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FDIC Asks Congress for Separate Personnel Authority

By Ralph Smith

Friday, September 3, 2004

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The early part of our new century may be remembered in government as the era for destruction of a unified federal civil service system. The Department of Homeland Security now has its own personnel system as does the Department of Defense. NASA also has new authority in the human resources arena. GAO has a new human resources system.

Wiill there be any federal government agency that does not want its own human resources structure and authority?

The Federal Deposit Insurance Corporation (FDIC) wants to be next and has requested Congress to grant the agency its own personnel authority.

"We are asking Congress to give us the tools we need to address the continually changing financial services industry," said Donald Powell, Chairman, FDIC. "We must have the ability to focus our resources where they are most needed. In order to address variable workloads, we need independent hiring authority, greater flexibility in using term appointments, and the ability to employ experts and consultants and to re-employ retirees."

The proposal would give FDIC authority to:

* have independent hiring authority;
* hire a term employee and convert the employee to a permanent appointment;
* rehire and pay retired Federal annuitants without those annuitants suffering a reduction of their annuities during the course of their employment;
* hire highly qualified experts and consultants rapidly and for longer periods of time than ordinarily allowed for Federal agencies;
* have similar latitude in hiring its executives as the Federal government has generally to hire employees in the Senior Executive Service (SES);
* develop its own reduction-in-force and early-out regulations in connection with determinations to realign, reorganize, or reduce the FDIC's workforce;
* establish its own appeals process for employees subject to misconduct or unsatisfactory performance disciplinary actions, consistent with merit and fitness principles.

For more information, check out the links on the left hand side of the page.

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Readers' Comments

  • Most current FDIC employees are examiners, and very few examiners are former employees of failed banks. Most examiners were recruited right out of college. The failed bankers of which you speak mostly went into the liquidation and resolutions divisions during the 90's as term employees. There's n...
    Posted: July 27, 2005 3:40 PM
  • Oh Boy!! I worked for these FDIC quasi feds some years ago and know that they don't even follow the current OPM regulations at all!! Giving them autonomy is ridiculous. They need to go the other way. Most folks don't know that most FDIC employees are former Bankers who lost their jobs when their Sav...
    Posted: January 8, 2005 12:12 PM
  • FDIC as with other federal agencies, already have the tools and authorities to successfully recruit, place, develop and promote "the best and brightest". The problem is the lack of experienced personnelists in federal personnel rules, regulations, exceptions, etc. Agencies now have what they wante...
    Posted: September 3, 2004 12:08 PM

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