November 2015 NARFE Magazine

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The ebb and Flow of CSRS

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FEHBP PREMIUMS

COVER STORY

THE HARD JOB OF OPM Just Got Harder

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Volume 91 • Number 11

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WashingTon Watch

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Short-Term Funding Bill Keeps Government Open ... for Now

Big Medicare Premium Increase Moves Closer for CSRS Retirees

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NARFE Opposes Parts of New Postal Reform Bill

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Competitive Service Bill Passes Senate

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Paid Parental Leave Bill Introduced in Senate

9 OPM Data Breach Updates 10 NARFE President Meets With OPM Acting Director

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12 NARFE Bill Tracker Cover Story The hard job of opm just got harder. Major database breaches provide new challenges for the Office of Personnel Management, an agency that has a big impact on feds.

Columns

4 From the President 56 Managing Money 58 The Informed Citizen DEPARTMENTS

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spotlight on CSRS. Federal employees covered by the Civil Service Retirement System now make up a small and diminishing portion of the workforce.

16 Questions & Answers 60 For the Record: TSP

Returns, Retirement Claims Status, Countdown to COLA

62 NARFE News 68 The Way We Worked On the Web special section

visit us online at:

40 Open Season Report:

www.narfe.org

Premiums

like us on facebook:

NARFE National Headquarters follow us on twitter:

@narfehq

ON THE COVER

Illustration by Bill Pragluski, Critical Stages, LLC

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november 2015 | Volume 91 | Number 11

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

Your Questions answered

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hen I meet federal employees and retirees who are not NARFE members, they often

ask me about NARFE’s mission. Regular readers of this column know that NARFE’s mission statement appears each month at the lower left of this page. I paraphrase it by saying that the Association’s mission is to protect and enhance federal employees’ and retirees’ federal benefits and to provide service and support to members.

I tell them that, historically, NARFE has been involved in every major advancement in federal employee retirement and health benefits for the past 94 years.

On the other hand, when I talk with existing NARFE members, some ask me what NARFE

has done for them lately. I tell them that NARFE has been very successful in preserving the health and retirement benefits we enjoy, despite the fact that they have been under constant attack in the past several years.

I emphasize that federal retirees have not lost any benefits in more than 20 years. Active feds, unfortunately, have fared less well due to pay freezes, furloughs, government shutdowns and increased retirement contributions for new hires.

However, NARFE has been able to defeat the great majority of the legislation that would have had a detrimental impact on current and former federal workers. I point to NARFE’s work just this year in preventing any of the $318 billion in cuts to the pay and benefits of federal employees and retirees that were proposed in the budget.

With regard to member support, NARFE’s service program continues to improve. We now have full staffing in our Federal Benefits Service Department, and we recently launched the first of a series of webinars and electronic Q&A sessions on retirement planning.

We continue to be a very proactive and vibrant association. We are making our voices heard in the halls of Congress and in statehouses nationwide to further our mission to support and protect our members and – indeed − all federal employees and retirees.

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

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

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Washington Watch

Short-Term funding bill keeps government open; New deadline is Dec. 11

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ith only hours left to go until the start of the new fiscal year, Congress kicked the budget can down the road, passing a stop-gap spending

bill on September 30 that funds government agencies until December 11. The path to this “victory” wasn’t easy, however, and it is worth taking a look back at how it was achieved.

Angered by videos of alleged Planned Parenthood activities, many in the Republican Caucus in both chambers of Congress said they would vote against any fiscal year 2016 appropriations deal that did not defund Planned Parenthood. Answering these calls, Senate Majority Leader Mitch McConnell, R-KY, allowed votes on a short-term continuing resolution (CR) that prohibited federal funds for the organization. With six Republicans voting against, however, the CR failed, and McConnell brought a “clean” CR, without the prohibition, to the floor.

As the Senate was debating the merits of federal funding for Planned Parenthood, few in Congress were aware that the situation in the House was about 6

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to turn on its head. Letting the Senate take the lead on the CR, House Speaker John A. Boehner, R-OH, was becoming increasingly frustrated with his apparent lack of control over members of his party’s far right wing, many of whom were willing to shut down the government over the Planned Parenthood issue. Knowing that the 2013 shutdown was largely blamed on the GOP, a shutdown was unlikely to do current Republican members of Congress any favors. It would appear Boehner hit a breaking point on September 25, when he shocked many by announcing his resignation from both his leadership post and his congressional seat, effective at the end of October.

Not to let the outgoing Speaker

fail in one of his last acts, the House followed the Senate and passed the Senate’s clean CR in the afternoon of September 30.

Federal employees were relieved to know they could go to work the following day. However, with the CR expiring on December 11, the future is far from certain.

As this issue went to press, talk of a long-term budget deal was percolating again in Congress.

Leaders of both parties and the White House have said they want to reach an agreement to lift sequestration – the tight caps on annual discretionary programs that have hindered government services in domestic agencies and the Department of Defense.

Many on all sides of the budget debate agree sequestration is bad for our country, but how to offset it remains an ongoing point of contention. Federal employees and retirees know all too well that any deal offsetting sequestration’s arbitrary cuts would come at the expense of their pay and benefits.

Indeed, the 2013 Ryan-Murray budget deal increased retirement

contributions for new federal employees to partially offset sequestration.

With new leadership in the House (not yet announced at press time), it’s anyone’s guess what December might bring.

Many pundits are predicting a government shutdown in December. The probability increases not only because of the leadership change, but because Congress must deal with other looming deadlines before the end of the year, including providing funding for the Highway Trust Fund and increasing the debt limit. What happens next likely will bring nothing short of fireworks.

—By Jessica Klement, 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.

50 PERCENT MEDICARE PREMIUM INCREASE IS A STEP CLOSER FOR CSRS RETIREES

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t press time, some federal retirees were another step closer to a more than 50 percent increase in Medicare Part B premiums in 2016. With the second of three months of consumer price data in, it looks unlikely that there will be a cost-of-living adjustment (COLA) to Social Security benefits and federal retirement annuities.

Federal retirees may be confused, and that is understandable. NARFE Headquarters is getting many questions about this situation. Retirees are asking: “Is my annuity staying flat because I am not getting a COLA? And that somehow means I will be paying 50 percent more for my Medicare coverage?”

If that doesn’t sound fair, it’s because it isn’t. But it is the reality, an unintended consequence of the so-called “hold harmless” provision in the Social Security Act, which states that the dollar increase in the Medicare Part B premium is limited to the dollar increase in an individual’s Social Security benefit. With no COLA expected in 2016, an estimated

70 percent of Medicare beneficiaries will be held harmless, meaning their Part B premium will remain stable at $104.90.

Unfortunately, the remaining 30 percent of Part B beneficiaries, including federal retirees covered by the Civil Service Retirement System (CSRS) and who do not receive Social Security benefits, are projected by the Medicare Trustees to shoulder the full cost of the 2016 premium increase, resulting in an increase for them of 52 percent – from $104.90 to $159.30 per month.

NARFE has asked the administration to use the full degree of its flexibility and authority to set premiums below those projected.

However, by the time you are reading this, 2016 premiums likely will have been announced.

If no administrative relief occurs, NARFE will focus its attention on Congress to produce a legislative fix. If you haven’t done so already, please contact your members of Congress by using the NARFE Legislative Action Center at www.narfe.org or by calling, toll-free, 866-220-0044.

(For updates, see box below.)

—By John Hatton, Deputy Legislative Director

For the latest updates on the Medicare premium increase for CSRS retirees, please check the NARFE website, www.narfe. org, or call the NARFE Legislative Department at 703-8387760, ext. 201. w w w. n a r f e . o r g

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Washington Watch

NARFE Opposes parts of new Postal reform bill

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ARFE has expressed concerns about a recently introduced bill to reform the U.S. Postal Service because it would increase health care costs for postal retirees and reduce workers’ compensation benefits for injured federal and postal employees. However, the Association said the bill in other respects represents a “significant improvement” over a similar bill introduced in the last Congress.

The Improving Postal Operations, Service and Transparency (iPost) Act of 2015 (S. 2051) was filed September 17 by Sen. Thomas R. Carper, D-DE, ranking member of the Senate Homeland Security and Governmental Affairs Committee. Carper is a key figure driving postal reform efforts. While the future of the bill is uncertain, it may represent the starting point for congressional action on postal reform.

With regard to retiree health insurance, the legislation contains a provision that NARFE opposes and is identical to one included in a bill, also sponsored by Carper, that was approved by the committee in the last Congress. It would require postal retirees to enroll in Medicare Part B in order to continue receiving their current health insurance coverage through the Federal Employees Health Benefits Program (FEHBP). This provision would increase total health insurance premiums paid by postal retirees, who would have to pay both full Medicare Part B premiums and FEHBP premiums.

“Postal retirees earned their health benefits throughout long careers

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of service,” said NARFE President Richard G. Thissen. “They should not be required to pay for additional health insurance coverage as a condition of continuing to receive those benefits.”

The bill also would reduce the injured federal workers’ compensation benefit by 25-33 percent for all federal workers at retirement age and eliminate the supplemental benefit for injured workers with children or other dependents.

These provisions would apply to injuries that occurred after the date of enactment of the legislation. This is a change from last year’s legislation, which also would have affected current Federal Employees’ Compensation Act recipients.

If the bill passes, injured employees would not be afforded the level of income security they would have earned had they been able to continue working, NARFE contends. According to the Government Accountability Office, federal workers disabled as part of their service would receive up to 35 percent less in retirement income than if they had not been injured and retired after 30 years.

NARFE supports other provisions in the bill, including improved service standards and the maintenance of six-day and tothe-door delivery where it exists today. NARFE also was pleased that the current bill does not include a provision to allow bargaining over retirement benefits for new postal employees.

“The U.S. Postal Service is in need of reform and, in particular, relief from its overly burdensome

MYTH vs.

REALITY Myth: Cost-of-living adjustments (COLAs) for federal retirees are determined in the same manner as pay raises are for federal employees.

Reality: COLAs and pay raises are determined differently. Yearly federal retiree annuity COLAs are provided under an automatic plan using the Bureau of Labor Statistics’ CPI-W. To calculate the COLA, the indices of July, August and September are averaged and compared with the previous years’ third-quarter average. The percentage increase, if any, determines the COLA. Congress and the president do not have to authorize or determine the COLA. The goal of a COLA is to help retirees’ annuities keep pace with inflation.

Meanwhile, pay raises for federal employees must be authorized and determined

by Congress or the president on a yearly basis.

Pay raises are provided to employees to ensure their pay remains competitive with private-sector pay.

prefunding requirement,” said Thissen. “Fixing the financial security of this vital institution should not, however, rest with those men and women who deliver our mail, or who are injured in the line of duty. While this legislation makes strides in addressing some of the problems the Postal Service faces, federal and postal employees and retirees would pay too high a price to return it to financial stability.”

—By John Hatton, Deputy Legislative Director

Competitive service bill unanimously passes senate, pending in House

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ARFE applauds the Senate’s passing of S. 1580, the Competitive Service Act, by unanimous consent on September 17. S. 1580 would allow federal agencies to review and select job candidates from other federal agencies’ lists of “best qualified” applicants.

Enactment of the bill would enable applicants who already have undergone a competitive assessment process and are certified as eligible for selection to be consid-

ered for more than one job with the federal government without submitting duplicate applications.

Ultimately, this would speed up the hiring process and allow agencies that have similar hiring needs to share information, which they currently cannot do.

The legislation would require the Office of Personnel Management to develop guidelines for how federal agencies would share qualified applicants, promoting more cross-agency communica-

tion and overall benefitting potential hires.

S. 1580 was introduced by Sens.

Jon Tester, D-MT, and Rob Portman, R-OH. A House companion bill, H.R. 2827, was introduced by Reps. Gerald E. Connolly, D-VA, and Rob Wittman, R-VA, and is still in the House Oversight and Government Reform Committee. It is unclear if the House will consider the legislation.

—By Carolyn Dorf, Legislative staff assistant

Paid Parental Leave bill introduced in senate

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bill to provide paid parental leave to federal employees has been introduced in the Senate. S. 2033 was filed September 15 by Sens.

Brian Schatz, D-HI, and Barbara A. Mikulski, D-MD. A companion bill, H.R. 532, was introduced in the House in January by Rep. Carolyn Maloney, D-NY. At the NARFE National Convention in August 2014, delegates

voted to add paid parental leave for federal employees to the Association’s legislative program.

When the House bill was introduced, NARFE President Richard G. Thissen participated in a press conference and expressed NARFE’s support for the legislation.

The United States is the only industrialized nation whose civil service employees do not receive

a single week of paid parental leave after the birth or adoption of a child. The bills provide federal employees six weeks of paid leave for the birth or adoption of a child.

NARFE is asking its members to use the NARFE Legislative Action Center at www.narfe.org to contact their members of Congress to seek their cosponsorship of the bills.

—By Jessica Klement, Legislative Director

UPDATES: OPM Names contractor for second breach notification, increases estimate of stolen fingerprints to 5.6 million The Office of Personnel Management (OPM) and the Department of Defense on September 1 named Identity Theft Guard Solutions, doing business as ID Experts, to provide three years of identity theft and credit monitoring services to the individuals whose personal information was stolen from OPM’s background investigations database. Notices to individuals affected by this breach began being mailed on September 30. All notifications will be via postal mail from OPM. This is the second of the two OPM data breaches announced earlier this year.

On September 21, OPM revealed that it has determined that the fingerprints of 5.6 million individuals were stolen in the breach of the background investigations database. The agency originally said the number of individuals whose fingerprints were stolen was 1.1 million.

For additional information, see OPM’s cybersecurity website, www.opm.gov/cybersecurity. NARFE also posts updates on its website, www.narfe.org.

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Washington Watch

NARFE President talks priorities with OPM Acting director cobert

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n October, NARFE President notification process for the 21.5 Richard G. Thissen met with million people who were affected Acting Office of Personnel Man- by the background investigations agement (OPM) Director Beth breach.

Cobert to discuss the Association’s Thissen took the opportunity priorities and ways OPM and to express frustration with the NARFE can work together to keep slow rollout of phased retirement federal employees, retirees and throughout the federal government. He reminded Cobert of a their families informed and up letter NARFE sent to the Chief to date on the latest information Human Capital Officers (CHCO) on the OPM data breaches (see Council asking for feedback from updates, p. 9). the 25 agencies on the Council on In the hour-long meeting at their plans to implement phased OPM Headquarters, Thissen and retirement. Cobert said OPM is Cobert discussed the latest news working on the breaches, including the 1:28 PM 2015-16_PAC_Coupon_2013 Coupon 6/8/15 Page 1 on collecting that data.

NARFE President Thissen, left, meets with OPM Acting Director Cobert.

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)

q $25/month

Credit Card Information

q $10/month

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

q Other: ______/month (minimum of $10) OR

Type:

q MasterCard q VISA q Discover q AMEX

Card #:__________________________________

I would like to make a one-time contribution of:

Expiration Date: ____ / ____

q $250 - Gold

Name on Card: ___________________________

(qualifies for Gold lapel pin and duffle bag)

q $100 - Silver (qualifies for Silver lapel pin) q $50 - Bronze (qualifies for Bronze lapel pin) q $25 - Basic (qualifies for Basic lapel pin) q Other: ______ q I do not want to receive any gifts for my contribution marked above.

Signature:_______________________________ Date: ___________________________________

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

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: 2 (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.

Passed the House on 9/28/15

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: 78 (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)

12

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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

NARFE’s Position:

Oppose

Support

narfe, April 2015

No position

ISSUE

Federal Compensation

Bill Number / Name / Sponsor 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: 172 (D), 47 (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 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.

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

S. 2051: The Improving Postal Operations, Service and Transparency Act (iPost) of 2015 / Sen. Thomas R. Carper, D-DE Cosponsors: 0

Campaign finance

H.R. 20: The Government By the People Act / Rep. John Sarbanes, D-MD Cosponsors: 154 (D), 1 (R) H.R. 973: Social Security Fairness Act of 2015 / Rep. Rodney Davis, R-IL

GPO/WEP

Cosponsors: 96 (D), 25 (R)

Latest action(s)

narfe, April 2015

Referred to the House Committee on Oversight and Government Reform

Referred to the Committee on Homeland Security and Governmental Affairs

Requires postal employees and retirees to enroll in Medicare in order to continue receiving their current health insurance coverage through the Federal Employees Health Benefits Program and cuts workers’ compensation benefits prospectively for federal workers disabled by a workrelated injury or illness.

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Reforms campaign finance laws to put small donors on par with wealthier donors.

Provides a tax credit for contributions and government matching contributions.

Referred to three House committees

See story, p. 8

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: 13 (D), 4 (R)

narfe, September 2015

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

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13

Washington Watch

narfe bill tracker

(Continued from p. 13) ISSUE

Bill Number / Name / Sponsor H.R. 2827: Competitive Service Act / Rep. Gerald E. Connolly, D-VA Cosponsors: 1 (R)

federal hiring

What Bill Would Do

Latest Action(s)

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

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

Passed the Senate on 9/17/15 See story, p. 9

Cosponsors: 2 (D), 4 (R)

H.R. 532: Federal EmAllows federal employees six weeks of paid leave for the birth ployees Paid Parental Leave Act / Rep. Carolyn or adoption of a child.

Maloney, D-NY Cosponsors: 55 (D), 1 (R) Paid parental leave

narfe, May 2015

S. 2033: Federal Employees Paid Parental Leave Act / Sen. Brian Schatz, D-HI

Referred to the Senate Committee on Homeland Security and Governmental Affairs

Cosponsors: 1 (D)

DC Statehood

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

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

See story, p. 9 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: 22 (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: 124 (D)

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

Cosponsors: 5 (D), 1 (I)

COLA Measurement

14

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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: 10 (D) living adjustments in retirement benefits.

NARFE’s Position:

Support

Referred to the Senate Committee on Homeland Security and Governmental Affairs Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Government Reform, and Armed Services narfe, October 2015 Oppose

No position

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Questions & Answers

The following Questions & Answers were compiled by NARFE’s Federal Benefits Service Department staff.

NARFE does not provide advice or assistance on legal, financial planning or tax matters.

employees Should I buy back my military time?

Q

I’ll be retiring next year under the Civil Service Retirement System (CSRS) with almost 36 years of civilian service and four years of military service. Is it necessary to pay a deposit and buy back my military time?

A

Under CSRS, if your federal civilian service started before October 1, 1982, you do not have to pay the military deposit to get credit for your military service. However, if you do not pay the military deposit and are or will be eligible for Social Security benefits, your annuity will be reduced at age 62, when you become eligible for Social Security benefits.

If your federal civilian service started on or after October 1, 1982, you must make a deposit to get any credit at all for your years of military service in the computation of your annuity.

You should speak with your agency benefits officer about this 16

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long before your planned retirement date.

CSRS Offset and Social Security

Q

I’m under the CSRS Offset provision because I had a break in service and came back to work for the government in 1988. I am going to retire at age 68 and have not yet applied for Social Security benefits. Will my Civil Service Retirement System (CSRS) retirement annuity be reduced by the amount of Social Security benefits that would have been payable at age 62 or the amount that will be payable on the date I retire?

A

The reduction will reflect the amount of the benefits payable on the date you

retire.

The computation of the amount your civil service annuity is reduced is the lesser of: • The portion of the Social Security benefit that is attributable to the CSRS Offset time, or • A figure equaling total CSRS Offset years divided by 40, multiplied by the total Social Security benefit.

retirees 2016 Medicare Part B Premium Increase?

Q

I read in the October issue of narfe magazine that federal retirees who do not receive Social Security benefits may see a big increase in their Medicare Part B premiums for 2016. If so, how much will that be?

A

Medicare Part B premiums are scheduled to increase for 2016. Social Security law has a provision that provents any decrease in Social Security benefits. If there is no cost-of-living adjustment (COLA) triggered for 2016, Social Security recipients who have Medicare premiums deducted from their payments will not be subject to the Part B premium increase. That means that other Part B enrollees, such as Civil Service Retirement System annuitants who do not receive Social Security benefits, will have to shoulder the Part B premium increase by themselves, which will cause those enrollees to pay a much higher premium than if the increase was spread out among all Part B enrollees.

This happened in 2010 and 2011 when there was no COLA triggered. At press time, the premiums for 2016 have not officially been announced, but we believe they will be $159.30 a month.

(See story, p. 7, for information on NARFE activity to prevent the increase.)

Problem finding a Workers’ comp doc

Q

I am a NARFE chapter officer. One of our members has been receiving payments from the Office of Workers’ Compensation Programs (OWCP) for years, but his doctor told him that he no longer was accepting OWCP patients. His OWCP caseworker gave him the name of another doctor, but that doctor would not take him on as a new

patient due to his medical history.

Can you help with names of doctors who accept OWCP patients?

A

The member might want to try this website: www. findfedcompdoc.com/.

The site states: “On this site you will find a directory of injured federal worker-rated doctors, clinics and other health care givers who have been recommended by the patients they have treated.

You also can use this website to learn how to find a good, qualified, experienced OWCP doctor who can give you both the medical care you need and the medical documentation required by the Department of Labor – Office of Workers’ Compensation Programs (OWCP).”

GPO eliminates spousal social security benefit

Q

I have a question regarding item 4 (on Social Security) in the article titled “Top 10 Things a Spouse Should Know About Federal Benefits,” which appeared in the September issue of narfe magazine (p. 30). Both my husband and I worked for the federal government, under the Civil Service Retirement System (CSRS), and in Social Security-covered jobs. I am, currently, a survivor annuitant.

My husband retired under disability from government service in 1985. He received retirement benefits from both the government and Social Security (Social Security being the larger of the two) until his death in 2009.

I retired in 1987 with 32 years of government service. After working 46 quarters under Social Security, I started collecting Social Security at age 62 at a reduced rate, which was further reduced by the Windfall Elimination Provision (WEP). At that time, the Social Security Administration told me that I couldn’t collect on my husband’s Social Security earnings; unfortunately, I don’t recall the reason.

The article referenced above is very interesting, but I don’t see a clear-cut answer in relation to my situation. Have the rules been changed? As a widow, am I entitled to a portion of my husband’s Social Security benefits?

A

The Government Pension Offset (GPO) likely is the reason you cannot collect on your spouse’s Social Security earnings. The GPO rules regarding a spouse’s entitlement to a portion of his or her spouse’s Social Security benefits have not changed.

You are entitled to a portion, but whatever amount you are entitled to is reduced by two-thirds of your CSRS retirement. The offset often erases any benefit due. Information on the GPO may be found on the Social Security Administration website at www.ssa.gov/pubs/ EN-05-10007.pdf.

Disability retirement medical review

Q

I retired on disability under the Civil Service Retirement System. At what point does the government w w w. n a r f e . o r g

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17

Questions & Answers

stop requiring medical reviews to determine whether I am recovered from my disabling condition?

A

The Office of Personnel Management has the right to request that a disability annuitant provide current medical information and/or undergo re-examination annually until the annuitant reaches age 60.

FEHBP, Medicare and Other Insurance

Q

I left federal employment after 28 years, took an early out in 1994 and continued to pay for Blue Cross (BC) health insurance coverage

under the Federal Employees Health Benefits Program (FEHBP).

I immediately went to work for a major corporation offering a health plan, which I declined because I chose to continue the FEHBP. At age 65, I became eligible for Medicare Part B, which I declined. I am now 74 years old.

The company I work for has an open season this October, and I was told that if I elect the company-sponsored plan during this year’s open season (and still keep the BC in the FEHBP), the company plan will be primary and FEHBP secondary, which I understood.

I also was told that if I retire from the company at the end

of 2016, it would be considered as a “life-changing event.” The company-sponsored plan requires that if I retire, I can keep its plan at no annual premium. However, if eligible for Medicare, I must select Medicare as primary and its plan as secondary to Medicare.

The reason for re-visiting this question is that they said that I would not be subject to the 10 percent per year penalty based on the above. Could you comment on this? It is not a straightforward situation, and I would consider dropping to a low-option FEHBP plan along with the companysponsored retirement plan and Medicare B if this makes financial sense.

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The explanation in the Medicare literature states clearly that if, at the time you are eligible to enroll in Part B, you are covered by your (or your spouse’s) employer group health plan, you can wait until you retire to enroll in Part B without incurring the late enrollment penalty.

Here’s what it states: “Once your Initial Enrollment Period ends, you may have the chance to sign up for Medicare during a Special Enrollment Period. If you didn’t sign up for Part A and/or Part B when you were first eligible because you’re covered under a group health plan based on current employment (your own, a spouse’s, or if you’re disabled, a

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family member’s), you can sign up for Part A and/or Part B: • Anytime you’re still covered by the group health plan • During the 8-month period that begins the month after the employment ends or the coverage ends, whichever happens first.

Usually, you don’t pay a late enrollment penalty if you sign up during a Special Enrollment Period.”

In your situation, however, you were not covered by your employer’s health plan when you turned age 65 and first became eligible for enrollment in Part B. Our opinion is that even if you were to enroll in your company health plan now and then enroll in Part B, you still would be subject

to the late enrollment penalty.

However, Social Security is the ultimate authority and will make the determination.

Also, keep in mind that Part B premiums are income-related.

The current monthly premium of $104.90 is based on a yearly income of $85,000 or less (individual) and $170,000 or less (married, filing federal taxes jointly).

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A

The Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA) is a health care program in which the VA shares the cost of covered health care services with eligible beneficiaries. To be eligible for CHAMPVA, you cannot be eligible for TRICARE, the health care program for active duty and retired military personnel, their families and survivors, and you must be: • The spouse or child of a veteran who has been rated permanently and totally disabled for a service-connected disability; • The surviving spouse or child of a veteran who died from a VArated service-connected disability;

• The surviving spouse or child of a veteran who was, at the time of death, rated permanently and totally disabled from a serviceconnected disability; or • The surviving spouse or child of a military member who died in the line of duty, not due to misconduct.

For more information, call 800733-8387 or go to www.benefits. gov/benefits/benefit-details/318.

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,

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Cover Story

The Federal Government’s Personnel Engine

PM

Last summer’s cybersecurity breaches threw a major wrench in OPM’s gears The hard job of the Office of Personnel Management (OPM) became a great deal harder in the past few months.

The devastating news that the records of 22.1 million federal employees, contractors, applicants and family members were compromised through OPM data breaches of personnel and security clearance information and the subsequent departure under fire of former OPM Director Katherine Archuleta compound external and internal challenges for this agency of 5,500 employees.

And that matters for federal employees and retirees, as OPM is likely the federal agency whose mission and actions have the greatest impact on them, besides their home agencies. Tasked with

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By David Tobenkin

Illustration by Bill Pragluski, Critical Stages, LLC

PM

The Federal Government’s Personnel Engine

keeping the federal government’s personnel machinery humming, OPM manages background checks and safeguards much federal employee data; processes standard and disability retirement claims; administers the federal health and life insurance programs; sets human resources (HR) guidelines that safeguard merit system principles and ensure consistency among federal agencies; oversees federal hiring policy; and leads efforts to make the federal government a rewarding place to work. These are the daunting challenges that face the next OPM director, and, in the meantime, OPM’s Acting Director Beth Cobert.

THE SECURITY BREACH

At the top of the agency’s to-do list is dealing with the data breaches and their aftermath, which likely will crowd out OPM’s ability to forcefully engage many other issues until they have been adequately addressed.

The data breach announced on July 9 affected 21.5 million individuals and compromised extremely sensitive background check information, including 5.6 million fingerprints. That breach followed another, separate OPM breach announced on June 4, in which 4.2 million current and former federal workers’ and contractors’ personnel files were compromised.

It is clear that there were long-standing and serious shortcomings in cybersecurity processes at the agency. An audit by OPM’s Office of the Inspector General released in November 2014 cited numerous deficiencies in the agency’s IT security practices: “OPM has a history of troubled system development projects. In our opinion, the root causes of these issues have been related to the lack of centralized oversight of systems development. . . . [P]rogram office managers do not always have the appropriate background in project management or information technology systems development.”

Adding to these problems was the lack of data encryption. “The chances of a network breach for any organization are high, but once data is stolen – if data is encrypted correctly – you shouldn’t have a loss because they cannot exploit the data,” says TK Keanini, chief technology officer of Lancope, Inc.®, a leading provider of net28

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work visibility and security intelligence, based in Alpharetta, GA. OPM officials contended in testimony before a congressional committee that some legacy systems were incapable of being encrypted. OPM Chief Information Officer Donna Seymour also noted in a written statement to narfe magazine that when, as happened in the OPM breaches, an adversary compromises privileged-user accounts, such as those held by system and database administrators who have the rights to decrypt databases, the adversary gains the rights to do whatever that privileged user can do, including decrypting databases.

Beyond the breaches themselves, OPM has been criticized for its responses to them. For victims of the June 4 personnel records breach, OPM has offered 18 months of complimentary credit monitoring. OPM’s Seymour states that notifications were completed to the 4.2 million individuals affected by that breach on June 19.

However, many employees complained that the contractor handling efforts to address that records breach, CSID, failed to promptly inform many employees as to whether their information had been compromised and how to sign up for the credit monitoring.

Even one top-tier, retired OPM executive expressed frustration with the CSID service. “I signed up on the CSID website, and it asked for my bank routing numbers, which is sensitive and personal information that I was reluctant to give to a nongovernmental third party,” says Dan Blair, a former acting director of OPM and now president of the National Academy of Public Administration. “Enrolling in this service also came with other features that didn’t seem to me to relate to the breach.”

For those affected by the July 9 background investigation breach, contractor ID Experts will provide three years of identity theft restoration, identity theft insurance and credit monitoring to those affected by the breach, effective immediately. Notices to individuals affected by the background investigation data breach were scheduled to begin going out by the end of September.

NARFE and others have called on OPM and Congress to offer lifetime protection to those affected by both breaches.

Some say transparency and outreach have improved under OPM Acting Director Cobert, while reserving final judgment until the dust settles on exactly how and how well the data breaches are addressed. “Transparency has improved, their website is up now, and there is a single clearinghouse where those affected can go, get consistent information and obtain protection,” says William R. Dougan, president of the National Federation of Federal Employees, an employee union.

Cobert comes to OPM with impressive credentials, including experience investigating cyberattacks as a deputy director at the Office of Management and Budget and, earlier, a long career as a director and senior partner at blue chip management consulting firm McKinsey & Co. That is particularly significant given that is the type of high-priced, private-sector management talent that might be called in to address a system crisis such as the data breaches. And, if she remains through the end of the current administration, it also may be fortuitous. With little more than a year remaining in the Obama administration, any attempt to have a permanent, full-time replacement confirmed by the Senate in the current politicized environment could be arduous and lengthy.

There remains the large task of improving OPM’s cybersecurity performance going forward.

In June, OPM released a Cybersecurity Action Report, announcing steps to improve IT security.

Among efforts underway at OPM are increasing use of two-factor identification, reducing the number of privileged users on the agency’s networks and a tripling of investment in information technology.

OPM’S CORE FOCUS UNCHANGED

OPM was legislatively created in 1978 from the remnants of the former Civil Service Commission.

Among its chartered duties are crafting regulations and policies to implement the merit system and to oversee agencies’ hiring practices.

While some have called for abolition of the agency over the years, in part because of concerns its key activities could be more effectively performed by larger agencies, others say it is still needed. John Palguta, a vice president at the

One area of relative OPM strength is its administration of insurance and other benefit programs.

Partnership for Public Service, a federal government HR policy think tank, says that many critics ignore or are unaware of the key core duties that OPM performs. “If it didn’t exist, we would have to create it because the president needs one place to go for information about how the federal civil service is working and one body to write regulations to implement employment legislation passed by Congress for the workforce,” says Palguta, a former Merit Systems Protection Board Senior Executive Service member and earlier an OPM and Civil Service Commission manager and employee. “Basically, OPM speaks for the administration in reacting to laws affecting the workforce.”

Another mission, he notes, is for OPM to act as the administration’s enforcement arm to ensure agencies are following congressional laws and implementing HR rules and regulations.

Benefits Administration

One area of relative OPM strength is its administration of health and life insurance and other benefits programs. The Federal Employees Health Benefits Program, Federal Employees’ Group Life Insurance Program, and the plethora of competitive benefits options for federal employees are still held up as models for the private sector, and the suite of programs is generally viewed as welladministered.

On the other hand, processing retirement claims is an area that continues to challenge the agency. OPM had enjoyed success in whittling down the retirement claims backlog in 2014, with the inventory of claims falling from 23,554 in w w w. n a r f e . o r g

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The Federal Government’s Personnel Engine

February 2014 to 14,551 in May 2014 to 11,669 in December 2014. But actual claims inventory has steadily exceeded projected inventory throughout 2015. And a decline occurred in the percentage of retirement claims processed from April through August, compared to the preceding six-month period and measuring those months against those of the prior year. Significant spikes in claims received in certain months of 2015 contributed to the increase in inventory, which, as of August, stood at 16,350 (see claims status, p. 60). On the plus side, the average processing time for those customers whose cases take longer than 60 days has fallen over the past 12 months, explains OPM Associate Director of Retirement Services Kenneth J. Zawodny, Jr., who says that OPM continues to work to reduce processing times for the toughest cases.

Some say the technological challenges of the agency are reflected here, too, as OPM has largely addressed the retirement claims backlog by throwing more bodies and hours at the problem after abandoning unsuccessful attempts in previous years to automate the process. “Doing this with people is a short-term solution,” says Ronald Sanders, a vice president of Booz Allen Hamilton, the management and technology consulting firm, and a former OPM associate director for human resources policy. “At some time, we need to revisit automation of the claims process.” Still, some, like Jeffrey Neal, a senior vice president at ICF International and a former Department of Homeland Security chief human capital officer, note that many retirement histories and documents are simply difficult to digitize, reconcile and process.

Ancillary DUTIES

Unlike HR policy evaluation, benefits management and retirement claims processing, other OPM duties are further afield, absorb a large portion of OPM time and personnel, and – in the minds of some federal HR policy wonks – are poor fits for the agency’s mission and resources.

Few federal employees know, for example, that more than half of OPM’s budget ($1.13 billion of $2 billion) and roughly half of its employees 30

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(2,726) are related to background investigations, which are not part of its statutory duties, notes Neal. “That is the tail wagging the dog and a side business overwhelming the real mission of the agency,” he says. “It also creates a target for hackers and likely does not save the government money.”

Another OPM activity that Neal argues should be largely phased out is development of HR computer software produced and sold by OPM, such as its USA Staffing hiring software solution for federal agencies, which, he contends, is unnecessary given commercially available alternatives.

However, OPM Associate Director of Human Resources Solutions Joseph Kennedy argues that USA Staffing “performs a vital role in enabling agencies to transfer, promote and/or hire the right person for the right job within the framework of merit system principles. Therefore, it is critical that the federal government has enabling technology to administer a transparent, fair and effective promotion and hiring program to ensure continuity of operations.”

Civil Service and other REFORMs

With respect to OPM’s role in federal HR policy administration, many say the agency should give a higher priority to reforming the outdated civil service system. The Partnership for Public Service’s Palguta points out the many failings of the system, including job classifications that no longer correspond to current positions, an outdated compensation structure with little relationship to the pay for comparable private-sector positions or employee performance, and a Senior Executive Service that is not utilized or rewarded as originally intended. In 2014, the Partnership laid out a road map for addressing those issues in a report, “Building the Enterprise: A New Civil Service Framework.”

The report calls upon OPM, in close consultation with some other bodies, to define and, as necessary, refine the details of a smaller number of pay levels, rather than maintain the current GS 5 through GS 15 system that it says bears little relationship to the functional and compensation aspects of work federal employees actually perform. The report goes on to recommend that

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The Federal Government’s Personnel Engine

occupation-based classification standards be instituted to keep pace with the changing nature of government work. However, OPM Deputy Associate Director of Pay and Leave Brenda Roberts points out that any reduction in the current work or grade levels under the General Schedule would require a legislative change.

The report also recommends that OPM expedite its hiring process of federal workers, an area it describes as “so slow, complex, opaque and imprecise in its ability to identify the best candidates that it is more likely to impede than facilitate the government’s ability to hire well.”

It says that OPM has powers that it could uni-

OPM may have a role in performance management by developing better ways to evaluate employees. laterally exercise to address this situation. The Partnership and other federal HR experts note that OPM has taken some steps to simplify the job application process, such as eliminating lengthy essays; implementing recruiting initiatives for college-educated young people and recent graduates, similar to its Pathways program; and by successfully implementing an Obama administration goal of hiring more military veterans.

OPM also may have a role in performance management by developing better ways to evaluate employees. Neal and Robert Goldenkoff, director of strategic issues at the Government Accountability Office (GAO), say that OPM could require agencies to follow a private-sector trend of de-emphasizing annual employee evaluations and providing more frequent, timely and specific evaluations that provide earlier and more effective guidance to employees.

Another worthy initiative would be OPM guidance on more careful selection of, and training 32

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for, managers, says Dougan of the National Federation of Federal Employees, given what he says is a tendency at many agencies to promote employees with little managerial experience, aptitude or desire to be managers but who take such positions because it is the only way to advance. In response, OPM Lead Human Resource Specialist Gregory McHugh says, “OPM provides a wealth of support to agencies and practitioners to ensure that supervisors and managers are effective in their roles,” including policy guidance, resources and best-practices research, along with training and development.

Some also maintain that OPM has become less assertive in advising other agencies on how to effectively use their existing HR and hiring authorities. Restoring that role, says Booz Allen Hamilton’s Sanders, could yield large HR dividends governmentwide.

Sanders says that a number of OPM to-do list items – HR leadership for agencies, the cybersecurity issue and hiring policy – come together in the urgent need for the federal government to augment the hiring of more top-tier cybersecurity and technology talent.

One area of reform that actually may occur in the near future and likely will involve a strong OPM role is revamping the Senior Executive Service (SES), with an administration plan to reform the system already released. “That should be on the flip chart as one of the few but high-impact things that they can get done in the remaining months of this administration,” says the National Academy of Public Administration’s Blair, who is writing a book on SES reform with Sanders.

Similarly, some say that OPM also needs to better integrate the various cogs in the federal HR machine. “For example, even if you solved the hiring issues in critical areas the government faces, unless you address onboarding issues that help integrate them into the workforce and provide opportunities to advance, people will still leave,” says the GAO’s Goldenkoff. “That is why it is important for OPM to think holistically and have a good governmentwide strategic HR plan.”

—David Tobenkin is a freelance writer based in the greater Washington, DC, area.

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Spotlight on

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By Everett A. Chasen

While the number of federal employees covered by CSRS continues to decline, the number of CSRS retirees remains high.

For more than 60 years, federal employees were required to take part in the Civil Service Retirement System (CSRS). CSRS was developed in 1920 to provide retirement, disability and survivor benefits for federal civilian employees.

The system is a defined-benefit plan − a pension plan in which employees’ annuity payments are calculated according to the length of time the employee served the federal government, and the average of the highest three years of salary the employee earned during that time.

In 1983, the government changed its retirement system to the Federal Employees Retirement System (FERS). While CSRS provides employees with a defined-benefit amount every month, FERS provides a smaller defined benefit; matching contributions to the government’s Thrift Savings Plan; and Social Security coverage, which is limited for those under the CSRS system.

While all federal employees hired after 1983 are required to be covered under FERS, those who previously had been covered under CSRS were given the option of choosing the new system or keeping what they had. Nearly all chose to remain with CSRS. More than 30 years after the last new employee was enrolled in CSRS, CSRS-covered personnel now make up a small and diminishing portion of the federal workforce.

According to the Office of Personnel Management (OPM), as of the close of fiscal year (FY) 2014 in September 2014, 184,000 active federal employ-

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Spotlight on

ees were covered by CSRS, less than 7 percent of the government’s 2.6 million employees. During FY 2014, a total of 39,364 employees covered by CSRS retired, or 37.5 percent of the total number of employees who retired in that year.

All told, nearly 1.5 million living CSRS retirees currently receive annuities from the government, making up 72 percent of all annuitant retirees. Of the survivors of federal employees receiving annuities, just over half a million are survivors of CSRS employees − more than 90 percent of the total.

HEALTH OF THE CSRDF

All CSRS-covered employees contribute 7, 7.5 or 8 percent of their pay toward their annuity, instead of paying Social Security retirement or Old Age, Survivors and Disability Insurance (OASDI); and the contributions they make are matched by their government employers.

The funds are held and disbursed by the Civil Service Retirement and Disability Fund (CSRDF), and the diminishing amount of CSRS contributions to the fund, together with the increasing life spans of retirees, have caused some to fear the fund may run out of money at some time in the future.

Those fears are groundless, says Kenneth J. Zawodny, Jr., OPM’s associate director of retirement services. CSRDF receives contributions not only from CSRS employees, but also from those covered by FERS and those in the hybrid CSRS Offset category, a retirement system established by the same legislation that established FERS. CSRS Offset was an interim category for employees hired between January 1, 1984, and January 1, 1987, between the time CSRS ended and FERS was fully enacted. Federal employees who initially worked under CSRS, but who had a break in service of more than a year, also may be covered under CSRS Offset.

A 2014 OPM report projected actual funding for 75 years, under conditions of expected future inflation, and assumed that the total federal employee population would remain constant. While the projection found that CSRS contributions to the fund would be depleted in 2022 (except for those of postal employees, whose contributions are funded differently), the contributions of FERS employees and their agencies should keep the fund healthy for the entire 75-year period.

At the close of fiscal year 2013, the CSRDF held a balance of $835.7 billion, while obligations from 36

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7 percent of all employees, 72 percent of all annuitant retirees are under CSRS. the fund totaled $77.5 billion, consisting mostly of annuity payments to retirees and their survivors.

All of the fund’s assets are held in special-issue U.S. Treasury Bonds, or other bonds backed by the full faith and credit of the U.S. government.

“The CSRDF asset balance is projected to grow continuously over the course of the projection period and remain sufficient to pay projected benefits and expenses for CSRS and FERS under existing statutory funding provisions,” explains Zawodny.

STATUS OF GPO AND WEP

Those covered under CSRS are significantly affected by two provisions of federal law, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which reduce Social Security benefits for state, federal and local retirees who also are receiving a public pension.

The WEP changes the formula used to figure benefit amounts by reducing the benefits of those receiving government pensions who also have credits they earned while working in a job covered

by Social Security. The GPO reduces an individual’s Social Security survivor benefits, available to those whose deceased spouses had earned Social Security benefits, by an amount equal to twothirds of their public pension.

The Social Security Administration estimates that the WEP affects 1.6 million and the GPO 615,000 of the more than 56 million Social Security beneficiaries. NARFE has called this an “unfair law” that should be changed.

NARFE argues that in the private sector, pensions from employers, no matter how large, do not cause Social Security benefits to be reduced. It also points out that CSRS employees historically have paid a higher contribution rate than private-sector employees into Social Security and that 97 percent of employer-provided pension plans do not require employee contributions, unlike CSRS. These higher contributions, NARFE believes, should translate into more retirement income for federal employees.

NARFE supports legislation to change current law so that federal retirees receive the Social Secu-

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Spotlight on

rity benefits they have earned. However, according to Ben Stump, a spokesperson for the Social Security Administration, the agency “has not recently put forward any legislative proposals for WEP or GPO policy changes.”

In Congress, however, the story is different.

On June 23, Sen. Sherrod Brown, D-OH, introduced the Social Security Fairness Act (S. 1651) to repeal both the WEP and the GPO. Rep. Rodney Davis, R-IL, introduced the same bill in the House of Representatives (H.R. 973). In addition, Reps.

Kevin Brady, R-TX, and Richard E. Neal, D-MA, introduced the Equal Treatment for Public Servants Act (H.R. 711), which repeals the WEP and replaces it with a new formula that would calculate benefits for public employees just as it does for all other workers.

WEP/GPO repeal and reform legislation has been introduced in past Congresses, but its price tag ($81 billion over 10 years for repeal of both provisions) makes it unlikely it will be enacted in this time of budget austerity, NARFE believes.

Nonetheless, NARFE is urging its members to ask their representative and senators to cosponsor the bills, in the hope of at least getting hearings on them. In 1994, NARFE founded the Coalition to Afford Retirement Equity (CARE) and continues to maintain that any debate on reform of the Social Security Act must include correction of the inequities imposed on Social Security beneficiaries by the WEP and the GPO.

OTHER ISSUES FOR CSRS RETIREES

NARFE also is closely monitoring a bill in the House to calculate the pensions of current civilian federal employees from their best-earning three years to the best-earning five years of service.

The Congressional Budget Office has estimated the formula change would save the government $3.1 billion over 10 years.

While proposals of this kind have been considered since the 1970s, the fact that this is a stand-alone bill − not part of a package of reforms − means that it may have a greater chance to be considered this year, NARFE believes.

Another piece of legislation, more favorable to employees and retirees, which was passed by the Senate in August, is the Representative Payee Fraud Prevention Act of 2015. The bill, S. 1576, cosponsored by Sens. James Lankford, R-OK, and 38

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Heidi Heitkamp, D-ND, would give U.S. attorneys the statutory authority to prosecute retiree representatives who misuse funds from CSRS or from FERS. Retiree representatives are people or organizations who manage benefits for recipients who are unable to do so for themselves. Veterans and Social Security recipients already have such protections. The bill now is awaiting action in the House.

WHAT THOSE STILL WORKING SHOULD KNOW

OPM’s Zawodny provided encouraging news about the rate at which OPM is processing applications for retirement claims. “Our backlog (of processing claims) will never be zero,” he explains. “We take work in every day, and we put work out every day.

Because it takes more than just a flip of a switch to get the work done, some work is going to sit there until either we can complete it or we’re waiting for a response from the annuitant.”

“For us,” he continues, “a backlog is cases we can’t reasonably work in a 60-day time period, which is the goal we’ve set for processing retirement applications. Those cases that we’re waiting for additional information from are not considered part of the backlog.” narfe magazine has begun reporting, on a monthly basis, OPM’s record of retirement claims processing (see p. 60).

In August, 69.9 percent of retirement applications were completed in fewer than 60 days. Most of the cases that did not meet the timeliness goal were missing information and, therefore, could not be processed within the time frame.

Finally, Zawodny offers advice to CSRS employees who are considering retirement. “You worked a long part of your life, and now it’s time for us to work for you. But we can only work for you up to a certain extent. You have to make sure that your records are correct. All we know is what is given to us. Nobody knows your career better than you. You should properly prepare for retirement by reviewing your records to ensure all your service records and pay information is correct.

It will help speed up your retirement processing.”

OPM’s website, www.opm.gov/retire, offers additional information for those considering retirement.

—Everett A. (Ev) Chasen is a writer and a communications consultant in the washington, DC, area. He retired from the federal government in 2009 after 35 years of service.

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Open Season Report

o

pen season Report

FEHBP PREmiums

T

he Office of Personnel Management (OPM) announced on September 29 the 2016 premium rates for the Federal Employees Health Benefits Program (FEHBP), including the rates for the new, much-anticipated Self Plus One enrollment.

OPM said the overall average total FEHBP premium increase for non-postal employees and all annuitants will be 6.4 percent in 2016. (Postal employees pay a different rate because of collective bargaining agreements.)

Premiums for health maintenance organizations (HMOs) will increase an average of 5.4 percent, while fee-for-service (FFS) plans will see an average increase of 6.6 percent.

Enrollee Premiums. The average increase in the government share of premiums for 2016 will be 6.0 percent; the average enrollee share increase will be 7.4 percent.

Changes in enrollee premiums vary from plan to plan, but, on average, enrollees with Self Only coverage will pay $5.50 more per biweekly pay period; enrollees with Self and Family coverage will

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pay $19.61 more. (Employees pay premiums on a biweekly basis; retirees pay premiums on a monthly basis.)

Enrollees opting to change to the new Self Plus One option will pay $8.92 more per pay period, on average, than they previously paid for Self and Family coverage.

Enrollees with Self Only coverage in the popular Blue Cross and Blue Shield (BCBS) Standard option will pay $9.15 more per bi-

weekly pay period in 2016; those with Self and Family coverage will pay $24.93 more each pay period.

Enrollees with BCBS Standard coverage who opt for Self Plus One will pay $18 more per pay period than they paid for Self and Family coverage in 2015.

The tables on pages 41 and 42 list the six open-to-all, FFS plans, the four restricted FFS plans and (Continued on p. 44)

Increases reduce employee pay, highlight need for new cost-of-living measurement

NARFE President Richard G. Thissen said that the average 7.4 percent increase in Federal Employees Health Benefits Program (FEHBP) premiums for enrollees “will take a bite out of the already reduced paychecks of federal employees across the country,” and “it could even mean reduced take-home pay for some federal employees, who are slated to receive a 1.3 percent pay raise next year.”

Federal retirees “are facing an even worse situation,” Thissen continued, because it is unlikely they will receive a cost-of-living adjustment (COLA) to their annuities next year. “Additionally, many federal retirees are facing a more than 50 percent increase in their Medicare premiums, further diminishing their ability to make ends meet. In a year in which health insurance costs are increasing substantially, we can clearly see a need for a new formula to calculate COLAs, one that accurately reflects the health care costs of our nation’s seniors.”

FEHBP premiums increased 3.2 percent in 2015, 3.7 percent in 2014, 3.4 percent in 2013, 3.8 percent in 2012 and 7.3 percent in 2011.

KEY: Employees pay biweekly Annuitants pay monthly

2016 premiums — Fee for Service

Enrollee Increase / Plan Option Code Total Premium Gov’t Pays Enrollee Pays Decrease

biweekly | monthly biweekly | monthly biweekly | monthly biweekly | monthly APWU Health Plan High Self High Self & Family High Self Plus One CDHP Self CDHP Self & Family CDHP Self Plus One

OPEN TO ALL 471 472 473 474 475 476

$293.37 | $635.64 $704.10 | $1,525.55 $616.09 | $1,334.86 $207.76 | $450.15 $498.62 | $1,080.34 $457.07 | $990.32

$213.37 | $462.30 $488.50 | $1,058.42 $461.02 | $998.88 $155.82 | $337.61 $373.97 | $810.26 $342.80 | $742.74

$80.00 | $173.34 $215.60 | $467.13 $155.07 | $335.98 $51.94 | $112.54 $124.65 | $270.08 $114.27 | $247.58

$15.33 | $33.22 $69.37 | $150.30 | $5.63 | $12.20 $20.47 | $44.35 |

Blue Cross and Blue Shield service benefit plan Standard Self 104 $313.55 | $679.36 Standard Self & Family 105 $726.74 | $1,574.60 Standard Self Plus One 106 $692.33 | $1,500.05 Basic Self 111 $273.94 | $593.54 Basic Self & Family 112 $652.70 | $1,414.18 Basic Self Plus One 113 $621.77 | $1,347.17

$213.37 | $462.30 $488.50 | $1,058.42 $461.02 | $998.88 $205.46 | $445.16 $488.50 | $1,058.42 $461.02 | $998.88

$100.18 | $217.06 $238.24 | $516.18 $231.31 | $501.17 $68.48 | $148.38 $164.20 | $355.76 $160.75 | $348.29

$9.15 | $19.83 $24.93 | $54.01 | $5.08 | $11.00 $15.74 | $34.09 |

GEHA Benefit Plan High Self High Self & Family High Self Plus One Standard Self Standard Self & Family Standard Self Plus One HDHP Self HDHP Self & Family HDHP Self Plus One

311 312 313 314 315 316 341 342 343

$313.72 | $679.73 $745.43 | $1,615.10 $690.18 | $1,495.39 $207.16 | $448.85 $489.91 | $1,061.47 $445.39 | $965.01 $216.01 | $468.02 $510.85 | $1,106.84 $464.42 | $1,006.24

$213.37 | $462.30 $488.50 | $1,058.42 $461.02 | $998.88 $155.37 | $336.64 $367.43 | $796.10 $334.04 | $723.76 $162.01 | $351.02 $383.14 | $830.13 $348.32 | $754.68

$100.35 | $217.43 $256.93 | $556.68 $229.16 | $496.51 $51.79 | $112.21 $122.48 | $265.37 $111.35 | $241.25 $54.00 | $117.00 $127.71 | $276.71 $116.10 | $251.56

$6.10 | $13.22 $31.70 | $68.68 | $2.75 | $5.95 $10.95 | $23.72 | $3.13 | $6.79 $11.53 | $24.99 |

MHBP Value Self Value Self & Family Value Self Plus One Standard Self Standard Self & Family Standard Self Plus One HDHP Self HDHP Self & Family HDHP Self Plus One

414 415 416 454 455 456 481 482 483

$236.60 | $512.63 $571.80 | $1,238.90 $560.59 | $1,214.61 $279.93 | $606.52 $650.55 | $1,409.53 $637.79 | $1,381.88 $259.47 | $562.19 $602.92 | $1,306.33 $574.22 | $1,244.14

$177.45 | $384.47 $428.85 | $929.18 $420.44 | $910.96 $209.95 | $454.89 $487.91 | $1,057.15 $461.02 | $998.88 $194.60 | $421.64 $452.19 | $979.75 $430.67 | $933.11

$59.15 | $128.16 $142.95 | $309.72 $140.15 | $303.65 $69.98 | $151.63 $162.64 | $352.38 $176.77 | $383.00 $64.87 | $140.55 $150.73 | $326.58 $143.55 | $311.03

$2.29 | $4.96 $7.39 | $16.01 | $-22.67 | $-49.11 $-63.15 | $-136.83 | $0.65 | $1.40 $5.21 | $11.28 |

NALC High Self High Self & Family High Self Plus One CDHP Self CDHP Self & Family CDHP Self Plus One Value Self Value Self & Family Value Self Plus One

321 322 323 324 325 326 KM1 KM2 KM3

$285.92 | $619.49 $634.74 | $1,375.27 $623.30 | $1,350.48 $200.24 | $433.85 $434.80 | $942.07 $434.79 | $942.05 $172.40 | $373.53 $374.39 | $811.18 $374.38 | $811.16

$213.37 | $462.30 $476.06 | $1,031.45 $461.02 | $998.88 $150.18 | $325.39 $326.10 | $706.55 $326.09 | $706.54 $129.30 | $280.15 $280.79 | $608.39 $280.79 | $608.37

$72.55 | $157.19 $158.68 | $343.82 $162.28 | $351.60 $50.06 | $108.46 $108.70 | $235.52 $108.70 | $235.51 $43.10 | $93.38 $93.60 | $202.79 $93.59 | $202.79

$-4.39 | $-9.51 $2.98 | $6.47 | $0.00 | $0.00 $0.00 | $0.01 | $0.00 | $0.00 $0.01 | $0.00 |

SAMBA High Self High Self & Family High Self Plus One Standard Self Standard Self & Family Standard Self Plus One

441 442 443 444 445 446

$347.16 | $752.18 $833.19 | $1,805.25 $763.76 | $1,654.81 $253.76 | $549.81 $583.65 | $1,264.58 $558.27 | $1,209.59

$213.37 | $462.30 $488.50 | $1,058.42 $461.02 | $998.88 $190.32 | $412.36 $437.74 | $948.44 $418.70 | $907.19

$133.79 | $289.88 $344.69 | $746.83 $302.74 | $655.93 $63.44 | $137.45 $145.91 | $316.14 $139.57 | $302.40

$-4.09 | $-8.86 $-7.20 | $-15.60 | $2.65 | $5.74 $7.07 | $15.33 |

RESTRICTED

Compass Rose Health Plan (members of the Intelligence Community, employees of Departments of Defense and State) High Self 421 $291.49 | $631.56 $213.37 | $462.30 $78.12 | $169.26 $0.64 | $1.39 High Self & Family 422 $699.57 | $1,515.74 $488.50 | $1,058.42 $211.07 | $457.32 $17.13 | $37.11 High Self Plus One 423 $641.27 | $1,389.42 $461.02 | $998.88 $180.25 | $390.54 | Foreign Service Benefit Plan (American Foreign Service personnel, Departments of State and Defense, USAID, Foreign Agricultural and Commercial services, other executive branch employees assigned overseas; Foreign Service retirees) High Self 401 $252.70 | $547.52 $189.53 | $410.64 $63.17 | $136.88 $3.00 | $6.52 High Self & Family 402 $625.16 | $1,354.51 $468.87 | $1,015.88 $156.29 | $338.63 $8.04 | $17.42 High Self Plus One 403 $618.98 | $1,341.12 $461.02 | $998.88 $157.96 | $342.24 | Rural Carrier Benefit Plan (active and retired rural letter carriers) High Self 381 $298.34 | $646.40 $213.37 | $462.30 High Self & Family 382 $577.71 | $1,251.71 $433.28 | $938.78 High Self Plus One 383 $566.37 | $1,227.14 $424.78 | $920.36

$84.97 | $184.10 $144.43 | $312.93 $141.59 | $306.78

$-5.51 | $-11.94 $5.00 | $10.83 |

Panama Canal Area Benefit Plan High Self 431 $238.66 | $517.10 High Self & Family 432 $498.18 | $1,079.39 High Self Plus One 433 $476.34 | $1,032.07

$59.66 | $129.27 $124.54 | $269.85 $119.08 | $258.02

$3.98 | $8.63 $8.32 | $18.04 |

$179.00 | $387.83 $373.64 | $809.54 $357.26 | $774.05

Open Season Report

KEY: Employees pay biweekly Annuitants pay monthly

2016 premiums — largest hmos*

Enrollee Increase / Total Premium Gov’t Pays Enrollee Pays Decrease State(s) Plan Option Code biweekly | monthly biweekly | monthly biweekly | monthly biweekly | monthly

CA

Kaiser Foundation Health Plan of n. california High Self 591 $377.23 | $817.33 $213.37 | $462.30 $163.86 | $355.03 High Self & Family 592 $900.50 | $1,951.08 $488.50 | $1,058.42 $412.00 | $892.66 High Self Plus One 593 $900.50 | $1,951.08 $461.02 | $998.88 $439.48 | $952.20 Standard Self 594 $315.31 | $683.17 $213.37 | $462.30 $101.94 | $220.87 Standard Self & Family 595 $737.83 | $1,598.63 $488.50 | $1,058.42 $249.33 | $540.21 Stadard Self Plus One 596 $737.83 | $1,598.63 $461.02 | $998.88 $276.81 | $599.75

$6.06 | $13.13 $1.68 | $3.63 | $2.17 | $4.70 $-8.26 | $-17.90 |

$68.97 | $149.43 $159.40 | $345.37 $176.59 | $382.61 $44.73 | $96.91 $103.37 | $223.98 $103.37 | $223.98

$2.38 | $5.14 $-7.68 | $-16.64 | $1.53 | $3.31 $3.52 | $7.64 |

CA Kaiser Foundation Health Plan of S. California

High Self 621 $275.88 | $597.74 $206.91 | $448.31

High Self & Family 622 $637.61 | $1,381.49 $478.21 | $1,036.12

High Self Plus One 623 $637.61 | $1,381.49 $461.02 | $998.88

Standard Self 624 $178.91 | $387.64 $134.18 | $290.73

Standard Self & Family 625 $413.50 | $895.92 $310.13 | $671.94

Standard Self Plus One 626 $413.50 | $895.92 $310.13 | $671.94

CA

United Healthcare of California High Self CY1 $286.34 | $620.40 High Self & Family CY2 $802.88 | $1,739.57 High Self Plus One CY3 $559.21 | $1,211.62 Standard Self CY4 $257.47 | $557.85 Standard Self & Family CY5 $721.97 | $1,564.27 Standard Self Plus One CY6 $502.85 | $1,089.51

DC, MD, VA Aetna Open Access High Self JN1 High Self & Family JN2

High Self Plus One JN3

Basic Self JN4

Basic Self & Family JN5

Basic Self Plus One JN6

$442.85 | $959.51 $995.60 | $2,157.13 $985.75 | $2,135.79 $275.96 | $597.91 $621.16 | $1,345.85 $608.98 | $1,319.46

$213.37 | $462.30 $72.97 | $158.10 $-22.27 | $-48.25 $488.50 | $1,058.42 $314.38 | $681.15 $83.72 | $181.38 $419.41 | $908.72 $139.80 | $302.90 | $193.10 | $418.39 $64.37 | $139.46 $1.51 | $3.26 $488.50 | $1,058.42 $233.47 | $505.85 $89.43 | $193.77 $377.14 | $817.13 $125.71 | $272.38 | $213.37 | $462.30 $229.48 | $497.21 $4.71 | $10.21 $488.50 | $1,058.42 $507.10 | $1,098.71 $-0.30 | $-0.66 $461.02 | $998.88 $524.73 | $1,136.91 | $206.97 | $448.43 $68.99 | $149.48 $2.52 | $5.46 $465.87 | $1,009.39 $155.29 | $336.46 $6.66 | $14.43 $456.74 | $989.60 $152.24 | $329.86 |

DC, MD, VA Kaiser Foundation Health Plan Mid-Atlantic States High Self E31 $285.48 | $618.54 $213.37 | $462.30 High Self & Family E32 $668.01 | $1,447.36 $488.50 | $1,058.42 High Self Plus One E33 $645.17 | $1,397.87 $461.02 | $998.88 Standard Self E34 $214.96 | $465.75 $161.22 | $349.31 Standard Self & Family E35 $503.01 | $1,089.86 $377.26 | $817.40

Standard Self Plus One E36 $485.80 | $1,052.57 $364.35 | $789.43

$72.11 | $156.24 $179.51 | $388.94 $184.15 | $398.99 $53.74 | $116.44 $125.75 | $272.46 $121.45 | $263.14

DC, MD, VA M.D.-IPA

High Self

High Self & Family

High Self Plus One

JP1 JP2 JP3

$295.87 | $641.05 $829.62 | $1,797.51 $577.83 | $1,251.97

$213.37 | $462.30 $488.50 | $1,058.42 $433.37 | $938.98

$82.50 | $178.75 $-30.04 | $-65.09 $341.12 | $739.09 $64.39 | $139.51 $144.46 | $312.99 |

$194.54 | $421.51 $437.33 | $947.54 $426.24 | $923.52

$64.85 | $140.50 $145.77 | $315.84 $142.08 | $307.84

HI

HMSA High Self High Self & Family High Self Plus One

871 872 873

$259.39 | $562.01 $583.10 | $1,263.38 $568.32 | $1,231.36

NJ-NY

GHI Health Plan High Self 801 High Self & Family 802 High Self Plus One 803 Standard Self 804 Standard Self & Family 805 Standard Self Plus One 806

$393.81 | $853.26 $1,163.42 | $2,520.74 $754.55 | $1,634.86 $303.85 | $658.34 $822.81 | $1,782.76 $499.88 | $1,083.07

$-5.82 | $-12.61 $-15.79 | $-34.21 | $8.36 | $18.11 $21.38 | $46.32 |

$7.35 | $15.92 $17.78 | $38.53 |

$213.37 | $462.30 $180.44 | $390.96 $23.20 | $50.27 $488.50 | $1,058.42 $674.92 | $1,462.32 $225.28 | $488.10 $461.02 | $998.88 $293.53 | $635.98 | $213.37 | $462.30 $90.48 | $196.04 $22.40 | $48.53 $488.50 | $1,058.42 $334.31 | $724.34 $169.57 | $367.40 $374.91 | $812.30 $124.97 | $270.77 |

*Based on information provided by the Office of Personnel Management. If your plan is not listed, it simply means that your plan is not one of the largest.

Open Season changes for employees are effective at the beginning of the first pay period after January 1, 2016. Changes for retirees and survivor annuitants are effective January 1, 2016, and premium changes will

42

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be reflected in February 1, 2016, annuity payments. If verified enrollment is required, the change notice from OPM should suffice for annuitants, the notification from their agency will suffice for employees.

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

A whole new level of value for federal retirees The Aetna Direct plan SM

Aetna Direct is unlike any other federal health insurance plan you’ve seen. With Aetna Direct, you get unmatched value for your money — lower plan premiums, lower out-of-pocket costs and more.

Don’t miss out this Open Season If you’re a federal retiree with Medicare parts A and B, check us out. There’s not been a federal plan quite like Aetna Direct.

Aetna Direct gives you a whole new level of value with: •

Monthly premiums that are below the federal average

•

A fund you can use to help pay prescription costs or Medicare Part B premiums ($750/self only, $1,500/ self plus one or self and family)

•

Waived deductibles and copayments for medical services — if Medicare Part A and Part B are primary and your provider accepts Medicare assignment.

Learn more Visit aetnafeds.com/aetnadirect Or call 1-855-277-4356

Health insurance plans are offered and/or underwritten by Aetna Life Insurance Company (Aetna). This is a brief description of the features of this Aetna health insurance plan.

Before making a decision, please read the plan’s applicable federal brochure(s). All benefits are subject to the definitions, limitations and exclusions set forth in the federal brochure. Plan features and availability may vary by location and are subject to change. Aetna does not provide care or guarantee access to health services. For more information about Aetna plans, refer to www.aetnafeds.com. ©2015 Aetna Inc.

19.12.306.1 (8/15)

Open Season Report

(Continued from p. 40) the largest participating HMOs; the 2016 cost of each plan for both employees and retirees; and the increase/decrease from 2015.

Rates listed are applicable to most non-postal federal employees as well as all retirees and survivors. For a listing of all premiums, go to OPM’s website, www. opm.gov/healthcare-insurance/ healthcare.

The maximum 2016 monthly

government contribution will be $462.30 for Self Only coverage, $1,058.42 for Self and Family, and $998.88 for Self Plus One.

Changes for 2016

New HMO Plans. Four new plans are available for 2016: • UnitedHealthcare Insurance Company Choice Plan in Alabama; the Phoenix and Tucson, AZ, areas; Arkansas; Colorado; District of Columbia; Des Moines, IA; western Kentucky; Louisiana; Maryland;

ways to get OPM OPen Season Info

The Office of Personnel Management (OPM) has announced several ways to get information on Federal Benefits Open Season 2015. They are: • THE WEB: Information about Open Season can be found on the OPM website at: www.opm.gov/openseason.

• FACEBOOK: Employees and retirees can get updates on Open Season by visiting the Office of Personnel Management’s Facebook page: www. facebook.com/USOPM. • PRESENTATIONS: There will be several prerecorded presentations posted to the OPM website beginning in November to give employees and retirees an opportunity to learn more about the federal benefits program. Subjects include the new enrollment type Self Plus One, dental and vision, choosing a health plan and more. View the presentations at: www. opm.gov/openseason.

self plus one

Self Plus One is a new enrollment type in the FEHBP that covers the enrollee and one designated eligible family member. Employees and annuitants currently enrolled in the FEHBP will be able to select a Self Plus One enrollment beginning in the 2015 Open Season. They must make the change; it is not automatic. For more: www.opm.gov/selfplusone.

Additional information

Thinking About Retirement? More information for employees thinking about retirement and their federal employee health benefits can be found on the OPM website. For FEHBP and retirement, go to www.opm.gov/ healthcare-insurance/fastfacts/thinkfehb.pdf; for FEDVIP and retirement, go to opm.gov/healthcare-insurance/fastfacts/thinkfedvip.pdf.

Federal employees’ group life insurance (FEGLI)

There will be a FEGLI Open Season in September 2016 with a coverage effective date approximately one year later. More information will be available in mid-2016 at: www.opm.gov/life.

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Mississippi; Knoxville, TN; and the Northern Virginia area; • UnitedHealthCare Insurance Company Choice Plus HDHP in Alabama; the Phoenix and Tucson, AZ, areas; Arkansas; Colorado; Des Moines, IA; western Kentucky; Louisiana; Mississippi; and Knoxville, TN; • Paramount Health Care in Northwestern Ohio; and • Optima Health Plan in the Hampton Roads (VA) region.

New Plan Options. The following plans have new options for 2016: • Health Net of California is adding a Basic option for Southern California; • Group Health Cooperative is adding an HDHP option in Northern Idaho and in portions of Washington; • Presbyterian Health Plan is adding a Standard option in New Mexico; and • Physicians Plus Insurance Corp. is adding a Standard option in south central Wisconsin.

Plan Terminations. Six HMO plans will drop out of the FEHBP after December 31, 2015: • Coventry Health Plan of Florida (codes 5E and J4); • Coventry Health Care of Louisiana (code BJ); • Physicians Health Plan of Northern Indiana (code DQ); • Fallon Community Health Plan in Massachusetts (code JG); • Piedmont Community Health Plan in Virginia (code 2C); and • The Health Plan of the Upper Ohio Valley (code U4).

The 3,000 federal enrollees in these plans must select new coverage during Open Season. Plans generally decide to withdraw from the FEHBP based on an assessment of enrollment, utilization

Our plans may have surprising new ways to save.

It’s Open Season — the time to explore health plans that could be a better fit for you and your budget. Consider plan options from UnitedHealthcare that include: • Low-cost options • No-cost annual checkups • No-cost preventive dental care • Virtual health visits and rewards for healthy actions

Learn more at uhcfeds.com.

Open Season runs from November 9 through December 14.

Not all health plans are available in all areas. Visit uhcfeds.com to find a listing of plans available in your area. ©2015 United HealthCare Services, Inc. Insurance coverage provided by UnitedHealthcare Insurance Company or its affiliates.

Open Season Report

and premium. However, OPM can initiate a termination if it determines that a plan is no longer able to meet its contractual obligations.

All enrollees in an HMO should review their plan’s 2016 brochure to see if they still live or work in their plan’s service area. For instance, Aetna Open Access, codes HF1 and HF2, no longer will include Nevada in its service area.

Information Sources

Federal agencies will provide employees with Open Season information and sources for more information. OPM will provide Open Season information to most eligible annuitants, survivor

annuitants and former spouse annuitants.

Plans will not automatically send enrollees their 2016 bro-

NARFE urges eligible members to take a close look at the new Self Plus One enrollment. “On average, switching from Self and Family to Self Plus One will save enrollees about $278 for the year in 2016,” NARFE said. “However, as compared to their 2015 Self and Family premiums, they will see an average premium increase of about $232 for the year due to the overall increases in premiums,” the Association added. “That, of course, is preferable to the $510 average premium increase for Self and Family premiums for the year.” Enrollees who want to switch from Self and Family to Self Plus One must actively change their enrollment; their agency or OPM will NOT automatically change their enrollment.

For more information, see Q&A on p. 48.

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.

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—Federal Benefits Service Department

Is Self plus one for you?

new face of eye health

46

chures. You must request one or download it from the OPM website, www.opm.gov/openseason.

You’re Retired 1-800-222-2798 www.apwuhp.com

And it’s Time to... Relax your Way to Healthy Savings!

Open Season:

November 9 to December 14, 2015

You’re retired and it’s time to consider your health care options. Health coverage and cost will be important to you. Consider the APWU Health Plan’s High Option. Under the High Option, retirees have access to rich benefits. Electing to enroll in Medicare Part A and B in addition to the High Option offers even more enhancements. Enrolling in all three is a great strategy and offers the most protection against health care costs. See the full list of advantages: • No deductible or coinsurance on covered expenses (including hospital stays)* • National coverage: See any doctor or facility you wish; no referrals or network to worry about* • APWU Health Plan will coordinate with Medicare for you-no additional paperwork* • 100% coverage for lab tests when performed by LabCorp or Quest Diagnostics • Discounts on eye care and hearing needs • Generic medication and supplies to treat diabetes and hypertension are covered at 100% through Health Management Programs • Strong pharmacy benefits, including mail order with auto refills; and on average better coverage than Medicare Part D • APWU coordinates with Medicare on drugs covered by Part B so members don’t have any out-of-pocket costs* • Cancer Centers of Excellence covered at 95% • Preventive care and screenings paid at 100% (in-network) • Affordable monthly premiums *High Option members when Medicare Part A and B pay as primary

High Option Highlights 2016 APWU Retiree Monthly High Option Rates Coming Soon...

Check www.apwuhp.com for updates!

Open Season Report

FEHBP FAQs for open season

W

hy are the enrollee shares for some Self Plus One enrollments higher than Self and Family enrollee shares for the same plan?

The Office of Personnel Management (OPM) has provided the following answer to that question: “For most enrollees, the enrollee share for Self Plus One will be lower than the enrollee share for Self and Family. However, it is possible that some plans will have higher enrollee shares for Self Plus One enrollments than for Self and Family enrollments.

The statutory formula that is used to calculate the government contribution is based on the average of all plan premiums and requires that OPM calculate a maximum contribution for each enrollment type. In other words, there is a limit to how much the government will contribute toward the cost of a Self Only, Self Plus One, or Self and Family enrollment. The government contributes the lesser of the maximum contribution or 75 percent of the total premium.

The remaining amount is the enrollee share (how much the enrollee must pay). In some cases, such as plans with a premium cost that is above the program average, this calculation may re

A Total premium B Lesser of Max Gov’t. Contrib.

C A x 75 D Gov’t. Contrib. Lesser of B

and C E Enrollee Contrib. A-D 48

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sult in a higher enrollee share for a Self Plus One enrollment than a Self and Family enrollment.”

See example below.

I

s it possible to make a serious mistake in choosing a plan?

All FEHBP plans are good. All cover hospital and physician care, prescriptions, outpatient diagnostic lab tests, treatment of mental illness, home health care, routine mammograms for women over 35, routine prostate cancer tests for men over 40 and smoking cessation programs. Some also cover special benefits such as acupuncture and dental care. In addition, many HMOs provide more comprehensive preventive care.

Generally, you can make a serious mistake only if you enroll in: a costly plan or option when you don’t need one; a plan that doesn’t cover a specific benefit when you need it; self-only coverage when you need family coverage, or vice versa; or if you live outside the continental United States and Puerto Rico and enroll in a plan that does not offer “overseas” benefits.

W

hich benefit is the most important to consider?

For those not enrolled in MediSelf Plus One Self & Family

$400 $291 $300 $291

$420 $320 $315 $315

$109

$105

care Part B, the catastrophic protection benefit is very important.

It puts a dollar limit on what you have to pay out-of-pocket in terms of co-payments and coinsurance for the expenses that the plan covers. Considering the catastrophic protection benefits for a two-option plan, it is not possible, generally, to recover enough in additional high-option benefits to offset the much higher premiums.

However, you should carefully compare the options, especially prescription drug coverage.

M

y health plan will continue to participate in the FEHBP next year.

What do I do if I want to stay with my present enrollment?

Don’t do anything. Your present coverage is automatically continued unless you make a change or unless your plan or option is terminated. (Retirees and survivor annuitants, see “Low Annuity” note on p. 50.)

M

y health plan will not be participating next year.

What happens if I do not change to another plan for 2016 before the Open Season period ends?

Federal employees: You must elect a new plan, or you will not have any FEHBP coverage in 2016.

Retirees and survivor annuitants: OPM will enroll you automatically in Blue Cross and Blue Shield (Standard) if you do not choose a new plan for 2016. If your plan terminates the option in

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Open Season Report

Got questions about Medicare and the FEHBP? NARFE’s got the answers at “Medicare and the FEHBP” at www.narfe.org.

which you are enrolled for 2015, OPM may enroll you in the plan’s other option if it is approximately equivalent to the option being terminated and you do not choose a new plan for 2016.

W

hat are the advantages/disadvantages to HMO enrollment?

HMOs offer a good alternative to FFS plans. HMOs cover hospital and physician care and prescrip-

tions, but they stress preventive care, covering routine physicals, immunizations and well-baby care. Many HMOs offer more comprehensive coverage (including dental) at lower premiums

Important Reminders for all FEHBP Participants • Research Preferred Providers. Feefor-service (FFS) plans use preferred provider organizations (PPOs) and doctors to help contain program costs and keep premiums at a reasonable rate. Usually, you will save a lot on out-of-pocket costs if you use your plan’s preferred hospitals or doctors. However, PPO arrangements are business contracts that are not always renewed. PPO arrangements can be made and also can be discontinued from one year to the next. In addition, there may not be PPO arrangements in all parts of the country. If you are enrolled in an FFS plan or thinking of enrolling in one, you should check with the hospitals and doctors you use and ask them if they are PPO providers in your plan. You also can review your plan’s PPO directory to see if your doctor or hospital is a PPO provider for your plan.

• Ask Questions. Be careful to confirm information in your plan’s brochure by speaking with a plan representative. Do not assume anything. For example, plans may describe benefits in terms of “annual” or “annually.” This would seem to mean “each year,” when, in fact, it may mean that a year must have elapsed before it will cover you again. Also, while a hospital may be a PPO for your plan, not all departments in that hospital are PPO providers. Hospitals contract out much of their emergency room, technical and lab work to other groups that may not be PPO providers for your plan, and you will pay more for their services.

• ID Cards. New plan identification cards showing your enrollment are issued by the health plan. If you do not change to another plan or option during Open Season, you don’t necessarily get a new ID card from the plan.

Important Reminders for Annuitants and Survivors • Open Season Notification. The Office of Personnel Management (OPM) will send you notification by mail or electronically if you have provided OPM with your email address. Both notices will provide details on Open Season and guidance on how to obtain information and materials.

• PLAN PARTICIPATION. Make sure your current plan will participate in the Federal Employees Health Benefits Program (FEHBP) for 2016. This is especially important if you are currently enrolled in a health maintenance organization (HMO) plan.

• Staying Put. If, after reading your current plan’s brochure – particularly about changes and premiums for 2016 – you decide to continue your current coverage, you do not have to do anything. Your enrollment in your current plan will continue into 2016, and the new premiums will be deducted from your February 1, 2016, monthly annuity payment.

• Making a Change. For Open Season changes, call the Open Season Express number provided in your FEHBP Open Season notice, log on to Open

50

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Season Online at the Internet address provided in your Open Season notice, or contact the Open Season Processing Center provided in your Open Season notice.

• Low Annuity. If your monthly annuity is not enough to cover your plan’s 2016 premiums, you must either change to a less-costly option or change to a plan that you can afford. You also may pay your monthly premiums directly to OPM if you want to stay with your current plan but your monthly annuity is not sufficient to withhold the premium amount.

• Medicare Enrollees. Make sure you read your plan brochure’s sections titled “When You Have Medicare” and “Coordinating Benefits With Other Coverage.”

• Age 65 and Not Enrolled in Medicare.

Fee-for-service (FFS) plans include a section in their brochures titled “When You Are Age 65 or Over and Do Not Have Medicare.” This section details how, by law, the plan must use Medicare’s approved amounts on which to base its payments.

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Open Season Report

than FFS plans. HMO plans tend to be offered more frequently in urban areas than in rural areas.

For most care, enrollees must use doctors and hospitals that are approved by the HMO or with which the HMO has working agreements. Most HMOs require that an enrollee’s care be coordinated by a primary care physician.

Compared to FFS plans, enrollee access to specialists is more limited under an HMO plan.

HMOs generally limit benefits outside of their full service areas to emergency services only.

Doctors’ contracts with HMO plans do not necessarily run from January 1 through December 31, which means that a plan doctor

may leave the plan during the FEHBP contract year.

The FEHBP frequently adds new plans and drops others, particularly HMOs. Also, HMO plans might change the area of coverage. Make sure to check coverage areas.

(Medicare-eligible enrollees cannot open an HSA.) HDHPs may not be appropriate for those with higher health care costs. And, if you or a family member gets very sick, you have to meet your plan’s catastrophic limit, which could be as much as $10,000 out-of-pocket.

H

—Federal Benefits Service Department

ow would an HDHP/HSA or HDHP/HRA help an FEHBP member?

HDHP stands for high-deductible insurance plan. Premiums may be lower than fee-forservice or HMO plans. Anyone enrolled in an HDHP may be eligible for a health savings account (HSA) or a health reimbursement account (HRA).

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Open Season Report

FEDVIP Premiums

T

he average premium increase for the Federal Employees Dental and Vision Insurance Program (FEDVIP) will be 2.23 percent for dental and 3.61 percent for vision, the Office of Personnel Management (OPM) announced September 29. FEDVIP is separate and different from the Federal Employees Health Benefits Program (FEHBP).

OPM has contracted with 12 insurance carriers to provide comprehensive coverage under 14 different plans.

Dental Insurance

There are 10 dental plans. Six are national/international: • Aetna Dental, PPO; • Delta Dental, PPO; • FEP Blue Dental (Blue Cross and Blue Shield), PPO; • GEHA, PPO; • MetLife, PPO; and • United Concordia.

Four are regional: • Dominion Dental, HMO; • EmblemHealth, PPO; • Humana, EPO; and • Triple-S Salud, PPO. Dental plans will provide a comprehensive range of services, including the following: • Class A (Basic) services, which include oral examinations, prophylaxis, diagnostic evaluations, sealants and X-rays.

• Class B (Intermediate) services, which include restorative procedures such as fillings, prefabricated stainless steel crowns, periodontal scaling, tooth extractions and denture adjustments.

• Class C (Major) services, which include endodontic services such as root canals, periodontal services such as gingivectomy, major restorative services such as 54

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crowns, oral surgery, bridges and prosthodontic services such as complete dentures.

• Class D (Orthodontic) services with a 12-month waiting period.

Please review the dental plans’ benefits material for detailed information on the benefits covered, cost-sharing requirements and provider directories.

Vision Insurance

There are four vision plans: • Aetna Vision, PPO; • FEP BlueVision (Blue Cross and Blue Shield), PPO; • UnitedHealthcare Vision, PPO; and • Vision Service Plan (VSP), PPO. Vision plans will provide comprehensive eye examinations and coverage for lenses, frames and contact lenses (in lieu of eyeglasses). There are no deductibles or waiting periods. Other benefits such as discounts on LASIK surgery also may be available.

You must review the vision plans’ benefits material for detailed information on the benefits covered, cost-sharing requirements and provider directories.

premiums

Premiums will vary by plan and by enrollment type.

Premiums for the nationwide and regional dental plans are based on home ZIP codes. (For most dental plans, there are five “rating areas” for each carrier. The rating areas for each carrier are not the same for all plans. See the specific plan brochure or call the plan’s customer service number to determine your region and premium.)

There is no government contribution to FEDVIP premiums.

If you are a federal employee, your premiums will be taken from your salary on a pretax basis when your salary is sufficient to make the premium withholding.

If you are an annuitant, premiums will be withheld from your monthly annuity check when your annuity is sufficient. Based on the Internal Revenue Code, pretax premiums are not available for annuitants.

For information on each plan’s premiums, visit www.opm.gov/ healthcare-insurance/dentalvision/plan-information.

FEDVIP Fast Facts

Eligibility. Federal and U.S. Postal Service employees eligible for the FEHBP or the Health Insurance Marketplace (Exchange), unless excluded by law or regulation, are eligible to enroll in FEDVIP. Annuitants are eligible regardless of FEHBP or Health Insurance Marketplace eligibility.

Enrollment options. The following options are available: • Self Only. Covers only the enrolled employee or annuitant; • Self Plus One. Covers the enrolled employee or annuitant plus one eligible family member specified by the enrollee; and • Self and Family. Covers the enrolled employee or annuitant and all eligible family members.

Eligible family members.

Eligible family members include your spouse, unmarried dependent children under age 22, and unmarried dependent children age 22 or over incapable of self-support because of a mental or physical disability that existed before age 22.

Note: The Affordable Care Act does not mandate coverage under dental and vision plans for dependents up to age 26.

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Managing Money

What’s behind the rise in long-term care rates

I

’ve witnessed substantial changes in the long-term care (LTC) insurance industry throughout my nearly 20 years in financial services. Many of the changes were

good. Policies evolved from mainly nursing home care to more comprehensive plans, including coverage for assisted living facilities and home care. More recently, though, the long-term care insurance industry has come under scrutiny, as many companies passed along substantial premium increases, putting financial pressure on the nearly 8 million Americans who currently have LTC policies. Though not to the same extent, the Federal Long Term Care Insurance Program (FLTCIP) has experienced its share of pain as well.

Over the past few years, two of the biggest long-term care insurers have hit their existing policyholders with increases ranging, on average, from 40 to 50 percent. LTC insurers petition each state separately, and policyholders in some states with certain benefits have experienced premium increases as high as 75 to 90 percent.

The premium turmoil isn’t isolated to private-sector plans.

The Office of Personnel Management (OPM) announced on August 3 that rates have increased for new applicants applying after August 1 in the FLTCIP, which is offered through an OPM contract with John Hancock Insurance. This increase came with no prior notice and applies even to those

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who were quoted lower rates but did not enroll prior to August 1.

Fortunately for existing FLTCIP policyholders, the recent premium increase didn’t affect them. However, this wasn’t the case in 2010, when premiums increased for FLTCIP enrollees who elected the automatic compound inflation option and whose age at purchase was 69 or younger.

These policyholders saw their rates increase between 5 and 25 percent, with those who purchased policies when they were under age 65 receiving the biggest − 25 percent − increase.

Much like the policyholders with private LTC insurance, those FLTCIP enrollees had the option to alter their coverage to keep the premiums steady.

By Mark A. Keen,

CFP®

It’s important to understand that insurance companies cannot raise your premiums based on your individual circumstances – you are getting older or experiencing adverse changes in your health. As the FLTCIP’s website states: “Premiums may only increase if you are among a group of enrollees whose premium is determined to be inadequate.”

This begs the question: Why have we seen such substantial premium increases? Many industry experts, as well as the FLTCIP website, place the blame on several faulty assumptions. First, the “persistency rate” has been higher than expected. In other words, once people obtain coverage, they tend to keep it. Insurers estimated that 4-5 percent of policyholders would voluntarily let their policies lapse; however, in reality, that figure is closer to just 1 percent.

The second faulty assumption was that claims costs would not be as high as they have been, an aftershock caused, to a large extent, by the persistency rate.

Lower lapse rates equal more claimants equal higher-thanexpected costs.

Third, interest rates have remained stubbornly low, thus yielding a lower return on the premiums invested by the insurance companies.

The rising costs of LTC insur-

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

ance are disturbing, but consider the costs of elder care. According to LongTermCare.gov, a one-bedroom unit in an assisted living facility costs an average of $3,293 per month, and a private room in a nursing home averages $6,965 per month – a little more than $250,000 for a three-year stay. According to the U.S. Department of Health and Human Services, about 70 percent of people turning age 65 will need long-term care during their lives. With

10,000 baby boomers turning 65 every day, it’s not hard to imagine where LTC costs are headed.

And we can’t count on private health insurance and Medicare because they cover only short-term, rehabilitative care, which is not what most longterm care is. If you think this will change, it won’t.

As contentious as the debate was over the Affordable Care Act, there was one thing Democrats and Republicans agreed on – stripping long-term care coverage from the bill.

We likely haven’t seen the last of the premium increases, but before making any quick decisions regarding your existing policy, it would be prudent to speak to your financial adviser.

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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57

The Informed Citizen

State Elections, 2016 sessions

E

lections are one of the defining features of representative democracy. Three states conduct gubernatorial elections this year and 11 next year. The 2015 states are Kentucky, Louisiana and Mississippi. Seven legislative chambers in four states – Louisiana, Mississippi, New Jersey and Virginia – will elect their entire membership – 129 senate seats and 407 state house seats. (With terms expiring in 2017, New Jersey’s Senate is the odd chamber out.) Of the seven chambers with elections, the Virginia Senate features the smallest gap in partisan balance, with 19 seats held by Democrats and 21 held by Republicans.

2016 Legislative Sessions MultiState Associates, a leading state and local government relations services company, has posted 2016 Projected Session Dates for 46 states. NARFE’s Virginia Federation has prominently posted its 2016 State Legislative Plan on its website and will send it to legislative candidates in the November elections. Other federations are planning to make their updated state plans available on federation websites.

State Budget Prediction In September, the Urban Institute’s State and Local Finance Initiative released “Governing with Tight Budgets: Long Term Trends in State Finances.” This timely examination of both taxes and expenditures states: “The tenuous balance between revenues and outlays in state finances is becoming more precarious. On one side of the

58

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ledger, the growth in the traditional sources of state revenue is slowing down; on the other, expenditure growth is poised to accelerate. As a result, states will increasingly face more difficult annual budget challenges as they attempt to satisfy balancedbudget requirements.” NARFE will have to be ready to defend federal annuitant interests in statehouses around the country.

Building Relationships With State Legislators NARFE members should meet their state legislators and strive for ongoing relationships. Our Legislative Action Center makes it easy to find both federal and state elected officials. Merely inserting a ZIP+4 produces a listing of elected officials with links to more detailed biographical information and official government websites. OpenStates is the perfect complement to NARFE’s Legislative Action Center.

By Christopher Farrell, senior analyst

Web Gems For coverage of gubernatorial elections, use the website of the University of Virginia Center for Politics (www.centerforpolitics. org/crystalball/). Candidate lists and predictions are updated frequently. Free electronic updates for gubernatorial, congressional and presidential races are available via email to subscribers.

Ballotpedia provides summary data and links to primary sources (http://ballotpedia.org/ State_legislative_elections,_ 2015).

Republican (http://rslc.gop) and Democratic (http://dlcc. org/) party websites offer information amid obvious spin.

The 2016 Projected Session Dates referenced above are provided by MultiState (www.multistate.com/site. nsf/2016sessions?openPage).

NARFE’s Virginia Federation makes state legislative information readily available to members (www.vanarfe.org/).

The Urban Institute’s new issue brief is now available (http:// tpc.io/1V67RuZ).

The starting point for legislative engagement is NARFE’s Legislative Action Center (http:// cqrcengage.com/narfe/State_ Advocacy).

OpenStates provides interactive maps and legislator, committee, media, recent votes and campaign finance information. (http://openstates.org/).

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Name Address City

ST

Zip

Daytime Phone # Email Address

Check or money order payable to: Dream Products, Inc.

Send Order To: 412 Dream Lane, Van Nuys, CA 91496

SEP

1 Month

G FUND

F FUND

C FUND

S FUND

I FUND

0.18%

0.75%

-2.47%

-4.80%

-5.02%

YTD

1.51%

1.44%

-5.24%

-5.98%

-4.33%

1 year

2.07%

3.39%

-0.54%

0.17%

-8.39%

3 year*

2.02%

2.18%

12.46%

13.00%

5.94%

5 year*

2.04%

3.41%

13.39%

13.17%

4.30%

10 year*

3.01%

4.85%

6.85%

7.97%

3.21%

L INCOME

L 2020

L 2030

L 2040

L 2050

-0.51%

-1.67%

-2.26%

-2.67%

-3.09%

YTD

0.31%

-1.55%

-2.56%

-3.27%

-3.96%

1 Year

1.45%

0.05%

-0.65%

-1.09%

-1.74%

3 year*

3.89%

6.80%

8.02%

8.91%

9.67%

5 year*

4.08%

7.11%

8.32%

9.19%

N/A

sep

*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

The I, C and S Funds all fell in September, driven primarily by worries about China’s slowing economy. These worries impacted commodity and energy prices, causing materials and energy stocks to be the two worst-performing sectors last month. The Volkswagen scandal and a New York Times article on drug pricing added to market declines. The F Fund benefited as Treasury yields fell by 15 basis points when the Federal Reserve declined to raise rates, citing “global economic and financial developments.”

The L Funds performed as expected.

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

Countdown to cola

T

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.19 percent in August. 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. August’s index, 233.366, is down 0.37 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. August’s index is 1.50 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

Stock funds fall on worries about china’s economy

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

MARCH

5,478

8,898

20,594

81.6%

December

229.909

-0.71

-1.85

APRIL

6,292

8,660

18,226

72.6%

January 2015

228.294

-0.70

-2.54

229.421

+0.50

-2.06

MAY

7,845

10,697

15,374

68.0%

February

june

6,920

7,783

14,511

68.7%

March

231.055

+0.71

-1.36

69.0%

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

August

233.366

-0.19

-0.37

July

9,862

AUGUST

7,341

7,918 7,446

16,455 16,350

69.6%

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/.

60

CPI-W

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

$11,464,433* 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

Get in the Spirit!

NARFE members can look forward to receiving a package of beautiful cards for the upcoming holiday season. The card program is both a thank you gift to members and an important opportunity for raising funds. An alternative selection of cards is available upon request.

The holiday card program, which began in 2013, has become a NARFE tradition.

Webinar opens NARFE Institute

I

n October, NARFE held the first in of Q&A in an online chat. a series of live webinars designed Now archived on NARFE’s webto meet the growing information site, this breakthrough webinar is needs of the federal community and the foundation for the NARFE FedNARFE members. eral Benefits Institute – a new way Tammy Flanagan (above), a nato provide members with relevant, tionally recognized federal retiretimely and trusted content about ment expert and NARFE member, their federal benefits. White papers, presented a one-hour webinar titled benefit guidance, Q&As and other “Will You Be Ready to Retire?” and resources also will be housed in the Life Membership Apl_New 3/26/13 3:49 PM Page 1 All are free to members. followed up with an Design additional hour Institute.

Through the NARFE Federal Benefits Institute, NARFE members can look forward to future webcasts that will be presented live and archived for on-demand viewing. A webinar on the Federal Employees Health Benefits Program with a focus on Medicare will take place in November, and a post-retirement seminar will take place at the 2016 National Convention in Reno, NV.

NARFE NATIONAL LIFE MEMBERSHIP APPLICATION Life Membership Fee Schedule Ages

Contact Information n Mr. n Mrs. n Miss n Ms. Full Name _____________________________________________ Street Address _________________________________________ Apt./Unit______________________________________________ City _______________________ State _____ ZIP _____________ Phone (__________) ____________________________________ Email_________________________________________________ Date of Birth _________ /_________ /___________________ dd

mm

yyyy

Recruiter ID # (if applicable) _________________________________ Chapter Number _______________________________________ (call 800-456-8410 for chapter information) Membership Information Member Number: ______________________________________ (New members) Membership is open to civilians in any agency of the federal or D.C. (before Oct. 1, 1987) governments eligible for a federal annuity.

Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin.

Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes.

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Single or Quarterly Payment Installments 30-39 $1,796 $450.25 40-50 1,408 353.25 51-55 1,127 283.00 56-60 960 241.25 61-65 801 201.50 66-70 653 164.50 71-75 514 129.75 76-80 392 99.25 81-90 251 64.00 91-100+ 127 33.00

I am a (check all that apply) n Active Federal Employee n Active Federal Employee Spouse n Annuitant n Annuitant Spouse n Survivor Annuitant

PAYMENT INFORMATION n Single Payment or n Quarterly Installments (4 payments) Life Membership fee amount: $ ______________________ PAYMENT OPTIONS n Check or Money Order (Payable to NARFE) n Charge my: n MasterCard n VISA n Discover n American Express Card No. __________________________________________ Expiration Date _________ /_________ mm

yyyy

Name on Card ______________________________________ Signature ____________________________ Date ________ MAIL THIS APPLICATION TO NARFE Member Records 606 N. Washington St. / Alexandria, VA 22314-1914

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

— J. Fitzgerald, VA

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

Complete with battery backup in case of power outage

Our Perfect Sleep Chair® is just the chair to do it all.

It’s a chair, true – the finest of lift chairs – but this chair is so much more! It’s designed to provide total comfort and relaxation not found in other chairs. It can’t be beat for comfortable, long-term sitting, TV viewing, relaxed reclining and – yes! – peaceful sleep. Our chair’s recline technology allows you to pause the chair in an infinite number of positions, including the Trendelenburg position and the zero gravity position where your body experiences a minimum of internal and external stresses.

You’ll love the other benefits, too: It helps with correct spinal alignment, promotes back pressure relief, and This lift chair encourages better posture to puts you safely prevent back and muscle pain. on your feet!

And there’s more! The overstuffed, oversized biscuit style back and unique seat design will cradle you in comfort. Generously filled, wide armrests provide enhanced arm support when sitting or reclining. The high and low heat settings along with the dozens of massage settings, can provide a soothing relaxation you might get at a spa – just imagine getting all that in a lift chair! Shipping charge includes white glove delivery.

Professionals will deliver the chair to the exact spot in your home where you want it, unpack it, inspect it, test it, position it, and even carry the packaging away!

Includes one year service warranty and your choice of fabrics and colors. If you’re not 100% satisfied simply return the chair within 30 days for a refund of the product purchase price. – Call now!

The Perfect Sleep Chair

®

Call now toll free for our lowest price.

Please mention code 101997 when ordering.

1-866-565-3489 Long Lasting DuraLux Leather

DuraLux II Microfiber

Tan

Burgundy Cashmere

Fern

Chocolate Burgundy

Chocolate Indigo

© 2015 firstSTREET for Boomers and Beyond, Inc.

46383

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

Sit up, lie down — and anywhere in between!

Active and Retired Federal Employees ...

JOIN NARFE TODAY!

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

Who Should Join?

Three Easy Ways To Join

If your future security is tied to federal retirement benefits — 1. Complete this application and return by mail with your payment. federal retirees, current employees, spouses, and individual 2. Join online at www.narfe.org. survivors — you should join NARFE. 3. Call 800-627-3394, Monday through Friday, 8 a.m. to 5 p.m. ET.

NARFE MEMB ERSHIP APPLIC ATION

1Q5

q YES. I want to join NARFE.

I am a (check all that apply) q Active Federal Employee q Active Federal Employee Spouse q Annuitant q Annuitant Spouse q Survivor Annuitant

Street Address _____________________________________

Apt./Unit __________________________________________

q Please enroll my spouse

City _______________________ State _____ ZIP __________

Spouse’s Full Name ________________________________

Phone (__________) _________________________________

Spouse’s Email

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.

q Mr. q Mrs. q Miss q Ms.

Full Name _________________________________________

Choose Your Membership Type

All NARFE members receive narfe magazine, access to federal benefits specialists, NARFE’s News Watch, legislative Hotline, and exclusive member discounts, along with professional lobbyists advocating on your behalf. Members choose one of two chapter options.

q Local Chapter

Under the direction of local leadership, chapters offer regular meetings often with invited speakers, as well as networking, volunteer and grass-roots lobbying opportunities. Annual chapter dues, determined by the locality, are charged in subsequent years.

Chapter Affiliation: Chapter # __ __ __ __

OR

_____________________________

PAYMENT OPTIONS q Check, Money Order or Bill Pay (Payable to NARFE) q Bill me (NARFE membership will start when payment is received.) q Charge my: q MasterCard q VISA q Discover q American Express Card No. ____________________________________ Expiration Date _____ /_________ mm yyyy Name on Card ________________________________

q eNARFE

The eNARFE Chapter provides a place for members to keep active in and informed about the federal community without the formality of a local chapter. Advocacy is encouraged within the e-community, and members may join with local groups for grass-roots participation. There are no additional dues for the eNARFE Chapter.

TOTAL DUES $40 First-Year Dues X __________ = __________ Per Person # Enrolling Total Dues

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

EE FR

G0 N $15 PIver IdPers o or SoH n

Actual size is 40.6 mm

Millions Demand America’s Purest Silver Dollar. Shouldn’t You? Secure Your New 2015 Silver Eagle Dollars Now!

M

illions of people collect the American Eagle Silver Dollar. In fact it’s been the country’s most popular Silver Dollar for over two decades. Try as they might, that makes it a very hard “secret” to keep quiet. And right now, many of those same people are rushing to secure the newest 2015 U.S. Eagle Silver Dollars — placing their orders now to ensure that they get America’s newest Silver Dollar— in stunning Brilliant Uncirculated condition — before millions of others beat them to it.

America’s Brand New Silver Dollar

This is a strictly limited offer of one of the most beautiful silver coins in the world.

Today you have the opportunity to secure these massive, hefty one full Troy ounce U.S. Silver Dollars in Brilliant Uncirculated (BU)condition. The nearly 100-year-old design features walking Lady Liberty draped in a U.S. flag, while the other side depicts a majestic U.S. Eagle, thirteen stars, and an American shield.

The Most Affordable Precious Metal

Silver is by far the most affordable of all precious metals — and each full Troy ounce American Eagle Silver Dollar is governmentguaranteed for its 99.9% purity, authenticity, and legal tender status.

Our Lowest Price in Years

Why are we releasing the most popular Silver Dollar in America for as little as $19.50 each? To introduce you to what hundreds of thousands of smart collectors and satisfied customers have known since 1984: GovMint.com is the best source for coins worldwide.

Timing is Everything

Our advice? Keep this to yourself. The more people who know about this offer, the worse for you. Demand for Silver Eagles in recent years has shattered records. Experts predict that 2015 Silver Eagles may break them once again. Our supplies are limited and there is a strict limit of 40 per household.

30-Day Satisfaction Guarantee

You must be 100% satisfied with your 2015 American Eagle Silver Dollars or return them within 30 days of receipt for a prompt refund (less s/h). Don’t miss out on this exciting new release. Call immediately to secure these American Eagle Silver Dollars NOW!

2015 American Eagle Silver Dollar BU 1-4 Coins $20.95 ea + s/h 5-7 Coins $20.50 ea + s/h 8-9 Coins $20.50 ea + FREE SHIPPPING 10-19 Coins - $19.95 ea + FREE SHIPPPING 20-40 Coins - $19.50 ea + FREE SHIPPPING Offer Limited to 40 per Household

FREE SHIPPING on 8 or More!

Limited time only. Product total over $150 before taxes (if any). Standard shipping only. Not valid on previous purchases.

For fastest service, call today toll-free

1-800-956-7267 Offer Code PEG409-08

Please mention this code when you call.

But the clock is ticking...

GovMint.com • 14101 Southcross Dr. W. Dept. PEG409-08 • Burnsville, Minnesota 55337 Prices and availability subject to change without notice. Past performance is not a predictor of future performance.

NOTE: GovMint.com® is a private distributor of worldwide government coin and currency issues and privately issued licensed collectibles and is not affiliated with the United States government. Facts and figures deemed accurate as of August 2015 ©2015 GovMint.com.

THE BEST SOURCE FOR COINS WORLDWIDE™

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. offering low-rate loans and a high-interest checking account. The credit union offers members nationwide access to more than 5,000 shared branches and 56,000 surcharge-free ATMs.

finance and Legal

new

ID Shield 571-830-5489 www.legalshield.com/info/narfe LegalShield along with Kroll will monitor your identity from every angle, not just your Social Security number, credit cards and bank accounts. This takes the work required to restore your identity off your shoulders, placing it in the hands of a licensed fraud investigator.

NARFE members receive the discounted monthly rate of $8.95 for individuals or $17.95 for families when you sign up through the website above.

w

ne LegalShield 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.

NARFE members receive the discounted rate of $16.95 for individuals or $18.95 for families 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 66

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insurance

Federal Long Term Care Insurance Program 800-LTC FEDS www.LTCFEDS.com Make long-term care insurance part of your retirement plan. With benefits designed specifically for the federal family, the Federal Long Term Care Insurance Program offers a smart way to help protect savings and assets, and remain independent should you need long-term care services someday. Start planning for the future. Visit www.

LTCFEDS.com today.

GEICO 800-368-2734 www.geico.com/fed/narfe GEICO continues to offer a special discount opportunity for NARFE members. To find out how much you could save, visit our website or call today and mention that you are a NARFE member.

Have your current coverage information available in order to secure a comparable quote. On top of a great discount, your completed quote will help benefit NARFE’s causes and initiatives!

NARFE Insurance Services 800-233-5764 www.narfeinsurance.com Designed and administered by Mercer Consumer, exclusively for NARFE members: senior age whole life, term

life, Medicare supplements, hospital income plan, short-term recovery insurance, pet insurance, accidental death and dismemberment, cancer care, enhanced dental insurance and long-term care.

Moving services

Bekins Van Lines 800-248-4810 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. Please mention you are a NARFE member.

Wheaton World Wide Moving 800-248-7960 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. Call today and mention you are a NARFE member to start the moving process.

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.

Telecommunications

new

Sprint 877-746-8249 www.sprint.com/fed NARFE members receive a 15% discount with Sprint! Access www.sprint. com/fed, call 877-746-8249 or visit the Sprint store nearest you to take advantage of this offer. Please bring your member ID card with you to our stores to sign up for the discount, and provide code GNARF_ZMB.

new

Verizon FiOS www.verizon.com/ connectionsprogram Members of NARFE can save up to $10 a month on a new qualifying Triple Play bundle with Verizon FiOS Internet, TV and home phone service – savings of up to $120 per year. The FiOS 100% fiberoptic network delivers award-winning broadband and entertainment to your home. Only FiOS Internet customers get upload speeds as fast as their download speeds. With FiOS TV, 625+ channels are available, including 185+ in HD, and over 120,000 On Demand titles, thousands free. These exclusive online-only savings are available only through our partner website, above.

travel

Alamo 800-462-5266 www.alamo.com Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call or visit our website today and reference Contract ID 262544.

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 through phone number or website above; cannot be redeemed at individual hotels.

ticipating locations. Call and give the agent your special discount ID number, 8000002694, at time of booking to receive discount. Whether you are looking for an upscale hotel, an all-inclusive resort or something more costeffective, we have the right hotel for you ... and at the right price. Call to reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®. Advance reservations required through phone number above; cannot be redeemed at individual hotels.

Wellness

Beltone Hearing Care 888-418-6763

Local Hospitality www.narfe.org/travel

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!

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

Wyndham Hotel Group 877-670-7088 NARFE members receive up to 20% off the “Best Available Rate” at par-

Beltone has been helping the world hear better for 75 years. NARFE members receive 25% off, and those with Blue Cross Blue Shield Service Benefit Plan insurance coverage may be eligible for two Beltone True 3™ hearing aids for ZERO out-of-pocket.

Life Line Screening 800-324-9906 www.lifelinescreening.com/ NARFE Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-ofthe-art ultrasound technology in your neighborhood. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website.

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

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The Way We Worked

Over the limit?

Off the road!

This 1972 photo shows a Department of Transportation (DOT) employee simulating a scene where a motorist suspected of drunk driving is administered an on-thescene test to determine the alcohol level in his blood.

Today, DOT continues its commitment to prevent drunk driving. Working with the Automotive Coalition for Traffic Safety, it has devised a system that will detect, instantly and accurately, if a driver is above the legal alcohol limit and will prevent the vehicle from moving.

Photo courtesy of Meagan Frenzer, National Archives History Office, Records of the Department of Transportation, 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.

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Did you know?

In 2013, 10,076 people were killed in alcohol-impaired driving crashes, an average of one alcohol-impaired driving fatality every 52 minutes, according to DOT’s National Highway Traffic Safety Administration (NHTSA).

Although alcohol-impaired driving fatalities have declined by 23 percent over the past 10 years, NHTSA continues an aggressive anti-drunk driving communications campaign.

Control what you can.

Insure what you can’t.

Insurance products designed for NARFE members:

• Accidental Death & Dismemberment

Insurance Plan1 (AD&D)

• Cancer Insurance Plan2

No matter what stage of life you’re in, or how well you have planned, events can happen that are simply beyond your control.

• Group Enhanced Dental

Insurance Plan3

Whether you’re providing life insurance for loved ones, protecting your family’s health, securing your retirement, or purchasing coverage for a four-legged friend, NARFE has designed an insurance program that can help provide financial protection against the unexpected.

The NARFE Insurance Services-sponsored program includes a full spectrum of products that can help you protect yourself and your loved ones at highly competitive group rates available to members like you.

• Hospital Income and Short Term

Recovery Insurance Plan1

• Hospital Income Insurance Plan1 • Medicare Supplement4 • Senior Age Whole Life • Term Life Insurance Plan1 • Veterinary Pet Insurance® (VPI®)5

Learn more* about purchasing new coverage or complementing an existing plan with the NARFE Insurance Services-sponsored program by calling 1-800-233-5764 or visiting www.narfeinsurance.com Request Number 70366-1-1-1 Hearing-impaired or voice-impaired members may call the Relay Line at 1-800-855-2881.

This program is administered by Mercer Consumer, a service of Mercer Health & Benefits Administration LLC. 1 Underwritten by Hartford Life and Accident Insurance Company and Hartford Life Insurance Company, Hartford, CT 06089 2 Underwritten by Transamerica Premier Life Insurance Company, 4333 Edgewood Road NE, Cedar Rapids, IA 52499 3 Underwritten by The United States Life Insurance Company in the City of New York.

4 Medicare Supplement is underwritten by Transamerica Life Insurance Company, Cedar Rapids, IA 52499; For NY residents, Transamerica Financial Life Insurance Company, Harrison, NY 5 Underwritten by Veterinary Pet Insurance Co. (CA), Brea, CA, and National Casualty Co. (Nat’l), Madison, WI Coverages may vary and may not be available in all states. *Information includes costs, exclusions, limitations, reduction in benefits, and terms of coverage

AR Ins. Lic. #100102691 • CA Ins. Lic. #0G39709 TX Ins. Lic. #1850385 • MN Ins. Lic. #40291395 OK Ins. Lic. #100100336 In CA d/b/a Mercer Health & Benefits Insurance Services AG-11302 1302075

70366 (11/15) Copyright 2015 Mercer LLC. All rights reserved.

Indigo

Black

Warm polyester fleece lines these rugged cotton jeans, trapping body heat so you stay warm! Fit-Forever® waist has 4 extra inches of “invisible” stretch, so no more digging or pinching.

Tailored with post button closure, & five pockets.

Machine-care. Order now!

Medium Blue

Haband #1 Bargain Place, Jessup, PA 18434-1834 Card # _____________________________________Exp.: ___ /____ Mr. Mrs. Ms.______________________________________________ Address______________________________________Apt. # ______ City & State__________________________________Zip _________ Phone ___________________________________________________ Email ___________________________________________________

Light Blue

I enclose $________ purchase price, and only $6.99 shipping & handling for my entire order. Please add applicable state & local sales tax for the following states:

Imported AZ, GA, MA, NJ, PA, WI, & WV.

15 Ø1 5A Ø8

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WHAT WHAT HOW 75C–Ø4816 WAIST? INSEAM? MANY?

INDIGO BLACK MEDIUM BLUE LIGHT BLUE

Waist Sizes: 32 34 36 38 40 42 44 *Big Men (just $5 more each): 46 48 50 Inseams: XS(25-26) S(27-28) M(29-30) L(31-32)

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

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