October 2017 NARFE magazine

OCT

’17

P.32

TIME FOR MEDICARE? TIME TO RE-EVALUATE FEHBP! Volume 93 • Number 10

COVER STORY

THE GREAT PAY DEBATE

Are Federal Employees Paid Too Much, Too Little or Just Right?

P.24

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

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Beltone is an independent company providing discounts on hearing aids.

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

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

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

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WASHINGTON WATCH

6

Budget Takes Center Stage This Fall

7

House Defeats Use of Holman Rule

8

Storytelling: A Powerful Tool for Advocacy

9

Taxpayer-Funded Pension Disclosure Act

10

Federal Employee Pension Fairness Act

12

NARFE Bill Tracker

COLUMNS

24

4

COVER STORY THE GREAT FEDERAL EMPLOYEE PAY DEBATE. Is the federal workforce paid too much, too little or at just the right level? The answer depends on who you ask.

From the Executive Director

46 Managing Money

DEPARTMENTS

16 Questions & Answers 48 For the Record:

32

MEDICARE & FEHBP: What’s the best decision for you? Explore the pros and cons of each option.

56 The Way We Worked

VISIT US ONLINE AT:

SPECIAL SECTIONS

www.narfe.org

42 Open Season: What To Expect

LIKE US ON FACEBOOK:

FOLLOW US ON TWITTER:

@narfehq

50 NARFE News: 2018

Balloting Information, NARFE Committees

On the Web

NARFE National Headquarters

TSP Returns, Retirement Claims Status, Countdown to COLA

ON THE COVER

Illustration by GRAPHEK W W W. N A R F E . O R G

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OCTOBER 2017 | Volume 93 | Number 10

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

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

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

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

NATIONAL OFFICERS RICHARD G. THISSEN, President; natpres@narfe.org JON DOWIE, Secretary/Treasurer; natsectreas@narfe.org EXECUTIVE DIRECTOR BARBARA SIDO, execdir@narfe.org

REGIONAL VICE PRESIDENTS

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

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

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

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

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

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

HERE’S HOW TO CONTACT US…

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

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

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

TO REACH A FEDERAL BENEFITS SPECIALIST:

EMAIL fedbenefits@narfe.org NARFE HEADQUARTERS

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

www.narfe.org

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

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From the Executive Director

KEY DATES TO REMEMBER

F

all is an important time on the federal employee and retiree calendar with several key dates

to remember. This year’s Open Season is November 13 to December 11, 2017.

This is a time when federal employees can make changes to their health, dental and vision coverage or enroll in a Flexible Spending Account. Yet, only about 5 percent of all eligible federal employees or retirees make a change.

Don’t make a decision through inaction. Open Season is a time to assess your health care needs over the coming year – and whether your current plans are meeting your needs and your budget.

Take the time to do due diligence.

Throughout Open Season, NARFE will guide you through the key decision points and the many options, providing you with information and resources to help you make the best decision for the coming year. Coverage kicks off this month with an overview of Open Season and

information about changes that the Office of Personnel Management is requesting of health insurance carriers to address the health care needs of federal employees. In November and December, you’ll find health, vision and dental plan premium rates, FAQs and other information. These topics will be discussed in greater detail in two webinars offered by the NARFE Federal Benefits Institute. In October, federal benefits expert Tammy Flanagan will explore “FEHBP and Medicare – What’s Best for You?” and in November she will discuss “Health Plans: Discover your BEST Option.” These webinars also feature an hour-long Q&A so that you can get your specific questions answered.

RECRUIT & WIN NARFE’s fall Membership Drive began on September 1 and runs through December 31. Members can earn $10 for each new member they recruit – current federal employees and retirees qualify. To do so, the recruiter’s ID number must be provided when the new member joins. Recruiters also will be entered once for each recruit for the grand prize drawing for an Apple Watch.

Recruiters also will be entered into a monthly price drawing of a $25 Amazon gift card.

Check out the many NARFE resources available to you for recruitng and during Open Season, and let prospective members know too!

BARBARA SIDO NARFE EXECUTIVE DIRECTOR execdir@narfe.org 4

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at your fingertips. From the moment you open the box, you’ll realize how different the WOW Computer is. The components are all connected; all you do is plug it into an outlet and your high-speed Internet connection. Then you’ll see the screen – it’s now 22 inches. This is a completely new touch screen system, without the cluttered look of the normal computer screen.

The “buttons” on the screen are easy to see and easy to understand. All you do is touch one of them, from the Web, Email, Calendar to Games– you name it… and a new screen opens up. It’s so easy to use you won’t have to ask your children or grandchildren for help. Until now, the very people who could benefit most from E-mail and the Internet are the ones that have had the hardest time accessing it. Now, thanks to the WOW Computer, countless older Americans are discovering the wonderful world of the Internet every day. Isn’t it time

you took part? Call now, and you’ll find out why tens of thousands of satisfied seniors are now enjoying their WOW Computers, emailing their grandchildren, and experiencing everything the Internet has to offer. Call today!

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Washington Watch

BUDGET TAKES CENTER STAGE THIS FALL

T

he House of Representatives fled Washington, DC, on July 29, with the Senate following shortly thereafter on August 3, for a five-week hiatus referred to as the district

work period. In their wake was a number of pressing issues and unfinished business awaiting their return after Labor Day.

In a “normal” year, the congressional budget practice is an orderly decision-making process with a clear schedule. The president submits a budget proposal in the winter. In spring, the House and Senate agree to a budget blueprint, or budget resolution, with guidance to appropriators who move the 12 annual appropriations during the summer. In autumn, just as the fiscal year begins, Congress completes the appropriations process and a reconciliation process to bring spending and revenues into compliance with the budget plan.

NOT A NORMAL YEAR 2017 has not been a normal year.

The president’s full budget wasn’t released until late May, although not uncommon for a new admin6

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istration. Disagreements among committee members on funding levels meant the House Budget Committee didn’t consider a budget until mid-July, and as of press time, the Senate Budget Committee had yet to release a blueprint.

The House Budget Committee voted the fiscal year 2018 budget resolution out of committee on a party-line vote on July 20. The measure included $32 billion in reconciliation savings within the ACTION ALERT!

jurisdiction of the House Committee on Oversight and Government Reform, which will ultimately decide how the $32 billion in savings will be found. Specifically, this could mean an increase in retirement contributions for active federal employees or the elimination of the special retirement supplement for those Federal Employee Retirement System (FERS) retirees who are eligible to retire before they are eligible for Social Security, among other options.

BUSY FALL AGENDA Upon their post-Labor Day return, lawmakers will have roughly three weeks to pass 12 appropriations bills before the new fiscal year begins on October 1. If not,

OCTOBER

Send a message to your legislators opposing harmful proposals in the fiscal year 2018 budget that disproportionately affect the federal community. Use NARFE’s Legislative Action Center to raise your voice in opposition to cutting your earned pay and benefits! Take action at www.narfe.org/legislation/ votervoice.cfm.

HOUSE DEFEATS USE OF HOLMAN RULE

T

he House defeated the first attempt this year to use the Holman rule by a vote of 116-309. Under the Holman Rule, an amendment may be offered during floor debate on an appropriations bill to do any of the following: reduce the number of employees within a federal agency; reduce the salaries of those employees, or even a single employee’s salary; or, eliminate one particular federal position.

Rep. Morgan Griffith, R-VA, of-

fered an amendment to a four-bill appropriations minibus, which would have abolished the nonpartisan Congressional Budget Office’s (CBO) 89-employee budget analysis division.

NARFE stands against the use of the Holman rule, which was last used in the 1980s, and lobbied for its removal from the House rules package. The rule could be used to make federal employees the scapegoats of partisan fights. In this case, supporters of the amend-

ment disagreed with the methods used by the CBO to score legislation that would have repealed the Affordable Care Act. Rather than pursue legislation to reform CBO methods and procedures, the amendment sought to terminate the employment of dedicated public servants who were simply doing their jobs.

Hopefully, the resounding failure of this amendment will serve to prevent its use in the future.

(Budget continued from p. 6)

is not dependent on any sidebar agreement on fiscal discipline or a budget deal. The debt limit actually was reached in April 2017 and Treasury Department officials have resorted to extraordinary measures to pay the government’s bills.

This included temporarily tapping into the Thrift Savings Plan’s G Fund assets in exchange for an IOU to be repaid once borrowing authority is renewed.

Congress does best – punt! Prior to the start of the new fiscal year, don’t be surprised if the House and Senate agree to a continuing resolution to keep federal agency lights on through Thanksgiving or even New Year’s Eve. The public debt limit could come along for the ride in a similar extension. It is up to NARFE members to keep federal employee pay and retirement benefits out of the mix. Use NARFE’s Legislative Action Center to send that message today.

lawmakers may pass a continuing resolution, a stopgap measure which funds the government at the previous year’s levels, or face a government shutdown. Lawmakers also will have to complete the fiscal year 2018 budget resolution in order to provide for a reconciliation bill tied to tax reform. The importance of passing tax reform legislation is now elevated on the congressional agenda with health reform stalled.

Also on the docket: another must-pass bill with a late September deadline is legislation to raise the ceiling on the public debt limit.

Those responsible for the allocation of tax dollars and management of federal government finances as well as congressional Democrats have called for a “clean” debt ceiling increase, devoid of politics, that

THE LIKELY OUTCOME The most likely outcome? What

—BY JOHN HATTON, DEPUTY LEGISLATIVE DIRECTOR

—BY ALAN LOPATIN, LEGISLATIVE COUNSEL

CFC SEASON BEGINS IN OCTOBER The Combined Federal Campaign (CFC) pledge season will begin a month later than usual this year, running from October 2, 2017, through January 12, 2018. The announcement was made following the press date for the September issue of narfe magazine. The delay will give local CFC zones more time to incorporate changes that go into effect this year. During CFC season, the federal community can make donations in support of eligible nonprofit organizations.

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

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Washington Watch

STORYTELLING: A POWERFUL TOOL FOR CONNECTING WITH YOUR LEGISLATOR

E

very NARFE member has a story to tell about their experience working as a federal employee. What makes NARFE members’ meetings with their legislators memorable is not just the statistics they share, but rather their personal stories and experiences about how they would be personally affected if a piece of legislation were to pass.

When formulating your own story, speak to the values, district demographics and experiences of the individual member of Congress. In congressional meetings and events, your role as a NARFE member is to humanize an issue to help the legislator understand the impact legislation would have on their constituents. You can be a catalyst for change if you structure your messaging in a personal and memorable way.

MAKE IT MEMORABLE The foundation of your message should be structured around what you did as a federal employee and how NARFE ensures the federal community has the resources to do that important work. Use the Talking Points document in the Grassroots section of the NARFE website to highlight NARFE’s position on specific legislation.

Then, frame a story about your experiences that is specific to a legislator. By using the information you know about the legislator, you will enhance your ability to share a story that engages the legislator and staff on a deeper level. Your story also should

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highlight any similar experiences with the legislator, such as previous government work, to build their connection to the issue.

Another important aspect of successful storytelling is ensuring your personal story is easy to remember, simple to articulate and reduced to the core elements of NARFE’s mission. If your story is simple, it will be more memorable. If you articulate the key reasons why you oppose or support the legislation at hand, you provide a compelling perspective for the legislator and staff to consider.

TALK ABOUT IMPACT Make a bigger impact by highlighting how legislative proposals would affect the legislator’s district or state. Emphasize that the legislator’s support or opposition will directly affect those in that district or state, and that the legislator has an opportunity to protect constituents by supporting NARFE’s stance on the issue. Your state’s Federal Family Fact Sheet, located on the Legislation page of the NARFE website, has useful supporting data. This fact sheet also makes great “leave behind” material during your meeting.

PRACTICE YOUR MESSAGE It takes practice to craft a compelling message that hits key legislative points and has emotional impact. Take the time to edit and revise your story until it contains these elements – it speaks to the values, district demographics and experiences of

the legislator. NARFE’s Legislative Department can offer guidance or tips in developing your story; contact leg@narfe.org.

—MOLLY CHECKSFIELD, GRASSROOTS PROGRAM

MYTH vs.

REALITY MYTH: Cost-of-living adjustments (COLAs) for federal retirees are determined in the same manner as pay raises are for federal employees.

REALITY: COLAs and pay raises are determined differently, as they are intended to serve different purposes. Yearly federal retiree annuity COLAs are provided under an automatic formula using the Bureau of Labor Statistics’ CPI-W. To calculate the COLA, the indices of July, August and September are averaged and compared with the third quarter average of the last year in which a COLA became effective.

The percentage increase, if any, determines the COLA. Congress and the president do not have to authorize or determine the COLA. The goal of a COLA is to help retirees’ annuities keep pace with inflation.

Meanwhile, pay raises for federal employees must be authorized and determined

by Congress or the president on a yearly basis. Pay raises are provided to employees to ensure their pay remains competitive with privatesector pay.

TAXPAYER-FUNDED PENSION DISCLOSURE ACT RAISES CONCERNS

T

he Taxpayer-Funded Pension Disclosure Act, H.R. 3200, which was introduced by Rep. Ron DeSantis, R-FL, has many NARFE members rightfully concerned. Under the legislation, pension information of retired federal employees would be made available to the public through the Freedom of Information Act (FOIA). This pension disclosure would affect retired members of Congress, their staff and the rest of the federal community.

If this bill were to pass, the full name, last place of employment,

Pension information of retired federal employees would be made available to the public. grade and monthly annuity of federal retirees would be available to the public via a FOIA request. In addition, the following information would be made publicly available: total annuity contributions, total reported wages, service credits, most recent position and retirement date.

In a press release, Rep. DeSantis said, “Americans should know exactly how their taxpayer dollars are used to fund the pensions of members of Congress and other federal bureaucrats.”

NARFE opposes this bill and has grave concerns that the bill fails to mention that federal employees paid into their pension system.

Additionally, it would likely add fuel to the rhetoric of overly generous pensions and prompt a call for ending them. This information also could be used to attempt to scam our nation’s seniors.

—ROSS APTER, LEGISLATIVE ASSOCIATE

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

q $25/month

OR

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

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

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

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

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

ZIP: _______________

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

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

q VISA

q Discover

q AMEX

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

yyyy

Name on Card: _________________________________________ Signature: _____________________________________________ Date: _________________________

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

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Washington Watch

FEDERAL EMPLOYEE PENSION FAIRNESS ACT WOULD ROLL BACK CONTRIBUTIONS

L

egislation that would repeal two recent increases in federal employee retirement contributions was introduced in the House. The Federal Employee Pension Fairness Act, H.R. 3269, introduced by Rep. Anthony G. Brown, D-MD, would return most federal employee retirement contributions to the pre-2013 level at 0.8 percent.

Beginning in 2013, new federal employees were mandated to pay more toward their retirement than previously hired colleagues, without any increase in benefits. Those hired in 2013 pay 2.3 percent more, and those hired in 2014 and beyond pay 3.6 percent more than those hired prior to 2013. Over 10 years, these increases in retirement contributions will amount to

“Congress cannot continue to squeeze these middle-class, hardworking public servants to try and balance the budget.”

—Rep. Anthony G. Brown a $21 billion loss in take-home pay for these federal employees, and much more thereafter.

In introducing the legislation, Rep. Brown said, “Federal employees are essential to making the government work for Americans across our diverse nation. Congress cannot continue to squeeze

these middle-class, hardworking public servants to try and balance the budget.”

Specifically, the bill would return federal employee retirement contribution levels to 0.8 percent by repealing sections of the Middle-Class Tax Relief and Job Creation Act of 2012 and the Bipartisan Budget Act of 2013.

NARFE supports this bill as legislators should not treat federal employee pay as a piggy bank to fund other congressional spending priorities. Such practices inhibit the federal government from recruiting and retaining the nation’s best and brightest, undermining the ability of our government to serve the American people.

—ROSS APTER, LEGISLATIVE ASSOCIATE

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

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

Only $20

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

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

o VISA o Discover o AMEX

Card # __________________________________________________________________ Exp. Date

_______ (mm)

/ _______ (yy)

Name on card (print) ______________________________________________________ Signature ____________________________________________ Date _____________

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

Please allow 2-3 weeks for delivery.

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

10

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CONTROL WHAT YOU CAN. INSURE WHAT YOU CAN’T.

The road of life will always have its twists and turns, but you can still plan on the straight and narrow.

The high cost of a hospital stay and the expense of home recovery afterward, because of an unexpected injury or illness, can exhaust your personal and retirement savings and put a major detour in your future plans.

The NARFE Hospital Income and Short Term Recovery Insurance Plan helps you protect the savings you’ve worked so hard for. This plan allows you take control of the wheel by paying you, or anyone you choose, cash benefits to use as you see fit to help control your health care choices, maintain self reliance, and receive the level of care you deserve.

• In-Hospital cash benefits paid to you starting the first day you’re Hospitalized for a covered Injury or Illness.

• At-Home cash benefits paid to you as soon as Medicare approves post-Hospital home recovery treatments your doctor recommends.

• Cash benefits paid in addition to any other coverage you may have, and you can use the money however you choose.

• Coverage cannot be canceled because of your health or your age.

• Economical group rates specifically negotiated

by NARFE for our members.

NARFE Hospital Income and Short Term Recovery Insurance Plan: Available to NARFE Members and spouses age 65 and older with guaranteed acceptance.* To learn more or enroll in the NARFE Hospital Income and Short Term Recovery Insurance Plan, Call 1-800-233-5764 or visit us at www.narfeinsurance.com Request Number 078583-1-1-1

*This policy is guaranteed acceptance, but it does contain a Pre-Existing Conditions Limitation.

All benefits are subject to the terms and conditions of the policy. Policies underwritten by Hartford Life and Accident Insurance Company detail exclusions, limitations, reduction of benefits and terms under which the policies may be continued in full or discontinued.

Plans may vary by state.

The Hartford® is The Hartford Financial Services Group, Inc., and its subsidiaries, including issuing company Hartford Life and Accident Insurance Company.

Hospital Income Plan Form Series includes SRP-1151, or state equivalent.

Program Administered by Mercer Health & Benefits Administration LLC

AR Insurance License #100102691 CA Insurance License #OG39709 In CA d/b/a Mercer Health & Benefits Insurance Services LLC 78583 (10/17) Copyright 2017 Mercer LLC. All rights reserved.

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

WHAT BILL WOULD DO

H.R. 756: Postal Service Reform Act of 2017 / Rep. Jason Chaffetz, R-UT Cosponsors: 9 (D), 7 (R)

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

Enrollment would be automatic.

Approved by the House Committee on Oversight and Government Reform; pending in two other committees narfe, June 2017

H.Res. 15: As a resolution, it will not be sent to the president and, therefore, cannot become law/ Rep. Sam Graves, R-MO Cosponsors: 174 (D), 58 (R)

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

Referred to the House Committee on Oversight and Government Reform

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

Referred to the House Committee on Oversight and Government Reform

Referred to the House Committee on Oversight and Government Reform

Cosponsors: 184 (D), 56 (R)

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

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

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

Referred to the House Committee on Oversight and Government Reform

POSTAL REFORM H.Res. 31: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. Dave McKinley, R-WV Cosponsors: 156 (D), 42 (R) H.Res. 28: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. Susan Davis, D-CA

LATEST ACTION(S)

Cosponsors: 67 (D), 1 (R)

FEDERAL COMPENSATION

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

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 7 (D), 0 (R)

narfe, April 2017

H.R. 3269: Federal Employee Pension Fairness Act of 2017 / Rep. Anthony G. Brown, D-MD Cosponsors: 25 (D), 0 (R)

TAXES

H.R. 2929: Federal Employee Combat Zone Tax Parity Act / Rep. Rob Wittman, R-VA Cosponsors: 5 (D), 1 (R)

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Repeals laws passed in 2012 and 2013 that increased the Federal Employees Retirement System contributions for newly hired federal employees.

Referred to the House Committees on Oversight and Government Reform and Foreign Affairs See story, p. 10

Extends the tax credit Referred to the available to military personnel House Committee on who serve in combat zones Ways and Means to civilian employees. narfe, September 2017

NARFE’s Position:

Support

Oppose

No position

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

ISSUE

COLA

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

LATEST ACTION(S)

H.R. 1251: CPI-E Act of 2017 / Rep. John Garamendi, D-CA

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

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

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

Approved by the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 38 (D), 1 (R)

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

Cosponsors: 1 (D), 0 (R) H.R. 3031: TSP Modernization Act of 2017 / Rep. Elijah E. Cummings, D-MD Cosponsors: 3 (D), 2 (R)

HEALTH CARE

DC STATEHOOD

Approved by the House Committee on Oversight and Government Reform narfe, September 2017

H.R. 1408: Access to InsurRepeals the Affordable Care Referred to nine ance for All Americans Act / Act and establishes a national House committees Rep. Darrell E. Issa, R-CA health program administered by the Office of Personnel Cosponsors: 0 Management to offer Federal Employees Health Benefits Program plans to individuals who are not federal employees or retirees. The bill would place non-federal participants into the federal employee risk pool.

H.R. 1291: Washington, DC Admission Act / Del. Eleanor Holmes Norton, D-DC Cosponsors: 136 (D), 0 (R) H.R. 1205: Social Security Fairness Act of 2017 / Rep. Rodney Davis, R-IL

GPO/WEP

narfe, May 2017

Cosponsors: 111 (D), 37 (R)

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

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

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

Referred to the House Committee on Ways and Means

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

narfe, May 2017 Referred to the Senate Committee on Finance

Cosponsors: 4 (D), 3 (R), 1 (I)

BUDGET

H.Con.Res. 71: House Concurrent Budget Resolution for Fiscal Year 2018/ Rep. Diane Black, R-TN Cosponsors: 0

Establishes the congressional budget for fiscal year 2018 and sets forth the budgetary levels for fiscal years 2019 through 2027. Instructs the House Committee on Oversight and Government reform to find at least $32 billion in savings.

Approved by the House Budget Committee

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

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13

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The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under FEP or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your FEP benefits first. To find out what is covered under your policy, contact FEP. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. These items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to FEP’s Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the FEP, BCBSA, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The FEP reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time.

All content ©2016 TruHearing, Inc. All Rights Reserved. TruHearing® is a registered trademark of TruHearing, Inc. All other trademarks, product names, and company names are the property of their respective owners. Savings based on a survey of national average retail hearing aid prices compared to average TruHearing pricing. Actual customer savings will vary. Three follow-up visits must be used within one year after the date of initial purchase. ‡ Forty-five day money-back guarantee and hearing aid returns, repairs, and replacements subject to provider and manufacturer fees. For questions regarding fees, contact TruHearing customer service.

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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 ANNUITY FOR RE-EMPLOYED ANNUITANT

Q

I retired under the Civil Service Retirement System (CSRS) but returned to federal service as a re-employed annuitant. Will my annuity be reduced because I am now an employee?

A

As an annuitant who is re-employed as an employee, generally you will continue to receive the annuity while you are working.

Your salary will be reduced by the amount of the annuity that applies to the period of reemployment. If you retired under CSRS, this would be your coverage if the position is covered and you have retirement deductions withheld or later pay the deductions. If you do not work full time, the reduction in pay will be adjusted proportionately. However, some pay is not subject to this reduction for annuity. Pay is not reduced for annuity for a period during which you have elected to 16

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receive injury compensation benefits in lieu of an annuity or when you receive a lump-sum payment of annual leave upon separation. There also are some waiver programs.

PROOF OF WEP EXCLUSION

Q

What is the best proof recommended to submit to the Office of Personnel Management (OPM) once I retire to document that I am excluded from the Windfall Elimination Provision (WEP)?

A

If you are an employee hired on or after January 1, 1984, you are covered

under the Federal Employees Retirement System (FERS).

Your official personnel records will reflect your service date of employment. This documentation will indicate you are not subject to the WEP.

SURVIVOR BENEFIT ELECTION

Q

I plan to retire at the end of the year under the Civil Service Retirement System (CSRS). I’ve received conflicting information about the election of survivor benefits.

I was advised that the survivor benefits would be from 55 percent to 75 percent. Has there been a change that I am not aware of?

A

The maximum possible survivor annuity is 55 percent of the annuitant’s annuity before it is reduced by the

cost of the survivor benefit, or the unreduced annuity. This amount generally will be 60 percent of the annuitant’s current gross annuity.

The survivor annuity can be less than 55 percent if the annuitant elected to provide less than the maximum survivor benefit. The spousal survivor benefits are not 75 percent.

LOCALITY PAY FACTORED INTO ANNUITY

Q A

Will the locality pay that I am currently receiving be factored into my annuity calculation?

Whether you are under the Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS), your retirement annuity is determined by your length of service and your highthree salary. The high-three salary includes locality pay as well as environmental pay and night differential if you are a Wage Grade employee.

FEHBP BENEFITS FOR SURVIVORS

Q

If someone is under the Civil Service Retirement System (CSRS) and takes $1 out of his or her retirement annuity for the spouse’s annuity, would the spouse still receive the same Federal Employees Health Benefits Program (FEHBP) coverage as the spouse would receive if he or she took out the 55 percent spouse’s annuity?

A

Yes. The survivor would still have the same FEHBP coverage as the survivor would receive under a full survivor election. An election to use $1 as the base for reduction will allow a surviving spouse to continue FEHBP coverage if the annuity had family coverage at the time of death.

RETIREES WORKING AND RECEIVING SURVIVOR’S ANNUITY

Q

I am over the Social Security full retirement age, and I’m told by the Office of Personnel Management (OPM) that my survivor’s annuity will be reduced by the amount of my earned Social Security when or if I elect to take it. Is this true?

A

You can get Social Security retirement or survivor’s benefits and work at the same time. However, Social Security Administration (SSA) will reduce the amount of your Social Security benefit if you earn more than the income limit.

If you are younger than your full retirement age of 66 and will earn more than the income limit of $16,920 in 2017, then the amount you receive in Social Security income or survivor’s benefits will be reduced by $1 for every $2 your earn. If you are now 66 years old and you will earn more than $44,800, then the amount you receive in Social Security income or survivor’s benefits will be

reduced $1 for every $3 you earn.

If you are past your retirement age, your Social Security income will not be reduced. The amount that your benefits are reduced, however, isn’t truly lost. You’ll get that money back because any money that SSA withholds due to the income limit is added back to your benefit calculation so that when you reach full retirement age, you’ll get a higher payment than you would otherwise.

OPM CONTACT FOR CHANGES TO FEHBP

Q

Whom do I contact at the Office of Personnel Management (OPM) about changing my Federal Employees Health Benefit Program (FEHBP) enrollment?

A

The FEHBP Open Season Online website information will be available for the next Open Season in early November 2017. The 2017 Open Season enrollment period will be from November 13 to December 11.

See page 42 for more information about Open Season changes as well as page 32 for information on FEHBP and Medicare.

Any changes made during Open Season to new health plan coverage will be effective on the first day of the first full pay period in January. For annuitants this date will always be January 1.

To make health plan changes during Open Season, annuitants can contact OPM by phone at 1-888-767-6738 or by mail W W W. N A R F E . O R G

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17

Questions & Answers

at the Retirement Operations Center, P.O. Box 45, Boyers, PA 16017-0045. You should use BENEFEDS to enroll or change enrollment in a FEDVIP plan by calling 1-877-888-3337 or visit www.benefeds.com.

MOVING FROM DISABILITY TO RETIREMENT BENEFITS

Q

My husband is age 58, disabled and receives Social Security disability benefits. I understand that at some point, his disability payment will stop, and he will instead receive retirement benefits. His full retirement age would have been age 66, if he had continued

to work. Does the conversion from disability to retirement under Social Security happen at age 62? If not, when does it happen in his case?

W

hen your husband reaches full retirement age, his disability benefits automatically convert to retirement benefits, but the amount remains the same. Nothing will change except his benefits will be called retirement benefits instead of disability benefits for Social Security purposes. Your husband does not need to take any action for this change to occur.

TSP AND STOCK MARKET FLUCTUATIONS

Q

Last year, I started withdrawing from my Thrift Savings Plan (TSP) account on a monthly basis. My calculation was such that it would last 10 years at a certain amount per month, including federal tax withholding. Will the fluctuations in the stock market affect the amount I receive?

A

This depends on what type of monthly payments you have chosen for your TSP account. If you have chosen to receive monthly payments of a specific dollar amount, then fluctuations in the

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New amplified phone lets you hear AND see the conversation.

o ct N t ra e n Fe o Co N hly t on M

Breakthrough technology converts phone calls to captions.

The Hamilton® CapTel® Captioned Telephone converts phone conversations to easy-to-read captions for individuals with hearing loss.

A simple idea… made possible with sophisticated technology. If you have trouble understanding a call, captioned telephone can change your life. During a phone call the words spoken to you appear on the phone’s screen – similar to closed captioning on TV. So when you make or receive a call, the words spoken to you are not only amplified by the phone, but scroll across the phone so you can listen while reading everything that’s said to you. Each call is routed through a call center, where computer technology – aided by a live representative – generates voice-to-text translations. The captioning is real-time, accurate and readable. Your conversation is private and the captioning service doesn’t cost you a penny.

Internet Protocol Captioned Telephone Service (IP CTS) is regulated and funded by the Federal Communications Commission (FCC) and is designed exclusively for individuals with hearing loss. To learn more, visit www.fcc.gov. The Hamilton CapTel phone requires telephone service and high-speed Internet access. WiFi Capable. Callers

do not need special equipment or a captioned telephone in order to speak with you.

Finally… a phone you can use again. The Hamilton CapTel phone is also packed with features to help make phone calls easier.

The keypad has large, easy to use buttons. You get adjustable volume amplification along with the ability to save captions for review later. It even has an answering machine that provides you with the captions of each message.

“For years I avoided phone calls because I couldn’t understand the caller… now I don’t miss a thing!”

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See for yourself with our exclusive home trial. Try a captioned telephone in your own home and if you are not completely amazed, simply return it within 60-days for a refund of the product purchase price. It even comes with a

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The Captioning Telephone is intended for use by people with hearing loss. In purchasing a Captioning Telephone, you acknowledge that it will be used by someone who cannot hear well over a traditional phone. Hamilton is a registered trademark of Nedelco, Inc. d/b/a Hamilton Telecommunications. CapTel is a registered trademark of Ultratec, Inc.

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Do you get discouraged when you hear your telephone ring? Do you avoid using your phone because hearing difficulties make it hard to understand the person on the other end of the line? For many Americans the telephone conversation – once an important part of everyday life – has become a thing of the past.

Because they can’t understand what is said to them on the phone, they’re often cut off from friends, family, doctors and caregivers. Now, thanks to innovative technology there is finally a better way.

Questions & Answers

stock market will not affect the amount received on a monthly basis, although they would affect the account balance to the extent the funds are held in stockbased funds. This would affect how soon the balance would deplete, and thus the number of months that you would receive the payments.

If you have chosen to receive monthly payments from the TSP based on IRS life expectancy tables, the initial payment amount will be based on your age and the account balance at the time of the first payment. Each year, on the anniversary of the date of your first monthly payment, the TSP will recalculate the amount

of your monthly payments. The recalculation will be based on your age and account balance at the end of the preceding year.

If you have selected a life annuity, you will receive the same monthly payment for life. For further clarification, contact the TSP at 1-877-968-3778.

THE CASE FOR AN FEHBP HMO AND MEDICARE

Q

I was enrolled in a health maintenance organization (HMO) for almost 25 years. In 2016, I enrolled in a preferred provider organization and Medicare. I am considering going back to my previous HMO during

the next Open Season. However, I am leery of dropping Medicare Part B in case there are drastic changes in the future of the Federal Employees Health Benefits Program (FEHBP). I am not clear on how the HMO plan will be different if I keep Medicare. Will I see a difference in getting care under a HMO compared to a feefor-service plan? Will there be a difference in the cost, as compared to before my enrollment in Medicare?

A

Your FEHBP plan is your secondary insurance coverage after Medicare Part B. Although HMOs provide good coverage,

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1

8/15/17 4:06 PM

Urgent: Special Summer Driving Notice

To some, sunglasses are a fashion accessory…

But When Driving, These Sunglasses May Save Your Life!

Studies by the National Highway Traffic Safety Administration (NHTSA) show that most (74%) of the crashes occurred on clear, sunny days

Drivers’ Alert: Driving can expose you to more dangerous glare than any sunny day at the beach can… do you know how to protect yourself?

T

he sun rises and sets at peak travel periods, during the early morning and afternoon rush hours and many drivers find themselves temporarily blinded while driving directly into the glare of the sun.

Deadly accidents are regularly caused by such blinding glare with danger arising from reflected light off another vehicle, the pavement, or even from waxed and oily windshields that can make matters worse. Early morning dew can exacerbate this situation.

Yet, motorists struggle on despite being blinded by the sun’s glare that can cause countless accidents every year.

Not all sunglasses are created equal.

Protecting your eyes is serious business.

With all the fancy fashion frames out there it can be easy to overlook what really matters––the lenses. So we did our research and looked to the very best in optic innovation and technology.

Sometimes it does take a rocket scientist.

A NASA rocket scientist. Some ordinary sunglasses can obscure your vision by exposing your eyes to harmful UV rays, blue light, and reflective glare. They can also darken useful vision-enhancing light.

But now, independent research conducted by scientists from NASA's Jet Propulsion Laboratory has brought forth ground-breaking

Eagle Eyes® Lens

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Slip on a pair of Eagle Eyes® and everything instantly appears more vivid and sharp. You’ll immediately notice that your eyes are more comfortable and relaxed and you’ll feel no need to squint. The scientifically designed sunglasses are not just fashion accessories— they are necessary to protect your eyes from those harmful rays produced by the sun during peak driving times.

technology to help protect human eyesight from the harmful effects of solar radiation light. This superior lens technology was first discovered when NASA scientists looked to nature for a means to superior eye protection—specifically, by studying the eyes of eagles, known for their extreme visual acuity. This discovery resulted in what is now known as Eagle Eyes®.

The Only Sunglass Technology Certified by the Space Foundation for UV and Blue-Light Eye Protection. Eagle Eyes® features the most advanced eye protection technology ever created.

The TriLenium® Lens Technology offers triplefilter polarization to block 99.9% UVA and UVB— plus the added benefit of blue-light eye protection. Eagle Eyes® is the only optic technology that has earned official recognition from the Space Certification Program for this remarkable technology. Now, that’s proven sciencebased protection.

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Questions & Answers

NARFE at Your Service they have restrictions on which doctors and facilities you can use. The Medicare Part B coverage could be used to help cover nonemergency medical services while traveling outside of the HMO service area. In addition, Medicare Part B could be used to cover claims for specialists you may want to use who are outside of the plan’s network.

Normally, the combination of Medicare Part B and FEHBP coverage, whether it is a feefor-service plan or an HMO, will cover most or all of your medical expenses. However, you don’t want to overpay for coverage and, with both coverages, the high-option premiums

would not buy you any additional benefits. If you decide to keep your Medicare Part B, you should consider looking at lower-cost premium options during the upcoming FEHBP Open Season from November 13 to December 11, 2017. See page 32 for information on FEHBP and Medicare.

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

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At NARFE headquarters, experts are available to answer questions and to assist in helping with a variety of benefit matters.

Call NARFE at:

703-838-7760, ext. 202 Correction: The September issue incorrectly listed the Federal Benefits Institute phone number. The correct number is listed above. Please make a note of it.

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Cover Story

THE GREAT PAY DEBATE Are Federal Employees Paid Too Much, Too Little or Just Right?

By David Tobenkin

Are federal employees compensated too much, too little or at just the right level?

In April, the nonpartisan Congressional Budget Office (CBO) released a report, “Comparing the Compensation of Federal and Private-Sector Employees, 2011 to 2015,� that found federal employees earned 17 percent more, on average, in total compensation than do comparable private-sector employees.

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THE GREAT PAY DEBATE Are Federal Employees Paid Too Much, Too Little or Just Right?

The report landed smack in the middle of congressional and executive branch actions proposing to reduce the size and compensation of the federal workforce. A month later, in May, the House Committee on Oversight and Government Reform, which oversees the federal workforce, including its compensation, convened a hearing to discuss the CBO report and identify areas of improvement or modernization in the federal compensation system. The hearing examined rival reports that have reached very different conclusions and featured the participation of employee advocates, including unions and NARFE, and small government and fiscal control groups, many calling for reduced federal salaries and benefits.

In the debate over the federal workforce that rages on Capitol Hill, an outsized issue is how much salary and benefits federal employees should receive. The dueling reports discussed at the hearing show just how hard determining that can be and how much depends on the methodology of the report. The reports’ big headline conclusions of under or overcompensation can obscure larger and more complex underlying issues of how best to compensate federal employees and of what type of employer the federal government should be.

THE CBO REPORT

The CBO report asserted that the compensation edge for federal employees it found was largely the result of the federal retirement system, which includes the defined benefit annuities offered by the Federal Employees Retirement System (FERS) and Civil Service Retirement System (CSRS). In the private sector, however, defined benefit plans are rapidly disappearing. The CBO report found that federal employees enjoyed a 47 percent average benefit premium over the private sector. On average, the pay differential was much closer, with the average federal worker enjoying only a 3 percent edge over his or her counterpart in the private sector.

There were additional takeaways. One was that federal employees with more education tend to receive less compensation than those in the private sector, while those with less education tend to receive better compensation than they would fare in the private sector.

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Among workers with a high school diploma or less education, total compensation costs averaged 53 percent more for federal employees than for their private-sector counterparts. Among workers whose education culminated in a bachelor’s degree, the cost of total compensation averaged 21 percent more for federal workers than for similar privatesector workers. For those with a professional degree or doctorate, by contrast, compensation was 18 percent lower, on average, for federal employees than for similar private-sector employees.

The study, whose results were in line with a similar 2012 CBO survey on the same subject, conceded that many variables were difficult to measure.

FEDERAL COMPENSATION STRATEGY There is a long history of congressional efforts to tie federal pay to private-sector equivalents.

The Federal Pay Comparability Act of 1970 permanently authorized the president to make annual adjustments to the General Schedule (GS) pay schedule for most white-collar federal workers, and also established a system for recommending adjustments with the goal of increasing federal pay to be comparable with the private sector. However, a 2012 Government Accountability Office (GAO) report found that the gap between average federal and private-sector salaries for similar jobs continued after implementation of the act because the recommended adjustments were not always made, such as during the federal pay freeze in 2011-2013. The Federal Employees Pay Comparability Act of 1990 (FEPCA) created annual pay adjustments based on locality for GS employees to reduce reported gaps between federal and nonfederal pay in metropolitan areas.

Congress has taken some note of the steady shift from defined benefit to defined contribution plans in the private sector through legislation creating the FERS, which reduced the annuity size from that received by CSRS recipients and added government contributions to FERS employees’ defined contribution Thrift Savings Plan.

DUELING MEASURES

The CBO is hardly the only entity to measure federal versus private-sector pay. As authorized by FEPCA, the Federal Salary Council (FSC) is an advisory body comprised of representatives from unions and employee organizations and experts on labor relations and compensation that oversees the GS pay schedule. The FSC reported in October 2016 that federal workers earn 34.07 percent less, on average, than private-sector employees doing comparable work.

That figure was similar to the pay gap reported in the preceding three years: 35.37 percent, 35.28 percent and 34.92 percent. Notably, that survey measured only salaries, not benefits, and did not consider total compensation.

This report might suggest swinging federal compensation upward, but several reports by small government advocacy groups suggest the opposite. They say that federal employees are overcompensated significantly more than the CBO report found. The Heritage Foundation, a conservative think tank, released a 2010 report which found that federal employees receive wages that are 22 percent higher than similar private-sector workers, and the average compensation disparity is between 30 percent and 40 percent when benefits are included. A 2011 American Enterprise Institute (AEI) study found that compared to similar private-sector workers, federal workers receive a salary premium of 14 percent, a benefits premium of 63 percent and extra job security worth 17 percent of compensation that, when added and weighted, generate an overall federal compensation premium of approximately 61 percent over private-sector equivalents. The libertarian CATO Institute in September 2016 found that in 2015 federal workers earned total compensation that was 76 percent more than the private-sector average.

The 2012 GAO report examined six pay comparison studies, including many currently under analysis or similar predecessors, and noted such studies generally approach pay comparisons in three ways: • A human capital approach that compares pay for individuals with various personal attributes (e.g., education, experience) and other attributes (e.g., occupation, firm size), which was used by the CBO and Heritage Foundation.

• A job-to-job approach that compares pay for similar jobs of various types based on jobrelated attributes (e.g., occupation), and does not take into account the personal attributes of the workers currently filling them, which was used by the FSC. • A trend analysis approach that illustrates broad trends in pay over time without controlling for attributes of the workers or jobs, a less common approach, which was used by the CATO Institute.

In the May hearing, a fierce debate ensued as to which of the dominant two approaches was better: the human capital approach or the job-to-job approach.

“Why do the Heritage Foundation and Office of Personnel Management (OPM)/Bureau of Labor Statistics (BLS) come up with opposite numbers? The simple answer is that the Heritage study has highly politicized assumptions and is based on data that are entirely inappropriate for use in salary comparisons,” said Jacqueline Simon, public policy director at the American Federation of Government Employees, in hearing testimony.

“

The BLS and OPM results derive from objective calculations and high quality data from the BLS’s National Compensation Survey.”

—Jacqueline Simon

“The BLS and OPM results derive from objective calculations and high quality data from the BLS’s National Compensation Survey, a survey designed specifically for use by private and public employers to gauge salary rates and differences by occupation and location,” Simon testified.

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THE GREAT PAY DEBATE Are Federal Employees Paid Too Much, Too Little or Just Right?

Simon also said that the CBO model improperly tries to compare the demographic characteristics of federal employees to private-sector equivalents.

“The federal government does not reproduce all of these differentials because, in its pay systems, demographic traits are irrelevant. Federal pay is an attribute of the job, not of the demographic traits of the individual holding the job.”

“

Federal pay is an attribute of the job, not of the demographic traits of the individual holding the job.”

—Jacqueline Simon

In contrast, conservative think tank AEI in its testimony praised the CBO study as “the finest and most advanced study of federal employee compensation ever produced,” said Andrew Biggs, a resident scholar at the AEI. Federal employee qualification inflation under the FSC report may account for that report’s finding of a federal employee deficit compared to the private sector, Biggs said. “If federal jobs are over-graded on the GS scale, they could pay well relative to private-sector jobs — as the CBO’s analysis, my own study and many others have found — while still appearing to be underpaid using the FSC’s flawed methodology.”

The 2012 GAO report did not pick a winner among the methodologies, but rather urged caution in relying upon the studies given their results reflected their varying approaches. “The differences among the selected studies are such that comparing their results to help inform pay decisions is potentially problematic. Given the different approaches of the selected studies, their findings should not be taken in isolation as the answer to how federal pay and total compensation compares with other sectors,” the GAO report stated.

The 2012 GAO report’s comparison analysis and findings remain valid today, said Robert Goldenkoff, GAO director of strategic issues and author of the 2012 report, who submitted testimony to the May hearing.

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COMPENSATION REFORM

The private- vs. public-sector pay comparisons have direct implications for a number of important federal workforce issues. The survey findings feed into policy recommendations. The Heritage Foundation, for example, recommends reducing retirement compensation for federal employees by eliminating the defined benefit, or annuity; reducing paid leave; reducing agency contributions to employees’ health benefits; and eliminating the government’s contribution to retiree health care benefits for new hires.

Indeed, federal benefits are under attack.

A variety of administration and House Budget Committee proposals could reduce or eliminate cost-of-living adjustments (COLAs), require greater pension contributions by employees, change the retirement annuity calculation from using the high-three years of salary to the high-five years of salary and eliminate the FERS Annuity Supplement. Several of the conservative pay comparison reports of the Heritage Foundation, AEI and the CATO Institute already have been featured in these efforts, and the latest CBO report has been added as grist for the mill, such as in a recent budget proposal of the conservative

Republican Study Committee.

With regard to pay, the status quo continues for the interim. Federal employees received raises averaging 2.1 percent this year and the Trump administration has proposed a 1.9 percent raise, which would take effect the first pay period of 2018, and within-grade step increases remain in place. However, a major change to compensation is a possible move toward pay for performance. The Department of Defense rolled out a major payfor-performance effort, the “Force of the Future”

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THE GREAT PAY DEBATE Are Federal Employees Paid Too Much, Too Little or Just Right?

initiative, in which within-grade step increases and quality step increases in pay for affected employees were tied to performance reviews beginning with April 2016 promotions.

BASIC COMPENSATION VALUES

The debate over private- vs. public-sector compensation also raises questions about basic value judgments regarding compensation, particularly concerning benefits. Should the federal government be an employer that seeks to pay the minimum amount possible and provides the least benefits needed to maintain its workforce,

“

Underlying these studies is a broader and more compelling discussion on compensation and benefits in the United States.”

—Rep. Gerald E. Connolly

or should it have higher standards?

Rep. Gerald E. Connolly (D-VA), a member of the House Oversight and Government Reform Committee, testified at the hearing, “Underlying these studies is a broader and more compelling discussion on compensation and benefits in the United States.

As private-sector wages have stagnated for low- to middle-income workers, these same workers have simultaneously been forced to wrestle with diminished access to employee benefits, such as pensions and other retirement plans. Only 47 percent of full-time, private-sector workers in the United States are currently participating in a retirement plan, compared to 55 percent in 1990. No one should want to continue this downward trajectory, and no one should want more American families to face such insecurity in their personal finances.”

Also, should the federal government aim for a workforce with some consistency in compensation of all members, as is currently the case, or allow vast disparities in pay, as has increasingly become the case in the private sector?

Some say what is required is a broader, more systemic and more dispassionate analysis of the 30

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federal workforce and what is needed to motivate and maintain it. For example, Goldenkoff’s May 2017 hearing testimony was focused on those broader issues, rather than a narrow examination of relative pay levels.

One effort to depoliticize such efforts is an Obama administration 2011 recommendation that Congress establish a Commission on Federal Public Service Reform. Charged with identifying fundamental reforms for the federal government human capital systems, including compensation reform, the commission would be composed of members of Congress, representatives from the president’s Labor-Management Council, members of the private sector and academic experts. Such a commission has not been established, Goldenkoff notes.

Comprehensive civil service restructuring legislation has not yet been introduced, despite single-party control of the executive and legislative branches. Rather, most legislation has dovetailed Trump administration and Congressional demands for rapid reductions in the cost and scope of the federal civil service, rather than a more wide-ranging compensation and civil service reform effort.

As one example, the recent directive by the House Budget Committee to the Oversight and Government Reform Committee to find $32 billion in savings in its 2018 fiscal year budget resolution could effectively mandate large federal retirement cuts and health care cost shifts to federal employees without a fundamental re-examination of basic compensation structure, noted NARFE President Richard Thissen in a July 21 statement.

Even those who think federal employees may, on average, be overcompensated say that the current policy approach toward compensation is not optimal. “It is understandable that policymakers concerned with the high cost of federal employees might resort to broad-brush policies such as a salary freeze, a hiring freeze and higher pension contributions,” AEI’s Biggs said in testimony. “It would be better to make the federal pay scale more flexible and nimble and better able to respond to individual needs and labor market demands at any given time.”

—DAVID TOBENKIN IS A FREELANCE WRITER BASED IN THE GREATER WASHINGTON, DC, AREA.

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BY TAMMY FL ANAGAN

The Medicare decision is one of the most confusing — yet important — decisions in your life after retirement. What makes it so hard is that it represents change. Consider that less than 5 percent of those eligible actually change health plans during the annual Federal Employees Health Benefits Program (FEHBP) Open Season. There is a sense of fear and so many choices, which sets the stage for analysis paralysis. Add to that the “Medicare decision,” and it becomes even more daunting. In this world of exponential technology and changing health care, you need more upto-date data to make the best decision.

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There are four parts to Medicare: Parts A and B which are considered “original” or traditional Medicare. Then, there are the newer Parts C and D. Although it might seem to make sense to start with A and end with D, for this article, we will start with the easiest decision, Medicare Part A, and end with the hardest decision for most federal retirees, Part B. In between, we’ll cover Parts C and D. When you qualify for Medicare at age 65, it may be difficult to imagine a time in the future when you may be scheduling your social life around doctor’s appointments. A 2015 Kaiser Foundation analysis shows some sobering numbers about the Medicare population: • Two-thirds of beneficiaries had three or more chronic conditions.

• More than one quarter of all beneficiaries reported fair or poor health.

• Just over three in 10 beneficiaries had a mental impairment.

• One in six beneficiaries were under age 65 with permanent disabilities.

• 13 percent were age 85 and over.

• 2 million beneficiaries live in a long-term care facility.

You will have a seven month initial enrollment period around your 65th birthday. You may be automatically enrolled, or you may sign up for Medicare online, by phone or in person at a Social Security office. Medicare Part A covers hospital or inpatient insurance, and the benefits of enrollment far outweigh the drawbacks.

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1. It’s “free!” Well, you’ve already paid the premium to have coverage through the 1.45 percent Medicare Hospital Insurance Tax payroll deduction during your working years.

2. Less burden on FEHBP. If your FEHBP premiums are being deducted from your (or your spouse’s) Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) retirement check, Medicare Part A will be the primary payer for your inpatient hospitalization, reducing the burden on your FEHBP plan.

3. FEHBP plan incentives. Many FEHBP plans often will waive their inpatient deductible, copays and coinsurance providing 100 percent coverage for your inpatient medical care when Part A is primary. Remember that Medicare Part A does not cover outpatient services or observation when you are not formally admitted.

4. Services not covered by FEHBP. If you have FEHBP premiums deducted from a federal paycheck, rather than as a retirement benefit, then FEHBP will continue as the primary payer. In this case, Part A may pay for services not covered by FEHBP when you are admitted for an inpatient hospital stay. For example, skilled nursing care coverage often is more generous.

5. Hospital care for veterans. It is recommended that veterans who receive benefits through the Department of Veterans Affairs enroll in Medicare Part A which will provide hospital coverage should you go to a non-VA facility.

6. Coverage where Medicare leaves off.

For eligible veterans and their family members, the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA) will cover many of the costs not covered by Medicare.

7. Required coverage for veterans. When retired service members and their families become eligible for TRICARE For Life (TFL) at age 65, they are no longer able to enroll in TRICARE Prime. TFL requires Medicare Part A and B enrollment.

8. Medicare pays first. CHAMPVA and TFL will always pay last if you are enrolled in Medicare and/or FEHBP. There are few downsides to enrolling in Medicare Part A. There is only one reason why you should not enroll:

1. Ineligible for Health Savings Account (HSA) contributions. If you have a highdeductible health plan, you will no longer be eligible to make tax-free contributions to a HSA if you have Medicare. The month Medicare coverage begins, you need to stop contributions to your HSA; however, you

may continue to withdraw money after you enroll to help pay for medical expenses with tax-free dollars.

Medicare Part D is the newest part of Medicare and covers outpatient prescription drugs. In 2016, premium surcharges ranged from $12.70 to $72.90 per month for higher-income beneficiaries in addition to the average $41 monthly premium. FEHBP enrollees who have high outof-pocket prescription drug expenses may choose to enroll in a Medicare Part D plan. FEHBP plans are considered “creditable� coverage under Part D and there is no late enrollment penalty. In 2015, 39 million people were enrolled in Part D. Most federal retirees consider FEHBP adequate to provide prescription drug benefits.

Medicare Part C, which is often called Medicare Advantage, is a program through which beneficiaries can enroll in a private health plan, such as a health maintenance organization (HMO) or preferred provider organization (PPO), and receive all Medicare-covered Part A and Part B benefits and typically Part D benefits.

Federal retirees may choose to suspend their FEHBP coverage to use a Medicare Advantage plan and later re-enroll in FEHBP during a subsequent Open Season. Nearly 17 million beneficiaries were enrolled in Medicare Advantage plans in 2015. Medicare Advantage plans are financed primarily by payroll taxes and general revenues. Medicare Advantage enrollees generally pay the monthly Part B premium and also may pay an additional premium.

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Advantage or Medicaid policies since the federal government pays 72 percent of the premium, on average, for qualified retirees and survivor annuitants and there are no underwriting requirements for FEHBP.

Another type of insurance relative to Medicare is Medigap policies, also called Medicare Supplement Insurance. These plans provide supplemental coverage for one in five people in traditional Medicare. These policies, typically sold by private insurance companies, provide full or partial coverage for Medicare Part A and B deductibles, copayments and coinsurance. There can be big differences in premiums that insurance companies charge for exactly the same coverage.

Another option for some Medicare eligible individuals is Medicaid, the federal-state program that provides health and long-term care coverage to low-income people and covers close to 10 million Medicare beneficiaries. Medicaid helps pay for Medicare premiums and cost sharing.

Employer-sponsored retiree health plans, such as FEHBP, are a primary source of supplemental coverage for people on Medicare, providing coverage for about 4 in 10 beneficiaries in 2011. In the private sector, employers offering coverage to retiring employees has dropped from 66 percent in 1988 to 23 percent in 2015. Unfortunately, nearly one in five Medicare beneficiaries with Medicare Parts A and B have no supplemental coverage.

Federal retirees and eligible survivor beneficiaries generally maintain FEHBP coverage rather than enroll in Medigap, Medicare

Now, we turn to the last and most confusing part of Medicare, Part B. The Medicare Part B decision is one that involves adding Part B to FEHBP, rather than substituting Part B for FEHBP. Remember this: Unless you are “suspending” FEHBP, it is not recommended that retirees cancel their FEHBP coverage! See sidebar on page 40 for more information.

The Office of Personnel Management (OPM) reported in 2015 that newly Medicare-eligible federal retirees are enrolling in Medicare Part B in declining rates. Since 2005, the participation rate in Part B for newly eligible annuitants has declined by 20 percent among fee-for-service plans and by 10 percent for HMOs. OPM attributed the decline to members not having a clear incentive to enroll.

More recently in 2016, OPM noted that an increasing number of health insurance carriers have adopted plan design changes or conducted member education efforts to promote increased enrollment in Medicare Part B. The decision to enroll in Medicare Part B also may coincide with changing to a less expensive, but more compatible, FEHBP plan

Your Medicare Part B premium will be automatically deducted from your Social Security retirement benefit or may be deducted from your federal retirement benefit, if you aren’t receiving a Social Security benefit. You also may pay the premium directly from your bank account through Medicare’s Easy Pay program.

Most people will pay the standard premium amount for Part B, which is $134 (or higher) in 2017. If your modified adjusted gross income is above a certain amount, you may pay a higher Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from two years ago to determine your IRMAA. Some people who get Social Security benefits pay less than the standard amount because of

a provision called “hold harmless” that does not allow the Part B premium to increase more than the cost-of-living increase if the premium is being withheld from your Social Security benefit.

You’ll pay the standard premium amount (or higher) if: • You enroll in Part B for the first time in 2017 • You don’t get Social Security benefits.

• You’re directly billed for your Part B premiums.

• You have Medicare and Medicaid, and Medicaid pays your premiums. (Your state will pay.)

• Your modified adjusted gross income as reported on your IRS tax return from two years ago is above a certain amount. If so, you’ll pay an IRMAA.

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option. The following are five reasons you should consider enrolling in Medicare Part B – balanced by re-evaluating your current FEHBP plan enrollment choice.

1. Lower out-of-pocket expenses. Your FEHBP plan may provide incentives that lower your out-of-pocket health care expenses by reducing or eliminating your deductible, copay and coinsurance. Some plans also will lower their prescription drug copays when Medicare A and B are primary payers.

2. Tailored to your needs. Medicare caters to the needs of older adults and may provide better coverage for such things as therapy, durable medical equipment and home health care.

3. Greater savings. Although you must pay a premium for Part B, you may achieve greater overall savings once Medicare is added to your FEHBP coverage.

4. Suspended coverage. If you have health coverage under the VA, TRICARE For Life or Medicare Advantage, you may suspend your FEHBP coverage as you may not need the additional coverage if the other options work for your health care needs. Try suspending FEHBP for one year and see how it goes. You can always re-enroll during the next Open Season, or even outside of the Open Season by making a once-in-a-lifetime Medicare qualifying life event change using OPM Form 2809.

5. Premiums will cost more if you delay your decision. There is generally a permanent 10 percent surcharge added to the Medicare Part B premium for every 12 months that you delay your enrollment past age 65 (or at retirement if covered by you or your spouse’s current employment health plan). In a few FEHBP plans, the Medicare Part B premium may be reimbursed if Medicare is the primary payer for you and your eligible spouse.

There also are reasons to question the necessity of Medicare Part B enrollment: 1. Per-person premiums. Part B has a 38

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monthly premium per person enrolled.

Higher-income beneficiaries may have to pay a higher rate for Medicare Part B. See the sidebar on page 40 for 2017 rates.

2. Continued FEHBP coverage. Your coverage under FEHBP won’t be canceled if you choose not to enroll in Medicare.

3. Lack of coverage abroad. Medicare coverage is not available outside of the United States.

Rumors abound that your health care provider will no longer see you once you have Medicare or that you won’t be able to find a doctor who accepts Medicare. The Kaiser Family Foundation 2016 issue brief provides facts that dispel this rumor to a large extent.

With regard to Medicare, there are three categories of providers: participating, nonparticipating and those who opt out of Medicare altogether. The majority of providers – 96 percent – participate in Medicare, which means they accept Medicare’s standard fee schedule. If the beneficiary has FEHBP as the secondary payer, FEHBP often will pay the 20 percent copayment after Medicare covers 80 percent.

A small share of providers – 4 percent – are nonparticipating, and they can charge a fee that is up to 15 percent higher than the Medicare fee schedule. In many cases, this may be included in your FEHBP plan allowance.

Finally, only 0.7 percent of providers opt out of Medicare altogether. Medicare does not cover or reimburse the doctor or patient for any services provided by opt-out providers, which means that Medicare patients are responsible for the entire cost of any services not covered by their FEHBP plan benefit. Of physicians who have opted out, psychiatrists comprise the greatest share (almost 40 percent) of physicians, and dental providers comprise the largest share among other types of practitioners. Doctors in concierge practice models (which typically charge an annual membership fee) are not required to opt out of Medicare, but if they do

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Medicare acceptance rates are considerably higher than those of Medicaid because of higher reimbursement rates, according to a 2017 Merritt Hawkins study. In addition, Medicare is the default insurance of most patients age 65 or older, a relatively high number of patients, particularly those seeking specialty services such as orthopedic surgery, dermatology and cardiology.

Many physicians, and specialists in particular, are therefore locked into accepting this form of insurance.

Try this experiment: Ask your providers, “What will happen when I turn 65 and enroll in Medicare in addition to my FEHBP coverage?”

In the end, the choice is yours. It pays to consider enrollment in Medicare Parts A and B if you are retired and over age 65. Consider the benefit to

combining a lower-cost FEHBP plan with Medicare. Unfortunately, this isn’t a one-size-fits-all situation. Key considerations include: • Do you have family members who will not be covered under Medicare?

• Will you be covered if you go outside of your plan’s network?

• Do you fill expensive prescription drugs?

• Does your FEHBP plan provide an incentive to enroll in Medicare Parts A and B? As you progress through your retirement years, you will benefit from the flexibility of changing FEHBP plans during Open Season periods. Due diligence is one of the most important steps you can take in the decision-making process.

—TAMMY FLANAGAN IS A NARFE FEDERAL BENEFITS INSTITUTE WEBINAR PRESENTER; MANAGER OF TAMMY FLANAGAN, LLC, AND SENIOR BENEFITS DIRECTOR AT THE NATIONAL INSTITUTE OF TRANSITION PLANNING, INC. SHE CONDUCTS RETIREMENT TRAINING AT FEDERAL AGENCIES, WRITES A WEEKLY COLUMN CALLED “RETIREMENT PLANNING” FOR WWW.GOVEXEC.COM AND IS A FREQUENT GUEST ON FEDERAL NEWS RADIO.

If your yearly income in 2015 (for what you pay in 2017) was

You pay each month (in 2017)

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File joint tax return

File married & separate tax return

$85,000 or less

$170,000 or less

$85,000 or less

$134

above $85,000 up to $107,000

above $170,000 up to $214,000

Not applicable

$187.50

above $107,000 up to $160,000

above $214,000 up to $320,000

Not applicable

$267.90

above $160,000 up to $214,000

above $320,000 up to $428,000

above $85,000 and up to $129,000

$348.30

above $214,000

above $428,000

above $129,000

$428.60

Source: www.medicare.gov/your-medicare-costs/costs-at-a-glance/costs-at-glance.html Note: Federal retirees and eligible survivor annuitants my suspend FEHBP coverage during retirement by providing documentation to OPM that they are covered by TRICARE or TRICARE For Life, CHAMPVA, Medicare Advantage (Medicare Part C), Medicaid or Peace Corps health coverage. The form needed to suspend (not cancel) is OPM Form 2809, which is available at www.opm. gov/forms. You may re-enroll in FEHBP if your coverage involuntarily ends or during a subsequent FEHBP Open Season period.

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Open Season Report

O

PEN SEASON REPORT

WHAT YOU CAN DO IN OPEN SEASON

It’s Time to Prepare: Open Season is from November 13 - December 11, 2017

F

ederal Benefits Open Season in 2017 will run from Monday, November 13, through Monday, December 11.

During Open Season, federal employees may enroll or change their current enrollments in several federal insurance benefit programs, such as the Federal Employees Health Benefits Program (FEHBP), the Federal Employees Dental and Vision Insurance Program (FEDVIP) and the Federal Flexible Spending Account Program (FSAFEDS).

Federal retirees and survivors may make changes to their current enrollment in FEHBP and FEDVIP. Importantly, Open Season is the only time of the year when enrollees in FEDVIP can cancel their enrollment.

The Office of Personnel Management (OPM) will release information regarding the 2018 premiums and benefit changes for the numerous insurance plans participating in these federal programs in early October, well ahead of the starting date of Open Season, to give everyone enough time to study the options and make a

42

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change if they want. NARFE will publish the new premium rates and information in narfe magazine and will post them on the NARFE website.

WHAT TO EXPECT

In 2018, OPM’s goal for FEHBP is to pursue innovative ways to restrain rising health care costs while providing opportunities for members to live healthier lives, according to the OPM 2017 Program Carrier Letter, the agency’s official solicitation to insurance carriers for benefit and rate proposals for the 2018 plan year.

OPM is concerned that rising drug prices and increasing

drug utilization continue to drive up FEHBP premiums. In 2015, according to the agency, 25.5 percent of the total FEHBP health care budget was spent on drugs. Accordingly, OPM is strongly encouraging all carriers to re-examine opportunities to reinforce or add proven utilization management techniques to reduce drug use.

The agency told carriers that, although efforts in previous years have improved health outcomes while managing drug costs, OPM will be looking for insurance carrier proposals that optimize safe use and evidence-based formulary management of drugs.

OPEN SEASON WEBINARS The NARFE Federal Benefits Institute will conduct two webinars on topics related to Open Season: • “ FEHBP & Medicare – What’s Best for You?” October 26, 2 p.m. ET • “Health Plans: Discover Your BEST Option,” November 30, 2 p.m. ET Webinar presenter will be federal benefits expert Tammy Flanagan. A one-hour Q&A session follows each webinar. The webinars are free to NARFE members. To register, go to www.narfe.org, log in and click on the Federal Benefits Institute banner.

The Aetna DirectSM plan Meet the health plan tailor-made for federal retirees • Lower monthly plan premiums • A fund to help you pay for prescriptions or Medicare Part B premiums • Waived deductibles and coinsurance for medical services if Medicare Parts A and B are primary and your provider accepts Medicare assignment

Open season starts November 13.

To find out more, visit aetnafeds.com/aetnadirect or call 1-877-459-6604.

aetnafeds.com/aetnadirect Health insurance plans are offered and/or underwritten by Aetna Life Insurance Company (Aetna). This is a brief description of the features of this Aetna health insurance plan. Before making a decision, please read the plan’s applicable federal brochure(s). All benefits are subject to the definitions, limitations and exclusions set forth in the federal brochure. Plan features and availability may vary by location and are subject to change. Aetna does not provide care or guarantee access to health services. For more information about Aetna plans, refer to aetnafeds.com/aetnadirect. ©2017 Aetna Inc. 19.12.309.1-FED (8/17)

Open Season Report

Substance use disorders (SUDs), including the misuse of opioids, have reached epidemic proportions among Americans, according to OPM. The agency deems it “essential” for 2018 that FEHBP carriers recognize the seriousness of SUDs, and assure access to effective treatments. OPM believes medication assisted treatments (MATs), such as methadone treatment centers, buprenorphine and naltrexone, are increasingly used to treat patients with SUDs and should be available to all plan members. OPM encourages carriers to take additional actions, such as adding qualified prescribers to their networks and making MATs easily available to subscribers. Carriers are asked to provide a transition policy for new enrollees to keep their pharmacologic treatments for SUDs in place without interruption when they change plans.

OPM believes FEHBP carriers are “beginning to make progress”

In 2018, OPM’s goal for FEHBP is to pursue innovative ways to restrain rising health care costs while providing opportunities for members to live healthier lives. toward achieving diabetes control. A comprehensive approach to diabetes care involves screening, effective prevention and evidence-based management — all of which can improve the health of plan members, reduce long-term complications and control costs.

For 2018, OPM asks all carriers to support plan members with diabetes by marketing any diabetes education programs they cover, reminding clinicians of American Diabetes Association treatment guidelines and removing any existing barriers to timely testing and treatment. OPM has required all carriers to submit the specifics of their comprehensive diabetes management efforts to the agency.

Telehealth is the use of electronic information and telecommunications technologies, such as telephones, the internet, videoconferencing, email and text messaging, to support long-distance service delivery. OPM is “pleased” many plans are beginning to offer members more services through telehealth. This includes virtual visits for primary care, urgent care, behavioral health, in-home monitoring of chronic illnesses and dermatology. The agency encourages FEBHP carriers to use this tool, especially in the field of behavioral health, and asked them to describe the areas in which they intend to implement or expand their telehealth services.

OPM ADDRESSES UNEXPECTED BILLING ISSUES Many FEHBP members have encountered unexpected charges from out-of-network health care providers who provide services within network hospitals. Some networks, according to OPM, have made outreach and education efforts to limit the problem, but FEHBP members continue to be billed for these charges, according to the 2017 OPM Program Carrier Letter, the agency’s official solicitation to insurance carriers for benefit and rate proposals for the 2018 plan year.

In the past, OPM has encouraged plan carriers to carefully evaluate contracts with providers to make sure the maximum level of in-network benefits are provided, especially in the areas of anesthesiology, radiology and neonatology. For 2018, OPM intends to “remain focused” on this concern and has asked all carriers to specifically describe new strategies they will use to address this issue — and to consider negotiating one-time contracts with out-of-network providers. OPM

44

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suggests that carriers consider adopting some, if not all, of the following strategies: • Work with contracted facilities to steer plan members to in-network providers • Examine how emergency room care, regardless of network status, is billed and reimbursed • Implement the use of bundled payments for episodes of care that are commonly affected by out-of-network billing, such as services involving emergency, radiology, pathology, anesthesia and neonatology providers • Review facility contracts to ensure that innetwork medical providers are available • Develop consumer resources that provide greater transparency about out-of-network provider status and costs The agency’s goal is to ensure that all members have access to in-network options wherever practicable and receive sufficient notice before out-ofnetwork services are delivered.

Managing Money

SHOULD YOUR ESTATE BE A TSP BENEFICIARY?

I

’m often asked if it’s possible to name one’s estate as a Thrift Savings Plan (TSP) beneficiary. While the simple answer is yes, there are two key consequences that

require a lengthier discussion.

The first consequence is that you turn a nonprobate asset into a probate asset. Probate is the court supervised process that identifies and oversees the distribution of probate assets as communicated in a will or by state law if no will exists.

Retirement accounts, such as the TSP, have beneficiary designations, which will pass assets to the named beneficiaries outside of the probate process and regardless of what your will says.

While some states’ probate process is relatively benign, other states can be more cumbersome. Even if you live in a state with a relatively easy probate process, it will still take more time, paperwork and hassle than the relatively simple process of claiming a TSP account.

The second consequence of naming your estate as beneficiary is all tax advantages provided by a TSP account will be lost. This is due to the fact that the only death benefit option available when an estate is beneficiary is a lump-sum distribution.

Not only will the entire TSP be distributed and taxed in

46

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a single calendar year, but also all future tax-deferred growth, or tax-free growth if it’s a Roth TSP, will be lost.

Let’s compare this to what happens if you name individuals as beneficiaries to your TSP account. We’ll start with a spouse named as beneficiary.

In this case, when you die, your TSP account will be transferred to a beneficiary participant TSP account in your spouse’s name.

At this point, your spouse may leave the funds in the beneficiary participant TSP account, or the money may be transferred from the beneficiary participant TSP account to an individual retirement account (IRA).

If your spouse leaves the money in the beneficiary participant TSP account, he or she will have the same withdrawal options as you did as a TSP participant. For example, your spouse will be able to take a one-time partial withdrawal, or one of three full withdrawal options. The full withdrawal options are a single payment, a series of monthly payments or a life annuity.

Your spouse also will be subject to required minimum

BY MARK A. KEEN,

CFP®

distribution (RMD) rules, which are based on your spouse’s life expectancy and will apply to both the traditional and Roth TSP balances. The timing of when your spouse must start RMDs depends on whether you die before or after your required beginning date (RBD), which is defined as April 1 of the year following the year a participant reaches age 70-½ or separates from government service, whichever is later.

If you die before your RBD, your spouse must begin receiving annual RMDs by either December 31 of the year you would have turned 70-½, or December 31 of the year following the year of death, whichever is later. Your spouse must continue to receive RMDs by December 31 of each year thereafter.

If you die on or after your RBD, your spouse must receive an annual RMD by December 31 of each year following the year of your death.

If your spouse chooses to transfer the beneficiary participant TSP account to an IRA, the spouse is treated as if he or she was always the owner of the IRA. In other words, any contribution and distribution rules that apply to an original IRA owner will now apply to your spouse.

This includes rules for RMDs,

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

which IRA owners must generally begin the year they turn 70-½.

If you have named a beneficiary who is not your spouse, the beneficiary will not be able to continue a TSP account. Instead, he or she must take a lump sum distribution, which may be paid directly to the beneficiary or transferred to an www.FreedomPlaza.com (888) 467-5202 inherited IRA. If your non-spouse beneficiary transfers the money to an inherited IRA, the Retired Officers’

beneficiary will be subject to RMDs based on his or her own life expectancy. Your non-spouse beneficiary must receive an RMD by December 31 of each year following the year of death.

It’s important to note that your non-spouse beneficiary may always take more than the annual RMD from the inherited IRA at any time.

Similarly, a spouse who continues a beneficiary participant TSP account may take more than the annual RMD as well.

The bottom line: naming individuals as beneficiaries will provide them the option to continue the tax advantages of your TSP account. Naming your estate as beneficiary does not.

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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2017

G FUND

F FUND

C FUND

S FUND

I FUND

AUGUST

0.19%

0.91%

0.30%

-0.41%

-0.03%

JULY

0.19%

0.43%

2.05%

1.11%

2.88%

JUNE

0.19%

-0.09%

0.62%

2.33%

-0.18%

YTD

1.55%

3.86%

11.93%

8.16%

17.35%

1 YEAR

2.19%

0.78%

16.24%

15.31%

18.00%

3 YEAR*

2.05%

3.00%

9.60%

7.29%

3.16%

5 YEAR*

2.01%

2.59%

14.39%

13.96%

8.81%

10 YEAR*

2.46%

4.66%

7.67%

8.35%

1.91%

L INCOME

L 2020

L 2030

L 2040

L 2050

AUGUST

0.22%

0.21%

0.19%

0.17%

0.15%

JULY

0.60%

0.96%

1.42%

1.63%

1.82%

JUNE

0.26%

0.35%

0.46%

0.52%

0.58%

YTD

3.92%

6.18%

8.74%

9.97%

11.07%

2017

*ANNUALIZED

1 YEAR

4.91%

7.85%

11.06%

12.65%

14.17%

3 YEAR*

3.35%

4.39%

5.59%

6.13%

6.54%

5 YEAR*

4.28%

7.35%

9.16%

10.27%

11.26%

10 YEAR*

3.73%

4.72%

5.46%

5.78%

N/A

*ANNUALIZED

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

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

OPM RETIREMENT CLAIMS PROCESSING STATUS

2016

2017

For the Record

STOCK FUNDS PULLED IN TWO DIRECTIONS DURING AUGUST

THRIFT SAVINGS PLAN FUND RETURNS

Claims Received

Inventory

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

JULY 9,238 15,562 AUGUST 6,818 16,334 SEPTEMBER 6,946 15,146 OCTOBER 7,326 16,677 NOVEMBER 5,065 16,019 DECEMBER 5,483 15,097 JANUARY 15,317 23,087 FEBRUARY 9,114 23,916 MARCH 7,216 20,530 APRIL 6,581 18,932 MAY 5,548 16,140 JUNE 6,141 14,530 JULY 10,070 17,091

79% 78% 77% 58% 60% 56% 51% 56% 61% 56% 54% 55% 55%

110 112 100 91 94 95 89 104 105 80 89 99 98

FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. Source: OPM 48

| O C T

2 0 17

Stocks were pulled in two directions by geopolitical concerns and improved corporate earnings. The C Fund gained a little, while the S and the I Funds fell. The F Fund profited from falling Treasury yields, which resulted from low inflation and a quest for safety. The L Funds all gained.

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

COUNTDOWN TO COLA

T

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.08 percent in July 2017. To calculate the 2018 cost-of-living adjustment (COLA), the indices of July, August and September 2017 will be averaged and compared with the 2016 third-quarter average of 235.057. The percentage increase, if any, determines the COLA. July’s index, 238.617, is up 1.52 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. July’s index is 1.37 percent higher than the December 2016 base index of 235.390.

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

MONTH

CPI-W

OCTOBER 2016

235.732

NOVEMBER DECEMBER

Monthly % Change

% Change from 235.057

+0.10

+0.29

235.215

-0.20

+0.06

235.390

+0.07

+0.14

JANUARY 2017

236.854

+0.62

+0.76

FEBRUARY

237.477

+0.26

+1.03

MARCH

237.656

+0.08

+1.11

APRIL

238.432

+0.33

+1.44

MAY

238.609

+0.07

+1.51

JUNE

238.813

+0.09

+1.60

JULY

238.617

-0.08

+1.52

AUGUST SEPTEMBER

Donate to NARFE Programs Support Alzheimer’s Research

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

WRITE YOUR CHAPTER NUMBER ON CHECK; MAKE IT PAYABLE TO: NARFE-Alzheimer’s Research

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

Please circle: Mr. Mrs. Miss Ms. AND MAIL TO: Name: Alzheimer’s Association Address: 225 N. Michigan Ave., 17th Floor City: State: ZIP: Chicago, IL 60601-7633 Chapter Number: Credit Card Information:

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Join the Silver CIrcle CLIP THIS CONTRIBUTION FORM AND MAIL TO: NARFE Silver Circle 606 N. Washington St. Alexandria, VA 22314

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

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

Name: Address: City: State: ZIP: 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 1641 Prince St. Alexandria, VA 22314

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

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(Please make check payable to NARFE Silver Circle.)

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MAKE CHECK PAYABLE TO: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund.

Date

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Date

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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 NARFE-FEEA Scholarship Fund

Amount: $ Amount: $

Name: Address: City: State: ZIP: To make credit card contributions, visit NARFE Scholarships at www.feea.org/givenarfeschol or NARFE Disaster Relief at www.feea.org/givenarferelief.

/

NARFE News

2018 Balloting

Important Information and Key Dates

I

n accordance with the One Member, One Vote bylaws amendment, passed by the delegates at NARFE’s 2016 National Convention, significant changes have been made to the voting process. Here you will find key dates, national officer and regional vice president candidate procedures and information and instructions for the submission of resolutions.

KEY DATES November 15, 2017

Standing Committees and Ad Hoc Committee Named by President

December 15, 2017

National Officer and Regional Vice President Candidate Statements Due

December 15, 2017

Proposed Bylaw and Standing Rule Amendments and Proposed Resolutions Due

January 2018

Standing Committees Meet

February 1, 2018

Bylaws and Resolutions Committee Final Report Due

March 2018 Issue

Candidate Statements Published in narfe Magazine

April 2018 Issue

Bylaws and Resolutions Committee Report Published in narfe Magazine

May 10, 2018

Internet Voting Site Live

June 2018 Issue

Ballot Published in narfe Magazine

June 30, 2018

Voting Cutoff

President, Secretary/Treasurer and Regional Vice President Candidates All candidates for the positions of president, secretary/treasurer and regional vice president must submit their candidate statement by December 15, 2017 for narfe magazine publication. Candidate statements will be published in the March 2018 issue only. This will allow NARFE members to view all candidates for office at once. This is a change from previous years, when statements were published as submitted over the course of four months.

The statements must be limited to 400 words and may be emailed to communications@narfe.org as a Microsoft Word attachment.

No copy corrections will be made, including spelling, so statements should be carefully proofread before submission. Candidates should submit a head-and-shoulders 50

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photograph for publication with their statement. Photos should be high-resolution digital photos in JPG format and submitted by email to communications@narfe.org.

Deadline for statements and photos is December 15, 2017.

Candidates also are entitled to send statements to the membership via NARFE’s email messaging system. Statements must be limited to 400 words and may include the candidate’s photo. No copy corrections will be made, including spelling, so statements should be carefully proofread before submission. Two messages may be sent between March 1 and June 30, 2018. Send statements as Microsoft Word attachments and a head-and-shoulders candidate photo to IT@narfe.org.

Proposed Bylaw and Standing Rule Amendments and Proposed Resolutions

Any member, chapter, federation, the National Executive Board (NEB) or any special committee designated by the NEB may submit proposed bylaw and standing rule amendments and proposed resolutions. These must be submitted to National Headquarters by December 15, 2017, either via email at resbylaws@narfe.org or mail addressed to the Secretary/Treasurer. Only those submissions provided on the appropriate forms will be accepted. Forms may be found online at www. narfe.org/2018Balloting or by request of the Secretary/Treasurer.

NARFE Standing Committees ANNOUNCEMENT AND CALL FOR VOLUNTEERS NARFE’s President has announced his intention to seek National Executive Board (NEB) approval of the formation of six new standing committees and an ad hoc committee. Each committee would develop an annual work plan in consultation with its staff liaison, as assigned by the Executive Director, consistent with the strategic and operating plans. Annual committee work plans would be reviewed and approved by the NEB. Once creation of the committees is finalized, appointments to NARFE standing committees would be made by the President. Committees would be comprised of representatives from across NARFE. The President may appoint a Regional Vice President to serve as an NEB liaison to any committee, with the exception of the Bylaws and Resolutions Committee.

The President and Executive Director would be ex officio members of all committees, with the exception of the Bylaws and Resolutions Committee.

All standing committees would meet in January 2018. Preauthorized expenses incurred in the course of official committee business would be reimbursed consistent with NARFE policy. All

committee appointments would be unpaid volunteer positions.

PROPOSED STANDING COMMITTEES

Advocacy Advisory Committee

The charge of the Advocacy Advisory Committee is to advise and support the Director of Legislation in the development and implementation of NARFE’s federal legislative program, federal agency relations, grassroots program, state relations and other activities consistent with the current strategic and operating plans.

Bylaws and Resolutions

The charge of the Bylaws and Resolutions committee is to advise and support the Secretary/Treasurer in the review of and action on current and proposed bylaws and resolutions and other governance matters consistent with the current strategic and operating plans.

Communications Advisory Committee

The charge of the Communications Advisory Committee is to advise and support the Director of Communications in the development and implementation of NARFE’s digital and traditional publishing,

EXPRESS INTEREST IN THE PROPOSED COMMITTEES To express interest in volunteer service on any of the proposed committees described above, email the following information by November 15, 2017, to committees@narfe.org:

• Name • Membership ID • Committee desired • Brief description of NARFE involvement and qualifications for the appointment sought

social media programs and other activities consistent with the current strategic and operating plans.

Finance Advisory Committee

The charge of the Finance Advisory Committee, which is chaired by the Secretary/Treasurer, is to advise and support the Director of Finance and Budget in the development, monitoring and reporting of the annual budget consistent with the current strategic and operating plans.

Marketing and Member Resources Advisory Committee

The charge of the Marketing and Member Resources Advisory Committee is to advise and support the Director of Marketing in the development and implementation of policies, programs and services for membership recruitment and retention, business development, public relations and the Federal Benefits Institute consistent with the current strategic and operating plans.

Strategic Planning Advisory Committee

The charge of the Strategic Planning and Innovation Committee is to advise and support the NEB and Executive Director in the development of a strategic plan, including developing and populating a quarterly report to the membership on progress against objectives and strategies in that plan.

AD HOC COMMITTEE

Ballot Oversight Committee

The charge of the Ballot Oversight Committee is, on an as-needed basis, to provide oversight of the balloting systems, processes and outcomes for any national NARFE electoral business.

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Active and Retired Federal Employees ...

Join NARFE Today!

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

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

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

NARFE MEMBER BENEFITS

• • • • •

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

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

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

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

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

1Q6

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

____________________________________________________

Full Name

____________________________________________________

Street Address

____________________________________________________

Apt./Unit

____________________________________________________

City

State

ZIP

____________________________________________________

Phone

____________________________________________________

Email

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

q Annuitant Spouse q Survivor Annuitant

q Please enroll my spouse _______________________________________________

Spouse’s Full Name

_______________________________________________ Spouse’s Email

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

2. Join online at www.narfe.org.

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

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

q VISA q Discover

q AMEX

_________________________________________________ Card No. Expiration Date _____ /________ mm

yyyy

_________________________________________________ Name on Card _________________________________________________ Signature _________________________________________________ Date

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

Looking to meet others in the federal community and participate in NARFE at a local level? Call 800-627-3394 to learn about a NARFE chapter in your area.

Or, if known, add Chapter # to join now ________________

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

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.

Register to Attend the

2017 Virtual Benefits Fair This Fall

Chat with participating FEDVIP, FEHB, FLTCIP, and FSAFEDS carriers.

Explore your benefits in one convenient online location Log in anytime during the 2017 Federal Benefits Open Season, from November 13 to December 11. You will be able to review 2018 plans, visit individual carrier booths, watch instructional videos, and register for educational webinars.

Get answers to your questions Visit the Virtual Benefits Fair during any one of our two live carrier chat days:

Monday, November 13, 2017 10 a.m.–5 p.m. ET

Tuesday, December 5, 2017 10 a.m.–5 p.m. ET

Representatives from all participating carriers will be available to take your questions.

Register at LTCFEDS.com/elearning!

Please note, retired federal employees are not eligible for all benefits.

Email VBFHelp@ltcpartners.com for more information.

FLTCIP10029

The Federal Long Term Care Insurance Program is sponsored by the U.S. Office of Personnel Management, insured by John Hancock Life & Health Insurance Company, and administered by Long Term Care Partners, LLC.

Member Perks

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

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

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

INSURANCE

MiniMoves 800-300-6683 GEICO 800-368-2734 www.geico.com/fed/narfe GEICO offers a special discount opportunity for NARFE members. To find out how much you could save, visit our website or call today and mention that you are a NARFE member. Have your current coverage information available in order to secure a comparable quote. Your completed quote will help benefit NARFE! For complete terms and conditions, visit www.narfe.org/memberperks.

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

MOVING SERVICES

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

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NEW

MiniMoves is America’s only national mover exclusively focused on small shipments; a piece, a room or a full condo. There’s no minimum weight charge. Our binding quote helps you plan your move with confidence. Member discount - $25 off 500 pounds; $50 off larger moves. Use code 1292.

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

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

PRODUCTS

Omaha Steaks 800-228-9055 www.omahasteaks.com/ NARFE Since 1917, Omaha Steaks has been delivering customers the finest gourmet steaks, seafood, poultry, pork, sides and desserts. Omaha Steaks make memo-

rable gifts for any holiday, or you can enjoy a gourmet meal right at home.

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

NEW

Purchasing Power 866-670-3479 purchasingpower.com/NARFE With Purchasing Power, thousands of brand-name products are within reach.

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

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

TELECOMMUNICATIONS

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

TRAVEL

Alamo 800-462-5266 www.alamo.com Drive Happy® with Alamo® where

NARFE members receive year-round discounts. Call or visit our website today and reference Contract ID 262544.

Avis Car Rental 800-633-3469 www.avis.com Avis Car Rental is one of the world’s best-known car rental brands with approximately 5,500 locations in more than 165 countries. Avis has a long history of innovation in the car rental industry and is one of the world’s top brands for customer loyalty. Call or book your reservation now at Avis.com using the NARFE AWD number A701900.

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

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

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

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

WELLNESS

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

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

NEW HearUSA www.hearusa.com/narfe The Nation’s Most Trusted Name in Hearing Care. Choose from 250+ hearing aids from 11 manufacturers with $0 co-pay for many plans. Wireless. Bluetooth. Smartphone compatible. Nearly invisible. Risk-free 60-Day trial. Free follow-up care. Free 3-Year warranty. Call 1-855-845-2706 to see if you qualify for 2 FREE hearing aids.

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

NEW

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

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

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

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

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The Way We Worked

MAKING THE LIST In this photo from the late 1930s, Immigration and Naturalization Service (INS) clerks at the Ellis Island Immigration Station use passenger lists to verify the lawful entry of applicants for naturalization. Clerks searched through volumes of ship ledgers to locate each immigrant’s arrival entry, which showed that he or she had been lawfully inspected and admitted to the United States and, therefore, was eligible to apply for citizenship.

Today, U.S. Citizenship and Immigration Services (USCIS) use internet-based systems such as E-Verify and SAVE to provide immigration and employment status verification for a number immigration benefits.

PHOTO from the records of the U.S. Citizenship and Immigration Services History Office and Library, courtesy of the National Archives History Office; in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. To join, visit http://shfg.org.

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DID YOU KNOW? From 1892 to 1954, more than 12 million immigrants entered the U.S. through Ellis Island. As America’s largest and busiest port of entry for decades, the Ellis Island station employed 119 of the Immigration Service’s entire staff of 180 in 1893.

Ellis Island was dedicated as a national monument in 1965 and in the 1980s it became part of the largest restoration project in U.S. history, according to the USCIS website at www.uscis.gov.

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IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. 1Monthly fees do not include government taxes or assessment surcharges and are subject to change. Plans and services may require purchase of a Jitterbug Flip and a one-time setup fee of $35. Coverage is not available everywhere. 5Star or 9-1-1 calls can only be made when cellular service is available. 5Star Service will be able to track an approximate location when your device is turned on, but we cannot guarantee an exact location. 2We will refund the full price of the Jitterbug phone and the activation fee (or setup 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.

There are no additional fees to call GreatCall’s U.S.-based customer service. However, for calls to a Personal Operator in which a service is completed, you will be charged 99 cents per call, and minutes will be deducted from your monthly rate plan balance equal to the length of the call and any call connected by the Personal Operator. Jitterbug, GreatCall and 5Star are registered trademarks of GreatCall, Inc. Copyright ©2017 GreatCall, Inc. ©2017 firstSTREET for Boomers and Beyond, Inc.

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