December 2006: In November, responding to issues raised by Chapter 293 leadership concerning the agency’s recent unilateral cutbacks to the Student Loan Repayment Program, the SEC reversed course and issued new notices to a number of affected employees, increasing their loan repayment disbursements. In many cases, these employees will now receive thousands of dollars in additional benefits that the agency previously had denied.

Under the program, the agency repays up to $10,000 of the student loans of eligible employees each year, up to a maximum amount of $60,000. In return, recipients must agree to remain at the Commission for an additional three years.

During the summer, the SEC unilaterally determined that it would deny or greatly reduce repayment benefits for employees who had less than $10,000 in remaining student loan debt. The agency also announced that it would deny benefits to employees who, as a result of last year’s repayments under the program, were relieved of their obligation to continue making regular monthly payments to their student loan lender for some or all of the past year.

NTEU responded by filing a national grievance challenging the agency’s unilateral cutbacks on several grounds, and employees directly affected by the cutbacks also filed individual grievances. In addition, Chapter 293 President Greg Gilman discussed the union’s concerns regarding these changes with senior management officials at the agency. As a result of these efforts, management consulted with OPM, reconsidered its position and directed that amended program notifications be sent out to affected employees.

Chapter 293 leaders applauded senior management’s decision to change course on these issues. “We are pleased that the agency has reconsidered its original course of action with respect to the Student Loan Repayment Program this year,” said Gilman. “It is our hope that, in the future, SEC management will choose to engage in constructive dialogue with Chapter 293 officials regarding issues of this nature.”

If your Student Loan Repayment Program application this year was originally limited or denied as a result of one of these proposed changes, please let the union know if you have not received an amended notification, by contacting HQ Head Steward Katie Nix or Regional Head Steward Marshall Gandy.

In related news, the issue of the SEC’s denial of Student Loan Repayment Program applications for PLUS Loans remains unresolved. NTEU and the SEC submitted post-hearing briefs to Arbitrator Sharnoff on this issue on September 15, 2006. The parties are continuing to wait for a decision, which should be issued soon.