NARFE’s Advocacy Positions for the 118th Congress

NARFE’s Advocacy Positions for 2023-24 provides an extensive and specific enumeration of NARFE’s member-endorsed positions on legislative and administrative policies. In pursuing these, NARFE will defend the earned pay and benefits of federal and postal civilian employees and retirees. NARFE advocacy primarily focuses on the following priorities: • Defend and advance the earned pay and benefits of America’s current and retired civil servants. • Protect the viability, stability and standards of service of established federal government functions. • Promote understanding of, and trust in, the government. Positions followed by a star H require legislation. New language appears in italics.

✔Cost-of-living adjustments (COLAs) for all federally administered retirement programs on a regular annual schedule, computed on the same basis and paid at the same time, regardless of age and/or income level. ✔COLAs determined by a Consumer Price Index (CPI) based on the objective analyses of Bureau of Labor Statistics (BLS) professionals. ✔Changing the CPI-W (Consumer Price

Index for Urban Wage Earners and Clerical

Workers) to the CPI-E (Consumer Price

Index for the Elderly) as the standard for determining the annual COLA. H ✔Providing Federal Employees Retirement

System (FERS) annuitants with an annual

COLA equal to the relevant CPI increase. H ✔Extending equitable treatment to federal retirement annuities in legislation increasing

Social Security benefits. H ✔Legislation to provide equitable tax treatment of federal government retirement benefits comparable with Social Security. H ✔Equitable relief for federal employees and retirees in any legislation providing widespread emergency relief or economic stimulus. H ✔Legislation to repeal the increase in pension contributions of new federal employees, enacted in February 2012 and December 2013. H ✔Legislation to temporarily suspend required minimum distributions (RMDs) from qualified retirement plans, such as the Thrift Savings

Plan (TSP), during significant national economic downturns. H ✔Ensuring the Federal Retirement Thrift

Investment Board (FRTIB) discharges its responsibilities solely in the best interests of participants and beneficiaries of the TSP. ✔Legislation to conform the TSP regulations to

Internal Revenue Service (IRS) regulations on

other qualified retirement savings plans, such as 401(k) plans. H ✔Legislation to eliminate required minimum distributions (RMDs) from Roth 401(k)-type accounts, such as Roth TSP accounts. H ✔Legislation to permit tax-free, qualified charitable distributions (QCDs) from employer-sponsored retirement accounts, and to allow those QCDs to satisfy RMD requirements. H ✔Legislation or regulations that require financial advisors to provide advice regarding retirement investments that is in their clients’ best interests, not their own. ✔Legislation to provide retiring federal employees the option of electing and paying the actuarial cost of additional survivor annuity amounts in 5 percent increments, up to 75 percent of an unreduced annuity. H ✔Legislation that would allow the recalculation of retirement annuities for federal employees who have retired since 1994 and who worked in

Hawaii, Alaska or the U.S. Territories and who pay the contributions to the Civil Service Retirement and Disability Fund (CSRDF), and income taxes that they would have paid had locality pay been available to them prior to their retirement. H ✔Full public disclosure of the fiscal stability and financial obligations of the CSRDF. ✔Measures to ensure accurate, reliable, and timely customer service from the Retirement Services division of the Office of Personnel Management (OPM), including congressional oversight to ensure transparency, funding to ensure adequate resources, and efforts to modernize technology and improve processes.

✘ Across-the-board reductions in COLAs not required in all federally administered retirement programs. ✘ Using the Chained CPI to determine annual

COLAs. ✘ Any action that erodes the solvency of the CSRDF. ✘ Increasing federal employee contributions towards retirement without any corresponding benefit increase.

NARFE is guided by the following six Social Security principles to provide: 1. A benefit people can depend on; 2.Financial security for the disabled, survivors and dependents (i.e., social insurance); 3.Universal and fair coverage; 4.Deliberate redistribution of benefits to lower income beneficiaries; 5.Efficient administration of the program (less than 1 percent overhead costs); and 6.Full cost-of-living adjustments (COLAs).

✔Repeal or reform of the Social Security Government

Pension Offset (GPO) and the Windfall Elimination

Provision (WEP). H ✔Legislation that would require the Social Security

Administration to report annually the amount of

WEP penalty to affected individuals. H ✔Legislation regarding Social Security that improves the solvency of the trust fund and increases benefits for all beneficiaries. H ✔Raising the cap on Social Security payroll taxes to improve the solvency of the Trust Fund. H ✔Indexing the income threshold for taxation of

Social Security benefits. H

✘ Investment of the Social Security reserves in investments other than Treasury securities. ✘ Replacing any portion of Social Security benefits with private individual accounts.

✔A merit-based civil service secured through competitive hiring processes and due process protections. ✔Implementation of federal employee pay parity as reflected in the Federal Employees Pay

Comparability Act of 1990 (P.L. 101-509).

✔Sufficient pay levels to attract and retain a federal workforce with the necessary knowledge, skills and abilities to carry out their jobs and fulfill agency missions. ✔Legislation that would afford federal employees serving in combat zones the same tax treatment as their military counterparts. H ✔Legislation to provide reasonable and equitable compensation to federal employees, retirees or their families who face significant risks to life and limb and/or suffer adverse consequences due to a service-related illness, injury, or death. H ✔Providing all federal employees with paid family and medical leave, in addition to paid parental leave. H

✘ Proposals that would privatize inherently governmental functions. ✘ Legislation to arbitrarily decrease Federal

Employees’ Compensation Act (FECA) benefits. ✘ Policies on contracting out of federal jobs that put employees at a disadvantage in the competitive process. ✘ Contracting out the processing and maintenance of federal personnel records.

The Federal Employees Health Benefits (FEHB) Program is the nation’s most efficiently administered and cost-effective employersponsored health insurance plan, providing coverage to employees, retirees and their spouses and dependents. As such, NARFE will continue to actively participate in discussions with the OPM regarding premiums, coverage, terms, conditions and marketing of FEHB Program plans.

✔Providing incentives for enrollment in Medicare

Parts A and B for those eligible, including improved coordination of benefits that would reduce out-of-pocket health care costs, and reimbursement for Part B premiums, providing premium relief for those enrolled in Part B. ✔Legislation to amend Section 125 of the tax code to allow federal retirees and survivors to pay: 1. Their share of FEHB and other employersponsored health insurance premiums with pretax annuities; H and 2.Health care costs not covered by traditional health insurance and child and adult dependent care with pretax annuities deposited by annuitants in Flexible Spending

Accounts (FSAs). H ✔Legislation and efforts by OPM and FEHB plans to contain FEHB costs, including initiatives to rein in prescription drug expenses, such as ensuring access by FEHB plans to any prescription drug pricing negotiated by the

Department of Health and Human Services for the Medicare program. H

✘ Reductions in government contributions toward

FEHB premiums. ✘ Adding conditions, such as a requirement to enroll in Medicare Part B, to the continued receipt of FEHB benefits for current retirees and their spouses. ✘ Forcing participants into Health Savings

Accounts, Medicare Savings Accounts,

Medical Savings Accounts, “customer-driven,”

“consumer-driven” or “patient-directed” plans in the FEHB. ✘ Broadening participation in FEHB, unless separate risk pools are created. ✘ Requiring federal agencies to prefund the government/employer’s share of postretirement FEHB premiums for their current employees. ✘ Risk segmentation of FEHB participants based on age or Medicare enrollment.

✔Protecting Medicare’s guarantee of basic health security for older Americans at affordable and predictable prices. ✔Applying the effect of the hold harmless provision to all Medicare beneficiaries permanently. H ✔Preserving the current Medicare fee-for-service program, including the ability to select the physician of your choice. ✔Repeal of means-testing of Medicare premiums. H ✔Eliminating or reducing the penalty imposed on those who do not enroll in Medicare Part B at the time they become eligible. H

✔Enhancing Medicare prescription drug coverage, including authority for the federal government to negotiate drug prices for the entire program; simplify and stabilize coverage; and provide equal coverage throughout the United States and its territories. H

✘ Means-testing cost-sharing requirements. ✘ Increasing the Medicare eligibility age. ✘ Proposals that would give private Medicare plans an unfair competitive advantage over the current

Medicare fee-for-service program and undermine the present program’s ability to share health care costs over a wide community of coverage. ✘ Proposals that limit the government’s share of

Medicare premiums through a formula that does not accurately reflect the costs of providing health care to beneficiaries. ✘ Changes to Medicare’s fee-for-service model that undermine patient outcomes and threaten the solvency of the program.

✔The integrity and affordability of the Federal Long

Term Care Insurance Program (FLTCIP). ✔Legislation or administrative action by the Office of

Personnel Management (OPM) that would provide

FLTCIP enrollees with the option to receive a partial refund of their premiums as an alternative to accepting a premium increase. ✔Proposals to develop and coordinate a comprehensive long-term care policy that would include public and private initiatives that address financing, choice, and quality service. H ✔ Tax relief for the purchase of long-term care insurance, family caregiving and other long-term care expenses. H ✔Proposals that would help individuals who cannot afford long-term care insurance or have a need for long-term care to receive such services without impoverishing themselves or their spouses. H ✔Nursing home reform, including efforts to ensure that long-term care facilities are adequately staffed with experienced professionals in the medical disciplines of gerontology and nursing, and that such individuals continue to receive training and are adequately compensated. H ✔The guarantee of long-term care benefits for individuals presently eligible for Medicaid, adequate state and federal contributions to Medicaid to finance program needs, and standards of care and safety that all providers must follow in order to receive reimbursement.

✘ Further limitations on, and supports easing of, asset rules which prevent severely disabled persons from qualifying and receiving Medicaid long-term care benefits. H

✔Legislation to maintain quality postal service standards, including to-the-door delivery at traditional levels. H ✔Legislation to keep small post offices open throughout the United States. H ✔Legislation to allow the Office of Personnel

Management to make payments for any refund due to the USPS from the CSRDF, on the condition that such payments would not result in the reduction of federal annuities paid to retirees and survivors. H

✔Legislation permitting drugs made in the United

States or other industrialized countries, and exported to third-party industrialized countries, to be reimported, or imported, to the United States, and preventing pharmaceutical manufacturers from limiting the sale of drugs to other countries for the purpose of discouraging reimportation. H ✔Legislation that would provide comprehensive patient protections to consumers enrolled in health plans regulated by federal and state law, and would also allow such individuals to sue their plans for wrongful denials of care. H ✔The reauthorization of, and adequate annual appropriations for, the Older Americans Act to ensure the continuation and enhancement of community services for senior citizens of all income levels. H ✔Providing residents of the District of Columbia voting representation in Congress. H ✔Campaign finance reform legislation that would increase the effect of small-dollar individual contributions on political campaigns and grassroots-based political action committees relative to high-dollar individual contributions. H

BY JENN RAFAEL

Director, Communications and Marketing

NARFE asked, and you answered. In January 2022, a survey was mailed to all NARFE members asking for feedback on NARFE programs, resources and priorities.

“Federal employees play an important role in keeping the country running effectively, and federal annuitants deserve to feel secure in their retirement,” former NARFE National President Ken Thomas wrote in a letter introducing the survey. “As a member of the federal community, NARFE needs your help in gaining a better understanding of what is important to YOU.”

NARFE may use survey results to better tailor Federal Benefits Institute resources or gauge interest in future participation in advocacy initiatives.

Some 6,100 completed surveys were returned by mail to NARFE, with another 137 responses recorded online.

The survey was anonymous. Not all respondents answered every question; total responses for individual questions may not match the number of total respondents. Views of respondents do not necessarily represent those of the wider membership.

NARFE is grateful to the more than 6,000 members who took the time to answer the survey. Here’s a look at what members told NARFE about what matters to them:

71.99% (4,429)

13.77% (847)

11.93% (734)

1.38% (85)

0.55% (34)

0.21% (13)

Most NARFE members who responded to the survey are retired public servants.

More than 6,000 members provided feedback on NARFE’s priorities: • Nearly half of respondents, 2,536, said their

No. 1 priority for NARFE was “Protecting your earned federal benefits—pensions, health insurance—from cuts.”

“NARFE’s advocacy efforts over the past several years have focused on defeating proposals that threatened to cut billions from earned federal benefits, and we’ll continue to do so if and when these wrongheaded proposals return,” said John

Hatton, NARFE’s staff vice president for policy and programs. • Another 1,542 respondents said their top priority was “Accurate cost-of-living adjustment (COLA) calculations.”

“For years, NARFE has urged Congress to address the inequity of COLAs that don’t keep up with rising health care costs by passing legislation requiring the BLS to calculate COLAs based on the consumer price index for the elderly (CPI-E) instead of the consumer price index for workers (CPI-W),” former NARFE National

President Ken Thomas said in October 2022. He added: “We also continue to push for full COLAs for FERS retirees, who receive 1% less than the increase in consumer prices when inflation is high.” • A quarter of respondents, 1,242, said their top priority for NARFE was to work to “Repeal or reform of the Government

Pension Offset (GPO) and Windfall

Elimination Provision (WEP).”

“Both the WEP and the GPO have unfairly penalized federal retirees for decades,”

Hatton said. “In some cases, GPO completely eliminates Social Security survivor benefits for widows.” • Nearly 10%, 488, wanted NARFE to focus on “Protecting all employee and retiree benefits during the debate on legislation to reform the Postal Service.” The Postal

Service Reform Act of 2022, which was signed into law April 7, 2022, ended the

overly burdensome mandate to prefund future postal retiree health benefits, a requirement NARFE long worked to repeal.

And, thanks in part to NARFE’s advocacy,

“this law preserves choice for current postal retirees regarding Medicare Part B enrollment and protects all postal and federal employees and retirees from unintended premium increases resulting from the creation of the Postal Service Health Benefits program,” Thomas said in April 2022. • A small number of respondents, 119, said their No. 1 issue was “Market-based pay raises for federal employees.” The 4.6% average federal pay increase for 2023 tracks with increases in private-sector and military pay.

“Keeping up with private-sector pay growth is essential to maintaining the federal government’s ability to recruit and retain a highly qualified and effective workforce,”

Thomas said of the increase. “While federal pay rates will still lag private-sector rates, this raise ensures they will not fall further behind.”

90.11% (4,740)

9.89% (520)

More than 90% of those who answered Question 3 said NARFE is adequately addressing federal employees’ and retirees’ concerns in Washington.

NARFE has extensive experience doing just that: Since NARFE’s founding in 1921, the association’s mission has been to defend and advance the earned pay and benefits of America’s civil servants. Supported by thousands of grassroots activists, NARFE is a leading force in Washington, working tirelessly on behalf of the federal community.

More than 1,000 also shared additional comments, urging action on specific issues or thanking NARFE for representing their interests. One member shared they “really appreciate your continued involvement to protect our benefits!” Another wrote, “We need to deal with the high cost of medications. Even with insurance coverage, cost is ridiculous. Keep up the good work!” And one member shared that “the GPO and WEP were the most unfair cut in my retirement income. Hope they will be REPEALED for future retirees.”

The only organization dedicated solely to protecting and preserving the benefits of all federal workers and retirees, NARFE informs you of any developments and proposals that affect your compensation, retirement and health benefits, AND provides clear answers to your questions. Who Should Join NARFE?

If your future security is tied to federal retirement benefits—federal retirees, current employees, spouses and individual survivors—you should join NARFE. • Access the NARFE Federal Benefits

Institute for powerful resources to help you fully understand and manage your benefits. • Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits. • Get NARFE Magazine with news and insights for the federal community. • Save time, hassle and money with

NARFE Perks. • The opportunity to get involved at the local level by joining a chapter in your area.

q YES. I want to join NARFE for the

q Mr. q Mrs. q Miss q Ms.

Full Name

Street Address

Apt./Unit

City State ZIP

Phone

Email

q Active Federal Employee q Active Federal Employee Spouse q Annuitant q Annuitant Spouse q Survivor Annuitant

q Please enroll my spouse

Spouse’s Full Name

Spouse’s Email

1. Complete this application and mail with your payment

to NARFE Member Services / 606 N Washington St /

Alexandria, VA 22314-1914. 2. Join online at www.NARFE.org.

3. Call 800-456-8410, Monday through Friday, 8 a.m. to 5 p.m. ET.

1Q6

q Check, Money Order or Bill Pay (Payable to NARFE) q Bill me (NARFE membership will start when payment is received.) q Charge my: q MasterCard q VISA q Discover q AMEX

___________________________________________ Card No.

Expiration Date _____ /________

mm yyyy

___________________________________________ Name on Card

___________________________________________ Signature

___________________________________________ Date

$48 Annual Dues X ___________ = ___________ Per Person # Enrolling Total Dues Dues payments are not deductible as charitable contributions for federal income tax purposes.

LOOKING TO MEET OTHERS in the federal community and participate in NARFE at a local level? Call 800-456-8410 to learn about a NARFE chapter in your area. Would you like to receive a FREE one-year chapter membership? Choose one: q Chapter closest to home OR q Chapter #____________

MAY WE THANK SOMEONE? Did someone introduce you to NARFE? Please provide their Name and Member ID.

___________________________________________ Recruiter’s Name

___________________________________________ Recruiter’s Membership ID

NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties. (01/21)

Nearly 4,000 members provided feedback on what programs and resources interest them: • Six in 10, 2,415, said they are interested in learning more about NARFE’s federal employee/ retiree benefits webinars and information.

Webinars are exclusively available to NARFE members. The schedule of upcoming webinars is available online at www.narfe.org/webinars, and archived webinars can be accessed on demand through a link on that page. • Half of respondents, 2,032, said they wanted more details on FEHB and other information related to federal health benefits. Thousands of members tuned in to NARFE’s Open

Season webinars and tens of thousands more accessed NARFE’s Federal Benefits Open

Season Resources webpage to help them make coverage decisions for 2023. • More than 40%, 1,681, said they most want to learn more about the NARFE Perks discount program; the list of affinity partners and details for each perk can be found at the back of every issue of NARFE Magazine and online at www. narfe.org/perks. • More than a third, 1,420, expressed the most interest in learning more about NARFE member resources. One of the best places to learn about all NARFE has to offer is on FEDHub, NARFE’s online community, where members can make connections and ask and answer questions. • Some 30% of respondents, 1,217, said they are most interested in getting financial planning information related to federal retirement savings and taxes. NARFE members have access to a special resource through our partnership with Keen &

Pocock, which offers services customized for federal employees and retirees in several key areas, including retirement planning, investment analysis and financial planning.

NARFE members receive a free 30-minute session to discuss financial goals and get $250 off the regular fee for Keen & Pocock’s financial planning program. Visit www. narfe.org/keen-pocock to get started. • More than 15%, 632, said they were interested in learning more about NARFE advocacy. Members can take action by contacting their lawmakers, stay abreast of important updates about NARFE’s advocacy activity and ways to make your voice heard in Washington, and learn about NARFE-PAC at www.narfe.org/advocacy. • Finally, about 8% of respondents, 323, wanted to hear more about the FEDHub online member community. NARFE designed FEDHub to support members on their federal journey, leveraging the knowledge and value of our entire community. To get started today, visit fedhub. narfe.org/quick-start-guide.

Being a NARFE member has many advantages, and we wanted to hear what one resource or topic was most important to each respondent. Here’s what they told us:

• More than half of respondents, 2,554, said the NARFE-provided resource they were most interested in was “Access to the latest news and information to keep me current on issues affecting me as a federal employee/ retiree.” Members should update their records to include an email address so they can receive NARFE NewsLine by email each week.

NARFE’s Daily News Clips provides a roundup of news important to feds every weekday, as well; sign up at www.narfe.org/clips. • Nearly a quarter, 866, were most motivated by

“Strengthening NARFE’s advocacy efforts in

Washington through my membership.” One of the

best ways you can add to NARFE’s impact is by sharing your story with your lawmakers. Learn how at www.narfe.org/grassroots. • More than 15% of respondents, 637, said the

NARFE resource that interested them the most was “In-depth analysis and information about Open Season and other changes to the

FEHB program to help me make good decisions about my federal health benefits and coverage.”

Every year, NARFE produces informative Open

Season webinars and gathers resources online and in NARFE Magazine to help members make the best possible coverage decisions. Find benefits webinars on demand at www.narfe.org/ webinar-archive/. • More than 10%, 433, chose “Expert advice about taxes, the Thrift Savings Plan, etc. to help me manage my federal benefits as part of an effective financial plan” as the NARFE resource that interested them the most.

Turn to NARFE’s Federal Benefits Institute webinars for information you can use to firm up your financial foundation. Find them at www.narfe.org/webinar-archive/.

The remaining respondents expressed the most interest in learning more about “Saving money on travel, health services, insurance through NARFE Perks” and “Connecting with other federal employees and/or retirees,” such as on FEDHub. Visit www.narfe.org/perks or turn to Page 46 for details on this useful member benefit. And if you haven’t checked out FEDHub yet, what are you waiting for? Visit fedhub.narfe.org/quick-start-guide to get started.

Finally, NARFE provided respondents the opportunity to chime in on what matters to them most, so the association can improve and enhance services for you, our members. Many told us they want more resources devoted to a specific advocacy or benefits issue. Others just wanted to let us know we’re doing a good job. Here’s a sample of some of the hundreds of responses to the last question:

• “I am quite pleased with the articles in the magazine and NARFE-PAC activities on behalf of federal retirees.” • “All my years as a federal employee, I felt

NARFE has always worked to ensure retirees and current employees receive all the benefits they have earned. Please keep up the good work you have always done for us!!” • “You are doing an excellent job! Your service and help to us is wonderful. Thank you!” • “An individual like me has no power with our

Congressman unless I give them a million dollars for their campaign. I have contacted both Colorado Senators and not one of them will answer my questions about the Medicare

Part B penalty. I think NARFE is very important because you can get their attention.” • “Fight harder to change the basis on which

COLAs are calculated to take seniors better into account.” • “Continue the fight for the protection of our earned benefits as promised to us when we began our careers with the federal government.” • “Just be aware we all need the help you provide.” • “Doing the best job you can! Thank you for your service!” • “Watch our politicians, keep them honest. Keep us informed. Fight for our earned benefits.”