April 2023 NARFE Magazine

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

April 2023 VOLUME 99 ★ NUMBER 3

Retirement Readiness Issue

P. 24

P. 32

P. 38

Maximizing Social Security

Digging Into Your Service Record

State Tax Treatment of Federal Annuities

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Contents APRIL 2023

Retirement Readiness Issue COVER STORY PAGE 24

FEATURE PAGE 32

FEATURE PAGE 38

MAXIMIZING SOCIAL SECURITY NARFE’s Tammy Flanagan shares what to consider before claiming your benefit

DIGGING INTO YOUR SERVICE RECORD NARFE has tips for checking your personnel files to ensure you receive all the retirement benefits you’re owed STATE TAX TREATMENT OF FEDERAL ANNUITIES Learn if there have been changes to the way your state treats your federal annuity or retirement income as you file for 2022

Washington Watch

Columns

8 WEP and GPO Repeal

4 From the President

Legislation Reintroduced

9 House Passes Federal Hiring Reform Bill

9 US Hits Federal Debt Limit,

Implements ‘Extraordinary Measures’

10 NARFE Members

Prepare to Engage With Lawmakers During the April Congressional Recess

12 New Leaders Head

Committees of Importance to NARFE

14 Bill Tracker

22 Benefits Brief

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

April 2023 VOLUME 99 ★ NUMBER 3

Retirement Readiness Issue

P. 24

P. 32

P. 38

Maximizing Social Security

Digging Into Your Service Record

State Tax Treatment of Federal Annuities

46 Managing Money Departments

6 NARFE Online 18 Questions & Answers

ON THE COVER Illustration by TGD

19 Countdown to COLA 48 NARFE News 50 NARFE Perks 52 The Way We Worked

Connect with us!

Visit us online at www.narfe.org Like us on Facebook NARFE National Headquarters Follow us on Twitter @narfehq

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NARFE MAGAZINE www.NARFE.org

1

APRIL 2023 VOLUME 99 ★ NUMBER 3

REGIONAL VICE PRESIDENTS

EDITORIAL DIRECTOR Jenn Rafael

REGION I Jeff Anliker

CREATIVE SERVICES MANAGER Beth Bedard ADDITIONAL GRAPHIC DESIGN TGD EDITORIAL BOARD William Shackelford, Kathryn E. Hensley, Johann De Castro

NATIONAL OFFICERS

CONTACT US NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Editorial: communications@narfe.org Advertising Sales: Francine Garner advertising@narfe.org

KATHRYN E. HENSLEY Secretary/Treasurer; natsectreas@narfe.org

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 NFBNEWSLINE® service at 866-504-7300 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.

WILLIAM SHACKELFORD President; natpres@narfe.org

INTERIM CHIEF OF STAFF JOHANN DE CASTRO jdecastro@narfe.org

(Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 413-813-8136 Email: jeff.anliker@outlook.com

REGION II Larry Walton (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 443-831-1791 Email: rvp2@narfe.org

REGION III Lynn Harper (Alabama, Florida, Georgia, Mississippi, South Carolina and Puerto Rico) Tel: 478-951-3260 Email: lynn_harper@msn.com

REGION IV Robert L. Helfrich (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 317-501-1700 Email: rlhelfrich@yahoo.com

REGION V Cindy Reneé Blythe

TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER: CALL (TOLL-FREE) 800-456-8410 OR GO TO www.narfe.org TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:

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

TO REACH A FEDERAL BENEFITS SPECIALIST:

(Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 785-256-1450 Email: mrsdocbusyb@yahoo.com

REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-660-2784 Email: pappysdad@cobridge.tv

REGION VII Sharon Reese (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 575-649-6035 Email: rvp7@narfe.org

REGION VIII Robert H. Ruskamp (California, Hawaii, Nevada and Republic of Philippines) Tel: 703-628-3234 Email: ruskampr@gmail.com

EMAIL fedbenefits@narfe.org

REGION IX Steven Roy

NARFE HEADQUARTERS

(Alaska, Idaho, Montana, Oregon and Washington) Tel: 425-344-3926 Email: stevenroy1@yahoo.com

606 N. Washington St. Alexandria, VA 22314 703-838-7760 Hours of operation: Monday-Friday, 8 a.m.-5 p.m. ET

REGION X Robert Allen (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 757-404-3880 Email: rvp10@narfe.org

NARFE Magazine (ISSN 1948-4453) is published monthly except in February and July 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 $48. 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 © 2023, 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 Magazine, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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NARFE MAGAZINE APRIL 2023

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From the President NARFE’S MISSION STATEMENT To support legislation and regulations beneficial to federal civilian employees and annuitants and potential annuitants under any federal civilian retirement system and to oppose those detrimental to their interests.

To promote the general welfare of federal civilian employees and annuitants and potential annuitants, to advise and assist them with respect to their rights under retirement, health and other employee and retiree benefits laws and regulations, and to represent their interests before appropriate authorities.

To cooperate with other organizations and associations in furtherance of these general objectives.

Do Your Part to Help Strengthen NARFE

T

he 2022 mid-term elections are now just a moment in time. The drawn-out selection of the Speaker of the House

is also now in the past. Since mid-January, Congress has taken the opportunity to settle in and prepare to do what they were elected to do for the American people.

While Congress has been making the headlines, our Advocacy Department has been setting the stage for representing the interests of all federal civilian employees and annuitants before the 118th Congress. Our legislative priorities include: • Oppose any cuts to earned federal retirement and health benefits • Support reform or repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) • Support full COLAs for federal retirees • Strengthen the Office of Personnel Management’s (OPM) Retirement Services Division • Protect enrollees in the Federal Long Term Care Insurance Program • Support improved integration of Medicare with the Federal Employees Health Benefits • Support market rate increases to federal pay rates and oppose federal employee compensation cuts • Improve government operations and protect the merit system Details for these priorities can be found for review on the advocacy portion of the NARFE website at www.narfe.org. It should be noted that, as I write this column, many of our priorities are “carry-over” issues; we are confident that we can regain the backing of those members of Congress who supported our issues in the 117th Congress.

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NARFE MAGAZINE APRIL 2023

NARFE members can provide support for these efforts by continuing to write letters, make telephone calls, send e-mail messages and contribute to NARFE-PAC. Through the development/enhancement of the Congressional District Liaison structure, both chapters and federations can provide vital assistance to all members who want to contact their representatives or simply want more information about our priorities. On a regular basis, during meetings on Capitol Hill, I always ensure that the member of Congress is aware of the number of federal employees, retirees and annuitants they represent.

As your National President, one of my top priorities will be to ensure that NARFE has a strong advocacy presence on Capitol Hill. To accomplish this, I must hear from those who matter the most: NARFE members. I want to hear about issues and your concerns first hand. All of you are passionate and dedicated and have the desire to make the organization stronger and to move NARFE forward. Membership is vital to the success of our organization. If each of you would recommend NARFE to a family member or friend, we can reverse the current membership decline.

New members will bring fresh ideas, help us grow, continue with our strong advocacy program and allow NARFE to remain the primary resource for the entire federal community.

Thank you.

WILLIAM SHACKELFORD NARFE NATIONAL PRESIDENT natpres@narfe.org

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NARFE Online READ NARFE MAGAZINE ONLINE LOG IN and read current and previous issues of NARFE Magazine on your computer, phone or tablet—or download it to peruse later. Visit www.narfe.org/magazine-issues.

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With nearly 30 exclusive discounts, you’ll find services and products you need to help you achieve and maintain the best possible quality of life.

And remember: Taking advantage of just one offer could more than pay for your annual membership.

Visit www.narfe.org/perks (or see p. 50) to see how your savings could add up.

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Get the most recent monthly and annual Thrift Savings Plan returns (G, F, C, S, I and L Funds) online at www.narfe.org/tsp-funds.

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STAY INFORMED Want to stay on top of key federal news and benefits information? Subscribe to NARFE Daily News Clips. This newsletter features breaking news and informative articles from various outlets curated just for NARFE members, as well as NARFE media statements, op-eds and more. Visit www. narfe.org/clips.

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NARFE MAGAZINE APRIL 2023

Interested in sharing NARFE Magazine with a friend to show them the value of membership?

Encourage them to request a digital download at www. narfe.org/communications/ narfe-magazine/.

Washington Watch

WEP and GPO Repeal Legislation Reintroduced

T

he Social Security Fairness Act, a bill that would fully repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), was reintroduced

January 9. The bill was submitted by Rep. Garret Gravies, R-LA, a different lead sponsor than in previous sessions, after Rep. Rodney Davis, R-IL, lost his primary election in 2022. Graves is joined by Rep. Abigail Spanberger, D-VA, marking this bill as a bipartisan effort. Of note, the legislation retained its bill number from the previous Congress and is still listed as H.R. 82.

The WEP and GPO penalize individuals who have dedicated their careers to public service, and their spouses, by taking away the Social Security benefits they have earned. The WEP affects more than 2 million beneficiaries, while the GPO affects more than 723,000 people, 48 percent of whom are widows/widowers and 52 percent of whom are spouses.

People who work tirelessly to earn retirement income and benefits, whether through employment covered by Social Security or paying a tax toward an annuity, shouldn’t be penalized for working hard. They deserve to collect all of what is owed them when they retire.

The bill’s reintroduction in the first week of the new 8

NARFE MAGAZINE APRIL 2023

Congress allows NARFE to quickly carry forward the momentum created in the 117th Congress, which saw the bill gather a staggering 305 cosponsors and receive committee attention.

Fortunately, the newly adopted House rules retained the existence of the House Consensus Calendar, which forces either committee action

or a floor vote if the bill receives 290 or more cosponsors (and retains that number for 25 legislative days).

At press time, H.R. 82 had already accrued 143 cosponsors.

NARFE will work throughout this Congress to increase the number of cosponsors and advance the legislation.

NARFE National President William “Bill” Shackelford wrote to every returning House member who previously cosponsored the bill, and NARFE’s members sent letters to their representatives urging support.

You can join the effort, too.

Visit NARFE’s Legislative Action Center and urge your representative to cosponsor the bill today.

—JOHN HATTON, STAFF VICE PRESIDENT, POLICY AND PROGRAMS

APRIL ACTION ALERT: Please ask your Representative to cosponsor the Social Security Fairness Act of 2023, H.R. 82, a bill reintroduced in the 118th Congress to repeal the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which unfairly reduce Social Security benefits for Civil Service Retirement System (CSRS) retirees. Visit NARFE’s Legislative Action Center at www.narfe.org and send your message today.

MYTH VS. REALITY MYTH: The Treasury Department steals federal retirement funds from the Thrift Savings Plan’s G Fund and the Civil Service Retirement and Disability Trust Fund (CSRDF) to prevent a default when the US hits the statutory debt limit, degrading the investments and retirement security of federal employees and retirees.

REALITY: While the Treasury Department employs “extraordinary measures,” such as premature redemption of treasury bonds held in the CSRDF, federal law requires all accounts and trust funds be made whole, with interest. The statutory guarantee has protected federal retirement funds numerous times, without fail.

House Passes Federal Hiring Reform Bill

O

n January 24, the House of Representatives passed the Chance to Compete Act, H.R. 159, with bipartisan support, 422-2. Reintroduced on January 9 by Rep. Virginia Foxx, R-NC, the NARFE-endorsed bill would improve cross-agency hiring by allowing agencies to share assessments with other agencies, expand use of subject matter experts in the hiring process, and shift focus on a candidate’s relevant experience and skill set over self-ratings and degrees.

Federal hiring has been problematic. Governmentwide hiring data from recent years have shown that more than half of all competitive examining certificates have been returned without a hire being made.

Competitive hiring practices are central to the concept of merit-based hiring, yet its ineffectiveness has led agencies to turn to 105 separate hiring authorities for many of their hires to meet critical needs.

By improving the candidate evaluation process, the bill should be able to increase hiring efficiency, ensuring agencies are

able to recruit the employees needed for success.

In NARFE’s letter of support, sent January 23, President William “Bill” Shackelford urged House members to support the bill, arguing it would address the problem of agencies that currently suffer from missioncritical skills gaps by “providing commonsense steps to improve competitive hiring practices and increase hiring efficiency.”

Notably, the Chance to Compete Act outlines four important measures to achieve skills-based hiring reforms: • First, skills-based assessments will give agencies the freedom to focus on select applicants who are able to properly display their ability to perform the job.

• Second, these assessments will be administered by subject-matter experts, allowing higher-ups within the agency to distinguish active performers among the group of candidates chosen.

• Third, agencies will be able to share these assessments, providing the candidate with a higher likelihood of getting

hired by an agency, so long as they prove they can perform well under another.

• Lastly, every human resource office of each agency must establish a specific group of staff who specialize in supporting the new skillsbased approach.

In the previous Congress, the same bill also gathered bipartisan support and passed the House. The Senate version of the bill was approved by Senate Committee on Homeland Security and Governmental Affairs on a bipartisan basis.

While both versions were similar, the two chambers were unable to pass a final version by the end of the year. But progress from the 117th Congress is continuing through the start of the new one.

With early House consideration, and robust support, the chances of finding Senate floor time increase.

Currently, the bill awaits action in the Senate Committee on Homeland Security and Governmental Affairs, along with its Senate counterpart, S.59.

—BY ROSS APTER, DIRECTOR, LEGISLATIVE AND POLITICAL AFFAIRS

US Hits Federal Debt Limit, Implements ‘Extraordinary Measures’

O

n Thursday, January 19, the outstanding debt of the United States reached its statutory debt limit,

which currently stands at $31.4 trillion.

In response, the Treasury Department announced it would

use “extraordinary measures” to continue obligatory government SEE DEBT LIMIT ON P. 11 NARFE MAGAZINE www.NARFE.org

9

Washington Watch

NARFE GRASSROOTS ADVOCACY LEARN MORE about how you can take action to protect your earned pay and benefits by reviewing NARFE Grassroots materials at www.narfe.org/advocacy.

NARFE Members Prepare to Engage With Lawmakers During the April Congressional Recess

T

he first extended congressional recess of the year is fast approaching. The House and Senate are scheduled to be in recess April 3-14, giving members two full weeks to meet with their representative and senators. As the break is happening within the first 100 days of the new Congress, freshmen lawmakers especially will be eager to report on the work they have begun in their newly assigned committees.

This is a great time to seek opportunities to discuss NARFE’s legislative priorities and continue developing relationships with lawmakers.

In January, advocacy leaders residing in districts and states of newly elected lawmakers emailed a one-page welcome packet to introduce themselves and NARFE, and educate them about issues affecting the federal community.

In February, we urged leaders to push new members of Congress to sign on to H.R. 82, the Social Security Fairness Act, to repeal the Windfall Elimination Provision (WEP), and the Government Pension Offset (GPO).

NARFE advocacy leaders can use the April recess as an opportunity to follow up

10

NARFE MAGAZINE APRIL 2023

with a meeting and as the next step in their advocacy and relationship-building strategy.

If leaders are unable to secure a scheduled meeting, members of Congress will also be participating in community events. Members can visit their

THIS IS A GREAT TIME TO SEEK OPPORTUNITIES TO DISCUSS NARFE’S LEGISLATIVE PRIORITIES AND CONTINUE DEVELOPING RELATIONSHIPS WITH LAWMAKERS.

lawmakers’ webpages from the House (www.house.gov) and Senate (www.senate.gov) chamber websites to access event schedules. And while members review dates for the April recess, they can also map out their calendars with scheduled recess dates for the remainder of the year.

At this stage in the legislative process, NARFE’s

advocacy efforts are greatly aided by local member grassroots engagement to help increase cosponsors of bills it supports, as it narrows the list of offices requiring more targeting lobbying.

Continuous interactions with lawmakers keep federal issues and concerns alive and fresh on their minds while they engage with other constituents who are also competing for their time to discuss other issues.

Members should ensure they are ready to discuss the issues by visiting the advocacy page on NARFE’s website at www. narfe.org to access up-to-date legislative information. The advocacy team is continuously updating issue briefs, fact sheets, a know-before-you-go checklist and other resources to ensure successful member engagement.

Members can also visit the Legislative Action Center on the NARFE website to engage in letter-writing campaigns for specific issues.

Thank you for your advocacy and continued support of NARFE’s legislative goals.

Contact the advocacy staff at advocacy@narfe.org if you have any questions.

—BY MARSHA PADILLA-GOAD, DIRECTOR, GRASSROOTS PROGRAM

DEBT LIMIT FROM P.9

spending. Those measures include accessing funds held by the Civil Service Retirement and Disability Fund, Postal Service Retiree Health Benefit Fund and Thrift Savings Plan’s G Fund to prevent a default by the federal government.

The good news is that it’s just an accounting gimmick; the tactic does not affect the payment of annuities, health benefits, or loans or withdrawals from the TSP. Federal law requires the reversal of any extraordinary measures after the debt limit has been suspended or increased, including the refund of interest that may have accrued during the suspension to make each

account whole. In her letter to Congress, Treasury Secretary Janet Yellen wrote, “After the debt limit impasse has ended, the CSRDF, Postal Fund, and G Fund will be made whole,” as they have been numerous times in the past.

However, Yellen warned that without congressional action, the extraordinary measures could be exhausted as early as June, preventing the US government from meeting its financial obligations. Without an increase in the debt limit, the government might be forced to delay payment of federal wages and retirement annuities until the federal government had enough cash on hand to pay them. If the crisis dragged on,

CONTRIBUTE TO

the duration of the delays would increase.

At press time, congressional negotiations over how to resolve the issue were intensifying, with Republicans requesting that President Biden make cuts to federal spending to raise the borrowing limit once more.

However, President Biden, joined by many congressional Democrats, have insisted that they would not negotiate on future spending decisions to gain the support of Republicans to increase the debt limit.

For more information on the debt limit, NARFE’s fact sheet online at www.narfe.org/debtfaqs.

—JOHN HATTON, STAFF VICE PRESIDENT, POLICY AND PROGRAMS

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Washington Watch LEGISLATIVE RESOURCES NARFE NewsLine – A weekly newsletter that goes out to NARFE members on Tuesdays and includes weekly recaps of legislative news, compiled by NARFE’s advocacy and communications teams.

LEGISLATIVE ACTION CENTER – A one-stop site to send a letter to Congress, and more, at www.narfe.org.

New Leaders Head Committees of Importance to NARFE

A

t the center of NARFE’s congressional universe are two committees: the newly named House Committee of Oversight and Accountability (COA) and the Senate Committee on Homeland Security and Governmental Affairs (HSGAC).

Changes in control of the House and retirements in the Senate have brought new faces to leadership positions for these two critical committees, making it important for NARFE members to know who these lawmakers are, along with a bit about their background.

The new chairman of the House Committee on Oversight and Accountability is Rep. James Comer, R-KY. Comer represents Kentucky’s 1st Congressional District, which spans the western portion of the state into its center. First elected to Congress in 2016, Comer has a background in agriculture. He was elected as Kentucky’s commissioner of agriculture in 2011 after serving six terms in the Kentucky House of Representatives. Prior to his time in elected office, Comer was in the business world and started a farm. In the previous Congress, Comer served as the ranking member of COA. His listed priorities as the newest chairman include reducing waste, fraud and abuse in government, along

12

NARFE MAGAZINE APRIL 2023

with reducing burdensome regulations and boosting government transparency and accountability. Comer had a 44 percent NARFE voting record in the last Congress and has a 30 percent lifetime NARFE voting record.

The Oversight committee also has a new ranking member this Congress. Rep. Jamie Raskin, D-MD, represents Maryland’s 8th Congressional District, home to many of the immediate suburbs north of Washington, DC. Raskin enters his fourth term in Congress, representing his district since 2017. Prior to serving in Congress, he was a Maryland state senator and a constitutional law professor at the American University Washington College of Law. Raskin has served on the Oversight committee since entering Congress and was previously chairman of the Subcommittee on Civil Rights and Civil Liberties. He had a 100 percent NARFE voting record in the last Congress and has an 87 percent lifetime NARFE voting record.

Over in the Senate, Sen. Gary Peters, D-MI, remains the chairman of the Committee on Homeland Security and Governmental Affairs. Peters was first elected to the House of Representatives in 2008 and

made the jump as Michigan’s junior senator in 2014. Before coming to Congress, Peters served in many positions, including time in state government, the Navy Reserve, the Michigan Senate and the private sector. Per the HSGAC website, Peters is focused on fighting for a “stronger economy, good-paying jobs, affordable health care, a secure retirement and an opportunity for everyone to succeed.” Peters had a 100 percent NARFE voting record in the last Congress and has a 95 percent lifetime NARFE voting record.

While the chairman position of HSGAC stayed the same, the committee has a new Ranking Member, with Sen. Rand Paul, R-KY, taking on the position from retired Sen. Rob Portman, R-OH. Paul was first elected to the Senate in 2010. Prior to coming to Congress, Paul was a practicing ophthalmologist in Bowling Green, KY. Per his website, Paul describes himself as “an outspoken champion for constitutional liberties and fiscal responsibility” and fights to “return government to its limited, constitutional scope.” Paul had a 0 percent NARFE voting record in the last Congress and has an 11 percent lifetime NARFE voting record.

—BY ROSS APTER, DIRECTOR, LEGISLATIVE AND POLITICAL AFFAIRS

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Name on card (print) _______________________________________________ Signature _______________________________________ Date ___________

Quantity ______________ $25 each (includes shipping and handling) VA sales tax ___________ VA residents add 6% tax ($1.50) per book Total cost _____________ Mail to: NARFE Congressional Directory 606 N. Washington Street Alexandria, VA 22314-1914

Please allow 3-4 weeks for delivery. Call NARFE’s Advocacy Department at 800-456-8410, option 3, to order by phone.

Washington Watch

NARFE BILL TRACKER

THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO LEGISLATION NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE

FEDERAL PERSONNEL POLICY

BILL NUMBER / NAME / SPONSOR H.R.159/S.59: Chance to Compete Act of 2023 Rep. Virginia Foxx, R-NC / Sen. Kyrsten Sinema, I-AZ Cosponsors: H.R. 159: 3 (D) 2 (R) S. 59 1 (D) 2 (R) H.R. 536/ S. 124: The Federal Adjustment of Income Rates (FAIR) Act Rep. Gerry Connolly, D-VA / Sen. Brian Schatz, D-HI

WHAT BILL WOULD DO

LATEST ACTION(S)

Implements merit-based reforms to the civil service hiring system that replace degree-based hiring with skills- and competencybased hiring.

H.R. 856/ S. 274: Comprehensive Paid Leave for Federal Employees Act / Rep. Don Beyer, D-VA / Sen Brian Schatz, D-HI

Referred to the Senate Committee on Homeland Security and Governmental Affairs 1/26/2023 Referred to the House Committee on Oversight and Accountability, Veteran’s Affairs and House Administration 2/7/2023

Extends paid leave to federal and postal employees for all conditions covered by the Family and Medical Leave Act (FMLA).

Referred to the Senate Committee on Homeland Security and Governmental Affairs 2/7/2023

Cosponsors: H.R. 856: 1 (D) 1 (R) S.274: 9 (D) 0 (R) 1 (I) H.R. 82: The Social Security Fairness Act Rep. Garret Graves, R-LA SOCIAL SECURITY

Cosponsors: H.R. 82: 70 (D) 34 (R) H.R. 716: The Fair COLA for Seniors Act / Rep. John Garamendi, D-CA Cosponsors: H.R. 716: 19 (D) 0 (R)

FEDERAL ANNUITIES

H.R. 866: The Equal COLA Act Rep. Gerry Connolly, D-VA Cosponsors: H.R. 866: 10 (D) 0 (R)

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

Referred to the House Committee on Ways and Means. 1/9/2023

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

Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Accountability, and Armed Services 2/1/2023

Provides Federal Employees Retirement System (FERS) retirees with the same annual cost-of-living adjustment (COLA) as Civil Serve Retirement System (CSRS) retirees.

Referred to the House Committee on Oversight and Accountability 2/8/2023

NARFE’s Position:

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NARFE MAGAZINE APRIL 2023

Referred to the Senate Committee on Homeland Security and Governmental Affairs 1/24/2023

Provides federal employees with Referred to the House an 8.7 percent average pay raise Committee on Oversight and in 2024.

Accountability 1/26/2023

Cosponsors: H.R. 536: 26 (D) S. 124: 14 (D) 1 (I) FEDERAL COMPENSATION

Passed the House under suspension of the rules 1/24/2023

Support

Oppose

No position

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Questions & Answers

Q&A

THE FOLLOWING QUESTIONS & ANSWERS were compiled by NARFE’s Federal Benefits Institute experts. NARFE does not provide legal, financial planning or tax advice or assistance.

EMPLOYMENT PLANNING FOR RETIREMENT l am thinking of retiring in the next couple of years. What is the best date?

Q A

There are many factors to consider when choosing to retire from government service including having finances in place, deciding where to live, making plans of what you will do with your time, etc. Once you decide that you are mentally prepared and financially ready to retire, the first step to choosing your date is to confirm with your HR office your retirement eligibility and that you meet the “immediate retirement” and “5-year test” to be eligible to continue Federal Employees Health Benefit (FEHB) and Federal Employees Group Life Insurance (FEGLI) in retirement.

FERS retirement benefits are generally effective on the first day of the month following your retirement (exceptions for disability retirement, survivors annuity, and mandatory retirement situations). With this in mind, it makes sense to retire on the last day of the month so that you are paid your salary

18

NARFE MAGAZINE APRIL 2023

until the date your retirement benefit commences. Under the older CSRS retirement plan, there is a little more flexibility.

CSRS retirements can begin the day after the 1st, 2nd or 3rd day of the month. Unless you have a very short federal career, it is probably best to retire at or near the end of the month (or one of the first three days of the month for CSRS and CSRS Offset), regardless of the month, so that you don’t sacrifice a retirement benefit worth thousands of dollars in exchange for a few days of salary. For example, August 11 is a Friday at the end of a leave period, but your retirement wouldn’t begin until September 1st. This means that the only income you would have for August would be nine days of salary (August 1 - 11) with no retirement payment for the month. Wouldn’t it be better to retire on August 31 and be paid your salary for the entire month since either way, your first

retirement check would be for the month of September?

To maximize your lump sum payment of your annual leave balance, consider retirement at or near the end of the leave year. The last day of the leave year for most federal employees is January 13, 2024, January 11, 2025 and January 10, 2026 over the next few years.

Q

I am planning to retire on September 30, 2023.

Will I be able to make the maximum contribution to the TSP even though I am not going to work the entire year?

A

Yes, however, you will have to make those contributions by payroll allotment, which means larger withholdings between now and your date of retirement. The annual limit for 2023 is $22,500 and an additional $7,500 for the annual catch-up contribution limit for those employees who will turn 50 or over in 2023. If you decide to work after retirement and continue to contribute to a retirement plan, be aware of the

risk of making excess deferrals.

The elective deferral and catch-up contribution limits apply to all contributions you make to the TSP and most other employersponsored defined contribution plans (e.g., 401(k), 403(a), or 403(b) plans). If you exceed these limits by contributing to more than one employer plan, you may request a refund of excess deferrals from the TSP for the amount of contributions above these limits. To learn more about deferrals, read the fact sheet Annual Limit on Elective Deferrals available at tsp.gov.

FSA AFTER RETIREMENT

Q A

Can I continue to use my Flexible Spending Account funds after retirement?

Flexible Spending Accounts or FSA is an employee benefit and not available once retired. According to fsafeds.com, the balances in your Health Care FSA (HCFSA), Limited Expense Health Care FSA (LEX HCFSA) and Dependent Care FSA (DCFSA) are treated differently if you separate or retire before the end of the calendar year. Your HCFSA or LEX HCFSA will terminate as of the date of your separation or retirement. There are no extensions. Any eligible health care expenses incurred prior to the date of separation will still be reimbursed but those incurred after the separation date are not reimbursable, even if you accelerated your allotments.

However, if you used your entire elected amount before FSAFEDS has deducted it from your pay, you will not be responsible for the remaining allotments. This means that if you retire at the end of pay period 10 and have contributed only $1,000 of your $2,600 election for 2023, you

may be reimbursed the entire annual elected amount of $2,600 prior to your retirement date and you will not be responsible for the remaining $1,300 allotments.

Your DCFSA remaining balance can continue to be used to pay for eligible dependent care expenses until your account balance is depleted or the end of the calendar year, whichever comes first.

SERVICE DEPOSITS

Q

My agency does not know I’ve made the civilian deposit for non-covered (a.k.a. temporary) creditable service. Will I still receive credit?

A

The deposit is on record with the Office of Personnel Management (OPM). You should have received a receipt from OPM when you made your deposit that includes your CSD (Civil Service Deposit) number. On your Application for Immediate Retirement,

for CSRS or FERS, you will indicate that you previously filed an application for deposit or redeposit under the section titled “Other Claim Information.” In this area, you can also supply your CSD number and indicate if you ever took a refund of retirement contributions, have made voluntary contributions (CSRS only), have previously retired from federal service (if you are a reemployed annuitant), or if you ever received a return of excess CSRS or FERS retirement deductions. Providing complete and accurate information on your retirement application will help smooth the processing of your retirement application.

RETIREMENT NO BENEFITS IN ADVANCE

Q

A friend is now in hospice, how can they arrange for OPM to advance retirement benefits to help pay for care?

COUNTDOWN TO COLA The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.9% in January 2023. To calculate the 2024 cost-of-living adjustment (COLA), the 2023 third-quarter indices Monthly % % Change MONTH CPI-W Change from 291.901 will be averaged and OCTOBER 2022 293.003 0.40 0.38 compared with the 2022 third-quarter NOVEMBER 292.495 -0.17 0.20 average of 291.901.

DECEMBER 291.051 -0.49 -0.29 The percentage JANUARY 2023 293.565 0.90 0.57 increase determines FEBRUARY the COLA. January’s MARCH index, 293.565, is up 0.57% from the base.

APRIL The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services.

MAY JUNE JULY AUGUST SEPTEMBER

For FECA COLA updates, visit narfe.org and search for FECA.

NARFE MAGAZINE www.NARFE.org

19

Questions & Answers

A

OPM does not offer advanced annuity payments, however, there may be other ways to help with hospice costs. Most of the FEHB plans provide coverage for hospice care. In addition, if you are enrolled and qualified to receive hospice care through Medicare Part A, there are extensive hospice care benefits (https://www.medicare.gov/ coverage/hospice-care).

If enrolled in Basic FEGLI (Federal Employees Group Life Insurance), there is a living benefit available. You can elect a living benefit if you are diagnosed as terminally ill with a life expectancy of nine months or less, and you have not assigned your insurance. Only Basic insurance is available for a living benefit. If you are an employee, you can elect either a full living benefit (all of your Basic insurance) or a partial living benefit (expressed as a multiple of $1,000). Annuitants and those individuals receiving Workers Compensation from the Department of Labor can elect only a full living benefit.

You or a person who has power of attorney for you must contact OFEGLI at 1-800-633-4542 to obtain the elect Living Benefits (Form FE-8).

BENEFICIARY DESIGNATIONS

Q

My spouse passed away and now I’m being told that I am not entitled to his life insurance. How can that be? We have been married over 20 years!

A

Unfortunately, if there is a valid designation of beneficiary form on file, it will have priority over the

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NARFE MAGAZINE APRIL 2023

standard order of precedence.

As a result of failing to keep designations updated, there have been many surviving spouses given this devastating news. To update your FEGLI beneficiary, use SF 2823, Designation of Beneficiary (rev. 5/14) and take advantage of the fillable form available online at OPM.gov under the “forms” heading.

Remember to update all relevant designation of beneficiaries for CSRS or FERS, SF 3102 (rev. 10/22) and also TSP (go to “My Account” at www.tsp. gov to electronically update your beneficiary election).

Employees may also need to update the beneficiary designation for unpaid compensation, SF 1152 (rev. 9/11) for your last paycheck, unused annual leave, etc.

FEDVIP PREMIUMS

Q

I have dental and vision benefits under the Federal Employees Dental and Vision Insurance Program (FEDVIP). I am paying $40 a month for BC/BS FEP Dental, but I have seen lower premiums advertised, so why am I paying more?

A

The premiums for the dental and vision plans under FEDVIP are based on: • “Rating areas” according to your ZIP code • Enrollment in self only, self + 1 or self and family; and • Election of standard or high option.

BENEFEDS (1-877-888-3337 or BENEFEDS.com) is the online benefit management portal where members can enroll in and manage their FEDVIP dental and vision plans.

POSTAL SERVICE HEALTH BENEFITS

Q

What will happen to those of us who worked for the USPS when they change to the Postal Service Health Benefits (PSHB) program?

A

The PSHB Program is a new, separate program within the FEHB Program, administered

by OPM that will provide health insurance to eligible Postal Service employees, annuitants, and their eligible family members starting in 2025. The PSHB Program coverage will replace FEHB Program coverage for these groups. OPM is currently working with the carriers to develop the health plans that will be offered under PSHB. These details, including which plans will participate, will be available in 2024. NARFE has prepared a Fact Sheet on the Postal Service Reform Act of 2022 (https:// www.narfe.org/advocacy/ issue-briefs-and-fact-sheets/) and OPM also has information available (https://www.opm.gov/ healthcare-insurance/psbh/).

FEHB AND MEDICARE

Q

Is it advisable to continue FEHB Coverage along with Medicare Parts A and B? I have been continuing my Blue Cross/Blue Shield coverage since retiring in 2015. I am also enrolled in Medicare Parts A and B as well. What is the advantage in carrying FEHB along with Medicare?

A

You may continue FEHB coverage without enrolling in Medicare; however it is strongly recommended that you don’t cancel your FEHB coverage!

There are advantages of having Medicare Parts A and B (known as original Medicare) in retirement where it will serve as the primary payer along with FEHB as secondary coverage.

Many FEHB plans offer incentives to enroll in Medicare A and B such as • waiver of cost sharing (deductible, copays and coinsurance) when Medicare pays first, • reimbursement of some of the Part B premium • enhanced Medicare Advantage benefits.

Many of the plans that work best with Medicare are among the plans with the lowest premiums. To learn more about coordination with Medicare,

visit your health plan website and review the plan brochure (coordination with Medicare can be found in Section 9 of most plan brochures) https:// www.opm.gov/healthcareinsurance/healthcare/planinformation/plans/. You can also call the number on the back of your health benefit card.

Be sure to visit the NARFE Federal Benefits Institute where you will find a collection of webinars on the topic of Medicare and FEHB. https:// www.narfe.org/federal-benefitsinstitute/narfe-webinars/ webinar-archive/

Q

I have BC/BS and Medicare Parts A+B. I received a

notice regarding a Medicare reimbursement and would like to know if this is a scam or not.

A

Several of the FEHB plans offer a partial reimbursement or a reduction of the Medicare Part B premium.

To learn more, you may call the number on the back of your FEHB card or visit the plan website for further details.

To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

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NARFE MAGAZINE www.NARFE.org

21

Benefits Brief

T

Medicare Resources: Who Can You Trust? he most common questions NARFE members ask about their retirement benefits focus on Medicare and the Federal Employees Health Benefits program, including:

• Do I need FEHB if I have Medicare?

• Do I need Medicare if I have FEHB? • Why do I need Medicare and FEHB? • Should I join a Medicare Advantage option?

And they go on! Insurance is complicated enough; when you add Medicare to the mix, there’s a lot to learn. For many federal employees and retirees, it’s common to continue with the same FEHB plan through their federal careers and into retirement. As one federal benefits specialist puts it when she speaks with federal employees and retirees, “I’ll bet you have had the same health plan since President Clinton was in office. Or maybe it was President Reagan!”

The issue of “what to do about Medicare” arises initially for those retirees who are receiving Social Security benefits at age 65 and are automatically enrolled in Medicare. Receiving the red, white and blue Medicare card from Social Security with information about how much you will have to pay for Medicare Part B will get your attention. In addition, as we approach age 65, we are forced to understand the role of Medicare when added to our health insurance since our mailboxes are deluged with mail about all of the Medicare supplemental

22

NARFE MAGAZINE APRIL 2023

plans and Medicare Advantage options. Unfortunately, most of the resources sent in the mail are from private sector plans and are not going to be of much help when trying to answer the questions you have regarding the coordination of Medicare and FEHB. And remember that our FEHB plans will continue to cover us even if we return the red, white, and blue Medicare card declining Medicare Part B. How do we know what to do?

NARFE has addressed this issue through feature stories and the webinars that are available through the NARFE Federal Benefits Institute.

These resources are specifically designed for federal employees and annuitants who are enrolled in the FEHB program. The combination of TRICARE For Life (TFL) and Medicare is also addressed for military retirees and their spouses.

If you have questions, you don’t have to wait until Open Season to learn more. There are many excellent resources to learn about how Medicare and FEHB (or TFL) coordinates coverage.

Use these online references to begin your education, and in some cases you can contact the agency or organization to get a print version of the resource.

Here are some trusted references where you can get the facts about your options:

• Join FEDHub, NARFE’s online community, where you can share stories and experiences as well as learn from other NARFE members and NARFE’s federal benefits experts, at fedhub.narfe.org.

• FEHB brochures and websites offer plan-specific information: https://www.opm.gov/ healthcare-insurance/.

• Consumers Checkbook Guide to Health Plans for Federal Employees provides articles on Medicare and FEHB: https://help.checkbook.org/ category/66-fehb-medicare • TRICARE For Life: https:// www.tricare.mil/Plans/ HealthPlans/TFL • Medicare basics, costs, coverage and much more are at https://www. medicare.gov/basics/ get-started-with-medicare • Social Security is where you can learn about enrollment and paying Medicare Part B premiums. Find “Retirement Information for Medicare Beneficiaries” and “How to Apply for Medicare during your Special Enrollment Period” at www.ssa.gov/pubs.

Yes, there is a lot to learn, but if you take advantage of the tools available through NARFE and other trusted resources, you will be able to navigate these new waters and find yourself better prepared for your future health care needs.

—MICHELE BOLLIER IS A RETIREMENT AND BENEFITS SPECIALIST WITH RETIRE FEDERAL.

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MAXIM SOCIAL SECURITY NARFE’s Tammy Flanagan Shares What to Consider Before Claiming Your Benefit

BY TAMMY FLANAGAN

24

NARFE MAGAZINE APRIL 2023

IZING

NARFE MAGAZINE www.NARFE.org

25

W

hen Ida Mae Fuller received the first monthly Social Security retirement benefit in 1940, she was 65 years old. As a secretary, she paid into the program $24.75 over the three years that Social Security collected payroll taxes. Her initial benefit was $22.54 per month, and over her lifetime, she collected a total of $22,888.92. Ida Mae lived to 100—you could say that she maximized her Social Security benefit!

In 2022, nearly nine out of 10 people age 65 and older were receiving a Social Security benefit.

The following statistics from the Social Security Administration (based on research released in 2021 using 2015 data) show how important those benefits are to Americans: • Social Security benefits represent about 30% of the income of the elderly.

• Among elderly Social Security beneficiaries, 37% of men and 42% of women receive 50% or more of their income from Social Security.

• Among elderly Social Security beneficiaries, 12% of men and 15% of women rely on Social Security for 90% or more of their income.

What does it mean to maximize Social Security today? Whether you have other sources of retirement income, such as savings in the Thrift Savings Plan, a 401(k) or IRAs, or a pension such as a FERS retirement benefit, or even if you are still working, it pays to give some thought about when to claim your Social Security retirement benefit.

Unlike some types of retirement income, you can’t exhaust your Social Security benefit. As with a government pension, another deposit goes into the bank every month, and once a year it is generally increased by a cost-of-living adjustment.

When You Can Claim Benefits

We all have the same eight-year window to claim our Social Security retirement benefit, which begins at age 62 and lasts to age 70, when we reach the 26

NARFE MAGAZINE APRIL 2023

maximum value of delayed retirement credits. The Full Retirement Age (FRA) has been increasing from 65 to 67 since the 1983 Social Security Amendments and is based on your year of birth (see the chart below). There is a big difference in the amount of benefit payable at age 62 compared with age 70. This is influenced by not only your age, but also your lifetime history of Social Security covered wages and your entitlement to benefits on someone else’s work record or their entitlement to yours.

Social Security FRA Year of Birth

Full (normal) Retirement Age

1943 - 1954

66

1955

66 and 2 months

1956

66 and 4 months

1957

66 and 6 months

1958

66 and 8 months

1959

66 and 10 months

1960 and later

67

Unlike some types of retirement income, you can’t exhaust your Social Security benefit. As with a government pension, another deposit goes into the bank every month, and once a year it is generally increased by a cost-of-living adjustment.

The following example is provided by the Social Security Administration: Let’s say you turn 62 in 2023, your FRA is 67, and your monthly benefit starts at $1,000. If you start to get benefits at age 62, we’ll reduce your monthly benefit by 30% to $700 to account for the longer time you receive benefits. This decrease is usually permanent. If you choose to delay your receipt of benefits until age 70, you would increase your monthly benefit to $1,240.

This increase is the result of delayed retirement credits you earn for your decision to postpone receipt of benefits past your FRA. The benefit at age 70 in this example is about 77% more than the benefit you would receive each month if you start to get benefits at age 62 — a difference of $540 each month.

The key numbers in this example are the 30% permanent reduction for applying at age 62 and the 77% increase of claiming at age 70 compared to age 62. Those are significant numbers worth considering when deciding when you’re going to claim your Social Security benefit.

The example provided by Social Security is below the average Social Security monthly benefit amount of $1,827/month (after the 8.7% 2023 COLA) for all retired workers. If you earned at or above the maximum taxable earnings ($160,200 in 2023) since age 22 and you claimed your benefit in January 2023, the maximum monthly benefit

QUESTIONS & ANSWERS ON WHEN TO CLAIM BENEFITS

By Tammy Flanagan To gather insight on the best strategies for maximizing Social Security, I turned to Mary Beth Franklin, CFP. Mary Beth has been a journalist since the early 1980s and covered major political and economic issues including the Social Security reform legislation of 1983 (the year of the Windfall Elimination Provision).

Today, she writes for Investment News and is the author of the eBook, Maximizing Social Security Benefits, in its 10th year of publication, which provides guidance on how future retirees can make the most of their retirement benefits.

Here are Mary Beth’s answers to some of the most common questions regarding maximizing Social Security benefits: TF What are the primary factors that influence when to claim Social Security?

MBF Age, marital status, health and other sources of income. If you can afford to delay, up until age 70, you will get a bigger check for the rest of your life. That assumes you are healthy enough and wealthy enough to wait.

Healthy enough in that you will live a long time and wealthy enough in that you have other sources of income while you wait to collect Social Security.

TF Who is the best person to discuss claiming Social Security with?

MBF Some SSA reps can be very helpful.

Others may not be. SSA employees are generally overworked and understaffed. I recommend getting advice from a financial adviser or Social Security expert about how and when you should claim Social Security.

NARFE MAGAZINE www.NARFE.org

27

TF What should people know about the future of Social Security?

MBF Social Security faces long-term financial problems that Congress must address during the next decade. I believe Congress will tackle SS reform, just as it did in 1983—the last time the program was in danger of not being able to pay full benefits. SS has never missed a benefit payment in its more than 85-year history.

But even in the worst case scenario, where Congress doesn’t act in time and the SS trust funds are depleted around 2034, there would still be enough revenue from ongoing payroll taxes to pay about 80% of promised benefits.

Social Security is not going bankrupt as some critics claim.

TF What would be a reason when it would make sense for someone to suspend Social Security benefits at their FRA? MBF Anyone can voluntarily suspend their benefits at their FRA or later—up to age 70. Their benefit payments would stop. But in the meantime, they would earn delayed retirement credits of 8% per year up to age 70. This strategy could make sense for a married couple if the primary breadwinner claimed reduced SS benefit early, perhaps not realizing that if he died first, it could mean a smaller survivor benefit for his widow. Survivor benefits are worth up to 100% of what the late worker was collecting or entitled to collect at the time of death.

TF How long does someone need to be married to qualify for spousal benefits?

MBF To qualify for benefits on a spouse’s earning record (if larger than your own SS retirement benefit), you must be married for at least one year. To qualify for survivor benefits, you must be married at least 9 months and at the time of death of the spouse. To qualify for benefits as an eligible divorced spouse, you must be married at least 10 years, divorced and currently single. Although you lose the right to collect spousal benefits on a living ex-spouse if you remarry, you may be able to collect survivor benefits on an ex-spouse if you waited until 60 or later to remarry—even if you are married to someone else at the time.

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NARFE MAGAZINE APRIL 2023

payable at age 62 would be $2,572/month. For someone who achieved the maximum delayed credits by delaying their benefit to age 70 and continued working at maximum taxable wages until January 2023, they would be entitled to a monthly payment of $4,555/month, which includes cost of living adjustments from age 62.

Questions to Ask

Is the goal to live long enough to “break even?”

Or is it more important to maximize your financial independence over your lifetime? If we knew that we would live to age 81, then is it really a matter applying at age 62 and receiving $2,572 for 228 months (19 years x 12 months) with a total payout of $586,416, vs. waiting to apply at age 70 to receive $4,555 for 132 months (12 years x 11 months) or a total of $601,260? The reality is, that since our expiration date is non-negotiable, this means that we’ll either receive a smaller benefit for more years or a larger benefit for fewer years. Unfortunately, some workers won’t live long enough to claim their benefits (although their surviving children or spouse might benefit from their contributions). Others, like Ida Mae Fuller, will receive benefits for decades.

When deciding when to claim your Social Security retirement, consider your answers to the following questions: • Do you need the money? If you didn’t claim your Social Security retirement benefit, could you pay your bills without depleting your retirement savings too quickly?

• Are you in good health? Claiming your benefit early may result in a larger total payout than delaying your benefit if you should die before age 81.

• Do you have dependent children? Your unmarried children may be eligible to receive benefits. Your child can receive up to half of your full retirement or disability benefits. There is a limit, however, to the amount of money Social Security can pay to a family, which is no more than 150% to 180% of your full benefit amount.

• Are you working past age 62? Until you reach your FRA, there is an earnings limit. For 2023, this limit is $21,240 if you are under your FRA. This means your benefit will be reduced by $1 for every $2 of earned income over the annual limit. The

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TF Is it best to apply online, over the phone, or in person? Does it make any difference?

MBF I urge people to claim benefits online when possible. You can file for benefits up to 4 months before you want benefits to begin.

However, survivors must contact SSA by phone or in person to apply for survivor benefits.

TF What is the best strategy for a couple where one spouse retired under CSRS and has very little Social Security and the other spouse has a full career of Social Security covered earnings?

MBF The main reason that married couples may want to delay SS until 70 is to create the largest survivor benefits possible. But if a public employee spouse is not eligible for spousal or survivor benefits due to Government Pension Offset reductions, the private sector spouse may not want to delay claiming Social Security beyond their FRA. TF If an individual is working at their FRA, is it best to claim the benefit prior to retirement or would it make more sense to delay the claim until age 70?

MBF Generally it would make sense to delay Social Security until 70 to create a bigger future benefit. Also, SS benefits are subject to federal, and in some cases, state income taxes. Collecting SS benefits while still working means more benefits will be taxed for a longer period of time.

TF What do you say to someone who says that they will claim their benefit at age 62 even though they don’t need the money so that they can invest their Social Security benefit instead of delaying until age 70?

MBF Good luck! You may make money or you may lose money. For a fair comparison, consider how much you could earn on a riskfree investment , such as a CD, compared to the 8% per year in delayed retirement credits.

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NARFE MAGAZINE APRIL 2023

Today, most Americans, including federal workers, have paid into Social Security during their entire working career and count on this benefit to provide a portion of their retirement income. earnings test disappears after your FRA. It is less likely that you would need your Social Security benefit if you are still employed.

• Have you considered the risk of living too long?

Did you know that there are currently 5,829,000 Social Security beneficiaries who are 85 and over (approximately 2,157,000 are men and 3,673,000 are women)?

• If you are a widow or widower, you may claim the benefits from your late spouse while delaying the claim for your own earned benefit amount.

For some married couples, it may make sense for one spouse to delay claiming Social Security to maximize the payment to the surviving spouse.

CSRS vs. FERS

Today, most Americans, including federal workers, have paid into Social Security during their entire working career and count on this benefit to provide a portion of their retirement income.

In the past, Federal workers weren’t covered

by Social Security since the single benefit, Civil Service Retirement System, was implemented 15 years before Social Security was signed into law in 1935. That changed in 1984, when Congress required newly hired Federal workers to pay into FICA, which was the reason for creating the 3-tiered Federal Employees Retirement System.

FERS was implemented in 1987 and included a less generous government pension along with Social Security coverage and the Thrift Savings Plan. The flexibility of these three parts makes it possible for Federal retirees to decide when it makes sense to ‘turn on” each retirement benefit to maximize retirement income.

—TAMMY FLANAGAN IS THE PRINCIPAL OF TAMMY FLANAGAN LLC (RETIREFEDERAL.COM). SHE IS A FEATURED PRESENTER ON NARFE’S FEDERAL BENEFITS INSTITUTE WEBINARS.

NARFE Member Survey LAST CHANCE! LET US KNOW WHAT’S IMPORTANT TO YOU 1. Please indicate whether you are a: o Current federal employee o Current postal employee o Former federal or postal employee (not retired) o Federal or postal retiree o Current/Surviving/Former spouse of a federal/postal employee or retiree 2. Please indicate which federal retirement system you are covered by: o Civil Service Retirement System (CSRS) o CSRS Offset o Federal Employees Retirement System (FERS) 3. Please rate how important you think it is for NARFE’s advocacy efforts to focus on the following issues. (1 = most important, 6 = least important) ____ Improving the accuracy of cost-of-living adjustment (COLA) calculations ____ Repeal or reform of the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) ____ Providing relief from Federal Long-Term Care Insurance premium increases ____ Reducing the cost of prescription drug coverage under the Federal Employees Health Benefits (FEHB) program ____ Protecting your earned federal benefits — pensions, health insurance — from cuts ____ Protecting the merit-based civil service system ____ Improving Office of Personnel Management (OPM) customer service to federal annuitants

4. How important are the following NARFE resources and topics to you?

(1 = most important, 6 = least important) ____ Access to the latest news and information to keep me current on issues affecting me as a federal employee/retiree ____ Connecting with other federal employees and/ or retirees ____ Strengthening NARFE’s advocacy efforts in Washington through my membership ____ Expert advice about taxes, the Thrift Savings Plan, etc., to help me manage my federal benefits as part of an effective financial plan ____ In-depth analysis of and information about Open Season and other changes to FEHB to help me make good decisions about my federal health benefits ____ Saving money on travel, health services, insurance, etc., through NARFE Perks 5. What’s one way NARFE could better serve YOU? __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________

Fill out this survey online at www.narfe.org/survey23

NARFE Member Survey: I want my voice heard! o Yes, I have completed the survey. I want my voice heard! o I realize that member dues do not cover all the work NARFE does to preserve my pay and benefits.

I have enclosed a donation to support NARFE’s legislative and advocacy efforts in the amount of $___________ .

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Signature __________________________ Date _________

Digging Into Your Service Record

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NARFE MAGAZINE APRIL 2023

NARFE has tips for checking your personnel files to ensure you receive all the retirement benefits you’re owed

BY DAVID TOBENKIN

A key financial benefit of federal service is a generous retirement. But if federal employees fail to ensure service records correctly reflect their federal employment, some of the benefits they are owed could be delayed or even denied.

What follows is a discussion of how to make sure your service record is correct and that the federal benefits for which you should be eligible do not slip through the cracks.

The Official Personnel Folder

Federal employees have a personnel folder that records their federal civilian service.

Your Official Personnel Folder is important for several reasons: • Documents contained in that folder determine whether and when federal employees are eligible for different forms of federal retirement benefits by detailing the amount of service credit based on work schedule (full-time, part-time, intermittent, when actually employed and leave without pay) and retirement coverage (Civil Service Retirement System (CSRS), Federal Employees Retirement System (FERS), CSRS Offset, FICA only). Failure to demonstrate a sufficient period of service can mean an employee is not eligible to receive an annuity in retirement.

• The service record determines the size of some of those benefits. Given federal annuities are calculated based upon length of service, for example, missing years or even months of federal service means a smaller monthly annuity payment. It is particularly important that the record for the last three years of service before retirement, or the highest-compensated three years of service, if they are not the last three, be accurate.

• Eligibility to carry high-quality, federally subsidized Federal Employees Health Benefits Plan (FEHBP) health benefits and Federal Employees Group Life Insurance (FEGLI) life insurance benefits into retirement is determined by the service record.

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Retirement Checklist OPM says you should check that your Official Personnel Folder (OPF) is correct by reviewing this information a year before you plan to leave federal service: • The beginning and ending dates for each period of employment, which will be used for your benefit computation • The effective dates for each promotion or within-grade increase during the period, which will be used to compute your high-3 average salary • The dates of pay changes or earnings and the pay rate, during employment periods when retirement deductions were not withheld from your salary • The tour-of-duty during any part-time employment (if you worked more hours than the official tour-of-duty, document the hours actually worked) • A record of time actually worked during intermittent or “when-actually-employed” service • Documentation of the dates of military service (if any service is not verified or any of the required documentation is missing, you should obtain assistance from your personnel officer) • Your Federal Employee Health Benefits and Federal Employees’ Group Life Insurance elections — David Tobenkin

“I recommend that employees maintain their own service history documentation as well as proof of their coverage under FEHB and FEGLI,” says Tammy Flanagan, principal and federal retirement benefits specialist at Retire Federal and a frequent presenter of NARFE Federal Benefits Institute webinars.

OPF SF-50 and eOPF

The OPF contains records of an individual’s federal employment career. OPM has transitioned federal agencies to use the eOPF, an electronic means of tracking a federal service record. The eOPF provides a record of an employee’s entire federal service record, including promotions and transfers.

OPM Form SF-50, Notification of Personnel Action, is the key document tracking the step-bystep progression of an employee’s federal service.

This important document contains a description of personnel actions that affect position or pay.

It lists the nature of employment, the grade and step of various forms of service, and the exact period of service at each agency. Ideally, employees should keep each SF-50 form that they receive in their records. It also contains their designation of beneficiary forms for FEGLI, Unpaid Compensation, and FERS (but not Thrift Savings Plan or CSRS) documentation. Information on receiving SF-50s from past employers is available through the Federal Records Center, http://www. archives.gov/frc/.

What to Look for

Ideally, a federal employee should be checking the facts on each SF-50 as he or she receives it and notifying their agency human resources staff immediately if they notice an error. Assemble the SF-50s and other work documentation in chronological order. Then go on eOPF and make sure the online version of your work records are in chronological order and complete and are consistent with the physical SF-50s, any other documentation and your memory of your service.

Make sure your eOPF indicates the right retirement plan: FERS, CSRS, CSRS Offset or a combination. Check the beginning and ending dates of service and make sure there are no gaps in service that reflect omission of service to which you are entitled. Check for promotions and increases in grade. Also check for spelling errors and the 34

NARFE MAGAZINE APRIL 2023

accuracy of your name, Social Security number, date of birth and veteran’s preference.

Also check the tenure (conditional or permanent) of employment. Career and career conditional service are credible, or count toward retirement. Many forms of non-permanent service are not creditable toward federal retirement, such as many forms of seasonal and temporary work. It is important to check if your form of service was correctly entered into your service record.

“I would recommend that they check Block 30 on the SF 50 to be sure they have retirement coverage under CSRS or FERS,” Flanagan says.

“Service that does not have retirement coverage that was performed after 1988 is not creditable under FERS. Non-covered service performed prior to 1989 must be paid for by making a service credit deposit. The rules are a little different under CSRS.” There are a host of special employment circumstances that may qualify as creditable service.

FERS retirees, see https://www.opm. gov/retirement-center/fers-information/ creditable-service/; CSRS retirees, see https://www.opm. gov/retirement-center/csrs-information/ creditable-service/.

Military veterans should check their DD214Certificate of Release or Discharge from Active Duty to establish period of military service, which also should be reflected in the eOPF. As a general rule, military service in the Armed Forces of the United States is creditable for retirement purposes if it was active service terminated under honorable conditions and performed prior to your separation from civilian service for retirement.

“Most individuals and employers want to see an Honorable Discharge indicated in line 24’s Character of Service in the DD 214,” Flanagan says.

For military service performed on or after January 1, 1957, a deposit must be paid to credit the service to establish title to an annuity or to compute an annuity prior to separation from service. For those paying for a deposit to recover service years, such as military veterans, the deposit form should indicate it, and the period of credited service should be reflected in the eOPF. Check for any periods of work when a deposit was not paid.

It is particularly important that the record for the last three years of service before retirement, or the highest-compensated three years of service, if they are not the last three, be accurate.

“This is a payroll document, and the payroll office is responsible for submitting proof to OPM,” Flanagan says. “I recommend that the employee maintain their own proof of payment of both civilian as well as military service deposits in the event that this is missing when the claim is being processed by OPM. For civilian deposits, the employee files a SF 2803 (CSRS) or SF 3108 (FERS) with their agency, but the ‘bill’ for the deposit comes from OPM as the agency forwards the application to OPM for processing. OPM maintains the record of civilian deposits. These are paid by personal check or through pay.gov.

“I instruct employees to maintain the communications and paid in full receipt from OPM in their personal records and recommend having a copy filed in their personnel file at work. Military deposits are processed by the payroll provider (DFAS, NFC, etc.) and there is a deposit application for this as well and the employee either makes payment via payroll deduction or personal check.”

If you have performed civilian service that was not covered by FERS retirement deductions prior to January 1, 1989, you may elect to make a service credit deposit for this time so that it will be credited for both eligibility and computation of your retirement. Unfortunately, for most civilian service performed after December 31, 1988, that was not subject to FERS retirement deductions, is not creditable and there is no option available at this time to make a service credit deposit.

However, Peace Corps, AmeriCorps or Vista volunteer service is creditable with a deposit.

Also relevant toward calculation of size of annuity benefits is unused sick leave, which should be checked periodically by reviewing an employee’s payroll records and one final time before departing federal service in the retirement documentation provided by their agency.

A vital component of a service record check is checking your record with HR personnel. Some of the rules for computing retirement eligibility and compensation, particularly for those without a straight record of service at a single agency,

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WEBINAR Preparing Retirement Forms: Costly Errors and How to Avoid Them Mistakes during your federal retirement process can cost you time and money. In some instances, they may even be irrevocable. In this 2022 webinar, NARFE federal benefits expert Tammy Flanagan focuses on the most commonly overlooked tasks when applying for retirement. She’ll help you clearly understand: • Which forms you need to prepare for retirement • What decisions you need to make (and which are irreversible) • The importance of carefully reading all instructions and questions • Common errors that could delay your retirement processing You’ll also learn which beneficiary forms you need to complete and how to update them when your life changes.

Whether you’re planning to retire or just thinking about it, this webinar will help you avoid regretting what you would’ve, could’ve, or should’ve done.

To see this and other NARFE Federal Benefits Institute webinars, visit www.narfe.org/webinararchive.

are complex; employees may not get it right. HR personnel should be able to verify your service record with you and point out any shortcomings in your federal record. OPM strongly recommends that employees meet with their agency benefits counselor, if possible, five years out from retirement to identify possible creditable military or civilian service, etc., and then again at one year, six months and 30 days prior to retirement to ensure everything is in order.

If you don’t know who to contact, find the benefits counselor for your agency using the Benefit Officer Listing. Your agency’s benefits counselor can help you find the office in your agency that has your employment records and can review your retirement coverage.

During preparations for retirement, federal agencies are charged with creating a Certified Summary of Federal Service,” Standard Form 2801-1 (CSRS) or 3701-1 (FERS) for the signature of federal employees. Federal employees should compare this to the eOPF file and reconstruct their own service record to ensure there are no disparities.

What to Do if There Is an Error

Federal employees should bring any inaccuracies in their eOPF record to the attention of their HR officer at their current agency. Federal agencies processing retirement applications are responsible for verifying any service not fully documented in an employee’s OPF. If documentation is missing, verification may be obtained by contacting federal record centers. If the personnel office is unable to obtain verification, OPM will complete verification upon receipt of your retirement application and records. However, this process will cause a delay in processing. Employees who point out an error to officials should follow up to make sure they have received documentation that their corrections have been made and, if employed, check that they are reflected in their eOPF. If the employee has retired, the error should be brought to the attention of OPM. Remember, waiting until soon before your retirement to check your Official Personnel Folder’s accuracy could lead to a delay in receiving correct retirement benefits.

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

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NARFE’s Dues Withholding Program What is dues withholding?

It is a dues-payment method available to retired NARFE members, their spouses and annuitant survivors giving them the option to have their annual NARFE membership dues deducted from their annuities each month.

Advantages • Save more than 10% off your annual NARFE dues • Sign up your spouse and double your savings • You’ll never get another dues reminder from us • Your monthly payment is affordable and convenient • You may cancel your dues withholding at any time

How does it work?

One-twelfth of your total dues is automatically deducted from your monthly annuity. Your monthly deduction is determined by the following formula: ($42 NARFE dues ÷ 12) + (Chapter dues - if applicable ÷ 12) = total monthly deduction How do I sign up?

Complete the Dues Withholding Application below. Send no payment. It may take 60 to 90 days before auto-deduction starts.

Your membership starts as soon as your application is received.

To learn more about dues withholding, call 800-456-8410.

NARFE Dues Withholding Application for NARFE Members who are Retirees, Spouses of Retirees or Annuitant Survivors STOP! Complete this section ONLY if you are signing up for Dues Withholding. If so, DO NOT send payment

o YES. I want to enroll in NARFE’s Dues Withholding Program. NARFE dues of $42* and chapter dues, if applicable, to be withheld annually. (*Dues-withholding members save more than 10% off the regular NARFE dues rate.)

Civil Service Annuity Number

Social Security Number (9-digit number)

–

C S

–

–

–

–

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

o Mr. o Mrs. o Miss o Ms.

NARFE MEMBERSHIP INFORMATION

Full Name ____________________________________

NARFE Membership ID _______________________________

Street Address ________________________________

NARFE Chapter Number ______________________________

Apt./Unit _____________________________________

o YES. I also authorize my (NARFE member) spouse’s dues to

City ________________________________________

be withheld from my annuity. (Additional annual dues of $42 and chapter dues, if applicable, to be withheld annually. If YES, enter spouse’s information below.)

State ___________ ZIP _________________________ Phone (__________) ___________________________ Email _______________________________________ Date of Birth _________ /_________ /__________________ mm

dd

yyyy

Spouse’s Name ____________________________________ _________________________________________________ Spouse’s Membership ID _____________________________ Spouse’s Email _____________________________________

AUTHORIZATION (Withholding will begin in 60-90 days). Send NO PAYMENT with Dues Withholding Application!

I authorize the United States Office of Personnel Management to make appropriate deductions from my annuity payments, not to exceed the amount certified by the National Active and Retired Federal Employees Association as the amount of dues for which I am annually obligated, in accordance with elections I made above, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I made. 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 Services, 606 N. Washington St., Alexandria, VA 22314-1914 800-456-8410

memberrecords@narfe.org

Do not send money with this form

(DW-2 01/21)

State Tax Treatment

FEDERAL ANNUITIES of

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NARFE MAGAZINE APRIL 2023

TAX YEAR

T

2022

he latest edition of the NARFE state tax roundup contains the most up-to-date information on your state’s tax situation. Use this guide to learn if there have been any changes to the way your state treats your federal annuity or retirement income as you prepare to file your 2022 taxes. The NARFE team combed through every state’s tax code to provide a comprehensive guide in the pages that follow, so give it a good, thorough read.

Thinking about a move? Use the information contained in the guide to help determine which locations would have the biggest tax advantages for your situation. And don’t forget to share the information with others so they don’t miss out on potential savings.

This roundup of state tax treatment of federal annuities and other tax information is presented for informational purposes only and does not constitute professional tax advice. NARFE has taken all reasonable efforts to ensure that the information contained in this roundup is accurate at the time of publication; however, NARFE cannot guarantee the completeness or accuracy of this information and is not responsible for any errors or omissions. Please consult a tax professional for advice in preparing tax returns.

A word about timing: NARFE members have asked, Why is this package published in April, right before taxes are due? The information in this guide is based on the tax filing instructions published by each state, the last of which were released in late January. Publishing this in April allows NARFE Magazine to incorporate legislative changes specific to the 2022 tax year, allowing readers to double-check their current returns, while also providing an overview of tax treatment for those who might move in the future.

tates With No Personal S Income Taxes ALASKA FLORIDA NEVADA NEW HAMPSHIRE1 SOUTH DAKOTA

TENNESSEE TEXAS WASHINGTON WYOMING

New Hampshire taxes interest/dividend income.

See p. 42.

1

States Exempting Total Amount of Civil Service Annuities* ALABAMA HAWAII ILLINOIS KANSAS LOUISIANA

MASSACHUSETTS MISSISSIPPI NEW YORK PENNSYLVANIA

KENTUCKY: Amount attributable to service prior to January 1, 1998, is exempt. See p. 41 for taxation of annuities attributable to service on or after January 1, 1998.

MICHIGAN: Full exemption only applicable to taxpayers born before 1946. See p. 41.

NORTH CAROLINA: Annuities not taxed if the individual had five years of federal government service as of August 12, 1989.

See p. 42.

* In addition, the five states listed below exempt certain federal civil service annuities from taxation. Some exemptions depend on the taxpayer’s age or dates of government service.

OKLAHOMA: CSRS annuities excluded from taxation. Taxpayers with annuities with both FERS and CSRS components may exclude the portion attributable to CSRS service. See p. 42.

OREGON: Annuities not taxed if the individual retired before October 1, 1991. Those who retired after October 1, 1991, are taxed only on that portion of the annuity attributable to federal government service after October 1, 1991. See p. 44.

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Other Exemptions ALABAMA: SS, federal retirement, military retirement and state pension income are exempt. Income from all defined-benefit pension plans is exempt. Income from distributions from accounts like IRAs and 401(k)s is partially taxable.

ARIZONA: SS is exempt. Income from benefits, annuities or pension as retired or retainer pay of the uniformed services is exempt. Up to $2,500 total of civil service and Arizona state and local government pensions are exempt per taxpayer.

Additional personal exemption for all residents age 65+.

ARKANSAS: SS and military retirement benefits are exempt. Up to $6,000 is exempt from public or private employment-related pension plan. Up to $6,000 in IRA distributions is exempt if the taxpayer is age 59.5+.

CALIFORNIA: SS is exempt.

All private, public and military pensions are taxed. Up to $1,695 may be exempt for taxpayers 65 and older who qualify for senior head of household credit.

COLORADO: SS income that is not taxed by the federal government is exempt. There is a $24,000 pension/ annuity exemption for all taxpayers age 65+, $20,000 pension/annuity exemption for all taxpayers between ages 55 and 64.

CONNECTICUT: SS and income from a pension or annuity is exempt if federal AGI is below $75,000 for those single or MFS and AGI of $100,000 or less if MFJ; taxpayers with AGIs equal to or above these 40

NARFE MAGAZINE APRIL 2023

thresholds qualify for a partial deduction. Military retirement pay is exempt.

DELAWARE: SS is exempt.

Taxpayers age 60+ may exclude $12,500 of investment and qualified pension income, as well as IRAs and 401(k)s, and qualify for an additional tax credit of $110. Taxpayers under age 60 may exclude $2,000.

Taxpayers age 65+ are entitled to an additional standard deduction of $2,500.

DISTRICT OF COLUMBIA: SS is exempt. For taxpayers age 62+, DC and federal government survivor benefits are exempt. Other retirement income is not exempt. State government and public pensions are partially taxed. For those born before Jan. 2, 1958, or are blind, standard deductions increase by $1,400 for MFJ/MFS/QW and $1,750 for S/HH.

Key to Abbreviations AGI=Adjusted Gross Income CSRS=Civil Service Retirement System FERS=Federal Employees Retirement System HH=Head of Household IRA=Individual Retirement Account MFJ=Married Filing Jointly MFS=Married Filing Separately QW=Qualified Widow(er) RR=Railroad Retirement* SS=Social Security *Federal law does not permit states to tax Railroad Retirement income. Exemption is not noted in roundup except where it affects provisions.

person age 65 and older, or $7,000 exemption for qualifying taxpayer who is blind, deaf or totally disabled.

GEORGIA: SS is exempt. Taxpayers age 62 to 64, or permanently and totally disabled regardless of age, may exclude $35,000 of retirement income. For taxpayers age 65+, the retirement income tax exclusion is $65,000. Retirement income includes income from pensions and annuities, interest income, dividend income, net income from rental property, capital gains income and income from royalties. Up to $4,000 of the maximum allowable exclusion may be earned income.

IDAHO: SS is exempt. Retirement benefits deduction available for CSRS annuitants who established CSRS eligibility prior to 1984 and are age 65+, or 62+ and disabled, in the amount of $40,140 (if single) or $60,210 (if MFJ) minus SS and RR received. Deduction includes workers under the Foreign Service Retirement and Disability System (FSRDS).

Retirement benefits deduction also available for military retirees. Persons using MFS status are not eligible for the retirement benefits deduction.

Extra standard deduction for persons age 65+.

HAWAII: SS is exempt. Federal retirement, military retirement, state or county retirement system pension income, and distributions from exclusively employer-funded pensions are exempt. Distributions from employer-funded pensions to which an employee also contributed may be fully or partially taxed. Additional personal exemption of $1,144 per

ILLINOIS: SS and income from any qualified employee benefit plan (including federal government plans) are exempt. Pension or retirement savings accounts like 401(k) plans, an IRA, or a traditional IRA that has been converted to a Roth IRA are exempt. Additional $1,000 personal exemption credit for those age 65 or older; an additional $1,000

TAX YEAR exemption is available for those who are blind.

INDIANA: SS is exempt. Taxpayers age 62+ (or surviving spouses) may deduct up to $16,000 from a federal civil service annuity minus the total amount of any SS or RR benefits.

For 2022 and later, the military retirement deduction is equal to the entire amount of military retirement income and/or survivor’s benefits.

Taxpayers can take a $1,000 personal exemption, while taxpayers age 65+ can take an additional personal exemption of $1,000. An additional personal exemption of $500 can be taken by a spouse age 65+ with a federal AGI that is less than $40,000 ($20,000 for MFS).

IOWA: SS and military retirement benefits are exempt. Taxpayers who are age 55+ or are disabled may exclude up to $6,000 (S, HH, QW) or $12,000 (MFJ or MFS) of pension or annuity income (including civil service annuities), self-employed retirement plan income, deferred compensation, IRA distribution or other retirement plan benefit income.

Additional $20 personal exemption credit for those age 65 or older; an additional $20 exemption is available for those who are blind.

KANSAS: SS is exempt if federal AGI is $75,000 or less. Federal, military and in-state/local pensions are exempt. For those age 65+ and/or blind, an additional deduction of up to $10,800 is available; amount is dependent on tax filing status and whether the resident and/or spouse is blind.

KENTUCKY: SS is exempt. Federal civilian and military retirement annuities attributable to service prior to Jan. 1, 1998, are excluded.

Annuities attributable to service

after Jan. 1, 1998, are included as pension income, of which taxpayers may exclude up to $31,110. An additional credit of $40 is available for each individual age 65 or older, and $40 for those who are blind.

LOUISIANA: SS is exempt. Federal retirement annuities are exempt.

In addition, persons age 65+ may exclude up to $6,000 of annual retirement income, including distributions from retirement accounts, if single, $12,000 if MFJ and both are receiving retirement income. If only one spouse has retirement income, the exclusion is limited to $6,000.

MAINE: SS and military retirement benefits, including survivor benefits are exempt. The taxpayer and spouse may each deduct $25,000 of eligible pension income, including federal civil service annuity income in the 2022 tax year; the deduction increases to $30,000 for the 2023 tax year and $35,000 for tax years 2024 and beyond.

MARYLAND: SS is exempt. If age 65+ or totally disabled, you may exclude up to $34,300 in pension income, under certain conditions.

Additional $1,000 exemption for residents who are blind or age 65+. If a dependent over 65 is claimed, you can also receive an extra exemption of up to $3,200 based on AGI. Military retirement subtraction up to $15,000 if 55 or older; $5,000 for those under age 55.

MASSACHUSETTS: SS, federal civil service and military pensions are exempt. Tax reciprocity with local/state governments that do not tax pension income from Massachusetts public employees.

Additional exemption of $700 for each individual age 65+. Additional

2022 exemption of $2,200 for each individual who is blind.

MICHIGAN: SS and military pensions are exempt. Other pension and retirement benefits are taxed differently depending on the age of the taxpayer: • Federal, state and local pensions are exempt for individuals born before 1946, as are private pension and retirement benefits up to $54,404 if filing single or MFS, or $108,808 if MFJ. • Taxpayers born 1946 through 1952 can take a standard deduction of $20,000 (S) or $40,000 (MFJ) against all income.

• Recipients born from January 1, 1953, through January 1, 1958, who receive retirement benefits from employment exempt from Social Security may deduct up to $15,000 in qualifying retirement and pension benefits, $30,000 if both receive the benefits exempt from SS. MINNESOTA: Certain types of military pensions or other military retirement pay may be subtracted from taxable income if included in your federal AGI. Additional standard deduction of $1,700 for residents who are blind or age 65 or older.

MISSISSIPPI: SS and retirement income from federal, state and private retirement systems are exempt, along with qualified retirement income.

Additional exemption of $1,500 for residents who are blind or age 65+.

MISSOURI: Military retirement income exempt. Taxpayers with AGI under $85,000 (single, HH, MFS, QW) or $100,000 (MFJ) may exempt federal, state or local pension income and the taxable portion of SS benefits. Taxpayers

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TAX YEAR with AGI exceeding the limitation may qualify for a partial exemption.

MONTANA: Additional exemptions if age 65+ and/or blind. Taxpayers age 65+ may exempt $800 ($1,600 if MFJ) of interest income reported in Montana AGI. You may exempt up to $4,640 of pension income per taxpayer; however, your exemption is reduced by $2 for every $1 your AGI exceeds $38,660. The instructions note that you are more likely to receive the full exemption if MFS. NEBRASKA: Beginning with the 2022 Nebraska income tax return, all military retirees are eligible to exclude 100% of military retirement benefits from Nebraska taxable income to the extent included in federal AGI. Other pension income is fully taxed. Federal AGI is reduced by a percentage of the SS benefits that are received and included in federal AGI. For tax year 2022, the percentage reduction is 20%. Taxpayers can claim either the percentage reduction enacted

by LB 64 or the previously existing exemption for low-income recipients, whichever is greater. Taxpayers with AGI less than or equal to $61,760 for MFJ or $45,790 for all other filing statuses may deduct 100 percent of SS income included in their federal AGI. NEW HAMPSHIRE: No tax on earned income. However, a 5 percent tax is applied only to interest and dividend income exceeding $2,400 ($4,800 for joint filers). Residents age 65 and older—as well as those of any age who are blind, and those under 65 who are disabled and unable to work—qualify for an additional $1,200 exemption for taxable dividends and interest.

NEW JERSEY: SS and military pensions are exempt. Taxpayers age 62 and older may exclude all 42

NARFE MAGAZINE APRIL 2023

or part of their taxable pensions, annuities and IRA withdrawals if their gross income for the entire year before subtracting any pension exclusion does not exceed $150,000.

The maximum amount excluded depends on filing status. For tax year 2022, MFJ can exclude up to $100,000; S, HH or QW can exclude up to $75,000; and MFS can exclude up to $50,000. Under certain conditions, additional amounts from retirement plans may be eligible for special exclusion if you (and your spouse if MFJ) will never be able to receive SS or railroad benefits because your employer did not participate in either program.

You can claim $6,000 if MFJ, or $3,000 if S/MFS. Additional $1,000 personal exemption for individuals age 65 and older or blind.

NEW MEXICO: SS is exempt for taxpayers with an AGI of $100,000 (S), $150,000 (MFJ) or $75,000 (MFS). For 2022, $10,000 of military retirement benefits is exempt, rising to $30,000 in 2024. Taxpayers age 65 and older with an AGI less than $28,500 (S), $51,000 (MFJ, HH, QW) or $25,500 (MFS) qualify for a deduction of $8,000. Taxpayers under 65 can claim an exemption of $2,500 if AGI is less than $36,667 (S), $55,000 (MFJ) or $27,500 (MFS).

If age 100+, all income exempt from state income tax if centenarian is single or spouse is also 100+ and no other dependents can be claimed.

NEW YORK: SS and state, local and federal pensions, including military and civil service, are exempt. An additional pension and annuity income exclusion of up to $20,000 is available to individuals age 59½ or older. Out-of-state government pensions can be deducted as part of a $20,000 exemption.

NORTH CAROLINA: SS is exempt.

2022 Under the Bailey Settlement (Bailey vs. North Carolina), federal retirement benefits and military benefits are exempt only for those who had five or more years of creditable service as of August 12, 1989.

NORTH DAKOTA: SS exempt.

Military retirement benefits are exempt. All other retirement income is fully taxed.

OHIO: SS and military pensions are exempt. General retirement income credit available starting at $25 if qualifying retirement income is at least $501; the credit tops out at $200 if qualifying retirement income is $8,001 or more. Residents age 65 and older are entitled to a $50 tax credit per return. Taxpayers who served in the military and receive a federal civil service retirement pension are eligible for a limited deduction if any portion of their federal retirement pay is based on credit for their military service. These retirees can deduct the percentage (in terms of years of service) of the amount of their federal retirement pay that is attributable to their military service.

OKLAHOMA: SS is exempt. Each individual may exclude 100 percent of retirement benefits received from CSRS, including survivor benefits, paid in lieu of SS to the extent that these benefits are included in the federal AGI. Retirement benefits paid under FERS do not qualify for this exclusion. However, for retirement benefits containing both a FERS and a CSRS component, the CSRS component will qualify for the exclusion. Individuals may exclude their FERS retirement benefits or other qualifying retirement income up to $10,000. Military retirement benefits are exempt. Additional personal exemption of $1,000 for age 65+ if federal AGI is $15,000 or less

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TAX YEAR (single), $25,000 or less (MFJ), $12,500 or less (MFS), or $19,000 or less (HH). Additional personal exemption of $1,000 for legally blind individuals.

OREGON: SS is exempt. Federal pension income of those individuals who retired before Oct. 1, 1991, are not taxed. Those who retired after Oct. 1, 1991, are taxed only on that portion of the annuity attributable to government service after Oct. 1, 1991. Taxpayers age 62 and older may qualify for retirement income credit if household income is below $22,500 (or $45,000 if MFJ).

Additional standard deduction if age 65+ of $1,200 (single, HH), $1,000 each spouse age 65+ (MFJ, MFS and QW). Additional exemption if blind or severely disabled.

PENNSYLVANIA: SS, federal civil service retirement benefits, military retirement benefits and employersponsored retirement plan benefits are exempt. Distributions from a 401(k) plan, IRA or Thrift Savings Plan are exempt for retirees 59½ and older.

RHODE ISLAND: SS is only exempt for MFJ with federal AGI of $119,750 or less; $95,800 or less for single taxpayers or MFS. Those born on or before September 1, 1956, may exempt up to $15,000 of qualified pension or retirement income if they have a federal AGI of $119,750 or less (MFJ), $95,800 or less (MFS), or $95,800 or less (single). For tax year 2023, the allowable exemption will increase to $20,000.

SOUTH CAROLINA: SS is exempt.

Those 65 or older may deduct $10,000 of qualified retirement income, while those under age 65 may deduct $3,000 of qualified retirement income (including federal retirement plans). All individuals age 44

NARFE MAGAZINE APRIL 2023

65 or older are entitled to a $15,000 (single) or $30,000 (MFJ) senior deduction from income, reduced by any deduction claimed for qualified retirement income. Beginning with tax year 2022, individuals may deduct all military retirement income included in their South Carolina taxable income.

UTAH: Taxpayers born on or before Dec. 31, 1952, may be entitled to a retirement credit of up to $450 ($900 MFJ). The credit is phased out at 2.5 cents per dollar of modified AGI over $16,000 (MFS), $25,000 (single) and $32,000 (MFJ, QW, HH).

VERMONT: SS only exempt for single filers making less than $45,000 a year ($60,000 MFJ); partially exempt with income up to $55,000 ($70,000 MFJ). With the exception of RR benefits, pensions and retirement income are fully taxed. Additional exemption of $1,000 for residents who are age 65 or older; additional $1,000 exemption if blind.

VIRGINIA: SS is exempt. Taxpayers age 65+ may claim an age deduction: Those born on or before Jan. 1, 1939, may claim an age deduction of

2022 $12,000. Those born between Jan. 2, 1939, and Jan. 1, 1958, will have the $12,000 deduction reduced by $1 for every $1 that federal AGI exceeds $50,000 (single) or $75,000 (MFJ, MFS). Additional personal exemption of $800 if age 65 or older; additional $800 exemption if blind.

WEST VIRGINIA: Residents can exempt $2,000 of civil and state pensions. Military retirement income and federal law enforcement income is exempt. Taxpayers age 65+ may exclude up to $8,000 (S) or $16,000 (MFJ) of remaining nonexempt income.

WISCONSIN: SS and military retirement benefits are exempt.

CSRS/FERS pay is exempt if the individual’s account was established prior to 1964 or if the individual is receiving payments from the system as a beneficiary of such an account. If age 65+, may exempt up to $5,000 of retirement income if federal AGI is less than $15,000 (S, HH) or $30,000 (MFJ or MFS).

Personal exemption of $700 and additional exemption of $250 if age 65 or older.

Webinar: Post-Retirement Tax Planning for Federal Employees You’re armed with information about tax treatment of federal annuities by various states for the 2022 tax year. Next, let NARFE help you as you incorporate tax planning into your overall financial strategy.

In this NARFE Federal Benefits Institute webinar recorded in 2022, Mark Keen, CFP®, discusses the nuances of the U.S. tax system and strategies federal retirees can use to maximize the after-tax value of their federal benefits.

This presentation will help you understand: •H ow federal benefits like CSRS/FERS Annuities, Social Security, and Thrift Savings Plan (TSP) withdrawals are taxed • TSP mandatory withholding rules and why that’s not your actual tax liability • Strategies to minimize taxes on TSP withdrawals • How RMDs can cost you more in taxes if you’re not careful • Costly stealth taxes from Medicare Part B and IRMAA Knowing how to maximize the after-tax value of your hard-earned savings can turn a good retirement into a great retirement!

To see this and other NARFE Federal Benefits Institute webinars, visit www.narfe.org/webinar-archive.

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Managing Money

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How SECURE 2.0 Will Affect Your Retirement Savings ine months after the House passed their version, much-anticipated retirement legislation, referred to as SECURE 2.0, was included in the $1.7 trillion omnibus

appropriations bill and signed into law by President Joseph R. Biden on December 23, 2022.

SECURE 2.0 builds on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 and features nearly 100 retirement provisions to boost savings, incentivize businesses and provide additional flexibility for those saving for retirement. This month’s column will focus on notable changes to two areas— required minimum distributions (RMDs) and catch-up contributions.

One anticipated change is the increase to the required minimum distribution (RMD) age. While SECURE 1.0 extended the RMD age from 70½ to 72, many in Congress felt the SECURE 1.0 didn’t increase RMD ages enough and advocated to increase the RMD age further. To that end, SECURE 2.0 increases the RMD age to 73 beginning in 2023 and then increases the RMD age again in 2033 to 75.

Interestingly, no one will have to start RMDs in 2023 or 2033 because of their age. Someone turning 73 in 2023 will have started RMDs in 2022 when they turned 72 and someone turning 75 in 2033 would have been required to start RMDs in 2031 when they turned 73.

Beginning in 2023, SECURE 2.0 also reduces the hefty penalty

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NARFE MAGAZINE APRIL 2023

SECURE 2.0 BUILDS ON THE SETTING EVERY COMMUNITY UP FOR RETIREMENT ENHANCEMENT ACT OF 2019 AND FEATURES NEARLY 100 RETIREMENT PROVISIONS TO BOOST SAVINGS, INCENTIVIZE BUSINESSES AND PROVIDE ADDITIONAL FLEXIBILITY FOR THOSE SAVING FOR RETIREMENT.

for failing to take an RMD from 50% of the RMD amount down to 25%. Furthermore, if a missed RMD from an IRA is corrected in a timely manner, the penalty drops to 10%.

Any relief due to the reduced penalty may prove to be an illusion, however. This is because the IRS hasn’t historically applied the 50% penalty very often. If a taxpayer corrected a missed RMD in a timely manner and then

asked for forgiveness (requested a penalty waiver), the IRS was prone to grant the request. Now that the penalties have been reduced, the IRS may take a more hard-line stance and apply the penalty with more frequency.

Time will tell.

While Roth IRAs are not subject to RMDs during the owner’s lifetime, Roth accounts in employer-based retirement plans, such as a 401(k), 403(b) or TSP, are. In order to avoid taking an RMD based on the Roth account, many retirement plan participants would simply transfer the Roth account from the employer-based retirement plan to a Roth IRA. Thanks to SECURE 2.0, that workaround will no longer be necessary, as SECURE 2.0 eliminates RMD requirements for Roth accounts in employerbased retirement plans beginning in 2024. While there will still be valid reasons for transferring a Roth account in an employer plan to a Roth IRA, avoiding an RMD will no longer be one of them.

The bill also includes a few noteworthy changes to catch-up contributions, those contributions allowing investors age 50 or older to save more in their employerbased retirement plans and IRAs. Prior to Secure 2.0, the IRA catch-up contribution ($1,000 in 2023) was the only contribution limit not automatically indexed to inflation. Thanks to SECURE 2.0, starting in 2024, the $1,000 IRA catch-up contribution will be indexed for inflation in $100 increments.

BENEFITS RESOURCES NARFE OFFERS MEMBERS a wide range of information on federal benefits. Visit www.narfe.org/federal-benefits-institute.

Additionally, beginning in 2025, participants in 401(k)-type retirement plans, including the TSP, who are 60 to 63 years old may contribute the greater of $10,000 (indexed for inflation beginning 2026), or 150% of the regular catch-up amount.

For example, the 2023 catch-up contribution to a 401(k)-type retirement plan is $7,500, which means participants age 60 to 63 would be able to make a catch-up contribution of $11,250 if the rule took effect this year.

Not all of SECURE 2.0’s retirement provisions are welcome changes. Beginning in 2024, SECURE 2.0 will require high wage earners (those making greater than $145,000) to direct their catch-up contributions

to the Roth account of their employer’s retirement plan. This change may result in a higher tax burden on those contributions if the participant’s tax rate is lower at the time those funds are distributed than the tax rate when those contributions were made.

MARK A. KEEN, CFP®, PARTNER, KEEN & POCOCK. SECURITIES OFFERED THROUGH THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA), MEMBER FINRA/SIPC. ADVISORY SERVICES OFFERED THROUGH STRATEGIC BLUEPRINT LLC AND SFA. MARK KEEN IS A REGISTERED PRINCIPAL OF SFA AND AN INVESTMENT ADVISER REPRESENTATIVE OF SFA AND STRATEGIC BLUEPRINT, LLC. SFA AND STRATEGIC BLUEPRINT ARE AFFILIATED THROUGH COMMON OWNERSHIP BUT OTHERWISE UNAFFILIATED WITH KEEN & POCOCK. NEITHER STRATEGIC BLUEPRINT NOR SFA PROVIDE TAX OR LEGAL ADVICE.

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Are You Taking Advantage of All Your NARFE Member Resources?

I

n a recent survey of a segment of the NARFE membership, respondents listed “to get the most out of my federal benefits” as the No. 1 reason they joined NARFE. They also rated NARFE

Magazine as the most valuable NARFE member benefit, followed closely by federal benefits articles and webinars. Of course, you’re reading your magazine now, but what if you need the important information from this issue (or a previous one) a few months from now and your magazine has long since been recycled?

Not to worry! Just log in at NARFE.org and visit www.narfe.org/ magazine-issues/ to access the archive containing digital versions of every issue published for the last 13 years.

And while you’re there, pop over to www.narfe.org/federalbenefits-institute, where you’ll find links to dozens of valuable webinars presented by leading federal benefits experts that you can watch on demand, anytime, anywhere. Between the vital information contained in the articles and the expert advice from the webinars, you’ll learn to enhance your federal benefits savings plans and prepare for a secure future with educational webinars that help you save money as you take charge of your federal benefits.

Join the conversation on FEDHub, the only online community where active and retired Feds connect to share ideas, information and solutions. NARFE launched FEDHub in November 2021

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NARFE MAGAZINE APRIL 2023

to support your success by bringing you the knowledge and value of our entire community. At present, there are more than 70 active public communities on FEDHub, including an Open Forum where members can start or respond to discussions in any topic area, targeted communities covering topics such as advocacy, Social Security and retirement, and 54 federation communities.

Visit fedhub.narfe.org to join the conversation and start making real connections today.

FEDHub can be accessed by using your NARFE Member Portal login credentials.

Members can save money on everyday purchases thanks to our NARFE Perks partners.

Take advantage of discounts

NARFE Magazine is the best source for the news and information affecting active and retired Feds. Members can find every issue online at www. narfe.org/magazine-issues.

on travel, health services, insurance and more! To find out more details about your exclusive discounts from nearly 30 partners, just go to www. narfe.org/narfe-perks-formembers and start saving today.

In addition to taking advantage of our most popular member benefits, are you staying current on the latest federal benefits news that affects you? You are if you’re receiving NARFE NewsLine in your email inbox every Tuesday. NewsLine is NARFE’s weekly e-newsletter with advocacy and federal benefits updates, information about association activities and other relevant news items.

NARFE’s Daily News Clips features breaking news and informative articles from various outlets curated just for NARFE members, as well as NARFE media statements, op-eds and more.

If you are not receiving NewsLine or Daily News Clips, visit www.narfe.org/ communications/enewsletter to update your email subscription preferences. Let NARFE keep you informed and help you get more out of all of your federal benefits—because it pays to be a NARFE member.

—BY MARISSA ESGUERRA, CAE, MANAGER, MEMBERSHIP DEVELOPMENT

2023 CONFERENCES & EVENTS Information as of February 1: REGION X: September 12-14, Frankfort, KY; email Robert Allen, rvp10@narfe.org, for more information.

ALABAMA: April 11, Holiday Inn Express, Prattville; contact Rafael Brathwaite, rafaelbrathwaite@gmail.com, for more information.

ALASKA: September 23, virtual; email Paul McIntosh, mcintoshpaul10@gmail.com, for more information; https://us02web.zoom.us/j/88666139423, passcode SDNCV0xROW1RRk96RytVTkwwZ2l4QT09.

CALIFORNIA: May 8-10, Embassy Suites by Hilton, 333 Madonna Road, San Luis Obispo; email Gerald Hall, fritz1313@hotmail.com, Ronald Griffin, rsdgriffin@ sbcglobal.net, or Patricia Smith, sbsmith93561@yahoo. com, or visit www.csfcnarfe.org for more information.

COLORADO: May 25, DoubleTree Hilton Aurora, 13696 E. Iliff Place, Aurora; email Frank Impinna, impinna@gmail. com, or visit http://www.narfe-colorado.com for more information.

DISTRICT OF COLUMBIA: May 4; contact Jacquelyn Lowe, jalkiwanis@aol.com, for more information.

FLORIDA: October 12-14; contact Evelyn J. Seabrook, brooklyn_seav48@hotmail.com, for more information.

GEORGIA: June 6, Courtyard by Marriott, 589 Carl Vinson Parkway, Warner Robins; federation election May 1-26; email Nancy Wall, njwall1992@gmail.com, or visit http://ganarfe.org for more information.

HAWAII: April 20, Japanese Cultural Center, 2454 S. Beretania St., Honolulu; email John Priolo, prioloj001@ hawaii.rr.com, for more information.

ILLINOIS: September 26-28, 1202 N. Keller Drive, Thelma Keller Convention Center, Effingham; federal election and business meeting September 28 during conference; email Linda J. Glasgow, glasgowljg43@aol.com, or visit http://www.narfe.net.site/il/ for more information.

INDIANA: April 27-28, Ft. Benjamin Harrison Inn, Roosevelt Room, 5380 N. Post Road, Indianapolis; visit https://www.narfe.net/site/in/ for more information.

KANSAS: April 24-25, Topeka; federation election online March 1 to April 7; email John F. Ourada, john.ourada@ cox.net, or visit https://www.narfe.org/site/ks/ for more information.

MINNESOTA: May 16-17, Willmar Conference Center, Willmar. Visit www.narfe.net/site/mn or call/text 8-digit NARFE ID number to 320-444-9615 for more information and officer election ballot.

MISSISSIPPI: April 13-15, Lake Tiak-O’Khata Resort, 1290 Smyth Lake Road, Louisville; contact Rhett Hamiter, katrdh90@currently.com, for more information.

MISSOURI: April 27; contact Emerson A Kretzer IV, eakiv@ yahoo.com, for more information.

MONTANA: September 11; email Leland “Wally” Walbruch, walbruchsofmt@centurylink.net, for more information and to register.

NEBRASKA: May 11, Grand Island; contact Harold L Klaege, hlklaege@gmail.com, for more information.

NEW JERSEY: April 26, Lakeside Manor, 410 Highway 36, Hazlet; email John Szpyhulsky, ukijs@aol.com, or visit http://www.narfe.org/site/NJ for more information.

NEW MEXICO: April 28-29, First Presbyterian Church, 208 Grant Ave., Santa Fe; email Mark Mickelsen, mmickelsen@ aol.com, or visit http://www.narfe-nm.net for more information.

NEW YORK: May 10; email Dennis Gawron, dennisamherst@gmail.com, for more information.

NORTH CAROLINA: May 10, virtual; email Thomas E. “Tom” Link, link.thom@gmail.com, or visit http://ncnarfe.org for more information and to register.

OHIO: April 22, Der Dutchman Restaurant, 720 State Route 97 W., Bellville; email Diana Diller, ladyde1006@ gmail.com, or Tim Gartner, narfetim48@gmail.com, or visit http://www.narfe.org/site/OH for more information.

OKLAHOMA: April 28-29, Canadian Valley Technology Center, 6505 US Route 66, El Reno; email Jerry or Wanda Walker, jerrywwalker@cox.net, or James Gillispie, PMGillispie2@cox.net, for more information.

OREGON: May 14-16, Best Western Plus Agate Beach Inn, 3019 N. Coast Highway, Newport, and Federation Election April 1 to May 7 (ballots will be available for download in the Oregon Federation FEDHub community); email Ruthann Couch, couchruthanngene@centurylink. net, or Colleen Hewes, hewcol@gmail.com, for more information.

TENNESSEE: April 17, Ramada Inn, 704 S. Cumberland Ave, Lebanon; contact Karen Kopp-Voshel, kykopp@apex. net, for more information.

LOUISIANA: April 11-13, Courtyard by Marriott, 1309 Maxwell Blvd., Ruston; email Cynthia Quintanilla, NARFE41@aol.com, or visit https://www.narfe.net/site/la/ for more information.

TEXAS: April 24-26, Hampton Inn & Suites Waco South, 2501 Marketplace Drive, Waco; email Robert Bradford, texasbob49@gmail.com, or visit http://www.narfe.org/site/ tx for more information.

MASSACHUSETTS: May 15, 5 Old Planters Road, Beverly; contact Robert L. Pierce, robert.piercejr@ comcast.net, for more information.

VIRGINIA: April 2-5, Embassy Suites Hotel and Convention Center, 1700 Coliseum Drive, Hampton; visit https:// vanarfe.org/conference2023/ for more information.

MICHIGAN: May 24-26, Doherty Hotel, 604 N. McEwan St., Clare; email Sallye McGill, mcgill-s@sbcglobal.net, or visit https://www.narfe.net/site/mi/ for more information.

WISCONSIN: November 6; contact Melanie Miller, melanie. miller@wisc.edu, for more information.

NARFE MAGAZINE www.NARFE.org

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USE YOUR NARFE PERKS AND YOUR MEMBERSHIP WILL MORE THAN PAY FOR ITSELF!

PRODUCTS...........................................................................................................................................

ADT Home Security | 844-892-3513 | https://Partners.ADT.com/SSE-P1

Get your ADT-monitored home security system today for $28.99 a month with AND $100 Visa reward card from Protect Your Home ADT Authorized Premier Provider. *New customers only. Visit website for full details of offer.

GE Appliances Store | Use the link below to start shopping!

Save with NARFE members-only access to the GE Appliances Store! You will enjoy up to 25% off MSRP every day on the latest in high-quality appliances. *Orders can not be shipped to P.O. boxes, APOS, Canada, Puerto Rico, HI, AK or U.S. Territories. https://www.myapstore.com/GEStore/Appliances/ Registration?AuthCode=MONARFE21

LegalShield | 410-419-7130 | Shieldbenefits.com/narfe

Whether it’s big, small or somewhere in between, you have affordable legal help when you need it. Members receive the discounted rate of $18.95 for families of 10 (two adults and up to 8 children) when you sign up through the website above.

ODP Business Solutions | 1-800-650-1222 | www.officediscounts.org/narfe

(Previously Office Depot/Office Max)

Because you’re a member of NARFE, you now have access to exclusive members only discounts at ODP Business Solutions (previously Office Depot/Office Max). Members save up to 75% off on ODP Business Solutions Best Value list of preferred products and can take advantage of products discounted off the officedepot.com regular prices. Restrictions may apply so visit officediscounts. org/narfe for details. Product and service discounts may no longer be available for in-store purchases.

Purchasing Power | NARFE.purchasingpower.com

While not a discount program, Purchasing Power is an exclusive purchase program helps members buy brand-name computers, electronics, appliances and furniture via annuity allotment when cash is not an option. No credit check or down payments.

INSURANCE..........................................................................................................................................

AMBA

NARFE Insurance Services | 800-233-5764 | www.narfeinsurance.com

Designed exclusively for NARFE members, (plans administered by Mercer) Senior Age Whole Life Insurance, Senior Term Life Insurance, Hospital Income and Short Term Recovery Insurance, Dental Insurance, Vision Insurance, AssistPlus, Discount Prescription Plan and Pet Insurance.

Member Options | 833-378-8224 | https://www.member-options.com/narfe

Member Options Auto and Home Insurance Program - Save Money with Multiple Quotes! Get quotes from top-rated insurance carriers on Auto, Home, Renters, Pet insurance and more in a matter of minutes.

Answer a few simple questions online or over the phone with our licensed insurance experts to compare multiple options that meet your specific needs. To review and choose what’s best for you, go to the link above or call 833-378-8224.

PRE-PLANNING...................................................................................................................................

Neptune Society | 800-NEPTUNE (637-8863) | www.neptunesociety.com

Our prearranged plans cover all necessary expenses for one guaranteed price even if the services are not needed for 40 or 50 years. The Neptune Society offers a $100 discount to all NARFE members. *Discounted offer is not valid for residents of Louisiana, Tennessee and Kentucky. Void Where Prohibited.

MOVING SERVICES..................................................................................................................................

Coleman Allied | 850-375-0917 | jack.jacobs@colemanallied.com

With over 300 agency partners and an entire team dedicated to a quality move experience, Coleman Allied provides customized discount levels for all NARFE members for Interstate moves. *The NARFE pricing only applies to moves that leave the state you currently reside in.

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

At Wheaton, we know interstate relocation is much more than trucks and boxes. With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation.

TRAVEL, TRANSPORT & ENTERTAINMENT...................................................................................

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

With 6,400 hotels throughout the world, Choice Hotels offers something for everyone. As a member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967.

Collette Travel | 844-311-6563 | www.gocollette.com

With over 160 tours to all 7 continents and travel styles varying from small group to river cruising, Collette offers something for everyone. As a NARFE member, you receive an additional $50-$100 off all tours including sales and offers! Just use your member benefit code NARFESAVE or let our reservation agent know you are a NARFE Member when booking.

Enterprise Rent-A-Car® | Book Now! | https://partners.rentalcar.com/narfe

When you’re ready to go, Enterprise Rent-A-Car makes it easy. We offer everyday low rates on a great selection of cars, trucks and vans and customers are picked up at no extra cost*. See website for exclusions.

Hotel Engine | https://members.hotelengine.com/join/narfe175

Hotel Engine, a private booking platform, connects organizations and their members to deeply discounted hotel rates.

Member Deals | https://memberdeals.com/narfe/?login=1

MemberDeals is your one stop for great discounts on nationwide travel and entertainment! Find exclusive discounts, special offers, preferred seating, and tickets to top attractions, theme parks, shows, sporting events, hotels, and much more. Visit MemberDeals and find savings such as up to 40% on top theme parks nationwide and preferred access tickets to your favorite concerts, sports & more!

National Car Rental® | 800-CAR-RENT | www.nationalcarrental.com

NARFE members receive great rates with National Car Rental! At National, we pride ourselves on always providing you with unsurpassed convenience and choice. https://partners.rentalcar.com/narfe

WELLNESS....................................................................................................................................................

Brookdale Senior Living Communities | 877-713-2762 | www.brookdale.com/narfe

As the largest operator of senior living communities in the US, Brookdale has over 1,000 locations all across the country. Members are eligible for 7.5% discount at Brookdale Independent Living, Assisted Living and Memory Care communities and 10% discounts on Brookdale Private Duty Home Care.

Discounts are for new move-ins/customers only.

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

Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-of-the-art ultrasound technology in your neighborhood.

Operator code BKHN075.

ADDITIONAL PERKS................................................................................................................................

SEE HOW MUCH YOU CAN SAVE AT

www.NARFE.ORG/memberperks

The Way We Worked

Staying Connected Capitol Hill staffers Esther Ebert, left, and Ethel Bern update a weather map in the House of Representatives Speaker’s Lobby, immediately off the House Floor, in 1947. With a glance at the enormous board, lawmakers could see the weather in their districts.

Other services offered to lawmakers included sandwiches and coffee from the lunch counters in the cloakrooms— also located just off the House Floor—as well as daily newspapers from throughout the country, to help them keep up with the news back home.

PHOTO from the Collection of the U.S. House of Representatives, courtesy of the Clerk of the House’s Office of Art and Archives, 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 www.shfg.org.

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NARFE MAGAZINE APRIL 2023

DID YOU KNOW? The House Restaurant has been operating since 1858, when Speaker James Orr directed that the House use rooms H-117-120 to offer “wholesome refreshments.”

Learn more at https://history. house.gov//

5 Great Reasons

Why Oticon MoreTM could be the answer to your hearing problems.

1 Oticon More with Brain HearingTM technology

A revolutionary hearing aid that gives the brain more of the relevant information it needs to make better sense of sound. So you can get better speech understanding with less effort and the ability to remember more.

2

3

Connectivity made easy

Never change a battery again

Simple, wireless connectivity to your favorite devices via Bluetooth®. Make hands-free calls, stream music, connect to smart devices and more!

A trouble-free rechargeable solution allows you to recharge at night for a full day of hearing. FREE charger included!1

4

5

The hearing aid with built-in intelligence

Take advantage of your $2500 benefit

Works more like how the brain works because it learned through experience. Clinical studies prove Oticon More delivers 30% more sound to the brain and increases speech understanding.2

Exclusive pricing for NARFE members. Your insurance may cover all or part of the cost. Call for more information.3

This special offer for federal employees and retirees is available only at Your Hearing Network locations. To find your location call

877-696-5335

Lithium-ion battery performance varies depending on hearing loss, lifestyle and streaming behavior. 2Compared to Oticon Opn STM, Santurette, et al. 2020. Oticon More clinical evidence. Oticon Whitepaper. 3Your out-of-pocket costs may vary depending on plan benefits, eligibility, deductible, co-insurance, and model of device chosen.

This is not a guarantee of coverage or payment. Benefit is not available through all insurance plans. Please call us to verify your coverage.

1

Members, Pay $0 out-of-pocket!

Blue Cross and Blue Shield Service Benefit Plan members may be eligible for two fully covered hearing aids with zero out-of-pocket cost on many models when applying your hearing aid benefit*. HearUSA offers all these features and follows all safety protocols for our customers and employees. Call 1-855-252-0025 to discover more or visit www.blue365deals.com/fep.

EXPERIENCE - HearUSA has been changing lives through better hearing since 1987 and a proud NARFE Circle Sponsor since 2016.

CHOICE - All major hearing aid brands and styles available, including completely-in-the-canal, the smallest custom hearing aids on the market.

Three-year manufacturer’s warranty covers repairs Three-year loss and damage coverage provides peace of mind One-year of FREE batteries eliminates an extra expense One year of FREE in-office service will get you off to a great start!

TECHNOLOGY - Smart technology helps you hear more clearly and eliminates annoying feedback “whistling”.

RECHARGABLE - Most models have rechargeable options; no need to ever replace batteries! Plus, many models connect with your cell phone!

TELEHEALTH - Take advantage of HearUSA Telehealth Services where you obtain quality care at home.

Telehealth appointments are available.

Book a Complimentary Hearing Evaluation Today.

855-252-0025 HearUSA.com

*The Service Benefit Plan will pay a hearing aid benefit for Standard and Basic Option up to $2,500 total every 5 calendar years for adults age 22 and over, and up to $2,500 total per calendar year for members up to age 22.

FEP Blue Focus does not have a hearing aid benefit.

Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in the Blue Cross and Blue Shield Service Benefit Plan brochure. Blue365® offers access to savings on health and wellness products and services that members may purchase from independent vendors, which are not covered benefits under the Blue Cross and Blue Shield Federal Employee Program, Blue Cross Blue Shield FEP Dental and/or Blue Cross Blue Shield FEP Vision. These products and services will be offered to you through the entire benefit year.

During the year, the independent vendors may offer additional discounts on these products and services. To find out what is covered under your policy, contact the customer service number on your member ID card. Any disputes regarding your health insurance products and services may be subject to your plan’s grievance process. BCBSA may receive payments from vendors providing products and services on or accessible through the Site.

Neither BCBSA nor any Blue Company recommends, endorses, warrants, or guarantees any specific vendor, product or service available under or through the Blue365 Program or Site.