December 2016 NARFE Magazine

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MY MEDICARE ADVENTURE

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OPEN SEASON: PLAN CHANGES

COVER STORY Volume 92 • Number 12

MAKING ADJUSTMENTS

Enrollees modify long-term care coverage; NARFE pushes reform

P.24

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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.

DEC

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WASHINGTON WATCH

6

Small COLA Leaves Many Retirees Worse Off

7

‘Mass Transit’ May Be Vehicle for Funding

7

Bill Tracker Will Be in Recess

8

Register Now for 2017 Legislative Conference

9

Legislative Conference Registration Form

10 NARFE Bill Tracker COLUMNS

24

4 From the President 58 Managing Money COVER STORY

60 The Informed Citizen

MAKING ADJUSTMENTS. As premiums soar, enrollees in the Federal Long Term Care Insurance Program modify their coverage, while NARFE pushes Congress to enact reforms.

62 Alzheimer’s Update DEPARTMENTS

MY MEDICARE ADVENTURE. A federal retiree searches for the answer to the question: What should I do about Medicare and the FEHBP?

32

14 Questions & Answers 64 For the Record:

TSP Returns, Retirement Claims Status, Countdown to COLA

66 NARFE News 72 The Way We Worked SPECIAL SECTION

38 Open Season:

On the Web

Plan Changes

VISIT US ONLINE AT:

www.narfe.org LIKE US ON FACEBOOK:

NARFE National Headquarters FOLLOW US ON TWITTER:

@narfehq

ON THE COVER

Illustration by Bill Pragluski, Critical Stages, LLC W W W. N A R F E . O R G

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DECEMBER 2016 | Volume 92 | Number 12

EDITOR Margaret M. Carter EDITORIAL ADMINISTRATOR Toni Vallario GRAPHIC DESIGN Charlene Gridley

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

EDITORIAL BOARD Richard G. Thissen, Jon Dowie REGIONAL VICE PRESIDENTS 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.

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

HERE’S HOW TO CONTACT US… TO JOIN NARFE OR TO RENEW YOUR MEMBERSHIP:

CALL (TOLL-FREE) 800-627-3394 OR GO TO www.narfe.org

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

TO REACH A FEDERAL BENEFITS SPECIALIST:

EMAIL fedbenefits@narfe.org NARFE HEADQUARTERS

TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:

CALL (TOLL-FREE) 800-456-8410, EMAIL memberrecords@narfe.org OR LOG ON TO www.narfe.org and go to “My Account”

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 © 2016, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in narfe, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President

NARFE’S YEAR IN REVIEW

T

his has been quite a year. The battle for the White House and Congress, incidences of terrorism at home

and abroad, and the violent weather and its aftermath have consumed the airwaves in 2016. On the last topic, if you are in a declared disaster area and need monetary assistance, remember the availability of a $500 NARFE grant (see p. 66 for details).

In NARFE, we have had quite a year, also. First and foremost, we again staved off the attacks on federal employee and retiree benefits. We were able to deter passage of a flawed postal reform bill that would have made Medicare Part B mandatory for postal retirees to retain their coverage under the Federal Employees Health Benefits Program. We started this Congress with a budget that aimed to take $318 billion from the federal

community. Not one dime became law.

We set a goal for the 114th Congress (20152016) to raise $1 million for NARFE-PAC. I am proud to report that NARFE members contributed more than $1.4 million. Thank you so much.

Your support allowed NARFE to disburse funds to every deserving campaign, helping elect fedfriendly members. It also raised our visibility among legislators, as larger PAC contributions generate interest and notice.

Our membership recruitment efforts continue to show progress. We are on track to reduce our losses substantially again this year. Membership losses in 2016 will be about half the number we recorded in 2014. The webinars offered by our Federal Benefits Institute have contributed greatly to this effort, and we will expand that program in 2017.

The National Convention in August was history-making in that two major changes were adopted: Chapter membership is now optional, and every member in NARFE now has a personal say in the governance of the Association with the adoption of One Member, One Vote. These were important steps in NARFE’s evolution. We are continuing to strengthen the Headquarters staff and are in the process of hiring an executive director to ensure continuity and professionalism in the future.

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

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Washington Watch

SMALL COLA LEAVES MANY FEDERAL RETIREES WORSE OFF THAN BEFORE

F

ederal retirees received bad news on October 18 with the announcement of a small, 0.3 percent, cost-ofliving adjustment (COLA) to federal civilian and

military retirement annuities and Social Security benefits in 2017 (see story, p. 64).

Not only is the small COLA disappointing for federal retirees in its own right, but it also means that hundreds of thousands of federal retirees will see an outsized increase in their Medicare Part B premiums. This increase comes on top of an average increase of more than 6 percent in their Federal Employees Health Benefits Program premiums in 2017, and an average increase of 83 percent in Federal Long Term Care Insurance Program premiums, which took effect in November.

The outsized increase in Medicare premiums is the result of an unfortunate interaction between the so-called “hold harmless” provision of Social Security law and a requirement that premiums cover 25 percent of the costs of program benefits. Because of 6

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this, some Medicare beneficiaries are protected against premium increases reducing their benefits, while others must pick up the tab.

Under the hold harmless provision of the Social Security Act, the dollar increase in Medicare Part B premiums is limited to the dollar increase in an individual’s Social Security benefit. With such a small COLA for Social Security benefits, about 70 percent of beneficiaries will be held harmless, meaning their Medicare Part B premiums will increase, on a dollar-to-dollar basis, only in proportion to the increase in their Social Security checks. The baseline premium for current beneficiaries held harmless is $104.90 per month.

However, the remaining 30 percent of Part B beneficiaries who

are not held harmless, including federal retirees who are covered by the Civil Service Retirement System (CSRS) and who do not receive Social Security benefits, will shoulder the bulk of the cost of the 2017 premium increase.

As projected by the Medicare Trustees, these individuals will see their premiums rise significantly. Without the effect of the hold harmless provision, there would be little to no increase in the standard Medicare premium.

“It is grossly unfair that those who pay their premiums from something other than Social Security must pay more in premiums,” said NARFE President Richard G. Thissen in a statement. “There is no reason why two people with the same income should pay different Medicare premiums based on whether the money is coming from a Social Security check or a federal annuity.”

Thissen went on to say: “When it was announced in 2015 that there would be no COLA in 2016, Congress acted swiftly to limit the

MYTH vs.

REALITY projected increase from 52 percent to 15 percent for those not held harmless. While this agreement wasn’t perfect, it provided some relief to federal retirees. NARFE implores the White House and Congress to once again prevent this unfair and disproportionate Medicare premium increase for federal retirees and millions of

others. Both the administration and Congress have the authority to keep the increase from going fully into effect, and I urge them to do so quickly.”

NARFE members can lend their support by echoing those comments to their members of Congress and the White House.

—BY JOHN HATTON, DEPUTY LEGISLATIVE DIRECTOR

‘MASS TRANSIT’?

T

he headline is not meant to describe the mode of transportation for the exodus from Washington of dozens of lawmakers who chose not to seek re-election (or the others turned out at the polls on November 8).

Rather, “mass transit” could be a reference to the expected mode of moving the 12 annual appropriations bills for fiscal year 2017 through Congress before the current continuing resolution expires on December 9.

Over the past several years, Congress has resorted to an “omnibus” appropriations bill – wrapping all 12 funding measures

MYTH: The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), produced by the Bureau of Labor Statistics (BLS) and used to calculate cost-of-living adjustments (COLAs), does not take into account gas, housing and medical care.

into one single mammoth bill – with one up or down vote – to cover the operating expenses of every federal agency, program, project and activity funded on an annual basis. This year, lawmakers are reportedly considering a different tack: a series of “minibuses” (grouping two or more individual appropriations bills together to garner the votes needed for passage).

With hopes of progress on Capitol Hill as the 114th Congress rides into the sunset, here’s wishing everyone a Happy New (Fiscal) Year, even if it gets off to a late start!

—BY ALAN LOPATIN, LEGISLATIVE COUNSEL

BILL TRACKER WILL BE IN RECESS When the 114th Congress adjourns, all bills that did not pass in the 114th Congress expire; they are not carried over to the next Congress. To be considered in the 115th Congress (2017-2018), these bills will have to be reintroduced.

As bills are introduced in the 115th Congress that are of interest to NARFE members, narfe magazine will reinstate the NARFE Bill Tracker. NARFE members also can track the bills NARFE is following via the Legislative Action Center on NARFE’s website, www.narfe.org.

REALITY: The BLS divides the several hundred items it analyzes into eight groups to calculate the CPI-W. These groups are: food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Within these groups, the prices of gas, housing and medical care all are considered.

Households included in the CPI-W meet two requirements: More than half of the household’s income must come from clerical or wage occupations, and at least one of the household’s earners must have been employed for at least 37 weeks during the previous 12 months.

NARFE contends that this population is not appropriate to determine seniors’ spending. For example, health care accounts for 13 percent of expenditures

by Americans over age 65, compared to 5 percent for all other age groups. A switch to the Chained CPI would be an even less accurate reflection, while the CPI-E, which NARFE supports, would provide the most accurate calculation.

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

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Washington Watch

REGISTER NOW FOR 2017 LEGISLATIVE CONFERENCE

T

he NARFE 2017 Legislative Training Conference is just around the corner!

The conference will be held at the Hilton Mark Center in Alexandria, VA, from March 12-15.

Register now online by visiting the conference website at www. narfe.org/legcon2017, or by mail using the registration form on the facing page. The $175 registration fee includes three buffet breakfasts, two lunches, one buffet dinner, materials, a closing reception, and transportation on March 15 to and from Capitol Hill for congressional meetings. The

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

fee is not refundable. Registration deadline is February 10, 2017.

Hotel reservations must be made separately by going online to the Hilton website or calling, tollfree, 800-445-8667. Mention you are attending the NARFE 2017 Legislative Training Conference to get the special room rate of $169, plus applicable taxes, for a total of $194.51 per night. Deadline to obtain that rate is February 10.

Attendees are responsible for arranging their own meetings on Capitol Hill for March 15. A sample meeting request letter will be available online in January.

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

NARFE-PAC CONTRIBUTION FORM I would like to be a SUSTAINER and make a monthly credit card contribution to NARFE-PAC of: q $25/month q $10/month

Monthly contributors of $10 or more will receive the NARFE-PAC Sustainer lapel pin and a NARFE duffle bag.

q Other: ______/month (minimum of $10)

q Please charge to my credit card (required for monthly contribution) Credit Card Information Type:

q MasterCard q VISA q Discover q American Express

Card No.: _____________________________________ Expiration Date: _____ /_________

OR

mm

yyyy

I would like to make a one-time contribution of:

Name on Card: ________________________________

q $250 GOLD – Gold lapel pin and duffle bag

Signature: ____________________________________

q $100 SILVER – Silver lapel pin

Date: ________________________________________

q $50 BRONZE – Bronze lapel pin q $25 BASIC – Basic lapel pin q Other: _______________

q Please do not send any gifts for my contribution.

Or make check payable to NARFE-PAC. Mail to: National Active and Retired Federal Employees Association Attn: Budget & Finance 606 North Washington St. | Alexandria, VA 22314

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.

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REGISTRATION FORM

Registration must be returned by February 10, 2017

Each participant must complete a form. Please write legibly.

Name:

o Mr.

o Mrs.

o Miss

o Ms. o Dr.

_______________________________ Last

NARFE Membership # _______________________

________________________ First

___________________________ Middle

Name as you would like it to appear on badge: _________________________________________________ Federation or chapter officer title for your badge (choose only one title — Examples: President, Ohio Federation; or NARFE-PAC Chair, Chapter 192/Raleigh, NC): ____________________________________________ ________________________________________________________________________________________ Home address: ___________________________________________________________________________ ________________________________________________________________________________________ Preferred phone: ________________________

Email address: ___________________________________

Notify in case of emergency: ________________________________________________________________ Name

Phone number

Your congressional district (ex. MD-1): __________ (This is listed on your magazine label)

o Charge to my credit card $____________

$175 registration fee is not refundable.

o MasterCard

o VISA

o Discover

o AMEX

Please complete registration form and return with check made payable to NARFE, or charge to your credit card.

Card # __________________________________________

Mail to: NARFE Legislative Conference Budget & Finance 606 North Washington St. Alexandria, VA 22314-1914

Name on card (print) __________________________________

Exp. Date ________ / _______ (mm)

Signature ______________________________

For Internal Planning Purposes Only:

Conference meals and events are included for registered attendees.

Are you planning on attending the Sunday night dinner? o Yes o No Are you planning on attending the breakfasts on Monday, Tuesday and Wednesday? o Yes o No Attendees may bring guests to all NARFE-provided meals for a separate $175 fee.

This fee does not include participation in the trainings or materials. Will you have a guest for meals? o Yes o No Name of guest(s) _______________________________________________ Is this your first NARFE Legislative Training Conference?

o Yes

o No

I am a(n): o Active Federal Employee o Active Federal Employee Spouse o Annuitant

o Annuitant Spouse

(yy)

o Survivor Annuitant

Can NARFE include your name, chapter and title on a list of attendees that will be distributed to participants? o Yes o No

Date________

For Internal Planning of March 15 on Capitol Hill:

Do you plan to ride the NARFE-provided bus to Capitol Hill on March 15? o Yes o No Do you plan to return to the hotel from Capitol Hill on the bus later that afternoon? o Yes o No Do you plan to attend the evening reception? o Yes o No

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. 3351: CPI-E Act of 2015 / Rep. Mike Honda, D-CA COLA

LATEST ACTION(S)

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

Cosponsors: 37 (D)

Referred to the House committees on Ways and Means, Veterans’ Affairs, Oversight and Government Reform, and Armed Services narfe, August 2016

H.R. 4461: Federal Employee Rights Act / Rep. Tom Price, R-GA UNION RIGHTS

Cosponsors: 41 (R)

H.R. 485: Wage Grade Employee Parity Act /Rep. Matt Cartwright, D-PA

Would limit the rights of federal employee unions by barring them from automatically deducting dues from workers’ paychecks, alter the way union elections are conducted and prohibit unions from using dues to conduct political activity.

Referred to the House Committee on Oversight and Government Reform

Gives the president the authority to provide Wage Grade, or hourly, employees a pay raise.

Referred to the House Committee on Oversight and Government Reform

Provides for a 3.8 percent pay raise for federal employees and a 1.4 percent increase in locality pay in 2017.

Referred to the House Committee on Oversight and Government Reform

Cosponsors: 9 (D), 3 (R)

FEDERAL COMPENSATION

H.R. 4585: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerald E. Connolly, D-VA Cosponsors: 80 (D) S. 2699: The Federal Adjustment of Income Rates (FAIR) Act / Sen. Brian Schatz, D-HI

narfe, April 2016

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 3 (D) H.R. 5714: Postal Service Reform Act of 2016 / Rep. Jason Chaffetz, R-UT

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

Cosponsors: 3 (D), 1 (R)

Referred to the House Committee on Oversight and Government Reform narfe, Nov 2016

POSTAL REFORM H.Res. 12: Expresses the sense of the House that the Postal Service should take measures to ensure continuation of six-day delivery / Rep. Sam Graves, R-MO

Expresses the sense of the House that the U.S. Postal Service should maintain six-day mail delivery. As a resolution, it will not be sent to the president and, therefore, cannot become law.

Referred to the House Committee on Oversight and Government Reform

Cosponsors: 176 (D), 60 (R) NARFE’s Position: 10

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Support

Oppose

No position

EDITOR’S NOTE: Several items have been removed from the NARFE Bill Tracker. Those bills are all listed online at cqrcengage.com/narfe/home.

ISSUE

POSTAL REFORM

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

LATEST ACTION(S)

H.R. 784: Protect Overnight Repeals the service standards Delivery Act / Rep. Rosa implemented by the Postal DeLauro, D-CT Service on 1/5/15 and directs the Postal Service to reinstate Cosponsors: 100 (D), 3 (R) 12/31/2011 service standards.

Referred to the House Committee on Oversight and Government Reform

S. 1742: Rural Postal Act of Returns to service standards 2015 / Sen. Heidi Heitkamp, of July 2012, preserves six-day D-ND delivery and puts a two-year moratorium on plant closures.

Cosponsors: 7 (D)

Referred to the Senate Committee on Homeland Security and Governmental Affairs

S. 2051: The Improving Postal Operations, Service and Transparency Act (iPost) of 2015 / Sen. Thomas R. Carper, D-DE

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 2 (D), 3 (R)

Requires postal employees and retirees to enroll in Medicare in order to continue receiving their current federal health insurance coverage and cuts workers’ compensation benefits for injured federal employees.

H.Res. 54: Expresses the sense of the House that the Postal Service should take all measures to restore service standards in effect on July 1, 2012 / Rep. Dave McKinley, R-WV

Expresses the sense of the House that the U.S. Postal Service should restore service standards as of July 1, 2012. As a resolution, it will not be sent to the president and, therefore, cannot become law.

Referred to the House Committee on Oversight and Government Reform

Would allow the U.S. Postal Service to provide basic financial services, including small-dollar loans, checking and savings accounts and international money transfers, and to create a Postal Card that allows users to engage in these services.

Referred to the House Committee on Oversight and Government Reform

narfe, November 2016

Cosponsors: 184 (D), 52 (R) H.R. 4422: Providing Opportunities for Savings, Transactions, and Lending (POSTAL) Act of 2015 / Rep. Cedric L. Richmond, D-LA Cosponsors: 12 (D)

CAMPAIGN FINANCE

HEALTH CARE

H.R. 20: The Government By the People Act / Rep. John Sarbanes, D-MD Cosponsors: 160 (D), 1 (R) H.R. 2175: FEHBP Prescription Drug Oversight and Cost Savings Act / Rep. Stephen F. Lynch, D-MA Cosponsors: 2 (D)

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

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

Referred to the House Committee on Oversight and Government Reform

(Continued on p. 12) W W W. N A R F E . O R G

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Washington Watch

narfe bill tracker

(Continued from p. 11) ISSUE

BILL NUMBER / NAME / SPONSOR H.R. 973: Social Security Fairness Act of 2015 / Rep. Rodney Davis, R-IL Cosponsors: 117 (D), 38 (R)

GPO/WEP

WHAT BILL WOULD DO

LATEST ACTION(S)

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

Referred to the House Committee on Ways and Means

S. 1651: Social Security Fairness Act of 2015 / Sen. Sherrod Brown, D-OH

Referred to the Senate Finance Committee

Cosponsors: 17 (D), 6 (R), 2 (I)

narfe, September 2015

H.R. 711: Equal Treatment of Reforms the Windfall Elimination Provision (WEP). For Public Servants Act of 2015 individuals who turn 62 in / Rep. Kevin Brady, R-TX 2017 or later, it provides a new formula that would deCosponsors: 49 (D), 81 (R) crease the WEP penalty, on average, for those affected.

For those who turn(ed) 62 before 2017, it would reduce the WEP penalty by up to 50 percent, based on savings derived from improved enforcement of WEP, as determined by the Social Security actuary.

Referred to the House Committee on Ways and Means

H.R. 532: Federal Employees Paid Parental Leave Act / Rep. Carolyn Maloney, D-NY

Referred to the House committees on Administration, and Oversight and Government Reform

Allows federal employees six weeks of paid leave for the birth or adoption of a child.

Cosponsors: 69 (D), 1 (R) PAID PARENTAL LEAVE

narfe, May 2015

S. 2033: Federal Employees Paid Parental Leave Act / Sen. Brian Schatz, D-HI

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 2 (D)

DC STATEHOOD

PENSION SCAM PROTECTION

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narfe, November 2016

narfe, November 2015

Sets forth procedures that H.R. 317: New Columbia Admission Act / Del. Eleanor would allow the District of Columbia to become a Holmes Norton, D-DC state known as New Columbia.

Cosponsors: 132 (D), 1 (I)

Referred to the House committees on Oversight and Government Reform, and Administration

H.R. 3850: Annuity Safety and Security Under Reasonable Enforcement (ASSURE) Act / Rep. Matt Cartwright, D-PA

Referred to four House committees

Cosponsors: 24 (D), 1 (R)

Requires appropriate disclosures regarding “pension advance” schemes and caps the interest rates on these advances. Also creates a private right-ofaction to allow individuals to enforce these laws in court.

NARFE’s Position:

Support

narfe, January 2016

Oppose

No position

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

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

EMPLOYEES TO PAY OR NOT TO PAY: HOW A REDEPOSIT AFFECTS THE CALCULATION OF AN ANNUITY

Q

I am a Civil Service Retirement System (CSRS) employee planning to retire at the end of this calendar year. I just learned that to repay a refund of retirement contributions I received in 1983, I now would owe more than $50,000. I need to know how payment or nonpayment will affect my federal annuity. My personnel specialist is unable to help me because she is dealing with employees who are retiring this month.

Can NARFE provide any assistance?

A

We can provide you with general information on how payment or nonpayment can affect your future annuity. The rules for redeposits for a period of service that ended before March 1, 1991, are different than for a period of service that ended after March 1, 1991.

If the period of service ended before March 1, 1991, as yours did, you do not need to pay the redeposit to get credit for eligibility to an annuity and have the service used in the annuity computa-

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tion. However, your annuity will be permanently reduced on an actuarial basis.

If the period of refunded service ended on or after March 1, 1991, the service can be used for eligibility for an immediate annuity but will not be used in the computation of your retirement unless you pay the redeposit. In that case, if you do not make the refund, 2 percent for each year of refunded service times your high three average salary is removed from the annuity computation.

As an employee, you can make the redeposit using form SF 2803.

SERVICE COMPUTATION DATE FOR CSRS OFFSET

Q

I’m a CSRS Offset employee who is considering retiring. Some time ago, my agency computed my service computation date for leave and retirement eligibility as January 15, 1980. I left the government in January 1983, after working approximately four years as a term employee under the Civil Service Retirement System (CSRS). During that time, I paid only FICA taxes. I returned in December 1984 under a temporary appointment and became permanent in August 1985. I recently asked my HR office to verify my “offset” years, so I can estimate the amount of my annuity reduction at age 62, and they provided the same date – January 15, 1980. Is this possible?

A

Based on the service periods you listed, your agency provided you only with the service computation date that is used for leave and retirement purposes. The period of service that will be used by Social Security for benefits and by the Office of Personnel Management in adjusting your benefits at age 62 or at your retirement, if later, is that period of service starting when you returned to federal service after your break in the CSRS-only coverage. From that date until you retire, the service is considered CSRS Offset service and, at age 62 or retirement, if later, will be used in the offset computation.

NARFE CAN HELP WITH RETIREMENT DECISIONS

Q

Does NARFE offer any retirement training to prepare and ensure that active federal employees make thoughtful decisions in preparation for retirement? I am approaching retirement, and my agency’s retirement training is practically nonexistent.

A

NARFE’s Federal Benefits Institute provides valuable information to federal employees preparing to retire. NARFE offers white papers on a number of important benefit topics and conducts a series of retirement-related webinars, hosted by Tammy Flanagan, an expert in the field of federal benefits, and others. Webinars are free to NARFE members. Go to

the NARFE website, www.narfe. org, and click on NARFE Federal Benefits Institute to learn more.

RETIREES COVERING GRANDCHILD UNDER FEHBP PLAN

Q

I have been retired for nine years from the Social Security Administration.

I am the permanent guardian of my grandchild, who is nine years old. I am considering attempting to cover my grandchild under my Federal Employees Health Benefits Program (FEHBP) insurance.

As my grandchild and my dependent, is she eligible for coverage under my FEHBP plan?

A

Grandchildren are not eligible dependents under the FEHBP law. However, an adopted child or a foster child who lives with you and whom you intend to raise to adulthood is an eligible dependent. You can call or write the Office of Personnel Management (OPM) to request coverage under your FEHBP plan for your grandchild as a foster child. OPM will send you a form to complete and return. Once OPM approves your request, it will notify your FEHBP plan to include your grandchild as an eligible dependent.

WHERE TO GET OFFICIAL PERSONNEL FOLDER

Q

I am a federal retiree, and I’d like to get a copy of my Official Personnel Folder

(OPF). To whom at the Office of Personnel Management (OPM) should I write?

A

OPM doesn’t have your OPF. Those are kept at the National Personnel Records Center. All requests must be in writing and mailed or faxed to: National Personnel Records Center, Annex, 1411 Boulder Boulevard, Valmeyer, IL 62295; fax, 618-935-3014. For more information, go to www.archives.gov/ st-louis/civilian-personnel/.

PUBLIC SAFETY TAX EXCLUSION FOR LTC

Q

I am a retired federal law enforcement officer. I would like to purchase long-term care (LTC) insurance.

I understand that federal tax law provides retired public safety officers a $3,000 exclusion for LTC premiums. Can premiums be paid directly from a Thrift Savings Plan (TSP) disbursement or should they be deducted from my federal annuity to take advantage of the $3,000 tax-exclusion rule?

A

We are not tax experts, but we believe that the premiums must be withheld from your monthly annuity.

The TSP is similar to a 401(k) plan. IRS Publication 721 provides the following information: “If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made W W W. N A R F E . O R G

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15

Questions & Answers

from an eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. The premiums can be for coverage for you, your spouse, or dependents. The distribution must be made directly from the plan to the insurance provider. You can exclude from income the smaller of the amount of the insurance premiums or $3,000. You can only make this election for amounts that would otherwise be included in your income. The amount excluded from your income cannot be used to claim a medical expense deduction. For this purpose, an eligible retirement plan is a governmental plan that is: A qualified trust,

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a section 403(a) plan, a section 403(b) annuity, or a section 457(b) plan. The CSRS [Civil Service Retirement System] and FERS [Federal Employees Retirement System] are considered eligible retirement plans.� As always, we strongly suggest you consult with a certified tax expert.

WAIVER OF DEDUCTIBLE

Q

In the 2016 Blue Cross Blue Shield Service Benefit Plan (BCBS) brochure, it says that the calendar-year deductible is $350 per person or $700 per family under Standard option. But then, when Medicare is the primary payer, it says the cal-

endar-year deductible is waived.

When I called BCBS, they said the family deductible is not waived if I am the only one in the family enrolled in Medicare Parts A and B. But their brochure seems to say the whole family deductible should be waived. What is the truth?

A

We think the information BCBS gave you over the phone is correct. The plan brochure says it will waive its calendar-year deductible, coinsurance and co-payments for some services when Medicare Part B is primary. For the family deductible to be waived, each covered individual must have Medicare

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Part B as their primary coverage.

However, if you want to appeal their decision, have them put their denial in writing and follow the procedures on page 134 of the BCBS brochure.

PENALTY FOR MEDICARE LATE ENROLLMENT

Q

I am trying to figure out what my out-of-pocket expenses would be should I choose not to enroll in Medicare Part B, but just maintain my Blue Cross Blue Shield (BCBS) plan under the Federal Employees Health Benefits Program (FEHBP) and enroll in Medicare Part A. If I do not enroll in Medicare Part

18

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A

First, you are not correct in your assumption that you will not incur the late enrollment penalty if you decide in 15 years to enroll in Medicare Part B. When you are retired, if you do not sign up for Medicare Part B when you are first eligible – usually at age 65 — and later decide to enroll, there will be a 10 percent late enrollment penalty for each year you were not enrolled in Part B and could have been. This penalty is on top of whatever the current premium is

at the time you enroll.

For instance, if you wait five years to enroll after you first become eligible to enroll in Part B, your monthly Part B premium will be 50 percent higher than the basic premium. That penalty continues to be applied every time the Part B premiums change.

Being enrolled in the federal Blue Cross Blue Shield plan (or any FEHBP plan) as a retiree does not exempt you from the late enrollment penalty.

Regarding your out-of-pocket expenses should you choose not to enroll in Part B: They will continue to be the same. There is no difference in out-of-pocket expenses under the BCBS plan

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Questions & Answers

NARFE at Your Service that you have been paying should you not enroll in Part B. To learn more, go to www. opm.gov/healthcare-insurance/ healthcare/plan-information/ plans/ and read the BCBS brochure.

CORRECTION

In answer to a question in the October 2016 issue, p. 17, we mistakenly stated that at age 65 and if eligible to enroll, an individual must enroll in Medicare Part A. That is not the case. No one can be forced to enroll in Medicare Part A, the part of Medicare insurance that covers in-hospital costs. For most eligible individuals, enroll-

ment in Part A is automatic and premium-free. If an individual, for whatever reason, wants to opt out of the automatic Part A coverage, he or she can do so by visiting or contacting the Social Security Administration. A cautionary note: In 2012, a federal appeals court ruled that individuals automatically eligible for Medicare Part A cannot opt out if they want to keep their Social Security benefits.

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.

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

800-456-8410.

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

www. narfe.org.

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Illustration by Bill Pragluski, Critical Stages, LLC

Cover Story

N G E N I M K T A S M JU D A

S T

By David Tobenkin

INSURANCE EXISTS TO REDUCE THE DANGERS OF CATASTROPHIC LOSS. BUT THE HUGE, 83 PERCENT AVERAGE INCREASE IN PREMIUMS ANNOUNCED EARLIER THIS YEAR FOR POLICYHOLDERS IN the Federal Long Term Care Insurance Program (FLTCIP), and the possibility of significant premium increases down the road, have many asking whether long-term care insurance is appropriate for them and, even if it is, whether they can afford it now or in the future.

The choice is a personal one, but experts say there is some general guidance that can help individuals make the best decision.

There also are a few steps, some of which may require legislation, that NARFE and others are advocating that possibly could help improve FLTCIP itself.

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MAKING ADJUSTMENTS However, it is clear that, for the time being, the risk of future premium increases remains.

LET THE BUYER BEWARE

Despite the recent large premium increase, it is possible that similarly large premium increases could occur in the future, says Paul Forte, chief executive officer at Portsmouth, NH-based Long Term Care Partners, LLC (LTCP), the affiliate of John Hancock Life and Health Insurance Co. that administers FLTCIP. Forte says while this year’s large premium increase attempted to build in a larger margin against claims costs than in the past, LTCP nonetheless cannot guarantee that premium increases similar to the magnitude of those announced in July will not occur again.

LTCP justified the premium increase based on low investment earnings tied to low interest rates, and higher than expected claims by policyholders. Many other long-term care programs have seen similar trends and have successfully persuaded state regulators to authorize similar large premium increases.

The inability to limit premium increases is leading critics, even dry academics, to use strong, unequivocally negative language about long-term care insurance. “Long-term care insurance is a lousy product – although it insures households against risk, it imposes a new risk: the risk that it will increase premiums to unaffordable levels, which is what we have seen in recent years,” says Anthony Webb, research director of the Retirement Equity Lab at the New York City-based New School’s Schwartz Center for Economic Policy Analysis.

But the fact remains that the cost of longterm care can impoverish couples, in particular the surviving spouse. Thus, some say that premium increases notwithstanding, long-term care insurance is important, and FLTCIP is among the best of policies that are available.

“I think every federal employee should consider having long-term care, and the FLTCIP is a good policy, with a good home care provision, underwritten by a good company that is financially stable and has a good claims-paying 26

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history,” says Micah Shilanski, an Anchorage, AK-based certified financial planner (CFP®) and founder of the federal retirement website plan-your-federal-retirement.com. Shilanski estimates that, of his large client base of federal employees, 55 percent have long-term care insurance and, of those, 80 percent use FLTCIP. “Comparing the FLTCIP to what is in the private sector, there are a lot of benefits and, in many cases [such as upon commencing employment and in some open seasons], less underwriting.

This premium increase didn’t change my advice for long-term care. The key question is: Do you have a need?”

“What the federal plan offers is as good as anything else out there,” agrees Mark Keen, CFP®, a partner at Fairfax, VA-based financial planner Keen & Pocock, and a longstanding columnist for narfe magazine. Keen also advises that whether use of long-term care insurance makes sense depends on the situation of the particular federal family member.

OPTIONS FOR REFORM

As this issue went to press in early November, it was possible that congressional hearings on the FLTCIP premium increases could take place in November or December. There are a variety of policy options that could be offered to improve the program. Some are unlikely to be adopted because they would cost the government money and, therefore, in the current political climate, would not get the votes to pass, says NARFE Deputy Legislative Director John Hatton. Among those options are mandating an employer contribution, such as is the case for the Federal Employees Health Benefits Program and the Thrift Savings Plan; providing a tax exclusion from gross income for any premiums paid for long-term care insurance; or a congressionally authorized federal cash contribution to the FLTCIP experience fund to maintain its solvency.

As for possible ways to limit future premium increases, some, including NARFE, have called for legislation to require FLTCIP to acquire reinsurance to protect against the risk of inac-

curate actuarial assumptions. The insurer, John Hancock, would be required to buy insurance from another (reinsurance) company to protect against the risk that premiums (including allowable, limited increases) would not be sufficient to meet the liabilities of the program. This could carry additional cost, but would provide price stability by ensuring that someone else besides ratepayers would hold ultimate liability for premium increases and have some “skin in the game.”

To address the issue of premium stability, in addition to the possibility of reinsurance, NARFE also is advocating for additional oversight and actuarial review beyond that given by the Office of Personnel Management (OPM).

That could be accomplished through a specific FLTCIP or federal benefits oversight board, using the expertise of the actuaries with the Centers for Medicare & Medicaid Services, or soliciting independent expert review of the actuarial assumptions underlying the contract.

“OPM should have an independent, external advisory body with good actuaries for all its benefits programs, including FLTCIP, similar to [the Medicare Payment Advisory Commission, an independent body that advises Congress on issues affecting the administration of the Medicare program and issues reports each year], given $100 billion a year is being spent on these programs,” says Walton Francis, an economist and public policy analyst who prepares the CHECKBOOK’s Guide to Health Plans for Federal Employees, and who is himself a FLTCIP policyholder. “That is long overdue, and in this case, had that been in place, the external body might have said your assumptions are not safety-proof. I think NARFE has stepped up to the plate on this issue with this and its other proposed reforms.”

Another legislative option NARFE is considering recommending is the creation of another federally sanctioned product, such as offering a “hybrid” insurance policy. This product would combine a traditional life insurance policy, which generally features premiums that do not increase, with a long-term care policy. Such policies do exist in the private marketplace but

they are more expensive than long-term care policies alone.

“In addition to traditional long-term care insurance, there are many other insurance products that offer long-term care benefits,” notes Genworth Financial spokesperson Julie Westermann.

CRITICAL CHOICES

Three years ago, in a narfe magazine story on FLTCIP, NARFE member Carol Amano noted that a large FLTCIP premium increase in 2009 had taxed her ability to stay in the program,

Despite the recent large premium increase, it is possible that similarly large premium increases could occur in though she nevertheless did. She noted that a future similar increase could cause her to withdraw from the program.

The future arrived a great deal sooner for Amano than she expected, when she and other FLTCIP policyholders received letters in July from LTCP giving them until September 30 to choose whether to stay in the program and pay the higher premium, stay in the program and accept reduced benefits in exchange for reduced premiums, or withdraw from the program.

After comparing options, Amano, who faced a 113 percent increase, decided to take a reduced form of coverage that would increase her premiums by 80 percent while reducing inflation protection from 4 percent to 2.65 percent, which she figures will force her to pick up a considerable amount of the cost of any long-term care she needs.

But some respondents to a narfe magazine reader survey said they were, indeed, dropping W W W. N A R F E . O R G

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MAKING ADJUSTMENTS out of the program. “I enrolled in the FLTCIP when it was originally offered. A big selling point was that one should purchase the insurance now as it would be rare that there would be future rate increases for this large group of people,” said one respondent. “So I purchased a plan with decent inflation increases at the time. There is no way on earth I am going to pay another cent for this insurance. This is the second increase, and I feel deceived.”

APPROACHING LONG-TERM CARE

Long-term care deals with protecting against a contingency – the possibility of losing major bodily or cognitive functions in a manner that incapacitates the individual for a substantial amount of time and, as a result, income, savings and other assets would be depleted to pay for the high cost of needed care. The most common scenario is end-of-life deterioration. But there are other circumstances, including permanent physical limitations caused earlier in life through accidents, illnesses, wartime combat and the like. The care provided under FLTCIP and other long-term care programs is custodial care, which means assisting with daily living activities.

Generally not covered under FLTCIP (and other long-term care policies) is acute health care, such as physical therapy and the administration of medicines, which is the domain of health insurance.

According to data from the U.S. Department of Health and Human Services: • Someone turning age 65 today has almost a 70 percent chance of needing some type of longterm care services and support in their remaining years.

• Women need care longer (3.7 years) than men (2.2 years).

• One-third of today’s 65-year-olds may never need long-term care support, but 20 percent will need it for longer than five years.

While long-term care is a significant potential need for a large swath of the population, some planners and benefits researchers, including Keen, Francis and Webb, say it is becoming clear that long-term care insurance is not 28

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a product needed by everyone and that the decision of whether to take it or not may require considerable deliberation.

Those who are relatively affluent can afford to self-insure by setting aside some funds against the possibility of needing it for longterm care and/or pay for long-term care costs as they are incurred. At the other end, those who have few assets or low incomes are unlikely to be able to afford the premiums or will see too severe a dent in their living standard to make having the coverage worthwhile, given that if they are indigent they likely will qualify for Medicaid for custodial care.

Long-term care insurance tends to be viewed, most prevalently, as a couples’ benefit – to prevent one partner from having to deplete his or her retirement savings to provide care for the ailing spouse.

More than 96 percent of FLTCIP enrollees chose either to accept the increase or reduce benefits.

ADJUSTING

Among the 170,000 FLTCIP enrollees who submitted a response by October 7 to LTCP’s July letter announcing the increase, more than 96 percent chose either to accept the increase or to take one of the benefit reduction options, according to LTCP. Less than 4 percent chose to discontinue coverage or receive a “paid-up” option, which would allow enrollees to stop paying premiums but still have money in their program account to help them pay for long-term care costs, LTCP said.

Despite the September 30 deadline to make a decision on taking one of the offered benefit reduction options, OPM and FLTCIP stated that

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MAKING ADJUSTMENTS they would allow policyholders an additional 30 days, starting when they receive letters from LTCP confirming new policies, to reconsider their changes or make new ones, with any changes reflected in subsequent premium adjustments.

And even after that deadline, policyholders can take steps to reduce their premiums by limiting their coverage, though likely with a somewhat smaller range of options, such as through reducing the amount of inflation protection, the duration of coverage or the maximum daily payouts, as personalized options will not be available. They also may drop the program altogether at the end of any given month. The consequence of waiting to make such adjustments would be to pay the new, higher premium rate as of the effective date, November 1, while they make their decisions.

NARFE has attempted to counsel members regarding their options. In September, NARFE provided a one-hour webinar and questionand-answer chat session with NARFE staff and LTCP, which is still posted on the NARFE website. More than 100 questions were answered. LTCP counselors also are available to provide individualized assistance to policyholders and potential policyholders, though they do not provide the comprehensive financial planning that a financial planner would.

They can be reached at 800-582-3337 from 8 a.m. to 6 p.m. ET (TTY, 800-843-3337) and by email at www.LTCFEDS.com/SecureEmail.

Further resources are available on the FLTCIP website at www.ltcfeds.com/. For many, consulting a financial planner may be advisable because detailed financial analysis is beyond the support that will be provided by LTCP. For those who have spent a long time in FLTCIP, their policies may have accumulated enormous value in daily and maximum benefit amounts, and simply dropping the plan could represent a huge financial error, Francis notes.

For many, reducing the duration of coverage or inflation protection level may be the most feasible way to reduce premium costs, particularly 30

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since many may have overestimated the amount of time they likely will need care.

A variety of factors can govern whether and how much long-term care coverage to retain (or obtain, if not already covered). They include: • Geography. Shilanski notes that his home state of Alaska has among the highest costs of care, with the daily cost of long-term care in the range of $450 in Alaska nursing homes, compared to from $180 to $200 per day in Arizona.

• Cost of care by site. Nursing home care is the most expensive, followed by assisted living care, followed by home health care. Cost-of-care estimates are available on the FLTCIP website.

• Individual and family medical history. For those considering dropping FLTCIP in favor of a private long-term care plan, obtaining long-term care insurance requires underwriting, which, if a medical condition has arisen since joining FLTCIP, supports staying in the plan. Too, a family predisposition to certain debilitating medical conditions or signs that such conditions, such as Alzheimer’s disease, may be impending, may support joining or staying in the program.

• Family support. A realistic estimation of how much care from family can be expected or relied upon is an important consideration.

• Age. The strategy for those approaching an age at which they are likely to use the care, such as their 70s and 80s, is vastly different than for individuals in their 50s and 60s, who may have decades before they use it. Inflation protection, for example, is far more important for the younger group.

• Benefits accrued to date. It is much easier to walk away from a plan and examine other options if there are few benefits accrued.

• Financial condition. Again, for the wealthy, self-insurance likely will be preferred, while for those with more modest means, Medicaid likely will kick in. Caution: Those considering the latter option will want to research state Medicaid websites and talk to a state Medicaid counselor.

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

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My

Medicare Adventure As a federal retiree approaches 65,

he and his spouse face a big decision: What to do about MEDICARE coverage and the FEHBP?

I WAS BORN IN 1953, RIGHT IN THE MIDDLE OF THE POST-WORLD WAR II BABY BOOM. I started working for the federal government as a young man, completed 35 years of service and retired to launch a new career as a writer. My health is nearly perfect, knock on wood.

In 2018, however, like more than 10,000 Americans every day, I will turn 65, and my wife and I will have to make decisions about Medicare.

I have no personal experience with Medicare. My wife handled her mother’s medical paperwork, and my own parents sadly did not live long enough to qualify. So I probably know less about the system than most people.

In the past year or so, however, several fellow federal retirees who know I write for narfe magazine have asked me what we plan to do.

I answer with a simple question: “I’m not sure yet. What are you going to do?” or, “What did you do?” Not only does that deflect the 32

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conversation from my own failure to pay attention, but it also should, theoretically, offer me valuable information.

It didn’t. “Well, we just tried to do what made sense,” said one friend. “I’m not really sure what I did,” said a second. “Are you going to write about this? I’d like to read that!” said a third.

It soon became clear: My wife and I were going to have to get the information we needed on our own.

SEARCHING FOR INFORMATION

We started our search on the website of the Office of Personnel Management (OPM), www.opm.gov.

We thought specific issues related to the interplay of the Federal Employees Health Benefits Program (FEHBP) and Medicare required a level of understanding of both programs the Medicare website (www.medicare.gov) would not provide.

On its site, OPM offers a 20-page booklet titled “The Federal Employees Health Benefits Program and Medicare,” which answers questions about how FEHBP and Medicare work together to provide health benefits coverage to active or retired federal employees covered by both programs.

It explains what Medicare does and doesn’t cover, who is eligible for Medicare, and how benefits are coordinated between Medicare and FEHBP plans.

Unfortunately, the brochure is difficult to understand unless you already know a good deal about the subject. OPM’s FastFacts two-page fact sheet on the subject is a much simpler introduction to the topic.

ADVICE FROM A FEDERAL BENEFITS COUNSELOR

Luckily, OPM isn’t the only place on the internet where federal employees and annuitants can get help. A number of federal employee websites offer helpful guidance and suggestions. But the best, simplest and most comprehensive information I received came from federal employee benefits counselor Tammy Flanagan — and I found it on NARFE’s own website.

During the 2015 Federal Benefits Open Season, Flanagan conducted a webinar for NARFE members who are “confused” about the FEHBP and Medicare. NARFE members can find it at 34

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dventure www.narfe.org/member/FederalBenefits Institute/. (Just before this issue went to press, Flanagan presented a second webinar on the topic for NARFE, updating some of the information in her first one. I will be viewing that webinar, too. It can be found at the same address.)

In her webinar, Flanagan immediately reassured her audience that “Medicare is one of the most perplexing topics for federal employees.”

As I suspected, I was not alone. And she also said, “You don’t have to enroll in Medicare,” which I did not know.

I learned that Medicare is divided into four parts: Part A provides insurance in case I become hospitalized. It pays for inpatient hospital care, skilled nursing facility care, and some home health care and hospice care. It’s free to Americans who paid Medicare taxes while working and their spouses – which includes all federal employees and annuitants who worked for the government after 1983.

Flanagan’s guidance is clear: Sign up for Part A as soon as you become eligible.

Part B involves medical insurance. It helps pay for doctor’s services, ambulance services, outpatient hospital care, x-rays and lab tests, medical equipment and supplies, and some forms of preventive care and services including physical and occupational therapy.

Unlike Part A, Part B is not free. For most people, the cost is currently either $105 or $122 per month. For those whose modified gross income on their tax return is above a certain amount, it can be much more. And if you don’t sign up for Part B when you are first eligible, your monthly premium can go up 10 percent for each full 12-month period you could have had Part B, but didn’t sign up for it. (This does not apply to active federal employees because individuals who have group coverage provided by an employer for whom they are still working can delay enrolling in Part B. When they eventually retire or leave work, they have eight months to sign up for Part B without being subject to the late penalty.)

OPM and the Social Security Administration estimate that as many as 27 percent of FEHBP enrollees ages 65 or older may not have Part B, and that participation for newly eligible retirees has decreased over the past decade.

Part C involves Medicare Advantage plans.

Should we carry an FEHBP plan Medicare Advantage Plans are alternatives to Medicare offered by private companies. You still get Medicare benefits, but you get them from a private health care provider instead of the government — and some plans may offer extra coverage and have different out-of-pocket costs and rules for getting medical services than Medicare itself has. In return, Medicare pays a fixed amount to the provider for your care each month.

“Most federal employees don’t use Medicare Advantage plans because they use their FEHBP plan in addition to Medicare,” Flanagan explained. That made sense to me, so I crossed off Part C from additional consideration.

Finally, in Medicare Part D, private companies provide coverage for the costs of prescription drugs, and you pay a monthly premium for that service. For Flanagan, it’s a no-brainer: If you keep your FEHBP plan, don’t take it.

Even OPM’s booklet is unambiguous on Part D: “It will almost always be to your advantage to keep your current FEHB coverage without any changes,” OPM writes.

THE PART B DECISION

Early in our decision-making process, my wife and I decided we would not get rid of our FEHBP coverage. While ending FEHBP would save us a good deal of money, there are significant holes in Part B coverage.

If I ended my FEHBP enrollment and had Medicare Part B only, I would be required to pay 20 percent of the cost of my doctor’s fees; there’s no limit to the deductibles we would have to pay; and I would have to pay for Part D coverage for prescription drugs – which we’ve already established is not as good as the coverage my FEHBP plan, or nearly any FEHBP plan, provides.

For someone like me, whose parents died of natural causes before age 65, it’s just too much risk for the temporary monetary reward. It’s also true that while 93 percent of all health care providers accept Medicare, some do not — and it’s easier to find a provider when you have supplemental coverage.

Now, should we decline Part B, or carry both an FEHBP plan and the additional coverage Medicare Part B offers? We’ve reached the nub of the problem. Currently, we have a nationwide fee-for-service plan with a preferred provider organization.

and the additional coverage Medicare Part B offers? We’ve reached the nub of the problem.

Every FEHBP plan has a brochure, available on OPM’s website at www.opm.gov/healthcareinsurance/healthcare/plan-information/plans/.

Section 9 of every plan brochure explains how that plan links with Medicare Part B, which makes it easier to compare plans.

I looked at our current plan’s brochure and found that if we enroll in Part B, our plan waives all co-payments for all office and outpatient visits and allergy injections; the coinsurance for services billed by physicians, other health care professionals and facilities; and all of my calendar-year deductibles.

It’s a pretty good deal, especially when, by taking Part A for free, the plan waives co-payments and coinsurance for hospital admission, and deductibles for inpatient care in treatment facilities.

My parents’ early deaths have made me a “belt and suspenders” person: Aware that my heredity makes me vulnerable to serious illness, I do not want to leave my family unprepared for health catastrophes that might come earlier for me than for others.

Because of this, we are inclined toward taking Part B and also remaining in the FEHBP. But I will do my research this Open Season and look for a cheaper plan that may be as good a fit with Part B coverage as my current plan.

OPM’S VIEWPOINT

According to Samuel Schumach, OPM’s press secretary, OPM is trying to help.

“We have encouraged carriers to offer benefits such as reduced cost-sharing under hospital, medical and pharmacy benefits for [FEHBP] members with Part B,” Schumach explains.

In its annual letter to insurers this year, OPM asked them “to adopt design changes or member education efforts that encourage those enrollees eligible for Medicare to evaluate the additional benefits available to them through Part B,” says Schumach. “OPM has also encouraged carriers to improve coordination for pharmacy benefits W W W. N A R F E . O R G

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covered under Part B and FEHB.” Last year, 17 FEHBP plans offered new benefit incentives to encourage Part B enrollment, and 45 plans offered help to employees and retirees on the benefits of Medicare enrollment for those who age into eligibility.

“There are advantages for those that choose to take part in Part B coverage,” Schumach concludes. “We highly suggest that you review carefully the benefits of taking Part B, and make a decision that best suits your health care needs.”

A FELLOW RETIREE’S OPINION

Dr. Tina Levine, a NARFE member living in California, warned me about other issues I might face. “I was a proud federal worker, and I was saddened mightily” by problems she experienced, she says.

Levine is a federal retiree, but her husband is not. “When I signed up for Medicare, I had no problem doing so online. It’s very simple,” she explains. However, her husband did not sign up for Medicare at age 65 because Tina was still working at the time and he was covered by Tina’s FEHBP plan. A special Medicare form was therefore required for him to sign up when she retired. Medicare has an eight-month deadline by which the form needs to be completed to avoid a penalty.

The form needed to be certified by OPM, her employer of record. Tina cited repeated difficulties in reaching OPM by phone and fax. She also mentioned OPM’s inability to understand exactly what information the form required, and its unwillingness to respond quickly to help her meet Medicare’s deadline.

“I had a clock ticking, and there was just nothing I could do!” she told me. Eventually, her persistence, and an understanding person at the Social Security Administration (which administers the Medicare program), enabled her husband to get the Part B coverage he wanted.

Tina and her husband also were caught offguard by how her FEHBP coverage changed when they enrolled in Part B. Her husband needed to see a particular type of specialist, and there were no providers of that kind in her area who accepted Medicare payments. So he had to use a non-Medicare provider, and her FEHBP only paid what it would have paid had 36

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Medicare covered the balance of the costs.

“We had expected they would have paid what they had been paying before we signed up for Medicare,” she explains. “I don’t think most people know that seeing a non-Medicare doctor is not a simple thing, and if you have FEHBP and think your plan is going to cover the cost of your visit, you’re in for a rude awakening. They may cover 20 percent of it.

“If you’re aware of the fact that your FEHBP policy becomes a Medigap policy (a plan that merely supplements Medicare payments), you realize it’s really not going to pay very much. Do you need a Cadillac policy if it’s only going to pay 20 percent?”

The entire process “has been a source of great frustration,” she concludes. But she does appreciate that, with both Part B and her FEHBP plan, “there’s very little paperwork for me. I basically get all my medical expenses covered without lifting a finger.”

WHAT I WILL DO

This Open Season will be critical for my wife and me. But we’ve got a plan. We will: • Consider less expensive FEHBP plans, from the standpoint of both health care and prescription medications.

• Think about establishing a health savings account, which, when used with a high-deductible plan, allows us to save money tax-free against my anticipated future medical expenses.

Some plans offer this, but not all.

• Attend an Open Season health fair.

• Revisit the long-term care, vision and dental plans I have thus far declined, and use OPM’s plan comparison tool to review what different plans offer.

• Remember that NARFE offers a help line for members and has special expertise in this area, and call if we need help.

• Keep Tina Levine’s experience in mind, and be persistent if obstacles arise.

Finally, we will follow Tammy Flanagan’s advice to spend as much time choosing a health plan as we do in planning our next vacation.

Just for the record, we are obsessive vacation planners!

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

Quality health plans & benefits Healthier living Financial well-being Intelligent solutions

It’s the year to compare Aetna Direct — tailored to federal retirees to deliver a new level of value With Aetna Direct, your premiums could go down

A lot can change in a short period of time. And the health plan that you chose when you retired may no longer be what’s best for you. So be sure to shop around this Open Season.

Are your premiums too high?

Here’s what you get with an affordable Aetna Direct plan:

If you’re a federal retiree with Medicare Part A and Part B, you’ll be surprised what you could save with Aetna Direct. Don’t pay too much for your health plan. Shop and compare.

•

Low monthly premiums – below the federal average

•

Waived deductibles & copayments – for medical services (if Medicare Part A and Part B are primary and your provider accepts Medicare assignment)

•

Your own savings fund – Only Aetna Direct comes with a fund to help pay prescription costs or Part B premiums ($900 self only, $1,800/self plus one or self and family)

Learn more Visit aetnafeds.com/aetnadirect Or call 1-855-277-4356 Act now! Open Season ends December 12 Federal retirees with Medicare Part A and B, be sure to check out Aetna Direct.

Health benefits and health insurance plans are offered and/or underwritten by Aetna Life Insurance Company (Aetna) and its affiliates. This is a brief description of the features of this Aetna health benefits 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 www.aetnafeds.com. ©2016 Aetna Inc.

2016331

Open Season Report

O

PEN SEASON REPORT

2016 OPEN SEASON: NOVEMBER 14-DECEMBER 12

FEHBP PLAN CHANGES

T

he 2016 Federal Benefits Open Season for Federal Employees Health Benefits Program (FEHBP) enrollment changes ends Monday, December 12. You should receive this issue of narfe magazine in late November, so there is still time to review health plans and make an informed decision.

FEHBP participants will be able to choose from 245 health plan choices during this Open Season.

If you are a federal employee and not presently enrolled in the FEHBP, you may enroll during Open Season if you are not otherwise excluded from coverage because of the nature of your appointment.

If you are a federal annuitant and are not presently covered by the FEHBP as an enrollee or a family member, you cannot enroll in the FEHBP during Open Season, except if you previously suspended your FEHBP enrollment in favor of coverage under TRICARE, TRICARE For Life, a Medicare Advantage HMO plan, CHAMPVA, Medicaid or as a Peace Corps volunteer.

Open Season changes for em38

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ployees are effective at the beginning of the first pay period after January 1, 2017.

Open Season changes made by annuitants and survivor annuitants are effective on January 1, 2017, and the premium changes will be effective in the February 1, 2017, annuity payments.

PLAN BROCHURES

When deciding which plan is best for you, be sure to review your current plan’s 2017 brochure, as well as the brochures for other plans you are considering. The 2017 plan brochures for all of the FEHBP plans can be viewed online and downloaded at www. opm.gov/healthcare-insurance.

Each brochure is formatted the same way, with sections on specific topics, such as “How Our Plan Has Changed,” “Your Costs for Covered Services” and “Coordinating Benefits With Other Coverage.” And all plan brochures have a box on the cover that provides the page numbers to find the new premium rates and the plan’s changes for the new year.

Since the implementation of the 2010 Affordable Care Act,

all plans provide a Summary of Benefits and Coverage with easyto-understand information about out-of-pocket costs, coverage and rights of enrollees.

PREMIUM CHANGES

The average total premium increase in the FEHBP for 2017, based on all of the enrollees in all of the plans, is 4.4 percent. The average premium increase for enrollees is 6.2 percent.

The 4.4 percent figure is not an across-the-board increase per plan. It is the weighted average increase for the total premium (government and employee share) for all of the plans in the FEHBP. This means that some plans’ premiums decreased, some did not change at all and some increased.

Fee-for-service (FFS) plans’ total premiums will rise an average of 4.1 percent, while local health maintenance organization (HMO) plans’ premiums will increase an average of 6.4 percent.

Federal employees with Self Only coverage will pay, on average, $5.27 more per two-week pay period; those with Self Plus One coverage will pay an average of

$10.32 more per pay period, and those with Self and Family coverage will see an average increase of $12.97. Employees in the Blue Cross Blue Shield Standard option, the most popular enrollment, will see bi-weekly premiums rise $5.81 for Self Only coverage, $9.46 for Self Plus One, and $15.99 for Self and Family.

There are HMO enrollees who will see very large increases in premiums and some whose premiums have dropped consider-

ably. For example, the enrollee’s share of the monthly premium for Self and Family coverage for Illinois Humana Health Plan, Inc. (enrollment code AB5) will increase by $326.16 a month for Standard option.

On the other end of the spectrum, monthly premiums for GHI New York and New Jersey Self and Family will decrease $123.13 a month for Standard option.

But even if your particular plan’s premiums are not rising

by much, make sure you read the plan brochure – particularly Section 2, “How We Change for 2017.”

This section will reveal which, if any, out-of-pocket expenses, such as co-payments and coinsurance, will increase in 2017.

When reading each plan’s brochure, note which costs are not included in meeting the plan’s yearly deductible. These out-ofpocket expenses can really add up.

—FEDERAL BENEFITS SERVICE DEPARTMENT

MEDICARE PREMIUMS: PART B AND PART D Medicare Open Season began October 15 and ends December 7.

PART B

The monthly Medicare Part B base premium for 2017 had not been announced by the time this issue went to press. NARFE will post the rate at www.narfe.org, when it is available.

PART D

The Medicare Part D prescription drug benefit is generally geared to people who do not have any employer-provided or union-provided prescription drug coverage. Under your FEHBP coverage, you simply pay copayments and/or coinsurance for your prescription drugs, so the vast majority of FEHBP enrollees will not need Medicare Part D prescription drug coverage.

Anyone covered under the FEHBP has what is known as “creditable prescription drug coverage.” This means that the FEHBP prescription drug coverage is at least as good as, if not better than, the Part D coverage.

This also means if a person with

FEHBP coverage turns down Part D when he or she is first eligible to enroll but signs up at some point in the future, he or she will not be required to pay a penalty for late enrollment in Part D. FEHBP plan brochures for 2017 contain statements certifying the creditability of each plan’s drug coverage for Part D late-enrollment purposes. These statements will be found at the beginning of each plan’s brochure, immediately before the table of contents, and will be headlined “Important Notice From (Plan’s Name) About Our Prescription Drug Coverage and Medicare.”

Part D requires a monthly premium in addition to the Medicare Part B premium. The estimated average monthly basic premium for 2017 will be about $34. Some may pay a higher monthly premium based on their income.

In 2017, enrollees in Part D may have to pay a deductible before the plan’s prescription drug coverage starts. The deductible

amount varies among plans, and some plans don’t have a deductible at all. In 2016, no plan had a deductible higher than $360.

In addition, most Medicare Part D plans have a coverage gap often referred to as a “donut hole.” The gap begins after the enrollee and the Part D plan have paid a certain amount for prescription drugs; that amount varies by plan. In 2017, once an enrollee has reached the coverage gap, he/she will pay 40 percent of the plan’s cost for covered brand name drugs and 51 percent of the plan’s cost for covered generic drugs until the enrollee’s out-of-pocket costs reach the end of the gap. Once an enrollee has reached the end of the gap, he/ she will pay only the coinsurance or co-payment amount for covered drugs for the rest of the year.

When Medicare is a person’s primary insurer, FEHBP plans will coordinate prescription drug payments with the Medicare Part D carrier.

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

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Open Season Report

FEE-FOR-SERVICE PLAN CHANGES

F

ollowing are the six fee-forservice (FFS) plans available to all employees and annuitants and the changes in benefits, taken from their brochures (Section 2, Changes for 2017).

In addition to the six open-toall plans, there are four FFS plans open to specific groups of federal employees and annuitants. For space reasons, they are not listed here. And because there are so many FEHBP health maintenance organizations (HMOs), it also is not possible to list their changes.

Premium rates for all 10 FFS plans are shown in the chart on p. 41.

The major benefit addition for 2017 in all of the plans participating in the FEHBP is coverage for applied behavior analysis for children with autism spectrum disorders.

While we have included here what we believe are the major changes, you should review the brochures, available either on the plans’ websites or at www.opm. gov/healthcare-insurance. Many plans will include clarifications of existing benefits that could be beneficial when choosing a plan.

When reviewing each plan’s changes, take note of announced changes in preferred provider organizations (PPOs). If you live in a state where your plan is changing its PPO network, you need to contact the plan and ask for a new PPO directory for 2017 to assure that your doctors, hospitals, etc., will be in the new network. Otherwise, you may wish to change plans during Open Season. Using your plan’s PPOs is a major way to save out-of-pocket costs.

American Postal Workers Union Health Plan (APWU) High Option Changes The plan’s catastrophic out-ofpocket maximum is $5,500 for Self Only and $6,500 for both Self Plus One and Self and Family if the plan’s network providers are used. The in-network deductible is $350 for Self Only and $700 for Self Plus One and Self and Family coverage. The hospice benefit has increased to $15,000 lifetime coverage, which includes advance care planning. The innetwork office visit co-payment in 2017 is $20. The plan will provide virtual office visits.

Consumer Driven Health Plan Changes The plan’s in-network catastrophic out-of-pocket maximum is $5,000 for Self Only and $10,000 for Self Plus One and Self and Family coverage; the out-ofnetwork catastrophic maximum is $13,700 for Self Plus One and Self and Family (Self Only remains $10,200). The deductible is $800 for Self Only and $1,600 for Self Plus One and Self and Family. The plan has increased the hospice benefit to $15,000 lifetime coverage, which includes advance care planning. The plan will include virtual office visits.

Blue Cross Blue Shield (BCBS) Planwide Changes The plan will provide annual preventive care benefits for screening mammography using digital technology. Nonsurgical treatment of amblyopia and strabismus for children up to age 21 will be provided. Prior approval for sleep studies performed outside the home will be required.

The WalkingWorks wellness program no longer will be available.

OPM ROLLS OUT A NEW PLAN COMPARISON TOOL The Office of Personnel Management (OPM) is rolling out a new online health plan comparison tool this Open Season that it says will be more consumer friendly.

John O’Brien, OPM director of health care and insurance, revealed some of the improvements at NARFE’s National Convention

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in August. O’Brien said the new comparison tool will allow users to sort the cost of monthly premiums, annual deductibles and annual out-of-pocket maximums. It also will allow users to list plans from highest to lowest cost or lowest to highest. And for all plans available to the user, it will present a com-

parison list showing 11 items most people consider when shopping for health insurance. Slider bars will enable users to easily refine their search among plans. It also provides information icons so users can obtain definitions of key insurance terms. The comparison tool is available at www.opm.gov.

KEY: Employees pay biweekly Annuitants pay monthly

2017 PREMIUMS — FEE FOR SERVICE

Plan Option Code Total Premium Gov’t Pays Enrollee Pays

biweekly | monthly biweekly | monthly biweekly | monthly APWU HEALTH PLAN High Self High Self & Family High Self Plus One CDHP Self CDHP Self & Family CDHP Self Plus One

Enrollee Increase / Decrease biweekly | monthly

OPEN TO ALL 471 472 473 474 475 476

$315.96 | $684.58 $758.32 | $1,643.03 $663.52 | $1,437.63 $247.24 | $535.69 $593.35 | $1,285.59 $543.91 | $1,178.47

$221.67 | $480.29 $505.22 | $1,094.64 $475.79 | $1,030.88 $185.43 | $401.77 $445.01 | $964.19 $407.93 | $883.85

$94.29 | $204.29 $253.10 | $548.39 $187.73 | $406.75 $61.81 | $133.92 $148.34 | $321.40 $135.98 | $294.62

$14.29 | $30.95 $37.50 | $81.26 $32.66 | $70.77 $9.87 | $21.38 $23.69 | $51.32 $21.71 | $47.04

BLUE CROSS BLUE SHIELD SERVICE BENEFIT PLAN Standard Self 104 $327.66 | $709.93 Standard Self & Family 105 $759.45 | $1,645.48 Standard Self Plus One 106 $716.56 | $1,552.55 Basic Self 111 $284.90 | $617.28 Basic Self & Family 112 $678.81 | $1,470.76 Basic Self Plus One 113 $640.43 | $1,387.60

$221.67 | $480.29 $505.22 | $1,094.64 $475.79 | $1,030.88 $213.68 | $462.96 $505.22 | $1,094.64 $475.79 | $1,030.88

$105.99 | $229.64 $254.23 | $550.84 $240.77 | $521.67 $71.22 | $154.32 $173.59 | $376.12 $164.64 | $356.72

$5.81 | $12.58 $15.99 | $34.66 $9.46 | $20.50 $2.74 | $5.94 $9.39 | $20.36 $3.89 | $8.43

GEHA BENEFIT PLAN High Self High Self & Family High Self Plus One Standard Self Standard Self & Family Standard Self Plus One HDHP Self HDHP Self & Family HDHP Self Plus One

311 312 313 314 315 316 341 342 343

$323.13 | $700.12 $767.79 | $1,663.55 $710.88 | $1,540.24 $215.45 | $466.81 $509.51 | $1,103.94 $463.21 | $1,003.62 $226.81 | $491.42 $536.39 | $1,162.18 $487.65 | $1,056.58

$221.67 | $480.29 $505.22 | $1,094.64 $475.79 | $1.030.88 $161.59 | $350.11 $382.13 | $827.96 $347.41 | $752.72 $170.11 | $368.57 $402.29 | $871.64 $365.74 | $792.44

$101.46 | $219.83 $262.57 | $568.91 $235.09 | $509.36 $53.86 | $116.70 $127.38 | $275.98 $115.80 | $250.90 $56.70 | $122.85 $134.10 | $290.54 $121.91 | $264.14

$1.11 | $2.40 $5.64 | $12.23 $5.93 | $12.85 $2.07 | $4.49 $4.90 | $10.61 $4.45 | $9.65 $2.70 | $5.85 $6.39 | $13.83 $5.81 | $12.58

MHBP Value Self Value Self & Family Value Self Plus One Standard Self Standard Self & Family Standard Self Plus One HDHP Self HDHP Self & Family HDHP Self Plus One

414 415 416 454 455 456 481 482 483

$238.97 | $517.77 $577.52 | $1,251.29 $566.20 | $1,226.77 $271.53 | $588.32 $631.03 | $1,367.23 $625.03 | $1,354.23 $264.66 | $573.43 $614.98 | $1,332.46 $585.71 | $1,269.04

$179.23 | $388.33 $433.14 | $938.47 $424.65 | $920.08 $203.65 | $441.24 $473.27 | $1,025.42 $468.77 | $1,015.67 $198.50 | $430.07 $461.24 | $999.35 $439.28 | $951.78

$59.74 | $129.44 $144.38 | $312.82 $141.55 | $306.69 $67.88 | $147.08 $157.76 | $341.81 $156.26 | $338.56 $66.16 | $143.36 $153.74 | $333.11 $146.43 | $317.26

$0.59 | $1.28 $1.43 | $3.10 $1.40 | $3.04 $-2.10 | $-4.55 $-4.88 | $-10.57 $-20.51 | $-44.44 $1.29 | $2.81 $3.01 | $6.53 $2.88 | $6.23

NALC High Self High Self & Family High Self Plus One CDHP Self CDHP Self & Family CDHP Self Plus One Value Self Value Self & Family Value Self Plus One

321 322 323 324 325 326 KM1 KM2 KM3

$299.07 | $647.99 $671.56 | $1,455.05 $651.98 | $1,412.62 $214.26 | $464.23 $464.53 | $1,006.48 $463.49 | $1,004.23 $175.85 | $381.01 $381.41 | $826.39 $380.37 | $824.14

$221.67 | $480.29 $503.67 | $1,091.29 $475.79 | $1,030.88 $160.70 | $348.17 $348.40 | $754.86 $347.62 | $753.17 $131.89 | $285.76 $286.06 | $619.79 $285.28 | $618.11

$77.40 | $167.70 $167.89 | $363.76 $176.19 | $381.74 $53.56 | $116.06 $116.13 | $251.62 $115.87 | $251.06 $43.96 | $95.25 $95.35 | $206.60 $95.09 | $206.03

$4.85 | $10.51 $9.21 | $19.94 $13.91 | $30.14 $3.50 | $7.60 $7.43 | $16.10 $7.17 | $15.55 $0.86 | $1.87 $1.75 | $3.81 $1.50 | $3.24

SAMBA High Self High Self & Family High Self Plus One Standard Self Standard Self & Family Standard Self Plus One

441 442 443 444 445 446

$393.68 | $852.97 $944.83 | $2,047.13 $866.10 | $1,876.55 $291.82 | $632.28 $671.20 | $1,454.27 $642.01 | $1,391.02

$221.67 | $480.29 $505.22 | $1,094.64 $475.79 | $1,030.88 $218.87 | $474.21 $503.40 | $1,090.70 $475.79 | $1,030.88

$172.01 | $372.68 $439.61 | $952.49 $390.31 | $845.67 $72.95 | $158.07 $167.80 | $363.57 $166.22 | $360.14

$38.22 | $82.80 $94.92 | $205.66 $87.57 | $189.74 $9.51 | $20.62 $21.89 | $47.43 $26.65 | $57.74

RESTRICTED

COMPASS ROSE HEALTH PLAN (members of the Intelligence Community, employees of Departments of Defense and State) High Self 421 $306.06 | $663.13 $221.67 | $480.29 $84.39 | $182.84 $6.27 | $13.58 High Self & Family 422 $734.55 | $1,591.53 $505.22 | $1,094.64 $229.33 | $496.89 $18.26 | $39.57 $197.55 | $428.02 $17.30 | $37.48 High Self Plus One 423 $673.34 | $1,458.90 $475.79 | $1,030.88 FOREIGN SERVICE BENEFIT PLAN (American Foreign Service personnel, Departments of State and Defense, USAID, Foreign Agricultural and Commercial services, other executive branch employees assigned overseas; Foreign Service retirees) High Self 401 $257.76 | $558.48 $193.32 | $418.86 $64.44 | $139.62 $1.27 | $2.74 High Self & Family 402 $637.66 | $1,381.60 $478.25 | $1,036.20 $159.41 | $345.40 $3.12 | $6.77 High Self Plus One 403 $631.36 | $1,367.95 $473.52 | $1,025.96 $157.84 | $341.99 $-0.12 | $-0.25 RURAL CARRIER BENEFIT PLAN (active and retired rural letter carriers) High Self 381 $304.30 | $659.32 $221.67 | $480.29 High Self & Family 382 $589.26 | $1,276.73 $441.95 | $957.55 High Self Plus One 383 $577.70 | $1,251.68 $433.28 | $938.76

$82.63 | $179.03 $147.31 | $319.18 $144.42 | $312.92

$-2.34 | $-5.07 $2.88 | $6.25 $2.83 | $6.14

PANAMA CANAL AREA BENEFIT PLAN High Self 431 $247.08 | $535.34 $185.31 | $401.51 High Self & Family 432 $515.77 | $1,117.50 $386.83| $838.13 High Self Plus One 433 $493.16 | $1,068.51 $369.87 | $801.38

$61.77 | $133.83 $128.94 | $279.37 $123.29 | $267.13

$2.11 | $4.56 $4.40 | $9.52 $4.21 | $9.11

Open Season Report

The maximum incentive has been increased up to $100 in a health account when you qualify for the Diabetes Management Incentive Program. Certain Food and Drug Administration-approved drugs that have multiple generic equivalent/alternative medications may be excluded from the formulary.

If you purchase a drug excluded from the formulary, you will be responsible for the full cost of that drug. Benefits will be limited for certain self-injectable drugs obtained from a source other than a pharmacy.

Standard Option Changes Preventive dental care for the topical application of fluoride or fluoride varnish will be limited to two services per person per calendar year. The plan revised its dental benefits to provide a fee schedule for each extraoral diagnostic image.

Basic Option Changes Next year, the member responsibility has been reduced for sleep studies performed in the home and billed by preferred professional providers.

Government Employees Health Association (GEHA) Overall Plan Changes Enrollees living in Georgia and Pennsylvania: Your PPO network will be Aetna Signature Administrators. Enrollees living in North or South Carolina: Your PPO network will be UnitedHealthCare.

The preventive services benefit for diabetic screening will now include adults ages 40-70 who are overweight, obese or have high blood pressure.

Iron supplements have been removed from the plan’s preventive benefit. Kidney/pancreas transplant has been added to the list of 42

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solid organ transplants that are subject to medical necessity and experimental/investigative review by the plan.

High Option Changes External hearing aid benefits will increase to $2,500 every three years for adults and to $2,500 each year for children under age 22.

When admitted to a hospital or residential treatment center for an inpatient confinement, your cost will be: $100 co-payment per admission plus 10 percent coinsurance for a PPO facility; $300 per admission co-payment plus 25 percent coinsurance to a non-PPO facility.

If specialty medications are dispensed by sources other than CVS/caremark Specialty Pharmacy and GEHA is your primary or your other coverage denies the charges, the $300 generic and preferred co-payment per prescription fill and 25 percent of the plan allowance applies; or for non-preferred, the $300 co-payment and 40 percent of the plan allowance applies per prescription fill for up to a 30-day supply.

When Medicare is primary and specialty medications are dispensed by sources other than CVS/caremark Specialty Pharmacy and Medicare denies the charges, the $300 generic and preferred co-payment plus 15 percent of the plan allowance applies; or for non-preferred, the $300 co-payment plus 30 percent of the plan allowance applies per prescription fill for up to a 30-day supply.

Standard Option Changes External hearing aid benefits will increase to $2,000 every three years for adults and $2,000 annually for children up to age

22. If specialty medications are dispensed by sources other than CVS/caremark Specialty Pharmacy and Medicare is primary and denies the charges, the $500 generic and preferred co-payment or $500 non-preferred co-payment and 50 percent of the plan allowance applies per prescription fill for up to a 30-day supply.

Mail Handlers Benefit Plan (MHBP) Overall Plan Changes How expenses are applied to the deductible will change. Expenses that accumulate to the deductible for network providers will be separate from the expenses that accumulate for non-network providers.

Prescription drugs purchased at a network pharmacy will be covered at the same benefit level whether the claims are filed electronically by the pharmacy or submitted manually on paper.

Hospice care annual day limits will increase.

Services at a network facility by a non-network hospitalist or neonatologist will be considered at the network benefit level. The plan allowance for an assistant surgeon will be based upon the professional qualifications of the individual providing the service.

The plan allowance will reduce for tertiary and subsequent surgical procedures performed during the same operative session.

Coverage for reduced intensity condition bone marrow transplants has been added.

Coverage for compression/support garments has been reclassified and expanded to include the treatment of varicose veins.

The benefit structure for hearing aids has been changed by

Open Season 2016: November 14th to December 12th (800) 222-2798 | www.apwuhp.com TOGETHER. BETTER HEALTH.®

Retirement is better

when you’re at your healthiest

Consider the APWU Health Plan’s High Option

Enroll in Medicare Part A & B for 100% coverage on covered expenses*

Select any doctor you wish*

No deductible or coinsurance on covered expenses*

Shingles shot covered at 100%

Diabetes & Hypertension care covered at 100%

Stronger prescription drug coverage than Medicare Part D alone

2017 Monthly Premiums

Self Only: $204.29 | Self Plus One: $406.75 | Self and Family: $548.39 *High Option members when Medicare Part A and B pay as primary

Open Season Report

removing the plan’s allowance as a consideration for determining benefits.

Routine foot care will be available to members with peripheral vascular disease.

A wellness program has been added that rewards members who obtain a biometric screening and/ or complete a health risk assessment, and the reward for participating in the diabetes management incentive program has been increased.

Coverage for gender reassignment surgery has been added.

Standard Option Changes Coverage for cardiac rehabilitation has been added.

Cost-sharing will increase for orthopedic and prosthetic devices received from non-network providers.

Home health services annual day limits will increase next year.

Benefits for prescription drugs purchased at a non-network pharmacy will increase to the same level as prescription drugs purchased at a network pharmacy. The member will continue to be responsible for the difference between the plan allowance and the billed amount.

Value Plan Changes Cost-sharing will increase for outpatient lab, X-ray and other diagnostic testing related to diagnosis and treatment of mental health and substance abuse when services are received from a network provider.

National Association of Letter Carriers (NALC) Overall Plan Changes The plan will cover depression screening for adults ages 18 and older and for children ages 12 through 17.

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Diabetes and high blood pressure screenings for adults will be covered.

The plan will cover the initial office visit or consultation for each new chiropractor seen.

Kidney and pancreas transplants will be covered in 2017.

High Option Changes The plan increased to 24 per year chiropractic spinal or extraspinal manipulations and office visits.

Instead of a coinsurance, there will be a $20 co-payment for an acupuncture visit rendered by a PPO provider.

The plan will cover up to 30 days of inpatient/outpatient hospice services per calendar year.

Outpatient telemental health professional services rendered by providers such as psychiatrists, psychologists or clinical social workers will be covered.

The plan will waive two $20 PPO medical office visit co-payments when you complete a health assessment for Self Only enrollees, four $20 PPO medical office visit co-payments for Self Plus One and Self and Family.

The plan will waive the prescription drug co-pays and coinsurances when Medicare Part D is the primary payer and covers the prescription drug.

Value Plan and Consumer Driven Plan Changes There is no cost next year for outpatient services and supplies for a voluntary female sterilization when rendered by an innetwork hospital or ambulatory surgical center.

Prior authorization is no longer required for partial hospitalization for mental health and substance abuse and other related services and tests.

Special Agents Mutual Benefit Association (SAMBA) Overall Plan Changes Benefits for external hearing aids will be available every three calendar years for children up to age 18 and adults.

There no longer will be a separate prescription drug outof-pocket maximum of $2,000 per person ($4,000 per family) under High option and $1,500 per person ($3,000 per family) under Standard option.

Iron supplements for children no longer will be covered.

Benefits for Preventive Care Children are now limited to covered dependents up to age 18.

The plan no longer will offer the AccordantCare program.

Standard Option Changes The catastrophic protection outof-pocket maximum for deductibles, coinsurance and co-payments has increased from $5,000 per person ($10,000 for Self Plus One and for Self and Family) per calendar year to $7,000 ($14,000 for Self Plus One and for Self and Family) for combined medical and prescription PPO expenses, and from $7,000 per person ($14,000 for Self Plus One and for Self and Family) per calendar year to $9,500 for Self Only ($19,000 for Self Plus One and for Self and Family) for combined medical and prescription non-PPO expenses.

High Option Changes The catastrophic protection out-of-pocket maximum for deductibles, coinsurance and co-payments has increased from $3,500 per person ($7,000 for Self Plus One and for Self and Family) per calendar year to $6,000 per person ($12,000 for Self Plus One and for Self and Family) per calendar year for combined medical

Online doctor visits and 24/7 NurseLine help you stay in the game.

SM

With benefits like $15 copays for virtual doctor visits and a 24/7 NurseLine at no additional cost, it’s easy to see why federal employees have trusted health plans from UnitedHealthcare for decades. It’s the coverage you need to help keep your team in the game.

Virtual Visits are not an insurance product, health care provider or a health plan. Unless otherwise required, benefits are available only when services are delivered through a Designated Virtual Network Provider. Virtual Visits are not intended to address emergency or life-threatening medical conditions and should not be used in those circumstances.

Services may not be available at all times or in all locations. NurseLineSM is for informational purposes only. Nurses cannot diagnose problems or recommend specific treatment and are not a substitute for your doctor’s care. NurseLine services are not an insurance program and may be discontinued at any time. ©2016 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Health Plan coverage provided by or through a UnitedHealthcare company. Plan designs and services vary by state. Visit uhcfeds.com to find a listing of plans available in your area. MT1070327 16-2831 10/16

Convenient access to health care starts here.

Visit uhcfeds.com to learn more.

Open Season Report

IMPORTANT SAVINGS TIPS SELF PLUS ONE and prescription PPO expenses, and from $6,500 per person ($13,000 for Self Plus One and for Self and Family) per calendar year to $9,500 per person ($19,000 for Self Plus One and for Self and Family) per calendar year for combined medical and prescription non-PPO expenses. —FEDERAL BENEFITS SERVICE DEPARTMENT

CORRECTION

The maximum monthly governnment contribution will be $480.29 for Self Only, $1030.88 for Self Plus One, and $1094.64 for Self and Family. Numbers were transposed in the November issue, p. 38.

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If you are enrolled in Self and Family coverage but have only one dependent, consider changing to Self Plus One coverage. Even if the difference in premiums is small, every dollar you save is important.

Changing to Self Plus One will provide exactly the same level of benefits you have with Self and Family coverage, and if your spouse is the dependent, he/ she still will be able to continue FEHBP coverage as a survivor annuitant at your death.

PREFERRED PROVIDERS Health plans contract with preferred doctors and facilities to accept the plan’s

allowance for services. This affects not only your part of the bill but, in most cases, it will reduce the dollar amount you must meet before catastrophic coverage kicks in.

LOWER-COST PLANS

Do the work to find a plan that best suits your medical needs and your budget, especially if you are enrolled in Medicare Parts A and B and your FEHBP coverage is secondary. Look at Consumer Driven Health Plans that provide an account with funds to be used for out-ofpocket expenses, and many plans waive deductibles and co-payments if Medicare is your primary coverage.

Open Season Report

2017 FEHBP PRESCRIPTION DRUG GUIDE

I

n the Federal Employees Health Benefits Program, prescriptions can be filled by health plans through the plan’s preferred retail pharmacies, nonpreferred retail pharmacies and the plan’s mail order service. The plans charge coinsurance and/ or co-payments for prescription drugs when they are purchased through any of these sources.

Some plans provide prescription drug plan benefits even if the plan’s annual deductible is not met. Other plans may have a specific annual deductible that must be met before the plan begins to pay prescription drug benefits.

Health plans will substitute avail-

able generic equivalent drugs for brand name drugs for prescriptions submitted to local pharmacies and mail order services, unless the prescribing physician indicates that the patient is to receive only the brand name medication.

To keep prescription drug benefit costs down for the plans, some are reducing out-of-pocket costs for generic drugs and raising them for brand name drugs. This will make prescription drugs more costly for enrollees needing life-saving and life-extending medications, which are usually brand name specialty drugs. You also will see that some plans have capped the yearly amount of out-of-pocket expenses

for prescription drugs to keep enrollees who need the expensive brand name drugs – sometimes called specialty drugs – from possible financial hardship.

Enrollees covered by Medicare Part A and Part B may note that some plans waive their own deductibles, coinsurance and copayments for hospital and medical services. These waivers do not apply to the prescription drug co-payments and/or coinsurance.

Some plans will charge lower coinsurance and co-payment rates for enrollees who are covered by Medicare Part A and Part B. In addition, there are some plans that charge Medicare enroll-

YOUR COSTS: PRESCRIPTION DRUG BENEFITS, SELECTED PLANS

48

PLAN

RETAIL PHARMACY / NETWORK

APWU - High

Generic: $10 Brand name: Preferred 25% / Nonpreferred: 40% Specialty drugs: Generic: 25% / Brand name: Preferred: 25% / Nonpreferred: 40%

Blue Cross Blue Shield - Standard

Generic: 20% of plan allowance (15% if you have Medicare) Brand name: Preferred: 30% of plan allowance / Nonpreferred: 45% of plan allowance

GEHA - Standard

Generic: Lesser of $10 or pharmacy’s usual and customary cost Brand name: 50% up to a max of $200

MHBP - Standard

Generic: $5 co-pay per presc.

Brand name: Preferred: 30% of plan allowance ( 25% if enrolled in Medicare B) + any difference between plan allowance and cost of generic unless exception obtained, limited to $200 per presc. / Nonpreferred: 50% of plan allowance + any difference between plan allowance and cost of generic unless exception obtained, limited to $200 per presc.

NALC - High

Generic: 20% of cost Brand name: Formulary: 30% of cost / nonformulary: 45% of cost (If enrolled in Medicare: NALC Senior Antibiotic generic: $0; generic: 10% of cost; formulary brand: 20% of cost)

SAMBA - Standard

Generic: $8 Brand name: Preferred: 30% of plan allowance / nonpreferred: 40% of plan allowance

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ees the same coinsurance and co-payments as non-Medicareeligible enrollees in one option, while charging Medicare enrollees smaller coinsurance and/or copayment amounts than nonMedicare enrollees in the plan’s other option.

Usually, patients will fill orders for short-term prescription drugs, such as antibiotics, at a local pharmacy. They will use mail order services for maintenance drugs, such as medications used to treat high blood pressure, high cholesterol or heart disease, etc.

It is wise to compare the prices of medications at local pharmacies with the cost of obtaining

the medications through mail order services. Many times, the cost of filling a prescription at a local pharmacy is less than the co-payment for using a mail order service. Some plans charge the full mail service co-payment even though the actual cost of the prescription drug is less than the copayment; other plans charge only the cost of the prescription drug if the actual cost of the drug is less for the mail service pharmacy than the co-payment. In other words, do not expect the mail service pharmacy to charge less than the co-payment because the local pharmacy has the prescription drug at a lower price.

Some plans have limitations on the amount and frequency of dispensing prescription drugs. Plan members should be aware of those limitations and also should be aware that more plans have priorapproval requirements before certain prescriptions can be filled.

The general rule for most plans is that refills can be obtained when 75 percent of the current supply is used up.

With some plans’ co-payments for brand name drugs increasing January 1, check your current prescription level to see if you can order a refill before the end of the year and avoid any increase.

—FEDERAL BENEFITS SERVICE DEPARTMENT

RETAIL PHARMACY / NON-NETWORK

MAIL ORDER (90-DAY SUPPLY)

50% of cost

Generic: $20 Brand name: Preferred brand name: 25% / Nonpreferred brand name: 40%

45% of plan allowance

Generic: $15 ($10 if you have Medicare) Brand name: Preferred: $80 per presc. / N onpreferred: $105 per presc.

Generic: Lesser of $10 or pharmacy’s usual and customary cost Brand name: 50% up to a max of $200 + any difference between plan allowance and cost of the drug

Generic: Lesser of $20 or the cost of the drug Brand name: 50% up to a max of $500

50% of the plan allowance + any difference between plan allowance and billed amount

Generic: $10 co-pay per presc.

Brand name: Preferred: $80 co-pay ($60 co-pay if enrolled in Medicare B) + any difference between plan allowance and generic unless exception obtained / Nonpreferred: $120 co-pay + any difference between plan allowance and generic unless exception obtained Specialty drugs: 15% of plan allowance, limited to $425 per presc.

(For 30-day supply: 15%, limited to $200 per presc.)

45% of plan allowance

Generic: NALCSelect: $5 / NALC Preferred: $7.99 / generic: $12 Brand name: Formulary $65 / nonformulary $80 (For 60 day supply: generic: $8 / formulary brand: $43 / nonformulary brand: $58) Specialty drugs: $350 (60-day supply: $250; 30-day supply: $150)

Generic: $8 Brand name: Preferred: 30% of plan allowance / nonpreferred: 40% of plan allowance

Generic: $15 Brand name: Preferred: 30% of plan allowance / nonpreferred: 40% of plan allowance

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

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49

Open Season Report

2017 FEDVIP PLANS

O

pen Season for the Federal Employees Dental and Vision Insurance Program (FEDVIP) coincides with the Open Season for the Federal Employees Health Benefits Program. Eligible individuals will be able to choose benefits that cover dental care, vision care or both.

The Office of Personnel Management (OPM) contracts with 12 insurance carriers to provide comprehensive coverage under 14 different plans.

Three types of enrollment are available: Self Only, for the enrolled employee or annuitant; Self Plus One, for the enrolled employee or annuitant and one eligible family member; and Self and Family, for the enrolled employee or annuitant and all eligible family members. For more information, go to www.benefeds. com or call 877-888-3337.

DENTAL PLANS

There are six nationwide and four regional plans. Premiums are based on rating areas (a group of ZIP codes). Each plan can have up to five rating areas. See the chart, p. 53, for premiums for nationwide plans. To find out your rating area, go to www.opm.gov and put “dental rating areas” in the FAQ Search window. For regional plan rates, go to www.benefeds.com.

NATIONWIDE PLANS

(Includes international coverage) Aetna Single High option plan • Offers in-network benefits and out-of-network benefits; • $25,000 yearly maximum per member for in-network services; • No annual deductible; • Orthodontia covered after a 12-month waiting period for 50

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adults and dependent children with no age limit ($2,000 per person lifetime maximum on covered orthodontia services); • Free add-on discounts such as fitness, vision, weight-loss programs and natural products; • Benefit provided for medically necessary/noncosmetic implants.

Delta Dental Two plan options • No waiting periods outside of orthodontia; • Expansive network of Delta Dental PPO dentists; • No ID card required to receive services and no claim forms to file – PPO dentists file the claim; • No deductible charged when using in-network; • Out-of-network services provided.

FEP BlueDental (Blue Cross Blue Shield) Two plan options • No deductible for preventive, diagnostic, intermediate or major services under either option innetwork; • Out-of-network – High option has a $50 deductible; Standard option has a $75 deductible; • Under both options, preventive and diagnostic services are paid in full when services are provided by in-network dentists; • Annual maximum – High option, $15,000 in-network; $3,000 out-of-network; Standard option, $1,500 in-network; $750 out-ofnetwork; • Orthodontia – Standard option has a 12-month waiting period; High option has no waiting period; adult orthodontia is offered.

GEHA Two plan options

• Under Standard option, orthodontia covered after 12-month waiting period with no age limitation; no waiting under High option.

• Under Standard option, the per person calendar-year maximum is $2,500; under High option, it is $35,000.

• Members enrolled in GEHA’s dental plan options will receive the same association benefits as other GEHA plan members, including hearing and vision discounts, at no additional cost; • In addition to in-network benefits, offers out-of-network benefits based on the American Dental Association fee schedule, using the same payment percentages as for in-network benefits, even in areas where access is adequate; • Benefit provided for medically necessary/noncosmetic implants.

MetLife Two plan options • In 2017, the High option maximum for nonorthodontic services is $25,000 per year; • No waiting period for orthodontia ($2,000 in-network per person lifetime maximum on covered orthodontia services under Standard option; $3,500 per person lifetime maximum under High option); • Adult orthodontia is available for the High option only with a lifetime maximum of $1,500; • Out-of-network benefit (there is a deductible for both the Standard and the High options’ out-ofnetwork services); • Benefit provided for medically necessary/noncosmetic implants.

United Concordia Single High option plan • No deductible;

METLIFE FEDERAL DENTAL PLAN

BIG NETWORK. BIGGER SAVINGS. Enroll by December 12.

With the MetLife Federal Dental Plan, Annuitants and Federal employees can choose a dental plan that offers MORE. MORE SAVINGS1 • Big discounts with in-network dentists • No out-of-pocket costs for in-network cleanings, X-rays and exams2 • Discounts apply on all services, even if the service is not covered3 MORE DENTISTS • One of the nation’s largest dental networks • Over 350,000 dentist locations MORE COVERAGE • $25,000 annual maximum per person, per year, on the high option • Covered services include services you may need such as periodontal services, implants and crowns

TO ENROLL: Call 1-877-888-FEDS or visit www.BENEFEDS.com For more information, visit FEDERALDENTAL.METLIFE.COM 1 Savings from enrolling in a dental benefits plan will depend on various factors, including plan design and premiums, how often participants visit the dentist and the cost of services rendered.

2 Subject to frequency limitation.

3 MetLife pays for only necessary dental services for the prevention, diagnosis, care or treatment of a covered condition.

Like most group benefit programs, benefit programs offered by MetLife and its affiliates contain certain exclusions, exceptions, reductions, limitations, waiting periods, and terms for keeping them in force.

Please contact MetLife or your plan administrator for costs and complete details.

1608-669245 CS L0916478135[exp1117][All States][DC,GU,MP,PR,VI] © 2016 Metropolitan Life Insurance Company, New York, NY 10166

Open Season Report

• For 2017, the annual maximum will increase to $15,000 per covered person.

• Orthodontia covered after 12-month waiting period for all members ($3,000 per person lifetime maximum on covered orthodontia services); • Coverage for certain implant prosthetics and resin crowns and an annual maximum of $10,000; • Out-of-network benefit at a lower percentage rate.

DENTAL PLANS / REGIONAL PLANS

Dominion Dental Services, Inc. Service Area: Mid-Atlantic Region, including the District of Columbia, Maryland, Pennsylvania, Delaware, most of Virginia

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and southern New Jersey.

Two dental health maintenance organization (HMO) options, Select Standard and Select High • The only dental HMO plan offered in the FEDVIP program; • No maximum dollar limits, waiting periods or deductibles; • Covered benefits include cleanings, fillings, endodontics, periodontics, crowns and bridges, implants and orthodontics for adults and children; • Predetermined fees (fixed copayments); • Access to one of the largest dental HMO networks in the Mid-Atlantic.

state and some ZIP codes in Pennsylvania, Connecticut and New Jersey.

• 100 percent coverage for all in-network dental services; • Out-of-network benefit, even in areas that meet access, that pays benefits up to a scheduled maximum; • Orthodontia covered after a 12-month waiting period for adults and dependent children ($2,000 per person lifetime maximum on covered orthodontia services); • Nonorthodontia annual maximum is $5,000; • Annual maximum rollover feature.

EmblemHealth Service Area: All of New York

Humana Service Area: All of Alabama,

2017 PREMIUMS - NATIONWIDE DENTAL PLANS PLAN NAME

KEY: Employees pay biweekly Annuitants pay monthly

RATING Region*

SELF ONLY biweekly | monthly

SELF PLUS ONE biweekly | monthly

SELF AND FAMILY biweekly | monthly

1 2 3 4 5

$14.52 | $31.46 $15.98 | $34.62 $17.00 | $36.83 $18.75 | $40.63 $20.35 | $44.09

$29.03 | $62.90 $31.95 | $69.23 $34.00 | $73.67 $37.50 | $81.25 $40.71 | $88.21

$43.55 | $94.36 $47.93 | $103.85 $51.00 | $110.50 $56.25 | $121.88 $61.06 | $132.30

$8.81 | $19.09 $9.59 | $20.78 $10.34 | $22.40 $10.90 | $23.62 $12.44 | $26.95

$17.62 | $38.18 $19.19 | $41.58 $20.67 | $44.79 $21.78 | $47.19 $24.88 | $53.91

$26.43 | $57.27 $28.78 | $62.36 $31.02 | $67.21 $32.68 | $70.81 $37.32 | $80.86

1 $16.79 | $36.38 2 $18.41 | $39.89 3 $20.18| $43.72 4 $21.46 | $46.50 5 $24.95 | $54.06

$33.58 | $72.76 $36.81 | $79.76 $40.36 | $87.45 $42.93 | $93.02 $49.91 | $108.14

$50.37 | $109.14 $55.22 | $119.64 $60.54 | $131.17 $64.40 | $139.53 $74.86 | $162.20

AETNA PPO

High

DELTA DENTAL PPO

Standard

High

1 2 3 4 5

FEP BLUEDENTAL PPO

Standard

1 2 3 4 5

$9.96 | $21.58 $11.32 | $24.53 $12.53 | $27.15 $13.21 | $28.62 $14.61 | $31.66

$19.93 | $43.18 $22.64 | $49.05 $25.06 | $54.30 $26.42 | $57.24 $29.21 | $63.29

$29.89 | $64.76 $33.95 | $73.56 $37.59 | $81.45 $39.64 | $85.89 $43.82 | $94.94

High

1 2 3 4 5

$18.26 | $39.56 $20.77 | $45.00 $23.02 | $49.88 $24.31 | $52.67 $26.88 | $58.24

$36.53 | $79.15 $41.54 | $90.00 $46.03 | $99.73 $48.62 | $105.34 $53.75 | $116.46

$54.79 | $118.71 $62.31 | $135.01 $69.05 | $149.61 $72.93 | $158.02 $80.63 | $174.70

Standard

1 2 3 4 5

$9.29 | $20.13 $10.19 | $22.08 $11.57 | $25.07 $12.48 | $27.04 $13.83 | $29.97

$18.58 | $40.26 $20.38 | $44.16 $23.11 | $50.07 $24.94 | $54.04 $27.66 | $59.93

$27.87 | $60.39 $30.56 | $66.21 $34.66 | $75.10 $37.40 | $81.03 $41.49 | $89.90

High

1 2 3 4 5

$15.97 | $34.60 $17.55 | $38.03 $19.91 | $43.14 $21.49 | $46.56 $23.84 | $51.65

$31.94 | $69.20 $35.09 | $76.03 $39.83 | $86.30 $42.98 | $93.12 $47.71 | $103.37

$47.91 | $103.81 $52.67 | $114.12 $59.73 | $129.42 $64.49 | $139.73 $71.61 | $155.16

Standard

1 2 3 4 5

$9.38 | $20.32 $10.16 | $22.01 $11.28 | $24.44 $12.50 | $27.08 $13.73 | $29.75

$18.77 | $40.67 $20.33 | $44.05 $22.55 | $48.86 $25.00 | $54.17 $27.47 | $59.52

$28.15 | $60.99 $30.49 | $66.06 $33.83 | $73.30 $37.50 | $81.25 $41.20 | $89.27

High

1 2 3 4 5

$17.31 | $37.51 $19.37 | $41.97 $21.10 | $45.72 $22.84 | $49.49 $25.55 | $55.36

$34.62 | $75.01 $38.74 | $83.94 $42.20 | $91.43 $45.67 | $98.95 $51.11 | $110.74

$51.94 | $112.54 $58.10 | $125.88 $63.31 | $137.17 $68.51 | $148.44 $76.66 | $166.10

$13.81 | $29.92 $15.49 | $33.56 $17.18 | $37.22 $18.88 | $40.91 $20.57 | $44.57

$27.62 | $59.84 $31.00 | $67.17 $34.36 | $74.45 $37.75 | $81.79 $41.13 | $89.12

$41.41 | $89.72 $46.48 | $100.71 $51.56 | $111.71 $56.63 | $122.70 $61.68 | $133.64

GEHA PPO

METLIFE PPO

UNITED CONCORDIA PPO

High

1 2 3 4 5

* Rating regions for each carrier are not the same for all plans W W W. N A R F E . O R G

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53

Open Season Report

Arizona, Arkansas, California, Colorado, DC, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Missouri, Mississippi, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, and most of Maryland • No rate increase for 2017; • No annual deductible; • Coverage for dental implants; • Fixed co-payments for each service, regardless of the charge; • No waiting period for orthodontia; • Per person annual maximum benefit, $15,000.

Triple-S Salud Service Area: Puerto Rico • Orthodontia covered with a 50 percent coinsurance after a 12-month waiting period for dependents up to age 22 ($2,000 per person lifetime maximum on covered orthodontia services); • No out-of-network benefit in areas that meet access standards.

VISION PLANS

There are four vision plans. See the chart below for premiums.

Aetna Vision • Maximum in-network annual benefit is $10,000; • Lower co-pays for in-network services, including none for lens, $20 for standard progressive lens, $40-65 per tier for premium progressive lens; • Frame allowance increased to $200; • In- and out-of-network benefits; • No deductible in the voluntary plan; • Extra discounts at participating providers on balances over the allowance for frames and conventional contacts, LASIK laser surgery, retinal imaging and second pairs of eyeglasses.

FEP BlueVision (Blue Cross Blue Shield) • Flat-rate reimbursement in areas without adequate access; • Low-vision services offered; • Discounts on laser vision correction; • Unconditional breakage warranty to repair or replace any plan frame or lens(es) for a period of one year from date of delivery; • Coverage for elective contact lenses and medically necessary contact lenses;

• High option provides an outof-network benefit based on a fee schedule; • No out-of-network benefits under Standard option.

UnitedHealthcare Vision Plan • Will pay out-of-network, limited access and international benefits based on a published fee schedule; • Low-vision services offered; • Discounts on laser vision correction; • Prosthetic eye replacement on a lifetime maximum basis; • Coverage for elective contact lenses and medically necessary contact lenses.

VSP (Vision Service Plan) • Will pay out-of-network international benefits based on a published fee schedule; • Offers a WellVision Exam designed to detect conditions such as diabetes, high blood pressure, high cholesterol, glaucoma and macular degeneration; • Guaranteed pricing on retinal screening; • Discounts on laser vision correction.

2017 PREMIUMS - NATIONWIDE VISION PLANS PLAN NAME SELF ONLY

biweekly | monthly AETNA VISION Standard $3.35 | $7.26 High $6.02| $13.04

54

KEY: Employees pay biweekly Annuitants pay monthly

SELF PLUS ONE biweekly | monthly

SELF AND FAMILY biweekly | monthly

$6.69 | $14.50 $12.04 | $26.09

$10.05 | $21.78 $18.06 | $39.13

FEP BLUEVISION Standard High

$4.00 | $8.67 $5.67 | $12.29

$8.00 | $17.33 $11.33 | $24.55

$12.00 | $26.00 $17.00 | $36.83

UNITEDHEALTHCARE VISION PLAN Standard High

$2.98 | $6.46 $4.33 | $9.38

$5.83 | $12.63 $8.44 | $18.29

$8.68 | $18.81 $12.57 | $27.24

VSP (VISION SERVICE PLAN ) Standard High

$3.57 | $7.74 $6.71 | $14.54

$7.13 | $15.45 $13.44 | $29.12

$10.71 | $23.21 $20.17 | $43.70

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Open Season Report

2017 FSAFEDS

E

ligible federal employees can enroll in FSAFEDS, the federal government’s flexible spending program, each year during the Federal Benefits Open Season. Under the program, employees contribute money from their salary into an FSAFEDS account before taxes are withheld and use it to get reimbursed for out-of-pocket health care and dependent care expenses.

The federal government offers three types of FSAFED accounts: • Health Care Flexible Spending Account, used to pay for qualified medical costs and health care expenses that are not paid by an employee’s Federal Employees Health Benefits Program (FEHBP)

plan or any other insurance.

• Limited Expense Health Care Flexible Spending Account, only available to employees who enroll in an FEHBP High Deductible Health Plan with a Health Savings Account, and limited to dental and vision care services/ products.

• Dependent Care (Day Care) Flexible Spending Account, used to pay for eligible dependent care expenses such as child care.

Open Season FSAFEDS enrollments are effective January 1, 2017. Current enrollees must enroll each year to continue participating in FSAFEDS. Federal retirees are not eligible for FSAFEDS.

For participants enrolled in a health care or limited expense health care account in or after 2016: • The minimum election for all accounts is $100.

• The ability to carry over funds has been adopted for health care and limited expense health care FSAs. If employees are enrolled in one of these FSAs, they will be able to bring up to $500 of unspent funds from 2016 into 2017.

These funds can be used to reimburse eligible expenses incurred in 2017. Employees must re-enroll for the 2017 benefit period to be eligible for the carry-over. (This carry-over ability does not affect dependent care FSAs.)

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Managing Money

TSP VS. IRA: SOMETIMES IT MAKES SENSE TO GO

T

he Thrift Savings Plan (TSP) has been on a big campaign recently to encourage participants to keep their money in the TSP when they leave

the federal workforce. The TSP’s strongest argument for staying put is the low-cost investment options within the TSP. And it’s a good argument, as the TSP funds are some of the least expensive available.

Fund expenses, however, shouldn’t be the only factor considered. There are several circumstances and reasons that may favor moving your TSP account to an IRA. While some reasons may be due to personal preference, such as the desire to have more investment choices or the flexibility to withdraw money how and when you want to, there are other instances when staying could result in costs that exceed the benefit provided by TSP’s low investment fees.

For example, a few such instances include: Tax strategies. Charitably inclined individuals over age 70 ½, can transfer money from their IRA accounts to a charitable entity and exclude the withdrawal from income while satisfying their required minimum distributions (RMDs).

Unfortunately, Qualified Charitable Donations (QCDs) are only allowed to be made from IRA accounts.

Participants with a Roth TSP balance. There are a

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couple of issues here. First, although Roth IRAs aren’t subject to RMDs during the owner’s lifetime, TSP participants must take RMDs from a Roth TSP balance. Second, if a participant has both a traditional and Roth TSP balance, he or she cannot choose from which balance to take withdrawals. All withdrawals are taken proportionately from both the traditional and Roth TSP balances.

A surviving spouse with a TSP Beneficiary Participant Account. The annual RMD a surviving spouse must take from a TSP Beneficiary Participant Account is much larger than it would be if the money was transferred to an IRA account of his or her own.

RMDs for participants with a spouse who is more than 10 years younger. Although the IRS allows the more favorable Joint Life and Last Survivor table to be used in this situation, the TSP doesn’t.

If you are in any of these situations, you may find it benefi-

BY MARK A. KEEN

CFP®

cial to move your TSP account to an IRA. Not only will you have almost unlimited investment choices and the freedom to take withdrawals on your own terms, you’ll also have the option to invest in vehicles that track the same underlying investments as the TSP funds (with the exception of the G Fund, which is a special fund available only to TSP participants).

If moving to an IRA makes sense for you, you also may find it comforting to know the big index fund providers are in a pricing war that’s cutting into the TSP’s low-cost advantage.

In fact, BlackRock recently launched the latest offensive, dropping the fees on many of its core exchange-traded funds (ETFs). For example, BlackRock reduced the expense on its iShares Core S&P 500 ETF to 0.04 percent from 0.07 percent and the expense on its iShares Core U.S. Aggregate Bond ETF to 0.05 percent from 0.08 percent.

To be fair, these expenses are still higher than the expenses on the TSP investments, which, according to data found on the TSP website, currently run 0.029 percent. So, although the gap is narrowing, the TSP funds still have a price advantage.

It’s important to understand that the Federal Retirement Thrift Investment Board

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

(FRTIB), which administers the TSP, has no control over the Internal Revenue Code (IRC), which governs the rules pertaining to the Roth TSP RMDs, TSP Beneficiary Participant Account RMDs and QCDs. It does, however, have control over investment options and withdrawal rules (including the rule that all withdrawals come out proportionately from the TSP traditional and TSP Roth balances). And to its credit,

the FRTIB outlines an initiative in its 20172022 Strategic Plan to address these shortcomings.

Even if the FRTIB successfully addresses the shortcomings it can control, IRC rules still will present situations in which TSP participants will be better served in an IRA. Additionally, there still will be circumstances when the FRTIB chooses to be more restrictive than the IRC allows for, such as the use of the Joint Life table, that may warrant moving money to an IRA. TSP participants need to be aware of such circumstances in order to maximize the value of tax-advantaged accounts.

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

New! Webinars for Year-End Planning

You are just a click away from expert guidance on the confusing issues surrounding federal benefits and retirement. Access these online resources, exclusively for NARFE members.

FREE for NARFE Members in the NARFE Federal Benefits Institute ter Regis !

Now

Upcoming Webinar!

How Much Money Do You Need to Retire?

December 8, 2 p.m. ET

Presented by Mark A. Keen, CFP and narfe magazine columnist • • • •

Reduce risk – eliminate concerns Tips to help estimate your retirement budget Investment strategies to avoid tax pitfalls And more!

NARFE Federal Benefits Institute

On Demand! Watch Now!

The Alphabet Soup of Health Plans Understand the Options and Save!

FEHBP And Medicare What You NEED to Know

Presented by Tammy Flanagan, federal benefits expert and narfe magazine contributor

Not a member? Join NARFE today to

access all NARFE Federal Benefits Institute resources and events: www.narfe.org/join.

www.NARFE.org/Institute

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

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59

The Informed Citizen

CARRIER ALERT: ON THE JOB, ON THE LOOKOUT

C

arrier Alert, a partnership between the National Association of Letter Carriers (NALC) and the U.S. Postal Service, is a free service NARFE members should learn about and take advantage of where available.

Background Carrier Alert, according to the NALC website, “is a cooperative community service program to monitor the well-being of elderly and disabled mail patrons. As one of the few — and some days only — point of human contact for home-bound patrons, letter carriers are particularly attuned to signs that could mean an accident or illness. Carrier Alert, begun in 1982, is a system to tap into that sensitivity.”

Who’s Involved While Carrier Alert is a joint program of NALC and the Postal Service, its foundation is built on the local service organization, which might be the local United Way, Red Cross or Agency on Aging. The agency handles promotion, registration, administration, establishing local procedures and funding.

Dramatic Success Story The program has had some dramatic successes. Here is one: Noticing smoke coming from a home on her Detroit route, Evangeline Johnson went to the back yard to investigate. Johnson discovered the back of the house was engulfed in flames.

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Johnson warned the sleeping mother, who grabbed her child and escaped unharmed. Johnson was nominated by Detroit, MI, Branch 1, and selected by a three-judge panel for one of eight NALC Hero of the Year Awards in the Carrier Alert category. (See photo, below.)

Carrier Alert’s Five Steps If you, or someone you know, could benefit from this program, here is how it works.

1. Interested postal patrons register to participate in the program. Your local postmaster can give you more details on registration.

BY CHRISTOPHER FARRELL SENIOR ANALYST

2. Your letter carrier will be authorized to place a Carrier Alert symbol in your mailbox which will alert all letter carriers to watch your mail for any signs of distress such as an unusual accumulation.

3. If your letter carrier finds an accumulation of mail, and you have not covered the sticker to signal that you will be away for a few days, he or she will notify the agency where you are registered or report your name to the postal supervisor, who will report it to the agency.

4. The social service agency will then try to contact you by phone. If you cannot be reached, the agency personnel will try to contact a friend or relative whom you have listed as a contact in the event of an emergency.

5. If a friend or a relative cannot be reached, the social service agency will send a worker to your home to check on your health and well-being.

For more information about Carrier Alert, go to www.nalc. org/community-service/carrier alert.

2017 State Legislative Session Information

NALC President Fredric V. Rolando presents Hero of the Year Award to Evangeline Johnson.

2017 state legislative sessions: www.multistate.com State legislative maps: www.OpenStates.org State legislative elections: www.ballotpedia.org

Urgent: Special 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 in fall and winter can expose you to the most dangerous glare…do you know how to protect yourself?

I

n the fall and winter, the sun is lower in the sky so it rises and sets at peak travel periods. During the early morning and afternoon rush hours 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 or snowy and icy pavement. 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 technology to help protect human eyesight

Eagle Eyes® Lens

simulation

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. These scientifically designed sunglasses are not just fashion accessories for the summer; they are necessary to protect your eyes from those harmful rays produced by the sun in the winter.

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 triple-filter 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 science-based protection.

The finest optics: And buy one, get one FREE! Eagle Eyes® has the highest customer satisfaction of any item in our 20 year history. We are so excited for you to try the Eagle Eyes® breakthrough technology that we will give you a second pair of Eagle Eyes® Navigator™ Sunglasses FREE––a $99 value!

That’s two pairs to protect your eyes with the best technology available for less than the price of one pair of traditional sunglasses. You get a pair of Navigators with stainless steel black frames and the other with stainless steel gold, plus one hard zipper case and one micro-fiber drawstring cleaning pouch are included. Keep one pair in your pocket and one in your car.

Your satisfaction is 100% guaranteed. If you are not astounded with the Eagle Eyes® technology, enjoying clearer, sharper and more glare-free vision, simply return one pair within 60 days for a full refund of the purchase price.

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designers, entrust them to the best scientific minds on earth. Wear your Eagle Eyes® Navigators with absolute confidence, knowing your eyes are protected with technology that was born in space for the human race.

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Alzheimer’s Update

NARFE AWARDS GRANTS TOTALLING $470,633

E

ach year, the NARFE-Alzheimer’s National Committee decides which research projects will be awarded grants from the NARFE-Alzheimer’s Research Fund. In fiscal

year 2016, NARFE members donated $470,633 to the Fund. At its meeting in August, the Committee awarded four grants that totaled $470,633. NARFE has awarded a total of 71 research grants since the program began in 1985. This year’s grants go to: • Gary Landreth, Ph.D., Case Western Reserve University (Cleveland, OH), $240,000 over three years, “Roles of TREM2 in Alzheimer’s Disease Pathogenesis.” During Alzheimer’s disease, there is inflammation in the brain. Certain variations in a gene called “triggering receptor expressed on myeloid cells 2” (TREM2) increase the risk of Alzheimer’s. However, recent studies have shown that mice genetically engineered with a shortage of TREM2 have less inflammation and fewer amyloid plaques, which are characteristic features of Alzheimer’s. Landreth and associates plan to study the role of TREM2 in brain inflammation and Alzheimer’s. These findings can help researchers identify potential targets for the development of treatments for preventing or treating Alzheimer’s.

• Badri N. Vardarajan, Ph.D., Columbia University Medical Center (New York, NY), $99,056 for two years, “Sequencing in Healthy APOE-e4 Samples to Identify Protective Variants in Alzheimer’s Disease.” Everyone

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carries two copies of the APOE gene, which makes apolipoprotein E (ApoE), a naturally occurring protein in the brain. One version of the APOE gene, APOE epsilon 4 (APOE-e4), is known to be a risk factor for Alzheimer’s.

Individuals may get one or two copies of APOE-e4. Some with two copies do not get the disease, or do so at a much later age than others with two copies. This suggests there may be other genetic factors that modify or reduce the risk of Alzheimer’s in people with the APOE-e4 variation. Vardarajan and colleagues will study the genetic sequences of people who carry two copies of the APOEe4 gene but who do not have Alzheimer’s to identify versions of other genes that may protect carriers from the risk associated with APOE-e4. This may lead to drugs that mimic the protective genes, possibly leading to ways to prevent or delay Alzheimer’s.

• Fei Liu, Ph.D., Research Foundation for Mental Hygiene, Inc. at NYS Institute for Basic Research (Menands, NY), $250,000 over three years.

BY MERV STUCKEY NARFE-ALZHEIMER’S CHAIR

(Total awarded by NARFE is $91,577.) “Dyrk1A in Early Onset of Alzheimer’s Pathology in Down Syndrome.” People with Down syndrome are born with an extra copy of chromosome 21.

They have a high risk of developing Alzheimer’s, sometimes in their 30s and 40s. One of the chromosome 21 genes codes for a protein called dual-specificity tyrosine phosphorylation-regulated kinase 1A (Dyrk1A). When Dyrk1A levels are high, as in people with Down syndrome, protein processing and activity may be abnormally altered. Liu’s team will examine how Dyrk1A affects the production and processing of beta-amyloid and tau proteins. This could identify targets for the development of drugs to prevent or slow the process of Alzheimer’s disease.

• Women and Alzheimer’s Research Initiative (WARI) SAGA Grant Program, $2,250,000.

(NARFE awarded $40,000.) A woman’s estimated lifetime risk of developing Alzheimer’s at age 65 is 1 in 6 (for men, it is 1 in 11).

WARI’s new Sex and Gender in Alzheimer’s (SAGA) program awarded nine grants to scientists studying how sex and gender contribute to Alzheimer’s and other dementias.

MERV STUCKEY IS CHAIR OF THE NARFEALZHEIMER’S NATIONAL COMMITTEE. EMAIL: NARFEROADRUNNER@COMCAST.NET. THIS COLUMN APPEARS QUARTERLY.

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.

National Active and Retired Federal Employees Association 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.

Who Should Join? If your future security is tied to federal retirement benefits – federal retirees, current employees, spouses and individual survivors – you should join NARFE. Three Easy Ways To Join 1. Complete this application and return by mail with your payment.

2. Join online at www.narfe.org.

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

• 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-, moneyand hassle-saving benefits available only to NARFE members.

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.

NARFE MEMBERSHIP APPLIC ATION

1Q6

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

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

q Mr. q Mrs. q Miss q Ms. Full Name _________________________________________________

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q Please enroll my spouse

City _______________________ State _____ ZIP __________________ Phone (__________) _________________________________________ Email _____________________________________________________

MAY WE THANK SOMEONE? If applicable, please provide the name, membership and chapter number of the member who introduced you to NARFE:

_________________________________________ Spouse’s Full Name

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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.

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

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PAYMENT OPTIONS q Check, Money Order or Bill Pay (Payable to NARFE)

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

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

2016

G FUND

F FUND

C FUND

S FUND

I FUND

OCTOBER

0.14%

-0.74%

-1.82%

-3.86%

-2.03%

SEPTEMBER

0.13%

-0.04%

0.02%

0.90%

1.24%

AUGUST

0.13%

-0.11%

0.14%

0.80%

0.08%

YTD

1.46%

5.22%

5.91%

5.86%

0.71%

1 YEAR

1.82%

4.66%

4.56%

3.50%

-2.18%

3 YEAR*

2.06%

3.94%

8.91%

5.34%

-0.99%

5 YEAR*

1.89%

3.26%

13.64%

12.57%

5.61%

10 YEAR*

2.68%

4.88%

6.76%

7.50%

1.49%

L INCOME

L 2020

L 2030

L 2040

L 2050

*ANNUALIZED

2016

OCTOBER

-0.38%

-0.91%

-1.39%

-1.66%

-1.89%

SEPTEMBER

0.20%

0.30%

0.38%

0.43%

0.48%

AUGUST

0.13%

0.16%

0.18%

0.20%

0.21%

YTD

2.43%

3.21%

3.77%

4.03%

4.20%

1 YEAR

2.32%

2.43%

2.60%

2.61%

2.51%

3 YEAR*

3.08%

4.05%

4.56%

4.85%

4.99%

5 YEAR*

3.99%

7.03%

8.36%

9.28%

10.06%

10 YEAR*

3.76%

4.70%

5.15%

5.37%

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

Interest rates trended higher in October as the U.S. economy showed some strength and expectations rose for a Federal Reserve rate hike before year-end. The F Fund lost ground because of the higher interest rates. Major U.S. stock indices declined, leading to negative results for the C and S Funds. The I Fund had a loss, entirely attributable to the strength of the U.S. dollar. The L Funds had modestly negative returns.

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

2017 COLA: 0.3%

R

etirees under the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) will receive a 0.3 percent increase in their annuities in 2017.

The cost-of-living adjustment (COLA) was determined by comparing the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of 2016 (July, August, September), 235.057, with the 2014 third-quarter average of 234.242. (See also, story on p. 6.)

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. September’s index is 2.04 percent higher than the December 2015 base index of 230.791.

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

2015

2016

For the Record

AS INTEREST RATES ROSE, MOST FUNDS DECLINED IN OCTOBER

THRIFT SAVINGS PLAN FUND RETURNS

Claims Received

OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER

8,374 6,019 4,753 15,423 11,293 5,741 7,241 7,210 5,929 9,238 6,818 6,946

Inventory

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

12,642 12,562 11,399 19,761 22,692 19,211 14,517 14,035 13,529 15,562 16,334 15,146

74% 76% 78% 79% 80% 82% 80% 80% 79% 79% 78% 77%

86 98 104 94 96 118 92 103 115 110 112 100

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 64

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CPI-W

Monthly % Change

% Change from 234.242

OCTOBER 2015

232.373

-0.12

-0.80

NOVEMBER

231.721

-0.28

-1.08

DECEMBER

230.791

-0.40

-1.47

JANUARY 2016

231.061

+0.12

-1.36

FEBRUARY

230.972

-0.04

-1.40

MARCH

232.209

+0.54

-0.87

APRIL

233.438

+0.53

-0.34

MAY

234.444

+0.43

+0.09

JUNE

235.308

+0.37

+0.46

JULY

234.771(R)

-0.23(R)

+0.23

AUGUST

234.904(R)

+0.06(R)

+0.28

235.495

+0.25

+0.3

SEPTEMBER (R)= Revised

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:

MasterCard VISA NARFE MEMBERS CONTRIBUTED FOR If you have any questions, write to:

Discover AMEX ALZHEIMER’S RESEARCH: $12 Million Fund NATIONAL COMMITTEE CHAIR Card Number: Merv Stuckey, 2272 E. Buster Mountain Dr. Expiration Date: (mm)/ (yy) Oro Valley, AZ 85755-4709 *Total as of September 30, 2016 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) EMAIL: narferoadrunner@comcast.net

$11,958,152* Alzheimer’s research.

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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

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

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

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

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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 3333 S. Wadsworth Blvd., Suite 300 Lakewood, CO 80227

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

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

NARFE-FEEA Disaster Fund

Amount: $

NARFE-FEEA Scholarship Fund

Amount: $

Name: Address: City: State: ZIP:

NARFE News

DISASTER RELIEF

NARFE SCHOLARS

N

ARFE is proud to announce the 2016 NARFE Scholarship winners and their NARFE sponsors. The list appears on pp. 6768. Each student received a certificate and a $1,000 check for the 2016-2017 school year. Winners are listed by their sponsor’s region of residence.

NARFE extends special thanks to the members from NARFE’s 10 regions who served on the judging

teams and to the staff of the Federal Employee Education & Assistance Fund, which administers this program for NARFE. In the photo, Jacob Wykes of Jacksboro, TX, grandson of NARFE member Lynna Pruitt, poses with his NARFE Scholarship check and gives the Horned Frog hand sign of Texas Christian University, where he is a freshman.

Give the GIFT of NARFE Membership

In the wake of the damage caused

by Hurricane Matthew in several states, NARFE reminds members that the following help is available after a declared natural disaster: • Cash grants from the NARFEFEEA Disaster Fund. Up to $500 is available to NARFE members.

Download an application from the NARFE website, send an email to fedshelpingfeds@feea.org or call 800-338-0755.

• No-interest loans and/or disaster grants from the Federal Employee Education & Assistance Fund (FEEA) (active federal employees only). Download an application at feea.org/disaster.

Please give now. NARFE asks members to consider making a tax-deductible donation to the NARFE-FEEA Disaster Fund. See the coupon on p. 65 in this issue.

Share NARFE this Holiday Season!

What does a Gift Membership include?

ALL the benefits of NARFE!

q Please start a 1-year gift membership for the recipient listed. Dues are $40.

FROM: Sponsor Name. _________________________________________

PAYMENT OPTIONS

Membership ID No. _____________________________________

q Check, Money Order or Bill Pay (Payable to NARFE) q Charge my: q MasterCard q VISA q Discover q AMEX

TO: Recipient Name ________________________________________ Address _______________________________________________

Card No. ________________________________________

Apt./Unit ______________________________________________

Expiration Date _____ /_________ mm yyyy

City ____________________________ State ___ ZIP __________

Name on Card ____________________________________

Phone ( ______) ________________________________________ Email _________________________________________________ q Active Federal Employee q Active Federal Employee Spouse q Annuitant q Annuitant Spouse q Survivor Annuitant Would you like to include a local Chapter?

Chapter # ____________________________

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Signature ________________________________________ Date _________________ MAIL THIS APPLICATION TO: NARFE / Recruitment and Retention 606 N. Washington St. / Alexandria, VA 22314-1914

2016 NARFE SCHOLARSHIP WINNERS REGION I

Joseph Ferguson Little Silver, NJ Rutgers University Grandson of Ronald Duquette, Ch. 221 - MA Erin Grela Weston, MA Massachusetts Institute of Technology Granddaughter of Leo Glasheen, Ch. 1694 - NH Matthew Libcracki Saugus, MA Worcester Polytechnic Institute Grandson of Patricia Tirrell, Ch. 479 - MA Zachary Mercugliano Durham, CT Franciscan University of Steubenville Grandson of Vincent Mercugliano, Ch. 257 - CT Aster O’Leary S. Burlington, VT Rice University Daughter of Deanna O’Leary, Ch. 208 - VT Colleen Senglaub Queensbury, NY St. John Fisher College Granddaughter of Jean Senglaub, Ch. 1355 - NY

REGION II

Karina Atanacio Middletown, DE West Virginia University Institute of Technology Daughter of Reynaldo Atanacio - DE Courtney Broadnax Silver Spring, MD Indiana University Bloomington Daughter of Carole Broadnax, Ch. 1888 - MD Andrew Brown Rockville, MD University of Maryland College Park Grandson of Richard Meyer, Ch. 1888 - MD TaeVaughn Buie Edgewood, MD Widener University Grandson of Emery Thompson, Sr., Ch. 1770 - MD

Caitlyn Koch Sheboygan, WI University of Wisconsin Madison Daughter of Gordon Koch, Ch. 710 - WI

Sarah Hughes Falkville, AL University of Alabama Birmingham Granddaughter of Ray Crumpler, Ch. 1368 - AR

Brandon Ray Rockford, MI University of Michigan Son of Ethan Ray, Ch. 234 - MI

Gabrielle Simon Kenner, LA Louisiana State University Granddaughter of Ronald Kihnel, Ch. 41 - LA

Patrick Bell Starkville, MS Mississippi State University Grandson of Douglas Blount, Ch. 1388 - MS

Lauren Sperry Alexis, IL Monmouth College Granddaughter of Mary Joan Sperry, Ch. 338 - IL

Kevin Stout Houston, TX Baylor University Son of Chris Stout - TX

Bobbye Jackson Bay Minette, AL Mississippi State University Granddaughter of Imogene Graham, Ch. 250 - AL

REGION V

Valerie Calhoun Harrison City, PA Pennsylvania State University Daughter of Greg Calhoun, Ch. 1855 - PA Nathan Pittenger Carlisle, PA University of Pennsylvania Grandson of Alverna Jones, Ch. 373 - PA

REGION III

Emily Miller Tampa, FL University of North Florida Daughter of Richard Miller, Ch. 109 - FL James Nelson Dothan, AL Auburn University Grandson of Richard Acker, Ch. 443 - AL Jessica Pavlov Panama City Beach, FL Florida State University Granddaughter of Anna Krohn, Ch. 86 - FL William White Hilton Head Island, SC Duke University Grandson of Joan Socci, Ch. 2258 - SC

REGION IV

Jessie Ferree Jonesboro, IN Indiana Wesleyan University Granddaughter of Duane Apple, Ch. 503 - IN Mitchell Hoffman Lima, OH Ohio State University Grandson of Mary Bryan, Ch. 317 - OH Jaye Johnson Wyoming, OH The New School: Parsons & Eugene Lang Colleges Granddaughter of Wardell Gunn - OH

Megan Dedecker Altoona, IA University of Iowa Granddaughter of Gerald Dedecker, Ch. 148 - IA Devin DiJoseph Shawnee, KS University of Kansas Granddaughter of Mary Haswell, Ch. 1162 - KS Lauren Kattner Huron, SD South Dakota State University Granddaughter of James Valer, Ch. 899 - SD Tana Pearson Meriden, KS Kansas State University Daughter of Teresa Pearson, Ch. 2 - KS Stefan Petrovic Lawrence, KS Harvard University Son of Zina Petrovic - KS Madelyn Smith Stacy, MN Colorado School of Mines Granddaughter of Dorothy Nielsen, Ch. 2220 - SD

REGION VI

Wendy Carey Amarillo, TX Texas Tech University Daughter of Leon Carey - TX Taylor Hemby Round Rock, TX University of North Texas Denton Daughter of Simon Hemby, Jr. - TX

Jacob Wykes Jacksboro, TX Texas Christian University Grandson of Lynna Pruitt TX

REGION VII

Maggie Althaus Philipsburg, MT Carroll College Granddaughter of James Connor, Ch. 1037 - WY Donna Morrison Eagar, AZ Arizona State University Daughter of James Morrison, Jr., Ch. 1235 - AZ Madeline Pearce Loami, IL Bradley University Granddaughter of Mary Wilson, Ch. 1085 - CO Leah Romero Las Cruces, NM New Mexico State University Daughter of Patrick Romero, Ch. 182 - NM Ellie Rone Casper, WY University of Wyoming Granddaughter of June Jewett, Ch. 358 - WY Alexander Sperber Sandy, UT University of Utah Grandson of Stevan Gerber, Ch. 155 - UT

REGION VIII

Kyle Burt Henderson, NV University of Minnesota Grandson of James Patton, Ch. 2275 - NV

(Continued on p. 68) W W W. N A R F E . O R G

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67

NARFE News

2016 NARFE SCHOLARSHIP WINNERS (Continued from p. 67)

Dominic Navarro Rocklin, CA University of California Los Angeles Grandson of Marie O’Hanlon, Ch. 53 - CA Kayla Nicholls Redondo Beach, CA Bennington College Granddaughter of Jeanne Nicholls, Ch. 190 - CA Nicholas Petitmermet Cambridge, ID Boise State University Grandson of Eddie Spohr, Ch. 1016 - CA Gabriella Rodriguez Davie, FL University of Miami Granddaughter of Richard Palmer, Ch. 1266 - NV Gavin Wong Greenbrae, CA Cornell University

Son of Denise Zvanovec, Ch. 400 - CA

REGION IX

MacIntyre Frederick Spokane, WA University of Washington Son of Michelle Eames - WA Meagan Hathaway Portland, OR George Fox University Granddaughter of Arthur Hathaway, Ch. 32 - WA Sean Henson Portland, OR Harvard University Son of Colleen Henson, Ch. 29 - OR Noah Jacobson Portland, OR Grinnell College Grandson of Donald Morris, Ch. 261 - OR

Austen Kaul McGregor, TX Texas A&M University Grandson of Ken Kaul, Ch. 32 - WA

Josiah Cork Salem, WV West Virginia University Son of Timothy Cork, Ch. 1579 - WV

Ryan Miller Roberts, MT Montana State University Grandson of Bonnie Miller MT

Sarah Korkes Cary, NC North Carolina State University Granddaughter of Leonard Englehart III, Ch. 2289 - NC

REGION X

Julia Palacios Thompsons Station, TN East Tennessee State University Daughter of Ernest Palacios TN

Jacob Brady White Plains, NY Swarthmore College Grandson of Malvina Brady - NC

Jessica Sarsony Apex, NC University of North Carolina Wilmington Daughter of Chris Sarsony, Ch. 192 - NC

Kareem Abdol-Hamid Yorktown, VA Virginia Tech University Son of Khaled Abdol-Hamid VA

narfe Statement of Ownership, Management and Circulation 1. Publication Title: narfe 2. Publication Number: 4632-60 3. Filing Date: Sept. 27, 2016 4. Issue Frequency: Monthly 5. Number of Issues Published Annually: 12 6. Annual Subscription Price: $45 7. Address of Known Office of Publication: National Active and Retired Federal Employees Association, 606 N. Washington Street, Alexandria, VA 22314-1914 8. General Business Office of the Publisher: National Active and Retired Federal Employees Association, 606 N. Washington Street, Alexandria, VA 22314-1914 9. Names and Addresses of Publisher, Editor, and Managing Editor: Publisher: National Active and Retired Federal Employees Association, 606 N. Washington Street, Alexandria, VA 22314-1914 Editor: Margaret M. Carter, 606 N. Washington Street, Alexandria, VA 22314-1914 Managing Editor: Not Applicable 10. Owner: National Active and Retired Federal Employees Association, 606 N. Washington Street, Alexandria, VA 22314-1914 11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages or Other Securities: None 12. Tax Status: Has Not Changed During Preceding 12 Months 13. Publication Title: narfe 14. Issue Date for Circulation Data Below: October 2016 15. Extent and Nature of Circulation:

Average No. Copies Each Issue During Preceding 12 Months

No. Copies of Single Issue Published Nearest to Filing Date

A. Total Number of Copies (Net Press Run) 223,701 218,504 B. Paid Circulation 1. Mailed Outside-County Paid Subscriptions Stated on PS Form 3541 215,758 210,259 2. Mailed In-County Paid Subscriptions Stated on PS Form 3541 3. Paid Distribution Outside the Mails including Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid Distribution Ouside USPS 351 265 4. Paid Distribution by Other Classes of Mail Through the USPS 300 300 C. Total Paid Distribution 216,409 210,824 D. Free or Nominal Rate Distribution 1. Free or Nominal Rate Outside-County Copies included on PS Form 35410 1,477 1,476 2. Free or Nominal Rate In-County Copies included on PS Form 3541 3. Free or Nominal Rate Copies Mailed at Other Classes Through the USPS 5,315 5,704 4. Free or Nominal Rate Distribution Outside the Mail E. Total Free or Nominal Rate Distribution 6,792 7,180 F. Total Distribution 223,201 218,004 G. Copies Not Distributed 500 500 H. TOTAL

223,701 218,504 I. Percent Paid and/or Requested Circulation 97 96.7 16. Publication of Statement of Ownership: December 2016 17. I certify that all information furnished on this form is true and complete.

Margaret M. Carter, Editor/Sept. 27, 2016

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NARFE’s Dues Withholding Program What is dues withholding?

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

How does it work?

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

Advantages • Save 15% off your annual membership dues!

• Sign up your spouse and double your savings!

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

• Your monthly payment is affordable and convenient!

• You may cancel your dues withholding at any time!

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

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

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

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

Social Security Number (9-digit number)

–

Civil Service Annuity Number

–

C S

–

–

–

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

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

NARFE MEMBERSHIP INFORMATION

Street Address ___________________________________

NARFE Membership ID ____________________________________

Apt./Unit________________________________________

NARFE Chapter Number____________________________________

City _________________________ State _____ ZIP _____

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

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

mm

yyyy

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

If YES, enter spouse’s information below.

Spouse’s Name ___________________________________________ Spouse’s Membership ID ___________________________________

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

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

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

Signature of Annuitant or Survivor-Annuitant

Date

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

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

DW-2 (08/12)

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.

FINANCE AND LEGAL

IDShield & LegalShield 571-830-5489 www.legalshield.com/info/narfe LegalShield offers legal service plans as well as identity theft protection plans to NARFE members at discounted monthly rates. For more information on rates and to sign up today, visit the website above.

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

NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.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 long-term care.

As the official provider of NARFE merchandise, the NARFE General Store offers NARFE-approved name badges, business cards, clothing, accessories, cups and mugs, plaques and clocks, and much, much more. Check out our online catalog for our customizable product line.

MOVING SERVICES

InFirst Federal Credit Union 800-328-1500 www.infirstfcu.org

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.

INSURANCE

Wheaton World Wide Moving 800-248-7960 narfe@wvlcorp.com

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 70

Bekins Van Lines 800-248-4810 narfe@bekins.com

As a member of NARFE, you have the privilege of joining InFirst Federal Credit Union, which has been serving active and retired federal employees since 1935. The credit union offers extensive services at competitive rates to members nationwide at 5,000+ shared branches, 55,000 surcharge-free ATMs and 24/7 phone access. Accounts are insured by NCUA up to $250,000.

GEICO 800-368-2734 www.geico.com/fed/narfe

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NARFE MERCHANDISE

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

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

TELECOMMUNICATIONS

Sprint 877-746-8249 www.sprint.com/fed NARFE members receive a 15% discount with Sprint! Access www.sprint. com/fed, call 877-746-8249 or visit the Sprint store nearest you to take ad-

vantage of this offer. Please bring your member ID card with you to our stores to sign up for the discount, and provide code GNARF_ZMB.

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.

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. The FiOS 100% fiberoptic network delivers award-winning broadband and entertainment to your home. Only FiOS Internet customers get upload speeds as fast as their download speeds. With FiOS TV, 625+ channels are available, including 185+ in HD, and over 130,000 On Demand titles, thousands free. This exclusive online-only savings is only available to new Verizon customers or those upgrading to the Triple Play Package.

TRAVEL

Wyndham Hotel Group 877-670-7088 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, Ascend Collection, Cambria, MainStay Suites, Suburban, EconoLodge, Clarion, Quality and Rodeway Inn.

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 800-633-3469 www.budget.com Budget Car rental was founded in 1958 for the “budget-minded” renter. Today,

5282909. For complete terms and conditions, visit www.narfe.org/ memberperks.

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 Worldwide®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®. Advance reservations required through phone number above; cannot be redeemed at individual hotels.

WELLNESS

Beltone Hearing Care 888-418-6763

Local Hospitality www.narfe.org/travel NARFE is pleased to offer its members an exclusive travel discount service.

Savings may exceed 50% and average 10-20% below market on all hotels and car rental suppliers around the world.

Any hotel, any car, anywhere, anytime!

Beltone has been helping the world hear better for 75 years. NARFE members receive 25% off, and those with Blue Cross Blue Shield Service Benefit Plan insurance coverage may be eligible for two Beltone True 3™ hearing aids for ZERO out-of-pocket.

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

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.

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.

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

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The Way We Worked

WADING IN WHEN DISASTER STRIKES In April and May 1997, the Red River in North Dakota and Minnesota experienced historic flooding. Floodwaters reached more than three miles inland, damaging several communities, including Fargo and Grand Forks, ND. Damages for the region totaled $3.5 billion. Because of the severity of the damage, the Federal Emergency Management Agency (FEMA) was called in to assist.

FEMA was created in 1978 to coordinate the response to disasters in the United States that overwhelm local and state resources. State governors must first declare a state of emergency and formally ask the president for FEMA to respond.

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

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DID YOU KNOW? In 2003, the Federal Emergency Management Agency (FEMA) was one of the 23 federal agencies, programs and offices that became the Department of Homeland Security. According to its website, www.fema.gov, FEMA “coordinates the federal government’s role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.”

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IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. Plans and Services require purchase of a Jitterbug phone and a one-time setup fee of $35. Monthly fees do not include government taxes or assessment surcharges and are subject to change. Coverage is not available everywhere. 5Star or 9-1-1 calls can only be made when cellular service is available. 1We 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 GreatCall 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 Operator. Jitterbug and GreatCall are registered trademarks of GreatCall, Inc. ©2016 GreatCall, Inc. ©2016 firstSTREET for Boomers and Beyond, Inc.

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