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ON HOLD AT OPM
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TURNING TSP INTO A LIFETIME OF INCOME
COVER STORY
FABLE VS. FACT Golden Parachutes? Free Health
Care for Life? Myths Busted Here!
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Volume 92 • Number 9
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Call Beltone at 1-888-683-2583 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 December 31, 2016.
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COVER STORY FABLE VS. FACT. Golden parachutes for members of Congress? Fable! The issue of legislative and executive compensation is charged with politics and bound up with myths. We bust them.
ON HOLD AT OPM. Retirees who call the Office of Personnel Management face delays the agency itself acknowledges are unacceptable.
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WASHINGTON WATCH
6
House Committee Passes NARFE-Opposed Postal Reform Legislation
7
Panel Postpones Action On WEP Reform Bill
8
Long-Term Care Rates Soar, NARFE Wants Program Changes
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Medicare Trustees Issue Premium Prediction
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Legislative Conference: March 12-15, 2017
10
Apter Named Staff Assistant
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Debate Continues on Spending Bills
12
NARFE Bill Tracker
COLUMNS
4 From the President 36 Managing Money 38 The Informed Citizen 40 Alzheimer’s Update DEPARTMENTS
16 Questions & Answers 42 For the Record:
TSP Returns, Retirement Claims Status, Countdown to COLA
On the Web
44 NARFE News
VISIT US ONLINE AT:
www.narfe.org
48 The Way We Worked
LIKE US ON FACEBOOK:
NARFE National Headquarters FOLLOW US ON TWITTER:
@narfehq
ON THE COVER
Illustration by Bill Pragluski, Critical Stages, LLC W W W. N A R F E . O R G
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SEPTEMBER 2016 | Volume 92 | Number 9
EDITOR Margaret M. Carter EDITORIAL ADMINISTRATOR Toni Vallario GRAPHIC DESIGN Charlene Gridley
National Active and Retired Federal Employees Association NATIONAL OFFICERS RICHARD G. THISSEN, President; natpres@narfe.org JON DOWIE, Secretary/Treasurer; natsectreas@narfe.org
EDITORIAL BOARD Richard G. Thissen, Jon Dowie REGIONAL VICE PRESIDENTS 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.
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
HERE’S HOW TO CONTACT US… TO JOIN NARFE OR TO RENEW YOUR MEMBERSHIP:
CALL (TOLL-FREE) 800-627-3394 OR GO TO www.narfe.org
REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: pappysdad@cobridge.tv REGION VII Rodney L. Adelman (Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: narfe7vp@cox.net REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) TEL: 707-644-7565 EMAIL: HLZajac125@gmail.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) TEL: 360-692-9741 EMAIL: lannyjean@comcast.net REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) TEL: 703-830-6590, CELL: 703-201-6304 EMAIL: wshack1951@aol.com
TO REACH A FEDERAL BENEFITS SPECIALIST:
EMAIL fedbenefits@narfe.org NARFE HEADQUARTERS
TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:
CALL (TOLL-FREE) 800-456-8410, EMAIL memberrecords@narfe.org OR LOG ON TO www.narfe.org and go to “My Account”
606 N. Washington St. Alexandria, VA 22314 703-838-7760
www.narfe.org
narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $45. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2016, 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
CAPITOL HILL OUTLOOK: BUSY
T
he next few months will be busy ones for NARFE on Capitol Hill. Consequently, we may be asking
you to weigh in on several legislative issues. Please be ready to take action. When they return to Washington after Labor Day, members of Congress will have to pass a continuing resolution to fund the government for the fiscal year beginning October 1. I believe there is no chance that either party would be foolish enough to threaten a shutdown. However, in the past, deliberations on continuing resolutions have seen both sides using the must-pass spending bill as a means to get their special-interest amendments enacted. I am sure this year will be no different. Our concern, of course, relates to any provisions that would affect government operations and federal employees and retirees. In addition, the postal reform bill that passed the House Committee on Oversight and Govern-
ment Reform in July likely will be brought to the House floor for a vote. We continue to oppose this bill because it would remove heath care choice from current postal retirees by requiring them to enroll in Medicare in order to keep their Federal Employees Health Benefits Program coverage, thus breaching the unwritten rule not to change benefits after an employee retires. This has the potential to have an adverse impact on all federal retirees in the future; once the first promise is broken, the next ones will be easier. We also are hopeful that the original version of the bill to reform the Windfall Elimination Provision (WEP) will be approved in committee and voted on in the House. Just before Congress adjourned for its summer recess, a substitute version was submitted to the House Committee on Ways and Means and then withdrawn. While we do not support the substitute, we support the original version of the bill because it is the first crack in the dike of WEP and the first real chance for any reform. While these are the issues we know may arise, there certainly could be others. Depending on the election results, the lame duck Congress could be very active. Please make sure NARFE has your current email address so you can receive our action alerts. Stay tuned and stay informed.
RICHARD G. THISSEN NARFE NATIONAL PRESIDENT natpres@narfe.org
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“To you, it’s the perfect lift chair. To me, it’s the best sleep chair I’ve ever had.” — J. Fitzgerald, VA
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© United States Postal Service. All rights reserved.
Washington Watch
HOUSE COMMITTEE PASSES NARFE-OPPOSED POSTAL REFORM LEGISLATION
N
ARFE opposes a postal reform bill approved July 12 by the House Committee on Oversight and Government Reform. The Postal Reform Act of 2016, H.R. 5714, would require
current postal retirees to enroll in Medicare Part B or forfeit the Federal Employees Health Benefits Program (FEHBP) coverage they earned as a benefit of long years of employment.
For the postal retirees and family members who are not currently enrolled in Medicare Part B – approximately 76,000 individuals – this would require they pay an additional $121.80 per month, or more, in Medicare premiums. “Postal retirees should not now, after finishing their careers with the Postal Service, be threatened with the loss of their health insurance entirely if they do not buy additional coverage through Medicare,” says NARFE President Richard G. Thissen. “This is not only unfair to postal retirees, but it also sets a dangerous precedent for all federal retirees.” H.R. 5714 was introduced by House Oversight and Government Reform Committee Chair6
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man Jason Chaffetz, R-UT, on July 11, the day before his committee considered it and after a comment period on a discussion draft. He was joined by a bipartisan group of four cosponsors: Ranking Member Elijah E. Cummings, D-MD; and Reps. Mark Meadows, R-NC; Gerald E. Connolly, D-VA; and Stephen F. Lynch, D-MA. NARFE had made its concerns with the mandatory Medicare provision abundantly clear, through direct meetings, official comments, press statements and letters. “This is not the only path forward,” Thissen argued. “Why not allow the Postal Service to raise the price of postage to a more reasonable amount, instead of continuing to heavily subsidize
the business of bulk mailers? Why not allow it to ship alcohol or provide more financial services? Why not allow the Postal Service to pay its health insurance bills when they are due, and not before, by ending the burdensome prefunding requirement? Unfortunately, this bill avoids making those more difficult decisions, and instead places the burden of balancing the Postal Service’s books on the backs of 76,000 postal retirees.” NARFE suggested a simple alternative that would preserve both choice for current postal retirees and substantial savings for the Postal Service: Maintain automatic enrollment of current postal retirees into Medicare Part B, but provide them with a short opt-out window of 60-90 days. Rep. Brenda Lawrence, D-MI, a 30-year employee of the Postal Service before joining Congress, strongly supported the NARFE alternative and offered it as an amendment. However, she withdrew the amendment based on
assurances that the bill’s sponsors would work with her to address her concerns before the bill moves to the House floor. Rather than hold up progress on significant postal reform legislation, she accepted those assurances. Despite losing the battle on the opt-out amendment for the time being, NARFE was able to achieve some modifications: • First, the bill waives any increased premiums for late enrollment in Medicare for those currently retired and forced in; • Second, those postal retirees forced to enroll would pay less than full Medicare Part B premiums for the first three years of coverage, paying only 25, 50 and 75 percent of the premium in years one, two and three, respectively; and • NARFE was able to ensure that those postal retirees forced to enroll in Medicare as a condition of continuing their FEHBP coverage would be enrolled automatically, to avoid complete loss of all health insurance coverage for individuals who would fail to enroll affirmatively. H.R. 5714 also includes additional postal operational and governance reforms. It retains six-day delivery, which NARFE supports, but it would end to-thedoor delivery for new addresses. It also allows for a one-cent increase in the price of a stamp, prior to a more comprehensive restructuring of postal rates by the Postal Regulatory Commission. —BY JOHN HATTON, DEPUTY LEGISLATIVE DIRECTOR
PANEL POSTPONES ACTION ON WEP REFORM BILL
O
nly 24 hours before the House Committee on Ways and Means was scheduled to consider H.R. 711, a Windfall Elimination Provision (WEP) reform bill, Rep. Kevin Brady, R-TX, the bill sponsor and committee chairman, released an amended version of the bill. NARFE opposed the lastminute changes and withdrew its support for the bill in its amended form. The next day, Brady pulled the bill from consideration, amid concerns expressed by various stakeholders, including NARFE. “We need the community to come together on what they can all support, or the consequence, unfortunately, is to see the current WEP harm people on a daily basis that frankly don’t deserve being harmed,” Brady said. “Meanwhile, we will postpone consideration of H.R. 711 until that agreement is found.” The WEP reduces the earned Social Security benefits of individuals who get an annuity for work not covered by Social Security, including federal employees under the Civil Service Retirement System, as well as state and local government employees. The original bill would reduce the WEP penalty by an estimated 50 percent for current beneficiaries. The amended bill would
reduce the WEP penalty by less than 15 percent, or about $40 per month, for current beneficiaries. While NARFE believes some relief is better than none, committee staff gave insufficient notice and explanation for the late changes. NARFE is committed to ensuring that any WEP reform bill provides the most relief possible. NARFE continues to support H.R. 711 in its original form. —BY JOHN HATTON, DEPUTY LEGISLATIVE DIRECTOR
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
LONG-TERM CARE PREMIUMS SOAR 83 PERCENT, NARFE WANTS CHANGES
T
he Office of Personnel Management (OPM) said July 18 that premiums in the Federal Long Term Care Insurance Program (FLTCIP) will increase an average of 83 percent, with individual increases ranging from 0 to 126 percent, beginning November 1. In response, NARFE called for changes in the structure of the insurance program for the federal community. “This massive, 83 percent premium increase will come as a shock to the more than 274,000 federal employees and annuitants and their spouses enrolled in FLTCIP,” NARFE President Richard G. Thissen said. “They are now faced with difficult choices – pay substantially higher premiums; reduce coverage substantially; or, in the worst case scenario, drop the coverage some have paid into for more than 14 years. “I am stunned at the extent of the increase and angry that this type of financial pressure is being placed on federal employees and retirees,” Thissen continued. “This situation should not have occurred and signals the need for change in the structure of the FLTCIP to prevent federal employees and retirees from ever facing such huge increases again.” New Contract Just Awarded. The increases follow the awarding in May of a new sevenyear FLTCIP contract to the John Hancock Life & Health Insurance Company. John Hancock, which has been the sole underwriter of the program since 2009 and previously partnered with Metropolitan Life as a co-insurer, was the
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only bidder for the new contract. Hancock representatives said the increase resulted from greater than expected claims at older ages, more use of the most expensive policies, and the low-interest rate environment for bonds, which depressed the company’s investment returns. Premiums also rose in 2009, when that seven-year contract was awarded. “When the first rate hike of 25 percent was announced in 2009, NARFE was concerned that early warning signs within the industry had not been heeded,” Thissen said. “As a result, opportunities to mitigate that premium increase were either disregarded or missed. It is infuriating to find ourselves saying the same thing seven years later. “NARFE once again is put in the position of wanting to encourage its members to plan for the future, while having great difficulty recommending a product whose premiums are not predictable or affordable.” Options Offered. Long Term Care Partners (LTCP), which administers the program, sent every enrollee affected by the increase a packet of personalized plan change options that allow them to: keep their current coverage with increased premiums; keep current premiums but reduce coverage; or split the difference by reducing coverage and increasing premiums, but by less for each. Eligible enrollees also may elect a “paid-up limited benefit,” which allows enrollees whose premium increase is beyond a certain per-
centage to stop paying premiums and keep paid-up coverage with a reduced level of benefits. The option packages were mailed from July 18 through July 27. Enrollees must decide among the options by September 30. If they take no action, enrollees’ current coverage will be extended at the increased premium rate. About 10,000 of the 274,000 enrollees in FLTCIP will not be affected by the premium increase at this time. Those enrollees are: those who applied for coverage on or after new FLTCIP application rates were raised on August 1, 2015; those whose age at purchase was 80 years or older; those currently enrolled in the FLTCIP’s Alternative Insurance Program; and those currently eligible for benefits or awaiting a decision pending a claim. For Information. LTCP told NARFE it has hired additional staff to answer enrollee telephone calls and email messages. LTCP call centers are staffed from 8 a.m. to 8 p.m., Eastern time. Call 800-582-3337 (TTY 800843-3337). Enrollees who are registered for online access to their enrollment account can view their options online and make an election. The LTCP website, www. ltcfeds.com, includes answers to questions about the increase. NARFE’s Federal Benefits Service Department staff members also are available to help NARFE members get answers to their questions. Call 703-838-7760 and ask for NARFE Federal Benefits, or email fedbenefits@narfe.org.
MEDICARE TRUSTEES SAY PREMIUM COULD RISE 22%
T
he 2016 Medicare Trustees Report released in June projects a 22 percent increase in the standard Medicare Part B premium, from about $122 per month to $149 per month. But that level depends on the Trustees’ prediction that there will be a 0.2 percent costof-living adjustment (COLA) in Social Security (SS) benefits. As it stands now, the June consumer price index data would result in a 0.5 percent COLA, beating the Trustees’ expectations. Without any COLA, the standard premium would remain at $122. With a larger COLA, the increase would be smaller than the $149 the
Trustees estimate. The premium you pay varies, depending on individual circumstances. The COLA will be announced October 18. This confusing situation results from the interaction of several laws. First, Part B premiums are set at a level to ensure that 25 percent of the cost of benefits is covered by total premiums. Second, the so-called hold harmless provision limits the dollar increase in an individual’s Part B premium to the dollar increase in an individual’s SS benefit. So when there is a zero COLA, or small COLA, anyone who pays premiums from their SS benefit pays less than their fair share.
This forces those not held harmless, including many federal retirees under the Civil Service Retirement System, to pick up the slack. Those held harmless this year because there was no COLA, pay about $105 a month in premiums. Next year, that number may rise, but only by the amount of any SS benefit increase. For those not held harmless, last year’s budget deal included a compromise limiting their premium increase to what it would have been if there had been a COLA. That same solution would apply to 2017 premiums if there is no COLA, but not if there is a very small one. At this point, we should hope for an ever-increasing COLA, which would provide additional annuity income and limit the burden-shifting effect of the hold harmless clause. —BY JOHN HATTON, DEPUTY LEGISLATIVE DIRECTOR
NARFE-PAC CONTRIBUTION FORM I would like to be a SUSTAINER and make a monthly credit card contribution to NARFE-PAC of: q $25/month q $10/month
Monthly contributors of $10 or more will receive the NARFE-PAC Sustainer lapel pin and a NARFE duffle bag.
q Other: ______/month (minimum of $10) OR
q Please charge to my credit card (required for monthly contribution) Credit Card Information Type:
q MasterCard q VISA q Discover q American Express
Card No.: _____________________________________ Expiration Date: _____ /_________ mm
yyyy
I would like to make a one-time contribution of:
Name on Card: ________________________________
q $250 GOLD – Gold lapel pin and duffle bag
Signature: ____________________________________
q $100 SILVER – Silver lapel pin
Date: ________________________________________
q $50 BRONZE – Bronze lapel pin q $25 BASIC – Basic lapel pin q Other: _______________
q Please do not send any gifts for my contribution.
Or make check payable to NARFE-PAC. Mail to: National Active and Retired Federal Employees Association Attn: Budget & Finance 606 North Washington St. | Alexandria, VA 22314
NARFE Member #: __________________________________________ Name: ___________________________________________________ Address: ___________________________________________________________________________________________________________ City: __________________________________________________________________
State: ________
ZIP: ___________________
Only members of the National Active and Retired Federal Employees Association may contribute to NARFE-PAC. NARFE will neither favor nor disadvantage anyone based on the amount of a contribution or the failure to make a voluntary contribution to this political action fund. NARFE-PAC contributions are not deductible for federal income tax purposes.
W W W. N A R F E . O R G
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Washington Watch
LEGISLATIVE CONFERENCE SET FOR MARCH 12-15, 2017
A
re you a new Congressional District Leader or chapter legislative officer and not sure how to fulfill this role? Are you a veteran legislative chair trying to get more of your members involved in grass-roots advocacy? Are you a NARFE member interested in learning about the Association’s legislative priorities? Then the Legislative Training Conference is for you! The 2017 NARFE Legislative Training Conference will be held Sunday, March 12, to Wednesday, March 15, at the Hilton Alexandria (VA) Mark Center. It includes training, national speakers and the opportunity to network with fellow NARFE grass-roots activists. The conference culminates in a visit to Capitol Hill, where attendees will use their new skills in meetings with their legislators. New for 2017, NARFE members will be on Capitol Hill on Wednesday, March 15, when more legislators are likely to be in Washington, DC. In the past, NARFE’s days on the Hill have been held on
Tuesdays, when many members of Congress are traveling back to Washington from their districts. Also new for 2017, the conference will close with a reception March 15 at which attendees can talk with invited members of Congress, debrief the Legislative Department staff and ask final questions. Conference Information: The $175 registration fee includes three buffet breakfasts, two full lunches, one buffet dinner, the closing reception, all materials, and transportation to and from Capitol Hill. Federations should use Ten Percent Funds to help offset the registration cost. A registration form will be included in the October issue of narfe. Online registration will open October 1. Hotel Information. The rate at the Hilton Alexandria Mark Center is $169 per night, plus applicable taxes, for a total of $194.51, per night for single- and double-room occupancy. This rate will be available for three days before and after the conference,
APTER NAMED STAFF ASSISTANT
R
oss Apter joined a senatorial campaign NARFE in June as during his final semester a legislative staff of college. assistant. A 2016 graduA Washington, DCate of the University of area native, Apter also Maryland with a bachelor had internships with of arts degree in governthe Centers for Disease ment and politics, Apter Control and Prevention, previously worked at the Maryland-National Herman & Associates, a Ross Apter Capital Park and Planmotor fuel regulation conning Commission, and sulting firm, and volunteered with the U.S. Department of Energy.
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space dependent. Hotel registration also will open October 1. More information, including online registration, will be available at www.narfe.org/legcon2017. —BY SARAH WEISSMANN, GRASS-ROOTS PROGRAM MANAGER
MYTH vs. REALITY MYTH: The U.S. Postal Service (USPS) operates at a financial loss because of declining mail volume and increasing competition. REALITY: The USPS would be earning a profit if it were not required to prefund the health benefits of future postal retirees. In 2006, as a way for the Congressional Budget Office to declare (“score”) a bill “deficit neutral,” Congress began requiring the USPS to prefund future retirement health benefits over a 10-year period. Forcing the USPS to pay billions of dollars for benefits for workers who have not yet been born is the single biggest reason for the USPS deficit. No other public or private organization has such a mandate. Without the prefunding requirement, the USPS would have made a profit in 2015. On paper, the agency, which gets no federal operating funds, reported a loss of $5.06 billion for the year. However, $5.7 billion went unpaid toward health benefits for future retirees.
DEBATE CONTINUES ON SPENDING BILLS AS FISCAL YEAR DEADLINE APPROACHES
B
efore leaving Washington, DC, for the political party nominating conventions and the traditional August/Labor Day recess, congressional budget writers put the finishing touches on the 12 annual appropriations bills for the fiscal year beginning on October 1. House appropriators completed action on the last of their 12 fiscal year 2017 appropriations bills 24 hours before Congress adjourned July 15 for the summer break. The Senate Appropriations Committee had already cleared all of its com-
panion measures before the Independence Day holiday, the earliest it had completed action on all 12 measures since 1988. Still, passage of the bills by both the full House and Senate remains in doubt, thanks to the inclusion of extraneous legislative riders in several of the committee-reported measures and the interest of both representatives and senators to use any number of the spending vehicles to push personal and party political agenda items. Plus, Senate Democrats have argued that their Republican colleagues are
reneging on last year’s budget deal, which promised parity between defense and domestic appropriations increases. Senate Democrats blocked floor consideration of the annual defense appropriations bill and promised to do the same to all spending measures absent a resolution of the dispute. When lawmakers return in September, the debate will resume while the prospect of a government shutdown once again hangs in the balance less than 60 days before the November elections. —BY ALAN LOPATIN, LEGISLATIVE COUNSEL
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Washington Watch
narfe bill tracker THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO THE CONGRESSIONAL LEGISLATION THAT NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE
BILL NUMBER / NAME / SPONSOR
WHAT BILL WOULD DO
H.R. 3351: CPI-E Act of 2015 / Rep. Mike Honda, D-CA COLA
LATEST ACTION(S)
Requires Social Security and many federal retirement programs to use the Consumer Price Index for the Elderly (CPI-E) to calculate cost-ofliving adjustments in retirement benefits.
Cosponsors: 37 (D)
Referred to the House committees on Ways and Means, Veterans’ Affairs, Oversight and Government Reform, and Armed Services narfe, October 2015
H.R. 4461: Federal Employee Rights Act / Rep. Tom Price, R-GA UNION RIGHTS
Cosponsors: 41 (R)
H.R. 485: Wage Grade Employee Parity Act /Rep. Matt Cartwright, D-PA
Would limit the rights of federal employee unions by barring them from automatically deducting dues from workers’ paychecks, alter the way union elections are conducted and prohibit unions from using dues to conduct political activity.
Referred to the House Committee on Oversight and Government Reform
Gives the president the authority to provide Wage Grade, or hourly, employees a pay raise.
Referred to the House Committee on Oversight and Government Reform
Provides for a 3.8 percent pay raise for federal employees and a 1.4 percent increase in locality pay in 2017.
Referred to the House Committee on Oversight and Government Reform
Cosponsors: 9 (D), 3 (R)
FEDERAL COMPENSATION
H.R. 4585: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerald E. Connolly, D-VA Cosponsors: 71 (D) S. 2699: The Federal Adjustment of Income Rates (FAIR) Act / Sen. Brian Schatz, D-HI
narfe, April 2016
Referred to the Senate Committee on Homeland Security and Governmental Affairs
Cosponsors: 3 (D) H.R. 5714: Postal Service Reform Act of 2016 / Rep. Jason Chaffetz, R-UT
Requires postal retirees to enroll in Medicare in order to continue receiving their current federal health insurance coverage. Enrollment would be automatic.
Cosponsors: 3 (D), 1 (R)
Referred to the House Committee on Oversight and Government Reform See story, p. 6
POSTAL REFORM H.Res. 12: Expresses the sense of the House that the Postal Service should take measures to ensure continuation of six-day delivery / Rep. Sam Graves, R-MO
Expresses the sense of the House that the U.S. Postal Service should maintain six-day 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
Cosponsors: 176 (D), 58 (R) NARFE’s Position: 12
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Support
Oppose
No position
EDITOR’S NOTE: Several items have been removed from the NARFE Bill Tracker. Those bills are all listed online at cqrcengage.com/narfe/home.
ISSUE
POSTAL REFORM
BILL NUMBER / NAME / SPONSOR
WHAT BILL WOULD DO
LATEST ACTION(S)
H.R. 784: Protect Overnight Repeals the service standards Delivery Act / Rep. Rosa implemented by the Postal DeLauro, D-CT Service on 1/5/15 and directs the Postal Service to reinstate Cosponsors: 100 (D), 3 (R) 12/31/2011 service standards.
Referred to the House Committee on Oversight and Government Reform
S. 1742: Rural Postal Act of Returns to service standards 2015 / Sen. Heidi Heitkamp, of July 2012, preserves six-day D-ND delivery and puts a two-year moratorium on plant closures. Cosponsors: 7 (D)
Referred to the Senate Committee on Homeland Security and Governmental Affairs
S. 2051: The Improving Postal Operations, Service and Transparency Act (iPost) of 2015 / Sen. Thomas R. Carper, D-DE
Referred to the Senate Committee on Homeland Security and Governmental Affairs
Cosponsors: 2 (D), 3 (R)
Requires postal employees and retirees to enroll in Medicare in order to continue receiving their current federal health insurance coverage and cuts workers’ compensation benefits for injured federal employees.
H.Res. 54: Expresses the sense of the House that the Postal Service should take all measures to restore service standards in effect on July 1, 2012 / Rep. Dave McKinley, R-WV
Expresses the sense of the House that the U.S. Postal Service should restore service standards as of July 1, 2012. 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
Would allow the U.S. Postal Service to provide basic financial services, including small-dollar loans, checking and savings accounts and international money transfers, and to create a Postal Card that allows users to engage in these services.
Referred to the House Committee on Oversight and Government Reform
narfe, March 2016
Cosponsors: 184 (D), 51 (R) H.R. 4422: Providing Opportunities for Savings, Transactions, and Lending (POSTAL) Act of 2015 / Rep. Cedric L. Richmond, D-LA Cosponsors: 12 (D)
CAMPAIGN FINANCE
HEALTH CARE
H.R. 20: The Government By the People Act / Rep. John Sarbanes, D-MD Cosponsors: 160 (D), 1 (R) H.R. 2175: FEHBP Prescription Drug Oversight and Cost Savings Act / Rep. Stephen F. Lynch, D-MA Cosponsors: 2 (D)
Reforms campaign finance laws Referred to three to put small donors on par with House committees wealthier donors. Provides a tax credit for contributions and government matching contributions. Provides the Office of Personnel Management greater oversight authority over the prescription drug contracting and pricing methods of the Federal Employees Health Benefits Program (FEHBP).
Referred to the House Committee on Oversight and Government Reform
(Continued on p. 14) W W W. N A R F E . O R G
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Washington Watch
narfe bill tracker
(Continued from p. 13) ISSUE
BILL NUMBER / NAME / SPONSOR H.R. 973: Social Security Fairness Act of 2015 / Rep. Rodney Davis, R-IL Cosponsors: 115 (D), 37 (R)
GPO/WEP
WHAT BILL WOULD DO
LATEST ACTION(S)
Repeals the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).
Referred to the House Committee on Ways and Means
S. 1651: Social Security Fairness Act of 2015 / Sen. Sherrod Brown, D-OH
Referred to the Senate Finance Committee
Cosponsors: 16 (D), 6 (R), 2 (I)
narfe, September 2015
H.R. 711: Equal Treatment of Reforms the Windfall Elimination Provision (WEP). For Public Servants Act of 2015 individuals who turn 62 in / Rep. Kevin Brady, R-TX 2017 or later, it provides a new formula that would deCosponsors: 45 (D), 75 (R) crease the WEP penalty, on average, for those affected. For those who turn(ed) 62 before 2017, it would reduce the WEP penalty by up to 50 percent, based on savings derived from improved enforcement of WEP, as determined by the Social Security actuary.
Referred to the House Committee on Ways and Means
H.R. 532: Federal Employees Paid Parental Leave Act / Rep. Carolyn Maloney, D-NY
Referred to the House committees on Administration, and Oversight and Government Reform
Allows federal employees six weeks of paid leave for the birth or adoption of a child.
Cosponsors: 66 (D), 1 (R) PAID PARENTAL LEAVE
narfe, May 2015
S. 2033: Federal Employees Paid Parental Leave Act / Sen. Brian Schatz, D-HI
Referred to the Senate Committee on Homeland Security and Governmental Affairs
Cosponsors: 2 (D)
DC STATEHOOD
PENSION SCAM PROTECTION
14
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See story, p. 7
narfe, November 2015
Sets forth procedures that H.R. 317: New Columbia Admission Act / Del. Eleanor would allow the District of Columbia to become a Holmes Norton, D-DC state known as New Columbia. Cosponsors: 132 (D) 1 (I)
Referred to the House committees on Oversight and Government Reform, and Administration
H.R. 3850: Annuity Safety and Security Under Reasonable Enforcement (ASSURE) Act / Rep. Matt Cartwright, D-PA
Referred to four House committees
Cosponsors: 24 (D), 1 (R)
Requires appropriate disclosures regarding “pension advance” schemes and caps the interest rates on these advances. Also creates a private right-ofaction to allow individuals to enforce these laws in court.
NARFE’s Position:
Support
narfe, January 2016
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 COMPUTING A LAW ENFORCEMENT ANNUITY AFTER MORE THAN 20 YEARS OF SERVICE I am a criminal investigator and will be required to retire in seven years at age 57. At that time, I will have 34 years of federal service: 13 years and 13 days in the Marines and 21 years in the U.S. Marshals Service. When my annuity is calculated, what will the percentage be of my highest three years of pay? My belief is it starts at 34 percent, plus a (unknown) percentage for every year past 20, which, in my case, will be 14 years. What is the unknown percentage?
Q A
Here is the basic formula for the annuities of federal law enforcement officers (LEO) under the Federal Employees Retirement System (FERS): High three years of average salary multiplied by 1.7 percent of law enforcement service up to 20 years; plus 1 percent of service over 20 years of LEO or non-LEO service. In your case, you would multiply 1.7 percent times 20 years = 34 percent; plus 1 percent times 14 16
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years = 14 percent. So your “high 3” average salary would be multiplied by 48 percent to arrive at the yearly annuity. (This assumes you pay the deposit for the 13 years of military service prior to retirement.)
SERVICE DEPOSIT: TO PAY OR NOT TO PAY?
Q
What would be the effect on my retirement if I do not pay a service deposit?
A
The answer depends upon the retirement system you are under and when the service occurred for which you did not pay retirement contributions. Under the Federal Employees Retirement System (FERS), if the service took place prior to January 1, 1989, the service may be creditable if you pay the deposit. If you do not pay the deposit or if the period of service was on or after January 1, 1989, you will receive no credit for that time toward eligibility for, or computation of, your annuity; the time just won’t count at all. If you are under the Civil Service Retirement System (CSRS) and the period of service was before October 1, 1982, you will receive credit for that service toward eligibility and in the annuity computation. But unless you pay the deposit, your annuity will be reduced by 10 percent of the amount of deposit owed. If
the period of service was on or after October 1, 1982, the service will count toward eligibility for an annuity, but unless you pay the deposit, that service will not be used in computing your annuity.
TIMETABLE FOR DOD PHASED RETIREMENT
Q
I was pleased to hear that the Department of Defense (DOD) has implemented phased retirement with its June 21 memo. I called the Army Benefits Center, but they have not yet implemented it. When will the Department of the Army follow through with DOD’s guidance to implement? The phased retirement program would work well for me, but I’m not sure how much longer to wait.
A
Unfortunately, we don’t have the answer to your question. Each DOD component may have a different implementation date. The official DOD announcement provides the forms you need to apply for phased retirement. You can find the announcement at www.dtic. mil/whs/directives/corres/pdf/ DTM-16-004.pdf.
RETIREES HOW TO START STATE TAX WITHHOLDING
Q
My application for retirement was finalized in May. My interim payments ended, and my actual annuity
began at this point. I was advised by the human resources specialist who processed my application for retirement to delay state tax deductions from my annuity until my case was finalized. I contacted the Department of Taxation for the state of Virginia for assistance. Officials there informed me that they could not provide this service and referred me to my human resources or payroll office. As you are aware, as a retiree I am no longer supported by a HR or payroll office. How do I begin state income tax withholding?
A
The easiest way to start your state income tax withholding is to use the Retirement Services Online website of the Office of Personnel Management (OPM). By now, OPM has provided you with a PIN to use to access the site. Go to www.servicesonline.opm.gov/; put in your full CSA number, including the 0 suffix, and your PIN; click on Federal/State Tax Withholding. You also can call OPM at 888-767-6738 to have your state tax withholding started.
DOES SURVIVOR ANNUITY AFFECT SPOUSE’S SS?
Q
I am a Civil Service Retirement System (CSRS) annuitant and do not receive any Social Security. My wife soon will receive a small Social Security benefit at age 66. I have designated her as my survivor for my CSRS pension. Will her Social Security benefit be reduced
when she becomes a survivor annuitant?
A
If your wife has never worked in the federal government, her Social Security benefit will not be reduced when she becomes a recipient of your survivor benefits. However, if you decide to receive benefits under your wife’s Social Security account, you would be subject to the Government Pension Offset (GPO), which would reduce any Social Security benefit to which you might be entitled.
LIFE INSURANCE OPTIONS
Q
I have Basic life insurance under the Federal Employees’ Group Life Insurance Program (FEGLI) in the amount of $143,000 with a monthly premium of $304.59. I would rather have the amount of the premium added to my monthly annuity than continue paying the premium. Would I lose the entire $143,000 if I discontinue the monthly premium? Is there an option other than paying/not paying the premium?
A
If you cancel your enrollment in FEGLI, you will not have any life insurance coverage and you cannot get a refund of the premiums you have paid. Neither can you have the amount of premiums you are paying “added” to your monthly annuity; they simply no longer would be deducted from your annuity. As a retiree, you always can cancel any optional insurance you elected, but in order to keep W W W. N A R F E . O R G
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Questions & Answers
your life insurance in effect, you must keep the Basic life insurance.
HOLD HARMLESS AND THE MEDICARE PENALTY
Q
I am paying a 30 percent Medicare Part B penalty. How is this penalty computed? Also, last April, I signed up to collect Social Security but suspended payments until next July, when I will be 70. If there is no cost-of-living adjustment again next year, will I be protected from the Medicare Part B premium increase, or do I need to actually be collecting Social Security benefits to have the hold harmless protection?
A
For every full 12-month period in which you were not enrolled but could have been enrolled in Medicare Part B, 10 percent of the premium is added to the premium in effect when you finally do enroll. In your case, this is 30 percent. You will have to pay the penalty as long as you are enrolled in Part B. Once you begin drawing Social Security and having your Part B premiums withheld from your payments, you technically will be eligible for the hold harmless protection. However, your premiums still may increase because the late enrollment penalty will not be waived and will be based on the new higher premium. Therefore,
while your base premium will not change, you will pay a higher Part B premium due to the increased late enrollment penalty.
CAN’T CANCEL DENTAL COVERAGE UNDER FEDVIP
Q
I’m having a problem with my dental coverage under the Federal Employees Dental and Vision Insurance Program (FEDVIP). I requested a change in December during Open Season. BENEFEDS told me it didn’t get the change before Open Season ended. As a result, a procedure I had done in January cost me more out of pocket. To make matters worse, BENEFEDS says I
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NARFE at Your Service can’t cancel my enrollment now but must wait until the next Open Season. Can’t I just stop paying my premiums?
A
The rules for cancelling or making a change under FEDVIP are restrictive. When you enroll in a plan, you agree to the terms that, for the most part, allow changes and cancellations only during the annual Open Season. There are only two Qualifying Life Events that allow enrollees to cancel their FEDVIP enrollment outside Open Season; neither applies to annuitants: 1. Leaving pay status due to deployment to active military duty; 2. Transferring to an eligible
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position with a federal agency that provides dental and/or vision coverage with 50 percent or more employer-paid premiums. While there is no appeal avenue to the Office of Personnel Management (OPM) for FEDVIP claims disputes, it wouldn’t hurt to write to OPM at 1900 E St. NW, Washington, DC, regarding the fact that your change wasn’t processed in time to be effective January 1. 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 the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.
NARFE service officers are available to answer questions and to assist in helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. For the nearest service officer, call NARFE (toll-free) at:
800-456-8410. NARFE Service Centers also are available in some areas. Use the Service Center listings on the NARFE website,
www. narfe.org.
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All appointments must be scheduled through TruHearing. any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefits first. To find out what is covered under your policy, contact the Service Benefit Plan. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. In addition, these items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross 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 Blue Shield Association is an association of independent, locally operated Blue Cross and Blue Shield Companies.
Cover Story 24
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By David Tobenkin
Tales of extravagant compensation packages received by top elected officials in Washington are myths. We bust them here.
WHEN JAMES P. MORAN, D-VA, LEFT the U.S. House of Representatives in 2014 after 24 years in office, he had prestige, respect and a formidable record of legislative accomplishments. But he owned neither a house nor a car. The expense of raising four children in high-cost Northern Virginia, as well as family medical costs, made renting both a more financially viable option on his $174,000-a-year congressional salary, he says.
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Illustration by Bill Pragluski, Critical Stages, LLC
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FACT
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That compensation level of $174,000 is just $14,000 above the Washington, DC, locality-pay-supplemented compensation for a GS-15, Step 10 civil servant and a fraction of what a person with similar power and authority earns in the private sector. The issue of congressional and presidential compensation is charged with politics and bound up with many myths. If you think members of Congress are voting themselves ever-higher salaries, get free health care forever and glide to retirement in a golden parachute, you would be wrong. The truth is more mundane, more nuanced and complicated by the difficult philosophical and financial questions of determining what high-ranking public servants should receive for their labors.
LEGISLATIVE COMPENSATION
After announcing he would not seek reelection, Moran became one of the few members of Congress openly to call for increasing congressional compensation, including through an amendment he introduced that would have provided for a per diem housing stipend for members of the House to subsidize their Washington housing costs, based on the number of days they resided in the District. Moran notes that he was particularly qualified to offer the amendment because it would not have applied to him, given his local home district. That amendment failed. And so, too, have continuing efforts to increase congressional pay over the $174,000 level in place since 2009. Members of Congress on both sides of the aisle generally view votes for increasing congressional pay as political poison for their next re-election campaign. It’s understandable, as critics have harpooned members of Congress for already making more than three times the typical American household income, which, according to the U.S. Census, was $53,657 in 2014, a figure that has stagnated in recent years. Moran, now employed by law firm McDer26
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mott Will & Emery LLP as a senior legislative adviser, says he has no doubts that low congressional compensation reduces the pool of those who seek office and those who stay in Congress once elected. “No departing member of Congress would want to acknowledge that publicly,” he says. “They all say, ‘I left to spend more time with my family.’ But, in large part, that is because their families needed them to make more money.” Federal employees have good reason to care about the compensation level of members of Congress, Moran says. “One reason I felt strongly about increasing congressional pay is that I had many federal employees and retirees as constituents in my district, and I knew that we wouldn’t be able to increase federal civil service salaries without also increasing congressional salaries,” he says. “Congress would not allow the top civil service salaries to be higher than their own.” The president does considerably better than members of Congress, with pay of $400,000 per year since 2001 (3 U.S.C. § 102), but there is no doubt that the most powerful person on the planet easily could earn a seven-figure salary for a position with a fraction of the demands, risks and responsibilities.
CONGRESSIONAL COMPENSATION PACKAGE: FACT AND FICTION
Perhaps the most surprising aspect of congressional pay and benefits is how close such pay and benefits are to those of senior civil service employees, even beyond the salary level noted earlier. A common myth among federal civil service employees is that members of Congress continue to vote themselves pay raises, while federal retirees receive small or nonexistent cost-of-living adjustments (COLAs) and federal employees receive small or no raises. As noted previously, members of Congress have not received a pay raise since 2009, having repeatedly voted to freeze their pay. The Ethics Reform Act of 1989 established an automatic annual adjustment formula for congressional raises based on the Employment Cost Index, which measures changes in private-sector wages. Any increase may not exceed the percentage base pay increase for General Schedule (GS) employ-
ees. However, Congress can choose to vote to freeze its pay, separate from the raises for federal employees, which it has done since 2009. As for health care, also not true is the notion that members of Congress receive free health care for life. In reality, members of Congress have never received free health care. They pay a portion of their health insurance premiums and receive an employer contribution from the government, similar to other federal employees. Prior to the Affordable Care Act (ACA), members of Congress accessed their health insurance through the Federal Employees Health Benefits Program (FEHBP). However, unlike all other federal employees, who remain in the FEHBP, members of Congress and most of their staff now receive health care through the Health Insurance Marketplace, also known as exchanges, which were created by the ACA. Perhaps the granddaddy of all such myths is that members of Congress can retire and receive their full salary after serving just a single term. In reality, under current congressional retirement plans, their eligibility criteria and retirement benefits are not much more generous than those for Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) employees. Under both CSRS and FERS, members of Congress are eligible for a pension at the age of 62 if they have completed at least five years of service, at age 50 if they have completed 20 years of service, or at any age after completing 25 years of service, notes a July 2015 report by the Congressional Research Service, “Retirement Benefits for Members of Congress.� The amount of the pension depends on years of service and the average of the highest three years of salary. By law, the starting amount of a member’s retirement annuity may not exceed 80 percent of his or her final salary. Because of the uncertain tenure of congressional service, FERS was originally designed, as CSRS had been, to provide a larger benefit for each year of service to members of Congress and congressional staff than to most other federal employees, according to the CRS report. Prior to the Middle Class Tax Relief and Job Creation Act
of 2012 (P.L. 112-96), all members of Congress also became eligible for retirement annuities at an earlier age and with fewer years of service than most other federal employees. However, all members of Congress and congressional staff also paid a higher percentage of salary for their retirement benefits than do most other federal employees before P.L. 112-96 was enacted. P.L. 112-96 made two significant changes to the retirement benefits of members of Congress who are first covered by FERS after December 31, 2012. First, P.L. 112-96 decreased the FERS benefit accrual rate (used in the FERS annuity calculation) for members first covered by FERS (or re-elected with fewer than five years of FERS service) after December 31, 2012, to be the same as regular FERS employees. Therefore, the larger benefit per year of service is no longer available to members of Congress (or congressional employees) first covered by FERS after December 31, 2012. Regular federal employees covered by CSRS contribute 7 percent of pay to the Civil Service
Members of Congress have never received free health care. Similar to other federal employees, they pay a portion of their premiums. Retirement System and their employing agencies contribute a further 7 percent of payroll to CSRS on behalf of these workers. Members of Congress who are covered by CSRS are required to contribute 8 percent of salary to the plan, and the U.S. Congress makes an employer contribution of 8 percent of payroll on their behalf. In fiscal year (FY) 2015, regular federal employees who were covered by FERS prior to December 31, 2012, contributed 0.8 percent of pay to FERS and their employing agencies contributed an amount equal to 13.2 percent of pay. In FY 2015, members of Congress and congressional staff who were covered by FERS prior to DecemW W W. N A R F E . O R G
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Fable
FACT
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Congressional pay increases are
ber 31, 2012, paid 1.3 percent of salary for FERS coverage, and congressional budgets contribute 20.2 percent of pay for members of Congress and 18.4 percent of pay for congressional employees who are enrolled in FERS. Notably, the increased contributions for FERS pensions are subject to the same increased contributions as was required for other new federal employees following legislation passed in 2012 and 2013. For members of Congress covered by FERS prior to December 31, 2012, the accrual rate for congressional service covered by FERS is 1.7 percent for the first 20 years and 1.0 percent for each year beyond the 20th, according to the CRS. For members of Congress covered by FERS after December 31, 2012, the accrual rate for congressional service covered by FERS is 1.0 percent per year of service, or, if the member has at least 20 years of service and serves until at least the age of 62, the benefit accrual rate is 1.1 percent per year of service. This is the same accrual rate that applies to regular FERS employees. The vesting requirement for members of Congress to become entitled to an annuity under CSRS or FERS is five years, the same as for civil service federal employees.
limited to those received by federal civil service employees.
THE HIGH COST OF SERVICE AND IDEAS FOR REFORM
There are particular costs faced by members of Congress. One is the necessity to maintain living arrangements in their home states and in Washington, DC, one of the most expensive locations in the country. The high cost of housing causes some legislators to leave their families back in their home states and to share low-cost housing or, in some cases, to sleep in their offices. The costs of campaigning also usually eat into members’ salaries, Moran notes. “While former members often do well, the front end is problematic – people who would be wonderful members do not run because they cannot afford to go to Washington,” says Elaine Kamarck, a senior fellow in the Governance Studies Program at the Brookings Institution think tank. “The 40-year-old who wants to run 28
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doesn’t see how she or he can afford it. Making hundreds of thousands of dollars as a 60-yearold lobbyist doesn’t help send their kids to college. Compensation of $174,000 is ridiculously low for one important reason: They have to have two houses. No other job requires you to have two places to sleep.” “Thirty years ago, members of Congress were compensated fairly well, at the level of a partner in a medium-sized law firm. But now they are compensated below the level of a senior associate at a large law firm, which is inadequate,” says John Donahue, a professor at the John F. Kennedy School of Government at Harvard, who has studied trends in congressional pay. Moran says a per diem allowance, such as he proposed, is more targeted and might arouse less political opposition than a pay increase and would have the policy benefit of incenting members of Congress to spend more time in Washington, DC, working on legislation and forging consensus, rather than at home working in their districts. Others say members of Congress are paid enough. “I don’t agree with the argument that you are losing talent by not paying more,” says Chris Edwards, an economist at the Cato Institute, a libertarian think tank. “This is supposed to be public service; that implies a sacrifice. By serving in Congress, you gain a lot of prestige in public service that allows you to increase later earning power enormously.” One reform on the table for other feds that almost certainly will not be implemented for Congress is pay for performance. “It is simply too difficult to come up with a metric that would measure the effectiveness of a given legislator,” says Pete Smith, the former chief executive of executive compensation consultancy Watson Wyatt Worldwide and now an independent compensation consultant for nonprofit organizations at Washington, DC-based Smith Pilot.
THE IMPLICATIONS FOR OTHER EMPLOYEES
A variety of individuals interviewed for this story noted that perhaps the most damaging aspect of congressional pay limits has been that they indirectly lead to limits on compensation for top federal performers. Congressional pay increases are limited to those received by federal civil service employees. Some say the detrimental effects of pay freezes and limits in congressional compensation have been even greater upon the staffs of members of Congress. “I think that there has been a politically driven mood on Capitol Hill for many years to demonstrate they are tightening belts by cutting staff pay, and that has been detrimental to effective governance,” says Jason Briefel, interim president of the Senior Executives Association (SEA), an advocacy group for Senior Executive Service and senior level federal employees. One idea for escaping the conundrum would be for outside experts to assess the proper level of congressional compensation. Moran advocates the appointment of an independent commission to do so. Congressional pay could be benchmarked against the earnings of many types of bodies, such as private- or public-sector senior management or legislatures in other countries. Perhaps the best measure might be boards of directors of large organizations, says Dan Marcec, director, Content & Marketing Communications for executive compensation data provider Equilar, Inc. “Over the years, the compensation that such directors receive has shifted away from compensation for every meeting you go to to a set retainer, such as $200,000, and an expectation of mandatory attendance,” Marcec says.
PRESIDENTIAL PAY
No one will shed too many tears for a federal employee who earns $400,000, as in the case of the president. The $400,000 salary was approved in 1999 and went into effect in 2001. That does not include many other supporting benefits, including a $50,000 nontaxed annual expense account, a $100,000 nontaxable travel account and $19,000 for entertainment. Unlike compensation for members of Congress, nearly all interviewed said that the level of compensation for the position of president is almost
irrelevant, with many noting that no one decides to run for president based upon the compensation. Somewhat more controversial is the level of retirement benefits for former presidents. President Harry Truman’s precarious financial condition after leaving office caused Congress in 1959 to pass legislation, the Former Presidents’ Act (FPA), codified at 3 U.S.C. § 102, to “maintain the dignity of the office.” A base pension of $205,700 per year for calendar year 2016 is received, a number that’s been rising gradually. An additional support package includes amounts to support an office and a staff, Secret Service protection, and financial “transition” benefits to assist their transition to post-presidential life. The total pension and benefits package can be rich indeed and appears to be steadily growing. A Congressional Research Service study found that President George W. Bush’s total annual retirement package amounted to $1.1 million in FY 2015, predecessor Bill Clinton’s was $924,000, George H.W. Bush’s was $794,000, and Jimmy Carter’s was $430,000. Both Houses of Congress this year approved legislation (S. 1411, H.R. 1777) that would amend the FPA to start presidential pensions at $200,000 a year and raise them annually by the same percentage increase as is determined for Social Security benefits. Reimbursement for other expenses such as staff and travel would be capped at $200,000 a year. Additionally, the bills seek to remove other benefits currently provided to former presidents, including those currently provided for travel, staff and office expenses. The Senate made changes to the legislation and sent it back to the House on June 21. Kamarck and Smith say the critical factor is to ensure that presidential compensation caps do not serve as a limiting factor for the compensation of top federal employees. There are already some pay authorities that allow pay of well above $200,000 for some employees, but many compensation experts say greater latitude may be necessary to pay above $400,000 for a limited number of top federal talent. —DAVID TOBENKIN IS A FREELANCE WRITER BASED IN THE GREATER WASHINGTON, DC, AREA.
Callers to OPM seeking help with their retirement benefits face delays the agency itself acknowledges are unacceptable. What’s to be done?
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By Everett A. Chasen
CALL CENTER DISCONNECT FEDERAL RETIREES OFTEN NEED TO CONTACT THE U.S. OFFICE OF PERSONNEL MANAGEMENT (OPM) FOR INFORMATION ON their benefits and for help with transactions involving their retirement. Some use OPM’s Retirement Services Online website (www. servicesonline.opm.gov), which allows them to accomplish many tasks related to their account. However, many other retirees don’t have computer or internet access, can no longer use the internet due to health conditions, or simply don’t trust the internet with their personal communications. Most of these people instead use OPM’s call center to get answers to questions about their annuities. (The call center’s phone number is 888-767-6738, TTY: 855-887-4957.) Those who do are hereby warned: You are in for either lots of busy signals or a long wait.
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MAGNITUDE OF THE PROBLEM
“The trials and tribulations NARFE members are having in communicating with OPM have been really bad,” explains David B. Snell, director of NARFE’s Federal Benefits Service Department. “Just today, a member told me that the first time he called OPM he had a 51-minute wait for someone to answer. The next time it was 45 minutes.” Such wait times are not at all uncommon. OPM estimates that in fiscal year (FY) 2015, its retiree call center received 1.9 million calls. Approximately 500,000 of those calls, or 28 percent, were abandoned before being answered — callers decided at some point not to continue waiting any longer for someone to answer them. The average wait time for an answer for those who persisted was 16 minutes. Thus far in FY 2016, says OPM, the average wait time has continued to increase. It’s now 20 minutes. The International Finance Corporation, which provides benchmark metrics for call centers throughout the world, suggests that call centers should strive for a target in which 80 percent of the calls they receive are answered within 20 seconds, and the average time taken before calls are answered should be 28 seconds, not 20 minutes. The percentage of abandoned calls should be only 5 to 8 percent, not 28. The number of unanswered calls and average wait times at OPM have been steadily increasing in the past few years. In FY 2013, OPM received 1.5 million calls at its call center. The number of abandoned calls was 300,000, and the average wait time was 10 minutes — numbers that look good only in comparison to more recent data. FY 2014 saw a decrease from the previous year in the number of calls the center handled, to 1.3 million. However, the number of abandoned calls increased to 400,000, and the average time it took for a call center employee to answer increased to 14 minutes. Clearly, OPM’s performance is getting worse, not better. On its website, the agency offers three alternatives besides Retirement Services Online and the phone for retirees to communicate with the agency: email (retire@opm.gov); regular mail; or, for those who live in or are vis32
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iting the Washington, DC, area, the opportunity to visit the agency’s walk-in retirement information office at OPM’s DC headquarters building. Those who choose either of the first two alternatives fare even worse than those who wait for their calls to be answered. In FY 2015, OPM’s Retirement Services received 264,000 emails — fewer than the 284,000 the office received in FY 2014 and the 275,000 it received in FY 2013. Yet OPM estimates that, thus far in FY 2016, the average time it takes for them to process an email they receive is 44 days. Although it takes longer for OPM to receive letters delivered by the U.S. Postal Service, the average turnaround time for letters and faxes is slightly better. In FY 2015, the agency received 161,000 letters and faxed correspondence, up from 138,000 in FY 2014. OPM’s estimate for the average processing time for these communications in FY 2016 is 32 days. Snell offers his perspective on the problem: “OPM has limited resources, and it has to decide where to put them — in doing either pending claims or answering inquiries. Thankfully, the bipartisan budget agreement (setting budget levels for FY 2016-2017) has additional money for OPM’s Retirement Services, specifically for communications. “But with only one telephone number for retirees to call, and with potentially two million callers (this year), I don’t see much relief for retirees trying to call OPM’s retirement information offices.”
OPM’S RESPONSE
To its credit, OPM appears to understand the problem and is taking steps to address it. Kenneth J. Zawodny, Jr., associate director of Retirement Services for OPM, is a regular contributor to OPM’s Director’s Blog (www.opm. gov/blogs/Director). On February 24, in a post titled “We are experiencing high call volumes,” Zawodny wrote: “I recognize the level of service concerning the call center doesn’t meet your or my expectations. We continue to work within the limited resources we have to provide you with the very best service we can.” OPM’s current strategic plan includes a
performance measure to reduce wait times and abandonment rates, with a target of having fewer than 25 percent of the calls they receive abandoned in FY 2017. According to the plan, “the Retirement Information Office provides a vital service that helps individuals navigate the pre- and post-retirement process, and honors the service of Federal employees. OPM continues to support customer service efforts and anticipates an improved process in addressing customer need.” Zawodny attributes some of the recent delays to budget challenges. Because of these, he explains, “Retirement Services has been unable to hire a sufficient amount of staff to answer calls at an acceptable level.” The increasing call volume, he says, is partially due to new factors. OPM expects and plans for call volume to be heaviest from November to mid-April. In November, Federal Benefits Open Season begins, and call volume increases. Call volume remains high in winter, as a result of the annual influx of end-of-year retirements, and begins to slow down in midApril, once the federal income tax filing deadline is past. In 2015 and 2016, however, calls about the two OPM data breaches (see the June 2016 issue of narfe magazine, p. 22) and the introduction of the Self Plus One option in the Federal Employees Health Benefits Program (FEHBP) also helped generate an increase in calls. Snell added that in 2015-16, NARFE members also called about the new IRS form 1095-B, verifying health insurance coverage, which is required to be sent to all retirees under the terms of the Affordable Care Act — although that form is not sent out by OPM. Zawodny outlines a number of actions OPM is taking to reduce call waiting times and dropped calls, and to reduce the turnaround time for calls and emails. Retirement Services, he explains, is currently hiring 20 new call center agents to increase their ability to handle more calls. In the president’s budget request for FY 2017, OPM asked for an additional $1.5 million in funding to hire even more staff who can respond to customer inquiries, and has made hiring more staff one of the
agency’s budget priorities. Zawodny’s department also has implemented what he calls “enhanced escalation processes” to improve the timeliness of its responses. It is providing technical training, cross training, mentoring and coaching to call center employees, “as resources allow.” And whenever possible, he adds, call center resources are reallocated to the busiest areas within the center, and overtime is offered. Ultimately, says Zawodny, “the only answer to improved service is additional staff.” Currently, he explains, about 80 people work in the call center, which recently moved to new offices in Butler, PA, about 20 miles from its former location at OPM’s massive underground Retirement Operations Center in Boyers, PA. Another 60 people would be needed, he estimates, to provide what he calls significantly better service, which he defined as decreasing the average wait time to only five minutes from the 20-minute level it has currently reached. The service has added additional phone lines in an attempt to reduce the number of busy signals people receive. However, OPM is leery of adding too many lines, because without sufficient staff, “that would make wait times intolerable.”
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WHAT CAN RETIREES DO?
ity service from call center employees. Said one OPM’s preference is clear: Federal retirees lookretiree: “The person on the other end was helping for answers to most questions involved with ful and courteous, actually friendly. I explained their retirement should neither call nor write, my question, she put me on hold for maybe but should use the agency’s Retirement Services half a minute, and then had an answer for me. Online web portal instead. She also told me where I could have found the Unlike the call center, which is open only answer on the OPM website, and that solved my between 7:40 a.m. and 5 p.m., Eastern time, problem. Easy in, easy out!” Monday through Friday (and, as OPM’s website Others agreed. “I’d say it was a good experinotes, its “business hours have changed due to ence, all in all,” emailed a recent retiree. “The budget cuts”), Services Online is available 24 call was not long, and the service person gave hours a day, seven days a week, and enables me the info I needed, as well as some general annuitants to take charge of their account withguidance. I remember thinking that I’d use the out a busy signal or long wait times. personal approach again if I needed to, but I Among the things retirees can do on the Serhaven’t needed to.” vices Online site are: And a third retiree, who has had extensive • View and print their 1099-R tax forms, dealings with the call center on questions dealannuity statements and verification of income ing with both her own and her parents’ retirestatements; their retirement services reference ment, explained her strategy for coping with (ID) card; and their life insurance verification waiting times. “I put (my phone) on speaker and forms; pick up my knitting or my laptop or whatever, so • Change their federal and state income tax waiting usually doesn’t bother me.” withholding information; mailing or email OPM has some additional advice for those address; or their Services Online password; who do not, or cannot, use computers. “From • Report a missing annuity payment or the May through October,” Zawodny says, “the best death of an annuitant; time to call Retirement Services is Thursday and • View the status of their case while they are Friday mornings. Other than that, calling early in interim pay status; in the morning or later in the afternoon are the • Make allotments to organizations; best times.” • Request a duplicate annuity booklet; An early Monday morning caller in May, • Set up a checking or savings allotment; however — not, according to Zawodny, a peak • Sign up for direct deposit of their annuity time – was told that the wait time for a response payments; and was “approximately 20 minutes,” the average • Opt in to receive information from OPM time cited by OPM. For three hours thereafter, electronically, instead of by mail. the caller received only repeated busy signals, “Although we agree that many of our cusafter which the wait time was estimated to be tomers prefer not to use a computer, or do not “approximately 37 minutes.” own one, we do focus on encouraging those Zawodny, however, has hope for the future. customers who are computer literate to handle “The additional resources (OPM is receiving) are basic transactions through our Services Online expected to improve average speed of answering site,” says Zawodny. “This will hopefully reduce customer phone calls and responding to emails. unnecessary calls and emails.” “Our customers can rest assured that RetireSnell agrees. “Much of the telephone and mail ment Services continues to work to improve our traffic could be eased by more retirees using services every day. We recognize the importance OPM’s Services Online,” he says. “But there are of our services, and appreciate all the feedback many who just want to pick up the phone and we receive, both positive and otherwise.” —EVERETT A. (EV) CHASEN IS A WRITER AND COMMUNICATIONS talk to someone.” CONSULTANT IN THE WASHINGTON, DC, AREA. HE RETIRED FROM An informal survey of retirees found that, THE FEDERAL GOVERNMENT AFTER 35 YEARS OF SERVICE. once the wait was over, most receive high qual34
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Managing Money
TURNING YOUR TSP INTO A LIFETIME OF INCOME
M
any federal retirees will rely on their Thrift Savings Plan (TSP) for income during retirement. While picking and managing your
TSP investments can be a challenge, navigating the available withdrawal options and deciding how to turn your TSP balance into a lifetime of income is no small feat either. Part of the planning process is having a realistic expectation of how much income your TSP will generate. To help with this, the TSP provides a monthly income estimate each year when it generates participants’ annual TSP account statements. Take note, though, of the assumptions used in this estimate. For example, the monthly income estimate assumes you choose the single life annuity option and elect level payments with no additional features. The estimate also assumes you use your TSP balance, as reported on the annual statement, to purchase and start the annuity at age 62 (or your current age if older). There’s nothing wrong with this approach; assumptions must be made when forecasting. But you need to understand them and how they relate to your specific circumstances. For starters, not only are there many options and features to choose from when electing the annuity (all of which will im-
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pact the amount of monthly income you’ll ultimately receive), the life annuity is only one of several full-withdrawal options you’ll have available once you separate from service. You’ll also have the option to elect a single payment, or a series of monthly payments (either based on your life expectancy or a specific dollar amount). Additionally, you could elect a mixed withdrawal, combining any two, or all three, of the available full-withdrawal options. When planning for retirement, and the eventuality of generating income from your TSP account, you’ll need to understand how electing a different withdrawal option may produce more or less income than what’s estimated on your annual TSP statement. We’ll address the various annuity options and the tradeoffs you’ll need to consider in another article. But first, we’re going to take a closer look at the assumptions used to generate the estimated monthly income, and discuss what you can do to
BY MARK A. KEEN
CFP®
create a more accurate estimate specific to your circumstances. Since the TSP uses the balance as reported on the annual statement, the estimated income doesn’t reflect the impact of any investment returns or any additional contributions made to your TSP account. This means the longer you have until retirement, the less accurate the estimate likely will be. Having said that, the TSP provides a number of tools geared toward helping you plan for retirement, including calculators you can use to produce a more accurate annuity estimate. The calculators can be found at www.tsp.gov/ PlanningTools/index.html. The first step is estimating how much your TSP might be worth when you retire (and, in turn, how much you’ll have available to purchase an annuity). For this, you’ll want to use the “How Much Will My Savings Grow?” calculator. You can use this calculator to estimate a future TSP balance, taking into consideration contributions (including any government matching contributions) and growth assumptions. Besides the amount of money you invest to purchase the annuity, there are several other factors that will affect the amount of monthly income you’ll receive, including whether you elect a single life annuity,
BENEFITS RESOURCES NARFE offers members a wide range of information on federal benefits. Visit www. narfe.org/federalbenefits and www.narfe.org/ FederalBenefitsInstitute.
a joint life annuity, the “interest rate index,” and your age at the time of purchase (and joint annuitant’s age if choosing a joint annuity). As previously mentioned, the projected monthly annuity income assumes you purchase and start the annuity at age 62, or your current age if older. Using the TSP balance you projected in step one, the next step is to use the “Retirement Income Calculator” (which also can be found on the TSP’s
website) to produce an annuity estimate based on an age you want to start the income. In addition to the options noted above, there are many other features you can elect when purchasing the annuity. Generally speaking, the single life annuity, as quoted on the annual statements, will provide the largest monthly annuity payment. The Retirement Income Calculator also can be used to illustrate the impact the various options and features will have on the annuity payment. In my October column, we’ll look at the annuity options and features, and the tradeoffs you’ll need to consider when deciding on a TSP withdrawal option. 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.
What Every Fed Ought to Know About Their Benefits FREE for NARFE Members in the NARFE Federal Benefits Institute
You are just a click away from expert guidance on the confusing issues surrounding federal benefits and retirement. Access these online resources, exclusively for NARFE members. READY-TO-VIEW WEBINARS TO HELP YOU: PREPARE FOR RETIREMENT What You NEED to Know MANAGE YOUR HEALTH BENEFITS Understand the Options and Save! AVOID FINANCIAL PLANNING PITFALLS Get Smart about theTSP and Social Security
Not a member? Join NARFE today to
access all NARFE Federal Benefits Institute resources and events: www.narfe.org/join.
NARFE Federal Benefits Institute
New!
Federal benefits expert Tammy Flanagan presents three new NARFE webinars this fall.
Post Retirement – Stay Active With Your Benefits September 15, 2 p.m. ET
FEHBP and Medicare October 13, 2 p.m. ET
The Alphabet Soup of Health Plans November 17, 2 p.m. ET
Tammy Flanagan, nationally recognized federal benefits expert and NARFE member, helps you take control of your future with straightforward guidance on complex federal benefits.
www.NARFE.org/Institute
W W W. N A R F E . O R G
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37
The Informed Citizen
STATE GOVERNMENT NEWS
S
tatehouse coverage is hard to find. The Pew Charitable Trusts reports, “the relatively small pool of reporters covering state governments has been drying up over the past decade.” However, there are sources to use as a partial substitute – much of the content is free via web publishers. Here are some of the best for NARFE members who seek to be informed citizens and NARFE advocates. Start with NARFE’s LAC NARFE’s Legislative Action Center (LAC) is the starting point. The LAC (http:// cqrcengage.com/narfe/State_ Advocacy) now provides listings and links for local elected officials when you insert your full address. Chapter newsletters often include some of these officials. Aided by the addition of local officials to this important member resource, NARFE members can build relationships with all elected officials so that one is already in place when any elected official first runs for Congress. Building transferable relationships is the essence of branding. Other Valuable Resources Stateline (www.pewtrusts.org/ stateline) provides daily reporting and analysis on trends in state policy. On its website, it boasts, “since its founding in 1998, Stateline has maintained a commitment to the highest standards of nonpartisanship, objectivity, and integrity. Its team of veteran journalists com-
38
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bines original reporting with a roundup of the latest news from sources around the country. Stateline focuses on four topics that are key to state policy: fiscal and economic issues, health care, demographics, and the business of government.” Governing (www.governing. com/subscribe/newsletters) is a monthly magazine, available in print and on the web, targeting state and local politics and policy. Governing also produces a wide variety of free newsletters covering aspects of state and local government. Some are daily (five issues per week) and others are weekly. Each is completely free and, like each of these freebies, you can discontinue delivery at any time. Ballotpedia (www. ballotpedia.org), begun in 2007, provides “new areas of coverage, performing in-depth analyses, and developing new tools to help keep our readers in the know.” Ballotpedia also offers newsletters emailed to subscribers once a week. The Federal Tap covers federal courts, Congress,
BY CHRISTOPHER FARRELL SENIOR ANALYST
policy news and the presidential race. The State and Local Tap covers important happenings in the state executive and state legislative branches, as well as state courts and ballot measures. You can sign up to receive The Tap in your email inbox free of charge every Saturday. Election Forecasting Crystal Ball (www.center forpolitics.org/crystalball/) provides election coverage and predictions for congressional, presidential and gubernatorial elections. Professor Larry Sabato and his colleagues at the Crystal Ball, part of the University of Virginia’s Center for Politics, have an enviable record for accuracy. Policy Shops on the Right and Left Finally, both ends of the political spectrum have organizations eager to provide their positions on important issues in state and local government. On the right, the American Legislative Exchange Council (www.alec. org) and on the left, the Center on Budget and Policy Priorities (CBPP) (www.cbpp.org) provide ideological and partisan activists with information. CBPP has kindred groups in 41 states. (www. statepriorities.org) providing hyperlocal news and information.
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Alzheimer’s Update
ALZHEIMER’S FINANCIAL IMPACT ON FAMILIES
A
lzheimer’s disease is one of the costliest diseases to society. By 2050, this disease is projected to cost more than $1 trillion (in 2016 dollars). In 2016, total pay-
ments for health care, long-term care and hospice are estimated to be $236 billion for people with Alzheimer’s and other dementias. Medicare and Medicaid are expected to cover $160 billion of the total health care and long-term care payments. When people do not know what Medicare, Medicaid and long-term care insurance will provide, they may be unprepared for the high costs of long-term care for a person with Alzheimer’s disease or another dementia. It is important that individuals and families become educated about the financial resources available to them and use that information to plan for the future. The Alzheimer’s Association commissioned a nationwide survey to study the financial impact of Alzheimer’s disease on families. They found that many caregivers put off their own medical care, sold their cars to raise money, drew from funds meant for their kids’ education and even cut back on food to support a loved one with Alzheimer’s. On average, the report found caregivers spent more than $5,000 a year of their own money to care for someone with Alzheimer’s disease, but amounts varied widely and some spent far more. The survey also noted that many thought Medicare paid for 40
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nursing home care. Medicare pays for inpatient hospital care, physician-certified inpatient rehabilitation in a skilled nursing facility after a hospital stay and various other costs, but custodial care in nursing homes is not covered. Many thought that Medicaid was long-term care insurance. Medicaid helps pay for some medical and long-term care costs for people with limited income and resources and, in most instances, individuals must have depleted nearly all of their assets to be eligible for Medicaid. The study also found that many families were unprepared for the cost of Alzheimer’s care. At least 30 percent of the caregivers thought they had purchased long-term care insurance when only 3 percent had the insurance. Others thought the government would provide it. When it comes to those caring for Alzheimer’s patients, the report showed sacrifices may include: • Cutbacks in personal spending. Almost 48 percent
BY MERV STUCKEY NARFE-ALZHEIMER’S CHAIR
of the relatives or friends caring for Alzheimer’s patients said they have decreased their own personal spending and needs over the past year, or have drawn from savings and retirement accounts, to scrape together money needed for care expenses. • Hunger. Almost a third said they ate less, and one out of five reported they sometimes went hungry because they didn’t have money for food. • Going without medical care. Twenty percent cut back on their own doctor visits. • Selling personal effects. Thirteen percent sold personal belongings, typically a vehicle, to help cover the patient’s needs. • Swallowing up education savings. Eleven percent had to pull back on spending for a child’s education. • Income loss. More than one-third lost income (an average of $15,194 compared to the previous year) due to reduced work hours or stopping work altogether in order to meet caregiving demands. There were 15.9 million family and friends providing 18.1 billion hours of unpaid care in 2015 to Alzheimer’s patients and others with dementia – care valued at an estimated $221.3 billion. MERV STUCKEY IS CHAIR OF THE NARFEALZHEIMER’S NATIONAL COMMITTEE. EMAIL: NARFEROADRUNNER@COMCAST.NET. THIS COLUMN APPEARS QUARTERLY.
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
mm
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)
2016
G FUND
F FUND
C FUND
S FUND
I FUND
JULY
0.13%
0.64%
3.69%
5.40%
5.07%
JUNE
0.15%
1.80%
0.26%
-0.13%
-3.33%
MAY
0.15%
0.08%
1.80%
1.81%
0.27%
YTD
1.06%
6.17%
7.70%
8.26%
1.46%
1 YEAR
1.95%
6.30%
5.68%
0.25%
-7.17%
3 YEAR*
2.12%
4.74%
11.24%
8.21%
2.34%
5 YEAR*
1.91%
3.92%
13.45%
11.58%
3.36%
10 YEAR*
2.76%
5.30%
7.81%
8.59%
2.24%
L INCOME
L 2020
L 2030
L 2040
L 2050
2016
*ANNUALIZED
JULY
1.00%
2.01%
2.85%
3.31%
3.74%
JUNE
0.11%
-0.12%
-0.31%
-0.43%
-0.58%
MAY
0.38%
0.69%
0.91%
1.03%
1.15%
YTD
2.47%
3.67%
4.64%
5.13%
5.48%
1 YEAR
2.37%
1.73%
1.77%
1.55%
1.17%
3 YEAR*
3.69%
5.49%
6.42%
6.98%
7.40%
5 YEAR*
3.92%
6.57%
7.80%
8.61%
9.23%
10 YEAR*
4.05%
5.32%
5.89%
6.20%
N/A
*ANNUALIZED
RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP (For additional monthly returns, go to www.tsp.gov.) G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)
OPM RETIREMENT CLAIMS PROCESSING STATUS
Stock market results were positive in July as the recovery continued from the UK’s recent vote to leave the European Union, and market participants believed that central banks around the world would continue to try to stimulate economic growth. July U.S. economic data began on a positive note, helped by a strong employment report. The C, S and I Funds all had solid gains for the month. The F Fund’s returns were positive as well. All of the L Funds had positive returns, due largely to equity market gains. —BY SEAN MCCAFFREY, ACTING CHIEF INVESTMENT OFFICER, THRIFT SAVINGS PLAN
COUNTDOWN TO COLA
T
he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.37 percent in June. To calculate the 2017 cost-of-living adjustment (COLA), the indices of July, August and September 2016 will be averaged and compared with the 2014 third-quarter average of 234.242. The percentage increase, if any, determines the COLA. June’s index, 235.308, is up 0.46 percent from the base. Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W. June’s index is 1.96 percent higher than the December 2015 base index of 230.791. The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes. MONTH
2015
2016
For the Record
FUNDS SHOW POSITIVE GAINS AS MARKET RECOVERY CONTINUES
THRIFT SAVINGS PLAN FUND RETURNS
Claims Received
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE
9,862 7,341 6,300 8,374 6,019 4,753 15,423 11,293 5,741 7,241 7,210 5,929
Inventory Avg # of Days (Steady State % Processed in to Process Case in is 13,000) 60 Days or Less (YTD) More Than 60 Days
16,455 16,350 14,706 12,642 12,562 11,399 19,761 22,692 19,211 14,517 14,035 13,529
69% 70% 70% 74% 76% 78% 79% 80% 82% 80% 80% 79%
97 98 94 86 98 104 94 96 118 92 103 115
FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. Source: OPM 42
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CPI-W
Monthly % Change
% Change from 234.242
OCTOBER 2015
232.373
-0.12
-0.80
NOVEMBER
231.721
-0.28
-1.08
DECEMBER
230.791
-0.40
-1.47
JANUARY 2016
231.061
+0.12
-1.36
FEBRUARY
230.972
-0.04
-1.40
MARCH
232.209
+0.54
-0.87
APRIL
233.438
+0.53
-0.34
MAY
234.444
+0.43
+0.09
JUNE
235.308
+0.37
+0.46
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 June 30, 2016 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) EMAIL: narferoadrunner@comcast.net
$11,889,336* 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: State: ZIP: 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.
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
CONVENTION LIVE!
WINNING IMAGES
W
atch your mailbox for the Driver, Glenwood, MD, Chap. 1734; 2017 NARFE Calendar! Ronald Fanelli, Chester County, Featuring the winners in PA, Chap. 377; Lynn Fucarino, the Association’s annual photo conTampa, FL, Chap. 1154; Jasmine test, the calendar is NARFE’s premier Krotkov, Neihart, MT, Chap. 2363; general fundraiser. Howell K. Lucius, Cumming, GA, Winning photographers are: Jan Chap. 1750; Robert C. Peterson, Bohling, Aberdeen, SD, Chap. 584; Summerville, SC, Chap. 1082; MarRobert Castleton, Libertyville, cia Socolik, Henderson, NV, Chap. IL, Chap. 244; Stuart DeWitt, 2031; Gary Stroz, Middletown, Life Membership Apl_New Design 1 1533; Linda Suchocki, Mooresville, NC, Chap. 720;3/26/13 Carol3:49 PM NJ,Page Chap.
Many of the sessions during the August 28-September 1 NARFE National Convention in Reno, NV, will be streamed live over the internet. Members must register and pay $150 for access. To find out more, go to www.narfe.org/ Convention2016. The daily bulletin, recapping the action of the previous day, also will be available on the site at no cost.
Buffalo, NY, Chap. 153; Dennis N. Taylor, Riverside, CA, Chap. 1088; Jacquie Tinker, Valley Falls, NY, Chap. 2363; Jordan Tuller, The Villages, FL, Chap. 1372; William Witmer, Lakewood, CO, Chap. 1085. Deadline for the 2017 photo contest is April 15, 2017. For information, go to www.narfe.org; log in and click on Special Programs.
NARFE NATIONAL LIFE MEMBERSHIP APPLICATION Life Membership Fee Schedule Ages
Contact Information n Mr. n Mrs. n Miss n Ms. Full Name _____________________________________________ Street Address _________________________________________ Apt./Unit______________________________________________ City _______________________ State _____ ZIP _____________ Phone (__________) ____________________________________ Email_________________________________________________ Date of Birth _________ /_________ /___________________ dd
mm
yyyy
Recruiter ID # (if applicable) _________________________________ Chapter Number _______________________________________ (call 800-456-8410 for chapter information) Membership Information Member Number: ______________________________________ (New members) Membership is open to civilians in any agency of the federal or D.C. (before Oct. 1, 1987) governments eligible for a federal annuity.
Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin. Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes. 44
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Single or Quarterly Payment Installments 30-39 $1,796 $450.25 40-50 1,408 353.25 51-55 1,127 283.00 56-60 960 241.25 61-65 801 201.50 66-70 653 164.50 71-75 514 129.75 76-80 392 99.25 81-90 251 64.00 91-100+ 127 33.00
I am a (check all that apply) n Active Federal Employee n Active Federal Employee Spouse n Annuitant n Annuitant Spouse n Survivor Annuitant
PAYMENT INFORMATION n Single Payment or n Quarterly Installments (4 payments) Life Membership fee amount: $ ______________________ PAYMENT OPTIONS n Check or Money Order (Payable to NARFE) n Charge my: n MasterCard n VISA n Discover n American Express Card No. __________________________________________ Expiration Date _________ /_________ mm
yyyy
Name on Card ______________________________________ Signature ____________________________ Date ________ MAIL THIS APPLICATION TO NARFE Member Records 606 N. Washington St. / Alexandria, VA 22314-1914
Active and Retired Federal Employees ...
JOIN NARFE TODAY!
National Active and Retired Federal Employees Association The only organization dedicated solely to protecting and preserving the benefits of all federal workers and retirees, NARFE informs you of any developments and proposals that affect your compensation, retirement and health benefits, AND provides clear answers to your benefit questions.
Who Should Join?
Three Easy Ways To Join
If your future security is tied to federal retirement benefits — 1. Complete this application and return by mail with your payment. federal retirees, current employees, spouses, and individual 2. Join online at www.narfe.org. survivors — you should join NARFE. 3. Call 800-627-3394, Monday through Friday, 8 a.m. to 5 p.m. ET.
NARFE MEMBERSHIP APPLIC ATION
1Q5
q YES. I want to join NARFE.
I am a (check all that apply) q Active Federal Employee q Active Federal Employee Spouse q Annuitant q Annuitant Spouse q Survivor Annuitant
Street Address _____________________________________
Apt./Unit __________________________________________
q Please enroll my spouse
City _______________________ State _____ ZIP __________
Spouse’s Full Name ________________________________
Phone (__________) _________________________________
Spouse’s Email
q Mr. q Mrs. q Miss q Ms.
Full Name _________________________________________
Email _____________________________________________
Choose Your Membership Type
All NARFE members receive narfe magazine, access to federal benefits specialists, NARFE’s News Watch, legislative Hotline, and exclusive member discounts, along with professional lobbyists advocating on your behalf. Members choose one of two chapter options.
q Local Chapter
Under the direction of local leadership, chapters offer regular meetings often with invited speakers, as well as networking, volunteer and grass-roots lobbying opportunities. Annual chapter dues, determined by the locality, are charged in subsequent years.
Chapter Affiliation: Chapter # __ __ __ __
_____________________________
NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties without your express permission.
PAYMENT OPTIONS q Check, Money Order or Bill Pay (Payable to NARFE) q Bill me (NARFE membership will start when payment is received.) q Charge my: q MasterCard q VISA q Discover q American Express Card No. ____________________________________ Expiration Date _____ /_________ mm yyyy Name on Card ________________________________
OR
Signature ____________________________________
q eNARFE
Date ________________________________________
The eNARFE Chapter provides a place for members to keep active in and informed about the federal community without the formality of a local chapter. Advocacy is encouraged within the e-community, and members may join with local groups for grass-roots participation. There are no additional dues for the eNARFE Chapter.
TOTAL DUES $40 First-Year Dues X __________ = __________ Per Person # Enrolling Total Dues
Dues payments and gifts or contributions to NARFE are not deductible as charitable contributions for federal income tax purposes.
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
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 AND LEGAL
IDShield & LegalShield 571-830-5489 www.legalshield.com/info/narfe LegalShield offers legal service plans as well as identity theft protection plans to NARFE members at discounted monthly rates. For more information on rates and to sign up today, visit the website above.
to secure a comparable quote. Your completed quote will help benefit NARFE! For complete terms and conditions, visit www.narfe.org/memberperks.
NARFE Insurance Services 800-233-5764 www.narfeinsurance.com
NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.com
Designed and administered by Mercer Consumer, 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 care, enhanced dental insurance and long-term care.
As the official provider of NARFE merchandise, the NARFE General Store offers NARFE-approved name badges, business cards, clothing, accessories, cups and mugs, plaques and clocks, and much, much more. Check out our online catalog for our customizable product line.
MOVING SERVICES
InFirst Federal Credit Union 800-328-1500 www.infirstfcu.org
All NARFE members will receive contracted pricing for all interstate shipments. This will apply to packing, transportation and full-value coverage against damages. Please mention you are a NARFE member.
INSURANCE
Wheaton World Wide Moving 800-248-7960 narfe@wvlcorp.com
GEICO offers a special discount opportunity for NARFE members. To find out how much you could save, visit our website or call today and mention that you are a NARFE member. Have your current coverage information available in order 46
Bekins Van Lines 800-248-4810 narfe@bekins.com
As a member of NARFE, you have the privilege of joining InFirst Federal Credit Union, which has been serving active and retired federal employees since 1935. The credit union offers extensive services at competitive rates to members nationwide at 5,000+ shared branches, 55,000 surcharge-free ATMs and 24/7 phone access. Accounts are insured by NCUA up to $250,000.
GEICO 800-368-2734 www.geico.com/fed/narfe
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NARFE MERCHANDISE
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 experience. Call today and mention you are a NARFE member to start the moving process.
PRODUCTS
Omaha Steaks 800-228-9055 www.omahasteaks.com/ NARFE Since 1917, Omaha Steaks has been delivering customers the finest gourmet steaks, seafood, poultry, pork, sides and desserts. Omaha Steaks make memorable gifts for any holiday, or you can enjoy a gourmet meal right at home. NARFE members can enjoy FREE SHIPPING on select combos and an additional 10% DISCOUNT at checkout! If calling, use promo code YTZ.
TELECOMMUNICATIONS
Sprint 877-746-8249 www.sprint.com/fed NARFE members receive a 15% discount with Sprint! Access www.sprint. com/fed, call 877-746-8249 or visit the Sprint store nearest you to take ad-
vantage of this offer. Please bring your member ID card with you to our stores to sign up for the discount, and provide code GNARF_ZMB.
with approximately 3,500 locations around the world, Budget is a leading rental car supplier now offering discounts to members of NARFE. Call or book your reservation now at Budget. com using the NARFE BCD number D871500.
Verizon FiOS www.narfe.org/memberperks NARFE members can save up to $10 a month on a new qualifying Triple Play bundle with Verizon FiOS Internet, TV and home phone service – savings of up to $120 per year. The FiOS 100% fiberoptic network delivers award-winning broadband and entertainment to your home. Only FiOS Internet customers get upload speeds as fast as their download speeds. With FiOS TV, 625+ channels are available, including 185+ in HD, and over 130,000 On Demand titles, thousands free. This exclusive online-only savings is only available to new Verizon customers or those upgrading to the Triple Play Package.
TRAVEL
Wyndham Hotel Group 877-670-7088 Choice Hotels International 800-258-2847 www.choicehotels.com With 6,200 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. 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 through phone number or website above; cannot be redeemed at individual hotels. Choice Hotels brands are: Comfort Inn, Comfort Suites, Sleep Inn, Ascend Collection, Cambria, MainStay Suites, Suburban, EconoLodge, Clarion, Quality and Rodeway Inn.
Alamo 800-462-5266 www.alamo.com Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call or visit our website today and reference Contract ID 262544.
Avis Car Rental 800-633-3469 www.avis.com Avis Car Rental is one of the world’s best-known car rental brands with approximately 5,500 locations in more than 165 countries. Avis has a long history of innovation in the car rental industry and is one of the world’s top brands for customer loyalty. Call or book your reservation now at Avis.com using the NARFE AWD number A701900.
Budget Car Rental 800-633-3469 www.budget.com Budget Car rental was founded in 1958 for the “budget-minded” renter. Today,
5282909. For complete terms and conditions, visit www.narfe.org/ memberperks.
NARFE members 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. Call to reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®. Advance reservations required through phone number above; cannot be redeemed at individual hotels.
WELLNESS
Beltone Hearing Care 888-418-6763
Local Hospitality www.narfe.org/travel NARFE is pleased to offer its members an exclusive travel discount service. Savings may exceed 50% and average 10-20% below market on all hotels and car rental suppliers around the world. Any hotel, any car, anywhere, anytime!
Beltone has been helping the world hear better for 75 years. NARFE members receive 25% off, and those with Blue Cross Blue Shield Service Benefit Plan insurance coverage may be eligible for two Beltone True 3™ hearing aids for ZERO out-of-pocket.
Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE National 800-CAR-RENT www.nationalcarrental.com 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
Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-ofthe-art ultrasound technology in your neighborhood. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website.
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
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The Way We Worked
GAVEL-TO-GAVEL COVERAGE In this 1938 photo, Architect of the Capitol David Lynn (right) supervises E.S. Kenyon, who is making gavels in the Capitol’s machine shop. The gavels were intended for Speaker of the House William Bankhead to use in the 76th Congress (1939-1941). Speakers tended to go through multiple gavels during a Congress. Today, workers at the in-house carpentry shop in the Capitol continue to manufacture gavels for the Speaker and committee chairs. PHOTO from the Collection of the U.S. House of Representatives; courtesy of Felicia Wivchar, assistant curator of the House of Representatives; 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. 48
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DID YOU KNOW? The staff of the Architect of the Capitol (AOC) numbers about 2,300 federal employees who apply “both modern techniques and historical tradecrafts in the care and preservation of the Capitol Campus,” according to the AOC website, www.aoc. gov. The AOC is responsible for the Capitol, House and Senate office buildings, Supreme Court, Library of Congress, U.S. Botanic Garden and other Capitol-area landmarks.
A
B LL Bu ig -NE tt ge W on r s
s o N ac t r nt Co
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IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. Plans and Services require purchase of a Jitterbug phone and a one-time setup fee of $35. Monthly fees do not include government taxes or assessment surcharges and are subject to change. Coverage is not available everywhere. 5Star or 9-1-1 calls can only be made when cellular service is available. 1We will refund the full price of the Jitterbug phone and the activation fee (or setup fee) if it is returned within 30 days of purchase in like-new condition. We will also refund your first monthly service charge if you have less than 30 minutes of usage. If you have more than 30 minutes of usage, a per minute charge of 35 cents will be deducted from your refund for each minute over 30 minutes. You will be charged a $10 restocking fee. The shipping charges are not refundable. There are no additional fees to call GreatCall’s U.S.-based customer service. However, for calls to a GreatCall Operator in which a service is completed, you will be charged 99 cents per call, and minutes will be deducted from your monthly rate plan balance equal to the length of the call and any call connected by the Operator. Jitterbug and GreatCall are registered trademarks of GreatCall, Inc. ©2016 GreatCall, Inc. ©2016 firstSTREET for Boomers and Beyond, Inc.
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