January 2019 NARFE Magazine

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NARFE Members Share Their Goals

Volume 95 • Number 1

IS IT TIME TO RETIRE? NARFE’S ADVOCACY PROGRAM FOR THE 116TH CONGRESS


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JAN

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SPECIAL SECTIONS

33 Advocacy Program 116th Congress

WASHINGTON WATCH

6

New Congress, Same Routine

7 8

20

GAO Report Addresses Postal Service Retiree Health Benefit Fund

9

How the Reduced FERS COLA Came to Be

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New Congress, New Threats? Register for LEGcon19

COVER STORY NEW YEAR, NEW YOU David Tobenkin dives into a NARFE reader survey on goals for big non-work accomplishments in the coming year and beyond.

NARFE, Your Advocate in Civil Service Modernization Dialogues

COLUMNS

4

From the President

38 Managing Money DEPARTMENTS

14 Questions & Answers

26

TIME TO RETIRE? Everett A. Chasen weighs the options and gives advice on when a federal employee should plan to retire.

40 For the Record 42 NARFE News 46 Member Perks 48 The Way We Worked

On the Web VISIT US ONLINE AT:

www.narfe.org LIKE US ON FACEBOOK:

NARFE National Headquarters FOLLOW US ON TWITTER:

@narfehq

ON THE COVER

Illustration by GRAPHEK W W W. N A R F E . O R G

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JANUARY 2019 | Volume 95 | Number 1

EDITOR Helen Mosher ASSISTANT EDITOR Christopher Johnson COMMUNICATIONS ASSISTANT Precious Dorch-Robinson GRAPHIC DESIGN GRAPHEK, Beth Bedard EDITORIAL BOARD Kenneth J. Thomas, Kathryn Hensley, Barbara Sido EDITORIAL OFFICE: NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Email: communications@narfe.org ADVERTISING SALES: Warren Berger Media People Inc. 122 East 42nd St., Suite 1622 New York, NY 10168 Phone: 212-779-7172, ext. 223 Email: wberger@mediapeople.com 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 866-5047300 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 Active and Retired Federal Employees Association NATIONAL OFFICERS KENNETH J. THOMAS, President; natpres@narfe.org KATHRYN 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 Kathleen 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: wshack1951@aol.com

HERE’S HOW TO CONTACT US…

TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER:

CALL (TOLL-FREE) 800-456-8410 OR GO TO www.narfe.org TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:

CALL (TOLL-FREE) 800-456-8410 EMAIL memberrecords@narfe.org OR GO TO www.narfe.org, log in and click on “Update My Record”

TO REACH A FEDERAL BENEFITS SPECIALIST:

EMAIL fedbenefits@narfe.org NARFE HEADQUARTERS

606 N. Washington St. Alexandria, VA 22314 703-838-7760 Hours of operation: Monday-Friday, 8 a.m.-5 p.m. ET

www.narfe.org

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

PREVIEW OF COMING ATTRACTIONS

I

n just a few weeks, the winners of both the House of Representatives and the Senate races will be sworn into office as

part of the 116th Congress.

Will both chambers remain bitterly divided? Orchestrated campaign messages and months of candidate national headlines have come to an end. At the forefront were misleading statements and tribal rhetoric. Absent were unifying messages. We, the voters, had the final say on November 6. The results tell us about trends in the country and the dynamics driving the country itself. Issues like health care, Medicaid expansion, the economy, public education, voting rights, criminal justice reform, and state, local and federal government issues all boiled down to a choice between maintaining the past or moving towards the future. The question: Is NARFE prepared for the changes about to take place in Washington? What we know: Hot topic items of the 116th Congress include health care issues, entitlement reform, sequestration, and

infrastructure improvements. The national deficit, raising discretionary spending caps, retirement reform and tax reform are additional key issue areas driving this Congress. NARFE’s list of priorities for the 116th Congress includes: Protecting the earned retirement and health benefits of federal employees and retirees; advocating for pay increases in 2020 and 2021; modifying postal reform proposals to preserve health care choices for postal retirees; enacting a full COLA for FERS retirees; supporting current efforts to reform the WEP; ensuring adequate oversight of proposals to reorganize the federal government; supporting reforms to the Federal Long Term Care Insurance Program; providing substantive feedback on efforts to modernize the civil service; and advocating for the Combat Zone Tax Parity Act. For details on these priorities, see page 33. With new congressional leadership, new members of Congress and new committee assignments, there come new agendas and new opportunities. Now is the time to look ahead and plan. Stay alert and stay involved.

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. 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 CONGRESS, SAME ROUTINE

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lections are fraught with uncertainty, but once the smoke clears and the electoral victors come to Washington to begin the new Congress, there are predictable processes

to get legislative business underway. The Constitution requires that the new Congress convenes on January 3 of each oddnumbered year, unless the previous Congress determines a different day by law.

Each chamber follows different routines and procedures, but some aspects are similar even if they don’t occur in the same order. Each chamber swears in its newly elected members on the first day of the new Congress; for the House, this is all members, and in the Senate, this is only onethird of members. Also on the first day of the new Congress, each chamber selects who will hold key leadership positions. The Senate selects a president pro tempore to preside over the chamber in the absence of the vice president, and the House elects its speaker, a position with considerable influence over the House’s operations and agenda. Both positions are always elected 6

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from the majority party, and in the case of the pro tempore s/he usually has the longest continuous service of her/his party. Meanwhile, party leadership positions are decided by party conferences, and no floor votes are necessary to ratify these changes. With two-year terms of office, the House is not a continuing body; instead, each House begins and ends with each Congress. As a result, each new House must ACTION ALERT!

adopt the chamber’s rules of procedure every two years. It is the majority party’s prerogative to dictate the rules package adopted in the form of a simple resolution. For the 116th Congress, NARFE will remain particularly vigilant against an extension of the Holman Rule, which allows for floor amendments to appropriations legislation that eliminate a federal position, reduce the number of employees at an agency or cut the salary of an individual federal employee or group of employees. Unlike the House, senators are elected to staggered six-year terms, and only one-third of the Senate’s members are elected each new Congress, making the chamber a continuous body. Since a quorum is always sworn, rules do not

JANUARY

Stand united with NARFE members from around the country on Capitol Hill to protect your earned pay and benefits at LEGcon19, March 10-13. Visit www.narfe.org/LEGcon19 to register and learn more.


need to be reestablished with the commencement of a new Congress. Committee assignments are determined by each party and are approved by each respective chamber in the form of simple resolutions. The party ratio of each committee is determined by each party’s percentage in each chamber

MYTH vs. REALITY

MYTH: Members of Congress voted themselves a large pay raise for 2019 while action on federal employee compensation languished.

REALITY: Members of Congress did not vote on a congressional pay raise, choosing to freeze their pay instead. The Ethics Reform Act of 1989 established an automatic annual adjustment formula for congressional raises based on the Employment Cost Index (ECI), which measures changes in private-sector wages. Any increase may not exceed the percentage base pay increase for General Schedule (GS) employees. However, Congress can choose to vote to freeze its pay, separate from the raises for other federal employees, which it has done since 2010.

and negotiations amongst leadership. The committee assignment process for either chamber does not need to be completed on the first day of a Congress. Once organizational proceedings are complete, the chambers launch into various other activities, namely the introduction of legislation.

When a new Congress commences, legislation from the previous Congress expires and needs to be reintroduced. For that reason, you will notice there is no “Bill Tracker” in this magazine issue; this is because currently there are no bills to track. —BY SAM BARTELS, ADVOCACY ASSISTANT

NARFE, YOUR ADVOCATE IN CIVIL SERVICE MODERNIZATION DIALOGUES

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he federal civil service was created to put an end to the cronyism of the “spoils system” in favor of a merit-based, nonpartisan federal workforce and to ensure that government services are delivered to the public efficiently and effectively, free of political coercion. The civil service was last modernized by Congress in 1978, and since then, there has been considerable discussion about further modernization. Many proposals were put forth by a plethora of interested organizations with viewpoints hailing from across the ideological spectrum. Though there are many ideas, there is not always consensus for a pathway forward. To represent the interests of federal employees and retirees in this ongoing discussion, and to promote constructive changes to adapt the civil service to current public needs, NARFE Staff Vice President for Advocacy Jessica Klement and Deputy Director of Advocacy John Hatton participated in a series of civil service modern­ ization dialogues hosted by the

Senior Executives Association (SEA) and the Hoover Institution. The bold goal of these dialogues was to see if consensus could be built across the varying perspectives of the diverse and often divergent set of organizations participating. Participants started with an analysis of their basic assumptions about the civil service to build a shared foundation of thinking, and then took a deeper look at the reasons behind the call for modernization and what steps can be taken to adapt the civil service to the 21st century. The dialogues touched on subjects including professional development investment, reskilling and retraining the current workforce, flexibility to exit and re-enter federal employment, veterans’ preference, new technology adoption, hiring processes, the budget process, the use of contractors, the regulatory system, accountability and dealing with poor performers, and the need to involve all stakeholders in modernization efforts, including unions and veterans groups, for a (Continued on p. 8) W W W. N A R F E . O R G

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Washington Watch

GAO REPORT ADDRESSES POSTAL SERVICE RETIREE HEALTH BENEFITS FUND

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recent Government Accountability Office (GAO) study detailed the financial situation of the U.S. Postal Service (USPS) Retiree Health Benefits Fund, which pays most of the health benefits costs associated with roughly 500,000 postal retirees. Through fiscal year 2017 (FY17), the USPS was unable to contribute $38.2 billion in required payments to the fund due to agency finances, leaving it only 44 percent funded. If this trend continues, Office of Personnel Management (OPM) projections predict fund depletion in fiscal year 2030 (FY30). According to GAO, annual payments to the fund of $1 billion or $2 billion could fend off the depletion date by two to five years. In the report, GAO laid out proposed policy approaches to ameliorate the situation based on current legislative proposals in Congress and pertinent literature. NARFE made its opposition clear regarding legislative proposals that would force postal retirees to enter (Continued from p. 7) higher likelihood of success. Dialogue participants agreed that the framework of the Civil Service Reform Act is still sound, such as the codifying of the merit-system principles and the establishment of the Office of Personnel Management (OPM), the Merit Systems Protection Board (MSPB), the Federal Labor Relations Authority (FLRA) and the Senior Executive Service (SES). Consensus was reached in some areas, but predictably, disagreement also persisted in others. Though the three public forum dialogues concluded, the 8

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Medicare, removing postal retiree choice, balancing postal debt on the backs of retirees and setting the dangerous precedent that earned benefits can be altered in retirement. Another proposal is to fill in Postal Service Retiree Health Benefits Fund financial gaps with appropriations, allowing benefits to continue at the same level but increasing the federal budget deficit and altering USPS’ status as a selffinancing agency. NARFE opposes any approaches listed by GAO that would reduce postal retiree/employee benefits or increase premium costs, as our Advocacy Program clearly directs us to stalwartly protect federal and postal employee retirement and health benefits. We oppose eligibility restrictions, benefits reductions or elimination, increasing employees’ and retirees’ share of premiums, or limiting federal contributions to a fixed subsidy. Another GAO policy option is requiring 25 percent of fund assets process of combing through what was discussed and then distilling that into agreed-upon, concrete recommendations is still under way as of press time. Recommendations will be finalized in the form of a letter, which will then be sent to legislators. NARFE will continue to be a part of the dialogue process to represent the best interests of Feds and to provide insights for how to adapt the civil service to current needs. Do you have thoughts on civil service reform efforts? Email advocacy@narfe.org to share your views. —BY SAM BARTELS, ADVOCACY ASSISTANT

to be invested outside U.S. Treasury securities to provide greater returns. NARFE does not have a formal stance on this proposal. In assessing this proposal, we must determine if the status quo presents greater risks of insolvency than investing in outside securities that would provide greater returns over time, but could also lose value due to higher investment risk. NARFE supports the GAO proposal to reduce the requirement that USPS fully prefund retiree health benefits. The current prefunding policy drives costcutting strategies that hurt service standards and prohibits long-term investments to strengthen the agency and expand business. GAO recommends Congress pass legislation to return the fund to financial sustainability. NARFE will continue to be a part of the conversation of how to improve USPS finances and ensure that retirees’ earned health benefits are protected from degradation. —BY SAM BARTELS, ADVOCACY ASSISTANT

Legislative Resources • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE Legislative Department staff, distributed via email and available by phone (toll-free) at 800456-8410, option 4, and online at www.narfe.org. • Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.


HOW THE REDUCED FERS COLA CAME TO BE

C

ivil Service Retirement System (CSRS) retirees received a 2.8 percent cost-of-living adjustment (COLA) in January, but Federal Employees Retirement System (FERS) retirees only received a 2 percent adjustment. This unfair policy traces back to the origins of FERS in the 1980s, when the extension of Social Security to federal employees hired after 1983 necessitated the development of a new federal retirement system. In creating a new retirement system, policymakers were interested in reining in the growth of costs in federal civilian compensation.

Myriad arguments were made, including claims that COLAs were too generous and not available in the private sector. In 1985, legislation was proposed to create a new retirement plan with varying takes on how to determine the retirement COLAs of future hires. The Senate approved legislation with two retirement plan options; with positives and drawbacks for new hires to choose between based on their federal career plans. With respect to inflation protection for annuities, the first option eliminated COLAs for retirees under 62, used a full

COLA minus two percentage points formula for retirees between 62 and 66, and offered a full COLA to retirees age 67 and older. The second option offered a COLA determined by a full COLA minus 2 percentage points for retirees 62 and younger and a full COLA for retirees age 62 and older. At the same time, the House was brainstorming a revamp of federal benefits. Legislation introduced in the House would have supplied future retirees with full COLAs. Before the House could move forward, the Senate passed its (Continued on p. 10)

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Washington Watch

NEW CONGRESS, NEW THREATS? REGISTER FOR LEGCON19

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his month marks the beginning of the 116th Congress. The legislative process begins anew, and bills from the 115th Congress that weren’t signed into law will need to be re-introduced. Threats to your earned pay and benefits will likely rear their ugly head in the coming months, so NARFE members need to stay vigilant. While legislators settle into their new committee roles and get a feel for this new Congress, NARFE members will be gearing up to spread NARFE’s message and build relationships with legislators and congressional staff at LEGcon19, March 10–13, 2019, in Alexandria, VA. Do you feel comfortable expressing the concerns of the federal community with your legislators? Learn how to become an even better advocate. LEGcon19 is the opportunity to discuss issues that affect your earned pay and benefits with members of the 116th Congress. Register for LEGcon19 and you’ll take a deep-dive into legislation affecting Feds, and learn how to put your best foot

forward when communicating with legislators and congressional staff. Attendees will participate in engaging and informative training sessions and hear from Fed-friendly legislators about how they are fighting to protect what you’ve earned. Come prepared to learn about NARFE’s legislative priorities, advocate on behalf of the federal community on Capitol Hill and return home ready to lead local advocacy activities. Your attendance at LEGcon19 will position you as a key resource on the federal community for your legislators. Meetings on Capitol Hill are set for Wednesday, March 13, the final day of the conference, and will provide attendees the opportunity to walk the halls of Congress, meet with legislators and staff and spread the word about the positive work of the federal community. During the 116th Congress and beyond, NARFE members’ advocacy efforts will continue to be essential to NARFE’s success in preventing cuts to what you’ve earned. One of the best ways to

learn how to gain the support of your legislators—or learn where to start—is to attend LEGcon19. Registration for LEGcon19 is open to all NARFE members interested in developing advocacy skills and taking action on federal legislation. Register for LEGcon19 today at www.narfe.org/LEGcon19. On the website you’ll also find information about the Alexandria Mark Center Hilton Hotel; be sure to book your hotel room after you register for the conference and mention that you’re with NARFE to ensure you get the special room rate. The website also has information about breakout sessions, speaker profiles and more. Register today to save your spot at LEGcon19. You won’t want to miss out. If you’re already registered for LEGcon19, tell a friend! Spread the word to NARFE members and fellow federal employees and retirees about LEGcon19, NARFE’s Legislative Training Conference.

(Continued from p. 9)

FERS retirement program. As dictated by this law, if the COLA is below 2 percent, FERS retirees receive the full COLA; if the COLA is between 2 and 3 percent, FERS retirees only receive a 2 percent; and if the COLA increases by 3 percent or more, FERS retirees receive one percentage point less. Though this bargain balanced out the differing proposals of the time, it failed to account for

the fact that FERS retirees are impacted by inflation in the same way as other retirees living on fixed incomes. They earned the value of their annuities through hard work and service just like other retirees and deserve protection from inflation. NARFE worked with Rep. Gerry Connolly, D-VA, to rectify this inequity through legislation introduced in late November.

retirement provisions as an amendment to an unrelated House-passed bill. Adding the amendments sent the retirement provisions to a conference between the House and Senate to resolve a compromise retirement measure. On May 16, 1986, lawmakers produced a conference report and on June 6, President Reagan signed legislation ratifying the 10

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—BY MOLLY CHECKSFIELD, GRASSROOTS PROGRAM MANAGER

—BY SAM BARTELS, ADVOCACY ASSISTANT


Register today! NARFE Legislative Training Conference March 10-13, 2019

This is your chance to join NARFE members from across the country to: • Learn more about NARFE’s legislative agenda • Improve your advocacy skills • Attend meetings with members of Congress and advocate on your own behalf in the nation’s capital

The conference was very worthwhile; I learned a lot. The effort that went

into this comprehensive agenda was wonderful.”

Register today at www.NARFE.org/LEGcon19 LEGcon19 BREAKOUT SESSIONS

Attendees will have the opportunity to participate in training sessions such as: • • • • • • • •

Be Prepared – Mock Congressional Meetings Making the Most of NARFE’s Hill Day Advocacy 365 The Role of NARFE-PAC NARFE-PAC Leader Training Congressional District Leader Training State Advocacy 101 Ask the Experts

The conference will be held at the Mark Center Hilton Hotel, Alexandria, VA. Call 800-445-8667 to make reservations. Mention NARFE Legislative Conference. Hotel rate: $175 per night (plus tax) Discount parking available


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* FEP will pay a hearing aid benefit up to $2,500 total every 3 calendar years for adults age 22 and over, and up to $2,500 total per calendar year for members up to age 22. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in your FEP brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under FEP or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your FEP benefits first. To find out what is covered under your policy, contact the customer service number on the back of your member ID card. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. These items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the FEP’s Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the FEP, BCBSA, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The FEP reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time.

TruHearing is an independent company that provides discounts on hearing aids.


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† Price shown does not include cost of comprehensive hearing exam. Examination and testing for prescribing of hearing aids is covered under the Blue Cross and Blue Shield Service Benefit Plan. The member should confirm that the provider rendering the hearing exam is a Preferred provider. If the provider is Non-preferred, the member may be charged a maximum fee of $75 for the exam, and the member may need to submit a claim for reimbursement. Must be a FEP member to access TruHearing discounted pricing. ‡ Smartphone compatible hearing aids connect directly to iPhone®, iPad®, and iPod® Touch devices. Connectivity also available to many Android® phones with use of a phone clip accessory. § Hearing aid returns, repairs, and replacements subject to provider and manufacturer fees. For questions regarding fees, contact TruHearing customer service. TruHearing is offered through Blue365, which provides exclusive health and wellness deals and is a program of Blue Cross Blue Shield Association, an association of independent Blue Cross and Blue Shield companies. The Blue Cross® and Blue Shield® words and symbols, Federal Employee Program®, FEP® and Blue365® are all trademarks owned by Blue Cross Blue Shield Association. All content ©2018 TruHearing, Inc. All Rights Reserved. TruHearing® and Flyte® are registered trademarks of TruHearing, Inc. All other trademarks, product names, and company names are the property of their respective owners. Savings based on a survey of national average retail hearing aid prices compared to average TruHearing pricing. Actual customer savings will vary. Three follow-up visits must be used within one year after the date of initial purchase.


Questions & Answers

The following Questions & Answers were compiled by NARFE’s Federal Benefits Service Department staff. NARFE does not provide legal, financial planning or tax advice or assistance.

EMPLOYEES MARRIAGE AND SPOUSAL SURVIVOR BENEFITS

Q

I’m currently a Federal Employees Retirement System (FERS) employee, and I’m preparing to leave federal service sometime next year. I’m engaged and planning to get married shortly after I leave federal service. Is there any reason why we might want to move our wedding date prior to my separation from federal service?

A

If you want to provide a spousal survivor benefit from your annuity for your future spouse, then there are a few reasons why you should consider legally tying the knot before you separate from federal service. If you are vested under FERS and have more than 10 years of creditable federal service, and upon separation you plan to defer or postpone the application of your retirement under FERS, your future spouse would not qualify for a monthly spousal survivor benefit if you die before the commencement of your

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deferred/postponed annuity. However, if you legally marry before you separate from federal service, your spouse would qualify for a monthly spousal survivor benefit if you die before the commencement of your deferred/postponed annuity. If you are separating and applying for an immediate retirement and wait until after you separate to get married, you must wait until you have been married for nine months before OPM will allow you to elect a spousal survivor benefit. This means that if you die within the first nine months of marriage,

your surviving spouse would not qualify for a monthly survivor benefit from your annuity. Also, when you make this election after you have retired, there is a permanent reduction to your annuity in addition to the normal reduction for the cost associated with the spousal survivor benefit. The permanent reduction represents the total amount that your annuity would have been reduced had you made the election at retirement. This total amount is divided by your life expectancy and is a permanent reduction to your annuity. So if you outlive or divorce your spouse, the normal reduction for the cost of the spousal survivor benefit could cease, but the permanent reduction would continue for the rest of your life. If you get married before separating for an immediate retirement, the survivor benefit


you elect for your spouse at retirement is binding. If you die within the first nine months of marriage and have a child together OR if your death is deemed an accident, your surviving spouse could still potentially qualify for a monthly survivor benefit. Also, since there isn’t an additional permanent reduction to the normal reduction associated with the spousal survivor benefit elected at retirement, if you outlive or divorce your spouse, the normal reduction for the survivor benefit stops and your annuity is completely restored. One strategy you can use is to keep big wedding plans for friends and family after you separate from federal service, while having a private ceremony with the local Justice of the Peace to legally tie the knot before you separate.

SOCIAL SECURITY RESTRICTED APPLICATION

Q

My father just reached his full retirement age for Social Security last month. Instead of applying for his own benefit, he told Social Security that he only wanted to claim 50 percent of my mother’s benefit. He said this allows his work record to continue to grow with delayed credits and when he reaches the age of 70, he can switch over to his work record and claim his maximum benefit from Social Security for the rest of his life. Is this something that I can also do later in life when I reach my full retirement age?

A

Your father is able to file a restricted application with Social Security because he was born before January 2, 1954. This essentially allows him to claim 50 percent of your mother’s primary insurance amount from Social Security while simultaneously allowing his own benefit to grow. This also has the possibility of increasing your mother’s future widow benefit from Social Security if the benefit he waits to draw is larger than the benefit your mother is drawing. Your father would be giving away money if he wasn’t claiming something from Social Security now that he’s reached his full retirement age and is eligible for this type of claim. However, in your case, you would not be allowed to file a restricted application because you were born on or after January 2, 1954. This was a recent change to the Social Security law. In your case, if you are married to someone who also pays Social Security taxes, when you apply for Social Security, if eligible for a benefit based on both your record and your spouse’s record, Social Security will automatically give you the higher of the two work records unless you are widowed. There is an exception to this rule: If you are widowed by the time you qualify for Social Security, you can actually ask for a benefit from one record while allowing the other to continue to grow, if applicable. This rule also applies to former spouse benefits. If your

marriage lasts for 10 years, you can qualify for former spouse benefits if you are unmarried when you qualify for Social Security. Even if your former spouse predeceases you, you could still qualify for a former spouse widow/ widower benefit if you haven’t remarried before the age 60. If you haven’t done so already, take a look at the Social Security webinar that was presented by the NARFE Federal Benefits Institute in March 2018. Log in at www.narfe.org and locate the webinars link under “Resources.” We also recently touched on this subject in the September 2018 issue of NARFE Magazine, page 38.

TSP CONTRIBUTION LIMITS

Q A

Are the limits for how much we’re allowed to contribute into the Thrift Savings Plan (TSP) going up in 2019?

The regular elective deferral limit is increasing from $18,500 (2018) to $19,000 for 2019 contributions to TSP. This will apply to any pay periods with an effective pay date in 2019. On the other hand, the catch-up contribution limit for employees aged 50 or older will remain $6,000 in 2019, the same as it was in 2018. If you are a FERS participant and your contributions reach the (Continued on p.17) W W W. N A R F E . O R G

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Questions & Answers

Focus on Federal Benefits 2019 MEDICARE PREMIUMS

In 2019, the total cost of the monthly Medicare Part B premium is increasing from $536 (2018) to $542. This is slightly more than a 1.1 percent increase in the rate.

Since most enrollees with Medicare Part B only pay the standard premium, which represents 25 percent of the total premium, many enrollees will see their monthly Part B premium increase from $134 to $135.50. A smaller percentage of enrollees with higher income than most will also see an increase to their monthly Medicare Part B premium since they typically have to pay more than 25 percent of the total premium due to an Income Related Monthly Adjustment Amount (IRMAA). The chart below reflects the 2019 monthly rates for Medicare Part B, based on your modified adjusted gross income (MAGI) reported to the IRS on your 2017 tax return. Generally, your MAGI is the total of your household’s adjusted gross income plus any tax-exempt interest income you may have. These are the amounts on lines 37 and 8b of IRS form 1040. The items that contribute to your MAGI include any money earned through wages, dividends, capital gains, Social Security benefits, and distributions from tax-deferred retirement plans, such as Traditional IRAs and the TSP. Distributions from

Roth IRAs and Roth 401(k)s, life insurance, reverse mortgages and health savings accounts do not count in the MAGI calculation. Some Medicare enrollees that have been previously “held harmless” are currently paying less than the standard $134/ month premium in 2018. But since their Social Security benefit is increasing with a 2.8 percent cost-of-living adjustment (COLA) in 2019, they can expect their 2019 Medicare Part B premium to increase as well. In many cases, the small increase to their Social Security benefit will be partially or fully absorbed by the increase to their Medicare Part B premium. We often receive calls from members who wonder why the direct deposit payment from Social Security remains the same even though their neighbors will often see an increase to their Social Security payment due to the COLA. The reason is usually because their neighbors are already paying the standard premium.

If you remember the example from the January 2018 issue of NARFE Magazine, Robert’s Medicare Part B premium in 2017 was $109 and his monthly Social Security benefit was $1,000. In 2018, since his Social Security benefit received a 2 percent COLA, increasing it to $1,020, his Medicare Part B premium was increased to $129. His $20 increase in Social Security was fully absorbed by the increasing cost of his Medicare Part B coverage so his direct deposit from Social Security didn’t change. In 2019, Robert’s increase in Social Security will be partially absorbed by the increase in the Medicare Part B premium. His Social Security benefit will be increased by 2.8 percent to $1,048.56 and his Medicare Part B premium will be increased to $135.50. Robert’s $28.56/month increase in Social Security this year will be partially absorbed by the $6.50/month increase to his Medicare Part B premium.

INCOME-RELATED MONTHLY ADJUSTMENT AMOUNT For what you pay in 2019, if your MAGI in 2017 was: File Individual tax return

File Joint tax return

$85,000 or less

$170,000 or less

$85,000 or less

$135.50 (25%)

above $85,000 up to $107,000

above $170,000 up to $214,000

N/A

$189.60 (35%)

above $107,000 up to $133,500

above $214,000 up to $267,000

above $133,500 up to $160,000

above $267,000 up to $320,000

N/A

above $160,000 and less than $500,000

above $320,000 and less than $750,000

above $85,000 and less than $415,000

$433.40 (80%)

$500,000 or above

$750,000 or above

$415,000 and above

$460.50 (85%)

N/A

NOTE: All premiums listed in this article are per person/per month 16

Your 2019 monthly

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premium (% of total premium)

$270.90 (50%) $352.20 (65%)


(Continued from p.15) IRS elective deferral limit before your last pay date of the year, you will not receive all of the matching contributions to which you would otherwise be entitled. Use the following calculator on TSP’s website to ensure that you don’t leave any money on the table: www.tsp. gov/PlanningTools/Calculators/ electiveContributions.html You can also check with your agency payroll office for additional details.

RETIREES HOLD HARMLESS PROVISION

Q A

What is the hold harmless provision as it pertains to Medicare?

In 2019, the Part B standard premium will be $135.50. Most people with Medicare Part B will pay this amount. However, a small number of people pay a premium that is lower than this standard premium. These people have experienced protection by the hold harmless rule in the past. Without this provision, these people would have already been paying the standard premium which would have further reduced their Social Security benefit. Specifically, if you collect Social Security benefits and your Medicare Part B premium is deducted from those benefits each month (this is the case for the majority of people with Medicare), the hold harmless rule may apply to you. The hold harmless rule protects you from having your previous year’s Social

Security benefit level reduced by an increase in the Part B premium so long as: 1. You are entitled to Social Security benefits for November and December of the current year (2018); 2. The Medicare Part B premium will be or was deducted from your Social Security benefits in November 2018 through January 2019; 3. You do not already pay higher Part B premiums because of Income-Related Monthly Adjustment Amount (IRMAA) eligibility; and 4. You do not receive a cost-ofliving adjustment (COLA) large enough to cover the increased premium. COLA is additional income given to Social Security recipients to protect against inflation decreasing the benefit’s purchasing power. The COLA in 2019 will be 2.8 percent of your Social Security benefit. If the COLA in 2019 is not large enough to cover the full amount of your increased premium, you are held harmless and your premium will not increase up to $135.50. Instead, your premium increase will be the same as the increase in your Social Security benefit. Those who currently have the standard $135.50 Medicare Part B premium withheld from their Social Security benefit might be protected by this provision in the future. For example, the Centers for Medicare & Medicaid Services (CMS) will likely need to raise the Part B premium again many times in the future. If you experience a year with no COLA or minimal COLA to Social Security, the increase to the Part B premium cannot exceed the

increase to your Social Security. Refer to “Focus on Federal Benefits” sidebar on the facing page for more examples. Note: If you qualify for the hold harmless provision but pay a Part B late enrollment penalty, the penalty will not be waived, and it may increase. This is because the penalty will be calculated based on the new, higher premium— even if you are not paying that higher amount.

REFUNDED CSRS SERVICE

Q

What is this actuarial reduction to my Civil Service Retirement System (CSRS) annuity for unpaid redeposit service, and will it affect the monthly survivor benefit that I elected for my spouse?

A

It’s likely that you separated from federal service and took a refund of your CSRS contributions for a period of federal service that ended prior to March 1, 1991. If you were previously vested under CSRS (with more than 5 years of creditable civilian service) and returned to a retirement-covered position under CSRS, CSRS Offset, or with transfer to FERS upon rehire, the refunded service now counts toward both eligibility and computation purposes under CSRS rules, even if you decided not to repay (or redeposit) the money into the Civil Service Retirement and Disability Fund (CSRDF). Note: The rules are different if the period of refunded service ended on or after March 1, 1991 or if you weren’t previously vested under CSRS. An actuarial reduction allows W W W. N A R F E . O R G

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Questions & Answers

you to receive benefit without having to pay an amount due in a lump sum. The Office of Personnel Management (OPM) reduces your annuity in a way that, on average, allows the Retirement Fund to recover the amount of the missing lump sum over your lifetime. The actuarial reduction becomes a permanent reduction in your benefit. The amount of the actuarial reduction depends on your age and the amount of the lump sum you would otherwise have to pay at the time you retire. To compute an actuarial reduction, OPM divides the lump sum amount by the

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present value factor for your age at retirement. However, if you predecease your spouse, the amount still owed (if applicable) is deemed paid in full on the date of your death and will not have any negative impact on your surviving spouse’s annuity payment. To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

NARFE at Your Service At NARFE headquarters, experts are available to answer questions and to assist in helping with a variety of benefit matters. Call NARFE at:

800-456-8410, Option 2


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Cover Story 20

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By David Tobenkin

In 2011, after a physical setback, Department of Veterans Affairs podiatrist Joan Williams decided that she needed a challenge to prove to herself that she was still on the top of her game. So she decided to pursue a decades-old dream… getting a law degree. “For me, law school was like Mount Everest—I knew if I could do that, I could do anything,” Williams says. In 2015, at the age of 72, she graduated and became Joan Williams, JD. “You are never too old to pursue a dream,” Williams says. Life is about more than work. In a recent survey, NARFE Magazine asked readers about their dreams for big non-work accomplishments in the coming year and the years beyond, as well as those they had already crossed from their lists.

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Travel Travel was tops on the to-do lists of many survey respondents, and perhaps the single most frequently desired objective was to visit all 50 states. “I need to visit four more states to visit all 50—North and South Dakota, Minnesota and Wisconsin,” says accountant Elaine Hanak-Hall, a retired federal systems accounting employee. “Since I am so close, this has become important to me!” “Visiting all 50 states is important because I started this quest as a child on summer trips with my parents,” says another survey respondent, a computer systems analyst and project leader at several agencies. “I expect to visit the last, North Dakota, in 2019.” Variations on this theme included specific destinations in each state. “There is a book that lists the highest point in every state. You can get access to all but one or two,” says a retired U.S. Postal Service mail processor in Arlington, Texas. “It’s a good excuse to visit every state without running for president or another national office.” For Genevieve Boguslawski, it is about visiting all 50 state capitals. “I have visited over half of the state capitals so far,” says Boguslawski, a retired Department of Interior purchasing agent and contracting officer. Many have precise things they want to see or do on their travels, whether it is viewing the aurora borealis (Northern Lights), walking on the Great Wall of China or going on an African safari. Timing is critical for some, whether it is retired U.S. Forest Service employee John Marshall’s 50th wedding anniversary promise to his wife to visit Norway and England—“Need to do it this coming June. Short on funds. Chances are not good”—or a retired U.S. Department of Veterans Affairs employee who plans to travel to Finland this winter to see the Northern Lights: “The lights are on an 11-year cycle, right now is a good period, and figured I better go now because I might not be able to travel in another 11 years.” Among those already well-travelled, some seek exotic, remote or challenging locations to test themselves. The Galapagos Islands, the island chain that English scientist Charles Darwin visited and described in his seminal work on evolution, On the Origin of Species, was listed by many. And several mentioned perhaps the ultimate exotic, remote, and challenging location: Antarctica. “I would love to experience this other world of snow and ice,” says a former U.S. Department of Agriculture, Forest Service research ecologist. 22

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Connecting With, or Caring for, Others For some, the goal is to take time to deepen relation­ ships with loved ones or friends. “For the first time, I live in the same community with our youngest son and his family, which enables us to spend time with them each week,” says Michele Huffman, a former U.S. Department of Agriculture, Forest Service employee. “As I age, staying close to family grows in importance to me.” Another survey respondent expresses a desire to connect with an estranged son. For others, goals include making sure they do right by loved ones. “After three years of delays, I helped my 92-year-old dad move into a continuing care community in the first half of 2018,” says a retired computer systems programmer and project leader at several agencies. “My dad finally committed to the move. As an only child living 2,000 miles away, I was able to travel to help downsize his condo; coordinate the real estate agent, the move, and renovation contractors; help set him up in his new apartment; and provide emotional support for the transition.”


Contingent Goals

Creativity

Some goals listed by respondents will require the intervention of others, a good dollop of luck, or both. One respondent, for example, pines for a grandchild, a wish whose fulfillment she concedes is wholly outside of her control. Sometimes such dreams do come true, as was the case for Gary Koca, a retired Office of Personnel Management human resources specialist. “My beloved Chicago Cubs actually won the World Series while I was alive, in 2016,” Koca says. “I am a die-hard Chicago Cubs fan, so when the Cubs got that final out in the World Series, I just stood in the middle of the living room screaming with joy.”

Many describe writing projects as top goals. “I wrote a book about growing up in abject poverty which has been read by more than 600 people that was published in 2012, A Place to Lay My Head,” says Joe Moreland, a former Department of Interior employee. “The purpose of the book was to explain to my grandchildren what life was like when I was a child.” Another survey respondent has already put out a book on World War II. “I collaborated with Captain Charles Scheffel to tell his WWII combat experiences in the book, Crack and Thump! With a Combat Infantry Officer in World War II, published in 2007,” says Barry Basden, a former auditor and financial manager for several federal agencies. “The book led to Captain Scheffel being a major part of the History Channel’s 10-episode production of WWII in HD. Writing that book was the most satisfying thing I have ever done.” “I want to learn to sing,” says Beverly Wright, a retired FBI special agent. “It’s important because music makes people happy and if one can sing, then it can be done anywhere, no equipment required.” And Dan Adcock, a former legislative staffer, says he has already realized a goal by learning how to play the guitar in his 50s. One 69-year-old former Department of Defense elementary school educator says her goal is to develop applications for the iPhone. “Computers have been an obsession for me, ever since my first one back in the early 1980s,” she says. “I’m currently taking online courses on making apps, and I’m a registered Apple Developer. So far it’s just for fun, but who knows?” Carol Morgan, a former Environmental Protection Agency writer, wants to ramp up a fine arts career that already has featured exhibits of her figure drawing and pen drawings of individuals on buses within the Washington, D.C. Metro transit system. W W W. N A R F E . O R G

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Balanced Living One retired U.S. Department of Agriculture, Forest Service scientist lists as a goal of food improving her food sustainability. “I’d like to grow and raise enough of my own food to sustain my family of two,” she says. “This past year I had a beautiful garden and raised a few chickens and two turkeys for eggs and meat and friends raised a pig for us. The work keeps me healthy, and the food is free of pesticides, herbicides, and hormones and is obviously local. I can’t raise everything, but it helps, and a partial accomplishment is fine with me.”

Civic and Social Goals Many aspire to pursue civic and social activism goals. “Global climate change is the most important issue of our time, and I want to support solutions to this crisis that will hurt our grandchildren,” says Huffman. “We put solar panels on our home and purchased a plug-in electric hybrid car with a small carbon footprint.” Another says he is speaking out more often on political affairs of the day. “I had always wanted to start a blog and write about anything that came to my mind, including occasionally politics, but the Hatch Act prevented me from ever writing about partisan politics,” says Martin Schwartz. “ [After retirement], I finally did start that blog and now have a small readership. It’s fun to do, and I’ve met other retirement bloggers who have interesting perspectives on their own lives.” Some mention taking action to prevent and fight cancer. “My goal is to educate my local medical community in detecting uterine cancer earlier,” says a retired computer system programmer and project leader for several agencies, who is herself a uterine cancer survivor. “I want to make early diagnosis of uterine cancer a reality for more women and help the medical community improve their detection of misdiagnoses. I’m helping our local cancer center with an education campaign that will reach their doctors, nurses and other staff to teach them about my cancer, misdiagnosis and quality of care.” 24

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Work Thomas Longo, whose illustrious U.S. Foreign Service career was described in a June 2015 NARFE Magazine story, notes that reforming the State Department’s time-in-grade rule that can force foreign service officers out of the service, as was the case for him, remains a priority.


Putting Affairs in Order For some, the mission is getting things tidy—in a permanent sense. “I’m working on the ‘Swedish Death Cleaning’ called Dostadning—getting rid of stuff now so that no one else has to do it when I die,” says a retired Department of Defense Education Activity school psychologist. “I had a difficult time going through my mother’s things, and I don’t want my husband or children to be left with all my stuff to go through.”

Fitness and Sports “I want to compete in an Ironman [triathlon],” says Hal Brockman, a retired 67-year-old U.S. Forest Service employee who says he finished his first 26.2 mile marathon run at age 58. The Ironman triathlon involves a marathon run, in addition to 2.4-mile swim, and a 112mile bicycle ride, roughly twice the distances for a half Ironman, which Brockman says he already completed at age 60. After completing four marathons and still needing to shave another 25 minutes to qualify for perhaps the most prestigious U.S. marathon, the Boston Marathon, he says that race has been removed from his list: “Sometimes you have to swallow your pride and realize you are not, and never will be, good enough to reach some goals.” Some say it is never too late to conquer physical fears. “I almost drowned when I was a child and getting in the pool or the beach terrifies me,” says 66-year-old Carmen Ortiz, a U.S. Department of Agriculture programmer and webmaster. “Learning to overcome my aquaphobia by taking swimming lessons now has given me an incredible feeling that I can accomplish anything I set out to do.” Noah Kaufman, 41, a Department of State employee, hopes to compete in international wrestling tournaments. “I have wrestled for more than 28 years and want to have the opportunity to represent the USA,” Kaufman says. Tracy Kelley, a 60-year-old Defense Logistics Agency employee, hopes to take up kickboxing after retiring at the end of 2018.

The Lists of Others And some say that they are living out the bucket lists of others “My husband was a lineman with Bonneville Power Administration who passed away in 2008 and I am doing his bucket list,” says Carol Woodward. “It has given me a reason for living. Being a lineman, he had no fear of heights, while I, on the other hand, wasn’t [really] comfortable with heights. His list set me free to explore things I never would and it showed me that I had the strength to conquer my fears. Paragliding off a mountain, an item on his list, gave me so much power that I have gone back and done it again. It felt like I was sharing a moment in my heart with someone I loved. And to be 65 years old and jump out of an airplane—I cherish each and every moment of that jump. Everything I have done has brought joy and life back to me. I am still terrified of bungee jumping, and it may never get done, but it is still on the list!” —DAVID TOBENKIN IS A FREELANCE JOURNALIST BASED IN THE GREATER WASHINGTON, D.C. AREA W W W. N A R F E . O R G

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to Time Retire? What retirement-eligible federal employees should consider before turning in their papers By Everett A. Chasen

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To retire, or not to retire? For many federal employees of retirement age with sufficient years of creditable service, that is the question they often ask themselves. Some can’t wait to reach the month and year when they have enough service time and birthdays to turn in their paperwork and begin a life of leisure or an entirely new career. Others would love to leave federal service, but can’t afford to trade in their paychecks for a smaller monthly annuity. Others are genuinely torn—they love, or at least like their work; think their annuities and Thrift Savings Plan (TSP) savings will cover expenses in retirement, but are not sure; and worry about unexpected expenses they’ll have to face on a fixed income. For them, the decision to “cut the cord” is not easy. While we can’t help decide whether you like your job well enough to stay on forever, here’s some help understanding the financial implications of retiring and hints on what to do while you’re still working to maximize your financial resources and minimize your anxiety about whether your nest egg will last as long as you do.

OPM’S ADVICE

Kenneth J. Zawodny, Jr., associate director for retirement services for the Office of Personnel Management (OPM), has simple guidance for those considering retirement. “Planning, planning and more planning,” he suggests. In calendar year 2017, according to OPM, 95,923 federal employees turned in their retirement paperwork.

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OPM’s website includes tools to help with retirement planning. Zawodny recommends the Federal Ballpark E$timate® tool, developed by the Employee Research Institute and its American Savings Education Council (ASEC®) program. The tool includes projected federal annuity and Thrift Savings Plan (TSP) benefits to help quickly identify approximately how much you need to save for a comfortable retirement. It’s available at www.opm.gov/retirementservices/calculators/federal-ball-park-estimator, and is useful for employees covered by the Civil Service Retirement System (CSRS), the Federal Employees Retirement System (FERS), and the CSRS Offset system. The calculator is a retirement savings planning tool and should not be employed to estimate the amount of your federal pension. However, it can be used even at the beginning of your career to get you thinking about how the way you save can help you go down the road to retirement. Want to know when you are eligible to retire? That information is available to FERS employees on OPM’s website at www.opm.gov/retirementservices/fers-information/eligibility/; and for CSRS and CSRS Offset employees at www.opm.gov/ retirement-services/csrs-information/eligibility. Of course, the longer you work, the larger your pension will be—but CSRS annuities cannot exceed 80 percent of your high-3 average salary, excluding accumulated sick leave. Generally, CSRS employees reach the 80 percent limitation when they have 41 years and 11 months of service time.


Staying on allows you and the government (for FERS employees) to contribute more to your tax-deferred TSP accounts. Outstanding TSP loan balances are declared to be income roughly 60 days after retirement, and employees retiring before the age of 59½ face 10 percent early-withdrawal penalties on money taken out of the TSP if they take out funds before they reach that age. Zawodny also recommends checking out financial planning tools OPM has assembled from external sources at www.opm.gov/retirement-services/ benefits-officers-center/#url=Financial-Literacy.

“NARFE’s website offers a list of the 10 most costly retirement mistakes federal employees can make.” These include a worksheet to track monthly income and expenses; compound interest, savings and IRS withholding tax calculators; and information on managing debt, retirement planning and managing income over a lifetime. The website’s “Planning and Applying for CSRS and FERS retirement” page (www.opm.gov/ retirement-services/csrs-information/planningand-applying/#url=Within-Months) provides information on what to do once you’ve made the decision to retire.

In September 2018, James Marshall, deputy director of NARFE’s Federal Benefits Institute, led a webinar designed to help those considering retirement execute a perfect transition. NARFE members can watch a recording of the webinar at www.narfe.org/member/articles.cfm?ID=4443. Zawodny suggests starting the planning process for retirement with your agency at least a year in advance, and no less than six months out, and that your first stop should always be your HR office or agency benefits officer. Veterans who are also federal employees can increase their annuities by making military deposits for creditable military service, in effect “buying back” their military service time and waiving their military retired pay in favor of their federal retirement annuity. The rules for how the program works differ for CSRS and FERS. More information can be found here: www.dfas.mil/civilianemployees/ militaryservice/militaryservicedeposits.html. It’s important to know, however, that this credit deposit must be paid before you retire, and that the Department of Defense takes about 60 days to compute the amount you owe—so OPM recommends starting the process at least six months ahead of your planned retirement date. OPM also recommends choosing your retirement date at least two months before you plan to leave, and that two months before retirement is also the time to complete your retirement application; request direct deposit of your annuity checks; and begin the process of withdrawing any money you want to take out from your Thrift Savings Plan (www.tsp.gov) account upon retirement. FERS employees should also review their Social Security accounts (www.ssa.gov). OPM offers information on how retirement information is computed for FERS employees at www.opm.gov/retirement-services/fers-information/computation, and for CSRS employees at www.opm.gov/retirement-services/csrs-information. Don’t forget retirement annuities are based on your highest three years of salary, so if you recently received a grade or other pay increase, you will need to remain at that level for three years to get the maximum retirement benefit.

NARFE’S RECOMMENDATIONS

NARFE’s website (www.narfe.org) offers a list of the 10 most costly retirement mistakes federal employees can make. Prominent among those is missing the chance to contribute significantly to the TSP. The website notes that the TSP is intended to make up one-third of FERS employees’ income in retirement— and that employees over age 50 who contribute the maximum to the TSP can make $6,000 in “catch-up” contributions. W W W. N A R F E . O R G

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“Those considering retirement should not leave annual leave calculations to the last minute.”

NARFE also suggests those considering retirement should not leave annual leave calculations to the last minute. Most non-SES federal employees have a ceiling of 240 hours of annual leave to carry over from one year to the next. Leave above that ceiling must be used during the calendar year, or it is lost. Employees who carry over 240 hours of annual leave and plan to retire the following year can be paid a lump sum amount for those hours, plus whatever they accrue in the next calendar year. The article suggests checking on this closely if you plan to retire at the end of the calendar year. The site reminds NARFE members they cannot continue in the Federal Employees Health Benefits (FEHB) program if they have not enrolled in it five years before retirement. Some employees decline FEHB because they were covered by a spouse’s private-sector health plan—but, unlike FEHB, many private-sector plans end when enrollees retire or become eligible for Medicare. NARFE recommends that to preserve this valuable benefit, employees in this situation should enroll in a low-cost self-only FEHB plan and use the opportunity to change to family coverage during a future Open Season. It also reminds CSRS employees not to expect to receive a full Social Security retirement, because the Windfall Elimination Provision (WEP) can reduce their earned Social Security benefits by up to 60 percent—and under the Government Pension Offset (GPO), they can lose all of their survivor Social Security benefits. Finally, the article cites the single worst mistake federal employees can make, which is waiting until retirement to join NARFE. NARFE helps bridge 30

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the gap in knowledge and understanding many employees have about their benefits through this magazine; the NARFE Federal Benefits Institute; the NARFE website; informational brochures and emails; chapter meetings; and chapter service officers, who help members with retirement issues.

TWO EMPLOYEES’ STORIES

Larry Papier has worked for more than 41 years for three federal agencies, and is not retiring yet. Although Papier is rapidly approaching the point at which he will receive the maximum CSRS retirement annuity of 80 percent of his highest-paid three years of service, he continues to serve in a GS-15 executive assistant position. “I’ve been thinking about retiring for a few years,” he tells us, “but I have to put two kids through college.” Papier married late in life, at the age of 50, and he and his wife have 8- and 16-year-old boys. For him, retirement from the federal government won’t mean a life of leisure, but simply a change in jobs. He “ran the numbers” on his retirement benefits about a year ago, but has not taken a retirement seminar, because “I am not retiring.” He found a gap of about $2,000 a month between the annuity he would receive once he reached the maximum annuity level and the amount he and his family will need for living expenses. Accordingly, while he is not considering retirement, he is considering the possibility of working for a lesser salary at a lower-pressure position—one in which he will no longer have to travel from suburban Maryland to Washington, D.C. “I’ve been commuting downtown for more than 35 years,” he explains.


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He believes his federal experience has made him very marketable despite his age, especially to state and local governments. “I’ve been honing my writing skills at my current job,” he says, “and I have a lot of experience managing contractors. Those skills are very transferrable to other government agencies.” He has recently begun applying for jobs with the State of Maryland, and believes, for the right job, he could accept as much as a 50 percent cut in salary. “Make sure you have your finances lined up so you can afford to retire,” he advises. “One way to insure financial security in retirement is by investing heavily in the TSP. Try to max out your TSP set-aside.” He also notes that unused sick leave is now fully creditable toward retirement for both CSRS and FERS employees. By contrast, Mary Jo Munnelly, who spent 33 years with one federal agency (the Department of Veterans Affairs) just retired in November of 2018, within months of becoming eligible to do so. Munnelly, a lead staff assistant for VA’s Voluntary Service program, has long planned to retire when she reached her minimum retirement age. “If I was able to do so, that’s what I was going to do,” she tells us. “My mom passed away when she was young, as did her twin sister, so I positioned myself financially to be able to go out early. “My husband is a little older than I, so he’s already retired. I just want to enjoy life, enjoy him and my family, and enjoy my new grandbaby. My mother-in-law, sister-in-law and neighbor watched my children when I was working, so I want to give back in that way. I want to be a part of my grandson’s life.” Munnelly, who already does some volunteer work, doesn’t expect to go back to work after retirement. “I’ve got a lot of things to do,” she says. “I can’t imagine I will be bored.” With her commute, she now spends almost 12 hours away from home every workday. “I just want to sit back, have a cup of coffee, and relax. Enjoy my house, and enjoy my yard.” 32

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She attended a retirement seminar to help her plan this future, and recommends others attend them at least three to five years before they retire. She also recommends networking with others. “The more people I talk to about retirement, the more I learn.” One issue Munnelly tracked closely was the future of the FERS Annuity Supplement. Under current rules, employees covered by FERS who retire before age 62 are eligible to receive a retirement supplement annuity until they are eligible to receive Social Security retirement benefits. Recent budget proposals have recommended this annuity be eliminated for current as well as new employees, which might have affected her decision. This has not happened, however, so her plans remained unchanged. “You have to plan early,” she concludes, “because you have to be financially capable to retire. My dad moved us around for work a lot, and when he was older he still had a high mortgage to carry. That very much affected my thinking. We helped our children through school and into adulthood, and now I’m hoping my plan will carry me through.”

“While you may have had many jobs over your career, you will only have one retirement.” Any discussion about retirement calculations and budgeting should not obscure this fact: if you don’t really want to retire, don’t. Federal employees do valuable and important work, which many employees love doing and will miss if they can no longer do. Their professional identities are important to them, as is the stature they gain from their jobs. Take this, too, into account as you make your retirement decision. OPM notes it is now processing new retirement claims in an average of 58 days, but prospective retirees should know that until their claims are processed, they will receive only a partial “interim annuity” until the office makes its final calculations. You may need other sources of funds until OPM completes its work. “Take as much time to prepare for retirement as you did to prepare to be hired. While you may have had many jobs over your career, you will only have one retirement,” Zawodny says. —EVERETT A. (EV) CHASEN IS A WRITER AND COMMUNICATIONS CONSULTANT IN THE WASHINGTON, D.C. AREA. HE IS RETIRED FROM THE FEDERAL GOVERNMENT AFTER 35 YEARS OF SERVICE.


Special Section

NARFE’S ADVOCACY PROGRAM FOR THE 116th CONGRESS (2019-2020) NARFE’s Advocacy Program for the 116th Congress (2019-2020) provides an extensive and specific enumeration of NARFE’s member-endorsed positions on legislative and administrative positions. In pursuing these, NARFE will defend the earned pay, benefits and compensation of federal and postal civilian employees and retirees. NARFE advocacy primarily focuses on the following priorities: ·· Protecting federal and postal retirees’ existing retirement and health benefits from reductions and/or erosion. ·· Protecting federal civilian and postal employees’ pay, retirement and health benefits. ·· Protecting the viability, stability and standard of service of established federal government functions.

programs on a regular annual schedule, computed on the same basis and paid at the same time, regardless of age and/or income level. NARFE opposes across-the-board cuts not required in all federally administered retirement programs. ·· NARFE supports a Consumer Price Index (CPI) based on the objective analyses of Bureau of Labor Statistics (BLS) professionals, and opposes any politically arbitrary changes in the CPI, including the Chained CPI. ·· NARFE supports changing the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) to the CPI-E (Consumer Price Index for the Elderly) as the standard for determining the annual COLA.*

RETIREMENT

Legislative goals followed by an asterisk * require the introduction of legislation.

FEDERAL RETIREMENT BENEFITS ·· NARFE supports cost-of-living adjustments (COLAs) for all federally administered retirement

Language printed in italics is new to the Advocacy Program for the 116th Congress.

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

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116

·· NARFE supports legislation to repeal the increase

in pension contributions of new federal employees, enacted in February 2012 and December 2013, and opposes other future reductions in federal retirement benefits.* ·· NARFE supports legislation that permits civilian federal employees to deposit bonuses and performance awards in any form into the Thrift Savings Plan (TSP) on a tax-deferred basis.* ·· NARFE supports legislation to conform the TSP regulations to Internal Revenue Service (IRS) regulations on other qualified retirement savings plans.* ·· NARFE supports legislation to authorize the Federal Retirement Thrift Investment Board (FRTIB) to take legal action to protect the interests of TSP account holders in accordance with its fiduciary responsibilities.* ·· NARFE supports legislation or regulations that require financial advisors to provide advice regarding retirement investments that is in their clients’ best interests, not their own. ·· NARFE supports legislation to enhance deferred federal annuitant retirement benefits.* ·· NARFE supports legislation to provide retiring federal employees the option of electing and paying the actuarial cost of additional survivor annuity amounts in 5 percent increments, up to 75 percent of an unreduced annuity.* ·· NARFE supports legislation that would allow the recalculation of retirement annuities for federal employees who have retired since 1994 and who worked in Hawaii, Alaska or the U.S. Territories and who pay the contributions to the Civil Service Retirement and Disability Fund (CSRDF), and income taxes that they would have paid had locality pay been available to them prior to their retirement.* ·· NARFE supports legislation to provide equitable tax treatment of government retirement benefits comparable with Social Security.* ·· NARFE opposes any action that erodes the solvency of the CSRDF and supports providing full public disclosure of the fiscal stability and financial obligations of the Fund. SOCIAL SECURITY ·· NARFE opposes investment of the Social Security reserves in investments other than Treasury securities. ·· NARFE opposes replacing any portion of Social Security benefits with private individual accounts. ·· NARFE supports the repeal or reform of the Social 34

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Security Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).* ·· NARFE supports legislation that would require the Social Security Administration to report annually the amount of WEP penalty to affected individuals.* ·· NARFE supports raising the Social Security payroll tax cap to cover a greater amount of annual earnings for those with higher incomes.* ·· NARFE supports indexing the income threshold on taxable Social Security benefits.* ·· NARFE is guided by the following six Social Security principles to provide: 1. A benefit people can depend on; 2. Financial security for the disabled, survivors and dependents (i.e., social insurance); 3. Universal and fair coverage; 4. Deliberate redistribution of benefits to lower income beneficiaries; 5. Efficient administration of the program (less than 1 percent overhead costs); and 6. Full cost-of-living adjustments (COLAs). FEDERAL PAY AND WORKFORCE POLICIES

·· NARFE supports full implementation of federal

employee pay parity as reflected in the Federal Employees Pay Comparability Act of 1990 (P.L. 101-509). ·· NARFE supports legislation that would afford federal employees serving in combat zones the same tax treatment as their military counterparts.* ·· NARFE supports providing federal employees paid parental leave.* ·· NARFE opposes legislation to arbitrarily decrease Federal Employees’ Compensation Act (FECA) benefits. ·· NARFE opposes policies on contracting out of federal jobs that put employees at a disadvantage in the competitive process. ·· NARFE opposes proposals that would privatize inherently governmental functions. ·· NARFE specifically opposes contracting out the processing and maintenance of federal personnel records. HEALTH CARE FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM The Federal Employees Health Benefits (FEHB) Program is the nation’s most efficiently


administered and cost-effective employersponsored health insurance plan, providing coverage to employees, retirees and their spouses and dependents. As such, NARFE will continue to actively participate in discussions with the Office of Personnel Management (OPM) regarding premiums, coverage, terms, conditions and marketing of FEHB Program plans. To maintain affordability and integrity of the program, NARFE supports: ·· Providing incentives for enrollment in Medicare Parts A and B for those eligible, including improved coordination of benefits that would reduce out-ofpocket health care costs, and reimbursement for Part B premiums, providing premium relief for those enrolled in Part B. ·· Legislation that would ensure all FEHB enrollees receive the same level of prescription drug coverage, by plan;* ·· Legislation to amend Section 125 of the tax code to allow federal retirees and survivors to pay: 1. Their share of FEHB and other employersponsored health insurance premiums with pretax annuities;* 2. Health care costs not covered by traditional health insurance and child and adult dependent care with pretax annuities deposited by annuitants in Flexible Spending Accounts (FSAs)* ·· Efforts to contain FEHB costs, including initiatives to rein in prescription drug expenses, particularly the use of the federal supply schedule by FEHB plans to purchase prescription drugs on behalf of enrollees. To protect the program, NARFE opposes: ·· Reductions in government contributions toward FEHB premiums; ·· Adding conditions, such as a requirement to enroll in Medicare Part B, to the continued receipt of FEHB benefits for current retirees and their spouses; ·· Authorizing, encouraging or forcing participants into Health Savings Accounts, Medicare Savings Accounts, Medical Savings Accounts, “customerdriven,” “consumer-driven” or “patient-directed” plans in the FEHB; ·· Broadening participation in FEHB, unless separate risk pools are created; ·· Requiring federal agencies to prefund the

government/employer’s share of post-retirement FEHB premiums for their current employees; ·· Risk segmentation of FEHB participants based on age or Medicare enrollment; ·· Proposals that would allow Flexible Spending Accounts (FSAs) to be used in conjunction with high-deductible catastrophic health insurance to form an alternative version of a Health Savings Account; ·· Increases in the enrollee co-payment for purchase of prescription drugs in FEHB by federal annuitants who participate in Medicare; and ·· The Office of Personnel Management’s decision to forgo the Medicare employer subsidy to which the FEHB is entitled. NARFE will actively pursue the subsidy for the purpose of offsetting FEHB premiums charged to the government/employer and all enrollees. MEDICARE NARFE supports: ·· Protecting Medicare’s guarantee of basic health security for older Americans at affordable and predictable prices; ·· Applying the effect of the hold harmless provision to all Medicare beneficiaries permanently;* ·· Preserving the current Medicare fee-for-service program, including the ability to select the physician of your choice; ·· Ensuring that the Medicare drug program does not require beneficiaries who receive such coverage through other insurance to pay additional premiums;* ·· Repeal of means-testing of Medicare premiums;* ·· Reducing the penalty imposed on those who do not enroll in Medicare Part B at the time they become eligible;* ·· Enhancing Medicare prescription drug coverage, including authority for the federal government to negotiate drug prices for the entire program; simplify and stabilize coverage; and provide equal coverage throughout the United States and its territories;* and ·· Allowing pharmacies to buy prescription drugs from pharmaceutical manufacturers for Medicare beneficiaries at the same average discount available in industrialized countries.* NARFE opposes: ·· Means-testing cost-sharing requirements; ·· Increasing the Medicare eligibility age; W W W. N A R F E . O R G

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116

·· Requiring home health care co-payments; ·· Proposals that would give private Medicare plans

an unfair competitive advantage over the current Medicare fee-for-service program and undermine the present program’s ability to share health care costs over a wide community of coverage; and ·· Proposals that limit the government’s share of Medicare premiums through a formula that does not accurately reflect the costs of providing health care to beneficiaries. LONG-TERM CARE ·· NARFE supports the integrity and affordability of the Federal Long Term Care Insurance Program (FLTCIP). ·· NARFE supports the guarantee of long-term care benefits for individuals presently eligible for Medicaid, adequate state and federal contributions to Medicaid to finance program needs, and standards of care and safety that all providers must follow in order to receive reimbursement. ·· NARFE supports proposals to develop and coordinate a comprehensive long-term care policy that would include public and private initiatives that address financing, choices and quality service.* ·· NARFE supports tax relief for the purchase of longterm care insurance, family caregiving and other long-term care expenses.* ·· NARFE supports proposals that would help individuals who cannot afford long-term care insurance or have a need for long-term care to receive such services without impoverishing themselves or their spouses.* ·· NARFE supports nursing home reform, including efforts to ensure that long-term care facilities are adequately staffed with experienced professionals in the medical disciplines of gerontology and nursing, and that such individuals continue to receive training and are adequately compensated.* ·· NARFE opposes further limitations on, and supports easing of, asset rules that prevent severely disabled persons from qualifying and receiving Medicaid long-term care benefits.* U.S. POSTAL SERVICE REFORM

·· NARFE supports legislation to maintain the service standards in place as of July 2012, including preservation of six delivery days per week by the

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U.S. Postal Service (USPS) nationwide and to-thedoor delivery at its 2012 levels.* ·· NARFE will join with other federal and postal organizations to seek legislation to keep small post offices open throughout the United States.* ·· NARFE supports legislation to relieve the U.S. Postal Service of its overly burdensome requirement to prefund its future retiree health care obligations that are estimated to accrue over the next 75 years.* ·· NARFE supports legislation to allow the Office of Personnel Management to make payments for any refund due to the USPS from the Civil Service Retirement and Disability Fund (CSRDF), on the condition that such payments would not result in the reduction of federal annuities paid to retirees and survivors.* OTHER PROVISIONS

·· NARFE supports legislation permitting drugs

made in the United States or other industrialized countries, and exported to third-party industrialized countries, to be reimported, or imported, to the United States, and preventing pharmaceutical manufacturers from limiting the sale of drugs to other countries for the purpose of discouraging reimportation.* ·· NARFE supports legislation that would provide comprehensive patient protections to consumers enrolled in health plans regulated by federal and state law, and also would allow such individuals to sue their plans for wrongful denials of care.* ·· NARFE supports the reauthorization of, and adequate annual appropriations for, the Older Americans Act to ensure the continuation and enhancement of community services for senior citizens of all income levels.* ·· NARFE supports legislation that would grant statehood to the District of Columbia.* ·· NARFE supports legislation and other changes necessary to extend to the delegate from the District of Columbia the same right to vote on the floor of the U.S. House of Representatives as is afforded to all other members of Congress.* ·· NARFE supports campaign finance reform legislation that would increase the effect of small-dollar individual contributions on political campaigns and grassroots-based political action committees relative to high-dollar individual contributions.*


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Managing Money

REASONS FOR NAMING A TRUST AS BENEFICIARY

L

ast month’s column discussed the rules for qualifying a trust as a “look-through” or “seethrough” trust to preserve the “stretch” strategy of

taking Required Minimum Distributions (RMDs) over the life expectancy of the oldest trust beneficiary. In this month’s column, we’ll take a deeper dive into some of the reasons why, or circumstances when, naming a trust may be appropriate.

Financially Irresponsible Beneficiaries Naming your child as beneficiary and providing free reign over an inheritance worth hundreds of thousands, or millions, may not be the wisest idea. Instead, naming a trust with a spendthrift provision, which limits the amount of money a beneficiary may spend, may be the better choice. Special Needs Beneficiaries If you have a child, or bene­ ficiary, with a physical and/or mental disability, you’ll want to name a trust as beneficiary. In this case, you’ll use a special needs trust, which in addition to providing necessary funds for the special needs beneficiary, may also ensure the beneficiary doesn’t lose any governmental disability benefits he or she may qualify for. Complicated Family Family composition can be complicated. If you have children from a previous relationship, and you want them to receive 38

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your retirement plan after your current spouse dies, you’ll need to use a trust to guarantee this happens. When you name a trust as beneficiary, you may use the trust to dictate how much your surviving spouse receives from your retirement plan during his or her lifetime, while ensuring the remainder passes to your children. Asset Protection Employer plans, such as 401(k) s and the TSP, are afforded strong federal protections against lawsuits and bankruptcy proceedings. And while IRAs are not protected from civil lawsuits at the federal level, they do benefit from limited protection in bankruptcy proceedings. However, in Clark v. Rameker, 34 S.Ct. 2242 (2014), the Supreme Court ruled that inherited IRAs are not “retirement funds,” and therefore, are not federally protected in bankruptcy proceedings. As a result, many IRA and retirement plan owners with financially unstable children

BY MARK A. KEEN,

CFP®

or with children in high-risk professions may wish to protect their retirement assets from lawsuits and bankruptcy when those assets pass to their children. Trusts can provide enhanced creditor protection, and in many states, protection in the event of divorce and civil lawsuits. Per Stirpes Designations When designating a TSP beneficiary, you may name a contingent beneficiary to a primary beneficiary, but you may not use a per stirpes designation. A per stirpes designation means a deceased beneficiary’s share will be paid out to his or her descendants. For example, if you named your child as beneficiary, and that child died before you, your deceased child’s share would go to his or her children (your grandchildren). If one of those grandchildren had also died before you, that grandchild’s share would go to his or her children (your great grandchildren) and so on. The only way to have a per stirpes designation would be to rely on the TSP’s order of precedence, which applies when you have no named beneficiaries. In that case, your TSP will be distributed according to the order of precedence as follows: • To your spouse; • If none, to your child or children equally, and to


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

descendants of deceased children by representation; • If none, to your parents equally or the surviving parent; • If none, to the appointed executor or administrator of your estate; • If none, to your next of kin who is entitled to your estate under the laws of the state in which you resided at the time of your death. “…and to descendants of deceased children by

representation” is the language for a per stirpes designation. But what if you don’t want your TSP to go to your spouse first, or you don’t want your children to receive equal shares? Or perhaps, you have a non-child beneficiary, and you want that beneficiary’s share to pay out per stirpes to his or her descendants. In these cases, you’re out of luck unless you name a trust as beneficiary and have that trust payout according to your wishes. There are many reasons why you may want to name a trust as beneficiary rather than individuals directly. Next month, we’ll discuss the mechanics and tax implications of naming a trust as beneficiary. 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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2018

G FUND

F FUND

C FUND

S FUND

I FUND

NOVEMBER

0.26%

0.62%

2.04%

1.92%

-0.13%

OCTOBER

0.26%

-0.78%

-6.84%

-10.06%

-7.94%

SEPTEMBER

0.24%

-0.62%

0.57%

-1.76%

0.91%

YTD

2.65%

-1.65%

5.08%

1.61%

-9.04%

1 YEAR

2.85%

-1.18%

6.24%

2.08%

-7.58%

3 YEAR*

2.33%

1.56%

12.17%

10.33%

4.50%

5 YEAR*

2.27%

2.39%

11.16%

8.53%

2.19%

10 YEAR*

2.30%

3.92%

14.37%

15.49%

7.80%

*ANNUALIZED

L INCOME 2018

NOVEMBER

L 2020

L 2030

L 2040

L 2050

0.53%

0.65%

0.99%

1.12%

1.22%

-1.40%

-2.24%

-4.60%

-5.54%

-6.35%

SEPTEMBER

0.21%

0.22%

0.23%

0.22%

0.21%

YTD

2.05%

1.86%

1.12%

0.76%

0.47%

OCTOBER

1 YEAR

2.48%

2.45%

1.94%

1.68%

1.48%

3 YEAR*

3.83%

5.35%

6.96%

7.70%

8.38%

5 YEAR*

3.60%

4.94%

6.11%

6.69%

7.16%

10 YEAR*

4.68%

8.16%

9.78%

10.84%

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

2017

2018

For the Record

INTEREST RATES, TRADE CONCERNS IN NOVEMBER

THRIFT SAVINGS PLAN FUND RETURNS

Claims Received

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

OCTOBER 8,850 18,860 NOVEMBER 5,572 19,294 DECEMBER 5,568 14,515 JANUARY 14,590 20,467 FEBRUARY 13,290 24,225 MARCH 7,767 18,730 APRIL 8,390 17,489 MAY 7,625 18,024 JUNE 9,397 18,198 JULY 8,281 18,334 AUGUST 8,826 17,513 SEPTEMBER 7,142 17,628 OCTOBER 9,012 19,729

64 68 60 63 46 49 58 58 65 57 56 64 63

64 66 63 63 59 57 57 58 59 59 58 59 63

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 40

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P

ersistent concerns about interest rate and trade policy shared center stage with some declining energy and technology shares and uncertainty in European politics as these factors continued to pressure global equity markets. Investor sentiment improved in the month’s final days with Fed Chairman Powell’s comments interpreted as less hawkish. U.S. stocks posted gains as a result. The C Fund and the S Fund were higher. The I Fund had a slight loss. Lower interest rates helped lift the F Fund. All of the L Funds produced positive returns.—BY SEAN MCCAFFREY, CHIEF INVESTMENT OFFICER, THRIFT SAVINGS PLAN

COUNTDOWN TO COLA

T

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 0.19 percent in October 2018. To calculate the 2020 cost-of-living adjustment (COLA), the indices of July, August and September 2019 will be averaged and compared with the 2018 third-quarter average of 246.352. The percentage increase determines the COLA. October’s index, 247.038, is up 0.28 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. October’s index is 2.71 percent higher than the December 2017 base index of 240.526.

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

OCTOBER 2018 NOVEMBER DECEMBER JANUARY 2019 FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER

CPI-W

247.038

Monthly % Change

0.19

% Change from 246.352

0.28


Donate to NARFE Programs Support Alzheimer’s Research

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

WRITE YOUR CHAPTER NUMBER ON CHECK; MAKE IT PAYABLE TO: NARFE-Alzheimer’s Research

Enclosed is my NARFE-Alzheimer’s contribution: $ Every cent that is contributed is used for research. Please circle: Mr. Mrs. Miss Ms. AND MAIL TO: Name: Alzheimer’s Association Address: 225 N. Michigan Ave., 17th Floor City: State: ZIP: Chicago, IL 60601-7633 Chapter Number: Credit Card Information: MasterCard VISA NARFE MEMBERS CONTRIBUTED FOR If you have any questions, write to: Discover AMEX ALZHEIMER’S RESEARCH: $13 Million Fund NATIONAL COMMITTEE CHAIR Card Number: Olivia Williams, 22 Garden Springs Road Expiration Date: (mm)/ (yy) Columbia, SC 29209 *Total as of October 31, 2018 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) EMAIL: oeashf3@bellsouth.net

$12,867,484.07* Alzheimer’s research.

Signature

Join the Silver CIrcle CLIP THIS CONTRIBUTION FORM AND MAIL TO: NARFE Silver Circle 606 N. Washington St. Alexandria, VA 22314

•For a contribution of $25 or more, you will receive a Silver Circle pin, and your name will be listed in narfe magazine with other contributors. •For a contribution of $1,000 or more, your name will be placed on the “Wall of Fame” at NARFE Headquarters.

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

/

Enclosed is my Silver Circle contribution: $ ID # (ID # may be found on your narfe magazine label or your NARFE membership card)

Name: Address: City: State: ZIP: Silver Circle contributions are NOT deductible for federal income tax purposes.

INSTALLMENT PLAN Wall of Fame 12-month installment plan

Give to the Scholarship and Disaster Funds

PLEASE MAIL COUPON AND CHECK TO: FEEA 1641 Prince St. Alexandria, VA 22314

/

All donations go to the NARFE General Fund to support NARFE programs and operations.

My check is enclosed

(Please make check payable to NARFE Silver Circle.)

Please charge my credit card Card type MasterCard VISA Discover AMEX Card Number: Expiration Date: (mm)/ (yy) Name: (please print)

Signature

MAKE CHECK PAYABLE TO: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund.

Date

YES!

Date

/

I would like to help with my contribution.

Scholarships are available to children, grandchildren and great-grandchildren of federal civilian retirees and current federal employees who are NARFE members. NARFE-FEEA Disaster Fund NARFE-FEEA Scholarship Fund

Amount: $ Amount: $

Name: Address: City: State: ZIP: To make credit card contributions, visit NARFE Scholarships at www.feea.org/givenarfeschol or NARFE Disaster Relief at www.feea.org/givenarferelief.

/


NARFE News

GIVE THE GIFT OF NARFE

2019 NARFE PHOTO CONTEST REVIEW

F

or your to-do list: Enter the 2019 NARFE Photo Contest. The deadline for this year’s contest is April 8. Winning entries will be used in the NARFE 20192020 Calendar and 2019 note card collection. The theme for this year’s contest is “Living in the USA.” All NARFE members may submit a photo, whether or not they’ve already had a photo appear in past calendars. Professional

photographers are not eligible. Photos must be horizontal in format and 8” x 10” or 8 ½” x 11” in size. Each member is limited to five photos. (No photos of children or pets, please.) Each entrant must put the following information on a piece of paper and tape it to the back of each photo: photo title; entrant’s name, address, chapter number (if applicable), email address and phone number. Submitted photos

Know someone who is a federal employee or retiree and is not a member of the National Active and Retired Federal Employees Association (NARFE)? Give them a one-year NARFE membership, a perfect gift that provides access to informative webinars on a variety of topics affecting federal workers, a monthly issue of NARFE Magazine, representation on Capitol Hill, Advocacy and more. This gift membership is $40 and can be purchased at www.narfe.org/gift.

will not be returned. Photos must be mailed to: NARFE Photo Contest, Attn: M. Williams, NARFE, 606 N. Washington St., Alexandria, VA. (Photos sent by email will not be accepted. No Polaroids.) Photos will be judged and winners notified by the end of June. For more information, go to www. narfe.org, log in and click on Special Programs on the left side of the members-only home page.

NEW PROJECT TO PROMOTE UNDERSTANDING OF GOVERNMENT

A

s an active or retired federal employee, you know the important roles our government and federal employees play, and have played, in our country. Unfortunately, not everyone knows what you know. Collective confidence and trust in government is waning. In October 2018, a small group of federal historians who helped create History@fedgov earlier this year (see our article in NARFE Magazine, July 2018, page 38) met in Washington, DC, to talk about how to deal with the regrettable decline in public understanding of and trust in our government. As the new History@fedgov Subcommittee on Promoting Understanding of Government, we decided to do more than just talk. 42

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We decided that a good way to help restore confidence and trust would be to develop a national publicity campaign focusing on the history of the federal government, including recent history. We know that NARFE, too, is seeking to tell more stories of the good, important work that federal workers have done and continue to do each day. But we can’t do this without your help. Jointly with NARFE, History@ fedgov invites you to share your personal stories from your careers in federal government. Also, we invite you to engage in an adventure of discovery to mine the vast collection of federal agency history pages that are linked from History@fedgov for exciting or unusual facts and remarkable federal employees, and then share

your findings with us. For more information, please go to the History@fedgov webpage (www. shfg.org/history-at-fedgov) and click on “Guidelines.” We will sift through your historical nuggets and personal stories and create messages showcasing important contributions the federal government has made to our nation. These messages can cover national concerns such as public health, scientific research, equal opportunity, environmental quality, education, labor standards, and the arts and humanities. We hope you will join us in this crucial effort to begin rebuilding Americans’ trust in their government. — BY JUDSON MACLAURY,CURATOR, HISTORY@ FEDGOV


NARFE NATIONAL LIFE MEMBERSHIP APPLICATION Life Membership Fee Schedule

National Life Membership offers a hedge against future dues increases and affirms a member’s ongoing support of NARFE’s mission to serve federal employees and retirees. National dues are paid for life; applicable chapter dues are billed annually.

CONTACT INFORMATION o Mr. o Mrs. o Miss o Ms. Full Name _____________________________________________ Street Address _________________________________________ Apt./Unit ______________________________________________ City _______________________ State _____ ZIP _____________ Phone (__________) ____________________________________ Email ________________________________________________ Date of Birth _____ /_____ /_________ dd

mm

yyyy

Recruiter ID # (if applicable) _______________________________ Chapter Number (if applicable) ____________________________ (call 800-456-8410 for chapter information) MEMBERSHIP INFORMATION Member Number: _______________________________________ (New members) Membership is open to civilians in any agency of the federal or D.C. (before Oct. 1, 1987) governments eligible for a federal annuity.

Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin. Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes.

Ages 30-39 40-50 51-55 56-60 61-65 66-70 71-75 76-80 81-90 91-100+

I am a (check all that apply)

o Active Federal Employee o Active Federal Employee Spouse

o Annuitant o Annuitant Spouse o Survivor Annuitant

Single or Quarterly Payment Installments $1,796 $450.25 1,408 353.25 1,127 283.00 960 241.25 801 201.50 653 164.50 514 129.75 392 99.25 251 64.00 127 33.00

PAYMENT INFORMATION o Single Payment or o Quarterly Installments (4 payments) Life Membership fee amount: $ _____________________ PAYMENT OPTIONS o Check or Money Order (Payable to NARFE) o Charge my: o MasterCard o VISA o Discover o American Express Card No. _________________________________________ Expiration Date _____ /_______ mm

yyyy

Name on Card _____________________________________ Signature ________________________ Date ___________ MAIL THIS APPLICATION TO NARFE Member Records 606 N. Washington St. / Alexandria, VA 22314-1914

NARFE Webinars — Answers for the Federal Community Always FREE for members in the NARFE Federal Benefits Institute

AVAILABLE NOW! Pre- and Post-Retirement Planning • What’s Your Best Retirement Date? • Steps to a Speedy Retirement • Social Security and Feds

Money Management • Estate Planning for Feds • TSP: Maximizing Your Retirement Savings • Exploring TSP Withdrawal Options

Health Benefits • Health Plans: What’s New and How to Choose • FEHB and Medicare: What’s Best for You?

And More! Not a member? Join NARFE today to access

all NARFE Federal Benefits Institute resources and events: www.NARFE.org/Join

NARFE Webinar Presenters James Marshall is a federal retirement expert and owner of Federal Retirement Planning, LLC. Tammy Flanagan, expert on federal benefits, offers easy-to-understand answers to the most complex questions. Mark Keen, CFP, is a financial planner with years of experience helping Feds prepare for retirement.

NARFE Federal Benefits Institute www.NARFE.org/Institute


FEDERATION ELECTIONS 2019 FEDERATION

DATE(S)

WEBSITE/CONTACT INFO

Arizona

March 1 to April 15, 2019

New Jersey

Feb. 1 to March 1, 2019

Ohio

Through Jan. 4, 2019

Joseph W. Cinadr, 419-589-2913 jwcina@embarqmail.com

South Carolina

Early January 2019

www.scnarfe.org Robert Shear, 803-331-9567 robertshear.narfe87@hotmail.com

South Dakota

Nominations due Feb. 1, 2019 Election: Feb. 1 to March 1, 2019

www.narfe.org/site/sd Daryl Zimmerman, 605-490-0761 tdydaryl@yahoo.com

Tennessee

March 1 to 31, 2019

narfetn.org Rhonda Mooney, 731-267-2336, rhondam@click1.net

Texas

Feb. 23 to March 22, 2019

www.narfe.org/site/TX Frances Hiner, 210-380-8743 fran.hiner@att.net

www.narfeaz.com Etta Bryant, 520-578-0848, narfeazfp@gmail.com www.narfe.org/site/nj John Szpyhulsky, 732-208-3585 ukijs@aol.com

Need to update your Federation Election information? Please email Precious Dorch-Robinson, NARFE communications assistant, at probinson@ narfe.org. Remember to provide your federation name, date(s) of your election and any website or contact information. Deadline for February issue: December 15, 2018

we know you matter

®

We can help educate you and find local resources for all leading forms of Dementia: Alzheimer's Disease; Vascular Dementia; Lewy Body Dementia; Frontotemporal Dementia; Mixed; SNAP; CTE; TBI & others.

1-800-DEMENTIA (800-336-3684) | www.DementiaSociety.org Dementia Society of America, PO Box 600, Doylestown, PA 18901 501(C)3 Nonprofit Organization | @dementiaorg #68147 44

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Member Perks

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. INSURANCE NEW

NEW

Dignity Memorial - End of Life Planning 844-502-5901 https://narfe.dignitymemorial. com Planning a funeral can be an overwhelming task for family members. The Dignity Memorial Funeral Benefit Program gives you and your family benefits and discounts to help alleviate the financial and emotional burdens of planning a funeral. Visit NARFE’s website for details or call 844-502-5901.

Neptune Society 1-800-NEPTUNE (637-8863) www.neptunesociety.com Our pre-arranged plans cover all necessary expenses for one guaranteed price even if the services are not needed for 40 or 50 years. The Neptune Society offers a $100 discount to all NARFE Employees members. Call 1-800-NEPTUNE and mention your NARFE membership or visit NARFE’s website for more details.

NEW

Nationwide 1-855-550-9216

Starr Wright 1-800-424-9801 www.wrightusa.com

For your love of discounts side. Discover how Nationwide’s suite of solutions can help protect your financial future. Protect what matters to you for less with a memberonly discount when you enroll in an auto or power sports policy. Plus, receive an additional discount when you bundle home and auto policies. Protect all sides with Nationwide’s wide range of insurance and financial solutions. Benefit from guidance and support from a company that has been strong and stable for 90 years.

Protect yourself and your career. Introducing Special Federal Employee and Contractors Professional Liability Insurance. Starr Wright USA has been defending Feds for more than 50 years offering up to $2 million of coverage including LEOSA coverage. Rates for employees are very affordable and we offer a $25 gift card with recurring annual payment and one extra month coverage. We even have contractor’s coverage too! Visit www.wrightusa.com.

MOVING SERVICES

NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed exclusively for NARFE members, plans administered by Mercer Health & Benefits Administration LLC: Group Term Life Insurance, Senior Age Whole Life Insurance, Senior Term Life Insurance, Group Hospital Income Insurance, Hospital Income and Short-Term Recovery Insurance, and Pet Insurance. 46

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Bekins Van Lines 800-456-6832 narfe@bekins.com All NARFE members will receive contracted pricing for all interstate shipments. This will apply to packing, transportation and fullvalue coverage against damages. Please mention you are a NARFE member

MiniMoves 800-300-6683 MiniMoves is America’s only national mover exclusively focused on small shipments; a piece, a room or a full condo. Member discount - $25 off 500 pounds; $50 off larger moves. Use code 1292.

Wheaton World Wide Moving 800-248-7960 narfe@wvlcorp.com At Wheaton, we know interstate relocating is much more than trucks and boxes. Moving is not simply an address change. It’s a life change. Call today and mention you are a NARFE member to start the moving process.

PRODUCTS NEW

ID Shield 571-830-5489 www.legalshield.com/info/narfe LegalShield along with Kroll will monitor more of what matters: We monitor your identity from every angle, not just your Social Security number, credit cards and bank accounts. If any change in your status occurs, you will receive an email update immediately. NARFE members receive the discounted rate of $8.95 for individuals and $18.95 for families when you sign up through the website above.


NEW

LegalShield 571-830-5489 www.legalshield.com/info/narfe

Budget Car Rental 800-218-7992 www.budget.com

Whether it’s big, small or somewhere in between, you have affordable legal help when you need it. With your legal plan, you or your family members can contact your law firm any time you need legal advice or assistance, 24/7 for covered emergencies. NARFE members receive the discounted rate of $16.95 for individuals and $18.95 for families of 10 (two adults and up to 8 children) when you sign up using the link.

Budget Car rental was founded in 1958 for the “budget-minded” renter. Today, with approximately 3,500 locations around the world, Budget is a leading rental car supplier now offering discounts to members of NARFE. Call or book your reservation now at Budget.com using the NARFE BCD number D871500.

0ffice Depot and OfficeMax 855-337-6811, extension 2897 www.officediscounts.org/narfe Office Depot and OfficeMax are one company! NARFE Members can save up to 80% on over 93,000 products. Great for your printing, cleaning and office needs. Shop online or in any Office Depot or OfficeMax store. Enjoy FREE next-day delivery on online orders over $50! Visit www.officediscounts.org/narfe to shop online or print off a FREE Store Purchasing Card or call 855.337.6811 x 2897 to place your order over the phone.

TRAVEL

Alamo 800-462-5266 www.alamo.com Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call or visit our website today and reference Contract ID 262544.

Avis Car Rental 800-633-3469 www.avis.com Avis Car Rental is one of the world’s best-known car rental brands with approximately 5,500 locations in more than 165 countries. Call or book your reservation now at Avis.com using the NARFE AWD number A701900.

Choice Hotels International 800-258-2847 www.choicehotels.com With 6,400 hotels in the United States and throughout the world, Choice Hotels offers something for everyone. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. Choice Hotels brands include: Comfort Inn, Comfort Suites, Sleep Inn, MainStay Suites and more.

National 800-CAR-RENT www.nationalcarrental.com You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation, call National Car Rental at 1-800-CAR-RENT® and reference Contract ID 5282909.

Wyndham Extra Holidays 800-428-1932 www.extraholidays.com Excellent service and the finest comforts are standards you can always rely on with

Wyndham Extra Holidays. With more spacious floor plans than a regular hotel, you can enjoy a One-, Two- or ThreeBedroom suite with separate living areas and partial or fully equipped kitchens. Please use promo code 8000002694 when calling or booking online.

WELLNESS

Brookdale Senior Living 571-483-1265 www.Brookdale.com As the largest operator of senior living communities in the U.S., Brookdale has over 1,000 locations all across the country. NARFE Members are eligible for 7.5% discounts at Brookdale Independent Living, Assisted Living and Memory Care communities and 10% discounts on Brookdale Private Duty Home Care. For new move-ins only.

HearUSA www.hearusa.com/narfe HearUSA: The Nation’s Most Trusted Name in Hearing Care. Choose from 250+ hearing aids with $0 Co-Pay for Many Plans. Wireless. Bluetooth. Smartphone Compatible. Nearly Invisible. Risk-Free 60Day Trial. Free Follow-Up Care. Free 3-Year Warranty. Call 1-855-845-2706 to see if you qualify for 2 FREE hearing aids.

Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE Life Line Screening will conduct health screenings using state-of-the-art ultrasound technology in your neighborhood. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website.

NARFE Member Perks are designed to provide NARFE members with a quality option in their search for commonly used products and services. NARFE makes no guarantee on any products and services listed and encourages its members to shop and compare before making a decision on any financial matter. Check out these additional Member Perks on the NARFE website for more details!

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

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The Way We Worked

CIRCULATING COINS In this photo from 1949, Peter J. Haggerty, the Superintendent of the San Francisco Federal Mint, sifts through more than 10 million Chinese coins that were produced for Chiang Kai-Shek, leader of the Republic of China. For two months, employees at the Federal Mint worked behind bullet-proof barricades to manufacture the foreign coins, which were made from 150 tons of silver and copper sent from China. Following the establishment of the People’s Republic of China and the closure of the Shanghai Mint, the United States supported the exiled Chinese government against Mao Zedong and the communist state. Although it no longer creates circulating coins, the United States Mint at San Francisco continues to play an important role in maintaining the nation’s coinage. Today, it mints clad and silver proof coin sets, as well as commemorative coins that are authorized by Congress. PHOTO from the Records of the U.S. Mint, 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? Congress passed the Coinage Act on April 2, 1792, and established the first national mint in the United States. Philadelphia, which at the time was the nation’s capital, was the site of the first U.S. Mint office. The Mint was the first federal building built under the Constitution, and it’s one of the federal government’s oldest agencies. This agency is responsible for producing coins that can be used to conduct trade and commerce. They also make coin-related products, including Congressional Gold Medals and silver and gold bullion coins. The Mint has branches in San Francisco, Denver and West Point as well as a bullion depository at Fort Knox. Visit www.usmint.gov.


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See up to 9 of America’s most spectacular national parks on this incredible tour! Start off in dazzling Las Vegas and continue to the world-famous Grand Canyon, Zion’s steep sandstone cliffs, rock hoodoos in Bryce Canyon, Monument Valley’s giant mesas, Arches National Park’s gravity-defying rock arches, waterfalls and granite scenery in Yosemite, towering sequoia trees in Kings Canyon, and everything in between—America’s natural beauty awaits!

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18 days, departs September 6, 2019

18 days, departs January 9 & 31, 2020

Cruise through 6 of Europe’s most popular countries and tour storied towns that once inspired the Brothers Grimm on this magnificent tour. See castles and grand cities, cathedrals and darling villages as you tour enchanting Germany and sail aboard the MSC Orchestra. You’ll also explore Omaha Beach and Memorial Museum during the included D-Day experience to commemorate the 75th anniversary year of the Allied landing.

YMT invites you on an exotic adventure through New Zealand! This 18-day cruise tour begins with sightseeing in fascinating Auckland and continues on an 11-day freestyle cruise aboard the Norwegian Jewel. Discover the island’s dramatic landscapes, beautiful beaches, and vibrant culture before continuing to Australia for a 3-night stay in spectacular Sydney, where you will enjoy a guided tour and plenty of leisure time.

Frankfurt • Hamelin • Le Havre • Lisbon • Barcelona • Marseille • Milan • and more

Auckland • Tauranga • Picton • Akaroa • Dunedin • Milford Sound • Sydney • and more

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*Prices are per person based on double occupancy plus up to 299 taxes & fees. Cruise pricing based on lowest cabin category; upgrades available. Single supplement and seasonal surcharges may apply. Add-on airfare available. Free Balcony Upgrade requires purchase of Ocean View Cabin. Onboard Credit requires purchase of Ocean View or Balcony Cabin for Alaska. Free Beverage Package or Internet requires purchase of Ocean View Cabin or Balcony Cabin (and applies to 1st and 2nd guests occupying a cabin, for the cruise portion of the tour only). Free Beverage Package or Internet requires additional service charges and is subject to NCL terms & conditions and are subject to change. For full Set Sail terms and conditions see www.ymtvacations.com/setsailoffers. Offers apply to new bookings only, made by 2/28/19. Other terms and conditions may apply. Ask your Travel Consultant for details. $


PAY NOTHING ON OVER FORTY HEARING AID MODELS. GEHA members pay as little as $0 out of pocket on over 40 hearing aid models when they use their $2,500 health plan benefit to purchase hearing aids through TruHearing®. Hearing aids come with: •

3 provider visits

45-day trial

3-year warranty

48 free batteries included

Example Savings (per pair):

ReSound LiNX 3D™ 5

Widex Beyond 220

Phonak Audeo® B50-R

TruHearing Price: Your Benefit:

TruHearing Price: Your Benefit:

TruHearing Price: Your Benefit:

Smartphone compatible

*

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$2,500 - $2,500

$0

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*

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$2,500 - $2,500

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You Pay:

$2,790 - $2,500

$290†

70 additional models available for under $500 after applying your benefit.

$2,500 benefit available to High and Standard Option health plan members. Call TruHearing to schedule an appointment: 1.866.796.2438 For more info, visit geha.com/MyHearingAids

*Smartphone-compatible aids connect to iPhone®, iPad®, and iPod® Touch devices. Connectivity also available to many Android® phones with use of a phone clip accessory.

All content ©2018 TruHearing, Inc. All rights reserved. TruHearing® is a registered trademark of TruHearing, Inc. All other trademarks, product names, and company names are property of their respective owners. Actual customer savings will vary. Prices and products subject to change. Three followup visits must be used within one year after the date of initial purchase. Free battery offer is not applicable to the purchase of rechargeable hearing aid models. Hearing aid returns, repairs, and replacements are subject to provider and manufacturer fees. For questions regarding fees, contact TruHearing customer service.


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