Washington, DC - Kay Coles James, Director of the U.S. Office of Personnel Management (OPM), in a speech delivered Tuesday night praised the efforts of human resource specialists who assisted the roll out of the Federal Long Term Care Insurance Program (FLTCIP). "We appreciate the cooperation that we have received from the agency implementation coordinators and benefits officers and payroll offices," James stated. "It is with your tremendous help that the program will be ready for rollout on July 1st."

Speaking to human resource specialists at the OPM-sponsored, 2002 Federal Benefits Conference in Norfolk, Virginia, James further stated, "With your help in getting the word out, we are confident that this innovative new program will become the largest employer-based long-term care plan in the nation. The federal government is the pacesetter in this field, and our success will encourage private employers to begin helping their employees plan for their futures as well."

James reiterated the importance of long term care insurance as a financial planning tool, "I told my children that when I applied for long-term care insurance during early enrollment that I was going to put the certificate in their Christmas stockings. My policy benefits them as much as it benefits my husband and me. Through this one act of personal responsibility, I am reducing a potential future burden on them and their families."

James stressed the importance of the federal government benefits package in attracting and retaining top performers. A recent survey by the Merit Systems Protection Board indicated that 91 percent of those who said they were planning to stay in government service listed federal benefit programs as an "important" or "very important" reason to stay. James stated, "There is a broad framework of strategic rewards that is essential to attracting and retaining employees. The benefits that you administer are an essential dimension of that overall package. So it is essential that these programs also remain cutting edge and competitive."

In addition to discussing FLTCIP, James also reiterated her guidanceto Federal Employees Benefits carriers to expect tough negotiations this year on their premiums and benefit packages. "I have put FEHB carriers on notice to expect very, very tough negotiations from OPM this year. Increases like those that have been announced for the California Public Employees' Retirement System (CalPERS) - an average of 25 percent for health maintenance organizations and 20 percent for other plans - are simply unacceptable. The carriers need to show us innovative ways to contain costs while maintaining quality."

OPM's annual Federal Benefits Conference is designed to help human resource specialists in agencies better understand the benefits available for federal employees.