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RETIREMENT LIFE

SEPTEMBER 2012, Volume 88, Number 9

LEGISLATIVE REPORT 8 12 16

Phased Retirement Option Signed Into Law

18 19 20

Civics 101: Be Mindful of New Voter ID Laws

OPM Makes a Dent in Retirement Backlog Spotlight on the Field: Interview With Sandy Cagle, Washington Federation President

Entries Are Coming In for Advocacy Competition NARFE Legislation Tracker

COVER STORY 22

40 43 45 46 50

Cover design by Jim Richards

The Fed Next Door – Where We Live and Work. In words and charts, here is a snapshot of the Federal Family.

COLUMNS 6 Message From the National President

34 36 38 44

Managing Money Live Well Alzheimer’s Update Report From the Regions

SPECIAL SECTION 28 Checklist: How to Find Your Best Place to Retire

DEPARTMENTS

NARFE Resources

Questions & Answers

NARFE-PAC Coupon . . . . . . . .21

Federal Benefits

Alzheimer’s Coupon . . . . . . . . .38

NARFE News

Life MembershipApplication . . .44

Out & About For the Record: TSP Investments, COLA Chart

‘Like’ us on Facebook (NARFE National Headquarters) visit us online at www.narfe.org

Silver Circle Coupon . . . . . . . . .45 MembershipApplication . . . . . .47 NARFE Member Perks . . . . . . .48

Follow us on Twitter (@narfehq)

NATIONAL OFFICERS

Here’s How to Contact NARFE ...

JOSEPH A. BEAUDOIN, President; natpres@narfe.org PAUL H. CAREW, Vice President; natvp@narfe.org ELAINE C. HUGHES, Secretary; natsec@narfe.org RICHARD G. THISSEN, Treasurer; nattreas@narfe.org

If you want to: • Join NARFE Call (toll-free):

800-627-3394 or 800-456-8410 Or go to: www.narfe.org

If you want to: • Change your address • Check your membership status • Find out dues owed • Provide a death notification Call (toll-free):

800-456-8410 Email:

memberrecords@narfe.org If you want to: • Add your email address to your record (to receive GEMS email messages, the Legislative Hotline and NARFE NewsWatch): Call (toll-free):

800-456-8410 Email:

memberrecords@narfe.org

REGIONAL VICE PRESIDENTS REGION I Augie Stratoti (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 603-889-1073 Email: augrs@juno.com REGION II Ronald P. Bowers (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-308-0420 Email: narferbowers@msn.com REGION III Donald Stewart (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) Tel: 305-442-6388 Email: dejs33149@aol.com REGION IV Paul E. Johnson (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 812-306-5137 Email: pejohnson@tds.net REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 620-241-1131 Email: ek617@att.net

REGION VI Jerome S. Smith (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-534-5849 Email: retiredjer@aol.com REGION VII Betty Lucero-Turner (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 719-583-0910 Email: blturner2311@aol.com REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) Tel: 707-644-7565 Email: hlz17@aol.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) Tel: 360-692-9741 Email: lannyjean@comcast.net REGION X William F. Martin (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 540-872-3345 Email: narfe2065@hughes.net

E-mail: memberrecords@narfeorg

If you want to:

• Hear the Legislative Hotline Call (toll-free):

877-217-8234 If you want to: • Get materials to recruit members: Call (toll-free):

800-627-3394 Email:

rr@narfe.org

For any other NARFE matter: Call NARFE Headquarters

703-838-7760 Email: hq@narfe.org Fax:703-838-7785 Write: NARFE 606 N. Washington St. Alexandria,VA 22314

NARFE MAGAZINE Volume 88,Number 9 Editor, Margaret M. Carter Assistant Editor, Donna J. St. John Editorial Administrator, Toni Vallario Graphic Designer, Beth Bedard Contributing Designers, Charlene Gridley, Jim Richards Editorial Board: Joseph A. Beaudoin, Paul H. Carew, Elaine C. Hughes, Richard G. Thissen Editorial Office: NARFE, Attn: NARFE magazine, 606 North Washington St., Alexandria, VA 22314-1914; Phone: 703-838-7760; Fax: 703-838-7781; Email: rl@narfe.org Advertising Sales: Warren Berger, Media People Inc., 122 East 42nd Street, Suite 725, New York, NY 10168; 212-779-7172, ext. 223; 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 866-504-7300 or go to www.nfbnewsline.org.

On Tape: Issues of NARFE magazine are also available on cassette through the National Library Service for the Blind and Physically Handicapped. To find out about availability in your area, call 800-424-8567 and ask for the Reference Section.

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

NARFE (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St.,Alexandria,VA 22314. Periodicals postage paid at Alexandria,VA, and additional mailing offices. Members: Annual dues includes subscription. Non-member subscription rate $45. Postmaster: Send address change to: NARFE Attn:Member Records,NARFE 606 N.Washington St.,Alexandria,VA 22314.To ensure prompt delivery,members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken.

All submissions become the property of NARFE. Copyright © 2012, 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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A Message From the National President

Something Different

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he September column in an even-numbered year is always difficult for a national officer running for re-election. By the time you read this, the convention will be about to begin or, depending on your location, already under way. With this in mind, I’d like to do something different this month. I’ve asked Charles “Chuck” Timanus, a longtime NARFE employee who retired at the end of June, to use my monthly column as his valedictory message to NARFE members and to share some thoughts on his time at NARFE as well as the future of NARFE. But before I turn this over to Chuck, let me thank him publicly for his service to NARFE members. He has been a good friend and trusted colleague, and I wish him well in his retirement.

I’VE ASKED longtime NARFE employee ChuckTimanus to use my column as his valedictory message.

Joseph A. Beaudoin natpres@narfe.org

Looking Back and Looking Forward

F

irst, let me thank Joe for allowing me this opportunity. I was hired as Public Relations Director for NARFE in February 1998, and I enjoyed every minute of it. I feel I made a lot of friends among the chapter, federation and national officers, as well as among the general membership.

I have had the privilege of working with lots of great people. That is no doubt the most significant thing I take with me. What I enjoyed the most were the visits to chapter, federation and national meetings. It was always a treat to get to meet the dedicated people who make NARFE work.

We’ve seen some significant changes in the time I’ve been here. We did away with the stipulation that a person had to work for Uncle Sam for a minimum of five years to be a NARFE member. We added “Active” to our name back in 2004, after years of hearing friends and colleagues tell us, “Don’t bother me yet. I’m not retired!”

Some of the changes have not met with universal approval. I’m speaking, of course, of the creation of electronic – or online – chapters. This “radical” decision by the National Executive Board in November 2010 was an effort to make NARFE membership more attractive to younger people, those just retired or those still working for the federal government. In the year and a half since this decision, two electronic chapters have been created: 2363, the national e-

6

chapter; and 2364, the Florida Federation e-chapter. The national chapter has become the largest chapter in NARFE, with more than 4,000 members. The fact that both chapters have grown proves that NARFE can attract new, younger members if we offer them options. Both 2363 and 2364 are duly chartered NARFE chapters. Everyone who joins one of these chapters is a NARFE member and a chapter member.

There are some differences: First, at this time, neither chapter charges chapter dues – an option open to every NARFE chapter (right now, two other chapters don’t have chapter dues); and second, electronic chapter members do not attend regular meetings. Any information they get from NARFE is delivered via email, with the exception of NARFE magazine. They are encouraged to send messages to their elected representatives and to meet with them. National echapter 2363 has offered to forward federation newsletters to members residing in specific states so they can keep up with state legislative issues.

As I leave NARFE, I am cautiously optimistic about our future. We have been bequeathed a great legacy from past generations of members. I hope that we will find what works to attract those who will come after us. From my 14-plus years of working with you, I know we will. Thanks to all of you for having made this a fun, interesting and rewarding job.

– ChuckTimanus SEPTEMBER 2012 | NARFE

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LEGISLATIVE REPORT

PhasedRetirementOption Cuts to Pay, SignedInto Law BenefitsAvoided

F

ederal employees will soon have the option to ease into

In Legislation

retirement toward the end of their careers by switching

to part-time service while earning a partial annuity,

thanks to legislation signed into law on July 6 by Presi-

dent Obama.

The “phased retirement” option passed as part of a broad measure that freezes federally subsidized student loan interest rates for another year, reauthorizes the government flood insurance program and extends federal transportation funding for two more years. Although some congressional leaders had proposed using increased retirement contributions by federal employees or lower retirement annu-

ities for future federal employees to offset the costs of those measures, federal employees were spared from those measures in the final bill.

PHASED RETIREMENT With the permission of their agency, retirement-eligible federal employees will be able to take advantage of the newly authorized flexibility as soon as implementing regulations, to be issued

■ September 30 is the final day

of the federal government’s fiscal year, so Congress has until then to pass 12 appropriations bills to set spending for the new fiscal year. If Congress does not, it will need to pass a continuing resolution (CR) to establish temporary spending to avoid a government shutdown.

Since FY1955, Congress has passed all of the appropriations bills by the deadline only once (FY 1977) without the use of CRs.

Official White House Photo by David Lienemann

■ The House and Senate will be

NARFE President Joseph A. Beaudoin attended a meeting at the White House July 16 to discuss issues affecting seniors. Above, Vice President Joe Biden briefs the gathering. The meeting highlighted how budget cuts, especially to Medicare and Medicaid, would affect older Americans.

8

in recess September 3-7, a continuation of their August recess and to celebrate Labor Day. The Senate will remain in session during the rest of September, while the House will be in recess September 17-18 and September 24-28.

LEGISLATIVE HOTLINE Toll-free! (24 Hours): 877-217-8234 Legislative Action Center: www.narfe.org SEPTEMBER 2012 | NARFE

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Under the new law, current, retirement-eligible federal employees will be allowed to reduce their hours to between 20 and 80 percent of their full-time schedule. The “phased retiree” will receive part-time pay and a partial annuity proportional to his or her work hours. For example, if an employee whose full-time schedule is 40 hours per week phased down to 20 hours per week, the employee would receive 50 percent of his or her previous salary and 50 percent of the annuity he or she had earned up to that point.

As part of the deal, the phased retiree will be required to spend at least 20 percent of his or her time mentoring other employees. Upon full retirement, the phased retirees will receive their full annuities, with a prorated increase for the time they worked as a phased retiree. (See related story, p. 43.)

“Federal employees will now be able to cut back on their hours but not fully retire if they are not ready. Not only is this good news for experienced federal workers, but the government as a whole also will benefit from retaining these valuable workers to help with transitions,” commented NARFE President Joseph A. Beaudoin.

OPM Director John Berry also hailed passage of the bill.

“I want to thank Congress for acting on the administration’s phased retirement proposal,” Berry said. “Phased retirement is an important off-ramp to help retain critical skills and knowledge when some of our most valued employees near retirement. As we roll out the Recent Graduates Program and recruit a diverse range of new talent into federal service, phased retirement also will help agencies and employees share the knowledge and experience of experts nearing retirement with incoming employees.

The legislative provision requires the phasing employee to spend no less than 20 percent of his or her time on mentorship. This will help maintain a continuous high level of service and expertise in the federal government. We will work swiftly with agencies to implement this critical new tool.”

Are You in the Loop?

To get timely Legislative Alerts and the weekly Legislative Hotline, make sure NARFE has your email address. Call 800-456-8410 or go to www.narfe.org.

10

STORY HIGHLIGHTS ■ Legislation passed by Congress and signed into law

■ ■ ■ ■

July 6 by President Obama will allow federal employees the option of “phasing” into retirement by switching to part-time service while earning a partial annuity.

NARFE supported the measure.

Employees can work between 20 and 80 percent of their full-time schedule.

They must spend at least 20 percent of their time mentoring other employees.

The Office of Personnel Management will issue implementing regulations.

From the initial reactions, everyday federal employees are praising the new option as well. As reported in The Washington Post, U.S. Navy employee Joe Rahall called phased retirement “a great idea.” Said Rahall: “It is a win-win. The individual can prepare for retirement at his own pace. The agency benefits because they can still tap into the knowledge that the individual has. This will help agencies from making mistakes that they solved years ago, but there is nobody left to remember that solution. Additionally, the agency can have the part-time retiree mentor the new people coming into the agency. The agency has a vacancy and can hire a person to do those duties while the retiree mentors him.”

CUTS TO FEDERAL RETIREMENT PROGRAMS AVOIDED In addition to gaining phased retirement, federal employees did not have their pay and benefits reduced to pay for expenditures for transportation projects, national flood insurance and an extension of lower student loan interest rates. Such cuts had been threatened as the bill made its way through Congress. “The president’s signature on this bill is a victory for federal employees, who do not have to lose pay or benefits to pay for the legislation,” said Beaudoin.

“The outpouring of messages from retired and active federal employees over the last month has helped send Congress one simple message: Federal employees and retirees do not deserve to be the piggybank for all legislation moving through Congress,” Beaudoin added.

The final compromise, enacted as P.L. 112-141, garnered bipartisan support in both the House and Senate.

By John Hatton, Legislative Representative SEPTEMBER 2012 | NARFE

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Legislative Report

OPM Makes a Dent in Retirement Backlog;Budget Could Create Snag

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or new annuitants, freshly separated from a career of government service, any delay in receipt of their annuity payments is anything but good news. Despite the agency’s best efforts, tens of thousands of retirement applications await processing at the Office of Personnel Management (OPM). But the backlog dam is starting to show cracks.

Figures released over the summer suggest that OPM’s plans to address the backlog are on track. By June, actual claims came in under estimated levels, and the number of claims processed exceeded OPM’s projections. All told, the total claims backlog is down 21 percent from the beginning of 2012. In January, the backlog was more than 61,000 claims.

The progress comes on the heels of a meeting in March between NARFE President Joseph A. Beaudoin, NARFE staff, and OPM Director John Berry and members of the OPM team working on resolving the backlog. Berry had issued the invitation to NARFE to apologize for the delay and commit to solving the years-long problem. Beaudoin testified in February before a Senate subcommittee about the delays.

Said Berry of the backlog situation: “At OPM, we aim to honor retirees with timely and accurate service. In January,

STORY HIGHLIGHTS ■ Progress reports suggest that the Office of

Personnel Management (OPM) is starting to make a dent in the retirement claims processing backlog.

■ NARFE testified about the delays earlier in the year before a Senate subcommittee.

■ OPM Director John Berry says the agency is ahead of schedule in reducing the logjam.

■ Sen. Mark Warner, who sponsored an amendment requiring OPM to report monthly on progress, says there is more work to be done.

on the front lines as quickly as we can.”

OPM administers benefits for 2.5 million federal retirees and processes about 100,000 new claims annually. Berry has said eliminating the backlog is his highest priority in 2012.

It takes an average of just over five months to process a claim, but many retirees report waiting much longer to receive their full annuity payments.

OPM has long blamed individual agencies for delays, as well as longstanding problems with processing, including assembling the full federal career history for civilian employees who may have changed jobs during their careers. Ensuring a full and complete employment and contribution history is critical to adjudicating annuity applications. Processing retirement claims, particularly disability claims, can be complex, especially since OPM relies heavily on other federal agencies to provide retirees’ information, including the amount of their annuity. The agency uses more than 500 procedures, laws and regulations to process retirement applications.

Fed-friendly lawmakers have put increasing pressure on OPM to address the backlog. Sen. Mark Warner, D-VA, highlighted the urgency of the situation by offering an amendment to address the issue, which was adopted as

“IN THE FIRST QUARTER alone, we processed nearly 50 percent more cases than the first quarter last year – well ahead of schedule.”

–OPM Director John Berry John Berry

we set a goal to eliminate the current backlog in 18 months so that 90 percent of retirees receive their full annuity payments within 60 days of retirement by July 2013. In the first quarter alone, we processed nearly 50 percent more cases than the first quarter last year – well ahead of schedule. As we speak, we are training new employees and getting them

12

SEPTEMBER 2012 | NARFE

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Legislative Report part of the Senate’s bill on postal reform. Under the Warner amendment, OPM is required to produce monthly progress reports on the retirement backlog for postal retirees.

Said Warner in July: “OPM has made some progress since January, but there’s still work to be done. OPM’s Sen. Mark Warner projections indicate that the changes they have implemented will go into effect this month and will allow them to process an average of 26 percent more cases per month moving forward. OPM has also started providing limited agency-specific information regarding incomplete paperwork. However, many unanswered questions remain. I look forward to reading their report and will continue to push OPM for better results.” (To view the monthly processing update data, go to www.opm.gov/ retire and click on “Retirement Processing Status” under “Quick Links.”)

The progress to date could be short-lived, however.

“

“OPM HAS MADE SOME PROGRESS since January, but there’s still work to be done.”

–Sen. Mark Warner, D-VA With the recent enactment of legislation permitting “phased retirement” for civilian government employees, OPM could be faced with a glut of “two-fers,” having to determine both a partial annuity and a full pension for “phased retirees.” The potential also exists for further retirement processing delays in response to haggling over the Fiscal Year 2013 Budget, which could result in acrossthe-board cuts in salaries and expenses at every federal agency. In that event, retirement processing improvements may be left on the cutting-room floor.

By Alan Lopatin, Legislative Counsel

”

There is no guarantee to your federal pension based on the economics we face today in this country.

—Sen. Tom Coburn, R-OK

Who is fighting for your benefits in Congress?

NARFE Is

In today’s economic climate, federal retirement programs are a target for Congress. NARFE is the only association dedicated solely to protecting and preserving the benefits of America’s active and retired federal employees and their families.

Keep your membership active! NARFE is here for you.

National Active and Retired Federal Employees Association

14

SEPTEMBER 2012 | NARFE

Legislative Report SPOTLIGHT ON THE FIELD

An Interview With Sandy Cagle, Washington Federation President

B

etween now and Election Day, November 6, NARFE is asking all members to focus on grassroots activism and contact their members of Congress and candidates for Congress. To learn how NARFE members are leading the charge to protect federal employee and retiree benefits, NARFE Legislative Director Julie Tagen interviewed Washington Federation President Sandy Cagle about what NARFE members are doing in her state.

What is the most pressing issue for Washington state NARFE members right now?

The constant focus by Congress on reducing pay and benefits of federal employees, proposed reductions for retirees/annuitants and the prospects for future federal cuts.

We must focus more of our energy on efforts to recruit active employees, as they will be the most affected for now.

What has you most concerned about the 112th Congress?

The inability of members of Congress to work together to find an equitable resolution to the deficit/budget issues to avoid sequestration, which will impact federal employees and retirees even further than the damage already inflicted.

How are NARFE members in Washington state responding to NARFE’s calls to action via the “Protect America’s Heartbeat” (PAH) campaign?

We alert members by newsletters or emails about calls to action. We encourage them, at every opportunity, to use the Legislative Action Center or NARFE’s toll-free number to Capitol Hill. As a result, we are one of the top 10 federations in recorded call responses. Members also call directly to local congressional offices instead of using the toll-free line, which has expanded our contacts. We provide PAH updates/reminders in each issue of our federation newsletter and do presentations at our district workshops and chapter meetings.

What are you doing to increase advocacy in the state?

We established good relationships with congressional staff

16

Washington Federation President Sandy Cagle, right, and other NARFE leaders are seen through the glass door of Sen. Patty Murray’s office.

One of NARFE’s leading activists, Cagle shares some thoughts on congressional advocacy.

and work hard to maintain those relationships, as they are our most valuable asset. We make every effort through faceto-face meetings to inform both incumbents and candidates about NARFE’s issues. The federation newsletter provides ideas, suggestions, templates and success stories for use in chapter newsletters. We push writing letters to the editor in local newpapers and have had several published.

What have you personally done to advocate for NARFE? I strive to have a strong legislative emphasis at all state conventions. We have speakers from NARFE Headquarters and professional advocacy organizations, who bring a different perspective and enthusiasm about how to be an advocate. I identify people in the federation and chapters with personal expertise and good contacts with congressional members to deliver our message.

If you could talk to every Washington state NARFE member one-on-one, what would you ask them to do on behalf of NARFE? Recruit at least one new member, become involved either as a chapter/federation officer or on a committee, and keep in personal contact with your members of Congress on a regular basis. If you’ve never been an advocate before, now is the time to do it. Become the voice of NARFE to your friends, contacts and community. ■ SEPTEMBER 2012 | NARFE

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Join YMT on this unique cultural and educational program to legendary Cuba. From Miami, you’ll fly to Havana to begin your exploration of the rich heritage of this island nation. Highlights include five nights in Havana, two nights in Cayo Santa Maria, Old Havana, Revolucion Plaza, the Che Guevara Museum, Ernest Hemingway’s farm, and visits to the scenic towns of Remedios and Cienfuegos. Witness Cuba’s picturesque rural life and agriculture in Vinales and go to a tobacco farm to see the growing, drying and cigar rolling process of Cuba’s most famous export. Learn about authentic daily Cuban life and the island’s history and culture through meaningful interactions with the local people throughout the itinerary. Musical and artistic performances along with interactive painting and dance lessons will give you unique insight into the colorful island culture. This fully-escorted program includes eight nights hotel accommodations, round-trip airfare from Miami to Cuba, a full-time schedule of activities per the itinerary, a professionally-trained Cuban guide and 15 meals. US law requires that all participants of this program adhere to the full time schedule of people-to-people activities. *Airfare to/from Miami is extra.

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Legislative Report CIVICS 101:

THE INFORMED CITIZEN

Be Mindful of NewVoter ID Laws

C

hanges in state voter identification laws requiring would-be voters to show a government-issued photo identification card could disenfranchise some NARFE members. These requirements, some quite new and detailed below, will require some older voters, who have never missed an opportunity to vote, to take steps now to obtain newly required identification.

STORY HIGHLIGHTS ■ Potentially onerous state photo ID laws could be

rude shock to older voters.

■ A growing number of states have photo ID laws.

■ Prepare by using early or absentee voting or

obtaining required photo ID. ■ Poll workers are always needed: long hours, low pay, priceless democracy.

NCSL RESEARCH

EARLY VOTING OPTIONS

The National Conference of State Legislatures (NCSL) regularly updates its map of state voter identification requirements. NCSL groups the 50 states into four categories, and reassigns states as legislation and litigation bring changes. The four categories are: 1. No Voter ID Law (20 states and the District of Columbia) 2. Non-Photo ID (19 states) 3. Photo ID (six states) 4. Strict Photo ID (five states).

Listed below are the states currently in categories 3 and 4, the two “restrictive” categories.

Twenty states, listed in the July issue (pp. 14-15) of NARFE magazine, have early voting windows prior to Election Day. These states open a limited number of polling places in the weeks prior to primary and general elections.

Early and absentee balloting are features of a growing share of elections. Of the 90 million people who turned out to vote in 2010, 16 percent voted a domestic absentee ballot, and 8 percent voted early (prior to Election Day). Early voting and absentee balloting share a common characteristic: less stringent voter identification requirements and/or an age exception. Early voting may also alert voters – without a driver’s license or other photo ID – of new requirements for voting while there is still time to make other arrangements, such as locating a passport or obtaining from their state a photo ID. Several states have increased the availability of new forms of photo ID – some without any cost.

MORE RESTRICTIVE STATES The six “Photo ID” states are: Florida, Hawaii, Idaho, Louisiana, Michigan and South Dakota. The five “Strict Photo ID” states are: Georgia, Indiana, Kansas, Pennsylvania and Tennessee. Legal challenges by the Justice Department to changes in Texas and South Carolina, among others, increase the uncertainty in several states.

UNCERTAINTY Alabama will become a Photo ID state in 2014 if its new law receives preclearance from the Justice Department under Section 5 of the Voting Rights Act. Mississippi, South Carolina and Texas have new Strict Photo ID laws, which may take effect before November if they receive preclearance under Section 5 of the Voting Rights Act. New Hampshire passed (June 27) a new voter ID law; however, it will not take effect until it receives preclearance. Finally, Wisconsin’s newly enacted Strict Photo ID law was held unconstitutional (March 12). It could take effect before November if that ruling is reversed by a higher court.

18

ELECTION JUDGE/POLL WORKERS NEEDED Even while some states are changing or enacting voter ID laws, all are seeking poll workers. Ironically, the very demographic – seniors – facing disenfranchisement due to new voter ID laws is the best group at staffing the polls to enfranchise all voters. According to the Election Assistance Commission, in 2010, states operated 110,941 polling places. States relied on 769,795 poll workers on Election Day. The largest number of poll workers are between ages 61 and 70.

WEBSITE RESOURCES: • Election Assistance Commission: www.eac.gov; • National Conference of State Legislatures: www.ncsl. org/legislatures-elections/elections/voter-id.aspx; • Federal Voting Assistance Program: www.fvap.gov.

By Christopher Farrell, Legislative Representative SEPTEMBER 2012 | NARFE

Entries Are Coming In for Advocacy Competition The “Advocacy in Action” competition is already showing a great response. In an effort to encourage and thank grassroots activists, NARFE is holding a competition to reward the federations that make the greatest efforts to contact members of Congress.

The competition covers two periods: January 1-June 30, 2012, and July 1-December 31, 2012. Points are awarded for several types of grass-roots activity, including sending emails to Congress, submitting op-ed articles to local newspapers, writing letters, and meeting with members of Congress and candidates. The federation with the highest number of points during each period will win a free registration to the 2013 NARFE Legislative Training Conference.

Make sure your activity is counted. Please provide information to the NARFE Legislative staff at advocacyin action@narfe.org. More details are available online at www.narfe.org.

Rep. Sam Farr, right, spoke at a recent meeting of Chapter 579 in Monterey, CA. From left: Dennis Dyrud, chapter president; Lennie Lund, District V vp; and Farr.

Officers of Tri-Valley Chapter 39, representing NARFE members in Livermore, Pleasanton and Dublin, CA, and surrounding areas, met with Rep. Jerry McNerney. From left: John Bluck, 1st vp; Anastasios Piliotis, president; McNerney; Suzanne Emberson, 2nd vp; and Vivian Nathanson, treasurer.

Members from several chapters in California’s 3rd Congressional District met recently with Rep. Dan Lundgren. From left: Ken Boffin, Chapter 1680, Elkhorn; Mary Jo Smith, District VI vp; Lundgren; Dan Mahoney, chapter 1596, American River; Hubert Lechner, Chapter 46, Sacramento; and Al Shaffer, Chapter 1833, Roseville.

NARFE | SEPTEMBER 2012

19

The NARFE LEGISLATION TRACKER is your monthly guide to the congressional legislation that NARFE is keeping an eye on. Check back each issue for updates.

NARFE LegislationTracker ISSUE

Bill Number / Name / Sponsor

What Bill Would Do

RETIREMENT H.R. 3813: Securing Annuities for Requires federal employees to pay CONTRIBUTIONS/ Federal Employees Act / Rep. 1.5% more toward their retirement, CALCULATION requires new federal employees to Dennis A. Ross, R-FL contribute 4% to their retirement, bases retirement calculations on the highest five years of service instead of the current high three, and eliminates the Federal Employees Retirement System Annuity Supplement

Latest Congressional Action/s Approved by Committee on Oversight and Government Reform 2/7/2012 (Likely to be considered by full House)

H.Con Res. 112: Establishing the Requires federal employees to pay 5% more toward their retirement Budget for the United States Government for Fiscal Year 2013 / Rep. Paul D. Ryan, R-WI

Passed by House 3/23/2012 Failed in Senate 5/16/2012

H.R. 5652: Sequester Replacement Reconciliation Act / Rep. Paul D. Ryan, R-WI

Requires federal employees to pay 5% more toward their retirement

Passed by House 5/10/2012

FEDERAL PAY FREEZE

H.R. 3835: To Extend the Pay Limitation for Members of Congress and Federal Employees / Rep. Sean P. Duffy, R-WI

Extends the federal pay freeze for one more year (until Dec. 31, 2013)

Passed by House 2/1/2012 (Likely to be part of deficitreduction talks)

PHASED RETIREMENT

H.R. 4363: Federal Employee Phased Retirement Act / Rep. Darrell Issa, R-CA

Allows federal employees to phase into retirement by working part time and collecting an annuity

S. 1813: Moving Ahead for Progress in the 21st Century / Sen. Barbara Boxer, D-CA

Allows federal employees to phase into retirement by working part time and collecting an annuity

Passed as part of highway bill and student loan interest rate extension compromise* Signed into law (P.L. 112-141) 7/6/2012 (See stories, pp. 8-10 and 43)

CHANGES TO THE S. 1789: 21st Century Postal FEDERAL Service Act / Sen. Joseph I. EMPLOYEES’ Lieberman, I-CT COMPENSATION ACT (FECA) H.R. 2465 : Federal Workers’ Compensation Modernization and Improvement Act / Rep. John Kline, R-MN

20

Passed by Senate 4/25/2012 Reduces benefits by 25% at retirement age for federal workers disabled by a work-related injury or illness; eliminates 8.33% augmented compensation for dependents Streamlines claims process, ensures Passed by House 11/29/2011 injured workers receive adequate compensation, enhances program efficiency, improves program integrity * Bold indicates new status and modernizes benefits from last issue SEPTEMBER 2012 | NARFE

NARFE LegislationTracker ISSUE

What Bill Would Do

Bill Number / Name / Sponsor

Latest Congressional Action/s

WORKFORCE REDUCTIONS

Various bills (H.R. 235, H.R. 408/S. 178, H.R. 657, S. 1476, H.R. 2114, H.R. 3029/ S. 1611, H.R. 3662/S. 2065)

Decreases the size of the federal workforce by various percentages (usually 5-15%)

Referred to various committees (Likely to be part of deficitreduction talks)

REPEAL OF GPO AND WEP

H.R. 1332: Social Security Fairness Act / Rep. Howard P. “Buck� McKeon, R-CA

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

Referred to Subcommittee on Social Security 4/7/2011

S. 2010: Social Security Fairness Act / Sen. John Kerry, D-MA

Referred to Committee on Finance 12/16/2011 (Unlikely to be considered)

CHANGES TO THE FEHBP

S. 2196: Congressional Health Care for Seniors Act / Sen. Rand Paul, R-KY

Phases out Medicare; requires participants to enroll in the Federal Employees Health Benefits Program (FEHBP)

Referred to Committee on Finance 3/15/2012 (Unlikely to be considered)

POLITICAL ACTIVITIES

H.R. 4152 Hatch Act Modernization Act / Rep. Elijah E. Cummings, D-MD

Eliminates the prohibition against state and local employees seeking partisan elective federal office and revises penalties for Hatch Act violations to allow penalties other than termination of employment

Referred to Committee on Oversight and Government Reform 3/7/2012

S. 2170 Hatch Act Modernization Act / Sen. Daniel K. Akaka, D-HI

NARFE-PAC Contribution Form I would like to make a monthly credit card contribution to NARFE-PAC of:

$10/month $25/month

Monthly contributions qualify you to receive a NARFE-PAC Sustainer lapel pin and the red, white and blue NARFE umbrella.

Other: ________/month (minimum of $10) -orI would like to make a one-time contribution of: $100 (qualifies for Gold 2011-2012 NARFE-PAC lapel pin and NARFE umbrella) $50 (qualifies for Silver 2011-2012 NARFE-PAC lapel pin) $20 (qualifies for Basic 2011-2012 NARFE-PAC lapel pin, pictured here) Other: ________

I do not want to receive any gifts for my contribution marked above.

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 nonpartisan political action fund. NARFE-PAC contributions are not deductible for federal income tax purposes.

NARFE | SEPTEMBER 2012

Approved by the Homeland Security and Governmental Affairs Committee 6/27/2012

Payment Information Name: _____________________________________________ Member ID# (if available): ___________________________ Address: ___________________________________________ __________________________________________________

Check or money order enclosed -or-

Credit Card (below; required for monthly contribution)

Card Type: MasterCard Visa Discover AMEX Card #: ____________________________________________ Expiration Date: ____ / ____ Name on Card: _____________________________________ Signature:__________________________________________ Date: __________________ Please send check, money order or credit card information to: Attn: Budget & Finance / NARFE / 606 N. Washington St. Alexandria, VA 22314-1914

21

THE FED

By Jessica Klement, Communications and Legislative Representative

NWE X T D O O R HERE WE LIVE AND WORK

W

e’ve heard it over and over. “Federal employees are nothing but bureaucrats living in

Washington, DC.” As current or former federal employees, we know that this state-

ment is false. Only 15 percent of the roughly 2.5 million federal and postal employees

live and work in the Washington, DC, metro area. That may come as a big surprise to

the numerous politicians who seem to think all feds reside in Washington.

Despite claims to the contrary, the total number of federal employees (including postal workers) has remained relatively level over the last decade.

The number of federal employees is slightly higher than it was about four years ago, and nearly 90 percent of those new employees were hired into four agencies – the Department of Defense, the Department of Homeland Security, the Department of Veterans Affairs and the Department of Justice – the very agencies most politicians want to bolster. The federal workforce is currently about 500,000 employees fewer than a decade ago.

Recently, however, governments overall – local, state and federal – have suffered steep losses. In June, the factchecking division of The Washington Post reported: “The latest figures from the Bureau of Labor Statistics show that nearly 610,000 government jobs NARFE | SEPTEMBER 2012

have been lost since January 2009, with much of the loss coming since 2010, as the stimulus funds have begun to run out. Just in the past few months, about 30,000 government jobs have been lost.”

The proportion of federal employees to the general population has declined greatly. During the Kennedy administration in 1962, there was one federal employee for every 75 American citizens. Today, there is one federal employee for every 140 Americans.

With the American population over 311 million, the federal workforce makes up .8 percent of the population, or less than 1 percent.

companying this article provide a good snapshot of these figures, and some may be surprising even to you.

For instance: • California is home to the largest number of active federal employees, with nearly 173,000 civil servants.

• Virginia is a close second, with nearly 148,000 feds.

• California also clocks in at number one with the largest number of federal annuitants – 213,045.

• Florida comes in second with almost 166,000 federal annuitants.

• Delaware has the fewest number of civil servants — 3,504 employees.

• Vermont has the fewest number of federal annuitants — 4,415.

WHERE FEDS LIVE Where do these 2.5 million federal and postal employees live and work, if most of them are outside the greater Washington, DC, area? The charts ac-

WHERE FEDS WORK The Department of Defense (DOD) employs the greatest number of federal civil servants. With more than

23

THE FEDERAL FAMILY THE FEDERAL FAMILY CivilianAnnuitants, Employees&&Postal PostalEmployees Employees Civilian Annuitants, Employees Total Annuitants on Roll* Alabama 58,137 Alaska 7,633 Arizona 53,440 Arkansas 24,999 California 213,045 Colorado 48,263 Connecticut 14,801 Delaware 9,142 DC 43,637 Florida 165,659 Georgia 82,335 Guam 2,612 Hawaii 24,601 Idaho 14,255 Illinois 67,813 Indiana 36,280 Iowa 20,662 Kansas 24,308 Kentucky 33,049 Louisiana 26,559 Maine 13,803 Maryland 155,447 Massachusetts 42,973 Michigan 43,221 Minnesota 28,263 Mississippi 25,221 Missouri 53,868 Montana 12,598 Nebraska 13,338 Nevada 21,992 New Hampshire 12,178 New Jersey 54,154 New Mexico 27,660 NewYork 95,618 North Carolina 72,192 North Dakota 6,294 Ohio 74,316 Oklahoma 48,193 Oregon 32,990 Pennsylvania 107,332 Puerto Rico/VI 11,894 Rhode Island 8,347 South Carolina 43,342 South Dakota 10,031 Tennessee 45,734 Texas 165,562 Utah 34,531 Vermont 4,415 Virginia 140,993 Washington 65,247 WestVirginia 17,447 Wisconsin 26,587 Wyoming 5,642 Other Foreign 26,878 TOTAL 2,520,531 * Office of Personnel Management (OPM), 2011

24

Monthly Annuities ($000s)*

Employee Annuitants*

132,343 17,703 118,209 48,292 477,670 114,224 31,732 23,622 130,848 381,770 182,403 4,261 58,675 31,468 150,634 74,620 41,163 51,442 64,606 54,804 27,673 486,333 92,034 93,289 59,348 51,690 115,147 28,475 26,890 50,471 27,406 128,925 62,169 194,432 163,338 12,240 168,667 98,818 75,143 231,162 19,900 17,279 92,550 20,387 98,443 358,894 76,677 9,427 415,002 150,931 38,579 53,701 12,096

43,888 6,302 41,975 18,906 160,485 38,344 10,868 7,261 35,405 126,840 63,206 1,768 17,863 11,500 52,575 27,947 15,764 18,886 25,319 20,460 10,441 124,581 30,984 34,140 21,828 19,218 42,206 10,310 10,141 17,699 9,252 39,204 22,016 70,920 56,287 4,860 56,786 36,313 25,920 80,758 8,945 5,746 33,074 7,999 35,335 127,136 26,990 3,435 110,470 50,690 14,041 20,779 4,606

14,249 1,331 11,465 6,093 52,560 9,919 3,933 1,881 8,232 38,819 19,129 844 6,738 2,755 15,238 8,333 4,898 5,422 7,730 6,099 3,362 30,866 11,989 9,081 6,435 6,003 11,662 2,288 3,197 4,293 2,926 14,950 5,644 24,698 15,905 1,434 17,530 11,880 7,070 26,574 2,949 2,601 10,268 2,032 10,399 39,426 7,541 980 30,523 14,557 3,406 5,808 1,036

36,668 5,784,673

16,098 1,934,770

10,780 585,761

** OPM FedScope,September 2011

Survivor Annuitants*

Active Federal Employees** 43,249 13,655 43,212 14,454 172,873 41,746 8,854 3,504 166,280 90,179 80,639 2,906 25,628 10,145 50,658 24,751 9,269 18,144 26,031 21,654 11,122 137,025 29,376 30,416 18,359 19,413 37,326 11,904 10,933 11,912 4,570 26,798 27,320 67,931 45,155 6,555 53,522 39,840 21,870 69,034 12,080 7,302 22,309 8,832 28,720 142,801 30,588 4,661 147,787 58,683 16,304 16,205 6,659 1551 37,168 2,089,862

U.S.Postal Service Employees*** 8,861 1,581 9,456 5,569 66,597 10,876 8,599 1,865 5,243 34,643 17,839 110 2,345 2,610 30,858 12,390 7,774 7,258 8,152 8,202 3,540 13,278 17,198 22,050 12,905 4,876 15,565 2,200 4,698 4,260 3,264 23,220 3,220 45,975 18,634 1,839 24,684 6,984 6,927 30,598 2,804 2,654 7,422 2,169 12,460 41,367 4,811 1,735 16,647 12,118 3,957 12,328 1,120 19 638,354

***Postal Rate Commission, April 2012,full- and part-time employees

SEPTEMBER 2012 | NARFE

Federal Family Components The chart on the facing page is a snapshot in time that updates counts that appeared in the February 2011 issue of NARFE magazine. The first column shows federal annuitants; column two, their gross monthly annuities. In the third and fourth columns, the annuitant count is separated into its two components – employee annuitants and survivor annuitants. Columns five and six show federal em774,000 civilian employees, DOD is home to more than 30 percent of all federal employees. The U.S. Postal Service, with roughly 574,000 full-time employees, is next, employing 22 percent of the federal workforce. The Department of Veterans Affairs is third, employing more than 316,000 feds.

Agencies that serve a national security function account for two-thirds of the entire federal workforce.

In terms of the Cabinet-level agen-

ployee counts and U.S. Postal Service employees. Both employee categories are based on place of employment, not residence. Unlike our 2011 chart, the USPS counts include both full- and part-time employees. Use these numbers in communications with elected officials, but do not misrepresent our potential membership as NARFE’s actual membership. For more info, email leg@narfe.org.

cies, the Department of Education employs the smallest number of civil servants, with about 4,600 employees. The Department of Housing and Urban Development has the second-lowest number of federal employees, less than 10,000. One more fun fact for you – two independent agencies have only one employee. Do you know what they are?

(See the answer at the end of the article.)

The facts are very clear, and the numbers don’t lie. Federal employees

live and work in every state and in every congressional district across the country. When meeting with members of Congress, make sure you have the facts for their state with you. They might be surprised by what you have to share with them! ■ ANSWER: The Ronald Reagan Centennial Commission and the Northern Border Regional Commission.

Where Federal Employees Work The chart below covers the 15 Cabinet-level agencies, the 21 large independent agencies (those with more than 1,000 employees), including the Social Security Administration (67,136) and the Office of Personnel Management (6,272); the 32 medium independent agencies (100-999 employees); the 55 small independent agencies (fewer than 100 employees); and full-time employees of the U.S. Postal Service.

Source: Office of Personnel Management, as of September 2011

Department of Agriculture 105,126 Department of Commerce 47,626 Department of Defense 774,244 Department of Justice 116,273 Department of Labor 16,298 Department of Energy 16,381 Department of Education 4,620 Department of Health and Human Services 85,642 Department of Homeland Security 198,242 Department of Housing and Urban Development 9,758 Department of the Interior 77,225 Department of State 12,595 Department of Transportation 57,721 Department of the Treasury 106,403 Department of Veterans Affairs 316,480 Large Independent Agencies 171,855 Medium Independent Agencies 12,199 Small Independent Agencies 1,601 U.S. Postal Service 574,000

NARFE | SEPTEMBER 2012

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By John Brady

CHECKLIST:

How to Find Your Best Place to Retire

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etirement is an amazing gift. The bonds that have tied us down for so long are cut – most of us are free to live anywhere and pursue any activity we want. The best way to seize this opportunity is to plan for it, starting with the question of where to live in retirement. Do you want to stay in the town where you live now, or do warmer, more recreation-accommodating climes beckon? Should you live near your children or grandchildren? How about moving to a more efficient, affordable and senior-friendly home? These are a few of the important questions that need to be answered.

Most people make a default decision about where to live; they don’t put in the effort to think about what is important to them, so inertia or randomness takes over. The good news is that it’s relatively simple to get on the path to a smart decision about where to retire.

To help you get started with this process, we have developed this simple checklist. It is meant to be filled out and shared with your spouse, significant other, family or friends. You might think of other questions to ask and issues to consider when you fill it out – be sure to write those down, too.

Illustrations by Amanda Carter

Have you written down your most important retirement priorities?

Y____ N____ There are many possible priorities, but your personal ones are most important. Some possibilities include: warm winters, proximity to grandchildren, access to a favorite recreational activity, college town, city, active adult community with nonstop activities and people to meet, near the beach or mountains, etc.

Write your top three retirement location priorities here: — — — — — —— — — — — —— —— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —— — — — — —— —— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —— — — — — —— —— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Have you shared your priority list with significant other, family or close friends?

Y____ N____ You might be surprised to learn that your better half yearns for the stimulation of city lights, whereas your preference involves a challenging golf course. There are ways to resolve these mismatches, but only if you start working on them early.

Will one place be OK, or would you rather be a snow bird and live in two locations?

Y____ N____ Living in two different places can give you more options about climate, recreation and activities. It is also more complicated and expensive, although there are creative options.

Have you developed a list of the places where you think you might like to live?

Y____ N____ There are many ways to develop your list. When you travel on business or vacation, ask yourself what retirement might be like in that region. Go online to some retirement websites to get more ideas.

Talk with your friends, or even better – visit them!

Have you taken trips to possible retirement locations?

Y____ N____ By the time you are in your late 50s, it’s time for some site scouting. Start with a list of places you want to see; then keep narrowing it down and adding to it. Take a vacation, long weekend, or extend a family or business trip to get started. Get a feel for the place by staying in a small hotel or B & B. If you are interested in an active adult community, most of the newer ones offer “Stay & Play” or “Discovery” packages where you can stay there at a discounted rate. There’s no better way to see if an active adult or 55+ community is for you. Make notes on a spreadsheet about what does and doesn’t appeal to you about the places you visit (take photos, too).

When you visit a city or community, these are a few of the questions you should be asking and taking notes on: What are the taxes on retirees; will your Social Security or federal annuity be taxed?

— — — — — —— — — — — —— ——— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —— Is there access to cultural resources – libraries, theaters, movies, restaurants, lifelong learning classes?

— — — — — —— — — — — —— ——— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —— What is the average age in the community, and where did the people come from?

— — — — — —— — — — — —— ——— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —— NARFE | SEPTEMBER 2012

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CHECKLIST: How to Find Your Best Place to Retire

Concerning medical resources, is there access to specialists; is the hospital just for acute care or a teaching hospital?

—— — — — — — — — — —— —— — — — — —— — — — —— — — — — — — — — — — — — — — — — — — — —— —— — — — — — — — — —— —— — — — — —— — — — —— — — — — — — — — — — — — — — — — — — — —— Regarding the political and religious makeup of the community, will you fit in with your opinions or feel out of place?

—— — — — — — — — — —— —— — — — — —— — — — —— — — — — — — — — — — — — — — — — — — — —— —— — — — — — — — — —— —— — — — — —— — — — —— — — — — — — — — — — — — — — — — — — — —— What is the transportation situation? Can you walk, or do you have to drive everywhere; how about airports, public transit?

—— — — — — — — — — —— —— — — — — —— — — — —— — — — — — — — — — — — — — — — — — — — —— —— — — — — — — — — —— —— — — — — —— — — — —— — — — — — — — — — — — — — — — — — — — —— What are median real estate prices and trends? Will you be able to sell your current home and have money in the bank, or will you have to trade up?

—— — — — — — — — — —— —— — — — — —— — — — —— — — — — — — — — — — — — — — — — — — — —— —— — — — — — — — — —— —— — — — — —— — — — —— — — — — — — — — — — — — — — — — — — — ——

Once you have made your top choices, have you developed a pros and cons list?

Y____ N____ You will be pleasantly surprised by how effective this exercise can be, since one pro or con often becomes the decisive factor.

Have you decided to rent or buy?

Rent____ Buy____ In our opinion, the correct answer is rent first. We know too many people who rushed into a purchase decision based on a single visit only to find out that they were too far from their grandchildren, they didn’t like the homeowners association rules, or they were too far from stores and things to do.

Have you done your due diligence, particularly if considering an active adult or 55+ community?

Y____ N____ Private communities and condos have pitfalls as well as charms. To avoid unpleasant surprises, you must see their financial statements, know their rules (e.g., how many pets you can have, and how much they can weigh), and know what the foreclosure and delinquency rates are. Find out who owns the community facilities, and what the fees and assessments are.

Have you considered that retirement comes in stages?

Y____ N____ Chances are you will retire in your mid-60s, when you might

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CHECKLIST: How to Find Your Best Place to Retire

be looking forward to activities like golf, travel, gardening, projects around the house or cruising. But in another 20 years, your retirement activities, and your health, might be very different. Our point: Keep the long term in mind when you make your retirement decision. If you decide to retire to a place that is incompatible with old age, you might regret it later.

An active community for those 60 or better. Southern California’s HUB for places to go and things to do – all less than 2 hours from AFVW. PLUS… • Beautiful year-round weather • Freedom from housework,home maintenance, and property taxes • Camaraderie of friends Mou nta in

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John Brady started www.Top retirements.com in 2007 as the place for baby boomers to find their best places to retire. The site offers objective reviews of more than 800 towns and almost 1,800 active adult communities, in addition to news stories, feature articles and forums on all aspects of retirement. Topretirements offers a free newsletter that profiles retirement communities and offers helpful advice. Previously, Brady wrote “So Many Great Retirement Towns, So Hard to Choose,” which ran in the September 2010 issue of NARFE magazine.

12:16 PM

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Good luck on your adventure.

The more time and thought you put into the process, the better the success. And, if you are looking for ideas, try the Retirement Ranger from Topretirements.com. This free tool asks you 10 questions and then gives you a customized list of places

you might want to consider.

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NARFE | SEPTEMBER 2012

33

Pag

Managing Money

Income From Investments: Part II

By Mark A. Keen, CFP®

L

ast month’s column posed the question, how much can you expect to receive from your investments each year? To illustrate why this question is so difficult to answer, the column also provided a glimpse of how stock and bond market volatility, along with the sequence of returns, can wreak havoc on a retiree’s distribution portfolio. For almost 20 years, advisers and academics have been studying and debating the answers to this question.

In 1994, William Bengen published the first in a series of papers pioneering the concept of sustainable withdrawal rates. Bengen’s original work defined a sustainable withdrawal rate as the amount that can be initially withdrawn from an investment portfolio, increased each subsequent year to account for inflation, and sustained for a minimum of 30 years. While 30 years may sound like a long time, it’s actually quite reasonable. For example, the average age of retirement over recent years has been 62.

For a married, nonsmoking couple, the average joint life expectancy is approximately age 92. In other words, there is a 50 percent chance that one of the two will be living well into their 90s and will be drawing on their investments for 30 years.

Bengen’s research, based on the historical performance of large company stocks, bonds and inflation from 1926 to the time of his study, concluded that the sustainable withdrawal rate was about 4 percent for a 30-year horizon. By adding additional asset classes, Bengen’s subsequent papers concluded that the 30-year sustainable withdrawal rate was 4.5 percent – although it’s still commonly referred to as the 4 percent rule.

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The sustainable withdrawal rate is the initial rate from which all other distributions are based. In subsequent years, distributions are adjusted for inflation to maintain purchasing power.

For example, assuming a $100,000 retirement portfolio and the 4.5 percent sustainable withdrawal rate, the first year’s distribution would be $4,500. If inflation ran 3.5 percent the first year,

ited historical data for U.S. stocks, bonds and inflation going back only to 1926.

The United States experienced considerable expansion during this period, and stock market returns were generally favorable.

Only time will tell who is right. But as with any generalization, or rule of thumb, individual circumstances must be considered when creating a strategy.

IF YOUR withdrawal rate creeps up to a level deemed not sustainable, revisit your strategy and take steps to protect your nest egg. the second year’s distribution would be adjusted to $4,658. In theory, this inflation adjustment would continue each and every year for the 30-year period.

For years, Bengen’s work has provided the framework for taking withdrawals from retirement portfolios. But given today’s environment, can retirees continue to rely on this rule of thumb?

This is a question that has continually been debated over the years. There have been several studies in support of the 4 percent rule and many others that dispute the rule. In the late 90s, the dissidents said 4 percent was too low. But now, after 10 years of stagnant stock market returns, historically low interest rates and global economic uncertainty, critics claim the 4 percent rule is too optimistic. Some have suggested the sustainable withdrawal rate is as low as 2 percent or less. Critics point out that the 4 percent rule was conceived using lim-

For example, how much of the investment income is going to cover fixed, necessary living expenses? This is important because, if the investment income is used largely for discretionary expenses such as travel and hobbies, then a higher withdrawal rate during the early, active retirement years may be appropriate. In the event that market conditions aren’t favorable, the retiree has the flexibility to forego inflation adjustments or cut back the distribution.

Also consider what you would like to leave your heirs. It’s important to note that the 4 percent rule isn’t designed to maintain principal – it’s designed to maintain your income while keeping control of your assets. So, if you’re following the 4 percent rule, and market conditions aren’t favorable, it’s likely that your investment portfolio would decline over time, reducing the estate you leave behind.

SEPTEMBER 2012 | NARFE

Another factor to consider is your strategy for financing long-term care. If you don’t have long-term care insurance, your withdrawal rate needs to reflect the fact that you need to protect your nest egg for the eventual possibility of covering these expenses.

Because the markets are dynamic, your financial strategy should be flexible as well. For example, if your withdrawal rate creeps up to a level deemed not sustainable for your remaining time horizon, you should revisit your strategy and take steps to protect your nest egg. One option is to put a portion of your investments into an immediate annuity, which provides a lifetime income stream. You’ll be giving up control of those assets, but the increased income from the annuity could allow you to reduce the amount you withdraw

from your remaining investments.

Another option for creating extra income and reducing the withdrawal rate would be to tap your home’s equity with a reverse mortgage. Similar to the immediate annuity, the income from a reversed mortgage would allow you to reduce your withdrawal rate on your investment portfolio.

Since hindsight is 20/20, despite all of the time, effort and energy put into the research of sustainable withdrawal rates, the end result will likely never be known ahead of time. That’s why it’s important to remain flexible and have contingency plans in order to adapt to the ever-changing markets.

Mark A. Keen, CFP®, is president and owner of Bennett Financial Advisors, 3600 Chain Bridge Rd., Fairfax,VA, and

‘Like’ Us On

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Go to the “NARFE National Headquarters” page on Facebook and click “Like” to begin receiving the latest posts on your news feed.

NARFE Headquarters’ Facebook page does not accept Friend requests.We just need you to Like us!

an investment adviser representative and registered principal of The Strategic Financial Alliance, Inc. (SFA).

Securities and advisory services are offered through SFA. Email: mkeen@tributaryadvisors.com.

After you retire, who will answer your benefits questions?

NARFE Will When you leave government service, you also leave your human resources department behind. NARFE acts as a “Personnel Office” for federal retirees, providing FREE benefits counseling for members.

This year alone, NARFE has assisted thousands of members with federal benefits questions.

Keep your membership active! NARFE is here for you.

National Active and Retired Federal Employees Association NARFE | SEPTEMBER 2012

35

LiveWell

Coping With Kidney Failure

By Marilyn S. Radke, M.D.

H

ealthy kidneys keep the right balance of chemicals in the blood (sodium, phosphorus, potassium) that are needed for good health. Your kidneys filter waste and excess water from the blood, which leave the body as urine. If your kidneys fail, waste products build up in the blood and harm the body. A person with kidney failure must either begin kidney dialysis or get a kidney transplant to live. Hemodialysis is the most common treatment for permanent kidney failure.

In hemodialysis, your blood flows, a few ounces at a time, through a special filter (dialyzer) that functions as an artificial kidney to clean your blood. The dialyzer is a canister connected to the hemodialysis machine that monitors blood flow and removes wastes from the dialyzer. During treatment, your blood flows through tubes into the dialyzer, which removes wastes, extra salt and extra fluid to help control your blood pressure, and maintain the proper balance of potassium and sodium in your blood. The clean blood travels through another set of tubes back into your body.

The same dialyzer may be used safely more than once for your treatments as long as it is cleaned before each use and is never used for anyone but you. Before each treatment, make sure the dialyzer is labeled with your

36

name and has been cleaned, disinfected and tested to assure it is working.

Before starting hemodialysis, a site on your body from which your blood is carried to the dialyzer and back (vascular access) must be created. Before each hemodialysis treatment, needles are placed into the vascular access to draw out and return the blood. There are several types of access: • Fistula – an artery is connected to a vein in your forearm. In several weeks, the increased blood flow makes the vein grow larger and stronger so it can be used for repeated needle insertions. This is the preferred type of permanent access.

• Graft – a synthetic tube is used to connect an artery to a vein. This permanent access can be used sooner after placement than a fistula but has a greater risk of clotting and infection.

• Catheter – a small, soft tube is inserted into a vein in your neck, chest or leg near the groin as a temporary access if your kidney disease progressed quickly, and there was no time to get a permanent access. Catheters that are needed for more than three weeks are placed under the skin to increase comfort and reduce complications.

Vascular access problems (infection, blockage from clotting and poor blood flow) are the most common reasons for hospitalization among people on he-

modialysis. Rapid changes in the body’s water and chemical balance during treatment commonly cause muscle cramps and a sudden drop in blood pressure, which results in weakness, dizziness or nausea.

Hemodialysis treatments follow a strict schedule. Most patients go to a special clinic (dialysis center) three times a week for three to five or more hours each visit. Patients may need to choose a morning, afternoon or evening shift, depending on the times available at the dialysis center. During hemodialysis, patients can read, write, sleep, talk or watch TV. Some dialysis centers allow patients to use a laptop computer or cell phone or have visitors.

The federal government will pay for a maximum of three hemodialysis sessions a week.

Medicare maintains a website, Dialysis Facility Compare, at www. medicare.gov/dialysis, which provides

IF YOUR kidneys fail,waste products build up in the blood and harm the body.

To Learn More

F

or more information, write to the National Kidney and Urologic Diseases Information Clearinghouse, 3 Information Way, Bethesda, MD 20892-3580; or call 800-891-5390;or visit the website at www.kidney.niddk.nih.gov.

SEPTEMBER 2012 | NARFE

Co N nt o ra ct Marilyn S. Radke, M.D., is board certified in preventive medicine and practices in Atlanta, GA.

Recycle NARFE “I caught the NARFE magazine while in the YMCA last week for my daily exercise. To be honest, I took the magazine home with me and read it thoroughly. I’ll be joining NARFE shortly!”

>

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NARFE | SEPTEMBER 2012

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All my friends have new cell phones. They carry them around with them all day, like mini computers, with little tiny keyboards and hundreds of programs which are supposed to make their life easier. Trouble is… my friends can’t use them. The keypads are too small, the displays are hard to see and the phones are so complicated that my friends end up borrowing my Jitterbug when they need to make a call. I don’t mind… I just got a new phone too… the new Jitterbug Plus. Now I have all the things I loved about my Jitterbug phone along with some great new features that make it even better!

GreatCall® created the Jitterbug with one thing in mind – to offer people a cell phone that’s easy to see and hear, and is simple to use and affordable. Now, they’ve made the cell phone experience even better with the Jitterbug Plus. It features a lightweight, comfortable design with a backlit keypad and big, legible numbers. There is even a dial tone so you know the phone is ready to use. You can also increase the volume with one touch and the speaker’s been improved so you get great audio quality and can hear every word. The battery has been improved too– it’s one of the longest lasting on the market– so you won’t have to charge it as often. The phone comes to you with your account already set up and is easy to activate.

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information and resources for patients and family members who want to learn more about chronic kidney disease and dialysis. The site also lists all U.S. dialysis centers with quality ratings for each.

Hemodialysis is usually done by patient-care technicians who are supervised by nurses. A dietitian is available to provide advice on proper diet.

Monthly blood tests are done to check whether dialysis treatments are removing enough wastes.

Sometimes, patients perform their own hemodialysis treatments at home with the help of a trained partner.

Home dialysis allows more flexibility in the dialysis schedule; for example, two to three hours of treatment done five to seven days a week, or treatments done three to six nights per week during sleep. The dialysis center provides the machine and four to six weeks of training for patients and partners, plus 24-hour support if there is a question or problem.

If you need hemodialysis, work with your nephrologist (kidney doctor) and dialysis team to achieve the best possible results so you can lead a full, active life.

Want a cell phone that’s just a phone?

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IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. All rate plans and services require the purchase of a Jitterbug phone and a one-time set up fee of $35. Coverage and service is not available everywhere.

Other charges and restrictions may apply. Screen images simulated. There are no additional fees to call Jitterbug’s 24-hour U.S. Based Customer Service. However, for calls to an Operator in which a service is completed, minutes will be deducted from your monthly balance equal to the length of the call and any call connected by the Operator, plus an additional 5 minutes. Monthly rate plans do not include government taxes or assessment surcharges. Prices and fees subject to change. 1We will refund the full price of the Jitterbug phone if it is returned within 30 days of purchase in like-new condition. We will also refund your first monthly service charge if you have less than 30 minutes of usage. If you have more than 30 minutes of usage, a per minute charge of 35 cents will apply for each minute over 30 minutes. The activation fee and shipping charges are not refundable. Jitterbug is a registered trademark of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics America, Inc. and/or its related entities. Copyright © 2012 GreatCall, Inc. Copyright © 2012 by firstSTREET for Boomers and Beyond, Inc. All rights reserved.

37

Alzheimer’s Update

Alzheimer’s Awareness Month

By Jane Rodgers

N

ovember is National Alzheimer’s Disease Awareness Month, first designated by President Reagan in 1983. At that time, fewer than two million people had the disease.

Today, that number has reached nearly 5.4 million. This annual observance provides an excellent opportunity for NARFE chapters to have special programs at chapter meetings or activities in their community.

In my last column, I wrote about the National Alzheimer’s Project Act, which called for creation of a National Alzheimer’s Plan. Thanks to all of you who signed the Alzheimer’s Association’s online petition urging President Obama to issue a strong plan to help those afNARFE members contributed for Alzheimer’s research:

fected by the disease and their families.

I’m pleased to report that the plan was released in the spring. Harry Johns, president and CEO of the Alzheimer’s Association, said: “This is a tremendous moment for our cause: For the first time in our history, the United States has a strong, coordinated, nationwide plan to address the Alzheimer’s epidemic. The plan supports the full spectrum of what those living with Alzheimer’s need every day: more education, improved care, community support and effective treatment. It also commits our nation to essential innovative research with the goal of identifying therapies to prevent and effectively treat this devastating and fatal disease by 2025.

“As you know, the Plan is a roadmap, not the end. As we appropriately celebrate this historic moment, we know that we have much work yet to do to transform the trajectory of this disease – and in the days and weeks ahead, we’ll count on you to help us continue to play a leadership role in turning this plan into action. Supported by the

Obama administration’s commitment to funding Alzheimer’s research and awareness announced earlier this year, we’ll work with the Department of Health and Human Services and other organizations and agencies to achieve the full potential of the National Alzheimer’s Plan: more public education, improved care, better community supports and, ultimately, effective treatment to prevent and effectively treat Alzheimer’s. We’ll continue our efforts to ensure that addressing Alzheimer’s becomes an even more central, highly visible national priority. We’ll continue to raise awareness in communities across the country that we can, we must, we will end Alzheimer’s.”

Let me close with a special thanks for your generous contributions to the NARFE-Alzheimer’s Research Fund — we are very close to reaching our $10 million fundraising goal!

Jane Rodgers is chair of the NARFEAlzheimer’s National Committee.

Email: ajrodgers@tds.net.

SUPPORT ALZHEIMER’S RESEARCH

$10 Million Fund

$9,851,349* *Total as of June 30, 2012 100% of all contributed funds go to Alzheimer’s research.

If you have any questions, write to: National Committee Chairman Jane Rodgers, P.O. Box 234 Wadesville, IN 47638-0234 Email: ajrodgers@tds.net

Enclosed is my NARFE-Alzheimer’s contribution: $ ___________.

Every cent that is contributed is used for research.

Please circle:

Mr.

Mrs.

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

38

Ms.

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

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

Miss

Name _______________________________________________________________

❑ MasterCard

❑ Discover

❑ AMEX

Card Number: __________________________________________________________ Expiration Date:________(mm)/_________(yy) 3-Digit Security Code: _________ Name on Card: (print) ___________________________________________________ Signature:_________________________________________ Date: _______________ SEPTEMBER 2012 | NARFE

S P E C I A L R E P O R T:

F O C U S O N B AT H R O O M S A F E T Y

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How to avoid slips and falls while enjoying a bath.

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”Nonfatal Bathroom Injuries Among Persons Aged ≥15 Years– United States, 2008.” Centers for Disease Control and Prevention. 10 June 2011.

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www.safesteptub.com

Questions & Answers NOTE: The following Questions & Answers were compiled by Federal Benefits Service Department staff.

These are real questions received by the Department, based on the members’ personal circumstances.

The answers are not universal and may include information that is relevant to the correspondent’s particular situation. NARFE does not provide legal advice or assistance, does not provide financial planning advice or assistance, and does not provide tax advice or assistance.

For legal, financial planning or tax advice/assistance, NARFE recommends that members contact an attorney, financial planner or certified public accountant/tax adviser.

RETIREES THRIFT SAVINGS PLAN QUESTION: I know that there is a minimum distribution required from my Thrift Savings Plan (TSP) account, based on actuarial life expectancy. I would like to know if the required minimum distribution (RMD) for 2012 would be one year’s total distribution, or would it be monthly based,starting from the month in 2012 in which distribution begins? In other words, if I begin minimum distribution in December 2012, will the amount be an actuarial one-month’s payout,or will it be an entire year’s distribution? If the latter, it would make more sense to take the distribution as soon as possible.

Will theTSP calculate the RMD if I ask that it be done? Can I specify the monthly payout in any amount, and can I receive the distribution in

40

monthly direct deposits?

If I take more than the RMD in early years, do I get “credit” for that in the sense of being ahead of the RMDs in future years?

satisfies the requirement. If you have concerns or need further clarification, call the TSP at 877-968-3778.

Response: The distribution will cover the amount owed for the entire year if you wait until December 2012 to request the distribution. Taking it earlier does make more sense.

The TSP will calculate the RMD. You can specify monthly payments in any amount, as long as the amount satisfies the RMD for the month, and you can have this amount deposited directly each month into a financial institution of your choice. You can, therefore, make larger withdrawals as long as they exceed the RMD for the month. The TSP recalculates your RMD each year.

If a participant takes more than his or her RMD in a particular tax year, he or she cannot roll the excess forward and apply it to a later year’s requirement. However, the RMD is a very straightforward calculation, based on life expectancy and account balance. So, taking more than is required during one year will reduce the account balance for the next year’s calculation, which will have the effect of reducing subsequent years’ RMDs. Also, if a participant is receiving monthly payments based on a request for a specific dollar amount, and if that amount fails to satisfy his or her RMD for the year, the TSP will issue a supplemental payment at the end of the year to ensure the RMD is satisfied. Thus, if you are happy with the payment amount, there is no need to adjust the dollar amount solely because of the RMD. The TSP will make sure that the supplemental payment

QUESTION: I retired in 1997 under the Civil Service Retirement System (CSRS) with an 18 percent reduction in my annuity due to age. I am now nearly age 62 and want to know if there is a tool I can use to calculate Social Security benefits,and how they are affected under the Government Pension Offset (GPO) andWindfall Elimination Provision (WEP).I am looking for information that will help me decide whether to start drawing Social Security now or wait until I am age 66.

GPO/WEP

Response: The link to a tool on the Social Security Administration (SSA) website that will help you reach a decision is www.socialsecurity.gov/planners/benefit calculators.htm. Most CSRS retirees do not receive any benefit based on their spouse’s work history. The GPO takes two-thirds of your pension and subtracts it from the amount of money you are entitled to receive, based on your husband’s work record.

You are entitled to between 38-50 percent of his Social Security benefit, based on your age when you apply for it.

If you wait until you reach age 66, you would be entitled to 50 percent of his benefit. However, if he predeceases you, you are entitled to 100 percent of his benefit. Of course, you have to choose between your own Social Security benefit and that of your spouse. You can’t have both.

Individuals who are impacted by the WEP usually have 20 years or less of substantial earnings when they paid Social Security taxes on their wages. A good ballpark figure is to take 60 per-

QA &

SEPTEMBER 2012 | NARFE

NARFE SERVICE OFFICERS are available to answer questions and to assist in cent of the benefits that you are told you will receive. This benefit appears on your Social Security Benefit Statement. You may want to make an appointment at your local SSA office and have the SSA representative give you the amount of your entitlement. Then you will have accurate figures and can better decide when you want to apply for the benefit.

MEDICARE PART A QUESTION: How do I sign up for Medicare Part A? Will the Office of Personnel Management (OPM) contact me prior to my 65th birthday,or do I need to contact OPM or some other office? Or am I automatically enrolled and will receive notification?

Response: If you are covered under the Civil Service Retirement System (CSRS) and are not eligible for a Social Security benefit, you need to contact your local Social Security Administration (SSA) office to enroll in Part A. Keep in mind that, if you postpone enrolling in Medicare Part B, you would be charged a 10 percent penalty for each 12 months that you don’t have Part B and could have enrolled. You should discuss Part B during your appointment with the SSA representative.

SURVIVOR BENEFITS QUESTION: I am a federal retiree under the Civil Service Retirement System. I retired from the National Aeronautics and Space Administration in 1993,with more than 30 years of service. I have my spouse as a surviving annuitant, and, therefore, my pension is lower. Should my wife die before I do, is my retirement amount increased? If so,by about how much?

Response: If your spouse predeceases you, then your annuity would increase by the amount that you are paying for survivor benefits. We do not have access NARFE | SEPTEMBER 2012

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

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

to your records, so we can’t provide the specific amount of your payment. You need to contact the Office of Personnel Management (OPM). You can call OPM between 7:30 a.m. and 7:45 p.m. Eastern Time at 888-767-6738. You also can write to the OPM Retirement Operations Center, P.O. Box 45, Boyers, PA 16017-0045.

see if you are eligible for any spousal benefits.

SOCIAL SECURITY

Response: No, it is not. For the past couple of years, ever since the Affordable Care Act was signed into law, a statement has been floating around the Internet very similar to the one you mentioned. The one we have seen said Medicare Part B premiums would be $104.20 in 2012, $120.20 in 2013 and $247.00 in 2014. Obviously, the originator of the message was wrong about the 2012 premiums since they are $99.90 per month in 2012. Even officials at Social Security and Medicare cannot state with authority what the premiums will be years ahead of time.

Medicare Part B premiums are reset every year based on the costs to the program for the current year, and no announcement about the premiums for the new calendar year is made until the fall. When the monthly premiums for the upcoming year are announced, NARFE will share that information with members.

QUESTION: I am age 65 and a retiree under the Civil Service Retirement System (CSRS). My 64-year-old spouse,who never worked for the federal government, has been receiving Social Security disability benefits since 2004. I worked under Social Security from 1963-1975 and from 2005-2007.

In order to take advantage of delayed retirement credits and maximize my benefits,I want to wait until age 70 to begin receiving Social Security benefits, based on my record. Can I apply for spousal Social Security benefits when I reach age 66,my full retirement age,later this year?

Response: CSRS retirees are subject to the Government Pension Offset (GPO).

Most CSRS retirees are not eligible for any benefit based on their spouse’s work record because the GPO provision takes two-thirds of your annuity and subtracts that amount from your spousal benefit.

Here is a link on the Social Security Administration (SSA) website for information on the GPO: www.socialsecurity. gov/pubs/10007.html. Because this decision must be made by the SSA, you should contact your local SSA office to

THE TRUTH ABOUT MEDICARE PREMIUMS QUESTION: I got an email from a friend that claimed that Medicare premiums for 2014 would increase to $247 per month and to pass it on to all seniors.Is this true?

FERS SUPPLEMENT QUESTION:I took an agency-offered early retirement last year as a enrollee in the Federal Employees Retirement System (FERS) and was told 41

Questions & Answers that I would get a supplement when I hit my minimum retirement age (MRA),which for me would be at age 56 in March 2013. Do I have to contact the Office of Personnel Management (OPM) at that time, or does OPM have a program that shows when I should start receiving this additional payment?Will it start automatically?

Since I turn age 56 in March,should the additional payment show up on my April 1 retirement check?

Response: You are correct in that you must wait until you reach your MRA to receive your supplement. You are also correct in that your supplement would begin on April 1, 2013, because you reach your MRA in March 2013. The supplement should be paid automatically.

You should be aware that if you are still working at that time, your FERS Annuity Supplement would be subject to the Social Security Earnings Limitation Test. The earnings limitation for 2012 is $14,640. OPM will offset your supplement by $1 for every $2 you earn in excess of $14,640.

ACTIVE EMPLOYEES FEHBP INTO RETIREMENT QUESTION:I was under the Federal Employees Retirement System (FERS) and met eligibility requirements of 10+ years of service and my minimum retirement age.During that time,I had continuous coverage under the Federal Employees Health Benefits Program (FEHBP). I left federal service and am now working in the private sector.Do I need to return to federal employment in order to get FEHBP coverage in retirement? If I must return to federal service, how long would I have to work to be eligible 42

Make the right decision at the right time.

NARFE offers an online retirement calculator and other financial planning tools for members only. Find out more about this membership benefit at www.narfe.org. to take FEHBP coverage into retirement?

Response: To be eligible for FEHBP coverage as a retiree, you must have separated from service on an immediate retirement or a postponed FERS retirement, and have had continuous FEHBP coverage, either as an enrollee or as a dependent under another’s FEHBP coverage, for the five years preceding retirement or at every opportunity you had to enroll. If you left federal service without retiring on an immediate annuity or a postponed annuity, you are not eligible to have FEHBP coverage later if you apply for retirement benefits.

If you met the five-year requirement when you separated from government service, and you become reemployed and meet the requirements for an immediate retirement, you only need to be enrolled in the FEHBP for your first pay period. You can then retire and keep your FEHBP coverage as a retiree.

REDEPOSITS QUESTION: A friend transferred from one federal agency to another and received a payout of the money he had paid into the retirement fund. He did not reinvest the money in the Civil Service Retirement System for credit.

He changed agencies in 1978, is still working and plans to retire soon.How should he deal with the redeposit?

Response: We assume that he received a lump-sum payment of his retirement

contributions prior to 1979. Therefore, the individual has some options because he is not required to make a redeposit: He may pay the redeposit in full, which would equal the amount of the refund with a 3 percent interest charge; or He would not be required to pay the redeposit but would have his annuity reduced as a result. With this option, the Office of Personnel Management (OPM) uses an actuarial figure based on life expectancy to reduce the annuity. For example, the life expectancy is 20 years, and the employee owes $10,000. If the redeposit is paid, the employee would receive an annuity of $30,000. If the redeposit isn’t paid, the $10,000 deposit amount would be divided by a 20-year life expectancy factor, which would result in a $500-a-year reduction in his annuity.

In this example, he would receive $29,500.

We suggest that the employee request two annuity estimates from his human resources office. One estimate would show what the individual would receive if he makes the redeposit. The second estimate would show what the individual would receive if he doesn’t make the redeposit.

These estimates would give him the information he needs to make a good decision.

The employee may make the redeposit by completing an application for a redeposit (form 2803, “Application to SEPTEMBER 2012 | NARFE

Federal Benefits Make Deposit or Redeposit“) and submitting it to his human resources office. The human resources office would send the application to OPM. OPM would then send him the amount of the redeposit. The employee may make the redeposit in $50 installments directly to OPM and decide when he wants to make a payment. In other words, he may make a payment of $200 one month and wait three months and make a payment of $50.

If the individual is within six months of retirement, he should not apply for the redeposit. OPM would give him an opportunity to repay this amount after he retires. OPM would write the individual a letter when it determines the final annuity and explain the amount of the annuity with and without the deposit. However, the individual has only 30 days from the date of the letter to make the redeposit.

The bottom line is, he should get two annuity estimates that will include the amount of the redeposit, decide if and when he wants to make the redeposit, or decide if he would be better off investing the redeposit amount in other ways.

Note: Regarding the amount of interest charged on a redeposit, for refunded service prior to 1985, the interest rate is locked in at 3 percent. For refunded service after 1984, an individual would pay the variable interest rate, beginning in 1985.

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

NARFE | SEPTEMBER 2012

Phased Retirement: What We Know Now

T

here’s a new service road alongside the highway to federal retirement. This new road allows federal employees to ease down the road into retirement rather than take the express exit off the interstate into retirement.

Signed into law on July 6, Public Law 112-141, “Moving Ahead for Progress in the 21st Century,” includes a provision that creates a way for many federal employees to retire and begin receiving partial annuities while staying with their agencies on a parttime basis. As part of the process, these “phased retirees” would be required to mentor new employees, and continue to provide their expertise and skills in support of their agency’s mission.

While we do not know all of the details on how the new law will be implemented – the Office of Personnel Management (OPM) will develop regulations for implementing the law – here is what we do know now: • With a few exceptions, employees subject to mandatory retirement, such as law enforcement, firefighters, air traffic controllers and all disability retirees, are excluded from eligibility for the phased retirement option.

• Participation in phased retirement is voluntary, and requires the consent of both the employee and his or her agency.

• The individual must be eligible for an immediate annuity and have worked full time for the three years immediately preceding phased retirement.

• Initially, the only part-time schedule that can be offered to a

phased retiree will be 50 percent.

• A phased retirement annuity will be computed by calculating the full annuity and then reduced to the proportion of the part-time service.

• At least 20 percent of the phased retiree’s hours worked must be used for mentoring.

• A phased retiree may not be employed in more than one position but may transfer to another.

• The Federal Employees Retirement System Annuity Supplement will not be paid during the phased retirement period.

• No unused sick leave will be used in the computation of the phased retirement annuity.

• Federal Employees’ Group Life Insurance and Federal Employees Health Benefits Program (FEHBP) will stay with the agency, and the FEHBP government contribution will be the same for the phased retiree as for a full-time employee.

• Phased retirement annuities will not be reduced to provide a survivor benefit. If the phased retirement individual dies during the period of phased retirement, benefits will be paid in the same way as they are for an employee who dies in service.

• If the agency agrees, a phased retiree can return to a full-time position.

The phased annuity would terminate.

OPM will announce when the new phased retirement option becomes available after it has completed final regulations. More details will be available at that time.

By the Federal Benefits Service Department

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Report From the Regions Keep Chapters Active And Energized

By Carol R. Ek Region V Regional Vice President ek617@att.net

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s with many other organizations, NARFE is experiencing the effects of the slow economy as well as a decline in membership. But the Association has been tightening its budget and using new ways to recruit. We also are improving communications with members through the use of new technologies.

Over the past year, I had the opportunity to travel to the seven states in Region V (Iowa,

Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota). In all, NARFE members shared the same concerns: the continuing assault on the benefits of federal employees and retirees, the lack of NARFE members willing to take chapter and federation offices, and declining membership. Each Region V federation is working hard to address these concerns. We held two-day training sessions where officers and chairmen went back to school for some brainstorming sessions to look for ways to help overcome these obstacles.

In my travels, I sometimes hear this statement: “Headquarters is trying to make NARFE a national-only organization.” This is just not true. The founding of eNARFE was done in an attempt to attract a new generation of

NARFE members, and the eNARFE chapters have been very successful.

Some of these eNARFE chapter members probably would not have joined a local chapter no matter how many times they were contacted.

If we are unable to keep our local chapters active and energized, we will not be able to continue operating at the grass-roots level, which is so important to our lobbying. Without chapters, we would not have federations, and then only Headquarters would keep NARFE alive. It should not be the responsibility of just one or two chapter members to sustain the chapters but every NARFE member. Let me congratulate those members who work hard to carry on NARFE’s work. You deserve a big “thank you” for your efforts on behalf of all NARFE members. ■

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

Life Membership Fee Schedule

Membership Information

Contact Information

Ages

(Active NARFE members)

Member Number:_______________________

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

Street Address

Single or Quarterly Payment Installments

Apt./Unit

City/State/ZIP

Email Address

30-39 $1,796 40-50 1,408 (New members) Membership is open to civilians in 1,127 any agency of the federal or D.C. (before Oct. 1, 1987) 51-55 56-60 960 governments eligible for a federal annuity.

61-65 801 Check one: 66-70 653 Retiree Active federal employee 71-75 514 Spouse Former federal employee 76-80 392 Former spouse Survivor 81-90 251 91-100+ 127

Payment Information Single payment

or

$450.25 353.25 283.00 241.25 201.50 164.50 129.75 99.25 64.00 33.00

Quarterly Installments (4 payments)

Life Membership fee amount: $____________ Date of Birth

Recruiter’s ID # (if applicable)

Credit card

Check or money order (payable to NARFE)

Credit Card Info: MasterCard

Discover

Visa

AMEX

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

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

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

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

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SEPTEMBER 2012 | NARFE

NARFE News NARFEDebutsNewWebsiteDesign

A

major redesign of the NARFE website launched August 1. The new design gives the website, www.narfe.org, a new look and greater functionality.

Among the highlights: • The Main Home Page has been streamlined. The page includes links to

NARFE legislative information and resources, news releases and statements.

• The member log-in is prominently displayed under the banner on the Main Home Page. The Members Home Page provides information on federal benefits topics, a listing of what members can do online, a NARFE resource library and

links to member Perks.

• A special link for NARFE officers also appears on the Members Home Page, enabling them to easily access the Online Activities Module and Monthly Online Reports.

Please visit the new site often! ■

Silver Circle Donations Keep Rolling In

S

ilver Circle donations totaled $116,482 as of July 15. Donors from January 16-July 15 are listed below with their chapter numbers.

SILVER CIRCLE

The program offers a way for members to give to NARFE beyond the norm.

Donors of $25 or more are listed in NARFE magazine and receive a Silver

FLORIDA JOHN R. LEDMAN 1137 HAWAII ELISA D. PORTACIO 1657 IDAHO GENEVIEVE E. BOGUSLAWSKI 1025 IOWA JEANETTE K. SCHMITT 0436 MAINE HERBERT W. MARSH 1831 MARYLAND DAVID R. LEATHERY 1372

ARIZONA BARBARA T. PETERSEN 1505 CALIFORNIA LOUIS J. JURUS 0004 SUSAN A. HAMMER 0040 LESLIE J. CHING 0065 BRUCE A. BENNETT 1028 MARGARET C. PETROVICH 1833 DELAWARE DOROTHY L. SINNER 1174

JERRY KERNER 2166 MASSACHUSETTS EDWARD B. HICK 0807 IRMA G.WEAVER 1279 DORIS H.WILSON 1568 MISSOURI WILHELM F. NURNBERG 0991 NEW HAMPSHIRE CAROL A. FRENCH 1693 NEW MEXICO GEORGE M.THOMAS 1411 NEW YORK NORMA ALFORD 0500

Circle pin. Donors of $1,000 or more have their names engraved on the Wall of Fame in the lobby of NARFE Headquarters. ■

JACQUELINE D. RICHARDS 0200 JOSEPH GODFREY 1758 PENNSYLVANIA ROBERT A. RUSSELL 0377 JEAN V. ALEXANDER 1778 DONALD E. BROWN 1797 SOUTH DAKOTA HARLAN L. NIEDERMYER 0810

TENNESSEE BILLY GRANTHAM 0727 TEXAS RALPH NELSON 1191

JOHNNY A. ORTIZ 1345 VIRGINIA WILLIAM SHACKELFORD 0737 WASHINGTON MARY JO MAYNES 0881 WEST VIRGINIA E. JEAN SAMPLES 0174 WISCONSIN VICTOR F. BRULC 0094 KENNETH L. SMITH 0094 OTHER STEVEN GORSKI 2363 MICHAEL DISHON 4044

Silver Circle Contribution Form

Yes!

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

• For a contribution of $25 or more, you will receive a Silver Circle pin, and your name will be listed in NARFE magazine with other contributors.

• For a contribution of $1,000 or more, your name will be placed on the “Wall of Fame” at NARFE Headquarters.

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

Name ____________________________________________________________________ Address ___________________________________________________________________ City ____________________________________ State ___________ ZIP _____________ J My check is enclosed (please make check payable to NARFE Silver Circle) Silver Circle contributions are not deductible for federal income tax purposes.

J Please charge my credit card Card type J Mastercard J Visa J Discover J AMEX J Installment Plan Card # _________________________________________________ Wall of Fame 12-month installment plan Expiration Date_____________________________________________ Name __________________________________________________ Signature ___________________________________________ Date ___________________

Clip this contribution form and mail to: NARFE Silver Circle, NARFE, 606 N. Washington St., Alexandria, VA 22314 NARFE | SEPTEMBER 2012

45

Out & AW bout ith the Chapters Chapter Milestones (LEFT) 60TH CELEBRATION: Members of Chapter 188 in Riverside, CA, recently marked the chapter’s 60th anniversary. Rusty Bailey, third from right, a member of the Riverside City Council, presented a proclamation to Chapter President Lee Lucero. Pictured, from left: James Crandall, chapter net coordinator; Phillip Sanchez, 1st vp; Lucero; Bailey; Gloria DeetsBreyer, treasurer; and Bartley Porter, 2nd vp.

(RIGHT) GOLDEN ANNIVERSARY. Members of Chapter 806 in Trenton,TN, recently celebrated the chapter’s 50th anniversary.

Pictured, from left: John Harris; Mack Stanley, public relations; Pat Stanley, Alzheimer’s chair (holding charter); Larry Henderson, chapter president and Tennessee Federation 1st vp; Betty Hutson (holding cake); William Bronow, secretary-treasurer and editor; Trumon Allmon; and Roy Leach, vice president.

Visit our online photo gallery at www.narfe.org.

Sign in and click on NARFE Publications.

To submit a photo: Email it to rl@narfe.org or send it by postal mail to NARFE Headquarters, ATTN: Out & About.

Recruitment and Retention 2012 In the first six months of 2012, 6,495 new members joined NARFE. – Jacqueline Johnson-Bryant, Recruitment and Retention Assistant REGION I

REGION V Iowa . . . . . . . . . . . . .85 Kansas . . . . . . . . . . .90 Minnesota . . . . . . .121 Missouri . . . . . . . . . .96 Nebraska . . . . . . . . .38 North Dakota . . . . .39 South Dakota . . . . . .45 Total . . . . . . . . .514

REGION IX Alaska . . . . . . . . . . . .42 Idaho . . . . . . . . . . . .33 Montana . . . . . . . . . .30 Oregon . . . . . . . . . . .68 Washington . . . . . .130 Total . . . . . . . . .303

Dist. of Columbia . . .72 Delaware . . . . . . . . .32 Maryland . . . . . . . .481 New Jersey . . . . . .123 Pennsylvania . . . . . .315 Total . . . . . . . .1,023

REGION VIII

REGION X Kentucky . . . . . . . . . 85 North Carolina . . . 145 Tennessee . . . . . . . . . 73 E-Chapter (eNARFE) . 792 Virginia . . . . . . . . . . 549 West Virginia . . . . . . 54 Total . . . . . . . . 1,698

REGION VII

46

Illinois . . . . . . . . . . .162 Indiana . . . . . . . . . . .92 Michigan . . . . . . . . .106 Ohio . . . . . . . . . . . .135 Wisconsin . . . . . . . .92 Total . . . . . . . . .587

REGION II

California . . . . . . . .400 Guam . . . . . . . . . . . . .6 Hawaii . . . . . . . . . . .48 Nevada . . . . . . . . . . .28 Philippines . . . . . . . . .0 Total . . . . . . . . .482

Arizona . . . . . . . . . .84 Colorado . . . . . . . .123 New Mexico . . . . . .52 Utah . . . . . . . . . . . . .22 Wyoming . . . . . . . . .19 Total . . . . . . . . .300

REGION IV

Connecticut . . . . . . .32 Massachusetts . . . . .84 Maine . . . . . . . . . . . .24 New Hampshire . . .28 New York . . . . . . ..186 Rhode Island . . . . . . .11 Vermont . . . . . . . . . .14 Total . . . . . . . . .379

REGION III

REGION VI Arkansas . . . . . . . . . .43 Louisiana . . . . . . . . .45 Oklahoma . . . . . . . .63 Panama . . . . . . . . . . . .0 Texas . . . . . . . . . . .285 Total . . . . . . . . .436

FOREIGN 14

Alabama . . . . . . . . . .97 Florida . . . . . . . . . .307 Georgia . . . . . . . . .201 Mississippi . . . . . . . .55 Puerto Rico . . . . . . .18 South Carolina . . . . .81 Total . . . . . . . . . . .759

SEPTEMBER 2012 | NARFE

Active and Retired Federal Employees ...

JOIN NARFE TODAY!

Learn about our ELECTRO NIC MEMBERSHIP at

The only organization dedicated solely to protecting and eNARFE.org 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 benefit questions.

Who Should Join?

Three Easy Ways To Join 1.

2.

3.

N A R F E M E M B E R S H I P A P P L I C AT I O N

YES. I want to join NARFE.

Please start my individual one-year membership for the first-year dues of $45.

Mr. Mrs. Miss Ms.

Full Name _____________________________________________ Street Address _________________________________________ Apt./Unit______________________________________________ City _________________________ State _____ ZIP ___________ Phone (__________) ____________________________________ Email _________________________________________________ Date of Birth _________ /_________ / ___________________________ dd mm yyyy

CALCULATE YOUR DUES $45.00 x ___________ = ______________ First-Year Dues # Joining Total Dues (First-year dues include national and chapter dues.)

PAYMENT OPTIONS

Check, Money Order or Bill Pay (Payable to NARFE) Bill me (NARFE membership will start when payment is received.)

Charge my: MasterCard VISA Discover American Express

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

Please enroll my spouse for an additional $45.

Spouse’s Full Name _____________________________ Spouse’s Date of Birth _________/_________/ ________ dd mm yyyy 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.

CHAPTER AFFILIATION (If known, otherwise NARFE will enroll you in the chapter closest to your ZIP code.)

Enroll me in Chapter # ______ ______ ______ ______

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___________________________________

Card No. ________________________________________________

Recruiter’s Membership ID ___________________________

Expiration Date _________ /_________ mm yyyy Name on Card ____________________________________________

Recruiter’s Chapter Number__________________________

Signature ________________________________________________

NARFE Member Records 606 N. Washington St. Alexandria, VA 22314-1914

Date ____________________________________________________

MAIL THIS APPLICATION TO

IQA

NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION 606 N. Washington St., Alexandria, VA 22314-1914 www.narfe.org 800-627-3394 rr@narfe.org

NARFE | SEPTEMBER 2012

47

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

MOVING SERVICES

INSURANCE

HEARING BENEFITS

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

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

VACATION RENTALS

Government Employees Travel Opportunities® Offers government employees, retirees and their families 7-Night Stays for ONLY $349 on accommodations worldwide. Book online at www.getravelop.com/narfe and save on your next vacation stay.

48

1-800-233-5764 Designed and administered by Marsh U.S. Consumer, a service of Seabury & Smith, Inc., exclusively for NARFE members: Senior Whole Life, Term Life, Medicare Supplements, Hospital Income Plan, Short Term Recovery Insurance, Pet Insurance, Accidental Death & Dismemberment, Cancer Care, Enhanced Dental Insurance and Long Term Care.

Go to www.narfeinsurance.com for more information on these programs.

GEICO:1-800-368-2734 NARFE members with good driving records may be eligible for quality automobile insurance from GEICO. Ask about the NARFE discount available to members in many states. Call today for your free, no-obligation rate quote. Be sure to mention that you’re a NARFE member!

• Discount amount varies in some states • Discount not available in all states or in all GEICO companies • One group discount applicable per policy.

Two discount programs to choose from: ValueAdd® or MemberPlus®. Similar to a warehouse membership, MemberPlus saves hundreds more for a $108 yearly membership.

MemberPlus also includes: • 45-day, money-back guarantee on membership fee and all purchases • 48 batteries, 3-year warranty, and onetime loss and damage for 3 years (small manufacturer deductible applies) on each purchased hearing aid • Guest membership for up to four extended family members (siblings, parents, etc.) for only $79 each • Combine with an existing health plan hearing benefit to maximize savings Visit TruHearingMemberPlus.com for more information, or call 877-360-2442 Mon-Fri, 9 a.m.-9 p.m. East Coast Time

EDUCATION

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

Call MASA Today. It Could Save Your Life!

Want to earn your associate’s degree before you transfer to a four-year school?

Ivy Bridge College offers a variety of degree programs that will help put you on the right track. No matter which program you choose, an education with Ivy Bridge will provide you with a solid foundation for a rewarding future. NARFE members and their families can enjoy an exclusive 5 percent savings on tuition at Ivy Bridge, a unique online institution that provides a highly supported pathway to a bachelor’s degree. To learn more, call 877-615-9246 or visit http://ivybridge.tiffin.edu/narfe.

SEPTEMBER 2012 | NARFE

HOTELS

CAR RENTALS

CREDIT UNION

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

ALAMO Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call 1-800-462-5266 and reference Contract ID 262544.

NATIONAL 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-CAR-RENT® and reference Contract ID 5282909.

NARFE’s OFFICIAL CREDIT UNION As a member of NARFE, you have the privilege of joining NARFE Premier Federal Credit Union, which has been serving members since 1935. We offer extensive services at competitive rates to members nationwide. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government.

For more information, call 800-3281500, e-mail jparish@narfepremierfcu. org or visit us at NARFEpremierfcu.org.

CREDIT CARD AVIS:1-800-331-1441

WYNDHAM HOTEL GROUP As a member of NARFE, you will receive up to 20% off the “Best Available Rate” at participating locations when you travel. Call and give agent your special discount ID number, 8000002694, at time of booking to receive discount. Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now. Call our special memberbenefits hotline 1-877-670-7088 and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®.

NARFE | SEPTEMBER 2012

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

HEALTH SCREENING

LIFE LINE SCREENING Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct the following screenings using state-of-the-art ultrasound technology in your neighborhood: 1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease.

You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share these test results with your doctor. All four screenings cost just $135. To schedule an appointment, please call 1-800-324-9906 and give the operator code number: BKHN075 or visit www.lifelinescreening. com/NARFE. Coverage may vary and may not be available in all states.

Bank of America now offers the officially approved credit card program for NARFE, featuring the Platinum Plus® MasterCard® with WorldPoints. This is the only credit card that helps support NARFE every time you use it to make a purchase–at no additional cost to you.

Call toll-free 1-866-438-6262 Use NARFE’s full name, not NARFE.

NARFE MERCHANDISE NARFE GENERAL STORE

Order Official NARFE name badges, customizable NARFE logo products and plaques. www.narfegeneralstore.com Call toll-free 855-99NARFE (855-996-2733)

49

For the Record The chart below tracks the CPI-W, the monthly inflation change, and the cumulative percentage gain for the next CSRS and Social Security COLA. CPI-W October 2011 November December January 2012 February March April May June July August September

223.043 222.813 222.166 223.216 224.317 226.304 227.012 226.600 226.036

MONTHLY % CHANGE % CHANGE FROM 223.2 -0.29 -0.10 -0.29 +0.5 +0.5 +0.89 +0.31 -0.18 -0.24

July Roiled By MarketVolatility ByTracey Ray

F

rom looking at the fund returns for July, you wouldn’t think much went on. What they don’t show is that there was a lot of intramonth volatility. For example, from July 3 to July 12, the C Fund price declined almost 3 percent. Five trading days later, it had risen 3 percent; then it fell almost 3 percent in four days. Finally, it rose more than 3.5 percent in two days to close the month up 1.4 percent.

The F Fund is the second-best-performing Fund this year (behind the C Fund) because interest rates have continued to decline. For example, 10-year Treasury note rates have fallen from 1.9 percent to 1.5 percent. But declining rates lead to lower G Fund rates. The interest rate the G Fund pays has fallen from 1.75 percent at year end to its lowest rate ever, 1.25 percent, in August.

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

50

-0.09 -0.19 -0.48 -0.01 +0.49 +1.38 +1.69 +1.51 +1.26

Index Declines Slightly

T

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.24 percent in June. To calculate the 2013 cost-of-living adjustment (COLA), the indices of July, August and September 2012 will be averaged for a thirdquarter determinant, which will be compared with the 2011 thirdquarter base of 223.233. The June index of 226.036 is up 1.26 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. June’s index is 1.74 percent higher than the December 2011 base index of 222.166. ■

Thrift Savings Plan Investments* Month G Fund 0.19% 2011 August September 0.16% October 0.14% November 0.14% December 0.15% 2012 January 0.13% February 0.12% March 0.14% April 0.15% May 0.14% June 0.11% July 0.12% Last 12 Months 1.70%

F Fund 1.45% 0.73% 0.11% 0.01% 1.01% 0.88% 0.05% (0.61%) 1.12% 0.91% 0.05% 1.38% 7.31%

C Fund (5.44%) (7.03%) 10.93% (0.21%) 1.04% 4.50% 4.34% 3.30% (0.62%) (5.99%) 4.13% 1.40% 9.26%

S Fund (8.12%) (10.73%) 14.09% (0.51%) (0.04%) 7.59% 3.99% 2.30% (0.71%) (6.91%) 3.25% (0.62%) 1.01%

Month 2011 August September October November December 2012 January February March April May June July Last 12 Months

L 2020 (3.69%) (4.73%) 6.18% (0.34%) 0.11% 3.03% 2.53% 1.23% (0.38%) (4.20%) 2.72% 0.63% 2.53%

L 2030 (4.63%) (5.92%) 7.68% (0.49%) 0.09% 3.77% 3.10% 1.49% (0.52%) (5.23%) 3.32% 0.71% 2.50%

L 2040 (5.37%) (6.85%) 8.83% (0.62%) 0.07% 4.34% 3.54% 1.68% (0.63%) (6.00%) 3.77% 0.75% 2.34%

L Income (1.10%) (1.51%) 2.31% 0.02% 0.20% 1.18% 0.98% 0.54% 0.01% (1.38%) 1.04% 0.37% 2.62%

I Fund (9.03%) (10.55%) 9.48% (2.46%) (2.03%) 5.36% 5.14% 0.13% (1.87%) (11.40%) 7.08% 0.56% (11.61%) L 2050 (6.16%) (7.80%) 9.92% (0.78%) (0.01%) 4.87% 3.99% 1.86% (0.78%) (6.85%) 4.27% 0.78% 1.79%

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

SEPTEMBER 2012 | NARFE

This medical alarm may save your life when others can’t

Lifeline with AutoAlert is the only Medical Alarm pendant that can automatically call for help even if you can’t.

Help when you need it most: ave you thought about what you would do in case Medical Emergency – Accident – Fire – Burglary of an emergency

“Good morning. in or around your home?

This is Brenda with You’re not alone. Many Lifeline. Do you need people have tried to help Mrs. Jones?” protect themselves by purchasing PERS, or Personal Emergency Response Systems. That’s a smart move, but only one system offers the extra protection of AutoAlert. That’s what a lucky subscriber named Arlene experienced when she fell in her driveway.* She hit her head and was so dazed that she didn’t think to press the button on her PERS pendant. Suddenly she Remarkably sophisticated… easy was amazed to see an ambulance to use. Now, they’ve introduced coming up the street. She wondered, AutoAlert. All you do is plug the base “How did they know I fell?” unit into a power outlet and a phone Lifeline with AutoAlert**… for land line. Then, you wear the an added layer of protection. AutoAlert pendant. If you experience Luckily for Arlene, her doctor had any kind of emergency, from fires to recommended Lifeline with AutoAlert. falls, a break-in or even just shortness This revolutionary system features of breath, press the button and it the only Medical Alarm pendant calls the Lifeline Emergency Response that can automatically call Lifeline’s Center. If you fall and can’t press the state-of-the-art response center, if button for any reason, AutoAlert with it detects your fall. Then if you advanced fall detection technology need help or can’t respond, expert can automatically call for you, even emergency response operators if you can’t. Lifeline Response quickly call friends, family or local Center Associates are trained to ambulance, police or firefighters to assess the situation and will summon summon help… quickly and reliably. help quickly.

Simple, Reliable, and Affordable Long-Term Contract Activation/Equipment 35 Years of Experience FDA registered Lifetime Warranty Automatic Fall Detection Recommended by – over 65,000 healthcare professionals

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Competition Some up to $300 No No Some No No

• Free shipping • Free activation • No equipment cost Don’t wait another minute… call now! firstSTREET is proud to offer Lifeline with AutoAlert at a special introductory price. There’s no equipment to buy, no long-term contract and the setup takes only seconds.

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Call now and receive Free equipment, Free activation, Free shipping and a Free gift– valued at $35.

with AutoAlert Please mention promotional code 44871.

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va G RE lue IF E d T at $3 5

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*Button range may vary based on range test in and around your home. **AutoAlert does not detect 100% of all falls. If able users should always push their button when they need help. Copyright © 2012 by firstSTREET for Boomers and Beyond, Inc. All rights reserved.

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