feb
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P.10
NARFE’s legislative successes
P.30 COVER STORY
set it and forget it?
TSP Lifecycle Funds Make Asset Allocation Automatic
P.22
Same-Sex Marriage Benefits Volume 91 • Number 2
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Feb
’15
WashingTon Watch
6
NARFE Testifies at House Hearing on Retirement Claims Backlog
7
Congress Extends Agency Authority to Hire Retirees
8
FY 2015 Funding Deal Avoids Government Shutdown
9
Budget Deadlines Threaten Federal Benefits
10 NARFE’s Legislative
Accomplishments in the 113th Congress
12 February 3 Is Deadline
for NARFE Legislative Conference Registration
22
12 NARFE to Lead FederalPostal Coalition
Cover Story set it and forget it? The TSP’s Lifecycle Funds make asset allocation automatic, but they may not be for everyone. Individual circumstances should be considered.
Columns
4 From the President 36 Managing Money 40 The Informed Citizen
30
DEPARTMENTS
same-sex Marriage benefits: A primer for feds in the wake of a key Supreme Court ruling.
14 Questions & Answers 42 For the Record: TSP
Investments, COLA Chart
44 NARFE News, 2015
Scholarship Application
On the Web
52 The Way We Worked
visit us online at:
www.narfe.org like us on facebook:
NARFE National Headquarters follow us on twitter:
@narfehq
ON THE COVER
Illustration by Bill Pragluski, Critical Stages, LLC
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february 2015 | Volume 91 | Number 2
Editor Margaret M. Carter Assistant Editor Ken Fanelli Editorial Administrator Toni Vallario
National Active and Retired Federal Employees Association NATIONAL OFFICERS RICHARD G. THISSEN, President; natpres@narfe.org JON DOWIE, Secretary/Treasurer; natsectreas@narfe.org
Graphic Design Charlene Gridley Editorial Board Richard G. Thissen, Jon Dowie
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.
REGIONAL VICE PRESIDENTS
REGION I James P. Crawford (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 603-630-5191 Email: seacaptains@metrocast.net REGION II Evelyn Kirby (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-604-1141 Email: ekirby@atlanticbb.net REGION III Jerry Janci (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) Tel: 662-412-2029 Email: lettermanj@aol.com REGION IV Edward J. Konys (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 937-470-0566 Email: region4vp@gmail.com 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
Here’s How to Contact Us… If you want to:
Join NARFE Call (toll-free): 800-627-3394 or go to: www.narfe.org Change your address, phone number or email Call (toll-free): 800-456-8410 Email: memberrecords@narfe.org
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: hlz17@aol.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) Tel: 360-692-9741 Email: lannyjean@comcast.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
For any other NARFE matter:
Call NARFE Headquarters: 703-838-7760 Email: hq@narfe.org Fax: 703-838-7785 Write: NARFE 606 N. Washington St. Alexandria, VA 22314
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 $45. 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 © 2015, 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
Let’s Keep up the momentum
N
ow that the new Congress is in place, the work to preserve our benefits begins in earnest. Please
stay vigilant for our action requests; we need to ensure that we are heard on Capitol Hill.
To that end, I testified in December before the House federal workforce subcommittee on progress being made by the Office of Personnel Management in reducing the backlog of federal retirement claims. Read about it on p. 6. Like many of you, I am looking forward to the 2015 NARFE Legislative Training Conference in March. The conference perennially attracts some of the most knowledgeable speakers in Washington, DC. I sincerely hope that every federation and many chapters are represented. The conference will culminate with our “Day on the Hill,” a
time to meet with our members of Congress and their staff. This opportunity for us to see and be seen in the halls of Congress couldn’t come at a better time as deficit reduction once again becomes a focus for legislators. Please join us at the conference and hone your advocacy skills. Early indications are that NARFE had another good year financially. Thank you all for your membership and your response to our fundraising activities. You make a real difference. I also extend thanks to all of the recruiters who participated in the membership drive that began in September and concluded at the end of December. We do not have the final figures yet, but I can assure you that there was a very noticeable increase in recruitment by members. I encourage you to maintain the same recruiting zeal, even though the incentive program has concluded. We need every member we can get to keep NARFE financially strong and politically potent. Finally, I want to remind all NARFE chapters to consider nominating deserving service officers for the NARFE Service Officer of the Year award. In the recent past, the number of nominations has been disappointing. The Service Officer Program is one of NARFE’s greatest benefits. We are off to a strong start in 2015. Let’s keep the momentum going!
Richard G. Thissen NARFE national President natpres@narfe.org
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NARFE testifies at House Hearing on retirement claims backlog
N
ARFE President Richard G. Thissen told Congress that the Office of Personnel Management (OPM) has made “remarkable improvements” over the past two years
in processing federal retirements, but he emphasized that the system is more costly and time-consuming than it should be, is still paper-based and must be modernized. He said Congress should appropriate sufficient funding for OPM to make necessary technology advancements. Thissen testified December 10 before the House Oversight and Government Reform Subcommittee on Federal Workforce, U.S. Postal Service and the Census. Thissen recalled that in January 2012, OPM had major problems
Thissen praises processing progress. 6
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with federal retirement annuity claims processing, amassing a 61,108-claim backlog. At that time, the average time to process an annuity claim was greater than five months, and many claims took far longer to process, he said. He credited OPM’s strategic plan (adding staff, extending call center hours and using temporary help, and establishing better communication with agency human resources officers), with creating positive results. The backlog was down to 14,039 as of November 2014, and processing times have improved. In May 2014, OPM began tracking the number of cases processed
within 60 days, with a goal of processing 90 percent of cases within that time frame. “At 83.4 percent in November,” Thissen said, “OPM is not meeting that goal but is coming close.” Out of the 14,039 cases in the queue in November, 12,460 (88.8 percent) were 1-60 days old; 768 (5.5 percent) were 61-90; 611 (4.4 percent) were 91180; and 200 (1.4 percent) were more than 180 days old. This is the third time NARFE has testified on the backlog. The Association testified before the House subcommittee in May 2013 and before a Senate subcommittee in February 2012. Thissen told the subcommittee that prior to preparing his remarks, NARFE sent an email message to NARFE members, asking for feedback on their experience with the retirement claims processing procedure, particularly over the past two years. “Contrary to the avalanche of complaints we heard three years ago, the responses from NARFE members were overwhelmingly positive,” he said.
Photos by Joshua Roberts
Washington Watch
Following their testimony, NARFE President Richard G. Thissen, right, and Kenneth Zawodny, OPM associate director, retirement services, exchange greetings.
But, he stressed, problems remain. “While OPM bears responsibility for processing the claims, a federal employee’s transition to a rewarding retirement does not start with claims processing,” he said, “It starts with the individual’s employing agency.” He said the governmentwide error rates for retirement submissions are in double-digit percentages. “There does not seem to be significant improvement overall in error rates from 2012 to 2014,” he said. “After two years, agencies should be performing better.” Thissen also said there is more work to do to modernize the system. He noted that OPM has developed an IT Strategic Plan, but emphasized that funding for these technology initiatives should come from the general fund, not the Civil Service Retirement and Disability Trust Fund. “We strongly support efforts by OPM to modernize its retirement services to improve efficiency and better serve federal retirees,” he said. “However, we remain skeptical of drawing additional resources from the Trust Fund simply because Congress is unwilling to provide adequate financing.” Thissen’s written testimony is available at www.narfe.org (click on the Legislation link on the Home Page, then select “Testimony Before Congress” on the left). To view a video of the hearing, go to the subcommittee website at http://oversight.house.gov/hearing/ addressing-backlog-federalemployee-retirement-process/. —By Jessica Klement, Legislative Director
CONGRESS EXTENDS AGENCY AUTHORITY TO HIRE RETIREES
F
ederal agencies will continue to have the authority to rehire federal annuitants without requiring their salary to be reduced by the amount of their annuity. A five-year extension of the authority was included in the National Defense Authorization Act (NDAA) for Fiscal Year 2015, which was signed into law by President Obama December 19. “This authority allows agencies to mitigate the loss of institutional memory caused by departing employees,” said NARFE National President Richard G. Thissen. “It helps ensure the government can function effectively while also filling critical gaps and providing training for the next generation of federal managers and employees. In its five years of use, the waiver authority has proven to be a valuable tool for agency leaders.” NARFE worked with Rep. Gerald E. Connolly, D-VA, to insert the provision into the Housepassed version of the NDAA, and with Sen. Susan Collins, R-ME, to ensure the Senate version included it, as well. Agency heads also supported an extension. Prior to the enactment of the authority in 2009, an agency rehiring an annuitant had to request a waiver from the Office of Personnel Management to ensure the employee’s pay was not offset by his or her annuity. Those caseby-case waivers often were not approved in a timely manner and were reserved only for emergency or unusual circumstances. “Over the last five years, this
authority has proved important for the successful recruitment, retention and mentorship of our federal civil servants,” Thissen said. “This is especially important now, as agencies balance workloads amid an ongoing retirement wave and sequestration-level funding.” Under the authority, rehired annuitants cannot work more than 1,040 hours during any 12month period and cannot make up more than 2.5 percent of an agency’s workforce. These limitations were included to ensure that agencies supplement, and not supplant, the current workforce. —By John Hatton, Deputy Legislative Director
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 877-217-8234 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.
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Washington Watch
FY 2015 FUNDING DEAL AVOIDS GOVERNMENT SHUTDOWN
W
ith hours to go before a government shutdown, the House of Representatives passed an appropriations bill to fund all government agencies with the exception of the Department of Homeland Security (DHS) through September 2015. DHS funding was extended only to February 27 to allow the incoming Republicanmajority Congress the opportunity to revisit issues, including immigration policy, before funding the DHS for the balance of the fiscal year. Because the bill contained both full-year funding for most agencies but part-year funding for other functions, the 1,600-page measure was dubbed the “CRomnibus,” combining the words “continuing resolution,” or CR, (a short-term spending bill) and “omnibus” (a multiagency measure). The bill was silent on the issue of federal pay, so the 1 percent pay raise for federal employees proposed by the Obama administration will take effect. The Senate passed the measure after satisfying procedural hurdles laid down by opponents of not just funding levels but policy riders included in the mammoth bill. Prior to final House action, the disposition of the funding bill and the potential for a government shutdown at midnight on December 11 was very much in doubt. A razor-thin 214-212 vote on a rule for debate cleared the way for consideration of the bill. While all House Democrats initially opposed the funding measure,
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House Minority Leader Nancy Pelosi, D-CA, and House Minority Whip Steny H. Hoyer, D-MD, parted ways, with Hoyer joining with 56 other Democrats and 162 Republican lawmakers in support of final passage. Sixty-seven Republicans and 139 Democrats voted against the measure. Most of the controversy surrounding the funding bill involved legislative riders, at least two of which are of interest to federal employees and retirees. One permits cuts in benefits for current retirees who are in “stressed” private multi-employer pension plans. Rather than let those plans go insolvent, the bill permits benefit reductions to keep the plans afloat. While federal retiree pensions are fully funded, the precedent of reducing retiree benefits midstream is a bad one, and NARFE will keep a close eye on the issue. For now, however, the bill does not affect federal employee pensions (see story at right). A second rider would significantly relax current campaign finance limits for donations to the major party campaign committees. Under current law, an individual can contribute no more than $32,400 per year to up to three national party campaign committees (House, Senate and national), for a maximum of $97,200 annually. The CRomnibus funding bill lifted those aggregate limits, so that an individual could contribute potentially as much as $777,600 annually. The language still must be interpreted, but the bottom line is that grass-roots organizations,
such as NARFE-PAC, will be at a further disadvantage compared to deep-pocket wealthy donors on the campaign trail. All the more reason to make sure our voices are heard! —By Alan Lopatin, legislative counsel
MYTH vs. REALITY Myth: The fiscal year 2015 funding bill passed in December 2014 allows the government to cut federal retiree pensions. Reality: That bill does not include any provisions that would cut federal retiree pensions. It only affects pensions of individuals who are in failing private multi-employer pension plans that are insured by the Pension Benefit Guaranty Corporation, a government entity. Multiemployer plans (often negotiated by unions with multiple employers in a single industry) spread the risk of failure by individual employers among many and were thought to selfinsure against the risk of business failure. But when an entire industry fails or declines, it leads to underfunding of the pension plan. The budget bill includes a provision that could result in cuts to current retirees’ benefits, but only if they are in a failing private multiemployer plan.
looming Budget deadlines threaten federal benefits
T
he beginning of the 114th has been delayed in recent years. Congress will provide After the president introduces several opportunities for his budget, the House and Senate Congress to target the pay and will adopt budget resolutions to benefits of federal employees and set spending levels, usually acted retirees in the name of deficit on by April 15. Under a process reduction. known as budget reconciliation, While Congress passed an the House and Senate can approve major budget legislation by appropriations bill in December that set most agency spending for a simple majority vote. It is in the budget reconciliation process that fiscal year (FY) 2015 (see story, the federal community could face p. 8), the budget process for FY its largest threats (see the story in 2016 starts early this year. Fedthe January 2015 issue, p. 8). eral law requires the president Other chances to inflict cuts to introduce his budget the first 2015-16_PAC_Coupon_2013 Coupon 10:11 AM in Page 1 raising the could occur bills Monday in February, although it 12/1/14
debt limit, extending Medicare physician reimbursement rates and reauthorizing the Highway Trust Fund. Among the options Congress may consider are: increasing retirement contributions for current feds, eliminating the Federal Employees Retirement System Annuity Supplement, switching to the Chained CPI for calculating cost-of-living adjustments, moving to five-day mail delivery and arbitrarily reducing the size of the federal workforce. —By Jason Freeman, political and legislative specialist
NARFE-PAC CONTRIBUTION FORM I would like to be a SUSTAINER and make a monthly credit card contribution to NARFE-PAC of:
q Please charge to my credit card (required for monthly contribution)
q $25/month
Credit Card Information
q $10/month
Monthly contributions of $10 or more qualify you to receive the NARFE-PAC Sustainer lapel pin, along with a NARFE duffle bag.
q Other: ______/month (minimum of $10) OR
Type:
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I would like to make a one-time contribution of:
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Mail to: National Active and Retired Federal Employees Association Attn: Budget & Finance
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606 North Washington St. | Alexandria, VA 22314
NARFE Member #: ________________________________ Name: __________________________________________ Address: ______________________________________________________________________________________ City: ________________________________________________ State: ____________ ZIP: _________________ 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
NARFE’s Legislative Accomplishments
T
he federal community continued to face unprecedented assaults during the 113th Congress (2013-2014). Accordingly, NARFE’s legislative efforts focused on defeating misguided proposals attacking federal employees and retirees. Here are NARFE’s accomplishments in
the 113th Congress, compiled by the NARFE Legislative Department staff. Prevented any damaging alterations to current retirees’ annuities.
• Successfully opposed a switch to the Chained CPI to calculate annual cost-of-living adjustments (COLAs), as proposed in the president’s fiscal year (FY) 2014 budget. Switching to
the Chained CPI would cost the average federal retiree $48,000 over 25 years by slowing the growth of COLA increases. The Chained CPI has not been adopted due, in part, to strong opposition by NARFE and other groups. In October 2013, NARFE hosted a successful press conference at the Capitol against the Chained CPI, with the participation of members of Congress and coalition partners representing other constituents who would be affected by the change. NARFE also participated in a rally against the Chained CPI at the White House, hosted by a coalition partner. Prevented passage of legislation adverse to the federal workforce.
• Prevented increased retirement contributions for current employees. As part of a budget
compromise, Congress increased the percentage of salary paid by new hires (starting in 2014) by 1.3 percent. However, just days before the deal was announced, it
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was reported that budget negotiators agreed to increase contributions for current employees by 1.2 percent. Strong opposition by NARFE and its allies in Congress helped limit the increase to new hires. In fact, NARFE’s work garnered it one of the “Top 10 Lobbying Victories in 2013,” as compiled by The Hill newspaper.
• Prevented reduction or elimination of federal retirement annuities. NARFE has been
successful in ensuring legislation to eliminate the defined-benefit pension of the Federal Employees Retirement System (FERS) for new hires is not enacted into law. Attempts to eliminate the FERS Annuity Supplement also have not been enacted, due to NARFE’s advocacy.
• Prevented arbitrary reductions in federal workers’ compensation benefits. The Senate
postal reform bill, S. 1486, included provisions that would have substantially reduced retirementage benefits for federal employees disabled by work-related injury or illness, and eliminated any augmented compensation for those with dependents. The bill stalled due, in part, to opposition to these provisions.
Prevented damaging alterations to, and worked to improve,
federal employees’ and retirees’ health benefits.
• Successfully opposed a proposal to dismantle the Federal Employees Health Benefits Program (FEHBP). H.R. 1780 would have removed active employees from the FEHBP and placed them in the exchanges created by the Affordable Care Act (ACA). By removing tradi-
tionally younger and healthier active employees from the pool of participants, retirees would be left in the program and face significantly higher costs. Eventually, the FEHBP would cease to exist, as participating as an active employee is a requirement for receiving coverage in retirement. NARFE was successful in ensuring this proposal did not move through the legislative process.
• Successfully opposed provisions of the Senate postal reform bill that would have increased premiums for federal employees and retirees across the board and threatened the loss of FEHBP coverage for postal employees. The original version of S. 1486 allowed for the creation of a separate postal employees health benefits plan, removing them from the FEHBP. It also would have created separate plans for postal retirees with Medicare coverage, but not for
113th Congress those without. The combined effect of these changes would have been an increase in FEHBP premiums across the board.
• Successfully opposed revised provisions of the Senate postal reform bill that would have mandated Medicare coverage for postal retirees. An amended
version of S. 1486, while an improvement from the original, would have forced all postal retirees to enroll in and maintain Medicare coverage as a condition of continued enrollment in their FEHBP plans. This would have resulted in significantly higher monthly health insurance premium costs for those forced to enroll.
• Successfully supported the addition of self plus one coverage to the FEHBP. Pursuant to the FY14 and FY15 budget deal, the Office of Personnel Management (OPM) will begin offering a self plus one option in the FEHBP in 2016. This option should result in lower premiums for two-person families.
Worked to improve pay and benefits for active and retired federal employees.
• Successfully supported an end to the three-year federal employee pay freeze. The three-year pay
freeze for current employees ended with an Executive Order issued in December 2013. Employees received a 1 percent raise in 2014, along with another 1 percent raise in 2015.
• Successfully fought for back pay to furloughed federal employees.
In a rare act of solidarity, the House voted unanimously to provide back pay to federal employees furloughed
as a result of the government shutdown. NARFE sent a letter to all members of Congress advocating for passage of the bill (H.R. 3223). Ultimately, back pay was provided in the bill that reopened the government.
• Helped draft pension-advance legislation. A bill to help protect
federal retirees from “pension advance” scams (H.R. 3310) was introduced in the House. NARFE worked with Rep. Matt Cartwright, D-PA, to draft this legislation.
• Spoke out in congressional testimony. NARFE testified before Con-
gress twice and submitted testimony on a variety of issues affecting the federal community including reducing the retirement claims backlog, the value of FEHBP, proposed reforms to workers’ compensation, and legislation reforming the U.S. Postal Service. Worked for enactment of Civil Service and Thrift Savings Plan (TSP) improvements.
• Successfully supported re-employed annuitant authority extension. NARFE worked to extend, for another five years, the authority of agencies to rehire federal annuitants on a limited, part-time basis without offsetting their salary with their annuity. This option is now available through 2019.
• Successfully supported changing the TSP default investment.
NARFE supported, and the president signed into law, legislation that changes the default investment for new TSP participants to the appropriate Lifecycle Fund (L Fund), instead of the G Fund, which provides lower returns
over the long term (H.R. 4193). TSP participants retain complete authority to allocate their investments among the various options as they see fit; this only applies if no choice is made. Helped ensure Capitol Hill staffers maintained benefits in the Health Insurance Marketplace.
• Successfully argued for the availability of the FEHBP in retirement. A provision of the
ACA moved members of Congress and their staff out of the FEHBP and into the health care exchanges the law created. NARFE submitted comments on OPM’s proposed regulations, arguing that traditional FEHBP plans should remain available to them in retirement, among other recommendations.
• Successfully worked to maintain Hill staffers’ employer contribution. Additionally, NARFE helped craft the framework to ensure Hill staffers would retain their employer contribution toward premiums for their new health plan options. Ultimately, OPM adopted several of NARFE’s suggestions when it issued final regulations on how these provisions were implemented.
THANKS, Members! NARFE THANKS all of the members who helped the Association ensure victory on these issues. “Your activism is crucial to successfully supporting our lobbyists in Washington, DC,” said NARFE President Richard G. Thissen. “Thank you!”
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Washington Watch
Feb. 3 Is Deadline for registering for Legislative Training Conference
D
on’t delay! February 3 is the deadline to register for the 2015 NARFE Legislative Training Conference. The conference, March 14-17, will take place just as the monthslong budget debate gets under way (see story, p. 9). Conference training topics include grass-roots organizing at the local level, planning for after the conference and beyond, and working with congressional offices that do not readily support NARFE. Training also will be offered to chapter and federation NARFE-PAC leaders. New this year, first-time participants will have an orientation on Saturday, March 14. Also new, participants will have an opportunity to meet with NARFE staff to get any final questions answered before going to Capitol Hill on Tuesday, March 17. The training sessions are in addition to speeches from na-
tional speakers and members of Congress, who will offer an indepth look at the issues facing the federal community. And there are always opportunities to network with fellow NARFE members and share your own experiences with grass-roots advocacy. Whether you play a leadership role or are active in grass-roots activities on your own, all NARFE members are invited to attend and participate in the conference. The issues being debated on Capitol Hill will have an impact on all NARFE members, and members of Congress want to hear from their constituents. NARFE encourages participation from members who have never attended a legislative training conference in the past to provide fresh perspectives and new stories to tell. The $175 registration includes six full meals, transportation to and from Capitol Hill and all materials, including resources for
meetings on Capitol Hill. Register by completing the form on the facing page or by going online to the NARFE website, www.narfe. org, and clicking on the Legislative Training Conference graphic. Federations should use their “ten percent funds” to assist NARFE members to attend. The conference will be held at the Renaissance Arlington Capital View Hotel in Arlington, VA. A special daily room rate of $175 has been negotiated. Hotel reservations also must be made by February 3. More information on the hotel, including a link to online reservations, is available at www. narfe.org/legislation or by calling 1-800-HOTELS-1. If you have questions about the conference, send an email message to sweissmann@narfe.org or call 703-838-7760 and ask for the Legislative Department. —By Sarah Weissmann, grass-roots program manager
NARFE TO LEAd federal-postal coalition NARFE HAS ASSUMED A LEADERSHIP ROLE in the Federal-Postal Coalition, a multiorganization advocacy alliance. NARFE Legislative Counsel Alan Lopatin will chair the Coalition, succeeding Bruce Moyer of the National Association of Postal Supervisors. Lopatin will be aided by Vice Chair Kori Blalock Keller of the National Association of Letter Carriers. Founded in the 1970s by federal and postal employee organizations as the Fund for Assuring an Independent Retirement (FAIR), the coalition originally organized to protect the earned retirement benefits of the federal workforce. Over the years, FAIR changed its name to the Federal-Postal Coalition and now includes 31 national organizations. To access a list of the member organizations, go to 12
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www.narfe.org, log in as a member, click on the Legislative Department Home Page, and then click on “NARFE Coalition Partners” on the left. “With the budget uncertainty ahead of us, I can think of no better way to ensure that we put up our best defense (and offense) in that process,” NARFE President Richard G. Thissen commented. “Alan Lopatin has long served NARFE well, and we welcome his continuing contribution to the effort.” Lopatin has a long history in the civil service policy arena, having started his career as counsel to the House Subcommittee on Civil Service. He subsequently served as deputy general counsel to the House Committee on Post Office and Civil Service (now Oversight and Government Reform).
NARFE 2015 Legislative
TRAINING CONFERENCE
March 14-17, 2015
Registration must be returned by February 3, 2015
REGISTRATION FORM
Each participant must complete a form. Please write legibly.
Name:
o Mr. o Mrs.
o Miss
o Ms. o Dr.
_______________________________ Last
NARFE Membership # ______________________
________________________
___________________________
First
Middle
Name as you would like it to appear on badge: _________________________________________________ Federation or chapter officer title for your badge (choose only one title — Examples: President, Ohio Federation; or NARFE-PAC Chair, Chapter 192/Raleigh, NC): ___________________________________________ ________________________________________________________________________________________ Home address: ____________________________________________________________________________ ________________________________________________________________________________________ Preferred phone: _____________________________ Email address: ______________________________ Notify in case of emergency: ________________________________________________________________ Name
$175 registration fee is not refundable. Please complete registration form and return with check made payable to NARFE, or charge to your credit card.
Phone number
o Charge to my credit card $____________ o MasterCard
o VISA
Exp. Date ________ / _______ (mm)
(yy)
Name on card (print) ________________________________ Signature ________________________ Date ____________
For Internal Planning Purposes Only:
For Internal Planning of March 17 on Capitol Hill:
Conference meals and events are included for registered attendees. Are you planning on attending the Saturday night dinner? o Yes
o No
Are you planning on attending the breakfasts on Sunday, Monday and Tuesday? o Yes o No Registered attendees may bring guests to all NARFE-provided meals for a separate $175 fee. Will you have a guest? o Yes o No Name of guest(s) _______________________________________________ Is this your first NARFE Legislative Training Conference?
o Yes
o No
I am a(n): o Active Federal Employee o Active Federal Employee Spouse o Annuitant Spouse
o AMEX
Card # ____________________________________________
Mail to: NARFE Legislative Conference Budget & Finance 606 North Washington St. Alexandria, VA 22314-1914
o Annuitant
o Discover
o Survivor Annuitant
Can NARFE include your name, chapter and title on a list of attendees that will be distributed to participants? o Yes o No
Do you plan to ride the NARFE-provided bus to Capitol Hill on March 17? o Yes o No Do you plan to return to the hotel from Capitol Hill on the bus later that afternoon? o Yes o No What time do you plan to leave Capitol Hill? _______________________
Questions & Answers
The following Questions & Answers were compiled by NARFE’s Federal Benefits Service Department staff. NARFE does not provide advice or assistance on legal, financial planning or tax matters.
employees
Q
FEHBP’s Five-year Requirement I am covered on my spouse’s work health insurance (he works for a state) for no additional charge, so I don’t carry the federal insurance. I understand that I have to purchase a federal health insurance plan for five years to have a right to have it in retirement. I wonder about the logic behind that rule, given that the federal government avoids its 75 percent contribution toward my insurance if I don’t carry it now. What is the reasoning behind this policy? Is there any movement to change it?
A
Five years is the requirement for employees to be vested in both the federal retirement systems and in the Federal Employees Health Benefits Program (FEHBP). Setting a minimum time for an employee to receive benefits offered by an employer is standard practice, especially when it comes to retirement and health coverage. It just happens to be five years for federal benefits. It would be hard
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for the government to fund the FEHBP if there wasn’t a minimum period requiring premiums to be paid. At this time, there are no legislative initiatives to change the current law.
WHAT is “offset” under CSRS Offset?
Q
I am a current employee under the Civil Service Retirement System
(CSRS) Offset retirement program. My human resources (HR) office has provided me with a preliminary calculation of my retirement if I retire at age 60. The calculation looks to be fairly straightforward, and the amount I will be getting looks good. So what “offset” is there under the CSRS Offset retirement?
A
CSRS Offset employees are covered by both CSRS and Social Security (see our feature story on CSRS Offset in the January 2015 issue of narfe magazine, p. 32). Under CSRS Offset retirement, your initial retirement annuity is computed as if you were a straight CSRS retiree, using all of your creditable service and three highest years’ average salary. The “offset” comes when you turn age 62. At that time, the Office of Personnel Management will recalculate your annuity using only the period of
service that was not under CSRS Offset rules (service where you paid into both CSRS and Social Security). That will, in all likelihood, reduce your monthly annuity considerably, while at the same time increase your Social Security benefit. The HR office doing the estimated retirement calculation should have informed you of this.
When will Phased retirement begin?
Q
I am a fisheries biologist with the National Oceanographic and Atmospheric Administration (NOAA) within the U.S. Department of Commerce (USDOC). I have 31 years of federal service under the Civil Service Retirement System (CSRS). I am still employed by USDOC, but I am contemplating retirement in mid-2015. I would very much like to take advantage of phased retirement (and am supported by my immediate supervisors); however, I have been unable to pry any information out of Workforce Management, NOAA or USDOC concerning when USDOC will begin accepting applications for phased retirement. I have been stonewalled on each approach to personnel managers within Commerce on if/when the Department will embrace phased retirement. The more they drag their collective feet on this issue, the more of us with tremendous amounts of corporate knowledge to share will throw up our hands and go out the door. Do you have any knowledge of when USDOC might offer phased retirement?
A
We don’t have a contact within the Department of Commerce to provide you with an answer to your question. The Office of Personnel Management recently completed and forwarded to agencies the final rules and regulations to implement the law. All agencies will need time to get their human resources staff thoroughly trained and up to speed on this new retirement option. Some agencies may do this faster than others. We hope all federal agencies will be ready sooner rather than later for, as you mentioned, potential phased retirement applicants such as you may not wish to wait and will retire, taking their skills and institutional knowledge with them.
retirees SSA’s Definition of “Substantial Earnings”
Q
I retired under the Civil Service Retirement System (CSRS), and I also am eligible for a Social Security benefit. You have discussed the Windfall Elimination Provision (WEP) in your magazine many times, but I haven’t seen anything that talks about “substantial earnings.”
A
The WEP is a Social Security law that affects the way the Social Security Administration (SSA) computes your benefit because you had wages where you did not pay into
the SSA retirement fund. Your Social Security benefit will be reduced unless you had 30 years of substantial earnings outside of your CSRS employment. Each year, the SSA establishes a figure for “substantial wages” for the year. A chart listing substantial wages since 1937 appears on the SSA website in its “Windfall Elimination Provision” publication www.socialsecurity.gov/ pubs/EN-05-10045.pdf. For example, substantial wages for 2008 until 2014 are as follows: 2008 $18,975 2009-11 $19,800 2012 $20,475 2013 $21,075 2014 $21,750. When SSA computes your Social Security benefit, it uses a three-tier formula. In the first tier, SSA uses a percentage based on your years of substantial earning. The other two tiers are the same for everyone. SSA counts your years of substantial earnings and selects the percentage that corresponds to that figure. The maximum percentage that anyone receives is 90. Here is the chart, which also may be found in the WEP publication cited above: 30 or more years 90% 29 years 85% 28 years 80% 27 years 75% 26 years 70% 25 years 65% 24 years 60% 23 years 55% 22 years 50% 21 years 45% 20 or less 40%.
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Questions & Answers
Social Security and Federal Retirement
Q
I retired under the Civil Service Retirement System (CSRS) and am age 64. My spouse is a currently employed federal employee, is covered by the Federal Employees Retirement System (FERS) and is age 62. If I file for and collect a Social Security benefit now (while I am currently getting a CSRS annuity), will that affect my spouse’s annuity or Social Security benefit when she files for both after her retirement?
A
Your benefits from Social Security based upon your own earnings records will not in any way affect your wife’s federal annuity benefit. Nor will your receipt of Social Security benefits in any way affect your wife’s earned Social Security benefits. You should file for your Social Security benefits. Keep in mind, however, that due to the Windfall Elimination Provision of the Social Security law, your Social Security benefits will be reduced unless you have 30 years of substantial earnings outside of your federal employment under CSRS for which you paid into Social Security.
Direct-Deposit change
Q
When is the last date on which I can make a change of the directdeposit financial institution for my February 2015 annuity payment?
A
Your retirement annuity is paid each month and covers the previous month. For instance, your monthly 16
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Employees and retirees are responsible for reviewing their statement and should immediately report premium errors. annuity payment dated February 2, 2015, covers the period from January 1, 2015, to January 31, 2015. OPM sends an electronic tape to the U.S. Treasury around the middle of the month that provides the annuity amounts and directdeposit addresses. Therefore, if you want your direct-deposit institution to be changed in time to have your February annuity payment deposited in your new account, we suggest you have your change of address sent in time to be received at OPM no later than January 2.
Survivor Benefit Percentage
Q
I think my husband is entitled to a portion of my pension and health insurance upon my death. I was covered under the Civil Service Retirement System (CSRS). I can’t remember what percentage it is. I know I allocated the maximum allowed at retirement. I tried emailing the Office of Personnel Management (OPM), but the reply came back in a message so secure that I couldn’t open it without making a phone call to get assistance. I quit. Can you help me?
A
Yes, we are able to answer this question. Because you, as a CSRS employee, elected the maximum survivor benefit for your spouse, he will receive 55 percent of your annuity if you predecease him. He also will
be entitled to your health insurance because you elected survivor benefits. If you had elected lessthan-full survivor benefits, you would have to contact OPM to find your election.
Who Pays for FEHBP Enrollment Mistake?
Q
My wife is a federal annuitant and carries me under her Federal Employees Health Benefits Program (FEHBP) health plan. The Office of Personnel Management (OPM) made a mistake and put her in a self-only health plan and not a family plan. I had the FEHBP plan ID card from the prior year and continued to have my medical expenses covered. OPM discovered the mistake and has billed her for the family premiums. Because they made the mistake, I think it is up to OPM to take care of the premiums.
A
The OPM Federal Employees Health Benefits Handbook states that employees and retirees are responsible for reviewing their pay statement and should immediately report premium errors for correction. If a mistake has been made, it is up to the individual to contact OPM immediately and have OPM adjust the premiums to the appropriate amount. You have every right to write to OPM and ask officials to reconsider their decision to charge you the premiums. The only way for you
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to get this reversed is to request reconsideration.
Disability Retirement
Q
When I retired, I qualified for full retirement under the Civil Service Retirement System (CSRS). Subsequently, I put together the paperwork to file for disability retirement. Two doctors documented that my headaches and depression impacted my work and that my migraines were an ongoing disability. I filed the paperwork in January 2013, within the one-year limit. I heard back from the Office of Personnel Management
(OPM) in May 2013 that I qualified for disability retirement and that further processing would be made to determine my disability amount. In the last week of December 2013, I got a letter from OPM stating that its records indicated that I had left the government after one year of service and withdrew my Civil Service Retirement System contributions and did not pay the amount back upon rejoining the government. OPM stated that in order for calculations for my disability retirement to be made, I had to pay back the amount plus interest, which was approximately $4,800. I paid that amount.
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I called OPM several times, got a recording to leave my number and someone would get back to me, but no one ever replied. I did talk with the individual who did the annuity calculation and was told that my annuity would increase $22 a month, but that this did not include my disability. I complained, and I am contemplating legal action.
A
The computation of a CSRS disability retirement involves two different formulas, and the retiree receives the larger of the two amounts. The first computation is known
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A simple idea… made possible with sophisticated technology. If you have trouble understanding a call, the Captioning 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 immediate 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. Captioned Telephone Service (CTS) is regulated and funded by the Federal Communications Commission (FCC) and is designed exclusively for individuals with hearing loss. In order to use CTS in your home, you must have standard telephone service and high-speed Internet
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Questions & Answers
NARFE at Your Service as an earned annuity, meaning that it is based on actual years of service and high-three years’ average salary using the regular retirement formula. The second computation is the guaranteed minimum formula, which is the lesser of: 40 percent of the high-three average salary, or a regular annuity projected to age 60 (your service is increased to reflect the years between your age at retirement and age 60). In all cases, the earned annuity is larger if you have more than 21 years and 11 months of federal service. We think OPM calculated your retirement as an earned annu-
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ity because it is larger than the annuity you would get based upon the guaranteed minimum. Receiving a disability annuity does not provide any additional federal benefits greater than a regular earned annuity. With regard to possible legal action, we do not keep a list of attorneys and cannot recommend one to you. To obtain an answer to a federal benefits question, NARFE members should call 703-838-7760 and ask for the Federal Benefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.
NARFE service officers are available to answer questions and to assist in helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. For the nearest service officer, call NARFE (toll-free) at:
800-456-8410. NARFE Service Centers also are available in some areas. Use the Service Center listings on the NARFE website,
www. narfe.org.
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Cover Story
Set It
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an d Fo rge t It? By David Tobenkin
TSP’s Lifecycle Funds Make Asset Allocation Automatic. But They May Not Be for Everyone. When Jon Cook, a financial counselor at the U.S. Army’s Rock Island Arsenal in Illinois, converted from being a contractor to a federal employee in 2008, he took the advice he had been giving other federal employees for years – “Join the Thrift Savings Plan (TSP) and invest in its Lifecycle (L) Funds” − and put his money where his mouth was. “I could not wait to join the TSP and invest in the L Funds,” says Cook, who retired in May and responded to a narfe magazine reader survey on the L Funds. “As the money coach at the installation, I was well aware of the advantages of the TSP and the L Funds. What could be better than
Illustration by Bill Pragluski, Critical Stages, LLC
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Set It and Forget It? investing in a set of index funds that automatically adjusts quarterly based upon my age? It was perfect. And since I joined the L 2030 Fund in 2008, the beginning of the Great Recession, and retired in 2014, I got to buy low and sell high!” says Cook. The Smart Savings Act, signed into law on December 18 by President Obama, makes the L Funds the default funds for federal contributions to new federal employees’ TSP accounts, beginning in October. By doing so, the number of participants in the funds, which automatically adjust investors’ holdings over the years from a high-growth, higher-risk investment portfolio to a more conservative one as retirement approaches, will dramatically increase. The Federal Retirement Thrift Investment Board (FRTIB) − which operates the TSP − and many employee and retiree advocates, including NARFE, have long been concerned that too many federal employees park their retirement savings in the existing default TSP fund, the G
Fund, which is made up of government securities. The G Fund’s low growth potential may not be appropriate for federal employees looking to accumulate wealth over the long term, they reasoned. So, should all federal employees follow suit? Just invest new dollars or transfer existing TSP money into one or more of the L Funds and, essentially, set it and forget it? Not necessarily, say investment experts and many narfe magazine readers. The L Funds offer a number of financial advantages, such as low costs and a disciplined, measured and professional asset allocation approach that will likely save a great number of federal investors from bad investment outcomes. Despite their set-it-and-forget-it nature, however, such funds still require periodic financial planning oversight, particularly as retirement approaches and in post-retirement. The L Funds are only one TSP investment option and may not be the best choice for a considerable number of federal employees and retirees, say financial experts and survey respondents. “We are trying to educate people to understand that asset allocation is important, but are we telling them that they should be in the L Funds? No, that’s not the message,” says Tracey Ray, chief investment officer for the TSP at the FRTIB. “They should make smart decisions. In communications with federal employees, we tell them that if they are not comfortable making allocations to different funds, the L Funds are there to help them do that. But we can’t recommend a particular fund because we don’t have access to individual investors’ financial and life details. They might have access to outside investments, marital income or payments from former jobs. In some cases, that could mean being entirely in the G Fund could be rational for them.”
THE BASIC IDEA
The L Funds allow investors to pick the date they plan to begin withdrawing their retirement savings and invest in a fund that automatically adjusts relative amounts of holdings in the five primary TSP funds. The objective is to allow high growth and risk in early years and stabil24
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The objective is to allow high growth and risk in early years and stability and safety through less risky investments as retirement draws near. ity and safety through less risky investments as retirement draws near. The L Funds do not include any exotic ingredients. Rather, they are mixes of the TSP’s five main funds, which are, themselves, index funds that track specific categories of investments: the C Fund, a stock fund, tracks the S&P 500, an index that includes medium- to large-size companies; the S Fund, a small-cap stock fund, tracks smaller companies; the I Fund tracks an index of international companies’ stock; the F Fund, a fixed-income fund, tracks an index of bonds, a generally less volatile investment than stocks, with correspondingly lower returns except in periods of rapid inflation or deflation; and the G Fund, which includes government securities, a class of investments that are the safest but have the lowest returns over longer periods. The L Funds debuted in August 2005 with five funds. When each fund matures, the money is shifted into the L Income Fund, the most conservative of the L Funds, which includes 74 percent in the G (government securities) Fund, 20 percent in the three stock funds and 6 percent in the F (bond) Fund. Five L Funds are currently open: the L Income Fund; the L 2020 fund, which matures in 2020; the L 2030 fund; the L 2040 fund; and the L 2050 fund. The progressions from a more risky growth orientation to conservative can be seen by comparing the L 2020 fund, which in October 2014 had 51.12 percent in stocks,
with the L 2050 Fund, which had 85.75 percent in stocks. The funds’ target maturity date is the date that the participant expects to begin withdrawing money from his or her account, which may be later than an employee’s retirement date. The funds are specifically designed around the assumption that an employee’s TSP holdings are only one of the three legs of the Federal Employees Retirement System (FERS) retirement-plan stool. They assume that retirees should receive 72 percent of their pre-retirement income in retirement, including roughly 53 to 54 percent from TSP payments, 24 percent from the FERS annuity and 22 to 23 percent from Social Security benefits. The L Funds have proven to be popular. Approximately 17 percent of total TSP participant balances are invested in them. More than 980,000 participants have all or part of their account balance invested in the L Funds as of November 2014.
FEDERAL SUPPORT OF LIFECYCLE FUNDS
The bill recently signed into law was supported by the FRTIB and its stakeholders, including NARFE, which is a member of the Employee Thrift Advisory Council, a group of 15 organizations representing civilian employees and retirees and a representative of the uniformed services. The new law changes the default investment for the 3 percent of salary automatically committed to the TSP for new hires from the G Fund to the L Fund most appropriate for the individual. It establishes this default only for new enrollees; others who were automatically enrolled in the TSP and have not made their own allocation would continue to have their funds invested in the G Fund. If a TSP participant makes his or her own asset allocation choice, the bill would not affect them. “We’re not going to sweep people in the G Fund into the L Fund. We didn’t ask for that authority,” says the FRTIB’s Ray. “But I think you can assume that when the L Fund becomes the default, that will give it an extra oomph of desirability in the eyes of others. We also will probably do a communications effort to G Fund investors to the effect that, ‘You are in w w w. n a r f e . o r g
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Set It and Forget It? the G Fund – you may want to consider switching to the L Fund’ after the bill is passed and implemented.”
KEY ADVANTAGES AND WHAT THE EXPERTS SAY
The L Funds offer investors a number of advantages besides simplicity. One key advantage of the L Funds, like all the TSP funds, is their remarkable low cost compared to private-sector alternatives. That is particularly the case for the L Funds, given that they involve a degree of portfolio management. “The TSP target-date fund has a cost of less than 3 cents per every $100 invested, whereas the industry average for target-date funds is 84 cents per $100, and even a low-cost, target-date fund such as Vanguard’s averages 17 cents, which is an amazing difference,” says Janet Yang, an analyst at Chicago-based investment research provider Morningstar. That is important because investment management costs, unlike returns of particular investments, are one of the few things that an investor can control, Yang notes. Then there are the advantages that the L Funds share with all target-date funds, that is their promise to automatically adjust the funds’ asset allocations to reduce the danger that an investor will make several common investing mistakes. These include: improperly allocating funds at a given point in time, such as investing too much in funds that are too conservative to provide growth, such as the G Fund, in early years; over-investing in funds that have too high a risk profile as retirement nears or when a large drop in stock prices could severely compromise retirement savings; or shifting funds out of stock funds or not investing in them after a stock market plunge, as occurred for many investors after the 2008 financial crisis. Such a reaction to events caused investors to miss out on the subsequent rebound in stock prices that followed. 26
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“For do-it-yourself employee investors, the L Fund is a valuable tool,” says Mark Atherton, president of the Reston, VA, financial planning firm Ticknor Atherton & Associates, who says that more than half his clients are federal employees. “With our clients, we focus on diversification, cost minimization and tax efficiency, and the L Funds have all of those attributes.” “The vast majority of federal investors should invest in the Lifecycle Funds,” says Jon Stein, chief executive and founder at Betterment.com, an Internet-based money management service in New York City that provides investors with customized investment plans. “They will make fund allocation decisions in a systematic fashion that investors would otherwise have to impose upon themselves.”
COMMON CAVEATS
The most common criticisms of the Lifecycle Funds are ones common to many targetdate funds: first, that they are insufficiently tailored to individual investors; and second, that they encourage investor complacency and passivity. “For a person currently working, the Lifecycle Funds are not bad investment vehicles, but they are one-size-fits-all,” says Michael Falk, a partner at Focus Consulting Group in Long Grove, IL, who no longer advises individual investors but researches and lectures on retirement planning issues. “It presumes that you have saved like the majority of people over your career and that you have similar outside investment interests to the majority of federal investors, which are dangerous assumptions.” “I like to build out portfolios specific to what’s going on with investors, and, as a result, I rarely recommend using the L Funds,” says Mark Keen, a financial planner at Keen & Pocock in Fairfax, VA, and columnist for narfe magazine. “I think, generally speaking, that the Lifecycle Funds can add a lot of value to investors who aren’t as diligent as they should be in rebalanc-
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Set It and Forget It? ing and becoming more conservative over time,” says Benjamin Muchler, managing partner of wealth management company Boston Research & Management, Inc., in Manchester-by-the-Sea, MA. “But if someone came to us with $1 million to invest, it’s highly unlikely we’d be considering Lifecycle Funds. You simply have more investment tools outside of the plan than in it.” Falk and other critics are also concerned about the general tone in employer literature for potential investors regarding target-date funds. They fear that descriptions of the funds’ automatic, set-it-and-forget-it allocation nature may lead investors to assume that they are a sound choice for most employees based upon inherent design, even if, as noted earlier, they are inappropriate for a particular federal employee. Some investors also may choose to be in other TSP funds for a variety of reasons. The G Fund, for example, has the unique advantage of being based on U.S. Treasury bonds and pays current interest rates with no downside risk. Those attributes have led Chris Mezines, a retired Internal Revenue Service manager, and many others to park a portion of their funds in that fund rather than the L Funds.
THE END OF THE LIFE CYCLE
The challenges of a one-size-fits-all approach become more significant as the L Fund target date is reached. As with a novel or a movie, designing a good ending for a target-date fund is no easy task. As noted, the funds transition into the conservative L Income Fund as they mature. But many federal employees who retire early may have 30 years of retirement ahead of them. In such cases, the L Income Fund may not produce adequate growth for these employees. “One-size-fits-all is absolutely not OK when investors retire,” Falk says. “Retirees should do a budget-versus-spending analysis to determine how much to hold in bond or stock investments. A Lifecycle Fund will not do that for them.” Given the very conservative L Income Fund portfolio, many placed in it may want to reallocate at least some portion of that fund to a more aggressive set of TSP funds. So what is the ideal retirement asset allocation? While Falk says it will differ for each investor, for many it will include more in equity than the L Income 28
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The L Income Fund may not provide adequate growth for employees who retire early. Fund provides. “I would start on the basis of 50 percent equity [stock], 50 percent in bonds and government securities,” says Falk. “What I suggest to retirees is that they take the total amount they spend and split it into a budget for needs and a spending plan for their wants,” says Falk. “Once you have that two-piece puzzle, you look at Social Security and pension payments to see how those guaranteed payments contrast with their budget. If these two annuities cover the budget, you could actually have the rest of your money in equities.” And it is here that the danger of passivity rears its head. To reallocate their assets, L Fund participants may have to overcome a lengthy period of inaction to muster the will to examine their holdings − essentially having to master a new skill at crunch time.
THE LARGER ISSUE
Some financial services experts also criticize aspects of the L Funds’ design. Some say the funds are too conservative; others point out that they contain fewer funds than some target-date funds. Despite the L Funds’ relatively more conservative and less diversified nature, Morningstar’s Yang notes that the biggest factor in whether retirement savings will meet the needs of retirees is how much they invested, not whether the L Funds had marginally more in equities or had an allocation to emerging markets. Still, at the end of the day, where does Yang park her own money? “Even though I’m theoretically a sophisticated researcher who looks at funds all day, I’m still in a target-date fund,” Yang says. “It’s a lot of work to research all the options, determine an appropriate allocation and manage rebalancing. Allowing a professional to do it has a lot of appeal.” —David Tobenkin is a freelance writer based in the greater Washington, DC, area.
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•
•
On June 26, 2013, in United States v. Windsor, the U.S. Supreme Court declared Section 3 of the Defense of Marriage Act unconstitutional. This section had prohibited the federal government from recognizing same-sex married couples as married for federal purposes. According to U.S. Attorney General Eric Holder, the decision was “consistent with our values as a nation and a triumph for equal protection under the law for all Americans.” Holder and the Department of Justice immediately began working with all federal agencies to identify every federal law, rule, policy and practice in which marital status was a relevant consideration and to ensure that married couples throughout the nation receive equal treatment from the federal government, regardless of their sexual orientation. As of November 2014, the federal government recognizes same-sex married couples in 32 states and the District of Columbia. In addition, the government recognizes marriages performed in Indiana and Wisconsin in June 2014. These marriages were performed immediately after federal district courts ruled that bans on same-sex marriages in those states were unconstitutional; but subsequent events in each state created confusion about the status of those marriages. “With each new state where same-sex marriages are legally recognized, our nation moves closer to achieving full equality for all Americans,” Holder said recently. “We are acting as quickly as possible with agencies throughout the government to ensure that same-sex married couples in these states receive the fullest array of benefits allowable under federal law.”
and Retirees
By Everett A. Chasen
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same-sex marriage benefits RETIREMENT BENEFITS
Federal employees are among those most affected by the Supreme Court’s ruling. “The Office of Personnel Management (OPM) has been committed to updating its policies and, where necessary, its regulations, to reflect the changes resulting from United States v. Windsor,” explains Kenneth Zawodny, OPM’s associate director for retirement services. While OPM could not provide an estimate of the number of federal employees and retirees who have married their same-sex partners, Zawodny suggests a number of new policies and benefits of which these men and women should be aware. Retirement is foremost among these. “Samesex spouses of federal employees and annuitants will be entitled to retirement benefits on the same basis as different-sex spouses,” he says. Those retirees who were in legal same-sex marriages before the date of the Supreme Court decision have until June 26, 2015, to inform OPM they have a legal marriage that now qualifies for recognition and to elect any changes they would like to make based on their new marital status. Employees who were married after the United States v. Windsor decision have two years after the date of their marriage to do so. All federal retirees who are married can elect a reduced annuity to provide a survivor annuity for their spouse: • Those who retired under the Civil Service Retirement System (CSRS) can elect any portion of their annuity as the base for the survivor annuity, payable in the event of their death. The survivor benefit will be 55 percent of the base that they elect. • Federal Employees Retirement System (FERS) employees can elect either a full survivor benefit, which is 50 percent of their unreduced annual basic benefit, or a partial survivor benefit, which is 25 percent of their unreduced annual basic benefit. OPM offers more information on this subject, including links to designation forms, at www.opm. gov/retirement-services/my-annuity-and-benefits/ life-events/#url=MarriageDivorce. OPM also has determined that in cases where federal annuitants, employees or former employees died before the Supreme Court’s decision, their surviving same-sex spouses may apply for survivor annuity ben-
efits − even if the deceased partner did not elect a survivor annuity on the spouse’s behalf prior to his or her death or if OPM had previously denied the spouse survivor annuity benefits. Those in that situation can download an application for benefits at OPM’s website at www.opm. gov/forms/OPM-forms/, call OPM’s Retirement Information Office at 888-767-6738 or email retire@opm.gov to request the application. Applicants who send email should include “Survivor Benefits Windsor Decision” in the subject line of their messages; and all applicants should provide a copy of their marriage certificate and their spouse’s death certificate with their applications.
HEALTH BENEFITS, LIFE INSURANCE AND OTHER COVERAGE
According to OPM’s Zawodny, “Benefits coverage is now available to a legally married same-sex spouse of a federal employee or annuitant, regardless of the employee or annuitant’s state of residency, in the same way that these benefits are available to legally married same-sex couples.” All legally married same-sex spouses, wherever they live, are now eligible family members under a family enrollment for health insurance benefits. In addition, the children of same-sex marriages are treated the same as those of opposite-sex marriages and are eligible family members according to the same eligibility guidelines. This includes coverage of stepchildren. Employees and annuitants have 60 days from the date of their marriage to make immediate changes to their Federal Employees Health Benefits Program (FEHBP) enrollment. They also are able to make changes to their coverage options during Open Season. For enrollees who are electing family coverage for the first time, benefits are updated on the first day of the first pay period after the enrollment request is received. The correct form to use for this is SF2809, available at www.opm.gov/forms/pdf_fill/sf2809.pdf. The Federal Employee Dental and Vision Benefits Enhancement Act of 2004 allowed OPM to establish arrangements under which dental and vision benefits became available to eligible federal and postal employees, retirees and their eligible family members on an “enrollee-pay-all” basis. The Federal Employee Dental and Vision Insurance Program (FEDVIP) allows dental and vision insurance to be purchased on a group basis, so
that premiums are competitive, and there are no pre-existing condition limitations. While FEDVIP’s rules for family member eligibility are not the same as FEHBP’s, all legally married same-sex spouses are now eligible family members under a family enrollment or a self plus one enrollment. Employees and annuitants have 60 days from the date of their marriage to make changes to their FEDVIP enrollment. They can also enroll for the first time or make changes to their coverage during Open Season every year. Same-sex spouses and dependent children of same-sex marriages can receive life insurance under Option C of the Federal Employees’ Group Life Insurance (FEGLI) Program. When Option C coverage is selected, all eligible family members are automatically covered, and the cost of the insurance does not change regardless of the number of eligible dependent children. (Dependent children are those who are unmarried and under age 22, or incapable of supporting themselves if they are 22 or older. This includes foster children, stepchildren and recognized natural children.) Legally married same-sex employees and annuitants also can apply for long-term care insurance under the Federal Long Term Care Insurance Program (FLTCIP). They may do this at any time. In addition, parents of legally married same-sex spouses of current federal employees are eligible as “qualified relatives” under FLTCIP, just as the parents of opposite-sex spouses are. Parents of annuitants are not eligible as qualified relatives. Finally, Federal Flexible Spending Accounts (FSAFEDS) are accounts to which federal employees contribute money from their salaries before taxes are withheld, and then are reimbursed for their out-of-pocket health care and dependent care expenses. Employees enrolled in FSAFEDS may now request reimbursement for eligible health care expenses incurred by a legally married same-sex spouse or a related child. In addition, childcare for a child of an enrollee’s same-sex spouse is eligible for reimbursement if the enrollee has a Dependent Care FSA. Newly married couples have a 60-day window after their wedding to enroll in FSAFEDS or to make changes to their existing account. Otherwise, they must wait until the annual FSAFEDS Open Season, or for another qualified life event, to make an enrollment change. FSAFED’s website is www.fsafeds.com, or phone 877-372-3337.
FAMILY AND MEDICAL LEAVE ACT (FMLA) Under the Family and Medical Leave Act of 1993, most federal employees are entitled to a total of up to 12 workweeks of unpaid leave during any 12-month period for the following purposes: • The birth of a son or daughter of the employee and the care of that son or daughter; • The placement of a son or daughter with the employee for adoption or foster care; • The care of a spouse, son, daughter or parent of the employee who has a serious health condition, or a serious health condition of the employee that makes him or her unable to perform the essential functions of his or her position; or • Any qualifying issue arising out of the fact that the spouse, or a son, daughter or parent of the employee is on covered active duty, or has been notified of an impending call or order to covered active duty in the Armed Forces. According to OPM’s Zawodny, “an employee legally married to a same-sex spouse may take FMLA leave to care for his or her spouse, regardless of the employee’s state of residency, on the same terms as may an employee married to a different-sex spouse.” Under certain conditions, according to OPM, an employee may use the 12 weeks of FMLA on an intermittent basis and can substitute annual leave or sick leave for unpaid leave under the act. Employees returning from FMLA leave must be returned to their positions or to an “equivalent position with equivalent benefits, pay, status and other terms and conditions of employment.” During FMLA leave, employees are entitled to maintain health benefits coverage and can pay the employee share of their premiums either during their leave or when they return to work.
Federal employees are among those most affected by the Supreme Court’s 2013 ruling.
same-sex marriage benefits Employees taking FMLA leave must provide notice of their intent to take the leave not less than 30 days before the leave is to begin − or as soon as possible in emergencies. Federal agencies can ask for medical certification for leave if it is taken to care for a spouse, son, daughter or parent who has a serious health condition, or if the employee himself or herself has a serious health condition.
DOMESTIC PARTNERSHIP BENEFITS
Federal employees in same-sex partnerships in states that do not recognize same-sex marriage and elsewhere may still be eligible for some of the benefits available to married couples if they are part of what OPM calls a “domestic partnership.” Domestic partnerships are defined in OPM’s regulations as a committed relationship between two adults of the same sex who are each other’s sole domestic partner and intend to remain so indefinitely; who live together, or would do so except for an assignment abroad or a similar obstacle; who share responsibility for a significant part of each other’s financial obligations; and who are not married to anyone else and are not anyone else’s domestic partner. These partners must certify, if asked, that they are in such a relationship; that they understand they cannot willfully falsify their status under penalty of law; and they must be willing to promptly disclose any dissolution or “material change” in the status of their partnership. “Same-sex and different-sex domestic partners are considered family members for purposes of most federal leave programs,” Zawodny explains. Federal employees can cover the child of a same-sex domestic partner under his or her FEHBP plan if the employee does not live in a state that authorizes same-sex marriage. According to OPM’s website, domestic partners − unlike same-sex spouses − cannot be covered under FEGLI’s family option but can be designated as beneficiaries (as can anyone else) of the employee’s policy. They can be eligible as a dependent under FSAFEDS only if they are claimed as a tax dependent, and can be designated to receive any lump-sum payment due to a federal employee upon that employee’s death. They are not eligible, however, to be classified as a dependent under the FEDVIP program. Same-sex domestic partners cannot presently receive the benefits available under CSRS 34
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and FERS to surviving spouses, former spouses and children of deceased annuitants. Federal employees with domestic partners can provide those partners with an insurable interest survivor annuity, however. Insurable interest survivor annuities allow federal retirees to choose a survivor annuity for someone who has a reasonable expectation of financial benefit from the retiree’s continued life. Those receiving this annuity must receive the full survivor annuity available under CSRS. The cost of the annuity, unlike the benefits for spouses, is based on the difference in age between the annuitant and the individual with the insurable interest (in this case, the domestic partner). The lowest cost for these annuities is 10 percent of the full annuity for someone who is older, the same age or less than five years younger than the annuitant. The highest cost is 40 percent for someone who is 30 or more years younger than the annuitant. Because the rules related to same-sex domestic partner benefits are complicated and changing, OPM has created a web page with the answers to frequently asked questions on this topic. It can be found at www.opm.gov/faqs/topic/domesticpartner/. Federal employees and their partners, of course, are not the only same-sex couples to have been affected by United States v. Windsor. “We will continue to extend federal benefits to same-sex couples to the fullest extent allowed by federal law,” said Attorney General Holder. “And we will continue to work − to the very best of our ability − to bring about a more equal future for Americans nationwide.” Federal employees with questions about their benefits should speak to their local office of human resources. Agency Human Capital Officers have received, and will continue to receive, guidance from OPM on all matters related to same-sex marriage.
ADDITIONAL INFORMATION
On June 20, 2014, the Department of Justice issued a Memorandum to the President on implementation of United States v. Windsor throughout the federal government, including what OPM has done. The memorandum can be found, in its entirety, at www.justice. gov/iso/opa/resources/9722014620103930904785. pdf. It includes links to significant OPM documents and guidance. —Everett A. (Ev) Chasen is a writer and a communications consultant, and coauthor of the book “The Manager’s Communication Toolbox,” published in 2012 by ASTD Press. He retired from the federal government in 2009 after 35 years of service.
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I
received many questions and comments related to my November 2014 column titled “Isolating IRA Basis for Tax-Free Distributions.” Most of the questions dealt
with how to track and report basis — after-tax dollars that find their way into a traditional individual retirement account (IRA) — and what happens if the basis isn’t tracked. But I also heard from NARFE members who said that their IRA custodian told them what I described wasn’t possible since the pro-rata rule applies. First, it’s important to understand that you can have basis in a traditional IRA only if you made nondeductible contributions to a traditional IRA or to an employer-sponsored plan that permitted after-tax contributions. You should file an Internal Revenue Service (IRS) form 8606 when aftertax contributions are made to a traditional IRA or when after-tax funds are transferred into a traditional IRA from an employer-sponsored plan. The 8606 is used not only to report and track your basis in traditional IRAs, but it’s also used to determine how much of any distribution, or Roth IRA conversion, will be tax-free. If you have basis in any traditional IRA, it’s important to understand the pro-rata rule and its implications. Most importantly, the rule forces you to aggregate the value of all traditional, SEP (Simplified
36
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Employee Pension) and SIMPLE (Savings Incentive Match Plan for Employees) IRAs when determining the tax-free amount of any distribution. This eliminates virtually any strategy (with the exception of the one described in November’s article) to isolate and distribute only basis. For example, let’s assume Janet has a traditional IRA worth $50,000, which consists entirely of deductible contributions and earnings. We’ll also assume Janet made a $5,000 nondeductible contribution to a second IRA on December 1, 2013, thinking she would be able to convert it tax-free to a Roth IRA in 2014. When Janet filed her 2013 tax return, she filed form 8606 to report the $5,000 after-tax contribution as basis in her IRA accounts. Assuming Janet converted the $5,000 IRA to a Roth IRA in 2014, when she files her 2014
By Mark A. Keen,
CFP®
tax return, she would use form 8606 to determine how much of her conversion would be tax-free. Form 8606 requires taxpayers to divide the total basis in all traditional IRAs by the sum of the total year-end value of all traditional IRAs (including SEP and SIMPLE IRAs), plus the value of any distributions taken during the year, plus the value of any Roth conversions executed during the year. Based on this, Janet divides her $5,000 basis by $55,000 (the year-end value of all her IRAs plus the Roth conversion). The result, 9.1 percent, is the amount of the $5,000 Roth conversion that is tax-free. As I mentioned previously, there is a special rule that makes it possible to isolate the basis in an IRA if you can transfer part of the IRA to an employer-sponsored plan, such as the Thrift Savings Plan (TSP). For more information on this rule, review IRS Publication 590, form 8606 and the instructions for form 8606. To illustrate this point, we will now assume Janet transferred $50,000 to her TSP account prior to executing the $5,000 conversion, which leaves her with a $0 IRA at year’s end. When Janet completes the 8606, she would still divide her IRA basis by the sum total of the year-end values of
FINANCIAL TOOLS NARFE offers an online retirement calculator and other financial planning tools. Find out more at www.narfe.org/ federalbenefits.
all IRAs plus any distributions and conversions. However, the instructions for form 8606 also tell you to “not include a rollover from a traditional, SEP or SIMPLE IRA to a qualified retirement plan” in the value of the distributions. So, in this example, Janet will simply divide her $5,000 basis by the $5,000 conversion, resulting in a 100 percent tax-free conversion. It is up to the IRA owner to keep records of the
basis on form 8606, but all is not lost if you haven’t done so. Although IRA custodians don’t keep track of whether your contributions are deductible or nondeductible, you can contact them for the value of your contributions each year. You will then need to review each year’s tax return to determine if you deducted the contribution or not. Nondeductible contributions were first permitted in 1987, but if you haven’t kept your tax returns since then, you can get transcripts of prior returns at www.irs.gov/ Individuals/Get-Transcript. Should you need to report missed nondeductible contributions, contact your tax preparer for advice on how to correct form 8606. 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. Email: mkeen@keenpocock.com.
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All appointments must be scheduled through TruHearing. vendors, which may be different from items covered under your 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. To find out what is covered under your policy, contact the 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. In addition, these items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, BCBSA, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time. Blue Cross Blue Shield Association is an association of independent, locally operated Blue Cross and Blue Shield Companies.
The Informed Citizen
Potential of state Legislative advocacy
S
40
By Christopher Farrell, senior analyst
tate legislatures are in session in a majority of states. Before, during and after these sessions, NARFE officers, leaders and activists lobby state lawmakers on behalf of current and future federal retirees – and seniors generally.
the legislature (44) or as governor (11) or both. By meeting with state legislators, our organization plants its brand among those ambitious for higher office.
During 2014, NARFE’s Indiana Federation made major progress toward equitable tax treatment for Civil Service Retirement System retirement income vis-a-vis Social Security benefits. The 2015 goal is approval by both chambers and the governor. The Virginia Federation has a multi-issue agenda impacting all seniors and, in fact, all Virginians. While our state legislative advocates select their own priorities, all support NARFE-shared goals: recruitment of eligible nonmembers by protecting and enhancing benefits, coalition building with allied organizations in pursuit of shared goals, and branding NARFE with future members of Congress because half the Congress served as state lawmakers or governors.
fairer treatment will be in state government. It often takes years, but the groundwork has been laid in several places. Success came only after many years of work in Missouri and Oklahoma.
Chapter and Federation Logistics Thirty-five of 54 NARFE federations named a state legislative advocate. In several places, the same person is stretched to perform both national and state legislation duties. According to the NARFE database, 420 chapters have a “Legislative Chair (State).” Many of these wear multiple hats. Thus, the large majority of chapters have either no one or a multitasker seeking to coordinate with their federation and, now, national in advocating for better treatment by the state legislature. However, a growing number of states are resolved to commit greater resources to state legislative advocacy.
Recruitment Delivering dollars and cents benefits to federal retirees is a powerful recruitment argument. In the past, NARFE has made major strides in the national legislature. More recently, defending benefits successfully is the name of the game. As states continue to recover from the Great Recession, our best avenue of
Branding The single most common career path to Congress is service in the state legislature. The National Conference of State Legislatures tracks this path carefully. Of the 435 representatives sworn in on January 6 to serve in the 114th Congress, 218 previously served in their state legislature. A majority of senators served either in
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Coalitions One common feature of success wherever NARFE has been involved is enlisting coalition partners. Just like the coalitions listed on the NARFE website, recruiting an ever-widening coalition is important to success in state and local advocacy. Coalition partnerships often prove the whole is greater than the sum of the parts. An additional benefit of coalition building is to show potential adversaries that federal retirees in general and NARFE members in particular are not like the media portrayal.
State and National Advocacy State legislative advocacy must complement national advocacy, not substitute for it. Meeting face-to-face with legislators, inviting them and their staff to speak on NARFE issues at chapter meetings and federation conventions, and recruiting emerging leaders to attend the NARFE Legislative Training Conference in March are vital to our work as advocates.
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2014
For the Record
Thrift Savings Plan Monthly Returns G FUND
F FUND
C FUND
S FUND
I FUND
JANUARY
0.21%
1.58%
(3.45%)
(1.91%)
(4.03%)
FEBRUARY
0.18%
0.62%
4.58%
5.43%
5.58%
March
0.19%
(0.15%)
0.85%
(0.69%)
(0.57%)
APRIL
0.20%
0.90%
0.75%
(2.47%)
1.51%
MAY
0.20%
1.21%
2.35%
1.52%
1.72%
June
0.19%
0.14%
2.07%
4.45%
0.99%
JULY
0.19%
(0.19%)
(1.37%)
(4.38%)
(1.95%)
AUGUST
0.20%
1.12%
4.01%
4.98%
(0.14%)
SEPTEMBER
0.18%
(0.58%)
(1.40%)
(5.10%)
(3.82%)
OCTOBER
0.20%
0.96%
2.45%
4.11%
(0.63%)
NOVEMBER
0.17%
0.74%
2.70%
1.33%
0.51%
DECEMBER
0.18%
0.21%
(0.24%)
0.99%
(4.13%)
YTD
2.31%
6.73%
13.78%
7.80%
(5.27%)
LAST 12 MO
2.31%
6.73%
13.78%
7.80%
(5.27%)
10 yr
3.39%
4.65%
7.44%
10.43%
7.08%
L INCOME
L 2020
L 2030
L 2040
L 2050
JANUARY
(0.42%)
(1.57%)
(2.04%)
(2.35%)
(2.71%)
FEBRUARY
1.15%
2.73%
3.44%
3.94%
4.44%
MARCH
0.19%
0.17%
0.14%
0.12%
0.09%
APRIL
0.31%
0.39%
0.37%
0.32%
0.32%
MAY
0.64%
1.20%
1.46%
1.63%
1.78%
JUNE
0.58%
1.19%
1.52%
1.77%
1.96%
JULY
(0.26%)
(0.97%)
(1.34%)
(1.63%)
(1.86%)
0.84%
1.64%
2.07%
2.40%
2.61%
(0.42%)
(1.36%)
(1.84%)
(2.18%)
(2.50%)
OCTOBER
0.61%
1.09%
1.36%
1.58%
1.70%
NOVEMBER
0.55%
1.04%
1.27%
1.42%
1.55%
DECEMBER
(0.04%)
(0.50%)
(0.67%)
(0.76%)
(0.94%)
YTD
3.77%
5.06%
5.74%
6.22%
6.37%
LAST 12 MO
3.77%
5.06%
5.74%
6.22%
6.37%
AUGUST SEPTEMBER
THIS CHART is provided as a service to NARFE members who enrolled in the Thrift Savings Plan while employed by the federal government. Retirees are not eligible for enrollment. These returns are net of the effect of accrued administrative expenses and investment expenses/costs. Percentages in () are negative. Source: TSP
Declining energy prices prompt mixed market close
Global markets closed mixed in December as declining energy prices created conflicting signals as to the direction of the global economy. Large stocks (C Fund) continued to hit record highs (15th and 16th times in 2014), but backed off by month’s end. Small stocks (S Fund) closed higher despite the negative performance of large stocks. International equities (I Fund) fell due to concerns with overseas economic growth and a strong U.S. dollar. The fixed income markets (F Fund) closed higher supported by lower energy prices and slower global growth. —BY Benjamin Gong, Financial analyst, Thrift Savings Plan
Countdown to cola
T
he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.72 percent in November 2014. To calculate the 2016 cost-of-living adjustment (COLA), the indices of July, August and September 2015 will be averaged and compared with the 2014 third-quarter average of 234.242. The percentage increase, if any, determines the COLA. November’s index, 231.551, is down 1.15 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. November’s index is 1.04 percent higher than the December 2013 base index of 229.174. 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
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Monthly % Change
% Change from 234.242
October 2014
233.229
-0.40
-0.43
November
231.551
-0.72
-1.15
December January 2015 February March April
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: 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.)
CPI-W
May June July August September
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: MasterCard VISA NARFE members contributed for If you have any questions, write to: Discover AMEX Alzheimer’s research: $12 Million Fund National Committee Chair Card Number: Merv Stuckey, 2272 E. Buster Mountain Dr. Expiration Date: (mm)/ (yy) Oro Valley, AZ 85755-4709 *Total as of November 30, 2014 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) Email: narferoadrunner@comcast.net
$11,083,096* 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.
/
Enclosed is my Silver Circle contribution: $ ID # (ID # may be found on your narfe magazine label or your NARFE membership card)
Name: Address: City: Silver Circle contributions are NOT deductible for federal income tax purposes.
Installment Plan Wall of Fame 12-month installment plan
Give to the Scholarship and Disaster Funds
Please mail coupon and check to: FEEA 3333 S. Wadsworth Blvd., Suite 300 Lakewood, CO 80227
/
All donations go to the NARFE General Fund to support NARFE programs and operations.
State:
ZIP:
My check is enclosed
(Please make check payable to NARFE Silver Circle.)
Please charge my credit card Card type MasterCard VISA Discover AMEX Card Number: Expiration Date: (mm)/ (yy) Name: (please print)
Signature
Make check payable to: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund.
Date
YES!
Date
/
/
I would like to help with my contribution.
Please check appropriate box(es). To make credit card contributions, call 800-338-0755. 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
Amount: $
NARFE-FEEA Scholarship Fund
Amount: $
Name: Address: City:
State:
ZIP:
NARFE News
cash for college
applaud our helping hands
T
hey are not in it for the glory. But NARFE believes its outstanding chapter service officers should be applauded for the role they play in support of NARFE members and the Association. Every year, NARFE recognizes these volunteers through its Service Officer Award Program. The 2015 call for nominations has been issued, and nominations are coming in. Deadline is January 30. “The award program is about recognizing all of NARFE’s chapter service officers and rewarding those individuals who have demonstrated exceptional dedication and assistance to fellow members, chapters and the larger organization,” says David Snell, director of federal benefits service. The chapter service officer’s primary duty is to help members who have questions about federal ben-
efits. Officers are a nearby resource for federal employees, retirees or survivors who may need guidance on a benefits issue. If they are unable to resolve the issue on their own, local service officers contact NARFE’s federal benefits specialists at Headquarters for assistance. In the award program, nominations by chapter presidents are sent to NARFE federation presidents, who select one to be federation service officer of the year. The winning nomination is sent to the appropriate NARFE regional vice president, who selects one to be regional service officer of the year. All federation winners are also forwarded to NARFE Headquarters, where a selection committee determines the National Service Officer of the Year. To learn more about the service officer program or awards, contact Snell at dsnell@narfe.org.
Silver circle Donors Update
have their names engraved on the Wall of Fame at NARFE Headquarters. Donors from August 16-December 15, 2014 are listed here with their chapter numbers: Alabama: William L. Howard, 0443; Lewis C. Preston, 1957. California: Brian Q. Robbins, 0003; Irving M. Kelley, 0004; Guy R. Francesconi, 0004; Melanie Mccrossin, 0016. Colorado: Allen E. Buetzer, 0821. eNARFE: Joseph Sykes, 2363; Kenia Fraiz, 2363. Iowa: Daniel J. Voss, 0133.
As of December 15, 2014, NARFE’s Silver Circle donation program stands at $134,382. The program gives members a vehicle to donate to the Association beyond the norm. Donors of $25 or more are listed in narfe magazine and receive a Silver Circle pin. Donors of $1,000 or more
44
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The 2015 NARFE Scholarship Program will run February 1 through April 24. The competition is open to children, grandchildren and great-grandchildren of NARFE members. Applicants must be high school seniors planning to attend an accredited college full-time in a degree program in the fall/winter of 2015. Sixty $1,000 scholarships will be awarded to winners of this year’s competition. Winners will be notified in August. A copy of the application appears on page 45 of this issue of narfe magazine. It also can be obtained from the NARFE website, www.narfe.org, as of February 1 by clicking on the Scholarship Program graphic in the rotating display on the Home Page. “A Guide to NARFE’s Annual Scholarship Awards Program” also is available online or by emailing scholarship@ narfe.org. To make a tax-deductible contribution to the Scholarship Program, use the donation coupon on p. 43 of this issue.
To view or submit chapter photos, go to NARFE’s online Out and About photo gallery at www.narfe.org/narfemagazine.
Kentucky: Shirley L. Phillips, 1135. Massachusetts: James K. Spriggs, 0034. Michigan: Peter Charles Schellang, 0089. Nebraska: Harold J. Farrall, 0362. New Jersey: Nancy D. Hackett, 1066. New York: Robert L. Acerno, 0023. North Carolina: Elizabeth W. Hargett, 0337. South Carolina: Howard L. McFann, 0960. South Dakota: Thomas R. Templeton, 1635. Virginia: Edwin W. Wade, 0164. Wisconsin: Jerry G. Hildeman, 0437.
NARFE 2015 SCHOLARSHIP APPLICATION
Applicants: • Must be high school seniors planning to attend an accredited college full-time in a degree program in the fall/winter of 2015. • Must have a grade point average of at least 3.0 on an unweighted 4.0 scale. • Must be sponsored by a parent, grandparent or great-grandparent who is a current NARFE member. (Step-parents, step-grandparents, etc., can also sponsor.) Sponsor must be living at the time application is submitted. • Must provide your email address on the application. Your application receipt will be sent to this email address; please add “confirmation@feea.org” to your address book. • Must provide the following materials in your packet: r Official 2015 NARFE scholarship application. Photocopies are acceptable. r Full transcript, including fall/winter 2014 grades. Report cards and photocopies are acceptable. If mailed separately by the school, must arrive by program deadline. r Copies of American College Testing (ACT) or Scholastic Aptitude Testing (SAT), or other entrance examination scores. (Homeschooled students must provide equivalent of transcript and test scores as applicable.) r List and brief description of any awards or volunteer/ community service activities (not to exceed two pages). r Written recommendation from a teacher or counselor, on school or other official letterhead. r One stamped, self-addressed #10 envelope (used to notify you in the event you do not win). r Essay
ESSAY TOPIC INFORMATION The essay must be typed, double-spaced, not more than two pages on the following topic: Young people are often mentioned as a disaffected portion of the electorate because many do not vote. Why do you think so many choose not to vote? What specific actions would you recommend to bring young people into the electoral process? All of the materials (except transcript, if necessary) must be mailed in the same 9”x12” (or larger) envelope, postmarked no later than April 24, 2015, to: NARFE Scholarship Awards, c/o FEEA, 3333 S. Wadsworth Blvd., Suite 300, Lakewood, CO 80227. DO NOT FOLD MATERIALS. DO NOT USE STAPLES OR PAPER CLIPS. Please note: All materials submitted with the application will become the property of FEEA and will not be returned under any circumstances. If needed, make a copy of the information for yourself before mailing. The NARFE Scholarship Program is administered by the Federal Employee Education & Assistance Fund (FEEA) and is made possible by your tax-deductible contributions to the NARFE-FEEA Scholarship Fund, 3333 S. Wadsworth Blvd., Suite 300, Lakewood, CO 80227. New!
For more information, obtain a copy of the newly updated Guide to NARFE’S Annual Scholarship Awards Program (F-105). To get your copy, send an email to scholarship@narfe.org; download it from the NARFE website, www.narfe.org; or call Headquarters and request scholarship information.
Acknowledgement receipts are emailed to eligible applicants who submit a complete application by the deadline. Emailing of receipts may take 8-12 weeks after the deadline, due to the volume of applications received. Applicants desiring earlier confirmation of delivery should use a mailing service that provides delivery confirmation. Please add confirmation@feea.org to your address book to ensure receipt of your confirmation email. Please complete the following. Incomplete applications and applications sent to NARFE Headquarters will not be considered. Student’s Name:______________________________________
I am taking college courses in high school: o Yes
Complete Home Address:
NARFE Member’s Name: ______________________________
____________________________________________________ ____________________________________________________
Relationship to Applicant: o Father o Mother o Grandfather o Grandmother
Home Telephone: _____________________________________
NARFE Member No.: __________________________________
Email Address: _______________________________________
Chapter No.: ________________________________________
Applicant’s Grade Point Average (GPA): __________________ (Applicants must have a cumulative GPA of at least 3.0 on an unweighted 4.0 scale)
Member’s Complete Home Address:
College or University (planning to attend): ________________ ____________________________________________________ (Must be a college freshman by fall/winter 2015)
o No
____________________________________________________ ____________________________________________________ Member’s Telephone: _________________________________ Member’s Email Address: ______________________________
Active and Retired Federal Employees ...
JOIN NARFE TODAY!
National Active and Retired Federal Employees Association 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 benefit questions.
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Three Easy Ways To Join 1. 2. 3.
N A R F E M E M B E R S H I P A P P L I C AT I O N n YES. I want to join NARFE. n Mr. n Mrs. n Miss n Ms. Full Name ________________________________________ Street Address ____________________________________ Apt./Unit ________________________________________
I am a (check all that apply) n n n n n
Active Federal Employee Active Federal Employee Spouse Annuitant Annuitant Spouse Survivor Annuitant
n Please enroll my spouse
City _______________________ State _____ zIp ________
Spouse’s Full Name ________________________________
phone (__________) _______________________________
Spouse’s Email ____________________________________
Email____________________________________________
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.
Choose Your Membership Type o Local Chapter Close-to-Home Membership – $40* Affiliation with the NARFE chapter closest to your home. Receive narfe magazine each month; attend meetings, often with invited speakers; network; and get involved in grass-roots lobbying efforts. Chapter Affiliation: Chapter # __ __ __ __(if known, otherwise enroll me in the chapter closest to my zIp code). *First-year dues. Subsequent years, $40 plus local chapter dues.
OR
o eNARFE Chapter Online Membership – $40 NARFE’s electronic chapter. Receive narfe magazine by mail each month, and all other communications by email and on eNARFE.org. Get important updates and legislative action alerts, and have access to the eNARFE blog. Including email address strongly recommended.
Total Dues $40 First-Year Dues X __________ = __________ per person # Enrolling Total Dues
PAYMENT OPTIONS n Check, Money Order or Bill pay (payable to NARFE) n Bill me (NARFE membership will start when payment is received.) n Charge my: n MasterCard n VISA n Discover n American Express Card No. _____________________________________ Expiration Date _________ /_________ mm
yyyy
Name on Card _________________________________ Signature _____________________________________ Date _________________________________________ 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 _________________________
MAIL THIS APPLICATION TO NARFE Member Records / 606 N. Washington St. / Alexandria, VA 22314-1914
“My friends all hate their W E N No cell phones… I love mine!” t Contrac Here’s why.
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IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. All rate plans and services require the purchase of a Jitterbug phone and a one-time set up fee of $35. Coverage and service is not available everywhere. Other charges and restrictions may apply. Screen images simulated. There are no additional fees to call Jitterbug’s 24-hour U.S. Based Customer Service. However, for calls to an Operator in which a service is completed, minutes will be deducted from your monthly balance equal to the length of the call and any call connected by the Operator, plus an additional 5 minutes. Monthly minutes carry over and are available for 60 days. If you exceed the minute balance on your account, you will be billed at 35¢ for each minute used over the balance. Monthly rate plans do not include government taxes or assessment surcharges. Prices and fees subject to change. 1We will refund the full price of the GreatCall phone and the activation fee (or set-up 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. Jitterbug and GreatCall are registered trademarks of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics Co., Ltd. ©2015 Samsung Telecommunications America, LLC. ©2015 GreatCall, Inc. ©2015 firstSTREET for Boomers and Beyond, Inc.
In tro Sh du oc ct kin or g yP ric e! ea ch
$1
8 95
Actual size is 40.6 mm
Advance Release:
Order Your New U.S. 2015 Silver Dollars Now!
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illions of people collect the American Eagle Silver Dollar. In fact it’s been the country’s most popular Silver Dollar for over two decades. Try as they might, that makes it a very hard “secret” to keep quiet. And right now, many of those same people are lining up to secure the brand new 2015 U.S. Eagle Silver Dollars — placing their advance orders now to ensure that they get America’s newest Silver Dollar just as soon as the coins are released by the U.S. Mint in January. Today, you can graduate to the front of that line by reserving your very own 2015 American Eagle Silver Dollars — in stunning Brilliant Uncirculated condition — before millions of others beat you to it.
America’s Brand New Silver Dollar
This is a strictly limited advance release of one of the most beautiful silver coins in the world. Today you have the opportunity to secure these massive, hefty one full Troy ounce U.S. Silver Dollars in Brilliant Uncirculated condition. The nearly 100year-old design features a walking Lady
Liberty draped in a U.S. flag on one side and a majestic U.S. Eagle and shield on the other.
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By calling today, you can reserve some of the very first brand new Brilliant Uncirculated 2015 American Eagle Silver Dollars ever released. Your reservation and price will be
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You must be 100% satisfied with your 2015 American Eagle Silver Dollars or return them within 30 days of receipt for a prompt refund (less s/h). Don’t miss out on this exclusive advance release. Call immediately to secure these American Eagle Silver Dollars ahead of the crowd. 2015 American Eagle Silver Dollar BU........ $19.95 ea. Introductory Price $18.95 ea. (LIMIT 10)
Additional 2015 Silver Eagle BU Dollars may be purchased for $19.95 each. Limited to 50 total coins per household. For fastest service, call today toll-free
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Please mention this code when you call.
GovMint.com • 14101 Southcross Dr. W. Dept. PEG169-03 • Burnsville, Minnesota 55337 Prices and availability subject to change without notice. Past performance is not a predictor of future performance. NOTE: GovMint.com® is a private distributor of worldwide government coin and currency issues and privately issued licensed collectibles and is not affiliated with the United States government. Facts and figures deemed accurate as of November 2014 ©2015 GovMint.com.
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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. 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: (National dues ÷ 12) + (Chapter dues ÷ 12) = Total Monthly Deduction
Advantages • Save 15% off your annual membership 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! Application process 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 800-627-3394. Retirees, spouses of retirees and annuitant survivors are eligible for dues withholding.
NARFE Dues Withholding Application for Retirees n YES. I want to enroll in NARFE’s Dues Withholding Program (Annual dues of $34 plus Chapter dues of record to be withheld annually.) Social Security Number (9-digit number)
–
Civil Service Annuity Number
–
C S
–
–
–
(Include prefix, CSA or CSF) (Include any applicable suffix)
n Mr. n Mrs. n Miss n Ms. Full Name _______________________________________
NARFE MEMBERSHIP INFORMATION
Street Address ___________________________________
NARFE Membership ID ____________________________________
Apt./Unit________________________________________
NARFE Chapter Number____________________________________
City _________________________ State _____ ZIP _____
n YES. I Also Authorize My (NARFE Member) Spouse’s Dues To Be
Phone (__________) ______________________________ Email ___________________________________________ Date of Birth _________ /_________ / ____________________ dd
mm
yyyy
Withheld From My Annuity. (Additional annual dues of $34 plus Chapter dues of record 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 make below, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I make below: 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 800-627-3394 rr@narfe.org Do not send money with this form
DW-2 (08/12)
Member Perks
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.
Credit Union
NARFE Premier Federal Credit Union 800-328-1500 www.NARFEpremierfcu.org As a member of NARFE, you have the privilege of joining NARFE Premier Federal Credit Union, which has been serving members since 1935. We offer extensive services at competitive rates to members nationwide. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. For more information, call the number above, email jparish@narfepremierfcu.org or visit the website.
insurance
NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed and administered by Mercer Health & Benefits Insurance Services, LLC, exclusively for NARFE members: Senior Whole Life, Term Life, Medicare Supplements, Hospital Income Plan, Short Term Recovery Insurance, Pet Insurance, Accidental Death & Dismemberment, Cancer Care, Enhanced Dental Insurance and Long Term Care. Go to the website for more information on these programs.
GEICO 800-368-2734 NARFE members with good driving records may be eligible for quality au-
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tomobile insurance from GEICO. Ask about the NARFE discount available to members in many states. Call today for your free, no-obligation rate quote. Be sure to mention that you’re a NARFE member! • Discount amount varies in some states • Discount not available in all states or in all GEICO companies • One group discount applicable per policy.
Federal Long Term Care Insurance Program 800-LTC FEDS www.LTCFEDS.com Make long-term care insurance part of your retirement plan. With benefits designed specifically for the federal family, the Federal Long Term Care Insurance Program offers a smart way to help protect savings and assets, and remain independent should you need long-term care services someday. Start planning for the future. Visit www.LTCFEDS.com today.
Vacation rentals
Government Employees Travel Opportunities® 877-867-3639 www.getravelop.com/narfe Offers government employees, retirees and their families 7-night stays for only $349 on accommodations at popular destinations worldwide.
Book online and save on your next vacation stay.
hotels
Choice Hotels International 800-258-2847 www.choicehotels.com With 6,000 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. Join the Choice Privileges® rewards program and earn points with every qualifying stay toward free nights, Airline Rewards, gift cards and more. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer. Advance reservations required.
Wyndham Hotel Group 877-670-7088 As a member of NARFE, you will 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. Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now. Call our special member-benefits hotline 877-670-7088 and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites® By
Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®.
car rentals
National You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation call National Car Rental at 1-800-CARRENT® and reference Contract ID 5282909.
Alamo
mention you are a NARFE member and ask for Todd.
Wheaton World Wide Moving 800-248-7960 www.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 Angela and mention you are a NARFE member to start the moving process.
Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call 1-800-462-5266 and reference Contract ID 262544.
The employees/owners of Avis offer guaranteed low rates and quality services to members of NARFE. Call 800-331-1441 and mention ID# A991900.
Moving services
Bekins Van Lines 800-248-4810 www.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. In addition, Bekins Van Lines can assist with instate shipments, local moves and international moves with competitive pricing and quality service. Please
1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease. You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share these test results with your doctor. All four screenings cost just $135. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website. Coverage may vary and may not be available in all states.
narfe merchandise emergency services
Avis
Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct the following screenings using state-of-the-art ultrasound technology in your neighborhood.
MASA 800-423-3226 Medical Air Services Association has been the industry leader in prepaid emergency assistance services for more than 30 years. NARFE members have experienced MASA’s “peace of mind” services since 2001. Now NARFE members are entitled to even more: air ambulance transportation, helicopter transportation, ground ambulance, vehicle return, mortal remains transport, and much more! Call MASA Today. It Could Save Your Life!
health screening
Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE
NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.com As the official provider of NARFE merchandise, the NARFE General Store offers NARFE-approved name badges, business cards, customizable logo products and plaques. Check out our online catalog.
NOT A MEMBER? GO ONLINE: It’s easy to join online at www.narfe.org. Click “Join NARFE.” TURN TO PAGE 46: Fill out the Membership Application and mail it to NARFE to receive all the perks of being a NARFE member. Call (Toll-Free) 800-627-3394.
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The Way We Worked
This October 7, 1937, photograph shows employees of the U.S. Section of the International Boundary and Water Commission (USIBWC) pouring concrete on the first section of the apron for the American Dam in El Paso, TX. The dam was constructed under a 1906 treaty to divert an allotment of the Rio Grande River’s water to U.S. irrigators and release the Mexico allotment downstream. The USIBWC has replaced the dam’s gates and currently is working on the secondary apron on the downriver side. Photo courtesy of Mark L. Howe, Cultural Resources Specialist, U.S. International Boundary and Water Commission, 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. Website: http://shfg.org/shfg/.
good dams make good neighbors
nd consul
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Did you know? The U.S. Section of the International Boundary and Water Commission (USIBWC) is the U.S. component of the International Boundary and Water Commission, which applies the boundary and water treaties of the United States and Mexico. According to the USIBWC website, it provides binational solutions to issues that arise regarding such things as sanitation, water quality and flood control in the border region.
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Card # _______________________________________ Exp.: ______/_____ Mr. Mrs. Ms. ___________________________________________________ Address ___________________________________________ Apt. # _____ City & State ______________________________________ Zip __________ Phone/Email____________________________________________________ I enclose $________ purchase price, and only $5.99 shipping & handling for my entire order. Please add applicable state & local sales tax for the following states: AZ, GA, WI, & WV.
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