53, 54 plants, 50 pleasure, 63, 84, 86 policy choice, 44, 58 policy initiative, 14 policy makers, 44, 45, 58 policy making, 20 political leaders, 20, 90 political parties, 3, 11 politics, 16 poor, 51, 97 poor performance, 97 popular vote, 17, 40

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Index population, 50 population growth, 50 portfolio, 51 portfolios, 53, 70 post-traumatic stress, 49 post-traumatic stress disorder, 49 power, vii, 1, 3, 11, 13, 15, 16, 23, 29, 50, 85 powers, 15 preference, 56, 92, 93, 117 preferential treatment, 72 premium, 101, 102, 103, 135, 136, 137 premiums, 102, 105, 112, 135, 137 preparedness, 47 presidency, 13, 18, 19, 20 president, 20, 25 President Bush, 8, 16, 20 President Clinton, 2, 8, 9, 18, 40 presidential campaigns, 3 preventive, 136 prices, 52 printing, vii, 1, 30 privacy, 54, 139 private, 2, 4, 5, 6, 7, 17, 18, 25, 38, 40, 47, 49, 50, 55, 65, 69, 70, 71, 72, 75, 77, 79, 83, 109, 110, 116, 139 private sector, 47, 49, 50, 65, 75, 116, 139 private-sector, 70 production, 48, 49, 51 profit, 17, 40, 49 program, ix, 12, 19, 45, 49, 53, 55, 66, 68, 72, 73, 74, 75, 81, 90, 97, 99, 101, 102, 103, 104, 110, 123, 130, 133, 136, 137 property, iv, 72, 119 protection, 7, 41, 55, 63, 76, 81, 83, 124 PTA, vii, viii, 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 17, 37, 38, 39, 40, 41 public, 3, 6, 7, 12, 13, 14, 17, 20, 21, 25, 26, 40, 44, 49, 50, 55, 63, 65, 67, 68, 71, 72, 74, 75, 77, 78, 82, 83, 88, 95, 109, 116, 117, 129, 133, 140 public funding, 7 public funds, 6, 17, 40, 63 public health, 44, 49, 50, 140 public interest, 140 public money, 109 public policy, 12 public service, 77

Q qualifications, 75, 89, 91, 96, 97, 122, 127, 128, 129, 134

149

R race, 72, 139 radio, 16 rail, 50 range, 44, 46, 49, 51, 53, 87, 94, 95, 127, 128, 131, 133 Reagan Administration, 14, 19, 35 real estate, 52 reality, 15 recess appointment, 87, 90, 132 recognition, 49, 139 reconstruction, 47 recovery, 49, 51 recruiting, 130 redistricting, 48 redundancy, 51 reelection, 4, 45 reflection, 119 Reform Act, 46, 50 reforms, 55 regular, viii, 9, 28, 30, 32, 37, 38, 91, 92, 99, 133 regulation, 14, 46, 50, 92, 119, 128, 140 regulations, ix, 6, 54, 56, 66, 68, 72, 74, 81, 82, 83, 84, 92, 100, 110, 122, 125, 127, 128, 129, 130 rehearsing, 48 reimbursement, 102, 104 rejection, 58 relationship, 51, 54, 63, 71, 75, 82, 91, 109 relationships, 71, 78 relevance, 73 reliability, 63 religion, 72, 139 Republican, 3, 12, 13, 14, 15 reputation, 86 residential, 70, 79 resolution, 109 resources, 12, 14, 22, 44, 45, 47, 48, 49, 50, 51, 52, 53, 75, 77, 83 respiratory, 49 responsibilities, 3, 9, 11, 18, 20, 22, 45, 46, 55, 58, 63, 72, 75, 82, 91, 94, 129 responsiveness, 20 retention, 97, 100, 110, 129 retirees, 98, 104, 129 retirement, 48, 52, 55, 85, 97, 103, 104, 105, 106, 107, 112, 113, 114, 115, 125, 126, 127, 128, 132, 133, 135, 137, 138, 139 retirement age, 106, 113 returns, 107 revenue, 52, 53 risk, 47, 48, 50, 51, 54, 55, 57, 76, 105, 112 risks, viii, 43, 45, 54

Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

Index

150 Roosevelt, Franklin D., 11 royalties, 52, 70 royalty, 52 Russian, 48

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S safeguard, 77 safety, 29, 44, 49, 50, 140 salaries, 4, 6, 94, 98 salary, 79, 94, 95, 117, 127, 129, 135, 139 sample, 67, 86, 89, 92 sanctions, 81 savings, 102, 104, 114, 135, 136, 138 savings account, 102, 104, 114, 136 school, 93 Secret Service, 7, 25, 41 Secretary of Defense, 17, 18, 40, 41, 54 Secretary of State, 14, 15, 17, 18, 34, 40, 41 Secretary of Transportation, 18, 41 securities, 46, 69 security, viii, 2, 10, 14, 31, 44, 46, 47, 50, 54, 83, 90, 101, 108, 123, 132 Security Council, 108 selecting, 18, 41 separation, 22, 69, 83, 85, 86, 89, 91, 92, 94, 100, 104, 105, 106, 107, 110, 111, 112, 113, 115, 117, 123, 126, 127, 132, 133, 138, 139 series, 13, 16, 114 services, vii, viii, 1, 2, 3, 4, 5, 7, 9, 11, 17, 24, 25, 26, 28, 30, 31, 37, 38, 39, 40, 51, 52, 54, 69, 78, 81, 82, 83, 88, 93, 96, 97, 105, 107, 108, 109, 122, 128, 133, 136 SES, 56, 63, 73, 82, 84, 85, 88, 89, 90, 91, 94, 95, 98, 100, 106, 107, 109, 110, 113, 115, 116, 117, 119, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 134 severe acute respiratory syndrome (SARS), 49 sex, 72, 139 shape, 18, 47 sharing, 47, 74, 101, 103 short period, 85, 134 sine, 27 skills, 53, 55, 98, 133, 139 Social Security, 101, 104, 115, 116, 126, 135, 138, 139 software, 67, 69 space shuttle, 48 Speaker of the House, 33 spectrum, 45, 51 speech, 15, 16, 17, 40 speed, 68 spouse, 99, 102, 130, 137

stability, vii, 1, 13 stabilization, 47 staffing, 14, 84, 89, 94, 95, 116, 117, 122, 129 stages, viii, 66, 67 stakeholders, 49 standards, ix, 51, 56, 72, 76, 77, 81, 82, 108, 140 State Department, 46 statutes, 3, 78, 79, 86, 88, 128 statutory, 8, 22, 38, 55, 68, 86, 87, 90, 91, 93, 95, 109, 125, 129, 131 stock, 69 strain, 50 strategies, 44, 47, 49, 53, 73, 91 stress, 47 subsistence, 30 suffering, 87 summaries, 67, 70, 79 supervisor, 90, 124, 125, 131, 132 supervisors, 74, 75 supplemental, ix, 81, 95 supplements, 122, 135 suppliers, 48 supply, 50, 52, 65 supply chain, 52 sustainability, 44 symbolic, vii, 1 symbols, 69 systems, 22, 49, 50, 51, 56, 73, 93, 95, 96, 97, 108

T talent, 55 task force, 11, 12, 13, 14, 15 tax policy, 13 tax preferences, 53 taxes, 52, 72, 101, 115, 135 taxpayers, 51 TCC, 104 teachers, 93 teaching, 77 team members, 7, 66, 70, 76, 78 technological change, 50 telephone, 33, 65, 69, 70, 111 temporary appointment, 7, 38, 92, 101, 102, 103, 133, 135, 136, 137 Tennessee Valley Authority, 93 tenure, 89, 90, 117, 122, 133 terrorism, 47 terrorist, 108 terrorists, 51 testimony, 19, 43, 141 threat, 49, 50 threats, 2, 10, 45, 47, 51

Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,

Index threshold, 69 total expenditures, 31 tradition, 11 traffic, 55 training, vii, 1, 9, 10, 13, 21, 22, 39, 47, 68, 73, 74, 75, 81, 94, 107, 140 training programs, 75, 81, 94 transactions, 71 transfer, vii, 1, 3, 15, 23, 29, 85, 99, 114, 125, 127, 129, 130 transformation, 44, 45, 54, 58 transformations, 53, 55 transition period, 3, 5, 7, 8, 9, 11, 12, 15, 17, 18, 19, 20, 37, 40, 41, 47, 94, 131 transitions, vii, viii, 2, 3, 4, 6, 7, 8, 10, 11, 16, 17, 18, 20, 29, 32, 34, 40, 41, 43, 44, 45, 56, 84, 85, 88, 89, 90, 92, 93, 123, 134 transportation, 13, 26, 27, 50, 96, 110, 129 transportation infrastructure, 50 traumatic brain injury, 49 travel, 4, 17, 26, 27, 30, 40, 94, 96, 110, 129 Treasury, vii, 1, 2, 9, 10, 24, 31, 33, 34, 38, 39, 41, 46, 104 triggers, 129 trust, 68, 71, 77, 79 trusts, 68, 70, 71, 79

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

U U.S. Steel, 13 uncertainty, 16, 39, 48 unemployment, 107, 110, 111 unemployment insurance, 111 uniform, ix, 67, 81 United States, 10, 15, 21, 22, 23, 25, 26, 27, 28, 29, 30, 31, 33, 34, 41, 45, 46, 58, 63, 65, 77, 78, 81, 84, 117, 131, 133, 141 United States Agency for International Development (USAID), 46

151

V vacancies, 38, 86 values, 63, 74 vehicles, 30, 48 veterans, 92, 93, 117 Vice President, 2, 3, 4, 5, 6, 7, 8, 9, 13, 14, 15, 17, 18, 19, 22, 24, 25, 26, 28, 30, 31, 33, 37, 38, 40, 82, 85, 95 VIP, 103 visible, 66 vision, 50, 103, 112, 137 voice, 20 vulnerability, 50

W Wall Street Journal, 34 Washington Post, 34, 35, 41 wear, 47 welfare, 14 welfare reform, 14 well-being, 46 White House, viii, 11, 14, 15, 16, 19, 20, 23, 39, 45, 65, 66, 67, 70, 82, 88, 91, 92, 95, 127, 128 White House Office, 23, 88, 91, 127 winning, 19 wisdom, 48 withdrawal, 58, 106, 112, 114 work study, 93 workers, 105, 107 workforce, 54, 55 working groups, 15, 74 workplace, 108 writing, 73, 77, 90, 123, 125

Political Transition Process: Presidential and Congressional : Presidential and Congressional, edited by Patricia R. Eltona, Nova Science Publishers,