October 2019 NARFE Magazine by NARFE

OCT

’19

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WASHINGTON WATCH

New WEP Reform Bill Introduced

What Is the Debt Ceiling?

Telling Your Story With Passion

Congress Increases Spending Caps, Beginning the FY20 Appropriations Process

The Creation of the Merit-Based Civil Service

Bill Tracker

COLUMNS

COVER STORY TSP UPDATE: Cloud Spurlock of the Thrift Savings Plan outlines the new, more flexible withdrawal options available to account holders.

From the President

38 Managing Money DEPARTMENTS

Questions & Answers

40 For the Record 42 NARFE News

OPEN SEASON PREVIEW: Check out this important information about the upcoming plan year and how to get ready for Open Season 2019.

46 Member Perks 48 The Way We Worked

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NEW TSP WITHDRAWAL OPTIONS OFFER LONG-TERM VALUE Volume 95 • Number 10

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W W W. N A R F E . O R G

OCTOBER 2019 | Volume 95 | Number 10

EDITORIAL DIRECTOR Helen Mosher SENIOR EDITOR Mabel Yu COMMUNICATIONS ASSISTANT Precious Dorch-Robinson GRAPHIC DESIGN GRAPHEK Beth Bedard EDITORIAL BOARD Kenneth J. Thomas, Kathryn E. Hensley, Barbara Sido CONTACT US NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Editorial: communications@narfe.org Advertising Sales: Anita Nelson advertising@narfe.org

NARFE FOR THE VISUALLY IMPAIRED ON THE TELEPHONE: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-504-7300 or go to www.nfbnewsline.org. ON DIGITAL AUDIO: Issues of NARFE Magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider. The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

NATIONAL OFFICERS KENNETH J. THOMAS President; natpres@narfe.org KATHRYN E. HENSLEY Secretary/Treasurer; natsectreas@narfe.org EXECUTIVE DIRECTOR BARBARA SIDO, execdir@narfe.org

REGIONAL VICE PRESIDENTS

REGION I James C. Risner (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) TEL: 207-540-6233 EMAIL: rvp1@narfe.org REGION II Kathy Adams (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) TEL: 302-697-6650. CELL: 302-561-5660 EMAIL: adamskhawaii@aol.com REGION III Clarence Robinson (Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 EMAIL: crobin8145@att.net

REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: pappysdad@cobridge.tv REGION VII Rodney L. Adelman (Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: narfe7vp@cox.net REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) TEL: 707-644-7565 EMAIL: HLZajac125@gmail.com

REGION IV Robert L. Helfrich (Illinois, Indiana, Michigan, Ohio and Wisconsin) TEL: 317-501-1700 EMAIL: rvp4@narfe.org

REGION IX Richard Wilson (Alaska, Idaho, Montana, Oregon and Washington) TEL: 253-210-5609, CELL: 425-736-6899 EMAIL: narfe1404@comcast.net

REGION V Cindy Reneé Blythe (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) TEL: 785-256-1450 EMAIL: mrsdocbusyb@yahoo.com

REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) TEL: 703-830-6590, CELL: 703-201-6304 EMAIL: RVP10@narfe.org

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narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $40. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2019, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in NARFE Magazine, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President

WHAT’S BREWING ON CAPITOL HILL?

ARFE is busy representing your interests on Capitol Hill and to the administration. Here is a brief

snapshot.

NARFE is proud to support the Equal Treatment of Public Servants Act, which would bring some relief to those affected by the Windfall Elimination Provision (WEP). You can read more about this on page 6. NARFE urged changes to the Social Security 2100 Act, which proposes numerous changes to Social Security but does not apply comparable changes to federal annuities. Among them is a switch in the calculation of cost-of-living adjustments (COLAs) from the Consumer Price Index for Urban Wage Earners (CPI-W) to the Consumer Price Index for the Elderly (CPI-E). NARFE fully supports this shift; however, any change in the COLA must also apply to federal benefits. The Bipartisan Budget Act of 2019 increased discretionary spending caps imposed through sequestration by $324 billion for fiscal years 2020 and 2021. The legislation only includes $77.3 billion in offsets, and it contains no cuts to federal benefits, showing that NARFE’s “enough

NARFE’s Mission Statement To support legislation and regulations beneficial to federal civilian employees and annuitants and potential annuitants under any federal civilian retirement system and to oppose those detrimental to their interests.

is enough” message is resonating strongly on Capitol Hill. The Middle Class Health Benefits Tax Repeal Act that passed the House would repeal the “Cadillac tax,” a 40 percent tax on highvalue health insurance. The tax could translate to higher premiums and/or benefits cuts for enrollees, including many federal employees and retirees. The Federal-Postal Coalition sent correspondence to the House urging members to vote for the legislation. NARFE supports congressional efforts to stop the Office of Personnel Management (OPM) and General Services Administration (GSA) merger plan. The House blocked any reorganization in two different bills, but the Senate has not taken action in either direction. Next steps are likely to take shape in the fall, and NARFE remains committed to ensuring that the vital services provided by OPM are prioritized. I had the privilege of speaking at a press conference earlier this year in support of the Federal Employee Paid Leave Act, which would guarantee 12 weeks of paid leave for federal employees for the birth, adoption or fostering of a new child, as well as other medical needs covered by the Family Medical Leave Act. This legislation was included in the House version of an annual defense authorization bill. It’s a busy time on Capitol Hill. Please make sure NARFE has your current email address so you can receive our action alerts and stay informed.

To promote the general welfare of federal civilian employees and annuitants and potential annuitants, to advise and assist them with respect to their rights under retirement, health and other employee and retiree benefits laws and regulations, and to represent their interests before appropriate authorities. To cooperate with other organizations and associations in furtherance of these general objectives.

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KENNETH J. THOMAS NARFE NATIONAL PRESIDENT natpres@narfe.org

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Washington Watch

NEW WINDFALL ELIMINATION PROVISION REFORM BILL INTRODUCED

bipartisan group of lawmakers, led by House Committee on Ways and Means Ranking Member Kevin Brady, R-TX, introduced a bill in late July, the

Equal Treatment of Public Servants Act of 2019, H.R. 3934, to modify the Windfall Elimination Provision (WEP). The WEP reduces the Social Security benefits of federal, state and local retirees covered by the Civil Service Retirement System (CSRS) who earned Social Security benefits through other employment, such as private-sector jobs. The bill would reform the WEP by changing the Social Security benefit calculation for WEP-affected beneficiaries. As of December 2018, the WEP affects 1,863,084 beneficiaries, including 1,747,212 retired workers, 13,345 workers with disabilities, and 102,527 spouses and children. At press time, the bill has yet to be introduced in the Senate. Under the bill, WEP-affected individuals who are age 60 and older in 2019 would receive a monthly rebate of $100, adjusted annually by the COLA. Surviving spouses receiving a WEP-reduced Social Security benefit based on their spousesâ&#x20AC;&#x2122;

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employment would receive a $50 monthly rebate. Moving forward, the bill would replace the WEP with a formula that equalizes benefits for certain individuals with noncovered ACTION ALERT!

employment. Individuals under age 21 in 2019 would have their WEP penalty calculated with the new formula, which would increase Social Security benefits for a significant majority of individuals subject to WEP. For those between ages 21 and 59 in 2019, the WEP penalty would be calculated using either the current formula or the new one created in the bill, whichever is more beneficial. The legislation would also require Social Security statements sent from the Social Security Administration (SSA) to report noncovered earnings (e.g., earnings under CSRS), which would give individuals a more accurate assessment of

OCTOBER

The House has approved a 3.1 percent pay raise for federal employees in 2020. Currently, the House and Senate are in negotiations to come to an agreement on appropriations legislation. NARFE members should continue to contact their legislators and urge them to support this pay raise. Use NARFEâ&#x20AC;&#x2122;s Legislative Action Center (at www.narfe.org) to send your members of Congress a personalized message urging them to support the pay raise for federal employees.

their future benefits. Finally, H.R. 3934 would require the commissioner of the SSA to study and test the administrative feasibility of partnering with state and local pension systems to improve the sharing of information on noncovered earnings. This could lead to

allowing SSA to apply WEP to the Social Security benefits of a greater number of state and local government retirees who might otherwise avoid enforcement. While the Equal Treatment of Public Servants Act does not fully repeal the WEP, it does represent a significant

WHAT IS THE DEBT CEILING?

n late July, congressional Democrats and Republicans came to an agreement on a budget deal that suspended the debt ceiling for two years. Because the issue of raising the debt ceiling always makes headlines, let’s dive into what the debt ceiling is. The debt ceiling is the upper limit on the amount of money that the federal government may borrow. The debt ceiling does not authorize new spending commitments; it allows the government to pay for existing legal obligations such as Social Security, Medicare, federal employee salaries and interest on the national debt. The U.S. Treasury Department monitors the debt ceiling and issues U.S. Treasury bills, bonds or notes to pay legal obligations, but when the debt ceiling is reached, the Treasury can no longer issue those products. That is when the threat of default comes into play and places the nation in a precarious financial situation.

Defaulting on our debt would have serious negative effects on the economy; it is equivalent to the country declaring bankruptcy. Defaulting would likely increase the cost of our debt and lead to a downgrade in our nation’s credit rating. That is why Congress has always acted when called to raise the debt ceiling. According to the Treasury Department, “Congress has acted 78 separate times to permanently raise, temporarily extend or revise the definition of the debt limit” since 1960. In the latest debate over the debt ceiling, Congress opted to suspend the debt ceiling until July 2021. The suspension allows the government to borrow enough money to cover its legal obligations for another two years, after which the debt ceiling will be raised to show how much was borrowed during that time. Don’t be surprised when you start to see headlines about the debt ceiling in a couple years.

improvement over CSRS retirees being unfairly penalized for their public service. The bill’s introduction represents a modest step towards fully addressing the provision and providing relief to WEP-affected individuals. — BY SETH ICKES, GRASSROOTS ASSISTANT

MYTH vs. REALITY Myth: The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which the Bureau of Labor Statistics (BLS) uses to calculate cost-of-living adjustments (COLAs), is the best index to use for seniors.

Reality: Households included in the CPI-W earn more than half of their income through clerical or wage occupations, and at least one of the household’s earners must have been employed for at least 37 weeks during the previous 12 months. NARFE contends that this population does not represent seniors and therefore should not be used to determine the spending habits of retirees. The Consumer Price Index for the Elderly (CPI-E) better reflects the retiree population.

— BY ROSS APTER, POLITICAL ASSOCIATE

W W W. N A R F E . O R G

Washington Watch

TELLING YOUR STORY WITH PASSION

olding in-person meetings, making phone calls, and writing letters are some functional grassroots advocacy strategies constituents can engage in to get legislators’ attention. But these strategies are only persuasive when they involve compelling stories about how action or inaction by Congress is impacting people’s lives or communities. Storytelling is the most important tool in an advocate’s toolbox and, when done with passion and credibility, it can influence how a legislator responds to an issue. NARFE’s advocacy staff sort through numerous bills introduced in Congress. We focus on ones that have the most impact on the federal community and put together an action plan to educate NARFE members, legislators and congressional staff. NARFE then turns to its members—that is, you— to engage in calls to action, and most importantly, to tell your personal stories. When you share their stories with legislators, you are putting a human face on the issues, which are best illustrated by the people they affect—active and retired federal employees who encounter a barrage of threats to their financial and health benefits. Your unique experiences, along with the hard facts and figures that NARFE provides, create persuasive narratives that help legislators connect their actions on Capitol Hill to how those decisions impact the people they represent. A typical day on Capitol Hill is filled with chatter from special interest groups who are lobbying for the attention of lawmakers. The only way to rise above the clamor is to present

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compelling constituent stories that win the heart, mind and vote of legislators. According to the Congressional Management Foundation, members of Congress have an average of 13 meetings per day, and a typical House office has 28 meetings per day. Among the blizzard of pitches and constituents’ requests for action, lawmakers often face difficult decisions about what issues to support and what actions to take. Members of Congress are not experts. While they have staffers that study the issues, they also depend on constituents for information. NARFE’s goal is to have a vibrant grassroots advocacy program, and we are looking to build our Congressional District Leader (CDL) and Senatorial Leader (SL) programs. CDLs and SLs are volunteers who actively lead advocacy efforts, serving as a liaison between the legislator, other NARFE members in the district and NARFE advocacy staff. NARFE members are encouraged to volunteer for these important membership roles. If you are ready to lead, contact your federation president and tell him or her you want to be a CDL or SL. For a list of federation presidents, please visit the members only section

of the NARFE website at www. narfe.org. You can also contact NARFE’s advocacy department at advocacy@narfe.org. — BY MARSHA PADILLA-GOAD, GRASSROOTS PROGRAM MANAGER

NARFE GRASSROOTS ADVOCACY Learn more about how you can take action to protect your earned pay and benefits by reviewing NARFE Grassroots materials at www.bitly.com/ NARFE-grassroots.

CONGRESS INCREASES SPENDING CAPS, BEGINNING THE FY20 APPROPRIATIONS PROCESS

his summer, Congress passed, and the President signed, the Bipartisan Budget Act of 2019, H.R. 3877, raising discretionary spending caps imposed through sequestration by $324 billion for fiscal years 2020 (FY20) and 2021 (FY21). The spending bill allows for an increase of $22 billion in discretionary defense spending and $27 billion for discretionary nondefense spending over FY19 levels, totaling $738 billion and $632 billion, respectively. The bill included $77.4 billion in offsets for those increases but contained no cuts to federal benefits, showing that NARFE is getting

through to legislators on Capitol Hill. The measure also suspended the debt ceiling until mid-2021, putting to rest any concerns of default. Congressional Democrats and the Trump administration worked out the budget agreement over months of tense negotiations. The bipartisan legislation decisively passed the House in a 284-149 vote and was approved by the Senate in a 67-28 vote. The bill moved to the President’s desk, where he signed the deal. Although the legislation generally received support from both parties, many conservative Republicans in both chambers of Congress refused to back the

bill because it would increase the national deficit. The deal sets the stage for appropriations discussions to begin in full force early September, when Congress returns from its August recess. The two chambers will have to negotiate spending bills, including provisions included in House-approved legislation. As of press time, the House had already approved numerous bills, including the Financial Services and General Government (FSGG) appropriations bill, as well as and the National Defense Authorization Act (NDAA). (Continued on p. 10)

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Washington Watch

THE CREATION OF THE MERIT-BASED CIVIL SERVICE

ur nation’s civil service has gone through many changes over time. To see just how far the system has come, let’s take a look at its origins. Many of our nation’s early presidents played a part in creating what is known as the spoils system—rewarding loyal supporters with government positions while removing political opponents from federal office. The reach of the spoils system expanded in 1832 under President Andrew Jackson and became entrenched by the 1850s, with each new administration casting out workers and replacing them with loyalists. There were calls to reform the civil service before the Civil War, but it wasn’t until the 1870s that eradicating the spoils system became a crusade. However,

attempts to reform the system were blocked by congressional proponents of the system. In 1881, the assassination of President James Garfield by a rejected office-seeker propelled the movement forward. Congress passed the Pendleton Civil Service Reform Act, and it was signed into law in January 1883. The law created the United States Civil Service Commission to oversee public servants and made it so that some government employees would be hired by passing competitive exams, rather than be hand-picked by politicians. The law also made it illegal to fire or demote certain government employees for political reasons. At first, the Pendleton Act only applied to roughly 10 percent of federal employees,

(Continued from p. 9) The FSGG bill includes a 3.1 percent pay increase for federal employees, and the NDAA includes 12 weeks of paid family for the birth of a child, for a serious health condition or to care for a dependent. Both House bills contain provisions to block the administration’s misguided Office of Personnel Management (OPM) reorganization plan. These provisions, all of which NARFE supports, will need to be approved in legislation from the upper chamber and signed by the President in order to become law. Fortunately, the two chambers have agreed that their appropriations bills will not contain any policy riders

on controversial issues, like the border wall, so they can pass the bills as quickly as possible and avoid a government shutdown. The most recent government shutdown began in late December 2018 and lasted a record 35 days. Nearly 800,000 federal employees were furloughed or forced to work without pay. The missed paychecks were detrimental to the financial health of thousands of federal employees who couldn’t make payments to their mortgage, student loans, health care and other important expenses. NARFE is urging Congress to move quickly on appropriations to avoid another shutdown.

but it allowed the president to expand the number of employees covered. More and more federal positions were eventually placed under civil service protection as administrations changed, replacing the spoils system with career employees. The foundation for a meritbased civil service was furthered by additional legislation, particularly the Hatch Act of 1939 and the Civil Service Reform Act of 1978, which created the Office of Personnel Management (OPM) and the Merit Systems Protection Board (MSPB). These events propelled the system into the modern era and created our current meritbased civil service. — BY ROSS APTER, POLITICAL ASSOCIATE

LEGISLATIVE RESOURCES

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— BY SETH ICKES, GRASSROOTS ASSISTANT

• NARFE NewsLine: A weekly newsletter that goes out to NARFE members on Tuesdays and includes weekly recaps of legislative news, compiled by NARFE’s advocacy and communications teams. • Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.

narfe bill tracker THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO THE CONGRESSIONAL LEGISLATION THAT NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE

BILL NUMBER / NAME / SPONSOR H.Res. 23: Rep. Susan Davis, D-CA Cosponsors: 195 (D) 48 (R)

H.Res. 33/S.Res. 99 Rep. Stephen Lynch, D-MA / Sen. Gary Peters, D-MI Cosponsors: H.Res. 33: 220 (D) 39 (R) S.Res. 99: 43 (D) 8 (R) 2 (I)

H.Res. 54: Rep. Gerald Connolly, D-VA POSTAL REFORM

Cosponsors: 211 (D) 66 (R)

H.Res. 60: Rep. David McKinley, R-WV Cosponsors: 165 (D) 24 (R)

H.R. 2382: USPS Fairness Act / Rep. Peter DeFazio, D-OR

WHAT BILL WOULD DO

LATEST ACTION(S)

Expresses the sense of the Referred to the House House that the United States Committee on OverPostal Service should take all sight and Reform appropriate measures to ensure the continuation of door delivery for all business and residential customers.

Expresses the sense of the House that Congress should take all appropriate measures to ensure that the United States Postal Service remains an independent establishment of the federal government and is not subject to privatization.

Referred to the House Committee on Oversight and Reform (H.Res. 33)

Expresses the sense of the House that the United States Postal Service should take all appropriate measures to ensure the continuation of its six-day mail delivery service.

Referred to the House Committee on Oversight and Reform

Expresses the sense of the House that the United States Postal Service should take all appropriate measures to restore service standards in effect as of July 1, 2012.

Referred to the House Committee on Oversight and Reform

Repeals the USPS’ prefunding requirement

Referred to the House Committee on Oversight and Reform

Referred to the Senate Committee on Homeland Security and Governmental Affairs (S.Res. 99)

Cosponsors: 194 (D) 31 (R)

NARFE’s Position:

Support

Oppose

No position

W W W. N A R F E . O R G

Washington Watch

EDITOR’S NOTE: These bills are all listed online at www.narfe.org/legislation/votervoice.cfm.

ISSUE

BILL NUMBER / NAME / SPONSOR H.R. 141/S. 521 Social Security Fairness Act of 2019 / Rep. Rodney Davis, R-IL / Sen. Sherrod Brown, D-OH

WHAT BILL WOULD DO

LATEST ACTION(S)

Repeals both the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).

Referred to the House Committee on Ways and Means (H.R. 141)

Reforms the Windfall Elimination Provision (WEP), allotting WEP-affected individuals who are eligible for benefits before 2022 $100 a month and $50 for an affected spouse.

Referred to the House Committee on Ways and Means

Provides Federal Employees Retirement System (FERS) retirees with the same annual cost-of-living adjustment (COLA) as Civil Service Retirement System (CSRS) retirees.

Referred to the House Committee on Oversight and Reform

Requires Social Security and federal retirement programs to use the Consumer Price Index for the Elderly (CPI-E) to calculate cost-of-living adjustments (COLAs) to retirement benefits.

Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Reform, and Armed Services

Allows federal employees who started their careers in temporary positions before transitioning into permanent roles to retroactively contribute toward their retirement for the years they held a temporary position.

Referred to the House Committee on Oversight and Reform

Cosponsors: H.R. 141: 148 (D) 48 (R) S. 521: 26 (D) 4 (R) 2 (I)

Referred to the Senate Committee on Finance (S. 521)

GPO/WEP H.R. 3934 The Equal Treatment of Public Servants Act of 2019 / Rep. Kevin Brady, R-TX Cosponsors: H.R. 3934: 2 (D) 26 (R) H.R. 1254: The Equal COLA Act / Rep. Gerry Connolly, D-VA Cosponsors: 8 (D) 2 (R)

H.R. 1553: Fair COLA for Seniors Act of 2019 / Rep. John Garamendi, D-CA FEDERAL ANNUITIES

Cosponsors: 29 (D) 2 (R)

H.R. 2478: The Federal Retirement Fairness Act / Rep. Derek Kilmer, D-WA Cosponsors: 29 (D) 11 (R)

H.R. 51: Washington, D.C. Admission Act / Del. Eleanor Holmes Norton, D-DC DC STATEHOOD

Provides for the admission of the Referred to the House State of Washington, D.C. into Committees on Overthe Union. sight and Reform, and Rules

Cosponsors: 218 (D) 0 (R)

NARFE’s Position: 12

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Support

Oppose

No position

BILL NUMBER / NAME / SPONSOR

ISSUE

WHAT BILL WOULD DO

H.R. 1073/S. 426: Federal Provides a 3.6 percent federal Adjustment of Income employee pay raise in calendar Rates (FAIR) Act / Rep. year 2020. Gerry Connolly, D-VA / Sen. Brian Schatz, D-HI Cosponsors: H.R. 1073: 48 (D) 0 (R) S. 426: 13 (D) 0 (R) FEDERAL COMPENSATION

H.R. 1534/S. 1174: Federal Employee Paid Leave Act of 2019 / Rep. Carolyn Maloney, D-NY / Sen. Brian Schatz, D-HI Cosponsors: H.R. 1534: 41 (D) 2 (R) S. 1174: 4 (D) 0 (R)

Provides federal employees with 12 weeks of paid leave in connection with the birth, adoption, or foster placement of a child and other medical conditions.

LATEST ACTION(S) Referred to the House Committee on Oversight and Reform (H.R. 1073) Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 426) Referred to the House Committees on Oversight and Reform, and House Administration (H.R. 1534) Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 1174)

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Questions & Answers

The following Questions & Answers were compiled by employees of the Federal Retirement Thrift Investment Board (FRTIB), which administers the Thrift Savings Plan. The FRTIB does not provide legal, financial planning or tax advice assistance.

EMPLOYEES NEW TSP WITHDRAWAL PROCESS

Q A

Where can I find updated forms to request withdrawals from my TSP account now that the new withdrawal options are available?

To initiate your withdrawal request, log into My Account on tsp. gov and select “Withdrawals and Changes to Installment Payments” under the Online Transactions menu on the left side of the screen. Then select the online tool that applies to the type of withdrawal you’d like to take. You’ll only be able to select the tools that you’re eligible to use. If you’re still working in federal or uniformed service, you can only use the in-service withdrawal tools. You must be age 59½ or older to use the “59½” In-Service Withdrawal tool. After you separate from service, you can use the postseparation tools to request a new withdrawal,

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make changes to installment payments or purchase an annuity. Using the online tools after logging into My Account makes the withdrawal process more secure than using paper forms. The tools guide you through your withdrawal options and automatically populate and verify your account information; this way, it’s easier for you to complete your request accurately, which allows the TSP to process your request more efficiently. If you do need to supplement your request with additional information, such as signatures or transfer details, the tool will generate the necessary pages for you to

print, complete and submit by mail or fax.

IN-SERVICE WITHDRAWALS AS INSTALLMENT PAYMENTS

I understand that the new TSP withdrawal options allow me to take up to four withdrawals each year since I’m older than age 59½ and still working as a federal employee. Can I set these withdrawals up as quarterly installment payments?

No. While you’re still working in federal or uniformed service, your only TSP withdrawal option is an in-service withdrawal, which is a single payment. You’ll be able to set up installment payments (among other options) after you separate from service.

EMPLOYEE ELIGIBILITY FOR NEW TSP WITHDRAWAL OPTIONS, PART 1

I took an in-service withdrawal from my TSP account when I turned 59½ in 2017. Do the rule changes allow me to take another withdrawal before I retire?

Yes. The TSP’s new, flexible withdrawal options allow you to take up to four age-based in-service “59½” withdrawals each year (after you reach age 59½). Any in-service withdrawals you take have no effect on the number of withdrawals you can make after you separate from service.

spouses of active or separated TSP participants. For any other beneficiary, including the spouse of a deceased beneficiary account holder, the TSP sends a single payment for the full amount that the beneficiary is entitled to receive, so the withdrawal options do not apply.

RETIREES PRESERVING TSP SAVINGS WHILE TAKING RMDS

EMPLOYEE ELIGIBILITY FOR NEW TSP WITHDRAWAL OPTIONS, PART 2

I don’t need money from my TSP account right now, but I have to start taking required minimum distributions (RMDs) because I’ve left federal service and am turning 70½ this year. What’s the best way to receive just my RMD and nothing more?

Yes and no. If a spouse is a beneficiary of a TSP account, the TSP will establish a beneficiary account for that spouse when the TSP participant dies. The spouse will then have the same withdrawal options as a TSP participant who has separated from service, including the new ones. (This is true for all beneficiary accounts, including those established before the new withdrawal options became available.) The TSP establishes beneficiary accounts only for

The simple answer is that you don’t have to do anything at all. The TSP will calculate your RMD according to the IRS Uniform Lifetime Table and send you a check before the deadline. You may want to take action on your own, however. Here are some things to consider: • Since you turn 70½ this year, this is the first year RMDs apply to you. The IRS doesn’t require that you receive your first RMD until April 1 of next year. After the first year, the deadline is December 31. That means you’ll receive

Q A

Can TSP beneficiaries use the new withdrawal options?

two RMDs next year if you do nothing. If you’d prefer to receive one this year and one next year—maybe for tax purposes—you should withdraw the required amount before the end of this year. • If you have both Roth money and traditional money in your account, the automatic RMD check from the TSP will include a pro rata, or proportional, amount of each. With the new withdrawal options, you can choose to include Roth money only or traditional money only instead of the pro rata amount. • Any withdrawals you take from your TSP during the year count toward your RMD amount. If you prefer to receive several payments instead of a single check, you have options. For example, you can request a single withdrawal for part of the amount, and the TSP will calculate the remaining RMD balance and send you a check before the deadline. If you choose to set up monthly or quarterly installment payments based on life expectancy tables, your payments over the course of a year will be the same as your RMD amount. • If you want the TSP to issue your RMD as a direct deposit instead of mailing W W W. N A R F E . O R G

Questions & Answers

you a check, you should submit a withdrawal request. • Depending on your circumstances, you may be able to increase or waive the amount of tax withheld from RMD payments. Read the TSP tax notice, Important Tax Information About Your TSP Withdrawal and Required Minimum Distributions, available on www.tsp.gov. In any case, you should verify that the TSP has your correct mailing address on file by logging into My Account or by calling the ThriftLine toll free at 877-847-4385. (Outside the United States and Canada, call 404-233-4400.) You don’t want your money going to the wrong place!

TSP WITHDRAWALS AND TAX WITHHOLDING

With the new TSP withdrawal options, I’m planning to take installment payments from my traditional balance and supplement that with single withdrawals from my Roth balance. Is there a way to change the tax withholding for the installment payments?

Maybe. Tax treatments on withdrawals from your retirement savings will depend on individual circumstances such as your age, when you made your first Roth contribution and how many years your installment payments should last. You also need to consider what you do with a distribution because the tax withholding will be different depending on 18

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whether you receive money directly or you transfer it into another account. As with any complicated financial decision, consider consulting a qualified financial advisor or tax advisor. The TSP provides detailed information about the taxes it must withhold in its tax notice, Important Tax Information About Payments From Your TSP Account, which you can find on www.tsp.gov. In addition to offering detailed information and examples of tax withholding for withdrawals in different situations, the tax notice includes a table with summary information about tax treatments on the last page. For any taxable portion of your withdrawal, you can quickly find information about the withholding rate and whether you’re able to transfer the withdrawal, or decrease, increase or waive tax withholding.

MULTIPLE PARTIAL TSP WITHDRAWALS VS. INSTALLMENT PAYMENTS

I know that the new TSP withdrawal options allow me to set up installment payments or take a single withdrawal as often as every 30 days. What’s the difference between taking monthly installment payments and taking single withdrawals once a month—is there any advantage of choosing one over the other?

You’re correct that the new withdrawal options allow you to set up installment payments—monthly, quarterly or annual—and take multiple partial withdrawals from your TSP account, as long as those requests are at least 30 days

apart. You can also change your installment schedule or amount at any time during the year. The best choice or combination for you will depend on your circumstances, of course, but there is another major consideration that can impact your choice: How much paperwork do you want to complete? While the single payment option allows you to mimic installment payments, you do have to submit a new withdrawal request each time. You’ll initiate that request easily by signing into My Account and using a secure withdrawal tool, but you may need to supplement what you submit online with other information, such as notarized signatures. This will always be the case for married participants who retired under the Federal Employees Retirement System (FERS) or from the uniformed services, for example, since their spouses must consent in writing to any transaction that could change the amount available for survivor annuities that they’re entitled to under the law. When you set up installment payments, however, you only need to go through the withdrawal process once (unless you need to make a change later). Keep in mind that if you ever need to supplement your installment payments, you could make a single withdrawal at that time without changing your installment payments.

ELIGIBILITY FOR NEW TSP WITHDRAWAL OPTIONS

I took an in-service withdrawal from my TSP while working in 2005 and understood at the time that my next withdrawal would have to apply to

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Questions & Answers

the rest of my account balance. Am I able to use the new withdrawal options even though I retired under the previous withdrawal rules?

Yes. The TSP’s new, flexible withdrawal options apply to all current TSP accounts. Now, you never have to make a withdrawal for your full account balance.

RETIREE ELIGIBILITY FOR NEW TSP WITHDRAWAL OPTIONS, PART 1

I made a full withdrawal election when I reached age 70½ and chose to

receive monthly payments. Under the new rules, am I able to stop those monthly payments and not withdraw my total account balance?

Yes. The TSP’s new, flexible withdrawal options apply to all current TSP accounts. You can stop your monthly payments at any time by logging into My Account on tsp.gov and using the online tool to submit your request. Keep in mind that you do still need to take IRS required minimum distributions (RMDs).

RETIREE ELIGIBILITY FOR NEW TSP WITHDRAWAL OPTIONS, PART 2

I transferred most of my TSP account balance to an IRA by taking a partial withdrawal when I retired in 2014. Can I transfer my money back into the TSP now that the withdrawal rules have changed?

Probably. As long as you have at least $200 in your TSP account, you can transfer in money from certain types of accounts, such as eligible employer plans or IRAs. You could have done this before the TSP changed the withdrawal rules, but these

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Questions & Answers

new options may increase your incentive to do so now.

RETIREE ELIGIBILITY FOR NEW TSP WITHDRAWAL OPTIONS, PART 3

TSP accounts. If you were to start working again in a position eligible to contribute to the TSP, then you could transfer eligible funds in to your new TSP account.

I transferred my entire TSP account balance to an IRA when I retired in 2014 because I had already taken an in-service withdrawal a few years earlier. Can I transfer my money back into the TSP now that the withdrawal rules have changed?

If you have a question about withdrawing money from your TSP account, you can speak to an official TSP Participant Service Representative by calling the ThriftLine at 877-968-3773. (Outside the United States and Canada, call 404-344-4400.)

As original work produced by the U.S. government, the text of this article is not subject to copyright and exists in the public domain.

No. The new withdrawal options only apply to current

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YOUR MONEY, YOUR CHOICE

BREAKING NEWS

NEW TSP WITHDRAWAL OPTIONS OFFER LONG-TERM VALUE

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For much of our careers, retirement is a distant idea marked by decisions we have to make today. Many people find it difficult to connect their choices about contributions and investments to tangible goals that sit 10, 20 or 30 years down the road. As one employee I talked to admits, “I haven’t put as much thought into it as I’m probably supposed to.” Rick joined the federal workforce 11 years ago, right out of college, after he handed his resume to the right person at a career fair and landed a job with the U.S. Patent and Trademark Office. When asked about his ideal retirement, he says, “I would like to have one, so that’s a starting point.” With early planning and a longterm approach, you can set yourself up for the life you want after you’re finished working. For many federal civilian employees and members of the uniformed services, a key feature of retirement planning is the Thrift Savings Plan (TSP), which offers participants easy investment at low cost. In fact, TSP savings represent what will become the largest portion of retirement income for most current employees. And here’s the great news: the TSP recently introduced new, flexible withdrawal options that add tremendous value for all participants, whether active, separated or beneficiary.

YOU ASKED, AND THE TSP LISTENED

The new withdrawal options are a major change to the TSP. Participants have asked for and anticipated this versatility for many years.

Previous rules limited participants to two withdrawals in a lifetime and required that separated participants make a “full withdrawal election” by age 70½. However, fulfilling that requirement didn’t mean you needed to empty your TSP account. Instead, you could set up regular monthly payments— along with receiving a partial payment, purchasing an annuity, or both—which many chose to do. But even monthly payments carried restrictions, and more than a third of participants chose to transfer out all of their funds. A recent TSP report shows that 36 percent of participants under the Federal Employees Retirement System (FERS) left the TSP within a year of separating from federal service, often citing a need for the f lexibility they could get elsewhere despite the higher fees they might face. Mary and Frank, a retired couple from New Jersey with 63 years of federal service between them, planned to do just that. “We were starting to think about taking all our money out of our TSP accounts and rolling it over because we didn’t want to be saddled with the limited options,” Mary said, referring to the two-withdrawal rule as “baggage.” Having retired under the Civil Service Retirement System (CSRS) from the National Park Service, Mary viewed her TSP account as a supplement to her CSRS annuity. But Frank, who spent 25 years under FERS at the Environmental Protection Agency, held his life’s savings in the TSP. When they learned about the new flexible withdrawal options, they decided to stay with the TSP, W W W. N A R F E . O R G

knowing they could access their money for an emergency or for special plans. In order to enact changes to the withdrawal rules, the TSP needed to request legislative action. As a result of the TSP’s efforts and bipartisan support in Congress, the TSP Modernization Act of 2017 became law.

CHANGES THAT ADD LONG-TERM VALUE

The new withdrawal options make a great retirement plan even better, offering six big changes to TSP participants: You can make multiple partial withdrawals. Before, you could only make one age-based in-service withdrawal or one postseparation partial withdrawal in a lifetime. Now, you can make up to four age-based in-service “59½” withdrawals each year. After you separate from service, you can make as many single (partial) withdrawals as you need, even if you receive regular installment payments. You can customize your installment payment schedule with more options. Before, you could elect to receive regular payments only on a monthly schedule. Now, you can choose among monthly, quarterly, and annual installment options. You can start, stop or change your installment payments whenever you need to. Before, if you needed to change your monthly payment amount, you could only do so during open season at the end of each year. The only way to stop monthly payments completely was to withdraw the full balance of your account. Now, you can stop an installment schedule at any time, or start a new installment schedule when you need to. And you can change your installment amount as your needs change. You can choose to withdraw from Roth only, traditional only or a proportional mix of both. Before, all withdrawals from your account included a pro rata, or proportional, amount of your Roth and traditional money. Now, you can optimize the tax treatment of your withdrawals by choosing whether they 26

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include Roth money only, traditional money only or a pro rata amount. You’ll use an online tool to make your withdrawal requests quickly, accurately and securely. Before, you had to submit paper forms by mail or fax to make or change a withdrawal election. Now, to add more security to the withdrawal process, you’ll log into My Account on tsp.gov to initiate your request. The online tool will guide you through your withdrawal options and automatically populate and verify your account information to ensure accuracy. The tool will even generate prefilled forms for you to print if your withdrawal request requires additional information, such as signatures, that you need to mail or fax to the TSP. Depending on their circumstances, some participants will be able to complete their withdrawal requests completely online. You have more reasons to stay with the TSP. Before, you had to make a full withdrawal election when you reached age 70½ and were separated from federal or uniformed service. If you didn’t make a withdrawal choice, your account became abandoned. Now, you can continue to benefit from the TSP’s low fees in retirement as long as you have at least $200 in your TSP account. You’ll still need to make IRS required minimum distributions (RMDs) when you’re separated and age 70½ and older, but you can accomplish that in the manner that works best for you. And you can still choose among a variety of withdrawal types including single (partial) withdrawals, installment payments and life annuity purchases. (See TSP Withdrawals Quick Guide on p. 28.)

THE BENEFITS OF MORE FLEXIBILITY

Many people don’t put much thought into how they’d like to withdraw their retirement savings until they’re close to retirement. But part of planning ahead should include an idea of your withdrawal strategy. For example, choosing the tax treatment of your contributions—traditional (pretax) or Roth (after tax)—affects the amount of your paycheck now and the amount of taxes

DEVELOPING STORY you’ll owe on your distributions later. The ability to choose whether your withdrawal includes traditional money, Roth money or both allows you to optimize your tax obligation even more than before. Shayela, a Department of Energy employee with five years of federal service—and five years of avid TSP savings—recognizes that she’s lucky to understand these advantages early in her career. “It’s very much tailored to what people want. As someone who works in a federal agency, I understand that people usually don’t associate more flexible options with a stereotypical government bureaucracy.” She credits her father, also a federal employee, for encouraging her to contribute from the beginning, starting with at least enough to get the five percent agency match she’s eligible for under FERS. “I’m not going to say no to free money,” Shayela says, while acknowledging that it’s hard not having as much in her paycheck. “The goal is to not touch it, so I try not to think about it.” This is the same approach Leslie has taken during her 34 years at the Occupational Safety and Health Administration. She recently celebrated reaching her minimum retirement age, which means she’s eligible to retire under FERS. Although she hasn’t set a date for retirement, she looks forward to taking advantage of the “more user-friendly” withdrawal options when the time comes. “All of it benefits me. To choose is just fantastic.” Additional options are also good news for retirees who already receive monthly payments. Bill retired in 2005 after 41 years of service, including more than eight years in the Air Force. He explains, “Under the old system, I elected a one-time lump sum for 15 percent [of my TSP account], and the other 85 percent went into monthly payments. Under the new rules, I could make another withdrawal.” But he and his wife, Debb, who retired under CSRS after 30 years of service, don’t plan to make any changes right now. “We’d like to kick that can down the road until we absolutely have to.” Being able to hold on to TSP savings longer and use them only when needed seems to be the greatest benefit from these changes. After 27 years with the Department of Energy, Mike hit his minimum retirement age and decided it was time to leave. Taking monthly payments through his TSP withdrawal helped him bridge

A key feature of retirement planning is the Thrift Savings Plan (TSP), which offers participants easy investment at low cost. The TSP recently introduced new, flexible withdrawal options that add tremendous value for all participants.

the gap until he could apply for his deferred annuity under FERS. Mike considers himself “somewhat risk averse” and sees a potential concern in making it too easy to take money out of a retirement account. He noted that being able to stop installment payments is a good option for preserving TSP savings if another source of income becomes available. On the other hand, he points out, “You might need to take a big withdrawal. It might be lifesaving to be able to do that.”

WHAT HASN’T CHANGED

It’s important to know that these new withdrawal options are available to every TSP participant, even those that have taken withdrawals under the old rules. You should also be aware that the TSP hasn’t taken anything away by adding more flexibility. The following are aspects of the TSP that remain the same.

Transfer in eligible funds

Remember that as long as you have at least $200 in your TSP account, you can transfer in eligible funds and benefit from the TSP’s low fees through retirement. So if you have an account balance in an eligible employer plan or IRA, you can consolidate your retirement savings in the TSP. You might even keep more of your money by saving on account fees.

Spousal consent

The Federal Employees’ Retirement System Act of 1986, which created the TSP, entitles a spouse to a survivor annuity and serves as some insurance against the unknown. If you’re a married FERS or uniformed services participant, your spouse must consent to W W W. N A R F E . O R G

TSP WITHDRAWALS QUICK GUIDE WITHDRAWAL TYPE

any withdrawals or changes to installment payments that affect the amount of the survivor annuity. If you’re a married CSRS participant, the TSP will notify your spouse of any changes you make. The new online withdrawal tools in My Account on the TSP’s website will take you stepby-step through the withdrawal process. If that process requires a signed, notarized spousal consent, the online tool will automatically generate prefilled forms for you to print, complete and submit by mail or fax.

Required minimum distributions

While you no longer have to make a full withdrawal election once you’re separated and reach age 70½, you do still need to take IRS required minimum distributions (RMDs). Any withdrawals you take during the year count toward satisfying your RMD amount, which is based on the IRS Uniform Lifetime Table. Don’t worry if you don’t take any action or don’t withdraw enough to meet your RMD. 28

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DETAILS

In those cases, the TSP will automatically calculate what you still need to withdraw to satisfy your RMD, and they’ll send you a check for that amount.

YOU ARE OFF TO A GREAT START

It takes time to learn and understand all the factors that make up a federal civilian or uniformed service retirement plan, and the TSP is only one part of the overall package. You’re not alone if you experience doubts about managing this benefit. Rick says, “I don’t want to be playing a retirement video game that actually affects my life.” He finds the TSP helpful because “it’s nice to not have to put a lot of work into it,” he says, referring to the Lifecycle (L) Funds. The L Funds are the TSP’s target date funds, which continually adjust an appropriate mix of stocks and securities as investors get closer to when they’ll need their money. Steady saving and an early start have helped many employees achieve their financial

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TSP WITHDRAWALS QUICK GUIDE FLEXIBLE WITHDRAWAL OPTIONS

goals. Bill remembers being delighted by how much his TSP savings grew, so he chose to stay invested after retirement and stuck with it through the downturn in 2008. Speaking about his life now with his wife, he says, “We’re able to do what we want. We travel internationally, and we travel domestically. We helped our grandchildren get through school.” Those who have weathered the ups and downs of the markets have plenty of advice for those just starting out: Find a mentor. Take a class. Take several classes. Talk to people with experience. Look at resources and attend webinars on tsp.gov. As always with complicated money matters, consider speaking with a qualified financial advisor or tax advisor. Leslie, who would like to donate some of her savings to charity, says, “You don’t want

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PREVIOUS RULES

to be my age and say, ‘Well, I wish I had been contributing more to the TSP.’” Mary tells her children, “Whatever job you have, I don’t care how much you make, you pump as much as you can into your retirement.” She and Frank view the new withdrawal options as a kind of security, and they take comfort in “knowing that we have it if we need it, that we can help our children if we need to, that we could travel if we want to.” Mary pauses after reflecting on more ways she might like to use her TSP savings and says, “Who would think that retirement could be this good?” —CLOUD SPURLOCK IS A WRITER/EDITOR FOR THE FEDERAL RETIREMENT THRIFT INVESTMENT BOARD, THE INDEPENDENT FEDERAL AGENCY THAT ADMINISTERS THE TSP. AS ORIGINAL WORK PRODUCED BY THE U.S. GOVERNMENT, THE TEXT OF THIS ARTICLE IS NOT SUBJECT TO COPYRIGHT AND EXISTS IN THE PUBLIC DOMAIN.

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Open Season Report

PEN SEASON REPORT

THE 2019 FEDERAL BENEFITS OPEN SEASON WILL RUN FROM MONDAY, NOVEMBER 11, THROUGH MONDAY, DECEMBER 9.

uring Open Season, federal employees may enroll or change their current enrollments in several federal insurance benefit programs, such as the Federal Employees Health Benefits (FEHB) program, the Federal Employees Dental and Vision Insurance Program (FEDVIP) and the Federal Flexible Spending Account Program (FSAFEDS). Federal retirees and survivors may make changes to their current enrollment in FEHB and FEDVIP. Open Season is the only time of the year when enrollees in FEDVIP can cancel their enrollment. By early October, the Office of Personnel Management (OPM) will release information regarding the 2020 premiums and benefit changes for the numerous insurance plans participating in these federal programs. This occurs well ahead of the start date of Open Season in order to give everyone enough time to study the options and decide whether to make a change. NARFE will publish selected premium rates and information in the November 32

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and December issues of NARFE Magazine. The information will also be posted on NARFE’s website at www.narfe.org.

WHAT WE KNOW NOW

Generally, OPM encourages carriers to consider a broad range of value- and evidence-based plan designs. At press time, OPM was in final rate negotiations with carriers. In its annual call letter for carriers earlier this year, OPM announced its continued focus on quality and affordability for the 2020 plan year, with a particular emphasis on certain areas of concern: ● Reducing Opioid Misuse The opioid epidemic continues to be a major public health issue, and OPM praised FEHB carriers for the work they’ve done so far to mitigate the problem. One area that OPM highlighted this year was opioid use in pregnancy, as the number of women with opioid use disorder giving birth quadrupled between 1999 and 2014. Generally, FEHB carriers have been asked to continue and augment education and safety

programs that help prevent and treat opioid misuse. ● Improving Access to Mental Health Care Citing a report from the National Alliance on Mental Health, OPM noted concerns about accessibility to mental health care when more than half the counties in the United States lack practicing senior-level mental health professionals. Among OPM’s recommendations in this area were use of telehealth services to provide expanded access and covering out-of-network providers with in-network rates. ● Expanding Tobacco Cessation Programs to Include E-Cigarettes E-cigarettes were originally seen as a way to help adults quit smoking, but they are now viewed as a public health problem in their own right, particularly with regard to how they have been marketed to youth. FEHB carriers are therefore “expected to reinvigorate the messaging about tobacco cessation” programs to include e-cigarettes as well as other forms of tobacco use.

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Open Season Report

● Reducing Maternal Health Complications The mortality rate for U.S. women experiencing complications from pregnancy and childbirth is rising. OPM pointed out how many of these issues are linked with underlying diseases such as cardiovascular problems that can lead to hemorrhage or severe pregnancy-induced hypertension. As a result, FEHB carriers were asked to follow specific maternal health protocols when designing their coverage. ● Clarifying Preventive Services Coverage OPM has noticed that coverage of preventive care is inconsistent. Preventive care should be covered with no cost-sharing (that is, subject to copayments, deductibles or plan limits) based on established guidelines. With regard to affordability, OPM has issued guidance for carriers related to the availability of price information for consumers for both prescription drugs and medical services. OPM has also requested that carriers have online tools available by 2021 to allow plan members to accurately gauge their medical costs. OPM noted the high ratio of FEHB premiums devoted to prescription medications and has offered guidelines for specialty drug coverage, point-of-sale rebates and generic drug incentives.

COMMON FEHB OPEN SEASON QUESTIONS

These answers were compiled by NARFE’s Federal Benefits Institute. Will my current health plan continue to participate in the FEHB program? Don’t assume that your current plan will remain in the program or have the same coverage this 34

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year. The FEHB program adds new plans and drops others from year to year, and plans can change from year to year. For instance, you may find that your premium stays the same, but certain medical procedures are not covered the way they have been in the past. The best way to stay on top of upcoming changes is to read the information available from your health plan and from OPM. Make sure they both have your current mailing address so that your information arrives in a timely manner. I heard that the OPM online comparison tool can give me all the necessary information for selecting a health plan that best meets my needs. Is this true? The comparison tool on OPM’s website provides a good summary of available plans, but it should not be the only source of information you use in making your decision. For that matter, hearsay isn’t the best source of information either. Do an independent review of your needs—including those of your family—and evaluate how various plans meet those needs. Be sure to thoroughly review your plan brochure and the brochures

of any other plans you are considering. The Consumers’ Checkbook Guide to Health Plans for Federal Employees (www.checkbook. org/newhig2/hig.cfm) can also be a good resource, especially for retirees who might be looking for the most suitable FEHB plan once Medicare becomes your primary insurance. You can use the following discount code to receive 20 percent off the cost for accessing their 2020 comparison tools: NARFE20. How do I get a plan brochure? I didn’t get the one I expected in the mail. Health insurance carriers are no longer required to mail plan brochures. You can view the brochures online at OPM’s website (www.opm.gov/healthcareinsurance/healthcare/planinformation/plans/) or call your plan using the contact information on your health plan ID card. What should I do if I don’t understand something in my plan brochure? Don’t ignore plan features that are unclear to you. Contact the FEHB carrier directly to clarify plan features and eliminate the possibility of

OPEN SEASON WEBINARS 10/24 FEHB and Medicare: What’s Your Best Choice? (Sponsored by GEHA) 11/7 The Pros and Cons of Consumer Driven Health Plans (Sponsored by GEHA) 11/21 Health Plans – What’s Your Best Option? Register at www.narfe.org/federalbenefitsinstitute

CONTROL WHAT YOU CAN. INSURE WHAT YOU CAN’T. You can control many things in your life — diet, exercise, even on-demand TV — but life has its own plans. A serious accident or illness can happen at anytime and the high cost of a hospital stay, and the expense of home recovery afterward, can take a serious toll on your personal and retirement savings.

NARFE Hospital Income and Short Term Recovery Insurance Plan This plan can help you manage how life’s surprises affect what you’ve worked so hard for. It pays cash benefits to you, or anyone you choose, to use the money as you see fit. Use the cash benefits to stay more in control of your health care choices, maintain your self reliance, and receive the level of care you’ve earned and deserve.

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• Cash benefits paid in addition to any other coverage you may have. • Coverage cannot be canceled because of your health or your age. • Economical group rates specifically negotiated by NARFE for our members.

To learn more or enroll in the NARFE Hospital Income and Short Term Recovery Insurance Plan, call 1-800-233-5764 or visit us at www.narfeinsurance.com *This policy is guaranteed acceptance, but it does contain a Pre-Existing Conditions Limitation. All benefits are subject to the terms and conditions of the policy. Policies underwritten by Hartford Life and Accident Insurance Company detail exclusions, limitations, reduction of benefits and terms under which the policies may be continued in full or discontinued. Plans may vary by state. The Hartford® is The Hartford Financial Services Group, Inc., and its subsidiaries, including issuing company Hartford Life and Accident Insurance Company. Hartford, CT 06155 Hospital Indemnity Form Series includes SRP-1151, or state equivalent.

Program Administered by Mercer Health & Benefits Administration LLC

Open Season Report

future misunderstandings. This is particularly important to do whenever a plan offers new benefits or coverage options. My health plan will continue to participate in the FEHB program next year. What should I do if I want to stay with my present enrollment? If you are satisfied with your present health insurance coverage, don’t do anything—your plan will automatically continue unless you make a change, or your plan option is terminated. But do confirm that all aspects of your plan are remaining the same before making this commitment. My health plan will not be participating next year. What happens if I do not change to another plan before Open Season ends? If your current plan will not be participating in the FEHB program this year, you may elect a new plan during Open Season. If you are an active federal employee, you must elect a new health plan, or else you will not have FEHB coverage in 2020. If you are a retiree or survivor annuitant, OPM will automatically enroll you in Blue Cross Blue Shield Standard. Is a high-deductible health plan (HDHP) right for me? Monthly premiums for HDHPs may be lower than traditional feefor-service or HMO health plans, but they may not be appropriate for those with higher annual health care costs. HDHPs are typically paired with a health savings account (HSA) or a health reimbursement account (HRA). The combination of an HDHP and an HSA or HRA provides insurance coverage and catastrophic coverage, and it offers 36

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a tax-advantaged way to save for future medical expenses—but they are not right for everyone. For instance, Medicare-eligible enrollees cannot open an HSA and catastrophic coverage may not be adequate enough to cover a long illness or emergency surgery. I am moving. Do I need to change my health plan? It depends. If you’re moving to an area where your current health plan provides good coverage, it’s up to you to decide whether or not a different health plan would serve you better. You have the option to change health plans during this Open Season. However, if you are moving somewhere that your current health plan does not offer coverage, then you don’t need to wait until Open Season to make a change because your move would be a qualifying life event (QLE). If you are a federal employee, you can submit SF 2809 (www. opm.gov/forms/pdf_fill/sf2809. pdf) to your agency benefits office to change plans. Otherwise, if you are a federal annuitant or survivor annuitant, you can use the OPM Form 2809 (www.opm.gov/forms/ pdf_fill/opm2809.pdf) to switch plans. Detailed instructions are included on the forms. I am turning 65 soon. Should I enroll in Medicare, or will my federal health plan continue to provide adequate coverage? Timing is everything when it comes to signing up for various parts of Medicare and identifying the most suitable FEHB plan. NARFE’s Federal Benefits Institute will offer its annual webinar on Medicare and FEHB on October 24, 2019, to assist with the complexities of these

programs. You can watch it live at 2 p.m. ET, or you can watch the recorded version once it’s archived. Register for it at www. narfe.org/federalbenefitsinstitute. In the meantime, here are some of the things you need to know. If you are still covered by your or your spouse’s federal employment FEHB, then Medicare coverage would be secondary to your employment FEHB plan. If you are enrolled in a high-deductible FEHB plan, you may want to consider Medicare Part A since it is typically premium-free. However, as long as you are relatively healthy and remain covered under employment FEHB, you and/or your spouse would have an eightmonth special enrollment period to sign up and pay for Medicare Part B once the employment FEHB coverage ends or is transferred to OPM as retirement FEHB coverage. If you are no longer covered by employment FEHB, then Medicare will become primary to your retirement FEHB plan for most hospital and doctor services. This is one reason why many annuitants consider Medicare Parts A and B when they reach the age of 65, or within 8 months from their separation date from federal service (if older than age 65 upon retirement). Annuitants often compare their current FEHB plan with other FEHB plans to ensure that they have the most suitable plan once Medicare becomes your primary insurance. Read Section 9 of your FEHB plan’s brochure for more details regarding how your plan coordinates with Medicare, whether you are employed or retired. Call your plan’s customer service representative to address any questions you might have about this information.

fepbluevision.com

TAKING CARE OF YOUR EYES IS ESSENTIAL TO GOOD HEALTH

Blue Cross and Blue Shield Federal Employee Program (FEP) has been the provider of choice for federal employees and their families. Our plan, FEP BlueVision®, gives you the coverage you need to keep your eyes healthy for years to come. Regular eye exams can serve as a preventive health measure for people of all ages. Your eye exam can detect eye diseases as well as systemic diseases such as diabetes, thyroid disease, high blood pressure, and more. Here’s why more federal employees choose FEP BlueVision®: Accepted by 95,000+ points of access, including Visionworks, LensCrafters, Costco, Walmart, Sam’s Club, and independent providers $0 copay for comprehensive eye exam, Collection frames, and lenses

A generous frame allowance that can be increased to $200 at Visionworks locations If eligible for LASIK, you can see significant savings of 40% - 50% off the average price of traditional LASIK procedures Use your benefits for eyewear online at visionworks.com.

OPEN SEASON IS COMING Enroll during the Federal Benefits Open Season: November 11 through midnight Eastern time December 9, 2019. To enroll, visit BENEFEDS.com or give them a call 1-877-888-FEDS (3337), TTY: 1-877-889-5680. BLUVISFLR2019-08-EDIT

Questions? Visit fepbluevision.com or call 1-888-550-BLUE (2583), TTY: 1-800-523-2847.

Managing Money

WHAT HAPPENS TO YOUR TSP AFTER YOU DIE?

here’s quite a bit of confusion surrounding a beneficiary’s options when inheriting a Thrift Savings Plan (TSP). Many TSP participants mistakenly

believe their kids will have to take a lump sum, fully taxable (assuming the money is in the traditional TSP) distribution when they die. However, this is only the case following the death of a TSP beneficiary participant. Notice the subtle difference? A TSP participant is different from a TSP beneficiary participant. The former is the original TSP owner—the federal employee who contributed to the TSP account—while a TSP beneficiary participant is the surviving spouse who inherited a TSP from the TSP participant. Only the surviving spouse of a deceased TSP participant may be a beneficiary participant and maintain a beneficiary participant TSP account. In fact, when a spouse is the TSP participant’s beneficiary, the TSP will establish a beneficiary participant account in the name of the surviving spouse, transfer the appropriate share of the deceased participant’s TSP to the beneficiary participant account, and invest the entire account in the G fund. At that point, the beneficiary participant will have the ability to manage the account just as a TSP participant does, including the capacity to allocate the money among one or more

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of the investment funds. The beneficiary participant will also have the same withdrawal options as a TSP participant (see Cloud Spurlock’s article on page 24 for a rundown on the new withdrawal options). There are some key differences to be aware of. For starters, a participant’s first required minimum distribution (RMD) begins with the year they turn 70½ (or the year they retire, if later); however, a beneficiary participant’s first RMD year depends on the age of the participant at the time of death, specifically, whether the participant died before or after the Required Beginning Date (RBD)—April 1 of the year following the year the participant turns 70½. If the TSP participant died before the RBD, RMDs start either December 31 of the year the TSP participant would have turned 70½, or December 31 of the year following the year of the TSP participant’s death, whichever is later. If the TSP

BY MARK A. KEEN,

CFP®

participant died after the RBD, RMDs must begin by December 31 of the year following the year of the TSP participant’s death. Furthermore, while a TSP participant’s RMD is calculated using the IRS’ Uniform Lifetime Table, a beneficiary participant’s RMD is calculated using the Single Life Expectancy Table. This results in an RMD that is more than 60 percent what it would be if using the Uniform Lifetime Table. Finally, as I pointed out earlier, one of the most important differences between a participant and a beneficiary participant is that a beneficiary participant’s beneficiary must take a lump sum distribution. This distribution cannot be transferred to an inherited IRA, and, therefore, is fully taxable to the extent it consists of traditional TSP money. When a nonspouse, such as a child, sibling, or other recipient inherits a TSP participant’s account, he or she must take a lump sum distribution as well; however, the nonspouse beneficiary has the option of transferring the lump sum payment to an inherited IRA or inherited Roth IRA, depending on the type of money in the TSP. This allows the beneficiary to continue the tax advantages of the traditional and Roth TSP money.

BENEFITS RESOURCES NARFE offers members a wide range of information on federal benefits. Visit www. narfe.org/federalbenefits and www.narfe.org/ FederalBenefitsInstitute.

Once the nonspouse beneficiary has moved the TSP money into an inherited traditional or inherited Roth IRA, he or she must begin RMDs by December 31 of the year following the year of the TSP participant’s death. A beneficiary may always take out more than the minimum without an early withdrawal penalty. Of course, they’ll owe taxes on any inherited traditional IRA money distributed.

If a beneficiary participant wants to avoid the potential negative tax consequences of a lump sum distribution upon their death, they may want to consider transferring the beneficiary participant account to an IRA of his or her own. By doing so, not only will the individual follow the RMD rules of an IRA owner (including the use of the Uniform Lifetime Table), but his or her beneficiaries will also have the option to transfer the IRA to an inherited IRA of their own. Be sure to check out the TSP publications Your TSP Account: A Guide for Beneficiary Participants and Death Benefits for additional information. They can be found on the website www.tsp.gov. MARK A. KEEN, CFP®, IS PARTNER, KEEN & POCOCK, AND AN INVESTMENT ADVISER REPRESENTATIVE AND REGISTERED PRINCIPAL OF THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA). SECURITIES AND ADVISORY SERVICES ARE OFFERED THROUGH SFA.

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PLEASE REFERENCE THE VAULT CODE

N A R 1 0 1 9

OFFER VALID UNTIL - November, 20th 2019

W W W. N A R F E . O R G

2019

G FUND

F FUND

C FUND

S FUND

I FUND

AUGUST

0.18%

2.60%

-1.59%

-4.19%

-1.77%

JULY

0.18%

0.21%

1.44%

1.64%

-2.09%

JUNE

0.19%

1.26%

7.04%

6.80%

5.94%

YTD

1.65%

9.11%

18.32%

16.34%

10.04%

1 YEAR

2.67%

10.23%

2.91%

-6.45%

-2.83%

3 YEAR*

2.51%

3.26%

12.69%

9.99%

6.31%

5 YEAR*

2.30%

3.61%

10.14%

7.34%

2.25%

10 YEAR*

2.27%

4.16%

13.48%

13.16%

5.33%

*ANNUALIZED

L INCOME

L 2020

L 2030

L 2040

L 2050

-0.12%

-0.24%

-0.96%

-1.22%

-1.46%

JULY

0.19%

0.21%

0.22%

JUNE

1.57%

2.04%

4.11%

4.87%

5.52%

YTD

4.78%

6.04%

10.21%

11.83%

13.17%

1 YEAR

2.71%

2.29%

1.48%

1.04%

0.57%

3 YEAR*

4.20%

5.64%

7.52%

8.36%

9.11%

2019

AUGUST

5 YEAR*

3.55%

4.46%

5.68%

6.19%

6.59%

10 YEAR*

4.32%

6.97%

8.48%

9.38%

N/A

*ANNUALIZED

RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP (For additional monthly returns, go to www.tsp.gov.) G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)

OPM RETIREMENT CLAIMS PROCESSING STATUS

Claims Received

Inventory Monthly FYTD (Steady State Average Processing Average Processing is 13,000) Time in Days Time in Days

2018

JULY 8,281 18,334 57 59 AUGUST 8,826 17,513 56 58 SEPTEMBER 7,142 17,628 64 59 OCTOBER 9,012 19,729 63 63 NOVEMBER 7,510 19,162 61 62 DECEMBER 5,782 18,019 60 61 JANUARY 13,264 23,121 58 60 FEBRUARY 10,792 23,370 58 57 MARCH 10,048 20,201 50 55 APRIL 6,993 17,802 56 55 MAY 7,877 17,228 62 56 JUNE 8,201 18,501 60 56 JULY 8,000 18,413 55 56 FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. l Source: OPM

2019

For the Record

UNCERTAINTY AND TRADE TENSIONS RATTLE MARKETS

THRIFT SAVINGS PLAN FUND RETURNS

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Several indicators pointed to a looming economic slowdown, most notably the fact that longer-term interest rates fell below shorter-term ones (the so-called yield curve inversion). Although market watchers debated the validity of that signal, many investors were unnerved by ongoing trade tensions and uncertainty surrounding the Federal Reserve’s interest rate policy. The C and S Funds posted losses. A stronger U.S. dollar contributed to the I Fund’s negative return. The drop in longer-term interest rates led to a gain for the F Fund. All of the L Funds posted losses.—BY MICHAEL JERUE, FINANCIAL ANALYST, THRIFT SAVINGS PLAN

COUNTDOWN TO COLA

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 0.20 percent in July 2019. To calculate the 2020 cost-of-living adjustment (COLA), the 2019 third-quarter indices will be averaged and compared with the 2018 thirdquarter average of 246.352. The percentage increase determines the COLA. July’s index, 250.236, is up 1.58 percent from the base. Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W. July’s index is 2.23 percent higher than the December 2018 base index of 244.786. The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes.

MONTH

CPI-W

Monthly % Change

% Change from 246.352 239.668

OCTOBER 2018 2017

240.573 247.038

-0.15 0.19

0.28 0.38

NOVEMBER

245.933 240.666

-0.45 0.04

-0.17 0.42

DECEMBER

244.786 240.526

-0.47 -0.06

-0.64 0.36

JANUARY 2019 2018

245.133 241.919

0.14 0.58

-0.49 0.94

FEBRUARY

246.218 242.988

0.44

-0.05 1.39

MARCH

247.768 243.463

0.63 0.20

0.57 1.58

APRIL

249.332 244.607

0.63 0.47

1.21 2.06

MAY

249.871 245.770

0.22 0.48

1.43 2.55

JUNE

249.747 246.196

-0.05 0.17

1.38 2.72

JULY

250.236 246.155

-0.02 0.20

1.58 2.71

AUGUST

246.336

0.07

2.78

SEPTEMBER

246.565

0.09

2.88

Donate to NARFE Programs Support Alzheimer’s Research NARFE members contributed for Alzheimer’s research: $14 Million Fund

$13,195,818.25*

*Total as of July 31, 2019 100 percent of all contributed funds go to Alzheimer’s research. If you have any questions, write to: NATIONAL COMMITTEE CHAIR Olivia Williams 22 Garden Springs Road Columbia, SC 29209

Enclosed is my NARFE-Alzheimer’s contribution: $______________ Every cent that is contributed is used for research.

q Mr. q Mrs. q Miss q Ms. Name:____________________________________________________ Address:__________________________________________________ City:______________________________________________________ State:_____________________________________________________ ZIP:______________________________________________________

EMAIL: oeashf3@gmail.com

Chapter Number:___________________________________________

WRITE YOUR CHAPTER NUMBER ON CHECK; MAKE IT PAYABLE TO:

Credit Card Information:

q MasterCard

q VISA

AND MAIL TO:

q Discover

q AMEX

Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633

Card Number:______________________________________________

NARFE-Alzheimer’s Research

YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.

Expiration Date:_____(mm)/____ (yy) 3-Digit Security Code:______ Signature:_______________________________ Date:___ /___ /____ Name: (please print)________________________________________

Give to the NARFE-FEEA Fund MAKE CHECK PAYABLE TO: NARFE-FEEA Fund PLEASE MAIL COUPON AND CHECK TO:

FEEA 1641 Prince St. Alexandria, VA 22314

q YES!

I would like to help with my contribution.

The NARFE-FEEA Fund supports NARFE members during disasters; provides scholarships to their children, grandchildren and greatgrandchildren; and funds other programs to support NARFE members at the direction of NARFE and FEEA. Enclosed is my NARFE-FEEA Fund Contribution: $______________

YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.

Name:____________________________________________________ Address:__________________________________________________ City:______________________________________________________ State:_____________________________________________________ ZIP:______________________________________________________ Email:____________________________________________________ To make credit card or e-check contributions, visit www.feea.org/ givenarfe.

NARFE News

2020 Balloting

Important Information and Key Dates

ow that the 2019 Bylaws Referendum is wrapping up (results of which will be available on www. narfe.org the second week of October), it’s time to look ahead to the 2020 NARFE election. Here are the key dates, national officer, and regional vice president candidate procedures, and information and instructions for the submission of bylaws and standing rules amendments and resolutions.

KEY DATES December 13, 2019

National Officer and Regional Vice President Candidate Statements Due by 5 p.m.

January 1, 2020

Proposed Bylaws and Standing Rule Amendments and Resolutions Due

March 1, 2020

Bylaws and Resolutions Committee Final Report Due

March 2020 Issue

Candidate Statements Published in NARFE Magazine

July 2020 Issue

Bylaws and Resolutions Information Published in NARFE Magazine

July 15, 2020

Internet Voting Site Live

August 2020 Issue

Ballot Published in NARFE Magazine

August 31, 2020

Voting Cutoff

National and Regional Officer Candidates All candidates who wish to run for the positions of national president, national secretary/ treasurer and regional vice president must submit their candidate statements by 5 p.m. EST December 13, 2019. Candidate statements will be published in the March 2020 issue of NARFE Magazine so they are available prior to the majority of 2020 federation conferences. Statements are strictly limited to 400 words. No copy corrections will be made, including spelling, typographical or grammatical errors, so statements should be carefully proofread before submission. Candidates should also submit a head-and-shoulders photograph for publication with their statement. Statements should be sent as Microsoft Word attachments. Photos should be high-resolution 42

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digital photos in JPG format. Submit both photo and statement to communications@narfe.org. Only emailed statements and photos will be accepted. Candidates can also send their statements to the membership via NARFE’s email messaging system. Two messages may be sent between May 1 and August 31. Please indicate in the email transmitting the candidate statement whether you plan to opt in to this service, and we will contact you about scheduling. Timing of the distribution of candidate emails depends on the all-member email schedule. Due to member feedback, every effort is made not to send more than one email to the membership on the same day. When more than one candidate indicates he or she would like their email sent on the same day, the requests will be fulfilled in the order in which they are received.

Bylaws and Standing Rules Amendments and Resolutions Article IX, AMENDMENTS, Section 1: Proposed Amendments of the NARFE Bylaws as amended June 30, 2018, sets forth who may propose bylaws and standing rule amendments and resolutions. These must be submitted to National Headquarters either by email at resbylaws@narfe.org or U.S. mail addressed to National Secretary/Treasurer, NARFE, 606 N. Washington St., Alexandria VA 22314. Hardcopy submissions must be postmarked no later than January 1, 2020, and email submissions must be received by January 1, 2020. Only those submissions provided on the appropriate forms will be accepted. Forms and a copy of the current bylaws may be found online at www.narfe.org/2020Balloting or by contacting the National Secretary/ Treasurer.

NARFE MEMBER BENEFITS • Access the NARFE Federal Benefits Institute for powerful resources to help you fully understand and manage your benefits.

Active and Retired Federal Employees ... Join NARFE Today! The only organization dedicated solely to protecting and preserving the benefits of all federal workers and retirees, NARFE informs you of any developments and proposals that affect your compensation, retirement and health benefits, AND provides clear answers to your questions.

Who Should Join NARFE?

If your future security is tied to federal retirement benefits—federal retirees, current employees, spouses and individual survivors—you should join NARFE.

• Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits. • Get monthly issues of NARFE Magazine with news and insights for the federal community. • Visit the Member Perks page for a full listing of the many time-, money- and hassle-saving benefits available only to NARFE members. • The opportunity to get involved at the local level by joining a chapter in your area. 1Q6

NARFE MEMBERSHIP APPLICATION YES. I want to join NARFE for the low annual dues of $40.

q Mr. q Mrs. q Miss q Ms.

PAYMENT OPTIONS q Check, Money Order or Bill Pay (Payable to NARFE) q Bill me (NARFE membership will start when payment is received.) q Charge my: q MasterCard

______________________________________________

Full Name

______________________________________________

Street Address Apt./Unit

______________________________________________

City

State

ZIP

______________________________________________

Phone

q Discover

q AMEX

___________________________________________ Card No. Expiration Date _____ /________ mm

______________________________________________

q VISA

yyyy

___________________________________________ Name on Card ___________________________________________ Signature ___________________________________________ Date

TOTAL DUES

______________________________________________

$40 Annual Dues X ___________ = ___________ Per Person # Enrolling Total Dues

I am a (check all that apply)

Dues payments are not deductible as charitable contributions for federal income tax purposes.

q Active Federal Employee q Annuitant

q Active Federal Employee Spouse

q Annuitant Spouse

q Survivor Annuitant

q Please enroll my spouse _________________________________________

Spouse’s Full Name

LOOKING TO MEET OTHERS in the federal community and participate in NARFE at a local level? Call 800-456-8410 to learn about a NARFE chapter in your area.

_________________________________________

Would you like to receive a FREE one-year chapter membership? Choose one: q Chapter closest to home OR q Chapter #____________

THREE EASY WAYS TO JOIN

MAY WE THANK SOMEONE? Did someone introduce you to NARFE? Please provide their Name and Member ID.

Spouse’s Email

1. Complete this application and mail with your payment to NARFE Member Services / 606 N Washington St / Alexandria, VA 22314-1914.

2. Join online at www.NARFE.org. 3. Call 800-456-8410, Monday through Friday, 8 a.m. to 5 p.m. ET.

___________________________________________ Recruiter’s Name ___________________________________________ Recruiter’s Membership ID NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties. (08/19)

NARFE News

THE COMBINED FEDERAL CAMPAIGN: A TRADITION OF CIVIL SERVICE GENEROSITY

ARFE members are probably familiar with the Combined Federal Campaign (CFC), an inclusive workplace-giving campaign that enables federal workers to support their favorite local, national and international charities. They may not know, however, that retirees can use the CFC, paying by credit card and/ or via their monthly annuity, to continue contributing to important causes. Last year, retirees donated $1.5 million to charities through CFC. The CFC is the largest workplace-giving program in the world and successfully raises millions of dollars from generous

civilian federal employees, postal employees and military personnel annually for eligible local, national and international charitable organizations. These nonprofits specialize in areas ranging from disaster relief and public safety to education, health care and more. This year’s CFC campaign allows federal employees and retirees to support any of the more than 20,000 charities vetted and approved to be in the campaign. In addition to providing health and human service support around the world, the CFC also serves as an opportunity for federal employees to enhance their professional skills by

learning new competencies as they take on volunteer roles. Since 2017, donors are also able to pledge volunteer time to their favorite charities. In 2018, federal employees contributed more than $93 million in both funds and volunteer time. The pledges help those in need and demonstrates Feds’ dedication to public service and their communities. The campaign started in September and continues through Jan. 12, 2020. Newly hired employees can begin a pledge at any time. To set up a recurring donation or any additional information, visit CFC’s Online Donation System at www.opm.gov/ showsomelovecfc.

2019 NARFE Fall Membership Drive

EARN CASH AND PRIZES Everybody wins!

SEPTEMBER 1-DECEMBER 31 EARN $10 FOR EVERY NEW MEMBER YOU RECRUIT Get complete details about the Fall Membership Drive at www.narfe.org/recruit. Questions? Contact membership@narfe.org. 44

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Discover life-changing freedom and fun

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10”

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More and more Americans are reaching the age where mobility is an everyday concern. Whether from an injury or from the aches and pains that come from getting older– getting around isn’t as easy as it used to be. You may have tried a power chair or a scooter. The Zinger is NOT a power chair or a scooter! The Zinger is quick and nimble, yet it is not prone to tipping like many scooters. Best of all, it weighs only 47.2 pounds and folds and unfolds with ease. You can take it almost anywhere, providing you with independence and freedom. I can now go places and do things that I wasn’t able to go or do before. It has given me a new lease on life and I am so happy I found it! –Dana S., Texas

Years of work by innovative engineers have resulted in a mobility device that’s truly unique. They created a battery that provides powerful energy at a fraction of the weight of most batteries. The Zinger features two steering levers, one on either side of the seat. The user pushes both levers down to go forward, pulls them both up to brake, and pushes one while pulling the other to turn to either side. This enables

great mobility, the ability to turn on a dime and to pull right up to tables or desks. The controls are right on the steering lever so it’s simple to operate and its exclusive footrest swings out of the way when you stand up or sit down. With its rugged yet lightweight aluminum frame, the Zinger is sturdy and durable yet convenient and comfortable! What’s more, it easily folds up for storage in a car seat or trunk– you can even gate-check it at the airport like a stroller. Think about it, you can take your Zinger almost anywhere, so you don’t have to let mobility issues rule your life. It folds in seconds without tools and is safe and reliable. It holds up to 275 pounds, and it goes up to 6 mph and operates for up to 8 hours on a single charge. Why spend another day letting mobility issues hamper your independence and quality of life?

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Zinger is not intended for medical purposes to provide mobility to persons restricted to a sitting position. It is not a medical device nor a wheelchair. It is not covered by Medicare nor Medicaid. © 2019 firstSTREET for Boomers and Beyond, Inc.

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Just think of the places you can go: • Shopping • Air Travel • Bus Tours

Member Perks Perks Member

SAVE MONEY WITH NARFE PERKS NARFE appreciates your service, and so do businesses across the country. Whether you are planning your next vacation or planning for retirement, members can save money on everyday purchases, thanks to our Affinity Partners. It’s just one more way we’re able to say “thank you” for being a NARFE member.

PUT YOUR NARFE MEMBERSHIP TO WORK Money-saving discounts that benefit you. For a complete list of Member Perks, visit www.NARFE.org/memberperks. 46

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INSURANCE: NARFE Insurance Services 1-800-233-5764 www.narfeinsurance.com

Plans administered by Mercer Health offering life, short term recovery, pet, travel, vision and hospital insurance policies.

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1-855-550-9216

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TRAVEL: Choice Hotels International 1-800-258-2847 www.choicehotels.com

Receive 20% off of your next stay when you use the special rate id 00801967.

Alamo 1-800-462-5266

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Drive Happy with Alamo, where NARFE members receive year-round discounts using contract id 262544.

Avis 1-800-633-3469 www.avis.com

Avis has 5,500 locations worldwide. Get discounted rate using the AWD number A701900.

MemberDeals 1-877-579-1201

www.memberdeals.com/narfe

Exclusive discounts on nationwide attractions and entertainment.

WELLNESS: Brookdale Senior Living 813-440-8415 www.brookdale.com

Discounts on memory care, independent and assisted living communities, and more throughout the U.S. Offer good on new move-ins only.

Lifeline

1-800-324-9906 www.lifelinescreening.com/narfe Call and mention code BKHN075 or go online to schedule your health screening appointment.

PERSONAL SERVICES: Allied Van Lines â&#x20AC;&#x201C; Coleman Worldwide 800-239-4099, ext. 99445 nicole.wood@colemanallied.com Discounted moving services across the United States.

Office Depot/Office Max

1-855-337-6811, ext. 2897 www.officediscounts.org/narfe

Save up to 80% on more than 93,000 products. Shop online or in any Office Depot or Office Max Store.

Verizon Fios

Verizon Fios offers NARFE members that are new customers to Verizon Fios a discount on the double and triple play packages IF the new account is opened online using the link found at www.narfe.org/memberperks.

W W W. N A R F E . O R G

The Way We Worked

TRAINING FUTURE FBI AGENTS In this 1976 photograph, a Federal Bureau of Investigation (FBI) firearms instructor at the FBI Academy in Quantico, VA, is giving shooting instructions to a special agent trainee. The FBI Academy is the law enforcement agency’s training and research center. It first opened in 1972 in Stafford County, about 35 miles south of Washington, DC. In recent years, the FBI has updated its dormitories, dining facilities and firing ranges, also adding new classrooms, a firearms support facility, a field house for physical training and the Intelligence and Investigative Training Center. Most recently, they’ve incorporated virtual reality as a tool to help train law enforcement personnel to operate in the 21st century. PHOTO from the Records of the Federal Bureau of Investigation, National Archives, courtesy of the National Archives History Office; in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. To join, visit www.shfg.org. 48

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DID YOU KNOW? Hogan’s Alley, the FBI Academy’s mock training town, is known as the “baddest” town in America due to its constant criminal activity. It was officially launched in 1987 to teach tactical techniques and immersed new agents in lifelike, high-stress situations. In earlier days, the FBI used mannequins and actors for practical exercises. During the 1940s, the agency started introducing “alleys“ into their training, and in 1945, mechanically controlled cutouts appeared in the first “surprise scenario” training range.

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