October 2015 NARFE Magazine by NARFE

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COVER STORY

Phased Retirement Slow Pace of Adoption Frustrates Outbound Feds

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Volume 91 • Number 10

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Sorting out Medicare options

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OPen Season: Prepare, compare

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geico.com/fed/narfe 1-800-368-2734 | Local Office Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. Discount amount varies in some states. One group discount applicable per policy. Coverage is individual. In New York a premium reduction may be available. GEICO is a registered service mark of Government Employees Insurance Company, Washington, D.C. 20076; a Berkshire Hathaway Inc. subsidiary. GEICO Gecko image © 1999-2014. © 2014 GEICO

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WashingTon Watch

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NARFE Supports New Retirement Advice Rule

Big Increase in Part B Premiums for Some?

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VA ‘Reforms’ Pass House CPI-E Bill Reintroduced Anti Annuity Fraud Bill Passes in Senate

10 OPM Data Breach Update 10 LTC, Life Insurance Premiums to Change

Advocates: Keep Pressure on Lawmakers

12 NARFE Bill Tracker 14 Temporary Employee Bill Signed Into Law

Cover Story phased retirement. More than three years after Congress approved the program, agencies have been slow to adopt it, frustrating outbound federal employees. Here’s a status report.

34 sorting out medicare options. When feds turn age 65, they are faced with multiple choices for health insurance. Take a look at the options.

visit us online at:

16 Questions & Answers 48 For the Record: TSP

Returns, Retirement Claims Status, Countdown to COLA

40 Open Season Report:

Prepare and Compare

like us on facebook:

@narfehq

DEPARTMENTS

special section

www.narfe.org

4 From the President 44 Managing Money 46 The Informed Citizen

50 NARFE News 56 The Way We Worked

On the Web

NARFE National Headquarters

Columns

ON THE COVER

Illustration by Bill Pragluski, Critical Stages, LLC

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october 2015 | Volume 91 | Number 10

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

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

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

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

REGIONAL VICE PRESIDENTS

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

Here’s How to Contact Us… to join NARFE:

Call (toll-free) 800-627-3394 OR GO TO www.narfe.org To change your mailing address, phone number or email address:

CALL (TOLL-FREE) 800-456-8410, EMAIL memberrecords@narfe.org OR LOG ON TO www.narfe.org and go to “My Account”

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: hlz17@aol.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) Tel: 360-692-9741 Email: lannyjean@comcast.net REGION X William Shackelford (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 703-830-6590, CELL: 703-201-6304 Email: wshack1951@aol.com

For any other NARFE matter:

Call NARFE Headquarters 703-838-7760, Email hq@narfe.org, Fax 703-838-7785, or Write NARFE 606 N. Washington St. Alexandria, VA 22314

www.narfe.org

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

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From the President

Fighting for your benefits

f the advocacy efforts of NARFE and its partners can be likened to a boxing match, then this Association has done

very well in the ring.

Round one this year was the successful NARFE and coalition partners’ fight to protect the federal community’s benefits in the budget process. Round two was the again successful fight to ensure that a proposal to drastically cut the rate of return on the Thrift Savings Plan’s G Fund was not included in the Highway Trust Fund’s reauthorization. In the end, only a shortterm highway funding bill was passed; so that threat, unfortunately, remains. As you read this in late September, we will be in round three as Congress is faced with a deadline for funding the government for fiscal year 2016. In addition, as mentioned above, the highway bill will need to be renegotiated, and the debt ceiling must be raised in the next few months.

All of these issues will place the items previously identified in the budget process as potential “savings” back into the legislative process; they now will be described as “pay-fors” or “offsets.” No matter the name, if enacted, they could dramatically affect the federal community. The NARFE Legislative Department and our coalition partners are working diligently to prevent provisions affecting federal employees and retirees from being included in this legislation. You have responded overwhelmingly to requests for action in the past. Please continue to do so. We also are working with the Office of Personnel Management and others to ensure that the rollout of the new Self Plus One option in the Federal Employees Health Benefits Program is well publicized, so that everyone who is eligible is made aware of this long-sought opportunity. As the great philosopher Yogi Berra (a pretty good baseball player, too) once said, “It ain’t over ’til it’s over.” The same can be said for this year’s legislative activities. The contest continues between NARFE and some in Congress who would like nothing more than to deliver a knockout punch against the Association’s efforts to thwart their agenda. We ask all of you sitting ringside to do more than cheer us on – put on your gloves and win a few rounds of your own by remaining vigilant and active.

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

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Washington Watch

NARFE Testifies on rule to protect retirement savers from bad advice

ARFE President Richard G. Thissen testified August 12 before the Department of Labor (DOL) in support of its proposal to update the definition of “fiduciary investment

advice” under the Employee Retirement Income Security Act (ERISA). The change is designed to make sure individuals saving for retirement are protected by a “best interest standard” when receiving investment advice.

“If finalized, the rule should result in better investments and lower fees and, therefore, lead to greater returns on the hardearned retirement savings of millions of Americans,” Thissen said. Currently, investment advisers providing advice regarding whether to roll over a 401(k) or Thrift Savings Plan (TSP) account into an individual retirement account (IRA) or how to invest money within an IRA are not subject to a fiduciary standard. Rather, they are subject to a weaker “suitability” standard. Much of Thissen’s testimony focused on NARFE’s concern that federal employees and retirees, and military personnel, invested 6

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in low-fee TSP funds currently are not adequately protected from bad financial advice. “Because rollovers are not covered by the existing definition of fiduciary investment advice, financial advisers may legally recommend that account holders roll over their TSP holdings into an IRA, where the money could be invested in mutual funds providing the same, or essentially similar, products,” he explained. “For example, money could be moved to an S&P 500 index fund, for as much as 20 times the cost of the C Fund, the TSP’s S&P index fund.” Thissen said more than 50 percent of TSP participants remove

NARFE President Thissen, right, testifies, as Caleb J. Callahan of the Association for Advanced Life Underwriting, left, and Joe Wimpee of Farmers Insurance and Farmers Financial Solutions, listen.

Photo by Mike Theiler

their money from the TSP upon separation from service, despite the fact that, in most cases, it is better to leave the money in the TSP, which offers very low administrative fees compared to privatesector alternatives. “In many cases, financial industry representatives claim they support a best interest standard in one breath, only to reject the idea of implementing it in the next,” he said. “Americans who have worked hard to save for retirement deserve investment advice that puts their financial security first.” DOL proposed the rule February 23. It held four days of public hearings in August in Washington, DC, on the rule and related exemptions. The public hearings followed the close of an initial comment period. NARFE also submitted written comments during the comment period. DOL will accept additional comments following the public hearings before finalizing a rule or exemptions. —By John Hatton, Deputy Legislative Director

50 PERCENT INCREASE IN PART B PREMIUMS IN 2016 POSSIBLE FOR CSRS RETIREES

ccording to the 2015 Medicare Trustees Report issued in July, Medicare Part B premiums could increase by more than 50 percent in 2016 for some beneficiaries while others would be protected from premium increases, due to the interaction of inflation with a specific provision of Medicare law. Federal retirees who do not have Medicare Part B premiums deducted from a Social Security check would be among those getting the increase. Under Medicare’s “hold harmless” provision, most seniors are protected from a reduction in their Social Security benefits when Medicare Part B premium increases are greater than the cost-of-living adjustment (COLA) in their Social Security benefits. That may happen in 2016 because of the current year’s low inflation. But the hold harmless provision interacts, unintentionally, with the Department of Health and Human Services’ interpretation of another provision of the Medicare law. That provision requires that 25 percent of the cost of Medicare Part B must come from premiums. So Medicare enrollees who do not receive Social Security benefits must shoulder the full burden of ensuring total premiums account for 25 percent of the costs of Part B. This affects about 30 percent of Medicare enrollees, including Civil Service Retirement System (CSRS) retirees and state

government retirees who are not covered by Social Security. Without the effect of the hold harmless provision, Medicare Part B premiums would be expected to increase from $104.90 per month to $120.70 per month. But if there is no COLA, premiums are expected to increase to $159.30 per month for the 30 percent of enrollees who are not held harmless. Even if there is a small COLA, if it is not enough to cover the increase in Part B premiums, the hold harmless provision still will prevent a full increase in Part B premiums for some individuals and force those who are not held harmless to shoulder the remaining burden. The inflation measure for July was 0.2 percent below the level needed to trigger a 2016 COLA to Social Security benefits (and federal retirement annuities). Consumer Price Index figures from July, August and September will determine whether there is a COLA. Individuals affected by the projected premium increase include: new Medicare enrollees in 2016 (2.8 million); individuals not collecting Social Security benefits or only collecting minimal Social Security benefits, including 1.6 million federal retirees covered by CSRS with insufficient private-sector earnings; and 3.1 million beneficiaries already paying higher, incomerelated premiums. Nine million beneficiaries dually eligible for

Medicare and Medicaid also are subject to the higher premiums, but state Medicaid programs will bear this cost. This same problem arose for 2010 and 2011 premiums, to a lesser, but still significant, extent. Legislation to fix the problem passed the House in September 2009, but did not get a vote in the Senate. NARFE began outreach to seek introduction of similar legislation and, at press time in late August, was hopeful that legislation would be introduced upon Congress’ return from its August recess. —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

VA ‘reforms’ pass house, deny Feds due process

hortly before adjourning for its August recess, the House of Representatives approved legislation that would establish a new set of rules governing employees of the Department of Veterans Affairs (VA), severely limiting civil service due process protections. Passage came on a mostly party-line vote of 256-170, with most Republicans voting for it and most Democrats against. Arguing that few people have been held accountable for the VA hospital patient wait-time scandal that rocked the agency, House Veterans’ Affairs Committee Chairman Jeff Miller, R-FL, lauded VA employees on the whole as “dedicated and hardworking.” Despite this, he argued that the Department’s history of transfer-

ring problem employees or putting them on administrative leave made his legislation, H.R. 1994, necessary. The bill closely mirrors legislation signed into law last year affecting only senior executives at the VA. H.R. 1994 contains several provisions drawing fire from representatives not only of VA employees but all federal employees, particularly one providing expedited procedures for removal of poor performers. The employee groups consider this a slippery slope to more widespread use. While the president signed the law limiting the rights of senior executives at the VA last year, the White House issued a Statement of Administration Policy that threatened a veto of this legislation by the president because of

MYTH vs. REALITY Myth: It is impossible to fire federal employees. Reality: Over fiscal years 2000-2014, 77,000 federal employees were fired for performance or conduct issues, according to the Merit Systems Protection Board.

the significant impact the measure could have on the VA’s ability to retain and recruit qualified professionals. While Senate action is currently uncertain, this legislation sets the stage for such “accountability reforms” to be extended throughout the federal government. NARFE opposed the legislation and will score the vote as part of its voting scorecard for the 114th Congress. —By Alan Lopatin, legislative counsel

CPI-E Bill reintroduced in the House

ep. Mike Honda, D-CA, introduced legislation that would require the use of the Consumer Price Index for the Elderly (CPI-E) instead of the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to determine annual cost-of-living adjustments (COLAs) for Social Security benefits, federal and military annuities, and certain veterans’ benefits. The CPI-E Act of 2015, H.R. 3341, was introduced in late July. NARFE has long advocated using the CPI-E as the measurement for setting federal annuity COLAs. The current measure for calculating COLAs, the CPI-W, fails

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to accurately reflect changes in consumer prices experienced by seniors, particularly those related to health care. Individuals ages 65 and older allocate 13 percent of their spending toward health care compared to the 5 percent allocated by the general public. NARFE believes federal retirees need a CPI that accurately reflects their spending when setting COLAs for their retirement annuities. Adopting the CPI-E would likely increase annual COLAs. In recent years, some in Congress have sought to switch to the Chained Consumer Price Index for All Urban Consumers (Chained CPI), which would slow the growth of

COLAs, thereby decreasing them compared to the current CPI-W. With the CPI-W a poor reflection of seniors’ spending, a move to the Chained CPI is a move in the wrong direction. Honda first introduced this legislation in the last Congress. Encouraging cosponsorship is vital and creates an alternative to the Chained CPI, which has gained traction in the past. NARFE members can send a letter asking their representative to cosponsor this legislation through the Legislative Action Center at www.narfe.org. —By Jason Freeman, political and legislative specialist

Bill aimed at preventing federal annuity fraud passes senate

bill to protect federal reees Retirement System and the tirement funds from em- Civil Service Retirement System. bezzlement passed the Embezzlement of the funds would Senate August 5 by unanimous be classified as a felony, providconsent. Introduced by Sens. ing federal annuitants the same James Lankford, R-OK, and Heidi protections accorded recipients Heitkamp, D-ND, the Representa- of Social Security and veterans tive Payee Fraud Prevention Act, benefits. Under the Representative Payee S. 1576, would make it illegal for a Program, an individual or an orrepresentative payee to mishandle ganization can manage a retiree’s federal retirement funds. NARFE benefits if the recipient is unable supports the bill. to do so. This bill also would apply S. 1576 would grant authority to to minors and individuals with U.S. attorneys to prosecute finanmental disabilities who receive cial representatives who misuse 2015-16_PAC_Coupon_2013 Coupon 6/8/15federal 1:28 PMbenefits. Page 1 funds from the Federal Employ-

“I’m pleased the Senate has passed this bill to protect the retirement and annuities of federal employees across America from caretaker misuse and fraud,” said Lankford. Lankford and Heitkamp are chairman and ranking member, respectively, of the Homeland Security and Governmental Affairs Subcommittee on Regulatory Affairs and Federal Management. The bill is awaiting consideration by the House, where action is uncertain. —By carolyn dorf, legislative staff assistant

NARFE-PAC CONTRIBUTION FORM I would like to be a SUSTAINER and make a monthly credit card contribution to NARFE-PAC of:

q Please charge to my credit card (required for monthly contribution)

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Monthly contributions of $10 or more qualify you to receive the NARFE-PAC Sustainer lapel pin, along with a NARFE duffle bag.

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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.

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Washington Watch

OPM Data Breach UPdate: Contract award imminent, congress acts

he Office of Personnel Management (OPM), at press time, was expected to award a contract in late August for a comprehensive set of services, including identity theft insurance and credit monitoring, for individuals affected by the breach of data relating to background investigations – the second of the two data breaches revealed in June. Given the task of validating the addresses of the 21.5 million individuals impacted, 12 weeks have been allotted for notifications to be sent out under the new contract once it is awarded. In response to Frequently Asked Questions (FAQs), the OPM Cybersecurity Web page (www. opm.gov/cybersecurity) said the contract will provide three years of coverage to affected individuals, and additional coverage could be provided “as needed,” noting

legislation is pending in Congress providing greater protections and services. Such a move has been supported by NARFE. Lawmakers in Congress, particularly those with large civil service constituencies, have expressed their continuing concern over the plight of those impacted by the cyberattacks. Sen. Barbara A. Mikulski, D-MD, ranking minority member of the Senate Appropriations Committee, was joined by her Maryland colleague, Sen. Benjamin J. Cardin, D-MD, in announcing their amendment to provide lifetime creditmonitoring services, identity theft protection and restoration, and $5 million in liability protection for related damages for individuals affected by either (or both) of the OPM data breaches. “This adjustment to what OPM has previously offered more ad-

equately addresses the egregious nature of this federal cyberattack,” Mikulski and Cardin said. The congressional action mirrors NARFE’s position on the cyberattacks. As NARFE President Richard G. Thissen said shortly after the data breaches were revealed, “For these 21.5 million people, a lifetime of information was exposed. They deserve nothing less than a lifetime of protection.” Those affected by the first breach (of employee records) have been notified, and services provided to them remain the same. NARFE members are encouraged to visit the NARFE website (www.narfe.org) for the latest information on the cyberattacks and the steps being taken to notify, protect and indemnify members of the federal community. —By Alan Lopatin, legislative counsel

long-term care, life insurance rates change

he Office of Personnel Management (OPM) recently announced changes to premiums for the Federal Long Term Care Insurance Program and the Federal Employees’ Group Life Insurance (FEGLI) Program. Effective August 1, premiums for the government-sponsored, long-term care insurance program, underwritten by John Hancock Life and Health Insurance Company and administered by Long Term Care Partners, LLC, will increase for individuals who enroll on or after that date. Premi-

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ums for those already enrolled in the program will not change. Effective January 1, 2016, FEGLI premium rates will change for some types of coverage. The federal life insurance program is underwritten by Metropolitan Life Insurance, and claims are processed by the Office of Federal Employees’ Group Life Insurance, a private subsidiary of Metropolitan Life. Premium rates for Basic insurance will not change; rates for Option A, Option B and Option C will decrease; and rates for Post

Retirement Basic insurance with no or 50 percent reduction and those for older age bands of Options B and C will increase. OPM also announced that due to the changes in FEGLI premiums, it will hold an open season during the month of September 2016 to allow employees to elect or make increases to their coverage. Annuitants cannot enroll or increase their coverage, even during an open season. Employees and retirees should review their FEGLI coverage. —Federal Benefits Service Department

NARFE Advocates: Keep the pressure on congress as deadlines loom

rass-roots advocacy is a long-term commitment and most successful when done throughout the year. However, we also know that there are times when we really need our grass-roots advocates to step up and reach out to legislators. The last quarter of 2015 will be a busy time, and the federal community could be threatened at a moment’s notice. It is at this time that we not only turn to our grass-roots the most, but also see the greatest dividends from large participation. Fall Agenda. October 1 is the start of fiscal year (FY) 2016, but, as of press time, none of the required appropriations bills have been signed into law. Beyond the debate regarding government operations, the fall agenda likely will include debate over the Highway Trust Fund extension and increasing the debt ceiling. As negotiations over these major pieces of legislation continue, they provide an opportunity for legislators to target the federal community as a piggy bank. In addition, standalone legislation attacking federal employee and retiree pay and benefits could be voted on separately or added to larger pieces of legislation. (See article on VA “reforms,” p. 8.) Follow Up With Your Legislators. During the August recess push, we asked you to talk to your legislators in general terms about what may come up on the agenda this fall. As Congress turns to must-pass legislation, now is the time to follow up with your members of Congress. Re-

mind them that the federal community already has contributed more than $120 billion to deficit reduction through pay freezes and increased retirement contributions for new employees. Before recessing in August, the Senate briefly looked at changing the rate of return on the Thrift Savings Plan (TSP) G Fund as a means of paying for the Highway Trust Fund. This idea originated in the FY 2016 House Budget and is anticipated to come up again. It is imperative that you tell your legislators – even before the proposal can be included in future legislation – that the TSP is a vital part of federal employees’ retirement packages, and the proposal would make the fund almost worthless by reducing the rate of return to 0.02 percent. The mere threat of such legislation is weakening the viability of the TSP. As December 31 approaches, the chances increase for a fiscal “grand bargain,” which almost certainly would include cuts that would affect the federal community. We’re working now to make sure that doesn’t happen. As these deadlines get closer, build on the conversations you’ve had with your legislators. By using NARFE’s state-specific resources (see box at right), you can show them how many people in your state would feel an impact from the policies being debated. And don’t forget that more than 22 million people were affected by the data breaches at the Office of Personnel Management. Tell your member of Congress

it is particularly cruel to target this constituency for cuts when they are dealing with an unprecedented attack on their financial security. How to Stay Involved. To stay up to date and ready to take action, make sure you receive NARFE’s Legislative Action Alerts by updating your email address in the NARFE database. You can do that via NARFE’s website or by calling Member Records at 703838-7760. Also, get the most up-to-date information by following NARFE Headquarters on Facebook at www.facebook.com/narfehq. For more information or to have your questions answered, please contact the Legislative Department at leg@narfe.org or 703838-7760, ext. 201. —By Sarah Weissmann, grass-roots program manager

protect america’s heartbeat toolkits NARFE offers information tailored to each state online at www. narfe.org/heartbeat/ resources.cfm. Choose “State Specific Federal Family at a Glance Fact Sheets.” While you are there, check out the other information and helpful advocacy Toolkits.

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

Washington Watch

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

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

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

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

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

What Bill Would Do

Latest Action(s)

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

Referred to nine House committees

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

Referred to the House Committee on Oversight and Government Reform

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

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

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

Referred to the House Committee on Oversight and Government Reform

Passed the Senate on 7/28/15 narfe, March 2015

Cosponsors: 75 (D)

Federal Compensation

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

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 6 (D)

narfe, March 2015

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

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The president has the ability to provide a pay raise for federal employees on the General Schedule. He does not have the same authority for Wage Grade, or hourly, employees, whose raises must be authorized by Congress. H.R. 485 would give the president that authority.

Referred to the House Committee on Oversight and Government Reform

NARFEâ&#x20AC;&#x2122;s Position:

Oppose

Support

narfe, April 2015

No position

ISSUE

Bill Number / Name / Sponsor

Federal Compensation

H.R. 785: The Federal Employee Pension Fairness Act / Rep. Donna Edwards, D-MD Cosponsors: 24 (D) 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 Cosponsors: 166 (D), 46 (R)

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

Referred to three House committees

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

Referred to the House Committee on Oversight and Government Reform

H.R. 784: Protect Overnight Repeals the service standards Delivery Act / Rep. Rosa implemented by the Postal Postal Reform DeLauro, D-CT Service on 1/5/15 and directs the Postal Service to reinstate Cosponsors: 99 (D), 3 (R) service standards in effect on December 31, 2011.

Campaign finance

Referred to the House Committee on Oversight and Government Reform

Referred to the Committee on Homeland Security and Governmental Affairs

H.R. 20: The Government By the People Act / Rep. John Sarbanes, D-MD

Referred to three House committees

Cosponsors: 150 (D), 1 (R)

Cosponsors: 92 (D), 23 (R)

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

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

S. 1651: Social Security Fairness Act of 2015 / Sen. Sherrod Brown, D-OH

Referred to the Senate Finance Committee

Cosponsors: 12 (D), 4 (R)

narfe, September 2015

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

narfe, April 2015

S. 1742: Rural Postal Act of Returns to service standards 2015 / Sen. Heidi Heitkamp, of July 2012, preserves six-day D-ND delivery, puts two-year moratorium on plant closures, has Cosponsors: 5 (D) strong mitigation procedures for closures and reductions in hours of rural post offices.

H.R. 973: Social Security Fairness Act of 2015 / Rep. Rodney Davis, R-IL GPO/WEP

Latest action(s)

Cosponsors: 1 (R) S. 1580: Competitive Service Act / Sen. Jon Tester, D-MT Cosponsors: 2 (D), 4 (R)

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

Referred to the House Committee on Oversight and Government Reform

Approved by the Senate Committee on Homeland Security and Governmental Affairs on 6/24/15

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

Washington Watch

narfe bill tracker

(Continued from p. 13) ISSUE

Paid parental leave

DC Statehood

Bill Number / Name / Sponsor

What Bill Would Do

H.R. 532: Federal EmAllows federal employees six ployees Paid Parental weeks of paid leave for the birth Leave Act / Rep. Carolyn or adoption of a child. Maloney, D-NY Cosponsors: 55 (D), 1 (R)

H.R. 317: New Columbia Admissions Act / Del. Eleanor Holmes Norton, D-DC

Latest Action(s) Referred to the House Committees on Administration, and Oversight and Government Reform narfe, May 2015

Sets forth procedures that would allow the District of Columbia to become a state known as New Columbia.

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

Expands lifetime coverage of credit monitoring and identity theft protection of no less than $5 million to all individuals afCosponsors: 16 (D), 1 (R) fected by the security breaches at the Office of Personnel Management. S. 1746: RECOVER Act / Sen. Benjamin J. Cardin, D-MD

Referred to the House Committee on Oversight and Government Reform

Cosponsors: 121 (D)

H.R. 3029: RECOVER Act / Del. Eleanor Holmes Norton, D-DC OPM Security breach

COLA Measurement

Cosponsors: 5 (D)

Referred to the Senate Committee on Homeland Security and Governmental Affairs

H.R. 3351: CPI-E Act of Requires Social Security and 2015 / Rep. Mike Honda, many federal retirement programs to use the Consumer D-CA Price Index for the Elderly (CPI-E) to calculate cost-ofCosponsors: 5 (D) living adjustments in retirement benefits.

Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Government Reform, and Armed Services See story, p. 8

NARFE’s Position:

Support

Oppose

No position

Land Management workforce Act signed

n August 7, President Obama signed into law H.R. 1531, the Land Management Workforce Flexibility Act, which will make it easier for federal land management agencies to hire temporary seasonal employees for full-time positions. Introduced by Rep. Gerald E. Connolly, D-VA, H.R. 1531 will allow employees holding temporary appointments at the Forest Service, Land Management Bureau, National Park Service,

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Fish and Wildlife Service, Indian Affairs Bureau, and Reclamation Bureau to be hired for permanent positions based on internal merit procedures, just as permanent federal employees are. Presently, temporary seasonal employees can work a maximum of six months per year for which they do not receive retirement benefits or the opportunity for career advancement. When their work is not required, they are terminated but often rehired the

following season. This legislation will allow them to be hired for positions as permanent seasonal employees. Permanent seasonal employees also work part of the year, but are placed on furlough when their work is not required. Permanent seasonal employees also receive benefits as other fulltime employees do. This will benefit approximately 10,000 temporary employees. NARFE supported the bill. —By carolyn dorf, legislative staff assistant

NARFE’s

CONGRESSIONAL DIRECTORY for the

114th Congress (2015-2016)

Congressional Information:

• Listing of members of Congress by state delegation, with color photos, biographical data and congressional district maps. • Members’ contact information, including addresses, phone and fax numbers, website addresses, social media contacts, district oﬃces and key staﬀers. • How Congress is organized and operates, with complete listings of committees, subcommittees and leadership. • Contact information for the White House, Cabinet, Supreme Court and federal agencies. … And customized for NARFE members Special insert with NARFE-specific information and data to be used for grass-roots advocacy.

Order your copy of the new Congressional Directory today! Clip and mail to: NARFE Congressional Directory, 606 N. Washington Street, Alexandria, VA 22314-1914 Name___________________________________________________________________ Address _________________________________________________________________ City __________________________________________State _______ZIP____________ Member ID# (As it appears on narfe magazine label)_____________________________

o Check or cash enclosed o Charge to my credit card

o MasterCard o VISA o Discover o AMEX

Card # __________________________________________________________________ Exp. Date

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Quantity ________________ $20 each (includes shipping and handling) VA sales tax______________ VA residents add 6% tax ($1.20) per book Total cost________________

Name on card (print) ______________________________________________________ Signature _____________________________________________ Date _____________

Order form also available online at www.NARFE.org

Make checks payable to NARFE

*Please allow 2-3 weeks for delivery

Questions & Answers

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

employees Who is eligible for A FERS Annuity supplement?

What are the requirements for a Federal Employees Retirement System (FERS) employee to be eligible for the FERS Annuity Supplement on retiring?

To be eligible for the FERS Annuity Supplement, an employee must have one full calendar year under FERS and must qualify for an immediate, nondisability retirement other than a retirement under the Minimum Retirement Age plus 10 years (MRA+10) provision. The supplement is available to FERS employees who retire before they are eligible for Social Security benefits. It represents what the employee would receive from the Social Security Administration for his or her FERS civilian service and is calculated as if the employee were eligible to receive Social Security benefits on the date of retirement. The supplement ends at age 62 (the

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date at which individuals are first eligible for actual Social Security benefits), whether or not the retiree decides to apply for Social Security benefits at that time.

specify the amount of state tax you want withheld from your monthly payments. The withholding must be in whole dollars. The minimum amount the Office of Personnel Management can withhold for state income tax is $5. Contact your state tax office for guidance.

where to send divorce decree for benefits

Interim payments and state tax withholding

Mail these materials to: U.S. Office of Personnel Management, Retirement Services Program, Court Ordered Benefits Branch, P.O. Box 17, Washington, DC 20044-0017.

I am getting ready to retire. Can I immediately have state taxes withheld from my interim annuity payments?

State taxes cannot be withheld from interim annuity payments. If you are in interim pay, your case has not been finalized. Once your annuity is finalized, you must

My divorce decree from my former spouse, a federal employee, provides me with future survivor benefits, subject to termination if I remarry prior to his death. To whom do I send the divorce decree?

retirees Dual-Status techs and the WEP

I enjoyed the article in the August 2015 issue of narfe magazine on dual-status technicians (p. 22). With regard to the court case Peterson v. Astrue, which exempts dual-status retirees from the Windfall Elimination Provision (WEP) if they are legal permanent residents in a state in the federal judicial Eighth Circuit, I was told that I am not eligible for this exemption because I started receiving Social Security benefits before February 3, 2011. Is this true?

We are happy you enjoyed the article. With regard to your question related to the Eighth Circuit Federal Appeals Court ruling that exempts some National Guard Technicians from the WEP, as you know, the WEP reduces earned Social Security benefits for those who worked in non-Social Security-covered employment, including federal employees under the Civil Service Retirement System. While the Social Security Administration (SSA) did not agree with the court’s ruling, it accepted it in this particular instance but said it would not apply the ruling outside of the Court’s circuit – Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota and South Dakota – or to determinations to apply the WEP to retirement or disability benefits made before February 3, 2011, the

date of the Court of Appeals’ decision. You can read the entire SSA Acquiescence Ruling in the Federal Register of August 27, 2012. It is available online at: www.gpo. gov/fdsys/. Click on Federal Register on the right, then navigate to the month and day.

POlicy on re-employed annuitants at DOD

I understand there is a new policy by the commander, Headquarters, U.S. Army Installation Management Command, that re-employed annuitants may not work longer than 12 months. I have been told this policy and other policies are to discourage the hiring of annuitants. Is there any truth to this?

Changes in overall Department of Defense (DOD) hiring of civilians, including restrictions on hiring annuitants, are probably the result of DOD budget decisions made in 2014 to control personnel costs through fiscal year 2019. Departmentwide, the Pentagon’s civilian workforce is scheduled to reduce by 1 percent, with the Army losing most of those positions – about 4,400. We recently heard from other NARFE members who told us that they determined, upon reviewing available job postings in some DOD departments, that annuitants seeking to be re-employed will be subject to a higher-level authority for approval than other applicants.

What are Federal life insurance options?

I retired in January 1988. At the time, I continued my Optional life insurance under the Federal Employees’ Group Life Insurance (FEGLI) Program because I still had three children residing at home. I no longer need this insurance. In June, I turned 80 years old, and my premiums increased. Can I cash in the total payout amount for a lesser amount, or sell the insurance to a private firm or, as a last resort, cancel the insurance and lose everything? Please let me know what my options are.

Your federal life insurance coverage is term life insurance. It has no cash value except as a benefit payable to your beneficiaries upon your death. You cannot cash it in or sell it. As a federal retiree, you can: • Cancel all your FEGLI coverage; • Keep the Basic insurance and cancel an Optional insurance; • Change a Basic insurance reduction choice from a lesser reduction to a full 75 percent reduction; or • Change Option B, “no reduction,” to a full reduction. You also can elect a Living Benefit if you are terminally ill with a life expectancy of nine months or less. If you are terminally ill, you also can assign your FEGLI coverage to a viatical settlement firm in exchange for cash. Some viatical firms also accept assignments if you are chronically ill. A Living w w w. n a r f e . o r g

Questions & Answers

Benefit allows you to receive payment of your Basic insurance amount only.

Post-retirement marriage

Q A

I am a retired federal employee. How do I provide a survivor benefit for my new spouse?

Retired federal employees who get married after retirement can elect a reduced annuity to provide a survivor annuity for a new spouse. You must make this election within two years of the date of your marriage. If you remarry the same person to

ROC3137NARFEhalfAds.indd 1 oc t 2 015

whom you were married at retirement, you cannot elect a survivor annuity greater than the one you elected at retirement. There will be two reductions in your annuity if you elect to provide the survivor benefit. The first reduction will be the reduction to provide the survivor benefit. That reduction depends on the amount you elect for the survivor annuity. Your annuity also is reduced by a permanent actuarial reduction equal to the difference between the new annuity rate with the survivor benefit and the old one without the survivor benefit since your retirement, plus 6 percent interest. In most cases, the actuarial reduction amount is less

than 5 percent of your annuity. The actuarial reduction continues even if the marriage ends. When you contact the Office of Personnel Management, it will send you a statement describing the cost of the election and ask you to confirm your election.

Medicare Advantage and FEHBP enrollment

Can I enroll in a Medicare Advantage plan and keep my Federal Employees Health Benefits Program (FEHBP) plan? In Colorado, there is a UnitedHealthcare (UHC) Medicare Advantage plan without drug coverage (called

4/15/14 1:26 PM

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Questions & Answers

an Essential Plan). I am told by a UHC representative that I can enroll in this plan and keep my federal FEHBP plan with drug coverage. I thought the information on the NARFE website implied that you have to suspend your federal health insurance.

When you enroll in a Medicare Advantage plan, you may not need FEHBP coverage because the Medicare Advantage plan will provide you with many of the same benefits. You should review the Medicare Advantage Plan benefits carefully before making a decision to suspend or cancel FEHBP coverage. You should contact your retire-

ment system to discuss suspension and re-enrollment. (See story, p. 34, for more information on Medicare Advantage.)

Medicare Overseas

Q A

I’d like to know how to enroll in Medicare B and whom I should contact if I live in Mannheim, Germany.

You should contact the Social Security Administration’s Office of International Operations (OIO), which assists Social Security customers who are outside the United States or who are planning to leave the United States. Here is the OIO

contact address (be sure to include your Social Security number): Social Security Administration, Office of International Operations, P.O. Box 17775, Baltimore, MD 21235-7775. You should know, however, that Medicare does not pay for health care services you get outside the United States, except in very limited circumstances.

Refused Reasonable Accommodation

I was a postal employee for 22 years. When a new manager took over my department, I was forced to retire. I believe it was due to my disabilities.

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Questions & Answers

NARFE at Your Service The new manager didn’t want to allow me accommodations. I could have learned anything they would have shown me how to do, but they wanted me out. I read your article on “Reasonable Accommodations” (narfe magazine, July 2015, p. 22) and was surprised to hear of all the similar circumstances. If the federal government refuses to give accommodations to disabled employees, we have nowhere to turn. I think someone needs to make the federal government lead by example.

We agree with you that federal agencies should make the effort to keep good, experienced workers rather

than give them a disability retirement application and show them the door. Some agencies do make more of an effort to accommodate employees than others. Be assured that when legislative or administrative proposals to better enforce reasonable accommodations in the government are proposed, NARFE will be supportive. To obtain an answer to a federal benefits question, NARFE members should call 703-838-7760 and ask for the Federal Benefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

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

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

www. narfe.org.

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Phased retirement

Illustration by Bill Pragluski, Critical Stages, LLC

By David Tobenkin

Slow Pace of Implementation Means a Missed Opportunity for Many Outbound Feds

Not for nothing is the federal civil service called a bureaucracy, as the rollout of phased retirement shows. It has been more than three years since legislation was enacted establishing the program, under which agencies are allowed, but not required, to permit retirement-eligible employees to work a half schedule and receive half their retirement benefits. And it has been more than a year since the Office of Personnel Management (OPM) issued rules and guidelines on implementing the program for those agencies that choose to offer it. But only a handful of federal agencies actually have

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

Phased retirement launched phased retirement programs, despite vigorous advocacy for the program by NARFE, other employee organizations, unions and others. It has been a frustrating delay for many employees who considered themselves good candidates for the program and who eventually decided that they could wait no longer for their agency to offer the program and, instead, retired. “If phased retirement had been offered, it would have allowed me to better care for my aging parents,” says Maryann Casoli, a former intelligence research analyst at the Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives, who retired in 2014. “Instead, I retired because I was using too much leave and was 57 years old with 33 years of employment. I would have liked to have retired with 35 or 40 years of employment.” Nonetheless, other NARFE members still expect to be able to take advantage of the program. “Phased retirement would be a perfect way to transition to retirement, and we need it because we have mostly younger employees,” says Charlie Rienhardt, a 66-year-old General Services Administration sustainability program manager in Denver. “I’m working until they make a decision. It isn’t being offered yet; but I have asked the managers above me, and they say that they would approve it at the regional level. I enjoy my work, so I can afford to be patient. I’m not alone; a bunch of us are on hold.”

RULES OF THE GAME

On August 8, 2014, OPM issued both phased retirement rules and a benefits administration letter providing plain-English guidelines for agencies that choose to offer the program to their employees. Agencies could offer the program starting November 6, 2014. Under the rules, employees must be eligible for standard retirement to take advantage of the program and must have been full-time federal employees for the preceding three years. Civil Service Retirement System (CSRS) employees are eligible to apply for phased retirement at age 55 with 30 years of service, or at age 60 with 20 years of service. Federal Employees Retirement System (FERS) employees are eligible with 30 years of service and their minimum retirement 28

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age (MRA), or at age 60 with 20 years of service. Employees subject to mandatory retirement (such as law enforcement officers, firefighters and air traffic controllers) are not eligible to apply for phased retirement. In addition, phased retirement participants must spend at least 20 percent of their work time mentoring other agency employees who will take their place. A wide variety of other matters, however, are within an agency’s discretion, such as how long an employee can participate in phased retirement, which categories of employees are eligible and whether the agency will allow employees to return to full-time status if they change their minds.

THE GAMUT OF AGENCY RESPONSES

The first agency to offer the program was the Library of Congress, where 11 employees were approved to begin participating in a pilot phased retirement program beginning in March 2015. The employees and their managers elected to participate for periods of six months and a year, with an option for an extension of up to 18 months upon agreement by both sides, says Dennis Hanratty, the Library of Congress’ human resources director. As with an agency buyout or an early out, phased retirement programs present key timing windows for those interested in participating. At the Library of Congress, the phased retirement program was announced in October 2014. An application window was provided between November and mid-December 2014, and, upon approval, accepted employees had a six-month window in which to begin participation in the program, Hanratty says. All Library of Congress employees were eligible to apply for the program but could be turned down based on a determination that their position was not suitable for phased retirement. This, in fact, occurred with two applicants, he says. Hanratty says a key misconception of some Library of Congress employees who expressed interest in the program was that they had a right to return to regular status. “Some people thought they could try this for a couple pay periods and, if they didn’t like it, go back to their full-time arrangement,” he says. “We made it clear that there was no requirement for the agency to approve that.”

Another agency in the process of implementing the program is the National Aeronautics and Space Administration (NASA). “NASA finalized agency direction for phased retirement [in June], and each NASA center is currently in the process of implementing that direction,” says Sarah Ramsey, a NASA spokesperson. The Department of Defense reportedly will unveil its phased retirement policy in the next few months. Many other agencies say they are in the process of developing their programs. “Like almost every other federal agency, the Department of State is still working to develop agency-specific implementing procedures for phased retirement,” says John Naland, until recently the director of the State Department’s Office of Retirement. “State’s Bureau of Human Resources is working with various stakeholders to develop the department’s phased retirement policies, guidance and agreements for qualified participants.” The Department of Veterans Affairs (VA) hopes to implement a phased retirement program by fall 2015, says VA spokesman Randy Noller. But a growing number of agencies are reporting that they will not implement phased retirement programs, at least for the time being. “Social Security has decided not to implement a phased retirement program at this time,” says a Social Security Administration spokesperson, declining to provide elaboration. “The Office of the Comptroller of the Currency (OCC) has determined not to implement a phased retirement program,” says a spokesperson. “The OCC has committed to revisit possible implementation of the phased retirement program at a future date.” In July, the U.S. Postal Service announced that it would not offer the program “at this time.”

LONG DELAYS AND REFUSALS

NARFE has steadily beat the drum for more action by agencies, notably in a May 28 letter from NARFE National President Richard G. Thissen to then OPM Director Katherine Archuleta. Thissen urged Archuleta, in her role as chair of the Chief Human Capital Officers (CHCO) Council, to encourage agencies to disclose the status of phased retirement at their agencies. NARFE Legislative Director Jessica Klement says that NARFE did

Proactive preparation allowed Library of Congress to offer the first program. not receive any feedback on the letter, and OPM declined to respond to a subsequent query as to whether the letter had been presented to CHCO Council members. “OPM’s role has been, and continues to be, to support agencies and to provide guidance on the use of phased retirement, not to mandate agency-specific policies, implementation plans or timelines,” says an OPM spokesperson. Federal employee unions also have pushed for agency action, in some cases negotiating agreements with agencies on behalf of their members. “National Treasury Employees Union (NTEU) has entered into an agreement with the Nuclear Regulatory Commission to implement a phasedretirement program and has also initiated negotiations in all NTEU-represented agencies,” says NTEU National President Tony Reardon. “We continue to urge other agencies to write the rules to implement phased retirement without further delay, because we recognize the program benefits federal agencies and the workforce.” The slow pace of agency action in launching phased retirement programs is disappointing, NARFE’s Klement says. “I can’t see why they would not want to offer this. It is a win-win all around: a win for continuity, for the employees, and for the taxpayers by saving money.” The Library of Congress’ Hanratty notes that his agency was able to be the first to launch a phased retirement program because it was proactive in preparing for one. “We were sensitive to the fact that we have a mature workforce, with 25 percent of our workforce eligible for immediate retirements, which was an important motivator for us,” he says. “We started laying the groundwork for the program as early as 2012, long before OPM issued its rules. w w w. n a r f e . o r g

Phased retirement When OPM came out with its draft regulations in summer 2013, we began in earnest to focus on our program.” Even so, Hanratty says, there was an unexpected three-month delay in allowing employees to begin participating in the program because of challenges reconfiguring the agency’s payroll computer systems. As for some agencies deciding that the program is not for them, that is not too surprising, says Jeffrey Neal, a senior vice president for ICF International and formerly chief human capital officer for the Department of Homeland Security. “Phased retirement is job sharing, two people doing one job instead of one, and that is harder for managers to manage and more expensive for agencies, which must pay someone in phased retirement status and hire someone new to learn the job,” Neal says. “And on the employee side, many people are ready to retire and don’t want to work part time. With all those qualifiers, I don’t expect large numbers of employees to participate in phased retirement programs.” Still, it could make sense for a considerable number of employees, says John Palguta, a vice president with the Partnership for Public Service, a think tank on federal public service issues. “Most agencies, because of sequestration and the budget problems, have not been feeding the pipeline of employees and have a bimodal workforce of many older and many younger employees and fewer mid-career employees,” Palguta says. “The younger employees need training and seasoning, but the seasoned employees are retiring. Phased retirement will help agencies to manage that turnover.”

ONE PARTiCIPANT’S EXPERIENCE

While agency employees currently participating in phased retirement programs are few and far between, they do exist. Ford Peatross is the director of the Center for Architecture, Design and Engineering in the Prints and Photographs Division at the Library of Congress, where he manages a program to select, manage and exploit several million photo and print items. In March, Peatross, who is 67 with 40 years of service at the Library of Congress, entered the agency’s phased retirement program. Peatross says the program is a good fit. “My boss suggested I examine this program when I told 30

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them I would retire in March 2014,” he says. “It’s a very useful and rewarding process to pass on information and to leave the place neat for the next person. It means they will have to call me far less when I am gone. When you’ve been somewhere for 40 years and have started programs, you have a legacy; so you could say I am invested. The most important thing in this process is to tell my successor what isn’t expressly stated in the memos: what was between the lines in terms of how we did a negotiation or why we did what we did.” Hanratty says that one challenge expressed by some employees participating in the program is having half the employment hours to complete tasks, with available time reduced even further given the requirement to dedicate 20 percent of the remaining time to knowledge transfer. On the employer side of the arrangement, Hanratty says agencies like his will seek to measure the degree to which the program facilitates knowledge transfer from the phased retirees to the remaining employees.

SHOULD AN EMPLOYEE PARTICIPATE? There are a number of considerations as to whether phased retirement is the optimal ending to a federal career. First, it is only one of a number of options that may be available to an employee looking to slow down or transition to retirement. Some agencies will allow employees to reduce their hours to a parttime schedule. Some agencies may allow retired employees to return to work as rehired annuitants under programs that allow re-employment without offset of retirement benefits. Telework, too, can help allow a transition away from the agency by eliminating commuting time and stress. When an employee in phased retirement status decides to fully retire, the “composite retirement annuity” will equal the sum of: the phased retirement annuity, updated by any cost-of-living adjustments (COLAs) that were applied to the phased retirement annuity, plus the amount of the final phased portion of the full retirement annuity. Generally, employees participating in phased retirement will receive more money than if they simply had converted to part-time status, since they also will be receiving half of their retirement annuity. They will receive, however, a smaller ulti-

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Phased retirement mate annuity than if they had worked their final phased retirement period full time, the exception being certain CSRS employees who have reached the 41-year11-months CSRS cap. “I wouldn’t consider phased retirement unless you want to be a part-time employee,” says James Marshall, a federal retirement benefits specialist and the owner of Charlotte, NC-based Federal Retirement Planning LLC. “I had a friend ready to retire who was not looking forward to commuting five days a week, who hopes to convert to phased retirement at age 61 and work in that status until age 62, which would allow him to use the 1.1 percent factor in determining the final portion of his FERS annuity, rather than the 1 percent factor for the entire annuity amount that he would otherwise have received had he retired at age 61. For him, that could amount to $600 more per month.” Marshall urges employees to have their agencies’ HR people run alternate scenarios to help determine if phased retirement makes financial sense for them. There are a number of other financial considerations. One advantage of phased retirement is that even though the phased retirement participant is working part time, if he or she dies while in that status, the survivor benefits are the same as a full-time employee who died in service. Employees in phased retirement status also may contribute to their Thrift Savings Plan (TSP), though they are also subject to the normal restrictions regarding TSP loans; financial hardship withdrawals; and age-based, in-service withdrawals, says Carol Schmidlin, president of Sewell, NJ-based Franklin Planning. Phased retirees are not eligible for post-employment withdrawals and are not subject to required minimum distributions or the TSP withdrawal deadline. All sources of contributions (employee contributions, Agency Automatic Contributions and Agency Matching Contributions) to phased retirees’ TSP accounts will be calculated on basic pay received each pay period and will not take into account the annuity payment from OPM. Phased retirement participants also will continue to receive a full government contribution toward their Federal Employees Health Benefits 32

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Program (FEHBP) plan and Federal Employees’ Group Life Insurance (FEGLI), which will be based on their full-time salary, Schmidlin says. Marshall also says that because the agency will make its full FEHBP contributions to an employee in phased retirement, but will not to part-time employees, this also is a relative advantage over those employed part time. One phased retirement disadvantage is that employees will not be eligible for any voluntary separation incentive payments (VSIPs) or voluntary early retirement authorities (VERAs), Schmidlin says. Some negative considerations are that benefits received by a fully retired employee will be reduced or not available for a phased retirement employee. Partial or full withdrawal options from TSP, for example, cannot be exercised until full retirement, Marshall notes. In addition, the FERS Annuity Supplement, generally available until age 62, is not payable during phased retirement. Some narfe magazine readers responding to a reader survey said that even without implementation at their agency, they could tell that phased retirement would not make sense for them. “I thoroughly reviewed proposed and final regulations on phased retirement, commented and received a response to my comments,” says one National Park Service ecologist. “For a person like myself who had reached minimum retirement age, but was not yet 62, phased retirement would be a bad deal, reducing the lifelong annuity by more than 5 percent. By averaging my annuity before and after age 62, the age benefit would be halved. Consequently, I asked to take intermittent leave without pay during my last year of work and did not put in for retirement before age 62. I would have preferred working half-time, because there were insurance complications with leave without pay, such as no salary for payroll deduction, but phased retirement would have cost too much.” Another common refrain from survey participants skeptical about the program is that the culture at their agency or department might cause any “part-time” arrangement to morph into a fulltime one. —David Tobenkin is a freelance writer based in the greater Washington, DC, area.

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Medicare and the FEHBP:

Happy birthday! Hard to believe you’re 65, right? You don’t feel 65. Heck, you don’t even feel 55. But the reality is that you’ve reached an age at which some payback is due. That payback is Medicare – the nation’s largest health insurer. Most of you have been paying into Medicare since the day you started working (or since 1983 if you were working for the federal government then). Now that investment will pay off.

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You already have one of the best health insurance plans in the country – the Federal Employees Health Benefits Program (FEHBP). Small employers (those with 20 or fewer employees) can stop providing health insurance. Most employers – large and small – stop covering their share of the health insurance premium, if they provide any coverage at all, when employees retire. The federal government does neither. It pays an average of about 70 percent of employees’ health insurance costs and continues to pay its share of the premium when employees retire.

By Debra Gordon w w w. n a r f e . o r g

Making the Right Choice But you still need to consider your options. Should you sign up for Medicare at all? If you do, which parts? What about Medigap insurance? Should you choose a Medicare Advantage plan? Do you need a drug plan? Should you keep your FEHBP plan even if you enroll in Medicare? It can all be a bit overwhelming. Which is why, says David B. Snell, director of the NARFE Federal Benefits Service Department, questions about Medicare and FEHBP “are the number one call we get.” One reason is that as soon as you approach your 65th birthday, your mailbox fills with glossy brochures from insurance companies trying to sell you Medicare-related products. Not only that, but about three months before your birthday (assuming you are receiving Social Security benefits and paid into Medicare for at least 10 years) the Social Security Administration sends you a letter with your Medicare card and a password for the official Medicare site, www.medicare.gov. If you are not receiving Social Security benefits when you turn 65, then it’s up to you to go to the medicare.gov website and sign up for coverage. Well, toss those brochures aside and hold off logging onto the Medicare website until you finish this article. We’ve got the answers to your questions.

1. Should I sign up for Medicare?

You should definitely sign up for Medicare Part A, which covers hospitalization. It doesn’t cost a thing for the coverage, and you’re eligible if you paid Medicare payroll taxes for at least 10 years. Even if you have FEHBP coverage, it can help cover costs that some FEHBP plans don’t or only partially cover, such as durable medical equipment and home health services. You’re also automatically signed up for Part B if you receive Social Security benefits when you turn 65. Part B covers most outpatient care, including all physician visits, outpatient procedures, and lab and imaging tests, but it does not cover prescription drugs. It also carries a premium: $104.90 in 2015; higher depending on your income. You don’t have to keep Part B. Just contact your Social Security office for the paperwork needed to disenroll. If you’re employed when you decide not to enroll in Part B, you can enroll later with no penalty. But if you’re retired and not covered under your partner’s/ spouse’s insurance and turn down Part B, your premium will be 10 percent higher a year for each year you went without when you do sign up. Most federal 36

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retirees choose Part B. “I would tell those who have chronic health issues to think carefully about declining Part B,” wrote one federal retiree in response to a narfe magazine reader survey. “I wish I hadn’t done so – I’ve paid a lot out of pocket as a result. Base your decision on what is likely your future, not what [your health] is at this moment.” Another told us: “I declined Part B initially because I thought FEHBP and Part A would be sufficient. However, my health has declined to the point that I believe it will be cost-effective to have both.” “I always said I would not take Part B of Medicare when I was working,” wrote another retiree. “But then after a friend had serious health issues, her husband said how thankful he was that she had had the foresight to take Part B in addition to her FEHBP. As a cancer survivor, I decided I needed to have the best and most comprehensive coverage possible.” However, cost can be a factor for some, as another retiree wrote: “I did not enroll in Medicare Part B because given the combined cost for my wife and I, we would need quite a few doctors’ visits to break even. So we are covered for doctors and medications by federal Blue Cross.” One advantage to enrolling in Medicare parts A and B, even if you keep your federal insurance, is that some FEHBP plans waive deductibles, coinsurance and co-payments if Medicare is the primary payer. If you’re still working, FEHBP is primary and Medicare secondary; if you’re retired, Medicare is primary and FEHBP secondary.

2. What about a Medigap plan?

Medicare Supplemental Insurance, or Medigap, is standardized private insurance that covers costs Medicare doesn’t, such as coinsurance and copayments. These out-of-pocket costs can add up pretty quickly if you have traditional Medicare. For instance, in 2015, there is a $147 deductible for Part B, then you have to pay 20 percent of all outpatient services. Under Part A, you have a $1,260 deductible to meet for the first 60 days of hospitalization in a year, with additional costs thereafter. On average, Medicare beneficiaries spend about $2,700 a year for deductibles and other cost-sharing requirements. Plus, unlike private health insurance plans and FEHBP, under traditional Medicare there is no limit on out-of-pocket expenses, so you could find yourself with some hefty bills. Medicare also doesn’t pay if you get sick outside the country.

But all nationwide FEHBP plans do, as do some Medigap plans. To help with these costs, you have two options: Keep your FEHBP, which operates like a Medigap plan; or sign on with a Medigap plan. Here are some key things to know about Medigap plans: • There are 10 “classes” of Medigap plans, each with different benefits and premiums. Use the table on the Medicare website to compare them (www.medicare.gov/supplement-other-insurance/ compare-medigap/compare-medigap.html). The most popular are the C and F plans, which cover the Part B deductible. Legislation currently pending in Congress, however, would phase out those plans by 2020, so all beneficiaries would have to meet the Part B deductible (estimated to be $180 in 2020) before receiving first-dollar coverage via their Medigap plan. • Some plans set premiums based on your age, with premiums increasing as you get older; others do not. • There are no “family” policies when it comes to Medigap; your spouse or partner must buy his or her own insurance. • Private insurers such as Blue Cross, Humana and Kaiser, among others, sell Medigap plans. • As long as you enroll in a plan during the Medigap Open Enrollment Period (the six months after you sign up for Plan B), plans must provide coverage regardless of your current health. Otherwise, plans can charge you a higher premium based on your health, or even deny coverage. • Unlike your FEHBP or other commercial insurance plans, if you received treatment for a health condition in the six months before your coverage began, the Medigap plan can refuse to cover costs related to that condition for the first six months you’re covered. Medicare still covers those expenses, however. • There are managed-care-type Medigap plans, called Medicare SELECT, which limit you to certain providers. In return, you pay lower premiums. • If you choose a Medigap plan, you should also sign up for Medicare Part D, which covers prescription drugs, because neither traditional Medicare nor Medigap plans covers them. The choice between a Medigap plan and FEHBP comes down to three things: • Cost. The average cost of a single-person Medigap plan is about $183 a month. Average premiums range from $140 per month per person

for Medigap Plan A to $196 per month for Medigap Plan I. Shop around; different insurers may charge more for exactly the same plan. • Benefits. You may find that your FEHBP plan has richer benefits than a Medigap policy. For instance, some Medigap plans don’t cover care outside the country; all nationwide FEHBP plans do. • Family coverage. If your partner or spouse is under 65 and relies on your FEHBP insurance, then keep it. If you disenroll to buy a Medigap plan (or Medicare Advantage), your partner/spouse will need to find new insurance. Although about one in four Medicare beneficiaries – approximately 9.3 million – have Medigap policies, that number is dropping as more join Medicare Advantage plans (described in the next section).

3. How About Medicare Advantage?

Medicare Advantage, or Medicare Part C, is the managed care version of traditional Medicare. Most plans work like a health maintenance organization (HMO) or preferred provider organization (PPO), restricting you to certain networks of providers and charging more if you seek care outside of the network. Most cover prescription drugs, as well as “extras” not covered under traditional Medicare; some, for example, cover hearing aids.

Do I Need a Medigap Plan?

• You’re signing up for Medicare Parts A and B and keeping FEHBP. No, you don’t need a Medigap plan. • You’re signing up for Medicare Advantage. No, you don’t need a Medigap plan. • You’re only signing up for Medicare Part A. You can’t get a Medigap plan unless you also sign up for Part B. • You’re signing up for Medicare Parts A and B and disenrolling from FEHBP. Yes, you need a Medigap plan. Keep in mind, however, that if you’re retired and do this, you won’t be able to re-enroll. If you’re still working for the federal government, however, you can re-enroll during the annual Federal Benefits Open Season.

One federal retiree responding to our survey said he chose Medicare Advantage because the premium was much lower for the same coverage, even with the Part B premium (about $300 a month less) than if he chose traditional Medicare and kept his FEHBP. Here are some key points to know about Medicare Advantage: • You still pay your Part B premium. About 20 percent of Medicare Advantage plans also charge w w w. n a r f e . o r g

Making the Right Choice Traditional Medicare

Medicare Advantage

Provided by the federal government, which pays health care providers on a fee-for-service basis.

Provided by commercial health insurers who receive a lump sum from the federal government to provide coverage.

No for Part A. Yes for Parts B and D.

About 20 percent of plans charge a premium.

Yes

No Maximum outof-pocket limits

Yes

You can go to any doctor, hospital or outpatient facility anywhere in the country that accepts Medicare. No referrals are needed. An estimated 91 percent of adult physicians accept Medicare.

Typically restricted to a specific network of providers; may require referrals to see specialists.

Depends on the plan.

Only if you purchase Part D.

Most plans cover prescription drugs.

Yes

Overview

Premiums

Deductibles

Network

Prescription drug coverage

a premium for the plan itself. • You still have deductibles and coinsurance. • You can suspend your FEHBP coverage while you receive Medicare Advantage. You can’t also purchase a Medigap plan. • Your out-of-pocket expenses are limited (no more than $6,700). Most plans set limits lower, however, with the average out-of-pocket limit in 2015 about $5,000. • Most, but not all, cover prescription drugs.

Why Choose Medicare Advantage? Medicare Advantage might be a good choice for you if: • You don’t want to worry about coordinating benefits between two health plans (Medicare and FEHBP or Medicare and a Medigap policy). • Your doctors are in the health plan. • You want/need any additional benefits the plan offers (benefits will vary based on plan). • You like knowing exactly what your out-of-pocket costs will be (i.e., a co-payment versus paying 20 percent of the charge), plus an annual limit. • You are comfortable using a restricted network of providers.

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FEHBP

Medigap

Provided by commercial Provided by commercial health insurers who charge health insurers for active and retired federal premiums. employees. You must have Parts A and Benefits continue with B to enroll in a Medigap no changes when you plan and cannot be in a You must have Part B Medicare Advantage plan. turn 65 and/or retire. in order to enroll in a Can serve as a suppleMedicare Advantage mental insurance plan to plan. Medicare.

If your plan doesn’t, you need Medicare Part D, which has a monthly premium of $33.13 in 2015. One retiree told us she chose Medicare Advantage after comparing coverage with FEHBP because she felt she could receive the same coverage at a much lower price. “If a colleague was uncertain as to what to do, I would recommend this type of coverage,” she said. Another reason for her decision? “If I decide to go back to FEHBP, I can do so during the open enrollment period without any penalty because I suspended my FEHBP.” Other retirees responding to our survey said they found that a Medicare Advantage plan provided richer benefits at a lower cost than traditional Medicare plus FEHBP. Medicare is a complex program, with numerous options, rules and regulations. But carefully reading the information available at www.medicare.gov and comparing your options can help you make the right decision as you move into this next phase of life. —debra gordon, ms, is a health care communications consultant and writer with more than 30 years’ experience. She lives and works in Williamsburg, VA.

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Open Season Report

pen season Report

What you can do in open season

Open Season Starts November 9; It’s Time to Prepare ...

ederal Benefits Open Season will run from Monday, November 9, through Monday, December 14. During Open Season, federal employees may enroll or change their current enrollments in a number of federal insurance benefit programs, such as the Federal

Employees Health Benefits Program (FEHBP), Federal Employee Dental and Vision Insurance Program (FEDVIP) and the Federal Flexible Spending Account Program (FSAFEDS). Federal retirees and survivors may make changes to their current enrollment under the FEHBP

and FEDVIP. Importantly, Open Season is the only time of the year when enrollees in FEDVIP can cancel their enrollment. The Office of Personnel Management (OPM) will release information regarding the 2016 premiums and benefit changes (Continued on p. 42)

... And Get Ready to Compare, using OPM’s Comparison Tool

any employees and retirees don’t shop around to find a better health insurance plan, one whose benefits and costs better fit their personal needs. Often the reason they don’t comes down to simply not wanting to spend the time to read plan brochures or plan websites to get the information necessary to make an informed decision. It seems to be too overwhelming, even if doing so could save hundreds if not thousands of dollars in out-of-pocket costs by switching to a different plan with the same level of benefits. With the introduction of the Self Plus One enrollment type, it is more important than ever that employees and annuitants explore their plan options. The Office of Personnel Management

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(OPM) estimates that about 30 percent of current enrollments in the FEHBP are in Self and Family enrollments with only one family member — the prime candidates for making the switch to Self Plus One. Therefore, there may be as many as a million changes to Self Plus One. But if eligible, you must opt in by changing your enrollment. You can help yourself make the best decision possible by using the Plan Comparison tool on the OPM website. The tool allows you to compare up to four plans at a time and provides information, links and telephone numbers for each plan. The information for the 2016 plan year will be available by the start of Open Season, November 9. The tool is simple to use. Go to www.opm.gov/ healthcare-insurance/healthcare/plan-information/

(Continued on p. 42)

Quality health plans & benefits Healthier living Financial well-being Intelligent solutions

A whole new level of value for federal retirees Introducing Aetna Direct

Aetna Direct is unlike any other federal health plan you’ve seen. It’s not Medicare, but it works seamlessly with Medicare. With Aetna Direct you can get unmatched value for your money – low plan premiums, low out-of-pocket costs, and a large national network of doctors. Aetna Direct is a whole new level of value with: • Low monthly premiums – below the federal average • A fund to help you pay Medicare Part B premiums ($750/self and $1,500/self+family) • Waived deductibles and copayments for medical services – if Medicare Part A and Part B are primary and your provider accepts Medicare assignment

Call or go online for more details If you’re a federal retiree, and currently enrolled in Medicare Part A and Part B, check us out. There’s not been a federal plan quite like Aetna Direct. See why it could be the right plan for you.

Learn more

Visit aetnafeds.com/aetnadirect or call 1-855-277-4356

Health benefits and health insurance plans are offered by Aetna Life Insurance Company and its affiliates. This is a brief description of the features of this Aetna health benefits plan. Before making a decision, please read the plan’s applicable federal brochure(s). All benefits are subject to the definitions, limitations and exclusions set forth in the federal brochure. Plan features and availability may vary by location and are subject to change. Aetna does not provide care or guarantee access to health services. For more information about Aetna plans, refer to www.aetnafeds.com. ©2014 Aetna Inc.

2014088

Open Season Report

PREPARE (Continued from p. 40)

for the numerous insurance plans participating in these federal programs in the near future and well ahead of the starting date of Open Season to give everyone enough time to study the options and make a change if they want. NARFE will publish the new premium rates and information in both the November and December issues of narfe magazine and will post them on the NARFE website.

What to expect

For 2016, OPM told all FEHBP plans the focus will be on implementing Self Plus One coverage; encouraging participation in Medicare Part B; expanding access to care; optimizing delivery

of prescription drug benefits; promoting preventive care and wellness; advancing quality and value of care; and preparing for the Excise Tax in 2018. OPM also told plans that for 2016 they must offer a prescription drug benefit that includes at least four tiers: Generics, Preferred Brands, Non-Preferred Brands and Specialty Drugs. In addition, all plans must provide current and prospective enrollees easy and convenient access to user-friendly information about prescription drug formulary tiers and member cost-shares. For the Self Plus One type of enrollment, OPM told the plans that in no event can the premium rates be higher than those for the Self and Family enrollment type. —Federal Benefits Service Department

new face of eye health Your vision is key to a full and enjoyable life. That’s why we make eye care affordable and convenient. An award-winner for quality and satisfaction, UnitedHealthcare Vision offers surprisingly low-cost plans, an easy-to-access large network–plus standard photochromic lenses (like Transitions®) at no additional copay. Focus on your eye health. Sign up during open season. (Nov. 9-Dec. 14) www.benefeds.com 1-877-888-3337

www.myuhcvision.com/fedvip | 1-866-249-1999 UnitedHealthcare Vision® coverage provided by or through UnitedHealthcare Insurance Company, located in Hartford, Connecticut, or its affiliates. Administrative services provided by Spectera, Inc., United HealthCare Services, Inc. or their affiliates. This policy has exclusions, limitations and terms under which the policy may be continued in force or discontinued. For costs and complete details of the coverage contact UnitedHealthcare Insurance Company.

| O C T

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compare

(Continued from p. 40) compare-plans. Put in your ZIP code (be sure to check “Include Nationwide Plans”), select your “Employee Type” (employee, annuitant, etc.), and how often you get paid (salary or annuity), and you will see a list of all of the plans available to you. Check up to four plans and click on the “Compare Selected Plans” button. The next screen will show the four plans in columns, with general benefit information for each. Get more specific information by clicking on “Do Further Comparisons Between Selected Plans.” You also can do a new search to compare additional plans or go to the Consumer’s Checkbook or PlanSmartChoice sites to see how they compare the plans.

If you are a federal employee or retiree with Blue Cross Blue Shield Service Beneﬁt Plan insurance coverage you may be eligible for:

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Present your BCBS Service Beneﬁt Plan Member ID card when you arrive.

If you need hearing aids, you’ll receive a special price of $2,500 per pair of True 3 hearing aids.

Next, your unused $2,500 hearing aid beneﬁt will be applied.

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Beltone True 3 hearing aids offer six channels, two programs and wireless connectivity. Choose from In-the-Ear (ITE), Behind-the-Ear (BTE) or Receiver-In-Ear (RIE) styles.

In addition to Beltone hearing aids, many extra features are included: • • • •

Three-year product warranty, with three-year Loss & Damage coverage Three-year supply of batteries (48 cells per aid per year) 45-day money back guarantee period (restocking fee may apply) Unlimited ofﬁce visits and no membership fees – ever!

Beltone is an independent company providing discounts on hearing aids.

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

Call Beltone at 1-888-418-6763 to schedule your complimentary hearing screening, today! *The insured may need to submit for reimbursement. State and/or local taxes may apply. Prices and products subject to change. Blue Cross and Blue Shield Service Benefit Plan will pay a hearing aid benefit up to $2,500 every 3 calendar years for adults age 22 and over, and up to a $2,500 total per calendar year for members up to age 22. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in your Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under your Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefits first. To find out what is covered under your policy, contact the Service Benefit Plan. The products and services described herein are neither offered not guaranteed under any local Blue company’s contract with the Medicare program. In addition, these items are not subject to the Medicare appeals process. Any disputes regarding these products and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, BCBSA, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time. Blue Cross and Blue Shield Association is an association of independent, locally operated Blue Cross and Blue Shield Companies. State and local taxes and/or fees may apply. Available at participating locations until December 31, 2015.

Managing Money

The tricky terrain of probate, pods and tods

y August column discussed how you could use payable on death (POD) and transfer on death (TOD) designations to avoid probate on certain

assets. That column generated a significant amount of interest, and considering the number of questions and comments I received, I thought it would be beneficial to examine the top recurring questions: Q. What about retirement accounts, such as the Thrift Savings Plan (TSP), individual retirement accounts (IRAs), Roth IRAs, etc. Can I add the POD or TOD registration to these accounts? A. It’s important to understand that not all assets pass to heirs through probate. For starters, assets that have beneficiary designations, such as retirement accounts (including the TSP, traditional IRAs and Roth IRAs, to name a few), life insurance policies and annuities pass to the named beneficiaries outside of probate. Therefore, it’s unnecessary (and not possible) to add a POD or TOD designation to these types of accounts. Please note that even assets with beneficiary designations sometimes pass through probate unnecessarily. This occurs when the deceased owner listed his or her estate as beneficiary – something that should be avoided in most circumstances. Other nonprobate assets include those held in a trust and

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assets held jointly with survivorship rights, such as joint tenancy with rights of survivorship and tenancy by the entirety (which can only exist between spouses). Assets that pass to heirs through probate are those owned individually (or owned jointly with no survivorship rights), which may include real property, personal property, bank accounts and investment accounts. Q. I own accounts jointly with my wife. Will these accounts have to go through probate if I die first, and vice versa? A. We learned from the previous question that assets owned jointly with survivorship rights automatically will pass to the surviving co-owner. But there are a couple of points I’d like to make regarding joint accounts with survivorship rights. The first is that the account only avoids probate when the property passes from the deceased co-owner to the surviving coowner. Joint accounts with survivorship rights may still end

By Mark A. Keen,

CFP®

up in probate if both co-owners die simultaneously. For this reason, we like to add POD and TOD registrations to joint accounts as well. Note, however, that some financial institutions may limit PODs and TODs to individually owned accounts only. The second point is that when a co-owner dies, the surviving co-owner owns the account individually. In other words, unless the surviving co-owner subsequently adds the POD or TOD registration, the now individually owned account is subject to probate. Q. Will my heirs lose the stepup in cost basis at my death? A. Adding a POD or TOD registration in no way affects ownership of the asset and, therefore, has no impact on the tax implications associated with inheriting an asset. For example, heirs inheriting certain types of property are afforded what is known as a step-up in cost basis, which can provide a huge tax savings when the inherited property is sold. Without going into too much detail, cost basis is generally equal to the amount paid for an asset at the time of purchase, subject to certain adjustments depending on the type of asset. Here is how the step-up in cost basis works. Let’s assume Kevin invested $10,000 in ABC stock, which over time in-

creased in value to $100,000. If Kevin were to sell the stock, he would realize a gain of $90,000 and pay capital gains tax on the gain. If Kevin were to die, however, his heir would inherit the stock and receive a step-up in basis equal to the fair market value at the time of Kevin’s death. Assuming the stock was valued at $100,000 at the time of Kevin’s death, his heir’s cost basis in ABC stock would then be $100,000. If the heir subsequently sold the stock for $105,000, his or her taxable gain would only be $5,000 rather than $95,000. Q. Do TOD or POD designations impact federal estate taxes or state estate and/or inheritance taxes? A. Avoiding probate does NOT mean you avoid federal estate taxes or any applicable state estate or inheritance taxes. Whether or not your heirs will be responsible for paying estate or inheritance taxes depends on the value of your taxable estate, which may include probate assets and nonprobate assets.

Clarification: The August “Managing Money” column said TOD registrations are not available in Texas. Although Texas has not enacted the Uniform TOD Securities Registration Act (UTODSRA), financial institutions can set up a TOD account for Texas residents if another state’s law is applicable. For example, if an individual has an account with a brokerage firm whose principal office or transfer agent is located in a state that has enacted the UTODSRA, TOD accounts are available to customers of that brokerage firm in any state.

Talk with your legal or financial adviser to determine if you have estate or inheritance tax issues and explore ways to negate or minimize them. Mark A. Keen, CFP®, is partner, Keen & Pocock, 10300 Eaton place, Fairfax, VA, and an investment adviser representative and registered principal of The Strategic Financial Alliance, Inc. (SFA). Securities and advisory services are offered through SFA. Email: mkeen@keenpocock.com.

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The Informed Citizen

Better advocacy, better advocates

he State Advocacy module of NARFE’s Legislative Action Center is the starting point for electronic advocates eager to learn about and influence the legislators elected to represent them. Remember, these public servants are paid by taxpayers and want your vote when seeking re-election or higher office. Resources Described Many other resources are also freely available and will be outlined here. Clip the corner display below. When next surfing the Internet, test drive the websites and bookmark the ones you like best. Print a profile of your state legislators and governor and use it to launch a discussion of state advocacy at your October chapter meeting. Just like members of Congress, governors and state legislators are eager for you to subscribe to

their electronic newsletters. Teachable Moment Even better, take a laptop to your next chapter meeting and show your colleagues the State Advocacy PowerPoint presentation. Test your meeting site’s Wi-Fi and show off state advocacy resources to chapter colleagues. Build a cadre of state advocates. Then, invite your elected officials to speak and take questions at a chapter meeting. Coordinated properly, the culmination would

CLIP, SAVE & USE REGULARLY State legislative advocacy starts here: http://cqrcengage.com/narfe/ State_Advocacy For legislators, legislation, maps and campaign finances: www. OpenStates.org National Governors Association gateway: www.nga.org/cms/ governors/bios National Conference of State Legislatures gateway to state redistricting website: www.ncsl.org/research/redistricting/links-tostate-legislative-redistricting-websites.aspx 2015 governors’ state of state speeches: www.governing.com/topics/ politics/gov-2015-state-addresses.html Forecasting election outcomes: www.centerforpolitics.org/ crystalball/2015-governor/ PowerPoint on effective state advocacy: www.narfe.org/ppt/ NARFE_General_State_Advocacy_Powerpoint_Presentation.ppt Author’s email address to obtain this column with hyperlinks embedded for these sources and more: cfarrell@narfe.org

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By Christopher Farrell, senior analyst

be to invite the governor to the federation convention. Gubernatorial candidates also could be invited. Campaigns Listen Closely Three states elect governors in 2015 and 11 more in 2016. Candidates, especially challengers, are better listeners than office holders. Even the most earnest candidate, however, cannot hear what isn’t said. Resolve to engage in statewide and legislative races. Web Gems OpenStates.org is the gateway to state-specific listings of legislators, legislation, district maps and state campaign finance information. Used in conjunction with our State Advocacy module and legislators’ personal websites, the Web-equipped public can become well informed. The National Governors Association (www.nga.org) and the National Conference of State Legislatures (www.ncsl.org) serve as gateways to vast amounts of information. Direct to Your Inbox Governing and Congressional Quarterly provide monthly, weekly and daily newsletters collecting the best of state reporting and policy analysis. However, the first place for news impacting your pocketbook is to add your email address to your NARFE member record.

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AUG

G FUND

F FUND

C FUND

S FUND

I FUND

1 Month

0.18%

-0.11%

-6.03%

-5.80%

-7.36%

YTD

1.33%

0.68%

-2.84%

-1.24%

0.73%

1 year

2.07%

2.01%

0.55%

-0.15%

-7.23%

3 year*

1.99%

1.98%

14.37%

15.82%

8.83%

5 year*

2.04%

3.29%

15.92%

16.79%

7.38%

10 year*

3.03%

4.67%

7.21%

8.59%

4.11%

L INCOME

L 2020

L 2030

L 2040

L 2050

-1.10%

-3.06%

-4.04%

-4.69%

-5.37%

YTD

0.83%

0.13%

-0.31%

-0.61%

-0.89%

1 Year

1.54%

0.37%

-0.21%

-0.60%

-1.14%

3 year*

4.29%

7.95%

9.52%

10.67%

11.70%

5 year*

4.60%

8.64%

10.25%

11.44%

N/A

AUG

*Annualized

1 Month

*Annualized

THIS CHART is provided as a service to NARFE members who enrolled in the Thrift Savings Plan (TSP) while employed by the federal government. Retirees are not eligible for enrollment. These returns are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)

OPM Retirement Claims Processing status

Concerns about China having an adverse impact on global growth dominated during August, creating high levels of volatility across global markets. U.S. stocks were down broadly, resulting in negative returns for both the C Fund and the S Fund. Similarly, the I Fund lost ground as a result of the downturn in major foreign stock markets. Bond yields finished the month higher than where they started, leaving the F Fund with mildly negative returns. The L Funds’ returns were negative, primarily because of the influence of equity markets. —BY Sean McCaffrey, Deputy Chief Investment Officer, Thrift Savings Plan

Countdown to cola

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was unchanged in July. To calculate the 2016 cost-of-living adjustment (COLA), the indices of July, August and September 2015 will be averaged and compared with the 2014 third-quarter average of 234.242. The percentage increase, if any, determines the COLA. July’s index, 233.806, is down 0.19 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. July’s index is 1.70 percent higher than the December 2014 base index of 229.909. The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes. Month

2015

For the Record

China Concerns sent Most TSP Funds lower in August

Thrift savings Plan fund returns

Monthly % Change

% Change from 234.242

New Claims Received

Claims Processed

Inventory

% Processed in 60 days or less

October 2014

233.229

-0.40

-0.43

November

231.551

-0.72

-1.15

FEBRUARY

9,219

7,841

24,014

80.6%

December

229.909

-0.71

-1.85

MARCH

5,478

8,898

20,594

81.6%

January 2015

228.294

-0.70

-2.54

229.421

+0.50

-2.06

APRIL

6,292

8,660

18,226

72.6%

February

MAY

7,845

10,697

15,374

68.0%

March

231.055

+0.71

-1.36

68.7%

April

231.520

+0.20

-1.16

May

232.908

+0.60

-0.57

June

233.804

+0.38

-0.19

July

233.806

0.00

-0.19

june

6,920

July

9,862

7,783 7,918

14,511 16,455

69.0%

THIS CHART tracks progress by the Office of Personnel Management (OPM) in reducing its backlog of retirement claims. For data going back to October 2013, and for an update of the number of new retirement cases OPM receives each month by agency and the percent of cases with errors that it returns to those agencies, go to www.opm. gov/retirement-services/. 48

CPI-W

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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 July 31, 2015 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) Email: narferoadrunner@comcast.net

$11,444,983* Alzheimer’s research.

Signature

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

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

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

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

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

Installment Plan Wall of Fame 12-month installment plan

Give to the Scholarship and Disaster Funds

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

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

State:

ZIP:

My check is enclosed

(Please make check payable to NARFE Silver Circle.)

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

Signature

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

Date

YES!

Date

I would like to help with my contribution.

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

Amount: $

NARFE-FEEA Scholarship Fund

Amount: $

Name: Address: City:

State:

ZIP:

NARFE News

Missing something?

They Provide the answers

ne of the most popular parts of narfe magazine is the Q&A section. It provides the answers to questions commonly asked by federal employees and retirees about their federal benefits. The people behind those answers work in NARFE’s Federal Benefits Service Department. They have extensive experience in federal benefits matters. David B. Snell, director of the department, is the former chief of the Retirement Benefits branch at the Office of Personnel Management (OPM). Snell spent all of his 28 years

of civilian federal service at OPM. James (Al) Reeves was a retirement benefits claims authorizer at the Social Security Administration, a retirement/benefits counselor at NASA and an OPM retirement consultant specialist before coming to NARFE. The newest staff member, Monique V. Proctor, retired from OPM as a legal administrative specialist. Proctor, who worked 34 years at OPM, also served as a retirement claims examiner. She joined NARFE in August. At a time when the federal government is consolidating and contracting out its human resources functions,

Because of a production snafu, the “NARFE PERKS” and “The Way We Worked” sections did not appear in the September issue. narfe magazine and RR Donnelley, which prints the magazine, regret the error. Be sure to check out the NARFE PERKS pages in this issue on pp. 54-55. We have new PERKS partners, including Verizon FiOS!

and it is sometimes difficult to get through to OPM, NARFE’s federal benefits specialists are only a phone call or email away. “NARFE members are familiar with the Q&A in the magazine, but I am surprised when they don’t realize that we have staff at Headquarters ready, willing and able to answer their individual questions,” says NARFE President Richard G. Thissen. “You don’t have to thumb through back issues of the magazine to find answers to your questions. You can contact our experts at fedbenefits@narfe.org.”

Combined Federal Campaign Update. After the story on changes coming to the Combined Federal Campaign (CFC) was published in the August issue of narfe magazine (p. 30), the Office of Personnel Management announced it will change the effective date for rules modernizing the CFC from the 2016 campaign to the 2017 campaign, in part to ensure its new online charity application and donor pledging systems are thoroughly tested and fully operational. Monique Proctor

Silver circle Donors Update As of August 15, NARFE’s Silver Circle donation program stood at $135,125. The program gives members a vehicle to donate to the Association beyond the norm. Donors of $25 or more are listed in narfe magazine and receive a Silver Circle pin. Donors of $1,000 or more have their names engraved on the Wall

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of Fame at NARFE Headquarters. Donors from April 16-August 15 are listed here with their chapter numbers: Arizona: Dianna D. Dimick, 1400. California: Martin E. Kocher, 0004. Colorado: Thomas R. Reynolds, 0355. eNARFE: Carmen Desoto, 2363. Florida: William S. Jeffries, 1552. Georgia: Betty L. Godwin, 0316; A.D. Brown, 1020. Hawaii: Michael M. Serikaku, 1657. Illinois: M. Irene Spaletto, 1771. Maryland: Charles H.

Schaub, 1888; Mark Noblett, 2262; Richard Ousley, 2306. Massachusetts: Andrew J. Puccino, 0434; Donald E. Burgess, 0479. Michigan: Stephen N. Skinner, 0376. Mississippi: Helen P. Thomas, 0968. Nevada: Donald N. Babb, 2167. New Jersey: Barbara Silvers, 0411. New York: Robert L. Acerno, 0023. Virginia: William H. Briscoe, 0356; John Bankson, 1159. Washington: Gerald F. Owens, 0237; Donald A. Binder, 1192.

This Button Saves Lives! Get Peace of Mind and Independence with Medical Alert Monitoring! Round-the-clock monitoring with a Medical Alert system not only provides you with peace of mind, it also assures you and your loved ones that you’ll never be alone. With the Medical Alert system, a simple button device can be worn anywhere— even in the shower. If emergency help is needed (medical, fire or police), push the button and a certified operator responds immediately.

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Includes Everything You Need • Base Unit • Waterproof Pendant or Wristband

Free Equipment Sales and Monitoring Agents Based in the USA

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Special Offer for NARFE Subscribers Order Now & Get a 2nd Button and Lockbox

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1-800 -983-7855

Call for More Information:

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No HOME PHONE, No Problem! Ask About Our Mobile Solution!

Name: Address: City: __________________________________ St: ______ Zip: ______________ Phone: Email: ________________________________________________

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Mail to: Medical Alert, 53 West Baltimore Pike, Media, PA 19063

Active and Retired Federal Employees ...

JOIN NARFE TODAY!

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

Who Should Join?

Three Easy Ways To Join 1. 2. 3.

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

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

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

n Please enroll my spouse

City _______________________ State _____ zIp ________

Spouse’s Full Name ________________________________

phone (__________) _______________________________

Spouse’s Email ____________________________________

Email____________________________________________

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

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

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

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

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

yyyy

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

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

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

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

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

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

–

Civil Service Annuity Number

–

C S

–

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

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

NARFE MEMBERSHIP INFORMATION

Street Address ___________________________________

NARFE Membership ID ____________________________________

Apt./Unit________________________________________

NARFE Chapter Number____________________________________

City _________________________ State _____ ZIP _____

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

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

yyyy

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

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

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

Signature of Annuitant or Survivor-Annuitant

Date

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

DW-2 (08/12)

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

ID Shield new 571-830-5489 www.legalshield.com/info/narfe LegalShield along with Kroll will monitor more of what matters: We monitor your identity from every angle, not just your Social Security number, credit cards and bank accounts. We make sure everything connected to you is safe, including your passport, email, phone numbers, driver’s license number, medical IDs and more. This takes the work required to restore your identity off of your shoulders, placing it in the hands of a licensed fraud investigator. NARFE members receive the discounted rate of $8.95 for individuals and $17.97 for families when you sign up through the website above.

LegalShield new 571-830-5489 www.legalshield.com/info/narfe Whether it’s big, small or somewhere in between, you have affordable legal help when you need it. With your legal plan, you or your family members can contact your law firm anytime you need legal advice or assistance, 24/7. NARFE members receive the discounted rate of $17.95 for individuals and $18.95 for family of 10 (two adults and up to 8 children) when you sign up through the website above.

NARFE Premier Federal Credit Union 800-328-1500 www.NARFEpremierfcu.org As a member of NARFE, you are eligible to join NARFE Premier Federal Credit Union, serving active and retired federal employees and their families since 1935. The credit union puts members first by offering low-rate loans, a high-interest checking account, the latest in technology including mobile banking and the 54

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ability to deposit a check from your smart phone! NARFE Premier FCU’s Online Banking and Bill Pay is secure, fast and very user friendly. The credit union offers members nationwide access to more than 5,000 shared branches and 56,000 surcharge-free ATMs. Accounts are insured by NCUA up to $250,000.

signed specifically for the federal family, the Federal Long Term Care Insurance Program offers a smart way to help protect savings and assets, and remain independent should you need long-term care services someday. Start planning for the future. Visit www.LTCFEDS.com today.

For more information, call 800.328.1500, email jparish@narfepremierfcu.org or visit www.narfepremierfcu.org.

Moving services insurance

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

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

Federal Long Term Care Insurance Program 800-LTC FEDS www.LTCFEDS.com Make long-term care insurance part of your retirement plan. With benefits de-

Bekins Van Lines 800-248-4810 www.narfe@bekins.com All NARFE members will receive contracted pricing for all interstate shipments. This will apply to packing, transportation and full-value coverage against damages. In addition, Bekins Van Lines can assist with international moves with competitive pricing and quality service. Please mention you are a NARFE member, and we look forward to providing you with a stress-free relocation from start to finish. Call or email us today to start your relocation process: 800-456-6832, narfe@bekins. com. Please mention you are a NARFE member.

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

narfe merchandise

NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.com As the official provider of NARFE merchandise, the NARFE General Store offers NARFE-approved name badges, business cards, clothing, accessories, cups and mugs, plaques and clocks, and much, much more. Check out our online catalog for our customizable product line.

Technology new

Verizon FiOS www.narfe.org/memberperks Members of NARFE can save up to $10 a month on a new qualifying Triple Play bundle with Verizon FiOS – a savings of up to $120 per year on Internet, TV and phone service! With fiber-optic fast Internet, you can stream movies and videos any time of the day or night, on America’s most reliable network. Verizon FiOS offers over 155 channels, many in HD, and more than 100,000 titles available free through On Demand. Plus, Verizon FiOS home phone service lets you talk all you want, when you want, with unlimited calling across the U.S. and to Canada and Puerto Rico – on a network with 99.9% reliability. Visit www.narfe.org/memberperks for more information on how to redeem.

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. Join the Choice Privileges® rewards program and earn points with every qualifying stay toward free nights, Airline Rewards, gift cards, charitable donations and more. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer. Advance reservations required.

Wyndham Hotel Group 800-364-6176 NARFE members receive up to 20% off the “Best Available Rate” at participating Wyndam Hotel Group locations worldwide. To receive discount, call our special member benefits hotline at 1-800-364-6176 and give the agend your special discount ID number, 8000002694. So, whether you are looking for an upscale hotel, an all-inclusive resort or something along the way, we have the right hotel for you ... and at the right price. So start saving now. Call and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Wyndham Grand Hotels and Resorts®, Wyndham Garden®, TRYP® by Wyndham, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites® by Wyndham, Howard Johnson®, Travelodge® and Knights Inn®.

travel

Local Hospitality www.narfe.org/travel

new

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! Visit the website today to search, book and save on your travels.

National You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation, call National Car Rental at 1-800-CARRENT® and reference Contract ID 5282909. For complete terms and conditions, visit www.narfe.org/ memberperks.

Alamo Drive Happy® with Alamo® where NARFE members receive year-round

discounts. Call 800-331-1441 and mention ID# A991900. For complete terms and conditions, visit www.narfe.org/ memberperks.

Wellness

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

Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct the following screenings using state-of-the-art ultrasound technology in your neighborhood. 1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease. You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share these test results with your doctor. All four screenings cost just $135. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website. Coverage may vary and may not be available in all states.

NARFE Member Perks are designed to provide NARFE members with a quality option in their search for commonly used products and services. NARFE makes no guarantee on any products and services listed and encourages its members to shop and compare before making a decision on any financial matter. w w w. n a r f e . o r g

The Way We Worked

Some early text messengers This photo, circa 1960, shows Federal Register employees consulting early presidential election records. The Office of the Federal Register has been part of the National Archives since 1935. It provides access to the official text of federal regulatory material; federal laws; presidential douments; and federal organizations, programs and activities. It also administers the Electoral College and the Constitutional Amendment Process. Its Federal Register, a legal newspaper, is published every business day. Photo courtesy of Rebecca Brenner, National Archives History Office, Records of the National Archives; in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. To join, visit http://shfg.org. 56

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Did you know? Initially, all Federal Register publications were printed, but now all are available online. You can access the current issue of the Federal Register, or view daily issues dating to 1994, at: • www.gpo.gov/fdsys/. Click on “Browse Government Publications,” then select Federal Register; or • www.federalregister.gov/ articles/current.

Control what you can. Insure what you can’t. Available to NARFE Members and spouses age 65 and older with guaranteed acceptance.*

You can control what you eat, how much you exercise, and many other healthy life choices. But if something unexpected should happen, can you control your health care choices and receive the quality of care you deserve? You can manage many aspects of your life, but sometimes life has a mind of its own. An unexpected serious illness or injury can happen to anyone at any time, and have more than a negative impact to your personal savings and retirement. The NARFE Hospital Income and Short Term Recovery Insurance Plan can help you protect the savings you’ve worked so hard for and can help take control of your health care choices — allowing you to keep your self reliance, and receive the level of care you want after leaving the Hospital. This plan pays you, or anyone you choose, cash benefits for Hospital stays and for home recovery expenses you often need after you leave the Hospital, including: home nursing, physical therapy, occupational therapy, speech therapy, home health and homemaker services, and more — helping you to recover with the quality of care you’ve earned.

NARFE Short Term Recovery Insurance: • Up to $1,450 in cash benefits for each inpatient Hospital stay for a covered Injury or Sickness.

– Days 1–14, up to $750 — Days 15–30, an additional $500 – After 30 days, an additional $200.

• Up to $8,000† a year in cash benefits ($200 a day) for daily home recovery care expenses after a Hospital stay. • Cash benefits are paid in addition to any other coverage you may already have, and you can use the money however you choose. • Coverage that cannot be canceled because of your health or your age. • Economical group rates negotiated by NARFE for our members.

The NARFE Hospital Income and Short Term Recovery Insurance Plan Learn more today! Call 1-800-233-5764 or visit www.narfeinsurance.com Request Number 070351-1-1-1 Hearing-impaired or voice-impaired members may call the Relay Line at 1-800-855-2881. *Insurance benefits payable are subject to your policy’s Pre-Existing Conditions Limitation. † Benefits reduce to $4,000.00 a year at age 80. All benefits are subject to the terms and conditions of the policy. Policies underwritten by Hartford Life and Accident Insurance Company detail exclusions, limitations, reduction of benefits and terms under which the AR Ins. Lic. #100102691, CA Ins. Lic. #OG39709 policies may be continued in full or discontinued. Plans may vary by state. In CA d/b/a Mercer Health & Benefits Insurance Services LLC The Hartford® is The Hartford Financial Services Group, Inc., and its subsidiaries, including issuing company Hartford Life and Accident Insurance Company. 70351 (10/15) Copyright 2015 Mercer LLC. All rights reserved. SRP-1151 A (HLA) (5384)

Black Exclusive 3-POCKET SWEATSHIRTS! That’s right... 3 Pockets! A comfortable sweatshirt you won’t find anywhere else! Constructed of super soft, brushed fleece with an extra roomy fit, it features a handy chest pocket, two non-bulky side pockets, banded crew neck, cuffs, and bottom. Polyester/cotton is machine wash & dry. Order Now! Grey

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