December 2012 NARFE Magazine by NARFE

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For Active and Retired Federal Employees

RETIREMENT LIFE

DECEMBER 2012, Volume 88, Number 12

LEGISLATIVE REPORT 8 10

Federal Annuitants Will Get 1.7 Percent COLA Training Conference Sessions Address Social Media, Best Practices

“America Counts on Us” Campaign Continues in Post-Election Mode

12 14 16

Federal-Private Pay Gap Widens

NARFE Legislation Tracker Civics 101: New Congress, New Meetings

Cover design by Jim Richards

COLUMNS 6 Message From the National President

22 Managing Money 26 Live Well 28 Alzheimer’s Update

SPECIAL SECTIONS

COVER STORY

38 2012 Open Season

Keep in Touch. As Congress convenes a lameduck session in which much-delayed policy decisions may be made, it is more important than ever that NARFE members contact their legislators.

56 NARFE Scholarship

Report – Plan Changes, Prescription Drug Guide Winners

NARFE Resources

DEPARTMENTS 30 54 59 62

Questions & Answers NARFE News Out & About For the Record: TSP Investments ‘Like’ us on Facebook (NARFE National Headquarters)

visit us online at www.narfe.org

NARFE-PAC Coupon . . . . . . . .15 Alzheimer’s Coupon . . . . . . . . .28 Silver Circle Coupon . . . . . . . . .54 MembershipApplication . . . . . .57 DuesWithholding Application . .58 NARFE Member Perks . . . . . . .60

NATIONAL OFFICERS

Here’s How to Contact NARFE ...

JOSEPH A. BEAUDOIN, President; natpres@narfe.org PAUL H. CAREW, Vice President; natvp@narfe.org ELAINE C. HUGHES, Secretary; natsec@narfe.org RICHARD G. THISSEN, Treasurer; nattreas@narfe.org

If you want to: • Join NARFE Call (toll-free):

800-627-3394 or 800-456-8410 Or go to: www.narfe.org

If you want to: • Change your address • Check your membership status • Find out dues owed • Provide a death notification Call (toll-free):

800-456-8410 Email:

memberrecords@narfe.org If you want to: • Add your email address to your record (to receive GEMS email messages, the Legislative Hotline and NARFE NewsWatch): Call (toll-free):

800-456-8410 Email:

memberrecords@narfe.org

REGIONAL VICE PRESIDENTS REGION I Arthur Pike (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 207-764-4468 Email: artpike1937@aol.com REGION II Evelyn Kirby (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-604-1141 Email: ekirby@atlanticbb.net REGION III Donald Stewart (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) Tel: 305-442-6388 Email: dejs33149@aol.com REGION IV Paul E. Johnson (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 812-306-5137 Email: pejohnson@tds.net REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 620-241-1131 Email: ek617@att.net

REGION VI Jerome S. Smith (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-534-5849 Email: retiredjer@aol.com REGION VII Frank Impinna (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 303-482-1747 Email: impinna@gmail.com REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) Tel: 707-644-7565 Email: hlz17@aol.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) Tel: 360-692-9741 Email: lannyjean@comcast.net REGION X William F. Martin (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 540-872-3345 Email: narfe2065@hughes.net

E-mail: memberrecords@narfeorg

If you want to:

• Hear the Legislative Hotline Call (toll-free):

877-217-8234 If you want to: • Get materials to recruit members: Call (toll-free):

800-627-3394 Email:

rr@narfe.org

For any other NARFE matter: Call NARFE Headquarters

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

NARFE MAGAZINE Volume 88,Number 12 Editor, Margaret M. Carter Assistant Editor, Donna J. St. John Editorial Administrator, Toni Vallario Graphic Designer, Beth Bedard Contributing Designers, Charlene Gridley, Jim Richards Editorial Board: Joseph A. Beaudoin, Paul H. Carew, Elaine C. Hughes, Richard G. Thissen Editorial Office: NARFE, Attn: NARFE magazine, 606 North Washington St., Alexandria, VA 22314-1914; Phone: 703-838-7760; Fax: 703-838-7781; Email: rl@narfe.org Advertising Sales: Warren Berger, Media People Inc., 122 East 42nd Street, Suite 725, New York, NY 10168; 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 866-504-7300 or go to www.nfbnewsline.org. On Tape: Issues of NARFE magazine are also available on cassette through the National Library Service for the Blind and Physically Handicapped. To find out about availability in your area, call 800-424-8567 and ask for the Reference Section. 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.

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. Non-member subscription rate $45. Postmaster: Send address change to: NARFE Attn:Member Records,NARFE 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 © 2012, 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.

DECEMBER 2012 | NARFE

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A Message From the National President

ATime to Be Thankful

s you receive this issue of NARFE magazine, Thanksgiving will be just around the corner. This is the time of year when we tend to take stock of all that we have to be thankful for – our families, our friends, our health. I hope that you will allow me to look at our blessings from a NARFE standpoint as well. First of all, I am thankful for NARFE members, whose generosity is boundless. Through your donations and fundraising activities, we have nearly reached our goal of raising $10 million for the NARFE-Alzheimer’s Research Fund. We also have provided more than $1 million in disaster relief grants and scholarships (since 1995), and distributed $600,000 this year to congressional candidates who support our legislative agenda through NARFE-PAC. Your contributions this year in response to our Note Cards and Calendar Program, as well as your Silver Circle donations, help us continue to do what we do best: protect your earned benefits. I am thankful for NARFE members whose hard work resulted in more than half a million emails, 66,000 handwritten letters and 30,000 phone calls to elected officials through the “Protect America’s Heartbeat” campaign. I also am thankful for those NARFE members who attended the National Convention in Reno-Sparks, NV, coming together to vote their approval of the new Bylaws and Standing Rules, which will guide us in the difficult years ahead.

Your National Executive Board will have already met by the time you receive this issue of NARFE magazine. I am very optimistic that this new board, along with our members, will continue working together to enhance NARFE and spread NARFE’s name within the federal community. This is what I mean when I say, “Working together, we can make a difference.” The fact that federal retirees have not lost any of their earned benefits over the last year is something for which I’m especially thankful. And while active federal employees have seen their wages frozen, we know that it could have been much worse as we saw federal employees and retirees become easy targets while Congress proposed cuts to balance the budget and reduce the deficit. Now that the presidential and congressional elections are over, we will be looking closely at who was elected or re-elected – a NARFE friend or a NARFE foe. But regardless of the makeup of the 113th Congress, we at NARFE Headquarters will continue to fight to ensure that the federal community is not singled out for unfair cuts in benefits. Federation and chapter members also should make contact with their newly elected legislators to congratulate them and let them know that we are willing to work with them for the good of our nation. We all have a lot at stake in the 113th Congress, and we must continue to work together to defend what is rightfully ours. Again, let me say how thankful I am for your loyalty and dedication to NARFE, and for your continued support.

REGARDLESS of the makeup of the113th Congress,we will continue to fight to ensure that the federal community is not unfairly singled out.

Joseph A. Beaudoin natpres@narfe.org

DECEMBER 2012 | NARFE

LEGISLATIVE REPORT

Federal AnnuitantsWill Get NARFE Opposes 1.7 Percent COLA Changing Measure

etirees under the Civil Service Retirement System

To C-CPI-U

(CSRS) and the Federal Employees Retirement System (FERS) will receive a 1.7 percent increase to their annuities in January 2013, the same cost-of-

living adjustment (COLA) Social Security beneficiaries will receive.

“We are pleased to hear that retirees will receive some relief from the rising costs of everyday goods,” said NARFE President Joseph A. Beaudoin. “NARFE continues to support strong COLAs based on fair assessments of increases in consumer prices, including medical costs, to keep federal annuities in line with inflation.” Under current law, COLAs for federal retirement annuities, as well as for military retiree pensions and Social Security payments, are determined in reference to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is calculated by economists and statisticians with the Bureau of Labor Statistics. The CPIW is the index used to measure increases in the prices of consumer goods throughout the economy. It includes prices on all consumer goods, including food and beverages, housing, clothing, transportation, medical care, recreation, education, communication and more. To trigger a COLA for 2013, the average CPI-W for the months of July,

August and September 2012 needed to rise above the 2011 average for those same months. On October 16, the Labor Department’s Bureau of Labor Statistics announced the September CPI-W was 228.184. This figure reflects an increase of 0.5 percent from the August index of 227.056. The 2013 COLA of 1.7 percent reflects the percentage difference between last year’s thirdquarter average base index of 223.233 and this year’s third-quarter average index of 226.936, computed by averaging July’s 225.568, August’s 227.056 and September’s 228.184 indexes. “This is welcome news for retirees who have seen the cost of living continue to increase over the past year,” continued Beaudoin. “As Congress debates ways to avoid the ‘fiscal cliff,’ NARFE is prepared to oppose any changes to the COLA formula that would have an adverse effect on retirees.” NARFE opposes a recommendation made in 2010 by the National Commission on Fiscal Responsibility and

■ Traditionally, when a new

Congress convenes the same year as a presidential inauguration, Congress will gavel in for a day the first week in January and then adjourn until after the inauguration. The date for the 113th Congress had not been announced at press time. ■ January 20, 2013, falls on a

Sunday. By tradition, the president will take the oath of office in a small ceremony on Sunday, and the public inauguration will be held on Monday, January 21, which, in 2013, is the Martin Luther King Jr. Holiday. President Clinton’s second inauguration, in 1997, was the first to fall on the holiday. Only two other times has January 20 fallen on a Sunday since the inauguration was moved to January.

LEGISLATIVE HOTLINE Toll-free! (24 Hours): 877-217-8234 Legislative Action Center: www.narfe.org DECEMBER 2012 | NARFE

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Legislative Report Reform (also known as the Simpson-Bowles Fiscal Commission) to switch from the current method of calculating COLAs for Social Security (and other indexed benefits) to a new method that uses the Chained-CPI-U (C-CPI-U). The C-CPI-U would result in reduced COLAs for Social Security benefits, and federal and military retirement annuities, by as much as 4 percent after 10 years, and by more after that. In August, NARFE’s membership reaffirmed its commitment to protecting and improving COLAs for federal annuities when it adopted NARFE’s Legislative Program for the 113th Congress.

FECA COLA SET BY DIFFERENT FORMULA Determined by a different statutorily set methodology, 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 (rather than the

STORY HIGHLIGHTS ■ Federal annuitants under both the Civil Service

Retirement System and the Federal Employees Retirement System will receive a 1.7 percent costof-living adjustment (COLA) to their annuities in 2013. ■ The COLA is based on increases in the CPI-W. ■ NARFE opposes any changes in the formula that would have an adverse effect on retirees.

change from the highest previous third-quarter average). Looking ahead to next year, the September 2012 CPI-W figure (228.184) is 2.7 percent higher than the December 2011 CPI-W figure (222.166), which is the reference figure for determining the 2013 COLA for recipients under FECA.

By John Hatton, Legislative Representative

Training Conference Sessions Address Social Media, Best Practices

lanners have announced that one of the sessions at the 2013 NARFE Legislative Training Conference will include how to use social media and the Internet in grass-roots advocacy. The conference will be held March 9-12, 2013, at the Renaissance Arlington Capital View Hotel in Arlington, VA. The first two days of the conference will feature general sessions with speakers and multiple training sessions. Also new this year will be a “Best Practices” session for chapter and federation leaders to share their own successes and failures in getting members to participate in advocacy, scheduling meetings with members of Congress and other issues. The biennial conference provides NARFE members the opportunity to learn more about the policy issues facing the federal community while providing resources on how to break through the “noise” and talk with their members of Congress. NARFE members will be able to return home and conduct advocacy training and grass-roots organizing for their home chapters and federations. On Tuesday, March 12, NARFE members will have the

opportunity to meet with members of Congress and their staff on Capitol Hill. Following the success in 2011, the day will begin with a rally on the Hill. New for this conference, NARFE’s Legislative Department staff will help schedule meetings with congressional offices. They also will work with NARFE legislative activists who are not traveling to Washington, DC, so they can do their own legislative grassroots outreach to correspond with the work being done in Washington. All NARFE members are invited to attend, but chapter and federation leaders and legislative activists who have never attended before are particularly urged to participate. Federation 10 Percent Funds should be used to defray some or all of the costs of aspiring and potential leaders. One person per congressional district would be ideal, especially congressional district liaisons who already are invested in organizing by congressional district. More details and online registration are available on NARFE’s website, www.narfe.org. Click on the 2013 Legislative Training Conference logo on the Main Home Page.

By Sarah Holstine, Legislative Specialist DECEMBER 2012 | NARFE

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Legislative Report

‘America Counts on Us’Campaign Continues in Post-Election Mode

n the weeks leading up to the November elections, the Federal-Postal Coalition’s “America Counts on Us” campaign continued to generate news and have an impact across the country. America Counts on Us is a campaign sponsored by NARFE and other national organizations representing America’s nearly five million active and retired federal employees. The nonpartisan campaign aims to raise awareness of the vital services provided by federal employees as well as the people who provide them. Prior to the November elections, activities to accomplish these goals included shaping public opinion through meetings with select members of Congress and candidates, creating a presence at town hall meetings and candidate forums in key electoral districts, and generating media coverage that introduced more Americans to the face of federal and postal workers and retirees. To dramatize the fact that federal employees live and work throughout the country, America Counts on Us volunteers delivered large posters with state and district maps,

Pay Gap Widens

ederal employees are paid, on average, about 35 percent less than comparable private-sector workers, according to the Federal Salary Council, using information from the Bureau of Labor Statistics. This is an increase over the 26 percent difference reported in 2011. “The widening pay gap is not acceptable,” said NARFE President Joseph A. Beaudoin. “Our nation is fortunate to have talented and devoted employees protecting our families from natural disasters, infectious diseases and terrorist attacks. When it comes to the important jobs these men and women do for America, we can't afford a second-rate workforce. Yet that's what is in store for us if we continue to devalue our federal workers. After enduring a two-year pay freeze that has contributed $60 billion toward balancing America's budget, it comes as no surprise to hear that the pay of federal workers continues to lag behind their peers in the private sector.”

STORY HIGHLIGHTS ■ “America Counts on Us” is a campaign by the

Federal-Postal Coalition, including NARFE. ■ The campaign continues until the end of 2012,

informing legislators of the number of federal employees and retirees in their states and districts, and the important work they do.

and the number of federal and postal employees and retirees in each state and district. Following the elections, the America Counts on Us campaign continues as Congress debates ways to avoid falling off the “fiscal cliff.” Federal and postal employees and retirees will remain a target for deficit cutters, and the campaign will inform members of Congress of the numbers of federal employees and retirees in their state or district, and the vital work they do. The campaign is slated to run until the end of 2012. In July and August, Copies of the poster above were delivthe campaign held suc- ered to the campaign offices of former cessful events in Vir- Virginia governors Tim Kaine and George ginia, Maryland and Allen, who were running for the Senate. Similar posters were delivered to candiMontana. In October, dates in five other states and two conthe campaign congressional districts. ducted two “days of action” in select states and congressional districts throughout the country. On the first day of action, Coalition members dropped off materials to candidates for the U.S. Senate in six states and to candidates in two congressional districts for the House of Representatives. On the second day of action, phone calls were made to these same candidates, describing the important work of active and retired federal and postal employees and their contributions toward reducing the federal deficit, and urging them not to single out federal and postal employees and retirees for further cuts in pay and benefits.

By Jessica Klement, Communications and Legislative Representative DECEMBER 2012 | NARFE

How to Outsmart a Millionaire Only the “Robin Hood of Watchmakers” can steal the spotlight from a luxury legend for under $200! wasn’t looking for trouble. I sat in a café, sipping my espresso and enjoying the quiet. Then it got noisy. Mr. Bigshot rolled up in a roaring high-performance Italian sports car, dropping attitude like his $22,000 watch made it okay for him to be rude. That’s when I decided to roll up my sleeves and teach him a lesson.

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The NARFE LEGISLATION TRACKER is your monthly guide to the legislation that NARFE is keeping an eye on. Check each issue for updates.

NARFE LegislationTracker ISSUE

Bill Number / Name / Sponsor

What Bill Would Do

H.R. 3813: Securing Annuities for Requires federal employees to pay RETIREMENT 1.5% more toward their retirement, CONTRIBUTIONS/ Federal Employees Act / Rep. requires new federal employees to Dennis A. Ross, R-FL CALCULATION contribute 4% to their retirement, bases retirement calculations on the highest five years of service instead of the current high three, and eliminates the FERS Annuity Supplement

FEDERAL PAY FREEZE

PHASED RETIREMENT

Approved by Committee on Oversight and Government Reform 2/7/2012 (Likely to be considered by full House)

H.Con Res. 112: Establishing the Requires federal employees to pay 5% more toward their retirement Budget for the United States Government for Fiscal Year 2013 / Rep. Paul D. Ryan, R-WI

Passed by House 3/23/2012 Failed in Senate 5/16/2012

H.R. 5652: Sequester Replacement Reconciliation Act / Rep. Paul D. Ryan, R-WI

Requires federal employees to pay 5% more toward their retirement

Passed by House 5/10/2012

H.R. 3835: To Extend the Pay Limitation for Members of Congress and Federal Employees / Rep. Sean P. Duffy, R-WI

Extends the federal pay freeze for one more year (until Dec. 31, 2013)

Passed by House 2/1/2012 (Likely to be part of deficitreduction talks)

H.J. Res. 117: Continuing Appropriations Resolution, 2013

Extends the federal pay freeze until March 28, 2013

Signed into law 9/28/12

H.R. 4363: Federal Employee Phased Retirement Act / Rep. Darrell Issa, R-CA

Allows federal employees to phase into retirement by working part time and collecting an annuity

S. 1813: Moving Ahead for Progress in the 21st Century / Sen. Barbara Boxer, D-CA

Allows federal employees to phase into retirement by working part time and collecting an annuity

Passed as part of highway bill and student loan interest rate extension compromise Signed into law (P.L. 112-141) 7/6/2012

CHANGES TO THE S. 1789: 21st Century Postal Service Act / Sen. Joseph I. FEDERAL Lieberman, I-CT EMPLOYEESâ&#x20AC;&#x2122; COMPENSATION ACT (FECA) H.R. 2465 : Federal Workersâ&#x20AC;&#x2122; Compensation Modernization and Improvement Act / Rep. John Kline, R-MN

Latest Congressional Action/s

Passed by Senate 4/25/2012 Reduces benefits by 25% at retirement age for federal workers disabled by a work-related injury or illness; eliminates 8.33% augmented compensation for dependents Streamlines claims process, ensures injured workers receive adequate compensation, improves program efficiency and modernizes benefits

Passed by House 11/29/2011

DECEMBER 2012 | NARFE

NARFE LegislationTracker ISSUE

What Bill Would Do

Bill Number / Name / Sponsor

Latest Congressional Action/s

WORKFORCE REDUCTIONS

Various bills (H.R. 235, H.R. 408/S. 178, H.R. 657, S. 1476, H.R. 2114, H.R. 3029/ S. 1611, H.R. 3662/S. 2065)

Decreases the size of the federal workforce by various percentages (usually 5-15%)

Referred to various committees (Likely to be part of deficitreduction and sequestration talks)

REPEAL OF GPO AND WEP

H.R. 1332: Social Security Fairness Act / Rep. Howard P. “Buck” McKeon, R-CA

Repeals the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP)

Referred to Subcommittee on Social Security 4/7/2011

S. 2010: Social Security Fairness Act / Sen. John Kerry, D-MA

POLITICAL ACTIVITIES

POSTAL REFORM

H.R. 4152 Hatch Act Modernization Act / Rep. Elijah E. Cummings, D-MD

Referred to Committee on Finance 12/16/2011 (Unlikely to be considered) Referred to Committee on Oversight and Government Reform 3/7/2012

S. 2170 Hatch Act Modernization Act / Sen. Daniel K. Akaka, D-HI

Eliminates the prohibition against state and local employees seeking partisan elective federal office and revises penalties for Hatch Act violations to allow penalties other than termination of employment

H.R. 2309 Postal Reform Act of 2011 / Rep. Darrell Issa, R-CA

Imposes receivership; cuts small post offices, delivery days and service

Passed by Oversight and Govt. Reform Com. 1/17/12

S. 1789 21st Century Postal Service Act/ Sen. Joe Lieberman, I-CT

Reduces funding requirements, allows Passed by Senate 4/25/12 business practice changes, cuts workers’ comp for federal employees

NARFE-PAC Contribution Form I would like to make a monthly credit card contribution to NARFE-PAC of:

$10/month $25/month

Monthly contributions qualify you to receive a NARFE-PAC Sustainer lapel pin and the red, white and blue NARFE umbrella.

Other: ________/month (minimum of $10) -orI would like to make a one-time contribution of: $100 (qualifies for Gold 2011-2012 NARFE-PAC lapel pin and NARFE umbrella) $50 (qualifies for Silver 2011-2012 NARFE-PAC lapel pin) $20 (qualifies for Basic 2011-2012 NARFE-PAC lapel pin, pictured here) Other: ________

I do not want to receive any gifts for my contribution marked above. 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 nonpartisan political action fund. NARFE-PAC contributions are not deductible for federal income tax purposes.

NARFE | DECEMBER 2012

Approved by the Homeland Security and Governmental Affairs Committee 6/27/2012

Payment Information Name: _____________________________________________ Member ID# (if available): ___________________________ Address: ___________________________________________ __________________________________________________

Check or money order enclosed -or-

Credit Card (below; required for monthly contribution)

Card Type: MasterCard Visa Discover AMEX Card #: ____________________________________________ Expiration Date: ____ / ____ Name on Card: _____________________________________ Signature:__________________________________________ Date: __________________ Please send check, money order or credit card information to: Attn: Budget & Finance / NARFE / 606 N. Washington St. Alexandria, VA 22314-1914

Legislative Report CIVICS 101:

THE INFORMED CITIZEN

New Congress,New Meetings

eeting with a politician, even one you voted for, may be the furthest thing from your mind. But that’s exactly what NARFE members need to be doing, and they need to be doing it now. At press time, plans call for a post-election session of the 112th Congress to begin on November 13. Facing what is being called a “fiscal cliff,” the re-elected members of Congress, as well as the lame ducks, will determine whether the House and Senate can compromise on the multitude of issues before them. This session could last well into December.

CALM BEFORE THE “CLIFF” In September, before abandoning Capitol Hill to campaign full time, Congress passed a six-month Continuing Resolution, H.J. Res. 117. This legislation, in lieu of the 12 regular appropriations bills, provides funding for all government programs through March 27, 2013, and is set at levels agreed to in last year’s Budget Control Act (P.L. 11225). Signed by President Obama, H.J. Res. 117 extends the two-year federal pay freeze through March 27.

WORLD-CLASS BRINKSMANSHIP Having done the bare minimum to avoid a showdown over a federal government shutdown, the postponed policy choices of divided government still must be addressed. The most urgent issue, the fiscal cliff, is what would happen to a weak economic recovery if scheduled spending cuts (sequestration) and higher individual taxes take effect in January. However, there are other issues that must be addressed, including an overhaul of the U.S. Postal Service and the expiration of reimbursements to Medicare providers.

STORY HIGHLIGHTS ■ The election is over, with many new members of

Congress. Meetings are imperative. ■ The Continuing Resolution prolongs the federal

pay freeze. ■ Congress is on the brink of a “fiscal cliff.” ■ Chapter, district and federation officers must

organize meetings. NARFE Legislative Department staffers are available to assist.

ucated about issues of importance to federal employees and retirees. Most freshmen lawmakers will have had little exposure to civil service issues and will be eager for information, especially a list of NARFE chapters and leaders in their districts. A copy of this issue of NARFE magazine and the preceding two issues covering Federal Benefits Open Season also would help educate them.

CHAPTER MEETINGS, FEDERATION CONVENTIONS NARFE chapter, district and federation officers should always harness monthly or special multichapter meetings by extending open-ended invitations to elected officials to attend and take questions about NARFE issues. Persistence, flexible scheduling and bolstered attendance are often crucial factors. Many chapters use “robo calls” to increase participation in NARFE events. Most important, federation conventions must be orchestrated to obtain maximum political advantage. Conventions gather NARFE’s best from an entire state and are ideal gatherings to advance NARFE interests.

CONNECTING WITH CONGRESS PLANNING AHEAD FOR 2013 The 113th Congress (2013-2014) will be sworn in early in January. There will be at least 50 new representatives and 11 new senators. Many more – perhaps 30 – are likely. All 441 House members and a third of the Senate will begin planning their 2014 re-election campaigns. Our task now, as many are tuning out politics, is to engage NARFE members to help distinguish NARFE from thousands of other organizations lobbying Capitol Hill. Newly elected members of Congress will need to be ed-

NARFE Legislative Department staffers are eager to help in any way (send an email to cfarrell@narfe.org or call 571483-1265). Staff can help any NARFE member seeking to meet with his or her representative and senators. Recently, NARFE legislative officers were offered congressional staff listings for their congressional delegation. These listings show each staffer by location and title, and are available without any copyright restrictions. A “Congressional Staff Request” can be made by electronic or postal mail.

By Christopher Farrell, Legislative Representative DECEMBER 2012 | NARFE

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Keep In Touch

CONGRESSIONAL CONTACTS CRUCIAL As Threats Continue Now, more than ever, members of Congress need to be reminded that their federal employee and retiree constituents are working hard to “Protect America’s Heartbeat.” While the 113th Congress won’t convene until January, a post-election lame-duck session was scheduled to convene November 13. It is important for NARFE members to contact their members of Congress, who will be casting crucial votes before the end of the year. As this issue reaches your mailbox, NARFE will have just concluded its third “National Call Congress Day” of the year. The

by Jessica Klement, Communications and Legislative Representative

NARFE | DECEMBER 2012

special call-in day was scheduled for November 15. Among the issues facing lawmakers in the lame-duck session are: • Annual deficits in excess of $1 trillion; • A $16-plus trillion public debt and a needed increase in the debt limit; • An extension of the farm bill, along with funding for crop price supports and nutrition benefits; • An extension of payment rates for providers of Medicare services (which would otherwise be cut by more than 20 percent beginning in January 2013); • The expiration of several tax cuts put in place over the last 12 years; and • The looming $1.2 trillion in cuts to federal programs through sequestration. Under this process, more than $100 billion in across-the-board cuts in defense and domestic programs will happen automatically on January 2, 2013. All these issues mean one thing for NARFE members: Your benefits are at stake as Congress looks for ways to prevent falling off the “fiscal cliff.” NARFE members should use this time to contact members of their congressional delegation (one representative and two senators) and ask them to leave federal employees and retirees out of the discussion when they address the important areas of public policy that were unfinished when they left Washington to campaign full time. The Protect America’s Heartbeat website (www.narfe.org/heartbeat), as well as the NARFE Legislative Action Center (www.capwiz.com/narfe/home/), have an updated letter for members to send during the lame-duck session of Congress. Additionally, members should be on the lookout for Legislative Action Alerts, updated information in the

866-220-0044 866-220-0044 866-220-0044 866-220-0044 866-220-0044 866-220-0044 866-220-0044 Your Contacts Count In Advocacy Competition ARFE’s “Advocacy in Action” competition runs through the end of the year. The competition encourages and rewards grass-roots advocacy by NARFE members, chapters and federations. Varying points are assigned for such things as meeting with a member of Congress or staff, sending email messages, or calling a member of Congress and delivering a NARFE message.The lame-duck session of Congress provides NARFE members with a chance to not only voice their opinions effectively but also help their federations accumulate points. The winning federation receives a free registration to the NARFE Legislative Conference in March.

weekly NARFE Legislative Hotlines and email messages from NARFE Headquarters. The toll-free number to use to call your members of Congress on Capitol Hill is 866-220-0044.

FEDS HAVE CONTRIBUTED TO DEFICIT REDUCTION The federal workforce has already sacrificed $75 billion in the ongoing budget process. The two-year federal employee pay freeze contributed $60 billion; the requirement that new federal employees pay more toward their retirement accounted for the remaining $15 billion. No other group of Americans has been asked to sacrifice in this way. NARFE members should ask members of their congressional delegation if there is a plan to survive the fiscal storm and remind them that federal employees have already done their fair share of sacrifices in the name of deficit reduction. NARFE is calling on its membership to educate lawmakers, both new and returning, on the merits of a system that provides fair and equitable pay, benefits, and retirement for federal employees and retirees.

PROTECT AMERICA’S HEARTBEAT UPDATE Meanwhile, NARFE’s Protect America’s Heartbeat (PAH) campaign continues to encourage favorable publicity for federal employees and retirees. Throughout the summer, NARFE delivered the pro-federal employee and retiree messages of the Protect America’s Heartbeat campaign to an audience of millions through the media. NARFE spokespeople were quoted in top news outlets, including USA Today, The Washington Post, Los Angeles Times and The Baltimore Sun, as well as in articles in federal trade publications such as Government Executive and Federal Times. The PAH campaign averaged four press releases a month on the major issues facing retired and active federal workers, and has helped solidify NARFE as a “go-to” organization for reporters who want to hear the perspective of America’s retired and active federal employees. NARFE will continue to fulfill this role, and stand up for federal workers and retirees in the press and on Capitol Hill. ■ DECEMBER 2012 | NARFE

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Managing Money

FEGLI Revisited By Mark A. Keen, CFP®

n the October issue of NARFE magazine, I wrote an article comparing the Federal Employees’ Group Life Insurance (FEGLI) Option B coverage to individual term insurance and concluded that, in many circumstances, purchasing an individual term insurance policy is less costly and the better option. The fact is, everyone’s life insurance needs are different. But in many cases, the need for life insurance is only temporary, which was the rationale for comparing FEGLI to term insurance. But what if a federal employee wants to carry life insurance until the day he or she dies? A federal employee could elect the no-reduction option and continue FEGLI coverage for life. But is this the right choice, or are there other, more cost-effective options? Let’s compare options and find out. First, it’s important to note that there are several types of permanent life insurance policies to choose from. For this article, we’ll use a type of life insurance called universal life (UL), which can be structured so that no cash value accumulates and can be guaranteed to remain in force (as long as the premiums are paid), up to at least age 100. Let’s first compare the cost of FEGLI and a UL policy for a 55-year-old male who wants to carry a $250,000 death benefit. The FEGLI premium for the 55year-old male starts out at $1,494 per year, while the UL premium (assuming a standard health rating) is $3,550 per year. As you can see, the FEGLI premium starts out less expensive than the UL insurance policy. In fact, over the

course of the first 10 years, the total cumulative cost of the FEGLI insurance is $24,375, while the total cost of the UL policy is $35,500. So far, FEGLI is less expensive by $11,125. However, because the FEGLI premiums increase every five years, and the UL premium remains level, the FEGLI advantage disappears over time. In this case, the annual cost of FEGLI becomes more expensive when the FEGLI premium increases to $4,029 at age 65. From that point on, the annual FEGLI premium becomes increasingly more expensive relative to the UL policy. For example, at age 70, the FEGLI premium increases to $7,410 per year; at age 75, the premium increases to $11,700 per year; and at age 80, the FEGLI premium increases to $15,600 per year, where it will remain level from that point on. Now, let’s compare the total cost of FEGLI and the UL policy, assuming the federal employee dies at a specific age, say, age 85. In this scenario, the 55year-old will pay a total of $233,670 for the FEGLI coverage; but if he goes with the UL policy instead, he will only pay a total of $110,050 – a savings of $123,000! Obviously, an 85-year life expectancy is purely hypothetical and is used only to provide some indication of the potential savings one can achieve by purchasing a UL policy. Ultimately, one’s real age at death will determine

whether FEGLI or the UL policy was less expensive. This is where it’s also helpful to know the break-even age, which is the point when the total premium paid for FEGLI is the same as the total premium paid for the UL policy. In the case of the 55-year-old male, the break-even age is approximately age 71. By knowing the break-even age, we now know that, if the federal employee dies prior to age 71, he would pay less in premiums for the FEGLI coverage; but if he lives beyond age 71, he would pay less in premiums for the UL policy. As pointed out in my October article, there is no difference in FEGLI premiums for men and women who are the same age. On the other hand, women pay less than their male counterparts for individual life insurance policies because their longer life expectancies are factored in. For example, a 55-year-old female will pay $2,747 instead of $3,550 for the UL policy. Her FEGLI premium is the same, so she will still pay a total of $233,670 in FEGLI premiums if she lives to age 85; but the total cost of the UL policy drops to $85,157, for a savings of more than $148,000. Older federal employees have the potential to save as well. Take a 65year-old male, for example, whose UL premium will run $6,231 per year. Once again, this is initially more expensive than the FEGLI premium,

COMPARE THE premiums for FEGLI and a universal life insurance policy to determine which option is best for you.

DECEMBER 2012 | NARFE

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which only runs $4,029 for a 65-yearold. However, just as with the previous examples, the annual cost of FEGLI becomes more expensive. In this case, the annual cost of FEGLI becomes more expensive at age 70, and the break-even age of the two insurance plans is age 75. Assuming a life expectancy of 85, the 65-year-old male will pay a total of $209,295 in FEGLI premiums, whereas the payments for the UL policy will only total $130,851 at age 85 – a savings of more than $78,000. Similar to the 55-year-old female, a 65-year-old female can save even more than her male counterparts with a premium of $4,926 per year for a UL policy. The lower UL premium reduced her break-even age to 71. Once again, assuming a life expectancy of age 85, her

total cost for the UL policy is only $103,446, a savings of more than $105,000 over the FEGLI coverage. Everyone’s circumstances will be different. So when deciding which type of insurance will best fit your needs, you have to think about what the purpose of the life insurance is. At that point, you can begin comparing your options to decide which option is the most costeffective for you.

Mark A. Keen, CFP®, is president and owner of Bennett Financial Advisors, 3600 Chain Bridge Rd., 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@tributaryadvisors.com.

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DECEMBER 2012 | NARFE

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Battling Bronchitis By Marilyn S. Radke, M.D.

ronchitis is a common condition with millions of cases occurring every year. It is an inflammation of the bronchial tubes – the airways that carry oxygen-rich air to your lungs and the waste gas (carbon dioxide) out of your lungs. People who have bronchitis often cough up mucus, a slimy substance made by the lining of the bronchial tubes. Bronchitis also may cause a whistling sound when you breathe (wheezing), chest pain, fever and shortness of breath. Bronchitis may be short term (acute) or ongoing (chronic). Acute bronchitis is caused by infections or lung irritants, and lasts from a few days to 10 days. Coughing can last for several weeks after the infection is gone. Acute bronchitis is commonly caused by the same viruses that cause colds and flu, but sometimes it is caused by bacteria. Lung irritants, such as tobacco smoke, worsen its symptoms. Chronic bronchitis is caused mainly by smoking and is a serious, ongoing medical condition. The lining of the bronchial tubes is constantly irritated and inflamed, causing a longterm cough with mucus. The irritated bronchial tubes are easily infected by viruses or bacteria. This causes people who have chronic bronchitis to have periods when symptoms get much worse than usual. During these periods, they also may have acute viral or bacterial bronchitis.

Risk factors for bronchitis include: • Tobacco smoke, including secondhand smoke; • Existing lung disease; • Contact with dust, chemical fumes, vapors and air pollution; • Jobs in coal mining, textile manufacturing, grain handling and livestock farming; • Exposure to a high level of lung irritants from an explosion or fire;

• Low fever. Signs and symptoms of chronic bronchitis include coughing (“smoker’s cough”), wheezing and chest discomfort. The diagnosis of bronchitis involves medical history, physical examination, examination of mucus for bacterial infection and testing of blood oxygen levels using a sensor attached to your fingertip. Your doctor also may recom-

THE MOST important step you can take to prevent bronchitis and to relieve symptoms of chronic bronchitis is not to smoke. • Allergies; • Female gender (chronic bronchitis occurs at twice the rate in women as compared to men); and • Age: ° Infants, children and the elderly (risk for acute bronchitis); and ° Over age 45 (risk for chronic bronchitis). Signs and symptoms of acute bronchitis are: • Sore throat, tiredness, fever, body aches, stuffy or runny nose, vomiting and diarrhea – following cold and flu. • Persistent cough: May last 10 to 20 days and produce clear mucus. Yellow or green mucus may indicate a bacterial infection, and a dry cough may persist for days or weeks after the infection clears. • Breathing problems: wheezing, chest tightness or pain, and shortness of breath (especially with physical activity); and

mend a chest X-ray, lung function tests or blood tests. Symptom relief and easier breathing are the main goals of treating bronchitis. Treatment methods involve: • Reducing lung irritation by quitting smoking and avoiding secondhand smoke, dust, fumes, vapors and air pollution; • Rest, fluids, and aspirin or acetaminophen for fever of acute bronchitis; • Antibiotics for bacterial infection; • Humidifier, steam and inhaled

To Learn More

or more information, write to the National Heart, Lung, and Blood Institute Health Information Center, P.O. Box 30105, Bethesda, MD 20824-0105;or call 301-592-8573 (TTY: 240-629-3255); or visit the website at www.nhlbi.nih.gov.

DECEMBER 2012 | NARFE

Co N nt o ra ct

Finally, a cell phone NEW that’s… a phone

Lo S B ng ou ett er nd er Ba a tte nd ry Li fe

Introducing the all-new Jitterbug® Plus. We’ve made it even better… without making it harder to use.

Marilyn S. Radke, M.D., is board certified in preventive medicine and practices in Atlanta, GA. NARFE | DECEMBER 2012

All my friends have new cell phones. They carry them around with them all day, like mini computers, with little tiny keyboards and hundreds of programs which are supposed to make their life easier. Trouble is… my friends can’t use them. The keypads are too small, the displays are hard to see and the phones are so complicated that my friends end up borrowing my Jitterbug when they need to make a call. I don’t mind… I just got a new phone too… the new Jitterbug Plus. Now I have all the things I loved about my Jitterbug phone along with some great new features that make it even better!

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GreatCall® created the Jitterbug with one thing in mind – to oﬀer people a cell phone that’s easy to see and hear, and is simple to use and aﬀordable. Now, they’ve made the cell phone experience even better with the Jitterbug Plus. It features a lightweight, comfortable design with a backlit keypad and big, legible numbers. There is even a dial tone so you know the phone is ready to use. You can also increase the volume with one touch and the speaker’s been improved so you get great audio quality and can hear every word. The battery has been improved too– it’s one of the longest lasting on the market– so you won’t have to charge it as often. The phone comes to you with your account already set up and is easy to activate.

The rate plans are simple too. Why pay for minutes you’ll never use? There are a variety of aﬀordable plans. Plus, you don’t have to worry about ﬁnding yourself stuck with no minutes– that’s the problem with prepaid phones. Since there is no contract to sign, you are not locked in for years at a time and won’t be subject to early termination fees. Now, when you sign up for our Basic Basic 19 Basic 14 100 DoubleTime Monthly Minutes 50 200 19 plan, you’ll double $19.99 Monthly Rate $14.99 your monthly minutes 24/7 Operator Assistance 24/7 for the same price. FREE 911 Access FREE The U.S.-based customer No add’l charge Long Distance Calls No add’l charge Available in Silver service is knowledgeable FREE Voice Dial FREE (shown) and Red. and helpful and the YES Nationwide Coverage YES 30 days Friendly Return Policy 30 days phone gets service Introducing More minute plans available. anywhere in DoubleTime! virtually Ask your Jitterbug expert for details the continental U.S. Double your Above all, you’ll get one-touch access to a friendly, and helpful GreatCall operator. They can look up numbers, and even dial them for monthly minutes you! They are always there to help you when you need them. for life 1

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medicine for wheezing; • Medicines for inflamed airways and persistent coughing; • Medicines for chronic bronchitis and chronic obstructive pulmonary disease, such as inhaled bronchodilators and steroids (inhaled or pill form); and • Oxygen therapy for chronic bronchitis. The most important step you can take to prevent bronchitis and to relieve symptoms of chronic bronchitis is not to smoke. Additional steps include: • Avoid lung irritants, such as secondhand smoke, dust, fumes, vapors and air pollution; • Wear a mask over your mouth and nose when you use paint, paint remover, varnish or other substances with strong fumes; • Wash your hands often and avoid touching your face to limit exposure to viruses and bacteria; • Avoid people who have colds or the flu; • Consider getting a yearly flu shot and a pneumonia vaccine; • Make healthful food choices and be as physically active as you can; and • Consider pulmonary rehabilitation, a program designed to help relieve ongoing breathing problems. If you have bronchitis and breathe too fast, ask your doctor about “pursed-lip” breathing to keep your airways open longer. In pursed-lip breathing, you breathe in through your nostrils while counting to two and breathe out slowly through pursed lips (as if blowing out a candle) while counting to four or six.

IMPORTANT CONSUMER INFORMATION: DoubleTime offer valid on Basic 19 Plan and applies to new GreatCall customers only. Offer ends 1/1/13. Offer valid until plan is changed or cancelled. All GreatCall phones require a one-time set up fee of $35. Coverage and service are not available everywhere. You will not be able to make 9-1-1 calls when cellular service is not available. Rate plans do not include government taxes or assessment surcharges and are subject to change. No roaming or long distance charges for domestic calls within the U.S. There are no additional fees to call GreatCall’s 24-hour U.S. Based Customer Service. However, for calls to an Operator in which a service is completed, minutes will be deducted from your monthly balance equal to the length of the call and any call connected by the Operator, plus an additional 5 minutes. 1 We will refund the full price of the GreatCall phone if it is returned within 30 days of purchase in like-new condition. We will also refund your first monthly service charge if you have less than 30 minutes of usage. If you have more than 30 minutes of usage, a per minute charge of 35 cents will apply for each minute over 30 minutes. The activation fee and shipping charges are not refundable. Jitterbug and GreatCall are registered trademarks of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics Co., Ltd. Copyright ©2012 Samsung Telecommunications America, LLC. Copyright ©2012 GreatCall, Inc. Copyright ©2011 by firstSTREET for Boomers and Beyond, Inc. All rights reserved.

Alzheimer’s Update

New NARFE-Funded Research By Jane Rodgers

y the time you read this column, we will be very close to achieving our goal of raising $10 million in 2012 for Alzheimer’s research or may even have surpassed it. Through your donations and fundraising activities, you have led us to yet another milestone in NARFE’s efforts to help find a cure for this heartbreaking disease. One of the responsibilities of the NARFE-Alzheimer’s National Committee is to select research projects to fund with the money raised during the previous fiscal year. With the expert assistance of William H. Thies, chief medical and scientific officer of the Alzheimer’s Association, we voted to NARFE members contributed for Alzheimer’s research:

fund three new research projects, totaling $579,413. These bring the total number of NARFE-funded research projects to 56 since 1985. The three new grants are described below. Angela Kamer, Ph.D., of New York University, plans to study whether periodontal inflammation exacerbates cognitive and neurological pathologies linked with dementia. Results from this work may help to identify biomarkers that underlie the association between peripheral inflammation and Alzheimer’s development. Michael Agadjanyan, Ph.D., D.Sc., of the Institute for Molecular Medicine, Huntington Beach, CA, will be looking into whether the immune system can generate specific antibodies against beta-amyloid and generate a stronger immune response in the individual than those generated by conventional vaccines. Results from this work could shed light on how the immune system responds to this new type of vaccine and how well the vaccine protects against Alzheimer’s-like changes

in the brains of mice. Kalipada Pahan, Ph.D., of Rush University Medical Center, Chicago, IL, will be looking at whether sodium benzoate protects nerve cells in the brains of animals that have been genetically modified to have Alzheimer’s-like brain degeneration. Results from this work will help determine if sodium benzoate or similar chemicals should be further studied as potential treatments to prevent or slow Alzheimer’s disease. For those who may not know, NARFE-funded research has resulted in a number of significant findings, and 100 percent of your donations go to Alzheimer’s research. If you would like to make a donation, please use the coupon below. You also can donate online by going to the Alzheimer’s Association’s website, which features a secure link to the NARFE page, at www.alz.org/narfe.

Jane Rodgers is chair of the NARFEAlzheimer’s National Committee. Email: ajrodgers@tds.net.

SUPPORT ALZHEIMER’S RESEARCH

$10 Million Fund

$9,927,710* *Total as of September 30, 2012 100% of all contributed funds go to Alzheimer’s research. If you have any questions, write to: National Committee Chairman Jane Rodgers, P.O. Box 234 Wadesville, IN 47638-0234 Email: ajrodgers@tds.net

Enclosed is my NARFE-Alzheimer’s contribution: $ ___________. Every cent that is contributed is used for research. Please circle:

Mr.

Mrs.

NARFE-Alzheimer’s Research and mail to: Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633

Ms.

Address _____________________________________________________________ City _______________________________ State _________ ZIP ______________ Chapter number _______________________ Credit Card Information: ❑ Visa

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Elegant Danube River Cruise Alpine Beauty & Bohemian Highlights 14 Days $2398* from

Neuschwanstein Castle

Join other NARFE members departing April 22 or September 2, 2013

Start in Munich, Germany for one-night. Then travel to Schwangau and a guided tour of the famous Neuschwanstein (Disneyland) Castle and Rothenburg o.d. Tauber, an enchanting, fully preserved medieval town for an overnight stay. The following day you will leave for the Czech Republic stopping in Plzen, where Pilsner beer was created; followed by Bohemia and Prague, where you will see Charles Bridge. The next day travel to Passau and spend the day sightseeing before you embark on the 4-star TUI Melodia. Your cruise includes the Danube’s highlights including Melk and Vienna, Austria (the classical city of music); Esztergom and Budapest Hungary; Bratislava, Slovakia; and Linz, Austria; before returning to Passau. Travel back to Munich with additional sightseeing and included traditional Bavarian dinner, before flying home. Your “brand new” ship the TUI Melodia, constructed in 2011, offers a state-of-the-art, experience! *Add $300 per person for September 2nd departure date. Plus $250 per person for French Balcony.

Rocky Mountains & Western Frontiers Plus...Yellowstone National Park

Days

Travel with other NARFE members departing July 17, 2013

from

$1658*

Your tour begins and ends in the “Mile High City” of Denver, followed by Cheyenne, WY. The next two days you will visit Fort Laramie; Mount Rushmore and Crazy Horse Memorial in South Dakota. Then return to Wyoming with a stop in Deadwood, continuing through the Black Hills to Little Big Horn Battlefield and the Buffalo Bill Historical Center. Then you will depart for Yellowstone National Park (two days) with extensive sightseeing, including Old Faithful and Hayden Valley. Your journey continues to Grand Tetons National Park with spectacular landscape; Jackson Hole, WY; Salt Lake City, UT with a city tour including the Great Salt Lake and opportunity to witness the Tabernacle choir rehersal. Then travel West visiting the Utah Field House Museum; Dinosaur National Monument and explore the vast variety of fossils and Rocky Mountain National Park including a drive through the park on Trail Ridge Road.

Alaska Cruise Plus...West Coast Train Tour & San Francisco 13 Days

Join other NARFE members departing July 26, 2013

from

$2298*

Your vacation begins in Seattle where you will board the NCL Jewel for a seven night Alaska cruise through the scenic Inside Passage. Visit Ketchikan, “The Salmon Capital of the World;” Juneau, the capital of Alaska; Sawyer Glacier, with incredible colors; Skagway, where the Gold Rush began; and Victoria, BC, Canada’s Garden City on Vancouver Island. Disembark in Seattle and enjoy a city tour with all the highlights, including Pikes Place Market and the space needle. The next day board the Amtrak Coast Starlight train to San Francisco. Travel by day through Washington and Oregon’s spectacular scenic vistas. Relax in your Amtrak sleeper-roomette at night (includes VIP lounge). Arrive in Napa and visit two of the area’s premier wineries. Then spend two nights in San Francisco (stay near Fisherman’s Wharf ) with a city tour including the Golden Gate Bridge, Pier 39 and Union Square.

*Price per person, based on double occupancy. Airfare is extra.

For reservations & details call 7 days a week:

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Questions & Answers NOTE: The following Questions & Answers were compiled by Federal Benefits Service Department staff. These are real questions received by the Department, based on the members’ personal circumstances. The answers are not universal and may include information that is relevant to the correspondent’s particular situation. NARFE does not provide legal advice or assistance, does not provide financial planning advice or assistance, and does not provide tax advice or assistance. For legal, financial planning or tax advice/assistance, NARFE recommends that members contact an attorney, financial planner or certified public accountant/tax adviser.

ACTIVE EMPLOYEES MAXIMIZING TSP CONTRIBUTIONS QUESTION: My wife is under the Federal Employees Retirement System and will be eligible for retirement in 2013. She plans to retire in the middle of the year.She is considering contributing the maximum amount to her Thrift Savings Plan (TSP) account before she retires.She does not have a Roth TSP account. What do you think? Response: The first thing that you need to determine is how much money will be withheld from her salary until she retires and whether you are able to meet your bills if you contribute the maximum amount. The Internal Revenue Code (IRC) places a number of specific limits on

the dollar amount of contributions you can make to the TSP. These limits can change annually and are generally referred to as the “IRS limits” because the Internal Revenue Service (IRS) is responsible for calculating them each year. The IRC elective deferral limit is the maximum amount of employee contributions that can be contributed in a calendar year. For 2012, you could contribute up to $17,000. The IRC also allows employees over age 50 to contribute an additional amount to the fund. The IRC “catchup” contribution limit for calendar year 2012 is $5,500. This is separate from the elective deferral limit imposed on regular employee contributions. You already know that the money you contribute to her account is taxdeferred money because it is not a Roth TSP account. Therefore, you will have less tax to pay on her earnings for 2013. This would be especially helpful if she has a lot of annual leave. She will be paid a lump-sum amount for her leave after she retires. Her salary plus the lump-sum payment for the annual leave are taxable income. If she were planning to work the entire year, be sure that the contributions do not cause her to reach the IRC elective deferral limit before the end of the calendar year. If she does, she could lose out on matching contributions.

gible plans: Roth 401(k), Roth 403(b) or Roth 457(b). Is it also possible to transfer money from my voluntary contributions account? Would that be an eligible account? I am under the Civil Service Retirement System and have made periodic after-tax contributions to that account over the years. Upon retirement,I understand that I can transfer that money directly into a Roth IRA, but I would prefer to transfer it into a RothTSP account instead. Is this possible? Response: The Treasury Department regulations stipulate that only contributions originally designated as Roth can be transferred into a Roth TSP balance. Although voluntary contributions would have been made with after-tax money, they were not designated as Roth. Therefore, the TSP cannot accept them.

EMPLOYEE WANTS TO SUSPEND FEHBP

QA &

TRANSFERRING MONEY INTO ROTH TSP QUESTION:In the July 2012 issue of NARFE magazine,you indicated that it is possible to get money into a Roth Thrift Savings Plan account by transferring Roth money directly from eli-

QUESTION: I am an active federal employee. Can I suspend my Federal Employees Health Benefits Program (FEHBP) coverage to use C H A M P VA , TRICARE or TRICARE For Life?Are there things I should consider before doing so?

Response: Active federal employees cannot suspend their FEHBP coverage. However, they can cancel their coverage to use CHAMPVA, TRICARE or TRICARE For Life. Employees who do not participate in premium conversion may cancel their enrollment at any time. For employees who participate in premium conversion, eligibility for CHAMPVA or TRICARE is not a “qualifying life event” that would allow them to cancel their FEHBP enrollment. DECEMBER 2012 | NARFE

We’ve got the

Answers! The 4th Edition of NARFE’s Questions & Answers book is available now. It’s all here: Answers to your questions about general retirement issues and topics such as: • Annuity Computations • Court-Ordered Benefits • Disability Benefits/Compensation • Federal Employees’ Group Life Insurance • FERS Annuity Supplement • Health Benefits A value • Long-Term Care • Medicare • Re-Employment • Social Security • Survivor Benefits • Taxes • Thrift Savings Plan for NARFE members! • And more …

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Order your copy of the new Questions & Answers today! NARFE members can order online at www.narfe.org, or Clip and mail the coupon to: NARFE Q&A Book, 606 N. Washington Street, Alexandria, VA 22314 Name __________________________________________________________________ Number of Books Address ________________________________________________________________

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Questions & Answers 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. Call NARFE toll-free at

800-456-8410 for the nearest service officer. NARFE Service Centers are also available in some areas. Use the Service Center listings on the NARFE website, www.narfe.org. These employees may cancel during any annual Federal Benefits Open Season. If an employee who cancels FEHBP coverage to use CHAMPVA, TRICARE or TRICARE For Life decides to return to FEHBP coverage, the employee can do so during a future Open Season. If the employee loses CHAMPVA, TRICARE or TRICARE For Life coverage involuntarily, the employee can immediately re-enroll in the FEHBP. There are a few things an employee should consider before canceling FEHBP coverage. First, to be eligible to continue FEHBP coverage after retirement, a retiring employee must be enrolled or covered under the FEHBP for the five years of service immediately before retirement, or, if less than five years, for all service since the first opportunity to enroll. Employees can count their coverage under TRICARE toward meeting this requirement. However, the employee must be enrolled in an FEHBP health plan on the date of retirement to continue coverage.

RETIREES COLA FOR FERS RETIREE QUESTION: I am age 57 and retired under the Federal Employees Retirement System (FERS). I understand that FERS retirees do not start receiving cost-of-living adjustments (COLAs) to their annuities until age 62.Is this correct? Response: Yes. You will be eligible for a

COLA at age 62. At that time, you will have been retired long enough to get the full COLA allowed under the FERS laws and not a prorated one. The full COLA for FERS retirees is a full one if the COLA is 2 percent or less; a 2 percent increase if the COLA is between 2 percent and 3 percent; 1 percent less than the full COLA if it is above 3 percent.

SUSPENDING FEHBP FOR CHAMPVA QUESTION: I am currently enrolled in a Kaiser Permanente family plan. Because I am a disabled veteran,I now receive medical care through the Department of Veterans Affairs (VA). How do I suspend my coverage under the Federal Employees Health Benefits Program (FEHBP)? Response: If you have coverage under CHAMPVA, the law allows only retirees to suspend their FEHBP coverage because of coverage under the VA. If, at a later time, you want to re-enroll, you may do so. To suspend your FEHBP coverage, you must complete form RI 79-9, “Health Benefits Cancellation/ Suspension Confirmation,” which is available on the Office of Personnel Management (OPM) website, www.opm.gov. Click on “Find Forms” on the right of the OPM Home Page. Then, on the next page, click on “Retirement and Insurance Forms.” Make sure you check block D and sign the form, and return it to the address listed at the top of the form, along with the documentation required. DECEMBER 2012 | NARFE

PROBLEM WITH SUSPENDING FEHBP QUESTION: After my recent retirement, I completed the form to suspend my Federal Employees Health Benefits Program (FEHBP) enrollment because of my coverage under TRICARE.I was told that the effective date would be October. As it turns out, the Office of Personnel Management (OPM) suspended my enrollment in July, and my health plan has sent me bills seeking reimbursement for the treatment they provided after my enrollment was suspended. What can be done? Response. Thatâ&#x20AC;&#x2122;s an unfortunate situation. You might try calling or writing to the office at OPM that is handling your case and, after explaining to them your situation, ask them to change the effective date of your suspension to a more current one.

FEHBP RATES NOT HELD DOWN QUESTION: How can NARFE be thankful to the Office of Personnel Management (OPM) for holding down the Federal Employees Health Benefits Program rates? If a person were to read what NARFE has been putting out the last few weeks, one would think that a 3.4 percent increase was in the works (and,of course,some lower and some higher). Please take a look at all of the health maintenance organizations (HMOs) for California.My Kaiser plan (Code 594) went from $151 to $199 per month,a 32 percent increase. Why is NARFE not up in arms over this increase? Response: The 3.4 percent increase is the average increase for 2013. Every year, OPM negotiates contracts with all of the plans in the FEHBP, such as Kaiser, to set benefits and premiums for the next year. These negotiations NARFE | DECEMBER 2012

Questions & Answers

The invention of the year is great news for your ears NEW Perfect Choice HD™ is easy to use, hard Now w to see and costs far less than hearing aids…

ith powe r and more clarit y!

it’s like reading glasses for your ears™! New Personal Sound Amplification Product is an affordable alternative

“Reading glasses for your ears” Perfect Choice HD is NOT a hearing aid. Hearing aids can only be sold by an audiologist or a licensed hearing instrument specialist. In order to get a hearing aid, you had to go to the doctor’s office for a battery of tests and numerous fitting appointments. Once they had you tested and fitted, you would have to pay as Perfect Choice HD feature comparison Perfect Choice HD

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much as $5000 for the product. Now, thanks to the efforts of the doctor who leads a renowned hearing institute, there is Perfect Choice HD. It’s designed to accurately amplify sounds and deliver them to your ear. Because we’ve developed an efficient production process, we can make a great product at an affordable price. The

Are you or a loved one frustrated in these situations? • Restaurants • Dinner parties • Outdoor conversations • Lectures • Sermons • Meetings …and other times where you need to turn up the volume

Affordable, Simple to use, Virtually impossible to see unit has been designed to have an easily accessible battery, but it is small and lightweight enough to hide behind your ear… only you’ll know you have it on. It’s comfortable and won’t make you feel like you have something stuck in your ear. It provides high quality audio so sounds and conversations will be easier to hear and understand. Try it for yourself with our exclusive home trial. Some people need hearing aids but many just need the extra boost in volume that a PSAP gives them. We want you to be happy with Perfect Choice HD, so we are offering to let you try it for yourself. If you are not totally satisfied with this product, simply return it within 60 days for a refund of the full product purchase price. Don’t wait… don’t miss out on another conversation… call now!

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Over the years, technology has made the way we live easier, safer and more convenient. In many cases, it’s even made many products more affordable… (remember how much the first VCR used to cost?). Unfortunately, the cost of hearing aids never seemed to come down. Now, a new alternative has been invented… it’s called Perfect Choice HD™.

1998 Ruffin Mill Road • Colonial Heights, VA 23834 Perfect Choice HD is not a hearing aid. If you believe you need a hearing aid, please consult a physician.

are private and, by law, exclusive to OPM. NARFE cannot join in them. The premiums negotiated are based on a set formula. Under the FEHBP regulations, HMO plans, such as Kaiser Permanente, are required to provide benefits at the best price to the FEHBP that they do to other employer groups close in size to the federal group program. In addition, the law limits all large group insurance plans to using at least 80 percent of the premiums they collect to cover claims and improve the benefits they offer. NARFE’s role in all of this is to ensure that neither Congress nor the administration reduces or eliminates your earned health insurance benefits. NARFE is primarily a lobbying organization, and we have fought the battles in the halls of Congress to ensure federal employees and retirees continue to have their health benefits and that the share of the total premiums between the government’s portion and the employee’s portion is fair. We continue to press the administration to allow the FEHBP to receive the same subsidy provided to other employer-sponsored health insurance providers under the Medicare Modernization Act of 2003 for prescription drug coverage equal to or better than the Medicare Part D coverage. The $1 billion subsidy would help keep your future premiums down. With Congress and the administration both eyeing a reduction in federal benefits to help pay down the national debt and reduce the deficit, our efforts are never-ending.

COVERAGE LIMITS UNDER FEHBP/MEDICARE QUESTION: I have a Blue Cross/Blue Shield (BC/BS) Standard option plan under the Federal Employees Health DECEMBER 2012 | NARFE

FR va lue GI EE F da T t$ 35 Response: The 2012 BC/BS plan brochure states that under the Standard option, “benefits for physical therapy, occupational therapy and speech therapy are limited to 75 visits per person per calendar year.” We did not see any changes to these benefits in the 2013 brochure (see p. 38 for NARFE’s annual analysis of FEHBP plan changes for 2013). With regard to Medicare, here is what the Medicare and You booklet from the Centers for Medicare & Medicaid Services says about physical therapy: “Medicare covers evaluation and treatment for injuries and diseases that change your ability to function when your doctor or other health care provider certifies your need for it. There may be a limit on the amount Medicare will pay for these services in a single year, and there may be certain exceptions to these limits. You pay 20 percent of the Medicare-approved amount, and the Part B deductible applies.” (You can order or download this publication by going to www.medicare.gov and clicking on “Publications” under “Take Action” at the bottom of the page.) As you can see, there is a qualifier that suggests Medicare may have a limit. We suggest that you contact the doctor or physical therapist to find out what they know about the limits on this benefit under Medicare.

To obtain an answer to a federal benefits question, 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 retbenefits@narfe.org. NARFE | DECEMBER 2012

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SWITCH AND SAVE ON HEAR COST EX AMPLE : PHONAK S SMART III ( RETAIL PRICE $4,050 PER PAIR )

2,190 MemberPlus Price/Pair

2,190 FEP Benefit (up to $2,500 )

Appointments Must Be Scheduled Through TruHearing. MemberPlus Membership fee waived *Three visits for fitting, programming or adjustment of the hearing aids are included. Price shown does not include discounted comprehensive hearing exam of $75 (which is covered by the Service Benefit Plan; the Insured may need to submit for reimbursement), or applicable state and local taxes. Service Benefit Plan members get the TruHearing MemberPlus membership fee waived through December 15, 2013. Regular yearly cost for the TruHearing MemberPlus membership is $108. Must be a Service Benefit Plan member to access TruHearing MemberPlus discounted pricing.

§ The Service Benefit Plan will pay up to $1,250 per ear in a 36-month period, up to a maximum of $2,500 per pair purchased (2012 benefit).The BCBS FEP Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items that are covered under your Service Benefit Plan policy or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefits first. To find out what is covered under your policy, contact the Service Benefit Plan. The products and services described herein are neither offered

The Blue Cross and Blue Shield Association is an association of independent, locally operated Blue Cross and Blue Shield Plans.

TO BLUE GREEN ING AIDS. 0

$ $10 shipping & handling

/PAIR*

First, become a Service Beneﬁt Plan member. Then, to take advantage of these savings enroll in TruHearing’s MemberPlus program for free online at TruHearing.com/enroll and use group number HP2R-A365. Then call (877) 360-2432 M-F, 8am - 8pm Central to schedule your hearing appointment. TruHearing is an independent company providing discounts on hearing aids.

(a $108 value) through 12/31/2013. nor guaranteed under any local Blue company’s contract with the Medicare program. In addition, they are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Service Benefit Plan’s Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, BCBSA, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any items and vendors made available through Blue365, at any time.

PEN SEASON REPORT FEHBP Plan Changes

This is the last of a three-part series. he 2012 Federal Benefits Open Season for Federal Employees Health Benefits Program (FEHBP) enrollment changes ends Monday, December 10, 2012. You should receive this issue of NARFE magazine in late November, so there’s still time to review health plans and make an informed decision. This month’s Open Season Report includes details about plan changes in six open-to-all, fee-for-service plans for 2013. It also provides the same premium charts that were included in November’s Open Season Report. Open Season changes made by federal retirees and survivor annuitants are effective January 1, 2013, and the premium changes will be effective in the February 1, 2013, annuity payments. Open Season changes for federal employees are effective at the beginning of the first pay period after January 1, 2013. If you are a federal employee and not presently enrolled in the FEHBP, you may enroll during Open Season if you are not otherwise excluded from coverage because of the nature of your appointment. If you are an annuitant and are not presently covered by the FEHBP as an enrollee or a family member, you cannot enroll in the FEHBP during Open Season, except if you suspended your FEHBP enrollment in favor of coverage under TRICARE, TRICARE For Life, a Medicare Advantage HMO plan, CHAMPVA, Medicaid or as a Peace Corps volunteer.

MEDICARE SUBOPTION PILOT PROGRAM STATUS For 2013, the Mail Handlers Benefit

Plan (MHBP) will again offer Medicare enrollees incentives through subsidizing the enrollee’s Medicare Part B premium. Retirees enrolled in MHBP Standard option who are already covered by Medicare Part A and who are either covered or were eligible to be covered by Medicare Part B sometime in 2012 can sign up for the suboption. The suboption pilot features a Medicare Part B premium pass-through. For each month a person is enrolled in the program, with Medicare Parts A and B as the primary coverage, MHBP will contribute an amount equal to the regular 2013 Medicare Part B monthly premium or $125, whichever is less. MHBP will not waive its deductibles, co-payments or coinsurance for participants. See p. 89 of the MHBP 2013 brochure for all of the details. 2013 brochures for all of the FEHBP plans can be viewed and downloaded to your computer by going to www.opm.gov/insure.

2013 PREMIUMS The overall weighted average total premium increase for nonpostal employees and all annuitants in the FEHBP for 2013, based on all of the enrollees in all of the plans, is 3.4 percent. For postal employees, it is 3.8 percent. The 3.4 percent figure is not an across-the-board increase per plan. It is the weighted average increase for the total premium (government and employee shares) for all of the enrollees in all of the plans in the FEHBP. This means that some plans’ premiums decreased, some did not change at all, and some increased. Fee-for-service plans’ total premiums will rise an average of 3.2 percent, while local health maintenance organization (HMO) plans’ premiums

will increase an average of 6.7 percent. Federal employees with self-only coverage will pay, on average, $2.33 more per two-week pay period, while those with family coverage will see an average increase of $6.18. Enrollees in the Blue Cross/Blue Shield Standard option – the most popular enrollment – will see their premiums increase .4 percent for self-only coverage and .8 percent for family in 2013. There are HMOs where enrollees will see very large increases in their share of the premium. If you are currently enrolled in one of the Aetna Open Access plans or one of the Health Net plans, look at your premiums for next year. These have double-digit increases in the enrollee share of the premiums. For example, the monthly enrollee share of premiums in the Aetna Open Access of Delaware, New Jersey and Pennsylvania family plan will be $1,688.74, an increase of $110.13. The enrollee premium for The Health Plan of the Upper Ohio Valley family coverage will nearly double for 2013, with an increase of $225.68 per month. On the other end of the spectrum, monthly premiums for GHI HMO Select of New York (enrollment Codes X41, X42, 6V1 and 6V2) will, for the second year in a row, decrease substantially; in the case of 6V2, by a whopping $711.64 from 2012. New Mexico’s Lovelace Health Plan is another whose enrollee’s share of premiums will drop substantially in 2013. But even if your particular plan’s premiums are not rising by much, make sure you read the brochure – particularly Section 2, “How We Change for 2013.” This will reveal which, if any, outof-pocket expenses, such as co-pays and coinsurance, have increased. Also, when DECEMBER 2012 | NARFE

reading the brochure, note which costs are not included in meeting the plan’s yearly deductible. These out-of-pocket expenses can really add up.

SUMMARY OF BENEFITS AND COVERAGE One of the provisions of the Patient Protection and Affordable Care Act (health care reform law) requires group health plans to provide a summary of the plan’s benefits and coverage. The Summary of Benefits and Coverage (SBC) will have easy-to-understand information about out-of-pocket costs, coverage and the rights of enrollees. Each plan is responsible for informing its enrollees about where to find its SBC on its website, as well as how to obtain a paper copy of its SBC. All plan brochures have a small design change for 2013. On the cover of each brochure, there is an information box that provides the page numbers to find the new premium rates, the plan’s changes for the new year and the SBC.

PLANS’ STATUS FEHBP participants will be able to select from 230 health plan choices. There are 14 fee-for-service options (11 open to all), including two high-deductible health plan (HDHP) options and one consumer-driven health plan (CDHP) option. Five insurance plans will join the FEHBP in 2013: • Anthem Blue Cross Select HMO of California in Southern California • Calvo’s Select Care in Guam, Northern Marianna Islands and Palau • Blue Cross/Blue Shield of Illinois in the Chicago area • Humana Health of Ohio in parts of Ohio, Indiana and Kentucky • Aetna Whole Health in parts of Illinois, Michigan, Texas, Virginia and Wisconsin. NARFE | DECEMBER 2012

Only one plan will leave the FEHBP in 2013: HMO Health Ohio, Codes L41 and L42. Neither Alaska nor South Carolina will have HMO plans available for 2013. However, the Aetna Health Fund, a consumer-driven high deductible plan, will be available in both states for 2013. The following plans will remain in the FEHBP but will reduce their service areas: • Aetna Open Access will drop service in Illinois (Chicago area and Northern Illinois area) and Indiana, Codes IK1 and IK2 • Health America Pennsylvania (both HMO and HDHP) will drop service in the Central Pennsylvania area, Codes SW1 and SW2 • M.D. IPA will drop service in the Central Virginia and Richmond areas. Enrollees in the plan codes being dropped who do not change health plans during Open Season will have to travel to their plan’s remaining service areas for medical care in order to obtain full benefits from the plan in 2013.

TERMINATION NOTICE Enrollees will know of their plan’s termination from two sources. First, a pre-Open Season Letter for all agency benefits officers is produced. It includes details about Open Season, including the names of plans leaving the FEHBP. Second, all terminating plans are required to mail a notice to their members advising them of their decision to withdraw from the program. Because of the transitional care provision in the Patients’ Bill of Rights, enrollees with chronic or disabling conditions, or in the second or third trimester of pregnancy, may be able to continue seeing their specialists even after the plan’s termination date.

Plans generally decide to withdraw based on an assessment of enrollment, use and premium. However, OPM can initiate a termination if it determines that a plan is no longer able to meet its contractual obligations to the FEHBP.

DENTAL AND VISION BENEFITS Open Season enrollment for the Federal Employees Dental and Vision Insurance Program (FEDVIP) will coincide with the FEHBP 2012 Open Season for 2013 health plan changes and the Flexible Spending Accounts (FSA) Open Season for current employees. (Under Internal Revenue Service rules, retirees cannot participate in the federal government’s FSA program.) Eligible parties will be able to choose benefits that cover dental care, vision care or both. In addition, the coverage(s) can be elected for the enrollee only, the enrollee plus one other person, or the enrollee and his or her family. Anyone who retired on an immediate annuity, including an employee who retired under the Federal Employees Retirement System (FERS) minimum retirement age (MRA) + 10 provisions of the retirement law and had attained his or her MRA prior to separation for retirement, is eligible for FEDVIP. In addition, survivors who receive immediate annuities as a result of the death of a retiree described in the previous sentence also are eligible.

MEDICARE PART D AND FEHBP The Medicare Part D prescription drug benefit is generally geared to people who do not have any employerprovided or union-provided prescription drug coverage. Anyone covered under the FEHBP has what is known as “creditable prescription drug coverage.” This means that the FEHBP prescription

PEN SEASON REPORT drug coverage is at least as good as, if not better than, the Part D coverage. This also means that if a person with FEHBP coverage turns down Part D when he or she is first eligible to enroll but signs up at some point in the future, he or she will not be required to pay a penalty for late enrollment in Part D. The FEHBP plan brochures contain statements certifying the creditability of each individual plan’s drug coverage for Part D late-enrollment purposes. These statements will be found at the beginning of each plan’s brochure, immediately before the table of contents, and will be headed “Important Notice From (Plan’s Name) About Our Prescription Drug Coverage and Medicare.” Part D requires a monthly premium in addition to the Medicare Part B premium. (The basic Medicare Part B premium is $99.90 per month in 2012.) Part D premiums vary from plan to plan, but the estimated average monthly basic premium for 2012 is $30. Some may pay a higher monthly premium based on their income. For 2013, the Part D enrollee will have to pay up to the first $325 in prescription drug costs, the Part D deductible amount. Some Part D enrollees will not be required to pay the $325 deductible. In addition, Part D enrollees will pay co-pay costs until the combined amount paid by both the enrollee and the Part D plan reaches $2,970. After that, the coverage gap – the so-called donut hole – kicks in, and the enrollee pays 79 percent of the cost of generic prescriptions and 47.5 percent (after discount) of the cost for brand name prescriptions until they reach $4,750. After that threshold is met, Part D enrollees will only have to pay a small co-pay or coinsurance for the rest of the calendar year.

If Medicare is a person’s primary insurer, FEHBP plans will coordinate prescription drug payments with the Medicare Part D carrier. Under your FEHBP coverage, you simply pay co-payments and/or coinsurance for your prescription drugs, so the vast majority will not need Medicare Part D.

FEE-FOR-SERVICE CHANGES This portion of the report addresses the principal changes of six fee-forservice plans available to all employees and annuitants. (There are four fee-forservice plans open only to specific groups.) Space limitations preclude listing all changes for all plans. When reviewing each plan’s changes, take special note of announced changes in preferred provider organizations (PPOs). If you live in a state where your plan is changing its PPO network, you need to contact the plan and ask for a new PPO directory for 2013 to assure that your doctors, hospitals, etc., will be in the new PPO network. Otherwise, you may wish to change plans during Open Season. Because there are more than 200 FEHBP HMOs, it is not possible to list their changes in this report. OPM publishes the Guide to Federal Benefits: For Federal Retirees and Their Survivors (RI 70-9) and a similar one for current federal employees (RI 70-1), which provide premium and out-of-pocket expense data on all of the plans in the FEHBP. You can access those guides through www.opm.gov/insure. When deciding on a plan, be sure to review your current plan’s 2013 brochure, as well as the brochures for other plans you are considering. You can view brochures for each plan by going to www.opm.gov/insure. Every brochure is formatted in the same way

with sections on topics such as “How Our Plan Has Changed,” “Your Costs for Covered Services,” “Coordinating Benefits With Other Coverage,” etc. For 2013, the cover of each plan brochure has an information box listing the page where the changes to the plan are listed. Once you have identified those plans in which you have an interest, use the charts on pp. 42-43 to do a comparison of premiums. This will help in your decision making.

PROGRAMWIDE CHANGES All plans have expanded Section 3 of their brochures under “How You Receive Benefits” to conform with the 2010 health care law, the Patient Protection and Affordable Care Act. Kentucky has been dropped from and South Carolina added to the list of states designated as medically underserved in 2013. The entire list is: Alabama, Alaska, Arizona, Idaho, Illinois, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oklahoma, South Carolina, South Dakota and Wyoming. In these states, fee-forservice plans reimburse any licensed medical practitioner for all covered services within the scope of that license, even if they wouldn’t normally cover them in states not designated as medically underserved. All plans have removed annual limits on essential health benefits as described in Section 1302 of the Patient Protection and Affordable Care Act, and will offer coverage with no cost sharing for specific preventative care and screenings for women provided in comprehensive guidelines adopted by the Health Resources and Services Administration.

PLAN CHANGES Following are major fee-for-service plans and the changes in their costs DECEMBER 2012 | NARFE

Did you know that the APWU Health Plan will work with Medicare to ensure your claims are processed and paid accordingly? With the APWU Health Plan’s High Option there is no extra paper work for you to fill out. Many retirees prefer the APWU Health Plan because of its affordable premium and excellent coverage. You’ve earned the freedom to do what you want and enjoy life to its fullest. The APWU Health Plan’s High Option features a low deductible, low copays, and a comprehensive prescription drug plan. • NEW 100% coverage for Shingles Vaccine after the age of 60 • With Medicare A and B: • APWU Health Plan will waive deductible and coinsurance • You are free to choose any doctor you wish without accruing out-of-networks costs • • • • •

Automatic claims submission to Medicare for the High Option No denials for a pre-existing condition Cancer Centers of Excellence paid at 95% Excellent Pharmacy Benefits with both retail and mail order options $1500 towards hearing aids

For more information please visit: www.apwuhp.com or call: (800) 222-2798

PEN SEASON REPORT and benefits for 2013, taken from their brochures. Because of space limitations, we do not show all of the changes for next year, and we urge you to obtain the plans’ brochures and review them carefully. Note: Postal rates apply to career employees of the U.S. Postal Service. The Postal Service has a different costsharing arrangement than the rest of the federal government. The postal premium rates reported below are for Category 2

employees, which covers most career nonAmerican Postal Workers Union, nonPostal Career Executive Service, non-lawenforcement employees and employees covered by the National Rural Letter Carriers’ Association. American Postal Workers Union (APWU) High Option Changes. In 2013, monthly premiums for enrollees in self-

2013 Monthly Premiums – Fee-For-Service Plan Option

Code

Total Premium

Gov’t Pays

You Pay

Enrollee Increase/ Decrease

APWU High self High family Consumer-Driven self Consumer-Driven family

471 472 474 475

$ 530.88 1,200.40 378.32 851.09

$398.16 900.30 283.74 638.32

$132.72 300.10 94.58 212.77

$ 5.10 11.54 5.35 12.05

104 105 111 112

599.63 1,354.36 511.98 1,198.82

413.49 920.73 383.99 899.12

186.14 433.63 127.99 299.70

.72 3.59 6.11 14.28

401 402

496.43 1,223.17

372.32 917.38

124.11 305.79

.62 -1.55

311 312 314 315 341 342

611.00 1,389.59 389.44 885.65 419.84 958.95

413.49 920.73 292.08 664.24 314.88 719.21

197.51 468.86 97.36 221.41 104.96 239.74

12.48 30.48 4.64 10.55 5.00 11.42

454 455 481 482 414 415

622.81 1,425.32 537.62 1,218.19 373.62 890.76

413.49 920.73 403.22 913.64 280.22 668.07

209.32 504.59 134.40 304.55 93.40 222.69

.58 3.59 18.83 42.69 7.63 18.20

321 322

574.15 1,246.77

413.49 920.73

160.66 326.04

-1.12 -1.56

441 442 444 445

661.68 1,558.25 526.85 1,203.26

413.49 920.73 395.14 902.45

248.19 637.52 131.71 300.81

-11.03 -22.97 .00 -4.69

Blue Cross/Blue Shield Standard self Standard family Basic self Basic family

Foreign Serv. Ben. Plan High self High family

GEHA High self High family Standard self Standard family HDHP self HDHP family

Mail Handlers Standard self Standard family HDHP self HDHP family Value Plan Standard self Value Plan Standard family

NALC High self High family

SAMBA High self High family Standard self Standard family

only coverage will increase $5.10 to $132.72 per month. For enrollees in family coverage, the increase is $11.54 to $300.10 per month. Category 2 postal employees will pay $45.94 for self-only coverage and $103 for family coverage each pay period. In 2013, the plan offers a wellwoman benefit for preventative services with no cost sharing; covers yearly routine exams; eliminates the precertification requirement for nuclear cardiology, but requires preapproval for minimally invasive treatment of neck and back pain. Consumer-Driven Health Plan (CDHP) Changes. Next year’s monthly premiums will increase $5.35 for selfonly coverage to $94.58 and $12.05 for family coverage to $212.77. Category 2 postal employees will pay biweekly premiums of $32.74 for self-only and $73.65 for family coverage. The plan has dropped the five-year limitation for sigmoidoscopy and the 10-year limit for colonoscopy, and changed the minimum prescription drug cost to $10 for in-network mail order and $15 for innetwork retail. Blue Cross/Blue Shield (BC/BS) Standard Option Changes. Premiums are slightly higher for self-only coverage, up $0.72 to $186.14 per month; and family coverage, up $3.59 to $433.63. Category 2 postal employees will see their biweekly premiums for self-only coverage increase $5.06 to $70.01; and for family coverage, biweekly premiums will go up $12.29 to $164.73. There are few changes exclusive to the benefits under the Standard option. Co-payments for preferred urgent care services will be a flat $40 in 2013, and those for continuous home hospice care will increase from $200 to $250 per episode. DECEMBER 2012 | NARFE

Basic Option Changes. Premiums will rise $6.11 to $127.99 per month for self-only coverage and $14.28 to $299.70 for family coverage. Category 2 postal employees will pay $44.31 every two weeks for self-only coverage and $103.74 for family coverage. For 2013, the Basic plan will decrease co-payments for outpatient physical, occupational and speech therapy billed by a preferred hospital; decrease co-payments for outpatient cardiac/ cognitive/pulmonary rehab billed by a preferred hospital; decrease the co-payments for some outpatient facility services at a preferred facility; increase copays for some outpatient diagnostic studies and radiology services at a member or nonmember facility; and add co-payments for diagnostic tests related to accidental injury and performed in settings other than an emergency room or urgent care center. Changes to both Standard and Basic options. In 2013, the plan will pay up to $2,500 per year for children’s hearing aids, up to $2,500 every three years for adult hearing aids, and up to $5,000 per year for bone-anchored hearing aids for adults and children; provide preventative care benefits for HPV screening for females once a year; pay for contraceptive services, drugs and devices in full if purchased at a preferred retail or Internet pharmacy, or billed by a preferred provider; and provide benefits up to 30 consecutive days of inpatient hospice care performed at a preferred hospice facility.

coverage each pay period next year. Co-payments for visits to PPO mental health providers are reduced to $10. High Option Changes. Monthly premiums for self-only coverage will rise $12.48 to $197.51 per month. High family coverage premiums will increase $30.48 to $468.86 per month. Category 2 postal employees will pay biweekly

2013 Monthly Premiums – Largest HMOs* State

Plan Option

MD, DC, VA

M.D. IPA

Kaiser Foundation N. California High self 591 729.99 High family 592 1,742.56 Standard self 594 613.45 Standard family 595 1,435.48

413.49 920.73 413.49 920.73

316.50 821.83 199.96 514.75

57.06 139.63 48.01 115.22

Kaiser Foundation Mid-Atlantic High self E31 566.30 High family E32 1,302.49 Standard self E34 377.82 Standard family E35 868.96

413.49 920.73 283.37 651.72

152.81 381.76 94.45 217.24

4.81 13.41 4.76 10.95

Kaiser Foundation S. California High self 621 518.20 High family 622 1,197.69 Standard self 624 332.06 Standard family 625 767.50

388.65 898.27 249.05 575.63

129.55 299.42 83.01 191.87

3.47 8.03 2.25 5.22

NARFE | DECEMBER 2012

High self High family

DC, MD, VA

Aetna Open Access

HMSA

Code

Total Premium

Gov’t Pays

You Pay

JP1 JP2

$ 580.45 $413.49 $166.96 1,338.52 920.73 417.79

Enrollee Increase/ Decrease $ 1.17 5.19

JN1 JN2 JN4 JN5

849.55 1,902.90 535.15 1,217.02

413.49 920.73 401.36 912.77

436.06 982.17 133.79 304.25

98.10 221.45 9.33 12.97

871 872

459.68 1,023.23

344.76 767.42

114.92 255.81

-3.55 -7.91

Washington Group Health Cooperative High self 541 655.50 413.49 High family 542 1,409.37 920.73 Standard self 544 421.50 316.13 Standard family 545 951.62 713.72

242.01 488.64 105.37 237.90

45.02 97.54 9.78 22.11

Montana Aetna Health Fund HDHP self 224 415.03 HDHP family 225 908.87

103.76 227.22

9.64 21.09

High self High family Basic self Basic family High self High family

WA Government Employees Health Association (GEHA) Standard Option Changes. Monthly premiums for self-only coverage will increase $4.64 to $97.36 and $10.55 to $221.41 for family coverage. Category 2 postal employees will pay $33.70 for self-only coverage and $76.64 for family

premiums of $75.26 for self-only coverage and an increase to $180.99 for family coverage. Changes to Both Standard and High Options. The plan will remove the annual deductible from the scheduled benefits for chiropractic visits and Xrays; cover all FDA-approved contraceptive services with a physician’s prescrip-

311.27 681.65

*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.

PEN SEASON REPORT tion with no cost sharing in network; cover routine costs associated with participation in an approved clinical trial; remove the annual limit maximum for infertility treatment; change from an annual maximum per person per year for allergy testing and replace it with limiting tests to 100 per person per calendar year; drop the $250 limit for nutritional counseling; and cover breastfeeding support, supplies and counseling. Mail Handlers Benefit Plan (MHBP) Standard Option Changes. Monthly premiums will increase $0.58 to $209.32 for self-only coverage, and family coverage will increase $3.59 to $504.59. Category 2 postal employees will see their biweekly premiums increase $5 to $80.71 for self-only coverage and go up $12.29 to $197.48 for family coverage. For next year, MHBP will increase benefits for services of a non-PPO radiologist related to preauthorized outpatient diagnostic tests performed in a PPO facility; add a benefit for flu vaccines; add benefits for well-woman exams; add coverage for breastfeeding support, supplies and counseling; expand coverage for FDA-approved contraceptive drugs and devices; drop the requirement that the calendar-year deductible be met before vision service benefits are available; add preauthorization requirements for urine drug testing, certain oncology and specialty drugs, and pain management services; change the benefit limitation for inpatient services provided by a Christian Science nursing facility from $30,000 per person per year to 50 days per year per person; add a 48-hour limitation on observation/status services provided in the outpatient department of a hospital; and change the benefit level for covered medications and supplies received from VA, DOD and HHS medical facilities; reduce the co-pay

amount for visits to a PPO convenient care clinic; change non-network outpatient services related to mental health and substance abuse treatment benefits by requiring that the calendar-year deductible be met before benefits are available; and decrease the per-prescription co-payment for generic prescription drugs obtained from a network pharmacy and the planâ&#x20AC;&#x2122;s mail order drug program. Value Plan Changes. Enrollees with self-only coverage will see a $7.63 increase and pay $93.40 per month; those with family coverage will pay $222.69 per month, an increase of $18.20. Category 2 postal workers will see a $6.20 increase to $32.33 every two weeks for self-only coverage and pay $77.08 every pay period for family coverage. The only change for 2013 specific to the Value Plan is that the co-payment amounts to a PPO convenient care clinic will be reduced from $25 per visit to $15.

for developmental screening of children under age 3; coverage for developmental surveillance and behavioral assessment for children age 21 and younger; hearing screening for children ages 4-10; hemoglobin or hematocrit screening for children age 12 months; and lead screening tests for children age 6 and younger. Under the planâ&#x20AC;&#x2122;s prescription drug benefits: At its CareSelect network pharmacies, enrollees will pay 45 percent of the cost of nonformulary brand name drugs or 30 percent when Medicare Part B is primary; $43 for up to a 60-day supply or $65 for a 90-day supply of formulary brand name drugs using the mail order program; $58 for up to a 60-day supply or $80 for a 90-day supply of nonformulary brand name drugs using the mail order program; or, if the enrollee has Medicare Part B, $37 for up to a 60-day supply and $55 for a 90-day supply purchased through the mail order program.

NALC Health Benefit Planâ&#x20AC;&#x201C; National Letter Carriers Association High Option Changes. Enrollees will pay $160.66 per month for self-only coverage, a decrease of $1.12, and $326.04 for family coverage, down $1.56. Category 2 postal workers will see an increase to $58.25 per pay period for self-only and to $115.07 for family coverage. There are many plan changes for 2013. NALC will now cover preventative medicine counseling for women; vaccines for adults for hepatitis B and measles, mumps and rubella; full coverage of colonoscopy screening with polyp removal once every 10 years for those age 50 and older; coverage for HPV testing for women age 30 and older; initial examination of a newborn by a PPO provider will be free; coverage for alcohol and drug use assessment for children ages 11 through 21; coverage

Rural Carrier Benefit Plan Plan Changes. Premiums increased $6.54 per month to $189.73 for self-only coverage and increased $12.32 per month to $311.37 for family coverage. Enrolled Category 2 postal workers will see biweekly premiums increase to $71.67 for self-only coverage and increase to $108.30 for family coverage. For 2013, the plan will add coverage for a weight management program under its educational classes; increase coverage for nutritional counseling; decrease the coinsurance for inpatient hospital services rendered by a nonPPO provider; remove the lifetime limit for hospice care, and pay 85 percent for PPO services and 70 percent for nonPPO services; lower the co-payment for covered services at a PPO urgent care center; add coverage for foot orthotics; drop the $5,000 maximum for covered infertility services; remove the dollar DECEMBER 2012 | NARFE

limit for diabetic education programs and replace it by paying 85 percent of services provided by a PPO provider and 75 percent of services by a nonPPO; increase to $1,200 per ear the benefit for hearing aids; increase coverage for augmentative and alternate communication devices; require preauthorization for certain nonpreferred brand medications that have generic and/or preferred brand name alternatives; and require members to pay the difference in cost between the brand name and the generic equivalent, plus the brand name co-payment when the physician indicates “Dispense as Written” on the prescription. Special Agents Mutual Benefit Association (SAMBA) High Option Changes. Premiums for

2013 will decrease $11.03 to $248.19 for self-only coverage and go down $22.97 to $637.52 per month for family coverage. Category 2 postal employees will pay $98.65 for self-only coverage and $258.83 for family coverage per pay period. Standard Option Changes. Next year, self-only enrollees will see the same monthly premiums of $131.71 for self-only coverage, and family coverage enrollments will drop $4.69 to $300.81 per month. Category 2 postal employees will pay $45.59 per pay period for self-only and $104.13 for family coverage. In 2013, the plan will apply the calendar-year deductible for PPO benefits for lab, X-ray and other diagnostic tests, and for PPO benefits under outpatient hospital, clinic or ambulatory

surgical center benefits; and pay full benefits for covered maternity care. Both High and Standard Option Changes. The plan has contracted with CVS Caremark to handle both retail and mail order benefits; added LabCorp to its lab program; will provide full coverage for women’s oral contraceptive drugs, FDA-approved contraceptive devices, sterilization procedures and contraceptive education and counseling; will be using the maximum non-PPO reimbursable charge to determine its allowance for nonPPO charges; will cover services of a standby doctor for a Caesarean section; and waive the office co-pay for annual routine physical and gynecological visits.

Federal Benefits Service Department

FEDVIP— The Federal Employees Dental and Vision Insurance Program Federal and U.S. Postal Service employees, retirees, and survivor annuitants: You and your eligible family members may not have the dental or vision coverage you need!! Take advantage of the 2012 Federal Benefits Open Season (November 12–December 10) to gain coverage and peace of mind.

Visit www.BENEFEDS.com/OS2012 to: f check eligibility requirements f research FEDVIP plans and rates f find answers to frequently asked questions f enroll!

Or call 1-877-888-FEDS (1-877-888-3337) TTY 1-877-889-5680

BENEFEDS is the fast, secure, and only way to enroll in FEDVIP.

Federal Employees Dental And Vision Insurance Program

BEN09006 (0812)

| DECEMBER BEN09006 _NARFE_ad.indd 1 NARFE 2012

8/29/2012 1:24:59 PM

PEN SEASON REPORT Dental/Vision Program

he Federal Employees Dental and Vision Insurance Program (FEDVIP) is a supplemental dental and vision program authorized by the Federal Employee Dental and Vision Benefits Enhancement Act of 2004. The Office of Personnel Management (OPM) contracts with 10 insurance carriers – seven dental plans and three vision plans – to provide comprehensive coverage under the program. The following information was provided by OPM. Three enrollment types are available: • Self-Only: A self-only enrollment covers only the enrolled employee or annuitant. • Self Plus One: A self-plus-one enrollment covers the enrolled employee or annuitant, plus one eligible family member. * Self and Family: A self-and-family enrollment covers the enrolled employee or annuitant and all eligible

family members. Federal and U.S. Postal Service employees are eligible to enroll in FEDVIP if they are eligible for the Federal Employees Health Benefits Program (FEHBP). Annuitants (regardless of FEHBP status) are eligible for FEDVIP.

plans but will be administered by Davis Vision. The Blue Cross and Blue Shield Association (BCBSA) will contract with Davis Vision, a wholly owned subsidiary of Highmark, Inc. (a licensee of BCBSA and a participating plan for FEP Blue Vision) to administer its offering under the program. Davis Vision, Inc. is one of the nation’s leading managed vision and eye-care providers, and presently serves more than 10,000 client groups covering nearly 35 million beneficiaries. • FEP Blue Vision offers flat-rate reimbursement in areas without adequate access. • Low-vision services are offered, and members can receive discounts on laser vision correction. • Offers an unconditional breakage warranty to repair or replace any plan frame or lens(es) for a period of one year from the date of delivery. • Coverage for elective contact

VISION SERVICES Vision plans 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.

VISION PLANS All nationwide plans include international coverage. FEP Blue Vision FEP Blue Vision is offering an insured vision plan that is underwritten by the local Blue Cross/Blue Shield

FEDVIP NationwideVision Rates BIWEEKLY PREMIUM

MONTHLY PREMIUM

Plan Name

Telephone & Website

Plan Option

SelfOnly

FEP BlueVision

888-550-2583 fepblue.org

Standard

$3.69

$7.36

$11.05

$8.00

$15.95

$23.94

High

$4.67

$9.33

$14.01

$10.12

$20.22

$30.36

$2.92

$5.69

$8.47

$6.33

$12.34

$18.35

$4.15

$8.08

$12.04

$8.99

$17.51

$26.08

Standard

$3.67

$7.31

$10.98

$7.94

$15.84

$23.78

High

$6.38

$12.76

$19.14

$13.83

$27.64

$41.47

UnitedHealthcare Vision Plan

VSP (Vision Service Plan)

866-249-1999 Standard TTY: 800-524-3157 myuhcvision.com/fedvip High 800-807-0764 choosevsp.com

Self Self SelfPlus One and Family Only

Self Self Plus One and Family

DECEMBER 2012 | NARFE

lished fee schedule. lenses and medically necessary contact • Low-vision services are offered, lenses is offered. and members can receive discounts on • FEP Blue Vision’s High option prolaser vision correction. vides out-of-network benefits based • UnitedHealthcare Vision offers on a fee schedule. prosthetic eye replacement on a life• There are no out-of-network bentime maximum basis. efits under FEP Blue Vision’s Standard • Coverage for elective contact option. lenses and medically necessary contact UnitedHealthcare Vision Plan lenses is offered. UnitedHealthcare Vision is offering Vision Service Plan (VSP) an insured vision plan. UnitedHealthVSP is offering an insured vision care Vision has been providing vision plan. VSP is the nation’s largest notservices for more than 40 years and for-profit eye-care benefits and servcurrently has more than 17 million ices provider. With more than 55 milmembers nationwide. lion members, one in six people in the • UnitedHealthcare Vision will pay States has VSP coverage. In out-of-network, limited access in- 2:57United UHC3454 FedNARFEad_Layout 1 and 8/14/12 PM Page 1 2009, Synovate, a global market reternational benefits based on a pub-

search firm, ranked VSP “Highest in Overall Member Satisfaction” among national vision plans. • VSP will pay international benefits based on a published fee schedule. • VSP offers an Eye Health Management program, which complements disease management and wellness initiatives, and concentrates on diseases such as diabetes, glaucoma and macular degeneration. • Coverage for elective contact lenses and medically necessary contact lenses is offered. • VSP provides an out-of-network benefit. • Members can receive discounts on laser vision correction.

Affordable Progressives Are Here. The average retail price for progressive lenses, such as deluxe and platinum, is $440.00. However, if you’re enrolled in a High Option Plan from UnitedHealthcare Vision, these same lenses will cost only a $65.00 copay! Whatever your individual or family need is we have an industry-leading vision plan for you. FEDVIP Open Season: November 12 -December 10

2013

www.myuhcvision.com/fedvip 1-866-249-1999

NARFE | DECEMBER 2012

UnitedHealthcare Vision® coverage provided by Spectera, Inc. ©Spectera, Inc.

PEN SEASON REPORT DENTAL SERVICES Dental plans provide a comprehensive range of services. Services are divided by four categories, as follows: • Class A (Basic) services, which in-

clude 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

FEDVIP Nationwide Dental Rates BI-WEEKLY PREMIUM

Plan Name

Rating Region

SelfOnly

Aetna PPO

High (In- and Out-ofNetwork benefits)

1 2 3 4 5

$12.48 $13.74 $14.63 $16.14 $17.52

$24.95 $27.48 $29.25 $32.27 $35.05

$37.43 $41.22 $43.87 $48.41 $52.57

$27.04 $29.77 $31.70 $34.97 $37.96

$54.06 $59.54 $63.38 $69.92 $75.94

$81.10 $89.31 $95.05 $104.89 $113.90

GEHA PPO

Standard (In- and Out-ofNetwork benefits)

1 2 3 4 5

$9.00 $9.89 $11.24 $12.13 $13.47

$18.00 $19.78 $22.46 $24.25 $26.94

$27.02 $29.67 $33.69 $36.38 $40.40

$19.50 $21.43 $24.35 $26.28 $29.19

$39.00 $42.86 $48.66 $52.54 $58.37

$58.54 $64.29 $73.00 $78.82 $87.53

GEHA PPO

High (In- and Out-ofNetwork benefits)

1 2 3 4 5

$15.25 $16.77 $19.04 $20.56 $22.84

$30.50 $33.54 $38.09 $41.12 $45.69

$45.76 $50.35 $57.13 $61.71 $68.56

$33.04 $36.34 $41.25 $44.55 $49.49

$66.08 $72.67 $82.53 $89.09 $99.00

$99.15 $109.09 $123.78 $133.71 $148.55

MetLife PPO

Standard (In- and Out-ofNetwork benefits)

1 2 3 4 5

$8.57 $9.28 $10.30 $11.44 $12.56

$17.17 $18.57 $20.56 $22.87 $25.12

$25.76 $27.86 $30.86 $34.30 $37.70

$18.57 $20.11 $22.32 $24.79 $27.21

$37.20 $40.24 $44.55 $49.55 $54.43

$55.81 $60.36 $66.86 $74.32 $81.68

MetLife PPO

High (In- and Out-ofNetwork benefits)

1 2 3 4 5

$15.82 $17.70 $19.30 $20.89 $23.39

$31.63 $35.43 $38.56 $41.74 $46.78

$47.41 $53.12 $57.85 $62.61 $70.16

$34.28 $38.35 $41.82 $45.26 $50.68

$68.53 $76.77 $83.55 $90.44 $101.36

$102.72 $115.09 $125.34 $135.66 $152.01

United Concordia PPO

High (In- and Out-ofNetwork benefits)

1 2 3 4 5

$14.10 $16.19 $17.59 $18.98 $20.46

$28.17 $32.34 $35.13 $37.90 $40.91

$42.27 $48.53 $52.71 $56.89 $61.36

$30.55 $35.08 $38.11 $41.12 $44.33

$61.04 $70.07 $76.12 $82.12 $88.64

$91.59 $105.15 $114.21 $123.26 $132.95

Self Self Plus One & Family

MONTHLY PREMIUM

Option

SelfOnly

Self Self Plus One & Family

DECEMBER 2012 | NARFE

as gingivectomy, major restorative services such as crowns, oral surgery, bridges and prosthodontic services such as complete dentures. • Class D (Orthodontic) services with up to a 24-month waiting period. In areas where dental plans do not have adequate provider access, the plans must provide payment based on the standard prevailing health care fees or pay benefits based on their plan allowance.

NATIONWIDE DENTAL PLANS All nationwide plans include international coverage. Aetna Plan Type: Preferred Provider Organization (PPO) Aetna has a long-standing relationship with the federal government, serving as the governmentwide medical indemnity carrier when the FEHBP was first established. It is currently one of the larger HMO plans participating in the FEHBP. It currently provides some dental services to all of its federal members as part of its medical plan. • Aetna will provide a single High-

option dental plan. • In addition to the in-network benefits offered, Aetna’s dental plan will offer out-of-network benefits based on the American Dental Association fee schedule, using the same payment percentages as for in-network benefits, even in areas where access is adequate. • The Aetna plan has no deductibles. • Orthodontia will be covered after a two-year waiting period for dependents up to age 19. There is a $1,500 per person lifetime maximum on covered orthodontia services. • Aetna members will receive a free add-on discount vision plan. • Aetna will provide a benefit for medically necessary/noncosmetic implants. GEHA Plan Type: Preferred Provider Organization (PPO) Government Employees Health Association, Inc. (GEHA) is the third largest national health plan in the FEHBP. It has been in the program since it was first established. Regarding dental coverage, for nearly 10 years, GEHA has offered a nationwide dental insurance plan, Dental Connection

Plus. GEHA’s Dental Connection Plus plan currently provides coverage to more than 57,000 federal employees. • GEHA will provide two dental options, High and Standard. • Orthodontia will be covered after a two-year waiting period for dependents up to age 19. There is a $1,500 per person lifetime maximum on covered orthodontia services. • Members enrolled in GEHA’s dental plan options will receive the same association benefits as other GEHA plan members, including hearing and vision discounts, at no additional cost. • In addition to in-network benefits, GEHA’s dental plan will offer out-ofnetwork benefits based on the American Dental Association fee schedule, using the same payment percentages as for in-network benefits, even in areas where access is adequate. MetLife Plan Type: Preferred Provider Organization (PPO) MetLife is the largest commercial dental insurance carrier in the United States, serving more than 60,000 companies. Ninety of the top 100 Fortune

FEDVIP Regional Dental Rates BI-WEEKLY PREMIUM

Plan Name Humana

Rating Region

SelfOnly

High (In-Network Benefits Only except for emergency services)

1 2 3 4 5

$9.57 $10.30 $10.37 $14.18 $14.25

$19.12 $20.59 $20.73 $28.36 $28.49

$28.69 $30.89 $31.10 $42.54 $42.74

$20.74 $22.32 $22.47 $30.72 $30.88

$41.43 $44.61 $44.92 $61.45 $61.73

$62.16 $66.93 $67.38 $92.17 $92.60

High

$17.68

$35.32

$53.00

$38.31

$76.53

$114.83

$4.27

$8.53

$11.17

$9.25

$18.48

$24.20

GHI PPO

Self Self Plus One & Family

MONTHLY PREMIUM

Option

SelfOnly

Self Self Plus One & Family

(In- and Out-ofNetwork Benefits)

Triple-S Salud PPO

High (In-Network Benefits Only except for services rendered by orthodontists)

NARFE | DECEMBER 2012

PEN SEASON REPORT 500 companies have selected MetLife to administer their dental benefits. MetLife has a long-standing relationship with the federal government as the administrator of the Federal Employees’ Group Life Insurance Program. • MetLife will provide two dental options, High and Standard. • Orthodontia will be covered after a two-year waiting period for dependents up to age 19. There is a $1,500 (in network) per person lifetime maximum on covered orthodontia services under the Standard option and a $3,500 per person lifetime maximum under the High option. • MetLife’s High Option nonorthodontia annual maximum will increase to $10,000. • MetLife provides an out-of-network benefit at a lower percentage rate. • MetLife will have a deductible for preventative, intermediate and major out-of-network services. • MetLife will provide a benefit for medically necessary/noncosmetic implants. United Concordia Plan Type: Preferred Provider Organization (PPO) United Concordia Companies, Inc. is one of the largest dental benefit administrators in the United States. It is a subsidiary of Highmark, a Pennsylvania licensee of the Blue Cross and Blue Shield Association. United Concordia has administered dental benefit programs for Fortune 500 companies, the federal and state governments, and other well-known customers for more than 30 years. United Concordia serves the 1.7 million members in the TRICARE Dental Program (TDP), the largest fully insured dental program in the world. TDP is available to family members of all active duty uniformed personnel and to Se-

lected Reserve and Individual Ready Reserve members and their families. • United Concordia will provide a single High option dental plan. • There is no deductible associated with United Concordia’s plan. • Orthodontia will be covered after a two-year waiting period for dependents up to age 19. There is a $1,500 per person lifetime maximum on covered orthodontia services. • Benefit design features additional coverage of implant prosthetics and resin crowns. • The plan will provide an out-of-network benefit at a lower percentage rate.

REGIONAL DENTAL PLANS Triple-S Salud Plan Type: Preferred Provider Organization (PPO) Service Area: Puerto Rico Triple-S is Puerto Rico’s largest health insurance provider and has been a health insurance carrier under the FEHBP for more than 40 years. Approximately 93 percent of federal employees through the years have chosen Triple-S as their carrier. TripleS is affiliated with the Blue Cross and Blue Shield Association. • Orthodontia will be covered after a two-year waiting period for dependents up to age 19. There is a $1,500 per person lifetime maximum on covered orthodontia services. • Triple-S does not offer an out-ofnetwork benefit in areas that meet access standards. GHI Plan Type: Preferred Provider Organization (PPO) Service Area: All of New York state, as well as some ZIP codes in Pennsylvania, Connecticut and New Jersey. GHI has a long-standing relationship with the federal government, as a New

York-based regional health insurance carrier. With more than half a million covered patients enrolled in GHI commercial dental programs, including 30,000 FEHBP employees and covered dependents with limited preventative dental care through GHI medical plans, GHI has had a significant New York regional presence in the dental marketplace. • There is an out-of-network benefit even in areas that meet access, which pays benefits up to a schedule maximum. • Orthodontia will be covered after a one-year waiting period for dependents up to age 19. There is a $2,000 per person lifetime maximum on covered orthodontia services. • GHI’s nonorthodontia annual maximum will increase to $2,500. • GHI has added an annual maximum rollover feature to the current benefits. Humana Plan Type: Preferred Provider Organization (PPO) Service Area: All of Alabama, Arkansas, Arizona, California, Colorado, District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Missouri, Mississippi, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia and most of Maryland. • Under Humana, members will pay fixed co-payments for each service, regardless of the amount of the charge. • Humana is the only plan without a waiting period for orthodontia. • Humana has the highest per person annual maximum benefit of any FEDVIP provider: $10,000. • No out-of-network benefit in areas that meet the access standards.

Federal Benefits Service Department DECEMBER 2012 | NARFE

RESCRIPTION DRUG GUIDE 2013

brand name drugs for prescriptions submitted to local pharmacies and mail order services, unless the prescribing physician indicates that the patient is to receive only the brand name medication. To keep prescription drug benefit costs down for the plans, some reduce out-of-pocket costs for generic drugs and raise them for brand name drugs. This will make prescription drugs more costly for enrollees who need life-saving and life-extending medications, which are usually brand name specialty drugs. Some plans cap the yearly amount of out-of-pocket expenses for prescription drugs to keep

n the Federal Employees Health Benefits Program, prescriptions can be filled by health plans through plans’ preferred retail pharmacies, nonpreferred retail pharmacies and a plan’s mail order service. The plans charge coinsurance and/or co-payments for prescription drugs when they are purchased through any of these sources. Some plans provide prescription drug plan benefits even if the plan’s annual deductible is not met. Other plans may have an annual deductible that must be met before the plan begins to pay drug benefits. Health plans will substitute available generic equivalent drugs for

enrollees who need the expensive brand name drugs from possible financial hardship. For enrollees who are covered by Medicare Part A and Part B, some plans waive their own deductibles, coinsurance and co-payments for hospital and medical services. But these waivers do not apply to the prescription drug copayments and/or coinsurance. While there are no plans that waive prescription drug coinsurance and co-payments for Medicare-eligible enrollees, some plans will charge lower coinsurance and co-payment rates for enrollees who are covered by Medicare Part A and Part B. In addition, there are

Prescription Drug Benefits for Selected BENEFITS

APWU – High PPO Non-PPO

BC/BS – Standard PPO Non-PO

GEHA – Standard PPO Non-PPO

Rx Deductible Per Person

None

Rx Deductible Per Family

None

Rx Generic Local Pharmacy

50%

20% / 45%+ 15% Medicare B

Rx Generic Mail Order

$15

N/A

$15

N/A

$15

Rx Generic Mail Order for Medicare Enrollee

$15

N/A

$10 Medicare B

N/A

$15

Rx Brand Local Pharmacy

25%

50%

30%Tier2 / 30%Tier 4

45%+

50% Max $200

50% Max $200+

Rx Brand Mail Order

25%

N/A

$70 / $95 / SDP $80

N/A

50% Max $500

50% Max $500+

Rx Brand Mail Order for Medicare Enrollee

25%

N/A

$70 / $95

N/A

50% Max $500

50% Max $500+

Rx Non-Formulary Local Pharmacy

25%

50%

45%Tier 3

45%+

N/A

Rx Mail Order – Supply Size Per Co-pay

90 days

up to 90 days

N/A

90 days

DECEMBER 2012 | NARFE

some plans that charge Medicare enrollees the same coinsurance and copayments as non-Medicare-eligible enrollees in one option, while charging Medicare enrollees smaller coinsurance and/or co-payment amounts than non-Medicare enrollees in the plan’s other option. Usually, patients will fill orders for short-term prescription drugs, such as antibiotics, at a local pharmacy. They will use mail order services for maintenance drugs, such as medications used to treat high blood pressure, high cholesterol or heart disease, etc. It is wise to compare the prices of medications at the local pharmacies with the cost of

obtaining the medications through mail order services. Many times, the cost of filling a prescription at a local pharmacy is less than the co-payment for using a mail order service. Some plans charge the full mail service copayment even though the actual cost of the prescription drug is less than the co-payment; other plans only charge the cost of the prescription drug if the actual cost of the drug is less for the mail service pharmacy than the copayment. In other words, do not expect the mail service pharmacy to charge less than the co-payment because the local pharmacy has the drug at a lower price.

Some plans have limitations on the amount and frequency of dispensing prescription drugs. Plan members should also be aware of plans that have prior-approval requirements before a prescription can be filled. The general rule for most plans is that refills can be obtained when 75 percent of the current supply is used up. With some plans’ co-payments for brand name drugs increasing on January 1, check your current prescription level to see if you can order a refill before the end of the year and avoid any increase.

Federal Benefits Service Department

Fee-for-Service FEHBP Plans* MHBP – Standard NALC – High PPO Non-PPO PPO Non-PPO

Rural Carrier BP – High PPO Non-PPO

Samba – Standard PPO Non-PPO

None

$200

None

No Limit

None

50%

20%

45% / 45%+

30%

$10

$8 / $8 / $12

N/A

$10

N/A

$15

$10

$4 / $7 / $10

N/A

$10

N/A

$15

30% 50% ($200 max)

30%

45% +

30%

25% ($70 max)

$80 / $120

$43 / 60 day $65 / 90 day

N/A

$30

25% ($150 max)

$80 / $120

$37 / 60 day $55 / 90 day

N/A

$20

25% ($150 max)

50% 50% ($200 max)

45%

45%+

30%

35% ($100 max)

90 days

* Source: www.opm.gov

NARFE | DECEMBER 2012

NARFE News JustPublished:NewNARFE Q&ABook

new edition of NARFE’s popular Questions & Answers book is now available for $10 each. The book contains answers to more than 200 questions submitted by NARFE members on general benefits and retirement topics, such as annuity computations, court-ordered benefits,

health benefits, taxes, the FERS Annuity Supplement, re-employment and more. A bonus section contains reprints of key articles from NARFE magazine. Learn about steps you need to take to ensure that you receive all of the benefits to which you are entitled. This is the 4th edition of the book. The other editions have sold out, so

order today! The $10 purchase price includes shipping and handling. To order your copy, see the order form on p. 31 or order online at www.narfe.org. ■

SilverCircleTotals$118,180

ilver Circle donations totaled $118,180 as of October 15. Donors from July16-October 15 are listed below with their chapter numbers. The program offers a way for members to give to NARFE beyond the

WALL OF FAME ($1,000 OR MORE) Genevieve E. Boguslawski, Chapter 1025, Idaho Louis J. Jurus, Chapter 4, California James T. Phillips, Chapter 102, Pennsylvania

norm. Donors of $25 or more are listed in the magazine and receive a Silver Circle pin. Donors of $1,000 or more have their names engraved on the Wall of Fame at NARFE Headquarters. Use the coupon below to contribute or go online at www.narfe.org. ■

SILVER CIRCLE ($25 OR MORE) CALIFORNIA BRUCE A. BENNETT 1028 FLORIDA RONALD J. VOIGT 0583 TERRENCE GREENWOOD 0717 ANTHONY J. COPPERILL 1683 IOWA KENNETH TECHAU 0133

INDIANA BRYAN RICHARDS 0145 MASSACHUSETTS ROBERT JACOBS 0360 MARYLAND MARCIA SWANSON 1888 MARK NOBLETT 2262

NEW MEXICO MARY E. MCKAY 0182 NEVADA DONALD N. BABB 2167 PENNSYLVANIA RONALD D. SMITH 1855 TEXAS DONALD L. WEBB 1273

VIRGINIA CHARLES CUPPLES 0401 JOHN BANKSON 1159 eNARFE JONATHAN DIMARTINO 2363

Silver Circle Contribution Form

Yes!

I want to be a member of the NARFE Silver Circle. Enclosed is my Silver Circle contribution of $ _____

• 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.

ID # ____________________________________________________________________ (ID # may be found on your NARFE magazine label or your NARFE membership card)

Name ____________________________________________________________________ Address ___________________________________________________________________ City ____________________________________ State ___________ ZIP _____________ J My check is enclosed (please make check payable to NARFE Silver Circle) Silver Circle contributions are not deductible for federal income tax purposes. J Please charge my credit card Card type J Mastercard J Visa J Discover J AMEX J Installment Plan Card # _________________________________________________ Wall of Fame 12-month installment plan Expiration Date_____________________________________________ Name __________________________________________________ Signature ___________________________________________ Date ___________________

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

DECEMBER 2012 | NARFE

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2012ScholarshipWinners

ARFE is proud to present the 2012 NARFE Scholarship winners and their NARFE sponsors. Each student received an award certificate and a $1,000 check for the 2012-2013 school year. Special thanks goes to the NARFE members from all 10 regions who served on the judging teams and to the staff of the Federal Employee Education & Assistance Fund, which administers this program for NARFE. Applications for the next scholarship program will be printed in the February issue of NARFE magazine. Members also can download the application from the NARFE website February-April. (Note: Winners are listed according to the region of their sponsor.)

REGION I Jonathan Brewster, San Diego, CA University of Southern California Grandson of Charles Brewster, Chapter 1790 – NH

Jennifer Carnovale, Massapequa, NY Hofstra University Granddaughter of Otto Krivohlavy, Chapter 471 – NY

Sara Chavarie, Brewster, ME Eastern Maine Community College Granddaughter of Robert Conrad, Chapter 1568 – MA

Dana Lowenthal, E. Northport, NY

Christopher Orr, Vestavia Hills, AL

REGION VI

Corin Greene, East Setauket, NY

University of Alabama Grandson of Robert Orr, Chapter 443 – AL

Jessica Bettis, Malvern, AR University of Arkansas Granddaughter of William Brumley Jr, Chapter 2171 – AR

William E. Macauley Honors College, Queens Grandson of Frank Mascari, Chapter 423 – NV

Kelly Shepherd, Lexington, SC University of South Carolina Honors College Granddaughter of Elizabeth Shepherd, Chapter 87 – SC

Megan Demel, Littlefield, TX

Megan Johnson, Arvada, CO

Baylor University Granddaughter of Brenda Boomer, Chapter 244 – TX

University of Colorado, Colorado Springs Granddaughter of Jackie Johnson, Chapter 16 – CA

Brian Thedy, Rockledge, FL

Anna Hope, Bentonville, AR

Florida State University Grandson of Theresa Griffin, Chapter 1137 – FL

Cottey College Granddaughter of Dale Cassel, Chapter 749 – OK

Samantha Moore, Cedar Creek, TX

Binghamton University Granddaughter of Manuel Myrovitch, Chapter 1264 – NY

REGION IV

Christine Noe, Ambler, PA

University of Evansville Granddaughter of Karen Billhartz, Chapter 1019 – IL

Williams College Granddaughter of Augie Stratoti, Chapter 1540 – NH

Emily Reynolds, Fairbanks, AL Whitman College Granddaughter of Charles Seaman, Chapter 1491 – MA

REGION II Erin Hub, Woodsboro, MD Webb Institute Granddaughter of Olin Nave, Chapter 409 - MD

Megan McConnell, Grand Rapids, MI University of Michigan Granddaughter of James McConnell, Chapter 1734 – MD

Julie Neveleff, N. Potomac, MD University of North Carolina Chapel Hill Grandaughter of Stanley Meiselman, Chapter 581 – MD

Natalie O’Toole, Havertown, PA Cornell University Granddaughter of Joseph O’Toole, National only – PA

Alexandria Billhartz, New Baden, IL

Abigail Kosberg, Wildwood, IL Lawrence University Granddaughter of Susan Nelson, Chapter 371 – WI

Joseph L’Huillier, Sobieski, WI University of Wisconsin Grandson of Elizabeth L’Huillier, Chapter 1900 – MI

Shannon Montague, Brecksville, OH University of Notre Dame Daughter of Vickie Montague, Chapter 2264 – OH

Alison Von Deylen, Weldon Spring, MO Vanderbilt University Granddaughter of Thomas Von Deylen, Chapter 223 – IN

Morgan White, Riley Township, MI Grand Valley State University Granddaughter of Barbara White, Chapter 1532 - MI

REGION V

Mary Woloschuk, Johnstown, PA

Mathew Briggs, Leavenworth, KS

St. Francis University Daughter of Robert Woloschuk, Chapter 1130 – PA

Manhattan Christian College Grandson of Sylvester Nyhart, Chapter 27 – KS

David Yanich, Steelton, PA

Sarah Henderson, Olathe, KS

Indiana University of Pennsylvania Grandson of Margaret Monier, Chapter 102 – PA

REGION III Lauren Anderson, Braxton, MS William Carey University Granddaughter of Shirley Stevens, Chapter 1766 – MS

Chelsea Fitzhugh, Albany, GA University of Georgia Granddaughter of Bernice Hamilton, Chapter 643 – GA

Mercedes Flowers, St. Petersburg, FL Harvard University Granddaughter of Rosalina Gutierrez, Chapter 252 – PR

Texas A&M University Granddaughter of Joyce Hoffman, Chapter 228 – TX

Patrick Odenborg, El Paso, TX Texas A&M University Son of Kevin Odenborg, Chapter 1495 – TX

Sydney Stigall, New Braunfels, TX Texas Lutheran University Granddaughter of David Morin, Chapter 1320 – TX

REGION VII William Coffey, Pensacola, FL University of Miami Grandson of Bill Coffey, Chapter 80 – NM

Maisa Cook, Albuquerque, NM University of West Alabama Daughter of Lisa Cook, Chapter 2363 – NM

Alex Serebransky, Pelham, NY Duke University Grandson of Enid Serebransky National only – AZ

Cynthia Spragg, Gillette, WY University of Wyoming Granddaughter of Elsie Peters, Chapter 452 – WY

Rebecca Taber, Grand Junction, CO Bethel College Daughter of Mark Taber, Chapter 351 – CO

Holly Trevino, Sierra Vista, CA

Cochise College Daughter of Rodrigo Trevino, Chapter Kansas State University Granddaughter of Ethel Londis, Chapter 1400 – AZ 1763 – KS

Wyatt Lien, Ulen, MN

REGION VIII

Minnesota State University Moorhead Grandson of Karen Lien, Chapter 119 – MN

University of California, Los Angeles Son of Terry Eto, Chapter 50 – CA

Rachel Maxwell, St. Louis, MO Purdue University Granddaughter of Richard Rosenkoetter, Chapter 1240 – MO

Stephanie Pemberton, Eldon, MO University of Missouri - Columbia Granddaughter of Faye Beasley, Chapter 2096 – MO

Kelsey Peters, Plainfield, IA Wartburg College Granddaughter of Neil Bolin, Chapter 170 - IA

Tremaine Eto, San Jose, CA Jeanine Fiser, Hanford, CA California State University, Fresno Granddaughter of Carmen Rubio, Chapter 2139 – CA

Hannah Giardina, Las Vegas, NV University of Oregon Granddaughter of Nadyne Giardina, Chapter 2033 – NV

Sarah Gray, Laguna Niguel, CA California Polytechnic State University, San Luis Obispo Granddaughter of Robert Connell, Chapter 877 – CA

REGION IX Keegan Amrine, Gig Harbor, WA American University Grandson of James Hagerty, Chapter 237 – WA

Gretchen Cates-Carney, Tacoma, WA Bates College Granddaughter of Lawrence Cates, Chapter 238 – WA

Susan Heuscher, Chotau, MT Gonzaga University Daughter of Clifford Heuscher, Chapter 107 – MT

Hannah Johnson, Kirkland, WA University of Washington, Seattle Granddaughter of Raymond Johnson, Chapter 1404 – WA

Eric Larson, Spokane, WA Brigham Young University, Provo Son of Mark Larson, Chapter 32 – WA

Krystina Trinidad, San Antonio, TX Texas A&M University, Corpus Christi Granddaughter of Loys Parrish, Chapter 118 – OR

REGION X Alexander Balenger, Burke, VA James Madison University Grandson of Carol Balenger, Chapter 893 – VA

Jessica Bush, Horse Cave, KY Western Kentucky University Granddaughter of Rebecca Bush, Chapter 1269 – KY

Sydney LaFreniere, Oak Ridge, TN University of Tennessee, Martin Daughter of Michael LaFreniere, Chapter 2363 – TN

Michael Phillips, Coalton, WV West Virginia University Grandson of Sandra Senic, Chapter 2287 – WV

Pamela Schwartz, Frankfort, KY Cornell University Granddaughter of Shirley Lewis, Chapter 2229 – KY

Nathan Weinbaum, Lake Worth, FL Florida State University Grandson of Francis Zaik, Chapter 1158 - NC

INTERNATIONAL Stephen Dering, Clifton Park, NY Quinnipiac University Son of Robert Dering, Saskatoon, Saskatchewan, Canada

DECEMBER 2012 | NARFE

Active and Retired Federal Employees ...

Learn about our ELECTRO NIC MEMBERSHIP at

JOIN NARFE TODAY! 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?

eNARFE.org

Three Easy Ways To Join 1. 2. 3.

N A R F E M E M B E R S H I P A P P L I C AT I O N

Apt./Unit ________________________________________

I am a (check all that apply) Active Federal Employee Active Federal Employee Spouse Annuitant Annuitant Spouse Survivor Annuitant Please enroll my spouse for an additional $45. Spouse’s Full Name __________________________

City _______________________ State _____ ZIP ________

Spouse’s Date of Birth ______/______/ __________

YES. I want to join NARFE. Please start my individual one-year membership for the first-year dues of $45. Mr. Mrs. Miss Ms. Full Name ________________________________________ Street Address ____________________________________

Phone (__________) _______________________________ Email____________________________________________ Date of Birth _________ /_________ / _______________ dd

yyyy

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.

CALCULATE YOUR DUES CHAPTER AFFILIATION $45.00 x ___________ = ______________ First-Year Dues # Joining Total Dues (First-year dues include national and chapter dues.) PAYMENT OPTIONS Check, Money Order or Bill Pay (Payable to NARFE) Bill me (NARFE membership will start when payment is received.) Charge my: MasterCard VISA Discover American Express

(If known, otherwise NARFE will enroll you in the chapter closest to your ZIP code.) Enroll me in Chapter # ______ ______ ______ ______ 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 __________________________________

Card No. _____________________________________

Recruiter’s Membership ID __________________________

Expiration Date _________ /_________

Recruiter’s Chapter Number _________________________

yyyy

Name on Card _________________________________ Signature _____________________________________ Date _________________________________________

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

National Active and Retired Federal Employees Association 606 N. Washington St., Alexandria, VA 22314-1914

www.narfe.org

800-627-3394

rr@narfe.org

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

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

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

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

–

Civil Service Annuity Number

–

C S

–

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

Mr. Mrs. Miss Ms. Full Name _______________________________________

NARFE MEMBERSHIP INFORMATION

Street Address ___________________________________

NARFE Membership ID ____________________________________

Apt./Unit________________________________________

NARFE Chapter Number____________________________________

City _________________________ State _____ ZIP _____

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

Phone (__________) ______________________________

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

Email ___________________________________________ Date of Birth _________ /_________ / ____________________ dd

Spouse’s Name ___________________________________________ Spouse’s Membership ID ___________________________________

yyyy

AUTHORIZATION (Withholding will begin in 60-90 days). No payment should be forwarded with application. I authorize the United States Office of Personnel Management to make appropriate deductions from my annuity payments, not to exceed the amount certified by the National Active and Retired Federal Employees Association as the amount of dues for which I am annually obligated, in accordance with elections I make below, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I make below: Please allow 60-90 days for processing. I understand that this authorization shall be valid until NARFE receives and processes my written notice of cancellation in accordance with its agreement with the Office of Personnel Management and that any disputes regarding this authorization shall be a matter between NARFE and myself. I hold the Office of Personnel Management harmless for any erroneous allotment deduction made pursuant to this authorization. ___________________________________________________________________________ _______________________________

Signature of Annuitant or Survivor-Annuitant

Date

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

DW-2 (08/12)

Out & AW bout ith the Chapters Visit our online photo gallery at

www.narfe.org. Sign in and click on NARFE Publications.

ADOPT-A-HIGHWAY. Chapter 1159 in Annandale,VA, has started to participate in Virginia’s Adopt-A-Highway program to clean up local streets. Pictured at the chapter’s first cleanup are, from left: Wilton Ward, Mary Lou Vroman, Margaret Breinholt, Ann Trotter, Carol Lutz, Barbara Cornell, Jack Bagnulo and Mary Ann Munley. Not pictured is Doug Jones, chapter president.

ALZHEIMER’S WALK. Members of Chapter 443 in Huntsville, AL, participated in the local Alzheimer’s Memory Walk. From left: Ray Farmer, Kay Lindsey, Dave Nicolas, Alzheimer’s Chair Judi Moon, Lloyd Marks, David Bacchus, Cheryl Patterson, David Trenkle, Eleanor Kay and Louise Garman. Not pictured is Peggy McMillan.

To submit a photo: Email it to rl@narfe.org or send it by postal mail to NARFE Headquarters, ATTN: Out & About.

Third Quarter 2012 Recruitment Results In the first nine months,8,330 new members joined NARFE.

– Jacqueline Johnson-Bryant, Recruitment and Retention Assistant REGION I

REGION V Iowa . . . . . . . . . . . .104 Kansas . . . . . . . . . .107 Minnesota . . . . . . .153 Missouri . . . . . . . . .124 Nebraska . . . . . . . . .41 North Dakota . . . . .46 South Dakota . . . . . .54 Total . . . . . . . . .629

REGION IX Alaska . . . . . . . . . . . .53 Idaho . . . . . . . . . . . .37 Montana . . . . . . . . . .35 Oregon . . . . . . . . . . .79 Washington . . . . . .158 Total . . . . . . . . .362

REGION IV Illinois . . . . . . . . . . .214 Indiana . . . . . . . . . .108 Michigan . . . . . . . . .137 Ohio . . . . . . . . . . . .170 Wisconsin . . . . . . .108 Total . . . . . . . . .737

Connecticut . . . . . . .43 Massachusetts . . . .110 Maine . . . . . . . . . . . .29 New Hampshire . . .33 New York . . . . . . ..220 Rhode Island . . . . . . .17 Vermont . . . . . . . . . .16 Total . . . . . . . . .468

REGION II Dist. of Columbia . . .84 Delaware . . . . . . . . .39 Maryland . . . . . . . .580 New Jersey . . . . . .145 Pennsylvania . . . . . .373 Total . . . . . . . .1,221

REGION VIII California . . . . . . . .510 Guam . . . . . . . . . . . . .7 Hawaii . . . . . . . . . . .60 Nevada . . . . . . . . . . .37 Philippines . . . . . . . . .0 Total . . . . . . . . .614

REGION X Kentucky . . . . . . . . 105 North Carolina . . . 177 Tennessee . . . . . . . . . 87 Virginia . . . . . . . . . . 683 E-Chapter (eNARFE) 1,282

West Virginia . . . . . . 70 Total . . . . . . . . 2,404

REGION VII Arizona . . . . . . . . .115 Colorado . . . . . . . .154 New Mexico . . . . . .56 Utah . . . . . . . . . . . . .25 Wyoming . . . . . . . . .25 Total . . . . . . . . .375

NARFE | DECEMBER 2012

REGION III

REGION VI Arkansas . . . . . . . . . .55 Louisiana . . . . . . . . .53 Oklahoma . . . . . . . .83 Panama . . . . . . . . . . . .1 Texas . . . . . . . . . . .349 Total . . . . . . . . .541

FOREIGN 15

Alabama . . . . . . . . .124 Florida . . . . . . . . . .397 Georgia . . . . . . . . .254 Mississippi . . . . . . . .66 Puerto Rico . . . . . . .21 South Carolina . . . .102 Total . . . . . . . . . . .964

NARFE Perks NARFE 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 below and encourages its members to shop and compare before making a decision on any financial matter.

MOVING SERVICES

INSURANCE

HEARING BENEFITS

NARFE INSURANCE SERVICES NARFE MEMBER HOMEBENEFITS 1-800-666-9203 http://narfe.myhomebenefits.com • Earn thousands in cash-back rewards when you buy or sell a home* • Shop competitive mortgage rates, receive discounts on closing costs, plus take advantage of your VA Loan Benefits • Receive preferred pricing on interstate moving services with the nation’s most trusted moving company – Allied Van Lines! *State restrictions apply. Call or visit website for details.

BEKINSVAN LINES 1-800-456-6832 (M-F, 8 a.m.-5 p.m. CT) narfe@bekins.com All NARFE members will receive discounted pricing for all interstate shipments. Discount will apply to packing and moving services and valuation protection. All intrastate shipments, locals and international moves will be competitive in cost based on your geographical location. Mention you are a NARFE member and transportation agreement #00930.

VACATION RENTALS

Government Employees Travel Opportunities® 877-867-3639 Offers government employees, retirees and their families 7-night stays for only $349 on accommodations worldwide. Book online at www.getravelop. com/narfe and save on your next vacation stay.

1-800-233-5764 Designed and administered by Marsh U.S. Consumer, a service of Seabury & Smith, Inc., exclusively for NARFE members: Senior Whole Life, Term Life, Medicare Supplements, Hospital Income Plan, Short Term Recovery Insurance, Pet Insurance, Accidental Death & Dismemberment, Cancer Care, Enhanced Dental Insurance and Long Term Care. Go to www.narfeinsurance.com for more information on these programs.

GEICO:1-800-368-2734 NARFE members with good driving records may be eligible for quality automobile insurance from GEICO. Ask about the NARFE discount available to members in many states. Call today for your free, no-obligation rate quote. Be sure to mention that you’re a NARFE member! • Discount amount varies in some states • Discount not available in all states or in all GEICO companies • One group discount applicable per policy.

Two discount programs to choose from: ValueAdd® or MemberPlus®. Similar to a warehouse membership, MemberPlus saves hundreds more for a $108 yearly membership.

MemberPlus also includes: • 45-day, money-back guarantee on membership fee and all purchases • 48 batteries, 3-year warranty, and onetime loss and damage for 3 years (small manufacturer deductible applies) on each purchased hearing aid • Guest membership for up to four extended family members (siblings, parents, etc.) for only $79 each • Combine with an existing health plan hearing benefit to maximize savings Visit TruHearingMemberPlus.com for more information, or call 877-360-2442 Mon-Fri, 9 a.m.-9 p.m. East Coast Time

EDUCATION

EMERGENCY SERVICES SINCE 1974 1-800-423-3226 Medical Air Services Association has been the industry leader in prepaid emergency assistance services for more than 30 years. NARFE members have experienced MASA’s “peace of mind” services since 2001. Now NARFE members are entitled to even more: air ambulance transportation, helicopter transportation, ground ambulance, vehicle return, mortal remains transport, and much more! Call MASA Today. It Could Save Your Life!

Want to earn your associate’s degree before you transfer to a four-year school? Ivy Bridge College offers a variety of degree programs that will help put you on the right track. No matter which program you choose, an education with Ivy Bridge will provide you with a solid foundation for a rewarding future. NARFE members and their families can enjoy an exclusive 5 percent savings on tuition at Ivy Bridge, a unique online institution that provides a highly supported pathway to a bachelor’s degree. To learn more, call 877-615-9246 or visit http://ivybridge.tiffin.edu/narfe.

DECEMBER 2012 | NARFE

HOTELS

CAR RENTALS

CREDIT UNION

CHOICE HOTELS INTERNATIONAL With 6,000 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. Join the Choice Privileges® rewards program and earn points with every qualifying stay toward free nights, Airline Rewards, gift cards and more. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer. Advance reservations required. To book, visit choicehotels.com or call 800-258-2847.

ALAMO Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call 1-800-462-5266 and reference Contract ID 262544.

NATIONAL You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation call National Car Rental at 1-800-CAR-RENT® and reference Contract ID 5282909.

NARFE’s OFFICIAL CREDIT UNION As a member of NARFE, you have the privilege of joining NARFE Premier Federal Credit Union, which has been serving members since 1935. We offer extensive services at competitive rates to members nationwide. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. For more information, call 800-3281500, e-mail jparish@narfepremierfcu. org or visit us at NARFEpremierfcu.org.

CREDIT CARD AVIS:1-800-331-1441

WYNDHAM HOTEL GROUP As a member of NARFE, you will receive up to 20% off the “Best Available Rate” at participating locations when you travel. Call and give agent your special discount ID number, 8000002694, at time of booking to receive discount. Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now. Call our special memberbenefits hotline 1-877-670-7088 and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®.

NARFE | DECEMBER 2012

The employees/owners of Avis offer guaranteed low rates and quality services to members of NARFE. Mention ID# A991900.

HEALTH SCREENING

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

Bank of America now offers the officially approved credit card program for NARFE, featuring the Platinum Plus® MasterCard® with WorldPoints. This is the only credit card that helps support NARFE every time you use it to make a purchase–at no additional cost to you. Call toll-free 1-866-438-6262 Use NARFE’s full name, not NARFE.

NARFE MERCHANDISE NARFE GENERAL STORE

Order Official NARFE name badges, customizable NARFE logo products and plaques. www.narfegeneralstore.com Call toll-free 855-99NARFE (855-996-2733)

For the Record Stocks React to Slowdown Fears ByTracey Ray

ugust and September were great months for the stock markets, and October started out in a similar fashion. Through October 17, the C Fund had risen 1.5 percent. Then, corporations began reporting third-quarter earnings. When McDonaldâ&#x20AC;&#x2122;s reported that third-quarter sales were weak across all of its major markets, stocks tumbled. The weak results were considered significant because McDonaldâ&#x20AC;&#x2122;s operates in so many countries, thus hinting at a widespread slowdown. Stocks posted their biggest one-day decline in four months. Fears of a slowdown in China added to the negative sentiment, and stocks drifted lower for the rest of the month. Superstorm Sandy forced a two-day closure of the U.S. equity markets, but the October 31 reopening was uneventful.

Tracey Ray is chief investment officer of the Thrift Savings Plan.

RETIREE COLA FOR 2013 See page 8.

Thrift Savings Plan Investments* G Fund Month November 0.14% 2011 December 0.15% 2012 January 0.13% February 0.12% March 0.14% April 0.15% May 0.14% June 0.11% July 0.12% August 0.11% September 0.10% October 0.12% Last 12 Months 1.53%

F Fund 0.01% 1.01% 0.88% 0.05% (0.61%) 1.12% 0.91% 0.05% 1.38% 0.07% 0.15% 0.20% 5.33%

C Fund (0.21%) 1.04% 4.50% 4.34% 3.30% (0.62%) (5.99%) 4.13% 1.40% 2.25% 2.57% (1.86%) 15.32%

S Fund (0.51%) (0.04%) 7.59% 3.99% 2.30% (0.71%) (6.91%) 3.25% (0.62%) 3.57% 2.51% (1.31%) 13.11%

Month L Income 2011 November 0.02% December 0.20% 2012 January 1.18% February 0.98% March 0.54% April 0.01% May (1.38%) June 1.04% July 0.37% August 0.63% September 0.62% October (0.11%) Last 12 Months 4.15%

L 2020 (0.34%) 0.11% 3.03% 2.53% 1.23% (0.38%) (4.20%) 2.72% 0.63% 1.57% 1.52% (0.45%) 8.03%

L 2030 (0.49%) 0.09% 3.77% 3.10% 1.49% (0.52%) (5.23%) 3.32% 0.71% 1.94% 1.87% (0.60%) 9.51%

L 2040 (0.62%) 0.07% 4.34% 3.54% 1.68% (0.63%) (6.00%) 3.77% 0.75% 2.23% 2.12% (0.71%) 10.58%

I Fund (2.46%) (2.03%) 5.36% 5.14% 0.13% (1.87%) (11.40%) 7.08% 0.56% 3.29% 2.96% 0.85% 6.41% L 2050 (0.78%) (0.01%) 4.87% 3.99% 1.86% (0.78%) (6.85%) 4.27% 0.78% 2.51% 2.38% (0.80%) 11.44%

*This chart is provided as a service to NARFE members who enrolled in the Thrift Savings Plan while employed by the federal government. Retirees are not eligible for enrollment. These returns are net of the effect of accrued administrative expenses and investment expenses/costs. Percentages in ( ) are negative. Source: tsp.gov.

NARFE Statement of Ownership, Management, and Circulation 1. Publication Title: NARFE 2. Publication Number: 4632-60 3. Filing Date: Sept. 28, 2012 4. Issue Frequency: Monthly 5. Number of Issues Published Annually: 12 6. Annual Subscription Price: $45 7. Address of Known Office of Publication: National Active and Retired Federal Employees Association, 606 N.Washington Street, Alexandria,VA 22314-1914 8. General Business Office of the Publisher: National Active and Retired Federal Employees Association, 606 N.Washington Street, Alexandria,VA 22314-1914 9. Names and Addresses of Publisher, Editor, and Managing Editor: Publisher: National Active and Retired Federal Employees Association, 606 N.Washington Street, Alexandria,VA 22314-1914 Editor: Margaret M. Carter, 606 N.Washington Street, Alexandria,VA 223141914 Managing Editor: Not Applicable 10. Owner: National Active and Retired Federal Employees Association, 606 N. Washington Street, Alexandria,VA 22314-1914 11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages or Other Securities: None 12. Tax Status: Has Not Changed During Preceding 12 Months 13. Publication Title: NARFE 14. Issue Date for Circulation Data Below: October 2012 15. Extent and Nature of Circulation:

Average No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date A. Total Number of Copies (Net Press Run) 286,547 275,275 B. Paid Circulation 1. Mailed Outside-County Paid Subscriptions Stated on PS Form 3541 275,849 261,305 2. Mailed In-County Paid Subscriptions Stated on PS Form 3541 0 0 3. Paid Distribution Outside the the Mails including Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid Distribution Ouside USPS 2,012 1,951 4. Paid Distribution by Other Classes of Mail Through the USPS 0 0 C. Total Paid Distribution 277,861 263,256 D. Free or Nominal Rate Distribution 1. Free or Nominal Rate Outside-County Copies included on PS Form 35410 0 0 2. Free or Nominal Rate In-County Copies included on PS Form 3541 0 0 3. Free or Nominal Rate Copies Mailed at Other Classes Through the USPS 1,318 1,958 4. Free or Nominal Rate Distribution Outside the Mail 6,868 9,561 E. Total Free or Nominal Rate Distribution 8,186 11,519 F. Total Distribution 286,047 274,775 G. Copies Not Distributed 500 500 H. TOTAL 286,547 275,275 I. Percent Paid and/or Requested Circulation 97.1 95.8 16. Publication of Statement of Ownership: December 2012 17. I certify that all information furnished on this form is true and complete. Margaret M. Carter, Editor/Sept. 28, 2012

DECEMBER 2012 | NARFE

Technology Breakthrough

Safe, comfortable bathing from Jacuzzi®

Finally... Jacuzzi makes bathing safe and affordable again The Jacuzzi® Walk-In tub is luxurious, feature-packed and affordable here is nothing like the simple pleasure of taking a warm bath. The cares of the day seem to fade away, along with the aches and pains of everyday life. Unfortunately for many aging Americans with mobility issues, slipping into a bath can result in slipping onto the floor. The fear of falling has made the simple act of bathing and its therapeutic benefits a thing of the past… until now. firstSTREET has partnered with Jacuzzi®, the company that perfected hydrotherapy. Together, they’ve created a walk-in tub that offers more than just safe bathing, peace-of-mind and independence, it can actually help you feel better. Unlike traditional bathtubs, the Jacuzzi® Walk-In Tub features a leakproof door that allows you to simply step into the tub rather than stepping precariously over the side. It features a state-of-the-art acrylic surface, a raised seat and the controls are within easy reach. No other Walk-In Tub features the patented Jacuzzi® PointProTM jet system. These high-volume, low-pressure pumps feature a perfectly balanced water to air ratio to massage thoroughly

yet gently. Some swirl, some spiral, some deliver large volumes of water and others target specific pressure points. They are all arranged in precise locations designed to deliver a therapeutic massage, yet they are fully adjustable so that your bathing experience can be completely unique.

What To Look For in a Walk-In Tub: Five major considerations to help make an informed decision before buying a Walk-In Tub: ¼ Quality - A walk-in tub is a major investment. You want to find a quality tub that will last for decades. Look for one that’s 100% leakproof, mold-resistant, full metal frame construction and one that’s American made. ¼ Warranty - Ask for a lifetime “no leak guarantee.” The best tubs offer a lifetime warranty on both the tub and the operating system.

Jacuzzi®

Other Brands

SEE THE JACUZZI® DIFFERENCE Laboratory tests clearly show how Jacuzzi outperforms other manufacturers’ jet systems, producing a deeper and wider plume of revitalizing bubbles. Best of all, it doesn’t cost you a penny more!

Why spend another day wishing you could enjoy the luxury and pain-relieving benefits of a safe, comfortable bath? Call now and you’ll get an unsurpassed lifetime warranty. Knowledgeable product experts are standing by to help you learn more about this product. Call today!

¼ Pain Relieving Therapy - Find a tub that has both water and air jet therapy to soak away your aches and pains preferably with a perfectly balanced water to air mix. ¼ Comfort - Insist on ergonomic design, easy-to-reach controls. ¼ Endorsements - Only consider tubs that are ETL or UL listed. Also look for a tub tested to IAPMO (International Association of Plumbing and Mechanical Officials) standards and that’s USPC (Universal Spa Plumbing Code) Certified.

New! Jacuzzi®

Walk-In Tub

• Jacuzzi® PointProTM Jet System

For information call:

1-888-618-9712 Call now Toll-Free and mention your special promotion code 45828. Third-party financing available with approved credit. Not Available in Hawaii and Alaska

80427

• Low Threshold Step

Tan

Not $5 5!

lik outdoe some fa mou or o Unde u$ tfitter p s r 20 a rice! from Haba pair nd!

were 2 for 49.98 Home heating costs are only going up! But for every degree you lower your thermostat for 8 hours, your bill is reduced by 1%! So put on our top-to-toe warm Ice House™ Flannel-Lined Pants, turn down that thermostat 4 or 5 degrees & SAVE, SAVE, SAVE! • Two Flannel-lined front, & two back pockets • Rugged outer Cotton/ Polyester twill • 100% Cotton lining • Pre-shrunk for perfect fit • Full S-T-R-E-T-C-H waist with snap closure and zip-fly • Hefty belt loops • Under $20!

FULL STRETCH WAIST!

Black

Grey Heather

Navy #1 Bargain Place Jessup, PA 18434-1834

Navy

2 for 39.98 3 for 56.97

Haband #1 Bargain Place, Jessup, PA 18434-1834 Burgundy

Green

Black

Rust

Visa

Ice House Blue

WHAT

Big & Tall Men: 2XL(50-52) 3XL(54-56) 4XL(58-60) LT(42-44) XLT(46-48) 2XT(50-52) 3XT(54-56)

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HOW

TAN Ø2 BLACK Ø1 Ø3 NAVY 6J GREY HEATHER 8V ICE HOUSE BLUE Imported

Shirt Sizes: Regular: S(34-36) M(38-40) L(42-44) XL(46-48)

AmEx

Card #__________________________________________Exp.: _______/_______ Mr. Mrs. Ms._________________________________________________________ Address______________________________________________ Apt. # _________ City & State ________________________________________ Zip ______________ Phone/Email__________________________________________________________ Shirts On-Line Quick Order: Pants On-Line Quick Order: WHAT INSEAM? MANY? 7FX–Ø1N2A WAIST?

Choice of 5 colors, made of durable, extra-soft cotton & polyester brushed flannel! Adjustable cuffs & two handy chest pockets. Machine wash & dry. All Shirt Sizes Same Low Price!

Discover ® Network

ORDER YOUR NORMAL WAIST SIZE!

Waists: 32 34 36 38 40 42 44 *Big Men ($5 more per pair): 46 48 50 Inseams: XS(25-26) S(27-28) M(29-30) L(31-32) XL(33-34)

7FX–1255M WHAT SIZE? MANY?

Ø3 PQ

BURGUNDY

BLACK GREEN RUST

JT 11

NAVY

Send _____ shirts & _____ pants. I enclose $________ purchase price plus $5.99 shipping. In GA add sales tax. 100% Satisfaction Guaranteed or Full Refund of Merchandise Purchase Price!

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 Go Online: www.Haband.com/bestdeals