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COVER STORY
RETHINKING RETIREMENT
Volume 96 • Number 1
Automation: Assembling the Future
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WASHINGTON WATCH
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NARFE Welcomes New OPM Director With Personal Visit
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Senate Subcommittee Looks to Eliminate “Zombie Programs”
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Advocacy Is Everyone’s Responsibility
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OPM to Eliminate Some Occupational Job Series
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Remembering Elijah Cummings
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MSPB Recommends Agencies and Congress Boost Hiring Efforts
COVER STORY
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Bill Tracker
RETHINKING RETIREMENT New perspectives on work, aging and retirement are shattering the “golden years” stereotype.
COLUMNS
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From the President
22 Benefits Brief 40 Managing Money DEPARTMENTS
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AUTOMATION: ASSEMBLING THE FUTURE Just as computers helped improve administrative efficiency in generations past, now bots, artificial intelligence and selfdriving automobiles are changing how we work.
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Questions & Answers
42 For the Record 44 NARFE News
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46 Member Perks
On the Web
48 The Way We Worked
COVER STORY
VISIT US ONLINE AT:
RETHINKING RETIREMENT
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Volume 96 • Number 1
Automation: Assembling the Future
ON THE C OVER Illustration by GRAPHEK
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JANUARY 2020 | Volume 96 | Number 1
EDITORIAL DIRECTOR Helen Mosher SENIOR EDITOR Mabel Yu COMMUNICATIONS ASSISTANT Precious Dorch-Robinson GRAPHIC DESIGN GRAPHEK Beth Bedard EDITORIAL BOARD Kenneth J. Thomas, Kathryn E. Hensley, Barbara Sido CONTACT US NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Editorial: communications@narfe.org Advertising Sales: Anita Nelson advertising@narfe.org
NARFE FOR THE VISUALLY IMPAIRED ON THE TELEPHONE: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-504-7300 or go to www.nfbnewsline.org. ON DIGITAL AUDIO: Issues of NARFE Magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider. The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.
NATIONAL OFFICERS KENNETH J. THOMAS President; natpres@narfe.org KATHRYN E. HENSLEY Secretary/Treasurer; natsectreas@narfe.org EXECUTIVE DIRECTOR BARBARA SIDO, execdir@narfe.org
REGIONAL VICE PRESIDENTS
REGION I James C. Risner (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) TEL: 207-540-6233 EMAIL: rvp1@narfe.org REGION II Kathy Adams (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) TEL: 302-697-6650. CELL: 302-561-5660 EMAIL: adamskhawaii@aol.com REGION III Clarence Robinson (Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 EMAIL: crobin8145@att.net
REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: pappysdad@cobridge.tv REGION VII Rodney L. Adelman (Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: narfe7vp@cox.net REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) TEL: 707-644-7565 EMAIL: hlzajac125@gmail.com
REGION IV Robert L. Helfrich (Illinois, Indiana, Michigan, Ohio and Wisconsin) TEL: 317-501-1700 EMAIL: rvp4@narfe.org
REGION IX Richard Wilson (Alaska, Idaho, Montana, Oregon and Washington) TEL: 253-210-5609, CELL: 425-736-6899 EMAIL: narfe1404@comcast.net
REGION V Cindy Reneé Blythe (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) TEL: 785-256-1450 EMAIL: mrsdocbusyb@yahoo.com
REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) TEL: 703-830-6590, CELL: 703-201-6304 EMAIL: rvp10@narfe.org
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 “My Account”
TO REACH A FEDERAL BENEFITS SPECIALIST:
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narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $40. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2019, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in NARFE Magazine, but at the same time we will not undertake to guarantee the reliability of our advertisers.
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SAVE THE DATE! NARFE’S PREMIER NATIONAL CONFERENCE
August 30-September 1, 2020
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Get ready for a lively two and a half days of thought-provoking speakers, leadership training, intensive education on federal benefits and financial planning, and opportunities to connect with fellow NARFE members and federal colleagues.
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NARFE.org
From the President
CORRECTING NEGATIVE NARRATIVES
G
overnment employees have long dealt with a negative public image. All too frequently, virulent attacks
and disdain directed at the federal workforce play out in the real-life scenarios of millions of people. Critics call them lazy or argue that they make too much money. The individuals who keep this country running effectively and securely are constantly slandered by misinformation campaigns circulating in the public, segments of the media and even some members of Congress. Words erode the self-esteem and deplete the morale of the Feds on whom Americans depend to ensure their medication, food and flights are safe; social security checks are processed; and civil rights are upheld. Hardworking and humble professionals, public servants often choose their career path out of a sense of pride and a desire to contribute to the greater good. We don’t often see the government employees who help underprivileged students access
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.
funding for college, or those who enforce fair housing regulations so that financial institutions don’t employ discriminatory lending practices. Rarely do we witness scientists researching and developing cleaner air standards, transportation engineers designing safer bridges or cybersecurity professionals protecting our energy infrastructure. Like most Americans, many government employees live paycheck to paycheck. But unless there’s a government shutdown, work stoppage or strike, society doesn’t have to face the unpleasant reality that the government employees who help us sometimes cannot help themselves. During the 35-day partial government shutdown in 2018-19, many stories emerged about local communities and businesses rallying to support government employees who were furloughed or working without pay. What seemed like a turning of the tide in how the general public perceived government employees was short-lived. Once the shutdown ended, so too did the public’s interest in the toll it took on government employees and their families. It’s incumbent upon us to correct the inaccuracies and change the negative narrative. As a starting point, we should all show our appreciation for government employees. A simple thank you and acknowledgment of their work goes a long way for the people who are your neighbors, attend your church and provide for their families—just like the rest of us. To all government employees, thank you for your service.
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
NARFE WELCOMES NEW OPM DIRECTOR WITH PERSONAL VISIT
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ARFE President Ken Thomas, along with NARFE Staff Vice President for Policy and Programs Jessica Klement and NARFE Legislative Counsel Alan Lopatin,
met with new Office of Personnel Management (OPM) Director Dale Cabaniss in October to discuss a wide array of matters confronting the new leader of the nation’s 136-year-old human resources office for active and retired federal employees. Director Cabaniss was nominated for the position on March 4, 2019, and confirmed by the Senate on September 11, 2019.
President Thomas engaged Cabaniss on a range of issues, including delays in retirement processing, where the two shared their common experience (one familiar to many who retire from federal service) of having to wait six months or longer for the final adjudication of their retirement annuity and then encounter a delay in the receipt of a first payment. The director spoke about her goals of improving customer service and being responsive to federal civil servants throughout their employment life cycle from the first day on the job through retirement. NARFE pledged to work with the director to 6
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accomplish these aspirations and better serve the federal community. Cabaniss brings a unique perspective to the job, having served as Republican staff
ACTION ALERT!
director for the Senate Appropriations subcommittee with jurisdiction over the funding and oversight of the agency she now leads, as well as starting her career as counsel to the Senate Committee on Governmental Affairs. Cabaniss also served as chair of the Federal Labor Relations Authority (FLRA). The director suggested that her experience in the civil service arena on Capitol Hill and in the executive branch would serve her well as OPM director, helping her be sensitive to the needs of rank-and-file employees as well as managers in promoting
JANUARY
NARFE Urges a Bipartisan WEP Reform Solution We need your help! NARFE is calling on Congress to produce a bipartisan solution that builds on the strengths of two competing Windfall Elimination Provision (WEP) reform bills. Contact your representative today and urge him or her to work toward legislation that would bring relief to the 1.8 million retirees shortchanged each month by the WEP. Visit NARFE’s Legislative Action Center on the NARFE website to send a prewritten letter on this issue, or, for an even greater impact, a personalized message to your legislator.
effective and efficient government services. Cabaniss told NARFE that it was particularly important to her that federal civil servants understand the flexibilities and benefits available to them during their federal employment and in retirement. As a re-employed annuitant herself, she said, much of what she brings to the table is based on her personal experience. As NARFE members are aware, OPM and the functions of the federal personnel agency (dating back to 1883 and the establishment of its predecessor,
the Civil Service Commission) have been the subject of a White House-initiated management reform proposal that would transfer many of OPM’s core functions to other agencies, principally the General Services Administration (GSA), and move federal civil service hiring and employment policy functions under the Executive Office of the President. President Thomas and Director Cabaniss agreed to work together to find areas in which NARFE might best assist
SENATE SUBCOMMITTEE LOOKS TO ELIMINATE “ZOMBIE PROGRAMS”
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n October, the Senate Homeland Security and Governmental Affairs Subcommittee on Federal Spending Oversight and Emergency Management held a hearing to address spending on unauthorized federal programs. These programs, referred to by Subcommittee Chairman Rand Paul, R-KY, as “zombie programs,” receive funding from Congress but have not been authorized or reviewed, often in decades, leading to a dangerous lack of oversight and potentially wasteful spending. In the first witness panel, Rep. Cathy McMorris Rodgers, R-WA, highlighted her bill, the Unauthorized Spending Accountability Act, H.R. 2505. The legislation would phase out programs that go three years without congressional
authorization, gradually reducing their funding by 10 percent the first year and 15 percent the second, before eliminating them entirely the third year. More than 1,000 unauthorized federal programs, which make up 23 percent of the discretionary budget, are funded through annual discretionary spending bills, including important programs like the Federal Elections Commission, which was last authorized in the 1980s. To ensure Congress fulfills its responsibility, the bill would establish the Spending Accountability Commission (SAC), which would create an authorization schedule for all discretionary programs, conduct reviews of all mandatory spending programs, and be required to submit a sequester
OPM in carrying out its critical mission of recruiting, retaining and advancing a vibrant civil service. The two also look to motivate young professionals to seek careers with the federal government. Cabaniss committed to working with NARFE to get the word out on matters of importance to the constituency both of our organizations serve and to solicit input from NARFE and its members as the process of improving government continues. — BY ALAN LOPATIN, LEGISLATIVE COUNSEL
MYTH vs. REALITY Myth: The number of federal employees eligible to retire is expected to decrease in the coming years. Reality: Per the Office of Personnel Management, nearly 14 percent of federal employees were eligible to retire in 2018. That number is expected to increase to nearly 30 percent by 2023.
and “sunset” schedule for any unauthorized programs to Congress, among other responsibilities. Witnesses on the second panel argued that authorization should always be the first (Continued on p.8) W W W. N A R F E . O R G
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Washington Watch
ADVOCACY IS EVERYONE’S RESPONSIBILITY
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o win an election, a politician must first win us— the people they are seeking to represent—over. He or she must understand our diverse needs and identify the right economic and social opportunities in the community that will improve lives. Likewise, as constituents and voters, it is our responsibility to be informed about and evaluate a politician’s policies before we elect him or her to work on our behalf to propose, support and create laws that govern the land. Getting to know the politician might be challenging, but when we cohesively advocate as a community, we improve our chances of not only making the right candidate choice, but also ensuring that our voices are heard. These relationships also exist between organizations like NARFE and the people it represents. As a federal worker or retiree, you’ve turned to NARFE for access to federal benefits experts and resources that help you plan your retirement. And because of constant threats to your earned financial and health benefits, you understand how advantageous it is to have NARFE’s advocacy team
defending your interests before Congress. NARFE turns to you, too. You have firsthand experience with the impact of policies that threaten or diminish your earned benefits. Your personal story resonates with legislators when it is combined with data points; it puts a human face on the issues and helps politicians connect with voters. Recently, I participated in a NARFE Congressional District and Senatorial Leader (CDL and SL) meeting. CDLs and SLs are NARFE member advocates who volunteer to lead advocacy efforts in their congressional districts and states. They proudly serve as liaisons to their legislator’s office, NARFE Headquarters and state federations; additionally, they mobilize the federal community locally to engage in grassroots advocacy activities. During the meeting, the CDLs and SLs shared reports about their advocacy activities, including in-person meetings with legislators. These reports are crucial to guiding NARFE through effective follow-up strategies that will continue the conversations that began in the states. CDLs and
(Continued from p. 7) step in the appropriations process, yet Congress shirks the responsibility and, instead, continues to appropriate funds to unauthorized programs. One witness noted that there are 130 expiring authorizations in 2019 and that Congress needs more incentives and resources to get the job done. Another asserted that partisanship drives
the issue, and compromise is necessary for proper oversight. Chairman Paul and Ranking Member Margaret Hassan, D-NH, expressed they would work across the aisle to find a solution. Hassan, however, cautioned that phasing out programs could destabilize important functions, including medical services for veterans.
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— BY SETH ICKES, GRASSROOTS ASSISTANT
SLs, as well as the thousands of NARFE members they mobilize each year, recognize that while headquarters and state federations are working tirelessly to protect their interests, we cannot be successful without the voices of constituents. NARFE has a robust and diverse membership spread across the country, which gives us an incredible opportunity to educate every member of Congress about issues affecting the federal community. Visit NARFE’s advocacy webpage to access our legislative priorities and ongoing advocacy campaigns. Contact us at advocacy@narfe.org if you have any questions or are interested in getting more involved. — BY MARSHA PADILLA-GOAD, GRASSROOTS PROGRAM MANAGER
NARFE GRASSROOTS ADVOCACY Learn more about how you can take action to protect your earned pay and benefits by reviewing NARFE Grassroots materials at www.bitly.com/ NARFE-grassroots.
OPM TO ELIMINATE SOME OCCUPATIONAL JOB SERIES
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he Office of Personnel and Management (OPM) is targeting nearly 50 occupational codes for federal jobs to be eliminated. In an October 24 memo to human resources directors, Deputy Director for Talent Acquisition and Workforce Shaping Kimberly Holden identified 28 white-collar and 19 trade classifications under consideration for elimination. Included in the list of whitecollar jobs are positions such as autopsy assistant, medical technical assistant and language clerical. Among the positions in the trade and labor series are chemical equipment repairing and chemical plant operating.
The occupations selected for elimination are jobs that are considered non-agency specific or non-agency mission work; these jobs currently have 25 or fewer employees within the series and can be reclassified into other existing similar occupational groups. Holden says OPM’s plan aligns with President Trump’s 21st Century IDEA Act—an effort to modernize the government and address critical challenges in government services. OPM routinely reviews occupational series throughout the federal government to determine federal agency usage of occupational codes and to compare them with industry trends. Occupational
classifications for civil service workers were established by the Classification Act of 1949. The law grants OPM statutory responsibility for providing uniformed job classification and grading standards for agencies. This standard procedure ensures, among other things, equal pay for equal work, and it promotes uniformity and equity throughout the civil service sector. OPM solicited comments on the proposal. The agency sought suggestions for additional occupations to be reclassified and objections to classifications on the proposed list. NARFE will provide updates on this as necessary. — BY MARSHA PADILLA-GOAD, GRASSROOTS PROGRAM MANAGER
REMEMBERING CHAIRMAN ELIJAH CUMMINGS, A PROUD SUPPORTER OF THE FEDERAL COMMUNITY Representative Elijah E. Cummings, D-MD, Chairman of the House Committee on Oversight and Reform, passed away on October 17, 2019. A Baltimore native, he was a thunderous advocate in Congress and a Maryland institution in his own right. Cummings was a veteran congressman, serving nearly 24 years as the representative of Maryland’s seventh congressional district. Prior to his congressional tenure, he was a Maryland delegate for 13 years. A true diplomat and statesman, Cummings worked across the aisle to find bipartisan solutions and showed compassion for not only his constituents, but for all Americans. He was a staunch supporter of the federal community, demonstrating leadership on the TSP Modernization Act and the future of the U.S. Postal Service, and protecting and improving federal pay and benefits. NARFE President Ken Thomas reflected that with Cummings’ passing, “the federal community lost a beacon of light that shined bright on policies and issues affecting millions of federal employees and retirees.” He added that the Chairman’s “compassion for society’s underserved, courage in the fight for civil rights, and powerful presence in the halls of Congress will be greatly missed.” NARFE extends condolences to Cummings’ family, friends, staff, House and Senate colleagues, constituents, and the entire federal community, including NARFE’s Maryland federation, whose numerous experiences with him offered a firsthand look at advocacy and policymaking that truly benefited the good of all.
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Washington Watch
MSPB RECOMMENDS AGENCIES AND CONGRESS BOOST HIRING EFFORTS
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recent memorandum from the U.S. Merit Systems Protection Board’s (MSPB) Office of Policy and Evaluation to federal chief human capital officers stressed the need to improve federal hiring efforts. MSPB calls on agencies and Congress to build on current Office of Personnel and Management (OPM) recommendations that aim to improve applicant qualification evaluation and the overall hiring experience. These recommendations add to an already long list put forth by other federal entities that seek to advance recruitment and retention efforts. MSPB outlines four steps agencies can take to further improve recruitment across the federal government. The board recommends Congress and agencies go beyond the “faster and cheaper” hiring process by improving areas key to ensuring the most qualified applicants are driven to open positions. These steps include getting experts more involved in the application process, better identification, description and measurement of job qualifications, and improving applicant assessment programs across the government. MSPB asserts that agencies should increase the presence of subject matter experts (SMEs) in the hiring process. Because they know what is required to perform the job functions most effectively, SMEs would help select the best candidates based on the qualifications necessary for the job. The
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experts would also improve the position announcement process, aiding HR staff in best defining minimum job qualifications, writing job descriptions and reviewing candidate applications. Currently, federal job announcements focus more on minimum qualifications based on “time-in-grade” experience rather than the skill sets actually needed to perform the responsibilities and duties of the position. MSPB says the lack of detail in job announcements has two major drawbacks: many applicants are unqualified, and qualified candidates don’t apply. Updating and improving announcements so that they properly describe the position and the necessary qualifications would go a long way toward ensuring that the jobs end up in the most capable hands. All federal agencies use some form of assessment program in their hiring process; however, the assessments are not always consistent in accessibility, content or quality. Agencies are not completely in the dark about developing assessments; OPM’s HR Solutions provides standardized hiring assessments for more than 100 federal occupations—provided the agency can afford the hefty fee for the service. The MSPB memo argues that assessments must become standardized, affordable and accessible to improve the recruitment process. MSPB contends that Congress needs to increase funding to help improve assessment programs, rather than continue to place all
LEGISLATIVE RESOURCES • NARFE NewsLine: A weekly newsletter that goes out to NARFE members on Tuesdays and includes weekly recaps of legislative news, compiled by NARFE’s advocacy and communications teams. • Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.
the responsibility and expense on agencies and OPM. Increased appropriations would allow agencies to adopt the programs at little to no cost, significantly increasing the assessments’ accessibility and efficient use across the government. MSPB stated that several agencies noted support from OPM would enhance their hiring efforts and provide significant cost savings over time as better applicants were hired. MSPB stressed that improving applicant assessment programs would not require any changes to current regulations or laws; instead, increased congressional funding would be the key to making the improvements. — BY SETH ICKES, GRASSROOTS ASSISTANT
narfe bill tracker THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO THE CONGRESSIONAL LEGISLATION THAT NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE
BILL NUMBER / NAME / SPONSOR H.Res. 23: Rep. Susan Davis, D-CA Cosponsors: 206 (D) 51 (R)
H.Res. 33/S.Res. 99 Rep. Stephen Lynch, D-MA / Sen. Gary Peters, D-MI Cosponsors: H.Res. 33: 225 (D) 41 (R) S.Res. 99: 43 (D) 8 (R) 2 (I)
H.Res. 54: Rep. Gerald Connolly, D-VA Cosponsors: 217 (D) 73 (R) POSTAL REFORM
H.Res. 60: Rep. David McKinley, R-WV Cosponsors: 178 (D) 25 (R)
H.R. 2382: USPS Fairness Act / Rep. Peter DeFazio, D-OR
WHAT BILL WOULD DO
LATEST ACTION(S)
Expresses the sense of the Referred to the House House that the United States Committee on OverPostal Service should take all sight and Reform appropriate measures to ensure the continuation of door delivery for all business and residential customers.
Expresses the sense of the House that Congress should take all appropriate measures to ensure that the United States Postal Service remains an independent establishment of the federal government and is not subject to privatization.
Referred to the House Committee on Oversight and Reform (H.Res. 33)
Expresses the sense of the House that the United States Postal Service should take all appropriate measures to ensure the continuation of its six-day mail delivery service.
Referred to the House Committee on Oversight and Reform
Expresses the sense of the House that the United States Postal Service should take all appropriate measures to restore service standards in effect as of July 1, 2012.
Referred to the House Committee on Oversight and Reform
Repeals the USPS’ prefunding requirement.
Referred to the House Committee on Oversight and Reform
Referred to the Senate Committee on Homeland Security and Governmental Affairs (S.Res. 99)
Cosponsors: 231 (D) 58 (R)
NARFE’s Position:
Support
Oppose
No position
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Washington Watch
narfe bill tracker THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO THE CONGRESSIONAL LEGISLATION THAT NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE
BILL NUMBER / NAME / SPONSOR H.R. 141/S. 521 Social Security Fairness Act of 2019 / Rep. Rodney Davis, R-IL / Sen. Sherrod Brown, D-OH
GPO/WEP
Referred to the House Committee on Ways and Means (H.R. 141)
Reforms the Windfall Elimination Provision (WEP), to provide WEP-affected individuals who are eligible for benefits before 2022 a $100 monthly rebate and $50 for an affected spouse. Changes the WEP calculation moving forward.
Referred to the House Committee on Ways and Means
H.R. 4540 Public Servants Reforms the Windfall EliminaProtection and Fairness Act tion Provision (WEP), to provide / Rep. Richard Neal, D-MA WEP-affected individuals who are eligible for benefits before 2022 a $150 monthly rebate. Changes the WEP calculation Cosponsors: moving forward. 56 (D) 2 (R)
Referred to the House Committee on Ways and Means
H.R. 1254: The Equal COLA Act / Rep. Gerry Connolly, D-VA
Provides Federal Employees Retirement System (FERS) retirees with the same annual cost-of-living adjustment (COLA) as Civil Service Retirement System (CSRS) retirees.
Referred to the House Committee on Oversight and Reform
Requires Social Security and federal retirement programs to use the Consumer Price Index for the Elderly (CPI-E) to calculate cost-of-living adjustments (COLAs) to retirement benefits.
Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Reform, and Armed Services
Allows federal employees who started their careers in temporary positions before transitioning into permanent roles to retroactively contribute toward their retirement for the years they held a temporary position.
Referred to the House Committee on Oversight and Reform
Cosponsors: H.R. 141: 170 (D) 54 (R) S. 521: 29 (D) 4 (R) 2 (I) H.R. 3934 The Equal Treatment of Public Servants Act of 2019 / Rep. Kevin Brady, R-TX
Cosponsors: 14 (D) 2 (R)
H.R. 1553: Fair COLA for Seniors Act of 2019 / Rep. John Garamendi, D-CA Cosponsors: 33 (D) 2 (R)
H.R. 2478: The Federal Retirement Fairness Act / Rep. Derek Kilmer, D-WA Cosponsors: 36 (D) 12 (R)
DC STATEHOOD
LATEST ACTION(S)
Repeals both the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).
Cosponsors: 3 (D) 40 (R)
FEDERAL ANNUITIES
WHAT BILL WOULD DO
H.R. 51: Washington, D.C. Admission Act / Del. Eleanor Holmes Norton, D-DC
Referred to the Senate Committee on Finance (S. 521)
Provides for the admission of the Referred to the House State of Washington, D.C. into Committees on Overthe Union. sight and Reform, and Rules
Cosponsors: 223 (D) 0 (R) NARFE’s Position: 12
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Support
Oppose
No position
EDITOR’S NOTE: These bills are all listed online at www.narfe.org/legislation/votervoice.cfm.
ISSUE
BILL NUMBER / NAME / SPONSOR
WHAT BILL WOULD DO
H.R. 1073/S. 426: Federal Provides a 3.6 percent federal Adjustment of Income employee pay raise in calendar Rates (FAIR) Act / Rep. year 2020. Gerry Connolly, D-VA / Sen. Brian Schatz, D-HI Cosponsors: H.R. 1073: 48 (D) 0 (R) S. 426: 13 (D) 0 (R) FEDERAL COMPENSATION
H.R. 1534/S. 1174: Federal Employee Paid Leave Act of 2019 / Rep. Carolyn Maloney, D-NY / Sen. Brian Schatz, D-HI Cosponsors: H.R. 1534: 45 (D) 2 (R) S. 1174: 4 (D) 0 (R)
Provides federal employees with 12 weeks of paid leave in connection with the birth, adoption, or foster placement of a child and other medical conditions.
LATEST ACTION(S) Referred to the House Committee on Oversight and Reform (H.R. 1073) Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 426) Referred to the House Committees on Oversight and Reform, and Administration (H.R. 1534) Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 1174)
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* The Service Benefit Plan will pay a hearing aid benefit for Standard and Basic options 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. FEP Blue Focus does not have a hearing aid benefit. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in the Blue Cross and Blue Shield Service Benefit Plan 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 the Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefit first before accessing the savings of the Blue365® Discount Program. 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 Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time. † 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
Example Savings (per pair) Prices and products subject to change. For more information, visit TruHearing.com. Sample Product
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Phonak® Audéo® B-R 50
$4,380
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Oticon Opn® 3
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$2,790
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Call TruHearing today and start saving 1-877-360-2432 | For TTY, dial 711 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. 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. ‡ Smartphone compatible hearing aids connect directly to iPhone®, iPad®, and iPod® Touch devices. Connectivity also available to many Android® phones with use of an accessory. All content ©2019 TruHearing, Inc. All Rights Reserved. TruHearing® is a registered trademark of TruHearing, Inc. All other trademarks, product names, and company names are the property of their respective owners. Listed benefit amount may differ from customer's actual benefit. Actual customer payment will vary. Three follow-up visits must be used within one year after the date of initial purchase. Hearing aid repairs, and replacements subject to provider and manufacturer fees. For questions regarding fees, contact TruHearing customer service. FEP_NARFE_AD_1118
TruHearing is an independent company that provides discounts on hearing aids.
Questions & Answers
The following Questions & Answers were compiled by NARFE’s Federal Benefits Institute staff. NARFE does not provide legal, financial planning or tax advice or assistance.
EMPLOYEES EARLY RETIREMENT AND FERS SUPPLEMENT
Q
I work for the United States Postal Service (USPS). When I reach 30 years of creditable service, I will be 54 years old. Should USPS offer me an early retirement at that point, and I accept, would I be eligible to receive the special retirement supplement when I reach my minimum retirement age (MRA) (in my case, 56 years and 10 months) under the Federal Employees Retirement System (FERS)?
A
Yes. Since the FERS age and service requirements to qualify for an early retirement under the Voluntary Early Retirement Authority (VERA) or the Discontinued Service Retirement (DSR) is either age 50 with 20 years of creditable service or any age with 25 years of creditable service, you would qualify for either one if your agency offers you the voluntary option or if your agency attempted to involuntarily separate you (not for cause). As you pointed out in your question, non-special category employees who apply for early retirement must wait until they 16
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reach their FERS MRA before the FERS retirement annuity supplement (RAS) becomes payable with the regular monthly annuity—and it will be subject to an annual earnings test at that time. For more details about the FERS RAS, including the earnings test, please refer to the following weblink: www. opm.gov/retirement-services/ fers-information/types-ofretirement/#url=AnnuitySupplement. Additional details for both special category and nonspecial category employees can also be found in Chapter 51 of the FERS Handbook: www.
opm.gov/retirement-services/ publications-forms/csrsfershandbook/c051.pdf.
MEDICARE SPECIAL ENROLLMENT FORMS
Q
I signed up for Medicare Part A when I was 65, but I opted out of Medicare Part B because I was (and am) covered by my employment Federal Employees Health Benefits (FEHB) plan. My spouse is also under my employment FEHB plan, so he did the same thing. My spouse and I both plan on signing up for Medicare Part B during the special eight-month enrollment period that begins when I retire from federal service later this year. What forms should we be aware of?
A
Since Medicare coverage is individual coverage and since both of you
have Medicare Part A, note that the following forms need to be filled out individually. Detailed instructions are included with each form. CMS-40B Application for Enrollment in Medicare— Part B. This is the main application for obtaining Medicare Part B coverage during your Special Enrollment Period (SEP): www.cms.gov/Medicare/ CMS-Forms/CMS-Forms/CMSForms-Items/CMS017339.html. CMS-L564 Request for Employment Information. Before separating from federal service, it’s a good idea to ask your agency human resources or benefits office to assist you with completing this form. An ideal time for this is when you are submitting your retirement application. Since your spouse is covered under your employment FEHB plan, ask your agency to complete this form for him as well. Remember, these are separate forms that you will include with your individual applications for Medicare Part B. This form is evidence that you have been covered by employment health insurance since the age of 65: www.cms. gov/Medicare/CMS-Forms/ CMS-Forms/CMS-Forms-Items/ CMS009718.html. SSA-44 Medicare Income-Related Monthly Adjustment Amount LifeChanging Event. Medicare Part B premiums are based on your modified adjusted gross income (MAGI) from your tax return two years prior. For example, the
2020 premium will be based on your tax return from 2018. Some enrollees with higher income may have to pay an additional incomerelated monthly adjustment amount (IRMAA). Since you are retiring, it’s very possible that you may be transitioning to living with less income than what you were earning two years ago. If your Medicare Part B premium is subject to an IRMAA, retirement is one of the eight life-changing events that allow you to ask Medicare to reduce your IRMAA. Use this form for that purpose, if applicable: www.ssa.gov/forms/ ssa-44-ext.pdf. If you aren’t subject to an IRMAA, this form isn’t necessary.
WAIVER OF FIVE-YEAR TEST FOR FEHB
Q
I’ve been covered by my spouse’s private company health insurance plan for years, but last Open Season I signed up for FEHB coverage. I’m already eligible to retire, but it’s my understanding that I need to show that I’ve been covered by FEHB for the last five years of my federal career to be allowed to keep it in retirement. Can this requirement be waived?
A
The Office of Personnel and Management (OPM) has the authority to waive the five-year participation requirement when it is against equity and good conscience not to allow an individual to participate in the health insurance program as a retiree.
However, the law says that a person’s failure to meet the fiveyear requirement must be due to exceptional circumstances. When someone is retiring voluntarily, a waiver may not be appropriate because he or she can continue working until the requirement is met. If circumstances under these conditions otherwise warrant a waiver, the employee can write to OPM asking for such a waiver, and, if approved, OPM will notify the individual’s employer. Keep in mind that if you are offered an early retirement or qualify for a disability retirement, this five-year rule is usually waived automatically. More details can be found on the following webpage: www. opm.gov/healthcare-insurance/ healthcare/reference-materials/ reference/annuitants-andcompensationers/.
RETIREES FEGLI VERIFICATION
Q
How can a surviving family (or funeral home director) obtain verification of Federal Employees’ Group Life Insurance (FEGLI) coverage for a deceased annuitant?
A
The family (or funeral home director) can fax the request to OPM’s Freedom of Information fax number at 724-794-1112. Once the initial request is made, OPM’s W W W. N A R F E . O R G
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Questions & Answers
2020 MEDICARE PART B PREMIUMS In 2020, the total cost of the monthly Medicare Part B premium is increasing from $542 in 2019 to just over $578. This is slightly more than a 6 percent increase, while most Social Security recipients and federal retirees are receiving a 1.6 percent increase in benefits. Since most enrollees with Medicare Part B pay the standard premium, which represents 25 percent of the total premium, many enrollees will see their monthly Part B premium increase from $135.50 to $144.60. A smaller percentage of enrollees with higher income will also see an increase to their monthly Medicare Part B premiums, as they pay more than 25 percent of the total premium due to an income-related monthly adjustment amount (IRMAA). The following chart reflects the 2020 monthly rates for Medicare Part B, based on your modified adjusted gross income (MAGI) reported to the IRS on your 2018 tax return:
For what you pay in 2020, if your MAGI in 2018 was: Individual tax return
Joint tax return
Married and separate tax return
Your 2020 monthly premium (% of total premium)
$87,000 or less
$174,000 or less
$87,000 or less
$144.60 (25%)
above $87,000 up to $109,000
above $174,000 up to $218,000
Not applicable
$202.40 (35%)
above $109,000 up to $136,000
above $218,000 up to $272,000
above $136,000 up to $163,000
above $272,000 up to $326,000
Not applicable
above $163,000 and less than $500,000
above $326,000 and less than $750,000
above $87,000 and less than $413,000
$462.70 (80%)
$500,000 and above
$750,000 and above
$413,000 and above
$491.60 (85%)
Not applicable
$289.20 (50%) $376.00 (65%)
NOTE: All premiums listed in this article are per person per month. Generally, your MAGI is the total of your household’s adjusted gross income plus any tax-exempt interest income you may have. The items that contribute to your MAGI include any money earned through wages, pensions, dividends, capital gains, Social Security benefits and distributions from tax-deferred retirement plans, such as traditional IRAs and the Thrift Savings Plan (TSP). Distributions from Roth IRAs and Roth 401(k)s, life insurance, reverse mortgages and health savings accounts do not factor into the MAGI calculation. Some Medicare enrollees who have their Medicare Part B premiums withheld from their Social Security benefit have been previously “held harmless� and may have been paying less than the standard $135.50 per month premium in 2019. Since Social Security benefits increased with a 1.6 percent cost-of-living adjustment (COLA) in 2020, those who were held harmless can expect their 2020 Medicare Part B premium to increase as well. In some cases, the small increase to any applicable Social Security benefit will be partially or fully absorbed by the increase to their Medicare Part B premium. For more details, visit www.medicare.gov/your-medicare-costs/part-b-costs.
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Retirement Information Office will respond and provide further instructions and the necessary forms to claim such information. The two forms that OPM will provide are the FOIA Request Form and the FOIA Release Form. They are not available online.
LIVING WITHOUT MEDICARE PART B
Q
Although I’m signing up for the premium-free Medicare Part A upon reaching my 65th birthday this year, my sixfigure annual retirement income would cause me to have to pay over $350 per month for Medicare Part B. Part B might save me some money in out-of-pocket expenses later in life, but I have enough income that I believe I can afford them. What are other reasons why some people opt out of Medicare Part B, and what considerations should be made for living without Medicare Part B?
A
Having Medicare Part B as primary coverage to FEHB in retirement benefits most federal retirees in the long run—especially considering the retiree only pays 25 percent of the total cost of Medicare Part B if the retiree maintains an FEHB plan that waives most of their co-pays and deductibles, and if that plan provides a reimbursement to help offset the cost of their Medicare Part B premiums. However, there are exceptions that explain why some retirees opt out of Medicare Part B when eligible. One reason is the one you mentioned—higher Medicare Part B premiums for individuals with higher income. Since your modified adjusted gross income (MAGI) in retirement is high, your Medicare Part B premium is subject to an IRMAA.
To determine the long-term value of having Medicare Part B, you can use an online tool like the Consumers’ Checkbook Guide to Health Plans for Federal Employees to compare your average out-of-pocket expenses both with and without Medicare Part B for the years you expect to live. Enter code “20NARFE” for a 20 percent discount if you choose to use this website’s comparison tools: www.checkbook.org/ newhig2/hig.cfm. Some retirees opt out of Medicare Part B because they intend to live abroad and never return to the United States for medical care. Medicare doesn’t provide coverage to those living overseas. Another group of individuals who may opt out are those in certain Health Maintenance Organization (HMO) plans, especially if the retiree never intends to go out of their HMO network for medical services. If you decide not to enroll in Medicare Part B, be sure to read Section 9 of your FEHB plan brochure to fully understand how your FEHB coverage will work and how your out-of-pocket expenses are affected when you don’t have Medicare Part B. Call a customer service representative from your FEHB plan to explain anything in the brochure that isn’t perfectly clear. For example, most brochures include the following statement when discussing their catastrophic out-of-pocket expense protection: “Certain types of expenses do not accumulate to the maximum.” They should provide you with examples regarding such a statement. If you decide not to enroll in Medicare Part B and you live in the United States, do your best to obtain medical services from hospitals and doctors who accept
Medicare assignment. Depending upon where you’re located, this may not always be easy, but it can help minimize your out-ofpocket expenses even if you don’t have Medicare Part B. Also, try to obtain most, if not all, of your medical services from within your plan’s network. There is much more to be said regarding this topic, so we recommend that you watch one of NARFE’s recent webinars on Medicare and FEHB for additional information. The webinars are available for members at www.narfe.org/member/ FederalBenefitsInstitute/.
DIVORCE AND FEHB COVERAGE FOR CURRENT SPOUSE
Q
If my divorce decree dictates that my former spouse gets a full spousal survivor benefit upon my death, and I have also elected the maximum spousal survivor benefit for my current spouse, if I predecease both individuals, would my current spouse be allowed to retain my FEHB?
A
Yes—as long as your current spouse is under your FEHB plan on the date of your death and as long as a spousal survivor benefit is potentially payable, your current spouse would be allowed to keep the FEHB at the same rates that other annuitants pay. Since OPM cannot pay more than one full survivor benefit, your former spouse would receive the spousal survivor benefit, and your current spouse would arrange payment with OPM for the FEHB coverage. If your former spouse predeceases your current spouse, the spousal survivor benefit payment would shift to your current spouse W W W. N A R F E . O R G
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Questions & Answers
(and OPM would take the FEHB premium from the spousal survivor benefit payment).
CREDIT MONITORING
Q
It’s my understanding that OPM has contracted with ID Experts to provide those of us affected by OPM’s 2015 cybersecurity breaches with identity theft services through fiscal year 2026. Does ID Experts offer physical mailings for those of us who don’t use email?
A
Yes, although the most efficient way to access your credit monitoring and identity protection services is through the MyIDCare online web portal (accessible 24 hours a day, 7 days a week). If you received a notification letter with your 25-digit PIN code, you may
request that ID Experts provide you with MyIDCare alternative notifications mailed via the U.S. Postal Service. To address any additional questions regarding this service or to request to enroll in the mailed alternative, call the service provider at 800-750-3004 (Monday through Saturday, 9 a.m. to 9 p.m.). For those of you who have access to the internet, information regarding OPM’s Cybersecurity Resource Center may be found at www.opm. gov/cybersecurity/. 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
Your Federal Benefits Questions Answered! NARFE webinars take perplexing federal benefit options and transforms them into crystal clear choices.
UPCOMING WEBINARS
NEW!
January 9 Avoid Post-Retirement Pitfalls How to Maintain a Secure Future
January 23 Long-Term Care Insurance Lower Risk to Cover Future Care
One hour BONUS Q&A online session after each webinar. REGISTER at NARFE.org/Institute
NARFE FEDERAL BENEFITS INSTITUTE
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More questions? Call or email NARFE’s federal benefits specialists for one-on-one help. All FREE for members. Not a member? Join NARFE today at NARFE.org/Join
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Benefits Brief
FEDERAL LONG TERM CARE INSURANCE PROGRAM ROLLS OUT NEW OPTION
I
f you are actively employed or retired from federal service or are one of the qualified relatives (including spouses, parents, parents-in-law, adult children over 18 and domestic
partners), you may be eligible for a new version of the Federal Long Term Care Insurance Program (FLTCIP). NARFE was instrumental in the passage of legislation creating the program.
The new 3.0 version of FLTCIP provides many of the same features as the previous versions, such as the ability to receive care at home or in a facility, an informal caregiver benefit, 100 percent international coverage, and a “stay-at-home” benefit that helps support care at home up to 30 times your daily benefit amount (DBA). FLTCIP 3.0 also offers a built-in premium stabilization feature designed to reduce the potential need for future premium increases. There is an adjustable amount computed as a percentage of premiums paid that can be used to offset future premiums or provide a refund of the premium death benefit to your beneficiary or estate. This is a promising development for future enrollees who apply for coverage on or after October 21, 2019, but it will not apply to the roughly 270,000 federal and military personnel, retirees and family members already enrolled in other FLTCIP plans. While these 22
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individuals could drop their current policies and re-enroll in FLTCIP 3.0, premiums would be based on their current age rather than their age at the original time of enrollment—in other words, they would lose the accrued value of years of premium payments. Let’s take a closer look. The 3.0 version of FLTCIP offers a DBA of $100 to $450 and a benefit period of two, three or five years. If you receive services that cost less than your DBA or you don’t receive daily services, your benefits will last longer than your benefit period. For instance, if you purchased $150 for 3 years, you would have a pool of money equal to $150 × 365 × 3, or $164,250 to spend on your future care. According to the Department of Health and Human Services, 70 percent of people over age 65 need long-term care at some point in their lives. FLTCIP 3.0 offers an automatic compound inflation option (ACIO), which means that your DBA and maximum lifetime benefit will automatically increase by
BY TAMMY FLANAGAN
Federal Benefits Expert
3 percent compounded each year without a corresponding increase to your premium. Also, there is now a future purchase option (FPO)—every two years, you will be offered a benefit increase and maximum lifetime benefit increase based on the change in consumer prices. If you accept, your premium will increase as well. If you decline the increase offer three times, you will no longer be offered an increase unless you can provide evidence of your good health. Premiums are based on the age you are when you apply, and applicants must pass medical underwriting. Long-term care insurance can benefit you and your family if you need assistance in the future. The huge cost of caregiving can be emotional, physical and financial. Having insurance can give you choices for how to receive the care that you may someday need. Not sure if long-term care is right for you? NARFE is hosting a webinar on this topic on January 23 at 2 p.m. EST. Register online at www. narfe.org. TAMMY FLANAGAN IS MANAGER OF TAMMY FLANAGAN, LLC (RETIREFEDERAL.COM) AND SENIOR BENEFITS DIRECTOR FOR THE NATIONAL INSTITUTE OF TRANSITION PLANNING. SHE IS A FEATURED PRESENTER ON NARFE’S FEDERAL BENEFITS INSTITUTE WEBINAR SERIES.
Federal Employees and Retirees: call today to schedule your hearing exam 1-877-696-5335
FREE charger – Exclusive offer for federal employees and retirees. A full day’s power. Every day. The discreet miniRITE R style with an easyto-use, stylish and reliable charger. Simply recharge at night for a full day of use.1
You may be eligible for a pair of Oticon STM 3 hearing aids for $0 out of pocket. Take advantage of your $2,500 hearing benefit. Opn S breaks the limits of what has previously been possible with hearing aids. Take a more active part in difficult listening situations and get better speech understanding with less effort. You can thrive in noisy environments, just like people with normal hearing.2, 3
Special offer for federal employees and retirees available only at Your Hearing Network locations. Call 877-696-5335 today to schedule an appointment.
Opn S is more than just a hearing aid. It’s a wearable technology that makes it possible to connect to your favorite devices. Take hands-free calls, stream music, connect to smart devices, and more.
Federal Employees and Retirees may be eligible for a pair of Oticon Opn S 3 hearing aids for $0 out-of-pocket.4 Bonus: Free charger, no batteries needed! 1 Lithium-ion battery performance varies depending on hearing loss, lifestyle and streaming behavior. 2 For people with typical hearing loss and well-fitted hearing aids, in noisy situations. 3 Juul Jensen 2018, Oticon Whitepaper. 4 Your out-of-pocket costs may vary depending on plan benefits, eligibility, deductible, co-insurance, and model of device chosen. This is not a guarantee of coverage or payment. Benefit is not available through all insurance plans. Please consult your plan for coverage details.
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It’s never been easier for federal employees to continue working either in or outside of the government. BY EVERETT A. CHASEN
Not long ago, retirement was a time when people simply stopped working, usually at age 65 or so. The retirees had toiled for the same company or agency for 30 to 40 years and were rewarded with a pension. They lived the remainder of their lives surrounded by family and friends. That picture of retirement is outdated, according to Tammy Flanagan, who provides personalized federal employee retirement and counseling through her firm, Tammy Flanagan LLC (www.retirefederal.com). “We should start changing the way we think about retirement,” Flanagan says. “Modern technology has made it easier to work longer and to remain relevant. We’re aging more slowly than we did in the past.”
That trend is borne out by the government workforce. According to the Congressional Research Service, the average age for normal voluntary retirement for federal employees is now 63— having risen steadily from average age 61.3 in 1990. Workers taking normal retirement under the Civil Service Retirement System (CSRS) have completed an average of 37 years of service, whereas those retiring under the newer Federal Employees Retirement System (FERS) have an average of 22.2 years of service.
A NEW VIEW OF AGING
Joseph F. Coughlan, director of the Massachusetts Institute of Technology (MIT) age lab, believes many Americans incorrectly stereotype the elderly as consumers instead of producers. Much of that thinking is rooted in advertising concepts developed for leisure communities in the mid-twentieth century. Coughlan notes that the concept of the “golden years,” popularized by an Arizona builder and developer, “positioned retirement not just as something bad your boss did to you, but rather as a period of reward for a lifetime of hard work.”
Old age can be marked by activity, agency and even renewal. Global aging may be inevitable, but old age, as we know it, is not.” However, Coughlan continues, old age can be marked by “activity, agency and even renewal. Global aging may be inevitable, but old age, as we know it, is not.” He suggests many, if not most, older people want to work, at least while they are physically able—and that employers needing skilled, experienced labor should give seniors’ applications serious consideration. Coughlan and Flanagan agree that technology has made it much easier for older Americans to remain active and working, while still enjoying free time for themselves and with their families. 26
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Flanagan cites the rise of the gig economy—a system in which temporary positions are common and organizations or individuals contract with workers for shortterm engagements instead of hiring them long-term—as a great way for federal retirees to continue to use their skills, work part-time and live wherever they’d like.
You can make a second career doing gigs. You can retire ... and still make money.” “I’ve been doing the gig economy for 35 years,” she explains. Flanagan provides information to federal employees and retirees both in person and online, consults with clients one-on-one, writes a weekly column on retirement planning, and cohosts a radio program—all from her retirement home. “You can make a second career doing gigs. You can retire to Florida, as I did, and still make money, or you can spend your winter at a ski resort and make money.”
TWO RETIREES’ STORIES
Linda Harris is a federal retiree who takes full advantage of the opportunities the gig economy offers. While living in a retirement community in Maryland, she uses the knowledge and skills she gained as a trainer and retirement specialist for the Office of Personnel Management (OPM), the Office of the Comptroller of the Currency (OCC), and in private industry to conduct seminars on benefits for current federal employees. Harris says, “I like what I do, my time is flexible, and I get to say yea or nay to the seminars I’m going to teach. I get to plan my travel, and I make a little extra money in the process.” Besides working and traveling, Harris maintains a fairly busy schedule. She’s in a
While traditional freelance jobs in areas like graphic design and photography have been around for years, the gig economy has really exploded in the last decade with a range of apps that let you perform short-term local tasks for others or post your treasures to a national audience. Whether you’re a working Fed or a retiree, gigs (also known as side hustles) allow you to set your own schedule, step away from your desk and make some extra cash. Below are a list of apps, arranged by category, that can help you book your next gig. —By Mabel Yu, Senior Editor
DO
• Drive. If you’re comfortable being in the driver’s seat and following GPS directions, you can use ridesharing apps like Lyft, Via and Uber to shuttle people from place to place. • Deliver food. Not interested in being a chauffeur? Consider picking up and dropping off meals for users on Uber Eats, Postmates, DoorDash or Caviar. • Grocery shop. Get the satisfaction of crossing off items on someone else’s grocery list when you shop for them on Instacart or Shipt. • Complete household chores. Know your way around a toolbox? Earn money on Handy, an app for housecleaning and handyman tasks like furniture assembly and wall hanging. Apps Takl and Task Rabbit have a slightly larger range of similar jobs. • Walk dogs. Those interested in having some active time with canines may want to sign up as dog walkers on Wag or Rover.
SELL/RENT
• Sell goods. Craigslist and Ebay are still going strong as online marketplaces to offload furniture, collectibles and other items you no longer need. Newer to the game is the app Letgo. Poshmark and Tradesy are trendy additions to the clothing and accessories resale business. • Sell handmade crafts. If your creative hands can happily turn out attractive art, jewelry or crafts, consider listing your wares on Etsy, Art Fire or Zibbet. • Rent your property. Have an extra room, a furnished garage, guest house, vacation home, or backyard yurt that could use some company? Post it on Airbnb, HomeAway or Flipkey. • Rent your car. For times when your vehicle is idling at home—such as if you take public transportation to work or spend your time hoofing it on the weekends—make your car work for you by renting it out on Getaround or Turo.
Note: Not all apps are available or in demand in every locale. Do a little research to figure out what’s popular in your area.
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theater group, is active in her church, goes dancing, writes poetry, reads widely and meditates, and participates in activities her community’s clubhouse offers. “I think working is really healthy for you,” she says. “When people see me and my husband (who is also a federal retiree still working part time), they can’t believe it when I tell them how old we are.”
I think working is really healthy for you. When people see me and my husband, they can’t believe it when I tell them how old we are.”
Bob Braunstein is a federal retiree now living in Florida. After 30 years of government service, he took a buyout from the Office of the Comptroller of the Currency (OCC) and started a new career as a federal benefits consultant. In 2006, he joined the National Institute of Transition Planning (NITP). He now teaches 75-80 seminars a year for the Institute, mostly in Washington, D.C. Despite his heavy teaching schedule, he explains, “a lot of the work I do now is electronic, including webinars and participating in NITP’s radio program. I also do private counseling for clients over the phone, using Skype.” He quotes the late gerontologist Dr. Michael A. Creedon: “You don’t retire from a job—you retire to something.” Whether that something is a life of leisure or another endeavor, the point is to find a focus and a purpose.
STAYING LONGER IN FEDERAL SERVICE
Flanagan is a strong proponent of lifelong learning. “You can not only continue learning in retirement, but you can totally reinvent yourself into something much different than you were when you worked for the government,” she says. “Skills are much easier to obtain today than they were before.” Until recently, people had to go to college or technical schools to change careers. Now, online portals allow anyone to learn new skills or stay up-to-date in their current fields. “Some people,” Flanagan says, “are leaving government because of technology—they feel 28
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that time has passed them by. But others are unwilling to leave because they want to see a project through. They want to adapt to new technologies and make use of them.” Telework—the ability to work from home while communicating with your colleagues or clients by phone, email or online chat/video— has helped many federal employees continue their careers. According to a Global Workplace Analytics study, in 2019, about 4.7 million employees worked from home at least half the time. The number of people who work at home who are not self-employed has grown by 159 percent since 2005—more than 11 times faster than the rest of the workforce. In addition, 40 percent more U.S. employers, including the federal government, offer flexible workplace options now than did five years ago, although only 7 percent make teleworking available to most of their employees. Between 80 percent and 90 percent of American workers would like to telework at least part time. Telecommuting provides greater flexibility in work hours and location and makes it easier to balance work and personal obligations. Many older people find working at home makes them more productive because they don’t have to battle traffic and the distractions working in an office entails. All federal agencies have a telework management officer, the agency’s primary contact for policy and program questions. These officers work with coordinators located throughout the agency on day-to-day operational aspects of telework. All agencies must have a telework policy, but those policies can vary widely from department to department. More information on federal telework policies is available at www.telework.gov.
Forty percent more U.S. employers, including the federal government, now offer flexible work options.” Aside from telework, there are other reasons employees extend their government careers. Flanagan noted the flexible schedules many federal workers have, allowing them to take one
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elecommuting provides greater T flexibility in work hours and location and makes it easier to balance work and personal obligations.”
day a week or every other week off in exchange for working one or two hours longer on days they are on duty. “People feel they have more free time with these schedules. It’s not like they need to retire to have more free time,” she says. The switch from CSRS to FERS has extended careers and has encouraged older people to consider federal employment or return to it later in life. “Under FERS,” Flanagan explains, “retirees don’t get cost-ofliving adjustments until they are 62 (CSRS retirees can leave at 55 if they have completed 30 years of service). And the fact that Social Security is a part of their benefits package, along with an annuity and the Thrift Savings Plan, means that working an additional few years can be really important.”
The abilities we have today could never have been expected 20-30 years ago. It can be exciting to grow older—this could be the best chapter of your life!” FERS was designed, in part, to attract people from private industry who already had the job skills and knew about technologies the government could use. It has also encouraged those who left the government midcareer to return later in life. (Linda Harris was one of them—she left OPM for private industry in her forties and then returned to government 30
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work, years later, at OCC, significantly increasing her highest three years of salary and increasing her annuity.) “Under the old system (CSRS), you didn’t have to understand your retirement benefits. Today, it’s ‘Here’s the website,’” Flanagan says. “If you’re under FERS, you have to understand the relationship between your savings and your retirement. For lower-wage earners, Social Security will replace most of their salary. “For higher-wage earners, Social Security may only replace 15 to 20 percent of what they are making, so they had better be saving consistently every year, or they won’t be able to retire and match the income they had. Most FERS employees discount the role Social Security plays in retirement—but it’s a big role. We’re living longer and delaying taking Social Security (thereby allowing benefits to increase by approximately 8 percent every year from age 62 to age 70), which can have a big effect.” Flanagan recommends that older Feds interested in continuing to work check out the website www.growingbolder.com. The site’s founder believes that if people change their beliefs about growing older, they can change how they age—just as the MIT Media Lab suggests. “It’s exciting to me, and a little bit unbelievable,” she concludes. “The abilities we have today could never have been expected 20-30 years ago. It can be exciting to grow older—this could be the best chapter of your life!” — EVERETT A. (EV) CHASEN IS A WRITER AND COMMUNICATIONS CONSULTANT IN THE WASHINGTON, DC AREA. HE IS RETIRED FROM THE FEDERAL GOVERNMENT AFTER 35 YEARS OF SERVICE.
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Automation: Assembling the Future By David Tobenkin
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Here’s potential good news for federal employees who have mundane tasks they don’t like: there may soon be a “bot” for it. Bots, or robotic process automation (RPA), are computer applications that can automate the repetitive, nitpicky elements of jobs, such as inputting data from forms. During fiscal year 2019, the federal National Science Foundation (NSF) introduced their first bots. “Today, the tools used to develop bots are new and a bit difficult to use, but in the future, people who understand their business process should be able to explain what they want the bot to do and have the bot do the task for them,” says NSF Chief Information Officer Dorothy Aronson. She notes that in some instances, work that used to take staff five hours per day is now done with the support of a bot in one hour. “For example, an accountant might get daily emails that tell him or her to debit or credit an account in a ledger. A bot could read the email, log into an accounting system, and enter the transaction for the accountant. We have hundreds of ideas for using bots in our science and research program offices, finance, HR, IT and procurement.” Such bots are just one example of a wave of automation that is washing over the federal government.
AUTOMATION AND THE FEDERAL GOVERNMENT
Automation includes technological innovations that replace human functions with machines and
computer algorithms. Typically, automation replaces individual functions with machine processes, but if one replaces enough functions, entire jobs can be replaced as well. Generally, the initial focus is anything that is rule-based and involves large quantities of data or repetitive actions, says Justin Neroda, a principal at consulting firm Booz Allen Hamilton. A considerable portion of the low-hanging fruit for efficiency improvements in the federal workforce has already been tapped. Armies of federal clerical workers from decades ago have been replaced by computers. Large centralized HR functions have reduced HR and similar administration staffing, with many functions once performed by humans pushed onto website applications that employees access via their computers. But there are still many job functions that federal employees and contractors do that a computer could probably do better, says Dominic Delmolino, chief technology officer at consulting firm Accenture Federal Services. “We are seeing a lot of automation interest among federal agencies, particularly for financial W W W. N A R F E . O R G
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activities such as accounts receivables and payables, lookups of data, and reviewing the correctness of invoices.”
ADMINISTRATION DIRECTIVES
The Trump administration has prioritized automation as a federal workforce action item, notes Joshua New, senior policy analyst at the Washington, DC-based think tank Center for Data Innovation. In August 2018, the Office of Management and Budget (OMB) released a guidance document proposing that federal employees move from low-value work to high-value work. The memo calls on agencies to examine reforms—including introducing new technologies, such as RPA—that will reduce repetitive administrative tasks. In February 2019, President Trump signed an executive order, dubbed the American AI Initiative, that listed five objectives for artificial intelligence (AI)— the use of advanced analytical algorithms to process data to make deductions and perform higher level logical and data analyses that can facilitate automation.
The objectives of the initiative include increasing investments for AI research and development, setting standards for trustworthy AI, and protecting the United States’ advantage in AI and AI technology. “The Trump administration is showing strong support for artificial intelligence and automation and is putting pressure on agencies to emphasize updating the federal workforce with these skills to make sure they can do their jobs efficiently,” says New. A critical foundational step for much federal agency automation is digitizing paper records. In June 2019, OMB and the National Archives and Records Administration set deadlines for agencies to manage all of their records in an electronic format before the end of 2019 and to digitize their historic, permanent records before the end of 2022.
NEW EFFORTS
Communicating with the public is one key area of federal automation. Some agencies are deploying chatbots and virtual assistants to field questions from the public.
“They are using AI to do coding to recognize that those terms refer to a single job category. That type of processing can reduce the processing time for a report from one hour to five or six minutes.”
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In 2015, the Department of Homeland Security’s U.S. Citizenship and Immigration Services deployed “Emma,” a computergenerated virtual assistant that can answer immigration questions in English or Spanish, in writing and orally (English only), and take users to the right spot on the U.S. website to provide further information. Emma has answered more than 34 million inquiries to date. Such bots can reduce simple queries to human employees and are available 24/7. Federal agencies are also applying AI to improve data processing, says Delmolino. For example, in 2018, the Bureau of Labor Statistics (BLS) implemented AI to help accident reviewers code accidents under the Occupational Health and Safety Act (OSHA) with respect to different categories. The AI application uses algorithms to deduce, for example, which job category of accident victims were involved in a particular accident. “There are, for example, 30 words [federal agencies] use that refer to janitorial work,” says Demolino, who notes Accenture was not involved in that automation effort. “They are using AI to do coding to recognize that those terms refer to a single job category. That type of processing can reduce the processing time for a report from one hour to five or six minutes. Then the BLS employee just reviews and confirms that AI coded it correctly.” With the help of AI and other advanced technologies, automation is moving up the value chain, which mirrors what is already happening in the private sector, says Booz Allen Hamilton’s Neroda. “This is particularly the case in the customer service realm. If you dialed a phone number three or four years ago, automated attendants would have had a lot of difficulty understanding you. “Now such attendants are much more robust, with the ability to understand more questions and do more things.” Neroda continues. “We are also seeing more orchestration of different automation functions to run one process after another, interact with each other and track their
execution. Many of the federal clients we are servicing are getting into that realm.”
NEW FRONTIERS
Self-driving vehicles, one of the largest automation initiatives nationwide, is being explored by the United States Postal Service (USPS). In May 2019, the USPS issued a statement that it had conducted a test of automated trucks with autonomous truck developer TuSimple. “The truck, with a safety engineer and driver on board, made five round trips between postal facilities in Arizona and Texas [each totaling more than 2,100 miles (3,380 km) or around 45 hours of driving],” noted the USPS in the statement. “We are conducting research and testing as part of our efforts to operate a future class of vehicles which will incorporate new technology to accommodate a diverse mail mix, enhance safety, improve service, reduce emissions and produce operational savings.” During the trials, drivers did take over management of the vehicle when they encountered potentially unsafe situations, says Robert Brown, TuSimple’s director of public affairs. Brown notes that USPS contracts out most of its long-haul delivery to third-party contractors rather than using USPS staff, and that the ultimate effect on federal employees’ jobs, therefore, might be minimal. Brown says the deliveries were 100 percent on time, and that a University of California, San Diego study found that there was a 10 percent improvement in fuel savings. Brown says the first automated driving route by the USPS is expected to be up for bid in 2020, though even then, a single W W W. N A R F E . O R G
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AGENCY LEADERS INTERESTED IN AUTOMATION There is significant interest in automation among federal agencies’ decision-makers, according to the survey “Today’s State of Federal Automation” by automation consultant ServiceNow, which was released in October 2017. The poll of 150 decision-makers from federal civilian, defense and intelligence revealed the following:
77% said they would need greater
automation in their workplace in the next five years to keep up with the increasing pace of work at their agency, with 41% saying it was needed within 12 months.
77% spend more than a quarter of their
workday on manual administrative tasks.
The top three manual tasks performed at work are emailing updates, requests or approvals (87%), updating spreadsheets (78%), and completing electronic documents and forms (77%). One-third of respondents still
hand deliver paper files to others.
human driver, instead of the current standard team of two drivers, would likely continue to ride with TuSimple vehicles until full automation can be achieved (no earlier than 2021). He estimates TuSimple vehicles could save 30 to 40 percent over current human teams through greater efficiencies, lower maintenance, and lower labor and lower fuel costs. However, Brown emphasizes that TuSimple’s automation only applies to long-distance components of mail delivery, and that it would not be able to navigate dense city traffic, much less deliver the packages to consumers.
THE CHALLENGES OF AI
Still, expectations and the promise of future technological endeavors should be balanced with reflection on federal agencies’ past and present challenges regarding implementing automation technology. A notable example that affects most federal employees are past attempts by the 36
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Legacy systems, budget uncertainty and a shortage of skilled workforce were the top three obstacles to the adoption of intelligent automation by federal agencies, the survey found. “We have seen significant strides made by the federal government to accelerate its modernization journey, starting with a shift in culture, greater funding and policy enactments,” says Bob Osborn, chief technology officer, federal, ServiceNow. “These advancements mark an inflection point in the federal government’s digital transformation, but there is still work to be done.” —David Tobenkin
Office of Personnel Management (OPM) to digitize and automate the processing of federal retirement claims. The digitization efforts were halted in 2011 after the agency encountered numerous IT difficulties relating to planning, oversight, system testing, cost estimates and progress reporting. A May 2019 Government Accountability Office (GAO) report noted that paper processing continues at the agency and remains one of the largest obstacles OPM faces in meeting retirement claims processing benchmarks. Among the biggest challenges for current AI efforts are preparing and helping employees interface with functions that have been automated, says Kristen Vaughan, Accenture Federal Services human capital lead. “The workforce often feels like agencies putting in AI are not consulting them. Agencies need to work with employees on an AI roadmap that clarifies what roles will be automated and how they will be
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a partner so that they don’t fear the loss of their jobs.” Labor unions agree. “When agencies look to improve technology and increase automation, those are changes that directly impact employees, and they should be part of the discussion from the outset,” says National Treasury Employees Union (NTEU) National President Tony Reardon. “For example, as more Americans file their tax returns electronically, IRS employees who work on processing tax returns face dramatic changes. In 2017, when tax return processing was phased out by the IRS in Covington, KY, the IRS and NTEU hammered out a way to mitigate the impact on as many IRS employees as possible with extensive discussion and a negotiated memorandum of understanding. “The agreement included, among other things, a Workforce Restructuring Team to identify and find other work for affected employees,” Reardon continued. “This is how
labor management relations in the federal sector is supposed to work.” Some agencies emphasize that regardless of AI strides, human beings will always remain in control. “What will not be replaced is human judgment, which is central to the safe lawful use of any Department of Defense system,” says Lt. Cmdr. Arlo Abrahamson, spokesperson for the Department of Defense Joint AI Center (DoD JAIC). “A human will always be accountable, and our activities will be guided by our policies.” Abrahamson says the JAIC is supporting DoD units in using AI and machine learning technology for predicting and mitigating key mechanical issues, enhancing effectiveness of aircraft maintenance, failure diagnosis, parts and personnel management, and increasing availability of key combat systems. — DAVID TOBENKIN IS A FREELANCE REPORTER BASED IN THE GREATER WASHINGTON, DC AREA.
Regardless of artificial intelligence strides, human beings will always remain in control. “A human will always be accountable and our activities will be guided by our policies.”
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NARFE’s Dues Withholding Program What is dues withholding? It is a dues-payment method available to retired NARFE members, their spouses and annuitant survivors giving them the option to have their annual NARFE membership dues deducted from their annuities each month. Advantages • Save 15% off your annual NARFE dues • Sign up your spouse and double your savings • You’ll never get another dues reminder from us • Your monthly payment is affordable and convenient • You may cancel your dues withholding at any time
How does it work? One-twelfth of your total dues is automatically deducted from your monthly annuity. Your monthly deduction is determined by the following formula: ($34 NARFE dues ÷ 12) + (Chapter dues - if applicable ÷ 12) = total monthly deduction How do I sign up? It takes 60-90 days to process your application. Once the process is complete, you will receive a special membership card distinguishing you as a NARFE dues-withholding member. To learn more about dues withholding, call 800-456-8410.
NARFE Dues Withholding Application for NARFE Members who are Retirees, Spouses of Retirees or Annuitant Survivors Complete this section ONLY if you are signing up for Dues Withholding. If so, DO NOT send payment
o YES. I want to enroll in NARFE’s Dues Withholding Program. NARFE dues of $34 (a 15% discount off NARFE dues) and chapter dues, if applicable, to be withheld annually. Civil Service Annuity Number
Social Security Number (9-digit number)
–
C S
–
–
–
(Include prefix, CSA or CSF) (Include any applicable suffix)
o Mr. o Mrs. o Miss o Ms. Full Name ____________________________________ Street Address ________________________________ Apt./Unit _____________________________________ City _________________________ State _____ ZIP __
NARFE MEMBERSHIP INFORMATION
NARFE Membership ID _______________________________ NARFE Chapter Number ______________________________
o YES. I also authorize my (NARFE member) spouse’s dues to be withheld from my annuity. (Additional annual dues of $34 and chapter dues, if applicable, to be withheld annually. If YES, enter spouse’s information below.)
Phone (__________) ___________________________ Email _______________________________________ Date of Birth _________ /_________ /__________________ mm
–
dd
yyyy
STOP
Complete ONLY if signing up for Dues Withholding option.
Spouse’s Name ____________________________________ _________________________________________________ Spouse’s Membership ID _____________________________ Spouse’s Email _____________________________________
AUTHORIZATION (Withholding will begin in 60-90 days). Send NO PAYMENT with Dues Withholding Application! I authorize the United States Office of Personnel Management to make appropriate deductions from my annuity payments, not to exceed the amount certified by the National Active and Retired Federal Employees Association as the amount of dues for which I am annually obligated, in accordance with elections I made above, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I made. Please allow 60-90 days for processing. I understand that this authorization shall be valid until NARFE receives and processes my written notice of cancellation in accordance with its agreement with the Office of Personnel Management and that any disputes regarding this authorization shall be a matter between NARFE and myself. I hold the Office of Personnel Management harmless for any erroneous allotment deduction made pursuant to this authorization. ___________________________________________________________________________
Signature of Annuitant or Survivor-Annuitant
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Dues payments and gifts or contributions to NARFE are not deductible as charitable contributions for federal income tax purposes.
MAIL THIS FORM TO: NARFE, ATTN: Member Services, 606 N. Washington St., Alexandria, VA 22314-1914 800-456-8410
memberrecords@narfe.org
Do not send money with this form
(DW-2 06/19)
Managing Money
MIND THE FIVE-YEAR RULE FOR TAX- AND PENALTYFREE ROTH DISTRIBUTIONS
T
he prospect of tax-free earnings has led to a surge in the popularity of Roth accounts, but earnings will only be tax-free with a qualified distribution, which
includes satisfying the five-year rule. In actuality, there are two five-year rules Roth account owners need to be aware of. Understanding them and how they apply to the various sources of money that may be held in a Roth account is important to maximizing the potential of a Roth account. There are three possible sources of money in Roth accounts—after-tax contributions, conversions from traditional tax-deferred retirement plans, and earnings. As previously stated, earnings may only come out tax-free with a qualified distribution. Otherwise, the earnings will be taxable, and possibly subject to a 10 percent early distribution penalty if the withdrawal occurs prior to age 59½. Contributions and Roth conversions, on the other hand, are made with after-tax dollars and may be distributed tax-free at any point. While contributions may also be distributed penalty-free at any point, Roth conversions will be subject to an early distribution penalty unless five years have passed since the conversion. A qualified distribution occurs when two conditions have been satisfied. First, the Roth account owner has
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attained age 59½ (exceptions to that are in the event of death or total disability, and for firsttime homebuyers); and two, the five-year rule has been satisfied. Both conditions must be met. The five-year rule for qualified distributions applies to both Roth IRAs and employer-based Roth accounts like the Roth TSP. There are some differences in the way the five-year rule is applied, however. For example, once the five-year rule is satisfied for one Roth IRA, it’s deemed to be satisfied for all Roth IRAs an individual may own. On the other hand, if an individual has multiple employer-based Roth accounts, the five-year rule must be satisfied separately for each one. Furthermore, satisfying the five-year period for a Roth IRA won’t satisfy the five-year requirement for an employer-based Roth account, or vice-versa. And, if an employer-based Roth account
BY MARK A. KEEN,
CFP®
is transferred to a Roth IRA, any holding period established in the employer-based Roth account will not carryover to the Roth IRA. The holding period does carry over from one employerbased Roth account to another employer-based Roth account when the money is transferred by a direct rollover. (Go figure.) If a Roth conversion is involved, a second five-year rule will apply separately to each conversion amount. Satisfying this five-year requirement is necessary to avoid a 10 percent early distribution (pre-59½) penalty if any conversion amount is distributed. Anyone over age 59½ need not worry about this five-year rule—reaching age 59½ is the exception to avoiding the early distribution penalty. Other exceptions apply, too. For example, death, disability, and an age 55 exception (for employer-based plans) would allow a Roth conversion to be distributed penalty free before five years have passed. The five-year rules require five tax years to pass from the first time any money (either contribution or conversion) hits the Roth account. Regardless of when the contribution or conversion is made, the clock starts on January 1 of the applicable tax year.
BENEFITS RESOURCES NARFE offers members a wide range of information on federal benefits. Visit www. narfe.org/federalbenefits and www.narfe.org/ FederalBenefitsInstitute.
Conversions may be made as late as December 31, but contributions may be made as late as April 15 the following year. If a Roth IRA is first funded with a contribution, it can take as little as three years and eight months to satisfy five tax years. For example, a contribution made on April 15, 2020 for the 2019 tax year will still start the five-year clock on January 1, 2019. The IRS has specific rules for identifying the source of money included in a Roth account distribution. For the Roth TSP, all distributions come
proportionately from contributions and earnings, but for a Roth IRA, distributions come first from contributions, then conversions (on a first-in first-out basis when multiple conversions are present), and, finally, earnings. The IRS Roth rules aggregate all accounts, so it will be necessary to track any applicable five-year rules and the amounts they are associated with, regardless of whether the amounts are in separate accounts or comingled in a single Roth account. Given the IRS distribution ordering rules, it’s possible to take money out of a Roth IRA tax and penalty free, even in the event of a nonqualified distribution. Knowing the source of funds in a Roth account—and how the rules apply to the various sources—is key. 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.
National Life Membership Application 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: _________________________________
I am a (check all that apply)
o Active Federal Employee o Active Federal Employee Spouse
o Annuitant o Annuitant Spouse o Survivor Annuitant
Life Membership Fee Schedule Ages 30-39 40-50 51-55 56-60 61-65 66-70 71-75 76-80 81-90 91-100+
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. __________________________________________
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.
Expiration Date _____ /_______ mm yyyy
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.
Name on Card _____________________________________ Signature _________________________ Date ___________
MAIL THIS APPLICATION TO NARFE Member Services 606 N. Washington St. / Alexandria, VA 22314-1914 W W W. N A R F E . O R G
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2019
G FUND
F FUND
C FUND
S FUND
I FUND
NOVEMBER
0.14%
-0.05%
3.63%
4.54%
1.15%
OCTOBER
0.14%
0.28%
2.16%
1.93%
3.60%
SEPTEMBER
0.14%
-0.54%
1.87%
1.06%
2.87%
YTD
2.08%
8.76%
27.61%
25.27%
18.63%
1 YEAR
2.34%
10.76%
16.09%
11.87%
12.91%
3 YEAR*
2.51%
4.24%
14.86%
11.01%
10.04%
5 YEAR*
2.27%
3.31%
11.00%
8.92%
4.64%
10 YEAR*
2.24%
3.83%
13.47%
13.56%
5.66%
2019
*ANNUALIZED
L INCOME
L 2020
L 2030
L 2040
L 2050
NOVEMBER
0.71%
0.83%
1.77%
2.10%
2.38%
OCTOBER
0.70%
0.79%
1.67%
1.95%
2.20%
SEPTEMBER
0.51%
0.63%
1.28%
1.50%
1.69%
YTD
6.81%
8.44%
15.49%
18.14%
20.41%
1 YEAR
5.40%
6.08%
10.13%
11.52%
12.64%
3 YEAR*
4.76%
6.28%
9.02%
10.14%
11.12%
5 YEAR*
3.79%
4.77%
6.51%
7.19%
7.77%
10 YEAR*
4.30%
6.77%
8.47%
9.41%
N/A
*ANNUALIZED
RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP (For additional monthly returns, go to www.tsp.gov.) G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)
OPM RETIREMENT CLAIMS PROCESSING STATUS
Claims Received
Inventory Monthly FYTD (Steady State Average Processing Average Processing is 13,000) Time in Days Time in Days
2018
OCTOBER 9,012 19,729 63 63 NOVEMBER 7,510 19,162 61 62 DECEMBER 5,782 18,019 60 61 JANUARY 13,264 23,121 58 60 FEBRUARY 10,792 23,370 58 57 MARCH 10,048 20,201 50 55 APRIL 6,993 17,802 56 55 MAY 7,877 17,228 62 56 JUNE 8,201 18,501 60 56 JULY 8,000 18,413 55 56 AUGUST 8.878 17,576 50 56 SEPTEMBER 7,456 17,376 57 56 OCTOBER 7,044 17,882 59 59 FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. l Source: OPM
2019
For the Record
NOVEMBER GAINS FUEL MARKET OPTIMISM
THRIFT SAVINGS PLAN FUND RETURNS
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2020
Positive investor sentiment prevailed as U.S. stock indices reached all-time highs. Indications of strength in employment and consumer spending outweighed concerns about manufacturing and business investment. Perceived progress in trade negotiations and continued accommodation by the Federal Reserve further fueled the optimism. The C and S Funds posted gains. The I Fund also rose, although a stronger U.S. dollar dampened its growth. Longer-term interest rates rose slightly, leading to a loss in the F Fund. All of the L Funds posted gains.—BY MICHAEL JERUE, FINANCIAL ANALYST, THRIFT SAVINGS PLAN
COUNTDOWN TO COLA
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 0.26 percent in October 2019. To calculate the 2020 costof-living adjustment (COLA), the 2020 third-quarter indices will be averaged and compared with the 2019 third-quarter average of 250.199. The percentage increase determines the COLA. October’s index, 250.894, 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 2.5 percent higher than the December 2018 base index of 244.786. The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes.
MONTH
CPI-W
Monthly % Change
% Change from 250.199 239.668
OCTOBER 2019 2017
240.573 250.894
-0.15 0.26
0.28 0.38
NOVEMBER
240.666
0.04
0.42
DECEMBER
240.526
-0.06
0.36
JANUARY 2020 2018
241.919
0.58
0.94
FEBRUARY
242.988
0.44
1.39
MARCH
243.463
0.20
1.58
APRIL
244.607
0.47
2.06
MAY
245.770
0.48
2.55
JUNE
246.196
0.17
2.72
JULY
246.155
-0.02
2.71
AUGUST
246.336
0.07
2.78
SEPTEMBER
246.565
0.09
2.88
Donate to NARFE Programs Support Alzheimer’s Research NARFE members contributed for Alzheimer’s research: $14 Million Fund
$13,253,463.41*
*Total as of October 31, 2019 100 percent of all contributed funds go to Alzheimer’s research. If you have any questions, write to: NATIONAL COMMITTEE CHAIR Olivia Williams 22 Garden Springs Road Columbia, SC 29209
Enclosed is my NARFE-Alzheimer’s contribution: $______________ Every cent that is contributed is used for research.
q Mr. q Mrs. q Miss q Ms. Name:____________________________________________________ Address:__________________________________________________ City:______________________________________________________ State:_____________________________________________________ ZIP:______________________________________________________
EMAIL: oeashf3@gmail.com
Chapter Number:___________________________________________
WRITE YOUR CHAPTER NUMBER ON CHECK; MAKE IT PAYABLE TO:
Credit Card Information:
q MasterCard
q VISA
AND MAIL TO:
q Discover
q AMEX
Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633
Card Number:______________________________________________
NARFE-Alzheimer’s Research
YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.
Expiration Date:_____(mm)/____ (yy) 3-Digit Security Code:______ Signature:_______________________________ Date:___ /___ /____ Name: (please print)________________________________________
Give to the NARFE-FEEA Fund MAKE CHECK PAYABLE TO: NARFE-FEEA Fund PLEASE MAIL COUPON AND CHECK TO:
FEEA 1641 Prince St. Alexandria, VA 22314
q YES!
I would like to help with my contribution.
The NARFE-FEEA Fund supports NARFE members during disasters; provides scholarships to their children, grandchildren and greatgrandchildren; and funds other programs to support NARFE members at the direction of NARFE and FEEA. Enclosed is my NARFE-FEEA Fund Contribution: $______________
YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.
Name:____________________________________________________ Address:__________________________________________________ City:______________________________________________________ State:_____________________________________________________ ZIP:______________________________________________________ Email:____________________________________________________ To make credit card or e-check contributions, visit www.feea.org/ givenarfe.
Benefits Brief
NARFE News
WEBINARS ON DEMAND
TERM CARE FEDERAL LONG GRAM INSURANCE PRO OPTION ROLLS OUT NEW
BY TAMMY FLANAGAN
Federal Benefits Expert
d each
nde 3 percent compou federal service esponding loyed or retired from year without a corr f you are actively emp to your premium. spouses, ng ease ludi incr (inc s tive lified rela a future also now is re c The or are one of the qua 18 and domesti O)—ever y w, adult children over purchase option (FP parents, parents-in-la Federal be offered a the will of you ion s, vers year new two be eligible for a maximum partners), you may benefit increase and TCIP). NARFE was efit increase based rance Program (FL ram. lifetime ben in consumer Long Term Care Insu prog the ting crea on the change passage of legislation r instrumental in the es. If you accept, you
I
NARFE MAGAZINE ADDS NEW COLUMN pric policies increase. If drop their current premium will also of 3.0, ease offer The new 3.0 version re-enroll in FLTCIP and you decline the incr the of y man based on be ld no longer wou will s FLTCIP prov ides you ium s, prem three time ious prev the than as er rath ures ease unless same feat their current age be offered an incr the ability of ence evid at the original time versions, such as ide age r prov thei you can home or other words, to receive care at of enrollment—in your good health. rmal d on lose the accrued base ld in a facility, an info are s wou ium they Prem 100 percent ium n you caregiver benefit, value of years of prem the age you are whe rage, and nts must international cove payments. apply, and applica efit that . The ben e” look er -hom clos riting. a y-at erw “sta take a Let’s pass medical und at home up CIP offers rance can helps support care 3.0 version of FLT Long-term care insu y benefit 0 and a $45 to family 0 r $10 you to 30 times your dail of a DBA benefit you and , three ce in amount (DBA). benefit period of two if you need assistan rs a ive rece you cost of If e s. FLTCIP 3.0 also offe hug year or five future. The stabilization less than your the emotional, built-in premium services that cost caregiving can be reduce ive daily rece ’t l. Hav ing don ncia you feature designed to fina or DBA physical and for future will last choices the potential need ices, your benefits rance can give you s. There is an serv efit period. insu ben r care that you the ive premium increase than er rece to for how puted as long d com hase unt purc amo le you d. nee adjustab For instance, if you may someday iums paid ld m care a percentage of prem for 3 years, you wou Not sure if long-ter offset future $150 al to that can be used to a pool of money equ you? NAR FE is for have t righ nd is refu a ide this 3, or $164,250 on × 365 premiums or prov inar × web a $150 hosting h benefit to re care. 23 at 2 p.m. of the premium deat to spend on your futu topic on Januar y estate. artment your beneficiary or r onli ne at ww w. According to the Dep g ices, EST. Reg iste Serv an Hum This is a promisin and of Health nar fe.org. re over age development for futu 70 percent of people ly for care at some ER OF TAMMY enrollees who app 65 need long-term TAMMY FLANAGAN IS MANAG ber 3.0 Octo r CIP afte . FLT RAL.COM) AND SENIOR coverage on or point in their lives FLANAGAN, LLC (RETIREFEDE not apply pound com ic AL INSTITUTE mat NATION auto THE 21, 2019, but it will an FOR offers BENEFITS DIRECTOR ,000 federal which SHE IS A FEATURED to the roughly 270 tion option (ACIO), OF TRANSITION PLANNING. el, retirees infla and DBA ITS INSTITUTE r BENEF you AL and military personn FEDER that ’S ns mea PRESENTER ON NARFE already efit and family members imum lifetime ben WEBINAR SERIES. CIP plans. max increase by y icall mat enrolled in other FLT auto will als could While these individu
I
n 2020, we’re not just starting a new year; we’re entering a new decade. As we move into another cycle of publishing our award-winning publication, expect a few changes in NARFE Magazine. We will continue to bring you important advocacy updates, benefits questions and answers, great features about things affecting the federal community and, of course, NARFE News: all | the things you love about NARFE Magazine—and more. Starting this month, we are also featuring federal benefits news in our new Benefits Brief column, which you’ll find after the Q&A section. In this column, which will run on an as-needed basis and eventually become a regular part of each issue’s content line-up, 22
JA N 2 0 2 0
expect to hear from federal benefits experts on news about how your benefits work. This month, renowned federal benefits expert Tammy Flanagan talks about the new long-term care plan option available from the Federal Long Term Care Insurance Program. Future columns will include insight about changes or important updates to other federal benefit programs and spotlights on programs that are less widely known. In February, James Marshall will be contributing a column on the Social Security Restricted Application, a frequently overlooked benefit that applies to certain individuals. NARFE Magazine values reader input on content. We welcome suggestions at communications@ narfe.org or to NARFE
WHO’S NEW AT NARFE HQ
M
agda Halim recently joined NARFE as assistant manager for the new business development and events department. She holds a bachelor’s degree from Johnson and Wales University in international hospitality and tourism management. Magda has worked in associations for several years, focusing on sponsorship fulfillment
44
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2020
and event management. She will mainly be responsible for supporting NARFE events such as FedCon and LegCon as well as fulfillment of sponsorship, advertising and Member Perk deliverables. Please join us in welcoming her to NARFE.
Did you know that NARFE’s popular webinars are always available online within 48 hours of running? Access the recorded programs at www.narfe.org/ member/federalbenefitsinstitute (login is required). You can also download transcripts of the Q&A sessions that follow most webinars. NARFE’s Federal Benefits Institute helps you take charge of your benefits!
Headquarters, Attn: Mabel Yu, Senior Editor, 606 N. Washington St., Alexandria, VA 22314. Letters to the editor are not published in the magazine, but we will make every effort to respond to individual suggestions. — BY HELEN MOSHER, STAFF VICE PRESIDENT OF MARKETING, COMMUNICATIONS AND MEMBERSHIP
MAGAZINE CUSTOMER SERVICE If you ever miss an issue, please contact our communications office at communications@ narfe.org. We will send out a replacement issue at no charge to you. If you need to change your address, please notify memberrecords@narfe.org at least two months in advance. Or, call us at 703-838-7760 and ask for communications or member records, respectively.
CORRECTION In our November and December 2019 Open Season coverage, we incorrectly identified the new GEHA plans in the rate charts. The correct names of the two plans are GEHA Elevate (incorrectly listed as GEHA Elevate Standard) and GEHA Elevate Plus. We apologize for any confusion this may have caused.
NARFE MEMBER BENEFITS • Access the NARFE Federal Benefits Institute for powerful resources to help you fully understand and manage your benefits.
Active and Retired Federal Employees ... Join NARFE Today! The only organization dedicated solely to protecting and preserving the benefits of all federal workers and retirees, NARFE informs you of any developments and proposals that affect your compensation, retirement and health benefits, AND provides clear answers to your questions.
Who Should Join NARFE?
If your future security is tied to federal retirement benefits—federal retirees, current employees, spouses and individual survivors—you should join NARFE.
• Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits. • Get monthly issues of NARFE Magazine with news and insights for the federal community. • Visit the Member Perks page for a full listing of the many time-, money- and hassle-saving benefits available only to NARFE members. • The opportunity to get involved at the local level by joining a chapter in your area. 1Q6
NARFE MEMBERSHIP APPLICATION YES. I want to join NARFE for the low annual dues of $40.
q
q Mr. q Mrs. q Miss q Ms.
PAYMENT OPTIONS q Check, Money Order or Bill Pay (Payable to NARFE) q Bill me (NARFE membership will start when payment is received.) q Charge my: q MasterCard
______________________________________________
Full Name
______________________________________________
Street Address Apt./Unit
______________________________________________
City
State
ZIP
______________________________________________
Phone
q Discover
q AMEX
___________________________________________ Card No. Expiration Date _____ /________ mm
______________________________________________
q VISA
yyyy
___________________________________________ Name on Card ___________________________________________ Signature ___________________________________________ Date
TOTAL DUES
______________________________________________
$40 Annual Dues X ___________ = ___________ Per Person # Enrolling Total Dues
I am a (check all that apply)
Dues payments are not deductible as charitable contributions for federal income tax purposes.
q Active Federal Employee q Annuitant
q Active Federal Employee Spouse
q Annuitant Spouse
q Survivor Annuitant
q Please enroll my spouse _________________________________________
Spouse’s Full Name
LOOKING TO MEET OTHERS in the federal community and participate in NARFE at a local level? Call 800-456-8410 to learn about a NARFE chapter in your area.
_________________________________________
Would you like to receive a FREE one-year chapter membership? Choose one: q Chapter closest to home OR q Chapter #____________
THREE EASY WAYS TO JOIN
MAY WE THANK SOMEONE? Did someone introduce you to NARFE? Please provide their Name and Member ID.
Spouse’s Email
1. Complete this application and mail with your payment to NARFE Member Services / 606 N Washington St / Alexandria, VA 22314-1914.
2. Join online at www.NARFE.org. 3. Call 800-456-8410, Monday through Friday, 8 a.m. to 5 p.m. ET.
___________________________________________ Recruiter’s Name ___________________________________________ Recruiter’s Membership ID NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties. (08/19)
Member Perks Perks Member
SAVE MONEY WITH NARFE PERKS NARFE appreciates your service, and so do businesses across the country. Whether you are planning your next vacation or planning for retirement, members can save money on everyday purchases, thanks to our Affinity Partners. It’s just one more way we’re able to say “thank you” for being a NARFE member.
R
ShopNARFE
PUT YOUR NARFE MEMBERSHIP TO WORK Money-saving discounts that benefit you. For a complete list of Member Perks, visit www.NARFE.org/memberperks. 46
| J A N
2020
INSURANCE: NARFE Insurance Services 1-800-233-5764 www.narfeinsurance.com
Plans administered by Mercer Health offering life, short term recovery, pet, travel, vision and hospital insurance policies.
Nationwide
1-855-550-9216
Discover how Nationwide’s suite of insurance solutions can help protect your financial future.
TRAVEL: Choice Hotels International 1-800-258-2847 www.choicehotels.com
Receive 20% off of your next stay when you use the special rate id 00801967.
Alamo 1-800-462-5266
www.alamo.com
Drive Happy with Alamo, where NARFE members receive year-round discounts using contract id 262544.
Avis 1-800-633-3469 www.avis.com
Avis has 5,500 locations worldwide. Get discounted rate using the AWD number A701900.
MemberDeals 1-877-579-1201
www.memberdeals.com/narfe
Exclusive discounts on nationwide attractions and entertainment.
WELLNESS: Brookdale Senior Living 813-440-8415 www.brookdale.com
Discounts on memory care, independent and assisted living communities, and more throughout the U.S. Offer good on new move-ins only.
HearUSA
1-855-845-2706 www.hearusa.co/narfe
The Nation’s Most Trusted Name in Hearing Care. Choose from 250+ models from 11 manufacturers, including Bluetooth, Wireless, Nearly Invisible and more!
PERSONAL SERVICES: Allied Van Lines – Coleman Worldwide 800-239-4099, ext. 99445 nicole.wood@colemanallied.com Discounted moving services across the United States.
Office Depot/Office Max
1-855-337-6811, ext. 2897 www.officediscounts.org/narfe
Save up to 80% on more than 93,000 products. Shop online or in any Office Depot or Office Max Store.
Verizon Fios
Verizon Fios offers NARFE members that are new customers to Verizon Fios a discount on the double and triple play packages IF the new account is opened online using the link found at www.narfe.org/memberperks. W W W. N A R F E . O R G
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47
The Way We Worked
FIGHTING POLLUTION Ash Springs, a spring-fed swimming hole 100 miles north of Las Vegas, was a popular swimming and recreational spot because of its natural hot springs. In this 1972 photo, an Environmental Protection Agency (EPA) employee visits Ash Springs to take water samples. One of the EPA’s responsibilities is to protect and monitor water in the United States. The Bureau of Land Management, part of the Department of Interior, had to close Ash Springs in 2013 due to overuse and pollution. There’s no timetable for when the spring will reopen to the public.
PHOTO from the Records of the Environmental Protection Agency, National Archives, courtesy of 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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2020
DID YOU KNOW? As the United States acquired additional land from France, Spain and other countries during the early 19th century, the government needed a way to oversee the increasing acreage. In 1812, Congress created the General Land Office to manage public land, and in 1939, it created the U.S. Grazing Service to manage the animals grazing on public land. These two agencies merged to form the Bureau of Land Management (BLM), which was established during the Truman Administration in 1946.
Visit www.blm.gov
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Enjoy a fully guided 4-island Hawaiian vacation with beachfront lodging on Kauai, Maui, and the “Big Island” of Hawaii, and in Waikiki on Oahu. Includes a Pearl Harbor experience where you will see the USS Arizona Memorial. Visit historic Lahaina, enjoy a boat cruise on the Wailua River, and authentic Hawaiian entertainment and food at our Farewell Feast. Guided by our friendly Tour Directors— your local experts. Price includes 3 inter-island flights.
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Experience everything from gumbo to the Alamo on this journey through Louisiana and several of Texas’ foremost cities. Experience the Southern Gothic charm of New Orleans’ French Quarter, and be inspired by Houston’s Smithsonian-affiliated Space Center. Explore the Southfork Ranch, the setting of Dallas and the perfect place to enjoy a chuck wagon lunch. This journey will give you the chance to fall in love with Texas and New Orleans, one of America’s most colorful regions.
Enjoy a spectacular cruise & tour between Seattle and Alaska including 7 nights aboard Holland America Line’s ms Westerdam and 4 nights on land. You’ll cruise the Gulf of Alaska and the Inside Passage—a breathtaking sea lane teeming with marine wildlife, where you’ll pass glaciers, mountains, and lush forests, with stops in Ketchikan, historic Skagway, and magnificent Glacier Bay. On land, you’ll go deep into Denali National Park, tour Anchorage, and see the Alaska Wildlife Conservation Center.
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Your life is active. Your life is Your life is active. active. You deserve You You deserve deserve hearing aids that hearing aids hearing aids that that can keep up. can keep can keep up. up.
Pay nothing on over 250 hearing aid styles! Pay nothing on over 250 hearing aid Pay nothing on over 250 hearing aid styles! styles! Access all the newest & best technology at HearUSA. Access all the newest & best technology at Access all the newest & best technology at HearUSA. HearUSA. HearUSA offers more than 250 styles of hearing aids HearUSA offers more than 250 styles of hearing aids HearUSA offers more than 250 styles of hearing from every major manufacturer, available withaids no from every major manufacturer, available with no from every major manufacturer, available with no out-of-pocket expense for NARFE members with Aetna, out-of-pocket expense for NARFE members with Aetna, out-of-pocket expense NARFE members Aetna, Blue Cross Blue Shieldforand GEHA health with insurance. Blue Cross Blue Shield and GEHA health insurance. Blue Crossmembers Blue Shield and GEHA insurance. All NARFE are entitled to thehealth HearUSA Affinity All NARFE members are entitled to the HearUSA Affinity All NARFE members are entitled to the HearUSA Affinity Partner Discount Program! Partner Discount Program! Partner Discount Program! With more than 30 years in hearing care, HearUSA has With more than 30 years in hearing care, HearUSA has With more than 301years in people hearingexperience care, HearUSA has helped more than million a better helped more than 1 million people experience a better helped more than 1 million quality of life through better people hearing.experience a better quality of life through better hearing. quality of life through better hearing.
NARFE Member Exclusive NARFE NARFE Member Member Exclusive Exclusive • NARFE members may be entitled • NARFE members may be entitled * • NARFE members may be entitled to 2 FREE hearing aids! to 2 FREE hearing aids!** to 2co-pay FREE hearing • $0 for manyaids! plans! • $0 co-pay for many plans! •• $0 co-pay60-Day for many plans! Risk-Free Trial • Risk-Free 60-Day Trial •• Risk-Free 60-Day Trialbatteries Free 3-year warranty, • Free 3-year warranty, batteries • Free 3-year warranty, batteries & follow-up care & follow-up care & follow-up care
Schedule your FREE hearing appointment: Schedule Schedule your your FREE FREE hearing hearing appointment: appointment:
1-855-252-0025 1-855-252-0025 1-855-252-0025
HearUSA is the exclusive Affinity Hearing Care Partner for NARFE members. HearUSA is the exclusive Affinity Hearing Care Partner for NARFE members. The hearing aidsHearUSA NARFE members want withAffinity the outstanding service HearUSA is known for every step of the way. is the exclusive Hearing Care Partner for NARFE members. The hearing aids NARFE members want with the outstanding service HearUSA is known for every step of the way. The hearing aids NARFE members want with the outstanding service HearUSA is known for every step of the way.
*This is not insurance and insurance benefits vary. Some restrictions apply. 1 year battery supply with purchase of hearing aids. Offer valid at participating HearUSA providers only. Call for details. *This is not insurance and insurance benefits vary. Some restrictions apply. 1 year battery supply with purchase of hearing aids. Offer valid at participating HearUSA providers only. Call for details. *This is not insurance and insurance benefits vary. Some restrictions apply. 1 year battery supply with purchase of hearing aids. Offer valid at participating HearUSA providers only. Call for details.