March 2013 NARFE Magazine by NARFE

MAR

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P.30

Why NARFE Opposes chained CPI as COLA Index

P.25

NARFE-PAC Kicks Off Campaign

COVER STORY

Long-Term Care The Federal Program’s First 10 years

P.18

Volume 89 • Number 03

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LONG-TERM CARE. After a decade of service, the Federal Long Term Care Insurance Program, offered to federal employees, retirees and their families, has tallied both achievements and challenges.

Diet COLA in Benefits Market Basket? A proposal to change a consumer price index calculation would lower cost-of-living adjustments.

MAR

On the Web P.25

naRFE-paC KiCKS OFF Campaign

COVER STORY

www.narfe.org

Members of Key Committees

Pay Freeze Extension Bill Introduced Again in House

Postal Reform Process Begins Again

Congressional Retirement Now on Par With Other Feds

FECA Beneficiaries to Receive 1.7 Percent COLA in March

From the President

Managing Money

The Informed Citizen

Alzheimer’s Update

Questions & Answers

For the Record: TSP Investments, COLA Chart

NARFE News

The Way We Worked

WhY naRFE OppOSES ChainEd Cpi aS COLa indEx

@narfehq

visit us online at:

P.30

NARFE National Headquarters

Pay, Benefits Assaults Expected as Budget Drama Continues

DEPARTMENTS

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like us on facebook:

Columns

Cover Story

WashingTon Watch

LOng-TERm CaRE The Federal Program’s

Volume 89 • Number 03

First 10 years

P.18

SPECIAL SECTION

NARFE-PAC: Defending Your Benefits

ON THE C OVER

Illustration by Bill Pragluski, Critical Stages, LLC

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march 2013 | Volume 89 | Number 03

Editor Margaret M. Carter Assistant Editor Donna J. St. John Editorial Administrator Toni Vallario Graphic Design Charlene Gridley, Daniel Renero Editorial Board Joseph A. Beaudoin, Paul H. Carew, Elaine C. Hughes, Richard G. Thissen 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 725, 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 Tape: Issues of narfe magazine are also available on cassette through the National Library Service for the Blind and Physically Handicapped. To find out about availability in your area, call 800-4248567 and ask for the Reference Section. The Association, since July 1970, has been classified by the IRS as a tax exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

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

REGIONAL VICE PRESIDENTS

REGION I Arthur Pike (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 207-764-4468 Email: artpike1937@aol.com REGION II Evelyn Kirby (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-604-1141 Email: ekirby@atlanticbb.net REGION III Donald Stewart (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) Tel: 305-442-6388 Email: dejs33149@aol.com REGION IV Paul E. Johnson (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 812-306-5137 Email: pejohnson@tds.net REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 620-241-1131 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 or update your membership record Call (toll-free): 800-456-8410 Email: memberrecords@narfe.org

REGION VI Jerome S. Smith (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-534-5849 Email: retiredjer@aol.com REGION VII Frank Impinna (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 303-482-1747 Email: impinna@gmail.com 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 F. Martin (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 540-872-3345 Email: narfe2065@hughes.net

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 © 2013, 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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How to Outsmart a Millionaire Only the “Robin Hood of Watchmakers” can steal the spotlight from a luxury legend for under $200!

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“Nice watch,” I said, pointing to his and holding up mine. He nodded like we belonged to the same club. We did, but he literally paid 100 times more for his membership. Bigshot bragged about his five-figure purchase, a luxury heavyweight from the titan of high-priced timepieces. I told him that mine was the Stauer Corso, a 27-jewel automatic classic now available for only $179. And just like that, the man was at a loss for words. Think of Stauer as the “Robin Hood of Watchmakers.” We believe everyone deserves a watch of uncompromising precision, impressive performance and the most elegant styling. You deserve a watch that can hold its own against the luxury classics for a fraction of the price. You’ll feel the quality as soon as you put it on your wrist. This is an expertlycrafted time machine... not a cry for attention. Wear a mechanical masterpiece for only $179! We surveyed our customers. As intelligent, high net worth individuals, they have outgrown the need to show off. They have nothing to prove; they already proved it. They want superb quality and astonishing value. And that’s exactly what we deliver. The Stauer Corso is proof that the worth of a watch doesn’t depend on the size of its price tag. Our factory spent over $40 million on Swiss-made machinery to insure the highest quality parts. Each timepiece takes six months and over 200 individual precision parts to create the complex assembly. Peer through the exhibition back to see the 27-jeweled automatic movement in action and you’ll understand why we can only offer the Corso in a limited edition of 14,999.

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From the President

A gathering of giants

any NARFE members loom large in my estimation. Our grass-roots activists in communities around

the country are among them. More than 300 of them will be gathering this month in Arlington, VA, to attend the biennial NARFE Legislative Training Conference. As in the past, we expect that the conference will attract many first-timers, eager to learn how to best represent NARFE before their congressional delegations. We also know that other attendees will be veterans of years of congressional contacts. When the entire group boards buses to go to Capitol Hill, these long-time NARFE activists are the ones who will be greeted by members of the House and Senate like old friends. The legislators will call them by their first names and ask them what’s new “back home.” There can be

no better way to help NARFE’s cause in Congress than to be the face of federal employees and retirees in the minds of lawmakers. The derogatory phrase “faceless bureaucrats” rings hollow for legislators who have personal relationships with members of NARFE. We thank these members for their enthusiasm and efforts. Of course, not every member can be in Washington in March to lobby for NARFE, but every member can contribute to our endeavors by donating to NARFE-PAC, the Association’s political action committee. March is “NARFE-PAC Month.” This month’s issue includes a Special Report on NARFE-PAC and a contribution envelope, bound into the center of the magazine. We encourage members to give what they can to help protect our hard-earned benefits. Our cover story this month examines another means of protection – long-term care insurance. The Federal Long Term Care Insurance Program, which NARFE helped create more than 10 years ago, has become the largest and one of the best programs of its kind in the country. Our second feature story delves into congressional attempts to change the way cost-of-living adjustments are calculated, what a change would mean for retirement benefits – and why NARFE opposes a shift to the Chained CPI.

Joseph A. Beaudoin NARFE national President natpres@narfe.org

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Washington Watch

Pay, Benefits assaults Expected as budget drama continues

he failure of the White House and Congress to reach a big budget deal and the postponement of across-the-board budget cuts known as sequestration set the stage for not

one fiscal cliff encore but more likely three more fiscal cliffs.

The first to hit probably will be the need to raise the public debt limit. According to then-Treasury Secretary Timothy F. Geithner, the cap on borrowing was reached some time around New Year’s Day. Following that event, the Treasury has access to certain extraordinary means to manage money in order to keep agencies open – including “borrowing” from the balances in the Civil Service Retirement and Disability Fund (with legal requirements that the fund be made whole once the period of the debt-limit crisis is over). At press time, those extraordinary measures were expected to run out in mid-February. As a temporary measure, the House passed a bill (H.R. 25) on January 23 to suspend the debt ceiling until May 19. The bill also contains a provision prohibiting lawmakers from getting paid unless Congress passes a fiscal year 2014 budget 6

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by April 15. Their salaries would be held in escrow until the budget is approved. If they fail to do so, congressional salaries would not begin again until January 2015, the end of the 113th Congress. At press time, the Senate was expected to pass the bill; the White House had indicated support. The second key date will be the March 1 deadline for sequestration. Absent another and potentially more significant agreement, the sequestration ax once again will be ready to fall on both the military budget and domestic discretionary programs. And third, the current Continuing Resolution (CR) providing stopgap funding to keep federal government agencies, programs, projects and activities running, expires on March 27. Without an agreement to extend the CR or passage of full-year appropriations measures through the end

of fiscal year 2013 (September 30, 2013), we run the risk of a government shutdown. NARFE members must remain vigilant during this time. As Congress debates how to cut federal spending, it will continue to include reductions in the benefits of federal employees and retirees in cost-saving measures. This could mean proposals to: • Extend the pay freeze for federal employees; • Increase retirement contributions by federal employees; and • Switch to the Chained CPI to calculate annual cost-of-living adjustments in federal benefit programs, including Social Security benefits and civil service retirement annuities. NARFE has made it clear that our members will not roll over for the Chained CPI, and this is a battle that the Association will continue to fight. (See related story, p. 30.) It is critical that NARFE members continue to contact their members of Congress to let them know the impact of these dangerous proposals. –By Alan Lopatin, NARFE Legislative Counsel

members of Key Committees With a new Congress comes new committee assignments. In the Senate, federal employee and retiree issues are usually considered by the Homeland Security and Governmental Affairs Committee. In the House, the Oversight and Government Reform Committee tackles these issues. Changes are likely for the Senate Homeland Security and Governmental Affairs Committee during the 113th Congress, especially because both the chairman and the ranking member are changing. (The chairman of a congressional committee comes from the political

Democrats – Carl Levin, MI; Mark Pryor, AR; Mary L. Landrieu, LA; Claire McCaskill, MO; Jon Tester, MT; Mark Begich, AK; Tammy Baldwin, WI; and Heidi Heitkamp, ND. Republicans – John McCain, AZ; Ron Johnson, WI; Rob Portman, OH; Rand Paul, KY; Michael B. Enzi, WY; and Kelly Ayotte, NH. As of press time, subcommittees had not been announced. On the other side of the Capitol, Rep. Darrell Issa, R-CA, remains chairman, and Rep. Elijah Cummings, D-MD, remains ranking member of the House Oversight and Government Re-

New leaders are named for Senate and House panels with jurisdiction over federal employee and retiree issues. party that holds the majority in that chamber of Congress; the ranking member belongs to the minority party.) During the 112th Congress (2011-2012), the Senate Homeland Security and Governmental Affairs Committee was led by Sen. Joseph I. Lieberman, I-CT, and Sen. Susan Collins, R-ME. However, Lieberman retired at the end of the last Congress, and Collins has been assigned to other committees. The new committee chair is Sen. Thomas R. Carper, D-DE, and the new ranking member is Sen. Tom Coburn, R-OK. The other members of the Committee are:

form Committee. The biggest change is in the leadership of the Subcommittee on the Federal Workforce, U.S. Postal Service and the Census. Rep. Blake Farenthold, R-TX, succeeds Rep. Dennis A. Ross, R-FL, as subcommittee chair. Rep. Stephen F. Lynch, D-MA, continues as ranking member. Other members of the subcommittee are: Democrats – Eleanor Holmes Norton, DC; and William Lacy Clay, MO. Republicans – Tim Walberg, MI; Trey Gowdy, SC; Doug Collins, GA; and Ron DeSantis, FL.

Protect America’s Heartbeat Update The 2013 “Protect America’s Heartbeat”

(PAH) campaign is under way! NARFE has re-energized its grass-roots movement to make an impact on Capitol Hill. Field organizers are in place in key states where members of Congress will play a crucial role in efforts to prevent the across-theboard budget cuts known as sequestration and fund the government past March 27. Organizers will be working to mobilize NARFE members in Nevada, Montana and Illinois. In addition, NARFE legislative staff will be working with NARFE members in Washington, Virginia, Maryland, Delaware and West Virginia to make an impact there. No matter where you live, the PAH campaign is committed to fighting for the 2.7 million active federal employees who protect America’s heartbeat and the 2.5 million retired federal employees who preceded them.

–By Sarah holstine, Grass-roots program manager w w w. n a r f e . o r g

Washington Watch

advocacy action Phone and email your members of Congress to fight back! With important budget deadlines ahead this month,

and no congressional recess on the calendar, NARFE members should use the phone and email to contact Congress. NARFE’s online Legislative Action Center has a message that you can send to your legislators – or you can write your own. Remember to tell your story of service. The Legislative Action Center is available at www. narfe.org/legislation. Proposals will change quickly, and responses from NARFE members will be necessary to fight back. To add your email address to your NARFE record, go to www.narfe.org or call (toll-free) 800-456-8410. As part of the Legislative Training Conference, NARFE members will spend Tuesday, March 12, on Capitol Hill. To emphasize NARFE’s message, we encourage members to call their members of Congress on that day. A script to help with these calls is available online at www.narfe.org/legislation. Tell NARFE Headquarters about your advocacy activity via email to advocacyinaction @narfe.org or go to www.narfe. org/legislation.

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Pay Freeze extension bill Introduced Again in House

t press time, a bill to extend the federal employee pay freeze for a third year had just been introduced in the House of Representatives. H.R. 273 is likely to come

before the House in the coming weeks. In one of its final acts before the 112th Congress adjourned, the House considered a bill that would extend the federal employee pay freeze for an additional year. Although it passed in the House, it was not taken up in the Senate and died with the end of the 112th Congress. The legislation (H.R. 6726), which also would have frozen the pay of members of Congress in 2013, came on the heels of an Executive Order by President Obama officially ending the pay freeze on March 27. Despite the fact that a pay freeze for members of Congress was already included in the legislation passed in the Senate to avert the fiscal cliff, House members insisted that federal employees’ pay be frozen as well. The vote forced members of Congress to be in the unfortunate situation of having to vote against a pay freeze for themselves if they wanted to support and protect federal employees. Reacting quickly to news of the bill, which was introduced just prior to midnight on New Year’s Eve and voted on 12 hours later, NARFE President Joseph A. Beaudoin sent a letter to the Hill urging opposition to the bill. “Federal employees should not be made victims of votes designed to score politi-

cal points,” Beaudoin said. “The bill was just introduced and is being rushed to a vote on New Year’s Day. It is designed to force members either to freeze the pay of federal employees or vote themselves a pay raise.” Rep. Gerald E. Connolly, D-VA, a strong supporter of the federal workforce and retirees, agreed with Beaudoin and called the bill “yet another tired, duplicative, cheap shot at our nation’s dedicated federal workforce – one last parting shot in the dying days of this 112th Congress.” Connolly added: “If members of Congress and the public simply ‘take a look at the scoreboard,’ they will see that, with respect to deficit reduction, federal workers have already borne a disproportionate cost. In fact, they have virtually borne the only share of the cost.” Ultimately, fearing the prospect of being held accountable for not voting to freeze their own pay, House members voted 287-129 to pass the bill. The bill will be included in NARFE’s congressional scorecard for the 112th Congress. To see how your member of Congress voted on this legislation, visit: www.govtrack.us/ congress/votes/112-2012/h655. –By Jessica Klement, legislative director

Postal reform Process begins again

ostal reform legislation, which was not enacted in the last Congress, must be reintroduced and work its way again through the legislative process in the new 113th Congress.

House and Senate negotiations went down to the wire in the last Congress, but no compromise was reached before adjournment. One issue on which the two sides were unable to reach a compromise was reductions to workers’ compensation benefits for all federal workers injured on the job. NARFE opposed the

Senate-passed bill, S. 1789, labeling as “unfair” the workers’ comp reductions contained within the bill. Throughout the negotiating process, the Association continued to work with members of Congress and their staffs to oppose or improve the language. NARFE’s argument was bolstered by a report by the Govern-

ment Accountability Office that said changes contained within S. 1789 could leave injured employees with substantially less income in retirement than they would have received had they been able to work a full career. While any new Senate bill may be similar to S. 1789, it is likely to contain some differences because of the new leadership of the Homeland Security and Governmental Affairs Committee (see story, p. 7). –By John Hatton, Deputy Legislative Director

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Washington Watch

MYTH vs. REALITY Myth: Federal employees don’t pay Social Security payroll tax but receive its benefits.

CONGRESSIONAL RETIREMENT NOW ON PAR WITH OTHER FEDS

ontrary to rumors, members of Congress have never qualified for a pension equal to their full salary after serving only one term, but previously they did receive

better retirement benefits than the average federal employee.

Reality: Civil Service Retirement System employees do not pay into Social Security and, accordingly, do not receive any Social Security benefits for their government service. If they paid into Social Security for a job held in the private sector, their Social Security benefits are greatly diminished under the Windfall Elimination Provision of tax law. Employees under the Federal Employees Retirement System do have Social Security withheld from their paychecks at the same rate as private-sector employees – 6.2 percent – and receive the same benefit.

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Members of the 112th Congress (2011-2012) addressed this issue, but only for future members of Congress. The future is now, and newly elected members of the 113th Congress will not be earning retirement benefits as generous as those earned by their alreadytenured colleagues. They also will be required to contribute more from their salaries to fund their retirement benefits. Now, their retirement benefits will be calculated at the same rate, and they will contribute the same amount from their salaries, as other newly hired federal employees. Those changes were enacted into law on February 22, 2012, as part of a budget deal. That deal also required all other newly hired federal employees to contribute 2.3 percent more of their salary toward retirement benefits. NARFE opposed the increase in contributions for newly hired federal employees but generally supported the idea of bringing retirement benefits for members of Congress in line with other federal employees. Specifically, under the new law, newly elected members of Congress and newly hired congressional staff (and those returning with fewer than five years of service)

will pay 1.8 percent more from their pay to fund their retirement annuities, for a total contribution of 3.1 percent of their salary. In addition, they will accrue benefits at a rate of 1 or 1.1 percent per year of service (multiplied by the highest consecutive three years of pay), rather than at a rate of 1.7 per year of service (multiplied by the highest consecutive three years of pay), the rate of accrual for already-serving members of Congress and congressional staff. The only difference in congressional retirement benefits now is that both tenured and newly elected members will be eligible to start collecting retirement benefits at a younger age (50) and with fewer years of service (20) than other federal employees. Another change in benefits for all members of Congress and their personal office staff will occur in 2014. Instead of receiving their health benefits through the Federal Employees Health Benefits Program, they will receive health benefits through the state-based health insurance exchanges envisioned by the Affordable Care Act. –By John Hatton, Deputy Legislative Director

Legislative Resources

FECA Beneficiaries to Receive 1.7 percent COLA in March Individuals receiving insurance benefits under the Federal Employees’ Compensation Act (FECA) will receive a 1.7 percent cost-of-living adjustment (COLA) to their benefits in March. Benefits awarded under FECA to individuals who have been disabled by a job-caused injury or illness receive COLAs based on each calendar year’s percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Federal civilian

and military retirees, as well as Social Security beneficiaries, receive COLAs based on the third-quarter average from year to year. The December 2012 CPI-W figure, 225.889, is 1.7 percent higher than the December 2011 CPI-W figure. NARFE supports strong COLAs based on fair assessments of increases in consumer prices to protect the value of federal annuities and workers’ compensation benefits from inflation.

• 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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Questions & Answers

Retired Federal Employees Paperless 1099-R?

I recently received my annual “Notice of Annuity Adjustment” from the Office of Personnel Management (OPM) and read that, starting in 2014, OPM no longer will mail 1099-R tax forms. The only way we can get access to this statement will be through the use of a computer. I can’t believe that OPM is doing this. It’s fine for those of us with computers, but there have to be thousands upon thousands who do not have access to a computer nor the knowledge to do this, even if they do. Please do what you can to reverse this decision.

We have had several contacts from NARFE members and officers about the message that OPM included in this year’s annual annuity adjustment notice, indicating that, in 2014, only electronic 1099-Rs would be available. We asked OPM to clarify the message because there was no mention in the notice of a mailing option for these forms. OPM officials told us that, while 12

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the agency is urging all retirees to use either “Services Online” or have their 1099-Rs sent to them via email, there would be future OPM messages this year that will provide a procedure for annuitants and survivors to stop receiving a paper 1099-R and “opt in” to receive 1099-Rs electronically. We are interpreting this to mean that annuitants can still receive their 1099-Rs in 2014 by

mail if they do not elect to receive them electronically. OPM officials said the agency “will continue to work with all annuitants to ensure they get the information they desire in the format they find useful, to the maximum extent possible.” We will, of course, monitor this issue throughout the year and report to members what we learn.

Corps’ Annuitant Cadre Program

I went to work for the Army Corps of Engineers after Hurricane Katrina on a temporary basis in a program for retired federal employees. Is the Corps looking for retired feds in the aftermath of Hurricane Sandy?

The Army Corps of Engineers has an ongoing program for retired civil service employees who are

able to deploy to support disaster recovery, as well as other Corps of Engineers missions. The Reemployed Annuitant Cadre program was created in response to Hurricane Katrina in 2005 and has been expanded to provide temporary employees to supplement other Corps missions. It currently has about 1,500 annuitants enrolled. Participants in the program were deployed in the aftermath of Hurricane Sandy and also were called into service after tornadoes in Joplin, MO, and communities in Alabama. The program seeks retirees with safety, engineering, budget and accounting experience. Annuitants must be on the rolls of the program to be eligible for possible deployment. To find out more about the program, contact the Army Corps of Engineers Reemployed Annuitant Office at 202-761-8548.

Health Insurance and Remarriage

My wife and I both retired from federal service in January 1997. At the time, we both had self-only coverage under the federal Blue Cross/ Blue Shield Standard option. My wife passed away two years ago. I have been told that, if I ever get married again, I will not be able to convert to a family plan; thus, my new wife would not be eligible for any health coverage under my plan. Is this true?

The answer depends on several factors. Is your coverage under the Fed-

eral Employees Health Benefits Program (FEHBP) your own enrollment as a retiree, or is it as a survivor under your deceased wife’s record? If you are enrolled under your own retirement, and premiums are withheld from your monthly annuity, then you can cover a future spouse as a dependent by electing a family plan after your remarriage. If, at retirement, you were covered under your deceased wife’s FEHBP enrollment and are now enrolled as a survivor but also were eligible to be enrolled as a retiree in your own right (you were either enrolled or covered by your wife’s enrollment for the five years immediately preceding your retirement), you can request that the Office of Personnel Management transfer the FEHBP enrollment to your retirement and start having premiums withheld from your monthly annuity. You could then cover a future spouse as a dependent under a family enrollment. However, under the law, survivors who are covered by the FEHBP because the enrollment was transferred from a retiree at death and who have premiums withheld from the monthly survivor annuity cannot cover a new spouse as a dependent. If your deceased wife had the FEHBP enrollment for both of you under her retirement, and after her death the enrollment was transferred to you as a survivor, you cannot cover a future spouse under that enrollment.

Reduced FERS COLAs

I am a recent retiree and long-time NARFE member. In reviewing the January issue of narfe magazine, I failed to find any reference to the 1 percent cost-of-living reduction for retirees under the Federal Employees Retirement System (FERS).

Under the law, FERS annuity payments are subject to the full COLA increase, just as for Civil Service Retirement System retirees, if the increase is below 2 percent, as was the case this year. In years when the COLA is between 2 and 3 percent, FERS annuity payments will increase 2 percent. In those years when the COLA is above 3 percent, FERS annuities will increase at a rate that is 1 percent less than the full COLA.

Medicare Premium Penalty

Although I have been a federal employee, I did not retire from the federal government. I receive an annuity as a surviving spouse. My wife died some years ago while an active federal employee. As an annuitant, I am eligible to and do carry health insurance through the Federal Employees Health Benefits Program (FEHBP). I will be eligible for Medicare in about six months. The question arises as to what to do about Medicare Part B. Medicare permits deferred enrollment for Part B – without the 10 percent per year premium penalty – if a person w w w. n a r f e . o r g

Questions & Answers

Coverage under the FEHBP either as a retiree or as a survivor does not meet the definition of being covered under your employer’s group plan. has continuously been covered by comparable insurance provided by his or her employer from the date of eligibility to the date of enrollment. Is FEHBP insurance coverage as a surviving spouse considered to be employer-provided insurance? I cannot find any clear statements addressing this question on the Medicare or Office of Personnel Management websites. Can you point me somewhere that would tell me whether my status as a surviving spouse makes my insurance “employer-provided” for the Medicare waiver of the deferred enrollment penalty?

Coverage under the FEHBP either as a retiree or as a survivor does not meet the definition of being covered under your employer’s group plan and, therefore, does not protect you from the 10 percent late enrollment surcharge for Medicare Part B. In the 2013 edition of the publication Medicare & You, it states: If you didn’t sign up for Part A and/or Part B when you were first eligible because you’re covered under a group health plan based on current employment (your own, a spouse’s or a family member’s if you’re disabled), you can sign up for Part A and/or Part B: • Anytime you’re still covered by the group health plan. • During the eight-month period that begins the month after the employment ends or the coverage ends, whichever happens first. 14

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It is clear that, in order not to pay the late enrollment surcharge for Part B, you had to have been covered as an employee by your employer. Note: For additional information on Medicare, go to the NARFE website, www.narfe.org, log in as a member and click on the Federal Benefits link to access Medicare & You.

active employees Benefits With 20 Years of Service?

In several years, I will be retiring from federal service at age 67. I will have 20 years of service. Will I be eligible to receive Social Security, Thrift Savings Plan (TSP) account funds and a retirement annuity?

Without any specifics to go on, we would say “yes” to your question. With 20 years of federal service, we make the assumption that you are under the Federal Employees Retirement System (FERS). The rules for eligibility under FERS state that you can retire at age 62 with five years of civilian service. Full retirement age for Social Security benefits depends on your year of birth. Age 67 is the full retirement age for anyone born in 1960 or later. You can either withdraw some or all of your money from your TSP account once you are retired, or you can choose to leave

it in your TSP account but must start taking minimum withdrawals at age 70-½. The early withdrawal penalty tax of 10 percent will not apply to your withdrawals because you will be over age 55 when you retire. We suggest that you meet with your agency retirement counselor two years prior to retirement to make sure that you meet the eligibility requirements and have made any required deposits or redeposits.

need My full Pension

I will be retiring at the end of March. I and some fellow employees who also are contemplating retirement are worried about getting our full pensions on time so that we can pay our bills and feed our families. I know that there is a backlog of pension applications at the Office of Personnel Management (OPM).

The retirement case backlog situation at OPM led to NARFE testifying at both a Senate and House subcommittee hearing on the issue last year. Prior to the hearings, NARFE had met with Sen. Mark Warner, D-VA. Since that time, OPM has, as you mentioned, made improvements but is still not near its goal of completing 90 percent of retirement cases within 60 days of receipt from the employee’s agency by this July. Since the hearings, NARFE has been in touch with Warner and OPM Director John Berry on the status of the backlog, and NARFE will continue to take appropriate and necessary action on behalf of federal employees.

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emember the feeling you had the first time you got into a hot tub? The warm water, the energizing bubbles and the gentle hydrotherapy of the jets left you feeling relaxed and rejuvenated. Aches and pains seemed to fade away, and the bubbling sound of the water helped put you in a carefree and contented mood. The first time I ever got in a hot tub at a resort, I said to myself “One of these days I’m going to have one of these in my home– so I can experience this whenever I want.” Now that I’m older, I’d still like to have the pain relief and relaxation, but I have to be careful about slipping and falling in the bathroom. That’s why I was thrilled to find out that Jacuzzi had combined the safety of a walk-in bath with the benefits of a hot tub. Now that I have one in my home I can have that luxurious resort experience… whenever I want. The moment you step into your Jacuzzi Walk-In Hot Tub you’ll see the superior design and the quality of the craftsmanship. The entry step is low

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NARFE at Your Service Tax-Free Annuity?

I was told that, when I retire, a certain amount of my yearly pension would not be taxed. Is there a formula for determining the annual tax-free amount?

Internal Revenue Service (IRS) publication 721, Tax Guide to U.S. Civil Service Retirement Benefits, describes how to compute the tax-free portion of your taxes on both Civil Service Retirement System and Federal Employees Retirement System annuities, as well as survivor annuities. It also covers such things as taxes on Thrift Savings Plan accounts, exclusions of insurance premiums for public safety

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officers and taxes on voluntary contributions. This document is available from the IRS website, www.irs.gov. You also can call the IRS at 800-829-3676 and request a copy. In addition, the Office of Personnel Management has a tax calculator on its website, www. opm.gov, that you also may want to use. To obtain an answer to a federal benefits question, NARFE members should call 703838-7760 and ask for the Federal Benefits Service Department; send your question by postal mail to NARFEâ&#x20AC;&#x2C6;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 are also available in some areas. Use the Service Center listings on the NARFE website,

www. narfe.org.

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Everybody loves Silver Dollars. And it’s not hard to ﬁgure out why. The feel of a hefty, gleaming Silver Dollar in your hand is hard to beat—especially when the coin is struck from 99.9% pure silver. But even though Silver Dollar sized coins are struck all over the world, not all Silver Dollars are created equal. In fact, savvy collectors have known three exciting “secrets” about the Australian Koala Silver Dollar for years. Secrets you should know too!

Actual size 40.6 mm

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Cover Story

Long-Term Care Achievements and Challenges of the Federal Programâ&#x20AC;&#x2122;s first 10 years

By David Tobenkin

n the fall of 2007, Robert Thilo was a 63-year-old retired assistant hospital administrator for the Department of Veterans Affairs, enjoying a busy retirement in Little Rock, AR. Thilo remodeled homes, sold real estate and worked at a nonprofit organization as a supervisor of a sheltered workshop that taught mentally handicapped adults basic jobs. The home remodeling was physically challenging work. But Thilo’s health was good. In fact, his doctor had found no problems during a physical exam conducted six months earlier. Then, in an instant, Thilo’s life changed. “Bam! Out of nowhere, I had a major stroke,” Thilo says. “I never would have thought that within five years of retiring a major stroke would render me incapacitated and unemployable.” Fortunately, five years earlier, in 2002, Thilo had made a decision he gave little thought to at the time. He signed up for the Federal Long Term Care Insurance Program (FLTCIP), which pays benefits for long-term care necessitated by medical conditions. The decision has had a major effect on his finances, with the program paying out more than $144,700 to date to Thilo, who is now age 69 and living in Charlestown, IN. He has used the money to pay for care in an assisted living facility and, earlier, a home caregiver – costs that Thilo says would have otherwise depleted his savings.

A Decade of Achievements and Challenges

Launched in 2002, the FLTCIP last year celebrated its 10th year of offering federal employees, retirees and qualified relatives a long-term care product tailored to their needs. The program, whose product helps support the costs of assistance with daily needs such as eating, dressing and bodily necessities, is an unusual public-private amalgam. It is offered by a private underwriter, Boston-based John Hancock Life Insurance Co., and is administered by a private administrator, Long Term Care Partners, LLC (LTCP), which is a subsidiary of

Online Bonus. A second article, “Does It Make Sense and Which Plan,” is available online for NARFE members. To read the article, go to www.narfe.org/narfemagazine and click on “Online Bonus Article.” Illustration by Bill Pragluski, Critical Stages, LLC

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Long-Term Care

John Hancock. However, the FLTCIP was designed by, and is subject to federal oversight of, several congressional committees and the Office of Personnel Management (OPM), the latter of which also, unusually, serves as the program’s sponsor, or employer. After a decade of service, the FLTCIP can point to a tally of both achievements and challenges. With nearly 270,000 enrollees, it is the largest long-term care insurance program in the country. It offers a strong Web presence that helps guide federal employees and retirees through the sometimes confusing task of determining whether coverage is warranted and, if so, the right type and level of coverage for them. It also offers a centralized presence for interacting with the program and processing claims, and offers certain types of coverage that private alternatives do not, such as coverage to employees in war zones and no mental health exclusions. A total of 10,000 claims under FLTCIP policies have been made to date; the program is paying $7 million a month in claims; and it is handling approximately 160 new claims per month, according to LTCP data. “I think that we have put a model up there that is not only effective in itself but could serve as a platform for a larger national program in a way that would sweep in all Americans, though we are nowhere near to cracking the long-term care financing nut,” says Paul Forte, chief executive officer of Portsmouth, NH-based LTCP, administrator of the FLTCIP. “It’s a model delivering large amounts of coverage to people simultaneously, and it is federally regulated in a way that allows less money to go into marketing and agents, and more into technology.” On the other hand, the FLTCIP has penetrated only a small portion of the eight million federal employees and annuitants and 12 million qualified relatives who could take coverage. The number of enrollees barely grew from 187,000 in 2003 to 224,000 six years later in 2009, before a substantial uptick in the last three years to more than 270,000 – growth that largely reflected an Open Season with reduced underwriting criteria in 2011 that led 45,268 new enrollees to sign up, a more than 20 percent increase. “We were expecting the baby boomers to drive a tsunami of growth, but we just haven’t seen it,” says Joan Melanson, LTCP director of program promotion. “I think people are in denial. Baby boomers – and I’m one – are a different animal. We’re going to live forever and have so many other priorities that this is not on the list.” A major reason few of those eligible have signed up for FLTCIP coverage is that the cost of this insurance, like private alternatives, can be high, often ranging into the low hundreds of dollars per month, depending upon age and option. Too, more than half of those who had signed up through 2009 were surprised by rate increases of 5 percent to 25 percent in 2010, which, in fairness, also occurred at some other private carrier programs, and reflected continuing low program investment income and attempts to better relate premiums to policyholder demographic data.

the Federal Program’s first 10 years

A Grim Product

Death is a certainty and, therefore, at some point most rational individuals make

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plans to confront the challenges it poses. In contrast, long-term care deals with protecting against a contingency, the possibility of losing major bodily or cognitive functions in a manner in which the individual is incapacitated for a substantial amount of time, and income, savings and other assets would otherwise be depleted to pay for the high cost of resulting care. The long-term care insurance product is a relatively recent one, being only about 30 years old, compared to more than 100 years for life insurance. The definition of what triggers eligibility for longterm care payments is consistent throughout the industry. Policyholders are eligible for payment after demonstrating they need assistance with two of six activities of daily living, such as eating, bathing and dressing, and after they satisfy a waiting period, which acts like a deductible. The most common scenario is end-of-life deterioration, often ending in hospice care in the final stages of life. But there are other circumstances, including permanent physical limitations caused earlier in life through accidents, illnesses, wartime combat and the like. The care provided under the FLTCIP and other long-term care programs is custodial care assisting with those daily living activities. Generally not covered under the FLTCIP is skilled health care, such as physical therapy and the administration of medicines, which is the domain of health insurance. Forte and others at the LTCP are candid that long-term care insurance in general, and their program in particular, is only appropriate for a subsection of federal employees and others who are eligible to purchase it. Those with substantial assets, such as a high-value, paid-off home, and a substantial income flow can probably afford to self-insure against the risks of long-term care. Some individuals with large families may be able to rely upon them for such care. And individuals with almost no assets and no income flow likely will qualify for Medicaid and have higher priority financial needs than paying large premiums to cover the possibility of needing long-term care. For those who are good financial candidates, a key reason to obtain coverage, in addition to protecting assets, is to avoid imposing the burden of care on family members who are often ill-equipped and greatly stressed to provide such care, says Tammy Flanagan, senior benefits director at the National Institute of Transition Planning, Inc., a Rockville, MD-based provider of seminars on benefits for federal employees.

The FLTCIP Program

The FLTCIP program was created by passage of the Long-Term Care Security Act of 2000, which was signed into law by former President Bill Clinton, who was a major proponent of the legislation. NARFE was involved in supporting the legislation and has helped the LTCP reach out to NARFE members about the FLTCIP. The FLTCIP is available to current and retired federal employees, including Postal Service and the uniformed services, as well as their spouses, in-laws and adult children, if they can qualify. Same-sex domestic partners of eligible civilian and Postal Service employees/annuitants also are

With nearly 270,000 enrollees, the FLTCIP is the largest long-term care insurance program in the country. eligible. Each person under a plan is independently underwritten. Certain high-risk conditions, such as amyotrophic lateral sclerosis and multiple sclerosis, or current residence in a nursing home, will eliminate eligibility under the FLTCIP. Generally, the older an applicant is, the more coverage costs, with a 65-year-old likely to pay more than twice as much in monthly premiums for the same coverage as a 45-year-old. Several different options are available, including four prepackaged plans. All FLTCIP options have limitations. Most have duration and payout limits. While there is an â&#x20AC;&#x153;unlimitedâ&#x20AC;? option without such a cap, it can be so expensive that many will likely opt for lower daily benefit amounts than they could afford under a shorter benefit period. Another option allows for adjustment to respond to inflation, including adjustments up to 5 percent annually. Once enrolled, enrollees must continue paying premiums each month or the policy lapses, eligibilw w w. n a r f e . o r g

Long-Term Care the Federal Program’s first 10 years

ity for any benefits is ended, and previous premium payments are forfeited. The only real option in this respect, including in the event that financial stresses make paying premiums problematic, is arranging a reduction in coverage with the LTCP. There is a 90-day waiting period for compensation to become available under the plan, as opposed to waiting periods that range from 0 to 365 days in the private sector. However, there is only one waiting period required per policyholder. The Government Accountability Office (GAO) has examined the FLTCIP program three times, twice in 2006 to examine the program’s initial claims history and marketing, and again in 2011 to examine the competition to be the insurance carrier behind the program for the 2009-16 period. John Dicken, a director in GAO’s health care team who evaluated the FLTCIP for all three GAO reports, says that his examination of the program, which included comparisons to products offered by others in the long-term care industry, found that the program did not have any systemic weaknesses.

The FLTCIP Difference

Many aspects of the FLTCIP program are nearly identical to any other long-term care insurance program. But some differ. For one, the FLTCIP is self-funded through an independent experience fund that neither the federal government nor the carrier John Hancock can tap for other purposes. The unique role of the federal government is a good thing, given the extreme stress that some insurers, such as American International Group, faced during the U.S. financial crisis in 2007-10, says Mark Keen, a certified financial planner at Fairfax, VA-based Bennett Financial Advisors, Inc., who also notes that John Hancock is financially strong. Another difference is that policies are sold and managed through the LTCP, not via brokers or agents. LTCP 22

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profits under the contract with OPM are determined based on performance, as measured by 20 metrics designed to reflect the experience of customers, including speed answering telephones, speed turning in applications and speed approving [long-term care] applications. Another unusual aspect of the program is that, while many long-term care programs don’t pay for care overseas, the FLTCIP pays 80 percent of the total value of the policy for services received outside of the United States, in part reflecting the reality that many federal employees work out of the country and want to retire abroad. That can be a very attractive way to leverage the benefits of the program, given that long-term care costs outside of the United States are sometimes only a fraction of the cost within the United States. Also unusual is that the FLTCIP has no policy exclusion for wartime injuries, considering that many federal employees must face such risks as part of their assigned duties. Open Seasons have occurred twice since the FLTCIP program began. In addition, new employees have an Open Season window of 60 days after they are hired in which to enroll. Enrollment under such Open Seasons allows the use of an abbreviated questionnaire, which reduces the number of questions for policy applicants from 28 to seven-to-nine questions. For some who would otherwise not qualify, the abbreviated underwriting can be a bonanza. “My husband entered [the FLTCIP] in 2011 during the Open Season, and he wasn’t asked about a heart condition that he had in 2006 that would have come up on the full underwriting application and might have stopped acceptance in another plan,” says Flanagan, discussing her personal experience with the program. Unlike some private carriers, however, the FLTCIP does not offer discounts for spouses and family members or discounts for enrollees in good health. That could lead to lower rates under private plans, some analysts say. NARFE members and Keen also asserted that some private carriers have thus far avoided the large premium increase the FLTCIP program and other carriers have implemented in recent years. FLTCIP’s Forte does not oppose comparisons and admits that other long-term care insurance plans may make more sense for some federal workers in certain circumstances. “There could be situations where it could be better to go with another insurance,” Forte says. “For instance, if you want a 10-year plan, we don’t offer that. Or a policy where you could borrow from your spouse’s benefits if [your policy] ran out, which we don’t offer.”

Recent Challenges

The years 2009 and 2010 were eventful ones for the FLTCIP. First, premiums were increased by 5 to 25 percent

for 66 percent of policyholders, with the largest increases imposed on the youngest policyholders, a step taken to ensure the program would not be underfunded in future years. A large part of the policy exposure that led to the increase reflected the 5 percent inflation adjustment option. Trying to cushion policyholders against inflation increases adds much more risk for the plan having to make high policy payouts. Policyholders were offered the option of paying more for the same coverage or converting to reduced coverage for the same amount. Some were surprised or angered and had little recourse but to take the second option. “My original goal when I signed up was to get in on the lower premiums while we were younger because many premiums are at a higher cost if you wait too long to enroll,” says Carol Amano, a 57-year-old former supervisory contract specialist for the Department of Defense living in Oceanside, CA, who took out policies for herself, her husband and her daughter in 2002. “When the increase in FLTCIP premiums came down . . . I had to adjust the benefits [downward] for our three policies to stay within our budget since I knew I would be retiring in 2010. If the premiums go up again, I am not sure I can afford it. If I cancel or cut back again on benefits, that means years of paying into a program that I didn’t reap any benefits from.” The LTCP says it has made changes in its communications and marketing materials to highlight the risk that rates could increase again at some point. Still, despite the premium increases, the lapse rate remained low, under 1.7 percent. In October 2009, when John Hancock took over full control of the FLTCIP contract from Metropolitan Life, with which it had partnered for the first seven-year term (2002-2009), it unveiled a new benefits package. FLTCIP 2.0 is designed to address feedback by existing and potential enrollees requesting changes to the program. The FLTCIP altered its program to provide home care reimbursement at 100 percent of the daily benefit amount, instead of the previous coverage of 75 percent, a stay-at-home benefit that can be used during the waiting period, and increased options for informal care benefits provided by immediate family members. In addition, the FLTCIP 2.0 program changed the waiting period from 90 service days to 90 calendar days to expedite the ability of enrollees to access care faster. No other major changes to the program are in development, says Forte and OPM.

The Future

In addition to hoping the insurance will become more accepted as it matures, the LTCP’s Forte and many others are now emphasizing that potential enrollees should consider whether the planned level of coverage may actually be too much. Many say that long-term care insurance is so expensive because employees pick the most expensive options, such as the “unlimited” care option. Much turns on possible premium increases for existing policyholders, which Forte and others concede cannot be accurately predicted. “OPM has no current plans to increase the FLTCIP premium rates,” says John O’Brien, OPM director of health care and insurance. Flanagan, however, says that policyholders in their 60s should expect at least one or two such hikes in any long-term care policy before they call upon it. Flanagan says this, in part, reflects the probability that those with such policies will use them heavily rather than other options, such as care from family. Still, even some policyholders who noted the coverage is costly and who ended up not using a policy say they received something for their payments: peace of mind. “A little over a year and a half ago, I was about to file a claim for my wife, but she died the day she was eligible for me to file a claim on her,” says William, a Department of Veterans Affairs retiree. “I was pleased with the interactions I had with Long Term Care Partners and with their willingness to put the policy into effect. My wife didn’t get the benefit, but it gave us peace of mind knowing we had the insurance we needed. It was worth it as far as I was concerned.” Forte says that the FLTCIP, as a young entrant in a young industry, could well change in the longer term as its experience record, position and relationship to other products become clearer, as was the case in the evolution of life insurance. “This is a relatively new product that may have to morph into something else,” Forte says. –David Tobenkin is a free-lance writer based in the Washington, DC, area.

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Special Section

Defending Your Benefits NARFE’s Political Action Committee is a separate, segregated fund that collects, administers and disburses the voluntary contributions of NARFE donors to congressional candidates on a bipartisan basis. NARFE-PAC’s goal is to harness the Association’s electoral muscle as a complement to members’

Photo illustrations by Jim Richards

w w w. n a r f e . o r g

Defending Your Benefits

voting power, grass-roots activism and professional advocacy. NARFE-PAC was chartered in 1982 to take advantage of the post-Watergate reform of campaign finance laws that imposed contribution limits, and required accountability and disclosure. Rightfully celebrated and featured each March since 2003, NARFE-PAC is the only NARFE solicitation that directly supports our core mission: legislative and political advocacy to protect the earned benefits of current and future federal retirees. Running successfully for Congress is expensive. House races average well over a million dollars. Competitive races are often in the tens of millions. Senate races, more likely than House races to be very competitive, cost far more. Most of the public is content to let others bear the high cost of running for Congress. NARFEPAC is based on the reality that NARFE must be able to defend membersâ&#x20AC;&#x2122; earned benefits. That is why NARFE-

PAC is often called the Federal Employees and Retirees Defense Fund. To be in a position to assist in the defense of active and retired federal employees, now continuing under focused attack, the frequency of direct appeals requesting a one-time or recurring NARFE-PAC contribution will occur more often than once every two years as in the past. The NARFE-PAC lapel pins, including our 20132014 pins shown below, are available now. The most

You Give, NARFE recognizes generous NARFE-PAC donors based on the following contribution levels (made over the course of the 20132014 election cycle):

$20

Basic Level 2013-2014 NARFE-PAC lapel pin (red, white and blue)

$50 Silver Level 2013-2014 NARFE-PAC lapel pin $100

Gold Level 2013-2014 NARFE-PAC lapel pin, plus a blue NARFE-PAC Leader baseball cap. 26

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by the Numbers specific benefit for donors, these pins are a symbol of the donor’s commitment to NARFE’s mission. Donors are NARFE’s everyday heroes. Wear your pin proudly. During the years when NARFE-PAC art served as the cover for the March issue of narfe magazine, two stand out: The March 2006 cover, shown at left, was meant to suggest NARFE power. But, as has been stated before, NARFE-PAC is not our exclusive or even primary source of political power. Rather, NARFE-PAC must always complement other forms of activism, especially meeting directly with legislators. In fact, the most successful NARFE-PAC disbursements are those allowing our best ambassadors to attend and participate in fundraising events in the district or state. The March 2008 cover, also shown at left, is such a powerful image that it continues to be used by NARFEPAC as a table-top poster and regular reminder that NARFE-PAC is one of the keys to Capitol Clout. Chapter, district and federation meetings should always feature NARFE-PAC. –By Christopher Farrell, Legislative Representatiive

31,636

NARFE-PAC amalgamates the small, voluntary contributions of NARFE donors (some 31,636 during 20112012) in order to make member-guided disbursements to House and Senate candidates (171).

$991,434.13

During the 2011-2012 election cycle, NARFE-PAC’s generous donors contributed $991,434.13.

$31.34 The average contributor

gave $31.34.

$2,376

PACs are allowed to contribute up to $5,000 per election per candidate ($10,000 per cycle because the primary and general elections are considered separate elections). During 2011-2012, NARFE-PAC disbursements were substantially below the law’s limit, averaging $2,376 to House candidates and

$4,363 to Senate candidates.

Gives Back Additionally, members who sign up for monthly credit card contributions of $10 or more will receive the Gold Level pin and a blue NARFE-PAC Leader baseball cap. If you are just now signing up for monthly credit card contributions of $10 or more, you also will receive a NARFE-PAC Sustainer pin. In addition to giving using the envelope inserted between pages 26 and 27, NARFE members can give online at the NARFE website, www.narfe.org, or at chapter meetings. (Chapter-level NARFE-PAC officers may request supplies of the Basic Level [$20] NARFE-PAC pin to promote contributions at chapter meetings. Because of lower supplies, the caps and the Silver, Gold and Sustainer pins will be distributed primarily from NARFE Headquarters.) w w w. n a r f e . o r g

Defending Your Benefits

The Consultative Process

The role of political action committees such as NARFE-PAC underlies the importance of fundraising in our electoral process, as campaigns need the resources to promote their messages effectively to voters. But no matter how much money is poured into never-ending television advertisements or mass mailings, at the end of the day, the winner is still decided by the total of every individual vote cast at the polls, not by who has raised the most money. Voters in the congressional district make the decision. With this principle in mind, NARFE-PAC decisions are made in consultation with local NARFE members. Here’s how it works: A member of NARFE’s Legislative Department will ask the state federation NARFE-PAC coordinator for a recommendation on whether to provide a contribution to a particular congressional candidate. The federation NARFE-PAC coordinator should, in turn, poll chapters within the district of the candidate in question. Before a final decision is made, the federation NARFE-PAC coordinator will be given an opportunity to share the views of NARFE officers and members within the state and/or district. The consultative process also encourages the candidates to reach out to local chapter and federation officers. In fact, NARFE’s Legislative Department often directs candidates to do this, as we wait for input from chapters and federations. This provides an opportunity to foster a relationship with current and future members of Congress, and to talk about issues of concern to the federal family. Final decisions also are based on a variety of other factors that help determine whether supporting a candidate is likely to benefit NARFE members across the country. First, how well does the candidate support NARFE’s

WANT TO KNOW MORE? Visit www.narfe.org for additional information about NARFE-PAC. Click on “About NARFE” on the Home Page and select “NARFE-PAC.”

agenda of protecting the earned compensation and benefits of federal employees and retirees? The candidate’s voting record is the best indication of this. Candidates can make broad, general statements in support of federal employees or even cosponsor bills that have little chance of reaching the floor for a vote, but it is their votes that count the most. We also evaluate how accessible and receptive a legislator is to NARFE, both locally and in Washington, DC. Even if a candidate has clout, it may not help if he or she neither supports the NARFE agenda nor listens to it. This is where the consultative process works to provide NARFE National Officers with information only local NARFE members would know. Only chapter- and federation-level officers know whether a congressman or a member of his or her staff has attended a local NARFE meeting, or whether the congressional office answers NARFE-member concerns via email or letter, and how well. Another important question is how much influence a candidate will have on issues affecting NARFE members. Is the candidate the chairman or member of a key committee that has jurisdiction over NARFE issues, such as the House Committee on Oversight and Government Reform? Does the senator or representative hold a leadership position that could be leveraged to expedite passage of friendly legislation or block an unfriendly bill? Has the lawmaker worked behind the scenes to help NARFE accomplish its goals? The professional lobbyists in NARFE’s Legislative Department take note of some of the less visible yeoman’s work done by particular members of Congress. Finally, how competitive is the election? If NARFEPAC’s contribution could make the difference between the election or re-election of a representative or senator who supports our issues and one who does not, that contribution carries more weight than in a less-competitive election, all else being equal. We get more “bang for our buck” if the NARFE-PAC contribution made to a candidate is the last dollar that results in victory. NARFE was successful in following this principle during the 2012 election cycle. Our last contribution was for the last election to be decided, more than a week after Election Day, with the NARFE-supported candidate receiving only a few hundred votes more than his opponent. –By John Hatton, Deputy Legislative Director

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Diet COLA in Benefits

Market basket?

By Amy Burke

Congress contemplates change that would result in lower benefits

In January, federal annuitants welcomed increased benefit checks that contained a 1.7 percent cost-of-living adjustment (COLA) for 2013. The COLA was smaller than the 3.6 percent in 2012, which followed two years of zero COLAs. Many seniors find it increasingly difficult to manage skyrocketing health care costs and other expenses with the current COLAs. Yet, a proposal is gaining traction in Washington to change a consumer price index (CPI) calculation that would drive COLA rates lower, reducing benefits for both current and future retirees. The proposal would use a slower growing Chained CPI for all Urban Consumers (C-CPI-U) as the basis for COLAs, and would have a substantial negative impact on retirement benefits (see related chart, p. 33). Currently, the CPI for Urban Wage Earners and Clerical Workers (CPI-W) is used to calculate COLAs, comparing the CPI-W from the third quarter with the third quarter of the last year in which a COLA occurred. Over the past decade that the Bureau of Labor Statistics (BLS) has measured the Chained CPI, it has averaged 0.3 percent lower annually than the traditional CPI measure. The Chained CPI assumes that, when

Diet COLA in Benefits

Market basket? faced with rising costs, consumers will substitute lower-priced similar items in different categories. For example, if the price of beef is high, consumers may choose lowerpriced pork. The flaws in switching to the Chained CPI to calculate COLAs are that many seniors already select lower-cost items, and even the current CPI-W fails to reflect the disproportionate effect of rising health care costs on retireesâ&#x20AC;&#x2122; expenses. On its face, the Chained CPI measure is billed as a technical correction that the Congressional Budget Office (CBO) estimates would save the federal government $217 billion over 10 years. NARFE estimates the change will result in a median reduction of cumulative federal retirement benefits over 40 years of $108,394 in nominal terms or $53,162 in real terms (inflation adjusted). In the fiscal cliff negotiations, the Chained CPI was tabled and withdrawn twice. As President Barack Obama and House Speaker

The Chained CPI hits our nationâ&#x20AC;&#x2122;s most vulnerable twice, NARFE contends. John A. Boehner, R-OH, worked to reach agreement on a fiscal cliff deal in midDecember, they both appeared open to including the Chained CPI. However, they did not reach agreement, and the package ultimately was not considered. Following a failed House vote on an alternate Republican package, negotiations shifted to the Senate. Some Republican senators made an effort to include the Chained CPI in the Senate measure, but ultimately dropped the demand when it contributed to the impasse between Senate Majority Leader Harry Reid, D-NV, and Minority Leader Mitch McConnell, R-KY. 32

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The final fiscal cliff deal ultimately negotiated between McConnell and Vice President Joseph Biden and signed into law did not contain the Chained CPI. Although the Chained CPI escaped the final fiscal cliff legislation, the proposal is likely to re-emerge in the coming months as Congress considers various legislation to address the automatic budget cuts (sequestration), expiration of the Continuing Resolution and the debt ceiling.

About the Chained CPI

The BLS measures the CPI to capture price changes over time of a basket of goods and services for an average consumer. To develop the CPI, the BLS collects purchase data in 87 urban areas across the country from 23,000 retail and service providers. To determine the actual spending patterns, or market basket, the BLS collects data from 7,000 households in a quarterly survey and from an additional 7,000 households in detailed biweekly diaries. The data are then aggregated in two stages to arrive at the final CPI figure. While some substitution is already accounted for within the current CPI-W formula, the Chained CPI uses a formula that includes substitution across categories. The Chained CPI formula is applied at the second stage of aggregating the data, and uses actual current and past month purchase information. However, since the data are collected from a broader population, they do not accurately reflect the market basket for seniors. Both the currently used CPI-W and proposed Chained CPI fail to account for the rapidly rising health care costs facing seniors, or that seniors may already be substituting lower cost items. NARFE continues to promote the concept of the CPI for the Elderly (CPI-E) to more accurately reflect the effects of inflation on seniors. Switching to the Chained CPI also has tax implications. Tax brackets are tied to inflation as measured by the CPI-U. If the lower Chained CPI is used, as incomes rise, brackets do not keep pace, and households

How the Chained CPI Would Affect Benefits would be automatically bumped into a higher tax bracket. The Joint Committee on Taxation reports that, by 2021, the tax liability would increase 14.5 percent for incomes of $10,000$20,000 and by 3.5 percent for incomes of $20,000-$30,000. The effect would particularly affect lower- and middle-income households because the higher tax brackets hit an upper limit. “In short, the Chained CPI hits our nation’s most vulnerable twice,” wrote NARFE President Joseph A. Beaudoin in a December 17, 2012, letter to Congress.

The Chained CPI and the Deficit

In its final report, the bipartisan National Commission on Fiscal Responsibility and Reform (Simpson-Bowles), created by Obama in 2010 and chaired by former Sen. Alan Simpson (R) and Clinton White House Chief of Staff Erskine Bowles, recommended switching to a Chained CPI to reduce benefit outlays. The CBO estimate of the Chained CPI’s savings of $217 billion over 10 years is comprised of $145 billion in benefits cuts and $72 billion in new tax revenue. The benefits cuts largely impact Social Security, with another $24 billion from federal and military retirement annuities, and the remaining $9 billion from Supplemental Security Income. As the National Academy of Social Insurance points out, “Two-thirds of deficit reduction comes from cuts in benefits borne by elderly and disabled Americans, while one-third would come from new tax revenue.”

NARFE Advocacy

NARFE is a leading group opposing the switch to a Chained CPI. In November, NARFE formed a coalition with military and disabled organizations and the National Committee to Preserve Social Security and Medicare to work together in opposing the change, and generated a November 15 letter to Congress, signed by more than 50 organizations. NARFE also worked with the Leadership Council on Aging Organizations, an umbrella group of 68 advocacy associations representing 60 million seniors. On December 3, The Washington Post pub-

NARFE commissioned an analysis of how the Chained-CPI-U would affect federal retirement benefits. For a Civil Service Retirement System retiree age 55 in 2015, based on median starting benefits of $32,000, the cumulative loss of benefits over 40 years was $108,394 in nominal terms or $53,162 in real terms (inflation adjusted).

Year Age

Benefits under CPI-W

Benefits under Chained CPI

2015 2020 2025 2030 2035 2040 2045 2050 2055

$32,000 $37,096 $43,005 $49,854 $57,795 $67,000 $77,672 $90,043 $104,385

$32,000 $36,559 $41,769 $47,720 $54,520 $62,288 $71,164 $81,304 $92,889

55 60 65 70 75 80 85 90 95

To compensate for the reduction in benefits, a retiree would have to save an additional $94,000 — trans– lating to annual incremental investments of $2,276 at age 25, $3,800 at age 35 and $8,434 at age 45.

lished a letter to the editor from Beaudoin, “Why the Chained CPI isn’t enough,” in response to a November 27 editorial the paper had published supporting the C-CPI-U as a more accurate inflation measure. In a December 17 letter to all members of Congress, Beaudoin urged members to oppose the switch to a Chained CPI, noting “proposals to substitute a Chained CPI for the current index (CPI-W) are unfair and will reduce significantly earned retirement benefits.” He concluded that the impact would “fall hardest on those who live the longest, as their savings dwindle, and on those whose sole source of retirement income is from their government benefit, including many receiving civil service or military retirement annuities.” NARFE also sent an action alert on December 12 to members, which resulted in one of the organization’s highest response rates – 7,000 members generating 35,000 letters to their senators, representatives and the White House. w w w. n a r f e . o r g

Diet COLA in Benefits

Market basket?

How the CPI Is Used to Calculate COLAs As established in 1973 legislation, cost-

NARFE received extensive press of-living adjustments (COLAs) for Social Security coverage, including The Washingare set in the fall of each year based on changes ton Post, Federal Times, Governin the third quarter Consumer Price Index for Urban ment Executive and Federal Wage Earners and Clerical Workers (CPI-W) comNews Radio. The media outpared to the third quarter of the previous year in which reach was part of the overall a COLA was effective. advocacy strategy, accordMilitary and federal retirees receiving annuities under ing to NARFE’s Legislative the Civil Service Retirement System (CSRS) receive Director Jessica Klement. COLAs equal to those for Social Security. Under the Fed“The media did an excellent eral Employees Retirement System (FERS), retirees receive job in drawing attention to COLAs at age 62, and receive 1 percent less than the Social the issue, which is not wellSecurity COLA when it exceeds 3 percent, 2 percent when known or understood.” She the COLA falls between 2-3 percent, and the actual COLA noted that there has been no under 2 percent. The Congressional Budget Office esticongressional hearing on the mates that a switch to a Chained-CPI-U would result in Chained CPI since 2010. “Lots a benefits reduction over 10 years of $3,900 for CSRS, of members of Congress didn’t $1,000 for FERS and $3,000 for average military retirknow what this was going to do ees. The Chained-CPI-U would not affect adjustments and were still learning what this to federal salaries because current employees do would mean for their constitunot receive COLAs. However, the Chained-CPI-U ents.” would diminish future benefits. Pay adjustments Klement also credits the fiscal cliff for active federal employees are governed by outcome to some “very vocal members the 1990 Federal Employees Pay Compaof Congress who see this as a huge hit and rability Act. The administration deterare not willing to compromise on entitlemines the amount of any proposed ment reform.” In particular, Sen. Bernard increase, subject to congresSanders, I-VT, was outspoken on this issional action. sue, commenting: “For millions of disabled told veterans and seniors living on fixed incomes, The the Chained CPI is not a minor tweak. It is a Washington significant benefit cut that will make it harder Post that the three for permanently disabled veterans and the legislative measures “represent a perfect elderly to feed their families, heat their homes, storm that many may not be expecting since we have avoided going over the fiscal cliff.” pay for their prescription drugs and make NARFE will continue actively to oppose ends meet. This misguided proposal must the Chained CPI. In addition, NARFE will be vigorously opposed.” advocate for the BLS to study the CPI-E in an Outlook effort to adopt a measure that truly reflects While NARFE achieved a short-term retirees’ cost of living. victory in keeping the Chained CPI out NARFE is encouraging members to conof the fiscal cliff bill, the proposal is like- tinue to communicate their opposition to the ly to emerge again, perhaps in the next Chained CPI to their members of Congress two months as negotiations start on seand the White House, and will continue to questration ($1.2 trillion in automatic cuts provide legislative updates through its action to defense and domestic spending), the Conalerts, website, Facebook and Twitter. tinuing Resolution expiring on March 27 and —AMY BURKE is a communications professional specializing in the debt ceiling. On January 4, Klement federal policies and politics. 34

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w w w. n a r f e . o r g

Managing Money

social security and the Federal Budget

s the fiscal cliff debate heated up in December, lawmakers tussled over a change in how cost-ofliving adjustments (COLAs) are calculated that

would save the government money but also reduce Social Security benefits over time (see related story, p. 30). Many opponents of the COLA calculation change argue that Social Security has no place in budget talks, pointing out that it has a dedicated revenue stream; a $2.6 trillion trust fund; by law can’t borrow; and, therefore, doesn’t add to the deficit. There’s a big problem with that logic, and it starts with the fact that Social Security is bringing in less than it spends. In fact, Social Security spending has exceeded its noninterest income since 2010 and, according to the 2012 Social Security Trustees Report, will continue to do so over the next 75-year projected period. This means Social Security must cash in its trust fund assets to fund the shortfall each year. While many focus on the impending exhaustion date of the trust fund – now projected to occur in 2033 – the Treasury has a more immediate problem with paying back the money it borrowed from Social Security. And that’s the crux of the problem. The Social Security Trust Fund isn’t anything like you and I would logically assume it to be. When we stash money away to save for a goal – a new 38

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car, college tuition or retirement, for example – we open an account and deposit the cash in savings, or we may invest in securities that can be sold to someone else when the cash is needed. By law, this is not how the Social Security Trust Fund is managed. In fact, the trust fund doesn’t hold cash, or any other security that can be sold to the public to raise cash. According to the Social Security Trust Fund FAQ (which can be found at www.ssa.gov), as Social Security taxes are collected, the “tax income is deposited on a daily basis and is invested in ‘special-issue’ securities. The cash exchanged for the securities goes into the general fund of the Treasury and is indistinguishable from other cash in the general fund.” In other words, there is no separate account for Social Security. And since we’ve been

By Mark A. Keen,

CFP®

running budget deficits north of a trillion dollars for the past four years and accumulated more than $16 trillion in debt, the tax revenue collected for Social Security has long been spent. In reality, the specialissue securities that make up the Social Security Trust Fund are loans, or IOUs, that the Treasury must repay when Social Security needs to redeem the securities to fund its cashflow deficit each year. When the government spends more than a trillion dollars more than it receives each year, where does the money to repay these loans come from? As the Trustees Report states, the Treasury “must finance these payments through some combination of increased taxation, reductions in other government spending or additional borrowing from the public.” The unfortunate reality is that our inability to manage our nation’s finances has reduced one of the most successful programs into a budgetary problem. Unless changes are made to the Social Security system – either to increase revenue or to reduce expenses – (read between the lines: reform), Social Security will continue to put pressure on the budget. That is the situation in which we find ourselves. And whether the changes come in the form of a different COLA calculation,

MONEY MEMO NARFE offers an online retirement calculator and other financial planning tools. Find out more at www.narfe.org/ federalbenefits.

increased retirement age, increased taxes, meansbased testing or any other proposed action, they all translate to a cut in benefits. Even if the trust fund held cash or some other security the government didn’t have to buy back, the trust fund would be wiped out in a short 20 years, at which point Social Security revenue would support only 75 percent of projected benefits. There’s no ques-

tion that Social Security reform is necessary, but we need to act soon to ensure that those most vulnerable are protected. As stated in the Trustees Report: “If they [lawmakers] take action sooner rather than later, more options and more time will be available to phase in changes so that the public has adequate time to prepare. Earlier action will also help elected officials minimize adverse impacts on vulnerable populations, including lower-income workers and people already dependent on program benefits.” Mark A. Keen, CFP®, is president and owner of Bennett Financial Advisors, 10300 Eaton place, STe. 470, 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@tributaryadvisors.com.

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Fly into Las Vegas for one night. Then you will begin your tour and visit landmarks in NINE NATIONAL PARKS. Witness the giant Redwood trees in Kings Canyon and Sequoia National Parks. Then be amazed at the spectacular granite cliffs and waterfalls in Yosemite National Park. Visit majestic Lake Tahoe and Reno, stop in historic Virginia City, Winnemucca and Wendover, Nevada. In Utah tour the world’s largest man-made excavation – the Kennecott Copper Mine plus the Great Salt Lake! Next tour the unique formations at Arches’ National Park; and Canyonlands, with enchanting vistas carved by the Colorado and Green Rivers. Next visit Capitol Reef and drive through the Dixie National Forest to Bryce Canyon National Park. Then it’s the grandest of all National Parks, The Grand Canyon, for both a day and night. Finally, try your luck in exciting Las Vegas with an included day excursion to Zion National Park. Price per person, based on double occupancy. Alternate departure dates available in 2013. Seasonal rates may apply. Airfare is extra.

For reservations & details call 7 days a week:

1-800-736-7300

w w w. n a r f e . o r g

The Informed Citizen

Some Pay Dearly, Others Prefer Free

ike many in Washington, I spend other people’s money – yours. While many deep-pocketed lobbyists do this with great relish, I was taught to value “thrift.” Free or already paid for is always a good price. This column is about sources of valuable information that are available for free. Fee or Free Many Capitol Hill vendors transform publicly available, time-sensitive information and sell the value-added version to clients large and small. While these companies have discounts for nonprofits, including NARFE, they often make much of the information available for free as a tease or loss leader. This business model substitutes high subscription fees for diminishing advertising revenue. The competitors using this business model are Congressional Quarterly and National Journal. Begun to serve the newspaper industry, Congressional Quarterly (CQ) has morphed over time into an electronic publisher. However, CQ Weekly is available in many local libraries. CQ’s flagship book product, Politics in America, produced each Congress, is a vital desk reference for serious Congress watchers. CQ counts NARFE among its subscribers. CQ Roll Call now owns Capital Advantage, our vendor for the NARFE Legislative Action Center. To sign up for CQ’s excellent Daily Briefing, use http://corporate.cqrollcall. com/content/11/en/Register%20

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for%20Daily%20Briefing.html. National Journal (NJ) is another morphing publisher. Originally in print only, NJ is now primarily electronic. As a client of NJ’s membership model, NARFE’s Legislative Department is able legally to share NJ’s intellectual property. One NJ title that is a “must read” is the Almanac of American Politics, produced each Congress since 1972. To subscribe to one or more daily emails from NJ, use www.nationaljournal.com/ newsletters. Civic Impulse Conquers Redistricting Due to redistricting, many congressional districts have changed in ways great and small. Even if you know your congressional district number, and it is unchanged, I recommend using Civic Impulse’s “before” and “after” maps. Simply enter your address and click “Next” to see before (2011-2012) and after (2013-2014) redistricting maps. The site’s interactive maps show what has changed and are a crucial tool for organizers, especially NARFE congressional district liaisons. The address to

By Christopher Farrell, Legislative Representative

point your Web browser is www. my2012district.com/. Congress Merge Database of 113th Congress As with the information on the NARFE Legislative Action Center (http://capwiz. com/narfe/dbq/officials/), but easier to use and more detailed, congressmerge.com allows users to display an entire state delegation, their phone numbers and web contact addresses. More important, users can easily scroll down to display on a single screen the most important information for any member, including 1) extended contact information with all district offices; 2) political profile including committee assignments; 3) key office staff; and 4) personal bio. Particularly helpful to NARFE are Google Maps showing locations for each district office. The address to place in your web browser is www.congressmerge. com/onlinedb/index.htm. Add Your Email Address We want all members to place an email address in their NARFE record so they can get messages generated by our Global Email Messaging System, which we know internally as GEMS. Truly gems, these messages can help empower you as a member, advocate and citizen! Go to www. narfe.org or call 800-456-8410 to add your email address.

Alzheimer’s Update

Volunteers Needed For clinical trials

e can all feel justifiably proud of reaching the $10 million mark in raising funds for Alzheimer’s research. But in addition to making donations to

support Alzheimer’s research, there is another way that NARFE members can join the fight to find a cure for this disease – participating in a clinical trial. According to the Alzheimer’s Association, there are some 100 research studies on Alzheimer’s and related dementias under way, and volunteers are currently being recruited. Without these clinical trials, there can be no new treatments or cures. Participating in a clinical trial means that individuals can take action that not only helps themselves, but they also can make an important contribution for current and future Alzheimer’s patients and their families. The Alzheimer’s Association’s TrialMatch® is a free service that makes it easy for volunteers, with and without Alzheimer’s, to match up with clinical trials based on personal criteria (diagnosis, stage of disease) and location. TrialMatch can be accessed online at www. alz.org/trialmatch. You also can call the Alzheimer’s Association’s Contact Center at 800272-3900, 7 a.m.-8:30 p.m. CT, Monday through Friday. You will be asked a series of questions to create a profile, either online or over the phone. Based on the specified criteria, the

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Alzheimer’s Association will compare your profile to its comprehensive, up-to-date clinical trial database. If done online, a Contact Center specialist will contact you to provide trial result options and contact information for the trial site. Specialists will not recommend any particular trial but will help you identify trials that match your specific eligibility criteria. The Alzheimer’s Association’s Contact Center also offers general information on Alzheimer’s disease. By calling the center, you can: • Speak confidentially to master’s-level care consultants for decisionmaking support, crisis assistance and education on issues families face every day. • Learn about the signs of Alzheimer’s and related dementias. • Find out about local programs and services for individuals with dementia, caregivers, family and friends. • Get general information about medications and other treatment options, as well as legal, financial and care decisions. Another excellent resource is

By Jane rodgers NARFE-alzheimer’s Chair

ALZConnected, a new online social networking community started by the Alzheimer’s Association, designed specifically for people with Alzheimer’s disease and their caregivers. By using this resource, you will be able to connect and communicate with people who understand your unique challenges. You can pose questions about, as well as offer solutions to, dementia-related issues, create public and private groups organized around a dedicated topic, and contribute to message boards. As we begin working toward our new fundraising goal of $11 million by the end of 2014, I am pleased to pass along the congratulations of Harry Johns, president and CEO of the Alzheimer’s Association, on achieving our $10 million goal for Alzheimer’s research. “For more than 25 years, NARFE has demonstrated steadfast commitment to the mission of the Alzheimer’s Association,” Johns said. “We appreciate their unwavering dedication to the Alzheimer’s Association research program and our efforts to end this disease.” So keep your donations coming. NARFE joins the Alzheimer’s Association in working toward “a world without Alzheimer’s.” Jane Rodgers is chair of the NARFE-Alzheimer’s National Committee. email: ajrodgers@tds.net.

The Invention of the Year is Great News for your Ears Perfect Choice HD™ is easy to use, hard to see and doesn't cost a fortune… it’s like reading glasses for your ears™!

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New Personal Sound Amplification Product is an affordable way to “turn up the volume!” doctor who leads a renowned hearing institute, there is Perfect Choice HD. It’s a PSAP designed to accurately amplify sounds and deliver them to your ear. Because we’ve developed an efficient production process, we can make a great product at an affordable price. The unit has been designed to have an easily accessible battery, but it is small and lightweight enough to hide behind your ear… only you’ll know you have it on.

Perfect Choice HD is NOT a hearing aid. Hearing aids can only be sold by an audiologist or a licensed hearing instrument Now we’ve made Perfect Choice HD better than ever! specialist following hearing tests and Original Design New Perfect Choice HD fitting appointments. Better – It Reduces Sound Quality Good Once they have you Feedback tested and fitted, you up to 30dB 35dB – 15% Louder could pay as much as Volume $5000 for the product. 3 to choose from for Hearing Tubes

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different situations 2 to choose from for better fit and sound

Reading glasses for One your ears. While some Ear Buds people need hearing One-on-One No Yes – if needed aids, many just need set up instructions the extra boost in It’s comfortable and won’t make you volume that a PSAP gives them. feel like you have something stuck in Now, thanks to the efforts of the your ear. It provides high quality Are you or audio so sounds and conversations will be easier to a loved one frustrated hear and understand. in these situations? • Restaurants • Dinner parties • Outdoor conversations • Lectures • Sermons • Meetings …and other times where you need to turn up the volume

Try it for yourself with our exclusive home trial. We want you to be happy with Perfect Choice HD, so we are offering to let you try it for yourself. If you are not totally satisfied with this product, simply return it within 60 days for a refund of the full

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For the Record

Thrift Savings Plan Monthly Returns

Stock markets start the year with a bang

2012

’13

2012

by Tracey Ray

G FUND

F FUND

C FUND

S FUND

I FUND

FEBRUARY

0.12%

0.05%

4.34%

3.99%

5.14%

MARCH

0.14%

(0.61%)

3.30%

2.30%

0.13%

APRIL

0.15%

1.12%

(0.62%)

(0.71%)

(1.87%)

MAY

0.14%

0.91%

(5.99%)

(6.91%)

(11.40%)

JUNE

0.11%

0.05%

4.13%

3.25%

7.08%

JULY

0.12%

1.38%

1.40%

(0.62%)

0.56%

AUGUST

0.11%

0.07%

2.25%

3.57%

3.29%

SEPTEMBER

0.10%

0.15%

2.57%

2.51%

2.96%

OCTOBER

0.12%

0.20%

(1.86%)

(1.31%)

0.85%

NOVEMBER

0.11%

0.16%

0.57%

1.53%

2.41%

DECEMBER

0.12%

(0.13%)

0.91%

2.69%

4.02%

JANUARY

0.13%

(0.56%)

5.18%

6.96%

4.45%

YTD

0.13%

(0.56%)

5.18%

6.96%

4.45%

LAST 12 MO

1.46%

2.80%

16.83%

17.87%

17.60%

L INCOME

L 2020

L 2030

L 2040

L 2050

FEBRUARY

0.98%

2.53%

3.10%

3.54%

3.99%

MARCH

0.54%

1.23%

1.49%

1.68%

1.86%

APRIL

0.01%

(0.38%)

(0.52%)

(0.63%)

(0.78%)

MAY

(1.38%)

(4.20%)

(5.23%)

(6.00%)

(6.85%)

JUNE

1.04%

2.72%

3.32%

3.77%

4.27%

JULY

0.37%

0.63%

0.71%

0.75%

0.78%

AUGUST

0.63%

1.57%

1.94%

2.23%

2.51%

SEPTEMBER

—TRACEY RAY is chief investment officer of the Thrift Savings Plan

Countdown to COLA

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.3 percent in December. To calculate the amount of the 2014 cost-of-living adjustment (COLA), the indices of July, August and September 2013 will be averaged and compared with the 2012 thirdquarter average of 226.936. That percentage increase, if any, determines the COLA. The December index of 225.889 is down 0.46 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. December’s index is 1.7 percent higher than the December 2011 base index of 222.166. (See story, p. 11, on 2013 COLA for FECA recipients.) 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.

0.62%

1.52%

1.87%

2.12%

2.38%

(0.11%)

(0.45%)

(0.60%)

(0.71%)

(0.80%)

NOVEMBER

0.34%

0.77%

0.93%

1.06%

1.19%

DECEMBER

O.47%

1.19%

1.48%

1.69%

1.93%

JANUARY

1.10%

2.83%

3.56%

4.11%

4.63%

YTD

1.10%

2.83%

3.56%

4.11%

4.63%

October 2012

LAST 12 MO

4.70%

10.21%

12.39%

14.01%

15.59%

OCTOBER

’13

Despite lingering uncertainty over hitting the debt ceiling and impending budget cuts, stock markets started the year with a bang. The C and S Funds had their best months since October 2011 and January 2012, respectively. Fueling the rise, outside of the Thrift Savings Plan, investors added $78 billion to equity mutual funds in January, the largest monthly total since 2000. The F Fund declined for the second month in a row as investors sold bonds to buy stocks.

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 on () are negative. Source: tsp.gov.

Monthly % Change

% Change from 226.936

227.974

-0.1

0.45

November

226.595

-0.6

-0.15

December

225.889

-0.3

-0.46

Month

January 2013 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.) 44

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May June July August September

CPI-W

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: $10 Million Fund National Committee Chair Card Number: Jane Rodgers, P.O. Box 234 Expiration Date: (mm)/ (yy) Wadesville, IN 47638-0234 *Total as of December 31, 2012 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) Email: ajrodgers@tds.net

$10,109,429* 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

NARFE exploring adding high tech to convention

Doing a good Turn foR NARFE

ARFE offers members a way to give to the Association beyond the norm through its Silver Circle program. Donors of $25 or more are listed in narfe magazine and receive a Silver Circle pin. Donors of $1,000 or more have their names engraved on the Wall of Fame (above) at NARFE Headquarters. Donors from November 16, 2012-January 15 are listed here with their chapter numbers. Two qualify for the Wall of Fame with $1,000 contributions: Mildred E. Harrison of Chapter 1596 in California and Frank C. Impinna of Chapter 81 in Colorado.

Other donors are: Dianna D. Dimick, Ch. 1400, AZ; Jack L. Webb, Ch. 1789, AZ; Louis J. Jurus, Ch. 4, CA; Charles R. Bennett, Ch. 1718, CA; Paul H. Blanchette, Ch. 154, CT; Edward D. Rezin, eChapter 2363; Donald Stewart, Ch. 1405, FL; Jeanice A. Cress, Ch. 2077, KS; Lela Williams, Ch. 1050, KY; Betteanne M. Priest and Edward E. Priest, Ch. 1734, MD; Harvey Somers, Ch. 304, MI; Jay M. Schecter, Ch. 195, ND; Richard A. Clerici and Anne M. Leone, Ch. 501, NJ; Daniel Jenner, Ch. 2320, OK; Harriett Vandegrift, Ch. 180, VA; and Laura Church, Ch. 1549, VA. .

Federations Announce Convention schedules

DC; Florida, 5/7-9, Altamonte Springs; Georgia, 5/2-4, Tucker; Hawaii, 4/4-5, Lihue; Idaho, 5/15-17, Pocatello; Illinois, 5/8-10, Bloomington; Indiana, 4/23-24, Lafayette; Iowa, 5/15-17, Tama; Kansas, 4/28-30, Overland Park; Kentucky, 4/911, Bowling Green; Louisiana, 4/10-12, Monroe; Maryland, 4/29-5/1, Ocean City; Massachusetts, 5/2-3, Devens; Michigan, 6/4-7, Detroit; Minnesota, 5/21-23, St. Cloud; Mississippi, 4/5-7, Louisville; Missouri, 4/17-19, Poplar Bluff; Nebraska, 5/5-7, Grand Island; Nevada, 5/14-16, Las Vegas; New Hampshire, 5/15, Rochester; New Jer-

Forty-five NARFE federations will hold conventions during the spring and summer. Nine others, on biennial schedules, will have theirs in 2014. 2013 CONVENTIONS: Alabama, 4/1618, Prattville; Alaska, 4/19-21, Juneau; Arizona, 5/5-7, Phoenix; Arkansas, 5/16-17, Heber Springs; California, 5/34, Sacramento; Colorado, 5/2-4, Colorado Springs; Delaware, 6/5, Dover; District of Columbia, 4/13, Washington, 46

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NARFE is exploring the possibility of providing streaming video access, via computer, to future NARFE National Conventions. National Vice President Paul H. Carew recently sent an email message to members asking if they would participate in a National Convention if it were possible to do so using the Internet. Participants would enroll and be charged a fee for this access. Carew outlined two scenarios, one in which video participants would merely watch the proceedings, and the other in which official delegates and voting representatives also could cast ballots remotely. Any change would not take effect until the 2016 biennial convention.

Applications for the NARFE Scholarship Program are available online at www.narfe.org. Log in, then click on â&#x20AC;&#x153;Special Programsâ&#x20AC;? at the left of the next screen. Deadline for the scholarship competition is April 26.

For chapter photos, see our Out and About Photo Gallery at www.narfe.org/narfemagazine.

sey, 4/8-10, Atlantic City; New Mexico, 4/26-27, Rio Rancho; North Carolina, 5/7-9, Havelock; North Dakota, 5/1-3, Valley City; Ohio, 4/26-27, Mansfield; Oklahoma, 5/3-4, Oklahoma City; Oregon, 5/5-7, Newport; Puerto Rico/ VI, 10/19, San Juan; Rhode Island, 5/29, East Greenwich; South Carolina, 4/1012, Greenville; South Dakota, 5/13-15, Deadwood; Tennessee, 4/15-16, Chattanooga; Texas, 4/25-28, Amarillo; Utah, 5/9-10, St. George; Vermont, 5/16, Berlin; Virginia, 4/22-24, Midlothian; West Virginia, 5/20-22, Barboursville; Wisconsin, 5/6-8, Wisconsin Rapids.

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.

Who Should Join?

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 ■ YES. I want to join NARFE. ■ Mr. ■ Mrs. ■ Miss ■ Ms. Full Name ________________________________________ Street Address ____________________________________

I am a (check all that apply) ■ ■ ■ ■ ■

Active Federal Employee Active Federal Employee Spouse Annuitant Annuitant Spouse Survivor Annuitant

Apt./Unit ________________________________________

■ Please enroll my spouse

City _______________________ State _____ ZIP ________

Spouse’s Full Name ________________________________

Phone (__________) _______________________________

Spouse’s Email ____________________________________

Email____________________________________________ Date of Birth _________ /_________ / _______________ dd

yyyy

Choose Your Membership Type Local Chapter Close-to-Home Membership — $45 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 grassroots lobbying efforts. $45 first-year dues X __________ = __________ Per Person # Enrolling Total Dues (First-year dues include national and chapter dues.)

Spouse’s Date of Birth ______/______/_____________ dd

yyyy

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.

PAYMENT OPTIONS ■ Check, Money Order or Bill Pay (Payable to NARFE) ■ Bill me (NARFE membership will start when payment is received.) ■ Charge my: ■ MasterCard ■ VISA ■ Discover ■ American Express Card No. _____________________________________ Expiration Date _________ /_________ mm

yyyy

Chapter Affiliation (if known, otherwise enroll me in the chapter closest to my ZIP code). Chapter #___ ___ ___ ___

Name on Card _________________________________

Signature _____________________________________

eNARFE Chapter Online Membership — $40

Date _________________________________________

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. $40 first-year dues X __________ = __________ Per Person # Enrolling Total Dues

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

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 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 ■ 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)

■ Mr. ■ Mrs. ■ Miss ■ Ms. Full Name _______________________________________

NARFE MEMBERSHIP INFORMATION

Street Address ___________________________________

NARFE Membership ID ____________________________________

Apt./Unit________________________________________ City _________________________ State _____ ZIP _____ Phone (__________) ______________________________ Email ___________________________________________ Date of Birth _________ /_________ / ____________________ dd

yyyy

NARFE Chapter Number____________________________________

■ YES. I Also Authorize My (NARFE Member) Spouse’s Dues To Be 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)

NOW FOR ALL FEDERAL EMPLOYEES. NARFE members can save hundreds to thousands on hearing aids purchased through TruHearing.

Over 90 models + more than 450 styles. ENROLL IN MEMBERPLUS FOR ONLY $108

(877) 379-4522 Use Enrollment Code:

TH2N-ARFE

COST EXAMPLE:

RESOUND ALERA 9 WIRELESS

RETAIL PRICE (per aid) MEMBERPLUS PRICE (per aid) MEMBERPLUS MEMBERSHIP FEE YOU SAVE

$2,900 $1,795 $ 108 $ 997

ALL APPOINTMENTS MUST BE SCHEDULED THROUGH TRUHEARING! THIS IS NOT INSURANCE. TruHearing provides discounts through contracted health plans and enrolled employer groups for hearing aid sales and professional services at selected hearing care providers. Professional services for fitting, programming and three adjustment visits, are included in the price of the aids. The customer is obligated to pay for testing, and all other post-fitting hearing care services, but will receive a discount from those health care providers who have contracted with TruHearing. FOR FL, OK , NV RESIDENTS: The MemberPlus member (“Member”) may cancel membership within 30 days, and receive a full refund of fees. The Member must return hearing aids within 45 days of purchase to receive a full refund of the purchase price. In Florida and Nevada, the DMPO does not make payments directly to providers. As with all Members nationwide, fitting fees, programming fees and first three visits are included in the price of the aids. See full terms and conditions on www.truhearingmemberplus.com.

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, e-mail jparish@narfepremierfcu.org or visit the website.

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 automobile 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.

Bank of America offers the officially approved credit card program for NARFE, featuring the Platinum Plus® MasterCard® with WorldPoints. This is the only credit card that helps support NARFE every time you use it to make a purchase–at no additional cost to you. When calling, use NARFE’s full name, not NARFE.

insurance

NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed and administered by Marsh U.S. Consumer, a service of Seabury & Smith, Inc., exclusively for NARFE members: Senior Whole Life, Term Life, Medicare Supplements, Hospital Income Plan, Short Term Recovery 50

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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®.

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 worldwide. Book online and save on your next vacation stay.

Credit Card

Bank of America 866-438-6262

Wyndham Hotel Group 877-670-7088

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.

car rentals

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

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

Avis The employees/owners of Avis offer guaranteed low rates and quality services to members of NARFE. Call 800-331-1441 and mention ID# A991900.

narfe merchandise

NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.com Official NARFE name badges, customizable logo products and plaques.

emergency services

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!

preventive health screenings, will conduct the following screenings using state-of-the-art ultrasound technology in your neighborhood: 1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease. You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share these test results with your doctor. All four screenings cost just $135. To schedule an appointment, please call 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.

hearing benefits Moving services

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

Bekins Van Lines 800-248-4810 www. narfe@bekins.com All NARFE members will receive discounted pricing for all interstate shipments. Discount will apply to packing and moving services and valuation protection. All intrastate shipments, local moves and international moves will be competitive based on your geographical location. Please mention you are a NARFE member and ask for Traci.

TruHearing 877-360-2442 Two discount programs to choose from: ValueAdd® or MemberPlus®. Similar to a warehouse membership, MemberPlus saves hundreds more for a $108 yearly membership. MemberPlus also includes: • 45-day, money-back guarantee on membership fee and all purchases • 48 batteries, 3-year warranty, and one-time loss and damage for 3 years (small manufacturer deductible applies) on each purchased hearing aid • Guest membership for up to four extended family members (siblings, parents, etc.) for only $79 each • Combine with an existing health plan hearing benefit to maximize savings.

education

Ivy Bridge College 877-615-9246 http://ivybridge.tiffin.edu/ narfe Want to earn your associate’s degree before you transfer to a four-year school? Ivy Bridge College offers a variety of degree programs that will help put you on the right track. No matter which program you choose, an education with Ivy Bridge will provide you with a solid foundation for a rewarding future. NARFE members and their families can enjoy an exclusive 5 percent savings on tuition at Ivy Bridge, a unique online institution that provides a highly supported pathway to a bachelor’s degree. To learn more, call or visit the website.

Visit TruHearingMemberPlus.com for more information, or call 877360-2442, Mon-Fri, 9 a.m.-9 p.m. ET.

NOT A MEMBER? health screening

GO ONLINE: It’s easy to join online at www.narfe.org. Click “Join NARFE.”

Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE

TURN TO PAGE 47: Fill out the Membership Application and mail it to NARFE to receive all the perks of being a NARFE member.

Life Line Screening, America’s leading provider of community-based

Call Toll-Free 800-627-3394.

w w w. n a r f e . o r g

The Way We Worked

combating cancer, one Cell at a time In this 1970s photo, laboratory technician Betty Joe Fowlks operates a cytology cell separator to study separated cancer cells. Fowlks is working in Dr. Chester Hermanâ&#x20AC;&#x2122;s laboratory at the National Cancer Institute Laboratory of Pathology in Bethesda, MD. Photo courtesy of the Office of History, National Institutes of Health; Barbara Faye Harkins, MLIS, archivist/librarian, Office of History, National Institutes of Health; in collaboration with the Society for History in the Federal Government (SHFG), http://shfg.org/ shfg/. Bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. 52

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Are you a National Cancer Institute employee or retiree? Tell us about your service, and we will post it on the NARFE website. To tell your story, send an email message to communications@narfe.org. Stories may be viewed at www.narfe.org/ narfemagazine.

o act N tr on C

Finally, a cell phone NEW that’s... a phone.

ng Sou Bett er nd er Ba a tte nd ry Li fe

Introducing the all-new Jitterbug® Plus. We’ve made it even better… without making it harder to use. All my friends have new cell phones. They carry them around with them all day, like mini computers, with little tiny keyboards and hundreds of programs which are supposed to make their life easier. Trouble is… my friends can’t use them. The keypads are too small, the displays are hard to see and the phones are so complicated that my friends end up borrowing my Jitterbug when they need to make a call. I don’t mind… I just got a new phone too… the new Jitterbug Plus. Now I have all the things I loved about my Jitterbug phone along with some great new features that make it even better!

Monthly Rate

100

DoubleTime 200

$19.99

$14.99 24/7

24/7

911 Access

FREE

No add’l charge

FREE

YES

30 days

Voice Dial Nationwide Coverage Friendly Return Policy

More minute plans available. Ask your Jitterbug expert for details.

the problem with prepaid phones. Since there is no contract to sign, you are not locked in for years at a time and won’t be subject to early termination fees. Now, when you sign up for our Basic 19 plan, you’ll double your monthly minutes for the same price. The U.S.-based customer service is knowledgeable and helpful and the phone gets service virtually anywhere in the continental U.S. Above all, you’ll get one-touch access to a friendly, and helpful GreatCall operator. They can look up numbers, and even dial them for you! They are always there to help you when you need them.

Introducing

DoubleTime! Double your monthly minutes for life with activation by 03/31/13

Call now and get a FREE Car Charger – a $24.99 value. Try the Jitterbug Plus for yourself for 30 days and if you don’t love it, just return it for a refund1 of the product purchase price. Call now – helpful Jitterbug experts are ready to answer your questions.

Available in Silver and Red.

The rate plans are simple too. Why pay for minutes you’ll never use? There are a variety of affordable plans. Plus, you don’t have to worry about finding yourself stuck with no minutes– that’s

Order now and receive a FREE Car Charger for your Jitterbug – a $24.99 value. Call now!

Operator Assistance

Long Distance Calls

GreatCall® created the Jitterbug with one thing in mind – to offer people a cell phone that’s easy to see and hear, simple to use and affordable. Now, they’ve made the cell phone experience even better with the Jitterbug Plus. It features a lightweight, comfortable design with a backlit keypad and big, legible numbers. There is even a dial tone so you know the phone is ready to use. You can also increase the volume with one touch and the speaker’s been improved so you get great audio quality and can hear every word. The battery has been improved too– it’s one of the longest lasting

on the market– so you won’t have to charge it as often. The phone comes to you with your account already set up and is easy to activate.

Basic 19

Basic 14 Monthly Minutes

Jitterbug Plus Cell Phone Ask how you can get DoubleTime for Life! Please mention promotional code 46347.

1-888-812-5809

We proudly accept the following credit cards.

47567

www.jitterbugdirect.com

IMPORTANT CONSUMER INFORMATION: DoubleTime offer valid on Basic 19 Plan and applies to new GreatCall customers only. Offer ends 3/31/13. Offer valid until plan is changed or cancelled. All GreatCall phones require a one-time set up fee of $35. Coverage and service are not available everywhere. You will not be able to make 9-1-1 calls when cellular service is not available. Rate plans do not include government taxes or assessment surcharges and are subject to change. No roaming or long distance charges for domestic calls within the U.S. There are no additional fees to call GreatCall’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. 1 We will refund the full price of the GreatCall phone if it is returned within 30 days of purchase in like-new condition. We will also refund your first monthly service charge if you have less than 30 minutes of usage. If you have more than 30 minutes of usage, a per minute charge of 35 cents will apply for each minute over 30 minutes. The activation fee and shipping charges are not refundable. Jitterbug and GreatCall are registered trademarks of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics Co., Ltd. Copyright ©2013 Samsung Telecommunications America, LLC. Copyright ©2013 GreatCall, Inc. Copyright ©2013 by firstSTREET for Boomers and Beyond, Inc. All rights reserved.

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4 pairs for 55.95

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