January 2018 NARFE Magazine

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LATE-CAREER EXITS: LOOK BEFORE YOU LEAP Volume 94 • Number 1

COVER STORY

THE EX-FILES

WHAT FEDERAL EMPLOYEES AND RETIREES NEED TO KNOW ABOUT DIVORCE

P.26

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The Service Benefit Plan will pay a hearing aid benefit up to $2,500 total every 3 calendar years for adults age 22 and over, and up to $2,500 total per calendar year for members up to age 22. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in your Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under the Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefits first before accessing the savings of the Blue 365® Discount Program. To find out what is covered under your policy, contact Service Benefit Plan. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. These items are not subject to the Medicare appeal process.

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JAN

’18

26

COVER STORY

WASHINGTON WATCH

6

President Signs TSP Modernization Act Into Law

7

House Republicans Pass Tax Overhaul

8

New Blended Retirement System for Uniform Service Members

9

Jeff Pon Tapped to Lead OPM

10

Becoming an Effective Advocate

12

NARFE Bill Tracker

COLUMNS

THE EX-FILES. Divorce federal style has additional considerations for benefits. Here’s what every federal employee, retiree and spouse should know about divorce.

4

From the President

42 Managing Money

DEPARTMENTS

16 Questions & Answers

34

LATE-CAREER EXITS. Look before you leap when departing federal service to determine whether you will come out ahead financially.

44 For the Record:

TSP Returns, Retirement Claims Status, Countdown to COLA

46 NARFE News 52 The Way We Worked

On the Web VISIT US ONLINE AT:

www.narfe.org LIKE US ON FACEBOOK:

NARFE National Headquarters FOLLOW US ON TWITTER:

@narfehq

ON THE COVER

Illustration by GRAPHEK W W W. N A R F E . O R G

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JANUARY 2018 | Volume 94 | Number 1

National Active and Retired Federal Employees Association EDITOR Susan Boswell ASSISTANT EDITOR Christopher Johnson GRAPHIC DESIGN GRAPHEK EDITORIAL BOARD Richard G. Thissen, Jon Dowie Barbara Sido EDITORIAL OFFICE: narfe magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Email: communications@narfe.org ADVERTISING SALES: Warren Berger Media People Inc. 122 East 42nd St., Suite 1622 New York, NY 10168 Phone: 212-779-7172, ext. 223 Email: 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 866-5047300 or go to www.nfbnewsline.org.

ON DIGITAL AUDIO: Issues of narfe magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider.

The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

NATIONAL OFFICERS RICHARD G. THISSEN, President; natpres@narfe.org JON DOWIE, Secretary/Treasurer; natsectreas@narfe.org EXECUTIVE DIRECTOR BARBARA SIDO, execdir@narfe.org

REGIONAL VICE PRESIDENTS

REGION I James P. Crawford (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) TEL: 603-630-5191 EMAIL: crawfordjim62@gmail.com REGION II Evelyn Kirby (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) TEL: 410-604-1141 EMAIL: ekirby@atlanticbb.net REGION III Clarence Robinson (Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 EMAIL: crobin8145@att.net

REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: pappysdad@cobridge.tv REGION VII Rodney L. Adelman (Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: narfe7vp@cox.net REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) TEL: 707-644-7565 EMAIL: HLZajac125@gmail.com

REGION IV Edward J. Konys (Illinois, Indiana, Michigan, Ohio and Wisconsin) TEL: 937-470-0566 EMAIL: region4vp@gmail.com

REGION IX Richard Wilson (Alaska, Idaho, Montana, Oregon and Washington) TEL: 253-210-5609, CELL: 425-736-6899 EMAIL: narfe1404@comcast.net

REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) TEL: 620-241-1131, CELL: 620-504-2202 EMAIL: ek617@att.net

REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) TEL: 703-830-6590, CELL: 703-201-6304 EMAIL: wshack1951@aol.com

HERE’S HOW TO CONTACT US…

TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER:

CALL (TOLL-FREE) 800-456-8410 OR GO TO www.narfe.org TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:

CALL (TOLL-FREE) 800-456-8410 EMAIL memberrecords@narfe.org OR GO TO www.narfe.org, log in and click on “Update My Record”

TO REACH A FEDERAL BENEFITS SPECIALIST:

EMAIL fedbenefits@narfe.org NARFE HEADQUARTERS

606 N. Washington St. Alexandria, VA 22314 703-838-7760

www.narfe.org

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. Nonmember subscription rate $40. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2018, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in narfe, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President

2017: A REMARKABLE YEAR

F

irst of all, let me wish everyone a happy New Year for 2018. I am very pleased to tell you that 2017 was a

remarkable year for many reasons.

We have a true association professional managing the operation of NARFE. Barb Sido, our executive director, has made many positive changes in our Headquarters operations and more will be happening in the coming months.

I want to thank the NARFE National Executive Board for approving this important move and supporting Barb.

The NARFE Legislative Department has been very successful in representing the interests of the federal community on Capitol Hill. In 2017, we once again avoided significant cuts in the budget process. At press time, there was still some uncertainty related to the funding pro-

NARFE’s Mission Statement To support legislation and regulations beneficial to federal civilian employees and annuitants and potential annuitants under any federal civilian retirement system and to oppose those detrimental to their interests.

To promote the general welfare of federal civilian employees and annuitants and potential annuitants, to advise and assist them with respect to their rights under retirement, health and other employee and retiree benefits laws and regulations, and to represent their interests before appropriate authorities.

To cooperate with other organizations and associations in furtherance of these general objectives.

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cess for 2018, but we feel confident that we can continue to protect federal employee and retiree benefits. The budget process for 2019 may be our most challenging yet, as Congress will no longer be distracted by tax reform.

The NARFE Marketing Department has been successful this year in reducing membership losses, which are less than half of what they were in 2014. The department reorganized to include the Federal Benefits Institute, which continues to provide significant value for NARFE members through offering information and advice. This department is also leading the effort to make our first conference an exciting event that will offer many new and unique benefits for members and nonmembers alike. Look for more details on FEDcon18 in the coming months!

Our fiscal situation remains positive this year and we are confident the external audit will confirm an increase in NARFE assets. A study of the status of life members has resulted in further improvement in the Life Membership Trust Fund.

The narfe magazine continues to be an awardwinning publication and this year has seen substantial advertising income.

I want to thank each and every member for their support of NARFE. Your involvement makes us strong.

RICHARD G. THISSEN NARFE NATIONAL PRESIDENT natpres@narfe.org

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Washington Watch

PRESIDENT SIGNS TSP MODERNIZATION ACT INTO LAW

T

he Senate passed the TSP Modernization Act of 2017, H.R. 3031, by unanimous consent on November 6. Eleven days later, on November 17, President

Trump signed the bill into law. The law will provide more flexible withdrawal options for Thrift Savings Plan (TSP) participants.

NARFE President Richard G. Thissen applauded Congress and the president for their actions, saying, “This act will provide the proud men and women who serve this nation in the civil service and in the military greater control over their own retirement savings and the ability to plan responsibly for their future.”

The law allows multiple, partial post-separation withdrawals, which participants can time to their individual needs, and permits multiple, age-based withdrawals for participants who are still working and are older than age 59-1/2. The TSP Modernization Act also provides greater flexibility by allowing the election of quarterly or annual payments 6

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and allows periodic withdrawals that can be changed at any point during the year. Payments can be stopped while leaving the account balance in the TSP. Finally, the law eliminates the withdrawal election deadline.

“The current restrictive TSP withdrawal options are one of the leading reasons why participants transfer their money out of the TSP, despite the fact that the TSP provides sound investment options at a low cost,” Thissen ACTION ALERT!

said. “This law will create flexible withdrawal opportunities for participants before and during retirement, offer greater financial independence and encourage participants to keep their money in the TSP.” The Federal Retirement Thrift Investment Board, which oversees the TSP, has two years to issue regulations necessary to implement the expanded withdrawal options. While TSP participants welcome the changes, they may need to wait up to two years to enjoy the expanded options.

“NARFE encourages the Federal Retirement Thrift Investment Board to issue the regulations necessary to make these options available as soon as possible,” Thissen added.

H.R. 3031 was introduced by

JANUARY

Looking for up-to-the-minute updates on NARFE? Follow NARFE on Facebook (www.facebook.com/NARFEHQ) and Twitter (@NARFEHQ)!

Reps. Elijah E. Cummings, D-MD, and Mark Meadows, R-NC, and passed the House on October 11, 2017. Senators Rob Portman, R-OH, and Thomas R. Carper, D-DE, introduced a nearly identical bill, S. 873, which had been approved by the Senate Committee on Homeland Security and Governmental Affairs in July. Their efforts were instrumental in advancing the final bill through the Senate.

NARFE strongly supported passage of the bill and is pleased the commonsense legislation has become law.

—BY JOHN HATTON, DEPUTY LEGISLATIVE DIRECTOR

MYTH vs.

REALITY MYTH: The federal government doesn’t need a paid parental leave policy because employees can use a combination of their sick and annual leave, or forgo pay for 12 weeks.

REALITY: It is true that federal employees can use a combination of accrued sick and annual leave after the birth or adoption of a child, or take 12 weeks of unpaid leave as allowed under law.

However, based on their years of federal service, these parents may not have accrued 12 weeks of sick or annual leave. Additionally, it is unwise to deplete accrued sick leave.

HOUSE REPUBLICANS PASS TAX OVERHAUL

H

ouse Republicans unveiled their plans for overhauling the tax code, with the introduction of H.R. 1, the Tax Cuts and Jobs Act on November 2, 2017. The House then passed the bill mostly along party lines on November 16, 2017, by a vote of 227 to 205.

The 448-page bill would make numerous changes to the current tax code. The bill’s highlights include: • Reduce the corporate tax rate from 35 percent to 20 percent, while making changes to expensing and business deductions.

• Move to a territorial system for taxation of corporate earnings.

• Reduce seven brackets to four brackets of 12, 25, 35, and 39.6 percent for personal income tax.

• Double the standard deduction and expand the Child Tax Credit.

• Cap the mortgage interest deduction at $500,000 for new home purchases.

• Limit state and local tax deductions to property taxes and cap the deduction at $10,000.

• Repeal the medical expense deduction.

• Double the estate tax exemption and repeal the tax by 2024.

• Increase overall federal deficits by about $1.5 trillion over a 10-year period.

Relevant for NARFE members, the cost of the tax bill is not being offset, in any part, by cuts to federal retire-

ment and health benefits. That was a foregone conclusion once the House and Senate approved the concurrent budget resolution for fiscal year 2018, but the release of the bill text further confirms that outcome.

Viewed holistically, the tax bill proposal would affect NARFE members differently due to the complex changes.

NARFE members may be concerned about the repeal of the medical expense deduction, which could have a disproportionate impact on seniors with high health care and long-term care costs. Under the current law, if itemizing deductions, an individual can claim a deduction for out-of-pocket medical expenses that exceed 10 percent of their income.

This would no longer be allowed under the bill. NARFE is joining its coalition partners in the Leadership Council of Aging Organizations (LCAO) in expressing concerns about the repeal of this provision.

The increased deficits that would result from the bill could also lead to more substantial spending cuts down the road, whether from Medicare, Medicaid, Social Security or federal retirement and health benefits. Many members of Congress from both sides of the aisle have expressed concerns over increasing deficits and debt, and the bill could be modified to address those concerns or fail to pass if they (Continued on p. 8)

W W W. N A R F E . O R G

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Washington Watch

NEW BLENDED RETIREMENT SYSTEM FOR UNIFORM SERVICE MEMBERS

T

he military retirement system, for those who serve in the uniformed services, is undergoing a major overhaul. The changes outlined under a proposed rule would create a new retirement benefit plan known as the Blended Retirement System (BRS). After years of planning, this new system was passed as part of the National Defense Authorization Act for fiscal year 2016.

The new system – commonly referred to as “blended retirement” – changes the current military retirement system for newcomers and those eligible to opt-in. Blended retirement would move away from the current system that relies largely on a defined benefit to one that the Federal Retirement Thrift Investment Board (FRTIB) describes as a blending of “a reduced defined benefit with enhanced Thrift Savings Plan (TSP) benefits, continuation pay and lump-sum options.”

Blended retirement would apply (Continued from p. 7) are not addressed.

One provision that is creating confusion for some NARFE members is the indexing of tax brackets using the Chained CPI, or Chained Consumer Price Index.

NARFE strongly opposes using the Chained CPI – a less generous measure of inflation – for determining cost-of-living adjustments to federal and military retirement annuities and Social Security benefits. The tax bill simply ties the tax brackets to the Chained CPI. Using the lower rate of inflation to calculate future tax rates means

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to service members who enter the military on or after January 1, 2018, and for current service members who opt in with 12 or fewer years served.

Based on the proposed rule, the new system would incorporate four major changes to the TSP. Each BRS service member would receive an automatic contribution to their TSP account equal to 1 percent of their monthly salary. This contribution would be on top of their basic pay and is not a deduction.

Additionally, each service member would automatically contribute 3 percent of their basic pay to the TSP. Service members who opt out of these contributions will be automatically re-enrolled annually.

The new plan also incorporates a dollar-for-dollar match on the first 3 percent of basic pay a service member contributes to the TSP and 50 cents on the dollar for the next 2 percent of basic pay. This is the same match federal employees receive. that taxpayers will more quickly fall into higher tax brackets.

The Senate Finance Committee Chairman Orrin Hatch, R-UT, released the Senate plan for a tax overhaul on November 9 and the committee approved a revised version of that bill on November 16. The full Senate passed its tax overhaul bill on December 2. Congressional leaders hoped to send a compromise bill to the president before yearend. At press time, the outcome of that goal was yet to be determined, but likely to occur.

—BY JOHN HATTON, DEPUTY LEGISLATIVE DIRECTOR

Unless otherwise elected, contributions would be invested in an age-appropriate Lifecycle (L) fund.

The new system has its limitations, such as ending the 1 percent monthly contribution to service members after they serve 26 years.

Service members must also serve at least two years before they are vested in the automatic contributions.

With the onset of this new retirement system, the FRTIB expects to see a massive influx of 400,000 to 750,000 additional TSP participants over the course of the next few years.

In partial response to this increase in participants, the FRTIB approved an increased $309.7 million budget for fiscal year 2018.

Additional TSP staff will be needed to handle questions from new participants.

—ROSS APTER, LEGISLATIVE ASSOCIATE

Legislative Resources • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE Legislative Department staff, distributed via email and available by phone (toll-free) at 800456-8410, option 4, and online at www.narfe.org.

• Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.

JEFF PON TAPPED TO LEAD THE OFFICE OF PERSONNEL MANAGEMENT

J

eff T.H. Pon, Ph.D., is the president’s latest pick to run the agency that manages federal employee and retiree benefits, the Office of Personnel Management (OPM).

Pon previously served as deputy director of eGovernment at OPM, where he had a hand in the rollout of the USAJobs website. Pon also served as the chief human capital officer at the Energy Department, and most recently, he served as the chief human resources and strategy officer for the Society for Human Resource Management.

Pon has yet to be confirmed by

transactional methods. He also expressed his desire to speed up the pace of federal hiring.

Pon even broached the subject of security clearances and cited a need to standardize the clearance process across the federal government.

When asked about the protection of personal information, notably the 2015 cyber breaches at OPM, Pon responded that OPM would have qualified personnel and a plan in place to protect against known cyber security risks under his leadership.

the Senate as of press time, but the confirmation process started with a hearing held by the Senate Committee on Homeland Security and JEFF T.H. PON Governmental Affairs on October 18, 2017.

During the hearing, Pon expressed concern with OPM’s retirement claims backlog and advocated for ways to create greater efficiency, such as reducing reliance on paper processes by transitioning to electronic

—ROSS APTER, LEGISLATIVE ASSOCIATE

Contribute To NARFE-PAC I want to make a monthly sustainer credit card contribution:

q $25/month

OR

I want to make a one-time contribution: q $250 – Gold lapel pin and blanket q $100 – Silver lapel pin

q $10/month q Other: ______/month ($10 minimum) Sustainers receive a Sustainer lapel pin and cozy fleece NARFE blanket.

q $50 – Bronze lapel pin q $25 – Basic lapel pin q Other: _________

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Only members of the National Active and Retired Federal Employees Association may contribute to NARFE-PAC. NARFE will neither favor nor disadvantage anyone based on the amount of a contribution or the failure to make a voluntary contribution to this political action fund. NARFE-PAC contributions are not deductible for federal income tax purposes.

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Washington Watch

BECOMING AN EFFECTIVE ADVOCATE: TIPS AND STRATEGIES YOU CAN USE

W

hen you think of an “effective grassroots advocate,” who comes to mind? Maybe an individual speaking out against injustices or someone testifying in front of Congress asking for increased funding for a cause he or she is passionate about. Do you wonder how that person fulfills such a role? Perhaps he or she inspires you to take action, leading you to ask what you can do to become an effective advocate for the federal community.

PREPARATION There are many types of advocates. Some attend congressional meetings, while others prefer to call legislators’ offices or send messages to voice their concerns.

The first step to becoming an effective advocate is to conduct research. Information gathering is crucial to successful advocacy.

You need to have a goal in mind. Is there a bill pending that would directly impact you?

Do you want your legislator to oppose or support it? Why? How would Feds be affected if the legislation passed? Be prepared to explain how, using numbers and statistics, preferably ones you can tie to your state. A top-notch advocate should be knowledgeable about an issue, able to influence legislators and effectively communicate NARFE’s position.

If you interact with a legislator in person, you will only have a short time to address your concerns, so prepare your remarks accordingly. The more knowledgeable you are about legislation, and the more prepared you 10

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Effective advocacy comes in many forms, so answer NARFE’s calls to action in the way you feel most comfortable. are to discuss why you oppose or support proposals, the more likely others are to listen to your perspective. To be more memorable, stay on message, include a compelling story about how Feds would be affected by the legislation and ask for support for or opposition to a specific bill. The key is to be succinct and organized.

COMMUNICATION Just like in any relationship, communication is essential to building trust. NARFE members should aim to be the source of information on federal issues for legislators. You should interact consistently, but not overwhelmingly, with congressional staff, and not only when asking the legislator to take a position on a bill.

A good rule of thumb is to reach out no more than once per month about a topical issue. Be brief, and remember to be polite.

For NARFE leaders, building and maintaining relationships with key congressional staff is critical to advancing NARFE’s priorities. Leaders should stay informed about the legislative calendar so they can reach out with a quick message in advance of key votes to remind the legislator and staff of NARFE's position on the issue before legislation moves. Review the issue briefs and fact sheets on the Legislation page of the NARFE website to brush up on the issues, and the

Grassroots section for guidance about building relationships with legislators.

Effective advocacy comes in many forms, so answer NARFE’s calls to action in the way you feel most comfortable. NARFE’s success in combating threats to your earned pay and benefits will be attainable only if legislators hear from the federal community in their states and districts via multiple channels of communication. There is power in numbers, so make your voice heard!

FOLLOW UP After a congressional meeting or in-person engagement, reach out to the staffer to answer any lingering questions, and remind him or her of NARFE’s “ask.”

A quick follow up helps bring NARFE’s legislative priorities back in front of the legislator.

No matter how you decide to take action, make sure you conduct thorough research, effectively communicate your position and follow up with congressional staff after you engage your legislator. Your voice matters.

We need all NARFE members to become effective advocates if we want to be successful at preventing cuts to your earned pay and benefits. If you have any questions about how to become an effective advocate, contact leg@ narfe.org.

—MOLLY CHECKSFIELD, GRASSROOTS PROGRAM MANAGER

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Washington Watch

narfe bill tracker

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

POSTAL REFORM

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

H.R. 756: Postal Service Reform Act of 2017 / Rep. Jason Chaffetz, R-UT Cosponsors: 9 (D), 7 (R)

Requires postal retirees to enroll in Medicare in order to continue receiving their current federal health insurance coverage.

Enrollment would be automatic.

Approved by the House Committee on Oversight and Government Reform; pending in two other committees narfe, June 2017

H.Res. 15: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. Sam Graves, R-MO Cosponsors: 176 (D), 60 (R)

Expresses the sense of the House that the U.S. Postal Service should take all appropriate measures to ensure the continuation of six-day delivery.

Referred to the House Committee on Oversight and Government Reform

H.Res. 31: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. Dave McKinley, R-WV Cosponsors: 161 (D), 44 (R)

Expresses the sense of the House that the U.S. Postal Service should take all measures to restore service standards in effect on July 1, 2012.

Referred to the House Committee on Oversight and Government Reform

H.Res. 28: As a resolution, it will not be sent to the president and, therefore, cannot become law / Rep. Susan Davis, D-CA

Expresses the sense of the House that the U.S. Postal Service should take all measures to ensure the continuation of door-to-door delivery for all businesses and residential customers.

Referred to the House Committee on Oversight and Government Reform

H.R. 757 / S. 255: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerald E. Connolly, D-VA Cosponsors (H.R. 757): 69 (D), 1 (R) Cosponsors (S. 255): 7 (D), 0 (R)

Provides for a 2 percent pay raise for federal employees and 1.2 percent increase in locality pay in 2018.

Referred to the House Committee on Oversight and Government Reform (H.R. 757) and the Senate Committee on Homeland Security and Governmental Affairs narfe, April 2017

H.R. 3269: Federal Employee Pension Fairness Act of 2017 / Rep. Anthony G. Brown, D-MD Cosponsors: 26 (D), 0 (R)

Repeals laws passed in 2012 and 2013 that increased the Federal Employees Retirement System (FERS) contributions for newly hired federal employees.

Referred to the House Committees on Oversight and Government Reform and Foreign Affairs narfe, October 2017

H.R. 1022: Federal Employees Paid Parental Leave Act of 2017 / Rep. Carolyn Maloney, D-NY Cosponsors: 74 (D), 1 (R)

Provides federal employees with 6 weeks of paid leave in connection with the birth or adoption of a child

Referred to the House Committees on Oversight and Government Reform and House Administration

H.R. 1291: Washington, D.C. Admission Act / Del. Eleanor Holmes Norton, D-DC

Sets forth procedures that would allow the District of Columbia to become a state known as the State of Washington, D.C.

Referred to the House Committee on Oversight and Government Reform, and Committee on Rules

Cosponsors: 184 (D), 57 (R)

FEDERAL COMPENSATION

DC STATEHOOD

Cosponsors: 140 (D), 0 (R) 12

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NARFE’s Position:

Support

LATEST ACTION(S)

Oppose

No position

EDITOR’S NOTE: These bills are all listed online at www.narfe.org/legislation/votervoice.cfm.

ISSUE

TAXES

BUDGET

COLA

BILL NUMBER / NAME / SPONSOR

CAMPAIGN FINANCE

LATEST ACTION(S)

H.R. 2929: Federal Employee Combat Zone Tax Parity Act / Rep. Rob Wittman, R-VA Cosponsors: 7 (D), 2 (R)

Extends the tax credit available Referred to the to military personnel who serve House Committee on in combat zones to civilian Ways and Means federal employees. narfe, September 2017

H.R. 3200: The TaxpayerFunded Pension Disclosure Act / Rep. Ron DeSantis, R-FL Cosponsors: 0 (D), 7 (R)

The legislation would allow for public disclosure of federal pension data, including: name of annuitant, last agency of employment, grade, monthly annuity and total annuity contributions.

Referred to the House Committee on Oversight and Government Reform narfe, October 2017

H.Con.Res. 71: House Concurrent Budget Resolution for Fiscal Year 2018 / Rep. Diane Black, R-TN Cosponsors: 0

Establishes the congressional budget for fiscal year 2018 and sets forth the budgetary levels for fiscal years 2019 through 2027. Instructs the House Committee on Oversight and Government Reform to find at least $32 billion in savings.

Amended version approved by the House on October 26, 2017, and by the Senate on October 19, 2017

H.R. 1251: CPI-E Act of 2017 / Rep. John Garamendi, D-CA Cosponsors: 44 (D), 1 (R)

Requires Social Security and many federal retirement programs to use the Consumer Price Index for the elderly (CPI-E) to calculate cost-ofliving adjustments (COLAs) to retirement benefits.

Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Government Reform, and Armed Services narfe, May 2017

S. 873 / H.R. 3031: TSP Modernization Act of 2017 / Sen. Rob Portman, R-OH

Updates age-based and post- Signed into law on separation withdrawal options, November 17, 2017 creates new withdrawal See story, p. 6 intervals, grants flexibility in payment amounts and eliminates the Thrift Savings Plan (TSP) withdrawal election deadline.

H.R. 1205 / S. 915: Social Security Fairness Act of 2017 / Rep. Rodney Davis, R-IL Cosponsors (H.R. 1205): 118 (D), 43 (R) Cosponsors (S. 915): 4 (D), 4 (R), 1 (I)

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

H.R. 20: The Government By the People Act of 2017 / Rep. John Sarbanes, D-MD

Reforms campaign finance Referred to three laws to put small donors on par House committees with wealthier donors. Provides a tax credit or contributions and government matching contributions.

FEDERAL RETIREMENT

GPO/WEP

WHAT BILL WOULD DO

Cosponsors: 156 (D), 1 (R)

Referred to the House Committee on Ways and Means (H.R. 1205), and the Senate Committee on Finance (S. 915) narfe, May 2017

The Access to Insurance for All Americans Act, H.R. 1408, has been removed from the tracker. The legislation has failed to garner any cosponsors and is unlikely to be considered by the House of Representatives.

W W W. N A R F E . O R G

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13

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Questions & Answers

The following Questions & Answers were compiled by NARFE’s Federal Benefits Service Department staff.

NARFE does not provide legal, financial planning or tax advice or assistance.

EMPLOYEES CAN YOUR ANNUITY BE GARNISHED?

Q

I plan on retiring in February 2018 after 37 years of service under the Civil Service Retirement System (CSRS). I have recently divorced my spouse. Can my retirement be garnished in any way due to a legal judgment made against me?

A

Title 5, United States Code, Section 8345, limits garnishment payments from annuities to those payments expressly provided for in the terms of a court order related to a divorce, separation or annulment and any court order to enforce a judgment against the retiree for child abuse. If your divorce decree is already finalized and is silent about federal benefits, your former spouse won’t be entitled to your CSRS pension unless the divorce decree is amended. If your divorce decree dictates that your former spouse is entitled to a federal benefit of yours, then a copy of that decree should be included with your retirement 16

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application package that you submit to your agency.

NON-FEDERAL SPOUSE NOT SUBJECT TO WEP

Q

I am a federal employee covered by the Civil Service Retirement System (CSRS). My spouse works in the private sector. Is there any limitation on my annuity or her Social Security benefits after we both retire? Would she collect a reduced amount because of my CSRS annuity, or vice versa?

A

Your wife is not a government employee. The Social Security benefit she earned for herself will be unaf-

fected by the Windfall Elimination Provision (WEP) and any Social Security benefit you may have earned for her will not be subject to the Government Pension Offset (GPO) even if she eventually collects a spousal survivor benefit under CSRS upon your death. She will be able to collect the regular Social Security benefits to which she is entitled based on her Social Security-covered earnings while simultaneously collecting her full CSRS survivor annuity, should she outlive you. However, once you retire under CSRS, you would be subject to both of these provisions.

Your CSRS pension is not affected unless you are CSRS Offset and/ or have an unpaid military service deposit, but any Social Security benefits to which you might become entitled could be affected by receipt of a CSRS pension.

Any Social Security benefit you may have earned under your own work record could be affected by

the WEP and any Social Security spousal or survivor benefit you would be entitled based on your spouse’s work record would be offset by two-thirds of your CSRS pension. This usually wipes out the spousal or survivor Social Security benefit for a CSRS retiree, leaving only the Social Security benefit that the CSRS retiree earned for him/ herself. You can get more information on both these provisions by going to the Social Security website, www.ssa.gov, and looking under publications for publication 05-10007, “Government Pension Offset,” and 05-10045, “The Windfall Elimination Provision.” You can also request these pamphlets from Social Security by calling 800-772-1213.

BASIC LIFE INSURANCE IN RETIREMENT

Q

Before retiring, I would like to know if the amount of the Option A Federal Employees’ Group Life Insurance (FEGLI) decreases by 75 percent to $2,500. This suggests that all employees have the same amount of insurance when they retire. I presently have a face value of $60,000.

A

Don’t confuse your Basic coverage with the Option A coverage you previously added to your FEGLI. The amount of your Basic Life Insurance in retirement, formerly known as Regular Insurance, is your annual rate of basic pay in effect when you retire, rounded up to the nearest thousand plus $2,000. For example, if your final salary was

$57,600, rounding up to the nearest thousand and adding $2,000, the total would be $60,000. At retirement, if you want to continue this coverage, you will choose either the 75 percent reduction, 50 percent reduction or no reduction option. The reduction option you choose at retirement determines what happens to the Basic coverage on the other side of age 65. If you choose the 75 percent reduction option for Basic, at age 65 (when you no longer have to pay the premium), the $60,000 Basic coverage would reduce 2 percent per month until it reaches the full 75 percent reduction (leaving $15,000 payable even if you pass away more than 20 years later). Option A, sometimes called Standard insurance ($10,000), is in addition to the Basic insurance. If you keep Option A with your Basic, you only pay the premiums for this until age 65, at that point it’s premium free, and this coverage also reduces 2 percent per month until it reaches the $2,500 amount. In both situations, it takes just over 3 years for this 75 percent reduction to be reached, which usually means you will be age 68 when these points are reached.

RETIREES MEDICARE PENALTY AND GROUP INSURANCE

Q

I did not sign up for Medicare Part B during my Initial Enrollment Period but I am covered under my wife’s group health plan. Will I be

subject to a penalty for not enrolling during my Initial Enrollment Period?

A

It depends on whether her group health plan is under her employment or not. If her health insurance is not under her employment, then you would be subject to a late enrollment penalty if you decide to enroll in Medicare Part B later. However, if it’s under her employment, you would have an eight-month period from the date her employment coverage ends (or transitions to retirement coverage) to contact Social Security to sign up for Medicare Part B without any penalty.

Medicare calls this a Special Enrollment Period. We highly recommend that you visit the webinar section of the NARFE Federal Benefits Institute website (www.narfe.org/FederalBenefitsInstitute) and view the on-demand Medicare webinar, as it addresses this topic and more in regards to Medicare and the Federal Employees Health Benefits Program.

INCOME TAXES ON DISABILITY RETIREMENT

Q

In 2016, I retired on disability retirement.

I was and am permanently disabled, unable to be gainfully employed. I have been paying federal income tax since retirement. Should I be paying income tax now, and should I have been paying income tax all these months? I tried to resolve it with IRS to no avail.

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Questions & Answers

A

Since you retired on civil service retirement disability, your annuity was taxable until you reached your minimum retirement age. At that time, you could begin recovering the cost of your annuity. Your retirement age would generally be age 55 with 30 years of service,

age 60 with 20 years of service, or age 62 with five years of service.

For law enforcement officers, firefighters or air traffic controllers, age 50 with 20 years of service.

If you have paid federal income taxes since your civil service retirement disability commenced, and have reached your mini-

mum retirement age, you may be eligible to use the Simplified Method to figure the taxable and tax-free parts of your annuity.

You may want to contact the IRS at 800-829-3676 and request their Publication 721, “Tax Guide to U.S. Civil Service Retirement Benefits” or visit www.irs.gov.

Focus on Federal Benefits 2018 MEDICARE PREMIUMS

Although the premium amounts for Medicare Part B are not changing from 2017 to 2018, the premium you actually pay may go up in 2018 for one of the two following reasons.

Reason 1: Since Social Security benefits are increasing by 2 percent, those who were previously protected under the “hold harmless” provision, currently paying less than $134 from their Social Security, will most likely see an increase to their Medicare Part B premium. The slight increase to their Social Security benefit will most likely be fully or partially absorbed by the increasing cost of the Medicare Part B premium.

Example: In 2017, Robert’s Medicare Part B premium was $109. His Social Security benefit was $1,000. In 2018, since his Social Security benefit will be increased by 2 percent to $1,020, his Medicare Part B premium will be increased to $129. Unfortunately, Robert’s increase in Social Security this year will be fully absorbed by the increasing cost of his Medicare Part B coverage.

Example: In 2017, Julie’s Medicare Part B premium was $109. Her Social Security benefit was $2,400. In 2018, since her Social Security benefit will be increased by 2 percent to $2,448, her Medicare Part B premium will be increased to $134. Since Julie’s Modified Adjusted Gross Income (MAGI) from 2016 keeps her in the least expensive Medicare Part B premium bracket,

18

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her premium cannot exceed the $134. However, part of the increase to her Social Security is still being absorbed by the increasing cost of her Medicare Part B coverage.

Reason 2: The income bracket limits are changing for the highest three brackets. This may move some individuals in the

higher income brackets to higher premium rates.

Example: In 2017, Barbara’s Medicare Part B premium was $267.90 because her MAGI in 2015 was $140,000 (filing single).

In 2018, Barbara’s Medicare Part B premium will increase to $348.30 even if her MAGI for 2016 continues to be $140,000.

INCOME-RELATED MONTHLY ADJUSTMENT AMOUNT If your yearly income in 2016 was:

You pay each month

File individual tax return

File joint return

$85,000 or less

$170,000 or less

$134

$85,001 up to $107,000

$170,001 up to $214,000

$187.50

$107,001 up to $160,000 Changing to $133,500

$214,001 up to $320,000 Changing to $267,000

$267.90

$160,001 up to $214,000 $133,501 up to $160,000

$320,001 up to $428,000 $267,001 up to $320,000

$348.30

Above $214,000 Above $160,000

Above $428,000 Above $320,000

$428.60

in 2018:

The modified adjusted gross income (MAGI) amounts for 2015 and 2016 (red) highlight changes to the highest three brackets, which may move some individuals to higher premium rates. All premiums listed in this article are per person/per month.

Questions & Answers

This publication will include the Simplified Method Worksheet and instructions regarding disability retirement.

TSP WITHDRAWALS

Q

I am age 65 and receiving a monthly payout from the Thrift Savings Plan (TSP).

Upon attaining age 70-1/2, the monthly payout must meet the IRS minimum or a penalty is payable. What do I do if my already selected monthly payout amount fails to meet the IRS minimum?

Will the TSP permit an exception in that situation?

A

As we understand the TSP rules, if your monthly withdrawal amount is insufficient to satisfy the minimum required when you reach age 70-1/2, the TSP will automatically adjust it to the required amount at that time. Since you have plenty of time before you reach age 70-1/2, you may want to verify this with the TSP by calling 877-968-3778.

DOCTOR DIDN’T FILE CLAIM PROMPTLY

Q

I have recently had a very unpleasant experience regarding my health bene-

Do you or a loved one struggle on the stairs?

fits plan. My doctor’s office delayed for over a year in submitting a claim, and my plan refused to pay benefits. Now, the doctor’s office says we are liable because our insurance won’t pay. We are perplexed and frustrated with the outcome of our grievance. Neither the plan’s response nor the Office of Personnel Management (OPM) claims examiner indicated what course of action we should take to avoid a similar future occurrence. It seems extremely unfair to obligate an enrollee for payment on a doctor’s behalf in a timely manner and ultimately hold the enrollee responsible for paying the bill. Your counsel and recommendation as to specific

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A simple idea… made possible with sophisticated technology. If you have trouble understanding a call, captioned telephone can change your life. During a phone call the words spoken to you appear on the phone’s screen – similar to closed captioning on TV. So when you make or receive a call, the words spoken to you are not only amplified by the phone, but scroll across the phone so you can listen while reading everything that’s said to you. Each call is routed through a call center, where computer technology – aided by a live representative – generates voice-to-text translations. The captioning is real-time, accurate and readable. Your conversation is private and the captioning service doesn’t cost you a penny.

Internet Protocol Captioned Telephone Service (IP CTS) is regulated and funded by the Federal Communications Commission (FCC) and is designed exclusively for individuals with hearing loss. To learn more, visit www.fcc.gov. The Hamilton CapTel phone requires telephone service and high-speed Internet access. WiFi Capable. Callers

do not need special equipment or a captioned telephone in order to speak with you.

Finally… a phone you can use again. The Hamilton CapTel phone is also packed with features to help make phone calls easier.

The keypad has large, easy to use buttons. You get adjustable volume amplification along with the ability to save captions for review later. It even has an answering machine that provides you with the captions of each message.

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Do you get discouraged when you hear your telephone ring? Do you avoid using your phone because hearing difficulties make it hard to understand the person on the other end of the line? For many Americans the telephone conversation – once an important part of everyday life – has become a thing of the past.

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Questions & Answers

steps to take regarding the filling of claims for future services rendered will be gratefully appreciated.

A

We agree with you that what has happened is extremely unfair. We cannot imagine why the doctor’s office took more than a year to submit its claim for payment to the plan. Unfortunately, the brochure language is clear with respect to the filing deadline for claims. Although the plan has a good reputation for paying claims, this claim was submitted nearly three months after the filing deadline, which was more than 14 months after medical services were rendered. This seems like plenty of time for the doctor’s

office to have submitted its claim.

You may want to file a formal complaint with the doctor’s office.

Since it was the staff who failed to submit the claim to the plan in a timely manner, they should accept responsibility. Consumers are advised to be conscientious in looking for an Explanation of Benefits (EOB) from a health plan to indicate that a claim has been filed and how the claim was paid. If you go to a provider for medical services and do not receive an EOB within approximately six to eight weeks, you should ask your provider’s business manager when the claim was filed or will be filed. Following up in this manner will assure that

you do not get left holding the bag and paying for services that your insurance plan would cover.

SUSPENDING FEHB FOR PRIVATE INSURANCE

Q

I am retired from civil service and have insurance through the Federal Employees Health Benefits (FEHB) Program. I would like to suspend the coverage for a few years because I can buy similar coverage through my current employer for a lower cost. The information I received from the Office of Personnel Management

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Questions & Answers

(OPM) does not give me the suspension option unless the plan is a Medicare Advantage Plan or TRICARE For Life. I understand I can cancel my coverage but would not be able to re-enroll if I wanted to at a later date; however, I would prefer to suspend coverage, if permitted to do so.

Could you clarify whether I am allowed to suspend coverage?

A

Under the OPM FEHB regulations, enrollees can suspend FEHB coverage, with the right to subsequently return to FEHB, if enrolled in a Medicare Advantage Plan, TRICARE For Life, TRICARE (including the Uni-

formed Services Family Health Plan), CHAMPVA Medicaid or a state-sponsored program for low-income individuals. Unfortunately, there are no provisions for suspending FEHB coverage for your private-sector employment health insurance.

To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

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Map Your Path to a Smooth Retirement What’s YOUR Best Retirement Date?

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NARFE Federal Benefits Institute www.NARFE.org/Institute

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Cover Story 26

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THE EX-FILES

WHAT FEDERAL EMPLOYEES AND RETIREES NEED TO KNOW BEFORE DISSOLVING THEIR MARRIAGE

By Everett A. Chasen

More than 90 percent of Americans marry by age 50 – and between 40 to 50 percent of married couples divorce at some point in their lives. Location, education levels, religious beliefs, mental health and if one’s parents were divorced all contribute to whether a marriage will endure.

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THE EX-FILES

WHAT FEDERAL EMPLOYEES AND RETIREES NEED TO KNOW BEFORE DISSOLVING THEIR MARRIAGE

Although no statistics exist, it’s easy to assume federal employees divorce at the same rate as other Americans. It’s even possible the divorce rate is higher among those who work for the government, due to the high stress levels of many federal jobs that can disrupt otherwise stable marriages.

Divorces are often complicated legal procedures. The economic implications of divorce, in which joint property and other items accumulated over the course of a life together are divided, are particularly significant. This is especially true for federal employees, whose benefits can be significantly affected in settlements.

Office of Personnel Management (OPM) pamphlet RI 84-1, “Court-Ordered Benefits for Former Spouses,” is available on OPM’s website (www. opm.gov). A senior OPM official and an employment retiree lawyer who works on federal employee divorce issues explain what every federal employee, retiree and spouse should know about divorce.

COURT ORDERS

Courts can issue orders that award benefits to legally separated spouses, former spouses and children of current employees, former employees and retirees under the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS), noted Ken Zawodny, OPM’s associate director of retirement services. “Both parties should be aware of potential court awarded retirement benefits.”

Court ordered benefits can affect: • CSRS or FERS annuities • Refunds of retirement contributions • Thrift Savings Plan (TSP) accounts • FERS basic employee death benefits • FERS Annuity Supplements • Survivor annuities payable upon the death of employees or retirees • Continued coverage under the Federal Employees Health Benefit (FEHB) Program and the Federal Employees Group Life Insurance (FEGLI) program for former spouses and an employee’s child or children 28

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Divorces are often complicated legal procedures. The economic implications of divorce are particularly significant.

A certified court order applicable to CSRS and FERS meeting the requirements found in the United States Code and the Code of Federal Regulations should be provided to OPM to enable the division of benefits.

“OPM must comply with qualifying court orders, decrees or court-approved property settlements in connection with divorces, annulments of marriages or legal separations of employees or retirees that award the former spouse survivor annuities,” Zawodny explains.

“The court order should specify exactly what it wants OPM to do,” he continues. “It must expressly provide for payment of a portion of the employee’s or retiree’s monthly annuity or contributions. In addition, the spouse’s share must be stated as either a fixed amount, a percentage of the annuity, or be expressed as a formula whose value is ‘readily apparent’ to OPM.” Zawodny notes that qualified domestic relations orders (QDRO) may not be valid when one of the parties to the divorce is a federal employee.

Court orders that affect private-sector pensions are governed by the Employee Retirement Income Security Act (ERISA), Zawodny notes. However, CSRS and FERS are exempt from ERISA. Under ERISA, the former spouse’s share of the benefit can begin when the employee reaches the minimum retirement age, even if the employee is still working. This is not true for federal employees, who must be eligible for the benefits being divided, and must also have made the proper application for the benefit.

Courts can also require employees or retirees to cover their children under FEHB, to assign FEGLI coverage to a former spouse or to the employee’s child or children, and to name either the former

spouse or the children, or both, as beneficiaries under FEGLI. Retirement benefits may be garnished for alimony, child support, or to collect amounts awarded in child abuse cases.

OPM defines “former spouses” as living persons who were married for at least nine months to employees or retirees who performed at least 18 months of civilian federal service covered by either FERS or CSRS, and whose marriage terminated before the death of the employee or retiree.

A LAWYER’S PERSPECTIVE

Kimberly Berry, Esq., managing partner of Berry and Berry PLLC, is an employment lawyer in Reston, Virginia. “My husband started the practice in 2000 and mostly represented federal employees,” she explains. “I joined him in 2006. We found a lot of our federal employee work involved retirement issues, some of which involved clients who had divorced or were going through divorces.”

“Besides a family law attorney, you need a lawyer for divorce who knows about federal retirement law,” she continues.

Every family lawyer working with federal employees should know about RI 38-116, “A Handbook for Attorneys on Court-ordered Retirement, Health Benefits and Life Insurance,” a 137-page publication that can be found on OPM’s website (www.opm.gov).

“There are very specific rules, and you’ve got to know them,” says Berry. “Most family lawyers don’t really know all the nuances. Even though they may have this handbook, it can be overwhelming.”

She urges family lawyers to draft court orders clearly and simply and to follow the handbook.

“The Court Order Acceptable for Processing, or COAP as OPM likes to refer to it, is not for the family court judge; it’s for OPM,” she explains.

“You just need the family court to approve or certify the document.”

If a court order is not prepared correctly, “what might happen is that OPM might interpret the court order in a way that’s based on what the

federal retirement rules permit it to do, and that might not necessarily be what either party in the divorce intended.”

Besides helping family lawyers draft court orders properly or fixing problems relating to them, Berry sometimes challenges OPM’s decisions.

“Sometimes OPM makes a determination and it’s not right, or OPM takes too long to resolve a matter. In some cases, I take a client’s court ordered benefits matter all the way to the Merit Systems Protection Board if we have to.”

“ Besides a family law attorney, you need a lawyer for divorce who knows about federal retirement law.”

- Kimberly Berry RETIREMENT ANNUITIES

If the court orders it, a divorced spouse can receive the entire net amount of a retirement annuity.

The maximum survivor benefit payable to any spouse after the employee dies, however, is 55 percent of the self-only rate of annuity under CSRS, and 50 percent of the self-only rate of annuity under FERS. (Self-only annuities are the monthly annuity payments under CSRS or FERS to a retiree who has elected not to provide a survivor annuity to anyone after he or she dies.)

Employees who remarry can provide their new spouse with a retirement survivor benefit only if the former spouse is receiving less than the maximum survivor benefit. OPM gives precedence to court orders, and new spouses can receive only what remains from the 55 or 50 percent annuity.

Berry warns that retirees cannot award, increase, reduce or eliminate a former spouse survivor annuity either awarded in a pre-retirement or pre-death court order, or in a first order dividing the martial property, which many family lawyers don’t know. Employees can also voluntarily elect for former spouses to receive survivor benefits without a court order.

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THE EX-FILES

WHAT FEDERAL EMPLOYEES AND RETIREES NEED TO KNOW BEFORE DISSOLVING THEIR MARRIAGE

FEHB, FEGLI AND TSP BENEFITS

“Under certain conditions,” says Zawodny, “a former spouse who is awarded a portion of an employee’s or retiree’s CSRS or FERS annuity is eligible to enroll in health benefits coverage under the FEHB program.” This is true if the spouse is awarded a portion of the employee’s annuity by a qualifying court order, and whether or not that benefit is payable immediately or in the future.

One of the things court orders can do is to require an assignment of life insurance benefits to a former spouse or children.

Authority for this is found in the Civil Service Retiree Spouse Equity Act of 1984. Former spouses are eligible to enroll under Spouse Equity provisions if: • The divorce took place during the time the federal worker was employed, or while he or she was receiving an annuity • The spouse was covered as a family member under a FEHB plan for at least one day during the 18 months before the marriage ended • He or she is entitled to a portion of the employee’s annuity, or to a survivor annuity • He or she has not remarried before age 55 If those conditions are not met, former spouses lose coverage as a family member under FEHB at the time of the divorce, but there can be a 31-day extension of coverage. However, Zawodny warns, “enrollment under the Spouse Equity provisions may not begin for several months after the divorce, depending on how long it takes to establish eligibility.”

Zawodny suggests, “it’s advisable to stay with the same [FEHB] plan if a former spouse is seeking coverage under the Spouse Equity provisions.” There’s also the possibility former spouses can receive cov30

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erage retroactively once an enrollment under Spouse Equity provisions has been approved. To do that, an application must be made, and satisfactory proof of eligibility must be provided, within 60 days after the date of divorce.

One of the things court orders can do is to require an assignment of life insurance benefits to a former spouse or children. “If a valid court order is filed,” Zawodny says, “the court order will be followed instead of the order-of-precedence for benefits paid under FEGLI.” For this to apply, a certified copy of the court order must have been received before the death of the insured individual.

For employees, the court order should be filed at the employing agency and at OPM. Retirees should file the court order at OPM. The TSP is not administered by OPM, but by the Federal Retirement Thrift Investment Board. TSP also requires a court order to divide accounts. Valid court orders may award a specific dollar amount or a portion of the entire account to a divorced spouse as of a specific past or current date.

TSP will freeze an account until the award is paid out or the order is otherwise resolved, preventing federal employees from taking out any loans or withdrawals. A freeze, however, will not prevent employees from making contributions or changing contribution allocations or investment choices – and divorced employees will still be required to make payments on existing loans.

Berry warns that TSP language in court orders should also be simple and straightforward. “Sometimes, people try to specify either an earlier date from which they want the funds to be divided, or a period of time during which they want that division to be done, and the board won’t do that. The rules are very specific.”

BENEFIT ESTIMATES

“The employing agency is the proper source for information concerning a current employee’s service and benefits,” explains Zawodny. “OPM does not receive an employee’s records until the employee leaves the agency.”

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THE EX-FILES

WHAT FEDERAL EMPLOYEES AND RETIREES NEED TO KNOW BEFORE DISSOLVING THEIR MARRIAGE

In response to a judge’s subpoena, or a release signed by the employee, agencies commonly provide a statement of CSRS or FERS coverage; the amount of money that has been withheld by the agency to the employee’s credit in the retirement fund and an annuity estimate using the employee’s service history to date.

Zawodny cautions that annuity estimates made before retirement are only estimates, and that official computations are made by OPM only at the time the benefits become payable. He also explains that agencies should not attempt to make a “present value” computation of an employee’s future benefits or attempt to determine the proper division of benefits between an employee and his or her spouse.

“Present value computations should be prepared by a qualified private actuary,” he says. “They are beyond the scope of an employing agency’s or OPM’s responsibility.”

Berry will sit down with clients and provide a rough estimate of the potential amount(s) of the former spouse’s marital share apportionment of the retiree’s annuity. “I work out the scenarios for people,” she tells us, “so they actually see what a former spouse’s marital share apportionment will look like when they retire.”

FINAL ADVICE

Berry had these final words of advice for divorcing federal employees, retirees and their soon-to-be former spouses. “Get educated,” she says. “If your family lawyer doesn’t know something, look it up yourself, do the digging, and find out what the retirement rules require. Make sure you provide OPM what it needs. And if you’re sensing that the family lawyer’s understanding or OPM’s decisions are not really on the mark, remember that this is your financial future, so take the time to do the work necessary early to avoid mistakes and problems down the road.”

“Remember, once the deal is done, and the divorce is finalized, you may not be able to change certain things. So be very careful,” she 32

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ONCE THE

IS DONE

OPM suggests all court orders pertaining to divorces and legal separations be sent to the agency immediately, once they are filed by the courts. The court orders must be original certified documents, signed by a judge, and have a raised/ink seal. If additional orders are provided, such as Separation and Property Settlement Agreements, Court Orders Acceptable for Processing (COAP) and Qualified Domestic Relations Orders (QDRO), OPM requires a signed, original, certified copy of those documents as well.

All court order documentation should be sent immediately upon issue to: ffice of Personnel Management O Retirement Programs Court Order Benefit Section Post Office Box 17 Washington, DC 20044 If one party is still employed by the federal government, a copy of the divorce decree or legal separation papers should be sent to the employing agency. However, OPM needs certified court ordered documents to determine if future benefits are awarded.

A copy is not acceptable.

concludes. “Find a family lawyer and, if possible, a federal retirement lawyer, who can help and advise you properly.”

—EVERETTA.(EV)CHASENISAWRITERANDCOMMUNICATIONSCONSULTANTINTHEWASHINGTON,D.C.,AREA.HERETIREDFROMTHEFEDERAL GOVERNMENT AFTER 35 YEARS OF SERVICE.

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LATE-CAREER EXITS:

LOOK BEFORE YOU LEAP FROM FEDERAL SERVICE

BY DAVID TOBENKIN

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Many mid- and late-career federal employees are facing a difficult and fateful choice. They may complete their careers in federal service despite salaries that may not keep pace with rising costs, potential benefits cuts and agency reductions-in-force, and agency policy shifts that may not be agreeable. Or, they may take the leap to depart federal government to complete their careers elsewhere.

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Robert Baltzell, a financial planner at RLB Financial in Oxnard, CA, has given financial planning lectures and consulted hundreds of employees at the Environmental Protection Agency (EPA) – an agency that may face substantial budget cuts based on a fiscal year 2018 spending bill approved by the House in September. The organization also has seen a new administration policy shift that many employees find distasteful.

“In addition to the stress and danger of workforce cuts, many joined the EPA not just for a job, but to make a difference,” Baltzell says. “When they add that to the cuts, they don’t see a direction that they want to be part of,” says Baltzell, who makes frequent financial planning presentations to EPA members who belong to the American Federation of Government Employees (AFGE) union, as well as to other federal employees.

“Those at EPA who can leave now are departing if it makes financial sense, such as qualifying for an unreduced pension and Social Security benefits or if they can earn more in the private sector. This is also the case for clients at many other agencies,” says Baltzell, “Those who don’t qualify for retirement, or who can’t find better non-federal employment opportunities, are sticking it out.”

This article focuses on the financial and benefits implications of departing federal service in mid- or late-career for employees who must rely on continued employment for substantial ongoing economic obligations, such as children’s college educations or home mortgages. The short answer is that for many mid- to late-career federal employees with substantial financial obligations, it will make financial sense to stay put. But there are many exceptions and considerations.

eligible dependents. To carry FEHB coverage into retirement, separating employees must be entitled to retire on an immediate annuity under a retirement system for civilian employees and usually must have been continuously enrolled (or covered as a family member) in any FEHB plan(s) for the five years of service immediately before the date of separation. The exceptions to this requirement are agency-offered early retirement or involuntary separation, such as through a reduction-in-force.

Many individuals also may be eligible for military veteran health benefits or health benefits through a military spouse or a spouse eligible for the FEHB. Given that most private-sector employers are not offering new employees pensions nor do they generally provide health insurance coverage that

AGE, SERVICE, AND HEALTH

continues into retirement, those can be critical federal benefits that are reduced or left behind. In addition, portable health care benefits can also be a competitive edge in landing second career jobs given that the new employer does not have to pay health care costs.

Therefore, many federal employees close to qualifying for unreduced federal retirement benefits in the near future are likely to stay put,

A critical consideration in determining if it makes sense to leave federal government is whether a federal employee qualifies for unreduced retirement benefits. That can make the difference between receiving a full federal pension or a deferred and/ or reduced one, as well as carrying Federal Employees Health Benefits (FEHB) Program benefits into retirement for both the federal employee and 36

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“ THE FEDERAL ANNUITY IS A HUGE DIFFERENCE FOR RETIREMENT SUCCESS.” —CAROL SCHMIDLIN, PRESIDENT, FRANKLIN PLANNING

particularly those within five years of eligibility for an immediate federal annuity, says Carol Schmidlin, president of Sewell, NJ-based financial planning firm Franklin Planning. “The federal annuity is a huge difference for retirement success,” says Schmidlin. “For those with a high-three salary of $80,000, they are looking at benefits of $500,000 if their retirement lasts 25 years, or $750,000 if the cost-of-living adjustment is added. That is a lot to make up for if you are depending solely on your own savings or employer matches.”

For those eligible for immediate retirement benefits who will need to continue working to generate sufficient income, a key question is how the increased annuity and other accumulated federal benefits obtained by staying put will compare to income from their compensation in a second job.

For those in the Federal Employees Retirement System (FERS), these benefits include the Thrift Savings Plan (TSP) contributions.

For some federal employees, a switch to a higher-compensated, non-federal job can make a large improvement in their retirement situation.

“Let’s say they qualify for retirement in their early 60s and they’ve got a federal pension and job in the private sector,” says Shawn Steel, a financial planner and attorney at Reston, VA-based financial advising firm ClearLogic Financial, Inc. “If they have five or so high-earning years, that can have a big impact on their retirement finances.

They can max out their 401(k) and over-50 catch up [retirement plan contributions]. While their tax burden will also increase, generally, they will still come out ahead.”

Beyond satisfying age and service requirements for a federal annuity and carrying FEHB into retirement, age and health are important considerations, notes James Marshall, deputy director of the Federal Benefits Institute at NARFE. An employee in his or her late 30s to mid-40s is generally in a different boat than someone considering a transition at a later age, Marshall notes. The former has more time for training, more time for growth in a new career, and likely more years of service in the full career. The future of federal service and associated benefits in the next 20 years is unclear, so

current assumptions may not always be accurate, Marshall notes. In contrast, older federal employees are much more likely to want to capitalize on their existing skills and knowledge elsewhere.

EFFECT ON BENEFITS

For both FERS and Civil Service Retirement System (CSRS) employees, leaving federal employment

earlier rather than later will reduce the size of any pension for which they are eligible. This reduction will occur by reducing the number of years by which their pension amount is multiplied, and for most, by the use of a “high three” average salary amount that is lower than if they had served more years in federal government, given likely withingrade step increases and pay raises tied to inflation.

These employees will not be eligible for a federal annuity at all unless they have served five years.

FERS retirees rely on a three-legged stool of a federal annuity, Social Security benefits and TSP savings. FERS employees who have reached their minimum retirement age (MRA), between age 55 and 57, are eligible to retire immediately with as little as 10 years of creditable federal service.

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their annuity upon separation from federal service.

The same reduction for early age would apply to a 60 or 61 year old with at least 10 years of creditable service, but less than 20 years.

While assets held in TSP accounts generally cannot be accessed until age 59-1/2 without a substantial 10 percent early withdrawal penalty, those separating from federal service during or after the year they turn age 55 (or age 50 for certain public safety employees) are exempt from the penalty, and those separating earlier can avoid the penalty through certain periodic withdrawal strategies.

FERS employees departing federal service will be able to keep their TSP accounts but will lose a government TSP contribution of 1 percent of basic pay, as well as additional agency matching contributions of up to an additional 4 percent of basic pay (although it should be noted that many privatesector employers offer matches to employee retirement plan contributions). They also will not be able to contribute non-federal earnings to the TSP, an extremely low cost retirement plan. However, they can continue to roll over non-federal individual retirement account balances into the TSP. Social Security benefits do not begin until age 62, although FERS employees eligible for voluntary retirement and who have reached their MRA prior to reaching age 62 can receive a FERS Annuity Supplement to partially make up for this benefit until they reach this age. FERS Annuity Supplements are subject to a reduction of $1 for each $2 earned if income exceeds a cap of $17,040 in 2018. Social Security earnings exceeding that cap are subject to an identical reduction from age 62 until reaching full retirement age, which is currently age 66 or 67 for nearly all federal employees. In addition, Social Security benefits usually will be larger if an employee defers claiming benefits until age 70.

The Windfall Elimination Provision also may reduce the Social Security benefits of CSRS plan participants who began their federal employment prior to 1983.

Voluntary Early Retirement Authorities allow agencies to offer all or certain classes of employees the right to retire early, with a requirement that 38

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the employee is age 50 with 20 years of service, or any age with 25 years of service. For many wishing to depart for second careers, such authorities are likely to be the ticket to get into their second career early with pension and health benefits, but there is no requirement for agencies to offer them to any or all employees.

As for Voluntary Separation Incentive Payments, bonus payouts that some agencies offer to incentivize separation from federal service, the fact that the award is capped at only $25,000 at most agencies (and $40,000 at the Department of Defense), means such incentives are not likely to prove decisive as to whether to exit federal government service — unless there are other compelling factors.

It is worth keeping in mind that exiting federal government affects many other federal benefits: • Assuming a loss of FEHB benefits, as discussed above, departing federal employees may be eligible for Temporary Continuation of Coverage (TCC) for up to 18 months under the FEHB. It is an expensive option, however, as TCC enrollees must pay the full premium for the plan they select, plus a 2 percent administrative charge. A federal employee spouse will enable a departing federal employee to maintain FEHB coverage.

Re-employment in federal service may, in some circumstances, allow carrying federal health benefits into retirement.

• Separating employees not eligible for immediate retirement benefits cannot enroll or continue Federal Employees Dental and Vision Insurance Program (FEDVIP) enrollment after leaving federal service and not retiring.

• FSAFEDS flexible spending account coverage terminates when federal employees separate.

• Federal Long Term Care Insurance Program (FLTCIP) coverage is not affected by separation.

• Separating federal employees are entitled to a free 31-day extension of coverage in Federal Employees’ Group Life Insurance (FEGLI) and conversion privilege to a non-group policy. The five-year service requirements for carrying it into retirement are the same as for FEHB benefits.

Marshall says it is important for those considering departing to have their agency’s HR unit run multiple retirement estimates or to talk to an experienced financial planner to help them make good decisions. “Don’t just try to figure it out on your own,” Marshall says.

ALTERNATIVES ELSEWHERE

Many factors in the stay-versus-leave analysis may depend on the compensation federal employees might receive in the private sector. “On average, I think an employee leaving federal government would need to look at getting 25-30 percent more in pay just to make up for the loss in benefits,” says Baltzell. “There is also the cost of potentially retraining or educating yourself, which leads to lost time.”

Many respondents in a 2014 narfe magazine survey on second careers reported income that was much less than they earned in federal government service, although many were looking to wind down their careers or work in an area of personal interest, rather than primarily for money. A considerable number of respondents reported post-federal service salaries similar to federal government in private sector alternatives, and some said they had considerably improved salaries by working for private-sector employers in the industries they regulated.

Only careful analysis of employment opportunities through research and interviews with those in, and who monitor, a given profession in a given market can truly establish the relevant federal versus non-federal comparison for a given federal employee,” notes Peter Sherer, founder and CEO of Washington, D.C.-based Experience Matters, a federal transitions counseling service.

For many federal employees who have transitioned, whether they came out ahead in the private sector as opposed to continuing in federal government over the longer term can sometimes be difficult to figure out. Barry Zuckerman, of Nanuet, New York, left federal service in 1997 after 22 years as an auditor at the Federal Deposit Insurance Corporation after his job was eliminated and he could not find other federal

opportunities. He retooled his skill set and spent nearly 20 years as an IT developer and support person, mainly at the Bank of New York, until retiring in 2016. He says that while his salary at the bank significantly exceeded that as an auditor, and while he was pleased with the transition and felt challenged and rewarded in his new career, the loss of 22 years of pension from the CSRS annuity that he eventually qualified for was a very large benefit loss. He is unsure of whether he ultimately came out ahead financially. He also notes he survived several stressful rounds of layoffs at the bank. “Heading to the private sector is a risk – you may come out ahead and you may not,” Zuckerman says.

Only a few survey respondents reported making dramatically more money in second careers outside of federal government. Some positions were in sales, such as real estate sales.

ONLY A FEW SURVEY RESPONDENTS REPORTED MAKING DRAMATICALLY MORE MONEY IN SECOND CAREERS OUTSIDE OF FEDERAL GOVERNMENT. W W W. N A R F E . O R G

|

39

THE PUSH

A clear consideration for many is just how adversely federal job security and benefits could be affected by federal administrative and legislative actions targeting federal employees. That is not clear. “All we can say regarding the likelihood of cuts to federal benefits is that it is likely that administration and congressional efforts to cut federal benefits will continue and we will continue to fight such actions, as we have largely successfully done to date,” notes NARFE Legislative Director Jessica Klement.

It is noteworthy that, as of early November, the worst-case scenario for federal employees had not yet transpired despite nine months of single-party 40

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control of both houses of Congress and the administration, with both having platforms that included reducing federal workforce benefits, employment levels and civil service protections. For example, in October, the House agreed to adopt a Senate version of a budget bill that did not contain a directive to realize tax reform through cuts to federal benefits. Likewise, fiscal year 2018 budget cuts to some agencies adopted in legislation, such as the EPA, were less than requested by the administration. Yet, a wide array of adverse legislative and administrative proposals remain.

—DAVID TOBENKIN IS A FREELANCE WRITER BASED IN THE GREATER WASHINGTON, D.C., AREA.

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Managing Money

A SPOUSE HAS NO EQUAL AS A BENEFICIARY

W

hen it comes to beneficiaries, a spouse as a designated beneficiary has no equal. Not only is the spouse permitted to remain as

beneficiary (and be subject to certain beneficiary rules), a spouse as designated beneficiary also has the option to elect a spousal rollover and become owner instead.

Typically, when the original owner of a retirement plan – such as a traditional IRA, Roth IRA, or an employer-based plan – dies, the Internal Revenue Code (IRC) permits a designated beneficiary to retain the remaining balance as an inherited retirement account, but stipulates the inherited balance “must be distributed over the life expectancy, or over a period not extending beyond the life expectancy,” of the designated beneficiary.

That’s IRC language for required minimum distributions (RMDs), which designated beneficiaries must begin by December 31 the year after death. But if a spouse elects the spousal rollover, the spouse as designated beneficiary becomes the owner of the inherited retirement plan, and from that point on, the surviving spouse will be subject to the same rules applying to any owner of a retirement plan.

For example, as an owner, the surviving spouse won’t be required to start RMDs until the year he or she turns 70-1/2

42

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(or not at all in the case of Roth IRAs). Furthermore, when calculating RMDs, owners will use the Uniform Lifetime table, versus the more punitive Single Life table used by beneficiaries.

In most cases, a spousal rollover will be the better choice, but there are circumstances in which the spouse will be better off remaining as beneficiary.

For example, a 10 percent early distribution penalty applies to owners taking distributions (the penalty applies only to earnings distributed from Roth accounts) made prior to age 59-1/2. However, a beneficiary is not subject to the 10 percent early distribution penalty. In other words, if the surviving spouse is younger than age 59-1/2, and needs access to the inherited retirement plan, he or she will want to remain as beneficiary in order to access the funds without penalty.

If a spouse remains as beneficiary, he or she will need to abide by the IRC’s RMD rules, but here again, a spouse as designated beneficiary is provided more favorable rules than a

BY MARK A. KEEN,

CFP®

non-spouse beneficiary. For example, rather than beginning RMDs the year after death, a spouse may wait until the year the deceased spouse would have turned age 70-1/2 (or the year after death, if later). This provides an older surviving spouse the opportunity to delay RMDs past his or her age 70-1/2.

There’s also an advantage to the way the RMDs are calculated. Both a spouse and a non-spouse beneficiary must use the Single Life table, but the spouse gets to recalculate life expectancy each year, while the non-spouse must use what’s called the set-term method.

Without going into detail, the recalculating method provides a longer payout period than the set-term method.

There is no time limit on when a spouse must elect the spousal rollover (note, however, once a spousal rollover has been elected, there is no going back).

This allows a spouse to leverage the beneficiary and spousal rollover options to enhance the tax-advantaged benefits of the inherited retirement account.

To illustrate, let’s consider two examples. First, we’ll assume Betty, who is younger than age 59-1/2, inherits a traditional IRA from her husband, Joe, and needs to take distributions to fund cash flow. In this case, the surviving spouse may remain as beneficiary until age 59-1/2,

BENEFITS RESOURCES NARFE offers members a wide range of information on federal benefits. Visit www. narfe.org/federalbenefits and www.narfe.org/ FederalBenefitsInstitute.

at which point, she may then rollover the inherited IRA into an IRA of her own. By combining the two options, the spouse avoids the 10 percent distribution penalty when she takes distributions before age 59-1/2, but also ultimately benefits from the more advantageous RMD rules applying to owners.

Next, we’ll assume Betty dies at age 60 and leaves her traditional IRA to her husband, Joe, who recently reached age 70-1/2. If Joe elected the

spousal rollover, he would have to begin taking RMDs immediately since he is now owner and has reached age 70-1/2. However, since Betty was younger, Joe could elect to remain as beneficiary and delay RMDs another 10 years until Betty would have turned age 70-1/2. At that time, Joe could elect the spousal rollover, get the inherited IRA into his name and take RMDs based on the Uniform Lifetime table.

Spouses as designated beneficiaries are provided certain advantages over other designated beneficiaries. Understanding the rules is key to maximizing the tax benefits of a retirement plan left to a surviving spouse.

MARK A. KEEN, CFP®, IS PARTNER, KEEN & POCOCK, 10300 EATON PLACE, 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.

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.

CONTACT INFORMATION o Mr. o Mrs. o Miss o Ms. Full Name _____________________________________________ Street Address _________________________________________ Apt./Unit ______________________________________________ City _______________________ State _____ ZIP _____________ Phone (__________) ____________________________________ Email ________________________________________________ Date of Birth _____ /_____ /_________ dd

mm

yyyy

Recruiter ID # (if applicable) _______________________________ Chapter Number (if applicable) ____________________________ (call 800-456-8410 for chapter information) MEMBERSHIP INFORMATION Member Number: _______________________________________ (New members) Membership is open to civilians in any agency of the federal or D.C. (before Oct. 1, 1987) governments eligible for a federal annuity.

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.

I am a (check all that apply)

o Active Federal Employee o Active Federal Employee Spouse

o Annuitant o Annuitant Spouse o Survivor Annuitant

Life Membership Fee Schedule Ages 30-39 40-50 51-55 56-60 61-65 66-70 71-75 76-80 81-90 91-100+

Single or Quarterly Payment Installments $1,796 $450.25 1,408 353.25 1,127 283.00 960 241.25 801 201.50 653 164.50 514 129.75 392 99.25 251 64.00 127 33.00

PAYMENT INFORMATION o Single Payment or o Quarterly Installments (4 payments) Life Membership fee amount: $ _____________________ PAYMENT OPTIONS o Check or Money Order (Payable to NARFE) o Charge my: o MasterCard o VISA o Discover o American Express Card No. _________________________________________ Expiration Date _____ /_______ mm

yyyy

Name on Card _____________________________________ Signature ________________________ Date ___________ MAIL THIS APPLICATION TO NARFE Member Records 606 N. Washington St. / Alexandria, VA 22314-1914 W W W. N A R F E . O R G

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43

2017

G FUND

F FUND

C FUND

S FUND

I FUND

NOVEMBER

0.19%

OCTOBER

0.19%

-0.11%

3.07%

2.90%

1.06%

0.07%

2.33%

1.41%

1.54%

SEPTEMBER

0.17%

-0.48%

2.06%

4.26%

2.52%

YTD

2.12%

3.33%

20.49%

17.67%

23.44%

1 YEAR

2.33%

3.49%

22.87%

19.80%

27.69%

3 YEAR*

2.06%

2.45%

10.95%

10.31%

6.33%

5 YEAR*

2.06%

2.38%

15.80%

15.27%

8.58%

10 YEAR*

2.40%

4.24%

8.36%

9.27%

1.83%

L INCOME

L 2020

L 2030

L 2040

L 2050

NOVEMBER

0.62%

0.99%

1.55%

1.80%

2.03%

OCTOBER

0.54%

0.83%

1.27%

1.46%

1.63%

SEPTEMBER

0.60%

1.02%

1.60%

1.87%

2.14%

YTD

5.76%

9.23%

13.61%

15.71%

17.63%

1 YEAR

6.43%

10.47%

15.42%

17.81%

20.03%

3 YEAR*

3.70%

5.12%

6.88%

7.67%

8.34%

5 YEAR*

4.47%

7.57%

9.65%

10.85%

11.93%

10 YEAR*

3.76%

4.79%

5.70%

6.08%

N/A

2017

*ANNUALIZED

*ANNUALIZED

RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP (For additional monthly returns, go to www.tsp.gov.)

G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)

OPM RETIREMENT CLAIMS PROCESSING STATUS

2016

2017

For the Record

STOCK MARKET SURGES IN HOPE FOR TAX REFORM

THRIFT SAVINGS PLAN FUND RETURNS

Claims Received

Inventory

Avg # of Days (Steady State % Processed in to Process Case in is 13,000) 60 Days or Less (FYTD) More Than 60 Days

OCTOBER 7,326 16,677 NOVEMBER 5,065 16,019 DECEMBER 5,483 15,097 JANUARY 15,317 23,087 FEBRUARY 9,114 23,916 MARCH 7,216 20,530 APRIL 6,581 18,932 MAY 5,548 16,140 JUNE 6,141 14,530 JULY 10,070 17,091 AUGUST 7,136 17,125 SEPTEMBER 8,810 16,828 OCTOBER 8,850 18,860

58% 60% 56% 51% 56% 61% 56% 54% 55% 55% 57% 57% 59%

91 94 95 89 104 105 80 89 99 98 105 93 93

FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. Source: OPM 44

| J A N

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U.S. stock market indices set records in November, supported by continued signs of economic growth and corporate profits, as well as optimism about prospects for tax reform. The C Fund and the S Fund made solid gains as geopolitical concerns did not provide much headwind.

The I Fund’s positive returns resulted from the dollar’s decline as overseas stock markets were generally weaker. Debate over Federal Reserve policy continued as interest rates moved mostly higher. In turn, the F Fund showed a slight loss.

All L Funds gained.

—BY SEAN MCCAFFREY, DEPUTY CHIEF INVESTMENT OFFICER, THRIFT SAVINGS PLAN

COUNTDOWN TO COLA

T

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.15 percent in October 2017.

To calculate the 2019 cost-of-living adjustment (COLA), the indices of July, August and September 2018 will be averaged and compared with the 2017 third-quarter average of 239.668. The percentage increase, if any, determines the COLA. October’s index, 240.573, is up 0.38 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 2.20 percent higher than the December 2016 base index of 235.390.

The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes.

MONTH

OCTOBER 2017 NOVEMBER DECEMBER JANUARY 2018 FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER

CPI-W

240.573

Monthly % Change

-0.15

% Change from 235.057

0.38

Donate to NARFE Programs Support Alzheimer’s Research

YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.

WRITE YOUR CHAPTER NUMBER ON CHECK; MAKE IT PAYABLE TO: NARFE-Alzheimer’s Research

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

Please circle: Mr. Mrs. Miss Ms. AND MAIL TO: Name: Alzheimer’s Association Address: 225 N. Michigan Ave., 17th Floor City: State: ZIP: Chicago, IL 60601-7633 Chapter Number: Credit Card Information:

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$12,442,949* Alzheimer’s research.

Signature

Join the Silver CIrcle CLIP THIS CONTRIBUTION FORM AND MAIL TO: NARFE Silver Circle 606 N. Washington St. Alexandria, VA 22314

•For a contribution of $25 or more, you will receive a Silver Circle pin, and your name will be listed in narfe magazine with other contributors.

•For a contribution of $1,000 or more, your name will be placed on the “Wall of Fame” at NARFE Headquarters.

YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.

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Enclosed is my Silver Circle contribution: $ ID # (ID # may be found on your narfe magazine label or your NARFE membership card)

Name: Address: City: State: ZIP: Silver Circle contributions are NOT deductible for federal income tax purposes.

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Give to the Scholarship and Disaster Funds

PLEASE MAIL COUPON AND CHECK TO: FEEA 1641 Prince St. Alexandria, VA 22314

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

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(Please make check payable to NARFE Silver Circle.)

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MAKE CHECK PAYABLE TO: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund.

Date

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I would like to help with my contribution.

Scholarships are available to children, grandchildren and great-grandchildren of federal civilian retirees and current federal employees who are NARFE members.

NARFE-FEEA Disaster Fund NARFE-FEEA Scholarship Fund

Amount: $ Amount: $

Name: Address: City: State: ZIP: To make credit card contributions, visit NARFE Scholarships at www.feea.org/givenarfeschol or NARFE Disaster Relief at www.feea.org/givenarferelief.

/

NARFE News

WEBSITE AND BLOG POLICIES NARFE has adopted policies that demonstrate our commitment to the privacy of our members and other website users. We strongly believe that all information provided via electronic commerce and online activities must be used responsibly and appropriately.

Please review our policy at www.narfe.org/privacy.

APPLY FOR NARFE SCHOLARSHIPS

T

he 2018 NARFE-FEEA Scholarship Program, open to children, grandchildren and great grandchildren of NARFE members, will run through March 21, 2018. Applicants must be high school seniors planning to attend their first year of an accredited college full time (in a two- or fouryear degree program) in the fall/ winter of the award year.

Students can access the online application from the NARFE

website at www.narfe.org/ scholarships. For complete details on eligibility requirements and how to apply, visit https:// feea.org/our-programs/ scholarships to download the scholarship brochure and instructions and go to the 2018 Scholarship Application.

In 2018, 20 students will be chosen to receive a $1,000 award.

The NARFE Scholarship Program relies on the generosity

NARFE also has updated our policy for our members-only blog. This policy can be found at www.narfe.org/member/blog/ policy.cfm.

of donors. To make a taxdeductible contribution, checks must be made payable to NARFEFEEA Scholarship Fund and mailed to NARFE Scholarship Awards, c/o FEEA, 1641 Prince St., Alexandria, VA 22314.

You also can use the donation coupon that appears every month in narfe magazine (p. 45 of this issue). For additional information, please email scholarship@narfe.org.

NARFE CHAPTERS: A LOCAL CONNECTION

A

N ARFE chapter can be found in nearly every city and town across the USA, as well as in Puerto Rico, the Virgin Islands, Panama and Guam. These local representatives of NARFE offer a host of benefits and opportunities for their members. Join a local chapter to: Make Yourself Heard.

NARFE’s chapters provide critical grassroots support for NARFE’s national legislative agenda. Your benefits are under attack and NARFE is in the fight to preserve them. Chapter members let their legislators know what’s 46

| J A N

2 018

Arlington, VA NARFE chapter celebrates its 70th anniversary

on their minds and open doors for NARFE’s legislative team in Washington, D.C. Stay Informed. In addition to the rich communications from Headquarters, chapter newsletters,

websites and meetings expand on the local and state issues affecting the federal community. Every NARFE chapter is unique, offering speakers and activities that meet the interests of its members.

Find Community. NARFE chapters unite federal employees, retirees, their spouses, and surviving spouses and provide an opportunity to connect with fellow Feds, get involved in leadership and governance, and develop close and lasting friendships.

To find a local chapter, visit www. narfe.org/chapter locator/search or call 703-838-7760, ext. 204.

ALL NEW! NARFE’S PREMIER CONFERENCE AUGUST 26-28, 2018 • JACKSONVILLE, FLORIDA HYATT REGENCY JACKSONVILLE RIVERFRONT

Jacksonville, Florida sets the stage for FEDcon18 – the premier event celebrating the dedication of America’s civil servants.

FEDcon18 KEYNOTE SPEAKERS

MIKE MASSIMINO Excellence in Civil Service Former NASA astronaut, Columbia University engineering professor

MARA LIASSON Political Update

National political correspondent for NPR and contributor to FOX News Channel

TAMMY FLANAGAN Rethinking Retirement Federal benefits expert and counselor, NARFE Institute presenter and Government Executive columnist

FEDcon18 REGISTRATION FEES 2018 DATES

MEMBER

NON-MEMBER

SUPPLIER

DAY

Early Bird

$150

$210

$325

$100

Regular

$175

$235

$325

$100

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$200

$260

$325

$100

February 1-March 31 April 1–August 25 August 26–August 28

GALA TICKETS START AT $65.00 CHECK BACK OFTEN at www.narfe.org/FEDcon18 for conference updates!

NARFE, the National Active and Retired Federal Employees Association, provides legislative advocacy to protect and preserve the earned pay, retirement and benefits of federal employees, retirees and their survivors. NARFE provides expert education on and assistance with benefits for all members of the organization.

W W W. N A R F E . O R G | 47

Active and Retired Federal Employees ...

Join NARFE Today!

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

Who Should Join the National Active and Retired Federal Employees Association?

If your future security is tied to federal retirement benefits – federal retirees, current employees, spouses and individual survivors – you should join NARFE.

NARFE MEMBER BENEFITS

• • • • •

Get monthly issues of narfe magazine with news and insights for the federal community.

Access the NARFE Federal Benefits Institute for powerful resources to help you fully understand and manage your benefits.

Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits.

Visit the Member Perks page for a full listing of the many time-, money- and hassle-saving benefits available only to NARFE members.

The opportunity to get involved at the local level by joining a chapter in your area.

1Q6

NARFE MEMBERSHIP APPLIC ATION q YES. I want to join NARFE for the low annual dues of $40. q Mr. q Mrs. q Miss q Ms.

____________________________________________________

Full Name

____________________________________________________

Street Address

____________________________________________________

Apt./Unit

____________________________________________________

City

State

ZIP

____________________________________________________

Phone

____________________________________________________

Email

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

q Annuitant Spouse q Survivor Annuitant

q Please enroll my spouse _______________________________________________

Spouse’s Full Name

_______________________________________________ Spouse’s Email

THREE EASY WAYS TO JOIN 1. Complete this application and mail with your payment to NARFE / Member Records / 606 N. Washington St. / Alexandria, VA 22314-1914

2. Join online at www.narfe.org.

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

PAYMENT OPTIONS q Check, Money Order or Bill Pay (Payable to NARFE) q Bill me (NARFE membership will start when payment is received.) q Charge my: q MasterCard

q VISA q Discover

q AMEX

_________________________________________________ Card No. Expiration Date _____ /________ mm

yyyy

_________________________________________________ Name on Card _________________________________________________ Signature _________________________________________________ Date

TOTAL DUES $40 Annual Dues X ___________ = ___________ Per Person # Enrolling Total Dues Dues payments are not deductible as charitable contributions for federal income tax purposes.

Looking to meet others in the federal community and participate in NARFE at a local level? Call 800-456-8410 to learn about a NARFE chapter in your area.

Or, if known, add Chapter # to join now ________________

MAY WE THANK SOMEONE? If applicable, please provide the name, membership and chapter number of the member who introduced you to NARFE: _________________________________________________ Recruiter’s Name _________________________________________________ Recruiter’s Membership ID _________________________________________________ Recruiter’s Chapter Number

NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties without your express permission.

NARFE’s Dues Withholding Program What is dues withholding?

It is a dues-payment method that gives NARFE members (retirees) the option of having their annual NARFE membership dues deducted from their annuities on a monthly basis.

Advantages • Save 15% off your annual NARFE dues!

• Sign up your spouse and double your savings!

• You’ll never get another dues reminder from us!

• Your monthly payment is affordable and convenient!

• You may cancel your dues withholding at any time!

How does it work?

One-twelfth of your total dues is automatically deducted from your monthly annuity. Your monthly deduction is determined by the following formula: (NARFE dues ÷ 12) + (Chapter dues - if applicable ÷ 12) = Total Monthly Deduction How do I sign up?

It takes 60-90 days to process your application. Once the process is complete, you will receive a special membership card distinguishing you as a NARFE dues-withholding member.

To learn more about dues withholding, call 800-456-8410.

Retirees, spouses of retirees and annuitant survivors are eligible for dues withholding.

NARFE Dues Withholding Application for Retirees YES. I want to enroll in NARFE’s Dues Withholding Program (Annual NARFE dues of $34 and, if applicable, Chapter dues of record to be withheld annually.)

Social Security Number (9-digit number)

– Mr.

Mrs.

Civil Service Annuity Number

– Miss

C S

Ms.

–

–

–

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

Full Name ______________________________________

NARFE MEMBERSHIP INFORMATION

Street Address __________________________________

NARFE Membership ID ____________________________________

Apt./Unit _______________________________________

NARFE Chapter # (If applicable) _______________________________

City _________________________ State _____ ZIP _____ Phone (__________) ______________________________ Email __________________________________________ Date of Birth _________ /_________ / ____________________ dd

mm

yyyy

YES. I Also Authorize My (NARFE Member) Spouse’s Dues To Be Withheld From My Annuity. (Additional annual dues of $34 and, if applicable, chapter dues to be withheld annually.)

If YES, enter spouse’s information below.

Spouse’s Name ___________________________________________ ________________________________________________________ Spouse’s Membership ID ___________________________________

AUTHORIZATION (Withholding will begin in 60-90 days). No payment should be forwarded with application.

I authorize the United States Office of Personnel Management to make appropriate deductions from my annuity payments, not to exceed the amount certified by the National Active and Retired Federal Employees Association as the amount of dues for which I am annually obligated, in accordance with elections I made above, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I made. Please allow 60-90 days for processing.

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

Signature of Annuitant or Survivor-Annuitant

Date

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

MAIL THIS FORM TO: NARFE, ATTN: Member Records, 606 N. Washington St., Alexandria, VA 22314-1914 www.narfe.org 800-456-8410 rr@narfe.org Do not send money with this form

DW-2 (10/17)

Member Perks

SAVE MONEY WITH NARFE PERKS NARFE appreciates your service, and so do businesses across the country.

Whether you are planning your next vacation or planning for retirement, members can save money on everyday purchases, thanks to our Affinity Partners.

It’s just one more way we’re able to say “thank you” for being a NARFE member.

INSURANCE

MiniMoves 800-300-6683 GEICO 800-368-2734 www.geico.com/fed/narfe GEICO offers a special discount opportunity for NARFE members. To find out how much you could save, visit our website or call today and mention that you are a NARFE member. Have your current coverage information available in order to secure a comparable quote. Your completed quote will help benefit NARFE! For complete terms and conditions, visit www.narfe.org/memberperks.

NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed exclusively for NARFE members, plans administered by Mercer Health & Benefits Administration LLC: Group Term Life Insurance, Senior Age Whole Life Insurance, Senior Term Life Insurance, Group Hospital Income Insurance, Hospital Income and ShortTerm Recovery Insurance, and Pet Insurance.

MOVING SERVICES

Bekins Van Lines 800-456-6832 narfe@bekins.com All NARFE members will receive contracted pricing for all interstate shipments. This will apply to packing, transportation and full-value coverage against damages. Please mention you are a NARFE member.

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NEW

MiniMoves is America’s only national mover exclusively focused on small shipments; a piece, a room or a full condo. There’s no minimum weight charge. Our binding quote helps you plan your move with confidence. Member discount - $25 off 500 pounds; $50 off larger moves. Use code 1292.

Wheaton World Wide Moving 800-248-7960 narfe@wvlcorp.com At Wheaton, we know interstate relocating is much more than trucks and boxes. Moving is not simply an address change. It’s a life change. With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation.

We offer you, as a NARFE member, benefits to help you have a positive interstate relocation experience. Call today and mention you are a NARFE member to start the moving process.

PRODUCTS

Omaha Steaks 800-228-9055 www.omahasteaks.com/ NARFE Since 1917, Omaha Steaks has been delivering customers the finest gourmet steaks, seafood, poultry, pork, sides and desserts. Omaha Steaks make memo-

rable gifts for any holiday, or you can enjoy a gourmet meal right at home.

NARFE members can enjoy FREE SHIPPING on select combos and an additional 10% DISCOUNT at checkout! If calling, use promo code YTZ.

NEW

Purchasing Power 866-670-3479 purchasingpower.com/NARFE With Purchasing Power, thousands of brand-name products are within reach.

As members of NARFE, you can buy today and pay over time through payroll or annuity allotment. Choose from the latest computers, appliances, vacation packages and more. Never worry about hidden fees, credit checks or interest.

Pay over 6 or 12 months, and you’re done. Save 5% with code NARFEVIP.

TELECOMMUNICATIONS

Verizon FiOS www.narfe.org/memberperks NARFE members can save up to $10 a month on a new qualifying Triple Play bundle with Verizon Fios Internet, TV and home phone service – savings of up to $120 per year. This exclusive onlineonly savings is only available to new Verizon customers or those upgrading to the Triple Play Package.

TRAVEL

Alamo 800-462-5266 www.alamo.com Drive Happy® with Alamo® where

NARFE members receive year-round discounts. Call or visit our website today and reference Contract ID 262544.

Avis Car Rental 800-633-3469 www.avis.com Avis Car Rental is one of the world’s best-known car rental brands with approximately 5,500 locations in more than 165 countries. Avis has a long history of innovation in the car rental industry and is one of the world’s top brands for customer loyalty. Call or book your reservation now at Avis.com using the NARFE AWD number A701900.

Budget Car Rental 800-218-7992 www.budget.com Budget Car rental was founded in 1958 for the “budget-minded” renter. Today, with approximately 3,500 locations around the world, Budget is a leading rental car supplier now offering discounts to members of NARFE. Call or book your reservation now at Budget. com using the NARFE BCD number D871500.

Choice Hotels International 800-258-2847 www.choicehotels.com With 6,400 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. 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 through phone number or website above; cannot be redeemed at individual hotels.

Choice Hotels brands are: Comfort Inn, Comfort Suites, Sleep Inn, MainStay Suites and more.

WELLNESS

National 800-CAR-RENT www.nationalcarrental.com 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-CARRENT® and reference Contract ID 5282909. For complete terms and conditions, visit www.narfe.org/ memberperks.

Wyndham Hotel Group 877-670-7088 NARFE members receive up to 20% off the “Best Available Rate” at participating locations. Call and give the agent your special discount ID number, 8000002694, at time of booking to receive discount. Call to reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts, Days Inn, Ramada Inn, Microtel Inns and Suites and more. Advance reservations required through phone number above; cannot be redeemed at individual hotels.

NEW HearUSA www.hearusa.com/narfe The Nation’s Most Trusted Name in Hearing Care. Choose from 250+ hearing aids from 11 manufacturers with $0 co-pay for many plans. Wireless. Bluetooth. Smartphone compatible. Nearly invisible. Risk-free 60-Day trial. Free follow-up care. Free 3-Year warranty. Call 1-855-845-2706 to see if you qualify for 2 FREE hearing aids.

Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-ofthe-art ultrasound technology in your neighborhood. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website.

NEW

Wyndham NEW Extra Holidays 800-428-1932 www.extraholidays.com Excellent service and the finest comforts are standards you can always rely on with Wyndham Extra Holidays. With more spacious floor plans than a regular hotel, you can enjoy a One-, Two- or Three-Bedroom suite with separate living areas and partial or fully equipped kitchens. Please use promo code 8000002694 when calling or booking online.

Sunrise Senior Living www.SunriseSeniorLiving.com Sunrise Senior Living, a leading provider of high-quality, individualized, senior living services, offers NARFE members a special, discounted rate. Mention code: NARFE-discount during your visit and receive a one-time 5% off of suite/room rates at any of Sunrise’s U.S. communities for one year. For a complete list of Sunrise locations, visit www.SunriseSeniorLiving.com. For a complete list of any restrictions, visit www.narfe.org/ memberperks. For new move-ins only.

NARFE Member 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 and encourages its members to shop and compare before making a decision on any financial matter.

Check out these additional Member Perks on the NARFE website for more details!

W W W. N A R F E . O R G

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51

The Way We Worked

SEIZING TAINTED EGGS FOR SAFETY In this 1908 photo, Food and Drug Inspectors seize crates of contaminated frozen eggs. Following enactment of the 1906 Pure Food and Drugs Act, which forbade the manufacture, sale, or transportation of “misbranded” or “adulterated,” foods, these inspectors – predecessors to the modern Food and Drug Administration (FDA) – inspected facilities and products to ensure compliance. If inspectors found a product to be in violation they could seize, condemn and destroy it. A seller that was found in violation of the law could be fined and jailed. Today the FDA, now part of the U.S. Department of Health and Human Services, oversees a number of regulations to ensure food safety.

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

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DID YOU KNOW? In 1907, commissioner of the FDA Harvey W. Wiley named Walter G. Campbell one of the first 28 inspectors.

Campbell devised the legal process for the first seizure of violative products, wrote the first Inspector’s Manual (1908), and set up the FDA’s first project system to ensure uniform enforcement while giving top priority to health hazards. Campbell was also the leading architect of the present Federal Food, Drug, and Cosmetic Act, passed in 1938. Visit www.FDA.org.

B Bu igg tt er on s

ts o N rac

nt

Co

“My friends all hate their cell phones… I love mine!” FREE Car Charg er Here’s why.

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200

600

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30-Day Return Policy2

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Personal Operator Assistance Long Distance Calls Voice Dial

More minute plans and Health & Safety Packages available.

Ask your Jitterbug expert for details.

“My phone’s battery only lasts a short time.” Unlike most cell phones that need to be recharged every day, the Jitterbug Flip was designed with a long-lasting battery, so you won’t have to worry about running out of power.

tar Enabled

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Available in Red and Graphite.

“Many phones have features that are rarely needed and hard to use!”

The Jitterbug Flip contains easy-to-use features that are meaningful to you.

A built-in camera makes it easy and fun for you to capture and share your favorite memories. And a flashlight with a built-in magnifier helps you see in dimly lit areas. The Jitterbug Flip has all the features you need.

Enough talk. Isn’t it time you found out more about the cell phone that’s changing all the rules? Call now! Jitterbug product experts are standing by.

Call toll-free to get your

Jitterbug Flip Cell Phone

Please mention promotional code 107932.

1-877-556-8365

www.JitterbugDirect.com 47669

We proudly accept the following credit cards:

IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. 1Monthly fees do not include government taxes or assessment surcharges and are subject to change. Plans and services may require purchase of a Jitterbug Flip and a one-time setup fee of $35. Coverage is not available everywhere. 5Star or 9-1-1 calls can only be made when cellular service is available. 5Star Service will be able to track an approximate location when your device is turned on, but we cannot guarantee an exact location. 2We will refund the full price of the Jitterbug phone and the activation fee (or setup fee) 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 be deducted from your refund for each minute over 30 minutes.You will be charged a $10 restocking fee. The shipping charges are not refundable.

There are no additional fees to call GreatCall’s U.S.-based customer service. However, for calls to a Personal Operator in which a service is completed, you will be charged 99 cents per call, and minutes will be deducted from your monthly rate plan balance equal to the length of the call and any call connected by the Personal Operator. Jitterbug, GreatCall and 5Star are registered trademarks of GreatCall, Inc. Copyright ©2017 GreatCall, Inc. ©2017 firstSTREET for Boomers and Beyond, Inc.

TM

Grey Heather

Our warehouse is overflowing!

We need to make room so we’re clearing out our famously soft and warm Fleece Comforters! Search anywhere — skimpier “Sweats” cost at least Double our Price! Order all 6 Colors NOW! Machine wash polyester/cotton.

Black

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PO Box 8, Warren, PA 16366-0008

Card # ______________________________Exp.: ____/____ Name ______________________________________________ Address ________________________________Apt. # _____ City __________________________State ______ Zip ______ P Phone/Email ________________________________________

I enclose $________ purchase price, and only $5.99 shipping & handling for my entire order. Please add applicable state & local

2 pairs 29.98 4 pairs 56.45

Pant Sizes: S(30-32) M(34-36) L(38-40) XL(42-44) *Big Men ($3 more per pair): 2XL(46-48) 3XL(50-52) per pair 4XL(54-56) when you Inseams: buy 2 XS(25-26) S(27-28) M(29-30) L(31-32) 3 pairs 43.47 [XL(33-34) inseam available in S, M, L, XL waists only]

Imported

sales tax for the following states: AZ, CO, FL, GA, MA, MN, NE, NJ, PA, WI, & WV.

5 pairs 68.37

When you pay by check, you authorize us to use information from your check to clear it electronically.

Funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.

FREE Shipping!

78900003

Haband

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WHAT WHAT HOW 7MX–Ø1P5D –Ø1P61 WAIST? INSEAM? MANY?

6J GREY HEATHER ROYAL 1Ø Ø1 BLACK EB BURGUNDY Ø7 CHARCOAL Ø3 NAVY

Satisfaction Guaranteed or Full Refund of merchandise purchase price up to 90 days after receipt.

For Faster Service Call: 1-800-543-4810 or visit www.Haband.com