P. 22 Retirement Planning From the ‘Fork in the Road’
P. 32 Joining the Electric Vehicle Charge
SEPTEMBER
EDITORIAL DIRECTOR
Jenn Rafael
CREATIVE SERVICES MANAGER
Beth Bedard
SENIOR CONTENT MANAGER
Matt Sanderson
ADDITIONAL GRAPHIC DESIGN
TGD
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William Shackelford, Cindy Reneé Blythe
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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.
Gearing Up for Mid-Term Elections
Now that LEGcon25 and Grassroots Advocacy Month are completed, NARFE members need to begin looking towards the future. Specifically, efforts need to be directed to ensure that NARFE issues remain at the forefront of all conversations leading up to the midterm elections in November 2026. As federal employees or retirees, we share a set of common goals and responsibilities. We have contributed significantly to this country, and we have united in protecting the interests of the federal community by preserving and enhancing the earned pay and benefits of both active and retired federal employees.
During LEGcon25, individuals gained knowledge that enabled them to participate in worthwhile and constructive meetings and to be well-prepared to advocate on behalf of our community with their members of Congress and their staff. I hope that the top-notch training you received was utilized at your meetings during Grassroots Advocacy Month in August. However, our efforts should not stop now. While the midterm elections are approximately 14 months away, many jurisdictions will be holding primaries in Spring 2026. Remember, to advance our mission and defend the rights and benefits of the federal community, grassroots advocacy is one of the most effective ways to encourage action by our elected representatives.
KUDOS
I want to congratulate our membership engagement partner, Street Level Studio, on their award-winning performance on our behalf in the 2025 American Digital Design Awards. This competition recognizes and honors the creation of impactful digital advertising. From approximately 3,000 entries, Street Level Studio was honored with the “NARFE online ad creative.” Additionally, our Street Level Studio partner, Tanya Fretheim, was honored as an industry-leading “Graphic Design Person To Watch.”
CONDOLENCE
Membership recruitment has always been a priority within our organization. Some of our members have exceeded in monumental ways. These individuals are true NARFE Ambassadors. On May 20, 2025, NARFE lost a top recruiter. Marie Collins, a member of Peninsula Chapter 682 in the Virginia Federation of NARFE, passed away at the age of 100. At the 2016 Biennial NARFE National Convention, Marie was recognized as a Platinum Recruiter, having recruited over 120 new members to NARFE. She also served for many years as the Membership Chair of the Peninsula Chapter. The most remarkable thing about Marie and her outstanding efforts related to membership is that she maintained all of her chapter membership records on 3x5 index cards.
Thank you for your support. Remember, an interested member is an involved member!
WILLIAM SHACKELFORD NARFE NATIONAL PRESIDENT natpres@narfe.org
MISS A WEBINAR?
CATCH UP on past NARFE Federal Benefits Institute presentations in NARFE’s Webinars on Demand, where you’ll find videos, slides and transcripts of question-and-answer sessions for webinars dating back to 2019. View them at www.narfe.org/webinar-archive.
NARFE Members Get a Discount from 1-800-GOTJUNK?
When junk starts to pile up in your home, it can become overwhelming to remove it alone. Instead of stressing
about it, bring in some outside help! NARFE members receive an exclusive 10% discount from its affinity partner 1-800-GOTJUNK?, which handles junk removal services. Use code NARFE10. For more information on this and other NARFE perks, turn to the top of page 62.
STAY AHEAD OF NEWS THAT MATTERS
NARFE Daily News Clips features breaking news and informative articles from a variety of news outlets, curated just for NARFE members. To join the mailing list, visit www.narfe.org/clips.
TSP UPDATE ONLINE
Get the most recent monthly and annual Thrift Savings Plan returns (G, F, C, S, I and L Funds) online at www.narfe. org/tsp-funds
TRACKING RETIREMENT CLAIMS
Find out how many retirement claims OPM Retirement Services receives and processes each month, with average processing times and total inventory, at www.narfe.org/opm-processing
UPDATE YOUR NARFE PROFILE ONLINE
Did you recently retire? Update your profile in your NARFE account. You can mark yourself “retired” and request digital only copies of the magazine. When you sign into your NARFE account profile, you should be able to make an easy change to your “member type” by selecting the “Update Member Type” button below the “My Member Type” text box on the “My Profile” page. Any questions? Email communications@narfe.org .
Federal Benefit and Workforce Provisions
Dropped from H.R. 1 Before Passage
President Donald Trump signed into law H.R. 1, the “One Big Beautiful Bill Act,” on July 4, following Senate passage on July 1 by a 51-50 vote, with Vice President JD Vance breaking the tie, and House passage by a 218-214 vote of the Senate-amended version on July 3. While numerous provisions aimed at cutting earned federal retirement and health benefits, undermining merit-based civil service policies, or the freedom of association for federal employees were under consideration and included in previous versions of the bill, no federal workforce provisions opposed by NARFE made it into the final version.
The framework for H.R. 1 has been to extend and adjust tax policies, reducing revenues by about $4.5 trillion over 10 years, increase spending on defense, border security and immigration enforcement, and to mitigate the deficit increases from those policies through alternative spending cuts, reducing outlays by about $1.2 trillion over 10 years, for a total deficit increase of $3.3 trillion, per the latest estimates.
The original blueprint, H.Con.Res. 14, called for at least $50 billion in spending cuts targeted at changes to federal workforce policies, including reductions in retirement and
health benefits, according to a list of options under
consideration. NARFE has been opposing the inclusion of the objectionable federal workforce provisions since January, when they were revealed.
Under the blueprint’s instructions, the House Committee on Oversight and Government Reform (OGR) developed a “Committee Print” that advanced most of the options under consideration, including the following objectionable provisions:
• Eliminating the Federal Employees Retirement System (FERS) annuity supplement that provides an additional
SEPTEMBER ACTION ALERT: PROTECT MERIT BASED CIVIL SERVICE SYSTEM
Visit NARFE’s Legislative Action Center at www.narfe.org urge your lawmakers to cosponsor the Saving Civil Service Act, H.R. 492/ S. 134. This act would prevent the implementation of Schedule Policy/Career, formerly referred to as Schedule F, which would reclassify thousands of federal positions into a new excepted service category without providing competitive service protections. H.R. 492/ S. 134 would require hiring and firing civil servants based on merit, ensuring the public’s expectations of a system that is efficient, fair, protected against undue political interference. Merit-based civil service rules are integral to preserving professionalism, institutional knowledge and expertise within the federal government.
annuity amount for retirees before reaching Social Security eligibility age. This would have taken effect as of the date of enactment, reducing retirement benefits for vested employees nearing retirement.
• Calculating retirement annuities based on the highest five years of pay rather than the highest three years of pay. This would have applied to retirements beginning on or after January 1, 2027.
• Increasing federal employee contributions from payroll towards FERS to 4.4%, phased in over two years. This represents a 3.6% pay cut for employees hired before 2013.
• Forcing employees to choose between at-will employment or an additional 5% increase in contributions toward FERS, essentially an additional 5% pay cut.
• Charging a fee for appeals to the Merit Systems Protection Board (MSPB).
The only silver lining of the initial release was the committee’s decision to exclude a provision that would have shifted the Federal Employees Health Benefits (FEHB) program to a voucher system rather than a premium support system, which would have forced federal employees and retirees to pay more and more, year after year
MYTH VS. REALITY
MYTH: I have to call the Office of Personnel Management’s (OPM) customer service center to do anything regarding my annuity account.
REALITY: OPM has Retirement Services Online, where you can access your annuity account anytime. Some of the changes you can make online include viewing your monthly annuitant payment statement, verifying life insurance (FEGLI) enrollment, accessing your 1099-R tax form, and more! You learn how to create an account, what all you can do with an account, and even what you can do without an account online at https://www.opm.gov/support/retirement/ how-to/getting-started-with-opm-retirement-services-online/
for their earned federal health benefits.
The OGR language then went to the House Budget Committee, which packaged it with proposals from other committees into one large budget reconciliation bill, H.R. 1, known as the “One Big, Beautiful Bill,” and sent it to the House Rules Committee to prepare it for floor consideration.
The good news is that the House Rules Committee amended the bill as follows:
• Removed the provision to increase contributions towards retirement for current federal employees.
• Removed the provision to calculate retirement annuities based on the highest 5 years of pay rather than the highest 3 years of pay.
• Exempted those subject to mandatory early retirement from the choice between at-will employment and further increased retirement contributions.
• Moved the effective date for the elimination of the FERS annuity supplement back to 1/1/28.
The bad news is that the House passed the bill with the remaining provisions included, by a vote of 215-214-1 on May 22.
Next came the introduction of the Senate’s draft language related to the federal workforce,
released by Senate Homeland Security and Governmental Affairs Committee Chairman Rand Paul, R-KY. Paul’s version spelled good news related to federal benefits for current federal employees and retirees, but bad news for future federal workforce policy.
Unlike the House Oversight and Government Reform Committee-supported and House-passed federal workforce provisions, Paul’s version did not include any cuts to benefits for existing federal employees and retirees. However, Paul’s version would have increased contributions toward retirement by another 5% (above the existing 4.4%) for new federal employees and forced them to choose between accepting an additional 5% tax or relinquishing merit-based civil service protections designed to prevent a politicization of the civil service. It also retained the imposition of a filing fee for appeals to the MSPB.
Paul’s language would also have imposed a 10% tax or service fee on payroll deductions by federal employees to 501(c)(3)-(5) organizations (including dues for unions and other associations representing such employees). Note: this
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
LEGcon25 Drives Grasstops Advocacy Efforts
In June, NARFE hosted its biennial legislative conference, LEGcon25, which brought together 225 attendees from 46 states and Washington, D.C., to learn about NARFE’s legislative priorities, develop the skills to advocate for the federal community, and apply their training in a full day of congressional meetings.
LEGcon25 kicked off day one with opening remarks from NARFE National President William “Bill” Shackelford, followed by an update on NARFE’s advocacy efforts by Staff Vice President of Policy and Programs John Hatton. We were then honored to have our first round of congressional speakers, Reps. Kweisi Mfume, D-MD, Glenn Ivey, D-MD, Don Beyer, D-VA, and Sens. Chris Van Hollen, D-MD, and Tim Kaine, D-VA. LEGcon25’s first day concluded with the first of three breakout session slots, where attendees learned about grassroots strategies, maximizing the impact of their congressional meetings, and the ins and outs of NARFE-PAC.
LEGcon25 day two began with our second round of congressional remarks, including Reps. Mike Turner, R-OH, Brendan Boyle, D-PA, Jamie Raskin, D-MD, and Melanie Stansbury, D-NM. The members of Congress were followed by a presentation from political consultant and author Bradford Fitch, titled “Advocacy in the Age of Trump,” where he broke down
the shifts we are experiencing in the advocacy space and how we can adapt effectively to these changes. The day concluded
NARFE THANKS EACH MEMBER WHO CHOSE TO GIVE THEIR TIME TO LEGCON25 , AND WE ARE PROUD OF THE VOICES IN OUR ORGANIZATION THAT FIGHT FOR THE FEDERAL COMMUNITY.
with the final two breakout sessions, followed by a panel of congressional staffers. The panel consisted of Khamare Garner, special advisor to Sen. Elizabeth Warren, D-MA; Terrance Taylor, district director for Rep. Steny Hoyer, D-MD; and Meera Dheer, legislative director for Rep. Dan Goldman, D-NY. The answers from these three seasoned Hill staffers provided us with insight into how to leave a positive, lasting impression, and, perhaps more importantly, how to avoid leaving a bad taste in anyone’s mouth. This left us with the final pieces of advice before we entered our Advocacy Day.
The finale of LEGcon25 was a full day of advocacy, where attendees met with members of Congress and their staff to advocate for the federal community. In total, 227 meetings were confirmed,
representing a 99% confirmation rate for scheduling requests. Of these, 87 were from the Senate, and 140 were from the House. Breaking down the number further, 117 meetings were held with Democrats, 108 meetings were held with Republicans, and two meetings were held with independent offices. Notably, 16 meetings were with members of Congress themselves, leaving the remaining 211 meetings to be handled by staff.
Following LEGcon25, NARFE is encouraging everyone to leverage these connections to create consistent, meaningful contact in the future. If you or your state met with a member of Congress, please reach out to their office to schedule a follow-up meeting with the relevant staffer. This will provide them with context from the meeting and ensure everyone is on the same page. If you meet with a member of staff, inquire with both the D.C. and local offices to see if you can meet with the member of Congress themselves, especially as we enter summer recess. Do not let the engagement from LEGcon25 go to waste by failing to maintain the relationship!
NARFE thanks each member who chose to give their time to LEGcon25, and we are proud of the voices in our organization that fight for the federal community. We hope to see everyone in 2027!
—BY NICOLE BLACKSTONE, GRASSROOTS AND POLICY MANAGER
Several Social Security and WEP/GPO Updates
On June 10, 2025, the Social Security Administration (SSA) issued updates regarding the Social Security Fairness Act (SSFA) and beneficiary records. These updates cover several important topics, including when beneficiaries can expect an increase in payments, how to handle Medicare premiums deducted from SSA benefits and federal pensions, tips for avoiding scams, and information about retroactive payments.
TIMING OF INCREASED BENEFITS
Most beneficiary accounts were automatically adjusted in February 2025, with retroactive payments and new monthly benefits disbursed in March and April of 2025, respectively. However, some accounts are more complex and require additional time for manual processing. According to the SSA, these complex cases are being expedited, and the agency is actively working to release past-due benefits and provide new monthly benefit amounts for each completed case. All beneficiary records are expected to be updated by early November 2025. Since the passing of the Act, the SSA has adjusted 91% of beneficiary records, totaling 2.5 million cases.
MEDICARE PREMIUM DEDUCTIONS FROM SSA BENEFITS AND FEDERAL PENSIONS
The Centers for Medicare and Medicaid Services (CMS) is aware that some beneficiaries are experiencing dual Medicare
premium deductions from their SSA benefits and federal pensions. They are working to refund those affected. There is no need to call, but if you have specific questions about this issue, please get in touch with CMS directly at 1-800-633-4227.
AVOIDING SCAMS
It can be challenging to avoid scams related to the SSFA. Be cautious of any communication requesting payment concerning the SSFA. The SSA will never ask beneficiaries to pay for assistance in starting, increasing, or processing benefits. If you receive a call or text requesting payment to expedite or enhance your benefits, hang up and do not engage with anyone making such offers. For more information on avoiding and reporting SSA-related scams, please visit the SSA’s Office of the Inspector General at http:// www.ssa.gov/scams.
RETROACTIVE PAYMENTS
According to the SSA, if you were receiving benefits that were reduced by the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO) as of December 2023 (the
last month those provisions were applied), any necessary payment adjustments will begin for benefits payable starting in January 2024 and will be disbursed in February 2024. To receive retroactive payments for those months, you must have been entitled to benefits that WEP or GPO either fully or partially reduced.
The SSFA did not change the rules regarding the retroactivity of benefit applications. Generally, the retroactivity for spousal retirement and survivor benefits is limited to six months before the month in which the benefit application is filed. NARFE has formally urged the SSA Commissioner to reevaluate the agency’s rules regarding retroactivity, particularly concerning discrepancies found in the six-month lookback period currently in effect.
For more information about the SSA’s WEP and GPO update, please visit their frequently asked questions page at https://www.ssa.gov/benefits/ retirement/social-securityfairness-act.html.
—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.
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
NARFE Submits Comment Opposing OPM Rule to Determine “Suitability” of Individuals for Federal Employment
NARFE submitted a comment opposing a new proposed rule by the Office of Personnel Management (OPM) to grant itself the authority to terminate federal employees employed by other federal agencies if it deems them in violation of “suitability” standards, previously used only for pre-employment screenings.
The proposed rule details an expanded set of suitability factors that clearly overlap with conduct and performance issues, where clear law and process already exist. If OPM determines that employees fail suitability standards, agencies would be required to remove the employee within five working days, per the rule. For employees subject to these new post-appointment suitability actions, an appeal “could be heard, but not mitigated, by the Merit Systems Protection Board (MSPB), a stark deprivation of due process and rights compared to the Title 5
THE
PROPOSED RULE DETAILS AN EXPANDED SET OF SUITABILITY FACTORS THAT CLEARLY OVERLAP WITH CONDUCT AND
PERFORMANCE
ISSUES,
WHERE CLEAR LAW AND PROCESS ALREADY EXIST.
statutory processes,” NARFE National President William Shackelford argued.
OPM argues that current processes for removing employees for misconduct are overly restrictive and inefficient, and the new rule would close a gap that makes it easier to block an applicant with a history of serious misconduct than
to remove a current employee engaged in similar actions.
In contrast, NARFE argues in its comment that “OPM’s proposal to convert half of all adverse actions against career federal employees into suitability actions would radically alter the system Congress established in the Civil Service Reform Act to guard against unwarranted personnel actions. This proposal, like OPM’s Schedule P/C rule that NARFE also opposed, is another dangerous attempt by the administration to strip civil service protections, deny due process, and politicize the civil service.”
NARFE’s comment further argued against expanding OPM’s role over existing federal employees, stating that expanded suitability factors lack clarity and that it bypasses a system established by, thereby sidestepping employee rights.
—BY MISSY LOVE, POLICY AND PROGRAMS ASSOCIATE
GET NARFE ADVOCACY UPDATES WEEKLY AND MONTHLY! Under the new administration and Congress, federal employee and retiree news is moving at a faster pace than ever. Receive timely updates from NARFE’s Advocacy Department every week in NARFE Newsline and once a month in NARFE Voices. Log into your NARFE account and visit www.narfe.org/communications/ enewsletter/ to sign up!
would only have applied to employees, not annuitants, and only for payroll deductions. He would also have forced unions to reimburse the government for utilizing government equipment, space, and employee time. The bill language would also have granted the president virtually unchecked authority to reorganize the federal government without prior congressional authorization.
Finally, Paul’s version would have provided bonuses of up to $10,000 for federal employees who identify cost savings and require an audit of the Federal Employees Health Benefits (FEHB) program to identify and drop from coverage ineligible
individuals (claiming coverage as family members). NARFE did not oppose these two provisions.
However, some of the provisions in Paul’s version violated Senate rules for budget reconciliation and were removed from the bill. These included provisions to charge a fee for MSPB appeals, forcing a choice between at-will employment and increased contributions toward retirement; granting the president broad authority to reorganize the federal government; charging labor unions for the use of government resources; and providing bonuses to employees who identify cost savings.
When the final text was released on June 27 and then updated via a manager’s
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amendment just before final Senate passage on July 1, only the provision to audit FEHB to ensure only those eligible remained in the bill, with all the remaining objectionable provisions removed. The Senate and House then passed the bill.
This represents a significant victory for NARFE and its members in a six-monthlong effort to oppose – and ultimately block – the passage of objectionable federal workforce provisions via budget reconciliation legislation (H.R. 1), including cuts to vested federal benefits for current employees and retirees, and provisions to undermine the merit-based civil service.
—BY JOHN HATTON, STAFF VICE PRESIDENT, POLICY AND PROGRAMS
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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. 1: One Big Beautiful Bill Act / Rep. Jodey Arrington, R-TX-19
The Senate-amended, final version of the bill that passed both chambers and was signed 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) instituting a fee to appeal adverse actions to the Merit Systems Protection Board (MSPB).
FEDERAL BENEFITS
H.Con.Res.14:
Establishing the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034 / Rep. Jodey Arrington, R-TX
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.
Sets federal government spending levels and instructs committees to reduce or increase deficits via changes in taxes and spending under their jurisdictions. Instructs the Committee on Oversight and Government Reform, which has jurisdiction over federal employment benefits, to reduce deficits by $50 billion.
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.
FEDERAL ANNUITIES
H.R. 491 /S.624: Equal COLA Act/ Rep. Gerry Connolly, D-VA-11 / Sen. Alex Padilla, D-CA
Cosponsors:
H.R. 491: 52 (D) 1 (R) S. 624: 9 (D) 2 (I)
Provides full cost-of-living adjustments, based on the relevant change in consumer prices, to Federal Employees Retirement System annuities.
Passed by the House of Representatives by a 217215 vote. 2/25/25
Senate-amended version (retaining relevant provisions that could impact federal benefits) passed by the Senate by a 51-48 vote. 4/5/25.
Senate-amended version (retaining relevant provisions that could impact federal benefits) passed by the House of Representatives by a 216214 vote. 4/10/25
Referred to the House Committee on Oversight and Government Reform 1/16/2025
Read twice and referred to the Senate Committee on Homeland Security and Governmental Affairs. 02/18/2025
NARFE’s Position: Support Oppose No position
OPM Seeks to End Performance Rating ‘Inflation’ with New Governmentwide Rules
The Office of Personnel Management (OPM) issued new guidance on June 17 on Performance Management for Federal Employees, which can be found online at https://www. chcoc.gov/content/performancemanagement-federal-employees.
The guidance rolls out OPM’s new government-wide standards for performance management, awards programs, and resolving poor performance. The new rules will apply to employees in the competitive service and excepted service who are in positions covered under subchapter I of chapter 43 of title 5 that were not changed earlier in the year in updates that applied to senior executives and senior professionals.
OPM instructs agencies that more must be done to reflect clear distinctions in employee performance and eliminate rating “inflation,” and to more specifically clarify
the requirements for “fully successful” and higher levels of ratings. OPM recommends three steps for agencies to take:
1. Pass/fail rating systems should only apply to seasonal employees, teachers, GS 1-4, and wage-grade employees.
2. Agencies are instructed to ensure that not too many employees are rated at the highest levels and to ensure that the distribution of overall employee ratings aligns with the overall performance of the agency or sub-unit.
3. Senior Executive Service (SES) managers who oversee 10 or more employees are required to document in their annual performance narrative the rating distribution of their subordinate employees and how that reflects the performance of the organization.
Along with this, OPM raises expectations for all federal
supervisors by adding a new required critical performance element, “holding employees accountable,” and expanding training for all supervisors.
The guidance provides additional information for supervisors, including the available tools for preventing and addressing unacceptable job performance. The guidance cites the new post-appointment suitability adjudication power, which NARFE has written comments opposing, as a potential remedy for employee conduct.
Agencies need to move fast. OPM expects reports from agencies by July 31, 2025, on their progress. Quarterly reports will follow thereafter. OPM’s goal is for agencies to be ready to implement the new performance management rules by October 1, 2026, the start of the new fiscal year.
—BY JASON BRIEFEL, CONSULTANT
NARFE BILL TRACKER
FEDERAL PERSONNEL POLICY
FEDERAL COMPENSATION
H.R.492/S.134: Saving the Civil Service Act of 2025 / Rep. Gerry Connolly, 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.
Provides federal employees with a 3.3% across-the-board pay raise in 2026, plus a 1% average increase to locality pay rates.
Referred to the House Committee on Oversight and Government Reform 1/16/2025
Read twice and referred to the Committee on Homeland Security and Governmental Affairs. 1/16/2025
Referred to the House Committee on Oversight and Government Reform 1/16/2025
Read twice and referred to the Senate Committee on Homeland Security and Governmental Affairs 1/16/2025
FEDERAL EMPLOYEES GROUP LIFE INSURANCE (FEGLI)
QTHE FOLLOWING QUESTIONS & ANSWERS were compiled by NARFE’s Federal Benefits Institute experts. NARFE does not provide legal, financial planning or tax advice or assistance.
I am considering retiring from federal service in six to seven years. Although I previously waived my coverage under FEGLI, I would like to reenroll in the basic FEGLI option to maintain it in retirement. To be eligible to carry the coverage into retirement, I know that I must have the coverage for at least the last five years before I separate. Is there any other way to obtain this coverage?
AIf a whole year has passed since you last waived your right to FEGLI coverage, you can enroll if you provide medical evidence of your insurability at your own expense. To do that, you will have to fill out a copy of Standard Form 2822, Request for Life Insurance, which will provide evidence of insurability and must be signed by a physician or healthcare provider. If the Office of Federal Employees Group Life Insurance (OFEGLI) approves your request, you will automatically be enrolled in Basic FEGLI. Suppose you are already enrolled or are enrolling in Basic FEGLI. In that case, you will have 31 days from the approval of form SF 2822 to also do one of the following: elect Option
A (Standard Optional Insurance) and/or Option B (Additional Optional Insurance), or increase your Option B multiples. You cannot get Option C, family coverage, unless you experience a qualifying life event (QLE). OFEGLI will notify your agency’s human resources office, and your coverage will take effect on the first day that you are in pay status on or after the date of OFEGLI’s approval.
As an active federal employee, if you have experienced a QLE such as marriage, divorce, spouse’s death, birth, or adoption of a child, you have another option. You may select or increase FEGLI coverage up to the maximum coverage based
on QLE without providing evidence of insurability. To elect coverage after a life event, you must complete SF 2817, Life Insurance Election, within 60 days of the QLE and submit it to your personnel office. See www.opm.gov/healthcare-insurance/lifeevents for more information.
Although employees may enroll in life insurance during an open enrollment period, this is rare and does not occur regularly. The last open enrollment was held in September 2016, with coverage effective the following year. Some federal employees who separate from federal service mid-career and return typically have a new 60-day opportunity to sign up for any FEGLI level upon rehiring. You can reduce or cancel your FEGLI life insurance at any time using form SF 2817, without waiting for an open season. You can change beneficiaries anytime by submitting form SF 2823, Designation of Beneficiary, to your human resources office or OPM’s Retirement Office if you have retired. The address for OPM’s Retirement Office is on page three of the form.
FERS RETIREMENT ANNUITY SUPPLEMENT
QI have reached my minimum retirement age (MRA) under the Federal Employees Retirement
System (FERS), and I have over 30 years of creditable service, making me eligible for the FERS Retirement Annuity Supplement (RAS). I have been working parttime for many of my federal service years, and this will cause my FERS benefit to be prorated based on my part-time service. Will the RAS also be prorated?
AThe procedure for computing the RAS for an employee working on a regularly scheduled part-time tour of duty is no different from that for a full-time employee. Although you earn a lower salary during your part-time service, this is already factored into the computation of the supplement. You may request a retirement estimate from your agency’s HR office, including an estimate of your RAS. You may estimate your RAS by following these four steps:
1. Create/log in to your Social Security online account and make a note of your estimated Social Security benefit payable at age 62. https://www. ssa.gov/myaccount/
2. Determine the number of full calendar years of your civilian FERS service. Civilian service includes time in active and honorable military service performed during a period covered by military leave with pay or leave without pay from civilian service, provided a military deposit is paid under the Uniformed Services Employment and Reemployment Rights Act (USERRA) rules.
3. Divide the number of full calendar years of FERS civilian service by forty.
4. Multiply the decimal obtained from step 3 above by the estimated Social Security benefit (from step 1 above). This produces an estimate of your monthly RAS.
Example: John is retiring with 28 years and 10 months of service under FERS. His estimated Social Security benefit at age 62 is $2,200 per month. Rounding out his service to the nearest calendar year, John’s estimated RAS will be computed as 29/40 = .725 x $2,200 = $1,595/ month. For more details, you can refer to the following chapter in the Civil Service Retirement System (CSRS)/FERS Handbook: https://www. opm.gov/retirement-center/publications-forms/ csrsfers-handbook/c052.pdf
THRIFT SAVINGS PLAN (TSP) LOANS
QWhat are my TSP loan options as an active federal employee, and would I be required to repay the loan if I separate from federal service?
AAs an active federal employee, you may borrow from your TSP account by applying for a general-purpose or primary residence loan. You can log in to your TSP account or call Thrift Line to
begin the application process. There is also a onetime fee of $50 for a general-purpose loan or $100 for a primary residence loan. This fee is deducted from the loan amount and never returned to your account. You repay the loan to your account with interest for over five years for a general-purpose loan and over 15 years for a primary residence loan. The interest rate, which remains the same for the duration of the loan, is based on the G Fund interest rate at the time of the loan application.
While federally employed, you repay the loan through payroll deductions; there is no penalty for paying off the loan early, and there is no requirement to repay the loan in full before separation from federal service. Separated employees cannot apply for a new loan unless they return to federal service; however, they can continue paying back a previous loan based on the original agreement. An arrangement can be made with TSP to continue making loan repayments by direct debit, check, or money order if you leave federal service with an outstanding loan.
For more information, including what to consider before taking a loan from your TSP, fees, borrowing limits, and the consequences of not fully paying back the loan, please refer to the following web page on the TSP website: https:// www.tsp.gov/tsp-loans/. When you borrow from For FECA COLA updates, visit narfe.org and search for FECA.
COUNTDOWN TO COLA
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.4% in June 2025. To calculate the 2026 cost-of-living adjustment (COLA), the 2025 third-quarter indices will be averaged and compared with the 2024 third-quarter average of 308.729. The percentage increase determines the next COLA. June’s index, 315.945, is up 2.34% from the base. As a reminder, CSRS annuities received a 2.5% COLA for 2025, while FERS annuities received a 2.0% COLA.
The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services.
your TSP account, you’ll lose out on investing the money you borrow while the money is out on loan and the growth of the funds borrowed that could amount to more than the interest you repay yourself.
RETIREMENT
CHANGE OF ADDRESS OR DIRECT DEPOSIT WITH SOCIAL SECURITY
QHow can I change my address or direct deposit information for my Social Security benefits or Supplemental Security Income (SSI) payments?
AIf you receive Social Security benefits (retirement, survivors, or disability) or are enrolled in Medicare, you can change your U.S. mailing address or direct deposit information online. You can do this using the “My Profile” tab in your personal “My Social Security” account at https://www.ssa.gov/myaccount/. You can also decide when the change will take place. U.S. citizens can also change their international address. These services are currently not available to individuals who receive SSI payments. However, if you receive SSI benefits, you can use the “My Profile” tab to check your address and payment method and update your phone number.
If you receive SSI payments, do not have a U.S. mailing address, or are unable to change your address or direct deposit online, you can call Social Security for assistance at 1-800-7721213 (TTY 1-800-325-0778), Monday through Friday, from 8 a.m. to 7 p.m. local time. You can also contact your local Social Security office if you have internet access. Locate your local Social Security office by accessing the office locator web page: https://www.ssa.gov/locator/.
OPM
QRETIREMENT CLAIM NUMBERS
What is the OPM retirement claim number?
AIt is a unique, seven-character string of numbers and letters that, along with a one-character “A” or “F” prefix and a one-character number or letter suffix, make up the nine-character account number. The combination of these numbers and letters protects annuitants’ account security. Claim numbers may be formatted differently on different OPM documents. They may show complete prefixes (showing “CSA” or “CSF”), have spaces or no spaces between characters, have hyphens or no hyphens (dashes) between characters, and may or may not show the suffix. CSA stands for “Civil
Service Active” and is the prefix for retirees. CSF stands for “Civil Service Final” and is the prefix for survivor annuitants. Examples:
CSA XXXXXXX 5
Prefix Claim Number Suffix
CSF XXXXXXX G
Prefix Claim Number Suffix
OPM uses claim and account numbers interchangeably, as most applications reference the full nine characters. Rarely will OPM reference only the seven characters that technically comprise the claim number as part of the account number.
FERS REEMPLOYED ANNUITANT WITHOUT DUAL COMPENSATION WAIVER
QI am considering reemployment in federal service, but I am currently receiving a FERS Basic Retirement Benefit and FERS RAS. I understand that the amount of my FERS retirement benefits will be deducted from my new salary. Will this reduction include the amount of the FERS RAS that I am still receiving from OPM?
AWhen a FERS retiree returns to federal service, the salary is typically reduced by the amount of the retiree’s regular gross annuity. The RAS is not part of the regular gross annuity, so the agency would not use income from OPM when computing the reduction to the salary payable. However, the income earned upon returning to federal service could affect the earnings test OPM uses to reduce the RAS each year. Suppose the reemployed annuitant is younger than 62 years of age. In that case, they will be required to respond to the annual earnings survey letter that OPM mails to FERS annuitants in receipt of the RAS each spring, reporting the income earned the previous year, which may reduce or possibly terminate the RAS payable. The reduction or termination is effective in the July FERS annuity payment (payable on August 1) after responding to the earnings survey letter.
One of the benefits of becoming a reemployed annuitant who is subject to the salary offset is that after completing a minimum of 18 months of reemployment, you may qualify for a supplemental FERS annuity. After five or more years of reemployment, your retirement benefit will be recomputed to reflect all your federal service. A supplemental annuity is an annuity that is added to your present annuity. A redetermined annuity is a recomputed annuity that takes the place of your present annuity.
Note: If you are reemployed with a “dual compensation waiver,” your new salary will not be subject to an offset of your FERS retirement
benefit. The purpose of a dual compensation waiver is to allow federal agencies to hire retirees without salary offset when there is “exceptional difficulty in recruiting or retaining qualified candidates for particular positions” or when a temporary appointment is needed to address an “emergency involving a direct threat to life or property or other unusual circumstances.”
TAX-FREE PORTION OF ANNUITY
QI previously elected a spousal survivor benefit when I retired from federal service, which affected the computation of the tax-free portion of my annuity each year. I reported my spouse’s death to OPM so that my annuity benefit will no longer be reduced for the cost of the election I made when I retired. Now that my annuity is no longer reduced, would I be able to change the computation of the taxfree portion of my annuity moving forward?
AW e are sorry to hear about your recent loss. Although your annuity has been restored (i.e., increased) to remove the reduction for the previously elected survivor benefit, the increased annuity does not change the cost recovery you
figured at the annuity starting date. The taxfree part of each annuity payment remains the same. For more information about choosing or canceling a survivor annuity after retirement, contact OPM’s Retirement Information Office at 1-888-767-6738. Also, for more details on recovering your previously taxed contributions to the retirement benefit, see IRS Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits https://www.irs.gov/forms-pubs/ about-publication-721 .
COURT ORDERED BENEFITS FOR FORMER SPOUSE AND FEHB FOR CURRENT SPOUSE
QI have been retired from federal service for many years, and I got married last year, adding my new spouse to my FEHB plan. Now that I have been married for over nine months, I am getting ready to elect a survivor benefit for my spouse. However, I have a divorce decree on file with OPM that states that my former spouse will receive the maximum survivor benefit payable from OPM upon my death. If my current and former spouses outlive me, will my current spouse be allowed to maintain FEHB coverage?
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Questions & Answers
AA court order may prevent payment of the current spouse’s survivor annuity if the court order entitles the former spouse. However, by electing the maximum survivor benefit for the current spouse, you will protect your current spouse’s rights with a contingent benefit in case the former spouse loses entitlement to the court-ordered benefits. If your spouse is under your FEHB plan on the date of your death, and a spousal survivor benefit is potentially payable to your spouse, then your surviving spouse would be allowed to maintain FEHB coverage.
If a retiree is unmarried at retirement and later remarries, they may elect a reduced annuity within two years after the marriage to provide a current spouse survivor annuity for the spouse. The reduction in the retiree’s monthly annuity is effective no earlier than the first of the month, beginning nine months after the date of marriage. If the retiree is married at retirement, the marriage ends, and they remarry, the retiree may elect a reduced annuity within two years of remarriage to provide a current spouse survivor annuity for the new spouse. In the case of a post-retirement survivor election, the retiree must agree to pay a deposit equal to the difference between the
amount of annuity paid and the amount of annuity that would have been paid if the survivor election had been in effect continuously since the time of retirement or since the date the reduction terminated, whichever is applicable. Interest is assessed against the amount owed at a rate of 6%, compounded annually. This deposit is made through a permanent actuarial reduction, which, in most cases, is less than 5% of the employee’s annuity.
Note: If the retiree remarries the same person they were married to at the time of retirement, that person had previously consented to an election of less than the maximum survivor annuity, the retiree may not later elect to provide a greater survivor annuity for that person upon remarriage.
For more information on survivor benefit elections, see Chapter 52 of the CSRS and FERS Handbook that can be found at https://www. opm.gov/retirement-center/publicationsforms/csrsfers-handbook/c052.pdf.
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.
TPre-Open Season Checklist and TSP Contribution Reminders
he annual federal insurance Open Season is November 10 to December 8, 2025, for employees, retirees, and other annuitants in 2026. This is a good time to review your health, dental, vision, and expenses eligible for flexible spending accounts’ (FSA) past, current, and anticipated needs.
FEDERAL EMPLOYEES
HEALTH BENEFITS (FEHB) & POSTAL SERVICE HEALTH BENEFITS (PSHB)
The Office of Personnel Management (OPM) submits letters to carriers annually conveying the primary areas of focus for the following plan year. The focus for 2026 is:
• Easing the administrative burden on enrollees;
• Preventive care;
• Fertility benefits;
• Mental health parity and network adequacy; and
• Prevention and treatment of obesity
To learn the details of this request, visit https://www. opm.gov/healthcare-insurance/ carriers/fehb/2025/2025-01.pdf
Executive orders have the following changes for all carriers in the 2026 plan year:
• Exclude coverage for pediatric transgender surgeries or hormone treatments for gender transition for covered individuals under age 19. OPM recognizes that there are some bona fide medical conditions, such as precocious puberty or therapy after a traumatic injury, where carriers may
lawfully cover hormone treatments for individuals under the age of 19.
• Carriers may propose to
THE FEHB AND PSHB PLAN 2025 BROCHURES, CONTAINING THE OFFICIAL DETAILS OF THE POLICY, WILL BE AVAILABLE NEAR OPEN SEASON.
The FEHB and PSHB plan 2025 brochures, containing the official details of the policy, will be available near Open Season.
MAKING FEHB OPEN SEASON ELECTIONS IF RETIRING AT THE END OF THE YEAR
Most agencies use an electronic enrollment system (e.g., Employee Express, MyPay, Employee Personal Page (EPP), etc.) to initiate or change FEHB plans. A few will ask for the SF 2809, Health Benefits Election Form.
cover, but are not required to cover, transgender surgeries or hormone treatments for gender transition.
• Appropriate corresponding reductions in Federal Employee Health Benefits (FEHB) and Postal Service Health Benefits (PSHB) premiums should be identified and included in benefit and rate proposals. For additional information on the executive orders, visit: https://www.opm.gov/
Employees who wish to make an FEHB election that will take effect after their retirement date must complete a paper version of the SF 2809, Health Benefits Election Form. Retiring employees should not submit an FEHB Open Season enrollment change through the agency’s electronic enrollment system. Your agency’s Human Resources Office will need to certify SF 2809 with the appropriate effective date and include it with your retirement application package.
Examples of a postretirement FEHB election:
• If an employee retires on November 30, 2025, then the Open Season election would be effective 01/01/2026.
BENEFITS RESOURCES
NARFE OFFERS MEMBERS a wide range of information on federal benefits. Visit www.narfe.org/federal-benefits-institute
• Retirements on January 1 through the day before the employee’s Open Season effective date for that calendar year will be effective on the annuity commencement date.
◊ If a Civil Service Retirement System (CSRS) employee voluntarily retires effective January 3, 2026, then the Open Season election would be effective 01/04/2026.
◊ If an employee involuntarily separates and retires under a discontinued service retirement effective January 10, 2026, then the Open Season election would be effective January 11, 2026, since the annuity will commence the day after separation.
FLEXIBLE SPENDING ACCOUNTS (FSA)
Employees can enroll in FSA accounts to help save on taxes for health and dependent care expenses. This is a good time to review and anticipate costs, including over-the-counter items, dental, orthodontic, vision, and prescription glasses, among others, that you or your dependents may need. For the eligible expenses, visit https://www.fsafeds.gov/ support/eligibleexpenses. You need to incur any FSA Healthcare expenses (if you have an account) before you leave, as this benefit does not continue after separation.
NOTE: Federal Employees’ Group Life Insurance (FEGLI) and Federal Long Term Care Insurance Program (FLTCIP) do not participate in the annual open season.
THRIFT SAVINGS PLAN (TSP) REMINDER FOR EMPLOYEES
Employees can contribute to the Internal Revenue Service’s annual limitation to their TSP account before they leave, which is currently $23,500 for regular contributions and $7,500 for “catch-up.” Beginning this year, for those aged 60, 61, 62, or 63, their “catch-up” limit is $11,250.
DOCUMENTS TO REVIEW
• Explanation of Benefits statements from the health care provider
• Receipts for health, dental, and/or vision expenses
• Receipts for any over-the-counter item may be claimed through FSA
LOOKING FORWARD
• What expenses do you expect for the new year?
◊ Orthodontic—consider the dental plan and FSA account
◊ Prescription glasses —consider a vision plan and/or an FSA account
◊ Major surgery?
FINANCIAL TIPS
• An FSA account saves about 30% of the cost of items as you set aside the funds before federal, state, Federal Insurance Contribution Act (FICA), or Medicare taxes are calculated and withheld
• Consult with a certified financial planner (CFP) and/or tax advisor for the big picture of your current and possible economic and tax situation
• Save extra funds you may need while your retirement application is being processed through human resources, payroll, and OPM, as the process may take several months.
KEY PHONE NUMBERS
• Your Human Resources or Shared Services and Payroll Provider
• OPM 1-888-767-6738
• TSP 1-877-968-3778
• FSA 1-877-372-3337
• FEDVIP/BENEFEDS (Dental and Vision) 1-877-888-3337
• Federal Long-Term Care 1-800-582-3337
—MICHELE BOLLIER IS A RETIREMENT AND BENEFITS SPECIALIST WITH RETIRE FEDERAL.
The
federal workforce is slightly smaller than it was 50 years ago, despite the U.S. population increasing by two-thirds during that time.
An unusual offer was presented to civilian federal employees on January 28, 2025, referred to as a “Fork in the Road.” Massive downsizing began with a memo offering employees the opportunity to leave their careers in federal service before their planned retirement date. Approximately 75,000 federal employees were expected to leave their positions in 2025 due to the offer, which was part of a broader plan by the Trump administration to reduce the size of the federal workforce.
According to research conducted by the Brookings Institution, since 1960, annual federal spending (in trillions) has increased exponentially, but the number of federal civilian workers has remained largely unchanged. Over time, the full and part-time federal workforce has shrunk as a percentage of the total U.S. population, from 1.1% in fiscal year 1967 to 0.6% in 2018. In absolute terms, the federal workforce is slightly smaller than it was 50 years ago, despite the U.S. population increasing by two-thirds during that time. Not only is the number of federal employees small compared to the population, but they also don’t cost very much. Compensation for federal employees cost $291 billion in 2019, or 6.6% of that year’s total spending. Reducing the number of federal employees by the same amount that the Clinton administration
did during its first term would require shrinking the federal workforce to fewer than 2.08 million workers by 2028. As of May 2025, excluding U.S. Postal Service workers, there were 2.363 million federal government workers. By May, the federal workforce had already totaled 46,800 separations.
Voluntary Separations
For many employees, the decision to separate from their federal career was voluntary through the “Deferred Resignation Program” (DRP) made available through the “Fork” memo. DRP 1.0 began on January 28 and closed at 7:20 p.m. ET on February 12. Employees were informed that if they left their federal career under this program, they would retain all pay and benefits through September 30 and were exempt from the mandatory return to in-person work for employees who had been assigned to permanent telework. Although it was a surprising offer that left employees with more questions than answers, the exemption to return to in-person work was a major motivator to accept the DRP, as many employees had relocated far from their original place of employment. Federal agencies faced challenges as workers were being ordered back to offices where there were shortages of desks, computer monitors, parking spaces
and even toilet paper. There was uncertainty about whether the mandate would allow employees to be reassigned to a building near their homes or require them to relocate across the country. According to a 2023 report from the Office of Personnel Management to Congress, 282 agencies reported a total of 1,055,593 teleworkers in 2023. Another part of the DRP offer allowed employees to leave earlier if they chose to accelerate their resignation for any reason.
Many employees who accepted the DRP were already eligible for retirement, and the paid administrative leave was sufficient reason to accelerate their plans to leave by September 30. Employees meeting the age and service requirements for early retirement were generally given Voluntary Early Retirement Authority (VERA) through an approved offer from their federal agency. Each agency had the discretion to offer the VERA, and to be eligible, employees must be at least
50 with 20 years of service or any age with 25 years of service by December 31, 2025.
After DRP 1.0 came DRP 2.0, a second round of the deferred resignation program, which began on April 7, 2025, and offered federal employees a similar chance to voluntarily resign from their positions with paid administrative leave through September 30, 2025. Several federal agencies offered Voluntary Separation Incentive Programs (VSIP), also known as buyouts, as part of workforce reduction efforts. These agencies included the Department of Education (ED), the Internal Revenue Service (IRS), the Social Security Administration (SSA), and the Department of Health and Human Services (HHS).
A VSIP provides a further incentive for employees to take advantage of VERA offers. According to OPM, when authorized, an agency may offer VSIP to employees who are in surplus positions or have skills that are no longer needed in the workforce who volunteer to separate by resignation, optional retirement, or by voluntary early retirement, if approved. By allowing employees to volunteer for separation from the government, agencies can
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After DRP 1.0 came DRP 2.0, a second round of the deferred resignation program, which began on April 7, 2025, and offered federal employees a similar chance to voluntarily resign from their positions with paid administrative leave through September 30, 2025. Several federal agencies offered Voluntary Separation Incentive Programs (VSIP), also known as buyouts, as part of
minimize or avoid involuntary separations or reductions-in-force (RIFs), which are costly and disruptive. Agencies such as the Department of Defense have been granted agency-specific VSIP authority and can offer an amount higher than the OPM-approved $25,000 maximum payment. These agencies are not required to seek OPM approval for their use of this option.
Employees accepting offers to retire early, along with tempting incentives designed to encourage employees to leave their careers that provide financial support, must take into account some important considerations that can make it difficult to retire from work fully:
1. There are no cost-of-living adjustments (COLAs) applied to the Federal Employee Retirement System (FERS) retirement benefit until after turning 62 for employees retiring under voluntary immediate retirement eligibility, as well as under VERA and DSR. However, employees who retire under the minimum age and service requirements for special provisions for law enforcement officers, firefighters, and other groups subject to mandatory retirement do not have a delayed cost-of-living adjustment (COLA). Over time, the FERS COLA will lose buying power due to the requirement that the adjustment be less than the increase in the Consumer Price Index when inflation exceeds 2%.
2. Social Security retirement isn’t payable until age 62, and the FERS retirement supplement, meant
to be a temporary substitute for Social Security, doesn’t begin until the retiree reaches their minimum retirement age (MRA), which is age 57 for individuals born in 1970 or later.
3. While earlier versions of H.R. 1, the “One Big Beautiful Bill Act,” may have impacted retirement decisions, the final version of the bill did not include any adjustments to federal retirement benefits.
4. By retiring at an age where you may have decades of life ahead, your retirement savings may not be enough to supplement your FERS retirement and Social Security over your remaining lifetime. With less service and less time for retirement savings to compound, early retirees may need to explore options for a second career. This can be particularly challenging when numerous other displaced federal workers are competing for the available job openings.
Involuntary Separations
Recently, it was announced that reductions in the size of the federal workforce will continue into the 2026 fiscal year. According to reports, the Trump administration plans to eliminate more than 107,000 jobs across the government, but the net impact will be offset by targeted hiring at specific agencies and offices. The ED will shed the most employees, followed by OPM, the General Services Administration (GSA), the Small Business Administration (SBA) and the National Aeronautics and Space Administration (NASA). In May, NARFE’s advocacy team reported that, thanks to an order from Senior District Judge Susan Illston of the U.S. Court of Northern California, federal agencies were required to pause their RIF notices. Judge Illston stated that “the president has neither constitutional nor, at this time, statutory authority to reorganize the executive branch,” and that Congress has not granted authority to OPM or the Office of Management and Budget (OMB) to conduct RIFs and other mass terminations. However, the Supreme Court stayed the judge’s order, allowing RIFs to move forward, even as agency- and individualspecific RIF actions may be subject to additional legal challenge.
To qualify for a Discontinued Service Retirement (DSR), your separation is considered involuntary if:
• You are separated for an involuntary action (such as during a RIF, job abolishment, or reassignment to a position in a different commuting area), and
• You have not declined a reasonable offer of another position at or within two grades below your present position in the same local commuting area.
Once the RIF notices are sent, employees may be eligible for severance pay or early retirement under the Discontinued Service Retirement (DSR) program. To be eligible for severance pay, employees must not have refused a reasonable offer for another position within the same agency, must have been employed for at least 12 continuous months immediately before the separation, and cannot be eligible for an immediate annuity from a federal civilian retirement system or the uniformed services. To qualify for DSR, your separation is considered involuntary if:
• You are separated for an involuntary action (such as during a RIF, job abolishment, or reassignment to a position in a different commuting area), and
• You have not declined a reasonable offer of another position at or within two grades below your present position in the same local commuting area.
The age and service requirements to qualify for a DSR are the same as those for VERA: age 50 and 20 years of total creditable service, or any age and 25 years.
Reacting With Fear
According to an article published earlier this year in the American Psychological Association, Dr. Randi Torstenson, a clinical psychologist in New York who
The number of retirements received by OPM in May 2025 was almost 225% higher than in May 2024. This represented an increase of 8,297 more applications arriving at OPM, or 15,048 new applications in May 2025 compared to 6,751 in May 2024.
has provided counseling to federal employees, recommends making space to express competing emotions such as fear, rage, distress, and grief, particularly for those who are concerned about the trajectory of their careers. Some federal workers who were suddenly let go were asked to return to work since judges ruled their firings were illegal. Others struggled to find new employment in an already competitive job market. Torstenson encouraged the use of coping measures, such as maintaining good sleep hygiene, exercising, resting, and meditating; increasing pleasurable activities or hobbies; and relying on family and friends for support.
The number of retirements received by OPM in May 2025 was almost 225% higher than in May 2024. This represented an increase of 8,297 more applications arriving at OPM, or 15,048 new applications in May 2025 compared to 6,751 in May 2024.
The reaction to all this upheaval can be likened to someone in a movie theater yelling “fire,” and the
patrons not waiting for instructions or to determine if the threat is real or a hoax. Forgetting they are in the middle of watching one of the greatest movies of all time, they start running for the exits. Stress, fear, and anger trigger a cascade of physiological changes, known as the "fight-or-flight" response, in which the brain alerts the autonomic nervous system to release adrenaline and cortisol, thereby putting the body on high alert. The heart beats faster, increasing oxygen flow to major muscle groups. Our hearing sharpens, pain perception reduces, pupils dilate, and blood thickens, all simultaneously narrowing our perception and attention, so that our focus tightens and remains acutely on the threat.
Fear is our brain’s response to perceived threats, whether they are real or imaginary. This feeling is temporary and often subsides once the danger has passed. As opportunities to leave federal service and possibly face involuntary separation continue, the initial shock has subsided, and many who remain employed continue to be on high
alert, second-guessing their decisions. The prospect of having less money in retirement, so that the golden years are less than previously imagined, can be a strong driver of decisions affecting retirement security.
I recently spoke with financial planner, Wes Battle, CFP®, ChFEBC℠, AIF®, RICP®, who shared that, in his opinion, federal workers are making thoughtful decisions about the “Fork in the Road” and DRP offerings.
“The folks I’ve worked with are focused on the right ideas: understanding the rules to keep the most of their benefits and how to generate retirement income,” said Battle. He agrees that while this has been a chaotic time, there have been positive conversations in which the feds are learning that taking these offers does not mean they lose their benefits, but only that they will be different from what was projected. Battle shared some of the top tips his firm has used to help feds implement and prepare for sudden retirement:
• Know Your Dollars In:
◦ Have a plan for delayed pension payments. Recently retired federal employees will receive approximately 70% of their calculated pension while their claim is being finalized at OPM; plan for the income difference.
◦ Know that Thrift Savings Plan (TSP) funds are not accessible for 30 days after retirement, so you’ll want to plan withdrawals accordingly.
◦ Having an appropriate amount of cash available for quick access. That means savings and checking accounts, money markets, and short-term certificates of deposit. Maybe other investment tools.
• Know Your Dollars Out:
◦ Prioritize needs over wants. Look at reducing expenses. This could include reducing the budget to just necessities, but it could also mean paying down debt.
◦ This may sound counterintuitive to the point above, but if you were able to pay off a debt with a hefty monthly outlay, it could enhance your situation by having a much lower income need in the future.
• Know Yourself
◦ What are you going to fill your time with? What brings you joy? Try to think of what you enjoy, not what you are told you should.
◦ Are you confident in tracking your finances, or would working with a professional give you peace of mind? Sometimes, having a trusted expert to guide the process can make all the difference.
What is Retirement?
“The folks I’ve worked with are focused on the right ideas: understanding the rules to keep the most of their benefits and how to generate retirement income.”
— Wes Battle, financial planner and NARFE Federal Benefits Institute expert.
Would you associate the words “freedom,” “fulfillment,” “enjoyment,” “opportunity,” and “personal growth” with retirement? Or would they include “health decline,” financial insecurity,” “boredom,” “isolation,” “dependent on others,” or “unimportant?”
According to the “2024 Retiree Life in the PostPandemic Economy, 24th Annual Transamerica Retirement Survey,” retirees view retirement enthusiastically. More than four in five retirees (86%) cite positive word associations with the word “retirement,” while 37% cite negative word associations. According to the survey, the median retirement age is 62 (for federal workers, it is 61.8), and most retirees considered themselves fully retired and no longer working before the age of 65. Nearly six
Wes Battle’s top tips when preparing for a sudden retirement
are:
• Know Your Dollars In
• Know Your Dollars Out
• Know Yourself
while only 36% retired as planned, and 6% retired later than they had intended.
Many retired due to employment reasons (43%), such as job loss (16%), organizational changes (16%), job dissatisfaction (14%), and retirement buyouts (9%). Alarmingly, only 21% retired due to their financial ability to do so, including having saved enough money (11%), taken a retirement buyout (9%), and received a financial windfall (3%). When asked how their transition to retirement occurred, many retirees immediately stopped working (42%), either once they reached a specific age (33%) or once they had saved a particular amount of money (9%). One in five retirees (22%) continued working as long as possible until they were no longer able to work. Retirees’ circumstances surrounding when and how they retired exemplify common risks: health issues, employment issues, and a lack of financial preparedness.
All in all, retiring with short notice is much easier for those who need to alter a long-range plan that is already in place.
This year has caused a sudden change of course for many federal careers. For employees who are in the midcareer stage, they have learned critical lessons, realizing that there are no “guaranteed” benefits, whether your career choice is in the private or federal sector. Earlycareer employees may have a greater understanding of why planning for retirement is something that begins on the first day of the job. Concepts of investing for the future and saving for a rainy day now have real-life experiences and examples to illustrate the importance of living within your means by avoiding unnecessary debt and prioritizing “needs” over “wants.”
Retirement planning, like life planning, needs to remain flexible to withstand and react to the many “forks in the road” that may lie ahead.
—TAMMY FLANAGAN IS A FEDERAL RETIREMENT EXPERT WITH RETIRE FEDERAL
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USES: The Inogen Portable Oxygen Concentrator provides a high concentration of supplemental oxygen to patients requiring respiratory therapy on a prescriptive basis. It may be used in home, institution, vehicle, and various mobile environments. DO NOT USE IF: This device is not intended to be used in any way other than described in the indications for use. Do not use in parallel or series with other oxygen concentrators or oxygen therapy devices. This device is to be used as an oxygen supplement and is not intended to be life sustaining or life supporting. ONLY use this product if the patient is capable of spontaneous breath, able to inhale and exhale without the use of a machine. The conserving, or pulse dose, oxygen delivery technique used by this device is contraindicated in persons whose breathing during normal resting would be unable to trigger the device. Proper device triggering, setup and operation must be confirmed by an experienced clinician or other respiratory professional. Not for pediatric use. Not for use by tracheotomized patients. WARNINGS: The device produces enriched oxygen gas, which accelerates combustion. Do not allow smoking or open flames within 2m (6.56ft) of this device while in use. If you feel ill or uncomfortable, or if the concentrator does not signal an oxygen pulse and you are unable to hear and/or feel the oxygen pulse, consult your equipment provider and/or your physician immediately. If you are unable to communicate discomfort, you may require additional monitoring and or a distributed alarm system to convey the information about the discomfort and or the medical urgency to your responsible caregiver to avoid harm. Use only spare parts recommended by the manufacturer to ensure proper function and to avoid the risk of fire and burns. To avoid danger of choking or strangulation hazard, keep cords away from children and pets. TALK TO YOUR HEALTH CARE PROVIDER: The oxygen flow setting must be determined and recorded for each patient individually by the prescriber, including the configuration of the device, its parts, and the accessories. It is the responsibility of the patient to periodically reassess the setting(s) of the therapy for effectiveness. The proper placement and positioning of the prongs of the nasal cannula in the nose is critical for oxygen to be delivered.
Electric Electric Vehicle Vehicle JOINING THE
BY EVERETT A. CHASEN
Millions of Americans now own or lease electric-powered vehicles. Are you ready to buy yours?
Charge Charge
The rise of electric vehicles (EVs) has sparked a widespread debate about their benefits and drawbacks. About 1.7 million EVs were sold in the United States in 2024. But is buying an EV right for you?
3.3 million electric vehicles were on the road in the United States in 2023.
30 to 42 million EVs could be on U.S. roads by 2030.
As of today, there are more than 120 makes and models of electric cars available.
“EVs are more fun to drive (than gas-powered cars), and they’re quieter,” said John Higham, a member of the board of directors of the Electric Vehicle Association. Higham cited several advantages of owning an EV, including lower costs for maintenance, refueling, and operation.
“And it’s a happy coincidence that there’s an environmental advantage (to owning one),” he added.
According to the U.S. Department of Energy (DOE), an EV is “a vehicle that can be powered by an electric motor that draws electricity from a battery and is capable of being charged from an external source,” like a wall outlet or special charging equipment.
Some EVs, called plug-in hybrids, can be powered by both an electric motor that requires an external source to charge and a traditional internal combustion (gas-powered) engine. Another type of hybrid also uses both an internal combustion engine and an electric motor for propulsion, but cannot be plugged into external power sources to charge the battery.
A Brief History of EVs
Powering vehicles through electricity is not a new concept. The DOE says inventors began “toying with the concept of a battery-powered vehicle” in the early part of the nineteenth century. In 1890, William Morrison of Des Moines, Iowa, constructed a six-passenger electricpowered wagon capable of reaching a top speed of 14 miles per hour.
By 1900, electric cars accounted for a third of all vehicles on the road. Such cars were desirable to women because turning a crank to start an internal combustion engine was something many women of the time didn’t want to do, or be seen doing. Heavy batteries and limited range, however, prevented early EVs from gaining widespread popularity.
In 1912, the invention of the electric starter eliminated the need for a hand crank, making internal combustion engines more attractive. Henry Ford’s mass-produced Model T made gas-powered vehicles significantly cheaper than electric cars, and the discovery of crude oil in Texas made gas cheap and readily available throughout the nation, even in rural areas. Electric vehicles all but disappeared by the mid-1930s.
In the 1980s, “that all started to change when lithium-ion batteries (rechargeable batteries that use lithium ions to store and release energy) became a viable, economic option for EVs,” said Higham.
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NARFE’s Dues Withholding Program
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In 1996, General Motors began selling the EV1, a car designed from the ground up to be an electric vehicle. It had a range of 80 miles between charges and could accelerate from 0 to 50 miles per hour in seven seconds. High production costs rendered the car commercially unviable, and the model was discontinued in 2001.
In August 1997, the Toyota Prius became the world’s first mass-produced hybrid electric vehicle. In 2010, the Chevy Volt became the first commercially available plug-in hybrid, and in that same year, the Nissan Leaf was introduced. Like the EV1, it was a fully electric car.
As of today, there are more than 120 makes and models of electric cars available, “with many more coming soon,” according to the California Air Resources Board. According to Edmunds.com, 3.3 million electric vehicles were on the road in the United States at the end of 2023. Edmunds believes that there could be 30 to 42 million EVs on U.S. roads by 2030.
Why Buy an EV?
Higham finds many things to like about today’s EVs.
“The quiet acceleration, I think, is what makes owning an EV pleasurable,” he said. “I think people will be shocked at how peaceful it is to drive an electric car on a freeway, because you aren’t confronted with all the noise and vibration you’ve always associated with highway driving. I also like that they’re usually loaded with technology features. When I turn on my blinker, I get a camera view on my dashboard of my blind spot. And I can see what’s happening when I’m backing into or pulling into a parking spot, not just in my garage.”
Maintenance costs on EVs are, in general, lower than those of gas-powered vehicles.
“The only typical maintenance on an EV is to add windshield wiper fluid and rotate the tires,” he said.
Brakes typically last longer on electric cars because of regenerative braking. This system captures
energy when an EV slows down or goes downhill and uses that energy to recharge the battery. In many EVs, when the driver lifts their foot entirely off the pedal, the car slows and stops as if the brake had been pressed firmly.
“For most driving, a typical driver doesn’t need to touch the brakes,” Higham said. “The only time you really hit the brakes is for unexpected traffic light changes, or when someone pulls out in front of you.”
Higham believes the biggest advantage of owning an EV is its lower operating cost.
“Electric prices are usually far more stable than gas prices,” he said. “Gas prices can go up and down according to the whims of politics and geopolitical upheavals, but all the electricity you use in your home is generated locally.”
Also, electricity prices are not usually set in a competitive, open market, but are generally regulated by various government agencies.
Finally, by charging a car at home every night, “you can wake up every morning to a ‘full tank.’”
“I liken it to people who move into their first home or apartment, in which they have a built-in washer and dryer in their home,” said Higham. “(Before that) you were going to the laundromat and paying a premium to use washers and dryers somewhere else. You had to go somewhere, and it was a task you had to do.”
That’s like putting gas in your car. Filling up is a task you have to do, and people are doing it.
“But charging your car at home is so convenient,” he added. “Think of it like plugging in your phone at night before going to bed, and it’s fully charged and ready to go in the morning, and you can take it anywhere you
“The quiet acceleration, I think, is what makes owning an EV pleasurable. I think people will be shocked at how peaceful it is to drive an electric car on a freeway, because you aren’t confronted with all the noise and vibration you’ve always associated with highway driving.”
— John Higham, a member of the board of directors of the Electric Vehicle Association.
Other issues to think about
want. People think of charging as a burden, but it’s liberating.”
However, Higham warns that people who can’t charge at home because they don’t own their own house or live in an apartment, or don’t have a garage or driveway attached to their residence, don’t have that advantage.
“If you don’t have a place to charge at home, an EV may not be your best option,” he said.
Besides determining whether you can charge your car at home, Higham cited several other issues potential buyers should consider before buying an EV or a hybrid. Range is foremost among them.
“If you want to do long road trips, you need a car that has good range (the distance it can travel on a full charge of its battery) and that charges fast,” said Higham, citing the Chevy Bolt as an example. “I would
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“It’s tough to pinpoint exactly when they might reach parity with internal combustion engine cars, but it’s helpful to recall that hybrid electric vehicles, which have only been around for about 25 years and have more moving parts than traditional gas-only cars, are now just as reliable as they are.”
— Steven Elek
recommend a Bolt to just about anyone who wants a good second car, but I would not recommend it to anyone who wants to do a road trip in an EV. (The car) has good range, but it does not charge fast.”
He offered an unusual rule of thumb to help determine whether a particular model is suitable for taking on road trips.
“At some point in every road trip, you’re going to want to get out of the car, stretch your legs, and go to the bathroom,” Higham said. “So, you want to make sure your EV's range exceeds your bladder’s range. Some EVs meet that test, and some don’t.”
He added that you’re going to want an EV that charges up as quickly as it takes you to use the bathroom, stretch your legs, and buy a soda.
“By the time you get back to your car, you should have enough charge to continue on your journey,” Higham said. “There are definitely cars on the road that allow you to do this—and they’re not terribly expensive.”
Higham believes any “price premium” for purchasing EVs has gotten smaller over the years, “and it may be at the point where it’s approaching zero. In the used EV market, there are some excellent opportunities. The costs are definitely coming down.”
He does not factor in tax credits that are available in certain localities for specific models, as political situations change rapidly, and many EVs are not eligible to receive them.
“While a tax credit is an advantage for certain people and certain models, I wouldn’t call it an advantage for an EV per se,” he said.
Are EVs Reliable?
A question potential buyers frequently ask about EVs is whether they are reliable. Consumer Reports (CR), a nonprofit research, testing, and advocacy organization, annually surveys the owners of about 300,000 vehicles to obtain data on 20 potential problem areas in the cars they own, including engines, transmissions, electronic motors, leaks, and infotainment systems.
According to Steven Elek, CR’s lead automotive data analyst, while EVs score 42% worse than conventional engines in terms of reliability, “new car reliability tends to improve with each year of the production cycle, and EVs are no different. But it does depend on the model, so you want to check the reliability history of any EV you’re considering.” CR offers that information at CR.org/cars
“We always predicted EVs would become more reliable over time as manufacturers worked out the kinks of this new technology, and we expect more progress in the years ahead,” Elek said. “It’s tough to pinpoint exactly when they might reach parity with internal combustion engine cars, but it’s helpful to recall that hybrid electric vehicles, which have only been around for about 25 years and have more moving
parts than traditional gas-only cars, are now just as reliable as they are.”
Some EVs by established automakers have problems with their electronic powertrains and charging, while others by companies new to the auto industry have build-quality issues, such as body hardware, paint, and trim. However, “we’re seeing evidence that
manufacturers are making progress on solving those issues,” according to Elek.
“For those who are considering buying an EV, the good news is that there are some reliable models to choose from,” he said.
Final thoughts
“One of the advantages of a plug-in hybrid (over a fully electric vehicle) is that it removes the requirement of needing to find a charger if you’re on a road trip,” Higham said. “My mother-in-law wanted to buy an EV, and I advised her to get a plug-in hybrid, because she makes long trips to see her grandchildren. I just didn’t think charging at a charger was going to be her cup of tea. So, she gets her local miles from plugging in at home. She goes to the grocery store and all her daily stuff is done using the electric system, but when she goes on a road trip, she uses gas.”
The disadvantage of any hybrid car is that they have two drivetrains, according to Higham. Unlike fully electric vehicles, hybrid owners need to change their oil and filters, as well as maintain their car’s transmission. CR’s Elek believes that while nonplug-in hybrid vehicles are the most reliable of cars with electronic powertrains, “plug-in hybrid electric vehicles still have some growing pains to overcome, and are less reliable than EVs on average.”
In the future, Higham expects sodium-ion batteries to replace lithium-ion batteries on most
According to Steven Elek, Consumer Reports’ lead automotive data analyst, while EVs score 42% worse than conventional engines in terms of reliability, “new car reliability tends to improve with each year of the production cycle, and EVs are no different. But it does depend on the model, so you want to check the reliability history of any EV you’re considering.” CR offers that information at CR.org/cars.
vehicles. Sodium is more abundant and cheaper than lithium, making these batteries more cost-effective. They are also more environmentally friendly to produce and recycle.
Some automakers are also developing solid-state batteries, which use a solid electrolyte instead of a liquid one to conduct ions within the battery. These are expected to be safer, more durable, and have a higher energy density than lithium-ion batteries.
“Car shoppers should do their due diligence, weigh the pros and cons of each type (of vehicle) and determine which is right for their lifestyle, and, of course, their budget,” Elek said.
CR offers tools, data, and insights on its website to help you make informed choices.
“There’s never been a better time to get an EV than right now,” added Higham.
—EVERETT A. CHASEN IS A FREELANCE REPORTER BASED IN THE GREATER WASHINGTON, D.C. AREA.
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.
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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!
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LUnderstanding the Limitations of POD and TOD Designations
ast month, we examined how payable-on-death (POD) and transfer-on-death (TOD) designations can enable federal employees to extend probate-avoiding benefits to personal accounts outside their Thrift Savings Plan (TSP) and other retirement plans. While these designations work well for bank and investment accounts, what about the most valuable asset for many, the home?
Many states now allow TOD deeds for real estate, which operate on similar principles to POD and TOD accounts. TOD deeds allow you to name beneficiaries who will automatically receive ownership of your real estate upon your death, bypassing probate entirely. Like POD and TOD accounts, you maintain complete control during your lifetime - you can sell the property, refinance, or revoke the deed at any time.
TOD deeds have increased in popularity, and currently, over half of the states, plus the District of Columbia, allow some form of TOD deed. For federal employees who own properties in multiple states, TOD deeds can be particularly valuable for ensuring that real estate transfers smoothly to beneficiaries without the need for multiple probate proceedings. However, rules vary significantly by state, so you’ll need to research the specific requirements for each property’s location.
While TOD deeds and POD/ TOD accounts offer a simple and inexpensive solution for avoiding probate, they come with important limitations that can create unintended consequences if not properly understood.
For example, these designations only take effect upon death—they provide no assistance during incapacity. If you become unable to manage your affairs, your named beneficiaries have no rights to access accounts or property until your death. This means that if funds from POD and TOD accounts are needed for medical care or TOD property needs to be sold to cover living expenses during incapacity, someone may need to petition the court for conservatorship—exactly the type of court involvement these designations are meant to avoid. At a minimum, a well-drafted durable power of attorney should be in place to avoid this issue, but a revocable trust with a successor trustee may address this gap more effectively. This is where an estate planning attorney can offer invaluable advice.
Additionally, POD, TOD, and TOD deed transfers can also create serious estate liquidity problems. When assets transfer directly to beneficiaries outside of probate, they’re no longer available to pay your final debts, taxes, funeral expenses, or administrative costs. Your executor may face the uncomfortable situation of
asking beneficiaries to contribute funds or property they’ve already received, or potentially forcing the sale of remaining probate assets to cover these costs.
POD and TOD designations offer no protection from beneficiaries’ creditors, lawsuits, or poor spending habits. If your adult child receives an inheritance through a POD and TOD designation and subsequently faces a lawsuit, divorce, or simply makes poor financial decisions, those assets are completely vulnerable. Properly structured trusts can include provisions that protect inherited assets from beneficiaries’ creditors, divorce proceedings, and poor financial decisions while still providing income to beneficiaries.
The apparent simplicity of these designations can be deceptive. While they are straightforward to establish, they can cause unintended consequences if not properly coordinated with your overall estate plan. Since these designations override your will, outdated beneficiary forms can create distributions that contradict your current wishes. If you update your will but forget to update POD/TOD beneficiaries or revoke an old TOD deed, you could inadvertently disinherit intended heirs or create dramatically unequal distributions among family members.
Furthermore, direct distributions to certain beneficiaries can create additional complications. For example, while there’s no issue naming minors as beneficiaries,
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doing so may require establishing a Uniform Transfer to Minors’ Accounts (UTMA) or courtappointed guardianships. For beneficiaries receiving government benefits, such as Supplemental Security Income (SSI) or Medicaid, immediate receipt of an inheritance could jeopardize their eligibility.
Finally, financial institutions don’t all operate under the same rules for POD/TOD designations. Some banks limit the number of beneficiaries you can name, while others don’t allow contingent beneficiaries or per stirpes distributions. Before establishing these designations, review each institution’s policies and consider moving accounts if their rules don’t align with your estate planning goals.
Understanding when POD and TOD designations are effective versus when more sophisticated planning is necessary is key. These designations are simple and effective tools for
straightforward situations, but more complex circumstances often require different strategies. It’s important to consult an experienced estate planning attorney when creating your estate plan. They can help define your objectives and recommend the right combination of tools to create a coordinated estate plan that works seamlessly with your TSP and other federal benefits.
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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TOver 7 Million Americans Live With Alzheimer’s Disease
he Alzheimer’s Association recently released its 2025 Facts and Figures Report , highlighting that over seven million Americans are living with Alzheimer’s. This is a significant development for patients and their caregivers, as it can help those suffering from the disease live longer and potentially lead more independent lives.
Here are some other figures from the report:
• 1 in 3 older adults dies with Alzheimer’s or another dementia.
• Alzheimer’s kills more people than breast cancer and prostate cancer combined.
• In 2025, Alzheimer’s and other dementias will cost the nation $384 billion. By 2050, these costs could rise to nearly $1 trillion.
• Nearly 12 million Americans provide unpaid care for people with Alzheimer’s or other dementias.
• 4 in 5 Americans would want to know if they had Alzheimer’s before symptoms appear or affect daily activities.
• 92% of Americans would want a medication to slow the progression of Alzheimer’s following a diagnosis.
Our primary concern remains preventing the Centers for Medicare and Medicaid Services (CMS) from blocking Food and Drug Administration (FDA) approval of helpful preventative drugs. This is especially important, as the new data in this report highlights the proclivity of certain medications to target amyloid plaques specifically. This protein appears
to mainly affect the memory and cognitive function of those with Alzheimer’s disease.
As I said before, this is crucial to a family member or a caregiver who is taking care of someone with Alzheimer’s disease or dementia with no pay. It is also crucial to extend the lives of those suffering from this disease. It is also about more people being able to live with a better quality of life everywhere.
Also, as the disease continues to rise, there are nearly 12 million family members and friends who are providing unpaid care for those living with Alzheimer’s or another dementia related condition. These unpaid caregivers provide 19.2 billion or more hours of care, valued at around $413 billion each year, which surpasses the previously reported totals.
Thank you, NARFE members, for all of your continued support, along with your monthly contributions toward Alzheimer’s research. We also know that these donations are helping those who are suffering from Alzheimer’s and dementia-related diseases.
Caregivers also need to prioritize their own physical and emotional health. At the same time, they are caregiving
for a person who is living with Alzheimer’s or another dementia. Please do not neglect yourself; ensure you are also getting enough physical exercise while maintaining your emotional well-being.
I believe that one day, shortly, a cure will be found, and as a result, we will have our first survivor. Continue to eat right, exercise our minds, bodies, and souls, so that our lives can become richer and better able to help ourselves, our families, and many others feel better and be healthier.
We’re preparing our NARFE chapter teams for the national Walk to End Alzheimer’s in October. Please continue to encourage members to stay active and monitor their vascular health. Also, please invite everybody you know to join your walk teams, donate, and share this information with your family, friends, church members, your doctors, and anyone else.
Please don’t forget to reach out to your congressional leaders through letters, calls, cards and social media. We need their support to help us find a cure by passing the proper legislation.
For more information about Alzheimer’s disease and dementia, please get in touch with the Alzheimer’s Association at www.alz.org or call the 24-hour helpline at 800-272-3900.
We can do this together!
OLIVIA A. WILLIAMS IS CHAIR OF THE NARFE-ALZHEIMER’S NATIONAL COMMITTEE. EMAIL: OEASHF3@ GMAIL.COM .
THIS COLUMN APPEARS QUARTERLY.
to NARFE programs Donate
Donate to NARFE
MAKE CHECK PAYABLE TO: NARFE
PLEASE MAIL COUPON AND CHECK TO:
NARFE / 606 N. Washington St. / Alexandria, VA 22314 or donate online at www.narfe.org/ donate
With NARFE’s thanks, you will receive a NARFE Photo Calendar
NARFE safeguards the earned pay and benefits of America’s five million federal workers, retirees, their spouses, and survivors. NARFE is YOUR legislative voice and tireless advocate.
NARFE contributions are NOT tax-deductible.
Enclosed is my NARFE Contribution: $ __________________ All donations go to the NARFE General Fund to support NARFE Programs and operations.
NARFE members contributed for Alzheimer’s research: $17 Million Fund $16,705,500.27
*Total as of June 30, 2025 All contributions go directly to Alzheimer’s research, with the exception of funds given to the Walk to End Alzheimer’s or The Longest Day.
If you have any questions, write to:
National Committee Chair
Olivia Williams PO Box 2175 Columbia, SC 29202
OR E MAIL: oeashf3@gmail.com
MAKE CHECK PAYABLE TO:
NARFE-Alzheimer’s Research (w rite your chapter number on memo line)
PLEASE MAIL COUPON AND CHECK TO:
Alzheimer’s A ssociation 225 N. Michigan Ave., 17th Floor Chicago, I L 60 601-7633
Your charitable contribution is tax-deductible to the fullest extent allowed by law.
Enclosed is my NARFE-Alzheimer’s contribution: $ Every cent that is contributed is used for research.
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.
MAKE CHECK PAYABLE TO: NARFE-FEEA Fund
PLEASE MAIL COUPON AND CHECK TO: FEEA
1641 Prince St. Alexandria, VA 22314
Your charitable contribution is tax-deductible to the fullest extent allowed by law.
Enclosed is my NARFE-FEEA Fund Contribution: $ ________
Name:
Address:
City:
State: ZIP:
Email:
NARFE Membership Sending Renewal Emails
Did you receive an urgent email from NARFE reminding you that your membership has expired or will expire soon? Fear not! All you have to do is sign into your account and renew your membership.
The membership department at NARFE is keeping pace by notifying every individual member with a personalized reminder that their dues will lapse as their expiration date approaches. If your expiration date is November 30, 2025, or earlier, it is time to renew! Look on the back of this magazine to check your date.
Renewing your NARFE membership is the best way to protect and maximize your federal retirement benefits.
NARFE is the only organization solely dedicated to protecting and preserving the benefits of all federal workers and annuitants. As a NARFE member, you have a dedicated professional legislative team working to protect and preserve your earned benefits on Capitol Hill and with the administration. You also have access to many valuable resources, such as:
• NARFE Magazine
• NewsLine, our weekly e-newsletter, with the latest news and information about the issues that affect you.
• Daily Clips, our daily email snapshot of the news you need to know to start your day
RENEWING YOUR NARFE MEMBERSHIP IS THE BEST WAY TO PROTECT YOUR FEDERAL RETIREMENT BENEFITS AND MAXIMIZE YOUR BENEFITS.
• Personalized answers to your federal benefits questions from our experts.
• NARFE Perks discounts on travel, legal, and security services, and much more!
RENEWING
YOUR MEMBERSHIP IS EASY!
• Renew online at https:// members.narfe.org/ Membership/Join-NARFE . Go to “My Account” and click on “My Invoices.” While you’re logged in, sign up for AutoPay and never receive another mailed or emailed reminder again! Simply click on “My Account,”
“My Settings” and then “My AutoPay Account.”
• Renew by phone by calling 800-456-8410 and select option 1, Monday through Friday from 8 a.m. to 5 p.m. ET. Tell them your member number.
Want to find another way to avoid receiving these renewal reminders each year? If you’re retired and want to save on your annual membership, flip to page 35 to learn more about dues withholding and have your membership deducted monthly from your annuity. Simply complete the form and mail it back to 606 N Washington St, Alexandria, VA 22314.
Numbers matter. Our voice is loudest when we all stand together.
Please don’t delay! Your NARFE benefits are at risk. Renew today to keep receiving your issues of NARFE Magazine, guidance when benefits change, access to federal benefits specialists who can help you with your specific questions, and much more.
Thank you for your continued support!
—BY NORA MACDONALD, DIRECTOR, MEMBER ENGAGEMENT
NARFE Staff Joins FOX5DC for TV Segment in Alexandria
NARFE Staff Vice President of Policy and Programs John Hatton and NARFE Senior Director of Member Engagement Nora MacDonald joined FOX5DC on Friday, June 27 for their recurring “Zip Trip” segment in John Carlyle Square for fun trivia about the city of Alexandria.
Several NARFE headquarters staff members came out to help share our message with the public. It was a strong team effort that contributed to expanding our visibility!
Watch the fun video of John and Nora competing in Alexandria trivia at https://www.youtube.com/ watch?v=mfwDtEaoeFM, and view photos of NARFE staff setting up our booth early Friday morning in John
Carlyle Square, which included meeting Alexandria Mayor Alyia Gaskins, on our Facebook page at https://www.facebook. com/NARFEHQ.
Thank you to Creative Services Manager Beth Bedard, NARFE Senior Manager of Membership Data Natcole ReidMcCorkle, Member Engagement
Representatives Terri Badie and DeWayne Ross, Social Media and Marketing Manager Destiny Harkless, Member Engagement Representative - Recruiter Support Kyeba Jackman, Membership Data Lead Denise Curry and Federal Benefits Institute Manager Ellie Dorsey especially for getting there early with our rally signs and promoting NARFE to make this event a success!
—BY
MATT SANDERSON, SENIOR CONTENT MANAGER, COMMUNICATIONS
CONFERENCES AND MEETINGS
Information as of July 11, 2025.
REGION X: conference October 20-23, Staybridge Suites, Pigeon Forge, TN. Please contact Region X Vice President Robert Allen, rvp10@narfe.org, for more information.
ALASKA: virtual federation annual meeting Sept. 27. Please contact Federation Secretary David Epstein, dave1013@gmail.com, for more information.
ILLINOIS: annual federation conference and election Sept. 16-17, Thelma Keller Convention Center, Holiday Inn, Effingham, IL 62401. Please contact Corresponding Secretary Linda Glasgow, glasgowljg43@aol.com, or visit www.narfe.org/il/ for more information.
INDIANA: annual federation conference, September 24-25, 2025, Hilton Garder Inn 5255 Noggle Way Indianapolis, IN 46237. Please
contact Federation President John Triplett, email johntriplettnarfe@gmail.com.
IOWA: conference and election September 16-17, Meskawki Casino & Conference Center, Tama, Iowa. Please contact Federation President Droman Otte at 515-971-0290 or email dormanotte@gmail.com
NEW HAMPSHIRE: 54th annual conference, October 29, 2025, Governor’s Inn, 78 Wakefield St, Rochester NH 03867. Please contact Joseph J. Kowalik III, 603485-2082 or email jjkowalik3@gmail.com.
REGION III REGIONAL TRAINING CONFERENCE: conference October 10-12, Saint Simons Island, GA. Please contact Region Vice President Lynn Harper, 478-951-3260 or email lynnlarry79@outlook.com
WASHINGTON STATE ANNUAL MEETING October 28, 2025, virtual. More information to come.
For the complete list, visit https://www.narfe. org/2025-chapter-conferences-and-meetings/
Rise Up Federal Workers Legal Defense Network Launches
Acoalition of good government organizations and federal unions has launched an initiative called “Rise Up,”
a network of thousands of lawyers who will offer free legal support to employees impacted by the Trump administration’s recent actions to overhaul the
FEEA Launches Layoff Loans
Even with careful planning, federal employees facing recent layoffs can find themselves in a vulnerable financial position. Unplanned, out-of-pocket expenses can lead to significant hardship, potentially forcing them to rely on high-interest loans, default on
debts, or even consider personal bankruptcy. While FEEA can’t replace lost income on a longterm basis, we can offer eligible federal employees confidential, no-fee, no-interest loans to help temporarily with basic needs. Since 1986, FEEA has provided over 13,000 no-fee, no-interest
federal workforce. For more information on Rise Up: Federal Workers Legal Defense Network, visit workerslegaldefense.org. Federal workers looking for legal support can begin the process at https://workerslegaldefense. org/federal-workers.
loans to help feds make ends meet during hardships, and we’re here to support those recently affected by layoffs. For more information, visit https:// feea.org/our-programs/layoffloans/ —BY NORA MACDONALD, DIRECTOR, MEMBER ENGAGEMENT
NARFE Recruiter Rewards
Help NARFE Grow!
Did you know that NARFE rewards our members for recruiting new members? Think of it as a special thank you from Headquarters for increasing our numbers and voices. $8 for every active fed!
Enrollment Submission Requirements:
• Recruiter’s Membership ID must be included on each application.
HOW DOES THIS AWESOME INCENTIVE WORK?
January-August
• Recruiter receives $8 for any new (never joined) active federal employee enrollment only September-December Fall Membership Recruitment Drive
• Recruiter receives $10 for new enrollment (any member type—active or retired federal employee)
New members can join by:
• Mailing in the application from the F-135 brochure
• Going online to narfe.org/join
• Calling us at 800-456-8410 Ext 1, Monday through Friday, 8 a.m. to 5 p.m. EST.
• Mailing in the application that appears in every issue of NARFE Magazine
OCTOBER 30
NOVEMBER 4 Open Season Prep (FEHB/ PSHB, FEDVIP, FSAs)
NOVEMBER 6 FEHB/PSHB without Medicare (Active Feds)
NOVEMBER 13 FEHB/PSHB with Medicare
NOVEMBER 20
Consolidated Financial Statements
for the Year Ended December 31, 2024
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. According to AccountingInsights.org, “A clean audit opinion is a critical indicator of an organization’s financial health and integrity. It signifies that the financial statements are free from material misstatements, providing stakeholders with confidence in the accuracy and reliability of the reported information. A clean audit opinion, often referred to as an unqualified opinion, is the gold standard in financial reporting. It reflects the auditor’s judgment that an organization’s financial statements present a true and fair view of its financial position, in accordance with the applicable financial reporting framework. This opinion is not given lightly; it is the result of a rigorous and thorough examination of the company’s financial records, internal controls, and compliance with accounting standards.”
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 2024 was lower than 2023, $8,775,451 compared to $9,736,038, a reduction of $960,588. Factors such as a reduction in membership revenue, contributions, advertising and royalties contribute to the total decline in revenue along with an overall increase of $1.3 million in expenses.
As membership declined in 2024, so did the membership dues revenue, down $4,569,088 from $4,725,569 in 2023. We are anticipating our partnership with the membership marketing firm, Street Level Studio, will turn the trend around in 2025. The unsteady activities from the White House have resulted in an influx of new members looking for solid ground. NARFE is poised to take advantage of the current political climate.
There was a negative change in net assets in 2024 of ($212,313) from $2,063,402 in 2023. NARFE investments continue to increase making it possible for NARFE to invest in membership programs—giving back to our members.
—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 20, 2025. The purpose of the meeting was to review and discuss NARFE’s annual financial audit for the year ended December 31, 2024. NARFE 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, 2024, 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.”. CBIZ CPAs also stated: “In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole. . . .” Further CBIZ CPAs stated: “ . . We conducted our audit in accordance with auditing standards accepted in the United States of America (“GAAS”).”
In (2024), Total Assets decreased by approximately ($19,301.00). In (2024) Total Assets equaled, $15,131,155. Total Assets in (2023) equaled $15,150,456. Total Revenue & Support for (2024) was $8,775,451, down $960,587 from Total Revenue & Support in (2023): $9,736,038. Total Expenses for (2024) were $8,987,764 which was $1,315,128 higher than Total Expenses in (2023): $7,672,636. Change in Net Assets (2024) was a negative ($212,313).
Pursuant to the Audit Committee’s recommendation, the NEB voted on August 14, 2025 to accept the 2024 Audited Financial Statements. 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)
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, 2024, 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 consolidated financial position of the Association as of December 31, 2024, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Association and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of 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 consolidated financial statements are available to be issued.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes
our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the 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 2024 consolidating schedule of financial position and activities on pages 19-20 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 2024 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
The consolidated financial statements of National
Active and Retired Federal Employees Association and Affiliate as of and for the year ended December 31, 2023, were audited by Marcum LLP, whose report dated May 7, 2024, expressed an unmodified opinion on those statements. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2023, is consistent, in all material respects, with the audited financial statements from which it has been derived.
CBIZ CPAs P.C.
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE
Washington, DC June 26, 2025
CONSOLIDATED STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2024 (WITH SUMMARIZED FINANCIAL
National Active and Retired Federal Employees Association and Affiliate
Consolidated Statement of Financial Position December 31, 2024 (With Summarized Financial Information for the Year Ended December 31, 2023
AS OF DECEMBER 31, 2023)
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, 2024, are as follows (rounded):
President: $133,033
Secretary/Treasurer: $119,062
Regional Vice Presidents: $14,477
In 2024, NARFE’s investments were held with these firms:
• Operating Fund: Morgan Stanley and Merrill Lynch
• Building Fund: Morgan Stanley
• Life Membership Trust Fund: Morgan Stanley
• Contingency Fund: Morgan Stanley
• PAC Fund: Raymond James
NATIONAL ACTIVE AND
National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Activities for the Year Ended December 31, 2024 (With Comparative Totals for the Year Ended December 31, 2023)
CONSOLIDATED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2024
(WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2023)
Expenses
National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Functional Expenses for the Year Ended December 31, 2024 (With Comparative Totals for the Year Ended December 31, 2023)
ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE
CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES
THE YEAR ENDED DECEMBER 31, 2024
31, 2023) Supporting Services
CONSOLIDATED STATEMENT OF CASH FLOWS
National Active and Retired Federal Employees Association and Affiliate
Consolidated Statement of Cash Flows for the Year Ended December 31, 2024
(With Comparative Totals for the Year Ended December 31, 2023)
Cash Flows From Operating Activities
Change in
Adjustments to reconcile change in net assets to net cash (used in) provided by operating activities:
and amortization
2023)
Net Cash (Used in) Provided by Operating Activities (75,434) 1,173,625
Cash Flows From Investing Activities
Purchases
(255,129)
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, 2024
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.
programs. Ten percent of all eligible member national dues collected are passed through to these federations to facilitate local activities. In addition, there are 762 chapters affiliated with NARFE that are located in the United States and some international locations.
accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Consequently, revenue is recognized when earned and expenses are recognized when incurred.
The accompanying notes are an integral part of these consolidated financial statements. 7
There are fifty-four (54) federations, located in the United States, District of Columbia, Panama, Puerto Rico, and the Philippines, that are affiliated with NARFE and conduct local independent
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
Principles of Consolidation: The accompanying financial statements as of and for the year ended December 31, 2024, 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
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, 2024, the Association had not increased its historical loss rate, as receivable amounts are due within one year, and there were no current economic factors that indicated changes were necessary. Uncollectable accounts are written off when all efforts to collect these receivables have been exhausted and there is no possibility of recovery. Recoveries of accounts receivable previously written off are recorded when received as an offset to credit loss expenses in the year of recovery, in accordance with the Association’s accounting policy election.
Investments: Investments consist of mutual funds, corporate bonds and exchange-traded funds. Investments are recorded in the accompanying consolidated financial statements at their fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability through an orderly transaction between market participants at the measurement date. Purchases and sales are reflected on a trade-date basis. Interest, dividends and realized gains or losses are recorded when earned. Changes in the fair value of the portfolio are recorded as unrealized gains or losses.
Fair Value of Financial
Instruments: In accordance with the accounting standards for fair value measurement for those assets and liabilities that are measured at fair value on a recurring basis, the Association has categorized its applicable assets and liabilities measured at fair value into a required fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level-input that is significant to the fair value measurement of the instrument.
Applicable financial assets and liabilities are categorized on the basis of the inputs to the valuation techniques as follows:
Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the client has the ability to access.
Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.
Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.
As of and for the year ended December 31, 2024, only the Association’s investments, as described in Note 2 to these consolidated financial statements, were measured at fair value on a recurring basis.
Property and Equipment: All acquisitions of property and equipment greater than $1,500 and an economic life in excess of one year are capitalized at cost. Depreciation and amortization is computed by using the straight-line method based upon the estimated useful lives of the assets. Building and improvements are recorded at cost and depreciated using the straight-line method over their estimated useful lives of 20 to 40 years. Furniture, equipment and software are recorded at cost and depreciated using the straight-line method over their estimated useful lives of three to eight years. Expenditures for major repairs and improvements that extend the useful life of an asset are capitalized, whereas expenditures for minor repairs and maintenance costs are expensed when incurred. The cost of property and equipment retired or disposed of is removed from the accounts along with the related accumulated depreciation, and any gain or loss is reflected in revenue and support or expenses in the accompanying consolidated statement of activities.
Classification of Net Assets: NARFE’s net assets are reported as follows:
• Net assets without donor restrictions represent the portion of expendable funds that are available for any purpose in performing the primary objectives of the Association at the discretion of the Association’s management and the National Executive Board (“the Board”). From time to time, the Board designates a portion of these net assets for specific purposes, which makes them unavailable for use at management’s discretion. The Board has designated $2,000,000 of net assets without donor restrictions to serve as working capital reserve to secure the Association’s long-term financial viability. Also included in board-designated net assets is the life membership fund in the amount of $1,806,702.
• 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, 2024, the Association had no net assets with donor restrictions that are required to be maintained in perpetuity.
Revenue Recognition
Membership Dues:
Membership dues are on an anniversary-date basis and are recognized ratably over the membership period since there are no distinct performance obligations and the general member benefits are considered a bundled group of performance obligations that are delivered to members throughout the membership period. Life membership dues are recognized as revenue over the duration of the life membership based on the collective average life expectancy for life members, according to life expectancy tables. Accordingly, dues paid by members in advance of the reporting period to which the dues pertain are reported as deferred revenue in the accompanying consolidated statement of financial position.
Contributions: Unconditional contributions received are recorded as revenue with or without donor restrictions, depending on the existence and/or nature of any donor stipulations. Donor restricted contributions are reported as an increase in net assets with donor restrictions, depending
on the nature of the stipulation. When a restriction expires (that is, when a stipulated time restriction ends or purpose of a restriction is accomplished), net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the accompanying consolidated statement of activities as net assets released from restrictions.
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE
Royalties:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
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 when earned according to contractual agreements with each organization.
loss is recognized for the difference. As of December 31, 2024, the Association has not recognized an impairment loss.
Functional
Allocation of
NOTE 1 – NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Investment Income: Realized and unrealized gains and losses and investment income (loss) derived from investment transactions are included as income in the year earned.
FUNCTIONAL ALLOCATION OF EXPENSES
Advertising: Advertising revenue is recognized based upon 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.
Conferences and meetings: Conferences and meetings revenue consists of registrations, event sales and sponsorship fees and is recognized in the year in which the conference takes place. Revenue from these activities received in advance of the meeting is reported as deferred revenue in the accompanying consolidated statement of financial position.
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
Impairment of Long-Lived Assets:
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.
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.
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
NOTE 2 – INVESTMENTS AND FAIR VALUE MEASUREMENT
NOTE 2 – INVESTMENTS AND FAIR VALUE MEASUREMENTS
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.
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:
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:
Quoted Prices in Active Markets for Other Significant Assets/ Observable Unobservable Total Liabilities Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3)
For the year ended December 31, 2024, the Association used the following methods and significant assumptions to estimate fair value for investments recorded at fair value:
Mutual funds and exchange-traded funds – Value of these funds is based on quoted market prices in active markets. 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.
interest rates for certificates of deposit with similar remaining time to maturity.
NOTE 3 – PROPERTY AND EQUIPMENT AND RELATED DEPRECIATION
The Association held the following property and equipment as of December 31, 2024:
NOTE 3 – PROPERTY AND EQUIPMENT AND RELATED DEPRECIATION
The Association held the following property and equipment as of December 31, 2024:
The Association held the following property and equipment as of December 31, 2024:
Land
700,000
$7,00,000
Accumulated Depreciation (5,388,124)
Property and Equipment, Net $2,023,332
Total Property and Equipment 7,411,456
Less: Accumulated Depreciation (5,388,124)
Depreciation and amortization expense was $135,912 for the year ended December 31, 2024.
Property and Equipment, Net $2,023,332
Depreciation and amortization expense was $135,912 for the year ended December 31, 2024.
NOTE 4 – NET ASSETS
Depreciation and amortization expense was $135,912 for the year ended December 31, 2024.
NET ASSETS WITHOUT DONOR RESTRICTIONS
NOTE 4 – NET ASSETS
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE
NOTE 4 – NET ASSETS
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE
Net Assets Without Donor Restrictions
NET ASSETS WITHOUT DONOR RESTRICTIONS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2024, the Association’s net assets without donor restrictions were composed of the following:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2024, the Association’s net assets without donor restrictions were composed of the following:
As of December 31, 2024, the Association’s net assets without donor restrictions were composed of the following:
THE YEAR ENDED DECEMBER 31, 2024
Undesignated $6,104,361 Board-designated life membership fund
Board-designated operating reserve
NOTE 4 – NET ASSETS (CONTINUED)
NOTE 4 – NET ASSETS (CONTINUED)
Total Net Assets Without Donor Restrictions $ 9,911,063
NET ASSETS WITH DONOR RESTRICTIONS
NET ASSETS WITH DONOR RESTRICTIONS
Net Assets With Donor Restrictions
Without Donor Restrictions
As of December 31, 2024, net assets with donor restrictions were available for the following purposes:
As of December 31, 2024, net assets with donor restrictions were available for the following purposes:
As of December 31, 2024, net assets with donor restrictions were available for the following purposes:
NARFE PAC – political contributions
$
NARFE PAC – political contributions $ 635,754
Total Net Assets With Donor Restrictions
Total Net Assets With Donor Restrictions $ 675,766
NOTE 5 – REVENUE FROM CONTRACTS WITH CUSTOMERS
NOTE 5 – REVENUE FROM CONTRACTS WITH CUSTOMERS
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, 2024:
The following table provides information about significant changes in the Association’s deferred membership revenue for the year ended December 31, 2024:
Deferred membership revenue, beginning of year
Deferred membership revenue, beginning of year
The following table provides information about significant changes in the Association’s deferred membership revenue for the year ended December 31, 2024:
$ 3,547,534 Membership revenue recognized that was included in deferred membership revenue at the beginning of year (2,386,626) Increase in deferred membership revenue due to cash received during the period 2,110,632
$ 3,547,534 Membership revenue recognized that was included in deferred membership revenue at the beginning of year (2,386,626) Increase in deferred membership revenue due to cash received during the period 2,110,632
Deferred Membership Revenue, End of Year $ 3,271,540
Deferred Membership Revenue, End of Year $ 3,271,540
NOTE 6 – RISKS AND COMMITMENTS
NOTE 6 – RISKS AND COMMITMENTS
NOTE 6 – RISKS AND COMMITMENTS 14
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK
The Association maintains its cash and cash 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, 2024, the amount in excess of the maximum limit insured by the FDIC was approximately $877,000. The Association monitors the creditworthiness of this institution and has not experienced any credit losses on its cash and cash equivalents.
The Association maintains its cash and cash 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, 2024, the amount in excess of the maximum limit insured by the FDIC was approximately $877,000. The Association monitors the creditworthiness of this institution and has not experienced any credit losses on its cash and cash equivalents.
INVESTMENT RISK
The Association maintains its cash and cash 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, 2024, the amount in excess of the maximum limit insured by the FDIC was approximately $877,000. The Association monitors the creditworthiness of this institution and has not experienced any credit losses on its cash and cash equivalents.
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.
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, 2024, were as follows:
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, 2024, were as follows:
Cash and cash equivalents
$ 1,508,554
Total Financial Assets Available Within One Year 13,019,240
Less:
Amounts unavailable for general expenditures within one year due to donor’s restriction with purpose restriction (675,766)
Financial Assets Available to Meet General Expenditures Within One Year
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.
$ 12,343,474
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
contribution up to 6% of annual compensation. Total contributions made by the Association were approximately $58,000 for the year ended December 31, 2024.
NOTE 9 – INCOME TAXES
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 hire date. Once eligible, an employee is 100% vested. The Association matches 60% of each employee’s voluntary
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 $4,000 for the year ended December 31, 2024. NARFE PAC is subject to federal income taxes under IRC Section 527 with respect to certain investment income. For the years ended December 31, 2024 no provision for federal or state income taxes was made, as 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.
The Association performed an evaluation of uncertainty in income taxes for the year ended December 31, 2024, and determined that there
16
were no matters that would require recognition in the consolidated financial statements or that may have an effect on its tax-exempt status. As of December 31, 2024, there are no audits for any tax periods that are currently pending or in progress. It is the Association’s policy to recognize interest and/or penalties related to uncertainty in income taxes, if any, in income tax or interest expense. As of December 31, 2024, the Association had no accruals for interest and/or penalties.
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, 2023, 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 June 26, 2025, 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.
Consolidating Schedule of Financial Position
December 31, 2024
CONSOLIDATING SCHEDULE OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2024
Consolidating Schedule of Activities for the Year Ended December 31, 2024
(Previously Office Depot/Office Max)
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Because you’re a member of NARFE, you now have access to exclusive members only discounts at ODP Business Solutions (previously Office Depot/Office Max). Members save up to 75% off on ODP Business Solutions Best Value list of preferred products and can take advantage of products discounted off the officedepot.com regular prices. Restrictions may apply so visit officediscounts.org/narfe for details. Product and service discounts may no longer be available for in-store purchases.
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While not a discount program, Purchasing Power is an exclusive purchase program helps members buy brand-name computers, electronics, appliances and furniture via annuity allotment when cash is not an option. No credit check or down payments.
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Signature FCU is a full-service, nationwide federal credit union operating since 1970. Membership starts with just a $5 deposit into a standard savings account—no membership fees and no minimum balance requirements to enjoy all the products and services we have to offer, including the NARFE Visa® Platinum Credit Card. This special card gives back to your organization and gives you one point for every $1 you spend to redeem for cash, travel, and merchandise.
WELLNESS
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As the largest operator of senior living communities in the US, Brookdale has over 1,000 locations all across the country. Members are eligible for 7.5% discount at Brookdale Independent Living, Assisted Living and Memory Care communities and 10% discounts on Brookdale Private Duty Home Care. Discounts are for new move-ins/ customers only.
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Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-of-the-art ultrasound technology in your neighborhood. Operator code BKHN075
MOVING SERVICES
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At Wheaton, we know interstate relocation is much more than trucks and boxes. With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation.
TRAVEL, TRANSPORT & ENTERTAINMENT
Choice Hotels International | 800-258-2847 | www.choicehotels.com
With 6,400 hotels throughout the world, Choice Hotels offers something for everyone. As a member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967.
With over 160 tours to all 7 continents and travel styles varying from small group to river cruising, Collette offers something for everyone. As a NARFE member, you receive an additional $50-$100 off all tours including sales and offers! Just use your member benefit code NARFESAVE or let our reservation agent know you are a NARFE Member when booking.
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When you’re ready to go, Enterprise Rent-A-Car makes it easy. We offer everyday low rates on a great selection of cars, trucks and vans and customers are picked up at no extra cost*. See website for exclusions.
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Heroes Vacation Club is your NARFE member-exclusive travel club with discounts on hotels, resorts, cruises, car rentals, airfare, and more.
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Hotel Engine, a private booking platform, connects organizations and their members to deeply discounted hotel rates.
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ADDITIONAL PERKS
Woodworking at the First Federal Prison
In 1891, Congress established the first federal prison system and transferred the old military prison at Leavenworth, KS, to the U.S. Department of Justice (DOJ). Soon, construction of a new prison in Leavenworth began. This photo, circa 1912, shows the civilian employee foreman at the new prison’s carpenter shop with then-modern equipment, including a planer, molder, jointer, and shaper. The foreman supervised approximately 40 prisoners, and the shop catered to all the new prison’s woodworking needs. Today, the DOJ’s Federal Bureau of Prisons offers various vocational training programs for its inmates.
PHOTO from the Records of the National Archives, courtesy of the National Archives History Office, in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. To join, visit www.shfg.org.
DID YOU KNOW?
UNICOR is the trade name for Federal Prison Industries (FPI), a wholly owned government corporation that Congress established on June 23, 1934. Its mission is to protect society and reduce crime by preparing inmates for successful reentry through job training. Currently, UNICOR produces over 80 products and services, including textiles, electronics, metals, printing and media services, vehicle repair/remanufacturing, wire and plastics, wood, and energy conservation.
* The Blue Cross and Blue Shield Service Benefit Plan may pay a hearing aid benefit for FEP Blue Basic® and FEP Blue Standard® members up to $2,500 total with prior approval every 5 calendar years for adults age 22 and over, and up to $2,500 total per calendar for members up to age 22. FEP Blue Focus® does not have a hearing aid benefit.
The Blue Cross® and Blue Shield® words and symbols, Federal Employee Program®, MyBlue®, Blue365®, and FEP® are all trademarks owned by the Blue Cross Blue Shield Association. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in the Blue Cross and Blue Shield Service Benefit Plan brochure. Blue365 offers access to savings on health and wellness products and services that members may purchase from independent vendors, which are not covered benefits under the Blue Cross and Blue Shield Federal Employee Program, Blue Cross Blue Shield FEP Dental® and/or Blue Cross Blue Shield FEP Vision®. These products and services will be offered to you through the entire benefit year.
During the year, the independent vendors may offer additional discounts on these products and services. To find out what is covered under your policy, contact the customer service number on your member ID card. Any disputes regarding your health insurance products and services may be subject to your plan’s grievance process. BCBSA may
