August 2019 NARFE Magazine

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COVER STORY

Volume 95 • Number 8

THIS TIME, IT’S PERSONAL: TIPS FOR STAYING CYBER-SAFE TODAY GRASSROOTS ADVOCACY MONTH:

YOUR STORY MATTERS

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SPECIAL SECTION

48 2019 Ballot Referendum WASHINGTON WATCH

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NARFE Testifies on Proposed OPM-GSA Merger

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NARFE Testifies at Hearing on the Future of Civil Service

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NARFE’s Grassroots Advocacy Month Is Here

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Federal Retirement Fairness Act Backs Feds Who Served in Temporary Positions

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COVER STORY THIS TIME, IT’S PERSONAL Cyber criminals have gotten more sophisticated in their techniques, often impersonating people and brands you trust.

Stay safe with these tips.

Bill Tracker

COLUMNS

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From the President

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Managing Money

DEPARTMENTS

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YOUR STORY MATTERS How do you get through to your representatives and senators during Grassroots Advocacy Month? Cut through the noise by telling them exactly how policies affect you.

42 For the Record 44 NARFE News 50 Member Perks

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On the Web

Questions & Answers

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52 The Way We Worked

VISIT US ONLINE AT:

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NARFE National Headquarters

COVER STORY

Volume 95 • Number 8

THIS TIME, IT’S PERSONAL: TIPS FOR STAYING CYBER-SAFE TODAY GRASSROOTS ADVOCACY MONTH:

YOUR STORY MATTERS

ON THE C OVER Illustration by GRAPHEK

FOLLOW US ON TWITTER:

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AUGUST 2019 | Volume 95 | Number 8

EDITORIAL DIRECTOR Helen Mosher SENIOR EDITOR Mabel Yu COMMUNICATIONS ASSISTANT Precious Dorch-Robinson GRAPHIC DESIGN GRAPHEK Beth Bedard EDITORIAL BOARD Kenneth J. Thomas, Kathryn E. Hensley, Barbara Sido EDITORIAL OFFICE: NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Email: communications@narfe.org ADVERTISING SALES: Warren Berger Media People Inc. 122 East 42nd St., Suite 1622 New York, NY 10168 Phone: 212-779-7172, ext. 223 Email: wberger@mediapeople.com NARFE FOR THE VISUALLY IMPAIRED ON THE TELEPHONE: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-504-7300 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.

NATIONAL OFFICERS KENNETH J. THOMAS President; natpres@narfe.org KATHRYN E. HENSLEY Secretary/Treasurer; natsectreas@narfe.org EXECUTIVE DIRECTOR BARBARA SIDO, execdir@narfe.org

REGIONAL VICE PRESIDENTS

REGION I James C. Risner (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) TEL: 207-540-6233 EMAIL: rvp1@narfe.org REGION II Kathy Adams (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) TEL: 302-697-6650. CELL: 302-561-5660 EMAIL: adamskhawaii@aol.com REGION III Clarence Robinson (Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 EMAIL: crobin8145@att.net

REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: pappysdad@cobridge.tv REGION VII Rodney L. Adelman (Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: narfe7vp@cox.net REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) TEL: 707-644-7565 EMAIL: HLZajac125@gmail.com

REGION IV Robert L. Helfrich (Illinois, Indiana, Michigan, Ohio and Wisconsin) TEL: 317-501-1700 EMAIL: rvp4@narfe.org

REGION IX Richard Wilson (Alaska, Idaho, Montana, Oregon and Washington) TEL: 253-210-5609, CELL: 425-736-6899 EMAIL: narfe1404@comcast.net

REGION V Cindy Reneé Blythe (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) TEL: 785-256-1450 EMAIL: mrsdocbusyb@yahoo.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

HERE’S HOW TO CONTACT US… 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 “Update My Record”

TO REACH A FEDERAL BENEFITS SPECIALIST:

EMAIL fedbenefits@narfe.org NARFE HEADQUARTERS

606 N. Washington St. Alexandria, VA 22314 703-838-7760 Hours of operation: Monday-Friday, 8 a.m.-5 p.m. ET

NARFE.org

narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $40. 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 © 2019, 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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AUGUST OPPORTUNITIES

W

ashington, DC in August?

Brutal! The downside: It can be hot and humid, with heavy

thunderstorms or intense sun. The upside: Politicians leave the heat and humidity of DC for the intense heat of political activity in their home states and districts.

That creates an opportunity! Americans can usually see their U.S. Representatives and Senators without traveling to Washington.

And that’s why August is NARFE’s Grassroots Advocacy Month.

The halls of Capitol Hill go quiet every August as members of Congress abandon Washington for their summer recess. This year, with the presidential election already in full swing and a number of closely watched congressional races across the country, many members of Congress will hold town hall-style meetings to hear what their constituents have to say. These events offer voters the best opportunity to let their elected representatives know what is important to them.

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.

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Although some of our chapters take the summer off, hosting a “Meet Your Representatives” event could prove extremely valuable. While your two Senators and House Representative aren’t running for re-election this year, they’re still looking for opportunities to greet constituents—so be sure to invite them to meetings in August. A chapter should invite all the NARFE members in the district, or several nearby chapters, to cohost the meeting, and also open it up to the public. And don’t forget to notify local media about the upcoming meeting. Not only would members get to hear the views of those who represent them, but NARFE could also garner some positive publicity for putting on the program.

Read up on policy matters so that you can be an informed voter and back the candidates who support NARFE’s legislative issues.

Remember: 435 House seats and 33 Senate seats are up for grabs next November.

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

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Washington Watch

NARFE TESTIFIES ON PROPOSED OPM-GSA MERGER

N

ARFE National President Ken Thomas testified before the House Oversight and Reform Subcommittee on Government Operations on May 21

regarding the administration’s proposed merger of the Office of Personnel Management (OPM) with the General Services Administration (GSA).

Thomas argued that the administration has not offered compelling evidence showing that the reorganization would improve OPM’s abilities to carry out its mission and fulfill its responsibilities. Further, he contended that should this merger come to pass, the federal workforce would have fewer safeguards against politically motivated personnel decisions.

Lawmakers from both parties shared NARFE’s skepticism toward the proposal.

Subcommittee Chairman Gerry Connolly, D-VA, argued that the proposal is “short-sighted, inadequate, and uncompelling,” and that “the administration has not provided this committee with a clear and convincing reason for dismantling this key federal agency.” Subcommittee Ranking

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Member Mark Meadows, R-NC, spoke less forcefully but still clearly expressed doubts about the merger. He reflected, “I don’t think we’ve ever done a reorganization like this in the federal government.” Meadows favored having a “more effective and efficient” personnel agency without disassembling it.

While Margaret Weichert, the deputy director of management for the Office of Management and Budget (OMB) and acting director

ACTION ALERT!

of OPM, made a case for the administration’s proposal, every other witness voiced concerns with the merger. Notably, the Government Accountability Office, OPM’s inspector general, and former OPM Director Linda Springer, who served during the George W. Bush administration, all took issue with the lack of supporting evidence and analysis to justify the merger.

In NARFE’s testimony, Thomas explained that the administration’s interest in the merger has been “driven in large part by the budgetary impact caused by the transfer of the National Background Investigations Bureau (NBIB) from OPM to the Department of Defense (DOD).” However, he asserted, “the administration’s

AUGUST

After engaging in any August activities with your member of Congress or their staff, please complete the Congressional Meeting or Event Feedback Form in the “Surveys” section of the Legislative Action Center. Doing so keeps NARFE apprised of meetings and further strengthens our advocacy efforts.

Reporting your meetings helps the advocacy department echo your message in Washington.

failure to prepare for the budgetary consequences of this transfer and properly communicate them to Congress … is not adequate justification for the transfer of OPM’s remaining functions to GSA.” Thomas also disagreed with the administration’s stance that the reorganization would better align OPM’s resources to its mission of promoting an efficient civil service.

He pointed out that “whether the administration likes it or not, administering federal retirement health care and insurance programs are a key part of OPM’s responsibilities.” If the plan is to ensure greater focus on workforce management, he continued, “the administration needs to explain how OPM’s remaining functions

will receive the attention and resources they deserve.”

Currently, the OPM director heads an independent agency.

Thomas further argued that the merger threatens the independence of OPM that Congress intended. A new head of human capital management and civil service policy would be placed at OMB, and while the person in that position would be presidentially appointed, he or she would not be Senate confirmed, unlike the current OPM director.

The proposed structure, Thomas attested, “raises red flags that the move is intended to exert undue political influence on personnel decisions.”

While the congressional hearing highlighted the

NARFE TESTIFIES AT HEARING ON THE FUTURE OF THE CIVIL SERVICE

O

n May 16, NARFE Staff Vice President of Advocacy Jessica Klement testified before the National Commission on Military, National and Public Service on behalf of NARFE, its 200,000 dues-paying members, and the interests of the more than five million federal employees and annuitants who have dedicated their careers to public service. In 2017, the National Commission was created by Congress to consider and develop recommendations centered on

the need for a military draft and the ways to foster a greater attitude and ethos of service among American youth. The Commission intends to issue its final report no later than March 2020 and conclude its work by September 2020.

The hearing focused on the government’s need for employees with critical skills in burgeoning fields—such as science, technology, engineering and mathematics (STEM)—and how to attract individuals with those skills to civil service.

(Continued on p. 10)

many inadequacies of the administration’s plan to merge OPM with GSA, the administration has yet to back down from its intent to move ahead with aspects of the merger that it does not believe require congressional authorization. As of press time, it is still unclear how these efforts will play out.

Thomas’ full testimony is available on the NARFE website.

— BY JOHN HATTON, DIRECTOR OF LEGISLATIVE AND POLITICAL AFFAIRS

MYTH vs.

REALITY Myth: Military and civilian federal employee pay raises are required by law to be the same.

Reality: There is no law that requires federal civilian and military pay increases to match. However, there have been periods in the past where the pay increases were commensurate with each other. Based on data from the Congressional Research Service, civilian federal employees and military personnel received roughly the same pay increases from the late 1980s through the 1990s, a trend that largely continued until the three-year civilian pay freeze starting in 2011.

From 2014 to 2017, the increases were also the same, although they have differed since that time.

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Washington Watch

NARFE’S GRASSROOTS ADVOCACY MONTH IS HERE

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rassroots Advocacy Month is here, and there is no better time to connect with your legislators. Washington, D.C., grows quiet as members of Congress return to their districts and states for a month-long recess.

The August recess is the perfect time for NARFE members to reach out to their elected officials and advocate on behalf of the earned pay and benefits of the federal community. NARFE members should check their legislators’ schedules for town halls to attend and ask for support on NARFE’s Big Four legislative priorities.

NARFE leaders should have already scheduled meetings with legislators or their staff, but if you haven’t, don’t worry—it’s not too late to get in touch with your legislators’ offices today to schedule a meeting.

NARFE has identified four key legislative issues—the Big Four—that members and leaders should focus on during any August advocacy activity.

The first is congressional action on benefits cuts included in the administration’s fiscal year 2020 budget. Congressional leaders and the president will come back from recess needing to reach an agreement on annual spending levels. Any compromise could include cost offsets from federal pay or benefits reductions. Tell legislators to keep government running—and keep their hands off your earned benefits.

Cost-of-living adjustments (COLAs) ensure that the value of your hard-earned annuity keeps up with inflation and rising costs, but the current calculation is inadequate. COLAs for federal annuities are calculated using

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the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which does not accurately account for how seniors spend their money. The Fair COLA for Seniors Act, H.R. 1553, would instead calculate COLAs using the Consumer Price Index for the Elderly (CPI-E), which would better reflect seniors’ spending habits, such as increased costs associated with health care.

NARFE’s Big Four also focuses on securing a federal employee pay increase of 3.1 percent. In June, the House approved a spending bill that would override the president’s pay freeze and provide federal employees with a 3.1 percent average pay increase in 2020. The proposed raise—a 2.6 percent increase across the board and a 0.5 percent average increase to locality pay rates—is based on the most recent annual change in private-sector pay as measured by the Bureau of Labor Statistics’ Employment Cost Index. The raise would help government workers achieve parity with members of the military—a proposal to issue military personnel a 3.1 percent raise is on track for approval by the full House and Senate.

Finally, NARFE has opposed postal reform efforts that force postal retirees to either enroll in Medicare Part B or completely lose their earned retiree health benefits. As of press time, new postal reform legislation hadn’t been introduced, but NARFE will continue to staunchly oppose similar proposals. Legislation forcing mandatory Medicare coverage for current postal retirees changes the government’s promise regarding retirees’ health

benefits, setting a dangerous precedent for all federal retirees and removing personal choice at a significant additional cost to enrollees.

If you have any questions about NARFE’s Big Four legislative priorities or want to know how you can champion NARFE issues this month, please reach out to the NARFE advocacy department at advocacy@narfe.org or 1-800-4568410, option 3.

— BY SETH ICKES, GRASSROOTS PROGRAM ASSISTANT

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.bitly.com/ NARFE-grassroots.

FEDERAL RETIREMENT FAIRNESS ACT BACKS FEDS WHO SERVED IN TEMPORARY POSITIONS

R

eps. Derek Kilmer, D-WA, and Tom Cole, R-OK, reintroduced the Federal Retirement Fairness Act, H.R. 2478, which would allow federal employees who started their careers in temporary positions before moving into permanent roles to retroactively contribute toward their retirement for the years they held a temporary position.

After a change to the federal retirement system in 1989, affected employees could no longer make contributions to

System (FERS) the option to pay a deposit (equal to 1.3 percent of their salary plus interest) for each year of their temporary employment when no retirement reductions were taken from their salary. The payment enables the time spent in a temporary position to count toward their creditable service.

Rep. Kilmer noted in a press release, “Many federal employees begin their careers in temporary positions before transitioning to permanent (Continued on p. 10)

their retirement for the years they worked in a temporary position with the federal government. But many were unaware of this rule. As a result, a number of employees retired just shy of achieving full benefits, incurred penalties or worked for additional years to “make up” for the number of years they spent in a temporary position in order to receive full benefits.

The bill would give employees under the Federal Employees Retirement

Contribute To NARFE-PAC I want to make a monthly sustainer credit card contribution:

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Washington Watch

(Continued from p. 7) Klement’s opening remarks focused on the important role benefits play in attracting highly skilled workers; she argued that government benefits must be competitive with those offered by private-sector companies in order to match private-sector pay. Adding integral benefits like paid parental leave would put the government on par with the private sector—each of the 20 largest U.S. private-sector companies offer paid parental leave in some form. “Yet,” Klement noted, “the federal government, the largest employer in the country, offers nothing to its civilians.”

She also stated that the federal government needed to advertise its student loan forgiveness program as a benefit, instead of simply mentioning it to new hires.

Klement stressed the necessity of redesigning the program to make it user-friendly—99 percent of applicants to the loan forgiveness program are denied, partially due to user error and the lengthy, cumbersome application process.

Klement urged the Commission to abide by three key principles when considering (Continued from p. 9) status—so we need to have their backs.”

Rep. Cole also expressed his support, saying, “I am proud to join in introducing the Federal Retirement Fairness Act that allows federal workers, first hired under temporary status, to receive retirement credit for the entirety of their government service.

“The existing policy provides no benefit to federal

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Adding integral benefits like paid parental leave would put the government on par with the private sector. changes to federal benefits: maintain overall compensation at an equivalent or greater value, only apply prospective benefit changes to future hires, and preserve retirement security for public servants She emphasized that “benefit changes should not be a guise for overall compensation cuts” and that cutting the value of overall compensation “will only make it more difficult to recruit the public servants necessary to meet mission-critical skills gaps.”

Throughout her testimony, Klement noted the diminishing public perception of federal service, and how many Americans view the government negatively. Major events such as increasingly lengthy government shutdowns deter prospective employees, and Klement questioned whether younger workers would consider entering public service “knowing that he or she could go without a

employees or the federal government, but the buy-back option gives workers additional credit toward retirement which is an option they currently do not have available,” he added.

NARFE supports the Federal Retirement Fairness Act, as it would allow for years of hard work in service to the American public to count toward federal employees’ retirement.

— BY SETH ICKES, GRASSROOTS PROGRAM ASSISTANT

paycheck for weeks at a time while the government remains shut down over partisan bickering.”

Asked how to make Congress pay greater attention to attracting new talent to civil service, Klement said, “This is a Congress and an administration that reacts to crisis.” She argued that the civil service truly does have a crisis in federal hiring and that Congress needs to hear this message so that it will act on it.

Klement’s full written testimony can be found on NARFE’s website.

— BY SETH ICKES, GRASSROOTS PROGRAM ASSISTANT

LEGISLATIVE RESOURCES • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE advocacy department staff, distributed via email and available by phone (tollfree) at 800-456-8410, option 4 and online at www.narfe.org.

• Legislative Action Center: A one-stop site to send a letter to Congress, and more, at www.narfe.org.

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NARFE’s CONGRESSIONAL DIRECTORY

FOR THE 116th CONGRESS (2019-2020)

Features:

• Members of Congress by state delegation, with color photos, biographical data and congressional district maps.

• Members’ contact information, including addresses, phone and fax numbers, website addresses, social media contacts, district offices and key staffers.

• Complete listings of committees, subcommittees and leadership.

• Contact information for the White House, Cabinet, Supreme Court and federal agencies.

Be a stronger advocate with NARFE’s Congressional Directory at your fingertips

Order your copy of the new CONGRESSIONAL DIRECTORY today!

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Call NARFE’s Advocacy Department at 800-456-8410, option 3, to order by phone.

Washington Watch

narfe bill tracker THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO THE CONGRESSIONAL LEGISLATION THAT NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE

DC STATEHOOD

BILL NUMBER / NAME / SPONSOR H.R. 51: Washington, D.C. Admission Act / Del. Eleanor Holmes Norton, D-DC

WHAT BILL WOULD DO

LATEST ACTION(S)

Provides for the admission of the Referred to the House State of Washington, D.C. into Committees on Overthe Union. sight and Reform, and Rules

Cosponsors: 216 (D) 0 (R) H.Res. 23: Rep. Susan Davis, D-CA Cosponsors: 184 (D) 41 (R)

H.Res. 33/S.Res. 99 Rep. Stephen Lynch, D-MA / Sen. Gary Peters, D-MI

Expresses the sense of the House that Congress should take all appropriate measures to ensure that the United States Postal Service remains an independent establishment of the federal government and is not subject to privatization.

Referred to the House Committee on Oversight and Reform (H.Res. 33)

Expresses the sense of the House that the United States Postal Service should take all Cosponsors: 200 (D) 62 (R) appropriate measures to ensure the continuation of its six-day mail delivery service.

Referred to the House Committee on Oversight and Reform

H.Res. 60: Rep. David McKinley, R-WV

Expresses the sense of the House that the United States Postal Service should take all appropriate measures to restore service standards in effect as of July 1, 2012.

Referred to the House Committee on Oversight and Reform

Repeals the USPS’ prefunding requirement

Referred to the House Committee on Oversight and Reform

Cosponsors: H.Res. 33: 218 (D) 39 (R) S.Res. 99: 43 (D) 8 (R) 2 (I)

POSTAL REFORM

Expresses the sense of the Referred to the House House that the United States Committee on OverPostal Service should take all sight and Reform appropriate measures to ensure the continuation of door delivery for all business and residential customers.

H.Res. 54: Rep. Gerald Connolly, D-VA

Cosponsors: 155 (D) 22 (R)

H.R. 2382: Rep. Peter DeFazio, D-OR Cosponsors: 121 (D) 26 (R)

NARFE’s Position: 12

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Support

Referred to the Senate Committee on Homeland Security and Governmental Affairs (S.Res. 99)

Oppose

No position

EDITOR’S NOTE: These bills are all listed online at www.narfe.org/legislation/votervoice.cfm.

ISSUE

BILL NUMBER / NAME / SPONSOR H.R. 1254: The Equal COLA Act / Rep. Gerry Connolly, D-VA Cosponsors: 5 (D) 1 (R)

FEDERAL ANNUITIES

H.R. 1553: Fair COLA for Seniors Act of 2019 / Rep. John Garamendi, D-CA Cosponsors: 27 (D) 2 (R)

WHAT BILL WOULD DO

LATEST ACTION(S)

Provides Federal Employees Retirement System (FERS) retirees with the same annual cost-of-living adjustment (COLA) as Civil Service Retirement System (CSRS) retirees.

Referred to the House Committee on Oversight and Reform

Requires Social Security and federal retirement programs to use the Consumer Price Index for the Elderly (CPI-E) to calculate cost-of-living adjustments (COLAs) to retirement benefits.

Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Reform, and Armed Services

H.R. 2478: The Federal Re- Allows federal employees tirement Fairness Act / Rep. who started their careers in Derek Kilmer, D-WA temporary positions before transitioning into permanent Cosponsors: 18 (D) 6 (R) roles to retroactively contribute toward their retirement for the years they held a temporary position.

Referred to the House Committee on Oversight and Reform

H.R. 1073/S. 426: Federal Provides a 3.6 percent federal Adjustment of Income employee pay raise in calendar Rates (FAIR) Act / Rep. year 2020.

Gerry Connolly, D-VA / Sen. Brian Schatz, D-HI

Referred to the House Committee on Oversight and Reform (H.R. 1073)

Cosponsors: H.R. 1073: 46 (D) 0 (R) S. 426: 13 (D) 0 (R) FEDERAL COMPENSATION

H.R. 1534/S. 1174: Federal Employee Paid Leave Act of 2019 / Rep. Carolyn Maloney, D-NY / Sen. Brian Schatz, D-HI Cosponsors: H.R. 1534: 37 (D) 2 (R) S. 1174: 4 (D) 0 (R)

GPO/WEP

H.R. 141/S. 521 Social Security Fairness Act of 2019 / Rep. Rodney Davis, R-IL / Sen. Sherrod Brown, D-OH

Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 426)

Provides federal employees with 12 weeks of paid leave in connection with the birth, adoption, or foster placement of a child and other medical conditions.

Referred to the House Committees on Oversight and Reform, and House Administration (H.R. 1534)

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

Referred to the House Committee on Ways and Means (H.R. 141)

Cosponsors: H.R. 141: 144 (D) 46 (R) S. 521: 25 (D) 3 (R) 2 (I)

NARFE’s Position:

Support

Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 1174)

Referred to the Senate Committee on Finance (S. 521)

Oppose

No position

W W W. N A R F E . O R G

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Questions & Answers

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

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

EMPLOYEES DEFERRED RETIREMENT FOR FEDERAL LAW ENFORCEMENT OFFICERS (LEOS)

Q

I am younger than 50 and have over 20— but fewer than 25—years of federal law enforcement service under the Federal Employees Retirement System (FERS).

If I separate now, when will I qualify for a deferred retirement? Will I receive the special group formula for a deferred retirement?

A

The special group formula (for special category employees such as LEOs and firefighters) is only used in the computation of immediate retirements.

Since you have over 20 years of special group service, you would qualify for a deferred retirement under FERS at your minimum retirement age (with no reduction for early age).

However, with a deferred retirement, you would not qualify for coverage under the Federal Employees Health Benefits (FEHB) or the Federal Employees’ Group Life Insurance (FEGLI) programs. A deferred retirement 16

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also does not include the FERS Retirement Annuity Supplement (RAS), and it won’t include any unused sick leave for annuity computation purposes.

If you decide to separate from federal service now, you might consider returning to federal service later and then separate once you are old enough for an immediate retirement under FERS—in your case, on or after age 50. If you decide not to return to a special category position, you could potentially return to any regular FERScovered position with any government agency, separate on or after your 50th birthday

and immediately qualify for your LEO retirement (under the special group formula), which would then include FEHB, FEGLI and the FERS RAS, and any unused sick leave credit would count toward the computation of your annuity (unreduced for early age). You could potentially do this almost immediately after you are hired.

Alternatively, if you continued your federal service as a LEO until you either reach age 50 or accrue 25 years of federal service as a LEO (whichever occurs first), you would qualify for immediate retirement as a LEO under the special group formula. You would also be allowed to continue FEHB and FEGLI coverage as long as you have maintained your coverage for the last five years of your federal career leading up to your date of separation for retirement.

This immediate retirement as a LEO could also include service credit for unused sick leave in the

FOCUS ON FEDERAL BENEFITS UPCOMING CHANGES TO THRIFT SAVINGS PLAN (TSP) TSP employees have been working hard to develop changes to the TSP program that will give both active and retired federal employees more flexibility in regards to their withdrawal options. In advance of the changes going into effect, the TSP recently updated its fact sheet, Questions and Answers about Changes to TSP Withdrawal Options: www.tsp.gov/PDF/formspubs/tspfs10.pdf.

Here are some of the highlights: • All of the new withdrawal options (including related TSP forms, publications, webpages and online tools) will be available September 15, 2019.

• From now through September 6, you will continue to have the current withdrawal options available. If you need to withdraw money before the upcoming changes take effect, TSP must receive your properly completed request by 11:59 p.m. on September 6, 2019.

• TSP will not be able to accept withdrawal requests during the brief period between September 7 and September 14. This transition period allows TSP staff to finish processing withdrawal requests they receive before the rules change as well as prepare to accept requests with the new withdrawal options.

• TSP is enhancing its online tools (in the My Account section of the tsp.gov website) to help you make more efficient withdrawals. These enhancements will also reduce the likelihood of errors that cause delays, rejections or unintended withdrawals that can’t be reversed.

computation of your annuity, and you would qualify to receive the FERS RAS until age 62.

BREAK IN LAW ENFORCEMENT OFFICER SERVICE

Q

If I separate voluntarily from federal law enforcement officer (LEO) service under Federal Employees Retirement System (FERS) in the middle of my career and later return to federal service under a secondary law enforcement position, will this affect my future eligibility for special group retirement?

A

It’s our understanding that, after a break in federal law enforcement service (of more than 3 days), if you return to a secondary law

enforcement position, you would have to start your “20-year clock” towards eligibility for a LEO retirement all over again. In other words, your past LEO service could count towards your FERS Service Computation Date (SCD), but it would not count towards your LEO SCD. However, if you return to a primary position, you could pick up where you left off, and your past LEO service could count towards both your FERS Retirement SCD and your LEO SCD.

SPECIAL CATEGORY EMPLOYEE APPROACHING MANDATORY RETIREMENT AGE

Q

I am a special agent with Homeland Security Investigations and am mandated to retire in November

2019. I would like to remain with the agency and not retire, if possible. I know that I can request an extension until age 60, but it’s subject to the agency’s discretion.

Is it true that if I don’t wish to retire, my agency is required to provide me with a noncovered position? I have asked my personnel department about this, but they have not yet responded.

A

Your agency is not required to find you a position that allows you to continue federal service beyond your mandatory retirement age.

If you are a special category employee (such as a law enforcement officer or firefighter) under FERS, you are correct that agency heads are authorized to exempt you from mandatory W W W. N A R F E . O R G

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Questions & Answers

separation until age 60 if it is in the public interest.

Once the date of mandatory separation is determined for a special category employee, the employing agency must notify the employee of the date of separation in writing at least 60 days in advance of that date. Action to separate the employee is not effective without the consent of the employee until the last day of the month in which the 60-day notice expires.

If you are unable to obtain the special extension authority from your agency head, you can look for a nonspecial category position to transfer to that would allow you to continue federal service until you are ready to

18

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retire. But it would be up to you to find such a position that conveys regular FERS coverage.

If you don’t like the new job, you can always apply for your special category retirement at any time, without returning to a special category position.

RETIREES REQUIRED MINIMUM DISTRIBUTIONS (RMDS) AND THE UPCOMING CHANGES TO THRIFT SAVINGS PLAN (TSP) WITHDRAWALS

Q

I’m retired from federal service. I turned 70½ in July 2019, which is before the new TSP options

are expected to take effect in September. Do I need to take any action before September regarding withdrawals?

A

Since you are no longer federally employed, you have until April 1, 2020 to take out the first year’s required minimum distribution (RMD); however, you may not want to wait that long because you will have to take your second year’s RMD by the end of 2020.

Not everyone is interested in taking two taxable RMDs in one tax year, as that could also increase their Medicare Part B premiums two years later.

If you wish to receive your first year’s RMD in 2019, feel

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Questions & Answers

free to use either your current or any of the new withdrawal options available in September to take your RMD before the end of December 2019. There is a cutoff date so TSP can make the distribution before the end of the 2019 tax year—call TSP directly to find out when they recommend that you file your request for the distribution so that it’s paid out before the end of 2019.

If you don’t file a distribution request for your first year’s RMD this year, then the TSP is required to notify you in early 2020. If you still don’t file a distribution request, they will automatically distribute your first year’s RMD sometime in March 2020 (before April 1). If you don’t exercise a withdrawal request for your second year’s RMD in 2020, the new rules state that TSP will automatically distribute your second year’s RMD before the end of December 2020. This new TSP rule will also apply to all of your remaining RMDs for each year that you maintain a TSP balance.

MEDICARE PART A PREMIUM-FREE

Q

I was a Civil Service Retirement System (CSRS) employee when Medicare taxes first started being deducted from my salary in January 1983.

By the time I retired in June of 1991, I had paid Medicare taxes for about 8 years. In 1993, I took a job in the private sector and paid about one more year of Medicare taxes, but then I left the country to live overseas. Over two decades later, I now expect to return to and reside in the United States. Even 20

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though I did not pay Medicare taxes for 10 years of my working life, do I qualify for Medicare Part A premium-free?

A

Medicare Part A (hospital coverage) is typically premium-free for folks who have paid Medicare taxes from their wages (or selfemployment income) for 10 or more years of their working life and to those who are married to individuals who have done so.

However, based on the information that you provided, your Medicare Part A should be premium-free as well. Since you were a federal employee during January 1983, you are deemed to have paid the full Medicare taxes.

Here’s a quote from our friends at Medicare: “Individuals who were federal employees at any time during January 1983 are deemed to have paid the Medicare Part A portion of the Federal Insurance Contribution Act (FICA tax) on their federal earnings prior to January 1983. These individuals earn government employment quarters of coverage (GEQCs), which may be used to insure them for Part A, but not for Title II (Social Security), benefits.”

Federal employees who retired before January 1983 or were hired or rehired after January 1983 can only obtain Medicare Part A premium-free if they have 40 working credits under their own employment or through a spouse’s employment. Since workers can only earn four credits per year, it typically takes 10 years to obtain the necessary credits.

FEDERAL EMPLOYEES’ GROUP LIFE INSURANCE (FEGLI) REDUCTION OPTIONS

Q

I retired in 2011 and chose the 50 percent reduction for my basic life insurance coverage. In 2018, when I reached age 65, my life insurance amount started reducing by 1 percent per month. However, my monthly premium has remained the same.

Shouldn’t the monthly premium amount have also started reducing?

A

If you elected the 50 percent reduction option for your basic coverage under FEGLI, and you didn’t see any decrease in your monthly premium after you turned 65, you should definitely contact OPM and discuss this.

It’s possible that they made a mistake and owe you money based on an overpayment of your FEGLI premiums.

Your basic insurance amount (BIA) is based on your final salary and schedule rounded up to the nearest thousand dollars, plus $2,000. For example, if you were a full-time employee and your final salary was $97,500 upon retirement from federal service, your BIA would be valued at $100,000.

The cost of keeping your basic insurance with the 50 percent reduction option in retirement before the age of 65 would be $1.035 per thousand dollars worth of coverage. Once you reach age 65, the cost should drop to $0.71 per thousand dollars worth of coverage; at the same time, the BIA would begin to reduce in value, at the rate of

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Questions & Answers

1 percent each month that you live in retirement beyond the age of 65, until it reaches the full 50 percent reduction, 50 months later. Since it takes just over four years to reach the full reduction, you would be 69 by the time the value of your BIA is equal to 50 percent of the original.

Using the $100,000 BIA example, electing the 50 percent reduction for Basic coverage would cost $103.50 per month and at age 65, the cost would be reduced to $71 per month—where it would remain constant until the annuitant either changes the coverage to the 75 percent reduction option (which is premium-free) or passes away.

The following weblinks point to the most recent updates (2016) to a life insurance calculator and rate sheet that you may find useful. www.opm.gov/retirementservices/calculators/feglicalculator/ and www.opm.gov/ retirement-services/publicationsforms/benefits-administrationletters/2015/15-203a1.pdf.

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.

NARFE at Your Service At NARFE Headquarters, experts are available to answer questions and to assist in helping with a variety of benefit matters.

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Your Federal Benefits Questions Answered!

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Cover Story

This Time, It’s

Personal Tips For Staying Cyber-Safe Today

By David Tobenkin

24

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You might think technology experts would be a

few steps ahead of the rest of us when it comes to averting being

victimized by cybercrime, but the tale of former Apple engineer

Rob Ross suggests otherwise. In

October 2018, criminals tapped into Ross’ smartphone remotely and

withdrew $1 million by accessing his bank account via his phone.

Ross experienced one of the newest twists in the cybercrime landscape—a SIM card hack.

The criminals didn’t need to take Ross’ phone or break into its software to perpetrate the crime. Rather, they likely gained information about Ross from other large-scale data hacks, such as those of Yahoo or Equifax accounts, and used it to pose as Ross. By persuading a customer service representative at Ross’ cell phone carrier that his phone was faulty and he needed a new SIM card, the perpetrators ultimately changed Ross’ SIM card number to one that worked with the their phone. That allowed the conspirators to access Ross’ texts and phone services, change his password, lock him out of his phone and Gmail, and use the financial information on his phone to swiftly withdraw money from his financial accounts.

Bittersweet news followed. After Ross reported the theft to California cybercrime experts, one of the alleged perpetrators, Nicholas Truglia, was arrested and is being prosecuted in a California superior court.

However, his accomplices are still at large, and it is unclear whether any of Ross’ money will be recovered. (A more extensive text and video account of the incident is available at www. cybersecurityventures.com/former-appleengineer-is-the-victim-of-a-million-dollarsim-card-hack/.)

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Cybercrime, particularly activities aimed at older adults and seniors, is changing. While many of the precautions necessary to reduce security risks on the internet remain the same, new and evolving threats call for internet users to take additional steps to reduce their risk.

INCREASING RISKS

Cybercrime continues to grow. According to the Identity Theft Resource Center, in 2018, data hackers stole nearly 447 million consumer records containing sensitive personal information. That’s a 126 percent jump from the previous year and a new record for the number of compromised files in a single year.

Seniors are disproportionately affected.

In 2018, the FBI’s Internet Crime Complaint Center (IC3) received complaints from more than 62,000 victims over the age of 60, whose total losses, in excess of $649 million, lead all age groups.

Seniors make appealing targets for cybercriminals for a number of reasons.

They have likely accumulated more funds than younger individuals; may be less technically sophisticated; sometimes face cognitive challenges; and can be isolated, lonely, and more willing to trust strangers.

THE CHANGING LANDSCAPE

Many old internet threats still remain.

Phishing—sending misleading or fraudulent emails or other electronic communications to gain sensitive recipient information (such as credit card accounts); to install malware (software that can access further information or harm computer performance or data); or to direct consumers to fraudulent websites— continues to be among the most common online scams.

But some things have changed. Many cyberattacks have grown more complex and sophisticated, says Erich Kron, a security awareness advocate at Tampa Bay, Floridabased KnowBe4, a cybersecurity awareness training and protection organization.

“There is a lot of information about you from various security breaches—like those of Yahoo, Marriott, and Equifax—for sale on 26

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the dark web that can be used to craft better attacks,” Kron says. “So in the old days, thieves might have broadcast a message to users that Wells Fargo needs you to verify your account. Anyone without a Wells Fargo account would know that was not legitimate, and even those with a Wells Fargo account might be aware that it was a large bank likely to be used in a phishing attack. But now because of the earlier breaches of those big companies, criminals may know you have an account at a small bank in a small town. If you were to receive the same message from that type of institution, you would be much more likely to respond.”

Cybersecurity expert Joseph Steinberg says, many cybercriminals are increasingly targeting small businesses and individuals, rather than corporate giants and government bodies, given the greater likelihood of success and of getting away with such crimes.

Unfortunately, there are limits to what consumer actions can achieve. Many data breaches are facilitated by bribed or participating insiders, which are vastly more difficult to prevent than those of malicious outsiders, notes Steve Morgan, founder of Northport, New York-based cybersecurity research organization Cybersecurity Ventures.

And some dangers reflect insufficient preventative action by third parties with consumer data. “While the hackers are dangerous, the conduct of mobile carriers may be a bigger threat because your mobile telephone number has become a security identifier, and phone companies are not adequately protecting your account,” Ross says.

That makes backing up data, limiting sharing of sensitive information and limiting concentration of sensitive data in one location, all the more important, Morgan notes.

What follows is a description of some of the most frequent internet fraud schemes and what consumers can do to help avert or mitigate them.

SMARTPHONES

Increasingly powerful smartphones may present the single greatest internet

“A smartphone is a pocket computer that is constantly connected to the insecure internet. There needs to be an attitude shift that acknowledges that smartphones are powerful, risky devices.”

security risk to many individuals today.

“A smartphone is no more a ‘smart phone’ than a Ferrari is a ‘fast horse carriage,’ ” says Steinberg. “A smartphone is a pocket computer that is constantly connected to the insecure internet. There needs to be an attitude shift that acknowledges that smartphones are powerful, risky devices.

They are easy to lose, often contain sensitive information, rely on services provided by numerous vendors, frequently connect to insecure Wi-Fi access points, often lack adequate security software, and may be more difficult for seniors to navigate and update due to their small keyboards.”

Here are suggestions for keeping your phone safe: • To protect against SIM-card fraud, use Google Voice or other “virtual private number” services that allow you to use a number that you select—rather than a carrier-assigned telephone number—for communication and authentication.

• Use Apps like Google Authenticator or Authy to create two-factor authentication (to confirm the user’s identity) that is tied to your device instead of to your phone number.

• Make sure your smartphone is password protected, and don’t leave it in an unsecure location.

• Establish a PIN number with your wireless carrier that must be confirmed before engaging with their customer service representatives.

• Only download applications (apps) from major app stores, such as Apple, Google and Amazon.

• Encrypt sensitive data kept on smartphones.

SOCIAL MEDIA

One fraud being perpetrated with more frequency is the creation of phony social media accounts, such as ones on Facebook, LinkedIn, Twitter and Instagram. This scam involves, for example, capturing a user’s photo and data to set up a new Facebook profile W W W. N A R F E . O R G

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that “clones” yours. Friends of the actual user may be asked to friend the fake account, and the fake account can then harvest personal information, direct friends to dangerous websites or send phony messages to friends.

To limit the potential for this type of fraud, Steinberg and others recommend the following: • Choose privacy settings on Facebook and other social media accounts that limit public access to your profile. This should including hiding your friends list and placing most settings on something other than “public.”

• Search for your name on Facebook. If more than one account appears with your photos or bio, your account has likely been cloned.

Report cloned accounts to Facebook.

• Be wary of friend requests from friends who you know you’ve already connected with, from people you don’t know or from those who have profiles that don’t make sense.

• Don’t overshare on social media. “Such information can allow criminals to target you more effectively,” Steinberg says.

“SecureMySocial, of which I am the founder, offers technology that warns people if they are sharing information that may harm them or their employers.”

of intentional corruption of medical data, Steinberg says.

Here are tips for reducing potential harm to your medical data: • Know that while the Health Insurance Portability and Accountability Act of 1996 (HIPAA) provides strong protection for consumers’ health data, users can consent to have their confidential health data shared with anyone they choose, including those not bound by the statute. Once the information is shared outside of HIPAA, however, privacy protections are greatly reduced.

• Read the information disclosure forms from health payers, providers, and third-party applications, (like health monitoring devices and apps) carefully. Pay attention to the default information gathering, storing, and sharing settings—opt out when possible—and what protections require user action.

• Assess whether the service being provided is worth the potential information security risk.

• Get clarity on how medical providers and payers will and will not share medical and payment information with you.

MEDICAL INFORMATION

Health data hacking is another concern.

For seniors, especially, medical devices and services are among their largest expenditures.

Hundreds of thousands of people can be hacked now via their wirelessly connected and digitally monitored implantable medical devices (IMDs)—which include implantable cardioverter defibrillators (ICD), pacemakers, deep brain neurostimulators, insulin pumps, ear tubes, and more, according to Cybersecurity Ventures. Morgan notes that criminals could use such information to target consumers based on preexisting conditions, such as posing as medical providers or payers, selling devices that are fraudulent or blackmailing users by threatening to disclose data. In addition to divulgence of sensitive information, there is the possibility

“One fraud being perpetrated with more frequency is the creation of phony social media accounts.”

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GOOD INTERNET HYGIENE The scams described in this article represent many of the leading emerging threats.

But in addition to the responsive strategies described in the story, all internet security also hinges upon practicing the basics of good internet hygiene, as described below: • Come up with strong passwords or passphrases that are lengthy (at least 12 characters) and that incorporate a combination of letters, numbers, and different characters. Change any default passwords on websites or new devices.

• Put security software, such as antivirus programs and firewalls, on all of your devices, and ensure that the devices are capable of being autowiped, says cybersecurity expert Joseph Steinberg.

• Use multifactor authentication, such as an email password and another independent identifier—for example, a code sent to a cell phone—whenever possible, says Steven Morgan, founder and editor of Cybercrime Magazine. Biometrics enablers, such as fingerprint ID on some smartphones, should be enabled.

• Do not use the same passwords for different websites and apps. If you are having trouble remembering them all consider getting a password vault internet service that uses a single password to gain access to all of your other passwords.

• Do not click on emails that look suspect or that are from organizations, addresses or individuals with whom you have no relationship.

• Go to the main website of an organization when buying products or signing up for

ONLINE DATING

Relationship-based frauds are increasing.

“Dating websites are getting bigger, and older consumers are getting more comfortable using them,” says Patrick Craven, director of the Center for Cyber Safety and Education, a nonprofit charitable trust committed to cyber safety (www.IAmCyberSafe.org). “And many seniors are lonely after the loss of a loved one or are otherwise isolated.” As with social

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•

•

• • •

•

services rather than clicking on links in emails. Look for the “https” prefix at the beginning of a domain name that indicates it is secure.

Pay attention to how key organizations say they will communicate sensitive information with you. The IRS, for example, does not communicate with users by email.

Install all security patches and updates for your phone’s and computer’s operating systems and main software functions, such as the Microsoft Office data processing package.

Regularly back up your computer files onto an external hard drive.

Use secure Wi-Fi for sensitive communications and data.

Report any suspected fraud immediately.

The odds of recovering money and reversing problematic transactions diminishes rapidly after several hours or days.

Fraudsupport.org provides resources to help victims of fraud.

Beware of any email or phone call that demands immediate action. “They are trying to get you riled up and bypass your critical thinking functions,” says cybersecurity awareness advocate Erich Kron. “Slow down and examine whether it makes sense.”

media, some websites allow users to create online profiles with little verification.

Try to avoid dating scams with these suggestions: • Take it slow. Form relationships with strangers over time and consider if there are extraordinary or unlikely elements to the potential partner’s story.

• Be cautious about sending money to or sharing confidential information with someone you’ve interacted with online.

• Ask a good friend, someone more objective about the relationship, whether the relationship makes sense or if something seems off or suspect.

RANSOMWARE

One of the fastest areas of fraud growth is ransomware, in which a fraudster hacks a personal computer, phone or device and threatens to destroy or share the information it contains unless a ransom is paid. On May 7, for example, a ransomware attack paralyzed many aspects of the City of Baltimore’s government IT system after perpetrators hacked it and demanded $100,000 in ransom.

Avoid or reduce the potential damage from ransomware: • Back up key files, devices and information.

• Limit the information stored or used on the most vulnerable devices and applications.

• Encrypt sensitive data or store it on external hard drives, which are more difficult for criminals to access.

THE INTERNET OF THINGS, “FREE” SERVICES, AND TO SHARE OR NOT TO SHARE

The Internet of Things—the extension of internet connectivity into everyday objects like thermostats, security systems, intelligent assistants (like Siri and Alexa) and eldercare applications that allow operation of appliances with voice control and also monitor users for falls—is pushing intelligence and customized consumer preferences. Many of these devices collect a great deal of information about users that would be useful to criminals.

In addition, free things on the internet like sweepstakes and services should be scrutinized. For example, pop-up browser windows simulating virus-scanning software can fool victims into either downloading a fake antivirus program (at a substantial cost) or an actual virus that will open up whatever information is on the user’s computer to scammers, says the National Council on Aging.

Even for legitimate websites, applications and devices, users face increasingly important decisions about how much to share

“While this account of various cybercrimes may seem overwhelming, don’t let it discourage you. Be proactive using the suggestions from this article to protect yourself.” online. “We have known that [Facebook’s] business model for some time has been to monetize information about you based on your preferences, just as Google is gathering information about your preferences every time you perform a free search using their search engine,” Steinberg says, while noting some services may be worth the risks.

Follow these tips to better protect yourself and your data: • Purchase devices and services only from reputable manufacturers, not cheap or free knockoffs that likely feature weak security protections or that are tools for fraud.

• Investigate what information will be collected; how it will be stored; whether it will be shared, and if so, how; and what security settings exist.

• Consider whether the service being provided is worth the risk of data compromise.

While this account of various cybercrimes may seem overwhelming, don’t let it discourage you. Be proactive using the suggestions from this article to protect yourself. That way, you can spend your time online reading the news, watching funny videos and connecting with friends and family—not looking over your shoulder.

—DAVID TOBENKIN IS A FREELANCE WRITER IN THE GREATER WASHINGTON, D.C. AREA. W W W. N A R F E . O R G

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Grassroots Advocacy Month

YOUR STORY

MATTERS

BY DAVID LUSK

W W W. N A R F E . O R G

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Citizen advocates have never played as important a role in federal policymaking as they do currently. An ever-increasing number of organizations—companies, unions, and associations like NARFE—are relying on their members, donors, employees and supporters to not only deliver messages of issue support or opposition to policymakers, but to also take ownership as active participants in public policy efforts. In order for organizations to advance their legislative priorities, members and volunteer advocates must engage with their representatives and build long-term relationships with lawmakers and their staff. While the future of advocacy may be uncertain, one aspect will remain constant: the citizen advocate is and will continue to be an integral part of any interest group’s success in the policy arena.

“ Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.”

—Margaret Mead

As more groups engage Congress via political action committees (PACs) and e-advocacy campaigns, the persuasiveness of these tactics wanes due to the increasing noise. While those activities remain key elements of a successful legislative engagement strategy, it’s necessary for issue groups to use a well-rounded approach that also includes congressional fly-ins and Capitol Hill lobby 34

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days Successful organizations launch advanced advocacy initiatives that energize volunteer advocates to help educate and inform congressional offices about the impact of policy in their communities. If this sounds familiar, it’s because NARFE’s Congressional District Leader (CDL) and Senatorial Leader (SL) programs are an example of an advanced advocacy system. Other organizations are beginning to follow this successful model, making the continued, active engagement of all of NARFE’s members in DC and legislators’ home districts more vital each day.

In addition to its CDL and SL programs, NARFE observes Grassroots Advocacy Month in August because during the long summer recess, legislators return to their home districts.

This represents a great opportunity to start or build upon those long-term relationships with your Senator or Representative because you do not need to travel to Washington, DC to engage in face-to-face citizen advocacy by sharing your powerful personal stories.

ADVOCACY METHODS WANE OVER TIME

Although many interest groups didn’t adopt e-advocacy until the early 2000s, Capitol Hill has experienced an email explosion since then.

The everyday citizen became active in the policy arena in numbers never previously observed.

In 2001, each U.S. House office received an estimated 9,300 emails annually. By 2017, House offices were receiving, on average, a staggering 123,000 messages per office.

Because staffing levels for congressional offices haven’t increased since the 1970s, congressional offices are completely overwhelmed by this e-advocacy deluge.

Point-and-click advocacy with minimal constituent effort is not the persuasive tactic it once was. This is particularly true when constituents are blasting thousands of identical messages written by an organization’s staff without detailing their unique experiences. After all, it’s only fair to consider our own experiences with generic email solicitations. They’re often more of an annoyance than something compelling us to act or make a purchase. How can we expect congressional offices to act on our behalf when perhaps just as many messages arrive in their inboxes from groups opposing

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our position? Email is most effective as an advocacy method when constituents take the time to tailor their messages and share how policy has affected them personally.

Several of my clients have told me about instances when their email campaigns, both widespread and consisting of individualized messages sent to Congress, were mentioned by policymakers as having influenced their decision-making. However, having hundreds or thousands of supporters writing personal messages for an online advocacy campaign tends to be a rare occurrence.

The good news is that the more time and thought a constituent puts into advocacy throughout the year, the more inf luential that person becomes. Today, most interest groups don’t just employ e-advocacy. Their supporters also gather in Washington to meet with lawmakers, either as part of an annual legislative conference or a series of smaller, focused engagement opportunities.

As noted earlier, when more organizations conduct these Washington visits each year (some conducting multiple f ly-ins), the less effective each meeting becomes as a standalone measure. This is one reason NARFE strongly encourages members beyond its CDLs and SLs to attend LEGcon and engage within their districts.

OTHER DEVELOPMENTS AFFECTING ADVOCACY

The 2018 congressional elections exemplified a trend playing out more frequently lately—a change election where party control of the House, Senate or White House switches. When this happens, new chamber leadership is selected in the House or Senate. New chairs and ranking members take over their respective committees, which can lead to the resignation of additional members from the committee, or even from Congress (exacerbating the influx of inexperienced, freshman lawmakers).

Additionally, new department and agency heads may be put in place. In combination, change elections can result in high numbers of inexperienced members in Congress (and their staff) who lack institutional knowledge.

We’ve experienced seven of these change elections in the last nine cycles, which dates back almost 20 years. Ninety House freshmen 36

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and nine new Senators were elected in 2018.

In the 2010 change election, 89 freshmen were elected to the House and 12 to the Senate. That’s two historical change elections in under a decade. The need to repeatedly develop new relationships with freshmen members and party leadership, in such scenarios strains the government affairs offices of even the largest interest groups.

New legislators often hire some inexperienced staffers from their districts who served on their campaigns or supported their candidacy in other ways. According to 2017 research by public policy professor David Rehr, congressional staff tenure was already in decline, from an average of two years about 5-10 years ago to fewer than 18 months since then. That number will likely be even lower for the 116th Congress.

This turnover compounds knowledge and experience gaps among lawmakers and staffers. Therefore, congressional freshman need to hear frequently from constituents to understand the concerns of those living in their home districts. On the upside, constituents building connections with newly-elected legislators will have stronger relationships in the future when the lawmakers eventually take chamber and committee leadership.

A broad, active member engagement program, such as NARFE’s CDLs and SLs initiative (as well as other volunteers who assist association leaders) helps educate and inform congressional offices about priorities back home. It helps foster lasting, beneficial relationships that enable NARFE members to serve as information resources to congressional offices. And, it leads to increasing successes in the policy arena for NARFE.

WHAT YOU CAN DO

In-district engagement opportunities include attending town hall meetings and arranging district office visits. But it’s not enough to walk in the door with a copy of NARFE Magazine and a fact sheet. It’s important to share your story. You’re helping the legislator and his or her staff

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understand how federal policies affect you, their constituent. A week after you attend a meeting or comment at a town hall, there will have been 100 other meetings and comments.

Facts and figures are not going to be what standout in lawmakers’ minds.

Science tells us that storytelling activates a different kind of interaction in the brain; it triggers dopamine and cortical activity that make an individual more likely to remember what is being talked about. Think about good teachers and speakers you’ve encountered in your life: Do you remember the facts they recited to you, or do you remember the interesting story or experience they shared?

Persuasive storytelling is a skill you can hone, but it requires practice. After all, you’re trying to establish a common bond.

Certainly, you want to make it personal.

Look at your fact sheet and examine what issues affect you or a loved one directly.

What are the challenges you face? What are the consequences of a policy change for you?

In addition, research whom you are talking to. Aligning your perspective with the legislator’s will help you figure out the right frame for your story.

“ While there may be methods of engagement yet unimaginable to us today, the value of constituents’ voices will not diminish.”

REVIEW YOUR PITCH WITH AN EYE FOR “THE THREE C’S”:

• Be Clear: State your purpose up front.

“I’m here to talk about this proposed legislation and how it will affect my family.”

• Be Concise: Keep your message succinct.

Write your story down in three or four paragraphs, and practice it ahead of time.

• Have a Charge: What is the action required? Position it as a specific “ask” after telling your story, whether it’s encouraging your representative to vote for a particular bill or to read some information you have provided.

THE FUTURE

While there may be methods of engagement yet unimaginable to us today (as email was just 25 years ago), the value of constituents’ voices will not diminish. The memorable and moving stories shared by citizen advocates, focused on how legislative outcomes impact their lives in the real world, will continue to drive policymaking. Facts and figures can be argued, but when a constituent reveals a real-world anecdote to their member of Congress or their staff, that experience cannot be as easily dismissed. It happened. It was the result of a policy decision, and members of Congress are more willing to take a stance on an issue to help those in their home districts and states.

It’s the voices of the choir, passionate NARFE members with different backgrounds and experiences, coming together to forge and maintain a stronger, combined voice that gets through to lawmakers and fosters change.

You can choose not to participate and not to contribute to the cause. But other organizations are working tirelessly throughout the year. The organizations with the more active and engaged supporters are the ones whose concerns are heard and whose policy priorities enacted. Please do all you can to assure NARFE remains one of them.

DAVID LUSK IS THE FOUNDER OF KEY ADVOCACY, A GRASSROOTS AND ADVANCED ADVOCACY CONSULTING FIRM IN THE WASHINGTON, DC, AREA. HE PRESENTED AT NARFE LEGCON19.

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Managing Money

PLAN FOR CAPITAL GAINS

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ax rules can be tricky and complicated; the rules pertaining to capital gains and losses on investments held outside of a retirement plan are no different. While many

investors focus on a tax loss harvest strategy (selling a security that has experienced a loss) to offset gains, or to take a small deduction, opportunities may exist to minimize taxes in the long run by harvesting gains rather than losses.

A capital gain occurs when a capital asset is sold for more than its cost. The tax rate on a capital gain depends on how long the asset was held before it was sold and the taxpayer’s taxable income. When an asset is held for one year or less, the gain is considered a short-term gain and is taxed as ordinary income at the prevailing tax bracket. In 2019, the tax brackets are 10, 12, 22, 24, 32, 35, and 37 percent.

When the asset is held for longer than one year, the gain is considered a long-term gain, and, depending on the taxpayer’s taxable income, will be subject to a zero, 15 or 20 percent capital gains tax rate.

In 2019, the zero percent capital gains tax rate applies when taxable income is below $39,375 for single filers and $78,750 for joint filers; the 15 percent rate applies when income is between $39,376 and $434,550 for single filers, and $78,751 and $488,850 for joint filers; and the 20 percent capital gains rate applies

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when income exceeds $434,551 for single filers and $488,851 for joint tax filers.

In addition to the capital gains tax, other taxes may apply as well. For example, most states levy taxes on investment income, including capital gains. Furthermore, the net investment income tax kicks in when modified adjusted gross income (MAGI) exceeds $200,000 for single tax filers and $250,000 for joint tax filers. When that happens, investors will owe an additional 3.8 percent on either their net investment income or the amount by which their MAGI exceeds the thresholds, whichever is lower.

Tax on ordinary income is calculated first, so realizing long-term capital gains will not affect the tax rate you pay on your ordinary income. Longterm capital gains, however, are included in taxable income when determining the capital gains tax rate, so as you generate larger amounts of long-term

BY MARK A. KEEN,

CFP®

capital gains, you may push through the income thresholds and trigger a higher capital gains tax rate. The higher rate won’t apply to the entire capital gain, just to the amount that exceeds the threshold.

For example, let’s say a married couple with $50,000 in taxable income sells a stock and realizes a $50,000 long-term capital gain. The zero percent tax rate will apply to the first $28,750, and the 15 percent rate will apply to the remaining $21,250.

While many investors consciously seek to harvest capital losses, few ever think about actively harvesting gains.

Even though it may seem counterintuitive, there are circumstances when selling and realizing a gain will produce a smaller tax liability over time.

Consider the couple in our previous example. They could sell an investment and realize a long-term gain of up to $28,750 while not paying any capital gains tax. They could subsequently repurchase the asset to increase the cost basis to the higher repurchase price.

If the asset were sold again in the future, it would produce a smaller gain—perhaps at a time when capital gains tax would apply.

The progressive nature of capital gains tax makes it important to plan ahead when

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selling an asset to meet a financial goal—especially when realizing the gain in a single year would result in a larger capital gains tax and possible stealth taxes.

For example, let’s imagine our couple needs money next year for a down payment on a vacation home, and the investment they plan on selling for the down payment will generate the $50,000 longterm capital gain. Rather than waiting until next year to sell the investment, they could sell a portion this year, realizing a gain of up to $28,750, and then

sell the remainder next year. That would result in them paying $0 in capital gains tax, a savings of $3,187.50 when compared to selling and realizing the entire gain in a single year.

Capital gains may trigger stealth taxes, such as the 3.8 percent net investment income tax, and taxes on Social Security benefits and Medicare Part B premiums—another reason to be mindful and to think strategically.

The goal for this column is to get investors to plan ahead and to be conscious of the role capital gains play when selling investments. However, there is far more to capital gains and the capital gains tax than what is outlined here. For more information, please read IRS Publications 550, 544 and 523.

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.

National Life Membership Application National Life Membership offers a hedge against future dues increases and affirms a member’s ongoing support of NARFE’s mission to serve federal employees and retirees. National dues are paid for life; applicable chapter dues are billed annually.

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Expiration Date _____ /_______ mm yyyy

Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin. Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes.

Name on Card _____________________________________ Signature _________________________ Date ___________

MAIL THIS APPLICATION TO NARFE Member Services 606 N. Washington St. / Alexandria, VA 22314-1914 W W W. N A R F E . O R G

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41

2019

G FUND

F FUND

C FUND

S FUND

I FUND

JUNE

0.19%

1.26%

7.04%

6.80%

5.94%

MAY

0.21%

1.77%

-6.36%

-6.99%

-4.69%

APRIL

0.21%

0.02%

4.05%

3.69%

2.92%

YTD

1.28%

6.11%

18.53%

19.48%

14.42%

1 YEAR

2.82%

7.96%

10.40%

2.11%

1.53%

3 YEAR*

2.47%

2.48%

14.18%

13.23%

9.52%

5 YEAR*

2.30%

3.22%

10.74%

8.00%

2.62%

10 YEAR*

2.29%

4.14%

14.74%

14.84%

7.24%

2019

L INCOME

L 2020

L 2030

L 2040

L 2050

JUNE

1.57%

2.04%

4.11%

4.87%

5.52%

MAY

-0.98%

-1.42%

-3.36%

-4.06%

-4.67%

APRIL

0.89%

1.16%

2.23%

2.62%

2.96%

YTD

4.70%

6.08%

11.03%

12.96%

14.60%

1 YEAR

4.08%

4.30%

5.52%

5.86%

6.07%

3 YEAR*

4.56%

6.41%

8.87%

9.98%

10.99%

5 YEAR*

3.65%

4.60%

5.98%

6.56%

7.01%

10 YEAR*

4.63%

7.79%

9.54%

10.60%

N/A

*ANNUALIZED

RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP (For additional monthly returns, go to www.tsp.gov.)

G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)

OPM RETIREMENT CLAIMS PROCESSING STATUS

Claims Received

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

2018

MAY 7,625 18,024 58 58 JUNE 9,397 18,198 65 59 JULY 8,281 18,334 57 59 AUGUST 8,826 17,513 56 58 SEPTEMBER 7,142 17,628 64 59 OCTOBER 9,012 19,729 63 63 NOVEMBER 7,510 19,162 61 62 DECEMBER 5,782 18,019 60 61 JANUARY 13,264 23,121 58 60 FEBRUARY 10,792 23,370 58 57 MARCH 10,048 20,201 50 55 APRIL 6,993 17,802 56 55 MAY 7,877 17,228 62 56 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 42

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In an environment of global growth worries, the Federal Reserve expressed an intent to sustain economic expansion, a sentiment interpreted by many observers as a signal of forthcoming interest rate cuts. This expectation fueled investor appetite for stocks, leading to strong gains for the C and S Funds. The I Fund also posted a significant increase, helped by a weaker U.S. dollar. A perceived de-escalation of trade tensions further boosted stocks. Falling interest rates propelled the F Fund to a gain.

All of the L Funds posted positive returns.—BY MICHAEL JERUE, FINANCIAL ANALYST, THRIFT SAVINGS PLAN

*ANNUALIZED

2019

For the Record

POSSIBLE RATE CUTS FUEL JUNE GROWTH

THRIFT SAVINGS PLAN FUND RETURNS

2 019

COUNTDOWN TO COLA

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 0.22 percent in May 2019. To calculate the 2020 cost-ofliving adjustment (COLA), the 2019 third-quarter indices will be averaged and compared with the 2018 third-quarter average of 246.352. The percentage increase determines the COLA. May’s index, 249.871, is up 1.43 percent from the base.

Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W. May’s index is 2.08 percent higher than the December 2018 base index of 244.786.

The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. Included are various government fees, such as water charges, auto registration fees, and sales and excise taxes.

MONTH

CPI-W

Monthly % Change

% Change from 246.352 239.668

OCTOBER 2018 2017

240.573 247.038

-0.15 0.19

0.28 0.38

NOVEMBER

245.933 240.666

-0.45 0.04

-0.17 0.42

DECEMBER

244.786 240.526

-0.47 -0.06

-0.64 0.36

JANUARY 2019 2018

245.133 241.919

0.14 0.58

-0.49 0.94

FEBRUARY

246.218 242.988

0.44

-0.05 1.39

MARCH

247.768 243.463

0.63 0.20

0.57 1.58

APRIL

249.332 244.607

0.63 0.47

1.21 2.06

MAY

249.871 245.770

0.22 0.48

1.43 2.55

JUNE

246.196

0.17

2.72

JULY

246.155

-0.02

2.71

AUGUST

246.336

0.07

2.78

SEPTEMBER

246.565

0.09

2.88

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

$13,151,593.74*

*Total as of May 31, 2019 100 percent of all contributed funds go to Alzheimer’s research.

If you have any questions, write to: NATIONAL COMMITTEE CHAIR Olivia Williams 22 Garden Springs Road Columbia, SC 29209

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

q Mr. q Mrs. q Miss q Ms. Name:____________________________________________________ Address:__________________________________________________ City:______________________________________________________ State:_____________________________________________________ ZIP:______________________________________________________

EMAIL: oeashf3@gmail.com

Chapter Number:___________________________________________

WRITE YOUR CHAPTER NUMBER ON CHECK; MAKE IT PAYABLE TO:

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.

q MasterCard

q VISA

q Discover

q AMEX

Card Number:______________________________________________ Expiration Date:_____(mm)/____ (yy) 3-Digit Security Code:______ Signature:_______________________________ Date:___ /___ /____ Name: (please print)________________________________________

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

q YES!

I would like to help with my contribution.

The NARFE-FEEA Fund supports NARFE members during disasters; provides scholarships to their children, grandchildren and greatgrandchildren; and funds other programs to support NARFE members at the direction of NARFE and FEEA. Enclosed is my NARFE-FEEA Fund Contribution: $______________

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

Name:____________________________________________________ Address:__________________________________________________ City:______________________________________________________ State:_____________________________________________________ ZIP:______________________________________________________ Email:____________________________________________________ To make credit card or e-check contributions, visit www.feea.org/ givenarfe.

NARFE News

NARFE INTRODUCES A NEW BRAND

I

n anticipation of our 2021 centennial, NARFE is proudly introducing a new logo and accompanying brand messaging.

Launched in the 1940s, the NARFE seal served us well but no longer resonated as a symbol for a modern association. NARFE’s new branding honors our past while refreshing and updating our image and ensures we enter our second century strong, relevant and firmly established as the go-to resource for the federal community, policymakers, the media and the public.

NARFE approached this project with great care and consideration.

NARFE partnered with a strategic communication firm specializing in associations. We surveyed members, nonmembers, national and regional officers and staff.

More than a year of thoughtful research, conceptualization and design led to National Executive Board approval in March, and the rollout, as you may have noted in this issue, has begun.

Atop this page, you’ll find our new logo, which includes our tagline: Federal Benefits Experts.

The logo itself maintains a strong sense of patriotism, reflecting our members’ dedication to the country. The tagline, while new, underscores the value NARFE has long provided. Legislators, members and the media count on NARFE as the go-to resource for all things federal benefits.

NARFE’s advocacy staff is an important resource for the Hill as legislation is considered.

NARFE’s Federal Benefits Institute

provides essential information and guidance to current and retired federal employees navigating their complex benefit options.

And NARFE’s communications department relays insights from our in-house experts to the media who report on matters critical to the federal community.

As the national launch of the new NARFE brand begins, chapters and federations will also incorporate the visual elements and messaging. Tools, templates and a branding guide are available at www.narfe.org/narfebrand.

Contact narfebrand@narfe.org for more information. Together, we will broadcast NARFE’s value and excellence to our members, prospective members, legislators, the media and the public at large.

READY … SET … RECRUIT

F

rom September 1 through December 31, 2019, recruiters will earn $10 for each new member they recruit (the recruiter’s ID number must be provided when the new member joins).

Recruiters also will be entered into a monthly drawing (one entry per recruit), with a grand prize at the end of the campaign. Prizes will be announced next month.

As we all work toward the common goals of increasing NARFE

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membership and engaging members in our mission, encourage members at all levels to spread the word and get involved with this important effort.

Please publicize the 2019 Membership Drive in your newsletters, websites and meetings.

Frequent reminders can help keep members focused and excited about the program.

NARFE’s Fall Membership Drive starts September 1. Updated

brochures and materials are available to support recruiting efforts. The NARFE membership brochure, F-135, is available to order.

The brochure can help you through recruitment talking points, and it includes a membership application with a prepaid return envelope.

Complete rules and information can be found online at www.narfe. org/recruit.

— BY MONICA WILLIAMS, DEPUTY DIRECTOR, MEMBERSHIP MARKETING

NARFE MEMBER BENEFITS • Get monthly issues of NARFE Magazine with news and insights for the federal community.

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.

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

• Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits.

• Visit the Member Perks page for a full listing of the many time-, money- and hassle-saving benefits available only to NARFE members.

• 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 $40.

q

q Mr. q Mrs. q Miss q Ms.

q MasterCard

______________________________________________

Full Name

______________________________________________

Street Address

______________________________________________

Apt./Unit

______________________________________________

City

State

ZIP

______________________________________________

Phone

______________________________________________

Email

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

q Active Federal Employee Spouse

q Annuitant Spouse

q VISA

q Discover

q AMEX

___________________________________________ Card No. Expiration Date _____ /________ mm

yyyy

___________________________________________ Name on Card ___________________________________________ Signature ___________________________________________ Date

TOTAL DUES

$40 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.

Or, if known, add Chapter # to join now ________________

Spouse’s Email

THREE EASY WAYS TO JOIN

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.

MAY WE THANK SOMEONE? Did someone introduce you to NARFE? Please provide their Name and Member ID. ___________________________________________ 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 without your express permission.

(0619)

NARFE News

CHARLES LOUIS FALLIS 1927-2019

C

harles Louis Fallis, 91, of Salem, Virginia, passed away on Friday, May 17, 2019. Fallis was both a former national treasurer (1998-2002) and former national president (2002-2006) of NARFE. He was also a past president of the Virginia Federation of Chapters.

He was a member of Chapter 111 in Roanoke Valley, Virginia for nearly 38 years and served as its chapter president in 1992 and 1993.

During his tenure as national treasurer, Fallis streamlined NARFE’s banking system— saving the organization $30,000 annually—and conducted an in-house actuarial valuation of NARFE’s Life Membership Trust Fund—saving NARFE $16,000 in contractual costs. He also halted the long-standing practice of overcharging members who participated in the dues withholding program, and switched NARFE’s auditing firm from a large financial company to a local one—at a savings of $37,000 per year.

In 2002, Fallis ran a national campaign as a candidate for president of NARFE. His platform included championing the NARFE legislative agenda; protecting the Federal Employees Health

Benefit (FEHB) program; bringing NARFE’s membership database in-house; and helping chapters provide better programs and services. He was elected president

FALLIS IN 2004

at the 2002 National Convention in Greensboro, North Carolina.

Born in 1927 and raised on a farm near Harrodsburg, Kentucky, Fallis helped work the farm until age 17, when he enlisted in the Navy during World War II. When the war ended, Fallis attended the University of Kentucky under the GI bill. A Navy reservist, he was later called to serve during the Korean War. Fallis’ two periods of military service began his long and distinguished 35-year government career in a variety of positions:

railway mail clerk; postal inspector (in his 13 years in federal law enforcement as a postal inspector, he held the inspection service’s Washington, DC arrest record); officer-in-charge (postmaster), Washington, DC; and regional assistant postmaster general.

Fallis’ final public appearance on behalf of NARFE was in 2017.

As the keynote speaker at the Chapter 111 65th anniversary luncheon, he regaled chapter members with stories from his days as a railway clerk and postal inspector. He spoke lovingly of his late wife, Betty, his inspiration and his partner in life. He continued to attend Chapter 111 meetings through 2018.

Fallis was preceded in death by his parents, two brothers, one sister, and his wife, Betty Marie Sizemore Fallis, who died in 2015. He is survived by his son, Steven; his daughters, Jane, Beth and Susan; his brothers, Ray and Norman; and his sister, Ruth.

A memorial service for both Charles and Betty was held on Saturday, June 22, at Ransdell’s Funeral Chapel, 345 East Lexington Street, Harrodsburg, Kentucky.

—SUBMITTED BY THE NARFE CHAPTER 111 ROANOKE VALLEY BOARD OF DIRECTORS

NARFE WELCOMES NEW HR MANAGER

S

hela’e Herman recently joined NARFE as its new Human Resources (HR) Manager. She holds a bachelor’s degree from Bennett College and a master’s degree in human resource management from Trinity Washington University.

Shela’e has worked in association HR positions for a number of years and brings abundant knowledge and

46

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experience to the position. Before coming to NARFE, Shela’e was the HR manager at the Council of Better Business Bureaus. She also worked at Paralyzed Veterans of America.

In her position, Shela’e will be responsible for managing all human resource functions for NARFE staff.

Please join us in welcoming her to our organization.

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Years of work by innovative engineers have resulted in a mobility device that’s truly unique. They created a battery that provides powerful energy at a fraction of the weight of most batteries. The Zinger features two steering levers, one on either side of the seat. The user pushes both levers down to go forward, pulls them both up to brake, and pushes one while pulling the other to turn to either side. This enables

great mobility, the ability to turn on a dime and to pull right up to tables or desks. The controls are right on the steering lever so it’s simple to operate and its exclusive footrest swings out of the way when you stand up or sit down. With its rugged yet lightweight aluminum frame, the Zinger is sturdy and durable yet convenient and comfortable! What’s more, it easily folds up for storage in a car seat or trunk– you can even gate-check it at the airport like a stroller.

Think about it, you can take your Zinger almost anywhere, so you don’t have to let mobility issues rule your life. It folds in seconds without tools and is safe and reliable. It holds up to 275 pounds, and it goes up to 6 mph and operates for up to 8 hours on a single charge.

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More and more Americans are reaching the age where mobility is an everyday concern. Whether from an injury or from the aches and pains that come from getting older– getting around isn’t as easy as it used to be. You may have tried a power chair or a scooter. The Zinger is NOT a power chair or a scooter! The Zinger is quick and nimble, yet it is not prone to tipping like many scooters. Best of all, it weighs only 47.2 pounds and folds and unfolds with ease. You can take it almost anywhere, providing you with independence and freedom.

2019 BYLAW T

he NARFE Standing Bylaws and Resolutions Committee (BRC) has the responsibility of assessing and making recommendations regarding proposed bylaws and standing rules amendments for placement on a ballot for a vote by

the membership. The Committee may also submit proposed amendments in addition to assessing those of other entities.

The BRC was tasked to consider possible bylaws and standing rules amendments for a referendum vote in 2019 in order to improve the election process of national officers; regional vice presidents; and proposed bylaws and standing rule amendments in 2020.

The BRC met online and in person from January through March 2019 and, supported by the NARFE parliamentarian, developed eight bylaws amendments. It was decided to reformat the national bylaws, clarify wording, and revise the voting process when three or more candidates seek the same office.

The BRC proposed the following bylaws and standing rules amendments to the National Executive Board (NEB) and, in accordance with Article IX, Section 1 of the 2018 bylaws, they approved a vote in 2019 by membership referendum. (See box on page 49.)

The full text of all bylaws and standing rules amendments is available on NARFE’s website; a printed copy can also be requested from the national headquarters. Voting will be conducted during September 2019 via the paper ballot published in the September issue of NARFE Magazine and through online voting that same month.

This year, the ballot will ask members to vote on each bylaws and standing rules amendment individually. Members may choose to not vote on a particular amendment without penalty. The option to “accept all” or “reject all” amendments that was available in 2018 will not be offered, nor will the BRC make a recommendation to adopt or reject an amendment.

Please take the time to study the issues; discuss them with other members in your chapter or federation; and cast your vote online or by paper ballot. Voting is one of the most important privileges you have as a NARFE member.

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REFERENDUM THE BRC PROPOSED THE FOLLOWING BYLAWS AND STANDING RULES AMENDMENTS TO THE NEB: 19-01: Reformat of the 2018 bylaws to reorganize and streamline the bylaws language to make them easier to understand.

19-02: A companion amendment with 19-01 to reformat the 2018 standing rules accompanying the bylaws.

19-03: Replaces the term “convention” with “conference” throughout the bylaws and rules to reflect the implementation of the One Member, One Vote bylaws amendment passed at the 2016 national convention, which eliminated the need for a convention to conduct voting.

19-04: Replaces the term “national” members with “national-only” members to clarify that (1) there are members that do not belong to a NARFE chapter, and (2) there are members that do belong to a NARFE chapter and pay requisite chapter dues. Previously, non-chapter members have been referred to as national members, national-only members, or national division members.

19-05: Provides that if there are three or more candidates for a national or regional office, voters shall indicate their order preference for each candidate by voting first, second, third, etc. for each candidate on the ballot (also called preferential voting). Since it is unlikely that any candidate will receive a majority of the vote when there are three or more candidates for office, preferential voting will determine the overall favorite candidate of the electorate to be the winner of the election on the first ballot. Preferential voting is the recommended method of ballot voting by Roberts Rules of Order Newly Revised when there are three or more candidates for office.

The alternative is to incur additional costs by holding multiple elections until one candidate achieves a majority vote, resulting in substantially longer times to conduct national elections.

This bylaws amendment is the most urgent of the proposed bylaws and rules amendments.

If there are three or more candidates for national or regional office in 2020, NARFE does not want to repeat the 2018 situation in which two elections were required to determine a national president. This amendment would prevent that occurrence from happening again.

19-06: Separates “Voting” and “Committees” in the current 2018 bylaws Article VI. These two unrelated issues were erroneously combined as a result of the One Member, One Vote bylaws amendment passed at the 2016 national convention. This amendment separates the two topics and also eliminates the term “super majority,” which does not appear in Roberts Rules of Order. It retains the language of a 2/3 vote necessary for the approval of changes in compensation for the national officers and RVPs, and changes in national dues.

19-07: Removes the term “resolution” from Rule VII, Section 1. Standing Rules Amendments.

Standing rules shall be amended in the same manner as amendments to the bylaws.

19-08: Clarifies that dues for supporting members shall be established by the NEB and, if applicable, by the chapter.

W W W. N A R F E . O R G

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49

Member Perks Perks Member

SAVE MONEY WITH NARFE PERKS NARFE appreciates your service, and so do businesses across the country.

Whether you are planning your next vacation or planning for retirement, members can save money on everyday purchases, thanks to our Affinity Partners. It’s just one more way we’re able to say “thank you” for being a NARFE member.

PUT YOUR NARFE MEMBERSHIP TO WORK Money-saving discounts that benefit you.

For a complete list of Member Perks, visit www.NARFE.org/memberperks or call 571-483-1292.

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INSURANCE: NARFE Insurance Services 1-800-233-5764 www.narfeinsurance.com

Plans administered by Mercer Health offering life, short term recovery, pet, travel, vision and hospital insurance policies.

Nationwide

1-855-550-9216

Discover how Nationwide’s suite of insurance solutions can help protect your financial future.

TRAVEL: Choice Hotels International 1-800-258-2847 www.choicehotels.com

Receive 20% off of your next stay when you use the special rate id 00801967.

Alamo 1-800-462-5266

www.alamo.com

Drive Happy with Alamo, where NARFE members receive year-round discounts using contract id 262544.

Avis 1-800-633-3469 www.avis.com

Avis has 5,500 locations worldwide.

Get discounted rate using the AWD number A701900.

MemberDeals 1-877-579-1201

www.memberdeals.com/narfe

Exclusive discounts on nationwide attractions and entertainment.

WELLNESS: Brookdale Senior Living 813-440-8415 www.brookdale.com

Discounts on memory care, independent and assisted living communities, and more throughout the U.S. Offer good on new move-ins only.

Lifeline

R

1-800-324-9906 www.lifelinescreening.com/narfe Call and mention code BKHN075 or go online to schedule your health screening appointment.

PERSONAL SERVICES: Allied Van Lines – Coleman Worldwide 800-239-4099, ext. 99445 nicole.wood@colemanallied.com Discounted moving services across the United States.

Office Depot/Office Max

1-855-337-6811, ext. 2897 www.officediscounts.org/narfe

Save up to 80% on more than 93,000 products. Shop online or in any Office Depot or Office Max Store.

ID Shield 571-830-5489

www.legalshield.com/info/narfe

Monitor your identity from every angle.

NARFE Members receive a discounted rate of $8.95 for individuals or $18.95 for families.

W W W. N A R F E . O R G

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51

The Way We Worked

WORKING IN THE U.S. DISTRICT COURTHOUSE This photograph from around 1972 shows the judges of the U.S. District Court for the District of Maryland with U.S. Court of Appeals Judge for the Fourth Circuit Simon E. Sobeloff. Inside the Baltimore U.S. District Courthouse, the judges are seated at a conference table with their law clerks standing behind them. Federal judges resolve matters brought before the United States federal courts, and how they do it has changed significantly. In the 1970s, law clerks and judges conducted legal research from printed volumes of text and used longhand to craft briefs and opinions, which were then typed up by secretaries.

Today, judges and law clerks use many digital resources for research, and they communicate via methods like video conference, teleconference and email.

PHOTO from the Records of the U.S. Court of Appeals, Fourth Circuit Library, 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.

52

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DID YOU KNOW? The Federal Judiciary Act of 1789 established the United States District Court for the District of Maryland. The district court convened for the first time in 1790, alternating sessions between Easton and Baltimore until 1822.

Currently, the district court of Maryland is composed of two divisions, north and south, located in Baltimore and Greenbelt, respectively. Court hearings are also held in in Salisbury and in other government installations, such as Andrews Air Force Base and Aberdeen Proving Ground.

Visit www.uscourts.gov.

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10643 Glenoaks Blvd. Pacoima, CA 91331 VersoShock® U.S Patent #US8,555,526 B2. May be eligible for Medicare reimbursement. This product is not intended to treat, cure or prevent any disease. $30 off applies to orders of $100 or more for a limited time. Cannot be combined with other offers. 9% CA sales tax applies to orders in California. Shoes must be returned within 30 days in like-new condition for full refund or exchange. Credit card authorization required. See website for complete details.

Your life is active.

Your life is Your life is active. active.

You deserve You You deserve deserve hearing aids that hearing aids hearing aids that that can keep up. can keep can keep up. up.

Pay nothing on over 250 hearing aid styles!

Pay nothing on over 250 hearing aid Pay nothing on over 250 hearing aid styles! styles!

Access all the newest & best technology at HearUSA. Access all the newest & best technology at Access all the newest & best technology at HearUSA. HearUSA. HearUSA offers more than 250 styles of hearing aids HearUSA offers more than 250 styles of hearing aids HearUSA offers more than 250 styles of hearing from every major manufacturer, available withaids no from every major manufacturer, available with no from every major manufacturer, available with no out-of-pocket expense for NARFE members with Aetna, out-of-pocket expense for NARFE members with Aetna, out-of-pocket expense NARFE members Aetna, Blue Cross Blue Shieldforand GEHA health with insurance.

Blue Cross Blue Shield and GEHA health insurance.

Blue Crossmembers Blue Shield and GEHA insurance.

All NARFE are entitled to thehealth HearUSA Affinity All NARFE members are entitled to the HearUSA Affinity All NARFE members are entitled to the HearUSA Affinity Partner Discount Program!

Partner Discount Program!

Partner Discount Program!

With more than 30 years in hearing care, HearUSA has With more than 30 years in hearing care, HearUSA has With more than 301years in people hearingexperience care, HearUSA has helped more than million a better helped more than 1 million people experience a better helped more than 1 million quality of life through better people hearing.experience a better quality of life through better hearing. quality of life through better hearing.

NARFE Member Exclusive NARFE NARFE Member Member Exclusive Exclusive • NARFE members may be entitled • NARFE members may be entitled * • NARFE members may be entitled to 2 FREE hearing aids! to 2 FREE hearing aids!** to 2co-pay FREE hearing • $0 for manyaids! plans!

• $0 co-pay for many plans!

•• $0 co-pay60-Day for many plans!

Risk-Free Trial • Risk-Free 60-Day Trial •• Risk-Free 60-Day Trialbatteries Free 3-year warranty, • Free 3-year warranty, batteries • Free 3-year warranty, batteries & follow-up care & follow-up care & follow-up care

Schedule your FREE hearing appointment: Schedule Schedule your your FREE FREE hearing hearing appointment: appointment:

1-855-252-0025 1-855-252-0025 1-855-252-0025

HearUSA is the exclusive Affinity Hearing Care Partner for NARFE members.

HearUSA is the exclusive Affinity Hearing Care Partner for NARFE members.

The hearing aidsHearUSA NARFE members want withAffinity the outstanding service HearUSA is known for every step of the way. is the exclusive Hearing Care Partner for NARFE members.

The hearing aids NARFE members want with the outstanding service HearUSA is known for every step of the way.

The hearing aids NARFE members want with the outstanding service HearUSA is known for every step of the way.

*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. *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. *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.