September 2014 NARFE Magazine

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Data breaches threaten feds’ personal info

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Supreme Court Rules on inherited IRAs

COVER STORY

Katherine Archuleta The OPM Director Answers Our Questions

Volume 90 • Number 9

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WashingTon Watch

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House-Passed TSP Bill Would Put New Feds Into Lifecyle Funds

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Six-Day Mail Delivery Survives Challenges

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Feds on Track for 1% Pay Raise

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House Panel Examines the General Schedule

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Bill Would Repeal FERS Contribution Increases

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2015 NARFE Legislative Conference Set for March 14-17

10 NARFE Bill Tracker

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Cover Story

Columns

Q&A With OPM Director Katherine Archuleta. Director of the Office of Personnel Management Katherine Archuleta answers our questions on a wide range of topics.

4 From the President 38 Managing Money 40 The Informed Citizen

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You’ve been breached. Amid a wave of federal agency data breaches, security is being stepped up.

Employees and retirees should be on the alert, too.

42 Alzheimer’s Update DEPARTMENTS

16 Questions & Answers 44 For the Record: TSP

Investments, COLA Chart

46 NARFE News On the Web

52 The Way We Worked

visit us online at:

www.narfe.org like us on facebook:

NARFE National Headquarters follow us on twitter:

@narfehq

ON THE COVER

Photograph by Jim Richards w w w. n a r f e . o r g

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september 2014 | Volume 90 | Number 09

Editor Margaret M. Carter Assistant Editor Ken Fanelli Editorial Administrator Toni Vallario Graphic Design Charlene Gridley Editorial Board Joseph A. Beaudoin, Paul H. Carew Elaine C. Hughes, Richard G. Thissen Editorial Office: narfe magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Email: communications@narfe.org Advertising Sales: Warren Berger Media People Inc. 122 East 42nd St., Suite 725 New York, NY 10168 Phone: 212-779-7172, ext. 223 Email: wberger@mediapeople.com NARFE for the Visually Impaired On the Telephone: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-5047300 or go to www.nfbnewsline.org.

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

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

National Active and Retired Federal Employees Association NATIONAL OFFICERS 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

REGIONAL VICE PRESIDENTS

REGION I Arthur Pike (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 207-764-4468 Email: artpike1937@aol.com REGION II Evelyn Kirby (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-604-1141 Email: ekirby@atlanticbb.net 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

Here’s How to Contact Us… If you want to:

Join NARFE Call (toll-free): 800-627-3394 or go to: www.narfe.org Change your address, phone number or email Call (toll-free): 800-456-8410 Email: memberrecords@narfe.org

REGION VI Jerome S. Smith (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-534-5849 Email: retiredjer@aol.com REGION VII Frank Impinna (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 303-482-1747 Email: impinna@gmail.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: billmartin@narferx.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

www.narfe.org

narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $45. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2014, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in narfe, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President

It Pays to be a recruiter!

I

want to give you $10. Yes, you and every member who is reading this magazine.

As an incentive to recruit new members

to our Association, NARFE will pay $10 to any member who recruits a new member in the month of September.

September is an ideal time for us to build our collective “voice.” It is when Congress resumes its work after the long summer recess and when legislators and their staffs enter the critical lead-up period to the general election in early November.

There are several ways associations encourage members to recruit, and most of them involve incentives. Here are ours: For each new member signed up in September (and September ONLY), the recruiting member will receive $10. The new recruit can be either a retired or an active federal employee. In addition, for each new member ob-

tained, the recruiter’s name will be entered into a drawing for a Kindle Fire tablet computer from Amazon.com.

This issue of narfe magazine has everything you need to be a recruiter. The membership application appears on page 48. In the space that asks, “May We Thank Someone?” fill in your name, ID number and chapter number. You can find your ID and chapter numbers on the magazine label. When you finish reading the issue, tear out the application and give it to someone who qualifies for membership but hasn’t joined.

Applications must be postmarked – and online or phone joins completed – by September 30.

On the subject of lawmakers and the November elections, if you missed meeting members of your congressional delegation and/or their challengers during the summer recess, it’s not too late to get their attention and speak up for NARFE’s issues before the election.

When your friends, acquaintances and current or former colleagues join NARFE, they become part of a group that does more than just protect their earned benefits, they become part of a movement for equity and fairness − one that decision makers in Washington have learned to heed. Not a bad investment for $40, and one that has a little sweetener in it for you!

Joseph A. Beaudoin NARFE national President natpres@narfe.org

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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 minutes carry over and are available for 60 days. If you exceed the minute balance on your account, you will be billed at 35¢ for each minute used over the balance. 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 GreatCall phone and the activation fee (or set-up fee) 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 be deducted from your refund for each minute over 30 minutes. You will be charged a $10 restocking fee. The shipping charges are not refundable. Jitterbug and GreatCall are registered trademarks of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics Co., Ltd. ©2014 Samsung Telecommunications America, LLC. ©2014 GreatCall, Inc. ©2014 by firstSTREET for Boomers and Beyond, Inc.

Washington Watch

The Smart Savings Act would put contributions of new feds into a TSP Lifecycle fund. The

House-passed TSP bill would put new feds into lifecyle funds

B

efore adjourning for the August congressional recess, the House of Representatives passed legislation to give new federal employees a better return on their

Thrift Savings Plan (TSP) investments at the onset of their federal careers.

Current law, enacted in 2009, provides for the automatic enrollment of new federal civilian workers in the TSP, with the contributions of those new hires invested in the Government Securities Investment Fund (G Fund) at 3 percent of salary, unless and until they elect otherwise. The Smart Savings Act, H.R. 4193, as passed by the House, would shift the default fund to a Lifecycle fund (L Fund) with an age-appropriate asset allocation. Lifecycle funds have yielded a historically higher return than the G Fund, but involve a riskier investment.

The House measure was sponsored by Oversight and Government Reform Committee Chairman Darrell Issa, R-CA, and enjoyed broad bipartisan support, including cosponsorship by all lead Republican and Democratic

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members of the Oversight Committee.

A bipartisan companion measure, S. 2117, was introduced by Sens. Elizabeth Warren, D-MA, and Rob Portman, R-OH, and approved by the Senate Committee on Homeland Security and Governmental Affairs in June.

Sponsors of the measure hope for quick Senate action and enactment before the midterm elections in November.

In December 2013, the Federal Retirement Thrift Investment Board, with the unanimous support of the Employee Thrift Advisory Council, of which NARFE is a member, approved a motion to direct its executive director to pursue the legislative change.

Lifecycle funds have become increasingly popular among private-sector, defined-contribu-

L Funds invest in a mix of the G, F, C, S and I Funds. tion plans; and while the investment does expose participants to greater market risk, the design of the funds addresses such risk by moving toward a safer mix of investments as participants grow older and closer to retirement.

The TSP’s Lifecycle funds invest in a mix of the TSP’s five core funds: the G Fund, the Fixed Income Index Investment Fund (F Fund), the Common Stock Index Investment Fund (C Fund), the Small Cap Stock Index Investment Fund (S Fund) and the International Stock Index Investment Fund (I Fund).

The TSP offers five Lifecycle funds, each targeted to a different date: L Income, for those who are currently withdrawing from their TSP accounts or plan to before 2015; L 2020; L 2030; L 2040; and L 2050.

The TSP is the nation’s largest pension program, with more than 4.6 million participants and assets of more than $400 billion.

—By Alan Lopatin, Legislative Counsel (Lopatin also is president of the National Association of Thrift Savings Plan Participants.)

SIX-DAY MAIL DELIVERY SURVIVES CHALLENGES IN THE HOUSE

D

espite two major attempts in the House of Representatives to eliminate the six-day mail delivery requirement, it appears to have weathered the political storm.

Since 1982, Congress has mandated six-day mail delivery through language in its government-funding appropriations bills. Yet, when the Fiscal Year 2015 Financial Services and General Government Appropriations Act – the bill typically hosting the provision – was introduced, the language was absent. It re-

mained so even through subcommittee consideration of the bill.

However, when the full House Appropriations Committee considered the bill, the six-day mandate was reinserted through an amendment cosponsored by Reps. José E. Serrano, D-NY, and Tom Latham, R-IA, and adopted by the committee.

Prior to the Appropriations Committee’s consideration of the bill, Rep. Eric Cantor, R-VA, the House Majority Leader at the time, proposed inserting language ending the six-day

FEDS ON TRACK FOR 1% RAISE

S

o far, Congress has remained silent on the issue of a pay raise for federal employees. Therefore, federal employees can expect to receive a 1 percent pay raise in 2015, the level proposed by President Obama.

By law, Congress appropriates a pay increase or freeze each year as part of the Financial Services and General Government Appropriations bill. However, in recent years, the pay raise (or freeze) has been included in a continuing resolution or omnibus bill, since individual appropriations bills have rarely made it through both chambers by the start of the fiscal year.

In his Fiscal Year 2015 budget to Congress, President Obama proposed a 1 percent pay raise for employees in 2015, the same

amount that feds received this year. This year, as last year, the Financial Services appropriations bill passed by the House and by a Senate committee does not contain any mention of a pay raise. This doesn’t mean a pay freeze, however. Silence on the part of Congress gives the president the authority to implement a raise at a percentage he sees fit.

At this point, it is likely the president will reiterate his support for a 1 percent raise.

The Employment Cost Index (ECI), which tracks wages in the private sector, rose by 1.8 percent last year, and NARFE advocated for providing feds with the same increase. A raise close or equal to the ECI was the norm prior to the pay freezes in 2011, 2012 and 2013.

delivery mandate into a transportation bill. The intent was to claim estimated savings for the U.S. Postal Service to offset, for the sake of maintaining a vague sense of budget neutrality, additional funding for the Highway Trust Fund. That proposal was rejected by members of both parties.

Additional attempts at postal reform will no doubt bring sixday delivery to the surface in the future, but, for now, it seems to be a dead issue.

—By John Hatton, Deputy Legislative Director

Legislative Resources • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE Legislative Department staff, distributed via email and available by phone (toll-free) at 877-217-8234 and online at www.narfe.org.

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

—By Jessica Klement, Legislative Director w w w. n a r f e . o r g

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Washington Watch

HOUSE panel EXAMINES THE GENERAL SCHEDULE

A

t a July hearing, members of Congress and administration officials agreed that the federal government’s General Schedule (GS) personnel system could be modernized, even as opinions differed on how rigid the current scheme is. The hearing was held by the House Committee on Oversight and Government Reform’s Federal Workforce Subcommittee.

“Agencies currently have the tools they need to deal with poor performers and to manage employees,” asserted Office of Personnel Management (OPM) Director Katherine Archuleta. But she added that OPM is always looking for ways to improve the existing system. She also noted that President Obama, in his budget requests, has asked Congress to convene a commission to analyze the system and possible reforms.

On the other hand, Rep. Blake Farenthold, R-TX, chairman of the subcommittee, described the system as “antiquated” and “inflexible,” failing either to hold poor performers accountable or reward

strong performance. Nonetheless, no concrete reform proposals were on the table.

Meanwhile, Rep. Stephen F. Lynch, D-MA, ranking member of the subcommittee, noted that three years of pay freezes and increased retirement contributions for new federal employees have undermined employee morale and damaged the credibility of Congress to treat federal workers fairly. He, too, said the system could use increased flexibility and accountability, along with greater rewards for performance. But he also cautioned that pay-for-performance systems required tradeoffs, and pointed to the most recent attempt, the National Security Personnel System (known by its acronym NSPS), as a system that did not work.

As with many reforms, the devil will be in the details. At this point, neither Congress nor the administration has provided any. But there does appear to be a consensus that reform is needed. And that’s a start.

—By John Hatton, Deputy Legislative Director

BILL WOULD RESTORE FERS RATES

R

ep. Donna Edwards, D-MD, has introduced a bill to repeal recent increases in retirement contributions for new Federal Employees Retirement System (FERS) employees. Since 2012, Congress has twice increased FERS contributions for new hires – from .8 percent to 4.4 percent of salary – without an increase in benefits.

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The increases will cost federal employees $21 billion over 10 years.

NARFE opposed the increases and thanked Edwards for introducing the Federal Employee Pension Fairness Act, calling it “an important step toward ensuring we can continue to recruit and retain the best and brightest into public service.”

— By Jessica Klement, Legislative Director

MYTH vs.

REALITY Myth: Federal employees are substantially overpaid compared to the private sector, with the average federal employee making well over $100,000.

Reality: In 2012, the Office of Personnel Management reported that the average salary for a full-time, permanent, nonseasonal federal employee was roughly $78,500.

Comparing privateand public-sector wages proves difficult, as there are many factors that affect pay. In general, federal jobs are more likely to involve high levels of education and responsibility and require specialized training or a high-security clearance.

For example, 44.3 percent of federal employees hold bachelor’s degrees, versus just 18.7 percent in the private sector.

A 2012 Congressional Budget Office report found that when benefits are weighed, America’s most educated and experienced federal workers earn about 18 percent less in total compensation than they would if they worked in the private sector. The report also found that federal workers with less experience and education earned slightly more than their counterparts in the private sector.

However, the Federal Salary Council, which analyzes data from the Bureau of Labor Statistics, says that feds are underpaid by 35 percent.

2015 NARFE Legislative conference set for march 14-17 in VIRGINIA

A

becoming first-class advocates and tive Department staff will provide dvocacy before Congress is NARFE’s core mission, learning how to organize their loan orientation session on Saturday cal chapters and federations. and the NARFE Legislaevening for first-time participants.

The $175 registration fee intive Training Conference is the Also new in 2015, the conference premier opportunity to learn from cludes three buffet breakfasts, two will wrap up with a reception that full lunches, one buffet dinner, the NARFE Legislative Departalso will provide participants with all materials, and transportation ment staff and other experts. The the opportunity to ask any lastto and from Capitol Hill. Federa2015 NARFE Legislative Training minute questions of the NARFE Conference will be held Saturstaff before visiting day, March 14, through Tuesday, Capitol Hill and March 17, at the Renaissance returning home.

Arlington Capital View Hotel in Capitol Hill. The Crystal City, VA. The three-day Legislative Training conference includes training, Conference centers March 14-17, 2015 TRAINING CONFERENCE around national speakers and the opthe opportuportunity to network with fellow nityby toFebruary travel to3,CapREGISTRATION FORM Registration must be returned 2015 tion “Ten Percent Funds” can and NARFE grass-roots activists. The itol Hill and meet with legislators.

Each participant must complete a form. Please write legibly. should be used to help offset the conference culminates in a visit to Participants are responsible for o Mr. oforegistration.

Mrs. o Miss o Ms. o Dr. scheduling NARFE Membership # 17 ______________________ cost Capitol Hill, where attendees Name: will their March meetConference Registration. use their new skills in meetings ings on Capitol Hill___________________________ and should _______________________________ ________________________ Last First Middle Registration will open October 1. with their members of Congress work with other NARFE members Name as you would like it to appear on badge: _________________________________________________ and staff.

A registration form will be infrom their state and local area to Federationcluded or chapter officer issues title for of your badge (choose only one schedules. title — Examples: President, Ohio Federain future narfe Conference Information. coordinate The NARFE tion; or NARFE-PAC Chair, Chapter 192/Raleigh, NC): ___________________________________________ magazine. Registration also will The conference is open to all Legislative Department is availbe available online. The registraNARFE members interested in________________________________________________________________________________________ able to assist. tion deadline is February 3, 2015, Hotel Information. The speHome address: ____________________________________________________________________________ and the fee is nonrefundable. cial room rate at the Renaissance ________________________________________________________________________________________ Training. In addition to receiv- Arlington Capital View Hotel is hands-on training to prepare $175, 10.25______________________________ percent state and Preferred ing phone: _____________________________ Emailplus address: for Capitol Hill meetings, particilocal occupancy taxes, for a total Notify in case of emergency: ________________________________________________________________ pants will learn about the issues Nameof $192.94 a night for single-Phone andnumber facing the federal community, double-room occupancy.

The room $175 registration fee is not refundable.

NARFE’s legislative agenda and rate available forcredit threecard days $____________ o is Charge to my Please complete registration form and how to organize locally. before and after the Legislative o MasterCard o Visa o Discover o AMEX return with New check made payable to Legislathis year, NARFE Training Conference, space depenCard # ____________________________________________ NARFE, or charge to your credit card. dent. The hotel is within walking Scenes from the Exp. Date ________ / _______ shopping distance of(mm) restaurants, Mail to: (yy) 2013 Conference: NARFE Legislative Conference and Washington’s Metro subway Top left, Rep. Name on card (print) ________________________________ Budget & Finance Gerald E. Connolly system. Hotel registration also will 606 North Washington St. (D-VA) addresses the Signature Date ____________ open on________________________ October 1.

Alexandria, VA 22314-1914 conference.

More information, including a Left: Alison Peña tentative schedule, is available by of Wisconsin meets Rep. For Internal Planning Purposes Only:Mark Pocan For Internal Planning of contacting the NARFE Legislative in his Capitol Hill March 17 on Capitol Hill: Conference meals and events are included for registered attendees.

Department at leg@narfe.org. office.

NARFE 2015 Legislative

Do you plan to ride the Are you planning on attending the Saturday night dinner? oSarah Yes Weissmann, o No —By Grass-Roots Program NARFE-provided bus to Are you planning on attending the breakfasts on Sunday, Monday manager and Tuesday?

Capitol Hill on March 17? o Yes o No o Yes o No Registered attendees may bring guests to all NARFE-provided meals for a w w w. n a r f e . o r g | 9 Do you plan to return to the separate $175 fee. Will you have a guest? o Yes o No hotel from Capitol Hill on Name of guest(s) _______________________________________________

Washington Watch

narfe bill tracker The NARFE bill TRACKER is your monthly guide to the congressional legislation that NARFE is following. Check back each issue for updates.

ISSUE

Bill Number / Name / Sponsor H.R. 26: Deferred Benefits Adjustment Act of 2013 / Rep. Nydia M. Velázquez, D-NY Cosponsors: 1 (D)

DEFERRED ANNUITIES

supporting federal employees

H.Res. 388: Expressing the sense of the House of Representatives supporting federal employees / Rep. Marcia L. Fudge, D-OH

What Bill Would Do

Latest Action(s)

Provides for indexing of deferred annuities, including survivor annuities, and for individuals becoming subject to the Federal Employees Retirement System by election. Terminates the entitlement of a survivor who remarries before age 55 to an annuity based on the service of a deferred annuitant who dies before establishing a valid claim for a Civil Service Retirement System annuity.

Referred to the House Committee on Oversight and Government Reform

Recognizes that the work that federal employees perform should be honored and respected. Outlines several ways Congress should not target federal employees.

Referred to House Committees on Oversight and Government Reform, and Ways and Means

narfe, April 2013, p. 9

narfe, January 2014, p. 10

Cosponsors: 42 (D) H.R. 4306: FAIR (Federal Provides federal employees Adjustment of Income with a 3.3 percent pay raise Rates) Act / Rep. Gerald in 2015.

E. Connolly, D-VA Federal Compensation

Cosponsors: 28 (D) S. 2397: FAIR (Federal Adjustment of Income Rates) Act / Sen. Brian Schatz, D-HI

Referred to the House Committee on Oversight and Government Reform narfe, June 2014, p. 9 Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 1 (D)

Paid Parental Leave

Pension scam protection

H.R. 517: Federal Employees Paid Parental Leave Act of 2013 / Rep. Carolyn B. Maloney, D-NY Cosponsors: 24 (D)

H.R. 3310: Annuity Safety and Security Under Reasonable Enforcement Act of 2013 / Rep. Matt Cartwright, D-PA Cosponsors: 54 (D)

Allows federal employees to substitute, for four weeks, any available paid leave for any leave without pay available for either the birth of a child or placement of a child for either adoption or foster care.

Requires appropriate disReferred to four House closures regarding “pension committees advance” schemes and caps the interest rates on these narfe, January 2014, p. 11 advances. Also creates a private right of action to allow individuals to enforce these laws in court.

NARFE’s Position: 10

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Referred to the House Committee on Oversight and Government Reform

Support

Oppose

No position

ISSUE

Bill Number / Name / Sponsor H.R. 1367: FEHBP Prescription Drug Integrity, Transparency, and Cost Savings Act / Rep. Stephen F. Lynch, D-MA Cosponsors: 3 (D)

Health Care

H.R. 1780: To provide that the only health plans that the federal government may make available to the president, vice president, members of Congress and federal employees are those created under the Patient Protection and Affordable Care Act or offered through a health insurance exchange / Rep. Dave Camp, R-MI

What Bill Would Do

Latest Action(s)

Provides the Office of Personnel Management greater oversight authority over the prescription drug contracting and pricing methods of the Federal Employees Health Benefits Program.

Referred to the House Committee on Oversight and Government Reform

Removes federal employees from the Federal Employees Health Benefits Program and places them in the health exchanges created under the Affordable Care Act.

Referred to the House Committees on Oversight and Government Reform, Energy and Commerce, and Administration

narfe, June 2013, p. 9

narfe, July 2013, p. 15

Cosponsors: 30 (R) H.R. 3319: Equal Healthcare Access Act / Rep. Darrell Issa, R-CA Cosponsors: 1 (D), 8 (R)

Requires the Office of Personnel Management to administer a health insurance plan for nonfederal employees under the existing Federal Employees Health Benefits Program.

Referred to House Committees on Oversight and Government Reform, Energy and Commerce, and Ways and Means narfe, January 2014, p. 9

H.R. 1795: Social Security Fairness Act of 2013 / Rep. Rodney Davis, R-IL GPO/WEP

combat zone tax parity

FEDERAL PENSIONS

Cosponsors: 91 (D), 38 (R)

Repeals both the Government Referred to the Pension Offset (GPO) and the House Committee on Windfall Elimination Provision Ways and Means (WEP).

S. 896: Social Security Fairness Act of 2013 / Sen. Mark Begich, D-AK

Referred to the Senate Finance Committee

Cosponsors: 15 (D), 3 (R), 1 (I)

narfe, July 2013, p. 16

H.R. 4621: Federal Employee Combat Zone Tax Parity Act / Rep. Rob Wittman, R-VA Cosponsors: 1 (D), 1 (R) S. 1678: Public-Private Employee Retirement Parity Act / Sen. Richard Burr, R-NC Cosponsors: 2 (R)

Extends the tax credit availReferred to the able to military personnel who House Committee on serve in combat zones to civil- Ways and Means ian employees. narfe, July 2014, p. 6 Eliminates the defined-benefit portion of the Federal Employees Retirement System (FERS), leaving only Social Security and the Thrift Savings Plan for FERS employees in retirement.

Referred to the Senate Committee on Homeland Security and Governmental Affairs narfe, February 2014, p. 8

(Continued on p. 12) w w w. n a r f e . o r g

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11

Washington Watch

narfe bill tracker (Continued from p. 11) ISSUE

Bill Number / Name / Sponsor H.R. 630: The Postal Service Protection Act / Rep. Peter DeFazio, D-OR Cosponsors: 176 (D), 9 (R)

What Bill Would Do

Latest action(s)

Eliminates the future retiree health benefit prefunding requirement, protects six-day mail delivery and prevents the closure of rural post offices.

Referred to House Committees on Oversight and Government Reform and Judiciary

S. 316: The Postal Service Protection Act / Sen. Bernie Sanders, I-VT

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 31 (D)

postal reform

H.R. 2748: Postal Reform Act / Rep. Darrell Issa, R-CA Cosponsors: 2 (R)

S. 1486: Postal Reform Act / Sen. Thomas R. Carper, D-DE Cosponsors: 1 (R)

H.R. 4193: Smart Savings Act / Rep. Darrell Issa, R-CA Cosponsors: 4 (D), 2 (R) Thrift Savings Plan

Moves the U.S. Postal Service to five-day mail delivery, removes protections for injured workers and eliminates tothe-door delivery in favor of cluster boxes.

Approved by the House Committee on Oversight and Government Reform on 7/24/13

Threatens integrity of the Federal Employees Health Benefits Program by removing postal workers and retirees, cuts workers’ compensation benefits and eliminates Federal Employees Retirement System pension for new hires.

Amended and approved by the Senate Committee on Homeland Security and Governmental Affairs on 2/6/14

New federal employees automatically enrolled in the Thrift Savings Plan would have their funds deposited in the L (Lifecycle) Fund instead of the G Fund.

Passed by the House 7/14/14

H.R. 3744: Federal Employee Pay Restoration Act / Rep. Derek Kilmer, D-WA

Provides back pay to federal employees who were furloughed as a result of sequestration.

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Referred to the House Committee on Financial Services narfe, May 2014, p. 8

Cosponsors: 2 (D), 1 (R)

NARFE’s Position: 12

See story, p. 6

Approved by the Senate Homeland Security and Governmental Affairs Committee on 6/25/14

S. 2117: Smart Savings Act / Sen. Elizabeth Warren, D-MA Cosponsors: 2 (D), 2 (R)

Federal Employee Back Pay

narfe, April 2014, p. 6

Support

Oppose

No position

ISSUE

Bill Number / Name / Sponsor

H.R. 4202: CPI-E Act of 2014 / Rep. Mike Honda, D-CA ANNUITY COLA

REPEAL FERS CONTRIBUTION INCREASES

Cosponsors: None

H.R. 5338: Federal Employee Pension Fairness Act / Donna Edwards, D-MD Cosponsors: 9 (D)

What Bill Would Do

Latest action(s)

Requires the use of the Referred to three Consumer Price Index for the House committees Elderly (CPI-E) instead of the current CPI-W to determine narfe, May 2014, p. 8 cost-of-living adjustments for federal civilian annuities, military retirement and certain veterans’ benefits.

Repeals laws that increased Referred to the Federal Employees Retirement System contribu- See story, p. 8 tions for newly hired federal employees from .8 percent to 4.4 percent of salary.

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All appointments must be scheduled through TruHearing. vendors, which may be different from items covered under your Service Benefit Plan or any other applicable federal healthcare program.

For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefits first. To find out what is covered under your policy, contact the Service Benefit Plan. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. In addition, these items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, BCBSA, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time.

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Questions & Answers

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

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

employees Voluntary Contributions explained

Q

I asked my agency payroll office about “voluntary contributions,” but the person I spoke with wasn’t sure what they are or how they work and said she would get back to me. I’m still waiting. Can you tell me?

A

Voluntary contributions (VCs) refers to a provision of the Civil Service Retirement System (CSRS) law that allows employees to pay additional CSRS retirement contributions into an individual account that can be used to increase the employee’s monthly annuity or be taken as a lump sum when the employee retires from federal service.

Each $100 in the VC account at retirement will provide an additional annuity of $7 a year. Interest, determined each year by the U.S. Treasury Department and compounded annually, is earned and credited to the account balance.

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Contributions by the employee must be in multiples of $25 and cannot exceed 10 percent of the employee’s total basic pay received during his/her federal service.

The interest rate paid on VC accounts in 2014 is 1.65 percent. The accrued interest on the account is subject to federal income tax if you take a lump-sum payment, but it also can be rolled over to an individual retirement account (IRA) or other qualified retirement plan to defer the income taxes.

To establish a voluntary contribution account, you should complete an application form (Standard Form 2804) with your agency. Voluntary contribu-

tion accounts are not available to employees under the Federal Employees Retirement System (FERS).

How law enforcement Retirement is figured

Q

I have an interview scheduled for a job as a federal prison guard and want to know something about the retirement calculation beforehand. Is the formula different than the one used for other federal retirees?

A

Under both of the major federal retirement systems, the Civil Service Retirement System and the Federal Employees Retirement System (FERS), the formulas used to calculate retirement benefits are different for law enforcement officers, air traffic controllers, firefighters and nuclear material couriers than for other federal civilian

positions. This is because these positions usually have mandatory retirement age requirements that keep the employee from accruing additional years of service toward his or her retirement. For that reason, retirement contributions for these positions are higher, and an enhanced formula in the annuity computation is used.

Since you would be under FERS if you are offered and accept the job, your retirement calculation for 20 years of law enforcement service would be the average of your highest three years of salary multiplied by 1.7 percent, multiplied by your years and months of service as a law enforcement officer (up to 20 years). Any additional years of service over 20 under FERS would be calculated using the general formula of 1 percent of your high-three average salary multiplied by the years and months of service over 20 years.

Who Notifies OPM of divorce order?

Q

When I retire, my exspouse is supposed to get a big chunk of my government retirement. Am I required to notify my agency, or whoever is going to pay me my retirement, about my divorce?

A

The Office of Personnel Management (OPM) administers the retirement benefits for most of the government. Unless your retirement is covered by a different retirement than the Civil Service Retirement System or the Federal

Employees Retirement System, a court-certified copy of your final divorce decree and all accompanying documents should be sent to OPM. Your question is with regard to which party to the divorce is responsible for submitting the court order and documents to OPM. According to OPM’s Publication RI 83-116, A Handbook for Attorneys on Court-Ordered Retirement, Health Benefits and Life Insurance, in order for the former spouse to claim benefits, the former spouse or legal representative – not the retiree – is responsible for filing a certified copy of the court order and all other required supporting documents with OPM.

WEP Calculator

Q

I was informed by the Social Security Administration (SSA) that I can get estimates of my future benefits based on the Windfall Elimination Provision (WEP) with an SSA calculator. Please provide the website address for this calculator.

A

The Windfall Elimination Provision (WEP) calculator is located at www. socialsecurity.gov/calc-wep. You will need to know the amount of your federal monthly annuity and yearly earnings.

form to make same-sex spouse beneficiary

Q

Under the Defense of Marriage Act, are there different forms required

to process the entitlement for my same-sex spouse as a beneficiary of my federal employee/retiree benefits?

A

No, the same form is used by all. For samesex domestic partners or spouses to receive lump-sum benefits, employees or annuitants must designate their same-sex domestic partners or spouses under the first order of precedence (through a designated beneficiary) using SF 2808, Designation of Beneficiary, Civil Service Retirement System (CSRS), or SF 3102, Designation of Beneficiary, Federal Employees Retirement System (FERS).

retirees State cannot attach federal annuity

Q A

Can my state attach my federal retirement benefits to pay a debt?

The Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) Handbook, published by the Office of Personnel Management (OPM), indicates that a state cannot attach your federal retirement benefits.

Here is what it says: “Generally, debts may be collected from retirement benefits only to the extent expressly authorized by Federal statutes. As an agency of the Federal Government, OPM will collect claims such as: w w w. n a r f e . o r g

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Questions & Answers

“1. Debts due other Federal agencies, as authorized by 31 U.S.C. 3716; “2. Debts, penalties, and interest due because of a court judgment obtained by the Department of Justice or its designee, as authorized by Public Law 97-276, 96 Stat. 1195-1196; and “3. Alimony or child support, as authorized by 42 U.S.C. 659.

“Included in the above is IRS tax liens.”

Number of Medicare benefit periods

Q

18

I am scheduled to have a hip replacement and need to know if there is a limit

ROC3137NARFEhalfAds.indd 3 s e p 2 0 14

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to the number of benefit periods I am authorized under Medicare if I go to a skilled nursing facility.

A

The way that Medicare measures your use of hospital and skilled nursing facility (SNF) services is as follows: A benefit period begins the day you’re admitted as an inpatient in a hospital or SNF. The benefit period ends when you haven’t received any inpatient hospital care (or skilled care in a SNF) for 60 days in a row. If you go into a hospital or SNF after one benefit period has ended, a new benefit period begins. You must pay the inpatient hospital deductible for each benefit period.

There’s no limit to the number of benefit periods.

PART B Late Penalty and the FEHBP

Q

I retired from federal service at age 67. I went to Social Security and enrolled in Medicare Part A but not Part B. A few years later, I enrolled in Part B and was informed that the 10 percent late penalty would apply. I informed them about the exemption rule for FEHBP coverage that would apply since I was still enrolled in an FEHBP plan. They said I misunderstood the exemption rule and that the penalty would still apply.

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Questions & Answers

However, in the Q & A section of the July issue of narfe magazine on page 15, the answer given to a question appears to make Social Security wrong. What is the correct story?

A

The Q & A you refer to in narfe magazine highlights how confusing Medicare laws can be. It also highlights why we have to be careful in the wording of our Q&As. The question in the magazine came from the spouse of an active federal employee who is covered by the FEHBP. As a family member covered by a still-working spouse under an employer’s group health insurance coverage (FEHBP), the

DIGNITY

spouse can wait to sign up for Medicare Part B until the FEHBP enrollee retires from federal service and not be subject to the late enrollment penalty. The spouse then has an eight-month window to enroll in Part B before being subject to the 10 percent premium surcharge. The key information is that the coverage was carried by a still-working employee.

REPORTING A DEATH

Q

Is there an alternate way for a family member to contact the Office of Personnel Management (OPM) to report the death of an annuitant and apply for survivor benefits if

SECURITY

he or she is unable to reach the agency by phone?

A

There are three ways to contact OPM to report the death of an annuitant in addition to calling its toll-free Retirement Services Information number, 888-767-6738: 1. Go online to www.opm.gov/ retirement-services/my-annuityand-benefits/life-events/death/ report-of-death, complete the information required, then click “send”; 2. Send an email message to OPM at retire@opm.gov and provide the information about the deceased annuitant and survivor.

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Questions & Answers

NARFE at Your Service 3. Write to OPM and enclose a completed Death Claim form. The forms are available online. If the retiree was under the Civil Service Retirement System, the form to use is SF 2800; if the retiree was under the Federal Employees Retirement System, use SF 3104.

Any other forms and/or evidence required should be included. Also include a copy of the annuitant’s death certificate and a copy of the certificate of marriage to the widow or widower. Send all to: Office of Personnel Management, Retirement Operations Center, Attention: Death Claims Section, P.O. Box 45, Boyers, PA 160170045.

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Annuity overseas

Q A

I will be moving overseas.

Can I have my annuity payments sent there?

Direct deposit is available to retirees residing in Canada, but, generally, not to those outside the United States. However, these retirees can have their payments electronically deposited in a U.S. bank.

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

NARFE service officers are available to answer questions and to assist in helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. For the nearest service officer, call NARFE (toll-free) at:

800-456-8410.

NARFE Service Centers also are available in some areas. Use the Service Center listings on the NARFE website,

www. narfe.org.

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Cover Story

Questions & Answers With

Katherine

Katherine Archuleta, director of the Office of Personnel Management (OPM), answered NARFE magazine’s questions on The retirement processing backlog, federal hiring, her legacy and more.

Q. Phased Retirement

After the law authorizing the establishment of a phased retirement option for federal employees was enacted in July 2012, your predecessor John Berry said that implementing regulations would be put on a “fast track.”

Now, almost two years later, they still haven’t been issued. Can you give us any idea when they will be issued, why it has taken so long and if you anticipate this will be a popular program?

a. We are hard at work on the rule, and I know how very important it is to your readers. With that said, I hope the rule will be completed in fiscal year 2014. We will definitely update your readers on the rule. However, most importantly, we want to make sure we get it right.

Q. Retire/Rehire

The 2010 law that allows federal agencies, at their own discretion and without OPM permission, to hire a limited number of federal annuitants

Archuleta Director of THE OFFICE OF PERSONNEL MANAGEMENT

Photograph by Jim Richards

w w w. n a r f e . o r g

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Q&A with

Katherine Archuleta for a limited time without salary offset expires in October. Will OPM support legislation to extend the re-employed annuitant law past the end of its five-year sunset provision?

a. OPM will do a review of the law and any implications it may have once it is up for reconsideration. However, it is too early to speculate at this time.

Q. Retirement Tsunami

For many years, a wave of federal government retirements has been predicted.

In 2006, another one of your predecessors, Linda Springer, coined the phrase “retirement tsunami” to describe the number of retirements she saw on the horizon. It has been slow to materialize, but we began to see retirements start to trend upward in 2011. As you look beyond the horizon, do you see a federal retirement tsunami building? What are the implications for OPM and other agencies?

a. While we haven’t yet seen a large upswing in retirements, we are monitoring trends and other indicators in collaboration with our agency partners. This planning helps us to better anticipate our workload and informs how we allocate resources in order to provide the most efficient and highest-quality service to retirees and their families.

As leaders, we always need to be thinking about workforce planning in the long term.

In order to ensure that we maintain a strong, knowledgeable and innovative workforce, every federal department and agency should review the resources they have – the most important being their employees – to make sure they have what they need to continue to deliver excellent service to the American people.

Q. Retirement Processing Backlog

In January 2012, in response to criticism from members of Congress, NARFE and others, OPM announced a strategic plan to speed up retirement processing. You’ve had some setbacks as you try to reach your goal of processing 90 26

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percent of cases in 60 days or less. But in your blogpost in March, you reported that at the end of fiscal year 2013, the claims inventory was 17,719 cases, a 71 percent reduction since the peak of 61,108 cases in January 2012. And you said that as of February 2014, the average time to process a new retirement claim was 61 days, down from 91 days in July 2013 and 156 days in December 2011. How will you maintain this pace, and how does retirement processing figure into the IT improvements OPM is implementing?

a. Processing new requests for retirement as quickly as possible has been OPM’s goal and desire since the inception of the Retirement Strategic Plan in 2012. I’m proud of the progress we’ve made in significantly reducing the inventory and decreasing case processing times. For the month of May, the retirement inventory decreased to 14,551. This is the lowest the inventory has been in 2014 and the third lowest level since when we began tracking this data in July 2012. (The inventory was 14,134 in November of 2013 and 14,176 in October of 2013.) Year to date for FY 2014, we are closing new cases, on average, in 54 days for the Civil Service Retirement System and 56 days for the Federal Employees Retirement System.

However, while these numbers represent an improvement, we must continue to make progress in retirement processing. This is why I directed the development of a Strategic IT Plan – available on our website – which will bolster IT development in Retirement Services as we continue our transition toward a more automated system.

Q. Customer Service

Federal retirees often tell us they are unable to reach someone at OPM to help them with a problem or to answer a question. They say the toll-free phone number is always busy, and that it can take up to a month to get a response via email.

What is OPM doing to solve this customer service problem?

a. We are fully committed to customer service, and the importance of giving accurate

Q. Employee Morale

According to OPM’s Federal Employee Viewpoint Survey, federal employee job satisfaction was down in 2013. In March, three members of the House Oversight and Government Reform Committee asked the Government Accountability Office to study the morale and effectiveness of the federal workforce. And in May, the Senate Homeland Security and Governmental Affairs subcommittee on the federal workforce held a hearing on employee morale. You have said that you make it a point to call individual federal employees. What are they telling you about how satisfied they are with their jobs? And what is OPM doing to improve employee job satisfaction? a. I regularly call federal employees, and when I talk to them, I ask them about how they like their jobs, and they are very enthusiastic about their jobs. They tell me they are supported by incredible leadership, and they like who they work for and with. I’ve also made it a priority to travel outside of D.C. to meet with federal employees and local Federal Executive Boards (FEBs) to learn about the important work that our federal employees are doing across the country and how we can be the best possible employer.

These men and women continue to push forward, continue to be engaged in their work, and continue to provide excellent service to the American people with the resources they have. Employee engagement is a key priority for President Obama and for me, and there are several things that we are doing to achieve this.

It begins with good leadership.

The Federal Employee Viewpoint Survey (FEVS) for 2014 was completed on June 13.

The results will be available to agencies starting in August. This tool is essential to advancing the administration’s commitment to employee engagement in a high-performing government.

The survey is a way for employees to communicate openly and honestly with federal leaders and is an important part of the president’s Second Term Management Agenda that commits to better engaging with our federal workforce to identify areas where we are succeeding and find places where we can improve.

‘

‘

and timely information. We have added customer service representatives, and we continue to work with federal departments and agencies so they have the most up-to-date retirement processing information that they can provide to their employees as they get ready to retire.

I have also directed my Associate Director for Retirement Services, in partnership with other members of my senior staff, to oversee a review of existing customer resources in order to identify opportunities for improvement. These improvements will include strengthening traditional means of communication and exploring the potential of new media.

Our ability to attract and recruit young Americans into public service is a top priority for me.

To further assist agencies in the identification of areas for improving employee engagement, OPM has developed an interactive Engagement Dashboard. The Dashboard provides senior leaders with information on employee engagement (as measured by the FEVS) and other key HR metrics at a component and subcomponent level, enabling these leaders to target strategies for improvement.

Q. Future Employment

In addition to processing retirement applications for employees at the end of their careers and keeping up the morale and providing services to active federal employees, OPM also works with agencies to recruit new federal employees. What is OPM doing to convince young people that the federal government is a good place to make a career, in the face of the fed-bashing, pay freezes and furloughs of recent years?

a. Our ability to attract and recruit young Americans into public service is a top priority for me. This is why I’ve been working with my

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Q&A with

Katherine Archuleta staff to develop a plan to modernize the way we do recruitment. To ensure the federal government remains competitive in this labor market, federal agencies must attract, hire, develop and retain top talent from all sources. We must use data to do more targeted recruitment and expand our use of social media as a platform to find job seekers. We also are developing stronger partnerships with colleges and universities across the country.

This year, OPM launched an initiative to reach out to diverse colleges and universities to ensure the federal government attracts the top talent needed to tackle our country’s most pressing challenges. I have visited seven colleges and universities around the country, and OPM’s recruiting team has been to 35 campuses to talk to students and faculty about the opportunities in federal service.

In our experience, there is a lack of understanding about the federal hiring process among college students. We are reaching out to students, career counselors and faculty about how to find and apply for federal jobs in USAJOBS.gov. And we’re telling them about the exciting job opportunities available in the federal sector.

Federal agencies are using internship opportunities to maintain interest in the federal government, evaluate new hires and build talent pipelines. In addition, federal agencies looking for young college graduates in science, technology, engineering and math fields attract candidates by highlighting opportunities to work on unique and cutting-edge projects that are only available in the federal sector.

The federal government benefits from a diverse workforce that includes students and recent graduates, who will infuse the workplace with their talents and unique perspectives. We need to speak the language of the young, eligible worker. They do not look at their lifetime’s work as one career. The government offers the opportunity to change jobs under one employer – after all, we are the largest employer in the country.

Q. The Federal Government as Model Employer

You have said that you’d like to see the 28

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federal government as a model employer for the 21st century. Given the fiscal and political realities, it seems as though just the opposite is happening – we are in a race to the bottom. How can we make the federal government a leader again?

a. By doing a better job of showing how great working for the federal government is and what opportunities are available.

Every day when I talk with OPM employees, they tell me that they feel they are doing some really important and interesting things every day. Wherever I go, I talk about the great work federal employees are doing and the difference they are making in people’s lives each and every day.

Federal workers protect the nation’s food supply and the water we drink. They fight forest fires, secure our borders, help budding entrepreneurs get that first business loan and that young student be the first in her or his family to go to college.

We as the federal government need to focus on getting this message out and getting an excited and diverse group of people who lead by example.

We are developing recruitment strategies for that. We need to go out there and talk about what job opportunities are available to them across the federal government. Many people don’t know what happens in the federal government. We also need to communicate with them the way they communicate. We are exploring how we can use social media more effectively. We are also working on making the application process simpler and more accessible. We are working to improve and reinvigorate the USAJOBS website.

It’s not just the millennial generation; we need people of all levels in their career, whether it is at the beginning of their career to start, mid-career to take a break from the private sector, or at the senior executive level to bring their expertise to federal service.

We need to do a much better job of showing people the value of federal service and the great opportunities the federal government provides.

Q. Combined Federal Campaign

The new regulations governing the Com-

bined Federal Campaign (CFC) authorize contributions to the CFC by retired federal employees. Do you have any information on how retired federal employees will be integrated into the campaign?

a. The new CFC regulations allow retirees to make one-time (i.e., check or credit card) contributions by contacting their local CFC office. We do not believe that the Executive Order that created the CFC gave the program the authority to directly solicit federal retirees. However, we are exploring options as to how to have this ability in the future.

General Questions:

Q. the Job So Far

Has anything surprised you in your first six months as OPM director?

a. What surprised me was the number of issues that OPM touches throughout government.

While I clearly understood the HR piece of what we do, what I didn’t realize was how much of what we do here at OPM also affects so much of what happens in government today. From national security to health care to labor issues, not only do we have an impact on the personnel side, but we have an impact on policy as well.

Q. Legacy

If you could accomplish just one thing in your tenure as OPM director, what would that be?

a. There are so many things that I want to accomplish. However, the accomplishment that I would be most proud of, would be to have recruited the most diverse and talented workforce that any director of OPM has ever done. And that will be because we’ve been successful at recruiting incredible talent that reflects the rich diversity of America.

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h c a e br “This … stuff is really sensitive … it’s basically every piece of information you would need to do a full identity theft on any employee or contractor … ”

Those are precisely the words federal employees and retirees don’t want to read. They were part of an Internet Relay Chat conversation of a hacker gloating after allegedly hacking into a federal agency computer system in July 2013 and contemplating exploiting employees’ personally identifiable information (PII).

But the fact that we are reading them is a step in the right direction. The words are from an October 2013 indictment by the U.S. Attorney’s Office in New Jersey of alleged British hacker Lauri Love. Love was indicted for allegedly breaching thousands of computer systems in the

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By David Tobenkin

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United States and elsewhere to steal massive quantities of confidential data from a number of federal agencies. If successfully extradited from the United Kingdom and convicted, Love could face a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, on each of the two counts with which he is charged.

The good news is that after years of hacker break-ins and other data breaches at federal agencies, some perpetrators are being caught, and some are being convicted.

In addition to the indictment of Love, Jenaro Blalock of Clinton, MD, was sentenced in March to 12 years in prison, followed by three years of supervised release, for access device fraud and aggravated identity theft. According to court documents, between June 2011 and July 2013, Blalock and a co-leader recruited individuals with access to identity information through their employers to steal more than 600 identities, primarily belonging to employees of the U.S. Department of State, the U.S. Department of Defense and the U.S. Agency for International Development (USAID).

The bad news is that despite these law enforcement successes there is a growing wave of data breaches, and federal agencies’ efforts to prevent breaches and limit damage when they occur are, by some measures, falling short.

Successful apprehensions like those above remain the exception, rather than the rule, says one cybersecurity expert. “Where they find out who did the breach is a tiny fraction of all the cases,” says Alan Paller, director of research of the Bethesda, MD-based SANS Institute, a cybersecurity training school, and co-chairman of the Secretary of Homeland Security’s Task Force on Cyber Skills, which advises how to train cybersecurity professionals. “And generally in PII breaches, there is no follow-up. Despite pressure to maintain effective logs, many agencies have found they did not have the logs needed to determine what actually happened in a breach.”

Even when perpetrators are caught, sometimes the damage has been done, and federal employees and retirees with compromised PII must live in fear of its future use by criminals. Much will continue to depend on the efforts of federal employees and retirees to remain vigilant to protect their 32

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credit ratings, finances and online identities once data breaches occur.

A Proliferation of Breaches Federal agency data breaches are rising. An April 2014 Government Accountability Office (GAO) study, Federal Agencies Need to Enhance Responses to Data Breaches, released as part of testimony before the U.S. Senate’s Committee on Homeland Security and Governmental Affairs, found that information security incidents involving PII have more than doubled over the past several years. They have risen steadily from 10,481 in fiscal year (FY) 2009 to 25,566 in 2013.

The term “data breach” generally refers to the unauthorized or unintentional exposure, disclosure or loss of sensitive information, including PII. PII is any information that can be used to distinguish or trace an individual’s identity, such as name; date and place of birth; Social Security number; or other types of personal information that can be linked to an individual, such as medical, educational, financial and employment information.

There are two primary aims of malicious data breaches against federal agencies. The first motive is financial gain, either through identity theft or credit fraud using the information gained, or through blackmail or exploitation of nonemployee agency data. The second is espionage, infiltration and/or interference with the organization’s mission.

Among recent agency data breaches, according to the GAO, are the following: • The July 2013 breach that was allegedly perpetrated by British hacker Lauri Love. The GAO report, citing a report by the Department of Energy (DOE) Inspector General, revealed that hackers stole a variety of PII of more than 104,000 individuals from a DOE system. Types of data stolen included Social Security numbers, birth dates and locations, bank account numbers, and security questions and answers.

According to the DOE Inspector General, the combined costs of assisting affected individuals and lost productivity – due to federal employees being granted administrative leave to correct issues stemming from the breach – could be more than $3.7 million.

• The March 2012 theft from a NASA em-

1010010101 0101101001 0100101010 0101001010 101110101101001010101101011010010101010101010 ployee at the Kennedy Space Center of a laptop ally, consumers whose credit card numbers are1010110100 computer containing sensitive PII. As a result, stolen do not end up bearing responsibility for 0101001101 2,300 employees’ names, Social Security numfraudulent charges, although in the case of debit bers, dates of birth and other personal informacards, sometimes fraudulent transactions can 0101010100 tion were exposed. impact your bank account balance temporarily.”

Significantly, many of the federal agency data “The sort of PII that is being stolen from fed1010010101 breaches have involved disclosures of the data of eral agencies is usually used to commit identity federal retirees, which is held by many agencies theft. This can have a bigger impact on indieven after their retirement claim files are sent to vidual victims than credit card fraud, as it can0101101001 the Office of Personnel Management (OPM), as have a negative impact on their credit rating and 0101101011 well as active employees. can sometimes result in harassment from debt And agencies affected by data breaches collectors,” Cross says.

0010101010 include some directly charged with processing Others say that the threat of harm to federal and safeguarding federal employee and retiree employees and retirees is, for the volume of 101001010 benefits. In May 2012, the Federal Retirement PII disclosed, relatively limited. “There’s lots Thrift Investment Board (FRTIB) reported a of damage to agencies from data breaches, but0101011010 sophisticated cyber attack on the computer of a from the bulk theft of personally identifiable contractor that provided services to the Thrift information, only a few cases lead to damage to 0100101010 Savings Plan (TSP), which the FRTIB adminindividuals,” the SANS Institute’s Paller says. isters. As a result of the attack, PII associated 1010100101 with approximately 123,000 TSP participants Inadequate Agency Measures was accessed. According to FRTIB, the information included 43,587 individuals’ names, addresses and Social Security numbers, and 79,614 individuals’ Social Security numbers and other PII-related information. And in July, a data breach of federal employee records at OPM in March 2014 was reported. “At this time, neither OPM nor US-CERT (United States Computer Emergency Readiness Team) have identified any loss of personally identifiable information,” Federal News Radio quoted an OPM spokesperson as stating, though the spokesperson added that an investigation into the incident continues.

Of course, government data breaches are only one part of a much larger trend of data breaches.

Over the past year, retailers Target and Neiman Marcus announced that data breaches compromised the personal data of more than 110 million and 1.1 million customers, respectively.

Yet, unfortunately, federal agency breaches may be more serious than breaches in the retail sector, asserts one expert.

“In the case of Target and Neiman Marcus, credit card numbers were stolen, and they have been used to commit fraud,” says Tom Cross, director of security research for Alpharetta, GA-based Lancope, Inc., which makes network visibility and anomaly detection products that are used by a variety of federal agencies. “Usu-

The GAO’s investigation found that federal agency cybersecurity measures are generally inadequate. Twenty-four major federal agencies examined by the GAO did not consistently demonstrate that they are effectively responding to cyber incidents, the GAO said. Based on a

The sort of PII that is being stolen from federal 101 010 agencies is usually used to commit identity theft. statistical sample of cyber incidents reported in FY 2012, the GAO projected that these agencies did not completely document actions taken in response to detected incidents in about 65 percent of cases. “For example, agencies identified the scope of incidents in the majority of cases, but did not always demonstrate that they had determined the impact of an incident. In addition, agencies did not consistently demonstrate how they had handled other key activities, such w w w. n a r f e . o r g

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10101101000101010011010101010101001010100101 010001 as whether actions to prevent the recurrence of credit monitoring,” says FRTIB spokesperson were taken,” it said.

Weaver. “They subsequently reported no prob0110101 anAincident number of agencies that have suffered lems with misuse of their financial data.” data breaches or received adverse GAO cyber There is no evidence of employee and retiree 010010 security findings have reported taking steps to harm from the July 2013 DOE data breach, improve their information system security.

DOE’s Welch says. “To the best of the Depart1010111 “The FRTIB has taken a number of actions ment’s knowledge, the perpetrator was appreto enhance security at both the FRTIB and its hended prior to releasing, exploiting or selling 100101 contractors,” says FRTIB spokesperson Kim the information, and the individual is coop“Over the past three years, the FRTIB erating with law enforcement,” he says. “The 101101 Weaver. created a formal Information Assurance DiviDepartment is unaware of any exploit [such as sion that is responsible for maintaining an theft or fraud] against affected employ0101010 agencywide information security program for identity ees as a result of the breach.” information and systems that support the And a 2010 Federal Aviation Administration 1010001 the operations and assets of the agency in support (FAA) email to employees regarding a 2009 mission and goals of FRTIB.” malicious data breach that resulted in the com101011 ofAttheDOE, spokesman Tom Welch says data promise of PII of 45,000 FAA employees and improvements include the following: retirees said that there had been no reports of 1010001 security 1. Achieving compliance with recommendaidentity theft. of the DOE Inspector General; Readers of narfe magazine are often vocal 0110101 tions 2. Purchasing a well-known vendor tool that on issues affecting their financial security, and in aggregating data and identifying anoma- many have been subjected to data breaches.

1010010 aids lies that will assist in detecting future attacks Yet, of the more than 50 responses to a reader 11010001 and data breaches, and making an investsurvey asking for comments from employees in improved traffic monitoring to include or retirees affected by federal agency data 00110101 ment encrypted traffic across the Trusted Internet breaches, only a few said they might have been Connection; and to identity theft or fraud related to a data 01010010 3. Developing an information system continu- subject breach.

Not surprisingly, the dominant sentiments 01010111 ous monitoring program. expressed by survey respondents who had sufmuch harm? fered data breaches were anger and unease.

10100101 How How much harm is being caused through “I am concerned that the breach will give exploitation of PII data gained through data others an opportunity of opening credit/loans 10101101 breaches? For some incidents, such as the using my personal information, and then when breaches described earlier at the Dethey aren’t paid, I will be harassed by debt col10101010 Blalock partments of State and Defense and USAID, it is lectors and/or businesses and will be forced to that there is quantifiable harm to victims. use my time and money to prove my innocence,” 01010001 clear Blalock provided information so that a colleague says Grace Crook, who retired in 2002 from the could make fraudulent driver’s licenses bearing the victims’ names, addresses and dates of birth, according to a U.S. Department of Justice statement. The identity theft ring caused victim losses of $1-2.5 million, the statement said.

For a far larger number of data breach events, the harm is less clear. Several federal agencies with notable breaches said that they had not had reports of identity theft or attempted fraud resulting from such breaches.

“We contacted all 123,000 participants [affected by the data breach] and offered them

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Department of Energy and who received notice that the July 2013 DOE data breach had resulted in the disclosure of her name, Social Security number and date of birth. “This could still happen anytime in the future,” Crook says.

The Aftermath for Employees and What They Can Do So what exactly are data breach perpetrators likely to do with the compromised PII? “A criminal that steals PII will somehow try to use it to either open a credit card to purchase

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material goods or obtain a financial loan; for example, it can also be used to file a false tax return,” says Michael Bruemmer, vice president, Experian Data Breach Resolution. “What can be even more detrimental is medical identity theft, as PII can be used to obtain health care services. Besides the financial ramifications, it can be a life-or-death situation if there is wrong information in your medical record, with additions of medications or treatments – even surgeries – that were not provided to you, when you actually go in for a visit.”

Some stolen data may be used immediately by perpetrators to purchase items. Other data is sold in volume to third parties to be exploited by them. The compromised PII also may be used to target the employees or their friends with email phishing schemes in which employees are enticed to disclose personal information themselves, download viruses onto their computers or to visit websites that infect their computers with viruses.

A standard federal agency response to such breaches has been to give free credit monitoring to affected employees for a limited period of time. “A credit monitoring service will inform you about any significant changes to your credit rating,” Cross says. “If fraudulent transactions appear on your credit report, you’ll be able to contest them and get them removed.” An example is ProtectMyID, an Experian service that provides a layered approach to identity protection, and that was offered free for a year to DOE employees affected by that agency’s data breach.

It alerts members to changes that could indicate identity theft so they can take action to protect themselves. Product features include daily credit monitoring, an Internet Scan for members’ personal information, a Fraud Resolution Team and $1 million of identity theft insurance.

It is important for federal agency employees or retirees affected by a data breach to carefully examine the notice from their agency regarding the data breach. “Make sure to follow the instructions,” Experian’s Bruemmer says.

“This includes signing up for the free protection product offered. With the increasing propensity of data breaches today, individuals may receive more than one letter at any given time. Give each letter attention, and even if you already are

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covered by a protection product, go ahead and register for an additional one if offered.”

Employee and retiree vigilance concerning their finances at all times, including before a data breach, is also important. Even if a data breach is detected, often there will be a lag before such detection occurs, before agency defensive or responsive measures are employed, and before those affected by the breach are notified. And while merchants and banks may make adjustments for fraudulent charges, a credit monitoring service or affected employees or retirees must first detect the unauthorized charges.

Employees and retirees should watch for signs that their personal information has been misused. These may include bills that do not arrive on time; unauthorized charges or debits; receiving credit cards they did not apply for; unexpected offers of credit or an increase in the number of offers; being denied credit or reduced credit scores; or being contacted by debt collectors or businesses about merchandise or services they did not buy.

Employees also may wish to consider placing a fraud alert on their credit file. Fraud alerts tell potential creditors that they should take special precautions to verify the identity of the applicant, though such steps can make it more difficult to get new credit while the fraud alert is active. Employees also can order a free annual credit report and examine it for suspicious activity or incorrect information.

In addition to exploitation of valuable data, destruction of data is also a threat from data breaches. Employees should keep copies of all of their important personal documents, such as records in their official personnel file and financial records, ideally in both hard-copy and electronic form, and take care to safeguard both.

More assertiveness on the part of federal employees and retirees also may help. “People should be asking the organizations that they work for or that store data about them what those organizations are doing to protect the data they are storing,” Cross says. “Demand good answers to those questions – it’s not just a matter of personal privacy, it’s a national security issue.”

—David Tobenkin is a freelance writer based in the greater

Washington, DC, area.

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protection. In a unanimous decision, the Supreme Court ruled on June 12 in the case Clark v. Rameker that inherited individual retirement accounts (IRAs) are not protected in bankruptcy under federal law. The ruling should provide an incentive for IRA and retirement plan owners to think long and hard when deciding on the best strategy for passing assets to heirs.

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005, which was designed to make filing for bankruptcy less appealing, provided retirement account owners with a silver lining. Specifically, BAPCPA provided traditional IRAs and Roth IRAs with a cumulative, inflation-adjusted exemption of $1 million (currently $1,245,475) and an unlimited exemption for employer-sponsored plans.

In 2001, Heidi Clark inherited her mother’s IRA, which at the time was worth approximately $450,000. As a nonspouse beneficiary, Clark transferred her mom’s IRA account into a properly titled inherited IRA and began taking minimum distributions as required. In 2010, Clark and

| s e p

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CFP®

ccording to the U.S. Supreme Court, a retirement acteristics of inherited IRAs disqualified them from retireaccount ceases to be a retirement account when

inherits the money – at least for federal bankruptcy

38

By Mark A. Keen,

her husband filed for Chapter 7 bankruptcy and, at the time, the inherited IRA was worth approximately $300,000. Clark sought to protect the account from her creditors using the “retirement funds” exemption of the BAPCPA. The problem for Clark is that BAPCPA does not clearly define what constitutes “retirement funds.” Instead, BAPCPA refers to retirement funds as those that are exempt under various sections of the tax code.

Without a clear definition of the term “retirement funds” in BAPCPA’s language, the bankruptcy trustee in the case challenged the exempt status of Clark’s inherited IRA. Eventually, Clark’s case found its way to the Supreme Court, where the justices ultimately felt the following three char-

ment fund status: • Unlike IRA owners, beneficiaries cannot add money to an inherited IRA. • Beneficiaries must distribute the inherited IRA within five years of the owner’s death or begin taking required minimum distributions, regardless of the beneficiary’s age.

• Beneficiaries may distribute the entire inherited IRA at any time and for any purpose without penalty. By contrast, withdrawals from traditional and Roth IRAs prior to age 59-1/2 carry a 10 percent tax penalty, thus discouraging withdrawals until retirement age.

Absent from the Supreme Court’s decision, however, is whether or not spousal beneficiaries will also lose federal bankruptcy protection for an account they may inherit.

Many experts feel that due to the number of special rules afforded to spousal beneficiaries under the tax code, there is a clear distinction between spouse and nonspouse beneficiaries. This distinction is enough, they say, to provide federal bankruptcy protection under the “retirement funds” status to a retirement account inherited by a spouse.

With that said, however, the Supreme Court’s lack of clar-

FINANCIAL TOOLS NARFE offers an online retirement calculator and other financial planning tools. Find out more at www.narfe.org/ federalbenefits.

ity certainly opens the door for future creditors to challenge a spouse’s ability to claim the exemption from bankruptcy proceedings for an inherited retirement account.

It’s important to remember that the court’s ruling applies to bankruptcy proceedings under federal law and does not prevent a state from enacting its own laws to protect inherited IRAs from the bankruptcy proceedings. In fact, there are

currently seven states (Alaska, Arizona, Florida, Missouri, North Carolina, Ohio and Texas) with varying laws regarding the treatment of inherited IRAs in bankruptcy proceedings that offer some protection from creditors.

IRA owners in the remaining 43 states may want to consider alternatives to naming beneficiaries outright if creditor protection is a concern. For example, a trust may offer creditor protection to an IRA owner’s hard-earned money after the owner has died. IRA owners must proceed with caution, however, and seek expert counsel as the rules pertaining to trusts as beneficiaries are complex and can derail the best plans if not executed properly.

Mark A. Keen, CFP®, is partner, Keen & Pocock, 10300 Eaton place, Fairfax, VA, and an investment adviser representative and registered principal of The Strategic Financial Alliance, Inc. (SFA). Securities and advisory services are offered through SFA. Email: mkeen@keenpocock.com.

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39

The Informed Citizen

Tell us about your advocacy; ask for tools

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our legislative staff – in fact, the officers and entire NARFE staff – communicate with thousands of members electronically every day. However, we are using this publication, the only vehicle to reach all NARFE members, to offer a swap. Tell us about your advocacy efforts (use a separate

piece of paper for your responses, if necessary) and, in return, we’ll send you valuable information to become a better advocate.

Prior offers, anticipating a huge response, required requestors to send a self-addressed stamped envelope. More recent offers removed this requirement. No need to send your self-addressed

Survey of Advocacy 1. Do you receive invitations to town-hall style meetings from your representative? Senator? Have you ever attended a town hall or tele-town hall?...........................................

2. Have you: a) phoned, b) mailed, c) emailed your representative and/or taken other action in this Congress (2013-2014)?................................................................................................

3. Have you: a) phoned, b) mailed, c) emailed either of your senators and/or taken other action in this Congress (2013-2014)? With which of your two senators?....................

4. Do you use “How They Voted” from this magazine or on the website to view the recent and career voting record of your congressional delegation? How would you characterize the NARFE voting record of your representative? Your senators?................................................................................

5. Have you ever sent a Letter to the Editor on a NARFE issue? If yes, to which publication?.................................................

6. Have you ever had a Letter to the Editor published? If yes, which publication?.........................................................................

7. Has a federal legislator ever spoken to your chapter meeting? If yes, which legislator? Which chapter?...............................

8. Has a congressional staffer ever spoken at your chapter meeting? If yes, which staffer to which legislator?

When?............................................................................................................

9. What else should we know about you as an advocate on NARFE issues? (50 words or less)..................................................

........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ...........................................................................................................

40

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By Christopher Farrell, Legislative Representative

stamped envelope to receive the requested advocacy tools unless the mood strikes you.

We invite you to complete the advocacy survey below. When you mail or email your completed survey, please let us know which of the advocacy information listed below you’d like to receive.

Advocacy Tools Offered Select up to three tools: 1. Maps showing congressional districts (National Atlas, GovTrack. us) 2. Google Map to your nearest congressional office (CongressMerge) 3. Profiles of representative/ senators (Politics in America/ Almanac) 4. State-specific Federal Family numbers (Protect America’s Heartbeat Toolkit) 5. NARFE member counts by congressional district for your state (Excel files) 6. Office of Personnel Management 2013 Annuitant Counts by ZIP code (pdf files) 7. House/Senate Vote Scorecard 8.Candidates for Congress (Legislative Action Center) 9.Campaign finance data (Open Secrets/Roll Call) .................................................................

Mail to NARFE Legislative Advocacy Survey, 606 N. Washington St., Alexandria, VA 22314-1914, or email cfarrell@narfe.org.

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Alzheimer’s Update

2014 report tallies Alzheimer’s toll

I

recently read the Alzheimer’s Association’s 2014 “Alzheimer’s Disease Facts and Figures” report. It illustrates, in stark terms, the enormous toll this terrible disease takes on families and

finances. Here are some excerpts from the report that I found particularly noteworthy: Women are at the epicenter of the Alzheimer’s crisis.

• Nearly two-thirds of those with Alzheimer’s disease – 3.2 million – are women.

• Women in their 60s are about twice as likely to develop Alzheimer’s disease over the rest of their lives as they are to develop breast cancer.

• More than three in five unpaid Alzheimer’s caregivers are women – and there are 2.5 more women than men who provide on-duty care 24 hours a day for someone with Alzheimer’s.

All caregivers of people with Alzheimer’s, both women and men, face a devastating toll.

• In 2013, 15.5 million family and friends provided 17.7 billion hours of unpaid care to those with Alzheimer’s and other dementias – care valued at $220.2 billion.

• Nearly 60 percent of Alzheimer’s and dementia caregivers rate the emotional stress of caregiving as high or very high; more than one-third report symptoms of depression.

• Due to the physical and emotional toll of caregiving, Alzheimer’s and dementia caregivers had $9.3 billion in additional health

42

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care costs of their own in 2013.

The number of Americans with Alzheimer’s disease is growing – and growing fast.

• Today, more than five million Americans are living with Alzheimer’s disease, including an estimated 200,000 under the age of 65. By 2050, up to 16 million will have the disease.

• Of Americans age 65 and older, one in nine has Alzheimer’s; one in three people ages 85 and older has the disease.

• Another American develops Alzheimer’s disease every 67 seconds. In 2050, an American will develop the disease every 33 seconds.

The growing Alzheimer’s crisis is helping to bankrupt America.

• In 2014, the direct costs to American society of caring for those with Alzheimer’s will total an estimated $214 billion, including $150 billion in costs to Medicare and Medicaid.

• Nearly one in every five dollars of Medicare spending is spent on people with Alzheimer’s and other dementias.

• Average per-person Medicare spending for those with Alzheimer’s and other dementias is

By Jane rodgers NARFE-alzheimer’s Chair

three times higher than for those without these conditions.

• Average per-person Medicaid spending for seniors with Alzheimer’s and other dementias is 19 times higher than average per-person Medicaid spending for all other seniors.

• Unless something is done, Alzheimer’s will cost an estimated $1.2 trillion (in today’s dollars) in 2050. Costs to Medicare and Medicaid will increase nearly 500 percent.

Alzheimer’s is not just memory loss – Alzheimer’s kills.

• In 2010, 83,494 Americans died from Alzheimer’s, according to the official cause of death listed on death certificates. This makes Alzheimer’s disease the sixth leading cause of death in the United States.

• In addition, in 2010, Alzheimer’s played some role in the deaths of 500,000 Americans. And in 2014, an estimated 700,000 people will die with the disease, meaning they will die after having developed it.

• Deaths from Alzheimer’s increased 68 percent between 2000 and 2010, while deaths from other major diseases decreased.

I am very proud to report that NARFE members are nearing our latest goal of raising $11 million for Alzheimer’s research.

Jane Rodgers is chair of the NARFE-Alzheimer’s National Committee. email: ajrodgers@tds.net.

This column appears quarterly.

JUST RELEASED:

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Actual size is 30.61 mm

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he National Baseball Hall of Fame and the U.S. Mint have just released the FIRST EVER curved American coin. This legal tender half dollar has been struck to honor the 75th anniversary of the National Baseball Hall of Fame and Museum.

First Ever Curved American Coin The coin’s curved design is a first in American history.

The outward curing ‘tails’ side of the coin depicts a baseball—complete with intricate stitching. The inward curing ‘heads’ side of the half dollar reveals a classic leather baseball glove, with the curve perfectly reflecting the natural shape of a weathered and wellloved baseball mitt. Among the celebrity judges who selected this FIRST EVER curved design were Hall of Famers Joe Morgan, Brooks Robinson, Ozzie Smith, Don Sutton, and Dave Winfield. The curved design is like nothing you have ever seen before. You won’t believe it when you hold it!

Going…Going…GONE Public demand for these coins has exploded and a number of versions have already sold out quickly.

The 2014 Baseball Hall of Fame Half Dollar will forever go down in history as a runaway best seller.

But even though the coins are disappearing at record Prices and availability subject to change without notice. Past performance is not a predictor of future performance. NOTE: GovMint.com® is a private distributor of worldwide government coin and currency issues and privately issued licensed collectibles and is not affiliated with the United States government. Satisfaction assured with our 30-Day Guarantee. Facts and figures deemed accurate as of June 2014. ©2014 GovMint.com.

speed, you don’t have to strike out. If you CALL NOW, you can lock in your very own piece of baseball history—not to mention the most unusual American coin ever struck!

Pristine Brilliant Uncirculated Half Dollar Each 2014 Baseball Hall of Fame Commemorative Half Dollar is minted in Brilliant Uncirculated condition and comes in official U.S. Mint packaging, including the official Mint Certificate of Authenticity.

Best of all, you can secure yours today for only $29.95 (plus s/h). Due to overwhelming demand, orders are limited to a maximum of 5 coins. No dealer orders will be accepted. Lock in yours now for estimated delivery at the end of July. Hurry! A sellout is expected at any time.

When you call, ask about the extremely limited Pete Rose autographed edition.

Call toll-free 24 hours a day

1-800-563-6468 Offer Code HOF186-01 Please mention this code when you call.

14101 Southcross Drive W., Dept. HOF186-01 Burnsville, Minnesota 55337

2014

2013

For the Record

Thrift Savings Plan Monthly Returns G FUND

F FUND

C FUND

S FUND

I FUND

AUGUST

0.18%

(0.48%)

(2.89%)

(2.76%)

(1.31%)

SEPTEMBER

0.19%

0.99%

3.14%

5.89%

7.41%

OCTOBER

0.19%

0.89%

4.60%

2.94%

3.38%

NOVEMBER

0.18%

(0.35%)

3.05%

2.49%

0.75%

DECEMBER

0.19%

(0.56%)

2.54%

2.94%

1.51%

JANUARY

0.21%

1.58%

(3.45%)

(1.91%)

(4.03%)

FEBRUARY

0.18%

0.62%

4.58%

5.43%

5.58%

March

0.19%

(0.15%)

0.85%

(0.69%)

(0.57%)

APRIL

0.20%

0.90%

0.75%

(2.47%)

1.51%

MAY

0.20%

1.21%

2.35%

1.52%

1.72%

June

0.19%

0.14%

2.07%

4.45%

0.99%

JULY

0.19%

(0.19%)

(1.37%)

(4.38%)

(1.95%)

YTD

1.36%

4.17%

5.71%

1.56%

3.01%

LAST 12 MO

2.31%

4.67%

17.03%

13.57%

15.45%

10 yr

3.61%

5.25%

7.12%

10.79%

8.39%

L INCOME

L 2020

L 2030

L 2040

L 2050

2014

2013

AUGUST

(0.39%)

(1.22%)

(1.60%)

(1.87%)

(2.11%)

SEPTEMBER

1.12%

2.71%

3.40%

3.90%

4.42%

OCTOBER

1.01%

2.23%

2.75%

3.11%

3.47%

NOVEMBER

0.58%

1.24%

1.54%

1.74%

1.93%

DECEMBER

0.58%

1.25%

1.56%

1.77%

1.98%

JANUARY

(0.42%)

(1.57%)

(2.04%)

(2.35%)

(2.71%)

FEBRUARY

1.15%

2.73%

3.44%

3.94%

4.44%

MARCH

0.19%

0.17%

0.14%

0.12%

0.09%

APRIL

0.31%

0.39%

0.37%

0.32%

0.32%

MAY

0.64%

1.20%

1.46%

1.63%

1.78%

JUNE

0.58%

1.19%

1.52%

1.77%

1.96%

JULY

(0.26%)

(0.97%)

(1.34%)

(1.63%)

(1.86%)

YTD

2.19%

3.12%

3.50%

3.72%

3.92%

LAST 12 MO

5.19%

9.64%

11.57%

12.91%

14.24%

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

44

| s e p

2 0 14

most funds fall on late stock declines Stocks made new highs during July, but resurgent geopolitical tensions, concerns that stocks were overvalued and fears of rising interest rates caused sharp declines at the end of the month.

The C Fund showed a negative return for the first time since January. Smaller stocks (S Fund) led the declines, but even the large companies in the C Fund turned negative when Argentina defaulted on its debt.

Bonds (F Fund) fell as a strong gross domestic product number stoked fears that the Federal Reserve would start letting interest rates rise.

—BY Benjamin Gong, Financial analyst, Thrift Savings Plan

Countdown to COLA

T

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.21 percent in June. To calculate the 2015 cost-of-living adjustment (COLA), the indices of July, August and September 2014 will be averaged and compared with the 2013 third-quarter average of 230.327. The percentage increase, if any, determines the COLA. June’s index, 234.702, is up 1.90 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 2.41 percent higher than the December 2013 base index of 229.174.

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

Month

CPI-W

October 2013

229.735

November December

Monthly % Change

% Change from 230.327

-0.3

-0.26

229.133

-0.26

-0.52

229.174

+0.02

-0.50

January 2014

230.040

+0.38

-0.12

February

230.871

+0.36

+0.24

March

232.560

+0.73

+0.97

April

233.443

+0.38

+1.35

May

234.216

+0.33

+1.69

June

234.702

+0.21

+1.90

July August September

Donate to NARFE Programs Support Alzheimer’s Research Write your chapter number on check; make it payable to: NARFE-Alzheimer’s Research and mail to: Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633

NARFE members contributed for Alzheimer’s research: $11 Million Fund

$10,939,669*

*Total as of June 30, 2014 100% of all contributed funds go to Alzheimer’s research.

Your charitable contribution is tax-deductible to the fullest extent allowed by law.

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

Please circle: Mr. Mrs. Miss Ms. Name: Address: City: State: ZIP: Chapter Number: Credit Card Information:

MasterCard VISA If you have any questions, write to:

Discover AMEX National Committee Chair Card Number: Jane Rodgers, P.O. Box 234 Expiration Date: (mm)/ (yy) Wadesville, IN 47638-0234 3-Digit Security Code: Name: (please print) Email: ajrodgers@tds.net Signature

Join the Silver CIrcle Clip this contribution form and mail to: NARFE Silver Circle, 606 N. Washington St. Alexandria, VA 22314

•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.

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

/

Enclosed is my Silver Circle contribution: $ ID # (ID # may be found on your narfe magazine label or your NARFE membership card)

Name: Address: City: Silver Circle contributions are NOT deductible for federal income tax purposes.

Installment Plan Wall of Fame 12-month installment plan

Give to the Scholarship and Disaster Funds

Please mail coupon and check to: FEEA 3333 S. Wadsworth Blvd., Suite 300 Lakewood, CO 80227

/

All donations go to the NARFE General Fund to support NARFE programs and operations.

State:

ZIP:

My check is enclosed

(Please make check payable to NARFE Silver Circle.)

Please charge my credit card Card type MasterCard VISA

Discover AMEX Card Number: Expiration Date: (mm)/ (yy) Name: (please print)

Signature

Make check payable to: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund.

Date

YES!

Date

/

/

I would like to help with my contribution.

Please check appropriate box(es). To make credit card contributions, call 800-338-0755. Scholarships are available to children, grandchildren and great-grandchildren of federal civilian retirees and current federal employees who are NARFE members.

NARFE-FEEA Disaster Fund

Amount: $

NARFE-FEEA Scholarship Fund

Amount: $

Name: Address: City:

State:

ZIP:

NARFE News

Recruit 1, earn $10

2015 Calendar: It’s a winner!

T

he 2015 NARFE Photo ConMaryBeth Andersen, Rochester, NY, test Winners Calendar is in Ch 124; Linda Armstrong, Danbury, the mail. Photos for the 2016 WI, Ch 1581; Sharon Bahl, Indepencalendar will be accepted until Feb- dence, MO, Ch 1164; Bill Bredengerd, ruary 15, 2015. Contest guidelines Bradford, PA, Ch 1782; Norman are available at www.narfe.org. Log Collin, Port Charlotte, FL, Ch 2194; in, click on “Special Programs” in Jean Curtis, Tucson, AZ, Ch 1874; the left panel, then select “Photo James M. Hamilton, M.D., Colorado Contest Calendar.” For more inforSprings, CO, Ch 241; Thomas Hodgmation, email nattreas@narfe.org. son, Glade Park, CO, Ch 351; Roger Life Membership Apl_New Design 3/26/13 Page 1 The 2015 Calendar winners are: 3:49 PM Hoff, Sutter Creek, CA, Ch 1503;

NARFE will give members $10 for each new member they recruit in September. In addition, these recruiters will be entered into a drawing for a Kindle Fire tablet.

The recruiter’s ID number must be on the application to qualify.

Applications must be postmarked, and calls or website joins must be received, by September 30. The membership form is on p. 48.

Curry Horak, Colorado Springs, CO, Ch 241; John Kumke, Surprise, AZ, Ch 1019; Phyllis Maguire, Burke, VA, Ch 893; Ralph Northrop, Rockville, MD, Ch 1127; Helen Louise Noyes, Herndon, VA, Ch 1241; Robert C. Peterson, Summerville, SC, Ch 1082; Dennis Taylor, Riverside, CA, Ch 188; Agnes Todd, Warner Robins, GA, Ch 1020; Marlene Washburn, Chambersburg, PA, Ch 1063.

NARFE NATIONAL LIFE MEMBERSHIP APPLICATION Life Membership Fee Schedule Ages

Contact Information n Mr. n Mrs. n Miss n Ms. Full Name _____________________________________________ Street Address _________________________________________ Apt./Unit______________________________________________ City _______________________ State _____ ZIP _____________ Phone (__________) ____________________________________ Email_________________________________________________ Date of Birth _________ /_________ /___________________ dd

mm

yyyy

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

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

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

46

| S E P

2 0 14

Single or Quarterly Payment Installments 30-39 $1,796 $450.25 40-50 1,408 353.25 51-55 1,127 283.00 56-60 960 241.25 61-65 801 201.50 66-70 653 164.50 71-75 514 129.75 76-80 392 99.25 81-90 251 64.00 91-100+ 127 33.00

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

PAYMENT INFORMATION n Single Payment or n Quarterly Installments (4 payments) Life Membership fee amount: $ ______________________ PAYMENT OPTIONS n Check or Money Order (Payable to NARFE) n Charge my: n MasterCard n VISA n Discover n American Express Card No. __________________________________________ Expiration Date _________ /_________ mm

yyyy

Name on Card ______________________________________ Signature ____________________________ Date ________ MAIL THIS APPLICATION TO NARFE Member Records 606 N. Washington St. / Alexandria, VA 22314-1914

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Active and Retired Federal Employees ...

JOIN NARFE TODAY!

National Active and Retired Federal Employees Association The only organization dedicated solely to protecting and preserving the benefits of all federal workers and retirees, NARFE informs you of any developments and proposals that affect your compensation, retirement and health benefits, AND provides clear answers to your 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 n YES. I want to join NARFE. n Mr. n Mrs. n Miss n Ms. Full Name ________________________________________ Street Address ____________________________________ Apt./Unit ________________________________________

I am a (check all that apply) n n n n n

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

n Please enroll my spouse

City _______________________ State _____ zIp ________

Spouse’s Full Name ________________________________

phone (__________) _______________________________

Spouse’s Email ____________________________________

Email____________________________________________

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.

Choose Your Membership Type o eNARFE Chapter Online Membership – $40 NARFE’s electronic chapter. Receive narfe magazine by mail each month, and all other communications by email and on eNARFE.org. Get important updates and legislative action alerts, and have access to the eNARFE blog.

OR

o Local Chapter Close-to-Home Membership – $40*

PAYMENT OPTIONS n Check, Money Order or Bill pay (payable to NARFE) n Bill me (NARFE membership will start when payment is received.) n Charge my: n MasterCard n VISA n Discover n American Express Card No. _____________________________________ Expiration Date _________ /_________

Affiliation with the NARFE chapter closest to your home.

Receive narfe magazine each month; attend meetings, often with invited speakers; network; and get involved in grass-roots lobbying efforts.

Name on Card _________________________________

Chapter Affiliation: Chapter # __ __ __ __(if known, otherwise enroll me in the chapter closest to my zIp code).

Date _________________________________________

*First-year dues. Subsequent years, $40 plus local chapter dues.

Total Dues $40 First-Year Dues X __________ = __________ per person # Enrolling Total Dues

mm

yyyy

Signature _____________________________________

MAY WE THANK SOMEONE? If applicable, please provide the name, membership and chapter number of the member who introduced you to NARFE: Recruiter’s Name __________________________________ Recruiter’s Membership ID __________________________ Recruiter’s Chapter Number _________________________

MAIL THIS APPLICATION TO NARFE Member Records / 606 N. Washington St. / Alexandria, VA 22314-1914

NARFE’s Dues Withholding Program What is dues withholding?

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

How does it work?

One-twelfth of your total dues is automatically deducted from your monthly annuity. Your monthly deduction is determined by the following formula: (National dues ÷ 12) + (Chapter dues ÷ 12) = Total Monthly Deduction

Advantages • Save 15% off your annual membership dues!

• Sign up your spouse and double your savings!

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

• Your monthly payment is affordable and convenient!

• You may cancel your dues withholding at any time!

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

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

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

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

Social Security Number (9-digit number)

–

Civil Service Annuity Number

–

C S

–

–

–

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

n Mr. n Mrs. n Miss n Ms. Full Name _______________________________________

NARFE MEMBERSHIP INFORMATION

Street Address ___________________________________

NARFE Membership ID ____________________________________

Apt./Unit________________________________________

NARFE Chapter Number____________________________________

City _________________________ State _____ ZIP _____

n YES. I Also Authorize My (NARFE Member) Spouse’s Dues To Be

Phone (__________) ______________________________ Email ___________________________________________ Date of Birth _________ /_________ / ____________________ dd

mm

yyyy

Withheld From My Annuity. (Additional annual dues of $34 plus Chapter dues of record to be withheld annually.)

If YES, enter spouse’s information below.

Spouse’s Name ___________________________________________ Spouse’s Membership ID ___________________________________

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

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

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

Signature of Annuitant or Survivor-Annuitant

Date

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

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

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Member Perks

NARFE Member Perks

are designed to provide NARFE members with a quality option in their search for commonly used products and services.

NARFE makes no guarantee on any products and services listed, and encourages its members to shop and compare before making a decision on any financial matter.

Credit Union

NARFE Premier Federal Credit Union 800-328-1500 www.NARFEpremierfcu.org 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 the number above, email jparish@narfepremierfcu.org or visit the website.

insurance

NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed and administered by Mercer Health & Benefits Insurance Services, LLC, 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 the website for more information on these programs.

GEICO 800-368-2734 NARFE members with good driving records may be eligible for quality au-

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tomobile 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.

Federal Long Term Care Insurance Program 800-LTC FEDS www.LTCFEDS.com Make long-term care insurance part of your retirement plan. With benefits designed specifically for the federal family, the Federal Long Term Care Insurance Program offers a smart way to help protect savings and assets, and remain independent should you need long-term care services someday. Start planning for the future. Visit www.LTCFEDS.com today.

Vacation rentals

Government Employees Travel Opportunities® 877-867-3639 www.getravelop.com/narfe Offers government employees, retirees and their families 7-night stays for only $349 on accommodations at popular destinations worldwide.

Book online and save on your next vacation stay.

hotels

Choice Hotels International 800-258-2847 www.choicehotels.com 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.

Wyndham Hotel Group 877-670-7088 As a member of NARFE, you will receive up to 20% off the “Best Available Rate” at participating locations.

Call and give the agent your special discount ID number, 8000002694, at time of booking to receive discount.

Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now.

Call our special member-benefits hotline 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®.

car rentals

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-CARRENT® and reference Contract ID 5282909.

Alamo

mention you are a NARFE member and ask for Todd.

Wheaton World Wide Moving 800-248-7960 www.narfe@wvlcorp.com At Wheaton, we know interstate relocating is much more than trucks and boxes. Moving is not simply an address change. It’s a life change.

With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation. We offer you, as a NARFE member, benefits to help you have a positive interstate relocation experience. Call Angela and mention you are a NARFE member to start the moving process.

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

The employees/owners of Avis offer guaranteed low rates and quality services to members of NARFE. Call 800-331-1441 and mention ID# A991900.

Moving services

Bekins Van Lines 800-248-4810 www.narfe@bekins.com All NARFE members will receive contracted pricing for all interstate shipments. This will apply to packing, transportation and full-value coverage against damages. In addition, Bekins Van Lines can assist with instate shipments, local moves and international moves with competitive pricing and quality service. Please

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 the number above and give the operator code number BKHN075 or visit the website. Coverage may vary and may not be available in all states.

narfe merchandise emergency services

Avis

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.

MASA 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!

health screening

Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE

NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.com As the official provider of NARFE merchandise, the NARFE General Store offers NARFE-approved name badges, business cards, customizable logo products and plaques. Check out our online catalog.

NOT A MEMBER? GO ONLINE: It’s easy to join online at www.narfe.org. Click “Join NARFE.” TURN TO PAGE 48: Fill out the Membership Application and mail it to NARFE to receive all the perks of being a NARFE member.

Call (Toll-Free) 800-627-3394.

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The Way We Worked

gumshoes in Snowshoes

Did you know?

In this photo taken in 1956 in northern Minnesota, two U.S. Border Patrol Agents on snowshoe patrol use “signcutting� techniques in an investigation of suspected illegal activity. Sign cutting is the detection and interpretation of marks, tracks and other evidence left behind by moving people and animals. Today, the Border Patrol uses a variety of modern surveillance technologies along the nation’s borders, but many agents still employ traditional sign-cutting methods on patrol.

Photo courtesy of Ijah Wilson, U. S. Citizenship and Immigration Services History Office and Library; in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. Website: http://shfg.org/shfg/.

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The U.S. Border Patrol was established in 1924 following passage of the 18th amendment to the Constitution prohibiting the import, manufacture or sale of alcoholic beverages, as well as the enactment of laws putting numerical limits on immigration. In 2003, it became part of Customs and Border Protection, under the newly created Department of Homeland Security.

We’re In The Business Of Saving You More.

NARFE members could save even more on GEICO auto insurance with a special discount!

Plus, every quote helps support NARFE.

a subsidiary of berkshire hathaway inc.

geico.com/fed/narfe 1-800-368-2734 | Local Office Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. Discount amount varies in some states. One group discount applicable per policy. Coverage is individual. In New York a premium reduction may be available. GEICO is a registered service mark of Government Employees Insurance Company, Washington, D.C. 20076; a Berkshire Hathaway Inc. subsidiary. GEICO Gecko image © 1999-2014. © 2014 GEICO

Tan

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