July 2013 NARFE Magazine

Jul

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COVER STORY

Disputing Decisions When to Make a Federal Case of It

P.30

P.36

Life Insurance, The Forgotten Benefit

P.42

Using an IRA for Charitable Giving

Volume 89 • Number 07

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WashingTon Watch

8

Sequester Could Stymie OPM’s Progress on Retirement Processing

9

Debt-Limit Deadline Retreats as Deficit Picture Improves

10 House Holds Hearing on Chained CPI and COLAs

11 Bill to Fire Tax-Delinquent Feds Fails in the House

12 Tips on Town Hall Meetings

14 Furloughs Begin, But Application Varies

15 Bill to Dismantle FEHBP Introduced in the House

30

16 GPO/WEP Repeal Bills

Filed in the House, Senate

Cover Story Disputing Decisions. Many federal workers and retirees have appealed personnel and benefits decisions, but the journey is often time-consuming, and victory is far from assured.

18 NARFE Bill Tracker 20 NARFE Participates in

FEHBP Advisory Group

20

Electronic 1099-Rs

Columns

36

4 The Forgotten Benefit. Feds tend to pay little attention to their Federal Employees’ Group Life Insurance coverage until premiums start rising.

JUL

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COVER STORY

www.narfe.org like us on facebook:

NARFE National Headquarters follow us on twitter:

@narfehq

42 Managing Money 44 The Informed Citizen DEPARTMENTS

22 Questions & Answers

On the Web visit us online at:

From the President

DISPUTING DECISIONS When to Make a Federal Case of It

P.30

46 For the Record: TSP

Investments, COLA Chart

50 NARFE News P.36

LIFE INSURANCE, THE FORGOTTEN BENEFIT

P.42

USING AN IRA FOR CHARITABLE GIVING

56 The Way We Worked

ON THE COVER

Illustration by Bill Pragluski, Critical Stages, LLC

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JUly 2013 | Volume 89 | Number 07

Editor Margaret M. Carter Assistant Editor Donna J. St. John Editorial Administrator Toni Vallario Graphic Design Charlene Gridley Editorial Board Joseph A. Beaudoin, Paul H. Carew, Elaine C. Hughes, Richard G. Thissen Editorial Office: narfe magazine, 606 North Washington St., Alexandria, VA 22314-1914; Phone: 703-838-7760; Fax: 703-838-7781; Email: communications@narfe.org Advertising Sales: Warren Berger, Media People Inc., 122 East 42nd St., Suite 725, New York, NY 10168; Phone: 212-779-7172, ext. 223; Email: wberger@mediapeople.com NARFE for the Visually Impaired On the Telephone: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-5047300 or go to www.nfbnewsline.org.

On Tape: Issues of narfe magazine are also available on cassette through the National Library Service for the Blind and Physically Handicapped. To find out about availability in your area, call 800-424-8567 and ask for the Reference Section.

The Association, since July 1970, has been classified by the IRS as a tax exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

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

REGIONAL VICE PRESIDENTS

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

Here’s How to Contact Us… If you want to:

Join NARFE Call (toll-free): 800-627-3394 or go to: www.narfe.org Change or update your membership record Call (toll-free): 800-456-8410 Email: memberrecords@narfe.org

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

For any other NARFE matter:

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

www.narfe.org

narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $45. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2013, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in narfe, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President

Retirement claims backloG

O

ne of the key advantages of NARFE membership is the availability of help with benefits

questions. Members can seek assistance from NARFE’s staff of federal benefits specialists by phone, email or postal mail.

Not only does this help the individual member, it allows us to keep our finger on the pulse of the federal family.

Last year, I testified before a Senate subcommittee that NARFE was receiving hundreds of calls from members complaining about retirement claims processing. At that same hearing, the Office of Personnel Management (OPM) announced a strategic plan to cope with its retirement claims backlog and what it acknowledged were “unacceptable delays” in processing.

Recently, I was invited to testify before a House subcommittee on the same issue. Giving credit where it was due, I reported that NARFE has noticed a considerable decline in complaints, and I complimented OPM on making remarkable improvements. But I also warned that OPM’s recent actions — taken as a result of the acrossthe-board sequestration spending cuts – to reduce its call-center hours and halt overtime for employees processing claims threaten to revive complaints and impede progress on the backlog.

The testimony is highlighted in this issue on p. 8.

This month’s cover story looks at how federal employees can appeal adverse personnel and benefits decisions. Due process is available; here’s how to get it. Our second feature highlights the “forgotten benefit,” the Federal Employees’ Group Life Insurance Program. Don’t let this be an afterthought in your financial planning.

The fight to preserve our earned benefits is far from over. If you have an email address, I urge you to make sure that we have it in your NARFE member record. If we do not have your email address, we cannot contact you when a rapid response is needed. Go to www.narfe.org, sign in as a member (your ID number is on the label of this magazine) and click on “Update My Record” on the left side panel. Please do it now.

Joseph A. Beaudoin NARFE national President natpres@narfe.org

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(2013 benefit.) Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in the Service Benefit Plan brochure.

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

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Washington Watch

Sequester Could Stymie OPM’s Progress on Retirement Processing

T

he Office of Personnel Management’s timeliness in handling retirement claims was the focus of a May 9 hearing before the House Oversight and Government

Reform Subcommittee on the Federal Workforce, U.S. Postal Service and the Census. NARFE President Joseph A. Beaudoin testified on behalf of federal employees and retirees.

Beaudoin cited improvements made by the Office of Personnel Management (OPM) in speeding processing time and reducing the retirement backlog. “Let’s give credit where credit is due,” he said. “OPM laid out a strategic plan that predicted improvements in claims processing through additional staff, longer call-center hours and better communication with agencies. OPM implemented the plan as intended, and it has worked.”

But he warned that sequestration will hamper OPM’s ability to reduce the backlog. “With overtime reductions planned as a result of budget cuts, it now seems doubtful that OPM will be able to reach the goals of its strategic plan, despite the substantial 8

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progress that has been made,” he said. “This is a huge setback in an otherwise successful story.” OPM announced just before the hearing that sequestration had forced the agency to reduce its callcenter hours and halt overtime for employees processing annuity claims.

Beaudoin also pointed out that a federal retirement wave could negate the progress that OPM has already made. “As a result of much higher than expected retirements in February and March, the claims inventory is higher than projected. In fact, in three of this year’s first four months, the number of federal employees filing retirement claims outpaced OPM’s projections,” he said. “Given the ongoing retirement wave, this

NARFE President Joseph A. Beaudoin, right, testifies during a House hearing on OPM retirement processing.

Mike Theiler

trend is likely to continue.” He warned that retirement-eligible workers’ desire to retire before Congress asks them to sacrifice more could exacerbate this trend.

This could contribute to a loss of institutional knowledge within the federal government, he added.

While recognizing improvements, Beaudoin insisted that OPM has more work to do. “There is still an inventory of more than 30,000 claims, and waits continue to be too long. We implore Congress to take notice of the very real effects that austerity budgeting is having on government services, including the ones on which our career civil servants rely.”

Other witnesses, pictured left to right in the photo above, were: Kenneth Zawodny, OPM associate director, Retirement Services; Valerie C. Melvin, director, Information Management & Technology Resources Issues, Government Accountability Office; and George Kettner, president and CEO, Economic Systems Inc. Not pictured was Patrick McFarland, OPM inspector general.

Zawodny said OPM had reduced

debt-limit deadline retreats as deficit picture improves the claims inventory by 57 percent and the average time to process a claim from 156 to 136 days in 2012, after putting its strategic plan into action. Over the first four months of 2013, OPM experienced unprecedented increases in retirement applications, he said, but OPM employees still processed a record number of claims during that period.

Subcommittee members expressed concern about OPM’s attempts to modernize the retirement process, based on previous failed attempts. OPM told subcommittee members that, instead of comprehensive retirement modernization efforts, it is pursuing incremental information technology improvements.

Zawodny said OPM is establishing the capability of gathering electronic data from the retirement applicant, and then feeding it and data from agency human resources and payroll to a benefit calculator. “These represent the critical first steps in a long modernization journey,” he said.

He added that OPM included $2.6 million in its fiscal year 2014 budget request to begin development of a Case Management System for centralized tracking of, and reporting on, retirement documents and cases.

NARFE supports an incremental approach to modernizing. This lower-risk strategy will allow OPM to adjust to problems that may arise.

—By Jessica Klement, Legislative director

I

n order to bring the 112th Congress to a close at the end of 2012, lawmakers and a newly reelected President Obama enacted a temporary increase in the debt limit, permitting financing through May 18.

At that time, the expectation was that, based on the recent historic levels of deficit spending, the deadline – combined with the Treasury Department’s use of “extraordinary measures” (including tapping the Civil Service Retirement and Disability Trust Fund) – would mean a need to legislate a debt-limit increase before the August congressional recess.

It now appears that the deadline may not hit until late September or even after the start of fiscal year 2014 on October 1. Why the delay?

The deficit picture has improved.

Revenues have been collected at record levels, and federal expenditures have decreased, at least in part as a result of sequestration budget cuts.

But stung by the effects of sequestration and the public outcry over delays and long lines at airports, a growing number of members of Congress have voiced their support for abandoning the sequestration approach – which will come into play every fiscal year through 2022 – but only if lawmakers agree to an alternative approach to savings.

On May 9, the House, by a vote of 221-207, passed the Full Faith and Credit Act (H.R. 807). The measure would require the federal government to pay principal

and interest on the public debt and Social Security Trust Funds before paying its other bills, should the debt limit be reached. Opponents of the measure argued that it would wrongly prioritize paying off bondholders, including foreign governments, over federal workers, veterans and those who do business with the federal government.

From sequestration in the coming years to the Chained CPI (see story, p. 10) to the debt ceiling, NARFE members must remain vigilant as to how these congressional actions can affect them. Reaching out to your members of Congress has never been more important.

—By Alan Lopatin, Legislative counsel

advocacy action Save the Date: Congressional Call-In Week, September 16-20 NARFE WILL HOST a National Congressional Call-In Week September 16-20.

The coordinated effort will magnify the voices of federal employees and retirees on Capitol Hill and ensure that they are heard loud and clear.

NARFE will provide scripts, tips and phone numbers.

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Washington Watch

house holds hearing on chained cPI and COLAS

T

he proposal to switch from the CPI-W to the Chained CPI as a way to calculate cost-of-living adjustments (COLAs) was the focus of an April 18 hearing of the

House Ways and Means Subcommittee on Social Security. The idea has received support from both sides of the congressional aisle and was included in President Obama’s proposed budget for fiscal year 2014 as a bargaining tool to encourage Republicans to agree to raise taxes as part of a “grand bargain” deficit-reform package. It also was included in the 2010 Simpson-Bowles Fiscal Commission report.

Switching to the Chained CPI would reduce COLAs for Social Security benefits, federal annui-

MYTH vs.

REALITY

Myth: The federal workforce is larger than ever.

Reality: There are fewer federal employees per U.S. resident since before the Kennedy administration.

With a total U.S. population of approximately 315.87 million and a federal workforce of 2.6 million employees, federal employees make up less than 1 percent of the population. The most feds per capita was under the Kennedy administration, 1.3 percent. The highest number of employees, 3.13 million, was under President George H.W. Bush.

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ties, military retired pay, disabled veterans’ benefits and disability insurance benefits. It would have a negative compounding – or snowballing – effect, meaning that those who retire at a younger age (the military), those who receive disability benefits and those who live the longest will be hit the hardest.

In written testimony, NARFE President Joseph A. Beaudoin urged subcommittee members to oppose proposals to substitute the Chained CPI for the current method using the CPI-W. “Do not be misled,” he said, “the Chained CPI is not a more accurate measure of inflation for seniors.”

Led by Chairman Sam Johnson, R-TX, subcommittee Republicans praised the president for including the Chained CPI in his budget and showed their support for the proposal as one way to improve the solvency of Social Security.

Proponents argue that the Chained CPI is more accurate than the CPI-W in measuring COLAs. They also dismissed the experimental Consumer Price Index for the Elderly (CPI-E), which takes

into account seniors’ spending when determining COLAs, saying it is inaccurate and has not been studied thoroughly.

Meanwhile, Democrats – led by Ranking Member Xavier Becerra, D-CA – expressed concern about paying down the deficit “on the backs of seniors,” and argued that neither the CPI-W nor the Chained CPI accurately reflects seniors’ spending. Instead, Democrats indicated support for the CPI-E, which reflects the principal costs most seniors face, including health care. Seniors spend 12 percent of their income on health care, compared with 5 percent spent by those age 62 and younger. In addition, health care inflation was 3.7 percent in 2012, while the CPI-W indicated the average price of consumer goods increased 1.7 percent.

The Chained CPI assumes consumers will make substitutions, but Democrats argued that seniors cannot make substitutions as easily with health care. If the price of a medication increases, seniors cannot always substitute with a different medication; instead, they may have to do without.

Members of both parties suggested that the Chained CPI needs to be part of a greater debate on comprehensive Social Security reform. Democrats were very concerned that a piecemeal approach will be taken when reforming Social Security, while Republicans stated that the longer Congress waits to reform Social Security, the more difficult it will be to do so.

—By Jason Freeman, Legislative staff assistant

bill to fire tax-delinquent feds fails in the House on filing day The House defeated a bill that would have allowed the firing of federal employees who fall behind on their taxes. The bill also would have prohibited the hiring of any federal job applicant who has a seriously delinquent tax debt, defined as an outstanding tax debt for which a notice of lien has been filed in public records.

The bill was brought to the House floor on April 15, a symbolic gesture on tax-filing deadline day. It was considered under “suspension of the rules,” which requires a two-thirds’ majority

vote, rather than a simple majority, to pass. The 250-159 vote in favor was less than the two-thirds majority vote necessary for passage.

The Federal Employee Tax Accountability Act of 2013 (H.R. 249), was introduced by Rep. Jason Chaffetz, R-UT. “Federal employees who are delinquent on their taxes should not be employed by the federal government,” Chaffetz said.

However, Rep. Gerald E. Connolly, D-VA, called the bill “a solution in search of a problem.”

Connolly argued that federal

employees have a far higher rate of tax compliance than the general population. He also noted that the filing of a lien can be done within 10 days of failure to pay taxes on time.

Opponents also pointed out that the legislation fails to set forth a mechanism to recoup the owed taxes. Terminating someone’s employment all but guarantees that the federal government would never recover the money owed.

In 2012, the House passed a similar bill, but the Senate did not act on the measure.

—By Jessica Klement, Legislative Director

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Washington Watch

TIPS on Town Hall Meetings; Attend at least one in August!

M

any members of Conput on the notification list. gress will schedule town When you attend a town hall, hall meetings during the wear something that shows that August congressional recess, Auyou are a NARFE member and gust 5-September 6. These events a federal employee, retiree or allow you to put a local face on survivor. You can bring materials NARFE issues and are a recomto leave with the member of Conmended activity during “NARFE gress’ staff. Know how the legislator has voted on NARFE issues Grass-Roots Advocacy Month.”

You can access town hall sched- by visiting the Legislative Action Center (click on “Legislation” on ules at www.narfe.org (under the left of the Main Home Page).

“NARFE Legislative Activists” on Here are questions NARFE the Legislation Home Page) or by members may want to ask: contacting your legislators’ offices.

• Federal employees will have Many offices host tele-town halls contributed $114 billion over the where the entire meeting is held 2013_Cong_Dir_Ads_Layout 3 copy 9:09 AM Page next 101years to help reduce the over the phone. Call your5/29/13 member deficit, the only group asked to of Congress’ office and ask to be

make such a large sacrifice. What are you doing to ensure that cuts will no longer unfairly target federal employees and retirees?

• The proposal to change to the Chained CPI for the calculation of cost-of-living adjustments would reduce benefits for seniors, who live on tight incomes and face health care costs that rise higher than inflation. Do you support the Chained CPI? If yes, why?

• What are you doing to find an alternative to across-the-board cuts that have resulted in furloughs?

—By Sarah Holstine, grass-roots program manager

NARFE’s

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Washington Watch

protect america’s heartbeat update NARFE’s Legislative Department has been working since 2011 with M+R Strategic Services to expand the Association’s grass-roots advocacy efforts.

In April, NARFE signed an extension of its agreement with M+R to provide services through the current legislative budget battle.

An important aspect of the campaign is to expand NARFE’s own capability to mount effective grass-roots campaigns. The Legislative Department has spent the last few months gathering information on how NARFE federations handle their grass-roots and legislative activities, and developing a plan to fully use the federations’ strengths, while building in other areas where possible. One of the priorities of the department is to provide more training to grass-roots leaders so that they have the tools and confidence to maintain NARFE’s ongoing legislative outreach.

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Furloughs Begin, But application varies During April, employee furloughs began at many agencies as the across-the-board budget cuts known as sequestration started to take effect.

But an outcry from members of Congress who were trying to get home for the congressional recess, plus similar grumblings from fliers, led to swift action to give the Federal Aviation Administration (FAA) the authority to shuffle funds to prevent furloughs, and put air traffic controllers and other employees back to work.

Similarly, food safety inspectors at the Department of Agriculture were able to avoid furloughs because of language included in legislation funding the government through September.

Customs and Border Protection also was able to avoid furloughing employees, as was the Transportation Security Administration and the Bureau of Prisons, thanks to additional authority from Congress. The Department of Veterans Affairs is mostly exempt from sequestration.

This “cherry picking” among federal agencies has caused complaints by federal employees who work at less visible agencies.

At the same time that FAA employees were returning to work, 17,000 Environmental Protection Agency workers, 480 Office of Management and Budget employees and at least 760 U.S. Park Police were being forced to take a minimum of 10 days of unpaid leave. And that’s just the beginning.

The Internal Revenue Service and the Department of Housing and Urban Development will shut down completely for five and seven days, respectively, before the end of the fiscal year, and other employee furloughs are possible.

Furloughs at the National Oceanic and Atmospheric Administration also are slated to begin on July 5, just in time for summer storms, tornados and the hurricane season.

The Department of Defense (DOD), the largest federal agency, originally scheduled 22 furlough days, but subsequently reduced that to 11 days. DOD furloughs are slated to start July 8 for most employees.

Other locations where furloughs are likely (but notices had not yet been sent out by our deadline) include the federal courts, the Department of Homeland Security, the Department of Education, the Department of the Interior and the National Aeronautics and Space Administration.

Some agencies have announced that they can absorb the cuts as a result of sequestration without furloughs. Those agencies are the Department of State, the Government Accountability Office, the Department of Justice and the Office of Personnel Management.

Many federal employees do not yet know their futures. Some agencies have not commented publicly as to whether they will have to impose furloughs as a means to absorb the budget cuts.

—By Jessica Klement, Legislative Director

Bill to Dismantle FEHBP Introduced in House

A

bill that would remove all federal employees from the Federal Employees Health Benefits Program (FEHBP) and require them to buy health insurance through the exchanges created by the Affordable Care Act (ACA) was introduced in the House in April.

NARFE strongly opposes the bill, saying it would “dismantle the FEHBP and use federal employees as pawns in the neverending battle over the ACA.” House Ways and Means Committee Chair Dave Camp, R-MI,

and 11 Republican cosponsors, introduced H.R. 1780 amid rumors that members of Congress are seeking to exempt themselves and their staffs from entering the exchanges, which they are mandated to do in 2014 under the ACA. Camp’s bill would force the president, vice president and Title 5 federal employees into the exchanges. Active-duty military members and postal employees would be excluded.

“By removing active employees from the FEHBP and reducing the pool size, rates would skyrocket for retired federal employees, who

would remain in the FEHBP,” NARFE said. “In addition, active federal employees would no longer be eligible for FEHBP coverage in retirement because they would not meet the requirement that they be enrolled for their last five years, essentially ensuring that the FEHBP would cease to exist in the future.”

It is unlikely that the bill will move through Congress. NARFE urges members to contact their legislators through the Legislative Action Center at www.narfe.org.

(Click on “Legislation” on the left of the Main Home Page.)

—By Jessica Klement, Legislative Director

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Washington Watch

GPO/WEP repeal Bills once again filed in House, Senate

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egislation to repeal the tant to consider the bills unless Government Pension Offset they are part of comprehensive (GPO) and Windfall ElimiSocial Security reform. nation Provision (WEP) has again Rep. Rodney Davis, R-IL, and been introduced in Congress. cosponsor Rep. Adam B. Schiff, NARFE has long worked with the D-CA, introduced the Social SeCoalition to Assure Retirement curity Fairness Act of 2013 (H.R. Equity (CARE), which it helped 1795) in the House on April 26.

Sen. Mark Begich, D-AK, introcreate in 1991, to repeal or reform these provisions of Social Security duced the Senate companion bill (S. 896) on May 8. law. CARE is comprised of more The WEP greatly reduces the than 45 national, state and local Social Security benefits of approxorganizations, and its sole purimately 1.4 million federal retirees pose is to address the GPO and who worked in Social SecurityWEP disparity. covered employment and who All past legislation has failed as 2013-14_PAC_Coupon:2013 Coupon 3/26/13 3:42 PM Page 1 also receive an annuity based on key lawmakers have been reluc-

their non-Social Security-covered government job.

The GPO prevents more than half a million federal retirees who receive a government annuity based on their work in non-Social Security-covered employment from getting Social Security benefits based on their spouse’s work.

Encouraging cosponsorship is vital and creates a starting point for eventual consideration.

NARFE members can send a letter to their legislators through the Legislative Action Center on the NARFE website, www.narfe.org. —By jason freeman, Legislative staff assistant

NARFE-PAC CONTRIBUTION FORM Name:______________________________________ NARFE Member Number: _______________________ I would like to make a one-time contribution of: $100 Gold (qualifies for Gold 2013-14 NARFE-PAC lapel pin and a blue NARFE-PAC LEADER hat)

$50 Silver (qualifies for Silver 2013-2014 NARFE-PAC lapel pin) $20 Basic (qualifies for Basic 2013-2014 NARFE-PAC lapel pin) Other: ______ -orI would like to be a Sustainer and make a monthly credit card contribution to NARFE-PAC of: $25/month $10/month

Please find my check or money order enclosed payable to NARFE-PAC Please charge to my credit card (required for monthly contribution) Credit Card Information Type: MasterCard Visa Discover AMEX Card #: ________________________________ Expiration Date: ____ / ____ Name on Card:__________________________ Signature: ______________________________ Date: __________________________________

Other: ______/month (minimum of $10) Monthly contributions qualify you to receive a NARFE-PAC Sustainer lapel pin along with a blue NARFE-PAC LEADER hat.

I do not want to receive any gifts for my contribution marked above.

Mail to: National Active and Retired Federal Employees Association Attn: NARFE-PAC 606 North Washington St. | Alexandria, VA 22314

Only members of the National Active and Retired Federal Employees Association may contribute to NARFE-PAC. NARFE will neither favor nor disadvantage anyone based on the amount of a contribution or the failure to make a voluntary contribution to this political action fund. NARFE-PAC contributions are not deductible for federal income tax purposes.

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Washington Watch

narfe bill tracker The NARFE bill TRACKER is your monthly guide to the congressional legislation that NARFE is keeping an eye on. Check back each issue for updates.

ISSUE

Bill Number / Name / What Bill Would Do Sponsor H.R. 26: Deferred Benefits Adjustment Act of 2013 / Rep. Nydia M. Velázquez, D-NY

Provides for the inReferred to the House dexation of deferred Committee on Oversight and annuities, including Government Reform survivor annuities, and for individuals becoming subject to the FERS by election. Terminates the entitlement of a survivor who remarries before age 55 (currently, who remarries at any age) to an annuity based on the service of a deferred annuitant who dies before establishing a valid claim for a CSRS annuity.

H.R. 249: Federal Employee Tax Accountability Act of 2013 / Rep. Jason Chaffetz, R-UT

Makes any person who has a “seriously delinquent tax debt” (an outstanding tax debt for which a notice of lien has been filed in public records) ineligible for federal employment or to continue serving as a federal employee.

H.R. 517: To provide that four of the 12 weeks of parental leave made available to a federal employee shall be paid leave / Rep. Carolyn B. Maloney, D-NY

Allows federal employReferred to the House ees to substitute any Committee on Oversight and available paid leave Government Reform for any leave without pay available for either the birth of a child or placement of a child with the employee for either adoption or foster care. Makes available four administrative weeks of paid parental leave in connection with the birth or placement involved.

H. Con. Res. 25: Fiscal year 2014 Budget Resolution / Rep. Paul D. Ryan, R-WI

Among other things, re- Passed the House on 3/21/13 duces the federal workforce by 10 percent through attrition and increases the amount that federal employees contribute toward their retirement.

DEFERRED ANNUITIES

Tax Delinquency

Paid Parental Leave

Retirement Calculations/ Contributions

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Latest Congressional Action(s)

Approved by the House Committee on Oversight and Government Reform on 3/20/13 Failed to pass the House on 4/15/13 See story, p. 11

ISSUE

federal pay

Bill Number / Name / Sponsor

GPO/WEP

Latest Congressional Action(s)

H.R. 933: Fiscal Year 2013 Continuing Appropriations Act / Rep. Harold Rogers, R-KY

Funds the federal govern- Signed into law on 3/26/13 ment for the remainder of (P.L. 113-6) fiscal year 2013 (through September 30, 2013) at sequestration levels. Freezes federal pay for a third year (2013).

H.R. 1367: FEHBP Prescription Drug Integrity, Transparency, and Cost Savings Act / Rep. Stephen F. Lynch, D-MA

Provides the Office of Personnel Management greater oversight authority over the prescription drug contracting and pricing methods of the Federal Employees Health Benefits Program (FEHBP).

It requires that pharmacy benefit managers (PBMs), who currently contract with individual insurance plans to provide FEHBP prescription drug benefits, return 99 percent of all rebates, market share incentives and other monies received from pharmaceutical manufacturers for FEHBP business and caps prescription drug prices paid by the FEHBP.

Referred to the House Committee on Oversight and Government Reform

H.R. 1780: To provide that the only health plans that the federal government may make available to the president, vice president, members of Congress and federal employees are those created under the Patient Protection and Affordable Care Act or offered through a health insurance exchange / Rep. Dave Camp, R-MI

Removes federal employees from the Federal Employees Health Benefits Program (FEHBP) and places them in the health exchanges created under the Affordable Care Act.

Referred to the House Committees on Oversight and Government Reform, Energy and Commerce, and Administration See story, p. 15

H.R. 1795: Social Security Fairness Act of 2013 / Rep. Rodney Davis, R-IL S. 896: Social Security Fairness Act of 2013 / Sen. Mark Begich, D-AK

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

Referred to the House Committee on Ways and Means.

Referred to the Senate Finance Committee See story, p. 16

Health Care

Health Care

What Bill Would Do

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Washington Watch

NARFE Participates in FEHBP Advisory Group

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n May, NARFE participated in the inaugural meeting of the Federal Employees Health Benefits Program (FEHBP) Advisory Group as one of its members. The Office of Personnel

Management (OPM) created the informal group in response to calls from federal employee and retiree groups to discuss key FEHBP issues and policy decisions.

In semiannual meetings, NARFE and the other organizations will provide feedback to OPM on FEHBP policies and how they could affect their members.

The focus of the first meeting was on the FEHBP proposals contained in President Obama’s fiscal year 2014 budget proposal to Congress. These include: • Expansion of FEHBP to allow for additional plans; • Increase in contracting discretion over prescription drugs; • Increase in participant options, including a “self plus one” option and coverage of domestic

partners; and • Premium differentials tied to wellness.

NARFE members long have called for a self plus one option because the current structure is restricted to self-only or family coverage, meaning a family of three or more pays the same premiums as a two-person household. The estimated cost savings from a self plus one option add up to more than $5 billion.

At the meeting, NARFE expressed concerns about wellness programs that provide incentives for healthier living, cautioning

Legislative Resources • Legislative Hotline: A weekly update of legislative news, compiled by the NARFE Legislative Department staff, distributed via email and available by phone (toll-free) at 877-217-8234 and online at www.narfe.org.

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

that they must not come at the expense of an individual’s privacy.

NARFE needs more information on how these programs would be implemented before taking a position on them.

—By Jessica Klement, Legislative Director

OPM Advises How to ‘Opt-in’ to receive electronic 1099-R Editor’s Note: NARFE is pleased to help the Office of Personnel Management (OPM) inform federal retirees about the option to receive their 1099-R tax form electronically. The information below was provided to NARFE

by OPM. Starting January 2014, the Office of Personnel Management is allowing retirees to opt-in to receive their 1099-R through their Services Online account.

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This safe and secure way to receive a 1099-R is one way OPM is improving service to all retirees. This added benefit will allow retirees to receive their 1099-R sooner. To take advantage of this new feature, simply sign up using your Services Online account by December 23.

To sign up for this new offering or to access your Services Online account, use your web browser and type in https://www.servicesonline.

opm.gov/. Don’t worry if you don’t remember your password; if you don’t have it, you can request one once you access Services Online.

While in Services Online, register your email address to receive updates throughout the year. You also will be able to receive your password change via email if you have a valid email address associated with Services Online.

—Office of Personnel Management

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The warm water, the energizing bubbles and the gentle hydrotherapy of the jets left you feeling relaxed and rejuvenated. Aches and pains seemed to fade away, and the bubbling sound of the water helped put you in a carefree and contented mood. The first time I ever got in a hot tub at a resort, I said to myself “One of these days I’m going to have one of these in my home– so I can experience this whenever I want.” Now that I’m older, I’d still like to have the pain relief and relaxation, but I have to be careful about slipping and falling in the bathroom.

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Questions & Answers

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

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

active employees Dependents and FEHBP

Q

My dependent under my Federal Employees Health Benefits Program (FEHBP) plan is no longer eligible for coverage. The Office of Personnel Management (OPM) sent me a form to use to have her convert to a private individual policy through my FEHBP plan. I called the plan for information, but the customer service representative I spoke with didn’t seem to know what I was talking about. I only have a limited time to make this conversion. Do you have any suggestions?

A

Most of the FEHBP plan brochures discuss what happens when you or a dependent lose coverage. In every brochure that we reviewed, the plan instructions state that you must write to the plan to get information and enroll in a private plan under the conversion rules. Using the plan’s card or the information in the plan’s brochure, we suggest you write to the plan and include

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a copy of the form that OPM sent to you.

MRA+10 Retirement

Q

I am under the Federal Employees Retirement System (FERS) and am thinking of retiring in the near future. I’m not clear what the benefits would be if I retire under a minimum retirement age (MRA)

+10 and then postpone receipt of my retirement.

A

Under FERS, when you retire at your MRA with fewer than 30 years of service, your annuity would be reduced for age, and that reduction is permanent. When you elect to postpone receipt of your annuity, you can avoid the permanent reduction in your monthly annuity because of age.

For instance, if you had 20 years of eligible service but were under age 60 at retirement, you could postpone receipt of your annuity until you turn age 60 or anytime after and get your full earned annuity.

During the period of time between the date you retire and the date you inform the Office of Personnel Management that you want your annuity payments to begin, your Federal Employees’ Group Life Insurance enrollment

will stop. Your enrollment in the Federal Employees Health Benefits Program also will stop. Once your annuity begins, you can again enroll in both programs, assuming that you were eligible to continue them into retirement when you retired.

TSP Withdrawals

Q

The Thrift Savings Plan (TSP) website states: “You can withdraw a portion of your account in a single payment and leave the rest in the TSP until you decide how you want to withdraw the full amount.” It appears that a TSP participant can withdraw funds twice. After the first withdrawal, is there any time limit to withdraw the rest?

A

No, there is no time limit.

According to the TSP, you can make a withdrawal of part of your account in a single payment and then you can: 1. Elect to receive your entire account in a single payment; or 2. Receive your entire account in a series of monthly payments; or 3. Have the TSP purchase a life annuity for you with your entire account balance.

You can leave the account alone, but Internal Revenue Service rules require you to start withdrawing money at age 70-1/2 if you are retired from federal service.

For additional information or to download forms, go to www.tsp. gov, or call 877-968-3778.

retirees Reporting a Death

Q

I just attempted to report a death to the Office of Personnel Management (OPM) using a toll number that appears in NARFE publication F-100, “Be Prepared for Life’s Events.” I was advised by the customer service representative to contact OPM using an OPM tollfree number. Do you know why we can no longer use the toll number?

A

We had been recommending that NARFE members call a toll number at OPM to report a death. That number, 724-794-2005, can no longer be used to report a death. If you wish to call OPM for any reason, use the toll-free number, 888-7676738, if outside the Washington, DC, area. (Call 202-606-0500 if you live in the Washington, DC, calling area.)

Note: The toll-free number is frequently busy. Because of federal budget cuts caused by sequestration, OPM’s Retirement Services call-center hours of operation have recently changed; the call center is now open only from 7:40 a.m. to 5 p.m. EDT, Monday through Friday. If you have trouble reaching OPM during normal business hours, then try calling when the office first opens or near the 5 p.m. closing time. You also can email OPM at retire@opm.gov.

OPM has recently modified its website. You may report the death of an annuitant or survivor an-

nuitant online by going to www. opm.gov and selecting “Retirement” at the top of the page. Then in the menu on the right, click on “Report of Death.”

Insurance Proceeds

Q

My late father was an employee at the U.S. Embassy in Kinshasa, the Democratic Republic of the Congo. His daughter is named as beneficiary of his life insurance policy. On behalf of my sister, I would like to get an update on the status of the payout.

A

Because your father was a retired federal employee, his annuity benefits, including his Federal Employees’ Group Life Insurance benefits, would be handled by the Office of Personnel Management (OPM).

You can contact OPM by email at retire@opm.gov.

NARFE Insurance Services, an affinity partner with NARFE and administered by Marsh U.S Consumer, offers a variety of insurance to NARFE members.

If you believe your father had a policy under NARFE Insurance Services, call 800-233-5764.

Percentage of Survivor Annuity

Q

I retired under the Civil Service Retirement System. The survivor annuity for my wife is 60.72 percent of my current gross annuity. I had thought that it was 55 percent of my current gross annuw w w. n a r f e . o r g

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Questions & Answers

ity. It was the same percentage last year. Please explain the basis for my wife’s survivor annuity of 60.72 percent of my gross annuity instead of 55 percent and show the calculations.

A

The full survivor annuity benefit payable to your spouse should you predecease her is 55 percent of your unreduced gross annuity.

The gross annuity shown on your annuity adjustment statements is your annuity reduced to pay for the survivor benefit. The original reduction in your annuity to pay for the full survivor annuity was computed as follows: 2-½ % of the first $3,600 of your annuity, PLUS 10 % of the remainder of your annuity exceeding $3,600.

An example: If, at retirement, the Office of Personnel Management (OPM) computed your annuity to be $33,600 a year, and you elected the full survivor benefit, OPM would reduce your annuity as follows: 2-½ % X $3,600 = $90 10% X $30,000= $3,000 Reduction = $3,090 Your basic annuity of $33,600 would be reduced by $3,090 to $30,510 per year. That’s the reduced gross annuity you receive.

But the 55 percent for survivor benefits uses the $33,600 per year – your unreduced gross annuity or about 60 percent of your reduced gross annuity.

Medicare Choices

Q

I am a retired federal employee and currently am satisfied with the level and cost of my health Insurance.

In three years, I will be eligible for 24

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Medicare. My wife is 2-1/2 years younger than I. I am looking for the most cost-effective health care plan for me that also is the least costly to the government.

I would, therefore, like to understand all my options.

Is enrolling in Medicare at age 65 mandatory? Am I required to change my health insurance, or can I still carry my current Kaiser High Option health insurance plan? If I can continue with my current plan, do I receive the same level of insurance (benefits, co-pay charges, cost of plan, etc.)? If I am required to drop my current health insurance, what are my options? My wife is covered under my Kaiser plan. What happens to her health coverage when I turn age 65? Can she still be covered by my plan if I am of Medicare age?

A

Here’s information that addresses your questions on health insurance when you reach age 65 and become eligible for Medicare.

Medicare Part A (hospitalization) is free to all federal retirees who were employed during or after January 1983. You should accept enrollment in it. Medicare Part B (physicians, medical expenses) is optional, and enrollment requires you to pay a monthly premium. The current basic monthly premium is $104.90. Those whose adjusted gross yearly income is more than $85,000 (individual) or more than $170,000 (joint filing) will have a higher monthly Part B premium. You are covered under your Federal Employees Health Benefits Program (FEHBP) plan for as long as you live unless you decide to cancel your enrollment.

When you enroll in Medicare, Medicare becomes your primary insurance coverage, and your FEHBP is secondary. Medicare will pay its share of medical bills, and your FEHBP plan will cover what Medicare does not. There is no change in the benefits or level of coverage from your FEHBP plan just because you turn age 65, whether or not you enroll in Part B. It is not required – and we do not recommend – that you drop your FEHBP coverage. As a retiree, if you cancel your enrollment in the FEHBP, you cannot re-enroll at a later date.

You must be enrolled in an FEHBP Family option to continue health insurance coverage for your spouse. Your FEHBP premiums do not change when you have other coverage, such as Medicare.

We suggest that you read NARFE’s fact sheet on Medicare and the FEHBP. Go to the NARFE website, www.narfe.org, log in and click on “Medicare and the FEHBP” under “Federal Benefits Topics” in the middle of the page.

Bogus TSP Inquiry

Q

Recently, one of our NARFE chapter members, who is a postal annuitant, received a postcard inquiry. The subject was “TSP UPDATE Postal Service Retirement Funds.” The card advised the annuitant that he may qualify for one of the following: 1. Leave your funds in the TSP; 2. Annuitize; 3. Cash out; or 4. Rollover to a certain qualified plan.

The card further advised the annuitant that if he desired to

Cell Phone Inspires Chicago Doctor to Design Affordable Hearing Aid Outperforms Most Higher priced Hearing Aids

Reported by J. Page CHICAGO: A local board-certified Ear, Nose, Throat (ENT) physician, Dr. S. Cherukuri, has just shaken up the hearing aid industry with the invention of a medical-grade, affordable hearing aid.

This revolutionary hearing aid is designed to help millions of people with hearing loss who cannot afford— or do not wish to pay—the much higher cost of traditional hearing aids.

“Perhaps the best quality-to-price ratio in the hearing aid industry” —Dr. Babu, M.D. Board-Certified ENT Physician Dr. Cherukuri knew that untreated hearing loss could lead to depression, social isolation, anxiety, and symptoms consistent with Alzheimer’s dementia. He could not understand why the cost for hearing aids was so high when the prices on so many consumer electronics like TVs, DVD players, cell phones and digital cameras had fallen.

Since Medicare and most private insurance do not cover the costs of hearing aids, which traditionally run between $2,000-$6,000 for a pair, many of the doctor’s patients could not afford the expense. Dr. Cherukuri’s goal was to find a reasonable solution that would help with the most common types of hearing loss at an affordable price, not unlike the “one-size-fits-most” reading glasses available at drug stores.

He evaluated numerous hearing devices and sound amplifiers, including those seen on television. Without fail, almost all of these were found to amplify bass/low frequencies (below 1000 Hz) and not useful in amplifying the frequencies related to the human voice.

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Questions & Answers

inquire if his Thrift Savings Plan (TSP) funds qualify for the plan or receive updates from a TSP specialist, he was to return an attached postage-paid reply card.

The problem with the foregoing is that the annuitant in question does not have a TSP account. This makes me wonder how this “company” got the annuitant’s name and address, and how it knew that he is a postal annuitant.

A

We have no idea how the member’s name got on some company mailing list. Incidents like this should be reported to the TSP or to the Office of Personnel Management’s Inspector General’s Office. It may

be a scam to get people to provide information that could be used to access accounts, etc. Reporting this may save someone from getting ripped off.

Medical Tax Deduction

Q

An article titled “FEHBP and Healthcare Reform” in the May 2013 issue of narfe magazine stated that the 2013 tax year raises the threshold for unreimbursed medical expenses from 7.5 percent to 10 percent of adjusted gross income for those under age 65. I am age 66. I have Blue Cross/Blue Shield Standard Family coverage and also have separate “self plus

one” vision and dental insurance through the Federal Employees Dental and Vision Insurance Program (FEDVIP). I understand that I will be able to use the 7.5 percent rate through 2016. Because my spouse is only age 62, how does one figure the rate for the unreimbursed premiums when one person qualifies for the 7.5 percent rate for unreimbursed medical expenses and the other qualifies for the 10 percent rate?

A

The Internal Revenue Service (IRS) hasn’t provided any guidance on filing taxes for 2013, so we do not have any information we can share with you. The current

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Questions & Answers

NARFE at Your Service IRS publication 502, “Medical and Dental Expenses,” explains which expenses can be deducted and which ones cannot, as well as the current percentage limit (7.5 percent). For the form, go to www. irs.gov/pub/irs-pdf/p502.pdf.

husband’s Social Security benefits are reduced by the Windfall Elimination Provision (WEP)?

A

The wife’s benefit, based on the spouse’s earnings, also would be reduced by the WEP. If she waits until age 70 to apply for benefits based on her own earnings, they would not be subject to the WEP.

Dual Benefits

Q

I would like to follow up on a question you answered in a recent “NARFE NewsWatch” about a 66-year-old spouse who is collecting Social Security benefits based on her husband’s earnings and waiting until age 70 to file again based on her own earnings. What is the impact her benefits her 1 2012 Q&A Ad_half pageon 5/29/13 9:06 AM ifPage

To obtain an answer to a federal benefits question, NARFE members should call 703838-7760 and ask for the Federal Benefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

We’ve got the

NARFE service officers are available to answer questions and to assist in helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. For the nearest service officer, call NARFE (toll-free) at:

800-456-8410.

NARFE Service Centers also are available in some areas. Use the Service Center listings on the NARFE website,

www. narfe.org.

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Cover Story

disputing

Illustration by Bill Pragluski, Critical Stages, LLC

decisions

By David Tobenkin

I

n 1987, after James Deveney moved from an accounting position at the Government Accountability

Office to the U.S. House of Representatives, he says he was directed by a human resources benefits officer that he would have to cash out his Civil Service Retirement System (CSRS) retirement plan and begin a Federal Employees Retirement System (FERS) retirement plan.

Deveney, 58, who retired in January, says that the instruction to cash out was incorrect and illegal, and, had he rejected it, he could have remained in the far-more-generous CSRS plan. That mistaken advice, he adds, is costing him $3,000 a month in retirement annuity benefits and could cost his wife greater annuity survivor benefits in the event he predeceases her.

Deveney’s pleas to the Office of Personnel Management (OPM) to retroactively rescind his election fell on deaf ears, and OPM denied his appeal on reconsideration. He appealed that decision to an administrative judge at the Merit Systems Protection Board (MSPB), which hears most retirementrelated appeals from OPM. But in January 2013, the administrative judge affirmed the OPM decision, finding legal precedent held that his FERS election could not be rescinded. Deveney and his attorney, Edward H. Passman, a partner at the Washington, DC, firm of Passman & Kaplan, P.C., remain undeterred. In March 2013, they filed a petition for review of the initial decision to the full board of the MSPB and now await action by the board, which could take one year.

“More than anything, I want to get justice,” says Deveney, who adds he has paid “in the four figures” in attorneys’ fees to pursue his claim but would

Online Bonus: See a longer version of this story, with additional examples of appeals cases and considerations when deciding whether to appeal, at www.narfe.org/narfemagazine. w w w. n a r f e . o r g

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When to make a federal case out of it

likely be awarded both attorneys’ fees and CSRS benefits if he wins on appeal. “There was more than a lack of guidance here; there was misinformation.

Letting it go would be eating away at me.”

The Right to Appeal

One of the great hallmarks of the American system of justice is the right to appeal an adverse decision to a higher body – ultimately, in some cases, all the way to the U.S. Supreme Court. Many federal workers and retirees have pursued that path by appealing personnel actions and benefits decisions at the original deciding agency, then with the MSPB and then in the courts. But the journey is often timeconsuming, and victory is anything but assured.

This is particularly true in such an uneven contest, pitting the federal employee – usually unschooled in law, inexperienced with regard to his or her particular benefit issue, and often representing himself or herself – against an agency with massive resources and unlimited time at its disposal, not to mention subject matter knowledge and legal expertise gained through many previous battles.

Procedural Challenges

For those up for it, an initial hurdle is finding the right forum to challenge an action. Certain initial steps may need to be taken at an employee’s agency, advises John P. Mahoney, a partner in the Washington, DC, office of Tully Rinckey, PLLC, and chair of its Labor & Employment Law Practice Group. “With respect to classification appeals, for example, if an employee thinks that he or she has been wrongly graded or placed in the wrong series, he or she can request a desk audit from the employing agency, and the agency is supposed to review the employee’s duties, series and grade,” Mahoney says. “If the employee disagrees with the agency’s outcome, he or she can appeal to OPM, which makes the final decision in classification appeals.

The employee also may file before the Equal Employment Opportunity Commission if he or she can claim discrimination.“ Determining which particular body or court has jurisdiction to hear a claim, and the time frame for when a complaint, request for reconsideration or appeal must be submitted, are important because

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challenging an action in the wrong forum or too late could result in dismissal of the claim.

In disciplinary actions, usually an agency issues a notice of proposed action, such as a removal; allows the employee a certain number of days to respond orally and/or in writing; then makes its determination. In “adverse actions,” as that term is defined in the law (removal, suspension for more than 14 days, reduction in grade or pay, and furlough for 30 days or less), those procedures are mandatory, including at least a seven-day response time, and a period of at least 30 days between the proposal and the effective date of the action. The employee then has a certain number of days to file a union grievance, administrative grievance, Equal Employment Opportunity (EEO) complaint or, in the case of a suspension of 15 days or more, an MSPB appeal. Sometimes an agency document rendering an adverse outcome or denying a claim will clearly state where an appeal may be taken – often within the agency itself, with the MSPB or OPM – and within what period. If the action is one that is appealable to the MSPB, the appeal period is 30 days from its effective date or 30 days from its receipt by the employee, whichever is later. In addition, the agency must inform the employee that he or she has the right to appeal to the MSPB and provide access to, or a copy of, the MSPB appeal form.

“In evaluating potential appeals, we look at whether the agency followed the law and its own policies in taking the action at issue; or, if they instead did not follow a statute, the terms of an applicable union collective bargaining agreement, OPM regulations, MSPB precedent or the agency’s own internal policies,” says Mahoney. “If the agency didn’t follow its own rules or OPM’s regulations, depending on the violation, we may be able to file a challenge with [the Office of Special Counsel], the MSPB or OPM, depending upon the legal violation at issue. If an employee has issues with retirement benefits claims, such as if their retirement benefits were improperly calculated, or they were placed in the wrong retirement system, that would initially be an OPM challenge. For OPM challenges, you file an initial application for benefits; and, if OPM denies the claim, you can request reconsideration in writing. If they reject the challenge, the employee may be able to file an

appeal before the MSPB and have a hearing on the merits of the appeal.”

Many deadlines to bring appeals are very short.

“Most grievance, complaint or appeal rights must be pursued within 15, 30, 45 days or less from the triggering event,” Mahoney notes. “If folks feel unfairly treated, they need to seek counsel quickly when they receive a letter they don’t agree with.”

Often, small differences in the action appealed can amount to different options. For example, appeals of furloughs and adverse actions generally allow federal employees 30 days for an MSPB appeal.

But disciplinary actions with durations of 14 days or less – over which the MSPB has no jurisdiction – may require an employee to file an administrative grievance to preserve his or her rights within as few as seven days. Another option, if an employee is covered by a union contract, would be to file a union grievance. Too, if an employee believes he or she can show that a personnel action was caused by discrimination, he or she has 45 days to initiate EEO counseling through an employee’s EEO office in the agency. Actions premised upon whistleblower complaints or involving prohibited practices have no deadline to file a complaint with the Office of Special Counsel.

Appellants seeking review of many types of agency actions that are allowed before the MSPB file an appeal at one of eight MSPB regional or field offices having geographical jurisdiction over a given claim. MSPB administrative judges there are actually besting a target-review window of four months.

In fiscal year 2012, they issued an initial decision 93 days, on average, after the appeal was filed.

While the MSPB would hear most retirement benefits appeals and many termination claims, other matters are more appropriately brought to other appellate bodies. The MSPB has no authority over benefits decisions, such as life insurance and health benefits. Appeals of those benefits would be taken first to OPM and then to the U.S. Court of Federal Claims. Likewise, appeals of workers’ compensation decisions are held by the Employees’ Compensation Appeals Board, a part of the Department of Labor.

Thus, it may be worthwhile to seek a consulta-

Filing in the wrong forum or too late could doom your claim. tion from an attorney specializing in representing federal employees, at least initially, to make sure the claim is being filed in the right place by the prescribed time.

Options Before the Board

A key part of the appeals process is settlements.

Many cases are resolved in agreements between the appellant – the party seeking the appeal – and the agency prior to a hearing before the MSPB administrative judge, the full board or a court.

“With respect to the big-ticket items before the MSPB, such as adverse actions or demotions, a high percentage of the cases settle, with the settlement results depending upon the strength of the employee’s claims,” Mahoney notes. “Less than 20 percent of complaints tend to go to hearing. For those that do go to trial, it’s about 60 percent to 40 percent agency winning over the employees.” One drawback of such settlements is that the agency may not be willing to pay legal fees, which could leave the employee or retiree on the hook for them, though others note that many federal employees or retirees will not settle without them.

Any adverse MSPB administrative judge decision may be appealed by either side through a petition for review to the full MSPB in Washington, DC. Unless a party files a petition for review with the board, the initial decision becomes final 35 days after issuance. The board itself issued decisions an average of 245 days after filing in fiscal year 2012.

Both the initial appeal and those to the full board are free to the petitioner. The board’s decision on the petition for review constitutes the final administrative action.

On to the Courts In many matters, the next

When to make a federal case out of it

step after a full MSPB decision, or after an initial decision has become final without a petition for review, would be an appeal to the U.S. Court of Appeals for the Federal Circuit. Usually, decisions are rendered within a year. Most agencies cannot appeal to the court, with the exception of OPM, which usually does so only if an MSPB decision will have a broad effect upon the federal employment sector or upon how the executive branch runs, says Mahoney.

The final step is to the U.S. Supreme Court. But a claimant who loses in a federal circuit court should not hold out much hope from those august halls.

Supreme Court review is discretionary, and it must grant a petition for certiorari and decide to accept the case, something it does for only about 100 to 150 of the more than 7,000 cases that it is asked to review each year.

David Whalen, a former mechanical engineer at the Naval Surface Warfare Center, unsuccessfully appealed OPM’s denial of his claim to get four years of creditable service as a midshipman at the U.S. Merchant Marine Academy applied toward his CSRS pension, a benefit that is extended to cadets and midshipmen of the other military academies.

Whalen appealed first to the MSPB, then to the federal circuit and finally to the Supreme Court in a process that lasted three years.

Whalen did not use outside counsel to pursue his appeals; but even so, related costs were not insubstantial. “Since I did not employ a lawyer, the cost of the appeals was primarily postage (certified with return receipt) and photocopies, for about a total of $1,000,” Whalen says. “The cost of filing the Supreme Court writ of certiorari was about $700, including the booklet copies, postage and $300 filing fee.”

His conclusion is that pursuing one’s own appeal is a tough row to hoe. “The appeals process is available, but it requires time, talent and funding beyond the resources of most federal employees,” Whalen adds.

Finding Good Counsel

For that reason, many turn to an attorney to represent them. Most attorneys charge an hourly fee rather than accept a case on a contingency basis, whereby they would share in any amount recov-

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ered. As noted, appellate bodies like the MSPB and courts will often award legal fees when the retiree is victorious, if the hours and rates are reasonable, Mahoney explains.

At least an initial consultation with an attorney experienced in federal employment law may be worthwhile to gain a sense of what an appeal of a given decision would entail and to get a dispassionate assessment of the relative strength of the case.

“The number of appellants who are represented is about 50-50,” says Michael Bogdanow, MSPB senior legal liaison to the MSPB regional and field offices. “Those who are represented by others are usually represented by attorneys, union representatives and spouses.”

Bogdanow says that there is an effort under way to expand legal assistance to federal appellants.

“The administrative judges do provide more assistance to those who represent themselves,” Bogdanow notes. He says that the MSPB also is now attempting to set up pro bono (free or reduced fee) representation programs in regional offices. “In San Francisco and in Denver, the local law schools’ legal clinics are working with our offices and are taking over representation of some cases of pro se (selfrepresented) appellants,” Bogdanow says. “We are trying to work out similar programs in the Philadelphia and District of Columbia offices.”

All Appeals Are Not Created Equal

Most of the cases brought to the MSPB are appeals of agency adverse actions — removals, suspensions of more than 14 days, reductions in grade or pay, and furloughs of 30 days or less, such as those being pursued by the federal government under the sequester. Furloughs of more than 30 days are reductions in force, which are subject to a very different procedure. The next largest number of cases, according to the agency, involves appeals of OPM determinations in retirement matters.

“Over the last couple of years, we have been seeing a number of cases involving constitutional due process, notice and an opportunity to reply to proposed adverse actions, and issues involving the ability of individuals to hold sensitive positions,” says Susan Tsui Grundmann, chairman of the MSPB. “In addition, there have been a number of cases involving

the procedures employees are entitled to when their security clearance is being revoked.”

The MSPB produces an annual report that includes a detailed breakdown of the appeals it handles and statistics on the dispositions of appeals. Federal workers or retirees may get some sense of their chances for success through an appeal from that data.

For FERS retirement overpayment appeals handled in 2012 by regional and field offices, for example, 123 cases were decided, including 45 dismissed and 78 not dismissed. Of the 78 not dismissed, 58 were settled and 20 were adjudicated.

A realistic view of the chances of success also should guide federal workers and retirees in deciding whether to appeal, Bogdanow advises.

“The board is required to follow the law, and if statutory language requires the board to rule a certain way, it certainly will,” Bogdanow says.

“However, in many cases, the board has discretion to consider a number of factors that bear on a legal issue that may not be clear from simply reading the statutory language. Appellants should keep this in mind when considering whether to file an appeal.”

But unless the federal government discriminates against a protected class or commits another prohibited personnel practice, there is very little hope of a successful appeal in many areas. For that reason, there are large swaths of personnel and benefits decisions that are rarely appealed.

The recent furlough actions by the federal government caused by the sequester are a case in point. They, thus far, have led to 81 individual appeals before MSPB administrative judges, as of May 6, 2013, says Bogdanow. However, according to DC attorney Mahoney and others, there is little hope for many of those plaintiffs to emerge victorious, given that generally all a federal agency must show to prevail is that it has been evenhanded in the manner it administered the furloughs.

“The best way for federal employees to challenge a notice of proposed furlough is to show that the way the furlough rolled out resulted in a disparate impact on their protected group based on their race, color, sex or some other prohibited discrimination group membership,” advises Mahoney. “If an employee is represented by a union and gets a furlough notice, instead of an MSPB claim, they

Take a realistic view of the chances your appeal will succeed. may be able to file a union grievance.”

“If possible, anecdotally, my advice would be to proceed through the union grievance route,” Mahoney says. “Statistically, arbitrators tend to rule for employees more than MSPB judges. Also, many of the federal-sector unions will allow an employee grievant to be represented by his or her own attorney in a union grievance.”

Despite the long odds of appealing a furlough notice, Michael Fleming is undeterred. A project officer with the Federal Aviation Administration in Anchorage, AK, Fleming was waiting in mid-April for an expected denial from his agency of an appeal of his furlough notice, which would dock him and other FAA employees one day per pay period, or a total of 88 hours, before appealing to the MSPB. “I probably won’t be successful on appeal to the MSPB unless there is a class action in the future,” Fleming says. “That’s the main reason I’m appealing — so I don’t lose my ability to be part of a class challenging this action in the future.” (Editor’s note: As this issue was being finalized, the FAA suspended its furloughs.)

While NARFE provides general information about appeals, it does not pursue appeals for members. “NARFE does not advocate for or join in individual members’ administrative appeals or court actions,” says David Snell, director of NARFE’s Federal Benefits Service Department. “We can only provide guidance on the appeals process or, in the case of Social Security benefits, refer the member to one of our members who is an attorney and helps individuals in appealing decisions.”

—David Tobenkin is a freelance writer based in the greater Washington, DC, area.

Many feds drift through their careers, failing to focus on their FEGLI benefits.

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Life Insurance The Forgotten Benefit

For many federal employees, only the jump in the payroll deduction that occurs when they reach age milestones that are multiples of five­— such as ages 50, 55 and 60 — tips them off that life insurance is still in their benefits portfolio and that it has gradually transformed from reasonably affordable to extremely expensive.

Often, it’s when they are a few years from retirement, or when they decide to retire, that many federal workers learn just how much life insurance they have and how high the premiums have risen. They realize that they should have been managing their Federal Employees’ Group Life Insurance (FEGLI) benefits, along with their other finances, throughout their careers.

This underscores the need for lifelong financial planning that goes far beyond just deciding how much to contribute to one’s Thrift Savings Plan account.

Most people have too little life insurance as young adults and too much later in life, says Allen C. McLellan, adjunct professor of insurance at the American College of Financial Services in Bryn Mawr, PA. “Only a small

By Steve Bates

w w w. n a r f e . o r g

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Life Insurance

The Forgotten Benefit

number of people have actually put pencil to paper and calculated this.”

In addition, some federal employees say that when they retire, they don’t have adequate information about their choices regarding life insurance going forward. And even some of the employees and retirees who take the time and trouble to study their FEGLI benefits say the program is complex and confusing.

How FEGLI works

The federal government established FEGLI in 1954. It is the largest group life insurance program in the world, covering more than four

FEGLI is the world’s largest group life insurance program. million federal employees, retirees and family members. FEGLI offers only term insurance, which is a form of temporary insurance. It carries no cash value — unlike whole life insurance, a form of permanent insurance available from private companies. The Office of Personnel Management (OPM) contracts with MetLife to underwrite the insurance and with a private entity, the Office of Federal Employees’ Group Life Insurance, to administer and adjudicate claims.

There are few opportunities to add FEGLI coverage. Other than when hired or during a scheduled Open Season — the most recent was in 2004 — employees can add coverage only after a life event: marriage, divorce, death, birth or adoption.

Coverage can be reduced or canceled at any time.

FEGLI will insure any federal employee, regardless of health status, unlike private insurance, which typically will charge elevated rates or refuse coverage for people with high health risks.

FEGLI offers Basic coverage and three types of optional coverage: 38

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• Basic life insurance is equal to the employee’s annual salary rounded up to the next even thousand dollars, plus two thousand dollars. It rises automatically as the worker’s salary climbs throughout his or her career, and the cost is not impacted by the employee’s age. Federal employees pay two-thirds of the premium; the government picks up the other one-third. The U.S. Postal Service pays the entire Basic premium for its employees. Employees are enrolled automatically in Basic insurance unless they waive it. They are not enrolled in optional insurance unless they apply for it. They pay the full cost of optional coverage.

• Option A is Standard life insurance, available in the amount of $10,000. Premiums increase at five-year intervals after the employee or retiree reaches age 35, with the steepest increases beginning at age 50.

• Option B is Additional life insurance. It is available in increments of one, two, three, four or five times the employee’s annual salary, rounded up to the next even $1,000. As with Option A, premiums for start to rise at age 35.

• Option C is Family life insurance. For the potential death of a spouse, it is available in multiples of one to five times $5,000. For the potential death of each eligible dependent child, it is available in multiples of one to five times $2,500.

Again, premiums start rising when the sponsor reaches age 35.

As noted, the cost of optional FEGLI premiums rises as the employee reaches age milestones at five-year intervals. These premium increases accelerate, reflecting the increasing odds of the employee’s death as he or she ages. For example, as of May 2013, Option A, Additional life insurance, costs 65 cents a month for a 34-year-old but $13 a month — 20 times as much — for a 60-year-old.

At retirement, if an employee continues FEGLI coverage, the value of his or her insurance is based on the coverage in effect for the previous five years. If he or she is retired and older than age 65, the retiree can continue to pay premiums to maintain coverage or can allow the coverage to scale back automatically. Basic and Option A coverage will reduce by 75 percent, but no more

How to Get Help with

fegli coverage For current federal workers:

The Office of Personnel Management (OPM) advises active employees to contact their human resources office. “The office that maintains your official personnel folder or its equivalent is the only office with access to your FEGLI life insurance records. If you do not know what office that is or how to contact it, check with your supervisor,” OPM states on its website, www.opm.gov.

In addition, a “FEGLI calculator” on the OPM website is designed to allow federal employees to determine the value of various combinations of life insurance coverage, to calculate premiums for various combinations of coverage, to determine how selecting different options can change the amount of insurance and premium withholdings, and to determine how life insurance carried into retirement might change over time.

For federal retirees:

OPM’s Retirement Office “is the only office with access to your FEGLI life insurance records,” OPM states on its website. “Your FEGLI records are not available online.”

OPM encourages retirees to contact the Retirement Office by calling 888-767-6738 or by sending an email to retire@opm.gov. In addition, retirees can request that a Verification of Life Insurance document be mailed to them. That document will provide information on life insurance coverage.

The Retirement Office’s phone lines are open Monday through Friday, 7:40 a.m. to 5 p.m. ET. However, “the phone lines get extremely busy, so we recommend calling early in the morning or late in the evening when the lines are less busy. Have your retirement claim number (CSA/CSF) or Social Security number handy,” the website advises.

The OPM website includes a PDF document to use for changing life insurance beneficiaries.

premiums will be paid by the retiree.

“FEGLI is fairly priced for what it is,” says Tammy Flanagan, senior benefits director of the National Institute of Transition Planning, which conducts federal retirement planning workshops and seminars. “FEGLI is run well. It serves the purpose it was designed for.” However, she notes that young, healthy employees typically

can save money by buying private insurance instead of purchasing FEGLI Option B coverage.

Take Charge of coverage

If FEGLI sounds as complicated as taxes, that analogy has occurred to others as well. Does the phrase “death and taxes” ring a bell?

One current federal employee who feels that w w w. n a r f e . o r g

|

39

Life Insurance

The Forgotten Benefit

the FEGLI system is too confusing is Michael P. Rummel, a 65-year-old employee of the Department of Homeland Security in San Diego.

A NARFE member, Rummel is “one of those people who hates to read instructions. I’m an intelligent person,” says Rummel, an attorney, who has attempted to decipher the various FEGLI options. “I could not figure them out.”

Rummel would like to see a seminar for federal workers to help them interpret their benefits soon after they are settled in their job and have the time to absorb the details. “I need somebody to sit down and show me how it works,” he explains. “I don’t have the time to read five pages of instructions. If I don’t read it the right way, I could be over-insured or under-insured.”

Retiree James Wilkinson, also a NARFE member, realized early in his career that he needed to use a financial planner for life insurance. “I didn’t have any way to estimate my needs 30 years from then,” he recalls. Wilkinson, who worked for the Federal Aviation Administration and lives near Grand Rapids, MI, notes that OPM does not make it easy to find out how much life insurance one has. “That’s kind of a sore spot.” (For information on how to find out about your coverage, see sidebar, p. 39.)

NARFE member Annie Boston, age 56, of Atlanta says that she felt blindsided when she retired from the Department of Health and Human Services. She recalls that she had no idea how much more she would be paying for life insurance until she saw the deductions from her first postretirement checks.

“It was like: ‘What in the world? I can’t afford that.’ I had to go in and adjust my coverage,” she adds. Now, “I haven’t a clue how much coverage I have. If there’s enough to cremate me, fine.”

She suggests that the government should send employees and retirees regular statements telling them the amount of their life insurance “and what to expect, how it’s going to change.”

OPM supports the human resources offices in each agency, and “we rely heavily on the HR offices to communicate with employees” about life insurance choices, says Shirley Patterson, OPM’s assistant director of federal employees insurance operations. That communication oc40

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Employees must take the initiative to manage their insurance benefit. curs when the employee joins the government and “continuously” thereafter, she adds.

However, Patterson notes that acquiring life insurance and making sure that it is the appropriate amount throughout one’s career represents “a personal decision.” OPM and human resources offices provide help, including online resources, for active employees, and OPM’s Retirement Office provides assistance for retirees (see sidebar). But the individual must take the initiative to manage his or her benefits, Patterson says. She notes that the government provides solid financial advice for employees preparing for retirement, including how to handle their life insurance.

NARFE member Claudia Kilroy, 57, of Staten Island, NY, “had heard from some folks who had had some negative experiences” with their life insurance as they prepared to retire. Before she left the U.S. Postal Service, she talked by phone with a government retirement counselor who “helped me work out a solution” to her situation, says Kilroy. The counselor even pointed out the potential advantages of supplementing her government life insurance with private life insurance, she notes.

“It would have been very difficult had I not been able to draw on the expertise of the excellent retirement counselor,” Kilroy adds. “She made all the difference.”

Commented another NARFE member in a written response to a life insurance survey question: “Overall, I have been very well pleased with FEGLI. It’s a GREAT benefit! It was [great] while I was working, continued to be so once I retired, and got even better once we turned 65 and stopped paying premiums!”

—Steve Bates is a freelance journalist in the Washington, DC, area. He is a former writer and editor for numerous print and online publications, including The Washington Post.

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Managing Money

Giving to charity through an IRA

T

he American Taxpayer Relief Act of 2012 extended the qualified charitable distribution (QCD) provisions for 2013. The law allows an individual who is age 70-½

or older to transfer an individual retirement account (IRA) distribution, including required minimum distributions (RMDs), directly to a charity and exclude the distribution from income. I’ve fielded many questions recently asking, “What’s the difference between a QCD and simply offsetting my IRA distribution by making a cash donation and then deducting the contribution from my income?” In some cases, there may not be much of a difference; but for many, the QCD will provide a clear advantage.

A QCD is tax-free distribution of up to $100,000 in a single year made to a qualified charity from an IRA (other than an ongoing Simplified Employee Pension plan or Savings Incentive Match Plan for Employees).

To be an eligible QCD, the IRA distribution must otherwise be taxable, the IRA owner must be at least age 70-½ at the time of distribution, and the distribution must be paid directly to a qualified charity. And, no, there’s no double-dipping – you cannot also take a charitable deduction for the value of the QCD. The advantage the QCD has over taking an IRA distribution, donating cash and deducting the donation as an itemized deduction is that the QCD does not count as taxable income, which may help reduce taxes

42

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and maximize deductions that are based on some form of adjusted gross income (AGI).

For example, only medical expenses exceeding 7.5 percent of your AGI and miscellaneous expenses exceeding 2 percent of your AGI are deductible.

Furthermore, the QCD may help minimize the amount of Social Security benefits you must include as taxable income.

For example, let’s assume a couple with pension income of $40,000 and Social Security benefits of $25,000 must take a $10,000 RMD, which also is the amount they would like to contribute to charity.

If the couple elects a QCD and transfers the RMD directly to a charity, the RMD is not included in the couple’s AGI, and the couple must include

By Mark A. Keen,

CFP®

$13,225 of their Social Security benefits as taxable income. On the other hand, if the couple takes the RMD directly, makes a $10,000 cash donation and deducts the contribution as an itemized deduction, the amount of their Social Security benefits they have to include as taxable income jumps to $21,725.

In addition to taxes and deductions, other items, such as Medicare Part B premiums, are tied to your income as well.

The standard monthly Medicare Part B premium for 2013 is $104.90; but starting at incomes of $85,000 for individuals and $170,000 for couples, the Medicare Part B premium increases to $146.90 per month and can climb up to $335.70 per month for high-income households.

Individuals and couples who don’t have enough deductible expenses to itemize and instead claim the standard deduction will benefit from the QCD. Even if the charitable donation, when added to other deductible expenses, allows a tax filer to itemize, the value of the charitable deduction may still not be fully realized when taking the standard deduction into consideration. For example, let’s assume our couple in the previous example has only $6,000 (not including the $10,000 charitable donation) in expenses that qualify as itemized deductions.

MONEY MEMO NARFE offers an online retirement calculator and other financial planning tools. Find out more at www.narfe.org/ federalbenefits.

If the couple contributed cash rather than their RMD, the couple will have $16,000 in itemized deductions. However, because the couple would otherwise get a $12,200 standard deduction, the couple’s $10,000 charitable donation increases their total deductions by only $3,800.

While almost always better than donating cash, the QDC may not be the best gifting strategy if you

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are charitably inclined. If you have low-basis stock, you may be better off donating the stock to charity rather than electing the QDC. Not only do you get to take the charitable deduction for the full market value of the stock, which can be used to offset most of an IRA distribution, you never have to pay tax on the gain of the stock.

There are a variety of ways to give to charities, and you’ll need to run the analysis to determine which strategy is most beneficial for you. When considering a QDC, or any gifting strategy, be sure to check to see what the best strategy is at the state level as well.

Mark A. Keen, CFP®, is partner, Keen & Pocock, 10300 Eaton place, Fairfax, VA, and an investment adviser representative and registered principal of The Strategic Financial Alliance, Inc. (SFA). Securities and advisory services are offered through SFA. Email: mkeen@keenpocock.com.

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The Informed Citizen

Put Pen to Paper and defend your benefits

O

ften this space is devoted to Internet resources for electronic advocacy or directed to just officers and leaders.

As many NARFE chapters go dark for the summer, now is the best time for the sovereign citizen to be his or her own best advocate. Resolve to test your power – and the power of the pen.

Late June and throughout July is a great time to send your two cents’ worth to elected officials as a letter or postcard. Below, you will find a message that you can modify and mail to your members of Congress using your NARFE greeting cards or on a “penny” postcard (now 33 cents).

Both income security and health security, the twin pillars of federal retirement, are under attack. Income security comes through an accurate and timely cost-of-living adjustment (COLA). Health security is provided by the Federal Employees Health Benefits Program (FEHBP), often coordinated

with Medicare. Cards and letters from NARFE members will encourage our congressional champions to again step forward and defend these programs.

Critics of the current methodology for measuring inflation are not new. In 1996, the Boskin Commission alleged that the current CPI formula overstated price increases. In 2010, the Fiscal Commission popularized going to the Chained CPI, which would trim COLAs with a compounding impact over time.

More recently, the other pillar, health security, became a pawn in the fight over implementation of the Affordable Care Act.

Sample Message: I am a constituent and a NARFE member. I am following threats to my earned benefits after a career in federal service.

My income security is threatened by proposals to base the cost-of-living adjustment on the Chained CPI. My health security is threatened by pending legislation, H.R. 1780, to dismantle the FEHBP by forcing federal employees out of the FEHBP and into the exchanges created under the Affordable Care Act. Please send me a reply in writing, clearly stating your views on both these threats to the benefits I was promised throughout my federal service.

Sincerely, Your name and address

44

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By Christopher Farrell, Legislative Representative

After years of paying FEHBP premiums as employees, retirees would be left as the only enrollees in the FEHBP if a bill (H.R. 1780), introduced by House Ways and Means Committee Chairman Dave Camp, R-MI, were enacted (see story, p. 15).

With little apparent regard for the intergenerational contract that is FEHBP, Camp would sever federal employees from the largest and highly successful employer-based health insurance program. Disaggregating the risk pool would dismantle the FEHBP for retirees.

Rarely, if ever, have both income and health security been under simultaneous attack. Use pen and paper to defend your earned benefits. When sending your letters, please send an additional postcard to NARFE, telling us of your investment in your earned benefits.

Mail to:

The Honorable .............

U.S. House of Representatives Washington, DC 20515 The Honorable ................

U.S. Senate Washington, DC 20510

Notify NARFE of Your Action: NARFE Pen Project c/o Legislative Department 606 N. Washington St. Alexandria, VA 22314

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2012

2013

2012

For the Record

Thrift Savings Plan Monthly Returns

AUGUST

0.11%

0.07%

2.25%

3.57%

3.29%

SEPTEMBER

0.10%

0.15%

2.57%

2.51%

2.96%

OCTOBER

0.12%

0.20%

(1.86%)

(1.31%)

0.85%

NOVEMBER

0.11%

0.16%

0.57%

1.53%

2.41%

It was a mixed bag for the Thrift Savings Plan (TSP) Funds in May. The F Fund had its biggest decline since May 2008, as investors worried that the Federal Reserve may change its easy money policy. It is now the only TSP Fund to have a negative return for the year.

While the U.S. stock funds were up for the month, the I Fund fell for the second time this year. Rising interest rates led to strength in the U.S. dollar, which hurts I Fund performance.

DECEMBER

0.12%

(0.13%)

0.91%

2.69%

4.02%

—by TRACEY RAY, chief investment officer of the Thrift Savings Plan

JANUARY

0.13%

(0.56%)

5.18%

6.96%

4.45%

FEBRUARY

0.13%

0.51%

1.36%

1.00%

(0.99%)

March

0.13%

0.07%

3.75%

4.69%

0.88%

APRIL

0.12%

1.02%

1.93%

0.65%

5.32%

MAY

0.12%

(1.78%)

2.34%

2.71%

(3.12%)

YTD

0.62%

(0.76%)

15.38%

16.91%

6.46%

LAST 12 MO

1.41%

1.11%

27.26%

31.05%

30.96%

L INCOME

L 2020

L 2030

L 2040

L 2050

JUNE

1.04%

2.72%

3.32%

3.77%

4.27%

JULY

0.37%

0.63%

0.71%

0.75%

0.78%

AUGUST

0.63%

1.57%

1.94%

2.23%

2.51%

G FUND

F FUND

C FUND

S FUND

I FUND

JUNE

0.11%

0.05%

4.13%

3.25%

7.08%

JULY

0.12%

1.38%

1.40%

(0.62%)

0.56%

SEPTEMBER

2013

Countdown to COLA

T

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.2 percent in April. To calculate the amount of the 2014 cost-of-living adjustment (COLA), the indices of July, August and September 2013 will be averaged and compared with the 2012 third-quarter average of 226.936. That percentage increase, if any, determines the COLA. The April index of 228.949 is up 0.89 percent from the base.

Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W. April’s index is 1.35 percent higher than the December 2012 base index of 225.889.

0.62%

1.52%

1.87%

2.12%

2.38%

(0.11%)

(0.45%)

(0.60%)

(0.71%)

(0.80%)

NOVEMBER

0.34%

0.77%

0.93%

1.06%

1.19%

DECEMBER

O.47%

1.19%

1.48%

1.69%

1.93%

JANUARY

1.10%

2.83%

3.56%

4.11%

4.63%

FEBRUARY

0.27%

0.41%

0.49%

0.54%

0.56%

MARCH

0.73%

1.69%

2.12%

2.44%

2.71%

APRIL

0.67%

1.58%

1.91%

2.13%

2.41%

MAY

0.19%

0.33%

0.43%

0.51%

0.53%

YTD

2.99%

7.00%

8.77%

10.08%

11.27%

October 2012

227.974

-0.1

0.45

LAST 12 MO

6.50%

15.78%

19.66%

22.59%

25.56%

November

226.595

-0.6

-0.15

OCTOBER

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

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

46

fund Returns Were mixed in May; F fund fell on fed jitters

| J U l

2 013

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

Month

CPI-W

Monthly % Change

% Change from 226.936

December

225.889

-0.3

-0.46

January 2013

226.520

+0.3

-0.18

February

228.677

+1.0

+0.77

March

229.323

+0.3

+1.05

April

228.949

-0.2

+0.89

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Each charge lasts up to 28 hours!

Call our Customer Care Specialists TOLL FREE for lowest prices ever.

Please mention code

13SW054

1-866-789-3123 www.neutronicear.com

Neutronic Ear is not a hearing aid. If you believe you need a hearing aid, please consult a physician.

Donate to NARFE Programs Support Alzheimer’s Research

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

Write your chapter number on check; make it payable to: NARFE-Alzheimer’s Research

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

Please circle: Mr. Mrs. Miss Ms. and mail to: Name: Alzheimer’s Association Address: 225 N. Michigan Ave., 17th Floor City: State: ZIP: Chicago, IL 60601-7633 Chapter Number: Credit Card Information:

MasterCard Visa NARFE members contributed for If you have any questions, write to:

Discover AMEX Alzheimer’s research: $11 Million Fund National Committee Chair Card Number: Jane Rodgers, P.O. Box 234 Expiration Date: (mm)/ (yy) Wadesville, IN 47638-0234 *Total as of April 30, 2013 3-Digit Security Code: 100% of all contributed funds go to Name: (please print) Email: ajrodgers@tds.net

$10,297,071* Alzheimer’s research.

Signature

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

•For a contribution of $25 or more, you will receive a Silver Circle pin, and your name will be listed in narfe magazine with other contributors.

•For a contribution of $1,000 or more, your name will be placed on the “Wall of Fame” at NARFE Headquarters.

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

/

Enclosed is my Silver Circle contribution: $ ID # (ID # may be found on your narfe magazine label or your NARFE membership card)

Name: Address: City: Silver Circle contributions are NOT deductible for federal income tax purposes.

Installment Plan Wall of Fame 12-month installment plan

Give to the Scholarship and Disaster Funds

Please mail coupon and check to: FEEA 3333 S. Wadsworth Blvd., Suite 300 Lakewood, CO 80227

/

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

State:

ZIP:

My check is enclosed

(Please make check payable to NARFE Silver Circle.)

Please charge my credit card Card type MasterCard Visa

Discover AMEX Card Number: Expiration Date: (mm)/ (yy) Name: (please print)

Signature

Make check payable to: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund.

Date

YES!

Date

/

/

I would like to help with my contribution.

Please check appropriate box(es). To make credit-card contributions, call 800-338-0755. Scholarships are available to children, grandchildren and great-grandchildren of federal civilian retirees and current federal employees who are NARFE members.

NARFE-FEEA Disaster Fund

Amount: $

NARFE-FEEA Scholarship Fund

Amount: $

Name: Address: City:

State:

ZIP:

NARFE News

AT LEFT: Shown with the $4,000 memorial check from Chapter 643 to the NARFE-Alzheimer’s Fund are, from left: Roger Finley, outgoing Georgia Federation president; Louise Shay, Federation Alzheimer’s chair; Janice Burgess, Chapter 643 president; James and Sylvia Davis, brother and sister-in-law of Jackie Clark; and National Treasurer Thissen.

BEQUESTS AID NARFE FUNDS

B

equests totalling $44,000 They left $4,000 to Chapter 643 by two NARFE members to donate in their names to the have benefited three NARFE NARFE-Alzheimer’s Research funds. James and Jackie (Jacqulyn) Fund. They also left $40,000 to Clark joined NARFE Chapter 643 NARFE-PAC. Because the gift in Albany, GA, after retiring from exceeded the legal limit for PAC dothe Marine Corps Logistics Base nations, NARFE-PAC could only acin Albany. Both served as chapter cept $5,000 donations for 2012 and president – Jackie in 1992; James 2013. The Clarks’ executor agreed in 1995, 1996 and 2002. James died to split the $30,000 remaining Life Membership Apl_New Design 3/26/13 3:49 PM Page 1 in 2011; Jackie died in 2012. between NARFE’s “Protect Amer-

ica’s Heartbeat” campaign and the NARFE-Alzheimer’s Fund.

“The bequests by James and Jackie Clark are extraordinary,” said NARFE National Treasurer Richard G. Thissen, who attended the recent Georgia Federation Convention, where the bequests were announced. “We are very grateful for their leadership during their lives and for their generosity in remembering NARFE in their wills.”

For chapter photos, see our Out and About Photo Gallery at www.narfe.org/narfemagazine.

NARFE NATIONAL LIFE MEMBERSHIP APPLICATION Life Membership Fee Schedule Ages

Contact Information n Mr. n Mrs. n Miss n Ms. Full Name _____________________________________________ Street Address _________________________________________ Apt./Unit______________________________________________ City _______________________ State _____ ZIP _____________ Phone (__________) ____________________________________ Email_________________________________________________ Date of Birth _________ /_________ /___________________ dd

mm

yyyy

Recruiter ID # (if applicable) _________________________________ Chapter Number _______________________________________ (call 800-456-8410 for chapter information) Membership Information Member Number: ______________________________________ (New members) Membership is open to civilians in any agency of the federal or D.C. (before Oct. 1, 1987) governments eligible for a federal annuity.

Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin.

Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes.

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Single or Quarterly Payment Installments 30-39 $1,796 $450.25 40-50 1,408 353.25 51-55 1,127 283.00 56-60 960 241.25 61-65 801 201.50 66-70 653 164.50 71-75 514 129.75 76-80 392 99.25 81-90 251 64.00 91-100+ 127 33.00

I am a (check all that apply) n Active Federal Employee n Active Federal Employee Spouse n Annuitant n Annuitant Spouse n Survivor Annuitant

PAYMENT INFORMATION n Single Payment or n Quarterly Installments (4 payments) Life Membership fee amount: $ ______________________ PAYMENT OPTIONS n Check or Money Order (Payable to NARFE) n Charge my: n MasterCard n VISA n Discover n American Express Card No. __________________________________________ Expiration Date _________ /_________ mm

yyyy

Name on Card ______________________________________ Signature ____________________________ Date ________ MAIL THIS APPLICATION TO NARFE Member Records 606 N. Washington St. / Alexandria, VA 22314-1914

Active and Retired Federal Employees ...

JOIN NARFE TODAY!

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

Who Should Join?

Three Easy Ways To Join 1.

2.

3.

N A R F E M E M B E R S H I P A P P L I C AT I O N n YES. I want to join NARFE. n Mr. n Mrs. n Miss n Ms. Full Name ________________________________________ Street Address ____________________________________ Apt./Unit ________________________________________

I am a (check all that apply) n n n n n

Active Federal Employee Active Federal Employee Spouse Annuitant Annuitant Spouse Survivor Annuitant

n Please enroll my spouse

City _______________________ State _____ zIP ________

Spouse’s Full Name ________________________________

Phone (__________) _______________________________

Spouse’s Email ____________________________________

Email____________________________________________

NARFE respects the privacy of our members. Personal information is used to provide content and relevant communications to our members, and will not be sold or rented to third parties without your express permission.

Choose Your Membership Type o Local Chapter Close-to-Home Membership — $45 Affiliation with the NARFE chapter closest to your home.

Receive narfe magazine each month; attend meetings, often with invited speakers; network; and get involved in grassroots lobbying efforts. $45 first-year dues X __________ = __________ Per Person # Enrolling Total Dues

PAYMENT OPTIONS n Check, Money Order or Bill Pay (Payable to NARFE) n Bill me (NARFE membership will start when payment is received.) n Charge my: n MasterCard n VISA n Discover n American Express Card No. _____________________________________

(First-year dues include national and chapter dues.)

Expiration Date _________ /_________

Chapter Affiliation (if known, otherwise enroll me in the chapter closest to my zIP code). Chapter #___ ___ ___ ___

Name on Card _________________________________

OR

Signature _____________________________________

o eNARFE Chapter Online Membership — $40

Date _________________________________________

NARFE’s electronic chapter. Receive narfe magazine by mail each month, and all other communications by email and on eNARFE.org. Get important updates and legislative action alerts, and have access to the eNARFE blog. $40 first-year dues X __________ = __________ Per Person # Enrolling Total Dues

mm

yyyy

MAY WE THANK SOMEONE? If applicable, please provide the name, membership and chapter number of the member who introduced you to NARFE: Recruiter’s Name __________________________________ Recruiter’s Membership ID __________________________ Recruiter’s Chapter Number _________________________

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

NARFE’s Dues Withholding Program What is dues withholding?

It is a dues-payment method that gives NARFE members (retirees) the option of having their annual NARFE membership dues deducted from their annuities on a monthly basis.

How does it work?

One-twelfth of your total dues is automatically deducted from your monthly annuity. Your monthly deduction is determined by the following formula: (National dues ÷ 12) + (Chapter dues ÷ 12) = Total Monthly Deduction

Advantages • Save 15% off your annual membership dues!

• Sign up your spouse and double your savings!

• You’ll never get another dues reminder from us!

• Your monthly payment is affordable and convenient!

• You may cancel your dues at any time!

Application process It takes 60-90 days to process your application. Once the process is complete, you will receive a special membership card distinguishing you as a NARFE dues-withholding member.

To learn more about dues withholding, call 800-627-3394.

Retirees, spouses of retirees and annuitant survivors are eligible for dues withholding.

NARFE Dues Withholding Application for Retirees ■ YES. I want to enroll in NARFE’s Dues Withholding Program (Annual dues of $34 plus Chapter dues of record to be withheld annually.)

Social Security Number (9-digit number)

–

Civil Service Annuity Number

–

C S

–

–

–

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

■ Mr. ■ Mrs. ■ Miss ■ Ms. Full Name _______________________________________

NARFE MEMBERSHIP INFORMATION

Street Address ___________________________________

NARFE Membership ID ____________________________________

Apt./Unit________________________________________ City _________________________ State _____ ZIP _____ Phone (__________) ______________________________ Email ___________________________________________ Date of Birth _________ /_________ / ____________________ dd

mm

yyyy

NARFE Chapter Number____________________________________

■ YES. I Also Authorize My (NARFE Member) Spouse’s Dues To Be Withheld From My Annuity. (Additional annual dues of $34 plus Chapter dues of record to be withheld annually.)

If YES, enter spouse’s information below.

Spouse’s Name ___________________________________________ Spouse’s Membership ID ___________________________________

AUTHORIZATION (Withholding will begin in 60-90 days). No payment should be forwarded with application.

I authorize the United States Office of Personnel Management to make appropriate deductions from my annuity payments, not to exceed the amount certified by the National Active and Retired Federal Employees Association as the amount of dues for which I am annually obligated, in accordance with elections I make below, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I make below: Please allow 60-90 days for processing.

I understand that this authorization shall be valid until NARFE receives and processes my written notice of cancellation in accordance with its agreement with the Office of Personnel Management and that any disputes regarding this authorization shall be a matter between NARFE and myself. I hold the Office of Personnel Management harmless for any erroneous allotment deduction made pursuant to this authorization. ___________________________________________________________________________ _______________________________

Signature of Annuitant or Survivor-Annuitant

Date

Dues payments and gifts or contributions to NARFE are not deductible as charitable contributions for federal income tax purposes.

MAIL THIS FORM TO: NARFE, ATTN: Member Records, 606 N. Washington St., Alexandria, VA 22314-1914 www.narfe.org 800-627-3394 rr@narfe.org Do not send money with this form

DW-2 (08/12)

Released to the Public: Bags of Vintage Buffalo Nickels Historic 1920-1938 “Buffalos” by the Pound

LOW AS

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$

plus shipping & handling

Actual size is 21.2 mm

FREE Stone Arrowhead with every bag Head Nickel (1883-1912), a valuable collector classic!

2013 marks the 100th anniversary of an American Classic: the Buffalo Nickel. To honor this milestone, New York Mint is releasing to the public bags of original U.S. government Buffalo Nickels not seen in circulation for decades. Now they can be acquired for a limited time only—not as individual collector coins, but by weight— just $49 for a full Quarter-Pound Bag.

100% Valuable Collector Coins—GUARANTEED! Every bag will be filled with collectible vintage Buffalos from over 70 years ago, GUARANTEED ONE OF EACH: • 1920-1929—“Roaring ’20s” Buffalo • 1930-1938—The Buffalo’s Last Decade • Mint Marks (P,D, and S) • ALL Collector Grade Very Good Condition • FREE Stone Arrowhead with each bag Every vintage Buffalo Nickel you receive will be a coveted collector coin—GUARANTEED! Plus, order a gigantic full Pound bag and you’ll also receive a vintage Liberty

Long-Vanished Buffalos Highly Coveted by Collectors Millions of these vintage Buffalo Nickels have worn out in circulation or been recalled and destroyed by the government.

Today, significant quantities can often only be found in private hoards and estate collections. As a result, these coins are becoming more sought-after each day.

In fact, the market price for Buffalo Nickels has risen 76% in the last ten years alone!

Supplies Limited—Order Now! Supplies of vintage Buffalo Nickels are limited as the availability continues to shrink. And the 100th anniversary is certain to drive demand up even further! They make a precious gift for your children, family and friends that will be appreciated for a lifetime.

NOTICE: Due to recent changes in the demand for vintage U.S. coins, this advertised price may change without notice. Call today to avoid disappointment.

Prices and availability subject to change without notice. Past performance is not a predictor of future performance. NOTE: New York Mint® is a private distributor of worldwide government coin and currency issues and privately issued licensed collectibles and is not affiliated with the United States government. Facts and figures deemed accurate as of October 2012. ©2013 New York Mint, LLC.

30-Day Money-Back Guarantee You must be 100% satisfied with your bag of Buffalo Nickels or return it within 30 days of receipt for a prompt refund (less s/h).

Order More and SAVE QUARTER POUND Buffalo Nickels Plus FREE Stone Arrowhead $49 + s/h HALF POUND Bag Plus FREE Stone Arrowhead $79 + s/h SAVE $19 ONE FULL POUND Bag Plus FREE Stone Arrowhead and Liberty Head Nickel $149 + s/h SAVE $47

FREE Liberty Head Nickel with One Full Pound

TOLL-FREE 24 HOURS A DAY

1-800-695-2018 Offer Code VBB186-01

Please mention this code when you call.

14101 Southcross Drive W., Dept. VBB186-01 Burnsville, Minnesota 55337 www.NewYorkMint.com

Member Perks

NARFE Member Perks

are designed to provide NARFE members with a quality option in their search for commonly used products and services.

NARFE makes no guarantee on any products and services listed, and encourages its members to shop and compare before making a decision on any financial matter.

Credit Union

NARFE Premier Federal Credit Union 800-328-1500 www.NARFEpremierfcu.org As a member of NARFE, you have the privilege of joining NARFE Premier Federal Credit Union, which has been serving members since 1935. We offer extensive services at competitive rates to members nationwide. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. For more information, call the number above, email jparish@narfepremierfcu.org or visit the website.

insurance

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

GEICO 800-368-2734 NARFE members with good driving records may be eligible for quality automobile insurance from GEICO. Ask about the NARFE discount available to members in many states. Call today for your free, no-obligation rate quote. Be sure to mention that you’re a NARFE member!

• Discount amount varies in 54

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some states • Discount not available in all states or in all GEICO companies • One group discount applicable per policy.

Federal Long Term Care Insurance Program 800-LTC FEDS www.LTCFEDS.com Long-term care is expensive, and it’s not covered by traditional types of insurance plans. With benefits designed specifically for the federal family, the Federal Long Term Care Insurance Program offers a smart way to help protect your savings and assets, and remain independent should you need long-term care services someday. Visit LTCFEDS.com today.

Wyndham Hotel Group 877-670-7088 As a member of NARFE, you will receive up to 20% off the “Best Available Rate” at participating locations.

Call and give the agent your special discount ID number, 8000002694, at time of booking to receive discount.

Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now.

Call our special member-benefits hotline 877-670-7088 and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®.

Vacation rentals

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

hotels

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

car rentals

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

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

Avis The employees/owners of Avis offer guaranteed low rates and quality services to members of NARFE. Call 800-331-1441 and mention ID# A991900.

narfe merchandise

NARFE General Store 855-99NARFE (855-996-2733) www.narfegeneralstore.com Official NARFE name badges, customizable logo products and plaques.

emergency services

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

Call MASA Today. It Could Save Your Life!

preventive health screenings, will conduct the following screenings using state-of-the-art ultrasound technology in your neighborhood: 1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease.

You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share these test results with your doctor. All four screenings cost just $135. To schedule an appointment, please call the number above and give the operator code number BKHN075 or visit the website. Coverage may vary and may not be available in all states.

hearing benefits Moving services

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

Bekins Van Lines 800-248-4810 www. narfe@bekins.com All NARFE members will receive discounted pricing for all interstate shipments. Discount will apply to packing and moving services and valuation protection. All intrastate shipments, local moves and international moves will be competitive based on your geographical location. Please mention you are a NARFE member and ask for Traci.

TruHearing 877-360-2442 Two discount programs to choose from: ValueAdd® or MemberPlus®. Similar to a warehouse membership, MemberPlus saves hundreds more for a $108 yearly membership. MemberPlus also includes: • 45-day, money-back guarantee on membership fee and all purchases • 48 batteries, 3-year warranty, and one-time loss and damage for 3 years (small manufacturer deductible applies) on each purchased hearing aid • Guest membership for up to four extended family members (siblings, parents, etc.) for only $79 each • Combine with an existing health plan hearing benefit to maximize savings.

education

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

Visit TruHearingMemberPlus.com for more information, or call 877360-2442, Mon-Fri, 9 a.m.-9 p.m. ET.

NOT A MEMBER? health screening

GO ONLINE: It’s easy to join online at www.narfe.org. Click “Join NARFE.”

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

TURN TO PAGE 51: Fill out the Membership Application and mail it to NARFE to receive all the perks of being a NARFE member.

Life Line Screening, America’s leading provider of community-based

Call (Toll-Free) 800-627-3394.

w w w. n a r f e . o r g

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The Way We Worked

getting the Lay of the land This photograph of General Land Office crews surveying Garden County, NE, in two feet of snow was taken on May 1, 1911. The General Land Office, a predecessor of the Bureau of Land Management, oversaw the surveying, platting and sale of the public lands in the western United States. Today, surveying is performed using modern equipment (satellites and electronic equipment) and vehicles (SUVs and helicopters).

Photo courtesy of Anne Musella, archivist, Bureau of Land Management; 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.

Website: http://shfg.org/shfg/.

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Did you know?

The Bureau of Land Management (BLM) is one of a handful of federal agencies that generates more revenue for the United States than it spends, according to the BLM website, www.blm.gov.

It administers more than 245 million surface acres and 700 million acres of sub-surface estate with a workforce of about 10,000 full-time employees.

ct

o N tra n o C

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GreatCall® created the Jitterbug with one thing in mind– to offer people a cell phone that’s easy to see and hear, simple to use and affordable. Now, they’ve made the cell phone experience even better with the Jitterbug Plus. It features a lightweight, comfortable design with a backlit keypad and big, legible numbers.

There is even a dial tone so you know the phone is ready to use. You can also increase the volume with one touch and the speaker’s been improved so you get great audio quality and can hear every word. The battery has been improved too– it’s one of the longest lasting on the market– so you won’t have to charge it as often. The phone comes to you with your account already set up and is easy to activate.

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not locked in for years at a time and won’t be subject to early termination fees. The U.S.-based customer service is knowledgeable and helpful and the phone gets service virtually anywhere in the continental U.S. Above all, you’ll get one-touch access to a friendly, and helpful GreatCall operator. They can look up numbers, and even dial them for you! They are always there to help you when you need them.

Call now and receive 100 FREE Minutes and FREE Car Charger – a $41.98 value. Try the Jitterbug The rate plans are simple too. Why pay for Available in Plus for yourself for 30 days and minutes you’ll never use? There are a variety Silver and Red. if you don’t love it, just return it for a of affordable plans. Plus, you don’t have to worry refund1 of the product purchase price. Call now – helpful Jitterbug about finding yourself stuck with no minutes– that’s the problem experts are ready to answer your questions. with prepaid phones. Since there is no contract to sign, you are

Order now and receive 100 Free Minutes and a Car Charger for your Jitterbug – a $41.98 value. Call now!

Jitterbug Plus Cell Phone

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Please mention promotional code 46757.

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We proudly accept the following credit cards.

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IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. All rate plans and services require the purchase of a Jitterbug phone and a one-time set up fee of $35. Coverage and service is not available everywhere. Other charges and restrictions may apply. Screen images simulated. There are no additional fees to call Jitterbug’s 24-hour U.S. Based Customer Service. However, for calls to an Operator in which a service is completed, minutes will be deducted from your monthly balance equal to the length of the call and any call connected by the Operator, plus an additional 5 minutes. Monthly minutes carry over and are available for 60 days. If you exceed the minute balance on your account, you will be billed at 35¢ for each minute used over the balance. Monthly rate plans do not include government taxes or assessment surcharges. Prices and fees subject to change. 1We will refund the full price of the Jitterbug phone if it is returned within 30 days of purchase in like-new condition.

We will also refund your first monthly service charge if you have less than 30 minutes of usage. If you have more than 30 minutes of usage, a per minute charge of 35 cents will apply for each minute over 30 minutes. The activation fee and shipping charges are not refundable. Jitterbug and GreatCall are registered trademarks of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics Co., Ltd. ©2013 Samsung Telecommunications America, LLC. ©2013 GreatCall, Inc. ©2013 by firstSTREET for Boomers and Beyond, Inc.

Our Most Innovative Fit-Forever Waistband yet — STEALTH! ®

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Haband #1 Bargain Place, Jessup, PA 18434-1834 Send ___ jeans. I enclose $________ purchase price plus $7.99 toward shipping. In GA add sales tax.

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When you pay by check, you authorize us to use information from your check to clear it electronically.

Funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.

Check here for Protection Plus! (X57)

Expedites replacement of items lost in transit.

Add $2.95 to protect your entire order.

For Faster Service Call: 1-800-543-4810 or visit www.Haband.com/bestdeals