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Official Involved in Bush-Era Purge of Gay Employees Now in Trump Administration

by Justin Elliott,ProPublica
April 10, 2017, 2:27 p.m.

 

It was one of the uglier scandals of the Bush administration: Top officials at an agency dedicated to protecting whistleblowers launched a campaign against their own employees based on suspected sexual orientation, according to an inspector general report.

Staffers were abruptly reassigned from Washington, D.C., to a new office 500 miles away in Detroit in what the head of the office reportedly described as an effort to “ship [them] out.” Staffers who refused were fired.

Crude anti-gay emails were found in the agency chief’s account.

Now one of the major players in the scandal has a new assignment: He works in the Trump administration.

In December, James Renne was appointed to the Trump “landing team” at the Office of the Director of National Intelligence, as part of the transition effort between the election and the inauguration. He was then hired Jan. 30 in a senior role at the Department of Agriculture, though his exact job duties are not clear.

Renne was part of the wave of early political appointees on so-called “beachhead teams,” whose role is to lay the groundwork for the new administration’s policies. (We published details on hundreds of beachhead hires, obtained through public records requests.)

In the Bush administration, Renne was hired in 2004 as deputy special counsel of the Office of Special Counsel, the small federal agency that is supposed to protect employees across the government from retaliation for whistleblowing. The tenures of Renne and his boss, Special Counsel Scott Bloch, were almost immediately mired in controversy after career employees said they were improperly fired. Language stating that job discrimination protections extend to sexual orientation also disappeared from the agency website.

A little-noticed inspector general report, released in 2013, depicts Renne as a central player in the efforts. Bloch and Renne, it found, hatched the plan to abruptly open a new “Midwest Field Office” in Detroit and reassign career staff there. Employees who declined to move lost their jobs.

The report found that the employees were targeted for no legitimate reason, pointing to “facts which reflect that Mr. Bloch and Mr. Renne may have been motivated in their actions by a negative personal attitude toward homosexuality and individuals whose orientation is homosexual.”

One evening shortly after he was hired in 2004, Renne took the lead in removing the language from the agency’s website about how job protections cover sexual orientation, the report says.

From the report: “Mr. Renne was depicted as intently searching the OSC website with the assistance of a senior career official to identify passages which interpreted [the nondiscrimination law] as extending protection to employees on the basis of their sexual orientation. According to this account, Mr. Renne demanded that OSC’s information technology manager remove these materials from the website immediately.”

That change was later the subject of congressional hearings.

Renne did not respond to requests for comment. The Department of Agriculture, which hired him, declined to comment.

The scandal at the Office of Special Counsel dragged on for years, spawning congressional and criminal investigations.

In a formal complaint filed at the time, the employees who were reassigned to Detroit pointed to a “Concerned Catholic Attorneys” letter Renne had signed in 2000 that is a broadside against a range of gay rights efforts. It warns that the “homosexual lobby’s power has grown exponentially.”

The inspector general report found that Renne played a central role in the plan to open a Detroit office, noting that “the reorganization was formulated by Mr. Bloch and Mr. Renne very early in their tenure.” An outside consultant they hired to help with the plan told investigators that “it appeared that Mr. Bloch may have been heavily influenced by Mr. Renne.”

That consultant, retired Lt. Gen. Richard Trefry, told investigators:

Mr. Bloch indicated to General Trefry that there was a sizeable group of homosexuals employed by OSC, which had developed during the years prior to his taking office, that he “had a license” to get rid of homosexual employees, and that he intended to “ship them out.”

The report continues:

Further, in the portions of Mr. Bloch’s official e-mail account that were available to the investigative team, there were crude and vulgar messages containing anti-homosexual themes that appeared to have been forwarded from his personal email. 2026 Similarly, Mr. Bloch’s public media references to [his predecessor as Special Counsel, Elaine] Kaplan contained repeated, negatively-phrased assertions regarding her sexual orientation. For example, in interviews he granted during 2007, Mr. Bloch described her as a “lesbian activist,” a “public lesbian,” a “well-known gay activist”, and similar depictions.

Now in private practice, Bloch told ProPublica the report is “filled with untruth, outright falsehoods, and innuendo.” When the report was released, Bloch denied that he ever talked about targeting gay employees.

The inspector general report says it was based on interviews with more than 60 people and examination of over 100,000 emails.

The affected employees ultimately came to a settlement with the government. The terms were not released.

During the investigation into his tenure, Bloch’s home and office were raided by the FBI and he ultimately pleaded guilty to a misdemeanor charge arising from his hiring the company Geeks on Call to do a “seven-level wipe” on his government computers. Years later, Bloch later unsuccessfully sued the government over his firing.

There’s little public record of what Renne has been doing since his time working with Bloch. The Trump landing team announcement identified him as working for Renne Law. A fellow member of the Office of the Director of National Intelligence landing team said that Renne had worked at the ODNI inspector general office. And Bloch said he also heard that Renne had gotten a job in the intelligence community after their work together. An ODNI spokesman declined to comment.

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The OPM OIG report is available to read here — DS

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OMB/OPM Issues Additional Guidance For Federal Civilian Hiring Freeze, Jan 31.2017 (Read)

Posted: 2:43 am ET

 

On January 31, Mark Sandy, Acting OMB Director, and Kathleen McGettigan, Acting OPM Director issued a joint memo which provides  additional guidance regarding the freeze on the hiring of Federal civilian employees. The hiring freeze  was directed by the President on January 23, 2017, via Presidential Memorandum entitled “Hiring Freeze.”

Item #3 lists the exemptions permitted under the Federal civilian hiring freeze. Take note of the following:

c.  Nomination and appointment of officials to positions requiring Presidential appointment, with or without Senate confirmation.

d.  Appointment of officials to non-career positions in the Senior Executive Service (SES) or to Schedule C appointments in the Excepted Service, or the appointment of any other officials who serve at the pleasure of the appointing authority (i.e., “appointed” positions of a political/non-career nature).

h.  Appointments made under the Pathways Internship and Presidential Management Fellows (PMF) Programs (this does not include the Recent Graduates Program).  Agencies should ensure that such hires understand the provisional nature of these appointments and that conversion is not guaranteed.

and

r.  The head of any agency may exempt any positions that it deems necessary to:

i.  Meet national security (including foreign relations) responsibilities, or

ii.  Meet public safety responsibilities (including essential activities to the extent that they protect life and property).  Agencies may refer to longstanding guidance, which provides examples of such activities in OMB Memorandum, Agency Operations in the Absence of Appropriations, dated 11/17/1981 [see examples 3(a) to 3(k)].

Note that the memo ends with the following:  The guidance in this memorandum is effective immediately.  Within 90 days of the publication of the PM issued on January 23, 2017, the Director of OMB, in consultation with the Director of OPM, shall recommend a long-term plan to reduce the size of the Federal Government’s workforce through attrition.  The hiring freeze will expire upon implementation of the OMB plan.

The original memo is here or read in full below (click on lower right hand corner arrow to maximize reading space).

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OMB Issues Initial Guidance For Federal Civilian Hiring Freeze (Read Memo)

Posted: 2:34 pm PT
Updated: 3:52 pm PT
Updated: 5:09 pm PT  (correction memo from OMB not OPM)

 

The following guidance memo from OPM OMB via Federal News Radio includes some guidance following President Trump’s memorandum on the federal hiring freeze (see President Trump Freezes Federal Hiring Regardless of Funding Sources (Read Memo).  Of relevance to Foreign Service candidates expected to start classes in March, the OMB memo says that “an individual who has received a job offer/appointment prior to January 22, 2017, and who has received documentation from the agency that specifies a confirmed start date on or before January 22, 2017 February 22, 2017 should report to work on that start date.”

We’ve checked with the State Department about the hiring freeze, as well as impact on EFM and WAE jobs. We will update this if we get an official response.  The official response from the State Department refers us back to the White House. 

 

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New Executive Order Provides Limited Non-Career Appointees a Pathway to the Competitive Service

Posted: 2:23 pm ET

 

On November 29, President Obama signed an executive order that allows the appointment of certain limited non-career appointees into the competitive service.  The E.O says “the head of any agency in the executive branch may appoint in the competitive service an individual who served for at least 48 months of continuous service in the Foreign Service of the Department of State under a Limited Non-Career Appointment under section 309 of the Foreign Service Act of 1980, and who passes such examination as the Office of Personnel Management (OPM) may prescribe.”  It looks like LNAs can be appointed to any civil service position at any agency but does not provide for their appointment into the Foreign Service.

Republished below in full, the original text is available here.

PROVIDING FOR THE APPOINTMENT IN THE COMPETITIVE SERVICE OF CERTAIN EMPLOYEES OF THE FOREIGN SERVICE
BARACK OBAMA
THE WHITE HOUSE
November 29, 2016.

By the authority vested in me as President by the Constitution and the laws of the United States of America, including sections 3301 and 3302 of title 5, United States Code, and section 301 of title 3, United States Code, it is hereby ordered as follows:

Section 1. Policy. The Federal Government benefits from a workforce that can be recruited from the broadest and deepest pools of qualified candidates for our highly competitive, merit-based positions. The recruitment and retention of workforce participants who serve in the Foreign Service of the Department of State under a Limited Non-Career Appointment under section 309 of the Foreign Service Act of 1980, Public Law 96-465 (22 U.S.C. 3949), as amended, are critical to our ability to meet consular staffing levels (now in substantial deficit) and thereby enhance our capacity to meet high national security standards and efficiently process visas in accordance with our policy of “open doors, safe borders.” Program participants undergo a rigorous merit-based evaluation process, which includes a written test and an oral assessment and to which a veteran preference applies, and develop advanced- to superior-level skills in languages and in cultural competence in particular regions, skills that are essential for mission-critical positions throughout the entire Federal workforce.

Accordingly, pursuant to my authority under 5 U.S.C. 3302(1), and in order to achieve a workforce that represents all segments of society as provided in 5 U.S.C. 2301(b)(1), I find that conditions of good administration make necessary an exception to the competitive hiring rules for certain positions in the Federal civil service.

Sec. 2. The head of any agency in the executive branch may appoint in the competitive service an individual who served for at least 48 months of continuous service in the Foreign Service of the Department of State under a Limited Non-Career Appointment under section 309 of the Foreign Service Act of 1980, and who passes such examination as the Office of Personnel Management (OPM) may prescribe.

Sec. 3. In order to be eligible for noncompetitive appointment to positions under section 2 of this order, such an individual must:

(a) have received a satisfactory or better performance rating (or equivalent) for service under the qualifying Limited Non-Career Appointment; and

(b) exercise the eligibility for noncompetitive appointment within a period of 1 year after completion of the qualifying Limited Non-Career Appointment. Such period may be extended to not more than 3 years in the case of persons who, following such service, are engaged in military service, in the pursuit of studies at an institution of higher learning, or in other activities that, in the view of the appointing authority, warrant an extension of such period. Such period may also be extended to permit the adjudication of a background investigation.

Sec. 4. A person appointed under section 2 of this order shall become a career conditional employee.

Sec. 5. Any law, Executive Order, or regulation that would disqualify an applicant for appointment in the competitive service shall also disqualify a person for appointment under section 2 of this order. Examples of disqualifying criteria include restrictions on employing persons who are not U.S. citizens or nationals, who have violated the anti-nepotism provisions of the Civil Service Reform Act, 5 U.S.C. 2302(b)(7), 3110, who have knowingly and willfully failed to register for Selective Service when required to do so, 5 U.S.C. 3328(a)(2), who do not meet occupational qualifying standards prescribed by OPM, or who do not meet suitability factors prescribed by OPM.

Sec. 6. The Office of Personnel Management is authorized to issue such additional regulations as may be necessary to implement this order. Any individual who meets the terms of this order, however, is eligible for noncompetitive eligibility with or without additional regulations.

Sec. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department, agency, or the head thereof, or the status of that department or agency within the Federal Government; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

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New Executive Order Provides Certain USG Program Alumni a Pathway to Competitive Service

Posted: 2:07 pm ET

 

On November 29, President Obama signed an executive order that allows the appointment of alumni of the Fulbright, Gilman, and CLS programs into the Federal civil service.  Republished below in full, the original text is available here.

EXECUTIVE ORDER

– – – – – – –
PROVIDING FOR THE APPOINTMENT OF ALUMNI OF THE FULBRIGHT U.S. STUDENT PROGRAM, THE BENJAMIN A. GILMAN INTERNATIONAL SCHOLARSHIP PROGRAM, AND THE CRITICAL LANGUAGE SCHOLARSHIP PROGRAM TO THE COMPETITIVE SERVICE

BARACK OBAMA
THE WHITE HOUSE
November 29, 2016

By the authority vested in me as President by the Constitution and the laws of the United States of America, including sections 3301 and 3302 of title 5, United States Code, and section 301 of title 3, United States Code, it is hereby ordered as follows:

Section 1. Policy. The Federal Government benefits from a workforce that can be recruited from the broadest and deepest pools of qualified candidates for our highly competitive, merit-based positions. The issuance of an order granting Non-Competitive Eligibility (NCE) to certain alumni of the Fulbright U.S. Student Program, the Benjamin A. Gilman International Scholarship Program, and the Critical Language Scholarship (CLS) Program, all of which are academic exchange programs carried out under the authorities of the Mutual Educational and Cultural Exchange Act of 1961, Public Law 87-256, as amended, also known as the Fulbright-Hays Act, and the International Academic Opportunity Act of 2000, title III of Public Law 106-309, would be in the best interest of the Federal Government. Participants in these programs develop advanced- to superior-level skills in languages and cultural competence in regions that are strategically, diplomatically, and economically important to the United States. It is in the interest of the Federal Government to retain the services of these highly skilled individuals, particularly given that the Federal Government aided them in the acquisition of their skills. Participants in the Fulbright, Gilman, and CLS programs are drawn from highly competitive, merit-based national selection processes to which a veterans’ preference applies to ensure that the most qualified individuals are selected.

Accordingly, pursuant to my authority under 5 U.S.C. 3302(1), and in order to achieve a workforce that is drawn from all segments of society as provided in 5 U.S.C. 2301(b)(1), I find that conditions of good administration make necessary an exception to the competitive hiring rules for certain positions in the Federal civil service.

Sec. 2. Establishment. The head of any agency in the executive branch may appoint in the competitive service any person who is certified by the Secretary of State or designee as having participated successfully in the Fulbright, Gilman, or CLS international exchange programs, and who passes such examination as the Office of Personnel Management (OPM) may prescribe.

Sec. 3. The Secretary of State or designee shall issue certificates, upon request, to persons whom the Department of State determines have completed the requirements of a program described in section 1 of this order.

Sec. 4. Any appointment under this order shall be effected within a period of 1 year after completion of the appointee’s participation in the programs described in section 1. Such period may be extended to not more than 3 years for persons who, following participation in the programs described in section 1, are engaged in military service, in the pursuit of studies at an institution of higher learning, or in other activities which, in the view of the appointing authority, warrant an extension of such period. Such period may also be extended to permit the adjudication of a background investigation.

Sec. 5. A person appointed under section 2 of this order becomes a career conditional employee.

Sec. 6. Any law, Executive Order, or regulation that would disqualify an applicant for appointment in the competitive service shall also disqualify an applicant for appointment under this order. Examples of disqualifying criteria include restrictions on employing persons who are not U.S. citizens or nationals, who have violated the anti-nepotism provisions of the Civil Service Reform Act, 5 U.S.C. 2302(b)(7), 3110, who have knowingly and willfully failed to register for Selective  Service when required to do so, 5 U.S.C. 3328(a)(2), who do not meet occupational qualifying standards prescribed by OPM, or who do not meet suitability factors prescribed by OPM.

Sec. 7. The Office of Personnel Management is authorized to issue such additional regulations as may be necessary to implement this order. Any individual who meets the terms of this order, however, is eligible for noncompetitive hiring with or without additional regulations.

Sec. 8. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i)  the authority granted by law to an executive department, agency, or the head thereof, or the status of that department or agency within the Federal Government; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

 

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OPM: Guidance For Agency-Specific Domestic Violence, Sexual Assault, and Stalking Policies

Posted: 12:30 am ET

 

Via OPM:

One in 5 women and 1 in 71 men have been raped at some point in their lifetimes, and nearly 1.3 million women in the U.S. are raped every year. The statistics are sobering – even more so with our understanding that these types of crimes are often the most underreported. It is important to note that victims may experience one of these forms of violence or all three at the same time. Although women are the majority of victims, as the above statistics show, men can also become victims. In addition, these crimes affect people of all backgrounds, including race, income, religion, sexual orientation, gender identity, age, disability, etc.

Sexual Assault

Sexual assault refers to a range of behaviors, including but not limited to, a completed nonconsensual sex act (e.g., rape, sodomy, child molestation), an attempted nonconsensual sex act, and/or abusive sexual contact. Sexual assault includes any sexual act or behavior that is perpetrated when someone does not or cannot consent. A victim of sexual assault may know the perpetrator, such as a co-worker or a supervisor, and/or may be involved in a dating or marital relationship with the perpetrator, or the perpetrator may be unknown to the victim. Lack of consent should be inferred when a perpetrator uses force, harassment, threat of force, threat of adverse personnel or disciplinary action, or other coercion, or when the victim is asleep, incapacitated, unconscious, or physically or legally incapable of consent.

Below is an excerpt from OPM’s guidance for agency-specific domestic violence, sexual assault, and stalking policies:

Domestic violence, sexual assault, and stalking have the potential to affect every Federal workplace across the United States. It is the policy of the Federal Government to promote the health and safety of its employees by acting to prevent domestic violence, sexual assault, and stalking within the workplace and by providing support and assistance to Federal employees whose working lives are affected by such violence.

This Guidance for Agency-Specific Domestic Violence, Sexual Assault, and Stalking Policies provides agencies with direction to enable them to fulfill the goals identified in the Presidential Memorandum on “Establishing Policies for Addressing Domestic Violence in the Federal Workforce,” which was issued on April 18, 2012. As the nation’s largest employer, the Federal Government should act as a model in responding to the effects of domestic violence, sexual assault, and stalking in the workplace. Some agencies have already taken steps to address these issues. By building on these efforts, the Federal Government can further address the effects of domestic violence, sexual assault, and stalking on its workforce, promoting the health and safety of its employees and improving the quality of its service to the public.

Read more below:

The State Department does not/does not have a published sexual assault or stalking policies.  Browsing state.gov shows that the State Department does asks: What is the United States’ Role in Addressing Sexual Violence in Libya and Syria? Also this: Evaluation of Implementation of the United States Strategy to Prevent and Respond to Gender-Based Violence Globally, August 2012 to August 2015. And many more reports related to sexual assault and gender violence elsewhere.

But.

It does not have a published sexual assault and stalking policies for its employees/family members that are publicly available.

An FSO who is sexually assaulted has no easy way to determine the reporting process.  And if a family member not employed at post is assaulted, he/she does not have access to the State Department intranet. Whatever Diplomatic Security cable guidance reside behind the firewall (we’re looking for three cables), their contents could also be useless to sexual assault victims who have no state.gov accounts. So some questions:

  • Was an analysis of the agency’s current ability to handle incidents related to domestic violence, sexual assault, and stalking in its workforce ever conducted as called for by the OPM guidance (see below)? What does this ability look like within an agency with over 275 locations worldwide?
  • OPM called for reporting procedures that provide an effective, confidential, and accessible way for employees to report incidents and concerns. Because the credibility of any reporting procedure will depend on the extent to which reports are handled quickly and efficiently, agency staff responsible for responding to reported incidents should be trained and prepared to handle any such reports. OPM says that agencies should recognize and respect a victim’s right to privacy and the need for confidentiality and autonomy.  According to OPM, the agency should make every effort to provide advance notice to the employee who disclosed information about the fact that the information will be disclosed, with whom it will be disclosed, and why. The agency should also provide the employee with the names and titles of the people with whom the agency intends to share the employee’s statements and should explain the necessity and purpose of that disclosure. What kind of procedure exists at the State Department? What level of confidentiality is extended to sexual assault victims?
  • OPM said that agencies should develop plans that specify which offices will generally respond to different types of incidents and who will be responsible for different aspects of incident responses.  Which offices at State are tasked to do this?
  • What types of workplace flexibilities are available to an employee when the employee and/or the employee’s family member(s) are victims of domestic violence, sexual assault, or stalking?
  • What does the State Department do with employees who are perpetrators and employees who are victims? Since the Office of Special Investigations receives and catalogues allegations and complaints but neither categorized them by location nor by alleged offense, who actually knows how many sexual assaults and domestic violence have occurred in the Foreign Service?

Click here to see the State Department’s Sexual Harassment Policy via the Office of Civil Rights.

For domestic violence, see 3 FAM 1810 | FAMILY ADVOCACY PROGRAM (Child Abuse, Child Neglect, Domestic Violence).

Nada for sexual assault.

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OPM Hack Victims Must Re-Enroll Starting December 1 to Keep Monitoring Services

Posted: 12:37 am ET

 

Some former and current federal employees whose personal data was compromised in the OPM data breach will have to re-enroll starting December 1 to continue receiving monitoring protection from a USG contractor. OPM doesn’t say what will happen to the data, feds and former feds have already submitted to CSID, but folks who have enrolled in that service will no longer have access to their CSID account when that contract expires on December 1. The Government Executive is reporting that as many as 600,000 individuals impacted by the initial hack will need to re-enroll to continue monitoring services through ID Experts. How is it that CSID is not able to port data over to ID Experts? Below from OPM:

OPM is announcing a change to the credit monitoring and identity protection service provider that will affect a subset of individuals impacted by the personnel records cyber incident announced in the summer of 2015. Most impacted individuals will not experience any change to their current coverage, and do not need to take any action, but a subset of individuals will need to re-enroll to continue coverage.

OPM currently uses two different companies to provide credit monitoring and identity protection services free of charge to impacted individuals. Winvale/CSID covers the 4.2 million individuals impacted by the personnel records cyber incident and ID Experts (MyIDCare) covers the 21.5 million individuals impacted by the background investigations cyber incident. As of December 1, coverage under Winvale/CSID will expire.

Credit monitoring and identity protection services from Winvale/CSID expire on December 1, 2016. Once services with Winvale/CSID expire, you will no longer have access to information in your Winvale/CSID account. If you wish to review or print your credit reports or other monitoring information from your Winvale/CSID account, please log in to your account prior to December 1.

As of December 2, 2016 all individuals impacted by either incident will be eligible for coverage through ID Experts (MyIDCare).

According to OPM, individuals currently covered by ID Experts (MyIDCare) will not experience a change in their coverage or service at this time and do not need to take any action. More:

Starting December 1, individuals previously covered by Winvale/CSID will be offered services through IDExperts (MyIDCare). Impacted individuals will also still be automatically covered by identity restoration and identity theft insurance, but you will need to re-enroll with ID Experts (MyIDCare) if you would like to continue to receive monitoring services.

Most of the individuals covered by Winvale/CSID were also impacted by the background investigation records cyber incident. These individuals should already have received a letter from OPM inviting them to enroll in services with ID Experts (MyIDCare) and providing them with a 25-digit PIN code.

If you previously received a notification letter in connection with the background investigation records incident and wish to enroll with ID Experts (MyIDCare) now, you will need to use the 25-digit PIN code provided in this letter. Click here if you have your 25-digit PIN code and wish to enroll now.

If you believe you previously received a notification letter in connection with the background investigation records incident, but no longer have your original notice, you can visit the Verification Center to obtain a duplicate copy by U.S. Postal Service.

If you are in the subset of individuals who were not impacted by the background investigations incident, you will be receiving a new notification letter from OPM via the U.S. Postal service with a 25-digit PIN that you can use to enroll with ID Experts (MyIDCare). We expect to mail the majority of these notifications in November 2016.

Note that OPM makes clear that ID Experts cannot enroll victims without the 25-digit PIN code and cannot provide former/current employees with a PIN code over the phone.

Read more here: https://www.opm.gov/cybersecurity/ and https://www.opm.gov/cybersecurity/personnel-records/.

And while you’re reading how to re-enroll, you might want to read about grafted fingerprints and hackers’ long term intention, because why not?  If the data has not surfaced for sale, we have to wonder what was that hack about?

 

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Decision Window For Federal Long Term Care Insurance With Shocking Premium Hike Closes 9/30/16

Posted: 3:01 am ET

 

Excerpted from CRS Insight (PDF), September 2016 via Secrecy News:

On July 16, 2016, the U.S. Office of Personnel Management (OPM) announced a premium rate increase for long-term care insurance policies purchased through the Federal Long Term Care Insurance Program (FLTCIP). The new rates were established following an open competitive bidding process. That process awarded a new seven-year contract to the prior insurer and sole bidder, John Hancock Life & Health Insurance Company, to continue providing coverage. According to OPM, the higher premiums are based on an analysis that used updated assumptions of industry trends and claims experience. The analysis determined that current FLTCIP premiums were not sufficient to meet projected costs and benefits. Most federal workers enrolled in FLTCIP are affected by the premium increase (an estimated 264,000 of the 274,000 enrollees).

During OPM’s 2016 Enrollee Decision Period, enrollees affected by the rate increase have until September 30, 2016, to decide whether to:

(1) keep their current coverage and pay the increase;
(2) reduce coverage in order to maintain their current premium; or
(3) allow their policies to lapse (i.e., drop coverage in the program).

Rate increases are scheduled to take effect November 1, 2016.
[…]
According to news sources, premiums are expected to increase by 83%, on average. Some Members of Congress have expressed their concerns to OPM leadership and John Hancock about such dramatic increases, calling for more time for enrollees to assess options as well as for congressional hearings on the issue.

Rate Stability and Long-Term Care Insurance

Federal workers are not the only policyholders to face LTCI premium increases. Over the past two decades, annual LTCI premiums have increased significantly overall for both current and new policyholders. Higher average premiums reflect increased demand for more comprehensive benefit packages (including inflation protection) and higher daily benefit amounts. Premium increases have also been driven by inadequate medical underwriting, premiums that were initially set too low, and insufficient growth in reserves to cover future claims. Thus, premium or rate stability depends largely on the ability of insurers to adequately predict future claims. Most policies issued before the mid-2000s have incorrectly predicted claims, necessitating changes to key pricing assumptions. For example, rising claims, lower mortality rates, lower-than-predicted voluntary termination (lapse) rates, and lower-than-predicted rates of return on investments have been cited as key reasons for LTCI premium increases. Nevertheless, large rate increases, such as those proposed by the FLTCIP, are likely to have a continued effect on consumer confidence in these products, possibly leading to further reductions in consumer demand.

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OPM’s Security Clearance Backlog Now At 500,000+ Govt-Wide

Posted: 4:14 am ET

 

The State Department recently sent an agency-wide message from the Under Secretary for Management which provide timelines for job applicants and employees who are in the process of applying or renewing their security clearances. The Bureau of Diplomatic Security adjudicates security clearances and renewals for all State Department employees but we understand that contractors are mostly processed by the Office of Personnel Management (OPM).  The message notes that OPM currently has a backlog of more than 500,000 clearances government-wide.

In terms of length of adjudication, apparently 60% of the Department’s initial Top Secret investigations are completed within six months while 66% of its initial Secret investigations are completed in four months. When compared government-wide, the Department adjudicates security clearances much faster than the government-wide average. So that’s good, except, of course, if you’re the one waiting for it, six months is a loooong time. We don’t know what is the average wait time for the remaining 40% awaiting their TS clearance or the 34% awaiting for their Secret clearance?

But the OPM backlog of more than 500,000 clearances government-wide? Not so good.  With a new administration transitioning in next year, waiting for a security clearance may just be like Beetlejuice waiting at the DMV without an appointment.

Via reactiongifs.com

Via reactiongifs.com

In related news, OPM is also in the news because the House Oversight and Reform Committee released its report yesterday on The OPM Data Breach: How the Government Jeopardized Our National Security for More than a Generation (read PDF or read below).  The report details the  exfiltration by two hacking teams of the security background data on 21.56 million individuals, the personnel files of 4.2 million former and current US government employees and the fingerprints for 5.6 million of them.

You will not be surprised to hear that OPM/OIG has warned since at least 2005 that the information maintained by OPM was vulnerable to hackers. US-CERT had also warned the department of a malware  operating on its servers in 2012, and again in 2014, CERT warned that a hacker had managed to get information out of the OPM servers. The report notes that the damage could have been mitigated if the security of the sensitive data in OPM’s critical IT systems had been prioritized and secured.

Read the report here:

 

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Metro Shuts Down Wednesday, OPM Allows Telework/Unscheduled Leave #Metropocalypse

Posted: 3:04 am EDT

 

 

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