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
WILLIAM SHACKELFORD President; natpres@narfe.org
KATHRYN E. HENSLEY Secretary/Treasurer; natsectreas@narfe.org
TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER: CALL (TOLL-FREE) 800-456-8410 OR GO TO www.narfe.org
TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:
CALL (TOLL-FREE) 800-456-8410 EMAIL memberrecords@narfe.org OR GO TO www.narfe.org, log in and click on “My Account”
TO REACH A FEDERAL BENEFITS SPECIALIST: 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
REGIONAL VICE PRESIDENTS
REGION I Jeff Anliker (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont)
Tel: 413-813-8136
Email: jeff.anliker@outlook.com
REGION II Larry Walton (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 443-831-1791
Email: rvp2@narfe.org
REGION III Lynn Harper (Alabama, Florida, Georgia, Mississippi, South Carolina and Puerto Rico) Tel: 478-951-3260
Email: lynn_harper@msn.com
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
REGION VI Marshall L. Richards (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-660-2784
Email: pappysdad@cobridge.tv
REGION VII Sharon Reese (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 575-649-6035
Email: rvp7@narfe.org
REGION VIII Robert H. Ruskamp (California, Hawaii, Nevada and Republic of Philippines) Tel: 703-628-3234
Email: ruskampr@gmail.com
REGION IX Steven Roy (Alaska, Idaho, Montana, Oregon and Washington) Tel: 425-344-3926
Email: stevenroy1@yahoo.com
REGION X Robert Allen (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 757-404-3880
If you’re retired and haven’t switched your plan, contact us to find out more about two Aetna® plans designed for Federal retirees.
Health insurance plans are offered and/or underwritten by Aetna Life Insurance Company (Aetna). This is a brief description of the features of this Aetna health insurance plan. Before making a decision, please read the plan’s applicable federal brochure(s). All benefits are subject to the definitions, limitations and exclusions set forth in the federal brochure. Plan features and availability may vary by location and are subject to change. Aetna does not provide care or guarantee access to health services. For more information about Aetna plans, refer to AetnaFeds.com/retireeplans
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.
NARFE Stays Very Busy in August
FEDCON24
In 2008, I planned to attend my first NARFE National Convention in Louisville, KY. Fast-forward 16 years, and I am looking forward to welcoming everyone to NARFE’s premier biennial national training conference, FEDcon24, in St. Louis. I know you may have heard this before. FEDcon24 is poised to be a pivotal moment in NARFE’s history. Our planning efforts, which have been in the works since our last conference, are designed to resonate with both returning attendees and those joining us for the first time. This is not an event to be missed.
The conference will kick off with opening keynote speaker Alex Sheen, founder of the global nonprofit because I said I would. Alex will set the tone for our conference with a message that coincides with the FEDcon24 theme LEARN–ADVOCATE–LEAD. It will be a perfect kick-off to an event that will focus on providing NARFE leaders with training, resources and information to energize all members to gain the knowledge necessary to LEARN how to make the most of your benefits, ADVOCATE to protect those earned benefits, and LEAD the organization that defends those benefits into the future.
MEMBERSHIP MARKETING
FEDcon24 should also serve as the “kick-off” of our membership marketing initiative. Everyone knows that NARFE’s biggest challenge has been, and remains, brand name recognition, followed by its value proposition within the federal community. As such, NARFE has not been successful in addressing our 38-year decline in membership. The time to act is now.
Membership loss can be attributed to various factors, including competition, changing consumer preferences, and ineffective or nonexistent marketing strategies. To address the brand awareness issue, we have initiated a full-scale national marketing plan. In association with professionals knowledgeable of the federal workforce, all stakeholders, federations, chapters, and the headquarters staff, the plan will focus on identifying potential new members. The overall goal is to improve NARFE’s brand within the federal community, making it a household name.
GRASSROOTS ADVOCACY
During August, NARFE members usually have the opportunity to see their members of Congress and senators during the congressional recess. Many lawmakers hold town hall-style meetings in their districts or states to hear from their constituents; NARFE members can use this opportunity to let their elected representatives know what is essential to them.
As always, I appreciate your support so we can move NARFE forward together. The future of NARFE is in our hands. I hope we can accomplish what we can to ensure its viability. Stay healthy and stay safe!
WILLIAM SHACKELFORD NARFE NATIONAL PRESIDENT natpres@narfe.org
1 The Service Benefit Plan may pay a hearing aid benefit for Basic and Standard Option of up to $2,500 total, with prior approval, every 5 calendar years for adults age 22 and up to $2,500 total per calendar year for members up to age 22.
2 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 $75 for the exam, and the member may need to submit a claim for reimbursement.
3 Smartphone-compatible hearing aids connect directly to iPhone®, iPad®, and iPod® Touch devices. Some TruHearing models connect to Android® phones directly. Connectivity also available to many Android phones with use of an accessory.
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,
SAVE MONEY ON 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 With News That Matters to You
Want 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.
MISS A WEBINAR?
Catch up on past NARFE Federal Benefits Institute presentations in our webinar archive. There, you’ll find videos, slides and Q&A sessions for webinars dating back to January 2019. View them at www. narfe.org/webinar-archives.
CONNECT ON FEDHUB
If you haven’t visited NARFE’s growing online community yet, now is the time to join the conversation, and start one too!
NARFE designed FEDHub to support your federal journey, leveraging the knowledge and value of our entire community— all that’s missing is you. Start talking with fellow feds at fedhub.narfe.org/ quick-start-guide.
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.
TRACKING RETIREMENT CLAIMS
Find out how many retirement claims OPM Retirement Services receives and processes each month, with average processing times and total inventory at www.narfe.org/opm-processing.
IHouse and Senate Hold Hearings on WEP and GPO
n April and June, subcommittees in the House and Senate held hearings to examine the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), marking new progress in addressing these longstanding provisions unfairly penalizing public servants nationwide.
HOUSE HOLDS SECOND HEARING ON WEP/GPO
The House Ways and Means Subcommittee on Social Security held a hearing on April 16, the second time Congress held a hearing focused on these issues. With 320 cosponsors for the bill (at press time) to repeal WEP and GPO in the House and continued committee attention, momentum is building to address these longstanding issues.
While the hearing featured think tank witnesses rather than representatives from those directly impacted, NARFE National President William “Bill” Shackelford and National Secretary/Treasurer Kathryn Hensley attended the hearing in person, demonstrating steadfast support for the repeal of WEP and GPO. Shackelford submitted testimony for the record on
behalf of NARFE, and NARFE continues to work with the lead sponsors of the repeal bill and other allies to press for further action on WEP and GPO.
The hearing focused on the significant and longstanding effects WEP/GPO have on federal retirees, citing many examples of disproportionately
affecting public servants who experience undue hardships from these provisions, which unfairly reduce the retirement benefits they have paid into for years.
The hearing included testimony from several witnesses who acknowledged how these provisions harm public servants, identifying how the outdated formulas used to calculate the WEP and GPO create unfair outcomes for beneficiaries affected by one or both policies. Witnesses and committee members also discussed solutions that
AUGUST ACTION ALERT: SUPPORT THE SOCIAL SECURITY FAIRNESS ACT, H.R. 82, MARK-UP BY THE HOUSE WAYS AND MEANS COMMITTEE
Visit NARFE’s Legislative Action Center at www.narfe.org to send a message to your lawmakers requesting they push the House Ways and Means Committee to advance the Social Security Fairness Act, H.R. 82, with a favorable recommendation, to the floor! With 320 cosponsors and counting at press time, this bill is closer to achieving legislative progress in repealing the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)−two longstanding provisions that unfairly reduce the retirement benefits of hardworking public servants.
advocated for more modest reforms rather than a full repeal.
Hundreds of NARFE members also added their voices by submitting written testimony, helping to strengthen the call for change.
SENATE HEARING FOCUSES ON LOCAL IMPACT
The Senate Subcommittee on Social Security, Pensions, and Family Policy held its own field hearing on the topic, focusing on its impact in Ohio.
Sen. Sherrod Brown, D-OH, sponsors S. 597, the Social
MYTH VS. REALITY
MYTH: When lawmakers are out of session, they are not focused on legislative issues, so advocacy efforts will have little impact.
REALITY: Even though lawmakers are not in Washington, D.C., when they are in “recess,” they remain engaged with legislative issues during these state and district work periods and are often looking to gather constituent feedback. This time away from the Capitol allows them to hear directly from their constituents in their localities and gather insights that can inform their positions and actions when they return to session.
Security Fairness Act, and chairs the subcommittee.
NARFE also submitted a statement for the record for this hearing.
BIPARTISAN HOUSE
CAUCUS ENDORSES BILL
In another sign of building momentum, the bipartisan Problem Solvers Caucus announced its endorsement of H.R. 82, the Social Security Fairness Act, which is the House bill to repeal WEP and GPO. The Problem Solvers Caucus, co-chaired
by Reps. Brian Fitzpatrick, R-PA, and Josh Gottheimer, D-NJ, has 62 members evenly split between Republicans and Democrats. Both hearings and the bipartisan House caucus endorsement represent significant steps in ongoing advocacy efforts by NARFE and its allies to correct the injustices of the WEP and GPO and ensure that all public servants receive the full Social Security benefits they rightfully deserve.
—BY JOHN HATTON, STAFF VICE PRESIDENT, POLICY AND PROGRAMS
OPM Regulation on Postal Service Health Benefits Program Confirms Medicare Rules
The Office of Personnel Management issued its final rule on establishing the Postal Service Health Benefits (PSHB) Program on May 6, 2024. The PSHB program starts in January 2025, with this year’s Open Season providing the first preview of PSHB plans.
The rule offered clarifications on Medicare Part B and other language. While the rule reiterated statutory provisions requiring newly eligible annuitants (retiring after January 1, 2025) who are entitled to Medicare Part A to enroll in Medicare Part B and
maintain PSHB coverage, it also made clear the exceptions NARFE advocated for in the debate over bill passage:
• Anyone who is a postal annuitant on or before January 1, 2025, and is both not entitled to Medicare Part A and not enrolled in Medicare Part B on that date;
• Anyone who is a postal employee and is 64 or older on January 1, 2025;
• Postal annuitants and their families who reside outside of the United States and its territories and demonstrate such residency;
• Postal annuitants and their families who are already enrolled in some Veterans Affairs Department health coverage plans;
• Postal annuitants and their families who are eligible for Indian Health Service benefits; and
• Anyone who is a relative of a postal annuitant and is not required to enroll in Medicare Part B to be eligible for PSHB benefits based on one of the statutory exceptions noted above.
—BY NICOLE BLACKSTONE, PROGRAM MANAGER, FEDERAL BENEFITS INSTITUTE
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
House Hearing Examines OPM Operations
On May 22, 2024, the House Committee on Oversight and Accountability held a hearing reviewing U.S. Office of Personnel Management (OPM) operations, featuring new acting Director Rob Shriver. NARFE National President William “Bill” Shackelford submitted a statement for the record expressing NARFE’s views.
The hearing, titled “Oversight of Our Nation’s Largest Employer: Reviewing the U.S. Office of Personnel Management, Pt. II,” focused on various issues, including federal telework policies, the threat of Schedule F, and federal retirement annuity processing. Some committee members questioned the strength of current data supporting telework policies. Shriver discussed improvements in initial retirement claims processing and wait times for
prospective and current federal annuitants.
Shriver also pointed out that these increased office requirements are detrimental to personnel improvement, saying, “If we were to require cybersecurity professionals to come into the office five days a week, I think we wouldn’t be able to recruit the kind of workforce that we need.”
These comments came weeks after the introduction of legislation that would require federal workers to spend 60% of their hours in their offices (sponsored by Sens. Mitt Romney, R-UT, and Joe Manchin, D-W) and a bill introduced in April that would require agencies collect telework data and increase monitoring on the impact of teleworking on performance metrics (sponsored by Sens. Gary Peters, D-MI, and Joni Ernst, R-IA).
Shriver defended the administration’s efforts to protect the merit-based civil service via its recently issued rule on the topic, intended to prevent a return of Schedule F. Committee Democrats expressed support for the rule—and legislation to prevent a future administration from reversing it. However, committee Republicans supported Schedule F, arguing it would add necessary accountability measures for federal workers, whom they view as abusing their power to thwart legal administration policies.
In NARFE’s view, existing rules and regulations or much more modest reforms would address such concerns without eliminating the merit-based civil service, as Schedule F threatens to do for a substantial segment of it.
—BY NICOLE BLACKSTONE, PROGRAM MANAGER, FEDERAL BENEFITS INSTITUTE
Lawmakers Support Cuts to Federal Benefits
The Republican Study Committee, led by Rep. Kevin Hern, R-OK, unveiled its fiscal 2025 budget plan on March 25, titled “Fiscal Sanity to Save America.” The proposal intends to balance the budget within seven years by slashing $17.1 trillion in spending. It would accomplish this by significantly reducing federal workers’ retirement and health care benefits while eliminating the president’s
authority to provide annual pay raises to federal employees. Additionally, their proposed budget recommends reducing or even outright removing the cost-of-living adjustments (COLAs) for Federal Employee Retirement System (FERS) and Civil Service Retirement System (CSRS) annuitants and computing retirement benefits based on the highest five years of salary rather than the highest three.
Their plan proposes drastically increasing the share of employee contributions to FERS, eliminating the FERS annuity supplement, and reducing the rate of return on the Thrift Savings Plan’s G fund to near zero. If that was not enough, the proposal also calls for using the chained Consumer Price Index to calculate COLAs for federal annuities and Social Security benefits while requiring federal
employees and retirees to pay a more significant share of health benefit premiums.
Amid the ambitious financial restructuring lies a contentious narrative regarding the future landscape of federal employment. Implicit within the proposal is a tolerance for federal workers earning less than their private-sector counterparts,
accompanied by potential erosion of hard-earned benefits—a vision starkly opposed by NARFE.
NARFE’s opposition underscores broader concerns about the plan’s potential ramifications, not only for individual employees but also for the stability and functionality of the federal workforce. Such measures
contravene core tenets of federal service and imperil the vital functions of government agencies, spanning from national defense to agricultural oversight. NARFE asserts a resolute stance against what will be an undue sacrifice of federal employees in the name of fiscal responsibility.
—BY RANDALL THACKER, MANAGER, POLITICAL AND LEGISLATIVE AFFAIRS
OPM Issues Final Rule to Safeguard Merit Principles
The Office of Personnel Management (OPM) has officially finalized a rule to protect career civil servants from the potential reemergence of Schedule F, an initiative from the Trump administration that sought to convert a substantial
portion of federal positions into at-will positions.
Published in the Federal Register on April 4, 2024, this regulation would solidify protections for 2.2 million federal employees. Thus, it would make it significantly more difficult for any future
CONTRIBUTE TO
Monthly contributors of $10 or more receive a sustainer lapel pin
OR Contribute monthly through your annuity or by credit card. Get started at narfe.org/pac-sustainer
Make a one-time contribution:
q $25 – Basic lapel pin
q $50 – Bronze lapel pin
q $100 – Silver lapel pin
q $250 – Gold lapel pin
q $500 – Platinum lapel pin
q Other: _________
Contribution totals are cumulative for the 2023-2024 election cycle
n No pin for me. I’d like 100 percent of my contribution to go
administration to reintroduce policies such as Schedule F. This final rule directly responds to concerns raised about the Trump-era executive order that created Schedule F, leading to a significant potential upheaval
NARFE Member #:
Name:
Address: City:
State: ZIP:
Occupation:
Employer:
q Charge my credit card
q MasterCard q VISA q Discover q AMEX
Card #:
Exp. Date: _____ /_________
Name on Card:
Signature:
Date:
To comply with federal law, we must use our best efforts to obtain, maintain and submit the name, mailing address, occupation and name of employer of individuals whose contributions exceed $200 each calendar year. NARFE-PAC is for the benefit of political candidates and activities on a national level. NARFE members have the right to refuse to contribute without reprisal, and NARFE will neither favor nor disadvantage anyone based on the amount of a contribution or failure to make a voluntary contribution. The suggested amounts are only suggestions and not enforceable. Only members of NARFE may contribute to the PAC. Contributions from non-members will be returned. NARFE-PAC contributions are not deductible for federal income tax purposes.
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
DOL Finalizes Rule to Protect Retirement Savings
The U.S. Department of Labor (DOL) announced the finalization of its Retirement Security Rule on April 23, 2024. The rule is designed to enhance protections for millions of Americans saving for retirement. The update redefines what constitutes an investment advice fiduciary under the Employee Retirement Income Security Act and the Internal Revenue Code.
The rule mandates that financial advisers act with the highest standards of care and loyalty. It also requires their advice to be relevant and free from conflicts of interest that could adversely affect retirement savers. Under the new rule, which
takes effect on September 23, 2024, financial institutions must implement stringent policies to manage conflicts of interest and ensure their advisers comply with these new standards.
This is a step forward in ensuring that all Americans are not subjected to advice that will jeopardize their retirement security. According to a recent analysis by the Council of Economic Advisers, bad advice from conflicted financial advisers on products like fixedindex annuities could cost savers up to $5 billion per year, significantly impacting longterm savings.
NARFE has joined other organizations in supporting
the DOL’s efforts through a letter to Congress highlighting the rule’s importance in safeguarding the financial security of federal retirees. The letter underscores the rule’s potential to prevent financial advisers from prioritizing their financial gain over retirees’ best interests. Thus, it would help retirees maintain more of their hard-earned savings for a secure and independent retirement.
NARFE applauds the DOL for taking this action to protect our retirees and prevent bad actors from exploiting hard-earned savings.
—BY RANDALL THACKER, MANAGER, POLITICAL AND LEGISLATIVE AFFAIRS
within the federal workforce. By rescinding this order, President Joseph Biden has emphasized the importance of a meritbased, nonpartisan civil service system. The regulation clarifies and reinforces longstanding protections, ensuring that civil service principles cannot be bypassed on executive whim.
NARFE National President William “Bill” Shackelford has played a crucial role in supporting OPM’s dedication to maintaining the integrity of the civil service.
“NARFE applauds OPM’s commitment to upholding merit-based nonpartisan civil
service and welcomes this final rule, which clarifies and reinforces long-standing protections for our public servants,” he said.
This regulation comes during an election year in which attempts to revive Schedule F policies have been discussed. It prohibits involuntary moves from the competitive service to the excepted service from stripping employees of their civil service protections. It also establishes an appeals process for affected employees with the Merit Systems Protection Board.
In November 2023, NARFE submitted a letter in support of the proposed rule, emphasizing
the necessity for OPM to finalize these protections.
“While OPM’s actions are a step in the right direction, a rule alone cannot prevent a return of Schedule F in the future,” the letter states. “It’s up to Congress to pass legislation like the Saving the Civil Service Act to more fully protect the nonpartisanship of the civil service.”
This marks a substantial victory in safeguarding the stability and impartiality of the civil service, reinforcing the foundation for effective governance.
—BY RANDALL THACKER, MANAGER, POLITICAL AND LEGISLATIVE AFFAIRS
KEY INITIATIVES
NARFE BILL TRACKER
THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO LEGISLATION NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE
H.R.159/S.59: Chance to Compete Act of 2023 / Rep. Virginia Foxx, R-NC / Sen. Kyrsten Sinema, I-AZ
Cosponsors:
H.R. 159: 3 (D) 2 (R) S. 59: 1 (D) 2 (R) 0 (I)
H.R. 1002/S. 399: Saving the Civil Service Act / Rep. Gerry Connolly, D-VA / Sen. Tim Kaine, D-VA
Cosponsors:
H.R. 1002: 27 (D) 4 (R)
S. 399: 16 (D) 0 (R) 1 (I)
FEDERAL PERSONNEL POLICY
H.R. 1487: The Strengthening the Office of Personnel Management Reform Act / Rep. Gerry Connolly, D-VA
Cosponsors: H.R. 1487: 1 (D) 0 (R)
H.R. 3115/S. 1496: Public Service Reform Act / Rep. Chip Roy, R-TX / Sen. Rick Scott, R-FL
H.R. 7236: Reducing the Effects of the Cyberattack on OPM Victims Emergency Response Act, or the RECOVER Act / Delegate Eleanor Holmes Norton, D-DC-at Large and Rep. Dutch Ruppersberger, D-MD
Cosponsors: H.R. 7236: 1 (D) 0 (R)
H.R. 5779: Fiscal Commission Act of 2023 / Rep. Bill Huizenga, R-MI
S. 3262: The Fiscal Stability Act / Sen. Joe Manchin, D-WV
Cosponsors:
H.R. 5779: 12 (D) 12 (R)
S. 3262: 3 (D) 5 (R) 1 (I)
Implements merit-based reforms to the civil service hiring system that replace degree-based hiring with skills- and competency-based hiring.
Prevents any position in the federal competitive service, created after September 30, 2020, from being reclassified into the excepted service, outside the protection of merit system rules without the express consent of Congress. The bill also requires the consent of an employee to be reclassified, mandates reporting of conversions to the Office of Personnel Management, and places caps on the number of employees converted to the excepted service via Schedule C.
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.
Would make all federal employees at-will and enable workers to be removed for good cause, bad cause or no cause at all. The legislation would also abolish the Merit System Protections Board and limit removal appeals to claims of whistleblower retaliation and Equal Employment Opportunity Commission complaints before the US Court of Appeals.
Provides free lifetime identity protection coverage to current, former and prospective federal employees and contractors whose personal information was compromised by Office of Personnel Management (OPM) data breaches in 2015.
To establish a commission on fiscal stability and reform.
Passed the House under suspension of the rules 1/24/2023
Referred to the Senate Committee on Homeland Security and Governmental Affairs 1/24/2023
Referred to the House Committee on Oversight and Accountability 2/15/2023
Referred to the Senate Committee on Homeland Security and Governmental Affairs 2/14/2023
Referred to the House Committee on Oversight and Accountability 3/9/2023
Referred to the House Committee on Oversight and Accountability 5/5/2023
Referred to the Senate Committee on Homeland Security and Governmental Affairs 5/9/2023
Referred to the House Committee on Oversight and Accountability 2/5/24
Ordered to be reported in the nature of a substitute by the yeas and nays 22-12 1/18/24
Referred to Senate Committee on Rules and Administration 1/8/24
NARFE BILL TRACKER
THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO LEGISLATION NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES.
H.R. 82/S. 597: The Social Security Fairness Act / Rep. Garret Graves, R-LA / Sen. Sherrod Brown, D-OH
Cosponsors:
H.R. 82: 204 (D) 106 (R)
S. 597: 41 (D) 9 (R) 3 (I)
H.R. 4260: The Public Servants Protection and Fairness Act / Rep. Richard Neal, D-MA
Cosponsors:
H.R. 4260: 102 (D) 0 (R)
SOCIAL SECURITY
Repeals both the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).
The House Committee on Ways and Means held Field Hearing on 11/21/2023
Referred to the Senate Committee on Finance 3/1/2023
FEDERAL ANNUITIES
H.R. 4583/S. 2280: Social Security 2100 Act / Rep. John Larson, D-CT / Sen. Richard Blumenthal, D-CT
H.R. 5342: Equal Treatment of Public Servants Act of 2023 / Rep. Jodey Arrington, R-TX
Cosponsors:
H.R. 5342: 1 (D) 30 (R)
H.R. 716: The Fair COLA for Seniors Act / Rep. John Garamendi, D-CA
Cosponsors: H.R. 716: 37 (D) 0 (R)
H.R. 866 / S. 3194: The Equal COLA Act / Rep. Gerry Connolly, D-VA / Sen. Alex Padilla, D-CA
Cosponsors:
H.R. 866: 47 (D) 3 (R) S. 3194: 6 (D) 0 (R) 2 (I)
S. 3974: Boosting Benefits and COLAs for Seniors Act / Sen. Bob Casey (D-PA)
Cosponsors: S. 3974: 5 (D) 0 (R)
Reforms the Windfall Elimination Provision (WEP) by providing a monthly rebate of $150 to current beneficiaries (age 62 or older before 2025) and creating a new formula to calculate benefits for future WEP-affected individuals (turning 62 in or after 2025).
Expands and strengthens Social Security benefits, improves solvency of the Social Security trust funds, repeals the Windfall Elimination Provisions and Government Pension Offset, and provides numerous other Social Security related improvements.
Reforms the WEP by providing a monthly payment of $100 to current WEP-affected beneficiaries and $50 for an affected spouse or child. Creates a new formula to calculate benefits for future WEPaffected individuals (turning 62 in or after 2025).
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.
Provides Federal Employees Retirement System (FERS) retirees with the same annual cost-of-living adjustment (COLA) as Civil Service Retirement System (CSRS) retirees.
Significantly adjust the calculation of COLA by basing it off of the Consumer Prive Index for Americans aged 62 or older (CPI-E) instead of the Consumer Price Index for Urban Wage Earners (CPI-W) to better reflect rising living expenses faced by the aging community
Referred to the House Committee on Ways and Means 6/21/2023
Referred to the Committee on Energy and Commerce, and Subcommittee on Health 7/14/23
Referred to the Senate Committee on Finance 7/12/2023
Referred to the House Committee on Ways and Means 9/5/2023
Referred to the Committee on Veteran’s Affairs, and the Subcommittee on Disability Assistance and Memorial Affairs 2/28/23
Referred to the Senate Committee on Homeland Security and Governmental Affairs 11/1/23
Read twice and referred to the Committee on Finance 03/19/2024
NARFE BILL TRACKER
THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO LEGISLATION NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES.
H.R. 536/ S. 124: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerry Connolly, D-VA / Sen. Brian Schatz, D-HI
Cosponsors:
H.R. 536: 77 (D) 1 (R) S. 124: 19 (D) 0 (R) 1 (I)
H.R. 856/ S. 274: Comprehensive Paid Leave for Federal Employees Act / Rep. Don Beyer, D-VA / Sen Brian Schatz, D-HI
Cosponsors:
H.R. 856: 40 (D) 3 (R) S.274: 10 (D) 0 (R) 1 (I)
H.R. 1301/ S. 640: Federal Employees Civil Relief Act / Rep. Derek Kilmer, D-WA / Sen. Brian Schatz, D-HI
Cosponsors:
H.R. 1301: 3 (D) 0 (R)
S. 640 15 (D) 0 (R) 1 (I)
FEDERAL COMPENSATION
H.R. 5883 / S. 3029: Honoring Civil Servants Killed in the Line of Duty Act of 2023 / Rep. Gerald Connolly, D-VA / Sen. Kyrsten Sinema, I-AZ
Cosponsors:
H.R. 5883: 1 (D) 2 (R)
S. 3029: 1 (D) 2 (R) 0 (I)
H.R. 5995: The Federal Retirement Fairness Act / Rep. Derek Kilmer (D-WA)
Cosponsors:
H.R. 5995: 65 (D) 22 (R)
Provides federal employees with an 8.7% average pay raise in 2024.
Referred to the House Committee on Oversight and Accountability 1/26/2023
Referred to the Senate Committee on Homeland Security and Governmental Affairs 1/26/2023
H.R. 7127: Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerry Connolly (D-VA) / Sen. Brian Schatz (D-HI )
Cosponsors:
H.R. 7127: 80 (D) 0 (R)
Extends paid leave to federal and postal employees for all conditions covered by the Family and Medical Leave Act (FMLA).
Referred to the House Committee on Oversight and Accountability, Veteran’s Affairs and House Administration 2/7/2023
Referred to the Senate Committee on Homeland Security and Governmental Affairs 2/7/2023
Protects federal workers and contractors from a variety of civil financial penalties during a lapse in appropriations or a breach of the debt ceiling.
Aims to significantly increase death gratuities and funeral allowances for federal employees who tragically lose their lives while serving the nation. This bill would ensure that the families of dedicated civil servants receive greater financial support during their time of loss.
Allow federal employees who started their careers as temporary workers, but transitioned to permanent work, to buy credit towards retirement for their temporary work. The FRFA enables these workers to make catch-up contributions, ensuring they receive full retirement credit for their service.
Provides federal employees with a 7.4% average pay raise in 2025
Referred to the House Committees on Oversight and Accountability, Financial Services, Ways and Means, Judiciary, Education and Workforce, and House Administration 3/1/2023
Referred to the Senate Committee on Finance 3/2/2023
Referred to the House Committee on Veteran’s Affairs, and the Subcommittee on Health 11/9/23
Placed on Senate Legislative Calendar under General Orders. Calendar No. 385 05/09/2024
Referred to House Committee on Oversight and Accountability 10/25/23
Referred to House Committee on Oversight and Accountability 1/30/2024
Become a Silver Circle Contributor Today
NARFE offers members a way to give to the association’s General Fund through its donor recognition program, the Silver Circle.
Your contribution to the Silver Circle supports the direct work of NARFE as we continue to provide you resources and advocacy that you rely on and that member dues alone cannot support. When you donate to the Silver Circle, you are ensuring that NARFE has the resources to continue to fight for the financial security and earned benefits for you and the federal community.
NARFE appreciates all financial support you provide to us and would like to recognize you for your generous contributions to our cause. Donate now to the Silver Circle at 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.
To learn more about the Silver Circle donor recognition program or how to recommend an outstanding NARFE member to the Silver Circle, please visit www.narfe.org/silvercircle or email us at donatenow@narfe.org
Enclosed is my NARFE donation: $ q Mr. q Mrs. q Miss q Ms.
Member Number:
PLEASE MAIL COUPON AND CHECK TO: NARFE, Attn: Silver Circle, 606 N. Washington St., Alexandria, VA 22314 Donations to NARFE are not tax-deductible for federal income tax purposes.
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.
CHOOSING A COMMENCING DATE FOR A FERS DEFERRED RETIREMENT
QI separated federal service at mid-career before reaching my Federal Employees Retirement System (FERS) minimum retirement age of 57.
Although I was vested with more than five years of federal civilian service under FERS, I did not qualify for immediate retirement upon separation. Since I do not expect to return to a federal job, when will I be eligible to apply for my deferred retirement, and what date should I choose for the retirement benefit to begin?
AThe answer to your question depends upon how many years of creditable service you have. If you have less than 10 but more than five years of civilian federal employment covered by FERS deductions, your deferred retirement is payable at age 62.
Choosing a commencing date for your retirement benefit can be a little complex if you’ve paid into FERS for more than 10 years and separated federal service before reaching your FERS minimum retirement age (MRA). The instructions accompanying the RI 92-19 application will guide you through this process, which involves selecting a “commencing date” for your retirement benefit and using Schedule C of the application. Carefully follow the instructions provided with the application. It’s crucial to understand the age reduction calculation if you have 10 years or more service, but less than 20 years. You have the flexibility to choose when your annuity begins, giving you control over your retirement planning. It can start on the first day of any month following the month in which you reach your FERS MRA up through the second day before
your 62nd birthday (but not after reaching age 62). Just remember, there is a reduction for your age that is computed as one-twelfth of 5% for each full month, or 5% per year, that you are younger than 62 when your FERS retirement begins.
If you have 20 years or more service but less than 30, you can choose to have your annuity begin on the first day of any month following the month you reach your FERS MRA up through the first day of the month after your 60th birthday. If you choose to have your annuity start sooner than 60, the permanent age reduction will apply based on how many months you are younger than 62. It’s important to consider this reduction when planning your retirement.
If you have 30 or more years of service, you can have your unreduced FERS Basic Retirement Benefit commence on the first day of the month after you reach your FERS MRA. Your FERS MRA is based on your year of birth.
Important Notes:
1. The applicant must file RI Form 92-19, “Application for Deferred or Responsibility
Postponed Retirement,” with OPM at least 60 days before age 62 or the date that you want the annuity to begin, if earlier. The application may be obtained at www.opm.gov/forms. Follow the instructions to guide you through this process, which involves selecting a “commencing date” for your retirement benefit and using Schedule C of the application. The decision is important and should be made with careful consideration of your personal circumstances and financial needs.
2. When a former employee with 10 or more years of service applies for a deferred annuity, they designate a commencing annuity date explained above. The designated commencing date must be:
a. The first day of the month after you reach your MRA or
b. The first day of the month is at least 31 days after OPM receives your application if you have reached your MRA (but before your 62nd birthday).
c. A date (must be the first day of a month) within 90 days after the application is filed but
d. No later than the second day before the employee’s 62nd birthday.
An election of a commencing date becomes irrevocable on the day OPM authorizes the first regular annuity payment.
CHOOSING A COMMENCING DATE FOR A FERS POSTPONED RETIREMENT
QAfter 21 years of working for the federal government with regular FERS coverage, I decided to separate from the federal service upon reaching my minimum retirement age of 57 to pursue other opportunities. Although I was eligible to apply for my retirement immediately upon separation, I postponed my application to avoid the permanent age reduction as I was under age 62 with less than 30 years of service. Since I do not expect to return to a federal job, when will I be eligible to apply for my unreduced retirement?
AAs an employee with 20 years of FERS retirement coverage, you will become eligible for an unreduced “postponed” FERS Basic Retirement Benefit upon age 60
According to the FERS “Application for Deferred or Postponed Retirement” (RI 92-19), OPM recommends that you send your application to them approximately 60 days (but no later than 31 days) before you want your benefit to begin. The instructions accompanying the RI 92-19 application will ask you to select a “commencing date” for your retirement benefit to begin using Schedule B of the application.
By separating from federal employment after reaching your MRA and having 10 or more years of
service (but less than 30 years), you were eligible for retirement immediately upon separation. Still, the benefit would be reduced by one-twelfth of 5% per month if you were under age 62 at separation or 5% per year.
To reinstate Federal Employees Health Benefits (FEHB) and Federal Employees Group Life Insurance (FEGLI), you must have been covered for the five years immediately preceding your separation if you wish to reinstate one or both benefits. This “five-year test” does not apply to the reinstatement of FEDVIP supplemental dental and vision coverage. OPM will send you information to reinstate these insurance benefits once they determine your eligibility.
Since you have paid into FERS for over 20 years, you can avoid the permanent age reduction penalty by simply choosing the first day of the month after your 60th birthday as your commencing date.
If you have completed more than 10 years, but less than 20, your commencing date of your FERS annuity must be at least 2 days before your 62nd birthday. If you choose a date after your 62nd birthday, this is considered a “deferred” retirement and you will not be allowed to reinstate your insurance benefits or receive credit for your unused sick leave in the computation of your FERS benefit.
Important Notes:
1. An election of a commencing date should be filed approximately 60 days before the designated
COUNTDOWN TO COLA
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.1% in May 2024. To calculate the 2025 cost-of-living adjustment (COLA), the 2024 third-quarter indices will be averaged and compared with the 2023 third-quarter average of 301.236. The percentage increase determines the COLA. May’s index, 308.163, is up 2.29% from the base.
The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services.
For FECA COLA updates, visit narfe.org and search for FECA.
Questions &
commencing date; OPM recommends applying 60 days ahead of your desired commencement date.
2. You must use form RI 92-19 (Application for Deferred or Postponed Annuity) available at www. opm.gov/forms
3. You may not elect a postponed commencing date that is earlier than the 31st day after the date the application is filed.
4. An election of a commencing date becomes irrevocable on the day OPM authorizes the first regular annuity payment.
Tips for employees who separate with eligibility for a deferred or postponed FERS Basic Retirement Benefit:
• Use tracking when mailing anything to OPM to ensure OPM receives your application on time.
• Before you separate from federal employment, obtain copies of your federal employment and any changes in retirement coverage or work schedule (found on your SF 50 “Notification of Personnel Action” forms).
• Also keep copies of your beneficiary designation for FERS and TSP, as well as copies of FEHB and FEGLI changes made before you separated.
• If you have military service, then you must make a military service credit deposit before you separate from government service if you want to receive credit for this time in your deferred retirement.
• Review the RI 92-19 application before separation while you have access to your HR specialist, who can ensure you understand how to complete it.
• Request a deferred or postponed retirement estimate before leaving federal service so that you know how much your benefit is estimated to be.
RETIREMENT
OPTING OUT OF THE MEDICARE PRESCRIPTION DRUG PROGRAM
QMy FEHB plan automatically enrolled me into the Medicare Prescription Drug Program (MPDP) on January 1, 2024. My income will require me to pay higher than the standard premium for Medicare Part B due to the Income Related Monthly Adjustment Amount (IRMAA). I have the option to opt out, and since I don’t spend much out of pocket on my medications, I decided to opt out of the MPDP for now. Will I have to opt out of the MPDP each open season, or will my previous election to opt out remain in effect for each year moving forward?
AIf you have opted out of the MPDP with your current FEHB health plan, we understand that your current plan will not automatically reenroll you back into the MPDP each year. Since you have opted out of the MPDP, your current prescription coverage will revert to your FEHB plan’s original pharmacy benefit that you
would have had before enrollment in the MPDP. Under current law, each open season, you will have an opportunity to reenroll back into the MPDP without penalty for late enrollment. During any future open season or qualifying life event, if you decide to switch to a different FEHB plan, you may again be subject to automatic enrollment into the MPDP of the new FEHB plan. If you are not interested in maintaining this benefit, you may opt out of the Part D coverage again.
BENEFITS OF THE MEDICARE PRESCRIPTION DRUG PROGRAM
QWhy would I need Medicare Part D or Medicare Prescription Drug Coverage if my FEHB plan already has adequate drug benefits?
AA few reasons to consider maintaining Part D coverage through your FEHB plan include lower cost-sharing compared to your plan’s original FEHB drug benefit and a cap on out-of-pocket drug costs of $2,000. This starts in 2025 on all Part D plans (some FEHB plans offer this limit in 2024).
Suppose you are enrolled in a Medicare Advantage (Medicare Part C) plan through your FEHB program provider. In that case, you must be enrolled in Medicare Parts A & B, and you will generally be automatically enrolled in Part D. In these plans, you must remain covered under the Medicare drug plan.
Two potential disadvantages of Medicare Part D coverage include the fact that manufacturer discounts are not currently available to those with coverage under Medicare Part D. However, the Centers for Medicare and Medicaid Services (CMS) is phasing in the manufacturer discount program for certain drugs of qualifying drug manufacturers over the next several years.
Although FEHB plans offer MPDP coverage at no additional charge, you will pay a surcharge if your income exceeds a certain amount. Those affected by this surcharge may consider opting out of Part D if their Modified Adjusted Gross Income (MAGI) on their 2022 tax return was $103,000 or higher if they are a single filer or $206,000 or higher if they file a joint return (these are the amounts for 2024).
Weigh the surcharge against the benefits of this coverage if you fill expensive prescriptions with high copays.
SWITCHING FEHB PLANS
Q
I’m finding that my current FEHB plan no longer meets my needs. Do I have to wait for the next open season before I can make a change?
A The answer to your question depends on what kind of change you want to make. Annuitants can change FEHB plans every year during the annual open
season. However, some situations allow annuitants to switch FEHB plans outside the yearly open season. You may make changes outside the Open Season based on qualifying life events (QLE). If you want to keep the same plan but change from family to self-plusone or self-only coverage, or if you want to change from self-plus-one to self-only coverage, you can do that at any time. You should contact OPM for assistance with this, and they can make the change in coverage effective the first of the month following your election.
If you have moved out of the geographic area where your current health plan allows enrollments, you may change plans using the QLE for this event. Another QLE allows changing FEHB plans outside of Open Season when you reach age 65. This QLE can only be used once in a lifetime. Other examples of QLEs that allow you to switch plans mid-year would include changes in family status such as marriage, birth or death of a family member, adoption, or divorce. With a QLE, you would typically contact OPM within the period beginning 31 days before but no later than 60 days after the event date to make the change.
If you are eligible for TRICARE or TRICAREfor-Life coverage, you also can suspend FEHB
coverage for such coverage any month of the year. If you choose to suspend FEHB to use TRICARE or any other reason eligible for suspended coverage, use form RI 79-9, “Health Benefits Suspension / Cancellation Confirmation” here: https://www.opm. gov/forms/pdf_fill/ri79-9.pdf
If you ever suspend FEHB coverage, you will typically have to wait for a future open season to reenroll into an FEHB plan.
Refer to OPM Form 2809 for a list of QLEs for annuitants, survivor annuitants, former spouses under spouse equity provisions, and temporary continuation for eligible former spouses and children. Forms can be found at www.opm.gov/forms. OPM Pamphlet 79-2, “Information for Retirees and Survivor Annuitants (FEHB),” is available at https://www.opm.gov/ retirement-center/publications-forms.
You may call OPM at 1-888-767-6738 and speak with a customer service specialist for assistance.
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.
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*. Call 1-855-252-0025 to discover more or visit www.blue365deals.com/fep.
Members have access to the latest hearing aid models, styles and technology, including the New Signia Styletto IX.
Understanding the Rules for Divorce
If you have been through a divorce, you know what an emotional process it is to finalize the settlement. As a federal employee or retiree, you may want to understand how a divorce might affect your federal benefits in the event it ever happens to you.
Divorce in the United States falls under the authority of state governments. However, current and retired federal employees need to be aware that federal laws governing the division of their benefits in a divorce can sometimes conflict with state laws. In these cases, federal law will prevail.
A court order can:
• Divide a Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) retirement benefit
• Split a refund of employee retirement contributions
• Provide a survivor annuity upon the death of an employee or retiree
• Allow a former spouse to continue coverage under the spouse equity provisions of the Federal Employee Health Benefits (FEHB) law
• Require an employee to cover their children under FEHB
• Require assignment of life insurance under Federal Employees Group Life Insurance (FEGLI)
• Require an employee to name their former spouse or children as beneficiaries of FEGLI In addition, benefits may be garnished for alimony, child support, or child abuse cases. When someone under CSRS or FERS divorces, a court order is required to specifically spell out the division of any CSRS, FERS, or Thrift Savings Plan (TSP) benefits.
Providing retirement or survivor benefits to a former spouse also includes entitlement to spouse equity coverage under the FEHB program.
If the court order is silent regarding federal retirement and insurance benefits, then the former spouse would not be entitled to CSRS or FERS retirement or survivor benefits, health benefits, assignment of life insurance, or any division of the proceeds of a TSP account. The court order must be written using specific language and following federal guidelines to be acceptable for processing these
Court Order Acceptable for Processing (COAP) even if the retiree and the former spouse agree that they want OPM to pay an amount different from the amount specified in the court order. A
Qualified Domestic Relations Order (QDRO) plays a crucial role in dividing assets like 401(k) and 403(b) plans, among others, but is not used or accepted to divide CSRS, FERS, or TSP benefits. Federal retirement benefits are exempt from the Employee Retirement Income Security Act (ERISA), which applies to privatesector plans.
A federal employee or retiree may assign FEGLI coverage to comply with a court order to ensure that the former spouse remains the coverage beneficiary. If a court orders a federal employee or
CURRENT AND RETIRED FEDERAL EMPLOYEES NEED TO BE AWARE THAT FEDERAL LAWS GOVERNING THE DIVISION OF THEIR BENEFITS IN A DIVORCE CAN SOMETIMES CONFLICT WITH STATE LAWS. IN THESE CASES, FEDERAL LAW WILL PREVAIL.
federal employee benefits. Not following the guidance provided by the Office of Personnel Management (OPM) and the Federal Retirement Thrift Investment Board (FRTIP) can cause problems for the federal civil servant and grief to the former spouse.
A qualifying Retirement Benefits Court Order (RBCO) divides the TSP account and must meet specific requirements to be accepted. OPM must comply with the terms of a properly filed
former employee to name a former spouse as the beneficiary of their life insurance proceeds, under the FEGLI law, an insured person may change their beneficiary designation at any time. This is true even if a court order directs otherwise because the FEGLI law preempts state law and court orders based on state law to the extent that the state law is inconsistent with the FEGLI contract. Assigning ownership of the FEGLI coverage to the former spouse makes it
RECOMMENDED NARFE WEBINARS
• Divorce, Remarriage, and Federal Benefits
• Protecting Your Federal Benefits in Divorce
NARFE’s Federal Benefits Institute webinar archives are found here: www.narfe.org/webinar-archive/
no longer possible for the employee or retiree to change the beneficiary or cancel the coverage.
There are resources available for the attorney to follow when drafting court orders that potentially divide a portion of the TSP account, the CSRS or FERS annuity, and a former spouse survivor annuity.
The TSP offers a booklet titled Court Orders and Powers of Attorney, Booklet 11, which can be found at https://www.tsp.gov/publications/tspbk11.pdf and OPM provides the Handbook for Attorneys on Retirement, Health Benefits and Life Insurance Under CSRS, FERS, FEHB and FEGLI, which can be found at https://www.opm.gov/retirementcenter/publications-forms/pamphlets/ri38-116.pdf.
OPM also publishes a booklet titled Court-Ordered
Benefits for Former Spouses, RI 84-1, which can be found at https://www.opm.gov/retirementcenter/publications-forms/pamphlets/ri84-1.pdf. It provides federal employees, retirees, and their spouses who want general information about how a court order related to a divorce or separation could affect their retirement and insurance benefits.
NOTE: There are specific rules for military personnel and federal civil servants under Foreign Service Pension programs with the U.S. Department of State and retirement programs particular to the Central Intelligence Agency that are not addressed in this Benefits Brief.
—JAMES MARSHALL IS A FEDERAL RETIREMENT BENEFITS SPECIALIST WITH RETIRE FEDERAL AND THE PRINCIPAL OF FEDERAL RETIREMENT, LLC.
Going Into Retirement with
STUDENT LOAN DEBT
BY SUSAN THARES
More than 3.5 million Americans age 60 and over owe more than $125 billion in student loan debt. You might think most of this debt was assumed by parents to send their kids to college, but according to the Government Accountability Office (GAO), almost three-quarters of it was borrowed for their own post-secondary education. They took on student loan debt because they wanted to brush up their skills to get a promotion, get higher pay or potentially change careers. Many now face retirement with less money than those who did not have to borrow.
“In recent years, student debt has increasingly become a burden for American seniors, many of whom have been forced to tap into Social Security benefits to repay student loans taken out for themselves or their children.”
— Richard Cordray, federal student aid chief operating officer, U.S. Department of Education
Carrying student loan debt into retirement can also make it challenging to keep up with basic living expenses like health care, and it can affect your leisure spending for things, like traveling, that you worked for decades to earn.
Some have taken on second jobs, delayed retirement or contemplated pulling money out of their Thrift Savings Plan (TSP) or 401K. A 2019 American Association of Retired Persons (AARP) study suggested that borrowers who waited to save for retirement due to their student loan debt needed to work two to seven years longer to achieve the same account balances as their peers without debt.
Lu Baurle, 63, of Lakeville, MN, took out $83,000 in Parent PLUS loans for her youngest son to attend a private out-ofstate college. The loans covered the gap between financial aid and her savings. As a single divorced parent, Baurle carries the entire repayment burden despite her ex-husband’s promise to help with payments. She was in deferment status during the COVID-19 repayment pause and is now making payments on a 20-year repayment plan. It’s put a huge strain on her budget and purchasing decisions.
“I have to work more to cover the monthly payment,” Baurle says. “I’m fortunate that, as a flight attendant, I can take on extra flights to cover the expense. The downside is that interest rates are high, so most of my payment goes toward interest and not the principal. Unfortunately, there isn’t any debt relief for parents.”
Steve Simpson from Gig Harbor, WA, took out $30,000 in student loans when he decided to go back to school after retiring. He worked in the tech industry for 25-plus years before retiring but felt at loose ends, so he decided to return to the workforce.
Unfortunately, it was just as the job market tanked in 2008. Interviews were few and far between, so Simpson returned to school to get his master’s degree, which required him to take on student loan debt. He has no regrets, now age 70, as he is enjoying his second career in computer forensics and can manage his student loan payments.
In March 2020, the U.S. Department of Education temporarily suspended federal student loan payments and collections, giving borrowers a bit of a reprieve. It was extended several times as part of COVID-19 emergency relief measures. In June 2023, Congress passed a law preventing further extensions of the federal student loan pause, and payments resumed in fall 2023. The department provided a 12-month on-ramp to the repayment
process, where borrowers who were financially vulnerable or not immediately able to make payments were provided an adjustment period. During this period, which ends September 30, 2024, borrowers who miss payments will not be considered delinquent or placed in default. With payments now resumed, many borrowers are feeling the pinch.
“In recent years, student debt has increasingly become a burden for American seniors, many of whom have been forced to tap into Social Security benefits to repay student loans taken out for themselves or their children,” said Richard Cordray, federal student aid chief operating officer, U.S. Department of Education.
So, what are your options? They are complicated and depend on the type of student loan you have.
Share Your NARFE Pride
ShopNARFE is the official online store offering NARFE-branded merchandise. A portion of the proceeds from all purchases support the organization.
Shop now at www.narfe.org/shopnarfe.
I
INCOME-DRIVEN LOAN REPAYMENT OPTIONS
Limited-time Fresh Start option:
• Fresh Start offers special benefits for borrowers with defaulted student loans. It ends Sept. 30, 2024.
Income-driven repayment plan (IDR), which adjusts your payments according to your income and family size. There are four IDR plans:
• Saving on a Valuable Education (SAVE) Plan—formerly the REPAYE Plan
• Pay As You Earn (PAYE) Repayment Plan
• Income-Based Repayment (IBR) Plan
• Income-Contingent Repayment (ISR) Plan
Loan forgiveness/cancellation options:
• Teacher Loan Forgiveness
• Public Service Loan Forgiveness (PSLF)
• Borrow Defense to Repayment
F YOU HAVE FEDERAL STUDENT LOANS
YOU TOOK OUT FOR YOURSELF
These loans are either Direct Subsidized Loans, Direct Unsubsidized Loans or, before 2010, Federal Family Education Loans (FFEL), or Grad PLUS Loans.
Repayment Options if You’re Struggling with Making Your Payments
If you’re having trouble making your payments, you may find relief in an income-driven repayment plan (IDR), which adjusts your payments according to your income and family size. While these will increase your loan repayment period, your remaining loan balance is forgiven after a set period. Those time periods can be 10 years in some public service careers and 20 to 25 years in all others.
The four IDR plans are:
• Saving on a Valuable Education (SAVE) Plan—formerly the REPAYE Plan
• Pay As You Earn (PAYE) Repayment Plan
• Income-Based Repayment (IBR) Plan
• Income-Contingent Repayment (ISR) Plan
Learn more about these plans and how to apply at https://studentaid.gov/manage-loans/ repayment/plans#income-driven.
The Department of Education Office of Federal Student Aid has a loan simulator tool that helps you estimate your monthly student loan payments under the various repayment plans and helps you choose an option that best meets your needs. In some instances, it might be beneficial to consolidate your federal student loans; this tool can also help you decide if that’s the best option for you: https:// studentaid.gov/loan-simulator/.
The different types of federal student loans and the many repayment plans can be very confusing. It is possible that new repayment plans have been created since you took out your student loans, which historically offered only a 10-year repayment plan.
Can You Qualify for Student Loan Forgiveness or Cancellation?
The Biden administration has forgiven the student loan debt of 4 million borrowers. Sometimes, you may also qualify for federal
student loan forgiveness or loan cancellation. Public Service Loan Forgiveness and IDR are the two main programs. Your debt is forgiven if you work in a qualifying public service job and make 120 qualifying payments. Similarly, if you are on one of the four IDR plans, your payments are based on family size and a share of your discretionary monthly income and it can lead to the erasure of your debt after 10 to 25 years of payments. More information: https://studentaid.gov/manage-loans/ forgiveness-cancellation
What if You Are in or Near Default?
Failing to make timely student loan payments can have serious consequences.
A loan becomes delinquent if you do not make a payment by the specified date after 90 days. If you continue to be delinquent, you risk your loan defaulting. Default occurs when a payment is not
made in more than 270 days after the due date. Defaulting on your federal student loans has grave consequences, including a lowered credit score that can impact your ability to borrow, rent an apartment, and more.
If you defaulted on any of your federal student loans, contact the organization that notified you of the default as soon as possible so you can explain your situation fully and discuss your options. If you make repayment arrangements soon enough after your loan has gone into default, you may be able to resolve the default quickly. Do not get discouraged if you default on your federal student loan and its potential impacts on your financial future. Options are available. More information: https:// studentaid.gov/manage-loans/default/get-out
The Department of Education also has a temporary Fresh Start program that offers special benefits for borrowers with defaulted federal student loans. This second chance program ends
“The downside is that interest rates are high so most of my payment goes toward interest and not the principal. Unfortunately, there isn’t any debt relief for parents.”
— Lu Baurle, of Lakeville, MN, who took out $83,000 in Parent PLUS Loans for her youngest son to attend a private out-of-state college
Sept. 30, 2024, so you still have time to enroll if you qualify: https://studentaid. gov/announcements-events/defaultfresh-start
Who Can You Contact?
Several loan servicers manage repayment for the Department of Education. They work with you on repayment options such as loan consolidation and IDR plans. Borrowers need to keep their contact information up to date. If your circumstances change at any time during your payment period, the loan servicer will assist you with options. If a borrower is not sure who their servicer is, they can log in to https://studentaid.gov/ to find out the name of their servicer.
IF YOU HAVE FEDERAL DIRECT PLUS LOANS FOR PARENTS (PARENT PLUS LOANS)
These are loans taken out by parents for their dependent undergraduate students with an interest rate that is fixed for the life of the loan. Payments begin as soon as the loan is fully paid out unless you request a deferment while your child is in school.
During periods of deferment, interest will accrue. You may have chosen to pay the accrued interest or allowed the interest to capitalize and add to your principal loan balance. Like the other federal student loans, your loan servicer, assigned by Department of Education, will notify you when your first payment is due. The parent borrower is legally responsible for repaying the loan.
Unfortunately, repayment options are very limited, but parent borrowers can become eligible for the Income Contingent Repayment Plan by consolidating their Parent PLUS loans into a Direct Consolidation Loan. Under certain circumstances, you might be eligible to have all, or part of your loan forgiven. More information: https://studentaid.gov/manageloans/consolidation
to NARFE programs Donate
Donate to NARFE
MAKE CHECK PAYABLE TO: NARFE
PLEASE MAIL COUPON AND CHECK TO:
NARFE / 606 N. Washington St. / Alexandria, VA 22314 or donate online at www.narfe.org/ donate
With NARFE’s thanks, you will receive a NARFE Photo Calendar
NARFE safeguards the earned pay and benefits of America’s five million federal workers, retirees, their spouses, and survivors. NARFE is YOUR legislative voice and tireless advocate.
NARFE contributions are NOT tax-deductible.
Enclosed is my NARFE Contribution: $ __________________ All donations go to the NARFE General Fund to support NARFE Programs and operations.
NARFE members contributed for Alzheimer’s research: $17 Million Fund $16,232,898.13*
*Total as of May 31, 2024. All contributions go directly to Alzheimer’s research, with the exception of funds given to the Walk to End Alzheimer’s or The Longest Day.
If you have any questions, write to:
National Committee Chair
Olivia Williams PO Box 2175 Columbia, SC 29202
OR E MAIL: oeashf3@gmail.com
MAKE CHECK PAYABLE TO:
NARFE-Alzheimer’s Research (w rite your chapter number on memo line)
PLEASE MAIL COUPON AND CHECK TO:
Alzheimer’s A ssociation 225 N. Michigan Ave., 17th Floor Chicago, I L 60 601-7633
Your charitable contribution is tax-deductible to the fullest extent allowed by law.
Enclosed is my NARFE-Alzheimer’s contribution: $ Every cent that is contributed is used for research.
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.
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.
Enclosed is my NARFE-FEEA Fund Contribution: $ ________
Name:
Address:
City:
State: ZIP:
Email:
IF YOU HAVE PRIVATE STUDENT LOANS FROM A PRIVATE LENDER/BANK
Private student loans are made by private organizations such as credit unions or banks, and have terms and conditions that the lender sets. Generally, these loans are more expensive than federal student loans and are not eligible for federal debt forgiveness programs like Public Service Loan Forgiveness or Total and Permanent Disability Discharge. If you are having trouble
on better terms to repay the balance of what you currently owe.
If you can refinance at a lower interest rate, you can potentially lower your monthly payment, save thousands of dollars over the life of the loan and get out of debt faster. Like refinancing your home or other type of loan, it pays to shop around for a lender. Most lenders will do a soft credit check to pre-qualify you and give you an estimated interest rate and monthly payment amount.
Federal student loans cannot be discharged in bankruptcy, and, contrary to the belief of some, they are not written off at age 65. If you’re collecting Social Security, up to 15% of your benefits can be garnished if you’re in default. Some 114,000 people have had their Social Security garnished because they could not make their payments and defaulted on their loans. If you’re still working, the government can withhold 100% of any tax refund to offset your defaulted loan.
“The department has taken steps to help borrowers afford their monthly payments through income-driven repayment plans, including the Saving on a Valuable Education (SAVE) Plan,” Cordray says. “SAVE is cutting monthly payments to $0 for millions of borrowers with low incomes. This plan saves many borrowers at least $1,000 per year and ends runaway interest that has left borrowers owing more than their initial loan, which matters to many seniors who still carry student loan debt. Seniors can explore the benefits of the SAVE Plan at StudentAid.gov/save.”
Don’t let student loan debt ruin your retirement plans. You’ve worked hard to get to this point. You’re not alone, and taking advantage of these options may help ease the burden of your student loan debt.
—SUSAN THARES IS A RETIRED MANAGEMENT ANALYST
FOR THE U.S. DEPARTMENT OF EDUCATION OFFICE OF FEDERAL STUDENT AID
Keynote Speaker Sponsor
Federation President’s Meeting Sponsor
Badge and Lanyard Sponsor
Monday Break Sponsor
Charging Station Sponsor
Program Book Sponsor
Federation President’s Meeting Sponsor
Tote Bags Sponsor
Federation President’s Meeting Sponsor
Session Sponsor
ABY IVANA SARA
s we enter August, a pivotal month known for congressional recess and heightened political activity, the focus of our advocacy efforts intensifies. This period offers a unique opportunity for grassroots movements, especially during the buzz of the 2024 general election year. This year’s theme for Grassroots Advocacy Month (GAM) encourages diving into the dynamics of political engagement during an election cycle and understanding how political power and public policy shifts can reshape our strategies and outcomes.
higher as we approach the general election and change our advocacy outcomes based on electoral results. Political control may switch hands, and with it, the legislative agendas that drive our advocacy topics may either find new support or face hurdles.
The Impact of Congressional Recess
During congressional recess, legislators return to their districts, providing you, as advocates, with a golden opportunity to engage directly with your lawmaker. This is a crucial time for constituents to voice their concerns, showcase their support for or opposition to policies, and influence lawmakers' perspectives.
When members of Congress are in their districts, they are more accessible to their constituents. This period is ideal for organizing chapter/federation meetings for your lawmaker to attend or other community events, like town halls, where NARFE members can interact faceto-face with their elected officials. These direct interactions are invaluable for making personal connections and conveying the human side of policy issues.
The recess period allows you to talk more informally in a relaxed setting with your lawmaker, which can help build trust and rapport. They are more likely to remember personal stories and connections made during these times, which can be beneficial when they return to Washington, D.C., and the legislative session resumes.
This time is also valuable for NARFE members to reinforce their presence and advocacy efforts within the community. Strategizing this ensures that relationships with legislators are not just transactional but are built on a foundation of ongoing communication and mutual understanding. This continuous engagement can lead to more sustained support for NARFE’s legislative priorities throughout the year.
Navigating Advocacy in an Election Year
Election years magnify the importance of advocacy efforts. Strategies must adapt to candidates vying for office and potentially shifting political landscapes. In 2024, the stakes are
Advocacy during an election year is complex. Candidates are particularly attuned to the concerns of voters, making it an opportune time to push for policies that benefit federal employees and retirees. However, the heightened political activity also means that messages need to be clear, compelling, and nonpartisan to cut through the noise and effectively reach candidates.
Adapting Strategies Amid Political Shifts
Grassroots advocacy must remain agile and responsive. Strategies that work under one administration or legislative majority might not hold under another. Advocates need to reassess their approaches based on the prevailing political climate, focusing on:
Building Relationships: Regardless of party, lasting relationships with legislators can transcend political moves. Establishing and nurturing connections with lawmakers, their staff, and key influencers ensures that NARFE's concerns remain a priority regardless of who holds office.
Education and Engagement: Continuous education on our legislative issues is essential to maintaining focus, regardless of political shifts. We ensure that our advocacy efforts remain strong by training and equipping our members with the knowledge and confidence to engage with legislators effectively. This creates a virtuous cycle of education and dissemination, where well-informed members can confidently educate legislators and the broader community.
Bipartisanship: Striving for bipartisan support can safeguard issues from becoming casualties of political warfare. Policies that attract support across the political spectrum are more likely to endure through updates in administration and congressional leadership.
Tools That Withstand Political Changes
Certain advocacy tools retain their effectiveness, no matter the political landscape:
Personal Stories: Sharing personal narratives can humanize issues, making them more relatable
and harder to ignore. Stories from federal employees and retirees about how specific policies burden their lives can resonate deeply with lawmakers and the public.
Data and Research: Empirical evidence can support the necessity for legislative updates, especially when including personal stories like sharing the number of federal employees and retirees affected in your district. Data points and issue briefs serve to inform legislators. Many can underestimate the fact that lawmakers may be unaware of specific issues hitting close to home. Data can help build a case that speaks to solid facts regardless of political affiliation.
Digital Campaigns: Using digital platforms for advocacy ensures broad reach and engagement. Social media, email campaigns, and virtual town halls can amplify voices and maintain momentum even when in-person meetings are not feasible. Not only is the virtual landscape more convenient, but more prevalent, with virtual meetings increasing from 48% to 77% between 2020 and 2022, according to Flowtrace, an employee analytics company.
NARFE’s Nonpartisan Stance and Voting
As a nonpartisan organization, NARFE focuses on policy, not politics. However, encouraging voting is a fundamental aspect of civic engagement. Voting is not just a right but a powerful tool for advocacy. By participating in the electoral process, our members can help elect officials who align with their views on critical issues that federal employees and retirees care deeply about. In doing so, they actively shape the policy landscape in which our advocacy operates.
NARFE encourages members to vote by providing nonpartisan information about candidates’ positions on issues relevant to federal employees and retirees. This approach helps members make informed decisions at the ballot box while maintaining the organization’s commitment to nonpartisanship.
Leveraging Grassroots Advocacy Tools All Year Long
There are always advocacy tools ready to use! Regardless of an election outcome, there are various grassroots tools that can be leveraged 365 days a year, including, but not limited to:
Action Letters: These letters are a quick way to write to your legislators on various legislative issues affecting the federal community. It is a steadfast way of taking action, especially with any new legislative development! Members can easily send an action letter via NARFE’S legislative action page while obtaining background information on the bill or issue. They are also provided a letter template to personalize, making the issue more tangible.
In-Person/Virtual
Meetings:
Personal interactions remain one of the most powerful advocacy tactics, and to support these interactions, NARFE provides essential tools, such as meeting request templates and talking points on various legislative issues, and even issue briefs and fact sheets to reference and share. Organizing one-onone meetings with lawmakers allows members to convey their stories and concerns directly, especially when face to face if possible. Whether in-person or virtual, we make sure to equip you with the resources to go into your meeting feeling poised and ready to talk policy, conveying how legislative decisions affect your livelihood, attributing a natural face and voice to the issue.
Phone Banking: Phone banking
members can pick up the phone, and call their representatives to express concerns on the matters affecting them, and call their lawmakers to take a specific action.
NARFE gives you the tools to make your call a breeze, with phone scripts outlining key points to mention, while members can also personalize their calls with their own experiences to share.
Social Media: Using social media platforms for advocacy is an increasingly savvy and essential way to optimize our advocacy efforts—more than one might think!
NARFE provides sample posts and tweets that members can use and circulate to increase visibility on any issue. These templates help ensure that messages are clear, consistent, and compelling. Given the prevalence of social media, this approach is highly effective—more than 95% of members of Congress are on Twitter, and many are also active on Facebook, LinkedIn, and Instagram, according to the Pew Research Center. This broad presence offers numerous opportunities to get a lawmaker's attention or generate community support.
Social media allows for continuous storytelling, as posts can be liked, retweeted, and shared, amplifying the reach of our advocacy efforts. Effective use of hashtags, tagging legislators, and creating shareable content can significantly enhance the reach of NARFE's advocacy initiatives, ensuring that our issues and presence are constantly highlighted.
Advocacy Training: Effective advocacy techniques help NARFE leaders, like Ruthann Couch of our Oregon Federation, take action confidently. NARFE training conferences LEGcon and FEDcon are key.
“Every LEGcon helps me get better,” said Couch, who’s attended for more than 15 years. “I am still improving my ability to frame issues.”
NARFE’s monthly grassroots educational videos offer more insight, covering topics like how to communicate with legislators, how to write compelling letters to the editor, how to engage with legislators on social media, how to organize local advocacy events, and more.
Grassroots Lobbying: Encouraging members to participate in grassroots lobbying efforts can amplify
NARFE’s voice. Lobby day, as a part of LEGcon, allows members to meet with legislators and their staff to discuss the key aspects of legislation resonating with our members. However, GAM is also a prime time to similarly accomplish a “lobby day” but for the duration of a whole month! All August, members set up meetings with their lawmakers and/or their staff in their own localities, attend town halls/community events, or invite members of Congress to federation/chapter meetings to sit down, address NARFE legislative priorities and concerns, and get to know members more personally.
Importance of Consistent Advocacy
Despite the fluctuations in political power and legislative priorities, it is crucial for grassroots advocacy efforts to remain steady and persistent. Legislative processes can be slow and complex, and achieving meaningful results often requires sustained effort over time. By maintaining a consistent advocacy presence, NARFE can ensure that the issues important to federal employees and retirees stay on the legislative agenda.
Consistent advocacy also helps build a strong foundation of support within the organization. Engaging fellow members regularly keeps them informed and motivated, fostering a sense of community and shared purpose. This collective strength can be a powerful force in advocating for policies that benefit federal employees and retirees.
The Call to Action
As we navigate the complexities of an election year and the opportunities presented by the congressional recess, the call to grassroots advocacy becomes more pronounced. The effectiveness of our efforts is not just in swaying current legislation but in setting a precedent for active, informed, and continuous civic participation. While the political landscape is ever subject to shifts, the essence of advocacy remains the same: a committed, informed, and engaged populace is the cornerstone of a functioning democracy. Our actions during this time can set the tone for the future, emphasizing the necessity for continual advocacy and the importance of each vote.
Let this Grassroots Advocacy Month remind us of each member’s strength and may our voices lead to meaningful changes that resonate beyond 2024.
—IVANA SARA IS NARFE’S GRASSROOTS PROGRAM AND LEGISLATIVE AFFAIRS MANAGER.
BIENNIAL
NATIONAL CONFERENCE
THE EFFORT TO
ADVANCE NARFE’S
AUGUST 18-20
HYATT REGENCY ST. LOUIS AT THE ARCH
MISSION STARTS WITH YOU.
JOIN US for FEDcon24, NARFE’s biennial national training conference. Gain the knowledge necessary to LEARN how to make the most of your benefits, ADVOCATE to protect those earned benefits, and LEAD the organization that defends them into the future.
FEDCON24 BREAKOUT SESSION PREVIEW
Attendees will choose from at least six options during each breakout session timeslot, with session tracks for Advocacy, Active Federal Employee, Federal Benefits, NARFE Leadership, and Lifestyle. Examples of sessions within featured tracks are listed below:
ADVOCACY TRACK
Learn the latest updates on NARFE’s advocacy efforts, and how you can get more involved at the grassroots level and with NARFE-PAC.
Advocacy Update: What’s the Latest and What’s Ahead
Evolving Advocacy: NARFE’s Grassroots Toolbox for Today and Tomorrow
Leading NARFE-PAC in 2024 and Beyond
FEDERAL BENEFITS TRACK
Listen to NARFE’s top federal benefits experts, Tammy Flanagan and Mark Keen, as they provide guidance on critical federal benefits topics.
Don’t Fall for These Common Retirement Myths
Getting Your Affairs in Order: Estate Planning for Feds
Maximizing the After-Tax Value of Retirement Savings
Medicare & FEHB/PSHB
LIFESTYLE TRACK
Focus on your personal life with a purpose as you listen to experts navigate some of the concerns and interests that arise as you progress through the stages of life in this lifestyle centered track.
What Do I Do With All of My Stuff? (My Kids Don’t Want It)!
Nutrition and Aging: Gaining Powerful Nutrient Knowledge
Getting Started in Genealogy
NARFE LEADERSHIP TRACK
Identify and develop skills through training focused on bettering both NARFE chapters and members in these leadership track sessions. Session topics are tentative until confirmed, and additional topics may be added.
Membership Recruitment Chapter Officer 101
Best Practices for Chapter/Federation Communication AMS Strategies for Officer Success
Volunteers are Your Greatest Resource: Best Practices in Volunteer Recruitment and Retention
ACTIVE FEDERAL EMPLOYEE TRACK
Explore how to take advantage of your federal career before retirement through this track of active employee-catered sessions.
The Confidence Catalyst: Unleashing Your Full Potential At Any Age and Stage
Career Management Strategy: Power Up Your Career
Flex Your Problem-Solving Muscles
Why Mentoring Matters
ACTIVE FEDERAL EMPLOYEE BENEFITS TRACK
The Final Steps: Transition From Employee to Annuitant
Retirement Planning For Pre-Retirees
FEDCON24 SPEAKER SPOTLIGHT
KEYNOTE SPEAKER: ALEX SHEEN FOUNDER OF BECAUSE I SAID I WOULD
Alex Sheen is the founder of because I said I would, a global social movement and nonprofit dedicated to bettering humanity through promises made and kept, created in memory of his father, whose word was his bond. He will draw on inspiring, real-life examples and messages to not only encourage attendees to make—and keep—promises to take action, but also motivate others to volunteer in support of NARFE and its missions.
LIFESTYLE TRACK SPEAKERS
DOROTHY BREININGER
WHAT DO I DO WITH ALL OF MY STUFF? (MY KIDS DON’T WANT IT)!
“Dorothy The Organizer” is America’s Most Innovative Professional Organizer featured on TV show “Hoarders”
BROOKE HUBER
NUTRITION AND AGING: GAINING POWERFUL NUTRIENT KNOWLEDGE
Registered and licensed dietitian with Aging Ahead
ILENE MURRAY GETTING STARTED IN GENEALOGY Publications director at the St. Louis Genealogical Society
ACTIVE FEDERAL EMPLOYEE TRACK SPEAKERS
TREVA DARICE SMITH
CAREER MANAGEMENT STRATEGY: POWER UP YOUR CAREER
President of Career Development and Business Etiquette Consulting, LLC
SHERYL VOGT & AMITA SHERWOOD
FLEX YOUR PROBLEM-SOLVING MUSCLES
MIKA J. CROSS THE CONFIDENCE CATALYST: UNLEASHING YOUR FULL POTENTIAL AT ANY AGE AND STAGE
Workplace Transformation Strategist
KENNETH BAILEY WHY MENTORING MATTERS
Retired federal employee and Army combat veteran
LUnderstanding the TSP Beneficiary Participant Rules
ast month’s column explained that there are two types of Thrift Savings Plan (TSP) participants: a TSP participant and a TSP beneficiary participant. Although their names are similar, there are significant differences between the two, including the rules they and their beneficiaries must follow.
Recall that a TSP participant is the original TSP owner (i.e., the federal employee or uniformed service member who contributed to the TSP account), while a beneficiary participant can only be a surviving spouse who inherits a TSP account from a TSP participant.
After inheriting a TSP account, beneficiary participants have several options. They may maintain the TSP beneficiary participant account or transfer it to an individual retirement account (IRA). Alternatively, if they also have a TSP account from their own federal or uniformed service, they can transfer the beneficiary participant account to their own TSP.
While there is no deadline for transferring a TSP beneficiary participant account to an IRA or their own TSP, maintaining a TSP beneficiary participant account has significant implications for both the beneficiary participant and their beneficiaries. For instance, a beneficiary participant will be subject to different required minimum distribution (RMD) rules than if they transferred the TSP beneficiary participant account to an IRA or their own TSP.
For example, retirement account owners (including IRA owners and TSP participants) must typically start RMDs the
year they turn 73 (the required minimum distribution, or RMD, age increases to 75 in 2033). On the other hand, a beneficiary
AFTER INHERITING A TSP ACCOUNT, BENEFICIARY PARTICIPANTS HAVE SEVERAL OPTIONS.
participant’s first RMD year depends on the TSP participant’s age at death. More specifically, whether the participant died before or after the required beginning date (RBD), which is April 1 of the year following the year the participant turns 73 or retires, if later.
Suppose the TSP participant dies before the RBD. In that case, the beneficiary participant’s first RMD must be distributed by the later December 31 of the year the TSP participant would have turned 73 or by December 31 following the year the TSP participant died. If the TSP participant dies after the required beginning date, RMDs must begin by December 31 of the year after the TSP participant dies.
Suppose the beneficiary participant is younger than the deceased TSP participant. In that case, this rule may require the beneficiary participant to start taking RMDs sooner than they would have to if they transferred the TSP beneficiary participant account to an IRA or their own TSP.
For example, assume a TSP participant dies at the age of 75 and leaves his TSP account to his 65-year-old spouse. In this case, the surviving spouse as a beneficiary participant would have to start RMDs by December 31 of the year following the year of the TSP participant’s death.
On the other hand, if the surviving spouse transfers the TSP beneficiary participant account to an IRA or their own TSP, they won’t have to start taking RMDs until they turn 73.
Furthermore, while a TSP participant and IRA owner use the IRS’s uniform lifetime table to calculate RMDs, a beneficiary participant’s RMD will be calculated using the single life table. This results in an RMD that is significantly larger (60% +) than an RMD calculated using the Uniform Lifetime Table.
Perhaps the biggest drawback to maintaining a TSP beneficiary participant account occurs at the death of the beneficiary participant. When a beneficiary participant dies, the only option their beneficiary (spouse or nonspouse) has is a lump sum distribution paid directly to the beneficiary. Unlike following the death of a TSP participant,
BENEFITS RESOURCES
NARFE OFFERS MEMBERS a wide range of information on federal benefits. Visit www.narfe.org/federal-benefits-institute.
the lump sum distribution paid to the beneficiary of a beneficiary participant may not be transferred to an IRA or inherited IRA. In other words, it can never be put back into a retirement plan, and any part of the distribution coming from the traditional TSP will be fully taxable.
Despite the potential drawbacks, there are circumstances when it makes sense for a surviving spouse to maintain a TSP beneficiary participant account. For example, beneficiaries are not subject to the 10% early distribution penalty when distributions are taken before age 59 ½.
Suppose a surviving spouse is younger than 59½ and needs access to the TSP beneficiary participant account. In that case, it may make sense to maintain and take withdrawals from the account until they reach age 59½. At that point,
the surviving spouse doesn’t have to worry about the 10% early withdrawal penalty. They could transfer the beneficiary participant account to an IRA or their TSP account.
Beneficiary participants must understand the potential consequences of maintaining a TSP beneficiary participant and their other options to avoid costly outcomes.
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.
TNARFE Creates Director of Chapter Relations Position, Promotes Sandra Lawing
he evolution of NARFE’s Member Engagement Department reached another milestone this spring with the creation of a new position: director of chapter relations. Sandra Lawing, who has worked at NARFE for 29 years and most recently as director of member services, stepped into this new role May 6.
Lawing is now responsible for overseeing all chapter closures and mergers and providing guidance and training resources to chapter leaders, especially brand-new leaders. She will also help with matters about chapter dues, life members and other needs and requests for chapters and federations.
The creation of this new position was based on a careful review of continued feedback from members and chapter/ federation leaders, according to
Nora MacDonald, director of member engagement.
“I love my job,” Lawing said, adding that this is not a huge change to her. “I’ve always worked with chapters.”
Lawing has been the go-to headquarters contact for reports, member information, invoices, renewals, applications, and more. She has the experience and professionalism to work across NARFE’s chapters to assist with the sensitive handling of chapter closures and mergers, which
2024 CONFERENCES & EVENTS
Information as of May 29, 2024:
ALASKA: virtual conference September 28, Contact Federation President Paul McIntosh, mcintoshpaul10@ gmail.com or (907) 433-9833, for more information.
CONNECTICUT: conference October 10, Marriott Courtyard, 4 Sebethe Dr, Cromwell. Contact Federation Secretary Peggy McGrath, pleisure@cox.net, for more information.
ILLINOIS: conference September 17-19, Thelma Keller Convention Center, 1202 N. Keller Drive, Effingham. Contact Convention Chair Linda Glasgow,
is no longer news for NARFE as it continues to pivot toward sustainable growth.
“This position focuses more on giving support and structure to the chapter and federation officers who need more assistance in performing their roles,” she said. “It can be technical for them. Many officers are left holding a role that did not receive additional assistance from past or present officers, and these officers did not have enough information on what is needed to perform their role effectively. We have booklets, but they may need one-on-one help regarding transitions and roles.”
Lawing receives calls and emails from officers fairly often stating how new they are to their role or how new they are to creating financial reports and needing the correct form
glasgowljg43@aol.com, or visit www.narfe.net/site/IL/ for information.
IOWA: conference September 17-18, Meskwake Conference Center, Tama. Contact Federation President Dorman Otte, dormanotte@gmail.com, for information.
NEW HAMPSHIRE: conference October 30, Holiday Inn Concord Downtown Hotel, 172 No. Main St, Concord. Visit www.narfe.org/NH for information.
REGION IX SYMPOSIUM: Alaska, Idaho, Montana, Oregon and Washington, October 24-26, Three Rivers Convention Center, Kennewick, WA. Contact Mary Alice Binder, mary_binder@msn.com, or visit http://www. narfe.org/wa/ for more information.
from headquarters. Her team is also building a resource list for new or struggling officers.
Lawing saw numerous chapters close during the pandemic. Now is the time to sustain chapter membership and be a hands-on, supportive resource. She will explore individual chapters more closely to understand their strengths and weaknesses, as well as be a resources to help set up new chapters.
“I have the opportunity to build a relationship with officers to maintain how accurate information is given on a national level while helping identify how to better support our chapters in delivering value to our members and on how chapters can help NARFE achieve its goals,” she said.
Lawing started at NARFE as a receptionist and then as a 1-800 membership operator. She worked her way up to supervisor, manager, and
director. She’s worked closely alongside staff in the membership department for a long time, and they are a tight-knit group.
“I’m here for the officers,” she adds. “I’m here for the members. It’s just all about NARFE.”
With this personnel change, Natcole ReidMcCorkle, senior manager of membership data, will oversee NARFE’s team of four membership engagement representatives. Reid-McCorkle’s leadership role has expanded within the department, and the department has seen rapid improvement in key metrics, including its 98% call answer rate in April. New membership brochures are ready for ordering.
Most membership questions can be directed to 800-456-8410, option 1, memberrecords@ narfe.org. Send chapter-specific questions to fedchpsrvcs@narfe.org.
—BY MATT SANDERSON, CONTENT MANAGER
Explore What’s On the Horizon!
At ARC, we prioritize the true essence of community living. With a plethora of engaging programs, vibrant activities, and abundant choices, life here is anything but dull. Prepare to be pleasantly surprised by the dynamic, social, and cool atmosphere permeating every community aspect. Get ready to experience a community where warmth, vitality, and genuine camaraderie take center stage.
7400 Crestway San Antonio TX 78239-3098
NARFE’s 2024 Photo Contest brought in hundreds of wonderful photographs from NARFE members. Narrowing the selection from several hundred photos was a tremendous effort this year, but the result is a magnificent 2025 NARFE Calendar, which is being distributed during NARFE’s fundraising efforts this year. Check next month’s issue for details on entering 2025 Photo Contest.
Cover: “Down East Lighthouse” by Robert C. Peterson, Summerville, SC, Chapter 1082.
LIST OF 2024 PHOTO CONTEST WINNERS
January: “Glacier Detail (Tracy Arm Fjord, Alaska)” by Norajean Flanagan, Philadelphia, PA, National Member.
February: “All Aboard 473” by Michael Kochmanski, Clarence Center, NY, Chapter 153.
March: “Big Hole Pass (Montana)” by Gary K. Bell, Middletown, MD, Chapter 409.
April: “Sea of Prairie Grass Waving as Spring Storm Approaches (Burns, KS)” by Roger M. Peterson, Buckeye, AZ, National Member.
May: “Raspberry Wine at Oakes Daylilies” by Kathy Nash, Maryville, TN, National Member.
June: “Sunrise Over Myrtle Beach” by David Harrah, Bel Air, MD, National Member.
July: “George Washington’s Headquarters (Cumberland, MD)” by Belinda Huff, Lexington, KY, National Member.
August: ‘“Taggart Lake (Grand Teton National Park, WY)” by Larry Trombello, Milford, DE, Chapter 1690.
September: “Lower Manhattan Skyline (2019)” by James Benoit, Williston, VT, Chapter 208.
October: “Autumn Peace, Fall Trails at Ricketts Glen State Park” by Phyllis Maguire, Wesley Chapel, FL, Chapter 390.
November: “Eagle Eyes” by George Petrovich, Parrish, FL, Chapter 441.
December: “Bear Butte Floating in Northern Lights” by Deborah Zimmerman, Sturgis, SD, Chapter 1635.
RESERVE YOUR CALENDAR NOW
Like what you see above? The 2025 NARFE Calendar will be sent to select NARFE members later this month. You can get ahead of the crowd and reserve your copy with a small donation to NARFE. Remember, your contributions support NARFE’s important advocacy and education initiatives on behalf of all federal employees and retirees. Visit www.narfe.org/reserve-calendar to make your gift today! Allow 6 to 8 weeks for delivery.
What is dues withholding?
NARFE’s Dues Withholding Program
It is a dues-payment method available to retired NARFE members, their spouses and annuitant survivors giving them the option to have their annual NARFE membership dues deducted from their annuities each month.
Advantages
• Save more than 10% off your annual NARFE dues
• Sign up your spouse and double your savings
• You’ll never get another dues reminder from us
• Your monthly payment is affordable and convenient
• You may cancel your dues withholding at any time
How does it work?
One-twelfth of your total dues is automatically deducted from your monthly annuity. Your monthly deduction is determined by the following formula: ($42 NARFE dues ÷ 12) + (Chapter dues - if applicable ÷ 12) = total monthly deduction
How do I sign up?
Complete the Dues Withholding Application below. Send no payment. It may take 60 to 90 days before auto-deduction starts. Your membership starts as soon as your application is received. To learn more about dues withholding, call 800-456-8410
NARFE Dues Withholding Application for NARFE Members who are Retirees, Spouses of Retirees or Annuitant Survivors
STOP! Complete this section ONLY if you are signing up for Dues Withholding. If so, DO NOT send payment
o YES. I want to enroll in NARFE’s Dues Withholding Program. NARFE dues of $42* and chapter dues, if applicable, to be withheld annually. (*Dues-withholding members save more than 10% off the regular NARFE dues rate.)
Social Security Number (9-digit number)
o Mr. o Mrs. o Miss o Ms.
Full Name
Street Address
Apt./Unit
City
State ___________ ZIP
Phone (__________)
Email
Date of Birth _________ /_________ /
Civil Service Annuity Number
(Include prefix, CSA or CSF) (Include any applicable suffix)
NARFE MEMBERSHIP INFORMATION
NARFE Membership ID
NARFE Chapter Number
o YES. I also authorize my (NARFE member) spouse’s dues to be withheld from my annuity. (Additional annual dues of $42 and chapter dues, if applicable, to be withheld annually. If YES, enter spouse’s information below.)
Spouse’s Name
Spouse’s Membership ID
Spouse’s Email
AUTHORIZATION (Withholding will begin in 60-90 days). Send NO PAYMENT with Dues Withholding Application!
I authorize the United States Office of Personnel Management to make appropriate deductions from my annuity payments, not to exceed the amount certified by the National Active and Retired Federal Employees Association as the amount of dues for which I am annually obligated, in accordance with elections I made above, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I made. Please allow 60-90 days for processing.
I understand that this authorization shall be valid until NARFE receives and processes my written notice of cancellation in accordance with its agreement with the Office of Personnel Management and that any disputes regarding this authorization shall be a matter between NARFE and myself. I hold the Office of Personnel Management harmless for any erroneous allotment deduction made pursuant to this authorization.
Signature of Annuitant
or Survivor-Annuitant
Date
Dues payments and gifts or contributions to NARFE are not deductible as charitable contributions for federal income tax purposes.
BYLAWS COMMITTEE
Bylaws and Standing Rule Amendments on the 2024 Ballot
The NARFE Bylaws Committee (BC) has the responsibility of assessing and making recommendations regarding proposed bylaws and standing rule amendments for placement on a ballot for a vote of the membership. The committee may submit proposed amendments and edit, combine, substitute, reject, or rule out of order these proposed amendments.
The 2024 Bylaws Committee was chartered in February 2024 to consider the submitted bylaws and standing rule amendments for a ballot vote in 2024. The committee met five times by GoToMeeting virtual meetings between March and May 2024 and reviewed a total of 19 submissions, including 13 bylaws amendments and six standing rule amendments. The committee approved 14 for the ballot and ruled one out of order. The proposer of one bylaw and three standing rule amendments withdrew his amendments, and one standing rule amendment was merged with a bylaws proposal by the submitter. Of the 14 ballot items, the Bylaws Committee recommended four for adoption (one bylaw and three standing rule amendments) and 10 for rejection. The NEB overruled one appeal of rejection. (BNEB-02-2024)
The proposers of submissions recommended for rejection by the Bylaws Committee were given an opportunity to appeal that decision to the National Executive Board (NEB). Ten appeals were received and forwarded to the NEB. One amendment was not appealed. The NEB upheld the committee’s recommendation of rejection on eight bylaws amendments, recommended adoption of one amendment, and did not vote on one bylaws amendment due to a conflict of interest. (B10-08-2024)
The full text of all bylaws and standing rule amendments approved for the 2024 ballot, as well as the full Bylaws Committee report, are on the NARFE website and on FEDHub. Voting on these amendments will begin after FEDcon24, which will be held in St Louis August 18-20, 2024, and continue to the end of September. The September issue of NARFE Magazine will have a paper ballot and instructions for voting online if so desired. The ballot will ask members to vote on each bylaw and standing rule amendment individually. Members may choose not to vote on any amendment.
Please take the time to study these bylaws and standing rule amendments and discuss them with other members in your chapter and federation. Participate in the discussions on FEDHub and at FEDcon24. Your Regional Vice President may hold virtual meeting sessions for the purpose of discussing the proposed amendments. Voting is one of the most important rights you have as a NARFE member!
Best
Regards,
Rhett Hamiter
Bylaws Committee Chair 2024
BYLAWS AND STANDING RULE AMENDMENTS
Bylaws and Standing Rule Amendments Recommended for Adoption
SRLC-04-2024
Remove NARFE Safe Deposit Box
SRLC-05-2024 NARFE Dedicated Funds
Updates National Secretary/Treasurer Duties. ADOPT
Updates National Secretary/Treasurer Duties. ADOPT
SRMAC-07-2024 End Active Federal Employees (AFEs) Renewal Dues Category Deletes Reference to this multi-year special program. ADOPT
BMAC-17-2024
BNEB-02-2024
Closure of Life Membership Dues Category
Updates Dues Category List. Current Life members will be grandfathered. ADOPT
National Executive Board Clarifies NEB governance authority. ADOPT
Bylaws and Standing Rule Amendments Recommended for Rejection
No member can run as a National and Federation office candidate simultaneously in the same year. REJECT
Merge chapters without formally closing respective chapters.
National Secretary/Treasurer has final Federation Bylaws approval.
Update Regional Vice President minimum compensation. REJECT
Candidates for office required to have minimum qualifications. REJECT
National President Appointing Members to Only NEB Chartered Committees All committees would by chartered by NEB.
AMS Database Training for Officers and Members
Federation and Chapter officers training requirements for AMS database access and management.
National President residency requirement Require National President to reside in the DC area. REJECT
National Secretary/Treasurer nonresidency status
Allow National Secretary/Treasurer to reside outside the DC area. REJECT
B10: Bylaw Submitted by 10 members; BCC: Bylaw Submitted by Compensation Committee: BCH: Bylaw Submitted by Chapter; BFED: Bylaw Submitted by Federation; BLC: Bylaw Submitted by Bylaws Committee: BNEB: Bylaw Submitted by NEB; BMAC: Bylaw Submitted by Membership Advisory Committee; SR10: Standing Rule Submitted by 10 members; SRCH: Standing Rule Submitted by Chapter; SRFED: Standing Rule Submitted by Federation; SRLC: Standing Rule Submitted by Bylaws Committee; SRNEB: Standing Rule Submitted by NEB; SRMAC: Standing Rule Submitted by Membership Advisory 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/2024-narfe-national-election/
Active and Retired Federal Employees–Join NARFE (or Renew) 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?
NARFE MEMBER BENEFITS
• Understand benefit changes and key aspects to stay on top of with NARFE’s monthly webinars, held on a variety of topics such as TSP’s, health insurance options and long term care insurance updates
• Direct access to Federal Benefits Institute experts who can answer your most pressing questions and help you get answers you need from OPM
• Topical and robust articles on new legislation, and topics like car buying tips and finding your path in retirement, and the ever popular Q&A section addressing your most burning benefit questions in NARFE Magazine
• Support from your peers with access to FEDHub, the only national online community for the federal community, and local chapters, where you can meet feds in a neighborhood near you
• Weekly news roundup email called Newsline, with helpful tips and updates from NARFE on the work we are doing to support you
• Discounts on popular national brands with NARFE Perks
• Powerful advocacy and alerts to take action on important legislation pending in Congress and our advocacy team that protects your benefits every day!
NARFE MEMBERSHIP APPLICATION
o Yes. I want to join NARFE for the low annual dues of $48
o Mr. o Mrs. o Miss o Ms. Full Name
Address
Retirement date (or expected)
o Renew my membership
PAYMENT OPTIONS
o Check or Money Order (Payable to NARFE)
o Charge my:
o MasterCard o VISA o Discover o AMEX
Card No.
Expiration Date _______/_______ (MM/YY)
Name on Card
Signature
Date
Membership ID if renewing (ID # can be found on cover of magazine)
I am a (check all that apply)
o Active Federal Employee o Active Federal Employee Spouse
o Annuitant o Annuitant Spouse o Survivor Annuitant
o Please enroll my spouse
Spouse’s Full Name
Spouse’s Email
If your future security is tied to federal retirement benefits—federal retirees, current employees, spouses and individual survivors—you should join NARFE. Membership expiring? Renew now! THREE EASY WAYS TO JOIN/RENEW
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.
TOTAL DUES
$48 annual dues x ________=_________ per person #enrolling total dues
Dues payments are not deductible as charitable contributions for federal income tax purposes.
LOOKING TO MEET OTHERS in the federal community? Go to www.narfe.org/chapters to find a chapter near you.
Are you a new member who wants to receive a FREE one-year chapter membership? Choose one:
o Chapter closest to home OR o Chapter #____________
Renewing members can call 800-456-8410 x1 to inquire about your chapter dues amount or to join a NARFE chapter today.
THANK YOUR RECRUITER Did someone introduce you to NARFE? Please provide their name and member ID.
Recruiter’s Name
Recruiter’s Membership ID
NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members. Some NARFE member benefits are provided by third parties (NARFE Perks), and not NARFE. (02/24)
Consolidated Financial Statements for the Year Ended December 31, 2023
REPORT OF THE NATIONAL SECRETARY/TREASURER
The NARFE consolidated financial statements were prepared on the accrual basis of accounting. Revenue is recognized when earned and expenses recognized when incurred. The statements represent both the operating funds and investments of national NARFE and NARFE-PAC. Investments consist of mutual funds, corporate bonds, and exchange-traded funds and are recorded at their fair value. Further definitions and explanations will be found in the spreadsheets and Notes to Consolidated Financial Statements in the following pages.
The FY 2023 Total Revenues were $9,736,038 with $7,672,636 in Expenses resulting in a change of $2,063,402 in Net Assets. Net Assets have increased, and the cash flow continues to stay positive. This audit includes a consolidated statement that also shows donor restricted contributions of $766,128 in NARFE-PAC revenue.
For NARFE, 2023 continued as a year of transition, with several new personnel, and adjustments to the changing global economic climate. The finance team did a great job managing our overall finances during 2023 while the NARFE accounting system, for the first time in over a decade, had a major update that works much better with the database.
This is an election year in NARFE and the next few years are going to challenge NARFE’s management philosophy. Some progress is being made regarding how to stem the decrease in membership which drives our budget. Our legislative program priorities are also showing progress. Several NEB members, including me, are terming out in our current positions at the end of 2024. As we pass the baton to a new NEB, we look forward to continued improvement.
—Kathryn E. Hensley
REPORT OF THE NATIONAL EXECUTIVE BOARD AUDIT COMMITTEE
The National Active and Retired Federal Employees Association’s (NARFE) Audit Committee and staff met with the association’s external auditors, Marcum LLP, virtually, on April 29, 2024. The purpose of the meeting was to review and discuss the association’s annual financial audit for the year ended December 31, 2023.
The auditors provided a comprehensive review of NARFE’s Consolidated Financial Statements along with supplemental information pertaining to the governance of the audit. The auditors reported finding no material weaknesses in internal controls and have provided an unqualified opinion, the highest level of assurance, “a clean audit”, on the association’s financial statements.
Total assets increased by approximately $1.8 million to end the year at $15,150,456. The increase was mainly from the investments growing by $2,158,839 year over year. Revenue for 2023 was $8,604,935 net of the investment gains of $1.1 million. Expenses for the year were $7,672,636, up from the prior year because of continued inflation. The net results of the revenue less the expenses were a gain of $2.06 million including investment gains or $932,299 excluding investment gains. NARFE’s National Executive Board (NEB) measures the performance of the operations without the performance of the investments.
Pursuant to the Audit Committee’s recommendation, the NEB voted on June 17, 2024 to accept the 2023 Audited Financial Statements. The committee commends NARFE senior management and staff for their contributions to ensuring a “clean audit” for yet another year.
—Marshall L. Richards, Chair
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, 2023, 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, 2023, 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
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.
Other Matter
Report on Summarized Comparative Information
We have previously audited the Association’s 2022 consolidated financial statements, and we expressed
an unmodified audit opinion on those audited consolidated financial statements in our report dated May 1, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2022, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.
Marcum LLP Washington, DC May 7, 2024
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE
CONSOLIDATED STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2023
National Active and Retired Federal Employees Association and Affiliate
Consolidated Statement of Financial Position December 31, 2023 (With Summarized Financial Information for the Year Ended December 31, 2022
(WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2022)
National Active and Retired Federal Employees Association and Affiliate
Consolidated Statement of Financial Position
December 31, 2017 (With Comparative Totals as of December 31, 2016 and 2015)
Additional NARFE Financial Data (provided by NARFE Headquarters for members’ information)
The salaries of the National Executive Board, as of December 31, 2023, are as follows (rounded):
President: $130,000
Secretary/Treasurer: $116,447
Regional Vice Presidents: $14,476
In 2023, NARFE’s investments were held with these firms:
• Operating Fund: Morgan Stanley and Merrill Lynch
• Building Fund: Morgan Stanley
• Life Membership Trust Fund: Morgan Stanley
• Contingency Fund: Morgan Stanley
• PAC Fund: Raymond James
National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Activities for the Year Ended December 31, 2023 (With Comparative Totals for the Year Ended December 31, 2022)
CONSOLIDATED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2023
(WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2022)
Expenses
National Active and Retired Federal Employees Association and Affiliate Consolidated Statement of Functional Expenses for the Year Ended December 31, 2023 (With Comparative Totals for the Year Ended December 31, 2022)
CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES
CONSOLIDATED STATEMENT OF CASH FLOWS
National Active and Retired Federal Employees Association and Affiliate
FOR THE YEAR ENDED DECEMBER 31, 2023 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2022)
Consolidated Statement of Cash Flows for the Year Ended December 31, 2023
(With Comparative Totals for the Year Ended December 31, 2022)
Cash Flows From Operating Activities
2023 2022
Change in net assets 2,063,402 $ (1,684,381) $
Adjustments to reconcile change
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, 2023
NOTE 1 – NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization: National Active and Retired Federal Employees Association (“NARFE”) was established in 1921 to advance the general welfare of its more than 135,000 members and to aid them in securing their rights under federal retirement laws. NARFE is incorporated under the laws of District of Columbia. Its programs include legislative, federal benefits, communications and conferences. These activities are primarily funded by membership dues and contributions and revenue derived from advertising.
There are fifty-four (54) federations, located in the United States, District of Columbia, Panama, Puerto Rico, and the Philippines, that are affiliated with NARFE and conduct local independent
programs. Ten percent of all eligible member national dues collected are passed through to these federations to facilitate local activities. In addition, there are 783 chapters affiliated with NARFE that are located in the United States and some international locations. The chapters are established by members to increase the scope and effectiveness of NARFE. Chapter dues are established by the chapters and are billed and collected by NARFE with the national dues. NARFE rebates to the chapters one-sixth of the national fee charged for all new members joining chapters.
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.
The accompanying notes are an integral part of these consolidated financial statements. 7
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
Principles of Consolidation: The accompanying financial statements as of and for the year ended December 31, 2023, 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: Accounts receivable are primarily derived from program income and are recorded at net realizable value. At each statement of financial position date, the Association recognizes an expected allowance for credit losses. In addition, also at the reporting date, this estimate is updated to reflect any changes in credit risk since the receivable was initially recorded. The estimate is calculated on a pooled basis where similar risk characteristics exist. The Association utilized the loss rate methodology to determine historical credit losses for each risk pool. The loss rate is based on management’s historical collection experience, adjusted for management’s expectations as well as current and future economic conditions. As of December 31, 2023, the Association had not increased its historical loss rate, as receivable amounts are due within one year, and there were no current economic factors that indicated changes were necessary. Uncollectable accounts are written off when all efforts to collect these receivables have been exhausted and there is no possibility of recovery. Recoveries of accounts receivable previously written off are recorded when received as an offset to credit loss expenses in the year of recovery, in accordance with the Association’s accounting policy election.
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, 2023, 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 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 $1,607,907.
• 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, 2023, 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. 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.
Contributions: Unconditional contributions received are recorded as revenue with or without donor restrictions, depending on the existence and/or nature of any donor stipulations. Donor restricted contributions are reported as an increase in net assets with donor restrictions, depending on the nature of the stipulation. When a restriction expires (that is, when a stipulated time restriction ends or purpose of a restriction is accomplished), net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the accompanying consolidated statement of activities as net assets released from restrictions.
Investment Income: Realized and unrealized gains and losses and investment income (loss) derived from investment transactions are included as income in the year earned.
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.
The revenue is recognized when earned according to contractual agreements with each organization.
Conferences and meetings:
Conferences and meetings revenue consists of registrations, event sales and sponsorship fees and is recognized in the year in which the conference takes place. Revenue from these activities received in advance of the meeting is reported as deferred revenue in the accompanying consolidated statement of financial position.
Impairment of Long-Lived
Assets: In accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 360, 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, 2023, the Association has not recognized an impairment loss.
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE
Functional Allocation of Expenses:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023
Royalties: The Association receives various royalties from other organizations. These royalties are primarily from membership benefits offered to members of the Association.
2 – INVESTMENTS AND FAIR VALUE MEASUREMENT
The costs of providing the various programs and other activities have been summarized on a functional basis in the accompanying statement of functional expenses. Expenses directly attributed to a specific functional area of the Association are reported as expenses of those functional areas and are charged
NOTE 2 – INVESTMENTS AND FAIR VALUE MEASUREMENTS
directly to the programs those items support. Shared costs such as office expenses are allocated to the functional area and the programs pro rata based on estimated time and efforts by employees.
Estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
New Accounting Pronouncement:
In June 2016, FASB issued ASC Topic 326, Financial Instruments – Credit Losses, which significantly changed how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through change in net assets. The most significant change in this standard is a shift from the incurred loss model to the expected loss model. Under the standard, disclosures are required to provide users of the financial statements with useful information in analyzing an entity’s exposure to credit risk and the measurement of credit losses. Financial assets held by the Association that are subject to the guidance in FASB ASC 326 were accounts receivable. The Association adopted the standardeffective January 1, 2023. The impact of the adoption was not considered material to the consolidated financial statements and primarily resulted in enhanced disclosures only.
The following table summarizes the Association’s assets measured at fair value on a recurring basis, aggregated by type and fair value hierarchy level within which those measurements were made:
The following table summarizes the Association’s assets measured at fair value on a recurring basis, aggregated by type and fair value hierarchy level within which those measurements were made: Quoted Prices in Active Markets for Other Significant Assets/ Observable Unobservable Total Liabilities Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3)
For the year ended December 31, 2023, the Association used the following methods and significant assumptions to estimate fair value for investments recorded at fair value:
For the year ended December 31, 2023, the Association used the following methods and significant assumptions to estimate fair value for investments recorded at fair value:
Mutual funds and exchange-traded funds – Value of these funds is based on quoted market prices in active markets.
Mutual funds and exchange-traded funds – Value of these funds is based on quoted market prices in active markets.
Corporate bonds – Valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable characteristics.
Certificate of deposits and corporate bonds – Valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable characteristics.
The Association held the following property and equipment as of December 31, 2023:
NOTE 3 – PROPERTY AND EQUIPMENT AND RELATED DEPRECIATION
The Association held the following property and equipment as of December 31, 2023: Land $ 700,000
The Association held the following property and equipment as of December 31, 2023:
The Association held the following property and equipment as of December 31, 2023:
Land $ 700,000
Building and building improvements 4,618,392
and computer equipment 2,085,552
Furniture and computer equipment 2,085,552
Total Property and Equipment 7,403,944
Land $ 700,000
Less: Accumulated Depreciation (5,252,211)
Total Property and Equipment 7,403,944
Building and building improvements 4,618,392
Less: Accumulated Depreciation (5,252,211)
Furniture and computer equipment 2,085,552
Property and Equipment, Net $ 2,151,733
Total Property and Equipment 7,403,944
Property and Equipment, Net $ 2,151,733
Depreciation and amortization expense was $165,554 for the year ended December 31, 2023.
Less: Accumulated Depreciation (5,252,211)
Depreciation and amortization expense was $165,554 for the year ended December 31, 2023.
Property and Equipment, Net $ 2,151,733
NOTE 4 – NET ASSETS
Depreciation and amortization expense was $165,554 for the year ended December 31, 2023.
NOTE 4 – NET ASSETS
Depreciation and amortization expense was $165,554 for the year ended December 31, 2023.
NET ASSETS WITHOUT DONOR RESTRICTIONS
NET ASSETS WITHOUT DONOR RESTRICTIONS
4
NOTE 4 – NET ASSETS
NET ASSETS WITHOUT DONOR RESTRICTIONS
As of December 31, 2023, the Association’s net assets without donor restrictions were composed of the following:
Net Assets Without Donor Restrictions
As of December 31, 2023, the Association’s net assets without donor restrictions were composed of the following:
As of December 31, 2023, the Association’s net assets without donor restrictions were composed of the following:
Undesignated $ 6,204,206
Undesignated $ 6,204,206
Board-designated life membership fund 1,607,907
As of December 31, 2023, the Association’s net assets without donor restrictions were composed of the following:
Board-designated life membership fund 1,607,907
Board-designated operating reserve 2,000,000
Board-designated operating reserve 2,000,000
Undesignated
$ 6,204,206
Total Net Assets Without Donor Restrictions $ 9,812,113
Board-designated life membership fund 1,607,907
Total Net Assets Without Donor Restrictions $ 9,812,113
NET ASSETS WITH DONOR RESTRICTIONS
Board-designated operating reserve 2,000,000
NET ASSETS WITH DONOR RESTRICTIONS
Net Assets With Donor Restrictions
Total Net Assets Without Donor Restrictions $ 9,812,113
As of December 31, 2023, net assets with donor restrictions were available for the following purposes:
NET ASSETS WITH DONOR RESTRICTIONS
As of December 31, 2023, net assets with donor restrictions were available for the following purposes:
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE
As of December 31, 2023, net assets with donor restrictions were available for the following purposes:
NARFE PAC – political contributions
$ 944,576 Alzheimer’s fund
As of December 31, 2023, net assets with donor restrictions were available for the following purposes:
PAC – political contributions
Total Net Assets With Donor Restrictions $ 987,029
Net Assets With Donor Restrictions
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023
NOTE 5 – REVENUE FROM CONTRACTS WITH CUSTOMERS
NOTE 5 – REVENUE FROM CONTRACTS WITH CUSTOMERS
The following table provides information about significant changes in the Association’s deferred membership revenue for the year ended December 31, 2023:
The following table provides information about significant changes in the Association’s deferred membership revenue for the year ended December 31, 2023:
Deferred membership revenue, beginning of year
$ 3,564,781 Membership revenue recognized that was included in deferred membership revenue at the beginning of year (2,321,268) Increase in deferred membership revenue due to cash received during the period 2,304,021
Deferred Membership Revenue, End of Year
NOTE 6 – RISKS AND COMMITMENTS
NOTE 6 – RISKS AND COMMITMENTS
$ 3,547,534
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK
The Association maintains its cash and cash equivalents with a certain commercial financial institution, which aggregate balance, at times, may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit of $250,000 per depositor per institution. As of December 31, 2023, the amount in excess of the maximum limit insured by the FDIC was approximately $1,743,000. The Association monitors the creditworthiness of this institution and has not experienced any credit losses on its cash and cash equivalents.
INVESTMENT RISK
The Association maintains its cash and cash equivalents with a certain commercial financial institution, which aggregate balance, at times, may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit of $250,000 per depositor per institution. As of December 31, 2023, the amount in excess of the maximum limit insured by the FDIC was approximately $1,743,000. The Association monitors the creditworthiness of this institution and has not experienced any credit losses on its cash and cash equivalents.
The Association invests in mutual funds, certificates of deposit, exchange-traded funds and corporate bonds. These investments are exposed to various risks, such as interest rate, market volatility, and credit risks. Market risks include global events which could impact the value of investment securities, such as pandemic or international conflict. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the Association’s consolidated financial statements.
INVESTMENT RISK
The Association invests in mutual funds, certificates of deposit, exchange-traded funds and corporate bonds. These investments are exposed to various risks, such as interest rate, market volatility, and credit risks. Market risks include global events which could impact the value of investment securities, such as pandemic or international conflict. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the Association’s consolidated financial statements.
NOTE 7 – 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, 2023, were as follows:
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, 2023, were as follows:
Cash and cash equivalents
$ 2,149,856
Accounts receivable 182,712
Investments 10,538,296
Total Financial Assets Available Within One Year 12,870,864
Less:
Amounts unavailable for general expenditures within one year due to donor’s restriction with purpose restriction (987,029)
Financial Assets Available to Meet
General Expenditures Within One Year $ 11,883,835
NOTE 7 (CONT.)
The Association has various sources of liquidity at its disposal, including cash and cash equivalents and investments, which are available for general expenditures, liabilities and other obligations as they come due. Management is focused on sustaining the 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 8 – PENSION PLAN
The Association has various sources of liquidity at its disposal, including cash and cash equivalents and investments, which are available for general expenditures, liabilities and other obligations as they come due. Management is focused on sustaining the 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.
compensation. Total contributions made by the Association were approximately $53,400 for the year ended December 31, 2023.
NOTE 9 – 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 $114,000 for the year ended December 31, 2023.
31, 2023, and determined that there were no matters that would require recognition in the consolidated financial statements or that may have an effect on its tax-exempt status. As of December 31, 2023, there are no audits for any tax periods that are currently pending or in progress. It is the Association’s policy to recognize interest and/ or penalties related to uncertainty in income taxes, if any, in income tax or interest expense. As of December 31, 2023, the Association had no accruals for interest and/or penalties.
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.
NOTE 10 – PRIOR YEAR SUMMARIZED FINANCIAL INFORMATION
NOTE 8 – PENSION PLAN
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
NARFE PAC is subject to federal income taxes under IRC Section 527 with respect to certain investment income. For the years ended December 31, 2023 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 threshold of “more likely than not” for recognition and derecognition of tax positions taken or expected to be taken in a tax return.
The Association performed an evaluation of uncertainty in income taxes for the year ended December
17
The accompanying consolidated 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, 2022, from which the summarized information was derived.
NOTE 11 – SUBSEQUENT EVENTS
The Association’s management has evaluated, for potential recognition or disclosure, events and transactions through May 7, 2024, 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.
Consolidating Schedule of Financial Position
December 31, 2023
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION AND AFFILIATE
CONSOLIDATING SCHEDULE OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2023
Consolidating Schedule of Activities for the Year Ended December 31, 2023
(Previously Office Depot/Office Max)
Use your NARFE Perks and your membership will more than pay for itself!
See how much you can save at www.NARFE.org/memberperks
Exclusive Offer for NARFE Members: NARFE members can enjoy discounted monthly monitoring rates, $0 installation fees, reduced activation fees, and a $500 equipment voucher for customizing their security and smart home systems with ADT monitoring. Enhance your home security with these exclusive benefits tailored just for you. Select the link for more details and fill out the contact page to speak to a security expert and place your order.
BMG Money | https://www.narfe.org/narfe-perks-for-members/bmg-money/ BMG Money is the better loan solution for federal government employees and retirees who are working on improving their credit scores. Apply in minutes regardless of credit score with instant funding available. All credit scores are encouraged to apply with higher acceptance rates.
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
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
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 | https://www.purchasingpower.com/?domain=narfe
While not a discount program, Purchasing Power is an exclusive purchase program helps members buy brandname computers, electronics, appliances and furniture via annuity allotment when cash is not an option. No credit check or down payments.
WELLNESS
Active&Fit Direct | https://www.narfe.org/narfe-perks-for-members/activefit-direct/ Stay active from anywhere for $28/mo. Active&Fit Direct includes 12,200+ Gyms, 9,300+ On-Demand Videos and 1:1 Well-Being Coaching. A fitness program with no annual fees and no long-term contracts. Switch gyms anytime. Membership options for your spouse. No Enrollment Fee With Promo Code: STAYSTRONG
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
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
PRE-PLANNING
Neptune Society | 800-NEPTUNE (637-8863) | https://www.neptunesociety.com/NARFE
Our prearranged plans cover all necessary expenses for one guaranteed price even if the services are not needed for 40 or 50 years. The Neptune Society offers a $100 discount to all NARFE members. *Discounted offer is not valid for residents of Louisiana, Tennessee and Kentucky. Void Where Prohibited.
NARFE Members Save 10% with 1-800-GOT-JUNK? Do you have old furniture, appliances, electronics, construction debris, yard waste or other junk you need to make disappear? 1-800-GOT-JUNK? can take away almost any material we can fit in our trucks, without you ever lifting a finger—all you have to do is point! Use code NARFE10 when you book. To get started, give us a call or book online.
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
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.
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 | www.hotelengine.com/join/24530f9
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 | https://partners.rentalcar.com/narfe/
NARFE members receive great rates with National Car Rental! At National, we pride ourselves on always providing you with unsurpassed convenience and choices. To make a reservation, call National Car Rental and reference Contract 5282909.
Designed exclusively for NARFE members, (plans administered by AMBA Administrators, Inc.) Senior Age Whole Life Insurance, Senior Term Life Insurance, Hospital Indemnity 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.
ADDITIONAL PERKS
Assisting NASA’s Astronauts
NASA’s suit technician, Joe Schmitt, checks astronaut Scott Carpenter’s spacesuit before a spaceflight out of Cape Canaveral, FL. Two days later, on May 24, 1962, Mercury-Atlas 7 launched as the fourth crewed flight of Project Mercury. Behind every NASA mission, then and now, are hundreds—and at times thousands—of support staff, including suit technicians who ensure the astronauts’ space suits are functioning properly.
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.
DID YOU KNOW?
In 1967, NASA turned the Aurora 7 spacecraft over to the Smithsonian Institution’s Air Museum, the forerunner of today’s National Air and Space Museum in Washington D.C. The museum loaned it to other facilities on a temporary basis, finally in 1986 to the Museum of Science and Industry in Chicago, where it remains on display today.
For more information, visit www.nasa.gov/history/60-yearsago-scott-carpenter-orbits-theearth-aboard-aurora-7/
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.
To learn more* about the NARFE Insurance Services-sponsored program, call 1-800-233-5764 or visit us at www.narfeinsurance.com
