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For Active and Retired Federal Employees

RETIREMENT LIFE

APRIL 2011, Volume 87, Number 4

LEGISLATIVE REPORT 8 11 11 12

Obama Budget Limits Impact on Feds Step-Increase Ban Defeated Government Shutdown Possible Former Hill Staffer Julie Tagen Named NARFE Assistant Legislative Director

Bill Would Move FECA Recipients to Annuities at Full Retirement Age

16 18

Civics 101: Coordinating District Advocacy State Tax Roundup

COVER STORY 22

ProtectAmericasHeartbeat.org: NARFE has launched an ambitious, integrated national advocacy and communications campaign to push back against attacks on federal workers’ and retirees’ benefits and reputations.

DEPARTMENTS 30 36 43 44 50

Questions & Answers

Cover design by Jim Richards

COLUMNS 6 Message From the National President

24 Managing Money 26 Live Well 28 Alzheimer’s Update 38 Vice President’s Views 38 From the Secretary’s Desk

40 Report From the Regions

SPECIAL SECTION 45 NARFE Scholarship Application

NARFE Resources NARFE-PAC Coupon . . . . . . . .12 Alzheimer’s Coupon . . . . . . . . .28

Retirement Benefits

Membership Application . . . . . .41

NARFE News

DuesWithholdingApplication . .42

Out & About

NARFE-FEEA Coupon . . . . . . .43

For the Record: TSP Investments, COLA Chart

visit us online at www.narfe.org

NARFE Member Perks . . . . . . .48

NATIONAL OFFICERS

Here’s How to Contact NARFE ...

JOSEPH A. BEAUDOIN, President; natpres@narfe.org PAUL H. CAREW, Vice President; natvp@narfe.org ELAINE HUGHES, Secretary; natsec@narfe.org CHARLES W. SAYLOR, Treasurer; nattreas@narfe.org

If you want to: • Join NARFE Call (toll-free):

800-627-3394 or 800-456-8410 Or go to:

www.narfe.org If you want to: • Change your address • Check your membership status • Find out dues owed • Provide a death notification Call (toll-free):

800-456-8410 E-mail:

memberrecords@narfe.org If you want to: • Add your e-mail address to your record (to receive GEMS e-mail messages, the Legislative Hotline and NARFE NewsWatch): Call (toll-free):

800-456-8410 E-mail:

memberrecords@narfe.org E-mail: memberrecords@narfeorg

If you want to:

• Hear the Legislative Hotline Call (toll-free):

877-217-8234 If you want to: • Get materials to recruit new members: Call (toll-free):

800-627-3394 E-mail:

rr@narfe.org For any other NARFE matter: Call NARFE Headquarters

703-838-7760 E-mail:

hq@narfe.org

REGIONAL VICE PRESIDENTS REGION I Gilbert W. Blaisdell (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 978-388-1830 E-mail: narf1568@comcast.net REGION II Ronald P. Bowers (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-308-0420 E-mail: narferbowers@msn.com REGION III Donald Stewart (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) Tel: 305-442-6388 E-mail: dejs33149@aol.com REGION IV Paul E. Johnson (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 812-306-5137 E-mail: pejohnson@tds.net REGION V Richard G. Thissen (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 573-365-5679 E-mail: rthissen99@msn.com

REGION VI Jerome S. Smith (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-534-5849 E-mail: retiredjer@aol.com REGION VII Betty Lucero-Turner (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 719-583-0910 E-mail: blturner2311@aol.com REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) Tel: 707-644-7565 E-mail: hlz17@aol.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) Tel: 360-692-9741 E-mail: lannyjean@comcast.net REGION X William F. Martin (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 540-872-3345 E-mail: narfe2065@hughes.net

NARFE MAGAZINE Volume 87,Number 4 Editor, Margaret M. Carter Assistant Editor, Donna J. St. John Editorial Administrator, Toni Vallario Graphic Designer, Beth Bedard Contributing Designers, Charlene Gridley, Jim Richards Editorial Board: Joseph A. Beaudoin, Paul H. Carew, Elaine Hughes, Charles W. Saylor Editorial Office: NARFE, Attn: NARFE magazine, 606 North Washington St., Alexandria, VA 22314-1914; Phone: 703-838-7760; Fax: 703-838-7781; E-mail: rl@narfe.org Advertising Sales: Warren Berger, Media People Inc., 122 East 42nd Street, Suite 725, New York, NY 10168; 212-779-7172, ext. 223; E-mail: 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 866-504-7300 or go to www.nfbnewsline.org. On Tape: Issues of NARFE magazine are also available on cassette through the National Library Service for the Blind and Physically Handicapped. To find out about availability in your area, call 800-424-8567 and ask for the Reference Section. 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.

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. Non-member subscription rate $45. Postmaster: Send address change to: NARFE Attn:Member Records,NARFE 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. Contents of this magazine are copyrighted © 2011.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.

APRIL 2011 | NARFE

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A Message From the National President

A Time for Change

t’s spring, and change is in the air. NARFE is promoting change in two important areas, and we need your help. First, as I mentioned in a special alert in the March issue of NARFE magazine (p. 38), we have embarked on an aggressive new, multifaceted campaign, “Protect America’s Heartbeat,” to defend our earned pay and benefits, and to change the way federal employees are viewed by members of Congress and the public at large. This new campaign is the subject of this month’s cover story. I hope you will pay special attention to the part of the story that asks for your participation. It is absolutely imperative that every NARFE member visit the website ProtectAmericasHeartbeat.org and sign the petition that you will find there. If you have colleagues or former colleagues who are not NARFE members, please ask them to go online and sign the petition, too. The second change under way is related to NARFE’s Bylaws. Last September, delegates at NARFE’s National Convention passed a resolution calling for the establishment of a 10-member committee to examine the Bylaws to see what, if any, changes need to be made to make NARFE work more efficiently. The reason I mention it now is that this is federation convention time. If past conventions are any indicator, many federations will consider resolutions for submission to Headquarters for the 2012 National Convention. Because of the work of the Bylaws Review Committee, I am asking that federations refrain from considering and/or submitting any resolutions that deal with NARFE’s Bylaws. The Bylaws Review Committee, made up of one member from each of our 10 regions, will make its report to the 2012 National Convention. The committee was appointed by Immediate Past National President Margaret L. Baptiste on recommendations from each of the members of the National Executive Board (NEB). Committee members, by region, are: Region I, Stephen J. Shurtleff, Penacook, NH; Region II, Michael Demski, Hawthorne, NJ; Region III, Larry T. Shaff, Hilton Head Island,

SC; Region IV, David Adams, Macomb Township, MI; Region V, Linda Kurz, Lonedell, MO; Region VI, Jefferson W. Vaughan, Hulbert, OK; Region VII, Dorothy White, Centennial, CO, who is also the committee’s parliamentarian; Region VIII, Larry Enomoto, Ewa Beach, HI; Region IX, Committee Chair Mary Williams, Helena, MT; and Region X, Gaston Gianni, Dumfries, VA. The best way for a NARFE member to submit a recommendation to the committee is to send it by e-mail to brc@narfe.org or by postal mail to the Office of the National Secretary at NARFE Headquarters. (The current Bylaws may be found on the Leadership Home Page of the NARFE website, www.narfe.org.) The committee has been asked to prepare a draft report to be presented at the meeting of the NEB and federation presidents scheduled for this July in Reno, NV. Once input is received from the NEB and federation presidents, the committee will present an interim report at the federation conventions in their respective regions during spring 2012, with a final draft ready for the Reno National Convention later that year. If you are interested in an outline of what will take place at the 2012 National Convention regarding the Bylaws Review Committee’s recommendations, see the article by NARFE’s National Parliamentarian Paul Lamb in the March issue of NARFE magazine (p. 42). I urge all NARFE members to give careful thought to how we do business. The staggering loss of membership that we’ve suffered in the last decade and a half indicates we cannot continue to do business as usual. Will a revision or complete overhaul of our Bylaws alleviate this? Perhaps not. But it’s very plain to me and many other NARFE leaders that the time has come for a serious discussion about making some changes.

THE TIME has come for a serious discussion about making some changes.

Joseph A. Beaudoin natpres@narfe.org

APRIL 2011 | NARFE

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LEGISLATIVE REPORT

Obama Budget Limits Impact on Feds OpeningVolley In Fight to

he fiscal year 2012 budget submitted by President Obama to Congress in February recommends freezing federal civilian salaries for the second year in a row and cutting nondefense discretionary spending by $400

billion. Other plans to reduce federal civilian retirement and health benefits suggested in December 2010 by the president’s bipartisan National Commission on Fiscal Responsibility and Reform were not included in Obama’s 2012 budget. “America’s federal work force understands the importance of fiscal responsibility – federal employees are already doing their part to reduce the deficit by submitting to a two-year pay freeze. The president’s deficit-reduction proposals will have consequences for all of us, but at least his budget does not include the Fiscal Commission’s most harmful proposals to federal workers and annuitants. We must be clear that this is the president’s opening volley in the budget fight with Congress, where almost everything will be on the table, including the earned retirement, pay and health benefits of federal employees, retirees and survivors,” said NARFE President Joseph A. Beaudoin.

CONGRESSIONAL RESPONSE Presidential budgets do not have the force of law. Members of Congress

may approve, reject or change any of the president’s recommendations. The House Republican leadership swiftly denounced President Obama’s budget, and Democratic leaders in the Senate gave it a warmer reception. Congress will respond to the president’s budget with its own budget plan – the Concurrent Resolution on the Budget — the annual roadmap that Congress uses to direct its decisions about spending and taxes. The budget resolution can instruct the committees of the House and Senate to cut spending in entitlement programs, such as Social Security, Medicare, Medicaid, and federal civilian and military retirement, and may even suggest specific policies to achieve the cuts. While budget resolutions do not have the force of law (they require agreement only between the House and Senate and not the president’s signature), congressional action is bound by

Defend Benefits ■ This year,taxpayers get an

extra three days to file their federal tax returns. April 15 is a Friday,but the Internal Revenue Service (IRS) follows the District of Columbia holiday calendar,andApril 16 is Emancipation Day.Because April 16 is a Saturday,the holiday is commemorated on Friday,giving taxpayers until Monday, April 18,to file their taxes.Emancipation Day celebrates the day in 1862 when Abraham Lincoln emancipated the slaves in the District of Columbia. ■ In fiscal year 2009,the IRS

collected more than $2.3 trillion in revenue and processed more than 236 million tax returns.It cost taxpayers just 50 cents for every $100 it collected that year.

LEGISLATIVE HOTLINE Toll-free! (24 Hours): 877-217-8234 Legislative Action Center: www.narfe.org APRIL 2011 | NARFE

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Legislative Report the blueprints. The congressional budget is enacted through the approval of appropriations measures and budget reconciliation legislation, which will be considered this spring, summer and fall. The Budget Act requires Congress to complete action on the budget resolution by April 15.

FEDERAL EMPLOYEES’ COMPENSATION ACT (FECA) The president’s budget would require that the Federal Employees’ Compensation Act (FECA) benefits of future participants be replaced at retirement age by annuities paid through the federal retirement system. (See article on a FECA bill introduced by Sen. Susan M. Collins, R-ME, p. 14.) FECA authorizes the Labor Department’s Office of Workers’ Compensation Programs to pay benefits to federal employees for work-related illnesses and injuries. The income FECA beneficiaries receive is intended to replace wages they lost because they can no longer work. In exchange for these benefits, FECA participants forfeit their right to sue the government for their work-related injuries. “Although current FECA beneficiaries may not be affected, NARFE is concerned that the benefits of future recipients could be unfairly reduced under the proposal to move them from workers’ compensation into the retirement system,” said Beaudoin.

CONTAINING DRUG PRICES Most Federal Employees Health Benefits Program (FEHBP) plans contract with pharmaceutical benefit managers (PBMs) to negotiate discounts on prescription drugs with manufacturers. While PBMs help to contain FEHBP drug costs, their leverage to negotiate discounts is limited because they are spread out among the more than 200 different plans that are offered through the FEHBP. In response, the president’s budget recommends a proposal first made by NARFE in 2001 to take prescription drug benefits out of the existing FEHBP benefit structure and offer coverage for medication as a separate stand-alone benefit, available to all FEHBP enrollees. However, there would be no separate premiums for prescription drug coverage, and the cost would continue to be included in FEHBP plan rates. This proposal is modeled after the pharmacy benefit currently offered through the Defense Department’s TRICARE-For-Life program. Although the budget does not offer additional details on the change, it is assumed that the Office of Personnel Management (OPM) would negotiate a single PBM contract or enter into an arrangement with TRICARE to administer the program.

STORY HIGHLIGHTS ■ President Obama’s FY 2012 budget proposes to

freeze federal employee pay for a second year but does not include any other recommendations from the Fiscal Commission. ■ However,this is only the opening volley in the congressional budget battle. ■ The president’s budget contains proposals that could result in lower prescription drug prices in the FEHBP and reaffirms support for modernization of the federal retirement processing system.

“While further review of the plan details are needed, NARFE supports the concept of better leveraging the nine million enrollees in the FEHBP to control skyrocketing prescription drug prices,” said Beaudoin. In addition, NARFE has long supported proposals that would allow FEHBP plans to buy prescription drugs for enrollees at the discount mandated by the Federal Supply Schedule.

AUTOMATING THE CALCULATION OF ANNUITIES NARFE was pleased that the administration’s budget reaffirmed the government’s commitment to modernization of the retirement system, an initiative that, once implemented, would shorten the average time it takes to authorize Civil Service Retirement System or Federal Employees Retirement System annuity payments. Overall, “RetireEZ,” or Retirement System Modernization, initiated by OPM in 2005, has accelerated the time OPM takes to calculate annuity payments by replacing an antiquated paper-based processing system with electronic personnel records and an automated system. However, the project hit a major snag in May 2008 when OPM instructed a contractor to suspend work on flawed computer software that would have calculated annuities. The shortcoming did not affect annuities calculated and paid in 2008 or since then. More recently, higher-than-anticipated retirements from the U.S. Postal Service seem to have overwhelmed retirement annuity processing. “NARFE continues to support OPM’s efforts to shorten the time to process full annuity payments, and we will work with the agency to overcome any remaining obstacles,” Beaudoin said.

By Dan Adcock,Legislative Director Legislative Counsel Alan Lopatin contributed to this article. APRIL 2011 | NARFE

Step-Increase Ban Defeated

n amendment that would have gone beyond the current two-year federal employee pay freeze by banning meritawarded step increases was defeated February 19 in the House. The amendment, by Rep. Darrel E. Issa, R-CA, was rejected on a vote of 191-230, with 190 Republicans and one Democrat voting for the measure and 184 Democrats and 46 Republicans voting against it. On February 16, NARFE President Joseph A. Beaudoin sent a letter to all 435 representatives, urging them to vote against the amendment. “Pay and benefits are a critical management tool in any organization. To tie the hands of the federal government as an employer – denying supervisors the ability to manage the work force and line workers the incentive to excel – is counterintuitive, given the challenges we face,” Beaudoin wrote. Republican representatives who crossed party lines and voted against the ban on step-pay increases were: Aderholt

STORY HIGHLIGHTS ■ The House defeated an amendment that would

have gone beyond the two-year federal employee pay freeze and banned step increases. ■ NARFE had urged the amendment be defeated. (AL), Austria (OH), Barletta (PA), Bartlett (MD), Barton (TX), Bishop (UT), Bonner (AL), Brooks (AL), Burgess (TX), Capito (WV), Crenshaw (FL), Davis (KY), Diaz-Balart (FL), Emerson (MO), Forbes (VA), Gerlach (PA), Gibson (NY), Grimm (NY), Guthrie (KY), Harper (MS), Harris (MD), Heck (NV), Jones (NC), King (NY), Kinzinger (IL), Lance (NJ), Latham (IA), LaTourette (OH), LoBiondo (NJ), McCotter (MI), McKinley (WV), Murphy (PA), Rigell (VA), Roe (TN), Rogers (AL), Rogers (KY), Ros-Lehtinen (FL), Schilling (IL), Shuster (PA), Simpson (ID), Smith (NJ), Thompson (PA), Webster (FL), Wittman (VA), Wolf (VA) and Young (AK).

By Dan Adcock,Legislative Director

Government Shutdown Possible

t press time, a shutdown of the federal government in March seemed possible as a result of an impasse between House Republicans and Senate Democrats and President Obama on current-year spending legislation. Consequently, federal workers could be furloughed, and government services could be suspended. Historically, employees have been paid for the days they were sent home during short lapses in funding. H.R. 1, the continuing appropriations bill passed by the House on February 19, would cut more than $60 billion from current levels of discretionary spending — about $100 billion below President Obama’s fiscal year 2011 budget request. Senate Democrats have rejected the bill and, instead, have called for a freeze at current spending levels ($41 billion below the president’s request) for the rest of fiscal year 2011, which ends September 30. Until the stalemate can be resolved, Senate Majority Leader Harry Reid, D-NV, suggested that the House and Senate pass a one-month extension at current spending levels. House Speaker John A. Boehner, R-OH, said the House would pass a short-term funding measure only if it cut current spending levels. Absent an agreement, spending NARFE | APRIL 2011

STORY HIGHLIGHTS ■ A federal government shutdown seemed possible

over a disagreement on government spending. ■ The last time the government shut down,payment

of federal annuities was not interrupted. authority would expire on March 4, and the government would shut down.

WHAT IT MEANS FOR FEDS In February, the president’s Office of Management and Budget (OMB) was dusting off plans not used since the most recent shutdowns in 1995 and 1996 to prepare for a “funding hiatus.” During the 1995/1996 shutdowns, employees at the Treasury Department’s Financial Management Service responsible for distributing federal civil service retirement annuity checks were considered “essential” employees and stayed on the job, and payment of annuities was not interrupted. OMB had not yet definitively said how payment of benefits would be affected if there is a shutdown this time.

By Dan Adcock,Legislative Director

Legislative Report

Former Hill Staffer Tagen Named NARFE Assistant Legislative Director

sional frank. Her role was to tell members of Congress what ulie Tagen has joined NARFE’s Legislative Departthey could or couldn’t send out in the mail. She held that ment as assistant legislative director. Tagen was born position until 1995. and raised in Philadelphia, PA, and In succeeding years, she became a prograduated from the University of fessional political fundraiser and adviser, Maryland with a degree in government working for nonprofits and political camand politics. While in college, she interned paigns. with the Maryland General Assembly, and In 2002, she joined the presidential camthat is where her love of policy and politics paign of Gov. Howard Dean of Vermont. She took hold. stayed in that position until the end of the Her first job after graduation was with the Dean campaign in March 2004 and subseFederal Managers Association, working as a quently joined the John Kerry for President legislative representative. In 1989, she began Campaign. her first stint on Capitol Hill, working on the In March 2005, she became the Deputy House Committee on Post Office and Civil National Finance Director of the Democratic Service. She served as a professional staff National Committee, raising money nationmember for the Subcommittee on Human wide, and managing relations and programs Resources, which was chaired by Rep. Paul E. Julie Tagen during the Denver Democratic National Kanjorski, D-PA. The subcommittee worked Convention in August 2008. She stayed in that position until on issues such as the process for reductions in force, federal becoming the chief of staff to freshman Rep. Alan Grayson, contracting-out issues (the application of Circular A-76) and D-FL. She served as Grayson’s top policy and political adviser looking at how work-sharing and telecommuting would imand managed his Washington, DC, and district offices. pact the federal work force. During his time in Congress, Grayson became a NARFE In 1992, she became the staff director of the House Commember. mission on Congressional Mailing Standards, under She lives in Silver Spring, MD, with her family and many Chairman Bill Clay, D-MO. The commission, also known as pets. ■ the Franking Commission, reviews the use of the congres-

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APRIL 2011 | NARFE

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Legislative Report

Bill Would Move FECA Recipients to Annuities at Full Retirement Age

en. Susan M. Collins, R-ME, has introduced a bill to terminate workers’ compensation benefits for individuals who reach full Social Security retirement age, replacing those benefits with retirement annuities. Currently, under the Federal Employees’ Compensation Act (FECA) of 1916, federal employees disabled by work-related injuries receive basic compensation, along with medical benefits. Basic compensation for employees who are single or have no dependents is usually two-thirds of their monthly pay (or two-thirds of the difference between their monthly pay and their monthly wage-earning capacity); employees who are married or have dependents get threequarters of their pay. Benefits provided under FECA constitute the sole remedy against the United States for employees with workrelated injuries – employees receive the benefits in lieu of a right to sue. Because the benefit is provided as compensation in lieu of that right to sue for a work-related injury, it is tax-free. Under Collins’ bill, the Federal Employees’ Compensation Reform Act of 2011 (S. 261), employees receiving FECA benefits would no longer be entitled to their basic compensa-

Congressional Recesses

ARFE members are urged to schedule personal meetings with members of their congressional delegations during scheduled recesses or “work periods” when most members of Congress will spend time in their districts.Upcoming recesses are: • Easter-Passover (House and Senate): April 16-30 • ConstituentWorkWeek (House only): May 14-22 • Memorial DayWeek (Senate only): May 28-June5 • ConstituentWorkWeek (House only): June 4-12 • Independence Day (House only): June 25-July 5 • Independence Day (Senate only): July 4-12 • ConstituentWorkWeek (House only): July 16-24 • August/Labor Day (House and Senate): August 6September 5.

STORY HIGHLIGHTS ■ Federal employees receiving benefits under the

Federal Employees’ CompensationAct for a workrelated injury would be transferred to the federal retirement system when they reach full Social Security retirement age,under a bill introduced by Sen.Susan M.Collins,R-ME. ■ For most FECA beneficiaries,it could mean substantially lower compensation. ■ NARFE has concerns about the bill and is working with Sen.Collins’ staff to best address those concerns. tion benefits once they reach full Social Security retirement age. Instead, they would receive Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) retirement annuities that are calculated based on years of service and the employees’ high-three years of salary. The net result for most recipients likely will be a reduction in compensation, potentially substantial, along with higher taxes. Both CSRS and FERS provide disability retirement annuities that give credit to employees in the computation of annuities for years of service for the years in which they were disabled. Under current law, employees must apply for annuities within one year of their disability. Some FECA recipients may have applied and received approval for disability retirement annuities but do not receive them currently because employees cannot receive both FECA and disability retirement simultaneously. S. 261 does not address FECA recipients’ eligibility for disability retirement (as opposed to normal retirement) annuities or the extent to which they would receive creditable years of service as FECA recipients. NARFE has concerns about this legislation because the benefits of recipients could be unfairly reduced under the proposal to move them from workers’ compensation into the retirement system. NARFE Legislative Department staff are working with Sen. Collins’ staff on what modifications might address the Association’s concerns, prior to consideration of the bill.

By John Hatton,Legislative Specialist

APRIL 2011 | NARFE

Legislative Report CIVICS 101:

THE INFORMED CITIZEN

Coordinating District Advocacy

ost NARFE members know which congressional district they live in and the name of the incumbent representative. However, it is a rare member who knows the exact boundaries of that district, much less the other districts in the state. Now, state legislatures (commissions in a few states) are using just-released census counts to draw new congressional district maps for the 2012 elections.

ONE LIAISON PER DISTRICT Even more daunting than coordinating a single NARFE chapter split into multiple congressional districts is coordinating pieces of multiple chapters that make up a congressional district. This conundrum prompted NARFE to encourage federations to identify a single NARFE member in each congressional district to serve as the Congressional District Liaison.

THE CHALLENGE California has 53 congressional districts and, for the first time since statehood, did not earn any additional seats in the decennial census. Still, much change is afoot because a recently established commission will redistrict California for 2012. This likely major redrawing of the 53 districts means NARFE will also need to reorganize in the Golden State. This will require a plan. Along California’s northern coast, the First Congressional District includes all or parts of 11 chapters and parts of three of the 10 NARFE districts used by our California Federation. At the other end of the state, Chapter 3 in Los Angeles includes members who live in nine different congressional districts. On the opposite coast, Chapter 23 in Manhattan-Bronx, NY, has members living in

Are you in the loop? To keep up-to-date on the latest developments in Washington,sign up for the NARFE Legislative Hotline and Legislative Alerts. Call 800456-8410 and ask that your e-mail address be added to your member record. Or go to the NARFE website, www.narfe.org,sign in as a member and click on “Join GEMS” under What You Can Do Online on the left side of the page.

STORY HIGHLIGHTS ■ Congressional district organizing by NARFE

members is especially important as redistricting proceeds. ■ NARFE chapters should work as a group to select a Congressional District Liaison – a“go-to” person for each representative.

eight different congressional districts. However, other chapters have members living in some of these districts.

THE OPPORTUNITY NARFE has many talented members. Some are serving in elected positions at the chapter and federation levels. Others are awaiting discovery or an opportunity to volunteer. Federations that have instituted a system of Congressional District Liaisons use both already-identified legislative leaders and fresh recruits. The federation or NARFE Headquarters can provide resources, especially chapter numbers and membership counts by chapter for each congressional district. Another vital pair of numbers to use in congressional district advocacy are the recently updated counts of federal retirees and federal employees by congressional district.

THE IDEAL For each NARFE member to know and advocate before his or her representative and senators are necessary but not sufficient conditions for success. An ideal development would be for NARFE members to work together to promote one of their own, perhaps the Congressional District Liaison, so that members of Congress, especially representatives, will identify NARFE with a particular constituent. As I meet with members of Congress, I tell them I work for NARFE, and I ask them if they have a specific NARFE leader in their district. When I “ambushed” thenRep. Bart Stupak, D-MI, in a congressional cafeteria and asked him that question, he immediately named Ken Andersen, an Upper Peninsula of Michigan chapter president. Collectively, building this kind of relationship would be ideal.

By Christopher Farrell,Legislative Representative

APRIL 2011 | NARFE

NARFE’s Congressional Directory for the 112th Congress (2011-2012) Congressional Information: • Listing of Members of Congress by state delegation, with color photos, biographical data and Congressional District maps. • Members’ contact information, including addresses, phone and fax numbers, website addresses, district offices and key staffers. • How Congress is organized and operates, with complete listing of committees, subcommittees and leadership. • Contact information for the White House, Cabinet, Supreme Court and federal agencies. … And customized for NARFE members

Special insert with NARFE-specific information and data to be used for grass-roots advocacy.

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Legislative Report StateTaxTreatment of Federal Annuities –Tax Year 2010

his roundup of state tax treatment of federal annuities and other tax information was compiled by the NARFE Legislative Department. The information also is available on the NARFE website,www.narfe.org.

STATES EXEMPTING TOTAL AMOUNT OF CIVIL SERVICE ANNUITIES Alabama Hawaii Illinois

Kansas Kentucky1 Louisiana

Massachusetts Michigan Mississippi

New York North Carolina2 Oregon3

Pennsylvania Tennessee

1 Kentucky: Amount attributable to service prior to January 1,1998,is exempt.See below for taxation of annuities attributable to service on or after January 1,1998. 2 North Carolina: Annuities not taxed if the individual had five years of government service as of August 12,1989.If otherwise,see below. 3 Oregon: Annuities of those who retired before October 1, 1991, are not taxed. Those who retired after October 1, 1991, are taxed only on that portion of the annuity attributable to government service after October 1,1991.

STATE SALES TAX (DOES NOT INCLUDE CITY OR COUNTY ADD-ONS) Alabama* Alaska Arizona*† Arkansas* 1 California*† Colorado*† Connecticut*† 2 Delaware 3 Dist.of Col.*† 4 Florida*† 5 Georgia*† Hawaii* 6 Idaho*

4.0 % 0.0 6.6 6.0 8.25 2.9 6.0 0.0 6.0 6.0 4.0 0.0 6.0

Illinois 7 Indiana*† Iowa*† Kansas* Kentucky*† 8 Louisiana*† Maine*† Maryland*† 9 Massachusetts*† 10 Michigan *† 11 Minnesota*† 12 Mississippi* 13 Missouri* 14

6.25 % 7.0 6.0 6.3 6.0 4.0 5.0 6.0 6.25 6.0 6.875 7.0 4.225

Montana 15 Nebraska*† Nevada*† New Hampshire 16 New Jersey*† 17 New Mexico 18 New York*† 19 N.Carolina 20 N.Dakota*˜† 21 Ohio*† 22 Oklahoma* Oregon Pennsylvania*† 23

0.0 % 5.5 6.85 0.0 7.0 5.125 4.0 5.75% 5.0 5.5 4.5 0.0 6.0

Rhode Island*† 24 S.Carolina*† S.Dakota* Tennessee* 25 Texas*† 26 Utah* 27 Vermont*† 28 Virginia* 29 Washington*† West Virginia* 30 Wisconsin*† Wyoming*†

7.0 % 6.0 4.0 7.0 6.25 4.7 6.0 5.0 6.5 6.0 5.0 4.0

* Prescription drugs are exempt † Food is exempt Notes regarding differing rates, exemptions and otherwise. Exemptions are not exhaustive.Gas and cigarette taxes are not included. 1 Arkansas: Taxes food at 2% 2 Connecticut: Also exempts nonprescription drugs 3 Delaware: Imposes a gross receipts tax on the seller of goods (tangible or otherwise) ranging from 0.1037% to 2.0736% 4 District of Columbia: Also exempts nonprescription drugs and residential utility services. Imposes different rates for liquor sold for offthe-premises consumption (9%); restaurant meals, liquor for consumption on the premises and rental vehicles (10%); parking motor vehicles in commercial lots (12%); and hotels or transient accommodations (14.5%) 5 Florida: Also exempts nonprescription drugs 6 Hawaii: Does not have a sales tax but imposes a general excise tax of 4% of the gross receipts of most businesses 7 Illinois: Taxes qualifying food, prescription and nonprescription drugs,and medical appliances at 1% 8 Kentucky: Also exempts medical supplies and residential utilities other than telephone 9 Maryland: Also exempts nonprescription drugs 10 Massachusetts: Also exempts sales of periodicals,admission tickets, utilities and heating fuel,and items of clothing costing $175 or less 11 Michigan: Taxes home heating fuels at 4% 12 Minnesota: Also exempts nonprescription drugs.Taxes liquor and beer at 9.375% 13 Mississippi: Additional exemptions and varied rates available at www.dor.ms.gov/taxareas/sales/main.html 14 Missouri: Taxes food at 1.225% 15 Montana: Taxes campgrounds and accommodations at 3%,rental vehicles at 4%

16 New Hampshire: Taxes lodging and restaurant meals at 8% 17 New Jersey: Also exempts nonprescription drugs, clothing and footwear 18 New Mexico: Does not have a sales tax but imposes a gross receipts tax instead, which has a similar effect, on persons engaged in business in New Mexico.In almost every case,the tax is passed to the consumer, either separately stated or as a part of the selling price. Rate varies within the state from 5.125%-8.8675%. Deductions are available,including for prescription drugs and qualifying food sales. 19 NewYork: Also exempts nonprescription drugs 20 North Carolina: A temporary state sales and use tax of an additional 1% has been in effect since September 1,2009,and expires July 1,2011 21 North Dakota: Taxes lodging at 6%,alcoholic beverages at 7% 22 Ohio: Also exempts newspaper and magazine subscriptions and telephone service 23 Pennsylvania: Also exempts nonprescription drugs, clothing, textbooks and heating fuels 24 Rhode Island: Also exempts nonprescription drugs 25Tennessee: Taxes food at 5.5% 26Texas: Also exempts nonprescription drugs 27 Utah: Taxes food at a state rate of 1.75% with local additions of up to 3% 28 Vermont: Also exempts nonprescription drugs, clothing and footwear, newspapers and residential utilities.Taxes prepared and restaurant meals and lodging at 9% and alcoholic beverages served in restaurants at 10% 29 Virginia: Includes statewide local tax of 1%. Taxes food for home consumption at 2.5%, which includes statewide local tax of 1%. Also exempts nonprescription drugs 30WestVirginia: Taxes food at 3% APRIL 2011 | NARFE

STATES WITH NO PERSONAL INCOME TAXES Alaska Florida

Nevada New Hampshire1

South Dakota Tennessee2

Texas Washington

Wyoming

1 New Hampshire: Taxes interest/dividend income at 5% if it exceeds $2,400 (single) or $4,800 (couple).$1,200 exemption for residents age 65+. 2Tennessee: Taxes certain interest/dividend income at 6% if it exceeds $1,250 (single) or $2,500 (couple).

OTHER EXEMPTIONS Note: SS=Social Security; RR=Railroad Retirement;AGI=Adjusted Gross Income;HH=Head of Household;MFJ=Married Filing Jointly; MFS=Married Filing Separately; QW=Qualified Widow(er); CSRS=Civil Service Retirement System; IRA=Individual Retirement Account ARIZONA: $2,500 exclusion for federal, military and Arizona state and local pension income. SS and RR exempt. Additional personal exemption for all residents age 65+. ARKANSAS:Exempts up to $6,000 in federal civil service,military, in-state and out-of-state state or local government and private pension income. IRA distributions can be included as part of the exemption if the taxpayer is age 59-1/2+. SS andTier 1 and Tier 2 RR benefits are exempt. Additional $23 exemption for residents age 65+. CALIFORNIA:SS and RR are exempt. Additional $99 personal exemption for residents age 65+. Residents age 65+ with AGI below $63,441 who qualified as HH in 2008 or 2009 by providing a household for a qualifying individual who died during 2008 or 2009 may claim a tax credit of 2% of their income up to a maximum of $1,196. All private and public pensions are taxed. COLORADO: $20,000 pension/annuity exemption for all taxpayers between the ages of 55 and 64. $24,000 pension/annuity exemption for all taxpayers age 65+. CONNECTICUT: SS is exempt if federalAGI is $50,000 or less (if single or MFS),or $60,000 or less (if MFJ,HH or QW with dependent child). All out-of-state government and federal civil service pensions are fully taxed.Exempts 50% of federally taxable military retirement pay. DELAWARE: Taxpayers age 60+ may exclude $12,500 of investment and qualified pension income (including out-of-state and federal government pensions) and qualify for an additional tax credit of $110. Taxpayers under age 60 may exclude $2,000. Taxpayers age 65+ (or blind) are entitled to an additional standard deduction of $2,500 (if not itemizing).Single or MFS taxpayers age 60+ as of December 31, 2009, or totally disabled, may exclude $2,000 if earned income is less than $2,500 andAGI is $10,000 or less.If MFJ and both spouses are age 60+ as of December 31,2009,or totally disabled,may exclude $4,000 if earned income is less than $5,000 andAGI is $20,000 or less.SS and RR are exempt. DISTRICT OF COLUMBIA:Taxpayers age 62+ may exclude $3,000 of military,federal and DC government pensions.For taxpayers age 62+,DC or federal government survivor benefits are exempt from DC tax. Additional exemption of $1,675 for residents age 65+. SS is exempt. GEORGIA: Taxpayers who are age 62+,or permanently and totally disabled regardless of age, may exclude $35,000 of retirement income if single or MFS,and $70,000 if MFJ (assuming both spouses qualify).Retirement income includes income from pensions and annuities, interest income, dividend income, net income from rental property, capital gains income and income from royalties. Up to $4,000 of the maximum allowable exclusion may be earned income.SS is exempt. HAWAII: SS andTier 1 RR benefits are exempt. Additional personal exemption of $1,040 per person age 65+. IDAHO: SS and RR are exempt.Retirement benefits deduction available for federal civil service annuities for taxpayers age 65+, or 62+ and disabled, in the amount of $27,876 (if single) or $41,814 (MFJ) minus SS and RR received. Persons using MFS status are not eligible for the retirement benefits deduction. Add $1,100 to standard deduction if age 65+ and MFS, MFJ or QW;add $1,400 if age 65+ and single or HH. ILLINOIS: SS and RR and income from any qualified employee NARFE | APRIL 2011

benefit plan are exempt. INDIANA:Taxpayers age 60+ may exclude $2,000 from military pensions minus the amount of SS and RR benefits received. Taxpayers age 62+ may deduct from theirAGI $2,000 from a federal civil service annuity (survivor annuities not included).SS and RR benefits are exempt. Additional personal exemption of $1,000 or $1,500 if federal AGI is less than $40,000 for residents age 65+.May deduct from income premiums paid for long-term care insurance through the Indiana Partnership. IOWA:Taxpayers age 55+ may exclude up to $6,000 (if single) or $12,000 (if MFJ) of pension or annuity income,self-employed retirement plan income, deferred compensation, IRA benefits or other retirement plan benefit income (not including SS). 55% of federally taxable SS benefits are excluded.RR benefits exempt but used to calculate amount of federally taxable SS benefits (see worksheet at www.iowa.gov/tax/1040EI/Line/10Line13. html). Additional $20 personal exemption credit for those age 65+. KANSAS: RR,military,in-state/local pensions are exempt.SS exempt if federalAGI is $75,000 or less;otherwise,only federally taxable benefits taxed. Additional $850 deduction for those age 65+. KENTUCKY: All federal civil service and military retirement annuities attributable to service prior to January 1,1998,are excluded. Annuities attributable to service after January 1, 1998, are included as pension income,of which taxpayers may exclude up to $41,110.SS and RR benefits,Roth IRA proceeds exempt. LOUISIANA: SS is exempt.Federal annuities are exempt.In addition, persons age 65+ may exclude up to $6,000 of annual retirement income from their taxable income.Taxpayers MFJ and both age 65+ can each exclude up to $6,000 of annual retirement income.If only one spouse has retirement income,the total exclusion is limited to $6,000. MAINE: May deduct $6,000 of eligible pension income,including federal civil service annuity income,from federalAGI.Except for military income, the $6,000 deduction must be reduced for SS and RR benefits. Additional standard deductions:for individuals, $1,400 if age 65+; for MFS, MFJ or QW, $1,100 per spouse or person who is age 65+. MARYLAND: If age 65+,may exclude up to $26,100 in pension income, reduced by SS or RR benefits. SS and RR are exempt. Additional $1,000 exemption for residents age 65+. Additional $5,000 exemption for military retirement income received by an individual of any age or the surviving spouse or ex-spouse of the individual,if the individual was a member of an active or reserve component of the U.S. military, an active duty member of the commissioned corps of the Public Health Service, the National Oceanic and Atmospheric Administration, the Coast and Geodetic Survey,or a member of the Maryland National Guard. MASSACHUSETTS: SS is exempt.Additional exemption of $700 for individuals age 65+. MICHIGAN: In-state,local and military pensions are exempt.SS is exempt.Some out-of-state public pensions are exempt.Private pension income is exempt up to $45,120 (individual filers) or $90,240 (MFJ),reduced by the amount of any public pension deduction claimed. Taxpayers age 65+ may deduct interest, dividends and capital gains up to $10,058 (individual filers) or $20,115 (MFJ). Additional exemption of $2,300 for individuals age 65+. MINNESOTA: RR is exempt. MISSISSIPPI: Retirement income is exempt, including SS. Additional exemption of $1,500 for residents age 65+. MISSOURI:Taxpayers withAGI under $85,000 (single,HH,MFS, QW) or $100,000 (MFJ) may exempt the greater of $6,000 or 65% of any federal,state or local pension income,up to a maximum of

Legislative Report $33,703 per taxpayer. Taxpayers withAGI under $25,000 (single, HH,QW) or $32,000 (MFJ) or $16,000 (MFS) may exempt $6,000 of private pension income. Taxpayers withAGI over these limits must reduce their private pension exemption dollar for dollar as income exceeds the limit. Taxpayers age 62+ or disabled with AGI under $85,000 (single,HH,MFS,QW) or $100,000 (MFJ) may exempt 65% of the taxable amount of SS but must reduce their public pension exemption by the amount deducted for SS. Taxpayers may exempt 15% of military pension income. MONTANA:Taxpayers with AGI under $30,320 may exclude $3,600 of pension income;forAGI above $30,320,the pension income exclusion is reduced $2 for every $1 of AGI above $30,320. RR benefits are exempt. Additional exemption of $2,040 if age 65+. Taxpayers age 65+ may exempt $800 of interest income reported on federalAGI,or $1,600 if MFJ. NEBRASKA: Tier I and II RR benefits are exempt. NEW JERSEY: Taxpayers age 62+ may exclude up to $10,000 (MFS), $15,000 or $20,000 (MFJ) of pensions, annuities and IRA withdrawals, provided gross income is not over $100,000. In addition, taxpayers age 62+ with earned income (from wages, net business profits,distributive share of partnership income and net pro rata share of S corporation income) of $3,000 or less, and with gross income not over $100,000, may exclude other nonpension retirement income up to the maximum exclusion amount.SS and RR benefits are exempt,reported as pension income. If ineligible for SS or RR, entitled to deduct an additional $3,000 (single,MFS) or $6,000 (MFJ,HH,QW).Military pensions are exempt. Additional $1,000 personal exemption for residents age 65+. If taxpayer can recover all civil service retirement contributions in the first three years, can use the three-year rule, in which annuities are not taxed until total employee contributions have been recovered. If not, must use the general rule method, in which a portion of annuity is excluded from taxation. NEW MEXICO: Taxpayers age 65+ or blind may qualify for additional exemption of $8,000 if federal AGI is $15,000 (MFS), $18,000 (single) or $30,000 (MFJ, HH, QW).The exemption reduces as income increases, with no exemption if income is over $25,500 (MFS),$28,500 (single) or $51,000 (MFJ).RR is exempt. If age 100+, exempt from state income tax, but only if centenarian cannot be claimed as a dependent by someone else. NEW YORK: In addition to the exemption for pensions of New York state, local governments and the federal government, an additional pension and annuity income exclusion of up to $20,000 is available to persons age 59-1/2+ as of January 1,2010. SS and RR are exempt. NORTH CAROLINA: Pursuant to the North Carolina Supreme Court’s decision in Bailey v. State of North Carolina, state may not tax certain retirement benefits received by federal civil service and military retirees or retirees of the state of North Carolina and its local governments,if the retiree has five or more years of creditable service as of August 12, 1989. If retirees in those categories did not have five years of service as of August 12,1989,they may deduct the amount included in federal taxable income or $4,000, whichever is less.This deduction also applies to retirement benefits paid to former teachers and state employees of other states and their political subdivisions regardless of the five-year service date. If MFJ and both spouses received federal,state or local government retirement benefits,each may deduct up to a maximum of $4,000.If an individual’s federal taxable income includes retirement benefits from a private retirement plan,a deduction of up to $2,000 may be available.If an individual received both government and private retirement benefits, the maximum deduction is the total amount included in federal taxable income or $4,000, whichever is less. Taxpayers age 65+ receive an additional standard deduction of $750 (single) or $1,200 ($600 each for a couple if both age 65+). NORTH DAKOTA:RR is exempt.May exclude 30% of net longterm capital gain and qualified dividends. OHIO:Retirement income credit available in an amount starting

at $25,if qualifying retirement income is at least $500,and maxing out at $200,if qualifying retirement income is $8,000 or more.Residents age 65+ are entitled to a $50 tax credit per return.Military pension income is exempt.SS and RR are exempt. OKLAHOMA: Each individual may exclude 80% of retirement benefits received from federal CSRS,including survivor benefits, paid in lieu of Social Security to the extent that these benefits are included in the federal AGI. Note: Retirement benefits paid under the Federal Employees Retirement System (FERS) do not qualify for this exclusion. However, for retirement benefits containing both a FERS and a CSRS component,the CSRS component will qualify for the exclusion. Each individual may exclude their federal civil service retirement benefits or Oklahoma state employment retirement benefits up to $10,000, but not to include the amount claimed under the CSRS exclusion above.Individuals may exclude the greater of 75% of their military retirement benefits or $10,000.SS is exempt. OREGON: Taxpayers age 62+ may qualify for retirement income credit (see worksheet regarding line 34) or elderly tax credit (40% of federal credit),but may not claim both.SS and RR benefits are exempt. Additional standard deduction if age 65+ of $1,200 (single,HH),$1,000 each spouse 65+ (MFJ,MFS and QW). PENNSYLVANIA: Retirement income is not taxed after age 59-1/2. RHODE ISLAND: RR is exempt. SOUTH CAROLINA: If below age 65, may deduct $3,000 of qualified retirement income. If age 65+, may deduct $10,000 of qualified retirement income. All individuals age 65+ are entitled to a $15,000 deduction from income,reduced by any deduction claimed for qualified retirement income.SS and RR are exempt. TENNESSEE: Tax applies only to certain interest and dividend income, not wages and salary or pension income. Any person age 65+ is tax-exempt if total annual income, from any and all sources,is $16,200 or less,or $27,000 or less for joint filers. UTAH:Taxpayers age 65+ may be entitled to a retirement credit of up to $450 ($900 MFJ),which is phased out at income levels of $25,000 (single) and $32,000 (MFJ). Taxpayers under age 65,born before January 1,1953,and with eligible retirement income may qualify for a credit up to 6% of eligible retirement income with a cap of $288, which is phased out starting at income levels of $25,000 (single) and $32,000 (MFJ). See http://incometax. utah.gov/credits/retirement-income.html. VIRGINIA: Taxpayers age 65+ whose birthdate is on or before January 1,1939,may claim an age deduction of $12,000 (available for each person or spouse if MFJ). If birthdate is on or between January 2, 1939, and January 1, 1946, the $12,000 age deduction is reduced by $1 for every $1 that adjusted federal AGI exceeds $50,000 (single) or $75,000 (MFJ,MFS). SS andTier I RR benefits are exempt. Additional personal exemption of $800 if age 65+ or blind.Long-term care premiums are eligible for deduction. WEST VIRGINIA: $2,000 of civil service and state pensions are exempt. Taxpayers age 65+ or surviving spouses may exclude the first $8,000 (single) or $16,000 (MFJ) of any retirement income. Additional modification for military pension income for the first $20,000.RR is exempt. WISCONSIN: Federal retirement payments are exempt from state income tax if:1) individual retired from the system before Jan 1, 1964; 2) individual was a member of the system as of December 31, 1963, retiring at a later date and the payments received are from an account established before 1964; or 3) individual is receiving payments from the system as a beneficiary (survivor) of an individual who met condition 1 or 2. If age 65+, may exempt up to $5,000 of retirement income if federalAGI is less than $15,000 or $30,000 (MFJ). Additional personal exemption of $250 if age 65+. SS and RR benefits are exempt. Military retirement pay and retirement pay related to service with the Coast Guard, the commissioned corps of the National Oceanic and Atmospheric Administration or the commissioned corps of the Public Health Service are exempt. ■ APRIL 2011 | NARFE

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www.ProtectAmericasHeart

ost people don’t give a second thought to their heartbeat. The heart pumps silently,

blood circulates, life goes on. In just the same way, most Americans take for granted the smooth functioning of their federal government. With no fanfare, federal workers go about their jobs every day in every state. Weather is predicted, mail is delivered, air-

planes take off and land safely – the very heartbeat of America is protected. Former Sen. Ted Kaufman, D-DE, who profiled 100 federal employees in speeches on the floor of the Senate over the past two years, aptly described federal employees as “silent sentinels of our nation’s wellbeing.” However, that is not the image of federal workers that is being portrayed in the now-raging debate about how to balance the federal budget and reduce the national debt. All too often in the media and in reports from Washington “think tanks,” federal workers are depicted as part of a “bloated federal bureaucracy” – overpaid, with overly generous health and retirement benefits. With the lingering effects of the recession, unemployment still hovering near 10 percent, an annual federal budget deficit in excess of $1 trillion and a national debt nearing $14 trillion, these erroneous reports are being latched onto by some members of Congress who are eager to make drastic cuts in federal retirement, pay and health benefits. To counter these unprecedented assaults on federal employees’ and annuitants’ earned benefits, NARFE is speaking out. With the backing of NARFE’s National Executive Board, the Association has launched an ambitious, integrated national advocacy and communications campaign to push back against the attacks on federal workers’ benefits and

reputations. We believe now, more than ever, is the time to “Protect America’s Heartbeat.”

GOALS, COMPONENTS The primary goals of the campaign are to stop or mitigate proposals harmful to federal employees and annuitants, and to increase awareness of the value of the public service performed by federal workers. NARFE also hopes to reap benefits in recruitment and retention of members as it demonstrates its leadership in the budget battle. The Association has contracted with M+R Strategic Services of Washington, DC, to provide supplemental expertise and staff for the campaign. The Protect America’s Heartbeat campaign has two major components: • Advocacy. As in any campaign, it will take boots on the ground to win the day. NARFE members will be asked to meet with their members of Congress as the budget debate continues. APRIL 2011 | NARFE

beat.org NARFE’s National Campaign to Fight Drastic Cuts in Federal Pay and Benefits Tell Us About Your Service!

o put a face on federal service, NARFE wants to hear your story. The Association has established a website for the“Protect America’s Heartbeat” campaign to collect stories from active and retired federal workers. At this site,we will ask you to tell us your position in the federal government and how long you have served or did serve. We also will ask you to tell us howAmerica would be different if there weren’t people serving in your position and about your proudest contribution to your country/ community during your service. The website also has a petition to sign to send a message to Congress to reject cuts to federal workers’ and retirees’ benefits.Please ask your colleagues and former colleagues who might not be NARFE members to sign the petition and tell their stories, too. To sign the petition to Congress and to tell us your story,go to:

www.ProtectAmericasHeartbeat.org In states and districts where members of key congressional committees reside, organizers will assist federations and chapters to rally members to take action. In addition, NARFE will make advocacy toolkits available to all federations and chapters. • Communications. NARFE is increasing its profile in the media, contacting reporters around the country to refute the false reports about federal employees and to talk about NARFE | APRIL 2011

the value of federal employees’ public service. The campaign will use all the other communications tools available to the Association, including e-mail messages, the NARFE website and social media. NARFE also will place advertising in targeted locations around the country. As with the advocacy component, communications efforts will be most intense in targeted states and congressional districts. And NARFE will make media toolkits available to all federations and chapters.

WHAT YOU CAN DO One of the most important parts of the campaign involves individual members. NARFE is asking all federal employees and retirees to go online to www.ProtectAmericasHeartbeat.org. At this site, federal employees and retirees can sign a petition that will be presented to Congress. And they can tell their stories about their public service. NARFE plans to use those stories in its media outreach (see sidebar, at left). “It is easy to bash nameless, faceless ‘federal bureaucrats,’ but it’s quite a different thing to lash out at the real people who do the important work of the federal government day in and day out in every part of this country,” says NARFE President Joseph A. Beaudoin. “These are the people we want to talk about in this campaign. That is why I am asking every NARFE member to go to www.ProtectAmericasHeartbeat.org today and tell us their story of service.” ♥

Managing Money

Funding Long-Term Care By Mark A. Keen, CFP®

he issues and potential impact of long-term care have been well-publicized over recent years – and for good reason. The average annual cost of a private room in a nursing home runs $80,000, creating the potential for disastrous financial consequences. Fortunately, there are insurance products that can be purchased to take some of the bite out of longterm care expenses. Let’s take a look at some of the options available, as well as their pros and cons. The most well-known are the stand-alone, long-term care insurance plans, such as the ones offered through the Federal Long Term Care Insurance Program (FLTCIP). Perhaps one of the best features of this type of long-term care insurance is the flexibility to customize the policy by selecting certain benefits, such as the daily benefit amount (DBA) and the benefit period, to meet your needs. The DBA is the maximum the policy will pay in a single day, and the benefit period is the length of time benefits will be paid if you receive benefits equal to your DBA each and every day. Together, the DBA and the benefit period determine the maximum amount the policy will pay out. For example, a $200 DBA and a three-year benefit would provide a maximum payout of $219,000. This is determined by multiplying the DBA by the number of days by the number of years ($200 x 365 x 3). Another great feature is the ability to protect your benefit from the erosive effects of inflation by adding an option that automatically increases

your DBA each year. With the FLTCIP, you have the choice between an automatic 4- or 5-percent annual increase. Stand-alone, long-term care insurance policies can provide substantial benefits, but they don’t come without drawbacks. For starters, they aren’t cheap. A 65-year-old purchasing an FLTCIP policy with a $200 daily benefit, a three-year benefit period and a 5-percent automatic inflation option will pay $3,804 per year. For a couple, both age 65, that’s $7,600 per year. Furthermore, although your premium cannot be increased because you are getting older, or for any health-related issues, it can be raised if you are among a group of enrollees whose premium is determined to be inadequate. This is what happened in 2009, when many FLTCIP participants experienced premium increases of up to 25 percent. Another drawback of stand-alone, long-term care insurance plans that many find troublesome is the fact that, if you never require long-term care, the premiums are not returnable. In other words, if you don’t use it, you lose it. Although the stand-alone, longterm care insurance policy is the most well-known, there are alternatives,

such as a permanent life insurance policy with a long-term care rider. The long-term care benefit on this type of insurance policy is typically based on the face amount of life insurance. A common formula for determining the long-term care benefit is 2 percent of the life insurance death benefit, paid monthly. For example, if the life insurance policy’s death benefit is $250,000, the monthly long-term care benefit would be $5,000. When you make a longterm care claim, you are receiving an acceleration-of-death benefit and reducing what your beneficiaries would ultimately receive. Continuing the previous example, if you receive $100,000 in long-term care benefits, the remaining death benefit payable to your beneficiaries is $150,000. The real beauty of this type of insurance is that the premiums won’t go to waste if you don’t make a long-term care claim. That’s because it’s a life insurance policy, and your beneficiaries will receive the money in the form of a tax-free life insurance death benefit. Another nice feature many will find attractive is that the premium can never go up. Nothing is perfect, and there are certainly drawbacks to this type of coverage as well. For starters, the premiums, generally, are greater than a stand-alone, long-term care policy. For

UNLIKE stand-alone, long-term care insurance plans, insurance policies with a long-term care rider typically lack any inflation protection.

APRIL 2011 | NARFE

example, a $250,000 Universal Life policy with a long-term care rider will run a 65-year-old male approximately $7,600 per year and a 65-year-old female approximately $6,500 per year. Alternatively, the policy could be funded with a lump-sum premium payment of approximately $140,000 for the 65-year-old male and approximately $120,000 for the 65-year-old female. Sounds like a lot, but it can be attractive when you consider that the policy will either pay out to you in the form of long-term care benefits or to your beneficiaries in the form of a death benefit. This type of insurance is likely best suited for someone who has excess funds (whether it’s excess income or money that will pass on to heirs), is

NARFE | APRIL 2011

confident that he or she will not need this money for retirement and is willing to partially self-insure. Unlike stand-alone, long-term care insurance plans, this type of insurance typically lacks any inflation protection. So, the long-term care benefit payable at the time of purchase would be the same amount that would be payable years later. There are other types of insurance products that provide a long-term care benefit as well – especially if you have money to put in as a lump-sum premium payment. These include other linked long-term care and life insurance products that put more emphasis on the long-term care portion by providing a larger long-term care benefit, as well as annuities offering a guaran-

teed long-term care benefit. Both can provide a residual benefit to your beneficiaries if you don’t use the money for long-term care. When it comes to long-term care planning, there is no silver bullet. But with some planning and creativity, you may be able to find a solution that appeals to you and fits your circumstances.

Mark A. Keen, CFP®, is president and owner of Bennett Financial Advisors in Fairfax,VA, and an investment adviser representative and registered representative of The Strategic Financial Alliance, Inc. (SFA). Securities and advisory services are offered through SFA. E-mail: mkeen@tributary advisors.com.

Live Well

Coping With Dry Mouth By Marilyn S. Radke, M.D.

ry mouth occurs when there is not enough saliva to keep the mouth wet. Everyone has dry mouth now and then when they are nervous, upset, under stress or taking certain medications. Having dry mouth all or most of the time is uncomfortable and can lead to tooth decay and infections in the mouth. Although many older adults have dry mouth, it is not a normal part of aging. Saliva keeps the mouth wet, helps digest food, protects teeth from decay, helps to heal sores in the mouth, and prevents infection by controlling bacteria, viruses and fungi in the mouth. Dry mouth can cause difficulty in tasting, chewing, swallowing and speaking. People with dry mouth may be unable to swallow dry food unless they drink fluid with the food. They need to take small bites of food and pay close attention to chewing and swallowing so they do not choke. Symptoms of dry mouth include: • Sticky, dry or burning feeling in the mouth; • Dry feeling in the throat; • Difficulty while eating and swallowing without extra fluids; • Mouth sores and cracked lips; and • Dry, rough tongue. Dry mouth results when the glands in the mouth that make saliva (salivary glands) do not produce enough saliva to keep the mouth wet. Injury to the head or neck can damage the nerves

that direct salivary glands to make saliva. Salivary gland function can be affected by medication, disease and cancer treatment. Hundreds of medications, including over-the-counter medicines, can cause the salivary glands to produce less saliva or change its makeup so that it does not work properly. Medications for

your physician may adjust the dosage or change the medication. If your salivary glands are not working properly but can still produce some saliva, then your physician or dentist may give you a medication to help the glands work better. Your physician or dentist may recommend that you use artificial saliva to keep your mouth wet. Your dentist

IF YOU have dry mouth,brush your teeth with an extrasoft toothbrush after every meal and at bedtime,and use warm water to soften the bristles even more. allergies, high blood pressure, urinary incontinence and depression often cause dry mouth. Diabetes, Parkinson’s disease and Sjogren’s syndrome (an autoimmune disease) can affect the salivary glands. Sjogren’s syndrome affects the salivary and tear glands, and causes decreased production of saliva and tears. It can occur alone or with another autoimmune disease, such as rheumatoid arthritis or lupus. The syndrome occurs more often in women than in men, and the average age is older than 50. Cancer chemotherapy may cause the salivary glands to produce thicker saliva that makes the mouth feel dry and sticky. Head and neck radiation therapy may cause the salivary glands to produce little or no saliva. Your dentist or physician can help to determine what is causing your dry mouth and suggest treatment. If your dry mouth is caused by medication,

may prescribe fluoride gel (like a toothpaste) to help prevent tooth decay. If you have dry mouth, the following actions may provide relief: • Drink water or sugarless drinks to make chewing and swallowing easier when eating; • Avoid drinks with caffeine, such as coffee, tea and certain sodas, because caffeine can dry out the mouth; • Do not use tobacco or alcohol be-

To Learn More

or more information, write to the National Institute on Aging, Building 31, Room 5C27, 31 Center Drive,MSC 2292,Bethesda, MD 20892; or call the National Institute on Aging Information Center at 800-222-2225;or visit the website at www.nia.nih.gov.

APRIL 2011 | NARFE

Technology Breakthrough

Marilyn S. Radke, M.D., is board certified in preventive medicine and practices in Atlanta, GA.

NARFE Is on Facebook “Like” our page on Facebook today! After logging in to Facebook,search for “NARFE National Headquarters” and click “Like.” Check out the latest posts and discussions.

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cause they dry out the mouth; • Chew sugarless gum or suck on sugarless hard candy to stimulate the flow of saliva; • Avoid salty and spicy foods that may cause pain in a dry mouth; and • Use a humidifier to promote moisture in the air while you sleep. If you have dry mouth, do the following to keep your mouth healthy: • Brush your teeth with an extrasoft toothbrush after every meal and at bedtime, and use warm water to soften the bristles even more; • Gently floss your teeth daily, and see your dentist immediately if your gums bleed or hurt; • Use toothpaste containing fluoride; • Avoid sticky, sugary foods, and brush your teeth immediately afterwards if you do eat them; • Do not use mouthwashes containing alcohol because alcohol dries out the mouth; and • Visit your dentist for a checkup at least twice a year. If you have dry mouth, see your dentist or physician for evaluation and treatment to ease your discomfort and keep your mouth healthy.

NARFE | APRIL 2011

Alzheimer’s Update

NARFE Tops $9Million Goal!

uring the first month of its 90th Anniversary year, NARFE reached its goal of raising $9 million for Alzheimer’s research. As of January 31, 2011, NARFE members had donated $9,017,483. In 2011, NARFE began its 26th year of raising funds for Alzheimer’s research in partnership with the Alzheimer’s Association. NARFE’s extraordinary giving record makes it the Alzheimer’s Association’s largest membership organization donor. “Who would have dreamed when this program started in 1985 with a goal of raising $500,000 that 26 years later we would celebrate meeting a goal of $9 million?” said Barb Pretzer, chair of the NARFE-Alzheimer’s National Committee. “Well, let the celebration begin! We have met our $9 million goal, and we did it in less than two years.” NARFE reached its previous goal of $8 million in total giving in February 2009.

NARFE members contributed for Alzheimer’s research:

“Alzheimer’s is a heartbreaking disease that has touched the lives of so many of our members in one way or another,” said NARFE President Joseph A. Beaudoin. “Our members can be justifiably proud of their 25-year commitment to finding a cure for this dreaded disease or slowing the progress of its symptoms.” Harry Johns, president and CEO of the Alzheimer’s Association, also hailed the achievement. “We congratulate NARFE on reaching this impressive milestone,” said Johns. “With your help and dedication, we have more power and potential to fight Alzheimer’s disease. We are proud to have NARFE’s support now and into the future.” Pretzer noted that NARFE donations have supported 49 different scientific research projects. One hundred percent of NARFE contributions go to Alzheimer’s research. “Our support of the Alzheimer’s Association has already made a real dif-

ference in the lives of people across the country,” Pretzer noted. “We all know a face that goes with the numbers.” Currently, more than 5.3 million Americans have Alzheimer’s disease, which ranks as the nation’s sixth leading cause of death. While deaths attributed to Alzheimer’s disease have increased, other causes of death, such as stroke, prostate cancer, breast cancer, heart disease and HIV, have declined. “I thank all of you and give you my congratulations on this amazing accomplishment,” Pretzer said. “More important, I thank you for being a part of the reason that a day will come when we have a world without Alzheimer’s. We can be very proud of the role NARFE members have played toward seeing that day.” Delegates at the 2010 NARFE National Convention in Grand Rapids, MI, approved a new goal of raising $10 million for Alzheimer’s research by the end of 2012. ■

SUPPORT ALZHEIMER’S RESEARCH

$9 Million Fund

$9,017,483* *Total as of January 31, 2011 100% of all contributed funds go to Alzheimer’s research. If you have any questions, write to: National Committee Chairman Barb L. Pretzer, 4817 Rockridge Ct. Manhattan, KS 66503

Enclosed is my NARFE Alzheimer’s contribution: $ ___________. Every cent that is contributed is used for research. Please circle:

Mr.

Mrs.

NARFE-Alzheimer’s Research and mail to: Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633

Ms.

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APRIL 2011 | NARFE

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Questions & Answers NOTE: The following Questions & Answers were compiled by Retirement Benefits Service Department staff. These are real questions received by the Department and real answers, based on the members’ personal circumstances. The answers are not universal and may include information that is relevant to the correspondent’s particular situation. NARFE does not provide legal advice or assistance, does not provide financial planning advice or assistance, and does not provide tax advice or assistance. For legal, financial planning or tax advice/assistance, NARFE recommends members contact an attorney, financial planner or certified public accountant/tax adviser.

ACTIVE EMPLOYEES Lump-Sum Annual Leave LUMP-SUM ANNUAL LEAVE QUESTION: I am under the Civil Service Retirement System and am facing mandatory retirement in the second week of January 2012.I anticipate finishing 2011 with 448 hours of annual leave.January 1,2 and 3 would be my ideal retirement dates.In 2011, the last pay period ends on the last day of the year. I am now looking at December 31, a Saturday, as the retirement date on my paperwork in order to receive a lump-sum payment for my 448 hours of annual leave.Do you see any problem with that date,given the information provided? Also, I believe that the lump-sum payment, which will be a direct deposit sometime in January 2012, would be counted as 2012 income and not for the 2011 tax year.Is this correct? 30

Response: We do not see any problem with retiring on the last day of the year. We would remind you to work with your agency human resources office or retirement counselor beginning six months in advance to ensure that all of your retirement-related paperwork and forms have been located, and you have a firm estimate of what you will be receiving in retirement. Your lump-sum payment for unused annual leave is taxable in the year it is received.

SERVICE COMPUTATION DATE QUESTION: I transferred from the Department of Veterans Affairs to the Defense Department,and my service computation date was not carried over. How do I fix this? Response: The service computation date provides a date to determine easily how many years and months of creditable federal service an employee has completed. Your human resources office would be responsible for correcting this if the date is wrong, so you will need to make an appointment to find out what happened. While it probably will be sorted out in the long run without your involvement, it is better to address the matter as soon as possible.

Response: There was a new provision in a law that was passed October 28, 2009. Section 1903 pertains to computation of Civil Service Retirement System (CSRS) annuities based on part-time service. Previously, individuals retiring under the CSRS who were employed on a parttime basis during their final three years of service had their annuities computed using two different high-three average salaries. The annuity calculation for service performed on or after April 7, 1986, uses what is referred to as a “deemed high-three” average salary, which is computed using the full-time equivalent rates of pay for the high-three period. The annuity calculation for service performed before April 7, 1986, used a high-three average salary based on the highest rates of the pay actually received by the individual, which may be for a period prior to the final three years of service. In other words, under law prior to this provision, one highthree average salary was based on the pay actually received, and the other was based on pay the individual would have received assuming he or she worked full time (the deemed high-three). Section 1903 provides that the “deemed highthree” average salary will be used for all service, regardless of when it was performed. Section 1903 does not change the other provisions applicable to calculation of annuities involving part-time service. The provision applies only to annuities based on a separation from service occurring on or after October 28, 2009.

QA &

PART-TIME EMPLOYMENT QUESTION:I recently had my retirement pay calculated. I worked part time during my first three years of employment, approximately 25 hours per week. I subsequently have had 13 years of full-time federal employment. It appears that I will incur a 10-percent penalty in my retirement pay because of those part-time years. Do you know if that will always be the case, no matter how long I remain a federal employee?

FERS ENROLLMENT QUESTION: Are new employees automatically enrolled in the Federal Employees Retirement System APRIL 2011 | NARFE

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Questions & Answers NARFE SERVICE OFFICERS are available to answer questions and to (FERS),or is the employee required to make an election? Response: All new federal employees first hired on or after January 1, 1987 (and most employees first hired after December 31, 1983) are automatically covered by FERS.

RETIREES MEDICARE PART B QUESTION:Please provide information on Medicare Part B that would help me decide if I should enroll. Response: Medicare Part B covers doctors’ services, outpatient hospital services, durable medical equipment, and a number of other medical services and supplies that are not covered by Part A. When deciding whether to enroll in Medicare Part B (if you are not entitled to

assist in helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. Call NARFE toll-free at

800-456-8410 for the nearest service officer. NARFE Service Centers are also available in some areas. Use the Service Center listings on the NARFE Web site, www.narfe.org.

Social Security), you should take into account your Federal Employees Health Benefits Program (FEHBP) plan. Medicare-eligible retirees enrolled in feefor-service plans would find that Medicare pays first for most services. The FEHBP plan picks up the difference or, in some cases, pays for the services not covered by Medicare. Medicare and the FEHBP plan combine to provide nearly complete coverage for all expenses. Also, fee-for-service plans waive most of their deductibles, coinsurance and co-pay-

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ments (except for co-payments for prescription drugs) for Part B enrollees. As a result, FEHBP fee-for-service plan enrollees with Parts A and B find that they have little or no out-of-pocket expenses. You should compare your plan to determine what is best for your needs. Contact your FEHBP plan and ask to speak with a representative. You also should request a brochure to see if it states that this may involve lower co-payments and coinsurance for medical services. Also take into consideration your health and your family history. Carefully compare any reduction in co-payments and coinsurance that you pay to the cost of Medicare Part B, generally $115.40 per month for 2011, plus the 10-percent penalty for each 12 months you are not enrolled. Since you would be paying $1,384.80 in 2011 in Medicare Part B premiums, you would have to compare this to any co-payments or coinsurance you would have without the insurance. You would generally be subject to a 10-percent penalty for each 12 months you are not enrolled. You can avoid the Part B penalty by applying at age 65. Most retirees with Medicare Part A and Part B enroll in their fee-for-service plan’s Standard option. The High option usually does not cover enough additional services to justify paying the extra premium. Choosing the Standard option rather than the Basic option, however, offers the best coverage for retirees. Retirees should review Standard option and Basic option coverage to determine whether co-payments, deductibles and APRIL 2011 | NARFE

NARFE now offers an online retirement calculator and other financial planning tools for members only.Find out more about this new membership benefit at www.narfe.org.

coinsurance are waived for Medicare enrollees, and whether the prescription drug benefits meet their needs. For more information on Medicare Part A or Part B, contact Medicare at 800-633-4227 or visit the Medicare website at www.medicare.gov. One final reminder. While we may recommend that some members enroll in Medicare at age 65 (because the combination of Medicare and FEHBP provides excellent coverage), enrollment in Part B is not mandatory.

MEDICARE DEDUCTIONS QUESTION: As a retiree under the Civil Service Retirement System,do I “owe” 1.75 percent of my monthly annuity to Medicare and must I set up this deduction now to be eligible when I turn age 65? Response: Deductions for Medicare Part A are taken only from wages and selfemployment, not annuities or other sources of income. On the other hand, if you decide to enroll in Medicare Part B, you would need to arrange to have the payment deducted from your annuity.

SS DISABILITY QUESTION: I am age 62,and my Federal Employees Retirement System disability retirement benefit has been recalculated to a regular annuity.I am still on Social Security disability.Will Social Security offset the amount that I will be getting in my annuity? Response: No. Social Security will not offset the amount that you will be getting in your annuity. NARFE | APRIL 2011

SS & MEDICARE DEDUCTION QUESTION: Are Social Security and Medicare taxes withheld from Federal Employees Retirement System (FERS) annuity and supplement checks for retired law enforcement officers? Response: No. Social Security and Medicare taxes are not withheld from FERS annuities or FERS supplement checks.

SS SURVIVOR’S BENEFITS QUESTION: Both my wife and I started taking Social Security when we were age 62. I receive $1,663 in gross Social Security payments a month, and my wife receives $136.I worked in private industry and retired. My wife worked for the Defense Department and retired under the Civil Service Retirement System (CSRS),never paying into Social Security.Based on these figures, if I died today, what would my wife be entitled to? Response: Your wife’s benefits based on your Social Security entitlement would be affected by the Government Pension Offset. Any Social Security spousal benefit to which she would be entitled would be reduced by $2 for every $3 she receives in her CSRS annuity.

BUYOUT REPAYMENT QUESTION: I recently retired from the U.S. Postal Service under the incentive/buyout offer.If I seek another government position, would I be required to pay back the buyout? Response: Yes. If you received a buyout and later accepted a paying job with the federal government within five years of

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NEW the date of separation on which that buyout is based, including work under a personal services contract or other direct contract, you must repay the entire amount of the buyout to the agency that paid it to you before your first day of re-employment.

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QUESTION: My father,a retired federal employee, passed away at age 79 last October. He and my mother divorced in January 1985,and she never remarried.He remarried,but his wife passed away in January 2009. He has two adult children from his first marriage.Would his former spouse be entitled to any benefits ahead of his children?There is no beneficiary and no court order on file. Response: His former spouse would not be entitled to any retirement benefits. Whether she would have title to any Federal Employees’ Group Life Insurance benefits would depend on the individual he had designated as his beneficiary.

SS & INCOME LIMITS QUESTION: My monthly Social Security benefit was recently reduced by $250.I was told that I exceeded the Social Security income limitation because of the profit made from the sale of a house that I inherited from my mother.Is this accurate? Response: The Social Security earnings limit only applies to earnings from wages or self-employment, and then only for those individuals who haven’t reached full retirement age. In the ordinary course of events, income received through the sale of a home would not be considered to be earnings. However, if you reported any portion of the proceeds as earnings on your federal income tax return by mistake, that amount would be subject to the earnings limit. ■ APRIL 2011 | NARFE

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he Office of Personnel Management has announced an Open Season for enrollment in the Federal Long Term Care Insurance Program (FLTCIP) from April 4 through June 24, 2011. Active federal and U.S. Postal Service employees and their spouses/same sex partners, and active members of the uniformed services and their spouses who are not currently enrolled in the FLTCIP will be able to apply for coverage with abbreviated underwriting. Online applications can be downloaded at www.LTCFEDS.com/apply. If you are interested in the program, NARFE suggests that you contact your agency benefits officer for information. This is not a general Open Season for current FLTCIP enrollees. Current enrollees can change their coverage at any time, and nonenrolled retirees and qualified relatives can apply for enrollment at any time, but they must use the full underwriting application.

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hose federal, state and local government retirees who took advantage of the $250 tax credit on their 2009 federal income tax returns will notice that the credit is not available for their 2010 returns. NARFE was instrumental in getting the 2009 credit.However, the lame-duck session of Congress in late 2010 did not approve the same provision for 2011, and the tax credit for government retirees expired at the end of 2010. APRIL 2011 | NARFE

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Card#

Charge my: K VISA

K MasterCard

K Discover®/NOVUSSMCards

Expiration Date

(Men’s) ____ Therapeutic Wrist Support(s) @ $9.97 $

CA residents must add 8.25% sales tax $ Add $4.95 Shipping & Handling 1st Item FREE Shipping & Handling when buying 2 or more $ Please Print Clearly

Name Address

TOTAL

$ City

Dream Products, Inc.

Zip

412 DREAM LANE, VAN NUYS, CA 91496

Vice President’sViews NARFE Establishes IT Committee By Paul H. Carew National Vice President natvp@narfe.org

he NARFE Information Technology (IT) Advisory Committee (NIAC) is a special committee established by the National Executive Board (NEB) to provide expert advice and assistance on the latest informa-

tion technology and its applicability for NARFE. Members are Committee Chair Charles Pratt, GA; Patrick Dempsey, MD; Robert Drake, VA; and William Leatham, FL. NIAC is charged with articulating a comprehensive 21st-century IT strategic vision for the Association, to include: • Review all information technology policies and procedures, and recommend revisions where appropriate; • Analyze the Association’s major information systems and recommend upgrades where applicable; • Evaluate all principal data entry centers in terms of effectiveness and efficiency, and recommend necessary

operational modifications; and • Review communications processes and procedures between Headquarters, federations and chapters, with an eye toward developing a more integrated strategy. NIAC held its first meeting at Headquarters in January and conducted an intensive review of current policies and procedures, and lengthy, in-depth interviews with department directors and staff. An interim status report was presented to the NEB in March, with a proposal to provide a draft report to the NEB and federation presidents at their joint meeting in Reno, NV, in July. ■

From the Secretary’s Desk Membership Campaign Launched By Elaine Hughes National Secretary natsec@narfe.org

t is certainly not news that NARFE’s membership is experiencing a serious decline and has been for several years. While NARFE’s importance and relevance continues to grow significantly for the more than 2.47 million active federal employees and 1.9 million retirees, there is a serious and troubling disconnect in our ability to attract and keep members engaged in our organization. Given the ever-increasing threats and attacks on not only the earned benefits of federal workers and

retirees but also the integrity and pride associated with a federal career, we have launched the initial phase (planning) of our membership growth campaign. The National Executive Board approved the establishment of two committees, one for recruitment and one for retention. Each committee is comprised of five NARFE members. Establishing the committees brings in a wealth of experience and information, and begins to satisfy our desire to be more inclusive in the work that we do. Members of the committees are: • Recruitment: Mary Burkett, MN; Jerry Hall, CA; Peggy Johnson, WI; Noreen Morgan, KY; and Kay Ryan, ID. • Retention: Jack Elrod, TX; Frank Impinna, CO; Don Ross, CA; Joseph Staiano, GA; and Rich Wilson, WA. To work with committee members,

we engaged the services of Marketing General, Inc. (MGI) to assist and guide us through the process of creating a viable membership growth plan. MGI has a successful track record in helping associations such as ours to grow brand awareness, membership and membership engagement. With the combined efforts of both committees and MGI, we anticipate a well thought out, integrated approach to membership growth that will work well in our 54 federations. This plan is well on its way to fruition, and, as we proceed, we will keep members apprised of our progress with a presentation to the federation presidents in Reno, NV, in July. This can be a daunting and challenging assignment, but I believe that it will take us on a journey of great importance in finally realizing a sustainable and viable membership growth campaign. Stay tuned! ■ APRIL 2011 | NARFE

Report From the Regions Preserving NARFE By Helen L. Zajac Region VIII Regional Vice President hlz17@aol.com

he recently publicized plight of the sole floating survivor of the SpanishAmerican War, the USS Olympia, has come to the attention of a NARFE leader in the San Francisco Bay area, as well as several NARFE chapters. The flagship of Admiral Dewey needs extensive repairs, or it will be scrapped or scuttled. These NARFE members are trying to raise awareness and interest in

the preservation of this ship by moving it to the San Francisco Bay area from its current dock in Philadelphia. Launched in 1892 in San Francisco, the Olympia was outfitted at Mare Island Naval Shipyard and maintained by employees of the federal public shipyards. She served proudly through the Spanish-American War and World War I, carrying the latter war’s Unknown Soldier to the United States. The Olympia was decommissioned in 1922. The Olympia story reminds me of how we need to preserve NARFE, with renewed dedication to the only Association that has, for 90 years, led the fight to preserve our benefits and will continue to do so as we face renewed threats. Much of what we take for granted in the federal community is because of NARFE and the

efforts of those members who have gone before us. Our membership peaked in 1995 with nearly 500,000 members. But it is unfortunate that, due to our success in preserving federal benefits, many members have been complacent and have not renewed their memberships. We all need to be united in our efforts to stave off the attempts of Congress to reduce, delay or even deny our earned benefits. It is more important than ever that we retain our members and spread the word about NARFE to the 4.6 million members of the federal community. Only you can help preserve your hardearned benefits. For more information on the USS Olympia and how you can help preserve this national historic landmark, contact drkelly107@gmail.com. ■

Open an account for your kids or grandkids.

™

Offering: Kids' Savings accounts for children 12 and under that earns more interest than a traditional savings account. Teen Checking accounts for teens 13 to 18 with unlimited debit card transactions. Youth Share Certificates for those 18 and under. Let the savings begin!

For more information, visit NARFEpremierFCU.org or call 800.328.1500. Your savings are federally insured up to at least $250,000 by the NCUA and backed by the full faith and credit of the United States Government.

APRIL 2011 | NARFE

Join

NARFE

Who can join?

Today!

To apply:

Membership is open to civilians in any agency of the federal or D.C.* governments including: • Retirees • Active federal employees • Spouses and former spouses of active and retired federal employees • Former employees eligible for deferred annuity • Survivors of those eligible to join NARFE

• Complete the application below. • Enclose payment information, bill pay, check or money order payable to NARFE, or request to be billed. • Or go to our Web site at www.narfe.org. • Or call us at 800-627-3394 and join today! *Prior to October 1, 1987

Enrollment includes membership in a local chapter and the national association, plus a subscription to NARFE’s monthly publication, NARFE magazine.

NARFE MEMBERSHIP APPLICATION For Active and Retired Federal Employees 1. Choose all that apply: Retiree Spouse Survivor

Active employee Former spouse Former employee

2. Also enroll my spouse __________________________

www.narfe.org

Contact Information:

Full Name: Mr./Mrs./Miss/Ms.

full name

3. Please enroll me in NARFE chapter ______________

Street Address

4. __________ $45 x __________ Membership Fee # of People Per Person Enrolling

City/State/ZIP

= __________ Total Payment

Total payment (check, bill pay or money order payable to NARFE) Bill me (Membership starts when payment is received) Charge to my credit card The first year membership fee includes national and chapter dues.

Credit Card Information: MasterCard Card type: Discover

VISA AMEX

Card no. ___________________________________________ Expiration Date ________________ (MM)

(YY)

Name on Card (Print) ________________________________ Signature ____________________________ Date __________ NARFE | APRIL 2011

Apt./Unit

Phone Number E-mail Address Date of Birth Spouse’s Date of Birth (if applicable) Recruiter’s Membership and Chapter Number

MAIL TO:

NARFE Member Records 606 N. Washington St. Alexandria, VA 22314-1914 Fax: 703-838-7783

1Q 41

NARFE Dues Withholding Application Retired Federal Employees Only If you are a Retired Federal Employee and you would like your NARFE dues to be deducted from your annuity payments, fill out the form below.

Dues Withholding Application (Retirees Only) Fill out this form completely and mail to: Attn: Member Records, NARFE, 606 N. Washington St., Alexandria, VA 22314 (Do Not Send Money With This Form). (Please Print) —

—

Civil Service Annuity Number

Social Security Number (9-digits)

(Include prefix CSA or CSF) (Include any applicable suffix)

(Mr., Mrs., Miss, Ms.) Address

Telephone

City, State, ZIP

E-mail

Date of Birth

NARFE Membership Number

NARFE Chapter Number

Authorization 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 make below 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 make below:

Do You Authorize Your Spouse’s Dues to Be Withheld from Your Annuity? If YES, enter your spouse’s name and membership number below.

Name

Number

❑ Yes

❑ No

You authorize: Annual NARFE dues of $34.00 plus Chapter dues of record to be withheld annually.

I understand that this authorization shall be valid until NARFE receives & processes my written notice of cancellation in accordance with its agreement with the Office of Personnel Management & that any disputes regarding this authorization shall be a matter between NARFE & 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 & gifts or contributions to NARFE are not deductible as charitable contributions for federal income tax purposes.

APRIL 2011 | NARFE

NARFE News NARFE Establishes eNARFE Membership By Paul H. Carew, National Vice President

or NARFE to sustain the lobbying muscle required to protect our earned benefits before Congress, especially during this perilous time, we must increase membership. The future of NARFE rests with recruiting and retaining both active federal employees (AFEs) and recent retirees. This is easier said than done. AFEs and recently retired members have told us that NARFE is missing out on recruiting and retaining this cohort because we don’t understand and recognize their values and appreciate their modes of communication. For AFEs and recent retirees, principally baby boomers, formally structured organizations espousing traditional rules of order and social interaction through groupings, such as chapters and clubs, are considered artificial, old-fashioned and of little or no interest. Minimal hands-on organizational involvement is the name of their game. Cyber-based interaction

and high-tech communications are their preferred modus operandi. Sadly, as the older generation of NARFE members continues to pass from the scene, AFEs and recent retirees who should be stepping up to grow the membership and assume leadership roles are mostly staying away. Inevitably, membership falls, chapters close and NARFE’s vitality wanes. A solution to this problem is to provide a membership category that addresses the objections of the AFEs and boomers, and focuses on their lifestyle and communication prerogatives: an eNARFE membership. ENARFE membership is totally online and paperless, except for the magazine (it also is online for convenience). The prospective eNARFE member will be enrolled in the eNARFE chapter at Headquarters (Chapter 2363 – The Chapter Without Borders), and will have access to the chapter blog and the eNARFE website populated with current information and timely articles of interest to AFEs

and recent retirees. The eNARFE membership is a recruiting and retention mechanism that is designed to parallel but not displace the traditional NARFE membership process. It is proffered solely to attract potential new members not interested in participating in NARFE chapter life. Organizations similar in structure to NARFE have long-since offered this type of membership. Our time has come.

NARFE President Joseph A. Beaudoin, right, presents charter for eNARFE Chapter 2363 to David Snell, center, chapter president and director of the NARFE Retirement Benefits Service Department; and Chuck Timanus, left, chapter secretary/treasurer and NARFE director of public relations.

NARFE-FEEA PROGRAM FUND CONTRIBUTION FORM

YES! 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 and grandchildren of federal civilian retirees and current federal employees who are NARFE members.

❏ ❏

NARFE-FEEA Disaster Fund NARFE-FEEA Scholarship Fund

Amount $ Amount $

Name

NARFE | APRIL 2011

Make check payable to: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund. Please mail coupon and check to:

FEEA

Address City

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

State

ZIP

3333 S. Wadsworth Blvd., Suite 300 Lakewood, CO 80227

Out & AW bout ith the Chapters

Visit our online gallery at www.narfe.org. Click on NARFE magazine.

Officers of Chapter 352 in Greater Paradise/Oroville, CA, celebrated NARFE’s 90th Anniversary with a cake, held by H. Ray Harrington, chapter president.

Chapter 647 in Boca Raton, FL, hosted Rep. Ted Deutch at its January meeting. Pictured are: from left, Lee Rogers, president; Deutch; and Charlotte Dubnick.

Celebrate NARFE’s 90th

ARFE has 90th Anniversary merchandise for sale: • 90th Anniversary Book, NARFE: Celebrating 90 Years of Service, 1921-2011, $10.

• 90th Anniversary PowerPoint Presentation, $5; • 90th Anniversary Lapel Pin, $3. NARFE President Joseph A. Beaudoin, center, helped Chapter 258 in Bethesda-Chevy Chase, MD, celebrate NARFE’s 90th Anniversary at the chapter’s February 8 meeting, which also was the 90th birthday of Laurin Knutson, chapter 2nd vp, left. Also pictured are Judith Welles, second from left, author of a book about Cabin John, MD (held by Beaudoin); Evelyn Kirby, Maryland Federation 1st vp; and Gordon Brown, chapter president.

NARFE President Joseph A. Beaudoin, right, presents a $380 check to Steve Bauer, executive director of the Federal Employee Education & Assistance Fund (FEEA), to honor a pledge to donate $5 for every new NARFE member obtained through a FEEA e-mail solicitation.

To order, go to www.narfe. org, click on Leadership at the top of the page, then click on NARFE 90th Anniversary Merchandise.

Chapter 672 in New Braunfels, TX, celebrated NARFE’s 90th Anniversary in February with a review of NARFE milestones and a special cake. Chapter officers pictured are: from left, Walter E. Penk, vice president; Loretta Carter, hospitality; Dorothy Creswell, president; John Creswell, treasurer; and Daisy Richardson, secretary.

To submit a photo: E-mail it to rl@narfe.org or send it by postal mail to NARFE Headquarters, ATTN: Out & About. 44

APRIL 2011 | NARFE

National Active and Retired Federal Employees Association 2011 Scholarship Application

✄ Cut Along Dotted Line ✄

All NARFE Scholarship Applications for the 2011 competition must be postmarked by April 30, 2011. Photocopies of this application are acceptable. Please do not fold or bind any pages with staples. Please check each box to ensure that your application packet is complete: ❏ Essay Topic: “In President John F. Kennedy’s inaugural address in 1961, he stated: ‘Ask not what your country can do for you – ask what you can do for your country.’ With this in mind, and if you were inspired to consider a career in federal service, what type of service would you prefer and why?” (Essay must be typed, double-spaced, and not exceed two pages.) ❏ Written recommendation/character reference from a teacher or counselor. Recommendation must be submitted together with application package. ❏ Full transcript including fall/winter 2010 grades. All applicants must have a cumulative grade point average (GPA) of at least 3.0 on an unweighted 4.0 scale. (Report cards and photocopies are acceptable.) ❏ Check here if transcript is being mailed separately by the school. If checked, must be postmarked by April 30, 2011. ❏ List and briefly describe awards and/or community service activities (not to exceed two pages). ❏ Copies of American College Testing (ACT) or Scholastic Aptitude Testing (SAT), or other entrance examination scores as applicable. ❏ Your e-mail address (your application receipt will be sent to this e-mail address; please add “confirmation@ feea.org” to your address book). If you do not provide an e-mail address, please include one stamped, self-addressed envelope in your application packet. Please note: All materials submitted with the application will become the property of FEEA and will not be returned under any circumstances. If needed, make a copy of the information for yourself before mailing.

Please complete the following. Incomplete applications and applications sent to NARFE Headquarters will not be considered. Student’s Name: Complete Home Address: _________________________ Home Telephone:

(

)

E-mail Address: Applicant’s Grade Point Average. (Applicants must have a cumulative grade point average [GPA] of 3.0 on an unweighted 4.0 scale): College or University (planning to attend): (Must be a college freshman by fall/winter 2011)

If taking college courses while in high school, please indicate

Yes ____

No ____

NARFE Member’s Name: Relationship to Applicant:

❏ Father

NARFE Member No.:

❏ Mother

❏ Grandfather

❏ Grandmother

Chapter No:

Member’s Complete Home Address:

Telephone:

E-mail address:

All of the above materials (except transcript – if necessary) must be mailed, unfolded, in the same 9” x 12” (or larger) envelope postmarked no later than April 30, 2011, to: NARFE Scholarship Award, 3333 S. Wadsworth Blvd., Suite 300, Lakewood, CO 80227 NO STAPLES OR PAPER CLIPS, AND DO NOT FOLD NARFE | APRIL 2011

2011 NARFE SCHOLARSHIP PROGRAM ELIGIBILITY AND APPLICATION PROCEDURES

• Children, grandchildren, great-grandchildren and stepchildren of ALL current NARFE members are eligible to apply. Applicant must be a high school senior planning to attend college full time by fall/winter 2011. A total of 60 scholarships of $1,000 each will be awarded.

• All applications must be postmarked by April 30, 2011. • All applicants must have a cumulative grade point average (GPA) of at least 3.0 on an unweighted 4.0 scale. Provide full transcript, including fall/winter 2010 grades. Photocopies are acceptable. If mailed by school – still must be postmarked by April 30, 2011.

• Provide copies of American College Testing (ACT) or Scholastic Aptitude Testing (SAT), or other entrance examination scores as applicable.

• All applicants must provide a written recommendation/character reference from a teacher or counselor. Recommendation on school letterhead must be submitted with application package.

• All applicants must list and briefly describe awards and/or community service activities on a • Applicants should provide an e-mail address (your application receipt will be sent to this e-mail address; please add “confirmation@feea.org” to your address book). If you do not provide an e-mail address, include a stamped, self-addressed # 10 envelope with your application. Qualified applicants will be notified by August 31, 2011. Incomplete applications will not be acknowledged.

• All applicants must submit a typed, double-spaced essay not to exceed two pages on the topic: “In President John F. Kennedy’s inaugural address in 1961, he stated: ‘Ask not what your country can do for you – ask what you can do for your country.’ With this in mind, and if you were inspired to consider a career in federal service, what type of service would you prefer and why?”

• Please do not bind any pages with staples or paper clips.

• Please mail all materials (except transcript, if necessary) in one package, unfolded, in a 9” x 12” (or larger) envelope postmarked by April 30, 2011. The NARFE Scholarship Program is administered by the Federal Employee Education & Assistance Fund (FEEA) and is made possible by your tax-deductible contributions to the NARFE/FEEA Scholarship Fund, 3333 S. Wadsworth Blvd., Suite 300, Lakewood, CO 80227. (To donate, see form, p. 43.)

For more information, obtain a copy of NARFE publication F-105

A Guide to

NARFE’S ANNUAL SCHOLARSHIP AWARDS PROGRAM To get your copy, send an e-mail to natvp@narfe.org; download it from the NARFE Web site, www.narfe.org; or call Headquarters and ask for the Office of the National Vice President. May also be ordered using the F-18.

A Guide To

NARFE’S ANNU AL SCHOLARSH IP AWARDS PROGRAM

INVESTING IN OUR

FUTURE APRIL 2011 | NARFE

✄ Cut Along Dotted Line ✄

separate page. Provide enough information so the selection committee will know what you did, but do not exceed two pages.

Letters eChapter Meets Today’s Needs

REMINDER:

s the president of the Virginia Federation of Chapters (VFC), I have become acutely aware of the fact that increasing the involvement of active federal employees (AFEs) and recent retirees, at both the chapter and federation levels, is critical to the efforts of our organization. It is common knowledge that many of these AFEs and recent retirees do not want to belong to a specific chapter. Many of the AFEs and recent retirees are members of “Generation Y.” They grew up with technology and rely on it to perform their jobs better. Armed with BlackBerrys, laptops and cell phones, Gener-

Deadline for the NARFE Scholarship competition is April 30. Details on pp. 45-46.

ation Y is plugged in 24 hours a day, seven days a week. Members of this generation prefer to communicate through e-mail and text messaging rather than by face-to-face contact.

As the VFC president, I am extremely excited about being a major player in the effort to meet the needs of these AFEs and recent retirees, as well as being able to show them the benefits of NARFE. By issuing a charter for online Chapter 2363, NARFE has moved into the 21st century and is ready to meet the needs of the constituency that we are dedicated to serve. (See story, p. 43.) William (Bill) Shackelford, Centreville, VA

Letters to the editor may be edited for grammar, clarity and length. All letters must be signed. Send by e-mail to rl@narfe.org or by postal mail to NARFE Headquarters, ATTN: Letters to the Editor.

Presenting NARFE’s

Limited Edition 90th Anniversary Book

ars of Service Celebrating 90 Ye 1921-201

Only $10

Order your copy of NARFE’s 90th Anniversary Book today! Clip and mail to: NARFE 90th Book, 606 N. Washington Street, Alexandria, VA 22314-1914 Name __________________________________________________________________ Address ________________________________________________________________ City __________________________________________State ______ZIP ___________

Number of Books

____ x $10 = __________ (includes shipping & handling)

Member ID# (As it appears on NARFE magazine label) ________________________

Tax (if applicable) = _______

❏ Charge to my credit card

Virginia residents must add 5% tax ($0.50 per book)

❏ MasterCard

❏ Visa

❏ Discover

❏ AMEX

Card # _________________________________________________________________ Exp. Date

Total cost = ______________

________ / _______ (mm)

(yy)

MAIL ORDER ONLY NO PHONE ORDERS Signature ____________________________________________ Date _____________ Make checks payable to NARFE Name on card (print) ____________________________________________________

NARFE | APRIL 2011

NARFE Perks NARFE 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 below and encourages its members to shop and compare before making a decision on any financial matter.

MOVING SERVICES

INSURANCE

TRAVEL

NARFE INSURANCE SERVICES NARFE MEMBER HOMEBENEFITS 1-800-666-9203 http://narfe.myhomebenefits.com • Earn thousands in cash-back rewards when you buy or sell a home* • Shop competitive mortgage rates, receive discounts on closing costs, plus take advantage of your VA Loan Benefits • Receive preferred pricing on interesete moving services with the nation’s most trusted moving company – Allied Van Lines! *State restrictions apply. Call or visit website for details.

BEKINS VAN LINES 1-800-456-6832 (M-F, 8 a.m.-5 p.m. CT) narfe@bekins.com All NARFE members will receive discounted pricing for all interstate shipments. Discount will apply to packing and moving services and valuation protection. All intrastate shipments, locals and international moves will be competitive in cost based on your geographical location. Mention you are a NARFE member and transportation agreement #00930.

VACATION RENTALS .

Endless Vacation Rentals® As a member of NARFE, you will receive 10% off the “Best Available Rate” at vacation rental properties booked at www.evrentals.com/narfe or by calling 1877-670-7088, prompt 3, and providing promotion code 20672 at time of booking.

1-800-233-5764 Insurance plans designed and administered exclusively for NARFE members. Call for information on Whole and Term Life, Hospital Indemnity, Accidental Injury and Death Plan, Dental Plan and Cancer Care Plan. For information on Long Term Care call the Long Term Care Unit at 1800-358-3795.

GEICO: 1-800-368-2734 NARFE members with good driving records may be eligible for quality automobile insurance from GEICO. Ask about the NARFE discount now available to members in many states. Call today for your free, no-obligation rate quote. Be sure to mention that you’re a NARFE member! • Discount amount varies in some states • Discount not available in all states or in all GEICO companies • One group discount applicable per policy.

EMERGENCY SERVICES SINCE 1974 1-800-423-3226 Medical Air Services Association has been the industry leader in prepaid emergency assistance services for more than 30 years. NARFE members have experienced MASA’s “peace of mind” services since 2001. Now NARFE members are entitled to even more: air ambulance transportation, helicopter transportation, ground ambulance, vehicle return, mortal remains transport, and much more! Call MASA Today. It Could Save Your Life!

Escorted Group Cruise to

ALASKA August 27, 2011 Join your fellow NARFE members on this 7-night cruise conveniently sailing from Seattle. Rates as low as $699 including all taxes & fees – special amenities include $75 onboard credit, bottle of wine & hosted cocktail party.

1-800-607-4538 www.NARFEtravel.com

HEARING BENEFITS TRUHEARING The TruHearing program can save you hundreds of dollars: • Free hearing screening • 45-day, money-back guarantee • 3-year warranty • Free one-year supply of batteries • 1,400 hearing professionals nationwide • 12-months, no interest financing (available upon approved credit)

Call to schedule your appointment

877-360-2442 Operators available Mon-Fri 9 a.m.-9 p.m. (East Coast time)

APRIL 2011 | NARFE

HOTELS

CAR RENTALS

CREDIT UNION

ALAMO/NATIONAL CAR RENTAL

NARFE’S OFFICIAL CREDIT UNION

CHOICE HOTELS INTERNATIONAL With 6,000 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. Join the Choice Privileges® rewards program and earn points with every qualifying stay toward free nights, Airline Rewards, gift cards and more. 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. To book, visit choicehotels.com or call 800-258-2847.

1-800-354-2322 — www.alamo.com Welcome to Alamo Country. Where NARFE members get unlimited mileage and year-round discounts off Alamo’s already great rates. Book with your travel agent or Alamo®. Be sure to request I.D. Number 262544 and Rate Code BY (A-1 for weekend rentals) at the time of reservation. (Same ID number and code applies to National Car Rental.)

As a member of NARFE, you have the privilege of joining NARFE Premier Federal Credit Union, which has been serving members since 1935. We offer extensive services at competitive rates to members nationwide. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. For more information, call 800-3281500, e-mail jparish@narfepremierfcu. org or visit us at NARFEpremierfcu.org.

CREDIT CARD AVIS: 1-800-331-1441 WYNDHAM HOTEL GROUP As a member of NARFE, you will receive up to 20% off the “Best Available Rate” at participating locations when you travel. Call and give agent your special discount ID number, #20672, at time of booking to receive discount. Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now. Call our special memberbenefits hotline 1-877-670-7088 and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®.

NARFE | APRIL 2011

The employees/owners of Avis offer guaranteed low rates and quality services to members of NARFE. Mention ID# A991900.

HEALTH SCREENING

LIFE LINE SCREENING Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct the following screenings using state-of-the-art ultrasound technology in your neighborhood: 1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease. You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share these test results with your doctor. All four screenings cost just $135. To schedule an appointment, please call 1-800-324-9906 and give the operator code number: BKHN075 or visit www.lifelinescreening. com/NARFE. Coverage may vary and may not be available in all states.

Bank of America now offers the officially approved credit card program for NARFE, featuring the Platinum Plus® MasterCard® with WorldPoints. This is the only credit card that helps support NARFE every time you use it to make a purchase–at no additional cost to you. Call toll-free 1-866-438-6262 Use NARFE’s full name, not NARFE. Use priority code: UABEWD.

NARFE MERCHANDISE NARFE GENERAL STORE

Order Official NARFE Name Badges. Coming soon, customizable NARFE logo products and plaques. See MEMBER PERKS on the NARFE Web site, or go to: www.narfegeneralstore.com. Toll-Free Phone: 877-866-0102 Fax: 301-371-6824

For the Record The chart below tracks the CPI-W, the monthly inflation change, and the cumulative percentage gain for the next CSRS and Social Security COLA. CPI-W October 2010 November December January 2011 February March April May June July August September

214.6 214.8 215.3 216.4

MONTHLY % CHANGE % CHANGE FROM 215.5 +0.1 +0.1 +0.2 +0.5

Funds All Rise In February ByTracey Ray

hat a difference a couple of years makes! On March 9 two years ago, the Thrift Savings Plan (TSP) equity funds were at their lows, as the country and the world were engulfed in a financial crisis. Now, all of those funds have more than doubled. The C and I Funds are up 105 percent, and the S Fund is up a whopping 148 percent. Investors are focused on the economic recovery, with positive news on gross domestic product, consumer confidence and industrial production. Although woes in the Middle East caused the equity markets to fall approximately 2 percent in the last week of February, the declines were not enough to offset substantial gains that were achieved earlier in the month, and every TSP Fund posted a positive return.

Tracey Ray is chief investment officer of the Thrift Savings Plan. 50

-0.4 -0.4 -0.1 +0.4

Index Up Again in January

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent in January. To calculate the 2012 cost-of-living adjustment (COLA), the indices of July, August and September 2011 will be averaged for a thirdquarter determinant, which will be compared with the 2008 thirdquarter base of 215.495 (because of price deflation in the past two measurement years, the 2008 third-quarter average is still the point of comparison). The January index of 216.400 is up 0.42 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. January’s index is 0.5 percent higher than the December 2010 base index of 215.262. ■

Thrift Savings Plan Investments* Month G Fund March 0.27% 2010 April 0.28% May 0.28% June 0.24% July 0.23% August 0.22% September 0.17% October 0.18% November 0.17% December 0.20% 0.24% 2011 January February 0.22% Last 12 Months 2.74%

F Fund (0.11%) 1.07% 0.85% 1.56% 1.07% 1.28% 0.17% 0.36% (0.57%) (1.05%) 0.13% 0.26% 5.09%

C Fund 6.04% 1.58% (7.99%) (5.24%) 7.01% (4.51%) 8.92% 3.80% 0.01% 6.68% 2.37% 3.42% 22.55%

S Fund 7.39% 4.82% (7.51%) (6.90%) 7.00% (5.59%) 11.47% 4.48% 3.00% 7.38% 1.23% 4.52% 33.43%

Month 2010 March April May June July August September October November December 2011 January February Last 12 Months

L 2020 3.75% 0.76% (4.98%) (2.34%) 4.82% (2.29%) 5.54% 2.29% (0.49%) 4.08% 1.35% 2.15% 15.01%

L 2030 4.52% 0.94% (6.07%) (2.98%) 5.80% (2.88%) 6.77% 2.78% (0.56%) 4.96% 1.57% 2.60% 17.93%

L 2040 5.15% 1.05% (6.97%) (3.47%) 6.60% (3.33%) 7.76% 3.16% (0.64%) 5.67% 1.75% 2.95% 20.22%

L Income 1.43% 0.50% (1.50%) (0.61%) 1.81% (0.63%) 2.00% 0.92% (0.05%) 1.49% 0.63% 0.90% 7.06%

I Fund 6.28% (2.35%) (11.20%) (1.75%) 10.78% (3.14%) 9.81% 3.63% (4.84%) 8.12% 2.41% 3.33% 20.37% L 2050

3.28%

*This chart is provided as a service to NARFE members who enrolled in the Thrift Savings Plan while employed by the federal government. Retirees are not eligible for enrollment. These returns are net of the effect of accrued administrative expenses and investment expenses/costs. Percentages in ( ) are negative. Source: tsp.gov.

APRIL 2011 | NARFE

Finally, a cell phone that’s… a phone!

y ice b Pr ced du 48 Re $

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“Well, I finally did it. I finally decided to enter the digital age and get a cell phone. My kids have been bugging me, my book group made fun of me, and the last straw was when my car broke down, and I was stuck by the highway for an hour before someone stopped to help. But when I went to the cell phone store, I almost changed my mind. The phones are so small I can’t see the numbers, much less push the right one. They all have cameras, computers and a “global-positioning” something or other that’s supposed to spot me from space. Goodness, all I want to do is to be able to talk to my grand kids! The people at the store weren’t much help. They couldn’t understand why someone wouldn’t want a phone the size of a postage stamp. And the rate plans! They were complicated, confusing, and expensive… and the contract lasted for two years! I’d almost given up when a friend told me about her new Jitterbug phone. Now, I have the convenience and safety of being able to stay in touch… with a phone I can actually use.”

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Aﬀordable plans that I can understand – and no contract to sign! Unlike other cell phones, Jitterbug has plans that make sense. Why should I pay for minutes I’m never going to use? And if I do talk more than I plan, I won’t find myself with no minutes like my friend who has a prepaid phone. Best of all, there is no contract to sign – so I’m not locked in for years at a time or subject to termination fees. The U.S. – based customer service is second to none, and the phone gets service virtually anywhere in the country. Monthly Minutes Monthly Rate Operator Assistance 911 Access Long Distance Calls Voice Dial Nationwide Coverage Trial Period

100

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Call now and get a FREE Car Charger and 100 FREE Minutes – a $43.99 value. Try Jitterbug for 30 days and if you don't love it, just return it. Why wait, the Jitterbug comes ready to use right out of the box. If you aren’t as happy with it as I am, you can return it for a refund of the purchase price. Call now, the Jitterbug product experts are ready to answer your questions.

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IMPORTANT CONSUMER INFORMATION: 100 free minute offer is not available with online purchases. 100 free anytime minutes are for new GreatCall customers only and will be applied upon activation of service. Minutes must be used within one year of activation. All rate plans require the purchase of a Jitterbug phone and a one-time set up fee of $35.00. Coverage and service is not available everywhere. There are no additional fees to call Jitterbug’s 24-hour U.S. Based Customer Service. However, for calls to an Operator in which a service is completed, minutes will be deducted from your monthly balance equal to the length of the call and any call connected by the Operator, plus an additional 5 minutes. Rate plans do not include government taxes or assessment surcharges. Prices and fees are subject to change. Savings are based on marketing materials from nationally available cellular companies as of June, 2010 (not including family share plans). The full price of the Jitterbug Phone will be refunded if it is returned within 30 days of purchase, in like-new condition, and with less than 30 minutes of usage. A Jitterbug Phone purchased from a retail location is subject to the return policy of that retail location. The Jitterbug phone is created together with worldwide leader Samsung. Jitterbug is a registered trademark of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics America, Inc. and its related entities. Created together with worldwide leader Samsung. Copyright © 2010 by firstSTREET for Boomers and Beyond, Inc. All rights reserved.

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