January 2012 Magazine by NARFE

Finally, a cell phone that’s… a phone!

e y ic d b Pr ce du 48 Re $

o t N trac n Co

with rates as low as $3.75 per week! “Well, I finally did it. I finally decided to enter the digital age and get a cell phone. My kids have been bugging me, my book group made fun of me, and the last straw was when my car broke down, and I was stuck by the highway for an hour before someone stopped to help. But when I went to the cell phone store, I almost changed my mind. The phones are so small I can’t see the numbers, much less push the right one. They all have cameras, computers and a “global-positioning” something or other that’s supposed to spot me from space. Goodness, all I want to do is to be able to talk to my grandkids! The people at the store weren’t much help. They couldn’t understand why someone wouldn’t want a phone the size of a postage stamp. And the rate plans! They were complicated, confusing, and expensive… and the contract lasted for two years! I’d almost given up when a friend told me about her new Jitterbug phone. Now, I have the convenience and safety of being able to stay in touch… with a phone I can actually use.” The cell phone that’s right for me. Sometimes I think the people who designed this phone and the rate plans had me in mind. The phone fits easily into my pocket, and flips open to reach from my mouth to my ear. The display is large and backlit, so I can actually see who is calling. With a push of a button I can amplify the volume, and if I don’t know a number, I can simply push “0” for a friendly, helpful operator that will look it up and even dial it for me. The Jitterbug also reduces background noise, making the sound loud and clear. There’s even a dial tone, so I know the phone is ready to use.

Aﬀordable plans that I can understand – and no contract to sign! Unlike other cell phones, Jitterbug has plans that make sense. Why should I pay for minutes I’m never going to use? And if I do talk more than I plan, I won’t find myself with no minutes like my friend who has a prepaid phone. Best of all, there is no contract to sign – so I’m not Monthly Minutes

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IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc.Your invoices will come from GreatCall. All rate plans and services require the purchase of a Jitterbug phone and a one-time set up fee of $35. Coverage and service is not available everywhere. Other charges and restrictions may apply. Screen images simulated. There are no additional fees to call Jitterbug’s 24-hour U.S. Based Customer Service. However, for calls to an Operator in which a service is completed, minutes will be deducted from your monthly balance equal to the length of the call and any call connected by the Operator, plus an additional 5 minutes. Monthly rate plans do not include government taxes or assessment surcharges. Prices and fees subject to change. 1We will refund the full price of the Jitterbug phone if it is returned within 30 days of purchase in like-new condition. We will also refund your first monthly service charge if you have less than 30 minutes of usage. If you have more than 30 minutes of usage, a per minute charge of 35 cents will apply for each minute over 30 minutes. The activation fee and shipping charges are not refundable. Jitterbug is a registered trademark of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics America, Inc. and/or its related entities. Copyright © 2011 GreatCall, Inc. Copyright © 2011 by firstSTREET for Boomers and Beyond, Inc. All rights reserved.

For Active and Retired Federal Employees

RETIREMENT LIFE

JANUARY 2012, Volume 88, Number 1

LEGISLATIVE REPORT 8 13 14 15 16 18

Supercommittee Fails: What’s Next? COLA Calculation Still an Issue Senate Panel Approves USPS Reform House Passes Bill to Honor Fallen Feds Senate Committee Approves Bill Reducing Workers’ Compensation Civics 101: Elections – Plan, Organize,Watch,Vote

COVER STORY 24

32nd NARFE National Convention. Delegates will convene August 26-30 in Reno-Sparks, NV, for the Association’s biennial business meeting.

DEPARTMENTS 32 38 41 42 43 46

Cover design by Jim Richards

COLUMNS 6 Message From the National President

28 Managing Money 30 Live Well

SPECIAL SECTION 20 2011: NARFE Year in Review

NARFE Resources

Questions & Answers

NARFE-PAC Coupon . . . . . . . .13

Retirement Benefits

Membership Application . . . . . .39

NARFE News Out & About Letters For the Record: TSP Investments, COLA Chart ‘Like’ us on Facebook (Narfe National Headquarters)

visit us online at www.narfe.org

DuesWithholdingApplication . .40 Alzheimer’s Coupon . . . . . . . . .42 NARFE Member Perks . . . . . . .44

NATIONAL OFFICERS

Here’s How to Contact NARFE ...

JOSEPH A. BEAUDOIN, President; natpres@narfe.org PAUL H. CAREW, Vice President; natvp@narfe.org ELAINE HUGHES, Secretary; natsec@narfe.org RICHARD G. THISSEN, Treasurer; nattreas@narfe.org

If you want to: • Join NARFE Call (toll-free):

800-627-3394 or 800-456-8410 Or go to: www.narfe.org

If you want to: • Change your address • Check your membership status • Find out dues owed • Provide a death notification Call (toll-free):

800-456-8410 E-mail:

memberrecords@narfe.org If you want to: • Add your e-mail address to your record (to receive GEMS e-mail messages, the Legislative Hotline and NARFE NewsWatch): Call (toll-free):

800-456-8410 E-mail:

memberrecords@narfe.org

REGIONAL VICE PRESIDENTS REGION I (Acting) Augie Stratoti (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 603-889-1073 E-mail: augrs@juno.com REGION II Ronald P. Bowers (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-308-0420 E-mail: narferbowers@msn.com REGION III Donald Stewart (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) Tel: 305-442-6388 E-mail: dejs33149@aol.com REGION IV Paul E. Johnson (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 812-306-5137 E-mail: pejohnson@tds.net REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 620-241-1131 E-mail: ek617@att.net

REGION VI Jerome S. Smith (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-534-5849 E-mail: retiredjer@aol.com REGION VII Betty Lucero-Turner (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 719-583-0910 E-mail: blturner2311@aol.com REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) Tel: 707-644-7565 E-mail: hlz17@aol.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) Tel: 360-692-9741 E-mail: lannyjean@comcast.net REGION X William F. Martin (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 540-872-3345 E-mail: narfe2065@hughes.net

E-mail: memberrecords@narfeorg

If you want to:

• Hear the Legislative Hotline Call (toll-free):

877-217-8234 If you want to: • Get materials to recruit members: Call (toll-free):

800-627-3394 E-mail:

rr@narfe.org

For any other NARFE matter: Call NARFE Headquarters

703-838-7760 E-mail: hq@narfe.org Fax:703-838-7785 Write: NARFE 606 N. Washington St. Alexandria,VA 22314

NARFE MAGAZINE Volume 88,Number 1 Editor, Margaret M. Carter Assistant Editor, Donna J. St. John Editorial Administrator, Toni Vallario Graphic Designer, Beth Bedard Contributing Designers, Charlene Gridley, Jim Richards Editorial Board: Joseph A. Beaudoin, Paul H. Carew, Elaine Hughes, Richard G. Thissen Editorial Office: NARFE, Attn: NARFE magazine, 606 North Washington St., Alexandria, VA 22314-1914; Phone: 703-838-7760; Fax: 703-838-7781; E-mail: rl@narfe.org Advertising Sales: Warren Berger, Media People Inc., 122 East 42nd Street, Suite 725, New York, NY 10168; 212-779-7172, ext. 223; E-mail: wberger@mediapeople.com

NARFE for the Visually Impaired On the Telephone: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-504-7300 or go to www.nfbnewsline.org. On Tape: Issues of NARFE magazine are also available on cassette through the National Library Service for the Blind and Physically Handicapped. To find out about availability in your area, call 800-424-8567 and ask for the Reference Section. The Association, since July 1970, has been classified by the IRS as a tax exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

NARFE (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St.,Alexandria,VA 22314. Periodicals postage paid at Alexandria,VA, and additional mailing offices. Members: Annual dues includes subscription. Non-member subscription rate $45. Postmaster: Send address change to: NARFE Attn:Member Records,NARFE 606 N.Washington St.,Alexandria,VA 22314.To ensure prompt delivery,members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Contents of this magazine are copyrighted © 2012.Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in NARFE, but at the same time we will not undertake to guarantee the reliability of our advertisers.

JANUARY 2012 | NARFE

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A Message From the National President

Gearing Up for 2012

ow that the supercommittee has failed to reach a bipartisan agreement to reduce the federal deficit, the sequestration process will be implemented, and many federal programs will undergo devastating cuts. NARFE will continue to defend against any plans that would unfairly target federal workers and retirees. Planning is under way at NARFE Headquarters as we prepare for our 32nd Biennial National Convention in Reno-Sparks, NV, August 26-30. This convention should prove to be a significant one for the Association’s future. If you are interested in being on a National Convention committee, see p. 27 for the procedure you need to follow. If you have never been on a National Convention committee before, please consider volunteering to do so. I can guarantee that it will be a rewarding experience, and it will give you the opportunity to serve and become more involved in NARFE. Members of the National Executive Board are often asked about our affinity partners and the materials that NARFE members receive from them in the mail. All of the affinity partners have been selected because of the exceptional services they have pledged to provide to NARFE members. As a result of our relationship with our affinity partners, NARFE members receive special savings and discounts on a variety of products and services, ranging from financial services and moving companies to travel and vacations. Affinity partners also are a source of needed revenue for NARFE. I would like to single out a few of our affinity partners. Life Line Screening has assisted more than 28,000 members over

an eight-year period. More than 1,000 members were diagnosed with a critical or significant condition, which resulted in immediate treatment or referral to their primary doctor. Hundreds of others were advised to see their doctors as soon as possible for conditions that they were not aware of, requiring treatment to prevent a serious condition. Another affinity partner that has helped many of our members is NARFE Insurance Services (Marsh U.S. Consumer), which offers a variety of insurance products. The NARFE Premier Federal Credit Union provides members with a full range of banking options at rates equal to or better than many local banks. GEICO Insurance provides discounts to members for car insurance, and Medical Air Services Association assists NARFE members who have emergencies while traveling overseas and in the United States. Our entire list of affinity partners appears in the NARFE Perks section of each issue of NARFE magazine (see pp. 44-45). You also can go to www.narfe.org and click on the Member Perks link on the Members Home Page. By using our affinity partners, you not only help NARFE financially, but you also will be assured of the services of a reputable company. As I wrote in my December column, 2011 was an unprecedented year for NARFE. Please take a look at the article on p. 20, “NARFE’s Year in Review,” which highlights our work on behalf of NARFE members and the federal family over the last year, as well as the accomplishments of our members throughout the country. On behalf of all of us at NARFE Headquarters, I want to wish you a very Happy New Year, and I look forward with hope and determination to what we will be able to accomplish in 2012.

PLANNING IS under way at NARFE Headquarters for our 32nd National Convention in August 2012.

Joseph A. Beaudoin natpres@narfe.org

JANUARY 2012 | NARFE

Best of Italy + Salzburg & Vienna, Austria Rome – Pompeii – Amalfi Coast – Florence – Pisa – Verona – Venice

15 Days

from $2398*

Join other NARFE members departing May 2, 2012

Enjoy three days in Rome with an included city tour of Ancient Rome and tour of the Vatican and Sistine Chapel. Two nights in Sorrento allows included sightseeing of the excavations of famous Pompeii and a tour of the beautiful coastal drive of Amalfi and the cliffs. Your next two nights are in the Tuscany region with included sightseeing in Florence, Pisa and Verona followed by two nights in Venice with sightseeing. Next, Austria with two nights in Mozart’s birthplace Salzburg with a Sound of Music excursion and two nights in Vienna, Austria with a city tour and Danube River Cruise. Includes 12 breakfasts, 9 dinners & English-speaking escort throughout.

125:(*,$1 &58,6( /,1(

Alaska Cruise 13 Days

Plus…Amtrak Coast Starlight Train Tour Travel with other NARFE members departing June 22, 2012

from $2098*

Start in Seattle with a city tour. Board the NCL Jewel for a 7-night Alaska cruise to Ketchikan, “The Salmon Capital of the World;” Juneau, Sawyer Glacier, with incredible colors; Skagway, where you can stroll the weathered boardwalks; and Victoria, BC on Vancouver Island. Next board the Coast Starlight train to San Francisco. Travel by day through Washington and Oregon’s spectacular scenic vistas. Enjoy your Amtrak sleeper-roomette at night (includes VIP lounge). Arrive in Napa and visit two of the area’s premier wineries. Spend two nights in San Francisco (stay near Fisherman’s Wharf ) with a city tour including the Golden Gate Bridge and Pier 39.

National Parks Tour of the Golden West

14 Days

Join other NARFE members departing July 6, 2012

from $1348*

Visit landmarks in NINE NATIONAL PARKS. Witness the giant Redwood trees in Kings Canyon and Sequoia National Parks, then be amazed at the rock formations and waterfalls in Yosemite National Park. Visit majestic Lake Tahoe and stop in historic Virginia City, Reno, Winnemucca and Elko, Nevada. In Utah tour the world’s largest man-made excavation – the Kennecott Copper Mine plus the Great Salt Lake! Next tour the unique rocks Arches’ National Park; and Canyonlands, with enchanting vistas carved by the Colorado and Green Rivers. Next visit Capitol Reef and Bryce Canyon National Parks and drive through the Dixie National Forest. Then it’s the grandest of all National Parks, The Grand Canyon, for both a day and night. Finally, try your luck in exciting Las Vegas with an included day excursion to Zion National Park.

Romantic Rhine River Cruise Enjoy the YMT chartered, 4-star ship, the “TUI Allegra”! Cruise from Frankfurt to Amsterdam… PLUS tour Germany!

14 Days

Travel with other NARFE members departing July 15, 2012

from $2398*

Start in Berlin, Germany for a 4-day tour including east and west Berlin; Checkpoint Charlie; Potsdam; Dresden; Weimar and Frankfurt. You’ll tour the Rococo Castle (Sansoucci), drive the German Autobahn, and visit many historic sites. Your cruise includes the Rhine’s highlights including Rudesheim, the Loreley passage to Cologne, Dusseldorf, Rotterdam, Amsterdam, Nijmegen, and Bonn. Your tour will continue for two more days and nights visiting Heidelberg and Munich, with included sightseeing, before flying home from Munich. Your “brand new” ship the TUI Allegra, constructed in 2011, offers a state-of-the-art, experience! Price includes (very limited) outside Porthole. *Add $300 per person for French Balcony.

125:(*,$1 &58,6( /,1(

12 Days

Hawaii Cruise & Tour Join other NARFE members departing September 14, 2012

from $1798*

Start in Honolulu, Hawaii and exciting Waikiki Beach for one night. The following day board NCL’s Pride of America for the start of your Hawaii Cruise Experience. Sail upon the big, blue, Pacific to ports in Kahului, Maui (2-days), offering beautiful sea vistas; Hilo, the flower capital of Hawaii; Kona, Hawaii and take a walking tour through one of the many island coffee plantations. Continue to Nawiliwili, Kauai, nicknamed the ‘Garden Island’ with glorious stretches of palm-fringed beaches and cruise the Na Pali Coast. Disembark in Honolulu and enjoy a city tour including, the Punch Bowl Crater, Pearl Harbor and the USS Arizona Memorial. Spend a final three days and nights in Waikiki with an included city tour of Honolulu and Pearl Harbor.

*Price per person, based on double occupancy. Airfare is extra.

Call for details & itinerary 7 days a week:

1-800-736-7300

LEGISLATIVE REPORT

Supercommittee Fails: Feds Remain What’s Next? Debt-Reduction

fter three months of deliberations, the 12-member, bipartisan Joint Select Committee on Deficit Reduction – better known as the congressional supercommittee – was unable to reach an agreement

within the time frame prescribed by the Budget Control Act of 2011, enacted as part of the compromise on raising the debt limit in August 2011. Under the law, the supercommittee was to vote no later than November 23, 2011, on a package reducing the federal deficit by at least $1.2 trillion over the 10-year period of 2012-2021. Two days before the deadline, the bipartisan co-chairs of the supercommittee, Rep. Jeb Hensarling, R-TX, and Sen. Patty Murray, D-WA, announced that the committee was unable to

come to a bipartisan agreement. “Despite our inability to bridge the committee’s significant differences, we end this process united in our belief that the nation’s fiscal crisis must be addressed, and that we cannot leave it for the next generation to solve,” they said in a statement. In response to the supercommittee’s admission of failure, NARFE President Joseph A. Beaudoin said: “We share the nation’s disappointment in the failure of the supercommittee to reach a NARFE members kept the heat on supercommittee members bipartisan agreement, right up to the committee’s deadline. Here, Washington but no deal is better than Federation representatives gather in the district office of Sen. a bad deal that could Patty Murray, supercommittee co-chair, to present letters generated by NARFE’s “Protect America’s Heartbeat” campaign. have unjustly singled

Targets in 2012 ■ Federal employees are, on

average, underpaid by 26.3 percent when compared with similar nonfederal jobs, says the Bureau of Labor Statistics. This “pay gap”was up about 2 percentage points from the year before. One reason for the increase: the federal pay freeze. ■ The Federal Deposit

Insurance Corporation ranks first among the “Best Places to Work in the Federal Government,” according to an annual survey by the Partnership for Public Service. The top variables in the survey are worker perceptions of their top political bosses and concerns over whether their jobs fit with their agency’s mission. However, compensation is an ever-growing concern.

LEGISLATIVE HOTLINE Toll-free! (24 Hours): 877-217-8234 Legislative Action Center: www.narfe.org JANUARY 2012 | NARFE

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Legislative Report out federal workers and retirees, who already have contributed to deficit reduction. However, under the sequestration process that was created in the event the supercommittee did not succeed, many of the services that Americans depend on could undergo devastating cuts. As decisions continue to be made about the future of these services and the federal workers who deliver them to the nation, NARFE and our hundreds of thousands of supporters will continue to inform the debate and defend against irresponsible plans that would unfairly target federal workers and retirees, and hinder our ability to protect America’s heartbeat.” News reports suggested that, at least in part, committee Democrats were unwilling to embrace cuts in federal retirement and health programs absent significant increases in revenues. Proposals floated by supercommittee Republicans to increase revenue on the order of $250 billion over 10 years failed to draw support from committee Democrats, given the degree of proposed cuts in mandatory and entitlement programs, including Social Security, Medicare and Medicaid.

STORY HIGHLIGHTS ■ The congressional supercommittee was unable to

come to a bipartisan agreement on a plan to reduce the federal deficit another $1.2 trillion. ■ The law that established the supercommittee provides that if the committee failed to reach an agreement, automatic budget cuts would take effect beginning January 2013. ■ NARFE believes that federal employees and retirees will continue to be the target of deficitreduction efforts.

What happens next? Well, nothing immediately, necessarily. The Budget Control Act enacted last summer provides for an alternative avenue to achieving the $1.2 trillion in required savings in the form of automatic across-theboard cuts, or sequestration. Spending would have to be cut enough to save $109.3 billion each year. Half the cuts ($54.7 billion) would have to come from defense programs; the rest, from the domestic side of the budget. These cuts affect both mandatory and discretionary spending, with proportionate cuts to both. But Social Security and Medicaid are protected, while Medicare providers would see, at most, a 2 percent reduction in payments.

service annuities and health benefits are protected from automatic reductions under the new budget law. Some members of Congress, including House Armed Services Committee Chairman Howard P. “Buck” McKeon, R-CA, and Senate Armed Services Committee Ranking Member John McCain, R-AZ, have already announced their intention to try to undo the scheduled automatic cuts in Pentagon spending. But President Obama threatened to veto any measure that tries to “undo” sequestration, unless a bipartisan deficit-reduction plan is agreed to before the automatic cuts take effect. Sequestration would begin on January 2, 2013. Under the current sequestration process, federal agencies’ budgets would be stretched further than they have been in a generation. Agencies may look to make cuts through attrition, offering “early outs” or other retirement incentives. However, agencies may be faced with reductions in force, furlough days, cuts in travel and training, as well as other painful cost-containing measures.

WHAT WILL SEQUESTRATION MEAN?

LEGISLATION BEFORE THE END OF 2011

Under the terms of the law, any shortfall in deficit reduction below $1.2 trillion (the minimum supercommittee target) would be made up automatically through a sequestration process modeled after the 1980’s Gramm-RudmanHollings budget law. NARFE members may recall that the sequestration process triggered a quarter century ago eliminated civil service cost-of-living adjustments, while leaving unscathed Social Security benefits. If there is any good news on that front in this year’s process, it is the fact that civil

There are a number of measures that are about to expire at the end of 2011 that Congress will likely address before the New Year. The three big ones are extending unemployment benefits and the payroll-tax holiday, and there is pressure to do a so-called “doc fix,” which would prevent doctors’ Medicare payments from being slashed. Congress may use these vehicles to put in some cuts, but it will be increasingly difficult to pass legislation in the Senate, where a 60-vote threshold is required. The current stopgap con-

SO, NOW WHAT?

UNTIL A BIPARTISAN deficit-reduction plan is agreed to, federal employees and retirees will be a target for hits.

JANUARY 2012 | NARFE

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Legislative Report

Don’t Let Up the Pressure Now! ‘Protect America’s Heartbeat’ Campaign Continues

lthough the congressional supercommittee failed to reach a bipartisan agreement on reducing the federal deficit, NARFE’s advocacy and communications work goes on. The “Protect America’s Heartbeat” campaign continues to use opportunities to educate lawmakers on the vital services that federal employees have and continue to perform. The earned benefits of retired and active employees will remain in the spotlight until a deficit plan is agreed to. Protect America’s Heartbeat will continue to: • Rapidly respond to misinformation about our earned benefits; • Send letters and e-mail messages to our legislators; • Submit letters to the editor of local newspapers; • Set up meetings with members of Congress; and • Tell our stories through the Protect America’s Heartbeat portrait campaign. We cannot let up the pressure. NARFE will continue to be proactive to ensure that federal retirees and workers are not unfairly targeted when reducing the federal deficit.

ABOVE: Members of Chapter 769 in Helena, MT, met with John Lewis, state director for Sen. Max Baucus, D, a member of the congressional supercommittee, and presented nearly 150 letters signed by NARFE members. From left: Jim Haddock, Pat Winfield, Robert Speirer, Lewis and Mike Devich. RIGHT, TOP: Nevada Federation members met with Jan Churchill, district representative for Rep. Shelley Berkley, D. They presented a packet of information, including portraits of federal employees and retirees collected in the Protect America’s Heartbeat campaign. From left: Bill Dwyer, Vincent Specht, Churchill and Irene Dwyer. RIGHT, BOTTOM: Members of several Washington state chapters presented a packet of information to representatives of Sen. Maria Cantwell, D. From left: Robert Rust, Chapter 43, Seattle; Paul Shell, Chapter 163, Tacoma; Tommy Bauer, office of Sen. Cantwell; Brian Kristansson, state director, office of Sen. Cantwell; and Rich Wilson, Chapter 1404, East Lake.

tinuing resolution (commonly referred to as a CR) to fund the government expires on December 16. We may see a showdown over the CR. While the supercommittee failed to achieve its assigned goals, there is nothing that would preclude the leadership in Congress from taking another run at a deficit-reduction

package except political will. Until a bipartisan deficit-reduction plan is agreed to, federal employees and retirees will be a target for hits. The fiscal challenges that threaten our earned benefits remain, and NARFE will continue to be vigorous in defense of federal employees and retirees.

By Julie Tagen, Legislative Director JANUARY 2012 | NARFE

COLA Calculation Still an Issue

ust because the congressional supercommittee has gone out of business, it does not mean that the proposals under consideration will go away. One recommendation that undoubtedly will come up again as the deficit-reduction debate continues in Washington is to change the inflation measure used for figuring cost-of-living adjustments (COLAs) for federal retirement benefits. Currently, COLAs for federal annuitants, Social Security beneficiaries and military retirees depend on changes in the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W measures increases in the prices of consumer goods throughout the economy. One of the proposals considered by the supercommittee would shift the inflation measure used for COLAs to the Chained-Consumer Price Index (C-CPI-U). NARFE opposes this change, which could mean a 3 percent reduction in annuities over a 10-year period. Economists argue that the C-CPI-U is a more accurate depiction of inflation because it reflects substitutions that consumers make when prices change. For example, if the price of beef rises, consumers will purchase more chicken. As a result of using this measure, inflation increases would be measured at a lower amount, resulting in smaller COLAs. The Congressional Budget Office (CBO) estimates that moving to the C-CPI-U would generate $217 billion over 10 years. Approximately $72 billion would come from new in-

STORY HIGHLIGHTS ■ A proposal to change the inflation measure used to

figure cost-of-living adjustments for federal retirement benefits is expected to be brought up again. ■ Changing to the Chained-Consumer Price Index could mean a 3 percent reduction in benefits over a 10-year period. NARFE opposes the change.

come tax revenue because income tax brackets also are pegged to inflation. The rest – approximately $145 billion – would come from cuts to the COLA over 10 years. The CBO projects that a Social Security beneficiary who started receiving benefits at age 62 would have lost about 3 percent of his or her benefits by age 73. However, over time, the smaller amounts would be compounded. Further, the C-CPI-U continues to be an inaccurate reflection of spending patterns for older Americans, who spend more on health care than does the CPI-W population. NARFE’S current Legislative Program states: “NARFE supports, and shall continue to evaluate, a CPI based on the objective analyses of the Bureau of Labor Statistics professionals, and oppose any politically arbitrary changes in the CPI. The BLS should establish a research program to develop an accurate measure for retirees.”

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NARFE | JANUARY 2012

Legislative Report

Senate Panel Approves USPS Reform

he Senate Committee on Homeland Security and Governmental Affairs has approved legislation that would provide the U.S. Postal Service (USPS) with short-term financial relief and make longer-term structural changes. Short-term financial relief is provided mainly by two provisions. First, the bill would allow a refund of approximately $7 billion in overpayments made by the USPS to fund its allocation of costs for postal retirees covered by the Federal Employees Retirement System (FERS). The USPS could use this refunded money to provide retirement incentives to its current employees in the form of either service credit or a cash payout. Second, the bill would amend the USPS’ payment schedule for prefunding retiree health benefits. Instead of requiring the USPS to fund its obligations for a 75-year period in just 10 years, the bill would extend the prefunding schedule to 40 years, and allow compliance with the privatesector standard to prefund at 80 percent of the future cost. The bill also seeks to improve the not-for-profit government agency’s profits by reducing workforce costs and reducing universal service standards. Notably, the bill would phase out door-to-door delivery for more than 40 million American households; allow the USPS to eliminate Saturday mail delivery; and close numerous mail processing facilities, slowing the movement of mail. It also would change arbitration rules, which could reduce pay and benefits negotiated in collective bargaining agreements. Finally, the bill also includes reductions to workers’ compensation benefits that would apply to the entire federal workforce (see story, p.16). Additionally, the legislation would allow the postal unions and the USPS to bargain regarding the creation of a postal service health benefits plan for postal employees. Every union would need to agree to the plan, and it would not be subject to arbitration, making it unlikely for the plan to result in reductions in health benefits. The bill, the 21st Century Postal Service Act of 2011, was

STORY HIGHLIGHTS ■ A Senate committee has approved a bill to reform

the U.S. Postal Service. ■ To deal with short-term financial problems, it would

refund $7 billion in overpayments for retirees covered under the Federal Employees Retirement System, and it would lessen the burden on the USPS to prefund retiree health benefits. ■ It also would change arbitration rules, which could reduce pay and benefits negotiated in collective bargaining agreements. ■ A House postal reform bill (H.R. 2309) has not yet been scheduled for a vote in the full House.

introduced by Sen. Joseph I. Lieberman, I-CT, on November 2. It was the result of a compromise with the bill’s cosponsors, Sens. Susan M. Collins; Thomas R. Carper, D-DE; and Scott P. Brown, R-MA. Those four senators were joined by Sens. Carl Levin, D-MI; Mark Pryor, D-AR; Mary L. Landrieu, D-LA; Claire McCaskill, D-MO; Mark Begich, D-AK; Rob Portman, R-OH; and Jerry Moran, R-KS, in voting in favor of the measure. Sens. Daniel K. Akaka, D-HI; Jon Tester, D-MT; Tom Coburn, R-OK; John McCain, R-AZ; Rob Johnson, RWI; and Rand Paul, R-KY, voted against the measure for diverse reasons. One provision of the bill that would have altered health benefits for postal retirees was struck from the bill through an amendment offered by Akaka. That provision would have required all Medicare-eligible postal retirees to enroll in Medicare Parts A and B, and pay the attendant Part B premium. It then would have created a new Medigap-like Federal Employees Health Benefits Program plan for those postal retirees to cover health care costs beyond what Medicare Parts A and B cover. NARFE was concerned that the provision could cause some retirees to pay more in total health care premiums or receive less in total health care coverage. At press time, the bill awaited consideration by the January and February 2012 Delegate Selection Dates full Senate, but had not yet been scheduled for debate Iowa Caucuses Tuesday, January 3 and votes. Postal reform legislation approved by the New Hampshire Primary Tuesday, January 10 House Committee on Oversight and Government ReSouth Carolina Republican Primary Saturday, January 21 form, H.R. 2309, also was pending in the House with Florida Primary Tuesday, January 31 no action scheduled. Action on both bills is expected Nevada Republican Precinct Caucuses Saturday, February 4 early in 2012. Arizona & Michigan Primaries Tuesday, February 28

By John Hatton, Legislative Specialist

JANUARY 2012 | NARFE

House Passes Bill to Honor Fallen Feds

he House of Representatives has unanimously passed legislation that would authorize federal agencies to give a U.S. flag to the next of kin, or other designee, of a civilian federal employee who is killed while performing official duties. Currently, there is no such system in place for federal employees, and H.R. 2061, the Civilian Service Recognition Act of 2011, would remedy that. NARFE President Joseph A. Beaudoin praised the November 2 action: “In an average year, 150 federal employees lose their lives when they go to work for us across the country and around the world. These are brave Americans who were doing their part for our nation. … Their loss is tragic, but the results of this legislation will at least serve as a deserved symbol of recognition of their sacrifice.” The November issue of NARFE magazine noted that passage of the bill had been stalled after a protest by the American Legion. Since that article went to print, minor revisions

STORY HIGHLIGHTS ■ The House unanimously passed a bill to authorize

federal agencies to give a U.S. flag to the next of kin, or other designee, of federal employees killed in the line of duty. ■ The bill had been stalled after a protest by the American Legion. After revisions to the bill, the Legion gave its support to the bill. were made to the bill’s language, and the American Legion has supported the revised version of the bill (see Letters, p. 43). “We are grateful to the many organizations, including the American Legion, that have made it possible for this meaningful legislation to move forward,” said Beaudoin. At press time, NARFE was joining other organizations that support the bill, requesting that the Senate expedite its passage.

By John Hatton, Legislative Specialist

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NARFE | JANUARY 2012

Legislative Report

Senate Committee Approves Bill Reducing Workers’Compensation

he Senate Committee on Homeland Security and Governmental Affairs approved a bill on November 9 that includes provisions to reduce compensation at retirement age for federal employees who have been disabled by a job-caused injury or illness. Although the bill is aimed directly at reforming the laws applicable to the U.S. Postal Service, the reductions in workers’ compensation apply to all federal workers. NARFE President Joseph A. Beaudoin said, “The overall goal of the legislation was to strengthen the U.S. Postal Service — not weaken protections granted to all federal employees who are hurt while serving their country. A proposal to strand our nation’s disabled federal workers when they reach retirement age does not belong in this legislation. This ill-conceived plan must not move forward when the full Senate debates the issue.” Sen. Susan M. Collins, R-ME, had pushed strongly to include the provisions, which modify the Federal Employees’ Compensation Act (FECA), in the postal bill, S. 1789. The 21st Century Postal Service Act of 2011 was officially introduced by Sen. Joseph I. Lieberman, I-CT, on November 2, but was the result of a compromise with the bill’s cosponsors, Sens. Collins; Thomas R. Carper, D-DE; and Scott P. Brown, R-MA. The bill would reduce the basic compensation benefit for FECA recipients from 66-2/3 of salary to 50 percent – a 25 percent reduction – when they reach retirement age. It also

Senate’s Tentative 2012 Schedule Date Jan. 23 Feb. 20-24 April 2-13 April 30-May 4 May 28-June 1 July 2-6

STORY HIGHLIGHTS ■ A Senate committee has approved legislation that

would reduce workers’ compensation for feds when they reach retirement age. The provision was included in a postal reform bill. ■ Current recipients who are permanently and totally disabled would receive no reduction in benefits. ■ NARFE calls the workers’ compensation provision “ill-conceived.” would eliminate augmented compensation for individuals who are married or have dependents, lowering compensation from 75 to 66-2/3 percent of salary for individuals below retirement age (an 11 percent reduction) and from 75 to 50 percent of salary for individuals of retirement age (a 33 percent reduction). The legislation does contain some significant exceptions to these benefit reductions. Current recipients who are permanently and totally disabled would receive no reduction in benefits. If an individual has been totally disabled for the three years prior to enactment, he or she would qualify for this exception. Also, current recipients who are married or have dependents, and are age 65 or older and not perma-

House’s Tentative 2012 Schedule Date Jan. 17 Jan. 23-25

Retreat, 25-27)

Action Convene (Martin Luther King, Jr. Holiday,

Feb. 20-24

16)

March 11-16 April 2-13

State Work Period (Presidents Day, 20) State Work Period State Work Period State Work Period (Memorial Day, 28) State Work Period (Independence State Work Period (Labor Day, 3) Federal Holiday (Columbus Day) Federal Holiday (Veterans Day observed)

District Work Period (Presidents Day, 20)

District Work Period District Work Period (Passover, 7; Easter, 8)

May 21-29 June 11-15 July 2-6

District Work Period District Work Period (Flag Day, 14) District Work Period (Independence Day, 4)

Day, 4)

Aug. 6-Sept. 7 Oct. 8 Nov. 12

Action Convene (Republican Retreat, 19-21) District Work Period (Democratic

Aug. 6-Sept. 7 Sept. 24-28 Oct. 8-Nov. 12 Nov. 19-23

District Work Period (Labor Day, 3) District Work Period District Work Period (Election Day, 6) District Work Period (Thanksgiving, 22) JANUARY 2012 | NARFE

nently and totally disabled, would receive an 11 percent reduction rather than a 33 percent reduction in benefits. FECA benefits are intended to compensate federal employees for work-related injuries and illnesses – to fairly make up for income they would have received had their public service not been cut short by an unforeseen job-related injury or workplace-induced illness. In exchange for their benefits, FECA recipients lose their right to sue the government for their work-related disability. The legislation’s reductions in retirement age compensation fail to take into account the disadvantages in preparing for retirement faced by those employees who have suffered a debilitating injury or illness as a result of their public service. Specifically, injured employees lose the ability to increase the salary upon which compensation is based through raises and promotions. They also can no longer receive matching contributions to their Thrift Savings Plan accounts, and they lose the ability to earn credits toward their Social Security benefits.

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In a letter to members of the Senate committee, Beaudoin argued that “FECA reforms should focus on saving money by improving the workers’ compensation process and structure, and not by reducing compensation to employees injured or made ill by their jobs.” Sen. Daniel K. Akaka, D-HI, agreed and offered an amendment to remove the workers’ compensation reductions from the bill. But that amendment failed by a vote of 6-11. Sens. Carl Levin, D-MI; Mark Pryor, D-AR; Mary L. Landrieu, D-LA; Jon Tester, D-MT; and Mark Begich, D-AK, all joined Akaka to vote in favor of the amendment. Cosponsors Lieberman, Collins, Carper and Brown opposed the amendment, along with Sens. Claire McCaskill, D-MO; Tom Coburn, R-OK; John McCain, R-AZ; Ron Johnson, R-WI; Rob Portman, R-OH; Rand Paul, R-KY; and Jerry Moran, R-KS. At press time, the House was considering a reform bill, H.R. 2465, that would not reduce benefits for injured employees under FECA.

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NARFE | JANUARY 2012

Legislative Report CIVICS 101:

THE INFORMED CITIZEN

Elections: Plan,Organize,Watch,Vote

anuary launches a year crowded with political events. Primaries and debates are opportunities for NARFE to harness its numbers and representational structure for maximum benefit. Use the adjacent chart and others on pp. 14 and 16 to begin to fill your 2012 NARFE Calendar with important dates (use pencil as these dates are subject to change).

STORY HIGHLIGHTS ■ Planning early will pay dividends as the election

calendar plays out. ■ Chapter, district and federation officers must

organize and collaborate throughout 2012. ■ Use websites for updated information and crucial

details.

DECEMBER 16 DEADLINE At our press deadline, the 12- member Joint Select Committee on Deficit Reduction (supercommittee) had reached its deadline without overcoming the great partisan divide that defines current Washington. The fallback feature of the statute creating the supercommittee requires sequestration in security and nonsecurity accounts. The fragile economy is spared immediate impact; the sequestration is to begin in 2013. The next deadline (occasion for brinksmanship) is December 16, when the newest appropriations continuing resolution expires. This deadline was set by the November 18 enactment of the previous continuing resolution.

NARFE members and chapters in order to exert maximum impact leading up to state primaries and the general election. Forty-one federation conventions during 2012 will draw NARFE’s heaviest hitters – officers and activists. Harness your convention’s powerful audience to speak on behalf of all current and future federal retirees. Use the broad community structure of NARFE to command the participation of elected officials and competing candidates for the House, Senate and even governor. With proper planning and allowing enough lead time, invited candidates will appear or send surrogates. Campaigns will be in their “most eager to please” mode and may pledge to support NARFE.

ELECTION CALENDAR The table on the adjacent page provides primary dates (for 54 jurisdictions) and runoff dates (10 states). In 20 states, the presidential and state primaries are held simultaneously. In 16 states, the presidential primary is now set to occur earlier and separate from the state primary. Thirteen states conduct state caucuses to elect party convention delegates. There are Senate elections in 33 states; 12 states and two territories elect governors. There are 14 states without a statewide election (for either Senate or governor). The primary schedule comes from the Federal Voting Assistance Program run by the Defense Department to assist both military and civilians abroad in participating in primary and general elections.

REDISTRICTING: CHALLENGE AND OPPORTUNITY Chapters will need to organize earlier and coordinate more closely due to redistricting in the 43 states with more than one congressional district. Justice Department clearance and court challenges create additional uncertainty. Clearly, federation conventions will be crucial for organizing

LAME-DUCK SESSION However busy the lead-up to the November 6, 2012, elections, a perfect storm may compel a lame-duck session of Congress. The elements of the storm are: approaching January 2013 sequestration, the 2013 expiration of all Bush tax cuts and the possible need to extend the debt limit again. 2012 will be a very busy year.

INTERNET RESOURCES The Federal Voting Assistance Program will continuously update its 2012 election dates (www.fvap.gov). The National Conference of State Legislatures (www.ncsl.org) provides early voting information vital to ensuring all NARFE members get to vote. The National Association of Secretaries of State (www.nass.org) provides information and links to each state’s election officer. The Commission on Presidential Debates (www.debates.org) will announce formats for the four debates in the first part of 2012, as well as plans for Internetbased initiatives. Congressional Quarterly (www.cq.com) offers a free “Daily Briefing” by e-mail.

By Christopher Farrell, Legislative Representative JANUARY 2012 | NARFE

2012 Primary Elections by State

Chart courtesy of Federal Voting Assistance Program

NARFE | JANUARY 2012

2011 NARFE’S YEAR IN REVIEW

by Donna J. St. John Assistant Editor

ast year was an unprecedented one for NARFE. The Association marked its 90th anniversary on February 19, continuing a year-long celebration that was kicked off at the 31st Biennial National Convention in Grand Rapids, MI. Assaults on the earned benefits of federal workers

and retirees also rose to an unprecedented level in 2011. But the Association succeeded in doing what it has done best as it was faced with the most challenging fight in a generation: defending and protecting your earned benefits. Early in the year, NARFE began urging members to focus on items in the Washington agenda, including proposals to slash spending, the president’s budget, the congressional budget resolution and the debt limit. As the year progressed, legislators began to look for ways to reduce the federal deficit, and federal workers and retirees became easy targets as cuts in federal pay and benefits were proposed. The image of federal workers also took a beating with unfair and inaccurate portrayals in the media and by biased think tanks. To counter these attacks, in March, NARFE launched the “Protect America’s Heartbeat” campaign.

NARFE ADVOCACY AND GRASS-ROOTS EFFORTS Protect America’s Heartbeat is a national advocacy and communications campaign to fight efforts to cut the pay, and health and retirement benefits of active and retired federal workers who have dedicated their lives to protecting America’s heartbeat. The campaign also focuses on pushing back against the unfair and inaccurate attacks on their reputations by increasing awareness of the value of the public service performed by federal workers. In the area of advocacy, NARFE members were given guidance on how to meet with and send letters to their members of Congress. Organizers also provided assistance to federations and chapters in key states. A new website offers an easy way to sign a petition and send messages to Congress, as well as a toolkit, which includes talking points, fact sheets and a media guide. Federal workers and retirees post their stories about their government service on the website. In the area of communications, expanded media outreach and advertising in-

JANUARY 2012 | NARFE

October brought about a flurry of Capitol Hill rally and activity as NARFE responded to the met with members of various congressional committee recCongress. ommendations to the supercomNARFE asked all mittee, issuing a statement expressing members to call the concern about plans to lower the naWhite House, and tional debt at the expense of federal their senators and repemployees. Letters also were sent to resentatives on July the leadership of several committees 27. Members were and subcommittees, specifically adurged to defend their Former NARFE Legislative Director Dan Adcock is interviewed as dressing their proposals to the superbenefits and let their part of the Association’s national effort to educate the public on committee, which would have a devvoices be heard. the contributions of federal workers and retirees. astating impact on federal workers In August, the and retirees. president signed the debt-limit comcreased NARFE’s profile and provided NARFE set November 2 as “Napromise, which gave federal emopportunities to refute false reports tional Call Congress Day” and urged ployees and annuitants a reprieve in about federal employees and retirees, as federal retirees and employees to call the debt-limit deal. This victory was, well as educate the public about their their members of Congress to make in large part, due to the success of the invaluable contributions to American sure they know that those who protect Protect America’s Heartbeat camsociety. As a result of the Protect America’s heartbeat won’t sit still while paign, and NARFE members who America’s Heartbeat campaign: they are singled out for unfair cuts by placed calls and sent e-mail messages • More than 280,000 online mesthe congressional supercommittee. to their legislators. These efforts also sages were sent to Congress and the The supercommittee failed to reach included face-to-face meetings with president; a bipartisan agreement to reduce the lawmakers and letters to the editor • 40 letters to the editor were pubfederal deficit by its November deadline. sent to local newspapers. “Grass-Roots lished; In the event that the supercommittee Advocacy Month,” also in August, re• 3,500 letters were hand-delivered did not succeed, the debt-compromise sulted in meetings with members of to members of Congress; law will trigger automatic across-theCongress in their home districts • 25,000 phone calls were made to board spending cuts (known as sequesduring the congressional recesses. Congress and the White House; • 75 meetings with senators and representatives or their staffs were held; and • Partnerships with coalitions were strengthened. On Capitol Hill, NARFE also represented federal workers and retirees throughout the year, presenting testimony, issuing statements and sending letters advocating NARFE’s position to members of Congress. (See the sidebar, p. 23, for a roundup of NARFE Headquarters’ advocacy efforts on behalf of the federal family.) NARFE’s Legislative Training Conference, held in March, drew nearly 300 members, the most attendees in recent Rep. Gerry E. Connolly, D-VA, addresses some 300 attendees at the 2011 NARFE Legislative memory. In addition to workshops and Training Conference as NARFE President Joseph A. Beaudoin, center, and Vice President Paul H. Carew listen. speakers, members also attended a NARFE | JANUARY 2012

2011

NARFE’S YEAR IN REVIEW

tration) in discretionary and some entitlement programs, starting in 2013. NARFE issued a statement expressing disappointment in the supercommittee’s failure to reach agreement, but vowed to continue to advocate on behalf of federal workers and retirees, as well as keep members informed on any threats to their benefits.

MEMBER SUPPORT In an effort to reach active federal employees and recent retirees who choose not to participate in more traditional forms of membership, such as chapters and clubs, NARFE established eNARFE membership. eNARFE offers members an online, paperless (except for the magazine) form of membership and is designed to parallel the traditional NARFE membership. In another nod toward social networking, NARFE now has a presence on Facebook.

NARFE implemented several initiatives to increase membership during the year. One was the Lapsed Member Telemarketing Campaign. Some 1,050 members renewed — a 18.3 percent conversion rate. To provide members with the latest tools to plan their retirement, NARFE, in partnership with Economic Systems Inc., announced the availability of a members-only, online retirement benefits calculator and financial planner at a discounted price. eSeminar Plus is believed by many retirement experts to be the best. Previously, the program was available

only to federal agencies. Throughout the year, NARFE Headquarters issued a series of Legislative Hotline messages and action alerts, with guidance on contacting congressional representatives, setting up faceto-face meetings and attending town hall meetings. Instructions also were provided – in Hotline messages, robocalls and in NARFE magazine – for “National Call-In Day” on July 27 and Call Congress Day on November 2. NARFE’s Retirement Benefits Service Department handled some 600 inquiries a month in 2011, through phone calls, e-mails and letters. The staff, experts in retirement benefits, answered questions and provided assistance, ensuring that members make informed decisions and receive their earned benefits. In addition to health, financial and lifestyle features, NARFE magazine brought to members analyses of the National Commission on Fiscal Responsibility and Reform, the debtceiling debate, the balanced budget amendment, the supercommittee deliberations and the vote on the supercommittee’s proposed legislation. Articles also highlighted NARFE’s 90 years of service, and reported on NARFE’s Legislative Program for the 112th Congress, NARFE’s Legislative Training Conference, Open Season changes, and the status of other bills affecting federal workers and retirees. Some 60 employees at NARFE Headquarters serve the membership as well as the national officers. Federations and chapters were particularly active this year in concert with Headquarters’ efforts to energize members to participate in the Protect America’s Heartbeat campaign, National Call-In Day and Call Congress Day, and other initiatives de-

NARFE’s National Call-In Day in July resulted in nearly 21,000 calls to Congress. A second call-in day was held on November 2.

signed to promote the Association’s objectives on a local and regional level.

OUR MEMBERS In addition to contributing to the success of NARFE’s Protect America’s Heartbeat campaign and other grassroots initiatives, NARFE members continued to make a mark in their communities through their volunteer activities. Glenn Turner, a member of NARFE Chapter 227 in Nashville, TN, received the 2010 GEICO Retiree Award for Public Service at a May 2 ceremony. He was recognized for his volunteer work with wounded returning combat veterans. During the first month of its 90th year, NARFE exceeded its goal of raising $9 million for Alzheimer’s research through the generosity of NARFE members. NARFE had funded 53 scientific research projects at year’s end. In partnership with the Federal Employee Education & Assistance Fund (FEEA), the NARFE-FEEA Disaster Fund provides emergency assistance to NARFE members who are victims of a declared natural disaster. Supported by donations from NARFE members, the fund distributed grants to NARFE members in states affected by devastating JANUARY 2012 | NARFE

NARFE’s Advocacy Efforts

hroughout the year, NARFE represented the federal family on Capitol Hill, presenting testimony or submitting testimony for the record. In addition, NARFE issued numerous news releases, and sent letters to committees and key members of Congress, outlining NARFE’s position on bills that would have an adverse effect on federal workers and retirees. Below is a summary of the congressional hearings. NARFE submitted testimony for a March 9 House Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy hearing, asserting that claims that federal workers are paid more than private-sector workers are false and based on flawed data. On April 13, NARFE submitted testimony for a hearing by the House Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy, urging subcommittee members to reconsider shifting recipients of benefits under the Federal Employees’ Compensation Act to the federal retirement system when they reach retirement age. NARFE’s position is that such a move would have a significant financial impact on disabled public servants. On May 26, NARFE submitted testimony for a House Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy hearing, opposing bills that would reduce the size of the federal workforce, calling for more thoughtful reform rather than across-the-board cuts. NARFE President Joseph A. Beaudoin testified before the Senate Subcommittee on Oversight of Government, the Federal Workforce, and the District of Columbia on July 26, urging senators not to strip compensation benefits from federal workers disabled by work-related injuries once they reach retirement age. NARFE voiced support for a House bill that would make improvements in the program without cutting these benefits. On July 27, Beaudoin returned to Capitol Hill where he testified before the NARFE President Joseph A. Beaudoin visits with Sen. Daniel K. Akaka, D-HI, House Subcommittee on Federal Workforce, U.S. Postal Service and Labor following the July 26 hearing. Policy. He stated that federal employees should be able to put annual leave and bonuses into their Thrift Savings Plan (TSP) accounts. NARFE worked with legislators some 25 years ago to create the TSP and continues to advocate for enhancements to this program.

tornadoes and floods in the spring, and later in the summer to those affected by Hurricane Irene and Tropical Storm Lee. The NARFE-FEEA Scholarship Awards Program, also supported by NARFE members, distributed 60 scholarships during 2011. A total of $726,000 has been awarded since the

program began in 1998. Silver Circle donations during 2011, where members can support NARFE beyond the norm, raised the total to more than $100,000. Sue Warner, service officer of Lincoln Home Chapter 402 in Springfield, IL, was chosen the 2011 National

Service Officer of the Year. She was selected from among all the winners in NARFE’s 10 administrative regions. And what is believed to be a first: Cindy Renee Blythe was elected president of the Kansas Federation — the first active federal employee to be elected a federation president.

THE YEAR AHEAD

Representatives of NARFE Nevada delivered nearly 1,000 letters to the in-district office of Sen. Harry Reid. From left: Bill Dwyer, Chapter 423; Jim Mackie, Chapter 2031; Janice Miller, Reid’s liaison for senior issues and outreach; Rob Elliot, Reid’s Southern Nevada regional director; and Bruce Bacon, Nevada Federation immediate past president.

NARFE | JANUARY 2012

Clearly, federal worker and retiree benefits will remain in the bull’s-eye. As decisions continue to be made about the future of federal programs and services, as well as federal employee and retiree benefits, NARFE Headquarters will stay focused on continuing the fight to protect your earned rights and benefits, and eliciting your help in the process. NARFE pledges to stay strong as the Association soon enters its 91st year of service to federal workers, retirees and their survivors. ■

BETTING ON NARFE IN

RENO-SPA 32nd National Convention

ARFE HELD ITS FIRST convention in June

1950, with delegates from across the country and the Philippines convening in Washington, DC. Then President Elmer Johnson noted that “this meeting of June 16 and 17 laid the groundwork for a promising future.” NARFE President Joseph A. Beaudoin says, “Our upcoming convention should prove a pivotal one for us, as the Association and the federal family continue to face daunting challenges. But I look forward to what I know will be a productive convention as we continue the legacy of our founders.” The 32nd National Convention will be in Reno-Sparks, NV, August 26-30. This year’s theme is “NARFE: Our Best Bet for the Future.”

REGISTER ONLINE Starting in January, you can pay for your convention registration and banquet tickets online at www.narfe.org. You also can still make your reservations by mail (see form, p. 26). Convention planners emphasize that delegate voter registration forms (C/12-2) must be filled out by chapter secretaries and returned to NARFE Headquarters to enable delegates to vote at the convention. Merely checking a box on the convention preregistration form does not qualify a convention attendee to be a voting delegate.

CONVENTION SITE The convention will take place at John Ascuaga’s Nugget Casino Resort in Sparks, NV, in the Sierra Nevada. This stateof-the art hotel is three miles from Reno. The main portion consists of two 29-story towers, with vistas of the mountains and surrounding valley. Amenities include a salon, spa, eight award-winning restaurants, an indoor swimming pool, shops, a casino and a nightclub. All rooms are subject to a $3 per room per night resort fee, which includes round-trip shuttle transportation to and from the Reno-Tahoe International Airport; unlimited use of the pool and fitness center; full-service concierge; and valet and self-parking in a secured, covered parking structure. All convention activities will be held at the hotel. Note: The convention banquet takes place from 6 p.m. to 11 p.m. on Thursday, August 30, so hotel reservations will be required for the night of August 30 if you plan to attend the banquet.

THINGS TO DO Known as the Rail City, Sparks was founded in the early 1900s by the Southern Pacific Railway Company. The convention hotel is across from downtown’s Victorian Square. Sparks maintains several recreation areas, including Sparks Marina Park, with a lake, swimming, boating and beaches, as well as a 2-1/4 mile paved path. The Outlets at Legends is a

Photos courtesy of the City of Sparks, the Reno-Sparks Convention and Visitors Authority, VisitRenoTahoe.com and John Ascuaga’s Nugget Casino Resort.

Reno-Sparks, NV August 26-30, 2012 HOTEL RESERVATIONS

RKS

Hotel reservations may be made by phone with the convention hotel (to get the NARFE rate,you must mention the NARFE Convention) or online at www.januggetsecure.com/jump/1190/.

JOHN ASCUAGA’S NUGGET CASINO RESORT 1100 Nugget Ave. Sparks, NV 89431 800-648-1177 - www.janugget.com HOTEL RATE: $95 single/double + 13.5% county tax. Triple and quad occupancy rates are an additional $10 per person over the quoted rate. Rates apply three days before and three days after the arrival and departure dates, based on availability. PARKING: Valet and self-parking;rate included in the $3 per room per night resort fee. RESERVATION CUTOFF DATE: July 20 CHECK-IN: 3 p.m. CHECK-OUT: 11a.m.

Top: Reno at twilight. Right: John Ascuaga’s Nugget Casino Resort in Sparks is a fourstar resort only a 10-minute drive from Reno-Tahoe International Airport. Far right: The hotel is across from downtown Victorian Square.

shopping and entertainment destination. Reno, Sparks’ sister city, features the Truckee River Arts District, with two main shopping and dining hubs. The Historic Reno Preservation Society’s walking tours provide a glimpse into the history, art, architecture and culture along the Truckee River Corridor. The Nevada Museum of Art hosts a permanent collection of 19th-20th century art, as well as special exhibitions. The National Automobile Museum is ranked one of the top 10 automobile museums in the country. Other nearby destinations: Visitors to Virginia City can visit Old West saloons, shops and museums, and ride on a stagecoach, horse-drawn carriage, trolley, or the Virginia and Truckee Railroad. Nevada’s capital, Carson City, is home to the Nevada State Museum, which showcases the state’s natural and cultural heritage, and the Nevada State Railroad Museum. Tahoe, where Nevada and California meet, is less than an hour from Sparks. Cruises on the largest alpine lake in North America are offered several times a day. NARFE | JANUARY 2012

START NOW To help federations, chapters and delegates plan for the convention, page 27 provides information and deadlines for candidate statements, committee assignment requests, delegate forms, resolutions and registration. NARFE will mail important convention-related information to chapters. Convention-goers are urged to prepare in advance to get the most out of the convention experience and ensure that they make the most meaningful contributions possible. Proposed revised Bylaws and resolutions will be published and mailed to all chapters and delegates prior to the convention. These documents also will be available online on the NARFE website, www.narfe.org. ■

NARFE 2012 NATIONAL CONVENTION PREREGISTRATION FORM NARFE ID #:

32ND NATIONAL CONVENTION August 26-30, 2012 PLEASE CHECK: ■ (Guest) Member ■ (Guest) Nonmember

Name:

■ Delegate* ■ Delegate-at-Large* ■ Alternate*

*NOTE: This is NOT a voter registration form. Voter registration is confirmed by your chapter on Form C/12-2.

Address:

Mail Preregistration Form to: NARFE, Treasurer’s Office 606 N. Washington St. Alexandria, VA 22314-1914

Name for badge: Chapter #:

■ A nonrefundable fee of $65 (payable to NARFE) must accompany this form. ■ Onsite registration fee will be $80 in Reno-Sparks. ■ Each attendee must complete a separate registration form. ■ Form must be postmarked by August 2, 2012.

Location:

■ Charge to my credit card

Notify in case of emergency:

Card type: ■ MasterCard ■ Visa ■ Discover ■ AMEX

Name:

Card# __________________________________________ Phone Number:

Expiration Date_______ / _______ (mm) / (yy)

Name on card (Print) _______________________________ Signature ________________________ Date __________

Form C/12-4

BANQUET RESERVATION FORM August 30, 2012

32ND NATIONAL CONVENTION August 26-30, 2012 ■ Tables will be assigned on a first-come, first-served basis. Tables seat 10 people. ■ RESERVATIONS LIMITED TO 2,000 PEOPLE. ■ Groups wishing to sit together should submit only one request specifying number of seats desired. Please attach name list. ■ A receipt will be mailed to you by August 2 acknowledging payment and showing your table assignment. ■ All banquet tickets will be held for pickup at the convention registration area at John Ascuaga’s Nugget Casino Resort. ■ BANQUET REFUNDS AVAILABLE ONLY IF RESERVATIONS ARE CANCELLED 72 HOURS PRIOR TO THE BANQUET.

NARFE ID #: Name: Address:

Chapter #: Nonmember Guest: Please reserve _____ tickets at $50 each, total $_____.

■ Charge to my credit card Card type: ■ MasterCard ■ Visa ■ Discover ■ AMEX

Make check payable to NARFE and send to: NARFE, Treasurer’s Office 606 N. Washington St. Alexandria, VA 22314-1914

Card# __________________________________________ Expiration Date_______ / _______ (mm) / (yy)

Name on card (Print) _______________________________ Signature ________________________ Date __________

Form C/12-16

JANUARY 2012 | NARFE

Convention Deadlines CANDIDATE STATEMENTS: BEGINNING FEBRUARY 1 NARFE’s National Officers – President, Vice President, Secretary and Treasurer – and the 10 regional vice presidents will be elected during the convention. Candidates may submit their qualifications and/or platforms for NARFE magazine publication. Candidate statements will be published in the April, May, June and July issues, and will be placed on the NARFE website, www.narfe.org. They must be limited to 400 words and will be published only once. Statements should be typewritten and may be e-mailed to rl@narfe.org as a Word attachment. No copy corrections will be made, including spelling, so statements should be carefully proofread before submission. Candidates may submit a head-and-shoulders photograph for publication with their statement in NARFE magazine; color photographs are preferred. Such photographs must accompany the statements. Photos may be e-mailed in JPG format. Photocopies, negatives and Polaroid photographs cannot be accepted. Deadlines for candidate statements in NARFE magazine are: April NARFE magazine, February 1 May NARFE magazine, March 1 June NARFE magazine, April 1 July NARFE magazine, May 1. Candidates are also entitled to send statements via GEMS, the NARFE e-mail messaging system. Statements must be limited to 400 words and may be sent twice between February 1 and July 31. Send statements as a Word attachment and e-mail to gems@narfe.org. For technical questions, contact NARFE Information Technology Director Fred Hamidzada, 703-838-7760, ext. 259.

COMMITTEE ASSIGNMENT REQUESTS: MARCH 1 Delegates wishing to be appointed to a National Convention committee must submit their requests on Form C/1222, Request for Committee Assignment, to their chapter presidents. The chapter presidents will then submit the requests to their respective federation presidents. The federation presidents will send the requests to the regional vice presidents, who then, along with their recommendations, will submit the forms to the Office of the National President. After reviewing the requests and considering the regional vice presidents’ recommendations, the National President will appoint the committees. Requests must follow the above-mentioned procedure and must be received by the Office of the National President no later than March 1. Candidates for national officer or regional vice NARFE | JANUARY 2012

president positions will not be assigned to certain committees (see C/12-22). The convention committees are: Ballot & Teller, Credentials, Legislative, Membership, Resolutions, Rules, Sergeantat-Arms, Secretaries and Timekeeper. (The NARFEAlzheimer’s National Committee and the Bylaws Committee are standing committees.)

RESOLUTIONS: NO LATER THAN MAY 15 All resolutions must be received by the Office of the National Secretary no later than May 15. This deadline is essential if NARFE is to comply with publication requirements set down in Article IX, Section 2A, of NARFE’s National Bylaws. Information regarding procedures and forms will be published in the February issue of NARFE magazine.

DELEGATE FORM: JUNE 30 PROXY FORM: AUGUST 11 Chapters should appoint or elect convention delegates as soon as possible. Form C/12-2, Designation of Chapter Delegates, Voting Representative and Proxy, will be mailed to all chapters in late April. When completed, this form must be signed by both chapter president and chapter secretary. When used to designate chapter delegates and the voting representative, Form C/12-2 must be received by the Office of the National Secretary no later than June 30. If a chapter does not send a delegate to the National Convention, a proxy delegate may be selected to represent it. Chapters wishing to designate a proxy delegate must submit Form C/12-2 to the Office of the National Secretary no later than August 11. None will be accepted if postmarked after that date. A delegate cannot hold proxies for more than three chapters.

REGISTRATION: POSTMARKED BY AUGUST 2 The registration fee for all convention attendees is $65 if Form C/12-4, Preregistration, is used and payment is postmarked or submitted online no later than August 2, 2012. The onsite registration cost is $80. Banquet tickets are $50 per person. They are available on a first-come, first-served basis. Refunds will be available only if reservations are canceled at least 72 hours prior to the banquet. The Preregistration (C/12-4) and Banquet Reservation (C/12-16) forms appear in this issue of NARFE magazine, p. 26, and are available online at www.narfe.org. ■

Managing Money

Going for the Gold? By Mark A. Keen, CFP®

ou can hardly drive down the street, turn on the TV or read a magazine without coming across someone offering to buy or sell gold. You may have noticed some advertisements for gold coins in this very magazine. In fact, a few members have expressed concern that these may be scams preying on the elderly. To that point, I wanted to write about the gold coins offered for sale in NARFE magazine and elsewhere, and my experience with one of the advertisers. In the coin world, coins can be broadly classified into two categories – collector coins and bullion coins. A bullion coin derives its value from its weight in a specific precious metal, such as gold, plus a small premium due to the cost of fabrication and distribution. A collector coin, on the other hand, will sell at high premiums due to factors such as mintage, rarity, condition and age. NARFE magazine has run several coin ads recently. But with gold getting all the attention, I am going to focus on the ads for gold bullion coins, specifically American Eagle Gold Bullion Coins, which are the official gold bullion coins of the United States Mint. American Gold Eagles are produced using gold mined in the United States and are the only bullion coins whose gold weight, content and purity are guaranteed by the U.S. government. You know exactly how much gold is in each coin because the coins are imprinted with their gold content and legal tender value – which is more or less symbolic, as the coins sell for much more due to the value of the gold.

American Gold Eagles are produced in four sizes, so they should fit the budget of anyone looking to invest in gold. There is the 1/10-ounce gold coin, with a legal tender of $5; the 1/4ounce gold coin, with a legal tender of $15; the 1/2-ounce gold coin, with a legal tender of $25; and the 1-ounce gold coin, with a legal tender of $50. And because the coins contain their exact stated amount of gold, to know

from whom you can buy and sell various types of coins. But be careful, and do your research to find a reputable dealer who will treat you fairly and honestly. If you’re in the market for bullion coins, make sure you know the current spot price for gold (or any other precious metal you may be looking to invest in), so you know how much of a premium a particular dealer is charging for the bullion coins.

IF YOU ARE interested in investing in coins,ask for a referral,do your research and compare dealers. the approximate value of your collection, you simply have to know the spot price of gold – which can be easily found in newspapers and on the Internet. Furthermore, they are the most widely traded bullion coins in America, providing gold investors with ample liquidity and narrow spreads between buy-and-sell prices. For those who want to include gold in their individual retirement account (IRA), the American Eagle Gold Bullion Coins may be held in an IRA as well. Of course, you’ll have to find a custodian who will take physical delivery of the coins, and the fees on such an account can be high. Other gold bullion coins, such as the South African Krugerrands, Gold Maple Leafs, Mexican 50 Pesos and the Austrian 100 Coronas, have liquid markets and also may be a good gold investment. There are literally thousands of dealers – from brick-and-mortar stores to Internet stores to auction websites –

To find a dealer, visit the United States Mint’s website, www.gov mint.com, which provides information on the various coins it produces, as well as a list of national and local bullion dealers. If you don’t want to use the Internet, you can pull out the phone book and, per the Mint’s website, look under “Coins” or “Gold” to find a local dealer near you. Because I wanted to see how good a deal the offers in NARFE magazine were, before calling the advertisers, I visited the websites of several dealers I found on the Mint’s website to compare offerings and prices. Once I felt I was armed with enough information, I called one of the companies advertising the 1/10-ounce American Gold Eagle coins in NARFE magazine. The $199 “at cost offer” wasn’t the best price I found, but it wasn’t the worst either. In addition, there is a shipping, handling and insurance charge of $38, bringing the total cost of one coin to $237. Note: The $38 shipping and JANUARY 2012 | NARFE

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Mark A. Keen, CFP®, is president and owner of Bennett Financial Advisors, 3600 Chain Bridge Rd., Fairfax,VA, and an investment adviser representative and registered principal of The Strategic Financial Alliance, Inc. (SFA). Securities and advisory services are offered through SFA. E-mail: mkeen@tributaryadvisors.com. NARFE | JANUARY 2012

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handling fee is per order, whether you buy one coin or the maximum 10 allowed. My conversation started out discussing the American Gold Eagles as advertised. But after a few minutes, the salesman explained that they also sold certified and graded coins – “collector pieces with limited production and increased value.” I was wooed with limited mintage information to insinuate exclusivity, rarity and demand. I was OK with that, as the information appeared factual, and I knew it was his job to sell the coins. However, when the salesman began making what I felt were speculative and potentially exaggerated claims, I was more than dumbfounded. For example, he made statements such as, “… I know that within the next 24 to 36 months, the value (of certified coins) will be double and triple”; and “certified coins don’t lose value, they pretty much stay the same – in fact they can go up – when the price of gold goes down.” If gold goes on another run, it’s possible for these statements to play out true. But that’s a big if – no one knows where the price of gold, or anything else for that matter, is headed in the future. My recommendation is, if you’re interested in investing in coins, ask for a referral, do your research and compare several dealers. And remember: Predictions are the world’s cheapest commodity.

LiveWell

Preventing Falls and Fractures By Marilyn S. Radke, M.D.

alls are the number one cause of broken bones, hospital admissions for trauma, loss of independence, and injury deaths among older adults. More than one in three adults age 65 and older falls each year, and the risk of falling increases with age. Broken hips are a leading cause of injury and loss of independence among older adults. Only half of older adults hospitalized for a broken hip are able to return home or live on their own after the injury. Falls also can cause broken bones in the pelvis, spine, arm, hand or ankle. The following factors can lead to falls: • Muscle weakness in the legs; • Pain or numbness in the feet; • Poor balance or difficulty walking; • Blood pressure that drops too low on standing; • Vision problems; • Side effects of medications (dizziness, unsteadiness or confusion); • Unsafe footwear (backless shoes, high-heeled shoes and slippery soles); • Clutter on floors or stairs; • Loose rugs, slick floors or slippery walkways; • Poor lighting, indoors or outdoors; • Lack of handrails along stairs and grab bars in the bathroom; and • Carrying heavy or bulky things, especially on stairs. Take these steps to prevent falls:

• Exercise (walk, climb stairs) to maintain balance, muscle and bone strength; • Remove your reading glasses when walking; • Have your blood pressure checked when lying and standing, and your medications reviewed; • Choose shoes with backs, low heels and nonslip soles; • Remove clutter and trip hazards (pet bowls, electrical and phone cords); • Use nonslip rugs and bath mats, and avoid icy or wet walkways; • Use the highest wattage light bulb recommended for fixtures, and put night lights in the bedroom, bathroom, hallways and kitchen; • Have handrails installed on both sides of stairs and walkways, and grab bars in your tub and shower and next to the toilet; • Put often-used items within easy reach without standing on a stool; • Carry a portable telephone with you from room to room, and do not rush to answer the telephone or door; • Ask your doctor how you can get enough calcium and vitamin D; • Quit smoking and limit alcohol intake. If you are worried about falling, ask your doctor to refer you to a physical therapist to help improve your balance and walking, and to teach you how to

use the following devices, as needed: Canes should be the height of your wrist when your arm is hanging down. A cane that is too short may make you unsteady. A cane that is too long may be hard to use. Walkers give you a wide base of support to help you stay balanced. Some walkers have two wheels and work well if you need to put weight on the walker when you move. Four-wheeled walkers can be used if you do not need to put your weight on the walker for balance. Walkers without wheels are common and will not roll. Reachers or grabbers are simple tools that allow you to take lightweight items from high shelves rather than standing on a stool, and to pick up objects from the floor rather than bending down. If you fall, remain calm and take a

FALLS ARE the number one cause of broken bones,hospital admissions for trauma and injury deaths among older adults.

To Learn More

or more information,write to the National Institute on Aging, Building 31, Room 5C27, 31 Center Drive, MSC 2292, Bethesda, MD 20892; or call the National Institute on Aging Information Center at 800-222-2225 (TTY:800-222-4225);or visit the website at www.nia. nih.gov.

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Marilyn S. Radke, M.D., is board certified in preventive medicine and practices in Atlanta, GA.

Recycle NARFE “I caught the NARFE magazine while in the YMCA last week for my daily exercise. To be honest, I took the magazine home with me and read it thoroughly. I’ll be joining NARFE shortly!”

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few deep breaths to relax. If you think you can get up safely without help, follow these steps: • Roll over onto your side and rest to let your blood pressure adjust; • Slowly get up on your hands and knees, and crawl to a sturdy chair; • Put your hands on the chair seat, slide one foot forward so that it is flat on the floor, and keep the other leg bent so the knee is on the floor; • Then slowly rise from this kneeling position and turn your body to sit in the chair. If you are hurt or cannot get up, ask someone for help or call 911. If you are alone, try to get into a comfortable position and wait for help to arrive. If you are at increased risk of falling and are often alone, consider getting a personal emergency response system. This service provides a button or bracelet you wear at all times in your home and lets you alert emergency services through the phone system by pushing the button. Talk with your doctor about your risk of falling and changes you can make to prevent falls.

“My Medical Alarm saved my life 3 times!

Questions & Answers NOTE: The following Questions & Answers were compiled by Retirement Benefits Service Department staff. These are real questions received by the Department and real answers, based on the members’ personal circumstances. The answers are not universal and may include information that is relevant to the correspondent’s particular situation. NARFE does not provide legal advice or assistance, does not provide financial planning advice or assistance, and does not provide tax advice or assistance. For legal, financial planning or tax advice/assistance, NARFE recommends members contact an attorney, financial planner or certified public accountant/tax adviser.

RETIREES 1099-RS QUESTION: Is it possible to obtain a duplicate 1099-R? Response: Yes. But please wait long enough to receive your 1099-R for 2011, which should be some time in early February. The Office of Personnel Management (OPM) assumes it has a valid mailing address, and normally distributes the annuitant and survivor annuitant 1099-Rs by the end of January. You may request a duplicate if you lose the one mailed to you. If you have your CSA or CSF retirement claim number, you can contact OPM at 888-767-6738 and request a duplicate 1099-R. You also can go to the OPM website at www. servicesonline.opm.gov and use your OPM-provided personal identification number (PIN) to view, print and request a duplicate 1099-R for the current tax year and two previous years.

If your mailing address isn’t up to date, call 888-767-6738 to change your address and then request a duplicate 1099-R. You also may contact OPM and request a PIN so that you can get the document online.

TAX-FREE PORTION OF ANNUITY QUESTION:Will the Office of Personnel Management (OPM) calculate the tax-free portion of my annuity and include the information on my 1099-R? I don’t understand why this is referred to as tax-free when I already paid taxes on my contributions. Response: For most retirees, OPM provides the amount of your annuity that was tax-free on the CSA 1099-R, which you receive each year. But to use that amount in filing your returns, you need to get a copy of Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits. You can download this guide from the Internal Revenue Service (IRS) website at www.irs.gov. You also can request a copy by calling the IRS at 800829-1040. This publication includes the formula for computing the amount of your annuity that would be tax-exempt. You will have to calculate this deduction and claim it on your tax return. The IRS refers to this deduction as the tax-free portion of your annuity. But you are correct in that it is not really taxfree because you already paid taxes on your contributions before they were placed in the retirement fund.

Security benefits, you can have Medicare premiums withheld from your annuity payments. The Office of Personnel Management (OPM) cannot withhold premiums based on your direct request. You need to go to a Social Security Administration (SSA) office and complete some forms. The SSA will forward your request to OPM. Some SSA offices are not familiar with this process, but NARFE has copies of the guidance the SSA will need to act on your request. We would be happy to send these procedures to you.

SPOUSE FEHBP COVERAGE QUESTION: I am retired and have self-only coverage under my Federal Employees Health Benefits Program (FEHBP) plan. My spouse is still working in private industry and has her own health insurance,which allows us to save money on premiums.I want to make sure that my spouse will have coverage under my FEHBP plan when I die, so I have decided to switch to family coverage in an Open Season, just before she retires.Is this a good idea?

QA &

DEDUCT PREMIUMS? QUESTION: I would like to have my Medicare premiums deducted from my annuity. What do I need to do? Response: If you are not receiving Social

Response: There are two requirements that must be met to ensure that your spouse has health insurance coverage under your plan. The first is that you elected survivor’s benefits for her when you retired. The second requirement is that you have family coverage under your FEHBP plan upon your death. Currently, you are taking a risk that your spouse will not have FEHBP coverage upon your death if you wait until she retires. You will need to wait until the next annual Open Season to place her under your plan unless she loses her health coverage (for example, she resigns, drops her insurance or reJANUARY 2012 | NARFE

NARFE SERVICE OFFICERS are available to answer questions and to assist in tires). You have 30 days before the event to 60 days after the event to pick her up on your plan outside of Open Season.

TSP WITHDRAWALS QUESTION: I want to take my required minimum distribution (RMD) from my Thrift Savings Plan (TSP) and roll it over into an individual retirement account (IRA).Is this possible? Response: If you withdraw your account in a single payment or monthly payments in a year during which the RMD applies, you cannot transfer the entire payment or payments to your IRA or eligible employer plan. Instead, before transferring any money, the TSP would calculate your RMD amount and mail it directly to you (or, if applicable, to the savings or checking account designated to receive your direct deposit).

REINSTATE OWCP BENEFITS? QUESTION: I was injured on the job and applied for benefits through the Labor Department’s Office of Workers’ Compensation Programs (OWCP). I had to separate from my agency because of the injury and began receiving OWCP benefits. A few years ago, the OWCP found me recovered from my injury, so I opted for disability retirement.My injury has gotten worse. Can I have my OWCP benefits reinstated? Response: You may apply for this benefit as a recurrence of the injury, and the OWCP will decide if you are eligible to begin receiving benefits. You must establish that your injury became worse after you separated from service.

SURVIVOR’S ANNUITY QUESTION:I remarried after retirement. I understand that I can arrange for survivor’s benefits for my new wife. But she is a widow of a federal retiree and is already receiving benefits. I reNARFE | JANUARY 2012

helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. Call NARFE toll-free at

800-456-8410 for the nearest service officer. NARFE Service Centers are also available in some areas. Use the Service Center listings on the NARFE website, www.narfe.org. alize that she could not collect from both of us.But if I cover her,could she receive the larger amount that would result from 55 percent of my higher benefits instead of the lower amount received from her previous husband? Would my coverage of her now affect her present survivor‘s annuity? Response: If you remarried within the last two years, you may elect a survivor’s annuity for your new spouse. Your election would have no effect on her receipt of the current survivor’s benefit at this time. However, she may receive only one survivor’s benefit after your death. She can elect to receive the higher of the two at that time. You should consider the cost to you to provide this benefit before making such an election.

TAX DEDUCTIONS QUESTION: I am a retired U.S.Postal Service employee. Can I deduct my health insurance premium along with my other deductions? Response: We are aware of only one provision that allows federal retirees to deduct health and long-term care insurance premiums from their taxable income. Under the Pension Protection Act of 2006, retired public safety officers, law enforcement officers, firefighters, chaplains, and members of a rescue squad or ambulance crew can deduct up to $3,000 in health benefit premiums and/or long-term care insurance premiums from their taxable income. If you itemize, you also can include your health and long-term care insurance premiums as medical expenses and deduct eligible expenses that ex-

ceed 7.5 percent of your adjusted gross income.

SUSPEND FEHBP? QUESTION: I retired under the Federal Employees Retirement System (FERS) and am enrolled in the Federal Employees Health Benefits Program (FEHBP).I have a 50-percent disability rating from the Department of Veterans Affairs (VA) and receive most of my medical care through the VA. The FEHBP pays theVA, including for my medications. If I am receiving care through the VA, can I suspend my FEHBP coverage until such time as I need it again due to any unforeseen change in my VA benefit? Response: The law only allows enrollees under CHAMPVA (as well as TRICARE, Medicare Advantage and the Peace Corps) to have an authorization card to suspend FEHBP coverage as a retiree so that they can re-enroll at a later date.

ACTIVE EMPLOYEES INTERIM ANNUITY QUESTION: My agency is offering “early outs,” and I am thinking of opting for one. How long would I have to wait before receiving my annuity? Response: Be prepared to wait several months before you receive your first full annuity payment. You would receive an acknowledgement of your retirement application and a seven-digit civil service annuity (CSA) number within three weeks of your retirement application reaching the Office of Personnel Man-

Questions & Answers agement (OPM). Keep your CSA number in a safe place because you will need to use this number whenever you contact OPM. If you have not received your CSA number within that time period, your application could still be with your agency, and this could result in a further delay in processing your claim. Normally, you receive your first interim annuity payment from OPM within two months of your retirement. Interim pay is usually between 60 and 75 percent of your final pay. You may have to wait an additional four months for your claim to be finalized, and it would include retroactive pay to your retirement date. As a NARFE member, you can contact our Retirement Benefits Service Department, which will contact OPM to help expedite your claim. Because many agencies are offering early outs, you may have to wait even longer for your final annuity payment. Recognize that you will receive a lumpsum payment for your annual leave typically within 30 days of retirement. You may want to consider using as little annual leave as possible so you will have this money to cover your bills while you are in interim pay status.

VOLUNTARY CONTRIBUTIONS QUESTION: I am under the Civil Service Retirement System (CSRS) and have just learned about the voluntary contribution (VC) account. Can you explain this account to me? Response: VC accounts have been available for CSRS employees for many years. CSRS and CSRS Offset employees can contribute up to 10 percent of their lifetime federal salary to this account as long as they do not owe a deposit or redeposit for refunded CSRS retirement contributions. Those enrolled in 2011 earned 2.75 percent interest. If you owe a deposit or redeposit, you would have to pay off the deposit

NARFE now offers an online retirement calculator and other financial planning tools for members only.Find out more about this new membership benefit at www.narfe.org. or redeposit before you could contribute to the VC account. Federal Employees Retirement System (FERS) employees and CSRS retirees may not establish a VC account. You can open a VC account by filling out form 2804, available through the Office of Personnel Management (OPM). Your contributions would go directly to OPM. You can place money in the account whenever you choose, as long as you send OPM a check for at least $25. You are allowed to earn interest on the account, and you are not responsible for paying taxes on the interest earned until you retire. When you retire, you also can elect a lump-sum payment of these contributions or a supplemental annuity. The supplemental annuity would pay an additional $7 for each $100 of retirement contributions, plus 20 cents for each full year the retiree is over age 55 at the time the annuity begins. You can withdraw the money in a lump-sum payment and only pay taxes on the interest earned because the amount you placed into this account would already have been taxed. Or you could roll over the money into an individual retirement account (IRA) or your Thrift Savings Plan account to avoid paying taxes on the money until you withdraw the money from the IRA. You also can complete form 2804 and submit it with your retirement application. OPM will roll over the money into a Roth IRA as long as you do not accrue any interest on the VC account. You would use form RI 38-

124 to make your withdrawal; the form explains your options.

PUBLIC SAFETY OFFICERS QUESTION:I understand that there are special benefits for public safety officers who are killed or injured in the line of duty. Would you provide information on these benefits? Response: The Public Safety Officersâ&#x20AC;&#x2122; Benefits (PSOB) Programs are administered by the Department of Justice (DOJ). The PSOB Programs provide death and education benefits to survivors of fallen law enforcement officers, firefighters and other first responders, and disability benefits to officers catastrophically injured in the line of duty. According to the DOJ website, the PSOB Programs consist of three parts: 1. A one-time, tax-free financial benefit to eligible survivors of public safety officers whose deaths are the direct and proximate result of a traumatic injury sustained in the line of duty. The death benefit payable for eligible survivors is $323,035.75 for eligible deaths occurring on or after October 1, 2011. The benefit is adjusted each year in October to reflect the percentage change in the Consumer Price Index. 2. Benefits to public safety officers who have been permanently and totally disabled by a catastrophic injury sustained in the line of duty if that injury permanently prevents the officer from performing all gainful work. 3. Educational assistance to the children and spouse survivors of federal, state and local public safety officers JANUARY 2012 | NARFE

who were killed or permanently disabled in the line of duty. This benefit was authorized with the passage of the Police, Fire, and Emergency Officers Educational Assistance Act of 1998. The benefits are not limited to employees serving in approved law enforcement officer or firefighter positions. For these benefits, a public safety officer is a person serving in a public agency in an official capacity, with or without compensation, as a law enforcement officer, firefighter or member of a public rescue or ambulance crew. Law enforcement officers include, but are not limited to, police, corrections, probation, parole and judicial officers. The Hometown Heroes Survivors Benefits Act of 2003 expanded the circumstances under which public safety officers’ deaths from heart attacks or

NARFE | JANUARY 2012

strokes may be covered. It established a statutory presumption that public safety officers who died from heart attacks or strokes following a nonroutine stressful or strenuous physical safety activity or training died in the line of duty for benefit purposes. For additional information, contact the Bureau of Justice Assistance, Public Safety Officers’ Benefits Programs, 810 Seventh St. NW, Washington, DC 20531. You also can call 202-307-0635 (toll-free: 888-744-6513) or send an email to AskPSOB@usdoj.gov. The website is www.psob.gov.

PART B ENROLLMENT QUESTION: I am age 66 and still working.I know that there is a 10-percent late-enrollment fee on top of the Medicare Part B premium for each

year that you are not enrolled but could have been.But I heard that there is a special enrollment period without the penalty under certain circumstances. Please explain. Response: Those over age 65 and still working and who have employer-sponsored health insurance have a penaltyfree Medicare Part B special enrollment period, which lasts for eight months after they retire. As long as you enroll in Medicare Part B during the eight-month special enrollment period, you would not be subject to the 10-percent penalty.

EX-SPOUSE BENEFITS QUESTION: I am a current federal employee covered under the Civil Service Retirement System (CSRS). The divorce decree did not give any CSRS retirement or survivor’s bene-

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Perfect Choice HDTM is designed to help you turn up the volume in a variety of situations, particularly those where you want to hear what someone is saying. Most people can hear a car door slam or a helicopter overhead but understanding what people are saying can be a challenge. That’s why Perfect Choice HDTM amplifies sounds, especially consonants like G, F, and B, in the range in which most people speak. The receiver, which hides behind your ear, picks up the sounds and transmits them through the transparent hearing tube into the ear canal. It’s that simple! You can even adjust the degree of background noise cancellation depending upon if you are in a noisy or quiet situation. The volume control and pivoting hearing tube are easy to adjust and the multiple-sized ear tips let you customize the unit for comfort and performance. The unit even remembers your favorite settings, so

Affordable, Simple to use, Virtually impossible to see you don’t have to do a thing except turn it on and put it in. Even your best friends won’t know you’re wearing it unless they notice you aren’t saying “Pardon me?” or “What did you say?” Hearing is believing! Why spend another day struggling to understand what your friends, children, grandchildren– even your favorite TV characters– are saying. Perfect Choice HDTM comes with a two-month “No Questions Asked” trial period. All we request is that you try the product for at least 15 days. This will give you an opportunity to test it in a variety of situations and hear the many benefits it has to offer. After that, if you are not completely satisfied, simply return it within 60 days of the purchase date for a refund of the product purchase price. Note– Perfect Choice HDTM is a personal sound amplification product, not a hearing aid. If you believe you need a hearing aid, please consult a physician, audiologist or other properly licensed professional for a thorough hearing examination.

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Questions & Answers

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fits to my ex-wife. We both agreed to keep our own.I would now like to give my ex-wife a survivor’s annuity when I die.I have talked to an attorney,and,in Washington state,it is difficult and expensive to amend the property settlement in a divorce decree. Is there an easier way to do this? Is it possible that, when I retire, I can elect a survivor’s annuity for my ex-wife through the Office of Personnel Management (OPM), even though the divorce decree does not require one, or must the divorce decree be amended? My second concern is to make sure that my ex-wife gets a survivor’s annuity should I die prior to retirement. Is there a way I can elect a survivor’s benefit for my ex-wife without amending the divorce decree? Response: At retirement, you may elect a survivor’s benefit for a former spouse; however, if you are married at the time of retirement, your current wife must consent to the election. Only the court that approved the divorce can provide a survivor’s annuity benefit for the former spouse. An employee cannot elect to provide a survivor’s benefit for a former spouse in the event that he or she might die before retirement. If you want to protect your ex-wife if you should die as an employee, you may have the divorce decree amended, if the court approves the amendment. OPM will only accept such an amendment if it is made to the divorce decree prior to the date of your retirement.

To obtain an answer to a retirement benefits question, call 703-838-7760 and ask for the Retirement Benefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: Retirement Benefits; or submit it by e-mail to retbenefits@narfe.org. JANUARY 2012 | NARFE

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Retirement Benefits

Some Group Life Insurance Premiums Will Change in 2012

he Office of Personnel Management (OPM) has announced changes in premiums in some Federal Employees’ Group Life Insurance (FEGLI) categories for 2012. These changes will affect premiums for most age bands in Option B Additional Insurance, Option C Family Insurance and the retirees’ Post-Retirement Basic Insurance. After completing a funding and claims experience study, OPM concluded that changes in premiums were needed. The claims experience for Op-

tion B enrollees below age 75 and enrollees in Option C under age 45 indicated a slight decrease in premiums was called for. By the same token, the OPM study showed a hike was needed in the extra premium retirees pay for not having their Basic insurance amount reduced at all or reduced only 50 percent when they reach age 65. There are no changes to premium rates for Option A or employee Basic Insurance. The last FEGLI premium adjustments for Options B and C took place in 2005. The last premium change for Post-Retirement Basic occurred in 2003.

Option B Premium per $1,000 of Insurance Age Band Biweekly Monthly Under 35 $0.02 $0.043 35–39 $0.03 $0.065 40–44 $0.05 $0.108 45–49 $0.08 $0.173 50–54 $0.13 $0.282 55–59 $0.23 $0.498 60–64 $0.52 $1.127 65-69 $0.62 $1.343 70-74 $1.14 $2.470 75-79 $1.80 $3.900 80 and over $2.40 $5.200 The premiums for compensationers who are paid every four weeks are two times the biweekly premium.

The effective date of the premium changes is January 1, 2012, for retirees and others whose premiums are withheld and paid monthly, and on the first pay period on or after January 1, 2012, for those active employees paid biweekly. For the new FEGLI premium rates for Option B, Option C and the PostRetirement Basic Option, see the charts below. The rates also will be available on the OPM website, www.opm.gov, in January.

Reitrement Benefits Service Department

Option C Premium per Multiple of Insurance Age Band Under 35 35–39 40–44 45–49 50–54 55–59 60–64 65-69 70-74 75-79 80 and over

Biweekly $0.22 $0.29 $0.42 $0.63 $0.94 $1.52 $2.70 $3.14 $3.60 $4.80 $6.60

Monthly $0.48 $0.63 $0.91 $1.37 $2.04 $3.29 $5.85 $6.80 $7.80 $10.40 $14.30

Post-Retirement (Annuitant) Basic Premium per $1,000 of Insurance Election

Monthly withholding for each $1,000 of your Basic InsuranceAmt.(BIA) before age 65 75% Reduction $0.3250 50% Reduction $0.9650 No Reduction $2.2650

Monthly withholding for each $1,000 of your Basic InsuranceAmt.(BIA) after age 65 No cost $0.64 $1.94 JANUARY 2012 | NARFE

Join

NARFE

Who can join?

Today!

To apply:

Membership is open to civilians in any agency of the federal or D.C.* governments including: • Retirees • Active federal employees • Spouses and former spouses of active and retired federal employees • Former employees eligible for deferred annuity • Survivors of those eligible to join NARFE

Check out eNAR FE, ou r new electronic m embership option, at www.NAR FE .org

• Complete the application below. • Enclose payment information, bill pay, check or money order payable to NARFE, or request to be billed. • Or go to our Web site at www.narfe.org. • Or call us at 800-627-3394 and join today! *Prior to October 1, 1987

Enrollment includes membership in a local chapter and the national association, plus a subscription to NARFE’s monthly publication, NARFE magazine.

NARFE MEMBERSHIP APPLICATION For Active and Retired Federal Employees 1. Choose all that apply: Retiree Spouse Survivor

Active employee Former spouse Former employee

2. Also enroll my spouse __________________________

www.narfe.org

Contact Information:

Full Name: Mr./Mrs./Miss/Ms.

full name

3. Please enroll me in NARFE chapter ______________

Street Address

4. __________ $45 x __________ Membership Fee # of People Per Person Enrolling

City/State/ZIP

= __________ Total Payment

Total payment (check, bill pay or money order payable to NARFE) Bill me (Membership starts when payment is received) Charge to my credit card The first year membership fee includes national and chapter dues. Credit Card Information: MasterCard Card type: Discover

VISA AMEX

Card no. ___________________________________________

Apt./Unit

Phone Number E-mail Address Date of Birth Spouse’s Date of Birth (if applicable) Recruiter’s Membership and Chapter Number

Expiration Date ________________ (MM)

(YY)

Name on Card (Print) ________________________________ Signature ____________________________ Date __________

NARFE | JANUARY 2012

MAIL TO:

NARFE Member Records 606 N. Washington St. Alexandria, VA 22314-1914 Fax: 703-838-7783

1Q 39

NARFE Dues Withholding Application Retired Federal Employees Only If you are a Retired Federal Employee and you would like your NARFE dues to be deducted from your annuity payments, fill out the form below.

Dues Withholding Application (Retirees Only) Fill out this form completely and mail to: Attn: Member Records, NARFE, 606 N. Washington St., Alexandria, VA 22314 (Do Not Send Money With This Form). (Please Print) —

—

Civil Service Annuity Number

Social Security Number (9-digits)

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

(Mr., Mrs., Miss, Ms.) Address

Telephone

City, State, ZIP

E-mail

Date of Birth

NARFE Membership Number

NARFE Chapter Number

Authorization I authorize the United States Office of Personnel Management to make appropriate deductions from my annuity payments, not to exceed the amount certified by the National Active and Retired Federal Employees Association as the amount of dues for which I am annually obligated, in accordance with elections I make below and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I make below:

Do You Authorize Your Spouse’s Dues to Be Withheld from Your Annuity? If YES, enter your spouse’s name and membership number below.

Name

Number

❑ Yes

❑ No

You authorize: Annual NARFE dues of $34.00 plus Chapter dues of record to be withheld annually.

I understand that this authorization shall be valid until NARFE receives & processes my written notice of cancellation in accordance with its agreement with the Office of Personnel Management & that any disputes regarding this authorization shall be a matter between NARFE & myself. I hold the Office of Personnel Management harmless for any erroneous allotment deduction made pursuant to this authorization. Signature of Annuitant or Survivor-Annuitant

Date

Dues payments & gifts or contributions to NARFE are not deductible as charitable contributions for federal income tax purposes.

JANUARY 2012 | NARFE

NARFE News 2012 Membership Plan, Budget Approved

he National Executive Board (NEB) approved an aggressive membership growth plan for 2012 at its November 15-17 meeting at NARFE Headquarters in Alexandria, VA. The plan will be implemented in conjunction with membership marketing firm Marketing General Inc. It includes enhanced acquisition and retention strategies, as well as education for NARFE members and chapter and federation leaders on ways to improve recruitment and retention in the field. The NEB also passed the Association’s 2012 budget, which provides

funding for the new membership growth plan as well as a continued vigorous legislative campaign. “It reflects the fact that the dues increase will be fully implemented after the March renewal cycle,” noted National Treasurer Richard G. Thissen. “However,” he added, “there will be a continuing need for ‘Protect America’s Heartbeat’ campaign fund requests as well as our normal fundraising activities – notepads, greeting cards and the NARFE Photo Contest Calendar.” Assistant Editor Donna St. John briefed the NEB on recent improve-

ments to the NARFE website, including a more prominent log-in area for NARFE members on the Main Home Page and a new directional button for NARFE officers on the Members Home Page. Information Technology Director Fred Hamidzada also discussed implementation of recommendations made by the NARFE Information Technology Advistory Committee. Hamidzada demonstrated how chapter and federation presidents and secretaries will be able to make officer-roster changes online in real time, thus eliminating delays in the posting of the information. ■

Congratulations! Chapters Celebrate 50th Anniversaries

he following chapters are celebrating their 50th anniversaries this year. NARFE congratulates members of the chapters for carrying on the traditions of those members who established these chapters so long ago. We look forward to their continued success.

REGION I Geo M. Ellis-Chas E. O’Neill MA Chapter 807 Thompson Cape Cod MA Chapter 818

REGION VI Greater N Houston TX Chapter 828

REGION II Retired Firefighters DC Chapter 812

REGION III DeLand FL Chapter 817 Anderson SC Chapter 825 Ray O’Dell Homestead FL Chapter 837 REGION IV Shelbyville IN Chapter 813

REGION V Hot Springs SD Chapter 810

NARFE | JANUARY 2012

REGION VII Longmont CO Chapter 820 Loveland CO Chapter 821 Layton UT Chapter 829 Bountiful UT Chapter 830 Laramie WY Chapter 833 REGION IX Bozeman MT Chapter 843

REGION X Tri-County TN Chapter 806 New Bern NC Chapter 808 Sanford NC Chapter 826 Murfreesboro TN Chapter 834

Out & AW bout ith the Chapters

Visit our online gallery at www.narfe.org. Click on NARFE magazine.

Above: Representatives of the South Dakota Federation and the Black Hills chapters presented Sen. Tim Johnson with a plaque recognizing his support of federal employees and retirees. From left: B. Thomas Marking, John Phelan, Karen Phelan, Johnson, Bernie Christner, Richard Lolley and Larry Wilbur. Right: Members of Chapter 79 in Eugene, OR, met with Sen. Ron Wyden’s Field Representative Juine Chada to discuss NARFE concerns. From left: Tony DeVico, Lue Berg, Chada and Ruthann Couch.

Members of Chapter 310 in Newark, OH, met with Sen. Sherrod Brown at an open house at the former Newark Air Force Base. From left: Sondra Gartner, Nancy Hunt, Brown, Pat Deskins and Don Hunt.

Members of Lincoln Home Chapter 402 in Springfield, IL, met with Sen. Richard J. Durbin and presented 1,100 letters from members of the federal community in the state. From left: David Dalbey, Durbin, Sue Warner, Herb Smith and Herschel Armstrong.

To submit a photo: E-mail it to rl@narfe.org or send it by postal mail to NARFE Headquarters, ATTN: Out & About. NARFE members contributed for Alzheimer’s research:

SUPPORT ALZHEIMER’S RESEARCH

$10 Million Fund

$9,399,712* *Total as of October 31, 2011 100% of all contributed funds go to Alzheimer’s research. If you have any questions, write to: National Committee Chairman Barb L. Pretzer, 4817 Rockridge Ct. Manhattan, KS 66503 E-mail: bpretzer@ksu.edu

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

Mr.

Mrs.

NARFE-Alzheimer’s Research and mail to: Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633

Ms.

Address _____________________________________________________________ City _______________________________ State _________ ZIP ______________ Chapter number _______________________ Credit Card Information: ❑ Visa

Your charitable contribution is tax deductible to the fullest extent allowed by law. Write your chapter number on check; make it payable to:

Miss

Name _______________________________________________________________

❑ MasterCard

❑ Discover

❑ AMEX

Card Number: __________________________________________________________ Expiration Date:________(mm)/_________(yy) 3-Digit Security Code: _________ Name on Card: (print) ___________________________________________________ Signature:_________________________________________ Date: _______________ JANUARY 2012 | NARFE

Letters Flag Bill Support

Truth or Fiction?

he American Legion is now supporting a revised H.R. 2061, the Civilian Service Recognition Act of 2011 (November 2011 NARFE magazine, p. 10). The American Legion was concerned with the language that was being considered within H.R. 2061 because: a) it equated service in the military to that in the federal workforce; b) it inadequately defined eligible next-ofkin and the manner in which a flag would be presented; and c) it allowed for presentation of flags to a wide variety of federal employees and volunteers under a wide range of circumstances. We support the overall intention of this bill and are glad its sponsors, Reps.

REMINDER: Want to be a delegate to the NARFE National Convention? Contact your chapter now.

Richard Hanna (NY) and Darrell Issa (CA), took the time to make sure it is a well-written piece of legislation. Tim Tetz, Director, National Legislative Division, The American Legion

agree with your article on verifying e-mails (November 2011 NARFE magazine, p. 16), but I do wish you had added www.truthorfiction.com to your list of sites for checking information. Truthorfiction.com is always authoritative and easier to navigate than scopes.com. It specializes in e-mail rumors. Betty Bell, Anadarko, OK

Letters to the editor may be edited for grammar, clarity and length. All letters must be signed. Send by e-mail to rl@narfe.org or by postal mail to NARFE Headquarters, ATTN: Letters to the Editor.

NARFE National Life Membership Application National Life Membership offers a hedge against future dues increases and affirms a member’s ongoing support of NARFE’s mission to serve federal employees and retirees. National dues are paid for life; applicable chapter dues are billed annually. Life Membership Fee Schedule

Membership Information

Contact Information

Ages

(Active NARFE members)

Member Number:_______________________

Full Name: Mr./Mrs./Miss/Ms.

Street Address

Single or Quarterly Payment Installments

Apt./Unit

City/State/ZIP

E-mail Address

30-39 $1,796 40-40 1,408 (New members) Membership is open to civilians in 1,127 any agency of the federal or D.C. (before Oct. 1, 1987) 51-55 56-60 960 governments eligible for a federal annuity. 61-65 801 Check one: 66-70 653 Retiree Active federal employee 71-75 514 Spouse Former federal employee 76-80 392 Former spouse Survivor 81-90 251 91-100+ 127

Payment Information Single payment

$450.25 353.25 283.00 241.25 201.50 164.50 129.75 99.25 64.00 33.00

Quarterly Installments (4 payments)

Life Membership fee amount: $____________ Date of Birth

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Check or money order (payable to NARFE)

Credit Card Info: MasterCard

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AMEX

Recruiter’s ID # (if applicable)

Card Number:______________________________ Exp. Date:_____/_____ Chapter Number (call 800-456-8410 for chapter information)

Name on Card: (print) ___________________________________________________ Signature: __________________________________________ Date:______________

Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin. Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes.

Mail application and payment to: NARFE, Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314 NARFE | JANUARY 2012

NARFE Perks NARFE Perks are designed to provide NARFE members with a quality option in their search for commonly used products and services. NARFE makes no guarantee on any products and services listed below and encourages its members to shop and compare before making a decision on any financial matter.

MOVING SERVICES

NARFE MEMBER HOMEBENEFITS 1-800-666-9203 http://narfe.myhomebenefits.com • Earn thousands in cash-back rewards when you buy or sell a home* • Shop competitive mortgage rates, receive discounts on closing costs, plus take advantage of your VA Loan Benefits • Receive preferred pricing on interesete moving services with the nation’s most trusted moving company – Allied Van Lines! *State restrictions apply. Call or visit website for details.

BEKINS VAN LINES 1-800-456-6832 (M-F, 8 a.m.-5 p.m. CT) narfe@bekins.com All NARFE members will receive discounted pricing for all interstate shipments. Discount will apply to packing and moving services and valuation protection. All intrastate shipments, locals and international moves will be competitive in cost based on your geographical location. Mention you are a NARFE member and transportation agreement #00930.

VACATION RENTALS

Endless Vacation Rentals® As a member of NARFE, you will receive 10% off the “Best Available Rate” at vacation rental properties booked at www.evrentals.com/narfe or by calling 1877-670-7088, prompt 3, and providing promotion code 20672 at time of booking.

INSURANCE

TRAVEL

NARFE INSURANCE SERVICES

RIVER CRUISES

1-800-233-5764 Insurance plans designed and administered exclusively for NARFE members. Call for information on Whole and Term Life, Hospital Indemnity, Accidental Injury and Death Plan, Dental Plan and Cancer Care Plan. For information on Long Term Care call the Long Term Care Unit at 1800-358-3795.

Unbeatable Deals to Europe, Russia & Ukraine, China & Southeast Asia and Egypt 2-for-1 Cruise Pricing plus up to 2-for-1 roundtrip International Air There has never been a better time to book Your Next Cruise Vacation!

GEICO: 1-800-368-2734 NARFE members with good driving records may be eligible for quality automobile insurance from GEICO. Ask about the NARFE discount now available to members in many states. Call today for your free, no-obligation rate quote. Be sure to mention that you’re a NARFE member! • Discount amount varies in some states • Discount not available in all states or in all GEICO companies • One group discount applicable per policy.

EMERGENCY SERVICES SINCE 1974 1-800-423-3226 Medical Air Services Association has been the industry leader in prepaid emergency assistance services for more than 30 years. NARFE members have experienced MASA’s “peace of mind” services since 2001. Now NARFE members are entitled to even more: air ambulance transportation, helicopter transportation, ground ambulance, vehicle return, mortal remains transport, and much more! Call MASA Today. It Could Save Your Life!

1-800-607-4538 www.NARFEtravel.com

HEARING BENEFITS TRUHEARING The TruHearing program can save you hundreds of dollars: • Free hearing screening • 45-day, money-back guarantee • 3-year warranty • Free one-year supply of batteries • 1,400 hearing professionals nationwide • 12-months, no interest financing (available upon approved credit)

Call to schedule your appointment

877-360-2442 Operators available Mon-Fri 9 a.m.-9 p.m. (East Coast time)

JANUARY 2012 | NARFE

HOTELS

CAR RENTALS

CREDIT UNION

CHOICE HOTELS INTERNATIONAL With 6,000 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. Join the Choice Privileges® rewards program and earn points with every qualifying stay toward free nights, Airline Rewards, gift cards and more. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer. Advance reservations required. To book, visit choicehotels.com or call 800-258-2847.

ALAMO Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call 1-800-462-5266 and reference Contract ID 262544.

NATIONAL You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation call National Car Rental at 1-800-CAR-RENT® and reference Contract ID 5282909.

NARFE’S OF FICIAL CREDIT UNION As a member of NARFE, you have the privilege of joining NARFE Premier Federal Credit Union, which has been serving members since 1935. We offer extensive services at competitive rates to members nationwide. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. For more information, call 800-3281500, e-mail jparish@narfepremierfcu. org or visit us at NARFEpremierfcu.org.

CREDIT CARD AVIS: 1-800-331-1441

WYNDHAM HOTEL GROUP As a member of NARFE, you will receive up to 20% off the “Best Available Rate” at participating locations when you travel. Call and give agent your special discount ID number, 8000002694, at time of booking to receive discount. Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now. Call our special memberbenefits hotline 1-877-670-7088 and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®.

NARFE | JANUARY 2012

The employees/owners of Avis offer guaranteed low rates and quality services to members of NARFE. Mention ID# A991900.

HEALTH SCREENING

LIFE LINE SCREENING Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct the following screenings using state-of-the-art ultrasound technology in your neighborhood: 1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease. You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share these test results with your doctor. All four screenings cost just $135. To schedule an appointment, please call 1-800-324-9906 and give the operator code number: BKHN075 or visit www.lifelinescreening. com/NARFE. Coverage may vary and may not be available in all states.

Bank of America now offers the officially approved credit card program for NARFE, featuring the Platinum Plus® MasterCard® with WorldPoints. This is the only credit card that helps support NARFE every time you use it to make a purchase–at no additional cost to you. Call toll-free 1-866-438-6262 Use NARFE’s full name, not NARFE. Use priority code: UABEWD.

NARFE MERCHANDISE NARFE GENERAL STORE

Order Official NARFE name badges, customizable NARFE logo products and plaques. Phone: 252-353-4005

For the Record The chart below tracks the CPI-W, the monthly inflation change, and the cumulative percentage gain for the next CSRS and Social Security COLA. CPI-W October 2011 November December January 2012 February March April May June July August September

223.043

MONTHLY % CHANGE % CHANGE FROM 223.2 -0.29

November Ends With Rally By William H. Jacobson

inancial markets rose sharply on the last trading day of the month in November, as the Federal Reserve and other major central banks launched a joint effort to provide cheap, emergency loans to banks in Europe and elsewhere. While the C Fund still posted a negative return (-0.21 percent) for the month, the rise on the final day brought the year-to-date return back into positive territory at 1.06 percent. The rally, however, failed to erase the year-to-date losses for the S Fund and I Fund. In November, the S and I Funds’ returns were -0.51 percent and -2.46 percent, respectively; year-to-date returns were -3.35 percent and -9.98 percent. The rally on the final day also brought the F Fund to a barely positive return of 0.01 percent in November.

William H. Jacobson, CFA, is a financial analyst for the Thrift Savings Plan. 46

-0.09

October Index Dips Slightly Editor’s note: Based on price-index figures from July-September 2011, there will be a 3.6 percent automatic cost-of-living adjustment (COLA) for 2012. New information below relates to the 2013 COLA calculation. he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.29 percent in October. To calculate the 2013 cost-of-living adjustment (COLA), the indices of July, August and September 2012 will be averaged for a thirdquarter determinant, which will be compared with the 2011 thirdquarter base of 223.233. The October index of 223.043 is down 0.09 percent from the base. Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W. October’s index is 3.61 percent higher than the December 2010 base index of 215.262. ■

Thrift Savings Plan Investments* Month G Fund 2010 December 0.20% 0.24% 2011 January February 0.22% March 0.26% April 0.25% May 0.25% June 0.21% July 0.22% August 0.19% September 0.16% October 0.14% November 0.14% Last 12 Months 2.51%

F Fund (1.05%) 0.13% 0.26% 0.06% 1.28% 1.31% (0.30%) 1.59% 1.45% 0.73% 0.11% 0.01% 5.68%

C Fund 6.68% 2.37% 3.42% 0.04% 2.96% (1.13%) (1.67%) (2.04%) (5.44%) (7.03%) 10.93% (0.21%) 7.82%

S Fund 7.38% 1.23% 4.52% 2.06% 2.94% (1.27%) (2.35%) (3.14%) (8.12%) (10.73%) 14.09% (0.51%) 3.78%

Month December 2010 2011 January February March April May June July August September October November Last 12 Months

L 2020 4.08% 1.35% 2.15% (0.03%) 2.37% (0.74%) (0.84%) (0.94%) (3.69%) (4.73%) 6.18% (0.34%) 4.40%

L 2030 4.96% 1.57% 2.60% (0.05%) 2.83% (0.97%) (1.10%) (1.25%) (4.63%) (5.92%) 7.68% (0.49%) 4.55%

L 2040 5.67% 1.75% 2.95% (0.08%) 3.20% (1.15%) (1.30%) (1.49%) (5.37%) (6.85%) 8.83% (0.62%) 4.59%

L Income 1.49% 0.63% 0.90% 0.17% 1.01% (0.05%) (0.18%) (0.14%) (1.10%) (1.51%) 2.31% 0.02% 3.55%

I Fund 8.12% 2.41% 3.33% (2.23%) 6.03% (2.90%) (1.16%) (1.60%) (9.03%) (10.55%) 9.48% (2.46%) (2.67%) L 2050

3.28% (0.15%) 3.57 (1.39%) (1.48%) (1.75%) (6.16%) (7.80%) 9.92% (0.78%)

*This chart is provided as a service to NARFE members who enrolled in the Thrift Savings Plan while employed by the federal government. Retirees are not eligible for enrollment. These returns are net of the effect of accrued administrative expenses and investment expenses/costs. Percentages in ( ) are negative. Source: tsp.gov.

JANUARY 2012 | NARFE

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