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COVER STORY
federal forecast Post-Election Prediction: Severe Threats Ahead
P.24
P.10
NARFE 2015-16 Legislative Achievements
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give your valentine an estate plan
Volume 93 • Number 2
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Call Beltone at 1-888-418-6763 to schedule your complimentary hearing screening, today! *The insured may need to submit for reimbursement. State and/or local taxes may apply. Prices and products subject to change. Blue Cross and Blue Shield Service Benefit Plan will pay a hearing aid benefit up to $2,500 every 3 calendar years for adults age 22 and over, and up to a $2,500 total per calendar year for members up to age 22. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in your 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 your 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 benefits first. To find out what is covered under your policy, contact the Service Benefit Plan. The products and services described herein are neither offered not guaranteed under any local Blue company’s contract with the Medicare program. In addition, these items are not subject to the Medicare appeals process. Any disputes regarding these products and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, BCBSA, 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. Blue Cross and Blue Shield Association is an association of independent, locally operated Blue Cross and Blue Shield Companies. State and local taxes and/or fees may apply. Available at participating locations until 12/31/17.
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WashingTon Watch
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6
What to Expect from the 115th Congress
7
Committee Leadership Changes
8
Congress Takes No Action to Mitigate Medicare Increase
8
Stop-Gap Funding Bill Passes
9
Effort to Deliver Postal Reform Fails
10
NARFE’s Legislative Accomplishments in the 114th Congress
12
Top 5 Reasons to Attend the Legislative Conference
13
Legislative Conference Registration Form
Cover Story
federal forecast. Ominous clouds are gathering for federal employees and retirees following the 2016 federal elections. See what’s at risk.
Columns estate taxes. Be good to your loved ones. Give them the gift of an estate plan that covers the basics and considers the special needs of feds.
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4
From the President
38 Managing Money 40 The Informed Citizen DEPARTMENTS
14 Questions & Answers 42 For the Record:
TSP Returns, Retirement Claims Status, Countdown to COLA
On the Web visit us online at:
www.narfe.org
44 NARFE News 48 The Way We Worked
like us on facebook:
NARFE National Headquarters follow us on twitter:
@narfehq
ON THE COVER
Illustration by Bill Pragluski, Critical Stages, LLC w w w. n a r f e . o r g
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february 2017 | Volume 93 | Number 2
Editor Margaret M. Carter Editorial Administrator Toni Vallario Graphic Design Charlene Gridley Editorial Board Richard G. Thissen, Jon Dowie
Editorial Office: narfe magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Email: communications@narfe.org Advertising Sales: Warren Berger Media People Inc. 122 East 42nd St., Suite 1622 New York, NY 10168 Phone: 212-779-7172, ext. 223 Email: wberger@mediapeople.com
NARFE for the Visually Impaired On the Telephone: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-5047300 or go to www.nfbnewsline.org. On digital audio: Issues of narfe magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider.
The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.
National Active and Retired Federal Employees Association NATIONAL OFFICERS RICHARD G. THISSEN, President; natpres@narfe.org JON DOWIE, Secretary/Treasurer; natsectreas@narfe.org
REGIONAL VICE PRESIDENTS
REGION I James P. Crawford (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 603-630-5191 Email: crawfordjim62@gmail.com REGION II Evelyn Kirby (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-604-1141 Email: ekirby@atlanticbb.net 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 Edward J. Konys (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 937-470-0566 Email: region4vp@gmail.com
REGION IX Richard Wilson (Alaska, Idaho, Montana, Oregon and Washington) Tel: 253-210-5609, CELL: 425-736-6899 Email: narfe1404@comcast.net
REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 620-241-1131, CELL: 620-504-2202 Email: ek617@att.net
REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 703-830-6590, CELL: 703-201-6304 Email: wshack1951@aol.com
Here’s How to Contact Us…
to join NARFE, renew your Membership or find a local chapter:
Call (toll-free) 800-627-3394 OR GO TO www.narfe.org To change your address, phone number or email listing:
CALL (TOLL-FREE) 800-456-8410, EMAIL memberrecords@narfe.org OR GO TO www.narfe.org, log in and click on “Update My Record”
TO REACH A FEDERAL BENEFITS Specialist:
Email fedbenefits@narfe.org NARFE HEADQUARTERS
606 N. Washington St. Alexandria, VA 22314 703-838-7760
www.narfe.org
narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $40. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2017, 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, but at the same time we will not undertake to guarantee the reliability of our advertisers.
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From the President
NARFE’s Alzheimer’s Efforts
I
hope you all read the article in the January issue reporting that NARFE had surpassed its goal of raising $12 million
for Alzheimer’s research by the end of 2016. We are now on our way to meeting our goal of raising a cumulative $13 million by the end of 2018. NARFE’s involvement in raising funds for Alzheimer’s research dates back to 1985. With the assistance of the Alzheimer’s Association, the NARFE-Alzheimer’s National Committee is responsible for voting each year on the research projects to be funded by our donations. It is important to point out that we have an agreement with the Alzheimer’s Association that every dollar donated from NARFE members is
NARFE’s Mission Statement To support legislation and regulations beneficial to federal civilian employees and annuitants and potential annuitants under any federal civilian retirement system and to oppose those detrimental to their interests. To promote the general welfare of federal civilian employees and annuitants and potential annuitants, to advise and assist them with respect to their rights under retirement, health and other employee and retiree benefits laws and regulations, and to represent their interests before appropriate authorities. To cooperate with other organizations and associations in furtherance of these general objectives.
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used exclusively to support research. While the Alzheimer’s Association provides reimbursement for the NARFE-Alzheimer’s National Committee’s expenses, that money comes from the Alzheimer’s Association’s other funding sources. The tremendous support of NARFE members for the cause of finding a cure for Alzheimer’s disease has placed us at the top of associations providing direct fundraising. Because of this, NARFE is a member of the Alzheimer’s Association’s prestigious Zenith Society, a group of donors who have provided at least $1 million. In addition to our efforts to support research, NARFE signed an agreement with the Alzheimer’s Association in 2016 to form a NARFE “Walk to End Alzheimer’s” National Team. Alzheimer’s walks provide support to local communities for caregiving and other support services. While many NARFE members have participated for years in Alzheimer’s walks, this agreement allows NARFE members to create local NARFE teams to participate in walks, and NARFE receives credit for donations raised by these teams. A great benefit to NARFE is that the banner that is located at each and every walk across the country includes the NARFE logo, in recognition of the NARFE-Alzheimer’s Association partnership. My sincere thanks to you all. And let’s all keep giving, walking and working for a cure!
Richard G. Thissen NARFE national President natpres@narfe.org
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Washington Watch
A
s this issue arrives in NARFE members’ mailboxes, the 115th Congress will be underway, and it’s possible that both the House and Senate already will have voted to
repeal the Affordable Care Act. It’s also possible that legislation affecting the federal community may have been considered, or at least introduced. However, NARFE expects the most significant threats to arise throughout the course of the year, notably as part of the congressional budget process for fiscal year 2018. This issue’s cover story, beginning on page 24, provides a more comprehensive preview of the year ahead. But here are some of the proposals related to the federal community that may be under consideration: • Increasing the share that federal employees and retirees pay for their health benefits through the Federal Employees Health Benefits Program (FEHBP); • Eliminating retiree health benefits for new hires, which would lead to an ever-aging and more costly risk pool, resulting in premium increases for current employees and retirees alike; • Lowering the rate of return on 6
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the Thrift Savings Plan’s G Fund to near zero, eliminating real returns on this retirement investment; • Increasing federal employee contributions toward retirement by as much as 6 percent without increasing benefits, which would be a de facto pay cut; action alert!
was completed on time and under budget. Repairs secured the artwork within the Rotunda, including the Apotheosis of Washington (center) and the Frieze of American History.
• Eliminating the Federal Employees Retirement System annuity entirely for new hires; • Reducing the federal workforce through attrition by instituting a hiring freeze or limits on new hiring; • Instituting pay freezes or limits on future pay increases for federal employees; • Reducing merit-service principles/due process protections for federal employees; and • Calculating annuities based on the highest five years of service, rather than the highest three. NARFE is encouraging members to take action now to let Congress know you oppose cuts to your earned benefits. Please see the action alert below for more de-
F e b r u ar y
READ ALL ABOUT the potential threats to your earned pay and benefits in the 115th Congress on page 24. To help prevent these cuts, contact your members of Congress now, using NARFE’s toll-free line:
866-220-0044
Architect of the Capitol
What to expect from the 115th Congress: Feds face multiple threats
Restoration of the Capitol Dome
COMMITTEE LEADERSHIP IN THE 115th CONGRESS tails. We will provide action alerts in each month’s issue. For more timely updates, visit the NARFE website, www.narfe.org, or provide NARFE your email address to receive weekly legislative updates. In addition to the threats posed to the federal community generally, threats for federal retirees include: • Converting Medicare to a voucher program, where beneficiaries would receive financial support to buy private insurance in lieu of Medicare. Whether this will be pursued by both the House and Senate, and exactly how this would interact with the FEHBP remain uncertain. • Reducing cost-of-living adjustments (COLAs) to Social Security benefits and federal retirement annuities by using the Chained CPI to measure changes in consumer prices. • Requiring postal retirees to enroll in Medicare or forfeit their FEHBP benefits. On the bright side, there may be opportunities to pursue positive changes, including: • Reforming the Windfall Elimination Provision (WEP), which could reduce the WEP penalty for current and future retirees. • Reforming how Medicare premiums are determined when low Social Security COLAs limit increases for some, but lead to even greater increases for others, including many Civil Service Retirement System retirees. • Reforming the Federal Long Term Care Insurance Program. —By John Hatton, Deputy Legislative Director
As the 115th Congress convened, leadership of committees key to NARFE’s legislative efforts apparently will remain largely unchanged. At press time, leaders of the House Oversight and Government Reform Committee were not expected to change. Rep. Jason Chaffetz, R-UT, will remain chairman, and Rep. Elijah E. Cummings, D-MD, likely will continue as ranking member (senior committee member of the minority party). In the Senate Homeland Security and Governmental Affairs Committee, Sen. Ron Johnson, R-WI, is expected to remain chairman. Sen. Claire McCaskill, D-MO, Sen. McCaskill will serve as the ranking member, replacing Sen. Tom Carper, D-DE. In the House Budget Committee, Rep. Tom Price, R-GA, will remain chairman, but he has been nominated to be Secretary of Health and Human Services and would step down upon Senate confirmation. On the minority Rep. Yarmuth side, Rep. John Yarmuth, D-KY, likely will be ranking member, replacing Rep. Chris Van Hollen, D-MD, who was elected to the Senate.
Leaders of the Senate Budget Committee look to continue, with Sen. Michael B. Enzi, R-WY, likely to continue as chairman, and Sen. Bernie Sanders, I-VT, remaining ranking member. Rep. Kevin Brady, R-TX, will remain chairman of the House Ways and Means Committee; Rep. Richard Neal, D-MA, will be ranking member. In the Senate Finance Committee, Sen. Orrin G. Hatch, R-UT, is expected to remain as chairman, and Sen. Ron Wyden, D-OR, is ranking member. —By Ross Apter, Legislative Staff Assistant
Legislative Resources • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE Legislative Department staff, distributed via email and available by phone (toll-free) at 877-217-8234 and online at www.narfe.org. • Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.
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Washington Watch
Congress takes no action to mitigate medicare increase
L
egislation to prevent a disproportionately large increase in 2017 Medicare Part B premiums for many federal retirees and others not “held harmless” did not receive consideration before the 114th Congress adjourned. H.R. 6428, introduced Dec. 2 by Rep. Dina Titus, D-NV, would have limited premium increases to $4 for individuals who are not held harmless and not subject to higher premiums due to higher incomes. NARFE worked with Titus to introduce the bill. While the so-called “hold harmless” provision of Medicare law limits Part B premium increases for most beneficiaries to the annual cost-of-living adjustment (COLA) in their Social Security benefit – an average increase of $4 in 2017 – that protection does not apply to those who do not pay premiums from a Social Security benefit, including federal annuitants under the Civil Service Retirement System, who did not pay into Social Security during their government careers and
who, consequently, do not receive Social Security benefits. The hold harmless provision also does not apply to new enrollees or those with higher incomes. Because total Medicare premiums are designed to cover 25 percent of the cost of the program, those not held harmless are forced to pay higher premiums to cover the lost premium income resulting from application of the hold harmless provision to others. “How one pays their Medicare premiums should not dictate the amount of those premiums. And it certainly should not mean that they must pay more than those with the same income. This is grossly unfair to millions of Americans,” said NARFE President Richard G. Thissen. “NARFE thanks Rep. Titus and the 34 original cosponsors of H.R. 6428 for supporting a fix to this problem.” While the bill gained additional support, it was not considered by the full House before it adjourned. That means the previously announced premium rates will remain – at $134 for the standard
stop-gap funding bill passes Prior to adjourning, the 114th Congress passed a temporary funding bill to keep the government operating at current levels through April 28, giving the new Congress and new president a chance to have it their way in the spring. The bill avoided most of the controversial riders often affixed to such must-pass legislation. However, it did include a provision preventing members of Congress from getting a pay raise in 2017. This continuing resolution also included $170 million for the infrastructure and health needs of communities (including Flint, MI) affected by contaminated drinking water and more than $850 million for the 21st Century Cures Act of 2016, which boosts medical research. —By Alan Lopatin, Legislative Counsel 8
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premium, and more for those with higher incomes. NARFE will work with Titus and others to reach a permanent solution to this situation in the new Congress. —By John Hatton, Deputy Legislative Director
MYTH vs. REALITY Myth: Federal employees enjoy lavish pensions at the expense of taxpayers. Reality: The average federal annuity is modest. According to April 2016 data from the Office of Personnel Management, the median annuity (middle point of the range) under the Civil Service Retirement System (CSRS) was about $3,500 a month in fiscal year 2015. For most federal employees hired after 1986 and in the Federal Employees Retirement System (FERS), the median monthly annuity was about $1,300. CSRS employees do not pay into Social Security and, accordingly, do not receive Social Security benefits for their government service. If they paid into Social Security for a private-sector job, their Social Security benefits are greatly diminished under the Windfall Elimination Provision. FERS employees pay Social Security taxes at the same rate as privatesector employees and receive the same Social Security benefit.
Last-minute effort to deliver Postal Reform fails
D
espite a last-minute push to pass substantial postal reform legislation before the 114th Congress adjourned, no agreement was reached to consider the bill, and time ran out for Sen. Tom Carper, D-DE, the leading sponsor of the bill. When it appeared that the bill might be considered in the final days of the session, NARFE expressed its concern in lobbying and in a letter to the congressional leadership and all senators. In the letter, NARFE said it opposed including any postal reform mea-
to pay additional health insurance premiums for more, mostly duplicative, coverage or lose their earned health insurance coverage entirely.” While provisions opposed by NARFE were not enacted into law, bipartisan efforts from the 114th Congress likely will be carried forward into the early days of the 115th. While new legislation must be introduced and considered, the legislative threat remains as the new Congress gets underway.
sures in year-end legislation that would “require current postal retirees to enroll in Medicare or forfeit their hard-earned retiree health benefits.” NARFE President Richard G. Thissen argued that Congress should not “force postal retirees to bear the burden of fixing United States Postal Service finances.” He explained that “such provisions break a long-standing promise to postal retirees by removing choice regarding their health care, forcing them either
—By John Hatton, Deputy Legislative Director
Contribute To NARFE-PAC I want to make a monthly sustainer credit card contribution:
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I want to make a one-time contribution: q $250 – Gold lapel pin and blanket q $100 – Silver lapel pin
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Washington Watch
NARFE’s Legislative Accomplishments
I
n the 114th Congress, the federal community continued to face assaults on its earned benefits. As a result, NARFE’s legislative efforts focused on defeating proposals attacking federal employees and retirees, as well as working toward solutions to other concerns
facing NARFE members. Here are highlights of the Association’s accomplishments as the 114th Congress (2015-2016) concluded in December 2016. Thwarted ALL attempts by Congress to cut the earned pay and benefits of federal employees and retirees. • Successfully opposed $318 billion in cuts to the federal community proposed in the Fiscal Year (FY) 2016 budget resolution. The House of Representatives’ FY 2016 budget resolution contained eight provisions totaling $318 billion in cuts to the federal community. These cuts included raising retirement contributions of current federal employees, cutting the size of the federal workforce, increasing enrollees’ share of Federal Employees Health Benefits Program (FEHBP) premiums and reducing the return of the Thrift Savings Plan’s (TSP) most stable investment vehicle, the G Fund. Ultimately, none of those cuts were passed into law, thanks to the hard work of NARFE and its members. • Prevented the Senate from paying for highway improvements on the backs of the federal community. As the Senate debated a six-year highway bill in 2015, some senators suggested offsetting the cost by changing the rate of return of the TSP’s G Fund, rendering the fund nearly worthless, as the return would be lower than the average savings account. Such a change would have cost TSP participants $32 billion. 10
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NARFE members and lobbyists sprang into action, and Congress was forced to look for other places to find the money. • Sent a powerful, and successful, message to Congress that the federal community had given enough toward deficit reduction. A budget agreement offsetting sequestration cuts for two years did not take from federal employees or retirees. After the federal community contributed more than $120 billion to pay for other priorities in recent years, NARFE members have been sounding the drumbeat: Enough is enough! A two-year budget deal was signed into law at the end of 2015, increasing spending levels by $80 billion without offsets to the federal community, even after the initial budget called for $318 billion in cuts. NARFE’s message is resonating on Capitol Hill. Successfully mitigated disproportionately high and unfair increases in Medicare Part B premiums. • Prompted congressional action on the Medicare Part B “hold harmless” issue, reducing the impact of premium increases on federal retirees and other seniors. Without a cost-of-living adjustment (COLA) in 2016, millions of Medicare enrollees not “held harmless” would have seen their
premiums increased by 52 percent, unless Congress or the administration took action. NARFE began sounding the alarm on this issue on the Hill and with the administration before any other organization. Due to NARFE’s lobbying efforts and the messages sent to legislators by thousands of NARFE members, a compromise fix was included in the two-year budget agreement, limiting the 2016 premium increase to 15 percent for those not held harmless. • For a second time, helped mitigate Medicare premium increases for those not held harmless. In the face of a small retiree COLA in 2017, which did not trigger the budget deal’s provisions, NARFE secured the introduction of legislation to mitigate the effects of Medicare premium increases for those not held harmless, in a situation similar to 2016. While this legislation was not considered by Congress, premium increases previously had been limited (to 10 percent, as opposed to about 20 percent) through action by the administration due to concerns raised by NARFE and its coalition partners. Protected postal retirees’ health benefits through the Federal Employees Health Benefits Program (FEHBP). • Successfully opposed provi-
114th Congress sions in postal reform legislation in both the House and the Senate that would have required all eligible postal retirees and their spouses to enroll in Medicare or forfeit their earned retiree health benefits coverage through the FEHBP. NARFE worked tirelessly in opposition to these provisions, supporting amendments that would prevent loss of health insurance coverage entirely, maintain choice for postal retirees and/or reduce the cost of additional coverage. Ultimately, sponsors of the legislation were unsuccessful in bringing it before Congress, in large part due to NARFE’s objection to mandatory Medicare. In response to significant spikes in premiums in the Federal Long Term Care Insurance Program (FLTCIP), provided information and support for enrollees and pushed Congress to act to avoid a repeat of the situation. • Provided critical information and secured dedicated support for Association members who participate in the program. After being informed of the increases (averaging 83 percent, but as high as 126 percent), NARFE secured a dedicated phone line and personalized counseling for members from the staff of the contractor administering FLTCIP. NARFE also hosted an informational webinar to help enrollees with their choice of coverage options. • Played a key role in securing a November 2016 hearing on the FLTCIP rate hike. NARFE President Richard G. Thissen testified at the
hearing and offered policy solutions to improve the affordability of the program and prevent such staggering premium increases from occurring again. NARFE is continuing to promote legislative solutions. Worked to keep Association members informed regarding data breaches at the Office of Personnel Management (OPM). • Stayed in constant communication with OPM officials to ensure NARFE members were provided the information they need to protect their financial well-being. NARFE immediately created a website to provide answers to members’ questions. NARFE also testified on Capitol Hill, stressing: “It is imperative that we not only act swiftly to remedy this situation, but we also must ensure an incident of this magnitude does not repeat itself. We must do a better job of protecting the millions of federal employees who serve this nation.” Obtained greater identitytheft protection for victims of the OPM data breaches. • Worked to increase identity theft protection provided to individuals impacted by the OPM data breaches. NARFE supported lifetime identity theft protection, while the services offered after the breaches covered only three years. In the FY 2016 Omnibus Appropriations bill, those impacted were awarded 10 total years of coverage. While not the lifetime coverage NARFE sought, this was a notable improvement in the length of the identity theft protection.
Supported efforts to protect TSP participants from receiving bad financial advice. • Successfully supported a proposed rule to hold financial advisers to a “best interest” standard, instead of the current “suitability” standard, when providing advice regarding rollovers and other financial matters. At a hearing before the Department of Labor, NARFE President Thissen’s testimony focused on NARFE’s concern that federal employees and retirees and military personnel who are invested in lowfee TSP funds are not adequately protected from bad financial advice, particularly about whether to roll over TSP funds into an outside individual retirement account. The rule became effective in June 2016, and initial compliance requirements begin in April 2017. Propelled NARFE media coverage to new heights. • Earned unprecedented coverage in the press throughout the 114th Congress. Thanks to a combination of being out in front on certain issues and efforts to draw attention to others that were being overlooked by the media, NARFE was mentioned in the press more than 750 times in 2015 and nearly 190 times in 2016 on such wide-ranging topics as the Medicare Part B issue, the new Self Plus One option and the OPM data breaches. NARFE also garnered more coverage in national news outlets, including CBS Evening News, on which NARFE’s legislative director appeared, and Fox Business News, on which NARFE’s legislative counsel appeared. w w w. n a r f e . o r g
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Washington Watch
TOP 5 Reasons to attend the Legislative training conference
N
ARFE’s Legislative Training Conference is March 12-15. There is still time to register. Here are the top five reasons to attend: 1. To Learn: Through presentations by nationally recognized speakers and at a variety of breakout sessions, you will learn how to improve your advocacy efforts. 2. To Build and Strengthen Relationships: At NARFE’s Day on the Hill, March 15, you will meet with your legislators as an advocate and constituent, humanizing key issues affecting millions
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of Americans and their families. 3. To Demonstrate NARFE’s Commitment: Your meetings on Capitol Hill will show that NARFE members are committed to protecting the pay, retirement and health care benefits they earned in their careers in public service. The more meetings NARFE holds with legislators, the more the Association can influence votes on NARFE issues. 4. To Hear New Perspectives: You will gain ideas that you can implement at home to invigorate your fellow NARFE members
to advocate on behalf of all federal employees and retirees. 5. To Network: You will meet and mingle with people who “speak your language” and face the same challenges as you. It’s an opportunity to share tactics and strategies. Registration deadline is February 10. To register online, or for more information, go to www. narfe.org/legcon2017. To register by postal mail, use the form on the facing page. Questions? Email the Legislative Department at leg@narfe.org.
4/15/14 1:26 PM
REGISTRATION FORM
Registration must be returned by February 10, 2017
Each participant must complete a form. Please write legibly. Name:
o Mr.
o Mrs.
o Miss
o Ms. o Dr.
__________________________________ Last
NARFE Membership # __________________________
__________________________
_____________________________
First
Middle
Name as you would like it to appear on badge: _________________________________________________________ Federation or chapter officer title for your badge (choose only one title — Examples: President, Ohio Federation; or NARFE-PAC Chair, Chapter 192/Raleigh, NC): __________________________________________________________ ________________________________________________________________________________________________ Home address: ___________________________________________________________________________________ ________________________________________________________________________________________________ Preferred phone: ____________________________ Email address: _______________________________________ Notify in case of emergency: ________________________________________________________________________ Name
Your congressional district (ex. MD-1): _____________ (This is listed on your magazine label)
Phone number
o Charge to my credit card $ _________________ o MasterCard
$175 registration fee is not refundable.
o VISA
o Discover
o AMEX
Please complete registration form and return with check made payable to NARFE, or charge to your credit card.
Card # ______________________________________________
Mail to: NARFE Legislative Conference Budget & Finance 606 North Washington St. Alexandria, VA 22314-1914
Name on card (print) __________________________________
Exp. Date ________ / _______ (mm)
Signature ______________________________
For Internal Planning Purposes Only: Conference meals and events are included for registered attendees. Are you planning on attending the Sunday night dinner? o Yes o No Are you planning on attending the breakfasts on Monday, Tuesday and Wednesday? o Yes o No Attendees may bring guests to all NARFE-provided meals for a separate $175 fee. This fee does not include participation in the trainings or materials. Will you have a guest for meals? o Yes o No Name of guest(s) _____________________________________________________ Is this your first NARFE Legislative Training Conference? I am a(n):
o Active Federal Employee o Annuitant
(yy)
o Yes
o No
o Active Federal Employee Spouse
o Annuitant Spouse
o Survivor Annuitant
Can NARFE include your name, chapter and title on a list of attendees that will be distributed to participants? o Yes o No
Date________
For Internal Planning of March 15 on Capitol Hill: Do you plan to ride the NARFE-provided bus to Capitol Hill on March 15? o Yes o No Do you plan to return to the hotel from Capitol Hill on the bus later that afternoon? o Yes o No Do you plan to attend the evening reception? o Yes o No
Questions & Answers
The following Questions & Answers were compiled by NARFE’s Federal Benefits Service Department staff. NARFE does not provide advice or assistance on legal, financial planning or tax matters.
employees Retired Public Safety officers can take penalty-free TSP withdrawals at age 50
Q
I am a federal law enforcement officer and plan to retire this year at age 54. Will there be any penalties if I take my Thrift Savings Plan (TSP) savings out and roll them into an outside account?
A
According to the TSP, the 10 percent penalty tax for receiving a distribution before reaching age 59 ½ does not apply to payments after you separate from service during or after the year you reach age 55, or age 50 if you are a public safety employee. The TSP also states that, in general, “you will owe taxes on those contributions (except contributions made from tax-exempt pay) and earnings when you receive a payment (distribution) from your account. You may continue deferring payment of taxes by transferring or rolling over the payment to a traditional IRA or an eligible employer plan.” 14
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Federal tax rules are complicated; you should consult with a tax professional before taking any action with your TSP account.
Is my FERS Annuity Supplement at Risk?
Q
Some members of Congress have mentioned ending the Federal Employees Retirement System (FERS) Annuity Supplement. I am eligible for retirement this year. How will this affect my FERS retirement?
A
We can’t give you a definitive answer because any bills calling for eliminat-
ing the FERS supplement could change if and when they come up for a vote. NARFE will keep members updated on any legislation affecting federal benefits.
Benefits paid to employees’ survivors
Q A
If a federal employee dies before retiring, is any support provided for a surviving spouse?
Under both the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS), survivor benefits for a current spouse are payable. Here is information from the Office of Personnel Management (OPM): CSRS Employee. If a CSRS employee dies, recurring monthly payments may be made to the surviving spouse if the employee
completed at least 18 months of creditable service and was covered under CSRS at the time of death. To qualify for the monthly benefit, the surviving spouse must have been married to the employee for at least nine months. If the death occurred before nine months, a survivor annuity still may be payable if the employee’s death was accidental or there was a child born of the marriage. FERS Employee. If a FERS employee dies with at least 18 months of creditable civilian service and the surviving spouse was married to the deceased for at least nine months, the surviving spouse may be eligible for the Basic Employee Death Benefit, which is equal to 50 percent of the employee’s final salary (or average salary, if higher), plus $15,000, increased by CSRS cost-of-living adjustments beginning December 1, 1987. The $15,000 now has increased to $29,722.95. If the death occurred before nine months of marriage, a survivor annuity may be payable to the spouse if the employee’s death was accidental or there was a child born of the marriage to the employee. Under both retirement systems, benefits also are available to surviving unmarried dependent children. For more information, go to the OPM website, www.opm.gov, click on “Retirees and Families,” then on “Death and Survivor Benefits.”
retirees Retirees cannot open TSP Accounts
Q
Can I join the Thrift Savings Plan (TSP)? I am an 80-year-old Civil Service Retirement System retiree, and I didn’t enroll when I was working.
A
No, you cannot enroll in the TSP as a retiree. Only federal employees can enroll in and contribute to the TSP.
Monthly vs. biweekly premium payments
Q
In the November 2016 issue of narfe magazine, the article on the Federal Benefits Open Season listed the 2017 premiums for the plans in the Federal Employees Health Benefits Program (FEHBP). I noticed that the biweekly payment for a Self Plus One plan under Blue Cross Blue Shield’s Standard option is cheaper than the monthly payment. I know that current employees pay on a biweekly basis, while annuitants pay monthly. This is a difference of $40.13 per month. I am an annuitant. Is it possible for me to pay for my health plan on a biweekly basis instead of monthly?
A
There is no difference in premiums under the FEHBP – everyone pays the same rate. However, employees pay every pay period, and there are typically 26 pay periods
a year, so the enrollee share of the premium is deducted from more paychecks (26) than from monthly annuities (12). When you retire and are receiving your annuity once a month, the premiums for your health insurance must be deducted once a month. Therefore, you must pay the monthly premium amount and not the biweekly amount, which are the same on a yearly basis.
Suspending FEHBP Coverage indefinitely
Q
Quite a while ago, you advised me about suspending my Federal Employees Health Benefits Program (FEHBP) coverage because I am eligible for TRICARE For Life coverage as a military retiree. The Office of Personnel Management approved the suspension, and this is working well for me. Can I remain suspended from the FEHBP indefinitely?
A
Federal annuitants can apply to suspend (not cancel) their coverage in the FEHBP in favor of coverage under TRICARE, TRICARE For Life, a Medicare Advantage HMO plan, CHAMPVA, Medicaid or as a Peace Corps volunteer. Once you have suspended your FEHBP enrollment, you are in that status until you decide to re-enroll in the FEHBP during a future Federal Benefits Open Season. There is no time limit. So, in short, yes, you can be in a suspend status indefinitely.
w w w. n a r f e . o r g
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15
Questions & Answers
annuity reduced if returning to service?
Q
I retired from the federal government in 2012 after 32 years of service. I retired under the Civil Service Retirement System (CSRS). I received a buyout and was told I must wait five years before returning to federal service. On April 1, it will have been five years. If I return to federal service, would I lose any portion of my retirement benefits?
A
If you were to return to federal civilian service, there would be no effect on your CSRS annuity. However, in most situations, if you were reemployed in a full-time position
subject to retirement contributions, your salary in your new job would be reduced by the amount of your annuity.
Where to get info on life insurance policy
Q
My mother died recently, and I am executor of her estate. I have been trying to find information about a life insurance policy she may have had through her work at the VA hospital, from which she retired years ago. How can I find out if the life insurance policy exists so I can include it in her estate holdings? I’ve tried, but I can’t get through to the Office of Personnel Man-
agement (OPM) by phone.
A
If your mother was a federal retiree, she probably was enrolled in the Federal Employees’ Group Life Insurance program (FEGLI). If you haven’t already done so, you must report her death to OPM so it can provide you and other family members with a package of forms, including the application for FEGLI insurance benefits. You can report the death online at www. opm.gov/retirement-services/ my-annuity-and-benefits/lifeevents/death/report-of-death/ or call OPM at 888-767-6738 (but, as you know, it is difficult to get through on that line). You also can
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Questions & Answers
report the death by emailing OPM at retire@OPM.gov or writing to OPM, Retirement Operations Center, PO Box 45, Boyers, PA 16017. Make sure you include a copy of the death certificate.
When will 1099-R Tax forms be available?
Q
When can I expect to receive my form 1099-R for 2016 from the Office of Personnel Management (OPM) so that I can complete my federal income tax return?
A
For civil service retirees and survivors whose annuity is paid by OPM,
the 1099-R form (“Distributions From Pensions, Annuities, Retirement or Profit-sharing Plans, IRAs, Insurance Contracts, etc.”) should be mailed to you by the end of January. Those retirees who use OPM’s Services Online to view and print their 1099-R’s may find theirs available a bit sooner.
confirming health insurance coverage
Q
In 2017, will I again need to certify to the Internal Revenue Service (IRS) that eligible dependents under my federal health plan were fully covered in 2016?
Do you or a loved one struggle on the stairs?
A
Yes. The Affordable Care Act requires everyone in America, with some exceptions, to have “minimum essential coverage” or pay the IRS an individual responsibility penalty for the period of time they were not covered. Employers and individuals are subject to this reporting requirement. For individuals, the IRS says if you and your family members all had minimal essential coverage for each month of the tax year, you simply need to indicate this on your tax return by checking a box on form 1040, 1040-A or 1040EZ. No further action is required. OPM has informed all plans in the Federal Employees Health Ben-
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Questions & Answers
NARFE at Your Service efits Program that they must file with the IRS form 1095-B statements for all enrollees and their covered dependents, and furnish a copy to enrollees.
Eligible for annuity?
Q
In January 2013, I voluntarily left federal employment after 26 years of service. I was age 53 at that time. Am I entitled to any type of retirement benefit?
A
When you left federal service, you were not eligible for an immediate retirement under either the Civil Service Retirement System or the Federal
Employees Retirement System. However, you can apply to the Office of Personnel Management (OPM) for a deferred retirement at age 62, as long as you did not take a refund of your retirement contributions after you left federal service. About five months before you turn 62, call OPM at 888-7676738 and request an application for deferred retirement. To obtain an answer to a federal benefits question, NARFE members should call 703-838-7760 and ask for the Federal Benefits Service Department; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.
NARFE service officers are available to answer questions and to assist in helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. For the nearest service officer, call NARFE (toll-free) at:
800-456-8410. NARFE Service Centers also are available in some areas. Use the Service Center listings on the NARFE website,
www. narfe.org.
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Cover Story
post-election
federal For severe threats Ahead! Advocates Brace for Assaults
Ominous clouds are gathering for the federal civilian workforce. As tough as the last decade has been for federal employees and retirees, the next two to four years likely will be far more challenging, following the results of the 2016 federal elections, knowledgeable observers say. Federal employees, retirees and their advocates will be seen as successful if they can limit adverse executive branch and congressional measures targeting federal employment size, compensation and benefits, as they have managed to do over the past several years, these experts say. At worst, and a real possibility, are legislative and executive actions that would significantly diminish federal employee and retiree benefits, reduce the size of the federal workforce, curtail civil service protections and generally make federal service a less attractive career option for many.
By David Tobenkin
ecast Alerts raised “We can’t sugarcoat it,” says U.S. Rep. Gerald E. Connolly, D-VA, a vigorous supporter of the federal community who represents a district with many federal employees and retirees. “A unified Republican government that controls both the legislative branch and the White House poses a serious threat to our federal workforce.”
Illustration by Bill Pragluski, Critical Stages, LLC
FEDERAL Forecast
A member of the House Oversight and Government Reform Committee, Connolly says that during the 114th Congress – in both the Committee and on the House floor – federal advocates had to “repeatedly fight back efforts to weaken federal employee protections, attempts to change federal employee compensation and benefits, not to mention proposed draconian cuts to federal agencies. “Thankfully, we had the Senate and the White House to thwart the worst of these efforts,” he says. “Moving forward next Congress, it is going to be a challenge. Presidentelect Trump has already signaled that he wants to cap federal employment and implement a hiring freeze. If past is prologue, those of us who consider ourselves advocates for the federal worker must be prepared for attacks on pay, benefits and workforce protections.” Robert Tobias, director of the Institute for the Study of Public Policy Implementation at American University, shares that view. “I expect a broadscale attack on civil service protections once Donald Trump is president,” says Tobias, a professor of public sector leadership. “I expect that he will join with [Speaker of the U.S. House of Representatives] Paul Ryan and other legislators who believe the solution to the country’s problems is to downsize the federal workforce.” Federal employee advocates say that if ever there was a time for federal employees and retirees to stand up and be counted through grass-roots efforts to defend their interests, it is now, as their actions may help prevent worstcase outcomes. “It’s incumbent upon federal employees and retirees, particularly those outside of Washington, DC, to emphasize what federal employees do for the country,” says NARFE Legislative Director Jessica Klement. “Congresspeople want productivity and employment in their districts, and many have considerable numbers of federal employees who live there. NARFE members need to sensitize them to what getting rid of these jobs would mean for a district’s or state’s economy. NARFE members need to be more vocal about the work they do and how it matters
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to the country through every medium possible. We must be prepared to take on any fight with which we are faced.” Klement says retired federal employees, in particular, should take note that some of their benefits, as well as those of active employees, are likely to be targeted through legislation that will have an increased chance of congressional passage and, in a Trump presidency, a greatly reduced chance of a presidential veto.
The President’s Plan for the Federal Workforce
Federal workforce and regulatory issues were featured prominently in candidate Donald J. Trump’s “Contract with the American Voter,” a 100-day action plan promising “to make America great again.” The Contract promised to institute a federal hiring freeze – with exceptions for military, public safety and public health functions – a promise that is easy to accomplish through a presidential executive order that could be signed on Trump’s first day in office. In fact, Presidents Ronald Reagan and Jimmy Carter both instituted hiring freezes, which were later rescinded. While Trump already has backed away from some campaign pledges, many sources interviewed in November and December expected this promise to be kept. On the other hand, Klement notes that the areas exempted from the hiring freeze, including defense, public health and public safety, comprise a large percentage of the federal workforce. Federal unions also point out that workforce levels at some large agencies already have been frozen or have been in decline for years. “We continue to push hard for additional staffing for the IRS,” says National Treasury Employees Union (NTEU) National President Tony Reardon. “IRS has lost more than 20,000 employees since 2010 due to budget cuts. [Customs and Border Protection] is also experiencing significant staffing shortages around the country.” Trump’s Contract also proposed that for every new federal regulation, two existing regulations must be eliminated, something that was
mentioned in about half of his election speeches, according to The New York Times, and that is within his presidential authority to mandate. Trump’s statements to date include promises to increase spending on defense, infrastructure and border control, but they also express a need for greater fiscal control, which many say would be difficult to achieve simultaneously. That has led to concern that the Trump White House could propose to cut employee benefits and resources at agencies that are not related to his priority areas. Trump the candidate appeared to have federal agency policy favorites and to be prepared to intervene in picking winners and losers among agencies. If the Department of Defense is a favorite, the Department of Education and the Environmental Protection Agency appear to be the opposite, with Trump calling for their abolition on the campaign trail. Still, many of Trump’s positions, such as those on the pay and benefits of the federal workforce, have been, and remain, unclear. Notably, Trump did not submit a candidate statement to NARFE, unlike Hillary Clinton. Critics suggest that Trump simply does not have strong opinions on many federal employment issues and may not make the key calls in his administration on federal worker issues. “Donald Trump doesn’t think about how government works – his statements don’t even comport with the Constitution,” says David Cay Johnston, a professor of regulatory law at Syracuse University and the Pulitzer Prize-winning author of The Making of Donald Trump. “Donald has said he will assign out the work of being president to someone else, and it’s pretty clear that that’s going to be Mike Pence.” Vice President-elect Pence, a former member of the U.S. House of Representatives and governor of Indiana, has a track record in the latter position of opposing public employee unions and supporting compensation reforms such as pay for performance, which was tried and abandoned at the Department of Defense. In his 12 years in the House, he had a 0 percent NARFE lifetime voting record.
Federal workforce and regulatory issues were featured prominently in candidate Donald J. Trump’s “Contract with the American Voter.” Civil Service Reforms on the Front Burner
An initial hope for federal employee advocates was that with the multitude of significant policy changes Trump proposed in his candidacy, attention to federal workforce issues might be deferred until later in his four-year term. That might allow federal employment advocates time to mitigate them or offer counterproposals. Many federal advocates concede that aspects of the civil service could use reform. The Partnership for Public Service, a body generally supportive of the federal workforce and its mission, and Booz Allen Hamilton, a major management consulting firm, jointly released a report in 2014 that called for overhauling the entire civil service system, including pay, performance management, hiring, job classification, accountability and workplace justice. However, efforts thus far have gone nowhere in the face of general legislative gridlock. But hopes to defer civil service issues have been steadily reduced by statements of Trump advisers and appointees, suggesting that major federal workforce changes could be targeted for early in his term, taking advantage of the two-year period in which the Republicans are guaranteed to control both Houses of Congress, and when they could follow the policy recommendations of Trump advisers who are zealous critics of the federal bureaucracy. Newt Gingrich, former House speaker and a member of Trump’s transition team, has in the past urged reducing the federal workforce and curtailing civil service protections. In a late November interview with The Washington Post, Gingrich emphasized the importance of civil service reform and predicted that Stephen Banw w w. n a r f e . o r g
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FEDERAL Forecast
non, former Breitbart News chief, would lead efforts to reform the federal workforce. The Post story noted that Breitbart stories have criticized the federal workforce as too large and overpaid. Many being offered senior positions in the Trump administration have no experience managing federal workers or have made statements in the past critical of the federal workforce, suggesting employees at those agencies could face a challenging work environment, says William Dougan, until recently president of the National Federation of Federal Employees (NFFE), a union. In late November, news organizations said Paul Conway would head up the “landing team” at the Office of Personnel Management (OPM) to assist with transition efforts at the agency. While Conway was chief of staff at OPM during the George W. Bush administration, he also has worked for the Heritage Foundation, a conservative Washington, DC, think tank, and led a group called Generation Opportunity, a libertarianleaning group aimed at millennials. The Heritage Foundation and Generation Opportunity have been harshly critical of the size of the federal government. The Heritage Founda-
Congressional Republicans are expected to push for legislation that many view as adverse to the federal workforce. tion, for example, in July issued a report proposing cuts of $333 billion to federal employee pay and benefits over a decade, mostly through reductions in Federal Employees Retirement System (FERS) benefits, as well as cuts in pay, in paid leave, in Federal Employees Health Benefits Program (FEHBP) payments by the government and in retiree health care. It proposed that new federal workers – those with fewer than five years’ experience – should be shifted to a defined contribution plan exclusively, which would eliminate the FERS basic annuity. 28
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Renewed Congressional Push on Workforce Issues
Independent of President Trump’s actions relating to federal workforce issues, congressional Republicans are expected to push for legislation that many employee advocates view as adverse to the federal workforce. Jason Chaffetz, R-UT, also interviewed for the late November Washington Post story, said he would seek to make it easier to fire employees who are incompetent or who break the rules, and also said he planned to push for converting from the current pension-based system for federal employees to a defined contribution, 401(k)-type set of benefits. Such positions are consistent with recent GOP budgets and party platforms. In March 2015, for example, House Republicans, through a budget resolution, introduced a variety of proposals opposed by federal employee advocates, including: cutting non-national security employees by 10 percent through attrition by filling only one out of every three vacancies; requiring federal employees to contribute an equal amount to their pensions as do agencies, an effective pay cut of roughly 6 percent; phasing out the pension component of the employee retirement package altogether, as well as eliminating the FERS annuity supplement, which substitutes for Social Security benefits for young retirees; reducing the return on the government securities in the Thrift Savings Plan (TSP) G Fund; and basing the government’s share of FEHBP premiums for retirees on inflation, rather than the average cost of the plan. The Republican Platform 2016 also called for easier disciplining and dismissals of problematic federal employees and for an end to union activities on federal time. It also criticized employee pay and benefits as excessive compared to the private sector and urged Congress to bring federal compensation and benefits “in line with the standards of most American employees.” Many individual pieces of legislation relating to these themes and proposals have been introduced in the House in recent years but failed to be passed by Congress in
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FEDERAL Forecast
the face of opposition in the Senate and a likely veto by President Obama. Many expect similar legislation to be introduced in 2017, when the bills will not face a potential veto by the Obama administration. Some major incremental, though piecemeal, reforms to the civil service already have taken place or are underway, including legislation that greatly reduced the civil service protections of Department of Veterans Affairs (VA) managers following scandals relating to waits for medical care at the agency’s hospitals. That legislation passed with bipartisan support, including that of President Obama. Obama subsequently suspended enforcement of the so-called 2014 Choice Act, and a lawsuit by a dismissed VA executive challenging the constitutionality of the legislation is before a federal appellate court.
Federal Advocate Reactions
Federal employee advocates have a mixed response to these developments. They emphasize professionalism in executing the policy choices of their congressional and executive branch bosses, some in hopes that communication and education can dissuade budget hawks from taking extreme policy actions that would impair federal government functions and services. Some point out, for example, that hiring freezes at the Internal Revenue Service (IRS) and the Social Security Administration (SSA) have harmed customer service at both agencies. The Government Accountability Office (GAO), an independent watchdog, has noted in a variety of reports the importance of maintaining a robust federal workforce to meet the nation’s challenges. A 1982 GAO audit, for example, found that the Reagan and Carter federal hiring freezes did not save the government money. And many note that curbing civil service protections could reintroduce the kind of politicized and unprofessional “spoils system” workforce that led to the adoption of civil service protections in the first place. “The problems that federal agencies are called upon to address are often critical and
complex,” says NTEU’s Reardon. “We need a workforce that is talented, well-trained and [that has] the tools and resources necessary to be as effective as possible. NTEU will fight to ensure that policies to enhance recruiting, retaining and rewarding such talented employees will be supported by Congress and the administration. And we will oppose any efforts to harm the federal workforce.” Federal employee advocates also will seek to marshal the best numbers they can to demonstrate federal employee compensation is reasonable compared to equivalent private-sector compensation, adding to what is already a raging debate with competing studies on that subject. And there are some factors that are potentially favorable for the federal community. For example, an influencing factor on a legislator’s positions, regardless of party, is how many federal employees and retirees live in their district or, in the case of senators, state. Some Republican legislators defected to oppose some of the more extreme legislative measures directed at the federal workforce in the past several years. On the other hand, some Democrats supported, and the president signed into law, bills that eased the termination of VA leaders and that increased employee contributions to the FERS retirement plan for newer employees. The House is generally viewed as less friendly to federal employees and retirees than the Senate, a body whose more powerful members with their longer terms more frequently vote their beliefs, rather than the party line. A narrowed Republican majority in that body after the 2016 elections, now 52 Republicans to 48 Democrats (including two Independents who caucus with the Democrats), means that for legislation that splits along partisan lines, a smaller number of Republican defectors could block legislation that would otherwise pass. “I think there is hope that the Senate can block the worst of the legislation,” Dougan says. In addition, a Senate filibuster may prove to be the hope to prevent such action. Filibusters
occur when a party refuses to yield the floor and allow a matter to come up to a vote. And there also is tradition: The federal civil service has survived for 133 years, including past periods of single-party dominance of federal government. Still, a note of caution is in order. Reforms to previously politically untouchable benefits programs appear to be on the table, from what appears to be an assertive Republican policy-change agenda. House Speaker Ryan, for example, has proposed reforming Medicare into a private system and has hinted that the Social Security benefit structure could be re-examined. If legislation on such reforms proceeds, federal employees and retirees could find themselves fighting with much larger constituencies for scarce activism and policy agenda space among their legislative supporters, NARFE’s Klement notes. There are, for example, roughly five million federal employees and annuitants and their spouses and survivors, compared to 55 million Medicare beneficiaries in 2015, according to the U.S. Centers for Medicare & Medicaid Services. A last resort may be the courts. “I expect an uptick in the number of proposed removals and other adverse actions against federal employees,” says John Mahoney, an attorney who has represented federal employees in a range of actions and is a former administrative law judge. “The narrative that has been sold to the electorate is that there is a lot of dead weight and bad performers in federal government who should be made to go away. I am concerned that there will be a major push to get rid of as many federal employees as possible, though I hope my fears don’t come to fruition.” Under current federal law, federal employees are entitled to protections that include written notice of a proposed removal, 7-14 days to reply in writing, and a written decision effective date 30 days after the proposal. Employees also enjoy statutory appeals rights. Mahoney says he is concerned that if civil service protections are statutorily repealed, the process for adverse
actions could default to the minimal standard that the Supreme Court said in its 1985 decision, Cleveland Board of Education v. Loudermill, constitutes due process: advance written notice and an opportunity to respond. In practice, he says, this would be little better than at-will employment. Federal employee advocates and their attorneys will need to resort to the courts to seek to challenge unconstitutional legislative actions by the federal government, wherever possible, he says.
Developments in the next few months will likely start to define the scope of the challenge for federal employees, retirees and their advocates. Next Shoes to Drop
Developments in the next few months will likely start to define the scope of the challenge for federal employees, retirees and their advocates. The continuing resolution, the short-term funding measure that is keeping the government operating in fiscal year (FY) 2017, will expire in late April. And the Trump administration’s first federal budget, for FY 2018, will be due early this year. Funding proposals for different agencies will speak volumes as to the administration’s plans for the federal bureaucracy, American University’s Tobias notes. Other developments include continuing picks by Trump for Cabinet and agency positions, including the Office of Management and Budget and OPM, which exert a strong hand over federal workforce policy. Federal employee advocates also hope the next two years will be free of major, high-profile civil service controversies, as crises or scandals, or the appearance thereof, have been a catalyst for civil service change in recent years. —David Tobenkin is a freelance writer based in the greater Washington, DC, area. w w w. n a r f e . o r g
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Estate
planning for
Federal Employees As an estate planning attorney, I spend a
lot of time talking about estate planning with people with particular issues, un– usual situations or unlikely, but important, tax concerns. But everyone should know the estate planning basics. In addition, federal employees need to consider the impact of their annuity, Thrift Savings Plan (TSP) account and other designated assets in considering how best to take care of their families. This Valentine’s Day, consider making an estate plan your gift to your loved ones. In providing estate planning seminars to federal employees over the past 20 years, or in meeting my federal employee and retiree clients for a consultation, couples often say to me: “We don’t need to do estate planning, since if something happens to me, (he/she) will get everything and be in charge of everything.” While I am sure that is a comforting thought, it is just not true. Your spouse is not automatically your legal representative, your health care agent or your sole heir. It is necessary to have documentation that establishes your spouse, or significant other, as the person who will make the necessary decisions for you during your life, administer things after your death and have the benefit of what you want them to have for the rest of their lives. Estate planning for couples, married or not, covers several areas: ● Designating someone to make health care decisions during your lifetime;
By Marc S. Levine, Esq. 32
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Taking Care of Each Other
Estate planning ● Designating someone to make legal and financial decisions during your lifetime; ● Providing a clear process for someone to deal with the administrative and bureaucratic issues that arise after your death (including through probate, trust or direct payment); ● Ensuring that your spouse receives, outright or through trust, the benefit of your joint assets for his or her remaining life; and ● Maximizing estate tax savings.
Lifetime Decision-Making
Although it is true that family members and health care providers often will defer to a spouse to make health care decisions, your spouse is not your automatic and final health care agent. If parents, siblings, children or friends step up to say that what your spouse says you want, is not, in fact, what you want, your spouse can find himself or herself in court, trying to prove, as a matter of fact (not as a matter of law), that your wishes are being carried out. Doing a written health care directive allows you to put your spouse in the position to make decisions for you, or to simply follow through on decisions you already made. Interestingly, it does not matter what your “health care” document is called. The fact is, there is no difference between a properly drafted document called a “Living Will” or “Health Care Directive” or “Advance Medical Directive” or “Health Care Power of Attorney” or even “Health Care Proxy.” Different states, hospital systems and websites have different names for the same documents. But don’t be confused; they all do the same thing, if created correctly. This also is a gift to your children or other loved ones, who do not have to wonder if they made the right choice and can focus on the fact that they are carrying out your choices. The same issues apply to legal and financial decisions. It comes as a surprise to many that their spouse is not their legal representative. Your spouse cannot sign a contract or tax return on your behalf or get access to many of your benefits, including your federal employee benefits, simply because they are your spouse. Many entities require a spouse, if no appropriate power of attorney exists, to apply to a court to name a guardian or conservator of your 34
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property, and sometimes the court will name someone other than your spouse to that role. Naming your spouse as the “agent” or “attorneyin-fact” under your power of attorney allows them to be your legal and financial agent. You can name your spouse as an immediate agent, meaning they act as your agent from the moment the document is signed. Some people opt instead for a springing power of attorney, where your agent has power only after two doctors determine you are no longer able to make competent financial and legal decisions for yourself. In addition, all powers of attorney end at death. If you are someone’s agent and they die, you no longer can do anything based on that power. Powers of attorney are not always effective for some government agencies or government benefits. There are a number of federal government issues for which a power of attorney will not work, including dealing with the Social Security Administration and the U.S. Department of Veterans Affairs, or with Federal Employees’ Group Life Insurance (FEGLI) and U.S. Savings Bonds. It is worth including specific language to try and bring your federal benefits within the scope of your power of attorney. With regard to the TSP, particularly, there is a separate power of attorney form. You can either use that form (which I generally suggest for my clients) or you can incorporate the language of the form into a more general power of attorney, something I also now suggest. The form can be found at www.tsp.gov/PDF/ formspubs/oc01-10.pdf.
Who Is in Charge? After-Death Decision-Making
Since all powers of attorney and health care directives end at death, control of your assets and “legal” life (taxes, creditors, debts, etc.) falls to the court if you have not made other plans. The court then usually will appoint a family member as your executor, if your family member applies. In these cases, the executor often is left with no information and no idea how to move forward. Wills and trusts, as discussed below, are often used to give that power to your family in a more efficient way.
Who Inherits What and How?
Non-Probate Transfers Often, there is confusion as to what a spouse inherits if there is no will or other planning done. If there is no will or other planning, but all assets are either joint or directed by a beneficiary designation to the surviving spouse, the spouse gets those assets. But if you have separately titled assets, then whether your spouse inherits all of your assets, or just some, depends on where you live, and the only way to ensure your spouse will inherit all of your assets is to name your spouse as the recipient under your will or revocable living trust. Property that is designated as joint ownership with a spouse (or anyone) or designated as tenants-by-the-entireties (but not tenantsin-common) passes pursuant to the property’s titling and not under a will. Look for assets that have “JWROS” (joint with right of survivorship), “JTWROS”(joint tenants with right of survivorship), “joint tenants” or “TBE” (tenants by entirety) next to the owners’ names. Remember that with multiple-party accounts, banks (and the law) presume such accounts are jointly owned. However, tenants-in-common ownership (sometimes designated as “TIC”) is concurrent ownership of property with no right of survivorship. There often are significant unintended consequences to joint ownership. If I own a house jointly with right of survivorship with my sister, my sister gets 100 percent of the house upon my death, even where my valid will says to give my interest in the house to my wife. The titling of the house overrides the will. If I own that house as 50/50 tenants-in-common with my sister, then at my death, if my will says to give it to my wife, she gets my 50 percent and goes on to own it with my sister. For federal employees and retirees, beneficiary designations often transfer a large portion of their estates at death. The TSP, Civil Service Retirement System (CSRS); Federal Employees Retirement System (FERS); Foreign Service Retirement System (FSRS); FEGLI; and, if you are still working, unpaid compensation and accrued leave (form SF 1152) all pass by beneficiary designation and not under a will. Where a will and beneficiary designation conflict, the
beneficiary designation will control the distribution of assets. In most instances, the benefit will be paid to the person(s) listed as the primary beneficiary – whether or not they are an “appropriate” recipient either because of their age, competency or a change in relationship to the decedent. The consequences of not having a designation, or in not thinking through your designation, is that the benefit will flow outside of your control or your intentions. If it is a government benefit, it will go according to the government’s “order of precedence.” Non-government benefits often have an order of precedence, as well, bypassing your will, trust and probate, although often sending the asset directly to your estate and to probate anyway. For example, if you name your spouse to receive your FEGLI benefit in your will, but your FEGLI beneficiary form listed your siblings, your siblings will get the benefit, not your spouse. Minor beneficiaries listed on the forms always will inherit no later than age 21, even when you might prefer their assets go into a trust to be distributed to them, or for their benefit, at some later time.
your spouse is not
automatically your legal representative, your health care agent or or your sole heir.
Probate Transfers Probate, something often feared (rightly and wrongly), is basically the court-supervised process that identifies what “probate” assets you owned at your death and oversees distribution of those assets according to your wishes as communicated in your will or by state law if you die without a valid will (intestacy). A will does not create or avoid probate. Having assets specifically designated in a will does not mean they are not subject to the probate process. If you say in your will that Uncle Mike gets your watch, it does not mean that the watch does not go through probate. It just means that when probate is done, Uncle Mike will get the watch. Probate deals only with probate assets, which are those assets titled in the decedent’s name that do not pass through direct transfers, benw w w. n a r fe . o r g
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Estate planning eficiary designations, joint ownership or trusts. Going through probate does not mean assets go to your spouse automatically. As noted earlier, each state may have different rules about what happens to probate assets if there is no will. Using Maryland, the District of Columbia and Virginia as examples: In Maryland, a married person with two children and without a will, has his or her separate probate assets divided essentially one-half to the surviving spouse and one-half equally to his or her children, outright if they are adults (18) or under a guardianship of the property if they are minors. In Virginia, a surviving spouse gets everything, and “common” children get nothing. If there is a child from a different relationship, the surviving spouse gets only one-third, and the children split the other two-thirds. In the District of Columbia, the surviving spouse gets two-thirds, and the children one-third if the children are “common” children; or the spouse gets one-half and the children the other half if the children are not all “common” between the spouses. With a will, you can ensure that your estate passes to your loved ones as intended.
Revocable Trust Transfer
A popular, and sometimes oversold, way that you can ensure that your loved ones are cared for at death, and to avoid probate, is to create a revocable living trust (RLT). To be effective to transfer assets at death, the RLT document must be created (drafted, signed, etc.) during your lifetime. The creator of the RLT is always the grantor (sometimes called the settlor), is usually the trustee (the person who administers the RLT) and is always the beneficiary (the person who benefits from the RLT). The RLT may have other beneficiaries and will always have a provision for a successor trustee to take over if the grantor/trustee is unable to act as trustee. Testamentary provisions (those that say who gets what at your death), like those set out in your will, are contained in the RLT agreement. The same people, or trusts, can get the same assets, controlled by the same people, as you might otherwise set up in a will. However, in order to be effective, the RLT must be funded and assets that would otherwise be considered as “probate” assets must be transferred into 36
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the RLT during your lifetime. A major flaw in many RLT-based estate plans is the failure to transfer all eligible assets to the RLT, resulting in an estate that is half probate and half RLT.
Estate Taxes
If the value of your estate and your spouse’s estate total more than the estate tax (state or federal) exemption in place at the time of your death, planning is necessary to minimize the total estate taxes that your estate will pay at the death of the second spouse. Although far more complicated in second (or third, fourth, etc.) marriages, it is easy to avoid all estate taxes at the death of the first spouse, simply by leaving everything outright to the other spouse. In addition, current federal law allows for “portability” of the exemption. At the death of the first spouse, the surviving spouse may “claim” the deceased spouse’s unused federal (but not state) estate tax exemption for use at his/her own death if, at the first spouse’s death, a federal estate tax return is filed, even if otherwise unnecessary. On the state level, leaving everything outright to your spouse could mean that you have missed an opportunity to perhaps double your estate tax exemption by using trusts at the first death. If you and your spouse together have more than the state estate tax exemption (and those range from $675,000 exemptions to $5.49 million exemptions) you need to do planning to minimize taxes at the second death. Although there is an increasing likelihood that the federal estate tax will be repealed or altered, there still may be very significant state estate tax and inheritance tax issues, and new capital gains taxes dealing with the loss or reduction of the “step up” in basis rules, when the federal estate tax is repealed. We all need to do at least the basic planning. With a health care directive, power of attorney, will, beneficiary forms, joint ownership and sometimes a revocable trust, you can ensure that your loved ones have the tools to help you during your life and to guide them in what needs to be done when you are gone. — Marc S. Levine is a partner in Handler & Levine, llc, a Bethesda, MD, firm concentrating in estate planning.
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Bella Italia Tour 11 days from $1,549* now $1,449* Travel the beautiful country of Italy, starting in historic Rome. Spend a full day sightseeing, including the Colosseum. Tour the Vatican City, then travel north to Orvieto and Montecatini Terme. Continue to Pisa, famous for the Leaning Tower and Florence. Drive northeast to Bologna and then Venice, the city of romance and canals. Next is Verona, gazing at Lake Garda and a scenic cruise on magnificent Lake Maggiore. Your tour concludes in Milan with included sightseeing. Departs May – September 2017.
12 days from $3,198* now just $1,599*
Save
200
$
Save
200
$
per couple*
per couple*
Canadian Rockies Tour 14 days from $1,799* now $1,699*
Autumn Leaves Tour
Discover the inspiring scenery of the Canadian Rockies and pristine environment in Alaska. Begin in Calgary and travel north to Bow Falls, Banff National Park and see breathtaking Lake Louise. Journey along the Icefields Parkway to Jasper National Park and experience a glacier excursion. Continue to Kamloops, Vancouver and Seattle where you’ll board Norwegian Cruise Line’s Jewel. Sail through the Inside Passage to Ketchikan, Juneau, Skagway and Victoria, BC. Departs June – September 2017.
Travel through the historic Northeast while taking in the beautiful change of seasons starting in Philadelphia and Gettysburg. Cross the border into Canada and spend two nights in awe-inspiring Niagara Falls, visit Kingston and enjoy a scenic cruise though the 1000 Islands. Back in the U.S., continue through the Adirondack region, stop in Lake Placid and observe the scenery of the Green and White Mountains before arriving in Boston. Complete your tour with included sightseeing in Cape Cod, Newport and New York City. Departs September & October 2017.
14 days from $1,599* now $1,499*
*Prices are per person, double occupancy and do not include taxes & government fees which range from $159 to $299 depending on the tour selected. Ocean cruise tour pricing based on Inside Cabin, upgrades are available, as is add-on airfare. Free beverage package or internet with Ocean view or balcony only, service fee payable on beverage package. Maximum savings based on high season departure date and balcony cabin. All special offers apply to new bookings only made by 3/31/17 and are subject to availability. Seasonal surcharges and single supplements apply. Additional terms and conditions apply, visit ymtvacations.com/setsailoffers or ask your Travel Consultant for details.
CALL NOW: 1-877-783-1619
ymtvacations.com
Mention promo code M6009
Managing Money
Don’t pass on making a 2016 IRA contribution
T
ax season is upon us once again. As you are scrambling around, gathering the documentation necessary to prepare your tax return, now is the
perfect time to make sure you’re taking advantage of every tax-savings opportunity you have. And one of the few opportunities we’re afforded is the ability to contribute to tax-advantaged retirement plans. Even if you’re participating in the Thrift Savings Plan (TSP) or a 401(k), you’re still permitted to contribute to a traditional or Roth individual retirement account (IRA), subject to certain income limits. If you have the cash flow, or the cash sitting in a nonretirement account, don’t pass up the opportunity to make an IRA contribution. Generally, as long as you have taxable compensation, you may make an IRA contribution. According to the IRS, taxable compensation is generally what you earn from working, such as wages, commissions, selfemployment income and nontaxable combat pay. It also includes alimony, but it doesn’t include income from investments, Social Security or pensions. If you don’t have taxable compensation, but are married to someone who does, take note: The IRS permits you to contribute to a spousal IRA if you file a joint return, even if you don’t have taxable compensation, but your spouse does.
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Don’t fret if you didn’t make your 2016 IRA contribution because you have until your tax return filing deadline (not including extensions) to make an IRA contribution. For example, you can make 2016 IRA contributions until April 18, 2017. Contribution limits apply to both traditional and Roth IRAs. For 2016 and 2017, contributions are limited to $5,500 ($6,500 if you’re age 50 and older) or your taxable compensation, if less. This limit applies to all IRA contributions an individual may make in a single tax year. For example, if you have both a traditional IRA and a Roth IRA, it’s possible to contribute to both in the same tax year, but your total contribution to all IRAs is still limited to $5,500 ($6,500 if age 50 or older). Although the same general contribution limits apply to both Roth and traditional IRAs, Roth IRA contributions may be limited if your income exceeds certain thresholds.
By Mark A. Keen
CFP®
For example, for 2016, a full contribution is permitted if Adjusted Gross Income (AGI) falls below $117,000 for single filers and $184,000 for joint filers. A reduced contribution may be made if income exceeds these limits, but once income reaches $132,000 for single filers and $194,000 for joint filers, no Roth IRA contributions may be made. The 2017 limits are $118,000 to $133,000 for single filers and $186,000 to $196,000 for joint filers. Traditional IRA contributions aren’t limited based on income, but if you, or your spouse if married, are covered by an employer-based retirement plan, the amount of the contribution you may claim as a tax deduction is. For example, if you are single and are covered by an employer’s plan, you’ll be able to take a full deduction only if your AGI is below $61,000 for 2016 and $62,000 for 2017. You’ll be allowed to take a partial deduction until your income reaches $71,000 for 2016 and $72,000 for 2017, after which no deduction will be allowed. If you file a joint return and you are covered by an employer-based retirement plan, the tax deduction for your contribution will be phased out between $98,000 and $118,000 for 2016 and between $99,000 and
BENEFITS RESOURCES NARFE offers members a wide range of information on federal benefits. Visit www. narfe.org/federalbenefits and www.narfe.org/ FederalBenefitsInstitute.
$119,000 for 2017. If you file a joint return and you are not covered by an employer-based retirement plan, but your spouse is, the tax deduction for your contribution will be phased out between $184,000 and $194,000, which applies for both 2016 and 2017. The key word is “covered.” You’re covered if you have the option to participate in your employer’s retirement plan, regardless of whether you do.
Once you reach the year you turn age 70 ½, you no longer can contribute to a traditional IRA. You can, however, continue to contribute to a Roth IRA if you have taxable compensation and meet the income limits. Bear in mind, this applies to contributions only. You still may make rollover contributions from an employer-based retirement plan to a traditional or Roth IRA, regardless of your age. It’s hard enough earning a return on your savings. As you prepare your tax return this year, don’t pass on the tax-advantaged opportunity a traditional or Roth IRA contribution will provide. You still have time to act. Mark A. Keen, CFP®, is partner, Keen & Pocock, 10300 Eaton place, Fairfax, VA, and an investment adviser representative and registered principal of The Strategic Financial Alliance, Inc. (SFA). Securities and advisory services are offered through SFA. Email: mkeen@keenpocock.com.
Your Benefits Simplified in the NARFE Federal Benefits Institute Live and on-demand presentations and resources offer dependable guidance on the confusing issues surrounding federal benefits and retirement.
New Webinar!
ONLINE NOW! READY-TO-VIEW PRESENTATIONS TSP: Love It or Leave It February 23, 2 p.m. ET
Pre- and Post-Retirement Planning
Presented by Tammy Flanagan, nationally recognized federal benefits expert and narfe magazine contributor.
Financial Planning for Feds
NARFE Federal Benefits Institute Resources are FREE to NARFE Members. Join NARFE today to access these resources and more! narfe.org/join
NARFE Federal Benefits Institute
How Much Money Do You Need To Retire? Post-Retirement Checkup What’s YOUR Best Retirement Date? Exploring TSP Withdrawal Options Claiming Social Security Will You Be Ready For Retirement?
Managing Your Health Benefits Alphabet Soup of Health Plans FEHBP and Medicare
www.NARFE.org/Institute
w w w. n a r f e . o r g
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The Informed Citizen
Statehouse visits; Playing offense
O
n February 1, 44 state legislatures will meet in regular session. Visiting your statehouse while the legislature is in session provides a special insight into the legislative process. Go alone, as part of a NARFE group or join other advocacy groups. When visiting alone or with others, bring a camera or smartphone and take photos – and be sure to send us copies. Members of the NARFE Indiana Federation (pictured below) converged on the Indiana Statehouse in Indianapolis during the 2015 “Fairness Now” campaign for federal retirees. Indiana Federation President Don Savage led NARFE groups to the Capitol twice during the effort that won tax parity for Civil Service Retirement System (CSRS) annuitants – providing a state income tax exemption similar to that for Social Security beneficiaries. The CSRS provision was part of a larger tax bill that became law when signed by (then) Governor Mike Pence. Actions Available from Home Governors are the major figure in state government. All but two (New Hampshire and Vermont)
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serve four-year terms. All but one (Virginia) can serve consecutive terms. They usually set the legislative agenda and announce it in their State of the State Address. Like the State of the Union, these speeches are delivered before the legislature and often covered live by public television and C-SPAN and streamed on the governor’s website. Each of these outlets will archive the address, making it available to viewers at any time. Keep in mind that two states (New Jersey and Virginia) will elect new governors in 2017. Thirty-six states will have gubernatorial elections in 2018. Invite state legislators to speak to your chapter and have them answer NARFE questions. Meeting legislators can be helpful im-
By Christopher Farrell Senior Analyst
mediately or far down the road because half the members of the last Congress – both House and Senate – had served in their state legislature or as governor or both. New Jersey Federation Part of Successful 2016 Coalition In 2016, NARFE’s New Jersey Federation worked with other seniors’ organizations on tax law changes to stem the outflow of seniors to more hospitable tax venues. As part of a massive gas, sales, income and estate tax measure, New Jersey seniors obtained a bigger exclusion for pension and retirement income. The income tax exclusion – how much you have to make before the tax kicks in – gradually will increase to $100,000 for joint filers, $75,000 for individuals and $50,000 for married couples filing separately. State Advocacy Resources • C-SPAN: www.c-span.org has a search feature where you can enter your governor’s name and find all his or her State of the State Addresses. • The National Governors Association: www.nga.org has profiles and key staff listings. • Open States: www. OpenStates.org has district maps and listings of legislators. • MultiState: www.multistate. com provides listings of regular and special session dates.
NARFE’s Dues Withholding Program What is dues withholding? It is a dues-payment method that gives NARFE members (retirees) the option of having their annual NARFE membership dues deducted from their annuities on a monthly basis. 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: (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 800-627-3394. Retirees, spouses of retirees and annuitant survivors are eligible for dues withholding.
NARFE Dues Withholding Application for Retirees YES. I want to enroll in NARFE’s Dues Withholding Program (Annual NARFE dues of $34 and, if applicable, Chapter dues of record to be withheld annually.) Social Security Number (9-digit number)
– Mr.
Mrs.
Civil Service Annuity Number
– Miss
C S
Ms.
–
–
–
(Include prefix, CSA or CSF) (Include any applicable suffix)
Full Name ______________________________________
NARFE MEMBERSHIP INFORMATION
Street Address __________________________________
NARFE Membership ID ____________________________________
Apt./Unit _______________________________________
NARFE Chapter # (If applicable) _______________________________
City _________________________ State _____ ZIP _____ Phone (__________) ______________________________ Email __________________________________________ Date of Birth _________ /_________ / ____________________ dd
mm
yyyy
YES. I Also Authorize My (NARFE Member) Spouse’s Dues To Be Withheld From My Annuity. (Additional annual dues of $34 and, if applicable, chapter dues to be withheld annually.) If YES, enter spouse’s information below. Spouse’s Name ___________________________________________ ________________________________________________________ Spouse’s Membership ID ___________________________________
AUTHORIZATION (Withholding will begin in 60-90 days). No payment should be forwarded with 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 above: 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
Date
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 Records, 606 N. Washington St., Alexandria, VA 22314-1914 www.narfe.org 800-627-3394 rr@narfe.org Do not send money with this form
DW-2 (11/16)
2016
G FUND
F FUND
C FUND
S FUND
I FUND
December
0.20%
0.16%
1.98%
1.81%
3.44%
November
0.16%
-2.35%
3.71%
7.95%
-1.99%
October
0.14%
-0.74%
-1.82%
-3.86%
-2.03%
YTD
1.82%
2.91%
12.01%
16.35%
2.10%
1 year
1.82%
2.91%
12.01%
16.35%
2.10%
3 year*
2.06%
3.49%
8.95%
6.78%
-1.27%
5 year*
1.91%
2.59%
14.73%
14.84%
6.87%
10 year*
2.63%
4.59%
7.00%
8.13%
1.02%
L INCOME
L 2020
L 2030
L 2040
L 2050
December
0.64%
1.13%
1.59%
1.82%
2.04%
November
0.49%
1.05%
1.57%
1.87%
2.19%
-0.38%
-0.91%
-1.39%
-1.66%
-1.89%
YTD
3.58%
5.47%
7.07%
7.90%
8.65%
1 Year
3.58%
5.47%
7.07%
7.90%
8.65%
3 year*
3.06%
3.94%
4.58%
4.91%
5.10%
5 year*
4.18%
7.55%
9.13%
10.21%
11.16%
10 year*
3.73%
4.62%
5.14%
5.37%
N/A
2016
*Annualized
October
*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 2015
2016
For the Record
All Funds record gains in December as trends continue
Thrift savings Plan fund returns
Claims Received
November December JanUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST September OctOBER November
6,019 4,753 15,423 11,293 5,741 7,241 7,210 5,929 9,238 6,818 6,946 7,326 5,065
Inventory Avg # of Days (Steady State % Processed in to Process Case in is 13,000) 60 Days or Less (FYTD) More Than 60 Days
12,562 11,399 19,761 22,692 19,211 14,517 14,035 13,529 15,562 16,334 15,146 16,677 16,019
76% 78% 79% 80% 82% 80% 80% 79% 79% 78% 77% 58% 60%
98 104 94 96 118 92 103 115 110 112 100 91 94
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/. Source: OPM 42
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Recent trends in equity and interest rate markets mostly remained in place in the United States during December on hopes for better economic growth. The C and S Funds were higher again, while the F Fund also managed to achieve a very small gain in spite of higher Treasury yields and the Federal Reserve’s first target rate increase in a year. Continued dollar strength wasn’t enough to offset the improvement in foreign developed-country markets, allowing the I Fund to deliver positive results. The Lifecycle Funds also generated gains for the month. —BY Sean McCaffrey, Acting Chief Investment Officer, Thrift Savings Plan
countdown to cola
T
he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.2 percent in November 2016. To calculate the 2018 cost-of-living adjustment (COLA), the indices of July, August and September 2017 will be averaged and compared with the 2016 third-quarter average of 235.057. The percentage increase, if any, determines the COLA. November’s index, 235.215, is up 0.06 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. November’s index is 1.9 percent higher than the December 2015 base index of 230.791. 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 235.057.
October 2016
235.732
+0.10
+0.29
November
235.215
-0.20
+0.06
December January 2017 February March April May June July August September
Donate to NARFE Programs Support Alzheimer’s Research
Your charitable contribution is tax-deductible to the fullest extent allowed by law.
Write your chapter number on check; make it payable to: NARFE-Alzheimer’s Research
Enclosed is my NARFE-Alzheimer’s contribution: $ Every cent that is contributed is used for research. Please circle: Mr. Mrs. Miss Ms. and mail to: Name: Alzheimer’s Association Address: 225 N. Michigan Ave., 17th Floor City: State: ZIP: Chicago, IL 60601-7633 Chapter Number: Credit Card Information: MasterCard VISA NARFE members contributed for If you have any questions, write to: Discover AMEX Alzheimer’s research: $12 Million Fund National Committee Chair Card Number: Merv Stuckey, 2272 E. Buster Mountain Dr. Expiration Date: (mm)/ (yy) Oro Valley, AZ 85755-4709 *Total as of November 30, 2016 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) Email: narferoadrunner@comcast.net
$12,033,911* Alzheimer’s research.
Signature
Join the Silver CIrcle Clip this contribution form and mail to: NARFE Silver Circle, 606 N. Washington St. Alexandria, VA 22314
•For a contribution of $25 or more, you will receive a Silver Circle pin, and your name will be listed in narfe magazine with other contributors. •For a contribution of $1,000 or more, your name will be placed on the “Wall of Fame” at NARFE Headquarters.
YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.
/
Enclosed is my Silver Circle contribution: $ ID # (ID # may be found on your narfe magazine label or your NARFE membership card)
Name: Address: City: State: ZIP: Silver Circle contributions are NOT deductible for federal income tax purposes.
Installment Plan Wall of Fame 12-month installment plan
Give to the Scholarship and Disaster Funds
Please mail coupon and check to: FEEA 1641 Prince St. Alexandria, VA 22314
/
All donations go to the NARFE General Fund to support NARFE programs and operations.
My check is enclosed
(Please make check payable to NARFE Silver Circle.)
Please charge my credit card Card type MasterCard VISA Discover AMEX Card Number: Expiration Date: (mm)/ (yy) Name: (please print)
Signature
Make check payable to: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund.
Date
YES!
Date
/
/
I would like to help with my contribution.
Please check appropriate box(es). To make credit card contributions, call 800-338-0755. Scholarships are available to children, grandchildren and great-grandchildren of federal civilian retirees and current federal employees who are NARFE members. NARFE-FEEA Disaster Fund
Amount: $
NARFE-FEEA Scholarship Fund
Amount: $
Name: Address: City: State: ZIP:
NARFE News
scholarship News
Hey, shutterbug!
F
or your to-do list: Enter the 2017 NARFE Photo Contest. Deadline for this year’s contest is April 15. Winning entries will be used in the NARFE 2017-2018 Calendar and 2017 note card collection. The theme for this year’s contest is “American Dream.” All NARFE members may submit a photo, whether or not they’ve already had a photo appear in past calendars. The only exception is that members who work as professional
photographers are not eligible. Photos must be horizontal in format and 8” x 10” or 8 ½” x 11” in size. Each member is limited to five photos. (No photos of children or pets, please.) Each entrant must put the following information on a piece of paper and tape it to the back of each photo: photo title; entrant’s name, address, chapter number (if applicable), email address and phone number. Submitted photos
Changes are coming to the NARFE Scholarship Program. The application form, which traditionally has run in the February issue of narfe magazine, does not appear in this issue. The application process is going online. Look for details in the March issue and on the NARFE website, www.narfe.org (go to “About NARFE” at the top of the page and click on “Scholarship Program” in the drop-down menu). Application deadline is April 28.
will not be returned. Photos must be mailed to: NARFE Photo Contest, Attn: M. Williams, NARFE, 606 N. Washington St., Alexandria, VA. (Photos sent by email will not be accepted. No Polaroids.) Photos will be judged and winners notified by the end of June. For more information, go to www.narfe.org, log in and click on Special Programs on the left side of the members-only home page.
NARFE KEEPS THE CONVERSATION GOING
A
re you taking advantage of all of NARFE’s channels of communication? Every member of NARFE receives a copy of narfe magazine in the mail each month, of course. And if you have an email address on file, you receive the Association’s weekly electronic news digest,
Silver circle Donors Update As of December 15, 2016, NARFE’s Silver Circle donation program stood at $142,280. The program gives members a vehicle to donate to the Association beyond the norm.
44
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NARFE NewsWatch, in your inbox every Tuesday. But did you know that NARFE keeps the conversation going on Facebook and Twitter? • On Facebook, NARFE can be found
at NARFE National Headquarters. • NARFE’s Twitter handle is @narfehq. Don’t miss out on important breaking news from NARFE Headquarters. Like us on Facebook and follow us on Twitter to keep informed every day.
Donors of $25 or more are listed in narfe magazine and receive a Silver Circle pin. Donors of a total of $1,000 or more have their names engraved on the Wall of Fame at NARFE Headquarters. Donors from August 16-December 15, 2016, are listed here with their chapter numbers, if applicable. California: Willie Felton, 706.
Florida: Katherine S. Graziose, 1002. Georgia: Donald Walton. Illinois: Harry A. Poffenbarger, 655. Maryland: John B. Johnston, 258. Pennsylvania: William F. Massi, 114; Thomas C. Dilger, 458. Texas: Bernice R. Gullett; Jo Ann Wiese, 229. Virginia: Margaret M. Seigle, 2343. Washington: Larry G. Ludwig, 1247.
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 the National Active and Retired Federal Employees Association? If your future security is tied to federal retirement benefits – federal retirees, current employees, spouses and individual survivors – you should join NARFE.
NARFE MEMBER BENEFITS
• Get monthly issues of narfe magazine with news and insights for the federal community. • Access the NARFE Federal Benefits Institute for powerful resources to help you fully understand and manage your benefits. • Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits. • Visit the Member Perks page for a full listing of the many time-, money- and hassle-saving benefits available only to NARFE members.
NARFE MEMBERSHIP APPLIC ATION q YES. I want to join NARFE for the low annual dues of $40. q Mr. q Mrs. q Miss q Ms.
____________________________________________________
Full Name
____________________________________________________
Street Address
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
q VISA q Discover
q AMEX
________________________________________________ Card No. Expiration Date _____ /_________
____________________________________________________
Apt./Unit
____________________________________________________
City
State
ZIP
____________________________________________________
Phone
____________________________________________________
I am a (check all that apply) q Active Federal Employee q Active Federal Employee Spouse q Annuitant
1Q6
q Annuitant Spouse q Survivor Annuitant
q Please enroll my spouse _______________________________________________
Spouse’s Full Name
_______________________________________________ Spouse’s Email
THREE EASY WAYS TO JOIN 1. Complete this application and mail with your payment to NARFE / Member Records / 606 N. Washington St. / Alexandria, VA 22314-1914
2. Join online at www.narfe.org. 3. Call 800-627-3394, Monday through Friday, 8 a.m. to 5 p.m. ET.
mm
yyyy
________________________________________________ Name on Card ________________________________________________ Signature ________________________________________________ Date
TOTAL DUES $40 Annual Dues X ___________ = ___________ Per Person # Enrolling Total Dues Dues payments are not deductible as charitable contributions for federal income tax purposes.
MAY WE THANK SOMEONE? If applicable, please provide the name, membership and chapter number of the member who introduced you to NARFE: ________________________________________________ Recruiter’s Name ________________________________________________ Recruiter’s Membership ID ________________________________________________ Recruiter’s Chapter Number Looking to meet others in the federal community and participate in NARFE at a local level? Call 800-627-3394 to learn about a NARFE chapter in your area. Or, if known, add Chapter # _________________________
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 without your express permission.
Member Perks
SAVE MONEY WITH NARFE Perks NARFE appreciates your service, and so do businesses across the country. Whether you are planning your next vacation or planning for retirement, members can save money on everyday purchases, thanks to our Affinity Partners. It’s just one more way we’re able to say “thank you” for being a NARFE member. finance and Legal
IDShield & LegalShield 571-830-5489 www.legalshield.com/info/narfe LegalShield offers legal service plans as well as identity theft protection plans to NARFE members at discounted monthly rates. For more information on rates and to sign up today, visit the website above.
to secure a comparable quote. Your completed quote will help benefit NARFE! For complete terms and conditions, visit www.narfe.org/memberperks.
NARFE Insurance Services 800-233-5764 www.narfeinsurance.com
NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.com
Designed and administered by Mercer Consumer, exclusively for NARFE members: senior age whole life, term life, Medicare supplements, hospital income plan, short-term recovery insurance, pet insurance, accidental death and dismemberment, cancer care, enhanced dental insurance and long-term care.
As the official provider of NARFE merchandise, the NARFE General Store offers NARFE-approved name badges, business cards, clothing, accessories, cups and mugs, plaques and clocks, and much, much more. Check out our online catalog for our customizable product line.
Moving services
InFirst Federal Credit Union 800-328-1500 www.infirstfcu.org
All NARFE members will receive contracted pricing for all interstate shipments. This will apply to packing, transportation and full-value coverage against damages. Please mention you are a NARFE member.
insurance
Wheaton World Wide Moving 800-248-7960 narfe@wvlcorp.com
GEICO offers a special discount opportunity for NARFE members. To find out how much you could save, visit our website or call today and mention that you are a NARFE member. Have your current coverage information available in order 46
Bekins Van Lines 800-248-4810 narfe@bekins.com
As a member of NARFE, you have the privilege of joining InFirst Federal Credit Union, which has been serving active and retired federal employees since 1935. The credit union offers extensive services at competitive rates to members nationwide at 5,000+ shared branches, 55,000 surcharge-free ATMs and 24/7 phone access. Accounts are insured by NCUA up to $250,000.
GEICO 800-368-2734 www.geico.com/fed/narfe
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narfe merchandise
At Wheaton, we know interstate relocating is much more than trucks and boxes. Moving is not simply an address change. It’s a life change. With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation. We offer you, as a NARFE member, benefits to help you have a positive interstate relocation experience. Call today and mention you are a NARFE member to start the moving process.
products
Omaha Steaks 800-228-9055 www.omahasteaks.com/ NARFE Since 1917, Omaha Steaks has been delivering customers the finest gourmet steaks, seafood, poultry, pork, sides and desserts. Omaha Steaks make memorable gifts for any holiday, or you can enjoy a gourmet meal right at home. NARFE members can enjoy FREE SHIPPING on select combos and an additional 10% DISCOUNT at checkout! If calling, use promo code YTZ.
Purchasing Power 866-670-3479 purchasingpower.com/NARFE With Purchasing Power, thousands of brand-name products are within reach. As members of NARFE, you can buy today and pay over time through payroll or annuity allotment. Choose from the latest computers, appliances, vacation packages and more. Never worry about
hidden fees, credit checks or interest. Pay over 6 or 12 months, and you’re done. Save 5% with code NARFEVIP.
Telecommunications
for the “budget-minded” renter. Today, with approximately 3,500 locations around the world, Budget is a leading rental car supplier now offering discounts to members of NARFE. Call or book your reservation now at Budget. com using the NARFE BCD number D871500.
Verizon FiOS www.narfe.org/memberperks NARFE members can save up to $10 a month on a new qualifying Triple Play bundle with Verizon FiOS Internet, TV and home phone service – savings of up to $120 per year. The FiOS 100% fiberoptic network delivers award-winning broadband and entertainment to your home. Only FiOS Internet customers get upload speeds as fast as their download speeds. With FiOS TV, 625+ channels are available, including 185+ in HD, and over 130,000 On Demand titles, thousands free. This exclusive onlineonly savings is only available to new Verizon customers or those upgrading to the Triple Play Package.
travel
Wyndham Hotel Group 877-670-7088 Choice Hotels International 800-258-2847 www.choicehotels.com With 6,200 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer. Advance reservations required through phone number or website above; cannot be redeemed at individual hotels. Choice Hotels brands are: Comfort Inn, Comfort Suites, Sleep Inn, Ascend Collection, Cambria, MainStay Suites, Suburban, EconoLodge, Clarion, Quality and Rodeway Inn.
Avis Car Rental 800-633-3469 www.avis.com Avis Car Rental is one of the world’s best-known car rental brands with approximately 5,500 locations in more than 165 countries. Avis has a long history of innovation in the car rental industry and is one of the world’s top brands for customer loyalty. Call or book your reservation now at Avis.com using the NARFE AWD number A701900.
Budget Car Rental 800-633-3469 www.budget.com Budget Car rental was founded in 1958
NARFE members receive up to 20% off the “Best Available Rate” at participating locations. Call and give the agent your special discount ID number, 8000002694, at time of booking to receive discount. Call to reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®. Advance reservations required through phone number above; cannot be redeemed at individual hotels.
Wellness
Beltone Hearing Care 888-418-6763
Alamo 800-462-5266 www.alamo.com Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call or visit our website today and reference Contract ID 262544.
RENT® and reference Contract ID 5282909. For complete terms and conditions, visit www.narfe.org/ memberperks.
Local Hospitality www.narfe.org/travel NARFE is pleased to offer its members an exclusive travel discount service. Savings may exceed 50% and average 10-20% below market on all hotels and car rental suppliers around the world. Any hotel, any car, anywhere, anytime!
National 800-CAR-RENT www.nationalcarrental.com You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation, call National Car Rental at 1-800-CAR-
Beltone has been helping the world hear better for 75 years. NARFE members receive 25% off, and those with Blue Cross Blue Shield Service Benefit Plan insurance coverage may be eligible for two Beltone True 3™ hearing aids for ZERO out-of-pocket.
Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-ofthe-art ultrasound technology in your neighborhood. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website.
NARFE Member Perks are designed to provide NARFE members with a quality option in their search for commonly used products and services. NARFE makes no guarantee on any products and services listed and encourages its members to shop and compare before making a decision on any financial matter. w w w. n a r f e . o r g
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The Way We Worked
Originally created as the Bureau of Investigation in 1908, the Federal Bureau of Investigation (FBI) is a federal law enforcement agency that protects and defends the United States and enforces its federal laws. The Bureau also provides leadership and criminal justice services to other federal, state and local agencies, including the U.S. military. For example, this 1982 photo shows an FBI special agent giving U.S. Marines instructions during an FBI special weapons and tactical training course in Tusten, CA. Photo from the records of the Office of the Secretary of Defense, 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 http://shfg.org.
Partners in Protection: FBI and U.S. Marines
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Did you know? The U.S. Marines’ relationship with the FBI includes housing the FBI Academy on a section of Marine Corps Base Quantico in Virginia. According to www. fbi.gov, the FBI ended up at Quantico when the shooting of three police officers and an FBI agent in 1933 led to FBI agents being given the authority to carry weapons. The Marines let the Bureau use the firing ranges at its Quantico base for target practice in 1934.
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“My friends all hate their cell phones… I love mine!” Here’s why.
FREE Car Charg er
Say good-bye to everything you hate about cell phones. Say hello to the ALL-NEW Jitterbug Flip. “Cell phones have gotten so small, I can barely dial mine.” Not the new Jitterbug® Flip. It features a larger keypad for easier dialing. It even has a larger display so you can actually see it. “I had to get my son to program it.” Your Jitterbug Flip set-up process is simple. We’ll even program it with your favorite numbers. “I tried my sister’s cell phone… I couldn’t hear it.” The Jitterbug Flip is designed with a powerful speaker and is hearing aid compatible. Plus, there’s an adjustable volume control. “I don’t need stock quotes, Internet sites or games on my phone. I just want to talk with my family and friends.” Life is complicated enough… The Jitterbug Flip is simple. “What if I don’t remember a number?” Friendly, helpful Operators are available 24 hours a day and will even greet you by name when you call. “My cell phone company wants to lock me in a two-year contract!” Not with the Jitterbug Flip. There are no contracts to sign and no penalty if you discontinue your service.
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Monthly Plan
$14.99/mo
$19.99/mo
Monthly Minutes
200
600
Operator Assistance
24/7
24/7
Long Distance Calls
No add’l charge
No add’l charge
Voice Dial
FREE
FREE
Nationwide Coverage
YES
YES
30 days
30 days
Friendly Return Policy1
More minute plans available. Ask your Jitterbug expert for details.
“I’d like a cell phone to use in an emergency, but I don’t want a high monthly bill.” The Jitterbug Flip has a plan to fit your needs… and your budget.
5Star Enabled
12:45P Mon Jan 30
“Many phones have features that are rarely needed and hard to use!” The Jitterbug Flip contains easy-to-use features that are meaningful to you. A newly designed built-in camera makes it easy and fun for you to capture and share your favorite memories. And a new flashlight with a built-in magnifier helps you see in dimly lit areas, the Jitterbug Flip has all the features you need. Enough talk. Isn’t it time you found out more about the cell phone that’s changing all the rules? Call now, Jitterbug product
experts are standing by. Available in Red and Graphite.
NEW Jitterbug Flip Cell Phone Call toll-free to get your Jitterbug Flip. Please mention promotional code 105223.
1-888-677-6842
We proudly accept the following credit cards:
47665
www.jitterbugdirect.com
IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. Plans and Services require purchase of a Jitterbug phone and a one-time setup fee of $35. Monthly fees do not include government taxes or assessment surcharges and are subject to change. Coverage is not available everywhere. 5Star or 9-1-1 calls can only be made when cellular service is available. 1We will refund the full price of the Jitterbug phone and the activation fee (or setup fee) if it is returned within 30 days of purchase in like-new condition. We will also refund your first monthly service charge if you have less than 30 minutes of usage. If you have more than 30 minutes of usage, a per minute charge of 35 cents will be deducted from your refund for each minute over 30 minutes. You will be charged a $10 restocking fee. The shipping charges are not refundable. There are no additional fees to call GreatCall’s U.S.-based customer service. However, for calls to a GreatCall Operator in which a service is completed, you will be charged 99 cents per call, and minutes will be deducted from your monthly rate plan balance equal to the length of the call and any call connected by the Operator. Jitterbug and GreatCall are registered trademarks of GreatCall, Inc. ©2016 GreatCall, Inc. ©2016 firstSTREET for Boomers and Beyond, Inc.
White/ Grey
You could pay a ridiculous price to surround your feet in comfort, but why?!
®
For less than $15 a pair you can get the superior support, comfort, & traction of our Original Omega Walking Shoes! Five colors, all in easy man-made wipe-clean good looks, layers and layers of padding, plus our patented Blue Dot Comfort Zone. Hurry!
Navy
SAVE MORE! 3 pairs for 44.98 • 4 pairs for 59.97 • 5 pairs for 74.96 Haband #1 Bargain Place, Jessup, PA 18434-1834 Card # ________________________________________ Exp.: ______/_____ Mr. Mrs. Ms. _____________________________________________________ Address _____________________________________________ Apt. # _____ City & State ______________________________________ Zip ___________ Phone __________________________________________________________ Email________________________________________________________________ I enclose $________ purchase price, and only $5.99 shipping & handling for my entire order. Please add applicable state & local sales tax for the following states: AZ, CO, FL, GA, MA, MN, NE, NJ, PA, WI, & WV. FREE SHIPPING! ®
Brown
Black
Charcoal
D Widths: 7 7 1⁄ 2 8 8 1⁄ 2 9 9 1⁄ 2 10 10 1⁄ 2 11 12 13 14 15 *EEE Widths (just $4 more per pair): 8 8 1⁄ 2 9 9 1⁄ 2 10 10 1⁄ 2 11 12 13 14 15
When you pay by check, you authorize us to use information from your check to clear it electronically. Funds may be withdrawn from your account as soon as the same day we receive your payment, & you will not receive your check back from your financial institution.
7X4–4759C
Ø9 WHITE/GREY NAVY Ø3 BROWN Ø4 BLACK Ø1 6A CHARCOAL
WHAT WHAT HOW SIZE? WIDTH? MANY?
100% Satisfaction Guaranteed or Full Refund of Merchandise Purchase Price!
Imported
For Faster Service Call: 1-800-543-4810 or visit www.Haband.com/bestdeals