July 2017 NARFE magazine

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BLAST OFF TO FEDERAL RETIREMENT

P.43

THE FEDERAL FAMILY BY THE NUMBERS

COVER STORY

BARBARA SIDO Leading Forward

P.22 Volume 93 • Number 7

Volume 93 • Number 7

If you are a federal employee or retiree with Blue Cross Blue Shield Service Benefit Plan insurance coverage you may be eligible for:

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Beltone is an independent company providing discounts on hearing aids.

Call Beltone at 1-866-376-1445 to schedule your complimentary hearing screening today! *The insured may need to submit for reimbursement. State and/or local taxes may apply. Prices and products subject to *The insured may need to submit for reimbursement. State and/or local taxes may apply. Prices and products subject to change. Blue Cross and Blue Shield Service Benefit Plan will pay a hearing aid benefit up to $2,500 every 3 calendar years for change. Blue Cross and Blue Shield Service Benefi t Plan will pay a hearing aid benefi t up to $2,500 every 3 calendar years adults age 22 and over, and up to a $2,500 total per calendar year for members up to age 22. Do not rely on this communication for adults age 22 and over, and up to a $2,500 total per calendar year for members up to age 22. Do not rely on this piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in your communication piece alone for complete benefi t information. All benefits are subject to the definitions, limitations, and Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase exclusions in your Service Benefi t Plan brochure. The Blue365® Discount Program offers access to savings on items that you directly from independent vendors, which may be different from items covered under your Service Benefit Plan or any other may purchase directly from independent vendors, which may be different from items covered under your Service Benefi t Plan applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must Service Benefit Plan benefits first. To find out what is covered under your policy, contact the Service Benefit Plan. The products exhaust your Service Benefi t Plan benefi ts first. To find out what is covered under your policy, contact the Service Benefi t and services described herein are neither offered not guaranteed under any local Blue company’s contract with the Medicare Plan. The products and services described herein are neither offered not guaranteed under any local Blue company’s contract program. In addition, these items are not subject to the Medicare appeals process. Any disputes regarding these products with the Medicare program. In addition, these items are not subject to the Medicare appeals process. Any disputes regarding and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross and Blue Shield Association these products and services are not subject to the Service Benefi t Plan’s Disputed Claims process. Blue Cross and Blue (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, BCBSA, nor any local Blue company Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefi t Plan, BCBSA, nor any recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the local Blue company recommends, endorses, warrants or guarantees any specifi c Blue365 vendor or item. The Service Benefi right to change, modify, or terminate any item and vendors made available through Blue365, at any time. Blue Cross and Blue t Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time.

Shield Association is an association of independent, locally operated Blue Cross and Blue Shield Companies. State and local Blue Cross Shield Available Association is an association of until independent, taxes and/orand feesBlue may apply. at participating locations 12/31/17. locally operated Blue Cross and Blue Shield

Companies. State and local taxes and/or fees may apply. Available at participating locations until 12/31/17.

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WASHINGTON WATCH

6

Reorganization Plan Released

7

Fiduciary Rule Delayed

8

Action Center Makes it Easy to Track Bills

9

Hearing Addresses Federal Compensation

10

NARFE Bill Tracker

11

NARFE-PAC: Meeting Our Goals

COLUMNS

22

4

From the President

40 Managing Money

COVER STORY MEET EXECUTIVE DIRECTOR BARBARA SIDO. NARFE marked a new milestone in our organizational history when Barbara Sido took the helm to lead the association forward.

42 The Informed Citizen DEPARTMENTS

14 Questions & Answers 44 For the Record:

TSP Returns, Retirement Claims Status, Countdown to COLA

28

BLAST OFF TO FEDERAL RETIREMENT. Use this countdown checklist to help you take flight to your envisioned retirement.

46 NARFE News 52 The Way We Worked SPECIAL SECTIONS

43 The Federal Family

On the Web VISIT US ONLINE AT:

tration by Bill Pragluski, Critical Stages, LLC

www.narfe.org

LIKE US ON FACEBOOK:

NARFE National Headquarters FOLLOW US ON TWITTER:

@narfehq

ON THE COVER

Photo by John Harrington Design by Bill Pragluski, Critical Stages, LLC

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

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JUL 2017 | Volume 93 | Number 7

EDITOR Susan Boswell EDITORIAL ADMINISTRATOR Toni Vallario GRAPHIC DESIGN Charlene Gridley EDITORIAL BOARD Richard G. Thissen, Jon Dowie Barbara Sido EDITORIAL OFFICE: narfe magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Email: communications@narfe.org ADVERTISING SALES: Warren Berger Media People Inc. 122 East 42nd St., Suite 1622 New York, NY 10168 Phone: 212-779-7172, ext. 223 Email: wberger@mediapeople.com

NARFE FOR THE VISUALLY IMPAIRED ON THE TELEPHONE: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-5047300 or go to www.nfbnewsline.org.

ON DIGITAL AUDIO: Issues of narfe magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider.

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

National Active and Retired Federal Employees Association NATIONAL OFFICERS RICHARD G. THISSEN, President; natpres@narfe.org JON DOWIE, Secretary/Treasurer; natsectreas@narfe.org EXECUTIVE DIRECTOR BARBARA SIDO, bsido@narfe.org

REGIONAL VICE PRESIDENTS

REGION I James P. Crawford (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) TEL: 603-630-5191 EMAIL: crawfordjim62@gmail.com REGION II Evelyn Kirby (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) TEL: 410-604-1141 EMAIL: ekirby@atlanticbb.net REGION III Clarence Robinson (Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 EMAIL: crobin8145@att.net

REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: pappysdad@cobridge.tv REGION VII Rodney L. Adelman (Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: narfe7vp@cox.net REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) TEL: 707-644-7565 EMAIL: HLZajac125@gmail.com

REGION IV Edward J. Konys (Illinois, Indiana, Michigan, Ohio and Wisconsin) TEL: 937-470-0566 EMAIL: region4vp@gmail.com

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

REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) TEL: 620-241-1131, CELL: 620-504-2202 EMAIL: ek617@att.net

REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) TEL: 703-830-6590, CELL: 703-201-6304 EMAIL: wshack1951@aol.com

HERE’S HOW TO CONTACT US…

TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER:

CALL (TOLL-FREE) 800-627-3394 OR GO TO www.narfe.org TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:

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

TO REACH A FEDERAL BENEFITS SPECIALIST:

EMAIL fedbenefits@narfe.org NARFE HEADQUARTERS

606 N. Washington St. Alexandria, VA 22314 703-838-7760

www.narfe.org

narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $40. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2017, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in narfe, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President

A NEW MILESTONE FOR NARFE

B

arbara Sido, our executive director, arrived at Headquarters on May 15, marking another defining moment

for NARFE. Barb brings more than 20 years of association management experience and will be a catalyst for advancing the professional management of NARFE association operations and staff.

The impetus for hiring an executive director is to bring association management expertise and continuity of daily business operations for headquarters staff. This continuity is a necessity due to the fact that the organization’s entire leadership can change every two years, and the fast-moving pace of today’s business environment requires leaders that are ready, proactive and effective.

Barb has special expertise in marketing, fundraising and advocacy to provide oversight and leadership to our highly trained

staff. Her connections to and familiarity with the latest innovations and best practices within the nonprofit community also offer an exciting opportunity to enhance the value of NARFE to members. She holds the Certified Association Executive (CAE) credential, demonstrating an extensive knowledge base of association management practices in today’s challenging environment.

All members of the staff will report either directly or indirectly to Barb. In coordination with the president and the National Executive Board (NEB), Barb will provide overall policy and strategic direction of the association.

After a thorough nationwide search, Barb stood out as the clear choice to lead the organization. Of the 90 applicants for the executive director position, our search firm identified 46 preliminary candidates. The NEB search committee then chose seven candidates for an initial interview and invited four back for a second interview. The entire NEB interviewed the top two candidates.

Please join me in welcoming Barb to NARFE, and learn more about her background and vision for the organization on page 22.

NARFE Annual Meeting Reminder NARFE will convene its 2017 Annual Meeting in conjunction with the joint National Executive Board and Federation Presidents’ meeting.

The event will be held at the Hyatt Regency Jacksonville Riverfront in Florida on July 11-13. Members are welcome to attend.

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RICHARD G. THISSEN NARFE NATIONAL PRESIDENT natpres@narfe.org

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Washington Watch

REORGANIZATION PLAN RELEASED; FEDERAL HIRING FREEZE OVER

I

n April, the Office of Management and Budget (OMB) issued a government reform plan titled “Comprehensive Plan for Reforming the Federal Government and Reducing the

Federal Civilian Workforce.” This plan was issued pursuant to the president’s executive order directing OMB to submit a comprehensive proposal to reorganize executive branch departments and agencies.

The presidential memorandum also imposed a hiring freeze until OMB produced a long-term plan to reduce the size of the federal workforce. With the issuance of this long-term plan, the federal hiring freeze is officially over.

OMB’s proposal directs agencies to draft an “agency reform plan” by June 30. The memo asks agencies to: eliminate, restructure and merge activities; improve organizational efficiency, performance and accountability; and reduce costs, including workforce reductions.

Notably, the memo does not address federal employee pay and benefits, including retirement and health benefits. The govern6

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mentwide reform plan will be factored into the president’s fiscal year 2019 budget, according to OMB’s memo, and will likely be used for budget reconciliation in FY 2019.

Congress would need to approve aspects of the reform plan, including the restructuring or merging of agencies and ACTION ALERT!

the elimination of programs.

Other aspects of the plan, such as those addressing efficiency and workforce management, may not require congressional approval but must operate within existing personnel law.

Agencies also may have significant flexibility regarding workforce reductions if they do not conflict with congressional appropriations.

OMB is seeking public input on the reforms, which can be submitted on the White House website. While OMB is soliciting ideas for how to fix what is wrong with government, NARFE strongly encourages its members to tell OMB what is right with government —

J U LY

Ask your senators to cosponsor the TSP Modernization Act of 2017! This bill would provide flexible withdrawal options for Thrift Savings Plan (TSP) participants and grant federal workers and retirees greater control over their retirement savings. Use NARFE’s Legislative Action Center at www.narfe.org/legislation today to send a letter to urge your senators to cosponsor S. 873!

in other words, what ought to be maintained and preserved. If you have constructive ideas for improving government based on your personal experience, please provide those as well.

—JESSICA KLEMENT, LEGISLATIVE DIRECTOR

MYTH vs.

REALITY MYTH: Reducing the federal workforce through attrition will put an end to government growth, save money and boost government efficiency.

REALITY: Cutting the federal workforce by an arbitrary percentage doesn’t take into account existing projects and workloads.

This can create inefficiency and delay crucial projects.

There are fewer federal employees working today than in 1967, despite claims to the contrary. Since that time, the U.S. population has grown 60 percent, and the private-sector workforce has increased by 135 percent. Refusing to fill open positions would inevitably lead to the hiring of private contractors, a costly action that would mitigate any potential savings and reduce accountability, according to the Government Accountability Office. Such a proposal makes for a good sound bite but ultimately will cost taxpayers more.

dol delays applicability date for fiduciary rule by 60 days

T

he Department of Labor (DOL) published a final rule to extend, by 60 days, the applicability date for defining who is a “fiduciary” when providing retirement investment advice. The delay rescheduled full implementation of the “conflict of interest” or “fiduciary” rule to June 9.

NARFE supported the issuance of the fiduciary rule last year, and opposes any delay of its applicability date. The rule would require financial advisers to provide retirement investment advice that is in the best interest of their clients, rather than their own. Under previous law, advisers legally could recommend investments that subject their clients to excessive costs, unnecessary risk and poor performance in pursuit of higher commissions.

On February 3, President Trump issued a memorandum that directed the Labor Department to determine whether the rule should be rescinded or revised. The 60-day delay was issued in response to that memo.

DOL does not plan to issue any additional delays, however, nor does it expect to complete its review of the fiduciary rule during the 60-day extension.

The full review is scheduled to

take place before the second phase of the rule is set to begin in January 2018.

This means that significant portions of the rule will go into effect June 9. NARFE is pleased that financial advisers will be subject to the new best-interest standard when issuing advice regarding rollovers — for instance, when an individual transfers money from a 401(k) to an individual retirement account (IRA).

NARFE has been particularly concerned that previous standards did not adequately protect federal employees and retirees invested in low-fee Thrift Savings Plan (TSP) funds from conflicted advice to move their money out of those funds.

With the new standard in place, advisers will be required to give impartial advice that adequately weighs the costs and benefits of withdrawing investments from the TSP. Hundreds of NARFE members wrote to DOL opposing the delay during a public comment period.

Results showed that 92 percent of the more than 193,000 comments were supportive of the rule. This strong public response should be considered a near-term victory as it may have prevented a longer delay or a substantial revision of the rule.

—JOHN HATTON, DEPUTY LEGISLATIVE DIRECTOR W W W. N A R F E . O R G

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Washington Watch

LEGISLATIVE ACTION CENTER PUTS BILL TRACKING AT YOUR FINGERTIPS

E

very issue of narfe magazine provides details about movement on current legislation or issues NARFE is tracking. However, you may be wondering where to look for updates in between magazine issues. The new NARFE Legislative Action Center is your hub for contacting your members of Congress as well as learning about the bills NARFE is tracking.

The Action Center makes it easy to be actively engaged in protecting your earned pay and benefits.

Preparation is crucial before interacting with legislators or their staff. To capitalize on these opportunities, it’s wise to research your legislators and their positions as well as how congressional bills will affect you and the federal community. Visit the Action Center today at www.narfe.org/legislation for Legislative Resources • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE Legislative Department staff, distributed via email and available by phone (toll-free) at 877-217-8234 and online at www.narfe.org.

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

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NARFE makes every effort to make taking action as easy as possible for you.

We welcome your feedback on the new system. the tools to strengthen your “ask” to your members of Congress.

To review current legislation by category, visit the Action Center homepage and click the link titled “View key legislation” on the landing page (www.narfe.org/legislation/votervoice.cfm). Bills that NARFE is tracking are listed by category. House bills begin with an “H.R.”; Senate bills begin with an “S.” NARFE’s stance on particular legislation is indicated with either a thumbs up symbol (NARFE supports) or thumbs down symbol (NARFE opposes).

To find out more about specific legislation, click on the bill name and you’ll be directed to a page that gives an explanation of the bill, a list of cosponsors, actions that have been taken, the committee(s) in which the bill resides currently and a link for more information via the website Congress.gov. Having all of this information accessible in one place makes it easy to do your homework before customizing an action letter or addressing pending legislation with your member

of Congress or their staff at a meeting or event.

What if you can’t find a piece of legislation that was introduced in the past? First, try different search words. Or, it’s possible that the legislation may not yet have been introduced in the 115th Congress, which convened in January.

The Action Center is your onestop shop to take action and learn more about NARFE’s legislative priorities. The new system makes it easy to take action, research your legislators and report back to the Legislative Department about your meetings and events!

NARFE makes every effort to make taking action as easy as possible for you. We welcome your feedback on the new system and appreciate your time and effort in helping us defend your earned pay and benefits.

Please contact leg@narfe.org with any questions about how to navigate the Action Center or to learn more about the legislation NARFE is tracking.

—MOLLY CHECKSFIELD, GRASSROOTS PROGRAM MANAGER

NARFE CALLS FOR COMPETITIVE COMPENSATION AT COMMITTEE HEARING

T

he House Committee on Oversight and Government Reform held a hearing in May on federal employee compensation levels. Specifically, the hearing addressed a recent Congressional Budget Office (CBO) report, which compared federal compensation to that of the private sector.

Members of the committee also debated areas to improve and modernize the federal employee compensation system.

Witnesses from the CBO and the U.S. Government Accountability Office discussed the findings of the CBO report. The

report concluded that highly educated federal government workers were paid less, on average, in total compensation than private-sector employees with similar characteristics. For the least-educated employees, the report found the federal government paid more than the private sector, primarily as a result of greater benefits. CBO concluded total compensation was 17 percent greater for federal employees than for their private-sector counterparts.

NARFE submitted written testimony to the committee, expressing support for competitive

compensation and urging the committee to take a measured and thoughtful approach to any changes to federal pay and benefits.

NARFE’s testimony also identified flaws and limitations in the CBO report, which may have led to an incorrect conclusion. Interestingly, the Federal Salary Council has reported that federal workers are paid, on average, approximately 34 percent less than their private-sector counterparts, based on data collected by the Bureau of Labor Statistics.

—ROSS APTER, LEGISLATIVE STAFF ASSISTANT

Order your copy of NARFE’s CONGRESSIONAL DIRECTORY for the 115th CONGRESS (2017-2018) today!

Clip and mail to: NARFE Congressional Directory / 606 N. Washington Street / Alexandria, VA 22314-1914 Name___________________________________________________________________ Address _________________________________________________________________

Only $20

City _________________________________________ State ______ ZIP ___________ Member ID# (as it appears on narfe magazine label) ________________________________________________________________________

o Check (payble to NARFE) or cash enclosed o Charge to my credit card o MasterCard

o VISA o Discover o AMEX

Card # __________________________________________________________________ Exp. Date

_______ (mm)

/ _______ (yy)

Name on card (print) ______________________________________________________ Signature ____________________________________________ Date _____________

Quantity ________________ $20 each (includes shipping and handling) VA sales tax _____________ VA residents add 6% tax ($1.20 per book) Total cost _______________

Please allow 2-3 weeks for delivery.

Call NARFE’s Legislative Department at 703-838-7760 to order by phone.

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

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Washington Watch

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

BILL NUMBER / NAME / SPONSOR H.R. 756: Postal Service Reform Act of 2017 / Rep. Jason Chaffetz, R-UT

LATEST ACTION(S)

Requires postal retirees to enroll in Medicare in order to continue receiving their current federal health insurance coverage. Enrollment would be automatic.

Referred to the House Committee on Oversight and Government Reform and two other committees

Expresses the sense of the House that the U.S. Postal Service should take all appropriate measures to ensure the continuation of six-day delivery.

Referred to the House Committee on Oversight and Government Reform

Expresses the sense of the House that the U.S. Postal Service should take all measures to restore service standards in effect on July 1, 2012.

Referred to the House Committee on Oversight and Government Reform

Referred to the House Committee on Oversight and Government Reform

Cosponsors: 178 (D), 53 (R)

Expresses the sense of the House that the U.S. Postal Service should take all measures to ensure the continuation of door-to-door delivery for all businesses and residential customers.

H.R. 757: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerald E. Connolly, D-VA

Provides for a 2 percent pay raise for federal employees and 1.2 percent increase in locality pay in 2018.

Referred to the House Committee on Oversight and Government Reform

Cosponsors: 7 (D), 6 (R)

H.Res. 15: As a resolution, it will not be sent to the president and, therefore, cannot become law/ Rep. Sam Graves, R-MO Cosponsors: 159 (D), 49 (R) POSTAL REFORM

WHAT BILL WOULD DO

H.Res. 31: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. Dave McKinley, R-WV

narfe, June 2017

Cosponsors: 143 (D), 38 (R) H.Res. 28: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. Susan Davis, D-CA

Cosponsors: 65 (D), 1 (R)

FEDERAL COMPENSATION

S. 255: The Federal Adjustment of Income Rates (FAIR) Act / Sen. Brian Schatz, D-HI

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 7 (D), 0 (R)

narfe, April 2017

H.R. 1594: Wage Grade Employee Parity Act / Rep. Matt Cartwright, D-PA Cosponsors: 2 (D), 1 (R)

TAXES

NARFE’s Position: 10

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Support

Oppose

Referred to the House Committee on Oversight and Government Reform narfe, June 2017

H.R. 396: Tax Accountability Act of 2017 / Rep. Jason Chaffetz, R-UT Cosponsors: 0

Gives the president the authority to provide wage grade, or hourly, employees a pay raise.

Mandates that no individual with an unpaid tax liability can be eligible for federal employment. Requires agencies to review employee’s tax liability.

No position

Referred to the House Committee on Oversight and Government Reform narfe, April 2017

(Continued on p. 12 )

NARFE-PAC:

MEETING OUR GOALS

NARFE-PAC, the political arm of NARFE, works to defend your earned pay and benefits by building strong relationships between NARFE and members of Congress. Help us reach these important goals by November 6, 2018! Contribute to NARFE-PAC!

Raise $1.5 million

$276,120

Disburse $1 million in political contributions

Grow monthly giving program (sustainer program) by 50%

Send NARFE members to 100 local fundraisers

$176,500

5%

17

Figures as of 4/30/2017

Contribute To NARFE-PAC I want to make a monthly sustainer credit card contribution:

q $25/month

OR

I want to make a one-time contribution: q $250 – Gold lapel pin and blanket q $100 – Silver lapel pin

q $10/month q Other: ______/month ($10 minimum) Sustainers receive a Sustainer lapel pin and cozy fleece NARFE blanket.

q $50 – Bronze lapel pin q $25 – Basic lapel pin q Other: _________

q Please do not send any gifts for my contribution (This saves NARFE-PAC money!)

NARFE Member #: _________________________________________ Name: __________________________________________________ Address: ________________________________________________ City: _________________________________________________ State: ___________

ZIP: _______________

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

q Charge my credit card (required for monthly contribution) q MasterCard

q VISA

q Discover

q AMEX

Card #: ________________________________________________ Exp. Date: _____ /_________ mm

yyyy

Name on Card: _________________________________________ Signature: _____________________________________________ Date: _________________________

Or mail check payable to NARFE-PAC to: NARFE Attn. Budget & Finance 606 North Washington St. | Alexandria, VA 22314 W W W. N A R F E . O R G

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Washington Watch

narfe bill tracker (Continued from p. 10) ISSUE

CAMPAIGN FINANCE

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

H.R. 20: The Government By the People Act of 2017 / Rep. John Sarbanes, D-MD

Reforms campaign finance laws to put small donors on par with wealthier donors. Provides a tax credit for contributions and government matching contributions.

Referred to three House committees

Requires Social Security and many federal retirement programs to use the Consumer Price Index for the Elderly (CPI-E) to calculate cost-ofliving adjustments in retirement benefits.

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

Updates age-based and postseparation withdrawal options, creates new withdrawal intervals, grants flexibility in payment amounts and eliminates the Thrift Savings Plan (TSP) withdrawal election deadline.

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 155 (D), 1 (R) H.R. 1251: CPI-E Act of 2017 / Rep. John Garamendi, D-CA COLA

Cosponsors: 34 (D), 1 (R)

S. 873: TSP Modernization Act of 2017 / Sen. Rob Portman, R-OH FEDERAL RETIREMENT

HEALTH CARE

DC STATEHOOD

Cosponsors: 1 (D), 0 (R)

LATEST ACTION(S)

narfe, May 2017

narfe, June 2017

Repeals the Affordable Care Referred to nine H.R. 1408: Access to Insurance for All Americans Act / Act and establishes a national House committees Rep. Darrell E. Issa, R-CA health program administered by the Office of Personnel ManageCosponsors: 0 ment to offer Federal Employees Health Benefits Program plans to individuals who are not federal employees or retirees.

The bill would place non-federal participants into the federal employee risk pool.

H.R. 1291: Washington, DC Admission Act / Del. Eleanor Holmes Norton, D-DC Cosponsors: 123 (D) H.R. 1205: Social Security Fairness Act of 2017 / Rep. Rodney Davis, R-IL

GPO/WEP

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

Cosponsors: 98 (D), 31 (R)

Sets forth procedures that would allow the District of Columbia to become a state known as the State of Washington, DC.

Referred to the House Committee on Oversight and Government Reform, and Committee on Rules

Repeals both the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).

Referred to the House Committee on Ways and Means

S. 915: Social Security Fairness Act of 2017 / Sen. Sherrod Brown, D-OH

narfe, May 2017 Referred to the Senate Finance Committee

Cosponsors: 3 (D), 3 (R), 1 (I)

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NARFE’s Position:

Support

Oppose

No position

Savings from Sea to Shining Sea. Your National Active and Retired Federal Employees membership could get you a special discount on auto insurance.

Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. Discount amount varies in some states. One group discount applicable per policy. Coverage is individual. In New York a premium reduction may be available. GEICO is a registered service mark of Government Employees Insurance Company, Washington, D.C. 20076; a Berkshire Hathaway Inc. subsidiary. Š 2017

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Questions & Answers

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

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

EMPLOYEES DETERMINING ANNUITY FOR CSRS OFFSET EMPLOYEES WITH A BREAK IN SERVICE

Q

I am a Civil Service Retirement System (CSRS) Offset employee and am trying to figure out what this means for my benefits.

I have 11 years of employment covered by Social Security and 11 years in offset. How do I determine my annuity?

A

On January 1, 1987, the new Federal Employees Retirement System (FERS) started. Most employees were covered by either CSRS or FERS. However, the legislation that created FERS also created the CSRS Offset retirement plan.

This plan applies to employees who had a break in federal service that exceeded one year and the employee returned to federal service after 1983 and had five or more years of creditable service as of January 1, 1987. For example, if you left federal service on May 15, 1992, with 18 years of CSRS covered service, and came back 14

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to work for the government on November 1, 1993, you would be placed in CSRS Offset retirement coverage. From that point until you retire, you pay both Social Security and CSRS contributions.

When you retire, your annuity will be computed under CSRS rules.

However, at age 62 your CSRS annuity will be reduced, or offset, by the value of the Social Security benefit you earned during your CSRS Offset years. The amount of the offset is the lesser of: 1) the amount of Social Security benefit attributable to the years under CSRS Offset; or 2) the amount obtained by multiplying

this fraction: (total years of Social Security divided by 40) multiplied by the amount of Social Security benefit to which you are entitled at retirement. You should make an appointment to talk with your agency benefits counselor to see exactly how your retirement will be calculated.

SURVIVOR ANNUITY ELECTION FORM

Q A

Can you tell me what form is used to select the survivor annuity while you’re still an active employee?

As an employee, there is no election form for providing a survivor annuity to a spouse in the event of your death in service. If you are covered by the Civil Service Retirement System (CSRS) and have completed at least 18 months of credit-

able service, your current spouse, if eligible, will receive a monthly survivor benefit. For your current spouse to be eligible, he or she must have been married to you for at least nine months. If your death occurred prior to nine months of marriage, a monthly survivor annuity may still be payable if your death was accidental, or there is a child born of the marriage.

If you are covered by the Federal Employees Retirement System (FERS) and have 18 months of creditable service, your spouse may be eligible for the Basic Employee Death Benefit. This benefit is an amount equal to 50 percent of the employee’s final annual salary (or average salary, if greater), plus $32,423.56 for deaths after December 1, 2016. If you are covered by FERS and have at least 10 years of creditable service, your surviving spouse may also be eligible for a survivor benefit.

The election forms that are available to employees are “Designation of Beneficiary” forms that specify who, in the event of your death, you want to receive either leftover retirement money or proceeds from your Federal Employees’ Group Life Insurance (FEGLI). For payment of any lump sum retirement money if you are under FERS, use SF 3102. If you are under CSRS, use SF 2808. For FEGLI, use SF 2823.

WEP AND EMPLOYMENT UNDER CSRS AND FERS

Q

I am within five or six years of retirement. I was in the Civil Service Retire-

ment System (CSRS) for 15 years and then left government service.

Several years later, I returned to government service and switched to the Federal Employees Retirement System (FERS), and now have almost 17 additional years of service under FERS, for a total of 32 years of federal government service. Will my Social Security benefits be subject to the Windfall Elimination Provision (WEP), as my annuity will include CSRS employment?

A

The Social Security Administration states in its publication the WEP reduction does not apply if you have 30 or more years of substantial earnings under Social Security, and lower offset amounts between 20-30 years of Social Security earnings.

From what you have said, it appears that your Social Security benefit will be reduced as a result of the WEP.

RETIREES DOES ANNUITY PROVIDE A SURVIVOR BENEFIT?

Q

My spouse predeceased me and I am completing forms to change my beneficiary. Is there a refund of the amount my annuity was reduced to provide a survivor benefit?

A

Unfortunately, there is no refund of the amount your annuity was reduced to provide a survivor

benefit. However, the Office of Personnel Management (OPM) will adjust your annuity to an unreduced amount without a survivor benefit upon submission of your spouse’s death certificate, and the annuity adjustment will be retroactive to your spouse’s date of death.

You will receive a refund of the difference in annuity from that date.

MEDICARE TAX WITHHELD FOR CSRS EMPLOYEES

Q

My husband and I both retired under the Civil Service Retirement System (CSRS) in December 1986. Prior to our retirement, a paycheck deduction was made for Medicare, and we were told that we would be automatically enrolled in Medicare at age 65. My husband retired from the military and we were already covered by their health insurance. Did this deduction for CSRS employees continue after 1986?

A

If you were employed in federal service on or after January 1, 1983, under P.L. 97-248, Medicare taxes were withheld, and thus at age 65 you were automatically eligible for Medicare Part A coverage, premium-free. The same taxes for Medicare continue for all federal employees.

Enrollment in Part B is voluntary unless you are enrolled in the military TRICARE For Life health program, which requires your enrollment in both Medicare Part A and Part B for continued coverage.

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

|

15

Questions & Answers

NO MEDICARE PENALTY FOR OLDER WORKERS

Q

We are told by the Office of Personnel Management (OPM) that because we are covered under an employer health plan after retirement, OPM will provide a document which states that we have been continuously covered under an employer health plan, so the Medicare penalty will not apply, even if Medicare Part B is elected years later. Have you heard of this?

A

The Medicare law states that if an individual is working at age 65 and covered under an employer’s

group health plan (either their own or a spouse’s), the individual can wait to sign up for Part B without penalty until he or she retires and is no longer under the employer’s group health plan. Once retired, an individual older than age 65 has a chance to sign up for Part B during a Special Enrollment period, which is an eight-month period that begins the month after the employment ends.

If the retired individual does not enroll during the Special Enrollment period, but enrolls at a later date, he or she may be subject to the late enrollment penalty.

APPEALING A WORKERS’ COMPENSATION DENIAL

Q A

I’m ready to submit a claim to the Office of Workers’ Compensation Programs (OWCP) for an on-the-job injury. If they deny me, can I appeal?

Yes, OWCP has three types of appeals you can use but they all have a time limit. If this is your initial appeal, you can request a hearing within 30 days of the date of decision. You can appear in person at the hearing or request to participate by telephone. You can make a written request for reconsideration within one year of the last merit decision to review legal points or introduce new evidence, such as

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Questions & Answers

NARFE at Your Service a witness’ statement or medical report. You also can request appeal to the Employee Compensation Appeals Board within 180 days of the OWCP denial.

CORRECTION

Our answer to a question in the May issue of narfe magazine (p.

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The “T” does not indicate whether or not you are eligible for Social Security benefits, only that you are not drawing them. Our apology for the error.

To obtain an answer to a federal benefits question, NARFE members should call 703-838-7760 and ask for the Federal Benefits Service Department; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

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Cover Story

Barb

ido S Leading Forward BARBARA SIDO TOOK THE HELM OF NARFE AS EXECUTIVE DIRECTOR on May 15, marking the transition of organization leadership to an association management professional. The milestone was the culmination of an intensive, multiphase nationwide executive search process over a six-month period conducted by the National Executive Board search committee in conjunction with a highly respected search firm.

With roots in public service, Sido brings a wealth of more than 20 years of experience in all aspects of association management. She has served in executive positions with the American Institute of Architects, National Restaurant Association Education Foundation, School Nutrition Association and Business and Professional Women/USA. Sido also has imparted her wisdom to other nonprofit executives, mentoring and guiding the growth of leaders through her consulting firm, which provided executive coaching.

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Sido earned an executive master’s in leadership from the McDonough School of Business at Georgetown University and is a candidate for a doctor of education degree from George Washington University. She is a Certified Association Executive (CAE), which is earned through extensive experience, professional development and assessment.

Sido is known as an innovator and energizer, whose experience spans the spectrum of association best practices. Throughout her career, she has used her diverse experience to

strengthen organizations. Sido has served as a public spokesperson to the media, government officials and corporate partners, and has earned a reputation as a leader in fundraising and revenue development. She has reimagined association products and programs to leverage the value proposition of associations and develop new member services. Sido also has led organizations through membership growth and transformation. In this interview, Sido shares her background and leadership vision for NARFE as she guides the organization into a new era.

where the members are fundamentally misunderstood and largely unappreciated by the general public. Part of my goal as Executive Director is to leverage NARFE resources to begin to change the misperception of the public and the perspective of policymakers who have been critical of civil service.

Q

Like many others, I came to Washington, DC, aspiring to participate in some way in the public sector. Even as I was working in politics, I began to realize that there was a whole universe of organizations that were working on a variety of issues. Each one was seeking, from its perspective, to do something good, and they were powerful. Falling somewhere between the government and K Street lobbyists, but with a nonprofit model, associations really can play an important role in shaping the public debate.

I wanted to be a part of that because I wanted to make a difference. I have worked for a wide variety of organizations, and what ties them all together is that they were representing members and pursuing missions that I thought were worthwhile.

As I entered the association management field, first as a deputy director of government affairs, I began to refine my skills to the point

A

What drew you to the Executive Director position at NARFE?

NARFE is a rare combination. It is a strong, vital organization pursuing an important mission as the only association dedicated solely to safeguarding and improving the benefits of federal employees, retirees and their families. At the same time, NARFE has made a strategic decision to build upon that foundation by innovating new and better ways to deliver value to members. I saw an opportunity to lead an organization where both my experience in all aspects of association management and my skills in organizational innovation and growth would be crucial to the future direction of the organization. In my professional and personal life, I am driven to make a difference, to have real impact. I believe I can and will do that as Executive Director of NARFE. It’s an exciting challenge.

Q

What attracted you to the field of association management? Which career achievements are you most proud of?

A

Q

How will your experience in civil service translate into your leadership at NARFE?

A

In my time as a federal employee, I learned firsthand that the U.S. government does not function without a skilled and dedicated workforce. I always admire people who strive to deliver excellence in the face of challenges, and the federal community certainly faces its share of those, whether it’s doing more with less or simply battling preconceived notions. I have worked in a variety of organizations Photos by John Harrington Photography

Barb Sido

Leading Forward where, 20 years later, I can point proudly to a strong track record of moving organizations forward. I am most proud of my ability to bring together all the players – members, leaders, strategic partners, staff and others – to come to consensus about what needs to be done, and then about the business of achieving it. In my interactions, I am open and engaged, and I think people respond to that.

Using this model, I have led efforts to fundamentally transform one organization’s value proposition and to grow another organization by 60 percent. This is not about me – it’s about relationships.

Q

What do you see as the biggest challenges and opportunities facing the federal community today?

A

The federal community is under a constant barrage of attacks on their earned pay and benefits. There also is a larger idea that I think we should consider: We need to take steps to understand and improve how key stakeholders – elected officials, the media, and the general public – view the federal workforce and NARFE. If we can change the perceptions of key stakeholders so they see civil service as the honorable career of millions of competent and committed public servants, I think some challenges in advocacy and marketing will be easier to address.

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President Richard G. Thissen, who is a former federal employee and registered lobbyist, will continue to be at the forefront of advocating for federal benefits legislation with Congress. I am looking forward to interacting with NARFE members and hearing the issues that are on their minds.

Q

How will your deep background in developing learning programs facilitate the launch of the inaugural 2018 NARFE National Conference?

A

The 2018 Conference is an exciting opportunity that I’m really eager to get to work on. One of the strongest ways NARFE delivers value to members is through the information and resources available to help the federal community navigate through almost any issue related to their annuity and benefits as well as to advocate for their rights under retirement, health and other employee and retiree benefit laws and regulations. I’ve managed the development of conferences from 50 to 20,000 people, and I know that faceto-face interaction is one of the best ways to share vital information and build skills among members. Whether it’s networking at the coffee break or a plenary session with a keynote speaker, people should leave the conference feeling more informed about the issues and engaged in advocating for federal benefits. We have some front-end research to do in developing the learning and business objectives of the conference, but enhancing the level of empowerment for members is a compelling opportunity.

Q

A

What is your leadership vision for the organization?

I look forward to leading the largest organization representing the interests of federal employees and retirees with a venerate history of nearly 100 years, and at this critical juncture, taking the organization

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Barb Sido

Leading Forward to the next level. On the one hand, I will be working to ensure that the business of NARFE is operating at peak performance to enhance efficiency and effectiveness. With NARFE running like a well-oiled machine, and with a demonstrable commitment to superior customer service, I can lead the team to look forward to innovation and growth in such areas as membership recruitment, web-based resources, branding, the conference and much more. Understanding best practices is good for operations, but it’s also critical to the development and implementation of strategy.

What needs to be done, and what’s the best way to do it? That’s the core question that will drive my leadership vision. Of course, I am keenly aware that leaders are just part of the team, and I am excited to work with a skilled, dedicated staff. My commitment is to work with each of them so they can understand how they fit into the overall strategy and then help them achieve excellence. A big part of my job is making sure they are successful in their jobs.

Q

A

Who has been your biggest inspiration?

I have been fortunate in my career to work closely with a number of senior association executives who allowed me to observe them, ask questions and take risks so I could grow professionally. Through these mentors, I learned 26

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how to be a top-tier association leader. I seek to always make them proud of me as I continue to learn and grow in my profession, and I am committed to mentoring other emerging professionals. I find a great deal of inspiration in watching the success of others, knowing that I played some small part in their achievements.

Q

Is there anything else you’d like to tell us about yourself that will help NARFE members know you better?

A

Though I have worked in the Washington, DC, area for many years, I think one of my defining characteristics is that I am a Midwesterner at heart. I have a strong work ethic and a clear commitment to doing the right thing. And I believe that it’s important to not take oneself too seriously. Outside of work, I am the proud aunt of nine who are growing into remarkable young men and women. I cherish being a role model for them. I have my own little pack of three dogs, who are horribly spoiled. Since the age of four, I have been a voracious reader, and I write poetry from time to time. I love to cook and bake, especially traditional family favorites that have been passed down through the generations.

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blast off to federal Retirement A Countdown CHECKLIST to Help You Take Flight

ONE COULD LOOK AT PREPARING FOR RETIREMENT FROM A FEDERAL AGENCY AS A LONG, TEDIOUS EXERCISE IN PAPERWORK. But perhaps a better — and certainly more interesting — way is to reimagine it as an exciting countdown to a takeoff that launches your post-retirement future. This article provides an overview of many of the key federal retirement planning steps and when they occur. For more details, see the Office of Personnel Management (OPM) resource guide in the sidebar on p. 38.

COMMENCE ‘PROJECT RETIREMENT’

You are still aboard your agency spaceship in deep space, but the end is within sight. It’s never too early to start imagining what your retirement world will look like. Is it full of expensive travel and dining or a more low-key affair? Will any obligations to dependents remain? Will you work and, if so, generate significant income?

And does the imagined world correspond to the likely reality? Realize, too, that many retirements will include several realities, or phases. These may include the early go-go years of travel and high costs, slow-go years when activity tapers off, and the final no-go phase when comfort and access to loved ones may be paramount, with markedly higher medical costs.

28

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Illustration by Bill Pragluski, Critical Stages, LLC

blast off to federal Retirement As a prelude, in most federal positions, there is no requirement to retire, assuming adequate job performance and no reductionin-force (RIF). The better question is, when will you have enough money and an adequate income flow to retire? You will want to attend a mid-career financial planning/retirement planning seminar and run the numbers to find out when retirement is feasible.

Importantly, you will need a budget for after retirement and to understand your goals for retirement.

You may decide to stay aboard the spaceship a while longer. Telework, phased retirement and part-time employment may be alternative options that ease the demands of employment while providing continued income and security.

You also may find that federal thrusters are insufficient to support the retirement payload and that only private-sector employment will provide the greater income you will require. In following this flight path, be aware of what you will give up: relative job security, the right to carry health benefits into retirement, an often (though certainly not always) more forgiving and pleasant federal work environment, and reduced years of service. The high-three earnings years may potentially be reduced, which would result in reduced federal annuity payments.

Even this far out from the target, it is time to become familiar with the basic equipment and how it will work together.

FIRST COME THE THRUSTERS

What will your retirement income streams be? Learn the three components of income for pure play Feds: 1) retirement annuity benefits for Federal Employees Retirement System (FERS) and Civil Service Retirement System (CSRS) plans; 2) Thrift Savings Plan benefits (for all FERS and many CSRS plan participants); and 3) Social Security benefits (for nearly all FERS and some CSRS participants).

THE ANNUITY THRUSTER: With assistance 30

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from your agency human resources office, prepare a rough estimate of your CSRS or FERS annuity. Become aware of the different forms of annuities that may be available to you; when you will be eligible to begin the annuities (most have age and federal service thresholds); the level of annuity it will provide; and its effects on other benefits.

FERS retirement options may include: 1) various options for an immediate annuity; 2) deferred retirement; 3) disability retirement; and 4) retirement with reduced age and service requirements pursuant to involuntary separation, such as a RIF. Some CSRS plan participants may fall under CSRS Offset, which provides Social Security benefits but a reduced CSRS annuity. There is also a retirement option for CSRS employees who transfer to FERS. Different rules and benefits apply to each of these options, so you need to make sure you are analyzing annuity options that are actual choices for you.

SPECIAL THRUSTERS: Be aware of special thrusters for some of these annuity forms, and when they do and don’t apply. For example, if you are under age 62 and qualify for immediate unreduced retirement under FERS, you are entitled to an immediate incremental benefit – the FERS Annuity Supplement – until you reach age 62. CSRS plan participants who do not owe deposits can make voluntary contributions to the retirement fund by submitting Standard Form (SF) 2804, “Application to Make Voluntary Contributions.” This allows CSRS plan participants to increase their annuities or receive a single payment.

THE TSP THRUSTER: The Thrift Savings Plan (TSP) offers phenomenally low management expenses, contributions with an investment match by the home agency for FERS participants, and solid management. However, it has some limitations on withdrawals and investing. In your retirement journey, consider how much you have in your TSP plan now and how much you will have at retirement. What is your goal and are you on target? If you are

age 50 or older, will you be able to deploy the afterburners and make TSP catch-up contributions of up to $6,000 per year in 2017, in addition to the standard $18,000 per year maximum in 2017?

THE SOCIAL SECURITY THRUSTER: Social Security is a fundamental element of the FERS retirement package but not available to many CSRS plan participants. Determine whether there are Social Security benefits to which you are entitled. Learn more by visiting www.ssa. gov/myaccount.

For CSRS plan participants, determine if the Windfall Elimination Provision (WEP) will reduce any such benefits. That is the case for many CSRS plan participants whose contributions toward Social Security were not made for certain service periods.

Another limitation is the Government Pension Offset (GPO): The Social Security benefit of an employee’s spouse may be offset if the employee has a government pension from work not covered by Social Security.

A WEP calculator is available at www.ssa. gov/planners/retire/anyPiaWepjs04.html and a GPO calculator is available at www.ssa.gov/ planners/retire/gpo-calc.html. You can also contact a local Social Security office to determine the effect of GPO/WEP on your Social Security benefits.

NON-FEDERAL THRUSTERS: Consider nongovernmental sources of income and savings available in retirement. Do you have a 401(k) plan? Another pension? An inheritance? A side business or second career? An oversized house in a high-demand area you can sell at a profit?

Rental income?

The house and/or relocation: Can or will you sell an oversized house and/ or move to a location that is less expensive and likely realize a sum of cash and/or a reduction in retirement earnings? This is a hidden thruster for many federal employees.

It’s important to get an accurate appraisal of the value of the house and develop a contingency plan if your retirement target date would cause you to sell during a time of depressed home values.

As a prelude, in most federal positions, there is no requirement to retire ...

The better question is, when will you have enough money and an adequate income flow to retire?

REDUCTIONS TO THRUSTERS

SURVIVOR ELECTIONS: For the federal annuity benefit, if you are married, full survivorship rights are required, unless your spouse signs off on a reduced amount. Full survivorship rights will reduce your annuity (by 10 percent under the FERS maximum survivor benefit), but provide a benefit subsidized by the federal government. This can help the surviving spouse hedge their longevity risk as well as the risk of an early demise of the primary pensioner, notes Mark Atherton, president of Reston, VA-based ClearLogic Financial Inc. TAXES: FERS and CSRS annuity payments are taxable. Social Security benefits may be taxable, depending on the source of income. TSP withdrawals generally are taxable (the exception is Roth money). With a fixed income in retirement, taxation can be an extremely important consideration, Atherton notes. “It is very beneficial to your retirement resources to limit income taxes across your retirement years,” he says. “This requires a detailed analysis of your tax situation and the alternative approaches to utilizing your assets and income streams in a particular priority order.” A Certified Public Accountant (CPA) or Financial Planner (CFP) may be useful for more complicated situations.

DIVORCE DECREES: These obviously may commit a portion of your retirement assets and cash flows to a former spouse.

THE COSTS: With reductions to your thrusters, what are your estimated retirement costs?

Start by listing what costs you will have (e.g., housing, food, medical, travel and entertainment expenses) and dependents you plan to support after retirement. Triggering retirement after major loads end, such as supportW W W. N A R F E . O R G

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blast off to federal Retirement ing children, could make for a much more enjoyable ride.

DO IT YOURSELF, OR HIRE A MASTER PILOT? At this stage, you should start compiling a rough approximation of your retirement benefits and costs. For many Feds with simpler employment patterns and less income, federal agency guidance, including home agency HR, and NARFE guidance (including website materials and webinars) may be enough. A financial planner may be helpful if your situation is complicated and, for example, includes an inheritance, multiple career sources or earnings; or if you are at the higher end of the income spectrum. Even a less complicated situation could be worth a limited consultation with a financial planner to map things

out if your financial knowledge or willingness to work through the numbers is limited. Use a financial planner with a fiduciary duty to put your interests first (such as a CFP) and with extensive experience counseling federal employees.

6 YEARS FROM RETIREMENT

Your destination is now in sight. You are close enough to do some serious planning, including contingency planning, such as how retiring a year or two earlier or later will affect your income and expenses. Request an estimate of your retirement annuity and a summary of service from your agency’s HR office. Determine if your records

rementONSTELLATIONS C to many reti E ly p G p a A s ld o E TH age thresh llowing key d that the fo Keep in min s: e related issu

32

ity deral annu different fe e th r e d n ums u eligibility rvice minim Annuity age and se s u ho ri a v re or TSP wit There a ou retire. F the reguy n e h w s s. g in option addition to tax equal ney or sav 1/2 y ur TSP mo e 59-1/2, in 55 or 59- have to withdraw yo articipant reaches ag rly withdrawal penalt rolled t a r p o e o n n n d la o a e p d y rr a u a e o p re to ansf Y they ments befo may have at is not tr drawal pay x, plan participants n of the payment th ring or after the year e), then e ta u io y lar income t of any taxable port rates from service d public safety emplo o do not a n ls p a e a se s rc re a e e ie p e penalt if they to 10 mploy ver, if an e ach age 50 oes not apply. These ants can elect. e re w o y e H r. th e r v a o ip d ye enalty tax 55 (or the , that partic reach age nt early withdrawal p lans, or equivalents of p e t the range the 10 perc ain annuity paymen om out of zo rt ly e c e lik to will apply insurance g-term care . n lo f o st Mid-50s o ilthat the c up by then when eligib Be aware ty if you do not sign rn age 62, fits, which tu u o y ili b re a e fo afford months be me to apply for ben requested ti o to three 0 n 62 and 7 ith Social Security tw determine the best ent is available whe w s, to tem Check in uced benefits begin Social Security Sta e d lin re n o e h ity for T .

0 e to t. ntil age 7 der that ag increase u w.ssa.gov/myaccoun ployees un ts. m fi e e s n e w e g w b ra h re u g nco edica throu ins. OPM e pply for M enefits beg fore turning 65 to a b 65 re a ic d e nths be ty for M g.

Eligibili SA at least three mo still workin S t c ta n less you are o n c u in g e b tions m distribu 70-1/2 ed minimu ir u q re P S T

are correct or if any service periods are missing.

Correcting mistakes can take many months.

According to these records, will you meet the age and service requirements to retire?

You also should do your own analysis of the income flows provided by your federal retirement benefits. A TSP estimator (www.tsp.gov/ PlanningTools) and OPM’s Federal Ballpark E$timate (www.opm.gov/retirement-services/ calculators/federal-ball-park-estimator) are tools to help you analyze your projected federal annuity and TSP benefits to determine approximately how much you will need to save to fund a comfortable retirement.

If you are not already receiving Social Security benefits, determine if you will be eligible, and if so, how much you are likely to receive, depending on the age you intend to begin receiving payments. A Social Security Statement is available online at www.ssa.gov/ myaccount (see “Age Constellations” sidebar for information).

However, these estimates will not reflect any reduction for the GPO/WEP. In addition, a Social Security payment estimator is available at www.ssa.gov/estimator.

Flag the likely challenges and issues for finalizing your annuity. These may include: Accounting for military service. Do you have documentation for these periods?

Another big question is whether or not to waive military retired pay.

Transitions in and out of federal service.

You will need accurate documentation for these periods to determine how they affect your annuity, health and life insurance eligibility, and benefits in retirement.

Career service with both CSRS and FERS Divorce These factors likely will require more preparation and could create snags in processing your retirement claim later unless they have been fully addressed. Start researching these issues now.

FEHBP AND FEGLI: Will you qualify to carry your Federal Employees Health Benefits Program (FEHBP) plan into retirement? To do so, generally you must participate in the plan as

an insured or covered family member for at least five consecutive years immediately prior to retirement and retire under a qualifying retirement system. “This is a large retirement benefit given the cost of health insurance in retirement and the fact the government continues to contribute to premiums,” notes Wan McCormick, a CFP at Fairfax, VA-based Reliable Alliance Financial LLC. The same five-year continuous coverage rule applies to carrying the Federal Employees’ Group Life Insurance (FEGLI) program into retirement.

Make sure you have the documentation in your personnel file to satisfy the five-year eligibility rule for both FEHBP and FEGLI. CONTINGENCIES FOR THE CREW: Consider how much life insurance you have under the FEGLI program and whether you wish to purchase more before you retire. Update all your beneficiary designations for your annuity, Social Security, TSP, FEGLI and any other benefits that can be conveyed.

CONDUCT PLANETARY PROBES: Use vacations to live the retirement life. Live in your retirement destination during the least favorable season for a month as a resident, not a tourist. How much does it cost? Is it what you thought it would be? Engage in hobbies you will develop further during retirement, which likely will be a large determinant of your happiness in your new world.

CHECK FOR FUEL: Is there potential fuel on your retirement world? Will there be additional sustenance or just the supplies you bring? Will you physically be able to have a second career, and do you intend to have one? How much money will it provide? While observing ethics rules for federal employees, you should consider moonlighting and talking to headhunters or prospective employers as you explore an encore career.

There are also limitations to re-employment as a federal employee, and earnings from such activities could affect the level of your Social Security benefits.

ASSEMBLE YOUR FINAL LANDING TEAM: Take your first pre-retirement course offered by your agency, and consult others who have taken the journey before you. While you may talk to W W W. N A R F E . O R G

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blast off to federal Retirement knowledgeable federal employees at your agency and elsewhere that are one to two years closer to retirement and compare notes, be careful to check this material with the smaller set of authoritative sources, including your human resources personnel and benefits agencies such as OPM, TSP and Social Security Administration. Information on retirement topics are available from NARFE through the magazine, website, webinars and conferences.

If applicable, consult your own financial planner.

DEVELOP A STRATEGY TO DEPLOY THRUSTERS:

In addition to the annuity, develop a general strategy for drawing down your TSP (if applicable), 401(k), or other savings and stock assets.

After leaving federal government, there are two options for withdrawing funds from your TSP account: a partial or full withdrawal. A partial withdrawal allows you to make a one-time-only withdrawal and to leave the rest of your money in the TSP until a later date. Use Form TSP77PDF, “Request for Partial Withdrawal When Separated,” but be mindful that specific limitations apply. When you are ready to withdraw all of the money from your TSP account, you can withdraw all at once, as monthly payments in an amount you set, or you can purchase an annuity that will make payments to you for life. Use TSP-70, “Request for Full Withdrawal.” Legislation has been introduced to expand TSP withdrawal options.

Taxation considerations can be key and may vary by the order in which these assets are tapped. Often the low cost and tax implications of TSP withdrawals will argue for making all or most of that fund a late-stage deployment to cover expenses.

THE ASTEROIDS: Awaiting unwary space travelers, these factors are really bad news. Some are highly likely, while others should be kept in mind as possibilities. Health care and longterm care costs continue to skyrocket.

Health care costs: It is critical to understand how FEHBP interacts with Medicare benefits, and consider whether it would be beneficial to enroll in Medicare Parts A and B. “The additional cost of enrolling in 34

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Medicare Parts A and B must be weighed against additional coverage and some reduced costs, such as some deductibles and co-pays, when Medicare is the primary insurer,” McCormick notes. “Even with good coverage, you will need to estimate your contributions.”

FLTCIP: Premiums for long-term care insurance programs, such as the Federal Long Term Care Insurance Program (FLTCIP), also have skyrocketed in recent years and will likely continue to increase.

If such a policy is not purchased, one must budget for the costs of long-term care.

2 YEARS OUT

FINAL PREPARATIONS START!

It’s time to prepare your landing vehicle, your retirement application, upon which your annuity hinges.

THE LAUNCH PAD: Examine (or reexamine more carefully) your electronic Official Personnel Folder (eOPF) and make sure you have a record of all federal service, including the exact beginning and ending dates, all records of pay changes, particularly those that apply to the calculation of your high-three salary years, military records, breaks in service, any periods for which there were no retirement deductions, and hours worked during part-time employment.

CONSULT WITH MISSION CONTROL: Meet with an agency retirement counselor to determine any holes and fill them. Make sure you have a record of periods you were enrolled, or covered under a federal spouse’s enrollment, in FEHBP or TRICARE. Ask for a review of your record to see if any of your service may require a service credit payment to receive a full credit for the service in computing your annuity. Such issues can arise if there were periods of non-deduction service, refunded contributions, or post-1956 military service. While it often makes sense to pay such deposits, given a one-time payment generally will yield a stream of higher annuity payments, in some cases it may not. This is a complicated area in which agency or expert

guidance is recommended.

Your agency will provide an estimate of your annuity, but it is only an estimate, which you should double-check. OPM prepares the final amount.

GAUGE YOUR COSTS: Fine-tune your retirement costs, as you should have a better idea of those now.

KNOW EXACTLY WHEN TO LAND: Finalize what month and day to retire. Retiring at the end of the year, for example, maximizes the lump sum annual leave payment. Retiring at the end of the last full month for FERS participants, and by the third day of the last month for CSRS plan participants, is often advantageous.

FORMER SPOUSE: Indicate whether you have a living former spouse to whom a court order awards a survivor annuity, or a portion of your

retirement benefits, based on your federal employment. If you answer “yes,” you must submit a certified copy of the court order and any attachments or amendments.

LIQUIDITY: Start to maximize savings by reducing costs. Realize it may take OPM several months, or more, to process your annuity retirement claim, and during this period you will only have interim annuity payments, which are smaller than the full annuity payments. You may need savings to live on during that period. Verify whether state taxes will be taken out of your benefits.

1 YEAR OUT

Schedule another appointment with your HR retirement counselor to confirm the accuracy of your eOPF. Keep tabs on the status of the

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

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blast off to federal Retirement assembly of your record. Attend pre-retirement counseling at the agency and re-review retirement deadlines and materials. Soon you will have to make decisions that count, some of which are irreversible. Now is the time to pay off any indebtedness to the government, such as granted but unearned leave, travel fees and salary overpayments.

Certain supplies must be used up and cannot be taken to the new world. Use up flexible spending accounts (FSAs): Health care FSAs and limited expense health care FSAs end upon retirement, and dependent care FSAs end at the end of the benefit period.

PREPARE THE FINAL ANNUITY FLIGHT PLAN: Exactly how much time in service will you have? Unused annual leave and sick leave count as time

in service. Annual leave can be received as a lump sum payment upon retirement and can be used toward initial eligibility for retirement in RIF situations, while sick leave counts toward calculation of your retirement with an immediate annuity. Preparation of the retirement application and related forms should definitely start now, especially in the case of more complicated service records (e.g., gaps in service, military service, multiple agencies). See sidebar below, “The Key Forms.”

Prepare the IRS Form W4-P, “Withholding Certificate for Pension or Annuity Payments,” which must be filed with OPM to tell it how much to withhold from your annuity for income taxes. If not

ith an imtirement w re r fo ly p p to a is the form ll ment.” This re ti e elect the fu R te you do not Immedia FERS e r if fo ly n n o o ti d a e quir pplic nuity. .” This is re SF 3107: “A er than deferred, an or Election th iv ra rv , u te S tioner.” ia to d t e m Consen Compensa ’s r o . se t u se n o u a p o ll of your it u “S sp continue a as an Ann e SF 3107-2: efit for your current to g t n ra a e v w o t no n ce C d if you do ife Insuran survivor be ial uation of L I can be use n L ti G n E o F r P-77 (part “C : fo ” SF 2818 cluding TS process a Election in , e c ts n n e ra m su e t. ife In men eks to isburs SF 2817: “L insurance into retire n of TSP d up to 8 we nd separation e our electio to OPM, it may take a y lif s l r a rm fo n o fo ry ti l a p a o ithdraw s necess ording c w c rm d A fo . te l) le te a p le w m p TSP: Com , TSP-70 (full withdra ffice receives all co O l) withdrawa fter the TSP Service la a w ra d h it w f forms: ic package o s a b g data. in w o ll plete the fo should com s rement.” e ti e e y R lo r Spouse p te m ia CSRS e Immed ent/Forme .” r rr n fo u o C ti n c o n ti le o a E ti a r pplic mbin rvivo SF 280: “A on. nuity or Co nsent to Su urvivor An ke this type of electi pouse’s Co S “S : se 2 u o 1p 0 S 8 a r e m SF 2 rm to o h F is f ed if you w “Election o nd. e.”

SF 2801-3: uity,” which is requir n tirement fu ce Coverag n A d of your s” to the re ife Insuran Survivor n L o f ti o ant a refun u n w ib o u tr ti o a n y u o if n C ti ly n ry n o o ta n “C d lu quire SF 2818: to Make Vo which is re pplication Election,” s n o ti u ib SF 2804: “A Contr “Voluntary tion.

RI 38-124: ntributions. cial institu co nk or finan a b nd voluntary r u o 0 y 8 from SF 2 8 a 3102/CSRS mplete: est this form F u co S q S ld re R u r o E o h F ” s s es Form well a All employe sit Sign-Up SF 2823 as ment or irect Depo for FEGLI “D : rm A fo 9 ” 9 credit pay ry 11 e ia ic c SF fi rv e se n e a ake nation of B posit” to m The “Desig sit or Rede ment.” o p e D a . e -3 k Ma Pay the TSP ice Credit lication to ake a Serv 803, “App CSRS SF 2 8, “Application to M 10 FERS SF 3

forms: package of ic s a FORMS b g in Y THE mKploEyees should complete the follow

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blast off to federal Retirement OFFICE OF PERSONNEL MANAGEMENT RESOURCES specified, OPM will apply the default withholding of married with three exemptions. Check in with your agency to see if it has its own paperwork forms that must be completed to help process retirement claims. Take a look at how long it takes OPM to process retirement claims, which is available in narfe magazine. Actively monitor communications from your agency, particularly for forms they need, questions they have, and word of buyouts or early outs.

6 MONTHS

Determine your landing date, and make key final decisions. If you opt to waive military retired pay to receive credit in your federal annuity calculation, send the Retired Pay Operations Center your waiver 60 to 90 days before your retirement.

Inform your supervisor of the proposed retirement date. Be sure to select an exact retirement date, as you will need that to determine your estimated annuity payments. Make sure you have accurate new address and contact information for retirement, if it will change. Gather information regarding any workers’ compensation benefits for which you filed or received. Set up direct deposit of annuity payments on your retirement application.

2-4 MONTHS OUT

Give your completed retirement application to the personnel office of your employing agency, unless you have been separated from federal service for more than 30 days, in which case it goes to OPM. They will forward your application to your agency payroll office and then to OPM for processing.

Obtain an estimate of how long after separation your agency will submit the retirement application and when you will receive a lump sum payment for any annual leave. Submitting a letter of resignation is undesirable and unnecessary, as it could negatively impact benefits to your survivors.

Get all key documents and contact information and make hard copies, disk copies, and possibly internet cloud copies.

Record agency human resource contact information. Your support network is about to diminish, so include calculations and assump-

OPM offers a detailed time-ordered checklist for both CSRS and FERS employees that provides more detail on planning and applying at www. opm.gov/retirement-services/csrs-information/ planning-and-applying/#url=Within-Months.

The federal retirement planning opinions expressed in this article are those of the author, not the federal agencies.

tions in your notes. Your memory of what you did, when you did it, and why you did it will likely fade with time.

When your personnel office notifies you that your final retirement itinerary is ready, review and sign the SF 3107-1 (FERS) or SF 2801-1 (CSRS), “Certified Summary of Federal Service.”

Make sure you review your service record and ensure that it corresponds to your own records.

Complete all customary agency exit procedures, such as security attestations, allowing several days to obtain and complete these forms.

Update your address with TSP, OPM and SSA, particularly if you are relocating.

UPON RETIREMENT

The Eagle has landed. Following retirement, OPM will provide critical information and funds. Notably, you will start off with an interim annuity that averages 80 percent of the final annuity and is deposited on the first business day of each month.

When does your annuity arrive? In fiscal 2017, through February 2017, OPM processed 56 percent of its claims in 60 days or less, compared to 80 percent in February 2016.

Claims processed within that 60-day window took OPM an average of 38 days to process.

Claims beyond that window took an average of 104 days to process. If your paperwork was in the “easy” bucket, you could receive benefits in a month or two. For those in the “difficult” bucket, it could take three months, or more, to receive permanent benefits.

Your journey is over, and you are now ready to enjoy the retirement that you have envisioned.

—DAVID TOBENKIN IS A FREELANCE WRITER IN THE GREATER WASHINGTON, D.C. AREA.

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Attn: Federal Employees and Retirees

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Take advantage of your $2,500 hearing benefit.

Call YHN at 877-696-5335.

Your Hearing Network gives you easy access to a network of carefully screened hearing care professionals and a wide selection of digital hearing aids.

* Disclaimer: Your out-of-pocket costs may vary depending on plan benefits, eligibility, deductible, co-insurance and model of device chosen. This is not a guarantee of coverage or payment. Benefit is not available through all insurance plans. Please consult your plan for coverage details.

Managing Money

WHAT CAN YOU DO WHEN YOU DON’T NEED AN RMD?

E

ven if you don’t want to take withdrawals from your tax-deferred retirement plan, such as the Thrift Savings Plan (TSP) or a traditional IRA, required

minimum distributions (RMDs) are the Internal Revenue Code’s mechanism for forcing you to do so. But what if you’re fortunate enough to not need the RMDs? What are your options?

RMD rules apply to all employer-sponsored retirement plans as well as traditional IRAs and IRA-based plans, such as SEP and SIMPLE IRAs. While Roth IRAs are not subject to RMDs, the Roth TSP and Roth 401(k)s are.

Generally, you must take your first RMD in the year you turn age 70-1/2. If you are still working, however, you don’t have to take your first RMD from your current employer’s retirement plan until the year you separate from service.

Once RMDs begin, you must continue taking an RMD each subsequent year.

If you don’t need an RMD, there are several strategies you may want to consider. I’ll start by explaining what you can’t do with your RMD. For starters, there’s a 50 percent penalty on any RMD you fail to take, so the last thing you want to do is avoid taking an RMD. You’re not permitted to take an RMD from one retirement plan and put it

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into another retirement plan.

For example, you can’t take an RMD from your TSP and put it into an IRA. You’re also not permitted to convert an RMD to a Roth IRA. Once the money is out, it’s out — that’s the point of RMDs. That doesn’t mean you’re forced to park the money in the bank, though. If you don’t need the money now, but may need the money later, you can always put the money into a non-IRA investment based on your goals and objectives.

Furthermore, depending on your employment status, the extra cash flow may allow you to start contributing, or increase your contributions, to your employer’s retirement plan or Roth IRA, if eligible.

As previously mentioned, if you’re still working after age 70-1/2, you don’t have to take RMDs from your current employer’s retirement plan until you stop working. Therefore, it’s possible to delay RMDs by transferring eligible non-

BY MARK A. KEEN,

CFP®

current employer retirement plans to your current employer’s retirement plan.

If you’re charitably inclined, consider using the qualified charitable donation (QCD) option for your RMDs. The QCD is a charitable contribution made directly from an IRA to your charity of choice. You may donate up to $100,000 (or $200,000 for couples filing jointly) with the QCD, and the donation will go toward satisfying your RMD without having to report the QCD as income. One drawback to the QCD, however, is it may only be used with an IRA and not an employer-based retirement plan, such as the TSP. You also could use your RMDs to make lifetime gifts to your heirs. Your children and grandchildren could use the money to fund their employer’s retirement plan, or a Roth IRA, if eligible. The additional years in a taxadvantaged retirement plan could prove hugely beneficial.

Lifetime gifts may not only make financial sense, but you’ll also get personal gratification from seeing the money put to use.

Continuing with the gifting theme, funding a college savings 529 plan for your heir’s higher education is another option. Besides providing your heir with a valuable gift,

BENEFITS RESOURCES NARFE offers members a wide range of information on federal benefits. Visit www. narfe.org/federalbenefits and www.narfe.org/ FederalBenefitsInstitute.

you may benefit from a state income tax deduction as well. Perhaps the biggest benefit, though, comes from the tax-free withdrawals when the 529 plan money is used for qualified education expenses. Although your contributions to a 529 plan are considered a completed gift, you still maintain full control of the money for as long as you remain owner of the 529 plan. This means you always have the option to pull money out

of the 529 plan for your personal use. You may have to pay income tax and a 10 percent penalty on the earnings, but it’s an option if you ever find yourself in need of money.

While you can’t convert an RMD to a Roth IRA, you may convert the money after taking it out of your RMD. The funds from the RMD could be used to pay the additional taxes owed on the conversion, and since Roth IRAs are not subject to RMDs, any amount you do convert will reduce future RMDs. Be sure to think about long-term strategies if you want to maximize the value of your retirement accounts.

MARK A. KEEN, CFP®, IS PARTNER, KEEN & POCOCK, 10300 EATON PLACE, FAIRFAX, VA, AND AN INVESTMENT ADVISER REPRESENTATIVE AND REGISTERED PRINCIPAL OF THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA). SECURITIES AND ADVISORY SERVICES ARE OFFERED THROUGH SFA. EMAIL: MKEEN@KEENPOCOCK.COM.

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

CONTACT INFORMATION o Mr. o Mrs. o Miss o Ms. Full Name _____________________________________________ Street Address _________________________________________ Apt./Unit ______________________________________________ City _______________________ State _____ ZIP _____________ Phone (__________) ____________________________________ Email ________________________________________________ Date of Birth _____ /_____ /_________ dd

mm

yyyy

Recruiter ID # (if applicable) _______________________________ Chapter Number (if applicable) ____________________________ (call 800-456-8410 for chapter information) MEMBERSHIP INFORMATION Member Number: _______________________________________ (New members) Membership is open to civilians in any agency of the federal or D.C. (before Oct. 1, 1987) governments eligible for a federal annuity.

Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin.

Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes.

I am a (check all that apply)

o Active Federal Employee o Active Federal Employee Spouse

o Annuitant o Annuitant Spouse o Survivor Annuitant

Life Membership Fee Schedule Ages 30-39 40-50 51-55 56-60 61-65 66-70 71-75 76-80 81-90 91-100+

Single or Quarterly Payment Installments $1,796 $450.25 1,408 353.25 1,127 283.00 960 241.25 801 201.50 653 164.50 514 129.75 392 99.25 251 64.00 127 33.00

PAYMENT INFORMATION o Single Payment or o Quarterly Installments (4 payments) Life Membership fee amount: $ _____________________ PAYMENT OPTIONS o Check or Money Order (Payable to NARFE) o Charge my: o MasterCard o VISA o Discover o American Express Card No. _________________________________________ Expiration Date _____ /_______ Security Code (CVV) ____ mm

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Name on Card _____________________________________ Signature ________________________ Date ___________ MAIL THIS APPLICATION TO NARFE Member Records 606 N. Washington St. / Alexandria, VA 22314-1914 W W W. N A R F E . O R G

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41

The Informed Citizen

THE FEDERAL FAMILY: AN INCREASE IN ANNUITANTS

T

he federal family, comprised of annuitants, federal employees and postal employees, grew nationwide and in almost every state during fiscal year 2016. However, these fiscal year totals from the Office of Personnel Management (OPM) and the U.S. Postal Service show most of the change is explained by the growing number of employee annuitants.

The table on the opposite page shows the number of increases but also a decline in the number of survivor annuitants (except in four states).

Notable outliers include three states (Arkansas, Iowa and New Jersey) and one territory (U.S. Virgin Islands) that had smaller total counts in fiscal year 2016 than 2015. Also last fiscal year, another 129,178 annuitants had annuity commencement dates.

Modest Fixed Income The two federal retirement systems are sufficiently different that we show both the mean and median annuity for each group in the table below.

Cite the median when informing federal and state policymakers about the modest, fixed incomes of federal retirees. The median is the middle of a range of numbers — half of the annuities are larger, half are smaller — and should not be confused with the average (or mean).

BY CHRISTOPHER FARRELL SENIOR ANALYST

your state, use the contact information below. For each five-digit ZIP code, the listing shows the total number of annuities, the gross and the net annuity.

Note: Annuitant totals are based on place of residence; employee totals are based on place of employment. Many of the federal employees counted in the District of Columbia live in the surrounding states.

Two-Edged Sword These are large numbers, and the data create high expectations among legislators. If lawmakers do not hear from impacted constituencies, they’ll assume no one is watching or cares. Once NARFE has taken a position, it is incumbent on members to advocate.

All Annuitants Contrasted Data for All Members with Newest Annuitants While much of this information Annuitants covered by the Civ- Totals by ZIP Code is available online, I am eager to il Service Retirement System OPM has provided NARFE provide counts mentioned here.

(CSRS) make up about 71.5 with 2015 annuitant counts You can contact me at cfarrell@ percent of all current annuiby ZIP code. To obtain antants while Federal Employee narfe.org or 571-483-1265. nuity counts by ZIP code for Retirement System (FERS) annuitants comprise 28.5 MEAN (AVERAGE) AND MEDIAN (MIDPOINT) percent. However, these percentages were almost MONTHLY ANNUITIES BY SYSTEM BY YEAR flipped when looking

CSRS 2016 FERS 2016 CSRS 2015 FERS 2015 CSRS 2014 FERS 2014 at employee annuitants EMPLOYEE MEAN* $3,586 $1,392 $3,529 $1,355 $3,414 $1,297 added to the rolls in FY EMPLOYEE MEDIAN 3,118 1,082 3,066 1,049 2,969 999 2016. Among the newest SURVIVOR MEAN** 1,575 557 1,560 544 1,520 524 annuitants, FERS accounts SURVIVOR MEDIAN 1,396 432 1,387 420 1,349 404 for 70.4 percent and CSRS * Employee Annuitants ** Survivor Annuitants for 29.6 percent.

42

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the federal family Civilian Annuitants, Employees and Postal Employees The chart is a snapshot in time of the federal family. Dates and sources of the data are listed below. Please note, federal and U.S. Postal Service (USPS) employee categories are based on place of employment, not residence. Use these numbers in communications with elected officials. (Note: Blue numbers denote annual decrease.)

TOTAL

TOTAL MONTHLY ANNUITANTS

ANNUITANTS EMPLOYEE SURVIVOR ANNUITIES FEDERAL USPS AND STATE/AREA ON ROLL* ANNUITANTS* ANNUITANTS* ($000s)* EMPLOYEES** EMPLOYEES*** EMPLOYEES ALABAMA 59,325 46,246 13,079 $150,956 38,435 9,168 106,928 ALASKA 8,372 7,094 1,278 $21,323 11,053 1,534 20,959 ARIZONA 58,513 47,646 10,867 $141,478 31,783 9,901 100,197 ARKANSAS 25,204 19,645 5,559 $52,892 12,909 5,535 43,648 CALIFORNIA 215,115 168,465 46,650 $538,974 141,158 67,489 423,762 COLORADO 51,606 42,265 9,341 $135,991 36,847 11,167 99,620 CONNECTICUT 14,806 11,484 3,322 $35,576 8,068 8,554 31,428 DELAWARE 10,782 8,843 1,939 $31,885 3,149 2,131 16,062 DISTRICT OF COLUMBIA 44,187 36,625 7,562 $156,891 173,421 5,481 223,089 FLORIDA 179,853 144,060 35,793 $460,912 79,238 36,175 295,266 GEORGIA 88,270 70,272 17,998 $218,019 72,265 17,998 178,533 GUAM 2,502 1,689 813 $4,455 2,400 111 5,013 HAWAII 25,281 18,838 6,443 $68,298 22,369 2,432 50,082 IDAHO 15,769 13,063 2,706 $38,049 8,243 2,614 26,626 ILLINOIS 70,215 56,718 13,497 $176,626 41,404 29,982 141,601 INDIANA 38,137 30,594 7,543 $86,817 23,245 12,637 74,019 IOWA 21,411 16,967 4,444 $47,326 8,669 7,882 37,962 KANSAS 25,088 20,201 4,887 $58,664 16,038 6,617 47,743 KENTUCKY 34,163 27,210 6,953 $73,643 22,790 7,801 64,754 LOUISANA 28,001 22,469 5,532 $64,652 18,378 8,381 54,760 MAINE 14,070 11,120 2,950 $31,817 10,422 3,438 27,930 MARYLAND 163,906 134,631 29,275 $592,070 130,402 13,729 308,037 MASSACHUSETTS 42,065 32,043 10,022 $103,033 24,917 16,860 83,842 MICHIGAN 46,356 38,150 8,206 $111,200 25,543 22,195 94,094 MINNESOTA 30,395 24,485 5,910 $70,225 16,430 12,804 59,629 MISSISSIPPI 26,096 20,483 5,613 $59,080 17,796 5,029 48,921 MISSOURI 55,284 44,655 10,629 $130,342 34,435 15,686 105,405 MONTANA 13,864 11,595 2,269 $33,749 9,061 2,121 25,046 NEBRASKA 13,654 10,755 2,899 $29,785 9,801 4,684 28,139 NEVADA 24,964 20,789 4,175 $62,319 10,859 4,444 40,267 NEW HAMPSHIRE 12,923 10,227 2,696 $32,995 4,312 3,276 20,511 NEW JERSEY 53,291 40,479 12,812 $145,551 20,566 22,598 96,455 NEW MEXICO 28,862 23,635 5,227 $71,264 21,842 3,197 53,901 NEW YORK 94,956 74,338 20,618 $218,118 52,633 46,343 193,932 NORTH CAROLINA 78,882 63,528 15,354 $199,236 43,589 19,897 142,368 NORTH DAKOTA 6,724 5,390 1,334 $14,245 5,578 1,902 14,204 OHIO 76,391 60,532 15,859 $191,723 49,549 23,947 149,887 OKLAHOMA 48,062 37,403 10,659 $108,502 38,220 7,126 93,408 OREGON 34,873 28,415 6,458 $86,889 18,788 7,104 60,765 PENNSYLVANIA 109,655 86,157 23,498 $267,706 60,339 29,244 199,238 PUERTO RICO 11,857 9,302 2,555 $22,686 9,608 2,691 24,156 RHODE ISLAND 7,720 5,661 2,059 $18,098 7,373 2,732 17,825 SOUTH CAROLINA 46,144 36,557 9,587 $110,247 20,932 8,348 75,424 SOUTH DAKOTA 10,938 9,037 1,901 $24,226 8,331 2,055 21,324 TENNESSEE 48,603 38,884 9,719 $115,068 26,411 12,553 87,567 TEXAS 175,967 139,200 36,767 $420,614 114,170 43,658 333,795 US VIRGIN ISLANDS 630 501 129 $1,158 340 157 1,127 UTAH 34,907 27,816 7,091 $85,754 28,063 5,554 68,524 VERMONT 4,649 3,773 876 $10,747 3,290 1,642 9,581 VIRGINIA 145,117 117,475 27,642 $483,243 136,377 16,866 298,360 WASHINGTON 69,598 56,130 13,468 $178,366 54,046 12,526 136,170 WEST VIRGINIA 18,804 15,515 3,289 $45,744 15,201 3,774 37,779 WISCONSIN 28,441 23,098 5,343 $62,659 15,312 11,877 55,630 WYOMING 6,047 5,057 990 $13,980 5,589 1,093 12,729 FOREIGN COUNTRIES & TERRITORIES NOT BROKEN OUT ABOVE 23,966 14,167 9,799 $36,989 30,314 20 57,645 TOTAL 2,625,261 2,091,377 533,884 $6,752,855 2,091,406 644,760 5,361,427 *OFFICE OF PERSONNEL MANAGEMENT, FISCAL YEAR 2016 (OCTOBER 1, 2015 - SEPTEMBER 30, 2016) **OFFICE OF PERSONNEL MANAGEMENT FEDSCOPE, DECEMBER 2016. (THE LOCATIONS OF AN ADDITIONAL 238,160 EMPLOYEES ARE SUPPRESSED FOR SECURITY REASONS. EXCLUDES THE INTELLIGENCE COMMUNITY, FOREIGN SERVICE PERSONNEL AT THE STATE DEPARTMENT, THE JUDICIAL BRANCH, MUCH OF THE LEGISLATIVE BRANCH AND CERTAIN OTHER POSITIONS.) ***U.S. POSTAL SERVICE, APRIL 2017

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

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43

2017

G FUND

F FUND

C FUND

S FUND

I FUND

MAY

0.19%

0.81%

1.41%

-0.77%

3.76%

APRIL

0.20%

0.81%

1.03%

1.15%

2.62%

MARCH

0.20%

-0.01%

0.12%

-0.08%

2.85%

YTD

0.98%

2.57%

8.67%

4.96%

14.31%

1 YEAR

2.02%

1.86%

17.49%

18.74%

16.84%

3 YEAR*

2.06%

2.94%

10.20%

7.92%

1.88%

5 YEAR*

1.97%

2.64%

15.47%

14.66%

10.57%

10 YEAR*

2.53%

4.71%

6.99%

7.50%

1.34%

L INCOME

L 2020

L 2030

L 2040

L 2050

MAY

0.55%

0.86%

1.22%

1.38%

1.51%

APRIL

0.50%

0.76%

1.07%

1.21%

1.34%

MARCH

0.33%

0.48%

0.64%

0.71%

0.78%

YTD

2.80%

4.59%

6.52%

7.46%

8.30%

1 YEAR

5.07%

8.41%

11.75%

13.45%

15.05%

3 YEAR*

3.38%

4.51%

5.65%

6.19%

6.58%

5 YEAR*

4.48%

8.08%

10.00%

11.23%

12.35%

10 YEAR*

3.67%

4.40%

5.02%

5.27%

N/A

2017

*ANNUALIZED

*ANNUALIZED

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

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

OPM RETIREMENT CLAIMS PROCESSING STATUS

2016

2017

For the Record

MOST TSP FUNDS CONTINUE TO CLIMB IN MAY; S FUND SLIPS

THRIFT SAVINGS PLAN FUND RETURNS

Claims Received

Inventory

Avg # of Days (Steady State % Processed in to Process Case in is 13,000) 60 Days or Less (FYTD) More Than 60 Days

APRIL 7,241 14,517 MAY 7,210 14,035 JUNE 5,929 13,529 JULY 9,238 15,562 AUGUST 6,818 16,334 SEPTEMBER 6,946 15,146 OCTOBER 7,326 16,677 NOVEMBER 5,065 16,019 DECEMBER 5,483 15,097 JANUARY 15,317 23,087 FEBRUARY 9,114 23,916 MARCH 7,216 20,530 APRIL 6,581 18,932

80% 80% 79% 79% 78% 77% 58% 60% 56% 51% 56% 61% 56%

92 103 115 110 112 100 91 94 95 89 104 105 80

FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. Source: OPM 44

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Better first-quarter corporate earnings reports helped many large capitalization U.S. stocks maintain gains. The C Fund was ahead for the month while the S Fund’s returns slipped. Returns of international stocks also were lifted by corporate earnings, and the I Fund further benefited from the dollar’s continued decline.

Lingering doubts about future economic growth caused a decrease in U.S. Treasury yields, leading to gains for the F Fund. All of the L Funds achieved positive performance for the month.

—BY SEAN MCCAFFREY, DEPUTY CHIEF INVESTMENT OFFICER, THRIFT SAVINGS PLAN

COUNTDOWN TO COLA

T

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.33 percent in April 2017. To calculate the 2018 cost-of-living adjustment (COLA), the indices of July, August and September 2017 will be averaged and compared with the 2016 third-quarter average of 235.057. The percentage increase, if any, determines the COLA. April’s index, 238.432, is up 1.44 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. April’s index is 1.29 percent higher than the December 2016 base index of 235.390.

The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes.

MONTH

CPI-W

Monthly % Change

% Change from 235.057

OCTOBER 2016

235.732

+0.10

+0.29

NOVEMBER

235.215

-0.20

+0.06

DECEMBER

235.390

+0.07

+0.14

JANUARY 2017

236.854

+0.62

+0.76

FEBRUARY

237.477

+0.26

+1.03

MARCH

237.656

+0.08

+1.11

APRIL

238.432

+0.33

+1.44

MAY JUNE JULY AUGUST SEPTEMBER

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WHAT’S ON YOUR MAILING LABEL?

W

e’ve changed the format of your magazine mailing label to make it even more user-friendly with the addition of your membership expiration date to let you know when to renew.

Knowing how to decode your mailing label provides you with key information about your membership, including your membership ID number, chapter number, membership expiration date and state voting district.

Let’s examine the all-important second line of your mailing label to see what information it contains. Take a close look at the following information shown in the diagram at right, which shows a color-coded, numbered sample mailing label: Membership ID number: On the second line of the mailing label, beginning with the pound (#) symbol, is your member-

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ship ID number.

The membership ID number is used to log in to the NARFE membersonly section of the website. After the space, there is one last digit before the right-hand pound (#) symbol, which is a check digit to promote mailing accuracy, and is not part of the membership ID number.

Chapter number: Preceded by a “CH” is your chapter number – for those who belong to a chapter. This is omitted for NARFE members who do not belong to a chapter.

Membership expiration date: This is the date your membership expires. Please renew before the “EXP” date (in MM/ DD/YY format) to ensure continuity of service. If you’ve signed up

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for automatic membership renewal, this is the date on which your membership will renew. Those who are life members will see the word “LIFE” and those who are participating in the dues-withholding program will see the word “AUTODEDUCT.” Voting district: This shows your congressional voting district as a two-letter state abbreviation, followed by your two-digit voting district, i.e., MD08 in the label above.

Your mailing label is a ready reference to key membership information – keep it handy!

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MAKE PLANS TO ATTEND THE 2018 NARFE NATIONAL CONFERENCE You’ll want to save the date for NARFE’s NEW national conference on August 26-29, 2018. Join us at the Hyatt Regency Riverfront in Jacksonville, Florida, a wonderful waterfront locale that will be the site of our first national conference. With a new format to inform and engage the federal community, this is an event all members will want to attend. Watch for details and updates in upcoming issues of narfe magazine and on the NARFE website.

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NARFE’s Changing Culture

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ransformation is a business imperative for organizations, and it begins with strategy.

Oftentimes, strategy focuses primarily on the business aspect without giving adequate consideration as to how the culture of an organization impacts implementation of strategy. In other words, the promise of strategy can go unrealized due to a disconnect between the business strategy and the culture of an organization.

The 2017 Strategic Planning Committee is tasked with making suggestions on specific actions NARFE should pursue to strengthen the organization’s ability to fulfill its mission, now and in the future. In preparation, we reviewed an updated situation analysis in the current strategic plan. As a member of the committee, I thought it might be beneficial for our group to acknowledge a few points about the culture change taking place within NARFE. Increased emphasis on grassroots legislative advocacy through a Congressional District Leader and State Leader organizational structure. The Future of NARFE Committee’s 2014 report emphasized grassroots advocacy. Establishing congressional district and senate leaders has been strongly encouraged by NARFE to achieve this goal. Grassroots advocacy, together with lobbying

by NARFE HQ professionals and funding from the NARFE Political Action Committee, will help ensure that federal employee and retiree benefits remain secure in the future.

Transition to comvisioned its own desired petitively selected future for NARFE and professional recommended acmanagement, tions to achieve that such as the hiring vision. Strategic of our new execuplanning has been tive director, Barand will continue SECURE bara Sido. NARFE to be an ongoing has been fortunate process within THE in recent years to NARFE to ensure FUTURE have retired federal the organization leads employees and spouse the way in being an annuitants as effective effective advocate for all managers. With the reduction of federal employees and retirees. national officers from four to two, It also is good to reflect on the however, NARFE recognized that criteria of success put in place by it needs a president to be the face the NARFE National Executive of the organization, an executive Board for strategic planning: director to manage the day-to-day • Create a Strategic Plan that will operations and a treasurer to keep provide the path for the continuthe organization financially sound. ing viability of NARFE and will Integration of ongoing strabe revised at least every two tegic planning for NARFE. Loryears as experience and member raine Hansberry, a playwright and feedback warrants. author of “Raisin in the Sun,” once • Ensure that the NARFE advosaid, “Never be afraid to sit awhile cacy program mission is mainand think.” Organizations also need tained as strong and respected to take time to “think” and plan for and that grassroots efforts are their future. To that end, NARFE enhanced. integrated strategic planning into • Develop strategy to ensure its corporate structure in order the future financial security of to continue as an effective advoNARFE to enable funding of the cate for all federal employees and NARFE mission/operations. retirees.

• Determine the best overall Strategic planning, as defined structure to sustain and improve

by BusinessDictionary.com, is a NARFE mission accomplishment. “systematic process of envisioning I am honored to be part of the a desired future, and translating current strategic planning process this vision into broadly defined to keep our organization vital into goals or objectives and a sequence the future. And I know we all desire of steps to achieve them.” Following to continue to achieve our mission the lead of the Future of NARFE of protecting the rights and benefits Committee and the previous Strawe earned serving our nation. tegic Planning Committee, the 2017 —TED VAN HINTUM, REGION VII, COLORADO, MEMBER OF THE 2017 STRATEGIC PLANNING COMMITTEE Strategic Planning Committee en-

S T R AT E G I C PL ANNING

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Active and Retired Federal Employees ...

Join NARFE Today!

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

Who Should Join the National Active and Retired Federal Employees Association?

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

NARFE MEMBER BENEFITS

• Get monthly issues of narfe magazine with news and insights for the federal community.

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

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

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

NARFE MEMBERSHIP APPLIC ATION q YES. I want to join NARFE for the low annual dues of $40. q Mr. q Mrs. q Miss q Ms.

____________________________________________________

Full Name

____________________________________________________

Street Address

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

q VISA q Discover

q AMEX

________________________________________________ Card No. Expiration Date _____ /_________

____________________________________________________

Apt./Unit

____________________________________________________

City

State

ZIP

____________________________________________________

Phone

____________________________________________________

Email

I am a (check all that apply) q Active Federal Employee q Active Federal Employee Spouse q Annuitant

1Q6

q Annuitant Spouse q Survivor Annuitant

q Please enroll my spouse _______________________________________________

Spouse’s Full Name

_______________________________________________ Spouse’s Email

THREE EASY WAYS TO JOIN 1. Complete this application and mail with your payment to NARFE / Member Records / 606 N. Washington St. / Alexandria, VA 22314-1914

2. Join online at www.narfe.org.

3. Call 800-627-3394, Monday through Friday, 8 a.m. to 5 p.m. ET.

mm

yyyy

________________________________________________ Name on Card ________________________________________________ Signature ________________________________________________ Date

TOTAL DUES $40 Annual Dues X ___________ = ___________ Per Person # Enrolling Total Dues Dues payments are not deductible as charitable contributions for federal income tax purposes.

MAY WE THANK SOMEONE? If applicable, please provide the name, membership and chapter number of the member who introduced you to NARFE: ________________________________________________ Recruiter’s Name ________________________________________________ Recruiter’s Membership ID ________________________________________________ Recruiter’s Chapter Number Looking to meet others in the federal community and participate in NARFE at a local level? Call 800-627-3394 to learn about a NARFE chapter in your area.

Or, if known, add Chapter # _________________________

NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties without your express permission.

NARFE’s Dues Withholding Program What is dues withholding?

It is a dues-payment method that gives NARFE members (retirees) the option of having their annual NARFE membership dues deducted from their annuities on a monthly basis.

Advantages • Save 15% off your annual NARFE dues!

• Sign up your spouse and double your savings!

• You’ll never get another dues reminder from us!

• Your monthly payment is affordable and convenient!

• You may cancel your dues withholding at any time!

How does it work?

One-twelfth of your total dues is automatically deducted from your monthly annuity. Your monthly deduction is determined by the following formula: (NARFE dues ÷ 12) + (Chapter dues - if applicable ÷ 12) = Total Monthly Deduction How do I sign up?

It takes 60-90 days to process your application. Once the process is complete, you will receive a special membership card distinguishing you as a NARFE dues-withholding member.

To learn more about dues withholding, call 800-627-3394.

Retirees, spouses of retirees and annuitant survivors are eligible for dues withholding.

NARFE Dues Withholding Application for Retirees YES. I want to enroll in NARFE’s Dues Withholding Program (Annual NARFE dues of $34 and, if applicable, Chapter dues of record to be withheld annually.)

Social Security Number (9-digit number)

– Mr.

Mrs.

Civil Service Annuity Number

– Miss

C S

Ms.

–

–

–

(Include prefix, CSA or CSF) (Include any applicable suffix)

Full Name ______________________________________

NARFE MEMBERSHIP INFORMATION

Street Address __________________________________

NARFE Membership ID ____________________________________

Apt./Unit _______________________________________

NARFE Chapter # (If applicable) _______________________________

City _________________________ State _____ ZIP _____ Phone (__________) ______________________________ Email __________________________________________ Date of Birth _________ /_________ / ____________________ dd

mm

yyyy

YES. I Also Authorize My (NARFE Member) Spouse’s Dues To Be Withheld From My Annuity. (Additional annual dues of $34 and, if applicable, chapter dues to be withheld annually.)

If YES, enter spouse’s information below.

Spouse’s Name ___________________________________________ ________________________________________________________ Spouse’s Membership ID ___________________________________

AUTHORIZATION (Withholding will begin in 60-90 days). No payment should be forwarded with application.

I authorize the United States Office of Personnel Management to make appropriate deductions from my annuity payments, not to exceed the amount certified by the National Active and Retired Federal Employees Association as the amount of dues for which I am annually obligated, in accordance with elections I made above, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I made above: Please allow 60-90 days for processing.

I understand that this authorization shall be valid until NARFE receives and processes my written notice of cancellation in accordance with its agreement with the Office of Personnel Management and that any disputes regarding this authorization shall be a matter between NARFE and myself. I hold the Office of Personnel Management harmless for any erroneous allotment deduction made pursuant to this authorization. ___________________________________________________________________________

______________________________

Signature of Annuitant or Survivor-Annuitant

Date

Dues payments and gifts or contributions to NARFE are not deductible as charitable contributions for federal income tax purposes.

MAIL THIS FORM TO: NARFE, ATTN: Member Records, 606 N. Washington St., Alexandria, VA 22314-1914 www.narfe.org 800-627-3394 rr@narfe.org Do not send money with this form

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Member Perks

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

Whether you are planning your next vacation or planning for retirement, members can save money on everyday purchases, thanks to our Affinity Partners.

It’s just one more way we’re able to say “thank you” for being a NARFE member.

INSURANCE

GEICO 800-368-2734 www.geico.com/fed/narfe GEICO offers a special discount opportunity for NARFE members. To find out how much you could save, visit our website or call today and mention that you are a NARFE member. Have your current coverage information available in order to secure a comparable quote. Your completed quote will help benefit NARFE! For complete terms and conditions, visit www.narfe.org/memberperks.

Wheaton World Wide Moving 800-248-7960 narfe@wvlcorp.com At Wheaton, we know interstate relocating is much more than trucks and boxes. Moving is not simply an address change. It’s a life change. With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation.

We offer you, as a NARFE member, benefits to help you have a positive interstate relocation experience. Call today and mention you are a NARFE member to start the moving process.

PRODUCTS

NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed and administered by Mercer Consumer, exclusively for NARFE members: senior age whole life, term life, Medicare supplements, hospital income plan, short-term recovery insurance, pet insurance, accidental death and dismemberment, cancer care, enhanced dental insurance and longterm care.

MOVING SERVICES

Bekins Van Lines 800-456-6832 narfe@bekins.com All NARFE members will receive contracted pricing for all interstate shipments. This will apply to packing, transportation and full-value coverage against damages. Please mention you are a NARFE member.

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Omaha Steaks 800-228-9055 www.omahasteaks.com/ NARFE

brand-name products are within reach.

As members of NARFE, you can buy today and pay over time through payroll or annuity allotment. Choose from the latest computers, appliances, vacation packages and more. Never worry about hidden fees, credit checks or interest.

Pay over 6 or 12 months, and you’re done. Save 5% with code NARFEVIP.

TELECOMMUNICATIONS

Verizon FiOS www.narfe.org/memberperks NARFE members can save up to $10 a month on a new qualifying Triple Play bundle with Verizon Fios Internet, TV and home phone service – savings of up to $120 per year. This exclusive onlineonly savings is only available to new Verizon customers or those upgrading to the Triple Play Package.

TRAVEL

Since 1917, Omaha Steaks has been delivering customers the finest gourmet steaks, seafood, poultry, pork, sides and desserts. Omaha Steaks make memorable gifts for any holiday, or you can enjoy a gourmet meal right at home.

NARFE members can enjoy FREE SHIPPING on select combos and an additional 10% DISCOUNT at checkout! If calling, use promo code YTZ.

NEW

Purchasing Power 866-670-3479 purchasingpower.com/NARFE With Purchasing Power, thousands of

Alamo 800-462-5266 www.alamo.com Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call or visit our website today and reference Contract ID 262544.

Avis Car Rental 800-633-3469 www.avis.com Avis Car Rental is one of the world’s best-known car rental brands with ap-

proximately 5,500 locations in more than 165 countries. Avis has a long history of innovation in the car rental industry and is one of the world’s top brands for customer loyalty. Call or book your reservation now at Avis.com using the NARFE AWD number A701900.

Budget Car Rental 800-218-7992 www.budget.com Budget Car rental was founded in 1958 for the “budget-minded” renter. Today, with approximately 3,500 locations around the world, Budget is a leading rental car supplier now offering discounts to members of NARFE. Call or book your reservation now at Budget. com using the NARFE BCD number D871500.

Choice Hotels International 800-258-2847 www.choicehotels.com With 6,200 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer.

Advance reservations required through phone number or website above; cannot be redeemed at individual hotels.

Choice Hotels brands are: Comfort Inn, Comfort Suites, Sleep Inn, MainStay Suites and more.

Wyndham Hotel Group 877-670-7088 NARFE members receive up to 20% off the “Best Available Rate” at participating locations. Call and give the agent your special discount ID number, 8000002694, at time of booking to receive discount. Call to reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts, Days Inn, Ramada Inn, Microtel Inns and Suites and more. Advance reservations required through phone number above; cannot be redeemed at individual hotels.

Wyndham NEW Extra Holidays 800-428-1932 www.extraholidays.com Excellent service and the finest comforts are standards you can always rely on with Wyndham Extra Holidays. With more spacious floor plans than a regular hotel, you can enjoy a One-, Two- or Three-Bedroom suite with separate living areas and partial or fully equipped kitchens. Please use promo code 8000002694 when calling or booking online.

WELLNESS

HearUSA www.hearusa.com/narfe

NEW

The Nation’s Most Trusted Name in

National 800-CAR-RENT www.nationalcarrental.com You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation, call National Car Rental at 1-800-CARRENT® and reference Contract ID 5282909. For complete terms and conditions, visit www.narfe.org/ memberperks.

Hearing Care. Choose from 250+ hearing aids from 11 manufacturers with $0 co-pay for many plans. Wireless. Bluetooth. Smartphone compatible. Nearly invisible. Risk-free 60-Day trial. Free follow-up care. Free 3-Year warranty. Call 1-855-845-2706 to see if you qualify for 2 FREE hearing aids.

Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-ofthe-art ultrasound technology in your neighborhood. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website.

NEW

Sunrise Senior Living www.SunriseSeniorLiving.com Sunrise Senior Living, a leading provider of high-quality, individualized, senior living services, offers NARFE members a special, discounted rate. Mention code: NARFE-discount during your visit and receive a one-time 5% off of suite/room rates at any of Sunrise’s U.S. communities for one year. For a complete list of Sunrise locations, visit www.SunriseSeniorLiving.com. For a complete list of any restrictions, visit www.narfe.org/ memberperks.

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

Check out Member Perks in the NARFE website for more details!

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The Way We Worked

NEW ERA IN FOOD SAFETY In this 1908 photo, a food and drug inspector examines a candy factory and advises workers, owners and managers on how to comply with a new federal law, the Pure Food and Drug Act. Congress passed the law in 1906 to protect consumers from spoiled, rotten, poisoned and adulterated foods. The act set standards for factories and authorized inspections to ensure compliance. Before the act, factory conditions were often unsanitary and unsafe. Today, the Food and Drug Administration not only protects the country’s food supply, but also consumer products such as cosmetics, medical devices and more.

PHOTO from the records of the Food and Drug Administration, 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 http://shfg.org.

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DID YOU KNOW? Upton Sinclair’s 1906 novel The Jungle helped pressure a reluctant Congress to pass the historic Pure Food and Drug Act. The novel’s depictions of filthy conditions inside Chicago’s packing plants so appalled Americans that meat sales plummeted. Congress had long resisted oversight of food production. The meat crisis, however, along with pressure from President Theodore Roosevelt, finally led to food safety reforms, according to the Food and Drug Administration’s website at www.fda.gov.

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