May 2021 NARFE Magazine by NARFE

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

May 2021 VOLUME 97 ★ NUMBER 4

P. 20

When Disaster Strikes

P. 30 Divorce Considerations for Feds

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Contents MAY 2021

COVER STORY PAGE 20

FEATURE PAGE 30

WHEN DISASTER STRIKES: Learn how two federal employees, and the agencies they work for, help Americans prepare for and deal with emergencies. SPLITTING UP AND DIVIDING ASSETS: Federal employees and annuitants contemplating divorce should be aware of factors related to their federal benefits that are often overlooked.

Washington Watch

Columns

6 Congress Honors NARFE’s

4 From the President

Centennial

7 House Subcommittee

Considers Recommendations to Improve the Federal Workforce

8 NARFE’s LEGcon21 Is Fast Approaching: Will You Participate?

9 New COVID-19 Relief Package Signed Into Law

9 GAO Identifies High-Risk

Federal Management Issues in 2021 Report

10 President Biden Nominates

Kiran Ahuja for OPM Director

18 Benefits Brief

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

May 2021 VOLUME 97 ★ NUMBER 4

P. 20

When Disaster Strikes

38 Managing Money Departments

14 Questions & Answers 40 For the Record

P. 30 Divorce Considerations for Feds

ON THE COVER Illustration by TGD

42 NARFE News 46 Member Perks 48 The Way We Worked

Connect with us! Visit us online at www.narfe.org Like us on Facebook NARFE National Headquarters Follow us on Twitter @narfehq

NARFE MAGAZINE www.NARFE.org

MAY 2021 VOLUME 97 ★ NUMBER 4

REGIONAL VICE PRESIDENTS

EDITORIAL DIRECTOR Jenn Rafael

REGION I James C. Risner

SENIOR EDITOR Mabel Yu CONTRIBUTING EDITOR Jessica Klement CREATIVE SERVICES MANAGER Beth Bedard ADDITIONAL GRAPHIC DESIGN TGD EXECUTIVE EDITOR Helen Mosher EDITORIAL BOARD Kenneth J. Thomas, Kathryn E. Hensley, Barbara Sido CONTACT US NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Editorial: communications@narfe.org Advertising Sales: Anita Nelson advertising@narfe.org 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 NFBNEWSLINE® service at 866-504-7300 or go to www.nfbnewsline.org. ON DIGITAL AUDIO: Issues of NARFE Magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider. The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

NARFE MAGAZINE MAY 2021

NATIONAL OFFICERS

KENNETH J. THOMAS President; natpres@narfe.org KATHRYN E. HENSLEY Secretary/Treasurer; natsectreas@narfe.org

EXECUTIVE DIRECTOR BARBARA SIDO execdir@narfe.org

(Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 207-540-6233 Email: rvp1@narfe.org

REGION II Gary Roundtree Sr.

(Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 443-929-7045 Email: groundtreesr@comcast.net

REGION III Clarence Robinson

(Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 Email: crobin8145@att.net

REGION IV Robert L. Helfrich

(Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 317-501-1700 Email: rlhelfrich@yahoo.com

REGION V Cindy Reneé Blythe

TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER: CALL (TOLL-FREE) 800-456-8410 OR GO TO www.narfe.org TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:

CALL (TOLL-FREE) 800-456-8410 EMAIL memberrecords@narfe.org OR GO TO www.narfe.org, log in and click on “My Account”

TO REACH A FEDERAL BENEFITS SPECIALIST:

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NARFE HEADQUARTERS

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(Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 785-256-1450 Email: mrsdocbusyb@yahoo.com

REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-660-2784 Email: pappysdad@cobridge.tv

REGION VII Rodney L. Adelman

(Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 623-505-4719 Email: narfe7vp@cox.net

REGION VIII Robert H. Ruskamp (California, Hawaii, Nevada and Republic of Philippines) Tel: 703-628-3234 Email: rvp8@narfe.org

REGION IX Linda L. Silverio

(Alaska, Idaho, Montana, Oregon and Washington) Tel: 503-391-2963 Email: l.l.silverio.narfe@gmail.com

REGION X William Shackelford

(Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 703-830-6590, CELL: 703-201-6304 Email: rvp10@narfe.org

NARFE Magazine (ISSN 1948-4453) is published monthly except in February and July by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $48. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2021, 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 Magazine, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President NARFE’S MISSION STATEMENT To support legislation and regulations beneficial to federal civilian employees and annuitants and potential annuitants under any federal civilian retirement system and to oppose those detrimental to their interests. To promote the general welfare of federal civilian employees and annuitants and potential annuitants, to advise and assist them with respect to their rights under retirement, health and other employee and retiree benefits laws and regulations, and to represent their interests before appropriate authorities. To cooperate with other organizations and associations in furtherance of these general objectives.

The First 100 Days

espite our divisions, most Americans agree that there are many things President Joseph R. Biden must do in a

short period of time to be successful. Time is a precious commodity in politics. The farther away you get from one election, the closer you get to another. Political calculations begin to change. Legislating becomes more complicated, then harder, then nearly impossible. Remember that pesky little delay in the transition process and the slow pace of cabinet confirmations? Those seem like distant memories now, further proving that time is of the essence.

The distribution of coronavirus vaccines makes us feel like we are entering a new stage of the pandemic. We are attempting to feel our way back to our old lives amid less-than-ideal circumstances. More states are relaxing restrictions and businesses are reopening. An end to the acute phase of the pandemic seems to be within sight. Johnson & Johnson’s oneshot vaccine gives the U.S. a third option to use in the battle against COVID-19, which has killed more than 530,000 Americans and infected more than 30 million.

Another round of the stimulus legislation addressed the economic crisis by providing direct payments to Americans, money for schools to reopen, small business loans and extended unemployment benefits for those struggling without paychecks. And what about a higher minimum wage? Will Congress continue working to raise the federal wage floor? While this was deemed out of order for reconciliation, you can expect the debate to continue in Washington and in your communities. The scale of the economic devastation caused by the coronavirus outbreak dwarfs that of the 2008 financial crisis. At its peak, roughly 9 million U.S. jobs were lost in the 2008 Great Recession, compared with 22 million jobs lost to the pandemic. More than a year after the outbreak breached America, nearly 10 million jobs remain lost, more than 20 million children are physically out of school, and roughly 100,000 businesses are feared closed forever. Additionally, President Biden is grappling with friendly fire on his other agenda items, such as student loan repayment, immigration, systemic racism, earmarks, affordable renewable energy, the Green New Deal, and the fight between organized labor and industry over unionization, wages and workplace issues. The bottom line is that the country is looking for action. Only time will tell what changes come to fruition.

KENNETH J. THOMAS NARFE NATIONAL PRESIDENT natpres@narfe.org 4

NARFE MAGAZINE MAY 2021

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Washington Watch

Congress Honors NARFE’s Centennial

ARFE’s Centennial received congressional recognition in late February, with resolutions introduced in the House and Senate congratulating NARFE on its 100

years of defending and advancing the earned pay and benefits of the federal community.

In the Senate, Sens. Ben Cardin, D-MD, and James Lankford, R-OK, introduced S.Res. 76, recognizing the vital contributions NARFE and its members have made to the United States over the past century. The Senate resolution passed under unanimous consent on the same day of its introduction, cementing NARFE’s Centennial in the chamber’s record. Cosponsors of the Senate resolution included Sens. Chris Van Hollen, D-MD, Lisa Murkowski, R-AK, Tim Kaine, D-VA, and Mark Warner, D-VA. In the House, Representatives Gerry Connolly, D-VA, and Brian Fitzpatrick, R-PA, introduced H.Res. 131, the companion measure to S.Res. 76. The bipartisan show of support in both chambers is a 6

NARFE MAGAZINE MAY 2021

testament to the work of NARFE and its members. After passage of the Senate resolution, Sen. Cardin said, “Our civil servants make possible the daily work of government, and NARFE for generations has delivered valuable guidance, timely resources and powerful advocacy relating to the earned pay and benefits of federal workers.”

NARFE National President Ken Thomas thanked the legislators who introduced and supported the resolutions and said that he was “honored that some of our most dedicated partners in Congress are publicly honoring NARFE on the occasion of this milestone anniversary.” A video of the Senate resolution passing can be found on NARFE’s website, along with more information on ways to celebrate NARFE’s Centennial. NARFE members should use the Legislative Action Center to ask their Representative to cosponsor the resolution. —BY ROSS APTER, POLITICAL ASSOCIATE

MAY ACTION ALERT ASK YOUR REPRESENTATIVE TO COSPONSOR NARFE’S CENTENNIAL RESOLUTION. In February, NARFE celebrated its 100th anniversary. To honor this important milestone, resolutions were introduced in both chambers of Congress congratulating NARFE and its members on their vital contributions to the country. The Senate unanimously passed its resolution, but the House has not considered the proposal. Visit NARFE’s Legislative Action Center, at www.narfe.org, to contact your Representative and ask him or her to cosponsor this resolution.

MYTH VS. REALITY MYTH: Budget reconciliation is a legislative tool that can be used to pass any policy in the Senate with a simple majority vote. REALITY: Not every policy can be included in reconciliation. The Byrd Rule prohibits the inclusion of extraneous measures in reconciliation, including ones that have no budgetary effect. Only policies that change federal spending or revenues can be included, with some additional guardrails. The Byrd Rule also prevents using reconciliation to make changes to Social Security. Additionally, reconciliation can only be used once per fiscal year.

House Subcommittee Considers Recommendations to Improve the Federal Workforce

s the federal government tackles novel challenges presented by the COVID-19 pandemic, it is more important than ever for the administration, agencies, Congress and stakeholders to pursue options that modernize the federal workforce so it can meet an ever-changing public landscape. In a February hearing, the House Oversight and Reform Subcommittee on Government Operations took steps to continue this process, hearing from expert witnesses who offered recommendations for improving the federal workforce and moving it into the future. In a statement submitted for the record, NARFE National President Ken Thomas laid out the association’s recommendations to enhance public service, including providing market-rate federal pay increases, improving federal human capital management, supporting modern telework policies and more. The full statement can be found on NARFE’s website. Recommendations presented by lawmakers and witnesses were broad in scope, covering many aspects of federal management. Majority Leader Steny Hoyer,

D-MD, recommended that Congress continue to pursue pay parity between civil servants and military members to bolster recruitment and retention and ensure that employees are compensated fairly. Rep. John Sarbanes, D-MD, indicated his support for enhancing and expanding telework policies that increase productivity and provide a better work-life balance for federal employees. Janice Lachance, former director of the Office of Personnel Management (OPM), echoed this view, noting that telework is a “critical component of attracting and retaining the kind of talent” that the federal government needs, and she recommended the policy be permanently adopted moving forward. Lachance also advocated for designating OPM’s director as a member of the presidential Cabinet to better serve the federal government. In response to a question from Rep. Stephen Lynch, D-MA, Lachance said that temporary agency leadership was a major problem under the previous administration, and many acting leaders either did not have the capacity to get important work done or were not properly vetted by

the Senate review process. She recommended that the current administration quickly nominate leadership across the government. James Sherk, former special assistant to President Trump, testified that it is too difficult to fire underperforming federal employees and that agencies should be empowered to “expeditiously” remove poor performers. Sherk argued that employees were satisfied with Trump-era workforce initiatives that made it easier to fire employees, citing recent annual Federal Employee Viewpoint Survey results that showed an increase in job satisfaction among federal employees. He also recommended that the federal government move away from the General Schedule and instead adopt a merit-based pay raise model that rewards high performers. Annie Joseph O’Connell, professor of law at Stanford University, countered Sherk’s view on removing poor performers. She recognized that deserved firings should occur but noted that implementing workforce initiatives that strip due process rights from federal employees to do so is “the wrong SEE RECOMMENDATIONS ON P. 8 NARFE MAGAZINE www.NARFE.org

Washington Watch

NARFE GRASSROOTS ADVOCACY LEARN MORE about how you can take action to protect your earned pay and benefits by reviewing NARFE Grassroots materials at www.narfe.org/legislation.

NARFE’s LEGcon21 Is Fast Approaching: Will You Participate?

e are less than two months away from NARFE’s legislative training conference, LEGcon21, scheduled for June 21-23. With a new Congress, new administration and NARFE’s 100th anniversary celebration this year, the timing could not be more perfect. LEGcon21 will be another example of NARFE’s century of work defending the interests of the federal community before Congress and the administration, and we are glad that many of you will be a part of it. This year’s conference will be a virtual experience as we continue to operate under state and local COVID-19 pandemic health mandates. The first two days of the conference will be dedicated to advocacy training sessions; on the third day, participants will engage in online meetings with their lawmakers and staff. Because the virtual format will be a new experience for many participants, we will host two important preconference sessions to ensure participants are prepared to engage. The first preconference session, “Know Before You Go,” will provide an overview of conference logistics, including the program timeline, using the virtual platforms, and navigating the LEGcon21

NARFE MAGAZINE MAY 2021

program website to access program materials, vendor exhibit information and all other relevant information. The second preconference session, “Meeting Your Lawmakers Virtually? What You Need to Know,” is for those participating in virtual meetings with legislators.

WITH A NEW CONGRESS, NEW ADMINISTRATION AND NARFE’S 100TH ANNIVERSARY CELEBRATION THIS YEAR, THE TIMING COULD NOT BE MORE PERFECT. Participants will learn the basics of the chosen platform. Lawmakers now have strict guidelines for staff and constituents when meeting virtually; therefore, we need to ensure that everyone follows those rules. Attendees will learn the dos and don’ts of congressional virtual meetings and examine best practices reported by congressional staff. Once the conference begins, NARFE members new to the conference and to advocacy as well as seasoned attendees

and advocates will take part in sessions specific to their experience level. Policy experts and congressional leaders will describe the legislative and political landscapes in Washington. Attendees will hear from experts about how to make the most of their meetings with lawmakers and learn tips that will stretch beyond the conference. On the third day, attendees will apply what they’ve learned in meetings with lawmakers. More specific information will be provided prior to scheduling meetings. There is still time to join us for the conference. Visit www.narfe.org/LEGcon21 and register today. We look forward to seeing all of you at LEGCon21. —BY MARSHA PADILLA-GOAD, GRASSROOTS PROGRAM MANAGER

RECOMMENDATIONS FROM P. 7

answer.” She instead urged the nomination of members to the Merit Systems Protection Board (MSPB), which reviews adverse personnel actions and can enforce removal of poor performers. The agency has been without quorum since 2016 and, therefore, has been unable to issue decisions, building up a 3,000-case backlog. —BY SETH ICKES, GRASSROOTS ASSISTANT

New COVID-19 Relief Package Signed Into Law

fter nearly two months of heated debate between lawmakers and the White House, President Joseph R. Biden signed a $1.9 trillion COVID-19 relief package into law in March. The package, dubbed the American Rescue Plan Act, narrowly passed in both the House and Senate almost entirely along party lines. Notably, the package included three provisions NARFE supported in letters to the House and Senate in advance of votes. These provisions ensure frontline workers who contract COVID-19 are eligible for workers’ compensation, provide emergency sick and family leave for federal employees who contract COVID-19, and extend the Paycheck Protection Program to all 501(c) nonprofit organizations. As part of the package, frontline federal workers who contract

COVID-19 would automatically be presumed to have contracted the virus at work and, thus, be eligible for workers’ compensation benefits. Without this presumption of eligibility, infected workers would find it difficult to prove that they contracted the disease while on duty and could have been denied workers’ compensation benefits in connection with their COVID-19 infection. This provision does not apply to federal employees who telework. The legislation also provided federal and postal workers with up to 15 weeks of paid leave due to circumstances caused by the COVID-19 pandemic, such as in cases where they are infected with the virus or forced to quarantine due to exposure to the virus. The leave is also applicable in cases where employees must care for a

child whose school or place of care is closed and conducting virtual learning, or if they must care for a family member incapable of self care who is infected with the virus. The bill also extended eligibility for the Paycheck Protection Program to all 501(c) nonprofit organizations, including 501(c)(5)s such as NARFE. The package included $1,400 direct payments for individuals earning up to $75,000 per year or couples making up to $150,000 per year, including $1,400 per dependent. Individuals earning between $75,000 and $80,000 per year and couples earning between $150,000 and $160,000 per year received a partial payment. The payments were phased out completely above the $80,000/ $160,000 per year thresholds.

—BY SETH ICKES, GRASSROOTS ASSISTANT

GAO Identifies High-Risk Federal Management Issues in 2021 Report

o no one’s surprise, human capital management once again appears on the Government Accountability Office’s (GAO) biennial high risk list. In total, the report identifies 36 areas across government with “vulnerabilities to fraud, waste, abuse and mismanagement.” Congressional oversight committees in both chambers reviewed the agency’s findings during two March hearings, where, in addition to human capital management, Comptroller General Gene Dodaro testified on highrisk areas like U.S. Postal Service (USPS) financial management, cybersecurity and more. Strategic human capital management has been on GAO’s high-risk list for two decades, and, according to the report, has only declined further since 2019. Dodaro told members of the Senate

Committee on Homeland Security and Governmental Affairs that lack of permanent leadership at the Office of Personnel Management (OPM) is a major issue. Since 2017, the HR agency has had six different directors or acting directors. The lack of a steady director, he argued, has left the federal government unable to address human capital issues, including “long-standing and emerging skills gaps.” The report notes that these skill gaps, caused by both insufficient staffing and poor workforce planning, are especially prevalent in fields like cybersecurity and science. Under both the Obama and Trump administrations, OPM acting leaders took on a dual role, serving as OPM director and as the deputy director for management at the Office of Management and Budget (OMB). This practice, Dodaro argued, harmed both

agencies and removed focus from critical issues. He emphasized that permanent leadership, not just at OPM but across government, is integral to addressing high-risk areas, along with support from the administration and Congress. The report warned that the condition of USPS had further diminished since 2019, with the agency losing $18 billion over the past two years. Dodaro told the House Committee on Oversight and Reform that the USPS business model is fundamentally broken and needs to be overhauled by Congress. He noted that postal reform legislative initiatives like Medicare integration or repeal of the health care prefunding mandate would help correct financial problems but would not fully solve fundamental issues.

—BY SETH ICKES, GRASSROOTS ASSISTANT NARFE MAGAZINE www.NARFE.org

Washington Watch LEGISLATIVE RESOURCES NARFE NewsLine – A weekly newsletter that goes out to NARFE members on Tuesdays and includes weekly recaps of legislative news, compiled by NARFE’s advocacy and communications teams. LEGISLATIVE ACTION CENTER – A one-stop site to send a letter to Congress, and more, at www.narfe.org.

President Biden Nominates Kiran Ahuja for OPM Director

fter six different directors in the past four years, the Office of Personnel Management (OPM) may finally be getting more stable leadership. President Joseph R. Biden nominated Kiran Ahuja to serve as director of OPM in February. In a statement, NARFE National President Ken Thomas urged swift action on Ahuja’s confirmation, calling on Congress to bring OPM “professional

leadership as the Biden administration works to improve both public service and the OPM services on which federal employees and retirees rely.” Previously, Ahuja served as OPM chief of staff during the Obama administration. Currently, she serves as the chief executive officer of Philanthropy Northwest, a nonprofit organization that promotes philanthropic efforts

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in the Pacific Northwest region of the United States. She would replace OPM’s Acting Director Kathleen McGettigan and would be the seventh person to hold the position since 2017, marking the highest turnover the agency has seen for the position in recent years. As of press time, no confirmation hearing has been scheduled. —BY SETH ICKES, GRASSROOTS ASSISTANT

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1/19/21 10:44 AM

NARFE BILL TRACKER

THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO LEGISLATION NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE

NARFE CENTENNIAL

BILL NUMBER / NAME / SPONSOR H.Res. 131/S.Res. 76: Resolution Celebrating NARFE’s Centennial / Rep. Gerry Connolly, D-VA / Sen. Ben Cardin, D-MD Cosponsors: H.Res. 131: 2 (D) 1 (R) S.Res. 76: 3 (D) 2 (R)

WHAT BILL WOULD DO

LATEST ACTION(S)

Congratulates NARFE on the celebration of its 100th anniversary on February 19, 2021 and recognizes the vital contributions its members have made to the United States over the past 100 years.

Referred to the House Committee on Oversight and Reform (H.Res. 131) / Agreed to in the Senate by unanimous consent on February 25, 2021 (S.Res. 76)

H.R. 695/S. 145: USPS Fairness Repeals the U.S. Postal Service’s Act / Rep. Peter DeFazio, D-OR / prefunding requirement. Sen. Steve Daines, R-MT POSTAL REFORM

GPO/WEP

FEDERAL ANNUITIES

Cosponsors: H.R. 695: 211 (D) 38 (R) S. 145: 4 (D) 3 (R) H.R. 82: The Social Security Fairness Act / Rep. Rodney Davis, R-IL

FEDERAL PERSONNEL POLICY

FEDERAL COMPENSATION

Referred to the House Committee on Ways and Means

Cosponsors: H.R. 82: 64 (D) 27 (R) H.R. 304: The Equal COLA Act / Rep. Gerry Connolly, D-VA Cosponsors: H.R. 304: 10 (D) 1 (R) H.R. 51/S. 51 Washington D.C. Admission Act / Del. Eleanor Holmes Norton. D-DC / Sen. Thomas Carper, D-DE

DC STATEHOOD

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

Referred to the House Committee on Oversight and Reform (H.R. 695) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 145)

Provides Federal Employees Retirement Referred to the House System (FERS) retirees with the same Committee on Oversight annual cost-of-living adjustment (COLA) and Reform as Civil Service Retirement System (CSRS) retirees. Provides for the admission of the State of Washington, DC, into the Union.

Cosponsors: H.R. 51: 212 (D) 0 (R) S. 51: 39 (D) 0 (R) 1 (I) H.R. 302: Preventing a Patronage Requires presidential administrations to obtain the agreement of Congress to System Act / Rep. Gerry reclassify competitive service positions Connolly, D-VA outside of merit system principles. Cosponsors: H.R. 302: 9 (D) 1 (R) H.R. 392/S. 561: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerry Connolly, D-VA / Sen. Brian Schatz, D-HI

Provides federal employees with a 3.2 percent average pay raise in 2022.

Cosponsors: H.R. 392: 29 (D) 1 (R) S. 561: 9 (D) 0 (R) 1 (I)

NARFE’s Position:

Support

Referred to the House Committee on Oversight and Reform (H.R. 51) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 51)

Referred to the House Committee on Oversight and Reform

Referred to the House Committee on Oversight and Reform (H.R. 392) / Referred to the Senate Committee on Homeland Security and Government Affairs (S. 561)

Oppose

No position

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Questions & Answers

Q&A

THE FOLLOWING QUESTIONS & ANSWERS were compiled by NARFE’s Federal Benefits Institute experts. NARFE does not provide legal, financial planning or tax advice or assistance.

EMPLOYEES MIDYEAR RETIREMENT

I know that a lot of federal employees retire at the end of the year to maximize their lump sum payment for unused annual leave, but are there advantages to a midyear retirement?

There are definitely some advantages to a midyear retirement. Your claim won’t be delayed by the backlog of new claims arriving at the Office of Personnel Management (OPM) at the end of the year, and you will avoid the busy end-ofyear federal health benefits Open Season. OPM statistics show that 25 percent of all retirement claims for the entire year are submitted with end-of-year retirement dates. However, every month thousands of federal employees file for retirement. Whether you decide on May 31 or June 30 or July 31 (or any other date that works for you) is not that important. Retiring partway through the year allows you to take advantage of some tax savings programs in the year of your retirement. By retiring midyear, you may make contributions to the Thrift 14

NARFE MAGAZINE MAY 2021

Savings Plan (TSP) up to the entire annual elective deferral limit by increasing your biweekly contributions (although for FERS employees, the matching will be limited to 5 percent of your biweekly basic pay). In addition, midyear retirees can take advantage of the tax savings of a Flexible Spending Account: Health Care FSA (HCFSA), Limited Expense Health Care FSA (LEX HCFSA) or Dependent Care FSA (DCFSA). According to the www.fsafeds. com website, your HCFSA or LEX HCFSA will terminate as of the date of your separation or retirement; however, any eligible health care expenses incurred prior to the date of separation will still be reimbursed. Those incurred after the separation date are not reimbursable, even if you accelerated your allotments.

If you used your entire elected amount before FSAFEDS has deducted it from your pay, you will not be responsible for the remaining allotments. Your DCFSA remaining balance can continue to be used to pay for eligible dependent care expenses until your account balance is depleted or until the end of the calendar year, whichever comes first. To take advantage of the grace period for your DCFSA, you must be actively employed and making allotments through December 31 of the benefit period (plan year).

FEHB PREMIUMS

Why do Self Plus One premiums continue to be higher from some health insurance carriers than Self and Family options?

For most enrollees (95 percent), the enrollee share for Self Plus One will be lower than the enrollee share for Self and Family. However, the reverse is also

possible for some plans. The statutory formula that is used to calculate the government contribution is based on the average of all plan premiums and requires that OPM calculate a maximum contribution for each enrollment type. In other words, there is a limit to how much the government will contribute toward the cost of a Self Only, Self Plus One, and Self and Family enrollment. The government contributes the lesser of the maximum contribution or 75 percent of the total premium. The remaining amount is the enrollee share (how much the enrollee must pay). In some cases, such as plans with a premium cost that is above the program average, this calculation may result in a higher enrollee share for a Self Plus One enrollment than a Self and Family enrollment.

RETIREMENT PROCESSING

Q A

Has COVID-19 changed the processing of my retirement and/or how I should submit my application?

OPM has temporarily suspended requirements to submit paper documents with “wet signatures” for agency-submitted immediate retirement applications (and death-in-service cases). Applicants must sign the appropriate form for retirement: SF 3107 - “Federal Employees Retirement System (FERS) Application for Immediate Retirement”; SF 2801 - “Civil Servants Retirement System (CSRS) Application for Immediate

Retirement”; or SF 2803 (CSRS) or SF 3108 (FERS) for civilian deposit/redeposits or military deposits. OPM will not accept applications without one of the signature types below. Signature blocks with “national emergency, signature not available,” digitized signatures using a mouse, stylus or touchscreen to type text using a cursive font as well as copied/pasted signatures are not acceptable. Under this temporary measure, OPM will accept applicant signatures only in the following formats: 1. Original ink signatures. 2. Scanned ink signatures. Documents may be signed in ink and then scanned by the submitting agency. 3. “Printed” PDF signatures using a Personal Identity Verification card (PIV) or Common Access Card (CAC). PDF documents may be signed using the PIV/ CAC method and then printed and included in a retirement package submission. CACs are issued by the Department of Defense to civilian employees, while PIV cards are issued by other federal agencies. 4. If you are married and electing a partial survivor annuity for your current spouse, you may use remote/electronic notaries to sign the “Spouse’s Consent to Survivor Election” form (SF 2801-2 for CSRS, SF 3107-2 for FERS). Contact your agency’s benefits office to be sure that none of these temporary measures have changed. For the Federal Employees’ Group Life Insurance (FEGLI),

agencies may accept form SF 2823 - “Designation of Beneficiary,” by fax or email, with the original to follow as soon as practicable. FEGLI regulations allow agencies to determine the appropriate methods for receipt of the FEGLI Designation of Beneficiary form. OPM’s contractors continue to administer the programs listed below. Please see their websites for the most up-to-date operating status. • Federal Employees Dental and Vision Insurance Program (FEDVIP): www.BENEFEDS. com, 1-877-888-3337. • Federal Long Term Care Insurance Program (FLTCIP): www.LTCFEDS.com, 1-800-582-3337. • Federal Flexible Spending Account Program (FSAFEDS): www.FSAFEDS.com, 1-877-372-3337.

RETIREES SOCIAL SECURITY BENEFIT

My full retirement age (FRA) for Social Security is 66 and 4 months, which I will reach in September of this year. I am going to file for Social Security retirement to begin in September, and I am retiring at the end of June under FERS. Will my earnings from January through June affect my ability to receive my Social Security benefit in September?

You will be entitled to your Social Security benefits for any of the

NARFE MAGAZINE www.NARFE.org

Questions & Answers

months after you have stopped working and your wages are below a certain monthly earnings limit. Some people who file for benefits midyear may have already earned more than the yearly earnings limit amount. There is a special rule that lets you receive a full Social Security check for any whole month Social Security considers you retired, regardless of your yearly earnings, under two scenarios: • If you are under your FRA for all of 2021, you are considered retired in any month that your earnings are $1,580 or less and you did not perform substantial services in self-employment. • If you reach your FRA in 2021, you are considered retired in any month that your earnings are $4,210 or less and you did not perform substantial services in self-employment. Beginning with the month you reach your FRA, your earnings no longer reduce your benefits, no matter how much you earn. If you are receiving Social Security benefits, are younger than the FRA, and earn more than the yearly earnings limit, Social Security may reduce your benefit amount. If you are under your FRA for the entire year, then $1 is deducted from your benefit payments for every $2 you earn above the annual limit. For 2021, that limit is $18,960. If you are retiring in the year you reach your FRA, Social Security will deduct $1 in benefits for every $3 you earn above a different limit. In 2021, the earnings limit is $50,520. Only your earnings up to the month before you reach your FRA will be counted, not your earnings for the entire year. 16

NARFE MAGAZINE MAY 2021

ANNUITY OR PENSION?

What is the correct word to use for the benefit that I receive from OPM under CSRS (or FERS)? Is it “pension,” “annuity,” or something else?

The words pension and annuity are often used interchangeably. For instance, OPM’s website calls federal retirees “annuitants,” and CSRS and FERS retirement benefits “annuities.” On the other hand, the Government Pension Offset (GPO) reduces Social Security benefits by two-thirds of a government “pension” if the pension was not covered by Social Security, such as a CSRS retirement benefit (or CSRS annuity). According to Merriam Webster, an annuity is a sum of money payable yearly or at other regular intervals, and a pension is a fixed sum paid regularly to a person. Hmmm ... sounds similar. Note that the word “annuity” is also used in the insurance industry to describe an insurance product that provides a stream of income, often for life or sometimes for a fixed period. To “annuitize” your TSP means that you are converting a portion of your investment (or all of it) to an annuity. Metropolitan Life Insurance Company (MetLife) has been the sole annuity provider for the TSP since the plan’s inception in 1986. It’s kind of like the lyrics from the great Ella Fitzgerald, “You like potato, and I like potahto. You like tomato, and I like tomahto.” Whether to call your federal retirement benefit a pension or an annuity is your choice, but remember that your retirement may include multiple streams of income, not just a single government pension—or is that annuity?

MEDICARE AND FEHB

Where can I learn more about how Medicare coordinates with my Federal Employees Health Benefits (FEHB) plan? I am already enrolled in Medicare Part A, and I turned 65 a couple of years ago. I will be retiring later this year and have learned that I can enroll in Medicare Part B after I retire without a late enrollment penalty since I have carried FEHB as an employee.

The NARFE Federal Benefits Institute is a great place to start. There you will find webinars about the basics of Medicare enrollment and the coordination of Medicare with FEHB. Two recent titles include “So Many Choices: Which FEHB Plans Work Best With Medicare A and B?” (November 19, 2020) and “To B or Not to B: Is Medicare Part B Right for You?” (October 22, 2020). To prove that you’re exempt from the late enrollment penalty, it is best to have an HR specialist from your agency complete form CMS L564 “Request for Employment Verification,” to verify that you have been covered under “current employment” health insurance. You will also need to complete form CMS 40B - “Application for Medicare Part B.” There is a special enrollment period of eight months following your retirement in which you may enroll without incurring a late enrollment surcharge; see SSA Publication 05-10012 – “How to Apply for Medicare During Your Special Enrollment Period.” These resources are available at www.ssa.gov.

TSP WITHDRAWAL

When withdrawing money from my Thrift Savings Plan (TSP) following retirement, can I tell them to take the money from my G Fund and not from the C, F or S Funds? I am thinking of a one-time withdrawal to help purchase a home. It was recommended that I put the money in the G Fund that I plan to use in the near-term.

No, withdrawals come from the funds equally. This is a scenario where you might want to consider a combination of TSP and IRA. Here’s why: It’s generally considered a bad idea to invest

money in the stock market if you will need to spend it within the next five years. Think of the 2008 recession and how long it took the market to recover. If you leave all your funds in the TSP and have some money invested in the C, S and I Funds, you do not get to choose where your funds come from for withdrawal.

NARFE AT YOUR SERVICE At NARFE Headquarters, experts are available to answer questions and assist in helping with a variety of benefit matters.

CALL NARFE AT

800-456-8410,

To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

OPTION 2

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2/12/20 9:51 AM

NARFE MAGAZINE www.NARFE.org

Benefits Brief

Suspending FEHB vs. Canceling FEHB hroughout your federal career, you have probably heard that you should never cancel your Federal Employees Health Benefits (FEHB) coverage. It’s

true that the decision to suspend or cancel one’s FEHB plan should not be entered into lightly. However, certain scenarios outlined by the Office of Personnel Management (OPM) can make the decision easier. If you are an annuitant and your spouse is an active federal employee, it may make sense to move under your spouse’s FEHB plan and take advantage of the pretax premium. In that case, you must cancel your own FEHB coverage. This is the one exception that allows the annuitant to reinstate their FEHB coverage later if/when desired or needed. The annuitant and spouse should always coordinate the effective date of this move with both OPM and the employed spouse’s agency to ensure that there is no break in health insurance coverage. OPM Form 2809 - “Health Benefits Election Form,” states, “Generally, you cannot reenroll as an annuitant unless you are continuously covered as a family member under another person’s enrollment in the FEHB program during the period between your cancellation and reenrollment. If you cancel your enrollment because you are covered under another FEHB enrollment, you can reenroll from 31 days before through 60 days after you lose that coverage under the other enrollment.” So, why not just suspend FEHB coverage? OPM states

NARFE MAGAZINE MAY 2021

that you can only suspend FEHB coverage in certain circumstances: if you are enrolling in a Medicare HMO or Medicare Advantage plan; enrolling in Medicaid or a similar state-sponsored program of medical assistance for the needy; or enrolling in

THERE IS RARELY A ONE-SIZE-FITSALL SOLUTION FOR SOMETHING AS INDIVIDUAL AS HEALTH CARE. TRICARE, the Peace Corps or CHAMPVA. Well, why not just maintain your own FEHB coverage? Here is some food for thought. Are you looking for tax savings? The FEHB premiums for current federal employees are withheld pretax, which reduces taxable income. While Self Plus One coverage is a bit more expensive than carrying two Self Only plans, the tax savings will usually result in a net positive outcome.

Additionally, if you are the annuitant and reach age 65, you can delay your enrollment in Medicare because you are covered under your federally employed spouse’s FEHB plan. Once your spouse retires, you will be eligible to enroll in Medicare without a late enrollment penalty during the eight-month Special Enrollment Period. Depending on how long your spouse continues working, this could be worth thousands of dollars in savings. Once both federal spouses are retired (assuming both qualified for retirement immediately upon separating from federal service), if there are no children under the FEHB plan, it typically makes sense to switch back to two separate Self Only plans. As always, there may be exceptions to consider. Is one spouse a retired public safety officer who can claim a $3,000 per year tax exemption toward the cost of his or her FEHB coverage? Is one family member chronically or seriously ill? Will he or she incur large out-of-pocket expenses where the catastrophic limit for everyone under the plan is reached before the end of each year? There is rarely a one-sizefits-all solution for something as individual as health care. Do your research. There may be a solution you have yet to consider. —ERIN CARTER, NARFE FEDERAL BENEFITS INSTITUTE DIRECTOR

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NARFE’S 2021 LEGISLATIVE TRAINING CONFERENCE JUNE 21-23 2021

LEARN

ENGAGE

FROM TOP EXPERTS

WITH YOUR LEGISLATORS

Join NARFE members across the country at a virtual training event that will help you: •

Learn how to make the most of virtual meetings with your legislators

•

Hear from grassroots experts and learn bold ideas to improve your advocacy skills

•

Learn how to become a more influential advocate by building and sustaining relationships

LEGcon21 is going to be a full-scale virtual event with specialized trainings for expert and novice advocates alike. Dedicated general sessions and breakouts will prepare you to be a strong advocate and advance NARFE’s legislative priorities. Visit www.narfe.org/LEGcon21 for the full lineup and to register.

Celebrate With Us June 21, 2021 A special virtual evening event celebrating NARFE and the civil service. Visit www.narfe.org/centennial for updates.

NARFE MAGAZINE MAY 2021

When Disaster Strikes: Federal Employees’ Role in Emergency Preparedness and Response How two civil servants, and the agencies they work for, helped Americans deal with catastrophes BY EVERETT A. CHASEN

NARFE MAGAZINE www.NARFE.org

t 9 a.m. on Sept. 11, 2001, Joseph J. (Joe) Seebode exited a commuter train in the lower level of New York City’s World Trade Center. “It was about 15 minutes after the first plane had hit the North Tower,” he remembers, “and the ventilation system had already pulled

smoke down all the way into the basement. Fortunately, the electricity had not yet been cut in that area, and an escalator to street level was still running. Just as I got to the top of that escalator, the second plane hit.” Seebode, now deputy district engineer and chief of programs and project management for the New York District of the U.S. Army Corps of Engineers, recalls the chaos that followed. “Everyone was screaming and yelling. As the lights went out throughout the complex, I saw some sunlight on the Vesey Street side and made a beeline for it. When I went out the door, everything was bedlam. I turned

NARFE MAGAZINE MAY 2021

right, and thank God I did. Debris from the second plane was coming down at that moment—to the left.” While Seebode, an environmental engineer who is the New York District’s senior civilian official, was hit with some small fragments of debris, he was unhurt and made his way out of the area. “My immediate response was to go back to help—but the police had cordoned everything off and didn’t want anyone to go back, especially people like me in a business suit.” Soon enough, he got his opportunity to assist. “The Chief of Engineers came to New York and asked if I would be the Corps’ liaison to New York City because I knew many of the city and state reps, and a lot of the Port Authority [of New York and New Jersey, which operated the World Trade Center complex] folks because of the work the Corps was doing in and around New York Harbor. I said yes and went to work.” Corps vessels and their crews took people away from the site to safe locations and shuttled emergency responders back and forth to work; brought fuel, antifreeze, water, oil and spare parts to fire trucks to enable them to continue pumping water; and took supplies, including pizza and donuts, to first responders. The Corps also supported efforts to find efficient debris removal strategies, including assisting with the development of waterside barging sites, and brought its construction management expertise to bear during operations where rubble was carefully examined for human remains, personal effects and crime scene evidence. Joseph J. (Joe) Seebode (center), flanked by former Under Secretary of the Army Joseph W. Westphal (left) and Brigadier General Paul E. Owen, former New York District Commander, on board the Army Corps of Engineers Drift Collection Vessel Hayward.

Shelter From the Storm: Resources for Disaster Preparedness and Recovery BY MABEL YU Recent years have seen our nation plagued by extreme weather events from wildfires to tornadoes, ice storms to floods. Knowing how to prepare for disasters—natural and manmade—and how to access help in their aftermath can mitigate the hardship for you and your family. Below are some useful websites with information about preparation and recovery. Consumer Financial Protection Bureau (CFPB). Protecting Your Finances and Property After a Disaster. While people often focus first on physical damage following a disaster, other less-visible concerns also need to be addressed. This webpage lists concrete steps to take to handle your finances after a catastrophe: www.consumerfinance. gov/ask-cfpb/if-i-have-beenaffected-by-a-natural-disaster-whatshould-i-do-in-the-days-immediatelyfollowing-it-en-1513/. Disaster Assistance Improvement Program (DAIP). Finding Disaster Assistance. The DAIP was created to help survivors more easily access disaster information and assistance. Its website includes content on more than 70 forms of assistance from 17 agencies. One tab breaks down information by category types such as that for older Americans, veterans, and children and families. There is a search function for finding specific types of assistance, and you can apply online from the site: www. disasterassistance.gov/.

Environmental Protection Agency (EPA). Returning to Your Home or Business After a Disaster. This webpage houses general safety information on returning to homes and buildings following a disaster, including content on handling wastewater, reporting suspected chemical spills, cleaning mold and managing debris: www.epa.gov/natural-disasters/ general-information-disasters. Federal Employee Education and Assistance Fund (FEEA). Assistance Specific to Feds. Founded in 1986, FFEA is dedicated to offering scholarships and emergency financial assistance to civil servants and their families. Their disaster relief grants provide up to $500 to eligible Feds who have experienced a declared natural disaster: https://feea.org/ our-programs/. FEMA. Protecting Your Property Before Disaster Strikes. Preparation is key to potentially minimizing the damage of a disaster. On this webpage, you can find links to brochures detailing how to protect your property from natural hazards such as severe winds, coastal erosion and earthquakes: www.fema.gov/ flood-maps/products-tools/knowyour-risk/homeowners-renters/ protect-property.

FEMA. Recovering From Disaster. This online publication offers guidance for what to do after a disaster occurs, including tips on returning to your home safely, how to deal with wildlife and how to cope with disaster-related stress: www.fema.gov/pdf/areyouready/ recovering_from_disaster.pdf. Kiplinger. Tax Relief for Disaster Victims. Taxes may the last thing on a survivor’s mind following a hazardous event, but when it’s time to file, the information in this article may prove useful. Learn about potential deductions for damaged or lost property, getting an extension to file and pay your taxes, and waived fees for tax transcripts: www.kiplinger.com/taxes/601293/ tax-relief-for-hurricane-wildfire-floodand-other-natural-disaster-victims. Ready.gov. Emergency Preparedness. Ready is a national public service campaign that aims to educate Americans so they can prepare for and respond appropriately to disasters. The site has resources for creating a family emergency plan, putting together an emergency kit, dealing with mass attacks in public places and more: www.ready.gov. USA.gov. Getting Help Immediately After a Disaster. The tips on this webpage outline what you can do immediately after a disaster, such as how to find a missing person, how to locate temporary shelter or rental housing, and what to do if you’re an American abroad when an emergency occurs: www.usa.gov/ after-disaster.

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SUPERSTORM SANDY RESPONSE

In 2012, the New York District was again at the forefront assisting with a major disaster. Superstorm Sandy affected 24 states and all of the Eastern Seaboard. The storm caused the Atlantic Ocean, the Hudson River and the East River to flood streets and tunnels within and connecting to Manhattan. Damage was also extensive along the coastlines of New York and New Jersey. In total, Sandy caused an estimated $74.1 billion in damages, according to the Federal Emergency Management Agency (FEMA), and was responsible for 147 deaths. As soon as it was safe to do so, Seebode toured flooded sites. “Many, many tunnels were flooded,” he recalls. “I’ll always remember, while in the flooded basement of the [new] World Trade Center, Governor Cuomo asking how long it will take [to pump out the water]. At that moment, I was unaware of the full magnitude of the total situation or how we were even going to do this, particularly with power out and no equipment on site. “But what I did know is that the Corps of Engineers’ culture and can-do attitude would bring the expertise, energy and passion to fulfill the mission as quickly as possible to help the region’s recovery. “We ran it like a Corps of Engineers program. We gave every tunnel a project manager, and each manager was told to do everything required to get their tunnel pumped out as fast as possible. We brought in experts from throughout the Corps to help, leaned on the expertise of great agency partners, including the Navy, Coast Guard and others, contracted and worked some amazing logistics to get the pumps needed delivered and into place, and pumped out more than 500 million gallons of water from 16 tunnels within 13 days.” New York District personnel also worked with other agencies to clean up the estimated 3.6 million cubic yards of debris left behind by Sandy—enough to fill seven Yankee Stadiums. “I remember meeting with the EPA regional administrator. She wanted to see the greenest debris management effort in the history of our country [and] implored us to 24

NARFE MAGAZINE MAY 2021

maximize efforts so the long-lasting impacts to the environment [were] minimal. And while speed was at the forefront, doing it right and reducing secondary impacts became a kind of mantra for us. We did amazing things segregating the debris, maximizing recycling and using other environmentally preferred solutions.”

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Seebode and other District employees also helped manage New York City’s response to the coronavirus pandemic. At the beginning of the outbreak, New York and New Jersey feared they might need to add thousands of hospital beds to the 75,000 beds currently in the area. When FEMA and the Department of Health and Human Services (HHS) reached out to the Corps, they immediately started developing solutions. “We brought in experts from across the country at the same time as we were sending everyone else home,” says Seebode. “We looked at numerous ways to deliver patient spaces … how we might convert different types of facilities, like hotels, arenas and college dormitories—or build new facilities. We identified more than 20 different facilities and locations and ultimately constructed four.” Among those sites were the Jacob K. Javits Convention Center in Manhattan, which was transformed into a fully equipped 1,200-bed emergency hospital that began receiving patients in just one week.

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National Hurricane Center storm surge team leader Jamie Rhome assesses the line of debris at Fort Pulaski near Savannah, GA, to help determine the height of Hurricane Matthew’s storm surge in 2016.

“I am proud of the Corps—we leaned forward when the country needed us. New York District’s response in March and April of 2020 was remarkable, even as New York City was the American epicenter for the pandemic.” Seebode, a 2017 finalist for a Samuel J. Heyman Service to America (SAMMIE) medal for career achievement from the Partnership for Public Service, has learned that throughout government and elsewhere, “emergency responders are a special breed and a brotherhood. They are much stronger as a team than through their individual organizations. They help each other out, and they find a way.”

THE ROLE OF FEDERAL AGENCIES DURING DISASTERS

After disasters occur, the work all federal agencies and employees do is coordinated by FEMA. The agency collaborates closely with federal, state, local, tribal and territorial partners, making it possible to serve Americans through locally executed, state managed and federally supported disaster response. “Every day, more than 20,000 emergency managers work to make our nation safer, stronger and more prepared. Our mission is to help people before, during and after disasters,” says a spokesperson for the agency. All federal assistance begins with a governor’s request for help. FEMA then examines the extent of the damage, draws up an estimate on the cost and time of recovery, and acts on its evaluation. If an emergency is declared, the government provides immediate but short-term assistance, and costs are shared with the states involved. A presidential major disaster declaration means that the disaster is severe 26

NARFE MAGAZINE MAY 2021

enough that it warrants long-term aid from the federal government. If the president makes such a declaration, federal agencies initiate long-term plans to help a community rebuild and recover, and the federal government takes over financial responsibility. The nation faced unprecedented challenges in 2020. Numerous federal agencies worked to contain COVID-19, FEMA’s first operational response to a national pandemic. Agencies also dealt with a record number of natural disasters, including devastating wildfires in the West and the most active Atlantic hurricane season our country has ever seen. “For the first time in [our] history,” the spokesperson says, “FEMA responded to simultaneous disasters in Washington, DC, five territories, and all 50 states.” The agency encourages readers to visit the Ready.gov website and create emergency plans to stay safe during disasters.

NWS AND STORM SURGES

Another agency with important responsibilities in disaster preparedness and recovery is the National Weather Service (NWS). “When a hurricane is threatening, it’s our job to produce the forecast, the warnings and the briefings that go into making some fairly significant decisions,” explains Jamie Rhome, storm surge specialist for the NWS’ National Hurricane Center (NHC). In the past decade, Rhome and his NHC Storm Surge Unit team radically changed the way the center predicts the amount and location of impending coastal flooding that result from hurricanes. Their work has saved many lives and prevented significant property damage during major storms. Previous predictions of the harm storms might cause were based on wind speed, using a tool called the Saffir-Simpson Hurricane Wind Scale. Rhome’s team realized that wind speed estimates alone didn’t

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predict likely damage. Far more important was the abnormal rise in seawater level that takes place during a storm, waters pushed onto land by offshore winds. This abnormal rise is called a storm surge. Predicting the size and duration of these surges and the areas they are most likely to reach is a more accurate method than Saffir-Simpson of identifying areas threatened with damage and targeting locations to be evacuated ahead of storms. NWS estimates that 1,833 people died from Hurricane Katrina in 2006, either directly or indirectly, even though advance warnings were issued about the storm’s size and intensity. “We started asking ourselves, ‘Why aren’t people heeding our warnings?’ ” Rhome recalls. “Is it a trust issue? A communications issue? And that led to a complete do-over of our nation’s prediction capabilities.” Rhome and his team built a computer model that accurately predicts storm surge intensity several days before hurricanes make landfall and identifies areas most likely to be inundated by water. As more data becomes available about the storm and its expected track, the model is updated and prediction accuracy improves. NHC keeps government officials, emergency managers, first responders, the press and the public updated on their findings through briefings, notices,

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NARFE MAGAZINE MAY 2021

text messages and phone calls. This helps people make evacuation decisions, deploy resources closer to affected areas and determine how much effort needs to be put into preparation. The storm surge warning system was officially implemented during the 2017 Atlantic hurricane season. It calls out areas where lifethreatening flooding from saltwater is possible during hurricanes. Warnings are communicated via wireless emergency alerts in the same way tornado warnings alert mobile phones. Since the system’s launch, direct fatalities from storm surges have dropped substantially. Unlike the high loss of life from Hurricane Katrina, the six major hurricanes in 2020 were responsible for one death. The team’s improving ability to predict where floodwaters will appear has also decreased the number of people requiring evacuation in advance of today’s storms, compared with those a decade ago. In the immediate aftermath of hurricanes, Rhome and his team of eight estimate where the storm waters will be—valuable information at a time when communications are fragmentary, observation locations are temporarily abandoned and on-theground information is scarce. This allows first responder resources to be deployed more quickly and efficiently, saving lives and property. Rhome and his team use the time outside of hurricane season to better predict the risks posed by hurricanes under different scenarios. That information is used by federal agencies and state and local governments to look at potential vulnerabilities. For his work in creating the new forecasting model and warning system, Rhome received a SAMMIE medal in 2019 in the category of Safety, Security and International Affairs. “Clear forecasts provide a steady depiction of the risk hurricanes provide,” he concludes. “I fell in love with the work and never turned back.” —EVERETT A. (EV) CHASEN IS A WRITER AND COMMUNICATIONS CONSULTANT IN THE WASHINGTON, DC, AREA. HE RETIRED FROM THE FEDERAL GOVERNMENT AFTER 35 YEARS OF SERVICE.

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Splitting Up and Dividing Assets:

Considerations for Feds By David Tobenkin

Just how difficult and expensive can a divorce involving two federal employees, even ones at the same agency and with similar seniority, be? Very. So says M., a senior U.S. Health and Human Services (HHS) pharmacist with two kids who asked not to have her name released. She had to pay $110,000 in legal fees to end her 13-year marriage to her similarly situated, HHS-employed spouse in 2013.

NARFE MAGAZINE www.NARFE.org

“Many attorneys say they have experience with federal benefits in settlements but may have only had a few cases or not had key benefits issues in dispute, which means they really don’t know all the nuances.” Jessica Markham

Why so expensive? Her ex-husband refused to participate in settling the divorce outside of the courtroom, forcing M. to use her $400-per-hour attorney to take all legal actions through the court system to end their marriage, divide assets and determine custody of their minor children. Yet S., another HHS pharmacist interviewed, divorced from her pharmacist husband eight years ago after 17 years of marriage and two kids and managed to do so with minimal costs, less than $4,000, after splitting almost everything 50-50. Much of the difference rides on how reasonable the parties are willing to be in seeking to end their relationship outside of court and, unfortunately, one sensible spouse is not enough—it takes two to tango. “You can’t reason with someone who is unwilling to compromise,” M. notes. In particular, federal employees and annuitants contemplating divorce should be aware of factors related to the division of their federal benefits that are often ignored, that can lead to post-divorce feelings of anger or being cheated, and that can complicate the former couple’s efforts to move on. This story examines strategies for how couples can allocate federal marital assets in the fairest and least injurious way possible.

Moving Toward Divorce

Both divorcing spouses should be represented by attorneys. Any attorney retained should be familiar with the general family law of the state in which the divorcing couple resides and be licensed in that state, and the lawyer should be experienced in understanding and fairly allocating federal benefits, says attorney Jessica Markham, managing principal at the Bethesda, MD-based Markham Law Firm. Markham is the author of a recent book for divorce attorneys, Representing Federal Employees in Divorce. “Many attorneys say they have experience with federal benefits in settlements but may have only had a few cases or not had key benefits issues in dispute, which means they really don’t know all the nuances,” Markham cautions. In states with few federal employees, it may be desirable to consult an out-of-state attorney with 32

NARFE MAGAZINE MAY 2021

experience in federal benefits in addition to an in-state family lawyer. S. said that her agency’s employee assistance program (EAP) helped her and her husband find qualified attorneys at discounted fees. A good approach for divorcing spouses who are on relatively amicable terms is for both spouses to retain and consult their own attorneys to briefly advise them on a general baseline for a fair disposition of their assets, says Markham. Then a single, less expensive mediator familiar with federal benefits can be employed by the couple to work out a detailed and sensible disposition of assets. Finally, both spouses’ attorneys can perform a final check to ensure the agreement is thorough and fair and to help negotiate any, hopefully modest, final adjustments.

The Documents That Matter

Several key documents control the disposition of marital assets: first, the settlement agreement, whereby the married couple agree between themselves upon the distribution of assets and file the agreement with a state court; second, the divorce decree, a court order that is the judge’s official decision on what the legal disposition of assets and, where applicable, custody and care obligations for children should be; and, often, a separate court order acceptable for processing (COAP) that takes the divorce decree’s and settlement agreement’s directives and translates them into a short court order that uses federally required language to direct the U.S. Office of Personnel Management (OPM) in precise detail on how to allocate benefits; the document is approved by the divorce decree judge. Generally, OPM must comply with court orders, decrees or court-approved property settlement agreements in connection with divorces, annulments, or legal separations of employees or retirees that award a portion of the former employee’s retirement benefits or a survivor annuity to a former spouse, notes Ken Zawodny, associate director of retirement services at OPM.

Unfortunately, those documents are often riddled with omissions, ambiguities and errors, even when prepared by attorneys, says Dan Jamison, a certified public accountant and former FBI agent, who, among other services, consults with divorcing couples on allocation of assets. “In the majority of the divorces I’ve worked on, the TSP (Thrift Savings Plan) balance and the value of the future cash flows from the FERS (Federal Employees Retirement System) or CSRS (Civil Service Retirement System) annuity are the two largest assets of marital property to be settled, yet these two items often are given the least attention in a settlement agreement,” says Jamison, who participated in a NARFE webinar on divorce and federal benefits on April 11, 2019. NARFE members can still access the webinar at www.narfe.org. Much grief and fighting can be avoided if spouses agree to adhere to a reasonable baseline of how assets are divided, Markham notes. Generally, state law will presume assets and income accumulated during marital years should be split 50-50, though divorcing spouses can agree to other outcomes. An attempt by one or both spouses to “win” an allocation significantly more favorable than the state norm in these areas will often ultimately be rejected by the judge and merely increase the legal costs, and animosity, for both sides, Markham says.

The Disposition of Key Assets

CSRS and FERS Annuities. Notably, neither party gets any money from a federal annuity until the employed party who accrued the annuity begins receiving annuity payments. This is unlike private annuity pensions, which are governed by a different federal statute that allows a court to order pension benefits paid prior to retirement, Jamison says. Sometimes it is advisable for each party to simply keep their own annuity or to split pensions 50-50, Markham says. Other times, it may be worth negotiating over them or even litigating the issue. “If one spouse was a high-ranking CSRS plan participant and the other is a much less senior FERS

NARFE MAGAZINE www.NARFE.org

plan participant, you know the income flows from their annuities are going to be very different.” The disposition of any FERS Retiree Annuity Supplement (RAS) may be of interest to those who retire before age 62. OPM must apportion any FERS RAS when the award of the basic FERS annuity is based upon a formula or percentage. Zawodny notes that the FERS RAS is not divided under the terms of a court order if the award of the FERS annuity is based upon a stated dollar amount. Social Security. Social Security is personal to the individual and cannot be allocated between spouses by OPM or court order, but certain Social Security Administration (SSA) rules apply to divorced couples. If you are divorced, your former spouse can receive benefits based on your earnings record (even if you have remarried) if: • Your marriage lasted 10 years or longer. • Your ex-spouse is unmarried. • Your ex-spouse is age 62 or older. • The benefit that your ex-spouse is entitled to receive based on his or her own work is less than the benefit he or she would receive based on your work. • You are entitled to Social Security retirement or disability benefits. The SSA describes a variety of factors that govern Social Security benefits for divorced partners here: www.ssa.gov/benefits/retirement/ planner/applying7.html. An eligible divorced spouse can apply for his or her former spouse’s Social Security benefits online by using Social Security’s Retirement/Medicare Benefit Application, notes an SSA spokesperson. TSP Accounts. Courts in most states typically divide TSP account amounts accrued during marriage equally between the spouses, Markham says. Court orders can divide TSP assets by dollars or percentage of assets, and the timing of the division can be significant, as a steep market decline or 34

NARFE MAGAZINE MAY 2021

If one employee is a CSRS retiree with a more generous pension and the other a FERS retiree with a large TSP balance, a deal could equalize those benefits. gain can result in a spouse receiving a shortfall or a windfall. Markham notes that the best practice for avoiding this is to have the TSP divided as of a date certain with earnings gains and losses applied thereto, so that each bears the burden of market changes proportionally. Jamison says that TSP division orders must clearly state whether a TSP civilian account or uniformed services account is being divided and that it is important to account for any premarital or separate property interests, as specified by state law. Offsets between benefits may also be appropriate—if one employee is a CSRS retiree with a more generous pension and the other a FERS retiree with a large TSP balance, a deal could equalize those benefits. The rules for qualified domestic relations orders (QDROs) that apply to private-sector investment plans do not apply to the TSP, with valid court orders governing TSP plans allowing judges more flexibility to award TSP assets to current and former spouses and other dependents, says Kim Weaver, director of external affairs at Federal Retirement Thrift Investment Board, which administers the TSP. FEHB Plans. A divorcing spouse without his or her own FEHB policy cannot continue to receive coverage under the employee’s FEHB plan because he or she is no longer a family member. The policyholder

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The best practice is to have the TSP and OPM court orders completed and signed immediately after, or concurrent with, the issuance of the final decree of divorce, and served upon the federal agency immediately.

spouse should make sure to remove the former spouse from his or her health insurance policy upon divorce. However, the removed spouse is eligible, at his or her expense, to take Temporary Continuation of Coverage (TCC) health insurance for up to 36 months, which is similar to COBRA. Permanent entitlement to FEHB participation is available through Spouse Equity Act coverage for nonpolicy-holding divorcing spouses only under certain conditions including, importantly, the right to receive at least some portion of a federal annuity or survivor annuity, even if only $1 per month, and no remarriage prior to age 55. The cost of access to the FEHB for former spouses is not subsidized by the federal government, and premiums are approximately four times higher than the premium a federal employee or annuitant pays for the same plan, Jamison says. Divorcing couples need to promptly address their disposition of benefits. The best practice is to have the TSP and OPM court orders completed and signed immediately after, or concurrent with, the issuance of the final decree of divorce, and served upon the federal agency immediately, Jamison advises. Certain filings for post-divorce federal benefits must be made with OPM and federal agencies within prescribed deadlines. He further notes that specific considerations apply to the divorce law for special category employees, such as law enforcement officers, firefighters and air traffic controllers, who may have more general pensions that they can receive earlier; Foreign Service Pension System employees, who have draconian remarriage restrictions and statutory awards to the former spouse; and military employees. Thus, any attorney retained by these employees or their spouses should have experience with these types of federal benefits, as applicable. Further details on divorce benefits are covered in a January 2018 NARFE Magazine story, “The Ex-Files: What Federal Employees and Retirees Need to Know Before Dissolving Their Marriage.” NARFE is also intending to conduct a new webinar on Feds and divorce later this year. To submit questions on this topic that you would like answered in the presentation, send a note to fedbenefits@narfe.org. —DAVID TOBENKIN IS A FREELANCE WRITER BASED IN THE GREATER WASHINGTON, DC AREA.

NARFE MAGAZINE MAY 2021

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Managing Money

Decoding the Underpayment of Estimated Tax Penalty he United States has a pay-as-you-go tax system, which simply means that taxpayers must pay their taxes as they earn their income. Failure to do so may result in the

IRS assessing what’s known as the penalty for underpayment of estimated tax.

Each year, taxpayers perform the ritual of filing their tax returns, which, in essence, is the official method of settling up with the federal government. With the completion of their tax returns, taxpayers report income earned and taxes paid during the year, while the IRS reports back the amount of taxes that should have been paid. If a taxpayer has an outstanding tax liability greater than $1,000, the IRS may assess the penalty for underpayment of estimated taxes. Although viewed as a penalty (and described by the IRS as one, too), it’s really the government charging interest on the outstanding tax balance a taxpayer carries during the year. Taxpayers have two ways to ensure that they’re paying enough in taxes during the course of the year. The first is through tax withholding from income sources, such as wages, pensions and retirement plan distributions, while the second is making quarterly estimated tax payments. The U.S. tax system is anything but straightforward. Income, deductions and rules can vary from year to year, making it difficult to know exactly how much tax one should pay. Fortunately, the IRS offers 38

NARFE MAGAZINE MAY 2021

the option of paying a safe harbor tax payment to avoid the underpayment penalty. Generally speaking, taxpayers may avoid the underpayment penalty by paying the lesser of either 100 percent of the tax owed for the previous year (110 percent if the previous year’s income was greater than $150,000,

BECAUSE THE U.S. HAS A PAY-AS-YOU-GO TAX SYSTEM, IT IS NOT AS SIMPLE AS MAKING THE REQUIRED SAFE HARBOR TAX PAYMENT WHENEVER ONE WANTS TO DO SO DURING THE YEAR. or $75,000 if married filing separate) or 90 percent of the tax owed for the current year. For example, in 2019, Mr. and Mrs. Jackson had an adjusted gross income (AGI) of $150,000, which consisted of pension and Social Security income, and a federal tax liability of about $18,500. In December 2020, Mrs. Jackson took a $50,000 distribution from her Thrift

Savings Plan (TSP) account, increasing their AGI for 2020 to $200,000 and their federal tax liability to $31,100. To avoid the underpayment penalty for 2020, the Jacksons’ safe harbor tax payment is $20,350, which is the lesser amount between 110 percent of 2019’s tax liability ($18,500 x 110% = $20,350) and 90 percent of 2020’s tax liability ($31,100 x 90% = $27,990). Note, the Jacksons still must pay the additional $10,750 ($31,100 $20,350), but they won’t have to pay a penalty. Because the U.S. has a pay-as-you-go tax system, it is not as simple as making the required safe harbor tax payment whenever one wants to do so during the year. To gauge whether a taxpayer has paid their taxes throughout the year as required, the IRS breaks each year down into four quarters—not actual calendar quarters, but time periods considered quarters, nonetheless. These quarters coincide with the quarterly estimated tax payment due dates, which for 2021 are April 15, 2020; June 15, 2020; September 15, 2020; and January 18, 2021. Unless otherwise specified, the IRS assumes a taxpayer’s annual income is earned equally over each quarter. This, in turn, means the annual tax liability (or safe harbor amount) should be paid equally each quarter as well. Although Mrs. Jackson took a lump sum TSP distribution,

BENEFITS RESOURCES NARFE OFFERS MEMBERS a wide range of information on federal benefits. Visit www.narfe.org/FederalBenefitsInstitute.

the IRS treats the Jacksons’ entire $200,000 of income as being received in equal, $50,000 quarterly amounts. Likewise, Internal Revenue Code Section 6654(g)(1) states that the default assumption for tax withholding (regardless of when and how it’s made), is that it, too, is made in equal quarterly installments. In the Jacksons’ case, the IRS’s assumption that all income is earned and tax withholding is paid equally over all four quarters works well with the safe harbor tax rule. Things can, however, get more complicated when income isn’t earned consistently throughout the year and estimated tax payments are involved. Unlike tax withholding, estimated tax payments are credited in the quarter for which they are

made. This difference may create a discrepancy between when the IRS assumes income is earned versus when the taxes are paid and may result in an underpayment penalty. In that case, an alternate way of reporting income earned and taxes paid—called the annualized income installment method—may be necessary to avoid a penalty. Stay tuned next month to learn more about this method. MARK A. KEEN, CFP®, IS PARTNER, KEEN & POCOCK, AND AN INVESTMENT ADVISER REPRESENTATIVE AND REGISTERED PRINCIPAL OF THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA). SECURITIES AND ADVISORY SERVICES ARE OFFERED THROUGH SFA.

Gear up for NARFE’s Centennial ShopNARFE is the official online store offering NARFE-branded merchandise. A portion of the proceeds from all purchases support the organization. Shop now at www.narfe.org/shopnarfe.

His & Hers Jackets and Polos Bumper Sticker & Auto Magnets Commemorative Key Ring

ShopNARFE

Centennial Lapel Pin Tote Bags

Face Masks

License Plate Frames

And More!

NARFE.org/shopnarfe NARFE MAGAZINE www.NARFE.org

For the Record

MIXED RESULTS AS ECONOMIC GROWTH MEETS INFLATION CONCERNS

2021

THRIFT SAVINGS PLAN FUND RETURNS G FUND

F FUND

C FUND

S FUND

MARCH

0.11%

-1.23%

4.38%

-0.39%

2.35%

FEBRUARY

0.08%

-1.45%

2.76%

5.21%

2.26%

JANUARY

0.07%

-0.71%

-1.01%

2.85%

-1.09%

YTD

0.27%

-3.35%

6.17%

7.79%

3.52%

1 YEAR

0.83%

0.77%

56.32%

97.79%

44.87%

3 YEAR*

1.90%

4.70%

16.73%

18.13%

6.28%

5 YEAR*

2.01%

3.22%

16.27%

17.98%

9.23%

10 YEAR*

2.00%

3.67%

13.93%

13.30%

5.88%

2021

L INCOME

L 2025

L 2030

L 2035

L 2040

MARCH

0.71%

1.44%

1.78%

1.93%

2.08%

FEBRUARY

0.63%

1.35%

1.70%

1.86%

2.03%

JANUARY

-0.10%

-0.24%

-0.32%

-0.35%

-0.37%

1.24%

2.55%

3.18%

3.46%

3.76%

1 YEAR

11.54%

N/A

32.49%

N/A

39.66%

3 YEAR*

4.77%

N/A

9.27%

N/A

10.61%

YTD

2021

I FUND

5 YEAR*

4.75%

N/A

9.72%

N/A

11.11%

10 YEAR*

4.21%

N/A

8.25%

N/A

9.25%

L 2045

L 2050

L 2055

L 2060

L 2065

MARCH

2.20%

2.33%

2.92%

2.91%

FEBRUARY

2.17%

2.32%

2.93%

JANUARY

-0.39%

-0.41%

-0.44%

4.28%

5.47%

5.46%

1 YEAR

YTD

4.01% N/A

46.20%

N/A

3 YEAR*

N/A

11.73%

N/A

5 YEAR*

N/A

12.33%

N/A

10 YEAR*

N/A

10.07%

N/A

*ANNUALIZED.

The continued rollout of coronavirus vaccines and the passage of a stimulus package raised hopes for strong economic growth, an outlook that some observers associated with higher inflation expectations. Nevertheless, the Federal Reserve did not change its target short-term interest rate, citing the ongoing public health crisis. The C Fund rose while the S Fund fell just slightly. The I Fund rose, although its gain was dampened by a stronger U.S. dollar. Higher interest rates resulted in a loss for the F Fund. All the L Funds finished higher. —BY MICHAEL JERUE, FINANCIAL ANALYST, THRIFT SAVINGS PLAN RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)

COUNTDOWN TO COLA The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.61 percent in February 2021. To calculate the 2022 cost-ofliving adjustment (COLA), the 2021 third-quarter indices will be averaged and compared with the 2020 third-quarter average of 253.412. The percentage increase determines the COLA. February’s index, 256.843, is up 1.35 percent from the base. The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. For FECA COLA updates, visit narfe.org and search for FECA.

OPM RETIREMENT CLAIMS PROCESSING STATUS

2021

2020

Claims Received

MONTH

Inventory Monthly FYTD (Steady State Average Processing Average Processing is 13,000) Time in Days Time in Days

FEBRUARY 9,273 23,629 MARCH 6,566 21,264 APRIL 6,740 19,889 MAY 6,648 18,177 JUNE 6,555 17,432 JULY 6,819 17,631 AUGUST 6,775 18,570 SEPTEMBER 6,244 18,274 OCTOBER 8,323 19.605 NOVEMBER 5,876 20,022 DECEMBER 5,135 19,687 JANUARY 13,850 26,968 FEBRUARY 7,495 26,460

54 61 68 83 81 95 73 73 77 74 74 85 77

59 60 61 64 65 68 68 69 77 76 75 78 78

FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. l Source: OPM 40

NARFE MAGAZINE MAY 2021

CPI-W

Monthly % Change

% Change from 253.412

OCTOBER 2020

254.076

0.03

0.26

NOVEMBER

253.826

-0.10

0.16

DECEMBER

254.081

0.10

0.26

JANUARY 2021

255.296

0.48

0.74

FEBRUARY

256.843

0.61

1.35

MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER

Donate

to NARFE Programs

Support Alzheimer’s Research NARFE members contributed for Alzheimer’s research: $14 Million Fund

$13,818,458.08*

Enclosed is my NARFE-Alzheimer’s contribution: $ _________ Every cent that is contributed is used for research. q Mr.

q Mrs. q Miss q Ms.

*Total as of February 28, 2021. 100 percent of all contributed funds go to Alzheimer’s research.

Name: ______________________________________________

If you have any questions, write to:

City: ________________________________________________

NATIONAL COMMITTEE CHAIR

Olivia Williams 22 Garden Springs Road Columbia, SC 29209 EMAIL: oeashf3@gmail.com WRITE YOUR CHAPTER NUMBER ON CHECK; MAKE IT PAYABLE TO:

Address: ____________________________________________

State: _______________________________________________ ZIP: ________________________________________________ Chapter Number: _____________________________________ Credit Card Information:

NARFE-Alzheimer’s Research AND MAIL TO:

Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633 YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.

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Give to the NARFE-FEEA Fund MAKE CHECK PAYABLE TO: NARFE-FEEA Fund PLEASE MAIL COUPON AND CHECK TO: FEEA 1641 Prince St. Alexandria, VA 22314 YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.

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The NARFE-FEEA Fund supports NARFE members during disasters; provides scholarships to their children, grandchildren and great-grandchildren; and funds other programs to support NARFE members at the direction of NARFE and FEEA. Enclosed is my NARFE-FEEA Fund Contribution: $ _________ Name: ______________________________________________ Address: ____________________________________________ City: ________________________________________________ State: _______________________________________________ ZIP: ________________________________________________ Email: ______________________________________________

To make credit card or e-check contributions, visit www.feea.org/givenarfe.

NARFE News PUBLIC SERVICE RECOGNITION WEEK

Save Money With Two New NARFE Perks

s a NARFE member, you have access to a whole suite of discounts through our NARFE Perks program. This spring, members can take advantage of two more great

deals as we welcome ADT Home Security and Sam’s Club, our newest NARFE Perks Partners. With ADT, a safer home and peace of mind are just one click away. NARFE members will receive a free ADT-monitored home security system and a $100 Visa reward card from a Protect Your Home ADT Authorized Premier Provider when they sign up for service. You’ll gain peace of mind knowing you’re protected with the latest security technology 24 hours a day. Some exclusions apply, so head to www.narfe.org/memberperks for details.

CORRECTION TO MISSOURI TAX INFORMATION A description of Missouri’s treatment of military retirement income was incorrect in NARFE Magazine’s April 2021 article “State Tax Treatment of Federal Annuities.” The state does not, in fact, tax such income. We regret the error. 42

NARFE MAGAZINE MAY 2021

NARFE members can also take advantage of huge savings at Sam’s Club with an exclusive membership offer. Save up to 40 percent on a one-year membership and receive a limited-time free gift upon purchase. Please visit www. rebrand.ly/narfe-samsclub or call 877-579-1201 to sign up today. In addition to these new offers, NARFE Perks features many travel and entertainment

Send a letter to the editors of NARFE Magazine sharing your experience as a federal employee during Public Service Recognition Week, May 2-8, 2021. Email communications@narfe.org.

discounts, including ones on hotels, car rentals, theme park tickets, shows, sporting events and more. Other programs let you save on things like office supplies, prepaid legal plans, identity theft protection, internet service, end of life planning, and even fees at assisted living facilities. For more information, check out the NARFE Perks pages in this issue of NARFE Magazine. Remember, when you take advantage of the savings NARFE Perks has to offer, your NARFE membership more than pays for itself. If you have questions about NARFE Perks, please call 800-456-8410 (press 0) or email us at perks@ narfe.org.

USE OUR UPDATED MEMBERSHIP BROCHURES TO RECRUIT The NARFE membership brochure (F-135) has been refreshed for 2021—be sure to keep a few handy in case you run into fellow Feds. Strike up a conversation and mention your involvement with NARFE. When they ask, “What’s NARFE?” give them your elevator speech and hand them a brochure. Email us at membership@narfe. org and someone on our team will send you as many brochures as you need.

NARFE MEMBER BENEFITS • Access the NARFE Federal Benefits Institute for powerful resources to help you fully understand and manage your benefits.

Active and Retired Federal Employees ... 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 questions.

Who Should Join NARFE?

If your future security is tied to federal retirement benefits—federal retirees, current employees, spouses and individual survivors—you should join NARFE.

• Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits. • Get NARFE Magazine with news and insights for the federal community. • Save time, hassle and money with NARFE Perks. • The opportunity to get involved at the local level by joining a chapter in your area. 1Q6

NARFE MEMBERSHIP APPLICATION YES. I want to join NARFE for the low annual dues of $48.

q Mr. q Mrs. q Miss q Ms.

q MasterCard

______________________________________________

Full Name

______________________________________________

Street Address Apt./Unit

______________________________________________

City

State

ZIP

______________________________________________

Phone

______________________________________________

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

q Active Federal Employee Spouse

q Annuitant Spouse

q VISA

q Discover

q AMEX

___________________________________________ Card No. Expiration Date _____ /________ mm

______________________________________________

q Annuitant

PAYMENT OPTIONS q Check, Money Order or Bill Pay (Payable to NARFE) q Bill me (NARFE membership will start when payment is received.) q Charge my:

yyyy

___________________________________________ Name on Card ___________________________________________ Signature ___________________________________________ Date

TOTAL DUES $48 Annual Dues X ___________ = ___________ Per Person # Enrolling Total Dues Dues payments are not deductible as charitable contributions for federal income tax purposes.

q Survivor Annuitant

q Please enroll my spouse _________________________________________

Spouse’s Full Name

LOOKING TO MEET OTHERS in the federal community and participate in NARFE at a local level? Call 800-456-8410 to learn about a NARFE chapter in your area.

_________________________________________

Would you like to receive a FREE one-year chapter membership? Choose one: q Chapter closest to home OR q Chapter #____________

THREE EASY WAYS TO JOIN

MAY WE THANK SOMEONE? Did someone introduce you to NARFE? Please provide their Name and Member ID.

Spouse’s Email

1. Complete this application and mail with your payment to NARFE Member Services / 606 N Washington St / Alexandria, VA 22314-1914.

2. Join online at www.NARFE.org. 3. Call 800-456-8410, Monday through Friday, 8 a.m. to 5 p.m. ET.

___________________________________________ Recruiter’s Name ___________________________________________ Recruiter’s Membership ID 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. (01/21)

NARFE News

2021 FEDERATION CONFERENCES

This information was correct as of late March; because of potential COVID‑19 restrictions, please contact your federation to make sure these details are current. COLORADO: October 7 in Aurora

NEBRASKA: May 13-14 in Lincoln

ILLINOIS: September 27-29 in Normal (For May 19 election, contact Cynthia Soltes, cynthiasoltes@sbcglobal.net, or visit www.narfe.org/il)

NORTH CAROLINA: May 12, virtual (register by email to Register@ NCNARFE.org)

MARYLAND: May 2-4 in Ocean City

OKLAHOMA: August 26-27, location to be determined

MASSACHUSETTS: May 6-7, virtual (register at https://us02web.zoom. us/j/87354549958)

OREGON: May 16-18 in Newport (if virtual, visit https://global. gotomeeting.com/join/748455997)

MINNESOTA: October 19-20 in Breezy Point

SOUTH DAKOTA: August 18-20 in Pierre VIRGINIA: October 11-13 in Richmond

As NARFE commemorates its centennial, NARFE Magazine is providing a look back at milestones for the organization and its work on behalf of federal civilian employees, retirees and their survivors. Less than a year before NARFE was founded, the first civil service retirement law for federal workers was passed. The Civil Service Retirement Act (CSRA) was signed into law by President Woodrow Wilson on May 22, 1920; it went into effect August 1 of that year. Six years later, NARFE saw its first legislative victory in an update to CSRA, with an amendment that increased annual retirements to $1,000, up from a maximum annuity of $720. Today, NARFE continues to work tirelessly to defend and advance the earned pay and benefits of America’s civil servants. Visit narfe.org/centennial for more about NARFE’s century of service. Eargo and GEHA are proud sponsors of NARFE’s Centennial.

NARFE MAGAZINE MAY 2021

Join NARFE’S CENTURY CLUB With Your Donation of $100 or More in 2021

Help NARFE celebrate 100 years of fighting for the earned pay and benefits of federal employees and retirees. Please consider a donation of $100 or more to NARFE’s Centennial fundraising campaign. www.NARFE.org/donatenow

With NARFE’s thanks, you will receive: • A commemorative NARFE centennial key ring • Recognition in the December NARFE Magazine, on NARFE.org and at NARFE headquarters • Early distribution of the 2022 NARFE calendar With your generous contribution, NARFE will be well-positioned to continue the fight to preserve the benefits and recognition federal employees and retirees deserve.

Donations of any amount are greatly appreciated and will be recognized on NARFE.org.

Enclosed is my NARFE donation: $ __________________

❑ CHECK ENCLOSED (payable to NARFE)

❑ Mr. ❑ Mrs.

OR CREDIT CARD INFORMATION:

❑ Miss ❑ Ms.

FR-FR21CEN

Name: ______________________________________________

❑ MasterCard

Address:_____________________________________________

Card Number: _____________________________________

City: ________________________________________________

Expiration Date: __________(mm)/ ________ (yy)

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3-Digit Security Code: __________ Date: _______________

ZIP:_________________________________________________

Signature:_________________________________________

Member Number: ______________________________________

Name: (please print) _________________________________

❑ VISA

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PLEASE MAIL COUPON AND CHECK TO: NARFE DONATE NOW, Attn: Fundraising 606 N. Washington St., Alexandria, VA 22314

Donations to NARFE are not tax-deductible for federal income purposes. NARFE tax MAGAZINE www.NARFE.org

USE YOUR NARFE PERKS AND YOUR MEMBERSHIP WILL MORE THAN PAY FOR ITSELF! PRODUCTS

ADT Home Security 844-556-6571 | www.protectyourhome.com/offer-detail

Get Your FREE* ADT-monitored home security system today AND $100 Visa reward card from Protect Your Home ADT Authorized Premier Provider. A safer home and peace of mind are just one click away. *New customers only. Visit website for full details of offer.

NEW!

LegalShield 410-419-7130 | www.legalshield.com/info/narfe

Whether it’s big, small or somewhere in between, you have affordable legal help when you need it. Members receive the discounted rate of $16.95 for individuals and $18.95 for families of 10 (two adults and up to 8 children).

Office Depot 855-337-6811 x 2897 | www.officediscounts.org/narfe

Because you’re a member of NARFE you have access to exclusive, members-only discounts at Office Depot and OfficeMax. Office Depot and OfficeMax offer thousands of products discounted below retail pricing both online and in any store location. With your NARFE membership, you can save up to 75% off regular prices (as listed on officedepot.com) on our Best Value List of preferred products. Create an account and browse through our discounts, or shop in-store by printing your FREE Store Purchasing Card. Visit https://officediscounts.org/ narfe for details and more! Text NARFESPC to 833‑344‑0228 and save your free store discount card on your phone. *Tech, software and select furniture items are not part of the discount program.

Omaha Steaks www.omahasteaks.com/NARFE

ENJOY FREE SHIPPING ON EXCLUSIVE COMBOS AND AN EXTRA 10% OFF YOUR ENTIRE ORDER WITH OMAHA STEAKS! Omaha Steaks delivers the finest in gourmet steaks, seafood, poultry, sides and desserts. NARFE members can enjoy FREE SHIPPING on select combos and an additional 10% DISCOUNT off entire order.

Purchasing Power www.PurchasingPower.com/NARFE

While not a discount program, Purchasing Power is an exclusive purchase program helps members buy brand-name computers, electronics, appliances and furniture via annuity allotment when cash is not an option. No credit check or down payments.

Sam’s Club 877- 579-1201 l Use the Link Below to Sign Up Now!

NARFE Members can now take advantage of huge savings at Sam’s Club with an exclusive membership offer! Save up to 40% on a 1-year membership and receive a limited-time free gift upon purchase! To sign up please visit: www.rebrand.ly/narfe-samsclub

Ship Sunshine www.shipsunshine.com

Ship Sunshine offers cheery gifts - at all price levels - for all occasions, and especially for no occasion at all! You can also build your own custom gift and include personalized items. Use promo code NARFE at www.shipsunshine.com for a 5% discount!

MOVING SERVICES

Coleman Allied 850-375-0917 | jack.jacobs@colemanallied.com

With over 300 agency partners and an entire team dedicated to a quality move experience, Coleman Allied provides customized discount levels for all NARFE members for Interstate moves. *The NARFE pricing only applies to moves that leave the state you currently reside in.

Wheaton World Wide Moving 800-248-7960 | narfe@wvlcorp.com

At Wheaton, we know interstate relocation is much more than trucks and boxes. With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation.

NARFE Insurance Services 800-233-5764 | www.narfeinsurance.com

INSURANCE

Designed exclusively for NARFE members, (plans administered by Mercer) Senior Age Whole Life Insurance, Senior Term Life Insurance, Hospital Income and Short Term Recovery Insurance, Dental Insurance, Vision Insurance, AssistPlus, Discount Prescription Plan and Pet Insurance.

Choice Hotels International 800-258-2847 | www.choicehotels.com

TRAVEL & TRANSPORT

With 6,400 hotels throughout the world, Choice Hotels offers something for everyone. As a member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967.

Enterprise Rent-A-Car® Book Now! https://partners.rentalcar.com/narfe

When you’re ready to go, Enterprise Rent-A-Car makes it easy. We offer everyday low rates on a great selection of cars, trucks and vans and customers are picked up at no extra cost*. See website for exclusions.

Extra Holidays 800-428-1932 | www.Extraholidays.com

Excellent service and the finest comforts are standards you can always rely on with Extra Holidays. With more spacious floor plans than a regular hotel, you can enjoy a One-, Two- or Three-Bedroom suite with partial or fully equipped kitchens. Advanced reservations required.

Hotel Engine Link https://members.hotelengine.com/join/narfe175

The National Active and Retired Federal Employees Association is proud to partner with Hotel Engine, a private hotel booking platform, to connect affinity organizations and their members to deeply discounted hotel rates. Top benefits of your complimentary membership include: • An average savings of 26% off public rates at 150,000+ hotels globally • No contracts, annual fees, or spending minimums • 24/7, U.S.-based customer support Sign up at: hotelengine.com/join/narfe175

National Car Rental® 800-CAR-RENT | www.nationalcarrental.com

NARFE members receive great rates with National Car Rental! At National, we pride ourselves on always providing you with unsurpassed convenience and choice. Book Now! https://partners.rentalcar.com/narfe

Brookdale Senior Living Communities 877-713-2762 | www.brookdale.com/narfe

WELLNESS

As the largest operator of senior living communities in the US, Brookdale has over 1,000 locations all across the country. Members are eligible for 7.5% discount at Brookdale Independent Living, Assisted Living and Memory Care communities and 10% discounts on Brookdale Private Duty Home Care. Discounts are for new move-ins/customers only.

Life Line Screening 800-324-9906 | www.lifelinescreening.com/NARFE R

PRE-PLANNING

Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-of-the-art ultrasound technology in your neighborhood. Operator code BKHN075.

Neptune Society 800-NEPTUNE (637-8863) | www.neptunesociety.com

Our prearranged plans cover all necessary expenses for one guaranteed price even if the services are not needed for 40 or 50 years. The Neptune Society offers a $100 discount to all NARFE members. Discounted offer is not valid for residents of Louisiana, Tennessee and Kentucky. Void where prohibited. *Discounted offer is not valid for residents of Louisiana, Tennessee and Kentucky. Void Where Prohibited.

ADDITIONAL PERKS

SEE HOW MUCH YOU CAN SAVE AT

www.NARFE.ORG/memberperks

The Way We Worked

The Beagle Brigade In 1984, the U.S. Animal and Plant Health Inspection Service (APHIS), part of the Department of Agriculture, began training beagles to sniff out prohibited agricultural products at major U.S. ports of entry. APHIS chose beagles for their friendly temperament and remarkable sense of smell. By 2001, members of the “Beagle Brigade” had helped agents detect roughly 75,000 prohibited items annually. Today, APHIS collaborates with the Department of Homeland Security’s Customs and Border Protection to employ beagles at airports and land crossings all over the United States. PHOTO from the records of the Department of Agriculture, National Archives, courtesy of the National Archives History Office, in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. To join, visit www.shfg.org.

NARFE MAGAZINE MAY 2021

DID YOU KNOW? In addition to beagles, APHIS’ National Detector Dog Training Center trains Labrador retrievers to detect nutria (an invasive rodent species) in Maryland and Jack Russell terriers to combat the spread of brown treesnakes on islands in the Pacific. Visit www.aphis.usda.gov/

The Way We Worked celebrates the past 100 years of public service through archival images. Eargo and GEHA are proud sponsors of NARFE’s Centennial.

5 Great Reasons

Why Oticon More could be the answer to your hearing problems. TM

1 Oticon More with Brain HearingTM technology

A revolutionary hearing aid that gives the brain more of the relevant information it needs to make better sense of sound. So you can get better speech understanding with less effort and the ability to remember more.

3 Connectivity made easy

Simple, wireless connectivity to your favorite devices via Bluetooth®. Make hands-free calls, stream music, connect to smart devices and more!

2 The hearing aid with built-in intelligence Works more like how the brain works because it learned through experience. Clinical studies prove Oticon More delivers 30% more sound to the brain and increases speech understanding.1

4 Never change a battery again

A trouble-free rechargeable solution allows you to recharge at night for a full day of hearing. FREE charger included!2

5 No out of pocket expense

Take advantage of your $2500 hearing benefit! You may be eligible for a pair of Oticon MoreTM3 hearing aids for $0 out of pocket.3

This special offer for federal employees and retirees is available only at Your Hearing Network locations. To find your location call 1-877-696-5335. Compared to Oticon Opn STM, Santurette, et al. 2020. Oticon More clinical evidence. Oticon Whitepaper Lithium-ion battery performance varies depending on hearing loss, lifestyle and streaming behavior. 3 Your out-of-pocket costs may vary depending on plan benefits, eligibility, deductible, co-insurance, and model of device chosen. This is not a guarantee of coverage or payment. Benefit is not available through all insurance plans. Please call us to verify your coverage. 1 2

Learn how to save on your hearing health!

Two hearing aids with $0 out-of-pocket! Call today to see if you qualify* With more than 30 years in hearing care, HearUSA has helped over 1 million people experience a better quality of life through better hearing. As a NARFE member you have access to the latest hearing aid technology. Receive the highest level of quality hearing healthcare service in the industry. There have been such amazing advancements in hearing aid technology — the options are almost limitless in terms of size, comfort, sleek styling and rechargeable technology. Conversation in background noise, hearing the television and speaking on the phone all become easy again!

Telehealth Available • FREE service visits for one year • FREE three year warranty, loss & damage, batteries • Risk-free 60-day trial • 10% off hearing accessories at hearingshop.com

In-person or telehealth appointments available. Schedule your FREE hearing appointment today: 1-855-252-0025

*This is not insurance and insurance benefits vary. Some restrictions apply. 1 year battery supply with purchase of hearing aids. Offer valid at participating HearUSA providers only. Call for details.