May 2024 NARFE Magazine

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

May 2024 VOLUME 100 ★ NUMBER 4

P. 26 Challenges Facing the Senior Executive Service

P. 34 Retirement Planning Under FERS

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Contents MAY 2024

COVER STORY PAGE 26

FEATURE PAGE 34

CHALLENGES FACING THE SENIOR EXECUTIVE SERVICE As the executive manager of the federal government’s senior leaders, how has this corps of trained professionals met the changing trends of today?

RETIREMENT PLANNING UNDER FERS To determine if you can retire, what factors must a Federal Employees Retirement System worker consider?

Washington Watch

Columns

8 Navigating the Fiscal Horizon:

4 From the President

The Implications of the Proposed Fiscal Commission

9 Committee Advances Bill Targeting Drug Benefit Practices

10 How NARFE’s Action Letters Transform Grassroots Advocacy Into Legislative Impact

11 Bill Introduced to Extend

Identity Theft Protection in OPM Breach

12 Annual “Call” Letter Previews 2025 Health Benefit Changes

14 Bill Tracker

24 Benefits Brief

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

May 2024 VOLUME 100 ★ NUMBER 4

P. 26 Challenges Facing the Senior Executive Service

44 Managing Money 46 Alzheimer’s Update

P. 34 Retirement Planning Under FERS

Departments

6 NARFE Online

ON THE COVER Illustration by TGD

20 Questions & Answers 21 Countdown to COLA 46 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

Follow us on LinkedIn NARFE

NARFE MAGAZINE www.NARFE.org

1

MAY 2024 VOLUME 100 ★ NUMBER 4

REGIONAL VICE PRESIDENTS

EDITORIAL DIRECTOR Jenn Rafael

REGION I Jeff Anliker

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

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.

NATIONAL OFFICERS WILLIAM SHACKELFORD President; natpres@narfe.org KATHRYN E. HENSLEY Secretary/Treasurer; natsectreas@narfe.org

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 © 2024, 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 MAY 2024

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.

Be a Part of the Future of NARFE

I

n my January column, I urged you to become part of the national decisionmaking process. Following the closing

of the 2024 NARFE National Conference (FEDcon24), you will be asked to vote on national bylaws amendments.

Additionally, you will also be deciding who will lead our organization for the next two years by electing members of your National Executive Board.

In accordance with NARFE National Bylaws, the National Secretary/Treasurer and three Regional Vice Presidents (Regions IV, V, and VI) are ineligible to be re-elected. As your National President, I am eligible to seek a second two-year term, and the other seven RVPs are eligible to seek re-election.

At press time for this issue (February 2024), interested individuals were still preparing their declaration of intent to seek a national office.

“Candidate statements” will be printed in the June/ July issue of NARFE Magazine. While the content is brief, the statements will give you a thumbnail sketch of each candidate and provide you with an idea of their understanding of NARFE and the duties of the office for which they seek your vote.

These statements will also be posted on the NARFE website at www.narfe.org. As a loyal and dedicated NARFE member, your “homework” assignment is to review these statements, learn who these people are and what their visions are for NARFE. Please become an “educated elector,” and when it comes time to vote, cast a vote for the person who best meets your criteria for a NARFE officer.

as federal, state, county, and local government employees, the Partnership for Public Service has announced that PSRW will be observed during the week of May 5-11 in Washington, D.C., as well as in communities across the nation. We are proud of the work active federal employees do today for our nation and at NARFE, and we celebrate the service of federal employees every day. Unfortunately, despite the efforts of NARFE, community leaders, award ceremonies and events during this special week, in our current political environment members of the public still fail to fully comprehend the impact of the work performed by the federal community.

Active federal employees control functions associated with national defense, homeland security and law enforcement, health and education services, air safety, mail processing, and many others. Many federal retirees are volunteering in many ways locally in their communities. I want to extend my thanks to all active federal employees, retirees and your spouses for your many years of dedicated federal service.

FEDCON24

Preparation continues at NARFE headquarters for the 2024 National Conference in St. Louis.

We’ll be at the Hyatt Regency at the Arch. Events begin on August 18 with the NARFE Annual Meeting, during which attendees will receive reports from your national officers and the NARFE chief of staff. In addition, Dr. Joanne Pike, president and CEO of the Alzheimer’s Association, will provide an update on the relationship between NARFE and the association.

PUBLIC SERVICE RECOGNITION WEEK (PSRW) Organized annually by the Public Employees Roundtable and its member organizations to honor the men and women who serve our nation 4

NARFE MAGAZINE MAY 2024

WILLIAM SHACKELFORD NARFE NATIONAL PRESIDENT natpres@narfe.org

CONTROL WHAT YOU CAN. INSURE WHAT YOU CAN’T. You can control many things in your life — diet, exercise, even on-demand TV — but life has its own plans.

A serious accident or illness can happen at anytime.

The high cost of a hospital stay, and the expense of home recovery afterward can take a serious toll on your personal and retirement savings.

NARFE Hospital Indemnity and Short Term Recovery Insurance Plan This plan can help you manage how life’s surprises affect what you’ve worked so hard for. It pays cash benefits directly to you, to use the money as you see fit. Use the cash benefits to stay more in control of your health care choices, maintain your self reliance, and receive the level of care you’ve earned and deserve.

Benefits include: Guaranteed Acceptance to NARFE Members and Spouses Age 65–99.*

• In-Hospital cash benefits paid to you starting the first day you’re hospitalized for a covered injury or illness.

• At-Home cash benefits paid to you after your physician prescribes home recovery treatments.

• Cash benefits paid in addition to any other coverage you may have.

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

• Economical group rates specifically negotiated by NARFE for our members.

To learn more or enroll in the NARFE Hospital Indemnity and Short Term Recovery Insurance Plan, call 1-800-233-5764 or visit us at www.narfeinsurance.com *This policy is guaranteed acceptance, but it does contain a Pre-Existing Conditions Limitation. All benefits are subject to the terms and conditions of the policy. Policies underwritten by Hartford Life and Accident Insurance Company detail exclusions, limitations, reduction of benefits and terms under which the policies may be continued in full or discontinued.

Plans may vary by state.

The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries, including underwriting company Hartford Life and Accident Insurance Company under the brand name, The Hartford®, and is headquartered at One Hartford Plaza, Hartford, CT 06155. For additional details, please read The Hartford’s legal notice at www.thehartford.com.

Hospital Indemnity Form Series includes GBD-2800, GBD-2900 or state equivalent.

Program Offered by Association Member Benefits Advisors, LLC (AMBA).

In CA d/b/a Association Member Benefits & Insurance Agency CA Insurance License #0I96562 • AR Insurance License #100114462

102959 (5/24), 103240 (10/24) Copyright 2024 AMBA. All rights reserved.

NARFE Online TRACKING RETIREMENT CLAIMS FIND OUT how many retirement claims OPM Retirement Services receives and processes each month, with average processing times and total inventory, a www.narfe.org/ opm-processing.

Stay Informed With News That Matters to You

W

ant 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 media outlets curated just for NARFE members, as well as NARFE media statements,

op-eds and more. NARFE Daily News Clips is delivered to inboxes weekday mornings.

To join the mailing list, visit www.narfe.org/clips.

SHARE NARFE MAGAZINE Interested in sharing NARFE Magazine with a friend to show them the value of membership? Request a digital download at www. narfe.org/communications/ narfe-magazine/.

TSP UPDATED ONLINE MISS A WEBINAR? Catch up on past NARFE Federal Benefit Institute presentations in NARFE’s webinar archive. Find them at www.narfe.org/webinar-archive.

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.

6

NARFE MAGAZINE MAY 2024

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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Washington Watch Washington Watch

Navigating the Fiscal Horizon: The Implications of a Proposed Fiscal Commission

T

he House Budget Committee in January voted to advance a bill promoting a study of strategies to reduce deficits, with the potential for supporting cuts to federal

earned benefits.

H.R. 5779, the Fiscal Commission Act of 2023, was advanced in January. The bill would establish a fiscal commission to propose benefit cuts and other policies to help reduce federal deficits, and set them up for fast-track consideration in Congress. At press time, some lawmakers were pushing to include the language of the bill in larger government funding legislation.

NARFE has opposed the House bill, and its Senate counterpart, S. 3262, due to its potential to profoundly impact earned federal benefits, with NARFE National President William “Bill” Shackelford urging members of Congress to oppose the bill and its inclusion in government funding legislation. The potential commission aims to evaluate and recommend measures to address the nation’s fiscal health, but its approach raises significant questions about the future of 8

NARFE MAGAZINE MAY 2024

federal retirement, Social Security and Medicare benefits.

At its core, the concept of a fiscal commission is not without merit. Such bodies are often convened with the noble aim of addressing the pressing concerns of national debt and deficits, seeking sustainable solutions to ensure the economic stability of future generations. However, NARFE’s apprehension lies

in the commission’s method of operation. By potentially bypassing the standard, deliberative committee process, this commission would delegate considerable congressional powers to a select group of leadership-appointed members.

This deviation from traditional legislative practices undermines the principle of democratic accountability and could lead to decisions that might not fully reflect the broader interests and values of the American people.

Historically, fiscal commissions have often targeted federal benefits for reductions as part of

MAY ACTION ALERT: TAKE ACTION NOW— SUPPORT MARKUP OF THE SOCIAL SECURITY FAIRNESS ACT, H.R. 82, BY THE HOUSE WAYS AND MEANS COMMITTEE Visit NARFE’s Legislative Action Center at www.narfe.org to send a message to your lawmakers requesting they push the House Ways and Means Committee to advance the Social Security Fairness Act, H.R. 82, with a favorable recommendation, to the House floor! With more than 300 cosponsors, this bill is building momentum toward achieving legislative progress in repealing the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), two longstanding provisions that unfairly reduce the retirement benefits of hardworking public servants.

MYTH VS. REALITY MYTH: Fiscal commissions solely aim to reduce the national debt and deficit without harming earned benefits such as Social Security and federal retirement annuities.

REALITY: While fiscal commissions may be established with the goal of addressing the national debt and deficits, they may meet that goal by recommending significant changes to earned benefits, including federal retirement, Social Security and Medicare. These proposals could potentially affect the livelihood of the millions of federal employees and retirees who rely on these benefits.

broader efforts to cut spending, posing a direct threat to the financial security and well-being of countless individuals who have served our nation. The idea of such a commission, therefore, is not just a matter of fiscal policy but one of fairness and respect for the commitments made to federal workers and retirees.

The concerns extend beyond the mere establishment of the commission to the potential outcomes of its deliberations.

Fast-tracking changes to critical

benefits without adequate public scrutiny or legislative debate could significantly affect the livelihood of members of the federal community. This includes active employees and retirees who rely on these benefits as a cornerstone of their financial planning and security.

NARFE’s position is clear: Any adjustments to federal benefits must be considered through a transparent, inclusive legislative process that allows for full debate and consideration.

Doing otherwise would bypass the normal democratic process, potentially impacting the lives of millions of Americans without the due diligence and scrutiny such significant changes warrant. The prospect of a fiscal commission serves as a reminder of the ongoing need to advocate for policies that reflect the interests and protect the benefits of federal employees and retirees.

—BY IVANA SARA, GRASSROOTS PROGRAM MANAGER

Committee Advances Bill Targeting Drug Benefit Practices

A

bipartisan vote of the House Committee on Oversight and Accountability advanced a NARFE-endorsed bill, the Delinking Revenue from Unfair Gouging (DRUG) Act, H.R. 6283, in February. The bill targets pharmacy benefit manager practices that affect the price and accessibility of prescription drugs, including those covered by the Federal Employees Health Benefits Program (FEHB) and Medicare Part D. NARFE’s letter of support, entered into the hearing record, explained that “the bill would prohibit a business model based on misaligned incentives and conflicts of interest.”

The bill would help reduce costs “by requiring pharmacy benefit managers (PBM) to receive payment via a flat fee for their services (administering prescription drug benefit programs for health insurance plans), and by preventing PBMs from charging health insurers more than what they paid for a medicine,” according to NARFE National President William “Bill” Shackelford. Furthermore, “by eliminating preferences for affiliated pharmacies, the bill would prevent PBMs from restricting or penalizing patient choice based on PBM profits.”

Rep. Marianette MillerMeeks, R-IA, sponsored the bill, which enjoys support from

19 bipartisan cosponsors. Its Senate companion, S. 1542, was introduced by Sen. Roger Marshall, R-KS, along with seven bipartisan cosponsors.

Four congressional committees retain jurisdiction over the bill, due to its various provisions. The Committee on Oversight and Accountability held jurisdiction related to the impact on FEHB. The Committee on Education and the Workforce and the Committee on Energy and Commerce have also advanced the bill; as of press time, the House Committee on Ways and Means had not taken it up.

—BY JOHN HATTON, STAFF VICE PRESIDENT, POLICY AND PROGRAMS NARFE MAGAZINE www.NARFE.org

9

Washington Watch 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.

How NARFE’s Action Letters Transform Grassroots Advocacy into Legislative Impact

C

onstituent letters, or “action letters,” are letters sent via e-mail through NARFE’s Legislative Action Center or via postal mail, to members of Congress that request a specific action.

These are not only a reliable grassroots advocacy tool, but also a pivotal strategy for influencing lawmakers. Despite some perceptions that these methods are outdated or ineffective, evidence suggests they hold significant sway in shaping policy and legislative decisions.

Despite some skepticism that emailed letters are ineffective, overdone or merely symbolic, research indicates that these forms of communication, when personalized, are among the most effective ways for constituents to make their voices heard. A study conducted by the Congressional Management Foundation (CMF) revealed that individualized communications from constituents can have a profound impact on a lawmaker’s decision-making. According to the CMF, personalized emails and letters are often compiled and presented in summary reports to members of Congress, highlighting constituent concerns and positions on pending legislation or current issues.

The strength of action letters lies in the ability to convey

10

NARFE MAGAZINE MAY 2024

constituents’ personal stories, concerns, and viewpoints directly to elected officials.

Unlike generic petitions, these personalized messages introduce a human element to advocacy, making the concerns harder for lawmakers to overlook. Such individualized content tends to resonate more deeply, eliciting thoughtful consideration.

Furthermore, written communications have the advantage of being tangible.

They can be re-read, shared and discussed among legislative staff and lawmakers more easily than verbal communications; note that talking in person or on the phone also are highly effective in communicating with legislators or their staff.

Emails allow for rapid dissemination and response, aligning well with the fastpaced environment of legislative offices. Meanwhile, traditional hand-written letters have a sense of formality and sincerity, potentially standing out amid the digital clutter.

It’s also worth noting the volume of correspondence can signal to a member of Congress the level of public interest or concern about a particular issue.

High volumes of emails and letters on a specific topic can push it higher on a lawmaker’s agenda. This underscores the collective power of grassroots

advocacy, demonstrating the value of multiple individuals uniting for a common cause.

At NARFE’s legislative training conference last year, a panel of congressional staffers shared insights on communication tactics with lawmakers, noting that members of Congress genuinely appreciate and value receiving input from constituents, as it helps them understand how various policies affect those in their district or state. This feedback loop is vital for a functioning democracy, where elected representatives aim to reflect the will and needs of their constituents.

While the impact of action letters on members of Congress can be underestimated, these methods of communication remain powerful grassroots advocacy tools for influencing policy and legislation.

They offer a direct line to policymakers, allowing constituents to articulate their views, share personal anecdotes, and advocate for change. As part of a broader advocacy strategy, action letters can significantly contribute to the success of grassroots campaigns, ensuring that the voices of the federal community are heard loud and clear on Capitol Hill.

—BY IVANA SARA, GRASSROOTS PROGRAM MANAGER

Bill Introduced to Extend Identity Theft Protection in OPM Breach

I

n 2015, the Office of Personnel Management experienced a data breach that compromised the personal information of millions of current, former and prospective federal employees and contractors. In response to this breach, Congress allocated funds for identity protection services for the those who were affected. The requirement for these protections is set to lapse in 2027.

To prevent the lapse, Del. Eleanor Holmes Norton, D-DC, and Rep. C.A. Dutch Ruppersberger, D-MD, introduced the Reducing the Effects of the Cyberattack on OPM Victims Emergency Response Act, or the RECOVER Act, on February 5. The RECOVER Act is designed to

make the identity protection services available indefinitely, providing millions of Americans with peace of mind.

When asked about how the legislation would benefit those affected, Holmes Norton said, “We got some identity protection for federal workers and contractors impacted by the data breach as a first step, but only lifetime identity protection will give these workers the peace of mind they deserve. … Because there is no limit to the duration on when the compromised personal information can be used, Congress must protect these federal employees and contractors in perpetuity.”

Dutch Ruppersberger echoed his support of the legislation

by saying, “The federal workers impacted by the OPM breach are victims. Their personal security was jeopardized through no fault of their own and the records stolen by hackers have no shelf life. The identity theft protection offered to these victims shouldn’t, either.”

“I am proud to once again support this effort to help provide these hard-working men and women with the protections they need and deserve forever,” he said.

The RECOVER Act has been designated as H.R.7084 and was referred to the Committee on Ways and Means and to the Committee on Energy and Commerce.

—BY KHAMARE GARNER, POLITICAL ASSOCIATE

NARFE MAGAZINE www.NARFE.org

11

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.

Annual “Call” Letter Previews 2025 Health Benefit Changes

T

he Office of Personnel Management (OPM) sent out its annual call for benefit and rate proposals for Federal Employees Health Benefits (FEHB) and Postal Service Health Benefits (PSHB) Program Carrier Applicants on February 8, 2024. The “call” letter outlines OPM’s policy goals and plan requirements heading into contract negotiations with health insurance carriers offering plans under FEHB, and now the new PSHB. This year’s call letter provides key policy guidance as it relates to FEHB and PSHB’s coordination with Medicare, and prescription drug coverage under both programs.

WARNING! POTENTIAL IRMAA SURCHARGE

OPM has asked plans to implement “a multi-pronged educational outreach effort to eligible enrollees focused on Medicare coordination, including the potential effects of the Income Related Monthly Adjustment Amount (IRMAA).”

If you tune into NARFE’s webinars, you would know that integration of Medicare prescription drug coverage through Employer Group Waiver Plans (EGWPS) may result in an additional incomerelated charge—IRMAA—from Medicare ranging from $12.90 12

NARFE MAGAZINE MAY 2024

to $81 per month, depending on income. While the new Medicare drug coverage option may lower out-of-pocket costs for many, the cost of IRMAA, loss of some drug company discounts or changing formularies may make it more beneficial to opt-out of such coverage (which all FEHB participants have the choice to do). OPM’s call for education on this topic likely reflects how IRMAA charges surprised many enrollees.

EQUAL TO OR GREATER DRUG COVERAGE

OPM also clarified and reiterated that “in all instances, FEHB and PSHB Program members for whom Medicare is primary must receive medical and drug coverage equal to or greater than the medical and drug coverage they would have received without the Medicare drug coverage.” Last year, OPM did not specify this requirement must apply to “all instances.”

OPM also indicated that FEHB annuitants enrolled in Medicare prescription drug coverage must have “formulary access to all drugs covered under the corresponding FEHB formulary at the same or lower cost-share than they would have otherwise been responsible for if they enrolled solely in the FEHB plan.”

Participants have identified cases where specific drugs cost more due to classification into a different tier, changing formularies, or loss of discounts provided by drug companies. It remains to be seen whether this call letter language will remedy these issues, but it appears to be a step in that direction.

OPM is also requiring drug price transparency, ensuring current and prospective enrollees have access to information, “including, but not limited to, formularies, tiering, member costshare, and utilization management requirements for covered prescription drugs.” This should assist enrollees in making better plan choices—or a more informed choice regarding whether to opt out of (or into) the new Medicare prescription drug benefit.

CHOICE FOR DRUG COVERAGE UNDER FEHB

OPM reiterated the enrollees who have been automatically enrolled in Medicare prescription drug plan add-ons to their FEHB plan may continue to opt out of coverage. It also clarified that plans must use a “seamless, customer-friendly” opt-out process, prohibiting requirements to fill out and mail paper forms or include a wet signature. Some plans did not utilize a customer-friendly approach in 2024.

OPM will continue to accept new plan proposals featuring automatic group enrollment into the Medicare drug plans.

CLARIFYING PSHB REQUIREMENTS

Per the Postal Service Reform Act (PSRA), all postal employees and annuitants will receive health insurance coverage via PSHB in 2025. The act also “requires that Carriers’ 2025 PSHB plans must, in their first contract year, provide medical and pharmacy benefits and associated cost- sharing that are equivalent” to their respective FEHB plans in the same geographical area. That means

the PSHB plans will mirror FEHB plans for the same carrier, but with different rates to reflect the different risk pool and increased Medicare coverage.

One exception to this equivalency requirement applies “to the extent needed to integrate Medicare Part D prescription drug benefits.”

The PSRA requires Medicareeligible postal annuitants to receive drug coverage via Medicare prescription drug plan EGWP, and to the extent the FEHB plan does not provide a similar option, PSHB plans will have flexibility to provide such coverage. But the “PDP EGWP formularies must, at a

minimum, include the same covered drugs under the plan’s formulary,” and “every drug covered in the plan’s formulary must have an equal or lesser cost-share in the plan’s PDP EGWP.” In instances where equivalent benefits or costsharing is not possible due to Medicare Part D integration, the PSHB Carrier must provide justification as to why.

OPM’s guidance appears tailored in this instance to limiting the differences between FEHB and PSHB plans, and limiting the disruption to existing coverage.

—BY NICOLE BLACKSTONE, FEDERAL BENEFITS INSTITUTE PROGRAM MANAGER

NARFE BILL TRACKER

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

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

WHAT BILL WOULD DO Implements merit-based reforms to the civil service hiring system that replace degree-based hiring with skills- and competency-based hiring.

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

Prevents any position in the federal competitive service, created after September 30, 2020, from being reclassified into the excepted service, outside the protection of merit system rules without the express consent of Congress. The bill also requires the consent of an employee to be reclassified, mandates reporting of conversions to the Office of Personnel Management, and places caps on the number of employees converted to the excepted service via Schedule C.

Referred to the House Committee on Oversight and Accountability 2/15/2023

Cosponsors: H.R. 159: 3 (D) 2 (R) S. 59: 1 (D) 2 (R) 0 (I) H.R. 1002/S. 399: Saving the Civil Service Act / Rep. Gerry Connolly, D-VA / Sen. Tim Kaine, D-VA Cosponsors: H.R. 1002: 27 (D) 4 (R) S. 399: 16 (D) 0 (R) 1 (I)

H.R. 1487: The Strengthening the Office of Personnel Management Reform Act / Rep. Gerry Connolly, D-VA FEDERAL PERSONNEL POLICY

Cosponsors: H.R. 1487: 1 (D) 0 (R) H.R. 3115/S. 1496: Public Service Reform Act / Rep. Chip Roy, R-TX / Sen. Rick Scott, R-FL Cosponsors: H.R. 3115: 0 (D) 15 (R) S. 1496: 0 (D) 1 (R) 0 (I) H.R. 7236: Reducing the Effects of the Cyberattack on OPM Victims Emergency Response Act, or the RECOVER Act / Delegate Eleanor Holmes Norton, D-DC-at Large and Rep. Dutch Ruppersberger, D-MD Cosponsors: H.R. 7236: 1 (D) 0 (R) H.R. 5779: Fiscal Commission Act of 2023 / Rep. Bill Huizenga, R-MI S. 3262: The Fiscal Stability Act / Sen. Joe Manchin, D-WV Cosponsors: H.R. 5779: 12 (D) 12 (R) S. 3262: 3 (D) 5 (R) 1 (I)

14

NARFE MAGAZINE MAY 2024

LATEST ACTION(S)

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

Referred to the Senate Committee on Homeland Security and Governmental Affairs 2/14/2023

Referred to the House Codifies several recommendations for Committee on Oversight OPM by the National Academy of Public and Accountability 3/9/2023 Administration (NAPA), such as clarifying that OPM stands at the center of federal civilian human resource management and ensuring the director of OPM possesses human capital and leadership expertise.

Would make all federal employees at-will and enable workers to be removed for good cause, bad cause or no cause at all. The legislation would also abolish the Merit System Protections Board and limit removal appeals to claims of whistleblower retaliation and Equal Employment Opportunity Commission complaints before the US Court of Appeals.

Referred to the House Committee on Oversight and Accountability 5/5/2023

Provides free lifetime identity protection coverage to current, former and prospective federal employees and contractors whose personal information was compromised by Office of Personnel Management (OPM) data breaches in 2015.

Referred to the House Committee on Oversight and Accountability 2/5/24

To establish a commission on fiscal stability and reform.

Ordered to be reported in the nature of a substitute by the yeas and nays 22-12 1/18/24

Referred to the Senate Committee on Homeland Security and Governmental Affairs 5/9/2023

Referred to Senate Committee on Rules and Administration 1/18/24

NARFE BILL TRACKER

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

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

LATEST ACTION(S)

H.R. 82/S. 597: The Social Security Fairness Act / Rep. Garret Graves, R-LA / Sen. Sherrod Brown, D-OH

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

The House Committee on Ways and Means held Field Hearing on 11/21/2023

Reforms the Windfall Elimination Provision (WEP) by providing a monthly rebate of $150 to current beneficiaries (age 62 or older before 2025) and creating a new formula to calculate benefits for future WEP-affected individuals (turning 62 in or after 2025).

Referred to the House Committee on Ways and Means 6/21/2023

Expands and strengthens Social Security benefits, improves solvency of the Social Security trust funds, repeals the Windfall Elimination Provisions and Government Pension Offset, and provides numerous other Social Security related improvements.

Referred to the Committee on Energy and Commerce, and Subcommittee on Health 7/14/23

Reforms the WEP by providing a monthly payment of $100 to current WEP-affected beneficiaries and $50 for an affected spouse or child. Creates a new formula to calculate benefits for future WEP-affected individuals (turning 62 in or after 2025).

Referred to the House Committee on Ways and Means 9/5/2023

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 Committee on Veteran’s Affairs, and the Subcommittee on Disability Assistance and Memorial Affairs 2/28/23

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 Senate Committee on Homeland Security and Governmental Affairs 11/1/23

Referred to the Senate Committee on Finance 3/1/2023

Cosponsors: H.R. 82: 204 (D) 106 (R) S. 597: 41 (D) 9 (R) 3 (I) H.R. 4260: The Public Servants Protection and Fairness Act / Rep. Richard Neal, D-MA Cosponsors: H.R. 4260: 102 (D) 0 (R)

SOCIAL SECURITY

H.R. 4583/S. 2280: Social Security 2100 Act / Rep. John Larson, D-CT / Sen. Richard Blumenthal, D-CT Cosponsors: H.R. 4583: 183 (D) 0 (R) S. 2280: 4 (D) 0 (R) 0 (I) H.R. 5342: Equal Treatment of Public Servants Act of 2023 / Rep. Jodey Arrington, R-TX Cosponsors: H.R. 5342: 1 (D) 30 (R)

H.R. 716: The Fair COLA for Seniors Act / Rep. John Garamendi, D-CA Cosponsors: H.R. 716: 37 (D) 0 (R) FEDERAL ANNUITIES

H.R. 866 / S. 3194: The Equal COLA Act / Rep. Gerry Connolly, D-VA / Sen. Alex Padilla, D-CA Cosponsors: H.R. 866: 47 (D) 3 (R) S. 3194: 6 (D) 0 (R) 2 (I)

NARFE’s Position:

Referred to the Senate Committee on Finance 7/12/2023

Support

Oppose

No position

NARFE MAGAZINE www.NARFE.org

15

NARFE BILL TRACKER

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

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

Provides federal employees H.R. 536/ S. 124: The Federal with an 8.7% average pay raise Adjustment of Income Rates (FAIR) Act / Rep. Gerry Connolly, in 2024.

D-VA / Sen. Brian Schatz, D-HI Cosponsors: H.R. 536: 77 (D) 1 (R) S. 124: 19 (D) 0 (R) 1 (I) H.R. 856/ S. 274: Comprehensive Paid Leave for Federal Employees Act / Rep. Don Beyer, D-VA / Sen Brian Schatz, D-HI

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

Cosponsors: H.R. 1301: 3 (D) 0 (R) S. 640 15 (D) 0 (R) 1 (I) FEDERAL COMPENSATION

H.R. 5883 / S. 3029: Honoring Civil Servants Killed in the Line of Duty Act of 2023 / Rep. Gerald Connolly, D-VA / Sen. Kyrsten Sinema, I-AZ Cosponsors: H.R. 5883: 1 (D) 2 (R) S. 3029: 1 (D) 2 (R) 0 (I) H.R. 5995: The Federal Retirement Fairness Act / Rep. Derek Kilmer (D-WA) Cosponsors: H.R. 5995: 65 (D) 22 (R)

H.R. 7127: Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerry Connolly (D-VA) / Sen. Brian Schatz (D-HI )

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

Cosponsors: H.R. 856: 40 (D) 3 (R) S.274: 10 (D) 0 (R) 1 (I) H.R. 1301/ S. 640: Federal Employees Civil Relief Act / Rep. Derek Kilmer, D-WA / Sen. Brian Schatz, D-HI

LATEST ACTION(S)

Protects federal workers and contractors from a variety of civil financial penalties during a lapse in appropriations or a breach of the debt ceiling.

Referred to the House Committees on Oversight and Accountability, Financial Services, Ways and Means, Judiciary, Education and Workforce, and House Administration 3/1/2023 Referred to the Senate Committee on Finance 3/2/2023

Aims to significantly increase death gratuities and funeral allowances for federal employees who tragically lose their lives while serving the nation. This bill would ensure that the families of dedicated civil servants receive greater financial support during their time of loss.

Referred to the House Committee on Veteran’s Affairs, and the Subcommittee on Health 11/9/23

Referred to House Committee Allow federal employees on Oversight and Accountability who started their careers 10/25/23 as temporary workers, but transitioned to permanent work, to buy credit towards retirement for their temporary work. The FRFA enables these workers to make catch-up contributions, ensuring they receive full retirement credit for their service.

Provides federal employees with Referred to House Committee on a 7.4% average pay raise in 2025 Oversight and Accountability

Cosponsors: H.R. 7127: 80 (D) 0 (R) NARFE’s Position: 16

NARFE MAGAZINE MAY 2024

Support

Oppose

No position

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1 The Service Benefit Plan may pay a hearing aid benefit for Basic and Standard Option members 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. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under the Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefit first before accessing the savings of the Blue365® Discount Program. To find out what is covered under your policy, contact the customer service number on the back of your member ID card. The products and services described herein are neither offered nor guaranteed under any

Cynthia is wearing the TruHearing Premium RIC hearing aid

local Blue company’s contract with the Medicare program. These items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Disputed Claims process. Blue Cross Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time.

2 Price shown does not include cost of comprehensive hearing exam. Examination and testing for prescribing of hearing aids is covered under the Service Benefit Plan. The member should confirm that the provider rendering the hearing exam is a Preferred provider. If the provider is Non-preferred, the member

Questions Questions&&Answers 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

CONTINUING FEHB IN RETIREMENT

Q

I recently returned to federal service, and I am covered under the Federal Employee Health Benefits (FEHB) program. I may continue to work for three more years before I am eligible to retire, and I want to be sure that I can continue my FEHB coverage in retirement.

If you retire with an immediate retirement, that is, one that will begin within 30 days of when you separate from federal service (even if you postpone receiving an immediate MRA + 10 benefit), you will have met the first condition to continue your FEHB coverage into retirement.

The second condition is that you must have been continuously covered under FEHB for the last five years of your federal career. The good news is that if you have had a break in service, this won’t count as an interruption in the five years if you were covered during the final years of your last federal appointment. For example, if you are covered under FEHB for the three years that you are currently employed and were covered for the last two years of your last appointment, then you should be able to pass the five-year test to continue coverage into retirement. Remember that time covered as a family member can also be used for the five-year requirement. Time covered under the Uniformed Services Health Benefits Program (also known as TRICARE or CHAMPUS) or CHAMPVA counts if you were covered under an FEHB enrollment on the last day of employment.

A

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NARFE MAGAZINE MAY 2024

Find more information in the FEHB Handbook located at https://www.opm.gov/healthcareinsurance/healthcare/ under “Reference Materials.”

CHANGING FEGLI COVERAGE

Q

My Federal Employee Group Life Insurance (FEGLI) rates continue to increase. When can I reduce my coverage?

The premiums for Basic FEGLI coverage stay the same, regardless of age. However, Option A, B, and C premiums will increase every five years between the ages of 35 and 80. You can always reduce your FEGLI coverage at any time if it is more expensive than the value it is providing. Employees should use their agency’s online system (i.e., GRB Platform, myPay, Employee Express, etc.) or complete the Life Insurance Election form SF 2817 available at opm.gov/forms. The completed form should be submitted to your Human Resources or Shared Service Office. Only sign up for the coverage that you wish to continue.

FEGLI will pay your beneficiary regardless of the cause of your death unless it is determined

A

that your beneficiary has intentionally caused your death. Basic coverage has $0 premium in retirement after age 65 by electing the 75% reduction option on Form SF 2818 when the coverage begins to reduce by 2% per month until it reduces to 25% of the original value. To calculate your cost and coverage visit https://www.opm.gov/ healthcare-insurance/life-insurance/.

Retirees must write a letter to OPM clearly stating the reduction or cancellation you want to make. Be sure to include your signature, CSA number or social security number, and your phone number. Send the letter to: Office of Personnel Management Retirement Operations Center P.O. Box 45 Boyers, PA 16017-0045 Please note that you cannot enroll, increase coverage, or restore canceled coverage after you have retired. For employees/retirees who may wish to replace FEGLI with private term life insurance, be sure to check the exclusions and medical underwriting requirements before canceling or reducing FEGLI. When an employee experiences a life event, an open enrollment, or upon being hired, there is no medical underwriting to enroll in FEGLI or increase your coverage. If you are an employee who wishes to increase your FEGLI coverage outside of these occasions, you will need to provide SF 2822, Request for Insurance Form, completed and signed by your physician. There is no planned open enrollment currently.

RETIREMENT SWITCHING FEHB TO SELF-ONLY

Q

Shortly after my husband passed away, I notified my health plan multiple times to change to a self-only plan. I have provided them with a Death Certificate and forms as requested. I am still paying for family coverage when it is only myself on the health plan. I have made multiple attempts to notify my plan to change my benefits to a self-only enrollment! What else do I need to do?

OPM is responsible for making the change to your FEHB enrollments i.e., self +one, self only.

There are a few ways to do this: • You may want to call OPM for the fastest response. Call 888-767-6738 beginning at

A

7:40am or after 3pm Eastern time. Wednesday through Friday tend to be less busy.

• Email OPM at retire@OPM.gov and provide your CSA or CSF number.

• Submit the Form OPM 2809, https://www.opm. gov/forms/pdf_fill/opm2809.pdf. The address is on the last page of the form: U.S. Office of Personnel Management Retirement Services Washington DC 20415

SURVIVOR ANNUITY BENEFIT AFTER DIVORCE

Q

I am retired under FERS and will be getting divorced. Upon divorce, is my former spouse entitled to the survivor annuity benefit that I elected at retirement?

When your marriage ends through death or divorce, the survivor benefit election made at retirement ends. By contacting OPM, your annuity may be restored to an unreduced amount.

The survivor benefit may be continued through the divorce decree/court order. Be sure that your attorney refers to the language in the Handbook for Attorneys on Court-ordered Retirement,

A

COUNTDOWN TO COLA The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.7% percent in February 2024. To calculate the 2025 cost-of-living adjustment (COLA), the 2024 third-quarter indices will be averaged and compared with the 2024 third-quarter average of 301.236. The percentage increase determines the COLA. February’s index, 304.284, is up 1 percent from the base.

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

MONTH

OCTOBER 2023

CPI-W

Monthly % Change

% Change from 301.236

302.071

-0.06

0.27

NOVEMBER

301.224

-0.28

-0.0004

DECEMBER

300.728

-0.16

-0.17

JANUARY 2024

302.201

0.49

0.32

FEBRUARY

304.284

0.7

1

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

NARFE MAGAZINE www.NARFE.org

21

Questions & Answers

Health Benefits and Life Insurance https://www. opm.gov/retirement-center/publications-forms/ pamphlets/ri38-116.pdf. You may notify the Office of Personnel Management (OPM) with a certified copy of the divorce court order (or death certificate, in the case of a death) to request cancellation of the election and increase your annuity payment, however, if it continues in the divorce agreement, then you will need to submit a copy of the court order to OPM: U.S. Office of Personnel Management Court-Ordered Benefits Branch P. O. Box 17 Washington DC 20044-0017 It will take OPM several months to process this request after they receive the required documentation. See also: https://www.opm.gov/ retirement-center/my-annuity-and-benefits/ life-events/

MEDICARE PART B ENROLLMENT

Q

If I am enrolled in FEHB, am I exempt from the late enrollment penalty for Medicare Part B if I wait until I’m older to enroll?

To be exempt from the late enrollment penalty, you must enroll in Part B during your Initial Enrollment Period (IEP) which begins three months before your 65th birthday and ends three months after. There are two exceptions to this: 1. If you are currently employed and enrolled in FEHB through your employment (or covered by health insurance through your spouse who is currently employed), then you can delay Part B enrollment without a late enrollment penalty. In this situation, you will have a Special Enrollment Period (SEP) to enroll within eight months following the month of retirement.

2. You may also enroll without a late enrollment penalty if you do so within 12 months of the end of your IEP or within 12 months of date of retirement (if over 65 and covered by current employment health coverage) during a General Enrollment Period (GEP) that runs from January 1st through March 31st every year, with coverage effective the following month.

Otherwise, a permanent late enrollment penalty or 10 percent of the standard Part B premium is assessed for each full 12 month period when you could have been enrolled but weren’t.

A

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NARFE MAGAZINE MAY 2024

Q

I am over age 65 and I recently retired at the end of 2023 with Medicare Part A coverage and FEHB that will continue in retirement. I am enrolled in Blue Cross/Blue Shield (BCBS) standard option health plan. I know some annuitants have decided that the combination of Medicare A Hospital Insurance with the BC/BS Standard plan is good enough healthcare coverage. I’m aware that I have a Special Enrollment Period after retirement that will last for eight months following my retirement to make the decision to enroll in Medicare Part B without a late enrollment penalty.

I’m wondering if NARFE has any guidance to share when making this decision.

You can learn more about the coordination between Medicare and FEHB at the NARFE Federal Benefits Institute where you will find a series of webinars on coordinating Medicare and FEHB along with many other retirement topics. https:// www.narfe.org/federal-benefits-institute/ Most federal retirees who are age 65 and over enroll in Medicare Parts A and B (referred to as original Medicare). While it is true that your FEHB plan will cover you if you are not enrolled in Medicare, there are benefits of enrollment that include: • Many FEHB plans waive their cost-sharing (deductible, copays, coinsurance) when Medicare is primary payer.

• Some plans will provide a Medicare Part B reimbursement or Health Fund that can be used to lower the cost of the Part B premium.

• Many FEHB plans offer an enhanced Medicare Advantage benefit (Part C) at no additional charge. You must be enrolled in Medicare A & B to enroll in this option, and you may pay an Income Related Monthly Adjustment Amount (IRMAA) if your modified adjusted gross income as shown on your 2022 tax return is higher than $103,000 (single taxpayer or married filing separate return) or $206,000 (those filing a joint tax return).

• In 2024, some plans are enrolling retirees with Medicare A or B into a Medicare Prescription Drug Plan / Employer Group Waiver Plan that is designed to cover your medications at a lower cost and limited out-of-pocket expense. These plans do not have a premium, however they are also impacted by the IRMAA surcharge. Retirees may

A

choose to keep this coverage or cancel enrollment at any time.

• It is not always the most expensive plan that offers the best coordination with Medicare, so you also may save money by comparing how various plans coordinate benefits with Medicare, paying special attention to your specific health care needs.

REENROLLING IN A MEDICARE PRESCRIPTION DRUG PLAN

Q

I was overwhelmed with all the changes to the Medicare Prescription Drug Program and thought it could not be good and I opted-out of the Medicare PDP. Now I have been learning of its benefits. When can I reapply for it and is there a penalty?

If you are enrolled in Medicare and are not enrolled in a Medicare Advantage Plan (Part C), you may have been automatically enrolled in the Medicare Prescription Drug Plan (PDP) Employer Group Waiver Plan (EGWP) in 2024.

Quite a few of the FEHB plans began to offer this benefit in 2024. In most cases, if you cancel this coverage, then you may reenroll during the next Open Season (November 11 to December 9, 2024).

You will not incur a late enrollment penalty for delaying enrollment or reenrolling in Part D. You may opt-out of the Medicare PDP EGWP at any time. Call your FEHB plan to ask for a disenrollment form. The form may also be available on your plan’s website. To find your plan’s website visit https://www. opm.gov/healthcare-insurance/healthcare/ plan-information/plans/ If you are enrolled in one of the Medicare Advantage plans offered through your FEHB health plan, in most cases, these plans include Medicare Part D prescription drug coverage. You may return to your original FEHB coverage at any time if you decide you no longer wish to be enrolled in the Medicare Advantage option.

A

AFTER-TAX DEDUCTIONS FOR PREMIUMS

Q

As a retired CSRS employee, does my Medicare Part B payment and my FEHB premium get deducted before taxes are withheld?

Unfortunately, FEHB premiums and Medicare Part B premiums are deducted from after tax income for retirees. You may be able to claim the cost as a deduction if you are self-employed or have higher medical expenses. Retired public safety officers (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), may exclude the lesser of the amount of insurance premiums or $3,000 from their taxable income. See IRS Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits and Publication 502, Medical and Dental Expenses. for more information or contact your tax advisor for further assistance.

A

CHOOSING A HEALTH CARE PLAN

Q

I am turning 65 soon and need to consider my options to pay for medical expenses as I get older. What are some of the ways to filter the various options and find plans that work well with Medicare?

Once you’ve narrowed your selection using the two plan comparison tools below, it is important to review the plan websites and brochures to see specific information related to Medicare coordination, prescription drug coverage, and specific medical care information. The plan brochures can be searched using keywords if you search them online, otherwise use the index and table of contents to find specific information such as in Section 9 of the brochures where you will find Medicare coordination.

• The FEHB Plan Comparison Tool (PCT) at https://www.opm.gov/healthcare-insurance/ healthcare/plan-information/compare-plans/ • The Consumers’ Checkbook Guide to Federal Health Plans. Check to see if your agency provides this tool at no fee if you are employed.

Use discount code 20NARFE to save 20 percent off the cost of this guide. https://www. checkbook.org/newhig2.

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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.

NARFE MAGAZINE www.NARFE.org

23

Benefits Brief

Locating and Maintaining Your Important Records

I

t’s easy to think that once we’ve retired, our government career is done, and we can sit back and reap the rewards of our hard work. For the most part that is true; however, it is important to maintain, organize and review valuable retirement and insurance benefits from time to time.

NARFE has prepared a guide, “Be Prepared for Life’s Events,” that can be found at www.narfe. org/f-100. The purpose of this guide is to help you organize your personal and financial information in one location so your survivors will have the information they will need to handle your affairs when that time comes. You should ensure that your family members review this guide with you and know where it is located. Here is a checklist of additional items you may need to add to your to-do list:

ADDRESS:

There are times when you may need to update your phone number, email, or mailing address so that the agencies that provide your valuable retirement benefits can communicate with you.

• Social Security: https://www.ssa.gov/ personal-record/update-contact-information • Office of Personnel Management: https:// www.opm.gov/support/retirement/how-to/ change-your-mailing-address/ • Thrift Savings Plan: https://www.tsp.gov/ tsp-basics/update-your-mailing-address/

DESIGNATION OF BENEFICIARY FORMS: If there is not a valid beneficiary designation on file for the benefits listed, then the federal standard order of precedence will be used. It should be noted that a will does not take precedence over this order: • To your widow or widower • If none, to your child or children in equal shares, with the share of any deceased child distributed among that child’s descendants.

• If none, to your parents in equal shares or the entire amount to your surviving parent • If none, to the executor or administrator of your estate (your will) • If none, to your next of kin under the laws of the State where you lived at the time of your death.

• Federal Employees Group Life Insurance (FEGLI) SF 2823

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NARFE MAGAZINE MAY 2024

◊ If you did not assign ownership and there is a no valid court order on file with your agency or OPM, then the Office of FEGLI will pay according to the standard precedence.

• CSRS and FERS, SF 3102 (last retirement payment and any unpaid retirement contributions) • Unpaid Compensation of Deceased Civilian Employee (employees only) SF 1152 • Thrift Savings Plan (TSP), Form TSP-3 is no longer used; log into “My Account”, https:// www.tsp.gov/ Check your annual account statement to be sure that your beneficiary designation is up to date. Forms available at www.opm.gov/forms.

REEMPLOYMENT:

You can work after retirement and continue to receive your benefits. However, depending on your age and income, you may need to report your reemployment status and your earnings to the OPM if: • You are receiving the FERS Special Retirement Supplement (you will receive an earnings survey annually from OPM).

• You are reemployed in federal civilian service to be sure there is no conflict or offset to your salary due to your CSRS or FERS retirement.

Also report your earnings to the Social Security Administration if you are under the Full Retirement Age (67 if you were born in 1960 or later) and are receiving benefits. The annual earnings limit is $22,320 for 2024, and if you have earned income higher than this, your benefit may be reduced by $1 for every $2 you exceed this limit up to your full retirement age.

DO YOU HAVE THE FOLLOWING DOCUMENTS FILED IN A SAFE PLACE?

If you need replacements, here are some ways to find them:

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

• Military Discharge, Form DD 214 or equivalent; request from Veterans’ Service Records at https://www.archives.gov/veterans/ military-service-records • Social Security card: Obtain at https://www. ssa.gov/number-card/replace-card • Marriage, birth, divorce or death certificates: You can apply for a copy through the Vital Records Office in the state in which the event occurred. Another source for obtaining certificates is VitalChek.com.

CIVILIAN PERSONNEL RECORDS:

• Current Employees ◊ Employees should copy their electronic Official Personnel Folder (eOPF) or request copies of important documents before retirement, including:

LEARN ABOUT A RECENT CHANGE TO TSP BENEFICIARY RULES, PAGE 44, IN OUR MANAGING MONEY COLUMN. ◊ Beginning and ending dates of federal appointments, changes in retirement coverage, and changes in work schedule ◊ FEHB Election Forms, SF 2809 ◊ FEGLI Life Insurance Election Forms, SF 2817 ◊ Notification of Change in Health Benefit Enrollment, Form SF 2810 ◊ Agency Certification of Insurance Status, Form, SF 2821 • Former Employees ◊ Contact the National Personnel Records Center (NPRC) at https://www.archives. gov/personnel-records-center/civilian-nonarchival.

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

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Challenges Facing

The Senior Executive Service How the SES has changed since its start in 1978—and what’s next.

BY EVERETT A. CHASEN

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NARFE MAGAZINE MAY 2024

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27

T

he Civil Service Reform Act of 1978 established a Senior Executive Service (SES) to lead the federal government’s workforce. The SES was designed to “ensure that the executive management of the government of the United States is responsive to the needs, policies, and goals of the nation and otherwise is of the highest quality.”

For both career and noncareer SES members who were on board at the end of fiscal year 2020, 40.6% were eligible to retire by the end of fiscal year 2021; 62.2% will be eligible to retire by the end of fiscal year 2025; and 79.8% will be eligible to retire by the end of fiscal year 2030.

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The legislation created a corps of trained expert public managers expected to mediate between the political appointees at the heads of Federal agencies and the career employees who staff our nation’s permanent bureaucracy. These administrators were put in charge of policy implementation throughout the government. They were encouraged to move between agencies, bringing stability to public agencies through political transitions and handling major executivelevel decisions and actions alongside the executives appointed by the current president.

Today’s SES is “a cadre of proven executive leaders that not only know how to lead people and lead change as we continue to evolve as a country, but also can manage large complex programs and organizations,” says Marcus Hill, president of the Senior Executives Association (SEA), a professional organization helping career Federal leaders better serve the American people.

“Their challenges are a little bit different than some of the ones I experienced,” he said. “They relate to the lack of resources executives are given in order to fulfill their obligations in support of their agency’s missions.

Hill was a senior executive with the Department of Homeland Security from 2006 until his retirement at the end of 2020.

Because of continuing appropriation negotiations in Congress, “SESers are having to manage difficult financial programmatic issues and aren’t necessarily in a position to really propel their programs to where the American people expect them to be.”

Facts and Figures

In June 2023, the Partnership for Public Service issued a report entitled “Senior Executive Service: trends over 25 years.”

“Given their leadership role and the vital part they play in ensuring the federal government achieves its mission, it’s important to understand more about the composition of the SES,” according to the report. “We found that although the SES has grown as the workforce has grown and has become more diverse over time, it still is not fully representative of the composition of the federal workforce as a whole.”

Today, more than 8,000 SES members work at agencies throughout the federal government.

According to the report, the total number of SESers has increased significantly over the past 25 years (from approximately 6,846 in 1998 to 8,222 in 2022). However, the percentage of SESers in the entire career workforce has remained the same, at 0.4%.

In 1998, approximately one-fifth of career SES employees (those with civil service protections, who make up 90% of the service) were female (20.1%).

By 2022, this has risen to approximately two-fifths (37.6%). Since publicly available data on the race and ethnicity of federal employees was only available beginning in fiscal year 2007, the Partnership could only analyze these trends over the past 15 years. In 2007, just 16% of career SES members identified as people of color. By 2022, this percentage had increased to 24.7%, although 39.2% of the total federal workforce identified as people of color.

In 1998, 11.5% of members of the career SES were above the age of 60, and 58% were between the ages of 50 and 59. In 2022, the percentage of careerists above the age of 60 had risen to 26.6%, and 49.5% were between 50 and 59. Also, in 1998 career SES members who had served 25-29 years in federal service accounted for approximately 29.6% of the career SES, while 8.2% had served for 35 years or more. By 2022, the percentage of career SES who had served between 25-29 years had dropped to 13.9%, while the proportion of those who had served 35 years or more increased to 13.3%.

Finally, of both career and non-career SES who were on board at the end of fiscal 2020, 40.6% were eligible to retire by the end of fiscal 2021, 62.2% will be eligible to retire by the end of fiscal 2025 and 79.8% by the end of fiscal 2030.

“Retirement eligibility numbers are not predictions of how much of the workforce will retire,” the report states. “However, they can help indicate where potential losses of institutional knowledge and leadership could emerge.”

An “Original” SESer Remembers

Bob Schultz became an SES member years before the Partnership’s data began to be tabulated. He was

 8,000+ Today, more than 8,000 SES members work at agencies throughout the federal government.

While that number has increased significantly over the last 25 years, the total percentage of SES members in the federal career workforce has remained the same at 0.4%. appointed a career senior executive in 1980, the year after the first selections were made. In that year, he was hired as director of reports and statistics for the Department of Veterans Affairs (VA), the office in which he had served in five different positions for the ten years before his appointment.

“Serving in multiple positions,” he says, “increased my chances of being selected as an SES.” Schultz recalled one of the provisions of the new senior executive program, a provision that still exists, was that agencies were given the power to reassign a career SES member to any SES position in the agency for which he or she was qualified, including locations in different commuting areas— and that agencies could remove career appointees who didn’t accept directed reassignments.

“I knew people who said they were not going to go into the SES because their agencies could move you around anywhere they want. They can send you across the country.”

Schultz, however, was unfazed.

“I just had no fear of that,” he said. “I didn’t worry that something bad would happen to me. I thought that if I do a decent job, they’re not going to send me somewhere else to do a job where I have no knowledge about what to do. And the other thing was, I wanted to do the job I applied for.”

SES Candidate Development Programs (CDPs) to identify and prepare aspiring senior executives

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existed even in those early days, but Schultz didn’t participate in one.

“I remember I qualified for VA’s candidate development program, but I think I was selected before I ever got any training,” Schultz said.

Later on, Schultz attended several management seminars offered by various training organizations.

In his 23-year career as an SES member, Schultz was appointed to several varied VA positions at the deputy assistant secretary (DAS) level, all in Washington, D.C. These included serving as DAS for information management and statistics; public affairs; acquisition, logistics, and construction; administration; and as principal DAS for human resources and administration.

“You can get moved as an SES,” he added. “Just not necessarily geographically.”

Schultz said being an SES member “was a great experience for me.” He retired 20 years ago.

The Role of OPM

The Office of Personnel Management (OPM) provides leadership to other federal agencies the development of regulations and supplementary guidance on the entire range of executive personnel activities. These include position management and authorization; merit staffing; noncompetitive placements, such as reassignments, noncareer appointments, limited appointments, and reinstatements; pay administration; leave and benefits; performance management; and awards.

They also have responsibility for SES disciplinary actions, reduction in force issues and removals.

OPM believes changing times and priorities, increases in missions, programs and responsibilities for federal agencies since 1979, and the increasing difficulty of navigating political waters and challenges, means tomorrow’s SESers must become “an agile force leading the way.”

The agency is now studying how the service has evolved over the last decade, and how it can be reformed in the next few years.

On the table, according to the agency, are reviews in areas including SES candidate development programs; qualifications review boards (QRBs) that determine whether SES applicants have sufficient experience and expertise; executive resources boards (ERBSs) that conduct the SES staffing process at every agency; and performance

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review boards (PRBs), which appraise executive performance. The agency is also looking at modernizing hiring processes government-wide and is inviting other agencies to join them in their efforts.

OPM also plans to conduct reviews of existing legislation and regulations to identify areas where it can propose changes that will bring the system up to date and allow for evolution over time. The office specifically mentioned the challenge of pay compression, which refers to when a federal worker is paid at or near the pay cap on federal salaries. This means that when federal employees receive their annual pay raise, these employees miss out on some or all of that raise, and that some GS-15s and even GS-14s can receive the same or more pay than some SESers. The agency believes this may keep some prospective SES members from applying for an SES position.

According to an OPM representative, its ultimate goal is to “ensure the SES is strengthened with visionary thought leaders who drive impacting change through innovation and evolution. And that happens through a balance of recruitment, development and accountability.”

The SEA Sees Room to Improve

SEA President Hill listed several challenges facing the SES program. His organization is particularly concerned with continued executive development for those who have already been appointed to the service. He cited his own experience.

“While I might have thought I knew everything when I was appointed, I did not,” he said. “My initial appointment was probably one of the most vulnerable times in my career. Even though you’ve demonstrated the acumen and skill sets and competencies to get to this level, it’s really important to start out the right way.”

Hill believes having access to professional development as a senior executive is critically important—and some agencies don’t have the luxury or latitude to fund professional development to “the levels they would desire.” He approvingly cited a mentoring program run by the Federal Retirement Thrift Investment Board that hires retired and former senior executives to mentor aspiring and rising leaders.

SEA offers training to its members, including an annual Senior Executive Leadership Summit,

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“My initial appointment was probably one of the most vulnerable times in my career. Even though you’ve demonstrated the acumen and skill sets to get to this level, it’s really important to start out the right way.”

– Marcus Hill, president of the Senior Executives Association a themed three-day program held virtually or in person. The association also produces webinars and connects members with other training opportunities from different groups, including the National Academy of Public Administration (NAPA) and the Shared Services Leadership Coalition (SSLC). They also provide regular networking opportunities for members.

While Hill believes the service is “functioning adequately,” he says “there’s always room for improvement.” He agrees with OPM that the performance management system needs to be modernized, and hopes the administration and Congress will work together to modernize the entire civil service system. He also believes pay compression is an important SES issue, having experienced the problem first-hand before he retired.

“I would like to see SESers be compensated more closely to the level of their contributions,” he said, adding that he is concerned pay issues are causing many talented SESers to “exit the federal service to pursue opportunities within the private sector.”

Finally, he fears the possible return of Schedule F, an executive order issued under the Trump administration that is no longer in effect. The order would have created a job classification in the civil service that removes civil service protections from many senior policy-related government positions, making those who held them easier to fire. The SEA, along with NARFE and other organizations, opposes the return of Schedule F, believing civil servants of all ranks should be hired and fired based on merit, not political affiliation.

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“I think the primary benefit our association offers is the opportunity to be associated with an organization that really advocates for the legislative interests of our membership,” Hill said. “We make sure we are being heard on the Hill (in the Senate and House of Representatives) and within the administration, the Office of Management and Budget (OMB) and OPM as it relates to policies and legislation that may impact not only senior executives, but other senior managers who may be affected by those policies.”

Want to Be a Member of the SES?

Along with active and retired SES members, the SEA welcomes aspiring and rising leaders, from GS-12 through GS-15. The SEA creates networking opportunities for them with current and former members and connects them with continuous professional development opportunities as part of its mission.

OPM offers prospective leaders useful advice. “We recommend seeking out mentors, champions and allies, and tapping into their knowledge, experience and perspective,” the agency said in a written statement.

“Challenge yourself to move beyond your comfort zone and take risks without fear. Challenge yourself to change and be a part of change rather than a spectator. Lean in and be seen as a strategic thinker, a visionary, a leader.”

Additionally, OPM suggests interested individuals seek out SES CDPs as a way to bolster their current competencies and to grow in other competencies that are required for QRB certification.

“I see the future of the SES program being one of opportunity,” Hill said. “There’s still challenges relating to underrepresentation of females and people of color in the SES ranks. And there are still challenges related to being properly resourced in order to fulfill agencies’ missions.’

“But I’m an optimist. I believe through organizations like SEA, NARFE and NAPA who are focused on promoting and advocating for good government and working together to address mutual interests, our voices will carry the day, and continue to strengthen the SES corps.”

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

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F ERS

RETIREMENT PLANNING 34

NARFE MAGAZINE MAY 2024

UNDER FERS

BY TAMMY FLANAGAN

I

t used to be that planning for retirement involved visiting the personnel office, usually in the same building where you worked, to complete a retirement application about 30 days before retirement. Fast forward to today’s federal employee, one who was hired after 1983. Today, there is much more work to do to prepare for retirement.

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For starters, the retirement specialist who used to be a few steps away is often in a consolidated human resources service center and is only available via email or possibly via a toll-free customer service number, and in some cases, not available at all for a one-on-one conversation. Retirement planning must now begin at least 30 years before retirement due to the important role that saving for your own retirement has on your ability to retire comfortably and at a relatively young age!

Today there are more than 1.1 million Civil Service Retirement System (CSRS) employee annuitants on the Office of Personnel Management’s (OPM) retirement rolls and, believe it or not, almost as many who retired under the Federal Employees Retirement System (FERS). It has now been 40 years since the first federal employee was hired who would automatically be covered by the “new” FERS in 1984.

I transferred to the retirement office of the FBI headquarters in 1985 where my work initially involved helping CSRS employees understand the value of their retirement benefits. However, the seeds for the “new” retirement system were already being planted as I was trained to provide service to our workforce. Many of us remember the mid-1980s, when CSRS employees were allowed to transfer from CSRS to FERS, and the word on the street was, “Whatever Congress designed must be good for the government and not good for us! We want no part of it!”

However, you may be surprised to learn that many of the employees who were first hired after 1983 and had no choice in their retirement coverage may beg to differ with that opinion.

The CSRS and FERS systems depend on different factors to create an affordable “life after retirement.” It could be argued either way which one is better. The biggest difference is that CSRS was designed as a single-benefit retirement plan.

CSRS was signed into law in 1920, 15 years before our country had a Social Security retirement system and almost 60 years before the first 401(k) was implemented!

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CSRS was based on a single defined benefit government pension—albeit a generous one— administered by OPM. For employees who came into federal service early and stayed for 30-plus years, CSRS is hands-down the winner for its more generous benefit computation, full and immediate cost-of-living adjustments (COLAs), and its simplicity. The biggest downside of CSRS was due to the “golden handcuffs” caused by the lack of portability. This wasn’t the best system for those employees who came to federal service after paying into Social Security for 20 years or who left federal service after 20 years of not paying FICA taxes, as it left a gap in their Social Security earnings record and made them subject to the “evil twins” of the Windfall Elimination Provision and Government Pension Offset.

Today, very few employees are exempt from paying Social Security payroll taxes, and most workers know the importance of a generous retirement savings plan. FERS was designed as a three-part system with a defined government pension like CSRS, but with a less generous computation and delayed, “diet” COLAs. FERS also provided an employer-sponsored savings plan, the government’s version of a 401(k) plan that we all know as the Thrift Savings Plan (TSP), along with coverage under Social Security. Contributions to the TSP and coverage under Social Security are portable benefits, as they follow you throughout your career, whether that career was in the private sector, military service, federal civilian employment, or a combination of all three.

Although unique to federal service, the TSP can be transferred to a 401(k) or an IRA or left in the TSP after leaving federal civilian employment or uniformed service. In addition, after five years of FERS-covered employment, federal employees who separate from service are entitled to a deferred FERS Basic Retirement Benefit based on a small mandatory employee contribution of less than 1%. Initially the retirement contribution for FERS was 0.8% of basic pay for most FERS employees. However, in 2013, the employee

$

contribution increased to 3.1% for most new hires and to 4.4% in 2014.

THRIFT SAVINGS PLAN

To plan for retirement at a relatively early age, it is critical for new employees with FERS coverage to understand how to invest in and manage their TSP account. In the early days of FERS, many employees found mentors in the form of CSRS coworkers and supervisors who warned the FERS employees of their need to save if they even wanted to come close to the fabulous CSRS benefits that they missed because of being hired too late to have CSRS coverage. While this threat did wonders to encourage and frighten FERS-covered workers, it is

also important to understand some basic retirement savings concepts. These include: I. Today is a good day to start saving. FERS employees who are hired after October 1, 2020, are automatically enrolled in the TSP so that from day one of their careers, 5% of their

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basic pay is deducted from every paycheck unless an election was made to stop or change the contribution. The first 3% of employee contributions are matched dollar-for-dollar by the agency; the next 2% are matched at 50 cents on the dollar. This means that when an employee contributes 5% of their basic pay, the agency contributes an amount equal to 4% of their basic pay and, together with the agency’s automatic 1% contribution, the agency puts in a total of 5%. All contributions are immediately vested except for the 1% automatic agency contribution that belongs to you after three years.

II. Save more. Plan to increase your savings when you get a pay increase. After all, you were living on a lower salary before the raise, so it won’t be as noticeable when you increase your TSP contributions. Also, remember that increasing your pre-tax TSP contributions will lower your tax withholding, so it won’t “hurt” as much as you think it will!

III. Pay me now or pay me later. Learn the difference between designating your investments as pre-tax savings, taxed when the money is distributed, or after-tax Roth contributions, taxed in the year that

contributions are made. With Roth TSP investments, earnings and future distributions are tax-free. Be aware that there are two requirements that must be met for tax-free Roth withdrawals: a. Five years have passed since January 1 of the calendar year when you made your first Roth TSP contribution. b. You are at least age 59½, permanently disabled, or deceased.

IV. Manage your money. Decide to invest in a mix of the five core TSP funds: G, C, F, S, and I or invest your entire portfolio in one of the 10 lifecycle funds, which are diversified between the five core funds in a way that is designed to provide the best-expected return for risk that is appropriate to meet your retirement goals.

There is also a mutual fund window allowing even more options for added flexibility but at a higher cost.

While it is true that employees should strive to save at least 5% of their basic salary rate in the TSP, thanks to agency automatic and matching contributions, the 5% employee contribution equals 10% of the employee’s basic pay that goes into the TSP account. Many employees consider this to be the minimum investment that should be made to the TSP; as of June 30, 2023, 86.7% of FERS employees were contributing 5% or more to a TSP account.

For 2024, the TSP contribution limits are a $23,000 annual elective deferral limit and a $7,500 “catch-up” contribution limit for employees who are 50 in 2024 or older. Less than 5% of all FERS employees make no contributions to their TSP account (other than the automatic agency 1% contributions).

FERS BASIC RETIREMENT BENEFIT

According to OPM, slightly more than 70% of the federal civilian workforce is over age 40, averaging 47.4. In fiscal year 2022, a FERS employee’s average length of service at retirement was 23.6 years.

Employees no longer have the age 55 retirement countdown clock installed on their computers as the target date for their retirement. One reason is that the retirement age for most federal employees is now closer to age 57, and many more variables impact the ability to retire with financial security than under the single-benefit CSRS system. According to OPM statistics, the average age of an employee added to the retirement rolls in 2022 was, in fact, 62. Nearly 99% of full-time equivalent employees were covered under FERS retirement at the end of fiscal year 2022.

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To qualify to retire under FERS, minimum age and service requirements must be met.

Generally, if an employee has reached the minimum retirement age (MRA) of 57 (for those born before 1970, the age is between 55 and 57), a minimum of 30 years of creditable service is required to receive an immediate, unreduced retirement benefit. Employees may also qualify for immediate unreduced benefits at age 60 with at least 20 years of service and at 62 with five or more years.

With at least 10 years of service, a reduced benefit is payable as early as the MRA. However the reduction is 5% every year under age 62 (pro-rated by the month). To avoid the age reduction, you can postpone your application for retirement or continue to work longer to meet one of the other requirements for unreduced benefits.

The unreduced benefit under FERS is computed by multiplying the years and months of creditable service by 1% of the high-three average salary (1.1% if the employee retires at age 62 or older with at

Reduced Social Security retirement benefits are payable as early as age 62, while full, unreduced Social Security retirement benefits are payable at age 67.

NARFE Webinars

Answers for the Federal Community Don’t miss these webinars!

THURSDAY, APRIL 25, 2 P.M. ET Key Questions You Need to Answer As You Approach Retirement: PART 1 THURSDAY, MAY 2, 2 P.M. ET Key Questions You Need to Answer As You Approach Retirement: PART 2 THURSDAY, JUNE 20, 2 P.M. ET Retirement Processing Prep THURSDAY, JULY 25, 2 P.M. ET Thrift Savings Plan: Should I Stay or Should I Go? Online Q&A sessions follow each webinar. For details and to register, visit NARFE.org/Institute.

NARFE FEDERAL BENEFITS INSTITUTE

Questions? Members can call 800-456-8410 x2 or email NARFE’s federal benefits specialists at fedbenefits@narfe.org.

Not a member? Join NARFE today at NARFE.org/Join.

NARFE MAGAZINE www.NARFE.org

39

from prior service appointments and made deposits for federal civilian service before 1989 that FERS deductions did not cover.

• If you separate from federal service prior to meeting the requirements for immediate retirement, a deferred retirement may be payable as early as your MRA if you have at least 30 years of creditable service, at age 60 if you separated with 20 or more years of service, and at age 62 with five years or more.

• Employees who leave before their MRA with at least 10 years of service may apply for a deferred retirement as early as their MRA if they are willing to take the age reduction mentioned above.

SOCIAL SECURITY AND THE FERS SPECIAL RETIREMENT SUPPLEMENT

least 20 years of service). Unused sick leave hours may be converted to service credit and added to the computation of the benefit payment. An additional retirement supplement may be payable to bridge the gap between retirement and age 62 when employees are too young to receive Social Security retirement.

There are special provisions to allow for earlier retirement for certain employee groups, such as law enforcement officers, firefighters, and air traffic controllers who are subject to mandatory retirement ages.

Other considerations for the FERS basic benefit include: • Additional reductions to your FERS benefit include survivor benefit elections, former spouse apportionment, and pro-ration for a work schedule other than full-time that may have occurred during your career.

• Withholdings for federal income tax, state income tax (if applicable), and insurance (FEHB, FEGLI, FEDVIP, and FLTCIP).

• To ensure that you receive the benefit that you’ve earned, confirm that all your service has been properly documented and that you’ve paid deposits due for military service credit, refunded FERS contributions that may have been taken 40

NARFE MAGAZINE MAY 2024

Rounding out the three parts of FERS is Social Security. When the Social Security law was amended to cover federal employees hired after 1983, a need was created for a retirement system that would accommodate Social Securitycovered employees. When Republicans took control of the Senate 1981, Sen. Ted Stevens, R-AK, made a commitment to design a new retirement plan for federal employees that would include Social Security. Stevens worked closely with the Congressional Research Service and outside experts regarding plan design and cost estimates and with leaders of employee groups, including NARFE, regarding acceptability. In September 1982, Stevens introduced S. 2905, a bill to cover new employees

by Social Security and to establish a modest defined benefit plan and a generous thrift plan.

As you may know, reduced Social Security retirement benefits are payable as early as age 62 while full, unreduced Social Security retirement benefits are payable at age 67 for individuals born in 1960 or later. In creating FERS and to make retirement benefits available close to when they were payable under CSRS, Congress had to create a bridge payment between the FERS MRA of 55 to 57 and age 62. This came in the form of a supplement equal to estimated Social Security benefits at age 62 that are attributable to federal civilian service.

As it became known, the FERS Special Retirement Supplement is a temporary benefit included in the monthly FERS Basic Retirement Benefit and

paid by OPM to FERS employees who retire with immediate, unreduced benefits under age 62.

One of the differences in how Social Security benefits are computed compared with federal retirement is that SSA benefits are tilted to provide a greater income replacement for lower-paid employees, while CSRS and FERS benefits are computed at the same percentage level, regardless of the salary rate.

For example, an employee with a high-three average salary of $60,000 who retires with 30 years of service at age 62 will receive 33% of $60,000 or $19,800/year (33 x 1.1% x $60,000), and an employee with a high-three average salary of $150,000 who retires with 30 years of service at age 62 will also receive 33% of their high-three average salary, but with the higher salary rate, the benefit would be 30 x 1.1% x $150,000 = $49,500/year.

The Social Security retirement benefit for a worker retiring at age 62 in 2024 who always earned average wages ($69,455 in 2023) would receive a monthly benefit of $1,668/month or a little more than $20,000/year, which is a replacement of a little less than 30% of their final salary rate, while a worker earning the maximum taxable wage since age 22 (the 6.2% FICA tax is withheld on wages up to $168,600 in 2024 up from $160,200 in 2023) would receive a monthly benefit of approximately $2,694/month or more than $32,000/year, but this only replaces around 20% of their $160,200 wage in 2023, and even less if their wages were higher than the maximum taxable amount. The maximum taxable wage cap also limits Social Security retirement benefits. It is important for employees to understand this “tilted” formula for Social Security so that higher wage earners know the greater importance their retirement savings will have in their retirement security.

Of course, not everyone applies for Social Security benefits at age 62. The full retirement age for Social Security retirement is 67 for those born in 1960 or later. There is a substantial difference in the benefit payments at 62 compared to 67 or even age 70. Careful consideration should be given to claiming Social Security retirement based on you and your family’ needs, and the future financial risk that can be associated with longevity. If you plan to work after age 62, there is an earnings limit that may reduce or even terminate your benefit if you earn more than the dollar limit. For 2024, the earnings limit is $22,320/year ($1,860/month) for beneficiaries under their full retirement age.

The Social Security benefit is reduced by $1 for every $2 earned over this limit. The year you reach your full retirement age, the limit is increased to a higher amount ($59,520/year or $4,960/month for 2024). It only applies to earnings for the months before reaching your full retirement age with a $1 reduction for every $3 over the limit. Beginning the month you reach your full retirement age, the limit no longer applies.

If you’re receiving Social Security retirement benefits, some family members may also qualify to receive benefits on your work record. These include your spouse and your unmarried children under 18.

Benefits may also be payable to a child older than 18 if they are still in high school (only until 19) or if disabled from a disability that started before age 22. If you are divorced, your ex-spouse can receive benefits on your record (even if you’ve remarried) if your marriage lasted 10 years or more, your ex-spouse is unmarried and 62 or older, and their benefit earned on their own work record is less than the one you earned for them. This benefit may be payable if you are entitled to retirement or disability benefits, even if you’re not currently receiving those benefits.

THE BOTTOM LINE

To determine if you can afford to retire, a FERS employee must consider the value of their FERS retirement benefit, Social Security entitlement and potential income that can be created from retirement savings. You may also have other pension benefits from military service or work in the private sector or through state or local government employment.

After considering withholdings for insurance and taxes, if this income replaces enough of your working wages to live comfortably, then you can set a date for beginning your life after retirement. Learning how to plan for retirement also makes it easier to navigate the “what-if” situations such as, “What if I become disabled?” or “What if I need to retire early to become a caregiver or have health problems of my own?”

Of course, if you are enjoying your career in good health and are not mentally ready to make this change in your life, then at least you know you will be financially ready when you decide that the time is right for this transition.

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

NARFE MAGAZINE www.NARFE.org

41

NARFE’S BIENNIAL NATIONAL CONFERENCE

AUGUST 18-20 HYATT REGENCY ST. LOUIS AT THE ARCH

THE EFFORT TO ADVANCE NARFE’S MISSION STARTS WITH YOU. JOIN US for FEDcon24, NARFE’s biennial national training conference. Gain the knowledge necessary to LEARN how to make the most of your benefits, ADVOCATE to protect those earned benefits, and LEAD the organization that defends them into the future.

Register today at fedcon.narfe.org.

FEDCON24 BREAKOUT SESSION PREVIEW

Attendees will choose from at least six options during each breakout session timeslot, with session tracks for Advocacy, Current/Active Federal Employee, Federal Benefits, NARFE Leadership, and Lifestyle. Examples of sessions within featured tracks are listed below:

ADVOCACY TRACK

Learn the latest updates on NARFE’s advocacy efforts, and how you can get more involved at the grassroots level and with NARFE-PAC. Advocacy Update: What’s the Latest and What’s Ahead Evolving Advocacy: NARFE’s Grassroots Toolbox for Today and Tomorrow Leading NARFE-PAC in 2024 and Beyond

NARFE LEADERSHIP TRACK

Identify and develop skills through training focused on bettering both NARFE chapters and members in these leadership track sessions.

Session topics are tentative until confirmed, and additional topics may be added.

Membership Recruitment Leadership Succession Planning Chapter Officer 101 Best Practices for Chapter/Federation Communication Utilizing the AMS as a Chapter/Federation Officer

FEDERAL BENEFITS TRACK

Listen to NARFE’s top federal benefits experts, Tammy Flanagan and Mark Keen, as they provide guidance on critical federal benefits topics.

Don’t Fall for These Common Retirement Myths Getting Your Affairs in Order: Estate Planning for Feds Maximizing the After-Tax Value of Retirement Savings Medicare & FEHB/PSHB

CURRENT/ACTIVE FEDERAL EMPLOYEE TRACK Explore how to take advantage of your federal career before retirement through this track of active employee-catered sessions.

The Final Steps: Transition From Employee to Annuitant Financial Planning for Feds

LIFESTYLE TRACK

Focus on your personal life with a purpose as you listen to experts navigate some of the concerns and interests that arise as you progress through the stages of life in this lifestyle centered track.

FEDCON24 SPEAKER SPOTLIGHT KEYNOTE SPEAKER: ALEX SHEEN Founder of because I said I would Alex Sheen is the founder of because I said I would, a global social movement and nonprofit dedicated to bettering humanity through promises made and kept, created in memory of his father, whose word was his bond. He will draw on inspiring, real-life examples and messages to not only encourage attendees to make—and keep— promises to take action, but also motivate others to volunteer in support of NARFE and its missions.

TREVA DARICE SMITH President of Career Development and Business Etiquette Consulting, LLC Treva Darice is a human resources, diversity and inclusion, and business operations professional, with over 34-years helping individuals navigate their career paths through challenges and failures to success. She specializes in career planning and personal branding, and is certified to instruct Business Etiquette through the distinguished Protocol School of Washington. Additionally, Treva is a certified Global Career Development Facilitator through National Employment Counseling Association, and licensed and certified to administer Myers Briggs assessments.

MIKA J. CROSS Workplace Transformation Strategist Mika Cross is best known as a transformational workplace expert who has dedicated over 25 years of her career to making the world of work, work better.

She works with government agencies, private and public sector leaders, and the workforce to help them adapt to the changing needs and demands of the modern work environment. She is driven by a vision of fostering a culture of innovation, collaboration, and inclusion for high-performing teams, working in a mix of on-site, remote or hybrid work environments.

MARK KEEN

TAMMY FLANAGAN

Financial planner helping feds plan for retirement

Federal benefits and retirement expert

Book your hotel by July 19 in order to take advantage of NARFE’s special group rate of $130 per night.

REGISTER TODAY at fedcon.narfe.org

Managing Money

D

A Not-So-Subtle Change to TSP Beneficiary Rules uring a recent estate planning webinar I presented for NARFE, I discussed the Thrift Savings Plan (TSP) beneficiary rules and highlighted certain nuances TSP

participants should be aware of. Following the presentation, a NARFE member contacted me about a change in the way the TSP handles contingent beneficiaries.

Before transitioning to the new service provider in 2022, TSP participants had linked contingent beneficiaries to specific primary beneficiaries.

Consequently, if a primary beneficiary passed away before the TSP participant, the deceased primary beneficiary’s share would be distributed to the linked contingent beneficiary. The distribution to the contingent beneficiary would occur regardless of the existence of other primary beneficiaries at the time of the TSP participant’s death.

Consider the example of Betsy, a widow with two children, John and Alice, and four grandchildren – two from John and two from Alice. Betsy designates John and Alice as the primary beneficiaries, each receiving 50%. The four grandchildren are designated as contingent beneficiaries, with John’s two children linked as contingents to him (50% each) and Alice’s two children linked as contingents to her (50% each).

If one of Betsy’s children passes away before her, the share of the deceased child will be distributed to their two children as contingent beneficiaries. For instance, if John predeceases Betsy, Alice will receive 50% upon Betsy’s death, and each of John’s

44

NARFE MAGAZINE MAY 2024

UNDER THE NEW TSP BENEFICIARY RULES … CONTINGENT BENEFICIARIES ARE NO LONGER LINKED TO SPECIFIC PRIMARY BENEFICIARIES.

two children will receive 25% (50% of John’s share).

Under the new TSP beneficiary rules, however, contingent beneficiaries are no longer linked to specific primary beneficiaries.

If a primary beneficiary predeceases the TSP participant, the primary beneficiary’s share will be distributed among the remaining primary beneficiaries.

Contingent beneficiaries will only receive a payment if all primary beneficiaries are deceased.

Applying the new rules to Betsy’s case, if John predeceases Betsy and Alice is still living at the time of Betsy’s death, Alice will receive 100% of Betsy’s TSP, and John’s children will be disinherited.

It’s important to note that any valid beneficiary designation submitted before June 1, 2022,

will still be honored under the old rules.

The new TSP rules are not unusual. In fact, most financial institutions will only pay out an account to contingent beneficiaries when all primary beneficiaries are deceased. However, many financial institutions allow a per stirpes designation, which, unfortunately, is something the TSP doesn’t allow.

Per stirpes, a Latin phrase meaning “by roots” or “by branch,” stipulates that if a beneficiary predeceases the account owner, the deceased beneficiary’s share will be divided equally among the beneficiary’s descendants.

When a per stirpes designation is used, and a primary beneficiary predeceases the account owner, the primary beneficiary’s share will be distributed equally among his or her descendants rather than the remaining primary beneficiaries.

Interestingly, while the TSP does not allow per stirpes designations when a participant names individual beneficiaries, the TSP’s order of precedence, which comes into play in the absence of a valid beneficiary designation, applies a per stirpes payout when the TSP is to be distributed to a participant’s children.

For example, according to the TSP’s order of precedence, the participant’s spouse is entitled to the participant’s TSP, but if there’s no living spouse, then the TSP is distributed “to the participant’s child or children

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

equally, with the share due any deceased child divided equally among that child’s descendants.”

See the TSP booklet “Death Benefits” for the complete order of precedence.

In certain situations, like Betsy’s, a TSP participant may want to rely on the order of precedence so the distribution to their descendants is on a per stirpes basis. In the past, participants were allowed to cancel all previous beneficiary designations without naming new beneficiaries and, in turn, rely on the order of precedence.

Unfortunately, the new rules no longer allow TSP participants to cancel prior beneficiary designations without assigning a new beneficiary.

In other words, participants can no longer opt for the statutory order of precedence if they have previously designated a beneficiary.

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If the TSP beneficiary rules do not align with your objectives, you may consider discussing your options with an estate planning attorney. They can advise you on the feasibility of using a trust to manage the distribution of your TSP or moving it to an IRA custodian that allows you to distribute your account as you wish.

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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NARFE MAGAZINE www.NARFE.org

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NARFE News

GET NARFE MERCH

NARFE Reaches $16 Million Alzheimer’s Fund Goal

N

ARFE is pleased to announce that it has surpassed $16 million in fundraising contributions in the fight against Alzheimer’s. This milestone was achieved

following the final tally of receipts from nationwide Walk to End Alzheimer’s events held in 2023.

Through February 29, 2024, NARFE has raised a grand total of $16,151,050.73 for the cause.

Since 1983, NARFE contributions have helped fuel Alzheimer’s Association care, support and research programs, and have included sponsorship of 94 research grants examining wide-ranging, disease-related research.

During this time, NARFE has distinguished itself as one of the Alzheimer’s Association top research funders.

“We’re extremely proud of this accomplishment in our

continued efforts to find a cure,” said NARFE National President William Shackelford. “We remain steadfast in our fundraising commitment in helping change the trajectory of Alzheimer’s disease in this country.”

The success of NARFE’s latest Alzheimer’s Fund milestone is not only from members’ regular donations, but also from planned giving, such as through wills and estates, the Walk to End Alzheimer’s events held nationwide by dedicated NARFE chapters, and awareness events held on June 21, The Longest Day.

ShopNARFE is the official online store offering NARFEbranded merchandise like T-shirts and hats. Chapters can purchase business cards for officers as well as table covers with the NARFE logo for events. A portion of the proceeds from all purchases supports the organization.

Shop now at www.narfe.org/ shopnarfe.org.

“By raising more than $16 million to date for the Alzheimer’s Association, NARFE has funded critical research toward treatment, prevention and, ultimately, a cure for Alzheimer’s and all other dementia while also providing vital funding for our care and support services through their participation in Walk to End Alzheimer’s®,” said Joanne Pike DrPH, Alzheimer’s Association president and CEO. In March, NARFE announced its new fundraising goal, pledging it will raise another $1 million for the Alzheimer’s Association by December 2026.

To help NARFE’s Alzheimer’s Fund reach its next milestone, donate online at www.alz.org/. narfe or using the donation form on Page 31 of this magazine.

—BY MATTHEW SANDERSON, CONTENT MANAGER

PHOTOS: NARFE TEAMS PARTICIPATE IN THE WALK TO END ALZHEIMER’S from https://act.alz.org/site/TR?company_id=116140&pg=national_company&pw_id=15048 46

NARFE MAGAZINE MAY 2024

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)

NARFE News

NARFE Welcomes Social Media and Marketing Manager

D

estiny Harkless has joined NARFE as the Social Media & Marketing Manager.

Destiny is a graduate of Bowie State University, with a bachelor’s degree in business administration with a concentration in marketing.

She is no stranger to the world of marketing and social media.

From not knowing what career path to take when enrolling in college, she found passion in the rewarding and challenging field of marketing from her college advisor.

Although she has honed her skillset in social media

marketing, Destiny has proven to be open-minded and committed in stepping outside her comfort zone to acquire new skills both in and outside of marketing.

In addition to her professional accomplishments, Destiny is passionate about various hobbies.

During her spare time, she enjoys cooking delicious recipes, hitting the dance floor with her impressive moves, and staying fit through regular workouts.

Born and raised in Maryland, Destiny is a proud seafood lover and is a fan of the Baltimore Ravens.

“The reason I joined NARFE was because of my alignment

2024 CONFERENCES & EVENTS Information as of March 18, 2024: CONNECTICUT: conference October 10, Marriott Courtyard, 4 Sebethe Dr, Cromwell. Contact Federation President Rich Quintero, ricardoquintero@comcast.net, for more information.

GEORGIA: conference June 6, Courtyard by Marriott Conference Center, 589 Carl Vinson Parkway, Warner Robins. Visit www.ganarfe.org for information.

ILLINOIS: conference September 17-19, Thelma Keller Convention Center, 1202 N. Keller Drive, Effingham. Contact Convention Chair Linda Glasgow, glasgowljg43@aol.com, or visit www.narfe.net/site/IL/ for information.

IOWA: conference September 17-18, Meskwake Conference Center, Tama. Contact Federation President Dorman Otte, dormanotte@gmail.com, for information.

MASSACHUSETTS: virtual conference May 2. Contact Massachusetts Federation Secretary Gene Holt, wgholtjr@verizon.net, or visit www.narfe.net/ma for information.

MICHIGAN: conference May 21-23, Tawas Bay Beach Resort & Conference Center, 300 E Bay St, East Tawas. In-person election of Federation officers will be conducted May 22. Contact Federation President Joseph Desira, videojoe2@yahoo.com, for information.

MONTANA: virtual conference June 3, https://us06web. zoom.us/ (Meeting ID: 635 841 4157, Passcode: fC33rB).

Election of Federation officers will be conducted by

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NARFE MAGAZINE MAY 2024

with the organization’s and communications department’s goal: growth.” She believes that growth is essential and the foundation of success in one’s career and life.

“I am grateful to have come across such opportunities within NARFE and look forward to this next chapter of my career.”

—BY MATTHEW SANDERSON, CONTENT MANAGER

mail April 1-May 13. Contact Federation President Leland “Wally” Walbruch, leland.walbruch@gmail.com or 406334-3880, for information.

NEBRASKA: virtual conference May 10. Contact Federation President Harold Klaege, hlklaege@gmail. com, for information.

NEW HAMPSHIRE: conference October 30, Holiday Inn Concord Downtown Hotel, 172 No. Main St, Concord.

Visit www.narfe.org/NH for information.

NEW YORK: conference May 22, Century House, 997 Loudon Road, Latham, NY. Contact Federation Secretary Diane Gawron, dennisamherst@gmail.com, or visit www.narfenewyork.org for information.

OREGON: conference May 12-14, Best Western Plus Agate Beach Inn, 3019 N Coast Hwy, Newport.

Contact Federation President Ruthann Couch, couchruthanngene@centurylink.net, for information.

PENNSYLVANIA: conference and general membership meeting May 19-24, Red Lion Hotel Harrisburg Hershey, 4751 Lindle Road, Harrisburg. Contact Federation President Richard Zuck, rzuck@neo.rr.com, or visit www. narfe.net/site/PA/ for information.

SOUTH DAKOTA: conference May 17-18, Ramkota Hotel/Convention Center, Pierre. Visit www.narfe.org/ SD for information.

WEST VIRGINIA: conference May 15-16, Best Western Plus, 100 Lodgeville Road, Bridgeport, WV 26330. Contact Federatin President Bill O’Field, wofieldwvnarfe@gmail.com, for information.

NARFE MEMBER BENEFITS

Active and Retired Federal Employees– Join NARFE (or Renew) Today!

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

Who Should Join NARFE? If your future security is tied to federal retirement benefits—federal retirees, current employees, spouses and individual survivors—you should join NARFE. Membership expiring? Renew now!

• Understand benefit changes and key aspects to stay on top of with NARFE’s monthly webinars, held on a variety of topics such as TSP’s, health insurance options and long term care insurance updates • Direct access to Federal Benefits Institute experts who can answer your most pressing questions and help you get answers you need from OPM • Topical and robust articles on new legislation, and topics like car buying tips and finding your path in retirement, and the ever popular Q&A section addressing your most burning benefit questions in NARFE Magazine • Support from your peers with access to FEDHub, the only national online community for the federal community, and local chapters, where you can meet feds in a neighborhood near you • Weekly news roundup email called Newsline, with helpful tips and updates from NARFE on the work we are doing to support you • Discounts on popular national brands with NARFE Perks • Powerful advocacy and alerts to take action on important legislation pending in Congress and our advocacy team that protects your benefits every day!

NARFE MEMBERSHIP APPLICATION

1Q6

PAYMENT OPTIONS

o Yes. I want to join NARFE for o Renew my membership the low annual dues of $48

o Check or Money Order (Payable to NARFE) o Charge my: o MasterCard o VISA o Discover o AMEX

o Mr. o Mrs. o Miss o Ms.

________________________________________________ Card No.

_____________________________________________________ Full Name

Expiration Date _______/_______ (MM/YY)

_____________________________________________________

________________________________________________

_____________________________________________________

________________________________________________

_____________________________________________________

________________________________________________

Street Address City

Apt./Unit

State

ZIP

Phone

_____________________________________________________ Email

_____________________________________________________ Retirement date (or expected)

_____________________________________________________ Membership ID if renewing (ID # can be found on cover of magazine)

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

o Please enroll my spouse _____________________________________________________ Spouse’s Full Name

_____________________________________________________

Name on Card Signature Date

TOTAL DUES $48 annual dues x ________=_________ per person

#enrolling

total dues

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

LOOKING TO MEET OTHERS in the federal community? Go to www.narfe.org/chapters to find a chapter near you.

Are you a new member who wants to receive a FREE one-year chapter membership? Choose one: o Chapter closest to home OR o Chapter #____________ Renewing members can call 800-456-8410 x1 to inquire about your chapter dues amount or to join a NARFE chapter today.

Spouse’s Email

THANK YOUR RECRUITER Did someone introduce you to NARFE? Please provide their name and member ID. THREE EASY WAYS TO JOIN/RENEW 1. Complete this application and mail with your payment to NARFE Member Services / 606 N Washington St / Alexandria, VA 22314-1914.

2. Join online at www.NARFE.org.

3. Call 800-456-8410, Monday through Friday, 8 a.m. to 5 p.m. ET.

________________________________________________ Recruiter’s Name

________________________________________________ Recruiter’s Membership ID

NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members. Some NARFE member benefits are provided by third parties (NARFE Perks), and not NARFE.

NARFE MAGAZINE www.NARFE.org

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Use your NARFE Perks and your membership will more than pay for itself!

See how much you can save at www.NARFE.org/memberperks

PRODUCTS BMG Money | https://www.narfe.org/narfe-perks-for-members/bmg-money/

BMG Money is the better loan solution for federal government employees and retirees who are working on improving their credit scores. Apply in minutes regardless of credit score with instant funding available. All credit scores are encouraged to apply with higher acceptance rates.

NEW!

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 | www.PurchasingPower.com/NARFE

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.

WELLNESS Active&Fit Direct | https://www.narfe.org/narfe-perks-for-members/activefit-direct/

Stay active from anywhere for $28/mo. Active&Fit Direct includes 12,200+ Gyms, 9,300+ On-Demand Videos and 1:1 Well-Being Coaching. A fitness program with no annual fees and no long-term contracts. Switch gyms anytime. Membership options for your spouse. No Enrollment Fee With Promo Code: FALLFITNESS

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.

R

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

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

Operator code BKHN075.

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 1-800-GOT-JUNK? | 800-468-5865 | www.narfe.org/1-800-got-junk

NARFE Members Save 10% with 1-800-GOT-JUNK? Do you have old furniture, appliances, electronics, construction debris, yard waste or other junk you need to make disappear? 1-800-GOT-JUNK? can take away almost any material we can fit in our trucks, without you ever lifting a finger—all you have to do is point! Use code NARFE10 when you book. To get started, give us a call or book online.

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 topquality 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.narfe.org/gocollette

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

INSURANCE

AMBA

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

Designed exclusively for NARFE members, (plans administered by AMBA Administrators, Inc.) Senior Age Whole Life Insurance, Senior Term Life Insurance, Hospital Indemnity 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 toprated 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.

ADDITIONAL PERKS

The Way We Worked

Securing the U.S.-Mexico Border The nearly 2,000-mile U.S.-Mexico Border is the most heavily trafficked border in the world. Every year, hundreds of millions of people cross the border, along with millions of tons of goods, food, and other cargo.

Since its establishment in 1924, U.S. Border Patrol has been the main enforcement arm of the federal government along all U.S. borders. In August 2006, President George W. Bush visited the U.S.-Mexico border to promote his set of immigration and security policies. While this photograph shows U.S. Border Patrol personnel, several federal and state agencies are responsible for border security in Texas.

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

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NARFE MAGAZINE MAY 2024

DID YOU KNOW? President Franklin D. Roosevelt combined the Bureau of Immigration and the Bureau of Naturalization into the Immigration and Naturalization Service in 1933. The first Border Patrol Academy opened as a training school at Camp Chigas, El Paso, in December 1934. Thirty-four trainees attended classes in marksmanship and horsemanship.

Although horses remained the transportation of choice for many years, by 1935, the Border Patrol began using motorized vehicles with radios. Rugged terrain and the need for quick, quiet transportation guaranteed that horses would remain essential transportation to the Patrol even to the present day.

Visit https://www.cbp.gov/bordersecurity/along-us-borders/history

Region IX 2024 Key Events: Symposium and Elections Symposium: NARFE and Its Future October 24-26 Three Rivers Convention Center Kennewick, Washington

INVITED – All Alaska, Idaho, Montana, Oregon and Washington members DAY ONE – PM HALF DAY AFTERNOON – Federation annual meetings (Idaho, Montana and Washington) and FEHB and PSHB plan reps onsite EVENING – FEHB and PSHB plan reps onsite and social time DAY TWO – ALL DAY MORNING/AFTERNOON – NARFE headquarters speakers; information sessions EVENING – Social time, banquet, entertainment DAY THREE – AM HALF DAY MORNING – Additional speakers and information sessions

ELECTIONS: Region IX and

Washington State Federation Candidates are needed for Region IX VP. For information about this position, contact current Region IX VP Steve Roy at stevenroy1@yahoo.com or 425-344-3926.

The Washington State Federation (WSF) will be conducting federation-level elections during the summer. Candidates are needed for all positions. For information about these positions, contact WSF President Cray Henry at wsf.cray.henry@gmail.com or call 571-512-0476.

More Symposium and Election Information For more symposium and election information, go to the Washington State Federation website at www.narfe.org/wa/, visit your federation’s FEDHub community or contact Region IX VP Steve Roy at 425-344-3926.

Members are needed to serve in elected positions. Please consider serving.

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