April 2020 NARFE Magazine

APR

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COVER STORY

Volume 96 • Number 4

Q&A WITH OPM DIRECTOR DALE CABANISS ALSO IN THIS ISSUE

DIRECTED REASSIGNMENT STATE TAX ROUNDUP

AP R

’20 WASHINGTON WATCH

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White House FY21 Budget Calls for Billions in Cuts From Feds

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House Passes USPS Fairness Act

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To Protect Federal Workers’ Pay and Benefits, Follow the Money

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FAIR Act introduced in Congress

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Senate Committee Tackles Social Security Impersonation Scams

10 Oversight Committee

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Approves DC Statehood Bill

COVER STORY Q&A WITH OPM DIRECTOR DALE CABANISS NARFE sat down with the new OPM director and talked with her about issues facing the federal community.

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Bill Tracker

COLUMNS

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From the President

48 Managing Money

34

DIRECTED REASSIGNMENT—IT CAN HAPPEN TO YOU: Learn what happens when you’re told you have to move for your federal job.

DEPARTMENTS

16

Questions & Answers

50 For the Record 52 NARFE News

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On the Web

54 Member Perks 56 The Way We Worked

VISIT US ONLINE AT:

www.narfe.org COVER STORY

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NARFE National Headquarters

Volume 96 • Number 4

Q&A WITH OPM DIRECTOR DALE CABANISS ALSO IN THIS ISSUE

DIRECTED REASSIGNMENT STATE TAX ROUNDUP

ON THE C OVER Photo courtesy OPM

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APRIL 2020 | Volume 96 | Number 4

EDITORIAL DIRECTOR Helen Mosher SENIOR EDITOR Mabel Yu COMMUNICATIONS ASSISTANT Precious Dorch-Robinson CREATIVE SERVICES MANAGER Beth Bedard GRAPHIC DESIGN GRAPHEK EDITORIAL BOARD Kenneth J. Thomas, Kathryn E. Hensley, Barbara Sido CONTACT US NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Editorial: communications@narfe.org Advertising Sales: Anita Nelson advertising@narfe.org NARFE FOR THE VISUALLY IMPAIRED ON THE TELEPHONE: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-504-7300 or go to www.nfbnewsline.org.

ON DIGITAL AUDIO: Issues of NARFE Magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS).

For availability, call 202-727-2142 or your local NLS service provider.

The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

NATIONAL OFFICERS KENNETH J. THOMAS President; natpres@narfe.org KATHRYN E. HENSLEY Secretary/Treasurer; natsectreas@narfe.org EXECUTIVE DIRECTOR BARBARA SIDO, execdir@narfe.org

REGIONAL VICE PRESIDENTS

REGION I James C. Risner (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) TEL: 207-540-6233 EMAIL: rvp1@narfe.org REGION II Kathy Adams (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) TEL: 302-697-6650. CELL: 302-561-5660 EMAIL: adamskhawaii@aol.com REGION III Clarence Robinson (Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 EMAIL: crobin8145@att.net

REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: pappysdad@cobridge.tv REGION VII Rodney L. Adelman (Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: narfe7vp@cox.net REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) TEL: 707-644-7565 EMAIL: hlzajac125@gmail.com

REGION IV Robert L. Helfrich (Illinois, Indiana, Michigan, Ohio and Wisconsin) TEL: 317-501-1700 EMAIL: rvp4@narfe.org

REGION IX Richard Wilson (Alaska, Idaho, Montana, Oregon and Washington) TEL: 253-210-5609, CELL: 425-736-6899 EMAIL: narfe1404@comcast.net

REGION V Cindy Reneé Blythe (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) TEL: 785-256-1450 EMAIL: mrsdocbusyb@yahoo.com

REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) TEL: 703-830-6590, CELL: 703-201-6304 EMAIL: rvp10@narfe.org

HERE’S HOW TO CONTACT US… TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER:

CALL (TOLL-FREE) 800-456-8410 OR GO TO www.narfe.org TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:

CALL (TOLL-FREE) 800-456-8410 EMAIL memberrecords@narfe.org OR GO TO www.narfe.org, log in and click on “My Account”

TO REACH A FEDERAL BENEFITS SPECIALIST:

EMAIL fedbenefits@narfe.org NARFE HEADQUARTERS

606 N. Washington St. Alexandria, VA 22314 703-838-7760 Hours of operation: Monday-Friday, 8 a.m.-5 p.m. ET

NARFE.org

narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $40. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2019, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in NARFE Magazine, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President

THE VALUE OF NARFE MEMBERSHIP TO THE FEDERAL COMMUNITY

N

one of the important work NARFE does would be possible without your involvement. Members drive what

we do and are the engine behind every ounce of progress. Thank you for being active in your federation and in our continued efforts to increase awareness of the value and contributions that federal employees and retirees bring to society.

As the trusted source of knowledge for the federal community, NARFE should be a household name for any civil servant or retiree.

But we’re not. So, how do we get there?

You are a big part of the solution. Did you know that your recommendation of NARFE to a fellow Fed will carry more weight with that person than any other message he or she might receive from us?

If every NARFE member went out and recruited one member tomorrow, we’d double in size. Now, I don’t expect every NARFE member to become a recruiter. But data from association marketing reports tell us that more than 75 percent of members of associations generally first hear about the organization they are

NARFE’s Mission Statement

about to join through some kind of personal or professional referral.

Nothing compares to your reaching out to potential members and inviting them to one of the services that NARFE provides or content that they will find meaningful. Maybe it’s sharing articles from this magazine. Perhaps it’s a social media post you make about one of our advocacy messages. It could be that you bring them to a chapter meeting or forward them a copy of your member-exclusive version of NARFE NewsLine.

There are many ways to help us get the word out about our resources. Be a salesperson for NARFE; after all, you know why you joined.

And remember to welcome new members.

Help them stay involved when you see them at a NARFE event. Introduce yourself, and address them by their first name. Tell them about the value you receive by being a member of NARFE. Show them the value of their membership, and keep them engaged. Ask if they want to stay in touch by email or telephone, but don’t overdo the contact. Send them a list of local town hall meetings or local and national association events, online webinars and educational offerings, and other member benefits. Encourage first-time members to participate, and help them feel like they have a future with the association.

With your help, we can broaden awareness of NARFE’s important mission and bring more people into the organization. Help build the future of NARFE by inviting a fellow Fed to join.

To support legislation and regulations beneficial to federal civilian employees and annuitants and potential annuitants under any federal civilian retirement system and to oppose those detrimental to their interests.

To promote the general welfare of federal civilian employees and annuitants and potential annuitants, to advise and assist them with respect to their rights under retirement, health and other employee and retiree benefits laws and regulations, and to represent their interests before appropriate authorities.

To cooperate with other organizations and associations in furtherance of these general objectives.

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KENNETH J. THOMAS NARFE NATIONAL PRESIDENT natpres@narfe.org

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Washington Watch

WHITE HOUSE FY21 BUDGET CALLS FOR BILLIONS IN CUTS FROM FEDS

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resident Trump’s fiscal year 2021 (FY21) budget calls for substantial cuts to the earned benefits of federal employees and retirees, undermining past and future

service to this nation and taking aim at the retirement security of the federal community. The president’s latest budget is a familiar refrain of the past few years, calling for over $179 billion in cuts to earned benefits while standing in stark opposition to its own assessment of the recruitment challenges the federal government faces. The president’s budget shows disregard for the commitments made to federal workers and hamstrings the government’s ability to recruit and retain a highly qualified workforce.

The budget contains familiar cuts: elimination of cost-ofliving adjustments (COLAs) to Federal Employees Retirement System (FERS) annuities and reducing COLAs by 0.5 percent for Civil Service Retirement System (CSRS) annuities; increased FERS employee contributions to retirement without any corresponding increases in benefits, amounting to a sizeable cut in takehome pay; elimination of the fully funded FERS annuity supplement; reduction of the

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Thrift Savings Plan G Fund rate of return; calculation of federal annuities using the average of the highest five years of salary instead of the average three years; and a reduction in paid

ACTION ALERT!

leave by combining sick and annual leave.

The administration also proposed a 1.0 percent federal employee pay raise in 2021, falling significantly below recent increases in the private sector and the raise provided for the military. A 1.0 percent raise widens the wage gap between federal workers and their private-sector counterparts.

NARFE urges Congress to appropriate a federal pay raise of at least 3 percent in 2021 to track with the military and private sector.

The president’s proposal included these cuts under the General Services Administration’s (GSA) budget, which shows that

APRIL

If enacted, proposals in the president’s fiscal year 2021 budget would cut nearly $180 billion in earned benefits from the federal community. Attacks on the earned pay and benefits of the people who dedicated their careers to civil service are unacceptable. Visit NARFE’s Legislative Action Center at www. narfe.org/legislation to urge your legislators to oppose these proposed budget cuts.

the administration is still operating under the assumption that the Office of Personnel Management (OPM) will be eliminated. The plan does so even after recent law blocked the OPM reorganization plan from advancing at least until 180 days after the National Academy of Public Administration (NAPA) issues a study detailing the challenges facing OPM and recommending solutions.

The proposals outlined in the president’s budget require congressional action; however, the president has the authority to set the federal employee pay raise—unless Congress overrides him, as it did with the 2020 raise. Offering a 1.0 percent pay raise while simultaneously touting a strong economy, low

unemployment and high privatesector wages shows a lack of appreciation for the work of civil servants. Thanks in part to the advocacy of NARFE members, NARFE has been successful in working with Congress to obtain adequate pay raises and will do so again this year.

Cutting benefits and reneging on commitments is no way to recruit and retain highly qualified federal workers who will take on our nation’s greatest challenges. Going after already earned benefits harms those in retirement.

NARFE will work hard to ensure that Congress rejects these misinformed proposals and actively appropriates a competitive pay raise for federal employees.

— BY ROSS APTER, POLITICAL ASSOCIATE

HOUSE PASSES USPS FAIRNESS ACT

I

n February, the House of Representatives overwhelmingly passed H.R. 2382, the USPS Fairness Act, in a bipartisan vote of 309-106.

In advance of the vote, NARFE President Ken Thomas sent a letter to the chamber asking for its support of the legislation.

The bill would help right USPS’ deteriorating financial condition by repealing its retiree health insurance prefunding mandate.

Signed into law in 2006, the mandate requires the agency to prefund its future retiree health care liabilities at 100 percent over a 10-year period. The requirement

accounts for 90 percent of USPS’ financial losses and generates billions in debt for the agency. No other federal agency or privatesector company fully prefunds its retiree health benefits. Repeal of the mandate is the only option for USPS to revive its financial health and maintain its high service standards.

Repeal of the prefunding mandate would also discourage negative cost-cutting strategies that hurt employees and retirees, such as postal reform legislation from the 115th Congress that sought to require retired postal (Continued on p.10)

MYTH vs.

REALITY Myth: Federal employees don’t pay the Social Security payroll tax but still receive its benefits.

Reality: Civil Service Retirement System (CSRS) employees do not pay into Social Security and, accordingly, do not receive any Social Security benefits for their government service.

If they paid into Social Security for a job held in the private sector, their Social Security benefits are greatly diminished under the Windfall Elimination Provision (WEP). Employees under the Federal Employees Retirement System (FERS) have Social Security taxes withheld from their paychecks at the same rate as private-sector employees (6.2 percent) and receive the same benefits.

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Washington Watch

TO PROTECT FEDERAL WORKERS’ PAY AND BENEFITS, FOLLOW THE MONEY

P

resident Trump has submitted his budget request to Congress for the new federal fiscal year that begins on October 1. It’s not surprising how similar the proposal is to the last three budgets submitted by the administration.

Once again, the request boldly takes aim at the pay and benefits of federal workers and retirees—the vital individuals who ensure our federal government functions daily are continuously bearing the brunt of federal budget cuts. The reckless recommendations in the president’s proposal would strip away hundreds of billions of dollars from the federal community by eliminating costof-living adjustments (COLAs) for current retirees and implementing other initiatives that would negatively affect retirement and health security.

What is unsettling about these proposals is the breach of trust they could create between federal workers and the government they serve. In exchange for their service to this country, civil servants are promised specific financial and health benefits. The administration’s aggressive attacks not only hurt current members of the federal community, but also invariably keep young talented professionals from seeking careers in civil service in the future.

If there was ever a need for NARFE members to mobilize, it is right now. These repeated threats to federal workers

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and retirees must be blocked.

But to successfully do so, NARFE members must educate themselves on how to effectively communicate with lawmakers about the budget by staying informed as legislation makes its way through Congress.

The federal budget process is complicated. Here’s a simplified version: the president submits a budget request to Congress, Congress passes budget resolutions, and House and Senate appropriations committees hammer out details in a series of bills that will actually fund federal programs.

Once differences are reconciled, final legislation goes to the White House where the president may or may not sign the bills. The truth is, many forces shape the federal budget, including those that stem from the realities of the political system.

The public can download a copy of the president’s proposal from the White House’s website at www.whitehouse.gov/omb/.

However, the budget proposal and related legislation are written in legalese that may come across as gibberish to the uninitiated. If you want to be able to read the budget, you must commit enough time to become familiar with the entire process and with federal budget jargon.

Thanks to nonpartisan organizations such as the Congressional Budget Office (www.cbo.gov), the Committee for a Responsible Federal Budget (www.crfb.org), and the Center on Budget and Policy

Priorities (www.cbpp.org), the public can get a crash course on the federal budget. And NARFE stands ready to help, particularly with aspects that affect federal workers.

Visit NARFE’s Legislative Action Center at www.narfe. org/legislation and take action on the federal budget today.

— BY MARSHA PADILLA-GOAD, GRASSROOTS PROGRAM MANAGER

NARFE GRASSROOTS ADVOCACY Learn more about how you can take action to protect your earned pay and benefits by reviewing NARFE Grassroots materials at www.bitly.com/ NARFE-grassroots.

FAIR ACT INTRODUCED IN CONGRESS

I

n January, Rep. Gerry Connolly, D-VA, and Sen. Brian Schatz, D-HI, introduced the Federal Adjustment of Income Rates (FAIR) Act of 2020, H.R. 5690/S. 3231, which would provide federal employees with a 3.5 percent pay increase in calendar year 2021. Legislation like the FAIR Act would provide hard-working federal employees with a market-based raise, narrow the growing gap between federal and private-sector pay, and stave off a below-market raise in 2021. If federal pay continues to lag behind that of private-sector workers, the federal government will find it increasingly difficult to recruit and retain the best and the brightest.

The disparity between public and private-sector pay is nearly 27 percent, according to the Bureau of Labor Statistics, as private-sector wages continue to climb in a booming economy.

This compensation gap has grown considerably due to the three years of federal pay freezes from 2011 to 2013, subsequent years of inadequate raises, sequestrationrelated furloughs in 2013, and increased retirement contributions for newly hired Feds with no corresponding benefits increases.

In calendar year 2019, Congress appropriated a 1.9 percent average federal pay increase. For 2020, Congress

delivered a 3.1 percent average pay increase – 2.6 percent across the board and a 0.5 percent average increase to locality pay rates. Both of these raises achieved parity with increases in the private sector and those for the military.

Congress should continue this once-common trend in 2020 and augment federal compensation in a way that’s consistent with the dedicated and high-level work performed by civil servants who fight crime and protect national security, ensure a safe food supply, care for veterans, protect the environment, help communities recover after natural disasters, and much more.

— BY SETH ICKES, GRASSROOTS ASSISTANT

SENATE COMMITTEE TACKLES SOCIAL SECURITY IMPERSONATION SCAMS

I

n January, the Senate Special Committee on Aging held a hearing to address Social Security impersonation scams that are growing at an alarming rate across the country.

Scammers call victims to take money or steal their identities. Data from the Federal Trade Commission shows that the scams reach people in all 50 states and across all age groups. About 81 in 100,000 people age 20-29 are scammed, losing an average of $1,000, while 40 in 100,000 people age 80 and older fall victim to these cons and lose an average of $3,000. According to

Social Security Administration (SSA) Commissioner Andrew Saul’s testimony, reports of scam calls to the agency jumped from 5,000 in fiscal year (FY) 2018 to over 60,000 in FY19. An estimated 850,000 calls to Social Security’s 800 number were directly related to scam calls.

Commissioner Saul outlined the agency’s efforts to address the scams through a public awareness campaign involving radio, television and social media public service announcements; warning emails to all “My Social (Continued on p.10) W W W. N A R F E . O R G

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Washington Watch

OVERSIGHT COMMITTEE APPROVES DC STATEHOOD BILL

I

n February, the House Oversight and Reform Committee approved the Washington, D.C. Admission Act, H.R. 5803, moving it to the House floor.

Legislators actively involved with the legislation anticipate that it will be voted on by the full House.

The bill, introduced by Del. Eleanor Holmes Norton, D-DC, would admit the District of Columbia to the Union, thereby granting its 700,000-plus citizens the ability to control their own local governance, along with having two Senators and one Representative in Congress.

The federal government would still retain control of its relatively small footprint (the National Mall and the U.S. Capitol)

(Continued from p. 7) employees to enroll in Medicare Part B or completely lose their Federal Employees Health Benefit (FEHB) coverage. The USPS Fairness Act supports the agency’s mission to provide the nation with reliable, affordable and universal service like door-to-door delivery, six-day delivery and high service standards. Repeal of the mandate would also allow investments that could expand business and save money over the long-term.

Sen. Steve Daines, R-MT, introduced the USPS Fairness Act, S. 2965, to the Senate in December 2019. Visit NARFE’s website today and access the Legislative Action Center to send a message to your Senators in support of the legislation.

— BY SETH ICKES, GRASSROOTS ASSISTANT

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while granting residents of the newly admitted state the rights afforded to the other 50 states, including voting representation in Congress.

NARFE’s members have voted, on two occasions, to include DC statehood in the organization’s legislative agenda, and as such, NARFE supports the legislation.

Given that there are 141,514 active federal employees working in the District of Columbia, many of whom live there, and 44,014 District of Columbia residents who are federal annuitants, having voting legislators that represent DC in Congress likely would be favorable to NARFE’s interests.

LEGISLATIVE RESOURCES • NARFE NewsLine: A weekly newsletter that goes out to NARFE members on Tuesdays and includes weekly recaps of legislative news, compiled

by NARFE’s advocacy and communications teams.

• Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.

— BY ROSS APTER, POLITICAL ASSOCIATE

(Continued from p. 9) Security” account holders; and partnerships with retail stores and third-party organizations to broaden national awareness.

SSA Inspector General Gail Ennis noted that her office and SSA continue to work together to advance awareness of and combat the scams.

The National Council of Social Security Management Associations found that 70 percent of SSA field office managers and supervisors received multiple reports of scams on a daily basis, and it affected their ability to answer phone calls in a timely manner. Justin Groshon, the manager of the Social Security Office in Saco, ME, testified that one Maine field office

received four times its average call volume for over three weeks straight due to inquiries about scams. Nora DowdEisenhower of Philadelphia, PA, the executive director of the Mayor’s Commission on Aging, discussed how this deception can affect seniors and the additional ways that the government and industry can help protect them from becoming victims.

Committee Chair Susan Collins, R-ME, and Ranking Member Bob Casey, D-PA, emphasized their interest in finding new methods to combat scams, and identifying and prosecuting those responsible through congressional action and agency coordination.

— BY SETH ICKES, GRASSROOTS ASSISTANT

narfe bill tracker THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO THE CONGRESSIONAL LEGISLATION THAT NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE

THRIFT SAVINGS PLAN

BILL NUMBER / NAME / SPONSOR H.R. 5018/S. 2791: Taxpayers and Savers Protection (TSP) Act / Rep. Mark Meadows, R-NC / Sen. Marco Rubio, R-FL

WHAT BILL WOULD DO Removes Chinese companies from the Thrift Savings Plan international fund, putting investors at a distinct disadvantage compared to private-sector retirement funds.

Cosponsors: H.R. 5018: 0 (D) 16 (R) S. 2791: 2 (D) 5 (R)

LATEST ACTION(S) Referred to the House Committee on Oversight and Reform (H.R. 5018) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 2791)

H.Res. 23: Rep. Susan Davis, D-CA

Expresses the sense of the Referred to the House House that the United States Committee on OverPostal Service should take all sight and Reform Cosponsors: 206 (D) 53 (R) appropriate measures to ensure the continuation of door delivery for all business and residential customers.

H.Res. 33/S.Res. 99 Rep. Stephen Lynch, D-MA / Sen. Gary Peters, D-MI Cosponsors: H.Res. 33: 225 (D) 42 (R) S.Res. 99: 43 (D) 8 (R) 2 (I)

POSTAL REFORM

H.Res. 54: Rep. Gerald Connolly, D-VA Cosponsors: 217 (D) 74 (R)

H.Res. 60: Rep. David McKinley, R-WV Cosponsors: 180 (D) 26 (R)

H.R. 2382/S. 2965: USPS Fairness Act / Rep. Peter DeFazio, D-OR / Sen. Steve Daines, R-MT

Expresses the sense of the House that Congress should take all appropriate measures to ensure that the United States Postal Service remains an independent establishment of the federal government and is not subject to privatization.

Referred to the House Committee on Oversight and Reform (H.Res. 33)

Expresses the sense of the House that the United States Postal Service should take all appropriate measures to ensure the continuation of its six-day mail delivery service.

Referred to the House Committee on Oversight and Reform

Expresses the sense of the House that the United States Postal Service should take all appropriate measures to restore service standards in effect as of July 1, 2012.

Referred to the House Committee on Oversight and Reform

Repeals the USPS’ prefunding requirement.

Passed the House of Representatives 309-106 (H.R. 2382) on February 5, 2020 / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 2965)

H.R. 2382: 232 (D) 69 (R) S. 2965: 2 (D) 1 (R)

NARFE’s Position:

Support

Referred to the Senate Committee on Homeland Security and Governmental Affairs (S.Res. 99)

Oppose

No position

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Washington Watch

EDITOR’S NOTE: These bills are all listed online at www.narfe.org/legislation/votervoice.cfm.

ISSUE

BILL NUMBER / NAME / SPONSOR H.R. 141/S. 521 Social Security Fairness Act of 2019 / Rep. Rodney Davis, R-IL / Sen. Sherrod Brown, D-OH

WHAT BILL WOULD DO Repeals both the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).

Referred to the House Committee on Ways and Means (H.R. 141)

Reforms the Windfall Elimination Provision (WEP), to provide WEP-affected individuals who are eligible for benefits before 2022 a $100 monthly rebate and $50 for an affected spouse.

Changes the WEP calculation moving forward.

Referred to the House Committee on Ways and Means

H.R. 4540 Public Servants Reforms the Windfall EliminaProtection and Fairness Act tion Provision (WEP), to provide / Rep. Richard Neal, D-MA WEP-affected individuals who are eligible for benefits before 2022 a $150 monthly rebate.

Changes the WEP calculation Cosponsors: moving forward.

122 (D) 2 (R)

Referred to the House Committee on Ways and Means

H.R. 1254: The Equal COLA Act / Rep. Gerry Connolly, D-VA

Provides Federal Employees Retirement System (FERS) retirees with the same annual cost-of-living adjustment (COLA) as Civil Service Retirement System (CSRS) retirees.

Referred to the House Committee on Oversight and Reform

Requires Social Security and federal retirement programs to use the Consumer Price Index for the Elderly (CPIE) to calculate cost-of-living adjustments (COLAs) to retirement benefits.

Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Reform, and Armed Services

Allows federal employees who started their careers in temporary positions before transitioning into permanent roles to retroactively contribute toward their retirement for the years they held a temporary position.

Referred to the House Committee on Oversight and Reform

Cosponsors: H.R. 141: 182 (D) 57 (R) S. 521: 31 (D) 4 (R) 2 (I)

GPO/WEP

H.R. 3934 The Equal Treatment of Public Servants Act of 2019 / Rep. Kevin Brady, R-TX Cosponsors: 41 (D) 3 (R)

Cosponsors: 15 (D) 3 (R)

H.R. 1553: Fair COLA for Seniors Act of 2019 / Rep. John Garamendi, D-CA FEDERAL ANNUITIES

Cosponsors: 34 (D) 3 (R)

H.R. 2478: The Federal Retirement Fairness Act / Rep. Derek Kilmer, D-WA Cosponsors: 44 (D) 13 (R)

DC STATEHOOD

LATEST ACTION(S)

H.R. 51/H.R.5803: Washington, D.C. Admission Act / Del. Eleanor Holmes Norton, D-DC

Referred to the Senate Committee on Finance (S. 521)

Provides for the admission of the Approved by the State of Washington, D.C. into House Committee on the Union.

Oversight and Reform on February 11, 2020.

Cosponsors: 223 (D) NARFE’s Position: 12

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2020

Support

Oppose

No position

EDITOR’S NOTE: These bills are all listed online at www.narfe.org/legislation/votervoice.cfm.

ISSUE

FEDERAL COMPENSATION

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

H.R. 5690/S. 3231: Federal Provides federal employees with Adjustment of Income a 3.5 percent pay raise in 2021.

Rates (FAIR) Act / Rep. Gerry Connolly, D-VA / Sen. Brian Schatz, D-HI Cosponsors: H.R. 5690: 21 (D) 0 (R) S. 3231: 7 (D) 0 (R)

FEDERAL PERSONNEL POLICY

H.R. 3348/S. 1898: Modern Employment Reform, Improvement, and Transformation (MERIT) Act of 2019 / Rep. Barry Loudermilk, R-GA / Sen. David Perdue, R-GA

Streamlines the employee removal process for agencies by weakening due process for federal employees.

H.R. 3348: 0 (D) 19 (R) S. 1898: 0 (D) 5 (R) NARFE’s Position:

Support

LATEST ACTION(S) Referred to the House Committee on Oversight and Reform (H.R. 5690) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 3231) Referred to the House Committee on Oversight and Reform (H.R. 3348) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 1898)

Oppose

No position

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Questions & Answers

The following Questions & Answers were compiled by NARFE’s Federal Benefits Institute staff.

NARFE does not provide legal, financial planning or tax advice or assistance.

EMPLOYEES CONTRIBUTIONS TO THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND (CSRDF)

Q

I had previously taken a refund of my civil service retirement contributions upon leaving federal service many years ago. However, I was rehired in 2018, and I have now paid that back (plus interest). Is the amount I paid back tax deductible, similar to depositing post-tax money into a 401K?

A

Any money that you pay into the CSRDF is not going to change your tax liability (i.e., reduce your taxable income) while you’re working.

This is true whether it’s deducted automatically from your federal employment salary or paid directly to OPM through a redeposit of previously refunded CSRDF contributions. The required automatic deduction that comes out of your federal salary each pay period and goes into the CSRDF is withheld on a post-tax basis, and any money that you send to OPM to pay your redeposit has also been taxed already.

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The same rule applies to any deposits that you may have paid into the CSRDF for any previous nondeduction civil service or military service.

The CSRDF is not regulated by the same tax rules that govern contributions into other retirement savings accounts such as 401ks, 403bs, IRAs or the TSP. Instead, the tax rules that are applied to this money once you begin to draw your federal pension are covered in the following IRS publication: www.irs.gov/forms-pubs/ about-publication-721.

Since the money that you have personally paid into the CSRDF has already been taxed, a small portion of your annuity will be tax-free each year until you have recovered the full amount that you paid into it. More details about computing and tracking this information can be found in IRS Publication 721.

THRIFT SAVINGS PLAN ANNUITY

Q

I plan to separate from government employment at age 57 with 22 years of service, but I will be postponing my FERS retirement until I am age 60. After I separate, can I buy an annuity using my TSP at any time?

I would like to wait for the annuity interest rates to go up before I purchase a large annuity. Could I initially buy a small annuity and purchase a larger one later?

A

Once your agency payroll office has notified the TSP that you have separated from federal service, you can exercise any of your TSP withdrawal options at any time.

You can also change certain withdrawal options at any time.

For example, you can change the periodic payments (monthly, quarterly, annually) and the amount of the periodic payment, and you can start and stop these payments as well. You can also exercise as many partial withdrawals as you need (limited to one every 30 days).

However, once an annuity has been purchased, you cannot change that annuity.

As long as there is at least $3,500 sitting in your TSP account, you are allowed to purchase an annuity at any time.

You even have the flexibility to purchase multiple annuities over time, if desired.

For more details, refer to the following booklets: Withdrawing From Your TSP Account, www. tsp.gov/PDF/formspubs/ tspbk02.pdf, and TSP Annuities Fact Sheet, www.tsp.gov/PDF/ formspubs/tspfs24.pdf.

In February, NARFE’s Federal Benefits Institute hosted a TSP webinar you may be interested in. You can view the recording at www.narfe.org/ federalbenefitsinstitute/.

RETIREES RESTRICTED APPLICATION FOR SOCIAL SECURITY

Q

I found the Benefits Brief in the February issue regarding the restricted application for Social Security interesting. I’m currently 62 and my husband is 72 and retired under the Civil Service Retirement System (CSRS). Is this something that either one of us can do?

A

That Benefits Brief column was targeted at the estimated 12 million Americans who were born before January 2, 1954, and are currently younger than 70. Since you were born after that date, you

Q

won’t be able to take advantage of this Social Security option. In this month’s Benefits Brief on p.22, we share a little information about dual entitlement and deemed filing rules for people such as yourself who were born after that date.

Although your spouse was born before that date, this was an option that he could have done before reaching age 70 only if you were already drawing your own Social Security benefit. But since you were too young to draw Social Security when your spouse was younger than 70, it wasn’t an option for him at the time.

Even if you were older and drawing Social Security off your own work record when he was younger than 70, any Social

Clarification to the first paragraph of the answer to the “Living Without Medicare Part B” question from the January 2020 Q&A, page 19:

A

Having Medicare Part B as primary coverage to FEHB in retirement might benefit most federal retirees in the long run. This is especially true if the retiree pays the basic premium of 25 percent of the total cost of Medicare Part B (as explained on page 18 of the January 2020 issue).

However, there are some exceptions that explain why some retirees opt out of Medicare Part B when eligible. Revisit the January 2020 issue to learn about these exceptions.

W W W. N A R F E . O R G

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Questions & Answers

Security that he would have attempted to claim from your work record would have been reduced by the Government Pension Offset (GPO) if he was already retired under CSRS.

LONG-TERM CARE INSURANCE ELIGIBILITY

Q

If someone has dementia or Alzheimer’s, are they still eligible to obtain longterm care insurance through the Federal Long Term Care Insurance Program (FLTCIP)?

A

Dementia and Alzheimer’s disease are disqualifying conditions. You can refer to page 4 of the underwriting application to see a list of medical conditions that could disqualify an individual from securing longterm care insurance: https:// cdn.ltcfeds.com/planningtools/downloads/3.0-FullUnderwriting-Application.pdf.

If you secure long-term care insurance from the FLTCIP before you encounter a health issue such as dementia or Alzheimer’s disease, you could potentially start using the insurance once the 90-day waiting period has been satisfied.

As long as you don’t miss a premium payment on your longterm care insurance, the FLTCIP cannot terminate your policy.

Premiums typically cease when the benefits are being used by the insured.

The benefit period that you choose is the length of time benefits will be paid if you

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receive benefits each and every day equal to your full daily benefit amount (DBA). You can choose from a two-year, threeyear, or five-year benefit period.

If you receive services that cost less than your DBA or you don’t receive services every day, your benefits can last longer than your benefit period. The benefit period is used together with the DBA to calculate the maximum lifetime benefit.

For more details, visit the FLTCIP website, www.ltcfeds. com/, and call 1-800-582-3337 (or TTY 1-800-843-3557) if you have any additional questions regarding their program.

Also keep in mind that even if an individual is uninsurable, he or she is still eligible for a noninsurance service package that can provide access to care coordination and a discounted network of long-term care providers and services. The same application mentioned earlier can be used to obtain such information from the FLTCIP.

RECENTLY RETIRED CSRS OFFSET

Q

I retired on January 3 as a CSRS Offset employee with 26 years of service. I have 29 years of substantial Social Security earnings. Ten of those years took place while I was CSRS Offset, and the other 19 years were for work that I did outside of my federal career. Would one additional year of substantial Social Security earnings negate any offset?

A

Congratulations on your recent retirement from federal service.

Offset is a fancy word for reduction. In your case, there are two different reductions to discuss: the reduction to your annuity and the potential reduction to your Social Security.

Since you have officially retired from federal service, the reduction to your annuity from OPM based on your 10 years of CSRS+FICA service (when you contributed less into CSRS than the regular CSRS employee) is set. Those years and the total Social Security amount payable at retirement or age 62 (whichever is later) will be used to compute this offset. For more details about the offset to your annuity, refer to www.opm.gov/ retirement-services/publicationsforms/pamphlets/ri83-19.pdf.

However, since your Social Security benefit is subject to the Windfall Elimination Provision (WEP), if you earn another year of substantial wages that require you to pay the appropriate Social Security tax, your Social Security would become exempt from the WEP. Depending on the wages you earn, that extra year could potentially boost your Social Security benefit by at least another $50 per month. You can use the information and tools on the following webpage for more details: www.ssa.gov/planners/ retire/wep.html.

Since you spent the last five-plus years of your federal government career paying Social Security taxes, you should be

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exempt from the Government Pension Offset (GPO), which would otherwise reduce any Social Security benefit that a spouse or former spouse may have earned for you.

NEW RMD

Q

I turned 70 on November 9, 2019. With the new Setting Every Community Up for Retirement Enhancement (SECURE) Act recently passed and signed into law, when do I have to take my first required minimum distribution (RMD)? Is that still 70½ or now 72?

A

Since you did not reach age 70½ in 2019, your new RMD is now 72.

Refer to the following weblink for more details: www.irs.gov/ retirement-plans/retirementplans-faqs-regarding-requiredminimum-distributions.

To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@ narfe.org.

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NARFE webinars take perplexing federal benefit options and transforms them into crystal clear choices.

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Benefits Brief

SOCIAL SECURITY DUAL ENTITLEMENT AND DEEMED FILING RULES

T

he Benefits Brief in the February 2020 issue of NARFE Magazine covered the restricted application option under Social Security, which is an exception to the

regular filing rules. But it’s only available to people who were born before Jan. 2 1954. If you were born before that, are currently younger than 70, and are either married and/or divorced, revisit the column in the February issue for those details.

This article is for those who were born after this date and may be eligible for dual entitlement.

Dual entitlement means that you are eligible to draw a Social Security benefit from two different work records. Dual entitlement is common when a married couple both have Social Security work records or when a divorced worker’s former spouse also has a Social Security work record, as long as the marriage lasted at least 10 years.

When you are dual entitled, you typically receive the higher of one of two benefits: either the benefit that you earned for yourself, or the benefit that a spouse or former spouse earned for you.

Deemed filing is when you claim Social Security and you are dual entitled—you are deemed to have simultaneously filed for both your own benefit and the benefit that a spouse/ former spouse has earned for you. It’s easiest to understand

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these rules by looking at examples. The following scenarios assume that the individual is old enough to draw Social Security, but keep in mind that the minimum retirement age (MRA) can vary depending on different circumstances.

John was married to Lisa for 12 years before they divorced. He is now married to Rose. Lisa has not remarried.

A spouse cannot draw from a working spouse’s work record until the working spouse begins to draw his or her own benefit or dies. In this example, John cannot draw a benefit from Rose’s work record until either Rose begins to draw her own benefit or dies. And Rose cannot draw a benefit from John’s work record until John begins to draw his own benefit or dies.

An individual cannot draw from a former spouse’s work record until the former spouse reaches age 62 or dies. A former spouse does not have to wait

BY JAMES MARSHALL

Federal Benefits Expert

for the former spouse to begin drawing his or her benefit. In this example, Lisa is still dually entitled with John because she hasn’t remarried. John is no longer dual entitled with Lisa because he is now dually entitled with Rose. If Lisa doesn’t remarry before age 60, she could potentially qualify for a widow benefit from John’s work record.

As long as John has reached age 62 or passed away, Lisa may draw a benefit from John’s work record. Just keep in mind that unless John has passed away, Lisa will automatically receive the higher of the two benefits.

In many situations, people who are dually entitled are often collecting a benefit from their own work record while both people are still alive.

Let’s say John’s full benefit is $2,000/month, Lisa’s full benefit is $2,200/month, and Rose’s full benefit is only $500/ month. Remember, the full benefit is the amount of Social Security at full retirement age (FRA). This is often called the primary insurance amount (PIA), and the benefits payable are based on the worker’s PIA. Assume they were all born in 1958 and their FRA is 66 and 8 months. When Lisa reaches her MRA (age 62), if John has already reached his 62nd birthday, she will be eligible for either 71.7 percent of her full benefit or 33.3 percent of John’s

full benefit. In this case, it’s obvious her full benefit is larger, so she will receive her own benefit ($1,577/month) while John remains alive.

Let’s say John waits until his FRA to claim his full benefit, but Rose begins to draw her benefit at her MRA (age 62). Rose will initially begin drawing 71.7 percent of her own benefit—$358/month. She is unable to draw from John’s work record until he either begins to draw his own benefit or dies.

Rose is also “deemed” to have simultaneously filed for her spousal benefit at age 62, even though she is unable to receive it. Deemed filing will lock her

in at 33.3 percent of John’s full benefit once he begins claiming his own benefit. Rose will not qualify for 50 percent of John’s full benefit if she applies for Social Security before her own FRA. But since 33.3 percent of John’s full benefit is larger than 71.7 percent of her own benefit, Rose’s benefit will increase once John begins to draw Social Security.

Fast forward: If John passes away first, as widows, both Lisa and Rose’s benefits could be increased to match the amount of John’s larger benefit. The widow benefits are based on the age that the individual claims the actual widow benefit, and if

both are beyond their FRA by the time John passes away, each of the widows would be entitled to 100 percent of the Social Security benefit that John was drawing at the time of his death.

Since Social Security benefits can be complex and options can vary widely among individuals, feel free to reach out to the Federal Benefits Institute if you have any additional questions.

You can also refer to www.ssa. gov/planners/retire/deemedfaq. html for more details JAMES MARSHALL IS THE PRINCIPAL AT FEDERAL RETIREMENT PLANNING, LLC (WWW. FEDERALRETIREMENTINFO.COM) AND A REGULAR CONTRIBUTOR TO NARFE’S FEDERAL BENEFITS INSTITUTE WEBINARS AND NARFE MAGAZINE.

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NARFE’S PREMIER NATIONAL CONFERENCE

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PEGGY GRANDE

Federal Benefits Expert

FBI Special Agent Executive (Ret.)

Tammy Flanagan’s 10 Most Fascinating Feds

Lessons Learned Through the FBI

Former Executive Assistant to President Ronald Reagan

“

Lead, Live and Leave a Lasting Legacy

I am so happy I attended FEDcon18!

I learned so much in the breakout sessions about my benefits and NARFE.

WESTIN KIERLAND RESORT AND SPA SCOTTSDALE, AZ ATTENDEE ROOM RATE: $115 More information is available at www.narfe.org/fedcon20.

NARFE ANNUAL MEMBERSHIP MEETING

Sunday, August 30, 2020 9 a.m.-12 p.m., Westin Kierland Resort and Spa, Scottsdale, AZ Prior to FEDcon20 kicking off Sunday afternoon, NARFE will hold its Annual Membership Meeting where members are invited to join and hear national officer reports and other information on the state of the association.

FEDCON20 BREAKOUT SESSION LINEUP DATE/TIME

Monday 11 a.m. - 12:30 p.m.

Monday 2:30 - 4 p.m.

Tuesday 11 a.m. - 12:30 p.m.

Tuesday 2:30 - 4 p.m.

FEDERAL BENEFITS INSTITUTE I

FEDERAL BENEFITS INSTITUTE II

Be Prepared for Life’s Events

Preparing for Retirement: Everything You Need to Know

The Four Things Which FEHB You Can Change Plan After Is Right for You? You Retire

Be Prepared for Life’s Events

Medicare Part B and FEHB

Planning Your Estate in a Constantly Changing Environment

Making the Most of Your TSP

ADVOCACY I

ADVOCACY II

NARFE LEADERSHIP

LIFESTYLE

Legislative Update: Build a Chapter Cybersecurity: How to Be a Where We’ve Been Leadership What the FBI NARFE Voice for and Where We’re Succession Knows That You Change Going Strategy Don’t but Should

How NARFE-PAC Works for You

Effective Advocacy Through Relationship Building

How to Legislative Update: Influence PolicyWhere We’ve Been Making: Holding and Where We’re Effective Going Meetings

Leading NARFE-PAC in 2020 and Beyond

Honing Your Advocacy and Leadership Skills: Training for NARFE Legislative Leaders

NARFE.org/fedcon20

Create MustAttend Chapter Meetings

Caring for Me, Caring for You: Managing the Caregiver Role

Membership Recruitment: How to Do It Right

The Power of Perspective

NARFE AMS Training

How to Stay Healthy and Active for the Rest of Your Life

Cover Story

DALE CABANISS MODERNIZING FEDERAL WORKFORCE MANAGEMENT Last September, Dale Cabaniss was confirmed as the newest director of the Office of Personal Management (OPM). Several of her previous positions fostered her experience in federal civil service policy. In the mid-1990s, Cabaniss was chief counsel to the Senate Governmental Affairs Subcommittee on Post Office and Civil Service. In 1997, she was appointed to the Federal Labor Relations Authority and was later appointed as its chair. Prior to her retirement from federal service in 2018, Cabaniss served as Republican clerk of the Senate Appropriations Subcommittee on Financial Services and General Government.

Soon after her confirmation, NARFE National President Ken Thomas sat down with her to talk about NARFE and NARFE’s priorities. During their conversation, they covered a wide range of issues affecting federal employees and retirees. NARFE Magazine editors followed up with this interview to help spotlight some of these issues for our readers.

Q: WHAT IN YOUR PAST EXPERIENCE WILL SHAPE YOUR LEADERSHIP AT OPM?

A

I am grateful to have had the opportunity to spend my career in public service. I worked in the United States Senate for over 20 years and almost ten years in the executive branch. For eight years I had the honor of serving as the head of independent federal agency.

During my time as a staff member in the U.S Senate, I worked in a senator’s personal office, on the Homeland Security and Governmental Affairs Committee, and on the Appropriations Committee. In each position I was actively engaged in issues critical to the effective and efficient operation of government

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agencies and issues impacting the federal workforce. These roles also gave me the chance to work closely with federal employees throughout the federal government.

My time working on Capitol Hill and in the executive branch has given me a comprehensive understanding of the challenges facing federal employees and their agencies. This experience has also given me a profound sense of the responsibility we all have to serve the American people. I am grateful to work with so many dedicated civil servants as we strive to support the ability of agencies to deliver on their missions, provide excellent service, and be effective stewards of taxpayer dollars.

Above from left: Ken Thomas, Narfe National President; Alan Lopatin, NARFE Legislative Counsel; and OPM Director Dale Cabaniss Right from left: Ken Thomas, Narfe National President; Jessica Klement, NARFE Vice President, Policy and Programs; and OPM Director Dale Cabaniss

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DA L E C A B A N I S S

MODERNIZING FEDERAL WORKFORCE MANAGEMENT

Q: HOW DO YOU PLAN TO MOVE FROM PAPER PROCESSES TO ELECTRONIC PROCESSES, MAKING FEDERAL RETIREMENT CLAIMS PROCESSING SIMPLER, QUICKER, AND MORE MODERN?

A

One of my highest priorities is continuous improvement to the way OPM serves those who have dedicated their careers to serving our nation.

OPM management must do more to support our employees in Retirement Services to ensure they have the tools they need to get the job done. The individuals at OPM’s Retirement Services, located in Boyers, Pennsylvania and at our call center in Butler, Pennsylvania are extremely dedicated and provide professional customer service. However, numerous challenges to processing retirement claims remain.

In my short tenure, I have begun a comprehensive review of what additional resources we need in order to ensure federal retirement claims are processed in a faster manner, telephone calls are answered, and questions are resolved. We are actively working to ensure our employees have the tools they need to improve the way we serve our customers so that every annuitant receives the level of service they deserve.

In the longer term, OPM will continue to work in cooperation with agencies and payroll providers toward a paperless electronic process.

In the meantime, we need to focus on the federal annuitants and their families who need OPM service today.

Q: YOU ARE THE LEADER OF THE NATION’S BIGGEST HEALTH PLAN. WHAT DO YOU ENVISION FOR THE FEDERAL EMPLOYEES HEALTH BENEFITS (FEHB) PROGRAM? DO YOU SEE A WAY FEHB CAN BETTER COORDINATE WITH MEDICARE?

A

OPM has a multi-year focus on improving quality and affordability in the FEHB program. This is essential because FEHB is the largest employer-sponsored health insurance program in the world and covers more than 8 million federal employees and their families. Also, as of 2019, OPM now offers dental and vision plans to more than 6.9 million service members and military families through FEDVIP.

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In addition, for several years OPM has encouraged our health care carriers to make proposals that allow members to maximize their benefits under FEHB and Medicare, such as reduced cost sharing under hospital, medical or pharmacy benefits for members with Medicare Part B. Many FEHB carriers have responded to this initiative and improved their benefits that coordinate with Medicare. In the future, OPM plans to continue our focus on quality, affordability, and maximizing value to our FEHB Program enrollees.

Q: WHAT’S YOUR VISION FOR THE FUTURE OF FEDERAL BENEFITS?

A

OPM is looking to attract skilled and talented candidates to serve in the federal workforce of the future. OPM’s goal is to transform hiring, pay, and benefits across the federal government to build and retain the best possible civilian workforce.

One critical example is the President’s leadership in enacting paid parental leave for federal employees. The Federal Employee Paid Leave Act will provide up to 12 weeks of paid leave to federal workers following the birth, adoption, or foster placement of a child – a groundbreaking addition to federal benefits. OPM is working on regulations to ensure this benefit will be available in October 2020.

As previously mentioned, effective in 2019, OPM now offers dental and vision plans to more than 6.9 million individuals who are eligible as military retirees and their families, members of the Retired Reserve, non-active Medal of Honor recipients, and survivors and family members of active-duty service members.

In addition, current TRICARE Dental Program (TDP) beneficiaries, including military reservists and active duty military family members will be eligible for dental coverage under FEDVIP starting with the first contract year beginning on or after January 1, 2022. Furthermore, OPM has developed proposals to improve healthcare quality and affordability in the Federal Employees Health Benefits Program, and to modernize Federal employee retirement benefits for the needs of the 21st century workforce.

Q: FEDERAL COMPENSATION RECEIVES A LOT OF MEDIA SCRUTINY, WHILE PAY CONTINUES TO LAG BEHIND THE PRIVATE SECTOR. DO YOU FEEL GENERALLY THAT FEDERAL EMPLOYEES ARE OVERCOMPENSATED OR UNDERCOMPENSATED?

A

Federal employees are crucial to effective operations of government. Compensation is an important issue because we value the critical work civil servants do on behalf of the American people and want to ensure they are compensated fairly.

During his tenure, President Trump has signed a series of pay raises for federal employees – 2.1% in 2017; 1.9% in both 2018 and 2019; and 3.1% for 2020. The Trump Administration’s cumulative increase over four years is 9%.

Again this year, President Trump has proposed a pay increase for federal workers and has also proposed measures to ensure that we reward the highest performing federal employees.

The federal government is facing critical shortages in certain fields such as cybersecurity and information technology. To address these issues, the President has proposed expanding the authority to create critical pay positions up to the rate for the Vice President’s salary of $246,900 in 2019. Further, the President has proposed to expand the total number of positions that may be approved

Above from left: Jessica Klement, NARFE Vice President, Policy and Programs; Ken Thomas, Narfe National President; Dale Cabaniss, OPM Director; Alan Lopatin, NARFE Legislative Counsel; and Jonathan Blythe, OPM Acting Chief of Staff.

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DA L E C A B A N I S S

MODERNIZING FEDERAL WORKFORCE MANAGEMENT

for critical pay authority. Another proposal in the President’s budget would authorize agencies to pay a special incentive to employees with high-demand or shortage skills.

As we look to the future, we believe there should be a greater emphasis on performance over longevity. We must ensure our federal compensation system can attract talent to the federal workforce in today’s ever-changing economic landscape. OPM is working to improve employee performance management and engagement through targeted approaches to increase mission delivery and service to the American people.

Q: GOVERNMENT-WIDE CIVIL SERVICE REFORM IS FREQUENTLY TALKED ABOUT BUT RARELY ACTED ON. WHAT’S YOUR VISION FOR HOW THE CIVIL SERVICE SHOULD BE MODERNIZED?

A

The President’s Management Agenda (PMA) provides OPM with a long-term roadmap for the future. OPM is committed to meeting our mission, service, and stewardship objectives on behalf of the American people and preparing the federal workforce to address critical challenges our government will face in the 21st Century.

For OPM, that means recruiting and retaining candidates who have the talent and skills we need to provide excellent government service to the American people.

OPM cannot help government meet modern management challenges alone. This is why OPM is working with Congress as necessary, to enact legislation that will foster improvements and enable agencies to support their employees and give people the tools they need to attract talent for the workforce of the future.

Q: HOW DOES OPM BALANCE THE NEED FOR HIRING REFORM—AND TALENT RECRUITMENT/RETENTION GENERALLY—WITH THE RETIREMENT BENEFIT CUTS TOUTED BY THE ADMINISTRATION?

A 30

OPM is leading efforts to modernize the federal civil service for the 21st Century

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by improving performance management and engagement, reskilling and redeploying human capital resources, and enabling efficient hiring practices.

The measures we need to attract the best possible civilian workforce are ever evolving.

It’s important that the federal workforce adapt to make the federal government an attractive option for the workforce of the future.

We know that performance and merit is critical to employee satisfaction. In the 2019 Federal Employee Viewpoint Survey (FEVS) results, rather than expressing concern about overall compensation, employees indicated their greatest priority involved lack of performance-based rewards and perceived lack of merit system principles.

Once individuals join the federal workforce, we must ensure we have the right approaches in place to encourage them to stay.

Benefits to attract the workforce of the future will continue to evolve. As mentioned previously, paid parental leave will be important component of compensation for new federal employees. As we have seen, retirement benefits have already evolved— from CSRS to FERS. As we enter the second decade of the 21st Century, OPM will continue working to ensure we have a government responsive to the people it serves, agile in delivering on its mission, and responsible as a steward of taxpayer dollars.

Q: GIVEN THAT ONLY HALF OF THE FEDERAL CIVILIAN EMPLOYEES ARE COVERED BY TITLE 5, DO YOU BELIEVE THAT OPM SHOULD HAVE BROADER AUTHORITY OVER CIVIL SERVICE POLICY?

A

In some instances, Congress has made the determination that it is appropriate that some agencies have separate personnel systems.

However, as NARFE members may know, OPM continues to serve those non-Title 5 employees through the administration

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DA L E C A B A N I S S

MODERNIZING FEDERAL WORKFORCE MANAGEMENT of federal health insurance (FEHB) and retirement programs (CSRS, FERS).

OPM continues to advance its core missions, works to contribute to efficiency across the federal workforce, and strives to more effectively serve our customers: jobseekers, employees, beneficiaries, and other federal agencies, and our ultimate customer, the American people.

Q: CONGRESS PASSED THE ADMINISTRATIVE LEAVE ACT OVER THREE YEARS AGO. WHEN WILL OPM ISSUE THE FINAL ADMINISTRATIVE LEAVE REGULATIONS TO ALLOW EMPLOYEES AND AGENCIES TO UTILIZE THE NEW LEAVE CATEGORY?

A

OPM issued final regulations on the “weather and safety” leave portion of the Administrative Leave Act in April 2018 and issued implementing guidance in November 2018.

OPM’s final regulations on administrative leave, investigative leave, and notice leave are still under development. The agency is working closely with the Department of Defense and the Department of State because of their unique mission requirements for employees that were not envisioned when legislation was initially passed. OPM is currently working with Congress, the Departments of Defense and State to provide a legislative proposal to address the concerns which have arisen from these two agencies.

Q: NARFE MEMBERS EXPERIENCED A RUDE AWAKING IN 2016 WITH A SIGNIFICANT UNFORESEEN INCREASE IN LONG-TERM CARE INSURANCE PREMIUMS. WITH THE RECENT ROLLOUT OF FLTCIP 3.0, DO YOU THINK THE FEDERAL LONG TERM CARE INSURANCE PROGRAM NEEDS FURTHER CHANGES?

A

The Federal Long Term Care Insurance Program (FLTCIP), established by an act of Congress in 2000, required OPM to provide a long-term-care insurance program to federal employees and annuitants, retired military service members, and qualified relatives.

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The FLTCIP provides industry-leading benefits and offers flexible options that allow federal family members to tailor coverage to meet their needs. In order to continue to improve and to also minimize significant increases, OPM recently established FLTCIP 3.0. FLTCIP 3.0 includes added features intended to reduce program risk and address premium rate stability, while providing comprehensive long-termcare coverage.

OPM continually evaluates all our benefit programs and works to make sure we are providing the quality of service expected from those who depend on us.

Q: NOW THAT CONGRESS HAS PREVENTED OPM FROM MERGING WITH GSA FOR THE TIME BEING, WHAT IS YOUR VISION FOR THE FUTURE OF THE AGENCY? DO YOU FEEL IT’S BEST SUITED TO BE MERGED WITH FEDERAL PROCUREMENT AND ACQUISITION FUNCTIONS?

A

The National Defense Authorization Act of 2020 included a provision requiring the National Academy of Public Administration (NAPA) to conduct a study prior to any reorganization efforts. The study will review OPM’s mission, core functions, and challenges OPM faces.

The study will also make recommendations to address OPM’s challenges.

The hallmark of good government is to focus on meeting the needs of our citizens. As OPM Director, I welcome this opportunity for OPM to work with NAPA and our stakeholders in Congress so we can better assess, plan, and make data-driven decisions that will benefit the American people. The idea of one administrative operations agency is not new— there are other states and governments in which administrative functions are combined under one agency.

In the meantime, while the study moves forward, OPM will continue to strengthen the way we serve our customers, deliver on mission imperatives, and align our capabilities with the President’s Management Agenda’s objectives of mission, service, and stewardship.

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By Everett A. Chasen

Here’s what federal employees should know about being told to relocate by their agency—and what their options are if they receive a relocation letter.

Many federal employees aren’t aware that the government can order them to move anywhere in the nation—and if they don’t agree to go, their employment can be terminated. Think it won’t happen to you? Ask someone who works for the U.S. Department of Agriculture (USDA).

On June 13, 2019, Secretary of Agriculture Sonny Perdue announced that the USDA would relocate its Economic Research Service (ERS) and National Institute of Food and Agriculture (NIFA) from Washington, DC to Kansas City, MO.

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Nearly 550 USDA employees were told they would need to relocate as a result of the Secretary’s decision. Originally, the relocation process was scheduled to be completed by October 2019, but that date has since been pushed back to March 2020. At press time, the relocation hadn’t taken place.

In a letter to USDA employees, Secretary Perdue wrote, “I want to make sure that this transition and the coming months are as smooth and as minimally disruptive as possible.” Many USDA employees affected by the move, however, found their lives significantly changed. According to data obtained by The Washington Post, two-thirds of affected employees have decided to leave their jobs rather than move, despite an offer of one month’s salary as a relocation bonus.

“

If (an) employee accepts directed reassignment to a new commuting area, the agency is responsible for the relocation costs of such a move.”

ANTHONY MARUCCI, DIRECTOR OF COMMUNICATIONS FOR OPM

Those deciding to leave the agency wrote the newspaper, including a woman who, along with her husband, had just had a second child and recently purchased a home in Virginia, and a woman who did not want to leave her daughter and her new grandchild in addition to fearing that the Midwest would be “less than welcoming” to a transgender person like her.

The 500-plus USDA employees join others from throughout the government who have been told they will need to relocate to another part of the country or give up their government jobs through no fault of their own. While USDA’s directed reassignments may affect the largest number of federal employees since 2005, when moves were made as a result of the Department of Defense’s (DOD) Base Realignment and Closure Commission recommendations, such forced changes to job stations occur every year [although the Office of Personnel Management (OPM) does not 36

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maintain statistics on how many take place]. No federal agency is exempt from them.

RIGHTS OF FEDERAL EMPLOYEES

If federal employees receive letters telling them they will be reassigned to another area, what are their rights? Can they just say no and expect to be offered another job? Are they automatically eligible for relocation benefits?

Can they ask their agency for hardship exemptions because of their children’s ages or their own handicaps?

According to Anthony Marucci, director of communications for OPM, employees designated for relocation have only two options: “An employee can accept or decline a reassignment outside of his or her commuting area.”

In deciding who is to stay and who to go, an agency has little leeway. “Moves should be based on nonpersonal factors,” explains Marucci. However, “at its option an agency may adopt a policy to select employees for reassignment on the basis of considerations such as retention standing, total service with the agency, and length of time in a position or in the organization.”

In other words, those who hope to be exempted for a move because their child is in his last year of high school, or because their spouse cannot successfully pursue a career in the new location, are out of luck.

Agencies can reassign an employee when there is a legitimate organizational reason for the reassignment and the vacant position is at the same grade or rate of pay as the employee’s present position. Marucci says, “there is no minimum amount of notice (of reassignment) required per OPM rules. Agencies should provide notice consistent with their Merit Promotion plans and bargaining unit agreements.”

“If (an) employee accepts directed reassignment to a new commuting area, the agency is responsible for the relocation costs of such a move,” he continues, adding that the General Services Administration (GSA), not OPM, is responsible for administering the Federal Travel Regulation that covers relocation expenses.

GSA RULES AND RESPONSIBILITIES GSA’s Federal Travel Regulation Chapter 302 (available online at www.gsa.gov/policyregulations/regulations/federal-travel-

GSA’s Federal Travel Regulation Chapter 302 explains what the government will pay for in a directed reassignment, what it may pay for depending on the policies of individual agencies, and what it will not cover.

regulation-ftr/Chapter%20302) explains what the government will pay for in a directed reassignment, what it may pay for depending on the policies of individual agencies, and what it will not cover.

All agencies must pay for transportation to new duty stations for employees and their families if the new station is more than 50 miles from the old station. They must also pay for per diem costs during the time the employee is traveling. Agencies must pay, within limits, for the costs of the sale of a residence at the employee’s old duty station, and for costs associated with the purchase of a residence at new official duty stations.

These costs include broker’s fees and real estate commissions, appraisal costs, costs of advertising not included in broker’s fees, and other miscellaneous expenses.

If applicable, agencies will pay for the settlement expenses for a lease that has not expired on the residence or mobile home lot the employee used for a permanent residence at his or her old duty station.

Agencies will also pay for expenses associated with buying a new home: up to 5 percent of the actual purchase price for the new residence. In order to be reimbursed for these expenses, employees must be living in their old homes at the time they are notified of their transfer. If they lose money on the sale of their residence, employees’ agencies will not reimburse them.

Agencies are also required to pay for the shipment of up to 18,000 pounds of household goods and for 60 days of storage of those goods while in transit—90 days if the employee is moving to or from a duty station outside of the continental United States (for both groups that time can be extended another 90 days if the agency approves and there are extenuating circumstances). If professional books, papers and equipment cause a transferred employee to exceed the 18,000 pound limit, agencies can choose to transport any papers they believe are necessary for the employee’s federal job.

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Some agencies will reimburse employees and their spouses for a house hunting trip to their new area, for temporary quarters employees may require when they first move to the new area, for shipping up to two cars, for using a relocation services company to help them buy or sell their residence, for property management services to help them manage their old residences as rental properties instead of selling them, and even for transporting a mobile home or a boat. Some departments also offer home sale programs in which relocation services companies buy transferred employees’ old homes and then independently market and sell the residence.

Unlike most temporary duty travel, relocation benefits are taxable in accordance with federal tax law, but the government‘s objective is to reimburse employees for “substantially all” of those taxes.

IF YOU SAY NO

If an employee declines an agency’s directed reassignment to a new commuting area, “the agency must use the adverse action regulations at 5 CFR part 752 to remove the employee,” explains Marucci.

Employees who are removed by adverse action because they have declined to be relocated are “usually eligible for most of the benefits that are available to a displaced employee separated by reduction in force,” he notes. These can include severance pay, unemployment compensation, lump sum payments of unused annual leave, and continuation of health benefits under the Federal Employees Health Benefits (FEHB) and Federal Employees Group Life Insurance (FEGLI) programs for a period of time.

Employees who are removed by adverse action because they have declined to be relocated are usually eligible for most of the benefits that are available to a displaced employee separated by reduction in force.

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Agencies may also provide assistance to employees who do not want to move, if they are eligible. Help can include counseling employees on career transition; providing them with incentives, such as lump sum payments, to separate from government service; giving them priority in being selected to be rehired when jobs become vacant; offering information on retirement options they may be eligible for; and retraining them for other work within the agency or the federal government.

Agencies may also provide assistance to employees who do not want to move, if they are eligible.

Marucci says the aforementioned are best practices, not requirements, and agency human resource officers should provide both employees and managers with information on OPM’s reassignment regulations and on potential benefits individual agencies may offer.

SPECIAL RULES FOR SENIOR EXECUTIVES

Some federal employees are more susceptible to directed reassignments than others, including those who have signed agreements enabling their agencies to transfer them as necessary and members of the Senior Executive Service (SES), who can be reassigned to any SES position in the agency for which they are qualified.

For SES members, reassignments within the same commuting area require a 15-day advance written notice, which can be waived only when the SES employee consents in writing. Reassignments to different commuting areas require consultation with the executive and a 60-day advance written notice that can be waived only when the appointee consents.

Any agency can remove a career SES who fails to accept a directed reassignment. Career senior executives can be transferred to another agency, however, only with the consent of the employee and his or her new agency.

There are some exceptions, however.

Career SES employees cannot be reassigned

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involuntarily within 120 days of the appointment of a new agency head or a new immediate supervisor who has the authority to make an initial appraisal of the career appointee’s performance. This is to provide a “get acquainted” period to allow the new agency head and noncareer appointees to get to know the employee and his or her skills and expertise.

After that time has elapsed, career members can be reassigned to any position for which they are qualified. Agencies can remove any career SES appointee who does not accept a directed reassignment under adverse action procedures.

“

We do a quick analysis to make sure (the directed relocation request) was done properly. Then, we advise them as best we can about their options.”

BILL VALDEZ, PRESIDENT OF THE SENIOR EXECUTIVES ASSOCIATION

Bill Valdez, president of the Senior Executives Association (SEA), the professional association for career members of the SES and equivalent positions, supports the requirement for SES mobility. “We think it’s a good requirement if it’s done properly,” he says. “It was written into the law to ensure there is a mobile senior executive corps. Mobility was one of the hallmarks of the creation of the senior executive service (in 1979).”

SEA “always responds to the needs of our members when they come to us with 40

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relocation issues,” Valdez continues. “We do a quick analysis to make sure (the directed relocation request) was done properly. Then, we advise them as best we can about their options.” The analysis includes determining whether the request was made in the proper time frame.

Valdez cites higher costs of living in the reassignment location and the needs of family members as considerations many SEA members deal with when directed to be reassigned. “Work with your executive resources officer to make sure you get all the benefits you can possibly get,” he notes. “There might be some incentives or relocation allowances you are entitled to, but, in general, you won’t get them unless you ask for them.”

CONCLUSION

Despite the benefits the government offers those who relocate, it’s still a difficult path for both employees and agencies.

Many of the USDA employees who declined to be relocated will lose or have already lost their jobs, taking their considerable expertise on USDA’s mission with them—and demonstrating that agencies should only use their power to direct their employees to relocate with great care and after considerable thought and study.

In his letter to employees, Agriculture Secretary Perdue wrote, “I believe that this decision will only improve the great work that we’ve done.” Time will tell if he is correct.

— EVERETT A. (EV) CHASEN IS A WRITER AND COMMUNICATIONS CONSULTANT IN THE WASHINGTON, DC AREA. HE IS RETIRED FROM THE FEDERAL GOVERNMENT AFTER 35 YEARS OF SERVICE.

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1 Your out-of-pocket costs may vary depending on plan benefits, eligibility, deductible, co-insurance, and model of device chosen. This is not a guarantee of coverage or payment. Benefit is not available through all insurance plans. Please consult your plan for coverage details. 2 For people with typical hearing loss and well-fitted hearing aids, in noisy situations. 3 Juul Jensen 2018, Oticon Whitepaper. 4 Lithium-ion battery performance varies depending on hearing loss, lifestyle and streaming behavior.

STATE TAX TREATMENT

States With No Personal Income Taxes ALASKA FLORIDA NEVADA

NEW HAMPSHIRE1 SOUTH DAKOTA TENNESSEE2

New Hampshire: Taxes interest/dividend income at 5% if it exceeds $2,400 (single) or $4,800 (couple). $1,200 exemption for residents age 65+ (see p.45).

1

TEXAS WASHINGTON WYOMING

2 Tennessee: Taxes certain interest/dividend income at 6% if it exceeds $1,250 (single) or $2,500 (couple). Individuals age 65+ have additional means-based exemption (see p. 47).

States Exempting Total Amount of Civil Service Annuities* ALABAMA HAWAII ILLINOIS

KANSAS LOUISIANA MASSACHUSETTS

MISSISSIPPI NEW YORK PENNSYLVANIA

* In addition, the five states listed below exempt certain federal civil service annuities from taxation.

Some exemptions depend on the taxpayer’s age or dates of government service.

KENTUCKY: Amount attributable to service prior to Jan. 1, 1998, is exempt. See p. 44 for taxation of annuities attributable to service on or after Jan. 1, 1998.

MICHIGAN: Full exemption only applicable to taxpayers born before 1946. See p. 45 for taxation of federal (and other) pension income for taxpayers born in 1946 and later.

NORTH CAROLINA: Annuities not taxed if the individual had five years of federal government service as of Aug. 12, 1989.

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If otherwise, see p. 46.

OKLAHOMA: CSRS annuities excluded from taxation. Taxpayers with annuities with both FERS and CSRS components may exclude the portion attributable to CSRS service.

OREGON: Annuities not taxed if individual retired before Oct. 1, 1991. Those who retired after Oct. 1, 1991, are taxed only on that portion of the annuity attributable to federal government service after Oct. 1, 1991.

2019

TAX YEAR

FEDERAL ANNUITIES Other Exemptions

ALABAMA: SS, federal retirement, military retirement and state pension income are exempt. Income from all defined-benefit pension plans is exempt. Income on accounts like an IRA or 401(k) will be taxed as regular income.

ARIZONA: SS is exempt. Up to $2,500 total of military, civil service, and Arizona state and local government pensions are exempt.

Up to $3,500 if the taxpayer receives benefits, annuities or pension in retire or retainer pay of the uniformed services are exempt. Additional personal exemption for all residents age 65+.

ARKANSAS: SS and military retirement benefits are exempt.

Exempts up to $6,000 in federal retirement, in state and out of state or local government and private pension

Key to Abbreviations AGI=Adjusted Gross Income CSRS=Civil Service Retirement System FERS=Federal Employees Retirement System HH=Head of Household IRA=Individual Retirement Account MFJ=Married Filing Jointly MFS=Married Filing Separately QW=Qualified Widow(er) RR=Railroad Retirement* SS=Social Security *Federal law does not permit states to tax Railroad Retirement income. Exemption is not noted in roundup except where it affects provisions.

The latest edition of the NARFE state tax roundup is here just in time for tax filing. The following pages contain the most up-to-date information on your state’s tax situation. Use this guide to learn if there have been any changes to the way your state treats your federal annuity or retirement income. The NARFE team combed through every state’s tax code to provide a comprehensive guide in the pages that follow, so give it a good, thorough read. And don’t forget to share the information with others so they don’t miss out on potential savings.

This roundup of state tax treatment of federal annuities and other tax information is presented for informational purposes only and does not constitute professional tax advice. NARFE has taken all reasonable efforts to ensure that the information contained in this roundup is accurate at the time of publication; however, NARFE cannot guarantee the completeness or accuracy of this information and is not responsible for any errors or omissions. Please consult a tax professional for advice in preparing tax returns.

The information also is available on the NARFE website, www.narfe.org.

income. IRA distributions can be included as part of the exemption if the taxpayer is age 59½+. Out of state government pensions also qualify for the exemption.

CALIFORNIA: SS is exempt.

Additional $122 personal exemption for residents age 65+. All private, public and military pensions are taxed.

COLORADO: SS income that is not taxed by the federal government is exempt. $24,000 pension/annuity exemption for all taxpayers age 65+. $20,000 pension/annuity exemption for all taxpayers between the ages of 55 and 64. The same exemption applies to SS and other qualifying retirement income (including federal civil service annuities, military retirement and all out-of-state pensions).

CONNECTICUT: SS is exempt if federal AGI is below $75,000 if single and AGI of $100,000 or less if MFJ. Military retirement pay is exempt. All

out of state government and federal civil service pensions are fully taxed.

DELAWARE: SS is exempt. Taxpayers age 60+ may exclude $12,500 of investment and qualified pension income, including federal civilian, military and out-of-state government pensions as well as IRAs and 401(k)s, and qualify for an additional tax credit of $110. Taxpayers under age 60 may exclude $2,000. Taxpayers age 65+ are entitled to an additional standard deduction of $2,500 (if not itemizing).

Single or MFS taxpayers age 60+ as of Dec. 31, 2018, or totally disabled, may exclude $2,000 if earned income is less than $2,500 and AGI is $10,000 or less. If MFJ and both spouses are age 60+ as of Dec. 31, 2018, or totally disabled, may exclude $4,000 if earned income is less than $5,000 and AGI is $20,000 or less.

DISTRICT OF COLUMBIA: SS is exempt. For taxpayers age 62+, DC and federal government survivor benefits are exempt. Other retirement income is not exempt. State government and W W W. N A R F E . O R G

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43

public pensions are taxed. For those born before Jan. 2, 1955, standard deductions increase by $1,300 for MFJ/MFS/QW and $1,650 for S/HH. GEORGIA: SS is exempt. Taxpayers who are age 62-64, or permanently and totally disabled regardless of age, may exclude $35,000 of retirement income. For taxpayers age 65+, the retirement income tax exclusion is $65,000. Retirement income includes income from pensions and annuities, interest income, dividend income, net income from rental property, capital gains income and income from royalties. Up to $4,000 of the maximum allowable exclusion may be earned income.

HAWAII: SS is exempt. Federal retirement, military retirement, state or county retirement system pension income, and distributions from exclusively employer funded pensions are exempt. Out of state government pensions are exempt. IRA and 401(k) distributions are treated as they are for federal taxes. Distributions to employer funded pensions to which an employee also contributed are partially taxed.

Additional personal exemption of $1,144 per person age 65+.

IDAHO: SS is exempt. Retirement benefits deduction available for CSRS annuitants who established CSRS eligibility prior to 1984 and are age 65+, or 62+ and disabled, in the amount of $34,332 (if single) or $51,498 (if MFJ) minus SS and RR received. Deduction includes workers under the Foreign Service Retirement and Disability System (FSRDS).

Retirement benefits deduction also available for military retirees. Persons using MFS status are not eligible for the retirement benefits deduction.

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Extra standard deduction for persons age 65+.

ILLINOIS: SS and income from any qualified employee benefit plan are exempt (including federal government plans). Pension or retirement savings accounts like 401(k) plans, an IRA, or a traditional IRA that has been converted to a Roth IRA are exempt.

Extra personal exemption for persons age 65+.

INDIANA: SS is exempt. Taxpayers age 60+ may exclude as much as $5,000 of military retirement income.

Taxpayers age 62+ may deduct up to $16,000 from a federal civil service annuity minus the total amount of any SS or RR benefits. Taxpayers age 65+ can take additional personal exemption of $1,000. Additional personal exemption of $500 if federal AGI is less than $40,000 for residents age 65+.

prior to Jan. 1, 1998, are excluded.

Annuities attributable to service after Jan. 1, 1998, are included as pension income, of which taxpayers may exclude up to $31,110. An additional credit of $40 for each individual age 65+.

LOUISIANA: SS is exempt. Federal retirement annuities are exempt.

In addition, persons age 65+ may exclude up to $6,000 of annual retirement income from their taxable income if single, $12,000 if MFJ. MAINE: SS and military retirement benefits are exempt. The taxpayer and spouse (if married) may each deduct from federal AGI $10,000 of eligible pension income, including federal civil service annuity income. Except for military retirement pay, the $10,000 deduction must be reduced for SS and RR benefits.

KANSAS: SS is exempt if federal AGI is $75,000 or less. Federal, military and in-state/local pensions are exempt. Additional $850 deduction for those age 65+ ($700 each if MFJ or MFS).

MARYLAND: SS is exempt. If age 65+ or totally disabled, you may exclude up to $31,100 in pension income, under certain conditions.

Additional $1,000 exemption for residents age 65+. Military retirement subtraction up to $15,000 if 55+; $5,000 for those under age 55. To qualify for this subtraction, you must have been a member of an active or reserve component of the U.S. military, an active duty member of the commissioned corps of the Public Health Service, the National Oceanic and Atmospheric Administration, the Coast and Geodetic Survey, or a member of the Maryland National Guard, or the member’s surviving spouse or ex-spouse.

KENTUCKY: SS is exempt. Federal civilian and military retirement annuities attributable to service

MASSACHUSETTS: SS, federal civil service and military pensions are exempt. Tax reciprocity with local/state

IOWA: SS and military retirement benefits are exempt. Taxpayers age 55+ may exclude up to $6,000 (S, HH, QW) or $12,000 (MFJ or MFS) of pension or annuity income (including civil service annuities), self-employed retirement plan income, deferred compensation, IRA benefits or other retirement plan benefit income.

Additional $20 exemption credit for those age 65+.

2019

TAX YEAR

governments that do not tax pension income from Massachusetts public employees. Additional exemption of $700 for individuals age 65+.

MICHIGAN: SS and military pensions are exempt. Other pension and retirement benefits are taxed differently depending on the age of the taxpayer. Federal, state and local pensions are exempt for individuals born before 1946, as are private pension and retirement benefits up to $52, 808 if filing single or MFS, or $105,615 if MFJ. Taxpayers born after 1946 cannot deduct retirement income. However, once taxpayers reach 67 years of age, they can take a standard deduction of $20,000 (S) or $40,000 (MFJ) against all income, subject to conditions that depend on whether they were born before or after 1952. Additional deductions exist for SS exempt employment based on age and retirement date.

MINNESOTA: Certain types of military pensions or other military retirement pay may be subtracted from taxable income. To claim this subtraction, the qualifying income must be included in federal adjusted gross income. Taxpayers 65+ and those with a permanent total disability may be eligible for subtraction, based on income.

MISSISSIPPI: SS and retirement income from federal, state and private retirement systems are exempt, along with qualified retirement income.

Additional exemption of $1,500 for residents age 65+.

MISSOURI: Military retirement income exempt. Taxpayers with AGI under $85,000 (single, HH, MFS, QW) or $100,000 (MFJ) may

exempt the greater of $6,000 or 100 percent of any federal, state or local pension income, up to a maximum of $38,437 per taxpayer. Taxpayers with AGI exceeding the limitation may qualify for a partial exemption.

Taxpayers with AGI under $25,000 (single, HH, QW) or $32,000 (MFJ) or $16,000 (MFS) may exempt up to $6,000 of private pension income.

Taxpayers with AGI over these limits may be eligible for a partial exemption. Taxpayers age 62+ or disabled with an AGI under $85,000 (single, HH, MFS, QW) or $100,000 (MFJ) may exempt 100 percent of the taxable amount of SS or SS disability benefits. Taxpayers with AGI exceeding the limitation may qualify for a partial exemption.

MONTANA: Taxpayers with AGI $37,949 ($40,099 if MFJ) or less may exclude $4,300 of pension income; for AGI $37,950 or more, you do not qualify for an exemption. Additional exemption if age 65+. Taxpayers age 65+ may exempt $800 ($1,600 if MFJ) of interest income reported as federal AGI. NEBRASKA: Public and private pension income is fully taxed.

Taxpayers with AGI less than or equal to $58,000 MFJ or $43,000 for all other returns may deduct SS income. Military retirees may make a one-time election within two calendar years after the date of their retirement from the military. Military retirees can choose to exclude 40 percent of their military retirement benefit income for seven consecutive taxable years or can exclude 15 percent of military retirement benefit income for all taxable years beginning with the year the retiree turns 67.

NEW HAMPSHIRE: SS is exempt.

A 5 percent tax is applied only to interest and dividend income exceeding $2,400 ($4,800 for joint filers). Residents age 65+—as well as those of any age who are blind, and those under 65 who are disabled and unable to work— qualify for $1,200 exemption for taxable dividends and interest.

NEW JERSEY: SS and military pensions are exempt. Taxpayers age 62+ may exclude all or part of their taxable pensions, annuities and IRA withdrawals if their gross income for the entire year before subtracting any pension exclusion does not exceed $100,000. The maximum amount excluded depends on filing status. For tax year 2019, MFJ can exclude up to $80,000; S, HH, or QW, can exclude up to $60,000; and MFS, can exclude up to $40,000.

Under certain conditions, additional amounts from retirement plans may be eligible for special exclusion if you (and your spouse if MFJ) will never be able to receive SS or railroad benefits because your employer did not participate in either program.

Additional $1,000 personal exemption for residents age 65+.

NEW MEXICO: Retirement benefits are taxed. Taxpayers age 65+ may qualify for incomedependent retirement tax exclusion of up to $8,000 if federal AGI is less than $28,500 (S), $51,000 (MFJ, HH, QW) or $25,500 (MFS).

If age 100+, exempt from state income tax if centenarian is single.

If MFS or MFJ, both must be 100+ for total exemption, or centenarian may exempt half of community income and all of his/her separate income.

W W W. N A R F E . O R G

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NEW YORK: SS and state and federal pensions, including military and civil service, are exempt. An additional pension and annuity income exclusion of up to $20,000 is available to persons age 59½+. Outof-state government pensions can be deducted as part of a $20,000 exemption.

NORTH CAROLINA: SS is exempt.

Under the Bailey Settlement (Bailey vs. North Carolina), federal retirement benefits and military benefits are exempt only for those who had five or

more years of creditable service as of August 12, 1989.

NORTH DAKOTA: SS exempt if AGI is (S) $50,000 or less or (MFJ) $100,000 or less. Military retirement benefits are exempt. All other retirement income is fully taxed.

OHIO: SS and military pensions are exempt. General retirement‑income credit available starting at $25 if qualifying retirement income is at least $501; the credit tops out at $200 if qualifying retirement income is

$8,001 or more. Residents age 65+ are entitled to a $50 tax credit per return. Taxpayers who served in the military and receive a federal civil service retirement pension are eligible for a limited deduction if any portion of their federal retirement pay is based on credit for their military service. These retirees can deduct the percentage (in terms of years of service) of the amount of their federal retirement pay that is attributable to their military service.

Some Ohio municipalities tax federal but not state pensions.

How High Are Sales Taxes in Your State?

Combined State and Average Local Sales Tax Rates, Jan. 1, 2020

Note: City, county and municipal rates vary. These rates are weighted by population to compute an average local tax rate. The sales taxes in Hawaii, New Mexico and South Dakota have broad bases that include many business-to-business services. DC’s rank does not affect states’ ranks, but the figure in parentheses indicate where it would rank if included.

Source: Sales Tax Clearinghouse, Tax Foundation calculations, State Revenue Department websites.

Full report available at https://taxfoundation.org/2020-sales-taxes/ Credit: ©2020 Tax Foundation. Distributed under Creative Commons CC-BY-NC 4.0. Reprinted with permission.

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2019

TAX YEAR

OKLAHOMA: SS is exempt. Each individual may exclude 100% of retirement benefits received from CSRS, including survivor benefits, paid in lieu of SS to the extent that these benefits are included in the federal AGI. Retirement benefits paid under FERS do not qualify for this exclusion. However, for retirement benefits containing both a FERS and a CSRS component, the CSRS component will qualify for the exclusion. Individuals may exclude their FERS retirement benefits or other qualifying retirement income up to $10,000. Individuals may exclude the greater of 75% of their military retirement benefits or $10,000. Additional personal exemption of $1,000 for age 65+ if federal AGI is $15,000 or less (single), $25,000 or less (MFJ), $12,500 or less (MFS), or $19,000 or less (HH).

OREGON: SS is exempt. Federal pension income of those individuals who retired before Oct. 1, 1991, are not taxed. Those who retired after Oct. 1, 1991, are taxed only on that portion of the annuity attributable to government service after Oct. 1, 1991. TSP withdrawals made during retirement are eligible for subtraction based on dates of service.

If the taxpayer moves money from a TSP to another type of account, the account loses its character and future withdrawals would not be eligible for subtraction. Taxpayers age 62+ may qualify for retirement income credit if household income is below $22,500 (or $45,000 if MFJ). Additional standard deduction if age 65+ of $1,200 (single, HH), $1,000 each spouse age 65+ (MFJ, MFS and QW).

PENNSYLVANIA: SS, federal civil service retirement benefits, military retirement benefits and employer-

sponsored retirement plan benefits are exempt. Distributions from a 401(k) plan, IRA, and Thrift Savings Plan are exempt for retirees 59½+.

RHODE ISLAND: SS is only exempt for MFJ with federal AGI of $104,350 or less; $83,450 or less for single taxpayers. These income thresholds also apply to exempting up to $15,000 of qualified pension or retirement income for those age 65+.

SOUTH CAROLINA: SS is exempt.

If 65+, may deduct $10,000 of qualified retirement income. If under age 65, may deduct $14,600 of military retirement income (will increase to $17,500 next year). If under age 65, may deduct $3,000 of other qualified retirement income (including federal retirement plans).

All individuals age 65+ are entitled to a $15,000 (single) or $30,000 (MFJ) senior deduction from income, reduced by any deduction claimed for qualified retirement income.

TENNESSEE: SS is exempt. Tax only applies to certain interest and dividend income, not wages, salary or earnings from federally recognized retirement accounts.

An exemption of $1,250 ($2,500 if MFJ) is allowed against total taxable interest. Anyone age 65+ is exempt if total annual income from all sources is $37,000 or less ($68,000 or less for MFJ); those age 100+ are exempt regardless of income. Note: tax will be fully repealed in tax year 2021.

UTAH: Taxpayers born on or before Dec. 31, 1952, may be entitled to a retirement credit of up to $450 ($900 MFJ). The credit is phased out at 2.5 cents per dollar of modified AGI over $16,000 (MFS), $25,000 (single) and $32,000 (MFJ).

VERMONT: SS only exempt for single filers making less than $45,000 a year ($60,000 MFJ); partially exempt with income up to $55,000 ($70,000 MFJ). All other retirement benefits are fully taxed.

VIRGINIA: SS is exempt.

Taxpayers age 65+ may claim an age deduction: Those born on or before Jan. 1, 1939, may claim an age deduction of $12,000. Those born between Jan. 2, 1939, and Jan. 1, 1955, will have the $12,000 deduction reduced by $1 for every $1 that federal AGI exceeds $50,000 (single) or $75,000 (MFJ, MFS). Additional personal exemption of $800 if age 65+.

WEST VIRGINIA: Residents can exempt $2,000 of civil and state pensions. Military retirement income and federal law enforcement income is exempt.

Taxpayers age 65+ may exclude the first $8,000 (S) or $16,000 (MFJ) of remaining nonexempt income.

WISCONSIN: SS and military retirement benefits are exempt, as is retirement pay related to service with the Coast Guard or the respective commissioned corps of the National Oceanic and Atmospheric Administration or the Public Health Service. CSRS/FERS pay is exempt if the individual’s account was established prior to 1964 or if the individual is receiving payments from the system as a beneficiary of such an account. If age 65+, may exempt up to $5,000 of retirement income if federal AGI is less than $15,000 (S) or $30,000 (MFJ or MFS).

Additional personal exemption of $700 and a deduction of $250 if age 65+.

W W W. N A R F E . O R G

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Managing Money

PLANNING IN LIGHT OF THE SECURE ACT

A

s I wrote last month, the Setting Every Community Up for Retirement Enhancement (SECURE) Act no longer permits many nonspouse designated

beneficiaries to spread required minimum distributions (RMDs) over their lifetime (a strategy called the stretch IRA).

Instead, nonspouse designated beneficiaries are now required to liquidate an inherited IRA within 10 years of the death of the retirement plan owner.

This change has several implications. Besides losing out on years—even decades— of potential tax-advantaged growth, the 10-year rule could create a tax trap on tax-deferred retirement plans, such as the traditional TSP and traditional IRAs, with higher tax rates on withdrawals.

Several factors will play into the potential tax trap, but a couple, such as the size of the retirement plan and the number of beneficiaries, have larger roles.

For example, distributing a $100,000 inherited IRA over ten years won’t have the same potential tax consequences as distributing a $1 million inherited IRA. Likewise, five beneficiaries sharing a $1 million inherited IRA won’t have the same potential tax trap as one beneficiary inheriting the $1 million IRA. Many mistakenly believe their marginal rate is the rate 48

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2020

they pay on all of their income, but that is not the case. The United States has a progressive tax system, which means the rate of tax increases as the amount of taxable income increases. For example, here are the 2020 tax brackets for a single tax filer (for taxes due April 2021): Tax Rate Taxable Income 10% 12% 22% 24% 32% 35% 37%

$0 to $9,875 $9,876 to $40,125 $40,126 to $85,525 $85,526 to $163,300 $163,301 to $207,350 $207,351 to $518,400 $518,401 or more

Let’s say a 55-year-old nonspouse beneficiary with $100,000 of taxable income inherits a $100,000 TSP and transfers it to an inherited IRA. To satisfy the 10-year rule, he plans on taking equal distributions of $10,000 per year for 10 years (assuming no

BY MARK A. KEEN,

CFP®

growth for ease of illustration).

In this case, the entire $10,000 distribution will fall into the 24 percent tax bracket.

Now let’s assume the TSP account was $1,000,000, and his equal distribution is $100,000 per year, pushing his taxable income to $200,000.

In this case, $63,300 of the distribution is taxed at 24 percent and $36,700 is taxed at 32 percent. Total federal tax on the distribution is $26,936, for an average tax rate of about 27 percent.

Too often, we focus on strategies that allow us to pay less taxes today. Absent any real, long-term planning, most folks kick the can down the road if they can afford to do so and delay taking any withdrawals from their retirement plans until RMDs kick in. And then, they only take the bare minimum.

Ironically, this may ultimately lead to paying more taxes overall, especially in the era of the 10-year rule, which forces many beneficiaries to take larger distributions and pushes them into higher tax brackets.

The better strategy may be to intentionally recognize income when you would otherwise not have to. Here, I’m referring to converting money from a tax-deferred retirement plan to a Roth IRA

BENEFITS RESOURCES NARFE offers members a wide range of information on federal benefits.

Visit www.narfe.org/ FederalBenefitsInstitute.

and not simply taking withdrawals only to invest the money in a taxable account. If the tax rate on a Roth conversion is lower than what the beneficiary would ultimately pay, that’s a win.

Long-term planning is necessary to uncover the potential benefits of a Roth conversion. Be sure to do your research first.

Roth conversions won’t always make financial sense, and there’s certainly many pitfalls to watch out for. I’ve written several articles on the subject, including columns in the May

and June 2019 issues of NARFE Magazine, which discuss Roth conversions in light of the Tax Cuts and Jobs Act (TCJA). The TCJA’s lower, but temporary, tax rates may prove very helpful in mitigating the 10-year rule’s potential tax trap.

Beneficiaries will also need to be more strategic with their distribution strategy. One nice feature of the 10-year rule is that there are no RMDs during the 10-year period. This affords some flexibility as to the timing of withdrawals based on the beneficiary’s circumstances.

The SECURE Act’s 10-year rule will likely lead to higher tax rates on many tax-deferred retirement plans. Long-term planning will be key to mitigating this risk.

MARK A. KEEN, CFP®, IS PARTNER, KEEN & POCOCK, AND AN INVESTMENT ADVISER REPRESENTATIVE AND REGISTERED PRINCIPAL OF THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA). SECURITIES AND ADVISORY SERVICES ARE OFFERED THROUGH SFA.

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2020_02_NARFE_Apr_HHoriz.indd 1

2/12/20 9:51 AM W W W. N A R F E . O R G 49

|

2019-20

G FUND

F FUND

C FUND

S FUND

I FUND

FEBRUARY

0.13%

1.82%

-8.24%

-8.01%

-7.74%

JANUARY

0.17%

1.91%

-0.04%

-0.62%

-2.73%

DECEMBER

0.16%

-0.08%

3.01%

2.15%

3.24%

YTD

0.30%

3.77%

-8.28%

-8.58%

-10.25%

1 YEAR

2.10%

11.66%

8.16%

-0.17%

0.55%

3 YEAR*

2.46%

5.12%

9.84%

6.24%

4.57%

5 YEAR*

2.27%

3.77%

9.24%

6.37%

2.48%

10 YEAR*

2.20%

4.18%

12.68%

11.81%

5.26%

2019-20

*ANNUALIZED

L INCOME

L 2020

L 2030

L 2040

L 2050

FEBRUARY

-1.52%

-1.76%

-4.65%

-5.58%

-6.39%

JANUARY

0.01%

-0.02%

-0.45%

-0.59%

-0.71%

DECEMBER

0.74%

0.86%

1.83%

2.15%

2.43%

-1.51%

-1.77%

-5.08%

-6.14%

-7.06%

1 YEAR

3.24%

3.69%

4.31%

4.54%

4.65%

3 YEAR*

3.78%

4.72%

6.01%

6.55%

7.00%

5 YEAR*

3.41%

4.20%

5.32%

5.76%

6.13%

10 YEAR*

4.13%

6.56%

7.97%

8.80%

N/A

YTD

*ANNUALIZED

RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP (For additional monthly returns, go to www.tsp.gov.)

G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)

OPM RETIREMENT CLAIMS PROCESSING STATUS

Claims Received

Inventory Monthly FYTD (Steady State Average Processing Average Processing is 13,000) Time in Days Time in Days

2019

JANUARY 13,264 23,121 58 60 FEBRUARY 10,792 23,370 58 57 MARCH 10,048 20,201 50 55 APRIL 6,993 17,802 56 55 MAY 7,877 17,228 62 56 JUNE 8,201 18,501 60 56 JULY 8,000 18,413 55 56 AUGUST 8.878 17,576 50 56 SEPTEMBER 7,456 17,376 57 56 OCTOBER 7,044 17,882 59 59 NOVEMBER 7,822 18,390 62 61 DECEMBER 5,205 16,908 66 62 JANUARY 17,134 23,983 58 61 FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. l Source: OPM

’20

For the Record

CORONAVIRUS FEARS SHAKE MARKET

THRIFT SAVINGS PLAN FUND RETURNS

50

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2020

Although equity markets hit record highs midmonth, fear and uncertainty surrounding the macroeconomic impacts of the coronavirus outbreak dominated the final week. Major companies warned of supply chain disruptions and reductions in demand, prompting investors to flee to the safety of Treasury bonds. The C and S Funds posted large losses. The I Fund also fell significantly, thanks in part to a stronger U.S. dollar. Lower interest rates across the board led to a gain in the F Fund. All of the L Funds finished lower.—BY MICHAEL JERUE, FINANCIAL ANALYST, THRIFT SAVINGS PLAN

COUNTDOWN TO COLA

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 0.36 percent in January 2020. To calculate the 2021 costof-living adjustment (COLA), the 2020 third-quarter indices will be averaged and compared with the 2019 third-quarter average of 250.199. The percentage increase determines the COLA. January’s index, 250.199, is up 0.46 percent from the base.

Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W. January’s index is 0.36 percent higher than the December 2019 base index of 250.452 The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes.

MONTH

CPI-W

Monthly % Change

% Change from 250.199 239.668

OCTOBER 2019 2017

240.573 250.894

-0.15 0.26

0.28 0.38

NOVEMBER

250.644 240.666

-0.10 0.04

0.18 0.42

DECEMBER

250.452 240.526

-0.08 -0.06

0.10 0.36

JANUARY 2020 2018

251.361 241.919

0.36 0.58

0.46 0.94

FEBRUARY

242.988

0.44

1.39

MARCH

243.463

0.20

1.58

APRIL

244.607

0.47

2.06

MAY

245.770

0.48

2.55

JUNE

246.196

0.17

2.72

JULY

246.155

-0.02

2.71

AUGUST

246.336

0.07

2.78

SEPTEMBER

246.565

0.09

2.88

Donate to NARFE Programs Support Alzheimer’s Research NARFE members contributed for Alzheimer’s research: $14 Million Fund

$13,478,454.78

*Total as of January 31, 2020 100 percent of all contributed funds go to Alzheimer’s research.

If you have any questions, write to: NATIONAL COMMITTEE CHAIR Olivia Williams 22 Garden Springs Road Columbia, SC 29209

Enclosed is my NARFE-Alzheimer’s contribution: $______________ Every cent that is contributed is used for research.

q Mr. q Mrs. q Miss q Ms. Name:____________________________________________________ Address:__________________________________________________ City:______________________________________________________ State:_____________________________________________________ ZIP:______________________________________________________

EMAIL: oeashf3@gmail.com

Chapter Number:___________________________________________

WRITE YOUR CHAPTER NUMBER ON CHECK; MAKE IT PAYABLE TO:

Credit Card Information:

q MasterCard

q VISA

AND MAIL TO:

q Discover

q AMEX

Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633

Card Number:______________________________________________

NARFE-Alzheimer’s Research

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

Expiration Date:_____(mm)/____ (yy) 3-Digit Security Code:______ Signature:_______________________________ Date:___ /___ /____ Name: (please print)________________________________________

Give to the NARFE-FEEA Fund MAKE CHECK PAYABLE TO: NARFE-FEEA Fund PLEASE MAIL COUPON AND CHECK TO:

FEEA 1641 Prince St. Alexandria, VA 22314

q YES!

I would like to help with my contribution.

The NARFE-FEEA Fund supports NARFE members during disasters; provides scholarships to their children, grandchildren and greatgrandchildren; and funds other programs to support NARFE members at the direction of NARFE and FEEA. Enclosed is my NARFE-FEEA Fund Contribution: $______________

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

Name:____________________________________________________ Address:__________________________________________________ City:______________________________________________________ State:_____________________________________________________ ZIP:______________________________________________________ Email:____________________________________________________ To make credit card or e-check contributions, visit www.feea.org/ givenarfe.

NARFE News

WEBINARS ON DEMAND

PUBLIC SERVICE RECOGNITION WEEK

P

ublic Service Recognition Week is May 3-9, 2020, and among the festivities taking place in the nation’s capital is the Public Service 5K/1 Mile Run/Walk hosted by the Federal Employee Education and Assistance (FEEA) Fund at National Harbor on Sunday, May 3. The event brings together hundreds of federal employees, retirees, nonprofit professionals,

government contractors and local residents to raise funds that support federal public servants across the United States.

This year, NARFE is again sponsoring this familyfriendly event, and a team of runners and walkers from NARFE Headquarters will be participating and cheering on the federal community. If you’re a Fed

Did you know that NARFE’s popular webinars are always available online within 48 hours of running? Access the recorded programs at www.narfe.org/ member/federalbenefitsinstitute (login is required). You can also download transcripts of the Q&A sessions that follow most webinars. NARFE’s Federal Benefits Institute helps you take charge of your benefits!

outside of the Washington, DC area, you can register as a virtual walker/runner to get your t-shirt and take part in the festivities by walking or running in your own community.

Proceeds from the run/walk go to FEEA’s disaster relief, emergency hardship loans and scholarship programs. For more information about the walk, visit www.feea.org.

STAY CONNECTED WITH NARFE NEWSLINE

A

re you staying up-todate by having NARFE NewsLine arrive in your inbox each Tuesday? NARFE NewsLine is a weekly email newsletter with advocacy and

federal benefits updates, news about association activities and pertinent consumer interest pieces.

The newsletter goes out each Tuesday afternoon. If you currently are not receiving NARFE NewsLine,

send a note to communications@ narfe.org. We will coordinate with Member Records to ensure you receive it each week. And please forward it to colleagues, friends or family who might find it useful.

FEDERATION ELECTIONS 2020

52

FEDERATION

DATE(S)

Idaho

March-April

Ken Barr, idnarfe@q.com, 208-604-0291

Kansas

April 27-28

John Ourada, john.ourada@cox.net, 785-643-8506, www.narfe.org/site/ks

Michigan

May 28

Pennsylvania

May 1-28

Washington

Due by April 1

West Virginia

March 25-April 15

| A P R

2020

CONTACT

Sallye McGill, mcgill-s@sbcglobal.net, 248-561-4385 www.narfe.org/site/mi Voter Message Center, 814-470-4001 (follow prompts) www.narfe.org/site/pa Kathy Brooks, kmbrooks06@msn.com, 509-624-9465 www.narfewa.org Ruth Sosson, rasosson@comcast.net narfe.org/wv

NARFE MEMBER BENEFITS • Access the NARFE Federal Benefits Institute for powerful resources to help you fully understand and manage your benefits.

Active and Retired Federal Employees ...

Join NARFE Today!

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

Who Should Join NARFE?

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

• Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits.

• Get monthly issues of NARFE Magazine with news and insights for the federal community.

• Visit the Member Perks page for a full listing of the many time-, money- and hassle-saving benefits available only to NARFE members.

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

1Q6

NARFE MEMBERSHIP APPLICATION YES. I want to join NARFE for the low annual dues of $40.

q

q Mr. q Mrs. q Miss q Ms.

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

______________________________________________

Full Name

______________________________________________

Street Address Apt./Unit

______________________________________________

City

State

ZIP

______________________________________________

Phone

q Discover

q AMEX

___________________________________________ Card No. Expiration Date _____ /________ mm

______________________________________________

q VISA

yyyy

___________________________________________ Name on Card ___________________________________________ Signature ___________________________________________ Date

TOTAL DUES

______________________________________________

$40 Annual Dues X ___________ = ___________ Per Person # Enrolling Total Dues

I am a (check all that apply)

Dues payments are not deductible as charitable contributions for federal income tax purposes.

Email

q Active Federal Employee q Annuitant

q Active Federal Employee Spouse

q Annuitant Spouse

q Survivor Annuitant

q Please enroll my spouse _________________________________________

Spouse’s Full Name

LOOKING TO MEET OTHERS in the federal community and participate in NARFE at a local level? Call 800-456-8410 to learn about a NARFE chapter in your area.

_________________________________________

Would you like to receive a FREE one-year chapter membership? Choose one: q Chapter closest to home OR q Chapter #____________

THREE EASY WAYS TO JOIN

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

Spouse’s Email

1. Complete this application and mail with your payment to NARFE Member Services / 606 N Washington St / Alexandria, VA 22314-1914.

2. Join online at www.NARFE.org.

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

___________________________________________ Recruiter’s Name ___________________________________________ Recruiter’s Membership ID NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties.

(08/19)

Member Perks Perks Member

SAVE MONEY WITH NARFE PERKS NARFE appreciates your service, and so do businesses across the country.

Whether you are planning your next vacation or planning for retirement, members can save money on everyday purchases, thanks to our Affinity Partners. It’s just one more way we’re able to say “thank you” for being a NARFE member.

R

ShopNARFE

PUT YOUR NARFE MEMBERSHIP TO WORK Money-saving discounts that benefit you.

For a complete list of Member Perks, visit www.NARFE.org/memberperks.

54

| A P R

2020

INSURANCE: NARFE Insurance Services 1-800-233-5764 www.narfeinsurance.com

Plans administered by Mercer Health offering life, short term recovery, pet, travel, vision and hospital insurance policies.

Nationwide

1-855-550-9216

Discover how Nationwide’s suite of insurance solutions can help protect your financial future.

TRAVEL: Choice Hotels International 1-800-258-2847 www.choicehotels.com

Receive 20% off of your next stay when you use the special rate id 00801967.

Alamo 1-800-462-5266

www.alamo.com

Drive Happy with Alamo, where NARFE members receive year-round discounts using contract id 262544.

Avis 1-800-633-3469 www.avis.com

Avis has 5,500 locations worldwide.

Get discounted rate using the AWD number A701900.

MemberDeals

www.memberdeals.com/ narfe/?login=1

Exclusive discounts on nationwide attractions and entertainment.

WELLNESS: Brookdale Senior Living 877-713-2762 www.brookdale.com/narfe

Discounts on memory care, independent and assisted living communities, and more throughout the U.S. Offer good on new move-ins only.

HearUSA

1-855-845-2706 www.hearusa.co/narfe

The Nation’s Most Trusted Name in Hearing Care. Choose from 250+ models from 11 manufacturers, including Bluetooth, Wireless, Nearly Invisible and more!

PERSONAL SERVICES: Allied Van Lines – Coleman Worldwide 800-239-4099, ext. 99445 nicole.wood@colemanallied.com Discounted moving services across the United States.

Office Depot/Office Max

1-855-337-6811, ext. 2897 www.officediscounts.org/narfe

Save up to 80% on more than 93,000 products. Shop online or in any Office Depot or Office Max Store.

Verizon Fios

Verizon Fios offers NARFE members that are new customers to Verizon Fios a discount on the double and triple play packages IF the new account is opened online using the link found at www.narfe.org/memberperks.

W W W. N A R F E . O R G

|

55

The Way We Worked

CONDUCTING THE DECENNIAL CENSUS Every 10 years, the U.S. Census Bureau counts the nation’s population to determine representation in Congress and help inform how federal dollars will be distributed. In order to ensure everyone is included, the Census Bureau hires temporary workers to assist with the count. This photo shows one of the approximately 120,000 enumerators that were hired to assist with the 1940 Census. For the 2020 census, the Census Bureau is hiring hundreds of thousands of people across the country for temporary positions, including enumerators, office staff and recruiting assistants.

PHOTO from the Records of the Bureau of the Census, National Archives, courtesy of National Archives History Office , in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. To join, visit www.shfg.org.

56

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2020

DID YOU KNOW? The first U. S. census was conducted in 1790, led by Secretary of State Thomas Jefferson during George Washington’s presidency. The questions, created by a special committee established by the First Federal Congress, focused on gender, name of the head of household, relationship to the head of household, number of slaves, if applicable, and race.

Congress selected marshals of the U.S. judicial districts to collect the 1790 census data.

Visit www.census.gov

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