August 2024 NARFE Magazine

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

AUGUST 2024 VOLUME 100 ★ NUMBER 6

P. 24

Going Into Retirement With Student Loan Debt

P. 34 Harnessing the Power of Grassroots Advocacy Special Sections P. 48 B ylaws and Standing Rules Amendments

P. 51 F inancial Statements

Membership has its benefits.

As part of your membership with NARFE, you and qualifying family members have opportunities to save on senior living. You may be eligible for exclusive discounts that can help you and your family get the lifestyle and care you deserve.

SENIOR LIVING:

7.5

% OFF

monthly fee/basic service rate*

IN-HOME SERVICES:

10

SHORT-TERM STAY: DISCOUNTED RATES VARY

%

% OFF service rate**

by community***

Call us at (866) 787-9775 or drop in for a visit and mention NARFE to learn more.

For more details, visit brookdale.com/NARFE. Applicable to all discounts: Residents under a Life Care Agreement are not eligible for the discounts. These discounts do not apply to any room, board or services which are paid for all or in part by any state or federally funded program. Discounts are available to members and their family members, including spouse, adult children, siblings, parents, grandparents, and corresponding in-law or step adult children. Subject to availability. Discounts cannot be combined with any other offer or discount. Further restriction may apply. * The Senior Living discount is only applicable to new residents of a Brookdale independent living, assisted living, or memory care community admitting under an executed residency agreement. Discount applies only to the monthly fee/basic service rate, excluding care costs and other fees and is calculated based on the initial monthly fee/basic service rate. ** The In-Home Services discount is only applicable to new clients of personal assistance services by a Brookdale agency under an executed service agreement. *** A Short-Term Stay discount is only applicable to new residents of a Brookdale assisted living or memory care community admitting under an executed respite agreement. Discount applies to the daily rate.

1135200 SR

©2024 Brookdale Senior Living Inc. All rights reserved.

BROOKDALE SENIOR LIVING is a registered trademark of Brookdale Senior Living Inc.

Contents AUGUST 2024

COVER STORY PAGE 24

FEATURE PAGE 34

GOING INTO RETIREMENT WITH STUDENT LOAN DEBT Don’t let student loan debt ruin your retirement plans. We cover scenarios and repayment options.

HARNESSING THE POWER OF GRASSROOTS ADVOCACY Reach your lawmakers during this pivotal congressional recess, and 2024 general election season, with a revamped approach.

Special Features

Columns

48 Bylaws and Standing

4 From the President

Rules Amendments

51 Financial Statements

22 Benefits Brief

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

AUGUST 2024 VOLUME 100 ★ NUMBER 6

P. 24

Going Into Retirement With Student Loan Debt

42 Managing Money

Washington Watch

8 House and Senate Hold

Hearings on WEP and GPO

9 OPM Regulation on Postal

Service Health Benefit Program Confirms Medicare Rules

10 House Hearing Examines OPM Operations

10 Lawmakers Support Cuts to Federal Benefits

11 OPM Issues Final Rule to

Safeguard Merit Principals

12 D OL Finalizes Rule to Protect Retirement Saves

Departments

P. 34 Harnessing the Power of Grassroots Advocacy

6 NARFE Online 18 Questions & Answers

Special Sections P. 48 Bylaws and Standing Rules Amendments

P. 51 Financial Statements

ON THE COVER Illustration by TGD

19 Countdown to COLA 44 NARFE News 48 Bylaws and Standing Rules Amendments

51 Financial Statements 62 NARFE Perks 64 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

13 Bill Tracker NARFE MAGAZINE www.NARFE.org

1

AUGUST 2024 VOLUME 100 ★ NUMBER 6

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

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:

EMAIL fedbenefits@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 (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

NARFE HEADQUARTERS

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

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

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

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.

2

NARFE MAGAZINE AUGUST 2024

Great savings options for federal retirees Turning 65 comes with perks.

If you’re retired and haven’t switched your plan, contact us to find out more about two Aetna® plans designed for Federal retirees.

Connect with our team at AetnaFedsLive.com where you can:

Chat online Schedule a one-on-one appointment Participate in live webinars

Or, if you’d like to research on your own, our retiree portal is designed just for you.

Visit AetnaFeds.com/retireeplans to �nd out more about plans with things like:

• $0 deductibles and copays • Low premiums

• Prescriptions as low as $0 • Up to $1,200 for each eligible member to help lower your costs

Health insurance plans are offered and/or underwritten by Aetna Life Insurance Company (Aetna). This is a brief description of the features of this Aetna health insurance plan. Before making a decision, please read the plan’s applicable federal brochure(s). All benefits are subject to the definitions, limitations and exclusions set forth in the federal brochure. Plan features and availability may vary by location and are subject to change. Aetna does not provide care or guarantee access to health services. For more information about Aetna plans, refer to AetnaFeds.com/retireeplans ©2023 Aetna Inc. 19.12.345.1 A (9/23)

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.

NARFE Stays Very Busy in August FEDCON24

In 2008, I planned to attend my first NARFE National Convention in Louisville, KY. Fast-forward 16 years, and I am looking forward to welcoming everyone to NARFE’s premier biennial national training conference, FEDcon24, in St. Louis.

I know you may have heard this before.

FEDcon24 is poised to be a pivotal moment in NARFE’s history. Our planning efforts, which have been in the works since our last conference, are designed to resonate with both returning attendees and those joining us for the first time. This is not an event to be missed.

The conference will kick off with opening keynote speaker Alex Sheen, founder of the global nonprofit because I said I would. Alex will set the tone for our conference with a message that coincides with the FEDcon24 theme LEARN– ADVOCATE–LEAD. It will be a perfect kick-off to an event that will focus on providing NARFE leaders with training, resources and information to energize all members to 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 those benefits into the future.

Membership loss can be attributed to various factors, including competition, changing consumer preferences, and ineffective or nonexistent marketing strategies. To address the brand awareness issue, we have initiated a full-scale national marketing plan. In association with professionals knowledgeable of the federal workforce, all stakeholders, federations, chapters, and the headquarters staff, the plan will focus on identifying potential new members. The overall goal is to improve NARFE’s brand within the federal community, making it a household name.

GRASSROOTS ADVOCACY

During August, NARFE members usually have the opportunity to see their members of Congress and senators during the congressional recess. Many lawmakers hold town hall-style meetings in their districts or states to hear from their constituents; NARFE members can use this opportunity to let their elected representatives know what is essential to them.

As always, I appreciate your support so we can move NARFE forward together. The future of NARFE is in our hands. I hope we can accomplish what we can to ensure its viability. Stay healthy and stay safe!

MEMBERSHIP MARKETING

FEDcon24 should also serve as the “kick-off” of our membership marketing initiative. Everyone knows that NARFE’s biggest challenge has been, and remains, brand name recognition, followed by its value proposition within the federal community.

As such, NARFE has not been successful in addressing our 38-year decline in membership. The time to act is now.

4

NARFE MAGAZINE AUGUST 2024

WILLIAM SHACKELFORD NARFE NATIONAL PRESIDENT natpres@narfe.org

Find this and other great deals on fepblue.org/blue365

Made available through:

Get more with TruHearing®.

When you use your allowance through TruHearing, it goes further with discounts on top hearing aids.

Blue Cross and Blue Shield Service Benefit Plan members also get TruHearing's unmatched service on everything from obtaining prior authorization to a dedicated Hearing Consultant.

August is wearing a custom TruHearing Premium hearing aid.

Example savings (per pair) on a few of the many brands, styles, and models available.

TruHearing Advanced

Widex® SmartRIC™ 220

Signia® 5IX

Average retail price: $5,440 TruHearing price: $2,500 Allowance: Up to $2,5001 You pay2: $0

Average retail price: $4,524 TruHearing price: $2,700 Allowance: Up to $2,5001 You pay2: $200

Average retail price: $5,800 TruHearing price: $3,390 Allowance: Up to $2,5001 You pay2: $890

Rechargeable | Listed products are smartphone compatible.3 TruHearing purchases include • 60-day, risk-free trial period • 1 year of follow-up visits • 80 free batteries per non-rechargeable hearing aid • 3-year manufacturer warranty

Call TruHearing to get started.

1-855-739-7048 | TTY: 711 Learn more at TruHearing.com/Blue365 or scan the code with your smartphone camera.

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

1

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 may be charged a maximum fee of $75 for the exam, and the member may need to submit a claim for reimbursement.

2

3 Smartphone-compatible hearing aids connect directly to iPhone®, iPad®, and iPod® Touch devices. Some TruHearing models connect to Android® phones directly. Connectivity also available to many Android phones with use of an accessory.

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

During the year, the independent vendors may offer additional discounts on these products and services. To find out what is covered under your policy, contact the customer service number on your member ID card. Any disputes regarding your health insurance products and services may be subject to your plan’s grievance process. BCBSA may receive payments from vendors providing products and services on or accessible through the Site. Neither BCBSA nor any Blue Company recommends, endorses, warrants, or guarantees any specific vendor, product or service available under or through the Blue365 Program or Site. TruHearing is offered through Blue365 which provides exclusive health and wellness deals and is a program of Blue Cross Blue Shield Association, an association of independent Blue Cross and Blue Shield companies.

All content ©2024 TruHearing, Inc. All Rights Reserved. TruHearing® is a registered trademark of TruHearing, Inc. All other trademarks, product names, and company names are the property of their respective owners. Savings and retail pricing based on a survey of national average retail hearing aid prices compared to average TruHearing pricing. Listed hearing aid prices are subject to change. Confirm hearing aid pricing at your appointment with your provider.

Retail pricing of TruHearing-branded aids based on prices for comparable aids. Follow-up provider visits included for one year following hearing aid purchase. Free battery offer is not applicable to the purchase of rechargeable hearing aid models. Three-year warranty includes repairs and one-time loss and damage replacement. Hearing aid repairs and replacements are subject to provider and manufacturer fees. For questions regarding fees, contact a TruHearing Hearing Consultant. 504400_2024_BCBS_FEP

TruHearing is an independent company that provides discounts on hearing aids.

NARFE Online SAVE MONEY ON NARFE PERKS WHETHER you are planning your next vacation or move, buying a gift or planning for retirement, members can save money on everyday purchases with special discounts from our affinity partners. Visit www.narfe.org/perks or see P. 62.

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 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.

TSP

TSP UPDATE ONLINE

MISS A WEBINAR? Catch up on past NARFE Federal Benefits Institute presentations in our webinar archive. There, you’ll find videos, slides and Q&A sessions for webinars dating back to January 2019. View them at www. narfe.org/webinar-archives.

CONNECT ON FEDHUB If you haven’t visited NARFE’s growing online community yet, now is the time to join the conversation, and start one too!

NARFE designed FEDHub to support your federal journey, leveraging the knowledge and value of our entire community— all that’s missing is you. Start talking with fellow feds at fedhub.narfe.org/ quick-start-guide.

6

NARFE MAGAZINE AUGUST 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.

TRACKING RETIREMENT CLAIMS

Find out how many retirement claims OPM Retirement Services receives and processes each month, with average processing times and total inventory at www.narfe.org/opm-processing.

Transform Your Bathroom and Change Your Life.

Safe Step Walk-In Shower

Safe Step Walk-In Tub

1,000

$

OFF *

WALK-IN SHOWER

Premium Quality, Style, & Innovation

Professional Installation Included

1 ,600 + $

OFF *

FREE SHOWER PACKAGE

Lifetime Warranty

Easy to Use

Made in Tennessee

Bubbles, Massage Jets, & More

Call Today For More Information!

1-800-988-7275 Visit BuySafeStep.com

Scan to learn more

*With purchase of a new Safe Step Walk-In Shower or Tub. Not applicable with any previous walk-in shower or tub purchase. Offer available for a limited time only while supplies last.

No cash value. Must present offer at time of purchase. Other restrictions may apply. CSLB 1082165 NSCB 0082999 0083445 13VH11096000

Washington Watch Washington Watch

House and Senate Hold Hearings on WEP and GPO

I

n April and June, subcommittees in the House and Senate held hearings to examine the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), marking new

progress in addressing these longstanding provisions unfairly penalizing public servants nationwide.

HOUSE HOLDS SECOND HEARING ON WEP/GPO

The House Ways and Means Subcommittee on Social Security held a hearing on April 16, the second time Congress held a hearing focused on these issues. With 320 cosponsors for the bill (at press time) to repeal WEP and GPO in the House and continued committee attention, momentum is building to address these longstanding issues.

While the hearing featured think tank witnesses rather than representatives from those directly impacted, NARFE National President William “Bill” Shackelford and National Secretary/Treasurer Kathryn Hensley attended the hearing in person, demonstrating steadfast support for the repeal of WEP and GPO. Shackelford submitted testimony for the record on 8

NARFE MAGAZINE AUGUST 2024

behalf of NARFE, and NARFE continues to work with the lead sponsors of the repeal bill and other allies to press for further action on WEP and GPO. The hearing focused on the significant and longstanding effects WEP/GPO have on federal retirees, citing many examples of disproportionately

affecting public servants who experience undue hardships from these provisions, which unfairly reduce the retirement benefits they have paid into for years.

The hearing included testimony from several witnesses who acknowledged how these provisions harm public servants, identifying how the outdated formulas used to calculate the WEP and GPO create unfair outcomes for beneficiaries affected by one or both policies. Witnesses and committee members also discussed solutions that

AUGUST ACTION ALERT: SUPPORT THE SOCIAL SECURITY FAIRNESS ACT, H.R. 82, MARK-UP 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 floor! With 320 cosponsors and counting at press time, this bill is closer to 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: When lawmakers are out of session, they are not focused on legislative issues, so advocacy efforts will have little impact.

REALITY: Even though lawmakers are not in Washington, D.C., when they are in “recess,” they remain engaged with legislative issues during these state and district work periods and are often looking to gather constituent feedback. This time away from the Capitol allows them to hear directly from their constituents in their localities and gather insights that can inform their positions and actions when they return to session.

advocated for more modest reforms rather than a full repeal.

Hundreds of NARFE members also added their voices by submitting written testimony, helping to strengthen the call for change.

SENATE HEARING FOCUSES ON LOCAL IMPACT

The Senate Subcommittee on Social Security, Pensions, and Family Policy held its own field hearing on the topic, focusing on its impact in Ohio.

Sen. Sherrod Brown, D-OH, sponsors S. 597, the Social

Security Fairness Act, and chairs the subcommittee.

NARFE also submitted a statement for the record for this hearing.

BIPARTISAN HOUSE CAUCUS ENDORSES BILL

In another sign of building momentum, the bipartisan Problem Solvers Caucus announced its endorsement of H.R. 82, the Social Security Fairness Act, which is the House bill to repeal WEP and GPO. The Problem Solvers Caucus, co-chaired

by Reps. Brian Fitzpatrick, R-PA, and Josh Gottheimer, D-NJ, has 62 members evenly split between Republicans and Democrats.

Both hearings and the bipartisan House caucus endorsement represent significant steps in ongoing advocacy efforts by NARFE and its allies to correct the injustices of the WEP and GPO and ensure that all public servants receive the full Social Security benefits they rightfully deserve.

—BY JOHN HATTON, STAFF VICE PRESIDENT, POLICY AND PROGRAMS

OPM Regulation on Postal Service Health Benefits Program Confirms Medicare Rules

T

he Office of Personnel Management issued its final rule on establishing the Postal Service Health Benefits (PSHB) Program on May 6, 2024.

The PSHB program starts in January 2025, with this year’s Open Season providing the first preview of PSHB plans.

The rule offered clarifications on Medicare Part B and other language. While the rule reiterated statutory provisions requiring newly eligible annuitants (retiring after January 1, 2025) who are entitled to Medicare Part A to enroll in Medicare Part B and

maintain PSHB coverage, it also made clear the exceptions NARFE advocated for in the debate over bill passage: • Anyone who is a postal annuitant on or before January 1, 2025, and is both not entitled to Medicare Part A and not enrolled in Medicare Part B on that date; • Anyone who is a postal employee and is 64 or older on January 1, 2025; • Postal annuitants and their families who reside outside of the United States and its territories and demonstrate such residency;

• Postal annuitants and their families who are already enrolled in some Veterans Affairs Department health coverage plans; • Postal annuitants and their families who are eligible for Indian Health Service benefits; and • Anyone who is a relative of a postal annuitant and is not required to enroll in Medicare Part B to be eligible for PSHB benefits based on one of the statutory exceptions noted above.

—BY NICOLE BLACKSTONE, PROGRAM MANAGER, FEDERAL BENEFITS INSTITUTE 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.

House Hearing Examines OPM Operations

O

n May 22, 2024, the House Committee on Oversight and Accountability held a hearing reviewing U.S. Office of Personnel Management (OPM) operations, featuring new acting Director Rob Shriver. NARFE National President William “Bill” Shackelford submitted a statement for the record expressing NARFE’s views.

The hearing, titled “Oversight of Our Nation’s Largest Employer: Reviewing the U.S. Office of Personnel Management, Pt. II,” focused on various issues, including federal telework policies, the threat of Schedule F, and federal retirement annuity processing. Some committee members questioned the strength of current data supporting telework policies.

Shriver discussed improvements in initial retirement claims processing and wait times for

prospective and current federal annuitants.

Shriver also pointed out that these increased office requirements are detrimental to personnel improvement, saying, “If we were to require cybersecurity professionals to come into the office five days a week, I think we wouldn’t be able to recruit the kind of workforce that we need.”

These comments came weeks after the introduction of legislation that would require federal workers to spend 60% of their hours in their offices (sponsored by Sens. Mitt Romney, R-UT, and Joe Manchin, D-W) and a bill introduced in April that would require agencies collect telework data and increase monitoring on the impact of teleworking on performance metrics (sponsored

by Sens. Gary Peters, D-MI, and Joni Ernst, R-IA).

Shriver defended the administration’s efforts to protect the merit-based civil service via its recently issued rule on the topic, intended to prevent a return of Schedule F. Committee Democrats expressed support for the rule—and legislation to prevent a future administration from reversing it. However, committee Republicans supported Schedule F, arguing it would add necessary accountability measures for federal workers, whom they view as abusing their power to thwart legal administration policies.

In NARFE’s view, existing rules and regulations or much more modest reforms would address such concerns without eliminating the merit-based civil service, as Schedule F threatens to do for a substantial segment of it.

—BY NICOLE BLACKSTONE, PROGRAM MANAGER, FEDERAL BENEFITS INSTITUTE

Lawmakers Support Cuts to Federal Benefits

T

he Republican Study Committee, led by Rep. Kevin Hern, R-OK, unveiled its fiscal 2025 budget plan on March 25, titled “Fiscal Sanity to Save America.” The proposal intends to balance the budget within seven years by slashing $17.1 trillion in spending.

It would accomplish this by significantly reducing federal workers’ retirement and health care benefits while eliminating the president’s

10

NARFE MAGAZINE AUGUST 2024

authority to provide annual pay raises to federal employees.

Additionally, their proposed budget recommends reducing or even outright removing the cost-of-living adjustments (COLAs) for Federal Employee Retirement System (FERS) and Civil Service Retirement System (CSRS) annuitants and computing retirement benefits based on the highest five years of salary rather than the highest three.

Their plan proposes drastically increasing the share of employee contributions to FERS, eliminating the FERS annuity supplement, and reducing the rate of return on the Thrift Savings Plan’s G fund to near zero. If that was not enough, the proposal also calls for using the chained Consumer Price Index to calculate COLAs for federal annuities and Social Security benefits while requiring federal

employees and retirees to pay a more significant share of health benefit premiums.

Amid the ambitious financial restructuring lies a contentious narrative regarding the future landscape of federal employment.

Implicit within the proposal is a tolerance for federal workers earning less than their private-sector counterparts,

accompanied by potential erosion of hard-earned benefits—a vision starkly opposed by NARFE. NARFE’s opposition underscores broader concerns about the plan’s potential ramifications, not only for individual employees but also for the stability and functionality of the federal workforce. Such measures

contravene core tenets of federal service and imperil the vital functions of government agencies, spanning from national defense to agricultural oversight. NARFE asserts a resolute stance against what will be an undue sacrifice of federal employees in the name of fiscal responsibility. —BY RANDALL THACKER, MANAGER, POLITICAL AND LEGISLATIVE AFFAIRS

OPM Issues Final Rule to Safeguard Merit Principles

T

he Office of Personnel Management (OPM) has officially finalized a rule to protect career civil servants from the potential reemergence of Schedule F, an initiative from the Trump administration that sought to convert a substantial

portion of federal positions into at-will positions.

Published in the Federal Register on April 4, 2024, this regulation would solidify protections for 2.2 million federal employees. Thus, it would make it significantly more difficult for any future

CONTRIBUTE TO

administration to reintroduce policies such as Schedule F. This final rule directly responds to concerns raised about the Trump-era executive order that created Schedule F, leading to a significant potential upheaval SEE OPM ON P. 12

NARFE Member #: ____________________________________ Name:______________________________________________ Address: ___________________________________________

Contribute monthly through your annuity or by credit card. Get started at narfe.org/pac-sustainer.

OR

Monthly contributors of $10 or more receive a sustainer lapel pin

Make a one-time contribution:

City: _____________________________________________ State: _________________

ZIP:__________________

Occupation: _________________________________________ Employer: ___________________________________________

q Charge my credit card q MasterCard

q VISA

q Discover

q AMEX

q $25 – Basic lapel pin

Card #: ____________________________________________

q $50 – Bronze lapel pin

Exp. Date: _____ /_________

q $100 – Silver lapel pin q $250 – Gold lapel pin q $500 – Platinum lapel pin q Other: _________ Contribution totals are cumulative for the 2023-2024 election cycle

n No pin for me. I’d like 100 percent of my contribution to go to NARFE-PAC.

Mail coupon and/or check payable to NARFE-PAC to: NARFE-PAC Budget & Finance | 606 North Washington St. | Alexandria, VA 22314

mm

yyyy

Name on Card: ______________________________________ Signature: __________________________________________ Date: _____________________

To comply with federal law, we must use our best efforts to obtain, maintain and submit the name, mailing address, occupation and name of employer of individuals whose contributions exceed $200 each calendar year. NARFE-PAC is for the benefit of political candidates and activities on a national level. NARFE members have the right to refuse to contribute without reprisal, and NARFE will neither favor nor disadvantage anyone based on the amount of a contribution or failure to make a voluntary contribution. The suggested amounts are only suggestions and not enforceable. Only members of NARFE may contribute to the PAC. Contributions from non-members will be returned. NARFE-PAC contributions are not deductible for federal income tax purposes.

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.

DOL Finalizes Rule to Protect Retirement Savings

T

he U.S. Department of Labor (DOL) announced the finalization of its Retirement Security Rule on April 23, 2024. The rule is designed to enhance protections for millions of Americans saving for retirement. The update redefines what constitutes an investment advice fiduciary under the Employee Retirement Income Security Act and the Internal Revenue Code.

The rule mandates that financial advisers act with the highest standards of care and loyalty. It also requires their advice to be relevant and free from conflicts of interest that could adversely affect retirement savers. Under the new rule, which

OPM FROM P.11

within the federal workforce. By rescinding this order, President Joseph Biden has emphasized the importance of a meritbased, nonpartisan civil service system. The regulation clarifies and reinforces longstanding protections, ensuring that civil service principles cannot be bypassed on executive whim.

NARFE National President William “Bill” Shackelford has played a crucial role in supporting OPM’s dedication to maintaining the integrity of the civil service.

“NARFE applauds OPM’s commitment to upholding merit-based nonpartisan civil 12

NARFE MAGAZINE AUGUST 2024

takes effect on September 23, 2024, financial institutions must implement stringent policies to manage conflicts of interest and ensure their advisers comply with these new standards.

This is a step forward in ensuring that all Americans are not subjected to advice that will jeopardize their retirement security. According to a recent analysis by the Council of Economic Advisers, bad advice from conflicted financial advisers on products like fixedindex annuities could cost savers up to $5 billion per year, significantly impacting longterm savings.

NARFE has joined other organizations in supporting

the DOL’s efforts through a letter to Congress highlighting the rule’s importance in safeguarding the financial security of federal retirees. The letter underscores the rule’s potential to prevent financial advisers from prioritizing their financial gain over retirees’ best interests. Thus, it would help retirees maintain more of their hard-earned savings for a secure and independent retirement.

NARFE applauds the DOL for taking this action to protect our retirees and prevent bad actors from exploiting hard-earned savings.

service and welcomes this final rule, which clarifies and reinforces long-standing protections for our public servants,” he said.

This regulation comes during an election year in which attempts to revive Schedule F policies have been discussed.

It prohibits involuntary moves from the competitive service to the excepted service from stripping employees of their civil service protections. It also establishes an appeals process for affected employees with the Merit Systems Protection Board.

In November 2023, NARFE submitted a letter in support of the proposed rule, emphasizing

the necessity for OPM to finalize these protections.

“While OPM’s actions are a step in the right direction, a rule alone cannot prevent a return of Schedule F in the future,” the letter states. “It’s up to Congress to pass legislation like the Saving the Civil Service Act to more fully protect the nonpartisanship of the civil service.”

This marks a substantial victory in safeguarding the stability and impartiality of the civil service, reinforcing the foundation for effective governance.

—BY RANDALL THACKER, MANAGER, POLITICAL AND LEGISLATIVE AFFAIRS

—BY RANDALL THACKER, MANAGER, POLITICAL AND LEGISLATIVE AFFAIRS

KEY INITIATIVES

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

H.R.159/S.59: Chance to Compete Act of 2023 / Rep. Virginia Foxx, R-NC / Sen. Kyrsten Sinema, I-AZ

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 AUGUST 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 1/8/24

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

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) H.R. 866 / S. 3194: The Equal COLA Act / Rep. Gerry Connolly, D-VA / Sen. Alex Padilla, D-CA

FEDERAL ANNUITIES

Cosponsors: H.R. 866: 47 (D) 3 (R) S. 3194: 6 (D) 0 (R) 2 (I) S. 3974: Boosting Benefits and COLAs for Seniors Act / Sen. Bob Casey (D-PA) Cosponsors: S. 3974: 5 (D) 0 (R)

NARFE’s Position:

Support

Oppose

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

Reforms the Windfall Elimination Referred to the House Committee on Ways and Means 6/21/2023 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).

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

Referred to the House Committee Reforms the WEP by providing on Ways and Means 9/5/2023 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 WEPaffected individuals (turning 62 in or after 2025).

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 Service Retirement System (CSRS) retirees.

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

Significantly adjust the calculation of COLA by basing it off of the Consumer Prive Index for Americans aged 62 or older (CPI-E) instead of the Consumer Price Index for Urban Wage Earners (CPI-W) to better reflect rising living expenses faced by the aging community

Read twice and referred to the Committee on Finance 03/19/2024

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

H.R. 536/ S. 124: The Federal Provides federal employees Adjustment of Income Rates with an 8.7% average pay raise (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. 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 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 )

LATEST ACTION(S) 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

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 Placed on Senate Legislative Calendar under General Orders.

Calendar No. 385 05/09/2024

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 a 7.4% average pay raise in 2025 on Oversight and Accountability 1/30/2024

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

NARFE MAGAZINE AUGUST 2024

Support

Oppose

No position

Become a Silver Circle Contributor Today NARFE offers members a way to give to the association’s General Fund through its donor recognition program, the Silver Circle.

Your contribution to the Silver Circle supports the direct work of NARFE as we continue to provide you resources and advocacy that you rely on and that member dues alone cannot support.

When you donate to the Silver Circle, you are ensuring that NARFE has the resources to continue to fight for the financial security and earned benefits for you and the federal community.

NARFE appreciates all financial support you provide to us and would like to recognize you for your generous contributions to our cause.

Donate now to the Silver Circle at narfe.org/silvercircle.

With NARFE’s thanks, you will receive: •

A Silver Circle pin and recognition on NARFE.ORG with a donation of $100 or more.

•

A Silver Circle pin, your name plate placed on the Silver Circle plaque at NARFE Headquarters, recognition on NARFE.ORG and recognition at the NARFE yearly conference with a donation of $1,000 or more.

To learn more about the Silver Circle donor recognition program or how to recommend an outstanding NARFE member to the Silver Circle, please visit www.narfe.org/silvercircle or email us at donatenow@narfe.org. q CHECK ENCLOSED (payable to NARFE) Enclosed is my NARFE donation: $ __________________

q Mr. q Mrs.

q Miss q Ms.

Name: ______________________________________________ Address: _____________________________________________ City: ________________________________________________ State: _______________________________________________ ZIP:_________________________________________________ Member Number: ______________________________________

FR-SILVERCIRCLE

OR CREDIT CARD INFORMATION:

q MasterCard

q VISA

q Discover

q AMEX

Card Number: _____________________________________ Expiration Date: __________(mm)/ ________ (yy) 3-Digit Security Code: __________ Date: _______________ Signature:_________________________________________ Name: (please print) _________________________________

PLEASE MAIL COUPON AND CHECK TO: NARFE, Attn: Silver Circle, 606 N. Washington St., Alexandria, VA 22314

Donations to NARFE are not tax-deductible for federal income tax purposes.

Questions Questions&&Answers Answers

Q&A

EMPLOYMENT

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.

CHOOSING A COMMENCING DATE FOR A FERS DEFERRED RETIREMENT I separated federal service at mid-career before reaching my Federal Employees Retirement System (FERS) minimum retirement age of 57.

Although I was vested with more than five years of federal civilian service under FERS, I did not qualify for immediate retirement upon separation. Since I do not expect to return to a federal job, when will I be eligible to apply for my deferred retirement, and what date should I choose for the retirement benefit to begin?

Q

The answer to your question depends upon how many years of creditable service you have.

If you have less than 10 but more than five years of civilian federal employment covered by FERS deductions, your deferred retirement is payable at age 62.

Choosing a commencing date for your retirement benefit can be a little complex if you’ve paid into FERS for more than 10 years and separated federal service before reaching your FERS minimum retirement age (MRA). The instructions accompanying the RI 92-19 application will guide you through this process, which involves selecting a “commencing date” for your retirement benefit and using Schedule C of the application. Carefully follow the instructions provided with the application.

It’s crucial to understand the age reduction calculation if you have 10 years or more service, but less than 20 years. You have the flexibility to choose when your annuity begins, giving you control over your retirement planning. It can start on the first day of any month following the month in which you reach your FERS MRA up through the second day before

A

18

NARFE MAGAZINE AUGUST 2024

your 62nd birthday (but not after reaching age 62).

Just remember, there is a reduction for your age that is computed as one-twelfth of 5% for each full month, or 5% per year, that you are younger than 62 when your FERS retirement begins.

If you have 20 years or more service but less than 30, you can choose to have your annuity begin on the first day of any month following the month you reach your FERS MRA up through the first day of the month after your 60th birthday. If you choose to have your annuity start sooner than 60, the permanent age reduction will apply based on how many months you are younger than 62. It’s important to consider this reduction when planning your retirement.

If you have 30 or more years of service, you can have your unreduced FERS Basic Retirement Benefit commence on the first day of the month after you reach your FERS MRA. Your FERS MRA is based on your year of birth.

Important Notes: 1. The applicant must file RI Form 92-19, “Application for Deferred or Responsibility

Postponed Retirement,” with OPM at least 60 days before age 62 or the date that you want the annuity to begin, if earlier. The application may be obtained at www.opm.gov/forms. Follow the instructions to guide you through this process, which involves selecting a “commencing date” for your retirement benefit and using Schedule C of the application. The decision is important and should be made with careful consideration of your personal circumstances and financial needs.

2. When a former employee with 10 or more years of service applies for a deferred annuity, they designate a commencing annuity date explained above. The designated commencing date must be: a. The first day of the month after you reach your MRA or b. The first day of the month is at least 31 days after OPM receives your application if you have reached your MRA (but before your 62nd birthday). c. A date (must be the first day of a month) within 90 days after the application is filed but d. No later than the second day before the employee’s 62nd birthday.

An election of a commencing date becomes irrevocable on the day OPM authorizes the first regular annuity payment.

CHOOSING A COMMENCING DATE FOR A FERS POSTPONED RETIREMENT

Q

After 21 years of working for the federal government with regular FERS coverage, I decided to separate from the federal service upon reaching my minimum retirement age of 57 to pursue other opportunities. Although I was eligible to apply for my retirement immediately upon separation, I postponed my application to avoid the permanent age reduction as I was under age 62 with less than 30 years of service.

Since I do not expect to return to a federal job, when will I be eligible to apply for my unreduced retirement?

As an employee with 20 years of FERS retirement coverage, you will become eligible for an unreduced “postponed” FERS Basic Retirement Benefit upon age 60.

According to the FERS “Application for Deferred or Postponed Retirement” (RI 92-19), OPM recommends that you send your application to them approximately 60 days (but no later than 31 days) before you want your benefit to begin. The instructions accompanying the RI 92-19 application will ask you to select a “commencing date” for your retirement benefit to begin using Schedule B of the application.

By separating from federal employment after reaching your MRA and having 10 or more years of

A

service (but less than 30 years), you were eligible for retirement immediately upon separation. Still, the benefit would be reduced by one-twelfth of 5% per month if you were under age 62 at separation or 5% per year.

To reinstate Federal Employees Health Benefits (FEHB) and Federal Employees Group Life Insurance (FEGLI), you must have been covered for the five years immediately preceding your separation if you wish to reinstate one or both benefits. This “five-year test” does not apply to the reinstatement of FEDVIP supplemental dental and vision coverage. OPM will send you information to reinstate these insurance benefits once they determine your eligibility.

Since you have paid into FERS for over 20 years, you can avoid the permanent age reduction penalty by simply choosing the first day of the month after your 60th birthday as your commencing date.

If you have completed more than 10 years, but less than 20, your commencing date of your FERS annuity must be at least 2 days before your 62nd birthday.

If you choose a date after your 62nd birthday, this is considered a “deferred” retirement and you will not be allowed to reinstate your insurance benefits or receive credit for your unused sick leave in the computation of your FERS benefit.

Important Notes: 1. An election of a commencing date should be filed approximately 60 days before the designated

COUNTDOWN TO COLA The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.1% in May 2024. To calculate the 2025 cost-of-living adjustment (COLA), the 2024 third-quarter indices will be averaged and compared with the 2023 third-quarter average of 301.236. The percentage increase determines the COLA. May’s index, 308.163, is up 2.29% 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

CPI-W

Monthly % Change

% Change from 301.236

OCTOBER 2023

302.071

-0.06

0.28

NOVEMBER

301.224

-0.28

-0.004

DECEMBER

300.728

-0.16

-0.17

JANUARY 2024

302.201

0.49

0.32

FEBRUARY

304.284

0.7

1.0

MARCH

306.502

0.7

1.7

APRIL

307.811

0.4

2.18

MAY

308.163

0.1

2.29

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

NARFE MAGAZINE www.NARFE.org

19

Questions & Answers commencing date; OPM recommends applying 60 days ahead of your desired commencement date.

2. You must use form RI 92-19 (Application for Deferred or Postponed Annuity) available at www. opm.gov/forms.

3. You may not elect a postponed commencing date that is earlier than the 31st day after the date the application is filed.

4. An election of a commencing date becomes irrevocable on the day OPM authorizes the first regular annuity payment.

Tips for employees who separate with eligibility for a deferred or postponed FERS Basic Retirement Benefit: • Use tracking when mailing anything to OPM to ensure OPM receives your application on time.

• Before you separate from federal employment, obtain copies of your federal employment and any changes in retirement coverage or work schedule (found on your SF 50 “Notification of Personnel Action” forms).

• Also keep copies of your beneficiary designation for FERS and TSP, as well as copies of FEHB and FEGLI changes made before you separated.

• If you have military service, then you must make a military service credit deposit before you separate from government service if you want to receive credit for this time in your deferred retirement.

• Review the RI 92-19 application before separation while you have access to your HR specialist, who can ensure you understand how to complete it.

• Request a deferred or postponed retirement estimate before leaving federal service so that you know how much your benefit is estimated to be.

RETIREMENT OPTING OUT OF THE MEDICARE PRESCRIPTION DRUG PROGRAM

Q

My FEHB plan automatically enrolled me into the Medicare Prescription Drug Program (MPDP) on January 1, 2024. My income will require me to pay higher than the standard premium for Medicare Part B due to the Income Related Monthly Adjustment Amount (IRMAA). I have the option to opt out, and since I don’t spend much out of pocket on my medications, I decided to opt out of the MPDP for now. Will I have to opt out of the MPDP each open season, or will my previous election to opt out remain in effect for each year moving forward?

If you have opted out of the MPDP with your current FEHB health plan, we understand that your current plan will not automatically reenroll you back into the MPDP each year. Since you have opted out of the MPDP, your current prescription coverage will revert to your FEHB plan’s original pharmacy benefit that you

A 20

NARFE MAGAZINE AUGUST 2024

would have had before enrollment in the MPDP. Under current law, each open season, you will have an opportunity to reenroll back into the MPDP without penalty for late enrollment. During any future open season or qualifying life event, if you decide to switch to a different FEHB plan, you may again be subject to automatic enrollment into the MPDP of the new FEHB plan. If you are not interested in maintaining this benefit, you may opt out of the Part D coverage again.

BENEFITS OF THE MEDICARE PRESCRIPTION DRUG PROGRAM

Q

Why would I need Medicare Part D or Medicare Prescription Drug Coverage if my FEHB plan already has adequate drug benefits?

A few reasons to consider maintaining Part D coverage through your FEHB plan include lower cost-sharing compared to your plan’s original FEHB drug benefit and a cap on out-of-pocket drug costs of $2,000. This starts in 2025 on all Part D plans (some FEHB plans offer this limit in 2024).

Suppose you are enrolled in a Medicare Advantage (Medicare Part C) plan through your FEHB program provider. In that case, you must be enrolled in Medicare Parts A & B, and you will generally be automatically enrolled in Part D. In these plans, you must remain covered under the Medicare drug plan.

Two potential disadvantages of Medicare Part D coverage include the fact that manufacturer discounts are not currently available to those with coverage under Medicare Part D. However, the Centers for Medicare and Medicaid Services (CMS) is phasing in the manufacturer discount program for certain drugs of qualifying drug manufacturers over the next several years.

Although FEHB plans offer MPDP coverage at no additional charge, you will pay a surcharge if your income exceeds a certain amount. Those affected by this surcharge may consider opting out of Part D if their Modified Adjusted Gross Income (MAGI) on their 2022 tax return was $103,000 or higher if they are a single filer or $206,000 or higher if they file a joint return (these are the amounts for 2024).

Weigh the surcharge against the benefits of this coverage if you fill expensive prescriptions with high copays.

A

SWITCHING FEHB PLANS

Q

I’m finding that my current FEHB plan no longer meets my needs. Do I have to wait for the next open season before I can make a change?

The answer to your question depends on what kind of change you want to make. Annuitants can change FEHB plans every year during the annual open

A

season. However, some situations allow annuitants to switch FEHB plans outside the yearly open season.

You may make changes outside the Open Season based on qualifying life events (QLE). If you want to keep the same plan but change from family to self-plusone or self-only coverage, or if you want to change from self-plus-one to self-only coverage, you can do that at any time. You should contact OPM for assistance with this, and they can make the change in coverage effective the first of the month following your election.

If you have moved out of the geographic area where your current health plan allows enrollments, you may change plans using the QLE for this event.

Another QLE allows changing FEHB plans outside of Open Season when you reach age 65. This QLE can only be used once in a lifetime. Other examples of QLEs that allow you to switch plans mid-year would include changes in family status such as marriage, birth or death of a family member, adoption, or divorce. With a QLE, you would typically contact OPM within the period beginning 31 days before but no later than 60 days after the event date to make the change.

If you are eligible for TRICARE or TRICAREfor-Life coverage, you also can suspend FEHB

coverage for such coverage any month of the year.

If you choose to suspend FEHB to use TRICARE or any other reason eligible for suspended coverage, use form RI 79-9, “Health Benefits Suspension / Cancellation Confirmation” here: https://www.opm. gov/forms/pdf_fill/ri79-9.pdf.

If you ever suspend FEHB coverage, you will typically have to wait for a future open season to reenroll into an FEHB plan.

Refer to OPM Form 2809 for a list of QLEs for annuitants, survivor annuitants, former spouses under spouse equity provisions, and temporary continuation for eligible former spouses and children. Forms can be found at www.opm.gov/forms. OPM Pamphlet 79-2, “Information for Retirees and Survivor Annuitants (FEHB),” is available at https://www.opm.gov/ retirement-center/publications-forms.

You may call OPM at 1-888-767-6738 and speak with a customer service specialist for assistance. ____________________________________ 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.

Members, Pay $0 out-of-pocket!* Blue Cross and Blue Shield Service Benefit Plan members may be eligible for two fully covered hearing aids with zero out-of-pocket cost on many models when applying your hearing aid benefit*. Call 1-855-252-0025 to discover more or visit www.blue365deals.com/fep.

Members have access to the latest hearing aid models, styles and technology, including the New Signia Styletto IX. Signia Styletto IX

A blend of advanced technology in a sleek, stylish and comfortable design with a battery that can last a full day. Plus, the convenience of recharging on the go.

Book a Complimentary Hearing Evaluation Today. 855-252-0025

WHY HearUSA?

We’ve been offering custom-fit hearing aid devices for over 35 years. Here’s what makes us unique:

Experience the Sound.

Styletto IX

Your hearing. Your way.

Maximize the Benefits.

Your insurance. Our experts.

HearUSA.com

Hear Better Today

Your solution. Without the wait.**

©2024 HearUSA. All Rights Reserved. *The Service Benefit Plan will pay a hearing aid benefit for Standard and Basic Option up to $2,500 total every 5 calendar years for adults age 22 and over, and up to $2,500 total per calendar year for members up to age 22. FEP Blue Focus does not have a hearing aid benefit. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in the Blue Cross and Blue Shield Service Benefit Plan brochure. Blue365® offers access to savings on health and wellness products and services that members may purchase from independent vendors, which are not covered benefits under the Blue Cross and Blue Shield Federal Employee Program, Blue Cross Blue Shield FEP Dental and/or Blue Cross Blue Shield FEP Vision. These products and services will be offered to you through the entire benefit year. During the year, the independent vendors may offer additional discounts on these products and services. To find out what is covered under your policy, contact the customer service number on your member ID card. Any disputes regarding your health insurance products and services may be subject to your plan’s grievance process. BCBSA may receive payments from vendors providing products and services on or accessible through the Site. Neither BCBSA nor any Blue Company recommends, endorses, warrants, or guarantees any specific vendor, product or service available under or through the Blue365 Program or Site. **Depending on the level of hearing loss, many individuals can be fit with their hearing aids on the first appointment and leave with them that same day.

NARFE MAGAZINE www.NARFE.org

21

Benefits Brief

Understanding the Rules for Divorce

I

f you have been through a divorce, you know what an emotional process it is to finalize the settlement. As a federal employee or retiree, you may want to understand how a divorce might affect your

federal benefits in the event it ever happens to you.

Divorce in the United States falls under the authority of state governments. However, current and retired federal employees need to be aware that federal laws governing the division of their benefits in a divorce can sometimes conflict with state laws. In these cases, federal law will prevail.

A court order can: • Divide a Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) retirement benefit • Split a refund of employee retirement contributions • Provide a survivor annuity upon the death of an employee or retiree • Allow a former spouse to continue coverage under the spouse equity provisions of the Federal Employee Health Benefits (FEHB) law • Require an employee to cover their children under FEHB • Require assignment of life insurance under Federal Employees Group Life Insurance (FEGLI) • Require an employee to name their former spouse or children as beneficiaries of FEGLI In addition, benefits may be garnished for alimony, child support, or child abuse cases.

When someone under CSRS or FERS divorces, a court order is required to specifically spell out the division of any CSRS, FERS, or Thrift Savings Plan (TSP) benefits.

22

NARFE MAGAZINE AUGUST 2024

Providing retirement or survivor benefits to a former spouse also includes entitlement to spouse equity coverage under the FEHB program.

If the court order is silent regarding federal retirement and insurance benefits, then the former spouse would not be entitled to CSRS or FERS retirement or survivor benefits, health benefits, assignment of life insurance, or any division of the proceeds of a TSP account. The court order must be written using specific language and following federal guidelines to be acceptable for processing these

Court Order Acceptable for Processing (COAP) even if the retiree and the former spouse agree that they want OPM to pay an amount different from the amount specified in the court order. A Qualified Domestic Relations Order (QDRO) plays a crucial role in dividing assets like 401(k) and 403(b) plans, among others, but is not used or accepted to divide CSRS, FERS, or TSP benefits.

Federal retirement benefits are exempt from the Employee Retirement Income Security Act (ERISA), which applies to privatesector plans.

A federal employee or retiree may assign FEGLI coverage to comply with a court order to ensure that the former spouse remains the coverage beneficiary. If a court orders a federal employee or

CURRENT AND RETIRED FEDERAL EMPLOYEES NEED TO BE AWARE THAT FEDERAL LAWS GOVERNING THE DIVISION OF THEIR BENEFITS IN A DIVORCE CAN SOMETIMES CONFLICT WITH STATE LAWS. IN THESE CASES, FEDERAL LAW WILL PREVAIL.

federal employee benefits. Not following the guidance provided by the Office of Personnel Management (OPM) and the Federal Retirement Thrift Investment Board (FRTIP) can cause problems for the federal civil servant and grief to the former spouse.

A qualifying Retirement Benefits Court Order (RBCO) divides the TSP account and must meet specific requirements to be accepted. OPM must comply with the terms of a properly filed

former employee to name a former spouse as the beneficiary of their life insurance proceeds, under the FEGLI law, an insured person may change their beneficiary designation at any time. This is true even if a court order directs otherwise because the FEGLI law preempts state law and court orders based on state law to the extent that the state law is inconsistent with the FEGLI contract. Assigning ownership of the FEGLI coverage to the former spouse makes it

RECOMMENDED NARFE WEBINARS • Divorce, Remarriage, and Federal Benefits • Protecting Your Federal Benefits in Divorce NARFE’s Federal Benefits Institute webinar archives are found here: www.narfe.org/webinar-archive/

no longer possible for the employee or retiree to change the beneficiary or cancel the coverage.

There are resources available for the attorney to follow when drafting court orders that potentially divide a portion of the TSP account, the CSRS or FERS annuity, and a former spouse survivor annuity.

The TSP offers a booklet titled Court Orders and Powers of Attorney, Booklet 11, which can be found at https://www.tsp.gov/publications/tspbk11.pdf and OPM provides the Handbook for Attorneys on Retirement, Health Benefits and Life Insurance Under CSRS, FERS, FEHB and FEGLI, which can be found at https://www.opm.gov/retirementcenter/publications-forms/pamphlets/ri38-116.pdf.

OPM also publishes a booklet titled Court-Ordered

Benefits for Former Spouses, RI 84-1, which can be found at https://www.opm.gov/retirementcenter/publications-forms/pamphlets/ri84-1.pdf.

It provides federal employees, retirees, and their spouses who want general information about how a court order related to a divorce or separation could affect their retirement and insurance benefits.

NOTE: There are specific rules for military personnel and federal civil servants under Foreign Service Pension programs with the U.S. Department of State and retirement programs particular to the Central Intelligence Agency that are not addressed in this Benefits Brief.

—JAMES MARSHALL IS A FEDERAL RETIREMENT BENEFITS SPECIALIST WITH RETIRE FEDERAL AND THE PRINCIPAL OF FEDERAL RETIREMENT, LLC.

UNITED IN SERVICE & PROTECTION At Bulldog Security Services, an ADT Authorized Dealer, we understand the importance of protecting those who have dedicated their lives to serving our nation. That’s why we’re proud to announce our new partnership with NARFE; providing an exclusive offering tailo tailored to YOU.

NARFE Perks Include $850 Smart Security System* *$99 parts and install. 36-month agreement required.

Termination fees apply. Terms and conditions apply.

$0 Professional Installation $500 Equipment Voucher This ad reflects a limited-time offer for NARFE members. *With a $99 minimum customer activation charge and purchase of alarm monitoring services. A 36-month monitoring agreement is required at $47.99 per month ($1,727.64). An early termination fee applies. The form of payment must be by credit card or electronic charge to your checking or savings account. Local permit fees may be required. Certain restrictions may apply. Other rate plans are available. Cannot be combined with any other offer. Photos are for illustrative purposes only and may not reflect the exact product/service actually provided. ADT Authorized Dealer #7451432

PROTECT WHAT MATTERS MOST

Scan the QR Code to learn more and active your private NARFE offer today.

24

NARFE MAGAZINE AUGUST 2024

Going Into Retirement with

STUDENT LOAN DEBT

BY SUSAN THARES

M

ore than 3.5 million Americans age 60 and over owe more than $125 billion in student loan debt. You might think most of this debt was assumed by parents to send their kids to college, but according to the Government Accountability Office (GAO), almost three-quarters of it was borrowed for their own post-secondary education.

They took on student loan debt because they wanted to brush up their skills to get a promotion, get higher pay or potentially change careers. Many now face retirement with less money than those who did not have to borrow.

NARFE MAGAZINE www.NARFE.org

25

“In recent years, student debt has increasingly become a burden for American seniors, many of whom have been forced to tap into Social Security benefits to repay student loans taken out for themselves or their children.”

— Richard Cordray, federal student aid chief operating officer, U.S. Department of Education

26

NARFE MAGAZINE AUGUST 2024

Carrying student loan debt into retirement can also make it challenging to keep up with basic living expenses like health care, and it can affect your leisure spending for things, like traveling, that you worked for decades to earn.

Some have taken on second jobs, delayed retirement or contemplated pulling money out of their Thrift Savings Plan (TSP) or 401K. A 2019 American Association of Retired Persons (AARP) study suggested that borrowers who waited to save for retirement due to their student loan debt needed to work two to seven years longer to achieve the same account balances as their peers without debt.

Lu Baurle, 63, of Lakeville, MN, took out $83,000 in Parent PLUS loans for her youngest son to attend a private out-ofstate college. The loans covered the gap between financial aid and her savings.

As a single divorced parent, Baurle carries the entire repayment burden despite her ex-husband’s promise to help with payments. She was in deferment status during the COVID-19 repayment pause and is now making payments on a 20-year repayment plan. It’s put a huge strain on her budget and purchasing decisions.

“I have to work more to cover the monthly payment,” Baurle says. “I’m fortunate that, as a flight attendant, I can take on extra flights to cover the expense. The downside is that interest rates are high, so most of my payment goes toward interest and not the principal. Unfortunately, there isn’t any debt relief for parents.”

Steve Simpson from Gig Harbor, WA, took out $30,000 in student loans when he decided to go back to school after retiring. He worked in the tech industry for 25-plus years before retiring but felt at loose ends, so he decided to return to the workforce.

Unfortunately, it was just as the job market tanked in 2008. Interviews were few and far between, so Simpson returned to school to get his master’s degree, which required him to take on student loan debt. He has no regrets, now age 70, as he is enjoying his second career in computer forensics and can manage his student loan payments.

In March 2020, the U.S. Department of Education temporarily suspended federal student loan payments and collections, giving borrowers a bit of a reprieve. It was extended several times as part of COVID-19 emergency relief measures. In June 2023, Congress passed a law preventing further extensions of the federal student loan pause, and payments resumed in fall 2023. The department provided a 12-month on-ramp to the repayment

process, where borrowers who were financially vulnerable or not immediately able to make payments were provided an adjustment period.

During this period, which ends September 30, 2024, borrowers who miss payments will not be considered delinquent or placed in default.

With payments now resumed, many borrowers are feeling the pinch.

“In recent years, student debt has increasingly become a burden for American seniors, many of whom have been forced to tap into Social Security benefits to repay student loans taken out for themselves or their children,” said Richard Cordray, federal student aid chief operating officer, U.S. Department of Education.

So, what are your options? They are complicated and depend on the type of student loan you have.

Share Your NARFE Pride ShopNARFE is the official online store offering NARFE-branded merchandise. A portion of the proceeds from all purchases support the organization.

Shop now at www.narfe.org/shopnarfe.

His & Hers T-shirts, Polos and Jackets Bumper Sticker & Auto Magnets NARFE Lapel Pin

ShopNARFE

Baseball Cap

Tote Bags

Face Masks

License Plate Frames

And More!

NARFE.org/shopnarfe NARFE MAGAZINE www.NARFE.org

27

INCOME-DRIVEN LOAN REPAYMENT OPTIONS Limited-time Fresh Start option: • Fresh Start offers special benefits for borrowers with defaulted student loans. It ends Sept. 30, 2024.

Income-driven repayment plan (IDR), which adjusts your payments according to your income and family size. There are four IDR plans: • Saving on a Valuable Education (SAVE) Plan—formerly the REPAYE Plan • Pay As You Earn (PAYE) Repayment Plan • Income-Based Repayment (IBR) Plan • Income-Contingent Repayment (ISR) Plan Loan forgiveness/cancellation options: • Teacher Loan Forgiveness • Public Service Loan Forgiveness (PSLF) • Borrow Defense to Repayment

IF YOU HAVE FEDERAL STUDENT LOANS YOU TOOK OUT FOR YOURSELF

These loans are either Direct Subsidized Loans, Direct Unsubsidized Loans or, before 2010, Federal Family Education Loans (FFEL), or Grad PLUS Loans.

Repayment Options if You’re Struggling with Making Your Payments

If you’re having trouble making your payments, you may find relief in an income-driven repayment plan (IDR), which adjusts your payments according to your income and family size. While these will increase your loan repayment period, your remaining loan balance is forgiven after a set period.

Those time periods can be 10 years in some public service careers and 20 to 25 years in all others.

The four IDR plans are: • Saving on a Valuable Education (SAVE) Plan—formerly the REPAYE Plan • Pay As You Earn (PAYE) Repayment Plan • Income-Based Repayment (IBR) Plan • Income-Contingent Repayment (ISR) Plan 28

NARFE MAGAZINE AUGUST 2024

Learn more about these plans and how to apply at https://studentaid.gov/manage-loans/ repayment/plans#income-driven.

The Department of Education Office of Federal Student Aid has a loan simulator tool that helps you estimate your monthly student loan payments under the various repayment plans and helps you choose an option that best meets your needs. In some instances, it might be beneficial to consolidate your federal student loans; this tool can also help you decide if that’s the best option for you: https:// studentaid.gov/loan-simulator/.

The different types of federal student loans and the many repayment plans can be very confusing.

It is possible that new repayment plans have been created since you took out your student loans, which historically offered only a 10-year repayment plan.

Can You Qualify for Student Loan Forgiveness or Cancellation?

The Biden administration has forgiven the student loan debt of 4 million borrowers.

Sometimes, you may also qualify for federal

student loan forgiveness or loan cancellation.

Public Service Loan Forgiveness and IDR are the two main programs. Your debt is forgiven if you work in a qualifying public service job and make 120 qualifying payments. Similarly, if you are on one of the four IDR plans, your payments are based on family size and a share of your discretionary monthly income and it can lead to the erasure of your debt after 10 to 25 years of payments. More information: https://studentaid.gov/manage-loans/ forgiveness-cancellation

What if You Are in or Near Default?

Failing to make timely student loan payments can have serious consequences.

A loan becomes delinquent if you do not make a payment by the specified date after 90 days. If you continue to be delinquent, you risk your loan defaulting. Default occurs when a payment is not

made in more than 270 days after the due date.

Defaulting on your federal student loans has grave consequences, including a lowered credit score that can impact your ability to borrow, rent an apartment, and more.

If you defaulted on any of your federal student loans, contact the organization that notified you of the default as soon as possible so you can explain your situation fully and discuss your options. If you make repayment arrangements soon enough after your loan has gone into default, you may be able to resolve the default quickly. Do not get discouraged if you default on your federal student loan and its potential impacts on your financial future.

Options are available. More information: https:// studentaid.gov/manage-loans/default/get-out The Department of Education also has a temporary Fresh Start program that offers special benefits for borrowers with defaulted federal student loans. This second chance program ends

FEDERAL RETIREMENT BOOTCAMP KEY TOPICS COVERED:

703-691-9200 keenpocock.com info@keenpocock.com

Proper Asset Allocation Tax-efficient investing & withdrawal strategies Social Security claiming strategies Roth conversion strategies Stealth taxes Beneficiary designations FEHB and FEGLI in retirement Retirement income projections Call TODAY for a complimentary meeting

Paid advertisement. NARFE and Keen & Pocock are not affiliated. There is no obligation to use the services of Keen & Pocock. Keen & Pocock offers advisory services through Strategic Blueprint, LLC and securities through The Strategic Financial Alliance, Inc. (SFA), member FINRA/SIPC. Strategic Blueprint and SFA are affiliated through common ownership but otherwise unaffiliated with Keen & Pocock. 10300 Eaton Place, Suite 470, Fairfax, VA 22030

NARFE MAGAZINE www.NARFE.org

29

“The downside is that interest rates are high so most of my payment goes toward interest and not the principal.

Unfortunately, there isn’t any debt relief for parents.”

— Lu Baurle, of Lakeville, MN, who took out $83,000 in Parent PLUS Loans for her youngest son to attend a private out-of-state college

Sept. 30, 2024, so you still have time to enroll if you qualify: https://studentaid. gov/announcements-events/defaultfresh-start

Who Can You Contact?

Several loan servicers manage repayment for the Department of Education. They work with you on repayment options such as loan consolidation and IDR plans. Borrowers need to keep their contact information up to date. If your circumstances change at any time during your payment period, the loan servicer will assist you with options. If a borrower is not sure who their servicer is, they can log in to https://studentaid.gov/ to find out the name of their servicer.

IF YOU HAVE FEDERAL DIRECT PLUS LOANS FOR PARENTS (PARENT PLUS LOANS) These are loans taken out by parents for their dependent undergraduate students with an interest rate that is fixed for the life of the loan. Payments begin as soon as the loan is fully paid out unless you request a deferment while your child is in school.

During periods of deferment, interest will accrue. You may have chosen to pay the accrued interest or allowed the interest to capitalize and add to your principal loan balance. Like the other federal student loans, your loan servicer, assigned by Department of Education, will notify you when your first payment is due. The parent borrower is legally responsible for repaying the loan.

Unfortunately, repayment options are very limited, but parent borrowers can become eligible for the Income Contingent Repayment Plan by consolidating their Parent PLUS loans into a Direct Consolidation Loan. Under certain circumstances, you might be eligible to have all, or part of your loan forgiven. More information: https://studentaid.gov/manageloans/consolidation

30

NARFE MAGAZINE AUGUST 2024

Donate

to NARFE programs

Donate to NARFE

Enclosed is my NARFE Contribution: $ __________________

MAKE CHECK PAYABLE TO: NARFE

Name: ___________________________________________________________

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

PLEASE MAIL COUPON AND CHECK TO: NARFE / 606 N. Washington St. / Alexandria, VA 22314 or donate online at www.narfe.org/ donate With NARFE’s thanks, you will receive a NARFE Photo Calendar

Address: _________________________________________________________

NARFE safeguards the earned pay and benefits of America’s five million federal workers, retirees, their spouses, and survivors. NARFE is YOUR legislative voice and tireless advocate.

Card Number: ____________________________________________________

NARFE contributions are NOT tax-deductible.

City:_____________________________________________________________ State:______________________________ ZIP: _________________________

Credit Card Information: q M/C q VISA q Discover q AMEX Expiration Date: ______ (mm)/ _____ (yy)

Security Code: ______________

Signature: ___________________________________ Date: ____ / ___/____ Name: (please print) _______________________________________________

Support Alzheimer’s Research NARFE members contributed for Alzheimer’s research: $17 Million Fund $16,232,898.13* *Total as of May 31, 2024. All contributions go directly to Alzheimer’s research, with the exception of funds given to the Walk to End Alzheimer’s or The Longest Day.

If you have any questions, write to: National Committee Chair Olivia Williams PO Box 2175 Columbia, SC 29202 OR EMAIL: oeashf3@gmail.com MAKE CHECK PAYABLE TO: NARFE-Alzheimer’s Research (write your chapter number on memo line)

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

Name: ___________________________________________________________ Address: _________________________________________________________ City:_____________________________________________________________ State:______________________________ ZIP: _________________________ Chapter number: __________________________________________________

PLEASE MAIL COUPON AND CHECK TO: Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633

Credit Card Information: q M/C q VISA q Discover q AMEX

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

Signature: ___________________________________ Date: ____ / ___ / ______

Give to the

NARFE-FEEA Fund MAKE CHECK PAYABLE TO: NARFE-FEEA Fund PLEASE MAIL COUPON AND CHECK TO: FEEA 1641 Prince St. Alexandria, VA 22314

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

Card Number: ____________________________________________________ Expiration Date: ______ (mm)/ ____(yy)

Security Code: _______________

Name: (please print) _______________________________________________

The NARFE-FEEA Fund supports NARFE members during disasters; provides scholarships to their children, grandchildren and great-grandchildren; and funds other programs to support NARFE members at the direction of NARFE and FEEA. Enclosed is my NARFE-FEEA Fund Contribution: $ ________ Name: ___________________________________________________________ Address: _________________________________________________________ City:_____________________________________________________________ State:______________________________ ZIP: _________________________ Email: ___________________________________________________________

To make credit card or e-check contributions, visit www.feea.org/givenarfe.

IF YOU HAVE PRIVATE STUDENT LOANS FROM A PRIVATE LENDER/BANK

Private student loans are made by private organizations such as credit unions or banks, and have terms and conditions that the lender sets. Generally, these loans are more expensive than federal student loans and are not eligible for federal debt forgiveness programs like Public Service Loan Forgiveness or Total and Permanent Disability Discharge. If you are having trouble making your payments, you might consider refinancing your loan, whereas you take out a new private loan

on better terms to repay the balance of what you currently owe.

If you can refinance at a lower interest rate, you can potentially lower your monthly payment, save thousands of dollars over the life of the loan and get out of debt faster. Like refinancing your home or other type of loan, it pays to shop around for a lender. Most lenders will do a soft credit check to pre-qualify you and give you an estimated interest rate and monthly payment amount.

Federal student loans cannot be discharged in bankruptcy, and, contrary to the belief of some, they are not written off at age 65. If you’re collecting Social Security, up to 15% of your benefits can be garnished if you’re in default. Some 114,000 people have had their Social Security garnished because they could not make their payments and defaulted on their loans. If you’re still working, the government can withhold 100% of any tax refund to offset your defaulted loan.

“The department has taken steps to help borrowers afford their monthly payments through income-driven repayment plans, including the Saving on a Valuable Education (SAVE) Plan,” Cordray says. “SAVE is cutting monthly payments to $0 for millions of borrowers with low incomes. This plan saves many borrowers at least $1,000 per year and ends runaway interest that has left borrowers owing more than their initial loan, which matters to many seniors who still carry student loan debt. Seniors can explore the benefits of the SAVE Plan at StudentAid.gov/save.”

Don’t let student loan debt ruin your retirement plans. You’ve worked hard to get to this point. You’re not alone, and taking advantage of these options may help ease the burden of your student loan debt.

—SUSAN THARES IS A RETIRED MANAGEMENT ANALYST FOR THE U.S. DEPARTMENT OF EDUCATION OFFICE OF FEDERAL STUDENT AID

32

NARFE MAGAZINE AUGUST 2024

NARFE’S BIENNIAL NATIONAL CONFERENCE

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

THANK YOU TO OUR FEDCON24 SPONSORS NARFE is proud to acknowledge the following organizations for their generous support of FEDCON24! Your support and partnership played a key role in the success of our event, and we appreciate your participation

Welcome Reception Sponsor Federation President’s Meeting Sponsor

AMBA

Monday Lunch Sponsor

Keynote Speaker Sponsor Federation President’s Meeting Sponsor Badge and Lanyard Sponsor Monday Break Sponsor

Charging Station Sponsor Program Book Sponsor Federation President’s Meeting Sponsor

Tote Bags Sponsor Federation President’s Meeting Sponsor Session Sponsor

Don’t forget to stop by the sponsors’ booths during FEDcon24 and say Thank You!

34

NARFE MAGAZINE AUGUST 2024

A

BY IVANA SARA

s we enter August, a pivotal month known for congressional recess and heightened political activity, the focus of our advocacy efforts intensifies. This period offers a unique opportunity for grassroots movements, especially during the buzz of the 2024 general election year. This year’s theme for Grassroots Advocacy Month (GAM) encourages diving into the dynamics of political engagement during an election cycle and understanding how political power and public policy shifts can reshape our strategies and outcomes.

NARFE MAGAZINE www.NARFE.org

35

The Impact of Congressional Recess

During congressional recess, legislators return to their districts, providing you, as advocates, with a golden opportunity to engage directly with your lawmaker. This is a crucial time for constituents to voice their concerns, showcase their support for or opposition to policies, and influence lawmakers' perspectives.

When members of Congress are in their districts, they are more accessible to their constituents. This period is ideal for organizing chapter/federation meetings for your lawmaker to attend or other community events, like town halls, where NARFE members can interact faceto-face with their elected officials. These direct interactions are invaluable for making personal connections and conveying the human side of policy issues.

The recess period allows you to talk more informally in a relaxed setting with your lawmaker, which can help build trust and rapport. They are more likely to remember personal stories and connections made during these times, which can be beneficial when they return to Washington, D.C., and the legislative session resumes.

This time is also valuable for NARFE members to reinforce their presence and advocacy efforts within the community. Strategizing this ensures that relationships with legislators are not just transactional but are built on a foundation of ongoing communication and mutual understanding.

This continuous engagement can lead to more sustained support for NARFE’s legislative priorities throughout the year.

Navigating Advocacy in an Election Year Election years magnify the importance of advocacy efforts. Strategies must adapt to candidates vying for office and potentially shifting political landscapes. In 2024, the stakes are 36

NARFE MAGAZINE AUGUST 2024

higher as we approach the general election and change our advocacy outcomes based on electoral results. Political control may switch hands, and with it, the legislative agendas that drive our advocacy topics may either find new support or face hurdles.

Advocacy during an election year is complex.

Candidates are particularly attuned to the concerns of voters, making it an opportune time to push for policies that benefit federal employees and retirees.

However, the heightened political activity also means that messages need to be clear, compelling, and nonpartisan to cut through the noise and effectively reach candidates.

Adapting Strategies Amid Political Shifts

Grassroots advocacy must remain agile and responsive. Strategies that work under one administration or legislative majority might not hold under another. Advocates need to reassess their approaches based on the prevailing political climate, focusing on: Building Relationships: Regardless of party, lasting relationships with legislators can transcend political moves. Establishing and nurturing connections with lawmakers, their staff, and key influencers ensures that NARFE's concerns remain a priority regardless of who holds office.

Education and Engagement: Continuous education on our legislative issues is essential to maintaining focus, regardless of political shifts.

We ensure that our advocacy efforts remain strong by training and equipping our members with the knowledge and confidence to engage with legislators effectively. This creates a virtuous cycle of education and dissemination, where well-informed members can confidently educate legislators and the broader community.

Bipartisanship: Striving for bipartisan support can safeguard issues from becoming casualties of political warfare. Policies that attract support across the political spectrum are more likely to endure through updates in administration and congressional leadership.

Tools That Withstand Political Changes

Certain advocacy tools retain their effectiveness, no matter the political landscape: Personal Stories: Sharing personal narratives can humanize issues, making them more relatable

and harder to ignore. Stories from federal employees and retirees about how specific policies burden their lives can resonate deeply with lawmakers and the public.

Data and Research: Empirical evidence can support the necessity for legislative updates, especially when including personal stories like sharing the number of federal employees and retirees affected in your district. Data points and issue briefs serve to inform legislators. Many can underestimate the fact that lawmakers may be unaware of specific issues hitting close to home.

Data can help build a case that speaks to solid facts regardless of political affiliation.

Digital Campaigns: Using digital platforms for advocacy ensures broad reach and engagement.

Social media, email campaigns, and virtual town halls can amplify voices and maintain momentum even when in-person meetings are not feasible. Not only is the virtual landscape more convenient, but more prevalent, with virtual meetings increasing from 48% to 77% between 2020 and 2022, according to Flowtrace, an employee analytics company.

NARFE’s Nonpartisan Stance and Voting

As a nonpartisan organization, NARFE focuses on policy, not politics. However, encouraging voting is a fundamental aspect of civic engagement. Voting is not just a right but a powerful tool for advocacy.

By participating in the electoral process, our members can help elect officials who align with their views on critical issues that federal employees and retirees care deeply about. In doing so, they actively shape the policy landscape in which our advocacy operates.

NARFE encourages members to vote by providing nonpartisan information about candidates’ positions on issues relevant to federal employees and retirees. This approach helps members make informed decisions at the ballot box while maintaining the organization’s commitment to nonpartisanship.

Action Letters: These letters are a quick way to write to your legislators on various legislative issues affecting the federal community. It is a steadfast way of taking action, especially with any new legislative development! Members can easily send an action letter via NARFE’S legislative action page while obtaining background information on the bill or issue. They are also provided a letter template to personalize, making the issue more tangible.

In-Person/Virtual Meetings: Personal interactions remain one of the most powerful advocacy tactics, and to support these interactions, NARFE provides essential tools, such as meeting request templates and talking points on various legislative issues, and even issue briefs and fact sheets to reference and share. Organizing one-onone meetings with lawmakers allows members to convey their stories and concerns directly, especially when face to face if possible. Whether in-person or virtual, we make sure to equip you with the resources to go into your meeting feeling poised and ready to talk policy, conveying how legislative decisions affect your livelihood, attributing a natural face and voice to the issue.

Phone Banking: Phone banking is a simple, fast, and effective way to mobilize members and encourage direct communication with legislators. NARFE

Leveraging Grassroots Advocacy Tools All Year Long

There are always advocacy tools ready to use!

Regardless of an election outcome, there are various grassroots tools that can be leveraged 365 days a year, including, but not limited to: NARFE MAGAZINE www.NARFE.org

37

members can pick up the phone, and call their representatives to express concerns on the matters affecting them, and call their lawmakers to take a specific action.

NARFE gives you the tools to make your call a breeze, with phone scripts outlining key points to mention, while members can also personalize their calls with their own experiences to share.

Social Media: Using social media platforms for advocacy is an increasingly savvy and essential way to optimize our advocacy efforts—more than one might think!

NARFE provides sample posts and tweets that members can use and circulate to increase visibility on any issue. These templates help ensure that messages are clear, consistent, and compelling. Given the prevalence of social media, this approach is highly effective—more than 95% of members of Congress are on Twitter, and many are also active on Facebook, LinkedIn, and Instagram, according to the Pew Research Center. This broad presence offers numerous opportunities to get a lawmaker's attention or generate community support.

Social media allows for continuous storytelling, as posts can be liked, retweeted, and shared, amplifying the reach of our advocacy efforts. Effective use of hashtags, tagging legislators, and creating shareable content can significantly enhance the reach of NARFE's advocacy initiatives, ensuring that our issues and presence are constantly highlighted.

Advocacy Training: Effective advocacy techniques help NARFE leaders, like Ruthann Couch of our Oregon Federation, take action confidently.

NARFE training conferences LEGcon and FEDcon are key.

“Every LEGcon helps me get better,” said Couch, who’s attended for more than 15 years. “I am still improving my ability to frame issues.”

NARFE’s monthly grassroots educational videos offer more insight, covering topics like how to communicate with legislators, how to write compelling letters to the editor, how to engage with legislators on social media, how to organize local advocacy events, and more.

Grassroots Lobbying: Encouraging members to participate in grassroots lobbying efforts can amplify 38

NARFE MAGAZINE AUGUST 2024

NARFE’s voice. Lobby day, as a part of LEGcon, allows members to meet with legislators and their staff to discuss the key aspects of legislation resonating with our members. However, GAM is also a prime time to similarly accomplish a “lobby day” but for the duration of a whole month! All August, members set up meetings with their lawmakers and/or their staff in their own localities, attend town halls/community events, or invite members of Congress to federation/chapter meetings to sit down, address NARFE legislative priorities and concerns, and get to know members more personally.

Importance of Consistent Advocacy

Despite the fluctuations in political power and legislative priorities, it is crucial for grassroots advocacy efforts to remain steady and persistent.

Legislative processes can be slow and complex, and achieving meaningful results often requires sustained effort over time. By maintaining a consistent advocacy presence, NARFE can ensure that the issues important to federal employees and retirees stay on the legislative agenda.

Consistent advocacy also helps build a strong foundation of support within the organization.

Engaging fellow members regularly keeps them informed and motivated, fostering a sense of community and shared purpose. This collective strength can be a powerful force in advocating for policies that benefit federal employees and retirees.

The Call to Action

As we navigate the complexities of an election year and the opportunities presented by the congressional recess, the call to grassroots advocacy becomes more pronounced. The effectiveness of our efforts is not just in swaying current legislation but in setting a precedent for active, informed, and continuous civic participation. While the political landscape is ever subject to shifts, the essence of advocacy remains the same: a committed, informed, and engaged populace is the cornerstone of a functioning democracy. Our actions during this time can set the tone for the future, emphasizing the necessity for continual advocacy and the importance of each vote.

Let this Grassroots Advocacy Month remind us of each member’s strength and may our voices lead to meaningful changes that resonate beyond 2024.

—IVANA SARA IS NARFE’S GRASSROOTS PROGRAM AND LEGISLATIVE AFFAIRS MANAGER.

Don’t Miss NARFE’s Upcoming 2024 Webinars SEPTEMBER 26

How to Plan for Long-Term Care

OCTOBER 17

Medicare Part B- To B or Not to B

OCTOBER 24

Open Season Preview w/ FEDVIP

OCTOBER 31

Medicare Advantage Plans (in FEHB and out of it)

NOVEMBER 7

Postal Service Health Benefits Program

NOVEMBER 12

Choosing the Best FEHB with Medicare

NOVEMBER 14

Choosing the Best FEHB without Medicare

NOVEMBER 21

FEHB Prescription Drug Plans

DECEMBER 12

Estate Planning

Online Q&A sessions follow each webinar. For details and to register, visit NARFE.org/webinars.

NARFE WEBINAR PRESENTERS

ALL WEBINARS FREE FOR NARFE MEMBERS REGISTER TODAY! Call: 800-456-8410 x1 Email: memberrecords@narfe.org Online: www.narfe.org/webinars NOT A MEMBER? Join NARFE today at NARFE.org/Join.

Kevin Moss

Tammy Flanagan

Mark Keen, CFP

Federal benefits and retirement expert

Senior Editor with Checkbook’s Financial planner helping Feds prepare for retirement Guide to Health Plans

NARFE FEDERAL BENEFITS INSTITUTE NARFE MAGAZINE www.NARFE.org

39

AUGUST 18-20

NARFE’S BIENNIAL NATIONAL CONFERENCE

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, 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

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

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.

What Do I Do With All of My Stuff? (My Kids Don’t Want It)!

Nutrition and Aging: Gaining Powerful Nutrient Knowledge Getting Started in Genealogy

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 Chapter Officer 101 Best Practices for Chapter/Federation Communication AMS Strategies for Officer Success Volunteers are Your Greatest Resource: Best Practices in Volunteer Recruitment and Retention

ACTIVE FEDERAL EMPLOYEE TRACK

Explore how to take advantage of your federal career before retirement through this track of active employee-catered sessions.

The Confidence Catalyst: Unleashing Your Full Potential At Any Age and Stage Career Management Strategy: Power Up Your Career Flex Your Problem-Solving Muscles Why Mentoring Matters

ACTIVE FEDERAL EMPLOYEE BENEFITS TRACK The Final Steps: Transition From Employee to Annuitant Retirement Planning For Pre-Retirees

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.

LIFESTYLE TRACK SPEAKERS DOROTHY BREININGER

WHAT DO I DO WITH ALL OF MY STUFF? (MY KIDS DON’T WANT IT)!

“Dorothy The Organizer” is America’s Most Innovative Professional Organizer featured on TV show “Hoarders”

BROOKE HUBER

ILENE MURRAY

Registered and licensed dietitian with Aging Ahead

Publications director at the St. Louis Genealogical Society

NUTRITION AND AGING: GAINING POWERFUL NUTRIENT KNOWLEDGE

GETTING STARTED IN GENEALOGY

ACTIVE FEDERAL EMPLOYEE TRACK SPEAKERS TREVA DARICE SMITH CAREER MANAGEMENT STRATEGY: POWER UP YOUR CAREER

President of Career Development and Business Etiquette Consulting, LLC

SHERYL VOGT & AMITA SHERWOOD FLEX YOUR PROBLEM-SOLVING MUSCLES

MIKA J. CROSS THE CONFIDENCE CATALYST: UNLEASHING YOUR FULL POTENTIAL AT ANY AGE AND STAGE

Workplace Transformation Strategist

KENNETH BAILEY WHY MENTORING MATTERS

Retired federal employee and Army combat veteran

MORE SPEAKERS ONLINE! Visit fedcon.narfe.org

Managing Money

L

Understanding the TSP Beneficiary Participant Rules ast month’s column explained that there are two types of Thrift Savings Plan (TSP) participants: a TSP participant and a TSP beneficiary participant. Although their names

are similar, there are significant differences between the two, including the rules they and their beneficiaries must follow.

Recall that a TSP participant is the original TSP owner (i.e., the federal employee or uniformed service member who contributed to the TSP account), while a beneficiary participant can only be a surviving spouse who inherits a TSP account from a TSP participant.

After inheriting a TSP account, beneficiary participants have several options. They may maintain the TSP beneficiary participant account or transfer it to an individual retirement account (IRA). Alternatively, if they also have a TSP account from their own federal or uniformed service, they can transfer the beneficiary participant account to their own TSP. While there is no deadline for transferring a TSP beneficiary participant account to an IRA or their own TSP, maintaining a TSP beneficiary participant account has significant implications for both the beneficiary participant and their beneficiaries. For instance, a beneficiary participant will be subject to different required minimum distribution (RMD) rules than if they transferred the TSP beneficiary participant account to an IRA or their own TSP. For example, retirement account owners (including IRA owners and TSP participants) must typically start RMDs the 42

NARFE MAGAZINE AUGUST 2024

year they turn 73 (the required minimum distribution, or RMD, age increases to 75 in 2033). On the other hand, a beneficiary

AFTER INHERITING A TSP ACCOUNT, BENEFICIARY PARTICIPANTS HAVE SEVERAL OPTIONS.

participant’s first RMD year depends on the TSP participant’s age at death. More specifically, whether the participant died before or after the required beginning date (RBD), which is April 1 of the year following the year the participant turns 73 or retires, if later.

Suppose the TSP participant dies before the RBD. In that case, the beneficiary participant’s first RMD must be distributed by the later December 31 of the year the TSP participant would have turned 73 or by December 31 following the year the TSP participant died. If the TSP participant dies after the required beginning date, RMDs must begin by December 31 of the year after the TSP participant dies.

Suppose the beneficiary participant is younger than the deceased TSP participant. In that case, this rule may require the beneficiary participant to start taking RMDs sooner than they would have to if they transferred the TSP beneficiary participant account to an IRA or their own TSP. For example, assume a TSP participant dies at the age of 75 and leaves his TSP account to his 65-year-old spouse. In this case, the surviving spouse as a beneficiary participant would have to start RMDs by December 31 of the year following the year of the TSP participant’s death.

On the other hand, if the surviving spouse transfers the TSP beneficiary participant account to an IRA or their own TSP, they won’t have to start taking RMDs until they turn 73.

Furthermore, while a TSP participant and IRA owner use the IRS’s uniform lifetime table to calculate RMDs, a beneficiary participant’s RMD will be calculated using the single life table. This results in an RMD that is significantly larger (60% +) than an RMD calculated using the Uniform Lifetime Table.

Perhaps the biggest drawback to maintaining a TSP beneficiary participant account occurs at the death of the beneficiary participant.

When a beneficiary participant dies, the only option their beneficiary (spouse or nonspouse) has is a lump sum distribution paid directly to the beneficiary. Unlike following the death of a TSP participant,

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

the lump sum distribution paid to the beneficiary of a beneficiary participant may not be transferred to an IRA or inherited IRA. In other words, it can never be put back into a retirement plan, and any part of the distribution coming from the traditional TSP will be fully taxable.

Despite the potential drawbacks, there are circumstances when it makes sense for a surviving spouse to maintain a TSP beneficiary participant account. For example, beneficiaries are not subject to the 10% early distribution penalty when distributions are taken before age 59 ½.

Suppose a surviving spouse is younger than 59½ and needs access to the TSP beneficiary participant account. In that case, it may make sense to maintain and take withdrawals from the account until they reach age 59½. At that point,

the surviving spouse doesn’t have to worry about the 10% early withdrawal penalty. They could transfer the beneficiary participant account to an IRA or their TSP account.

Beneficiary participants must understand the potential consequences of maintaining a TSP beneficiary participant and their other options to avoid costly outcomes.

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.

Make the switch and get enhanced benefits.

SM

Call us at: 1-800-410-7778

Advantage Plan (PPO) for members who have Medicare Parts A and B as their primary coverage.

(TTY:711)

• Prescription coverage as low as $0 • $0 deductible, copayments and coinsurance for medical care • $900 Medicare Part B premium reduction for eligible members • Added programs such as SilverSneakers® and Healthy Home Visits

Visit: MHBP.com Live chat 1:1 consultations Webinars

This is a brief description of the features of this MHBP plan. Before making a final decision, please read the forth in the Federal brochure.

A single annual $52 associate membership fee makes all MHBP plans available to you. For more information about MHBP plans, refer to MHBP.com Aetna Medicare is a PPO plan with a Medicare contract. Enrollment in our plans depends on contract renewal. Plan features and availability may vary by service area. SilverSneakers is a registered trademark of Tivity Health, Inc. © 2021 Tivity Health, Inc. All rights reserved.

Y0001_GRP_4111_2022_M 19.22.320.1-OCT NARFE MAGAZINE www.NARFE.org

43

NARFE News

NARFE Creates Director of Chapter Relations Position, Promotes Sandra Lawing

T

he evolution of NARFE’s Member Engagement Department reached another milestone this spring with the creation of a new position: director of chapter

relations. Sandra Lawing, who has worked at NARFE for 29 years and most recently as director of member services, stepped into this new role May 6.

Lawing is now responsible for overseeing all chapter closures and mergers and providing guidance and training resources to chapter leaders, especially brand-new leaders. She will also help with matters about chapter dues, life members and other needs and requests for chapters and federations.

The creation of this new position was based on a careful review of continued feedback from members and chapter/ federation leaders, according to

Nora MacDonald, director of member engagement.

“I love my job,” Lawing said, adding that this is not a huge change to her. “I’ve always worked with chapters.”

Lawing has been the go-to headquarters contact for reports, member information, invoices, renewals, applications, and more.

She has the experience and professionalism to work across NARFE’s chapters to assist with the sensitive handling of chapter closures and mergers, which

2024 CONFERENCES & EVENTS Information as of May 29, 2024: ALASKA: virtual conference September 28, Contact Federation President Paul McIntosh, mcintoshpaul10@ gmail.com or (907) 433-9833, for more information.

CONNECTICUT: conference October 10, Marriott Courtyard, 4 Sebethe Dr, Cromwell. Contact Federation Secretary Peggy McGrath, pleisure@cox.net, for more information.

ILLINOIS: conference September 17-19, Thelma Keller Convention Center, 1202 N. Keller Drive, Effingham. Contact Convention Chair Linda Glasgow,

44

NARFE MAGAZINE AUGUST 2024

is no longer news for NARFE as it continues to pivot toward sustainable growth.

“This position focuses more on giving support and structure to the chapter and federation officers who need more assistance in performing their roles,” she said. “It can be technical for them.

Many officers are left holding a role that did not receive additional assistance from past or present officers, and these officers did not have enough information on what is needed to perform their role effectively. We have booklets, but they may need one-on-one help regarding transitions and roles.”

Lawing receives calls and emails from officers fairly often stating how new they are to their role or how new they are to creating financial reports and needing the correct form

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.

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

Visit www.narfe.org/NH for information.

REGION IX SYMPOSIUM: Alaska, Idaho, Montana, Oregon and Washington, October 24-26, Three Rivers Convention Center, Kennewick, WA. Contact Mary Alice Binder, mary_binder@msn.com, or visit http://www. narfe.org/wa/ for more information.

from headquarters. Her team is also building a resource list for new or struggling officers.

Lawing saw numerous chapters close during the pandemic. Now is the time to sustain chapter membership and be a hands-on, supportive resource. She will explore individual chapters more closely to understand their strengths and weaknesses, as well as be a resources to help set up new chapters.

“I have the opportunity to build a relationship with officers to maintain how accurate information is given on a national level while helping identify how to better support our chapters in delivering value to our members and on how chapters can help NARFE achieve its goals,” she said.

Lawing started at NARFE as a receptionist and then as a 1-800 membership operator. She worked her way up to supervisor, manager, and

director. She’s worked closely alongside staff in the membership department for a long time, and they are a tight-knit group.

“I’m here for the officers,” she adds. “I’m here for the members. It’s just all about NARFE.” With this personnel change, Natcole ReidMcCorkle, senior manager of membership data, will oversee NARFE’s team of four membership engagement representatives. Reid-McCorkle’s leadership role has expanded within the department, and the department has seen rapid improvement in key metrics, including its 98% call answer rate in April. New membership brochures are ready for ordering.

Most membership questions can be directed to 800-456-8410, option 1, memberrecords@ narfe.org. Send chapter-specific questions to fedchpsrvcs@narfe.org.

—BY MATT SANDERSON, CONTENT MANAGER

Explore What’s On the Horizon!

At ARC, we prioritize the true essence of community living. With a plethora of engaging programs, vibrant activities, and abundant choices, life here is anything but dull. Prepare to be pleasantly surprised by the dynamic, social, and cool atmosphere permeating every community aspect. Get ready to experience a community where warmth, vitality, and genuine camaraderie take center stage.

NOW ACCEPTING E-8, E-9, GS-12, & HIGHER. Rentals are now available. Act now & take advantage of Post-Construction Benefits.

SO DON’T MISS OUT−ACT NOW! Tour with us. Call (210) 646-5315 or visit www.armyresidence.com

7400 Crestway San Antonio TX 78239-3098

The ARC welcomes all officers, including noncommissioned officers (E-8 and E-9), retired, or honorably discharged from all branches of services, as well as senior level GS-12 & above federal employees, to include spouses and surviving spouses, who are at least 62 years old.

NARFE MAGAZINE www.NARFE.org

45

200042

Job #:

Y247729-RFE-CAL BACK COVER

Component #:

Laser:

Job Name:

Size:

Images:

Audience:

Colors:

2024 RFE 2025 Calendar

NARFE News

n/a

10-1/2 x 8-3/8

Members

All photos HIGH RES

4cp/4cp

N

ARFE’s 2024 Photo Contest brought in hundreds of wonderful photographs from NARFE members. Narrowing the selection from several hundred photos was a tremendous effort this year, but the result is a magnificent 2025 NARFE Calendar, which is being distributed during NARFE’s fundraising efforts this year. Check next month’s issue for details on entering 2025 Photo Contest.

FRONT COVER • Down East Lighthouse • Robert C. Peterson • Summerville, SC • Chapter 1082 Job #:

606 North Washington Street Alexandria, Virginia 22314-1914 www.narfe.org

LIST OF 2024 PHOTO CONTEST WINNERS

200042

Y247729-RFE-CAL COVER

Component #:

Laser:

Job Name:

Size:

Images:

Audience:

Colors:

2024 RFE 2025 Calendar Members

10-1/2 x 8-3/8

n/a

All photos HIGH RES

4cp/4cp

Proudly made in the U.S.A.

Y247729

Cover: “Down East Lighthouse” by Robert C. Peterson, Summerville, SC, Chapter 1082.

January: “Glacier Detail (Tracy Arm Fjord, Alaska)” by Norajean Flanagan, Philadelphia, PA, National Member.

February: “All Aboard 473” by Michael Kochmanski, Clarence Center, NY, Chapter 153.

March: “Big Hole Pass (Montana)” by Gary K. Bell, Middletown, MD, Chapter 409.

April: “Sea of Prairie Grass Waving as Spring Storm Approaches (Burns, KS)” by Roger M. Peterson, Buckeye, AZ, National Member.

May: “Raspberry Wine at Oakes Daylilies” by Kathy Nash, Maryville, TN, National Member.

June: “Sunrise Over Myrtle Beach” by David Harrah, Bel Air, MD, National Member.

July: “George Washington’s Headquarters (Cumberland, MD)” by Belinda Huff, Lexington, KY, National Member.

August: ‘“Taggart Lake (Grand Teton National Park, WY)” by Larry Trombello, Milford, DE, Chapter 1690.

September: “Lower Manhattan Skyline (2019)” by James Benoit, Williston, VT, Chapter 208.

October: “Autumn Peace, Fall Trails at Ricketts Glen State Park” by Phyllis Maguire, Wesley Chapel, FL, Chapter 390.

November: “Eagle Eyes” by George Petrovich, Parrish, FL, Chapter 441.

December: “Bear Butte Floating in Northern Lights” by Deborah Zimmerman, Sturgis, SD, Chapter 1635.

Y247729-RFE-CAL BACK COVER.indd 1

4/24/24 1:48 PM

Y247729-RFE-CAL COVER.indd 1

RESERVE YOUR CALENDAR NOW Like what you see above? The 2025 NARFE Calendar will be sent to select NARFE members later this month. You can get ahead of the crowd and reserve your copy with a small donation to NARFE. Remember, your contributions support NARFE’s important advocacy and education initiatives on behalf of all federal employees and retirees. Visit www.narfe.org/reserve-calendar to make your gift today! Allow 6 to 8 weeks for delivery.

46

NARFE MAGAZINE AUGUST 2024

4/24/24 1:50 PM

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)

BYLAWS COMMITTEE REPORT

Bylaws and Standing Rule Amendments on the 2024 Ballot The NARFE Bylaws Committee (BC) has the responsibility of assessing and making recommendations regarding proposed bylaws and standing rule amendments for placement on a ballot for a vote of the membership. The committee may submit proposed amendments and edit, combine, substitute, reject, or rule out of order these proposed amendments.

The 2024 Bylaws Committee was chartered in February 2024 to consider the submitted bylaws and standing rule amendments for a ballot vote in 2024. The committee met five times by GoToMeeting virtual meetings between March and May 2024 and reviewed a total of 19 submissions, including 13 bylaws amendments and six standing rule amendments. The committee approved 14 for the ballot and ruled one out of order. The proposer of one bylaw and three standing rule amendments withdrew his amendments, and one standing rule amendment was merged with a bylaws proposal by the submitter. Of the 14 ballot items, the Bylaws Committee recommended four for adoption (one bylaw and three standing rule amendments) and 10 for rejection. The NEB overruled one appeal of rejection. (BNEB-02-2024) The proposers of submissions recommended for rejection by the Bylaws Committee were given an opportunity to appeal that decision to the National Executive Board (NEB). Ten appeals were received and forwarded to the NEB. One amendment was not appealed. The NEB upheld the committee’s recommendation of rejection on eight bylaws amendments, recommended adoption of one amendment, and did not vote on one bylaws amendment due to a conflict of interest. (B10-08-2024) The full text of all bylaws and standing rule amendments approved for the 2024 ballot, as well as the full Bylaws Committee report, are on the NARFE website and on FEDHub. Voting on these amendments will begin after FEDcon24, which will be held in St Louis August 18-20, 2024, and continue to the end of September. The September issue of NARFE Magazine will have a paper ballot and instructions for voting online if so desired. The ballot will ask members to vote on each bylaw and standing rule amendment individually. Members may choose not to vote on any amendment.

Please take the time to study these bylaws and standing rule amendments and discuss them with other members in your chapter and federation. Participate in the discussions on FEDHub and at FEDcon24. Your Regional Vice President may hold virtual meeting sessions for the purpose of discussing the proposed amendments. Voting is one of the most important rights you have as a NARFE member!

Best Regards, Rhett Hamiter Bylaws Committee Chair 2024

48

NARFE MAGAZINE AUGUST 2024

BYLAWS AND STANDING RULE AMENDMENTS Bylaws and Standing Rule Amendments Recommended for Adoption NUMBER

SUBJECT

EFFECT

RECOMMENDATION

SRLC-04-2024

Remove NARFE Safe Deposit Box

Updates National Secretary/Treasurer Duties.

ADOPT

SRLC-05-2024

NARFE Dedicated Funds

Updates National Secretary/Treasurer Duties.

ADOPT

SRMAC-07-2024

End Active Federal Employees (AFEs) Renewal Dues Category

Deletes Reference to this multi-year special program.

ADOPT

BMAC-17-2024

Closure of Life Membership Dues Category

Updates Dues Category List. Current Life members will be grandfathered.

ADOPT

BNEB-02-2024

National Executive Board

Clarifies NEB governance authority.

ADOPT

Bylaws and Standing Rule Amendments Recommended for Rejection NUMBER

SUBJECT

EFFECT

RECOMMENDATION

BNEB-01-2024

NEB/Federation Elections

No member can run as a National and Federation office candidate simultaneously in the same year.

REJECT

BCH-03-2024

Chapter Mergers

Merge chapters without formally closing respective chapters.

REJECT

BFED-06-2024

Federation Bylaws Approval Process

National Secretary/Treasurer has final Federation Bylaws approval.

REJECT

B10-08-2024

Regional Vice Presidents (RVPs) Compensation

Update Regional Vice President minimum compensation.

REJECT

B10-13-2024

Vetting NARFE Members For Office Positions

Candidates for office required to have minimum qualifications.

REJECT

B10-14-2024

National President Appointing Members to Only NEB Chartered Committees

All committees would by chartered by NEB.

REJECT

BFED-16-2024

AMS Database Training for Officers and Members

Federation and Chapter officers training requirements for AMS database access and management.

REJECT

BCC-18-2024

National President residency requirement

Require National President to reside in the DC area.

REJECT

BCC-19-2024

National Secretary/Treasurer nonresidency status

Allow National Secretary/Treasurer to reside outside the DC area.

REJECT

B10: Bylaw Submitted by 10 members; BCC: Bylaw Submitted by Compensation Committee: BCH: Bylaw Submitted by Chapter; BFED: Bylaw Submitted by Federation; BLC: Bylaw Submitted by Bylaws Committee: BNEB: Bylaw Submitted by NEB; BMAC: Bylaw Submitted by Membership Advisory Committee; SR10: Standing Rule Submitted by 10 members; SRCH: Standing Rule Submitted by Chapter; SRFED: Standing Rule Submitted by Federation; SRLC: Standing Rule Submitted by Bylaws Committee; SRNEB: Standing Rule Submitted by NEB; SRMAC: Standing Rule Submitted by Membership Advisory Committee

For complete information about the election, including candidates for office and the complete text of each bylaws proposal and accompanying recommendation, as well as a link to discuss candidates and proposals on FEDHub, visit www.narfe.org/2024-narfe-national-election/.

NARFE MAGAZINE www.NARFE.org

49

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. (02/24)

Special Section

Consolidated Financial Statements for the Year Ended December 31, 2023 REPORT OF THE NATIONAL SECRETARY/TREASURER The NARFE consolidated financial statements were prepared on the accrual basis of accounting.

Revenue is recognized when earned and expenses recognized when incurred. The statements represent both the operating funds and investments of national NARFE and NARFE-PAC. Investments consist of mutual funds, corporate bonds, and exchange-traded funds and are recorded at their fair value. Further definitions and explanations will be found in the spreadsheets and Notes to Consolidated Financial Statements in the following pages.

The FY 2023 Total Revenues were $9,736,038 with $7,672,636 in Expenses resulting in a change of $2,063,402 in Net Assets. Net Assets have increased, and the cash flow continues to stay positive. This audit includes a consolidated statement that also shows donor restricted contributions of $766,128 in NARFE-PAC revenue.

For NARFE, 2023 continued as a year of transition, with several new personnel, and adjustments to the changing global economic climate. The finance team did a great job managing our overall finances during 2023 while the NARFE accounting system, for the first time in over a decade, had a major update that works much better with the database.

This is an election year in NARFE and the next few years are going to challenge NARFE’s management philosophy. Some progress is being made regarding how to stem the decrease in membership which drives our budget. Our legislative program priorities are also showing progress.

Several NEB members, including me, are terming out in our current positions at the end of 2024. As we pass the baton to a new NEB, we look forward to continued improvement.

—Kathryn E. Hensley

REPORT OF THE NATIONAL EXECUTIVE BOARD AUDIT COMMITTEE The National Active and Retired Federal Employees Association’s (NARFE) Audit Committee and staff met with the association’s external auditors, Marcum LLP, virtually, on April 29, 2024. The purpose of the meeting was to review and discuss the association’s annual financial audit for the year ended December 31, 2023.

The auditors provided a comprehensive review of NARFE’s Consolidated Financial Statements along with supplemental information pertaining to the governance of the audit. The auditors reported finding no material weaknesses in internal controls and have provided an unqualified opinion, the highest level of assurance, “a clean audit”, on the association’s financial statements.

Total assets increased by approximately $1.8 million to end the year at $15,150,456. The increase was mainly from the investments growing by $2,158,839 year over year. Revenue for 2023 was $8,604,935 net of the investment gains of $1.1 million. Expenses for the year were $7,672,636, up from the prior year because of continued inflation. The net results of the revenue less the expenses were a gain of $2.06 million including investment gains or $932,299 excluding investment gains. NARFE’s National Executive Board (NEB) measures the performance of the operations without the performance of the investments.

Pursuant to the Audit Committee’s recommendation, the NEB voted on June 17, 2024 to accept the 2023 Audited Financial Statements. The committee commends NARFE senior management and staff for their contributions to ensuring a “clean audit” for yet another year.

—Marshall L. Richards, Chair

NARFE MAGAZINE www.NARFE.org

51

Independent Auditors’ Report To the National Executive Board of National Active and Retired Federal Employees Association and Affiliate Opinion We have audited the consolidated financial statements of National Active and Retired Federal Employees Association and Affiliate (collectively referred to as “the Association”), which comprise the consolidated statement of financial position as of December 31, 2023, and the related consolidated statements of activities, functional expenses and cash flows for the year then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Association as of December 31, 2023, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Association and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Association’s ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of

52

NARFE MAGAZINE AUGUST 2024

assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Association’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Supplementary Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The consolidating supplementary information is presented for purposes of additional analysis of the consolidated financial statements, and is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used

to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.

an unmodified audit opinion on those audited consolidated financial statements in our report dated May 1, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2022, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.

Marcum LLP Other Matter Washington, DC Report on Summarized Comparative Information May 7, 2024 We have previously audited the Association’s 2022 NATIONAL ACTIVE AND RETIRED FEDERAL consolidated financial statements, and we expressed EMPLOYEES ASSOCIATION AND AFFILIATE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

National Active and Retired Federal Employees Association and Affiliate DECEMBER 2023 Consolidated Statement of Financial Position31,December 31, 2023 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2022) (With Summarized Financial Information for the Year Ended December 31, 2022

National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Financial Position 2023 2022 Assets December 31, 2017 (With Comparative Totals as of December 31, 2016 and 2015) Cash and cash equivalents Accounts receivable, net of allowance for credit losses of $2,000 Prepaid expenses Investments Property and equipment, net

Total Assets

$

2,149,856

$

182,712 127,859 10,538,296 2,151,733

2,404,985

169,214 78,690 8,379,457 2,304,382

$

15,150,456

$

13,336,728

$

203,345 375,509 96,087 3,676,373

$

450,920 343,351 90,572 3,716,145

Liabilities and Net Assets Liabilities Accounts payable and accrued liabilities Accrued vacation and payroll benefits Chapter dues payable Deferred revenue Total Liabilities

4,351,314

4,600,988

Net Assets Without donor restrictions With donor restrictions

9,812,113 987,029

7,737,541 998,199

Total Net Assets

10,799,142

8,735,740

Total Liabilities and Net Assets

Additional NARFE Financial Data (provided by NARFE Headquarters for members’ information) The salaries of the National Executive Board, as of December 31, 2023, are as follows (rounded): President: $130,000 Secretary/Treasurer: $116,447 Regional Vice Presidents: $14,476

$

15,150,456

$

13,336,728

In 2023, NARFE’s investments were held with these firms: •O perating Fund: Morgan Stanley and Merrill Lynch • Building Fund: Morgan Stanley •L ife Membership Trust Fund: Morgan Stanley • Contingency Fund: Morgan Stanley • PAC Fund: Raymond James

NARFE MAGAZINE www.NARFE.org

The accompanying notes are an integral part of these consolidated financial statements.

53

NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE

National Active and Retired Federal Employees Association and Affiliate CONSOLIDATED STATEMENT OF ACTIVITIES Consolidated Statement of Activities for the Year Ended December 31, 2023 THEYear YEAR ENDED DECEMBER 31,2022) 2023 (With Comparative Totals FOR for the Ended December 31,

(WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2022)

Revenue and Support Membership Contributions Investment income (loss), net Advertising Royalties Conferences and meetings Other income Net assets released from restrictions: Satisfaction of program restrictions

Without Donor Restrictions $

4,725,569 1,920,283 1,131,103 883,863 171,715 123,275 14,102

With Donor Restrictions $

2023 Total

-766,128 ------

$

2022 Total

4,725,569 2,686,411 1,131,103 883,863 171,715 123,275 14,102

$

5,045,375 2,322,389 (1,618,159) 1,209,176 236,525 299,227 6,631

777,298

(777,298)

--

--

9,747,208

(11,170)

9,736,038

7,501,164

Program Services Communications Membership services Political Action Committee Legislative program Federal benefits program Conferences and meetings

1,747,659 1,469,696 657,616 879,469 473,158 162,676

-------

1,747,659 1,469,696 657,616 879,469 473,158 162,676

2,147,836 1,409,074 964,699 1,030,168 384,925 739,622

Total Program Services

5,390,274

--

5,390,274

6,676,324

Supporting Services General and administrative Membership recruitment Fundraising

585,495 969,313 727,554

----

585,495 969,313 727,554

893,951 961,318 653,952

Total Supporting Services

2,282,362

--

2,282,362

2,509,221

Total Expenses

7,672,636

--

7,672,636

9,185,545

Change in Net Assets

2,074,572

(11,170)

2,063,402

(1,684,381)

Net Assets, Beginning of Year

7,737,541

998,199

8,735,740

10,420,121

Total Revenue and Support Expenses

Net Assets, End of Year

$

9,812,113

$

987,029

$

10,799,142

$

8,735,740

The accompanying notes are an integral part of these consolidated financial statements.

5

54

NARFE MAGAZINE AUGUST 2024

NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE

National Active and Retired Federal Employees Association and AffiliateSTATEMENT OF FUNCTIONAL EXPENSES CONSOLIDATED Consolidated Statement of Functional Expenses for the Year Ended December 31, 2023 FOR THE YEAR ENDED DECEMBER 31, 2023 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 3 (With Comparative Totals for the Year Ended December 31, 2022) Program Services

Communications

Salaries and benefits $ 446,574 Printing and postage 913,628 Contract services 111,260 Professional fees 76,501 Office expenses 111,301 Political contributions -feesRETIRED and taxes IONAL ACTIVEBank AND FEDERAL58,929 Advertising 3,830 PLOYEES ASSOCIATION AND AFFILIATE24,833 Depreciation and amortization 803 Meetings and conferences

Political Action Committee

Membership Services $

1,061,400 7,274 29,938 81,884 77,055 -78,572 3,900 33,111 96,562

LIDATED STATEMENT OF FUNCTIONAL EXPENSES

$

Total Expenses $ 1,747,659 $ 1,469,696 $ FOR THE YEAR ENDED DECEMBER 31, 2023 ANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2022)

-110,986 19,900 -23,560 478,000 25,170 ---657,616

$

152,768 4,210 119,035 78,330 48,786 -47,144 2,340 19,867 678 2022)

Conferences and Meetings $

Total Program Services

Salaries 60,433and benefits $ 2,220,298 Printing 1,754and postage1,043,115 Contract 7,485services 310,072 Professional 20,471 fees 420,742 Office expenses 18,728 381,006 Political--contributions478,000 Bank fees and taxes 288,387 19,643 Advertising 975 13,970 Depreciation 8,278 and amortization 110,922 Meetings 24,909 and conferences 123,762

Total Expenses 473,158 $ 162,676 $ 5,390,274 Supporting Services

embership cruitment

Fundraising

207,070 179,736 91,710 40,942 54,388 -39,286 332,640 16,555 6,986

$

969,313

$

Total Supporting Services

Membership General and Membership Communications Services Administrative Recruitment $$

$ $ 1,747,659 585,495 $ $1,469,696 969,313$

2023 Communications Total

Salaries 139,334and benefits $ 699,041 $ $ Printing 2,806and postage 187,805 Contract 472,410services 586,574 Professional 32,754 fees 135,109 Office expenses 33,565 144,136 Political--contributions -Bank fees and taxes 129,654 31,429 Advertising 1,560 337,125 Depreciation 13,244 and amortization 54,632 Meetings 452 and conferences8,286 Total Expenses 727,554 $

446,574 352,637 $ $1,061,400 207,070$ 913,628 7,274 5,263 179,736 111,260 29,938 22,454 91,710 76,501 81,884 61,413 40,942 111,301 77,055 56,183 54,388 -- --- -58,929 78,572 58,939 39,286 3,830 3,900 2,925 332,640 24,833 33,111 24,833 16,555 803848 96,562 6,986

Membership 2022 Services Total

499,123 5,263 22,454 163,556 101,576 -58,929 2,925 24,833 810

$

Conferences and Meetings

General and Administrative

152,768 $ 60,433 $ 2,220,298 $ 352,637 4,210 1,754 1,043,115 5,263 119,035 7,485 310,072 22,454 78,330 20,471 420,742 61,413 48,786 18,728 381,006 56,183 --478,000 -47,144 19,643 288,387 58,939 NATIONAL ACTIVE AND RETIRED FEDERAL 2,340 975 13,970 2,925 EMPLOYEES ASSOCIATION AND AFFILIATE 19,867 8,278 110,922 24,833 678 24,909 123,762 848

M

$

CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES

Program Services

Political Federal Total Action Legislative Supporting Benefits Committee Fundraising ProgramServices Program

$

Total Program Services

$ 879,469 $ 473,158 $ YEAR 162,676 $ DECEMBER 5,390,274 $ 2023 585,495 $ FOR THE ENDED 31, (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DEC

Supporting Services

Federal Benefits Program

Federal Benefits Program

Legislative Program

Total 2023Conferences 2022 Program Totaland Meetings TotalServices

General Administr

-$ 499,123 $ 152,768 $ 60,433 $ 2,220,298 $ 352 139,334 $ 699,041 $ 2,919,339 $ 3,728,833 110,986 2,806 5,263 187,805 4,2101,230,920 1,754 1,399,109 1,043,115 5 19,900 22,454 586,574 119,035 896,646 7,485 843,385 310,072 22 472,410 --32,754 163,556 135,109 78,330 555,851 20,471 583,754 420,742 61 NATIONAL FEDERAL 56 23,56033,565 101,576 144,136 48,786ACTIVE 18,728RETIRED 381,006 525,142 AND 478,087 478,000 -- EMPLOYEES -- 478,000 -- 774,975 ASSOCIATION AND 478,000 AFFILIATE --25,17031,429 58,929 129,654 47,144 418,041 19,643 283,601 288,387 58 -- 1,560 2,925 2,340STATEMENT 975 CONSOLIDATED OF FUNCTIONAL 337,125 351,095 298,62313,970EXPENSES 2 --13,244 24,833 54,632 19,867 165,554 8,278 197,474 110,922 24 -- 452 810 8,286 678 YEAR 24,909 123,762 FOR THE ENDED DECEMBER 31, 2023 132,048 597,704 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DEC

$ 879,469 $ 473,158 $ 162,676 $ 5,390,274 $ 7,672,636 $ 657,616 727,554 $ 2,282,362 $ 9,185,545 Program Services Political Action Committee

Federal Benefits Program

Legislative Program

446,574 2,919,339 $ 913,628 1,230,920 111,260 896,646 76,501 555,851 111,301 525,142 -478,000 58,929 418,041 3,830 351,095 24,833 165,554 803 132,048

$1,061,400 3,728,833$ 7,274 1,399,109 29,938 843,385 81,884 583,754 77,055 478,087 -774,975 78,572 283,601 3,900 298,623 33,111 197,474 96,562 597,704

-110,986 19,900 -23,560 478,000 25,170 ----

$

2,282,362 $ $ 1,747,659 7,672,636 $

$1,469,696 9,185,545$

657,616

$

499,123 5,263 22,454 163,556 101,576 -58,929 2,925 24,833 810

$

879,469

$

Total Program Services

Conferences and Meetings

152,768 4,210 119,035 78,330 48,786 -47,144 2,340 19,867 678

$

473,158

$

60,433 1,754 7,485 20,471 18,728 -19,643 975 8,278 24,909

$

162,676

$

$

General Administr

2,220,298 1,043,115 310,072 420,742 381,006 478,000 288,387 13,970 110,922 123,762

$

5,390,274

$

NARFE MAGAZINE www.NARFE.org The accompanying notes are an integral part of these consolidated financial statements.

585

55

352 5 22 61 56

58 2 24

585

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,Affiliate 2023 National Active and Retired Federal Employees Association and (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2022) Consolidated Statement of Cash Flows for the Year Ended December 31, 2023 (With Comparative Totals for the Year Ended December 31, 2022) Cash Flows From Operating Activities Change in net assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization Net realized and unrealized losses (gains) Changes in assets and liabilities: Accounts receivable Prepaid expenses Accounts payable and accrued liabilities Accrued vacation and payroll benefits Chapter dues payable Deferred revenue

2023 $

2022

2,063,402

$ (1,684,381)

165,554 (742,990)

197,474 1,949,546

(13,498) (49,169) (247,575) 32,158 5,515 (39,772)

(11,608) 61,274 289,732 (29,117) 15,587 (86,510)

Net Cash Provided by Operating Activities

1,173,625

701,997

Cash Flows From Investing Activities Purchases of property and equipment Purchases of investments Proceeds from sales of investments

(12,905) (2,534,918) 1,119,069

(8,631) (700,898) 376,717

Net Cash Used in Investing Activities

(1,428,754)

(332,812)

Net (Decrease) Increase in Cash and Cash Equivalents

(255,129)

369,185

Cash and Cash Equivalents, Beginning of Year

2,404,985

2,035,800

Cash and Cash Equivalents, End of Year

$

2,149,856

$

2,404,985

Supplemental Information Income taxes paid

$

184,020

$

37,780

The accompanying notes are an integral part of these consolidated financial statements.

National Active and Retired Federal Employees Association and Affiliate Notes to Consolidated Financial Statements December 31, 2023 programs. Ten percent of all eligible financial statements of NARFE. The federations’ bylaws must adhere to member national dues collected are NARFE’s bylaws. passed through to these federations to NARFE has created a political action facilitate local activities. In addition, Organization: National Active and committee called NARFE PAC. there are 783 chapters affiliated with Retired Federal Employees Association NARFE that are located in the United (“NARFE”) was established in 1921 to Basis of Accounting: These States and some international locations. advance the general welfare of its more consolidated financial statements The chapters are established by members than 135,000 members and to aid them have been prepared on the accrual to increase the scope and effectiveness of in securing their rights under federal basis of accounting in accordance with NARFE. Chapter dues are established by retirement laws. NARFE is incorporated accounting principles generally accepted the chapters and are billed and collected under the laws of District of Columbia. in the United States of America (GAAP). by NARFE with the national dues.

Its programs include legislative, Consequently, revenue is recognized NARFE rebates to the chapters one-sixth consolidated financial statements. federal benefits, communications The accompanying notes are an integral part of these when earned and expenses are of the national fee charged for all new and conferences. These activities are recognized when incurred. members joining chapters. primarily funded by membership dues 7 The federations and chapters Principles of Consolidation: The and contributions and revenue derived are independent and autonomous accompanying financial statements as from advertising. organizations. As NARFE has no of and for the year ended December There are fifty-four (54) federations, economic interest in or control of 31, 2023, of NARFE and its affiliate, located in the United States, District of federations and chapters affiliates, their NARFE PAC (collectively referred Columbia, Panama, Puerto Rico, and financial activities are not included to as “the Association”) have been the Philippines, that are affiliated with consolidated because they are NARFE and conduct local independent in the accompanying consolidated

NOTE 1 – NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

56

NARFE MAGAZINE AUGUST 2024

under common control. All material intercompany balances and transactions have been eliminated on consolidation.

Cash and Cash Equivalents: Cash and cash equivalents are composed of demand deposits and money market funds.

Accounts Receivables: Accounts receivable are primarily derived from program income and are recorded at net realizable value. At each statement of financial position date, the Association recognizes an expected allowance for credit losses. In addition, also at the reporting date, this estimate is updated to reflect any changes in credit risk since the receivable was initially recorded.

The estimate is calculated on a pooled basis where similar risk characteristics exist. The Association utilized the loss rate methodology to determine historical credit losses for each risk pool. The loss rate is based on management’s historical collection experience, adjusted for management’s expectations as well as current and future economic conditions.

As of December 31, 2023, the Association had not increased its historical loss rate, as receivable amounts are due within one year, and there were no current economic factors that indicated changes were necessary. Uncollectable accounts are written off when all efforts to collect these receivables have been exhausted and there is no possibility of recovery.

Recoveries of accounts receivable previously written off are recorded when received as an offset to credit loss expenses in the year of recovery, in accordance with the Association’s accounting policy election.

Investments: Investments consist of mutual funds, corporate bonds and exchange-traded funds. Investments are recorded in the accompanying consolidated financial statements at their fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability through an orderly transaction between market participants at the measurement date. Purchases and sales are reflected on a trade-date basis.

Interest, dividends and realized gains or losses are recorded when earned.

Changes in the fair value of the portfolio are recorded as unrealized gains or losses.

Fair Value of Financial Instruments: In accordance with the accounting standards for fair value measurement for those assets and liabilities that are measured at fair value on a recurring basis, the Association

has categorized its applicable assets and liabilities measured at fair value into a required fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level-input that is significant to the fair value measurement of the instrument.

Applicable financial assets and liabilities are categorized on the basis of the inputs to the valuation techniques as follows: Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the client has the ability to access.

Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

As of and for the year ended December 31, 2023, only the Association’s investments, as described in Note 2 to these consolidated financial statements, were measured at fair value on a recurring basis.

Property and Equipment: All acquisitions of property and equipment greater than $1,500 and an economic life in excess of one year are capitalized at cost. Depreciation and amortization is computed by using the straight-line method based upon the estimated useful lives of the assets. Building and improvements are recorded at cost and depreciated using the straight-line method over their estimated useful lives of 20 to 40 years. Furniture, equipment and software are recorded at cost and depreciated using the straight-line method over their estimated useful lives of three to eight years. Expenditures for major repairs and improvements that extend the useful life of an asset are capitalized, whereas expenditures for minor repairs and maintenance costs are expensed when incurred.

The cost of property and equipment

retired or disposed of is removed from the accounts along with the related accumulated depreciation, and any gain or loss is reflected in revenue and support or expenses in the accompanying consolidated statement of activities.

Classification of Net Assets: NARFE’s net assets are reported as follows: • Net assets without donor restrictions represent the portion of expendable funds that are available for any purpose in performing the primary objectives of the Association at the discretion of the Association’s management and the National Executive Board (“the Board”).

From time to time, the Board designates a portion of these net assets for specific purposes, which makes them unavailable for use at management’s discretion. The Board has designated $2,000,000 of net assets without donor restrictions to serve as working capital reserve to secure the Association’s long-term financial viability. Also included in board-designated net assets is the life membership fund in the amount of $1,607,907.

• Net assets with donor restrictions represent funds that are specifically restricted by donors for use in various programs and/or for specific periods of time. These donor restrictions can be temporary in nature in that they will be met by actions of the Association or by the passage of time. Other donor restrictions are perpetual in nature, whereby the donor has stipulated that the funds be maintained in perpetuity. As of December 31, 2023, the Association had no net assets with donor restrictions that are required to be maintained in perpetuity.

Revenue Recognition Membership Dues: Membership dues are on an anniversary-date basis and are recognized ratably over the membership period since there are no distinct performance obligations and the general member benefits are considered a bundled group of performance obligations that are delivered to members throughout the membership period. Life membership dues are recognized as revenue over the duration of the life membership based on the collective average life expectancy for life members, according to life expectancy tables. Accordingly, dues paid by members in advance of the reporting period to which the dues pertain are reported as deferred revenue in the accompanying consolidated statement of financial position.

NARFE MAGAZINE www.NARFE.org

57

Contributions: Unconditional contributions received are recorded as revenue with or without donor restrictions, depending on the existence and/or nature of any donor stipulations.

Donor restricted contributions are reported as an increase in net assets with donor restrictions, depending on the nature of the stipulation.

When a restriction expires (that is, when a stipulated time restriction ends or purpose of a restriction is accomplished), net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the accompanying consolidated statement of activities as net assets released from restrictions.

The revenue is recognized when earned according to contractual agreements with each organization.

Conferences and meetings: Conferences and meetings revenue consists of registrations, event sales and sponsorship fees and is recognized in the year in which the conference takes place. Revenue from these activities received in advance of the meeting is reported as deferred revenue in the accompanying consolidated statement of financial position.

directly to the programs those items support. Shared costs such as office expenses are allocated to the functional area and the programs pro rata based on estimated time and efforts by employees.

Estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

Impairment of Long-Lived New Accounting Pronouncement: Assets: In accordance with the In June 2016, FASB issued ASC Topic provisions of Financial Accounting 326, Financial Instruments – Credit Standards Board (FASB) Accounting Losses, which significantly changed how Standards Codification Topic 360, Investment Income: Realized entities will measure credit losses for Property, Plant and Equipment, and unrealized gains and losses and most financial assets and certain other the Association reviews its property investment income (loss) derived from instruments that are not measured at fair for impairment whenever events or investment transactions are included value through change in net assets. The changes in circumstances indicate as income in the year earned. most significant change in this standard that the carrying value of an asset may is a shift from the incurred loss model Advertising: Advertising revenue not be recoverable. If the fair value is to the expected loss model. Under the is recognized based upon when the less than the carrying amount of the standard, disclosures are required to advertisements are published, which is asset, an impairment loss is recognized consistent with when the performance for the difference. As of December provide users of the financial statements obligation is satisfied. Revenue from 31, 2023, the Association has not with useful information in analyzing an these activities received in advanceACTIVE recognized an impairment loss. entity’s exposure to credit risk and the NATIONAL AND RETIRED FEDERAL of the period to which the revenue measurement of credit losses. Financial EMPLOYEES ASSOCIATION AND AFFILIATE Functional Allocation of Expenses: pertains is reported as deferred revenue assets held by the Association that are The costs of providing the various in the accompanying consolidated subject to the guidance in FASB ASC 326 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS programs and other activities have been statement of financial position. were accounts receivable. The Association summarized on a functional basis in the FOR THE YEAR ENDED DECEMBER 31, of 2023 adopted the standardeffective January 1, Royalties: The Association accompanying statement functional 2023. The impact of the adoption was not receives various royalties from other expenses. Expenses directly attributed considered material to the consolidated organizations. These royalties are to a specific functional area of the 2 – INVESTMENTS FAIR VALUEAssociation MEASUREMENT NOTEfrom financial statements and primarily primarily membership AND benefits are reported as expenses of offered to members of the Association. those functional areas and are charged resulted in enhanced disclosures only.

The following table summarizes the Association’s assets measured at fair value on a recurring NOTE 2 – INVESTMENTS AND VALUE MEASUREMENTS basis, aggregated by type andFAIR fair value hierarchy level within which those measurements The following summarizes the Association’s assets measured at fair value on a recurring basis, aggregated by type and fair weretable made: value hierarchy level within which those measurements were made: Quoted Prices in Active Markets for Other Significant Assets/ Observable Unobservable Total Liabilities Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Mutual funds: Equity Fixed-income Certificate of deposits Exchange-traded funds Corporate bonds

$ 6,165,638 $ 6,165,638 $ -- $ 2,177,482 2,177,482 -1,300,786 -1,300,786 460,314 460,314 -434,076 -434,076

------

Total Investments

$ 10,538,296 $ 8,803,434 $ 1,734,862 $

--

For the year ended December 31, 2023, the Association used the following methods and significant assumptions to estimate fair For the year recorded ended December 31, 2023, the Association used the following methods and value for investments at fair value: significant assumptions to estimate fair value for investments recorded at fair value: Mutual funds and exchange-traded funds – Value of these funds is based on quoted market prices in active markets.

Mutual fundsatand funds the – Value of cash theseflows fundsbased is based on quoted Corporate bonds – Valued fairexchange-traded value by discounting related on current yields of similar instruments with market prices in active markets. comparable characteristics.

Certificate of deposits and corporate bonds – Valued at fair value by discounting the

58

related cash flows2024 based on current yields of similar instruments with comparable NARFE MAGAZINE AUGUST characteristics.

FOREQUIPMENT THE YEAR ENDED DECEMBER 31, 2023 NOTE 3 – PROPERTY AND AND RELATED DEPRECIATION NOTE 3 – PROPERTY AND EQUIPMENT AND RELATED DEPRECIATION The Association held the following property and equipment as of December 31, 2023: heldEthe followingAND property and equipment as of December 31, 2023: NOTEThe 3 – Association PROPERTY AND QUIPMENT RELATED DEPRECIATION Land 3 – PROPERTY AND EQUIPMENT AND RELATED DEPRECIATION $ 700,000 NOTE Land 700,000 Building and building 4,618,392 The Association held the theimprovements followingproperty property and equipment asDecember of December 31, 2023: The Association held following and equipment as of 31,$2023: Building and 4,618,392 Furniture and building computerimprovements equipment 2,085,552 Furniture and computer equipment 2,085,552 Land $ 7,403,944 700,000 Total Property and Equipment Building and building improvements 4,618,392 Total Property and Equipment 7,403,944 Less: Accumulated Depreciation (5,252,211) Furniture and computer equipment 2,085,552 Less: Accumulated Depreciation (5,252,211) Property and Equipment, Net $ 2,151,733 Total Property and Equipment Property and Equipment, Net $ 7,403,944 2,151,733 Less: Accumulated Depreciation Depreciation and amortization expense was $165,554 for the year ended December(5,252,211) 31, 2023.

Depreciation andEquipment, amortizationNet expense was $165,554 for the year ended December 31, 2023.

Property and $ 2,151,733 NOTEDepreciation 4 – NET ASSETS amortization expense was $165,554 for the year ended December 31, 2023.

Depreciation and and amortization expense was $165,554 for the year ended December 31, 2023.

NOTE 4 – NET ASSETS NET ASSETS WITHOUT DONOR RESTRICTIONS AET SSETS WITHOUT DONOR RESTRICTIONS NOTEN4ET –N ASSETS NOTE 4 – NET 31, ASSETS As of December 2023, the Association’s net assets without donor restrictions were AsETof December 31, 2023, Association’s net assets without donor restrictions were Net Assets Without Restrictions composed ofW the following: N ASSETS ITHOUT DDonor ONORthe RESTRICTIONS composed of the 31, following: As of December 2023, the Association’s net assets without donor restrictions were composed of the following: $ 6,204,206 AsUndesignated of December 31, 2023, the Association’s net assets without donor restrictions were Undesignated $ 1,607,907 6,204,206 Board-designated life membership fund composed of the following: life membership 1,607,907 Board-designated operating reservefund 2,000,000 Board-designated operating reserve 2,000,000 Undesignated $ 9,812,113 6,204,206 Total Net Assets Without Donor Restrictions $ Board-designated life membership fund 1,607,907 Total Net Assets Without Donor Restrictions $ 9,812,113 Board-designated reserve 2,000,000 NET ASSETS WITH Doperating ONOR RESTRICTIONS NET ASSETS W ITH DWithout ONOR RESTRICTIONS Total Net Assets Donor Restrictions $ 9,812,113 Net Assets With Donor Restrictions As of December 31, 2023, net assets with donor restrictions were available for the following NATIONAL ACTIVE AND RETIRED FEDERAL As of 31, net assets withdonor donor restrictions were available forfollowing the following purposes: AsET ofADecember December 31,D2023, 2023, net assets with restrictions were available for the purposes: N SSETS WITH ONOR R ESTRICTIONS EMPLOYEES ASSOCIATION AND AFFILIATE purposes: PAC –31, political contributions $ following 944,576 AsNARFE of December 2023, net assets with donor restrictions were available for the NARFE PACNOTES – political $ 944,576 TOcontributions CONSOLIDATED FINANCIAL STATEMENTS Alzheimer’s fund 42,453 purposes: Alzheimer’s fund 42,453 Total Net Assets With Donor Restrictions $ 987,029 FORDonor THE YEAR ENDED DECEMBER 31, 2023 NARFE PAC – political contributions $$ 944,576 Total Net Assets With Restrictions 987,029 Alzheimer’s fund 42,453 Total Net Assets With Donor Restrictions NOTE 5 – REVENUE FROM CONTRACTS WITH CUSTOMERS

$

987,029

NOTE 5 – REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table table provides information about significant changes in the deferred membership revenue for The following provides information about significant changes in Association’s the Association’s the year ended Decemberrevenue 31, 2023: deferred membership for the year ended December 31, 2023: 15 15 Deferred membership revenue, beginning of year $ 3,564,781 Membership revenue recognized that was included in deferred membership revenue at the beginning of year (2,321,268) 15 Increase in deferred membership revenue due to cash received during the period 2,304,021

Deferred Membership Revenue, End of Year

$ 3,547,534

NOTE 6 –6R–ISKS AND COMMITMENTS NOTE RISKS AND COMMITMENTS CONCENTRATION OFOF CREDIT RISK RISK CONCENTRATION CREDIT

The Association maintains its cash and cash equivalents with a certain commercial financial institution, which The Association maintains its cash and cash equivalents with aInsurance certain commercial financial aggregate balance, at times, may exceed the Federal Deposit Corporation (“FDIC”) insured limit of $250,000 institution, which aggregate balance, at times, may exceed the Federal Deposit Insurance per depositor per institution. As of December 31, 2023, the amount in excess of the maximum limit insured by the Corporation (“FDIC”) insured limit of $250,000 per depositor per institution. As of FDIC was approximately $1,743,000. The Association monitors the creditworthiness of this institution and has not December 31, 2023, the amount in excess of the maximum limit insured by the FDIC was experienced any credit losses on its cash and cash equivalents. approximately $1,743,000. The Association monitors the creditworthiness of this institution and has not experienced any credit losses on its cash and cash equivalents.

INVESTMENT RISK

The Association invests in mutual funds, certificates of deposit, exchange-traded funds and corporate bonds. These INVESTMENT RISK investments are exposed to various risks, such as interest rate, market volatility, and credit risks. Market risks include global events which invests could impact thefunds, valuecertificates of investment securities, such as pandemic The Association in mutual of deposit, exchange-traded funds andor international conflict. Due to the level of risk associated with certain securities, is at reasonably possible that changes in the values corporate bonds.

These investments areinvestment exposed to various risks, it such asleast interest rate, market of investment securities will occur the include near term and that which such changes could affect the Association’s volatility, and credit risks.

Marketinrisks global events could impact thematerially value of investment securities, such as pandemic or international conflict. Due to the level of risk consolidated financial statements. associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the Association’s consolidated financial statements.

NARFE MAGAZINE www.NARFE.org

59

FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 7 – AVAILABILITY AND LIQUIDITY Association regularly liquidity required to meet its annual operating needs and NOTE 7 –The AVAILABILITY ANDmonitors LIQUIDITY

other contractual commitments, while also striving to preserve theoperating principal needs and return the contractual commitments, The Association regularly monitors liquidity required to meet its annual andon other investment of its funds.

The Association’s financial assets available within one year of the while also striving to preserve the principal and return on the investment of its funds. The Association’s financial assets available statement of financial position date for general expenditures at December 31, 2023, were as within one year of the statement of financial position date for general expenditures at December 31, 2023, were as follows: follows: Cash and cash equivalents Accounts receivable Investments Total Financial Assets Available Within One Year Less: Amounts unavailable for general expenditures within one year due to donor’s restriction with purpose restriction Financial Assets Available to Meet General Expenditures Within One Year

$ 2,149,856 182,712 10,538,296 12,870,864

(987,029) $ 11,883,835

The Association has various sources of liquidity at its disposal, including cash and cash equivalents and investments, which are available for general expenditures, liabilities and 31,financial 2023, and determined that there compensation. contributions NOTE 7 (CONT.) other obligations as they come due.

ManagementTotal is focused on sustaining the were noand matters that would require made by Association were through monitoring The Association hasofvarious sources throughout liquidity the Association thethe year.

This is done recognition approximately $53,400 for the the Association’s needs on a regular basis.

As ayear result, management is in the consolidated of liquidityreviewing at its disposal, including cash flow financial ended December 31, 2023. aware of the cyclical cash flow related to the Association’s variousstatements or that may cash and cash equivalents andnature of the Association’s havecurrent an effect on its tax-exempt funding and is therefore able to ensure that there is TAXES cash available to meet investments, whichsources are available NOTE 9 – INCOME status.

As of December 31, 2023, needs. liabilities As part of its liquidity plan, excess cash is invested in publicly traded for generalliquidity expenditures, The Association is exempt from there are investment vehicles, including mutual funds, or totaxes support organizational Theno audits for any tax and other obligations as they come federal income under Section initiatives. periods that are currently pending Association can liquidate anytime, therefore the investments available due. Management is focused on its investments 501(c)(5) of theand Internal Revenue Code are meet currentliquidity cash flowofneeds. (“IRC”). However, income from certain or in progress. It is the Association’s sustaining to the financial policy to recognize interest and/ the Association throughout the year. activities not directly related to the or penalties related to uncertainty This is done through monitoring and Association’s tax-exempt purpose NOTEthe 8 –Association’s PENSION PLAN in income taxes, if any, in income reviewing cash flow is subject to taxation as unrelated tax or interest expense. As of needs on a regular basis. As a result, business income. The Association Theis Association a Retirement Savings Plan (“the Plan”). Employees areDecember eligible to 31, 2023, the Association management aware of thehas cyclical generates unrelated business income participate in the cash Plan flow on the first day of the month coinciding with or next following the had no accruals for interest and/or nature of the Association’s from advertising. The Association’s employee’s hire date.

Employees become eligible for employer matching fundspenalties. on the first related to the Association’s various provision for unrelated business day ofand the Plan Year (January the first day of the seventh month of the Plan Year (July funding sources is therefore able 1) orincome tax expense was approximately NOTE 10 – PRIOR YEAR 1) coinciding withavailable or next following hire date. Once eligible, an employee is 100% vested. to ensure that there is cash $114,000 for the year ended December SUMMARIZED FINANCIAL INFORMATION to meet current liquidity needs. As 31, 2023.

The accompanying consolidated part of its liquidity plan, excess cash is NARFE PAC is subject to federal financial statements include certain invested in publicly traded investment income taxes under IRC Section 527 17summarized comparative prior year vehicles, including mutual funds, or with respect to certain investment information in total, but not by net to support organizational initiatives. income. For the years ended asset class. Such information does not The Association can liquidate its December 31, 2023 no provision for include sufficient detail to constitute investments anytime, and therefore federal or state income taxes was a presentation in conformity with the investments are available to meet made, as there was no significant GAAP. Accordingly, such information current cash flow needs. taxable income. should be read in conjunction with The Association follows the NOTE 8 – PENSION PLAN the Association’s financial statements authoritative guidance relating to The Association has a Retirement for the year ended December 31, accounting for uncertainty in income Savings Plan (“the Plan”). Employees 2022, from which the summarized taxes included in FASB ASC Topic are eligible to participate in the information was derived.

740, Income Taxes.

These provisions Plan on the first day of the month provide consistent guidance for the NOTE 11 – SUBSEQUENT coinciding with or next following accounting for uncertainty in income EVENTS the employee’s hire date. Employees taxes recognized in an entity’s The Association’s management has become eligible for employer matching financial statements and prescribe a evaluated, for potential recognition funds on the first day of the Plan threshold of “more likely than not” or disclosure, events and transactions Year (January 1) or the first day of the for recognition and derecognition of through May 7, 2024, the date the seventh month of the Plan Year (July tax positions taken or expected to be financial statements were available to 1) coinciding with or next following be issued. There were no subsequent hire date. Once eligible, an employee is taken in a tax return.

The Association performed an events identified that require 100% vested. The Association matches evaluation of uncertainty in income recognition or disclosure in these 60% of each employee’s voluntary taxes for the year ended December consolidated financial statements. contribution up to 6% of annual

60

NARFE MAGAZINE AUGUST 2024

NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE CONSOLIDATING SCHEDULE OF FINANCIAL POSITION Supplementary Information FOR THE YEAR ENDED DECEMBER 31, 2023 Consolidating Schedule of Financial Position December 31, 2023 Assets Cash and cash equivalents Accounts receivable, net of allowance for credit losses of $2,000 Due from affiliate Prepaid expenses Investments Property and equipment, net Total Assets

Association $

1,468,823

NARFE PAC $

Eliminations

681,033

182,712 113,073 127,859 10,068,594 2,151,733

$

Total

--

-50 -469,702 --

$

2,149,856

-(113,123) ----

182,712 -127,859 10,538,296 2,151,733

$

14,112,794

$

1,150,785

$

(113,123)

$

15,150,456

Liabilities Accounts payable and accrued liabilities $ Accrued vacation and payroll benefits Due to affiliate Chapter dues payable Deferred revenue

202,151 375,509 -96,087 3,676,373

$

1,194 -113,123 ---

$

--(113,123) ---

$

203,345 375,509 -96,087 3,676,373

Total Liabilities

4,350,120

114,317

(113,123)

4,351,314

Net Assets Without donor restrictions With donor restrictions

9,720,221 42,453

91,892 944,576

---

9,812,113 987,029

--

10,799,142

Liabilities and Net Assets

Total Net Assets

NATIONAL ACTIVE AND RETIRED FEDERAL 9,762,674 1,036,468 EMPLOYEES ASSOCIATION AND AFFILIATE

Total Liabilities and Net Assets

$ 14,112,794 $ 1,150,785 $ CONSOLIDATING SCHEDULE OF ACTIVITIES

(113,123)

$

15,150,456

Consolidating Schedule ofFOR Activities THE YEAR ENDED DECEMBER 31, 2023 for the Year Ended December 31, 2023 Revenue and Support Membership Contributions Investment income Advertising Royalties Conferences and meetings Administrative fee Other income

Association $

Total Revenue and Support

4,725,569 1,928,466 1,088,647 883,863 171,715 123,275 113,123 14,102

NARFE PAC $

9,048,760

-757,945 42,456 ------

Eliminations $

800,401

------(113,123) --

Total $

(113,123)

4,725,569 2,686,411 1,131,103 883,863 171,715 123,275 -14,102 9,736,038

Expenses

See independent auditors' report.

Program Services: Communications Membership services Political Action Committee Legislative program Federal benefits program Conferences and meetings

1,747,659 1,469,696 -879,469 473,158 162,676

--770,739 ----

--(113,123) ----

1,747,659 20 1,469,696 657,616 879,469 473,158 162,676

Total Program Services

4,732,658

770,739

(113,123)

5,390,274

Supporting Services: General and administrative Membership recruitment Fundraising

585,495 969,313 727,554

----

----

585,495 969,313 727,554

Total Supporting Services

2,282,362

--

--

2,282,362

Total Expenses

7,015,020

770,739

(113,123)

7,672,636

Change in Net Assets

2,033,740

29,662

--

2,063,402

Net Assets, Beginning of Year

7,728,934

1,006,806

--

8,735,740

Net Assets, End of Year

$

9,762,674

$

1,036,468

$

--

$

10,799,142

NARFE MAGAZINE www.NARFE.org

61

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 ADT/Bulldog Security Services | https://bulldogsecurityservice.partnerlinks.io/urns4ejdlhns Exclusive Offer for NARFE Members: NARFE members can enjoy discounted monthly monitoring rates, $0 installation fees, reduced activation fees, and a $500 equipment voucher for customizing their security and smart home systems with ADT monitoring. Enhance your home security with these exclusive benefits tailored just for you. Select the link for more details and fill out the contact page to speak to a security expert and place your order.

NEW!

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.

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 | www.legalshield.com/info/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 | https://www.purchasingpower.com/?domain=narfe

While not a discount program, Purchasing Power is an exclusive purchase program helps members buy brandname 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: STAYSTRONG

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

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

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

Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-of-the-art ultrasound technology in your neighborhood. Operator code BKHN075.

PRE-PLANNING

Neptune Society | 800-NEPTUNE (637-8863) | https://www.neptunesociety.com/NARFE

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 top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation.

TRAVEL, TRANSPORT & ENTERTAINMENT Choice Hotels International | 800-258-2847 | www.choicehotels.com

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

Collette Travel | 844-311-6563 | www.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 | www.hotelengine.com/join/24530f9

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 | https://partners.rentalcar.com/narfe/

NARFE members receive great rates with National Car Rental! At National, we pride ourselves on always providing you with unsurpassed convenience and choices. To make a reservation, call National Car Rental and reference Contract 5282909.

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 top-rated insurance carriers on Auto, Home, Renters, Pet insurance and more in a matter of minutes. Answer a few simple questions online or over the phone with our licensed insurance experts to compare multiple options that meet your specific needs. To review and choose what’s best for you, go to the link above or call 833-378-8224.

ADDITIONAL PERKS

The Way We Worked

Assisting NASA’s Astronauts NASA’s suit technician, Joe Schmitt, checks astronaut Scott Carpenter’s spacesuit before a spaceflight out of Cape Canaveral, FL. Two days later, on May 24, 1962, Mercury-Atlas 7 launched as the fourth crewed flight of Project Mercury. Behind every NASA mission, then and now, are hundreds—and at times thousands—of support staff, including suit technicians who ensure the astronauts’ space suits are functioning properly.

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.

64

NARFE MAGAZINE AUGUST 2024

DID YOU KNOW? In 1967, NASA turned the Aurora 7 spacecraft over to the Smithsonian Institution’s Air Museum, the forerunner of today’s National Air and Space Museum in Washington D.C. The museum loaned it to other facilities on a temporary basis, finally in 1986 to the Museum of Science and Industry in Chicago, where it remains on display today.

For more information, visit www.nasa.gov/history/60-yearsago-scott-carpenter-orbits-theearth-aboard-aurora-7/

CONTROL WHAT YOU CAN. INSURE WHAT YOU CAN’T. At whatever stage of life you’re in, or how well you have planned, events can happen that are simply beyond your control.

That is why NARFE has designed an insurance program to help provide our members with peace-of-mind protection against the unexpected.

NARFE Insurance Services-sponsored program

Whether providing life insurance, protecting your family’s health, securing your retirement, or purchasing coverage for a four-legged friend, the NARFE Insurance Services-sponsored program includes a full spectrum of products that can help you protect yourself and your loved ones at highly competitive rates available to NARFE members like you.

Products designed for NARFE members: Helping provide our members peace of mind in a world of uncertainty.

• Dental Plans

• Pet Insurance

• Hospital Indemnity and Short Term Recovery Insurance Plan

• Vision Insurance

• Senior Age Whole Life Insurance • Senior Term Life Insurance Plan

• Prescription Discount Card • Major Medical Insurance • AssistPlus

To learn more* about the NARFE Insurance Services-sponsored program, call 1-800-233-5764 or visit us at www.narfeinsurance.com

*Information includes costs, exclusions, limitations, reduction in benefits, and terms of coverage and carrier identification.

Coverages may vary and may not be available in all states.

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 103247 (8/24) Copyright 2024 AMBA. All rights reserved.

Easy Application Loan offers in minutes from any device

Higher Acceptance Rate1 All credit scores are encouraged to apply

Instant Funding Available Borrowers receive their loan proceeds instantly

Quick and accessible loans are available to National Active and Retired Federal Employees Association members that can be put towards any expense, examples below;

•

Vehicle/Car Repair

•

Education/Tuition

•

Consolidate Debt

•

Home Repairs

•

Vacation/Personal

•

Other

AFFINITY PARTNER

Sign up now at: app.bmgmoney.com/signup and submit your application today!

BMG Money, Inc. Customer Support | Phone: (800) 316-8507 | Email: Customer.service@bmgmoney.com

1

During 2022 69% of all loan applications were approved.

All loans marketed by BMG Money are made by WebBank, except, as of 12/08/2023 the loans made to residents of Illinois, Iowa, Nebraska, New Jersey, New York, Ohio, Rhode Island are made by BMG LoansAtWork, LLC.