August 2015 NARFE Magazine by NARFE

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Feds’ data exposed in OPM Hack

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change is coming to the CFC

COVER STORY

dual status A small cadre of feds has civilian and military roles

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Volume 91 • Number 8

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WashingTon Watch

NARFE Seeks Answers in OPM Data Breaches

Grass-Roots Advocacy Works: Here’s Proof

10 NARFE President and

Postmaster General Meet on Postal Issues

10 USPS Suspends Closures 11

NARFE Asks Council for Phased Retirement Info

12 Senate Panel Approves

Bill to Streamline Hiring

13 NARFE Bill Tracker

Cover Story dual status. A small cadre of employees occupy hybrid civilian/military positions known as dual-status technicians. They are a federal breed apart.

Columns

From the President

36 Managing Money 38 The Informed Citizen DEPARTMENTS

Change is coming to the cfc. New methods of giving and expanded options make it easier for federal employees and retirees to participate.

Questions & Answers

40 For the Record: TSP

Investments, COLA Chart

42 NARFE News On the Web

48 The Way We Worked

visit us online at:

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ON THE COVER

Illustration by Bill Pragluski, Critical Stages, LLC

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august 2015 | Volume 91 | Number 8

Editor Margaret M. Carter Assistant Editor Ken Fanelli Editorial Administrator Toni Vallario

National Active and Retired Federal Employees Association NATIONAL OFFICERS RICHARD G. THISSEN, President; natpres@narfe.org JON DOWIE, Secretary/Treasurer; natsectreas@narfe.org

Graphic Design Charlene Gridley Editorial Board Richard G. Thissen, Jon Dowie

Editorial Office: narfe magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Email: communications@narfe.org Advertising Sales: Warren Berger Media People Inc. 122 East 42nd St., Suite 1622 New York, NY 10168 Phone: 212-779-7172, ext. 223 Email: wberger@mediapeople.com NARFE for the Visually Impaired On the Telephone: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-5047300 or go to www.nfbnewsline.org. On digital audio: Issues of narfe magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider. The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

REGIONAL VICE PRESIDENTS

REGION I James P. Crawford (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 603-630-5191 Email: crawfordjim62@gmail.com REGION II Evelyn Kirby (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-604-1141 Email: ekirby@atlanticbb.net REGION III Jerry Janci (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) Tel: 662-412-2029 Email: lettermanj@aol.com REGION IV Edward J. Konys (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 937-470-0566 Email: region4vp@gmail.com REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 620-241-1131, CELL: 620-504-2202 Email: ek617@att.net

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narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $45. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2015, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in narfe, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President

The Data Breaches at OPM

ver since I got the phone call on the afternoon of Thursday, June 4, from the Office of Personnel Management

(OPM) alerting me that OPM was about to announce that its computer systems had been hacked, compromising the employment records of 4.2 million current and former federal employees, NARFE Headquarters has been focused on helping members cope with this data breach, as well as a second breach announced a week later.

Immediately after the initial announcement, we set up a dedicated space on the home page of the NARFE website for news about the cyberattack and have been updating it as we get additional information. Our Federal Benefits Service Department staff members have been

fielding calls and email messages from NARFE members with many unanswered questions. My staff and I have been in frequent communication with OPM to try to ascertain the scope of the incidents. Iâ&#x20AC;&#x2122;ve had one face-to-face meeting with OPM Director Katherine Archuleta about the breaches, and I will continue to press her for answers to your questions. As part of the Federal-Postal Coalition, NARFE also has written to President Obama, asking him to appoint a public-private task force to help investigate the cyberattacks and rebuild our federal personnel databases. The breaches at OPM remind us that every American needs to be concerned about the threat of identity theft. I recommend that you keep informed of the specifics of the OPM breaches by reading the updates on the NARFE website and consider availing yourself of identity protection and credit monitoring services, if you havenâ&#x20AC;&#x2122;t already. It appears that large databases, such as those kept by government agencies, health insurers, credit card processors and financial institutions, are fair game for hackers. Sadly, that means all of us are at risk of attack by those who are intent on stealing information or who want to disrupt our daily lives and cause havoc.

Richard G. Thissen NARFE national President natpres@narfe.org

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Washington Watch

NARFE seeks answers in massive OPM data breaches affecting feds

t deadline, NARFE continued to keep the pressure on the Office of Personnel Management (OPM) to provide more information about two massive

cybersecurity incidents that left millions of current and former federal employees vulnerable to identity theft.

“Like you, I remain frustrated there are more questions than answers,” NARFE President Richard G. Thissen said following a meeting with OPM Director Katherine Archuleta. “Be assured that we have relayed all of your questions and concerns to OPM, and we are continuing to seek answers.” In addition to the June 29 meeting at OPM, Thissen and NARFE staff have been in frequent communication with OPM officials. The Association immediately created a page on the NARFE website, www.narfe.org, to provide members with reliable information. “We will continue to keep NARFE members updated on this issue every step of the way,” Thissen vowed. The website is the best source of in-depth information on the security breaches. 8

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Timeline. The incidents were revealed over two weeks in June: • On June 4, OPM announced that a cyberattack compromised the employment data of about 4 million active, former and retired federal employees. OPM said it had detected the breach in April. Later it revealed the breach had occurred in December 2014. It said it would notify affected individuals, through email or postal mail, and offer them credit monitoring and identity theft protection services. • On June 12, OPM announced that other OPM computer systems, having to do with background investigations of current, former and prospective federal employees, may have been compromised. It later confirmed that breach. It has not said how many

individuals’ records may have been compromised in this incident, but media reports claim it could be more than 18 million. NARFE Actions. In addition to vigorously seeking answers, NARFE has requested OPM extend credit monitoring for those affected beyond the 18 months it is providing. NARFE also signed a letter sent by the Federal-Postal Coalition to President Obama calling for a task force of federal and private-sector security experts to assist in the investigation and in rebuilding the government’s personnel databases. NARFE’s Federal Benefits Service Department has been answering member questions on the breaches. The most-frequently asked questions include: Q. Some of my coworkers received email notification, but I haven’t. Who do I call? A. OPM said those affected by the cyberattack announced June 4 would be sent notification by June 19. If you haven’t been notified, but think you should have been, call, toll-free, 844-777-2743.

GRASS-ROOTS ADVOCACY WORKS: HERE’S PROOF Q. Can we find out what exactly was in our hacked files? A. OPM initially said that name, Social Security number, date and place of birth, and current and former address may have been compromised in the hack announced June 4. However, on June 18, OPM also said that employee records sent by agencies to OPM for future processing may have been compromised. The information could include records needed to calculate retirement annuities such as SF 2806 (history of pay and retirement contributions), court orders and other “sensitive information.” OPM has not said what kind of information may have been compromised in the hack announced June 12 involving background investigations. Q. How do I know if the email notification I received is legitimate? A. For individuals affected by the hack announced June 4, the email will come from this address: opmcio@csid.com. If you are still unsure, you can call CSID, tollfree, at 844-777-2743. Precautions. NARFE members not affected also may want to take precautions against identity theft. NARFE’s Web page on the OPM breaches provides guidance. In addition, two narfe magazine articles may be helpful: “Safeguard Your Credit and Personal Data,” May 2015, p. 52, and “You’ve Been Breached,” September 2014, p. 30. Issues are archived at www.narfe. org/narfemagazine.

uring August, which NARFE designates as “Grass-Roots Advocacy Month,” the Association tells members: “Now is the time to contact your members of Congress.” But does it make a difference? The simple answer is, yes. In 2011, the Congressional Management Foundation asked House and Senate staff members about the decision-making process in their offices and the importance of hearing from constituents. Here is what they said: When asked how much influence various “advocacy strategies” might have on a member of Congress who has not made a decision on an issue: • 97 percent reported that inperson issue visits with constituents had a lot or some positive influence; • 96 percent said that contact from a constituent who represents other constituents had a lot or some positive influence; and • 85 percent reported that comments during a telephone town hall had a lot or some positive influence. When asked how important various communication strategies are in understanding constituents’ views and opinions: • Attending events in the district or state was rated by 98 percent as very or somewhat important; • In-person town hall meetings were rated by 90 percent as very or somewhat important; and • District/state office hours

were rated by 90 percent as very or somewhat important. To read the full report, go to www.congressfoundation.org. Why August? During the month-long recess, members of Congress attend local events, host town hall meetings and schedule constituent meetings. This is your time to advocate! For more information on how to be an advocate during the August recess, visit www.narfe. org/legislation and www.narfe. org/heartbeat. Or contact the Legislative Department staff at 703-838-7760, ext. 201, or leg@ narfe.org. —By Sarah Weissmann, Grass-Roots Program Manager

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

NARFE and Postmaster General meet, discuss postal reform

ARFE President Richard G. Thissen met with Postmaster General Megan J. Brennan in May to discuss NARFE’s priorities and concerns with regard to postal services and potential postal reform legislation likely to be considered by Congress this year. The two discussed ways NARFE and the U.S. Postal Service could work together on common goals. Brennan was joined by Deputy Postmaster General Ronald A. Stroman, as well as Chief Human Resources Officer and Executive Vice President Jeffrey C. Williamson. Thissen was accompanied by Legislative Director Jessica Klement and Deputy Legislative Director John Hatton. Thissen told Brennan NARFE

is concerned about postal reform proposals to require Medicare Part B enrollment as a condition of continued Federal Employees Health Benefits Program coverage for postal retirees and survivors. NARFE is opposed to required enrollment, and the two discussed alternative proposals. NARFE also expressed opposition to attempts to include cuts to federal workers’ compensation benefits for the entire federal workforce in postal reform legislation, as well as attempts to eliminate the Federal Employees Retirement System (FERS) annuity for newly hired postal employees. Both the Medicare requirement and possible FERS elimination signal the start of a slippery slope for the rest of the

USPS Suspends closures

he U.S. Postal Service (USPS) has indefinitely postponed all mail-processing facility closures scheduled for 2015. It previously announced plans to close 82 facilities in 2015 as part of its “network rationalization.” The closures would have eliminated 15,000 jobs across 37 states and reduced delivery times for First-Class Mail. The planned closures have faced opposition from large, bipartisan groups of House and Senate lawmakers. On April 15, the Senate passed a nonbinding amendment to the Fiscal Year 2016 budget advising USPS to delay the facility closures scheduled for 2015.

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In its announcement of the closure delay, USPS said: “The decision to defer the next phase of the initiative was based upon operational considerations, and was made to ensure that the Postal Service will continue to provide prompt, reliable and predictable service consistent with the published service standards. The planned consolidation activities will resume in 2016. The Postal Service will continue to implement network efficiencies and to pursue service performance improvements as it has always done.” —By Jason Freeman, political and legislative specialist

federal workforce, NARFE said. Thissen expressed support for eliminating the prefunding requirement for future retiree health care and adequate delivery service standards, including sixday and to-the-door delivery. –By John Hatton, deputy legislative director

MYTH vs. REALITY Myth: Federal employees enjoy lavish pensions at the expense of taxpayers. Reality: The average federal pension is quite modest. According to June 2015 data from the Office of Personnel Management, the median pension for retirees under the Civil Service Retirement System (CSRS) was less than $3,000 a month in fiscal year 2014. For employees hired after 1986 and in the Federal Employees Retirement System (FERS), the median monthly pension was less than $1,000. CSRS employees do not pay into Social Security and, accordingly, do not receive any Social Security benefits for their government service. If they paid into Social Security for a private-sector job, their Social Security benefits are greatly diminished under the Windfall Elimination Provision. FERS employees pay Social Security taxes at the same rate as privatesector employees and receive the same benefit.

NARFE Asks Council for Information on slow pace of phased retirement

egislation authorizing phased retirement for federal employees was signed into law in July 2012. Three years later, NARFE is aware of only one federal agency, the Library of Congress, that offers phased retirement to its employees. Frustrated by the lack of action by agencies to implement the law, NARFE President Richard G. Thissen sent a letter to the Chief Human Capital Officers (CHCO) Council, which is chaired by Director of Office of Personnel Man2015_Cong_Dir_Ads_half page Archu2/23/15 agement (OPM) Katherine

leta. NARFE asked the Council to obtain and make public agencies’ progress on providing employees the option of phased retirement. Under phased retirement, federal employees are able to work a part-time schedule while beginning to draw their retirement benefits. OPM finalized regulations and guidelines for phased retirement two years after the law passed, so that federal agencies could quickly implement and offer it to their employees starting November 6, 2014. 11:06 NARFE AM Pagehas 1 heard from many

federal employees who were delaying retirement, hoping their agency would offer phased retirement, Thissen told the CHCO Council. Those who chose to delay retirement were “long-serving, dedicated public servants who felt they had knowledge to pass on to their successors,” he said. “The lack of action on the part of agencies forced many to retire, taking their years of experience with them.” NARFE had not received a response from the Council when this issue went to press. —By Carolyn Dorf, Legislative Staff assistant

Order your copy of NARFE’s CONGRESSIONAL DIRECTORY for the 114th CONGRESS (2015-2016) today! Clip and mail to: NARFE Congressional Directory, 606 N. Washington Street, Alexandria, VA 22314-1914 Name ________________________________________________ Address ______________________________________________ City _______________________ State ______ ZIP ___________ Member ID# (As it appears on narfe magazine label)

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Washington Watch

Senate Committee approves bill to streamline government hiring

bill to streamline federal similar hiring needs cannot share hiring was approved such applicant information. June 24 by the Senate The legislation would require Committee on Homeland Security the Office of Personnel Manageand Governmental Affairs. The ment to develop guidelines for Competitive Service Act, S. 1580, how federal agencies would share would allow federal agencies to information on qualified applireview and select job candidates cants. It also would require crossagency communication to share from other federal agencies’ “best potential internal candidates qualified list” of applicants. This would cut down on duplication for and meet collective bargaining requirements. applicants who have already unNARFE supports the bill, which dergone a competitive assessment was introduced by Sen. Jon Tesprocess and have been certified as ter, D-MT, with four bipartisan eligible for selection. 2015-16_PAC_Coupon_2013 Coupon 6/8/15 1:28 PM Page 1 cosponsors. “As the federal govCurrently, agencies that have

ernment continues to experience an unprecedented retirement wave, with more than 110,000 employees retiring each year, federal agencies need commonsense tools to ensure they are able to hire the best and the brightest,” NARFE President Richard G. Thissen said. “This bill provides them one such tool. “ In the House, Rep. Gerald E. Connolly, D-VA, with cosponsor Rep. Rob Wittman, R-VA, introduced a companion bill, H.R. 2827, on June 18. —By Carolyn Dorf, legislative staff assistant

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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. 138: Access to Insurance for All Americans Act / Rep. Darrell Issa, R-CA Cosponsors: 0

HEALTH CARE H.R. 2175: FEHBP Prescription Drug Oversight and Cost Savings Act / Rep. Stephen F. Lynch, D-MA Cosponsors: 2 (D) H.R. 313: Wounded Warriors Federal Leave Act / Rep. Stephen F. Lynch, D-MA Cosponsors: 27 (D), 6 (R) SICK LEAVE FOR WOUNDED VETERANS

S. 242: Wounded Warriors Federal Leave Act / Sen. Jon Tester, D-MT Cosponsors: 1 (R)

H.R. 304: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerald E. Connolly, D-VA

What Bill Would Do

Latest Action(s)

Repeals the Affordable Care Act and establishes a national health program administered by the Office of Personnel Management to offer Federal Employees Health Benefits Program plans to individuals who are not federal employees or retirees. It creates separate risk pools for federal and non-federal participants.

Referred to nine House committees

Provides the Office of Personnel Management greater oversight authority over the prescription drug contracting and pricing methods of the Federal Employees Health Benefits Program.

Referred to the House Committee on Oversight and Government Reform

Entitles any federal employee who is a veteran with a serviceconnected disability rated at 30 percent or more, during the 12-month period beginning on the first day of employment, up to 104 hours of leave, without loss or reduction in pay, for purposes of undergoing medical treatment for the disability for which sick leave could regularly be used. Requires the forfeiture of any of the leave that is not used during the 12-month period.

Approved by the House Committee on Oversight and Government Reform on 1/27/15

Provides for a 3.8 percent pay raise for federal employees in 2016.

Referred to the House Committee on Oversight and Government Reform

Approved by the Senate Committee on Homeland Security and Governmental Affairs on 3/4/15 narfe, March 2015

Cosponsors: 73 (D)

Federal Compensation

S. 164: The Federal Adjustment of Income Rates (FAIR) Act / Sen. Brian Schatz, D-HI

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 5 (D)

narfe, March 2015

H.R. 485: Wage Grade Employee Parity Act / Rep. Matt Cartwright, D-PA Cosponsors: 9 (D), 3 (R)

NARFEâ&#x20AC;&#x2122;s Position:

Support

Oppose

The president has the ability to provide a pay raise for federal employees on the General Schedule. He does not have the same authority for Wage Grade, or hourly, employees, whose raises must be authorized by Congress. H.R. 485 would give the president that authority. No position

Referred to the House Committee on Oversight and Government Reform narfe, April 2015

(Continued on p. 14) w w w. n a r f e . o r g

Washington Watch

narfe bill tracker (Continued from p. 13) ISSUE

Federal Compensation

Bill Number / Name / Sponsor

What Bill Would Do

H.R. 785: The Federal Employee Pension Fairness Act / Rep. Donna Edwards, D-MD Cosponsors: 21 (D) H.Res. 12: Expressing the sense of the House that the U.S. Postal Service should take measures to ensure continuation of six-day delivery / Rep. Sam Graves, R-MO

Postal Reform Cosponsors: 161 (D), 44 (R) H.R. 784: Protect Overnight Delivery Act / Rep. Rosa DeLauro, D-CT Cosponsors: 98 (D), 3 (R)

Campaign finance

H.R. 20: The Government By the People Act / Rep. John Sarbanes, D-MD Cosponsors: 149 (D), 1 (R) H.R. 973: Social Security Fairness Act of 2015 / Rep. Rodney Davis, R-IL

GPO/WEP

Paid parental leave

Latest action(s)

Repeals laws passed in 2012 and 2013 that increased the Federal Employees Retirement System contributions for newly hired federal employees.

Referred to three House committees

Expresses the sense of the House that the U.S. Postal Service should maintain sixday mail delivery. As a resolution, it will not be sent to the president and, therefore, cannot become law.

Referred to the House Committee on Oversight and Government Reform

Repeals the service standards implemented by the U.S. Postal Service (USPS) on 1/5/15, and directs USPS to reinstate the service standards that were in effect on December 31, 2011.

Referred to the House Committee on Oversight and Government Reform

Reforms campaign finance laws to put small donors on par with wealthier donors. Provides a tax credit for contributions and government matching contributions.

Referred to three House committees

narfe, April 2015

Repeals the Government Referred to the Pension Offset (GPO) and the House Committee on Windfall Elimination Provision Ways and Means (WEP).

Cosponsors: 84 (D), 22 (R) S. 1651: Social Security Fairness Act of 2015 / Sen. Sherrod Brown, D-OH

Referred to the Senate Finance Committee

Cosponsors: 10 (D), 4 (R)

narfe, May 2015

H.R. 532: Federal Employees Paid Parental Leave Act / Rep. Carolyn Maloney, D-NY

Allows federal employees six weeks of paid leave for the birth or adoption of a child.

Cosponsors: 52 (D), 1 (R)

Referred to the House Committees on Administration, and Oversight and Government Reform narfe, May 2015

H.R. 2827: Competitive Service Act / Rep. Gerald E. Connolly, D-VA Cosponsors: 1 (R) federal hiring

Allows federal agencies to review and select job candidates from other federal agencies’ “best qualified list” of applicants.

S. 1580: Competitive Service Act / Sen. Jon Tester, D-MT

Referred to the House Committee on Oversight and Government Reform Approved by the Senate Committee on Homeland Security and Governmental Affairs on 6/24/15

Cosponsors: 2 (D), 3 (R)

See story, p. 12 NARFE’s Position: 14

aug 2 015

Support

Oppose

No position

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Questions & Answers

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

employees How to determine the “best” date to retire

I am a federal employee under the Civil Service Retirement System (CSRS). Under CSRS, is the best date to retire based on pay periods? I am considering retiring at the end of December, but I am not sure exactly when to do this because neither December 31 nor January 1, 2016, is the end of the pay period.

In our opinion, the “best” date to retire under CSRS does not depend on pay periods. It has to do with when your annuity will begin. If you retire voluntarily during the first three days of the month, your annuity will commence the following day. Otherwise, your annuity begins on the first day of the month following the month in which you retire. Therefore, to maximize your employee pay and your retiree annuity, and to avoid any pay gap, the best dates to retire are the last day of the month or the first three days of the month.

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This “first-of-the-month-after” provision does not apply to survivor annuities, disability annuities or discontinued service annuities. These annuities begin on the day after separation, death or last day of pay, as appropriate.

Health Insurance for common-law spouse

I recently read an article in your magazine pertaining to spouses in a common-law marriage being eligible for health insurance under the Federal Employees Health Benefits Program (FEHBP). Please

define common-law marriage. I have been in a committed relationship for 16 years to someone of the opposite sex. Does this constitute a common-law situation?

A traditional commonlaw marriage is one that is entered into without formalities. If you have a valid common-law marriage (with a spouse of the opposite sex), the Office of Personnel Management considers your spouse an eligible family member for coverage under an FEHBP self-and-family plan. However, OPM considers a common-law marriage valid only if the state in which you reside recognizes common-law marriages. Only nine states and the District of Columbia recognize common-law marriages. The states are: Alabama, Colorado, Kansas, Rhode Island, South Carolina, Iowa, Montana, Utah and Texas. New Hampshire rec-

ognizes common-law marriages for purposes of probate only, and Utah recognizes common-law marriages only if they have been validated by a court or administrative order.

Medicare coverage for kidney failure

I became a federal employee less than a year ago and have been diagnosed with kidney failure. Am I eligible for Medicare based on my employment?

People who have permanent kidney failure and need kidney dialysis or a kidney transplant may be eligible for Medicare at any age based on their own earnings, or on a spouse’s or parent’s earnings.

retirees How does Aetna Direct Work with Medicare?

I have Aetna health insurance in the Federal Employees Health Benefits Program (FEHBP). I will be reaching age 65 next month and will be eligible for Medicare. I have heard of an FEHBP plan called Aetna Direct. How does Aetna Direct coordinate with Medicare?

We understand that this plan coordinates seamlessly with Medicare. If you are enrolled in Aetna Direct and take Medicare Parts A and B, Medicare would be your primary

coverage, and Aetna would waive your deductible and coinsurance for most medical services. Under Aetna Direct, you also would get a Medical Fund ($750 per year if you are enrolled in a self-only plan or $1,500 if you are in a self-andfamily plan), which you can use to reimburse yourself for some of your Medicare Part B premiums upon submitting proof of payment. Be sure to tell Aetna if you have Medicare Parts A and B or any other medical coverage.

WEP affects Social Security, not annuity

I am a retired U.S. Postal Service letter carrier and currently receive a Civil Service Retirement System (CSRS) pension. I also qualify for Social Security retirement. If I sign up for Social Security benefits at age 66, how will that impact my civil service pension?

This is an often-misunderstood situation. Receipt of your earned Social Security benefits would not have an affect on your monthly CSRS annuity. Only if you were a CSRS Offset employee when you retired would your annuity be reduced because of Social Security eligibility. That reduction would have been made by the Office of Personnel Management on your 62nd birthday. However, while your CSRS annuity would not be affected, your earned Social Security benefit would be reduced because you

are drawing an annuity based on earnings on which you did not pay Social Security taxes. This reduction is required under the Windfall Elimination Provision (WEP) of the Social Security laws.

Disability Benefits and Workers’ comp

I am on a regular civil service retirement from the federal government, and I am collecting Social Security Disability Insurance (SSDI) benefits. I recently underwent surgery for an old work-related injury, and I might be eligible for scheduled award benefits from the Office of Workers’ Compensation Programs (OWCP) under the Federal Employees’ Compensation Act. How would these OWCP benefits affect my SSDI benefits?

The law allows you to receive both OWCP scheduled award benefits and SSDI benefits, but the SSDI benefits may be reduced if the total amount of all the public disability benefits being received (OWCP and SSDI) exceeds 80 percent of your average monthly earnings at the time you became disabled.

Changing health plan after divorce

I am recently divorced, and the divorce decree specified my spouse would receive full survivor benefits. My question relates to my enrollment in the Federal Employees Health Benefits Program. I am w w w. n a r f e . o r g

Questions & Answers

self-only coverage at any time. In addition, divorce is considered a “qualifying life event,” and enrollees can make a change in coverage to another plan or option from 31 days prior to the event to 60 days after the event.

currently enrolled in Kaiser Permanente with self-and-family coverage. Since I am no longer married, I no longer need the family coverage. Will the Office of Personnel Management (OPM) automatically change me to a self-only enrollment, or do I need to contact them to make such a change?

Reconsideration of Annuity Possible?

No, OPM will not automatically change your enrollment from self-andfamily to self-only coverage when you file your divorce papers with OPM. You should call OPM at 888-767-6738 and ask to change your enrollment. As a retiree, you can change from self-and-family coverage to

I am the widowed spouse of a former Department of Veterans Affairs surgeon of about 35 years. My husband was diagnosed with Parkinson’s disease at age 65 when symptoms began to affect his ability to perform his surgical responsibilities. To my knowledge,

he was not offered disability retirement. Is it possible for his case to be reviewed, for the sake of his spouse (me) and his daughter? An additional consideration: His salary at retirement was about what new surgeons were being hired for at that time. His documented outstanding performance record could only be recognized during his last years with bonuses, and not wage increases, which did not have an effect on his retirement income.

Under the Civil Service Retirement System laws, an employee who retires on disability is awarded the larger of either the earned annuity

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Questions & Answers

NARFE at Your Service (based on actual years of service using the regular formula) or a guaranteed minimum benefit. The earned annuity is always larger if the employee was age 60 or older or had 21 years and 11 months of creditable service at retirement. From what you wrote, your husband was age 65 when he retired and had 35 years of federal service. Therefore, he would not have benefited monetarily from retiring on a disability retirement as opposed to a normal retirement. Unless you have documentation that would in some way change the formula used in the computation of his annuity, it is doubtful that the Office of Personnel Man-

ROC3137NARFEhalfAds.indd 4 aug 2 015

agement would honor a request to have his retirement case reviewed. The formula for retirement is based on years of creditable federal service and the average of the highest three years of salary that he earned. The address to write to make such a request is: Office of Personnel Management, Retirement Operations Center, PO Box 45, Boyers, PA 16017. To obtain an answer to a federal benefits question, NARFE members should call 703-838-7760 and ask for the Federal Benefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

NARFE service officers are available to answer questions and to assist in helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. For the nearest service officer, call NARFE (toll-free) at:

800-456-8410. NARFE Service Centers also are available in some areas. Use the Service Center listings on the NARFE website,

www. narfe.org.

4/15/14 1:28 PM

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The Pillow Was the Problem I bought every pillow on the market that promised to give me a better night’s sleep. No matter how many pillows I used, I couldn’t find one that worked and finally I decided to invent one myself. I began asking everyone I knew what qualities they’d like to see in their “perfect pillow”, and got many responses: “I’d like a pillow that never goes flat”, “I’d like my pillow to stay cool” and “I’d like a pillow that adjusts to me regardless of my sleep position.” After hearing everyone had the same problems that I did, I spent the next two years of my life inventing MyPillow.

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Cover Story

Dual-Status

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The federal employees in these hybrid civilian/military roles are a breed apart.

dward Konys, NARFEâ&#x20AC;&#x2122;s Region IV vice president, recalls attending a chapter meeting in Ohio several years ago when the discussion turned to recruit-

ing new NARFE members. Konys recalls pointing out that right across the road from where they were meeting were potentially hundreds of new members working at the Air National Guard base. The chapter members were clearly perplexed, recounts Konys, and wondered why he was suggesting that they recruit military personnel. What they did not realize, says Konys, a former deputy director of manpower for the U.S. Air Force Materiel Command at Wright-Patterson Air Force Base near Dayton, was that a very high percentage of the guardsmen they saw were civilian federal employees working as dual-status technicians (also called reserve techs). Dual-status technicians work as full-time federal civil service employees during

Illustration by Bill Pragluski, Critical Stages, LLC

the week and, on one or two weekends per month, serve as members of the National Guard or Reserves while attending unit training assemblies.

By David Tobenkin w w w. n a r f e . o r g

Dual-Status “The problem is that at such bases, National Guard or Reserve civilian workers wear uniforms, and our chapter people assume that they are military,” Konys says. “Yet there may be 300 to 400 dual-status technicians in an Air National Guard flying unit.” The knowledge gap, notes Konys, runs both ways. Working in a military environment, many dual-status technicians, who receive General Schedule or Wage Grade pay and many of the same Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) retirement benefits as other federal civil service employees, are unaware of NARFE’s role in fighting to preserve their civil service pay, benefits and due process rights. “Dual-status technicians face the same basic issues and should have the same advocacy,” Konys says. “They need to know what issues are confronting federal employees, what advocacy efforts are being undertaken and how they can participate.” However, while dual-status technicians are civil service employees, they face special pay and benefits challenges that make them a federal breed apart.

A BREED APART

There are a number of specialized employment niches in the federal workplace, but dual-status technicians may be among the most unusual. The approximately 50,000 dual-status technicians occupy a strange hybrid world in the military-civil service space. They are National Guard, U.S. Army and U.S. Air Force reservists but are also full-time civil service Department of Defense employees. Deployed nationwide, dual-status technicians perform functions that include equipment and weapons systems maintenance, computer and facility maintenance, and pay and benefits administration. In many cases, they train active duty personnel and other reservists who cannot devote a full workweek and years of their careers to mastering technical skills necessary to maintain a given weapon system or equipment item. While most are enlisted personnel, some are officers, including even a few generals. They generally work a 40-hour workweek as civilian employees and are required to perform reserve duty at least one

weekend a month and participate in at least two weeks of training per year. Like other reservists, they must serve in military operations abroad when called to duty. “Dual-status technicians tend to be more knowledgeable, experienced and cost-effective than their less-experienced and higher-paid active duty counterparts,” says Ben Banchs, business manager at the Laborers International Union of North America’s National Guard District Council. Dual-status technicians tend to have more years of military employment and, in particular, more time deployed on the same equipment in the same location for long periods, Banchs says. A former dual-status technician who maintained F-15 fighter jet aircraft full time for seven years, he says active duty personnel tend to not acquire the same level of skills because they are moved geographically and are assigned different duties. “The majority of folks fixing aircraft who are active duty are in their early 20s with four to six years of military experience and E-4 or E-5 ranks,” Banchs says. “Our folks are 15- to 25-year veterans with E-6 and E-7 ranks.” A 2008 study by think tank Rand Corporation, “Options for Meeting the Maintenance Demands of Active Associate Flying Units,” found that the Air National Guard, whose lynchpin full-time employees are dual-status technicians, was consistently able to generate more peacetime flying hours per fulltime-equivalent maintainer than was the active duty component of the U.S. Air Force – and in the case of the F-16 jet fighter aircraft, more than twice as many. There are two parts of the dual-status technician program – component reserve units of the Army and Air Force, which report to the management chains of those organizations, and Army and Air National Guards, which are organized and supervised by state officials.

SPECIAL CHALLENGES

When it comes to job protection, salary and benefits, they may have the worst of both the military and civil service worlds, contends Banchs. Topping the list of challenges is a lack of job protection. Like other reservists, dual-status technicians who serve 20 years are entitled to a military pension. The catch, however, is that pensions for reservists – including dual-status

Technicians technicians – only take effect at age 60 (though this age requirement may be reduced for certain combat zone service), not, as is the case for active duty personnel, whenever their 20 years of service ends. And the right to maintain their civil service jobs depends on their ongoing service in the reserves. That is, if they are discharged as reservists, they lose their right to their civil service jobs, including its salary, agency Thrift Savings Plan contributions and matches, and the possibility of an unreduced civil service retirement annuity. That becomes a very real issue after 20 years of service, when reservists become subject to annual evaluations to determine whether they should be retained as reservists for another year. Unlike federal civil service employees, they can – and have been – discharged without cause and for a wide variety of reasons, including advancement for more junior employees. But for many dual-status technicians, unlike other reservists with nonmilitary jobs, their narrow range of skill sets – such as a mechanic working only on an F-15 jet fighter aircraft for 20 years – frequent location at or around an isolated military facility and oftentimes lack of higher education mean that their employment prospects can be grim if they lose that civil service job. Keith Meade is a 44-year-old, dual-status technician employed by the Michigan Army National Guard as a production controller. He has deployed to combat operations in Iraq three times, including one where he severely damaged his knee after falling into a hole during a night patrol. In May, he received unwelcome news from his military supervisor: After nine years as a dual-status technician, 18 in the National Guard in total and 22 in the military overall, he would be asked to depart the reserves in October and would simultaneously lose his dual-status technician GS-9 position as well as his E-7 sergeant first class position. “I was dumbfounded, as I know I have far more military education and a higher rank than others who were retained,” says Meade, who notes that his production controller job involves little physical activity and, therefore, does not tax his damaged knee. “I haven’t decided yet whether to try to appeal the decision,” says Meade. “If I have to leave the National Guard, I’m not sure what I

will do. I was a rough carpenter prior to being deployed in 2003, but I’m not sure how well I can handle running around on a pitched roof with a busted knee. Here in Michigan, there is the U.S Army Tank and Automotive Command, so I could try to get a civilian job there. But there are no guarantees. The situation I and similar dual-status technicians face does bother me. I would like to see that if you serve 20 honorable years in the Armed Forces, you should be able to retire from the military and continue in your civilian technician position.”

A SYSTEM STACKED AGAINST THEM

“The way the system is set up is stacked against technicians,” says John M. Harris, president of the Enlisted Association of the National Guard of the United States. “The military side is not set up to accommodate them; rather, military retention measures have been set up to deal with those who stay in service too long, not realizing the effect it would have on those who would lose their civilian positions.” In addition, many dual-status technicians get a late start accruing civil service retirement eligibility. Because the dual-status technician program is not well known to many reservists and military personnel and is advertised through USAJOBS® posts that are unfamiliar to many in the military, many join the program late. Dual-status technicians also lack federal civil service protections and have narrower rights in addressing other issues, such as discrimination, retaliation and whistleblower suits, Banchs says. The U.S. Merit Systems Protection Board (MSPB) and the U.S. Office of Special Counsel (OSC) do not have jurisdiction over complaints by reserve techs, leading to an unfavorable work environment for many of them, says Banchs. “There is no third-party review of administrative actions taken against National Guard techs in civil service, not even whistleblower actions,” Banchs says. “With respect to both the MSPB and the OSC, the most they can do is render opinions with no enforcement under the law. The National Guard Bureau also believes that the EEOC has no jurisdiction over their employees, even if they are civil servants.” But against tough odds, some dual-status technician challenges to adverse workplace w w w. n a r f e . o r g

Dual-Status Technicians conditions and discrimination are successful. In 2012 and 2013, two dual-status technicians, Vikki Rouleau and Theresa Devine, received default judgments in their favor and against the National Guard Bureau after an EEOC administrative law judge held that the dual-status technicians had suffered sexual and reprisalbased discrimination. The EEOC administrative judge awarded Rouleau $231,425 in damages. “We secured a default judgment in their favor by demonstrating that dual-status technicians are civil service employees with civil service rights,” says Josh Bowers, a Silver Spring, MD-based attorney who represented Rouleau and Devine. While federal law does give state adjutants general the ultimate power to retain or let go dual-status technicians in the Army

Dual-status technicians also have faced all the downsides of being federal civil service employees in recent years. and Air National Guards, Bowers maintains that they retain many other rights, such as the right to organize in a union, and that some appellate court decisions have narrowed their due process rights based on insufficient factual records in those cases concerning the civilian nature of dual-status technicians. “They are not, as the National Guard would like to believe, equivalent to the full-time military, subject only to military rules,” Bowers says. There are other benefits issues of concern to dual-status technicians. Despite being reservists, because they are qualified to participate in the Federal Employees Health Benefits Program (FEHBP), they are not permitted to participate in the TRICARE Reserve Select (TRS) program, a health insurance benefit available to all other members of the National Guard and Reserve. Banchs says that the TRS premium is $200 per month for family coverage, in many cases 50 percent less than a similar FEHBP program. 26

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And despite being in the military, they do not qualify for retention and educational bonuses and other incentives given to some active duty personnel and reservists to re-enlist or stay in the service. “The government has taken the position that their ‘incentive’ is the right to continue to stay in their civil service jobs,” Banchs says. Dual-status technicians also have faced all the downsides of being federal civil service employees in recent years, including pay freezes and furloughs triggered by sequestration.

DUAL-STATUS POSITIVES

So why be a dual-status technician? There are upsides, Banchs notes. Dual-status technicians tend to move around less than those in active military service, which can be attractive to those with families. Too, “you can serve your country in both capacities, as a reservist and as a civil service employee,” Banchs says. “When I was out there, I loved being able to work on aircraft full time. And the problems with the program are problems that could be fixed.” In addition, dual-status technicians can receive two pensions, one as reservists after 20 years and another for their civil service duty under standard age and length of service requirements, but they must qualify for each individually. There is a mandatory retirement age of 60 for reservists. Dual-status technicians under the CSRS are subject to the Windfall Elimination Provision (WEP), save for those who are legal permanent residents in a state in the federal judicial Eighth Circuit (Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), who were held exempt from the WEP under a 2011 U.S. Court of Appeals for the Eighth Circuit decision, Petersen v. Astrue, 633 F.3d 633 (8th Cir. 2011).

A LEGISLATIVE FIX?

A series of legislative fixes aimed at addressing the benefits challenges of dual-status technicians have been introduced over the past several years but have died in Congress each time. Legislation introduced in 2014 by Sen. Jack Reed, D-RI, the National Guard Technician Equity Act (S. 2312), would have addressed the job security issue by allowing dual-status technicians to convert to nondual status (full civil service without a reserve requirement) after 20 years of credit-

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Dual-Status Technicians able technician service and would have exempted technicians from being considered for involuntary separation by the Army/Air Force’s qualitative selection/retention board process. The bill also would have extended dual-status technicians the same due process rights afforded to other federal employees under the law to seek an appeal of an adverse personnel action directly related to their duties as civilian employees. The bill did not face significant opposition, Banchs says, and with many veterans in their ranks, dual-status technicians are a sympathetic class of employees for both major parties. Rather, the bill’s failure to pass reflects the dim prospects of any bill on Capitol Hill these days, particularly for a small class of employees such as dual-status technicians, he says. Changes in the National Guard itself also could help address at least some of these issues. One proposal discussed by a Military Compensation Retirement Modernization Commission

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report released in January would allow reservists, including dual-status technicians, to begin receiving a reduced annuity prior to age 60.

AN UNTAPPED MEMBER POOL

For NARFE chapter leaders reaching out to dualstatus technicians, Konys recommends that they contact the National Guard state headquarters public affairs office or the unit public affairs office. “If they talk to the unit public affairs people, they might get the opportunity to make a presentation,” he says. “They are not allowed to recruit, but they could present federal pay and benefits issues NARFE is working on.” The NARFE representatives may find audiences receptive to joining. “I was not aware of NARFE prior to now,” says Meade. “It would be something I would consider becoming a member of.” —David Tobenkin is a freelance writer based in the greater Washington, DC, area.

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Changes Coming to the

Combined Federal Campaign New methods of giving and expanded options make it easier for federal employees and retirees to participate.

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By Everett A. Chasen

or more than a half century, the Combined Federal Campaign (CFC) has been a leading force in American philanthropy. According to the Office of Personnel Management

(OPM), the CFC is the world’s largest and most successful annual workplace charity campaign. With this year’s campaign, the venerable appeal is preparing to implement some structural changes aimed at ramping up giving. Nearly 150 CFC campaigns throughout the nation and overseas raise hundreds of millions of dollars each year to support eligible nonprofit organizations that provide health and human service benefits throughout the world. The CFC is managed by OPM, which is responsible for ensuring the campaign is effectively and efficiently administered and that all campaign components meet federal regulations and requirements. OPM works closely with Local Federal Coordinating Committees (LFCCs), such as the Combined Federal Campaign of the National Capital Area. LFCCs act as the CFC’s “board of directors” and have direct oversight of the finances and conduct of campaigns in their communities. The CFC’s mission is to promote and support philanthropy that is employee focused, cost-efficient and effective in providing federal employees and retirees the opportunity to improve the quality of life for all. Its origins can be traced to 1961, when President John F. Kennedy signed Executive Order 10927, authorizing the U.S. Civil Service Commission to

combined federal campaign

develop guidelines and regulate fundraising in the federal service. The campaign replaced what OPM has called an “uncontrolled free-for-all” relating to on-thejob fundraising in the federal workplace. Employees in the 1940s and earlier were not permitted to designate the charities to which they wanted their donations to go, quotas were established for agencies and individuals, and supervisors pressured employees to give. According to OPM, “in many cases, employees donated their pocket change.”

TODAY’S CFC

The CFC of today has been called “the most inclusive workplace giving campaign in the world.” About 24,000 nonprofit charitable organizations participate worldwide, ranging from small community groups to large well-known charities. In recent years, however, CFC donations have steadily decreased. Between the 2012 campaign and the 2013 campaign, giving decreased by 19 percent, from $258.3 million to $209 million; and 2012 had shown a 5.3 percent decline from 2011. In addition, participation declined by 23 percent – from 848,000 federal workers, retirees and government contractors to 650,000. The 2013 total pledged was the lowest level in 15 years, and that total decreased again in 2014 to $193.2 million, an additional 7.6 percent decline. The number of participants decreased again in 2014, to a little more than 568,000, although the average gift from individuals increased from $322 per contributor in 2013 to $340 in 2014. In response to the lower giving levels, Keith Willingham, the CFC’s director, notes: “The CFC is a purely voluntary program. Over its history, there have been increases and decreases in giving depending on the economy, federal employment trends and employee morale. There have been few structural changes in terms of how it operates – until now.” When the CFC celebrated its 50th anniversary in 2011, OPM Director John Berry established a federal advisory commission, known as CFC-50, to study ways to strengthen and invigorate the campaign so that it could continue for another 50 years. The committee, chaired by former U.S. Reps. Thomas M. Davis, R-VA, and Beverly Byron, D-MD, included a diverse group of federal employees, industry leaders, advocacy groups and chari32

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ties. Then-NARFE National President Joseph A. Beaudoin was a participant. The CFC-50 commission called recent drops in the pledge total “cause for concern,” and said that the program “is facing important challenges.” The commission provided recommendations for change in a report to OPM, which was issued in 2012. (Read the report at www. opm.gov/combined-federal-campaign/cfc-50commission/2012-report.pdf.) CFC staff received more than a thousand comments on proposed rule changes needed to implement those recommendations, all of which were “considered closely” before final changes to the program rules were announced in the Federal Register on April 16, 2014. Most of those changes will take effect in the 2016 campaign.

CHANGES FOR CFC PARTICIPANTS

Among the changes to take place in 2016 include giving OPM’s director the authority to annually set the dates for the campaign period. The CFC-50 commission had recommended the solicitation period be expanded into January to give donors the opportunity to contribute after the holidays. Many comments to the draft regulations, however, asked that the period not be lengthened, and OPM agreed with those comments. The resulting rule gives the director the flexibility to determine the solicitation period from year to year based on input from the CFC’s stakeholders; but the campaign period cannot start before September 1 or end later than January 15. Cash contributions to the CFC will be eliminated as the campaign moves toward increased use of electronic giving and processing. Automation has allowed the CFC to expand donor giving options and has increased donors’ access to information. In 2016, according to OPM, all participants will have access to an online giving option, such as the CFC Nexus program (www.cfcnexus.org). In past years, donors could give only to local charities – those participating in their official duty station. The CFC-50 commission found that “many donors ... would like to donate to local charities in other locations, such as in their home town[s].” At present, it said, the only way for donors to do that is to make donations outside the CFC. In response, the CFC has implemented “universal giving,” which makes it possible for donors to

contribute to any qualified CFC charity, regardless of where the donor lives. The program – launched during the 2014 campaign season – allows federal employees to donate to any registered charitable organization nationwide. An online search feature, found at https://apps3.opm.gov/CFC/Charity Search/Main.jsp, enables donors to search by charity name, keyword or tax code. Besides giving donors additional giving options, providing them with the option to give online has reduced processing time and data entry errors, and has cut the costs of administering the campaign. CFC has found that local campaigns that provided donors with online giving access in 2012 received less than 10 percent of their donations in cash. CFC will continue to provide paper lists of participating charities and paper pledge forms to potential donors through 2020; after that, those documents will be made available only through electronic means. According to the CFC, this will reduce campaign costs and the CFC’s carbon footprint. CFC also will be changing the role of LFCCs. Instead of focusing on financial oversight, LFCCs will now focus on promoting the campaign and getting federal employees engaged in participation. They also will review applications from charities to participate in the program and will find outreach coordinators and fundraisers in the areas they serve. OPM will be introducing educational programs that will “allow employees to interact with charities and their beneficiaries to find out about how CFC contributions can make a real impact in people’s lives,” wrote OPM Director Katherine Archuleta on the agency’s website. OPM also will be providing an online application system for charities that wish to participate in the CFC and will be streamlining its pledge processing system to reduce administrative costs.

RETIREE OPTIONS

According to CFC director Willingham, “federal employees have always demonstrated a commitment to helping others, and since 1961 the CFC is one of the ways they have done so. Surveys show that that commitment does not end when the individual retires.” The CFC-50 commission recommended increased involvement for federal retirees in the

CFC process. In its work, the commission relied on a survey conducted by NARFE. The NARFE membership survey found that nearly 77 percent of survey respondents (11,011 of 14,344) had contributed to CFC while they were federal employees, and that if OPM allowed retirees to contribute to CFC through automatic deductions from their annuities, more than 24 percent (3,487 of 14,348) would do so. NARFE’s survey also found that 2,430 of those who were interested in contributing to the CFC through automatic annuity deductions would choose to have those deductions applied monthly, while 832 preferred annual deductions. Though the CFC will not now be offering retirees the option to contribute to the campaign through automatic annuity deductions, they are now free to give to any qualified charity on the “universal giving” list, regardless of where they live. “It is important that federal retirees stay informed of their options to give through the CFC,” says Willingham. “Those who are interested should contact their local CFC office for more information on how to make a contribution to any of the more than 20,000 charities participating in the program.” Retirees can find information on how to contact their local CFC offices at www.opm. gov/cfc/Search/Locator.asp.

OTHER STEPS to boost participation

In anticipation of the 2014 campaign, OPM director Archuleta asked for agencies’ help in ensuring the success of the CFC appeal. “Time and again,” she wrote, “we have seen that CFC results are stronger when there is clear and strong support from leadership. Your actions will go a long way

Retirees are now free to give to any qualified charity on the “universal giving” list. w w w. n a r f e . o r g

combined federal campaign

toward ensuring the campaign’s success within your department or agency.” Archuleta urged agency heads to remind their staff they should donate to CFC because payroll deduction allows contributions to be spread across an entire year, and CFC pledges give charities steady sources of revenue throughout the year. She also argued that CFC is convenient for employees – especially with the new online pledge option – and provides them with tax records. She noted that participation in the program shows all Americans that federal employees care about the communities in which they live. Archuleta asked that federal leaders allow their employees to serve as CFC loaned executives, coordinators and key workers during the campaign. She also asked the department and agency heads to encourage their employees to serve on LFCCs, in volunteer positions for which they should not have to be placed on leave in order to administer the program within their agencies.

Finally, she asked that managers consider holding several charity fairs at their locations throughout the duration of the campaign. “These give federal employees the opportunity to learn more about the participating charities directly from representatives of these organizations,” she wrote. “We have found this to be one of the most effective ways to engage potential donors.” The CFC hopes that the changes to the program will increase the number and amount of pledges that are made, among both employees and retirees. “The new rules will dramatically change how the program operates,” says Willingham. “The streamlined infrastructure will reduce administrative costs while providing donors and charities more transparency into the process. We believe the changes will make the program more attractive.” —Everett A. (Ev) Chasen is a retired federal employee and a regular contributor to NARFE magazine.

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Managing Money

you Don’t Need trusts to Avoid Probate

recent column of mine discussed revocable living trusts and how they may ensure control and privacy of your estate (narfe, June, p. 42).

If you’re not looking to control assets from the grave, and your objective is simply to avoid probate to make life easier for executors and beneficiaries, there are alternatives to trust-based estate plans that you may find useful. In fact, with the strategies discussed here, you can minimize (and in many cases eliminate altogether) the impact of probate without shelling out thousands of dollars on attorney fees. As you recall from my previous column, probate is the court-supervised process an estate goes through to manage, settle and distribute property according to the terms of a will. For starters, make sure your retirement plans, life insurance policies and annuity contracts have a designated primary and contingent beneficiary, as these assets will transfer to the named beneficiary without probate upon your death. Here’s where it gets interesting: It is also possible to set up nonretirement assets, such as bank accounts, brokerage accounts and mutual fund accounts, which are typically probate assets, so that they, too, will transfer outside of probate. This may be accomplished through the use of payable on death (POD) and transfer on death (TOD) registrations, 36

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which, for all intents and purposes, work very much like beneficiary designations on life insurance and retirement accounts. These registrations are sometimes referred to as a “poor man’s trust” because there is little to no cost, and they provide the benefit of avoiding probate. PODs are available for bank assets, such as checking accounts, savings accounts and certificates of deposit. TODs are used for transferring investment accounts, such as stock and bond accounts, brokerage accounts and mutual fund accounts, to designated beneficiaries. To add a POD or TOD registration to an account, simply notify your financial institution and complete the necessary paperwork. Upon your death, the beneficiary will simply provide the financial institution with a

By Mark A. Keen,

CFP®

certified copy of your death certificate, along with proof of his or her identity, and the assets will be transferred accordingly. (Note: TOD registrations are available in every state except Louisiana and Texas.) Unlike adding a son or daughter as a joint owner (which I strongly discourage for multiple reasons), adding a beneficiary via a POD or TOD registration in no way relinquishes or transfers ownership rights of the account. Furthermore, the beneficiary on a POD and TOD account may be changed or revoked at any time, or the account may be spent down or closed. POD and TOD designations provide no asset protection (i.e., the account is subject to claims from creditors or other liabilities such as child support or spousal support). If you wish to name someone other than your spouse as beneficiary, it’s advisable to obtain your spouse’s consent in writing to avoid possible spousal claims. For instance, in community property states, a spouse would be considered half owner and could claim half of the account unless he or she previously consented to the POD or TOD designation. Through the use of POD and TOD designations, it’s possible to have virtually all financial assets pass to beneficiaries without going through probate. But what about homes and oth-

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

er real estate property? Fortunately, 25 states now permit the use of TOD deeds, making it possible to pass real property outside of probate. If your state doesn’t allow them now, keep checking. (My home state of Virginia didn’t allow them until 2013.) Similar to a TOD on financial assets, a TOD deed transfers real estate to a designated beneficiary without relinquishing any control of the property until death, at which time ownership is transferred

to the beneficiary, along with any mortgage or debt on the property. Best of all, the delay and expense of probate is avoided, and the only legal costs likely would be attorney fees associated with drafting and filing the TOD deed. If you are interested in any of these “simple trust” alternatives, be sure to research your state regulations as well as any rules your financial institution may have. This is important because rules vary from state to state and financial institution to financial institution. Through the use of POD and TOD designations, it’s possible to facilitate the simple transfer of assets to your heirs without the hassle of probate and the cost of a trust. 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

Meeting governors and state legislators

ewer than 10 state legislatures are still in session. Most legislators have returned to their districts to resume jobs put on hold when they needed to be in the capital. This is an opportunity for each NARFE member, but especially for federation, district and chapter officers, who should consider coordinating NARFE-member meetings with state legislators. Getting to know state legislators early in their careers is important. Part of the high turnover in state legislatures is attributable to legislators’ ambition for higher office. Half the members of the current Congress are former state legislators or governors (see Resources #1).

Legislative Action Center Use the tools in the upgraded NARFE Legislative Action Center at www.narfe.org to find all your elected officials. Chapter presidents and program officers should invite legislators to speak at chapter meetings and take questions from their NARFE constituents. Meetings with legislative leaders (#2) are particularly useful.

Key gubernatorial staff should be sought out to meet with federation executive boards and take NARFE legislative concerns to the governor. Remember, elections are like hearing aids – they help voters be heard. Three states, Kentucky, Louisiana and Mississippi, conduct gubernatorial elections in 2015, and 11 more do so in 2016 (#5).

Governors The entire federal family of each state gets to vote in gubernatorial elections. NARFE’s Protect America’s Heartbeat (PAH) Toolkit (#3) shows how many current and retired federal employees live in each state. Harness the size of this substantial constituency. Use webforms on gubernatorial websites and the list of chiefs of staff and schedulers (#4) to invite your governor to address a future federation convention.

Face-to-Face Meetings Meeting legislators and governors face to face is crucial to our mission as advocates. We are fooled if we think any amount of electronic communication can substitute. Planting human relationships begins with a handshake. Nourishing these relationships takes planning and persistence. While others rest, officers at the top of NARFE hierarchies – chapters, districts and federations – must take the lead in forming

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By Christopher Farrell, senior analyst

and growing relationships with those in elected office. Resources To find the resources referenced, use the following links. For those without Internet access, contact the author by phone at 571483-1265 or by mail at 606 N. Washington St., Alexandria, VA 22314-1914. #1 State legislatures produce most members of Congress: www.ncsl.org/Portals /1/Documents/statefed/ FSL_114th_1-21-15.pdf. #2 Leaders of legislative chambers are listed by state: www.ncsl.org/legislatorsstaff/legislators/legislativeleaders/2015-state-legislativeleaders.aspx. #3 NARFE’s PAH Toolkit shows the size of the federal family by state: www.narfe.org/ heartbeat/states.cfm. #4 Stateside Associates produces an updated list of chiefs of staff and schedulers: www.stateside. com/wp-content/uploads/2015Governors-Chiefs-of-Staff-andSchedulers-FactPad-Insert.pdf; see also: links to your legislature’s and governor’s websites from the NARFE Insider: www.narfe.org/ pdf/narfe_insider_0415.pdf (see pp. 9-10). #5 The Center for Politics at the University of Virginia covers gubernatorial elections: http:// www.centerforpolitics.org/ crystalball/2016-governor/.

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Beltone is an independent company providing discounts on hearing aids.

Plus, you also enjoy the BelCare™ aftercare plan for ongoing care and service at over 1,500 locations nationwide.

Call Beltone at 1-888-418-6763 to schedule your complimentary hearing screening, today! *The insured may need to submit for reimbursement. State and/or local taxes may apply. Prices and products subject to change. Blue Cross and Blue Shield Service Benefit Plan will pay a hearing aid benefit up to $2,500 every 3 calendar years for adults age 22 and over, and up to a $2,500 total per calendar 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 your Service Benefit Plan benefits first. To find out what is covered under your policy, contact the Service Benefit Plan. The products and services described herein are neither offered not guaranteed under any local Blue company’s contract with the Medicare program. In addition, these items are not subject to the Medicare appeals process. Any disputes regarding these products and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, BCBSA, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time. Blue Cross and Blue Shield Association is an association of independent, locally operated Blue Cross and Blue Shield Companies. State and local taxes and/or fees may apply. Available at participating locations until September 30, 2015.

jun

G FUND

F FUND

C FUND

S FUND

I FUND

1 Month

0.17%

-1.07%

-1.93%

-0.71%

-2.80%

YTD

0.96%

0.05%

1.26%

4.96%

6.52%

1 year

2.09%

2.32%

7.50%

6.53%

-3.95%

3 year*

1.94%

2.26%

17.36%

19.34%

12.29%

5 year*

2.05%

3.65%

17.39%

18.46%

10.12%

10 year*

3.07%

4.64%

7.94%

9.74%

5.35%

*Annualized

Ten-year Treasury yields rose by 0.23 percent in June as the U.S. economy continued to show strength, pushing the F Fund to its largest loss in 12 months. The I Fund fell, driven by concerns over Greek default and falling Chinese stocks, although the dollar’s weakness mitigated the loss for U.S. investors. The C and S Funds fell due to concerns of a global slowdown affecting U.S. economic growth, with large multinational companies in the C Fund falling more than smaller U.S.-focused firms in the S Fund.

JUN

—BY Ravindra Deo, Chief Investment Officer, Thrift Savings Plan L INCOME

L 2020

L 2030

L 2040

L 2050

-0.33%

-0.97%

-1.28%

-1.46%

-1.66%

YTD

1.39%

2.24%

2.63%

2.91%

3.22%

1 Year

2.68%

3.15%

3.45%

3.68%

3.69%

3 year*

4.83%

9.50%

11.56%

13.07%

14.46%

5 year*

4.96%

9.61%

11.50%

12.89%

N/A

1 Month

*Annualized

THIS CHART is provided as a service to NARFE members who enrolled in the Thrift Savings Plan (TSP) 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. Source: TSP 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.)

OPM Retirement Claims Processing status

Countdown to cola

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.60 percent in May. To calculate the 2016 cost-of-living adjustment (COLA), the indices of July, August and September 2015 will be averaged and compared with the 2014 third-quarter average of 234.242. The percentage increase, if any, determines the COLA. May’s index, 232.908, is down 0.57 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. May’s index is 1.30 percent higher than the December 2014 base index of 229.909. 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.

‘14

Month

Monthly % Change

% Change from 234.242

Claims Processed

Inventory

% Processed in 60 days or less

October 2014

233.229

-0.40

-0.43

November

231.551

-0.72

-1.15

4,077

6,477

11,669

83.7%

December

229.909

-0.71

-1.85

18,629

7,662

22,636

80.2%

January 2015

228.294

-0.70

-2.54

229.421

+0.50

-2.06

DECEMBER FEBRUARY

9,219

7,841

24,014

80.6%

February

MARCH

5,478

8,898

20,594

81.6%

March

231.055

+0.71

-1.36

72.6%

April

231.520

+0.20

-1.16

May

232.908

+0.60

-0.57

APRIL

6,292

MAY

7,845

8,660 10,697

18,226 15,374

68.0%

THIS CHART tracks progress by the Office of Personnel Management (OPM) in reducing its backlog of retirement claims. For data going back to October 2013, and for an update of the number of new retirement cases OPM receives each month by agency and the percent of cases with errors that it returns to those agencies, go to www.opm. gov/retirement-services/. 40

CPI-W

New Claims Received

JANUARY 2015

For the Record

Most TSP Funds dip amid U.S. strength, global worries

Thrift savings Plan fund returns

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June July August September

Donate to NARFE Programs Support Alzheimer’s Research

Your charitable contribution is tax-deductible to the fullest extent allowed by law.

Write your chapter number on check; make it payable to: NARFE-Alzheimer’s Research

Enclosed is my NARFE-Alzheimer’s contribution: $ Every cent that is contributed is used for research. Please circle: Mr. Mrs. Miss Ms. and mail to: Name: Alzheimer’s Association Address: 225 N. Michigan Ave., 17th Floor City: State: ZIP: Chicago, IL 60601-7633 Chapter Number: Credit Card Information: MasterCard VISA NARFE members contributed for If you have any questions, write to: Discover AMEX Alzheimer’s research: $12 Million Fund National Committee Chair Card Number: Merv Stuckey, 2272 E. Buster Mountain Dr. Expiration Date: (mm)/ (yy) Oro Valley, AZ 85755-4709 *Total as of May 31, 2015 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) Email: narferoadrunner@comcast.net

$11,369,939* Alzheimer’s research.

Signature

Join the Silver CIrcle Clip this contribution form and mail to: NARFE Silver Circle, 606 N. Washington St. Alexandria, VA 22314

•For a contribution of $25 or more, you will receive a Silver Circle pin, and your name will be listed in narfe magazine with other contributors. •For a contribution of $1,000 or more, your name will be placed on the “Wall of Fame” at NARFE Headquarters.

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

Enclosed is my Silver Circle contribution: $ ID # (ID # may be found on your narfe magazine label or your NARFE membership card)

Name: Address: City: Silver Circle contributions are NOT deductible for federal income tax purposes.

Installment Plan Wall of Fame 12-month installment plan

Give to the Scholarship and Disaster Funds

Please mail coupon and check to: FEEA 3333 S. Wadsworth Blvd., Suite 300 Lakewood, CO 80227

All donations go to the NARFE General Fund to support NARFE programs and operations.

State:

ZIP:

My check is enclosed

(Please make check payable to NARFE Silver Circle.)

Please charge my credit card Card type MasterCard VISA Discover AMEX Card Number: Expiration Date: (mm)/ (yy) Name: (please print)

Signature

Make check payable to: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund.

Date

YES!

Date

I would like to help with my contribution.

Please check appropriate box(es). To make credit card contributions, call 800-338-0755. Scholarships are available to children, grandchildren and great-grandchildren of federal civilian retirees and current federal employees who are NARFE members. NARFE-FEEA Disaster Fund

Amount: $

NARFE-FEEA Scholarship Fund

Amount: $

Name: Address: City:

State:

ZIP:

NARFE News

Check out the blog

Is Self + one right for you?

elf-plus-one is coming! NARFE members should be aware that a self-plusone option will be offered in the Federal Employees Health Benefits Program (FEHBP) during this year’s Federal Benefits Open Season. It could mean significant savings for members who can take advantage of the new enrollment type. Many NARFE members have long sought to have the self-plusone option available. The Office of Personnel Management (OPM) estimates that approximately 30 percent of current enrollments in the Federal Employees Health Benefits Program are in self-and-family enrollments with only one family member. “Thus, there may be as many as one million changes to the self-

plus-one enrollment type,” John O’Brien, OPM director of health care and insurance, informed agencies. Premiums. NARFE will provide information to members on self-plus-one premiums as soon as it is available to the Association. FEHBP premiums appear in the November and December issues of narfe magazine. OPM gave some insights into the program in March when it issued its annual “call letter” to the health insurance companies participating in the FEHBP. OPM told the companies that the cost for the new self-plus-one option must be no more than those for a selfand-family option. Specifically, OPM said, “We expect proposals for self-plus-one rates to be lower than self-and-family rates. In no

event can self-plus-one rates be higher than self-and-family rates.” The dates for the Federal Benefits Open Season this year are November 9-December 14. Enrollment changes made in the upcoming Open Season are effective in January 2016.

more data ‘for the record’

by OPM, the number of claims processed, the claims inventory remaining at the end of the month and the percentage of claims processed in 60 days or less. Changed! TSP Chart. Our chart with returns for Thrift Savings Plan (TSP) funds has changed. Instead of reporting 12 months of monthly returns, the new chart lists the latest monthly return plus yearly returns for the past one year, three years, five years and 10 years (for the five core funds only).

“A long-term return provides an investor a more digestible means of comparing funds than a series of monthly returns,” says Ravindra Deo, TSP’s chief investment officer, who suggested the change to narfe. “It also provides a good context for fees and for gains relative to inflation,” Deo adds. “Since the TSP is meant for retirement over one’s life span, no participant, even one who is retired, should base their investment decisions on data that focuses on monthly returns.”

As of this issue, narfe magazine’s “For the Record” page has changed to provide additional data. New! Claims Processing Chart. A new chart tracks progress made by the Office of Personnel Management (OPM) in reducing its backlog of retirement claims. For each of the last six months, the chart shows the number of retirement claims received

NARFE has launched a blog to facilitate member-to-member communication. To read the blog, go to www.narfe.org, log in and click on NARFE Blog at the top of the page. To post to the blog, members must create an account with an email address and password. The blog complies with a resolution passed at the 2014 National Convention.

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calling all NARFE Photographers

NARFE’s annual photo contest begins August 1. Winning photos will be showcased in the 2017 Photo Contest Calendar. Deadline for submission of photos is March 15, 2016. For details, go to www.narfe.org, log in and click on Special Programs, or call 703-838-7760 and ask for the Marketing Department.

Active and Retired Federal Employees ...

JOIN NARFE TODAY!

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

Who Should Join?

Three Easy Ways To Join 1. 2. 3.

N A R F E M E M B E R S H I P A P P L I C AT I O N n YES. I want to join NARFE. n Mr. n Mrs. n Miss n Ms. Full Name ________________________________________ Street Address ____________________________________ Apt./Unit ________________________________________

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

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

n Please enroll my spouse

City _______________________ State _____ zIp ________

Spouse’s Full Name ________________________________

phone (__________) _______________________________

Spouse’s Email ____________________________________

Email____________________________________________

NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties without your express permission.

Choose Your Membership Type o Local Chapter Close-to-Home Membership – $40* Affiliation with the NARFE chapter closest to your home. Receive narfe magazine each month; attend meetings, often with invited speakers; network; and get involved in grass-roots lobbying efforts. Chapter Affiliation: Chapter # __ __ __ __(if known, otherwise enroll me in the chapter closest to my zIp code). *First-year dues. Subsequent years, $40 plus local chapter dues.

o eNARFE Chapter Online Membership – $40 NARFE’s electronic chapter. Receive narfe magazine by mail each month, and all other communications by email and on eNARFE.org. Get important updates and legislative action alerts, and have access to the eNARFE blog. Including email address strongly recommended.

Total Dues $40 First-Year Dues X __________ = __________ per person # Enrolling Total Dues

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

yyyy

Name on Card _________________________________ Signature _____________________________________ Date _________________________________________ MAY WE THANK SOMEONE? If applicable, please provide the name, membership and chapter number of the member who introduced you to NARFE: Recruiter’s Name __________________________________ Recruiter’s Membership ID __________________________ Recruiter’s Chapter Number _________________________

MAIL THIS APPLICATION TO NARFE Member Records / 606 N. Washington St. / Alexandria, VA 22314-1914

NARFE’s Dues Withholding Program What is dues withholding? It is a dues-payment method that gives NARFE members (retirees) the option of having their annual NARFE membership dues deducted from their annuities on a monthly basis. How does it work? One-twelfth of your total dues is automatically deducted from your monthly annuity. Your monthly deduction is determined by the following formula: (National dues ÷ 12) + (Chapter dues ÷ 12) = Total Monthly Deduction

Advantages • Save 15% off your annual membership dues! • Sign up your spouse and double your savings! • You’ll never get another dues reminder from us! • Your monthly payment is affordable and convenient! • You may cancel your dues withholding at any time! Application process It takes 60-90 days to process your application. Once the process is complete, you will receive a special membership card distinguishing you as a NARFE dues-withholding member.

To learn more about dues withholding, call 800-627-3394. Retirees, spouses of retirees and annuitant survivors are eligible for dues withholding.

NARFE Dues Withholding Application for Retirees n YES. I want to enroll in NARFE’s Dues Withholding Program (Annual dues of $34 plus Chapter dues of record to be withheld annually.) Social Security Number (9-digit number)

–

Civil Service Annuity Number

–

C S

–

(Include prefix, CSA or CSF) (Include any applicable suffix)

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

NARFE MEMBERSHIP INFORMATION

Street Address ___________________________________

NARFE Membership ID ____________________________________

Apt./Unit________________________________________

NARFE Chapter Number____________________________________

City _________________________ State _____ ZIP _____

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

Phone (__________) ______________________________ Email ___________________________________________ Date of Birth _________ /_________ / ____________________ dd

yyyy

Withheld From My Annuity. (Additional annual dues of $34 plus Chapter dues of record to be withheld annually.) If YES, enter spouse’s information below. Spouse’s Name ___________________________________________ Spouse’s Membership ID ___________________________________

AUTHORIZATION (Withholding will begin in 60-90 days). No payment should be forwarded with application. I authorize the United States Office of Personnel Management to make appropriate deductions from my annuity payments, not to exceed the amount certified by the National Active and Retired Federal Employees Association as the amount of dues for which I am annually obligated, in accordance with elections I make below, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I make below: Please allow 60-90 days for processing.

I understand that this authorization shall be valid until NARFE receives and processes my written notice of cancellation in accordance with its agreement with the Office of Personnel Management and that any disputes regarding this authorization shall be a matter between NARFE and myself. I hold the Office of Personnel Management harmless for any erroneous allotment deduction made pursuant to this authorization. ___________________________________________________________________________ _______________________________

Signature of Annuitant or Survivor-Annuitant

Date

Dues payments and gifts or contributions to NARFE are not deductible as charitable contributions for federal income tax purposes. MAIL THIS FORM TO: NARFE, ATTN: Member Records, 606 N. Washington St., Alexandria, VA 22314-1914 www.narfe.org 800-627-3394 rr@narfe.org Do not send money with this form

DW-2 (08/12)

Discovered: The Coin That Never Was!

America’s Lost Masterpiece The $100 Union

Original sketches found at the Smithsonian Imagine that you were examining artifacts in the Smithsonian Institution and you found a never-seen-before sketch for the largest and highest denomination American coin ever proposed. That’s precisely what happened when a coin expert was exploring the collection at this celebrated public institution not long ago. To his own surprise, the numismatist found the original-design concept for a one hundred dollar denomination created by George T. Morgan, arguably the greatest American coin designer. These sketches, hidden within an original sketchbook for nearly a century, represent perhaps the grandest American coin ever proposed—the $100 Union®.

This is not a reproduction… this is the first-time ever Morgan $100 Union design struck as a silver proof.

George T. Morgan will always be remembered for his most famous coin, the Morgan Silver Dollar. Until recently, the world knew nothing of Morgan’s larger and higher denomination $100 Union concept design. The secret’s out! For a limited time, you can secure the world’s first and only $100 Union Proof struck in pure .999 silver at our special price of only $99 (plus s&h). Call today!

Smithsonian®

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Prices and availability subject to change without notice. NOTE: GovMint.com® is a private distributor of worldwide government coin and currency issues and privately issued licensed collectibles and is not affiliated with the United States government. Facts and figures deemed accurate as of March 2015. ©2015 GovMint.com.

Member Perks

SAVE MONEY WITH NARFE Perks NARFE appreciates your service, and so do businesses across the country. Whether you are planning your next vacation or planning for retirement, members can save money on everyday purchases, thanks to our Affinity Partners. It’s just one more way we’re able to say “thank you” for being a NARFE member.

finance

NARFE Premier Federal Credit Union 800-328-1500 www.NARFEpremierfcu.org As a member of NARFE, you are eligible to join NARFE Premier Federal Credit Union, serving active and retired federal employees and their families since 1935. The credit union puts members first by offering lowrate loans, a high-interest checking account, the latest in technology including mobile banking and the ability to deposit a check from your smart phone! NARFE Premier FCU’s Online Banking and Bill Pay is secure, fast and very user friendly. The credit union offers members nationwide access to more than 5,000 shared branches and 56,000 surcharge-free ATMs. Accounts are insured by NCUA up to $250,000. Fo r m o re i n f o r m a t i o n , c a l l 800.328.1500, email jparish@ narfepremierfcu.org or visit www. narfepremierfcu.org..

insurance

NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed and administered by Mercer Consumer, a service of Mercer Health & Benefits Administration LLC, exclusively for NARFE members: senior age whole life, term life, Medicare supplements, hospital income plan, short-term recovery insurance, pet insurance, accidental death and dismemberment, cancer

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care, enhanced dental insurance and long-term care.

GEICO 800-368-2734 National partner GEICO continues to offer a special discount for members of NARFE. To find out how much you could save, visit www.geico.com/fed/ narfe or call 1-800-368-2734 and mention that you are a NARFE member. Have your current coverage information available in order to secure a comparable quote. On top of a great discount, your completed quote will help benefit NARFE’s causes and initiatives!

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, charitable donations 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 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.

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®.

travel

Choice Hotels International 800-258-2847 www.choicehotels.com With 6,200 hotels in the United States

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

Rental. To make a reservation call National Car Rental at 1-800-CARRENT® and reference Contract ID 5282909. For complete terms and conditions, visit www.narfe.org/ memberperks.

experience. Call Angela and mention you are a NARFE member to start the moving process.

emergency services

Alamo Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call 800-331-1441 and mention ID# A991900. For complete terms and conditions, visit www.narfe. org/memberperks.

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 international moves with competitive pricing and quality service. Please mention you are a NARFE member and ask for Todd.

Wheaton World Wide Moving 800-248-7960 www.narfe@wvlcorp.com At Wheaton, we know interstate relocating is much more than trucks and boxes. Moving is not simply an address change. It’s a life change. With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation. We offer you, as a NARFE member, benefits to help you have a positive interstate relocation

MASA Assist 800-423-3226 Medical Air Services Association has been the industry leader in prepaid emergency assistance services for more than 40 years. NARFE members have experienced MASA Assist’s “peace of mind” services since 2001. Now NARFE members are entitled to even more benefits: air ambulance transportation, helicopter transportation, ground ambulance, vehicle return, mortal remains transport, and much more! Call MASA Today. It Could Save Your Life!

Wellness

Beltone Hearing Care 888-418-6763 Beltone has been helping the world hear better for 75 years. NARFE members with Blue Cross Blue Shield Service Benefit Plan insurance coverage may be eligible for two Beltone True 3™ hearing aids for ZERO out-ofpocket. Call 1-888-418-6763 for your nearest Beltone hearing care center and make an appointment for a complimentary hearing screening today.

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.

narfe merchandise

NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.com As the official provider of NARFE merchandise, the NARFE General Store offers NARFE-approved name badges, business cards, customizable logo products and plaques. Check out our online catalog.

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

The Way We Worked

This photo, circa 1936-37, shows employees of the Social Security Board (SSB) – the precursor to today’s Social Security Administration – filing workers’ applications for Social Security account numbers. The Social Security Act was signed into law 80 years ago this month, on August 14, 1935. In the first eight months of the program, the SSB, with the help of the Postal Service, issued more than 35 million Social Security numbers. Go to www.socialsecurity. gov/80th anniversary for celebration information. Photo courtesy of the Franklin D. Roosevelt Presidential Library, 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. To join, visit http://shfg.org.

social Security Hits the big 8-0!

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Did you know? To date, the Social Security Administration (SSA) has issued 435.7 million different Social Security numbers, according to the SSA website. SSA does not reassign a Social Security number after the number holder’s death. And although it issues about 5.5 million new numbers each year, SSA says its numbering system will provide it with enough new numbers for several more generations.

“To you, it’s the perfect lift chair. To me, it’s the best sleep chair I’ve ever had.” — J. Fitzgerald, VA

Easy-to-use remotes for massage/heat and recline/lift

Complete with battery backup in case of power outage

Our Perfect Sleep Chair® is just the chair to do it all. It’s a chair, true – the finest of lift chairs – but this chair is so much more! It’s designed to provide total comfort and relaxation not found in other chairs. It can’t be beat for comfortable, long-term sitting, TV viewing, relaxed reclining and – yes! – peaceful sleep. Our chair’s recline technology allows you to pause the chair in an infinite number of positions, including the Trendelenburg position and the zero gravity position where your body experiences a minimum of internal and external stresses. You’ll love the other benefits, too: It helps with correct spinal alignment, promotes back pressure relief, and This lift chair encourages better posture to puts you safely prevent back and muscle pain. on your feet!

And there’s more! The overstuffed, oversized biscuit style back and unique seat design will cradle you in comfort. Generously filled, wide armrests provide enhanced arm support when sitting or reclining. The high and low heat settings along with the dozens of massage settings, can provide a soothing relaxation you might get at a spa – just imagine getting all that in a lift chair! Shipping charge includes white glove delivery. Professionals will deliver the chair to the exact spot in your home where you want it, unpack it, inspect it, test it, position it, and even carry the packaging away! Includes one year service warranty and your choice of fabrics and colors. If you’re not 100% satisfied simply return the chair within 30 days for a refund of the product purchase price. – Call now!

The Perfect Sleep Chair

Call now toll free for our lowest price. Please mention code 100284 when ordering.

1-888-842-7007 Long Lasting DuraLux Leather

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Tan

Burgundy Cashmere

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Chocolate Burgundy

Chocolate Indigo

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We’ve e’ve all had nights when we just can’t lie down in bed and sleep, whether it’s from heartburn, cardiac problems, hip or back aches – it could be a variety of reasons. Those are the nights we’d give anything for a comfortable chair to sleep in, one that reclines to exactly the right degree, raises feet and legs to precisely the desired level, supports the head and shoulders properly, operates easily even in the dead of night, and sends a hopeful sleeper right off to dreamland.

Sit up, lie down — and anywhere in between!

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Packed with softness, comfort, and fleecy warmth — inside & out! Neat collar, front pocket with eyeglasses loop, & 4-button front for on/off ease. Banded bottom for a relaxed fit. Made of easy-care polyester/cotton for quick wash and dry. Won’t Shrink, Fade or Wrinkle! Order now!

Chest Pocket with Eyeglasses Loop!

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Chambray

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Tan 2 for 25.98 3 for 37.47

FREESHIPPING! Navy

Regular Sizes: S(34-36) M(38-40) L(42-44) XL(46-48) *Big & Tall Men (just $4 more each):

2XL(50-52) 3XL(54-56) 4XL(58-60) LT(42-44) XLT(46-48) 100% Satisfaction Guaranteed or Full Refund of merchandise purchase price.

Black

When you pay by check, you authorize us to use information from your check to clear it electronically. Funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.

I enclose $_______ purchase price plus $5.99 toward

shipping. Please add applicable state & local sales tax for the following states: AZ, GA, MA, NJ, PA, WI, & WV.

QZ EB Ø2 Ø7 Ø3 Ø1 8M

7PW–1533L VANILLA BURGUNDY TAN CHARCOAL NAVY BLACK CHAMBRAY

WHAT HOW SIZE? MANY?

For Faster Service Call: 1-800-543-4810 or Visit www.Haband.com/bestdeals

Imported

Charcoal

Haband #1 Bargain Place, Jessup, PA 18434-1834 Card # ____________________________________Exp.: ___ /____ Mr. Mrs. Ms._____________________________________________ Address_______________________________________Apt. # ____ City & State________________________________Zip __________ Phone __________________________________________________ Email __________________________________________________