August 2022 NARFE Magazine by NARFE

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

August 2022 VOLUME 98 ★ NUMBER 6

NARFE Members Step Up Advocacy Efforts in August

36 Inspectors General: Insight Into Program Oversight

NEW WITH SOUND ADJUST

HEAR LIFE TO THE FULLEST Bring your world to life with Eargo 6, our smallest, most comfortable, virtually invisible

device, putting complete hearing personalization at your fingertips. With our powerful mobile app, it delivers incredibly rich, clear audio addressing your unique hearing preferences. Eargo 6 makes hearing so easy, you might just forget you have hearing loss.

Virtually inivisible hearing aids Sound Adjust automatically adjusts to every listening environment Water resistant to one meter underwater Telecare you can trust with over 40 licensed hearing professionals on call

That’s the Eargo Difference

Visit eargo.com to learn more.

Contents AUGUST 2022

COVER STORY PAGE 28

FEATURE PAGE 36

NARFE MEMBERS STEP UP ADVOCACY EFFORTS IN AUGUST Recess, when members of Congress head back to their districts, is a great time to communicate NARFE’s legislative priorities. INSPECTORS GENERAL: INSIGHT INTO PROGRAM OVERSIGHT Find out what IGs do, how they do it and what you should do when the IG’s office calls.

Special Features

8 NARFE 2022 Election 51 NARFE 2021 Financial Statements

Columns

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

4 From the President

August 2022 VOLUME 98 ★ NUMBER 6

26 Benefits Brief 42 Managing Money

NARFE Members Step Up Advocacy Efforts in August

Washington Watch

12 NARFE Urges Appropriations Subcommittees to Seek Answers From OPM Retirement Services

13 President Proposes 4.6

Percent Federal Employee Pay Raise for 2023

13 Senate Introduces Equal COLA Act

14 Legislative Roundup 15 OPM Releases Results of 2021 Federal Employee Survey

17 Bill Tracker

Departments 36

6 NARFE Online 22 Questions & Answers

Inspectors General: Insight Into Program Oversight

ON THE COVER Illustration by TGD

23 Countdown to COLA 40 NARFE News 46 NARFE Perks 62 The Way We Worked

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

NARFE MAGAZINE www.NARFE.org

AUGUST 2022 VOLUME 98 ★ NUMBER 6

REGIONAL VICE PRESIDENTS

EDITORIAL DIRECTOR Jenn Rafael

REGION I James C. Risner

SENIOR EDITOR Mabel Yu CREATIVE SERVICES MANAGER Beth Bedard ADDITIONAL GRAPHIC DESIGN TGD EXECUTIVE EDITOR Helen Mosher EDITORIAL BOARD Kenneth J. Thomas, Kathryn E. Hensley, Johann De Castro CONTACT US NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Editorial: communications@narfe.org Advertising Sales: Anita Nelson advertising@narfe.org

NARFE FOR THE VISUALLY IMPAIRED ON THE TELEPHONE: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFBNEWSLINE® service at 866-504-7300 or go to www.nfbnewsline.org. ON DIGITAL AUDIO: Issues of NARFE Magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider. The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

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

INTERIM EXECUTIVE DIRECTOR JOHANN DE CASTRO jdecastro@narfe.org

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

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

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

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

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

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:

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

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

REGION VIII Robert H. Ruskamp

TO REACH A FEDERAL BENEFITS SPECIALIST:

REGION IX Linda L. Silverio

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

(California, Hawaii, Nevada and Republic of Philippines) Tel: 703-628-3234 Email: rvp8@narfe.org (Alaska, Idaho, Montana, Oregon and Washington) Tel: 503-391-2963 Email: l.l.silverio.narfe@gmail.com

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

NARFE Magazine (ISSN 1948-4453) is published monthly except in February and July by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $48. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2022, 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.

NARFE MAGAZINE AUGUST 2022

/gehahealth

/company/gehahealth

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

The Way Forward

am excited about what NARFE has accomplished as an association thus far, setting the stage for our next 100 years.

We have launched a new website and a new online community (FEDHub). We have had key advocacy wins in postal reform and employee benefits legislation. Instead of focusing on policies that were not politically viable, NARFE drafted compromise language that everyone could get on board with—and that was the language signed into law. This underscores NARFE’s strength as a nonpartisan organization that both chambers of Congress and the administration can count on to help them reach the finish line with important pieces of legislation. NARFE has provided testimony before congressional committees, participated in meetings with government agencies, administration officials and coalition partners, and stood beside you in town hall meetings. NARFE remains the go-to resource for the federal community among the media and policymakers. And you know we will continue to advocate for federal pay increases and full COLAs for FERS retirees, support efforts to reform or repeal the GPO and WEP, and provide substantive feedback on efforts to modernize the civil service. None of this would be possible without your involvement in NARFE. Members drive what we do and are the engine behind every ounce of progress.

NARFE MAGAZINE AUGUST 2022

So, thank you for being an active part of our association and supporting our continued efforts to increase awareness of the value and contributions of federal employees and retirees. While I am proud of our accomplishments, we have more to do to remain the federal benefits experts. Coming up is NARFE’s premier training conference, FEDcon22, August 21-23 in Scottsdale, AZ. FEDcon22 will have top-notch advocacy training, federal benefits information, and a leadership development track to help grow membership, increase member engagement at all levels of the association and dive into the practice of succession planning. Taking cues from ongoing popular content in NARFE Magazine and FEDHub, we have created a stellar lineup of content and speakers to ensure you get a lot of bang for your buck. Potential new leadership will help steer the path for our association. This is an election year for NARFE, and ballots are included in this issue. To read candidate statements and get more information, go to www.narfe.org/2022election. Remember to exercise your right to vote for the candidates that can best represent us. I wish you all good health, and please stay safe.

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

The Invention of the Year The world’s lightest and most portable mobility device

Once in a lifetime, a product comes along that truly moves people. Introducing the future of battery-powered personal transportation . . . The Zinger. Throughout the ages, there have been many important advances in mobility. Canes, walkers, rollators, and scooters were created to help people with mobility issues get around and retain their independence. Lately, however, there haven’t been any new improvements to these existing products or developments in this field. Until now. Recently, an innovative design engineer who’s developed one of the world’s most popular products created a completely new breakthrough . . . a personal electric vehicle. It’s called the Zinger, and there is nothing out there quite like it.

“What my wife especially loves is it gives her back feelings of safety and independence which has given a real boost to her confidence and happiness! Thank You!” –Kent C., California

The first thing you’ll notice about the Zinger is its unique look. It doesn’t look like a scooter. Its sleek, lightweight yet durable frame is made with aircraft grade aluminum so it weighs only 47.2 lbs. It features one-touch folding and unfolding – when folded it can be wheeled around like a suitcase and fits easily into a backseat or trunk. Then, there are the steering levers. They enable the Zinger to move forward, backward, turn

Now available in a Joystick model

Available in Green, Black and Blue (shown) 10”

on a dime and even pull right up to a table or The Zinger folds to a mere 10 inches. desk. With its compact yet powerful motor it can go up to 6 miles an hour and its rechargeable battery can go up to 8 miles on a single charge. With its low center of gravity and inflatable tires it can handle rugged terrain and is virtually tip-proof. Think about it, you can take your Zinger almost anywhere, so you don’t have to let mobility issues rule your life. Why take our word for it? Call now, and find out how you can get a Zinger of your very own.

(Zoomer Chair)

Call now and receive a utility basket absolutely FREE with your order.

Joystick can be mounted on the right or left side for rider’s comfort

Please mention code 117280 when ordering.

enjoying life never gets old™

The Zinger and Zoomer Chairs are personal electric vehicles and are not medical devices nor wheelchairs. They are not intended for medical purposes to provide mobility to persons restricted to a sitting position. They are not covered by Medicare nor Medicaid. © 2022 Journey Health and Lifestyle

ACCREDITED BUSINESS A+

85246

mobility | sleep | comfort | safety

1-888-643-4048

NARFE Online

SAVE MONEY WITH NARFE PERKS WHETHER you are planning your next vacation or move, buying a gift or planning for retirement, members can save money on everyday purchases with special discounts from our Affinity Partners. Visit www.narfe.org/perks or see p. 62.

Stay Informed About News That Matters to You

ant to stay on top of key federal news and benefits information? Subscribe to NARFE Daily News Clips.

This newsletter features breaking news and informative articles from various outlets curated just for NARFE members, as well as NARFE media

statements, op-eds and more. NARFE Daily News Clips is delivered to inboxes weekday mornings. To join the mailing list, visit www.narfe.org/clips.

TSP UPDATE ONLINE

Get the most recent monthly and annual Thrift Savings Plan returns (G, F, C, S, I and L Funds) online at www. narfe.org/tsp-funds.

READ NARFE MAGAZINE ONLINE

MISS A WEBINAR?

Catch up on past NARFE Federal Benefits Institute presentations in NARFE’s webinar archive, where you’ll find videos, slides and transcripts of question-and-answer sessions for webinars dating back to January 2019. View them at www.narfe. org/webinar-archive.

CONNECT ON FEDHUB If you haven’t checked out NARFE’s new online community yet, what are you waiting for? NARFE designed FEDHub to support your federal journey, leveraging the knowledge and value of our entire community—all that’s missing is you. Join the conversation at fedhub.narfe.org/ quick-start-guide.

NARFE MAGAZINE AUGUST 2022

NARFE’s website now offers a digital flipbook of this and previous issues at www.narfe. org/magazine-issues. You can read the magazine online on your computer, phone or tablet, or download it to peruse later.

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

June/July 2022 VOLUME 98 ★ NUMBER 5

Juneteenth and the Establishment of Federal Holidays

36 Under the Radar: Lesser-Known Government Ventures

An exclusive exclusive hearing hearing benefit benefit An An exclusive hearing benefit for NARFE NARFE members members and and for for NARFE members and their families families their their families Up to 48% off on hearing aids for you Up 48%family off on hearing aids for you andto Up toyour 48% off on hearing aids for you and your family and yourlatest familytechnology, including Today’s Today’s latest technology, rechargeable aids including Today’s latesthearing technology, including rechargeable hearing aids rechargeable hearing Risk-free 60-day trial aids Risk-free 60-day trial Risk-free 60-day trial ...and more! ...and more! ...and more!

To get more information, To To get get more more information, information, call us at (888) 847-6150 or visit call call us us at at (888) (888) 847-6150 847-6150 or or visit visit

fed.starthearing.com/NARFE fed.starthearing.com/NARFE fed.starthearing.com/NARFE

With a qualified health insurance plan, you may be eligible for a hearing aid allowance. With a qualified health insurance plan, you may be eligible for a hearing aid allowance. * With a qualified insurance plan, you may be eligible for a SoundGear hearing aid allowance. This could meanhealth $0 cost for your hearing aids, including Phantom!

* This $0 cost for your hearing aids, including SoundGear Phantom! * *Your current health plan may or may not include a hearing aid allowance. Please contact Start Hearing to find out more. This could could mean mean $0 cost for your hearing aids, including SoundGear Phantom! *Your current health plan may or may not include a hearing aid allowance. Please contact Start Hearing to find out more. *Your current health plan may or may not include a hearing aid allowance. Please contact Start Hearing to find out more. *Your current health plan may or may not include a hearing aid allowance. Please contact Start Hearing to find out more.

The world’s first custom, Bluetooth®® compatible and The world’s custom, ® compatible and rechargeable hearing aid Bluetooth and protection device.and The world’s first first custom, Bluetooth compatible rechargeable hearing aid and protection device. rechargeable hearing aid and protection device.

Bluetooth Bluetooth Stream calls, music or Bluetooth other audio wirelessly Stream calls, music or Stream calls, music or from your phone. other audio wirelessly other audio wirelessly from your phone. from your phone.

Rechargeable Rechargeable One, overnight charge Rechargeable ensures they’re

One, overnight charge One, overnight powered all daycharge long. ensures they’re ensures poweredthey’re all day long. powered all day long.

Hearing Protection Hearing Automatic Protection protection Hearing Protection from loud sounds and Automatic protection Automatic protection gun shots. from loud sounds and from loud sounds and gun shots. gun shots.

Hearing Enhancement Hearing Enhancement Hear conversations, game Hearing Enhancement and environmental sounds Hear conversations, game Hear conversations,sounds game withenvironmental ease. and and sounds withenvironmental ease. with ease.

Custom Fit Custom Fit to your Cutom-molded Custom Fit ear for a comfortable, Cutom-molded to your Cutom-molded personalized fit.to your ear for a comfortable, ear for a comfortable, personalized fit. personalized fit.

Visit SoundGear.com or call (888) 847-6150 to schedule a Visit SoundGear.com (888) 847-6150 schedule Visit SoundGear.com or call (888) 847-6150 to tonear schedule a custom fitting withor a call hearing professional you! a custom fitting with a hearing professional near you! custom fitting with a hearing professional near you!

©2022 Starkey Laboratories, Inc. All Rights Reserved. 4/22 TJAD3207-00-EE-SH SoundGear and Phantom are registered trademarks of Starkey Laboratories, Inc. Start Hearing and Start Hearing logo are trademarks of Starkey Laboratories, Inc. The Bluetooth® word mark and logo are registered trademarks owned by Bluetooth SIG, Inc. and any use of such marks by Starkey is under license. ©2022 Starkey Laboratories, Inc. All Rights Reserved. 4/22 TJAD3207-00-EE-SH SoundGear and Phantom are registered trademarks of Starkey Laboratories, Inc. Start Hearing and Start Hearing logo ©2022 Starkey Laboratories, Inc.Laboratories, All Rights Reserved. 4/22 TJAD3207-00-EE-SH SoundGear and Phantom are registered trademarks ofInc. Starkey Laboratories, StartbyHearing Startlicense. Hearing logo are trademarks of Starkey Inc. The Bluetooth® word mark and logo are registered trademarks owned by Bluetooth SIG, and any use of suchInc. marks Starkeyand is under are trademarks of Starkey Laboratories, Inc. The Bluetooth® word mark and logo are registered trademarks owned by Bluetooth SIG, Inc. and any use of such marks by Starkey is under license.

VOTING INSTRUCTIONS

lease carefully review all of the instructions prior to completing your ballot. You are eligible to vote in the election if you are a NARFE member in good standing as of June 15, 2022. You may cast your vote either online OR by mail. Once your

member ID and personal identification number are used on any ballot, they will not be valid for additional ballots. Please take time to vote today. Thank you for participating in NARFE’s election process.

REVIEW THE BALLOT CAREFULLY Preferential Voting Applies to the National President and Region II Vice President Election Article IV, Section 1.C., of the NARFE Bylaws states: “Election shall be by a majority of ballots cast except that when there are three or more candidates for the same office or position, voters shall indicate their preference in order for each candidate.” Preferential, or ranked choice, voting will apply in two races. Four candidates are running for national president, and for Region II members, three candidates are running for RVP in your region. In preferential voting, it is very important that you mark your candidates in order of first choice, second choice, third choice, and so on. Preferential voting is tallied by first taking into account all first-choice votes. If one candidate receives a majority in this tally, he will be declared elected. If there is no majority of first-choice votes, the choices will be calculated according to the table below: Candidate rank National President Region II RVP (your vote): 1st Receives 4 points Receives 3 points 2nd Receives 3 points Receives 2 points 3rd Receives 2 points Receives 1 points 4th Receives 1 points —

This method is called the Borda count, and is often referred to as the consensus method because the candidate with the most following generally emerges as the winner. The preference for second choice becomes just as important as the preference first choice in determining the true outcome of the election. If your ballot does not have all preferences marked, it will only be counted for the first tally to determine a majority vote. Ballots that do not contain a mark for each candidate expressing a preference

NEED ASSISTANCE? For voting assistance, please call 1-866-720-4357 Monday – Friday between 9 a.m.-5 p.m. ET, or email narfehelp@electionservicescorp.com will not be counted for any preference on the second tally Borda count, if needed. Therefore, members are strongly encouraged to mark all choices on their ballots to ensure their full voices are heard and counted. Candidates for national or regional office where preferential voting is not in effect: Vote for one candidate for each national office. Vote for the regional vice president (RVP) candidate in your region only. Please note your region number at the top of the ballot. Do not vote for an RVP if your region is not listed on the ballot. For information about the candidates, visit www.narfe.org/2022Election. Bylaws proposals: For information on the bylaws proposals, please see p. 10 of this issue. For additional details, visit www.narfe.org/2022Election and choose “Bylaws and Standing Rules Amendment Proposals” for the proposals to amend NARFE bylaws (ballot items as well as all submissions), content of proposals acted on by the committee, and 2022 Bylaws Committee rationale. Vote individually on items to adopt or reject each item. Ballots that are not correctly completed will be invalidated.

VOTE BY MAIL • Place a Q or R or darken the box to indicate your choices. Use dark blue or black ink. • Do not write your name or otherwise identify yourself on the ballot. • Tear or cut this ballot along the perforated line to

Ballots must be received at Election Services Co. by 11:59 p.m. ET on August 31, 2022

NARFE MAGAZINE AUGUST 2022

VOTING INSTRUCTIONS

detach. Place the ballot in an envelope and mail to: NARFE Ballot Processing c/o Election Services Co. PO Box 9020 Ronkonkoma, NY 11779-9020 • Ballots must be received at Election Services Co. by 11:59 p.m. ET on August 31, 2022. Please mail your ballot at least 10 days before the deadline to allow sufficient time for delivery. Ballots received after the deadline will be discarded. • Do NOT mail ballots to NARFE National Headquarters. Ballots received at NARFE will be disqualified. • If you do not have a ballot in this issue and expected to get one, please call 1-866-720-4357 for assistance.

VOTE ONLINE • Please go to https://vote.escvote.com/narfe to log in and vote. • You must have your member ID number and your unique PIN to log in. These numbers can be found at the top of the printed ballot. These numbers will serve as your unique identifier for voting. Please do not share them with others. • For ease of voting online, Election Services Co. will email members who have an email on file with NARFE. Members can click on the link in the email to go to the voting website and cast a vote using the member ID number and unique PIN number included in the email to log in. • Once you are logged in, follow the online voting instructions. • On the online ballot, members will see only those candidates for whom they may cast a vote. • Online voting begins July 15, 2022, and ends at 11:59 p.m. ET on August 31, 2022.

Go Beyond Square Footage Grow your square footage beyond the walls of your home with the Army Residence Community’s three dining rooms, superb sky lounge, various card / activity rooms and so much more. Then you’ll have extra savings and an open-floor plan home with modern upgrades to make your own! And right now, you can take advantage of significant savings through the Army Residence Community Charter Club.

Call us at 1-800-810-7163 or visit armyresidence.com to arrange a tour or take advantage of serious savings.

The ARC welcomes all officers, retired or honorably discharged from all branches of service, warrant officers, as well as senior level GS 14 and above federal employees, who are at least 62 years old, to include spouses and surviving spouses.

7400 Crestway | San Antonio, Texas 78239 NARFE MAGAZINE www.NARFE.org

BYLAWS COMMITTEE REPORT 2022 BYLAWS AMENDMENTS RECOMMENDED FOR ADOPTION NUMBER

SUBJECT

EFFECT

RECOMMENDATION

B-22-01

Electronic Meetings

Provides for electronic meetings in the bylaws

ADOPT

B-22-02

RVP Vacancies

Clarifies that any qualified member in the region may be elected RVP

ADOPT

B-22-10

Compensation Committee

Creates an independent committee appointed by the National President to review and recommend changes to National Officer and RVP compensation

ADOPT

B-22-24

Ballot After National Conference

Provides that voting for national and regional officers and bylaws amendments will take place after the national conference

ADOPT

BC-22-01

Electronic Voting

Provides for electronic voting in the bylaws

ADOPT

BC-22-02

Amendments to Bylaws

Reduces the number of members to propose bylaw amendments from 20 to 10

ADOPT

BC-22-04

Remove Executive Director Position from NARFE Bylaws

Deletes all references to the Executive Director position in the bylaws and standing rules

ADOPT

BC-22-07

Discussion of Bylaws at National Conference

Requires that a business session be scheduled at the national conference for the purpose of bylaws discussion and national and regional officer presentations (Only effective if B-22-24 is adopted)

ADOPT

BYLAWS AMENDMENTS RECOMMENDED FOR REJECTION NUMBER

SUBJECT

EFFECT

RECOMMENDATION

B-22-13

Require Two Federations for Bylaws Proposals

Restricts proposals to amend the bylaws to a joint submission by two federations

REJECT

B-22-15

Dues Discount

Changes the dues discount for two- and three-year renewals and dues withholding to a percentage basis

REJECT

B–Bylaw BC–Bylaws Committee

For complete information about the election, including candidates for office and the complete text of each bylaws proposal and accompanying recommendation, as well as a link to discuss candidates and proposals on FEDHub, visit www.narfe.org/2022election.

NARFE MAGAZINE AUGUST 2022

A great move

for NARFE members

Experience a senior living lifestyle that features restaurant-style dining, housekeeping, laundry and more with special savings available for NARFE members.

SENIOR LIVING:

7.5% OFF

monthly fee/basic service rate*

IN-HOME SERVICES:

10% OFF

service rate for in-home services**

SHORT-TERM STAY:

DISCOUNTED RATES VARY BY COMMUNITY***

For more information, call (866) 787-9775 or visit brookdale.com/NARFE. Applicable to all discounts: Residents under a Life Care Agreement are not eligible for the discounts. These discounts do not apply to any room, board or services which are paid for all or in part by any state or federally funded program. Discounts are available to NARFE members and their family members, including spouse, adult children, siblings, parents, grandparents, and corresponding in-law or step adult children, siblings, parents, and grandparents through current spouse. Subject to availability. Further restrictions may apply. *Discount is only applicable to new residents of a Brookdale independent living, assisted living, or memory care community admitting under an executed residency agreement. Discount applies only to the monthly fee/basic service rate, excluding care costs and other fees and is calculated based on the initial monthly fee/basic service rate. **Discount is only applicable to new clients of personal assistance services by a Brookdale agency under an executed service agreement. ***Discount is only applicable to new residents of a Brookdale assisted living or memory care community admitting under an executed respite agreement. Discount applies to the daily rate.

642750 SR

brookdale.com

Washington Watch

NARFE Urges Appropriations Subcommittees to Seek Answers From OPM Retirement Services

n April 21, NARFE National President Ken Thomas sent letters to the House and Senate Financial Services and General Government Subcommittees

requesting the addition of report language in their fiscal year 2023 appropriations bills to improve oversight of the Office of Personnel Management’s (OPM) Retirement Services (RS) division. These subcommittees have jurisdiction over funding for OPM and can require certain information from the agency. The letter highlighted concerns about significant retirement processing delays and the inability of annuitants and their families to connect with OPM RS to resolve

monthly reports indicating the length of time it takes to process initial retirement claims, applications for survivor benefits and annuitant health benefit adjustments, as well as the number and percentage of unanswered calls. Thomas concluded the letters by stating, “NARFE understands that staffing shortages exacerbated by the COVID-19 pandemic may be hampering OPM’s ability to process requested changes

issues. NARFE members have reported delays of six months or more in receiving survivor annuities, in addition to other processing delays. NARFE requested specific language that would indicate that the committee is concerned with the level of service provided by RS and direct OPM to provide quarterly briefings to the committee on efforts to improve services. The language would also require OPM to post online 12

NARFE MAGAZINE AUGUST 2022

AUGUST ACTION ALERT: URGE YOUR LAWMAKERS TO COSPONSOR WEP AND GPO REPEAL BILL The Social Security Fairness Act, H.R. 82/S. 1302 is a bill to repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These long-standing, misguided provisions reduce the hard-earned Social Security benefits of nearly 2 million people nationwide, and it’s time for Congress to pass this legislation and bring immediate financial relief to those affected. At press time, we had secured 281 cosponsors—just nine short of the number needed to ensure floor consideration on the issue. Join NARFE’s continued effort to urge lawmakers who have yet to support the bill to do so immediately. Use NARFE’s Legislative Action Center, located at www.narfe.org, to personalize and send your message directly.

MYTH VS. REALITY MYTH: The federal workforce has the same age demographics as the private sector. REALITY: According to a White House report, the federal workforce is older, on average, than the private-sector workforce. Roughly 30 percent of federal employees are older than age 55, while close to 8 percent of federal employees are younger than 30. In the private sector, 23 percent of the workforce is younger than 30. Additionally, every federal agency has fewer employees under 30 today than they had in 2010.

from annuitants in a timely manner. But it is also critical that OPM address and correct these issues. Based on feedback

we have received from NARFE members about the financial hardship this is causing, we believe OPM should place a

higher priority on tackling these issues.” —BY JOHN ROBERT AYERS, POLICY AND PROGRAMS ASSISTANT

President Proposes 4.6 Percent Federal Employee Pay Raise for 2023

ederal employees could see a significant 4.6 percent average pay raise in 2023 based on the Biden administration’s budget. Barring a change of heart from the administration or congressional action to stop it, the president is expected to officially announce the across-the-board pay raise in August and implement that raise and any locality pay increase via executive order in December. President Joseph R. Biden released his fiscal year 2023 budget proposal for the federal government in March. The budget included a proposed 4.6 percent average pay raise for federal

employees, which, if authorized, would be the largest pay increase for federal employees since 2002. The proposal did not specify how much of the raise would be acrossthe-board versus locality pay. Last year, Biden authorized an average 2.7 percent pay raise for federal employees in 2022 through an alternative pay plan after Congress failed to enact a raise through the appropriations process. NARFE National President Ken Thomas issued a statement in support of the 2023 pay raise proposal, emphasizing that it is especially important for federal pay to keep pace with that in

Senate Introduces Equal COLA Act

ith NARFE’s support, Sen. Alex Padilla, D-CA, introduced S.4221, the Equal COLA Act, on May 16. S. 4221, which is companion legislation to H.R. 304, would ensure that cost-ofliving adjustments (COLAs) to Federal Employees Retirement System (FERS) annuities

match the measured change in consumer prices. Currently, FERS retirees do not receive a full COLA if consumer prices increase by more than 2 percent. If consumer prices increase between 2 and 3 percent, FERS COLAs round down to 2 percent. If consumer prices are above 3 percent, FERS

the private sector to maintain “the federal government’s ability to recruit and retain a highly qualified and effective workforce.” The president’s proposal, however, is not the only proposed raise for 2023. In January, Rep. Gerry Connolly, D-VA, and Sen. Brian Schatz, D-HI, introduced a new version of the Federal Adjustment of Income Rates (FAIR) Act that would provide a slightly higher raise: 4.1 percent across-theboard and a 1 percent average increase in locality pay. However, neither chamber has considered those bills. —BY SETH ICKES, POLITICAL ASSOCIATE

COLAs are always 1 percentage point lower. This policy, enacted in the 1980s with the establishment of FERS, fails to protect the earned value of FERS annuities. Mirroring its House counterpart, S. 4221 would provide full COLAs to FERS retirees, creating parity with SEE COLA ON P. 16 NARFE MAGAZINE www.NARFE.org

Washington Watch

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

Legislative Roundup: SECURE Act 2.0, Honoring Civil Servants Killed in the Line of Duty Act and Other Bills Advance

arlier this year, several NARFE-endorsed bills saw movement in the House and Senate.

SECURE ACT 2.0

On March 29, the House passed the SECURE Act 2.0, H.R. 2954, with overwhelming bipartisan support, 414-5. This bill would increase the limit on catch-up contributions to certain retirement plans, such as the Thrift Savings Plan (TSP), and increase the required minimum distribution (RMD) age, among other changes. For those ages 62 to 64 who are enrolled in employer-sponsored retirement plans, SECURE Act 2.0 increases the catch-up contribution limits from $6,500 to $10,000, though it would restrict them to certain contributions. Additionally, the RMD age would increase over the course of a decade, making the initial age for RMDs 72 starting in 2023, 74 starting in 2030 and 75 starting in 2033. As of press time, the Senate had not yet considered the bill.

HONORING CIVIL SERVANTS KILLED IN THE LINE OF DUTY Both the Senate Committee on Homeland Security and Governmental Affairs (HSGAC) 14

NARFE MAGAZINE AUGUST 2022

and the House Committee on Oversight and Reform (COR) advanced the Honoring Civil Servants Killed in the Line of Duty Act, S. 3487/H.R. 7376, in February and April, respectively. The legislation was introduced by Sen. Krysten Sinema, D-AZ, and Rep. Gerry Connolly, D-VA, in each chamber. The bill would increase the death gratuity paid to survivors of federal employees who perish while performing their jobs from $10,000 to $100,000, while simultaneously increasing the funeral allowance from $800 to $8,800. The previous amounts were set back in 1997 and 1966, respectively. The legislation would also tie these new figures with inflation. Both HSGAC and COR advanced the bill with bipartisan support earlier this year, though the committee vote to advance the bill through COR included

some minority dissent, with a 26-14 vote tally. At press time, the legislation awaited consideration by both chambers of Congress.

CHANCE TO COMPETE

The Chance to Compete Act, S.3423/H.R.6967, aims to improve the way federal agencies evaluate and hire candidates by utilizing subject matter experts earlier in the vetting and qualification process, sharing assessments, and focusing more on the individual’s experience and skill set versus a college degree. It would also enhance transparency. Sen. Sinema introduced the Senate version, which HSGAC approved in February. Rep. Jody Hice, R-GA, introduced the House version, which COR unanimously approved via voice vote in April. As of press time, the Chance to Compete Act was set for

Clarification for Missouri tax information from the State Tax Treatment of Federal Annuities in the April 2022 issue: Military retirement income is subtracted from Missouri Adjusted Gross Income and is not subject to Missouri income tax. Public pensions are exempt from income tax up to the maximum social security benefit allowed, which, in the 2021 tax year, is $39,365 per taxpayer. The income limitations are $85,000 in Missouri Adjusted Gross Income for S, HH, MFS or QW; and $100,000 in Missouri Adjusted Gross Income for Married Filing Combined.

deliberation by the full House and Senate.

RECOVER ACT

In the House, Reps. Eleanor Holmes Norton, D-DC, and Dutch Ruppersberger, D-MD, introduced the RECOVER Act, H.R. 7657, on May 3. H.R. 7657 would provide extended availability of identity protection to individuals affected by the 2015 Office of Personnel Management (OPM) data breach. Norton and Ruppersberger argued that the personal information stolen through the breach has “no shelf life,” so neither should the identity protection from Congress. The bill was referred to the House Committee on Oversight and Reform.

BUILDING THE NEXT GENERATION OF FEDERAL EMPLOYEES ACT

Rep. Connolly also introduced the Building the Next Generation of Federal Employees Act, H.R. 6104. This bill seeks to bolster federal internships by creating a Federal Fellowship and Scholarship Center, codifying the Pathways Internship Program,

building an online internship platform directed toward new generations of federal workers, and connecting highly qualified individuals with federal agencies. The bill would provide individuals who successfully complete a qualified federal internship program with five additional points in the competitive service examination. Rep. Connolly believes that the bill would “broaden the talent pool and broaden the opportunity, especially for those with disadvantaged backgrounds.” COR advanced the bill with a 20-15 vote on May 11.

FIRST RESPONDER FAIR RETIRE ACT

COR also advanced another Connolly bill, the First Responder Fair RETIRE Act, H.R. 521, in May. H.R. 521 would provide federal law enforcement and other public safety officers who are disabled during their time of service with the same special category retirement benefits when reassigned to a different civil service position that is not within their retirement category. Connolly noted that

this “technical correction” would provide first responders with the “retirement promise” the federal government made to them.

FEDERAL FIREFIGHTERS FAIRNESS ACT

In a 288-131 vote, the House passed the Federal Firefighters Fairness Act, H.R. 2499, on May 11. This bill would create a presumption of occupational illness for federal firefighters suffering from lung cancer, heart disease, and other specified cancers and infectious diseases. Currently, 49 states recognize certain cancers and illnesses to be work-related for their state and local firefighters. Thus, the bill aims to bring federal law in line with state guidelines. This presumption applies to workers with at least five years of service who become sick within 10 years of their work. The coverage extends to federal firefighters, paramedics, emergency medical technicians, rescue workers, ambulance personnel and hazardous material workers. —BY HANNAH MCLAIN, GRASSROOTS AND PROGRAMS ASSISTANT

OPM Releases Results of 2021 Federal Employee Survey

he Office of Personnel Management (OPM) released the results of the 2021 OPM Federal Employee Viewpoint Survey (FEVS) on April 28. FEVS is “an organizational climate survey administered to the federal workforce to provide agencies a snapshot of how their employees view their current work environment and help inform future agency actions.”

The 2021 survey was sent to more than 800,000 employees across the 10 largest agencies—a break from previous survey methodology. Overall, scores for employee engagement and global satisfaction were down from 2020, but OPM cited unique factors that could explain the drop, including a reduction in popular telework opportunities and the continuation of the pandemic. OPM also noted

that the survey was conducted later than usual and for a shorter period due to the endof-year holidays. Two statements receiving some of the highest level of agreement included “Employees in my work unit meet the needs of our customers” and “My supervisor treats me with respect.” However, the prompt “I believe the results of this survey will be used to make my agency a SEE OPM ON P. 16 NARFE MAGAZINE www.NARFE.org

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

COLA FROM P.13

OPM FROM P.15

Civil Service Retirement System (CSRS) and Social Security COLAs. Without this amendment to the current system, FERS retirees will continue to see their annuities, earned through years of dedicated public service, decrease in value annually—the very issue COLAs were designed to prevent. NARFE National President Ken Thomas issued a statement urging lawmakers to pass the Equal COLA Act, which would “result in more equitable COLA calculations for FERS retirees.”

better place to work” finished last in agreement with 40 percent. Concluding the survey results, OPM said, “Moving forward, federal leadership is taking steps to ensure successful hybrid workplaces and innovative workplace modifications are underway. A focus on metrics from the OPM FEVS, such as the Employee Engagement Index, in the President’s Management Agenda, will help focus and guide leadership to achieve successful initiatives. Times are changing. The ways in which managers lead and employees work are changing as well.”

—BY NARFE ADVOCACY STAFF

—BY JOHN ROBERT AYERS, POLICY AND PROGRAMS ASSISTANT

Don’t Miss Our Fall 2022 Webinar Series NARFE’S FALL WEBINAR SCHEDULE SEPTEMBER 14 New Mutual Fund Window SEPTEMBER 29 To B or Not to B: Is Medicare Part B Right for You? OCTOBER 13 Understanding Medicare Advantage OCTOBER 25 Which FEHB Plan is Right for You? Active Employee Edition NOVEMBER 3 Which FEHB Plan is Right for You? Retiree without Medicare Edition NOVEMBER 17 So Many Choices: Which FEHB Plans Work Best with Medicare Parts A & B? DECEMBER 14 Estate Planning Online Q&A sessions follow each webinar. For details and to register, visit NARFE.org/Institute.

NARFE FEDERAL BENEFITS INSTITUTE

NARFE MAGAZINE AUGUST 2022

Questions? Members can call 800-456-8410 x2 or email NARFE’s federal benefits specialists for one-on-one help fedbenefits@narfe.org. Not a member? Join NARFE today at NARFE.org/Join.

NARFE BILL TRACKER

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

BILL NUMBER / NAME / SPONSOR H.R. 82/S. 1302: The Social Security Fairness Act / Rep. Rodney Davis, R-IL / Sen. Sherrod Brown, D-OH

WHAT BILL WOULD DO Repeals both the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP).

Reforms the Windfall Elimination Provision (WEP) by providing a monthly rebate of $150 to current beneficiaries (age 62 or older before 2023) and creating a new formula to calculate benefits for future WEP-affected individuals (turning 62 in or after 2023).

Referred to the House Committee on Ways and Means 04/01/2021

Fully repeals the Windfall Elimination H.R. 4788: Well-Being for Every Public Servant Act of 2021 / Rep. Provision for individuals whose combined monthly income from Julia Letlow, R-LA their non-Social Security covered government annuity and Social Security Cosponsors: benefits is $5,500 or lower, with H.R. 4788: 0 graduated implementation on benefits above that amount.

Referred to the House Committee on Ways and Means 04/01/2021

H.R. 2337: The Public Servants Protection and Fairness Act / Rep. Richard Neal, D-MA Cosponsors: H.R. 2337: 187 (D) 0 (R)

H.R. 5723: Social Security 2100: A Sacred Trust / Rep. John Larson, D-CT Cosponsors: H.R. 5723: 202 (D) 0 (R) H.R. 5834: Equal Treatment of Public Servants Act of 2021/ Rep. Kevin Brady, R-TX Cosponsors: H.R. 5834: 3 (D) 49 (R)

IDENTITY PROTECTION

Referred to the House Committee on Ways and Means (H.R. 82) 01/04/2021 Referred to Senate Committee on Finance (S. 1302) 04/22/2021

Cosponsors: H.R. 82: 203 (D) 78 (R) S. 1302: 33 (D) 4 (R) 2 (I)

SOCIAL SECURITY

LATEST ACTION(S)

H.R. 7657: Reducing the Effects of the Cyberattack on OPM Victims Emergency Response Act Rep. Eleanor Holmes Norton, D-DC

Expands and strengthens Social Security benefits, improves the solvency of the Social Security trust fund, repeals the Windfall Elimination Provision and Government Pension Offset, and provides for numerous other Social Security related improvements.

Referred to the House Committees on Ways and Means, Education and Labor, and Energy and Commerce 10/27/2021

Reforms the Windfall Elimination Provision (WEP) by providing a monthly payment of $100 to current WEPaffected beneficiaries (age 62 or older before 2023) and $50 for an affected spouse or child. Creates a new formula to calculate benefits for future WEPaffected individuals (turning 62 in or after 2023).

Referred to the House Committee on Ways and Means 11/03/2021

Provides a lifetime’s worth of free identity protection coverage for those whose data was breached during the 2015 hack of the Office of Personnel Management (OPM).

Referred to the House Committee on Oversight and Reform 05/03/2022

Provides for the admission of the State of Washington, DC, into the Union.

Passed the House 4/22/2021, by a vote of 216-208

Cosponsors: H.R. 7657: 1 (D) 0 (R) H.R. 51/S. 51 Washington D.C. Admission Act / Del. Eleanor Holmes Norton, D-DC / Sen. Thomas Carper, D-DE DC STATEHOOD

Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 51) 06/22/2021

Cosponsors: H.R. 51: 216 (D) 0 (R) S. 51: 44 (D) 0 (R) 1 (I) NARFE’s Position:

Support

Oppose

No position

NARFE MAGAZINE www.NARFE.org

NARFE BILL TRACKER

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

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

H.R. 302: Preventing a Patronage Requires presidential administrations to obtain the agreement of Congress to System Act / Rep. Gerry reclassify competitive service positions Connolly, D-VA outside of merit system principles. Cosponsors: H.R. 302: 9 (D) 3 (R) H.R. 6066: Strengthening the Office of Personnel Management (OPM) Act / Rep. Gerry Connolly, D-VA Cosponsors: H.R. 6066: 2 (D) 1 (R) H.R. 6104: Building the Next Generation of Federal Employees Act / Rep. Gerry Connolly, D-VA FEDERAL PERSONNEL POLICY

Cosponsors: H.R. 6104: 3 (D) 0 (R)

H.R. 7376/S. 3847: Honoring Civil Servants Killed in the Line of Duty Act / Rep. Gerald Connolly, D-VA /Sen. Kyrsten Sinema, D-AZ

Advanced from the House Committee on Oversight and Reform by a vote of 25-14 12/02/2021

Establishes a comprehensive Federal Internship and Fellowship Center within the Office of Personnel Management (OPM) to administer, manage and promote all federal internship and fellowship programs. The bill also credits fellows and interns who meet all qualifications with an additional five points in the competitive service examination.

Advanced from the House Committee on Oversight and Reform by a vote of 20-15 05/11/2022

Increases death benefits and funeral allowances for federal employees ($90,000 increase in death benefit for survivors and $8,000 increase to funds granted for funeral allowances).

Advanced from the House Committee on Oversight and Reform, 24-14 05/10/2022

Implements merit-based reforms to the civil service hiring system that replace degree-based hiring with skills- and competency-based hiring.

Advanced from the House Committee on Oversight and Reform unanimously 04/06/2022

POSTAL REFORM

Cosponsors: H.R. 3076: 58 (D) 44 (R)

H.R. 2954: Securing a Strong Retirement Act of 2021 Rep. Richard Neal, D-MA RETIREMENT

Cosponsors: H.R. 2954: 55 (D) 48 (R)

NARFE MAGAZINE AUGUST 2022

Advanced from the Senate Committee on Homeland Security and Governmental Affairs 06/22/2022

Advanced from the Senate Committee on Homeland Security and Governmental Affairs 02/02/2022

Cosponsors: H.R. 6967: 3 (D) 2 (R) S. 3423: 1 (D) 2 (R) H.R. 3076: The Postal Service Reform Act / Rep. Carolyn Maloney, D-NY

Advanced from the House Committee on Oversight and Reform in a 22-18 vote 05/25/2021

Codifies several recommendations for OPM by the National Academy of Public Administration (NAPA), such as clarifying that OPM stands at the center of federal civilian human resource management and ensuring the director of OPM possesses human capital and leadership expertise.

Cosponsors: H.R. 7376: 4 (D) 1 (R) S. 3474: 2 (D) 3 (R) H.R. 6967/S. 3423: Chance to Compete Act of 2021 / Rep. Jody Hice, R-GA / Sen. Kyrsten Sinema, D-AZ

LATEST ACTION(S)

An amended version of the bill addresses previous NARFE concerns and includes provisions that would prevent unintended increases to Federal Employees Health Benefits (FEHB) plan premiums for all federal employees and retirees, preserve choice for current postal retirees regarding whether to enroll in Medicare Part B, repeal the mandate to prefund future postal retiree health benefits, and codify the standard six-day mail delivery schedule.

Amended version of H.R. 3076 passed the House by a vote of 342-92 and the Senate by 79-19; signed into law 4/6/2022

Increases the age at which required minimum distributions (RMDs) start and increases the limit on catch-up contributions to qualified employersponsored retirement plans, such as the Thrift Savings Plan (TSP).

Passed the House by a vote of 414-5 03/29/2022 Referred to the Senate Committee on Finance 03/30/2022

NARFE BILL TRACKER

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

BILL NUMBER / NAME / SPONSOR H.R. 304: The Equal COLA Act / Rep. Gerry Connolly, D-VA Cosponsors: H.R. 304: 28 (D) 4 (R) H.R. 4315: The Fair COLA for Seniors Act / Rep. John Garamendi, D-CA Cosponsors: H.R. 4315: 51 (D) 1 (R)

FEDERAL ANNUITIES

H.R. 4268: Federal Retirement Fairness Act / Rep. Derek Kilmer, D-WA Cosponsors: H.R. 4268: 37 (D) 16 (R) H.R. 521/S. 129: First Responder Fair RETIRE Act Rep. Gerald Connolly, D-VA / Sen. Jon Tester, D-MT Cosponsors: H.R. 521: 16 (D) 4 (R) S. 129: 1 (D) 1 (R) H.R. 6398/S. 3518: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerry Connolly, D-VA / Sen. Brian Schatz, D-HI

WHAT BILL WOULD DO

Provides Federal Employees Retirement Referred to the House System (FERS) retirees with the same Committee on Oversight annual cost-of-living adjustment (COLA) and Reform 01/13/2021 as Civil Service Retirement System (CSRS) retirees. 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 09/07/2021

Allows federal employees who started their careers in temporary positions before transitioning into permanent roles to retroactively contribute toward their retirement for the years they held a temporary position.

Referred to the House Committee on Oversight and Reform 06/30/2021

Allows disabled federal first responders (e.g., law enforcement officers, customs and border protection officers, and firefighters) to continue receiving federal retirement benefits in the same manner as though they had not been disabled.

Advanced from House Committee on Oversight and Reform by a voice vote 05/11/2022

Provides federal employees with a 5.1 percent average pay raise in 2023.

Referred to the House Committee on Oversight and Reform (H.R. 6398) 1/13/2022

FEDERAL COMPENSATION

Extends paid leave to federal and postal employees for all conditions covered by the Family and Medical Leave Act (FMLA).

Approved by the House Committee on Oversight and Reform (H.R. 564) 07/20/2021 Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 1158) 04/15/2021

Creates a presumption of occupational illness for federal firefighters, covering ailments such as cardiovascular disease, cancers and certain infectious diseases that 49 states already presume to be work-related for their state and local firefighters.

Passed the House by a vote of 288-131 05/12/2022

Cosponsors: H.R. 564: 36 (D) 0 (R) S. 1158: 9 (D) 0 (R) H.R. 2499/S. 1116: Federal Fire Fighters Fairness Act of 2022 Rep. Salud Carbajal, D-CA / Sen. Thomas Carper, D-DE Cosponsors: H.R. 2499: 176 (D) 27 (R) S. 1116: 16 (D) 2 (R) 1 (I)

Referred to the Senate Committee on Homeland Security and Governmental Affairs 01/28/2021

Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 3518) 01/19/2022

Cosponsors: H.R. 6398: 51 (D) 0 (R) S. 3518: 14 (D) 0 (R) 1 (I) H.R. 564/S. 1158: Comprehensive Paid Leave for Federal Employees Act / Rep. Carolyn Maloney, D-NY / Sen. Brian Schatz, D-HI

LATEST ACTION(S)

NARFE’s Position:

Support

Refereed to the Senate Committee on Homeland Security and Governmental Affairs 05/12/2022

Oppose

No position

NARFE MAGAZINE www.NARFE.org

Find this and other great deals on www.fepblue.org/blue365

More Than Just Hearing Aids Blue Cross and Blue Shield Service Benefit Plan members get a full hearing care package when they use their allowance through TruHearing®

The TruHearing Program Includes: Personalized Care Guidance and assistance from a TruHearing Hearing Consultant Professional exam from a local, licensed provider 1 year of follow-up visits for fitting and adjustments to ensure you’re completely satisfied with your hearing aids

Next-Generation Sound The latest chips and algorithms combine to make speech clearer, even in the most challenging environments Advanced sensors automatically adjust to the noise around you for better clarity and natural sound New models include sound enhancement technology to make your voice sound more natural to you

The Service Benefit Plan will pay a hearing aid benefit for Standard and Basic Options up to $2,500 total every 5 calendar years for adults age 22 and over, and up to $2,500 total per calendar year for members up to age 22. FEP Blue Focus does not have a hearing aid benefit. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in the Blue Cross and Blue Shield Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under the Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefit first before accessing the savings of the Blue365®

Devices for Your Lifestyle Bluetooth connectivity for streaming your favorite music, TV and phone calls straight to your ears3 A wide variety of rechargeable models that keep a charge for an entire day4 Options to match your lifestyle including virtually undetectable devices

Discount Program. To find out what is covered under your policy, contact the customer service number on the back of your member ID card. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. These items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Disputed Claims process. Blue Cross Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time.

Made Available Through:

Example Savings (per pair) Prices and products subject to change. For more information, visit TruHearing.com AVERAGE RETAIL PRICE

TRUHEARING PRICE

ALLOWANCE (UP TO $2,500)1

TruHearing® Advanced Widex Moment® 220 ReSound ONE™ 5 Signia® Styletto® 3X Oticon More® 3

$5,440 $3,320 $3,496 $5,166 $6,750

$2,500 $2,500 $2,590 $2,700 $3,050

–$2,500 –$2,500 –$2,500 –$2,500 –$2,500

Starkey® Livio® 2400 Phonak® P-R90

$5,704 $7,328

$4,100 $4,390

–$2,500 –$2,500

SAMPLE PRODUCT

YOU PAY2

$0 $0 $90 $200 $550 $1,600 $1,890

Rechargeable | Listed products are smartphone compatible3

Call TruHearing today and start saving!

Call 1-877-360-2432 | For TTY, dial 711

TruHearing is an independent company that provides discounts on hearing aids.

Price shown does not include cost of comprehensive hearing exam. Examination and testing for prescribing of hearing aids is covered under the Service Benefit Plan. The member should confirm that the provider rendering the hearing exam is a Preferred provider. If the provider is Non-preferred, the member may be charged a maximum fee of $45 for the exam, and the member may need to submit a claim for reimbursement. Must be a Service Benefit Plan member to access TruHearing discounted pricing. TruHearing is offered through Blue365, which provides exclusive health and wellness deals and is a program of Blue Cross Blue Shield Association, an association of independent Blue Cross and Blue Shield companies. The Blue Cross® and Blue Shield® words and symbols, Federal Employee Program®, FEP® and Blue365® are all trademarks owned by Blue Cross Blue Shield Association.

Smartphone compatible hearing aids connect directly to iPhone®, iPad®, and iPod® Touch devices. Connectivity also available to many Android® phones with use of an accessory. Rechargeable features may not be available in all models and styles. All content ©2021 TruHearing, Inc. All Rights Reserved. TruHearing® is a registered trademark of TruHearing, Inc. All other trademarks, product names, and company names are the property of their respective owners. Listed benefit amount may differ from customer's actual benefit. Actual customer payment will vary. Follow-up provider visits included for one year following hearing aid purchase. Hearing aid repairs, and replacements subject to provider and manufacturer fees. For questions regarding fees, contact TruHearing customer service. FEP_NARFE_AD_0221

Questions & Answers

Q&A

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

EMPLOYMENT THRIFT SAVINGS PLAN (TSP)

I heard there are changes coming to the TSP. Where can I find more information?

Yes, the TSP moved to a new recordkeeping system in early June. All TSP participants need to set up a new login for the new My Account. Features of the system include: • 24/7 virtual assistant (AVA). • Personalized support to move money from IRAs, SIMPLE IRAs and other eligible employer plans. • TSP mobile app. • Mutual fund window (additional fees). • Civilian and a uniformed service accounts viewable in one place. • Electronic signatures available. To learn more about these recent changes to the TSP, visit www.tsp.gov/new-tsp-features/ summary-of-changes/.

MEDICARE ENROLLMENT

I am turning age 65 and still working. I plan to work for a few more years and am in good health. Do I have to sign up for Medicare?

If you are covered by current employment health insurance, such as the Federal Employees Health Benefit (FEHB) program, you do

NARFE MAGAZINE AUGUST 2022

not have to enroll in Medicare at age 65. You will have a Special Enrollment Period (SEP) to enroll in Medicare Part B without a late enrollment penalty following your retirement. Unless you wish to continue to contribute to a Health Savings Account (if you are enrolled in a high-deductible health plan), you may wish to enroll in Medicare Part A hospital insurance, which has no premium since you’ve paid the 1.45 percent payroll tax during your career. This can be done by contacting Social Security during your Initial Enrollment Period that begins three months prior to your turning age 65 and ends three months following it. This could provide some additional benefits if you are admitted for inpatient hospitalization. Medicare Part B medical insurance does have a monthly premium; the standard premium for Medicare Part B in 2022 is $170.10/month/person. Typically, there is a “penalty” of 10 percent of the standard premium for each 12-month period that you delay enrollment. However, employees who are still working after their 65th birthday can use the SEP to enroll within 8 months after they retire and not have to pay the penalty.

Special Enrollment Period Fact Sheet: www.ssa.gov/pubs/ EN-05-10012.pdf. Medicare Benefits: www.ssa. gov/benefits/medicare/. Note: TRICARE, the health care program for active-duty or retired uniform service members, National Guard or Reserve members, and their eligible family members, requires enrollment in Medicare Parts A and B to be covered under TRICARE For Life. For more information visit www. tricare.mil/. TRICARE For Life offers secondary coverage to TRICARE beneficiaries who have both Medicare Parts A and B. Federal employees may use FEHB coverage while employed and then add Medicare Parts A and B after retirement. Once retired, you may suspend FEHB coverage to use TRICARE For Life and Medicare. This avoids having to pay the Medicare Part B premium during your employment, since the late enrollment penalty is waived. Retirees may suspend FEHB using form RI 79-9: www.opm. gov/forms/pdf_fill/ri79-9.pdf.

UNUSED SICK LEAVE CONVERSION

I know unused sick leave can count toward the retirement benefit calculation. Can you explain

how the hours are converted to service credit?

You are correct. Unused sick leave hours are credited in the computation of your Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) retirement; however, the credit for sick leave cannot be used to determine when you are eligible to retire. You have to be old enough and have enough creditable service to meet the minimum age and service requirements under both CSRS and FERS, but sick leave credit can be used to increase the dollar value of your retirement benefit. Using the 2,087-hour sick leave conversion chart, you can find your hours of sick leave credit and see which column of months and row of days it is equal to. If your number of hours falls between two of the numbers on the chart, round up to the higher number. If you have more than 2,087 hours of sick leave, then subtract 2,087 from your balance since you have more than one year of sick leave credit. The credit for sick leave is added to your total length of service. The chart used to convert hours of sick leave to months and days of credit can be found here: www. opm.gov/retirement-services/ publications-forms/pamphlets/ ri83-8.pdf. Your retirement is computed based on whole years and months, which means that any leftover days fewer than 30 are not used in the computation. Once you determine your date of retirement and project the balance of potential hours of sick leave, you can find out if you have any leftover days. Those days can be converted back to hours of “use or lose” sick leave credit using the chart and finding the hours next to

the column labeled “days.” Most federal agencies have retirement benefits specialists who can help you determine an estimate of your total creditable service along with sick leave credit. Remember, however, that the Office of Personnel Management (OPM) is the final authority on the computation of your CSRS or FERS retirement benefit.

RETIREMENT RETIREMENT ELIGIBILITY

I worked for a federal agency for more than five years and had deductions for retirement benefits before I left. Am I eligible for any benefit?

Yes, you would be eligible for a deferred retirement as long as you were covered by a retirement system (CSRS, CSRS Offset or FERS) for at least five years while working as a civilian and left your contributions in the

retirement fund. To apply, submit the appropriate application approximately 60 days prior to your 62nd birthday. You can submit them if you have already turned 62. • CSRS and CSRS Offset: OPM Form 1496A - “Application for Deferred Retirement”: www.opm.gov/forms/ pdf_fill/opm1496a.pdf and CSRS pamphlet: www.opm. gov/retirement-services/ publications-forms/ pamphlets/ri83-13.pdf. CSRS Offset pamphlet: www.opm.gov/retirementservices/publications-forms/ pamphlets/ri83-19.pdf. • FERS: RI 92-19 - “Application for Deferred or Postponed Retirement” http://www.opm. gov/forms/pdf_fill/ri92-19. pdf and FERS pamphlet: www.opm.gov/retirementservices/publications-forms/ pamphlets/ri92-19a.pdf. Note the need to submit additional documentation as indicated on the forms. NARFE’s

COUNTDOWN TO COLA The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW) increased 1.21 percent in May 2022. To calculate the 2023 cost-of-living adjustment (COLA), the 2022 thirdMonthly % % Change MONTH CPI-W Change from 253.412 quarter indices will OCTOBER 2021 271.552 0.92 1.17 be averaged and compared with the NOVEMBER 273.042 0.55 1.72 2021 third-quarter DECEMBER 273.925 0.32 2.05 average of 268.421. JANUARY 2022 276.296 0.87 2.93 The percentage FEBRUARY 278.943 0.96 3.92 increase determines MARCH 283.176 1.52 5.50 the COLA. May’s index, 288.022, is up 7.30 APRIL 284.575 0.49 6.02 percent from the base. MAY 288.022 1.21 7.30 The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services.

JUNE JULY AUGUST SEPTEMBER

For FECA COLA updates, visit narfe.org and search for FECA.

NARFE MAGAZINE www.NARFE.org

Questions & Answers

Federal Benefits Institute has webinars members can watch to help prepare them apply for a regular or deferred retirement. To view the archived webinars, visit www.narfe.org/federal-benefitsinstitute/narfe-webinars/ webinar-archive/.

MRA+10 RETIREMENT

I was eligible to retire under FERS MRA+10 when I left government service. How do I apply for my benefit?

Employees who have reached the minimum retirement age (MRA) but didn’t complete enough service for an immediate, unreduced retirement may choose to resign and postpone applying for the FERS basic retirement benefit to avoid a 5 percent reduction to their annuity for each year they are under age 62. This option of postponing a FERS retirement to avoid the age reduction is available to employees who have reached the MRA with 10 or more years of service but less than 30 years, or those who are age 60 or 61 who have less than 20 years of service but more than 10. Follow the instructions in the prior response for filing an application for a deferred or postponed retirement under FERS.

CIVILIAN RETIREMENT FOR MILITARY VETERANS

A recent “Benefits Brief” column discussed the possibility of increasing retirement benefits for veterans. Can I make a deposit for my military service after retirement?

Unfortunately, military deposits must be made while still employed. Information on how employees

NARFE MAGAZINE AUGUST 2022

can make the deposits were in the May and June 2022 issues of NARFE Magazine. All archived editions are available for members at www.narfe.org/ magazine-issues/.

RETIREMENT UNDER MULTIPLE SYSTEMS

I’m so confused. I retired on January 1, 2021, under CSRS Offset retirement coverage. During my 24-year career, I was covered under CSRS for seven years in the 1970s. I left federal service for a few years and then returned in the 1980s under a temporary appointment where I was only paying into FICA (Social Security) for three years. After that appointment ended, I again separated from federal employment, but I returned in 2007 and was covered under the CSRS Offset retirement plan for 14 years. How does my retirement get computed with three different retirement coverages? Am I affected by the Windfall Elimination Provision (WEP) since I will receive a pension from work where I didn’t pay into Social Security for seven years?

Retirement can be confusing, especially when your coverage has changed with each new appointment. The WEP requires that Social Security use a different formula for those who receive a pension that was not subject to Social Security (e.g., CSRS) unless you meet one of the exceptions. You may meet the exception of having performed 30 or more years with substantial Social Security covered earnings. There is a partial exception for those with 20 to 30 years of substantial earnings. The Fact Sheet on WEP (http://www.ssa.gov/ pubs/EN-05-10045.pdf) lists

how much income is required to be considered a substantial earnings amount. You can find the amount you earned each year on your Social Security earnings record by creating a “my Social Security” account at www.ssa. gov/myaccount/. There may be a time in your federal career when you didn’t have retirement coverage but were covered by FICA (Social Security) only. The time that you were covered under the CSRS Offset retirement coverage was also covered by FICA (Social Security). You also need to know that your retirement will be reduced, or “offset,” when you are receiving your CSRS retirement and also qualify for Social Security retirement benefits. To learn more about CSRS, CSRS Offset and the deposit you owed for your temporary service that was not subject to retirement deductions but only the FICA tax, visit www. opm.gov/retirement-services/ csrs-information/. NARFE continues to lobby for a repeal or reform of the WEP and the Government Pension Offset (GPO). To read more on NARFE’s support of changing these laws that impact those who receive pensions from work not covered by Social Security, visit www.narfe.org/advocacy/ issue-briefs-and-fact-sheets/.

FEGLI PROCESSING TIME

With a substantial delay in processing the death of an annuitant, is the processing of a life insurance claim also delayed?

Federal Employees’ Group Life Insurance (FEGLI) death benefits should be paid by the insurance

company within 30 days from the date a beneficiary filed a notice of claim and submitted all necessary supporting documents. FEGLI must receive the following documents to pay death benefit claims: • Form FE-6 – “Claim for Death Benefits:” www.opm. gov/forms/pdf_fill/fe6.pdf, or claim for a dependent covered under Option C family coverage, form FE-6 DEP: www.opm.gov/forms/ pdf_fill/fe6dep.pdf. • A certified copy of the death certificate is required with the cause and manner of death. • If you signed a document with a funeral home that authorizes payment directly to them, include a copy of that document.

• If the insured was an active employee who died in an accident and you’re making an accidental death benefit claim, include proof of the accident— police reports and other supporting documents. • If you are filing this claim on behalf of the estate, include a copy of the appointment papers issued by the court. • If a trust is designated, include a statement that the trust is still in effect and you are authorized to act under the trust, and a copy of the trust document. If you are not the original trustee, include a copy of the page naming you as successor trustee. • If you have power of attorney, include a copy of the appointment papers naming

you as the attorney-in-fact for the beneficiary. The best way to ensure prompt processing of a claim is to talk to a FEGLI claims representative by calling 1-800-633-4542. The OFEGLI is available Monday through Friday, 8:30 a.m. to 4:00 p.m. ET. Each claimant/beneficiary is required to complete his or her own form. Claim numbers are typically provided to claimants within three to five business days. 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.

Enter the Silver Circle With a Contribution Today The Silver Circle donor recognition program supports the direct work of NARFE: providing information and advocacy you rely on. Your donation to the association’s general fund ensures that NARFE has the resources to continue to fight for the financial security and earned benefits for you and the federal community. Member dues alone cannot support this mission.

Donate now to the Silver Circle at www.narfe.org/silvercircle. With NARFE’s thanks, you will receive: • •

A Silver Circle pin and recognition on www.narfe.org with a donation of $100 or more. A Silver Circle pin, your name plate placed on the Silver Circle plaque at NARFE Headquarters, recognition on www.narfe.org and recognition at the NARFE yearly conference with a donation of $1,000 or more.

For details on making a tribute gift in honor of, or in memory of, an outstanding NARFE member, and to learn more about the Silver Circle donor recognition program, please visit www.narfe.org/silvercircle or send an email to donatenow@narfe.org. To donate by check, please see the coupon on Page 47.

NARFE MAGAZINE www.NARFE.org

Benefits Brief

What Do You Do If You Have Both a Military and Civilian TSP?

f you’ve served as both a member of the uniformed services and as a civilian federal employee, it’s possible you have two Thrift Savings Plan (TSP) accounts—one for each type

of employment. After separating from service from one or the other, the TSP permits participants to combine the two. While I’m a big fan of simplicity, including consolidating as many accounts as possible, there are factors to consider before combining a uniformed services TSP account and a civilian TSP account.

Uniformed service members participating in the TSP generally follow the same rules, have the same options and receive the same benefits as participants in the civilian TSP. The notable differences have to do with the contribution rules. Members of the uniformed services who are deployed in a war zone may contribute their tax-exempt income to the traditional TSP, the Roth TSP or a combination of the two. Tax-exempt contributions are not permitted in the civilian TSP. Furthermore, uniformed service members deployed in a combat zone are permitted to contribute more than the standard elective deferral limit ($20,500 for 2022, or $27,000 for those 50 and older) civilian employees are subject to. In addition to the elective deferral, deployed service members may contribute an excess amount from their taxexempt pay to the traditional TSP, up to the annual addition limit, which for 2022 is $61,000 (not including catch-up contributions). The annual addition limit applies to contributions from all sources, including tax-deferred, Roth, taxexempt and agency contributions. 26

NARFE MAGAZINE AUGUST 2022

Although contribution types and limits may differ, participants in the uniformed services TSP and civilian TSP have the same investment options and withdrawal options. Given the similarities, it generally makes sense to combine uniformed services and civilian TSP accounts when eligible. Once separated, participants have the option of transferring the TSP account related to the separation into the other TSP account. If separated from both uniformed services and civilian employment, the participant has the choice of which TSP account to transfer. Bear in mind that the civilian TSP does not allow tax-exempt contributions, including ones held in the traditional balance of a uniformed services TSP account. If a participant requests the TSP to transfer a uniformed services TSP account into his or her civilian TSP account, and the uniformed services account has tax-exempt contributions in the traditional balance, the TSP will transfer everything except for the taxexempt contributions. Tax-exempt contributions made to the traditional TSP

are not taxed when distributed from a uniformed services TSP, but the earnings on those taxexempt contributions are. When tax-exempt contributions exist in the traditional balance, any withdrawal from the traditional balance will come proportionately from the tax-exempt contributions and pretax money (tax-deferred contributions and earnings). Rather than receive a portion of those tax-exempt contributions with each withdrawal, a participant with both a uniformed services and a civilian TSP account can take advantage of the TSP rules and isolate the taxexempt balance in a uniformed services TSP account for either a tax-free distribution or tax-free Roth conversion. Stay tuned next month to learn more about this. MARK A. KEEN, CFP®, PARTNER, KEEN & POCOCK. SECURITIES OFFERED THROUGH THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA), MEMBER FINRA/SIPC. ADVISORY SERVICES OFFERED THROUGH STRATEGIC BLUEPRINT LLC AND SFA. MARK KEEN IS A REGISTERED PRINCIPAL OF SFA AND AN INVESTMENT ADVISER REPRESENTATIVE OF SFA AND STRATEGIC BLUEPRINT, LLC. SFA AND STRATEGIC BLUEPRINT ARE AFFILIATED THROUGH COMMON OWNERSHIP BUT OTHERWISE UNAFFILIATED WITH KEEN & POCOCK. NEITHER STRATEGIC BLUEPRINT NOR SFA PROVIDE TAX OR LEGAL ADVICE.

BENEFITS BRIEF IS BROUGHT TO YOU IN PART BY THE GENEROUS SUPPORT OF BLUECROSS BLUESHIELD ASSOCIATION.

CONTROL WHAT YOU CAN. INSURE WHAT YOU CAN’T. At whatever stage of life you’re in, or how well you have planned, events can happen that are simply beyond your control. That is why NARFE has designed an insurance program to help provide our members with peace-of-mind protection against the unexpected.

NARFE Insurance Services-sponsored program

Whether providing life insurance, protecting your family’s health, securing your retirement, or purchasing coverage for a four-legged friend, the NARFE Insurance Services-sponsored program includes a full spectrum of products that can help you protect yourself and your loved ones at highly competitive rates available to NARFE members like you.

Products designed for NARFE members: Helping provide our members peace of mind in a world of uncertainty.

• Dental Plans

• Pet Insurance

• Hospital Indemnity and Short Term Recovery Insurance Plan

• Vision Insurance

• Senior Age Whole Life Insurance • Senior Term Life Insurance Plan

• Prescription Discount Card • Major Medical Insurance • AssistPlus

To learn more* about the NARFE Insurance Services-sponsored program, call 1-800-233-5764 or visit us at www.narfeinsurance.com

*Information includes costs, exclusions, limitations, reduction in benefits, and terms of coverage and carrier identification. Coverages may vary and may not be available in all states.

Program Administered by Mercer Health & Benefits Administration LLC

NARFE MEMBERS STEP UP ADVOCACY EFFORTS IN AUGUST

NARFE MAGAZINE AUGUST 2022

BY MARSHA PADILLA-GOAD AND HANNAH MCLAIN

ARFE’s Grassroots Advocacy Month (GAM) is getting underway. GAM is held each year in conjunction with the August state and district work

periods that runs through Labor Day. Members of Congress leave their Capitol Hill offices and head back to their districts and states to listen to their constituents’ concerns. During this time, NARFE mobilizes its members to engage in advocacy activities highlighting its legislative priorities.

NARFE MAGAZINE www.NARFE.org

NARFE supports all bills introduced in the 117th Congress that address the unfair WEP and GPO because they would bring much-needed financial relief to those affected.

NARFE encourages members to review resources available on the campaign’s dedicated webpage located in the advocacy section of its website [www.narfe.org]. Included is a prerecorded webinar that lists weekly activities and provides guidelines on how to engage lawmakers throughout the month.

Grassroots Advocacy Month Legislative Priorities

This year’s campaign prioritizes efforts to reform or repeal the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), and garner support for more accurate cost-of-living adjustments (COLAs) for seniors. The Windfall Elimination Provision and Government Pension Offset Both WEP and GPO reduce the Social Security benefits of local, state and federal retirees who worked in employment covered by Social Security (e.g., private-sector jobs) and who also receive a government annuity from their non-Social-Securitycovered government employment [e.g., federal employment under the Civil Service Retirement System (CSRS)]. WEP reduces an individual’s primary Social Security benefit, while GPO reduces spousal benefits. NARFE supports all bills introduced in the 117th Congress that address the unfair WEP and GPO because they would bring much-needed financial relief to those affected. However, two leading bills have gained considerable congressional support, shifting the advocacy team’s efforts to a dual-track effort. Doing so focuses our efforts on bills with the best prospect for success while also demonstrating support for alternative pathways for relief.

NARFE MAGAZINE AUGUST 2022

Our top priority is to build support for the Social Security Fairness Act, H.R. 82/S. 1302, a bill to repeal the WEP and GPO. H.R. 82 was introduced by Rep. Rodney Davis, R-IL, with Rep. Abigail Spanberger, D-VA, as a leading original cosponsor. Its Senate companion bill, S. 1302, was introduced by Sen. Sherrod Brown, D-OH. At press time, H.R. 82 had garnered 281 cosponsors—17 more than in the previous Congress. It was also just nine cosponsors shy of the 290 mark, which, due to a recent rules change, would allow the bill to bypass committee consideration and force a vote on the floor of the House of Representatives on the issue. As an alternative, we also support the Public Servants Protection and Fairness Act, H.R. 2337, a bill to reform the WEP. Under H.R. 2337, Social Security beneficiaries turning age 62 before 2023 would receive a $150 monthly rebate, offsetting some of the WEP penalty. For those turning 62 in 2023 or later, a new, fairer formula that calculates benefits based on the proportion of earnings covered by Social Security to total earnings would be implemented. The future retirees would receive the better result of either the new formula or the old one. While WEP and GPO repeal is ideal, H.R. 2337 would offer incremental progress toward full repeal should it advance. H.R. 2337 has gained 189 cosponsors. Despite this, the bill stands a greater chance of advancing through the normal committee process because its sponsor is the House Committee on Ways and Means Chairman Richard E. Neal, D-MA. As the leader of the issue’s jurisdictional committee, Rep. Neal controls the agenda and can choose to advance his bill if he thinks he can get the simple majority support of 218 members.

There are great savings options for federal retirees Can you switch and save? If you didn’t change your health plan when you became eligible for Medicare, now could be the time to switch and save. Contact us to learn more about Aetna® plans designed for federal retirees.

Plans o�ered through the Federal Employees Health Bene�ts (FEHB) Program:

Aetna Advantage

Aetna Direct

With this plan, you can opt-in to our Medicare Advantage plan just for federal retirees without suspending your FEHB coverage.

• $0 deductibles and copays • Prescriptions for as little as $2 from our preferred pharmacies • Low premiums • $900 annual credit toward your Medicare Part B premium • SilverSneakers® at no extra cost

• A fund to help pay prescription costs or your Medicare Part B premium • $0 deductibles and copays • $6 generic prescriptions from our preferred pharmacies

Why not connect live with us and learn more about your health plan options? Connect with our team at AetnaFedsLive.com and you can: Chat online

Schedule a one-on-one consultation

Attend live webinars

Or use our retiree portal at AetnaFeds.com/retireeplans to explore at your own pace.

Ready to enroll? If you’re eligible: Enroll online at RetireeFEHB.OPM.gov Or call the O�ce of. Personnel Management (OPM) Retirement Information Center at 1-888-767-6738 (TTY: 711) Aetna Medicare is a HMO, PPO plan with a Medicare contract. Enrollment in our plans depends on contract renewal. See Evidence of Coverage for a complete description of plan bene�ts, exclusions, limitations and conditions of coverage. Plan features and availability may vary by service area. SilverSneakers is a registered trademark of Tivity Health, Inc. ©2021 Tivity Health, Inc. All rights reserved. Health insurance plans are o�ered and/or underwritten by Aetna Life Insurance Company (Aetna). This is a brief description of the features of this Aetna health insurance plan. Before making a decision, please read the plan’s applicable federal brochure(s). All bene�ts are subject to the de�nitions, limitations and exclusions set forth in the federal brochure. Plan features and availability may vary by location and are subject to change. Aetna does not provide care or guarantee access to health services. For more information about Aetna plans, refer to AetnaFeds.com/retireeplans. ©2021 Aetna Inc. Y0001_GRP_4009_3488_2021_M 19.12.345.1 A (9/21)

NARFE MAGAZINE www.NARFE.org

A few strategically published letters across the country can keep an issue alive and generate plenty of community discussion.

More Accurate Cost-of-Living Adjustments for Seniors NARFE supports two bills to improve COLAs for federal retirees—one focused on improving Federal Employees Retirement System (FERS) COLAs, and the other on improving how COLAs are determined for both FERS and CSRS annuities and Social Security benefits. NARFE supports the Equal COLA Act, H.R. 304/S. 4221, which would equalize COLAs among different classes of federal retirees. This House bill was introduced by Rep. Gerry Connolly, D-VA, and the Senate companion bill was introduced by Sen. Alex Padilla, D-CA. Current law holds the FERS COLA at 2 percent if the change in consumer prices is between 2 and 3 percent, and it reduces FERS COLAs by 1 percentage point if the change in consumer prices exceeds 3 percent. This inequitable policy, enacted in the 1980s with the creation of FERS, fails to fully protect the earned value of FERS annuities. H.R. 304 would correct this policy and bring COLAs for FERS retirees in line with the full COLAs that CSRS retirees and Social Security beneficiaries currently receive. NARFE also supports the Fair COLA for Seniors Act, H.R. 4315, a bill that would base COLAs for Social Security beneficiaries, federal annuitants, military retirees and certain veterans’ benefits on the changes in the Consumer Price Index for the Elderly (CPI-E) instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-E measures price changes for Americans age 62 and older. If historical averages hold, using the CPI-E to determine COLAs would increase COLAs by an estimated 0.27 percentage points per year. Because this difference would 32

NARFE MAGAZINE AUGUST 2022

compound over the years, it would result in significant increases in COLAs over time. The current CPI-W calculation fails to account for seniors’ spending habits, most notably the portion used for medical care. Seniors spend significantly more than what the general population spends (on average) on health care; it accounts for about 12 percent of spending for those age 62 and older but only 8 percent for the general population. As health care costs outpace inflation for other goods, seniors are left worse off. Member advocacy on these two legislative priorities during this time is critical. Like NARFE, almost every constituent group is mobilizing its members to engage in advocacy activities to discuss their issues. With a multitude of competing interests during this time, our conversations with lawmakers ensure that NARFE issues remain on their minds as they head back to Capitol Hill after Labor Day.

Advocacy Activities Engaging in Meetings and Events We strongly encourage NARFE chapter and federation legislative officers, including congressional district and senatorial leaders, to schedule in-person or virtual meetings, attend town halls and meet and greets, and invite lawmakers and candidates to speak at federation and chapter meetings and events. Surveys of congressional staff routinely rate in-person or virtual face-to-face meetings as the most effective form of advocacy. Letter-Writing In addition to sending letters to lawmakers via the NARFE Legislative Action Center, members can also send letters to the editors of their community newspapers to continue educating the public about the unfair WEP and GPO.

Enjoy the ease of

Showering Safely So you can stay in the home you love!

Upgrade your bathroom, upgrade your life. With a new walk-in shower, you can make sure your bathroom ages as gracefully as you do. This shower was designed by experts, with you in mind, focusing on safety and convenience when it matters most. Discover how a walkin shower can help reduce the risk of falling, giving you the freedom to enjoy your bathroom again.

Introducing the

ALL NEW Walk-In Shower!

✓ Commercial Grade Non-Slip Floor ✓ Easy-to-reach Shower Wand ✓ Professionally Installed in 1 day ✓ Fold Down Safety Seat ✓ Luxurious 8” Rainfall Shower Head ✓ Ergo L Shaped Grab Bar ✓ Lifetime Warranty ✓ Optional Barrier Free Wheelchair Accessible

Call today and receive exclusive savings of up to

$750 OFF FOR A LIMITED TIME ONLY

Call Toll-Free 1-800-985-8366

Call Now Toll-Free

1-800-985-8366

for more information and ask about our Senior Discounts

www.SafeStepShower.com With purchase of a new Safe Step Walk-In Shower. Not applicable with any previous walk-in shower purchase. No cash value. Must present offer at time of purchase.

FINANCING AVAILABLE WITH APPROVED CREDIT

CSLB 1082165 NSCB 0082999 0083445

NARFE MAGAZINE www.NARFE.org

NARFE has developed an “About NARFE” flyer members can distribute, as well as a Get-Out-The-Vote resource center for access to state-specific voter registration and other resources, available on the campaign website.

Letters to editors (LTEs) are one of the most effective ways to bring attention to an issue. Aside from reaching and informing a wide audience, they are often monitored by elected officials and their staff to find out what issues in the district or state are getting local attention. The letters are among the most widely read features in any newspaper or magazine. A few strategically published letters across the country can keep an issue alive and generate plenty of community discussion. The writer can ask the public to join him or her in a call to action to support or oppose the issue or cause. In previous years, this activity has resulted in dozens of NARFE-published letters throughout the country. Midterm Election Opportunities This year’s campaign is happening amid the 2022 midterm elections. With only three months left for campaigning, incumbents and new candidates are campaigning hard to secure votes for the November 8 elections. Engaging with candidates ensures that they familiarize themselves with NARFE and its legislative priorities before taking a seat in Congress in January 2023. NARFE has developed an “About NARFE” flyer members can distribute, as well as a Get-Out-The-Vote resource center for access to state-specific voter registration and other resources, available on the campaign website. Tracking Member Engagement Members are reminded to use NARFE-provided tools when engaging in advocacy activities like letter writing and making phone calls to lawmakers. Using 34

NARFE MAGAZINE AUGUST 2022

these tools helps us track member engagement across the country and enhances our ability to provide reports to federations and chapters to use and help improve their advocacy efforts. For example, members should use NARFE’s Legislative Action Center to send emails to lawmakers and letters to editors of their community news media outlets. Also, using the toll-free number at 800456-8410 (option 5) to get transferred to the U.S. Capitol Switchboard helps us track call frequencies. The only way to track member participation in congressional events is if members fill out NARFE’s Event Feedback Form, available in the Legislative Action Center.

Advocacy Leader Training Congressional District Leader (CDL) and Senatorial Leader (CL) Training In July, NARFE hosted its first annual CDL and SL training webinar. The training served as onboarding for newly recruited CDLs and SLs and those interested in relearning advocacy basics. The training covered service requirements as well as effective resources and methods for successful engagement. The training also prepared new leaders to jump right into GAM activities and allows them to engage in more advanced grassroots advocacy training at FEDcon22, which is scheduled for August 21-23 at the Westin Kierland Resort and Spa in Scottsdale, AZ. NARFE thanks you in advance for showing up and speaking out during Grassroots Advocacy Month. Please contact us at advocacy@narfe.org if you have any questions or need information about the campaign. —MARSHA PADILLA-GOAD IS NARFE’S DIRECTOR OF GRASSROOTS, AND HANNAH MCLAIN IS THE ASSOCIATION’S GRASSROOTS PROGRAM ASSISTANT.

LIVE LIFE PAIN FREE

FREE ($50 Value) Corrective Fit Orthotics

PATENTED VERSOSHOCK® SOLE

with every shoe purchase

SHOCK ABSORPTION SYSTEM

Excludes sandals.

Enjoy the beneﬁts of exercise with GDEFY

85 91 92 75 %

LESS KNEE PAIN

LESS BACK PAIN

LESS ANKLE PAIN

LESS FOOT PAIN

AVAILABLE

& X-WIDE In a 2017 double-blind study by Olive View UCLAWIDE Medical Center.AVAILABLE WIDTH AVAILABLE

MIGHTY WALK $145

AVAILABLE

Ultimate Comfort Renewed Energy Maximum Protection Improved Posture

AVAILABLE

AVAILABLE AVAILABLE

This product is not intended to treat, cure or prevent any disease.

Men Sizes 7.5-15 M/W/XW

Women Sizes 6-11 M/W/XW

- TB9024MGS Gray - TB9024MLU Blue/Black - TB9024MBL Black

- TB9024FGS - TB9024FGP - TB9024FLP

Gray Salmon/Gray Black

$20 OFF YOUR ORDER

Promo Code MK2HPS4 www.gdefy.com

Expires November 30, 2022

Free Exchanges • Free Returns 100% Satisfaction Guaranteed

Call 1(800) 429-0039 Gravity Defyer Medical Technology Corp. 10643 Glenoaks Blvd. Pacoima, CA 91331 VersoShock® U.S Patent #US8,555,526 B2. May be eligible for Medicare reimbursement. $20 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.

Inspectors General:

Insight Into Program Oversight What IGs do, how they do it and what you should do when the IG’s office calls. BY EVERETT A. CHASEN

ana Moore, PhD, a psychologist by training, was a government employee for 42 years, the last 18 of

which were with the Department of Veterans Affairs’ (VA) Inspectors General (IG) office. There, she served in a variety of positions, including director of VA’s IG Hotline, deputy assistant IG for health care, and assistant IG for management and administration.

NARFE MAGAZINE AUGUST 2022

“VA’s IG office is unique because they have health care providers who work for them to review the quality of the department’s health care,” she explains. “They’re inspectors, not investigators.” The office introduced a series of regular reviews of VA medical centers, looking at different topics, such as medication management focused on long-term opioid use for pain and COVID-19 preparedness and responsiveness. “Medical centers get reviewed on a regular basis,” she adds. When asked about significant accomplishments of the IG office during her tenure, Moore cites instances in which physicians or other health care providers had been harming patients; both IG criminal investigators and health care inspectors were involved in such cases. One case concerned Dr. Robert Levy, a pathologist at the VA’s Fayetteville, AR, medical center. In a 2018 inspection, the IG’s office found that Levy had misdiagnosed patients’ pathological specimens, adversely affecting their health care outcomes, and that he had altered documents to conceal his errors. In 2020, Levy pleaded guilty to involuntary manslaughter and mail fraud; he was sentenced to 20 years in prison and ordered to pay nearly $500,000 in restitution to VA. In 2008, VA health care inspectors found that at least nine patients died because of surgical mistakes and poor post-surgical care at the Marion, IL, VA Medical Center. Two years later, a follow-up report indicated that some of the recommendations to improve patient safety the IG made in the initial investigation had not yet been adopted. A 2015 review, however, indicated that most of the problems found in 2008 had been remedied.

The Job of Inspectors General “An inspector general has two main missions,” explains Allison C. Lerner, JD, IG for the National Science Foundation and chair of the Council of the Inspectors General on Integrity and Efficiency (CIGIE). “To prevent and detect fraud, waste and abuse, and to promote economy and efficiency in the programs and operations of the agencies in which we’re located.” Inspectors general are found within virtually all federal agencies. “One of the most important things to know about us,” says Lerner, who has worked in the IG field since 1991, “is that we are within an agency, but we’re independent of the agency. That’s not an easy thing to understand.” In fiscal year 2020, according to CIGIE’s most recent annual report, more than 14,000 IG employees at 75 agencies conducted audits, inspections, evaluations and investigations. Their work resulted in significant improvements to the economy and efficiency of programs throughout the government, with potential savings totaling approximately $53 billion—roughly a $17 return on every dollar invested. In 2020 alone, IG employees: • Tracked down and located all but one of 192 stolen ventilators, which the U.S. Agency for International Development were sending to El Salvador to help the country respond to the COVID-19 pandemic, and ensured they were delivered to their destination. • Uncovered that a contractor’s subsidiary committed extensive, long-term fraudulent charging of work hours at a Department of Energy facility by inflating the number of workers NARFE MAGAZINE www.NARFE.org

and hours needed to complete projects. It resulted in an agreement by the contractor to repay the government $57.5 million. The fraud, which inflated worker hours by as much as 40 percent per day, had been taking place for 10 years. • Conducted investigative work resulting in a civil action filing by the Department of Justice against five telecommunication companies and their owners for facilitating millions of fraudulent robocalls daily from foreign call centers into the U.S. telecommunications system, triggering injunctions that prevent the companies from continuing to pass on scam calls. • Disrupted the money mule networks that receive and launder scam proceeds. The Social Security Administration’s IG has more than 20 investigations underway and is aggressively pursuing and dismantling these criminal networks.

Development of the Inspectors General Program The concept of using IGs as a tool to provide independent oversight over government operations originated in France in 1668, when King Louis XIV appointed an IG for the French army. That person’s duties included inspecting French troops, and the IG reported directly to the king, not to the army itself. In the 1770s, Frederick the Great created a similar post for the Prussian army. In 1777, George Washington worked with the Continental Congress to create the position of inspector general for the Continental Army. The IG’s job was to bring order and unity to the newly formed Army’s operations, to report directly to General Washington on “abuses, neglect and deficiencies,” and to report periodically to Congress on the state of the military. The first three IGs served without distinction—but the fourth, Baron Friedrich Wilhelm von Steuben, is one of America’s greatest Revolutionary War heroes. Baron von Steuben, who was born in Germany, served as Army IG for nearly six years, until the end of the war. He taught the Army the essentials of military drills, tactics and discipline to improve combat readiness; inspected soldier encampments and set standards for sanitation, food service and order; and enforced the keeping of exact records and strict inspections to reduce war profiteering, 38

NARFE MAGAZINE AUGUST 2022

graft and administrative incompetence in dealing with military supplies. The Baron’s success set a precedent for future IGs, and he has been called the “Father of the Inspector General system.” The Army Inspector General’s Department was formally established by Congress in 1813. By the end of World War II, the Army had about 3,000 IG representatives serving throughout the world. The success of the military’s IG system led directly to the enactment of the Inspector General Act of 1978. The law created IG positions and offices in 12 cabinet departments and gave the IGs the authority to review the internal documents of their agencies, investigate fraud, offer policy advice, handle certain employee complaints and report on their activities to Congress every six months. In 2008, an amendment to the act established CIGIE, the organization Lerner heads. CIGIE‘s mission is to address the integrity, economy and effectiveness issues that transcend individual agencies, and increase the professionalism and effectiveness of personnel by developing policies, standards and approaches to aid in the establishment of a well-trained and highly skilled IG workforce.

The Inspectors General System Today Today, the 75 statutory IGs across the federal government are appointed without regard to political affiliation. Appointments are based on integrity and ability in accounting, auditing, financial analysis, law, management analysis, public administration or investigations. The president nominates IGs at cabinet-level departments and other major agencies, and they require Senate confirmation. These IGs can only be removed by the president. Agency heads appoint and can remove IGs at other federal entities. Both houses of Congress must be notified if an IG is removed by the president or an agency head. Every IG office is responsible for conducting audits and investigations relating to its agency’s programs and operations. IGs have a direct reporting relationship to their agency heads—but also have an independent reporting relationship with Congress. “We’re about the only people in our agencies who can directly engage with congressional staffers and committees without needing the

ALL-NEW mobility technology

Introducing the world’s lightest mobility scooter with anti-tip technology The So Lite Scooter is easy to transport and almost impossible to tip over. TM

Like millions of older Americans, I struggle with mobility. For years, I watched my quality of life slip away, as I was forced to stay home while friends and family took part in activities I’d once enjoyed. I thought I’d made some progress when I got a mobility scooter, but then I realized how hard it was to transport. Taking it apart and putting it back together was like doing a jigsaw puzzle. Once I had it disassembled, I had to try to put all of the pieces in the trunk of a car, go to wherever I was going, and repeat the process in reverse. Travel scooters were easier to transport, but they were uncomfortable and scary to drive, I always felt like I was ready to tip over. Then I found the So LiteTM Scooter. Now there’s nothing that can hold me back. Years of work by innovative engineers have resulted in a scooter that’s designed with seniors in mind. They created Electronic Stability Control (ESC) that makes it virtually impossible to tip over. If you try to turn too quickly, the scooter automatically slows down to prevent it from tipping over. The battery provides powerful energy at a fraction of the weight of most batteries. With its rugged yet lightweight aluminum frame, the So LiteTM Scooter is the most portable scooter ever—but it can hold up to 275 pounds—yet weighs only 40.8 pounds without the battery! What’s more, it easily folds up for storage in a car seat, trunk or even on an

FREE

2 Carry-all bags (a $38.90 value)

Why a So Lite Scooter is better: TM

• Latest “No-Tip” Technology • Lightweight yet durable

• Folds and locks in seconds • Easier to operate

airplane. It folds in seconds without tools and is safe and reliable. Best of all, it’s designed with your safety in mind, from the newest technology and superior craftsmanship. Why spend another day letting your lack of mobility ruin your quality of life? Call now and find out how you can get a So LiteTM Scooter of your very own.

The So Lite Scooter TM

Exclusive Electronic Stability Control helps prevent tipping

85676

Call now Toll-Free

“We’re about the only people in our agencies who can directly engage with congressional staffers and committees without needing the agency’s permission to do so. It’s been said that we straddle a barbed-wire fence.”

NARFE MAGAZINE AUGUST 2022

agency’s permission to do so,” says Lerner. “It’s been said that we straddle a barbed-wire fence.” IG offices have an investigative side, staffed by special agents and law enforcement officials who conduct criminal, civil and administrative investigations into violations of laws, rules or regulations. The offices promote economy and efficiency through audits and evaluations in which auditors, analysts, evaluators and attorneys look at policies, procedures and internal controls to see if they are working as they are supposed to and helping agencies accomplish their missions. “A lot of issues have had to be worked out in the 40-plus years we’ve been in existence, mostly to ensure IG independence,” Lerner explains. “Over time, the biggest challenges IGs have faced in doing their work revolve around these independence issues. There was a real learning curve both within the IG community and the agencies on how to thread that needle.” She tells us that today, “IGs have their own ability to hire and to enter into contracts. They have their own budgets and their own SES [Senior Executive Service] system, if necessary. They have their own legal counsel and also have clear statutory authority to look at agency records.” All IG offices issue a variety of written reports, including audit, investigative, and inspection and evaluation reports prepared in accordance with professional standards; semiannual reports to Congress and agency heads describing the IG’s work within the reporting period; and immediate correspondence to agency heads to disclose egregious and flagrant problems or abuses. The agency head is required to transmit this reporting, along with any comments he or she may have, to Congress within seven days. CIGIE has consolidated all public IG reports from its members in one place on its www.oversight.gov website. “We use audits, inspections and evaluations as tools to assess how programs are working out and where risks exist,” says Lerner. “The Government Accountability Office has issued a guide, referred to as the ‘Yellow Book,’ that sets the standards for

conducting audits in the federal government, and our work has to comply with those standards.” CIGIE sets community-wide standards for inspections and evaluations. Every three years, an IG’s audit, investigative, and inspection and evaluation offices are peerreviewed by people outside their agency to ensure their work is being done properly. “In the past decade, we’ve seen a great deal of movement in the IG community towards using data analytics in our work,” Lerner says. “If you talk to IGs, they’ll tell you there’s more work that they want to do than they can ever possibly accomplish. Analyzing data allows us to focus our limited resources on the areas that are most important. “We’ve gone from people thinking of us as ‘junkyard dogs’ to being understood as very serious about our oversight responsibilities.”

What Federal Employees Should Know Moore’s work as director of VA’s IG hotline illuminates the principal mechanism by which federal employees, contractors and the general public can make IG offices aware of matters they believe the offices should investigate. “When I was there,” Moore recalls, “we might have gotten 30,000 to 40,000 calls, letters and electronic forms in a year. We had to decide which calls could or should be developed further. If we get a lot of complaints from the same area—about a specific medical center, cemetery or benefits office, or about problems with a specific kind of medication—then you obviously think you’ve got an issue here. “Almost all IG offices have hotlines people can use to provide information to them,” adds Lerner. “You can also submit information anonymously, and the IG Act requires inspectors general to protect the identity of people who come to them

to the maximum extent practicable. We take that responsibility extremely seriously. “Most IGs have a really good process for managing their hotline. And it’s essential that what comes in be examined carefully, because you never know what bombshell might find its way to you through the hotline,” says Lerner. Those interested in sharing information with an IG’s office can access their hotlines via www.oversight.gov (click the red button on the right side of the screen to find ways to report waste, fraud, abuse or retaliation). CIGIE also maintains a list of phone numbers, mailing addresses and hotline numbers for IGs at every agency on its website (www.ignet.gov). Finally, what if you are contacted and asked to speak with an IG investigator? In December 2021, the Office of Management and Budget sent out guidance requesting that agency leaders communicate with their staffs about the statutorily required expectation that all government employees fully cooperate with their IGs. “If people have questions about what they should do to prepare, they can ask the people who are asking to meet with them. The IG will share as much as [he or she] can ahead of the meeting,” explains Lerner. “In many cases, the most important thing to bring to the conversation is an open mind. “We know it’s unsettling when someone gets an email saying that we’d like to talk to you. But we are people, we don’t bite, and things should go well. Do you need an attorney when you meet with the OIG? In most cases, no. If you’re in doubt, that’s a conversation to have with the people who are arranging the meeting. There will be warnings given at the start of investigative interviews that make clear whether a person is obligated to cooperate and share information. Ask questions of the people who want to talk to you, and listen to the warnings. “The bottom line,” Lerner says, “is that we have an important job, and we’re trying to do it the best we can. Most of us recognize that the people we’re talking to have jobs they care about, and they’re trying to do their work, too. The more everyone can realize there’s just another person on the other end of the transaction, the more likely it is that both sides will get through the transaction in the best possible way.” —EVERETT A. (EV) CHASEN, IS A WRITER AND COMMUNICATIONS CONSULTANT IN THE WASHINGTON, DC, AREA. HE IS RETIRED FROM THE FEDERAL GOVERNMENT AFTER 35 YEARS OF SERVICE.

NARFE MAGAZINE www.NARFE.org

Managing Money

A Primer on the Thrift Savings Plan’s L Funds

he L Funds provide Thrift Savings Plan (TSP) participants with a simple “plug and play” option, which may be helpful for those who do not have the confidence or

desire to pick among the TSP’s individual investment funds. While the L Funds are straightforward in concept, I’ve come across many TSP participants who aren’t fully aware of how they work or how they should and shouldn’t be used.

The objective of the L Funds is to provide TSP participants with a diversified portfolio by investing in an optimal mix of the TSP’s five individual funds. According to the TSP’s website, “They [L Funds] were designed to let you invest your entire portfolio in a single L Fund and get the best expected return for the amount of expected risk that is appropriate for you.” While risk is subjective, “the amount of expected risk that is appropriate for you” is heavily centered on time horizon. According to TSP guidance, the target date of an L Fund should correspond closely with the first year a participant will begin withdrawals. The idea is that the greater the number of years before withdrawals begin, the more risk a participant is willing and able to accept. For those who are already taking withdrawals, or those who will begin doing so very soon, the TSP suggests the L Income Fund, which is the most conservative of the 10 L Funds. The remaining nine L Funds range from a target date

NARFE MAGAZINE AUGUST 2022

ACCORDING TO TSP GUIDANCE, THE TARGET DATE OF AN L FUND SHOULD CORRESPOND CLOSELY WITH THE FIRST YEAR A PARTICIPANT WILL BEGIN WITHDRAWALS. THE IDEA IS THAT THE GREATER THE NUMBER OF YEARS BEFORE WITHDRAWALS BEGIN, THE MORE RISK A PARTICIPANT IS WILLING AND ABLE TO ACCEPT.

of 2025 to 2065 in five-year increments. Given the relationship between time horizon and ability to accept risk, the L Funds are structured so that

the more time until the target date, the more aggressive the L Fund will be. In other words, the further out the target date, the more the L Fund will allocate to the riskier C, S and I stock funds. (For more information on the TSP’s individual funds, see my column in the January 2021 issue of NARFE Magazine.) For example, the L 2065 Fund (currently, the longest dated Lifecycle fund available) allocates 99 percent of its assets to the C, S and I funds, and only 1 percent to the G and F funds. The L 2025 Fund, on the other hand, allocates about 42 percent to the C, S, and I Funds, and about 58 percent to the G and F Funds. To manage the risk of the L Funds over time, the TSP automatically adjusts the target allocation of the L Funds every quarter. These quarterly reallocations aim to slowly shift the L Funds from the higher risk and reward investments (C, S and I Funds) to the lower risk and reward investments (G and F Funds). Bear in mind that while the objective of the L Funds is to provide a diversified portfolio with a turnkey approach to reducing expected risk as the target date approaches, the L Funds are not designed to prevent losses if or when the markets decline in value. Once the L Fund reaches its target date, it’s merged into the

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

L Income Fund. Unlike the other nine L Funds, the L Income Fund generally maintains the same target allocation over time; currently it allocates about 24 percent to the C, S and I Funds, and 76 percent to the G and F Funds. When investing in the L Funds, it’s unnecessary to use multiple L Funds. Many TSP participants mistakenly believe they are improving diversification when doing so, but this is not true. Unlike the TSP’s five individual funds, which provide exposure to a specific asset class (e.g., large U.S. companies, small U.S. companies, international companies and bonds), each L Fund invests in all five of the individual

funds (and only the five individual funds). By investing in multiple L Funds, participants are not gaining exposure to any additional investment funds or asset classes, they’re simply changing how much they have allocated to each individual fund (through the L Funds). Visit www.tsp.gov to learn more about the L Funds, including how they are currently allocated among the five individual funds. 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.

AMERICA’S NUMBER ONE STAIRLIFT. AN ACORN STAIRLIFT IS THE SAFEST WAY TO USE THE STAIRS FOR THOSE WITH:

ü Joint pain in the knees, feet or back ü Mobility or balance issues

ACCREDITED BUSINESS

SAVE $275.00*

S PR I N G SPECIAL OF F E R

Plus receive your FREE stairlift buying guide, info kit & DVD!

ü Breathlessness or fatigue ®

CALL TO SAVE!

A+

Rating

DON’T WAIT, CALL TODAY!

1-866-706-8534 *Not valid on previous purchases. Not valid with any other offers or discounts. Not valid on refurbished models. Only valid towards purchase of a NEW Acorn Stairlift directly from the manufacturer. $275 discount will be applied to new orders. Please mention this ad when calling. AZ ROC 278722, CA 942619, MN LC670698, OK 50110, OR CCB 198506, RI 88, WA ACORNSI894OB, WV WV049654, MA HIC169936, NJ 13VH07752300, PA PA101967, CT ELV 0425003-R5, AK 134057, HIC.0656293.

2020_02_NARFE_Apr_HHoriz.indd 1

2/12/20 9:51 AM

NARFE MAGAZINE www.NARFE.org

NARFE’S PREMIER NATIONAL CONFERENCE

AUGUST 21-23, 2022 Are you headed to Scottsdale for NARFE’s premier conference FEDCON22? If so, here are a few must-know pieces of information. HOTEL ARRANGEMENTS All conference activities will take place at the Westin Kirkland Resort & Spa, 6902 East Greenway Parkway Scottsdale, Arizona 85254. Phone: (480) 624-1000. Check-in time is 3 p.m. and check-out time is 12 p.m. NARFE Rate: Single/Double: $115.00 per night. *The deadline to reserve your hotel room is July 20, 2022. The hotel’s website is: https://www.marriott.com/en-us/hotels/phxws-the-westin-kierland-resort-andspa/overview/.

TRANSPORTATION It is a 25–30-minute drive from Phoenix Sky Harbor International Airport (PHX) to the Westin Kierland Resort & Spa. Rental cars are in a separate building and a Rental Car Shuttle makes regular stops at the baggage claim of each terminal. However, due to the COVID-19 pandemic, there is limited availability of rental cars. Taxis are available at Terminal 3: North curb, outside door # 7, and Terminal 4: Level 1, North curb, outside door # 7 and South curb, outside door #6. Ride-shares (UBER, Lyft, etc.) are available at Terminal #3 –between doors #2 and #4, Terminal #4 - Level 1, outside Door #1 and at Terminal #4 – Level 1, outside door #6 or #8. A taxi should cost $40-$50 and an UBER/Lyft should cost $30-$40. Visit www. https://www.skyharbor.com/ for more information about transportation services.

AREA ATTRACTIONS There are a variety of interesting and unique events is Scottsdale, including various activities in the Sonoran Desert, activities in Old Town Scottsdale and many museums like Scottsdale’s Museum of The West. You can learn more at https://www.experiencescottsdale.com/explore-arizona/.

DRESS CODE The dress code for the conference is business casual.

REGISTRATION All registrants must wear badges to all conference events. Pick up your badge at the registration desk. Registration hours for FEDcon22 are: Sunday, August 21, 2022 12:00 – 6:30 PM Monday, August 22, 2022 8:00 AM – 5:30 PM Tuesday, August 23, 2022 7:00 AM – 4:00 PM

You Won’t Want to Miss FEDCON22 Westin Kierland Resort and Spa | Scottsdale, AZ

FEDCON22 SPEAKERS TAMMY FLANAGAN, Federal benefits expert, counselor, NARFE Federal Benefits Institute presenter Over three decades of experience and her extensive knowledge of the federal benefits systems, engaging style and ability to explain difficult concepts in an easy-to-understand manner has made Tammy a highly sought-after speaker.

MARK KEEN, CFP®, Federal benefits expert, financial planner, NARFE Federal Benefits Institute presenter Mark has a gift for taking very complex financial topics and presenting them as bite-sized, actionable intelligence. Mark has been authoring the “Managing Money” column for NARFE Magazine for more than a decade.

JON BASSFORD, CAE, MBA, JD, Leadership and succession planning expert Jon has helped lead change as a successful association executive, consultant and entrepreneur. Jon’s message of dealing with, adapting to, and learning from his personal experiences to push for personal and organizational change and growth is one that will resonate with every audience.

PEGGY LAURITZEN, AG, FOGS, Accredited genealogist and lecturer Peggy has an amazing ability to bring laughter into the lives of her audience members while teaching them how to research family history. Peggy is a frequent lecturer and taught continuing education classes at community colleges and The Ohio State University.

MATT PAXTON, TV host and author Matt is one of the top downsizing, decluttering, and hoarding experts in the country. He now hosts the PBS show Legacy List, after having been featured on A&E’s Hoarders for 13 years. He appears regularly as a public speaker, TV and radio personality helping families find the upside of downsizing.

fedcon.narfe.org

NARFE News DELIVERY PROBLEMS?

Looking For Leaders— NARFE Needs You

his column often focuses on how to attract members and notes the challenges we face in growing membership, but NARFE faces another challenge

that’s equally serious—growing leaders. NARFE federations and chapters are run by volunteer officers who, after selflessly serving NARFE for many years, look to other members to step into these leadership roles. Unfortunately, many of them find that there are few who are willing or able to replace them. As Karin Hurt, founder and CEO of Let’s Grow Leaders, puts it, “Some of your volunteer organization’s best-qualified leaders are convinced they’re too busy to lead. And so the same dedicated generals continue to carry the load. They’re busy too, but feel stuck … they’ve invested too much to see it all fall apart.” So, how do we convince members to step up and lead NARFE through our next hundred years? We need to borrow a few concepts from the business world. Businesses work to hire the most talented employees, then identify and develop the ones with the attributes needed to lead the company to continued success. Obviously, it’s a bit different for volunteer organizations, but there’s one core principle we can apply to our situation: We need to attract “new blood.” We must actively engage younger members, especially those who are still in the workforce, getting them involved earlier in their membership and encouraging them to share ideas on how to

NARFE MAGAZINE AUGUST 2022

improve the NARFE experience for everyone. We can also make it easier for them to participate in leadership roles. Here are just a few suggestions from Hurt: CREATE BITE-SIZE ROLES. Consider breaking bigger jobs down into something a strong leader with an already booked life could imagine herself doing. LIMIT TERMS. It’s easy to rely on the same people to do the same thing year after year. Knowing there’s an exit strategy is attractive. Everyone saw how the last guy got stuck.

If you have missed an issue of NARFE Magazine, please contact our communications department at communications@narfe. org or call us toll free at 1-800-456-8410 and ask for communications. We will send out a replacement copy at no charge to you.

EMPOWER POSSIBILITY. Volunteer organizations have a habit of asking someone to “lead” and then telling them exactly how to do so. That will turn off your most creative volunteer leaders. Be willing to accept radical approaches and new ideas. COMMUNICATE OPPORTUNITIES. Cast a broader net. Communicate specific openings and opportunities to a large audience. ALLOW FAILURE. Criticism and gossip will turn away your best leaders forever. Encourage, develop and make it okay to experiment and fail forward. Some of this may seem easier said than done, but we owe it to all those who helped build NARFE to carry forth their legacy of service to our members and all federal employees and retirees. Bringing in new blood with fresh ideas helps make the organization healthier and keeps it relevant. It also brings greater satisfaction among all members—especially the leaders. Hurt says, “When people lead, they connect more deeply to your mission and to one another. Connection feels good. They stay.” —BY DAVE BOWMAN, SENIOR DIRECTOR, MEMBERSHIP DEVELOPMENT

Donate

to NARFE programs

Join the Silver Circle

Enclosed is my NARFE Silver Circle Contribution: $ ________

MAKE CHECK PAYABLE TO: NARFE (write Silver Circle on memo line)

Name: ___________________________________________________________

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

PLEASE MAIL COUPON AND CHECK TO: NARFE / 606 N. Washington St. / Alexandria, VA 22314 or donate online at www.narfe.org/ silvercircle With NARFE’s thanks, you will receive: • A Silver Circle pin and recognition on narfe.org with a donation of $100 or more. • A Silver Circle pin, your name plate placed on the Silver Circle plaque at NARFE Headquarters, recognition on narfe.org and recognition at the NARFE yearly conference with a donation of $1,000 or more.

Address: _________________________________________________________

Silver Circle contributions are NOT tax-deductible.

Name: (please print) _______________________________________________

City:_____________________________________________________________ State:______________________________ ZIP: _________________________

Credit Card Information: q M/C q VISA q Discover q AMEX Card Number: ____________________________________________________ Expiration Date: ______ (mm)/ _____ (yy)

Security Code: ______________

Signature: ___________________________________ Date: ____ / ___/____

Support Alzheimer’s Research NARFE members contributed for Alzheimer’s research: $15 Million Fund $14,589,385.76* *Total as of date. 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 OR EMAIL: oeashf3@gmail.com MAKE CHECK PAYABLE TO: NARFE-Alzheimer’s Research (write your chapter number on memo line)

Enclosed is my NARFE-Alzheimer’s contribution: $ ________ Every cent that is contributed is used for research. Name: ___________________________________________________________ Address: _________________________________________________________ City:_____________________________________________________________ State:______________________________ ZIP: _________________________ Chapter number: __________________________________________________

PLEASE MAIL COUPON AND CHECK TO: Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633

Credit Card Information: q M/C q VISA q Discover q AMEX

Your charitable contribution is tax-deductible to the fullest extent allowed by law.

Signature: ___________________________________ Date: ____ / ___ / ______

Give to the

NARFE-FEEA Fund MAKE CHECK PAYABLE TO: NARFE-FEEA Fund PLEASE MAIL COUPON AND CHECK TO: FEEA 1641 Prince St. Alexandria, VA 22314

Your charitable contribution is tax-deductible to the fullest extent allowed by law.

Card Number: ____________________________________________________ Expiration Date: ______ (mm)/ ____(yy)

Security Code: _______________

Name: (please print) _______________________________________________

The NARFE-FEEA Fund supports NARFE members during disasters; provides scholarships to their children, grandchildren and great-grandchildren; and funds other programs to support NARFE members at the direction of NARFE and FEEA. Enclosed is my NARFE-FEEA Fund Contribution: $ ________ Name: ___________________________________________________________ Address: _________________________________________________________ City:_____________________________________________________________ State:______________________________ ZIP: _________________________ Email: ___________________________________________________________

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

NARFE News

606 North Washington Street Alexandria, Virginia 22314-1914 www.narfe.org

ARFE’s 2023 Photo Contest brought in scores of wonderful photographs from NARFE members across America. Narrowing the selection from so many excellent photos down to 12 was especially challenging this year, but the result is a magnificent 2023 NARFE Calendar, which will be distributed during the NARFE fundraising effort this month. Here are the winning photographers and the titles of their photos. Congratulations to everyone. Proudly made in the U.S.A.

P219331

LIST OF 2022 PHOTO CONTEST WINNERS P219331-RFE-BACK COVER.indd 1

4/5/22 8:53 AM

January: “McHargue’s Mill in Snow” London, KY, by Rodney Hendrickson of London, KY, Chapter 1249. February (and Cover): “Visionary Leaders” Mount Rushmore, Black Hills, SD, by Phil Goldman of Delray Beach, FL, Chapter 1979. March: “Confidence in Power” by George Gootee of Bowling Green, KY. April: “Enjoying the Sunshine” by Linda Suchocki of Buffalo, NY, Chapter 0439. May: “Falls in Cherokee National Forest” by Kathy Nash of Maryville, TN. June: “In a Galaxy Far, Far Away” by Robert Delany of Louisville, KY, Chapter 0262. July: “Old but Not Forgotten,” Natural Bridge, VA, by Lisa Oakley of Chesterfield, VA, Chapter 2265. August: “Monarch Migration,” Upper Peninsula, MI, by Anne Okonek of Cornell, MI, Chapter 1900. September: “Nostalgic Icon Outside of Whitehouse, NJ” by Donald K. Uvick of Camp Hill, PA, Chapter 1465. October: “Autumn Harvest” by Andrée S. Neri of Columbia, MD, Chapter 1734. November: “Window to the Rockies,” Estes Park, CO, by Larry Trombello of Milford, DE, Chapter 1690. December: “Focus on Milky Way and Infinity” by Ken Atwood of Ridgecrest, CA.

JOIN US AT FEDCON22 TO DISCUSS HOW TO HELP LEAD NARFE IN ITS NEXT 100 YEARS FEDcon22 is coming up later this month in Scottsdale, AZ, and the program will feature a track where we’ll discuss why growing leaders within the organization is important and explore ideas for how to do so. Please consider joining us August 21-23 to discuss how we can work together to lead NARFE through another successful century. Call 800456-8410 or visit fedcon.narfe.org to learn more and to register. 48

NARFE MAGAZINE AUGUST 2022

MONDAY HOLIDAY ACT CORRECTION The June/July 2022 cover story of NARFE Magazine, “Juneteenth and the Establishment of Federal Holidays,” incorrectly noted that Veterans Day was one of the holidays affected by the Monday Holiday Act; Washington’s Birthday, Memorial Day and Labor Day were the holidays moved to Monday.

NARFE MAGAZINE www.NARFE.org

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

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

Who Should Join NARFE?

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

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

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

q Mr. q Mrs. q Miss q Ms.

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

______________________________________________

Full Name

______________________________________________

Street Address Apt./Unit

______________________________________________

City

State

ZIP

______________________________________________

Phone

______________________________________________

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

q Active Federal Employee Spouse

q Annuitant Spouse

q VISA

q Discover

q AMEX

___________________________________________ Card No. Expiration Date _____ /________ mm

______________________________________________

q Annuitant

PAYMENT OPTIONS

yyyy

___________________________________________ Name on Card ___________________________________________ Signature ___________________________________________ Date

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

q Survivor Annuitant

q Please enroll my spouse _________________________________________

Spouse’s Full Name

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

_________________________________________

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

THREE EASY WAYS TO JOIN

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

Spouse’s Email

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

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

___________________________________________ Recruiter’s Name ___________________________________________ Recruiter’s Membership ID NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties. (01/21)

Special Section

Consolidated Financial Statements for the Year Ended December 31, 2021 REPORT OF THE NATIONAL SECRETARY/TREASURER This is the third year our audit has been performed by MARCUM, and once again I am here to report to you on NARFE’s financial health. NARFE policy on investments remains very conservative. The association’s investment portfolio continues to be managed by Morgan Stanley with oversight by NARFE’s treasurer and the National Executive Board (NEB). NARFE ended fiscal year (FY) 2021 with an increase of almost $1,000,000 in investment earnings. As with investments, our board has a conservative approach to managing NARFE’s operating funds. We experienced slowed spending during the pandemic, mainly because no one was traveling. We continue to take a hard look at all financial transactions and overall management of the organization as staff helps us to adjust to a new normal. NARFE ended FY 2021 with a $299,211 surplus in operating funds—$51,911 more than FY 2020. As we determine further improvements related to the accountability of NARFE operations, we are aware that we owe gratitude to our staff and our members for their dedication and assistance. Thank you for your patience as we continue to transition NARFE into its second 100 years. —Kathryn E. Hensley

REPORT OF THE NATIONAL EXECUTIVE BOARD AUDIT COMMITTEE The National Executive Board (NEB) Audit Committee met virtually on April 25, 2022, with Gerry Ivanova and Vivian Shi of the audit firm Marcum Accountants & Advisors LLP, certified public accountants, to review the audit of NARFE’s finances for the calendar year that ended on December 31, 2021. The committee members taking part in the privately held review audit of NARFE finances were Region II Vice President Dr. Gary Roundtree Sr. (chair); Region VI Vice President Marshall Richards; Region IX Vice President Linda Silverio; National Secretary/Treasurer Kathryn Hensley; Interim Executive Director and Staff Vice President of Finance and Administration Johann De Castro; and Director of Budget and Finance Veronica Clemons. The auditors supplied a clear and comprehensive review of NARFE’s combined financial statements from 2020 and 2021. The auditors reported that there were no significant deficiencies, including material weaknesses, in design or operation of internal controls, including complementary user entity controls. The auditors have provided an unqualified opinion that the financial statements referred to are fairly presented in conformity with U.S. Generally Accepted Accounting Principles. The auditors reported findings in which no disagreements arose during the audit. The auditors covered some significant areas in their Management Letter, concerning NARFE-PAC, investment income, expense allocation, executive and board compensation, and investments. The audit confirmed an increase of $1,108,536 in net assets at the end of 2021. The auditors noted that NARFE’s financial situation continues to improve overall. Based on the report received from the audit firm, the NEB Audit Committee accepts the final audit. The committee acknowledges and applauds NARFE management and staff for all their due diligence and their contributions to this audit. —Gary Roundtree Sr., Chair

NARFE MAGAZINE www.NARFE.org

Independent Auditors’ Report To the National Executive Board of National Active and Retired Federal Employees Association and Affiliate Opinion We have audited the consolidated financial statements of National Active and Retired Federal Employees Association and Affiliate (collectively referred to as the Association), which comprise the consolidated statement of financial position as of December 31, 2021, and the related consolidated statements of activities, functional expenses and cash flows for the year then ended, and the related notes to the consolidated financial statements. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Association as of December 31, 2021, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Association and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Association’s ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of

NARFE MAGAZINE AUGUST 2022

assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Association’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Supplementary Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The consolidating supplementary information is presented for purposes of additional analysis of the consolidated financial statements, and is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used

to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.

an unmodified audit opinion on those audited consolidated financial statements in our report dated April 21, 2021. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2020, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.

Marcum LLP Other Matter Washington, DC Report on Summarized Comparative Information May 10, 2022 We have previously audited the Association’s 2020 NATIONAL ACTIVE AND RETIRED FEDERAL consolidated financial statements, and we expressed EMPLOYEES ASSOCIATION AND AFFILIATE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

National Active and Retired Federal Employees Association and Affiliate DECEMBER 2021 Consolidated Statement of Financial Position31,December 31, 2021 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2020) (With Summarized Financial Information for the Year Ended December 31, 2020)

National Active and Retired Federal Employees Association and Affiliate 2021 2020 Consolidated Statement of Financial Position ASSETS 31, 2017 (With Comparative Totals as of December 31, 2016 and 2015) December Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts of $2,000 Prepaid expenses Investments Property and equipment, net TOTAL ASSETS LIABILITIES AND NET ASSETS Liabilities Accounts payable and accrued liabilities Accrued vacation and payroll benefits Chapter dues payable Line of credit Deferred revenue

*changes to $14,055 on November 1, 2022, by membership vote

300,672 185,011 9,231,256 2,656,941

14,831,417

13,993,683

161,188 372,468 74,985 -3,802,655

328,577 394,352 69,163 300,000 3,590,006

TOTAL NET ASSETS

The salaries of the National Executive Board, as of December 31, 2021, are as follows (rounded): President: $129,581 Secretary/Treasurer: $115,849 Regional Vice Presidents: $28,110*

1,619,803

Net Assets Without donor restrictions With donor restrictions

Additional NARFE Financial Data

157,606 139,964 10,004,823 2,493,224

TOTAL LIABILITIES

TOTAL LIABILITIES AND NET ASSETS

2,035,800

4,411,296

4,682,098

9,142,594 1,277,527

8,095,453 1,216,132

10,420,121

9,311,585

14,831,417

13,993,683

In 2021, NARFE’s investments were held with these firms: •O perating Fund: Morgan Stanley and The Vanguard Group •L ife Membership Trust Fund: Morgan Stanley • Contingency Fund: Morgan Stanley • PAC Fund: Raymond James

NARFE MAGAZINE www.NARFE.org

The accompanying notes are an integral part of these consolidated financial statements.

NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE

National Active and Retired Federal Employees Association and Affiliate CONSOLIDATED STATEMENT OF ACTIVITIES Consolidated Statement of Activities for the Year Ended December 31, 2021 FORthe THE YEAR ENDED DECEMBER31, 31,2020) 2021 (With Comparative Totals for Year Ended December

(WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2020) Without Donor Restrictions

REVENUE AND SUPPORT Membership $ Contributions Investment income Advertising Royalties Conferences and meetings Other income Net assets released from restrictions: Satisfaction of program restrictions TOTAL REVENUE AND SUPPORT

5,044,408 1,696,113 745,812 1,240,787 355,113 191,050 26,652

With Donor Restrictions $

844,510

2021 Total

-905,905 ------

(844,510)

2020 Total

5,044,408 2,602,018 745,812 1,240,787 355,113 191,050 26,652

4,766,327 3,299,690 1,185,039 1,241,358 175,311 106,348 5,438

10,144,445

61,395

10,205,840

10,779,511

1,774,362 967,775 734,980 794,222 304,159 224,993

-------

1,774,362 967,775 734,980 794,222 304,159 224,993

1,858,375 621,369 1,019,052 673,811 267,745 148,326

4,800,491

4,588,678

2,664,557 1,091,927 540,329

----

2,664,557 1,091,927 540,329

3,269,299 913,561 550,799

4,296,813

4,733,659

9,097,304

9,322,337

CHANGE IN NET ASSETS

1,047,141

61,395

1,108,536

1,457,174

NET ASSETS, BEGINNING OF YEAR

8,095,453

1,216,132

9,311,585

7,854,411

EXPENSES Program Services: Communications Membership services Political Action Committee Legislative program Federal benefits program Conferences and meetings Total Program Services Supporting Services: General and administrative Membership recruitment Fundraising Total Supporting Services TOTAL EXPENSES

NET ASSETS, END OF YEAR

9,142,594

1,277,527

10,420,121

9,311,585

The accompanying notes are an integral part of these consolidated financial statements. 5

NARFE MAGAZINE AUGUST 2022

NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES National Active and Retired Federal Employees Association and AffiliateASSOCIATION AND AFFILIATE

Consolidated Statement of Functional Expenses for the Year Ended December 2021 CONSOLIDATED STATEMENT31, OF FUNCTIONAL EXPENSES (With Comparative Totals for the Year Ended December 31, 2020) FOR THE YEAR ENDED DECEMBER 31, 2021

(WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, Program Services

Communications

Salaries and benefits $ 633,909 Printing and postage 905,096 Contract services 102,876 Political contributions Professional fees 8,877 Advertising 989 ONAL ACTIVEOffice ANDexpenses RETIRED FEDERAL 26,970 Bank fees and AND taxes AFFILIATE 54,583 LOYEES ASSOCIATION Meetings and conferences 4,081 Depreciation and amortization 36,981

DATED STATEMENT OF FUNCTIONAL EXPENSES

TOTAL EXPENSES $ OR THE YEAR ENDED DECEMBER 31, 2021

1,774,362

Political Action Committee

Membership Services

777,456 2,442 26,272 1,413 17,905 77,975 11,482 52,830 967,775

NCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2020)

160,242 71,051 40,518 283 5,904 15,595 020) 10,566

Conferences and Meetings $

304,159 ing Services $

mbership ruitment

Total Program Services

Salaries - and benefits $ 2,124,794 Printing - and postage 1,067,721 Contract - services 200,199 Political - contributions 554,500 Advertising 5,496 157,441 Office 141expenses 3,674 92,009 Meetings and conferences 7,798 Professional fees 230,468 206,275 Bank fees and taxes232,327 5,283 137,358 Depreciation 224,993

Fundraising

TOTAL

$ EXPENSES 4,800,491 Total Supporting Services

268,677 153,802 77,789 101,000 427,500 13,635 44,241 5,283

- and benefits $ 1,968,167 Salaries - and postage303,013 Printing 527,107 services 689,652 Contract - contributions Political 380,398 Advertising 141 Office expenses 429,337 302,802 Meetings and conferences 7,798 Professional fees 145,610 Bank-fees and taxes 3,872 5,283 73,962 Depreciation

,091,927

540,329

TOTAL

$ EXPENSES 4,296,813

General and Communications Administrative

Membership Membership Services Recruitment

Federal Benefits Program

Legislative Program

111,281 554,500 416 31,441 27,732 9,610 734,980

553,187 48,902 102,134 848 9,789 46,785 879 31,698

794,222

160,242 71,051 40,518 283 5,904 15,595 10,566

Conferences and Meetings

Total Program Services

General and Administrative

M Re

$ 2,124,794 $ 1,699,490 $ 1,067,721 149,211 200,199 84,756 554,500 5,496 157,441 279,398 141 3,674 1,696 NATIONAL ACTIVE AND RETIRED FED 289,167 92,009 EMPLOYEES ASSOCIATION AND 7,798 230,468 93,571AFFIL 206,275 232,327 3,872 5,283 137,358 63,396 CONSOLIDATED STATEMENT OF FUNCTIONA

For the Year Ended December 31, 2019 (With Summarized Financial Information$for 2,664,557 the Year Ende 304,159 $ 224,993 $ 4,800,491 $ _______________

Program Services

Supporting Services

ederal enefits ogram

Suppo

Political Action Committee Fundraising

Total Legislative Supporting program Services

Federal

benefits 2021 program Total

Total Program Services

Conferences 2020 and meetings Total

444,239 1,699,490 1,112,571 149,211 244,320 84,756 -279,398 7,958 1,696 289,167 4,226 93,571 11,790 3,872 63,396 -

704,102 268,677 10,044 153,802 561,193 77,789 -101,000 15,242 427,500 13,635 44,241 -5,283 -

699,634 $ $4,092,961 228,046 $ 4,231,353 $ 108,282 $ 2,184,3 - $ $ 1,968,167 103,515 46,491 1,273,6 303,013 1,370,734 9 1,635,8691,001 8,454 26,528 850,4 527,107 689,652889,851 809,1619,997 NATIONAL ACTIVE AND RETIRED FED 616,000 616,0 - 554,500 820,224 EMPLOYEES ASSOCIATION AND AFFIL- 380,398537,839 520,470 22,147 20,976 6,487 15,484 88,2 433,011 366,140 141 429,337 OF FUNCTIONA 302,802 394,811 417,842 17,702 9,732 CONSOLIDATED 4,302 STATEMENT 155,502 191,4 For the Year Ended December 31,224,4 2019 7,798 145,610 376,078 270,215 674 113,304 96,529 2,188 (With Financial Information 3,872 236,199 59,386 - for the Year Ende 29,876 - Summarized 29,8 _______________ 5,28373,962211,320 191,677 -

2,664,557 1,825,104

$ $ 1,091,927 1,290,581

$ $

Services $ 540,329 798,368 $ Program $ 4,296,813 890,137

2021

Communications Total

Political Action Committee

Membership 2020 Services Total

$9,097,304 361,901 $ Federal benefits program

Legislative program

9,322,337 $ 292,454

5,458,5

Total Program Services

Conferences and meetings

4,092,961 444,239 1,370,734 1,112,571 889,851 244,320 554,500 537,839 433,011 7,958 394,811 4,226 376,078 11,790 236,199 211,320 -

$ $ 4,231,353 704,102 1,635,869 10,044 809,161 561,193 820,224 520,470 366,140 15,242 417,842 270,215 59,386 191,677 -

103,515 8,454 616,000 22,147 17,702 674 29,876 -

699,634 46,491 20,976 9,732 113,304 -

228,046 9 26,528 6,487 4,302 96,529 -

108,282 1,001 9,997 15,484 155,502 2,188 -

2,184,3 1,273,6 850,4 616,0 88,2 191,4 224,4 29,8 -

9,097,304 1,825,104

$ $ 9,322,337 1,290,581

798,368

890,137

361,901

292,454

5,458,5

NARFE MAGAZINE www.NARFE.org The accompanying notes are an integral part of these consolidated financial statements.

EMPLOYEES ASSOCIATION AND AFFILIATE CONSOLIDATED STATEMENT OF CASH FLOWS

National Active and Retired Federal Employees Association and FOR THE YEAR ENDED DECEMBER 31, Affiliate 2021 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED 31, 2020) Consolidated Statement of Cash Flows for the Year Ended December 31,DECEMBER 2021 (With Comparative Totals for the Year Ended December 31, 2020) CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization Net realized and unrealized gains Changes in assets and liabilities: Accounts receivable Prepaid expenses Accounts payable and accrued liabilities Accrued vacation and payroll benefits Chapter dues payable Deferred revenue

2021 $

NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment Purchases of investments Proceeds from sales of investments

1,108,536

1,457,174

211,320 (128,397)

191,677 (834,768)

143,066 45,047 (167,389) (21,884) 5,822 212,649

(143,174) 34,590 22,940 62,362 (21,990) (18,480)

1,408,770

750,331

(47,602) (1,181,121) 535,950

(114,910) (519,770) 190,373

(692,773)

(444,307)

NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Payment for line of credit NET CASH USED IN FINANCING ACTIVITIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

2020

(300,000)

415,997

306,024

1,619,803

1,313,779

CASH AND CASH EQUIVALENTS, END OF YEAR

2,035,800

1,619,803

SUPPLEMENTAL INFORMATION Interest paid Income taxes paid

$ $

5,187 128,673

$ $

11,561 26,498

The accompanying notes are an integral part of these consolidated financial statements.

National Active and Retired Federal Employees Association and Affiliate Notes to Consolidated Financial Statements December 31, 2021 facilitate local activities. In addition, federal benefits, communications there are 838 chapters affiliated and conferences. These activities are with NARFE that are located in the primarily funded by membership dues United States and some international and contributions and revenue derived Organization: National Active and locations. The chapters are established from advertising. Retired Federal Employees Association members to increasestatements. the scope and The accompanying notes are an (54) integral part of theseby consolidated financial There are fifty-four federations, (NARFE) was established in 1921 to effectiveness of NARFE. Chapter dues located in the United States, District of advance the general welfare of its more are established by the chapters and 7 are Columbia, Panama, Puerto Rico, and than 157,000 members and to aid them billed and collected by NARFE with the the Philippines, that are affiliated with in securing their rights under federal national dues. NARFE rebates to the NARFE and conduct local independent retirement laws. NARFE is incorporated programs. Ten percent of all eligible chapters one-third of the national fee under the laws of District of Columbia. charged for all new members joining member national dues collected are chapters. passed-through to these federations to Its programs include legislative,

NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NARFE MAGAZINE AUGUST 2022

The federations and chapters are independent and autonomous organizations. As NARFE has no economic interest in or control of federations and chapters affiliates, their financial activities are not included in the accompanying consolidated financial statements of NARFE. The federations’ bylaws must adhere to NARFE’s bylaws. NARFE has created a political action committee called NARFE PAC.

Basis of Accounting: These consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Consequently, revenue is recognized when earned and expenses are recognized when incurred. Principles of Consolidation: The accompanying financial statements as of and for the year ended December 31, 2021, of NARFE and its affiliate, NARFE PAC (collectively referred to as the Association) have been consolidated because they are under common control. All material intercompany balances and transactions have been eliminated on consolidation. Cash and Cash Equivalents: Cash and cash equivalents are composed of demand deposits and money market funds. Accounts Receivables: The Association uses the allowance method to record accounts receivable at their estimated net realizable value. The allowance for doubtful accounts is based on various factors, including management’s analysis of the collectibility of the accounts, historical write-off of expenses and current economic conditions. A provision for doubtful accounts is made when collection of the full amount is no longer probable. Investments: Investments consist of mutual funds, corporate bonds and exchange-traded funds. Investments are recorded in the accompanying consolidated financial statements at their fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability through an orderly transaction between market participants at the measurement date. Purchases and sales are reflected on a trade-date basis. Interest, dividends and realized gains or losses are recorded when earned. Changes in the

fair value of the portfolio are recorded as unrealized gains or losses.

Fair Value of Financial Instruments: In accordance with the accounting standards for fair value measurement for those assets and liabilities that are measured at fair value on a recurring basis, the Association has categorized its applicable assets and liabilities measured at fair value into a required fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level-input that is significant to the fair value measurement of the instrument. Applicable financial assets and liabilities are categorized on the basis of the inputs to the valuation techniques as follows: Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the client has the ability to access. Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. As of and for the year ended December 31, 2021, only the Association’s investments, as described in Note 2 to these consolidated financial statements, were measured at fair value on a recurring basis. Property and Equipment: All acquisitions of property and equipment greater than $1,500 and an economic life in excess of one year are capitalized at cost. Depreciation and amortization is computed by using the straight-line method based upon the estimated useful lives of the assets. Building and improvements are recorded at cost and depreciated using the straight-line method over their estimated useful lives of 20 to 40 years. Furniture, equipment and software are recorded

at cost and depreciated using the straight-line method over their estimated useful lives of three to eight years. Expenditures for major repairs and improvements that extend the useful life of an asset are capitalized, whereas expenditures for minor repairs and maintenance costs are expensed when incurred. The cost of property and equipment retired or disposed of is removed from the accounts along with the related accumulated depreciation, and any gain or loss is reflected in revenue and support or expenses in the accompanying consolidated statement of activities.

Classification of Net Assets: NARFE’s net assets are reported as follows: • Net assets without donor restrictions represent the portion of expendable funds that are available for any purpose in performing the primary objectives of the Association at the discretion of the Association’s management and the National Executive Board (the Board). From time to time, the Board designates a portion of these net assets for specific purposes, which makes them unavailable for use at management’s discretion. The Board has designated $2,000,000 of net assets without donor restrictions to serve as a working capital reserve to secure the Association’s long-term financial viability. Also included in board-designated net assets is the life membership fund in the amount of $1,565,380. • Net assets with donor restrictions represent funds that are specifically restricted by donors for use in various programs and/or for specific periods of time. These donor restrictions can be temporary in nature in that they will be met by actions of the Association or by the passage of time. Other donor restrictions are perpetual in nature, whereby the donor has stipulated that the funds be maintained in perpetuity. As of December 31, 2021, the Association had no net assets with donor restrictions that are required to be maintained in perpetuity. Revenue Recognition Membership Dues: Membership dues are on an anniversary-date basis and are recognized ratably over the membership period since there are no distinct performance obligations and the general member benefits are considered a bundled group of performance obligations that are delivered to members throughout the membership period.

NARFE MAGAZINE www.NARFE.org

Life membership dues are recognized as revenue over the duration of the life membership based on the collective average life expectancy for life members, according to life expectancy tables. Accordingly, dues paid by members in advance of the reporting period to which the dues pertain are reported as deferred revenue in the accompanying consolidated statement of financial position.

Advertising: Advertising revenue is recognized based upon when the advertisements are published, which is consistent with when the performance obligation is satisfied. Revenue from these activities received in advance of the period to which the revenue pertains is reported as deferred revenue in the accompanying consolidated statement of financial position.

Property, Plant and Equipment, the Association reviews its property for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If the fair value is less than the carrying amount of the asset, an impairment loss is recognized for the difference. As of December 31, 2021, the Association has not recognized an impairment loss.

Contributions: Unconditional Royalties: The Association Functional Allocation of contributions received are recorded receives various royalties from other Expenses: The costs of providing the as revenue with or without donor organizations. These royalties are various programs and other activities restrictions, depending on the existence primarily from membership benefits have been summarized on a functional and/or nature of any donor stipulations. offered to members of the Association. basis in the accompanying statement of Donor restricted contributions are The revenue is recognized when earned functional expenses. Expenses directly NATIONAL ACTIVE AND RETIRED FEDERAL reported as an increase in net assets according to contractual agreements attributed to a specific functional area with donor restrictions, depending EMPLOYEES ASSOCIATION AFFILIATE with eachAND organization. of the Association are reported as on the nature of the stipulation. expenses of those functional areas and Conferences and meetings: When a restriction expires (that is, NOTES TO CONSOLIDATED FINANCIAL STATEMENTS are charged directly to the programs Conferences and meetings revenue when a stipulated time restriction those items support. Shared costs such consists of registrations, event sales and ends or purpose of aFOR restriction is THE YEAR ENDED DECEMBER 31, 2021 as office expenses are allocated to the sponsorship fees and is recognized in accomplished), net assets with donor functional area and the programs pro the year in which the conference takes restrictions are reclassified to net assets rata based on estimated time and efforts place. Revenue from these activities without donor restrictions and reported NOTE 1 – NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES by employees. received in advance of the meeting is in the accompanying consolidated (CONTINUED) reported as deferred revenue in the statement of activities as net assets Estimates: The preparation of accompanying consolidated statement released from restrictions. ESTIMATES consolidated financial statements of financial position. in conformity with GAAP requires Investment Income: Realized preparation of and consolidated financialImpairment statements in conformity with GAAP requires management to make estimates and of Long-Lived and The unrealized gains losses and management to make affect certainwith reported assumptions that affect certain reported In accordance the amounts and Assets:that investment income (loss)estimates derivedand assumptions Accordingly, actual differ from those estimates. amounts and disclosures. Accordingly, provisions of Financial Accounting fromdisclosures. investment transactions areresults could actual results could differ from those Standards Board (FASB) Accounting included as income in the year earned. Standards Codification Topic 360, estimates. NOTE 2 – INVESTMENTS AND FAIR VALUE MEASUREMENT

The2: following table summarizes Association’s measured at fair value on a recurring NOTE INVESTMENTS ANDthe FAIR VALUE assets MEASUREMENTS

aggregated by type andthe fairAssociation’s value hierarchy levelmeasured within which those measurements The basis, following table summarizes assets at fair value on a recurring basis, aggregated by type and fair were made: level within which those measurements were made: value hierarchy

Total Fair Value

Quoted Prices in Active Markets for Other Assets/ Liabilities (Level 1)

Significant Observable Inputs (Level 2)

Unobservable Inputs (Level 3)

Mutual funds: Equity Fixed-income Corporate bonds Exchange-traded funds

$ 4,594,168 $ 4,594,168 $ 4,073,874 4,073,874 796,946 539,835 539,835

$ 796,946 -

Total Investments

$ 10,004,823 $ 9,207,877 $

796,946 $

ForFor the the yearyear ended December 31, 31, 2021, the Association usedused the the following methods andand significant assumptions to estimate fair ended December 2021, the Association following methods significant assumptions to estimate value for investments recorded at fair value: value for investments recorded at fairfair value:

Mutual funds and exchange-traded – of Value these is funds is on based on quoted Mutual funds and exchange-traded funds –funds Value theseoffunds based quoted market prices in active markets. market prices in active markets. Corporate bonds – bonds Valued– at fair value discounting the related cash flows basedbased on current yields of similar instruments with Corporate Valued at fairbyvalue by discounting the related cash flows on comparable characteristics. current yields of similar instruments with comparable characteristics.

NARFE MAGAZINE AUGUST 2022

NOTE 3 – PROPERTY AND AND RELATED DEPRECIATION FOREQUIPMENT THE YEAR ENDED DECEMBER 31, 2021 NOTE 3 – PROPERTY AND EQUIPMENT AND RELATED DEPRECIATION The Association held the following property and equipment as of December 31, 2021: The Association held the following property and equipment as of December 31, 2021: NOTE 3 – PROPERTY AND EQUIPMENT AND RELATED DEPRECIATION Land 3: PROPERTY AND EQUIPMENT AND RELATED DEPRECIATION $ 700,000 NOTE Land 700,000 Building and building 4,616,216 The Association held the theimprovements followingproperty property and equipment asDecember of December 31, 2021: The Association held following and equipment as of 31,$2021: Building and 4,616,216 Furniture and building computerimprovements equipment 2,066,192 Furniture and computer equipment 2,066,192 Land $ 7,382,408 700,000 Total Property and Equipment Building and building improvements 4,616,216 Total Property and Equipment 7,382,408 Less: Accumulated Depreciation (4,889,184) Furniture and computer equipment 2,066,192 Less: Accumulated Depreciation (4,889,184) Property and Equipment, Net $ 2,493,224 Total Property and Equipment 7,382,408 Property and Equipment, Net $ 2,493,224 Less: Accumulated Depreciation (4,889,184) Depreciation and amortization expense was $211,320 for the year ended December 31, 2021. Depreciation andEquipment, amortizationNet expense was $211,320 for the year ended December 31, 2021. Property and $ 2,493,224 NOTE 4 – NET ASSETS Depreciation andamortization amortization expense $211,320 for year the year ended December 31, 2021. Depreciation and expense waswas $211,320 for the ended December 31, 2021. NOTE 4 – NET ASSETS NET ASSETS WITHOUT DONOR RESTRICTIONS N4ET AET SSETS WITHOUT DONOR RESTRICTIONS NOTE –N SSETSASSETS NOTE 4:ANET As of December 31, 2021, the Association’s net assets without donor restrictions were Net Assets Without Donor As of December 31, 2021, the Restrictions Association’s net assets without donor restrictions were composed ofW the following: N ET ADecember SSETS ITHOUT DONOR RESTRICTIONS As of 31, 2021, the composed of the following: Association’s net assets without donor restrictions were composed of the following: $ 5,577,214 AsUndesignated of December 31, 2021, the Association’s net assets without donor restrictions were Undesignated $ 1,565,380 5,577,214 Board-designated life membership fund composed of the following: life membership 1,565,380 Board-designated operating reservefund 2,000,000 Board-designated operating reserve 2,000,000 Undesignated $ 9,142,594 5,577,214 Total Net Assets Without Donor Restrictions Board-designated life membership fund Total Net Assets Without Donor Restrictions $ 1,565,380 9,142,594 Board-designated reserve 2,000,000 NET ASSETS WITH Doperating ONOR RESTRICTIONS NET ASSETS ITH DDonor ONOR RESTRICTIONS Net Assets With Restrictions Total Net W Assets Without Donor Restrictions $ 9,142,594 NATIONAL ACTIVE AND RETIRED FEDERAL As of December 31, 2021, assets donor restrictions were available for the As of December 31, 2021, net net assetswith with donor restrictions were available for following the following purposes: As of December 31, 2021, net ASSOCIATION assets with donor restrictions were available for the following purposes: AND AFFILIATE NET ASSETSEMPLOYEES WITH DONOR RESTRICTIONS purposes: PAC –31, political contributions $ 1,238,397 NOTES TO CONSOLIDATED FINANCIAL AsNARFE of December 2021, net assets with donor restrictionsSTATEMENTS were available for the following NARFE PAC – political contributions $ 1,238,397 Alzheimer’s fund 39,130 purposes: Alzheimer’s fund 39,130 FOR THE YEAR ENDED DECEMBER 31, 2021 Total Net Assets With Donor Restrictions $ 1,277,527 NARFE PAC – political contributions $ 1,238,397 Total Net Assets With Donor Restrictions 1,277,527 Alzheimer’s fund 39,130 5: REVENUE FROM CONTRACTS WITH CUSTOMERS NOTENOTE 5 Total – REVENUE FROM C ONTRACTS WITH C USTOMERS Net Assets Donor Restrictions $ 1,277,527 deferred membership revenue for The following table With provides information about significant changes in the Association’s the ended table December 31, information 2021: Theyear following provides about significant changes in the Association’s deferred membership revenue for the year ended December 31, 2021: Deferred membership revenue, beginning of year Membership revenue recognized that was included in deferred membership revenue at the beginning of year Increase in deferred membership revenue due to cash received during the period Deferred Membership Revenue, End of Year

14 $ 3,443,276 14 (1,999,894) 14 2,251,600 $ 3,694,982

NOTE 6 – CONCENTRATION OF CREDIT RISK

NOTE 6: CONCENTRATION OF CREDIT RISK The Association maintains its cash and cash equivalents with a certain commercial financial

The Association its cashatand cashmay equivalents a certain commercial institution, which maintains aggregate balance, times, exceed thewith Federal Deposit Insurance financial institution, which aggregate at times, may exceed the Insurance Corporation Corporationbalance, (FDIC) insured limit of $250,000 perFederal depositorDeposit per institution. As of December (FDIC) insured limit of $250,000 per depositor per institution. December 2021,by the in approximately excess of the maximum limit insured by the 31, 2021, the amount in excess ofAs theof maximum limit31, insured theamount FDIC was FDIC was approximately $1,324,000. The Association monitors the creditworthiness $1,324,000. The Association monitors the creditworthiness of this institution and has not of this institution and has not experienced any losses on its and cash experienced anycredit credit losses oncash its cash and equivalents. cash equivalents.

7: OF LINE OF CREDIT NOTENOTE 7 – LINE CREDIT In June 2019, the Association obtained a line of credit with available borrowings of up to $500,000. The interest rate is based In June 2019, the Association obtained a line of credit with available borrowings of up to on the Bank prime rate plus 0.5% and was 3.75% as of December 31, 2021. The line of credit was secured by investments. The $500,000. The interest rate is based on the Bank prime rate plus 0.5% and was 3.75% as of line of credit paid offline on June 24, was 2021. December 31,was 2021. The of credit secured by investments. The line of credit was paid off on June 24, 2021. NOTE 8 – AVAILABILITY AND LIQUIDITY The Association regularly monitors liquidity required to meet its annual operating needs and other contractual commitments, while also striving to preserve the principal and return on the investment of its funds. The Association’s financial assets available within one year of the statement of financial position date for general expenditures at December 31, 2021, were as follows: Cash and cash equivalents Accounts receivable

$ 2,035,800 157,606

NARFE MAGAZINE www.NARFE.org

income. For the years ended December 31, 2021 no provision for federal or state income taxes was made, as there was no significant taxable income. The Association follows the authoritative guidance relating to accounting for uncertainty in income taxes included in FASB ASC Topic 740, Income Taxes. These provisions provide consistent guidance for the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribe a Cash and Cash Equivalents $ 2,035,800 threshold of “more likely than not” for recognition and Accounts Receivable 157,606 derecognition of tax positions taken or expected to be Investments 10,004,823 taken in a tax return. Total Financial Assets Available within One Year 12,198,229 The Association performed an evaluation of uncertainty in income taxes for the year ended December Less: 31, 2021, and determined that there were no matters that Amounts unavailable for general expenditures within would require recognition in the consolidated financial one year due to donor’s restriction with purpose statements or that may have an effect on its tax-exempt restriction (1,277,527) Financial Assets Available to Meet General status. As of December 31, 2021, there are no audits for Expenditures Within One Year $ 10,920,702 any tax periods that are currently pending or in progress. It is the Association’s policy to recognize interest and/or The Association has various sources of liquidity at penalties related to uncertainty in income taxes, if any, its disposal, including cash and cash equivalents in income tax or interest expense. As of December 31, and investments, which are available for general 2021, the Association had no accruals for interest and/or expenditures, liabilities and other obligations as they penalties. come due. Management is focused on sustaining the

NOTE 8: AVAILABILITY AND LIQUIDITY

The Association regularly monitors liquidity required to meet its annual operating needs and other contractual commitments, while also striving to preserve the principal and return on the investment of its funds. The Association’s financial assets available within one year of the statement of financial position date for general expenditures at December 31, 2021, were as follows:

financial liquidity of the Association throughout the year. This is done through monitoring and reviewing the Association’s cash flow needs on a regular basis. As a result, management is aware of the cyclical nature of the Association’s cash flow related to the Association’s various funding sources and is therefore able to ensure that there is cash available to meet current liquidity needs. As part of its liquidity plan, excess cash is invested in publicly traded investment vehicles, including mutual funds, or to support organizational initiatives. The Association can liquidate its investments anytime, and therefore the investments are available to meet current cash flow needs.

NOTE 11: – PRIOR YEAR SUMMARIZED FINANCIAL INFORMATION

NOTE 9: PENSION PLAN

NOTE 13 – SUBSEQUENT EVENTS

The Association has a Retirement Savings Plan (the Plan). Employees are eligible to participate in the Plan on the first day of the month coinciding with or next following the employee’s hire date. Employees become eligible for employer matching funds on the first day of the Plan Year (January 1) or the first day of the seventh month of the Plan Year (July 1) coinciding with or next following hire date. Once eligible, an employee is 100% vested. The Association matches 60% of each employee’s voluntary contribution up to 6% of annual compensation. Total contributions made by the Association were approximately $79,097 for the year ended December 31, 2021.

NOTE 10: INCOME TAXES

The Association is exempt from federal income taxes under Section 501(c)(5) of the Internal Revenue Code (IRC). However, income from certain activities not directly related to the Association’s tax-exempt purpose is subject to taxation as unrelated business income. The Association generates unrelated business income from advertising. The Association’s provision for unrelated business income tax expense was approximately $131,297 for the year ended December 31, 2021. NARFE PAC is subject to federal income taxes under IRC Section 527 with respect to certain investment

NARFE MAGAZINE AUGUST 2022

The accompanying financial statements include certain prior year summarized comparative information in total, but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with GAAP. Accordingly, such information should be read in conjunction with the Association’s financial statements for the year ended December 31, 2020, from which the summarized information was derived.

NOTE 12 – RECLASSIFICATION

Certain 2020 amounts have been reclassified to conform to the 2021 financial statements presentation.

The Association’s management has evaluated, for potential recognition or disclosure, events and transactions through May 10, 2022, the date the financial statements were available to be issued. There were no subsequent events identified that require recognition or disclosure in these consolidated financial statements.

NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE

Supplementary Information CONSOLIDATING SCHEDULE OF FINANCIAL POSITION Consolidating Schedule of Financial Position DECEMBER 31, 2021 December 31, 2021 ASSETS Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts of $2,000 Prepaid expenses Investments Property and equipment, net

Association $

1,180,829

NARFE PAC $

157,016 139,964 9,532,041 2,493,224

Eliminations

855,561

Total

(590)

590 -472,782 --

-----

2,035,800 157,606 139,964 10,004,823 2,493,224

13,503,074

1,328,933

(590)

14,831,417

LIABILITIES AND NET ASSETS Liabilities Accounts payable and accrued liabilities $ Accrued vacation and payroll benefits Chapter dues payable Deferred revenue

161,490 372,468 74,985 3,802,655

288 ----

(590) ----

161,188 372,468 74,985 3,802,655

TOTAL ASSETS

TOTAL LIABILITIES Net Assets Without donor restrictions With donor restrictions TOTAL NET ASSETS

4,411,598

288

(590)

9,052,346 39,130

90,248 1,238,397

---

9,142,594 1,277,527

9,091,476

1,328,645

10,420,121

TOTAL LIABILITIES AND NET ASSETS $ ACTIVE 13,503,074AND$RETIRED 1,328,933FEDERAL $ NATIONAL

(590)

4,411,296

14,831,417

EMPLOYEES ASSOCIATION AND AFFILIATE

Consolidating Schedule ofCONSOLIDATING Activities SCHEDULE OF ACTIVITIES FOR THE ENDED DECEMBER 31, 2021 for the Year Ended December 31,YEAR 2021 REVENUE AND SUPPORT Membership Contributions Investment income Advertising Royalties Conferences and meetings Administrative fee Other income

Association $

TOTAL REVENUE AND SUPPORT

5,044,408 1,699,675 727,542 1,240,787 355,113 191,050 103,851 26,652

NARFE PAC $

-902,343 18,270 ------

Eliminations $

------(103,851) --

Total $

5,044,408 2,602,018 745,812 1,240,787 355,113 191,050 -26,652

10,205,840

9,389,078

920,613

1,774,362 967,775 -794,222 304,159 224,993

--838,831 ----

4,065,511

838,831

2,664,557 1,091,927 540,329

----

2,664,557 1,091,927 540,329

Total Supporting Services

4,296,813

TOTAL EXPENSES

8,362,324

838,831

CHANGE IN NET ASSETS

1,026,754

81,782

1,108,536

NET ASSETS, BEGINNING OF YEAR

8,064,722

1,246,863

9,311,585

NET ASSETS, END OF YEAR

9,091,476

1,328,645

(103,851)

-1,774,362 See independent auditors' report. -967,775 (103,851) 734,98018 -794,222 -304,159 -224,993 4,800,491

(103,851)

9,097,304

10,420,121

NARFE MAGAZINE www.NARFE.org

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

PRODUCTS........................................................................................................................................... ADT Home Security | 844-892-3513 | https://Partners.ADT.com/SSE-P1

Get your ADT-monitored home security system today for $28.99 a month with AND $100 Visa reward card from Protect Your Home ADT Authorized Premier Provider. *New customers only. Visit website for full details of offer.

GE Appliances Store | Use the link below to start shopping!

Save with NARFE members-only access to the GE Appliances Store! You will enjoy up to 25% off MSRP every day on the latest in high-quality appliances. *Orders can not be shipped to P.O. boxes, APOS, Canada, Puerto Rico, HI, AK or U.S. Territories. https://www.myapstore.com/GEStore/Appliances/ Registration?AuthCode=MONARFE21

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

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

ODP Business Solutions | 1-800-650-1222 | www.officediscounts.org/narfe

(Previously Office Depot/Office Max)

NEW! Because you’re a member of NARFE, you now have access to exclusive members only discounts at ODP Business Solutions (previously Office Depot/Office Max). Members save up to 75% off on ODP Business Solutions Best Value list of preferred products and can take advantage of products discounted off the officedepot.com regular prices. Restrictions may apply so visit officediscounts.org/narfe for details. Product and service discounts may no longer be available for in-store purchases.

Purchasing Power | www.PurchasingPower.com/NARFE

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

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

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

Member Options | 833-378-8224 | https://www.member-options.com/narfe

Member Options Auto and Home Insurance Program - Save Money with Multiple Quotes! Get quotes from top-rated insurance carriers on Auto, Home, Renters, Pet insurance and more in a matter of minutes. Answer a few simple questions online or over the phone with our licensed insurance experts to compare multiple options that meet your specific needs. To review and choose what’s best for you, go to the link above or call 833-378-8224.

PRE-PLANNING................................................................................................................................... Neptune Society | 800-NEPTUNE (637-8863) | https://www.neptunesociety.com/NARFE

Our pre-arranged plans are designed to cover all necessary expenses for one guaranteed price even if the services are not needed for 40 or 50 years. The Neptune Society offers a $100 discount to all National Association of Retired Federal Employees members. Financing options are available. Call 1-800-NEPTUNE and mention your NARFE membership! For a detailed list of what our plans cover, visit our website our call us today. Discounted offer is not valid for residents of Tennessee and Kentucky. Void where prohibited.

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

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

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

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

TRAVEL, TRANSPORT & ENTERTAINMENT................................................................................... Choice Hotels International | 800-258-2847 | www.choicehotels.com

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

Collette Travel | 844-311-6563 | www.gocollette.com

With over 160 tours to all 7 continents and travel styles varying from small group to river cruising, Collette offers something for everyone. As a NARFE member, you receive an additional $50-$100 off all tours including sales and offers! Just use your member benefit code NARFESAVE or let our reservation agent know you are a NARFE Member when booking.

NEW!

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

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

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

Hotel Engine, a private booking platform, connects organizations and their members to deeply discounted hotel rates.

Member Deals | https://memberdeals.com/narfe/?login=1

MemberDeals is your one stop for great discounts on nationwide travel and entertainment! Find exclusive discounts, special offers, preferred seating, and tickets to top attractions, theme parks, shows, sporting events, hotels, and much more. Visit MemberDeals and find savings such as up to 40% on top theme parks nationwide and preferred access tickets to your favorite concerts, sports & more!

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

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

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

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

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

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

ADDITIONAL PERKS................................................................................................................................

SEE HOW MUCH YOU CAN SAVE AT

www.NARFE.ORG/memberperks

The Way We Worked

Supporting Historical Research This 1954 photo shows Marion Tinling, staff member at the National Historical Publications Commission, transcribing shorthand notes of the First Federal Congress made by Thomas Lloyd, a stenographer and the publisher of the Congressional Register. The National Historical Publications Commission was created as part of the National Archives in 1934 to promote the publication of documents that tell the nation’s history. In 1974 it evolved into the National Historical Publications and Records Commission, acknowledging its duty to preserve and publish original records through grants and other forms of assistance. As of today, the NHPRC has given more than 5,100 grants totaling $270 million. PHOTO from the records of the 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. 64

NARFE MAGAZINE AUGUST 2022

DID YOU KNOW? The Declaration of Independence, the Constitution and the Bill of Rights, known collectively as the Charters of Freedom, have secured the rights of the American people for more than two and a quarter centuries and are considered instrumental to the founding and philosophy of the United States. Visit www.archives.gov/ founding-docs

5 Great Reasons

Why Oticon MoreTM could be the answer to your hearing problems.

1 Oticon More with Brain HearingTM technology

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

Connectivity made easy

Never change a battery again

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

A trouble-free rechargeable solution allows you to recharge at night for a full day of hearing. FREE charger included!1

The hearing aid with built-in intelligence

Take advantage of your $2500 benefit

Works more like how the brain works because it learned through experience. Clinical studies prove Oticon More delivers 30% more sound to the brain and increases speech understanding.2

Exclusive pricing for NARFE members. Your insurance may cover all or part of the cost. Call for more information.3

This special offer for federal employees and retirees is available only at Your Hearing Network locations. To find your location call

877-696-5335

Lithium-ion battery performance varies depending on hearing loss, lifestyle and streaming behavior. 2Compared to Oticon Opn STM, Santurette, et al. 2020. Oticon More clinical evidence. Oticon Whitepaper. 3Your out-of-pocket costs may vary depending on plan benefits, eligibility, deductible, co-insurance, and model of device chosen. This is not a guarantee of coverage or payment. Benefit is not available through all insurance plans. Please call us to verify your coverage. 1

Members,

Pay $0

out-of-pocket! Blue Cross and Blue Shield Service Benefit Plan members may be eligible for two fully covered hearing aids with zero out-of-pocket cost on many models when applying your hearing aid benefit*. HearUSA offers all these features and follows all safety protocols for our customers and employees. Call 1-855-252-0025 to discover more or visit www.blue365deals.com/hearusa. EXPERIENCE - HearUSA has been changing lives through better hearing since 1987 and a proud NARFE Circle Sponsor since 2016. CHOICE - All major hearing aid brands and styles available, including completely-in-the-canal, the smallest custom hearing aids on the market. TECHNOLOGY - Smart technology helps you hear more clearly and eliminates annoying feedback “whistling”. RECHARGABLE - Most models have rechargeable options; no need to ever replace batteries! Plus, many models connect with your cell phone! TELEHEALTH - Take advantage of HearUSA Telehealth Services where you obtain quality care at home. Telehealth appointments are available.

Three-year manufacturer’s warranty covers repairs Three-year loss and damage coverage provides peace of mind One-year of FREE batteries eliminates an extra expense One year of FREE in-office service will get you off to a great start!

Call 1-855-252-0025 to schedule a FREE in-person or telehealth hearing appointment today! *The Service Benefit Plan will pay a hearing aid benefit for Standard and Basic Option up to $2,500 total every 5 calendar years for adults age 22 and over, and up to $2,500 total per calendar year for members up to age 22. FEP Blue Focus does not have a hearing aid benefit. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in the Blue Cross and Blue Shield Service Benefit Plan brochure. Blue365® offers access to savings on health and wellness products and services that members may purchase from independent vendors, which are not covered benefits under the Blue Cross and Blue Shield Federal Employee Program, Blue Cross Blue Shield FEP Dental and/or Blue Cross Blue Shield FEP Vision. These products and services will be offered to you through the entire benefit year. During the year, the independent vendors may offer additional discounts on these products and services. To find out what is covered under your policy, contact the customer service number on your member ID card. Any disputes regarding your health insurance products and services may be subject to your plan’s grievance process. BCBSA may receive payments from vendors providing products and services on or accessible through the Site. Neither BCBSA nor any Blue Company recommends, endorses, warrants, or guarantees any specific vendor, product or service available under or through the Blue365 Program or Site.

August 2022 NARFE Magazine

Articles inside

Managing Money

The Way We Worked

NARFE News

Bill Tracker

Countdown to COLA

Questions & Answers

OPM Releases Results of 2021 Federal Employee Survey

NARFE Online

From the President

Legislative Roundup

NARFE Urges Appropriations Subcommittees to Seek Answers From OPM Retirement Services