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A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

SEPTEMBER 2026 VOLUME 102 ★ NUMBER 7

P. 22

What to Know When FEHB/PSHB Family Coverage Ends P. 32

Planning a Fulfilling Retirement

Special Feature

50 NARFE Election Voting Instructions 55 Financial Statements

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Contents SEPTEMBER 2026 COVER STORY PAGE 22

FEATURE PAGE 32

WHAT TO KNOW WHEN FEHB/PSHB FAMILY COVERAGE ENDS Federal Employees Health Benefits and Postal Service Health Benefits programs are important protections, but it is not permanent.

PLANNING A FULFILLING RETIREMENT Are you newly

retired and writing your next chapter? Fill those pages with these tips so you don’t get bored!

P. 32 Special Feature

50 NARFE Election Voting Instructions

55 Financial Statements Washington Watch

6 NARFE Lawsuit Challenges

Implementation of the Schedule Policy/Career Employment Category

7 NARFE Submits Comments in

Opposition to OPM’s Proposed Nondisclosure Agreement for Federal Employees

8 Advocacy on Election Day: How to Prepare for Midterms

9 New Eligibility Rules for FEHB and PSHB: What You Need to Know

12 Bill Tracker

Columns

4 From the President 20 Benefits Brief

Planning a Fulfilling Retirement

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

SEPTEMBER 2026 VOLUME 102 ★ NUMBER 7

P. 22

What to Know When FEHB/PSHB Family Coverage Ends

42 Managing Money Departments

16 Questions & Answers 17 Countdown to COLA

P. 32

Planning a Fulfilling Retirement

ON THE COVER Illustration by TGD

44 NARFE News 66 NARFE Perks 68 The Way We Worked

Connect with us! Visit us online at www.narfe.org Like us on Facebook NARFE National Headquarters Follow us on X @narfehq

REGIONAL VICE PRESIDENTS REGION I Jeff Anliker SEPTEMBER 2026 VOLUME 102 ★ NUMBER 7 EDITORIAL DIRECTOR Jenn Rafael CREATIVE SERVICES MANAGER Beth Bedard SENIOR CONTENT MANAGER Matt Sanderson ADDITIONAL GRAPHIC DESIGN TGD EDITORIAL BOARD William Shackelford, Cindy Reneé Blythe

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: mprimuth@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 NFB-NEWSLINE® 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 CINDY RENEÉ BLYTHE 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

NARFE HEADQUARTERS

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REGION II Paul Schwartz

(Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 240-838-2200 Email: schwartzpaul02@gmail.com

REGION III Lynn Harper

(Alabama, Florida, Georgia, Mississippi, South Carolina and Puerto Rico) Tel: 478-951-3260 Email: lynnlarry79@outlook.com

REGION IV Ed Konys

(Illinois, Indiana, Michigan, Ohio and Wisconsin) Email: rvpkonys@outlook.com

REGION V Linda Sawvell

(Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 563-340-4823 Email: Lsawvell262@gmail.com

REGION VI Patsy Ashton

(Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 504-452-3870 Email: rvp6@narfe.org

REGION VII Sharon Reese (Colorado, Southwest, Utah and Wyoming) Tel: 575-649-6035 Email: sreese346@gmail.com

REGION VIII John Almquist (California, Hawaii, Nevada and Republic of Philippines) Tel: 949-246-4378 Email: almquistjw@yahoo.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’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 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 © 2026, 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.

NARFE MAGAZINE SEPTEMBER 2026

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From the President

Elections, Member Engagement and the 120th Congress

s you read this message, summer is drawing to a close, and many of us have returned home after an exciting and fulfilling FEDcon26. I hope those who attended our premier conference gained insights from our various tracks and speakers that will enable you to

help NARFE grow by becoming a leader in your chapter or federation. Detailed information on everything that occurred at the conference will be available in the November issue and on the NARFE website. This information will include which amendments to the bylaws were passed and which newly elected National Officers and Regional Vice Presidents will serve on the 2027-2028 National Executive Board.

NARFE ELECTIONS

In this issue of NARFE Magazine, you can find the information that you need to obtain a mail-in ballot for the 2026 NARFE elections. This is the option available to you if you choose not to vote electronically. In addition to the names of the individuals seeking a national or regional position on the National Executive Board, the ballot includes several bylaws amendments for your consideration. The NARFE National Bylaws Committee received ten bylaws & three standing rule proposals. The final committee report is available on the website at www. narfe.org. Please review the proposals and provide your National Executive Board with guidance to ensure NARFE remains a viable organization. These amendments, if approved, could have a major impact on the future of the NARFE organization. In this election, your vote will provide leadership with the best chance of success and determine the direction NARFE will move in the future.

MEMBERSHIP ENGAGEMENT

With the assistance of Street Level Studios and BRG Communications, we continue to pursue new avenues to attract new members and make extra efforts to keep our existing members on the rolls. Resources are available from NARFE Headquarters to help all NARFE chapters and federations identify and recruit new members. If your chapter or federation needs new ideas or assistance, please get in touch with the Membership Engagement Department at NARFE Headquarters. If we all work together, we will succeed.

NARFE MAGAZINE SEPTEMBER 2026

NEW CONGRESS

Looking ahead, we must begin preparing to work with the new 120th Congress, which convenes in January 2027. With new congressional leadership, new members of Congress and new committee assignments, there come new agendas and new opportunities. The upcoming midterms will allow you to express your opinion on the future. We hope to have a Congress that is NARFE-friendly. But friendly or not, you can be certain that we will be working to continue to protect your earned benefits in 2027 and beyond. Now is the time to look ahead and plan. Stay alert and stay involved.

VERMONT FEDERATION

NARFE chapters and the federation are the backbone of our organization; we must rely on involved, interested members to become leaders and ensure the survival of NARFE. However, chapters and federations can’t continue to function and provide services to our members without strong leadership. For over 15 years, Mary Nadeau served as the Vermont Federation President with distinction. Her dedication to the Vermont members was exceptional. Unfortunately, due to personal circumstances, Mary has decided to step down from her position as Federation President. THANK YOU MARY!!!!! Vermont is still a federation with both loyal chapter and national-only members. At present, Regional Vice President Jeff Anliker is the sole point of contact for these members, and they need to be aware of this. If you are a Vermont member (Chapter or National-only) and believe that you are in the perfect position to guide the Vermont Federation, please get in touch with RVP Anliker or me. Our contact information is at the front of the magazine. I appreciate your support. REMEMBER: An interested member is an involved member!

WILLIAM SHACKELFORD NARFE NATIONAL PRESIDENT natpres@narfe.org

Become a Silver Circle contributor today 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.

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

Donate now to the Silver Circle at www.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.

NARFE Silver Circle

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

Washington Watch Washington Watch

NARFE Lawsuit Challenges Implementation of the Schedule Policy/ Career Employment Category

n June 3, 2026, President Donald Trump signed an Executive Order (EO) to reclassify approximately 8,000 federal positions originally in the competitive

service to the newly implemented Schedule Policy/Career (P/C) excepted service category. Under Schedule P/C, employees lose the civil service protections that ensure any disciplinary action is based on merit, and not political affiliation, nepotism or otherwise. NARFE and its co-plaintiff, the Government Accountability Project, had filed a lawsuit last February challenging the implementation of Schedule P/C. But proceedings in the lawsuit were delayed pending the issuance and finalization of regulations creating Schedule P/C and the June 3 executive order reclassifying employees into the new excepted service schedule. With the executive order, proceedings restarted, and NARFE filed an amended complaint reasserting its claims, including that the new Schedule P/C is contrary to the Civil Service Reform Act. Schedule P/C was originally implemented as Schedule F under the first Trump Administration

NARFE MAGAZINE SEPTEMBER 2026

in October 2020. However, the EO was quickly abolished when President Joe Biden was sworn into office in January 2021. Due to the tight turnaround, Schedule F was rescinded before any federal positions had the

opportunity to transition into the new employment category. When President Trump returned to office in 2025, he issued another EO to revamp Schedule F, but under the Schedule P/C name instead. In February 2026, the Trump Administration issued its “final rule” for Schedule P/C, which set the stage for the reclassification of thousands of nonpartisan civil servants into the new excepted service category, without enforceable protections against politically based termination. The June 2026 EO primarily affected career federal employees at the GS-15 and above levels;

SEPTEMBER ACTION ALERT: PROTECT MERITBASED CIVIL SERVICE SYSTEM

Visit NARFE’s Legislative Action Center at narfe.org to send a message to your lawmakers urging them to cosponsor the Saving Civil Service Act, H.R. 492/S. 134. This act would prohibit the implementation of Schedule P/C, ensuring the public’s expectations of a system that is efficient, fair, free from political interference, and staffed by honest, competent, and dedicated employees. Merit-based civil service rules are integral to preserving institutional knowledge and expertise within the federal government.

MYTH VS. REALITY MYTH: NARFE endorses candidates running for the House and Senate. REALITY: As a nonpartisan organization, NARFE does not endorse candidates running for any office. NARFE does produce a congressional voting scorecard to educate members on their legislators’ voting records on NARFE-related legislation, but this does not constitute any endorsement or lack thereof. Additionally, NARFE’s political action committee, NARFE-PAC, supports the campaigns of many congressional candidates, but it is a separate fund of NARFE, composed of voluntary contributions from our members and unrelated to any organizational dues.

however, several GS-14 and GS-13 positions were also affected. The top three departments affected by this EO implementation are the Department of Defense, the Department of Homeland Security, and the Department of Health and Human Services. In response to this executive order, NARFE President William Shackelford stated the following: “This action will undermine the effectiveness of the civil service in carrying out government operations on behalf of the American people. It paves the way for this and future administrations to remove more than 8,000 competent, nonpartisan, professional civil servants and replace them

with political cronies who are more apt to be incompetent or corrupt… The nonpartisan, merit-based civil service provides continuity through changing administrations. It ensures public servants’ primary allegiance is to the Constitution and laws of the United States rather than the individual temporarily holding the office of President. Schedule P/C’s evisceration of this practice for a large subset of federal employees weakens our civil service and our democracy. Not only do we believe this is a disastrous policy for our nation, but we also believe it is contrary to the Civil Service Reform Act and illegal. Our attorneys will continue to make that case in court. We also

continue to urge Congress to pass the Saving the Civil Service Act, H.R.492/S.134, to leave no doubt about its directive to maintain a nonpartisan civil service.” You can read NARFE’s full statement on our website. While this executive order affects only a fraction of the initially predicted 50,000 positions, its implementation establishes a dangerous precedent should this administration or future administrations decide to expand the scope of affected positions. NARFE will continue to advocate for federal employees and preserve a merit-based civil service.

the agreement solves a problem that does not exist. OPM points to a handful of leaks to justify imposing a single NDA across the entire civil service, yet it never identifies any gap in current law that the form would close. The Standards of Ethical Conduct, the Privacy Act, the Federal Records Act, classification requirements, agency data-security rules, the disciplinary process, and applicable criminal statutes already bind career employees. NARFE notes that OPM’s own notice concedes the form “does

not create new substantive restrictions,” which only reinforces that existing duties already govern employee conduct. NARFE also warns that the agreement’s definition of “Confidential Government Information” is dangerously vague. By reaching all “nonpublic, confidential, or proprietary information,” including personnel matters, procurement processes, and pre-decisional or deliberative

—BY ABBY PASQUELLA, POLICY AND PROGRAMS ASSOCIATE

NARFE Submits Comments in Opposition to OPM’s Proposed Nondisclosure Agreement for Federal Employees

ARFE has formally opposed the Office of Personnel Management’s (OPM) proposed “Confidential Government Information Nondisclosure Agreement,” submitting a detailed comment letter on June 23, 2026, that calls the measure unnecessary, overbroad, and constitutionally problematic. Filed through the federal rulemaking portal, the letter asks OPM to withdraw the draft nondisclosure agreement (NDA) entirely. At the center of NARFE’s objection is the argument that

SEE NDA ON P. 10 NARFE MAGAZINE www.NARFE.org

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.

Advocacy on Election Day: How to Prepare for Midterms

s we approach November and the midterm elections, the coverage of key races across the country will begin to dominate the news cycle. Amidst the various television networks, print publishers, and social media platforms, it can be a monumental lift to stay updated on your electoral races, and an even more difficult task to navigate conflicting narratives to arrive at the truth. However, as the only association dedicated to safeguarding the rights of all federal employees and retirees, NARFE is dedicated to providing our members with the education needed to make informed decisions, including how to approach your ballot.

WHAT ARE YOUR ISSUES

The entire basis of elections is to provide the people with control over who dictates the rules and regulations of society. Therefore, before you can properly choose the candidates you want to represent you, you must identify what topics are most impactful on your daily life, what you are passionate about, and how you want your elected officials to legislate in accordance with that. As a member of the federal community, you should pay attention to workforce-related topics, such as cost-of-living adjustments and pay raises, as well as benefits topics, such as Federal Employees Health Benefits (FEHB), Thrift Savings Plan (TSP) and Medicare. To begin your research, NARFE’s website is an excellent 8

NARFE MAGAZINE SEPTEMBER 2026

starting point as the “News,” “Advocacy,” and “Education” tabs are hubs of information all relevant to federal employees and annuitants. Specifically, NARFE’s Bill Tracker and Legislative Action Center will point you to legislation and calls to action that we have identified as the most important issues to focus on. We also identify key votes and bills—and what position your member of Congress took—in the Legislative Action Center and via our pre-election scorecard in our upcoming October issue.

WHO ARE YOUR CANDIDATES

Next, long before you arrive at your polling location, you should know the names that will appear on your ballot. The “bigger” races to be aware of at midterms are your U.S. Senate seats, your U.S. House of Representatives, and your governor. There are a few ways to find out who you need to learn about for the election cycle, including your county registrar’s sample ballot, browsing your state’s board or department of elections, and utilizing thirdparty organizations, such as vote. org, to see exactly what elections pertain to your address. Once you have identified the individuals who qualified for the midterm, you can gather information to determine if and how they will protect and promote the federal community’s interests. For incumbents, NARFE’s Scorecard and congress.gov are the first places to look to see a current official’s voting record on our top

pieces of legislation. For example, a candidate who voted against the repeal of the Windfall Elimination Provision and the Government Pension Offset may not be the best choice when determining who will safeguard our rights and earned benefits. Other aspects to consider include the individual’s connections to the federal workforce, how vocal they are about our issues, and whether they have received support from other federal-friendly organizations.

HOW WILL YOU ACT

Once you know how you stand and who on the ballot stands with you, the only step left is to formulate your voting plan for 2026 midterms. With the options of absentee voting, early voting, and traditional in-person electionday voting, there are many ways to make your voice heard. As you look ahead to November, if travel plans, health concerns, or other issues may affect your ability to show up at the polls, begin considering how to request a mail-in ballot. If you are available the days before, inquire with your local government offices how you can take advantage of early voting. And if you are like me and live for the “I voted” sticker you can proudly wear on election day, go ahead and block out an hour of your day to head to your assigned polling location and do your civic duty, not just for yourself, but for all federal employees, annuitants, and NARFE members! —BY NICOLE BLACKSTONE, GRASSROOTS AND POLICY MANAGER

New Eligibility Rules for FEHB and PSHB: What You Need to Know

he Office of Personnel Management (OPM) has issued a final rule, effective July 2, 2026, to implement the Federal Employees Health Benefits (FEHB) Protection Act of 2025 (FPA, H.R. 2193). Under this rule, federal and postal employees must provide official documentation to verify the eligibility of any family member added to their FEHB or Postal Service Health Benefits (PSHB) plans, including during Open Season. According to OPM, this measure is intended to reduce fraud, prevent improper enrollments, and protect

WHAT DOCUMENTS MAY BE REQUIRED?

taxpayers from an estimated $1 billion in annual losses due to ineligible enrollments.

WHAT YOU NEED TO KNOW ABOUT THE FINAL RULE

Before adding a family member (spouse, child, foster child, or disabled dependent) to your FEHB or PSHB plan, you must provide documentation verifying the following: • Qualifying Life Event or QLEs (such as marriage, birth, adoption, etc.) • Eligibility of family members for coverage

CONTRIBUTE TO

If you have family coverage or are enrolled as Self Plus One, keep copies of documents that verify your dependents’ eligibility. Examples include marriage certificates, birth certificates, adoption decrees, foster child certifications, and documents proving a disabled child’s eligibility beyond age 26.

DOES THIS AFFECT CURRENT FEHB/PSHB ENROLLEES?

Although the final rule primarily addresses government SEE RULES ON P. 10

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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

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.

NDA FROM P.7

material, the definition sweeps in nearly everything employees encounter. The letter stresses that non-public information is not the same as secret or legally protected information. Much of it can be lawfully shared through the Freedom of Information Act, with Congress, with an Inspector General or the Office of Special Counsel, with a union representative, or by an employee speaking as a private citizen on a matter of public concern. NARFE recommends narrowing the definition to information specifically protected by statute, regulation, privilege, classification, or court order. The comment letter raises broader concerns about transparency and accountability. Because the federal workforce serves the public rather than private shareholders, NARFE argues, layering a sweeping NDA over existing reporting obligations risks shifting the RULES FROM P.9

administrative oversight, it may still impact current enrollees. OPM may request verification for any covered family member at any time. If you do not provide the required documentation by the deadline, that family member may be removed from your health plan. The new rule does not change benefits, outof-pocket expenses, or coverage terms for current employees and retirees. Its purpose is to 10

NARFE MAGAZINE SEPTEMBER 2026

culture of public service toward secrecy and chilling First

… LAYERING A SWEEPING NDA OVER EXISTING REPORTING OBLIGATIONS RISKS SHIFTING THE CULTURE OF PUBLIC SERVICE TOWARD SECRECY AND CHILLING FIRST AMENDMENTPROTECTED SPEECH. Amendment-protected speech. Employees best positioned to identify waste, fraud, or threats to public health and safety may remain silent for fear that lawful communications could later be recast as violations. NARFE reserves particular concern for how the NDA interacts ensure compliance and prevent program waste. Having records readily available can help you respond

with OPM’s pending suitability and fitness rulemakings. Those proposals would emphasize nondisclosure compliance in fitness determinations and strip away independent review by the Merit Systems Protection Board. Together, they could turn the NDA into a removaland-debarment tool operating without independent oversight, leaving employees caught between refusing to sign and risking a false-certification claim later. Finally, NARFE cautions that the requirement would damage recruitment. Signaling institutional distrust of career employees and advertising that distrust in vacancy announcements would deter the mission-driven professionals the government depends on. For these reasons, NARFE respectfully urges OPM to withdraw the proposed agreement. —BY RJ THACKER, MANAGER, POLITICAL & LEGISLATIVE AFFAIRS

quickly if OPM or your agency conducts an eligibility review. —BY ELLIE DORSEY, FEDERAL BENEFITS INSTITUTE MANAGER

HAVE QUESTIONS ABOUT THE SOCIAL SECURITY FAIRNESS ACT? Visit NARFE’s Federal

Benefits Institute to find frequently asked questions our staff is compiling at https://www.narfe.org/advocacy/ social-security-fairness-act-frequently-asked-questions/. Members may also call 1-800-456-8410, and press 2 for federal benefits experts, or email fedbenefits@narfe.org.

NARFE Is the One Voice You Need During Open Season NARFE’s Open Season Webinar Series — FREE for NARFE Members THURSDAY, OCTOBER 22, 2 P.M. ET Medicare: To Part B or Not to B with Tammy Flanagan

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Michele Bollier

Tammy Flanagan

Mercedes Johnson

Kevin Moss

Federal benefits and retirement expert

Senior Editor with Checkbook’s Federal benefits and Guide to Health Plans retirement expert

FEDERAL BENEFITS INSTITUTE

NARFE BILL TRACKER

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

BILL NUMBER / NAME / SPONSOR H.R. 491 /S.624: Equal COLA Act/ Rep. James Walkinshaw, D-VA-11 / Sen. Alex Padilla, D-CA Cosponsors: H.R. 491: 80 (D) 3 (R) S. 624: 18 (D) 2 (I)

WHAT BILL WOULD DO Provides full cost-of-living adjustments, based on the relevant change in consumer prices, to Federal Employees Retirement System annuities.

LATEST ACTION(S) Referred to the House Committee on Oversight and Government Reform. 1/16/2025 ASSUMING FIRST SPONSORSHIP - Mr. Walkinshaw asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 491, a bill originally introduced by Rep. Connolly, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection. Action By: House of Representatives 09/16/2025 Read twice and referred to the Senate Committee on Homeland Security and Governmental Affairs. 02/18/2025

FEDERAL ANNUITIES H.R. 1522: Federal Retirement Fairness Act / Rep. Emily Randall D-WA06 Cosponsors: 129 (D) 21 (R)

Provides that civilian service in a temporary position after December 31, 1988, may be creditable service under the Federal Employees Retirement System, and for other purposes.

ASSUMING FIRST SPONSORSHIP - Ms. Randall asked unanimous consent that she may hereafter be considered as the first sponsor of H.R. 1522, a bill originally introduced by Representative Connolly, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection. 07/22/2025 Referred to the House Committee on Oversight and Government Reform. 02/24/2025

H.R. 7480 / S. 3823: Federal Adjustment of Income Rates (FAIR) Act(Support) / Rep. James Walkinshaw D-VA-11 / Sen. Brian Schatz D-HI FEDERAL COMPENSATION

Increases the rates of pay under the statutory pay systems and for prevailing rate employees by 4.1 percent in 2027, and for other purposes.

Cosponsors: H.R. 7480 – 27 (D) 1 (R) S. 3823 – 11 (D) 1 (I)

NARFE’s Position:

NARFE MAGAZINE SEPTEMBER 2026

H.R. 7480 – Referred to the House Committee on Oversight and Government Reform. 02/10/2026 S. 3823 – Read twice and referred to the Committee on Homeland Security and Governmental Affairs. 02/10/2026

Support

Oppose

No position

NARFE BILL TRACKER ISSUE

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

LATEST ACTION(S)

H.R. 1: One Big Beautiful The Senate-amended, final version of the bill Bill Act / Rep. Jodey that passed both chambers and was signed Arrington, R-TX-19 into law by the president did not contain any of the objectionable federal workforce provisions NARFE opposed throughout the process. The House-passed version of this budget reconciliation bill, passed pursuant to the instructions of H.Con.Res.14, would (i) eliminate the Federal Employees Retirement System (FERS) annuity supplement as of January 1, 2028, cutting back vested benefits earned based on past service for individuals at or approaching retirement eligibility age; (ii) require new federal employees to choose between retaining merit systems protections or accepting a 5% pay cut via increased contributions toward retirement without any additional benefit; and (iii) institute a fee to appeal adverse actions to the Merit Systems Protection Board (MSPB).

FEDERAL BENEFITS

Senate-amended version (without objectionable federal workforce provisions) passed the Senate on 7/1/25, passed the House on 7/3/25, and was signed into law by the president on 7/4/25.

The original version of the bill would have also (i) increased employee contributions toward retirement by up to 3.6% without any added FERS benefit, and (ii) calculated federal annuities under FERS and the Civil Service Retirement System (CSRS) based on the highest five years of salary rather than the highest three years of salary. Those provisions were eliminated via amendment prior to House floor consideration.

H.Res. 70 / S.Res.147: Rep. Stephen Lynch, D-MA-8 / Sen. Gary Peters, D-MI

POSTAL SERVICE

Cosponsors: H. Res. 70: 209 (D) 21 (R) S. Res. 147: 3 (D) 4 (R)

Expressing the sense that Congress should take all appropriate measures to ensure that the United States Postal Service remains an independent establishment of the federal government and is not subject to privatization.

NARFE’s Position:

Support

Referred to the House Committee on Oversight and Government Reform. 01/28/2025 Referred to the Committee on Homeland Security and Governmental Affairs. 03/27/2025

Oppose

No position

NARFE MAGAZINE www.NARFE.org

NARFE BILL TRACKER ISSUE

BILL NUMBER / NAME / SPONSOR H.R. 2550/S.2837: Protect America’s Workforce Act / Rep. Jared Golden, D-ME02 / Sen. Mark Warner, D-VA

WHAT BILL WOULD DO

H.R. 2550 passed the House of Representatives by a vote of 231-195. 12/11/25. Received in Senate 12/15/25.

Cosponsors: H.R. 2550: 216 (D), 9 (R) S. 2837: 44 (D), 2 (R), 2 (I)

Overturns a recent executive order that targeted certain unions due to opposition to administrative actions via public statements and lawsuits, ending collective bargaining for covered federal employees.

H.R.492/S.134: Saving the Civil Service Act of 2025 / Rep. James Walkinshaw, D-VA-11 / Sen. Tim Kaine, D-VA

Prohibits the establishment of Schedule F of the excepted service, to ensure merit-based hiring and firing of civil servants.

Referred to the House Committee on Oversight and Government Reform. 1/16/2025

Cosponsors: H.R. 492: 101 (D) 4 (R) S. 134: 22 (D) 2 (I)

Read twice and referred to the Committee on Homeland Security and Governmental Affairs. 09/17/25

ASSUMING FIRST SPONSORSHIP - Mr. Walkinshaw asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 492, a bill originally introduced by Representative Connolly, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection. Action By: House of Representatives 09/16/2025 Read twice and referred to the Senate Committee on Homeland Security and Governmental Affairs. 1/16/2025

FEDERAL PERSONNEL POLICY H.R. 5249: Limit on Sweeping Executive Reorganization Act / Rep. James Walkinshaw D-VA-11 Cosponsors: H.R. 5249: 5 (D)

H.R. 4440: Protecting Federal Employee Rights to Personnel Files Act / Rep. Julia Brownley D-CA- 26 Cosponsors: 17(D)

Requires the President and Executive Branch to provide Congress with a Reorganization Impact Report to which Congress must approve before the President may enact major federal employee terminations.

Referred to the House Committee on Oversight and Government Reform. 09/10/2025

Requires agencies to provide official personnel record files to Federal employees and former Federal employees, and for other purposes.

Referred to the House Committee on Oversight and Government Reform. 07/16/2025

NARFE’s Position:

LATEST ACTION(S)

NARFE MAGAZINE SEPTEMBER 2026

Support

Oppose

No position

Make Your

Voice Heard on Capitol Hill

NARFE’s Legislative Action Center is NARFE’s easy way to send letters to your members of Congress, search for your legislators, report your congressional meetings, view voting records and much more. Support the Equal COLA Act Support the Saving the Civil Service Act Protect the Freedoms of America’s Workforce Save the Postal Service, Stop Privatization

narfe.org/advocacy/legislative-action-center/

Questions Questions&&Answers Answers

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.

LUMP SUM ANNUAL LEAVE PAYMENT

I plan to retire at the end of the year. When will I receive my lump sum annual leave, including any possible January 2027 pay adjustment?

Most employees receive their lump-sum payment for unused leave in about two or three pay periods after leaving federal service. However, the Deferred Resignation Program has overwhelmed many payroll offices, delaying this payment. Your payroll provider will process your final lump sum payments once they receive your separation action from your human resources office and final time and attendance record. The payment generally equals what you would have earned had you stayed on the rolls through the period covered by that leave. If part of your leave falls after the January 2027 pay adjustment takes effect, that portion should be paid at the new rate. Some payroll offices may first issue the payment at the old rate and then send a second payment for the difference. The payment is taxable in the year you receive it. For details, see the Office of Personnel Management’s (OPM) fact sheet on lump-sum annual leave payments.

VERA

I am considering applying for early retirement. My agency is offering another Voluntary Early Retirement Authority (VERA) opportunity, and I would like to know what I should consider before accepting this offer.

A 16

Before accepting a VERA offer, compare your projected gross annuity with the net

NARFE MAGAZINE SEPTEMBER 2026

amount you would receive after taxes, insurance premiums, and any survivor benefit reduction. Then, compare the net amount with your net monthly income while working. Consider how much you will need to cover your expenses. Will you need to take substantial distributions from your retirement savings? Does it make sense to retire so that you can begin a second career? Also consider whether other reduction factors, such as part-time service, a former spouse’s courtordered share, or an MRA+10 age reduction, could lower your benefit. Don’t forget that you may have withholdings for both federal and state income tax (depending on the state you will live in retirement) as well as insurance withholdings for health, life, dental, vision, and long-term care insurance that you may continue in retirement. Don’t forget that the Federal Employee Retirement System (FERS) Special Retirement Supplement does not begin until your minimum retirement age and is subject to an earnings limit; and that cost-of-living adjustments do not begin until age 62. If you plan a second career, consider your expected income and whether you will have enough savings to cover the months it can take to process your retirement fully. If, after careful consideration, you decide it is time to leave federal service, we wish you the very best in

retirement and hope you will continue your NARFE membership to stay informed in the years ahead.

RETIREMENT SOCIAL SECURITY

I am a Civil Service Retirement System (CSRS) annuitant and heard there may be a benefit payable to me based on my spouse’s work record. I have very little Social Security covered employment of my own, so I am interested in learning more about this benefit.

Because the Social Security Fairness Act repealed the Government Pension Offset (GPO), a CSRS annuity based on non-Social Security-covered work no longer reduces or eliminates Social Security spouse or survivor benefits that your current or former spouse may have earned for you. If you qualify, a spouse can receive up to one-half of “the worker’s” full retirement age benefit, and a surviving spouse may qualify for a larger benefit on the deceased spouse’s record. The “worker’s” benefit is not reduced because the spouse or former spouse may claim benefits on that record. If you never applied because the GPO would have wiped out the benefit, it may be worth contacting Social Security now. Some claims have been adjusted automatically, but if you have never filed for these benefits, you may still need to apply. Contact Social Security at 1-800-7721213 to inquire or to set up an appointment. Those who have waited to apply may not receive benefits more than six months retroactively.

FEGLI

I elected to continue my Federal Employee Group Life Insurance (FEGLI), including Option B, when I retired. The premiums have gone up, and I no longer wish to continue this coverage. What do I need to do to reduce my coverage? How can I find out the current value of my life insurance? Also, how much will my spouse receive after I pass away? I retired a few years ago and elected a survivor benefit.

You may reduce or cancel FEGLI after retirement, but the change is permanent. Many retirees keep at least some Basic insurance because, with the 75% reduction, premiums stop at age 65 and the remaining 25% of the coverage stays in force for life at no cost. If you choose the 50% reduction or

“no reduction” option at retirement, you keep more coverage but continue paying more. Option A also becomes free after age 65 and gradually reduces to a small lifetime benefit. The easiest way to check the current value of your FEGLI coverage is through OPM Services Online at servicesonline.opm.gov/. There you can view the most current version of Your Federal Retirement Benefits booklet, which shows your life insurance and survivor benefit elections. All records relating to your FEGLI are kept at OPM’s Retirement Operations Center (ROC), and any questions or actions you want to take regarding your FEGLI coverage must be directed to that office. This is true for all retired civilian employees, regardless of which retirement system you have retired from. If you need to contact the ROC in Boyers, PA, the phone number is 1-88-US-OPM-RET (1-888-767-6738). Trivia: The ROC is located

COUNTDOWN TO COLA

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased by 0.53% in June 2026. To calculate the 2026 cost-of-living adjustment (COLA), the 2026 thirdquarter indices will be averaged and compared with the 2025 third-quarter average of 317.265, which is 2.8% greater than the average CPI-W for the third quarter of 2024 of 308.729. As a reminder, the COLA will be 2.8% for Civil Service Retirement System (CSRS) annuities and Social Security benefits and 2% for Federal Employee Retirement System (FERS) annuities. 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

% Toward 2027 COLA

OCTOBER 2025

NO DATA

NOVEMBER 2025

317.414

-0.23

0.05

DECEMBER 2025

317.014

-0.13

0.08

JANUARY 2026

317.942

0.3

0.21

FEBRUARY 2026

319.422

0.47

0.68

MARCH 2026

323.500

1.28

1.97

APRIL 2026

326.541

0.94

2.92

MAY 2026

328.829

0.70

3.64

JUNE 2026

327.075

-0.53

3.09

Because there was no data collected for October 2025 due to a lapse in government funding, the monthly percentage change for November 2025 is calculated based on a two-month change from September 2025. For FECA COLA updates, visit narfe.org and search for FECA.

NARFE MAGAZINE www.NARFE.org

Questions & Answers underground in a converted limestone mine—so it really is a “rock.” Annuitants may also contact OPM by email at retire@opm.gov, or visit opm.gov/healthcare-insurance/life-insurance. To make a change, send OPM a signed letter stating what coverage you want to cancel or keep. Include your CSA claim number or Social Security number, along with a daytime phone number. For more details, see OPM’s FEGLI Handbook and FEGLI in Retirement at opm.gov/ healthcare-insurance/life-insurance/.

FEGLI OPTION C, FAMILY COVERAGE

My spouse has passed away, and I would like to know how to claim the insurance benefit payable to me under FEGLI Option C, Family Coverage?

I am sorry for your loss. To claim FEGLI Option C benefits, use Form FE-6DEP and include a certified copy of the death certificate • If you are an active employee, send everything to your employing office. • If you are retired or are receiving Federal Workers’ Compensation benefits, send everything to OPM, Attn: FE-6 Department After the death of a spouse, you may also need to review the following items: • Review your Federal Employees Health Benefits (FEHB) enrollment. If you had “Self Plus One” or “Self and Family” coverage, you may wish to change to a lower-cost enrollment if there is no longer an eligible family member to cover. • If you elected a survivor benefit for your spouse, you may ask OPM to restore your full annuity. Send a copy of your spouse’s death certificate with your written request to OPM. • Update your federal and state income tax withholding if needed through OPM Services Online. You may also need to change your beneficiary designations for FEGLI and your retirement benefits. • OPM provides additional guidance on what to do after the death of an annuitant at: opm.gov/ retirement-center/my-annuity-and-benefits/ life-events/#url=Survivorbr-Benefits • If you have a Thrift Savings Plan (TSP) account, review your beneficiary designation in My Account at tsp.gov. The TSP pays benefits according to the beneficiary designation on file or, if none is on file, the legal order of precedence. • Reference for TSP: “TSP Death Benefits” booklet, TSP BK 31, tsp.gov/publications/tspbk31.pdf. 18

NARFE MAGAZINE SEPTEMBER 2026

POWER OF ATTORNEY

My father needs assistance with his finances, and I am willing to help. Will I be able to manage his retirement benefits using the Power of attorney (POA) that he provided for me to manage his affairs?

OPM does not accept the power of attorney alone to manage a CSRS or Federal Employees Retirement System (FERS) annuity. Instead, it requires either a court-appointed guardian or conservator, or an OPM-approved representative payee. To request a representative payee arrangement, file OPM Form RI 20-7 and the required supporting documents. If there is already a court appointment, send OPM a certified copy. Once approved, the representative payee must use the annuity only for the annuitant’s benefit, save any money not needed for current expenses, and be prepared to account to OPM for how the funds are used. The payee must also notify OPM promptly if the arrangement ends or if the annuitant dies. opm. gov/retirement-center/my-annuity-and-benefits/ representative-payees/. These rules differ from those that apply to the Thrift Savings Plan and the Federal Employees Dental and Vision Insurance Program (FEDVIP), both of which can recognize a valid power of attorney. • The TSP can recognize a valid power of attorney, but the TSP must review and approve it before the agent can act on the account. Find more information at tsp.gov/planning-for-life-events/ power-of-attorney/. • BENEFEDS can also recognize a valid power of attorney. It distinguishes, however, between permission to discuss an account and authority to make enrollment changes. Find more information at benefeds.gov/learn/info/legal-center. • The Federal Long Term Care Insurance Program (FLTCIP) may also recognize the power of attorney. For more information, visit ltcfeds.gov/ claims-information/powers-of-attorney or call FLTCIP Customer Service at 1-800-582-3337.

MEDICARE ADVANTAGE

The FEHB and Postal Service Health Benefits program (PSHB) premiums seem to increase every year. I want to consider enrollment in a Medicare Advantage plan as I hear they are very inexpensive, with some plans having a $0 premium. What are the pros and cons?

To join a Medicare Advantage plan, you must have Medicare Parts A and B. All FEHB/PSHB plans offer a Medicare Advantage Employer Group Waiver Plan, MA-EGWP (except BC/BS), and they

include a Medicare Advantage Prescription Drug Plan (MA-PDP). These plans require a separate enrollment in the MA-EGWP after you have enrolled in the FEHB/PSHB plan. There is no additional cost to enroll in these plans; however, higher-income annuitants may be subject to an Income-Related Monthly Adjustment Amount (IRMAA) for Part B and Part D of Medicare. These plans offer a $0 deductible, copays, and coinsurance, and provide a $75/month reduction in your Medicare Part B premium, up to the full cost of Part B (depending on the plan). There are additional benefits, such as a gym membership; dental and vision coverage; nonemergency medical transportation; meal delivery following an inpatient stay; and more. Benefits vary by plan. These plans are required to offer at least the benefits of Original Medicare Parts A and B and to include Rx coverage, all in 1 easy-touse plan. Individual Medicare Advantage plans (Part C) are available at www.medicare.gov. Many plans have low or even zero premiums, but you should compare provider networks, drug coverage, cost sharing, and the annual out-of-pocket maximum.

If you enroll in an individual Medicare Advantage plan outside FEHB or PSHB, you may suspend, rather than cancel, your FEHB/PSHB coverage. Use OPM Form RI 79-9 to request a suspension. Compare plans based on total costs and benefits, not premium alone. • OPM FEHB Plan Comparison: opm. gov/healthcare-insurance/healthcare/ plan-information/compare-plans/ • OPM PSHB Plan Comparison: health-benefits. opm.gov/HBEWeb/ehbs/Annon/EnterBasicInfo • The Checkbook Guide to Federal Health Plans at checkbook.org/newhig2/hig.cfm. NARFE Members get a 20% discount when purchasing with the code 20NARFE. • Individual Medicare Advantage plan comparison: medicare.gov/ plan-compare/#/?lang=en&year=2026 To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

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Benefits Brief

Choosing Your Federal Employees Health Benefit (FEHB) Plan

he good news is that FEHB is flexible. In most cases, you can keep your FEHB coverage and continue to cover your eligible family members, whether you or

your spouse enrolls in any or all four parts of Medicare (A, B, C, or D). Unless both spouses are individually eligible for FEHB, the decision about which FEHB plan is best must consider what is best for both spouses and any eligible children. For married couples covered by FEHB, turning 65 does not create a one-sizefits-all answer, and the plan you’ve had for the last 30 years may not be the best choice for the next 30 years. Medicare Part A covers inpatient hospitalization, and it is “free” for most individuals. The hardest Medicare decision for individuals and couples is whether to enroll in Part B, which covers outpatient care, because the monthly premium is $202.90 (2026), and it may be $81.20 to $487/month higher for higherincome retirees. If you decide not to enroll in Medicare Part B, your FEHB plan continues to pay benefits as usual. The decision is not always whether to enroll in Part B, but whether your current health plan is your best option. When Medicare is the primary payer, most FEHB carriers offer at least one plan option that will provide incentives to enroll in Medicare. When choosing an FEHB plan, look for ones that waive cost sharing (deductibles, copayments, and coinsurance) when “original” Medicare, also known as Parts A and B, pays first. Some plans will also provide a partial rebate of Part B premiums of $800/year or more. Unfortunately, FEHB premiums are the same whether Medicare is the primary payer or not, so

NARFE MAGAZINE SEPTEMBER 2026

choosing the most expensive plan is not always the best choice. Medicare Part C is also known as Medicare Advantage. Most FEHB plan carriers also provide an option to enroll in a Medicare Advantage (MA) Employer Group Waiver Plan (EGWP). These plans don’t have any additional premiums, but you must be enrolled in Parts A and B. These plans generally offer extra benefits such as a reduction in the Part B premium, Medicare Prescription Drug coverage (Medicare Part D), a free gym membership, non-emergency transportation to doctor appointments, meal delivery after a hospital stay, and other incentives. Enrollment is individual, so that both spouses covered by the same FEHB plan do not need to enroll in the Medicare Advantage Employer Group Waiver Plan (MA-EGWP). Medicare Part D, Prescription Drug coverage, is also available in most FEHB plans for retirees enrolled in Part A or Part B. For higher-income retirees, Part D is also subject to its own incomerelated monthly adjustment amount (IRMAA) surcharges,

and individuals may voluntarily opt out.

WHEN BOTH SPOUSES ARE OVER 65

When both spouses are over 65, the decision often becomes a costand-usage analysis. In many cases, both spouses enroll in Medicare Parts A and B and pair that with an FEHB option that coordinates generously with Medicare. That approach can lower out-of-pocket expenses and may be especially attractive if either spouse expects frequent doctor visits, outpatient procedures, imaging, or ongoing specialist care. Other couples decide that paying two Part B premiums, especially if IRMAA applies, outweighs the likely savings from better coordination. In those cases, the family should compare the annual premium cost to the out-of-pocket costs they would incur if they kept FEHB alone. A word of caution. According to a paper from the National Library of Medicine, Health Research Service. After reviewing health claims data from 3.5 million BC/BS of Michigan members, it was determined that annual costs for the oldest group (85+) were three times as high as those for the 65–74 age group and twice as high as those for the 75–84 age group. Visit https://pmc.ncbi.nlm.nih.gov/ articles/PMC1361028/ for more information.

HOW TO COMPARE FEHB OPTIONS FOR YOUR FAMILY As you compare FEHB plans, focus on family-level fit rather

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

than Medicare status alone. First, review how each plan coordinates with Medicare: some plans offer stronger wraparound coverage by waiving certain cost-sharing and providing Medicare-related incentives. Second, evaluate the younger spouse’s needs, because that spouse may rely entirely on FEHB for several more years. Third, consider whether either spouse wants the freedom to postpone Part B and revisit the issue later. If a spouse is already retired and declines Part B at 65, that spouse may face a late-enrollment penalty unless a valid Special Enrollment Period applies due to current employment coverage. The flip side is that, even though they will pay a permanent late enrollment penalty, they also saved the Part B premium for the year in which they incurred very little out-of-pocket medical costs. That timing issue makes the initial

decision especially important. Finally, remember that FEHB Open Season gives retirees ongoing flexibility to change plans each year.

IMPORTANT EXCEPTION FOR POSTAL RETIREES

One important exception to the flexibility described above involves the Postal Service Health Benefits (PSHB) Program. Under rules implementing the Postal Service Reform Act, certain Medicare-eligible Postal Service annuitants and their Medicare-eligible family members must enroll in Medicare Part B to remain enrolled in a PSHB plan. —TAMMY FLANAGAN IS A RETIREMENT AND BENEFITS SPECIALIST WITH RETIRE FEDERAL.

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What to Know When FEHB/PSHB

FAMILY

NARFE MAGAZINE SEPTEMBER 2026

COVERAGE ENDS BY TAMMY FLANAGAN

For many federal employees and retirees, family coverage under the Federal Employees Health Benefits (FEHB) and Postal Service Health Benefits (PSHB) programs is one of the most important protections in their benefits packages. Yet FEHB/PSHB family coverage is not permanent simply because someone was once enrolled.

ligibility can change, sometimes abruptly, and when it does, the enrollee is expected to act. A divorce, a child turning 26, or the discovery that a relative never met FEHB/PSHB eligibility rules can all require an update to the enrollment. Ignoring those changes can create more than administrative headaches. It can lead to claim disputes, premium issues, and, as federal oversight officials have warned, broader program-integrity problems and even criminal prosecution. In December 2022, the U.S. Government Accountability Office reported that FEHB/PSHB lacked a strong enough monitoring mechanism to identify and remove already-enrolled ineligible family members, raising concerns about improper payments that could approach approximately $1 billion annually. Against that backdrop, eligibility verification, supporting documentation, and timely enrollment changes have taken on greater importance. The practical question for federal employees and annuitants is straightforward: when family eligibility changes, what happens next? Let’s look at who is no longer eligible for FEHB/PSHB family coverage, how and when to make changes, what forms may be required, and what options may still be available to the person losing coverage. NARFE MAGAZINE www.NARFE.org

Who Is No Longer Eligible Under FEHB/PSHB? The starting point is understanding who FEHB/PSHB is designed to cover. A Self Plus One enrollment covers the enrollee and one designated eligible family member. In comparison, a Self and Family enrollment covers the enrollee and all eligible family members, regardless of whether there is only one eligible family member or several. In some FEHB/PSHB plans, Self and Family enrollment is less expensive than Self Plus One, making it more reasonable to choose the lower-cost option. In general, those eligible family members include a current spouse and children under age 26, including adopted children, stepchildren, and qualifying foster children. A disabled child age 26 or older may remain eligible if the disability existed before age 26 and the child is incapable of selfsupport. The rules are equally important on the other side of the line: a former spouse is no longer eligible once a divorce is final, and a child generally loses eligibility at age 26 unless the disability exception applies. Parents, grandparents, most grandchildren, siblings, in-laws, domestic partners, and other relatives cannot be covered simply because they live with the enrollee or depend on the enrollee financially. In other words, FEHB/PSHB

NARFE MAGAZINE SEPTEMBER 2026

family coverage follows legal eligibility categories, not household need alone. The most common triggers for a change in eligibility are divorce and a child turning 26. A former spouse loses coverage as a family member upon divorce, subject to a 31-day extension. A former spouse is eligible to enroll under Spouse Equity provisions if: • The enrollee and the former spouse were divorced during the enrollee’s employment or receipt of annuity; • They were a covered family member under an FEHB/PSHB enrollment at least one day during the 18 months before the marriage ended (note: this requirement is also met when both the enrollee and the former spouse have FEHB/PSHB enrollments); • They are entitled to a portion of the enrollee’s Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) annuity or to a former spouse survivor annuity; and • They have not remarried before age 55. However, their enrollment under the Spouse Equity provisions may not begin for several months after the divorce, depending on how long it takes to establish eligibility. To avoid a gap in coverage for this period, the former spouse may: • Convert to a non-group contract during the 31-day extension of coverage; or • Continue FEHB/PSHB coverage under the Temporary Continuation of Coverage (TCC) provisions of the FEHB/PSHB law. Some health insurance carriers will mail a “happy birthday” letter to your child before they remove your child as a family member under your plan, unless the disabled-child exception applies. Regardless of whether you are notified, remember that your child’s coverage will continue at no cost

FEHB/PSHB family coverage follows legal eligibility categories, not household need alone. for only 31 days, starting on the date the child turns 26. Your child has the option to enroll in Temporary Continuation of Coverage (TCC) or may obtain assistance from your health plan to enroll under an individual contract. Your child may continue TCC for up to 36 months from the date your child turns 26 years old. When TCC expires, your child will have the opportunity to convert to an individual contract. These transition rights can be critical because they may prevent a gap in insurance while the affected person secures new coverage. Even so, they

are not the same as remaining on the enrollee’s family plan; they are separate options that must be pursued through the correct process. A former spouse cannot remain on the employee’s or retiree’s family enrollment after divorce, even if a court order suggests otherwise, and a child who turns 26 generally cannot stay on the parent’s FEHB/PSHB enrollment unless the disabled-child exception applies. In both cases, the practical next step is to explore continuation or replacement coverage rather than assume prior dependence or prior enrollment will preserve eligibility. Another issue arises when a person is mistakenly believed to qualify, such as a grandchild who does not meet foster-child requirements or a partner who is not a legal spouse. In every case, the principle is the same: FEHB/PSHB family coverage follows statutory eligibility, not household need or financial dependency alone.

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Why It Is Important to Update Coverage Promptly

The Office of Personnel Management (OPM) guidance makes it clear that enrollees should notify their employing office when a family member becomes ineligible, and that many actions tied to qualifying life events must be taken within 60 days of the event. Miss that window, and the available options may narrow. Move quickly, and the enrollee is more likely to make the correct change with the correct effective date. Prompt action also reduces the risk that claims will be paid to someone who should no longer be covered. The larger point is that FEHB/PSHB is not a passive benefit. It works best when employees and retirees take the time to review this benefit whenever a major life change occurs.

How to Make Changes When a Family Member Becomes Ineligible When a family member is no longer eligible, the first move is practical: contacting the employing office if you are an active employee, or the appropriate retirement system if you are an annuitant. That conversation serves two purposes. It reports the loss of eligibility, and it helps determine whether the enrollment itself should change. An employee who carries Self and Family because of a spouse and children, for example, may be able to move to Self Plus One or Self Only coverage after a divorce or a child’s loss of eligibility. In some cases, the family member who loses coverage may have a separate opportunity to continue FEHB/PSHB

NARFE MAGAZINE SEPTEMBER 2026

temporarily or obtain other transitional coverage, but those rights do not activate automatically. That is why early communication matters: it allows the agency or retirement administrator to explain the election options, deadlines, and effective dates before a minor delay becomes a larger problem.

Forms and Documentation Commonly Needed The paperwork usually begins with Standard Form 2809, the Health Benefits Election Form. OPM states that SF 2809 is used to enroll, change enrollment, switch a designated family member, cancel an enrollment, or suspend coverage when suspension is allowed. Certain annuitants under CSRS or FERS may instead use OPM Form 2809. The form itself, however, is only part of the process. Depending on the event, an enrollee may also need to provide a divorce decree, proof of a child’s age, foster-child documentation, a disability certification for a child over age 26, or other records as requested. Increasingly, those documents are not treated as routine attachments but as part of a broader verification effort designed to ensure that only eligible family members remain on FEHB/ PSHB coverage. That verification effort has been building for several years. In its December 2022 report “Federal Employees Health Benefits Program: Additional Monitoring Mechanisms and Fraud Risk Assessment Needed to Better Ensure Member Eligibility,” the U.S. Government Accountability Office (GAO) found that OPM had begun requiring proof of eligibility in some situations but still lacked a monitoring mechanism to identify and remove family members who were already enrolled but ineligible. GAO warned that without stronger

Eligibility Family Member Requirements for Federal Employees Dental and Vision Insurance Program (FEDVIP), Federal Employees Long Term Care Insurance Program (FLTCIP), and Federal Employees Group Life Insurance (FEGLI) Program: FEDVIP: Current spouse, unmarried dependent child(ren) under age 22 (including an adopted child, stepchild, foster child, and recognized natural child), and child(ren) age 22 or over who are incapable of selfsupport because of a mental or physical disability that existed before age 22. For TRICARE Eligible Individuals (TEI), the dependent child(ren) must be under age 21 or 23, if a full-time student. FLTCIP: Current spouse of eligible employees and retirees; former spouses are not eligible, even if receiving an apportionment of annuity; domestic partners (either same-sex or opposite-sex) of eligible employees and retirees (you must submit a Declaration of Domestic Partnership form to the employee’s or retiree’s agency, annuity office, or branch of service before you apply); adult children (18 years or older) of

living eligible employees and retirees; this includes adopted and stepchildren. Children of domestic partners are considered stepchildren; parents, parents-in-law, and stepparents of living eligible employees are eligible; parents of retirees are not eligible. FEGLI (Option C / Family Coverage): Current spouse and eligible dependent children. Eligible dependent children must be unmarried and under age 22, or if age 22 or over, incapable of self-support because of a mental or physical disability that existed before the child reached age 22. Eligible dependent children include your natural children, adopted children, stepchildren (if they live with you in a regular parent-child relationship), recognized natural children, and foster children (if they live with you in a regular parent-child relationship, including foster children). Stillborn children are not covered.

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oversight, improper payments could continue to mount and cited OPM’s estimate that those costs could reach approximately $1 billion per year. GAO also concluded that OPM’s fraud risk assessment did not fully account for the risks posed by ineligible FEHB members (Note: PSHB didn’t exist in 2022). OPM’s fiscal year 2020 fraud risk profile identified three inherent fraud risks facing the FEHB program, all of which relate to provider fraud. The specific risks identified are: • Providers billing for tests or services not covered or not performed; • Providers overbilling for services performed; and • Providers falsifying a patient’s diagnosis. Based on this fraud risk assessment and profile, OPM determined that the FEHB program’s overall fraud risk was low. OPM’s Office of Inspector General has noted that identifying ineligible family members is often difficult and that fraud, waste, and abuse can occur over years before being discovered. Those concerns helped shape later reforms, including OPM’s final rule published in the Federal Register, Volume 91, Issue 105 (June 2, 2026). Effective July 2, 2026, the rule implements the FEHB Protection Act of 2025 and requires verification of both the family member’s eligibility and of the qualifying life event used to add that person to FEHB or PSHB coverage, including during Open Season. These regulations apply to both the FEHB and PSHB programs. Taken together, the GAO report and the 2026 final rule send the same message: FEHB/PSHB eligibility is no longer viewed as a one-time enrollment issue, but as an area requiring ongoing documentation, monitoring, and stronger internal controls. 28

NARFE MAGAZINE SEPTEMBER 2026

For comparison, the GAO review found that 25 states have conducted or announced plans to conduct a dependent eligibility verification audit for their respective state health insurance programs. In 2015, the California Public Employees’ Retirement System conducted an audit. The system requires all employees to reverify dependents every 3 years based on the dependent’s birth month. After its audit, the California retirement system removed 2.6% of dependents because of ineligibility and estimated it saved nearly $122 million. Several examples of fraud involving ineligible FEHB members were outlined in the GAO report. One such incident occurred when an FEHB program enrollee submitted altered official court documents when removing an ex-spouse and adding a new spouse to the enrollee’s FEHB insurance plan. The altered document indicated that the enrollee divorced their ex-spouse in January 2017, when in fact they divorced in April 1993. The FEHB program paid more than $150,000 in claims on behalf of the ex-spouse over the 14 years of ineligible coverage. In June 2019, the enrollee pleaded guilty to making false statements.

Qualifying Life Events and the 60-Day Rule Outside of the annual Open Season, FEHB/ PSHB changes are generally permitted only when a qualifying life event occurs. OPM identifies several family-status QLEs, including marriage, birth or adoption of a child, acquisition of a foster child, legal separation, divorce, and the death of a spouse or dependent. Other QLEs involve changes in employment status or the loss of other health coverage. If you want to make a change tied to a QLE, generally you must do so within 60 days of the event. That rule is especially important when a family member becomes ineligible. Divorce, the death of a dependent, and the loss of other health coverage can all create new election opportunities. Depending on who remains eligible after the event, an enrollee may be able to move from Self and Family to Self Plus One or Self Only. The basic principle is simple: the life event opens the door, but the enrollee must still act by the deadline. A few examples show how the rules work in practice. After a divorce, an employee with no

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.

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RESOURCES: • SF 2809 Health Benefits Election Form opm. gov/forms/pdf_fill/sf2809.pdf • OPM Form 2809 Health Benefits Election Form to be used by annuitants retired under the CSRS or FERS, survivor annuitants under CSRS or FERS, former spouses, children, and former spouses who are eligible for temporary continuation of coverage; and an OPM-appointed representative payee or court-appointed guardian of the eligible member opm.gov/forms/pdf_fill/opm2809.pdf • GAO-23-105222, Dec 09, 2022, Federal Employees Health Benefits Program: Additional Monitoring Mechanisms and Fraud Risk Assessment Needed to Better Ensure Member Eligibility gao.gov/products/gao-23-105222 • 91 FR 32875 - Federal Employees Health Benefits Program: Verification Requirements for Family Member Coverage govinfo.gov/app/ details/FR-2026-06-02/2026-11022 • FEHB Family Members Fact Sheet: opm.gov/ healthcare-insurance/healthcare/eligibility/faqseligibility-fact-sheet.pdf • Eligibility Fact Sheet: Spouse and Common Law Marriage opm.gov/healthcare-insurance/ healthcare/eligibility/spouse-and-common-lawspouse-fact-sheet.pdf • Eligibility Fact Sheet: Child Under Age 26 opm.gov/healthcare-insurance/healthcare/eligibility/ child-under-age-26-eligibility-fact-sheet.pdf • Eligibility Fact Sheet: Child Incapable of Self Support opm.gov/ healthcare-insurance/healthcare/ eligibility/child-incapable-ofself-support-eligibilityfact-sheet.pdf

remaining eligible dependents may be able to move to Self Only; if one eligible child remains, Self Plus One may be the better fit. Likewise, if a child ages out and no other eligible family members remain, the parent may be able to reduce the enrollment to Self Only. The choice depends on who is still eligible after the event and whether the enrollee acts within the allowed time.

Practical Checklist for Employees and Retirees For employees and retirees, the most useful response is often the simplest: act methodically and quickly. • Start by identifying exactly why the person is no longer eligible, whether because of divorce, age 26, or a determination that the relative never qualified under FEHB/PSHB rules. • Then contact the employing office or retirement system and ask what enrollment changes, if any, should be filed. ◦ Complete the correct form and gather any supporting records such as a divorce decree, proof of age, foster child approval, or disability certification. ◦ Just as important, ask whether the person losing eligibility may receive a 31-day extension, a TCC notice, or other continuation of information. • Finally, confirm the effective date of the new enrollment, so you know whether your coverage will remain in Self and Family, shift to Self Plus One, or move to Self Only. A careful, timely approach can prevent confusion over premiums, claims, and future coverage rights.

Conclusion FEHB/PSHB family coverage works best when the enrollment stays aligned with the law. When eligibility changes, whether because of divorce, a child aging out, or another change in family status, the enrollee needs to act quickly, use the correct form, and provide the documentation required. The policy shift reflected in the December 2022 GAO report and the 2026 Federal Register rule makes that responsibility even clearer: keeping coverage current is not just sound benefits administration, but part of protecting the integrity of the program itself. —TAMMY FLANAGAN IS A FEDERAL RETIREMENT EXPERT WITH RETIRE FEDERAL

NARFE MAGAZINE SEPTEMBER 2026

Don’t Miss NARFE’s Fall Webinars For NARFE’s Open Season webinar lineup, see pg. 11 WEDNESDAY, SEPTEMBER 2, 2 P.M. ET Fall Membership Drive: Membership Recruitment, Engagement, and Retention for Chapter Leaders with NARFE Staff ACTIVE FEDS RETIREMENT SERIES THURSDAY, SEPTEMBER 3, 2 P.M. ET Active Feds: Should I Stay or Should I Go? with Tony Opat

THURSDAY, SEPTEMBER 24, 2 P.M. ET Protection (Insurance) Planning with Wes Battle THURSDAY, OCTOBER 1, 2 P.M. ET Office Hours for Officers: Connecting Members with Federal Benefits/Open Season Resources with NARFE Staff

THURSDAY, SEPTEMBER 10, 2 P.M. ET Preparing for Retirement with Tony Opat

THURSDAY, OCTOBER 8, 2 P.M. ET Federal Benefits with Children (Covering Paid Parental Leave, Health and Death Benefits) with Michele Bollier

THURSDAY, SEPTEMBER 17, 2 P.M. ET The Retirement Process with Tony Opat

THURSDAY, OCTOBER 15, 2 P.M. ET Advanced Investment Strategies with Wes Battle

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

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Wes Battle Federal benefits and retirement expert

Tony Opat Federal benefits and retirement specialist

Michele Bollier Federal benefits and retirement expert

NARFE FEDERAL BENEFITS INSTITUTE

Planning a Fulfilling Retirement BY EVERETT A. CHASEN

Many NARFE members are newly retired, or plan to leave federal service soon. They’ve had enough of working for a living and are ready for the next chapter in their lives. All the pages are blank. How will they fill them without getting bored?

NARFE MAGAZINE SEPTMEBER SEPTEMBER 2026

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ccording to Dave Edwards, a retiree who is now a consultant on productivity, leadership, and management issues (www. DaveEdwardsMedia.com), the key is to remain productive, but in a different way than when you were working. For retirees, productivity ensures the time you have is spent on the things that matter most to you. “I view productivity in a very simple way,” he said. “It’s getting things done that are important to you in such a way that you know those things have the right kind of value in your life. They don’t have to be all-consuming, but it feels good when you get stuff done.” For retirees, being productive is different than if you work in a nine to five job. “There, you have a boss who’s giving you tasks and they have to be done by Wednesday,” Edwards added. “But when you’re retired, what is Wednesday? And whether you do something on Wednesday or Friday doesn’t make a whole lot of difference.” The problem is that some people lose track of time and don’t meet deadlines and find themselves being unproductive. “They don’t do anything,” he said. “They get up in the morning. They watch TV or they’re on their phone. It’s about finding a balance.” Finding a balance between chores, projects, hobbies, social time, travel, and even afternoon naps is different for everyone. While some retirees are content to accomplish only a small amount in a day, others are very active. They volunteer at organizations, have hobbies or side jobs, exercise

NARFE MAGAZINE SEPTEMBER 2026

and travel regularly, or do all of those things at different times. “It’s a matter of finding your own happiness,” said Edwards.

Structuring Your Days However much or little you want to accomplish when you retire, you need to build a structure for your days, weeks, even seasons of the year. Jobs provide schedules, tasks, and accountabilities, but retirement removes that built-in structure. For some people, that creates a sudden void.

“The problem is that some people lose track of time and don’t meet deadlines and find themselves being unproductive. They don’t do anything: they get up in the morning, they watch TV, or they’re on their phone. It’s about finding a balance.” –Dave Edwards, retiree and consultant

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“Think about what you’re going to do in the course of the day … Treat your calendar like a retirement road map, and ask yourself when you want your day to start and finish and what activities will bring rhythm and variety to your schedule.” –Dave Edwards, retiree and consultant

“You want to have some kind of structure so you don’t drift into doing things that aren’t going to give you great satisfaction,” said Edwards. Beginning to create a structure involves creating bookends. Have a consistent wake-up and bedtime schedule. “That might be 8:30 in the morning, or six a.m.,” he noted. “Then adjust your sleep time accordingly.” Next, find “anchors” for your days. “Think about what you’re going to do in the course of the day,” said Edwards. “You’re going to eat, right? You might have hobbies or social activities that are important to you. Treat your calendar like a retirement road map, and ask yourself when you want your day to start and finish and what activities will bring rhythm and variety to your schedule.” Consider changing your focus every quarter, especially if you live somewhere the seasons change significantly. Winter can be a time for learning and reading. Spring is a good time for gardening and household repairs. Plan travel and other outdoor activities in summer, and fall can be perfect for planning, reflection and family events. Think about what is important to you in each quarter, and then build out your weeks and months accordingly. Don’t overschedule yourself, though. “Retirement shouldn’t feel like another job,” Edwards warned. 36

NARFE MAGAZINE SEPTEMBER 2026

The value of exercise It’s important, Edwards believes, to make exercise a priority. “That’s how you stay healthy,” he said. “You have to have that built into part of your life. If you don’t move, if you don’t get any exercise, medical research tells us that will accelerate aging and declining health. You might choose walking, cycling, gardening, yoga or whatever you want to do—and it doesn’t have to be super strenuous.” Edwards and his wife like to walk together. “We’re out there walking, not only because it gets our heart rate up, but it also gets us outside in the fresh air,” he added. They also own a treadmill because it can get quite icy during Wisconsin winters. Karen Scheer, a retired teacher, takes walking a step further. “In my 20s,” she says, “I lived in Atlanta. To escape the heat of the city, I would camp out in the mountains of North Georgia and hike part of the Appalachian Trail.” Later, she and her family took many vacations that included hiking together. Today, Scheer still enjoys hiking because “I like to be outdoors. I don’t think of hiking as a physical

activity like running. To me, it’s just being out with nature and having a start and a finish to the activity.” Scheer prefers short hikes to longer ones. “Sometimes, I hike by myself, but I try to hike in groups because I’m older now, and if I fall or something, I’d rather be in a group,” she adds. “If something goes wrong, there’s other people around, and if there’s a medical emergency, the leader can take care of it.” Scheer recently hiked around places like Joshua Tree, California; Mexico; and Harper’s Ferry, West Virginia. She finds new hikes on the Trip Advisor website and with the Road Scholars organization (www.roadscholar.org). Other organizers of senior hikes include ElderTreks, Overseas Adventure Travel, Gate 1 Travel, Walking the World, and Adventures in Good Company (for women over 60). There are other ways to get regular exercise: joining a gym, for example, or purchasing fitness equipment to use at home. Many federal retirees have health plans that allow them to join local gyms or take part in at-home classes for free. These offer safe and fun ways to work out and maintain the flexibility, mobility, strength, balance, and cardiovascular health seniors need to get and stay active.

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“I volunteer to do things I really enjoy doing,” –Dave Edwards, retiree and consultant

Structure In Practice

Traveling and Volunteering

Edwards described how his own days are structured. “Two of our grandchildren live very close to us, so we wake up early because their mom drops them off at our house, and we get them fed and ready for school,” he said. “I take them to school in the morning and pick them up in the afternoon.” Edwards also has a consulting practice where he works with people on productivity, leadership, and management issues. “So, I’m doing Zoom calls with them,” he said. “I’m writing and producing videos for YouTube, and volunteering at my granddaughters’ school and at our church pantry. Also, I teach part-time for a local university.” Every one of those things is something Edwards chooses to do, and finds great joy in doing. “I still have time to read and go for walks with my wife,” he added. “I also feel I’ve got to do all of this while I have my health. No one is guaranteed tomorrow, and no one is guaranteed good health. So, while I’m blessed with the ability to enjoy all those things, I want to get the most out of life. If I try something and it doesn’t meet my needs, or I don’t feel I’m being terribly helpful, I don’t want to do it.”

There are, of course, other activities important to retirees that don’t fit neatly into an everyday schedule. One of those is travel. Travel doesn’t have to mean buying a plane ticket and traveling to Europe. It can be as simple as hopping a train for a short distance, or getting in the car and going for a ride. “You don’t even have to pack a bag,” said Edwards. “Just head in a direction, and you’ll be surprised at what you see. Don’t stop at a fast food restaurant for lunch. Instead, stop at a mom-and-pop place. That’s so much fun! We live just outside of Milwaukee, and in the same distance that it would take us to get to the city, we can be out in farm fields and communities.” On the other hand, Edwards recently decided to go down to the lakefront along Lake Michigan, and they ended up in downtown Milwaukee. “We went to the Art Center, and had lunch in a public market. We hadn’t done that in a long time, and it was just great!” Many federal retirees find volunteer work to be a fulfilling use of their time. Some volunteer for the agencies they worked for before retirement; others look for opportunities to develop new skills.

NARFE MAGAZINE SEPTEMBER 2026

“I volunteer to do things I really enjoy doing,” said Edwards. “There have been things people suggested I could try as a volunteer, and they just don’t sound interesting, or they sound too much like the work I used to do before I retired. I help out at my granddaughter’s school. She’s in first grade and I help her and her classmates with their reading. And I get such joy out of it, not only because I get to work with my granddaughter, but all the other kids are so cute and cool and funny.” Edwards also help out at his church’s food pantry. “I’m hoping the person on the other side is benefiting from my help—but sometimes I think I benefit more than they do!”

Finding a Hobby

Hobbies are another option for retirees looking for anchors for their days and weeks. Edwards is a gardener. “In winter, I do the bulk of my writing and consulting, and that’s when I teach,” he said. “Once spring and summer come, I’m much more focused on external things. I’m outside a lot more. I love to garden. That’s part of the seasonality of what I like to do.” Music is another popular hobby for many retirees—some of whom never played an instrument before their retirement. Recent retiree Peter Johnson played the piano as a child and continued to play for his own enjoyment throughout his working life. His dad, an amateur musician, owned an accordion, and Johnson played that instrument “only a few times” before he retired. Shortly after he retired, he had an opportunity to play the piano for a Christmas party sing-along with his fellow retirees. On a lark, he took his dad’s accordion to the party and used it for just one song. Also entertaining at the party was a group from a local community-based orchestra that included the accordion in its instrumentation. “When they heard me play, they encouraged me to join the group,” said Johnson. “I was shocked. But I got up my nerve, went to a rehearsal, bought a new accordion, and the rest is history.” Now, Johnson is president of a local accordion society, and performs solo and with singers and small ensembles at parties and celebrations. He’s written several original compositions, three of which have won awards, and can play hundreds of songs by ear. “It’s good for the brain and the soul, and a great way to meet people,” he said. “It feels good to be able to grow in an area that is meaningful

to you. Music brings people together, and it’s very satisfying to know I can do that even at my intermediate level of playing. You just have to be good enough to know that people can appreciate what you’re doing and get pleasure from it.”

Pay Attention to Your Finances Finally, you have to consider your financial situation. “I think sometimes people don’t give that as much serious thought as they should,” said Edwards. “About 10 years before I was going to retire, I started meeting regularly with a financial planner, so I could be sure I was going to be financially okay when I retired,” he added. “I’m fortunate I have a pension, and that was part of the equation. But I also had a good financial plan going into my retirement years, and I made sure I had good health insurance. Those are the most important things you need.” Also, homeowners should check on their home insurance to ensure that their home is protected like the important financial asset it is—and if they downsize to a condominium, they should make sure their new insurance is well-integrated with the insurance carried by their condo association.

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“In retirement, I kind of changed that approach. How do I feel relevant now? By doing things, helping, learning, and staying active.” –Dave Edwards, retiree and consultant

“If you don’t have financial security, none of the rest of this matters,” Edwards explained.

Closing Thoughts

The most important question a new retiree or someone who plans to retire soon should ask themselves, Edwards said, is this: how do I want to spend my time, and what will bring me fulfillment? “My wife retired shortly before I did, She said to me, you’re going to have to deal with the feeling you’re no longer relevant. I think when we’re in the workday world, we define relevance by the services we provide to our employer and the way we’re viewed by our employer and our peers.” “In retirement, I kind of changed that approach. How do I feel relevant now? By doing things, helping, learning, and staying active.” “I’m not an expert on this subject,” he concluded modestly. “I’m just living it. I’m modifying my outlook on life every day!” —EVERETT A. CHASEN IS A FREELANCE REPORTER BASED IN THE GREATER WASHINGTON, D.C. AREA. 40

NARFE MAGAZINE SEPTEMBER 2026

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 Thrift Savings Plan, 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! 1Q6

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Managing Money

Health Savings Accounts: Unlocking Their Full Potential

hen federal employees think about tax-advantaged retirement savings, the Thrift Savings Plan (TSP) and individual retirement accounts (IRAs) naturally

come to mind. Although Health Savings Accounts, or HSAs, were designed as medical savings accounts, they can also serve as an effective supplementary retirement savings tool. To contribute to an HSA, you must generally be covered by an HSA-eligible high-deductible health plan (HDHP) and have no disqualifying coverage. For 2026, eligible individuals may contribute up to $4,400 with selfonly HDHP coverage or $8,750 with family HDHP coverage. Those aged 55 or older may contribute an additional $1,000 catch-up contribution. Eligibility is based on health insurance coverage, not employment status, so you can contribute to an HSA even after retiring. However, contributions must stop once Medicare enrollment begins. Those who delay Medicare past age 65 should also be aware that, when they do enroll, Part A coverage can be applied retroactively for up to 6 months, which may require stopping contributions before the enrollment date. While retirement accounts, like the TSP and IRAs, offer valuable tax benefits, HSAs can be even better. Unlike retirement accounts, which are taxed either on the front end or the back end, HSAs offer a triple tax advantage: pre-tax contributions, tax-free earnings, and taxfree withdrawals for qualified medical expenses. Many HSA holders use an HSA as a current medical 42

NARFE MAGAZINE SEPTEMBER 2026

spending account, contributing to the account and then using the funds each year to pay doctor bills, prescriptions, and other qualified healthcare expenses as they arise. For households with tight cash flow or significant medical expenses, that may be the right approach. But the true potential of an HSA lies in leaving funds invested to maximize tax-free growth. There are two strategies for doing this. The first is simply to invest the HSA and reserve it for future medical expenses rather than spending it down each year. Healthcare expenses often increase with age, and tax-free withdrawals later can pay off when those expenses are more likely to arise—often at a time when retirees are living on a fixed income. For example, it’s not uncommon for federal retirees to need expensive dental procedure—often not covered by FEHB or Medicare—during their retirement. A retiree facing a $20,000 dental procedure could cover the cost entirely with tax-free HSA funds rather than a taxable distribution from a retirement account. Furthermore, HSA funds may also be used tax-free to pay Medicare premiums, as well as qualified long-term care

insurance premiums up to IRS age-based limits. However, regular FEHB premiums cannot be paid tax-free from an HSA. Another feature many HSA participants don’t know about is the ability to reimburse themselves for previously paid healthcare expenses with a tax-free distribution. There’s no time restriction for when the reimbursement must be made, opening the door to a delayed reimbursement strategy. This strategy still involves paying current medical expenses out of pocket, but instead of reserving the HSA for future medical expenses, participants can reimburse themselves for prior qualified expenses—even those incurred years before—with a taxfree distribution. Delaying reimbursement in this way can free up cash whenever it’s needed, for any purpose. To use this strategy properly, the prior medical expense must be qualified, incurred after the HSA was established, and not previously reimbursed or deducted. HSA participants should keep detailed records, including receipts, invoices, explanations of benefits, and proof of payment. Delaying reimbursement can provide retirees who need extra cash with a tax-free alternative to taxable distributions from the TSP or other retirement accounts. Furthermore, qualified HSA distributions do not increase adjusted gross income, which is critical for managing incomesensitive thresholds, such as

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

the income-related monthly adjustment amount (IRMAA) that can raise Medicare premiums. Investing in an HSA rather than using it to pay current medical expenses isn’t right for everyone. While investing HSA funds can increase the account’s long-term value, it also introduces market risk that some may not be comfortable with. Furthermore, using an HSA to reimburse for prior medical expenses requires meticulous recordkeeping over many years, possibly decades. It’s also worth noting that after age 65, HSA funds can be withdrawn for any purpose without penalty. Taxes are owed on non-qualified distributions, but there is no additional penalty— effectively making the HSA function like a traditional IRA at that point.

When coordinating withdrawals from retirement accounts and savings, having an HSA as a source of tax-free funds for medical expenses—funded with pre-tax dollars—can offer flexibility that’s hard to match. 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 THE STRATEGIC FINANCIAL ALLIANCE, INC. MARK KEEN IS A REGISTERED PRINCIPAL OF SFA AND AN INVESTMENT ADVISOR REPRESENTATIVE OF SFA AND STRATEGIC BLUEPRINT, LLC. SFA AND STRATEGIC BLUEPRINT ARE AFFILIATED THROUGH COMMON OWNERSHIP BUT OTHERWISE UNAFFILIATED WITH KEEN & POCOCK. NEITHER STRATEGIC BLUEPRINT NOR SFA PROVIDE TAX OR LEGAL ADVICE.

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NARFE News

Join NARFE’s Fall Membership Drive

id you know that NARFE rewards its members for recruiting new members? Think of it as a special “thank you” from our staff for building our membership and voices.

This year the dates have changed! The drive began on August 1, and the program runs through November 30, 2026. Current members can earn $10 for each new member they recruit and other prizes. This is a critical time of year when we truly need all NARFE members to step up and help us grow by reaching out to potential new members. Please use email, your websites, and social media to encourage your fellow members to participate and promote the benefits of NARFE membership. And be sure to provide prospects with your NARFE member ID number so you get credit when the new members join. To assist you in your recruiting efforts, we have a wide range of resources you can use to introduce active and retired federal employees to NARFE. To access them, log in at narfe.org and click on “For Members” on the menu bar and select “Officer Resources” on the dropdown menu. On the Officer Resources page, scroll down and click on “Membership Officer Resources” to access a page with many helpful tools, including:

NARFE MAGAZINE SEPTEMBER 2026

• A recruitment email template that incorporates a testimonial • The NARFE membership brochure, with powerful

THANK YOU FOR YOUR COMMITMENT AND SUPPORT. TOGETHER WE CAN HELP NARFE GROW! talking points • An “elevator speech” to help you quickly and effectively explain the benefits of NARFE membership • The “About NARFE” video if you have an opportunity to make a short introduction to NARFE and want the impact of professional, polished media • A membership presentation script that covers NARFE’s advocacy efforts and all our key member benefits • PowerPoint slides provide visuals that sync up with the script and show all the ways NARFE helps members

get more out of their federal benefits Plus, check out NARFE’s membership marketing campaign ads and use these new ads and videos to recruit on your Facebook, Instagram or Nextdoor accounts or whatever new social platform you are using. To view these resources visit “Member Quick Links” – “Membership Marketing Materials” – “Member marketing asset” from Street Level Studio”. You can also find our new “Celebrate NARFE’s Top Recruiters” page and keep up with NARFE’s recruiters all across the country! If you need printed supplies to support your efforts (membership brochures, applications, copies of NARFE Magazine, etc.), you’ll find a link to the F-18 Requisition for Printed Supplies interactive online order form on the “Officer Resources” page which you can use to place your order. If you have questions, please email our membership development team at membership@narfe.org or call us at 800-456-8410 ext 1. Thank you for your commitment and support. Together, we can help NARFE grow! —BY NORA MACDONALD, SENIOR DIRECTOR, MEMBER ENGAGEMENT

NARFE Chapter Members Are Active Across the Country

SAN DIEGO COUNTY TAX ASSESSOR VISITS NARFE CHAPTER

FOURTH OF JULY NARFE BOOTH

The San Diego County Treasurer-Tax Collector’s Office announced they enjoyed East County/El Cajon Valley Chapter 669 of NARFE. Huge thank‑you to Chapter President Barb Leetch and all the members for the warm welcome. “It was truly inspiring to hear what matters most to you and to spend the morning in such great company,” they said.

The NARFE booth at the Chapter 1494 Tri-City Fremont CA, Fourth of July Parade After Party attracted great interest, including Mayor Raj Salwan. Great job, Chapter 1494!

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NARFE News

REP. NEGUSE VISITS COLORADO NARFE CHAPTERS

Members from NARFE Chapter 821 of Loveland, Colo. joined Chapter 256 in Fort Collins for their June 15 meeting as they had the honor of hosting their Colorado Congressional District 2 Rep. Joe Neguse and his staff. Neguse kicked off the meeting with an overview of current issues and his work with other House members in Washington, D.C. This was one of several meetings, including a town hall, that Neguse attended that day. His responses to their questions and concerns were straightforward and honest. Members reported that his words were encouraging and his optimism in his and other House members’ efforts to fight for democracy was contagious. He assured members that his door is always open and encouraged members to call or stop by his Fort Collins office if we have any questions or want to discuss or

provide new ideas in relation to current issues or concerns. NARFE Chapters 256 and 821 are grateful for the time Neguse and his staff took to spend with NARFE!

FEDERATION CONFERENCES AND MEETINGS OHIO FEDERATION ANNUAL MEETING: September 12, virtual. For information email Tim Gartner narfetim48@gmail.com or Mary Seal seal0210@yahoo.com or visit narfe.org/Oh. CALIFORNIA GENERAL MEETING: September 15. More information to come. IOWA FEDERATION CONFERENCE: September 22-23, Meskwaki Hotel and Convention Center, 1504 305th St, Tama IA 52339, Contact: Harry Healey Irish13155@yahoo.com REGION IX SYMPOSIUM: ALASKA, IDAHO, MONTANA, OREGON, AND WASHINGTON: Oct. 1-3, Ellensburg, WA For more information go to narfe.org/region09/ WASHINGTON FEDERATION CONFERENCE: October 1. Ellensburg, WA. More information to come. CONNECTICUT FEDERATION CONFERENCE: October 14, Wallingford, CT. More information to come. HAWAII FEDERATION CONFERENCE: October 14, Honolulu, HI. More information to come. 71ST ILLINOIS FEDERATION ANNUAL MEETING AND CONFERENCE: October 21 from 9:00 to 11:00 a.m. and 1:00 to 3:00 p,m. Hear from National Secretary/Treasurer, national staff, regional vice president, a panel of FEHB providers and more. For more information to narfe.org/il/ INDIANA FEDERATION ANNUAL MEETING: October 29, 2026. NALC Branch#39 Union Hall 2211 E. 54th Street Indianapolis, IN 46220. Time 10am to 5pm. Contact John Triplett johntriplettnarfe@gmail.com for more information.

NARFE MAGAZINE SEPTEMBER 2026

MOVING FORWARD WITH PROVEN LEADERSHIP

KEY INITIATIVES ADVOCACY

NON-DUES REVENUE INCREASE

• Remain Steadfast in advocacy efforts. • Protect benefits of federal employees and retirees • Ensure that our voices are heard. • Safeguard interests at every level.

• Explore and Implement innovative strategies. • Enhance support provided to members. • Expand member engagement services and perks.

MEMBERSHIP GROWTH

PROMOTE FISCAL RESPONSIBILITY

• Strengthens our collective voice. • Ensures NARFE continues as a valuable resource. • Addressing members’ evolving needs.

• Support long-term sustainability of NARFE. • Maintain strong focus on fiscal responsibility. • Ensure resources are managed effectively and transparently.

“Secure Our Future - MOve NArFe FOrwArd with PurPOSe, deterMiNAtiON, ANd uNity”

NARFE News

2 NARFE Magazine Writers Win APEX Awards

ARFE is honored to learn that two NARFE Magazine feature stories were honored in the 38th Annual Awards for Publication Excellence: A Competition for Communications Professionals. David Tobenkin received an Award of Excellence in the category Writing: Current Events & Trending Topics Domestic Policy & Issues, for his feature story “Preparing for a Revived Schedule F: Replacing Angst With Action” in the March 2025 NARFE Magazine cover story.

In October 2025, NARFE Magazine received the 2025 Eddie Award for the same March 2025 issue for Best Full Issue in the Association/Nonprofit – Professional/Membership Association – Business, Leadership & Public Affairs category at an awards ceremony Monday, October 6, in New York. The second APEX Award of Excellence this year went to writer Herb Casey in the category of Writing: Current Events & Trending Topics Economic Issues, for his feature story “Retiring Abroad,” that appeared in the December 2025 NARFE Magazine.

NARFE Oregon Federation Turns Out at Portland Women’s Leadership Lunch

delegation of five members from the Oregon Federation for NARFE attended a Women’s Leadership Lunch in Portland on June 1, hosted by Rep. Suzanne Bonamici, D-OR. While the program featured Rep. Bonamici and Rep. Jahana Hayes, D-CT, we were also treated to an appearance by nearly the entire Oregon congressional delegation. Reps. Maxine Dexter, D-OR, Janelle Bynum, D-OR, and Andrea Salinas, D-OR, all attended the luncheon. Rep. Val Hoyle, D-OR, was invited but was unable to attend. During her remarks, Bonamici spoke about her experiences as a mother, the continued underrepresentation of women in Congress (currently about 28%), and the importance of education. Her comments provided a natural introduction to Hayes, whose personal story was both inspiring and memorable. Hayes shared her journey from a challenging upbringing to being named National Teacher of the Year in 2016 and later becoming the first African American woman elected to represent Connecticut in Congress in 2018. There were well over 500 attendees and donors at the event, and NARFE was well represented by Wayne Mercado (Oregon Federation President), Deb Hollen (Chapter 912), Kathleen Williams 48

NARFE MAGAZINE SEPTEMBER 2026

PHOTO FROM LEFT: REP. BONAMICI, REP. HAYES AND WAYNE MERCARDO, NARFE OREGON FEDERATION PRESIDENT

(Chapter 912 President and Congressional District Leader OR-3), Jim Hearns (Chapter 29 and Congressional District Leader OR-1), and Stephanie Schaeckermann (Chapter 79).

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NARFE members contributed for Alzheimer’s research: $18 Million Fund $17,250,709.36 *Total as of June 30, 2026. 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.

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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: ___________________________________________________________

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NARFE ELECTION VOTING INSTRUCTIONS

NARFE is conducting the 2026 National Election using a secure, PIN-based voting system. Please follow all instructions carefully to ensure your vote is counted. Any member in good standing as of June 30, 2026, is eligible to vote in the election. You may cast your vote either online or by mail. Once your voting PIN is used, it cannot be used again; a paper ballot received after an online vote is cast by the same member will be deemed invalid. Please review the simulated ballot on pages 53-54 before voting. Thank you for participating in NARFE’s election process. ABOUT THE ELECTION

You may vote for one candidate in each position, including national officers and the vice president for your region; region is determined by the NARFE federation in which your chapter is located or the state listed as your mailing address if not a chapter member. If you vote for a regional candidate in a region other than your own, that vote will not count. For more information, visit www.narfe.org/2026-narfe-national-election/. Bylaws proposals: You may vote yes or no on each bylaws or standing rules amendment proposal individually. The Bylaws Committee recommends that all proposals be adopted. To review the full proposal text and committee’s rationale, visit www.narfe.org/2026-narfe-national-election/.

HOW TO VOTE ONLINE

Election Services Co. will contact all eligible members who have an email address on file with NARFE with voting credentials. Please look for an email from “Election Services Co. for NARFE” (narfehelp@ electionservicescorp.com) when voting opens. Be sure to check your Spam or Junk folder. Click the link in the email to vote on the ESC website. You will use your member ID number and PIN to log in. • Once logged in, follow the online voting instructions. Members will see only those candidates for whom they are eligible to vote. • Online voting begins August 26, 2026, and ends at 11:59 p.m. ET on September 30, 2026.

HOW TO VOTE BY MAIL

Requests for paper ballots were due August 14, 2026. If you do not receive your requested ballot by September 8, 2026, email narfehelp@electionservicescorp.com or call 1-866-720-4357 (Monday to Friday, 9 a.m. to 5 p.m. ET).

To cast your vote:

Ballots must be placed in an envelope (not • Place an X, check mark, or darken the box to provided) with appropriate postage and mailed to: indicate your choices. Use dark blue or black NARFE Ballot Processing ink. c/o Election Services Co. • Do not write your name or otherwise identify PO Box 9020 yourself on the ballot. Ronkonkoma, NY 11779-9020 • Ballots must be received at Election Services Co. by 11:59 p.m. ET on September 30, 2026. Please mail your ballot at least 10 days before the deadline. Ballots received after this deadline will not be counted. • Do NOT mail ballots to NARFE National Headquarters. Ballots sent to NARFE cannot be forwarded and will not be counted. • If you do not know your member number, check the address label on your magazine or email memberrecords@narfe.org for assistance.

NARFE MAGAZINE SEPTEMBER 2026

NARFE ELECTION

SAMPLE 2026 Election Ballot The candidates below and and proposals on the next page appear online on the Election Services Corp. voting site and on paper ballots mailed to members upon request. All NARFE members are eligible to vote online at vote.escvote.com/narfe. Your member number: _______________ Your region: _________________ National Officer Candidates You may vote for one candidate for each position. National President

National Secretary/Treasurer

c Deborah Fisk

c Cindy Renee’ Blythe

c William “Bill” Shackelford Regional Vice President Candidates For the regional offices below, you may vote for one candidate in your region. The Region is based on the NARFE Federation in which your chapter is located or the state listed as your home address if not a chapter member.

Region I Vice President c Jeff Anliker

Region II Vice President c Melody Kebe c Paul K. Schwartz

Region VI Vice President c Patricia Ashton c Marshall Richards

Region VII Vice President c Sharon Reese

Region III Vice President

Region VIII Vice President

c Huelyn “Lynn” Harper

c John Almquist

c Don Murphy

c Martha Raup

Region IV Vice President

Region IX Vice President

c Edward Konys

c Curtis Price

Region V Vice President

Region X Vice President

c Linda Sawvell

c Robert Allen

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NARFE ELECTION BYLAW AND STANDING RULE AMENDMENT PROPOSALS A “yes” vote is a vote to adopt the proposal, and a “no” vote is a vote to reject the proposal. Complete details on each proposal can be found at www.narfe.org/2026-narfe-national-election. B-26-03: Permits Regional Vice Presidents to simultaneously serve as officers of a chapter or federation.

c Yes

B-26-05: Updates Annual Meeting and election provisions to align with NARFE’s current election cycle and conference procedures.

c Yes

B-26-06: Transfers authority for establishing national membership dues from the membership to the National Executive Board, with advance notice and an opportunity for member comment.

c No

c Yes c No

B-26-07: Designates the National Secretary/Treasurer as the approving authority for chapter bylaws and bylaw amendments.

c Yes

B-26-08: Designates the National Secretary/Treasurer as the approving authority for federation bylaws and bylaw amendments.

c Yes

B-26-09: Removes language designating the National Executive Board as the ﬁnal governing authority over headquarters operations, including personnel decisions and organizational structure, to comply with Section § 29-406.40 of the District of Columbia Nonproﬁt Corporation Act.

SR-26-01: Reduces the minimum required chapter officer positions to president and treasurer (or secretary/treasurer).

SR-26-02: Removes the requirement that the National Executive Board announce Annual Meeting dates and locations two years in advance.

SR-26-03: Replaces the requirement to publish a paper ballot in NARFE Magazine with a requirement to publish voting instructions.

c No

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c No

c Yes c No

NARFE ELECTION BYLAW AND STANDING RULE AMENDMENT PROPOSALS IN DETAIL The Bylaws Committee recommends that all proposals be adopted.

B-26-03: Permits Regional Vice Presidents to simultaneously serve as officers of a chapter or federation. • Amend Article IV, Section 1A by deleting the final sentence “No RVP shall simultaneously hold office in any chapter or any federation.” B-26-05: Updates Annual Meeting and election provisions to align with NARFE’s current election cycle and conference procedures. • Amend Article V, Section 1B by deleting “Candidates for election to national office and regional office shall be offered the opportunity to address the conference attendees and answer questions at this business session. A synopsis of the bylaws discussion shall be posted on the NARFE website. Elections of national officers and RVPs and voting on bylaws amendments shall be decided by ballot vote submitted to members after the national conference. Decisions reached at the national conference shall be subject to a follow-up vote by the membership for ratification.” • Amend Article V, Section 1 by inserting new Subsection C. “Candidates for election to national office and regional office shall be offered the opportunity to address the business session on the year of the election cycle.” • Amend Article V, Section 3 by inserting new paragraph A. “A synopsis of the bylaws discussion shall be posted on the NARFE website.” and renumber remaining paragraph. B-26-06: Transfers authority for establishing national membership dues from the membership to the National Executive Board, with advance notice and an opportunity for member comment. • Amend Article III, Section 3A by replacing “Members shall pay dues of $48 for one year, $92 for two years, and $126 for three years. For dues withholding annual dues are $42.” with “It is the NEB’s responsibility to carry out its mission in accordance with its fiduciary obligations. This includes addressing adequate financial resources to meet the organization’s goals. The NEB may from time to time amend the membership dues. Prior to implementing amended dues, NEB shall publicize proposed changes three months prior to implementation seeking membership comment.” • Amend Article III, Section 4A by deleting “changes to national dues”. • Amend Article III, Section 4B, by deleting “national dues or”.

B-26-07: Designates the National Secretary/Treasurer as the approving authority for chapter bylaws and bylaw amendments. • Amend Article IX, Section 2A by adding “by the National Secretary/Treasurer.” B-26-08: Designates the National Secretary/Treasurer as the approving authority for federation bylaws and bylaw amendments. • Amend Article VIII, Section 2 by adding “by the National Secretary/Treasurer.” B-26-09: Removes language designating the National Executive Board as the ﬁnal governing authority over headquarters operations, including personnel decisions and organizational structure, to comply with Section § 29-406.40 of the District of Columbia Nonproﬁt Corporation Act. • Amend Article VI, Section 2 by deleting the final bullet “Be the final governing authority over all NARFE headquarters operations, including hiring, termination, organizational structure, and business conducted on behalf of the organization.” SR-26-01: Reduces the minimum required chapter officer positions to president and treasurer (or secretary/treasurer). • Amend Standing Rule IV, Section 2D by replacing the first sentence “Each chapter shall have a president, vice president (or first and second vice president), a secretary, and a treasurer (or secretary/treasurer).” with “Each chapter shall elect, at a minimum, a president, and a treasurer (or a combined secretary/treasurer). To preserve proper financial controls and separation of duties, no two individuals serving in these offices shall be related.” SR-26-02: Removes the requirement that the National Executive Board announce Annual Meeting dates and locations two years in advance. • Amend Standing Rule V, Section 1 by deleting the words “during the following two years.” SR-26-03: Replaces the requirement to publish a paper ballot in NARFE Magazine with a requirement to publish voting instructions. • Amend Standing Rule I, Section 2 by replacing the second word “ballot” with “balloting instructions to vote.”

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Our AMERICAN Adventure

2026-2027CALENDAR

16-MONTHS OF NATIONAL ICONS

Your donation to NARFE works 365 days a year. GIVE TODAY and we’ll send you this calendar to remind you of the great

things that NARFE does for you every day. Go to www.narfe.org/reserve-calendar to reserve your calendar. or more will go a long Your gift in this amount d pay and benefits! Hurry! Quantities are limited. y to protect ing your earne wa

FR26CAB

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q CHECK ENCLOSED (payable to NARFE) OR CREDIT CARD INFORMATION:

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PLEASE MAIL COUPON AND CHECK TO: NARFE DONATE NOW, Attn: Fundraising 606 N. Washington St., Alexandria, VA 22314

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

Special Section

Consolidated Financial Statements for the Year Ended December 31, 2025 REPORT OF THE NATIONAL SECRETARY/TREASURER

Each year, the National Secretary/Treasurer prepares a report on the financial health of the organization once the Annual Audit has been performed. For the past several years, NARFE has received an unmodified, or “clean” opinion. A “clean” opinion is achieved relatively easy if financial statements are fairly presented and free of material errors. NARFE has presented accurate, organized financial records. We utilize strong internal controls (segregation of duties, approval and oversite), clear documentation and proper handling of restricted funds. The annual audit was performed by CBIZ, formally MARCUM L.L.P., in accordance with general accepted accounting practices. NARFE’s financial statements are prepared using the accrual basis, which means that revenue is recognized when earned while expenses are recognized when incurred. Each year, both the general operating and investment funds, as well as NARFE-PAC statements are provided to the auditors. Total revenue for 2025 increased by $1.2 million. This is supported by an increase of $273 thousand in contributions as well as a $570 thousand increase in investment income. NARFE assets totaled $16 million, an increase of $895 thousand. Cash and cash equivalents increased $263 thousand, while accounts receivable increased $145 thousand and investments increased by $417 thousand. There was a positive change in net assets in 2025 of $973 thousand. NARFE’s net assets total $11.6 million; seeing a $782 thousand increase in net assets without doner restrictions and a $191 thousand increase in net assets with doner restrictions. Our partnership with Morgan Stanley Investments continues to see positive results. Expenses have increased in the areas of supporting services, office expenses, and professional fees while salaries and benefits, contract services, political contributions, and program services decreased. Over-all our liabilities decreased by $77 thousand. Membership revenue shows a decrease from 2024 by 7%, dropping from 52% to 47%. However, NARFE realized a net increase in cash of $263 thousand. Working with Street Level Studios and BRG, we continue to invest in membership marketing to reach our goal of increasing membership. —Cindy Reneé Blythe

REPORT OF THE NATIONAL EXECUTIVE BOARD AUDIT COMMITTEE

The National Active and Retired Federal Employees (NARFE) Audit Committee and staff met with the association’s external auditors, CBIZ CPAs virtually on June 8, 2026. The purpose of the meeting was to review and discuss NARFE’s annual financial audit for the year ended December 31, 2025. NARFE financial statements are reported on a calendar year basis. The auditors provided a comprehensive review of NARFE’s Consolidated Financial Statements. CBIZ CPAs stated: “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, 2025, 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.”. In 2025, Total Assets equaled: $16,026,483 as compared to Total Assets in 2024 which equaled: $15,131,155. In 2025 Total Net Assets were: $11,559,516, compared to Total Net Assets in 2024 which equaled: $10,586,829. Total Revenue & Support in 2025 equaled: $9,833,386, and Total Expenses for 2025 were: $9,051,654. By contrast in 2024, Total Revenue & Support equaled: $8,775,451 and Total Expenses were: $8,987,764. NARFE enjoyed a one-time tax credit in 2025 of $789,650 from the Employee Retention Tax Credit, (P.L. 116-136). The generosity of individual Member Contributions has increased from: $2,093,579 in 2024 to: $2,366,801 in 2025. Pursuant to the Audit Committee’s recommendation, the NEB will receive the National NARFE Audit Committees’ report at the August meeting. The committee is appreciative of NARFE senior management and staff for their contributions to ensuring a “clean audit” for yet another year.. —John W. Almquist, Chair. (RVP Region VIII) —Linda M. Sawvell, (RVP Region V) —Patricia Ashton, (RVP Region VI) —Cindy Renee Blythe (National NARFE Secretary/ Treasurer) —William Shackelford (National NARFE President)

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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 Federal Employees Association and Affiliate (collectively referred to as “the Association”), which comprise the consolidated statement of financial position as of December 31, 2025, 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 (collectively referred to as the “financial statements”). In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position, of the Association as of December 31, 2025, 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 Organization 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 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 for one year after the date that the 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

NARFE MAGAZINE SEPTEMBER 2026

our opinion. Reasonable assurance is a high level of 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 one 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 consolidated 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 accompanying 2025 consolidating schedule of financial position and activities on page 18-19 is presented for the purpose 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 2025 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 GAAS. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole. Other Matter Report on Summarized Comparative Information We have previously audited National Active and

Retired Federal Employees Association and Affiliate’s 2024 consolidated financial statements, and we expressed an unmodified audit opinion on those audited consolidated financial statements in our report dated June 26, 2025. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2025, is consistent, in all material respects, with the audited financial statements from which it has been derived. CBIZ CPAs P.C. Washington, DC May 8, 2026

National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Financial Position December 31, 2025 (With Summarized Financial Information for the Year Ended December 31, 2024

National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Financial Position December 31, 2017 (With Comparative Totals as of December 31, 2016 and 2015)

Additional NARFE Financial Data (provided by NARFE Headquarters for members’ information) The salaries of the National Executive Board, as of December 31, 2025, are as follows (rounded): President: $130,000 Secretary/Treasurer: $116,000 Regional Vice Presidents: $14,477

In 2025, NARFE’s investments were held with these firms: •O perating Fund: Morgan Stanley • Building Fund: Morgan Stanley •L ife Membership Trust Fund: Morgan Stanley • Contingency Fund: Morgan Stanley • PAC Fund: Raymond James

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National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Activities for the Year Ended December 31, 2025 (With Comparative Totals for the Year Ended December 31, 2024)

NARFE MAGAZINE SEPTEMBER 2026

National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Functional Expenses for the Year Ended December 31, 2025 (With Comparative Totals for the Year Ended December 31, 2024)

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National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Cash Flows for the Year Ended December 31, 2025 (With Comparative Totals for the Year Ended December 31, 2024)

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, 2025

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

Organization: National Active and Retired Federal Employees Association (“NARFE”) was established in 1921 to advance the general welfare of its more than 128,000 members and to aid them in securing their rights under federal retirement laws. NARFE is incorporated under the laws of District of Columbia. Its programs include legislative, federal benefits, communications and conferences. These activities are primarily funded by membership dues and contributions and revenue derived from advertising. There are fifty-three (53) federations, located in the United States, District of Columbia, Panama, Puerto Rico, and the Philippines, that are affiliated with NARFE and conduct local independent 60

NARFE MAGAZINE SEPTEMBER 2026

programs. Ten percent of all eligible member national dues collected are passed-through to these federations to facilitate local activities. In addition, there are 643 chapters affiliated with NARFE that are located in the United States and some international locations. The chapters are established by members to increase the scope and effectiveness of NARFE. Chapter dues are established by the chapters and are billed and collected by NARFE with the national dues. NARFE rebates to the chapters one-third of the national fee charged for all new members joining chapters. The federations and chapters are independent and autonomous organizations. As NARFE has no economic interest in or control of federations and chapters affiliates, their financial activities are not included in the accompanying consolidated financial

statements of NARFE. The federations’ bylaws must adhere to NARFE’s bylaws. NARFE has created a political action committee called NARFE PAC.

Basis of Accounting: These consolidated financial statements have been prepared on the accrual basis of accounting in accordance with acounting principles generally accepted in the United States of America (“GAAP”). Consequently, revenue is recognized when earned and expenses are recognized when incurred. Principles of Consolidation: The accompanying financial statements as of and for the year ended December 31, 2025, of NARFE and its affiliate, NARFE PAC (collectively referred to as “the Association”) have been consolidated because they are 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, 2025, the Association had not increased its historical loss rate, as receivable amount 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, exchange-traded funds, corporate bonds and certificate of deposits. 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, 2025, 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 activies.

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 $2,117,172. • 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, 2025, 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 then 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. Contributions: Unconditional contributions received are recorded

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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. Investment Income: Realized and unrealized gains and losses and investment income (loss) derived from investment transactions are included as income in the year earned. Advertising: Advertising revenue is recognized at the point in time when the advertisements are published, which is consistent with when the performance obligation is satisfied. Revenue from these activities received in advance of the period to which the revenue pertains is reported as deferred revenue in the accompanying consolidated statement of financial position. Royalties: The Association receives various royalties from other organizations. These royalties are primarily from membership benefits

offered to members of the Association. The revenue is recognized at the point in time when it is 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 at the point in time when 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.

Employee Retention Tax Credit: The Employee Retention Tax Credit (“ERTC”) is considered a conditional contribution. Revenue was recognized when the Association satisfied the eligibility requirements established by the federal government and the government approved the Association’s application for the credit. The conditions were met when approval was received in 2025, and the related revenue was recognized during the year ended December 31, 2025. Revenue recognized over a period of time is as follows for the year ended December 31, 2025.

Impairment of Long-Lived Assets: The Association reviews its property for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If the fair value is less than the carrying amount of the asset, an impairment loss is recognized for the difference. As of December 31, 2025, the Association has not recognized an impairment loss. Functional Allocation of Expenses: The costs of providing the various programs and other activities have been summarized on a functional basis in the accompanying statement of functional expenses. Expenses directly attributed to a specific functional area of the Association are reported as expenses of those functional areas and are charged 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.

NOTE 2 – INVESTMENTS AND FAIR VALUE MEASUREMENTS

The following table summarizes the Association’s assets measured at fair value on a recurring basis, aggregated by type and fair value hierarchy level within which those measurements were made:

Mutual funds and exchange-traded funds – Value of these funds is based on quoted market prices in active markets. Corporate bonds – Valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable characteristics. Certificate of deposits – Value was determined using contractual cash flows and current interest rates for certificates of deposit with similar remaining time to maturity. 62

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NOTE 3 – PROPERTY AND EQUIPMENT AND RELATED DEPRECIATION The Association held the following property and equipment as of December 31, 2025:

Depreciation and amortization expense was $134,226 for the year ended December 31, 2025. .

NOTE 4 – NET ASSETS

Net Assets Without Donor Restrictions As of December 31, 2025, the Association’s net assets without donor restrictions were composed of the following:

Net Assets With Donor Restrictions As of December 31, 2025, net assets with donor restrictions were available for the following purposes:

NOTE 5 – REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table provides information about significant changes in the Association’s deferred membership revenue for the year ended December 31, 2025:

NOTE 6 – RISKS AND COMMITMENTS CONCENTRATION OF CREDIT RISK

The Association maintains its cash andcash equivalents with a certain commercial financial institution, which aggregate balance, at times, may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit of $250,000 per depositor per institution. As of December 31, 2025, the amount in excess of them maximum limit insured by the FDIC was approximately $1,320,000. The Association monitors the credit worthiness 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 investments are exposed to various risks, such as interest rate, market volatility, and credit risks. Market risks include global events which could impact the value of investment securities, such as pandemic or international conflict. Due to the level of risk 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.

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NOTE 7 – AVAILABILITY AND LIQUIDITY

The Association regularly monitors liquidity required to meet its annual operating needs and other contractual commitments, while also striving to preserve the principal and return on the investment of its funds. The Association’s financial assets available within one year of the statement of financial position date for general expenditures at December 31, 2025, were as follows:

NOTE 7 (CONT.)

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 other obligations as they come due. Management is focused on sustaining the financial liquidity of the Association throughout the year. This is done through monitoring and reviewing the Association’s cash flow needs on a regular basis. As a result, management is aware of the cyclical nature of the Association’s cash flow related to the Association s various funding sources and is therefore able to ensure that there is cash available to meet current liquidity needs. As part of its liquidity plan, excess cash is invested in publicly traded investment vehicles, including mutual funds, or to support organizational initiatives. The Association can liquidate its investments anytime, and therefore the investments are available to meet current cash flow needs.

NOTE 8 – PENSION PLAN

The Association has a Retirement Savings Plan (“the Plan”). Employees are eligible to participate in the Plan on the first day of the month coinciding with or next following the employee’s hire date. Employees become eligible for employer matching funds on the first day of the Plan Year (January 1) or the first day of the seventh month of the Plan Year (July 1) coinciding with or next following

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hire date. Once eligible, an employee is 100% vested. The Association matches 60% of each employee’s voluntary contribution up to 6% of annual compensation. Total contributions made by the Association were approximately $55,000 for the year ended December 31, 2025.

NOTE 9 – INCOME TAXES

The Association is exempt from federal income taxes under Section 501(c) (5) of the Internal Revenue Code (“IRC”). However, income from certain activities not directly related to the Association’s tax-exempt purpose is subject to taxation as unrelated business income. The Association generates unrelated business income from advertising. The Association’s provision for unrelated business income tax expense was approximately $24,000 for the year ended December 31, 2025. NARFE PAC is subject to federal income taxes under IRC Section 527 with respect to certain investment income. For the years ended December 31, 2025 no provision for federal or state income taxes was made, a there was no significant taxable income. The Association follows the authoritative guidance relating to accounting for uncertainty in income taxes included in FASB ASC Topic 740, Income Taxes. These provisions provide consistent guidance for the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribe a threshold of

“more likely than not” for recognition and derecognition of tax positions taken or expected to be taken in a tax return.

NOTE 10 – PRIOR YEAR SUMMARIZED FINANCIAL INFORMATION

The accompanying consolidated financial statements include certain prior year summarized comparative information in total, but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with GAAP. Accordingly, such information should be read in conjunction with the Association’s financial statements for the year ended December 31, 2024, from which the summarized information was derived.

NOTE 11 – SUBSEQUENT EVENTS

The Association’s management has evaluated, for potential recognition or disclosure, events and transactions through May 8, 2026, the date the financial statements were available to be issued. There were no subsequent events identified that require recognition or disclosure in these consolidated financial statements..

Supplementary Information Consolidating Schedule of Financial Position December 31, 2025

Consolidating Schedule of Activities for the Year Ended December 31, 2025

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