May 2013 NARFE Magazine by NARFE

MAy

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P.30

How health care reform Is affecting the FEHBP

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COVER STORY

telework The former workplace privilege Is becoming a workplace presumption

P.24

Activists Take NARFE’s message to capitol Hill Volume 89 • Number 05

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WashingTon Watch

Congress Confirms Sequestration Funding; Furloughs Set to Begin

Budgets Differ on Approach to Feds

NARFE Bill Tracker

Senate Federal Workforce Subcommittee Members Named

Gear Up Now for August’s “Grass-Roots Advocacy Month”

Columns

Cover Story telework. Some agencies have embraced telework, but not everyone is on board. Management reluctance and IT issues are among impediments to work-from-home opportunities.

From the President

Managing Money

The Informed Citizen

DEPARTMENTS

Health Care Reform. Take a look at how the Affordable Care Act has affected the Federal Employees Health Benefits Program.

Questions & Answers

For the Record: TSP Investments, COLA Chart

NARFE News

The Way We Worked

special section MAY

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On the Web P.30

Legislative Training Conference Report

HOW HEALTH CARE REFORM IS AFFECTING THE FEHBP

visit us online at:

www.narfe.org P.36

like us on facebook:

NARFE National Headquarters follow us on twitter:

@narfehq

COVER STORY

TELEWORK The Former Workplace

ACTIVISTS TAKE NARFE’S MESSAGE TO CAPITOL HILL

Privilege Is Becoming a Workplace Presumption

P.24

ON THE C OVER

Illustration by Bill Pragluski, Critical Stages, LLC

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

MAY 2013 | Volume 89 | Number 05

Editor Margaret M. Carter Assistant Editor Donna J. St. John Editorial Administrator Toni Vallario Graphic Design Charlene Gridley 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 800-424-8567 and ask for the Reference Section. The Association, since July 1970, has been classified by the IRS as a tax exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

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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From the President

Every member an activist

n the past several months, Congress has landed some blows to the federal community. Federal employees have had

their pay frozen for the third year in a row. And, thanks to sequestration, hundreds

of thousands of them face furloughs. To say that we are fed up with being the punching bag for a dysfunctional legislature is an understatement. But another battle over the debt limit looms this summer, bringing with it pressure to arrive at a big budget deal. Federal employees and retirees will be targets again. To prevail in this fight, we desperately need more allies. At the recent NARFE Legislative Training Conference, Rep. Donna Edwards, who represents a district in a Maryland suburb of

Washington, DC, told us that too many of her colleagues believe that the interests of federal employees and retirees are the concern of just a few legislators with districts around the Beltway. “We have to change their minds about that,” Edwards insisted. This is where you come in. Although we had more than 250 of NARFE’s most fervent legislative activists at the conference, that is hardly enough. We need every NARFE member to become an activist. Please read about the Legislative Conference in the Special Section in this issue, then do what you can to enlist your members of Congress on the side of federal employees and retirees. Tell them about your service. And remind them that 85 percent of federal employees work outside the Washington, DC, area. I also recommend taking a look at our cover story on telework. As a former air traffic controller, I know that not every job in the federal government can be done off-site, but many can. See how agencies are implementing the policy. Finally, we all realize that our health insurance is one of the greatest advantages of a federal career. See our story on the Affordable Care Act and how NARFE was able to protect the Federal Employees Health Benefits Program from harm.

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

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Washington Watch

Congress Confirms Sequestration Funding; Furloughs Set to begin

fter assuring the public for more than a year and a half that sequestration – deep, across-the-board budget cuts – was too harsh a deficit-reduction remedy to

ever take effect, Congress passed, and the president signed into law, an appropriations bill that does just that. H.R. 933 provides sequestration-level funding to keep the government running for the remainder of fiscal year 2013, which ends September 30. As a result, a large number of federal employees will be furloughed between April and September, for upwards of 22 days. This amounts to a 20 percent pay cut during that time period. To add insult to injury, the bill also extended the federal pay freeze another year. NARFE President Joseph A. Beaudoin responded: “By extending the federal employee pay freeze for a third year, the House and Senate continue to use federal employees to fix a problem they didn’t create. Congress seems unable and unwilling to come up with anything more than the same short-sighted ploys that have dangerous realworld consequences for federal 6

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workers and the services on which Americans depend.” The framework of the final bill was brokered between Sens. Barbara A. Mikulski, D-MD, and Richard C. Shelby, R-AL, the chair and ranking member, respectively, of the Senate Appropriations Committee, in conjunction with House Appropriations Committee Chair Harold Rogers, R-KY. Mikulski was unable to protect the federal workforce from a con-

tinuation of the pay freeze or the furloughs made necessary by the lowered appropriations levels. Although most of the federal workforce was left unprotected, some senators were able to force amendments to protect particular workers from furloughs. Sens. Mark Pryor, D-AR, and Roy Blunt, R-MO, were able to shift funds from a school breakfast grant program to prevent furloughs of food inspectors, which would have disrupted operations of large meatpacking plants in their states. The bill also reiterates congressional support for six-day mail delivery by the U.S. Postal Service. H.R. 933 passed the Senate on March 20 by a vote of 73-26, and passed the House on March 21 by a vote of 318-109. It was signed into law on March 26. —By John Hatton, Deputy Legislative Director

CPI COLA CALCULATOR AVAILABLE A calculator is available at www.narfe.org to help federal employees, retirees and Social Security recipients find out how much they could lose in benefits if the method for determining cost-of-living adjustments is changed to the Chained CPI.

budgets differ on approach to feds

he House and Senate have both passed versions of a fiscal year (FY) 2014 budget. A conference committee, made up of members of both chambers, should meet to resolve the differences. The House plan, H. Con. Res. 25, offered by House Budget Committee Chair Paul D. Ryan, R-WI, calls for a reduction in federal employee benefits of $181 billion over 10 years. Over the last three years, federal employees have already contributed more than $114 billion to deficit reduction. The House budget would require current federal employees to pay more toward their retirement. This new burden would yield no additional retirement benefits to future retirees. The budget proposes a 10 percent reduction in the size of the federal workforce by replacing only one out of three federal employees who leave federal service. The Senate passed a competing budget plan, S. Con. Res. 8, offered by Senate Budget Committee Chair Patty Murray, D-WA. The measure includes none of the proposed cuts for federal employees embraced by the House budget resolution. The Senate budget also proposes to eliminate the sequester cuts that went into effect on March 1. It also calls for an additional $975 billion in revenue by closing loopholes and eliminating tax incentives for the wealthy and large

corporations, and $975 billion in spending cuts. Overall, the Senate plan proposes to reduce the federal deficit over the next 10 years, though not eliminate it, by reducing spending, increasing revenues and including $100 billion in infrastructure investments to spur economic growth. The House plan, by contrast, would achieve a balanced federal budget in 10 years through spending reductions alone, and would include neither net revenue increases nor the types of infrastructure investments envisioned by the Senate plan. Traditionally, differences in the plans are resolved in a conference committee between the House and Senate, but this is unlikely this year. The conference report on the budget resolution then would become the guidepost and enforcement mechanism for spending and revenue decisions for FY 2014, beginning on October 1, 2013. That process includes allocation of resources to the House and Senate appropriations committees to divvy up among their 12 subcommittees to fund the various programs, projects and activities of the federal government (including the salaries and expenses of active federal employees).

advocacy action Don’t let up the pressure as “Grand Bargain” takes shape. Because of continuing threats to federal benefits, it is essential that NARFE members not let up on their advocacy efforts. While President Obama has called for a long-term budget “Grand Bargain” by July, contacting your members of Congress now ensures that they know NARFE is watching. For help, check out the revamped “Protect America’s Heartbeat” (PAH) Toolkit. In addition to talking points and other advocacy materials, the Toolkit includes new numbers in “The Federal Family” table, showing civilian annuitants, employees and postal employees by state.

MYTH vs. REALITY Myth: Most federal employees work in Washington, DC.

Reality: More than 85 percent of federal employees work outside the Washington, DC, metropolitan area.

—By Alan Lopatin, Legislative Counsel w w w. n a r f e . o r g

Washington Watch

narfe bill tracker The NARFE bill TRACKER is your monthly guide to the congressional legislation that NARFE is keeping an eye on. Check back each issue for updates. ISSUE

Bill Number / Name / What Bill Would Do Sponsor H.R. 26: Deferred Benefits Adjustment Act of 2013 / Rep. Nydia M. Velรกzquez, D-NY

Amends federal civil Referred to Committee on service law to provide Oversight and Government for the indexation of de- Reform ferred annuities, including survivor annuities, under the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) and for individuals becoming subject to FERS by election. Terminates the entitlement of a survivor who remarries before age 55 (currently, who remarries at any age) to an annuity based on the service of a deferred annuitant who dies before establishing a valid claim for a CSRS annuity.

H.R. 273: To eliminate the 2013 statutory pay adjustment for federal employees / Rep. Ron DeSantis, R-FL

Extends the federal employee pay freeze for the rest of 2013, which would be the third year of the pay freeze.

Passed the House on 2/15/13 Included in H.R. 933 Signed into law on 3/26/13

H.R. 517: To provide that four of the 12 weeks of parental leave made available to a federal employee shall be paid leave / Rep. Carolyn B. Maloney, D-NY

Allows federal employees to substitute any available paid leave for any leave without pay available for either the birth of a child or placement of a child with the employee for either adoption or foster care. Makes available for any of the 12 weeks of leave an employee is entitled to for such purposes: four administrative weeks of paid parental leave in connection with the birth or placement involved; and any accumulated annual or sick leave.

Referred to Committee on Oversight and Government Reform

DEFERRED ANNUITIES

federal pay

Paid Parental Leave

Latest Congressional Action/s

(continued 0n p. 10) 8

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Washington Watch

narfe bill tracker (continued from p. 8) Bill Number / Name / What Bill Would Do Sponsor

ISSUE

Retirement Calculations/ Contributions

federal pay

Latest Congressional Action/s

H. Con. Res. 25: Fiscal year 2014 Budget Resolution / Rep. Paul D. Ryan, R-WI

Among other things, reduces the federal workforce by 10 percent through attrition and increases the amount that federal employees contribute toward their retirement (but does not specify by how much).

H.R. 933: Fiscal Year 2013 Continuing Appropriations Act / Rep. Harold Rogers, R-KY

Funds the federal govSigned into law on 3/26/13 ernment for the remain- (P.L. 113-006) der of fiscal year 2013 See story, p. 6. (through September 30, 2013) at sequestration levels. Freezes federal pay for a third year (2013).

Passed the House on 3/21/13. See story, p. 7.

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Washington Watch

Senate Federal Workforce Subcommittee Members named

he Senate Committee on Homeland Security and Governmental Affairs, which has jurisdiction over federal employee and retiree issues, announced the

members of its subcommittees for the 113th Congress. The new Subcommittee on the Efficiency and Effectiveness of Federal Programs and the Federal Workforce will have jurisdiction over legislation affecting the federal workforce. In previous Congresses, the subcommittee had a different name: the Subcommittee on Oversight 2013-14_PAC_Coupon:2013 Coupon 3/26/13

of Government Management, the Federal Workforce and the District of Columbia, and, accordingly, some difference in subjectmatter jurisdiction. Sen. Jon Tester, D-MT, will chair the new subcommittee, and Sen. Rob Portman, R-OH, will be itsPM ranking In these 3:42 Page member. 1

positions, they control the subcommitteeâ&#x20AC;&#x2122;s majority (Democrat) and minority (Republican) staff, respectively. The other committee members are: Democratic Sens. Mark Pryor, D-AR; Claire McCaskill, D-MO; Mark Begich, D-AK; Tammy Baldwin, D-WI; and Heidi Heitkamp, D-ND; and Republican Sens. Ron Johnson, R-WI; Rand Paul, R-KY; and Michael B. Enzi, R-WY. â&#x20AC;&#x201D;By John Hatton, Deputy Legislative Director

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Washington Watch

“I saved thousands on my hearing aids. Then he did, too.” Now it’s your turn to save *. NARFE members can save hundreds to thousands on hearing aids purchased through TruHearing.

Call TruHearing today: (877) 379- 4522 ALL APPOINTMENTS MUST BE SCHEDULED THROUGH TRUHEARING. FOR A FULL LIST OF PRICING VISIT OUR WEBSITE AT TRUHEARING.COM. *Members can save hundred's to thousands. Savings depend on model(s) chosen. Visit our website at www.truhearing.com for full pricing and product comparisons. 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

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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 FLORIDA, OKLAHOMA, AND NEVADA RESIDENTS: The Member may cancel membership within 30 days, and receive a full refund of fees. The Member must return hearing aids within 30 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 adjustment visits are included in the price of the aids. The MemberPlus program is a non-fee program to all Washington State residents. or There is no fee for MemberPlus membership for Washington State residents. ALL CONTENT ©20134 TRUHEARING, INC. ALL RIGHTS RESERVED.

Gear up now for August’s ‘Grass-Roots Advocacy Month’

Life is not a rehearsal

ARFE members should begin planning now for August’s “Grass-Roots Advocacy Month.” While August may seem far off, members of Congress are

already preparing their schedules. The August 2-September 9 congressional recess is a prime opportunity to meet with members of Congress.

Contact your representative and senators now to get NARFE on their August calendars. There are two ways to do this: Invite them to speak at a chapter event or request a meeting in the district office. A step-by-step guide on hosting an elected official at your chapter meeting is included in the “Protect America’s Heartbeat” (PAH) Toolkit, available at www.narfe.org/ heartbeat/toolkit.cfm. You also can contact the NARFE Legislative Department for a copy of the Toolkit. Legislative Resources • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE Legislative Department staff, distributed via email and available by phone (toll-free) at 877-217-8234 and online at www.narfe.org. • Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.

The Legislative Department staff is available to help you plan your event, contact congressional offices and provide tips. If there is more than one chapter located in a congressional district, or if you are inviting a senator, you will improve your chances of getting a “yes” to your invitation by joining forces with other chapters. If your chapter does not meet during August, you might want to request a “sit-down” with your member of Congress. This will provide an opportunity for the chapter to participate in “Grass-Roots Advocacy Month” without having to convene a special meeting. In the coming months, additional resources will be featured in narfe magazine to help members and chapters make “Grass-Roots Advocacy Month” a success. —By Sarah Holstine, Grass-Roots Program Manager

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Questions & Answers

The following Questions & Answers were compiled by NARFE’s Federal Benefits Service Department staff. NARFE does not provide legal, financial planning or tax advice or assistance.

active Employees Effect of Furloughs on Annuities

In a recent NARFE NewsWatch, someone was quoted as saying that there might be a lot of government retirements because the sequester will affect annuities. I was told that you get your high-three years of salary to calculate your annuity and not your last three years of employment. So, if I made 20 percent less at the end of December 2013, and I were to retire in January 2014, as I see it, my high-three would be 2010, 2011 and 2012. Will the sequester affect the annuity in any way?

It is our understanding that furloughs have the same effect on retirement computations as leave without pay. Your basic pay is used – not what you actually receive – when computing the high-three average salary. As with leave without pay, if you have six months or more of furloughed days in a calendar year, you would only receive six months of service credit in your annuity computation. The Office of Personnel Management (OPM) 16

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has stated the following (in part): The high-three average salary used to compute Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) annuities is the largest annual rate resulting from averaging an employee’s rates of basic pay in effect over any period of three consecutive years of creditable civilian service, with each rate weighted by the length of time it was in effect. If a period of nonpay status (such as a furlough)

that is creditable for retirement occurs during the three-year period used to compute the high-three average salary, the loss of actual pay during that nonpay status period generally would have no effect on the high-three computation. The basic pay rate in effect during that nonpay status period would be used in the high-three average salary calculation. For example, if an employee whose annual rate of basic pay is $85,000 is placed in a furlough status for two weeks and that twoweek period falls in the employee’s average salary period, that twoweek furlough period will be credited in the high-three average salary calculation using the $85,000 annual rate of basic pay that was in effect during the furlough period. In this example, the loss of actual pay (or earnings) during that period is not material in the high-three average salary calculation. For more information on the

effect of furloughs, go to the OPM website, www.opm.gov, and click on “Furlough Guidance” in the graphic carousel at the top of the Main Home Page.

Missing contributions

I am a long-time federal government employee, since 1968, and am under the Civil Service Retirement System (CSRS). A pay stub anomaly occurred in 1996. My 28 years of cumulative retirement contributions in my first paycheck in January 1996 was recorded to contain $39,418; since then, my cumulative retirement contributions have accrued from this new starting point. I did not convert to the Federal Employees Retirement System, and I have had no break in service. I recently applied for retirement. Can I presume that the missing cumulative retirement will be reinstated by the Office of Personnel Management (OPM) for “tax-free” computations? Or do I need to pursue this reinstatement? Can you explain why this happened?

Almost all employees, during their careers, experience having their leave and earnings statements modified, and their cumulative contributions changed. When your payroll office changes, your leave and earnings statement will reflect your retirement contributions for that one pay period and continue to accumulate. Your payroll office usually changes when you move from one job to

the next or if you are assigned to a new payroll office without moving to another job. When your payroll office changes, your agency closes out your payroll records and sends them to OPM. Each time there is a change, your leave and earnings statements will reflect the amount of money that you contributed for that one pay period, and your cumulative contributions begin again. OPM will send you a benefits booklet after your annuity is finalized, and the booklet will contain your total retirement contributions. If you are within a few months of retirement, you should wait until you get that figure from OPM to see if there is a problem. OPM uses your pay records to finalize your claim. You want those pay records to remain in their current location until the claims examiner requests those records. You may write OPM if you are not close to retirement, and OPM will provide you with those figures. OPM is not able to make a request for pay records a priority, so we suggest that you keep copies of your leave and earnings statement each time your payroll office changes.

Yes. If you accept a VER offer, the FERS Annuity Supplement is paid at your minimum retirement age.

TSP ApP?

I found a mobile application that prompted me to use my Thrift Savings Plan (TSP) ID number. Is this a legitimate app?

Here is what the TSP has to say about that: “There are a number of mobile applications that reference the TSP and may prompt you for your TSP credentials. These applications are not sponsored by the TSP. The TSP cannot endorse any information or advice provided by third-party applications. More important, providing your TSP account credentials to third-party applications may jeopardize the security of your account. For more information on keeping your account safe, see the Security Center on the TSP website, www. tsp.gov, or contact the ThriftLine at 877-968-3778.”

retirees FERS Supplement

I am under the Federal Employees Retirement System (FERS), age 55, with 25 years of service. Under voluntary early retirement (VER), can I get the FERS Annuity Supplement?

Roth TSP

I retired in June 2012 under the Civil Service Retirement System. If I understand correctly, the gist of the article “A Mega Roth IRA Opportunity” in the January 2013 w w w. n a r f e . o r g

Questions & Answers

issue of narfe magazine was that federal employees could contribute up to 10 percent of their salary to a Roth Thrift Savings Plan (TSP) account. I also understand that this is only applicable to employees who are still working. Until I read the article, I was unaware of this opportunity. Can I now follow up with the Office of Personnel Management (OPM) to appeal? Please also point me to the IRS regulations.

While the Roth TSP was authorized by the Thrift Savings Plan Enhancement Act of 2009, the new option allowing participants to contribute after-tax dollars into their TSP accounts did not go into effect until May 7, 2012. While we don’t know what the basis of your appeal would be, in any case, OPM has no authority with regard to the TSP and would not be the office to contact. We suggest that you write to the Thrift Investment Board, 1250 H St. NW, Washington, DC; or phone 202-942-1460. There are many IRS regulations applying to Roth 401(k)s, and we are unable to cite the one that may apply to this situation. The legislation that allowed the TSP to offer a Roth option can be found at www.fedsmith.com/2009/06/14/ thrift-savings-plan-enhancementact-2009.

Delayed Interim Annuity Payments

I am writing on behalf of a friend and former coworker with the Department of Agriculture. She retired, effective December 31, 2012, and

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has yet to receive her annuity. Some delay has affected processing her paperwork, and there was a delay in sending it to the Office of Personnel Management (OPM). My friend was a 37-year employee and now faces a health crisis. I retired in 2011 and felt that I had a smooth transition. I received incremental payments, and the entire process was seamless. My thanks to OPM. I shared my experience with her about the process and advised that it does take a few months to finalize. My friend

even though premiums are not deducted from her interim monthly annuity.

Qualifying Life Events

I retired under the Civil Service Retirement System and have health insurance coverage under the Federal Employees Health Benefits Program (FEHBP) for me and my spouse. We do not have separate vision or dental coverage. My spouse, a nonfederal employee,

OPM cannot begin interim payments until it receives records from the agency. Once received, it takes OPM only about a week to set up interim payments. is now concerned not only about income but also about health benefits. I hope that, somehow, her case can be highlighted for review, and she will have some relief quickly and will not have to wait another four weeks, as she has been told.

Unfortunately, some agencies are not as fast at getting retirement packages for their retired employees to OPM as are other agencies. OPM, of course, cannot begin interim payments until it receives these records from the agency. However, once received, it takes OPM only about a week to set up the interim payments to be included in the next payment tape sent to the Treasury Department. Your friend’s health benefits coverage will continue while she is in interim pay status,

will soon be losing her job, which does cover dental and vision insurance for both of us. Can I apply now for dental and vision insurance under a “life event,” or do I have to wait for Open Season?

The Federal Employees Dental and Vision Insurance Program (FEDVIP) is separate and different from the FEHBP. According to BENEFEDS.com, a secure enrollment website sponsored by the Office of Personnel Management for dental and vision insurance, the following is one of the types of qualifying life events that would possibly permit you to enroll outside of Open Season: Losing other dental/vision coverage (either the eligible or covered person); the time limit to submit the qualifying life event is from 31 days before to 60 days after the event date.

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50 Years later the 1964 Silver Proof Set still shines bright

n November 25, 1963, just three days after the tragedy in Dallas, the U.S. Mint began work on the 90% Silver

Kennedy Half Dollar. It would prove to be one of the most popular half dollar designs in our nation’s history. Not surprisingly, when Americans discovered that the brand new Kennedy Half Dollar was the centerpiece of the 1964 U.S. Silver Proof Set, demand immediately soared through the roof! By January 11th, 1964, the Mint was forced to halt orders for the 1964 Silver Proof Set, and eventually had to reduce the original maximum order of 100 Proof Sets down to just 2 sets per buyer in the face of such staggering demand. Finally, on March 12, even the limit of 2 sets was halted because the Mint received orders for 200,000 Proof Sets in just two days! Fifty years later, the 1964 Silver Proof Set is still in great demand. Why? Because this set is chock full of “Firsts”, “Lasts” and “Onlys”:

1964 Proof Set Firsts, Lasts & Onlys ✔ The FIRST year Kennedy Half Dollar Proof ✔ The FIRST Proof set to feature a former president on every coin ✔ The LAST Proof Set struck at the Philadelphia Mint ✔ The LAST year the Roosevelt Dime, Washington Quarter and Kennedy Half Dollar were struck in 90% silver for regular production ✔ The ONLY 90% Silver Kennedy Half Dollar Proof ever minted for regular production ✔ The ONLY Kennedy Half Dollar Proof struck at the Philadelphia Mint

As we approach the 50th Anniversary of JFK’s 1963 assassination this year, the 1964 U.S. Silver Proof Set is back into the spotlight again. Each set contains the 1964 Lincoln Cent and Jefferson

Nickel, along with three 90% Silver coins: the Silver Roosevelt Dime, Silver Washington Quarter, and the 1964 Silver Kennedy Half Dollar—the only 90% Kennedy Half Dollar ever struck for regular production.

Saved from destruction—but how many sets survived?

Collectors know that the key is to find those sets still preserved in the original U.S. Mint “flat pack” just as issued. And over the past 50 years, that has become more and more difficult! Since this set was issued, silver prices have risen from $1.29 per ounce to over $48 per ounce at the silver market’s high mark. During that climb, it is impossible to determine how many of these 1964 Proof Sets have been melted for their precious silver content. The packaging on thousands of other sets has been cut apart to remove the silver coins—so there is no way to know for certain how many 1964 U.S. Proof Sets have survived to this day.

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Questions & Answers

You should contact BENEFEDS directly at BENEFEDS.com or phone 877-888-3337.

Health Coverage for Ex-Spouse

My father worked for the federal government for 26 years. He and my mom divorced in May 2009. My mom got temporary health coverage through Blue Cross/Blue Shield through the federal employees’ insurance program. We received a letter stating that this coverage would be coming to an end soon. My father read the article “Marriage and Divorce Federal Style” in the February 2013 issue of narfe

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magazine stating that my mom should still be able to have continued health coverage. Can you tell me if this is true? If so, how do I go about helping her get this continued coverage?

Continued health insurance coverage for former spouses of federal annuitants under the Federal Employees Health Benefits Program (FEHBP) can be continued following a divorce in one of two ways. Under the temporary continuation of coverage provisions, a former spouse may apply and pay the entire premium for FEHBP coverage that continues for up to 36 months after the divorce.

Under the spouse equity provisions, a former spouse who was covered by the annuitant’s enrollment for 18 months prior to the divorce and who has not remarried prior to age 65, and who has a qualifying court order that awards the former spouse a portion of the retiree’s annuity benefit or awards a future survivor benefit based on the retiree’s federal service, may enroll in the FEHBP and have coverage for as long as the former spouse meets all of the requirements and pays the premiums. For additional information, go to the Office of Personnel Management’s website at www.opm.gov/ healthcare-insurance/healthcare.

11/16/12 5:14:06 PM

CHA-CHING! It’s payback time. Federal retirees can get Medicare Part B virtually FREE with MHBP. Federal retirees who are eligible for Medicare (or soon will be) and enroll in the MHBP Standard Option with the Part B Premium Savings Program can get Medicare Part B for nearly free. MHBP will reimburse Medicare Part B premiums for you and your spouse up to the standard amount — $104.90 per month. That’s just over $1,250 a year per person or $2,500 a year per couple! Only those individuals who have Medicare as their primary coverage and have health benefits through MHBP Standard Option are eligible for the program.

It Pays to Choose MHBP

Get in on the Deal

Here are a few good reasons to enroll in MHBP Standard Option with the Part B Premium Savings Program:

1. Use your agency’s preferred method to enroll in MHBP Standard Option. Choose code 454 for Self Only coverage or 455 for Self and Family.

✔ You will have comprehensive coverage that easily coordinates with Medicare. ✔ You can get Medicare Part B coverage at no cost to you (barring any late enrollment penalty). ✔ You will maximize your benefits by having both Federal Employees Health Benefits (FEHB) and Medicare coverage. ✔ You can avoid paying the late enrollment penalty by enrolling for Medicare when first eligible. ✔ You can mitigate the added premium cost Medicare imposes for high-income earners.

2. Complete the MHBP Part B Premium Savings Program enrollment form, and mail it to MHBP right away using the address provided on the form. 3. Enroll for Medicare Parts A & B if you don’t already have this coverage. 4. Notify MHBP that you have completed your Medicare enrollment. 5. Submit your reimbursement request* with your proof of premium payment.

✔ You will have more certainty about your out-of-pocket expenses as a retiree on a fixed income. MHBP Standard Option with the Part B Premium Savings Program is a great choice when you are retired and eligible for Medicare — you get the coverage you need, you lower your out-of-pocket expenses by having both FEHB and Medicare coverage, and, of course, there’s the cash back — just over $1,250 or $2,500 each year that’s returned to your budget.

Contact MHBP at 1-888-475-2622 and learn how it pays to have Medicare Part B. *You will be eligible to begin to receiving your premium reimbursement after your Medicare and MHBP enrollments become effective. The effective dates can vary based on when you enroll for coverage (e.g., FEHB Open Season, qualifying life event, Medicare general enrollment period, initial Medicare enrollment, etc.). This is a summary of the Mail Handlers Benefit Plan Standard Option and Medicare. Before making a final decision, please read the 2013 official Plan brochure (RI 71-007). All benefits are subject to the definitions, limitations and exclusions set forth in the 2013 official Plan brochure. A single annual $42 associate membership fee makes all MHBP plans available to you. For more information about Medicare call 1-800-MEDICAR. © 2013 Coventry Health Care, Inc. All rights reserved.

Questions & Answers

NARFE at Your Service Self-Only vs. Family Coverage

My husband and I are both retired federal employees. He has always carried our Federal Employees Health Benefits Program (FEHBP) coverage. He is now enrolled in Medicare, and we are considering changing to two self-only plans in the next Open Season because we will save more than $500 in premiums. Are there any “cons” to this proposed change that we should consider? How can I avoid problems with my own enrollment?

There are two downsides to having separate coverage under the FEHBP.

First, you will each have to pay deductibles up to the dollar limit set by your plan. Second, you will have separate catastrophic limits to meet instead of one for both of you. If you decide to go for separate coverage, we see no problem in the two of you enrolling on your own during the next Open Season. 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 NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

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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,

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Cover Story

Telework

may be finally moving from a federal workplace privilege to a

workplace presumption

Illustration by Bill Pragluski, Critical Stages, LLC

he roads around Albany, NY, in winter are not for the faint of heart. Dolores Ryan is a configuration management analyst

in the Department of Veterans Affairs (VA) Office of Information in Albany, with 31 years of service. She lives 18 miles from the main VA facility, in Eagle Mills, a rural area. Ryan, 63, says that, when she was younger, she didnâ&#x20AC;&#x2122;t mind driving to and from work.

But in recent years, she began worrying about the commutes in winter, when she would arrive and leave the facility in the dark â&#x20AC;&#x201C; especially after she hit a deer 1-1/2 years ago and totaled her car. Last October, Ryan, who had worked since 2006 under a part-time telework arrangement with her agency, made the jump to teleworking for the agency from her home full-time. If not for telework, the wear and tear of her daily commutes would have caused her to retire, Ryan says. Backed by federal legislation, Office of Personnel Management (OPM) guidance and individual agency top management, and buoyed by a successful role ensuring continuity after recent natural disasters, telework may be finally moving from a federal workplace privilege and futuristic human resources goal into a workplace presumption for many. Telework also has profound implications for agencies and employees, particularly for federal workers in the autumns of their careers. But middle-management resistance, other agency and human resources priorities, information technology (IT) issues, and some employee performance issues are slowing and complicating implementation at many agencies. The expansion of telework is particularly good news for federal workers with families, long commutes and special needs, and for workers looking to transition into retirement. With respect to the last category, it represents

By David Tobenkin

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

another in an expanding arsenal of federal pre- and post-retirement and flexible-work options. These include authorities that allow retired federal workers to continue post-retirement employment without offset to their annuities and the new phasedretirement law, under which federal workers can agree to reduce their future pension payments in exchange for reduced work schedules and the ability to draw on some of their pension benefits while still working. Since enactment of the Telework Enhancement Act of 2010 (TEA), federal agencies have rolled out telework arrangements, and increasing numbers of federal employees are taking advantage of them, according to OPM. In June 2012, OPM issued a report to Congress, the “2012 Status of Telework in the Federal Government,” the latest in a line of annual OPM reports on telework that have assessed agency telework practices. OPM reported considerable progress implementing the TEA and expanding telework, with approximately 21 percent of telework-eligible employees participating in routine telework in September 2011, up from roughly 10 percent during calendar year 2009, although OPM has cautioned that data-collection practices differed in different periods. The report also found that, among agencies responding, those teleworking represented 8 percent of total employees at those agencies. In addition, OPM reported that all participant agencies in its data call had established telework policies and notified agency employees of their eligibility to participate in telework; all agencies covered by the Act had designated a permanent or acting telework management officer; and agencies that collectively employ more than 99 percent of the federal workforce had adopted telework as a critical component of their agency continuity of operations plans (COOP). “Agencies have worked quickly and diligently to implement the requirements of the Telework Enhancement Act and make telework available to employees as described under the law,” says Angela Bailey, OPM associate director, employee services. Others agree. “We have achieved our initial goal of establishing a framework to guide implementation of telework across the federal government, and we’ve already seen an increase in participation,” says Rep. Gerald 26

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E. Connolly, D-VA, one of the sponsors of the TEA. Telework experts say that the TEA helped advance telework in a very specific way. “The Telework Enhancement Act has been a turning point for agencies who were sitting on the fence,” says Cindy Auten, general manager of the Mobile Work Exchange, a public-private partnership focused on demonstrating the value of mobility and telework. “The Telework Enhancement Act is very specific on what is required of agencies at each point to help move the ball forward, and you can see in the legislation the experience of strong agencies in approaches to help move the ball forward. Requiring management training, for example, addresses one of the biggest barriers to change, in that some managers are still just using time and attendance to measure performance. Agencies also are required to let employees know if telework is available to them. We’ve seen tremendous efforts by agencies to move forward; but as agencies will tell you, you can’t do everything in a single year.” Others, however, are more restrained in their assessment of where matters stand, saying sequestration, the fiscal cliff and other priorities have put the brakes on more rapid telework implementation. “Agencies are trying as hard as they can, but they are hamstrung by sequestration and the fiscal cliff, which have slowed the progress,” says Kate Lister, president of Global Workplace Analytics, a firm that researches telework patterns. “One agency we are working with had thousands of people who wanted to attend a particular training session, but they could only afford phone lines for 500.” An important telework threshold came in October 2012, when OPM Director John Berry closed federal offices in Washington, DC, during Hurricane Sandy. Yet, an OPM announcement ordered teleworkers scheduled to telework to do so or take leave. The U.S. Patent and Trademark Office (PTO), a federal government leader in telework efforts, reported high productivity during the crisis through telework: “During the October 2012 Hurricane Sandy, while the federal government was closed to the public, the U.S. Patent and Trademark Office was still able to maintain a rate of 70 percent productivity, thanks to its telework program,” says Danette Campbell, senior telework adviser to the PTO. Then, in December 2012, Berry issued guidance

for emergency dismissal and closure procedures that highlighted the importance of unscheduled telework as a tool to strengthen COOP capabilities and announced the expansion of telework to enhance productivity during government closures.

Uneven Implementation

The Government Accountability Office is expected to issue a report that will assess the progress that each federal agency has made toward achieving the TEA’s goals by evaluating OPM’s 2012 Status of Telework report. It is expected to find, as earlier examinations by OPM and the Congressional Research Service found, that progress has varied widely at different agencies. That came to the fore in a December 2011 letter from Rep. John Sarbanes, D-MD, and Connolly, who both have large numbers of federal workers in their districts, to Berry relaying findings of a Congressional Research Service survey on telework at federal agencies. The letter gave front-of-the-class kudos to the U.S. Department of Agriculture (USDA), the PTO and the General Services Administration (GSA), whose high rate of total work hours accomplished through telework “suggests that PTO, USDA and GSA are integrating telework into daily operations, consistent with the goals of the Telework Improvement Act,” the letter said. Developed from a small pilot program in 1997, the PTO program shows just how far a telework program can go at an agency. As of first quarter 2013, a total of 74 percent of PTO positions are eligible for telework, and 86.7 percent of eligible positions are teleworking, Campbell says. All business units of the agency now use telework, says Campbell. “With the appropriate telework eligibility selection, collaboration tools, non-IT and IT training, and clearly defined performance measures, telework is successful for all business units. Following the philosophy that the PTO telework initiative is not ‘one-size-fits-all,’ each telework program is developed to meet the needs of a specific business unit or audience within a business unit,” Campbell adds. At USDA, another telework leader, support from top agency leadership has driven implementation and penetration of telework at the agency. “Telework and USDA’s Work/Life Programs are an integral component of the Department’s commitment to cultural transformation,” says Mika Cross, work/life and wellness program manager.

Some agencies report that telework contributes to large reductions in expenses. “Agriculture Secretary Tom Vilsack and his leadership team are absolutely committed to the transformation of our workplace culture, which includes a change in how and where we work. Each month, leadership is ranked on the progress made toward transformation goals and objectives, and telework is one that is measured each pay period, as well as monthly. The goals are communicated clearly to agency leadership, human resources staff, employees and labor organizations, so this approach has worked effectively to ignite rapid change.” As of February 2013 at the USDA, 75 percent of all employees are eligible for telework, 48 percent of employees have approved telework agreements, and 31 percent are participating in telework, Cross says. Some agencies are reporting that telework policies are contributing to large reductions in expenses for individual agencies and the federal government. The USDA’s Cross says that as USDA employees “increase participation in telework (even just an additional day or two per pay period), this can equate to thousands of dollars in cost avoidance, per employee,” adding up to a $2 million savings when the USDA executed its transit subsidy contract in fiscal year 2012 based on telework participation. In contrast to those telework leaders, telework availability and use has lagged at other agencies. Federal legislators and union leaders are critical of agencies that are not making similar progress. The December 2011 Sarbanes/Connolly letter, for example, termed the VA’s classification of 87.5 percent of employees as ineligible for telework “an extraordinarily high rate of telework ineligibility.” That language was mild compared to that reserved for two other agencies, the Department of the Treasury and the Department of Homeland Security. “The Department of the Treasury has classified 53 percent of positions as ineligible for telework, and a mere 1 percent of work hours are w w w. n a r f e . o r g

completed through telework,” said the letter. “The Department of Homeland Security (DHS) has classified 70 percent of employees as ineligible, and an average of 0.016 percent of employees teleworked during the average pay period. This abysmal telework performance is inexplicable in light of the large number of DHS positions, and could prove to be a threat to national security if DHS is unable to implement a Continuity of Operations Plan because its employees are unaccustomed to telework.” Many narfe magazine readers responding to a magazine query said that their agencies have made significant progress in implementing telework. “Telework is much more embraced,” says C. Lee Page, a consumer affairs specialist in the San Francisco division of the Federal Deposit Insurance Corporation. “More and more program areas are being encouraged to telework. I think that supervisors have seen it work, either through their own detail assignments to the Washington, DC, office or because they approved direct reports that the supervisor trusts to telework.” (narfe magazine notes that some assertions in comments by readers in response to the query cannot be readily confirmed.) Other federal employees, especially at some larger agencies, said that progress varies greatly across the organization. “Management support varies from location

The largest barrier to telework implementation is managerial resistance. to location,” says one Washington, DC-based employee at the DHS, who requested anonymity. “General, high-level policies are in place with the interpretation of those policies left to local managers at the various levels.” By all accounts, OPM under Berry has been a powerful force for driving change, with even union leaders singing his praises. “Director Berry has been very liberal and open to telework,” says Charletta McNeill, president of 28

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the American Federation of Government Employees Local 32, housed at OPM. “When you have a director that has that open-mindedness, it makes a big difference. He has embraced the theory that he wants the federal government to be shutdownready in the event of a catastrophic event.”

Agency Challenges

The largest barrier to implementation is managerial resistance, the OPM’s 2012 Status of Telework report found, consistent with the comments of a wide range of telework experts. “There is a commandand-control attitude in federal government,” says Lister, of Global Workplace Analytics. “When you strip away everything else, that is the fundamental issue: Managers don’t trust everyone else.” Many middle managers and supervisors themselves face resistance to teleworking. “It depends on individual office directors and individual branch chiefs – they set the policy,” says a division manager at the Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA), who requested anonymity. “Most directors only allow their subordinate managers to telework on an ad-hoc basis. Our organization needs more support from top management to convince all managers to allow more frequent telework.” Some say management has blocked access to telework, often at the local or regional level, or as applied in practice. “Telework is advertised as available by the commander [at his location]; however, supervisors will not approve it, and it is not available to most employees,” says an employee at the Army Corps of Engineers (ACE). IT issues posed by employees working from home and seeking to interact with colleagues at work and other locations are a challenge at many agencies. Some narfe magazine readers expressed concerns that many cost savings identified in agency telework plans are agency costs being pushed upon their shoulders. Some said that lack of high-speed Internet access or computer equipment, or lack of support for the financial costs of working at home, has made it infeasible for them to telework extensively. “Management is pretty supportive [of telework],” said one. “However, if an employee chooses to work exclusively at home, [my agency] will not supply any monitor, printer, paper or office supplies, which is why no one teleworks exclusively.”

Mobile Work Exchange’s Auten says, given that many employees have electronics at home that are superior to those back in the office, interoperability and other issues related to “Bring Your Own Device” is one of the largest issues facing IT executives implementing telework plans. Security of information also is a major concern for both employees and agencies, particularly in cases of employees using their own devices. “For most of our day-to-day work, we need access to certain IT systems that are not accessible from telework; so, until IT security allows us to access these systems from home, we can only do [telework] part of the time,” says Joe Geraci, lead ship life cycle manager, aircraft, at the Department of the Navy’s Carrier Planning Activity in Portsmouth, VA. Geraci says that he teleworks every second Friday and uses telework hours to perform tasks for which he does not need access to secure data. Some defense agencies report progress in implementing telework, including through establishing secure, remote locations where teleworkers can access sensitive, protected information. “Nearly 66 percent of our workforce is eligible for secure telework,” says Kelly Dove, deputy chief of the Defense Intelligence Agency’s (DIA’s) Employee Services Division. “In order to participate, employees’ positions must be eligible. Furthermore, supervisors must complete telework training, and there must be a telework agreement. Less than 10 percent of the eligible DIA workforce has completed the requirements to telework. There are a very limited number of positions that offer unclassified telework, which is why DIA expanded its telework program to include secure telework. Secure telework allows employees to work in controlled, classified environments.”

Some Downsides

The majority of narfe magazine readers who said that telework is available at their agency described it as a positive, with many characterizing it as an unmitigated blessing. It has helped them concentrate, spend more hours and more-productive hours at work, reduced commute time and costs, and allowed them to spend more time with family. However, a smaller number of readers said that telework raises issues of perception and sometimes actual abuse, as well as more subtle downsides. “If the employee teleworks a great deal, there are some visibility issues amongst both peers and

supervisors,” says a DHS employee in Washington, DC, who requested anonymity. “The employee may be considered ‘lazy’ or an ‘opportunist.’ There is also a challenge with many employees who become unresponsive or demonstrate a slow(er) response rate to questions and queries from the office while they are teleworking.” Within agencies, middle and first-line managers are increasingly being asked to justify why their employees should not be entitled to telework. Some say that the trend may have gone a bit too far. “Even though the [USDA] telework policy states that it is a privilege that may be revoked, many managers are fearful of actually restricting or eliminating telework for employees who fail to live up to their agreements,” says one USDA employee. Others say that something is lost with reduced direct interaction among employees. “Due to telework and restriction/limiting of legitimate travel, virtual staffs like me (which are very common) do not have any face-to-face time with the management for as long as the whole year,” says one GSA employee who requested anonymity.

Making it Work

It will likely take many years for the full potential of telework to be realized throughout the federal government. That will allow for deployment of better IT at agencies and homes, better management practices, and for employees to gain expertise on electronic devices necessary to fully use telework. “The younger employees are more open to telework than workers near retirement, since they are comfortable with VPN [virtual private network] and web-meeting technology,” says one employee at the ACE. “Older workers at my organization do not use telework.” But as the VA’s Ryan demonstrates, change could come more quickly for many older employees. Next year, she plans to take one more step away from those cold upstate New York winters by moving to Sun City Center, an age 55-plus retirement community near Tampa, FL. Ryan says that she’ll be bringing her job with her, as her supervisor has approved her ability to telework from her new home. Could Florida retirement communities become the next federal government hub? —David Tobenkin is a freelance writer based in the washington, DC, metropolitan area. w w w. n a r f e . o r g

Whether you call it the Affordable Care Act or

"Obamacare,"

the health care reform law will take full effect in 2014. Here's what it means for you. By Amy Burke

he health care reform law, formally known as the Patient Protection and Affordable Care Act (ACA) and informally labeled “Obamacare,” has been hotly debated on the national political stage. Although the ACA was signed into law in March 2010, many NARFE members remain concerned about how it affects the Federal Employees Health Benefits Program (FEHBP). “There is a lot of uncertainty on what is in the Affordable Care Act,” notes NARFE member Jim Biscardi, a Department of Defense retiree. “Given the wide range of misinformation on the Affordable Care Act overall, federal employees and retirees are understandably concerned,” says NARFE Legislative Director Jessica Klement. However, there are no provisions in the law affecting all federal employees or retirees, she adds, thanks to NARFE and other federal employee groups that lobbied extensively during the bill’s legislative process. ACA’s most significant change for federal employees affects only members of Congress and their staffs, who must obtain insurance through health care exchanges, instead of the FEHBP, effective January 2014. NARFE continues to have concerns about this provision, particularly since residency situations for some members and staff may limit their choices to the two national exchanges. The law also allows Indian tribes, tribal organizations and urban Indian organizations to purchase FEHBP coverage for their employees, beginning in spring 2012. The benefits are administered through the National Finance Center, under an arrangement with the Office of Personnel Management (OPM).

Key Changes for All Insurers

Otherwise, the ACA’s changes to the FEHBP are those that apply to all insurance providers. “The law requires very few changes for plans that are well designed, such as all of the FEHBP plans,” says Walton Francis, author of the Consumers’

CHECKBOOK Guide to Health Plans for Federal Employees and Annuitants. In a February 2013 report on the FEHBP, the Congressional Research Service (CRS) noted that “some ACA provisions have no meaningful effect on FEHBP as the plans already meet the requirements of the provision, while other provisions confer new requirements on the plans.” “Since the enactment of the ACA, OPM has been carefully monitoring FEHBP carriers’ compliance with all the new requirements established by the law, including market reforms concerning eligibility, benefits and coverage,” an OPM spokesperson told narfe magazine. “For example, OPM worked closely with carriers on timely implementation of the requirement to extend dependent coverage up to age 26.” “I cannot overstate how this part of the law has helped us, and how grateful we are,” says Dan Feld, who retired in 2009 from the Philadelphia Regional Office of the Centers for Medicare & Medicaid Services of the Department of Health and Human Services. “Our older son recently graduated from college (not yet employed), and he wouldn’t have health insurance otherwise.” Effective in 2011, insurers were required to use 85 percent of premiums on care services or plan improvements. In August 2012, the law required insurers to cover certain preventative services and wellness screenings without enrollees having to pay any out-of-pocket costs – in other words,

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

EHBP AND HEALTH CARE REFORM

no co-pay, coinsurance or deductible. Francis of Consumers’ CHECKBOOK notes that at OPM’s insistence, the FEHBP plans implemented the preventative care provisions in 2011. (However, the CRS reports that some plans may waive the cost-sharing only when enrollees use in-network providers.) In 2014, a number of provisions of the ACA are scheduled for implementation, including prohibition of plan lifetime and annual spending limits, as well as banning exclusions based on pre-existing conditions. Once again, the FEHBP is ahead of the pack. “Historically, FEHBP plans have not imposed lifetime limits, and OPM will continue to enforce this requirement,” noted the CRS report. “However, some FEHBP plans have imposed annual limits on certain benefits, and beginning in plan year 2013, OPM expects all FEHBP plans to eliminate annual limits on essential health benefits,” the report noted. FEHBP plans have always been prohibited from having pre-existing condition exclusions, the CRS also pointed out. This year, employers were required to report the value

of employer contributions to health care on employees’ W-2 forms for tax year 2012. The amount is provided for informational purposes only. This provision was included in the law in an effort to educate the public about the costs involved in health insurance. “People do not understand what health insurance really costs, and how much is being subsidized,” notes Francis. In the FEHBP, the federal government’s employer contribution is 72 percent of the weighted average premium of all plans in the program, not to exceed 75 percent of a particular plan. Also this year, flexible spending accounts (FSAs), which enable employees to use pretax funds to help pay out-of-pocket medical expenses, will be limited to $2,500, down from $5,000. (Retirees cannot have FSAs.) For tax year 2013, taxpayers can claim a tax deduction for unreimbursed medical expenses only if these expenses exceed 10 percent of their adjusted gross income; this is an increase from the previous threshold of 7.5 percent. However, taxpayers age 65 and older still will

ACA Timeline

2010

• Insurers must provide coverage of adult children up to age 26 (including married). • New policies cannot impose lifetime dollar limits. • All new plans must cover preventative care, screenings and child/adult recommended vaccinations at no cost. • One-time, $250 rebate for Medicare Part D participants whose prescription medication costs placed them in the “donut hole” coverage gap, where costs fell between the $2,800 limit and the $4,550 yearly maximum, resulting in patients being responsible for 100 percent of medication costs in this range.

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2011

• Large insurers must spend 85 percent of premiums on care and plan improvement, limiting administrative costs. • Nonprescription medication costs no longer covered in flexible spending accounts.

2012

• Indian tribes, tribal organizations and urban Indian organizations may purchase FEHBP insurance for employees through an OPM partnership with the National Finance Center.

2013

• Employers, including federal government, must disclose health care premium contributions on W-2 forms starting with 2012 tax year (informational, nontaxable). • Medicare Part D donut hole patient costs: 50 percent for brandname drugs and 86 percent for generics.

be able to use the 7.5 percent rate through 2016. In 2018, a “Cadillac tax” of 40 percent will be imposed on insurance companies for plans that exceed an annual cost of $10,200 for individuals or $27,500 per family. Those figures are for the combined contributions of enrollees and employers. Francis notes that, while the tax will likely “not pinch [the FEHBP plans] right away, over time, it will affect the richness of benefits that employees get.” He predicts that, in the 2020s, the tax could affect more expensive plans, which may make changes in cost sharing or increase deductibles. However, even if the tax does impact certain plans, FEHBP enrollees always have the option to switch to another plan. The law also continues to narrow the coverage gap, known as the “donut hole,” for Medicare Part D prescription plan participants. The donut hole is the place where prescription costs range between the annual limit and the catastrophic coverage maximum spending limit ($2,970-$4,750 in 2013), and patients pay largely out-ofpocket. It is unlikely that many FEHBP enrollees have Medicare Part D. “Very few people who contact us are

2013

• Reduction of flexible spending account annual limit from $5,000 to $2,500. • Threshold for tax deductions of unreimbursed medical expenses rises from 7.5 percent to 10 percent of adjusted gross income. Seniors age 65 and older are exempt from the increase from 2013-2016. • Medicare Part D donut hole patient costs: 47.5 percent for brand-name drugs and 79 percent for generics.

2014

• All members of Congress and staff must enter the state or national health exchanges, and will no longer be covered through the FEHBP.

enrolled in it,” says David Snell, NARFE’s Federal Benefits Service Department director, because the prescription drug coverage offered by the FEHBP plans is equal to or better than Medicare Part D.

Effects on premiums

In the short term, some of the ACA’s requirements on insurers could result in slightly higher premiums. Francis notes that the law has already caused a minor increase in premiums, citing two requirements already in effect: coverage of preventative care without a deductible and coverage of adult children to age 26. The CRS reported that “ACA will also impose an annual fee on health insurance plans based on their market share, which could affect most FEHBP carriers.” Over the long run, however, the law was intended to slow the growth of health care costs and premium increases. According to the Congressional Budget Office, the ACA will result in premiums that are 0-3 percent lower in 2016 compared to without the law. Francis notes that the law could reduce unnecessary medical

2014

• Annual spending limits prohibited. • Nondiscrimination of rates based on gender or preexisting conditions. • Maximum deductible $2,000 individuals, $4,000 families.

2015

• Medicare Part D donut hole patient costs: 45 percent for brand-name drugs and 65 percent for generics.

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

EHBP AND HEALTH CARE REFORM

procedures and put pressure on plans to implement cost-saving measures that, in aggregate, would result in slowing the growth of health care costs. “The net effect [of ACA] on federal employees may not be negative on balance, it may even be positive,” concludes Francis.

Fighting to Preserve FEHBP

For 50 years, the FEHBP has provided health insurance to the federal family through competing private carriers. According to OPM, the FEHBP currently has approximately eight million participants – active and retired federal employees and their families – making it the country’s largest employer-sponsored health plan. “The FEHBP is the jewel in the crown of federal benefits,” says NARFE’s Snell. In its recent report, the CRS noted that the FEHBP has drawn the interest of policymakers and researchers for lessons that can be applied to private and public providers, as well as Medicare and coverage of the uninsured. In fact, OPM’s experience in administering the successful FEHBP, where private insurers compete to

provide coverage for a pool of people, is why OPM was selected to oversee the national exchanges. In large part, the FEHBP was protected due to the work of NARFE and others in battling measures that would have undercut benefits. In the September 2009 Senate Finance Committee markup of the bill, NARFE succeeded in moderating and defeating proposals that would have forced federal employees into the exchanges and opened up the FEHBP to nonfederal employees below a certain poverty level. In addition, NARFE successfully limited the dollar amounts subject to the “Cadillac tax,” since original proposals would have brought some FEHBP plans into the scope of the tax. NARFE also secured language in the law that requires OPM to hire separate staff and program budgets for the implementation of the two national exchanges, in order to reduce any impact on OPM’s administration of the FEHBP. The language also requires the risk pools to remain separate. —Amy Burke is a communications professional specializing in federal policies and politics.

ACA Timeline

2017

• Medicare Part D donut hole patient costs: 40 percent for brand-name drugs and 51 percent for generics.

2018

• 40 percent excise tax to insurers on plans with premiums exceeding $10,200 individuals, $27,500 families (excludes vision and dental). • Medicare Part D donut hole patient costs: 35 percent for brand-name drugs and 44 percent for generics.

2019

• Medicare Part D donut hole patient costs: 30 percent for brand-name drugs and 37 percent for generics.

2020

• Medicare Part D donut hole closed: 25 percent for brand-name drugs and generics.

More information on changes due to the ACA, including an interactive timeline, can be found at www.healthcare.gov.

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*Lifeline phone and AutoAlert pendant required. Button range may vary based on range test in and around your home. AutoAlert does not detect 100% of all falls. If able, users should always push their button when they need help. Copyright © 2013 by first STREET for Boomers and Beyond, Inc. All rights reserved.

Special Section

ore than 250 representatives of NARFE chapters and federations traveled from around the country to the NARFE Legislative Training Conference to hone their advocacy skills. Their attendance couldn’t have come at a better time. As they gathered March 9-12, federal agencies were preparing to send furlough notices to hundreds of thousands of federal employees as a result of sequestration, and Congress was debating extension of the federal employee pay freeze for a third year. The conference, at the Renaissance Arlington (VA) Capital View Hotel, featured two days of speeches and breakout sessions, and one day on Capitol Hill for a rally and visits to congressional offices. NARFE Legislative Director Jessica

Klement briefed attendees on the latest activity in Congress and moderated a panel discussion featuring three congressional staff members, who advised the conference goers on the best ways to get their message across when they meet with members of Congress and their staff. “The biennial legislative conference affords NARFE members an opportunity to learn more about the legislative process and how things work in Congress,” Klement said. “NARFE’s rally on Capitol Hill was particularly successful, with many leaders from the federal community and three members of Congress. “We are hearing lots of positive feedback on the meetings NARFE members had with their members of Congress,” she added.

Alison Peña, left, legislative chair of the Wisconsin Federation, meets U.S. Rep. Mark Pocan, D-WI, in his Capitol Hill office during the NARFE Legislative Training Conference. (Photo by Mike Theiler)

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Advocacy Tune-up

t break-out sessions, attendees: • Heard about grass-roots campaigning, methods for contacting members of Congress and the use of social media. They were urged to tell their stories on the Protect America’s Heartbeat website, www.protectamericasheartbeat.org, and get them into the hands of legislators to highlight federal employees and retirees in their districts. • Learned, through entertaining and informational skits, the “right” and “wrong” way to conduct congressional visits. • Were briefed on NARFE-PAC fundraising and how decisions on campaign donations are made in consultation with NARFE leaders in the field. • Examined where the federal budget process has broken down in recent years.

Capitol Hill Rally:

Frozen, Furloughed and Fed Up

“W

e are fed up with furloughs. We are fed up with frozen salaries. We are fed up with the government picking on government workers and retirees.” With that statement, NARFE President Joseph A. Beaudoin kicked off a rally at the U.S. Capitol. Beaudoin was joined by three Washington, DC-area members of Congress and federal and postal employee union leaders. “This is not a political game, this is personal,” said Bill Dougan, president of the National Federation of Federal Employees, referring to the furloughs. The majority of federal employees make between $25,000 and $75,000 a year, he pointed out. Colleen Kelley, president of the National Treasury Employees Union, said that as a result of the continuing pay freeze and furloughs, employees are “racing” into retirement. “They are going out of fear,” said Kelley, who predicted that the loss will have “a devastating impact on our country.” Cliff Guffey, president of the American Postal Workers Union, and Jeanette P. Dwyer, president of the National Rural Letter Carriers Association, also expressed solidarity with NARFE members. “We are proud to stand alongside federal employees,” said Dwyer.

Above: NARFE Legislative Director Jessica Klement, left, moderates congressional staff panel, from left: Ann Humphrey, office of Rep. Chris Van Hollen, D-MD; Kata Sybenga, Senate Homeland Security and Governmental Affairs Committee; and Ben Rhodeside, office of Rep. Gerald E. Connolly, D-VA. (Photo by Bridget Boel) Below: Rep. Frank R. Wolf, R-VA, right, addresses the NARFE rally on Capitol Hill as NARFE President Joseph A. Beaudoin looks on. Wolf was joined by Reps. James P. Moran, D-VA, and Gerald E. Connolly in speaking to the assembled conference goers. (Photo by Mike Theiler)

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

2013 Legislative Training Conference

Fed-Friendly Lawmaker Challenges NARFE To Line Up More Allies:

‘We Have Work to Do’

T Rep. Gerald E. Connolly (Photo by Margaret Carter)

hree federal-employee champions – two seated members of Congress and one former member – called upon attendees to persuade more lawmakers to stand up for the federal community, decried government dysfunction and said partisanship is to blame. Rep. Donna Edwards, D-MD, noted that the attendees came from all around the country and asked for their help in lining up additional allies to fight for federal employee benefits. “We have work to do with a lot of members of Congress who think, somehow or other, the interests of the broad federal workforce, both active and retirees, is only a concern of those of us who represent the metropolitan Washington suburbs,” she said. Edwards also told the largely retiree audience that the concerns of federal retirees are directly tied to the concerns of the active workforce. “Some people would like to divide and conquer,” she said. “Don’t fall for that.” Rep. Gerald E. Connolly, D-VA, said sequestration – the across-the-board reductions

U.S. Sen. Jon Tester, D-MT, reviews a package of letters from NARFE members in Montana presented by Janice Erfle, president of Chapter 459 in Billings. (Photo by Mike Theiler)

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in federal spending that began March 1 – “may or may not be an Armageddon, but it is a symbol of the dysfunction of our government right now.” The wars in Iraq and Afghanistan, creation of Medicare Part Above: Rep. Donna Edwards BELOW: Thomas M. Davis III D and the Bush-era (Photos by Margaret Carter) tax cuts contributed to spending down the budget surplus amassed in the Clinton administration, Connolly said. “Then the recession hit,” and federal spending rose to provide a safety net and economic stimulus. Fixing the budget deficit requires balance, he said. “We need a little more revenue, and we need less spending; but if we only focus on spending, it will be hard for the economy to come back.” Former member of Congress Thomas M. Davis III, R-VA, addressed the political climate in Congress. Republicans and Democrats are at each other’s throats as never before, he said. Three major factors leading to this polarization include redistricting and media business models, he said. A majority of people get their news via the Internet, “where anyone can say anything, and there are no filters.” The third factor is money. Campaign finance reform has meant that soft money is now in super PACs and interest groups, with corporations donating unlimited money. Davis also talked about the shrinking middle ground between liberal and conservative on Capitol Hill. In 2011, 4 percent were in the middle in the House; in the Senate, 0 percent were in the middle, he said. When he was in Congress, he was able to get things accomplished by working closely with his counterparts, he said. “We had to make compromises.”

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2013 Legislative Training Conference

To Get a ‘Big Deal,’

Put Everything on the Table

f Washington doesn’t reach a “big deal” to solve the nation’s budget-deficit problems, government programs will continue to be squeezed, said former Republican lawmaker Steven C. LaTourette. LaTourette retired in January after 18 years representing Ohio’s 14th Congressional District, citing frustration with partisan politics. Of the entire $3.6 billion annual federal budget, two-thirds goes out automatically to pay Social Security, Medicare, Medicaid and interest on the debt, he explained. “Of the last little one-third that is left on the table, one-half is defense spending,” he explained. Everything else that the federal government funds – education, employees, the environment, transportation, “whatever you think is important to you,” comes out of the remaining $600 billion. He criticized both parties for lacking the courage to act. “It is patently wrong for the Re-

publican party not to put revenue on the table,” he said. The amount of money that comes in through taxes, as a percent of the gross domestic product, is the same as 1959. “That’s not a sustainable model.” “Just as the Republicans need to get off the notion that we are not going to increase revenues, Democrats have to get off the notion that we are not going to look at entitlement programs,” such as Social Security and Medicare, he said. There needs to be discussion about how to make the programs sustainable. If the president and members of the Senate and House “can’t figure out how to achieve a combination of revenue increases and spending reductions, you’ve got the wrong people in Washington, DC,” he said.

Policy Expert Predicts Tax Reform Will Be Addressed

“T

his is the first time since 1985 that we have had a sequester go into effect,” said G. William Hoagland, former staff director for the Senate Budget Committee, and budget cuts are going right down to the bone marrow. Senior vice president with the Bipartisan Policy Center, Hoagland noted that it has been a tough two years, and federal employment has declined each year for the last two years, with a loss of 163,000 federal jobs. “We went from the largest surplus ever recorded in our country to the largest deficit (post 9/11),” said Hoagland, who pointed out that the statutory debt limit will be reached on May 18. The Treasury Secretary will have certain authorities to keep the federal government in operation – a process that he said is likely to continue up to the August congressional recess. “What bothers me is the public debt – about $12 trillion,” said Hoagland. He quoted former Sen. Alan K. Simpson, who said that, if China

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were to attack Taiwan, we would have to go to war with China. Today, we would have to borrow from China to go to war with China. While we have reduced the debt by $2.4 trillion, nearly all of it is on the Above: Steven C. LaTourette spending side, Hoagland said. “The presiBELOW: G. William Hoagland dent is right: To be achieved, we need to (Photos by Margaret Carter) do more on the revenue side.” While the House does not intend to raise any more revenues, Hoagland said that it will take on tax reform, and there is only one way to do it – through exclusions, credits and deductions. Possibilities include the exclusion of employers’ health insurance contributions, charitable deductions and a change in the home mortgage interest deduction. Despite the polarization in Congress, he predicted that the budget gap will be bridged. He quoted Winston Churchill, who said: “You can always count on the Americans to do the right thing, after they’ve tried everything else.”

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guaranteed not to leak. The high 17” seat enables you to sit comfortably while you bathe and to access the easy-to-reach controls. Best of all, your tub comes with the patented Jacuzzi® PointPro® jet system with a new jet pattern– which gives you a perfectly balanced water-to-air ratio to massage you thoroughly but gently. These high-volume, low-pressure pumps are arranged in a pattern that creates

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MEMBERPLUS MEMBERSHIP FEE WAIVED THRU 12/15/2013 (SAVE $108) * Price shown does not include cost of comprehensive hearing exam. Examination and testing for prescribing hearing aids is covered under the Service Benefit Plan. The Insured may need to submit for reimbursement. Service Benefit Plan members get the TruHearing MemberPlus membership fee waived through December 15, 2013. $108 is the regular yearly cost for the TruHearing MemberPlus membership. Must be a Service Benefit Plan member to access TruHearing MemberPlus discounted pricing. State and Local taxes and/or fees may apply. Prices and products subject to change. ยง The Service Benefit Plan will pay a hearing aid benefit up to $2,500 total every 3 calendar years for adults age 22 and

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Sound too good to be true? Not with Blue. The Service Benefit Plan makes it possible to buy hearing aids through TruHearing for only $10*. For example, the Phonak Audeo S Smart III™ retails for $4,050 per pair. Ouch! But with TruHearing MemberPlus the cost is only $2,190 per pair. Then use your Service Benefit Plan hearing aid benefit of up to $2,500 §, and pay only $10 shipping. For a full list of pricing visit our website at www.truhearing.com.

over. Hearing aid benefits for Service Benefit Plan members up to age 22 is $2,500 every calendar year. (2013 benefit.) Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in the Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items that are covered under your Service Benefit Plan policy or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefits first. To find out what is covered under your policy, contact the Service Benefit Plan. The products and services described herein are neither

offered nor guaranteed under any local Blue company’s contract with the Medicare program. In addition, they are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, BCBSA, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any items and vendors made available through Blue365, at any time. w w w. n a r f e . o r g

THE BLUE CROSS AND BLUE SHIELD ASSOCIATION IS AN ASSOCIATION OF INDEPENDENT, LOCALLY OPERATED BLUE CROSS AND BLUE SHIELD PLANS.

Managing Money

Understanding TSP Beneficiary Rules

hen a surviving spouse chooses to continue an inherited Thrift Savings Plan (TSP) account as a TSP beneficiary participant

account, he or she must follow some quirky rules that may result in thousands of dollars in unnecessary taxes. In some instances, the surviving spouse would be better off transferring the inherited TSP account to an individual retirement account (IRA). Let’s take a look at why that may be. If a spouse inherits a TSP participant account, a TSP beneficiary participant account will be established for the surviving spouse. The beneficiary participant account may look the same, but many of the rules governing the beneficiary participant account are different. For starters, while a participant doesn’t need to worry about required minimum distributions (RMDs) until he or she turns age 70-½, a beneficiary participant may have to start taking RMDs as soon as the year following the year the participant died. If the participant dies before his or her required beginning date (RBD) (April 1 following the year he or she turns age 70-½ or separates from government service, whichever is later), the beneficiary participant must begin taking RMDs by the later of December 31 of the year the deceased owner would have turned age 70-½ or

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December 31 of the year following the year of death. If the participant died on or after the RBD, the beneficiary participant must begin taking annual RMDs by December 31 of the year following the year of the participant’s death. The beneficiary participant also must be sure to take any year of death RMD (based on the deceased participant’s life expectancy) if the participant had not already done so. If the surviving spouse were older than the deceased participant, these RMD rules might be beneficial because the spousal beneficiary may be able to delay any RMDs until well past the date he or she turns age 70-½. For example, if a TSP participant dies at age 65 and leaves his TSP account to his 71-year-old wife, she is not required to take RMDs from her TSP beneficiary participant account until five years later, when her deceased

By Mark A. Keen,

CFP®

husband would have been age 70-½. On the other hand, the beneficiary participant RMD rules may force a younger surviving spouse to take distributions well before the date he or she turns age 70-½. For example, let’s switch the ages in the previous example so that the deceased participant is age 71, and the surviving spouse is age 65. Although the surviving spouse has not yet reached age 70-½, she’ll be required to take minimum distributions starting by December 31 of the year following the year her husband died. This means that the RMDs are starting at age 66 for the surviving spouse, rather than age 70-½. Furthermore, a TSP beneficiary participant’s RMDs are calculated using the IRS’ Single Lifetime Table, which results in much larger RMDs when compared to the Uniform Lifetime Table TSP participants get to use. For example, assuming a $250,000 account balance, the RMD for a 70-year-old participant using the Uniform Lifetime Table is $9,124, whereas the RMD for a 70-year-old beneficiary participant is $14,706 – 60 percent more! These rules result in larger distributions at potentially earlier ages. If the surviving spouse doesn’t need the money, he or she is forced to pay unnec-

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

essary taxes and will lose out on future tax-advantaged growth. Perhaps one of the most detrimental outcomes occurs when a beneficiary participant dies with money remaining in the TSP beneficiary participant account. In this situation, a beneficiary of a beneficiary participant has no choice but to take a lump-sum distribution from the inherited TSP beneficiary participant account. The distribu-

tion cannot be transferred to a beneficiary IRA, so it’s fully taxable, and any future tax deferral is lost forever. Any Roth money in the TSP account would be distributed tax-free; however, the benefits of a tax-free account are gone. If it is financially advantageous to do so, the surviving spouse may want to transfer the inherited TSP account to an IRA of his or her own. He or she will then be subject to the RMD rules for account owners, including RMDs based on the more favorable Uniform Lifetime Table. In addition, the surviving spouse will be able to pass the tax-advantaged account down to future generations. Mark A. Keen, CFP®, is partner, Keen & Pocock, 10300 Eaton place, Fairfax, VA, and an investment adviser representative and registered principal of The Strategic Financial Alliance, Inc. (SFA). Securities and advisory services are offered through SFA. Email: mkeen@keenpocock.com.

Travel with other NARFE Members to the 125th Rose Parade!

Plus... Coastal California Tour 11 Days $1458* from

Departs: December 29, 2013 Enjoy the best New Year’s Eve and New Year’s Day you have had in years with YMT at the Rose Parade plus an exciting adventure up the California coast to San Francisco! Begin in the “City of Angels” that includes a tour of Los Angeles, Hollywood and Beverly Hills. Attend a VIP presentation on the history and traditions of the Rose Parade, plus an exclusive, pre-parade, after public hours, float building and viewing at the Rosemont Pavilion with included dinner. Then on Wednesday, January 1, 2014, observe the Rose Parade from your reserved YMT grand stand seats! On Friday, January 3, depart for Central California. Visit the beach community of Santa Barbara and its Camino Real Mission; the Danish Village of Solvang; tour the world renowned Hearst Castle, with its considerable collection of art and antiques and travel the scenic Big Sur and famous Highway One, to Monterey. Your last stop is San Francisco with a city tour including a trip over the Golden Gate Bridge and back, plus a ferry trip and tour of Alcatraz Island. * Price per person, based on double occupancy. 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

Decoding Your Magazine label

he mailing label on your issue of narfe magazine provides a new tool for NARFE members. For the first time, this month’s label shows the congressional district in which you reside (see illustration below). This should be the congressional district in which you voted during the primary and general elections in 2012. Decoding Your Label On the second line under the barcode on your label, your eight-digit NARFE membership identification number appears following the letters ID. Next come the letters CH and four digits, indicating your NARFE chapter. Then there are two letters and two numerals. The letters will, in most cases, be the postal code for your state or territory, and the numerals may range from 01 through 53. These indicate your congressional district. For instance, CA22 denotes California’s 22nd Congressional District. If you are a snowbird who lingered past Spring Training, your temporary Florida or Arizona address should not have affected your congressional district assignment based on a permanent address. Omission or Incorrect Assignment As in baseball, errors do occur. One good test is to insert your new congressional district assignment at a website that will list both the current member of Congress and the person

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who represented that congressional district until January 3, 2013. The best website is www. my2012district.com/. This site also shows maps before and after redistricting. Interactive maps allow you to drill down to the street level. Should your label prove incorrect, contact the NARFE Legislative Department staff. NARFE Reports and OAM For NARFE chapter and federation officers, the quarterly Officers Roster (M-111) will show updated congressional district assignments. Finally, federation officers will have a tool to connect chapters sharing the same representative. Even more important, the NARFE Online Activities Module (OAM) on the NARFE website, www.narfe.org,

By Christopher Farrell, Legislative Representative

allows chapter officers to know which members are in which congressional districts. District and federation officers must coordinate multiple chapters that share a representative. In this crucial task, the NARFE legislative staff is eager to help. Profiles Available In addition to our newly published Congressional Directory: 113th Congress 2013-2014 (see ad, p. 10), our frequently updated Legislative Action Center allows NARFE members to access revised advocacy templates and biographical information on each member of Congress. Unique to the Legislative Action Center is the ability to easily display the votes cast by your congressional delegation on the most important NARFE issues. This web resource updates the “How They Voted” article from the centerfold of the October issue of narfe magazine. The gateway to “Key Votes” is capwiz. com/narfe/keyvotes.xc/?lvl=C. A less well-known feature of this website allows for the display of an entire state delegation’s votes on a bill or an amendment.

| || | | || | | || | | || || | || | | || || || | || || | ||| || | |||||| |||| | ||| || | ||| ||||| ||| ||| ||||| | |||||| || | |||| |||||| | |||||| |||||||

#BXBBKNY ****************CAR-RT LOT**R-020 #01234567 2# ID 01234567 CH0123 CA22 JA2 NARF1 0010 #421 #107266 MR JOHN SAMPLE 20 PRIMROSE LANE CLOVIS, CA 93619-9830

Decoding your magazine label The postal code for your state and your congressional district your NARFE chapter Your NARFE membership identification number

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For the Record

Thrift Savings Plan Monthly Returns

Domestic funds tally big gains; International lags

2013

by Tracey Ray

G FUND

F FUND

C FUND

S FUND

I FUND

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%

The C and S Funds continued their string of positive returns in March. Both have now been up for five months in a row. The I Fund increased in value as well, but its returns are being held back by the economic situation in Europe. While the C and S Funds are up more than 10 percent for 2013, the I Fund has returned just under 5 percent. The F Fund had been outperforming the G Fund for a while, but for the last six months, it is basically unchanged.

OCTOBER

0.12%

0.20%

(1.86%)

(1.31%)

0.85%

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

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%

FEBRUARY

0.13%

0.51%

1.36%

1.00%

(0.99%)

March

0.13%

0.07%

3.75%

4.69%

0.88%

YTD

0.38%

0.01%

10.61%

13.09%

4.34%

LAST 12 MO

1.46%

3.98%

13.98%

17.16%

11.59%

L INCOME

L 2020

L 2030

L 2040

L 2050

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

0.62%

1.52%

1.87%

2.12%

2.38%

2013

OCTOBER

Countdown to COLA

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.0 percent in February. 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 third-quarter average of 226.936. That percentage increase, if any, determines the COLA. The February index of 228.677 is up 0.77 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. February’s index is 1.23 percent higher than the December 2012 base index of 225.889. 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.

(0.11%)

(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%

FEBRUARY

0.27%

0.41%

0.49%

0.54%

0.56%

MARCH

0.73%

1.69%

2.12%

2.44%

2.71%

YTD

2.11%

5.00%

6.28%

7.23%

8.07%

October 2012

LAST 12 MO

4.15%

8.42%

10.22%

11.55%

12.72%

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

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

January 2013

226.520

+0.3

-0.18

February

228.677

+1.0

+0.77

Month

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.) 48

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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 February 28, 2013 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) Email: ajrodgers@tds.net

$10,213,831* 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

take note: cards are in the mail!

Celebrate YOur service

ublic Service Recognition Week (PSRW) will be celebrated May 5-11. The theme of this year’s observance is “Why I Serve.” PSRW honors the men and women who serve our nation as federal, state, county and local government employees. It is organized annually by the Public Employees Roundtable and its member organiLife Membership Apl_New Design 3/26/13 zations, including NARFE.

Throughout the country, governments and organizations participate through proclamations, awards ceremonies and tribute events. The PSRW website, www. psrw.org, has a “How to Celebrate PSRW Guide” that NARFE chapters might find helpful in organizing a commemoration or event. New this year to PSRW is a 5K 3:49 PM Page 1 run/walk in Washington, DC, spon-

NARFE’s annual notecard fundraising campaign is in full swing. If they haven’t already, members soon should be receiving a set of notecards and address labels, courtesy of NARFE. The cards, which feature photographs taken by NARFE members, include birthday, sympathy and “thinking of you” sentiments, along with a blank card. NARFE hopes members will return a voluntary donation in the enclosed envelope.

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

sored by many federal employee/ retiree organizations, including NARFE. Proceeds from the race will benefit the Federal Employee Education and Assistance Fund.

NARFE NATIONAL LIFE MEMBERSHIP APPLICATION Life Membership Fee Schedule Ages

Contact Information n Mr. n Mrs. n Miss n Ms. Full Name _____________________________________________ Street Address _________________________________________ Apt./Unit______________________________________________ City _______________________ State _____ ZIP _____________ Phone (__________) ____________________________________ Email_________________________________________________ Date of Birth _________ /_________ /___________________ dd

yyyy

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

Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin. Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes. 50

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Single or Quarterly Payment Installments 30-39 $1,796 $450.25 40-50 1,408 353.25 51-55 1,127 283.00 56-60 960 241.25 61-65 801 201.50 66-70 653 164.50 71-75 514 129.75 76-80 392 99.25 81-90 251 64.00 91-100+ 127 33.00

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

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

yyyy

Name on Card ______________________________________ Signature ____________________________ Date ________ MAIL THIS APPLICATION TO NARFE Member Records 606 N. Washington St. / Alexandria, VA 22314-1914

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 ■ American Express ■ Discover 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)

Safety never felt so good

™

N THE U.S.A EI

MA D

LIFETIME LIMITED WARRANTY

W IT

Safe Step Tubs have received the Ease-of-Use Commendation from the Arthritis Foundation

H P RID

Financing available with approved credit

A Safe Step Walk-In Tub will offer independence to those seeking a safe and easy way to bathe right in the convenience and comfort of their own home. Constructed and built right here in America for safety and durability from the ground up, and with more standard features than any other tub.

✓ A carefully engineered dual hydro-massage and air bubble jets– both strategically placed to target sore muscles and joints, offering life-changing therapeutic relief

✓ A built-in support bar and the industry’s leading low step-in

www.safesteptub.com

✓ The highest quality tub complete with a lifetime warranty ✓ Top-of-the-line installation and service, all included at one low, affordable price You’ll agree – there just isn’t a better walk-in tub on the market. So take your first step towards feeling great and stay in the home you love. Give us a call today!

Call Today Toll-Free1-800-514-8773 for your FREE information kit and DVD, and our Senior Discounts

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 54

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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 51: 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

In service to service men and women This photograph of the Veterans Bureau correspondence department was taken on May 20, 1924. Correspondence often requested additional information from veterans to complete processing of claims. In 1930, the Veterans Bureau became the Veterans Administration and, in 1989, officially became the Department of Veterans Affairs. Photo courtesy of the Library of Congress; Darlene Richardson, historian, U.S. Department of Veterans Affairs; 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.

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Are you a Department of Veterans Affairs 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 N tra on C

100 FREE Minutes

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

Lo FREE Car Charger

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! 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.

Monthly Minutes

Basic 14

Basic 19

was 100 NOW 200

$14.99

$19.99

Operator Assistance

24/7

911 Access

FREE

No add’l charge

FREE

YES

30 days

Monthly Rate

Long Distance Calls Voice Dial Nationwide Coverage Friendly Return Policy

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

you are not locked in for years at a time and won’t be subject to early termination fees. 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.

Call now and receive 100 FREE Minutes and FREE Car Charger – a $41.98 value. Try the Jitterbug The rate plans are simple too. Why pay for Available in Plus for yourself for 30 days and minutes you’ll never use? There are Silver and Red. if you don’t love it, just return it for a a variety of affordable plans. Plus, you don’t have refund1 of the product purchase price. Call now – helpful Jitterbug to worry about finding yourself stuck with no minutes– that’s the experts are ready to answer your questions. problem with prepaid phones. Since there is no contract to sign,

Order now and receive 100 Free Minutes and a Car Charger for your Jitterbug – a $41.98 value. Call now!

Jitterbug Plus Cell Phone

Call today to get your own Jitterbug Plus. Please mention promotional code 46587.

1-888-824-1471

We proudly accept the following credit cards.

47578

www.jitterbugdirect.com

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

Khaki

You’ll Love the Comfort!

Full Elastic Waist with Front Zipper & Snap Close!

Waist gives & takes with your every move! Lightweight, quick-dry cotton & polyester is Machine Wash & Wear! CHECK OUT THESE FEATURES: • 4 Deep No-Hole pockets • Snap Closure • Indestructible Nylon Zipper Fly • Extra Sturdy Belt Loops • Convenient Golfer’s Locker Loop!

Black

2 Big Side Pockets! 2 Button-Flap Back Pockets!

XS INSEAMS! WAISTS TO 60! If you wonder how other men look so good, ask them about Haband! Better yet, see for yourself! Fast, Reliable Service! Hurry!

Grey

Belt Loops too, including Center Back!

Dusty Rose

Brown

Black

Green

pairs for only

3 for 42.97

Cadet Blue Blue

FREE!

In GA add sales tax.

s All Size

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Matching Shirts

2E Ø1 Ø6 Ø4 5J

11.99 each

Handsome vertical striping makes you look slimmer! Rib knit collar, roomy fit, handy chest pocket and banded bottom. Dyed to match the pants. Stretchy cotton/polyester knit. Imported. 100% Wash & Wear. Sizes: S(34-36) M(38-40) L(42-44) XL(46-48) 2XL(50-52) 3XL(54-56) 4XL(58-60) When you pay by check, you authorize us to use information from your check to clear it electronically. Funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.

4 for 55.95

5 for 67.87

Haband #1 Bargain Place, Jessup, PA 18434-1834 Send _____ shirts & _____ slacks. I enclose FOR MAXIMUM COMFORT, ORDER YOUR USUAL WAIST SIZE! Waists: 32 34 36 38 40 42 44 $________ purchase *Big Men ($5 more per pair): 46 48 50 52 54 56 58 60 price plus $7.99 Inseams: XS(25-26) S(27-28) M(29-30) L(31-32) shipping. SLACKS

7F7–Ø758K

KHAKI BLACK GREY BROWN CADET BLUE

XL(33-34) (XL inseam available in 32-44 waists only)

2 for $29.99* WHAT WHAT HOW WAIST? INSEAM? MANY?

SHIRTS

Ø1 11 Ø2 Ø5 EB

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each

WHAT HOW SIZE? MANY?

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Haband Blair Visa MasterCard Discover® Network AmEx Check Card # _________________________________________Exp.: ______/_____ 100% Satisfaction Mr. Mrs. Ms. ____________________________________________________ Guaranteed Address____________________________________________ Apt. # ______ or Full Refund City & State ______________________________________ Zip ___________ of merchandise #1 Bargain Place Jessup, PA 18434

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Tan

purchase price.

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