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Caution: new IRA rollover rules
P.46
NARFE Officer candidates make campaign statements
COVER STORY
second careers After leaving the federal cocoon, the sky’s the limit
P.22
Volume 90 • Number 6
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WashingTon Watch
8
Budget Would Increase Retirement Contributions
9
Bill Introduced to Give Feds a 3.3 Percent Raise
10 House Panel Approves Two Spending Bills
11 New Toolkits Help Prepare for Candidate Meetings
12 NARFE Bill Tracker Columns
4 From the President 34 Managing Money
22
36 The Informed Citizen Cover Story
38 Alzheimer’s Update
second careers. Leaving the cocoon of government employment behind, many federal employees embark on second careers. Wait until you see the range of their encore acts!
DEPARTMENTS
16 Questions & Answers 40 For the Record: TSP
Investments, COLA Chart
44
42 NARFE News convention Update. A member of the Alzheimer’s Association 2013 National Early-Stage Advisory Group will speak on opening day.
68 The Way We Worked special section
44 National Convention
On the Web
Update
visit us online at:
46 Candidates for NARFE
www.narfe.org
National, Regional Office
like us on facebook:
NARFE National Headquarters follow us on twitter:
@narfehq
57 NARFE 2013 Financial Statement
ON THE COVER
Illustration by Bill Pragluski, Critical Stages, LLC
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june 2014 | Volume 90 | Number 06
Editor Margaret M. Carter Assistant Editor Ken Fanelli Editorial Administrator Toni Vallario Graphic Design Charlene Gridley Editorial Board Joseph A. Beaudoin, Paul H. Carew Elaine C. Hughes, Richard G. Thissen Editorial Office: narfe magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Email: communications@narfe.org Advertising Sales: Warren Berger Media People Inc. 122 East 42nd St., Suite 725 New York, NY 10168 Phone: 212-779-7172, ext. 223 Email: wberger@mediapeople.com NARFE for the Visually Impaired On the Telephone: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-5047300 or go to www.nfbnewsline.org. On 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 Active and Retired Federal Employees Association NATIONAL OFFICERS JOSEPH A. BEAUDOIN, President; natpres@narfe.org PAUL H. CAREW, Vice President; natvp@narfe.org ELAINE C. HUGHES, Secretary; natsec@narfe.org RICHARD G. THISSEN, Treasurer; nattreas@narfe.org
REGIONAL VICE PRESIDENTS
REGION I Arthur Pike (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 207-764-4468 Email: artpike1937@aol.com REGION II Evelyn Kirby (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-604-1141 Email: ekirby@atlanticbb.net REGION III Donald Stewart (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) Tel: 305-442-6388 Email: dejs33149@aol.com REGION IV Paul E. Johnson (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 812-306-5137 Email: pejohnson@tds.net REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 620-241-1131 Email: ek617@att.net
Here’s How to Contact Us… If you want to:
Join NARFE Call (toll-free): 800-627-3394 or go to: www.narfe.org Change your address, phone number or email Call (toll-free): 800-456-8410 Email: memberrecords@narfe.org
REGION VI Jerome S. Smith (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-534-5849 Email: retiredjer@aol.com REGION VII Frank Impinna (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 303-482-1747 Email: impinna@gmail.com REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) Tel: 707-644-7565 Email: hlz17@aol.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) Tel: 360-692-9741 Email: lannyjean@comcast.net REGION X William F. Martin (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 540-872-3345 Email: billmartin@narferx.org
For any other NARFE matter
Call NARFE Headquarters: 703-838-7760 Email: hq@narfe.org Fax: 703-838-7785 Write: NARFE 606 N. Washington St. Alexandria, VA 22314
www.narfe.org
narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $45. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2014, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in narfe, but at the same time we will not undertake to guarantee the reliability of our advertisers.
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From the President
online candidate forums
I
nternet-based technology has brought us all closer together, allowing us to see and hear one another remotely in
real-time. This phenomenon of modern communication has gone beyond “Skyping” with loved ones and friends and now is a medium for the critical exchange of information and ideas. This is why we, for the first time, will be using a webinar-style, video-over-Internet venue for our upcoming NARFE candidate forums.
First, I want to thank the men and women who have announced their candidacies for NARFE office and who will answer your questions during these forums. Their running for leadership positions is a testament to their commitment to
NARFE and their desire to be agents of change in such a transitional – and transformational − time in the Association’s history. As you probably already know, my second term as National President expires this year, so I cannot run for Association president again under our bylaws; but I can moderate these online candidate forums! The first-such events – for the National President and National Treasurer candidates − will take place on Wednesday, May 28, soon after you receive this issue in the mail. The entire schedule is available on p. 46. The software we will be using, Citrix GoToWebinar, can accommodate as many as 1,000 attendees per forum; sign up soon through the NARFE website, www.narfe.org. Instructions will be available on how to submit questions and how to use the GoToWebinar software. Email messages confirming participation and detailing access information will go out the day before each event. Recordings of the candidate forums will be available on the NARFE website. Internet-based forums are a new version of the old town hall meeting. In bringing this democratic process of officer-vetting to many members at once, we hope that you will help elect NARFE’s leaders with greater confidence than ever.
Joseph A. Beaudoin NARFE national President natpres@narfe.org
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year for members up to age 22. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in your Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under your Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust
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Washington Watch
budget would increase retirement contributions
T
he House of Representatives approved a budget resolution that calls for increases in retirement contributions by federal employees and reductions in
the size of the federal workforce. However, the resolution will have no effect on spending levels for fiscal year 2015 because the Murray-Ryan budget agreement reached last December set budget levels for both the 2014 and 2015 fiscal years. The House budget measure, which passed April 10 by a vote of 219-205, will not be considered by the Senate. Nonetheless, votes on the resolution, as well as on proposed alternatives, reflect the policy views of members of Congress, setting the stage for the 2014 congressional elections as well as future negotiations over budgets for fiscal year 2016 and beyond. With top-line spending levels agreed to for fiscal year 2015, the main purpose of the budget resolution, authored by House Budget Chairman Paul D. Ryan, R-WI, was to advance specific, planned spending levels for fiscal years 2016 through 2024. The budget is accompanied by a set of policy proposals, reflecting the views of 8
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its supporters regarding government spending on defense, nondefense and entitlement programs, such as Medicare and Medicaid, that have typically divided Democrats and Republicans. Hits to Feds. The Housepassed budget resolution proposes additional cuts to the federal workforce unrelated to changes in program spending. Cuts in overall spending would likely necessitate some workforce reductions, but the budget plan calls for an across-the-board reduction in the size of the workforce, regardless of agency need. The budget would achieve this decrease through
attrition, replacing every three employees who retire with one person. National security, however, would be exempt. The budget also seeks to reduce employee compensation by taking more from employees’ paychecks to pay for their retirement, without any corresponding increase in benefits. NARFE President Joseph A. Beaudoin denounced the proposals, saying: “Federal employees have endured a three-year pay freeze, furloughs due to sequestration, a government shutdown and increased retirement contributions for new employees. Through these sacrifices, federal workers already have contributed more than $120 billion toward deficit reduction.” Beaudoin said the budget passed by the House would demand an additional $125 billion in federal employee sacrifices through the proposed increased retirement contributions. “This is nothing more than a poorly disguised pay cut,” he said. Beaudoin labeled the workforce reductions called for in the budget
BILL INTRODUCED TO GIVE FEDS A 3.3 PERCENT RAISE “arbitrary” and harmful. “These cuts would diminish the government’s capacity to perform essential functions. Ultimately, attrition proposals such as this fail to save much money, as work is simply shifted to contractors.” Chained CPI. During debate on the budget resolution, the House voted down several alternative budgets offered in the form of amendments, including one offered by the Republican Study Committee that called for reduced cost-of-living adjustments (COLAs) to Social Security benefits and federal retirement annuities. That amendment set spending levels lower than the Ryan measure and proposed to meet those levels by switching to the Chained CPI to calculate COLAs to federal benefits. The Chained CPI would lead to smaller COLAs for our nation’s seniors and veterans. NARFE strongly opposes this change. The amendment was defeated on a vote of 133-291. —By John Hatton, deputy legislative director
Join the team! HELP NARFE RESPOND QUICKLY when Congress threatens to change your benefits. Go to www. narfe.org, log in, select “Legislation” in the dropdown menu and see the invitation to join the NARFE Rapid Response Team in the center of the page. Or call, toll-free, 800-456-8410 to add your email address to your NARFE member record.
A
lthough President Obama’s budget proposal includes a mere 1 percent pay raise for federal employees in calendar year 2015, a bill recently introduced in the House would authorize a 3.3 percent raise. “After a three-year wage freeze, wagereducing work furloughs, sequester cuts and a government shutdown, our nation’s dedicated federal employees deserve fair compensation,” said Rep. Gerald E. Connolly, D-VA, who introduced the Federal Adjustment of Income Rates (FAIR) Act of 2014, H.R. 4306. The bill aims to close the growing gap between public- and private-sector pay, now at 35 percent, according to the Federal Salary Council. Federal employees lost more than $1 billion in wages because of sequestration-related furloughs, had their pay frozen for three years and received only a 1 percent raise this year. In addition, Congress twice enacted laws requiring new hires to contribute more to their retirement without any additional benefit: Employees hired in 2013 pay 3.1 percent; new hires in 2014 (and beyond) pay 4.4 percent. In all, federal employees have contributed $120 billion toward deficit reduction in the past four years. Meanwhile, privatesector wages rose 6.5 percent and the cost of living increased 7 percent during that time. NARFE President Joseph A. Beaudoin thanked Connolly for his leadership on this issue. “Providing our public servants adequate compensation is about more than
just fairness, it is about maintaining an efficient and effective federal government,” Beaudoin said. H.R. 4306 is cosponsored by Reps. Matt Cartwright, D-PA; Elijah E. Cummings, D-MD; Keith Ellison, D-MN; Ben Ray Lujan, D-NM; Michelle Lujan Grisham, D-NM; Stephen F. Lynch, D-MA; James P. Moran, D-VA; Eleanor Holmes Norton, D-DC; Charles B. Rangel, D-NY; C.A. Dutch Ruppersberger, D-MD; John F. Tierney, D-MA; Chris Van Hollen, D-MD; Juan Vargas, D-CA; and Frederica S. Wilson, D-FL. It has been referred to the House Committee on Oversight and Government Reform. —By Jason Freeman, Legislative Staff Assistant
Legislative Resources • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE Legislative Department staff, distributed via email and available by phone (toll-free) at 877-217-8234 and online at www.narfe.org. • Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.
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Washington Watch
House Committee approves two appropriations bills
B
efore adjourning for the Passover/Easter District Work Period in April, the House Appropriations Committee gave its final approval to the first two of the 12 annual appropriations bills for fiscal year (FY) 2015, which begins October 1. One bill covers funding for the Department of Veterans Affairs and military construction. The other covers the Legislative Branch.
work. That led committee Democrats to accuse their majority colleagues of making empty promises on these early bills, only to make it more difficult, if not impossible, to later move the larger domestic agency funding measures, including funding for the Departments of Labor, Health and Human Services, and Education. While the House Appropriations Committee was considering these
The proceedings were something of a love fest, in marked contrast to past acrimonious action. The proceedings of the committee were something of a love fest, in marked contrast to past acrimonious committee action. Thanks to the Ryan-Murray budget agreement passed last December, the overall level for nonemergency discretionary spending for FY 2015 will be capped at just under $1.014 trillion – roughly the amount appropriated for the current fiscal year. Under the agreement, an estimated $492 billion will go to domestic and foreign aid programs, while the balance is dedicated to defense-related spending. House Appropriations Chairman Harold Rogers, R-KY, and Senate Appropriations Chairman Barbara A. Mikulski, D-MD, have publicly committed to living within the parameters of the Ryan-Murray agreement. One wrinkle: The House Appropriations Committee acted without the Congressional Budget Actmandated “302 (b)” subcommittee allocations for all 12 subcommittees in place prior to beginning its 10
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funding actions, the full House of Representatives was debating, and eventually passing, an FY 2015 budget resolution (see story, p. 8). Chairman Rogers announced his intention to complete committee action on all 12 measures by the end of June and have them approved by the House before the August congressional recess. In a private meeting, committee Ranking Minority Member Nita M. Lowey, D-NY, shared her expectation that congressional Republicans would not allow final action on any of the 12 appropriations bills until after the November midterm elections in their hopes that Republicans might be able to rewrite the measures after picking up seats in the House and possibly regaining majority control of the Senate. The Senate Appropriations Committee also has begun its work on the FY 2015 spending bills but has not publicly stated a timeline for completion. —By Alan Lopatin, Legislative Counsel
MYTH vs. REALITY Myth: The Federal Employees’ Compensation Act (FECA), which provides compensation benefits to civilian employees disabled or injured on the job, provides more income for recipients than they would have received if they had been able to keep working. Reality: In fiscal year 2012, the program provided $3.025 billion in benefits to approximately 242,000 workers and survivors for work-related injuries or illnesses. Of these benefit payments, $1.956 billion was for wage-loss compensation, $929 million for medical and rehabilitation services, and $140 million for death benefit payments to surviving dependents. Using these numbers, the average wage-loss replacement is only $8,000 annually. FECA provides disability compensation based on the illness or injury. If the employee has no dependents, compensation is generally payable at the rate of two-thirds of predisability gross wages, tax-free; if the employee has one or more dependents, compensation is threefourths of predisability gross wages, tax-free. FECA payments grow with the annual cost-of-living adjustment (COLA), while federal salaries are increased by Congress, typically at an amount greater than the COLA.
New Toolkits help prepare for august candidate meetings
A
s we get closer to August, Individual Level; “NARFE Meet Your Can• Legislative Activities at the didates Month,” planning Leadership Level; for meetings with incumbents and • Campaign Activities; challengers should be moving for• Media Outreach; and ward. To help NARFE members • Field Plan. and leaders prepare for campaign Each document within the indioutreach, the NARFE Legislavidual toolkits is available separately on the NARFE website. tive Department has revamped For the August recess, we the Protect America’s Heartbeat encourage NARFE members Toolkit. and leaders to take advantage of The larger toolkit has been dithe Legislative Activities at the vided into six separate toolkits: Leadership Level and Campaign • NARFE Issue Briefs and Fact Activities toolkits. Sheets; TheAM Legislative • Legislative Activities at the 4/1/14 9:47 2013-14_PAC_Coupon_2013 Coupon Page 1 Activities at the
Leadership Level toolkit provides information on inviting members of Congress to your meetings, taking advantage of your newsletter and preparing for a meeting with a sitting member of Congress. In the Campaign Activities toolkit, NARFE members can find out how to organize a candidate forum and get updates on how the Hatch Act might impact NARFE activists. To access the new toolkit materials, see: www.narfe.org/ heartbeat/resources.cfm. —By Sarah Weissmann, grass-roots program manager
NARFE-PAC CONTRIBUTION FORM Name: _____________________________________ NARFE Member Number: ______________________ I would like to make a one-time contribution of: q $100 Gold (qualifies for Gold 2013-14 NARFE-PAC lapel pin and a blue NARFE-PAC LEADER hat)
q $50 Silver (qualifies for Silver 2013-2014 NARFE-PAC lapel pin) q $20 Basic (qualifies for Basic 2013-2014 NARFE-PAC lapel pin) q Other: ______ -orI would like to be a Sustainer and make a monthly credit card contribution to NARFE-PAC of: q $25/month q $10/month
q Please find my check or money order enclosed payable to NARFE-PAC q Please charge to my credit card (required for monthly contribution) Credit Card Information Type: q MasterCard q VISA q Discover q AMEX Card #: ________________________________ Expiration Date: ____ / ____ Name on Card:__________________________ Signature: ______________________________ Date: __________________________________
q Other: ______/month (minimum of $10) Monthly contributions qualify you to receive a NARFE-PAC Sustainer lapel pin along with a blue NARFE-PAC LEADER hat.
q I do not want to receive any gifts for my contribution marked above.
Mail to: National Active and Retired Federal Employees Association Attn: NARFE-PAC 606 North Washington St. | Alexandria, VA 22314
Only members of the National Active and Retired Federal Employees Association may contribute to NARFE-PAC. NARFE will neither favor nor disadvantage anyone based on the amount of a contribution or the failure to make a voluntary contribution to this political action fund. NARFE-PAC contributions are not deductible for federal income tax purposes.
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Washington Watch
narfe 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
Bill Number / Name / Sponsor H.R. 26: Deferred Benefits Adjustment Act of 2013 / Rep. Nydia M. Velázquez, D-NY Cosponsors: 1 (D)
DEFERRED ANNUITIES
supporting federal employees
Federal Compensation
Paid Parental Leave
H.Res. 388: Expressing the sense of the House of Representatives supporting federal employees / Rep. Marcia L. Fudge, D-OH
Latest Action(s)
Provides for the indexation of deferred annuities, including survivor annuities, and for individuals becoming subject to the Federal Employees Retirement System by election. Terminates the entitlement of a survivor who remarries before age 55 to an annuity based on the service of a deferred annuitant who dies before establishing a valid claim for a Civil Service Retirement System annuity.
Referred to the House Committee on Oversight and Government Reform
Recognizes that the work that federal employees perform should be honored and respected. Outlines several ways Congress should not target federal employees.
Referred to House Committees on Oversight and Government Reform, and Ways and Means
Provides federal employees with a 3.3 percent pay raise in 2015.
Referred to the House Committee on Oversight and Government Reform
H.R. 4306: Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerald E. Connolly
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narfe, January 2014, p. 10
See story, p. 9
Cosponsors: 14 (D) H.R. 517: To provide that four of the 12 weeks of parental leave made available to a federal employee shall be paid leave / Rep. Carolyn B. Maloney, D-NY
H.R. 3310: Annuity Safety and Security Under Reasonable Enforcement Act of 2013 / Rep. Matt Cartwright, D-PA Cosponsors: 51 (D)
Allows federal employees to substitute, for four weeks, any available paid leave for any leave without pay available for either the birth of a child or placement of a child for either adoption or foster care.
Referred to the House Committee on Oversight and Government Reform
Requires appropriate disReferred to four House closures regarding “pension committees advance” schemes and caps the interest rates on these narfe, January 2014, p. 11 advances. Also creates a private right of action to allow individuals to enforce these laws in court.
NARFE’s Position: 12
narfe, April 2013, p. 9
Cosponsors: 42 (D)
Cosponsors: 19 (D)
Pension scam protection
What Bill Would Do
Support
Oppose
No position
ISSUE
Bill Number / Name / Sponsor H.R. 1367: FEHBP Prescription Drug Integrity, Transparency, and Cost Savings Act / Rep. Stephen F. Lynch, D-MA Cosponsors: 3 (D)
Health Care
H.R. 1780: To provide that the only health plans available to the president, vice president, members of Congress and federal employees are those created under the Patient Protection and Affordable Care Act or offered through a health insurance exchange / Rep. Dave Camp, R-MI
What Bill Would Do
Latest Action(s)
Provides the Office of Personnel Management greater oversight authority over the prescription drug contracting and pricing methods of the Federal Employees Health Benefits Program (FEHBP). It requires that pharmacy benefit managers return 99 percent of all rebates, market share incentives and other monies received from pharmaceutical manufacturers for FEHBP business and caps prescription drug prices.
Referred to the House Committee on Oversight and Government Reform
Removes federal employees from the Federal Employees Health Benefits Program (FEHBP) and places them in the health exchanges created under the Affordable Care Act.
Referred to the House Committees on Oversight and Government Reform, Energy and Commerce, and Administration
narfe, June 2013, p. 9
narfe, July 2013, p. 15
Cosponsors: 30 (R) H.R. 3319: Equal Healthcare Access Act / Rep. Darrell Issa, R-CA Cosponsors: 1 (D), 8 (R)
Requires the Office of Personnel Management to administer a health insurance plan for nonfederal employees under the existing Federal Employees Health Benefits Program.
Referred to House Committees on Oversight and Government Reform, Energy and Commerce, and Ways and Means narfe, January 2014, p. 9
H.R. 1795: Social Security Fairness Act of 2013 / Rep. Rodney Davis, R-IL GPO/WEP
FEDERAL PENSIONS
Cosponsors: 83 (D), 33 (R)
Repeals both the Government Referred to the Pension Offset (GPO) and the House Committee on Windfall Elimination Provision Ways and Means (WEP).
S. 896: Social Security Fairness Act of 2013 / Sen. Mark Begich, D-AK
Referred to the Senate Finance Committee
Cosponsors: 13 (D), 3 (R), 1 (I)
narfe, July 2013, p. 16
S. 1678: Public-Private EmEliminates the defined-benefit ployee Retirement Parity Act portion of the Federal Em/ Sen. Richard Burr, R-NC ployees Retirement System (FERS), leaving only Social Cosponsors: 2 (R) Security and the Thrift Savings Plan for FERS employees in retirement.
Referred to the Senate Committee on Homeland Security and Governmental Affairs narfe, February 2014, p. 8
(Continued on p. 14) w w w. n a r f e . o r g
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Washington Watch
narfe bill tracker (Continued from p. 13) ISSUE
Bill Number / Name / Sponsor H.R. 630: The Postal Service Protection Act / Rep. Peter DeFazio, D-OR Cosponsors: 171 (D), 7 (R)
What Bill Would Do Eliminates the future retiree health benefit prefunding requirement, protects six-day mail delivery and prevents the closure of rural post offices.
S. 316: The Postal Service Protection Act / Sen. Bernie Sanders, I-VT
Cosponsors: 2 (R)
S. 1486: Postal Reform Act / Sen. Tom Carper, D-DE Cosponsors: 1 (R)
Thrift Savings Plan
Federal Employee Back Pay
H.R. 4193: Smart Savings Act / Rep. Darrell Issa, R-CA Cosponsors: 4 (D), 2 (R)
H.R. 3744: Federal Employee Pay Restoration Act / Rep. Derek Kilmer, D-WA
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Moves the U.S. Postal Service to five-day mail delivery, removes protections for injured workers and eliminates tothe-door delivery in favor of cluster boxes.
Approved by the House Committee on Oversight and Government Reform on 7/24/13
Threatens integrity of the Federal Employees Health Benefits Program by removing postal workers and retirees, cuts workers’ compensation benefits and eliminates Federal Employees Retirement System pension for new hires.
Amended and approved by the Senate Committee on Homeland Security and Governmental Affairs on 2/6/14
New federal employees automatically enrolled in the Thrift Savings Plan would have their funds deposited in the L (Lifecycle) Fund instead of the G Fund.
Approved by the Oversight and Government Reform Committee on 3/12/14
Provides back pay to federal employees who were furloughed as a result of sequestration.
Referred to the House Committee on Financial Services
narfe, April 2014, p. 6
narfe, May 2014, p. 8
Cosponsors: 1 (D), 1 (R)
H.R. 4202: CPI-E Act of 2014 / Rep. Mike Honda, D-CA ANNUITY COLA
Referred to House Committees on Oversight and Government Reform and Judiciary Referred to the Senate Committee on Homeland Security and Governmental Affairs
Cosponsors: 30 (D) H.R. 2748: Postal Reform Act / Rep. Darrell Issa, postal reform R-CA
Latest action(s)
Requires the use of the Referred to three Consumer Price Index for the House committees Elderly (CPI-E) instead of the current CPI-W to determine narfe, May 2014, p. 8 cost-of-living adjustments for federal civilian annuities, military retirement and certain veterans’ benefits.
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Questions & Answers
The following Questions & Answers were compiled by NARFE’s Federal Benefits Service Department staff. NARFE does not provide legal, financial planning, or tax advice or assistance.
employees Military Deposit, pay or not?
Q
I’ll be retiring in the next year or so under the Civil Service Retirement System (CSRS). The question has come up about paying a deposit for my military service. I’ve heard some workers say I have to pay the deposit, and others say I don’t. Who is correct?
A
Civil service retirement law allows you to use your military service in combination with your federal civilian service in computing your CSRS annuity. The date on which you began your federal civilian service will determine if you must pay a military deposit for CSRS credit. If you began working for the federal government prior to October 1, 1982, and pay the military deposit plus interest prior to retirement, you will receive credit for your military service for both eligibility purposes and in the computation of your CSRS retirement. However, you do not have to pay a military deposit to get credit
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for your military service in your CSRS computation if you are not eligible for Social Security benefits when you reach age 62. If you began your federal civilian career on or after October 1, 1982, you must pay the military deposit plus interest in order to use your military service in the computation of your CSRS annuity, even if you are not eligible for Social Security benefits at age 62. As mentioned above, you must pay the military deposit before retiring. So start well in advance of your planned retirement date. Make a request to pay your military deposit through your human resources (HR) office, which will
provide you with form SF 2803, Application to Make Deposit or Redeposit, and form RI 20-97, Estimated Earnings During Military Service. Send the earnings form and a copy of your military discharge to the appropriate military finance center. After you receive the information, take it and the application form to your HR office. You will be able to pay with a lump sum or by installments through payroll deductions.
Earnings limit on fERS Annuity Supplement
Q
I will be retiring on August 31, 2015. I understand my annuity will start on September 1, 2015. I will be age 56 with 30 years with the Postal Service. I will be eligible for the Federal Employees Retirement System (FERS) Annuity Supplement, and I know it will be subject to the Social Security earnings
limit. Will the supplement be subject to the earnings limit for 2015?
A
The earnings limitation applies to income from wages or self-employment after retirement. It is the same as the earnings limitation for Social Security benefits, which is set each year by the Social Security Administration. (In 2014, it is $15,480.) Your FERS annuity supplement would be reduced by $1 for every $2 you exceed the earnings limitation in a year. There is no reduction until after the first calendar year you receive the supplement. Then your earnings during the first year are compared to the earnings limit for that year. Your monthly annuity in the second calendar year would be reduced by one-twelfth of any “excess earnings.” Excess earnings are 50 percent of the amount by which your earnings exceeded the Social Security limit.
Life insurance for part-time employee
Q
I am a new part-time employee with the federal government and would like to know if part-time employees are entitled to the Federal Employees’ Group Life Insurance (FEGLI)?
A
Most federal employees, including part-time employees, are eligible for FEGLI coverage. However, there are some exceptions. As stated in the Office of Personnel Management’s Federal Employees’
Group Life Insurance Program Handbook, you are excluded from coverage if: 1. You are serving under an appointment of one year or less; 2. You are employed for an uncertain or purely temporary period, employed for brief periods at intervals or are expected to work less than six months in each year; 3. You are an intermittent employee (a non-full-time employee without a regularly scheduled tour of duty); 4. Your pay, on an annual basis, is $12 a year or less; 5. You are a beneficiary or patient employee in a government hospital or home; 6. You are paid on a contract or fee basis; or 7. You are paid on a piecework basis. However, within these categories, there may be exceptions where coverage is available. The Handbook is available at www. opm.gov; click on “Life Insurance” at the bottom of the home page; then on “Reference Materials.”
Phased retirement
Q A
I have heard that the new phased retirement program is coming. How will it work?
The phased retirement program for federal employees, which became law in July 2012, allows retirement-eligible federal employees to partially retire while working part time. The Office of Personnel Management (OPM) has not
finalized regulations to implement the phased retirement program. Agencies cannot offer this option until OPM does so. This law offers an incentive for employees with valuable experience to phase into retirement by providing them with more income than they would earn working part time and more income than they would earn by fully retiring. Once they fully retire, they would be entitled to a greater annuity than if they had fully retired at the time of transition to phased retirement, but less than if they had continued employment on a full-time basis during the period of phased retirement. Participating employees would be paid for the part-time service they continue to provide the government and would receive additional credit for that service toward their full retirement. These employees also would begin receiving annuity payments, consistent with the retirement benefits they were entitled to prior to entering phased retirement status, prorated for the portion of the workweek they spend in retirement. When they fully retire, their annuity would be recalculated to provide prorated service credit for the additional time they worked in phased retirement.
retirees disability filing
Q
I was employed as a federal law enforcement officer, was injured on the job and eventually filed for w w w. n a r f e . o r g
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Questions & Answers
retirement. Is it possible for me to change my retirement to disability retirement?
A
You can submit an application for disability retirement within one year after your separation from employment provided you did not elect the alternative form of annuity with a lump-sum payment equal to your retirement contributions. You and your former employing agency must submit evidence that shows you became disabled while employed in a position subject to your retirement coverage, and you and your agency must provide evidence that you were unable to perform useful and efficient ser-
vice because of disease or injury in the position from which you retired. Your former agency also will have to certify that it could not reasonably accommodate your condition. Moreover, you must not have declined an offer of reassignment to a vacant position in the commuting area at the same grade or pay level and tenure.
Who is the Beneficiary?
Q
If I do not have a designation of beneficiary form on file with the Office of Personnel Management (OPM) for my Federal Employees’ Group Life Insurance, who will get the insurance proceeds?
A
If you do not have a designation of beneficiary on file, OPM will pay the first person listed below who is alive on the date the payment is due: • Your widow or widower; • Your child or children (descendants of a deceased child may qualify); • Your parents in equal shares or all to the surviving parent; • The administrator or executor of your estate; or • If none of the above, your next of kin as determined under the laws of the state in which you live. If you are satisfied with the payment order shown above, there is no need for you to have a designation of beneficiary. If you want
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Chicago Doctor Invents Affordable Hearing Aid Outperforms Many Higher Priced Hearing Aids
Reported by J. Page CHICAGO: A local board-certified Ear, Nose, Throat (ENT) physician, Dr. S. Cherukuri, has just shaken up the hearing aid industry with the invention of a medical-grade, affordable hearing aid. This revolutionary hearing aid is designed to help millions of people with hearing loss who cannot afford—or do not wish to pay—the much higher cost of traditional hearing aids.
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Board-Certified ENT Physician
Dr. Cherukuri knew that untreated hearing loss could lead to depression, social isolation, anxiety, and symptoms consistent with Alzheimer’s dementia. He could not understand why the cost for hearing aids was so high when the prices on so many consumer electronics like TVs, DVD players, cell phones and digital cameras had fallen. Since Medicare and most private insurance do not cover the costs of hearing aids, which traditionally run between $2,000-$6,000 for a pair, many of the doctor’s patients could not afford the expense. Dr. Cherukuri’s goal was to find a reasonable solution that would help with the most common types of hearing loss at an affordable price, not unlike the “one-size-fits-most” reading glasses available at drug stores.
He evaluated numerous hearing devices and sound amplifiers, including those seen on television. Without fail, almost all of these were found to amplify bass/ low frequencies (below 1000 Hz) and not useful in amplifying the frequencies related to the human voice.
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NARFE at Your Service to designate a beneficiary, go to www.opm.gov and click on “Life Insurance” at the bottom of the page for a link to form SF 2823.
Paying for Hearing aids
Q A
Will Medicare Part B pay for prescription hearing aids?
No. Medicare does not cover everything. If you need services that Medicare does not cover, you will have to pay for them yourself unless you have other insurance or you are in a Medicare health plan that covers these services. Some of the items and services
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that Medicare does not cover are: • Long-term care; • Most dental care; • Eye examinations related to prescribing glasses; • Dentures; • Cosmetic surgery; • Acupuncture; • Hearing aids and exams for fitting them; and • Routine foot care. tTo obtain an answer to a federal benefits question, NARFE members should call 703838-7760 and ask for the Federal Benefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.
NARFE service officers are available to answer questions and to assist in helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. For the nearest service officer, call NARFE (toll-free) at:
800-456-8410. NARFE Service Centers also are available in some areas. Use the Service Center listings on the NARFE website,
www. narfe.org.
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Cover Story
sECOND CAREERS
After leaving the federal cocoon, the sky’s the limit for former government employees
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Illustration by Bill Pragluski, Critical Stages, LLC
By David Tobenkin Many have lamented the crisis of a declining number of honeybees worldwide, which has implications for fertilization of crops, flowers and other plants. Janet LaMunyon Haselmaier, a management support assistant at NASA, and her husband, Haynes, an engineer providing services as a contractor to NASA, are doing something about it. A year ago, the couple, who are part-time beekeepers in Pearl River County, MS, started a small business on the side of their full-time jobs to market a patent-pending product invented by Haynes. The invention, known as the Beetle Baffle, keeps the small hive beetle − an invasive insect species harmful to honeybees – away from the beehives to which it is attached. “Our product may save many millions of bees and, in turn, play a role in reducing the cost of food nationally and globally,” says Haselmaier, who responded to a narfe magazine reader survey regarding federal employee second careers. “We anticipate the product being sold worldwide and hope that it will become accepted as an essential part of every beehive.” She says that more than 3,000 Beetle Baffles have been sold in almost every state in the United States and in Australia. If product sales take off, they plan to
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sECOND CAREERS retire and pursue it as a full-time business in four years, Haselmaier says. Long employment tenure is such a hallmark of federal government service that for many federal employees, it can be difficult to imagine working anywhere else. But many federal employees are finding that the grass can be greener − in a variety of senses − by pursuing second careers outside of the federal government. For some, like Haselmaier, second careers are a way to fulfill a passion or lifelong dream.
A WAY TO MAXIMIZE EARNINGS
For others, second careers are a bottom line or career control decision, where employees leverage their federal knowledge, leadership skills or entrepreneurial abilities to make more money or enter a profession where their earnings will not be limited by the top of a government-mandated pay scale. “I earned more in my first 10 years as a real estate broker than in my total 34-year federal career,” says Ron Walton, who in 1994 left a career as a supervisor for several federal agencies working on water-related geological computer database management to start his own real estate brokerage, which he continues to manage. “I am making as much as I need to survive with a federal pension, which is insufficient. I plan to continue until I die.”
A WAY TO FULFILL DREAMS
And for others, the second career is largely about facilitating a more interesting retirement. In 2005, “Crazy Jumpin’” Jack Gregory retired from the U.S. Forest Service, Law Enforcement and Investigation Staff, as Special Agent in Charge, Southern Region, Atlanta, GA, and picked up his scuba gear. So what are the benefits for Gregory of his new work as lead master scuba repair technician at the Dive Shop Inc., in Marietta, GA? “I don’t know where to begin on this,” Gregory says. “First, I can get all scuba gear at cost, which is huge if you are a technical cave diver, as I am; second, it’s a tremendous benefit to be able to claim under miscellaneous expenses on the [Internal Revenue Service income tax form] Schedule A, an additional $20,000-$30,000 per year in scuba-related writeoffs; and, finally, 24
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it’s a great opportunity to network with a totally different group of folks rather than your typical government employee.”
THE REASONS ARE VARIED AND COMPLEX
There may be more federal employees who intend to follow their lead. Fifty percent of federal employees say they are considering employment outside of government, according to a scientific poll of 370 federal employees conducted by the Chantilly, VA-based government market research firm Market Connections Inc. and FierceGovIT this past December and January. Respondents gave the following top three reasons for considering leaving federal government employment: • The federal employee pay freeze (44 percent); • The frustrating political environment (41 percent); and • The perception of better salary opportunities in the private sector (34 percent). But the reality of second careers for many federal employees is that they frequently are a complex balancing act between financial needs; altruistic goals; allowing enough time for family, fun and travel; not compromising health; and developing new sides of their personalities. Determining if a second career is worthwhile and, if so, getting the right second career fit, may take considerable effort.
THE TYPICAL PATTERNS
There are several typical patterns of federal employees seeking second career acts, notes Tammy Flanagan, senior benefits director for the Rockville, MD-based National Institute of Transition Planning Inc., which conducts retirement planning workshops and seminars for federal employees. One broad group pursuing second careers are federal employees in careers where they are required to retire early but are allowed to collect retirement benefits, including many law enforcement positions, Flanagan says. “For the younger employees who qualify to receive unreduced retirement benefits, a second career can mean a second income to put away for the future to pay off the mortgage, college
loans or their children’s weddings − so that they can retire debt free,” Flanagan says. “They bank one of the two checks and live on the other one. At the end of five or 10 years, they can pay off their debts and retire with their pension intact and their 401(k) intact. They generally want to retire as soon as possible, so that they are still marketable to begin a second career. That group typically are those who can retire with immediate benefits at younger ages, like law enforcement, CIA officers and foreign service officers, who have mandatory retirement when they are 57 or 60. As soon as they are eligible, they look for a second career . . . and many companies are looking for them.” A second group, she says, are those who are older, spent most of their careers in federal service and qualify to receive ample retirement benefits but want to continue to work as a hobby and to supplement their retirement benefits. “They are the employees who retire past their normal retirement age of 55 or 60, and most don’t want to work a second career,” says Flanagan. “This group can afford to retire; but they aren’t ready to stop working, and they want to continue to use their skills. Many of them want something that is fun; a hobby that is profitable.” A third group includes those in mid-career who decide that federal service is not for them. Members of that cohort are in their 30s and 40s, are too young to qualify for sufficient retirement benefits and are disillusioned with federal service, Flanagan says. “Maybe they want to go to the private sector and hope they can make twice the salary, or they think that they will be happier there,” Flanagan says. “The problem is that that doesn’t always happen. I worry most about that group. They need to understand that it isn’t just the salary that they are trading. It’s hard to duplicate federal benefits, including a certain level of job security, a generous pension and lifelong insurance. They need to understand that it’s easy to leave federal government but much harder to come back.”
THE FINANCIAL DECISION
The sooner a federal employee gets a handle on what he or she will need to live on during their remaining working years and during retirement, how much they can expect to receive from
For some, like Haselmaier, second careers are a way to fulfill a passion or lifelong dream. retirement benefits accrued to date, and how much they will need to supplement anticipated retirement income, the better their choices will be as to whether to pursue a second career and, if so, how much emphasis to place on financial compensation in deciding what to do. If an employee’s agency will evaluate their retirement benefits, it is to his or her advantage to request that it do so. Lapses in service, money owed to the federal government, withdrawals from accrued benefits, and discrepancies in their official federal service record can sometimes mean that employees have less retirement benefits coming than they might think. Federal employees who will need to rely on significant money from their second career jobs face the biggest decisions, ones that should begin with the realization that the grass is not always greener outside the federal government. Perhaps the biggest factor is that − challenges to federal employees and their benefits on Capitol Hill notwithstanding − the federal government for most employees generally remains a far more secure place of employment than the private sector. At many private-sector businesses, where at-will employment is the norm, successive “fully satisfactory” ratings may earn the employee a ticket to the door; “outstanding” or “very good” are expected. Too, the speed and efficiency expected in the private sector can be a rude awakening for many transitioning federal employees. In addition, even if an employee performs well, many businesses respond to economic downturns by laying off employees. And a year or two out of the work force or being underemployed in mid- or late career can add up to a devastating financial hit. A critical question is just how competitive federal employees would be in the private sector. Several surveys have shown that the more education an employee has, the more earnings in the private sector tend to outpace those in the federal government. Other variables that w w w. n a r f e . o r g
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sECOND CAREERS increase marketability include the federal government connections and inside knowledge the employee can bring, the general health of the profession they are in, professional credentials and special skills they possess, security clearances, energy level, flexibility and adaptability, and networking and sales abilities. The stay-versus-go analysis also should include consideration of taking advantage of any available federal flexible employment options like alternative work schedules, reducing hours to part-time work, telework, and − when it is implemented − phased retirement. Those options can free up time to pursue part-time, or to test potential full-time, pursuits while keeping the main government gig as a safety net and continuing to let retirement benefits accrue. (A narfe magazine article analyzed the opportunities and challenges of moonlighting while still working full-time at a federal government job. See “Moonlighting,” narfe magazine, pp. 28-34, November 2013.) Those considering the jump also should carefully scrutinize benefits, not just cash compensation, including both what they will be offered at the new job and the federal benefits they may leave behind. The pensions that federal employees enjoy are the envy of many in the private sector, where traditional defined-benefit pensions have been replaced by defined-contribution 401(k)-type plans where employees are largely responsible for funding their retirements, not always with a company match. In contrast, federal employees receive a CSRS (Civil Service Retirement System) or FERS (Federal Employees Retirement System) pension based on their length of federal service and their high-three average salary in addition to a generous match on the Thrift Savings Plan (TSP) for FERS employees. In general, while some private-sector jobs sometimes pay more in salaries and, especially, bonuses, it is difficult to save enough in a 401(k) plan to equal lost pension benefits when leaving federal service at midcareer.
Aptitude and interest tests and self-help books can be useful.
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The TSP retirement package component of the FERS plan also should be compared with private plans, given a government match of up to 5 percent of pay, prudent management, extremely low costs (the average expense for the TSP is 29 cents per $1,000 per year) and a TSP Roth IRA option that may not be otherwise available to high-income, private-sector employees given a general income cap on eligibility for Roth IRAs. For some employees under the older CSRS retirement plan, which does not include a Social Security component, a key goal of second career employment, besides the prospect of some additional income, is to accumulate 40 credits to qualify for Social Security benefits. Employees can accumulate up to four credits per year, one for each $1,200 of income in 2014. Federal employees receiving a pension from work not covered by Social Security withholding (such as the CSRS) may be affected by the Windfall Elimination Provision, which will cause their earned Social Security retirement benefit to be computed under a modified (i.e., less generous) formula. In addition, employees who retire younger than age 62 under the FERS plan should be aware that the FERS Annuity Supplement can be reduced by post-retirement employment. Like the Social Security earnings test, this supplement is reduced by $1 for every $2 earned above an earnings cap of $15,480 in 2014. (The FERS Annuity Supplement is a post-retirement payment, in addition to the FERS basic retirement benefit, from the Office of Personnel Management for employees who are eligible for an immediate, unreduced retirement annuity until eligible for Social Security benefits at age 62.) Another key factor to look at is health insurance. Employees who resign from federal government service will lose access to the Federal Employees Health Benefits Program (FEHBP), unless they later return to the federal government to close out their final five years. Those who retire, are eligible for immediate retirement benefits and were continuously enrolled (or covered as a family member) in any FEHBP plan(s) for the five years of service immediately before the date their annuity starts, however, can keep their FEHBP plan. This can be a critical factor because many
private-sector employers will not provide health insurance to employees when they retire, forcing employees to buy retirement health insurance that often will be far more expensive because of their age or to rely on programs such as federal Medicare, once they are eligible. “One thing I warn retirees who are taking on a second career is sometimes the second employer will offer them free insurance, so they drop the federal plan, but they don’t realize that canceling FEHBP in retirement is a one-way ticket out,” Flanagan says. “A better idea might be to maintain the FEHBP plan while in the private sector. Tell them that you come with your own plan. Some employers like that they don’t have to insure you and may even offer a bonus equal to the cost of providing health insurance.” On the other hand, for older federal employees with adequate retirement savings, focusing on the financial aspects of a possible second career may be precisely the wrong thing to do. The most common advice regarding second careers of those surveyed was to do something you love or want to do. Many survey respondents warned that it is easy to fall into the trap of entering new employment to simply maximize financial gain. In many cases, if that is the only objective, federal employees would do far better financially by simply staying in their federal government job.
TAKING STOCK OF SELF
In all cases, federal employees considering a career transition will benefit from closely examining their second career goals. Moving to a second career requires both the “push” of frustration with an existing career and the “pull” of a new professional interest, notes Edward Honnold, a Washington, DC-based counselor and career consultant who provides career transition services to federal employees and others. Honnold has experienced this dynamic himself. A Yale Law School graduate, he says that in his early 40s, after 10 years of federal service as a legislative director for a member of Congress and as an attorney for the U.S. Agency for International Development, he felt increasingly dissatisfied with his work while at the same time becoming captivated by the idea of helping others. “I was unwilling to continue working just to
earn an income,” Honnold says. “I realized that my interests, weekend and evening activities, spare-time reading, and social contacts were all involved with human service.” Honnold’s transition from lawyer to counselor involved a large financial sacrifice. After 13 years of law practice, he obtained a master’s degree in social work and accumulated more than 2,000 hours of supervised service to obtain his clinical social work license and begin his new practice, at age 42. Now, 22 years later, he says it was the right choice. “Now I look forward to going to work,” Honnold says. “It is deeply satisfying to me.” About 75 percent of Honnold’s clients are federal employees. In every case, a client’s second career or new passion has been an extension of past skills and experiences that the client has already developed, either in the workplace or outside of it, before beginning the consultation, he says. Still, Honnold notes that for some employees who are at a loss, or whose pleasure centers have been deadened, aptitude and interest tests can prove useful. Many informal career transition self-help books also exist, such as What Color is Your Parachute? Another consultant who advises federal employees on career transitions, Peter Sherer, founder and CEO of Washington, DC-based Experience Matters, for the past nine years has assisted mostly more-senior federal employees looking to transition to either higher-paying, private-sector positions or alternative careers that focus on personal satisfaction rather than financial gain. “To me, the skills involved in a second career are less important than that you want to do it,” says Sherer, a Harvard Business School MBA and former Department of Health and Human Services executive. “That is hard for many feds. Many think backwards and say, ‘I’ve been in this field for 20 years’ and, as a result, the only answers they give themselves are to be a consultant, or start their own thing, or go to Arizona and play golf. Many say they need to make as much as they were making before they retired, but often that only adds up to $30,000 or $40,000 a year, which is a part-time job if they w w w. n a r f e . o r g
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sECOND CAREERS work in a field related to what they did. I help them identify what they really love to do. Some of my clients say, ‘I want to work part-time at something I love, such as taking care of animals – find my professional niche within it where I can use my skills as a part-time consultant.’ The other group I consult want to leave a current job where they make $160,000 and try to make $200,000 to $350,000 for five years to take care of any money problems they can imagine. But there are more of the first group than the latter one.” Sherer often asks clients to ramp up information interviews with individuals in fields of interest and actual potential employers to determine whether a particular second career is really for them and to gain connections and intelligence that will help in landing an actual job.
Getting PRIVATE-SECTOR READY
The hard lifting of determining what career to enter and how to get into it, however, will mostly fall on the federal employee. For many who have been in federal government service for a long time, examining the world of work outside of the federal government may be illuminating. They will find that the economic landscape has changed enormously over the past 20 to 30 years. Whole categories of jobs have been lost to outsourcing, offshoring or computer applications, or have been priced down. In many fields, the tempo of business has increased. Yet many private-sector employers do value the skills that federal employees bring. For those looking to use their federal skills to transition into other professions, some temporary and parttime employment agencies can be valuable resources that help federal employees successfully transition into the private or nonprofit sectors. “The federal employees we see looking to transition into something new are seeking second careers but not something full-time,” says Sheila Murphy, co-founder of FlexProfessionals, LLC, a McLean, VA-based recruiting and staffing company serving the Washington, DC, metropolitan area and offering part-time and flexible-hour work. “Many retiring federal employees want to keep their skills sharp and to stay engaged in the workplace. A lot of our clients are smaller government contractors who find the skills of former 28
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federal employees to be valuable − with procurement, contracting and acquisitions expertise probably the most valuable.” There are ways that individuals leaving federal government service can make themselves more marketable, says Patricia Porter, a senior recruiting manager at management consulting firm Booz Allen Hamilton, which, on average, selects 12.8 percent of its hires each year from former federal employees. “The most important aspect of presenting one’s professional experiences and specialized skills is ensuring that the information is presented in a way that a corporate recruiter will understand what the transitioning employee has done in his or her career,” Porter says. “It’s striking the balance between being specific enough about the specialized skills while not being too technical or specific that a recruiter won’t understand how the experiences and accomplishments will translate to industry. Federal employees should, for example, not use too many acronyms or government-specific terms. They also should let people know that they are transitioning by working their personal and professional networks, and should provide a comprehensive profile on professional networking sites such as LinkedIn.” As noted earlier, federal employees need to assess just how marketable they are and to see if there is anything that they can do to make themselves more so. A good example, Murphy says, are federal employees who wish to use their communications or writing skills in a second career. Many are not current with what employers want, she says. Most employers in the market segment she serves expect writers to not only produce copy that is grammatically and factually correct, but also text that is optimized for online search engines, designed for Web sites and email campaigns, and written for social media sites such as Twitter, LinkedIn and Facebook. It is not difficult to learn such skills, Murphy adds. A companion story in this issue (p. 29) examines the variety of careers that respondents to a narfe magazine survey have pursued.
BE AWARE OF ETHICS AND PROHIBITIONS
Those heading out to second careers also need to be aware that federal ethics rules impose
conflict-of-interest limitations, including checks on seeking employment while still in federal service and on what activities may be pursued after leaving a federal job. In general, an executive branch employee is free to seek post-government employment, but the employee may be disqualified from working on some government matters while doing so (see 18 U.S.C. § 208 and Subpart F of 5 C.F.R. part 2635). In addition, a former executive branch employee is prohibited from engaging in certain activities after leaving federal government service. For example, a former employee may be prohibited from having contact with an employee of any federal agency or court, on behalf of another person or entity, concerning an official matter with which the former fed was involved as a government employee (see 18 U.S.C. § 207). Different prohibitions apply to different classes of employees for different periods of time, and there are additional limitations. Therefore, before actually contacting potential employers or their agents for a second career − and definitely before they begin a second career − federal employees should discuss their plans with their agency’s ethics officers.
The Transition
When financial evaluation, self-assessment and career targeting have occurred, an actual transition to the new career can begin. Many
say that, ideally, this should occur long before the employee leaves his federal job. “A serious second career needs to be planned for while you are still working as a federal employee,” says scuba repair technician Gregory. “You have to plan, plan, plan and then actually start working in it well before retirement.” Sherer agrees that many start planning far too late. “My impression is that most federal employees − to the extent that they think about retirement − plan for the financial aspects of retirement but don’t think about what they will do with all the time available to them,” he says. “Their agencies don’t help counsel them except for the financial aspects of retiring. And federal employees themselves are often ambivalent about leaving. They are tired. What they have in mind is this to-do list of things around the house, taking care of their medical needs, spending time with grandchildren, and maybe a trip to Machu Picchu. Then they are out of a plan.” He predicts that that will eventually change. “Ten years from now, people will say to those in their early 50s, ‘What will you do for your second career?’ It will be a stage of life similar to going to college. Those doing it now are pioneers, and they are doing it without psychological and social support.” —David Tobenkin is a freelance writer based in the greater Washington, DC, area.
10 of the most Popular careers Below is a description of some of the more common types of second careers reported by narfe magazine survey respondents.
Similar Private-Sector Ventures
Many former federal employees hang out their shingle as consultants to their old agency or to clients with business before the agency. Larry Turner, a former senior scientist at the U.S. En-
vironmental Protection Agency (EPA), retired in 2004 and became a toxicology consultant earning $150 an hour, more than double his federal GS-15 salary. “If one is going to work in one’s professional field, one needs all of the positive contacts possible,” says Turner, who now helps clients understand and comply with EPA labeling and other regulations, and avoid exposing endangered and threatened species to pesticides. “Before you retire, demonstrate that you have qualities that w w w. n a r f e . o r g
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sECOND CAREERS will benefit the private sector, even if it is contracting back to the government.” One former senior FBI executive has mixed feelings about his second career as chief security officer for a Fortune 1000, 15,000-employee professional services firm, where he earns four times as much as his last Senior Executive Service-level government job. “Without exception, there is no career as prestigious or as rewarding as that of an FBI Special Agent, and job security has historically also been a given within the FBI,” he says. “On the other hand, I am substantially better compensated in the private sector, enjoy a better worklife balance and experience less stress, all at the expense of no job security.” Pauline Baldenegro, formerly an Internal Revenue Service (IRS) revenue officer in the collections department who retired in 2006, is now a self-employed enrolled agent assisting clients with both IRS and state agency tax representations and tax preparations. “People are so fearful of the IRS and experience frustrations with the Service,” says Baldenegro. “I have the knowledge and experience to be calm, defend my client’s requests and give the Service what they want based on the client’s financial needs.”
veteran federal employees bring knowledge and experience valued at all levels of education. The Internet has made it easier than ever for some to teach at the college and professional levels. Joe Butler is a former Department of Defense Air Force higher education manager who now teaches online university classes at Kansasbased Park University. “The pay is less than I made as a GS-13, but the fun and flexibility are well worth it!” Butler says. “Many students keep in touch, and their success is a joy for me.” Bobby Cole, a former Marine and later an employee at the Naval Air Depot in Cherry Point, NC, is now a substitute high school teacher in the Craven County (NC) School System earning $80 per eight-hour day. He says that he finds it “gratifying to teach young people about the nation.”
Helping Others
Many find that their federal government skills are transferrable to positions in state and local government. After retiring as a deputy director of the U.S. Department of Agriculture’s Natural Resources Conservation Service in 1999, Carl Bouchard, a licensed professional engineer, was hired as director of storm water management for Fairfax County, VA, where he says he received a salary rivaling his federal compensation. Bouchard subsequently started a private engineering firm serving municipalities.
Many change course in their second careers to focus on professions that will directly help people, often at far less compensation. Renate Fearonce, a U.S. Postal Service clerk who retired in 2009 after a 30-year career, spent $20,000 for a two-year graduate program in social work, obtained a state license and now works for a mobile crisis unit assisting individuals with behavioral health issues. She earns roughly twothirds the pay of her former federal job. Karen Binney left an intelligence analyst position at the National Ground Intelligence Center in 2003 and became a massage therapist in Charlottesville, VA, providing massages to seniors and individuals who had cancer surgery and who have, or are at risk for, lymphedema.
Teaching
Having accumulated knowledge for decades, 30
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Law enforcement
Federal law enforcement officers are able to offer a discrete set of skills in heavy demand and also are able to retire at a relatively younger age. After retiring from a federal criminal investigator and firearms instructor job at the U.S. Department of Labor in 2003 after 27 years of service, Michael Canaris, now 61, works as a firearms instructor at a Philadelphia police academy and for a major law firm as a full-time investigator.
State and Local Government
Artistic Passions
Many have used retirement to reactivate or expand upon artistic impulses, though the financial remuneration they receive for such endeavors varies widely. Mark Flynn began sand sculpting in the last few years of his GS-11 U.S. Air Force job and, after retiring in 2003, expanded the hobby into
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sECOND CAREERS a 20-25 hour-per-week sideline business that grosses $20,000 per year. “Now I meet all sorts of enthusiastic happy people on the beach, with an absolute minimum of paperwork,” Flynn says. “Working with the New Orleans Saints cheerleaders on the beach for a calendar shoot was pleasant.” Sandra Barott, who retired in 2002 from a VA Medical Center as a registered nurse, plays harp music for clients at funerals, weddings and other special functions and volunteers at medical facilities to bring music to the sick and dying, which she says “has a very positive effect on their medical as well as mental status.”
Family or Friends’ Businesses
Many federal employees have entered second careers by responding to the business solicitations of friends or family members. “I inherited my husband’s trucking agency business upon his passing and sold it after a few years and now work for it,” says former U.S. Postal Service rural
Some became masters of their own destiny by starting a business. mail carrier Carole Hayes, who retired from her federal job in 2006 and now earns about onethird of her former federal earnings working for the new owner. “I liked being a business owner.”
Entrepreneurs
Some have decided to be masters of their own destiny by starting their own businesses. You may have to track down David Goldstein off shore, as he operates a charter boat business serving clients aboard his 12-passenger boat plying the waterways of Prince William Sound in Alaska. Goldstein retired in 2003 from the National Oceanic and Atmospheric Administration as a warning coordination meteorologist and converted the charter boat business he’d begun in 2000 as a part-time service into a fulltime one, Prince William Sound Eco-Charters, LLC. 32
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Sales
Sales-related professions offer instant entry to individuals with good people skills. After taking an early out at age 48 in 1998 from the Social Security Administration as an operations supervisor, Mary Soubirous for the past 15 years has been a cemetery and funeral arrangement planner for Skylawn Memorial Park and Funeral Home in San Mateo, CA. “I love what I do,” Soubirous says. “I help people at a difficult time in their life.” And it pays well. On commission, she now earns twice as much as she would were she still employed at the GS-12 level, she says.
Administration
One secretary who retired in 2007 from Naval Sea Systems Command, Washington Navy Yard, Washington, DC, has found the private sector more lucrative, with her salary at retirement of nearly $58,000 rising to $65,000 at her first employer and $84,000 at her current employer, BAE, where she works as a support contractor for a federal government office. “Many companies value your expertise, corporate knowledge, security clearance and other abilities,” she says.
Odds and Ends
Jim Muth retired as a Department of Defense procurement supervisor in 2002 and for the past 10 years has worked part-time managing delivery logistics for Half Moon Bay Brewery, helping to deliver craft ales throughout the San Francisco Bay area. “It’s much less money but immensely more satisfying,” says Muth. “There’s free beer and attendance at craft beer events throughout Northern California! I enjoy meeting new people! I love my job – I never said that during my 34-plus year career.” If you’re in Washington, DC, taking a tour of the memorials, you might run into Alan Weinstein, who retired in 2001 from the U.S. Navy Office of Naval Research to become a part-time licensed Washington tour guide. Weinstein works some 20 jobs per year at a pay rate of $40 per hour or $400 per day ... plus tips. To see the complete list of second careers mentioned by respondents to the narfe magazine survey, go to www.narfe.org, log in and click on “Access NARFE Publications.” —By David Tobenkin
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THE 60-DAY ROLLOVER GAME CHANGER
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recent U.S. Tax Court case threw the Internal Revenue Service (IRS) a curveball and completely changed the rules of the game for
tax-free individual retirement account (IRA) rollovers. If you are considering a 60-day rollover, you’ll want to read this closely to ensure you don’t run afoul of the new rules. Not to be confused with a trustee-to-trustee transfer, in which IRA funds are transferred directly from one IRA custodian to another, a rollover involves the IRA owner taking possession of the funds and redepositing them into an IRA. Tax code permits IRA owners who take a distribution from an IRA to roll over the distribution into an IRA within 60 days and effectively treat the distribution as if it never happened; in other words, without any tax consequence. However, to limit abuse, only one rollover per 365-day period is permitted. For example, let’s assume John takes $50,000 from his IRA on May 1, 2014, and deposits the funds into his checking account. John has 60 days from the date of distribution to put this money back into his IRA to avoid a taxable distribution and the 10 percent early distribution penalty if he were under age 59½. John does not need to roll over the entire $50,000, but any amount not rolled over will be considered a taxable 34
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distribution and subject to the early distribution penalty if applicable. If John takes another distribution before May 1, 2015, the entire distribution would be taxable since the distribution fell within the 365-day period. If taxes were withheld, the entire gross distribution, not the net received after taxes, must be rolled over to avoid a taxable distribution. For example, let’s now assume John had 20 percent in taxes withheld from his distribution and only received $40,000 as a result. In this case, John would need to come up with another $10,000 and roll over the full $50,000 gross distribution to avoid a taxable distribution. It has been the IRS’ longstanding position that the onceper-year rollover rule applied to each IRA separately. In support of its position, the IRS had issued two private letter rulings, proposed new regulation and for years has published information in Publication 590 that
By Mark A. Keen,
CFP®
the rule applies to each IRA separately. In fact, here is the multi-IRA example the IRS has published in Publication 590 for years: “Example. You have two traditional IRAs, IRA-1 and IRA-2. You make a tax-free rollover of a distribution from IRA-1 into new traditional IRA (IRA-3). You cannot, within one year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. “However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. This is because you have not, within the last year, rolled over – tax-free – any distribution from IRA-2 or made a tax-free rollover into IRA-2.” The IRS’ long-standing interpretation of the 60-day rollover rule created a complicated mess when multiple IRAs were involved. And, as you can imagine, it provided the means for taxpayers to game the system by chaining together several IRA rollovers in an effort to use IRA funds on a tax-free basis for far longer than 60 days. In fact, this was exactly the reason Mr. and Mrs. Alan Bobrow ended up in Tax Court in the case of Bobrow v. Com-
FINANCIAL TOOLS NARFE offers an online retirement calculator and other financial planning tools. Find out more at www.narfe.org/ federalbenefits.
missioner. In its decision in that case, the court interpreted IRC 408(d)(3)(B) to apply to all of an individual’s IRAs in aggregate, not to each of his or her IRAs as the IRS has long interpreted the rule. In the words of the court: “Had Congress intended to allow individuals to take nontaxable distributions from multiple IRAs per year, we believe section 408(d)(3)(B) would have been worded differently. … Regardless of how many IRAs he or she
maintains, a taxpayer may make only one nontaxable rollover contribution within each one-year period.” In response to the Tax Court’s decision, the IRS, in Announcement 2014-15, conceded the court’s ruling, stating it will follow the court’s interpretation of section 408(d)(3)(B), withdraw the proposed regulation and revise Publication 590 to the extent needed to follow that interpretation. Furthermore, the IRS stated it would not begin enforcing the new rules until January 2015, a fortunate thing for anyone who has ever done – or who may be in the process of – multiple rollovers in a single year. Mark A. Keen, CFP®, is partner, Keen & Pocock, 10300 Eaton place, Fairfax, VA, and an investment adviser representative and registered principal of The Strategic Financial Alliance, Inc. (SFA). Securities and advisory services are offered through SFA. Email: mkeen@keenpocock.com.
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The Informed Citizen
Congressional District Leaders
T
here’s an acronym you may have heard lately: CDL. A Congressional District Liaison (or Leader) – CDL – is the NARFE member responsible for coordinating advocacy efforts in the congressional district where they live and vote. CDLs are likely to be elected by others in their congressional district and serve as the first among equals to regularly and clearly oversee the communication of NARFE’s message to their representatives. Crucial to this effort is face-to-face meetings with legislators and their staff. Several federations, including Virginia and California, have instituted Congressional District Liaisons, and seven states with just one district have not needed to wrestle with congressional boundaries. In NARFE’s future, there may be CDLs in every one of the 435 congressional districts in the country. This won’t be easy or quick. The current challenging policy environment requires that we up our game. The goal is each member of the House of Representatives knowing NARFE issues and identifying them with a single NARFE constituent leader – the Congressional District Liaison/Leader. Members of Congress and their offices have consistently told us that having a local contact who can speak for the NARFE members in their district is an effective way to keep them informed. History has shown where this exists, NARFE does well with lawmakers.
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Resources and Tools Maps, tables and printouts are available to equip CDLs to organize and advocate. Web-based, interactive maps showing congressional districts in distinct colors (December 2013 column), tables showing NARFE member counts by congressional district (April 2013 column), and voting scorecards (April 2014 column) are three of the key tools for current and prospective CD Liaisons. NARFE’s Legislative Action Center should be your first stop when beginning this process. The revised, updated and modular Protect America’s Heartbeat Toolkit (www.narfe. org/heartbeat/resources.cfm) is a 100-page gold mine for all advocates. Complementing Advocacy With Political Action While informed persuasion, especially through face-to-face meetings, and regular participation in primary and general
By Christopher Farrell, Legislative Representative
election voting are NARFE’s primary levers of power, NARFEPAC serves as a potent complement. Here again, CDLs would perform a critical function, participating prominently in the NARFE-PAC process and representing NARFE at NARFE-PAC supported fundraising events. eTraffic Summary by Rep A customized report can be prepared that shows for any representative or senator the name and number of each Legislative Action Center message sent since the 113th Congress convened on January 3, 2013. This summary tells us how many total activists have generated each of the requested messages. To obtain an eTraffic Report or past columns referenced here, email cfarrell@narfe.org or write NARFE CDL Resources, 606 N. Washington St., Alexandria, VA 22314-1914. NARFE’s Raison D’Être NARFE is a special interest group founded to defend and enhance the earned benefits of federal civil servants. Our success is based on a combination of a dedicated professional lobbying staff and member activism. We are at a critical point in our history, and where we go will be determined by the membership at the 2014 and 2016 Conventions. Where and what do you want NARFE to be in future?
EW N
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Alzheimer’s Update
Alzheimer’s news expressly for narfe
W
here do you go to find information on a health topic? If you are like me, the Internet is probably one of the places to which you turn. According to a
2012 survey by the Pew Research Center, 72 percent of Internet users said they looked online for health information within the past year. As we know, however, not everything on the Web is trustworthy. One place that I visit frequently for reliable information is the Alzheimer’s Association website, www.alz.org. In addition to helpful information you can access at your convenience, the Alzheimer’s Association also offers e-newsletters upon request. One of them is for NARFE members. It includes articles on Alzheimer’s, links to some helpful pages on the Alzheimer’s Association website and an update on how close NARFE is to our $11 million fundraising goal for Alzheimer’s research. Please review an issue at www.alz.org/dm/fy14/narfe/ jan.html and sign up to receive it every month by clicking “sign up for NARFE e-news.” The Alzheimer’s Association also offers a weekly e-newsletter to the general public. Here are examples of the kind of updates that you can find there: • “Blood test may help diagnose Alzheimer’s disease before start of symptoms. Researchers say a blood test may make it possible to predict who
38
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might get Alzheimer’s disease years before the start of symptoms. The study identified levels of 10 fats seen in the blood of people who went on to develop Alzheimer’s two to three years later, and the test was accurate about 90 percent of the time. The results, while intriguing, are preliminary, and the test needs to be more widely studied before it can be used outside of clinical trials.” • “Deaths from Alzheimer’s may rank with cancer, heart disease. Deaths attributable to Alzheimer’s disease may top half a million a year, a figure that would put Alzheimer’s just below heart disease and cancer, new research shows. An estimated 83,000 people in the United States died with Alzheimer’s in 2010, according to death certificates, making it the nation’s sixth-leading cause of death. The new study, where deaths were counted in a sample population and then multiplied by Census figures, suggests that the true total may be as much as six times higher.” • “Alzheimer’s Association
By Jane rodgers NARFE-alzheimer’s Chair
awards largest-ever research grant. The Alzheimer’s Association has awarded its largest-ever research grant – $8 million over four years – to support the Longitudinal Evaluation of Amyloid Risk and Neurodegeneration (LEARN) study. This research is a companion study to the Anti-Amyloid Treatment in Asymptomatic Alzheimer’s Disease (A4) Study, a pioneering Alzheimer’s prevention trial that is starting this year.” To sign up for these updates, go to www.alz.org and click on “weekly enews.” NARFE National Convention News. The NARFEAlzheimer’s National Committee voted to have a 60/40 raffle at the NARFE National Convention. Of the total collected, we will give 60 percent to the NARFE-Alzheimer’s Research Fund. Of the remaining funds, 50 percent will go to the firstplace winner, 30 percent to the second and 20 percent to the third. You do not have to be present to win. Many members provide a donation and address labels to their chapter’s convention delegate to affix to the raffle tickets on their behalf. Tickets will be $1 each, $5 for six tickets and $10 for 15 tickets. Good luck! Jane Rodgers is chair of the NARFE-Alzheimer’s National Committee. email: ajrodgers@tds.net. Her column appears quarterly.
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2013
For the Record
Thrift Savings Plan Monthly Returns
OCTOBER
0.19%
0.89%
4.60%
2.94%
3.38%
NOVEMBER
0.18%
(0.35%)
3.05%
2.49%
0.75%
The global markets struggled during April with continuing concerns over the crisis in Ukraine and slowing growth in China. Valuation and earnings concerns focusing on the more growth-oriented sectors in small- and mid-cap stock indices led to investor profittaking. Domestic and non-U.S. large-cap stocks were able to overcome investor risk aversion and generate positive returns. The fixed income markets continued to serve as a safe haven even amid the risk aversion and as the Federal Reserve continues to wind down its asset purchase program.
DECEMBER
0.19%
(0.56%)
2.54%
2.94%
1.51%
—BY Benjamin Gong, Financial analyst, Thrift Savings Plan
G FUND
F FUND
C FUND
S FUND
I FUND
MAY
0.12%
(1.78%)
2.34%
2.71%
(3.12%)
June
0.14%
(1.53%)
(1.34%)
(0.99%)
(2.77%)
JULY
0.18%
0.13%
5.10%
6.88%
5.29%
AUGUST
0.18%
(0.48%)
(2.89%)
(2.76%)
(1.31%)
SEPTEMBER
0.19%
0.99%
3.14%
5.89%
7.41%
JANUARY
0.21%
1.58%
(3.45%)
(1.91%)
(4.03%)
FEBRUARY
0.18%
0.62%
4.58%
5.43%
5.58%
March
0.19%
(0.15%)
0.85%
(0.69%)
(0.57%)
APRIL
0.20%
0.90%
0.75%
(2.47%)
1.51%
YTD
0.78%
2.98%
2.59%
0.17%
2.28%
LAST 12 MO
2.17%
0.21%
20.53%
21.75%
13.68%
10 yr
3.61%
5.25%
7.12%
10.79%
8.39%
L 2020
L 2030
2013
L INCOME
‘14
global issues roil markets in april
L 2040
L 2050
MAY
0.19%
0.33%
0.43%
0.51%
0.53%
JUNE
(0.30%)
(0.94%)
(1.20%)
(1.40%)
(1.59%)
JULY
1.21%
2.95%
3.72%
4.29%
4.83%
(0.39%)
(1.22%)
(1.60%)
(1.87%)
(2.11%)
SEPTEMBER
1.12%
2.71%
3.40%
3.90%
4.42%
OCTOBER
1.01%
2.23%
2.75%
3.11%
3.47%
NOVEMBER
0.58%
1.24%
1.54%
1.74%
1.93%
DECEMBER
0.58%
1.25%
1.56%
1.77%
1.98%
JANUARY
(0.42%)
(1.57%)
(2.04%)
(2.35%)
(2.71%)
FEBRUARY
1.15%
2.73%
3.44%
3.94%
4.44%
MARCH
0.19%
0.17%
0.14%
0.12%
0.09%
APRIL
0.31%
0.39%
0.37%
0.32%
0.32%
YTD
1.23%
1.69%
1.85%
1.94%
2.03%
LAST 12 MO
5.34%
10.62%
13.00%
14.70%
16.33%
AUGUST
THIS CHART is provided as a service to NARFE members who enrolled in the Thrift Savings Plan while employed by the federal government. Retirees are not eligible for enrollment. These returns are net of the effect of accrued administrative expenses and investment expenses/costs. Percentages in () are negative. Source: TSP
Countdown to COLA
T
he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.73 percent in March. To calculate the 2015 cost-of-living adjustment (COLA), the indices of July, August and September 2014 will be averaged and compared with the 2013 third-quarter average of 230.327. The percentage increase, if any, determines the COLA. March’s index, 232.560 is up 0.97 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. March’s index is 1.48 percent higher than the December 2013 base index of 229.174. The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes. Month
October 2013
229.735
November December
40
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Monthly % Change
% Change from 230.327
-0.3
-0.26
229.133
-0.26
-0.52
229.174
+0.02
-0.50
January 2014
230.040
+0.38
-0.12
February
230.871
+0.36
+0.24
March
232.560
+0.73
+0.97
April G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)
CPI-W
May June July August September
Donate to NARFE Programs Support Alzheimer’s Research Write your chapter number on check; make it payable to: NARFE-Alzheimer’s Research and mail to: Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633
NARFE members contributed for Alzheimer’s research: $11 Million Fund
$10,790,909*
*Total as of March 31, 2014 100% of all contributed funds go to Alzheimer’s research.
Your charitable contribution is tax-deductible to the fullest extent allowed by law.
Enclosed is my NARFE-Alzheimer’s contribution: $ Every cent that is contributed is used for research. Please circle: Mr. Mrs. Miss Ms. Name: Address: City: State: ZIP: Chapter Number: Credit Card Information: MasterCard VISA If you have any questions, write to: Discover AMEX National Committee Chair Card Number: Jane Rodgers, P.O. Box 234 Expiration Date: (mm)/ (yy) Wadesville, IN 47638-0234 3-Digit Security Code: Name: (please print) Email: ajrodgers@tds.net Signature
Join the Silver CIrcle Clip this contribution form and mail to: NARFE Silver Circle, 606 N. Washington St. Alexandria, VA 22314
•For a contribution of $25 or more, you will receive a Silver Circle pin, and your name will be listed in narfe magazine with other contributors. •For a contribution of $1,000 or more, your name will be placed on the “Wall of Fame” at NARFE Headquarters.
YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.
/
Enclosed is my Silver Circle contribution: $ ID # (ID # may be found on your narfe magazine label or your NARFE membership card)
Name: Address: City: Silver Circle contributions are NOT deductible for federal income tax purposes.
Installment Plan Wall of Fame 12-month installment plan
Give to the Scholarship and Disaster Funds
Please mail coupon and check to: FEEA 3333 S. Wadsworth Blvd., Suite 300 Lakewood, CO 80227
/
All donations go to the NARFE General Fund to support NARFE programs and operations.
State:
ZIP:
My check is enclosed
(Please make check payable to NARFE Silver Circle.)
Please charge my credit card Card type MasterCard VISA Discover AMEX Card Number: Expiration Date: (mm)/ (yy) Name: (please print)
Signature
Make check payable to: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund.
Date
YES!
Date
/
/
I would like to help with my contribution.
Please check appropriate box(es). To make credit card contributions, call 800-338-0755. Scholarships are available to children, grandchildren and great-grandchildren of federal civilian retirees and current federal employees who are NARFE members. NARFE-FEEA Disaster Fund
Amount: $
NARFE-FEEA Scholarship Fund
Amount: $
Name: Address: City:
State:
ZIP:
NARFE News
Board proposals
GREETINGS! From NARFE
P
hotos from this year’s NARFE Photo Contest will be featured in the Association’s spring note card solicitation. For many years, use of the winning photos from the photography competition was limited to NARFE’s annual calendar. In 2012, the Association began using member photos for the greeting cards. And last year, the Association was able to use even more member photos when it expanded the calendar from 12 months to 16 months. Photographers whose work appears on the 2014 cards are: • Get Well: “Hello, Spring” by Phyllis Maguire, Burke, VA, Chapter 893; • Thinking of You: “Wildflowers, California Coast,” Ralph Northrop,
Silver circle Donors Update As of April 15, NARFE’s Silver Circle donation program stands at $132,305. The program gives members a vehicle to donate to the Association beyond the norm. Donors of $25 or more are listed in narfe magazine and receive a Silver Circle pin. Donors of $1,000 or more have their names engraved on the Wall of Fame at NARFE Headquarters. Donors from December 16,
42
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In this issue, narfe magazine begins a series on the general resolution and bylaw amendments that the National Executive Board will propose, based on recommendations made by the Future of NARFE Committee. The proposals will be considered at the NARFE National Convention, August 24-28 in Orlando, FL. See p. 43. A book containing the NEB proposals, as well as resolutions and bylaw amendments advanced by NARFE chapters and federations, will be mailed to all NARFE chapters and registered convention delegates in June.
Rockville, MD, Chapter 1127; • Birthday: “Explorer’s Gentian, Deerlodge National Forest, MT,” Marsha A. Goetting, Bozeman, MT, Chapter 843; • Birthday: “Maine Fishing Camp,” Norman Collin, Port Charlotte, FL, Chapter 2194; • Blank Inside: “Side Street Surprise,” Sharon McFadden, Gettysburg, PA, Chapter 1797. Photographers whose winning photos will appear in the 2015 NARFE Photo Contest Calendar will be announced later in the year. NARFE Photo Contest. The photo contest is open to all NARFE members (except professional photographers). Photos must be horizonal in format and submitted as prints measuring 8 inches by 10
inches or 8 1/2 inches by 11 inches. Each member may submit up to five photos. The contest for the 2016 calendar will open August 1, 2014, and run until March 15, 2015. For more information, go to www. narfe.org, log in and click on “Special Programs” on the left of the page. Then get out your camera and send us your best shots!
2013-April 15 are listed here with their chapter numbers: California: Lawrence Lancaster, 0511; Robert N. Martin, 1718. Colorado: Dennis Jones, 0821. District of Columbia: Barbara Macken, 1795. eNARFE: George W. Biolsi, 2363; Cathy Buchler, 2363; Stella B. Harris, 2363. Florida: Oliver Brown, 0095; William Kerry Mcelhaney, 0845. Georgia: Jan D. Satterfield, 1033. Hawaii: Clifford K. Tamanaha, 1518. Illinois: Helen A. Mclaughlin, 0268. Kansas: Raymond Grieshaber, 1162; Jeanice A. Cress, 2077. Maine: Louis B. Godin, 1804. Maryland:
George D. Welch, 1519; Betteanne M. Priest, 1734; Edward E. Priest, 1734; Joseph A. Ryan, 1892. Massachusetts: R. K. (Shelley) Schwartz, 0034. Michigan: Herman A. Stiver, 0309. Nebraska: Joyce Y. Larson, 1239; Robert J. Beretta, 1509. Nevada: Judy L. Scherr, 1554. New York: Richard A. Nigro, 2340. North Carolina: Samuel E. Crain, 1420. North Dakota: Jay M. Schechter, 0195. Pennsylvania: Wayne Woodruff, 0114; Anita M. Collins, 1371. Texas: John Kevin Mcginnis, 0272. Virginia: Cynthia C. Fridgen, 0685; Martin B. Travis, 0737.
For chapter photos, see our Out and About Photo Gallery at www.narfe.org/narfemagazine.
National Executive Board Resolution, Bylaw Amendments
A
t the 2014 National Convention, August 24-28 in Orlando, FL, the National Executive Board (NEB) will offer a general resolution and two bylaw amendments. The general resolution seeks delegates’ agreement “that the NEB continue developing the model for Future NARFE using the Future of NARFE Committee report as the foundation, and provide implementing resolutions and bylaw amendments for consideration at the 2016 National Convention. This will be done through strategic planning, with stakeholder participation, to decide the best organization for the future of the Association.”
The resolution has been the source of some misunderstanding. To be clear, the resolution does not seek approval for implementation of the Future of NARFE (FON) Committee report and recommendations. The resolution seeks agreement only for strategic planning, the results of which may, or may not, include the ideas contained in the FON Committee report. (To read the report, go to www.narfe.org, log in, click on the Future of NARFE Committee banner.) At the 2014 Convention, the NEB also will offer amendments to the National Bylaws that would: • Reduce the number of National Officers from four to two, retaining only a National President and
National Treasurer and abolishing the National Vice President and National Secretary positions; and • Make membership in chapters optional rather than mandatory as it has been since 1988. On the advice of the Association’s attorney, the NEB has withdrawn plans to offer two other amendments stemming from FON Committee recommendations. One proposed to open nonvoting membership in the Association to individuals who are not eligible for a federal annuity; the other proposed creation of a discounted membership for individuals under age 26. The Board said the proposals require additional analysis. This series continues in the July issue.
Frequently Asked Questions and Answers
Q A
What is the proposed timeline for changes being recommended by the National Executive Board (NEB)?
While the NEB has endorsed the future of NARFE concept as outlined in the Future of NARFE Committee recommendations, there are basically four timeline stages. 1. The NEB already has reduced the number of NARFE regions from 10 to five, which it has the authority to do itself. It also agreed upon the immediate commencement of a comprehensive branding study and ongoing strategic planning, and the development of an enhanced NARFE mission statement to include championing good government and public service. Headquarters will develop these studies for presentation to the NEB. 2. The resolution and two bylaw amendments outlined above will
be brought to the 2014 National Convention. 3. Should the amendment to reduce the number of National Officers from four to two pass, the NEB has authorized the recovered funds to be used to hire additional, professional marketing and legislative staff and to conduct a search for a professional Executive Director to manage NARFE Headquarters. In the interim, the duties of the two former National Officers will be absorbed by the National President, the National Treasurer and the Headquarters staff. Both the National President and the National Treasurer will remain resident until a successful Executive Director search is complete and adequate transition has transpired. 4. All other recommendations will be considered as part of the strategic planning process, with any changes that require bylaw modifications
being brought to, and voted upon, at the 2016 National Convention and beyond. Any final recommended changes will be in full accordance with the pertinent laws by which NARFE must abide.
Q A
Given the scope of changes recommended over time, how is transition envisioned?
Again, strategic planning will play a major role in determining an implementation plan for any additional recommendations. Time will be allowed for scrutiny, budget modeling, fine-tuning as needed and input from NARFE leaders. Prudent and seamless transition is the goal. It is only after this process that a plan can be developed, presented to the NEB for approval and, where necessary, bylaw changes presented to the NARFE membership for vote. w w w. n a r f e . o r g
|
43
NARFE National Convention August 24-28
rlando Deadlines
Delegate Forms: June 28 Registration: August 1 (onsite registration ends August 25) Proxy Forms: August 9 Find more information at www.narfe.org/convention2014.
Alzheimer’s Advisory Group Member Will Be Speaker
A
member of the Alzheimer’s Association 2013 National Early-Stage Advisory Group will be among the speakers on the opening day of the NARFE National Convention, Sunday, August 24. Sandra (Sandy) Oltz of Sartell, MN, was diagnosed with younger-onset Sandy Oltz Alzheimer’s disease in September 2010 at the age of 46. Traditionally, Alzheimer’s Association speakers address convention delegates following opening ceremonies. Since 1986, NARFE members have contributed almost $11 million for Alzheimer’s research. Oltz graduated from St. Cloud (MN) State University in 1987 with a Bachelor of Science degree in biology and chemistry. Prior to her diagnosis, she held positions as a post-anesthesia care unit nurse and operating room admitting nurse at St. Cloud Hospital. She will share her journey of first realizing there was a change in her memory and some of the early warning signs she noticed at work and at home. She will talk about the tests she 44
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underwent over a six-month period that led to her diagnosis. As a member of the Early-Stage Advisory Group, she has been active in educating the public about the stigma attached to Alzheimer’s
and the unique challenges of living with younger-onset. Married with three children, she has shared her story during educational webinars, in local media and on “Katie,” Katie Couric’s daytime talk show.
Travel Arrangements Hotel Registration Rosen Centre Hotel 9840 International Dr. Orlando, FL 32819 800-204-7234 www.RosenCentre.com NARFE Rate: $95 + 13.63% tax = $107.94 single/double occupancy per night. Additional person: $20. For NARFE group rate, please use Group Code 50485. Reservation Cutoff Date: Monday, July 21
Airline Discounts Delta Airlines, www.delta.com. When booking online, select Meeting Events Code and enter the meeting ID: NMGND in the box provided on the Search Flight page. A direct ticket charge of $25 will apply if booking by phone (800-328-1111). United Airlines, www.united.com. When booking online, enter the Z Code: ZSAV, then the Agreement Code: 444067. A $25 service fee will be collected per ticket for all tickets issued by phone through United Meetings reservations, 800-426-1122.
special needs www.NARFEfl.US. Click on “Orlando Area Information” for companies supplying scooters, oxygen and other medical equipment.
NARFE 2014 National Convention Orlando, Florida August 24-28
PREREGISTRATION FORM NARFE ID #:_ _________________________________ Name:______________________________________ Address:_____________________________________ ___________________________________________ Name for badge:_______________________________ Chapter #:___________________________________ Location:_ ___________________________________
Please check: o (Guest) Member o (Guest) Nonmember
o Delegate* o Delegate-at-Large* o Alternate*
*NOTE: This is NOT a voter registration form. Voter registration is confirmed by your chapter on Form C/14-2. n n n n
A nonrefundable fee of $75 (payable to NARFE) must accompany this form. Onsite registration fee will be $90. Each attendee must complete a separate registration form. Form must be postmarked by August 1, 2014.
Notify in case of emergency: Name:______________________________________ Phone Number:_ ______________________________ Form C/14-4
o Charge to my credit card: o MasterCard o VISA o Discover o AMEX Card#:_ ____________________________________ Expiration Date:_________ /_ ______
Make check payable to NARFE and send to: NARFE, Treasurer’s Office 606 N. Washington St. Alexandria, VA 22314-1914
BANQUET REGISTRATION FORM
August 28, 2014 NARFE ID #:_ _________________________________ Name:______________________________________ Address:_____________________________________ ___________________________________________ Chapter #:___________________________________ Nonmember Guest:_____________________________
(mm)
(yy)
Name on card (print):___________________________ Signature:_ _________________________________
NARFE 2014 National Convention Orlando, Florida August 24-28
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candidate statements NARFE National elections Meet the NARFE Candidates NARFE will host seven live online candidate forums in late May and early June. Members will be able to log in to the forums using their computer or mobile device. “NARFE is very pleased to be able to give the candidates for NARFE national and regional offices a platform through which to address members,� says NARFE National President Joseph A. Beaudoin, who will moderate the forums. Each forum will be limited to 1,000 participants on a first-come, first-served basis. Members who go to the NARFE website can sign up to participate, get instructions on how to use the GoToWebinar software and submit questions for the candidates. Those who sign up will be sent a confirmation email. One day before the scheduled forum, NARFE will email an invitation to join the forum and a link to the forum site. Candidates will have an opportunity to make three-minute opening and closing statements. They will be allowed a maximum of two minutes to answer each submitted question. For additional details, go to www.narfe.org/convention2014. To sign up for a forum or forums, go to www.narfeorg/candidateforum. All members are eligible to sign up for the national candidate forums. Only members in the appropriate region will be able to sign up for the regional candidate forums. Recordings of the forums will be archived on the NARFE website, www.narfe.org. Candidate Forum Schedule National President: May 28, 12-1 p.m. EDT National Treasurer: May 28, 2-2:30 p.m. EDT Region I Vice President: June 11, 11 a.m.-12 p.m. EDT Region II Vice President: May 29, 1-2 p.m. EDT Region III Vice President: June 12, 1-1:30 p.m. EDT Region IV Vice President: June 3, 2-3 p.m. EDT Region V Vice President: June 12, 2:30-3 p.m. EDT
As they do every two years, delegates at the 33rd Biennial NARFE National Convention will elect National Officers and regional vice presidents for two-year terms. This year, however, delegates first will be asked to approve a resolution to streamline the Association’s national leadership by eliminating the positions of National Vice President and National Secretary. In addition, delegates will be voting to elect five, rather than 10, regional vice presidents, following the decision of the National Executive Board to reduce the number of regional vice presidents. NARFE members who announced their candidacy as of the deadline of this edition in April have submitted the following statements for publication in narfe magazine. As required by the magazine’s long-standing policy, the statements must be no more than 400 words in length and may not be edited by magazine staff. The statements also are available on the NARFE website, www.narfe. org (click on NARFE National Convention).
National President Richard G. Thissen
My name is Richard Thissen and I announce my candidacy for the position of NARFE National President. My commitment to NARFE is to ensure the continuance of the efficient, fiscally sound financial business model developed since April 2011 when I began my service as your National Treasurer. I will work to make whatever changes are needed to secure the future viability of our Association. My in-depth experience and knowledge of NARFE (chapter president, federation president, regional vice president, and national officer) has equipped me to lead our association through these times of change. I will work tirelessly to enhance NARFE’s visibility to ensure we continue our primary mission of legislative advocacy in order to fight against threats to our earned benefits, to continue our enhanced membership marketing programs that are stemming the tide of years of decline, as well as the excellent federal benefits services we provide to our members. Actions taken while serving as your National Treasurer have established NARFE on a stronger financial footing than in the past several years. During 2011, NARFE Headquarters slashed the previous year’s deficit by approximately 50 percent, while investing extra money into the Protect America’s Continued on p. 48
Ken Thomas
The release of thirty-five recommended changes by the Future of NARFE Committee and endorsement of these changes by the National Executive Board, signals the most dramatic organizational change in NARFE’s ninety-three year history. The Committee and Board agreed to: cut in half the number of regions represented from ten to five; offer bylaw amendments to reduce the number of national officers to two; make membership in chapters optional; open association membership to everyone; and provide youth membership at a reduced rate. Organizationally, NARFE is on a course of decline that cannot continue. NARFE faces challenges of: structurally remaining unchanged since 1947; unprecedented membership collapse (loss of 250,000 members since the late 80s, over 50,000 just in the last three years); insufficient revenue to maintain the association by over-reliance on dues revenue; and lack of focus on the core legislative mission. These factors have called into question the very existence of our organization. Solving NARFE’s issues will require a massive structural change, a rebranding to revitalize it, and a message that aggressively and effectively markets our organization. I am now a candidate for the NARFE National President’s position. I couldn’t spend another two years sitting on my hands waiting for something to happen or someone to do something. NARFE simply cannot afford another two years of weak promises and unattainable goals. Continued on p. 48
Note: The office of National President is the only position that is term limited. President Joseph A. Beaudoin is in the second of two terms and is ineligible for re-election. w w w. n a r f e . o r g
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Richard G. Thissen Continued from p. 47
Ken Thomas Continued from p. 47
Heartbeat (PAH) campaign (a million-dollar program not originally included in the 2011 budget) a very significant accomplishment. The independent audits in 2012 and 2013 indicated that we generated an unrestricted fund operating surplus each year – the first time this has happened in several years – as well as adding over $1.5 million dollars to our unrestricted fund net assets. Your fundraising contributions contributed to this effort and I thank you. Past outside studies, and now the Future of NARFE (FON) Committee have confirmed my belief that NARFE must change to survive for another 90 years and beyond. Our current antiquated governance structure is inflexible, costly and is in urgent need of change. While our current financial position is sound, our revenue streams may not be sustainable; therefore, I believe in the need for continuing in-depth strategic studies with all stakeholder input to determine the details of change and ask that you support this at the convention. Please also support the reduction of National resident officers from 4 to 2; this will allow NARFE to generate funds to enable us to hire marketing and executive professionals to ensure continuity in effective management practices. I ask you to support my record of proven leadership and commitment.
My government experience included three years working on Capitol Hill and thirty-five years in departmental management and executive level service. My NARFE experience included chapter president, district vice president, federation vice president and federation president. This election is a true turning point for NARFE and the next generation of our members. NARFE needs a strong leader, a practical leader who can provide strategic direction. I understand how to build the business of NARFE, create efficiencies, make tough deals and carefully consider divergent viewpoints. The time has come for real-world solutions to the array of problems NARFE faces. I am . . . Committed to listening to your comments and suggestions. Committed to setting strategic direction, identifying priorities and initiating projects focusing on membership recruiting and retention. Committed to association restructuring to address the priorities of NARFE’s legislative mission. Committed to using technology to enhance association growth. Committed to marketing and advertising NARFE. I respectfully ask for your vote and support by electing me your next NARFE National President. dcrsa1@hotmail.com www.kennethjthomas.com 352.666.5216
National treasurer Jon Dowie As a current Certified Public Accountant (CPA), Certified Information Technology Professional (CITP), and Chartered Global Management Accountant (CGMA), I would like to serve the NARFE membership as Treasurer. My goal is to support the new move to the “Future NARFE” that was recently endorsed by the Board. My credentials should enhance the ability of the organization to attract the effective Executive Director that NARFE is seeking. Over the last eight years, in particular, NARFE has done an excellent job in transforming itself into a more efficient organization. Cultural and technological differences dictate a necessary change. I pledge 48
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to support and enhance changes recommended for our organization to reverse the downward trend in membership and increase the organization’s ability to positively influence the recognition of our membership’s earned benefits. Benefits should not be abridged by the “shared” sacrifices of a nation, unequally distributed. We must act now! My background includes positions at Arthur Andersen & Company and The National CPA Group (Technical Director) both in New York City. Later in Washington, I was the Chief Financial Officer of Federal Information Technologies, Inc. (subsidiary of Cincinnati Bell) and Eurotech, Ltd. which was listed and traded on the American Stock Exchange. My three (3) US Navy recalls resulted in a twentyone (21) year career, of which almost thirteen (13)
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years were on active duty. I now am retired from Navy Special Operations. My academic career includes being an Assistant Professor on the faculty of Clemson University as well other institutions. My degrees include a Bachelor’s, Master’s, and I am All But Dissertation (ABD) on a Doctor of Business Administration Degree in Finance, Marketing, and Accounting Information Systems. For a previous employer, my efforts increased profitability by two-hundred percent (200%) in my first year and for another, I reduced costs for a major system by thirty percent (30%).
My wife, Donzleigh Dowie, served proudly as a civil servant for more than thirty-three (33) years. Her service included the US Navy HQ, the US Coast Guard HQ, and Immigration and Naturalization HQ (now ICE) and she was in the Pentagon on September 11, 2001 (her only day of Combat Pay). While still employed, she attended school part-time and earned a Bachelor’s Degree (Magna Cum Laude), and three certifications while raising a son. I feel I have the capabilities and knowledge to carry NARFE into the future.
Region I Evelyn Kirby
Serving as Region II VP is a privilege. Serving NARFE members in new Region I from Maine to Vermont, New Hampshire, Rhode Island, Massachusetts, Connecticut, New York, Ohio, Kentucky, Virginia, West Virginia, the District of Columbia, Maryland, Delaware, Pennsylvania and New Jersey will be an honor if I am chosen VP there. Yes, this is an area with many members and congressional districts. However, its needs and those across all of NARFE are identical. They can be met as together we rebuild membership, focus on legislative challenges to our earned benefits, continue as a respected force with Congress and others, provide swift assistance to members, equip officers to lead, and use best practices. My vision is simple: NARFE continues for decades as THE VOICE of the Federal community. We must appeal to long-time members and new generations. We must use updated, user-friendly communications, technology and business processes for all our members, and prospective members, while moving forward. We need new revenues to advocate effectively, to market who we are and how we strengthen and protect America, to upgrade systems and to grow as an Association. This will reinforce our clout and recognition, boost membership numbers and bolster legislative victories. I will continue to listen to all, give honest answers, provide timely guidance and offer strong policy leadership. My actions as Region II VP demonstrate transparent, solid performance, e.g., equalizing initial dues of new members, sharing information quickly with Federations and Chap-
ters, leading a region-wide training event for 200 attendees, being vocal about member services, mission priorities and advocacy, and serving on the National Audit and Future of NARFE Committees (and earlier on National Legislative Committees). I also served and succeeded in multiple Chapter and Federation positions. The world changed. NARFE must evolve too. With open minds connecticut, delaware, kentucky, maine, maryland, we must assess what is best for massachusetts, new today and tomorrow. I will work hampshire, new jersey, new for quality strategic planning and york, ohio, pennsylvania, careful, well-thought- out transi- rhode island, vermont, tion and implementation steps as virginia, West Virginia, we modernize for the long haul District of Columbia – building on our 93-year record. In my career I led large strategic and transition planning efforts, developed and implemented major policies, evaluated and improved complex national and regional human resource programs, managed a large, diverse staff and multi-million dollar budget, and helped unleash others’ strengths. I am qualified to lead change and people, results driven and can build coalitions. Thank you for all you do so well. Please vote for me.
William Shackelford
My decision to run for office is because NARFE needs to change its course of direction with emphasis on including regular members to participate in recruitment and legislative events. It is almost impossible to lead and serve if you are not wanting w w w. n a r f e . o r g
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to listen. NARFE members from Region I require someone who will listen and address their concerns. I will be assertive in bringing your concerns to the attention of Headquarters staff and the National Executive Board. We have many challenges ahead of us but on all levels of the organization we can exercise appropriate advancements to make NARFE viable and strong. As your Region I Vice President, I will place a major emphasis on recruitment, retention and leadership development. We need to explore any and all ways to secure NARFE as the voice of active federal employees, annuitants, their families and surviving spouses/partners. RECRUIT – Recruiting new members is every NARFE leader’s responsibility. Over the years successful legislative victories plus threats by Congress on our earned benefits have encouraged people to join NARFE. Efforts by NARFE HQ bring in new members and innovative recruiting methods in local Chapters have shown positive results. One of my high priorities will be to work closely with those who make these successes possible and motivate other leaders to recruit.
RETAIN – Retaining members should start the moment a new member joins NARFE. Make new members feel welcome by greeting them, introducing them to other members and letting them take ownership of NARFE’s mission. Encourage participation on a committee, chapter assignment or as a chapter officer. Interesting, topical meetings will keep members coming back. Listen to your members to find their needs, likes, dislikes and expectations. Take action on what you learn. DEVELOP – Developing members to become chapter leaders is a continuing process. Mentoring is a tool that can be used to nurture and grow members. It can be an informal practice or a formal process. Proteges observe, question and explore. Mentors demonstrate, explain and model. By using mentoring, chapters will develop knowledgeable leaders and the chapter will prosper. I am proud of NARFE and believe that our members have the potential to make a difference in the overall growth and success of NARFE. I respectfully ask for your vote and support by electing me your next NARFE Region I Vice President. Together, we can move NARFE forward.
Region II Marc Harris
When seeking someone to defend your retirement benefits, you need to look not just to the positions they have held, but to their demonstrated ability to fill the job requirements and be flexible and prepared for the future. I offer my years of successful experience in and out of NARFE, and my dedication to the vision of an expanded and inclusive FUTURE NARFE, as your representative on NARFE’s Board of Directors. NARFE is at a cross-roads. NARFE needs a Board of Directors that has the experience and vision to guide NARFE in an increasingly hostile political environment. I have a demonstrated history of confronting challenges and successfully implementing changes to overcome them. I have observed how NARFE works and today’s political environment and, based on my education (MBA in Management), experience and vision, have
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offered many recommendations that have been adopted. I have worked hard to stem the loss of members, recruit new members, and reinstate those who left, as a alabama, traditional Chapter President, florida, georgia, federation appointee, early mississippi, supporter of eNARFE, and north carolina, President of eNARFE Florida which is now the largest chap- south carolina, tennessee, Puerto ter in Florida. Rico/Virgin I have successfully used traditional and non-traditional Islands methods to recruit and retain members such as monthly meetings, newsletters, websites, posters designed specifically for chapter and Federation use, other forms of public relations and advertising, bonuses for joining NARFE, joining the Chamber of Commerce, district-wide events, eNARFE, teleconferences, Go-to-Meetings, etc.
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I am a listener, communicator and trainer, having been a Federation Public Relations Chair and Newsletter Editor, a contributor to 2 major newspapers, and recently a guest columnist for Mike Causey (Federal News Radio). I have written legislation, regulations, policies, procedures and training material. I write and distribute a weekly eBlast for eNARFE Florida Chapter 2364, and am a contributor to the eNARFE Chapter 2363 and 2364 blogs. I have extensive experience in the use of modern communications tools, having designed, implemented and managed websites for the federal government, NARFE, Rotary and my own businesses. During my time with the Future of NARFE Committee, I collaborated with NARFE members with diverse backgrounds and views to develop consensus and recommendations that, when implemented, will keep NARFE open and defending our benefits and providing valuable advice for the foreseeable future. With your vote, I will work every day to keep NARFE open and defending our hard earned benefits. Marc Harris, 407-584-7423
Jerry Janci
After serving four (4) years in the United States Air Force, which included tours at Naha Air Force Base, Okinawa and Maxwell Air Force Base, Alabama, I started my thirty-two and half years of service in the United States Postal Service (USPS). I represented carriers as an officer of the local Letter Carrier Branch for twenty-five (25) years including Shop Steward, Secretary, Vice President, and President (16 years). I JOINED NARFE seventeen (17) years prior to retirement for the same reason that all federal employees should join NARFE today – Legislative Activism to protect our benefits and The Accurate source of Information for all things relating to active and retired federal employees and their families. While President I instituted the presentation of a Gift Membership for NARFE to all new retired carriers. I also served as a State Officer for letter carriers
including several years as State Director of Education. NARFE was represented at all State Conventions and a NARFE member addressed the delegates. Following my Retirement, AND GOING ON DUES WITHHOLDING FOR MY NARFE DUES, I became Secretary of my local NARFE Chapter and soon was elected Chapter President. Before long I started my service to the Mississippi Federation NARFE and served as: 2nd Vice President, Membership Chairman, Service Officer; 1st Vice President, Legislative Chairman; and President (currently in my 2nd term). In addition to being a delegate at NARFE State and National Conventions and attending all training sessions that were available, I served on the National Convention Membership Committee and on the National Convention Bylaw Committee. I have actively supported NARFE for the past thirty (30) years of my NARFE membership and continue to do so. The first duty of a Regional Vice President is to be a conduit between the National Executive Board and the NARFE Region members – keeping each informed of their decisions and concerns. I will fulfill this duty enthusiastically. Any decision or action I may take will be guided by the wishes of Region members. Current members must be a priority when changes in NARFE are considered. Please contact me at lettermanj@aol.com with any comments or questions. I ask that you look Positively upon my candidacy for NARFE Region 2 Vice President.
Mary Pierson
My federal career started in 1961 at Keesler AFB and then in 1974 transferred to the U.S. Naval Oceanographic Office, Stennis Space Center, MS. Throughout my 36-year career as a federal employee, I wore many hats, from Personnel Specialist and Contracting Officer and Ammunitions Officer. As a Command Inspector, I traveled to every continent except Australia to inspect the twelve Naval Oceanographic Ships. I retired after 36 years of service to our country in December 1997. I attended college at the University of Southern w w w. n a r f e . o r g
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Mississippi and Mississippi State University and have earned 32 Certificates of completion from the Air Force and the Navy on courses I completed that enhanced my position with DoD. My career with NARFE started in 1998, serving my Chapter as President. Attending the 1999 Mississippi Federation Convention, I was appointed as the Federation Membership Chairman. In 2003, I was elected as 2nd Vice President of the Mississippi Federation, and in 2004 I was elected as the Federation President. As Federation President I had the pleasure of establishing the first NARFE all active federal employee chapter at Stennis Space Center. During this same time, I served NARFE National as the Region III PreRetirement Seminar Coordinator and assisted Director Ken Glass. When Ken retired I was asked to accept the office of Director of Pre-Retirement Seminars. I have attended all NARFE Conventions, both National and Federations since 2000 to increase
my overall knowledge of NARFE. My in-depth knowledge and understanding of NARFE’s goals and operation, my formal education along with my federal employee experiences qualifies me as a candidate for the office of NARFE Region II Vice President. I am committed to expanding our membership in NARFE. I will work to develop better communications with our elected officials, National and State, Congressman and Senators. I will interact with you on your ideas to improve NARFE overall. I will work with you to grow the membership in Region II. I will be available to you at all times via cell phone and computer. I grew up in San Francisco, CA, graduated from Galileo High School. I met my husband Donald and moved to Gulfport, MS. We have one daughter, two sons and four adult grandchildren.
Region III Carol R. Ek
At this time I am announcing my intention to seek election to the position of Region III Vice President at the 2014 National Convention in Orlando, Florida. I began my duties as Region V Vice President with the move of Richard Thissen to National Headquarters Treasurer in 2011. Since that move, I have learned through the association of the many members of NARFE, both who I have had the privilege to meet and those who stay behind the scenes but work so diligently to maintain the purpose and Mission of NARFE in their local communities. We will have many challenges ahead of us during the next years. “Federal employees cannot continue to be pawns in the political games in Congress.” At the same time, our association is seeing many proposed new challenges ahead in what needs to be accomplished to continue our commitments and growth devoted to serving and protecting the earned entitlements, rights and benefits of all active and retired federal employees and their 52
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survivors. As you are well aware we have several issues of the highest importance to take forward during this year’s convention. We must all work together to address illinois, indiana, iowa, kansas, the challenges and michigan, minnesota, missouri, proposed “Future of nebraska, north dakota, south NARFE” changes; I ask that you have the dakota, wisconsin trust that I will have the knowledge and experience to carry out the mission and polices of NARFE world-wide. With the experience I have gained since first elected I hope you will have the confidence to ask me to represent you through these hurdles to keep NARFE your organization. Your questions or concerns are mine. I hope I can count on your support to elect me to represent you during the coming years. Thank you.
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Region IV Rodney Adelman
Rodney L. Adelman is a candidate for Regional Vice President for the “new” Region IV (Arizona, Arkansas, Colorado, Louisiana, New Mexico, Oklahoma, Panama, Texas, and Utah). Elected Arizona Federation President in May, 2011, and re-elected in 2013, he previously served as Federation Vice President and District Vice President. Rodney has been a member of NARFE since 2001, both as a Federal employee and retiree. He has served his current Chapter (1789 - Sun City West, AZ) as Chapter President, Secretary, and Legislative Officer. Rodney has attended all National Conventions, Region VII Conferences, and Arizona Federation Conventions since retiring to Goodyear, AZ, in 2005. He has served on the National Bylaws
Committee (2010) and National Legislative Committee (2012), and has been appointed as Vice-Chair of the 2014 National Bylaws Committee. He also serves on the Future of NARFE arizona, (FON) Committee. arkansas, Rodney retired (CSRS) colorado, louisiana, from the Antitrust Divinew mexico, oklahoma, sion, Dept. of Justice, texas, utah, Republic of after nearly 36 years of Panama Federal service. Along the way, he held positions at the Postal Service, the US Senate, and the Departments of Labor, Interior, Defense, Energy, and State, at locations in DC, Baltimore, Philadelphia, Tulsa, El Paso, and overseas.
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Rodney’s Federal career initially focused on budget and financial management, then Congressional liaison, and finally administration and management. He graduated from the Univ. of Maryland (College Park), majoring in Finance, and continued Public Administration graduate studies at George Washington University in Washington, DC. One of Rodney’s unique qualifications to serve as the Region IV VP is his experience living and working for the Federal government in several locations, foreign and domestic, and for a variety of Departments and agencies. He understands the unique issues facing Federal employees and retirees in the DC area, in the “field,” and overseas. Rodney supports President Beaudoin’s recent statement, “The current NARFE organization is unsustainable; the long established NARFE mission is in grave danger.” He supports the FON Committee vision of a streamlined organization focused on advocacy and is committed to its implementation, while remaining open to “better ideas.” Rodney recently stated, “We must be prepared to honestly assess and consider new organizational structures, new methods of governance, expanded membership, and new funding sources.” Rodney looks forward to a vigorous debate on the future of NARFE. He also asks for your support and your vote for Region IV Vice President.
Charles Stanphill
My name is Charles Stanphill and I wish to announce my candidacy for the newly created Region IV Vice President position at the 33rd National NARFE Convention in Orlando.
After graduating from the University of Mississippi with a degree in accounting, I began my Federal career with the Internal Revenue Service in 1967. My IRS career took me to Mississippi, Georgia, Washington, DC and Oklahoma in increasingly responsible management positions. While moving around the country, I also served in National Guard and Army Reserve units, retiring as a Master Sergeant in 1999. I have been involved in the operations of NARFE since 2000. In this period of time I have served in leadership positions in chapters and the Oklahoma Federation. In 2010 I was the chairperson of the Resolutions Committee at the National Convention. From 2009 until 2013 I was the President of the Oklahoma Federation. Currently I am the Immediate Past President of the Oklahoma Federation and President of Chapter 2351. The leaders you elect at this convention will guide the course of NARFE for many years. These leaders must be prepared to face some hard issues and be creative in their guidance. While the recommendations of the Future of NARFE report may not be popular with everyone, what we are presently doing is not working. I am eager to work with you and the National Executive Board to find solutions to stop the decline of our membership. My accounting background and 35 year career with the Internal Revenue Service give me the background to be an effective member of the board to strengthen this organization. I am open to new ideas, new techniques, and new approaches to solving our problems. “But this is how we’ve always done it,” is not good enough for NARFE anymore! Please attend the convention in Orlando and together let’s build NARFE for the Future! Charles Stanphill, retiredmsg@cox.net
Region V Helen Zajac
My name is Helen Zajac and I previously announced my candidacy for the office of National Secretary and have placed ads in several Federation Program books soliciting your vote for National Secretary. However, with the release of the Future of NARFE Committee report, in which they recommend elimi54
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nation of National Secretary and the uncertainty of the delegates vote on that resolution at the National Convention; I have decided not to actively pursue National Secretary in support of the National Executive Board’s endorsement of this report. Consequently, I am now a candidate for the new Region V Vice President. With the reorganization of Regions from 10 to 5, my current Region VIII has been combined with the current Region IX
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plus one federation from Region VII resulting in a new Region V. I have been a dedicated and committed NARFE member for 22 years, serving in many capacities in the Region, Federation and Chapter, holding offices in every year of my membership. I am currently serving as Region VIII Vice President. Having served as a member of the National Executive Board for nearly six years, I have been aware of and involved with the many challenges that NARFE faces. With the many changes proposed by the Future of NARFE Committee, I am prepared to ensure implementation of any proposed changes approved by the NARFE membership. I recognize that a major effort and some drastic changes need to be forthcoming from our entire membership to change the course of our Association. It is my intent to work with the National Executive Board and each Federation in Region V to reverse the decline in membership, to publicize
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and make our Association a more recognizable entity in the public domain, to establish a more viable member legislative advocacy with Congress, and to work towards a more effective alaska, california, and efficient NARFE operation. hawaii, idaho, I believe communication with montana, nevada, the entire membership is of oregon, washington, the highest priority and only wyoming, GUAM, through active and complete Republic of the communication to the memberPhilippines ship will we be able to move our Association forward in a positive direction. I cannot over emphasize the need to work together as a cohesive team in order to strengthen and grow our Association. I would appreciate your support by electing me your Region V Vice President.
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National Active and Retired Federal Employees Association
Consolidated Financial Statements for the Year Ended December 31, 2013
REPORT OF THE NATIONAL TREASURER As required by the NARFE National Bylaws, I am very proud to present the results of the audit of the Association’s financial condition for the calendar year ended December, 31, 2013. The consolidated statement of activities shows an increase in unrestricted fund net assets from operations and board designated funds of $253,810 (compared to the increase of $155,114 in 2012 and losses in previous years). Unrestricted net assets overall, including investment income, operating activities and board designated funds, increased by $789,510 in 2013 (compared to $681,814 in 2012 and losses in 2010 & 2011). As 2013 was a nonelection year, assets in the temporarily restricted category decreased. Therefore, the 2013 combined (unrestricted and restricted funds) increase was $726,657, compared to $659,456 in 2012. The Consolidated Statement of Cash Flows shows that net cash provided by operations was $520,309 in 2013 (compared to $438,683 in 2012 and negative numbers in 2010 and 2011). The auditors credited cost-savings measures as having had a positive impact on our financial condition; they also said it is notable that we are investing our revenue in equipment and processes to improve future NARFE operations. I would be remiss if I did not mention the positive impact of members’ generous response to our fundraising activities (fundraising resulted in a record $1.7 million after expenses). NARFE’s leadership remains committed to identifying and implementing cost savings and improving the efficiency of NARFE with new and upgraded equipment and processes. I also commend the Treasurer’s staff for their dedication and professionalism; they contributed greatly to these accomplishments.
Richard G. Thissen, National Treasurer
REPORT OF THE NATIONAL EXECUTIVE BOARD AUDIT COMMITTEE The National Executive Board (NEB) Audit Committee met March 26 by teleconference with representatives of the audit firm Councilor, Buchanan & Mitchell to review the Association’s audit of NARFE finances for the calendar year ended December 31, 2013. The NEB Audit Committee members participating were Regional Vice Presidents William F. Martin (Chair) and Evelyn M. Kirby. (Committee member Jerome S. Smith was unable to participate.) Also participating were NARFE President Joseph A. Beaudoin; Vice President Paul H. Carew; Secretary Elaine C. Hughes; Treasurer Richard G. Thissen; and Tayo Coker Polson, director of Budget & Finance. The audit firm’s representatives, John Mullins and Peter Reilly, provided a comprehensive review of the audit. They reported finding no weaknesses. The audit showed that for the second consecutive year, NARFE generated an unrestricted fund surplus ($253,810) and an increase in unrestricted fund net assets ($789,510). The auditors indicated that they were pleased to see that NARFE’s financial situation had improved again this year. They specifically mentioned that they could see that NARFE was investing its revenue in equipment and processes to improve the efficiency of the Association in the future. The NEB Audit Committee accepts the report. Based upon the report, the Committee commends the members of the NARFE Treasurer’s Office for their excellent performance once again.
William F. Martin, Chair
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Independent Auditors’ Report The Executive Board National Active and Retired Federal Employees Association Alexandria, Virginia Report on the Financial Statements We have audited the accompanying consolidated financial statements of National Active and Retired Federal Employees Association, which comprise the consolidated statement of financial position as of December 31, 2013, and the related consolidated statements of activities and cash flows for the year then ended, and the related notes to the consolidated financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Association’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of National Active and Retired Federal Employees Association as of December 31, 2013, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. 58
Councilor Buchanan & Mitchell, P.C. Certified Public Accountants Bethesda, Maryland March 26, 2014
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National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Financial Position December 31, 2013 (With Comparative Totals for December 31, 2012 and National Active and Retired Federal Employees Association and2011) Affiliate
National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Financial Position Consolidated Statement of Financial Position December 2013 31, 2013 Unrestricted (With Comparative Totals for December 31, 2012 and 2011) December 31, 2013 (With Comparative Totals for December Board Total Temporarily31, 2012 2013 and 2011) 2012 Operating
Designated
Unrestricted 2013
Assets
Restricted
Total
2011 Total
Total
Unrestricted Current Assets Board Total Temporarily 2013 2012 2011 Cash and Cash Equivalents $ 625,138 Designated $ 220,755 Unrestricted $ 845,893 Restricted $ 309,400 $Total 1,155,293 $Total 1,739,659 $Total 1,269,089 Operating Short-Term Investments 201,256 Assets Accounts Receivable - Net 201,198 201,198 13,236 214,434 184,231 214,432 Current Assets Interorganization Receivables 284 284 - * - * - * Cash and Cash Equivalents $ 625,138 119,418 $ 1,739,659 121,445 $ 1,269,089 185,975 Prepaid Expenses and Deposits 113,290 $ 220,755 - $ 845,893 113,290 $ 309,400 6,128 $ 1,155,293 Investments 2,685,075 2,857,019 5,542,094 5,542,094 4,893,090 4,650,365 Short-Term Investments - 201,256 Accounts Receivable - Net 201,198 201,198 13,236 214,434 184,231 214,432 Total Current Assets 3,624,701 3,078,058 6,702,759 328,764 7,031,239 6,938,425 6,521,117 Interorganization Receivables 284 284 - * * - * * - * * 119,418 121,445 185,975 Prepaid Expenses and Deposits 113,290 113,290 6,128 Investments 2,685,075 2,857,019 5,542,094 5,542,094 4,893,090 4,650,365 Property and Equipment Land 700,000 700,000 700,000 700,000 700,000 Total Current Assets 3,624,701 328,764 - 7,031,239 * 6,938,425 * 6,521,117 * Buildings 4,179,268 3,078,058 - 6,702,759 4,179,268 4,179,268 4,150,120 3,976,188 Furniture, Equipment, and PropertySoftware and Equipment 2,301,393 1,534,877 1,632,114 2,301,393 2,301,393 700,000 700,000 700,000 Land 700,000 700,000 Less Accumulated Buildings Depreciation 4,179,268 4,179,268 4,179,268 4,150,120 3,976,188 Furniture, Equipment, and (3,250,101) (2,914,751) (2,809,787) and Amortization (3,250,101) (3,250,101) 2,301,393 1,534,877 1,632,114 Software 2,301,393 2,301,393 Less Accumulated Net Property and Equipment 3,930,560 3,930,560 3,930,560 3,470,246 3,498,515 Depreciation (3,250,101) (2,914,751) (2,809,787) and Amortization (3,250,101) (3,250,101) Total Assets $ 7,555,261 $ 3,078,058 $10,633,319 $ 328,764 $10,961,799 * $10,408,671 * $10,019,632 * Net Property and Equipment 3,930,560 3,930,560 3,930,560 3,470,246 3,498,515 Liabilities and Net Assets Total Assets $ 7,555,261 $ 3,078,058 $10,633,319 $ 328,764 $10,961,799 * $10,408,671 * Current Liabilities Accounts Payable and Liabilities andExpenses Net Assets $ 504,794 $ 522,080 Accrued $ 502,722 $ $ 502,722 $ 2,072 Interorganization Payables 284 284 - * Current Liabilities 125,993 118,977 Chapter Dues Payable 125,993 125,993 Accounts Payable and Deferred Revenue 2,729,387 55,000 2,784,387 2,784,387 2,924,761 $ 504,794 $ 522,080 Accrued Expenses $ 502,722 $ $ 502,722 $ 2,072 Total Current Liabilities 3,358,386 55,000 3,413,386 2,072 3,415,174 3,565,818 Interorganization Payables 284 284 - * * - * 125,993 118,977 Chapter Dues Payable 125,993 125,993 Deferred Revenue 55,000 - - 2,784,387 Noncurrent Deferred Revenue 2,729,387 499,661 468,718 2,784,387 968,379 968,379 2,924,761 991,264 Total Liabilities TotalCurrent Liabilities
3,358,386 3,858,047
55,000 523,718
3,413,386 4,381,765
Noncurrent Deferred Revenue Net Assets Unrestricted Total Liabilities Restricted Temporarily
499,661 3,697,214 3,858,047 -
468,718 2,554,340 523,718 -
968,379 6,251,554 4,381,765 -
2,072 326,692
Net Assets Total Net Assets Unrestricted Total Liabilities and Temporarily Restricted Net Assets Total Net Assets
3,697,214 3,697,214 $ 7,555,261 3,697,214
2,554,340 2,554,340 $ 3,078,058 2,554,340
6,251,554 6,251,554 $10,633,319 6,251,554
326,692 326,692 $ 328,764 326,692
Total Liabilities and Net Assets
$ 7,555,261
$ 3,078,058
$10,633,319
2,072 2,072 -
$
328,764
$10,019,632 * 588,499 - * 158,326 2,963,540 $ 588,499 * 3,710,365 - * * 158,326 2,963,540 1,117,134 *
$
3,415,174 * * 3,565,818 * * 3,710,365 * * 4,383,553 4,557,082 4,827,499 968,379 6,251,554 4,383,553 * 326,692
991,264 5,462,044 4,557,082 * 389,545
1,117,134 4,780,230 4,827,499 * 411,903
6,578,246 5,851,589 5,192,133 6,251,554 5,462,044 4,780,230 326,692 389,545 411,903 $10,961,799 * $10,408,671 * $10,019,632 * 6,578,246 5,851,589 5,192,133 $10,961,799 * $10,408,671 * $10,019,632 *
* Interorganization receivables and payable eliminated in consolidation. See accompanying Notes to Consolidated Financial Statements.
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* Interorganization receivables and payable eliminated in consolidation. See accompanying Notes to Consolidated Financial Statements.
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National Active and Retired Federal Employees Association and Affiliate National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Activities National Active and Retired Federal Employees Association For the Year Ended December 31, 2013 and Affiliate Consolidated Statement of Activities (With Totals forthe the Years Ended December 31, 2012 and 2011) For the Year Ended December 31, 2013 Consolidated Statement ofComparative Activities For Year Ended December 31, 2013 (With Comparative Totals for the Years Ended December 31, 2012 and 2011)
(With Comparative Totals for the Years Ended December 31, 2012 and 2011)
Revenues and Support Membership Dues Revenues and Support Contributions - Calendar and Cards Membership Dues Contributions- -Calendar PAC Contributions and Cards Contributions- -PAC Silver Circle and Other Contributions Contributions- -Silver Protect America’s Contributions Circle and Other Heartbeat - Protect America’s Contributions Advertising Heartbeat Royalties Advertising National Convention Revenue Royalties Other Convention Revenue National Net Assets Released from Restrictions Other Net Assets Released from Restrictions Total Revenues and Support Total Revenues and Support Expenses Program Services Expenses Communications Program Services Rebates to Federations Communications New Member Rebates to Rebates to Federations and Chapters NewFederations Member Rebates to Legislative Program Federations and Chapters RetirementProgram Benefits Program Legislative Public Relations Program Retirement Benefits Program Pre-Retirement Public Relations Seminars Program Program National Convention Pre-Retirement Seminars Program Protect America’s Heartbeat National Convention NARFE-PAC Protect America’s Heartbeat NARFE Alzheimer’s Fund NARFE-PAC Life Membership Fund NARFE Alzheimer’s Fund Life Membership Fund Total Program Services Total Program Services Supporting Services General Services Administration Supporting Membership Recruitment General Administration MembershipRecruitment Services Membership Fund-Raising Membership Services Fund-Raising Total Supporting Services Total Supporting Services Total Expenses Total Expenses Increase (Decrease) in Net Assets Assets from Operations Increase (Decrease) in Net Assets Assets from Operations Investment Income (Losses) Investment Income (Losses) Increase (Decrease) in Net Assets Net Assets, Beginning of Year Increase (Decrease) in Net Assets Net Assets, Beginning of Year Net Assets, End of Year Net Assets, End of Year
Operating Operating
Unrestricted Board Unrestricted Designated Board Designated
2013 2013 Total Unrestricted Total Unrestricted
$ 7,883,131 2,849,402 $ 7,883,131 2,849,402 28,944 28,944 28,107 895,704 28,107 177,163 895,704 177,163 91,432 359,206 91,432 359,206 12,313,089 12,313,089
$ 107,304 $ 107,304 -50 50 ----60,000 60,000 167,354 167,354
$ 7,990,435 2,849,402 $ 7,990,435 2,849,402 28,994 28,994 28,107 895,704 28,107 177,163 895,704 177,163 91,432 419,206 91,432 419,206 12,480,443 12,480,443
1,926,430 787,879 1,926,430 787,879 105,720 783,771 105,720 233,180 783,771 233,180 --244,881 394,925 244,881 24,281 394,925 24,281 4,501,067 4,501,067
-----------
1,926,430 787,879 1,926,430 787,879 105,720 783,771 105,720 233,180 783,771 233,180 --244,881 394,925 244,881 24,281 394,925 24,281 4,501,067 4,501,067
4,551,773 1,147,325 4,551,773 762,698 1,147,325 1,227,868 762,698 1,227,868 7,689,664 7,689,664 12,190,731 12,190,731
35,902 35,902 --35,902 35,902 35,902 35,902
4,587,675 1,147,325 4,587,675 762,698 1,147,325 1,227,868 762,698 1,227,868 7,725,566 7,725,566 12,226,633 12,226,633
122,358 122,358 436,619 436,619 558,977 3,138,237 558,977 3,138,237 $ 3,697,214 $ 3,697,214
131,452 131,452 99,081 99,081 230,533 2,323,807 230,533 2,323,807 $ 2,554,340 $ 2,554,340
253,810 253,810 535,700 535,700 789,510 5,462,044 789,510 5,462,044 $ 6,251,554 $ 6,251,554
See accompanying Notes to Consolidated Financial Statements. See accompanying Notes to Consolidated Financial Statements.
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- 2 - 2 -
2013 Total 2013 Total
2012 Total 2012 Total
2011 Total 2011 Total
- $ 7,990,435 2,849,402 - - $ 7,990,435 331,139 331,139 2,849,402 24,281 53,275 331,139 331,139 24,281 53,275 28,107 895,704 -28,107 177,163 -895,704 -177,163 91,432 -(419,206) 91,432 (419,206) (63,786) 12,416,657 (63,786) 12,416,657
$ 8,191,872 2,199,732 $ 8,191,872 808,970 2,199,732 37,908 808,970 37,908 11,347 806,279 11,347 161,144 806,279 212,335 161,144 37,766 212,335 37,766 12,467,353 12,467,353
$ 7,868,888 2,018,075 $ 7,868,888 186,229 2,018,075 142,693 186,229 142,693 876,852 960,425 876,852 189,232 960,425 189,232 170,003 170,003 12,412,397 12,412,397
-----------
1,926,430 787,879 1,926,430 787,879 105,720 783,771 105,720 233,180 783,771 233,180 --244,881 394,925 244,881 24,281 394,925 24,281 4,501,067 4,501,067
1,877,822 794,748 1,877,822 794,748 201,809 648,114 201,809 232,015 648,114 469,110 232,015 469,110 237,726 141,561 237,726 832,625 141,561 28,069 832,625 28,069 5,463,599 5,463,599
2,001,145 832,487 2,001,145 832,487 233,324 804,954 233,324 233,470 804,954 587,441 233,470 103,590 587,441 103,590 746,995 237,632 746,995 42,658 237,632 42,658 5,823,696 5,823,696
----
4,587,675 1,147,325 4,587,675 762,698 1,147,325 1,227,868 762,698 1,227,868 7,725,566 7,725,566 12,226,633 12,226,633
4,559,005 872,018 4,559,005 719,108 872,018 722,165 719,108 722,165 6,872,296 6,872,296 12,335,895 12,335,895
4,631,793 616,209 4,631,793 745,890 616,209 1,245,547 745,890 1,245,547 7,239,439 7,239,439 13,063,135 13,063,135
(63,786) 190,024 (63,786) 190,024 933 536,633 933 536,633 (62,853) 726,657 389,545 5,851,589 (62,853) 726,657 389,545 5,851,589 $ 326,692 $ 6,578,246 $ 326,692 $ 6,578,246
131,458 131,458 527,998 527,998 659,456 5,192,133 659,456 5,192,133 $ 5,851,589 $ 5,851,589
(650,738) (650,738) (27,497) (27,497) (678,235) 5,870,368 (678,235) 5,870,368 $ 5,192,133 $ 5,192,133
Temporarily Restricted Temporarily Restricted $ $
National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Activities National Active and Retired Federal Employees Association National Active and Retired Federal Employees Association and Affiliate Affiliate For the Year Ended December 31, 2013 and (Withof Comparative Totals for the the YearsYear Ended December 2012 and 2011)31, 2013 Consolidated Statement Cash Flows For Ended31, December Consolidated Statement of Cash Flows (With Comparative Totals for the Years Ended December 31, 2012 and 2011)
For the Year Ended December 31, 2013 2013 (With Comparative Totals for the Years Ended December 31, 2012 and 2011) Unrestricted Board Designated
Operating
Revenues and Support Membership $ 7,883,131 $ 107,304 Cash FlowsDues from Operating Activities Contributions - Calendar and Cards 2,849,402 Increase (Decrease) in Net Assets Contributions - PAC Adjustments to Reconcile Increase (Decrease) Contributions - Silver Circle and Other 28,944 in Net 50 Assets to- Protect Net Cash Provided by (Used in) Contributions America’s Heartbeat 28,107 Operating Activities Advertising Depreciation and Amortization 895,704 Royalties 177,163 Net Realized and Unrealized (Gains) Losses National Convention Revenue on Investments Other 91,432 LossReleased on Disposal of Property and359,206 Equipment 60,000 Net Assets from Restrictions
(Increase) Decrease in Assets - Net 12,313,089 Prepaid Expenses and Deposits Expenses Increase Program Services (Decrease) in Liabilities Accounts Payable and Accrued Expenses Communications 1,926,430 RebatesChapter to Federations 787,879 Dues Payable New Member Rebates to Deferred Revenue Total Revenues andReceivable Support Accounts
167,354
Total Unrestricted
Temporarily Restricted
2013
$ 7,990,435 $ 2,849,402 $ 726,657 $ 331,139 28,994 24,281
28,107
11,347 806,279 242,169 161,144 212,335 180,953 37,766 - -
876,852 960,425 189,232 170,003 -
(66,419) 1,926,430 787,879 (39,349) (164,649)
3,240 2,001,145 1,877,822 794,748 (12,677) 832,487
-
105,720 783,771 233,180 520,309 244,881 (1,733,199) 394,925 1,424,186 24,281 (795,662) -
-
Total Program Servicesby (Used in) 4,501,067 Net Cash Provided Investing Activities
-
(163,259)
4,501,067
-
(1,104,675) 4,587,675 (584,366) 1,147,325 1,739,659 762,698 1,227,868
$ 1,155,293
35,902
7,725,566
Supplementary Disclosure of Cash 12,190,731 Flow Information Total Expenses 35,902 Cash Paid during the Year for Income Taxes
12,226,633
$
Increase (Decrease) in Net Assets Assets from Operations
122,358
131,452
253,810
Investment Income (Losses)
436,619
99,081
535,700
558,977 3,138,237
230,533 2,323,807
789,510 5,462,044
$ 3,697,214
$ 2,554,340
$ 6,251,554
Net Assets, End of Year
$ 8,191,872 $ 7,868,888 2,199,732 2,018,075 $ 808,970 (678,235) 186,229 37,908 142,693
12,467,353 (24,285) 12,412,397
Federations and Chapters 105,720 Legislative Program 783,771 Net CashProgram Provided by (Used233,180 in) Retirement Benefits Operating Public Relations ProgramActivities Pre-Retirement Seminars Program National Convention Cash Flows from Investing Activities Protect America’s Heartbeat 244,881 Purchases of Investments NARFE-PAC 394,925 Sales and Maturities of Investments 24,281 NARFE Alzheimer’s Fund Purchases of Property Life Membership Fund and Equipment -
Increase (Decrease) in Net Assets Net Assets, Beginning of Year
$ 7,990,435 2,849,402 659,456 331,139 53,275
12,416,657 30,201
-
7,689,664
2011
12,480,443(30,203) (63,786)
1,926,430(17,286) 787,879 7,016
Total Supporting Services
2012
2011 Total
177,163 (355,915) 91,432 53,134 -
-
Cash and Cash Equivalents, End of Year
2012 Total
28,107 895,704335,350 177,163 (339,993) 91,432 419,206 (419,206)
2,027
Supporting Services General Administration 4,551,773 35,902 NetMembership Increase (Decrease) Equivalents Recruitment in Cash and Cash 1,147,325 Cash and CashServices Equivalents, Beginning of Year Membership 762,698 Fund-Raising 1,227,868 -
2013 Total
370
64,530
7,684
249,436
105,720 783,771 233,180 438,683 244,881 (327,169) 394,925 641,615 24,281 (282,559)-
201,809 648,114 232,015 (31,715) 469,110 237,726 141,561 (4,066,203) 832,625 4,155,480 28,069 (153,508) -
4,501,067
5,463,599
31,887 4,587,675
470,570 1,147,325 1,269,089 762,698
-
7,725,566
-
12,226,633
1,227,868
$ 1,739,659 $
933 (62,853) 389,545 326,692
233,324 804,954 233,470 587,441 103,590 746,995 237,632 42,658 5,823,696
(64,231)
-
(63,786)
$
895,704 257,694
455
4,559,005 4,631,793 (95,946) 616,209 872,018 1,365,035 719,108 745,890 722,165 1,245,547
$ 1,269,089 $
6,872,296
7,239,439
12,335,895
13,063,135
755
190,024
131,458
(650,738)
536,633
527,998
(27,497)
726,657 5,851,589
659,456 5,192,133
(678,235) 5,870,368
$ 6,578,246
$ 5,851,589
$ 5,192,133
See accompanying Notes to Consolidated Financial Statements.
- 2 See accompanying Notes to Consolidated Financial Statements.
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National Active and Retired Federal Employees Association and Affiliate Notes to Consolidated Financial Statements December 31, 2013 1. ORGANIZATION National Active and Retired Federal Employees Association (the “Association”) was established to advance the general welfare of its members and to aid them in securing their rights under federal retirement laws. Fiftyfour (54) federations, located in the United States, Panama, Puerto Rico, and the Philippines, are affiliated with the Association and conduct local independent programs. Ten percent of all eligible member national dues collected are rebated to these federations to facilitate local association activities. In addition, there are 1,291 chapters affiliated with the Association that are located in the United States and some international locations. The chapters are established by members to increase the scope and effectiveness of the Association. Chapter dues, which are not reported as revenues and expenses of the Association in the accompanying consolidated statement of activities, are established by the chapters and are billed and collected by the Association with the national dues. However, the Association rebates to the chapters’ one-third of the national fee charged for all new members. The consolidated financial statements include the assets, liabilities, net assets, activities, and cash flows of the Association and its political action committee (NARFE-PAC or Affiliate), which was authorized by the executive board of the Association. All significant interorganization balances and transactions were eliminated in consolidation. The financial information of the 54 federations and the 1,291 chapters is not included in the Association and Affiliate’s consolidated financial statements.
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The consolidated financial statements have been prepared on the accrual basis of accounting. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits in checking accounts, certificates of deposit with original maturities of less than 90 days, money market accounts, and overnight investment accounts. Investments Investments in debt and equity securities are stated at fair value as determined from published sources. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist primarily of amounts due to the Association for advertising in the December 2013 issue of narfe magazine, royalties, and seminars. Accounts receivable are reported at their outstanding balances. The Association provides an allowance for doubtful accounts, as needed, for accounts deemed uncollectible. The allowance for doubtful accounts as of December 31, 2013, was $2,000.
Management periodically evaluates the adequacy of the allowance for doubtful accounts by considering the Association’s past receivables loss experience, known and inherent risks in the accounts receivable population, adverse situations that may affect an obligor’s ability to pay, and current economic conditions. The allowance for doubtful accounts is increased by charges to bad debts expense and decreased by charge offs of the accounts receivable balances. Accounts receivable are considered past due when no payments have been received for 30 days. Accounts receivable are charged off based on management’s case-by-case determination that they are uncollectible. Property and Equipment Property and equipment are stated at cost and are depreciated and amortized on the straight-line method over the useful lives of the assets, ranging from 3 to 40 years. The Association capitalizes items of property and equipment costing $1,500 or more. Depreciation and amortization expense for the year ended December 31, 2013, was $335,350. Net Assets The Association and Affiliate classify net assets into two categories, unrestricted and temporarily restricted. All contributions are considered to be available for unrestricted use unless specifically restricted by the donors. Temporarily restricted net assets are contributed with donor-imposed purpose or time restrictions and are to be used for the restricted purposes or time periods as requested by the donors. The Association and Affiliate had no permanently restricted net assets at December 31, 2013. Included in unrestricted net
assets as of December 31, 2013, is $2,000,000 that is designated by the Association’s executive board to pay operating expenses should the Association’s operations be disrupted by an unforeseen event. Also included in board-designated net assets are amounts for the life membership fund and building fund. Membership Dues Annual membership dues are deferred when received and are recognized as revenue over the periods covered by the memberships. Life membership dues are recognized as revenue over the duration of the life membership based on the collective average life expectancy for life members, according to the “United States Life Tables,” 2003, published in the National Vital Statistics Reports, Volume 54, Number 14, April 2006. Contributions The Association and Affiliate report contributions as support when they are received. The Association and Affiliate report contributions as temporarily restricted support if restricted for use for specific programs or time periods. When donor restrictions expire, that is, when purpose or time restrictions are accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the consolidated statement of activities as net assets released from restrictions. Royalties Royalties are earned by the Association for granting the use of its name to third parties that market services to Association members. Revenues from these activities are recorded when earned. Rebates to Federations and Chapter Dues and Rebates Rebates to federations and chapter dues payable for renewing members are disbursed to
federations and chapters after their receipt in the Association’s headquarters. Rebates due to the federations on life members are deferred for the duration of the life membership and disbursed to federations monthly, when earned. New member rebates disbursed to federations and chapters were approximately $40,800 and $65,000, respectively. Income Taxes The Association is exempt from federal income taxes under Section 501(c)(5) of the Internal Revenue Code and applicable state law. The accounting standard on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Under that guidance, the Association may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities based on the technical merits of the position. Examples of tax positions include the tax-exempt status of the Association and various positions related to the potential sources of unrelated business taxable income (UBTI). The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. There were no unrecognized tax benefits identified or recorded as liabilities for 2013. The Association’s policy would be to recognize interest and penalties, if any, on tax positions related to its unrecognized tax benefits in income tax expense in the consolidated financial statements. No interest and penalties
were assessed or recorded during 2013. The Association’s Forms 990, Return of Organization Exempt from Income Tax, that have been filed as of December 31, 2013, for 2012, 2011, and 2010 are subject to examination by the Internal Revenue Service, generally for three years after they were filed. NARFE-PAC is generally exempt from federal income tax under Section 527 of the Internal Revenue Code. However, interest revenue earned on NARFE-PAC investments is subject to federal and state income taxes. The taxes on that interest for the year ended December 31, 2013, were not significant. As of December 31, 2013, NARFE-PAC’s tax returns filed with the IRS for the years ended December 31, 2012, 2011, and 2010 remain open for examination. Prior Years’ Comparative Totals The consolidated financial statements include certain prior years’ summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Association and Affiliate’s consolidated financial statements for the years ended December 31, 2012 and 2011, from which the summarized information was derived. 3. CONCENTRATION OF CREDIT RISK For purposes of Federal Deposit Insurance Corporation (FDIC) coverage, cash accounts are maintained in several different banks. As of December 31, 2013, bank deposits exceeded the $250,000 FDIC-insured limit by $545,379.
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National Active and Retired Federal Employees Association and Affiliate Notes to Consolidated Financial Statements December 31, 2013 4.
4.
National Active and Retired FederalVALUE Employees Association and Affiliate 4. INVESTMENTS AND FAIR INVESTMENTS AND FAIR V ALUE M EASUREMENTS MEASUREMENTS As of December the Association and Affiliate’s only assets or Notes31, to 2013, Consolidated Financial Statements As of December 31, 2013, the Association and Affiliate’s only assets or liabilities liabilities measured at fair value on recurring basis consisted of the folDecember 31,a2013 measured at fair value on a recurring basis consisted of the following investments: lowing investments: Level 1 Fair Value Inputs As of December 31, Equity 2013, Mutual the Association and Affiliate’s only assets $or3,117,933 liabilities Corporate Stocks and Funds $ 3,117,933 measured fair value on a recurring basis consisted of the following investments: CorporateatBonds 2,212,259 2,212,259
INVESTMENTS AND FAIR VALUE MEASUREMENTS
Government Backed Securities Certificates of Deposit
158,310 53,592 Fair Value 5,542,094 $$ 3,117,933
158,310 Level 1 53,592 Inputs Total Investments 5,542,094 Corporate Stocks and Equity Mutual Funds $$ 3,117,933 Corporate Bonds 2,212,259 2,212,259 Financial assets valued using Level 1 inputs are based on unadjusted quoted market prices Government Backed Securities 158,310 Financial assets valued using Level 1 inputs are158,310 based on unadjusted within active markets. Certificates of Deposit 53,592 53,592 quoted market prices within active markets. Financial assets valued using Level 2 inputs are based primarily on quoted prices for Total Investments Financial assets valued using Level 2 inputs based primarily on $ are 5,542,094 $ 5,542,094 similar assets in active or inactive markets.
quoted prices for similar assets in active or inactive markets.
Financial assets valued 13inputs are on valued unadjusted marketusing prices Financial assetsassets valuedusing usingLevel Level inputs, if based any, are usingquoted unobservable inputs Financial valued using Level 3 inputs, if any, are valued within active markets. to measure fair value to the extent that observable inputs are not available, thereby allowing
unobservable inputs to measure fair value to the extent that observable for situations in which there is little, if any, market activity for the asset or liability at the Financial assets using Level 2 inputs are based primarily on in quoted prices for is inputs are notvalued available, thereby allowing for situations which there measurement date. The fair value measurement objective is to determine an exit price from similar assets in market active or inactive markets. little, if any, forthat the asset or liability at the measurement the perspective of a marketactivity participant holds the asset or owes the liability. date. The fairvalued valueusing measurement to determine an exitinputs price Financial assets Level 3 inputs,objective if any, are is valued using unobservable None of theperspective Association andofAffiliate’s financial assets arethat valued using the Levelasset 3 inputs. from the a market participant holds or owes to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which is little, any, market for the asset liability at the the liability. Investment income for there the year endedifDecember 31,activity 2013, consisted of theorfollowing: measurement The fair value measurement objective is to determine exit price from None of date. the Association and Affiliate’s financial assets an are valued using the perspective of a market participant that holds the asset orTemporarily owes the liability. Level 3 inputs. Unrestricted Restricted Total None of the Association and Affiliate’s financial assets are valued using Level 3 inputs. Dividends and Interest $ 195,707 $ 933 $ 196,640 Investment income for the year ended December 31, 2013, consisted of Net Realized and Unrealized 339,993 - following: 339,993 Investment income for the yearGains ended December 31, 2013, consisted of the
the following:
Total Investment Income
$ 535,700 $ 933 $ 536,633 Temporarily Unrestricted Restricted Total Dividends and Interest $ 195,707 $ 933 $ 196,640 NetNational Realized Active and Unrealized Gains 339,993 and Retired Federal Employees Association and Affiliate 339,993
5. 5.
6.
7. SUBSEQUENT EVENTS The Association and Affiliate have evaluated subsequent events through March 26, 2014, the date on which the consolidated financial statements were available to be issued.
Additional NARFE Financial Data The salaries of the National Executive Board, as of December 31, 2013, are as follows:
Total Investment Income $ 535,700 $ 933 $ 536,633 to Consolidated Financial Statements National ActiveNotes and Retired Federal Employees Association and Affiliate December 31, 2013 Notes to Consolidated Financial Statements December 31, 2013 5. TEMPORARILY RESTRICTED RESTRICTED NET ASSETS- 8 -NET ASSETS TEMPORARILY
President: $113,298
Temporarily net Nassets are available for the following purposes as of T EMPORARILY RESTRICTED ASSETS poses as of restricted December 31,ET2013: December 31, 2013: Temporarily restricted net assets are available for the following purposes as of NARFE-PAC $ 290,505 December 31, 2013: - 8 NARFE Alzheimer’s Fund 36,187 NARFE-PAC $ 290,505 Total Temporarily Restricted Net Assets $ 326,692 NARFE Alzheimer’s Fund 36,187
Regional Vice Presidents: $25,159.
Temporarily restricted net assets are available for the following pur-
Total Temporarily Restricted Assetsrestrictions by incurring expenses or $ otherwise 326,692 Net assets were released fromNet donor Net assets were purposes released donor by incurring satisfying the restricted forfrom the year endedrestrictions December 31, 2013, as follows: expenses Net assets were satisfying released from restrictions by incurring expenses or otherwise or otherwise thedonor restricted purposes for the year ended DecemNARFE-PAC $ 394,925 satisfying the restricted purposes for the year ended December 31, 2013, as follows: ber 31, 2013, as follows: NARFE Alzheimer’s Fund 24,281 NARFE-PAC $ 394,925 Total Net Assets Released from Restrictions NARFE Alzheimer’s Fund 24,281 $ 419,206 Due to Satisfaction of Program Restrictions Total Net Assets Released from Restrictions $ 419,206 Due to Satisfaction RETIREMENT PLAN of Program Restrictions
The Association contributes 2 percent of each eligible employee’s annual compensation to R ETIREMENT PLAN a retirement savings plan and also matches 60 percent of each employee’s voluntary contribution (up contributes to 6 percent2of annualofcompensation). For employees to compensation be eligible, they The Association percent each eligible employee’s annual to must have been employed Association least six Total contributions a retirement savings plan by andthealso matches for 60 at percent of months. each employee’s voluntary made by the Association were of $143,599 for the year ended 31,to2013. contribution (up to 6 percent annual compensation). ForDecember employees be eligible, they must have been employed by the Association for at least six months. Total contributions UBSEQUENTAssociation EVENTS 7. S 64 made by the | J U N 2 0 1 4 were $143,599 for the year ended December 31, 2013.
6.
7.
6. RETIREMENT PLAN The Association contributes 2 percent of each eligible employee’s annual compensation to a retirement savings plan and also matches 60 percent of each employee’s voluntary contribution (up to 6 percent of annual compensation). For employees to be eligible, they must have been employed by the Association for at least six months. Total contributions made by the Association were $143,599 for the year ended December 31, 2013.
The Association and Affiliate have evaluated subsequent events through March 26, 2014, EVENTS SUBSEQUENT the date on which the consolidated financial statements were available to be issued.
Vice President: $105,747 Secretary: $101,442 Treasurer: $101,442
In 2013, NARFE’s investments were held with these firms: • Morgan Stanley • Vanguard • Wells Fargo Advisors.
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Member Perks
NARFE Member Perks
are designed to provide NARFE members with a quality option in their search for commonly used products and services. NARFE makes no guarantee on any products and services listed, and encourages its members to shop and compare before making a decision on any financial matter.
Credit Union
NARFE Premier Federal Credit Union 800-328-1500 www.NARFEpremierfcu.org As a member of NARFE, you have the privilege of joining NARFE Premier Federal Credit Union, which has been serving members since 1935. We offer extensive services at competitive rates to members nationwide. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. For more information, call the number above, email jparish@narfepremierfcu.org or visit the website.
insurance
NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed and administered by Mercer Health & Benefits Insurance Services, LLC, exclusively for NARFE members: Senior Whole Life, Term Life, Medicare Supplements, Hospital Income Plan, Short Term Recovery Insurance, Pet Insurance, Accidental Death & Dismemberment, Cancer Care, Enhanced Dental Insurance and Long Term Care. Go to the website for more information on these programs.
GEICO 800-368-2734 NARFE members with good driving records may be eligible for quality automobile insurance from GEICO. Ask about the NARFE discount available to members in many states. Call to66
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day for your free, no-obligation rate quote. Be sure to mention that you’re a NARFE member! • Discount amount varies in some states • Discount not available in all states or in all GEICO companies • One group discount applicable per policy.
Federal Long Term Care Insurance Program 800-LTC FEDS www.LTCFEDS.com Make long-term care insurance part of your retirement plan. With benefits designed specifically for the federal family, the Federal Long Term Care Insurance Program offers a smart way to help protect savings and assets, and remain independent should you need long-term care services someday. Start planning for the future. Visit www.LTCFEDS.com today.
Vacation rentals
Government Employees Travel Opportunities® 877-867-3639 www.getravelop.com/narfe Offers government employees, retirees and their families 7-night stays for only $349 on accommodations at popular destinations worldwide. Book online and save on your next vacation stay.
hotels
Choice Hotels International 800-258-2847 www.choicehotels.com With 6,000 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. Join the Choice Privileges® rewards program and earn points with every qualifying stay toward free nights, Airline Rewards, gift cards and more. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer. Advance reservations required.
Wyndham Hotel Group 877-670-7088 As a member of NARFE, you will receive up to 20% off the “Best Available Rate” at participating locations. Call and give the agent your special discount ID number, 8000002694, at time of booking to receive discount. Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now. Call our special member-benefits hotline 877-670-7088 and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®.
car rentals
National You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation call National Car Rental at 1-800-CAR-
RENT® and reference Contract ID 5282909.
experience. Call Angela and mention you are a NARFE member to start the moving process.
Alamo Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call 1-800-462-5266 and reference Contract ID 262544.
Avis The employees/owners of Avis offer guaranteed low rates and quality services to members of NARFE. Call 800-331-1441 and mention ID# A991900.
emergency services
MASA 800-423-3226 Medical Air Services Association has been the industry leader in prepaid emergency assistance services for more than 30 years. NARFE members have experienced MASA’s “peace of mind” services since 2001. Now NARFE members are entitled to even more: air ambulance transportation, helicopter transportation, ground ambulance, vehicle return, mortal remains transport, and much more! Call MASA Today. It Could Save Your Life!
Moving services
Bekins Van Lines 800-248-4810 www.narfe@bekins.com All NARFE members will receive contracted pricing for all interstate shipments. This will apply to packing, transportation and full-value coverage against damages. In addition, Bekins Van Lines can assist with instate shipments, local moves and international moves with competitive pricing and quality service. Please mention you are a NARFE member and ask for Todd.
Wheaton World Wide Moving 888-248-7960 www.narfe@wvlcorp.com At Wheaton, we know interstate relocating is much more than trucks and boxes. Moving is not simply an address change. It’s a life change. With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation. We offer you, as a NARFE member, benefits to help you have a positive interstate relocation
health screening
Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct the following screenings using state-of-the-art ultrasound technology in your neighborhood. 1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease. You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share these test results with your doctor. All four screenings cost just $135. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website. Coverage may vary and may not be available in all states.
education
Ivy Bridge College 877-615-9246 http://ivybridge.tiffin.edu/ narfe Want to earn your associate’s degree before you transfer to a four-year school? Ivy Bridge College offers a variety of degree programs that will help put you on the right track. No matter which program you choose, an education with Ivy Bridge will provide you with a solid foundation for a rewarding future. NARFE members and their families can enjoy an exclusive 5 percent savings on tuition at Ivy Bridge, a unique online institution that provides a highly supported pathway to a bachelor’s degree. To learn more, call or visit the website.
narfe merchandise
NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.com As the official provider of NARFE merchandize, the NARFE General Store offers NARFE-approved name badges, business cards, customizable logo products and plaques. Check out our online catalog.
NOT A MEMBER? GO ONLINE: It’s easy to join online at www.narfe.org. Click “Join NARFE.” TURN TO PAGE 56: Fill out the Membership Application and mail it to NARFE to receive all the perks of being a NARFE member. Call (Toll-Free) 800-627-3394.
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The Way We Worked
Catch and Hatch at Yosemite
This 1934 photo shows U.S. Department of the Interior employees working in a hold tank used for egg-taking activities at Lake Eleanor in Yosemite National Park. Eggs were taken from live fish, hatched in the Yosemite Hatchery and the fry put back into the park’s lakes and streams. Today, visitors can enjoy fishing and swimming at the Lake Eleanor Reservoir. The lake also is an important source of water for San Francisco and other California communities. Photo courtesy of Caroline Rahmlow, National Archives, Office of the Historian, Records of the Office of Personnel Management, National Archives; in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. Website: http://shfg.org/shfg/.
Did you know? The U.S. Fish and Wildlife Service, a Bureau within the Department of the Interior, works with landowners, governments, other federal agencies and even foreign countries to conserve fisheries. Among other things, staff biologists collaborate on fishery restoration within the National Fish Hatchery System. (The Yosemite Hatchery, mentioned in the caption, closed in 1956.)
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Available to members and their spouses with Guaranteed Acceptance!
You’ve worked hard and made sure your family has what they need to live well. But many of life’s events are simply out of your control—an unexpected accident or a serious illness that could take you away from your loved ones—or the current economic times that could make going on without you a financial hardship.
With inflation and rising medical costs, it’s important to know your life insurance coverage will allow your family to cover outstanding bills, unexpected expenses and debts you leave behind. With your membership in NARFE, you are automatically eligible to secure up to $25,000 in affordable life coverage to help further protect those closest to you from financial difficulties. The NARFE Senior Whole Life Insurance Plan is a permanent plan that builds cash value and will never run out as long as premiums are paid. Your acceptance is guaranteed no matter your current health condition. There are NO health questions asked and NO medical tests to take. And, your rates and benefit amount will be locked-in permanently.
NARFE Senior Whole Life Insurance: • Qualify for coverage from age 45 - 85. • You and your spouse are guaranteed acceptance. You cannot be turned down for coverage and ALL pre-existing conditions are accepted. • Member rates that will never increase. • Benefit amounts will never decrease no matter your age or health issues. • Builds cash value. • Provides borrowing privileges. • Pays benefits directly to the person you choose. • Automatically pays benefits at age 100*.
Learn more about the NARFE Senior Whole Life Insurance Plan and request your FREE information kit. Call 1-800-455-7154 today! Hearing-impaired or voice-impaired members may call the Relay Line at 1-800-855-2881. *Age 120 in FL Not available in all states. Policy availability and benefit amounts offered may vary by state. Offer void where prohibited by law.
AR Ins. Lic. #303439, CA Ins. Lic. #OG39709 In CA d/b/a Mercer Health & Benefits Insurance Services LLC 65758 (6/14) Copyright 2014 Mercer LLC. All rights reserved.
www.narfeinsurance.com
per pair
Our shoe buyer got a little frisky, knowing that next month prices would go up. So he bought plenty, & the rafters are bursting!
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• Padded ankle collars • Hand-stitched mocc toe • Twin elastic insets • Updated TPR outsole with excellent traction
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EVA inserts in heel and forepart for added shock absorption
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