MAY
’17
COVER STORY
RETIREMENT PLANNING MYTHS P.22
Volume 93 • Number 5
P.30
LEGISLATIVE TRAINING CONFERENCE COVERAGE
P.36
ANATOMY OF A SUPER ADVOCATE
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Call Beltone at 1-866-376-1445 to schedule your complimentary hearing screening today! *The insured may need to submit for reimbursement. State and/or local taxes may apply. Prices and products subject to *The insured may need to submit for reimbursement. State and/or local taxes may apply. Prices and products subject to change. Blue Cross and Blue Shield Service Benefit Plan will pay a hearing aid benefit up to $2,500 every 3 calendar years for change. Blue Cross and Blue Shield Service Benefi t Plan will pay a hearing aid benefi t up to $2,500 every 3 calendar years adults age 22 and over, and up to a $2,500 total per calendar year for members up to age 22. Do not rely on this communication for adults age 22 and over, and up to a $2,500 total per calendar year for members up to age 22. Do not rely on this piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in your communication piece alone for complete benefi t information. All benefits are subject to the definitions, limitations, and Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase exclusions in your Service Benefi t Plan brochure. The Blue365® Discount Program offers access to savings on items that you directly from independent vendors, which may be different from items covered under your Service Benefit Plan or any other may purchase directly from independent vendors, which may be different from items covered under your Service Benefi t Plan applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must Service Benefit Plan benefits first. To find out what is covered under your policy, contact the Service Benefit Plan. The products exhaust your Service Benefi t Plan benefi ts first. To find out what is covered under your policy, contact the Service Benefi t and services described herein are neither offered not guaranteed under any local Blue company’s contract with the Medicare Plan. The products and services described herein are neither offered not guaranteed under any local Blue company’s contract program. In addition, these items are not subject to the Medicare appeals process. Any disputes regarding these products with the Medicare program. In addition, these items are not subject to the Medicare appeals process. Any disputes regarding and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross and Blue Shield Association these products and services are not subject to the Service Benefi t Plan’s Disputed Claims process. Blue Cross and Blue (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, BCBSA, nor any local Blue company Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefi t Plan, BCBSA, nor any recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the local Blue company recommends, endorses, warrants or guarantees any specifi c Blue365 vendor or item. The Service Benefi right to change, modify, or terminate any item and vendors made available through Blue365, at any time. Blue Cross and Blue t Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time. Shield Association is an association of independent, locally operated Blue Cross and Blue Shield Companies. State and local Blue Cross Shield Available Association is an association of until independent, taxes and/orand feesBlue may apply. at participating locations 12/31/17. locally operated Blue Cross and Blue Shield
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MAY
’17
WASHINGTON WATCH
6
What to Expect From the FY2018 Budget Process
7
Bill Introduced to Repeal WEP/GPO
8
NARFE Supports Bill to Provide a Fair COLA
10
Tell NARFE About Your Advocacy Success
12
NARFE Bill Tracker
COLUMNS
4
From the President
40 Managing Money
22
42 The Informed Citizen
COVER STORY RETIREMENT PLANNING MYTHS. Take the quiz to test your understanding of 10 things you probably didn’t know about retirement planning.
DEPARTMENTS
14 Questions & Answers 44 For the Record:
TSP Returns, Retirement Claims Status, Countdown to COLA
46 NARFE News LEGISLATIVE TRAINING CONFERENCE. NARFE members geared up to fight cuts to pay and benefits as they took their message to Capitol Hill.
30
52 The Way We Worked SPECIAL SECTIONS
30 Legislative Training Conference
On the Web
36 Anatomy of a Super
VISIT US ONLINE AT:
Advocate
www.narfe.org LIKE US ON FACEBOOK:
NARFE National Headquarters FOLLOW US ON TWITTER:
@narfehq
ON THE COVER
Illustration by Bill Pragluski, Critical Stages, LLC W W W. N A R F E . O R G
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MAY 2017 | Volume 93 | Number 5
EDITOR Susan Boswell EDITORIAL ADMINISTRATOR Toni Vallario GRAPHIC DESIGN Charlene Gridley EDITORIAL BOARD Richard G. Thissen, Jon Dowie
EDITORIAL OFFICE: narfe magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Email: communications@narfe.org ADVERTISING SALES: Warren Berger Media People Inc. 122 East 42nd St., Suite 1622 New York, NY 10168 Phone: 212-779-7172, ext. 223 Email: wberger@mediapeople.com
NARFE FOR THE VISUALLY IMPAIRED ON THE TELEPHONE: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-5047300 or go to www.nfbnewsline.org. ON DIGITAL AUDIO: Issues of narfe magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider.
The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.
National Active and Retired Federal Employees Association NATIONAL OFFICERS RICHARD G. THISSEN, President; natpres@narfe.org JON DOWIE, Secretary/Treasurer; natsectreas@narfe.org
REGIONAL VICE PRESIDENTS
REGION I James P. Crawford (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) TEL: 603-630-5191 EMAIL: crawfordjim62@gmail.com REGION II Evelyn Kirby (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) TEL: 410-604-1141 EMAIL: ekirby@atlanticbb.net REGION III Clarence Robinson (Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 EMAIL: crobin8145@att.net
REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: pappysdad@cobridge.tv REGION VII Rodney L. Adelman (Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: narfe7vp@cox.net REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) TEL: 707-644-7565 EMAIL: HLZajac125@gmail.com
REGION IV Edward J. Konys (Illinois, Indiana, Michigan, Ohio and Wisconsin) TEL: 937-470-0566 EMAIL: region4vp@gmail.com
REGION IX Richard Wilson (Alaska, Idaho, Montana, Oregon and Washington) TEL: 253-210-5609, CELL: 425-736-6899 EMAIL: narfe1404@comcast.net
REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) TEL: 620-241-1131, CELL: 620-504-2202 EMAIL: ek617@att.net
REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) TEL: 703-830-6590, CELL: 703-201-6304 EMAIL: wshack1951@aol.com
HERE’S HOW TO CONTACT US…
TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER:
CALL (TOLL-FREE) 800-627-3394 OR GO TO www.narfe.org TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:
CALL (TOLL-FREE) 800-456-8410, EMAIL memberrecords@narfe.org OR GO TO www.narfe.org, log in and click on “Update My Record”
TO REACH A FEDERAL BENEFITS SPECIALIST:
EMAIL fedbenefits@narfe.org NARFE HEADQUARTERS
606 N. Washington St. Alexandria, VA 22314 703-838-7760
www.narfe.org
narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $40. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2017, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in narfe, but at the same time we will not undertake to guarantee the reliability of our advertisers.
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From the President
A NEW CONGRESS, MYRIAD ISSUES
T
here are myriad issues facing us this year as federal and postal employees, annuitants and seniors.
So far, we have avoided any direct hits on our benefits during the fiscal year 2017 budget discussions. As I write this, Congress is focused on how to replace the Affordable Care Act (ACA). So far, the Federal Employees Health Benefits Program (FEHBP) wouldn’t be directly impacted, but we will continue to monitor ACA discussions. As the House and Senate tackle FY 2018 budget deliberations, many issues that we defeated during the last session of Congress are now reappearing. These proposals include voucher payments for the FEHBP that are limited to the cost-ofliving increase, resulting in a higher share of
NARFE’s Mission Statement To support legislation and regulations beneficial to federal civilian employees and annuitants and potential annuitants under any federal civilian retirement system and to oppose those detrimental to their interests. To promote the general welfare of federal civilian employees and annuitants and potential annuitants, to advise and assist them with respect to their rights under retirement, health and other employee and retiree benefits laws and regulations, and to represent their interests before appropriate authorities. To cooperate with other organizations and associations in furtherance of these general objectives.
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premiums for enrollees, and even the elimination of FEHBP coverage for future retirees. There is discussion of abolishing the Federal Employees Retirement System (FERS) for new hires, which removes one of the three “legs” of the retirement system, and ending supplemental payments for FERS employees who retire before age 62. There is talk about revising the rate of return for the Thrift Savings Plan G Fund, and changing the computation for the annuity for current employees from the highest three years of earnings to the highest five years. Efforts also are underway to weaken due process appeal rights. As you know, a federal hiring freeze has been implemented with reductions in the federal workforce through attrition. The House passed the Holman Rule, which allows amendments from the floor without committee review during the appropriations process. This rule, reinstated in the House rules only for 2017, can be used to decrease the salary or fire a specific individual, or to reduce the size of an agency or program. On top of all of this, the Postal Reform Act (H.R. 756) would force current postal retirees to enroll in Medicare Part B in order to retain their FEHBP coverage, which removes their choice in health care decisions and sets a dangerous precedent for all federal retirees. Be assured we will continue to fight all of these issues and send Action Alerts for grassroots action as needed.
RICHARD G. THISSEN NARFE NATIONAL PRESIDENT natpres@narfe.org
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Washington Watch
THE FISCAL YEAR 2018 BUDGET PROCESS: WHAT TO EXPECT
N
ARFE members are all too familiar with the damage done to their compensation and benefits over the years through the congressional budget process, particularly
reconciliation. However, it’s worth a recap of the 43-year-old budget process, established by the Congressional Budget Act of 1974, to know where we are and where we are going.
On March 16, President Trump released his first “skinny budget” for fiscal year 2018, which includes a $54 billion increase in Department of Defense spending, offset by a parallel cut in nondefense discretionary spending. For federal employees, the most significant impact of these cuts will be in “salary and expense” accounts, namely, the funding source for pay and benefits for active federal employees. The full budget, including policy priorities and mandatory spending, is expected to be released by the administration in mid-May. By tradition, the House and Senate Budget Committees assemble a FY 2018 Budget Resolution, taking the president’s proposal under advisement and 6
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deciding on spending and revenue priorities for the fiscal year beginning on Oct. 1, 2017. By April 15, the House and Senate are to complete the action and agree, in conference, on a common budget blueprint. At that point, the House and Senate Appropriations Committees are allocated an aggregate pool of money which they
ACTION ALERT!
divide among their respective 12 subcommittees covering the range of services and activities carried out by the federal government. Whether Congress agrees to the president’s Pentagon increase at the expense of programs ranging from child nutrition to medical research, and environmental protection to veterans’ health care, remains to be seen. The budget resolution conference report also is the mechanism that triggers the budget reconciliation process. At this point, NARFE members would be wise to pay attention, as reconciliation is sent to the president, while the budget resolution is not.
M AY
Do you think that your meager 0.3 percent cost-of-living adjustment (COLA) this year is inadequate? Contact your representative using NARFE’s Legislative Action Center to urge him or her to support changing the calculation of the annual COLA to the more accurate Consumer Price Index for the Elderly (CPI-E). Urge your representative to cosponsor the CPI-E Act of 2017 (H.R. 1251) today! Visit the Action Center at www.narfe.org/ legislation/votervoice.cfm.
If the budget conferees decide on specific reductions in entitlement and direct spending programs, they include instructions to congressional committees to recommend changes in laws within their jurisdiction sufficient to reduce the deficit by specified amounts. These instructions trigger legislation that enjoys special treatment in the legislative process – it requires only a simple majority for passage in the Senate. This is the reason that the new Congress is using the reconciliation process as the vehicle for reform of the Affordable Care Act. As a note of caution, specific proposals for changes in the compensation and benefits of federal employees and retirees could be high on the priority list. However, the prospect of sweeping changes is doubtful with the late confirmation of Mick Mulvaney, the new director of the Office of Management and Budget, coupled with Congress’ desire to use the reconciliation process as the vehicle for tax reform in FY 2018. A further caveat is that the federal government is currently operating under a Continuing Resolution that expires on April 28, 2017. Although the new president could take an aggressive budget stance to either make policy or reduce the size of government, it does not appear that Congress will tinker significantly with the status quo in funding agencies through the end of FY 2017. Stay tuned! —ALAN LOPATIN, LEGISLATIVE COUNSEL
BILL TO REPEAL WEP/GPO REINTRODUCED IN HOUSE
A
bill to repeal the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) has been reintroduced in the House by Rep. Rodney Davis, R-IL. The Social Security Fairness Act of 2017, H.R. 1205, was submitted to Congress on February 21 and now resides in the House Committee on Ways and Means for further deliberation. As of press time, the bill has bipartisan support with 97 cosponsors. Similar legislation was introduced in the previous Congress but failed to see action due to the high costs associated with outright repeal of both provisions. The GPO prevents more than half a million federal retirees who receive a government annuity based on their work in non-Social Security-covered employment from getting Social Security benefits based on their spouse’s work. The WEP greatly reduces the Social Security benefits of approximately 1.5 million federal retirees who worked in Social Security-covered employment and who receive an annuity based on their government job which is not covered by Social Security. NARFE has long opposed both the WEP and GPO provisions and is working with the Coalition to Assure Retirement Equity (CARE), which NARFE helped
create in 1991, to end these unfair penalties. It is vital that NARFE members urge their members of Congress to cosponsor this piece of legislation. Garnering support for this bill creates a starting point for eventual consideration and future reforms of these penalties. NARFE members can easily send their legislators a letter urging them to cosponsor H.R. 1205 via the NARFE Legislative Action Center on www.narfe.org. —ROSS APTER, LEGISLATIVE ASSISTANT
Legislative Resources • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE Legislative Department staff, distributed via email and available by phone (toll-free) at 877-217-8234 and online at www.narfe.org. • Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.
W W W. N A R F E . O R G
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Washington Watch
NARFE SUPPORTS BILL TO PROVIDE A FAIR COST-OF-LIVING ADJUSTMENT
N
ARFE President Richard G. Thissen joined Rep. John Garamendi, D-CA, and other supporting organizations at a March 1 press conference to support legislation providing fair cost-of-living adjustments (COLAs) for federal and military retirees and seniors collecting Social Security benefits, among others. Rep. Garamendi introduced H.R. 1251, the CPI-E Act of 2017, which would require federal retirement programs to use the Consumer Price Index for the Elderly (CPI-E) to calculate COLAs instead of the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). At the press conference, Thissen put it in layman’s terms: “While the CPI-E Act of 2017 amends a complex calculation, it provides a rather simple improvement, rooted in common sense. What this bill says to seniors is that your cost-of-living adjustment will more accurately reflect your cost of living. That’s it! It’s that simple!” Use of the current index is costing seniors, including federal civilian and military retirees, precious dollars every year. The 2017 COLA was 0.3 percent, and the year before, there was no COLA at all. Yet, over these two years, the actual cost of living incurred by seniors increased by 2.7 percent — 2.1 percent in 2016 and 0.6 percent in 2015. For the average federal annuitant, that would have meant an increase of approximately $950 per year. That is from just the last two years. Over time,
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“What this bill says to seniors is that your cost-of-living adjustment will more accurately reflect your cost of living. That’s it! It’s that simple!” NARFE President Richard Thissen and Rep. John Garamendi
the difference adds up to tens of thousands of dollars. The reason the current index (the CPI-W) is used is because it was the only index available in 1972 when Congress first made COLAs automatic. Since then, the Bureau of Labor Statistics (BLS) has been calculating an index measuring prices experienced by those age 62 and older, called the CPI-E. Between 1982 and 2014, BLS showed prices increased for those individuals by 0.2 percentage points more per year, on average. This is the result of different spending habits by seniors. Notably, seniors rely more on medical care and medical price increases have far outpaced the price increases for other consumer goods. NARFE joined Rep. Garamendi, Social Security Works, the National Committee to Protect Social Security and Medicare, and others at the March press conference to promote the CPI-E Act. However, without more support, the bill is unlikely to receive
—Richard Thissen serious congressional consideration. Despite the overwhelming common sense behind the fix to seniors’ COLAs, this Congress is very unlikely to authorize an increase in spending on Social Security, federal or military retirement benefits. Such a spending increase, without corresponding cuts or revenue increases, would increase government deficits, which many in Congress want to reduce. While this Congress may still increase deficits this term, it is likely to do so only in pursuit of top legislative priorities, such as cutting certain taxes through the repeal and replacement of the Affordable Care Act, potential revenue reductions from tax reform or infrastructure spending increases. Popular support influences congressional priorities, and with enough support from their voters for fair COLAs, even the most ardent deficit hawks might find a way to offset the costs elsewhere in the budget. As they say, where there is a will, there’s a way. —JOHN HATTON, DEPUTY LEGISLATIVE DIRECTOR
NARFE’s
CONGRESSIONAL DIRECTORY for the
115th Congress (2017-2018)
Only $20
Features: • 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, social media contacts, district offices and key staffers. • Complete listings of committees, subcommittees and leadership. • Contact information for the White House, Cabinet, Supreme Court and federal agencies. Be a stronger activist with NARFE’s Congressional Directory at your fingertips
Order your copy of the new CONGRESSIONAL DIRECTORY today! Name___________________________________________________________________ Address _________________________________________________________________ City _________________________________________ State ______ ZIP____________ Member ID# (as it appears on narfe magazine label) _____________________________
o Check (payable to NARFE) or cash enclosed o Charge my credit card o MasterCard o VISA
o Discover o AMEX
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Quantity ________________ $20 each (includes shipping and handling) VA sales tax _____________ VA residents add 6% tax ($1.20) per book Total cost _______________ Mail to: NARFE Congressional Directory 606 N. Washington Street Alexandria, VA 22314-1914
Please allow 2-3 weeks for delivery. Call NARFE’s Legislative Department at 703-838-7760 to order by phone.
Washington Watch
YOU’VE PUT ADVOCACY INTO ACTION — LET US KNOW OF YOUR SUCCESS!
H
ave you attended a meeting or event recently with your legislator or their staff? Tell NARFE’s Legislative Department the details by filling out the “Congressional Meeting and Event Feedback Form” in the NARFE Legislative Action Center. This simple form makes it easy for NARFE members to provide feedback, and also helps us keep a record of your contacts with your legislators. Submitting this form helps NARFE’s Legislative staff keep up-to-date on your legislator’s stance on NARFE issues, which in turn helps NARFE lobby effectively on Capitol Hill. We thank you for your advocacy efforts, and appreciate the time you have taken to represent NARFE – so tell us about what you’ve done! CONGRESSIONAL MEETINGS When you meet with your legislator or staff, you are making a commitment to speak on behalf of the federal community. Whether you attended a meeting with your legislators and their staff in their district office or in Washington, DC, knowing the details of your meeting, including the list of topics you discussed and any pertinent information about federal employees or retirees, allows NARFE lobbyists to reiterate your message on Capitol Hill. It is crucial that NARFE’s Legislative Department is made aware of the content of these meetings so we are united in our efforts. TOWN HALLS After you attend a town hall
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All of these encounters help build relationships as well as recognition of NARFE and our top legislative priorities. event wearing your NARFE gear, or participate in a telephone town hall, and ask a question about your legislator’s position on an issue affecting the federal community, we want to hear what your legislator had to say! Even if your question was not answered during the event, your attendance and participation as a representative of NARFE helps build a relationship with that member of Congress and/or their staff, and demonstrates NARFE’s dedication to protecting the earned pay and benefits of federal employees and retirees. COMMUNITY EVENTS AND ENCOUNTERS Sometimes it’s easy to forget, but members of Congress are part of their community. You may run into your legislator when you least expect it! Maybe you’ll see your representative at your town’s annual Memorial Day parade and have a chance to talk about issues affecting federal employees and retirees. If so, tell us about it! Some NARFE members drop off a copy of narfe magazine at their legislator’s district office each month. All of
these encounters help build relationships as well as recognition of NARFE and our top legislative priorities. While the details are fresh in your mind, be sure to visit the new NARFE Legislative Action Center and submit the Congressional Meeting and Event Feedback Form. The Legislative Department appreciates your time and advocacy efforts! If you have any questions, please email the Legislative Department at leg@narfe.org. —MOLLY CHECKSFIELD, GRASSROOTS PROGRAM MANAGER
MYTH vs. REALITY MYTH: The current rate of return on the Thrift Savings Plan (TSP) G Fund does not correspond with the investment risk incurred and should be changed.
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Washington Watch
narfe bill tracker THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO THE CONGRESSIONAL LEGISLATION THAT NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE
BILL NUMBER / NAME / SPONSOR H.R. 756: Postal Service Reform Act of 2017 / Rep. Jason Chaffetz, R-UT
WHAT BILL WOULD DO Requires postal retirees to enroll in Medicare in order to continue receiving their current federal health insurance coverage. Enrollment would be automatic.
Cosponsors: 7 (D), 6 (R)
LATEST ACTION(S) Referred to the House Committee on Oversight and Government Reform and two other committees narfe, April 2017
H.Res. 15: Expresses the sense of the House that the U.S. Postal Service should take all appropriate measures to ensure the continuation of six-day delivery / Rep. Sam Graves, R-MO
Expresses the sense of the House that the U.S. Postal Service should maintain six-day mail delivery. As a resolution, it will not be sent to the president and, therefore, cannot become law.
Referred to the House Committee on Oversight and Government Reform
Expresses the sense of the House that the U.S. Postal Service should restore service standards as of July 1, 2012. As a resolution, it will not be sent to the president and, therefore, cannot become law.
Referred to the House Committee on Oversight and Government Reform
Expresses the sense of the House that the U.S. Postal Service should continue doorto-door delivery for businesses and residential customers. As a resolution, it will not be sent to the president and, therefore, cannot become law.
Referred to the House Committee on Oversight and Government Reform
Provides for a 2.0 percent pay raise for federal employees and 1.2 percent increase in locality pay in 2018.
Referred to the House Committee on Oversight and Government Reform
Cosponsors: 113 (D), 38 (R) H.Res. 31: Expresses the POSTAL REFORM sense of the House that the Postal Service should take all measures to restore service standards in effect on July 1, 2012 / Rep. Dave McKinley, R-WV Cosponsors: 117 (D), 29 (R) H.Res. 28: Expresses the sense of the House that the U.S. Postal Service should take all measures to ensure the continuation of doorto-door delivery for all businesses and residential customers / Rep. Susan Davis, D-CA Cosponsors: 159 (D), 43 (R) H.R. 757: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerald E. Connolly, D-VA FEDERAL COMPENSATION
Cosponsors: 57 (D), 1 (R) S. 255: The Federal Adjustment of Income Rates (FAIR) Act / Sen. Brian Schatz, D-HI
Referred to the Senate Homeland Security and Governmental Affairs Committee
Cosponsors: 7 (D)
TAXES
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narfe, April 2017
H.R. 396: Tax Accountability Act of 2017 / Rep. Jason Chaffetz, R-UT Cosponsors: 0
Mandates that no individual with an unpaid tax liability can be eligible for federal employment. Requires agencies to review employee’s tax liability.
NARFE’s Position:
Support
Referred to the House Committee on Oversight and Government Reform narfe, April 2017 Oppose
No position
EDITOR’S NOTE: These bills are all listed online at www.narfe.org/ legislation/votervoice.cfm.
ISSUE
CAMPAIGN FINANCE
GPO/WEP
COLA
BILL NUMBER / NAME / SPONSOR H.R. 20: The Government By the People Act of 2017 / Rep. John Sarbanes, D-MD Cosponsors: 154 (D), 1 (R) H.R. 1205: Social Security Fairness Act of 2017 / Rep. Rodney Davis (R-IL) Cosponsors: 74 (D), 23 (R)
WHAT BILL WOULD DO
LATEST ACTION(S)
Reforms campaign finance laws to put small donors on par with wealthier donors. Provides a tax credit for contributions and government matching contributions.
Referred to three House committees
Repeals both the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).
Referred to the House Committee on Ways and Means
H.R. 1251: CPI-E Act of 2017 Requires Social Security and / Rep. John Garamendi (D- many federal retirement programs to use the Consumer CA) Price Index for the Elderly (CPIE) to calculate cost-of-living adCosponsors: 31 (D), 1 (R) justments in retirement benefits.
See story, p. 7 Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Government Reform, and Armed Services See story, p. 8
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Questions & Answers
The following Questions & Answers were compiled by NARFE’s Federal Benefits Service Department staff. NARFE does not provide advice or assistance on legal, financial planning or tax matters.
EMPLOYEES TSP CONTRIBUTIONS AFTER RETIREMENT
Q the TSP?
When I retire in June 2017, I don’t plan on doing anything with my Thrift Savings Plan (TSP). If I am employed after retirement, could I make contributions to
A
One must be a federal employee to put money into the TSP. If you are not re-employed in federal service, you will not be able to contribute to your TSP account after retirement.
PARTIAL SURVIVOR ANNUITY ELECTIONS
Q
I am in contact with someone who is retiring under the Civil Service Retirement System (CSRS) and who would like more information about taking the partial survivor annuity. He is not sure how much to leave for his spouse and how the benefit is calculated.
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A
On form 2801, “Application for Immediate Retirement (CSRS),” there are three boxes in Section F, “Annuity Election,” to choose from: Box 1: This election provides the maximum survivor annuity payable. The survivor will receive 55 percent of the full unreduced gross annuity the retiree is receiving at the time of his or her death. Box 2: This election provides for less than the maximum survivor annuity. If the retiree puts a dollar amount on which to base the survivor benefit, upon the retiree’s death, the survivor will receive 55 percent of the amount stated. Box 2 Example: If the retiree specifies an amount of
$5,000, then upon his/her death, the survivor will receive 55 percent of $5,000 or $2,750 per year in gross survivor annuity. Box 3: This election does not provide a survivor annuity to the current spouse. If the retiree elects either Box 2 or Box 3, the current spouse must consent in writing.
RETIREES FLTCIP COVERAGE FOR ADOPTED GRANDCHILD
Q
I have made contributions to my Federal Long Term Care Insurance Program (FLTCIP) plan and have an adopted grandchild. Will my adopted grandchild be eligible to apply for coverage?
A
Yes, adult children (at least 18 years old, including adopted and stepchil-
dren) of living eligible employees and annuitants may apply. Many members of the federal family are eligible to apply for coverage under FLTCIP, including federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, as well as qualified relatives. Federal family members can apply for coverage anytime; they do not have to wait for the next Open Season. Premiums are based on the age and the premium rates in effect at the time an application is received. The younger you are when you apply, the lower your premium will be.
2017 MEDICARE PART B PREMIUMS
Q
I am single and have been receiving Social Security disability benefits for 24 months as a Federal Employees Retirement System (FERS) disability annuitant. I received my Medicare card for Medicare Part B and the premium was $134 and not $109. Why aren’t the premiums the lower price?
A
New Medicare beneficiaries for 2017 who file an individual tax return with income less than or equal to $85,000 will pay a monthly premium of $134. As a new enrollee, the hold harmless clause, which prevents your Social Security benefits from decreasing due to Part B premiums, does not apply. Beneficiaries who were enrolled in Medicare prior to 2017 and who
were paying the basic premium of $104.90 from their Social Security benefits will pay on average $109 per month for 2017.
MEDICARE NUMBER ENDS WITH A “T”
Q
I have a Medicare card with the letter “T” at the end of my Medicare number. Will this card permit me to use the Medicare card for my doctor visit?
A
The letter “T” indicates that you are eligible for Medicare Part A (hospital) benefits but are not eligible for Social Security retirement benefits. You are not enrolled in Medicare Part B (physician, medical).
SOCIAL SECURITY RETIREMENT AGE
Q
I am retired under the Federal Employees Retirement System (FERS) and started receiving my annuity at age 62. I continued working under Social Security after my retirement. What is my full retirement age under Social Security?
A
Traditionally, the full benefit age was 65, and early retirement benefits were first available at age 62, with a permanent reduction of 80 percent of the full benefit amount. Currently, the full benefit age is 66 for individuals born between 1943-1954, and the full benefit age gradually rises to 67 for those born in 1960 or later.
SUSPENDING FEHBP PLAN COVERAGE
Q
I am a Civil Service Retirement System (CSRS) annuitant and elected to obtain a Medicare Advantage plan and have family coverage on my FEHBP plan. Do the rules permit me to “suspend” my FEHBP plan coverage?
A
Yes, if you are a CSRS annuitant and elected a Medicare Advantage plan, and have family coverage on your FEHBP plan, the rules permit you to “suspend” your FEHBP coverage. To do so, contact the Office of Personnel Management (OPM) and request form RI 79-9, or download the form from the OPM website under “Retirement” and then “Publications and Forms.”
WAGES AND SOCIAL SECURITY BENEFITS
Q
I retired from the Department of Veterans Affairs in January 2015, and turned 65 in August of that year. I didn't start collecting Social Security benefits until Jan. 1, 2017. Someone told me that this year, there is a new law that states that now that I am 66, I can earn as much money as I want and it will not affect my Social Security benefit. Is this correct? How much money can I earn while receiving Social Security? Would I pay Social Security taxes?
A
There is no income limit on earnings while receiving Social Security after you reach your full retirement W W W. N A R F E . O R G
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Questions & Answers
age for Social Security. However, if you receive Social Security benefits before reaching your full retirement age, your benefit may be reduced $1 for every $2 you earn over the earnings limit. For 2017, the earnings limit is $16,920. If you are working, your employer is required to withhold Social Security taxes even if you are receiving benefits.
UNEMPLOYMENT COMPENSATION DENIAL
Q
I receive a Civil Service Retirement System (CSRS) annuity. I was laid off and applied for unemployment but was denied due to the 50 percent offset. Other CSRS employees who have worked for the
same company and receive similar annuities are receiving unemployment benefits from Rhode Island. Does the 50 percent offset apply to CSRS annuities?
A
State unemployment compensation law is not an area in which we have much specialized knowledge. In our research, we found information that you may already know but we will provide it here. For Rhode Island: “If an unemployment compensation recipient receives a pension benefit to which he contributed (including Social Security), his compensation is reduced by 50 percent of the amount of the pension. If he did not contribute to the pension, the entire amount is offset
(RI General Laws, Section 28-4419). The offset only applies if the recipient's base period employer contributed to the pension. Thus, if the employee receives a Social Security pension, there would be an offset in most cases since his base period employer would have paid Social Security taxes for the employee. On the other hand, if the employee receives a pension from an employer for whom he last worked 10 years ago, there would not be an offset.”
TRANSFER OF ANNUITY TO A SURVIVOR
Q
A friend of mine who died was receiving monthly benefits, and I assume his wife will need to fill out some
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paperwork to receive these benefits. Can you give me some guidance on what she needs to do?
A
If the deceased was a retired federal employee receiving a monthly annuity from the Office of Personnel Management (OPM), then the spouse needs to contact that agency to report the retiree’s death. There are several ways to contact OPM to report the death. Call OPM at 1-888-767-6738, email retire@opm.gov or visit www.servicesonline.opm.gov/ RSR/AnnuitantDeath/ ReportAnnuitantDeath. OPM will need the deceased retiree’s retirement claim number, or the Civil Service Annuity (CSA) number, name and date of death as well as contact information. About three weeks after OPM receives the notification of death, they will send a package to the surviving spouse containing death claim forms for monthly survivor benefits and for any Federal Employees’ Group Life Insurance (FEGLI) proceeds, if applicable.
ANNUITY DEDUCTIONS FOR HEALTH INSURANCE
Q
I am working on my taxes and do not understand the total for insurance premiums on CSA 1099-R, “Statement of Annuity Paid,” in Box 5. The number shown does not equal the 12 monthly deductions from my annuity, from January 2016 to December 2016, covering my health insurance, dental insurance and Medicare. The total shown in the box is significantly less than the deductions that were taken. Could you help me understand this? I have not been 18
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able to find an explanation on the Office of Personnel Management website.
A
I’m not sure how much help we can be on this issue. Our longtime understanding is that an annuitant’s health insurance premiums and Medicare Part B premiums (if they are withheld from the monthly annuity and not by Social Security) are included in the amount shown in Box 5 of the Civil Service Annuity (CSA) 1099-R. Federal dental and vision insurance premiums have never been included in Box 5 but can be obtained separately from BENEFEDS by calling 1-877-888-3337.
SURVIVOR BENEFITS FOR DISABLED ADULT CHILD
Q
The March 2017 issue of narfe magazine (p. 15), states that an adult child with a permanent disability would be eligible for a monthly survivor benefit and continued coverage under the Federal Employees Health Benefits Program (FEHBP). Is there an age requirement for the onset of the disability to qualify for this benefit? My son was disabled at age 21 and is still on my FEHBP policy at age 32. I was under the impression that he would not be eligible for survivor benefits.
A
There are two different laws involved for the FEHBP and the Civil Service Retirement System (CSRS). Until 2010, the law governing the FEHBP allowed adult children with disabilities to be covered for health insurance as a dependent if the disabling condition
occurred prior to age 22. After passage of the Affordable Care Act, the FEHBP law changed to state that the disabling condition had to have occurred prior to age 26. However, the changes to the health benefits coverage did not change the CSRS law concerning eligibility for a disabled adult child to receive a monthly survivor benefit upon the death of the retiree. To be eligible for the monthly survivor benefit, the onset of the disabling condition must have occurred prior to age 18 and the child must be unmarried and incapable of self-support.
MEDICARE PREMIUM PAYMENTS FROM ANNUITY
Q
I am a Civil Service Retirement System (CSRS) retiree newly enrolled in Medicare Part B. How do I arrange to have my Medicare Part B premium paid automatically by the Office of Personnel Management (OPM) out of my monthly annuity?
A
You can visit your local Social Security Administration (SSA) office to request to have your Medicare Part B premiums withheld from your monthly CSRS annuity, provided you are not eligible for any of the following: Social Security benefits, Railroad Retirement benefits or coverage under a state buy-in agreement. In addition, an individual who meets the above condition also may request to have their spouse’s Medicare Part B premiums withheld from the same annuity payment as long as the spouse also meets those requirements. After you make
your request, SSA will send the information to Medicare, which will then send to OPM the amount of Medicare Part B premiums to be withheld each month. The process may take several pay cycles before the annuity payment reflects the deduction. In addition, NARFE members have told us that personnel at some SSA offices are unaware of this process. In this case, either request the assistance of a supervisor, or refer the customer service representative to the SSA Program Operations Manual System, section HI 00805.245, titled “Development for SMI Enrollment of Civil Service Annuiwww.FreedomPlaza.com (888) 467-5202 tants and Their Spouses.”
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OBTAINING DEFERRED RETIREMENT BENEFITS
Q
I retired in 2000 after 27 years of service as a federal employee. I am now 62 years old and would like to know how to obtain my deferred retirement benefits. In the Office of Personnel Management form 1496A, “Application for Deferred Retirement,” it states, “Records on file with the Office of Personnel Management (OPM) indicate that you may be eligible for a deferred annuity beginning on the ‘commencing date’ shown above. To apply for your annuity, complete the enclosed Application for Deferred Retirement and return it to OPM. See the enclosed information.”
Based on the above, it appears to me that they will send some information to me along with the application. Do I wait for OPM to contact me with this information, or do I need to contact them?
A
We don’t think you should count on OPM initiating your retirement. Write to them at P.O. Box 45, Boyers, PA 16017, Attention: Deferred Retirement. In your request, provide OPM with the following so they can identify your records: any names you have used while working, date of birth, Social Security number, your current name, address and phone number, email address, your last agency name and location and when
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Questions & Answers
you left federal service. OPM will pull your retirement file and respond by mail.
PREMIUM EXCLUSIONS FOR TAX YEAR 2016
Q
I’m a retired federal law enforcement officer and have been using an old copy of the Internal Revenue Service Publication 721, “Tax Guide to U.S. Civil Service Retirement Benefits” to exclude a portion of my Federal Employees Health Benefits Program (FEHBP) premium when I file my federal income taxes. It just occurred to me the amount I’ve been using since 2014 as an exclusion, $3,000, may have changed. Do
NARFE at Your Service
you know if it has changed?
A
The maximum amount of the exclusion for retired Public Safety Officers has not changed since 2014. We checked the latest edition of Publication 721 for the current tax year 2016, which states, “You can exclude from income the smaller of the amount of the insurance premiums or $3,000.”
NARFE service officers are available to answer questions and to assist in helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. For the nearest service officer, call NARFE (toll-free) at:
To obtain an answer to a federal benefits question, NARFE members should call 703-838-7760 and ask for the Federal Benefits Service Department; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.
NARFE Service Centers also are available in some areas. Use the Service Center listings on the NARFE website,
800-456-8410.
www. narfe.org.
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Cover Story
10 Retirement
THINGS YOU PROBAB DIDN’T KNOW ABOUT
Planning
RETIREMENT RULES ARE COMPLICATED AND, AS A RESULT, IT IS HARD TO KNOW IF THE INFORMATION WE RELY ON IS ACCURATE. If there is a proposal from Congress to change your federal retirement benefits, we may fear that it passed unexpectedly and we tend to believe the rumor mill. We’ve heard enough stories about retirees who have received inaccurate information from their personnel office or other resource, and we have learned to be skeptical. A 2015 Chapman University Survey of American Fears showed that among the top fears of Americans today were government corruption (58%), running out of money (37.4%) and Ponzi schemes as well as other financial crimes (19%). Fortunately, to alleviate these fears, there are federal laws and regulations that are intended to provide guidance so that all federal employees and retirees receive equal treatment based on a uniform set of rules.
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LY By Tammy Flanagan
Illustration by Bill Pragluski, Critical Stages, LLC
10 Retirement Planning THINGS YOU PROBABLY DIDN’T KNOW ABOUT
However, the problem is that sometimes you may receive information that was inaccurately interpreted, or advice based on an old rule that has since been updated or changed. Keeping up with the changes and interpreting the guidance accurately can often present challenges when planning your retirement from federal service. When it comes to retirement planning, urban myths and common misinterpretations abound.
MYTHS AND MISCONCEPTIONS
How up-to-date is your knowledge of the federal retirement planning process? Take this quiz and test your knowledge to find out. The following 10 multiple choice questions describe common misconceptions. Of course, there is only one correct answer, but many of the possible answers have been circulated as urban myths or are common misinterpretations. Check your answers following the quiz to see how you did!
TAKE THE
RETIREMENT PLANNING
QUIZ
1
How many partial lump sum cash withdrawals is it possible to take from your Thrift Savings Plan (TSP)? a. One b. Two c. As many as you need d. Four Which of the following statements is true regarding the Federal Employees Health Benefits Program (FEHBP) and Medicare? a. Once you retire, you are required to enroll in Medicare Parts A and B b. Medicare by itself is adequate coverage and you may choose to cancel your federal health benefits when you enroll in Medicare A and B c. When Medicare is your primary payer, many of the FEHBP plans will waive their own deductible, copayments and coinsurance
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d. Once you have Medicare, you will have trouble finding doctors and specialists who will accept this coverage and you may be turned away e. Medicare helps to pay for most nursing home room and board expenses once your income falls below the poverty threshold
3
Which of the following statements is not an exception to the 10 percent early withdrawal penalty when making a TSP withdrawal? a. Separation (resignation or retirement) from federal service in the year you turn age 55 or later, or the year you reach age 50 if you are a public safety employee b. A series of monthly payments taken over your life expectancy as your payout option c. Separation prior to age 55 as long as you wait until age 55 to begin payments d. Payments made as a result of total and permanent disability At what age do you stop paying the Social Security (FICA) tax? a. Age 70 b. There is no age limit; as long as you are working, you continue to pay the tax c. When you begin receiving your Social Security retirement benefit d. Age 65, when you qualify for Medicare
4
5
All of the following facts about the Civil Service Retirement System (CSRS) make it more generous than the Federal Employees Retirement System (FERS), except one. Which one? a. The formula for computing retirement benefits for CSRS is more generous than the formula used for FERS b. CSRS retirees receive immediate and full cost-of-living adjustments c. Spousal survivor benefits are more flexible, generous and less expensive under CSRS d. CSRS retirees receive greater replacement of their preretirement income than FERS retirees having the same amount of service and identical salaries
All of the following facts about FERS make it more flexible than CSRS, except one. Which one? a. Since FERS is a three-tiered system, you don’t have to apply for all three benefits at the same time b. You may retire with a reduced retirement benefit at the minimum retirement age with a minimum of 10 years of creditable service c. Since your retirement is not affected by outside earnings, you may receive your retirement benefit and go back to work in private industry at any age d. The benefits left behind for a survivor of an employee who dies in service are more generous
6
7
The service computation date that is published on your Standard Form 50, “Notification of Personnel Action“ is used only for what purpose: a. Leave accrual b. Reduction in Force eligibility c. Disability eligibility d. Retirement computation and eligibility e. Vesting for the TSP Under FERS, retirees receive a temporary benefit if they are under age 62 and are entitled to an immediate, unreduced retirement benefit. This temporary benefit is called: a. FERS Annuity Supplement b. FERS bridge payment c. Social Security Retirement Supplement d. FERS basic annuity
8
Which one of the following statements is a valid reason to stay in the TSP rather than move your retirement savings to another retirement account, such as an individual retirement account (IRA): a. More flexibility, broader diversification and personal investment advice b. Low administrative fees, simplicity and protection from creditors c. Lower premiums, no copayments and better coordination between the plans
9
of the following retirement ben10 Which efits are not subject to federal income tax
once you are retired: a. Withdrawals from traditional IRAs and traditional TSP funds that were invested on a pretax basis b. Social Security retirement benefits c. Withdrawals from Health Savings Accounts (HSA) and Health Reimbursement Accounts (HRA) when used to pay eligible medical expenses and certain health care premiums d. Withdrawals from Roth IRAs and Roth TSP investments that meet certain requirements e. C, D and sometimes B
ANSWERS
QUESTION 1: CORRECT ANSWER: D. You may take four partial lump sum cash withdrawals from your TSP. Although there is a one-time opportunity to request a partial withdrawal when separated from federal service (form TSP-77) or an age-based in-service withdrawal (form TSP-75), there are actually three additional ways to take out a lump sum of cash from your TSP after you separate from federal service: 1) an outstanding TSP loan balance that can be left unpaid after you separate from federal service, which will be declared a taxable distribution if you fail to repay the loan within 90 days of being notified of the balance; 2) a cash payment that can be elected as one of the options available by using form TSP-70, “Request for Full Withdrawal;” and 3) a final lump sum payment of the account balance can be made by canceling a series of monthly TSP payments. QUESTION 2: CORRECT ANSWER: C. With regard to FEHBP and Medicare, the decision to enroll in Medicare is yours. Most FEHBP plans provide incentives so that once Medicare is the primary payer, you will pay fewer out-of-pocket expenses. Many plans waive their own deductibles, copays and coinsurance so that you have close to 100 percent coverage for your medical care covered by Medicare and your FEHBP plan. Some plans will reduce the prescription drug copays as well. Although there are
W W W. N A R F E . O R G
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10 Retirement Planning THINGS YOU PROBABLY DIDN’T KNOW ABOUT
some medical providers that do not take Medicare patients, the majority of primary care physicians (93 percent) say they take Medicare, although the acceptance rate of new Medicare patients is 72 percent, according to a Kaiser Family Foundation (KFF) 2015 National Survey of Primary Care Providers. Less than 1 percent of physicians in clinical practice have chosen to opt out of the Medicare program, of which 42 percent are psychiatrists, according to a KFF 2016 issue brief. Only 67 percent of physicians accept Medicaid patients; however, Medicaid helps pay for custodial care in a nursing home, according to the KFF 2015 survey. Medicaid is a joint federal and state program that helps people with low income and assets. QUESTION 3: CORRECT ANSWER: C. To avoid the 10 percent early withdrawal penalty when making a TSP withdrawal, employees who separate prior to age 55 must wait until age 59 ½ to begin taking TSP payments. Answers A, B and D are all exceptions to the 10 percent early withdrawal penalty. For more information about taxes and tax penalties on TSP withdrawals, review the pamphlet, “Tax Information: Payments From Your TSP Account” at www.tsp.gov. QUESTION 4: CORRECT ANSWER: B. You will continue to pay Social Security (FICA) taxes on your earnings as long as you continue to work. However, you can receive Social Security retirement benefits and work at the same time if you are over the full retirement age (age 65-67, depending on your year of birth). In this situation, your earnings record will be checked every year to determine whether the additional earnings you had will increase your monthly benefit. QUESTION 5: CORRECT ANSWER: D. Although CSRS has a more generous basic benefit computation formula than FERS, FERS is a threetiered retirement system that includes Social Security and the TSP in addition to the government annuity benefit. Depending on many variables that include age at retirement, performance of the TSP, salary rates and others, it is entirely possible for a FERS retiree to have as much income in their re-
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tirement years, or more, than a CSRS retiree who had retired at the same age with the same amount of federal service and similar salary history. QUESTION 6: CORRECT ANSWER: C. There are many things about FERS that make it more flexible than CSRS, except when it comes to additional earnings in retirement. Under FERS, there is an earnings limit for the FERS special retirement supplement and also for Social Security if you are under the full retirement age. If your earnings are above a certain limit, your benefit is offset by $1 for every $2 you earn above the limit. In 2017, the earnings limit is $16,920. For some people, delaying Social Security retirement and withdrawals from the TSP can provide more flexible financial and tax planning strategies. Answers A, B and D are all examples of FERS flexibility. To be sure, CSRS provides survivor benefits to the spouse of a deceased federal employee. However, FERS provides a lump sum death-in-service benefit to a surviving spouse in addition to a survivor annuity (if the employee had at least 10 years of service) along with the lump sum balance in the TSP account and widow’s benefits potentially payable from Social Security. The TSP gives flexibility and control over who will receive the money in your TSP account in the event of your death through the “Designation of Beneficiary” form (TSP-3) and Social Security may provide more generous benefits to your surviving dependent children. QUESTION 7: CORRECT ANSWER: A. The service computation date (SCD) that is published on your Standard Form 50, “Notification of Personnel Action” is used only for leave accrual. The various service computation dates (SCDs) determine an employee’s eligibility for a specific benefit or entitlement. There are four types of SCDs: leave, retirement, TSP and reduction in force. The “leave” SCD on your SF-50 is used to determine the date to move from four to six to eight hours of annual leave accrual. Your “retirement” SCD is determined at the time you request a retirement estimate or when you submit your retirement application. Be aware that there
Agencies That Administer Federal Benefits AGENCY OR COMPANY
ADMINISTERS THE FOLLOWING BENEFITS
WEBSITE
U. S. Office of Personnel Management
• FERS (Federal Employees Retirement System) • CSRS (Civil Service Retirement System) • FEHBP (Federal Employees Health Benefits Program) • FEGLI (Federal Employees’ Group Life Insurance Program) • FEDVIP, FLTCIP and FSAFEDS (see below for additional resources)
www.opm.gov
WageWorks, Inc.
FSA (Flexible Spending Account) employee-only benefit
www.fsafeds.com
BENEFEDS
• Federal Employees Dental and Vision Insurance Program (FEDVIP) • FEDVIP enrollment and premium payment • Administering the premium payment process for the Federal Long Term Care Insurance Program (FLTCIP) • Collect allotments for Flexible Spending Accounts for Federal Employees (FSAFEDS)
www.benefeds.com
Long Term Care Partners, LLC FLTCIP
www.ltcfeds.com
Social Security Administration
Social Security retirement, survivors and disability benefit
www.ssa.gov
Medicare
Sign-up, cost, coverage, supplements and other coverage, claims and appeals and more
www.medicare.gov
Thrift Savings Plan
Federal Retirement Thrift Investment Board
www.tsp.gov
is some service that can be used for leave credit which is not creditable toward retirement eligibility or computation. QUESTION 8: CORRECT ANSWER: A. The FERS Annuity Supplement is the bridge payment that is paid to a FERS retiree under age 62 who is entitled to an immediate, unreduced retirement benefit. It is paid by the Office of Personnel Management to retirees who meet certain eligibility requirements and is subject to an earnings limit similar to the Social Security earnings test. QUESTION 9: CORRECT ANSWER: B. A valid reason to stay in the TSP is to benefit from the low administrative fees, simplicity and protection from creditors. What could be easier than leaving your money right where it is to enjoy low administrative expenses of 38 cents for each $1,000 invested per year? Your TSP account cannot be made part of a bankruptcy estate, so it is protected from claims by creditors. QUESTION 10: CORRECT ANSWER: E. Both C and D are correct answers. Retirement benefits that are not subject to federal income tax in retirement include funds in Health Savings Accounts, Roth IRAs and the Roth TSP. These all are places where money can grow tax free and withdrawals will not increase your taxable income. Some people
receive Social Security benefits tax free, but if you have a government pension, investment income and other forms of retirement income, you will be taxed on 50 percent or 85 percent of your Social Security retirement income, depending on the amount of taxable income reported on your tax return.
GO STRAIGHT TO THE SOURCE
While you are employed, your agency is your primary point of contact for your federal benefits. After you separate from federal service, you will need to directly contact the agencies that administer those federal benefits. All of these agencies maintain valuable, accurate and up-to-date information available at the click of your computer mouse. As websites become more sophisticated, this information is becoming easier to access. Take charge of your benefits so that you can determine whether you are following good advice or just another report from the federal retirement grapevine. Of course, for those congressional proposals, the NARFE Legislative Department is your go-to source for the news and accurate updates. –TAMMY FLANAGAN IS NARFE FEDERAL BENEFITS INSTITUTE WEBINAR PRESENTER; MANAGER OF TAMMY FLANAGAN, LLC, AND SENIOR BENEFITS DIRECTOR AT THE NATIONAL INSTITUTE OF TRANSITION PLANNING, INC. SHE CONDUCTS RETIREMENT TRAINING AT FEDERAL AGENCIES, WRITES A WEEKLY COLUMN CALLED “RETIREMENT PLANNING” FOR WWW.GOVEXEC. COM AND IS A FREQUENT GUEST ON FEDERAL NEWS RADIO.
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Special Section
PHOTO ABOVE: From left, congressional staffers Julia Angelotti, Alex Robbins, Aaron Wasserman, Ashley Poling and Greg Stanford, Federal Managers Association government affairs director.
2017
Sen. Heidi Heitkamp
NARFE
LEGISLATIVE TRAINING
CONFERENCE By Gary Gately Photos by Mike Theiler
T
he political environment for federal employees and retirees has never been more precarious, with unprecedented threats to their pay, benefits and retirement. Lawmakers and conference presenters drove that message home – with a clarion call to action to fight cutbacks through grassroots activism – at the NARFE Legislative Training Conference March 12-15 in Alexandria, VA. The conference drew more than 300 participants, 170 of whom attended for the first time, representing 47 states, the District of Columbia and Puerto Rico. “While we have faced challenges in the past, the stars have never quite lined up in the way they do this year with a new president and a new Congress,” said NARFE National President Richard Thissen. “Those stars are now aligned to make drastic cuts to the pay and benefits you have rightfully earned. Our success during this congressional session will depend on how much you get involved.” The biennial NARFE conference featured advice on battling proposals that would harm federal employees and retirees. Speakers included six members of Congress (both Republicans and Democrats), key congressional aides, grassroots and budget experts and leaders from NARFE and the Federal Managers Association. Participants learned about the new NARFE Legislative Action Center and gained an overview of NARFE-PAC, which they supported with an infusion of $4,414 in one-time contributions. A total of 24 people joined the Sustainer program, giving $322 per month, or $7,728 over a twoyear period. NARFE has been lobbying against increases to current federal employees’ retirement contributions, higher premiums for the Federal Employees Health Benefits Program (FEHBP), devastating changes to the formula for the Thrift Savings Plan G Fund, and possible elimination of the Federal Employees Retirement System (FERS) for new hires.
PHOTOS BELOW, CLOCKWISE: Cliff Johnson of the National Journal offers advocacy tips; Rep. Rob Wittman and Jim Little, a local constitutent; the Region III delegation meets at the conference.
W W W. N A R F E . O R G
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2017 NARFE
LEGISLATIVE TRAINING
LEFT PHOTO: From left, Bruce Coleman and Dorman Otte, federation state legislative officer, meet with Kyle Thompson, legislative assistant for Rep. Rod Blum of Iowa. RIGHT PHOTO: Counterclockwise from right, Margaret and Kenn Barr and Keri Gibbs, president of the Idaho Federation, meet with Rebecca Alcorn, legislative correspondent to Sen. Michael Crapo of Idaho.
CONFERENCE
Calling it a dangerous precedent for all federal retirees, NARFE also opposes forcing postal retirees to enroll in Medicare or lose retirement benefits through the FEHBP. The Postal Reform Act, H.R. 756, approved by the House Committee on Oversight and Government Reform, would force 76,000 postal retirees to enroll in Medicare, at a cost of $1,600 apiece per year, or more, Thissen said.
PREPARATION PAYS OFF
“Since we are in trying times, I think this conference is one of the best in terms of presenting information. It’s prepared us to talk to Congress. I’m extremely concerned about benefits, especially health care. They’re going to tweak health care, with federal employees getting less. I’ve got more information and facts for advocacy.” —Steven Groom
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As NARFE members prepared for Capitol Hill meetings with lawmakers and their staff, they got advice on making the most of their visits from advocates experienced in lobbying for the federal community. At a breakout session, “Tailoring Your Message,” Jessica Klement, NARFE’s legislative director, urged participants to heed the Boy Scout motto: “Be prepared.” Whether meeting with the member of Congress or staff, Klement said, it’s imperative to be well-informed about the member’s background, committee assignments, stances on key NARFE issues, and NARFE voting record. “You try and find the thing that’s going to make them remember you,” she said. “Use what you know to try and tie it to what you’re passionate about to make that connection, because at the end of the day, it’s all about relationships.” Like others at the NARFE conference, Klement said she had expected Democrats to carry the Senate in November. Now, she said, “Congress is more polarized than ever. But it is reflecting a more polarized electorate. We as a country are very, very polarized.” And that does not bode well for federal employees and retirees. Many conservative Republicans in Congress, focused on deficit reduction, “tend to agree that federal employees are targets, and easy targets,” Klement said, “so it’s your job to take the message to the Hill to make sure that you don’t make yourself into a target.”
THE POWER OF YOUR VOICE
Rep. Anthony Brown, D-MD, told conference participants: “Americans deserve the best, most efficient and most responsive government we can possibly deliver, and we can’t deliver that if we make it hard to recruit and retain the most talented, the brightest and the hardest-working at the start.” Brown, who had served as lieutenant governor to former Maryland Gov. Martin O’Malley, said the clamor to reduce the size of the federal government jeopardizes critical
LEFT TO RIGHT: Robert Allen, NC federation presi- Charles Talley meets with Margaret Franklin, senior dent; Rep. Virginia Foxx; and David Moulton. legislative assistant to Rep. Alma Adams of NC.
Richard Thissen greets Rep. Barbara Comstock
functions like disease research, environmental protection and food inspections while making it more difficult for the federal government to recruit and retain top talent. He pointed out that 85 percent of federal employees live outside the Beltway and called on conference participants to advocate for NARFE’s legislative agenda. “One of the tools we have both in Congress and in communities throughout this country is the power of our voice, the voice of our resistance, the voice of persuasion, the voice letting Americans know that the agenda we see in front of us is a very dangerous agenda that will ultimately destroy or downsize programs we deliver to a deserving American population. We have our work cut out for us.” Sen. Heidi Heitkamp, D-ND, also called on participants to dispel the myth that the federal workforce is a bloated, inefficient bureaucracy. “The political narrative sometimes sees us as an opportune whipping person, as a federal employee,” Heitkamp said. “I don’t subscribe to that theory that the federal employees are the brunt of the problem and that we should make a federal employee an employee of last resort.” Like Brown, Heitkamp also suggested the damaging stereotype hurts federal recruitment efforts for critical positions from marine biologists to rural postal workers. “All those tools we used in the past to recruit, the tool box is getting smaller and smaller,” she said. In addition, recruiting millennials will prove more challenging, Heitkamp suggested. “Millennials think differently – of having a unified cause and mission,” she said. Rep. Barbara Comstock, R-VA, who has opposed cuts to federal benefits and supported paid family leave for federal employees, pointed to the crucial role of federal employees’ medical, space and science research. “We can’t balance the budget on the backs of federal employees,” Comstock said. On a hopeful note, she said she anticipates significant resistance to some of Trump’s budget proposals. “We know that in several past administrations’ budgets, often the federal employees have been a target,” Comstock said. “But usually the president’s budget is dead on arrival no matter what because of congressional oversight and how people want the money spent.”
Rep. Don Beyer
Richard Thissen introduces Rep. Jamie Raskin
A TIME OF UNCERTAINTY
One key strategy that congressional leaders may use to advance their fiscal policy agenda this year is budget reconciliation, noted David Reich, a senior fellow at the Center on Budget and Policy Priorities, where he focuses on issues related to the federal appropriations process. Created by the Congressional Budget Act of 1974, reconciliation is a fast-track process that can be used to enact considerable budget changes (for details, see story on p. 6). This W W W. N A R F E . O R G
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2017 NARFE
LEGISLATIVE TRAINING
CONFERENCE
LEFT TO RIGHT: Joyce Warner, FEEA executive director, Richard Thissen, Rep. Anthony Brown, and Renee Johnson, FMA national president.
Conference participants give a round of applause.
NARFE RESOURCES Go to www.narfe.org, click on Legislation and then select Legislative Training Conference on the left to access PowerPoint presentation from conference sessions.
year, reconciliation likely will be used as a deficit reduction measure by cutting programs, such as pensions for federal employees and retirees. “I don’t think that there has ever been a year with more uncertainty and such a range of uncertainty about possible outcomes,” said Reich, who has been watching the budget process over a 30-year period. Trump’s budget blueprint calls for an increase in defense spending ($54 billion) with cuts to most federal agencies, including a 29 percent cut to the State Department. Calling the appropriations process “antiquated,” Rep. Rob Wittman, R-VA, said that he wants to ensure that in the budget process, congressional representatives are aware of the “significance of the federal workforce so that we understand their contributions.” Wittman wants to make sure that the federal workforce is strong across all levels of experience. Noting that 30 percent of the federal workforce will retire in five years, he is concerned about the precarious knowledge base in the federal workforce. Federal employees have been under siege since the second day of Congress, when the administration passed the Holman Rule, which allows the government to single out federal employees, noted Rep. Don Beyer, D-VA, who is serving a second term representing Virginia’s 8th Congressional District, home to 76,000 federal employees. “This is a terrible rule. It doesn’t save the taxpayers money or reduce the deficit,” Beyer said. “People are blaming federal employees for every ill in America.” Yet, in recent years, federal employees have experienced steady erosion to their pay and benefits, Beyer noted. They have experienced a loss of pay due to cuts in retirement benefits, and for retirees there has been little or no cost-of-living adjustment (COLA) for the past three years. For 2017, the COLA has been a mere 0.3 percent. “This amounts to an increase of $3.60 — that’s not even a cup of coffee,” he said. Beyer also noted that beneficiaries likely will see an increase in Medicare Part B premiums as well as in Federal Long Term Care Insurance Program premiums. “You are doing more with less. It’s up to me and other representatives to stand up for you,” Beyer said. “I will do all I can to be a champion for federal employees.” The conference culminated in attendees walking the halls of Congress and meeting with their elected representatives. At the conclusion of the day, NARFE members gathered, alongside Hill staffers and legislators, for a reception to cap off their successful day of advocacy. Rep. Derek Kilmer, D-WA, joined the reception and cheerfully expressed his support of federal workers and retirees. Kilmer pointed out that “federal workers and retirees have contributed more to deficit reduction than any other group.” Two strong supporters of NARFE, Sen. Mark Warner, D-VA, and Rep. Gerald E. Connolly, D-VA, also stopped by the reception. Warner did not shy away from the fights that NARFE will face, but wholeheartedly said, “You’ve always had my back. I’ll always have your back on pay, retirement and making sure that the bargain that was cut is honored.” –GARY GATELY IS AN AWARD-WINNING FREELANCE WRITER BASED IN BALTIMORE WHO COVERS THE U.S. SUPREME COURT FOR TALK MEDIA NEWS. SUSAN BOSWELL, NARFE MAGAZINE EDITOR, CONTRIBUTED TO THIS ARTICLE.
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SUPER A N AT O M Y O F A
SUPER
ADVOCATE
E
By J. Cliff Johnson, III
ach day seems to bring with it news of yet another protest in America, with people taking to the streets both in support of and in opposition to new policy proposals. Some choose to make their voices heard through marches and rallies. Others prefer to use digital and social media to
share information with their networks. As some have observed, “This is what democracy looks like.” When it comes to effecting true change, the vast majority of Americans are doing it wrong. Advancing a specific policy position is hard work. It requires far more than shouting into the digital echo chamber or chanting slogans. These activities might soothe the soul but they don’t do anything to advance a piece of legislation on Capitol Hill. Depending on your position, these tactics might make things even worse. So what works? What can you do to advance a policy conversation or secure support from your lawmakers on a piece of legislation? We get this question frequently at the National Journal Leadership Council (www. nationaljournal.com). Our research team spent countless hours looking into what best-in-class advocates do to have an impact on public policy, building out the anatomy of a “super advocate.” What we can tell you is that super advocates do three things: they show up, they are visible and they are prepared.
THEY SHOW UP
There are dozens of adages about the importance of participating, or “showing up.” After all, you can’t win the game if you don’t show up to play. This is absolutely true when it comes to advocacy and is perhaps best summed up in a quote often – and erroneously – attributed to Thomas 36
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Jefferson: “We in America do not have government by the majority. We have government by the majority who participate.” While our elected representatives may have opinions on how to run the government and what policies to support, those opinions are formed by listening to the people in their districts. Those lawmakers who neglect to take the time to listen to the electorate often have very short and unpleasant terms in office. That’s important to keep in mind. Lawmakers don’t wake up in the morning and ask themselves, “What can I do for the good of the American people?” Instead, they ask themselves, “What do the people in my district want me to do on this issue?” High-impact advocates know this and so they show up – early and often. Your lawmakers won’t know how you want them to act on an issue unless you tell them. In fact, a 2013 report by the Congressional Management Foundation (CMF) found that lawmakers ranked “staying in touch with constituents” as the job aspect most critical to their effectiveness. So how do super advocates communicate with lawmakers? Once again, they show up – in person. Super advocates know that in-person visits with lawmakers or staff are the most effective way to influence their thinking on an issue,
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with individualized emails and letters following not far behind. A 2010 CMF survey of congressional staff, among other surveys, consistently backs this up. Of course, in-person visits don’t have to take place in Washington, DC. The best place to visit your lawmaker is in their district or state. Every lawmaker has a calendar of public events, including town halls, constituent meetings, office hours and so on. Sign up for your lawmaker’s email newsletter or visit their website to find these events. If you are unable to attend an event, then sending an individualized letter or email is also effective to let your lawmaker know a constituent in the district cares about an issue. Above all, be an active and engaged participant. That’s how super advocates show up.
THEY ARE VISIBLE
When super advocates do show up, they make sure they’re visible. That doesn’t mean wearing bright clothing or carrying signs. It means getting noticed in a manner that allows them to begin building a relationship with the lawmaker and staff. Building that relationship means finding a way to make contact with the lawmaker’s office on a quarterly basis, if not more frequently. Super advocates do this by asking questions at town hall meetings, making appointments to speak with staff in the district office and attending other constituent events such as community meetings, task force meetings and other public events. Super advocates find ways to make themselves heard in public forums. They politely introduce themselves to congressional staffers, and some even buttonhole reporters in attendance to make their case. More ambitious super advocates will work to organize others who also will speak out on issues. In some cases, this is nothing more than inviting a friend or colleague along to a town hall meeting. In other cases, it means taking on a leadership role and organizing a large group of friends and colleagues to attend a town hall or even creating an event (e.g., a chapter meeting of a club or membership organization) where the lawmaker could serve as a speaker. The key to becoming visible is repetition. 38
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Super advocates plan out a series of interactions with the lawmaker’s office across the year in a way that allows them to build credibility as a trusted constituent voice on the issue.
THEY ARE PREPARED
In addition to showing up and being visible, super advocates are prepared. They’ve thought through what they’re going to say when they step up to the microphone or into the district office. They know the lawmaker’s history on the issue at hand and how it affects the district or state. They’ve thought about how they’re going to enter the conversation. For a conservative lawmaker, advocates should frame the argument or “the ask” in economic terms. For a liberal lawmaker, advocates should enter the conversation from a more social or community-oriented position. Beyond having a specific argument or an “ask,” super advocates support their position with a brief but well-told story. And by brief, this means the length of an “elevator pitch.” It’s not easy and it takes practice, but research shows that a well-told story makes an argument more powerful and more memorable. After the meeting is over, the lawmaker may forget the specific data points you mentioned … but they’ll remember your story. Super advocates know this and so they work to hone and rehearse their stories. The stories don’t have to be perfect, but they do need to stay on message and they should be structured in a way that allows the lawmaker to be the hero. Super advocates also know that a well-crafted story becomes a tool for the lawmaker to use in justifying a vote to the local newspaper, at a town hall meeting or while speaking out on a piece of legislation. Above all, the story powerfully and memorably communicates that a constituent in the district cares deeply about an issue. That’s ultimately what super advocates do. They communicate with the lawmaker’s office to remind them their constituents want a specific action on an important issue. They do this by showing up, being visible and being prepared. —J. CLIFF JOHNSON, III IS A PRACTICE LEADER WITH NATIONAL JOURNAL LEADERSHIP COUNCIL AND WAS A PRESENTER AT THE 2017 NARFE LEGISLATIVE TRAINING CONFERENCE.
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PLAN AHEAD FOR LARGE TSP DEDUCTIONS
T
BY MARK A. KEEN
CFP®
taxes. In other words, the higher tax rates applied to the TSP which means the percentage of income an distribution will result in about $20,000 more in tax. individual pays in taxes increases as taxable income increases. Although tax-deferred retirement plans, This doesn’t even take into consideration what I refer to as such as the Thrift Savings Plan (TSP), offer tremendous stealth taxes – expenses and taxes you’ll incur as taxable intax benefits to participants, without planning, the come increases. For example, the progressive tax system may work against retirees who extra income will trigger higher Medicare Part B premiums. In would like to take large distributions from their TSP. addition, personal exemptions and itemized deductions begin For example, consider a coumarried couple filing jointly. to be phased out when gross ple who plans on using their TSP If the couple takes a $266,667 income exceeds $313,800. accounts to buy a vacation home withdrawal, their taxable With a little flexibility and when they retire. The budget for income will increase to at least planning, it may be possible to the home is $200,000, and their $366,667, putting them in the 33 avoid, or limit altogether, the strategy is to take a one-time, percent tax bracket. To be clear, negative consequences of using partial withdrawal from the TSP. they won’t owe 33 percent on your TSP for big ticket items. Not including TSP withdrawthe entire distribution. The first In this couple’s case, they may als, we’ll assume their taxable $53,100 will be taxed at 25%, realize another $53,100 in taxincome after retirement will be the next $80,250 ($233,350 able income before jumping to a $100,000, which puts them in $153,100) will be taxed at 28 higher tax bracket. With this in the 25 percent tax bracket. percent and the remaining will mind, one strategy would be to If the couple could distribbe taxed at 33 percent. That’s ute the money from the TSP the progressive nature of our tax limit their withdrawals to about $53,000 per year until they and remain in the 25 percent system. have pulled out enough money tax bracket, they would need Instead of distributing to net them $200,000 after to withdraw $266,667 to net $266,667, this couple will taxes. Assuming a 25 percent $200,000 after taxes. However, need to distribute a little over tax rate, this would take them given our progressive tax sys$286,000 to net $200,000 after approximately 5 years ($266,667 tem, the additional income from 2017 Tax Brackets: / $53,000). the TSP withdrawal will push Married Filing Jointly They’ll have to work with the them into a higher tax bracket, Tax Bracket Tax Rate TSP’s withdrawal rules, which resulting in more taxes. $0.00 + 10% means they’ll have to take To understand the conse$18,650 + 15% monthly withdrawals equal quences of taking large with$75,900 + 25% to $53,000 annually. Alternadrawals from the TSP, we need $153,100 + 28% tively, they could opt to take to know the tax brackets and $233,350 + 33% a partial withdrawal, transfer understand how they apply to $416,700 + 35% it to an individual retirement taxable income. In the table $470,700 + 39.6% account (IRA), and then take (right) are the tax brackets for a 40
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he United States has a progressive tax system,
BENEFITS RESOURCES NARFE offers members a wide range of information on federal benefits. Visit www. narfe.org/federalbenefits and www.narfe.org/ FederalBenefitsInstitute.
out $53,000 annually from the IRA. The downside to either strategy is that they must wait until they retire to start the withdrawals, which means they’ll have to wait five years after retirement before they will have enough funds pulled out of their TSPs to buy the home. For those retiring after age 59 ½, another option is to take an in-service withdrawal, transfer it to an IRA, and then distribute the money from the IRA in the necessary
installments. This strategy may shorten the wait time after retirement before realizing your goal. Where you park the distributions until the money is used depends on your circumstances. In some cases, rather than placing the cash in a taxable account, it may make sense to convert the distributions to a Roth IRA, and then subsequently distribute the money from the Roth IRA. You’ll also want to take into consideration state taxes, which haven’t been mentioned here due to the diverse rules from state to state. Tax-deferred retirement plans, including the TSP, offer tremendous tax benefits, but you’ll still need to plan ahead to maximize their potential. MARK A. KEEN, CFP®, IS PARTNER, KEEN & POCOCK, 10300 EATON PLACE, FAIRFAX, VA, AND AN INVESTMENT ADVISER REPRESENTATIVE AND REGISTERED PRINCIPAL OF THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA). SECURITIES AND ADVISORY SERVICES ARE OFFERED THROUGH SFA. EMAIL: MKEEN@KEENPOCOCK.COM.
NARFE NATIONAL LIFE MEMBERSHIP APPLICATION National Life Membership offers a hedge against future dues increases and affirms a member’s ongoing support of NARFE’s mission to serve federal employees and retirees. National dues are paid for life; applicable chapter dues are billed annually.
CONTACT INFORMATION o Mr. o Mrs. o Miss o Ms. Full Name _____________________________________________ Street Address _________________________________________ Apt./Unit ______________________________________________ City _______________________ State _____ ZIP _____________ Phone (__________) ____________________________________ Email ________________________________________________ Date of Birth _____ /_____ /_________ dd
mm
yyyy
Recruiter ID # (if applicable) _______________________________ Chapter Number (if applicable) ____________________________ (call 800-456-8410 for chapter information) MEMBERSHIP INFORMATION Member Number: _______________________________________ (New members) Membership is open to civilians in any agency of the federal or D.C. (before Oct. 1, 1987) governments eligible for a federal annuity.
Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin. Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes.
I am a (check all that apply)
o Active Federal Employee o Active Federal Employee Spouse
o Annuitant o Annuitant Spouse o Survivor Annuitant
Life Membership Fee Schedule Ages 30-39 40-50 51-55 56-60 61-65 66-70 71-75 76-80 81-90 91-100+
Single or Quarterly Payment Installments $1,796 $450.25 1,408 353.25 1,127 283.00 960 241.25 801 201.50 653 164.50 514 129.75 392 99.25 251 64.00 127 33.00
PAYMENT INFORMATION o Single Payment or o Quarterly Installments (4 payments) Life Membership fee amount: $ _____________________ PAYMENT OPTIONS o Check or Money Order (Payable to NARFE) o Charge my: o MasterCard o VISA o Discover o American Express Card No. _________________________________________ Expiration Date _____ /_______ mm
yyyy
Name on Card _____________________________________ Signature ________________________ Date ___________ MAIL THIS APPLICATION TO NARFE Member Records 606 N. Washington St. / Alexandria, VA 22314-1914 W W W. N A R F E . O R G
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41
The Informed Citizen
STATE ADVOCACY’S UPSIDE
G
ot taxes? In the “Got Milk” commercial, you chuckle at the milk mustache. The telltale sign of “Got taxes” is steam coming out the ears. If you’ve filed your federal and state
income taxes and feel your ears burning, you may want to be cognizant of the 1890 populist advice to raise less corn and more hell. NARFE members in Iowa, led by Dorman Otte, Federation State Legislative Officer, are using the NARFE Legislative Action Center to advocate for state legislation that would gradually increase the state income tax exemption for eligible seniors. Otte first appealed to federation and chapter leaders to get his prepared letter sent to legislators. Next, Otte engaged chapter and national members to use the Action Center to send his message to legislators, which could be edited and personalized. Instead of his guesstimate of the “20 letters at best” from the initial process, 159 members generated 171 messages to senators in support of state Sen. Brad Zaun’s bills, SF 34 and SF 36. The Action Center website portal was able to provide exact data about how many messages each state senator received. Simultaneously with the letter and message campaign, Otte led a small but committed group of NARFE members to a “NARFE on the Hill” event at the statehouse in Des
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At left, Arizona State Legislative Chair Vic Peterson and Rep. Tom O’Halleran
Moines. Otte and Iowa Federation President Bruce Coleman shared their experiences at the statehouse event with fellow NARFE members from across the country at the Legislative Training Conference’s session on state advocacy (more about the conference on pages 30-34). Legislative Action Center The new NARFE Legislative Action Center provides an easy way to send letters to your elected officials in Congress, your governor and your state legislators. From the NARFE homepage (www.narfe.org)
BY CHRISTOPHER FARRELL SENIOR ANALYST
select “Legislation” and then ”Take Action.” You can “Find Officials” by inserting a ZIP code and then a street address. Each of the federal and state official’s names are links to detailed information. Several additional federations are also considering state-specific campaigns through the new Action Center. Meeting Politicians Early In addition to potential tax savings, state advocacy has two other upsides: 1) meeting (and influencing) ambitious elected officials before they get to Congress and 2) establishing or improving our “brand” by participating in the shaping of subnational public policy. The Maryland and Virginia Federations are active members in advocacy coalitions, Seniors of Maryland and Transparency Virginia, respectively. Half the current members of Congress served in their state legislature or as governor, or both. Vic Peterson, Arizona Federation state legislative officer, knows this very well. Six of Arizona’s nine-member delegation in the U.S. House of Representatives had previous service in the state legislature. Both of the newest House members from Arizona, including Democrat Tom O’Halleran, who is pictured above, came directly from the legislature.
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2017
G FUND
F FUND
C FUND
S FUND
I FUND
MARCH
0.20%
-0.01%
0.12%
-0.08%
2.85%
FEBRUARY
0.18%
0.71%
3.97%
2.45%
1.44%
JANUARY
0.20%
0.23%
1.90%
2.16%
2.89%
YTD
0.59%
0.93%
6.07%
4.57%
7.35%
1 YEAR
1.92%
0.71%
17.20%
22.53%
12.12%
3 YEAR*
2.06%
3.11%
10.44%
7.42%
0.84%
5 YEAR*
1.95%
2.72%
13.36%
12.78%
6.18%
10 YEAR*
2.57%
4.53%
7.57%
8.19%
1.34%
L INCOME
L 2020
L 2030
L 2040
L 2050
MARCH
0.33%
0.48%
0.64%
0.71%
0.78%
FEBRUARY
0.77%
1.36%
1.96%
2.25%
2.51%
JANUARY
0.61%
1.04%
1.48%
1.70%
1.91%
YTD
1.73%
2.91%
4.13%
4.73%
5.28%
1 YEAR
4.72%
8.03%
11.06%
12.67%
14.21%
3 YEAR*
3.34%
4.50%
5.49%
5.97%
6.32%
5 YEAR*
3.97%
6.73%
8.22%
9.16%
9.97%
10 YEAR*
3.77%
4.72%
5.35%
5.63%
N/A
2017
*ANNUALIZED
*ANNUALIZED
RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP (For additional monthly returns, go to www.tsp.gov.) G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)
OPM RETIREMENT CLAIMS PROCESSING STATUS
2016
’17
For the Record
UNCERTAIN MARKETS BRING MIXED RETURNS FOR TSP IN MARCH
THRIFT SAVINGS PLAN FUND RETURNS
Claims Received
Inventory Avg # of Days (Steady State % Processed in to Process Case in is 13,000) 60 Days or Less (FYTD) More Than 60 Days
FEBRUARY 11,293 22,692 MARCH 5,741 19,211 APRIL 7,241 14,517 MAY 7,210 14,035 JUNE 5,929 13,529 JULY 9,238 15,562 AUGUST 6,818 16,334 SEPTEMBER 6,946 15,146 OCTOBER 7,326 16,677 NOVEMBER 5,065 16,019 DECEMBER 5,483 15,097 JANUARY 15,317 23,087 FEBRUARY 9,114 23,916
80% 82% 80% 80% 79% 79% 78% 77% 58% 60% 56% 51% 56%
96 118 92 103 115 110 112 100 91 94 95 89 104
FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. Source: OPM 44
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Market expectations for economic growth became less certain in March. As a consequence, the C Fund managed only a very small gain while the S Fund generated slightly negative returns. International stocks fared better with the I Fund showing sizable gains helped by the weakness of the U.S. dollar. Meanwhile, the Federal Reserve raised rates by a quarter percent as expected, leaving the F Fund almost unchanged. All of the L Funds gained for the month. —BY SEAN MCCAFFREY, DEPUTY CHIEF INVESTMENT OFFICER, THRIFT SAVINGS PLAN
COUNTDOWN TO COLA
T
he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.26 percent in February 2017. To calculate the 2018 cost-of-living adjustment (COLA), the indices of July, August and September 2017 will be averaged and compared with the 2016 third-quarter average of 235.057. The percentage increase, if any, determines the COLA. February’s index, 237.477, is up 1.03 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. February’s index is 0.89 percent higher than the December 2016 base index of 235.390.
The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes. MONTH
CPI-W
Monthly % Change
% Change from 235.057
OCTOBER 2016
235.732
+0.10
+0.29
NOVEMBER
235.215
-0.20
+0.06
DECEMBER
235.390
+0.07
+0.14
JANUARY 2017
236.854
+0.62
+0.76
FEBRUARY
237.477
+0.26
+1.03
MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER
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NARFE News
DID YOU KNOW THAT...
SECURE THE FUTURE
NARFE MAKES STRIDES TO FUTURE
N
ARFE recently has taken great strides in evolving into an association that is more relevant and responsive to both current and prospective members. At the 2016 Biennial NARFE National Convention, delegates recognized the recruitment and retention obstacle posed by a mandatory chapter membership model, and voted to make membership in a local chapter optional. At the same convention, delegates voted to adopt a One Member, One Vote policy, allowing each member a say in the association’s governance and freeing NARFE from an expensive, labor-intensive election process. NARFE developed and expanded the NARFE Federal Benefits Institute, offering webinars to address critical and complex benefit issues. The association addressed the need for benefits information, recognizing that years of budget cuts had left federal employees with limited access to human resources staff and that federal retirees faced unacceptable wait times when phoning or emailing the Office of Personnel Management (OPM). The NARFE database has been successfully migrated in-house and converted to a fully supported, far more flexible platform. This is a substantial upgrade from a database hosted by an outside vendor with an unstable platform. The migration enhances our membership marketing through sophisticated tracking and data analysis.
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It also allows for critical, continuous database updates and positions the association to transition the database architecture to meet modern standards. NARFE is poised to hire a professional Executive Director. Realizing that the term limits imposed on an elected president led to a cycle of steep learning curves, new agendas and general instability, the National Executive Board voted to add the Executive Director position. The NARFE President, as a distinguished member of our community, will now extend his or her role as the “face” of NARFE, focusing on representing the federal community on Capitol Hill and with the association’s important coalition partners. The Executive Director, with successful experience in business management in the nonprofit field, will lead the headquarters staff. As the next strategic planning cycle begins, NARFE faces a number of challenges in the external environment, which include the following issues: Unprecedented legislative threats have the potential for catastrophic outcomes for active and retired federal employees. While NARFE successfully fought off $318 billion in cuts to federal pay and benefits introduced in the 2016 House budget as well as $170 billion in cuts proposed by the Senate, these proposals will serve as blueprints for the new administration and Congress. Legislative
NARFE’s popular webinars are available online within 48 hours of the original broadcast? Access the recorded versions at www. narfe.org/member/Federal BenefitsInstitute (login required). You also can download a transcript of the Q&A sessions and view the slides from the programs. NARFE’s Federal Benefits Institute helps you take charge of your benefits!
threats to active and retired federal employees have greatly intensified. Our government is emboldened by an electorate that wants drastic action on cost savings and federal debt reduction as well as a speaker who has shown intent to reduce the federal deficit and national debt. Membership growth challenges remain, although recruitment and retention strategies have decreased the pace of membership decline. NARFE’s 2016 year-end total membership was 215,760, down 9,798, or 4 percent, from the close of 2015. These numbers reflect continued improvement over the past few years in reducing the degree of net loss of members and attrition rate. Despite progress, significant challenges remain. The strategic planning team and committee, chaired by NARFE National Secretary/Treasurer Jon Dowie, met for two days in March to continue the important work that will lead to a more secure future for NARFE. CORRECTION: In the state tax roundup on p. 40 of the April issue, information for North Carolina was incorrect. Deductions for certain taxpayers of up to $4,000 for federal, state or local government retirement benefits or up to $2,000 for private retirement benefits are no longer available as of 2014. NARFE regrets the error.
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Attn: Federal Employees and Retirees
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Federal Employees and Retirees may be eligible for a pair of Oticon Opn™ 3 hearing aids for $0 out-of-pocket.* Your brain works at incredible speeds to process sound. Finally there’s a hearing device that can keep up. Only Oticon Opn uses BrainHearing™ technology to process all the sounds around you exceptionally fast. Oticon Opn takes the work out of hearing, so you can enjoy a more effortless, natural hearing experience.
Take advantage of your $2,500 hearing benefit. Call YHN at 877-696-5335.
Your Hearing Network gives you easy access to a network of carefully screened hearing care professionals and a wide selection of digital hearing aids.
* Disclaimer: Your out-of-pocket costs may vary depending on plan benefits, eligibility, deductible, co-insurance and model of device chosen. This is not a guarantee of coverage or payment. Benefit is not available through all insurance plans. Please consult your plan for coverage details.
Active and Retired Federal Employees ...
Join NARFE Today!
The only organization dedicated solely to protecting and preserving the benefits of all federal workers and retirees, NARFE informs you of any developments and proposals that affect your compensation, retirement and health benefits, AND provides clear answers to your questions.
Who Should Join the National Active and Retired Federal Employees Association? If your future security is tied to federal retirement benefits – federal retirees, current employees, spouses and individual survivors – you should join NARFE.
NARFE MEMBER BENEFITS
• Get monthly issues of narfe magazine with news and insights for the federal community. • Access the NARFE Federal Benefits Institute for powerful resources to help you fully understand and manage your benefits. • Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits. • Visit the Member Perks page for a full listing of the many time-, money- and hassle-saving benefits available only to NARFE members.
NARFE MEMBERSHIP APPLIC ATION q YES. I want to join NARFE for the low annual dues of $40. q Mr. q Mrs. q Miss q Ms.
____________________________________________________
Full Name
____________________________________________________
Street Address
PAYMENT OPTIONS q Check, Money Order or Bill Pay (Payable to NARFE) q Bill me (NARFE membership will start when payment is received.) q Charge my: q MasterCard
q VISA q Discover
q AMEX
________________________________________________ Card No. Expiration Date _____ /_________
____________________________________________________
Apt./Unit
____________________________________________________
City
State
ZIP
____________________________________________________
Phone
____________________________________________________
I am a (check all that apply) q Active Federal Employee q Active Federal Employee Spouse q Annuitant
1Q6
q Annuitant Spouse q Survivor Annuitant
q Please enroll my spouse _______________________________________________
Spouse’s Full Name
_______________________________________________ Spouse’s Email
THREE EASY WAYS TO JOIN 1. Complete this application and mail with your payment to NARFE / Member Records / 606 N. Washington St. / Alexandria, VA 22314-1914
2. Join online at www.narfe.org. 3. Call 800-627-3394, Monday through Friday, 8 a.m. to 5 p.m. ET.
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________________________________________________ Name on Card ________________________________________________ Signature ________________________________________________ Date
TOTAL DUES $40 Annual Dues X ___________ = ___________ Per Person # Enrolling Total Dues Dues payments are not deductible as charitable contributions for federal income tax purposes.
MAY WE THANK SOMEONE? If applicable, please provide the name, membership and chapter number of the member who introduced you to NARFE: ________________________________________________ Recruiter’s Name ________________________________________________ Recruiter’s Membership ID ________________________________________________ Recruiter’s Chapter Number Looking to meet others in the federal community and participate in NARFE at a local level? Call 800-627-3394 to learn about a NARFE chapter in your area. Or, if known, add Chapter # _________________________
NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties without your express permission.
NARFE’s Dues Withholding Program What is dues withholding? It is a dues-payment method that gives NARFE members (retirees) the option of having their annual NARFE membership dues deducted from their annuities on a monthly basis. Advantages • Save 15% off your annual NARFE dues! • Sign up your spouse and double your savings! • You’ll never get another dues reminder from us! • Your monthly payment is affordable and convenient! • You may cancel your dues withholding at any time!
How does it work? One-twelfth of your total dues is automatically deducted from your monthly annuity. Your monthly deduction is determined by the following formula: (NARFE dues ÷ 12) + (Chapter dues - if applicable ÷ 12) = Total Monthly Deduction How do I sign up? It takes 60-90 days to process your application. Once the process is complete, you will receive a special membership card distinguishing you as a NARFE dues-withholding member.
To learn more about dues withholding, call 800-627-3394. Retirees, spouses of retirees and annuitant survivors are eligible for dues withholding.
NARFE Dues Withholding Application for Retirees YES. I want to enroll in NARFE’s Dues Withholding Program (Annual NARFE dues of $34 and, if applicable, Chapter dues of record to be withheld annually.) Social Security Number (9-digit number)
– Mr.
Mrs.
Civil Service Annuity Number
– Miss
C S
Ms.
–
–
–
(Include prefix, CSA or CSF) (Include any applicable suffix)
Full Name ______________________________________
NARFE MEMBERSHIP INFORMATION
Street Address __________________________________
NARFE Membership ID ____________________________________
Apt./Unit _______________________________________
NARFE Chapter # (If applicable) _______________________________
City _________________________ State _____ ZIP _____ Phone (__________) ______________________________ Email __________________________________________ Date of Birth _________ /_________ / ____________________ dd
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yyyy
YES. I Also Authorize My (NARFE Member) Spouse’s Dues To Be Withheld From My Annuity. (Additional annual dues of $34 and, if applicable, chapter dues to be withheld annually.) If YES, enter spouse’s information below. Spouse’s Name ___________________________________________ ________________________________________________________ Spouse’s Membership ID ___________________________________
AUTHORIZATION (Withholding will begin in 60-90 days). No payment should be forwarded with application. I authorize the United States Office of Personnel Management to make appropriate deductions from my annuity payments, not to exceed the amount certified by the National Active and Retired Federal Employees Association as the amount of dues for which I am annually obligated, in accordance with elections I made above, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I made above: Please allow 60-90 days for processing. I understand that this authorization shall be valid until NARFE receives and processes my written notice of cancellation in accordance with its agreement with the Office of Personnel Management and that any disputes regarding this authorization shall be a matter between NARFE and myself. I hold the Office of Personnel Management harmless for any erroneous allotment deduction made pursuant to this authorization. ___________________________________________________________________________
______________________________
Signature of Annuitant or Survivor-Annuitant
Date
Dues payments and gifts or contributions to NARFE are not deductible as charitable contributions for federal income tax purposes. MAIL THIS FORM TO: NARFE, ATTN: Member Records, 606 N. Washington St., Alexandria, VA 22314-1914 www.narfe.org 800-627-3394 rr@narfe.org Do not send money with this form
DW-2 (11/16)
Member Perks
SAVE MONEY WITH NARFE PERKS NARFE appreciates your service, and so do businesses across the country. Whether you are planning your next vacation or planning for retirement, members can save money on everyday purchases, thanks to our Affinity Partners. It’s just one more way we’re able to say “thank you” for being a NARFE member. FINANCE AND LEGAL
enhanced dental insurance and longterm care.
PRODUCTS
MOVING SERVICES
InFirst Federal Credit Union 800-328-1500 www.infirstfcu.org As a member of NARFE, you have the privilege of joining InFirst Federal Credit Union, which has been serving active and retired federal employees since 1935. The credit union offers extensive services at competitive rates to members nationwide at 5,000+ shared branches, 55,000 surcharge-free ATMs and 24/7 phone access. Accounts are insured by NCUA up to $250,000.
INSURANCE
GEICO 800-368-2734 www.geico.com/fed/narfe GEICO offers a special discount opportunity for NARFE members. To find out how much you could save, visit our website or call today and mention that you are a NARFE member. Have your current coverage information available in order to secure a comparable quote. Your completed quote will help benefit NARFE! For complete terms and conditions, visit www.narfe.org/memberperks.
NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed and administered by Mercer Consumer, exclusively for NARFE members: senior age whole life, term life, Medicare supplements, hospital income plan, short-term recovery insurance, pet insurance, accidental death and dismemberment, cancer care, 50
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Bekins Van Lines 800-248-4810 narfe@bekins.com All NARFE members will receive contracted pricing for all interstate shipments. This will apply to packing, transportation and full-value coverage against damages. Please mention you are a NARFE member.
Omaha Steaks 800-228-9055 www.omahasteaks.com/ NARFE Since 1917, Omaha Steaks has been delivering customers the finest gourmet steaks, seafood, poultry, pork, sides and desserts. Omaha Steaks make memorable gifts for any holiday, or you can enjoy a gourmet meal right at home. NARFE members can enjoy FREE SHIPPING on select combos and an additional 10% DISCOUNT at checkout! If calling, use promo code YTZ.
Wheaton World Wide Moving 800-248-7960 narfe@wvlcorp.com At Wheaton, we know interstate relocating is much more than trucks and boxes. Moving is not simply an address change. It’s a life change. With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation. We offer you, as a NARFE member, benefits to help you have a positive interstate relocation experience. Call today and mention you are a NARFE member to start the moving process.
NARFE MERCHANDISE
NEW
Purchasing Power 866-670-3479 purchasingpower.com/NARFE
With Purchasing Power, thousands of brand-name products are within reach. As members of NARFE, you can buy today and pay over time through payroll or annuity allotment. Choose from the latest computers, appliances, vacation packages and more. Never worry about hidden fees, credit checks or interest. Pay over 6 or 12 months, and you’re done. Save 5% with code NARFEVIP.
TELECOMMUNICATIONS
NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.com As the official provider of NARFE merchandise, the NARFE General Store offers NARFE-approved name badges, business cards, clothing, accessories, cups and mugs, plaques and clocks, and much, much more. Check out our online catalog for our customizable product line.
Verizon FiOS www.narfe.org/memberperks NARFE members can save up to $10 a month on a new qualifying Triple Play bundle with Verizon FiOS Internet, TV and home phone service – savings of up to $120 per year. The FiOS 100% fiberoptic network delivers award-winning broadband and entertainment to your home. Only FiOS Internet customers get upload speeds as fast as their download speeds. With FiOS TV, 625+
channels are available, including 185+ in HD, and over 130,000 On Demand titles, thousands free. This exclusive onlineonly savings is only available to new Verizon customers or those upgrading to the Triple Play Package.
phone number or website above; cannot be redeemed at individual hotels. Choice Hotels brands are: Comfort Inn, Comfort Suites, Sleep Inn, Ascend Collection, Cambria, MainStay Suites, Suburban, EconoLodge, Clarion, Quality and Rodeway Inn.
TRAVEL
Alamo 800-462-5266 www.alamo.com Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call or visit our website today and reference Contract ID 262544.
Budget Car Rental 800-633-3469 www.budget.com Budget Car rental was founded in 1958 for the “budget-minded” renter. Today, with approximately 3,500 locations around the world, Budget is a leading rental car supplier now offering discounts to members of NARFE. Call or book your reservation now at Budget. com using the NARFE BCD number D871500.
Choice Hotels International 800-258-2847 www.choicehotels.com With 6,200 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer. Advance reservations required through
WELLNESS
HearUSA NEW www.hearusa.com/narfe National 800-CAR-RENT www.nationalcarrental.com You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation, call National Car Rental at 1-800-CARRENT® and reference Contract ID 5282909. For complete terms and conditions, visit www.narfe.org/ memberperks.
Avis Car Rental 800-633-3469 www.avis.com Avis Car Rental is one of the world’s best-known car rental brands with approximately 5,500 locations in more than 165 countries. Avis has a long history of innovation in the car rental industry and is one of the world’s top brands for customer loyalty. Call or book your reservation now at Avis.com using the NARFE AWD number A701900.
use promo code 8000002694 when calling or booking online.
Wyndham Hotel Group 877-670-7088 NARFE members receive up to 20% off the “Best Available Rate” at participating locations. Call and give the agent your special discount ID number, 8000002694, at time of booking to receive discount. Call to reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®. Advance reservations required through phone number above; cannot be redeemed at individual hotels.
Wyndham Extra Holidays NEW 800-428-1932 www.extraholidays.com Excellent service and the finest comforts are standards you can always rely on with Wyndham Extra Holidays. With more spacious floor plans than a regular hotel, you can enjoy a One-, Two- or Three-Bedroom suite with separate living areas and partial or fully equipped kitchens. Please
The Nation’s Most Trusted Name in Hearing Care. Choose from 250+ hearing aids from 11 manufacturers with $0 co-pay for many plans. Wireless. Bluetooth. Smartphone compatible. Nearly invisible. Risk-free 60-Day trial. Free follow-up care. Free 3-Year warranty. Call 1-855-845-2706 to see if you qualify for 2 FREE hearing aids.
Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-ofthe-art ultrasound technology in your neighborhood. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website.
NEW
Sunrise Senior Living www.SunriseSeniorLiving.com Sunrise Senior Living, a leading provider of high-quality, individualized, senior living services, offers NARFE members a special, discounted rate. Mention code: NARFE-discount during your visit and receive a one-time 5% off of suite/room rates at any of Sunrise’s U.S. communities for one year. For a complete list of Sunrise locations, visit www.SunriseSeniorLiving.com. * Void where prohibited by law. Discount not valid for skilled nursing admissions. Restrictions may apply. Discount not valid for respite/short-term stays of fewer than 90 days. May not be combined with other discounts or offers. Discount valid for a period of twelve (12) consecutive months only.
NARFE Member Perks are designed to provide NARFE members with a quality option in their search for commonly used products and services. NARFE makes no guarantee on any products and services listed and encourages its members to shop and compare before making a decision on any financial matter. Check out Member Perks in the NARFE website for more details! W W W. N A R F E . O R G
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The Way We Worked
DID YOU KNOW?
ON GUARD FOR THE PRESIDENT In this photo, circa 1910, a U.S. Park Policeman patrols near the State, War and Navy Building, now known as the Eisenhower or Old Executive Office Building in Washington, DC. Although the present organization dates from the 1860s, its origins can be traced back to the 1790s when watchmen were hired to guard federal property in the newly created District of Columbia. PHOTO from the Records of the National Archives History Office, Records of the Office of Public Buildings and Public Parks of the National Capital, National Archives; in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. To join, visit http://shfg.org. 52
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The United States Park Police is one of the oldest uniformed federal law enforcement agencies in the United States and is responsible for policing many of the famous monuments in the United States, including enforcement of the no-drone zone in Washington, DC, and national parks. The force includes a Horse Mounted Unit and Aviation Unit, responsible for transporting the president and other dignitaries, according to the agency website at www.nps.gov/uspp.
B Bu ig tt ge on r s
o ts N rac nt
Co
“My friends all hate their cell phones… I love mine!” Here’s why.
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Say good-bye to everything you hate about cell phones. Say hello to the Jitterbug Flip. “Cell phones have gotten so small, I can barely dial mine.” Not the Jitterbug ® Flip. It features a large keypad for easier dialing. It even has a larger display and a powerful, hearing aid-compatible speaker, so it’s easy to see and conversations are clear. “I had to get my son to program it.” Your Jitterbug Flip set-up process is simple. We’ll even program it with your favorite numbers. “What if I don’t remember a number?” Friendly, helpful Personal Operators are available 24 hours a day and will even greet you by name when you call. “I’d like a cell phone to use in an emergency.” Now you can turn your phone into a personal safety device when you select a Health & Safety Package. With 5Star ® Service, in any uncertain or unsafe situation, simply press the 5Star button to speak immediately with a highly-trained Urgent Response Agent who will confirm your location, evaluate your situation and get you the help you need, 24/7.
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Enough talk. Isn’t it time you found out more about the cell phone that’s changing all the rules? Call now, Jitterbug product experts are standing by.
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Please mention promotional code 105431.
1-877-444-1003
We proudly accept the following credit cards:
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www.JitterbugDirect.com
IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. Plans and Services require purchase of a Jitterbug phone and a one-time setup fee of $35. *Monthly fees do not include government taxes or assessment surcharges and are subject to change. Coverage is not available everywhere. 5Star or 9-1-1 calls can only be made when cellular service is available. 5Star Service will be able to track an approximate location when your device is turned on, but we cannot guarantee an exact location. 1We will refund the full price of the Jitterbug phone and the activation fee (or setup fee) if it is returned within 30 days of purchase in like-new condition. We will also refund your first monthly service charge if you have less than 30 minutes of usage. If you have more than 30 minutes of usage, a per minute charge of 35 cents will be deducted from your refund for each minute over 30 minutes. You will be charged a $10 restocking fee. The shipping charges are not refundable. There are no additional fees to call GreatCall’s U.S.-based customer service. However, for calls to a GreatCall Operator in which a service is completed, you will be charged 99 cents per call, and minutes will be deducted from your monthly rate plan balance equal to the length of the call and any call connected by the Operator. Jitterbug, GreatCall, and 5Star are registered trademarks of GreatCall, Inc. ©2017 GreatCall, Inc. ©2017 firstSTREET for Boomers and Beyond, Inc.
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When you pay by check, you authorize us to use information from your check to clear it electronically. Funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.
For Faster Service Call: 1-800-543-4810 or visit www.Haband.com/bestdeals