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Volume 94 • Number 11
COVER STORY
TIPS FOR SELECTING A HEALTH CARE PLAN PROTECTING YOUR SPOUSE IN RETIREMENT
Federal Employee Program
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* The insured may need to submit for reimbursement. State and/or local taxes may apply. Prices and product subject to change. Price shown includes the cost of comprehensive hearing exam. Examination and testing for prescribing of hearing aids is covered under the Blue Cross Blue Shield Association’s Service Benefit Plan (also known as the Federal Employee Program or FEP). The member should confirm that the provider rendering the hearing exam participates with their local Blue Cross Blue Shield plan. The Service Benefit Plan will pay a hearing aid benefit up to $2,500 total every 3 calendar years for adults age 22 and over, and up to $2,500 total per calendar year for members up to age 22. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in your Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under the Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefits first before accessing the savings of the Blue 365® Discount Program. To find out what is covered under your policy, contact Service Benefit Plan. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. These items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the the Service Benefit Plan, BCBSA, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time. Available at participating locations until 12/31/2018. Beltone is made available through Blue365, which provides exclusive health and wellness deals and is a program of Blue Cross Blue Shield Association, an association of independent Blue Cross and Blue Shield Companies. Beltone is an independent company providing discounts on hearing aids. © 2017 GN Hearing Care corporation. All rights reserved. Beltone is a trademark of GN Hearing Care Corporation. Apple, the Apple logo, iPhone, iPad, iPod touch and Apple Watch are tradmarks of Apple Inc., registered in the U.S. and other countries.
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SPECIAL SECTIONS
38 Open Season 2018: Premiums
52 FEDcon18 Coverage WASHINGTON WATCH
24
6
NARFE Files Brief with U.S Supreme Court
7
President Trump Reiterates Federal Employee Pay Freeze Proposal
8
NARFE Supports Federal Salary Council Recommendations
8
Get Ready for LEGcon19 — NARFE’s Legislative Training Conference
11
NARFE Bill Tracker
COVER STORY TIPS FOR SELECTING A HEALTH PLAN. Tammy Flanagan guides current and retired federal employees and their family members through the numerous options available during Open Season.
COLUMNS
4
A Farewell
58 Managing Money DEPARTMENTS
32
SETTING UP BENEFITS FOR SURVIVORS. Mark Keen helps retirees and soon-to-be retirees sort out survivor annuity options for their spouses.
16 Questions & Answers 60 For the Record 62 NARFE News 70 Member Perks
On the Web
72 The Way We Worked
VISIT US ONLINE AT:
www.narfe.org LIKE US ON FACEBOOK:
NARFE National Headquarters FOLLOW US ON TWITTER:
@narfehq
ON THE COVER
Illustration by GRAPHEK W W W. N A R F E . O R G
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NOVEMBER 2018 | Volume 94 | Number 11
EDITOR Helen Mosher ASSISTANT EDITOR Christopher Johnson COMMUNICATIONS ASSISTANT Precious Dorch-Robinson GRAPHIC DESIGN GRAPHEK EDITORIAL BOARD Kathryn Hensley, Barbara Sido EDITORIAL OFFICE: NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Email: communications@narfe.org ADVERTISING SALES: Warren Berger Media People Inc. 122 East 42nd St., Suite 1622 New York, NY 10168 Phone: 212-779-7172, ext. 223 Email: wberger@mediapeople.com
NARFE FOR THE VISUALLY IMPAIRED ON THE TELEPHONE: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-5047300 or go to www.nfbnewsline.org. ON DIGITAL AUDIO: Issues of NARFE Magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider. The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.
National Active and Retired Federal Employees Association NATIONAL OFFICERS Pending at press time, President; natpres@narfe.org KATHRYN HENSLEY, Secretary/Treasurer; natsectreas@narfe.org EXECUTIVE DIRECTOR BARBARA SIDO, execdir@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 Kathy Adams (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) TEL: 302-697-6650. CELL: 302-561-5660 EMAIL: adamskhawaii@aol.com REGION III Clarence Robinson (Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 EMAIL: crobin8145@att.net
REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: pappysdad@cobridge.tv REGION VII Rodney L. Adelman (Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: narfe7vp@cox.net REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) TEL: 707-644-7565 EMAIL: HLZajac125@gmail.com
REGION IV Robert L. Helfrich (Illinois, Indiana, Michigan, Ohio and Wisconsin) TEL: 317-501-1700 EMAIL: rvp4@narfe.org
REGION IX Richard Wilson (Alaska, Idaho, Montana, Oregon and Washington) TEL: 253-210-5609, CELL: 425-736-6899 EMAIL: narfe1404@comcast.net
REGION V Cindy Reneé Blythe (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) TEL: 785-256-1450 EMAIL: mrsdocbusyb@yahoo.com
REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) TEL: 703-830-6590, CELL: 703-201-6304 EMAIL: wshack1951@aol.com
HERE’S HOW TO CONTACT US…
TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER:
CALL (TOLL-FREE) 800-456-8410 OR GO TO www.narfe.org TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:
CALL (TOLL-FREE) 800-456-8410 EMAIL memberrecords@narfe.org OR GO TO www.narfe.org, log in and click on “Update My Record”
TO REACH A FEDERAL BENEFITS SPECIALIST:
EMAIL fedbenefits@narfe.org NARFE HEADQUARTERS
606 N. Washington St. Alexandria, VA 22314 703-838-7760 Hours of operation: Monday-Friday, 8 a.m.-5 p.m. ET
www.narfe.org
narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $40. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2018, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in NARFE Magazine, but at the same time we will not undertake to guarantee the reliability of our advertisers.
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A FAREWELL
I
’d like to take this opportunity, in my final column as NARFE’s National President, to thank you. As I have said often, we are
all in this together, and together we have developed a culture of change and innovation that positions our great association for continued success. As president, it has been my great pleasure to take the good fight to Capitol Hill and, along with our mighty advocacy team here at headquarters, stave off the many threats to our federal benefits. I am proud to have been associated with our powerful grassroots advocates across the country. Together we have successfully battled relentless attacks on the federal community and ushered in a modernized Thrift Savings Plan (TSP) with flexibility critical to its continued success. The creation of the marketing department, which includes the Federal Benefits Institute, was another
NARFE’s Mission Statement
highlight of my tenure here at headquarters. The monthly webinars have been so well received. Each new broadcast delivers vital information and guidance to all NARFE members while attracting additional federal employees and retirees to join our ranks. With the full library housed on the NARFE website, webinars have proven to be a great recruitment and retention tool, one of the key factors in reducing annual membership losses by approximately ⅔ since 2014. Stewardship of NARFE’s partnership with the Alzheimer’s Association has been an honor. We will close the year having reached our goal of $13 million, contributed by NARFE members, to Alzheimer’s research. In addition, we have begun NARFE-wide participation in the Alzheimer’s walk, which allows the association to support this important cause at the national and local levels. I leave NARFE with the confidence that our executive director and professional staff are strong and innovative, that our newly elected National Executive Board will continue to provide excellent policy guidance and that you, the membership, will participate in and support our ongoing efforts to serve the federal community. Together we ensure NARFE’s future success.
RICHARD G. THISSEN ED. NOTE: At press time, the results of the 2018 NARFE presidential election were still pending. These results are available at www.narfe.org. The new president will introduce himself in the December issue of NARFE Magazine.
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Washington Watch
NARFE FILES BRIEF WITH U.S. SUPREME COURT TO PROTECT FEDERAL RETIREES FROM STATE TAX DISCRIMINATION
N
ARFE weighed in on the U.S. Supreme Court case, Dawson v. Steager, on September 4, by filing an amicus curiae, or “friend of the court,” brief in support of a
former U.S. Marshal, James Dawson, challenging West Virginia’s discriminatory tax treatment of his federal annuity. The Supreme Court’s ruling in Dawson v. Steager will determine whether federal retirees in West Virginia and throughout the country will be subject to a different set of state tax rules than their state government counterparts.
“State governments must not be permitted to carve out exemptions to the general rule, set forth in Davis v. Michigan, that state and federal government pension income must be subject to the same tax treatment,” said NARFE President Richard G. Thissen. He continued: “If state governments are, more and more states will follow the lead of West Virginia, and one exemption after another will be granted to differing classes of state government retirees. The rule—that federal retirees must be treated the same as state 6
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government retirees—will face a death by a thousand cuts.” James Dawson worked as a deputy U.S. Marshal before receiving a presidential appointment to be the U.S. Marshal for the Southern District ACTION ALERT!
of West Virginia. He currently receives a retirement annuity through the Federal Employees Retirement System (FERS), and sought an exemption from state taxation for all of his FERS annuity income. West Virginia law allows state law enforcement retirees to be exempt from state income taxation on all retirement benefits earned by state law enforcement officers from four West Virginia retirement plans. In contrast, West Virginia law only allows Mr. Dawson to exempt a portion of his FERS income from state taxation. Mr. and Mrs. Dawson are challenging the West Virginia State Tax Department’s denial of their claim to exempt from state income
N OV E M B E R
Have you recently completed an in-person advocacy activity on behalf of NARFE, such as a town hall meeting or a meeting with your congressional office? Tell the advocacy department about your engagements with legislators and congressional staff via the Congressional Meeting or Event Feedback form on NARFE’s Legislative Action Center (www.narfe.org/legislation).
taxes all of the income earned from James Dawson’s federal retirement annuity based on his service as a U.S. Marshal. That denial was upheld by a decision of the Supreme Court of Appeals of West Virginia. The Dawsons then appealed to the Supreme Court, which agreed to hear Dawson v. Steager earlier this year. Specifically, the Supreme Court will decide whether West Virginia’s differing tax treatment
of the state and federal retirement income violates the doctrine of intergovernmental tax immunity, as codified in federal law (4 U.S.C. 111), and as decided by Davis v. Michigan. In Davis v. Michigan, the Supreme Court held that a state may not impose a heavier tax burden on retired federal government employees than retired state and local government employees, unless the discriminatory treatment is
PRESIDENT TRUMP REITERATES FEDERAL EMPLOYEE PAY FREEZE PROPOSAL
P
resident Trump submitted his alternative pay plan to Congress on August 30, expressing his intent to freeze federal pay rates for calendar year 2019. “At a time when the president continues to praise strong economic conditions and rising wage growth, refusing to provide a nominal raise for our nation’s hardworking federal employees shows contempt for those who carry out public service,” said NARFE President Richard G. Thissen. While unwelcome, the announcement was not surprising, as the president’s budget for fiscal year 2019 had previously indicated his intent to freeze federal pay. However, while the president has the authority to determine federal pay adjustments, Congress
may step in and overrule the president’s decision through the appropriations process. NARFE has been urging Congress to do just that. In a turn of good news, the response has been positive. Reacting to the president’s pay freeze announcement, many members of Congress echoed NARFE’s position in favor of a pay raise for federal employees. Rep. Scott Taylor, R-VA, led a bipartisan letter to President Trump urging him to reconsider his proposed pay freeze, citing the vital work done to recruit and retain a strong federal workforce. Similarly, Rep. Jamie Raskin, D-MD, led a letter from 158 Democratic members of Congress to House and Senate leadership urging them to reject President Trump’s pay freeze (Continued on p. 9)
“justified by significant differences between the two classes.” NARFE’s amicus curiae brief to the Supreme Court in Dawson v. Steager argues that limiting the scope of the Court’s decision in Davis v. Michigan will risk unfair tax treatment for more than 2.6 million federal annuitants nationwide, causing serious hardship to those annuitants. — BY JOHN HATTON, DEPUTY DIRECTOR OF ADVOCACY
MYTH vs. REALITY Myth: Membership dues, general NARFE funds and money raised through notecard, calendar and holiday card solicitations fund NARFE-PAC and the association’s political work. Reality: Federal campaign laws prohibit dues money and other general funds (including funds from the solicitations mentioned above) from being directed toward political purposes. NARFE-PAC is a separate, segregated fund of the Association. All NARFE-PAC funds come from members’ voluntary contributions made explicitly for political purposes.
W W W. N A R F E . O R G
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Washington Watch
NARFE SUPPORTS FEDERAL SALARY COUNCIL RECOMMENDATIONS
I
n an August 24 letter to the Office of Personnel Management (OPM), NARFE President Richard G. Thissen advocated on behalf of the Federal Salary Council’s locality pay recommendations for January 2019 made to the President’s Pay Agent. Thissen expressed support of the council’s estimated locality rates for January 2019, the establishment or modification of pay localities and the level of comparability payments for January 2019. New locality pay areas would be created if the recommendations were implemented.
Thissen said in the letter, available on the NARFE website: “Locality pay is designed to reduce the gap between base General Schedule salaries and the average nonfederal salaries in a given locality, as estimated by the Bureau of Labor Statistics. Adequate locality pay rates are critical to ensuring federal pay is competitive enough to recruit and retain a wellqualified and high-performing workforce. The doctors and nurses who care for our veterans, the cybersecurity professionals tasked with protecting critical infrastructure and responding to emerging threats, NASA
engineers, NIH scientists, federal law enforcement and intelligence officers, prosecutors and judges— these individuals, and many more of those who comprise our federal workforce, require adequate compensation or we risk losing their talents.” NARFE supports the council’s recommendations to reduce the pay disparity between federal and nonfederal workers in various localities. This would not only improve recruitment and retention efforts, but would also attain a level of fairness that our civil servants deserve. — BY SAMUEL BARTELS, ADVOCACY ASSISTANT
GET READY FOR LEGCON19—NARFE’S LEGISLATIVE TRAINING CONFERENCE
L
EGcon19, NARFE’s Legislative Training Conference, will be held March 10-13, 2019, at the Hilton Alexandria Mark Center in Alexandria, Va. During the conference, members will participate in advocacy training and travel to Capitol Hill to walk the halls of Congress and meet with their legislators about issues affecting the earned pay and benefits of the federal community. Registration will be available online starting November 1. By attending LEGcon19, you will have the chance to join NARFE members from across the country to learn about NARFE’s legislative agenda, improve
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your advocacy skills and meet with members of Congress in the nation’s capital. Advocacy is NARFE’s core mission, and LEGcon19 is the opportunity for NARFE members to learn the most effective ways to reach their members of Congress, organize at the grassroots level and effect change. Attendees will hear from: • Policy experts about issues affecting federal employees and retirees •M embers of Congress on the lay of the land on Capitol Hill •C ongressional staff on how to make the most of your meetings with elected officials. The conference starts Sunday, March 10 and ends on March 13 with a closing reception on Capitol Hill after a day of meetings with Congress. NARFE will provide all necessary meeting materials and transportation to and from Capitol Hill.
The special NARFE room rate is $175, plus applicable taxes, at the Hilton Alexandria Mark Center in Alexandria, Va. You will need to make your own hotel accommodations in addition to registering for the conference. The hotel is five miles from Ronald Reagan National Airport and provides a shuttle to and from the airport. NARFE has negotiated a discounted self-parking rate of $15/day for NARFE members. Hotel reservations are available online or by calling 800-445-8667. Be sure to mention you are attending the “NARFE Legislative Conference.” Don’t miss this biennial opportunity to learn about NARFE’s legislative priorities, protect your earned pay and benefits and take your concerns directly to your legislators. Questions? Email mchecksfield@narfe.org.
— BY MOLLY CHECKSFIELD, GRASSROOTS PROGRAM MANAGER
NARFE Legislative Training Conference March 10-13, 2019
This is your chance to join NARFE members from across the country to: • Learn more about NARFE’s legislative agenda • Improve your advocacy skills • Attend meetings with members of Congress and advocate on your own behalf in the nation’s capital
The conference will be held at the Mark Center Hilton Hotel Alexandria, VA. Call 800-445-8667 to make reservations. Mention NARFE Legislative Conference.
LEGcon19 kicks off at noon on Sunday, March 10, and culminates Wednesday, March 13, with a day of advocating on Capitol Hill followed by a closing reception.
Registration opens November 1, 2018! www.NARFE.org/LEGcon19
1118-LTC-half-pg-ad.indd 1
(Continued from p. 7) and adopt a 1.9 percent pay raise for federal employees in 2019. Prior to the president’s announcement, the Senate made its intention clear, passing a bill to provide civilian federal employees an average raise of 1.9 percent in January 2019—a 1.4 percent increase across the board, with an average increase to locality pay of 0.5 percent. At press time, the House and Senate were in conference to resolve differences between the underlying House and Senate bill that would include (or not) the 1.9 percent pay increase. With strong signs of support from members in both chambers, the prospects for inclusion of the pay raise looked good, but not certain. Of course, the president could veto any bill including a pay increase. But, at press time, such a scenario seemed unlikely.
Hotel rate: $175 per night (plus tax) Discount parking available 10/2/18 10:56 AM
The pay raise was included in a package of four appropriations bills bundled into one “minibus” which passed the Senate by a vote of 92-6. Even if the president does not support a pay raise, he would need to veto a much larger legislative package to stop Congress from enacting it. As the debate ramped up, thousands of NARFE members weighed in with their members of Congress, asking them to ensure that federal employees are valued and treated fairly, and that the federal government has the ability to attract and retain highly qualified workers to take on challenging civil service roles on behalf of the American public. That grassroots advocacy has been crucial for improving the chances that federal workers see a modest pay bump in 2019.
Legislative Resources • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE Advocacy Department staff, distributed via email and available by phone (tollfree) at 800-456-8410, option 4 and online at www.narfe.org. • Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.
— BY JOHN HATTON, DEPUTY DIRECTOR OF ADVOCACY W W W. N A R F E . O R G
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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
WHAT BILL WOULD DO
H.R. 756: Postal Service Reform Act of 2017 / Rep. Jason Chaffetz, R-UT Cosponsors: 11 (D), 12 (R)
Requires postal retirees to enroll in Medicare in order to continue receiving their current federal health insurance coverage. Enrollment would be automatic.
NARFE’s Position:
Approved by the House Committee on Oversight and Government Reform; pending in two other committees NARFE, November 2017 Pending in three House committees; approved to bypass committee process in Senate
H.R. 6076 / S. 2629: Postal Service Reform Act of 2018. Rep. Mark Meadows, R-NC Cosponsors 5 (D), 2 (R) Sen. Tom Carper, D-DE Cosponsors 3 (R), 2 (D)
POSTAL REFORM
LATEST ACTION(S)
NARFE, September 2018
H.Res. 15: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. Sam Graves, R-MO Cosponsors: 185 (D), 72 (R)
Expresses the sense of the House that the U.S. Postal Service should take all appropriate mesaures to ensure the continuation of six-day delivery.
Referred to the House Committee on Oversight and Government Reform
H.Res. 31: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. David McKinley, R-WV Cosponsors: 179 (D), 51 (R)
Expresses the sense of the House that the U.S. Postal Service should take all measures to restore service standards in effect on July 1, 2012.
Referred to the House Committee on Oversight and Government Reform
H.Res. 28: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. Susan Davis, D-CA Cosponsors: 186 (D), 61 (R)
Expresses the sense of the House that the U.S. Postal Service should take all measures to ensure the continuation of door-to-door delivery for all businesses and residential customers.
Referred to the House Committee on Oversight and Government Reform
H.Res. 993: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. Steven Lynch, D-MA Cosponsors: 154 (D), 36 (R)
Expresses the sense of the House that Congress should take all appropriate measures to ensure that the U.S. Postal Service remains an independent establishment of the Federal Government and is not subject to privatization.
Referred to the House Committee on Oversight and Government Reform
Support
Oppose
No position
NARFE, October 2018
W W W. N A R F E . O R G
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Washington Watch
EDITOR’S NOTE: These bills are all listed online at www.narfe.org/legislation/votervoice.cfm.
ISSUE
BILL NUMBER / NAME / SPONSOR
WHAT BILL WOULD DO
LATEST ACTION(S)
H.R. 4775 / S. 2295: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerald E. Connolly, D-VA Cosponsors (H.R. 4775): 52 (D), 1 (R) Sen. Brian Schatz, D-HI Cosponsors (S. 2295): 10 (D), 0 (R)
Provides for a 3 percent pay raise for federal employees in 2019.
Referred to the House Committee on Oversight and Government Reform (H.R. 4775) and the Senate Committee on Homeland Security and Governmental Affairs
H.R. 3269: Federal Employee Pension Fairness Act of 2017 / Rep. Anthony G. Brown, D-MD
Repeals laws passed in 2012 and 2013 that increased the Federal Employees Retirement System (FERS) contributions for newly hired federal employees.
Referred to the House Committees on Oversight and Government Reform and Foreign Affairs NARFE, October 2017
Provides federal employees with 6 weeks of paid leave in connection with the birth or adoption of a child.
Referred to the House Committees on Oversight and Government Reform and Administration and the Senate Committee on Homeland Security and Governmental affairs
This legislation would allow federal employees who started their careers in temporary positions, before transitioning into permanent roles, to “buy back” such time and include it in their retirement annuity calculations.
Referred to the House Committee on Oversight and Government Reform
Cosponsors: 29 (D), 1 (R)
H.R. 1022/S. 362: Federal Employees Paid Parental FEDERAL Leave Act of 2017 / Rep. COMPENSATION Carolyn Maloney, D-NY Cosponsors: 81 (D), 1 (R) Sen. Brian Schatz, D-HI Cosponsors: 3 (D), 0 (R) H.R. 5389: Federal Retirement Fairness Act / Rep. Derek Kilmer, D-WA Cosponsors: 9 (D) 4 (R)
H.R. 6275: The Federal Employees Paid Parental Leave Act of 2018/Rep. Barbara Comstock, R-VA
NARFE, July 2018
Provides federal employees NARFE, October 2018 with 12 weeks of paid leave in connection with the birth or adoption of a child.
Cosponsors: 5 (D), 5 (R)
DC STATEHOOD
H.R. 1291 / S. 1278: Washington, DC Admission Act / Del. Eleanor Holmes Norton, D-DC Cosponsors (H.R. 1291): 166 (D), 0 (R) Sen. Thomas Carper, D-DE Cosponsors (S. 1278): 28 (D), 1 (I)
Sets forth procedures that would allow the District of Columbia to become a state known as the State of Washington, DC.
Referred to Senate Committee on Homeland Security and Governmental Affairs NARFE’s Position:
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Referred to the House Committee on Oversight and Government Reform, and Committee on Rules
Support
Oppose
No position
ISSUE
BILL NUMBER / NAME / SPONSOR
CAMPAIGN FINANCE
LATEST ACTION(S)
H.R. 1251: CPI-E Act of 2017/ Rep. John Garamendi, D-CA Cosponsors: 51 (D), 2 (R)
Requires Social Security and many federal retirement programs to use the Consumer Price Index for the elderly (CPI-E) to calculate cost-of-living adjustments (COLAs) to retirement benefits.
Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Government Reform, and Armed Services NARFE, May 2017
H.R. 1205 / S. 915: Social Security Fairness Act of 2017 / Rep. Rodney Davis, R-IL Cosponsors (H.R. 1205): 130 (D), 58 (R) Sen. Sherrod Brown, D-OH Cosponsors (S. 915): 20 (D), 4 (R), 1 (I)
Repeals both the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).
Referred to the House Committee on Ways and Means (H.R. 1205) Referred to the Senate Committee on Finance (S. 915) NARFE, May 2017
COLA
GPO/WEP
WHAT BILL WOULD DO
H.R. 20: The Government Reforms campaign finance By the People Act of 2017 / laws to put small donors Rep. John Sarbanes, D-MD on par with wealthier donors. Provides a tax credit or contributions Cosponsors: 161 (D), 1 (R) and government matching contributions.
Referred to three House committees
H.R. 5765: The Reducing the Effects of the Cyberattack on OPM Victims Emergency Response (RECOVER) Act / Del. Eleanor Holmes Norton, D-DC
Referred to the House Committee on Oversight and Government Reform
This legislation would extend the availability of identity protection for individuals whose personal information was compromised during recent data breaches at the Office of Personnel Management (OPM).
NARFE, August 2018
Cosponsors: 4 (D) 0 (R) DATA BREACH
NARFE’s Position:
Support
Oppose
No position W W W. N A R F E . O R G
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13
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Questions & Answers
The following Questions & Answers were compiled by NARFE’s Federal Benefits Institute staff. NARFE does not provide legal, financial planning or tax advice or assistance.
EMPLOYEES 2018 OPEN SEASON DATES FOR FEHB AND FEDVIP
Q
What are the dates for employee/annuitant Open Season for the Federal Employee Health Benefits (FEHB) program and Federal Employees Dental and Vision Insurance Program (FEDVIP)? When is the employee Open Season for Health Care Flexible Spending Account’s (HCFSA) and Dependent Care Flexible Savings Accounts (DCFSA)?
A
Each year, Open Season runs from the Monday of the second full workweek in November through the second full workweek of December. This year’s Open Season, for both federal employees and annuitants, begins Monday, November 12, and ends on Monday, December 10. Look for FEHB premiums information and more in the Open Season section on p. 38. Stay tuned this month and next for more details on both employees and annuitants regarding this year’s Open Season.
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TRICARE AND FEHB
Q
I don’t currently have Federal Employees Health Benefits (FEHB) program coverage because I have TRICARE coverage from my spouse’s military retirement. I’m thinking about applying for a voluntary immediate retirement from federal service in the summer of 2019. Will I have the option to sign up for FEHB later in retirement if I wanted to?
A
If you have had TRICARE coverage for the last 5 years of your federal career, leading up
to your date of separation for an immediate retirement, you would be allowed to keep FEHB coverage in retirement as long as you are enrolled in FEHB on the date of your separation. You can take advantage of your opportunity to enroll into FEHB during this year’s Open Season since you expect to separate for retirement in the summer of 2019. Once you’re retired, you have the option to immediately and indefinitely suspend your FEHB coverage for TRICARE. This is a good back-up plan that won’t have to cost you much in retirement unless you need it. If you ever reach a point in your life where TRICARE coverage isn’t meeting your needs, you could use any Open Season as an annuitant to unsuspend any available FEHB plan. Information about Early Optional Retirement under the Federal Employees Retirement System (FERS) is
available at www.opm.gov/retire/ pre/fers/earlyout.asp.
EARLY RETIREMENT
Q A
Am I eligible for Voluntary Early Retirement? Where can I get more information about it?
If your agency undergoes a major reorganization, reduction in force, or transfer of function, and a significant percentage of the employees will be separated, or will be reduced in pay, the head of your agency can ask the Office of Personnel Management (OPM) to permit early optional retirement for eligible employees. If your agency gets approval to permit early optional retirements, eligible employees will be notified of the opportunity to retire voluntarily. Information about Early Optional Retirement under Civil Service Retirement System (CSRS) is available at www.opm. gov/retire/pre/csrs/earlyout.asp. Information about Early Optional Retirement under the Federal Employees Retirement System (FERS) is available at www.opm. gov/retire/pre/fers/earlyout.asp .
FERS ANNUITY SUPPLEMENTS AND COLA
Q
I’m 51 years old with 22 years of creditable service under Federal Employees Retirement System (FERS). If I’m offered Voluntary Early Retirement by my agency,
when should I expect to begin receiving the FERS Annuity Supplement, and when should I expect to receive my first cost-ofliving adjustment (COLA)?
A
Since you aren’t a special group employee (i.e. law enforcement, firefighter or air traffic controller) with a mandatory retirement age, although you meet the age and service criteria to qualify for an annuity payable immediately without any reduction for early age under the Voluntary Early Retirement Authority (VERA), you would have to wait until you reach your FERS minimum retirement age (MRA) before the FERS Annuity Supplement would commence. You would also have to wait until December 1 following your 62nd birthday before you could expect to receive your first COLA, payable on January 1 for the month of December. This means any FERS retirement income received from OPM prior to your birthday will be a fixed amount with no protection against inflation until after you have passed your 62nd birthday.
REDUCTIONS TO ANNUITY
Q A
What sort of reductions for early age might be applied to one’s annuity payment from OPM?
A permanent reduction for early age could apply to someone under FERS who attempts to draw an annuity
at his/her minimum retirement age (MRA) if they have at least 10 years of creditable service, but less than the 30 required to avoid this reduction. The reduction is 1/12 of 5 percent for each month that he/she is younger than 62. The same reduction for early age would apply to someone under FERS who attempts to draw an annuity at age 60 or 61 with at least 10 years of creditable service, but less than the 20 required to avoid this reduction. This reduction for early age does not apply to disability annuitants or special group employees who qualify for special group retirements. It also does not apply to FERS employees who qualify for retirement under VERA or a Discontinued Service Retirement (DSR) unless he/she has a Civil Service Retirement System (CSRS) component in the annuity. Annuitants with CSRS service take a permanent reduction of 1/12 of 2 percent for each month that he/she is younger than 55 if they separate under VERA or DSR. The reduction for early age is only applied to the CSRS component of the annuity if the individual is a FERS Transferee.
WAIVING MILITARY RETIREMENT PAY
Q
I paid my military deposit for my 20+ years of active duty several years ago because it will benefit me more once I retire from federal service next year. When and how do I waive my military retired pay? W W W. N A R F E . O R G
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Questions & Answers
A
If you want to waive your military retired pay to receive credit for military service in the computation of your benefit, you should write the Retired Pay Operations Center at least 60 days before your planned retirement. Send your waiver to: Defense Finance and Accounting Service U.S. Military Retirement Pay P.O. Box 7130 London, KY 40742-7130 You can also fax your request to 1-888-469-6559. Suggested wording for your request is as follows: “I (full name and military serial number) hereby waive my military retired pay for Civil Service Retirement/
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Federal Employees Retirement System purposes effective (the day before your annuity begins). I hereby authorize the U.S. Office of Personnel Management to withhold from my CSRS or FERS annuity any amount of military retired pay granted beyond the effective date of this waiver due to any delay in receiving or processing this request.”
RETIREES FEHB COVERAGE
Q
I retired a couple years ago and my Federal Employee Health
Benefits (FEHB) coverage was automatically transferred to OPM from my agency. Although I’m married, I currently have a selfonly plan because my wife is still working at a company where she has free health insurance. I will be adding her to my FEHB plan when she leaves her company and loses her company health insurance in a couple of years. If I die before having a chance to add her to my FEHB plan, will she be allowed to enroll into FEHB later?
A
Unfortunately, even though she might qualify for a monthly survivor benefit payment (based on an election that you
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Questions & Answers
hopefully made previously), if she isn’t under your FEHB plan on the date of your death, she would not be allowed to sign up for FEHB coverage later. She must be under your FEHB plan on the date of your death AND she must be potentially eligible for a spousal survivor benefit payment to qualify to keep the FEHB coverage as a widow. If your spouse previously waived her right to a spousal survivor benefit, you can still add her to your plan and she can remain under your plan while you remain alive. But if no spousal survivor benefit is potentially payable to her upon your death, then she would lose the FEHB coverage on that same date. You don’t have to wait until she loses her company health insurance to add her to your FEHB plan. You could use the opportunity this open season to add your spouse to your FEHB plan sooner than later.
RECENT SEPARATION FOR RETIREMENT
Q
I just separated for retirement. How will I know when OPM has my retirement application package from my agency?
A
When OPM receives your retirement application, they will notify you and will provide a civil service claim identification number (a seven-digit number preceded by “CSA”). You will want to use that identification number whenever you contact OPM about your annuity. In a separate letter from OPM, you will also receive information on 20
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how you can access your account using their Retirement Services Online.
SOCIAL SECURITY CALCULATIONS
Q A
How are my Social Security retirement benefits calculated?
Social Security benefits are based on earnings averaged over most of a worker’s lifetime. Your actual earnings are first adjusted or “indexed” to account for changes in average wages since the year the earnings were received. Then the Social Security Administration (SSA) calculates your average monthly indexed earnings during the 35 years in which you earned the most. The SSA applies a formula to these earnings and arrives at your basic benefit, or primary insurance amount (PIA). This is the amount you would receive at your full retirement age. As you can see from the above, the benefit computation is complex and there are no simple tables that we can give you that or will tell you how much you will receive. However, there are several ways you can find out how your Social Security retirement benefit is figured: 1. Request or review your Social Security Statement. You can make your request over the Internet and review a detailed report of your lifetime earnings and an estimate of Social Security retirement, disability and dependent benefits: www. ssa.gov/statement. 2. Compute your own Social
Security benefit estimate using one of several online calculators: www.ssa.gov/planners/ calculators/. 3. If you are receiving a government pension based on work where you did not pay Social Security taxes, be sure to use the calculator that takes into account the Windfall Elimination Provision (WEP): www.ssa.gov/ planners/retire/anyPiaWepjs04. html 4. “How Your Retirement Benefit Is Figured” is a publication that walks you through the formula for computing your retirement benefit: www.ssa.gov/ pubs/10070.html. 5. See examples of how Social Security benefits are computed at www.ssa.gov/OACT/ProgData/ retirebenefit1.html.
TSP WITHDRAWAL TIMEFRAME
Q A
How long does it take to receive a withdrawal from my Thrift Savings Plan (TSP)?
Disbursements are processed daily. Generally, you should allow several weeks from the time you submit your completed withdrawal request and the time that payment is sent. The TSP will notify you in writing when your payment has been disbursed. You can go to www.tsp.gov/tsp/login. html and click onMy Account under “Withdrawals” or call the ThriftLine at 1-877-9683778 and choose option 3 to speak with a Participant Service Representative to find out the status of your request.
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Questions & Answers
NARFE at Your Service Your withdrawal could take longer if your agency delays reporting your separation from federal service, if you have an outstanding TSP loan, if there is some type of hold on the account such as court order hold, if you are trying to do a transfer or other split withdrawal, or if you submit forms that are not completed properly. Note that withdrawal processing times vary and can take less time than described above. If you want your withdrawal to take place in the
22
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next calendar year, wait until then to submit your form. You cannot submit a withdrawal form and specify some future time for the disbursement to take place. To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.
At NARFE headquarters, experts are available to answer questions and to assist in helping with a variety of benefit matters. Call NARFE at:
800-456-8410, Option 2
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TIPS FOR SELECTING A HEALTH CARE PLAN By Tammy Flanagan
Did you ever stop and think how fortunate you and your family are to have access to world-class health plans available through the Federal Employees Health Benefits (FEHB) program? In some private-sector benefit programs, there are often only two choices: take it or leave it. The Office of Personnel Management (OPM) administers the FEHB program, which provides health benefits for more than 8.2 million federal employees, retirees, tribal employees and their family members. As a whole, FEHB enrollees have 245 health plan choices,1 although no individual employee or retiree has this many choices to choose from. Around a dozen plan choices are available to all federal employees, with other options available to specific groups or regional areas.
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For most people, this can be too many choices. Some of you have had the same FEHB plan since the day you were hired into federal civilian employment. In addition, you may have carried that same health plan into retirement and simply added Medicare Part A (hospital insurance) and Medicare Part B (outpatient coverage) to your health insurance coverage when you turned 65. Some enrollees may be dually covered by FEHB and TRICARE through you or your spouse’s military service or under a spouse’s employer plan outside of FEHB. If you switched plans, it may have been from self-only to self-and-family or the self-plus-one option.
...making the right choice could cut your health insurance costs and provide significant savings for you and your family’s future healthcare needs. Why so few changes? Changing plans may be confusing, scary and downright complex. Despite this, making the right choice could cut your health insurance costs and provide significant savings for you and your family’s future healthcare needs. Even if you or your needs for healthcare haven’t changed, the health plan itself may have changed. If nothing else, please review your current health plan premium for 2019 as well as any plan changes to your existing plan for the coming year. This information will be sent to you by mail, and you can explore your plan’s website and plan brochure using the links provided at www.opm.gov/healthcare-insurance/ healthcare/plan-information/plans. OPM’s website will provide access to the FEHB plans available in your area. You will also see related links to tools such as OPM’s Plan Comparison tool and the Consumers’ Checkbook Guide to Health Plans for Federal Employees and Retirees that will make it easier to compare plans and narrow your choices. Too much analysis, however, can be overwhelming. With so many choices, often you are satisfied with your current FEHB plan without considering that there may be other plans that could provide the same or even superior coverage for less cost. It’s like an old friend, where you may feel a sense of disloyalty if you switch to a new plan. In reality, 26
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health insurance is a business, and there are metrics and algorithms that are used to assess the performance of the plans included in the 2 FEHB program. Health plans are required to provide data to OPM in accordance with strict federal guidelines. The FEHB plans want your business, but keep in mind that it is a business relationship. As such, it is important for you, the federal client, to gather as much data as you can to choose the best plan for you and your family. Here are some tips to help you navigate the basic decisions and narrow your options:
TIP #1: COST OF THE PLAN (premiums, deductibles, coinsurance, copayments, medical fund options)
Just like buying a car, you have to consider the base-model price when comparing different types—before adding any bells and whistles. The same base price can be used for comparing health plans, whether or not you and your family have chronic medical conditions or are currently enjoying good health. There are certain costs and benefits that you need to know regardless of which FEHB plan choice you make. Think of this as the least amount you will spend next year without ever stepping foot into a doctor’s office.
There are certain costs and benefits that you need to know regardless of which FEHB plan choice you make. The range of FEHB premiums can vary from as little as around $100/month to more than $500/month for self-only coverage. You can more than double that cost for self-plus-one or self-and-family options. Look for words like basic, value, CDHP (Consumer Driven Health Plans) or HDHP (High-Deductible Health Plans) for the lowest-priced base-model FEHB plans. CDHP plans provide you with freedom in spending health care dollars the way you want. The typical plan has common features: member responsibility for certain up-front medical costs, a medical (or sometimes called a health fund) account that you may use to pay these up-front costs and catastrophic coverage 3 with a high deductible. HDHP plans are a type of CDHP. Fee-for-service (FFS) plans include the government-wide Service Benefit Plan, administered by the Blue Cross Blue Shield
(BC/BS) Association. As of 2014, 2,671,817 policy holders were covered under one of the 4 two available BC/BS benefit options. FFS plans have Preferred Provider Organization (PPO) arrangements with large nationwide networks of providers, and they reimburse you or your provider for the cost of covered services. You may choose your own physician, hospital and other providers. If you receive services from a PPO provider, you usually have lower out-ofpocket expenses (i.e., a smaller copayment and/ or a reduced or waived deductible). Another important comparison to make when considering changing your FEHB coverage is the amount of your deductible or the cost of care before your insurance coverage begins. Most FEHB plans cover 100 percent of preventive care along with routine screenings and immunizations as long 5 as you use plan network providers. If you need to see a doctor for a specific illness, is there a flat copayment charge such as $20 or some percentage of the fee such as 15 percent coinsurance of the plan allowance? Check your plan website for links to your plan brochure, plan summary and online information that will answer these questions for you, or call the toll-free number where you may talk to someone about these comparison tips.
TIP #2: THE BIG COSTS (inpatient care, prescription coverage, catastrophic caps)
This is the main reason for health insurance. What if you get sick? Are you filling expensive prescription drugs? If you need expensive healthcare, a smart option may be to enroll in a high option or standard option plan (these typically have lower deductibles, and require smaller copayments and coinsurance when using in-network providers than the basic or low option/ value option plan choice). Other alternatives could be a Health Maintenance Organization (HMO) plan or a HDHP. HMO plans provide or arrange for comprehensive health care services on a prepaid basis through designated plan physicians, hospitals and other providers in particular locations. Each HMO sets a geographic area for which health care services will be available. Some plans also accept enrollments from employees who work in the area even though they live elsewhere. Generally, you must choose a primary care physician and have all care coordinated through that physician.6 An HMO may be a good choice because of the lower out-of-pocket expense for medically necessary care that often has $0 deductible and a flat dollar amount copayment rather than a percentage fee coinsurance for out of pocket expenses. HMOs
will often provide coordination of medical care within the network of plan providers, which can be helpful when treating serious or multiple chronic health problems. An HDHP plan, by law, has comprehensive out-of-pocket plan limits that cannot exceed $6,750 for self-only coverage or $13,500 for family or self-plus-one coverage for 2019.7 Although all FEHB plans have a catastrophic cap on out-of-pocket expenses, you may pay for this out-of-pocket expense with tax-free dollars invested in your HSA.
TIP #3: EXTRAS: WELLNESS INCENTIVES
Sometimes the “perks� of a health plan can make a difference, especially if you are in generally good health. Take advantage of offers from your health plan to stay that way. Check your plan brochure or plan website to see if your plan provides monetary incentives for participating in health-risk assessments, weight-loss programs, gym memberships and other wellness incentives. You may earn hundreds of dollars in some FEHB plans for participating in wellness activities. This can lower your overall cost of insurance as well as help you maintain a healthy lifestyle. Undergoing a biometric screening, participating in a risk assessment and having a routine physical exam are examples of ways your health plan may pay you to stay healthy.
TIP #4: PLAN NETWORK / YOUR DOCTORS
If you need to see a specific specialist or if you want to keep your favorite doctor, you should check to be sure that your providers are included in your health plan network. Most providers participate in more than one plan network, so this may not be a problem if you change health plans. To find a list of participating providers, visit the plan website or call the toll-free number of the health
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plan that you are considering. If you belong to an HMO plan, this may be more critical and also have a more restrictive choice of providers. Switching from a Preferred Provider Organization (PPO) to an HMO may require that you select new doctors, and you may find that all of your healthcare may take place under one roof or with one specific plan network. If you go out of an HMO network, you may not have coverage, unless you maintain a secondary coverage such as Medicare, TRICARE or a spouse’s health plan through their employer or retirement coverage. In FFS FEHB plans, you will be permitted to use out-of-network providers, in most cases, but outof-pocket expenses for deductibles, copayments, coinsurance and catastrophic caps may be higher. The lines between HMO, FFS and PPOs have become so blurred that you may find some FFS plans may not cover out-of-network benefits and some HMO style plans will offer open access coverage for out-of-network providers. Although this adds to the complexity of your decision making, it is an important point.
If you need to see a specific specialist or if you want to keep your favorite doctor, you should check to be sure that your providers are included in your health plan network. 28
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TIP #5: DO YOU NEED DENTAL OR VISION COVERAGE?
Your FEHB plan may offer basic preventative dental and vision coverage for no extra charge. Once you have evaluated the care you and your family may need next year, consider the benefits included in your FEHB plan and compare this with additional benefits available through the Federal Employees Dental and Vision Insurance Program (FEDVIP). Stand-alone dental and vision benefits have been available since 2004, and some FEHB plans have offered their own dental and vision plans outside of FEDVIP. Although there is no government contribution to the FEDVIP premiums, these plans can provide coverage for a wide range of dental and vision care needs to help you save money and maintain your oral health and preserve your eyesight. Employees pay premiums on a pretax basis. Eligible individuals can enroll in a plan for self-only, self-plus-one, or self-andfamily coverage. Eligible family members include your spouse and unmarried dependent children under age 22. This includes legally adopted children and recognized natural children who meet certain dependency requirements. This also includes stepchildren and foster children who live with you in a regular parent-child relationship. Under certain circumstances, you may also continue coverage for a disabled child 22 years of age or older who is incapable of self-support. As employees, you must be eligible for the FEHB Program in order to be eligible to enroll in FEDVIP even if you are not actually enrolled. Annuitants do not have to be eligible
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Your FEHB plan may offer basic preventative dental and vision coverage for no extra charge. or enrolled in the FEHB Program. For enrollment/premium questions regarding dental and vision insurance, please contact BENEFEDS at 1-877-888-3337 and to enroll in FEDVIP, visit www.BENEFEDS.com. Effective January 1, 2019, retired members of the uniformed services and their families, and family members of active duty service men and women, will be eligible for enrollment in FEDVIP. The current U.S. Department of Defense's TRICARE Retiree Dental Program (TRDP) will sunset on December 31, 2018. For more information about this new opportunity to join FEDVIP, please visit www.tricare.benefeds.com.
BONUS TIP FOR DUAL FEDERAL COUPLES
If you and your spouse are both eligible for individual enrollment in FEHB and you don’t have any dependent children, then you may consider two self-only enrollments rather than a self-plus-one type of enrollment. This may reduce the overall premiums and provide each of you with a plan best suited to your individual needs. One of you may qualify for Medicare earlier and choose a plan that will coordinate better with Medicare while the other spouse may be younger and wish to take advantage of a plan offering different benefits better suited to their healthcare needs. On the other hand, if one spouse is working while the other is retired, the working spouse may wish to carry the FEHB coverage as a self-plus-one enrollment type. This will allow the premiums to continue to be deducted on a pretax basis and also allow the retired spouse to delay Medicare Part B enrollment without incurring a late-enrollment penalty while covered by a health plan based on “current” employment.
TIP FOR TRICARE ENROLLEES
TRICARE is health insurance for uniformed service members, retirees and their families. Some TRICARE enrollees also carry FEHB as their primary insurance with TRICARE paying second on health claims. Federal employees who turn age 65 may delay Medicare Part B enrollment without penalty 30
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for late enrollment and postpone enrollment in TRICARE for Life by using FEHB coverage until retirement. Once retired, the FEHB coverage may be suspended (rather than canceled) and the retiree may enroll in Medicare Part B during a special eight-month enrollment period that follows retirement.8 Once enrolled in Medicare A & B, you may re-enroll in TRICARE for Life (TFL is Medicare “wraparound” coverage for TRICARE-eligible beneficiaries who have Medicare Part A and B). In order to suspend your FEHB coverage in retirement, you will need OPM Form 2809 (see Section E of the form for information regarding suspension of FEHB for TRICARE , Medicare Advantage Plans, and other allowances). The form is available at www. opm.gov/forms or by calling OPM’s Retirement Information line at 1-888-767-6738. References 1 OPM 2017 Annual Performance Report, https:// www.opm.gov/about-us/budget-performance/ performance/2017-annual-performance-report.pdf 2 OPM 2017 Healthcare Insurance Carriers, https:// www.opm.gov/healthcare-insurance/healthcare/ carriers/2017/2017-12a1.pdf 3 OPM Healthcare Reference Materials: Health Plans, https://www.opm.gov/healthcare-insurance/ healthcare/reference-materials/reference/health-plans/ 4 Congressional Research Service: FEHB Program Overview, https://www.everycrsreport.com/ files/20160203_R43922_79db80060fb82fa3e6335ee 92c630794a3360202.pdf 5 Kaiser Family Foundation – Preventative Services Covered by Private Health Plans under the Affordable Care Act, https:// www.kff.org/health-reform/fact-sheet/ preventive-services-covered-by-private-health-plans/ 6 OPM Healthcare Reference Materials: Types of Plans, https://www.opm.gov/healthcare-insurance/ healthcare/reference-materials/reference/health-plans/ 7 IRS Revenue Procedure 2018-30, https://www.irs.gov/ pub/irs-drop/rp-18-30.pdf 8 Medicare: Part A & B sign-up periods—when you first get Medicare, https://www.medicare.gov/sign-up-changeplans/get-parts-a-and-b/when-sign-up-parts-a-and-b/ when-sign-up-parts-a-and-b.html 9 Ebeling, Ashlea. “IRS Announces 2019 Health Savings Account Limits” Forbes 10 May, 2018, https:// www.forbes.com/sites/ashleaebeling/2018/05/10/ irs-announces-2019-health-savings-accountlimits/#440054ff564e 10 Miller, Stephen. “2019 HSA Limits Rise, IRS Says” SHRM.org 11 May, 2018, https://www.shrm.org/ resourcesandtools/hr-topics/benefits/pages/2019hsa-contribution-limits-rise-irs-says.aspx
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When we think about retirement, our thoughts naturally gravitate towards happy times and the activities we’ll get to do when we have the time. That’s fantastic—it’s what retirees and soon-to-be retirees have worked so hard for. But it’s also important to think about what happens if things don’t go according to plan. For instance, how would your spouse be impacted financially if you died early in retirement? Would he or she be able to continue the lifestyle you two have become accustomed to?
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The Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) are integral to maintaining a federal retiree’s financial integrity throughout a multi-decade retirement. While both systems are designed to provide income to a surviving spouse as well, your spouse may find the smaller survivor annuity is inadequate to maintaining his or her standard of living.
“ Regardless of which retirement system you are in, if you are married when you retire, you are required to provide a full survivor annuity to your current spouse.”
When you are completing your application for retirement, one of the most important decisions you and your spouse will need to make is what survivor annuity option to elect. Regardless of which retirement system you are in, if you are married when you retire, you are required to provide a full survivor annuity to your current spouse (unless you were previously married and there’s a court order requiring you to provide a survivor annuity to your former spouse). With your spouse’s written consent, however, you’ll also have the option of electing a partial survivor annuity or no survivor annuity at all. The survivor annuity options differ somewhat between the two retirement systems. If you’re a CSRS participant, the full survivor annuity provides your spouse an annuity equal to 55 percent of your unreduced basic annuity. The CSRS partial survivor annuity may be for any amount less than the full survivor annuity and is based on 55 percent of a portion of the annuity base you choose.
“ The survivor annuity options differ somewhat between the two retirement systems.” For example, if your unreduced basic annuity is $40,000, the full survivor annuity payable to your surviving spouse is $22,000 (55 percent of $40,000) per year for life. Alternatively, if your spouse consents to a partial survivor annuity, you 34
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could elect a survivor annuity for any amount less than 55 percent of your $40,000 base annuity. For instance, if you elected 55 percent of $20,000, your spouse’s survivor annuity would be $11,000 per year for life. Under FERS, the full survivor annuity is 50 percent of the unreduced basic annuity and the partial survivor annuity is fixed at 25 percent of the unreduced basic annuity. Assuming the same unreduced basic annuity of $40,000, the FERS full survivor annuity would be $20,000, while the partial survivor annuity would be $10,000. As they say, there’s no free lunch, and the survivor annuity is no exception. The drawback to providing a survivor annuity is that your own annuity will be reduced to pay for it. The cost for the full survivor annuity under CSRS is about 10 percent of your unreduced annuity base. More specifically, the formula to determine the cost of the survivor annuity is 2.5 percent of the first $3,600 of your annuity base, plus 10 percent of any amount over $3,600. This formula applies to both the full and partial survivor annuity. Continuing with our $40,000 unreduced basic annuity, the cost of the full survivor annuity under CSRS is $3,730 ((0.025 x $3,600) + (.10 x $36,400)) and the cost for the $11,000 partial survivor annuity is $1,730 ((0.025 x $3,600) + (.10 x $16,400)). The net CSRS annuity payable during the CSRS participants lifetime would be $36,270 for the full survivor annuity option and $38,270 for the partial survivor annuity. The FERS survivor annuities cost a little more than a comparable CSRS survivor annuity. For example, even though the FERS full survivor annuity is 50 percent versus 55 percent, it costs a full 10 percent of the unreduced basic annuity. The partial survivor annuity costs 5 percent of the unreduced basic annuity.
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“ Besides providing a financial lifeline to your surviving spouse, there’s another important role the survivor annuity plays: health insurance benefits.”
Under both CSRS and FERS, the reduction to provide a survivor annuity is permanent, but if your spouse dies before you, your annuity will be restored to what it would have been had you never elected a survivor annuity. However, you will not receive a refund for any reduction you incurred while your spouse was living. Besides providing a financial lifeline to your surviving spouse, there’s another important role the survivor annuity plays: health insurance benefits. Once retired, and after your death, your spouse is only allowed to continue Federal Employees Health Benefits (FEHB) if he or she was covered by FEHB when you died and is entitled to a survivor annuity.
“ As a spouse, you’re entitled to the higher of your own Social Security retirement benefit or a spousal benefit, which is equal to one half of your spouse’s full retirement benefit.
If you elected a survivor annuity for your spouse, but a former spouse is entitled to the entire survivor annuity, your current spouse is still 36
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eligible for coverage as long as he or she pays the required premiums. In addition to health insurance benefits, a surviving spouse will only be able to enroll in the Federal Long Term Care Insurance Program (FLTCIP) if he or she is receiving a survivor’s annuity. Note, however, spouses who enrolled in FLTCIP prior to the death of the federal employee or retiree may continue their coverage for as long as they pay the premiums. While the surviving spouse receiving a full CSRS survivor annuity will have to deal with nearly a 40 percent loss in annuity income, the surviving spouse of a FERS participant could lose over 50 percent when taking Social Security into consideration. In a typical scenario where both spouses are covered by Social Security, or at least didn’t work in a job not covered by Social Security, one third to one half of the total household Social Security income will be lost when one spouse dies. This is because the surviving spouse loses the smaller of the two Social Security benefits. As a spouse, you’re entitled to the higher of your own Social Security retirement benefit or a spousal benefit, which is equal to one half of your spouse’s full retirement benefit. You may receive the spousal benefit even if you have never worked under Social Security, or earned enough credits, to qualify for your own retirement benefit.
For example, let’s say your Social Security benefit at Full Retirement Age (FRA) is $2,000 per month and your spouse’s Social Security benefit is $750 per month. In this case, your spouse would receive $1,000 (one half of your benefit) if he or she claimed at FRA. If either of you passed away, the surviving spouse would continue the $2,000 per month benefit, but lose the $1,000 per month benefit—a loss of about 33 percent. Alternatively, let’s assume your spouse’s own benefit is also $2,000 per month. In this case, if either of you died, the surviving spouse continues his or her own benefit and loses the other—a loss of 50 percent. This is why it’s so important to consider a couple’s joint life expectancy when deciding on a Social Security claiming strategy. If you’re the primary worker, with the larger of the two Social Security benefits, and you claim prior to your FRA, not only will you receive a reduced benefit, but your spouse’s widow(er) benefit will be as well. This is only the very tip of the iceberg to illustrate the potential loss of Social Security benefits when a spouse dies. For a more detailed explanation of Social Security benefits, claiming strategies and the effect federal employment may have on your Social Security benefits, check out James Marshall’s articles in the August and September 2018 issues of NARFE Magazine.
“ Run the numbers assuming various life expectancies to determine if your investment assets are enough...” Of course, FERS is designed as a three-part retirement system, with the Thrift Savings Plan (TSP) as the third part, but considering the loss of income, there may not be enough in the TSP to handle the required increase in withdrawals for your spouse’s lifetime, especially if you were unfortunate enough to die at an early age. Run the numbers assuming various life expectancies to determine if your investment assets are enough to support the lifestyle you and your spouse are accustomed to for the remainder of his or her life. If not, you may want to consider life insurance to fill the void. As a federal employee, you have access to the Federal Employees’ Group Life Insurance Program (FEGLI), which may be continued into retirement if you’re entitled to retire on an immediate annuity, have been insured for the five years of service
immediately before the date your annuity starts and have not converted to an individual policy. The problem with group life insurance, however, is the premiums are age-banded and increase every five years, which makes it prohibitively costly over time—especially in your retirement years. If you’re reasonably healthy, you may find getting an individual insurance policy more cost friendly.
“ Be sure you’re considering all possibilities when you enter your golden years.”
While we’re on the topic of life insurance, one strategy I almost never recommend for federal retirees is the so-called pension maximization strategy. Rather than electing a survivor annuity, the idea is to use some of the increased annuity income to purchase life insurance and pocket the rest. The problem is, if you compare the cost of the survivor annuity to the cost of insurance needed to replace the survivor annuity at your death, the numbers don’t work. For example, according to Fidelity’s guaranteed income estimator, a 65-year-old female will need to invest $401,000 in an annuity to replace the $20,000 annual income with a 2 percent COLA. A 15-year term insurance policy for a 65-yearold male with a standard health rating will cost about $4,880 per year from an A+ rated insurance company. The cost for comparable a 20-year term policy is about $7,100 per year. And bear in mind, term life insurance is temporary coverage; if you live beyond the term period, the coverage ends. The other option is to purchase a permanent life insurance policy, but that would cost even more. I’m sure a slick sales person could massage the numbers, say you don’t need to purchase that much life insurance, that you could invest the proceeds and take withdrawals and so on. All that means is you’re taking on more risk. Is it really worth it? The surviving spouse of a federal retiree may lose between 40 percent and 50 percent of the guaranteed income, but studies show that a oneperson household needs about 80 percent of their original income to continue the same standard of living that the couple had. Be sure you’re considering all possibilities when you enter your golden years. —MARK A. KEEN, CFP®, PARTNER, KEEN & POCOCK. OFFERS SECURITIES AND ADVISORY SERVICES THROUGH THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA). MARK IS AN INVESTMENT ADVISOR REPRESENTATIVE AND REGISTERED PRINCIPAL OF SFA. W W W. N A R F E . O R G
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Open Season Report
O
PEN SEASON REPORT
2018 OPEN SEASON: NOVEMBER 12-DECEMBER 10
FEHB PREMIUMS
T
he Office of Personnel Management (OPM) announced September 26 the 2018 premium rates for the Federal Employees Health Benefits (FEHB) Program. The enrollee share of premiums for non-postal employees and all annuitants will increase an average of 1.5 percent in 2019. (Postal employees pay a different rate because of collective bargaining agreements.) The average increase in the government share of premiums will be 1.2 percent. The overall average total premium will be 1.3 percent in 2019, the lowest increase in 23 years (0.6% in 1996). Starting this year, all FEHB carriers may offer three plan options of any plan type. Overall, the FEHB Program will offer 265 health plan choices in 2019. The actual number of choices available to any given enrollee will be lower and will vary by geographic location. Changes in FEHB coverage may be made during Federal Benefits Open Season, November 12-December 10. Also included in Open Season are the Federal
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Employees Dental and Vision Program (FEDVIP) (see p. 50) and the Federal Flexible Spending Account Program (FSAFEDS). There is no need for enrollees to re-enroll in FEHB and FEDVIP unless they want to change plans or their current plan ceases participation. However, employees must re-enroll in FSAFEDS every year to continue to participate. Enrollee Premiums. The tables on pages 39 and 40 list the six open-to-all, FFS plans, the four
restricted FFS plans and the largest participating HMOs; the 2019 cost of each plan for both employees and retirees; and the increase/ decrease from 2019. Rates listed are applicable to most non-postal federal employees as well as all retirees and survivors. For a listing of all premiums, go to www.opm.gov/ healthcare-insurance/ open-season/. Changes in FEHB enrollee (Continued on p. 41)
TOTAL PREMIUM INCREASE THE LOWEST SINCE 1996
For plan year 2019, the average percentage increase in FEHB Progam plan premiums of 1.3 percent is the lowest increase since 1996. The increase is competitive with other large private and public sector employers whose average 2019 premium increases range from 1.16 percent to 6 percent. “These low premium increases testify to OPM’s ongoing commitment to ensure the quality and affordability of insurance benefits,” said OPM Director Jeff Pon. “While this announcement is welcome news for Federal employees and retirees, they should continue to carefully review their plan choices to find the plans and enrollment options that best meet their healthcare needs. I urge them to take advantage of the information available to them to choose wisely this Open Season.” For a detailed listing of FEHB Program premium rates and FEDVIP rates, visit www. opm.gov/healthcare-insurance/healthcare/planinformation/premiums/.
KEY: Employees pay biweekly Annuitants pay monthly
2019 PREMIUMS — FEE FOR SERVICE Plan Option
Code
Total Premium biweekly monthly
Gov’t Pays biweekly monthly
Enrollee Pays biweekly monthly
Enrollee Increase/ Decrease biweekly monthly
OPEN TO ALL
APWU HEALTH PLAN High Self 471 $335.18 $726.22 High Self & Family 472 $804.42 $1,742.91 High Self Plus One 473 $703.86 $1,525.03 CDHP Self 474 $275.85 $597.68 CDHP Self & Family 475 $654.04 $1,417.09 CDHP Self Plus One 476 $599.54 $1,299.00 BLUE CROSS BLUE SHIELD SERVICE BENEFIT PLAN Standard Self 104 $342.41 $741.89 Standard Self & Family 105 $793.53 $1,719.32 Standard Self Plus One 106 $748.81 $1,622.42 Basic Self 111 $294.90 $638.95 Basic Self & Family 112 $702.56 $1,522.21 Basic Self Plus One 113 $662.84 $1,436.15 GEHA BENEFIT PLAN High Self 311 $336.15 $728.33 High Self & Family 312 $838.27 $1,816.47 High Self Plus One 313 $739.53 $1,602.32 Standard Self 314 $235.13 $509.45 Standard Self & Family 315 $592.46 $1,283.66 Standard Self Plus One 316 $505.54 $1,095.34 HDHP Self 341 $234.82 $508.78 HDHP Self & Family 342 $582.69 $1,262.50 HDHP Self Plus One 343 $504.86 $1,093.86 MHBP Value Self 414 $220.23 $477.17 Value Self & Family 415 $532.24 $1,153.19 Value Self Plus One 416 $521.82 $1,130.61 Standard Self 454 $266.14 $576.64 Standard Self & Family 455 $618.48 $1,340.04 Standard Self Plus One 456 $612.59 $1,327.28 HDHP Self 481 $259.40 $562.03 HDHP Self & Family 482 $602.74 $1,305.94 HDHP Self Plus One 483 $574.05 $1,243.78 NALC High Self 321 $314.81 $682.09 High Self & Family 322 $706.93 $1,531.68 High Self Plus One 323 $692.97 $1,501.44 CDHP Self 324 $218.55 $473.53 CDHP Self & Family 325 $492.77 $1,067.67 CDHP Self Plus One 326 $477.39 $1,034.35 Value Self KM1 $179.37 $388.64 Value Self & Family KM2 $404.60 $876.63 Value Self Plus One KM3 $380.78 $848.86 SAMBA High Self 441 $421.24 $912.69 High Self & Family 442 $1,010.97 $2,190.44 High Self Plus One 443 $926.72 $2,007.89 Standard Self 444 $317.03 $686.90 Standard Self & Family 445 $729.20 $1,579.93 Standard Self Plus One 446 $697.49 $1,511.23
$230.18 $525.32 $492.27 $206.89 $490.53 $449.66
$498.72 $1,138.19 $1,066.59 $448.26 $1,062.82 $974.25
$105.00 $227.50 $279.10 $604.72 $211.59 $458.44 $68.96 $149.42 $163.51 $354.27 $149.88 $324.75
$11.96 $27.20 $25.80 $4.99 $9.98 $9.14
$25.91 $58.94 $55.89 $10.81 $21.62 $19.82
$230.18 $525.32 $492.27 $221.18 $525.32 $492.27
$498.72 $1,138.19 $1,066.59 $479.21 $1,138.19 $1,066.59
$112.23 $268.21 $256.54 $73.72 $177.24 $170.57
$243.17 $581.13 $555.83 $159.74 $384.02 $369.56
-$0.93 -$3.74 -$1.27 $0.00 -$3.74 -$1.27
-$2.01 -$8.10 -$2.76 $0.00 -$8.10 -$2.76
$230.18 $525.32 $492.27 $176.35 $444.35 $379.16 $176.12 $437.02 $378.65
$498.72 $1,138.19 $1.066.59 $382.09 $926.75 $821.51 $381.59 $946.88 $820.40
$105.97 $312.95 $247.26 $58.78 $148.11 $126.38 $58.70 $145.67 $126.21
$229.61 $678.06 $535.73 $127.36 $320.91 $273.83 $127.19 $315.62 $273.46
$2.40 $43.70 $6.05 $3.84 $18.19 $8.26 $0.86 $8.89 $1.86
$5.21 $94.68 $13.10 $8.33 $39.41 $17.91 $1.88 $19.26 $4.04
$165.17 $399.18 $391.37 $199.61 $463.86 $459.44 $194.55 $452.06 $430.54
$357.88 $864.89 $847.96 $432.48 $1,005.03 $995.46 $421.52 $979.46 $932.84
$55.06 $133.06 $130.45 $66.53 $154.62 $153.15 $64.85 $150.68 $143.51
$119.29 $288.30 $282.65 $144.16 $335.01 $331.82 $140.51 $326.48 $310.94
$-2.29 $-5.54 $-5.44 $-0.67 $-1.56 $-1.54 $-0.65 $-1.53 $-1.45
$-4.97 $-12.01 $-11.78 $-1.45 $-3.38 $-3.35 $-1.42 $-3.30 $-3.14
$230.18 $525.32 $492.27 $163.91 $369.58 $358.04 $134.53 $303.45 $293.84
$498.72 $1,138.19 $1,066.59 $355.15 $800.75 $775.76 $291.48 $657.47 $636.65
$84.63 $181.61 $200.70 $54.64 $123.19 $119.35 $44.84 $101.15 $97.94
$183.37 $393.49 $434.85 $118.38 $266.92 $258.59 $97.16 $219.16 $212.21
$5.84 $8.68 $13.64 $1.08 $4.74 $3.48 $0.88 $3.89 $2.85
$12.66 $18.81 $29.55 $2.32 $10.27 $7.53 $1.91 $8.44 $6.18
$230.18 $498.72 $525.32 $1,138.19 $492.27 $1,066.59 $230.18 $498.72 $525.32 $1,138.19 $492.27 $1,066.59
$191.06 $485.65 $434.45 $86.85 $203.88 $205.22
$413.97 $1,052.25 $941.30 $188.18 $441.74 $444.64
$-0.93 $-3.74 $-1.27 $-10.74 $-26.28 $-22.84
$-2.01 $-8.01 $-2.76 $-23.26 $-56.94 $-49.49
RESTRICTED
COMPASS ROSE HEALTH PLAN (members of the Intelligence Community, employees of Departments of Defense and State) High Self 421 $321.36 $696.28 $230.18 $498.72 $91.18 $197.56 $-0.93 $-2.01 High Self & Family 422 $771.27 $1,671.09 $525.32 $1,138.19 $245.95 $532.90 $-3.74 $-8.10 High Self Plus One 423 $707.00 $1,531.83 $492.27 $1,066.59 $214.73 $465.24 $-1.27 $-2.96 FOREIGN SERVICE BENEFIT PLAN (American Foreign Service personnel, Departments of State and Defense, USAID, Foreign Agricultural and Commercial services, other executive branch employees assigned overseas; Foreign Service retirees) High Self 401 $268.18 $581.06 $201.14 $435.80 $67.04 $145.26 $0.99 $2.14 High Self & Family 402 $663.46 $1,437.50 $497.60 $1,078.13 $165.86 $359.37 $2.46 $5.33 High Self Plus One 403 $656.86 $1,423.20 $492.27 $1,066.39 $164.59 $356.61 $2.81 $6.08 RURAL CARRIER BENEFIT PLAN (active and retired rural letter carriers) High Self 381 $316.47 $685.69 $230.18 $498.72 $86.29 $186.97 $-0.93 $-2.01 High Self & Family 382 $625.08 $1,354.34 $468.81 $1,015.76 $156.27 $338.58 $3.06 $6.63 High Self Plus One 383 $612.83 $1,327.80 $459.62 $995.85 $153.21 $331.95 $3.01 $6.51 PANAMA CANAL AREA BENEFIT PLAN High Self 431 $277.60 $601.47 $208.20 $451.10 $69.40 $150.37 $3.31 $7.17 High Self & Family 432 $559.47 $1,255.52 $434.60 $941.64 $144.87 $313.88 $6.90 $14.95 High Self Plus One 433 $554.06 $1,200.46 $415.55 $900.35 $138.51 $300.11 $6.59 $14.28
Open Season Report
KEY: Employees pay biweekly Annuitants pay monthly
2019 PREMIUMS — LARGEST HMOS* Total Premium Gov’t Pays State(s) Plan Option Code biweekly monthly biweekly monthly DC, MD, VA AETNA OPEN ACCESS - CAPITOL REGION High Self JN1 $516.52 $1,119.13 $230.18 $498.72 High Self & Family JN2 $1,161.22 $2,515.98 $525.32 $1,138.19 High Self Plus One JN3 $1,149.71 $2,491.04 $492.27 $1,066.59 Basic Self JN4 $314.06 $680.46 $230.18 $498.72 Basic Self & Family JN5 $718.73 $1,557.25 $525.32 $1,138.19 Basic Self Plus One JN6 $660.00 $1,430.00 $492.27 $1,066.59 ID, WA KAISER HEALTH PLAN OF WASHINGTON High Self 541 $376.34 $815.40 $230.18 $498.72 High Self & Family 542 $827.96 $1793.91 $525.32 $1,138.19 High Self Plus One 543 $827.96 $1793.91 $492.27 $1,066.59 Standard Self 544 $270.08 $585.17 $202.56 $438.88 Standard Self & Family 545 $621.19 $1,345.91 $465.89 $1,009.43 Standard Self Plus One 546 $621.19 $1,345.91 $465.89 $1,009.43 DC, MD, VA M.D. INDIVIDUAL PRACTICE ASSOCIATION (MDIPA) High Self JP1 $365.01 $790.86 $230.18 $498.72 High Self & Family JP2 $1023.48 $2,217.54 $525.32 $1,138.19 High Self Plus One JP3 $721.86 $1,544.53 $492.27 $1,066.59 CA KAISER FOUNDATION HEALTH PLAN OF N. CALIFORNIA High Self 591 $458.07 $992.49 $230.18 $498.72 High Self & Family 592 $1,093.45 $2,369.14 $525.32 $1,138.19 High Self Plus One 593 $1,093.45 $2,369.14 $492.27 $1,066.59 Standard Self 594 $368.11 $797.57 $230.18 $498.72 Standard Self & Family 595 $861.36 $1,866.28 $525.32 $1,138.19 Standard Self Plus One 596 $861.36 $1,866.28 $492.27 $1,066.59 Basic Self KC1 $295.76 $640.81 $221.82 $480.61 Basic Self & Family KC2 $692.05 $1,499.44 $519.04 $1,124.58 Basic Self Plus One KC3 $692.05 $1,499.44 $492.27 $1,066.59 CA KAISER FOUNDATION HEALTH PLAN OF S. CALIFORNIA High Self 621 $317.17 $687.20 $230.18 $498.72 High Self & Family 622 $733.04 $1,588.25 $525.32 $1,138.19 High Self Plus One 623 $733.04 $1,588.25 $492.27 $1,066.59 Standard Self 624 $199.09 $431.36 $149.32 $323.52 Standard Self & Family 625 $460.12 $996.93 $345.09 $747.70 Standard Self Plus One 626 $460.12 $996.93 $345.09 $747.70 DC, MD, VA KAISER FOUNDATION HEALTH PLAN MID-ATLANTIC STATES High Self E31 $319.70 $692.68 $230.18 $498.72 High Self & Family E32 $735.30 $1,593.15 $525.32 $1,138.19 High Self Plus One E33 $735.30 $1,593.15 $492.27 $1,066.59 Standard Self E34 $240.81 $521.76 $180.61 $391.32 Standard Self & Family E35 $553.84 $1,199.99 $415.38 $899.99 Standard Self Plus One E36 $553.84 $1,199.99 $415.38 $899.99 Basic Self T71 $193.90 $420.12 $145.43 $315.09 Basic Self & Family T72 $473.61 $1,026.16 $355.21 $769.62 Basic Self Plus One T73 $431.49 $934.90 $323.62 $701.18 CO KAISER FOUNDATION HEALTH PLAN OF COLORADO High Self 651 $341.05 $738.94 $230.18 $498.72 High Self & Family 652 $770.79 $1,670.05 $525.32 $1,138.19 High Self Plus One 653 $770.79 $1,670.05 $492.27 $1,066.59 Standard Self 654 $270.77 $586.67 $203.08 $440.00 Standard Self & Family 655 $611.96 $1,325.91 $458.97 $994.43 Standard Self Plus One 656 $611.96 $1,325.91 $458.97 $994.43 Basic Self N41 $198.39 $429.85 $148.79 $322.39 Basic Self & Family N42 $448.35 $971.43 $336.26 $728.57 Basic Self Plus One N43 $448.35 $971.43 $336.26 $728.57
Enrollee Pays biweekly monthly $286.34 $620.41 $635.90 $1,377.79 $657.44 $1,424.45 $83.88 $181.74 $193.41 $419.06 $167.73 $363.41 $146.16 $302.64 $335.69 $67.52 $155.30 $155.30
$316.68 $655.72 $727.32 $146.29 $336.48 $336.48
Enrollee Increase/Decrease biweekly monthly $6.47 $12.89 $15.19 $7.20 $14.48 $7.00
$14.03 $27.93 $32.90 $15.60 $32.20 $15.16
-$5.63 -$14.08 -$11.61 -$2.75 -$6.31 -$6.31
-$12.20 -$30.51 -$25.17 -$5.96 -$13.68 -$3.68
$134.83 $292.14 $498.16 $1,079.35 $220.59 $477.94
$32.80 $71.08 $90.82 $196.78 $58.84 $127.49
$227.89 $568.13 $601.18 $137.93 $336.04 $369.09 $73.94 $173.01 $199.78
$493.77 $1230.95 $1302.55 $298.85 $728.09 $799.69 $160.20 $374.86 $432.85
$32.20 $75.56 $78.03 $16.73 $37.56 $40.03 -$0.53 -$12.43 -$6.24
$69.99 $163.71 $169.05 $36.25 $81.38 $86.72 -$1.15 -$5.26 -$13.53
$86.99 $207.72 $240.77 $49.77 $115.03 $115.03
$188.48 $450.06 $521.66 $107.84 $249.23 $249.23
$11.05 $27.23 $29.70 $1.80 $4.14 $4.14
$23.94 $59.00 $64.34 $3.90 $8.97 $8.97
$89.52. $209. 98 $243.03 $60.20 $138.46 $138.46 $48.47 $118.40 $107.87
$193.96 $454.96 $526.56 $130.44 $300.00 $300.00 $105.03 $256.54 $233.72
$13.33 $30.56 $33.03 $1.94 $4.44 $4.44 -$4.61 -$9.04 -$8.23
$28.87 $66.22 $71.56 $4.20 $9.63 $9.63 -$9.98 -$19.58 -$17.83
$110.87 $245.47 $278.52 $67.69 $152.99 $152.99 $49.60 $112.09 $112.09
$240.22 $531.86 $603.46 $146.67 $331.48 $331.48 $107.46 $242.86 $242.86
$15.09 $32.49 $34.96 $8.72 $19.71 $19.71 $3.28 $7.40 $7.40
$32.70 $70.40 $75.74 $18.90 $42.71 $42.71 $7.09 $16.02 $16.02
*Based on information provided by the Office of Personnel Management (OPM). If your plan is not listed, it simply means that your plan is not one of the largest. OPEN SEASON CHANGES for employees are effective at the beginning of the first pay period after January 1, 2019. Changes for retirees and survivor annuitants are effective January 1, 2019, and premium changes will
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be reflected in February 1, 2019, annuity payments. If verified enrollment is required, the change notice from OPM should suffice for annuitants; the notification from their agency will suffice for employees.
Open Season Report
(Continued from p. 38) premiums vary from plan to plan, but, on average, enrollees with Self Only coverage will pay $1.53 more per biweekly pay period; enrollees with Self Plus One coverage will pay $3.06 more per biweekly pay period; and enrollees with Self and Family coverage will pay $2.55 more per biweekly pay period. (Employees pay premiums on a biweekly basis; retirees pay premiums on a monthly basis.) Enrollees with Self Only coverage in the popular Blue Cross Blue Shield (BCBS) Standard option
will pay $112.23 per biweekly pay period in 2019; those with Self Plus One coverage will pay $256.54 per biweekly pay period; and those with Self and Family coverage will pay $268.21 per biweekly pay period. There will be no increase for the standard and basic options.
CHANGES FOR 2019
New Third Plan Options. The following health plans have added a third option available nationwide: Blue Cross Blue Shield Service Benefit Plan; Humana Health Plan of Ohio (Cincinnati); and Select
IMPORTANT OPEN SEASON INFORMATION
Open Season doesn’t start until November 12. The 2019 premium rates are available, but many of the materials you will need to access to make your decision for 2019 will not be available until shortly before the start date. The following are ways to get information about Open Season: • THE WEB: 2019 premium charts for all Federal Employees Health Benefits (FEHB) Program plans are available at: www.opm.gov/ healthcare-insurance/healthcare/plan-information/premiums. General information about Open Season can be found at: www.opm.gov/ healthcare-insurance/open-season. • FACEBOOK: Updates on Open Season are available by Facebook at: www.facebook.com/USOPM.
PROVIDING DEPENDENT INFORMATION
If you are changing your health plan this Open Season and have either a Self and Family or Self Plus One enrollment, you will need to provide information about the dependents covered under your enrollment.
ADDITIONAL INFORMATION
Thinking About Retirement? Information about retirement and FEHB can be found at: www.opm.gov/healthcare-insurance/fastfacts/thinkfehb. pdf. • For the Federal Employees Dental and Vision Insurance Program (FEDVIP) and retirement, go to www.opm.gov/healthcare-insurance/ fastfacts/thinkfedvip.pdf. OPM also has a guide for retirees and employees near retirement that gives an overview of FEHB, FEDVIP, the Federal Employees’ Group Life Insurance Program (FEGLI) and the Federal Long Term Care Insurance Program (FLTCIP). Go to www.opm.gov/healthcare-insurance/ Guide-Me/Retirees-Survivors/.
Health of Utah (statewide). New Plan Options. The following plans have new options: • Av-Med Health Plan (HDHP) (Codes: WZ1, WZ2, WZ3) • BlueAdvantage - Colorado (High) (Codes: WW1, WW2, WW3) • Blue Cross Blue Shield Service Benefit Plan (FEP Blue Focus) (Codes: 131, 132, 133) • Blue Shield of California (Standard) (Codes: SI4, SI5, SI6) • HIP of Greater New York (Standard) (Codes: YL4, YL5, YL6) • Humana CoverageFirst Cincinnati (CDHP and Value Codes: W61, W62, W63) • Humana CoverageFirst Daytona (CDHP and Value Option - Codes: W91, W92, W93, W94, W95, W96) • Humana CoverageFirst Orlando (CDHP and Value Codes X21, X22, X23, X24, X25, X26) • Humana Health Plan of Ohio (Value - Codes: X31, X32, X33, X34, X35, X36) • Medical Mutual of Ohio (Northwest) (Basic and Standard - Codes: X61, X62, X63, X64, X65, X66) • Medical Mutual of Ohio (Southwest) (Basic and Standard - Codes: YF1, YF2, YF3, YF4, YF5, YF6) • Optima Health Plan - Virginia (HDHP - Codes: PG4, PG5, PG6) • SelectHealth of Utah (HDHP Codes: WX1, WX2, WX3) Plan Terminations. Four health plans will drop out of the FEHB after December 31, 2018: • Healthnet of Arizona, Inc. (Cochise, Gila, Maricopa, Pima, Pinal and Santa Cruz counties) • United Healthcare of California (Central and Southern California) (Continued on p. 42) W W W. N A R F E . O R G
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Open Season Report
(Continued from p. 41) • United Healthcare Plan of the River Valley Inc. (Eastern and Central Iowa and West Central Illinois) • Physicians Plus Insurance Corporation (South Central Wisconsin) Enrollees in these plans must select new coverage during Open Season; otherwise they are enrolled in Blue Cross Blue Shield Service Benefit Plan FEP
Blue Focus, the lowest-cost nationwide plan option for 2019, as determined by OPM. All HMO enrollees should review their plan’s 2019 brochure to see if they still live or work in their plan’s service area. Enrollees will know if their plan is terminating from two sources: 1) Pre-Open Season letter from OPM to all agency benefit officers 2) Notice to members from terminating plans by mail.
INFORMATION SOURCES
Employees will receive Open Season information from their agencies, and most eligible annuitants, survivor annuitants and former spouse annuitants will receive information from OPM. Plans will not automatically send enrollees their 2019 brochures. You must request a plan brochure or download it from www.opm.gov/ insure. —FEDERAL BENEFITS INSTITUTE
SELF-PLUS-ONE CAUTION! Make sure you do not pay more than you have to! In most cases, Self-Plus-One premiums are lower, but hundreds of thousands of enrollees have not switched from Self Plus Family. However, there are plans in which the enrollee premium for Self-Plus-One coverage is higher than the enrollee premium for Self and Family. Check your plan’s premiums for 2019 to make sure the SelfPlus-One premium is again lower than that of Self and Family.
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Open Season Report
FEHB FAQS FOR OPEN SEASON
W
hy are the enrollee shares for some SelfPlus-One enrollments the same or higher than Self-andFamily enrollee shares for the same plan?
The Office of Personnel Management (OPM) has provided the following answer to that question: “For most enrollees, the enrollee share for Self Plus One will be lower than the enrollee share for Self and Family. However, it is possible that some plans will have higher enrollee shares for self-plus-one enrollments than for self-andfamily enrollments. The statutory formula that is used to calculate the government contribution is based on the average of all plan premiums and requires that OPM calculate a maximum contribution for each enrollment type. In other words, there is a limit to how much the government will contribute toward the cost of a Self-Only, Self-Plus-One or Self-and-Family enrollment. The government contributes the lesser of the maximum contribution or 75 percent of the total premium. The remaining amount is the enrollee share (how much the enrollee must pay). In some cases, such as plans with a premium cost that is above the program average, this calculation may result in a higher enrollee
share for a Self Plus One enrollment than a Self and Family enrollment.” See example in the chart below.
W
hich benefit is the most important to consider?
For those not enrolled in Medicare Part B, the catastrophic protection benefit is very important. It puts a dollar limit on what you have to pay out of pocket in terms of co-payments and coinsurance for the expenses that the plan covers. If a federal employee is married to another federal employee and they don’t have any eligible children under their FEHB plan, then it’s usually less expensive to maintain a separate Self-Only FEHB plan. versus a shared Self-Plus-One plan However, you should carefully compare the options, especially prescription drug coverage.
I
f I make an Open Season enrollment change and I have to go to the doctor after January 1, which plan do I contact to provide the insurance coverage based on my visit?
Your new plan is not responsible for providing coverage until the effective date of your enrollment change, which for most employees is the first day of the first full pay period in January. If you need medical services before the effective date of your Open Season enrollment, you should contact your old plan.
SELF PLUS ONE SELF & FAMILY
A B C D E 44
Total premium Lesser of
$400 Max Gov’t. Contrib. $291 A x 75 $300 Lesser of B $291 Gov’t. Contrib. and C Enrollee Contrib. A-D $109
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$420 $320 $315 $315 $105
Please remember, while the new enrollments are not effective until the first full pay period in January, the new plan benefits are effective January 1. Your old plan will provide coverage according to the new contract. These expenses will count toward your prior year’s deductible. If you are an annuitant, you should contact your new plan. Your Open Season enrollment is effective January 1.
M
y health maintenance organization (HMO) sent a notice that it will stop participating in the FEHB Program during the new Open Season and now I have no plans where I live. What can I do?
You may not be eligible to enroll in an HMO plan, but there are several fee-for-service plans available nationwide to all federal employees and annuitants. These plans are: • APWU Health Plan, • Blue Cross Blue Shield Federal Employee Program - Standard Option, • Blue Cross Blue Shield Federal Employee Program - Basic Option, • GEHA Health Savings Advantage high-deductible health plan (HDHP), • Mail Handlers Benefit Plan (MHBP), MHBP - HDHP, • National Association of Letter Carriers Health Benefit Plan, • SAMBA – High Option, and • SAMBA – Standard Option. Please review the brochures of these plans to determine which plan best meets your medical needs. If federal enrollees have HMOs in their local areas that do not (Continued on p. 48)
Open Season Report
Got questions about Medicare and the FEHB? Get answers at “Medicare and the FEHB” and in the NARFE Federal Benefits Institute, www.narfe.org.
IMPORTANT REMINDERS FOR ALL FEHB PARTICIPANTS • RESEARCH PREFERRED PROVIDERS. Fee-for-service (FFS) plans use preferred provider organizations (PPOs) and doctors to help contain program costs and keep premiums at a reasonable rate. Usually, you will save a lot on out-of-pocket costs if you use your plan’s preferred hospitals or doctors. However, PPO arrangements are business contracts that are not always renewed. PPO arrangements can be made and also can be discontinued from one year to the next. In addition, there may not be PPO arrangements in all parts of the country. If you are enrolled in a FFS plan or thinking of enrolling in one, you should check with the hospitals and doctors you use and ask them if they are PPO providers in your plan. You also can review your plan’s PPO directory to see if your doctor or hospital is a PPO provider for your plan.
• ASK QUESTIONS. Be careful to confirm information in your plan’s brochure by speaking with a plan representative. Do not assume anything. For example, plans may describe benefits in terms of “annual” or “annually.” This would seem to mean “each year,” when, in fact, it may mean that a year must have elapsed before it will cover you again. Also, while a hospital may be a PPO for your plan, not all departments in that hospital are PPO providers. Hospitals contract out much of their emergency room, technical and lab work to other groups that may not be PPO providers for your plan, and you will pay more for their services. • ID CARDS. New plan identification cards showing your enrollment are issued by the health plan. If you do not change to another plan or option during Open Season, you don’t necessarily get a new ID card from the plan.
IMPORTANT REMINDERS FOR ANNUITANTS AND SURVIVORS • OPEN SEASON NOTIFICATION. The Office of Personnel Management (OPM) will send you notification by mail or electronically if you have provided OPM with your email address. Both notices will provide details on Open Season and guidance on how to obtain information and materials. • PLAN PARTICIPATION. Make sure your current plan will participate in the Federal Employees Health Benefits (FEHB) Program for 2019. This is especially important if you are currently enrolled in a health maintenance organization (HMO) plan. • STAYING PUT. If, after reading your current plan’s brochure—particularly about changes and premiums for 2019—you decide to continue your current coverage, you do not have to do anything. Your enrollment in your current plan will continue into 2019, and the new premiums will be deducted from your February 1, 2019, monthly annuity payment. • MAKING A CHANGE. For Open Season changes, call the Open Season Express number provided in your FEHB Open Season notice, log on to Open Season Online at the internet address provided in
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your Open Season notice, or contact the Open Season Processing Center provided in your Open Season notice. • LOW ANNUITY. If your monthly annuity is not enough to cover your plan’s 2019 premiums, you have the option to change to a plan that you can afford. You also may pay your monthly premiums directly to OPM if you want to stay with your current plan but your monthly annuity is not sufficient to withhold the premium amount. • MEDICARE ENROLLEES. Make sure you read your plan brochure’s sections titled “When You Have Medicare” and “Coordinating Benefits With Other Coverage.” Section 9 of every FEHB brochure should provide these details. Call a service representative from the plan to address any questions you might have about the coordination of your FEHB benefits with Medicare. • AGE 65 AND NOT ENROLLED IN MEDICARE. Fee-for-service (FFS) plans include a section in their brochures titled “When You Are Age 65 or Over and Do Not Have Medicare.” This section details how, by law, the plan must use Medicare’s approved amounts on which to base its payments.
Open Season Report
(Continued from p. 44) currently participate in the FEHB Program, we encourage them to ask their HMOs to consider the FEHB market for their area.
C
an I enroll online in the Federal Employees Dental and Vision Insurance Program (FEDVIP) without contacting the Office of Personnel Management (OPM), if I keep the same health plan and do I need to do anything?
BENEFEDS is an enrollment and premium processing system sponsored by OPM that you must use to enroll in the Federal Employees Dental and Vision Insurance Program (FEDVIP). BENEFEDS includes a secure website and a call center. BENEFEDS also handles billing and premium administration. It’s the only place to enroll in a FEDVIP plan. You enroll
securely online at www.BENEFEDS. com or by telephone at 1-877-8883337, TTY 1-877-889-5680. Your personal information is safe in the BENEFEDS system. The BENEFEDS.com website employs a number of security features such as password lockouts after three consecutive incorrect attempts, session time-outs to protect unattended machines and encryption to ensure your information is kept private.
I
s it possible to make a serious mistake in choosing an FEHB plan?
You may not be eligible to enroll in an HMO plan, but there are several FFS and CDHP plans available nationwide to all federal employees and annuitants. Specific plan information will be available in mid-October. All cover hospital and physician care, prescriptions,
NARFE PRESIDENT’S RESPONSE TO OPEN SEASON OPM ANNOUNCEMENT
In response to the OPM announcement on Open Season premiums for America’s retired and active federal workers, Richard G. Thissen, president of the National Active and Retired Federal Employees Association (NARFE), released the following statement: “FEHB has been a model healthcare program for years, providing enrollees choices between competing, quality health insurance plans. The very modest increase in premiums for 2019 shows the model is working to keep costs down as well. While, in a perfect world, we would love to see premiums go down, the reality is a 1.3 average increase in premiums – the lowest since the 1996 plan year – is welcome news for federal employees and retirees. “On behalf of NARFE, I would like to thank the hard-working federal employees at the Office of Personnel Management’s Healthcare and Insurance
outpatient diagnostic lab tests, treatment of mental illness, home health care, routine mammograms for women over age 35, routine prostate cancer tests for men over age 40 and smoking cessation programs. Some also cover special benefits such as acupuncture and dental care. In addition, many health maintenance organizations (HMOs) provide more comprehensive preventive care. Generally, you can make a serious mistake only if you enroll in: a costly plan or option when you don’t need one; a plan that doesn’t cover a specific benefit that you need; Self-Only coverage when you need additional coverage or vice versa; or you enroll in a plan that requires you to use preferred providers and there are none in your area. Or, if you live outside the United States and Puerto Rico, and do not enroll in a plan that offers “overseas” benefits. —FEDERAL BENEFITS INSTITUTE
division for their work in keeping premiums down for enrollees going into 2019. “But even with this very modest premium increase, federal employees still face the prospect of their take-home pay decreasing due to the proposed federal pay freeze. It is up to Congress to step up to prevent that from happening. Unfortunately, it appears House and Senate negotiations have stalled on the appropriations bill that, if passed, would provide a 1.9 percent average pay increase, and the decision on federal pay likely will be delayed until after the election. We urge supportive members of Congress to continue to push for a federal pay raise to cover even this very modest premium increase. ”Open Season, the annual period when eligible federal employees, retirees and survivors can make changes to their health benefits coverage for the following year, will be held November 12 through December 10, 2018.”
DON’T MISS THE DECEMBER ISSUE! • Specific FEHB Plan Changes * Prescription Drug Guide • Dental & Vision Plan Premiums 48
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Open Season Report
FEDVIP PREMIUMS
T
he premiums for the Federal Employees Dental and Vision Insurance Program (FEDVIP) will increase 1.2 percent for dental and drop 2.8 percent for vision in 2019, the Office of Personnel Management (OPM) announced September 26. FEDVIP is separate and different from the Federal Employees Health Benefits (FEHB) Program. This will also be the first year that uniformed service retirees and their families can enroll in FEDVIP dental plans and the first year that active duty service members’ families can enroll in FEDVIP vision plans. OPM has contracted with 12 insurance carriers to provide comprehensive coverage under 14 different plans.
DENTAL INSURANCE
There are 10 dental plans: • Aetna Life Insurance Company • Delta Dental Services • Dominion Dental • FEP BlueDental (Blue Cross Blue Shield) • Humana • Government Employees Health Association, Inc. (GEHA) • EmblemHealth, Inc. • MetLife, Inc. • Triple-S Salud • United Concordia Companies, Inc. Dental plans will provide a comprehensive range of services, including the following: • Class A (Basic) services, which include oral examinations, prophylaxis, diagnostic evaluations, sealants and X-rays. • Class B (Intermediate) services, which include restorative procedures such as fillings, prefabricated stainless steel crowns, periodontal scaling, tooth extractions and denture adjustments. 50
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• Class C (Major) services, which include endodontic services such as root canals, periodontal services such as gingivectomy, major restorative services such as crowns, oral surgery, bridges and prosthodontic services such as complete dentures. • Class D (Orthodontic) services with a 12-month waiting period. Please review the dental plans’ benefits material for detailed information on the benefits covered, cost-sharing requirements and provider directories.
VISION INSURANCE
There are four vision plans: • Aetna Life Insurance Company • FEP BlueVision (Blue Cross Blue Shield) • United Healthcare Vision Plan • Vision Service Plan (VSP) Vision plans will provide comprehensive eye examinations and coverage for lenses, frames and contact lenses (in lieu of eyeglasses). There are no deductibles or waiting periods. Other benefits such as discounts on LASIK surgery also may be available. You must review the vision plans’ benefits material for detailed information on the benefits covered, cost-sharing requirements and provider directories.
PREMIUMS
Premiums will vary by plan and by enrollment type. Premiums for the dental plans are based on home ZIP codes. (For most dental plans, there are five “rating areas” for each carrier. The rating areas for each carrier are not the same for all plans. See the specific plan brochure or call the plan’s customer service number to determine your region and premium.) There is no government contribution to FEDVIP premiums.
If you are a federal employee, your premiums will be taken from your salary on a pretax basis when your salary is sufficient to make the premium withholding. If you are an annuitant, premiums will be withheld from your monthly annuity check when your annuity is sufficient. Based on the Internal Revenue Code, pretax premiums are not available for annuitants. For information on each plan’s premiums, visit www.opm.gov/ healthcare-insurance/dentalvision/plan-information.
FEDVIP FAST FACTS
Eligibility. Federal and U.S. Postal Service employees eligible for the FEHB or the Health Insurance Marketplace (Exchange), unless excluded by law or regulation, are eligible to enroll in FEDVIP. Annuitants are eligible regardless of FEHB or Health Insurance Marketplace eligibility. Enrollment options. The following options are available: • Self Only. Covers only the enrolled employee or annuitant; • Self Plus One. Covers the enrolled employee or annuitant plus one eligible family member specified by the enrollee; and • Self and Family. Covers the enrolled employee or annuitant and all eligible family members. Eligible family members. Eligible family members include your spouse, unmarried dependent children under age 22, and unmarried dependent children age 22 or over incapable of self-support because of a mental or physical disability that existed before age 22. The Affordable Care Act does not mandate coverage under dental and vision plans for dependents up to age 26, as it does for health insurance.
NARFE’S PREMIER CONFERENCE Right: Conference attendees give a standing ovation to former NFL star Joe Theismann (below). Bottom: Conference emcee Michael Jackson offers a warm welcome to conference-goers.
JACKSONVILLE, FLORIDA • AUG 26-28
INSIGHT, ENTHUSIASM ABOUND AT FEDCON18
“ I am so happy I attended FEDcon18! I learned so much!”
They converged on the Hyatt Regency Riverfront in Jacksonville, Florida in late August for an event that was sure to make history: the first-ever FEDcon. More than 700 people—active and retired federal workers—took advantage of this new event that offered training, education and networking opportunities. Keynote speakers offered their wisdom on coping with change, leadership, overcoming challenges, looking to the future, and being our best selves wherever we are in our lives. Breakout session leaders offered insights on key areas of retirement and benefit planning, advocacy and leadership. Rooms overflowed with energy and curiosity. Many, even those uncertain of what to expect from a brand new NARFE conference, found themselves engaged and eager to share their questions and ideas. Conversations spilled from meeting room to hallway, continuing through refreshment breaks in NARFETown and the exhibit area.
LEARN. ADVOCATE. LEAD.
Photos by Ken McCray Photography Stories by Helen Mosher, Jill Talley and Samuel Bartels
FEDCON18 SPEAKERS INSPIRE, MOTIVATE ATTENDEES
K
eynote speakers delivered powerful messages, each focusing on a theme relevant to the federal workforce. Remembered for the painful, career-ending hit he took in the National Football League, Joe Theismann talked about embracing the concept of change. As Feds are adapting to generational, operational and technological change, and NARFE members come to appreciate changes in how the Association does business, Theismann relayed to attendees that change can be difficult but also produce positive results. Award-winning actor Henry Winkler (the Fonz from Happy Days) enlightened attendees about his personal and professional experiences overcoming adversity. From being overlooked because of dyslexia to competing for limited acting roles later in life, Winkler reminded Feds that it’s possible
to bounce back, even when negative public perceptions and misinformation campaigns about civil servants tarnish their overall image. Former astronaut Mike Massimino might be the closest that FEDcon18 attendees have ever gotten to outer space, but his address was grounded with leadership lessons and principles from his days of being a civil servant. Even though his career took him out of this world, he related with other Feds in feeling frustrated with processing delays and reaching informed agency representatives that could answer his benefit questions. As FEDCon18 was also an opportunity to recognize and appreciate the work of the federal workforce, Massimino served as a beacon of inspiration, demonstrating excellence in public service.
As an expert in federal benefits with a career dedicated to federal retirement planning, Tammy Flanagan led the audience to think differently about retirement. As people are living and working longer these days, Flanagan shared a variety of new ways to look at retirement options so that active and retired Feds can prepare for and enjoy a retirement that is realistic but also meets their unique needs, interests and expectations.
Clockwise from top right: Henry Winkler delights conference attendees (bottom right) with his tales of overcoming adversity on his way to success. Right: retirement expert Tammy Flanagan shares tips on being productive in retirement through volunteering and the gig economy. Below: former astronaut Mike Massimino reminds attendees that government employees are asked to do the impossible but “we figure out how to do it.”
“ Honestly, I did not expect much. I went home proud of my career, recharged to conduct my NARFE duties, and with contact information for my NARFE counterparts around the country.”
W W W. N A R F E . O R G
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Breakout sessions featured speakers on such topics as understanding federal benefits, advocacy responsibilities, social media and leadership development. Above: participants brainstorm ways to grow their NARFE chapters. Left: attendees enjoy a dessert break and make new connections between sessions.
EXPERTS SHINE IN FEDCON18 EDUCATIONAL BREAKOUTS
L
ed by subject matter experts in the fields of membership, communications and federal benefits (and advocacy; see page 56), education sessions were packed with individuals yearning for advice and best practices. Federal Benefits experts Mark Keen, financial planner; Tammy Flanagan, retirement expert; and James Marshall, deputy director of NARFE’s Federal Benefits Institute,
advised attendees on how to prepare for retirement and adjust their financial situation during retirement. Conversations flowed from session rooms to hallways to NARFETown kiosks, as active Feds and retirees absorbed a wealth of knowledge on such hot topics as the best time to retire, when to begin drawing social security, withdrawal/rollover options with the Thrift Savings Plan (TSP) and contrasting financial considerations under the Federal Employee Retirement System (FERS) and the Civil Service Retirement System (CSRS). Chapter growth and community relations were top of mind for those interested in expanding awareness of NARFE within their local communities. NARFE
Deputy Director Monica Williams and leadership strategist Cynthia D’Amour shared techniques on recruiting new and retaining current members such as attending health fairs, creating new dialogue and developing relationships with local federal agencies. Helen Mosher, staff vice president, communications, and Jill Talley, deputy director, public relations, led discussions on how to be proactive with media relations and expanding digital media activity to connect with broader audiences. Social media expert Matt Baehr shared tips on navigating the numerous social platforms out there. And, as many NARFE members are caring for aging parents, sessions also touched on the financial and emotional challenges experienced by caregivers providing for multiple generations. Top left: FEDcon18 attendees heard from experts on a wide range of disciplines relating to retirement, communications, chapter development and managing the caregiver role. Left: notebooks and close attention were a must for breakout sessions. Bottom left: conference-goers continue their conversations in NARFEtown.
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PON OFFERS THANKS TO FEDS, OPM INSIGHTS
J STRONGER ADVOCATES EMERGE FROM FEDCON18
A
ttendees honed their skills and knowledge through a number of advocacy breakout sessions to maximize their advocacy impact and stick up for Feds in the face of unwarranted attacks on their earned pay and benefits. Staff Vice President for Advocacy Jessica Klement detailed the latest congressional and executive actions impacting the federal community as well as the challenges and opportunities that lie ahead for NARFE and its members for the remainder of the year and into the 116th Congress. Grassroots Program Manager Molly Checksfield explained how to develop strong relationships with congressional legislators. She also demonstrated why grassroots advocacy is essential to combatting threats to the federal community and how NARFE members can boost their outreach effectiveness using NARFE resources. Political Associate Ross Apter coached attendees on building strong state advocacy program. In other sessions, he explained how NARFE-PAC, NARFE’s political arm, works and also provided NARFE-PAC leader at the federation and chapter levels. Cliff Johnson, a public affairs professional, led a session on the power of storytelling for engaging and persuading legislators.
“ Very well done – thank you!” Right: NPR’s Mara Liasson
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eff Pon, Ph.D., the 11th Director of the Office of Personnel Management (OPM), described his personal story and what led him to public service during his FEDcon18 presentation. Pon feels it is time to reshape the civil service for future generations, while “grandfathering” the people we already have to insulate them from abrupt and dramatic change. Portability is key, he continued, to shape the civil service for a workforce that can come and go from federal service. Pon also intends to move the federal system away from the slow, paper-based record-keeping system in favor of digitalization and appfriendly access—even holding up his phone to emphasize this change. Pon said this modernization would allow employees to move from agency to agency to retirement in a smooth, streamlined fashion.
Above: OPM Director Jeff Pon
Pon closed by describing his desire to alter the way civil servants are perceived in America today. Pon believes that civil servants are not given the appreciation they deserve for the vitally important work that they do and the sacrifices that they make on behalf of the American people. He said that he was humbled to speak before a crowd that served its country and thanked them for their service from the bottom of his heart.
THE CIVIL SERVICE IN A HYPER-PARTISAN WORLD
M
ara Liasson, national political correspondent for NPR and contributor to FOX News Channel, joined NARFE at FedCon18 to provide analysis of our hyperpartisan political environment. According to Liasson, our politics have fractured and become increasingly tribal. She recalled the time when our society able to find common ground when there was political discord. Unfortunately, she said, fewer and fewer political leaders exist in
the middle of the political spectrum to bridge the gap, which makes it more challenging for nonpartisan groups to forge forward. In this climate of ever-increasing partisanship, NARFE remains a nonpartisan organization. The federal community has come together under the NARFE banner to protect the dignity and earned pay and benefits of federal public servants. NARFE members come from all over the country, from all over the political spectrum and from a variety of different professional roles. Despite differences, our members share a strong belief that civil servants are the backbone of our nation. As many in our nation become divided by partisanship, it falls to nonpartisan civil servants to bridge the gap and remain the backbone that keeps everything together.
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TAXES ON SOCIAL SECURITY BENEFITS
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o you have to pay taxes on your Social Security benefits? It’s a definite possibility. In fact, as a federal retiree, it’s very likely. However, it
wasn’t always that way. Not until the passage of the 1983 amendments to the Social Security act, which went into effect in 1984, did Social Security benefits, depending on how much other income one had, become potentially taxable.
According to the Social Security Administration (SSA) website, “Some of you have to pay federal income taxes on your Social Security benefits. This usually happens only if you have other substantial income in addition to your benefits (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return).” Of course, “substantial” income is a relative term. What feels substantial to someone living in McAllen, Texas, may feel like minimum wage to someone living in Manhattan, N.Y., which according to Kiplinger are the least expensive and most expensive cities, respectively, in the U.S. Regardless, the IRS considers you to have substantial income if you’re an individual with “combined income” in excess of $25,000, or a married couple filing jointly with combined income in excess of $32,000. More specifically, according to the Internal Revenue Service (IRS), if you: 58
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File a federal tax return as an “individual” and your combined income is • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. • more than $34,000, up to 85 percent of your benefits may be taxable. File a joint return, and you and your spouse have a combined income that is • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits. • more than $44,000, up to 85 percent of your benefits may be taxable. Combined income is defined as your Adjusted Gross Income (AGI) plus non-taxable interest, plus half of your gross Social Security benefits. Although you must add back nontaxable interest when determining your combined income, Roth IRA withdrawals are not counted. Over the years, more and more Social Security recipients are finding they must pay tax
BY MARK A. KEEN,
CFP®
on their benefits, largely due to income thresholds not being indexed to inflation. In fact, in 1984 less than 10 percent of Social Security recipients paid taxes on their benefits. That number has increased to about 56 percent today. If you’re not paying tax on 85 percent of your Social Security benefits, you’ll want to manage your income carefully; otherwise, you may experience some unexpected results. Due to the circular relationship of your other income and taxable Social Security benefits, you may get trapped by what’s called the tax torpedo. The tax torpedo is when your effective marginal rate, the tax rate you pay on each additional dollar of taxable income you generate, is higher than your broker tax. For example, let’s take Mary, who recently retired at the age of 66 and receives a $25,000 Federal Employee Retirement System (FERS) annuity and $24,000 in Social Security benefits. Taking her $25,000 FERS annuity and one half of your Social Security benefit, Mary calculates her combined income as $37,000 and her taxable Social Security benefits as $7,050. Adding $7,050 to $25,000, Mary’s AGI is $32,050 and her taxable income is $18,450 after deducting her $13,600 standard deduction. Mary is buying a new car and plans on taking a Thrift
BENEFITS RESOURCES NARFE offers members a wide range of information on federal benefits. Visit www. narfe.org/federalbenefits and www.narfe.org/ FederalBenefitsInstitute.
Savings Plan (TSP) withdrawal to make the down payment. She understands the progressive nature of the U.S. tax system and wants to keep her taxable income below $38,700, which, for single tax filers, is where the 12 percent tax bracket ends, and the 22 percent bracket starts. Mary decides to take a $10,000 partial withdrawal, believing she’ll owe an additional $1,200 in federal tax as a result. However, when Mary files her tax
return the following April, she’s surprised to learn the TSP withdrawal increased her federal tax liability by a total of $2,200, an effective marginal rate of 22 percent versus the 12 percent tax bracket she is in. What happened is that Mary’s TSP withdrawal caused an additional $8,500 of her Social Security benefits to be taxable. Although Mary only created an additional $10,000 in total income, her AGI and taxable income increased a total of $18,500, which at her 12 percent marginal rate, generated $2,200 in federal income tax. Thank you, tax torpedo. For more information, including how the IRS determines how much of your Social Security benefit will be taxable, take a look at IRS Publication 915. MARK A. KEEN, CFP®, IS PARTNER, KEEN & POCOCK, AND AN INVESTMENT ADVISER REPRESENTATIVE AND REGISTERED PRINCIPAL OF THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA). SECURITIES AND ADVISORY SERVICES ARE OFFERED THROUGH SFA.
W W W. N A R F E . O R G
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2018
G FUND
F FUND
C FUND
S FUND
I FUND
SEPTEMBER
0.24%
-0.62%
0.57%
-1.76%
0.91%
AUGUST
0.26%
0.67%
3.26%
4.57%
-1.91%
JULY
0.25%
0.04%
3.72%
1.64%
2.45%
YTD
2.12%
-1.48%
10.54%
10.85%
-1.06%
1 YEAR
2.72%
-1.05%
17.88%
16.22%
3.15%
3 YEAR*
2.27%
1.55%
17.33%
16.33%
9.63%
5 YEAR*
2.24%
2.54%
13.99%
11.62%
4.77%
10 YEAR*
2.31%
4.02%
12.01%
12.46%
5.50%
*ANNUALIZED
2018
L INCOME
L 2020
L 2030
L 2040
L 2050
SEPTEMBER
0.21%
0.22%
0.23%
0.22%
0.21%
AUGUST
0.61%
0.80%
1.28%
1.47%
1.65%
JULY
0.79%
1.12%
1.91%
2.21%
2.48%
YTD
2.96%
3.52%
4.96%
5.50%
5.99%
1 YEAR
4.59%
6.02%
8.81%
9.96%
11.01%
3 YEAR*
4.77%
7.28%
10.10%
11.45%
12.69%
5 YEAR*
4.11%
6.00%
7.82%
8.71%
9.47%
10 YEAR*
4.32%
6.64%
8.06%
8.85%
N/A
*ANNUALIZED
RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP (For additional monthly returns, go to www.tsp.gov.) G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)
OPM RETIREMENT CLAIMS PROCESSING STATUS
2017
2018
For the Record
TRADE CONCERN MIXES STOCK RETURNS IN SEPTEMBER
THRIFT SAVINGS PLAN FUND RETURNS
Claims Received
Inventory Monthly FYTD (Steady State Average Processing Average Processing is 13,000) Time in Days Time in Days
AUGUST 7,136 17,125 SEPTEMBER 8,810 16,828 OCTOBER 8,850 18,860 NOVEMBER 5,572 19,294 DECEMBER 5,568 14,515 JANUARY 14,590 20,467 FEBRUARY 13,290 24,225 MARCH 7,767 18,730 APRIL 8,390 17,489 MAY 7,625 18,024 JUNE 9,397 18,198 JULY 8,281 18,334 AUGUST 8,826 17,513
65 62 64 68 60 63 46 49 58 58 65 57 56
67 67 64 66 63 63 59 57 57 58 59 59 58
PLEASE NOTE that this report is new, with the addition of monthly/FYTD processing time in days, to be more in line with the OPM 60-day processing goal. l Source: OPM 60
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.S. stock returns were mixed as concern about the direction of trade policy continued against a backdrop of very strong economic numbers and expectations for solid corporate earnings growth. The C Fund moved modestly higher while the S Fund fell. International stock held gains, boosting the I Fund. The Federal Reserve raised its target interest rate range for the third time this year, noting prospects for the labor market and inflation. Most interest rates were higher, leading to the F Fund’s negative returns. All of the L Funds achieved gains.—BY SEAN MCCAFFREY,
CHIEF INVESTMENT OFFICER, THRIFT SAVINGS PLAN
COUNTDOWN TO COLA
T
he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 0.07 percent in August 2018. To calculate the 2019 cost-of-living adjustment (COLA), the indices of July, August and September 2018 will be averaged and compared with the 2017 third-quarter average of 239.668. The percentage increase determines the COLA. August’s index, 246.336, is up 2.78 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. August’s index is 2.42 percent higher than the December 2017 base index of 240.526. The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes.
MONTH
CPI-W
OCTOBER 2017
240.573
NOVEMBER DECEMBER
Monthly % Change
% Change from 239.668
-0.15
0.38
240.666
0.04
0.42
240.526
-0.06
0.36
JANUARY 2018
241.919
0.58
0.94
FEBRUARY
242.988
0.44
1.39
MARCH
243.463
0.20
1.58
APRIL
244.607
0.47
2.06
MAY
245.770
0.48
2.55
JUNE
246.196
0.17
2.72
JULY
246.155
-0.02
2.71
AUGUST
246.336
0.07
2.78
SEPTEMBER
Donate to NARFE Programs Support Alzheimer’s Research
YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.
WRITE YOUR CHAPTER NUMBER ON CHECK; MAKE IT PAYABLE TO: NARFE-Alzheimer’s Research
Enclosed is my NARFE-Alzheimer’s contribution: $ Every cent that is contributed is used for research. Please circle: Mr. Mrs. Miss Ms. AND MAIL TO: Name: Alzheimer’s Association Address: 225 N. Michigan Ave., 17th Floor City: State: ZIP: Chicago, IL 60601-7633 Chapter Number: Credit Card Information: MasterCard VISA NARFE MEMBERS CONTRIBUTED FOR If you have any questions, write to: Discover AMEX ALZHEIMER’S RESEARCH: $13 Million Fund NATIONAL COMMITTEE CHAIR Card Number: Olivia Williams, 22 Garden Springs Road Expiration Date: (mm)/ (yy) Columbia, SC 29209 *Total as of August 30, 2018 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) EMAIL: oeashf3@bellsouth.net
$12,821,149.30* Alzheimer’s research.
Signature
Join the Silver CIrcle CLIP THIS CONTRIBUTION FORM AND MAIL TO: NARFE Silver Circle 606 N. Washington St. Alexandria, VA 22314
•For a contribution of $25 or more, you will receive a Silver Circle pin, and your name will be listed in narfe magazine with other contributors. •For a contribution of $1,000 or more, your name will be placed on the “Wall of Fame” at NARFE Headquarters.
YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.
/
Enclosed is my Silver Circle contribution: $ ID # (ID # may be found on your narfe magazine label or your NARFE membership card)
Name: Address: City: State: ZIP: Silver Circle contributions are NOT deductible for federal income tax purposes.
INSTALLMENT PLAN Wall of Fame 12-month installment plan
Give to the Scholarship and Disaster Funds
PLEASE MAIL COUPON AND CHECK TO: FEEA 1641 Prince St. Alexandria, VA 22314
/
All donations go to the NARFE General Fund to support NARFE programs and operations.
My check is enclosed
(Please make check payable to NARFE Silver Circle.)
Please charge my credit card Card type MasterCard VISA Discover AMEX Card Number: Expiration Date: (mm)/ (yy) Name: (please print)
Signature
MAKE CHECK PAYABLE TO: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund.
Date
YES!
Date
/
I would like to help with my contribution.
Scholarships are available to children, grandchildren and great-grandchildren of federal civilian retirees and current federal employees who are NARFE members. NARFE-FEEA Disaster Fund NARFE-FEEA Scholarship Fund
Amount: $ Amount: $
Name: Address: City: State: ZIP: To make credit card contributions, visit NARFE Scholarships at www.feea.org/givenarfeschol or NARFE Disaster Relief at www.feea.org/givenarferelief.
/
NARFE News
GET THE MOST OUT OF YOUR BENEFITS
NEW NARFE STAFF JOHANN DECASTRO
has joined NARFE as the new Staff Vice President, Finance and Administration. Johann has more than 28 years accounting/finance experience, with 18 of those years in a management capacity for for-profit and nonprofit organizations. He has succeeded in maximizing net revenue at other organizations by
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driving revenue up and costs down. He has extensive business development experience, as well as proven skills in IT and facility management. He uses a strategic approach and believes in partnering not only with his colleagues on the staff but also boards and committees. His degree in accounting is from the University of the District of Columbia, and has held the CPA credential since 1998. His arrival completes a planned realignment of the organization
The NARFE Federal Benefits Institute is a member-only resource designed to help NARFE members take charge of their federal benefits and guarantee a secure future. To attend the live events, access the on-demand sessions, benefits briefs and other FREE resources visit www.narfe.org/ federalbenefitsinstitute.
into four divisions (Advocacy, Communications, Finance & Administration, and Marketing & Member Resources). He has executive responsibility for IT, budget and finance, member services and support services at NARFE. He will be able to provide increased oversight of those departments and further ensure that those departments are successful in implementing the operational plan to further NARFE’s mission.
2017-18 Silver Circle Donors
A
s of September 12, 2018, NARFE’s Silver Circle donation program stood at $1,584. The program gives members a vehicle to donate to the association beyond the norm. Donors of $25 or more are listed in NARFE Magazine and receive a Silver Circle pin. Donors of $1,000 or more have their names engraved on a Wall of Fame at NARFE Headquarters. Donors from December 16, 2017 to September 12, 2018, are listed here with their state and chapter numbers, if applicable. Arizona: Richard L. Rodenburg, Chapter 2106; Holly A. Williams, Chapter 1400 California: Leslie Ching, Chapter 0065; Elaine C. Deprosse, Chapter 531; Edward L. Matthews; George Pritchard Delaware: Thomas V. Galish, Chapter 1690; Patrick Litle; Paul Sabatini, Chapter 1690 Georgia: Betty L. Goodwin, Chapter 316; Donald Walton Hawaii: Gene C. Armacost, Chapter 1657 Illinois: Joseph L. Bloch, Chapter 1344 Indiana: Hilbert Martin, Chapter 327 Maine: Roland L. Metayer, Chapter 1796 Maryland: James Desantis, Chapter 422; Judith D. Foulke Nevada: Donald N. Babb, Chapter 2167 New Jersey: Tom Woodford, Chapter 718 New Mexico: Charna Lefton; George M. Thomas, Chapter 1381 New York: Norma Alford; Norma Medrano North Carolina: Patrick J. Mogon Oklahoma: James T. Dills, Chapter 130; Lynn Tentou Oregon: Alan D. Rathsam, Chapter 1271 Pennsylvania: Thomas C. Dilger, Chapter 458 ; Theodore Mallick, Chapter 372 Texas: Ben Weiger, Chapter 1201 Tennessee: Walter Adams, Chapter 828 Virginia: John Bankson, Chapter 1159; Thomas Berkey, Chapter 0893; Mr. Bu Jin; Carl Smith Washington: Howard A. Stoneback, Chapter 1404 West Virginia: William Fasching International France: Guy A. Mougel, Chapter 4044 To donate, visit www.narfe.org and click on “Support NARFE.”
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Member Perks
SAVE MONEY WITH NARFE PERKS NARFE appreciates your service, and so do businesses across the country. Whether you are planning your next vacation or planning for retirement, members can save money on everyday purchases, thanks to our Affinity Partners. It’s just one more way we’re able to say “thank you” for being a NARFE member.
INSURANCE
Nationwide 1-855-550-9216 For your love of discounts side. Discover how Nationwide’s suite of solutions can help protect your financial future. Protect what matters to you for less with a member-only discount when you enroll in an suto or power sports policy. Plus, receive an additional discount when you bundle home and auto policies. Protect all sides with Nationwide’s wide range of insurance and financial solutions. Benefit from guidance and support from a company that has been strong and stable for 90 years.
NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed exclusively for NARFE members, plans administered by Mercer Health & Benefits Administration LLC: Group Term Life Insurance, Senior Age Whole Life Insurance, Senior Term Life Insurance, Group Hospital Income Insurance, Hospital Income and ShortTerm Recovery Insurance, and Pet Insurance.
MOVING SERVICES
Bekins Van Lines 800-456-6832 narfe@bekins.com All NARFE members will receive contracted pricing for all interstate shipments. This will apply to packing, transportation and full-value coverage against damages. Please mention you are a NARFE member 70
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MiniMoves 800-300-6683 MiniMoves is America’s only national mover exclusively focused on small shipments; a piece, a room or a full condo. Member discount - $25 off 500 pounds; $50 off larger moves. Use code 1292.
Wheaton World Wide Moving 800-248-7960 narfe@wvlcorp.com At Wheaton, we know interstate relocating is much more than trucks and boxes. Moving is not simply an address change. It’s a life change. Call today and mention you are a NARFE member to start the moving process.
PRODUCTS
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
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. This exclusive online-only savings is only available to new Verizon customers or those upgrading to the Triple Play Package.
TRAVEL
Office Depot and OfficeMax 855-337-6811, extension 12897 www.officediscounts.org/ narfe Office Depot and OfficeMax are one GFD company! NARFE Members can save up to 80% on over 93,000 products. Great for your printing, cleaning and office needs. Shop online or in any Office Depot or OfficeMax store. Enjoy FREE next-day delivery on online orders over $50! Visit www.officediscounts.org/narfe to shop online or print off a FREE Store Purchasing Card or call 855.337.6811 x 12897 to place your order over the phone.
Alamo 800-462-5266 www.alamo.com Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call or visit our website today and reference Contract ID 262544.
Avis Car Rental 800-633-3469 www.avis.com Avis Car Rental is one of the world’s best-known car rental brands with approximately 5,500 locations in more than 165 countries. Call or book your reservation now at Avis.com using the NARFE AWD number A701900.
Budget Car Rental 800-218-7992 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 6,400 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. Choice Hotels brands are: Comfort Inn, Comfort Suites, Sleep Inn, MainStay Suites and more.
National 800-CAR-RENT www.nationalcarrental.com You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation, call National Car Rental at 1-800-CARRENT® and reference Contract ID 5282909. For complete terms and conditions, visit www.narfe.org/ memberperks.
Wyndham Hotel Group 877-670-7088
HearUSA www.hearusa.com/narfe
NARFE members receive up to 20% off the “Best Available Rate” at participating Wyndham Hotel Group locations worldwide. To receive discount, book online or call our special benefits hotline at 1-800-364-6176 and give the agent your special discount ID number, 8000002694, at time of booking. For online bookings, your discount ID will be automatically entered and your discount displayed.
HearUSA: The Nation’s Most Trusted Name in Hearing Care. Choose from 250+ hearing aids with $0 Co-Pay for Many Plans. Wireless. Bluetooth. Smartphone Compatible. Nearly Invisible. Risk-Free 60-Day Trial. Free Follow-Up Care. Free 3-Year Warranty. Call 1-855845-2706 to see if you qualify for 2 FREE hearing aids.
Wyndham Extra Holidays 800-428-1932 www.extraholidays.com Excellent service and the finest comforts are standards you can always rely on with Wyndham Extra Holidays. With more spacious floor plans than a regular hotel, you can enjoy a One-, Two- or Three-Bedroom suite with separate living areas and partial or fully equipped kitchens. Please use promo code 8000002694 when calling or booking online.
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.
WELLNESS
Brookdale Senior Living 571-483-1265 www.Brookdale.com As the largest operator of senior living communities in the U.S., Brookdale has over 1,000 locations all across the country. NARFE Members are eligible for 7.5% discounts at Brookdale Independent Living, Assisted Living and Memory Care communities and 10% discounts on Brookdale Private Duty Home Care. For new move-ins only.
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. For new move-ins 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 these additional Member Perks on the NARFE website for more details!
FEDERAL EMPLOYEE PROGRAM ADMINISTRATOR
W W W. N A R F E . O R G
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The Way We Worked
SPACE EXPLORATION
This 1962 photo shows astronaut Scott Carpenter looking into the Aurora 7 spacecraft. On May 24, 1962, Carpenter orbited the earth three times while performing a number of scientific experiments. The mission took approximately five hours, making him the fourth American in space and the second to orbit the earth. Manned missions today are much longer, such as those to the International Space Station (ISS), which typically last about six months. There have been more than 50 ISS missions since November 2000, and the ISS has been in orbit for almost 20 years. The continuing operation of these missions is a testament to how spacecraft technology has evolved in the past 60 years. PHOTO from the Records of the National Aeronautics and Space Administration, National Archives, courtesy of the National Archives History Office; in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. To join, visit www.shfg.org.
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DID YOU KNOW? In November 1998, the first piece of the International Space Station (ISS) was launched into orbit. Two years later, the first ISS crew was launched into space on November 2, 2000. The space station is as large as two Boeing 747 jetliners and can accommodate six crew members plus visitors. It orbits the Earth every 90 minutes and has an average altitude of approximately 250 miles. ISS missions last on average for six months with three to six crew members on board at all times. On the web: www.nasa.gov.
Attn: Federal Employees and Retirees
BETTER HEARING BEGINS HERE
Take advantage of your $2,500 hearing benefit. Call Your Hearing Network at 877-696-5335 Federal Employees and Retirees may be eligible for a pair of Oticon OpnTM 3 hearing aids for $0 out-of-pocket.*
The first hearing device proven to make it easier on the brain. Your Hearing Network gives you easy access to a network of carefully screened hearing care professionals and a wide selection of digital hearing aids.
Your brain works at incredible speeds to process sound. Finally there’s a hearing device that can keep up. Only Oticon Opn uses BrainHearingTM 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.
* 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.
BLACK (01)
WINE (14)
Rugged, Manly Style! Warm plush polyester sherpa lining extends into the drawstring hood, full zip front, banded bottom & cuffs. Plenty of pockets! Sleeves are lined in a smooth polyester for easy on and off. Machine wash & dry polyester. Order now!
NAVY (03)
®
®
Haband® PO Box 8, Warren, PA 16366-0008 Card # __________________________Exp.:___/____ Mr. Mrs. Ms. _______________________________ Address _______________________Apt. # ________ City & State ______________________Zip_________ Phone ______________________________________ Email _______________________________________
NEW! GREEN LEAF (BF)
CHARCOAL (07)
7MC –37Ø86 SIZE? MANY?
Regular Sizes: S(34-36) M(38-40) L(42-44) XL(46-48) Big Men (just $5 more each):
2XL(50-52) 3XL(54-56) 4XL(58-60) 5XL(62-64) 6XL(66-68) Check for Protection Plus! (X96) Expedites replacement of items lost in transit. Add $2.95 to protect your entire order.
WINE 14 Ø1 BLACK Ø3 NAVY 5A MEDIUM BLUE BF GREEN LEAF Ø7 CHARCOAL
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. Satisfaction Guaranteed or Full Refund of merchandise purchase price up to 90 days after receipt.
For Faster Service Call: 1-800-543-4810 or Visit www.Haband.com
17647906
MEDIUM BLUE (5A)
Imported
NEW!
I enclose $________ purchase price, and only $6.99 shipping & handling for my entire order. Please add applicable state & local sales tax for the following states: CA, CO, FL, GA, LA, MA, ME, MN, NJ, PA, RI, VT, WA, WI, & WV. WHAT HOW