News Release

FOR IMMEDIATE RELEASE July 11, 2003

Contact: Mike Orenstein (202) 606-2402

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Agencies Respond Overwhelmingly to OPM Director's Call to Pay Employee FSA Fees

111 agencies will pay the FSA fees for their employees

Washington, D.C. - Nearly all of the 1.8 million federal public servants who are eligible to open flexible spending accounts will have the administrative fees associated with the program paid by their agencies.

Agency decisions on the fees were transmitted to the U.S. Office of Personnel Management by the end of the FSA open season processing period. The decision to pay the fees is in keeping with the Bush Administration's desire to provide federal employees with an FSA program that mirrors the best private-sector programs.

The Administration's position on fee payment also was made clear in a message sent by OPM Director Kay Coles James to agency heads.

In the June 13 memo, James noted the importance of letting employees keep as much of "their hard-earned money" as possible, and she asked that agencies pay the "modest" fees because "it's the right thing to do."

"Agencies responded in an enthusiastic manner, and employees have a better FSA program as a result," said James. "At a time when each and every American has a stake in the federal government's ability to attract, hire and retain the best possible people, it is important that we enhance the value of our benefit programs."

In the memo, James noted that even with the payment of fees, agencies will accrue saving as a result of reduced payroll taxes.

Under the program which begins July 1, employees can make annual, pre-tax salary contributions to a health-care FSA, a dependent-care FSA, or both. The amount allocated to each -- up to $3,000 in a health-care FSA and up to $5,000 in a dependent-care FSA -- reduces the employee's taxable income by the total dollars contributed.

The flexible spending account program for federal employees is funded solely from pre-tax allotments from employee salaries. Monies in the accounts can be used to pay qualifying, non-covered medical expenses and dependent-care costs.

Please see the following list of agencies that will pay the FSA fees.

AGENCIES THAT HAVE AGREED TO PAY FSA ADMINISTRATIVE FEES:

ADVISORY COUNCIL ON HISTORIC PRESERVATION

AFRICAN DEVELOPMENT FOUNDATION

AGENCY FOR INTERNATIONAL DEVELOPMENT

AMERICAN BATTLE MONUMENT COMMISSION

APPALACHIAN REGIONAL COMMISSION

APPRAISAL SUBCOMMITTEE/FEDERAL FINANCIAL INSTITUTE EXAM COUNCIL

ARCHITECT OF THE CAPITOL

ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD

ARCTIC RESEARCH COMMISSION

BONNEVILLE POWER ADMINISTRATION

BROADCASTING BOARD OF GOVERNORS

CENTRAL INTELLIGENCE AGENCY

COMMISSION OF FINE ARTS

COMMISSION ON SECURITY AND COOPERATION IN EUROPE

COMMITTEE FOR PURCHASE FROM THE BLIND & SEVERELY DISABLED

COMMODITY FUTURES TRADING COMMISSION

CONGRESSIONAL BUDGET OFFICE

CONSUMER PRODUCT SAFETY COMMISSION

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

COURT SERVICES & OFFENDER SUPERVISION AGENCY

COURT SERVICES & OFFENDER SUPERVISION AGENCY - Pretrial Services Agency

DEFENSE NUCLEAR FACILITIES SAFETY BOARD

DEPARTMENT OF AGRICULTURE

DEPARTMENT OF COMMERCE

DEPARTMENT OF EDUCATION

DEPARTMENT OF ENERGY

DEPARTMENT OF HEALTH AND HUMAN SERVICES

DEPARTMENT OF HOMELAND SECURITY

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

DEPARTMENT OF INTERIOR

DEPARTMENT OF JUSTICE

DEPARTMENT OF LABOR

DEPARTMENT OF STATE

DEPARTMENT OF TRANSPORTATION

DEPARTMENT OF TRANSPORTATION - St. Lawrence Seaway Development Corp

DEPARTMENT OF TRANSPORTATION -- Surface Transportation Board

DEPARTMENT OF TREASURY

ENVIRONMENTAL PROTECTION AGENCY

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

EXECUTIVE OFFICE OF THE PRESIDENT

EXECUTIVE RESIDENCE-WHITE HOUSE

EXPORT / IMPORT BANK OF THE U.S.

FEDERAL COMMUNICATIONS COMMISSION

FEDERAL ELECTION COMMISSION

FEDERAL ENERGY REGULATORY COMMISSION

FEDERAL HOUSING FINANCE BOARD

FEDERAL LABOR RELATIONS AUTHORITY

FEDERAL MARITIME COMMISSION

FEDERAL MEDIATION AND CONCILIATION BOARD

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

FEDERAL TRADE COMMISSION

GENERAL ACCOUNTING OFFICE

GENERAL SERVICES ADMINISTRATION

GOVERNMENT PRINTING OFFICE

HARRY S. TRUMAN SCHOLARSHIP FOUNDATION

INSTITUTE OF MUSEUM AND LIBRARY SERVICES

INTER-AMERICAN FOUNDATION

INTERNATIONAL BOUNDARY WATER COMMISSION

INTERNATIONAL TRADE COMMISSION

JAMES MADISON MEMORIAL FOUNDATION

JAPAN-U.S. FRIENDSHIP COMMISSION

KENNEDY CENTER FOR THE PERFORMING ARTS

LIBRARY OF CONGRESS

MARINE MAMMAL COMMISSION

MEDICARE PAYMENT ADVISORY COMMISSION

MERIT SYSTEMS PROTECTION BOARD

MORRIS K. UDALL SCHOLARSHIP FUND

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

NATIONAL ARCHIVES & RECORDS ADMINISTRATION

NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE

NATIONAL COMMISSION ON TERRORIST ATTACKS ON THE UNITED STATES

NATIONAL COUNCIL ON DISABILITY

NATIONAL CREDIT UNION ADMINISTRATION

NATIONAL ENDOWMENT FOR THE ARTS

NATIONAL ENDOWMENT FOR THE HUMANITIES

NATIONAL GALLERY OF ART

NATIONAL LABOR RELATIONS BOARD

NATIONAL MEDIATION BOARD

NATIONAL SCIENCE FOUNDATION

NATIONAL TRANSPORTATION SAFETY BOARD

NUCLEAR REGULATORY COMMISSION

NUCLEAR WASTE TECHNICAL REVIEW BOARD

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION

OFFICE OF COMPLIANCE

OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT

OFFICE OF GOVERNMENT ETHICS

OFFICE OF NAVAJO AND HOPI INDIAN RELOCATION

OFFICE OF PERSONNEL MANAGEMENT

OFFICE OF SPECIAL COUNSEL

PEACE CORPS

PENSION BENEFITS GUARANTEE CORPORATION

PUBLIC DEFENDER SERVICE FOR THE DISTRICT OF COLUMBIA

RAILROAD RETIREMENT BOARD

SECURITIES AND EXCHANGE COMMISSION

SELECTIVE SERVICE SYSTEM

SMALL BUSINESS ADMINISTRATION

SMITHSONIAN INSTITUTION

STENNIS CENTER FOR PUBLIC SERVICE

U.S. BOTANIC GARDEN

U.S. CAPITOL POLICE

U.S. CHEMICAL SAFETY AND HAZARD INVESTIGATION BOARD

U.S. CHINA SECURITY REVIEW COMMISSION

U.S. COMMISSION ON CIVIL RIGHTS

U.S. COURT OF APPEALS FOR VETERANS CLAIMS

U.S. HOLOCAUST MEMORIAL MUSEUM

U.S. INSTITUTE OF PEACE

U.S. SENATE

U.S. TAX COURT

U.S. TRADE AND DEVELOPMENT AGENCY

WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS

OPM oversees the federal work force and provides the American public with up-to-date employment information. OPM also supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.

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