May 2020 NARFE Magazine by NARFE

MAY

’20

COVER STORY

CHOOSING A RETIREMENT COMMUNITY ALSO IN THIS ISSUE

Volume 96 • Number 5

SHOULD I STAY OR SHOULD I GO?

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MAY

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WASHINGTON WATCH

Learn More About GPO and WEP in NARFE’s May 14 Webinar

New Rule Changes TSP Annuity COLA Calculation

NARFE Celebrates Public Service Recognition Week Throughout the Country

Federal Workers Take on Coronavirus

OPM Makes Sensible Updates to Time-to-Hire Guidance

Bill Tracker

COVER STORY CHOOSING A RETIREMENT COMMUNITY David Tobenkin details different types of senior living arrangements and considerations for choosing among them.

COLUMNS

From the President

40 Managing Money DEPARTMENTS

SHOULD I STAY OR SHOULD I GO? Everett Chasen describes what happens to your benefits if you decide to leave federal employment before retirement.

Questions & Answers

42 For the Record 44 NARFE News 46 Member Perks 48 The Way We Worked

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On the Web VISIT US ONLINE AT:

www.narfe.org LIKE US ON FACEBOOK:

NARFE National Headquarters

COVER STORY

CHOOSING A RETIREMENT COMMMUNITY ALSO IN THIS ISSUE

Volume 96 • Number 5

SHOULD I STAY OR SHOULD I GO?

ON THE C OVER Illustration by GRAPHEK

@narfehq

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

MAY 2020 | Volume 96 | Number 5

EDITORIAL DIRECTOR Helen Mosher SENIOR EDITOR Mabel Yu CREATIVE SERVICES MANAGER Beth Bedard COMMUNICATIONS ASSISTANT Precious Dorch-Robinson ADDITIONAL GRAPHIC DESIGN GRAPHEK EDITORIAL BOARD Kenneth J. Thomas, Kathryn E. Hensley, Barbara Sido CONTACT US NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Editorial: communications@narfe.org Advertising Sales: Anita Nelson advertising@narfe.org NARFE FOR THE VISUALLY IMPAIRED ON THE TELEPHONE: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-504-7300 or go to www.nfbnewsline.org. ON DIGITAL AUDIO: Issues of NARFE Magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider. The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

NATIONAL OFFICERS KENNETH J. THOMAS President; natpres@narfe.org KATHRYN E. HENSLEY Secretary/Treasurer; natsectreas@narfe.org EXECUTIVE DIRECTOR BARBARA SIDO, execdir@narfe.org

REGIONAL VICE PRESIDENTS

REGION I James C. Risner (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) TEL: 207-540-6233 EMAIL: rvp1@narfe.org REGION II Kathy Adams (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) TEL: 302-697-6650. CELL: 302-561-5660 EMAIL: adamskhawaii@aol.com REGION III Clarence Robinson (Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 EMAIL: crobin8145@att.net

REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: pappysdad@cobridge.tv REGION VII Rodney L. Adelman (Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: narfe7vp@cox.net REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) TEL: 707-644-7565 EMAIL: hlzajac125@gmail.com

REGION IV Robert L. Helfrich (Illinois, Indiana, Michigan, Ohio and Wisconsin) TEL: 317-501-1700 EMAIL: rvp4@narfe.org

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

REGION V Cindy Reneé Blythe (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) TEL: 785-256-1450 EMAIL: mrsdocbusyb@yahoo.com

REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) TEL: 703-830-6590, CELL: 703-201-6304 EMAIL: rvp10@narfe.org

HERE’S HOW TO CONTACT US… TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER:

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

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

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narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $40. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2019, 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 Magazine, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President

PUBLIC SERVICE RECOGNITION

his month, NARFE will embark on a special mission–recognizing the service of federal employees.

While NARFE works every day to raise awareness about the value of public servants and the nobility of civil service, this annual commemoration allows us to amplify our voice as an organization and as passionate advocates across the country. Those of us who currently work as a federal employee or did so at one time know well the significant contributions of millions of behindthe-scenes workers who implement federal policy and programs. Civil servants help make this country the symbol of strength that it is today. And as we persevere through the worst public health crisis this country has faced in decades, federal agencies are in the spotlight every day. NARFE asks you to recognize the service of these and all federal employees, especially during Public Service Recognition Week, which takes place May 3-9 this year. NARFE members across the country will celebrate civil

NARFE’s Mission Statement To support legislation and regulations beneficial to federal civilian employees and annuitants and potential annuitants under any federal civilian retirement system and to oppose those detrimental to their interests. To promote the general welfare of federal civilian employees and annuitants and potential annuitants, to advise and assist them with respect to their rights under retirement, health and other employee and retiree benefits laws and regulations, and to represent their interests before appropriate authorities. To cooperate with other organizations and associations in furtherance of these general objectives.

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servants through community events, local and state government proclamations, and other unique activities that express appreciation for the work they do to protect and provide critical assistance to the American people. And while some of the events—including FEEA’s annual Public Service Walk/Run— aren’t happening this year due to safety concerns arising from the coronavirus, there are still ways to participate in Public Service Recognition Week. At press time, NARFE National Headquarters is closed, but its communications and advocacy teams are still hard at work—from the safety of their homes—getting this issue of the magazine out and preparing for NARFE’s popular nationwide Letter-to-the-Editor campaign, in which members can submit customized letters to the editors of their local news outlets and publications via NARFE’s website. Using email and social media, share stories with friends and family about the important work federal employees do. Don’t pass up the opportunity to spread the word about public service. Whatever activity you choose, we encourage you to share your experience as a Fed. We should all show our appreciation for public servants—and not just during Public Service Recognition Week. To all the men and women who work on our behalf at the federal, state and local levels of government, thank you.

KENNETH J. THOMAS NARFE NATIONAL PRESIDENT natpres@narfe.org

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Washington Watch

LEARN MORE ABOUT GPO AND WEP IN NARFE’S MAY 14 WEBINAR

he Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) reduce the Social Security benefits of 2,620,585 retired workers, workers

with disabilities, spouses and children across the United States, according to the Congressional Research Service. WEP, the more pervasive of the two laws, reduces the Social Security benefits of local, state and federal retirees who worked in Social Security-covered employment (e.g., private-sector jobs) and who also receive a government annuity from their non-Social Security covered government employment. In 2020, WEP can result in a monthly benefit that is $480 lower than it would be under the regular benefit formula. This policy causes a disproportionate reduction in benefits for workers with lower monthly benefit amounts than those with higher benefit amounts. WEP applies to federal retirees who began their federal employment prior to 1983 and are covered by the Civil Service Retirement System (CSRS). WEP does not apply to federal

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employees covered by the Federal Employees Retirement System (FERS) because they earn Social Security benefits based on their government work. GPO, on the other hand, became effective for government employees who were first eligible to retire in December 1982. The law requires that two-thirds of the government annuity offsets whatever Social Security benefits

ACTION ALERT!

would be payable to the retired government worker as a spouse. This reduces an affected Social Security benefit by two-thirds, and in many cases, it eliminates the benefit entirely. In addition to CSRS annuitants, GPO and WEP affect thousands of state and municipal retirees, as well as teachers and police officers whose work is not covered by Social Security. Over the years, numerous legislative solutions have been proposed to take on the pair. In the 116th Congress, bills addressing the WEP and/or GPO fall into two categories: reform or repeal. Reform of WEP is one of NARFE’s top legislative priorities

MAY

We need your help! NARFE is calling on members of Congress to cosponsor WEP reform bills introduced in the House and Senate. Contact your legislators today and urge them to cosponsor H.R. 4540 and H.R. 3934/S. 3401. Congress needs to work toward bipartisan legislation that would bring relief to the 1.9 million retirees shortchanged by WEP each month. Visit NARFE’s Legislative Action Center, on the NARFE website, to send a personalized message to your lawmakers.

for 2020. There are currently two reform bills—H.R. 3934/S. 3401, the Equal Treatment of Public Servants Act; and H.R. 4540, Public Servants Protection and Fairness Act—and both apply similar constructs. Each provides a rebate for those currently eligible for Social Security benefits and the same new formula for those becoming eligible in the future.

However, there are a few notable differences between the bills. NARFE’s May 14 webinar, “GPO and WEP: Understanding the Evil Twins,” will take an in-depth look at reform and repeal legislation, and NARFE’s plan to advance a solution. GPO and WEP are complicated topics, and this webinar will help you better understand how the provisions affect you.

NARFE also supports the Social Security Fairness Act, H.R. 141/S. 521, which would fully repeal the two offsets. NARFE continues to work with its allies to provide relief to federal retirees affected by the unfair penalties. Don’t forget to tune in to NARFE’s May 14 webinar at 2 p.m. ET for a detailed look at the provisions. — BY SETH ICKES, GRASSROOTS ASSISTANT

NEW RULE CHANGES TSP ANNUITY COLA CALCULATION

he Federal Retirement Thrift Investment Board (FRTIB) issued a new rule changing how it will calculate cost-of-living adjustments (COLAs) for individuals choosing to withdrawal their Thrift Savings Plan (TSP) funds via a lifetime annuity with an annual COLA option. This won’t change COLAs to your federal retirement annuities under the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). It’s also not a reduction in the value of anyone’s TSP account. In fact, it should leave TSP participants who choose an annuity withdrawal option better off. When a TSP participant elects to receive TSP funds through an annuity—a monthly payment for the rest of the participant’s life—the TSP purchases it from its annuity vendor. The vendor calculates the monthly payment based on

the amount of funds provided, the participant’s age and life expectancy tables, interest rates, and whether a COLA option has been selected. Currently, the COLA option is calculated at a variable rate based on the annual change in the specified Consumer Price Index (CPI). However, the COLA is capped at 3 percent. The vendor has priced the annuity based on a 3 percent annual increase, even though inflation has averaged less than 3 percent over the last 20 years. The new rule changes the calculation from a variable rate capped at 3 percent to a fixed rate of 2 percent. FRTIB estimates that the switch will increase a participant’s initial monthly annuity by 10 to 15 percent. While the COLA will offer less inflation protection, it will provide a more predictable increase in the annuity and prevent participants from paying more (through a lower

initial annuity) for inflation protection than they will receive (when inflation is less than 3 percent). (Continued on p.10)

MYTH vs. REALITY Myth: NARFE endorses congressional and presidential candidates.

Reality: NARFE, as an organization, does not endorse congressional or presidential candidates. The association’s political action committee, NARFEPAC, contributes to some congressional candidates but does not contribute to presidential candidates.

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

Washington Watch

NARFE CELEBRATES PUBLIC SERVICE RECOGNITION WEEK THROUGHOUT THE COUNTRY

oin NARFE in celebrating Public Service Recognition Week (PSRW) May 3-9. As representatives of active and retired civil servants, NARFE marks PSRW with several events, most notably its annual PSRW Letter-to-the-Editor campaign. During this week, NARFE members are encouraged to write letters to their hometown newspapers, recognizing local public servants for the invaluable work they perform daily. To make this process efficient for its members, NARFE has set up the campaign in its Legislative Action Center, which can be accessed at www.narfe. org/legislation. The template messages can be individualized and sent directly to your area newspaper. Civil servants keep our public transportation systems and roadways safe; ensure medicines are objectively evaluated and researched for public safety and effectiveness; protect the nation’s water supply; alert the public about life-threatening storms; and are always ready to respond when lives are in danger. Others, like the country’s military members, travel to faraway places to protect Americans and our allies; some sacrifice their lives to save ours. Civil servants are America’s heartbeat, and these are just some of the ways they serve the public daily at the federal, state and local levels. Yet their remarkable work sometimes goes unnoticed, taken for granted by the very people who benefit from their actions.

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Since 1985, the first week of May has been set aside to highlight outstanding public service. It is a celebration of individuals and teams who demonstrate integrity, diversity, innovation, energy, enthusiasm and the courage to lead their government. This year marks 36 years of honoring public service. PSRW engages citizens in activities to better acquaint them with civil service work. Throughout the country, mayors, governors, agency leaders, communities and public service organizations issue proclamations, host award ceremonies and special tribute events, and deliver messages about the value of public service. Please note that many activities may be subject to cancellation or schedule changes due to COVID‑19 measures. Other possible activities include public service recruitment workshops, a “Salute to Public Service Game” from the Washington Nationals baseball team, charity races/walks and ice cream socials. This week also honors federal retirees, veterans who have transitioned to civil service, and federal employees who have fallen while serving the American people. To access a list of activities in your community and throughout the country, visit the PSRW website at https://psrw.ourpublicservice. org. In addition to writing letters to the editor and attending events in the community, NARFE members can use social media to engage family, friends and

colleagues in their network in celebrations during PSRW. Simply posting a message on social media honoring public servants and encouraging people in your network to share it is a great way to bring attention to PSRW. Volunteering is another way to show gratitude to your community’s public servants. NARFE celebrates America’s civil servants and thanks all of you for honoring them every day. —BY MARSHA PADILLA-GOAD, GRASSROOTS PROGRAM MANAGER

NARFE GRASSROOTS ADVOCACY Learn more about how you can take action to protect your earned pay and benefits by reviewing NARFE Grassroots materials at www.narfe.org/ legislation.

FEDERAL WORKERS TAKE ON CORONAVIRUS

s of press time, the novel coronavirus, COVID-19, has caused the federal government and individual states to take drastic action to reduce transmission and keep people healthy. Schools, restaurants and other social gatherings have shut down in many places, and people have been asked to socially distance themselves to slow the spread of the virus. Workers, including federal employees, are working remotely where able. We hope that by the time you read this, the spread has slowed and life has started to return to normal. These unprecedented times call for our nation’s best and brightest to tackle the issue at hand. Brave and dedicated health care workers are tending to the sick, and health officials in the

federal government are informing the public about how to stay safe. NARFE commends these civil servants on the front lines. The Centers for Disease Control and Prevention (CDC) is just one of the federal departments taking on the

coronavirus. Founded in 1946, the CDC is one of our country’s leading national public-health institutions and has attracted experts in the health field from all over the world. As such, the CDC has been serving as (Continued on p.10)

OPM MAKES SENSIBLE UPDATES TO TIME-TO-HIRE GUIDANCE

iring federal workers is a notoriously long and complicated process for agencies and applicants. For over a decade, the Office of Personnel Management (OPM) has been working to expedite the process. As the leader of recruitment and retention for the federal government, OPM captures timeto-hire data in its efforts to make hiring as efficient as possible. The agency uses this data to update its time-to-hire guidance, and then-OPM Director Dale Cabaniss believed the February 2020 changes would give “agencies a clearer picture on hiring practices

so they can better accomplish their mission and provide service to the American people.” OPM updated its reporting requirements with two changes. The first requires time-to-hire to be counted for all hires; previously, only hires who began the process from a USAJOBS announcement were counted. Second, agencies will now report the time from when a hiring need is validated to when a job offer is extended to an employee, in addition to the already counted time from the hiring need to the actual start date. OPM expects the changes will better capture

the total number of new hires and better account for time outside of agencies’ control. OPM’s goal, which agencies have yet to meet, is to reduce the average government-wide hiring time to 80 days. In fiscal year 2018 (FY18), the average time-to-hire was 98.3 days, an improvement over 105.8 days in FY17. An efficient recruitment process is more likely to attract new hires, which the federal government desperately needs. According to the Congressional Budget Office the average age of a federal employee is 46. —BY SETH ICKES, GRASSROOTS ASSISTANT W W W. N A R F E . O R G

Washington Watch

(Continued from p. 9) a steady hand in the face of this pandemic. Its employees provide the latest information on the virus and actions that people can take to protect themselves. Like many federal employees, workers at the CDC have spent their careers guiding the nation through tough situations. The CDC deployed employees to numerous airports to screen individuals returning from countries affected by the coronavirus. Additional teams were sent to states where the first cases of the virus were detected to give doctors and health departments treatment recommendations. Initial testing for the virus was also conducted by the CDC. CDC employees prepared first responders, health care providers and health systems to deal with a surge in demand for medical care. Center employees have also been working with providers and supply chain partners to conserve medical supplies. The work hasn’t stopped there. The CDC is a trusted source of reliable and up-todate information on the

(Continued from p. 7) In its rationale for the rule, FRTIB justified the use of a 2 percent fixed rate, explaining, “The Federal Open Market Committee (FOMC) has set an inflation target of 2 percent and implements that target over the medium term. Indeed, over the last 20 years, inflation, as measured by the CPI, has

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virus, providing infection control guidance, hospital preparedness assessments, and the latest on personal protective equipment supply planning. It continues to disseminate information to the public and stakeholders to help recognize when shifts in strategy are needed. Other federal agencies are also closely involved. The National Institutes of Health (NIH) and the Food and Drug Administration (FDA) have been working on longer-term goals, such as creating a vaccine and improving treatment. Meanwhile, preparation for vaccine deployment is taking place, even though development of a vaccine takes considerable time. USAID is administering financial assistance across the globe, as directed, to “governments of currently affected or at-risk developing countries [to] prepare their laboratories for largescale testing for COVID-19, implement a public-health emergency plan for points of entry, activate case finding and event-based surveillance for inf luenza-like illnesses, train and equip rapid-response teams, investigate cases and trace the contacts of infected

averaged 1.95 percent annually, which is the expected result given the FOMC inflation target.” NARFE supports the new rule and provided feedback to FRTIB on its draft proposal. The rule took effect on March 1, 2020. —BY JOHN HATTON, DIRECTOR OF LEGISLATIVE AND POLITICAL AFFAIRS

persons, and adapt training materials for health workers on COVID-19.” It’s an all-hands-on-deck situation, and employees within Customs and Border Protection and the Transportation Security Administration have been assisting with health screenings and information sharing. As of press time, Congress and the White House had agreed on a stimulus package in the wake of the virus and the associated economic downturn. As a result, federal employees now are tasked with assisting Americans who have felt the pain caused by the pandemic. Federal workers across many agencies are leading and providing the oversight necessary to take on this public health crisis. The spreading of a new virus is difficult to combat, but federal employees are here to respond and serve the country. — BY ROSS APTER, POLITICAL ASSOCIATE

LEGISLATIVE RESOURCES • NARFE NewsLine: A weekly newsletter that goes out to NARFE members on Tuesdays and includes weekly recaps of legislative news, compiled by NARFE’s advocacy and communications teams. • Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.

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

THRIFT SAVINGS PLAN

BILL NUMBER / NAME / SPONSOR H.R. 5018/S. 2791: Taxpayers and Savers Protection (TSP) Act / Rep. Mark Meadows, R-NC / Sen. Marco Rubio, R-FL

WHAT BILL WOULD DO Removes Chinese companies from the Thrift Savings Plan international fund, putting investors at a distinct disadvantage compared to private-sector retirement funds.

Cosponsors: H.R. 5018: 0 (D) 16 (R) S. 2791: 2 (D) 5 (R)

LATEST ACTION(S) Referred to the House Committee on Oversight and Reform (H.R. 5018) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 2791)

H.Res. 23: Rep. Susan Davis, D-CA

Expresses the sense of the Referred to the House House that the United States Committee on OverPostal Service should take all sight and Reform Cosponsors: 207 (D) 54 (R) appropriate measures to ensure the continuation of door delivery for all business and residential customers. H.Res. 33/S.Res. 99 Rep. Stephen Lynch, D-MA / Sen. Gary Peters, D-MI Cosponsors: H.Res. 33: 225 (D) 42 (R) S.Res. 99: 44 (D) 8 (R) 2 (I)

POSTAL REFORM

H.Res. 54: Rep. Gerald Connolly, D-VA Cosponsors: 217 (D) 75 (R)

H.Res. 60: Rep. David McKinley, R-WV Cosponsors: 180 (D) 26 (R)

H.R. 2382/S. 2965: USPS Fairness Act / Rep. Peter DeFazio, D-OR / Sen. Steve Daines, R-MT

Expresses the sense of the House that Congress should take all appropriate measures to ensure that the United States Postal Service remains an independent establishment of the federal government and is not subject to privatization.

Referred to the House Committee on Oversight and Reform (H.Res. 33)

Expresses the sense of the House that the United States Postal Service should take all appropriate measures to ensure the continuation of its six-day mail delivery service.

Referred to the House Committee on Oversight and Reform

Expresses the sense of the House that the United States Postal Service should take all appropriate measures to restore service standards in effect as of July 1, 2012.

Referred to the House Committee on Oversight and Reform

Repeals the USPSâ&#x20AC;&#x2122; prefunding requirement.

Passed the House of Representatives 309-106 (H.R. 2382) on February 5, 2020 / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 2965)

H.R. 2382: 232 (D) 69 (R) S. 2965: 2 (D) 3 (R)

NARFEâ&#x20AC;&#x2122;s Position:

Support

Referred to the Senate Committee on Homeland Security and Governmental Affairs (S.Res. 99)

Oppose

No position

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

Washington Watch

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

ISSUE

BILL NUMBER / NAME / SPONSOR H.R. 141/S. 521 Social Security Fairness Act of 2019 / Rep. Rodney Davis, R-IL / Sen. Sherrod Brown, D-OH

WHAT BILL WOULD DO Repeals both the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).

Referred to the House Committee on Ways and Means (H.R. 141)

Reforms the Windfall Elimination Provision (WEP), to provide WEP-affected individuals who are eligible for benefits before 2022 a $100 monthly rebate and $50 for an affected spouse. Changes the WEP calculation moving forward.

Referred to the House Committee on Ways and Means (H.R. 3934)

Cosponsors: H.R. 141: 186 (D) 59 (R) S. 521: 31 (D) 5 (R) 2 (I)

GPO/WEP

H.R. 3934/S. 340 The Equal Treatment of Public Servants Act / Rep. Kevin Brady, R-TX / Sen. Ted Cruz, R-TX Cosponsors: H.R. 3934: 41 (D) 3 (R) S. 340: 1 (R)

Referred to the Senate Committee on Finance (S. 340) Referred to the House Committee on Ways and Means

H.R. 1254: The Equal COLA Act / Rep. Gerry Connolly, D-VA

Provides Federal Employees Retirement System (FERS) retirees with the same annual cost-of-living adjustment (COLA) as Civil Service Retirement System (CSRS) retirees.

Referred to the House Committee on Oversight and Reform

Requires Social Security and federal retirement programs to use the Consumer Price Index for the Elderly (CPIE) to calculate cost-of-living adjustments (COLAs) to retirement benefits.

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

Allows federal employees who started their careers in temporary positions before transitioning into permanent roles to retroactively contribute toward their retirement for the years they held a temporary position.

Referred to the House Committee on Oversight and Reform

H.R. 1553: Fair COLA for Seniors Act of 2019 / Rep. John Garamendi, D-CA Cosponsors: 35 (D) 3 (R)

H.R. 2478: The Federal Retirement Fairness Act / Rep. Derek Kilmer, D-WA Cosponsors: 44 (D) 13 (R)

DC STATEHOOD

Referred to the Senate Committee on Finance (S. 521)

H.R. 4540 Public Servants Reforms the Windfall EliminaProtection and Fairness Act tion Provision (WEP), to provide / Rep. Richard Neal, D-MA WEP-affected individuals who are eligible for benefits before 2022 a $150 monthly rebate. Changes the WEP calculation Cosponsors: moving forward. 138 (D) 2 (R)

Cosponsors: 15 (D) 3 (R)

FEDERAL ANNUITIES

LATEST ACTION(S)

H.R. 51/H.R.5803: Washington, D.C. Admission Act / Del. Eleanor Holmes Norton, D-DC

Provides for the admission of the Approved by the State of Washington, D.C. into House Committee on the Union. Oversight and Reform on February 11, 2020.

Cosponsors: 223 (D) NARFE’s Position: 12

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Support

Oppose

No position

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

ISSUE

FEDERAL COMPENSATION

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

H.R. 5690/S. 3231: Federal Provides federal employees with Adjustment of Income a 3.5 percent pay raise in 2021. Rates (FAIR) Act / Rep. Gerry Connolly, D-VA / Sen. Brian Schatz, D-HI Cosponsors: H.R. 5690: 27 (D) 0 (R) S. 3231: 10 (D) 0 (R)

FEDERAL PERSONNEL POLICY

H.R. 3348/S. 1898: Modern Employment Reform, Improvement, and Transformation (MERIT) Act of 2019 / Rep. Barry Loudermilk, R-GA / Sen. David Perdue, R-GA

Streamlines the employee removal process for agencies by weakening due process for federal employees.

H.R. 3348: 0 (D) 19 (R) S. 1898: 0 (D) 5 (R) NARFE’s Position:

Support

LATEST ACTION(S) Referred to the House Committee on Oversight and Reform (H.R. 5690) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 3231) Referred to the House Committee on Oversight and Reform (H.R. 3348) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 1898)

Oppose

No position

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

q $25/month

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

q $10/month

q $50 – Bronze lapel pin

q Other: ______/month ($10 minimum)

q $25 – Basic lapel pin

Sustainers receive a sustainer lapel pin and NARFE-PAC 17oz stainless steel thermal bottle that keeps liquids hot for 12 hours or cold for 24 hours.

q Other: _________

q Please do not send any gifts for my contribution (This saves NARFE-PAC money!)

NARFE Member #: __________________________________________ Name: ___________________________________________________

q Charge my credit card (required for monthly contribution) q MasterCard

q VISA

q Discover

q AMEX

Address: _________________________________________________

Card #: ________________________________________________

City: ___________________________________________________

Exp. Date: _____ /_________

State: ______________________

ZIP:

__________________

Occupation: _________________ Employer:____________________ To comply with federal law, we must use our best efforts to obtain, maintain and submit the name, mailing address, occupation and name of employer of individuals whose contributions exceed $200 each calendar year. NARFE-PAC is for the benefit of political candidates and activities on a national level. NARFE members have the right to refuse to contribute without reprisal, and NARFE will neither favor nor disadvantage anyone based on the amount of a contribution or failure to make a voluntary contribution. The suggested amounts are only suggestions and not enforceable. NARFE-PAC contributions are not deductible for federal income tax purposes.

yyyy

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Or mail check payable to NARFE-PAC to: NARFE Attn. Budget & Finance 606 North Washington St. | Alexandria, VA 22314 W W W. N A R F E . O R G

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* The Service Benefit Plan will pay a hearing aid benefit for Standard and Basic options up to $2,500 total every 3 calendar years for adults age 22 and over, and up to $2,500 total per calendar year for members up to age 22. FEP Blue Focus does not have a hearing aid 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 Blue Cross and Blue Shield Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under the Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefit first before accessing the savings of the Blue365® Discount Program. To find out what is covered under your policy, contact the customer service number on the back of your member ID card. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. These items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time. † Price shown does not include cost of comprehensive hearing exam. Examination and testing for prescribing of hearing aids is covered under the Blue Cross and Blue Shield Service Benefit Plan. The member should confirm that the provider rendering the hearing exam is a Preferred provider. If the provider is Non-preferred, the member may be

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Call TruHearing today and start saving 1-877-360-2432 | For TTY, dial 711 charged a maximum fee of $75 for the exam, and the member may need to submit a claim for reimbursement. Must be a FEP member to access TruHearing discounted pricing. TruHearing is offered through Blue365, which provides exclusive health and wellness deals and is a program of Blue Cross Blue Shield Association, an association of independent Blue Cross and Blue Shield companies. The Blue Cross® and Blue Shield® words and symbols, Federal Employee Program®, FEP® and Blue365® are all trademarks owned by Blue Cross Blue Shield Association. ‡ Smartphone compatible hearing aids connect directly to iPhone®, iPad®, and iPod® Touch devices. Connectivity also available to many Android® phones with use of an accessory. All content ©2019 TruHearing, Inc. All Rights Reserved. TruHearing® is a registered trademark of TruHearing, Inc. All other trademarks, product names, and company names are the property of their respective owners. Listed benefit amount may differ from customer's actual benefit. Actual customer payment will vary. Three follow-up visits must be used within one year after the date of initial purchase. Hearing aid repairs, and replacements subject to provider and manufacturer fees. For questions regarding fees, contact TruHearing customer service. FEP_NARFE_AD_1118

TruHearing is an independent company that provides discounts on hearing aids.

Questions & Answers

The following Questions & Answers were compiled by NARFEâ&#x20AC;&#x2122;s Federal Benefits Institute staff. NARFE does not provide legal, financial planning or tax advice or assistance.

EMPLOYEES RETIREMENT COVERAGE

I was previously covered under the Federal Employees Retirement System (FERS) for three years back in the 1990s. When I separated, I did not take a refund of the retirement contributions that I paid into FERS. I was rehired in 2019 and was given FERS Further Revised Annuity Employee (FRAE) retirement coverage by my agency. The retirement deduction is much higher under FERS FRAE than it was under FERS. Shouldnâ&#x20AC;&#x2122;t I be allowed to go back under regular FERS coverage?

Since you were not previously vested with a minimum of five years of coverage under FERS upon initial separation from federal service, and since you were rehired into a retirement covered position on or after January 1, 2014, your agency placed you under FERS FRAE coverage correctly. Put simply, had you previously worked for five years instead of three, you would have been able to go back under FERS at the regular deduction rate. For more details regarding FERS FRAE 16

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coverage, see www.opm.gov/ retirement-services/publicationsforms/benefits-administrationletters/2014/14-107.pdf.

MILITARY RETIREMENT BASED ON COMBAT DISABILITY

If my military retirement is based on combat disability or an instrumentality of war, can I pay a military deposit to obtain service credit under FERS without waiving my military retirement?

Yes. This is one of the exceptions that allow you to obtain military service credit under FERS without waiving your military retirement. Provide the documentation that supports this claim to your agency retirement office so it can reach out to OPM on your behalf to determine if the evidence is acceptable for their purposes. Generally, individuals wishing to submit documentation in support of military retired pay awarded on account of a service-connected disability must provide specific official documents detailing each injury and the combat-related event(s) that identifies and documents the origin of the injury, such as service medical records excerpts or prior military disability board decisions from his or her previous military service branch because only a military service branch can make this determination. If OPM tells your

agency that the documentation is acceptable, you can then move forward with making your military deposit without worrying about ever having to waive your military retirement when you later retire under FERS.

TERMINATION OF MEDICARE PART B COVERAGE

Although I have been covered by the Federal Employees Health Benefits (FEHB) program since the beginning of my federal career, I signed up for Medicare Part A when I reached age 65. I thought I was going to retire in December, so I went to my local Social Security office and signed up for Medicare Part B to become effective the first month of my retirement. However, I changed my mind and decided to keep working a little longer. How do I terminate my Medicare Part B coverage. Can I be refunded for any premiums already paid?

Since you will continue FEHB coverage as a federal employee a little longer, you can voluntarily terminate your Medicare Part B (medical insurance) if you believe you won’t benefit from it as secondary coverage to your FEHB plan. You must submit Form CMS-1763 to the Social Security Administration (SSA). You’ll need to have a personal interview with Social Security before you can terminate your Medicare Part B coverage. To schedule an interview, call the

SSA at 1-800-772-1213 (TTY: 1-800-325-0778) or your local Social Security office by using the following online office locator tool: https://secure.ssa.gov/ ICON/main.jsp. You can voluntarily terminate Medicare Part B at any time after submitting an enrollment request. You may withdraw an enrollment request at any time before Part B coverage becomes effective. But when a Part B termination request is not filed in time to prevent enrollment, the request is treated as a voluntary termination and is effective the month after the month in which the request is filed. For example, if your Medicare Part B effective date was December 2019, and you waited until the middle of May 2020 to file a request for termination, your Part B termination effective date is June 30, 2020. Unless an error, misrepresentation, or inaction by an employee or agent of the government has occurred, disenrollment will not be retroactive, and as such, premiums already paid will not be refunded.

RETIREES FEHB COVERAGE FOR GRANDCHILDREN

Q A

Can my grandchild be covered under my FEHB plan?

Your grandchild may be eligible for FEHB coverage if he or she meets the eligibility requirements for foster

children. These requirements are • The child must be under age 26 (if the child is age 26 or older, he or she must be incapable of self-support due to a disability that existed before age 26); • The child must currently live with you; • The parent–child relationship must be with you, not the child’s biological parent; • You must currently be the primary source of financial support for the child; and • You must expect to raise the child to adulthood. You must sign a certification stating that your grandchild meets all the requirements and that you will notify OPM (or your employing office if you’re still federally employed) if the child moves out of the home or stops being financially dependent on you. Submit the certification to OPM (or your employing office) for its determination on whether your grandchild meets these requirements. If approved, OPM (or your employing office) will then notify your FEHB plan that your grandchild should be added to your enrollment.

FEDVIP ENROLLMENT

I am a federal annuitant who is not enrolled in the Federal Employees Dental and Vision Insurance Program (FEDVIP). My nonfederal spouse has dental insurance through her employer, and that insurance covers both her and me. But when she retires, both of us will lose that coverage. Will I be able to sign up for W W W. N A R F E . O R G

Questions & Answers

federal dental insurance at that time for both her and me, or will I have to wait for the following open season to enroll?

Yes. The loss of dental insurance under your wife’s employer plan will be a qualifying life event (QLE) that allows you to enroll (both you and your spouse) under a FEDVIP dental plan. You can submit the QLE anytime from 31 days before to 60 days after the date of the event (loss of coverage). Since you don’t already have an account with BENEFEDS, use the following weblink and follow the instructions for creating

a BENEFEDS account, and then follow the instructions for enrolling in a dental plan with your QLE: www.benefeds.com/ Portal/loginUser?EventName=E nrPlan&ctoken=#. BENEFEDS will ask for your QLE type and the date of the event as part of the enrollment process. When you submit the QLE, the effective date of FEDVIP coverage will be the first of the month after BENEFEDS receives your request. If you experience any difficulty with this or if you have any additional questions about your eligibility for coverage under FEDVIP, you can contact

them directly at 1-877-888FEDS (1-877-888-3337).

MEDICARE ENROLLMENT AND HSA CONTRIBUTIONS

I’m retired and currently have a high-deductible FEHB plan that allows me to contribute to a health savings account (HSA), but I plan to enroll in Medicare soon. What should I consider?

Verify when your Medicare coverage will become effective, keeping in mind that sometimes your coverage can be backdated for

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Questions & Answers

up to six months. To avoid a tax penalty, Medicare recommends that you stop contributing to your HSA six months before you apply for Medicare. You are no longer allowed to contribute to your HSA once you are effectively covered by Medicare. We also recommend that you talk to a customer service representative from your FEHB plan to understand how its health reimbursement arrangement (HRA) benefit works. Since Medicare will become your primary coverage, consider using the annual open season to compare your current FEHB plan with others to see if another plan might work better for you moving forward. Although you will never have to forfeit the money in your HSA, if you transfer to a different FEHB plan, you would forfeit any funds remaining in your HRA. Therefore, you would want to use up the funds in your HRA before transferring to a new FEHB plan. For more details regarding the differences between an HSA and an HRA, refer to the following FastFacts document from OPM, www.opm.gov/ healthcare-insurance/fastfacts/ high-deductible-health-plans.pdf, and refer to your specific FEHB plan brochure.

LUMP SUM PAYMENT OF CIVIL SERVICE RETIREMENT AND DISABILITY FUND

I’m retired from the federal government. When I pass away, who gets the money that I contributed into the Civil Service Retirement and Disability Fund (CSRDF)?

A 20

Upon your death as an annuitant, if there is a monthly survivor

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benefit payable to a surviving family member, the money remains in the CSRDF and is used to pay the monthly survivor benefit. However, if the total amount of retirement benefits paid to you (and any survivors eligible for monthly benefits) is less than the amount of your retirement contributions plus any applicable interest, the difference will be paid to your survivors or estate as a lump sum. Refer to SF2808 (CSRS) or SF3102 (FERS) for the beneficiary form and federal order of precedence for this. For example: Taran contributed a total of $30,000 to the CSRDF during his federal career as an employee under FERS. His gross monthly annuity is $3,000. $30,000 divided by $3,000 = 10. If Taran dies within the first 10 months of receiving his retirement, a lump sum payment of the remaining amount he contributed would be refunded to his beneficiaries if there is no one eligible for a monthly survivor benefit (e.g., a spouse, former spouse, and/or dependent child). Specifically, if Taran died after receiving two months of annuity payments ($6,000), a lump sum payment of $24,000 is potentially payable to his beneficiaries. But once you (and any potential survivors receiving monthly benefits) receive gross monthly benefits that exceed your contributions, there are no more contributions in your account, and no lump sum payment is made upon your death from the CSRDF other than your last prorated monthly annuity payment. Keep in mind that you will continue to receive your monthly

NARFE at Your Service At NARFE headquarters, experts are available to answer questions and to assist in helping with a variety of benefit matters. Call NARFE at:

800-456-8410, Option 2 annuity even when the monthly benefits paid to you exceed your contributions because there’s money (plus interest) in the CSRDF that you didn’t contribute (i.e., agency contributions) that will continue to help pay your annuity for the rest of your life, as well as any applicable spousal survivor benefit potentially payable for the rest of a surviving spouse’s life. Note that recovering an amount equal to your retirement contributions for tax purposes is now treated differently than it was previously. Refer to IRS Publication 721 for more details regarding the current tax rules for your federal annuity. To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@ narfe.org.

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Benefits Brief

DID YOU KNOW YOU CAN DO THAT ONLINE?

embers often contact the NARFE Federal Benefits Institute because they are having difficulty reaching the Office of Personnel Management

(OPM). However, many of the questions we receive can be answered simply by going online. The most efficient way for retirees to contact OPM is through its Services Online (SOL) portal at www.servicesonline.opm.gov/. Here are some of the things you can do online: • Change your federal and state income tax withholding. • Change your mailing address. • Change your password. • Establish an allotment to an organization. • Request a duplicate annuity booklet. • Set up a checking or savings allotment. • Sign up for direct deposit of your payment. • Update your email address/ opt in to receive information electronically. • View/print your annuity statement/verification of income. The following information will help you access those capabilities and find answers to common questions.

ACCESSING OPM’S SERVICES ONLINE

In order to use OPM SOL, retirees must create an account. When logging into SOL, enter every character of your claim number (CSA), which begins with A or F. If you don’t know how to find your claim number, please read the next section. 22

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The first time you log in to SOL, your password will be a temporary one issued by OPM and sent to you through the mail. During that initial online session, you will establish a secure password for future logins. Note: If you are a representative payee, guardian, conservator or any other third party representing an OPM annuitant, you cannot use SOL. For further information, please contact OPM’s Retirement Operations Center by phone at 1-888-767-6738 or via email at retire@opm.gov.

FINDING YOUR CLAIM NUMBER

Your claim number is shown on the Retirement Services Reference Card that was mailed to you when you retired. Your claim number can also be found on documents from OPM, for example, your annuity statement, 1099R tax statement and your retirement benefit booklet.

FORGOT YOUR PASSWORD?

There are two ways to get a new password:

• By email, for those who have accessed their accounts within in the past 15 months and set up personal security questions with OPM (to do so, visit: www.servicesonline. opm.gov/Security/ ForgotPassword) • By physical mail. It will take about two weeks for the new temporary password to arrive at your home address. Send your request to: U.S. Office of Personnel Management Online Password Retirement Operations Center Post Office Box 45 Boyers, PA 16017 Before you reset your password, be aware of the following: do not request a password reset if you have already requested a password from the Retirement Operations Center, or if you have requested a password by sending an email to retire@opm.gov. Requesting a new password in those instances will further delay your access to SOL. Submitting multiple requests may result in multiple reset letters/emails being generated. Each time a new password reset request is generated, it invalidates the previous password request. NARFE’s Federal Benefits Institute staff is here to assist you. If you have any problems accessing OPM’s online portal, please contact the Institute at fedbenefits@narfe.org or 1-800456-8410, option 2. —BY JAMES “AL” REEVES, SENIOR BENEFITS SPECIALIST

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Cover Story

BY D

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OBE V ID T

N K IN

These days, older adults have a wide variety of senior living arrangements. Choosing which type of community is best for you can feel overwhelming, but it doesn’t have to.

The options for senior housing and care are far more diverse and,

potentially, rewarding than even ten years ago. “Perhaps the biggest

change is the general recognition that senior care does not mean that

you’re confined in a nursing home,” says Mary Sue Patchett, executive

vice president, Community Operations at Brookdale Senior Living (www. brookdale.com), one of the nation’s largest senior housing providers and a NARFE affinity partner. “A lot of older adults grew up thinking that as they got older, and perhaps needed more care support, they’d get stuck in a nursing home. But there are better options now.”

Patchett notes that communities like Brookdale offer customers a wide range of activities and customized care. “We build relationships with each and every customer,” Patchett says. “We don’t take a one-sizefits-all approach. Many choose one of our communities because they’re lonely and want to make friends with new neighbors. Some want better food experiences. And for those who have evolving care needs, we make sure each resident gets the care that is best for them. We take time to understand who they are, what they enjoy and what their goals are. From an activities standpoint, many older adults are asking for opportunities to help them live an optimum life. They want more variety in programs, more exercise classes and lifelong learning opportunities.”

“ The biggest mistake many seniors make is inertia— staying in place in a home that may no longer suit your needs and/or is too expensive to maintain.”

TOUGH CHOICES

Still, there are some challenging considerations—including cost, care needs and type of community—that should be addressed by those approaching retirement. Retirement often features three stages: a go-go set of years when health is good and priorities like travel and pursuing deferred pastimes are paramount; slow-go, when 26

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physical challenges and a decline in general energy level may occur; and a no-go period of frailty, when access to family and professional care can be particularly important. The best locale for each stage of retirement may differ and may need to be separately planned for. One potential mistake seniors and those approaching retirement could make is moving into a senior community or assisted living facility too late and missing out on the benefits they provide. According to several aging services experts, more and more seniors seek to live independently for as long as possible and only consider moving into a retirement community when forced to by health issues. But that can compel important decisions to be made quickly and under pressure, with reduced energy, time and ability to optimally comparison shop between communities and examine critical factors like ambiance, services and the major financial implications of their choices. “The biggest mistake many seniors make is inertia—staying in place in a home that may no longer suit your needs and/or is too expensive to maintain,” says Steve Vernon, a consulting research scholar at the Stanford Center on Longevity. Vernon is the author of Retirement Game-Changers: Strategies for a Healthy, Financially Secure, and Fulfilling Long Life?, which contains a chapter that analyzes retirement housing options, including two checklists to help readers assess specific homes and communities. “The home and neighborhood in the suburbs that might have been a good place to raise a family and pursue careers may not be the best place to age, leading to isolation. At least consider your alternatives. The older you get, the harder it is to move. Give serious thought to moving in your 60s or 70s.” Some facilities also have financial and medical qualification factors, and those who wait too long and garner more health issues while having fewer financial resources may not qualify, notes Shawn Steel, CFP, JD, a financial planner and attorney at Reston, VA-based financial advising firm ClearLogic Financial, Inc. Housing and health care are typically the two main factors in the search for optimal senior housing. Placement agents, generally paid for by retirement communities, can help you explore the options. One national chain is A Place for Mom (www.aplaceformom.com), whose more than 500 senior living advisors work

with seniors and caregivers to offer referrals to senior living communities that would be a good fit based on the family’s unique situation. Advisors offer needs assessment, research on potential housing options, help with arranging tours, and guidance on transition to a new community at no cost to users. “When we connect with seniors and their families, our advisors, who are local across the country, do an initial consultation with the family to determine their health and care needs, their budget and their lifestyle preferences,” says Sue Johansen, vice president, partner services, at A Place for Mom. “With the combination of these, we can tailor a short list of communities that are a good fit for the senior.” Geriatric care managers like Elizabeth Malloy and her partner Barbara Hament, principals at Senior Care Navigator LA, a geriatric care management service, can also help guide seniors and their children through the types of care and aging services resources that are appropriate for their needs. Here are the basic retirement community options and some considerations for each. Independent living. For those seeking to stay in their existing residence, factors such as whether there are stairs and if doors are wide enough to accommodate a wheelchair or walker can sometimes determine the feasibility of aging

in place. Some residents may be able to retrofit their homes with safety features such as grab bars and remove obstacles such as carpets. For those further along the aging spectrum, it is important to account for how all the activities of life, home maintenance, shopping, trips to medical providers and social interaction with others will be accomplished as energy declines and health challenges arise. For retirees who have a large home, one option may be to get a younger roommate to help out, perhaps at below-market rates. For seniors with severe health issues, around-the-clock nursing care added to the costs of maintaining a house may rival or exceed full-care assisted living facilities and nursing homes and be cost-prohibitive for many, notes Hament. Independent living can also mean moving to communities tailored to retired individuals but where residents live much as they would in the general population. This is often referred to as independent senior living (a.k.a. retirement communities, 55+ communities, senior apartments, retirement homes, active senior communities, active senior living). These communities typically feature detached homes, apartments, townhomes or small suites in neighborhoods centered around recreation centers, retail locations and/or other amenities, such as golf courses.

“Independent living can also mean moving to communities tailored to retired individuals but where residents live much as they would in the general population.”

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

Assisted living (a.k.a. personal care homes, adult congregate care, residential care facilities). These communities are for people who wish to live independently but desire or need some level of support with the necessities of daily living and bodily functions, such as eating, bathing, relieving oneself and administering medicines. Many offer meals, entertainment programming, activities transportation and physical assistance on an à la carte basis that offers considerable flexibility. States regulate assisted living facilities; interested individuals should research the ratings of the facilities they’re considering. Nursing homes (a.k.a. skilled nursing facilities, convalescent homes). These facilities include extensive support to tend to residents’ medical conditions and the necessities of daily living and bodily functions. As compared to assisted living, the level of medical care is greater, with nurses providing constant monitoring. Residents’ privacy and autonomy are often reduced. Nursing homes can have a medical feel because of the emphasis on maintaining clean, ideally sterile, conditions. They are often the next step for some discharged from hospital stays. Medicare’s Nursing Home Compare webpage (www. medicare.gov/nursinghomecompare/search. html?) has detailed information about every Medicare and Medicaid-certified nursing home in the country, including a quality rating system that gives each nursing home a rating between one (lowest) and five (highest) stars. Residential care homes (a.k.a. group homes, adult family care homes, board and care homes, personal care homes, adult foster care homes). These facilities offer many of the same services as larger assisted living facilities, but they do so in smaller, more home-like settings. Most residential care homes employ, or are run by, nurses and have 10 or fewer seniors. While residential care homes tend to provide less in the way of organized activities than do larger assisted living facilities, the setting is more intimate and the group dynamic more familial. In fact, residents may share the home with the operator’s family and have the opportunity to interact with multiple generations on a regular basis. Living with relatives. This is one of the most desired choices as it can combine some level of autonomy with the care and company of loved ones. Direct payment of relatives, such 28

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“ Housing and health care are typically the two main factors in the search for optimal senior housing. Placement agents, generally paid for by retirement communities, can help you explore the options ... Advisors offer needs assessment, research on potential housing options, help with arranging tours, and guidance on transition to a new community at no cost to users.”

as pursuant to options in some long-term care policies, can sometimes make this a win-win combination by keeping wealth in the family. On the other hand, some seniors will lack willing or able relatives, and some physical conditions, such as severe dementia or neurological diseases, may be beyond the capability of family members to provide optimal care. A more realistic longterm goal may be to live in the same region as loved ones. Memory communities (a.k.a. Alzheimer’s care, dementia care). These communities are tailored to those with cognitive impairments, including having security features that prevent residents from wandering and getting lost. Living in such communities reduces social stigma by grouping seniors facing similar

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“University towns are among the most attractive retirement locales given that they tend to boast strong hospital facilities, educational opportunities, a mix of generations, social services and cultural amenities.”

challenges with services that can target their particular needs, such as monitored medication regimes and music and art therapy. “It is good to be in a place where there is this option, rather than having to move to an entirely new setting,” Malloy says. Continuing care retirement communities (CCRCs). These communities feature a variety of living structures—often including independent living, assisted living, nursing homes and memory care—that aim to address the changes in needs as individuals age. They are an expensive option and usually require a large up-front buy-in fee. However, after buying in, one can proceed from independent living to assisted living to a nursing home as health needs increase. The surrounding community. There is also the issue of the larger community in which one finds oneself. Numerous publications feature reports dedicated to helping individuals find the best retirement communities in which to locate, such as surveys by U.S. News and World Report, Money, and Sperling’s BestPlaces (www.bestplaces.net). University towns are among the most attractive retirement locales given that they tend to boast strong hospital facilities, educational opportunities, a mix of generations, social services and cultural amenities. Bert Sperling, owner of Sperling’s BestPlaces, notes the importance of a residence’s proximity to a major hospital and an airport, and of fitting in with a community’s political, demographic and entertainment profile. 30

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EXAMINING FACILITIES

There is no substitute for personally visiting potential retirement facilities. Cleanliness, repair records, attentiveness and cheerfulness of staff, quality of meals, and variety of activities can make a great deal of difference. Mealtimes, particularly dinners, are a critical hour to pay attention to at many facilities with respect to the quality of the food, the quality of staff service and the opportunities for socialization.

FINANCIAL ISSUES

Finances will be a tremendous driver with respect to the availability and the desirability of different options. For those with few resources, CCRCs and other communities with buy-ins or large monthly fees may not be viable. Reverse mortgages or moving to a less expensive home or state may help. Genworth offers an online cost of care survey that compares the cost of long-term care across the country and by different types of care (www.genworth.com/aging-and-you/ finances/cost-of-care.html). Financial planner Shawn Steel says it is important for seniors and their financial advisors to closely examine the structure of fees and any buy-ins, including whether there is an entrance fee and whether it is refundable, the monthly fees for different types of services, and whether they might escalate and how. Appraising their overall financial health is important, too. —DAVID TOBENKIN IS A FREELANCE WRITER BASED IN THE GREATER WASHINGTON, DC AREA.

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Should I S or Shou There are many reasons people want to work for the federal government. While federal salaries aren’t always competitive with private industry, many people find that the benefits—including health insurance, vacation time and retirement—are often better than what private companies offer. The government also offers excellent training and development opportunities, a good work–life balance, and generous sick leave and holiday schedules. And, of course, federal employment gives you the opportunity to enhance the lives of your fellow Americans and others around the world. Despite these advantages, according to the Office of Personnel Management (OPM), 189,000 workers—6.7 percent of the total workforce—quit their jobs in 2017, foregoing the chance to continue working for Uncle Sam. Some have better positions lined up in the private sector, but others simply leave. Why are these people quitting? James Marshall, an expert from NARFE’s Federal Benefits Institute and owner of the firm Federal Retirement Planning, LLC (www. federalretirementinfo.com), says that when he conducts career planning seminars for new and midcareer employees, he is

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constantly asked about leaving federal service before becoming retirement eligible. Those interested in leaving, Marshall says, tend to fall into one of four categories: they dislike their work; they dislike their coworkers or supervisors (or the agency leadership); they believe they’ve reached a dead end in their careers; or their spouse has been relocated. There are other reasons, too. Some people grow to hate their commutes. Others are tired of the recurrent uncertainty of government shutdowns and threats to cut civil servants’ pay and benefits. And still others are unhappy with the political direction of their agency.

WHAT YOU MIGHT LOSE— AND WHAT YOU CAN KEEP

“Employees should be aware it is their responsibility to find out whether or not the civilian service they performed as a federal employee is creditable towards retirement,” says Anthony Marucci, director of communications at OPM. “Knowing about the choices that are available and how those choices will affect their retirement benefits will help them make informed decisions.” If you leave before you are eligible to retire, here’s what will happen to your federal benefits.

Stay uld I Go? Many federal employees consider leaving government service before becoming retirement eligible. Hereâ&#x20AC;&#x2122;s what you should know before taking the leap.

By Everett A. Chasen

Health insurance: Your coverage under the Federal Employees Health Benefits (FEHB) plan will continue for free for 31 calendar days after your employment ends. During that time you can, if you wish, apply for a temporary continuation of coverage (TCC) for another 18 months in the plan you had while employed, or you can convert your policy to one your current health care provider may offer that may differ in benefits or cost, or both, from the plan you currently have. In the case of either option, however, the government will stop its contribution to your health insurance after the 31 calendar days have expired. Therefore, if you continue coverage, youâ&#x20AC;&#x2122;ll have to pay the full premium. TCC also adds a 2 percent administrative charge. If you have a flexible spending account (FSA) for health care, your contributions will terminate on the day you separate from service, but expenses incurred before that day will be reimbursed. Contributions for care of any dependent will also terminate, but you will continue to be reimbursed for expenses until the end of your current benefit period or until your account balance is exhausted, whichever is sooner. Vision and dental insurance coverage you may have elected terminates at the end of the

pay period in which you separate unless you retire with an immediate annuity. Long-term care insurance coverage is fully portable as long as you pay your premiumsâ&#x20AC;&#x201D;however, if you have been paying them through payroll deductions, you must switch to another payment plan. Retirement plan: If your retirement coverage while employed by the federal government was under the Federal Employees Retirement System (FERS), contributions to your retirement were made to the Basic Benefit Plan, Social Security, and most likely, the Thrift Savings Plan (TSP). Because enrollment in the Civil Service Retirement System (CSRS) ended in 1984, nearly all CSRS employees considering leaving the government now are retirement eligible. Therefore, this article will focus on FERS. The FERS Basic Benefit is a monthly annuity to which both you and the government contribute. The amount you receive when eligible is based on your years of service worked under the system, your income, and the age at which you retire. If you have worked for the government for less than five years but you think you may return to the federal government at some point, you can leave your money in the retirement fund. Otherwise, you can get a refund for the amount in your fund. W W W. N A R F E . O R G

“If you’ve got five years in at a minimum, your basic benefit pension is vested.”

If you’ve worked for the government for more than five years, you can leave your money in the retirement fund and apply for a deferred annuity to be paid once you reach the age and service requirements needed to collect an annuity from the government. You can also get your deductions refunded. Your Social Security and Medicare credits are earned in the same way that those who work in private industry earn them. Your credits are added to any past or future credits you earn to establish your level of benefits in those programs. If you maintain a balance of $200 or more, you can keep any money that you or the government have deposited in your TSP account. You never have to make a withdrawal except for IRS-required minimum distributions, which begin once you’re age 72 and separated from service. You can also withdraw those funds, but keep in mind you will owe taxes on the taxable amount of any payment you receive from your account, and you may also have to pay a 10 percent early withdrawal penalty if you are not yet age 55 (50 if you are a public safety employee.) Other benefits: If you are not going directly to another job and were separated from federal service through no fault of your own, you may be eligible for unemployment insurance. Form SF-8 provides additional information (www.gsa.gov/forms-library/ notice-federal-employee-about-unemploymentinsurance). If you are part of the Federal Employees’ Group Life Insurance (FEGLI) plan, you receive free coverage for 31 days after your employment ends. During that period, you can convert your coverage to an individual policy if you wish. 34

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Finally, if you have annual leave left over, you will receive a lump sum payment for unused leave. It will be sent to you in the same way you receive your final paycheck and is considered taxable income in the year you receive those funds. Your sick leave, however, will not be paid for and cannot usually be used to meet years of service for retirement eligibility. If you return to the government at some point, any accrued sick leave will be recredited to your account.

ADVICE FROM A FEDERAL BENEFITS EXPERT

We asked James Marshall how he advises those who come to him thinking about leaving government service before retirement. “The first thing I tell them to do is ask themselves, ‘Why am I leaving?’” he says. “If I’m leaving because I hate my work, have I chosen the wrong career? If I’m leaving because I hate my coworkers, can I transfer to a different department or a different agency? If I’m leaving because I’ve hit a dead end, sometimes private industry is a better answer. “If your answers lead you to leave the federal government, then ask yourself what benefits you’ve earned so far. If you’ve got five years in at a minimum, your basic benefit pension is vested.” He suggests not taking a refund of your civil service retirement contributions immediately upon separation. “If you return to federal service, you don’t have to repay the money plus interest to receive credit for your previous service time. And if you don’t return to federal service, you can always ask for your money later—plus interest. If you are vested with five or more years of FERS service before separating, most people find an annuity is worth more, in the long run, than a lump sum payment. The lump sum amount payable usually isn’t a lot of money, so why not leave it in there to add to your vesting potential?” Even if your pension is just $200 a month, “you’ll get a pension you’ll rarely see in the private sector,” Marshall added. “That’s $200 that may cover the cost of your Medicare later in life.” Older workers, especially those in their 50s, should be aware that leaving the government before retiring will end their FEHB coverage. “Having access to FEHB in retirement can save someone thousands of dollars every year compared to the cost

CONTROL WHAT YOU CAN. INSURE WHAT YOU CAN’T. You can control many things in your life — diet, exercise, even on-demand TV — but life has its own plans. A serious accident or illness can happen at anytime. The high cost of a hospital stay, and the expense of home recovery afterward can take a serious toll on your personal and retirement savings.

NARFE Hospital Income and Short Term Recovery Insurance Plan This plan can help you manage how life’s surprises affect what you’ve worked so hard for. It pays cash benefits to you, or anyone you choose, to use the money as you see fit. Use the cash benefits to stay more in control of your health care choices, maintain your self reliance, and receive the level of care you’ve earned and deserve.

Benefits include: Guaranteed Acceptance to NARFE Members and Spouses Age 65 and Older.*

• In-Hospital cash benefits paid to you starting the first day you’re hospitalized for a covered injury or illness. • At-Home cash benefits paid to you as soon as Medicare approves post-hospital home recovery treatments your doctor recommends.

• Cash benefits paid in addition to any other coverage you may have. • Coverage cannot be canceled because of your health or your age. • Economical group rates specifically negotiated by NARFE for our members.

To learn more or enroll in the NARFE Hospital Income and Short Term Recovery Insurance Plan, call 1-800-233-5764 or visit us at www.narfeinsurance.com *This policy is guaranteed acceptance, but it does contain a Pre-Existing Conditions Limitation. All benefits are subject to the terms and conditions of the policy. Policies underwritten by Hartford Life and Accident Insurance Company detail exclusions, limitations, reduction of benefits and terms under which the policies may be continued in full or discontinued. Plans may vary by state. The Hartford® is The Hartford Financial Services Group, Inc., and its subsidiaries, including issuing company Hartford Life and Accident Insurance Company. Hartford, CT 06155 Hospital Indemnity Form Series includes SRP-1151, or state equivalent.

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of health insurance for others who leave their private sector jobs—and FEHB is only available for people eligible for retirement at the time of separation from federal service. “If having great health care is important to you,” Marshall advises, “plan to come back to the government later in life. It doesn’t have to be a high salary job (a job that could raise your annuity because of your highthree average salary). As long as you sign back up for FEHB upon rehire and you’re eligible to retire once you’re done, you’ll have your health insurance in retirement. “You don’t have to work for the same agency when you come back. You can find a job at any agency, as long as it’s a job that provides retirement coverage under FERS, and not only get your health care benefits but also add additional service credit to your pension. It gives you a lot of flexibility—and allows you to relax about the decision you’re trying to make now.” Nearly all federal employees nowadays participate in the TSP. If a separated employee is thinking about closing his or her TSP account by transferring it to a private-sector retirement account, it’s wise to consider leaving just enough money to keep the account from closing. For those who need money right away, Marshall suggests you leave at least the $200 minimum in your account that the program requires. “There’s nothing wrong with transferring money out of the TSP account for other investments,” he says. “But it doesn’t hurt to keep a little money in TSP, because that way, if you ever want to move any money back into TSP, you can. (But) if you close out your account, the only way you can start it up again is by returning to the federal government.” “You can always move money into a TSP account, even after you leave government service— from any retirement savings account except for Roth IRAs,” he explains. IRA rules allow you to transfer or roll over tax-deferred money from an eligible retirement plan into the

“Just know what your options are.” 36

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non-Roth balance of your TSP account—if your account has a balance. Form TSP-60 has more details: www.tsp.gov/PDF/formspubs/tsp-60.pdf. Keep in mind that “FERS was designed for portability of benefits so that people can come in and out of federal employment. The old CSRS system was designed for a different time, when people were less likely to transfer as often. Now, it’s unlikely people will work for one company for more than five or six years at a time. FERS is built around that philosophy. It gives you flexibility.”

CONCLUSIONS

“I would definitely suggest that any person, before they leave federal service, schedule a meeting with their agency retirement officer and find out what they are eligible for after separation, and then determine what their options are,” Marshall says. OPM’s Marucci elaborates. “Preretirement counseling is offered at all departments and agencies within the federal government. Employees can contact their agency’s retirement counselor to schedule private retirement counseling sessions to inquire about their eligibility to retire and to review their retirement options.” NARFE offers webinars on preparing for retirement that may also help. Members can log in to the NARFE website, and view all archived webinars through the Federal Benefits Institute. Marshall suggests that those separating get a copy of their entire official personnel folder and keep their final pay statement in a safe place. That way, if you return to federal service after 20 years, you have proof of the amount of sick leave you are entitled to have restored— and can demonstrate that you worked for the government as an employee, not as a contractor, should that be questioned. “People have their different reasons for leaving federal service before they’re eligible to retire,” he concludes. “Sometimes, it doesn’t have anything to do with money. Sometimes, it doesn’t have anything to do with feelings. Just know what your options are. That way, when you do make a decision, you’re going to be in a position to make the best choice—for you!” — EVERETT A. (EV) CHASEN IS A WRITER AND COMMUNICATIONS CONSULTANT IN THE WASHINGTON, D.C. AREA. HE IS RETIRED FROM THE FEDERAL GOVERNMENT AFTER 35 YEARS OF SERVICE.

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NARFEâ&#x20AC;&#x2122;S PREMIER NATIONAL CONFERENCE

AUGUST 30-SEPTEMBER 1, 2020 WESTIN KIERLAND RESORT AND SPA | SCOTTSDALE, AZ

5 REASONS TO ATTEND LEARN With 24 sessions designed to benefit the federal community, FEDcon20 attendees have unlimited opportunities to learn from the best! Nationally recognized experts help you take full advantage your federal benefits, master the retirement process, stay financially fit, and much, much more!

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Protecting and preserving your federal benefits starts at the local level. Workshops on advocacy and local leadership help you develop skills that will help you strengthen the voice of the federal community where you live and work.

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This one-of-a-kind conference gives attendees, speakers and vendors the opportunity to lean in and learn from one another in a forum not available until now!

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Professionally and personally, FEDcon20 offers tools and training to enrich your health, wealth and lifestyle.

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FEDcon20 celebrates NARFEâ&#x20AC;&#x2122;s 99 years of continued service to the federal community. Celebrity speakers, evening entertainment and events will honor the contributions of those who serve.

MAKE PLANS TODAY TO BE AT FEDcon20! DATES AUGUST 30-SEPTEMBER 1, 2020 THE NARFE ANNUAL MEMBERSHIP MEETING will be held on Sunday, August 30, 9 a.m.-12 p.m., Westin Kierland Resort and Spa, Scottsdale, AZ

CHOOSE YOUR SESSIONS

Included in your registration are general sessions and networking opportunities. Customize your experience by choosing breakout sessions and workshops you would like to attend.

BOOK YOUR HOTEL ROOM

Westin Kierland Resort & Spa 6902 E Greenway Pkwy, Scottsdale, AZ 85254 Conference rate for accommodations is $115 plus tax per night. To make your reservation, visit www.narfe.org/fedcon20 and click on Getting Here > Hotel or call 800-354-5892. Be sure to mention the code 201315 and “NARFE.”

ADD A DAY TO VISIT SCOTTSDALE AND NEARBY PHOENIX

Take in the breathtaking views of the Sonoran Desert, or head to Old Town to visit art galleries and boutiques or enjoy southwestern cuisines at one of the local cafes. Check out one of the many museums or spend some time at the Odysea Aquarium. Architecture buffs will enjoy a tour of Frank Lloyd Wright’s desert studio at Taliesin West, while baseball fans may want to catch a Diamondbacks game.

Managing Money

BEWARE OF TRUSTS AS BENEFICIARY IN THE SECURE ACT ERA

aming a trust as beneficiary to a retirement plan, such as the Thrift Savings Plan (TSP) or IRA, allows participants to protect and control the

money from the grave. Those who have named a trust as beneficiary, however, need to be aware that the Setting Every Community Up for Retirement Enhancement (SECURE) Act’s new 10-year rule may wreak havoc on their estate plans.

Just like before the SECURE Act era, beneficiaries fall into two broad categories— designated beneficiaries (real live human beings) and nondesignated beneficiaries (not live human beings). The SECURE Act further divides designated beneficiaries into eligible designated beneficiaries and what we’ll call noneligible designated beneficiaries (not a real term, but used here to make the distinction). As outlined in my March 2020 NARFE Magazine column, eligible designated beneficiaries are still permitted to use the stretch IRA strategy, while noneligible designated beneficiaries must use the 10-year rule. In the case of a nondesignated (nonhuman) beneficiary, an inherited retirement plan must be liquidated under the five-year rule or over the deceased owner’s remaining life expectancy, depending on 40

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whether the owner died before or after his or her first required minimum distribution (RMD) was required to be paid out. While a trust is not a living human being, it’s still possible for it be considered a designated beneficiary by qualifying as a “see-through trust,” which I discuss more fully in my December 2018 NARFE Magazine column. There are essentially two types of trusts one can use to exert control over money after the original owner has died—a conduit trust or an accumulation trust (sometimes referred to as a discretionary trust). With a conduit trust, all RMDs from the inherited retirement plan to the trust are simply passed on to the trust beneficiaries, while an accumulation trust retains most, if not all, RMDs. In either case, assets held in trust (whether in or out of the inherited retirement plan) may provide desired protections.

BY MARK A. KEEN,

CFP®

Examples include protecting the money from a spendthrift by restricting access, or from potential liabilities through the legal protection that such a trust arrangement provides. The protection, however, can only last as long as the money remains in trust, which is a significant problem for conduit trusts falling under the 10-year rule. Under the old RMD rules, a beneficiary would receive the RMD income, but the bulk of the retirement plan remained in trust, safe and sound for many years, if not decades. At best, a conduit trust will now provide only 10 years of control and protection, at which point, the inherited retirement plan will have to be fully liquidated, and in turn, distributed to the trust beneficiary. Even worse, many conduit trusts have language restricting inherited retirement plan distributions to only the annual RMDs. The problem is there are no RMDs under the new 10-year rule, which means no distributions occur until a full, lump sum distribution in the tenth and final year. As you can imagine, this has the potential to create a whopper of a tax bill (unless it’s Roth money). If the intent is to control the money from the grave or protect the retirement plan money from potential liabilities,

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

the likely solution is to use an accumulation trust, in which the trustee has the ability to retain the assets in trust, according to your wishes. This doesn’t change the fact that the inherited retirement plan will have to be liquidated within the 10-year window, but it still provides control and protection over the money for as long as it stays in trust. There’s a cost to this control, however, as income taxes on the retirement plan will likely be much higher than if it was left outright to an individual. When a trust retains income (rather

than distribute it out to the trust beneficiary) the trust must pay the tax on that income according to the trust tax brackets, which are dramatically compressed compared to the tax brackets for individuals and couples. For example, a trust hits the highest 37 percent tax rate with just $12,950 in taxable income, compared to $622,051 for a married couple and $518,401 for a single tax filer. Naming a trust as beneficiary to a retirement plan is tricky terrain, and this column by no means gives a comprehensive overview of all the things to look out for. Hopefully, though, it will prompt you to take action and consult with your estate planning attorney and advisors to determine the best strategy for your circumstances. Fortunately, you have some time as the 10-year rule doesn’t take effect for the TSP (and certain other government plans) until 2022. MARK A. KEEN, CFP®, IS PARTNER, KEEN & POCOCK, AND AN INVESTMENT ADVISER REPRESENTATIVE AND REGISTERED PRINCIPAL OF THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA). SECURITIES AND ADVISORY SERVICES ARE OFFERED THROUGH SFA.

Rock On Aetna federal retiree plans - plans built for you Take a total approach to your health. We understand that health isn't just physical, it's about all of you - body, mind and spirit. We want to help you age actively and feel your best. Plan highlights » Low monthly plan premiums » Nationwide and prescriptions coverage » Low or no cost for medical services when you also have Medicare Parts A and B

It’s not too early to prepare. Talk with the Aetna federal team at AetnaFedsLive.com. » Chat online » Schedule a one-on-one conversation » Join a webinar

Learn more at aetnafeds.com/retireeplans Health insurance plans are offered and/or underwritten by Aetna Life Insurance Company (Aetna). This is a brief description of the features of this Aetna health insurance plan. Before making a decision, please read the plan’s applicable federal brochure(s). All benefits are subject to the definitions, limitations and exclusions set forth in the federal brochure. Plan features and availability may vary by location and are subject to change. Aetna does not providecare or guarantee access to health services. For more information about Aetna plans, refer to aetnafeds.com/retireeplans. ©2020 Aetna Inc. 19.12.339.1 A (03/2020) W W W. N A R F E . O R G

2020

G FUND

F FUND

MARCH

0.11%

-0.64%

-12.40%

-21.40%

-13.87%

FEBRUARY

0.13%

1.82%

-8.24%

-8.01%

-7.74%

JANUARY

0.17%

1.91%

-0.04%

-0.62%

-2.73%

YTD

0.40%

3.10%

-19.65%

-28.14%

-22.70%

C FUND

S FUND

I FUND

1 YEAR

1.97%

8.84%

-7.06%

-20.72%

-14.01%

3 YEAR*

2.43%

4.90%

5.06%

-1.93%

-1.44%

5 YEAR*

2.25%

3.54%

6.72%

1.12%

-0.24%

10 YEAR*

2.18%

4.12%

10.55%

8.38%

3.07%

L 2040

L 2050

2020

*ANNUALIZED

L INCOME

L 2020

L 2030

MARCH

-3.09%

-3.52%

-8.72%

-10.42%

-11.90%

FEBRUARY

-1.52%

-1.76%

-4.65%

-5.58%

-6.39%

JANUARY

0.01%

-0.02%

-0.45%

-0.59%

-0.71%

YTD

-4.56%

-5.23%

-13.35%

-15.92%

-18.13%

1 YEAR

-0.47%

-0.57%

-5.61%

-7.25%

-8.74%

3 YEAR*

2.59%

3.31%

2.62%

2.47%

2.31%

5 YEAR*

2.78%

3.54%

3.53%

3.60%

3.63%

10 YEAR*

3.66%

5.79%

6.52%

7.07%

N/A

*ANNUALIZED

RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP (For additional monthly returns, go to www.tsp.gov.) G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)

OPM RETIREMENT CLAIMS PROCESSING STATUS

Claims Received

Inventory Monthly FYTD (Steady State Average Processing Average Processing is 13,000) Time in Days Time in Days

2019

FEBRUARY 10,792 23,370 58 57 MARCH 10,048 20,201 50 55 APRIL 6,993 17,802 56 55 MAY 7,877 17,228 62 56 JUNE 8,201 18,501 60 56 JULY 8,000 18,413 55 56 AUGUST 8.878 17,576 50 56 SEPTEMBER 7,456 17,376 57 56 OCTOBER 7,044 17,882 59 59 NOVEMBER 7,822 18,390 62 61 DECEMBER 5,205 16,908 66 62 JANUARY 17,134 23,983 58 61 FEBRUARY 9,273 23,629 54 59 FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. l Source: OPM

2020

For the Record

MARKETS PLUNGE AMID CORONAVIRUS PANDEMIC FEARS

THRIFT SAVINGS PLAN FUND RETURNS

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2020

Equity markets suffered significant declines as investors reacted to the unexpected impact of the coronavirus pandemic. As more Americans faced shelter-in-place orders, the U.S. Government enacted several economic relief measures. The Federal Reserve made two emergency cuts to its target interest rate and initiated programs designed to ensure the smooth functioning of the financial system. The C, S and I Funds posted large losses, with a stronger U.S. dollar contributing to the latter’s decline. The F Fund posted a slight loss. All of the L Funds finished lower.—BY MICHAEL JERUE, FINANCIAL ANALYST, THRIFT SAVINGS PLAN

COUNTDOWN TO COLA

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 0.23 percent in February 2020. To calculate the 2021 costof-living adjustment (COLA), the 2020 third-quarter indices will be averaged and compared with the 2019 third-quarter average of 250.200. The percentage increase determines the COLA. February’s index, 251.935, is up 0.69 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 0.59 percent higher than the December 2019 base index of 250.452 The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes.

MONTH

CPI-W

Monthly % Change

% Change from 250.200 239.668

OCTOBER 2019 2017

240.573 250.894

-0.15 0.26

0.28 0.38

NOVEMBER

250.644 240.666

-0.10 0.04

0.18 0.42

DECEMBER

250.452 240.526

-0.08 -0.06

0.10 0.36

JANUARY 2020 2018

251.361 241.919

0.36 0.58

0.46 0.94

FEBRUARY

251.935 242.988

0.23 0.44

0.69 1.39

MARCH

243.463

0.20

1.58

APRIL

244.607

0.47

2.06

MAY

245.770

0.48

2.55

JUNE

246.196

0.17

2.72

JULY

246.155

-0.02

2.71

AUGUST

246.336

0.07

2.78

SEPTEMBER

246.565

0.09

2.88

Donate to NARFE Programs Support Alzheimer’s Research NARFE members contributed for Alzheimer’s research: $14 Million Fund

$13,501,103.39*

*Total as of February 29, 2020 100 percent of all contributed funds go to Alzheimer’s research. If you have any questions, write to: NATIONAL COMMITTEE CHAIR Olivia Williams 22 Garden Springs Road Columbia, SC 29209

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

q Mr. q Mrs. q Miss q Ms. Name:____________________________________________________ Address:__________________________________________________ City:______________________________________________________ State:_____________________________________________________ ZIP:______________________________________________________

EMAIL: oeashf3@gmail.com

Chapter Number:___________________________________________

WRITE YOUR CHAPTER NUMBER ON CHECK; MAKE IT PAYABLE TO:

Credit Card Information:

q MasterCard

q VISA

AND MAIL TO:

q Discover

q AMEX

Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633

Card Number:______________________________________________

NARFE-Alzheimer’s Research

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

Expiration Date:_____(mm)/____ (yy) 3-Digit Security Code:______ Signature:_______________________________ Date:___ /___ /____ Name: (please print)________________________________________

Give to the NARFE-FEEA Fund MAKE CHECK PAYABLE TO: NARFE-FEEA Fund PLEASE MAIL COUPON AND CHECK TO:

FEEA 1641 Prince St. Alexandria, VA 22314

q YES!

I would like to help with my contribution.

The NARFE-FEEA Fund supports NARFE members during disasters; provides scholarships to their children, grandchildren and greatgrandchildren; and funds other programs to support NARFE members at the direction of NARFE and FEEA. Enclosed is my NARFE-FEEA Fund Contribution: $______________

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

Name:____________________________________________________ Address:__________________________________________________ City:______________________________________________________ State:_____________________________________________________ ZIP:______________________________________________________ Email:____________________________________________________ To make credit card or e-check contributions, visit www.feea.org/ givenarfe.

NARFE News

NARFE MAGAZINE SUMMER SCHEDULE This year, NARFE will publish a combined June/July 2020 issue. Be on the lookout for it in late May. There will not be a separate July issue mailed in late June.

NEW STAFF AT NARFE HQ

ave Bowman has joined the marketing, communications and membership team as senior director of membership development. In this newly created leadership role, Dave will be responsible for a wide range of membership functions, including strategic direction for membership initiatives and implementation of new resources for field recruitment. As a veteran who also worked in government education, he is looking forward to working with NARFE

staff, leadership, and other volunteers who help with our recruitment and retention efforts. Dave has more than 20 years of experience working in membership roles and with digital strategy, including demonstrated experience helping associations grow their membership. Among his past

The August 2020 issue will contain your ballot to elect national officers and regional vice presidents and weigh in on bylaws referendum items. Look for that issue in late July.

experience, he has served as member services director for the Society of American Florists and the senior manager for specificindustry groups at APICS. More recently, he spent over a decade as director of partner relations for Multiview, Inc., where he helped hundreds of associations and other membership-based nonprofits increase their membership and their nondues revenue through digital communications efforts. He can be reached at dbowman@ narfe.org.

ShopNARFE Show Your NARFE Pride ShopNARFE is the official online store offering NARFE-branded merchandise, including apparel, drinkware, pins, officer badges and business cards. A portion of the proceeds from all purchases support the organization. Shop now at www.narfe.org/shopnarfe.

NARFE.org/shopnarfe 44

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2020

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

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

Who Should Join NARFE?

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

• Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits. • Get monthly issues of NARFE Magazine with news and insights for the federal community. • Visit the Member Perks page for a full listing of the many time-, money- and hassle-saving benefits available only to NARFE members. • The opportunity to get involved at the local level by joining a chapter in your area. 1Q6

NARFE MEMBERSHIP APPLICATION YES. I want to join NARFE for the low annual dues of $40.

q Mr. q Mrs. q Miss q Ms.

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

______________________________________________

Full Name

______________________________________________

Street Address Apt./Unit

______________________________________________

City

State

ZIP

______________________________________________

Phone

q Discover

q AMEX

___________________________________________ Card No. Expiration Date _____ /________ mm

______________________________________________

q VISA

yyyy

___________________________________________ Name on Card ___________________________________________ Signature ___________________________________________ Date

TOTAL DUES

______________________________________________

$40 Annual Dues X ___________ = ___________ Per Person # Enrolling Total Dues

I am a (check all that apply)

Dues payments are not deductible as charitable contributions for federal income tax purposes.

q Active Federal Employee q Annuitant

q Active Federal Employee Spouse

q Annuitant Spouse

q Survivor Annuitant

q Please enroll my spouse _________________________________________

Spouse’s Full Name

LOOKING TO MEET OTHERS in the federal community and participate in NARFE at a local level? Call 800-456-8410 to learn about a NARFE chapter in your area.

_________________________________________

Would you like to receive a FREE one-year chapter membership? Choose one: q Chapter closest to home OR q Chapter #____________

THREE EASY WAYS TO JOIN

MAY WE THANK SOMEONE? Did someone introduce you to NARFE? Please provide their Name and Member ID.

Spouse’s Email

1. Complete this application and mail with your payment to NARFE Member Services / 606 N Washington St / Alexandria, VA 22314-1914.

2. Join online at www.NARFE.org. 3. Call 800-456-8410, Monday through Friday, 8 a.m. to 5 p.m. ET.

___________________________________________ Recruiter’s Name ___________________________________________ Recruiter’s Membership ID 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. (08/19)

Member Perks

Can You Save the Most?

AFFINITY PARTNERS

NARFE appreciates your service, and so do businesses across the country. Whether you are planning for retirement, a new computer or even a great steak dinner, you can save money on everyday purchases.

The best way to take advantage of these perks is by going to www.NARFE.org/memberperks.

PRODUCTS

IDShield 410-419-7130 | www.legalshield.com/info/narfe

IDShield monitors your identity from every angle, not just your Social Security number, credit cards and bank accounts. We make sure everything connected to you is safe.

LegalShield 410-419-7130 | www.legalshield.com/info/narfe

Whether it’s big, small or somewhere in between, you have affordable legal help when you need it. Members receive the discounted rate of $16.95 for individuals and $18.95 for families of 10 (two adults and up to 8 children).

Office Depot 855-337-6811 x 2897 | www.officediscounts.org/narfe

Office Depot and OfficeMax. Members can save up to 80% on over 93,000 products. Shop online or in any Office Depot or OfficeMax store. Enjoy FREE next-day delivery on online orders over $50! Visit www.officediscounts.org/narfe to shop online, print off a FREE Store Purchasing Card, or text NARFESPC to 555-888 to receive the card to your mobile device. Call 855-337-6811 x 2897 and mention your NARFE membership with any questions or to place your order over the phone.

Omaha Steaks www.omahasteaks.com/NARFE

ENJOY FREE SHIPPING ON EXCLUSIVE COMBOS AND AN EXTRA 10% OFF YOUR ENTIRE ORDER WITH OMAHA STEAKS! Omaha Steaks delivers the finest in gourmet steaks, seafood, poultry, sides and desserts. NARFE members can enjoy FREE SHIPPING on select combos and an additional 10% DISCOUNT off entire order.

TRAVEL & TRANSPORT

Alamo Rent a Car 800-462-5266 | www.alamo.com

Drive Happy with Alamo, where NARFE members receive year-round discounts. Call and mention ID# 262544.

Avis Car Rental 800-633-3469 | www.avis.com

Avis Car Rental is one of the world’s best-known car rental brands with approximately 5,500 locations in more than 165 countries. Call or book your reservation now at Avis.com using the NARFE AWD number A701900.

Budget Car Rental 800-218-7992 | www.budget.com

Budget Car Rental was founded in 1958 for the “budget-minded” renter. Today, with approximately 3,500 locations around the world, Budget is a leading rental car supplier. Call or book your reservation using the NARFE BCD number D871500.

Choice Hotels International 800-258-2847 | www.choicehotels.com

With 6,400 hotels throughout the world, Choice Hotels offers something for everyone. As a member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967.

National Car Rental 800-CAR-RENT | www.nationalcarrental.com

You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. Contract ID 5282909.

Extra Holidays 800-428-1932 | www.Extraholidays.com

| M A Y

2020

Excellent service and the finest comforts are standards you can always rely on with Extra Holidays. With more spacious floor plans than a regular hotel, you can enjoy a One-, Two- or Three-Bedroom suite with partial or fully equipped kitchens. Advanced reservations required.

The money you save using one of these PERKS could pay for your NARFE membership.

WELLNESS Brookdale Senior Living Communities 877-713-2762 | www.brookdale.com/narfe

As the largest operator of senior living communities in the US, Brookdale has over 1,000 locations all across the country. Members are eligible for 7.5% discount at Brookdale Independent Living, Assisted Living and Memory Care communities and 10% discounts on Brookdale Private Duty Home Care. Discounts are for new move-ins/customers only.

HearUSA 855-845-2706 | www.narfe.hearusa.com

The Nation’s Most Trusted Name in Hearing Care. Choose from 250+ hearing aids with $0 co-pay for many plans. Wireless. Bluetooth. Smartphone compatible. Nearly invisible. Risk-free 60-day trial. Free follow-up care. Free 3-year warranty.

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

Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-of-the-art ultrasound technology in your neighborhood. Operator code BKHN075.

INSURANCE NARFE Insurance Services 800-233-5764 | www.narfeinsurance.com

Designed exclusively for NARFE members, (plans administered by Mercer) Senior Age Whole Life Insurance, Senior Term Life Insurance, Hospital Income and Short Term Recovery Insurance, Dental Insurance, Vision Insurance, AssistPlus, Discount Prescription Plan and Pet Insurance.

Nationwide 855-550-9216 | https://www.nationwide.com/narfe.jsp

For your love of discounts side. Discover how Nationwide’s suite of solutions can help protect your financial future. Protect what matters to you for less with a member-only discount when you enroll in an auto or power sports policy.

MOVING SERVICES Bekins Van Lines 800-248-4810 | narfe@bekins.com

The Bekins team has been moving families with friendly professionalism for more than a century. We’ve been around all these years because we keep our word—being on time, treating your possessions with care, and proactively communicating with you.

Wheaton World Wide Moving 800-248-7960 | narfe@wvlcorp.com

At Wheaton, we know interstate relocation is much more than trucks and boxes. With a network of topquality agents throughout the United States, Wheaton provides peace of mind with every relocation.

PRE-PLANNING Neptune Society 800-NEPTUNE (637-8863) | www.neptunesociety.com

Our prearranged plans cover all necessary expenses for one guaranteed price even if the services are not needed for 40 or 50 years. The Neptune Society offers a $100 discount to all NARFE members.

OTHER NARFE AFFINITY PARTNERS

Take advantage of these perks offered by our Affinity Partners, and then share your story about how one or more of your perks saved you money. Email your story to advertising@narfe.org and help other members learn about the value of the program. W W W. N A R F E . O R G

The Way We Worked

CONDUCTING AEROSPACE AND SCIENTIFIC RESEARCH In this photograph from 1961, NASA scientists are working at the Wallops Flight Facility, then called Wallops Station. Located on Virginia’s Eastern Shore near Chincoteague, VA, Wallops is currently operated by the Goddard Space Flight Center and is used as a rocket launch site to support the federal government’s science and exploration missions. Since it opened in 1945, there have been more than 16,000 launches from the rocket launch range. Today, Wallops is NASA’s premier facility for conducting research using aircraft, scientific balloons and sounding rockets. PHOTO from Records of the National Aeronautics and Space Administration, National Archives.

| M A Y

2020

DID YOU KNOW? In addition to supporting missions for suborbital and orbital rocket vehicles, the Wallops Flight Facility manages NASA’s only research airport. The research airport supports testing and operations for NASA, the Department of Defense and commercial aircraft. It includes three aircraft runways and one unmanned aerial systems runway for testing small unmanned vehicles. Visit www.nasa.gov/centers/ wallops/about/researchairport. html and www.nasa.gov/ sites/default/files/atoms/files/ wallops_factsheet.pdf

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Special Offer for NARFE Subscribers

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1 FREE MONTH and FREE SHIPPING WHEN YOU ORDER NOW! *With annual rate plan. **Fall detection does not detect 100% of falls. Users should always push their button when they need help. For home landline system and new customers only. Fall detection requires additional fees. Not available on monthly rate plan. Button signal range may vary due to environmental factors.

Learn how to save on your hearing health! Call today to see if you qualify to receive 2 free hearing aids!* With more than 30 years in hearing care, HearUSA has helped over 1 million people experience a better quality of life through better hearing.

NARFE Member Exclusive • FREE one-year batteries and one-year follow up service visits

As a NARFE member you have access to the latest hearing aid technology. Receive the highest level of quality hearing healthcare service in the industry.

• FREE three years warranty and loss, stolen & damage coverage

HearUSA is the exclusive hearing care Affinity Partner for NARFE members. We carry all major brands including rechargeable and nearly invisible models.

• 10% off hearing accessories at HearingShoppe.com

• Risk-free 60-day trial

Schedule your FREE hearing appointment:

1-855-252-0025

*This is not insurance and insurance benefits vary. Some restrictions apply. 1 year battery supply with purchase of hearing aids. Offer valid at participating HearUSA providers only. Call for details.