December 2010 by NARFE

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For Active and Retired Federal Employees

RETIREMENT LIFE

DECEMBER 2010, Volume 86, Number 12

LEGISLATIVE REPORT 8 12 14 16

$250 Payment Proposed in Lieu of COLA

Cover design by Jim Richards

Debt Panel Report Due December 1 Federal Workers Overpaid? No! Civics 101: Meet the Elect

COLUMNS 6 Message From the National President

COVER STORY

18 Managing Money

Tough Pills to Swallow. Increases in premiums and out-of-pocket expenses in the Federal Employees Health Benefits Program, plus a rise in Medicare Part B premiums, are tough pills to swallow in a year without a cost-of-living increase for federal retirees. Here is the third and final installment of NARFE’s authoritative Open Season Report.

22 Alzheimer’s Update

20 Live Well 56 Vice President’s Views 56 From the Secretary’s Desk

57 Treasurer’s Report

SPECIAL SECTION 62 NARFE Scholarship

DEPARTMENTS 50 58 61 66

Questions & Answers NARFE News Out & About For the Record: TSP Investments

visit us online at www.narfe.org

Winners

NARFE Resources NARFE-PAC Coupon . . . . . . . .16 MembershipApplication . . . . . .49 Alzheimer’s Coupon . . . . . . . . .61 NARFE Member Perks . . . . . . .64

NATIONAL OFFICERS JOSEPH A. BEAUDOIN, President natpres@narfe.org Editor Margaret M. Carter Assistant Editor Donna J. St. John Graphic Designer Beth Bedard Contributing Designers Charlene Gridley Jim Richards Editorial Board: Joseph A. Beaudoin Paul H. Carew Elaine Hughes Charles W. Saylor Editorial Office NARFE, Attn: NARFE magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 E-mail: rl@narfe.org Advertising Sales Warren Berger Media People Inc. 122 East 42nd Street, Suite 725 New York, NY 10168 212-779-7172, ext. 223 E-mail: wberger@mediapeople.com National Headquarters NARFE Telephones Open 8 a.m.-4:45 p.m. (ET) Monday-Friday Telephone: 703-838-7760 Fax: 703-838-7785 E-mail: hq@narfe.org Toll-free phone numbers (specific use only) Member Records: 800-456-8410 Recruitment & Retention: 800-627-3394 Legislative Hotline: 877-217-8234 Web site: www.narfe.org The Association, since July 1970, has been classified by the IRS as a tax exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

NARFE 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-NEWSLINEÂŽ service at 866-504-7300 or go to www.nfb newsline.org. On Tape: Issues of NARFE magazine are also available on cassette through the National Library Service for the Blind and Physically Handicapped. To find out about availability in your area, call 800-424-8567 and ask for the Reference Section.

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

REGIONAL VICE PRESIDENTS REGION I Gilbert W. Blaisdell (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) 3 Larnards Court Amesbury, MA 01913-3309 Tel: 978-388-1830 E-mail: narf1568@comcast.net REGION II Ronald P. Bowers (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) 404 Kilree Road, #301 Timonium, MD 21093-7599 Tel: 410-308-0420 E-mail: narferbowers@msn.com REGION III Donald Stewart (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) 531 Sevilla Ave. Coral Gables, FL 33134-5714 Tel: 305-442-6388 E-mail: dejs33149@aol.com REGION IV Paul E. Johnson (Illinois, Indiana, Michigan, Ohio and Wisconsin) P.O. Box 234, 7183 Main St. Wadesville, IN 47638-0234 Tel: 812-306-5137 Fax: 812-673-4989 E-mail: pejohnson@tds.net REGION V Richard G. Thissen (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) P. O. Box 485 Lake Ozark, MO 65049-0485 Tel: 573-365-5679 Fax: 573-964-5074 E-mail: rthissen99@msn.com

REGION VI Jerome S. Smith (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) 5900 Raleigh Drive Tyler, TX 75703-5636 Tel: 903-534-5849 E-mail: retiredjer@aol.com REGION VII Betty Lucero-Turner (Arizona, Colorado, New Mexico, Utah and Wyoming) 4437 Turnberry Crescent Pueblo, CO 81001-1175 Tel: 719-583-0910 E-mail: blturner2311@aol.com REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) 106 Cottonwood Drive Vallejo, CA 94591-5659 Tel: 707-644-7565 Fax: 707-644-5019 E-mail: hlz17@aol.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) 7450 Illahee Road, NE Bremerton, WA 98311-9431 Tel: 360-692-9741 Fax: 360-662-0384 E-mail: lannyjean@comcast.net REGION X William F. Martin (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) 294 Tyler Point Lane Bumpass, VA 23024-4633 Tel: 540-872-3345 Fax: 540-872-3445 E-mail: narfe2065@hughes.net

Volume 86, Number 12. NARFE (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria,VA 22314. Periodicals postage paid at Alexandria,VA, and additional mailing offices. Members: Annual dues includes subscription. Non-member subscription rate $33.Postmaster:Send address change to: NARFE Attn:Member Records,NARFE 606 N.Washington St.,Alexandria,VA 22314.To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts,although every reasonable precaution is taken.All submissions become the property of NARFE. Contents of this magazine are copyrighted ÂŠ 2010. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in NARFE, but at the same time we will not undertake to guarantee the reliability of our advertisers.

DECEMBER 2010 | NARFE

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A Message From the National President

The Benefits of Dues Withholding

ost members know by now that delegates at the National Convention this summer voted (with 72.5 percent in the affirmative) to increase our national dues from $29 to $40. I believe that delegates correctly realized that NARFE needs the additional money in order to continue fighting the battle to protect the earned benefits of federal employees and retirees. I realize that some members may have difficulty paying the dues increase because 2011 will be the second year in a row that retirees will not receive a cost-of-living adjustment. Our Federal Employees Health Benefits Program premiums also will increase an average of 7.3 percent. But let me suggest a way to reduce the cost of your dues while at the same time helping NARFE Headquarters save money: Sign up for dues withholding. For those of you who pay your dues annually (which will be $40 plus chapter dues after January 1, 2011), signing up now for dues withholding will save you $6. Your monthly cost with dues withholding will be $2.83 + 1/12th of your chapter dues. For example, if your chapter dues are $10, the Office of Personnel Management will deduct $3.66 per month from your annuity. (Note: Active federal workers are not eligible for dues withholding.) Not only will you save $6 a year when you sign up for dues withholding, but NARFE also will save in mailing costs (by not having to mail you an annual statement) and processing fees. It’s a win-win proposition at a time when NARFE and our members are looking for ways to save. No matter the amount of your dues, NARFE is still the best bargain around. If you, your spouse or survivor continue to receive your annuity and health benefits for 20 or more years, your retirement package could be worth hun-

dreds of thousands of dollars – certainly worth the 11 cents per day in annual NARFE dues to support our efforts on your behalf. We have been very successful during the past two decades in protecting your benefits – they have not been reduced or eliminated. However, with the so-called Debt Commission looking at every possible way to reduce the deficit, it would not surprise me if the commission includes one or more proposals to reduce our earned benefits in its report due by December 1. Now is the time to renew your membership and recruit new members. The stronger we are, the more clout we have on Capitol Hill. We will continue to work with our coalition partners, as well as look for other groups to partner with, to persuade Congress to leave our earned benefits alone. I know you have heard this before from many sources, but I will state it again: There is strength in numbers, and your membership is extremely important at this time. With more than 300,000 members, our voice is still strong. But we need all of you to renew your memberships so that we can remain strong. Please consider signing up for dues withholding in 2011. Save yourself, and NARFE, some money. As this issue of NARFE magazine is due to arrive in late November, let me wish you a Happy Thanksgiving, and a safe and happy holiday season. We all have a lot to be thankful for and, as your president, I appreciate all that you have done for NARFE and for me personally during the past year. I’m looking forward to another great year in 2011 working with you and for you.

DUES WITHHOLDING is a win-win proposition at a time when NARFE and our members are looking for ways to save.

Joseph A. Beaudoin natpres@narfe.org

DECEMBER 2010 | NARFE

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LEGISLATIVE REPORT

$250 Payment Proposed ell Congress: In Lieu of COLA TDon’t Leave

or the second time since Social Security started granting

automatic cost-of-living adjustments (COLAs) in 1975, Social Security recipients and federal civilian and military annuitants will not receive an automatic COLA in 2011.

There was no automatic COLA in 2010 either, and, despite support from President Obama for a flat $250 payment, Congress failed to enact the request.

PAYMENT IN LIEU OF COLA House Speaker Nancy Pelosi, D-CA, announced October 14 that, when Congress reconvenes for its lame-duck session after the general election, the House will consider legislation that would provide a $250 payment to Social Security recipients, veterans and individuals with disabilities (recipients of disability insurance under Social Security). NARFE fears that more than one million federal, state and local government retirees who are not eligible to receive Social Security may not receive equivalent relief under the House legislation. For that reason, NARFE issued an Action Alert on October 15 for all NARFE members – even individuals who are Social Security-eligible – urging them to contact their lawmakers and ask them to provide relief to retired public service employees equivalent to the $250 payment that Social Security beneficiaries would receive.

Feds Out! ■ A recent poll by The

Washington Post found that 52 percent of Americans think most federal government employees are overpaid;9 percent think they are underpaid. ■ The Washington Post poll also

For the latest information on this legislation and NARFE’s Action Alert, access the NARFE Legislative Hotline through the NARFE Web site at www.narfe.org. You also can add your e-mail address to your membership record by calling 800-456-8410 so you can receive these updates automatically.

WHY THERE IS NO COLA To calculate COLAs, the Bureau of Labor Statistics (BLS) measures the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) between the third quarter of one calendar year and the third quarter of the next year. In 2008, oil and gas prices spiked, resulting in a significant 5.8-percent increase, which was granted in January 2009. But with the plunge in the economy, overall prices fell dramatically, and, to date, the price level has not reached its 2008 high of 215.5. Until the index surpasses

found that,of those surveyed, only 35 percent said they had contact with an employee of a federal agency.However,three out of four of those respondents said it was a positive experience. ■ A recent Washington

Post/Kaiser Family Foundation/Harvard poll found that 82 percent of respondents believe that the federal government had a lot of or some impact on their daily life. The majority of that group felt that it was a negative impact.

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

DECEMBER 2010 | NARFE

Legislative Report that figure, the law provides for no automatic COLA. For some federal annuitants living on fixed incomes, no COLA means that there is no way to supplement the low returns from traditional senior investment vehicles, such as bonds and money market funds. Nor does it relieve the increase in health care costs, as average premiums for Federal Employees Health Benefits Program plans go up more than 7 percent.

SOME RETIREES PAY MEDICARE HIKE For about 300,000 annuitants of the Civil Service Retirement System, who are not eligible to receive Social Security, there is an added factor. As happened in 2010, Medicare Part B premiums rose again for 2011, and, for most of those covered by Social Security, there was no increase assessed to them. But for those federal, state and local government retirees not covered by Social Security, the Part B premium increases even more, as this group pays not only the scheduled increase but also an extra amount to make up for the lack of payment by Social Security recipients. In 2009, NARFE was a leader in identifying the inequity in the law and promoting legislation that would have made Part B the same for everyone. Although it passed the House in September 2009, the Senate was unable to get the bill on the floor for a vote. At press time, NARFE was working with friendly lawmakers to protect public-service retirees who are not eligible to receive Social Security from the 2011 Part B rate hike. Unfortunately, the earliest Congress could consider such a bill would be after the November general election. This creates a logistical hurdle for the Social Security Administration, which would be hard-pressed to change its processing systems in time so affected retirees would not be billed for the Part B premium increase by January 2011. The fight to move Medicare premium equity legislation was expected to be difficult, given the reluctance of many legislators to approve bills with a cost.

INFLATION INDEX FIX? Many ask, why not change the way cost-of-living increases are measured and granted? One reason has always been that it might lead to other changes in Social Security and annuitant benefits. Without major changes in the Social Security system since 1983, Congress has been reluctant to make a change without looking into the overall health of the system. Now, however, with the bipartisan National Commission on Fiscal Responsibility and Reform looking at all aspects of the budget and deficit reductions, the prospect of major tax and benefit changes is no longer

STORY HIGHLIGHTS ■ As NARFE has reported for several months,

federal and military annuitants and Social Security beneficiaries will not receive a COLA in 2011. ■ House Speaker Nancy Pelosi has anounced that Congress will consider a bill to give a $250 payment to Social Security recipients,veterans and individuals receiving Social Security disability benefits. ■ NARFE fears that federal civilian retirees who are not eligible for Social Security will not be covered in this bill.It is asking NARFE members to contact their members of Congress to get equivalent relief. ■ NARFE also is trying to get a bill passed to exempt federal retirees from paying the 2011 Medicare Part B increase.Social Security recipients do not pay the increase in any year that they do not get a COLA.

a distant possibility (see story, p. 12). As reported in the November NARFE magazine, the commission is considering the merits of adjusting yearly benefits by the “chained CPI.” The chained CPI is similar to current law, with one exception: It reflects economic behavior known as the substitution effect. As some products become more expensive or as they change due to technology, consumers switch to cheaper or more efficient items. While some experts may feel that the current CPI method overstates the cost of living, NARFE’s legislative program states: “NARFE supports, and shall continue to evaluate, a CPI based on the objective analyses of the Bureau of Labor Statistics professionals, and opposes any politically arbitrary changes to the CPI. The BLS should establish a research program to develop an accurate measure for retirees.” The chained CPI grows more slowly than the current measure of CPI-W. A Congressional Budget Office analysis estimates that a Social Security benefit would be 3 percent lower after a 10-year period under the chained CPI measurement. Presumably, the chained CPI also would lower federal civilian and military retirement COLAs. One argument against the chained CPI is that it may not reflect the true cost of living for the elderly. NARFE will work with our partners in the Leadership Council of Aging Organizations – a coalition of national notfor-profit organizations representing 60 million older Americans – to ensure the fairest and most equitable method of calculating inflation protection for Social Security beneficiaries, and federal civilian and military retirees.

By Margaret Hostetler, Assistant Legislative Director DECEMBER 2010 | NARFE

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Legislative Report

Debt Panel Report Due Dec. 1

he National Commission on Fiscal Responsibility and Reform, charged with producing policy recommendations that will reduce the deficit and control the long-term growth in the national debt, is soon expected to present its recommendations to President Obama. The executive order establishing the commission requires the final report be voted on no later than December 1, 2010. As of press time in late October, the recommendations have not been made public. A vote of 14 of the 18 commission members is required to send an official recommendation to the president. However, a smaller number of commission members can join together to release recommendations or policy suggestions. In an unusual twist for Washington, commission members have had little to say about possible recommendations. Here are several possible outcomes that NARFE is watching: • Fourteen members of the commission agree on a single set of recommendations that is forwarded to the president. Under an agreement with congressional leaders, the House and Senate hold an up-or-down vote on the recommendations without making any amendments. • Fourteen members of the commission agree on a single set of recommendations that is forwarded to the president. However, Congress does not hold a vote on them. • The president includes some or all of the recommendations made by the commission in the FY 2012 budget (presented on February 7, 2011). Even if there is no single set of recommendations, the president can propose policy suggestions made by a group of commission members. • Members of Congress focus on some or all of the recommendations made by the full commission or subgroups of members. The 112th Congress (2011-2012) could hold hearings on the recommendations, attempt to pass them through the budget process and/or make other efforts to push the recommendations in the new Congress.

MAKING NARFE’S CASE In June, then-NARFE President Margaret L. Baptiste testified before the commission on behalf of the Association, urging the commissioners to protect the compensation and retirement benefits of federal workers, retirees, their spouses and survivors. When discussing federal entitlement programs, Baptiste said, “There is one significant difference: Civil service retirement and health benefits are earned by employees, and designed to attract and retain a skilled work

STORY HIGHLIGHTS ■ The National Commission on Fiscal Responsibility

and Reform will issue its report by December 1. ■ Even if 14 of the 18 members don’t agree on

recommendations to reduce the debt,the president or members of Congress could act on suggestions made by subgroups of commission members. ■ NARFE urged the commission not to single out the benefits of federal workers and retirees for cuts. force. They are not modeled on social insurance, healthbased or means-tested.” NARFE also took the lead on a joint letter from the federal/postal coalition to the commission. “Contributions earned or paid for entirely by federal and postal workers have kept their retirement systems solvent and sustainable. Given the soundness of the compensation and retirement systems covering federal and postal workers and retirees, we caution against reduction in their benefits.” The letter further stated that, during the 1980s and early 1990s, the reductions in benefits from the delay or cancellation of cost-of-living adjustments were done “without shared sacrifice by the rest of the American population. Doing so again would punish the contribution of public servants and sound financial planning.” Eighteen coalition members signed on to the letter, including the American Federation of Government Employees, National Treasury Employees Union, National Association of Letter Carriers and American Postal Workers Union. NARFE continues to stress that federal employees and annuitants are willing to make a shared sacrifice during these troubling economic times. However, NARFE also will continue to fight any proposals that put an unequal and inaccurate burden on the federal community.

WHAT YOU CAN DO The NARFE Legislative Department has a Fiscal Commission Watch Web page with updated information on the commission’s proposals and how you can get involved. It can be found on the Legislative Department’s Home Page on the NARFE Web site at www.narfe.org/legislation. You also can get updated information from the NARFE Legislative Hotline. Call 800-456-8410 and ask that your e-mail address be added to your member record or update your member record on the NARFE Web site.

By Sarah Holstine,Legislative Specialist DECEMBER 2010 | NARFE

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Legislative Report

Federal Workers Overpaid? No!

n a spate of recent “think-tank” reports, newspaper stories, op-ed columns and even advertisements, federal employees have been unfairly characterized as overpaid compared to private-sector workers. John Berry, director of the Office of Personnel Management (OPM), has labeled the allegations “unfair and untrue.” “The wages we pay are fair, and the benefits we offer are good,” Berry said. “But working for the federal government is about more than money. People grow up dreaming about working for NASA, or the CIA, or becoming a park ranger, or cancer researcher. We should be applauding these hardworking civil servants – not mischaracterizing them.” Some of the often-reported claims that federal employees are overpaid have come from Chris Edwards, director of tax policy studies for the Cato Institute, a Washington, DC, libertarian think tank that advocates limited government. In a June 2010 report titled “Overpaid Federal Workers,” Edwards alleges that “the average federal civilian worker now earns twice as much in wages and benefits as the average worker in the U.S. private sector.” However, the truth is that federal employees are paid 22 percent less than their private-sector counterparts, according to the 2009 “Annual Report of the President’s Pay Agent,” which was issued last December. The president’s “pay agent” is a board made up of the Secretary of Labor and the directors of OPM and the Office of Management and Budget. Every year, this board submits a report that, among other things, compares rates of pay under the federal General Schedule to nonfederal pay. To arrive at its comparison, the pay agent’s report has used the same methodology for many years – through both Democratic and Republican administrations.

COMPARING APPLES TO APPLES The pay agent’s report makes apples-to-apples comparisons. Instead of using gross averages, as federal pay critics do, the pay agent’s report accounts for differences in occupation, education, experience, length of service, age and geographic location. In other words, it distinguishes between workers such as a teenage McDonald’s cashier in Idaho and an experienced attorney in New York City; and even between a junior attorney who writes pro forma wills and a senior attorney leading billion-dollar litigation.

STORY HIGHLIGHTS ■ Not overpaid,federal employees are actually paid

22 percent less than their private-sector counterparts,according to an annual government report. ■ The government report’s comparisons are based on similar occupations,education,experience,length of service,age and location – not on gross averages. HIGHER QUALIFICATIONS, HIGHER PAY The pay agent’s report also accounts for the fact that the federal government contains more higher-paying occupations and jobs that require greater qualifications than the private sector generally. For example: • 44 percent of the federal work force consists of professionals and managers, while these groups consist of only 32 percent of the private sector; • 43 percent of the federal work force has a bachelor’s degree, while only 28 percent of the private sector does; • The average age of employees in the federal work force is 45, while the average age in the private sector is 40; and • 60 percent of federal employees have served their nation for 15 or more years, signifying more on-the-job experience than the average private-sector employee.

INAPPROPRIATE DATA, UNFAIR ATTACKS In addition, critics use inappropriate data that exaggerates the “total compensation” of federal employees. Most base their total compensation figures for federal employees on Bureau of Economic Analysis data used to calculate Gross Domestic Product (GDP). This data includes payments to the Civil Service Retirement Fund to account for promised benefits for now-retired personnel. However, when figuring total compensation for private-sector employees, similar privatesector pension payments are not included. Not only are these attacks inaccurate, they unjustly make scapegoats out of those citizens who take lower pay in order to provide public service and deliver important public goods. Federal civil servants represent national assets: intelligence analysts working to prevent terrorist attacks, researchers developing cures for cancer, nurses caring for wounded veterans or air traffic controllers ensuring safe travel. The government must pay at least close to a reasonable salary for these jobs to recruit and retain qualified individuals. American citizens deserve nothing less.

By John Hatton,Legislative Specialist DECEMBER 2010 | NARFE

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Legislative Report CIVICS 101:

THE INFORMED CITIZEN

Meet the Elect

ommercials selling detergent instead of 30second campaign spots in need of detergent. With our elections in the rearview mirror, the airways are free of campaign ads, at least for a while. The voters have spoken. Most tune out politics, but NARFE members need to engage. Now, our task is to meet the elect – candidates who won election to the 112th Congress (2011-2012).

LAME-DUCK SESSION Incumbents, even those retiring from Congress, knew a post-election or lame-duck session would begin in midNovember, break for Thanksgiving and run into December. Candidates elected for the first time attended orientation sessions in Washington the week before Thanksgiving.

MEET NEW, RETURNING LAWMAKERS NARFE members can set themselves apart from many other groups by meeting face to face with new and returning members of Congress. These officials, like any elected officials, will need to be educated about our issues. Indeed, most freshman lawmakers will have had little exposure to federal civil service issues. Moreover, most will be gracious and grateful for information, including this issue of

NARFE magazine and the preceding two months covering federal benefits Open Season. Self-interest about federal benefits should prompt questions about their own health benefits options.

WINNERS IN SHOCK Successful challengers and open-seat winners face a daunting learning curve. After the first full night’s rest in months, they need to learn quickly. NARFE members might offer to help by volunteering during the transition from candidate to lawmaker. Chapters should extend an open-ended invitation to address a NARFE chapter meeting or a multichapter forum.

HARNESSING THE MOMENT As congressional schedulers in each office map out the schedule for 2011, now is the ideal time to invite local representatives and both senators to address NARFE issues at your 2011 federation convention. NARFE federation conventions are good venues for senators (and governors) since they represent the entire state and draw the largest group of NARFE leaders to one place. Be flexible – plan your meeting around your lawmaker’s schedule, not when you typically hold meetings – and stay in touch!

I support NARFE¥PAC, the Retiree?s Fund for the Future Enclosed is my NARFE-PAC contribu tion: $ Federal law requires political committees to report the name, mailing address, occupation and name of employer for each individual whose contributions aggregate in excess of $200 in a calendar year.

Please circle: Name Address City, State, ZIP

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Mrs.

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Please send check, money order or credit card information to: Attn: Budget & Finance NARFE 606 N. Washington St. Alexandria, VA 22314-1914 Card Type:

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Card # Expiration Date Name on Card (Print)

Signature Date Only members of the National Active and Retired Federal Employees Association may contribute to NARFE-PAC. NARFE will neither favor nor disadvantage anyone based on the amount of a contribution, or the failure to make a voluntary contribution to this non-partisan political action fund. NARFE-PAC contributions are not deductible for federal income tax purposes.

DECEMBER 2010 | NARFE

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Managing Money

In Search of Yield: Buyer Beware By Mark A. Keen, CFP®

ock-bottom interest rates have been a recent boon to many. (Who would have thought you could get a 30-year, fixed-rate mortgage for 4.25 percent?) But for those trying to live off of their investment income, record low rates have been nothing short of a disaster. In fact, a retiree’s fear of dying too soon has been supplanted by the fear of running out of money before running out of time. As inflation erodes our purchasing power, and interest rates no longer support income needs, retirees have been the target of new products and advice for capturing more yield. But as many have already discovered, yield can come with a hefty price tag. Let’s start by putting the current conundrum into perspective. Having peaked at 21.5 percent in 1980, the prime rate has flat-lined at 3.25 percent (see chart, p. 19); the average money market fund yields approximately 0.15 percent; the three-month Treasury bill, 0.10 percent; the average bank money market account, 0.69 percent; the average five-year certificate of deposit (CD), 2.41 percent; and the 10-year Treasury bill, a whopping 2.35 percent. After adjusting for taxes and inflation, yields are negative! With yields in the cellar, the creative minds on Wall Street have been devising new products to satisfy the appetites of yield-hungry investors. One such product attracting large sums of money is the structured note. According to Bloomberg Businessweek, sales of structured notes have risen to $31.9 billion through August – up 58 percent over the same period in 2009.

Structured notes are notes or CDs with specific payout profiles (based on the performance of a variety of underlying asset classes) at maturity. The underlying asset classes can range from the simple to the exotic. Equities, commodities, foreign exchange rates and interest rates (such as the Libor rate, the rate that banks charge each other) are just a few of the possibilities. Structured notes have the potential to deliver higher yields to investors. However, because the performance is often tied to nonfixed income assets, they also can have the potential to provide shocking results when markets go south – a time when traditional fixed-income investments can provide stability. One extreme example, as noted in the Bloomberg Businessweek article “Individual Investors Duped by Derivatives,” is of an 84-year-old who invested in a structured note with a yield of 9 percent. This particular structured note’s payout was tied to the performance of Merck’s common stock. Furthermore, the note’s issuer had the right to pay out in Merck shares if the share price of Merck dropped below a trigger point. As it turned out, the stock did drop below the trigger point, and the 84-year-old investor received shares of Merck valued at roughly 30 percent below her original investment. It’s clear from the article title that the

author’s intent is to tap into the public’s distaste for derivatives and Wall Street’s propensity to peddle unsuitable products on unsuspecting investors. However, to be fair, derivatives themselves are not the problem, and not all structured notes expose investors to such risks. In fact, typically, one of the attractive features of structured notes is their principal protection feature, if held to maturity. Unfortunately, in the Businessweek story, there was no principal protection feature, and the buyer didn’t fully understand the product or the risks involved. As much as everyone loves to vilify Wall Street, they’re not the only ones potentially duping individual investors into risky strategies. To that point, magazines and newspapers alike have been jumping in with their two cents – granted, their intentions are good but perhaps a little misguided. Take, for example, this quote from a recent magazine article: “You can’t fund retirement nirvana on today’s skimpy payouts from cash and Treasuries. But with a small (my emphasis) step up in risk, you can earn a solid 4 percent on your portfolio – maybe a whole lot more.” The article goes on to offer high dividend-paying stocks, high-yield bonds and foreign bonds, among others, as investments that individual investors can use to boost their yield. These are all legitimate investments

THE CREATIVE minds on Wall Street have been devising new products to satisfy the appetites of yield-hungry investors.

DECEMBER 2010 | NARFE

and, considering inflation, taxes and longevity risk, I would argue that a part of every investor’s portfolio should be allocated to these securities. However,

making the comparison to cash and Treasuries as a small step up in risk doesn’t cut it. In the meltdown of 2008, many high-yield bond funds lost more

Prime Rate: 1980-2010 25% 20%

than 30 percent, and the average stock fell close to 40 percent. As I previously mentioned, it’s not that you shouldn’t invest in these types of securities. Just be sure you fully understand the risks involved and only incorporate them within the context of a comprehensive investment strategy. Otherwise, there may be unintended consequences.

15%

10%

0% 1980

1985

NARFE | DECEMBER 2010

1990

1995

2000

2005

2010

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

Live Well

Alcohol Use and Aging By Marilyn S. Radke, M.D.

lthough older adults generally drink less than younger people, they can still have trouble with alcohol use. As people age, they can develop health problems and chronic diseases, and take more medications that can make alcohol use a problem. Drinking can make health conditions worse, including diabetes, high blood pressure, congestive heart failure, liver disease, memory problems, depression and anxiety. Aging causes people to become more sensitive to alcohol’s effects. The bodies of older adults have a lower water content and break down alcohol more slowly than do the bodies of younger people. As a result, older adults have a higher amount of alcohol in their blood than younger people after drinking the same amount of alcohol. Older persons can develop slurred speech, lack of coordination and other problems with alcohol, even though their drinking habits have not changed. Although moderate drinking (up to two drinks a day for men and one drink for women) can reduce the chances for developing heart disease, heavy drinking can damage the heart, and long-term alcohol use can cause high blood pressure, which increases your risk of heart disease. Even one drink per day can raise the risk of breast cancer in women

who have been through menopause or have a family history of cancer. Heavy drinking can increase the risk of many cancers and can damage the liver, brain, muscles and immune system. A person’s bones become thinner and break more easily with age, and heavy drinking can increase the risk of

taining antihistamines can cause drowsiness and impair coordination; and • Medications for high blood pressure, diabetes, ulcers, gout and heart failure can make those conditions worse. Medications stay in the body for at least several hours. There can, there-

OLDER ADULTS have a higher amount of alcohol in their blood than younger people after drinking the same amount of alcohol. osteoporosis (brittle bones). In older adults, too much alcohol can lead to balance problems and falls that can result in hip and arm fractures. The rate of hip fractures in older adults increases with alcohol use. Many older adults take prescription and over-the-counter medications, and herbal remedies. Drinking alcohol can cause some medicines not to work properly and others to become dangerous or deadly. Mixing alcohol and certain medicines can cause sleepiness, confusion and lack of coordination, headache, nausea and vomiting. Certain medicines interact with alcohol and can produce negative effects. When taken with alcohol: • Aspirin or arthritis medications can increase the risk of bleeding in the stomach; • Acetaminophen in large doses can increase the chances of liver damage; • Some sleep aids, painkillers, antidepressants, anti-anxiety medicines, and cold and allergy medicines con-

fore, be a problem, even if you drink alcohol hours after taking medication. Read the warning labels on your medication, and ask your doctor or pharmacist whether it is safe to drink alcohol while taking it. In general, healthy adults over age 65 who drink more than three drinks a day or a total of seven drinks a week risk serious alcohol problems. Depending on your health, you may need to drink less than these limits or not at all. Do not drink if you plan to drive,

To Learn More

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

DECEMBER 2010 | NARFE

READING TECHNOLOGYSimplified

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

Open Season Report Part 3 • Plan Changes • Prescription Drug Guide Starting on p. 24 NARFE | DECEMBER 2010

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operate machinery, take medicine that interacts with alcohol or have a medical condition that can be made worse by drinking. One alcoholic drink is: • 12 ounces of regular beer, ale or wine cooler; • 8 ounces of malt liquor; • 5 ounces of wine; or • 1.5 ounces (a shot glass) of “80 proof” liquor, such as whiskey, gin, vodka and rum. Clues to a possible alcohol problem for older adults include memory loss, depression, anxiety, poor appetite, unexplained bruises, falls, sleeping problems and inattention to cleanliness or appearance. Answering “yes” to one or more of the following questions is a sign of a possible drinking problem: • Have you ever felt you should cut down on your drinking? • Have people annoyed you by criticizing your drinking? • Have you ever felt guilty about your drinking? • Have you ever felt as though you needed to have a drink first thing in the morning (“eye opener”)? Talk with your doctor if you answered “yes” to any of these questions or if you feel you have drinking-related health problems.

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Alzheimer’s Update

New Research and a New Goal By Barb L. Pretzer

ARFE and the Alzheimer’s Association celebrated the 25th anniversary of our proud partnership at NARFE’s 31st National Convention in Grand Rapids, MI. Convention attendees received a commemorative lapel pin from the Alzheimer’s Association recognizing our 25 years of working together to support research into the cause, prevention and treatment of, and cure for, this disease. The Virginia Federation was recognized for contributing the most in terms of total dollars during the past fiscal year ($66,270), and the Mississippi Federation was recognized for contributing the most per capita. Additional funds were raised through the generosity of NARFE members and guests, including our “Going Green for NARFEAlzheimer’s” 50/50 cash raffle. Our keynote speaker Mary Ellen Geist also donated a portion of the sales of her book, Measure of the Heart: A Father’s Alzheimer’s, A Daughter’s Return. The NARFE-Alzheimer’s National Committee selected four additional research projects to fund (which are described below) and recommended to the general assembly of delegates that we set a new goal to reach $10 million in 2012. The new fundraising goal for Alzheimer’s research was unanimously approved. The four new research grants, totaling $560,000, bring the total

number of NARFE-funded grants to 49. The four research grants are: Dr. Donna Cross from the University of Washington (Seattle) plans to expand her earlier work by focusing on an enzyme that has been associated with the production of two Alzheimer’s-related molecules: beta amyloid and abnormal tau protein. Dr. Cheng-Xin Gong at the New York State Institute for Basic Research (Menands, NY) will study how loss of insulin signaling (insulin plays an important role in the brain) contributes to

THE FOUR NEW research grants selected by the NARFEAlzheimer’s National Committee bring the total number of NARFE-funded grants to 49. neurofibrillary tangles, which is one feature of Alzheimer’s pathology. Dr. Kumar Sambamurti of the Medical University of South Carolina (Charleston) will study whether treatments to reduce homocysteine levels (elevated concentrations in the blood are thought to increase the risk for heart disease) also will reduce the development of Alzheimer’s-like pathology. Dr. Maria Corrada of the University of California (Irvine), in this long-term assessment, hopes to clarify how the dementia risk and the relationship between vascular health and brain health

change over the course of a lifetime with people age 90 and older. This knowledge could lead to lifestyle prevention strategies. We are always looking for ways to make it easier and more efficient for NARFE members to donate to Alzheimer’s research. In November, the Alzheimer’s Association rolled out a special page for NARFE on its Web site (www.alz.org/narfe) for making online credit card donations. You may now take advantage of the “cash-back bonus” or “cash-back rewards” associated with your credit card. You will be able to report your chapter number to ensure your chapter receives credit. After donating online, you will receive an e-mail confirming your donation has been received by the Alzheimer’s Association. (Your e-mail address will be kept confidential and not used for any other purpose by the Alzheimer’s Association.) In addition, you will receive an acknowledgement letter in the mail for tax purposes. We also have revised the coupon in NARFE magazine to include the option of using your credit card. We are very excited about this new feature and hope it will make donating easier for members of our offshore federations and chapters, as well as for NARFE members throughout the nation. Thanks to all of you for supporting Alzheimer’s research. We are very close to meeting our goal of $9 million by NARFE’s 90th Anniversary. And I look forward to another productive year as we work toward meeting our new goal of $10 million in 2012.

Barb L. Pretzer is chairman of the NARFE-Alzheimer’s National Committee. E-mail: bpretzer@ksu.edu. DECEMBER 2010 | NARFE

SPECIAL MARKET OPPORTUNITY Your Expert Guide to the World’s Finest Coins Nicholas J. Bruyer, CEO, First Federal Coin Corp. ANA Life Member Since 1974

How can two $5 Gold Eagles have a 600% difference in value? If you’re not interested in the answer, give this to your best friend. Almost everyday, very successful, very sophisticated business people tell us they’re interested in buying gold. The problem is, they don’t have the first notion of where to begin.

This is the pinnacle of a coin’s state of quality. It just doesn’t get any higher. Bottom line: collectors often pay more for them.

Our response is always the same: there’s bullion gold, and then there’s collectible gold. We’re not talking about bullion gold. We’re talking about a special kind of gold that collectors climb all over themselves to get their hands on.

You want to buy collectible gold, but not just any collectible gold.

Use our Collector’s Checklist when you go shopping for gold. First on our list: collectors look for a coin that’s in demand. And there are few gold coins that collectors want more than the American Gold Eagle. It was created during Ronald Reagan’s administration. In real estate, value is driven by location, location, location. In coins, it’s quality.

You’ve paid close attention to our collector’s checklist: Is it in demand? Has it earned the highest grade possible? Is it a First Strike? Our recommendation:

For collectors, the higher a coin’s grade, the higher the coin’s value. That’s number #2 on our checklist. One of those $5 Gold Eagles is the highest collectible grade possible: the absolutely flawless grade of MS70 (MS stands for “Mint State”). It’s referred to as the “perfect” coin.

A 2010 $5 Gold American Eagle MS70 First Strike.

Consider this: In its bullion grade, a 2001 $5 Gold Eagle is valued at $150—but a perfect grade MS70 is valued at $950—a staggering 600% difference!

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No. 3 on our checklist: Collectors covet First Strikes. If a $5 Gold American Eagle in MS70 is sizzling hot, what happens when it achieves the exalted status called First Strike™?

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PEN SEASON REPORT FEHBP Plan Changes

This is the last of a three-part series. he 2010 Federal Benefits Open Season for Federal Employees Health Benefits Program (FEHBP) enrollment changes ends Monday, December 13, 2010. You should receive this issue of NARFE magazine in late November, so there’s still time to review health plans and make an informed decision. This month’s Open Season Report includes details about plan changes in the six open-to-all, fee-for-service plans for 2011. It also provides the same premium charts that were included in November’s Open Season Report. Open Season changes made by federal retirees and survivor annuitants are effective January 1, 2011, and the premium changes will be effective in the February 1, 2011, annuity payments. Open Season changes for federal employees are effective at the beginning of the first pay period after January 1, 2011. If you are a current employee and not presently enrolled in the FEHBP, you may enroll during Open Season if

you are not otherwise excluded from coverage because of the nature of your appointment. If you are an annuitant and are not presently covered by the FEHBP as an enrollee or a family member, you cannot enroll in the FEHBP during Open Season, except if you suspended your FEHBP enrollment in favor of coverage under TRICARE, TRICARE For Life, a Medicare Advantage HMO plan, CHAMPVA, Medicaid or as a Peace Corps volunteer.

MEDICARE SUBOPTIONS OFFERED TO RETIREES The Government Employees Health Association (GEHA) and the Mail Handlers Benefit Plan (MHBP) have been approved by the Office of Personnel Management (OPM) to offer Medicareeligible enrollees incentives through subsidizing the enrollees’ Medicare Part B premium. These “suboption” pilot programs are outlined below: • GEHA. Retired enrollees in GEHA’s High option who already are covered by Medicare Part A and who

FEHBP Premium Increases 2002–2011

are either covered or are eligible to be covered by Medicare Part B some time in 2011 can sign up for the suboption. GEHA will pay the enrollee $75 each month ($900 a year) to help defray the monthly premium costs of Part B when the enrollee actually enrolls. If you are married and are enrolled in GEHA’s High option family coverage, both you and your spouse must be over age 65 and retired to be eligible for the pilot program. Participants in the pilot program will not pay deductibles or copayments for inpatient hospitalization, but will pay deductibles and co-payments for physician visits and other care, and they will pay the same for prescriptions as non-Medicare enrollees. See page 83 of the GEHA brochure for 2011 for all of the details. • MHBP. MHBP’s suboption pilot program features a Medicare Part B premium “pass through” under the plan’s Standard option. For each month that you are enrolled in the program and have Medicare Part A and Part B as your primary coverage, MHBP will contribute an amount equal to the regular 2011 Medicare Part B monthly premium of $120.20. MHBP will not waive its deductibles, co-payments or coinsurance for participants in the pilot program. See page 127 of the Mail Handlers Benefit Plan brochure for 2011 for all of the details. 2011 brochures for all of the FEHBP plans can be viewed and downloaded to your computer by going to www.opm.gov/insure.

2011 PREMIUMS

Source: Office of Personnel Management

*Estimated

The overall weighted average total premium increase for nonpostal employees and all annuitants in the FEHBP for 2011, based upon all of the DECEMBER 2010 | NARFE

enrollees in all of the plans, is 7.3 percent. This 7.3-percent figure is not an across-the-board increase per plan. This is the weighted average increase for the total premium (government and employee shares) for all of the enrollees in all of the plans in the FEHBP. This means that some plans’ premiums decreased, some did not change at all, and some increased. Fee-for-service plans will rise an average of 7.1 percent, while local health maintenance organization (HMO) plans’ premiums will increase an average of 8 percent. Enrollees in the Blue Cross/Blue Shield Standard option – the most popular enrollment – will see their premiums increase 6.9 percent for selfonly coverage and 7.6 percent for family coverage. There are HMOs where enrollees will see huge increases in their share of the premium. The monthly enrollee share of premiums for Health Net of Northern California will rise $290.67. The enrollee share for Aetna Open Access’ High option family plan for Delaware and New Jersey will increase $266.56 per month. GHI HMO Select of New York enrollees in codes 6V2 and X42 will see monthly increases of $370.43 and $485.98. On the other end of the spectrum, monthly premiums for two of the MVP Health Care plans of NY (enrollment codes GA5 and MF5 Standard family) will decrease substantially for 2011. But even if your particular plan’s premiums are not rising by much, make sure you read the brochure – particularly Section 2, “How We Change for 2011.” This will reveal which, if any, out-of-pocket expenses, such as co-pays and coinsurance, have increased. Also, when reading the NARFE | DECEMBER 2010

brochure, note which costs are not included in meeting the plan’s yearly deductible. These out-of-pocket expenses can really add up.

PLANS’ STATUS FEHBP participants will be able to select from 207 health plan choices. MercyCare HMO (Wisconsin) and SelectHealth HMO (Utah) have joined the FEHBP for 2011. Five HMOs will no longer participate in the FEHBP after December 31, 2010. They are: • Vantage Health Plans (Code MV) in Louisiana • PacifiCare of Nevada (Code K9) • AmeriHealth HMO (Code FK) in New Jersey • Community Blue (Codes BS, BX, BZ) in New York • BlueChip Coordinated Health Plan (Code DA) in Massachusetts and Rhode Island. In addition, UnitedHealthcare Insurance Company, Inc. (Code E9) will no longer offer an HDHP or CDHP option in 25 states and the District of Columbia. And Coventry Health Care of Louisiana (Code HB) will terminate its HDHP option. Several plans will reduce parts of their service areas by withdrawing from those service areas, effective December

31, 2010. The plans are: • Humana CoverageFirst CDHP (Code DB), Phoenix/Tucson, AZ (Codes MQ, YG), Jacksonville and Orlando, FL (Codes 9L, 9J), Baton Rouge and New Orleans, LA (Codes L6, BT), Memphis and Nashville, TN (Codes T8, T2), Dallas and Houston, TX (Code IA), Salt Lake City, UT • Fallon Community Health (Standard option only) (Code JV), Massachusetts • Aetna Open Access (Code 7D), Cleveland/Toledo, OH • HealthAmerica PA (Codes PN, 9N), Southeastern Pennsylvania Employees who do not change health plans by making a positive election into another FEHBP plan during Open Season will not have health benefits for 2011. Retirees who do not change health plans by making a positive election into another FEHBP plan during Open Season will be put into a comparable option in the fee-for-service Blue Cross/Blue Shield plan.

TERMINATION NOTICE Enrollees will know of their plan’s

PEN SEASON REPORT termination from two sources. First, a pre-Open Season Letter for all agency benefits officers is produced. It includes details about Open Season, including the names of plans leaving the FEHBP. Second, all terminating plans are required to mail a notice to their members advising them of their decision to withdraw from the program. Because of the transitional care provision in the Patients’ Bill of Rights, enrollees with chronic or disabling conditions, or in the second or third trimester of pregnancy, may be able to continue seeing their specialists even after the plan’s termination date. Plans generally decide to withdraw based on an assessment of enrollment, use and premium. However, OPM can initiate a termination if it determines that a plan is no longer able to meet its contractual obligations to the FEHBP.

DENTAL AND VISION BENEFITS Open Season enrollment for the Federal Employees Dental and Vision Insurance Program (FEDVIP) will coincide with the FEHBP 2010 Open Season for 2011 health plan changes and the Flexible Spending Accounts (FSA) Open Season for current employees. (Under Internal Revenue Service rules, retirees cannot participate in the federal government’s FSA program.) Eligible parties will be able to choose benefits that cover dental care, vision care or both. In addition, the coverage(s) can be elected for the enrollee only, the enrollee plus one other person, or the enrollee and his or her family. Anyone who retired on an immediate annuity, including an employee who retired under the Federal Employees Retirement System (FERS) minimum retirement age (MRA) + 10 provisions of the retirement law, is eligible for FEDVIP. In addition, survivors who

receive immediate annuities as the result of the death of a retiree described in the previous sentence are also eligible. (See pp. 34-38.)

MEDICARE PART D AND FEHBP The Medicare Part D prescription drug benefit is generally geared to people who do not have any employerprovided or union-provided prescription drug coverage. Anyone covered under the FEHBP has what is known as “creditable prescription drug coverage.” This means that the FEHBP prescription drug coverage is at least as good as, if not better than, the Part D coverage. This also means that if a person with FEHBP coverage turns down Part D when he or she is first eligible to enroll but signs up at some point in the future, he or she will not be required to pay a penalty for late enrollment in Part D. The FEHBP plan brochures contain statements certifying the creditability of each individual plan’s drug coverage for Part D late-enrollment purposes. These statements will be found at the beginning of each plan’s brochure, im-

mediately before the table of contents, and will be headed “Important Notice From (Plan’s Name) About Our Prescription Drug Coverage and Medicare.” All FEHBP enrollees should have received a copy of their plans’ 2011 brochures before the beginning of Open Season, November 8. Part D requires a monthly premium in addition to the Medicare Part B premium. (The Medicare Part B premium will stay at $96.40 per month in 2010 for many because there will be no Social Security cost-of-living adjustment.) Part D premiums vary from plan to plan, but the estimated average monthly basic premium for 2011 is $30. The Part D enrollee may have to pay up to the first $310 in prescription drug costs, the Part D deductible amount. Some Part D enrollees will not be required to pay the $310 deductible. In addition, Part D enrollees will pay co-pay costs until the combined amount paid by both the enrollee and the Part D plan reaches $2,840 and all the cost of prescription coverage from $2,840 up to $4,550 – the so-called

Contributors to the 2011 FEHBP Premium Increase The Office of Personnel Management identified the following factors as contributing to the 2011 FEHBP 7.3-percent overall premium increase and the percentage of the increase attributable to each factor. Premiums for local plans, such as HMOs, will increase an average 8.0 percent, while national plans will see an average increase of 7.1 percent. FEHBP carriers used excess reserves in recent years to restrain premium increases. Savings contributors are also identified (as minus factors) to reflect savings in the program. These figures reflect the average bi-weekly premium. Factor Percent of Increase Utilization, technology and medical inflation Demographics (age, sex, etc.) Benefit changes Enrollee choice (plan movement) Reserves, financing Other causes Average bi-weekly change

7.2 percent 0.2 percent 0.7 percent -1.7 percent -0.5 percent 1.4 percent 7.3 percent DECEMBER 2010 | NARFE

PEN SEASON REPORT “donut hole.” After that threshold is met, Part D enrollees will pay 5 percent of the additional prescription drug costs for the rest of the calendar year. If the Part D enrollee reaches the donut hole in 2010, he or she will receive a one-time $250 rebate check. In 2011, Part D enrollees will get a 50-percent discount on covered brand name prescription drugs at the time

they are purchased. If Medicare is a person’s primary insurer, FEHBP plans will coordinate prescription drug payments with the Medicare Part D carrier. Under your FEHBP coverage, you simply pay co-payments and/or coinsurance for your prescription drugs, so the vast majority of you will not need Medicare Part D.

2011 Monthly Premiums – Fee-For-Service Plan Option

Code

Total Premium

Gov’t Pays

You Pay

Enrollee Increase/ Decrease

Blue Cross/Blue Shield Standard self Standard family Basic self Basic family

104 105 111 112

$578.61 $1,306.89 $453.48 $1,061.97

$391.43 $875.29 $340.11 $796.48

$187.18 $431.60 $113.37 $265.49

$12.10 $30.63 $12.61 $29.51

454 455 481 482 414 415

$611.20 $1,398.76 $394.77 $894.51 $285.91 $681.63

$391.43 $875.29 $296.08 $670.88 $214.43 $511.22

$219.77 $523.47 $98.69 $223.63 $71.48 $170.41

$53.76 $127.18 $20.98 $47.55 $11.77 $28.05

311 312 314 315 341 342

$567.62 $1,290.97 $346.62 $788.28 $380.81 $869.79

$391.43 $875.29 $259.97 $591.21 $285.61 $652.34

$176.19 $415.68 $86.65 $197.07 $95.20 $217.45

$3.86 $12.55 $6.43 $14.78 $0.00 $0.00

321 322

$552.07 $1,202.61

$391.43 $875.29

$160.64 $327.32

$13.64 $27.58

471 472 474 475

$477.08 $1,078.72 $336.70 $757.47

$357.81 $809.04 $252.53 $568.10

$119.27 $269.68 $84.17 $189.37

$7.81 $17.64 $0.00 $0.00

441 442 444 445

$661.68 $1,558.25 $501.78 $1,145.95

$391.43 $875.29 $376.34 $859.46

$270.25 $682.96 $125.44 $286.49

$34.61 $87.53 $16.84 $38.45

401 402

$493.96 $1,181.46

$370.47 $875.29

$123.49 $306.17

$9.18 $11.56

Mail Handlers Standard self Standard family HDHP self HDHP family Value Opt. self Value Opt. family

GEHA High self High family Standard self Standard family HDHP self HDHP family

NALC High self High family

APWU High self High family Consumer-Driven self Consumer-Driven family

SAMBA High self High family Standard self Standard family

Foreign Serv. Ben. Plan High self High family

FEE-FOR-SERVICE CHANGES This portion of the Report addresses the principal changes of the six fee-forservice plans available to all employees and annuitants. There are another five fee-for-service plans open only to specific groups. Space limitations preclude listing all changes for all plans. When reviewing each plan’s changes, take special note of announced changes in preferred provider organizations (PPOs). If you live in a state where your plan is changing its PPO network, you need to contact the plan and ask for a new PPO directory for 2011 to assure that your doctors, hospitals, etc., will be in the new PPO network. Otherwise, you may wish to change plans during Open Season. Because there are more than 200 FEHBP HMOs, it is not possible to list their changes in this report. OPM publishes the Guide to Federal Benefits: For Federal Retirees and Their Survivors (RI 70-9) and a similar one for current federal employees (RI 70-1), which provide premium and out-of-pocket expense data on all of the plans in the FEHBP. You can access those guides through www.opm.gov/insure. When deciding on a plan, be sure to review your current plan’s 2011 brochure, as well as the brochures for other plans you are considering. You can view brochures for each plan by going to www.opm.gov/insure. Every brochure is formatted in the same way with sections on topics such as “How Our Plan Has Changed,” “Your Costs for Covered Services,” “Coordinating Benefits With Other Coverage,” etc.

PROGRAMWIDE CHANGES Certain provisions of the new health reform law (Affordable Care Act) will become effective January 1, 2011, for all FEHBP plans. Preventive care and DECEMBER 2010 | NARFE

screenings will be available with no out-of-pocket costs, and older children up to the age of 26 can be added to the enrollee’s family coverage. All plans will offer tobacco cessation benefits that comply with the U.S. Public Health Service’s guidance to include full coverage (no enrollee copays) for seven medications approved by the U.S. Food and Drug Administration and four counseling sessions per quit attempt (limited to two quit attempts per year). Oklahoma has been added in 2011 to the states designated as medically underserved. The entire list is: Alabama, Arizona, Idaho, Illinois, Kentucky, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oklahoma, South Carolina, South Dakota and Wyoming. In these states, fee-for-service plans reimburse any licensed medical practitioner for all covered services within the scope of that license, even if they wouldn’t normally cover them in states not designated as medically underserved.

family coverage, the increase is $17.64 to $269.68 per month. Postal employees will pay $34.13 for self-only coverage and $77.17 for family coverage each pay period. In 2011, the plan has dropped the individual mental health calendar-year deductible altogether. This means that your out-of-pocket costs for mental health and substance abuse will count

2011 Monthly Premiums – Largest HMOs* State

Plan Option

MD, DC, VA

MD-IPA

Kaiser Foundation N. California High self 591 $621.83 High family 592 $1,484.38 Standard self 594 $520.52 Standard family 595 $1,218.01

$391.43 $875.29 $390.39 $875.29

$230.40 $609.09 $130.13 $342.72

$21.28 $57.76 $14.25 $51.02

Kaiser Foundation Mid-Atlantic High self E31 $526.52 High family E32 $1,211.02 Standard self E34 $330.55 Standard family E35 $760.20

$391.43 $135.09 $875.29 $335.73 $247.91 $82.64 $570.15 $190.05

$2.08 $10.36 $10.07 $23.13

Kaiser Foundation S. California High self 621 $478.94 High family 622 $1,106.89 Standard self 624 $306.87 Standard family 625 $709.26

$359.21 $119.73 $830.17 $276.72 $230.15 $76.72 $531.95 $177.31

$5.23 $12.10 $3.44 $7.93

CA PLAN CHANGES Following are the major fee-forservice plans and the changes in their costs and benefits for 2011, taken from their brochures. Because of space limitations, we do not show all of the changes for next year, and we urge you to read the plans’ brochures and review them carefully. Note: Postal rates apply to career employees of the U.S. Postal Service. The Postal Service has a different cost-sharing arrangement than the rest of the federal government. American Postal Workers Union (APWU) High Option Changes. In 2011, monthly premiums for enrollees in selfonly coverage will increase $7.81 to $119.27 per month. For enrollees in NARFE | DECEMBER 2010

toward the plan’s $500 per person/$1,000 per family deductible. The plan has added Cancer Centers of Excellence as a separate provider category and will pay 95 percent of the plan’s allowance for cancer-related treatment at one of those centers. Consumer-Driven Health Plan (CDHP) Changes. Next year’s premiums did not change from 2010 and stay at

High self High family

DC, MD, VA

Aetna Open Access

HMSA

High self High family Basic self Basic family High self High family

NYNJ

GHI Health Plan

PacifiCare

High self High family Standard self Standard family High self High family

Code

Total Premium

Gov’t Pays

JP1 JP2

$523.64 $391.43 $132.21 $1,207.48 $875.29 $332.19

$391.43 $875.29 $354.71 $830.13

You Pay

Enrollee Increase/ Decrease $10.99 $29.94

JN1 JN2 JN4 JN5

$739.59 $1,656.61 $472.94 $1,106.84

871 872

$452.21 $339.16 $113.05 $1,006.57 $754.93 $251.64

$7.40 $16.46

801 802 804 805

$608.23 $1,520.65 $424.80 $991.64

$216.80 $645.36 $106.20 $247.91

$16.78 $52.10 $9.65 $22.54

CY1 $474.02 $355.52 $118.50 CY2 $1,082.03 $811.52 $270.51

$5.95 $13.58

$391.43 $875.29 $318.60 $743.73

$348.16 $69.27 $781.32 $157.94 $118.23 $13.06 $276.71 $30.59

*Based on information provided by the Office of Personnel Management. If your plan is not listed, it simply means that your plan is not one of the largest. It does not mean that your plan is a bad plan.

PEN SEASON REPORT $84.17 per month for self-only coverage and $189.37 per month for family coverage. Postal employees will see only a modest increase in biweekly premiums. Enrollees in APWU’s Consumer Driven Option’s Diabetes Disease Management Program who participate as required may be eligible for additional incentives when using in-network services. See page 88 of the brochure. Blue Cross/Blue Shield (BC/BS) Standard Option Changes. Premiums are higher for self-only coverage, up $12.10 to $187.18 per month; and for family coverage, up $30.63 to $431.60. Postal employees will see their biweekly premiums for self-only coverage rise by $6.28 to $63.81; and for family coverage, biweekly premiums will go up $15.87 to $148.70. The coinsurance for medical emergency treatment by both participating and nonparticipating providers performed in an emergency room is 15 percent of the plan allowance. The coinsurance is also 15 percent of the plan allowance for medical emergency treatment at member and nonmember facilities and hospitals, much lower than the 35 percent the plan required previously. The calendar-year deductible has increased to $350/individual and $700/ family, and the 35 percent of the plan’s allowance coinsurance for preventive care services for children is applied after the calendar-year deductible is satisfied. Co-pays will increase to $250 per admission for inpatient care at preferred facilities and $350 per admission plus 35 percent of the plan allowance for inpatient care at member facilities. Benefits for outpatient surgery and related services performed and billed for by a hospital or freestanding ambulatory facility will now count toward the calendar-year deductible.

The plan will now pay benefits in full for inpatient mental health and substance abuse services received from preferred professional providers. Under the plan’s prescription drug benefits, co-pays have gone up to $70 per prescription for the first 30 prescriptions for brand name drugs when using the mail order services. Enrollees may be eligible to receive their first four generic prescriptions free through the mail order services when changing from a brand name to a corresponding generic drug replacement. Basic Option Changes. Premiums will rise $12.61 to $113.37 per month for self-only coverage and by $29.51 to $265.49 for family coverage. Postal employees will pay $32.44 every two weeks for self-only coverage and $75.97 for family coverage. Enrollees will now have $25 co-pays for EEGs, ultrasounds and X-rays, and $75 for CT scans, MRIs, PET scans and other tests. Co-pays also will rise for emergency room care and at preferred urgent care centers for care related to accidental injury and medical emergency. On the other hand, co-pays for outpatient mental health and substance abuse treatment provided and billed by a preferred facility are lower ($25), as is the copay for professional charges for intensive outpatient treatment in a provider’s office or other professional setting. Co-pays for preferred brand name drugs purchased at a preferred retail pharmacy are higher, at $40 per 34-day prescription, and the minimum you pay will be $50 for each 34-day supply or $150 for a 90-day supply. Changes to both Standard and Basic options. In 2011, the plan will no longer require enrollees to obtain prior approval before receiving outpatient care for mental health and substance abuse treatment or for outpatient intensitymodulated radiation therapy related to

treatment of head, neck, breast or prostate cancer. The plan has also added benefits for adult screenings to include some sexually transmitted infections. There will no longer be a co-pay required for smoking cessation treatments at a preferred provider, and smoking cessation medications are free from a preferred retail pharmacy when the enrollee is engaged in the Breathe for Smoking Cessation module. The plan will pay in full up to $1,000 per hearing aid per ear for children and adults, and for speech-generating devices obtained from any qualified provider. The plan will now include benefits for osteopathic and chiropractic manipulation treatment limited to 12 visits per year under the Standard option and 20 visits per year under the Basic option. Government Employees Health Association (GEHA) Standard Option Changes. Monthly premiums for self-only coverage will increase slightly to $86.65 and to $197.07 for family coverage. Postal employees will pay $24.80 for self-only coverage and $56.39 for family coverage each pay period next year. Co-pays for visits to preferred provider organization (PPO) mental health providers are reduced to $10. High Option Changes. Monthly premiums for self-only coverage will be $176.19 per month. High family coverage premiums will increase to $415.68 per month. Postal employees will pay lower biweekly premiums of $58.74 for self-only coverage and an increase to $141.35 for family coverage. Changes to Both Standard and High Options. The plan has dropped lifetime maximum benefits for durable medical equipment and dropped the lifetime limit for outpatient vision therapy done by either an ophthalDECEMBER 2010 | NARFE

This Open Season get on the road to good health with the APWU Health Plan. As a retiree you’ve earned the freedom to do what you want and enjoy life to the fullest. With the APWU Health Plan’s High Option all your needs are covered. Whether you’re on the road visiting friends and family, or at home relaxing, the High Option has you covered. Enjoy low copays, deductibles and a comprehensive prescription plan. All members in the APWU Health Plan also have full access to the hearing benefit which covers hearing aids up to $1,500. With Medicare as the primary health plan members in the High Option generally pay no copays and coinsurance. For more information on the High Option or the APWU Health Plan please visit our website at www. apwuhp.com.

Self Only (471)

$119.27

Self and Family (472)

$269.68

PEN SEASON REPORT mologist or optomologist. All routine adult vaccinations are free, as are office visits for adult preventive care examinations if they are done at a plan PPO. Mail Handlers Benefit Plan (MHBP) There are many changes under both the Standard and the Value Plan options in 2011. See p. 9 of the plan brochure for the entire list. Standard Option Changes. Monthly premiums will increase $53.76 to $219.77 for self-only coverage, and family coverage will increase $127.18 to $523.47. Postal employees will see their biweekly premiums increase $25.51 to $78.85 for self-only coverage and rise $60.43 to $191.10 for family coverage. In addition to the steep rise in premiums, MHBP has increased many copayments and deductibles, and it has raised its catastrophic protection limit on out-of-pocket expenses for specialty drugs. The plan has also done away with a separate catastrophic limit for mental health and substance abuse, and has combined those out-of-pocket costs with medical service costs â&#x20AC;&#x201C; in effect, raising the medical catastrophic limits: to $6,000 if all of the services are done by its PPO/in-network providers and $10,000 if the services are charged to non-PPO/out-of-network providers or a combination of PPO and non-PPO providers. The plan has increased benefits for adult routine physical exams, immunizations and routine screenings, which now will be paid at 100 percent. Value Plan Changes. Enrollees with self-only coverage will see an $11.77 increase and pay $71.48 per month; those with family coverage will pay $170.41 per month. Postal workers will see a $4.47 increase to $20.45 every two weeks for selfonly coverage and pay $48.76 every pay

period for family coverage. Like the Standard option, the plan has combined the calendar-year deductibles for medical services with mental health and substance abuse services for next year. The deductible will be $900 individual/$1,800 family unless you receive all of your services from a plan PPO/in-network provider. Then, the calendar-year deductible is $600 individual/$1,200 family. Benefits have increased for visits to a non-PPO emergency room and for outpatient testing services related to mental health and substance abuse conditions. National Association of Letter Carriers (NALC) Plan Changes. Premiums increased by $13.64 per month to $160.47 for self-only coverage and increased $27.58 per month to $327.32 for family coverage. Enrolled postal workers will see biweekly premiums increase to $51.56 for self-only coverage and increase to $100.57 for family coverage. Under its mental health and substance abuse benefits, NALC no longer has a separate calendar-year deductible or separate out-of-pocket maximum. The plan is also covering some initial inpatient nonelective surgeries done by a non-PPO surgeon at the PPO benefit level and will pay the plan allowance for non-PPO emergency room physicians and others at the PPO benefit level when the services are performed at a PPO ambulatory surgery center. The plan also is increasing benefits for some prescription drugs: The costshare for a 60-day supply of a specialty drug purchased through Caremark Specialty Pharmacy mail order will drop to $250. Also, the co-pay for a 90day supply of generic medications through the NALCPreferred generic

program is $7.99. Special Agents Mutual Benefit Association (SAMBA) High Option Changes. Premiums for 2011 will increase $34.61 to $270.25 for self-only coverage and go up $87.53 to $682.96 per month for family coverage. Postal employees will pay $102.15 for self-only coverage and $264.71 for family coverage per pay period. Next year, the plan will no longer have a separate calendar-year deductible for certain expenses for mental health and substance abuse treatment. Prescription co-payments under the planâ&#x20AC;&#x2122;s retail prescription drug and mail order prescription drug programs will increase. For 2011, the plan will no longer charge a $100 co-pay for outpatient hospital or ambulatory surgical center visits under PPO benefits. Standard Option Changes. Next year, self-only enrollees will see a $16.84 increase in monthly premiums to $125.44, and family coverage enrollments will rise $38.45 to $286.49 per month. Postal employeesâ&#x20AC;&#x2122; premiums will increase by $35.90 and by $81.98 for self-only coverage and family coverage, respectively. There will be a different deductible under the Standard option: The deductible will rise to $350 per person and $1,050 per family. Catastrophic protection will also increase to $5,000 per person/$7,000 per family if all services are provided by a PPO. For services provided by a non-PPO or a mix, the calendar-year, out-of-pocket maximum will increase to $7,000 per person/$9,000 per family. SAMBA has eliminated the preventive dental services benefit for 2011.

Retirement Benefits Service Department DECEMBER 2010 | NARFE

Don’t let it get down to the wire.

$5,000 Annual Maximum on the High Option

It’s not too late for a healthy conversation about your dental benefits. Open Season to elect your dental coverage ends on December 13, 2010. You can review The MetLife Federal Dental Plan information and rates by visiting our website at federaldental.metlife.com. To enroll go to www.BENEFEDS.com

Like most group accident and health insurance policies, MetLife dental insurance policies contain certain exclusions, limitations and terms for keeping them in force. Metropolitan Life Insurance Company, New York, NY 10166. © 2010 MetLife, Inc. © PNTS L1010137045(exp1011)(All States)(DC,GU,MP,PR,VI)

PEN SEASON REPORT Dental/Vision Program

he Federal Employees Dental and Vision Insurance Program (FEDVIP) is a supplemental dental and vision program authorized by the Federal Employee Dental and Vision Benefits Enhancement Act of 2004. The Office of Personnel Management (OPM) contracts with 10 insurance carriers – seven dental plans and three vision plans – to provide comprehensive coverage under the program. Three enrollment types are available: • Self Only: A self-only enrollment covers only the enrolled employee or annuitant. • Self Plus One: A self-plus-one enrollment covers the enrolled employee or annuitant, plus one eligible family member. * Self and Family: A self-and-family enrollment covers the enrolled employee or annuitant and all eligible family members. Federal and U.S. Postal Service employees are eligible to enroll in FEDVIP

if they are eligible for the Federal Employees Health Benefits Program (FEHBP). Annuitants (regardless of FEHBP status) are eligible for FEDVIP.

VISION SERVICES Vision plans 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.

VISION PLANS All nationwide plans include international coverage. FEP Blue Vision FEP Blue Vision is offering an insured vision plan that is underwritten by the local Blue Cross/Blue Shield plans but will be administered by Davis Vision. The Blue Cross and Blue Shield Association (BCBSA) will contract with Davis Vision, a wholly owned subsidiary

of Highmark, Inc. (a licensee of BCBSA and a participating plan for FEP Blue Vision) to administer its offering under the program. Davis Vision, Inc. is one of the nation’s leading managed vision and eye-care providers, and presently serves more than 10,000 client groups covering nearly 35 million beneficiaries. • FEP Blue Vision offers flat-rate reimbursement in areas without adequate access. • Low-vision services are offered, and members can receive discounts on laser vision correction. • Offers an unconditional breakage warranty to repair or replace any plan frame or lens(es) for a period of one year from the date of delivery. • Coverage for elective contact lenses and medically necessary contact lenses is offered. • FEP Blue Vision’s High option provides out-of-network benefits based on a fee schedule. • There are no out-of-network benefits under FEP Blue Vision’s Standard option.

FEDVIP NationwideVision Rates BI-WEEKLY PREMIUM

Telephone & Web site

Plan Option

Self Only

FEP BlueVision

888-550-2583 fepblue.org

Standard

$3.91

$7.82

$11.73

$8.47

$16.94

$25.42

High

$4.91

$9.82

$14.73

$10.64

$21.28

$31.92

$3.13

$6.12

$9.11

$6.78

$13.27

$19.74

$4.38

$8.54

$12.73

$9.49

$18.51

$27.58

Standard

$4.28

$8.55

$12.83

$9.27

$18.53

$27.80

High

$6.06

$12.12

$18.19

$13.13

$26.26

$39.41

UnitedHealthcare Vision Plan

VSP (Vision Service Plan)

866-249-1999 Standard TTY: 800-524-3157 myuhcvision.com/fedvip High 800-807-0764 choosevsp.com

Self Self Plus One & Family

MONTHLY PREMIUM

Plan Name

Self Only

Self Self Plus One & Family

DECEMBER 2010 | NARFE

UnitedHealthcare Vision Plan UnitedHealthcare Vision is offering an insured vision plan. UnitedHealthcare Vision has been providing vision services for more than 40 years and currently has more than 17 million members nationwide. • UnitedHealthcare Vision will pay out-of-network, limited access and international benefits based on a published fee schedule. • Low-vision services are offered, and members can receive discounts on laser vision correction. • UnitedHealthcare Vision offers prosthetic eye replacement on a lifetime maximum basis. • Coverage for elective contact UHC3016 NARFE ad

8/12/10

10:43 AM

lenses and medically necessary contact lenses is offered. Vision Service Plan (VSP) VSP is offering an insured vision plan. VSP® is the nation’s largest notfor-profit eye-care benefits and services provider. With more than 55 million members, one in six people in the United States has VSP coverage. In 2009, Synovate, a global market research firm, ranked VSP “Highest in Overall Member Satisfaction” among national vision plans. • VSP will pay international benefits based on a published fee schedule. • VSP offers an Eye Health Management program, which complements disease management and wellness iniPage 1

tiatives, and concentrates on diseases such as diabetes, glaucoma and macular degeneration. • Coverage for elective contact lenses and medically necessary contact lenses is offered. • VSP provides an out-of-network benefit. • Members can receive discounts on laser vision correction.

DENTAL SERVICES Dental plans provide a comprehensive range of services. Services are divided by four categories, as follows: • Class A (Basic) services, which include oral examinations, prophylaxis, diagnostic evaluations, sealants and X-rays.

Enroll Today, And Get The Best of Both Worlds!

All participating providers meet or exceed established quality and licensing standards as certified by the National Committee for Quality Assurance (NCQA).

NARFE | DECEMBER 2010

FEDVIP Open Enrollment period: November 8—December 13, 2010 ®

www.myuhcvision.com/fedvip 1-866-249-1999

2011

Our national network of more than 30,000 providers is made up of both private practices and retail chains. This offers you the best of both worlds: the personal service of a private provider, along with the convenience, extended hours and selection offered by retail chain providers. And nine out of ten UnitedHealthcare Vision FEDVIP members would recommend our plan to family and friends.*

*UnitedHealthcare Vision Member Survey. UnitedHealthcare Vision® coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by Spectera, Inc., United HealthCare Services, Inc. or their affiliates.

PEN SEASON REPORT • Class B (Intermediate) services, which include restorative procedures such as fillings, prefabricated stainless steel crowns, periodontal scaling, tooth extractions and denture adjustments.

• 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 up to a 24-month waiting period. In areas where dental plans do not

FEDVIP Nationwide Dental Rates BI-WEEKLY PREMIUM

Plan Name

Rating Region

Self Only

Aetna PPO

High (In- and Out-ofNetwork benefits)

1 2 3 4 5

$13.45 $14.79 $15.73 $17.35 $18.82

$26.90 $29.59 $31.47 $34.69 $37.65

$40.35 $44.38 $47.20 $52.03 $56.47

$29.14 $32.05 $34.08 $37.59 $40.78

$58.28 $64.11 $68.19 $75.16 $81.58

$87.43 $96.16 $102.27 $112.73 $122.35

GEHA PPO

Standard (In- and Out-ofNetwork benefits)

1 2 3 4 5

$9.24 $10.14 $11.49 $12.39 $13.74

$18.49 $20.27 $22.97 $24.78 $27.49

$27.73 $30.41 $34.46 $37.17 $41.22

$20.02 $21.97 $24.90 $26.85 $29.77

$40.06 $43.92 $49.77 $53.69 $59.56

$60.08 $65.89 $74.66 $80.54 $89.31

GEHA PPO

High (In- and Out-ofNetwork benefits)

1 2 3 4 5

$14.66 $16.12 $18.26 $19.71 $21.87

$29.33 $32.23 $36.54 $39.43 $43.77

$44.02 $48.37 $54.81 $59.16 $65.66

$31.76 $34.93 $39.56 $42.71 $47.39

$63.55 $69.83 $79.17 $85.43 $94.84

$95.38 $104.80 $118.76 $128.18 $142.26

MetLife PPO

Standard (In- and Out-ofNetwork benefits)

1 2 3 4 5

$8.56 $9.26 $10.24 $11.36 $12.46

$17.15 $18.52 $20.47 $22.72 $24.93

$25.72 $27.77 $30.70 $34.08 $37.40

$18.55 $20.06 $22.19 $24.61 $27.00

$37.16 $40.13 $44.35 $49.23 $54.02

$55.73 $60.17 $66.52 $73.84 $81.03

MetLife PPO

High (In- and Out-ofNetwork benefits)

1 2 3 4 5

$15.32 $17.13 $18.65 $20.17 $22.57

$30.64 $34.27 $37.27 $40.32 $45.14

$45.92 $51.40 $55.92 $60.48 $67.70

$33.19 $37.12 $40.41 $43.70 $48.90

$66.39 $74.25 $80.75 $87.36 $97.80

$99.49 $111.37 $121.16 $131.04 $146.68

United Concordia PPO

High (In- and Out-ofNetwork benefits)

1 2 3 4 5

$13.77 $15.78 $17.14 $18.47 $19.90

$27.53 $31.55 $34.23 $36.91 $39.81

$41.30 $47.33 $51.36 $55.39 $59.70

$29.84 $34.19 $37.14 $40.02 $43.12

$59.65 $68.36 $74.17 $79.97 $86.26

$89.48 $102.55 $111.28 $120.01 $129.35

Self Self Plus One & Family

MONTHLY PREMIUM

Option

Self Only

Self Self Plus One & Family

DECEMBER 2010 | NARFE

have adequate provider access, the plans must provide payment based on the standard prevailing health care fees or pay benefits based on their plan allowance.

NATIONWIDE DENTAL PLANS All nationwide plans include international coverage. Aetna Plan Type: Preferred Provider Organization (PPO) Aetna has a long-standing relationship with the federal government, serving as the governmentwide medical indemnity carrier when the FEHBP was first established. It is currently one of the larger HMO plans participating in the FEHBP. It currently provides some dental services to all of its federal members as part of its medical plan. • Aetna will provide a single Highoption dental plan. • In addition to the in-network benefits offered, Aetna’s dental plan will offer out-of-network benefits based on the American Dental Association fee schedule, using the same payment percentages as for in-network benefits,

even in areas where access is adequate. • The Aetna plan has no deductibles. • Orthodontia will be covered after a two-year waiting period for dependents up to age 19. There is a $1,500 per person lifetime maximum on covered orthodontia services. • Aetna members will receive a free add-on discount vision plan. GEHA Plan Type: Preferred Provider Organization (PPO) Government Employees Health Association, Inc. (GEHA) is the third largest national health plan in the FEHBP. It has been in the program since it was first established. Regarding dental coverage, for more than 10 years, GEHA has offered a nationwide dental insurance plan, Dental Connection Plus. GEHA’s Dental Connection Plus plan currently provides coverage to more than 57,000 federal employees. • GEHA will provide two dental options, High and Standard. • Orthodontia will be covered after a two-year waiting period for dependents up to age 19. There is a $1,500 per person lifetime maximum on covered orthodontia services.

• Members enrolled in GEHA’s dental plan options will receive the same association benefits as other GEHA plan members, including hearing and vision discounts, at no additional cost. • In addition to in-network benefits, GEHA’s dental plan will offer out-ofnetwork benefits based on the American Dental Association fee schedule, using the same payment percentages as for in-network benefits, even in areas where access is adequate. MetLife Plan Type: Preferred Provider Organization (PPO) MetLife is the largest commercial dental insurance carrier in the United States, serving more than 60,000 companies. Ninety of the Fortune 500 companies have selected MetLife to administer their dental benefits. MetLife has a long-standing relationship with the federal government. • MetLife will provide two dental options, High and Standard. • Orthodontia will be covered after a two-year waiting period for dependents up to age 19. There is a $1,500 (in network) per person lifetime max-

FEDVIP Regional Dental Rates BI-WEEKLY PREMIUM

Option

Rating Region

Self Only

Humana/ CompBenefits

High (In-Network Benefits Only except for emergency services)

1 2 3 4 5

$9.88 $10.13 $10.69 $13.89 $14.63

$19.75 $20.26 $21.39 $27.77 $29.26

$29.63 $30.39 $32.08 $41.66 $43.89

$21.41 $21.95 $23.16 $30.10 $31.70

$42.79 $43.90 $46.35 $60.17 $63.40

$64.20 $65.85 $69.51 $90.26 $95.10

High

$17.53

$35.04

$52.57

$37.98

$75.92

$113.90

$4.50

$9.00

$11.85

$9.75

$19.50

$25.68

GHI PPO

Self Self Plus One & Family

MONTHLY PREMIUM

Plan Name

Self Only

Self Self Plus One & Family

(In and Out-ofNetwork Benefits)

Triple S Salud PPO

High (In-Network Benefits Only except for services rendered by orthodontists)

NARFE | DECEMBER 2010

PEN SEASON REPORT imum on covered orthodontia services under the Standard option and a $3,000 per person lifetime maximum under the High option. • MetLife’s High Option nonorthodontia annual maximum will increase to $5,000. • MetLife provides an out-of-network benefit at a lower percentage rate. • MetLife will have a deductible for preventative, intermediate and major out-of-network services. • MetLife will provide a benefit for implants. United Concordia Plan Type: Preferred Provider Organization (PPO) United Concordia Companies, Inc. is one of the largest dental benefit administrators in the United States. It is a subsidiary of Highmark, a Pennsylvania licensee of the Blue Cross and Blue Shield Association. United Concordia has administered dental benefit programs for Fortune 500 companies, the federal and state governments, and other well-known customers for more than 30 years. United Concordia serves the 1.7 million members in the TRICARE Dental Program (TDP), the largest fully insured dental program in the world. TDP is available to family members of all active duty uniformed personnel and to Selected Reserve and Individual Ready Reserve members and their families. • United Concordia will provide a single High option dental plan. • There is no deductible associated with United Concordia’s plan. • Orthodontia will be covered after a two-year waiting period for dependents up to age 19. There is a $1,500 per person lifetime maximum on covered orthodontia services. • Benefit design features additional coverage of implant prosthetics and

resin crowns. • The plan will provide an out-of-network benefit at a lower percentage rate.

REGIONAL DENTAL PLANS Triple-S Salud Plan Type: Preferred Provider Organization (PPO) Service Area: Puerto Rico Triple-S is Puerto Rico’s largest health insurance provider and has been a health insurance carrier under the FEHBP for more than 40 years. Approximately 93 percent of federal employees through the years have chosen Triple-S as their carrier. TripleS is affiliated with the Blue Cross and Blue Shield Association. • Orthodontia will be covered after a two-year waiting period for dependents up to age 19. There is a $1,500 per person lifetime maximum on covered orthodontia services. • Triple-S does not offer an out-ofnetwork benefit in areas that meet access standards. GHI Plan Type: Preferred Provider Organization (PPO) Service Area: All of New York state, as well as some ZIP codes in Pennsylvania, Connecticut and New Jersey. GHI has a long-standing relationship with the federal government, as a regional health insurance carrier. With more than half a million covered patients enrolled in GHI commercial dental programs, including 30,000 FEHBP employees and covered dependents with limited preventive dental care through GHI medical plans, GHI has had a significant New York regional presence in the dental marketplace. • There is an out-of-network benefit even in areas that meet access, which pays benefits up to a schedule maximum.

• Orthodontia will be covered after a one-year waiting period for dependents up to age 19. There is a $2,000 per person lifetime maximum on covered orthodontia services. • GHI’s nonorthodontia annual maximum will increase to $2,000. Humana/CompBenefits Plan Type: Preferred Provider Organization (PPO) Service Area: All of Alabama, Arkansas, Arizona, California, Colorado, District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Missouri, Mississippi, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia and most of Maryland. • Under Humana/CompBenefits, members will pay fixed co-payments for each service, regardless of the amount of the charge. • Humana/CompBenefits is the only plan without a waiting period for orthodontia. • Humana/CompBenefits has the highest per person annual maximum benefit of any FEDVIP provider: $10,000. • No out-of-network benefit in areas that meet the access standards.

Retirement Benefits Service Department

Clarification

he story “Health Reform Law Means Changes in FEHBP” on p.42 in the November issue has been confusing for some members.The requirement to enroll in family coverage mentioned in the fifth paragraph applies ONLY to those individuals now enrolled in a self-only option who want,under the new law, to cover their eligible children until age 26. DECEMBER 2010 | NARFE

Premium sound h a s n e v e r b e e n e a s i e r.

The Bose® Wave® music system. Selecting a sound system traditionally has required a difficult compromise. With conventional systems, if you make premium sound your priority, you have to deal with large speakers, stacks of equipment and plenty of wires to hook them up. Opt for small size and simplicity, and you sacrifice the sound.

Easy to use. A credit card-style remote lets you operate everything – a convenience you’ll appreciate when playing CDs or MP3 CDs, tuning into FM/AM radio or setting the clock and alarm. You can connect an additional audio source, so enjoying lifelike sound from your TV or MP3 player couldn’t be simpler. You also can add an optional Multi-CD Changer to enjoy your favorite music for hours. And with its small and elegant design, the Wave® music system fits in just about anywhere: your living room, kitchen, bedroom, wherever you want better sound.

Meet the Bose Wave® music system. It delivers all the pleasures of premium sound from a compact system without the traditional compromises or limitations. Rich Warren of the News-Gazette says it “will flat out seduce you.” And Forbes FYI reports that “you’ll think you’re listening to a…sound system that costs five times more.”

Easy to try. Use our 30-day, risk-free trial to experience the Wave® music system in your home. Listen to your favorite music, try it in different rooms and hear what you’ve been missing.

Easy to enjoy. The Wave® music system provides a room full of Bose quality sound from an all-in-one system that requires little space and is delightfully simple to use. There are no wires to hook up, no confusing buttons or dials to adjust. Just plug it in and hear the kind of sound that you may have only thought possible from a much larger system. In fact, David Novak, the Gadget Guy, says, “It can easily replace whatever component system you currently have.”

Easy to order. Simply choose your favorite color: Platinum White, Graphite Gray or Titanium Silver. When you call, ask about making 12 easy payments, with no interest charges from Bose.* Order your system with the Multi-CD Changer by December 31, 2010, and save $100. When your Wave® music system arrives, just take it out of the box, plug it in and slip in your favorite CD. Then sit back and experience the kind of performance that has made Bose the most respected name in sound. Now what could be easier than that?

SAVE $100 when you order the Wave® music system with our Multi-CD Changer by December 31, 2010.

To order or learn more:

1-800-925-9738, ext. TW743

www.Bose.com/WMS

*Bose payment plan available on orders of $299-$1500 paid by major credit card. Separate financing offers may be available for select products. See website for details. Down payment is 1/12 the product price plus applicable tax and shipping charges, charged when your order is shipped. Then, your credit card will be billed for 11 equal monthly installments beginning approximately one month from the date your order is shipped, with 0% APR and no interest charges from Bose. Credit card rules and interest may apply. U.S. residents only. Limit one active financing program per customer. ©2010 Bose Corporation. Patent rights issued and/or pending. The Wave® music system’s distinctive design is also a registered trademark of Bose Corporation. Financing and savings offers not to be combined with other offers or applied to previous purchases, and subject to change without notice. If the Wave® music system is returned, the Multi-CD Changer must be returned for a full refund. Offers are limited to purchases made from Bose and participating authorized dealers. Offer valid 11/1/10-12/31/10. Risk free refers to 30-day trial only, requires product purchase and does not include return shipping. Delivery is subject to product availability. Quotes reprinted with permission: Thomas Jackson, Forbes FYI, Winter/04.

How do you maximize your FEP Service Benefit Plan hearing aid benefit? Add the savings of the Blue365® discount program! (TruHearing is a BCBS PPO Provider)

TruHearing is a national vendor that provides discounts on hearing aids through the Blue365 program. Here is an example of your potential savings for a top technology hearing aid with 16 channels, 5 memories, noise & wind reduction and speech enhancement features: Average retail price:

$2,450

TruHearing (private label) price through Blue365: FEP Service Benefit Plan covered benefit: Your out-of-pocket cost:

$1,995 $1,000 $995*

TruHearing offers 64 models – both brand name and private label – from four of the leading manufacturers: Siemens, ReSound, Unitron and Rexton. Discounts of 30-60% vary depending on manufacturer and model. TruHearing contracts with 1,400 hearing professional nationwide. Contact TruHearing to schedule a free hearing screening with a contracted hearing professional near you.

(877) 360-2432 ®

Call TruHearing for: Free screening (you must call TruHearing to schedule your appointment) Free copy of “The Guide to Better Hearing” DVD Free batteries for 1-year with purchase $25 rebate per hearing aid unit on your first purchase under this TruHearing discount program * Hearing aids are a covered benefit under the FEP Service Benefit Plan for adults age 22 and over, limited to $1,000 per hearing aid per ear per 36-month period. Children, up to age 22, are limited to $1,000 per ear per calendar year. Member cost sharing applies. The Blue Cross and Blue Shield Association is an association of independent, locally operated, licensed Blue Cross and Blue Shield companies. Blue365® offers access to savings on items that you may purchase directly from independent vendors, which may be different from items that are covered under your Service Benefit Plan policy or any other applicable federal healthcare program. For hearing aids, certain hearing tests, and vision services, please remember to use your Service Benefit Plan benefits. To find out what is covered under your policy, contact the 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. In addition, they 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 Service Benefit Plan, nor BCBSA, or 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 items and vendors made available through Blue365, at any time.

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I am smiling because TruHearing saved me money on top-of-the-line hearing aids. My daughter is smiling because she doesnâ&#x20AC;&#x2122;t have to repeat herself, my friends are smiling because I can hear them at restaurants, my pastor is smiling because I participate better in meetings and even my neighbors are happier since I have turned down the volume on my TV. Give TruHearing a call and put smiles on lots of faces!

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(877) 360-2434 www.truHearing.com

RESCRIPTION DRUG GUIDE 2011

f you are covered by a fee-forservice plan under the Federal Employees Health Benefits Program (FEHBP), save this article for future reference. We recommend that you refer to it whenever you fill new prescriptions or refill current prescriptions. We also recommend that you keep this information with the current version of your health plan brochure so that you also can refer to the plan’s specific rules on prescription drugs. Prescription drugs are important because they prolong life and enhance the quality of life. Be sure to tell your doctor about all of the medications that you take. When your doctor writes prescriptions for you, verify whether the prescription is written for 30, 60 or 90 days, with (or without) refills. If the doctor intended to write a prescription for 90 days with refills but actually wrote it for 30 days with refills, FEHBP plans’ mail service pharmacies will fill the prescription as written and charge full co-payments for the less-than-90-day supply of prescription drugs. Check your prescriptions before you leave your doctor’s office. Prescriptions can be filled by health plans through plans’ preferred retail pharmacies, nonpreferred retail pharmacies and a plan’s mail order service. The plans charge coinsurance and/or co-payments for prescription drugs when they are purchased through any of these sources. Some plans provide prescription drug plan benefits even if the plan’s annual deductible is not met. Other plans may have a specific annual deductible that must be met before the plan begins to pay prescription drug benefits.

Health plans will substitute available generic equivalent drugs for brand name drugs for prescriptions submitted to local pharmacies and mail order services, unless the prescribing physician indicates that the patient is to receive only the brand name medication. This is usually accomplished when the physician writes the prescription for the brand name drug and indicates that the prescription should be “dispensed as written” (DAW). To keep prescription drug benefit costs down for the plans, some are reducing out-of-pocket costs for generic drugs and raising them for brand name drugs. This will make prescription drugs more costly for enrollees who need life-saving and lifeextending medications, which are usually brand name specialty drugs. You also will see that some plans have capped the yearly amount of out-of-pocket expenses for prescription drugs to keep enrollees who need the expensive brand name drugs from possible financial hardship. Enrollees who are covered by Medicare Part A and Part B may note that some plans waive their own deductibles, coinsurance and co-payments for hospital and medical services. But these waivers do not apply to the prescription drug co-payments and/or coinsurance. While there are no plans that waive prescription drug coinsurance and co-payments for Medicare-eligible enrollees, some plans will charge lower coinsurance

and co-payment rates for enrollees who are covered by Medicare Part A and Part B. In addition, there are some plans that charge Medicare enrollees the same coinsurance and co-payments as non-Medicare-eligible enrollees in one option, while charging Medicare enrollees smaller coinsurance and/or co-payment amounts than non-Medicare enrollees in the plan’s other option. Usually, patients will fill orders for short-term prescription drugs, such as antibiotics, at the local pharmacy. They will use mail order services for maintenance drugs, such as medications used to treat high blood pressure or high cholesterol, etc. It is wise to compare the prices of medications at the local pharmacies with the cost of obtaining the medications through mail order services. Many times, the cost of filling a prescription at a local pharmacy is less than the co-payment for using a mail order service. Some plans charge the full mail service copayment even though the actual cost of the prescription drug is less than the co-payment; other plans only charge the cost of the prescription drug if the actual cost of the drug is less for the mail service pharmacy than the co-payment. In other words, DECEMBER 2010 | NARFE

Limited Availability Less Than 400 290 Ounces of Tanzanite Remain in This Special Purchase.

2 carats of Genuine Tanzanite Save $700!

African Gem Cutter Makes $2,689,000 Mistake...Will You? T

The tanzanite gem cutter missed his chance to hit the jeweler’s jackpot...and make history. Would you have made the same mistake then? Will you make it today? In the decades since its discovery, tanzanite has become one of the world’s most coveted gemstones. Found in only one remote place on Earth (in Tanzania’s Merelani Hills, in the shadow of Mount Kilimanjaro), the precious purple stone is 1,000 times rarer than diamonds. Luxury retailers have been quick to sound the alarm, warning that supplies of tanzanite will not last forever. And in this case, they’re right. Once the last purple gem is pulled from the Earth, that’s it. No more tanzanite. Most believe that we only have a few years supply left, which is why it’s so amazing for us to offer this incredible price break. Some retailers along Fifth Avenue are more than happy to charge you outrageous prices for this rarity. Not Stauer. Staying true to our contrarian nature, we’ve decided to lower the price of one of the world’s rarest and most popular gemstones.

Our 2-Carat Sunburst Tanzanite Ring features marquise-cut gems set dramatically in gorgeous sterling silver. Each facet sparkles with the distinct violet-blue hue of the precious stones. Behind the shine you’ll find that the exquisite silverwork of the setting calls to mind the detailed treasures being produced by Europe’s finest jewelers. This is a ring designed to impress and it does not disappoint. Now is the point where opportunity knocks. If you open that door today, you can own this spectacular ring for less than $100. If you wait? We can’t say for sure.

Your satisfaction is completely guaranteed. For our client-friendly approach, Stauer has earned a rare A+ rating from the Better Business Bureau, a rating we wish to keep. So, of course, your satisfaction is 100% guaranteed. If you are not completely aglow with the Sunburst Tanzanite Ring, send it back within 30 days for a prompt and courteous refund. But, please don't wait, our supply is dropping rapidly. JEWELRY SPECS: – 2 ctw genuine tanzanite – .925 sterling silver setting – Ring sizes 5–10

Sunburst Genuine Tanzanite Ring (2 ctw)—$795 Now $95 +S&P Save $700 Call now to take advantage of this limited offer.

1-888-201-7112 Promotional Code TZR184-01

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Stauer

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Smar t Luxuries—Surprising Prices

Burnsville, Minnesota 55337

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his story breaks my heart every time. Allegedly, just two years after the discovery of tanzanite in 1967, a Maasai tribesman knocked on the door of a gem cutter’s office in Nairobi. The Maasai had brought along an enormous chunk of tanzanite and he was looking to sell. His asking price? Fifty dollars. But the gem cutter was suspicious and assumed that a stone so large could only be glass. The cutter told the tribesman, no thanks, and sent him on his way. Huge mistake. It turns out that the gem was genuine and would have easily dwarfed the world’s largest cut tanzanite at the time. Based on common pricing, that “chunk” could have been worth close to $3,000,000!

RESCRIPTION DRUG GUIDE 2011

do not expect the mail service pharmacy to charge less than the co-payment because the local pharmacy has the drug at a lower price. Some plans have limitations on the amount and frequency of dispensing prescription drugs. Plan members should be aware of those limitations

and should also be aware of plans that have prior-approval requirements before a prescription can be filled. Often, it is no longer simply a matter of getting a signed prescription from a doctor. And the general rule for most plans is that refills can be obtained when 75 percent of the current

supply is used up. With some plans’ co-payments for brand name drugs increasing on January 1, check your current prescription level to see if you can order a refill before the end of the year and avoid any increase.

Retirement Benefits Service Department

Blue Cross and Blue Shield (BC/BS) Standard Option SOURCE Preferred Retail Pharmacy

PATIENT PAYS The patient pays 20 percent of the plan allowance for Tier 1 (generic) drugs, and 30 percent for Tier 2 (preferred brand name),Tier 3 (nonpreferred brand name) and Tier 4 (specialty) drugs. Non-Preferred Retail Pharmacy The patient pays 45 percent of the plan allowance, plus any difference between the plan’s allowance and the amount of the pharmacy bill. Mail Service Prescription Drug For doctor prescriptions of more than 21 days up to 90 days, patient will pay $10 Program for a generic prescription drug and $70 for the first 30 preferred brand name, nonpreferred brand name and specialty prescriptions filled per calendar year; $50 per brand name prescription/refill thereafter. Sources other than the Preferred: 15 percent of the plan allowance; participating/member: 35 percent of Mail Service Program, a the plan allowance; nonparticipating/nonmember: 35 percent of the plan Retail Pharmacy or an allowance plus any difference between the allowance and the billed amount. Internet Pharmacy (Calendar-year deductible applies to all of the above.) NOTE: Enrollees need to be aware of the plan's prior-approval program for certain prescription drugs. Review the plan's brochure for more information.The plan also has a Patient Safety and Quality Monitoring Program (PSQMP). Under PSQMP, certain drugs must be recertified by the prescribing physician after the initial fill has been used up.

Basic Option SOURCE PATIENT PAYS Preferred Retail Pharmacy For a first-time purchase of a new prescription up to a 34-day supply, the patient (including Preferred Internet) pays a co-payment of $10 for Tier I (generic) drugs; a co-payment of $40 for Tier 2 (preferred brand name) drugs; a co-payment of 50 percent of the plan allowance for Tier 3 (nonpreferred brand name) drugs; and a co-payment of $40 for Tier 4 (specialty) drugs. For refills up to a 90-day supply, the patient pays a $10 co-payment for each 34-day supply of Tier I (generic) drugs – or a $30 co-payment for a 90-day supply; a $40 copayment for each 34-day supply of Tier 2 (preferred brand name) drugs – or a $120 co-payment for a 90-day supply; and 50 percent of the plan allowance for a 34-day supply of Tier 3 (nonpreferred brand name) drugs, with a minimum payment of $50 – or 50 percent of the cost, with a minimum payment of $150 for a 90-day supply. For Tier 4 (specialty) drugs, the patient pays a $40 co-payment for a 34-day supply and $120 for a 90-day supply. Non-Preferred Retail Pharmacy Patient pays all charges. Mail Service Prescription No benefit. Sources Other Than Retail Preferred: 30 percent of the plan allowance; 100 percent for participating/member Or Internet Pharmacies or nonparticipating/nonmember.

DECEMBER 2010 | NARFE

Government Employees Health Association (GEHA) High Option SOURCE Network Retail Pharmacy

PATIENT PAYS The patient pays the following for the initial fill and the first refill (not to exceed a 30-day supply): $5 for a generic drug, 25 percent for a single-source* brand name drug up to a maximum of $150 for up to a 30-day supply (refills for more than a 30day supply will be 25 percent of the single source brand name drug up to the maximum of $350), and $5 plus the difference in the cost of a generic drug and the brand name drug for multi-source** brand name drugs. For all subsequent refills, the patient pays the greater of 50 percent of the cost of the drugs or the amount described above. Non-Network Retail Pharmacy The patient pays the following for the initial fill and the first refill (not to exceed a 30-day supply): $5 for a generic drug, 25 percent for a single-source* brand name drug up to a maximum of $150 for up to a 30-day supply (refills for more than a 30day supply will be 25 percent of the coinsurance up to the maximum of $350), and $5 plus the difference in the cost of a generic drug and the brand name drug for multi-source** brand name drugs. For all subsequent refills, the patient pays the greater of 50 percent of the cost of the drugs or the amount described above. Medco By Mail All co-payments are for up to a 90-day supply. The co-payment is $15 for a generic drug, 25 percent of the cost of single-source* brand name drugs, up to a maximum of $350 for up to a 90-day supply; $15 plus the difference in the cost of the generic drug and the brand name drug for multi-source** brand name drugs.

When Medicare Part A and Part B are primary for the enrollees â&#x20AC;&#x201C; High Option SOURCE Network Retail Pharmacy

PATIENT PAYS The patient pays for the initial fill and the first refill (not to exceed a 30-day supply): $5 for a generic drug, 20 percent for a single-source* brand name drug up to a maximum of $150 for a 30-day supply (refills for more than a 30-day supply will be 20 percent of the single source brand name drug up to the maximum of $350), and $5 plus the difference in the cost of the generic drug and the cost of the brand name drug for multisource** brand name drugs for the initial fill and the first refill. For all subsequent refills, the patient pays the greater of 50 percent of the cost of the drugs or the amount described above. Non-Network Retail Pharmacy The patient pays for the initial fill and first refill: $5 for a generic drug, 20 percent for a single-source* brand name drug up to a maximum of $150 for a 30-day supply, and $5 plus the difference in the cost of the generic drug and the cost of the brand name drug for multi-source** brand name drugs. For all subsequent refills, the patient pays the greater of 50 percent of the cost of the drugs or the amount described above. Medco By Mail The patient pays for up to a 90-day supply: $10 for a generic drug, 15 percent for a single-source* brand name drug up to a maximum of $350 for up to a 90-day supply, and $10 plus the difference in the cost of the generic drug and the brand name drug for multi-source** brand name drugs. *A single-source brand name drug is a drug for which there is no approved generic equivalent drug. **A multi-source brand name drug is a drug for which there is an approved generic equivalent. If the patient or doctor chooses a brand name drug for which a generic drug exists, the patient will pay the generic drug co-payment and the difference between the cost of the brand name drug and the cost of the generic drug, unless the patientâ&#x20AC;&#x2122;s physician has provided clinical support for the necessity of prescribing the brand name drug over the generic drug. This will require preauthorization for the substitution of the brand name drug. GEHA has prior-approval and quantity-allowances programs for certain prescription drugs. Check with the plan to learn more about these programs and how they apply to you.

NARFE | DECEMBER 2010

RESCRIPTION DRUG GUIDE 2011 Government Employees Health Association (GEHA) Standard Option (all enrollees, including Medicare-eligible enrollees)

SOURCE Network Retail Pharmacy

PATIENT PAYS The patient pays (for the initial amount prescribed, for up to a 30-day supply): $5 generic/50 percent up to a $200 maximum for brand name. Brand name fills over a 30-day supply are subject to 50 percent coinsurance up to a maximum of $500. Non-Network Retail Pharmacy The patient pays (for a 30-day supply): $5 generic/50 percent up to a $200 maximum for brand name; 50 percent coinsurance up to $500 for fills greater than 30 days and any difference between the plan’s allowance and the cost of the drug. Medco By Mail The patient pays for up to a 90-day supply: $15 generic/50 percent brand name up to a $500 maximum.

High Deductible Health Plan Option* SOURCE PATIENT PAYS Network Retail Pharmacy For a 30-day supply, the patient pays 25 percent of the plan allowance. Non-Network Retail Pharmacy The patient pays 25 percent of the network price and any difference between the plan allowance and the cost of the drug. Medco By Mail The patient pays 25 percent of the plan allowance. *Must meet the plan’s deductible

American Postal Workers Union (APWU) Health Plan High Option SOURCE PATIENT PAYS Network Retail Pharmacies and The patient pays $8 generic/25 percent of brand name with an $8 minimum Network Retail–Medicare coinsurance. Non-Network Retail Pharmacies The patient pays 50 percent of the cost with an $8 minimum coinsurance. and Non-Network Retail– Medicare Mail Order and The patient pays $15 per generic/25 percent of brand name with a $12 minimum Mail Order Medicare coinsurance.

Consumer-Driven Option SOURCE PATIENT PAYS Network Retail Pharmacies The patient pays a 25-percent charge with a minimum of $10 per prescription. and Network Retail–Medicare Mail Order and The patient pays a 25-percent charge with a minimum of $15 per prescription. Mail Order–Medicare NOTE: Prescription drug benefits have a maximum per-prescription limit of $200 for a 30-day supply, $400 for a 60day supply and $600 for a 90-day supply.

DECEMBER 2010 | NARFE

Presenting NARFE?s

Limited Edition 90th Anniversary Book NARFE’s history is closely tied to the origins of the civil service system. Since the Association’s humble beginnings in 1921, when 14 retired civil servants met to discuss the economic plight of federal retirees, NARFE has made remarkable achievements in preserving and improving benefits for federal employees, retirees and their survivors.

Only $10

NARFE’s 90th Anniversary book chronicles the Association’s continuous fight to protect your earned benefits. Find out just how vital NARFE’s efforts have been throughout its 90 years of serving you. Purchase your copy of NARFE’s 90th Anniversary book and learn about NARFE’s remarkable achievements – and the Association’s continuing work on your behalf.

Order your copy of NARFE’s 90th Anniversary Book today! Clip and mail to: NARFE 90th Book, 606 N. Washington Street, Alexandria, VA 22314-1914 Price includes

Name __________________________________________________________________ shipping & handling Number of Books: Address _______________________________________________________________ City_________________________________________ State______ ZIP___________

____ x $10 = ___________

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

❏ Charge

to my credit card❏ MasterCard

❏ Visa

❏ Discover

❏ AMEX

Tax (if applicable) = ________ Virginia residents: Add 5% tax ($.50 per book)

Card #_________________________________________________________________ Exp. Date ________ / _______ (mm)

(yy)

Name on card (print) __________________________________________________ Total cost =_____________

MAIL ORDER ONLY—NO PHONE ORDERS—make checks payable to NARFE NARFE | DECEMBER 2010

RESCRIPTION DRUG GUIDE 2011 Mail Handlers Benefit Plan Standard Option

SOURCE Network Retail Pharmacies Or Prescriptions Filled by Foreign Pharmacies Non-Network Retail Pharmacies/ Paper Claims for Prescriptions Filled at a Retail Pharmacy Mail Order and Mail Order–Medicare

PATIENT PAYS The patient pays $10 per generic drug, 30 percent of the plan allowance per preferred brand name drug, 50 percent per nonpreferred brand name drug and $150 per specialty drug. With Medicare, the patient pays the same co-payments. The patient pays 50 percent of the plan’s allowance for the prescription and any difference between the plan’s allowance and the amount billed by the non-network pharmacy. The patient pays $15 per generic, $80 per preferred brand, $120 per nonpreferred brand name drug and $400 per specialty drug.

Value Option SOURCE PATIENT PAYS Network Retail Pharmacies The patient pays $10 per generic drug/50 percent of the plan’s allowance for all others. Or Prescriptions Filled by Foreign Pharmacies Non-Network Retail Pharmacies/ The patient pays all charges. Paper Claims for Prescriptions Filled at a Retail Pharmacy Mail Order The patient pays $30 per generic drug/ 50 percent of the plan’s allowance for all others. NOTE: Medicare retail and mail-order benefits will be paid as above.

High Deductible Health Plan Option* SOURCE Network Retail Pharmacies Or Prescriptions Filled by Foreign Pharmacies Non-Network Retail Pharmacies Mail Order and Medicare Retail and Mail Order

PATIENT PAYS The patient pays $10 per generic drug, $25 per preferred brand name drug and $40 per nonpreferred brand name drug for up to a 30-day supply. Non-network pharmacies are not covered. The patient pays $20 per generic drug, $50 per preferred brand and $80 per nonpreferred brand name drug for up to a 90-day supply.

* Must meet the plan’s deductible of $2,000 for self-only; $4,000 for family.

National Association of Letter Carriers (NALC) Health Benefit Plan SOURCE PATIENT PAYS Network Retail Pharmacies The patient pays 20 percent of the cost for generic, 30 percent for brand name. Netwrk Retail Pharm.–Medicare The patient pays 10 percent of the cost for generic, 20 percent for brand name. Non-Network Retail Pharmacies The patient pays 45 percent of the plan’s allowance for the prescription, and the difference between the plan’s allowance and the billed amount. Non-Network Retail Pharmacies– The patient pays 45 percent of the plan's allowance, and the difference between the Medicare plan’s allowance and the billed amount. Mail Order The patient pays $8 per generic/$43 per brand name drug for up to a 60-day supply. The patient pays $12 per generic/$65 per brand name drug for up to a 90-day supply. The patient pays $5 for NALCSelect generic for a 90-day supply. The patient pays $7.99 for NALCPreferred generic drugs for up to a 90-day supply. Mail Order–Medicare The patient pays $7 per generic/$37 per brand name drug for up to a 60-day supply. The patient pays $10 per generic/$55 per brand name drug for up to a 90-day supply. The patient pays $4 for NALCSelect generic for a 90-day supply. The patient pays $4 for NALCPreferred generic for up to a 90-day supply.

DECEMBER 2010 | NARFE

Join

NARFE

Who can join?

Today!

To apply:

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

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

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

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

Active employee Former spouse Former employee

2. Also enroll my spouse __________________________

www.narfe.org

Contact Information:

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

full name

3. Please enroll me in NARFE chapter ______________

Street Address

4. __________ $33 x __________ Membership Fee # of People Per Person Enrolling

City/State/ZIP

= __________ Total Payment

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

Credit Card Information: MasterCard Card type: Discover

VISA AMEX

Card no. ___________________________________________

Apt./Unit

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

Expiration Date ________________ (MM)

(YY)

Name on Card (Print) ________________________________ Signature ____________________________ Date __________ NARFE | DECEMBER 2010

MAIL TO:

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

1Q 49

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

ACTIVE EMPLOYEES FEHBP INTO RETIREMENT QUESTION: I am under the Civil Service Retirement System (CSRS), and my wife is a Federal Employees Retirement System (FERS) employee. She is currently covered under my Federal Employees Health Benefits Program (FEHBP) plan. Prior to retirement, we want to have her enroll in her own FEHBP plan. Will she be able to continue coverage for both of us when she retires? Would the cost be about the same as if I had provided our coverage as a retired CSRS employee? Response: Your wife will be able to continue her FEHBP enrollment if she has been either covered as a dependent under your enrollment or enrolled herself continuously for the five years im-

mediately preceding her retirement. There is no difference in the premiums paid by employees or retirees covered by the CSRS and FERS.

TRICARE & CONTINUOUS COVERAGE RULE QUESTION: I am retiring on January 30, 2011. I retired from the military and have been using my TRICARE For Life benefits. I recently received a letter from my doctor stating that he will no longer accept TRICARE or Medicare.I want to carry my Federal Employees Health Benefits Program (FEHBP) plan into retirement. Does my use of TRICARE qualify for the five-year rule? Response: Yes. Continuous coverage under the military TRICARE system during your years preceding retirement counts the same as coverage under the FEHBP. But you, nevertheless, must be enrolled in the FEHBP prior to your retirement, or you will not be able to have FEHBP coverage as a retiree.

SPOUSE FEHBP COVERAGE QUESTION: I plan to retire from the federal government in January 2011 after 42 years of service.Currently, my wife is insured through her employer. Her health insurance will not carry over into retirement,and we want to add her to my retirement health insurance. What do I need to do?

FEHBP COVERAGE & SPOUSE’S DEATH QUESTION: In order to carry my health insurance coverage into retirement, I understand that I must have at least five years of continuous coverage under the Federal Employees Health Benefits Program (FEHBP) or have been covered since my first opportunity to enroll. If a federal employee is covered under his or her spouse’s FEHBP plan,and if the enrolled spouse dies,is the employee still covered? Response: If the deceased spouse is enrolled in a family option, and the employee is eligible for a survivor’s annuity, then the employee would continue to be covered by the FEHBP. However, it would be financially advantageous for the employee to enroll on his or her own in the event the employee lost coverage under another’s enrollment because active employees can take advantage of premium conversion.

MEDICARE QUESTION: Why does Medicare become your primary insurer when you reach age 65? I am an active federal employee with coverage under the Federal Employees Health Benefits Program (FEHBP) but plan to retire soon.

QA &

Response: As an employee, you can change to family enrollment during this Open Season to have her covered when you retire in January. You must do that through your agency. This year’s federal benefits Open Season began November 8 and runs through December 13.

Response: The reason that Medicare becomes primary is that the law requires it. The law applies to anyone who is retired and enrolled in Medicare. It does not apply to those age 65 or older who are still employed. In those cases, any private or public health insurance they have remains primary and Medicare secondary. However, while you have already paid for Medicare Part A (Hospital Insurance) through payroll deduction, whether or DECEMBER 2010 | NARFE

not you enroll in Part B (Medical Insurance) is optional. If you don’t enroll in Part B, your FEHBP plan will provide your medical coverage. Check your FEHBP plan brochure on how your claims will be handled in either case.

TAX ON PREMIUMS? QUESTION: I heard that the new health care law requires all federal employees to pay income tax on the government-paid portion of our health care plan’s cost.Is this true? Response: No. What is true is that, beginning in 2018, a 40-percent tax will be levied annually on the health insurance carrier for plans that cost more than $10,200 per individual or $27,500 per family. The tax will be on any coverage that exceeds the limit. Those fig-

NARFE | DECEMBER 2010

ures will be based on the combined contributions of enrollees and the government. To get you accustomed to what those total costs are, beginning in 2011, they will be included on W-2 forms for employees and 1099-R forms for retirees.

RE-ENROLL IN FEHBP? QUESTION: I am age 36 and plan to retire at age 40.I will have 10 years of federal service, during which time I will have been continuously enrolled in the Federal Employees Health Benefits Program (FEHBP). I know that I will not be eligible for my annuity until around age 60, which means I will not be eligible for FEHBP coverage from age 40-60. However, once I reach age 60 and start col-

lecting my annuity,will I be eligible to re-enroll in the FEHBP,or do I have to be working up until the time I am eligible for my annuity? Response: Under the scenario you have laid out, no, you won’t be able to re-enroll. No one who leaves government and later applies for a deferred annuity at age 62 is eligible to re-enroll in the FEHBP. But you are most likely under the Federal Employees Retirement System (FERS), and, if you meet the minimum retirement age + 10 requirements when you leave government, you may elect a “postponed” annuity. In that case, if you were continuously covered for the five years immediately prior to your retirement, you may then re-enroll when you decide to start drawing your annuity.

Questions & Answers NARFE SERVICE OFFICERS are available to answer questions and to BUYOUT PAYBACK? QUESTION:I plan to retire this year and have accepted a buyout from my organization. I need to continue working part time. I know that I cannot seek employment with another federal agency or contractor within five years without having to repay the buyout money. Does this rule apply to all other jobs, such as working for public school systems or state government offices? Response: The repayment requirement only applies to federal jobs. It doesn’t apply to employment with state or local governments, or in the private sector.

FERS SUPPLEMENT QUESTION: I am under the Federal Employees Retirement System (FERS). Why does a Social Security rule apply to our retirement? I have worked for more than 30 years,and I should receive my retirement check without any penalties or limits.

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

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

Response: The Civil Service Retirement Spouse Equity Act of 1984 requires the provision of a full survivor’s annuity to your spouse unless you agree in writing to provide less than that (or nothing at all). As you suspected, there is no general rule guiding a decision in making this election. You both will have to estimate your future financial needs should your spouse die and base your decision on that.

USE OR LOSE LEAVE QUESTION: I am under the Civil Service Retirement System (CSRS) and plan to retire on January 1, 2011. Will I get paid for my annual leave if I retire on this date, or do I have to retire before January 1 so I can get paid for any use or lose annual leave.

Response: Since your FERS annuity cannot be reduced if you continue to work, you must be talking about the FERS special retirement supplement. The FERS supplement approximates the Social Security benefit you earned while employed under FERS. As such, it follows the same rules that apply to a Social Security benefit. If you exceed the Social Security earnings limit, your supplement will be reduced by $1 for every $2 you earn over the limit. In 2010, the earnings limit is $14,160.

Response: You will be paid for your accrued annual leave if you retire on January 1, 2011. You have up until the end of the first pay period in 2011 to use any excess annual leave. That will probably be January 2. You’ll be on the annuity roll effective January 2, and your first month’s annuity will be payable at the end of the month under CSRS rules.

SURVIVOR’S BENEFITS QUESTION: My husband and I are both 30-year Civil Service Retirement System employees. We have attended several retirement seminars and hear differing views as to whether we should both choose full survivor’s benefits at time of retirement. Is there a general rule on this issue?

MILITARY ACADEMY CREDIT QUESTION: I am receiving retirement pay after 27 years in theArmy.I will soon be obtaining a GS position in federal civilian service. Does my four years of time as a student at the U.S. Military Academy at West Point count as creditable time for leave accrual purposes?

Response: Yes. Service as a cadet at the U.S. Military Academy is creditable time and, therefore, can be used to base annual leave accrual as a civilian employee.

RETIREES DISABILITY RETIREE SURVEYS QUESTION:In the September issue of NARFE magazine’s “Questions & Answers” section, one of the responses stated that individuals receiving a disability annuity could be restored to earning capacity if they earned 80 percent or more of the current pay for their previous position; but after age 62,there would be no effect on their disability retirement,no matter how much was earned. Shouldn’t the response have stated at age 60,not 62? Response: You are correct. After age 60, the Office of Personnel Management no longer surveys disability retirees for earnings limitation purposes. Thanks for pointing out the mistake.

WEP QUESTION: My father worked for the U.S. Postal Service for 36 years. Due to health issues,he retired on disability, with his annuity commencing in September 1991.His wife died in June and was receiving Social Security. When he applied for survivor’s benefits, it took several months for the Office of Personnel Management to get back to the Social Security Administration (SSA).SSA made the decision DECEMBER 2010 | NARFE

that the survivor’s benefits fell under the Windfall Elimination Provision (WEP). We are not sure why this decision was made.My father was eligible to receive a disability pension prior to December 1982,and his wife was selfemployed with net earnings generally equal to his. Is he under theWEP because he wasn’t eligible to receive a regular pension before December 1982? Response: The WEP applies to anyone who receives a disability annuity from a retirement system into which he or she didn’t pay Social Security taxes and began receiving that annuity after 1985. You can get detailed information on the WEP by calling the SSA at 410-9652039 and requesting a copy of SSA publication 05-10045, Windfall Elimination Provision. You also can download a copy by going to the NARFE Web site, www.narfe.org, and clicking on Retirement and Insurance Benefits in the left panel of the Main Home Page.

ceiving an annuity from a retirement system in which you didn’t pay Social Security taxes, you will be subject to the Government Pension Offset (GPO). The GPO will reduce any spousal Social Security benefit to which you may be entitled by $2 for every $3 you receive in your CSRS annuity. While bills have been introduced in Congress to modify or eliminate the GPO, no action has as yet been taken to enact them into law.

COMMON-LAW WIFE QUESTION: My wife died 15 years ago.How do I assign survivor’s benefits to my new common-law wife? Response: For retirement-related benefits, you can submit new designation of beneficiary forms: SF 2823 for Federal Employees’ Group Life Insurance; SF

2808 for the Civil Service Retirement System; or SF 3102 for the Federal Employees Retirement System; and TSP-3 for your Thrift Savings Plan investments. To elect a survivor’s benefit for a spouse acquired after retirement, you must notify the Office of Personnel Management (OPM) within two years after the remarriage. By regulation, a marriage is one that is recognized in law of the jurisdiction with the most significant interest in the marital status. There are specific requirements for electing a spouse you claim as a common-law spouse. OPM will provide you with information on the documentation that is required when you contact OPM. Also, some of these benefits may only be available in a state that recognizes common-law marriages. Check with OPM to make sure

TAX ON ANNUITIES? QUESTION:I am a volunteer helping retirees with their income taxes. On form 1099-R, Box 2A, the taxable amount is unknown. How do I determine how much of the annuity is taxable? Response: While most of the annuity will be taxable, a portion will not. To find out how much of it will be tax-free, go to the IRS Web site at www.irs.gov and download a copy of IRS publication 721, Tax Guide to U.S. Civil Service Retirement Benefits.

GPO QUESTION: I understand that, because I am a Civil Service Retirement System (CSRS) retiree, if my spouse should die,I cannot get any of his Social Security. Why this is the case? Response: Because you will be reNARFE | DECEMBER 2010

Questions & Answers

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QUESTION: My wife was previously married, and a portion of her retirement was going to her ex-husband. After we married, I signed a paper giving him the full survivor’s annuity if she were to pass away. My wife has since passed away, and her ex-husband is now receiving the full survivor amount.Based on the papers I signed, will I receive the full amount if he were to pass away before me, and whom do I contact? Response: Because your original paperwork specified that you would receive the full survivor’s annuity if your wife’s former spouse died, you only need to make sure that the Office of Personnel Management (OPM) has your current address. If it hasn’t changed since the original papers were filed, you don’t need to do anything. If it has, send that information to OPM, Retirement Operations Center, P.O. Box 45, Boyers, PA 16017-0045, along with your late wife’s CSA number. You don’t need to keep track of your late wife’s ex-spouse. If he were to die, OPM would learn about that and begin the process of providing the survivor’s annuity to you.

FERS SUPPLEMENT QUESTION: I retired at my minimum retirement age of 56 after 20 years of service. I am under the Federal Employees Retirement System (FERS). If I return to work outside of the federal government,will I lose my FERS special retirement supplement? Response: If you exceed the annual Social Security earnings limit, your special retirement supplement will be reduced by $1 for every $2 you earn over the limit. In 2010, that annual limit is DECEMBER 2010 | NARFE

$14,160. The reduction takes place on the first of the year following the year of the excess earnings.

MEDICARE PREMIUMS QUESTION: According to the Department of Health and Human Services, upper income Medicare beneficiaries ($85,000 for individuals, $170,000 for married couples filing jointly) will pay the higher premiums, and this will impact about 2 percent of beneficiaries. I question the upper income cutoff and think it should be much higher. I also question that the impact would be limited to just 2 percent. Response: According to the information we have, the monthly Part B premium is adjusted, based on the indi-

NARFE | DECEMBER 2010

vidual’s filing status and adjusted gross income reported two years earlier on the individual’s federal income tax return. The 2010 monthly premium amounts for Part B increase from the basic $96.40/$110.50 when the gross adjusted income is more than $85,000 (single) and $170,000 (filing jointly), and maxes out when the gross income is more than $213,000 for a single filer and more than $426,000 for married filing jointly. The Centers for Medicare & Medicaid Services estimated in October 2009 that, taken as a whole, about 5 percent of all Medicare Part B beneficiaries will pay more than the basic Part B premium each month as a result of higher income. ■

NARFE PERKS

NARFE GENERAL STORE Order NARFE name badges and apparel, including jackets, baseball caps, polo shirts and T-shirts! See MEMBER PERKS on the NARFE Web site, or go to: www.narfegeneralstore.com. Toll-Free Phone: 877-866-0102 Fax: 301-371-6824

Vice President’sViews My Heartfelt Thanks To All By Paul H. Carew National Vice President natvp@narfe.org

want to thank my fellow NARFE members for supporting my successful candidacy for National Vice President. It was a very competitive campaign. Candidates for national office were called upon to address the serious issues facing our organization, such as shrinking membership and resources, as well as the need for change. My principal

opponent in the race was Martha Leiker, Region VII regional vice president, from Colorado. Martha conducted a very formidable and hard-fought campaign, and the election result was very close. Hats off to her. Martha is stepping down from the National Executive Board, but her service to NARFE will not diminish, and she will be an influential force in the Association for years to come. I was very impressed with the diligence and determination of convention delegates. There were no histrionics or rancorous debate. The delegates recognized the overwhelming need for a national dues increase to maintain NARFE’s solvency through the next five or

more years, and they voted overwhelmingly for it. Above all, the delegates welcomed the candidates during the caucuses and listened with approbation when they spoke out for change. It has been a gratifying experience for me to serve NARFE as a chapter officer, a federation president and a regional vice president. And now, I look forward to serving as your National Vice President. I am steadfast in my commitment as a member of the new national leadership team to see NARFE through these perilous economic times. With your continuing support, we will succeed in our number one priority: protecting our earned benefits. ■

From the Secretary’s Desk Looking Ahead With Thanks By Elaine Hughes National Secretary natsec@narfe.org

s I write this, it is nearing the time for me to officially become NARFE’s next National Secretary. It is without a doubt one of the most important milestones in my NARFE journey. I owe much to you, the members, who have given me this incredible opportunity. It is an opportunity that will be taken very seriously,

and I thank each of you. I wish to extend a special thank you to my chapter, Charles R. Patton Chapter 156 in Asheville, NC; the Executive Board of the North Carolina Federation and many of my friends in the Federation Presidents’ Google Group. I also thank the following individuals who provided such wonderful on-site support during the convention: Marlene Bunten, KY; Bill and Donna Shackleford, VA; Sue Hawkins, Patsy Boyles, Frank and Carolyn London, Charlie and Linda Pratt, Tom Hobgood, Theron and Sandy Rumsey, and Lloyd and Vilma Geisert, NC. And, finally, my thanks to Denny Petrack, OH, for nominating me. Their support will always be remembered and cherished. Again, I recognize the contributions and

dedication to NARFE of the other two candidates for National Secretary, H. Ray Harrington and Dave Sullivan. Both, I am sure, will continue to be active in advancing NARFE’s agenda. Many challenges face NARFE, and I strongly believe that you have mandated that we meet these challenges with innovative and creative solutions. As I embark on this journey, I will be focused on exploring the best ways to enhance NARFE and how we might serve the interests of all of our members across the country. NARFE needs all of us to move forward and to grow. With that in mind, I look forward to having conversations with many of you during the next two years. Again, my thanks for your support and vote of confidence. ■ DECEMBER 2010 | NARFE

Treasurer’s Report Honoring Promises By Charles W. Saylor National Treasurer nattreas@narfe.org

irst of all, I would like to thank you for electing me as your National Treasurer. I consider it an honor that you are permitting me to serve you. During my acceptance speech at the convention, I pledged that I would do the best possible job that a NARFE treasurer can do. I want especially to

thank those who assisted me during my campaign, who gave of their time and effort on my behalf, and who encouraged their members to support me. I also promised you a more open budgetary process and, as soon as the 2011 budget is approved by the new National Executive Board, I will post it as a link on the NARFE Web site. It will be accessible to all federation presidents upon proper sign-in with their personal identification numbers. Federation presidents are encouraged to share this information at federation meetings with chapter presidents. My aim in doing this is to keep you

gift

e are 75 years Give thestrong.

fully informed of our financial status because the more information you have, the better you will be at making decisions at our NARFE conventions. At prior conventions, I had little opportunity to meet members of NARFE outside of my region. The 2010 convention in Grand Rapids was enriching because it gave me the opportunity to meet so many NARFE members. You impressed me with your enthusiasm for our organization. NARFE, like all organizations, has to progress. To do this, some changes need to be made. Together, let’s help NARFE move forward. ■

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NARFE News NARFE Names Committee To Revise Association’s Bylaws

elegates at NARFE’s 2010 National Convention directed that a NARFE Bylaws Committee be established to revise the NARFE Bylaws. The committee has

been formed, and its members are listed below. It is not a National Executive Board (NEB) committee and does not come under the supervision of, nor does it report to, the NEB. The com-

mittee may, from time to time, solicit comments from individual NEB members, federations, chapters and other members on the content of the revised Bylaws. The chair of the Bylaws Committee will present the proposed revision of the National Bylaws to delegates for consideration and adoption at the 2012 National Convention in Reno, NV. ■

Bylaws Review Committee REGION 1:

Stephen J.Shurtleff

REGION VI:

JeffersonW. Vaughan

REGION II:

Dr.Eric E. West

REGION VII: Dorothy C.White (Parliamentarian)

REGION III: LarryT.Shaff (Vice Chair)

REGION VIII: Larry Enomoto

REGION IV: DavidAdams

REGION IX: MaryWilliams (Chair)

REGION V:

REGION X:

Linda Kurz

Gaston L.Gianni

NARFE National Life Membership Application National Life Membership offers a hedge against future dues increases and affirms a member’s ongoing support of NARFE’s mission to serve federal employees and retirees. National dues are paid for life; applicable chapter dues are billed annually. Life Membership Fee Schedule Ages

Membership Information

Contact Information

(Active NARFE members)

30-39 $1,796 40-40 1,408 51-55 1,127 (New members) Membership is open to civilians in 960 any agency of the federal or D.C. (before Oct. 1, 1987) 56-60 61-65 801 governments eligible for a federal annuity. 66-70 653 Check one: 71-75 514 Retiree Active federal employee 76-80 392 Spouse Former federal employee 81-90 251 Former spouse Survivor 91-100+ 127

Member Number:_______________________

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

Street Address

Single or Quarterly Payment Installments

Apt./Unit

City/State/ZIP

E-mail Address

Payment Information Single payment

$450.25 353.25 283.00 241.25 201.50 164.50 129.75 99.25 64.00 33.00

Quarterly Installments (4 payments)

Life Membership fee amount: $____________ Date of Birth

Recruiter’s ID # (if applicable)

Credit card

Check or money order (payable to NARFE)

Credit Card Info: MasterCard

Discover

Visa

AMEX

Card Number:______________________________ Exp. Date:_____/_____ Chapter Number (call 800-456-8410 for chapter information)

Name on Card: (print) ___________________________________________________ Signature: __________________________________________ Date:______________

Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin. Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes.

Mail application and payment to: NARFE, Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314

DECEMBER 2010 | NARFE

Silver Circle Expands

ilver Circle donations totaled $96,854 as of October 15. Donors from June 16-October 15 are listed here with their chapter numbers. For a minimum contribution of $25, members receive a Silver Circle pin and have their names published in NARFE magazine.

Members who donate $1,000 or more have their names engraved on the Wall of Fame at NARFE Headquarters. To date, 34 members have given at the $1,000 level. To become a member of the NARFE Silver Circle, see the coupon below.

SILVER CIRCLE ($25 OR MORE) CALIFORNIA CLARENCE L. BUNYARD 0021 MARGARET BUNYARD 0021 MAUREEN KELLY 0021 MICHAEL PRINGLE 1317 COLORADO CURRY E. HORAK 0241 DELAWARE WALTER T. BERWICK 1690 FLORIDA EDWARD M. SMITH 0109 NANCY G. SMITH 0109 IDAHO DAHL L. ZOHNER 0419 INDIANA ALBERTA S.WHITE 0151 MAINE ALBERT MAUS 0206 MARYLAND CHARLES H. SCHAUB 1888 D. THOMAS LONGO 2274

MASSACHUSETTS EDWARD KARABA 0034 DONNA M. POLAND 0034 MICHIGAN GEORGE P. HARTSELL 1215 MINNESOTA ARLYS HARTWIG 0150 MISSOURI MARY MCMANUS 0112 MONTANA VERNE P. LINSSEN 0107 NEBRASKA PATRICIA J. KELLY 0144 NEW JERSEY ROBERT S. CARBONE 0501 JOSEPH CURIA 0718 LILLIAN DRASTURA 1000 NEW MEXICO DANIEL A. BRAVINE 1381 NEVADA DONALD N. BABB 2167

NORTH CAROLINA THOMAS ROGERS 2206 OREGON ELLEN J. CALKINS 0134 TEXAS KENNETH H. CHANDLER 0586 LOUISE S. MARPLE 1320 VIRGINIA LINDA P. MASSARO 0007 EVELYN I. SPURLOCK 0111 LEILANI R. MATSON 0180 CHARLES CUPPLES 0401 JOHN BANKSON 1159 GREGORY R. SUPER 1665 SUSAN M. SUPER 1665 WASHINGTON NONA J. CARTER 1404 WISCONSIN JOHN S. HEINZELMAN 1386 WEST VIRGINIA RONALD HEISE 0567

Give a NARFE Membership for The Holidays!

o you have friends or family members who are eligible for NARFE membership but who have not yet joined? Please consider giving them a gift membership to NARFE. NARFE membership is the perfect gift for the federal employee or retiree who has almost everything. They will receive 12 issues of NARFE magazine and all the other privileges and perks of membership – including discounts on valuable products and services. To give a membership, download Gift Membership Information (F-85) from the NARFEWeb site, www.narfe.org (sign in and click on Downloadable Forms in the left panel of the Members Home Page) or call 800-627-3394.

Silver Circle Contribution Form

Yes!

I want to be a member of the NARFE Silver Circle. Enclosed is my Silver Circle contribution of $ _____

• 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.

ID # ____________________________________________________________________ (ID # may be found on your NARFE magazine label or your NARFE membership card)

Name ____________________________________________________________________ Address ___________________________________________________________________ City ____________________________________ State ___________ ZIP _____________ J My check is enclosed (please make check payable to NARFE Silver Circle) J Please charge my credit card Card type J Mastercard J Visa J Discover J AMEX J Installment Plan Wall of Fame 12-month Card # _________________________________________________ installment plan Expiration Date_____________________________________________ Name __________________________________________________ Signature ___________________________________________ Date ___________________

Clip this contribution form and mail to: NARFE Silver Circle, NARFE, 606 N. Washington St., Alexandria, VA 22314 Silver Circle contributions are not deductible for federal income tax purposes. NARFE | DECEMBER 2010

NARFE News

Recruitment Results –Through 3rd Quarter 2010 At the end of the third quarter of 2010, NARFE had enrolled 13,910 new members. This compares with 14,918 at the same time in 2009. – Jacqueline Johnson-Bryant,Recruitment and RetentionAssistant REGION I

REGION V Iowa . . . . . . . . . . . .231 Kansas . . . . . . . . . .173 Minnesota . . . . . . .317 Missouri . . . . . . . . .257 Nebraska . . . . . . . . .84 North Dakota . . . . .89 South Dakota . . . . . .65 Total . . . . . . . .1,216

REGION IX Alaska . . . . . . . . . . . .68 Idaho . . . . . . . . . . . .66 Montana . . . . . . . . . .50 Oregon . . . . . . . . . .148 Washington . . . . . .416 Total . . . . . . . . .748

Illinois . . . . . . . . . . .419 Indiana . . . . . . . . . .199 Michigan . . . . . . . . .301 Ohio . . . . . . . . . . . .370 Wisconsin . . . . . . .230 Total . . . . . . . .1,519

Connecticut . . . . . .103 Massachusetts . . . .246 Maine . . . . . . . . . . . .80 New Hampshire . . .67 New York . . . . . . ..550 Rhode Island . . . . . . .46 Vermont . . . . . . . . . .23 Total . . . . . . . .1,115

REGION II Dist. of Columbia . .128 Delaware . . . . . . . .101 Maryland . . . . . . . .996 New Jersey . . . . . .309 Pennsylvania . . . . . .634 Total . . . . . . . .2,168

REGION VIII California . . . . . . .1,019 Guam . . . . . . . . . . . .11 Hawaii . . . . . . . . . .113 Nevada . . . . . . . . . . .95 Philippines . . . . . . . . .0 Total . . . . . . . .1,238

REGION X Kentucky . . . . . . . . 145 North Carolina . . . 331 Tennessee . . . . . . . . 228 Virginia . . . . . . . . 1,124 West Virginia . . . . . . 93 Total . . . . . . . . 1,921

REGION VII Arizona . . . . . . . . .268 Colorado . . . . . . . .318 New Mexico . . . . .122 Utah . . . . . . . . . . . . .74 Wyoming . . . . . . . . .38 Total . . . . . . . . .820

REGION IV

REGION III REGION VI Arkansas . . . . . . . . .117 Louisiana . . . . . . . .129 Oklahoma . . . . . . .216 Panama . . . . . . . . . . . .8 Texas . . . . . . . . . . .694 Total . . . . . . . .1,164

FOREIGN 31

Alabama . . . . . . . . .288 Florida . . . . . . . . . .865 Georgia . . . . . . . . .449 Mississippi . . . . . . .115 Puerto Rico . . . . . . .57 South Carolina . . . .196 Total . . . . . . . . . .1,970

CHANGE OF ADDRESS: Contact Member Records toll-free at 800-456-8410, or send change of address by postal mail to NARFE Headquarters, ATTN: Member Records, or by e-mail to memberrecords@narfe.org. Q&A: To obtain an answer to a retirement benefits question, call 703-838-7760 and ask for the Retirement Benefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: Retirement Benefits; or submit it by e-mail to retbenefits@narfe.org.

OUT & ABOUT: Submit photo with caption information by postal mail to NARFE Headquarters, ATTN: Out & About, or by e-mail to rl@narfe.org. LETTERS TO THE EDITOR: Letters to the editor may be edited for grammar, clarity and length. All letters must be signed. Send by postal mail to NARFE Headquarters, ATTN: Letters to the Editor, or by e-mail to rl@narfe.org.

DECEMBER 2010 | NARFE

Out & AW bout ith the Chapters For more NARFE chapter and federation photos,go to www.narfe.org. Click on NARFE magazine. Charles Moore, president of North Dallas (TX) Chapter 1139, poses with Sherrie C. Wilson, a member of the Dallas Fire Department, who spoke at a recent chapter meeting. Hired by the Dallas Fire Department in 1977, Wilson was the first female firefighter and licensed paramedic in the department. Members of Chapter 443 in Huntsville, AL, participated recently in the annual Alzheimer’s Walk. Pictured, from left to right: front row, Jerry Cox, Judi Moon, Sharon Snuff, Eleanor Kay and Barbara Boomershine; second row, John Schmitz, Cheryl Patterson and Jan Hollowell; third row, Ray Farmer and Monte Hollowell.

90thAnniversary Merchandise for Sale

ARFE has the following 90th Anniversary merchandise for sale:

• 90th Anniversary Book,NARFE:Celebrating 90Years of Service,1921-2011,$10; • 90th Anniversary PowerPoint Presentation,$5; • 90th Anniversary Lapel Pin,$3.

To order: Go to www.narfe.org,click on Leadership at the top of the page,then click on NARFE 90thAnniversary Merchandise.

NARFE members contributed for Alzheimer’s research:

Mike Demski, right, president of the New Jersey Federation, presents the 2010 Service Officer of the Year Award for New Jersey to David Scheinhartz of Chapter 1533 in Middletown.

SUPPORT ALZHEIMER’S RESEARCH

$9 Million Fund

$8,836,191* *Total as of September 30, 2010 100% of all contributed funds go to Alzheimer’s research. If you have any questions, write to: National Committee Chairman Barb L. Pretzer, 4817 Rockridge Ct. Manhattan, KS 66503

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

Mr.

Mrs.

NARFE-Alzheimer’s Research and mail to: Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633 NARFE | DECEMBER 2010

Ms.

Address _____________________________________________________________ City _______________________________ State _________ ZIP ______________ Chapter number _______________________ Credit Card Information: ❑ Visa

Your charitable contribution is tax deductible to the fullest extent allowed by law. Write your chapter number on check; make it payable to:

Miss

Name _______________________________________________________________

❑ MasterCard

❑ Discover

❑ AMEX

Card Number: __________________________________________________________ Expiration Date:________(mm)/_________(yy) 3-Digit Security Code: _________ Name on Card: (print) ___________________________________________________ Signature:_________________________________________ Date: _______________

ARFE is proud to present the 2010 NARFE Scholarship winners and their NARFE sponsors. Each student received an award certificate and a $1,000 check for the 2010-2011 school year. Special thanks goes to the NARFE members from all 10 NARFE regions who served on the judging teams and to the staff of the Federal Employee Education & Assistance Fund (FEEA), which administers this program for NARFE. Applications for the next scholarship program will be printed in the February through April issues of NARFE magazine. (Note: Winners are listed according to the region of their NARFE sponsor.)

REGION I

Daniel Sack

Samantha Scibelli

Carson Jackson Katy Coggins University of Georgia University of Texas Granddaughter of Mildred Granddaughter of Marguerite Jackson, Chp 1419 (GA) Coggins, Chp 1369 (MS)

Erik Simpanen

Joseph Yagoda

Kaitlyn Yarrows

Nicole Lust

Davis Orr

Anesia Reticker

University of Rhode Island Grandson of Viola Gerber, Chp 158 (CT)

Yale University Son of Steve Yagoda, Chp 471 (NY)

University of Tampa Granddaughter of Mary Yarrows, Chp 484 (MA)

University of Maryland Granddaughter of Vernon Bump, Chp 1557 (FL)

University of Alabama Grandson of Robert Orr Sr., Chp 443 (AL)

University of Georgia Granddaughter of Rafael DeJesus, Chp 252 (PR)

Kane Brookens

Chelsea Buxton

Shane Daly

Shippensburg University Grandson of Kathryn Dymond, Chp 1063 (PA)

Penn State Daughter of Herbert Buxton, Chp 1287 (PA)

Duke University Grandson of Roberta Daly, Chp 1556 (PA)

Caitlin Kowalewski

Lauren Stabler

Elizabeth Harvey

U. of Mary Washington Harford Community College Ohio State University Granddaughter of Dorothy Granddaughter of John Granddaughter of Irving Harvey, Chp 2306 (MD) Schanberger, Chp 1770 (MD) True, Chp 1260 (MD)

Helen Argiroff-Flood

Julie Depauw

Purdue University U. of Michigan Ann Arbor Granddaughter of James Granddaughter of Carl Depauw, Chp 470 (OH) Argiroff, Chp 1163 (MI)

Glen Marquardt

Amelia Martens

Ryan Lannan University of Texas Grandson of John Lannan, Chp 57 (IN)

REGION IV

REGION II

Adam Bumpus University of Tennessee Grandson of Peggy Bumpus, Chp 934 (SC)

REGION III

Allison Hubbard

Bryant University Brown University University of Massachusetts Granddaughter of Felicity Grandson of William Granddaughter of John Hubbard, Chp 257 (CT) Lieberman, National only (MA) Phillips, Chp 221 (MA)

Jessica Zeiger

University of California Berkeley U. of IL Urbana-Champaign Grace College Winona Lake Granddaughter of Marilyn Granddaughter of Gary Grandson of Martha Cole, Chapter 1215 (MI) Declerck, Chp 338 (IL) Marquardt, Chp 689 (WI)

DECEMBER 2010 | NARFE

REGION V

Purdue University Granddaughter of Albert Howard, Chp 150 (MN)

Ashley Leckliter Kansas State University Granddaughter of Thomas Leckliter, Chp 1933 (KS)

Kenna Baker

Ashley Brey

Elizabeth Hively

University of North Dakota University of Missouri Granddaughter of Warren Granddaughter of Jerris Brey, Chp1377 (ND) Waddell, Chp 1926 (MO)

Jodie Skidmore

Garrett Sutton

Brigham Young University Gonzaga University Granddaughter of Edward Grandson of Robert Skidmore, Chp 366 (KS) Gestring, Chp 362 (NE)

Wyatt Church

Nicolas Jordan

REGION VI

Devon Keith

Ryan Rightmer

Chance Whinnery

Texas A&M University Granddaughter of Joy McMillin, Chp 1375 (TX)

Rice University Grandson of Robert Rightmer, Chp 1415 (TX)

University of Oklahoma Son of James Whinnery, Chp 1722 (OK)

Erik Morrison

Utah State University Lawrence University Granddaughter of Douglas Son of Karen Morrison, Gottfredson, Chp 155 (UT) Chp 1119 (CO)

Cory Smith

Patrick Sullivan

Katherine Kirk

Tanis Reed

University of Nevada Reno Brigham Young University Granddaughter of Barbara Grandson of Eva Reed, Kirchner, Chp 45 (CA) Chp 1854 (NV)

Saul Winer U. of California Santa Cruz Grandson of Frank Winer, Chapter 531 (CA)

Lindsey Elhart

Kristen Fredricks

Sarah Gilmore

Washington State University Daughter of Allen Agnew, Chp 131 (WA)

Azusa Pacific University Granddaughter of Lanny Fredricks, Chp 213 (OR)

George Fox University Granddaughter of Regina Frantz, Chp 236 (WA)

Shawn Jackson

Sharon Koss

California Lutheran University Grove City College Grandson of Chuck Warner, Daughter of Lee Koss, Chp 397 (CA) Chp 2067 (AK)

Nathan Sieler Gonzaga University Grandson of Gordon Rubenthaler, Chp 515 (ID)

Ashley Peterson

Steven Kroh

Jacob May

Willie McKoy III

Utah State University Granddaughter of Keith Eggleston, Chp 1037 (WY)

Stevenson University Grandson of Uriah Kroh, Chp 1270 (VA)

University of Virginia Grandson of Gladys Barden, Chp 2265 (VA)

NC A&T State University Son of Willie McKoy Jr., Chp 276 (NC)

Andrew Merkle

Dianna Roberts

Cathryn Schartung

Kaitlin Trujillo

University of Arizona Texas Christian University Colorado School of Mines Grandson of Joseph Daughter of Manuel Trujillo, Grandson of Bobbie Lewis, Cordova, Chp 80 (NM) Chp 1061 (AZ) Chp 1085 (CO)

NARFE | DECEMBER 2010

Eugene Fox

University of Kentucky WV Wesleyan College Grandson of John Burton, Granddaughter of Betty Chp 1643 (KY) Roberts, Chp 2287 (WV)

REGION X

REGION VII

Veronica Hunsaker

Steven Ellison

REGION IX

University of Central Oklahoma Texas A&M University Oklahoma State University Granddaughter of Dale Grandson of Dennis Jones, Son of Steven Jordan, Cassel, Chp 749 (OK) Chp 228 (TX) Chp 2351 (OK)

Ian Carr

U. of California Santa Barbara U. of California San Diego Cal Poly San Luis Obispo Grandson of Joseph Son of Thomas Carr, Grandson of Grant Fox, Downs, Chp 2031 (NV) Chp 190 (CA) Chp 74 (CA)

REGION VIII

Laura Brenberg

Auburn University Granddaughter of Joseph Schartung, Chp 324 (TN)

NARFE Perks NARFE Perks are designed to provide NARFE members with a quality option in their search for commonly used products and services. NARFE makes no guarantee on any products and services listed below and encourages its members to shop and compare before making a decision on any financial matter.

MOVING SERVICES

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

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

VACATION RENTALS

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

INSURANCE

TRAVEL

NARFE INSURANCE SERVICES

NARFE Cruises

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

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

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

• Concierge Host • Private Cocktail Party • Exclusive Shore Event • Onboard Amenity 7-night Bermuda ~ June 19, 2011 12-night Med ~ Sept. 9, 2011 10-day Canada ~ Sept. 30, 2011 12-day S. America ~ Dec. 8, 2011 14-day Asia ~ Feb. 5, 2012 CALL FOR MORE INFO TODAY!

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

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

Call to schedule your appointment

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

DECEMBER 2010 | NARFE

HOTELS

CAR RENTALS

CREDIT UNION

ALAMO/NATIONAL CAR RENTAL

NARFE’S OFFICIAL CREDIT UNION

CHOICE HOTELS INTERNATIONAL With 6,000 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. Join the Choice Privileges® rewards program and earn points with every qualifying stay toward free nights, Airline Rewards, gift cards and more. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer. Advance reservations required. To book, visit choicehotels.com or call 800-258-2847.

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

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

CREDIT CARD AVIS: 1-800-331-1441 WYNDHAM HOTEL GROUP As a member of NARFE, you will receive an additional 10% off the “Best Available Rate” at participating locations every time you travel. Book online or call and give agent your special discount ID number, #20672, at time of booking to receive discount. Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now. Call our special member-benefits hotline 1877-670-7088 and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites®, Microtel Inns and Suites®, Howard Johnson®, Travelodge®, Knights Inn® and AmeriHost Inn®.

NARFE | DECEMBER 2010

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

HEALTH SCREENING

LIFE LINE SCREENING

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

Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct the following screenings using NARFE MERCHANDISE state-of-the-art ultrasound technology NARFE in your neighborhood: GENERAL STORE 1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease. You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share Order NARFE name badges and these test results with your doctor. All four apparel, including jackets, baseball screenings cost just $135. To schedule an caps, polo shirts and T-shirts! appointment, please call 1-800-324-9906 See MEMBER PERKS and give the operator code number: on the NARFE Web site, or go to: BKHN075 or visit www.lifelinescreening. www.narfegeneralstore.com. com/NARFE. Toll-Free Phone: 877-866-0102 Coverage may vary and may not be Fax: 301-371-6824 available in all states.

For the Record All Funds Post October Gains ByTracey Ray

he gains that began in September continued in October, as all of the Thrift Savings Plan (TSP) Funds posted positive returns for the second month in a row. Although the unemployment rate remained unchanged at a lofty 9.6 percent and Gross Domestic Product grew a sluggish 2.0 percent in the third quarter, investors focused on Federal Reserve Chairman Ben Bernankeâ&#x20AC;&#x2122;s remarks that the Federal Reserve Bank would begin a second round of quantitative easing, purchasing U.S. Treasury securities in the open market in order to hold interest rates down. For the year to date, the L 2040 Fund has outperformed all other TSP Funds except the S Fund.

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

NO RETIREE COLA See page 8.

Thrift Savings Plan Investments* Month G Fund 0.26% 2009 November December 0.25% 0.29% 2010 January February 0.24% March 0.27% April 0.28% May 0.28% June 0.24% July 0.23% August 0.22% September 0.17% October 0.18% Last 12 Months 2.94%

F Fund 1.30% (1.55%) 1.54% 0.38% (0.11%) 1.07% 0.85% 1.56% 1.07% 1.28% 0.17% 0.36% 8.16%

C Fund 6.00% 1.94% (3.60%) 3.11% 6.04% 1.58% (7.99%) (5.24%) 7.01% (4.51%) 8.92% 3.80% 16.53%

S Fund 3.85% 6.57% (2.43%) 4.89% 7.39% 4.82% (7.51%) (6.90%) 7.00% (5.59%) 11.47% 4.48% 29.17%

I Fund 3.16% 1.43% (5.17%) 0.06% 6.28% (2.35%) (11.20%) (1.75%) 10.78% (3.14%) 9.81% 3.63% 9.78%

Month 2009 November December 2010 January February March April May June July August September October Last 12 Months

L 2010 1.47% 0.70% (0.58%) 0.81% 1.61% 0.51% (1.64%) (0.68%) 1.81% (0.62%) 2.00% 0.92% 6.41%

L 2020 3.00% 1.50% (2.03%) 1.61% 3.75% 0.76% (4.98%) (2.34%) 4.82% (2.29%) 5.54% 2.29% 11.63%

L 2030 3.55% 1.85% (2.49%) 1.94% 4.52% 0.94% (6.07%) (2.98%) 5.80% (2.88%) 6.77% 2.78% 13.65%

L 2040 3.98% 2.12% (2.88%) 2.18% 5.15% 1.05% (6.97%) (3.47%) 6.60% (3.33%) 7.76% 3.16% 15.18%

L Income 1.27% 0.59% (0.45%) 0.74% 1.43% 0.50% (1.50%) (0.61%) 1.81% (0.63%) 2.00% 0.92% 6.18%

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

NARFE Statement of Ownership, Management, and Circulation 1. Publication Title: NARFE 2. Publication Number: 4632-60 3. Filing Date: Sept. 27, 2010 4. Issue Frequency: Monthly 5. Number of Issues Published Annually: 12 6. Annual Subscription Price: $33 7. Address of Known Office of Publication: National Active and Retired Federal EmployeesAssociation, 606 N.Washington Street, Alexandria,VA 22314-1914 8. General Business Office of the Publisher: National Active and Retired Federal Employees Association, 606 N.Washington Street, Alexandria,VA 22314-1914 9. Names and Addresses of Publisher, Editor, and Managing Editor: Publisher: National Active and Retired Federal Employees Association, 606 N.Washington Street, Alexandria,VA 22314-1914 Editor: Margaret M. Carter, 606 N.Washington Street, Alexandria,VA 223141914 Managing Editor: Not Applicable 10. Owner: National Active and Retired Federal Employees Association, 606 N. Washington Street, Alexandria,VA 22314-1914 11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages or Other Securities: None 12. Tax Status: Has Not Changed During Preceding 12 Months 13. Publication Title: NARFE 14. Issue Date for Circulation Data Below: October 2010 15. Extent and Nature of Circulation:

Average No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date A. Total Number of Copies (Net Press Run) 307,360 307,184 B. Paid Circulation 1. Mailed Outside-County Paid Subscriptions Stated on PS Form 3541 299,436 295,502 2. Mailed In-County Paid Subscriptions Stated on PS Form 3541 0 0 3. Paid Distribution Outside the the Mails including Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid Distribution Ouside USPS 0 0 4. Paid Distribution by Other Classes of Mail Through the USPS 0 0 C. Total Paid Distribution 299,436 295,502 D. Free or Nominal Rate Distribution 1. Free or Nominal Rate Outside-County Copies included on PS Form 35410 0 0 2. Free or Nominal Rate In-County Copies included on PS Form 3541 0 0 3. Free or Nominal Rate Copies Mailed at Other Classes Through the USPS 5,667 8,000 4. Free or Nominal Rate Distribution Outside the Mail 187 641 E. Total Free or Nominal Rate Distribution 5,854 8,641 F. Total Distribution 305,290 304,143 G. Copies Not Distributed 2,070 3,041 H. TOTAL 307,360 307,184 I. Percent Paid and/or Requested Circulation 98.1 97.2 16. Publication of Statement of Ownership: December 2010 17. I certify that all information furnished on this form is true and complete. Margaret M. Carter, Editor/Sept. 27, 2010

DECEMBER 2010 | NARFE

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

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

Questions about Jitterbug?

Try our pre-recorded Toll-Free Hotline1-888-818-7734. The cell phone that’s right for me. Sometimes I think the people who designed this phone and the rate plans had me in mind. The phone fits easily in my pocket, but it flips open and reaches from my mouth to my ear. The display is large and backlit, so I can actually see who is calling. With a push of a button I can amplify the volume, and if I don’t know a number, I can simply push one for a friendly, helpful operator that will look it up and even dial it for me. The Jitterbug also reduces background noise, making the sound loud and clear. There’s even a dial tone, so I know the phone is ready to use.

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

100

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More minute plans available. Ask your Jitterbug expert for details.

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Available in Red, White (shown), and Graphite.

Call now and get a FREE GIFT. Try Jitterbug for 30 days and if you don't love it, just return it. Why wait, the Jitterbug comes ready to use right out of the box. The phone comes preprogrammed with your favorite numbers, and if you aren’t as happy with it as I am you can return it for a refund of the purchase price. Call now, the Jitterbug product experts are ready to answer your questions.

Jitterbug Cell Phone Call now for our NEW low price.

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

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