cover story retirement planning myths

MAY

’17

Volume 93 • Number 5

P.30 LEGISLATIVE TRAINING CONFERENCE COVERAGE

P.36ANATOMY OF A SUPER ADVOCATE

P.22

COVER STORY

RETIREMENTPLANNINGMYTHS

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*The insured may need to submit for reimbursement. State and/or local taxes may apply. Prices and products subject to change. Blue Cross and Blue Shield Service Benefit Plan will pay a hearing aid benefit up to $2,500 every 3 calendar years for adults age 22 and over, and up to a $2,500 total per calendar year for members up to age 22. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in your Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under your Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefits first. To find out what is covered under your policy, contact the Service Benefit Plan. The products and services described herein are neither offered not guaranteed under any local Blue company’s contract with the Medicare program. In addition, these items are not subject to the Medicare appeals 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 item and vendors made available through Blue365, at any time. Blue Cross and Blue Shield Association is an association of independent, locally operated Blue Cross and Blue Shield Companies. State and local taxes and/or fees may apply. Available at participating locations until 12/31/17.

6 What to Expect From the FY2018 Budget Process

7 Bill Introduced to Repeal WEP/GPO

8 NARFE Supports Bill to Provide a Fair COLA

10 Tell NARFE About Your Advocacy Success

12 NARFE Bill Tracker

ON THE COVERIllustration by Bill Pragluski, Critical Stages, LLC

DEPARTMENTS

14 Questions & Answers

44 For the Record: TSP Returns, Retirement Claims Status, Countdown to COLA

46 NARFE News

52 The Way We Worked

30 Legislative Training Conference

36 Anatomy of a Super Advocate

MAY

’17

22 RETIREMENT PLANNING MYTHS. Take the quiz to test your understanding of 10 things you probably didn’t know about retirement planning.

4 From the President

40 Managing Money

42 The Informed Citizen

WASHINGTON WATCH

COLUMNS

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COVER STORY

SPECIAL SECTIONS

W W W. NA R F E .ORG | 1

30LEGISLATIVE TRAINING CONFERENCE. NARFE members geared up to fight cuts to pay and benefits as they took their message to Capitol Hill.

2 | M AY 2 017

MAY 2017 | Volume 93 | Number 5

National Active and Retired Federal Employees Association

NATIONAL OFFICERSRICHARD G. THISSEN, President; [email protected] DOWIE, Secretary/Treasurer; [email protected]

REGIONAL VICE PRESIDENTSREGION I James P. Crawford(Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont)TEL: 603-630-5191EMAIL: [email protected]

REGION II Evelyn Kirby(Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) TEL: 410-604-1141EMAIL: [email protected]

REGION III Clarence Robinson(Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands)CELL: 404-312-8028EMAIL: [email protected]

REGION IV Edward J. Konys(Illinois, Indiana, Michigan, Ohio and Wisconsin)TEL: 937-470-0566EMAIL: [email protected]

REGION V Carol R. Ek(Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) TEL: 620-241-1131, CELL: 620-504-2202 EMAIL: [email protected]

REGION VI Marshall L. Richards(Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) TEL: 903-660-2784 EMAIL: [email protected]

REGION VII Rodney L. Adelman(Arizona, Colorado, New Mexico, Utah and Wyoming) TEL: 623-505-4719 EMAIL: [email protected]

REGION VIII Helen L. Zajac(California, Guam, Hawaii, Nevada and Republic of Philippines)TEL: 707-644-7565 EMAIL: [email protected]

REGION IX Richard Wilson(Alaska, Idaho, Montana, Oregon and Washington) TEL: 253-210-5609, CELL: 425-736-6899 EMAIL: [email protected]

REGION X William Shackelford(Kentucky, North Carolina, Tennessee, Virginia and West Virginia) TEL: 703-830-6590, CELL: 703-201-6304EMAIL: [email protected]

TO JOIN NARFE, RENEW YOUR MEMBERSHIP OR FIND A LOCAL CHAPTER:CALL (TOLL-FREE) 800-627-3394 OR GO TO www.narfe.org

TO CHANGE YOUR ADDRESS, PHONE NUMBER OR EMAIL LISTING:CALL (TOLL-FREE) 800-456-8410, EMAIL [email protected] OR GO TO www.narfe.org, log in and click on “Update My Record”

TO REACH A FEDERAL BENEFITS SPECIALIST:EMAIL [email protected]

NARFE HEADQUARTERS 606 N. Washington St.Alexandria, VA 22314703-838-7760

HERE’S HOW TO CONTACT US…

www.narfe.org

EDITOR Susan Boswell

EDITORIAL ADMINISTRATOR Toni Vallario

GRAPHIC DESIGN Charlene Gridley

EDITORIAL BOARDRichard G. Thissen, Jon Dowie

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narfe (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $40. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2017, 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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A NEW CONGRESS, MYRIAD ISSUES

RICHARD G. THISSEN

NARFE NATIONAL [email protected]

There are myriad issues facing us this year as federal and postal employees, annuitants and seniors.

So far, we have avoided any direct hits on our benefits during the fiscal year 2017 budget discussions.

premiums for enrollees, and even the elimination of FEHBP coverage for future retirees. There is discussion of abolishing the Federal Employees Retirement System (FERS) for new hires, which removes one of the three “legs” of the retirement system, and ending supplemental payments for FERS employees who retire before age 62. There is talk about revising the rate of return for the Thrift Savings Plan G Fund, and changing the computation for the annuity for current employ-ees from the highest three years of earnings to the highest five years. Efforts also are underway to weaken due process appeal rights.

As you know, a federal hiring freeze has been implemented with reductions in the federal work-force through attrition. The House passed the Holman Rule, which allows amendments from the floor without committee review during the ap-propriations process. This rule, reinstated in the House rules only for 2017, can be used to decrease the salary or fire a specific individual, or to reduce the size of an agency or program. On top of all of this, the Postal Reform Act (H.R. 756) would force current postal retirees to enroll in Medicare Part B in order to retain their FEHBP coverage, which removes their choice in health care decisions and sets a dangerous precedent for all federal retirees.

Be assured we will continue to fight all of these issues and send Action Alerts for grassroots action as needed.

As I write this, Congress is focused on how to replace the Affordable Care Act (ACA). So far, the Federal Employees Health Benefits Program (FEHBP) wouldn’t be directly impacted, but we will continue to monitor ACA discussions.

As the House and Senate tackle FY 2018 budget deliberations, many issues that we defeated dur-ing the last session of Congress are now reappear-ing. These proposals include voucher payments for the FEHBP that are limited to the cost-of-living increase, resulting in a higher share of

NARFE’s Mission StatementTo support legislation and regulations beneficial to federal civilian employees and annuitants and potential annuitants under any federal civilian retirement system and to oppose those detrimental to their interests.

To promote the general welfare of federal civilian employ-ees and annuitants and potential annuitants, to advise and assist them with respect to their rights under retirement, health and other employee and retiree benefits laws and regulations, and to represent their interests before appro-priate authorities.

To cooperate with other organizations and associations in furtherance of these general objectives.

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THE FISCAL YEAR 2018 BUDGET PROCESS: WHAT TO EXPECT

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On March 16, President Trump released his first “skinny bud-get” for fiscal year 2018, which includes a $54 billion increase in Department of Defense spending, offset by a parallel cut in non-defense discretionary spending. For federal employees, the most significant impact of these cuts will be in “salary and expense” accounts, namely, the funding source for pay and benefits for active federal employees. The full budget, including policy priori-ties and mandatory spending, is expected to be released by the administration in mid-May.

By tradition, the House and Senate Budget Committees assemble a FY 2018 Budget Resolution, taking the president’s proposal under advisement and

deciding on spending and rev-enue priorities for the fiscal year beginning on Oct. 1, 2017. By April 15, the House and Senate are to complete the action and agree, in conference, on a common bud-get blueprint. At that point, the House and Senate Appropriations Committees are allocated an ag-gregate pool of money which they

divide among their respective 12 subcommittees covering the range of services and activities carried out by the federal government. Whether Congress agrees to the president’s Pentagon increase at the expense of programs ranging from child nutrition to medical research, and environmental pro-tection to veterans’ health care, remains to be seen.

The budget resolution confer-ence report also is the mecha-nism that triggers the budget reconciliation process. At this point, NARFE members would be wise to pay attention, as recon-ciliation is sent to the president, while the budget resolution is not.

NARFE members are all too familiar with the damage done to their compensation and benefits over the years through the congressional budget process, particularly

reconciliation. However, it’s worth a recap of the 43-year-old budget process, established by the Congressional Budget Act of 1974, to know where we are and where we are going.

Do you think that your meager 0.3 percent cost-of-living adjustment (COLA) this year is inadequate? Contact your representative using NARFE’s Legislative Action Center to urge him or her to support changing the calculation of the annual COLA to the more accurate Consumer Price Index for the Elderly (CPI-E). Urge your representative to cosponsor the CPI-E Act of 2017 (H.R. 1251) today! Visit the Action Center at www.narfe.org/legislation/votervoice.cfm.

ACTION ALERT! MAY

If the budget conferees decide on specific reductions in entitlement and direct spending programs, they include instructions to con-gressional committees to recom-mend changes in laws within their jurisdiction sufficient to reduce the deficit by specified amounts. These instructions trigger legisla-tion that enjoys special treatment in the legislative process – it requires only a simple majority for passage in the Senate. This is the reason that the new Congress is using the reconciliation process as the vehicle for reform of the Affordable Care Act.

As a note of caution, specific proposals for changes in the com-pensation and benefits of federal employees and retirees could be high on the priority list. However, the prospect of sweeping changes is doubtful with the late confirma-tion of Mick Mulvaney, the new director of the Office of Manage-ment and Budget, coupled with Congress’ desire to use the recon-ciliation process as the vehicle for tax reform in FY 2018.

A further caveat is that the federal government is currently operating under a Continu-ing Resolution that expires on April 28, 2017. Although the new president could take an aggres-sive budget stance to either make policy or reduce the size of gov-ernment, it does not appear that Congress will tinker significantly with the status quo in funding agencies through the end of FY 2017. Stay tuned!—ALAN LOPATIN, LEGISLATIVE COUNSEL

BILL TO REPEAL WEP/GPO REINTRODUCED IN HOUSE

A bill to repeal the Gov-ernment Pension Offset (GPO) and Windfall

Elimination Provision (WEP) has been reintroduced in the House by Rep. Rodney Davis, R-IL. The Social Security Fairness Act of 2017, H.R. 1205, was submitted to Congress on February 21 and now resides in the House Committee on Ways and Means for further deliberation. As of press time, the bill has bipartisan support with 97 cosponsors.

Similar legislation was intro-duced in the previous Congress but failed to see action due to the high costs associated with out-right repeal of both provisions.

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. The WEP greatly reduces the Social Security benefits of approximately 1.5 million federal retirees who worked in Social Security-covered employment and who receive an annuity based on their government job which is not covered by Social Security.

NARFE has long opposed both the WEP and GPO provisions and is working with the Coali-tion to Assure Retirement Equity (CARE), which NARFE helped

create in 1991, to end these unfair penalties.

It is vital that NARFE members urge their members of Congress to cosponsor this piece of leg-islation. Garnering support for this bill creates a starting point for eventual consideration and future reforms of these penalties. NARFE members can easily send their legislators a letter urging them to cosponsor H.R. 1205 via the NARFE Legislative Action Center on www.narfe.org. —ROSS APTER, LEGISLATIVE ASSISTANT

Legislative Resources

• Legislative Hotline: A weekly update of legisla-tive news, compiled by the NARFE Legislative Department staff, distrib-uted via email and avail-able 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.

W W W. N A R F E . O R G | 7

NARFE SUPPORTS BILL TO PROVIDE A FAIR COST-OF-LIVING ADJUSTMENT

N ARFE President Richard G. Thissen joined Rep. John Garamendi, D-CA,

and other supporting organiza-tions at a March 1 press confer-ence to support legislation provid-ing fair cost-of-living adjustments (COLAs) for federal and military retirees and seniors collecting Social Security benefits, among others.

Rep. Garamendi introduced H.R. 1251, the CPI-E Act of 2017, which would require federal retirement programs to use the Consumer Price Index for the Elderly (CPI-E) to calculate COLAs instead of the current Consumer Price Index for Urban Wage Earn-ers and Clerical Workers (CPI-W).

At the press conference, Thissen put it in layman’s terms: “While the CPI-E Act of 2017 amends a complex calculation, it provides a rather simple improvement, rooted in common sense. What this bill says to seniors is that your cost-of-living adjustment will more accurately reflect your cost of living. That’s it! It’s that simple!”

Use of the current index is cost-ing seniors, including federal civil-ian and military retirees, precious dollars every year. The 2017 COLA was 0.3 percent, and the year be-fore, there was no COLA at all.

Yet, over these two years, the actual cost of living incurred by seniors increased by 2.7 percent — 2.1 percent in 2016 and 0.6 percent in 2015. For the average federal annuitant, that would have meant an increase of approxi-mately $950 per year. That is from just the last two years. Over time,

the difference adds up to tens of thousands of dollars.

The reason the current index (the CPI-W) is used is because it was the only index available in 1972 when Congress first made COLAs automatic. Since then, the Bureau of Labor Statistics (BLS) has been calculating an index measuring prices experienced by those age 62 and older, called the CPI-E.

Between 1982 and 2014, BLS showed prices increased for those individuals by 0.2 percent-age points more per year, on average.

This is the result of different spending habits by seniors. Nota-bly, seniors rely more on medical care and medical price increases have far outpaced the price in-creases for other consumer goods.

NARFE joined Rep. Gara-mendi, Social Security Works, the National Committee to Protect Social Security and Medicare, and others at the March press conference to promote the CPI-E Act. However, without more sup-port, the bill is unlikely to receive

serious congressional consider-ation. Despite the overwhelming common sense behind the fix to seniors’ COLAs, this Congress is very unlikely to authorize an increase in spending on Social Se-curity, federal or military retire-ment benefits. Such a spending increase, without corresponding cuts or revenue increases, would increase government deficits, which many in Congress want to reduce. While this Congress may still increase deficits this term, it is likely to do so only in pursuit of top legislative priorities, such as cutting certain taxes through the repeal and replacement of the Affordable Care Act, potential revenue reductions from tax re-form or infrastructure spending increases.

Popular support influences congressional priorities, and with enough support from their voters for fair COLAs, even the most ardent deficit hawks might find a way to offset the costs elsewhere in the budget. As they say, where there is a will, there’s a way.—JOHN HATTON, DEPUTY LEGISLATIVE DIRECTOR

“What this bill says to seniors is that your cost-of-living adjustment will more accurately reflect your cost of living. That’s it! It’s that simple!”

—Richard ThissenNARFE President Richard Thissen and Rep. John Garamendi

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NARFE’s CONGRESSIONAL DIRECTORY

for the 115th Congress (2017-2018)

Features:• Members of Congress by state delegation,

with color photos, biographical data and congressional district maps.

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

• Complete listings of committees, subcommittees and leadership.

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

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

Order your copy of the new CONGRESSIONAL DIRECTORY today!Name ___________________________________________________________________

Address _________________________________________________________________

City _________________________________________ State ______ ZIP ____________

Member ID# (as it appears on narfe magazine label) _____________________________

o Check (payable to NARFE) or cash enclosed

o Charge my credit card o MasterCard o VISA o Discover o AMEX

Card # __________________________________________________________________

Exp. Date _______ / _______ (mm) (yy)

Name on card (print) ______________________________________________________

Signature ____________________________________________ Date _____________

Please allow 2-3 weeks for delivery. Call NARFE’s Legislative Department at 703-838-7760 to order by phone.

Quantity ________________$20 each (includes shipping and handling)

VA sales tax _____________VA residents add 6% tax ($1.20) per book

Total cost _______________

Only $20

Mail to: NARFE Congressional Directory

606 N. Washington StreetAlexandria, VA 22314-1914

H ave you attended a meet-ing or event recently with your legislator or their

staff? Tell NARFE’s Legislative Department the details by filling out the “Congressional Meeting and Event Feedback Form” in the NARFE Legislative Action Center. This simple form makes it easy for NARFE members to provide feedback, and also helps us keep a record of your contacts with your legislators. Submitting this form helps NARFE’s Legisla-tive staff keep up-to-date on your legislator’s stance on NARFE is-sues, which in turn helps NARFE lobby effectively on Capitol Hill. We thank you for your advocacy efforts, and appreciate the time you have taken to represent NARFE – so tell us about what you’ve done!

CONGRESSIONAL MEETINGSWhen you meet with your legis-lator or staff, you are making a commitment to speak on behalf of the federal community. Whether you attended a meeting with your legislators and their staff in their district office or in Washington, DC, knowing the details of your meeting, including the list of top-ics you discussed and any perti-nent information about federal employees or retirees, allows NARFE lobbyists to reiterate your message on Capitol Hill.

It is crucial that NARFE’s Legis-lative Department is made aware of the content of these meetings so we are united in our efforts.

TOWN HALLSAfter you attend a town hall

event wearing your NARFE gear, or participate in a telephone town hall, and ask a question about your legislator’s position on an issue affecting the federal com-munity, we want to hear what your legislator had to say! Even if your question was not answered during the event, your attendance and participation as a represen-tative of NARFE helps build a relationship with that member of Congress and/or their staff, and demonstrates NARFE’s dedica-tion to protecting the earned pay and benefits of federal employees and retirees.

COMMUNITY EVENTS AND ENCOUNTERSSometimes it’s easy to forget, but members of Congress are part of their community. You may run into your legislator when you least expect it! Maybe you’ll see your representative at your town’s annual Memorial Day parade and have a chance to talk about issues affecting federal employees and retirees. If so, tell us about it! Some NARFE members drop off a copy of narfe magazine at their legislator’s district office each month. All of

these encounters help build rela-tionships as well as recognition of NARFE and our top legislative priorities.

While the details are fresh in your mind, be sure to visit the new NARFE Legislative Action Center and submit the Congres-sional Meeting and Event Feed-back Form.

The Legislative Department appreciates your time and advocacy efforts! If you have any questions, please email the Legislative Department at [email protected]. —MOLLY CHECKSFIELD, GRASSROOTS PROGRAM MANAGER

YOU’VE PUT ADVOCACY INTO ACTION — LET US KNOW OF YOUR SUCCESS!

REALITY: The G Fund is invested in the same U.S. Treasury securities as the civil service pension fund and Social Security. Decreasing the rate of return would cause federal employees and retirees, as well as military personnel and retirees, to flee the safest investment the TSP has to offer, and as a result, the projected savings would never be realized.

MYTH: The current rate of return on the Thrift Savings Plan (TSP) G Fund does not correspond with the investment risk incurred and should be changed.

MYTH vs.

REALITY

All of these encounters help build relationships as well as recognition of NARFE and our top legislative priorities.

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NARFE’s Position: Support Oppose No position

ISSUE BILL NUMBER / NAME / SPONSOR WHAT BILL WOULD DO LATEST ACTION(S)

POSTAL REFORM

H.R. 756: Postal Service Reform Act of 2017 / Rep. Jason Chaffetz, R-UT

Cosponsors: 7 (D), 6 (R)

H.Res. 15: Expresses the sense of the House that the U.S. Postal Service should take all appropriate mea-sures to ensure the continu-ation of six-day delivery / Rep. Sam Graves, R-MO Cosponsors: 113 (D), 38 (R)

H.Res. 31: Expresses the sense of the House that the Postal Service should take all measures to restore service standards in effect on July 1, 2012 / Rep. Dave McKinley, R-WV


H.Res. 28: Expresses the sense of the House that the U.S. Postal Service should take all measures to ensure the continuation of door-to-door delivery for all businesses and residential customers / Rep. Susan Davis, D-CA


Requires postal retirees to enroll in Medicare in order to continue receiving their cur-rent federal health insurance coverage. Enrollment would be automatic.

Expresses the sense of the House that the U.S. Postal Ser-vice should maintain six-day mail delivery. As a resolution, it will not be sent to the presi-dent and, therefore, cannot become law.

Expresses the sense of the House that the U.S. Postal Service should restore service standards as of July 1, 2012. As a resolution, it will not be sent to the president and, therefore, cannot become law.

Expresses the sense of the House that the U.S. Postal Service should continue door-to-door delivery for businesses and residential customers. As a resolution, it will not be sent to the president and, therefore, cannot become law.

Referred to the House Committee on Oversight and Government Reform and two other committees

narfe, April 2017

Referred to the House Committee on Oversight and Gov-ernment Reform



FEDERAL COMPENSATION

H.R. 757: The Federal Ad-justment of Income Rates (FAIR) Act / Rep. Gerald E. Connolly, D-VA


S. 255: The Federal Ad-justment of Income Rates (FAIR) Act / Sen. Brian Schatz, D-HI

Cosponsors: 7 (D)

Provides for a 2.0 percent pay raise for federal employees and 1.2 percent increase in locality pay in 2018.


Referred to the Senate Homeland Security and Governmental Affairs Committee

narfe, April 2017

TAXES

H.R. 396: Tax Accountabil-ity Act of 2017 / Rep. Jason Chaffetz, R-UT

Cosponsors: 0

Mandates that no individual with an unpaid tax liability can be eligible for federal employ-ment. Requires agencies to review employee’s tax liability.


narfe, April 2017

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

NARfE BILL TRACkER

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NARFE’s Position: Support Oppose No position

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

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

ISSUE BILL NUMBER / NAME / SPONSOR WHAT BILL WOULD DO LATEST ACTION(S)

CAMPAIGN FINANCE

H.R. 20: The Government By the People Act of 2017 / Rep. John Sarbanes, D-MD


Reforms campaign finance laws to put small donors on par with wealthier donors. Provides a tax credit for contributions and government matching contributions.

Referred to three House committees

GPO/WEP

H.R. 1205: Social Security Fairness Act of 2017 / Rep. Rodney Davis (R-IL) Cosponsors: 74 (D), 23 (R)

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

Referred to the House Committee on Ways and Means

See story, p. 7

COLA

H.R. 1251: CPI-E Act of 2017 / Rep. John Garamendi (D-CA)


Requires Social Security and many federal retirement pro-grams to use the Consumer Price Index for the Elderly (CPI-E) to calculate cost-of-living ad-justments in retirement benefits.

Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Government Reform, and Armed ServicesSee story, p. 8

Sustainers receive a Sustainer lapel pin and cozy fleece NARFE blanket.

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.

q Charge my credit card (required for monthly contribution) q MasterCard q VISA q Discover q AMEX

Card #: ________________________________________________

Exp. Date: _____ /_________ mm yyyy

Name on Card: _________________________________________

Signature: _____________________________________________

Date: _________________________

Or mail check payable to NARFE-PAC to: NARFE Attn. Budget & Finance 606 North Washington St. | Alexandria, VA 22314

NARFE Member #: _________________________________________

Name: __________________________________________________

Address: ________________________________________________

City: _________________________________________________

State: ___________ ZIP: _______________

Contribute To NARFE-PACI want to make a one-time contribution:q $250 – Gold lapel pin and blanket

q $100 – Silver lapel pin

q $50 – Bronze lapel pin

q $25 – Basic lapel pin

q Other: _________

q Please do not send any gifts for my contribution (This saves NARFE-PAC money!)

ORI want to make a monthly sustainer credit card contribution:q $25/month

q $10/month q Other: ______/month ($10 minimum)

W W W. N A R F E . O R G | 13

A One must be a federal employee to put money into the TSP. If you are

not re-employed in federal service, you will not be able to contrib-ute to your TSP account after retirement.

PARTIAL SURVIVOR ANNUITY ELECTIONS

Q I am in contact with someone who is retiring under the Civil Service

Retirement System (CSRS) and who would like more information about taking the partial survivor annuity. He is not sure how much to leave for his spouse and how the benefit is calculated.

Q When I retire in June 2017, I don’t plan on doing anything with my Thrift Savings Plan (TSP). If I am employed after retire-ment, could I make contributions to

the TSP?

EMPLOYEES

The following Questions & Answers were compiled by NARFE’s Federal Benefits Service Department staff. NARFE does not provide advice or assistance on legal, financial planning or tax matters.

A On form 2801, “Applica-tion for Immediate Retire-ment (CSRS),” there are

three boxes in Section F, “Annuity Election,” to choose from:

Box 1: This election provides the maximum survivor annuity payable. The survivor will receive 55 percent of the full unreduced gross annuity the retiree is receiv-ing at the time of his or her death.

Box 2: This election provides for less than the maximum survivor annuity. If the retiree puts a dollar amount on which to base the survivor benefit, upon the retiree’s death, the survivor will receive 55 percent of the amount stated. Box 2 Example: If the retiree specifies an amount of

$5,000, then upon his/her death, the survivor will receive 55 per-cent of $5,000 or $2,750 per year in gross survivor annuity.

Box 3: This election does not provide a survivor annuity to the current spouse.

If the retiree elects either Box 2 or Box 3, the current spouse must consent in writing.

FLTCIP COVERAGE FOR ADOPTED GRANDCHILD

Q I have made contribu-tions to my Federal Long Term Care Insurance

Program (FLTCIP) plan and have an adopted grandchild. Will my adopted grandchild be eligible to apply for coverage?

A Yes, adult children (at least 18 years old, includ-ing adopted and stepchil-

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TSP CONTRIBUTIONS AFTER RETIREMENT

14 | M AY 2 0 17

dren) of living eligible employees and annuitants may apply. Many members of the federal family are eligible to apply for cover-age under FLTCIP, including federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, as well as qualified relatives. Federal family members can apply for coverage anytime; they do not have to wait for the next Open Season. Pre-miums are based on the age and the premium rates in effect at the time an application is received. The younger you are when you apply, the lower your premium will be.

2017 MEDICARE PART B PREMIUMS

Q I am single and have been receiving Social Security disability benefits for 24

months as a Federal Employees Retirement System (FERS) dis-ability annuitant. I received my Medicare card for Medicare Part B and the premium was $134 and not $109. Why aren’t the premi-ums the lower price?

A New Medicare benefi-ciaries for 2017 who file an individual tax return

with income less than or equal to $85,000 will pay a monthly pre-mium of $134. As a new enrollee, the hold harmless clause, which prevents your Social Security benefits from decreasing due to Part B premiums, does not apply. Beneficiaries who were enrolled in Medicare prior to 2017 and who

were paying the basic premium of $104.90 from their Social Security benefits will pay on average $109 per month for 2017.

MEDICARE NUMBER ENDS WITH A “T”

Q I have a Medicare card with the letter “T” at the end of my Medicare number. Will

this card permit me to use the Medi-care card for my doctor visit?

A The letter “T” indicates that you are eligible for Medicare Part A (hospital)

benefits but are not eligible for Social Security retirement benefits. You are not enrolled in Medicare Part B (physician, medical).

SOCIAL SECURITY RETIREMENT AGE

Q I am retired under the Fed-eral Employees Retirement System (FERS) and started

receiving my annuity at age 62. I continued working under Social Security after my retirement. What is my full retirement age under Social Security?

A Traditionally, the full benefit age was 65, and early retirement benefits

were first available at age 62, with a permanent reduction of 80 per-cent of the full benefit amount. Currently, the full benefit age is 66 for individuals born between 1943-1954, and the full benefit age gradually rises to 67 for those born in 1960 or later.

SUSPENDING FEHBP PLAN COVERAGE

Q I am a Civil Service Retire-ment System (CSRS) annuitant and elected to

obtain a Medicare Advantage plan and have family coverage on my FEHBP plan. Do the rules permit me to “suspend” my FEHBP plan coverage?

A Yes, if you are a CSRS annuitant and elected a Medicare Advantage plan,

and have family coverage on your FEHBP plan, the rules permit you to “suspend” your FEHBP cover-age. To do so, contact the Office of Personnel Management (OPM) and request form RI 79-9, or download the form from the OPM website under “Retirement” and then “Publications and Forms.”

WAGES AND SOCIAL SECURITY BENEFITS

Q I retired from the Depart-ment of Veterans Affairs in January 2015, and turned

65 in August of that year. I didn't start collecting Social Security benefits until Jan. 1, 2017. Someone told me that this year, there is a new law that states that now that I am 66, I can earn as much money as I want and it will not affect my Social Security benefit. Is this cor-rect? How much money can I earn while receiving Social Security? Would I pay Social Security taxes?

A There is no income limit on earnings while receiv-ing Social Security after

you reach your full retirement

W W W. N A R F E . O R G | 15

age for Social Security. However, if you receive Social Security benefits before reaching your full retirement age, your benefit may be reduced $1 for every $2 you earn over the earnings limit. For 2017, the earnings limit is $16,920. If you are working, your employer is required to withhold Social Security taxes even if you are receiving benefits.

UNEMPLOYMENT COMPENSATION DENIAL

Q I receive a Civil Service Retirement System (CSRS) annuity. I was laid

off and applied for unemployment but was denied due to the 50 per-cent offset. Other CSRS employ-ees who have worked for the

same company and receive similar annuities are receiving unemploy-ment benefits from Rhode Island. Does the 50 percent offset apply to CSRS annuities?

A State unemployment compensation law is not an area in which we have

much specialized knowledge. In our research, we found informa-tion that you may already know but we will provide it here. For Rhode Island: “If an unemploy-ment compensation recipient receives a pension benefit to which he contributed (including Social Security), his compensation is reduced by 50 percent of the amount of the pension. If he did not contribute to the pension, the entire amount is offset

(RI General Laws, Section 28-44-19). The offset only applies if the recipient's base period employer contributed to the pension. Thus, if the employee receives a Social Security pension, there would be an offset in most cases since his base period employer would have paid Social Security taxes for the employee. On the other hand, if the employee receives a pension from an employer for whom he last worked 10 years ago, there would not be an offset.”

TRANSFER OF ANNUITY TO A SURVIVOR

Q A friend of mine who died was receiving monthly benefits, and I assume

his wife will need to fill out some

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Not a member? Join NARFE today to access all NARFE Federal Benefits Institute resources and events: www.narfe.org/join.

NARFE Federal Benefits Institute www.NARFE.org/Institute

Federal Retirement Made Simple with NARFE WebinarsYou are just a click away from expert guidance on the confusing issues surrounding federal benefits and retirement. Access these online resources, exclusively for NARFE members.

Register Now! Upcoming Webinars! Tammy Flanagan makes federal ben-

efits manageable! A skilled presenter and acclaimed expert, she helps feds set and achieve their retirement goals.

Mark your calendar for these upcoming NARFE programs, presented by federal benefits and retirement experts.

FREE for NARFE Members in the NARFE Federal Benefits Institute

May 11 Estate Planning June 22 Creating a Second Career July 27 Survivor Benefits

See the full schedule at www.narfe.org/institute

Mark Keen, CFP, narfe magazine’s “Managing Money” columnist, helps feds achieve the retirement of their dreams with straightforward plans and saving strategies.

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paperwork to receive these ben-efits. Can you give me some guid-ance on what she needs to do?

A If the deceased was a retired federal employee receiving a monthly

annuity from the Office of Person-nel Management (OPM), then the spouse needs to contact that agency to report the retiree’s death. There are several ways to contact OPM to report the death. Call OPM at 1-888-767-6738, email [email protected] or visit www.servicesonline.opm.gov/RSR/AnnuitantDeath/ ReportAnnuitantDeath. OPM will need the deceased retiree’s retire-ment claim number, or the Civil Service Annuity (CSA) number, name and date of death as well as contact information.

About three weeks after OPM receives the notification of death, they will send a package to the surviving spouse containing death claim forms for monthly survi-vor benefits and for any Federal Employees’ Group Life Insurance (FEGLI) proceeds, if applicable.

ANNUITY DEDUCTIONS FOR HEALTH INSURANCE

QI am working on my taxes and do not understand the total for insurance

premiums on CSA 1099-R, “State-ment of Annuity Paid,” in Box 5. The number shown does not equal the 12 monthly deductions from my annuity, from January 2016 to December 2016, cover-ing my health insurance, dental insurance and Medicare. The total shown in the box is significantly less than the deductions that were taken. Could you help me understand this? I have not been

able to find an explanation on the Office of Personnel Management website.

A I’m not sure how much help we can be on this issue. Our long-

time understanding is that an annuitant’s health insurance premiums and Medicare Part B premiums (if they are with-held from the monthly annuity and not by Social Security) are included in the amount shown in Box 5 of the Civil Service Annu-ity (CSA) 1099-R. Federal dental and vision insurance premiums have never been included in Box 5 but can be obtained separately from BENEFEDS by calling 1-877-888-3337.

SURVIVOR BENEFITS FOR DISABLED ADULT CHILD

QThe March 2017 issue of narfe magazine (p. 15), states that an adult child

with a permanent disability would be eligible for a monthly survivor benefit and continued coverage under the Federal Employees Health Benefits Program (FEHBP). Is there an age requirement for the onset of the disability to qualify for this benefit? My son was disabled at age 21 and is still on my FEHBP policy at age 32. I was under the impression that he would not be eligible for survivor benefits.

A There are two different laws involved for the FEHBP and the Civil Ser-

vice Retirement System (CSRS). Until 2010, the law governing the FEHBP allowed adult children with disabilities to be covered for health insurance as a depen-dent if the disabling condition

occurred prior to age 22. After passage of the Affordable Care Act, the FEHBP law changed to state that the disabling condition had to have occurred prior to age 26. However, the changes to the health benefits coverage did not change the CSRS law concerning eligibility for a disabled adult child to receive a monthly survivor ben-efit upon the death of the retiree. To be eligible for the monthly survivor benefit, the onset of the disabling condition must have occurred prior to age 18 and the child must be unmarried and inca-pable of self-support.

MEDICARE PREMIUM PAYMENTS FROM ANNUITY

Q I am a Civil Service Retirement System (CSRS) retiree newly

enrolled in Medicare Part B. How do I arrange to have my Medicare Part B premium paid automati-cally by the Office of Personnel Management (OPM) out of my monthly annuity?

A You can visit your local Social Security Admin-istration (SSA) office to

request to have your Medicare Part B premiums withheld from your monthly CSRS annuity, provided you are not eligible for any of the following: Social Security benefits, Railroad Retirement benefits or cover-age under a state buy-in agree-ment. In addition, an individual who meets the above condi-tion also may request to have their spouse’s Medicare Part B premiums withheld from the same annuity payment as long as the spouse also meets those requirements. After you make

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your request, SSA will send the information to Medicare, which will then send to OPM the amount of Medicare Part B premiums to be withheld each month. The process may take several pay cycles before the annuity payment reflects the deduction. In addition, NARFE members have told us that per-sonnel at some SSA offices are unaware of this process. In this case, either request the assistance of a supervisor, or refer the cus-tomer service representative to the SSA Program Operations Manual System, section HI 00805.245, titled “Development for SMI Enrollment of Civil Service Annui-tants and Their Spouses.”

OBTAINING DEFERRED RETIREMENT BENEFITS

Q I retired in 2000 after 27 years of service as a fed-eral employee. I am now

62 years old and would like to know how to obtain my deferred retirement benefits. In the Office of Personnel Management form 1496A, “Application for Deferred Retirement,” it states, “Records on file with the Office of Personnel Management (OPM) indicate that you may be eligible for a deferred annuity beginning on the ‘commenc-ing date’ shown above. To apply for your annuity, complete the enclosed Application for Deferred Retire-ment and return it to OPM. See the enclosed information.”

Based on the above, it appears to me that they will send some informa-tion to me along with the application. Do I wait for OPM to contact me with this information, or do I need to contact them?

A We don’t think you should count on OPM initiating your retirement. Write to

them at P.O. Box 45, Boyers, PA 16017, Attention: Deferred Retire-ment. In your request, provide OPM with the following so they can identify your records: any names you have used while working, date of birth, Social Security number, your current name, address and phone number, email address, your last agency name and location and when

W W W. N A R F E . O R G | 19

you left federal service. OPM will pull your retirement file and respond by mail.

PREMIUM EXCLUSIONS FOR TAX YEAR 2016

Q I’m a retired federal law enforcement officer and have been using an old

copy of the Internal Revenue Service Publication 721, “Tax Guide to U.S. Civil Service Retire-ment Benefits” to exclude a portion of my Federal Employees Health Benefits Program (FEHBP) premium when I file my federal income taxes. It just occurred to me the amount I’ve been using since 2014 as an exclusion, $3,000, may have changed. Do

you know if it has changed?

A The maximum amount of the exclusion for retired Public Safety

Officers has not changed since 2014. We checked the latest edition of Publication 721 for the current tax year 2016, which states, “You can exclude from income the smaller of the amount of the insurance premi-ums or $3,000.”

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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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This plan pays you, or anyone you choose, cash benefits for Hospital stays and home recovery expenses you often need after leaving the Hospital. And, you can use the cash as you see fit. No questions asked.

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To obtain an answer to a federal benefits question, NARFE members should call 703-838-7760 and ask for the Federal Benefits Service Department; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to [email protected].

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RETIREMENT RULES ARE COMPLICATED AND, AS A RESULT, IT IS HARD TO KNOW IF THE INFORMATION WE RELY ON IS ACCURATE. If there is

a proposal from Congress to change your federal retirement benefits, we

may fear that it passed unexpectedly and we tend to believe the rumor

mill. We’ve heard enough stories about retirees who have received inac-

curate information from their personnel office or other resource, and we

have learned to be skeptical. A 2015 Chapman University Survey of Amer-

ican Fears showed that among the top fears of Americans today were

government corruption (58%), running out of money (37.4%) and Ponzi

schemes as well as other financial crimes (19%).

Fortunately, to alleviate these fears, there are federal laws and regula-

tions that are intended to provide guidance so that all federal employees

and retirees receive equal treatment based on a uniform set of rules.

THINGS YOU PROBABLY DIDN’T KNOW ABOUT10

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THINGS YOU PROBABLY DIDN’T KNOW ABOUT

Illustration by Bill Pragluski, Critical Stages, LLC

By Tammy Flanagan

RetirementPlanning

However, the problem is that sometimes you may receive information that was inaccurately inter-preted, or advice based on an old rule that has since been updated or changed. Keeping up with the changes and interpreting the guidance accu-rately can often present challenges when planning your retirement from federal service. When it comes to retirement planning, urban myths and common misinterpretations abound.

MYTHS AND MISCONCEPTIONSHow up-to-date is your knowledge of the federal retirement planning process? Take this quiz and test your knowledge to find out. The following 10 multiple choice questions describe common mis-conceptions. Of course, there is only one correct answer, but many of the possible answers have been circulated as urban myths or are common misinterpretations. Check your answers following the quiz to see how you did!

TAKE THE

RETIREMENT PLANNING

How many partial lump sum cash with-drawals is it possible to take from your

Thrift Savings Plan (TSP)?a. Oneb. Twoc. As many as you needd. Four

Which of the following statements is true regarding the Federal Employ-

ees Health Benefits Program (FEHBP) and Medicare?

a. Once you retire, you are required to enroll in Medicare Parts A and B

b. Medicare by itself is adequate coverage and you may choose to cancel your federal health benefits when you enroll in Medicare A and B

c. When Medicare is your primary payer, many of the FEHBP plans will waive their own deductible, copayments and coinsurance

d. Once you have Medicare, you will have trouble finding doctors and specialists who will accept this coverage and you may be turned away

e. Medicare helps to pay for most nurs-ing home room and board expenses once your income falls below the poverty threshold

Which of the following statements is not an exception to the 10 percent

early withdrawal penalty when making a TSP withdrawal?

a. Separation (resignation or retirement) from federal service in the year you turn age 55 or later, or the year you reach age 50 if you are a public safety employee

b. A series of monthly payments taken over your life expectancy as your payout option

c. Separation prior to age 55 as long as you wait until age 55 to begin payments

d. Payments made as a result of total and per-manent disability

At what age do you stop paying the Social Security (FICA) tax?

a. Age 70b. There is no age limit; as long as you are

working, you continue to pay the tax c. When you begin receiving your Social Secu-

rity retirement benefitd. Age 65, when you qualify for Medicare

All of the following facts about the Civil Service Retirement System (CSRS)

make it more generous than the Federal Employees Retirement System (FERS), except one. Which one?

a. The formula for computing retirement ben-efits for CSRS is more generous than the formula used for FERS

b. CSRS retirees receive immediate and full cost-of-living adjustments

c. Spousal survivor benefits are more flexible, generous and less expensive under CSRS

d. CSRS retirees receive greater replacement of their preretirement income than FERS retirees having the same amount of service and identical salaries

QUIZ

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1

3

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All of the following facts about FERS make it more flexible than CSRS, except

one. Which one?a. Since FERS is a three-tiered system, you don’t

have to apply for all three benefits at the same time b. You may retire with a reduced retirement

benefit at the minimum retirement age with a mini-mum of 10 years of creditable service

c. Since your retirement is not affected by outside earnings, you may receive your retirement benefit and go back to work in private industry at any age

d. The benefits left behind for a survivor of an employee who dies in service are more generous

The service computation date that is published on your Standard Form 50,

“Notification of Personnel Action“ is used only for what purpose:

a. Leave accrual b. Reduction in Force eligibilityc. Disability eligibilityd. Retirement computation and eligibilitye. Vesting for the TSP

Under FERS, retirees receive a temporary benefit if they are under age 62 and are

entitled to an immediate, unreduced retirement benefit. This temporary benefit is called:

a. FERS Annuity Supplementb. FERS bridge paymentc. Social Security Retirement Supplementd. FERS basic annuity

Which one of the following statements is a valid reason to stay in the TSP rather

than move your retirement savings to another retirement account, such as an individual retire-ment account (IRA):

a. More flexibility, broader diversification and personal investment advice

b. Low administrative fees, simplicity and pro-tection from creditors

c. Lower premiums, no copayments and better coordination between the plans

Which of the following retirement ben-efits are not subject to federal income tax

once you are retired:a. Withdrawals from traditional IRAs and tra-

ditional TSP funds that were invested on a pretax basis

b. Social Security retirement benefitsc. Withdrawals from Health Savings Accounts

(HSA) and Health Reimbursement Accounts (HRA) when used to pay eligible medical expenses and cer-tain health care premiums

d. Withdrawals from Roth IRAs and Roth TSP investments that meet certain requirements

e. C, D and sometimes B

QUESTION 1: CORRECT ANSWER: D.You may take four partial lump sum cash withdraw-als from your TSP. Although there is a one-time opportunity to request a partial withdrawal when separated from federal service (form TSP-77) or an age-based in-service withdrawal (form TSP-75), there are actually three additional ways to take out a lump sum of cash from your TSP after you separate from federal service: 1) an outstanding TSP loan bal-ance that can be left unpaid after you separate from federal service, which will be declared a taxable dis-tribution if you fail to repay the loan within 90 days of being notified of the balance; 2) a cash payment that can be elected as one of the options available by using form TSP-70, “Request for Full Withdrawal;” and 3) a final lump sum payment of the account bal-ance can be made by canceling a series of monthly TSP payments.

QUESTION 2: CORRECT ANSWER: C. With regard to FEHBP and Medicare, the decision to enroll in Medicare is yours. Most FEHBP plans pro-vide incentives so that once Medicare is the primary payer, you will pay fewer out-of-pocket expenses. Many plans waive their own deductibles, copays and coinsurance so that you have close to 100 percent coverage for your medical care covered by Medicare and your FEHBP plan. Some plans will reduce the prescription drug copays as well. Although there are

W W W. N A R F E . O R G | 25

ANSWERS

Retirement Planning

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some medical providers that do not take Medicare patients, the majority of primary care physicians (93 percent) say they take Medicare, although the acceptance rate of new Medicare patients is 72 percent, according to a Kaiser Family Foundation (KFF) 2015 National Survey of Primary Care Pro-viders. Less than 1 percent of physicians in clinical practice have chosen to opt out of the Medicare program, of which 42 percent are psychiatrists, ac-cording to a KFF 2016 issue brief. Only 67 percent of physicians accept Medicaid patients; however, Medicaid helps pay for custodial care in a nursing home, according to the KFF 2015 survey. Medic-aid is a joint federal and state program that helps people with low income and assets.

QUESTION 3: CORRECT ANSWER: C. To avoid the 10 percent early withdrawal penalty when making a TSP withdrawal, employees who separate prior to age 55 must wait until age 59 ½ to begin taking TSP payments. Answers A, B and D are all exceptions to the 10 percent early with-drawal penalty. For more information about taxes and tax penalties on TSP withdrawals, review the pamphlet, “Tax Information: Payments From Your TSP Account” at www.tsp.gov.

QUESTION 4: CORRECT ANSWER: B.You will continue to pay Social Security (FICA) taxes on your earnings as long as you continue to work. However, you can receive Social Security retirement benefits and work at the same time if you are over the full retirement age (age 65-67, depending on your year of birth). In this situation, your earnings record will be checked every year to determine whether the additional earnings you had will increase your monthly benefit.

QUESTION 5: CORRECT ANSWER: D.Although CSRS has a more generous basic benefit computation formula than FERS, FERS is a three-tiered retirement system that includes Social Se-curity and the TSP in addition to the government annuity benefit. Depending on many variables that include age at retirement, performance of the TSP, salary rates and others, it is entirely possible for a FERS retiree to have as much income in their re-

tirement years, or more, than a CSRS retiree who had retired at the same age with the same amount of federal service and similar salary history.

QUESTION 6: CORRECT ANSWER: C.There are many things about FERS that make it more flexible than CSRS, except when it comes to additional earnings in retirement. Under FERS, there is an earnings limit for the FERS special retirement supplement and also for Social Security if you are under the full retirement age. If your earnings are above a certain limit, your benefit is offset by $1 for every $2 you earn above the limit. In 2017, the earnings limit is $16,920. For some people, delaying Social Security retirement and withdrawals from the TSP can provide more flex-ible financial and tax planning strategies. Answers A, B and D are all examples of FERS flexibility. To be sure, CSRS provides survivor benefits to the spouse of a deceased federal employee. However, FERS provides a lump sum death-in-service ben-efit to a surviving spouse in addition to a survivor annuity (if the employee had at least 10 years of service) along with the lump sum balance in the TSP account and widow’s benefits potentially payable from Social Security. The TSP gives flex-ibility and control over who will receive the money in your TSP account in the event of your death through the “Designation of Beneficiary” form (TSP-3) and Social Security may provide more generous benefits to your surviving dependent children.

QUESTION 7: CORRECT ANSWER: A.The service computation date (SCD) that is published on your Standard Form 50, “Notifica-tion of Personnel Action” is used only for leave accrual. The various service computation dates (SCDs) determine an employee’s eligibility for a specific benefit or entitlement. There are four types of SCDs: leave, retirement, TSP and reduc-tion in force. The “leave” SCD on your SF-50 is used to determine the date to move from four to six to eight hours of annual leave accrual. Your “retirement” SCD is determined at the time you request a retirement estimate or when you submit your retirement application. Be aware that there

Retirement PlanningTHINGS YOU PROBABLY DIDN’T KNOW ABOUT10

26 | M AY 2 0 17 26 | M AY 2 0 17

is some service that can be used for leave credit which is not creditable toward retirement eligibility or computation.

QUESTION 8: CORRECT ANSWER: A.The FERS Annuity Supplement is the bridge pay-ment that is paid to a FERS retiree under age 62 who is entitled to an immediate, unreduced retire-ment benefit. It is paid by the Office of Personnel Management to retirees who meet certain eligibility requirements and is subject to an earnings limit similar to the Social Security earnings test.

QUESTION 9: CORRECT ANSWER: B.A valid reason to stay in the TSP is to benefit from the low administrative fees, simplicity and protec-tion from creditors. What could be easier than leaving your money right where it is to enjoy low administrative expenses of 38 cents for each $1,000 invested per year? Your TSP account cannot be made part of a bankruptcy estate, so it is protected from claims by creditors.

QUESTION 10: CORRECT ANSWER: E.Both C and D are correct answers. Retirement ben-efits that are not subject to federal income tax in re-tirement include funds in Health Savings Accounts, Roth IRAs and the Roth TSP. These all are places where money can grow tax free and withdrawals will not increase your taxable income. Some people

receive Social Security benefits tax free, but if you have a government pension, investment income and other forms of retirement income, you will be taxed on 50 percent or 85 percent of your Social Security retirement income, depending on the amount of tax-able income reported on your tax return.

GO STRAIGHT TO THE SOURCEWhile you are employed, your agency is your primary point of contact for your federal benefits. After you separate from federal service, you will need to directly contact the agencies that admin-ister those federal benefits. All of these agencies maintain valuable, accurate and up-to-date infor-mation available at the click of your computer mouse. As websites become more sophisticated, this information is becoming easier to access. Take charge of your benefits so that you can determine whether you are following good advice or just another report from the federal retirement grape-vine. Of course, for those congressional proposals, the NARFE Legislative Department is your go-to source for the news and accurate updates. –TAMMY FLANAGAN IS NARFE FEDERAL BENEFITS INSTITUTE WEBINAR PRESENTER; MANAGER OF TAMMY FLANAGAN, LLC, AND SENIOR BENEFITS DIRECTOR AT THE NATIONAL INSTITUTE OF TRANSITION PLANNING, INC. SHE CONDUCTS RETIREMENT TRAINING AT FEDERAL AGENCIES, WRITES A WEEKLY COLUMN CALLED “RETIREMENT PLANNING” FOR WWW.GOVEXEC.COM AND IS A FREQUENT GUEST ON FEDERAL NEWS RADIO.

AGENCY OR COMPANY ADMINISTERS THE FOLLOWING BENEFITS WEBSITE

U. S. Office of Personnel Management

• FERS (Federal Employees Retirement System) • CSRS (Civil Service Retirement System)• FEHBP (Federal Employees Health Benefits Program)• FEGLI (Federal Employees’ Group Life Insurance Program)• FEDVIP, FLTCIP and FSAFEDS (see below for additional

resources)

www.opm.gov

WageWorks, Inc. FSA (Flexible Spending Account) employee-only benefit www.fsafeds.com

BENEFEDS • Federal Employees Dental and Vision Insurance Program (FEDVIP)

• FEDVIP enrollment and premium payment • Administering the premium payment process for the

Federal Long Term Care Insurance Program (FLTCIP)• Collect allotments for Flexible Spending Accounts for

Federal Employees (FSAFEDS)

www.benefeds.com

Long Term Care Partners, LLC FLTCIP www.ltcfeds.com

Social Security Administration Social Security retirement, survivors and disability benefit www.ssa.gov

Medicare Sign-up, cost, coverage, supplements and other coverage, claims and appeals and more

www.medicare.gov

Thrift Savings Plan Federal Retirement Thrift Investment Board www.tsp.gov

Retirement PlanningAgencies That Administer Federal Benefits

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PHOTO ABOVE: From left, congressional staffers Julia Angelotti, Alex Robbins, Aaron Wasserman, Ashley Poling and Greg Stanford, Federal Managers Association government affairs director.

Sen. Heidi Heitkamp

By Gary Gately

Photos by Mike Theiler

2017NARFE LEGISLATIVE TRAINING

CONFERENCE

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T he political environment for federal employees and retirees has never been more precarious, with unprecedented threats to their pay, ben-efits and retirement.

Lawmakers and conference presenters drove that message home – with a clarion call to action to fight cutbacks through grassroots activism – at the NARFE Legislative Training Conference March 12-15 in Alexandria, VA. The conference drew more than 300 participants, 170 of whom attended for the first time, representing 47 states, the District of Columbia and Puerto Rico.

“While we have faced challenges in the past, the stars have never quite lined up in the way they do this year with a new president and a new Con-gress,” said NARFE National President Richard Thissen. “Those stars are now aligned to make drastic cuts to the pay and benefits you have rightfully earned. Our success during this congressional session will depend on how much you get involved.”

The biennial NARFE conference featured advice on battling proposals that would harm federal employees and retirees. Speakers included six members of Congress (both Republicans and Democrats), key congressional aides, grassroots and budget experts and leaders from NARFE and the Federal Managers Association. Participants learned about the new NARFE Legislative Action Center and gained an overview of NARFE-PAC, which they supported with an infusion of $4,414 in one-time contributions. A total of 24 people joined the Sustainer program, giving $322 per month, or $7,728 over a two-year period.

NARFE has been lobbying against increases to current federal employ-ees’ retirement contributions, higher premiums for the Federal Employees Health Benefits Program (FEHBP), devastating changes to the formula for the Thrift Savings Plan G Fund, and possible elimination of the Federal Employees Retirement System (FERS) for new hires. Sen. Heidi Heitkamp

PHOTOS BELOW, CLOCKWISE: Cliff Johnson of the National Journal of-fers advocacy tips; Rep. Rob Wittman and Jim Little, a local constitutent; the Region III delegation meets at the conference.

Photos by Mike Theiler

NARFE LEGISLATIVE TRAINING

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2017NARFE LEGISLATIVE TRAINING CONFERENCE

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Calling it a dangerous precedent for all federal retirees, NARFE also opposes forcing postal retirees to enroll in Medicare or lose retirement benefits through the FEHBP. The Postal Reform Act, H.R. 756, approved by the House Committee on Oversight and Govern-ment Reform, would force 76,000 postal retirees to enroll in Medicare, at a cost of $1,600 apiece per year, or more, Thissen said.

PREPARATION PAYS OFFAs NARFE members prepared for Capitol Hill meetings with lawmakers and their staff, they got advice on making the most of their visits from advocates experienced in lobbying for the federal community. At a breakout session, “Tailoring Your Message,” Jessica Klement, NARFE’s legislative director, urged participants to heed the Boy Scout motto: “Be prepared.”

Whether meeting with the member of Congress or staff, Klement said, it’s imperative to be well-informed about the member’s background, committee assignments, stances on key NARFE issues, and NARFE voting record.

“You try and find the thing that’s going to make them remember you,” she said. “Use what you know to try and tie it to what you’re passionate about to make that connection, because at the end of the day, it’s all about relationships.”

Like others at the NARFE conference, Klement said she had expected Democrats to carry the Senate in November. Now, she said, “Congress is more polarized than ever. But it is reflecting a more polarized electorate. We as a country are very, very polarized.”

And that does not bode well for federal employees and retirees. Many conservative Re-publicans in Congress, focused on deficit reduction, “tend to agree that federal employees are targets, and easy targets,” Klement said, “so it’s your job to take the message to the Hill to make sure that you don’t make yourself into a target.”

THE POWER OF YOUR VOICERep. Anthony Brown, D-MD, told conference participants: “Americans deserve the best, most efficient and most responsive government we can possibly deliver, and we can’t de-liver that if we make it hard to recruit and retain the most talented, the brightest and the hardest-working at the start.”

Brown, who had served as lieutenant governor to former Maryland Gov. Martin O’Malley, said the clamor to reduce the size of the federal government jeopardizes critical

“Since we are in trying times, I think this conference is one of the best in terms of presenting information. It’s prepared us to talk to Congress. I’m extremely concerned about benefits, especially health care. They’re going to tweak health care, with federal employees getting less. I’ve got more information and facts for advocacy.”

—Steven Groom

LEFT PHOTO: From left, Bruce Coleman and Dorman Otte, federation state leg-islative officer, meet with Kyle Thompson, legislative assistant for Rep. Rod Blum of Iowa. RIGHT PHOTO: Counterclockwise from right, Margaret and Kenn Barr and Keri Gibbs, president of the Idaho Fed-eration, meet with Rebecca Alcorn, leg-islative correspondent to Sen. Michael Crapo of Idaho.

W W W. N A R F E . O R G | 33

functions like disease research, environmental protection and food inspections while making it more difficult for the federal government to recruit and retain top talent.

He pointed out that 85 percent of federal employees live outside the Beltway and called on conference participants to advocate for NARFE’s legislative agenda.

“One of the tools we have both in Congress and in communities throughout this coun-try is the power of our voice, the voice of our resistance, the voice of persuasion, the voice letting Americans know that the agenda we see in front of us is a very dangerous agenda that will ultimately destroy or downsize programs we deliver to a deserving American population. We have our work cut out for us.”

Sen. Heidi Heitkamp, D-ND, also called on participants to dispel the myth that the federal workforce is a bloated, inefficient bureaucracy. “The political narrative sometimes sees us as an opportune whipping person, as a federal employee,” Heitkamp said. “I don’t subscribe to that theory that the federal employees are the brunt of the problem and that we should make a federal employee an employee of last resort.”

Like Brown, Heitkamp also suggested the damaging stereotype hurts federal recruit-ment efforts for critical positions from marine biologists to rural postal workers.

“All those tools we used in the past to recruit, the tool box is getting smaller and smaller,” she said. In addition, recruiting millennials will prove more challenging, Heit-kamp suggested. “Millennials think differently – of having a unified cause and mission,” she said.

Rep. Barbara Comstock, R-VA, who has opposed cuts to federal benefits and supported paid family leave for federal employees, pointed to the crucial role of federal employees’ medical, space and science research.

“We can’t balance the budget on the backs of federal employees,” Comstock said.On a hopeful note, she said she anticipates significant resistance to some of Trump’s

budget proposals. “We know that in several past administrations’ budgets, often the federal employees have been a target,” Comstock said. “But usually the president’s budget is dead on arrival no matter what because of congressional oversight and how people want the money spent.”

A TIME OF UNCERTAINTYOne key strategy that congressional leaders may use to advance their fiscal policy agenda this year is budget reconciliation, noted David Reich, a senior fellow at the Center on Budget and Policy Priorities, where he focuses on issues related to the federal appropria-tions process.

Created by the Congressional Budget Act of 1974, reconciliation is a fast-track process that can be used to enact considerable budget changes (for details, see story on p. 6). This

LEFT TO RIGHT: Robert Allen, NC federation presi-dent; Rep. Virginia Foxx; and David Moulton.

Charles Talley meets with Margaret Franklin, senior legislative assistant to Rep. Alma Adams of NC.

Richard Thissen greets Rep. Barbara Com-stock

Rep. Don Beyer

Richard Thissen introduces Rep. Jamie Raskin

2017NARFE LEGISLATIVE TRAINING CONFERENCE

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year, reconciliation likely will be used as a deficit reduction measure by cutting pro-grams, such as pensions for federal employees and retirees.

“I don’t think that there has ever been a year with more uncertainty and such a range of uncertainty about possible outcomes,” said Reich, who has been watching the budget process over a 30-year period.

Trump’s budget blueprint calls for an increase in defense spending ($54 billion) with cuts to most federal agencies, including a 29 percent cut to the State Department. Calling the appropriations process “antiquated,” Rep. Rob Wittman, R-VA, said that he wants to ensure that in the budget process, congressional representatives are aware of the “significance of the federal workforce so that we understand their contributions.”

Wittman wants to make sure that the federal workforce is strong across all levels of experience. Noting that 30 percent of the federal workforce will retire in five years, he is concerned about the precarious knowledge base in the federal workforce.

Federal employees have been under siege since the second day of Congress, when the administration passed the Holman Rule, which allows the government to single out federal employees, noted Rep. Don Beyer, D-VA, who is serving a second term representing Virginia’s 8th Congressional District, home to 76,000 federal employees. “This is a terrible rule. It doesn’t save the taxpayers money or reduce the deficit,” Beyer said. “People are blaming federal employees for every ill in America.”

Yet, in recent years, federal employees have experienced steady erosion to their pay and benefits, Beyer noted. They have experienced a loss of pay due to cuts in retirement benefits, and for retirees there has been little or no cost-of-living adjust-ment (COLA) for the past three years. For 2017, the COLA has been a mere 0.3 percent. “This amounts to an increase of $3.60 — that’s not even a cup of coffee,” he said.

Beyer also noted that beneficiaries likely will see an increase in Medicare Part B premiums as well as in Federal Long Term Care Insurance Program premiums.

“You are doing more with less. It’s up to me and other representatives to stand up for you,” Beyer said. “I will do all I can to be a champion for federal employees.”

The conference culminated in attendees walking the halls of Congress and meet-ing with their elected representatives. At the conclusion of the day, NARFE members gathered, alongside Hill staffers and legislators, for a reception to cap off their success-ful day of advocacy.

Rep. Derek Kilmer, D-WA, joined the reception and cheerfully expressed his sup-port of federal workers and retirees. Kilmer pointed out that “federal workers and retirees have contributed more to deficit reduction than any other group.”

Two strong supporters of NARFE, Sen. Mark Warner, D-VA, and Rep. Gerald E. Connolly, D-VA, also stopped by the reception. Warner did not shy away from the fights that NARFE will face, but wholeheartedly said, “You’ve always had my back. I’ll always have your back on pay, retirement and making sure that the bargain that was cut is honored.” –GARY GATELY IS AN AWARD-WINNING FREELANCE WRITER BASED IN BALTIMORE WHO COVERS THE U.S. SUPREME COURT FOR TALK MEDIA NEWS. SUSAN BOSWELL, NARFE MAGAZINE EDITOR, CONTRIBUTED TO THIS ARTICLE.

LEFT TO RIGHT: Joyce Warner, FEEA executive director, Richard Thissen, Rep. Anthony Brown, and Renee Johnson, FMA national president.

Conference participants give a round of applause.

NARFE RESOURCES

Go to www.narfe.org, click on Legislation and then select Legislative Training Conference on the left to access PowerPoint presenta-tion from conference sessions.

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Each day seems to bring with it news of yet another protest in America,

with people taking to the streets both in support of and in opposition to

new policy proposals. Some choose to make their voices heard through

marches and rallies. Others prefer to use digital and social media to

share information with their networks. As some have observed, “This is what

democracy looks like.”

When it comes to effecting true change, the vast majority of Americans are doing it wrong. Advancing a specific policy position is hard work. It requires far more than shouting into the digital echo chamber or chanting slogans. These activi-ties might soothe the soul but they don’t do any-thing to advance a piece of legislation on Capitol Hill. Depending on your position, these tactics might make things even worse.

So what works? What can you do to advance a policy conversation or secure support from your lawmakers on a piece of legislation?

We get this question frequently at the National Journal Leadership Council (www.nationaljournal.com). Our research team spent countless hours looking into what best-in-class advocates do to have an impact on public policy, building out the anatomy of a “super advocate.” What we can tell you is that super advocates do three things: they show up, they are visible and they are prepared.

THEY SHOW UPThere are dozens of adages about the importance of participating, or “showing up.” After all, you can’t win the game if you don’t show up to play. This is absolutely true when it comes to advo-cacy and is perhaps best summed up in a quote often – and erroneously – attributed to Thomas

Jefferson: “We in America do not have govern-ment by the majority. We have government by the majority who participate.”

While our elected representatives may have opinions on how to run the government and what policies to support, those opinions are formed by listening to the people in their districts. Those lawmakers who neglect to take the time to listen to the electorate often have very short and unpleasant terms in office.

That’s important to keep in mind. Law-makers don’t wake up in the morning and ask themselves, “What can I do for the good of the American people?” Instead, they ask themselves, “What do the people in my district want me to do on this issue?”

High-impact advocates know this and so they show up – early and often. Your lawmakers won’t know how you want them to act on an issue unless you tell them. In fact, a 2013 report by the Congressional Management Foundation (CMF) found that lawmakers ranked “staying in touch with constituents” as the job aspect most critical to their effectiveness.

So how do super advocates communicate with lawmakers? Once again, they show up – in person. Super advocates know that in-person visits with lawmakers or staff are the most effec-tive way to influence their thinking on an issue,

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with individualized emails and letters following not far behind. A 2010 CMF survey of congres-sional staff, among other surveys, consistently backs this up.

Of course, in-person visits don’t have to take place in Washington, DC. The best place to visit your lawmaker is in their district or state. Every lawmaker has a calendar of public events, includ-ing town halls, constituent meetings, office hours and so on. Sign up for your lawmaker’s email newsletter or visit their website to find these events.

If you are unable to attend an event, then sending an individualized letter or email is also effective to let your lawmaker know a constituent in the district cares about an issue.

Above all, be an active and engaged partici-pant. That’s how super advocates show up.

THEY ARE VISIBLEWhen super advocates do show up, they make sure they’re visible. That doesn’t mean wear-ing bright clothing or carrying signs. It means getting noticed in a manner that allows them to begin building a relationship with the lawmaker and staff. Building that relationship means find-ing a way to make contact with the lawmaker’s office on a quarterly basis, if not more frequently.

Super advocates do this by asking questions at town hall meetings, making appointments to speak with staff in the district office and attend-ing other constituent events such as community meetings, task force meetings and other pub-lic events. Super advocates find ways to make themselves heard in public forums. They politely introduce themselves to congressional staffers, and some even buttonhole reporters in atten-dance to make their case.

More ambitious super advocates will work to organize others who also will speak out on issues. In some cases, this is nothing more than inviting a friend or colleague along to a town hall meeting. In other cases, it means taking on a leadership role and organizing a large group of friends and colleagues to attend a town hall or even creating an event (e.g., a chapter meeting of a club or membership organization) where the lawmaker could serve as a speaker.

The key to becoming visible is repetition.

Super advocates plan out a series of interactions with the lawmaker’s office across the year in a way that allows them to build credibility as a trusted constituent voice on the issue.

THEY ARE PREPAREDIn addition to showing up and being visible, super advocates are prepared. They’ve thought through what they’re going to say when they step up to the microphone or into the district office. They know the lawmaker’s history on the issue at hand and how it affects the district or state. They’ve thought about how they’re going to enter the conversation. For a conservative lawmaker, advocates should frame the argument or “the ask” in economic terms. For a liberal lawmaker, advocates should enter the conversation from a more social or community-oriented position.

Beyond having a specific argument or an “ask,” super advocates support their position with a brief but well-told story. And by brief, this means the length of an “elevator pitch.” It’s not easy and it takes practice, but research shows that a well-told story makes an argument more powerful and more memorable. After the meet-ing is over, the lawmaker may forget the specific data points you mentioned … but they’ll remem-ber your story.

Super advocates know this and so they work to hone and rehearse their stories. The stories don’t have to be perfect, but they do need to stay on message and they should be structured in a way that allows the lawmaker to be the hero. Super advocates also know that a well-crafted story becomes a tool for the lawmaker to use in justifying a vote to the local newspaper, at a town hall meeting or while speaking out on a piece of legislation.

Above all, the story powerfully and memo-rably communicates that a constituent in the district cares deeply about an issue.

That’s ultimately what super advocates do. They communicate with the lawmaker’s office to remind them their constituents want a specific action on an important issue. They do this by showing up, being visible and being prepared.—J. CLIFF JOHNSON, III IS A PRACTICE LEADER WITH NATIONAL JOURNAL LEADERSHIP COUNCIL AND WAS A PRESENTER AT THE 2017 NARFE LEGISLATIVE TRAINING CONFERENCE.

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For example, consider a cou-ple who plans on using their TSP accounts to buy a vacation home when they retire. The budget for the home is $200,000, and their strategy is to take a one-time, partial withdrawal from the TSP. Not including TSP withdraw-als, we’ll assume their taxable income after retirement will be $100,000, which puts them in the 25 percent tax bracket.

If the couple could distrib-ute the money from the TSP and remain in the 25 percent tax bracket, they would need to withdraw $266,667 to net $200,000 after taxes. However, given our progressive tax sys-tem, the additional income from the TSP withdrawal will push them into a higher tax bracket, resulting in more taxes.

To understand the conse-quences of taking large with-drawals from the TSP, we need to know the tax brackets and understand how they apply to taxable income. In the table (right) are the tax brackets for a

married couple filing jointly.If the couple takes a $266,667

withdrawal, their taxable income will increase to at least $366,667, putting them in the 33 percent tax bracket. To be clear, they won’t owe 33 percent on the entire distribution. The first $53,100 will be taxed at 25%, the next $80,250 ($233,350 - $153,100) will be taxed at 28 percent and the remaining will be taxed at 33 percent. That’s the progressive nature of our tax system.

Instead of distributing $266,667, this couple will need to distribute a little over $286,000 to net $200,000 after

taxes. In other words, the higher tax rates applied to the TSP distribution will result in about $20,000 more in tax.

This doesn’t even take into consideration what I refer to as stealth taxes – expenses and taxes you’ll incur as taxable in-come increases. For example, the extra income will trigger higher Medicare Part B premiums. In addition, personal exemptions and itemized deductions begin to be phased out when gross income exceeds $313,800.

With a little flexibility and planning, it may be possible to avoid, or limit altogether, the negative consequences of using your TSP for big ticket items. In this couple’s case, they may realize another $53,100 in tax-able income before jumping to a higher tax bracket. With this in mind, one strategy would be to limit their withdrawals to about $53,000 per year until they have pulled out enough money to net them $200,000 after taxes. Assuming a 25 percent tax rate, this would take them approximately 5 years ($266,667 / $53,000).

They’ll have to work with the TSP’s withdrawal rules, which means they’ll have to take monthly withdrawals equal to $53,000 annually. Alterna-tively, they could opt to take a partial withdrawal, transfer it to an individual retirement account (IRA), and then take

Ma

nagi

ng M

oney

BY MARK A. KEEN

CFP®

PLAN AHEAD FOR LARGE TSP DEDUCTIONS

T he United States has a progressive tax system, which means the percentage of income an individual pays in taxes increases as taxable

income increases. Although tax-deferred retirement plans, such as the Thrift Savings Plan (TSP), offer tremendous tax benefits to participants, without planning, the progressive tax system may work against retirees who would like to take large distributions from their TSP.

Tax Bracket Tax Rate$0.00 + 10%$18,650 + 15%$75,900 + 25%$153,100 + 28%$233,350 + 33%$416,700 + 35%$470,700 + 39.6%

2017 Tax Brackets: Married Filing Jointly

40 | M AY 2 0 17

out $53,000 annually from the IRA. The downside to either strategy is that they must wait until they retire to start the withdrawals, which means they’ll have to wait five years after retirement before they will have enough funds pulled out of their TSPs to buy the home.

For those retiring after age 59 ½, another option is to take an in-service withdrawal, transfer it to an IRA, and then distribute the money from the IRA in the necessary

installments. This strategy may shorten the wait time after retirement before realizing your goal.

Where you park the distributions until the money is used depends on your circumstances. In some cases, rath-er than placing the cash in a taxable account, it may make sense to convert the distributions to a Roth IRA, and then subsequently distribute the money from the Roth IRA.

You’ll also want to take into consideration state taxes, which haven’t been mentioned here due to the diverse rules from state to state.

Tax-deferred retirement plans, including the TSP, offer tremendous tax benefits, but you’ll still need to plan ahead to maximize their potential.

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: [email protected].

BENEFITS RESOURCESNARFE offers members a wide range of information on federal benefits. Visit www.narfe.org/federalbenefits and www.narfe.org/FederalBenefitsInstitute.

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

CONTACT INFORMATIONo Mr. o Mrs. o Miss o Ms.Full Name _____________________________________________

Street Address _________________________________________

Apt./Unit ______________________________________________

City _______________________ State _____ ZIP _____________

Phone (__________) ____________________________________

Email ________________________________________________

Date of Birth _____ /_____ /_________ dd mm yyyy Recruiter ID # (if applicable) _______________________________Chapter Number (if applicable) ____________________________(call 800-456-8410 for chapter information)

MEMBERSHIP INFORMATIONMember 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.

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

o Active Federal Employee Spouse

o Annuitant

o Annuitant Spouse

o Survivor Annuitant

Life Membership Fee ScheduleAges Single or Quarterly Payment Installments30-39 $1,796 $450.2540-50 1,408 353.2551-55 1,127 283.0056-60 960 241.2561-65 801 201.5066-70 653 164.5071-75 514 129.7576-80 392 99.2581-90 251 64.0091-100+ 127 33.00

PAYMENT INFORMATIONo Single Payment or o Quarterly Installments (4 payments)

Life Membership fee amount: $ _____________________

PAYMENT OPTIONSo Check or Money Order (Payable to NARFE)o Charge my: o MasterCard o VISA o Discover o 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

W W W. N A R F E . O R G | 41

The

Info

rmed

Cit

izen

NARFE members in Iowa, led by Dorman Otte, Federa-tion State Legislative Officer, are using the NARFE Legisla-tive Action Center to advo-cate for state legislation that would gradually increase the state income tax exemption for eligible seniors. Otte first appealed to federation and chapter leaders to get his pre-pared letter sent to legislators. Next, Otte engaged chapter and national members to use the Action Center to send his message to legislators, which could be edited and personal-ized. Instead of his guessti-mate of the “20 letters at best” from the initial process, 159 members generated 171 mes-sages to senators in support of state Sen. Brad Zaun’s bills, SF 34 and SF 36. The Action Center website portal was able to provide exact data about how many messages each state senator received.

Simultaneously with the letter and message campaign, Otte led a small but commit-ted group of NARFE members to a “NARFE on the Hill” event at the statehouse in Des

Moines. Otte and Iowa Federa-tion President Bruce Coleman shared their experiences at the statehouse event with fellow NARFE members from across the country at the Legislative Training Conference’s session on state advocacy (more about the conference on pages 30-34).

Legislative Action CenterThe new NARFE Legislative Action Center provides an easy way to send letters to your elected officials in Congress, your governor and your state legislators. From the NARFE homepage (www.narfe.org)

select “Legislation” and then ”Take Action.” You can “Find Officials” by inserting a ZIP code and then a street address. Each of the federal and state official’s names are links to detailed information. Several additional federations are also considering state-specific cam-paigns through the new Action Center.

Meeting Politicians EarlyIn addition to potential tax savings, state advocacy has two other upsides: 1) meeting (and influencing) ambitious elected officials before they get to Congress and 2) establishing or improving our “brand” by participating in the shaping of subnational public policy. The Maryland and Virginia Federa-tions are active members in advocacy coalitions, Seniors of Maryland and Transparency Virginia, respectively.Half the current members of Congress served in their state legislature or as governor, or both. Vic Peterson, Arizona Federation state legislative officer, knows this very well. Six of Arizona’s nine-member delegation in the U.S. House of Representatives had previous service in the state legislature. Both of the newest House mem-bers from Arizona, including Democrat Tom O’Halleran, who is pictured above, came directly from the legislature.

STATE ADVOCACY’S UPSIDE

Got taxes? In the “Got Milk” commercial, you chuckle at the milk mustache. The telltale sign of “Got taxes” is steam coming out the ears. If you’ve filed your federal and state

income taxes and feel your ears burning, you may want to be cogni-zant of the 1890 populist advice to raise less corn and more hell.

BY CHRISTOPHER FARRELL SENIOR ANALYST

At left, Arizona State Legislative Chair Vic Peterson and Rep. Tom O’Halleran

42 | M AY 2 0 17

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

THRIFT SAVINGS PLAN FUND RETURNS

G FUND F FUND C FUND S FUND I FUND

MARCH 0.20% -0.01% 0.12% -0.08% 2.85%

FEBRUARY 0.18% 0.71% 3.97% 2.45% 1.44%

JANUARY 0.20% 0.23% 1.90% 2.16% 2.89%

YTD 0.59% 0.93% 6.07% 4.57% 7.35%

1 YEAR 1.92% 0.71% 17.20% 22.53% 12.12%

3 YEAR* 2.06% 3.11% 10.44% 7.42% 0.84%

5 YEAR* 1.95% 2.72% 13.36% 12.78% 6.18%

10 YEAR* 2.57% 4.53% 7.57% 8.19% 1.34%

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

COUNTDOWN TO COLA

The Consumer Price Index for Urban Wage Earn-ers and Clerical Workers (CPI-W) increased 0.26 percent in February 2017. To calculate

the 2018 cost-of-living adjustment (COLA), the indices of July, August and September 2017 will be averaged and compared with the 2016 third-quarter average of 235.057. The percentage increase, if any, determines the COLA. February’s index, 237.477, is up 1.03 percent from the base.

Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted accord-ing to each calendar year’s percentage change in the CPI-W. February’s index is 0.89 percent higher than the December 2016 base index of 235.390.

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.

Market expectations for economic growth be-came less certain in March. As a consequence, the C Fund managed only a very small gain while the S Fund generated slightly negative returns. International stocks fared better with the I Fund showing sizable gains helped by the weakness of the U.S. dollar. Meanwhile, the Federal Reserve raised rates by a quarter percent as expected, leaving the F Fund almost unchanged. All of the L Funds gained for the month.—BY SEAN MCCAFFREY, DEPUTY CHIEF INVESTMENT OFFICER, THRIFT SAVINGS PLAN

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

UNCERTAIN MARKETS BRING MIXED RETURNS FOR TSP IN MARCH

*ANNUALIZED

MONTH CPI-W Monthly % Change

% Change from

235.057

OCTOBER 2016 235.732 +0.10 +0.29

NOVEMBER 235.215 -0.20 +0.06

DECEMBER 235.390 +0.07 +0.14

JANUARY 2017 236.854 +0.62 +0.76

FEBRUARY 237.477 +0.26 +1.03

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

44 | M AY 2 0 17

L INCOME L 2020 L 2030 L 2040 L 2050

MARCH 0.33% 0.48% 0.64% 0.71% 0.78%

FEBRUARY 0.77% 1.36% 1.96% 2.25% 2.51%

JANUARY 0.61% 1.04% 1.48% 1.70% 1.91%

YTD 1.73% 2.91% 4.13% 4.73% 5.28%

1 YEAR 4.72% 8.03% 11.06% 12.67% 14.21%

3 YEAR* 3.34% 4.50% 5.49% 5.97% 6.32%

5 YEAR* 3.97% 6.73% 8.22% 9.16% 9.97%

10 YEAR* 3.77% 4.72% 5.35% 5.63% N/A*ANNUALIZED

FEBRUARY 11,293 22,692 80% 96MARCH 5,741 19,211 82% 118APRIL 7,241 14,517 80% 92MAY 7,210 14,035 80% 103JUNE 5,929 13,529 79% 115JULY 9,238 15,562 79% 110AUGUST 6,818 16,334 78% 112SEPTEMBER 6,946 15,146 77% 100OCTOBER 7,326 16,677 58% 91NOVEMBER 5,065 16,019 60% 94DECEMBER 5,483 15,097 56% 95JANUARY 15,317 23,087 51% 89FEBRUARY 9,114 23,916 56% 104

OPM RETIREMENT CLAIMS PROCESSING STATUS

Inventory Avg # of Days Claims (Steady State % Processed in to Process Case in Received is 13,000) 60 Days or Less (FYTD) More Than 60 Days

2016

’1720

1720

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Signature Date / /

Support Alzheimer’s Research

Join the Silver CIrcle

Give to the Scholarship and Disaster Funds

Donate to NARFE Programs

NARFE MEMBERS CONTRIBUTED FOR ALZHEIMER’S RESEARCH: $13 Million Fund

$12,198,596**Total as of February 28, 2017

100% of all contributed funds go to Alzheimer’s research.

If you have any questions, write to:

NATIONAL COMMITTEE CHAIRMerv Stuckey, 2272 E. Buster Mountain Dr.

Oro Valley, AZ 85755-4709

EMAIL: [email protected]

MAKE CHECK PAYABLE TO:NARFE-FEEA Disaster Fund or

NARFE-FEEA Scholarship Fund.

PLEASE MAIL COUPON AND CHECK TO:FEEA

1641 Prince St.Alexandria, VA 22314

CLIP THIS CONTRIBUTION FORM AND MAIL TO:

NARFE Silver Circle, 606 N. Washington St. Alexandria, VA 22314

Enclosed is my NARFE-Alzheimer’s contribution: $Every cent that is contributed is used for research.Please circle: Mr. Mrs. Miss Ms.Name:Address:City: State: ZIP: Chapter Number:

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

Name:Address:City: State: ZIP:

Silver Circle contributions are NOT deductible for federal income tax purposes.

INSTALLMENT PLANWall of Fame 12-month installment plan

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

YES!

NARFE-FEEA Disaster Fund Amount: $

NARFE-FEEA Scholarship Fund Amount: $

I would like to help with my contribution.

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

My check is enclosed (Please make check payable to NARFE Silver Circle.)

Please charge my credit card

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

NARFE-Alzheimer’s Research

AND MAIL TO:Alzheimer’s Association

225 N. Michigan Ave., 17th FloorChicago, IL 60601-7633

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

Signature Date / /

Credit Card Information: MasterCard VISA Discover AMEXCard Number:Expiration Date: (mm)/ (yy) 3-Digit Security Code:Name: (please print)

Card type MasterCard VISA Discover AMEXCard Number:Expiration Date: (mm)/ (yy) Name: (please print)

•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.

46 | M AY 2 0 17

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N ARFE recently has taken great strides in evolving into an association that is more

relevant and responsive to both cur-rent and prospective members.

At the 2016 Biennial NARFE National Convention, delegates recognized the recruitment and retention obstacle posed by a man-datory chapter membership model, and voted to make membership in a local chapter optional. At the same convention, delegates voted to adopt a One Member, One Vote policy, allowing each member a say in the association’s governance and freeing NARFE from an expensive, labor-intensive election process.

NARFE developed and expanded the NARFE Federal Benefits Insti-tute, offering webinars to address critical and complex benefit issues. The association addressed the need for benefits information, recogniz-ing that years of budget cuts had left federal employees with limited access to human resources staff and that federal retirees faced unac-ceptable wait times when phoning or emailing the Office of Personnel Management (OPM).

The NARFE database has been successfully migrated in-house and converted to a fully supported, far more flexible platform. This is a substantial upgrade from a data-base hosted by an outside vendor with an unstable platform. The mi-gration enhances our membership marketing through sophisticated tracking and data analysis.

It also allows for critical, continu-ous database updates and positions the association to transition the da-tabase architecture to meet modern standards.

NARFE is poised to hire a profes-sional Executive Director. Realizing that the term limits imposed on an elected president led to a cycle of steep learning curves, new agendas and general instability, the National Executive Board voted to add the Executive Director position. The NARFE President, as a distin-guished member of our community, will now extend his or her role as the “face” of NARFE, focusing on representing the federal community on Capitol Hill and with the asso-ciation’s important coalition part-ners. The Executive Director, with successful experience in business management in the nonprofit field, will lead the headquarters staff.

As the next strategic planning cycle begins, NARFE faces a num-ber of challenges in the external environment, which include the following issues:

Unprecedented legislative threats have the potential for catastrophic outcomes for active and retired federal employees. While NARFE successfully fought off $318 billion in cuts to federal pay and benefits introduced in the 2016 House budget as well as $170 billion in cuts proposed by the Senate, these proposals will serve as blueprints for the new adminis-tration and Congress. Legislative

threats to active and retired federal employees have greatly intensified. Our government is emboldened by an electorate that wants drastic action on cost savings and federal debt reduction as well as a speaker who has shown intent to reduce the federal deficit and national debt.

Membership growth chal-lenges remain, although recruit-ment and retention strategies have decreased the pace of membership decline. NARFE’s 2016 year-end total membership was 215,760, down 9,798, or 4 percent, from the close of 2015. These numbers reflect continued improvement over the past few years in reducing the degree of net loss of members and attrition rate. Despite progress, significant challenges remain.

The strategic planning team and committee, chaired by NARFE National Secretary/Treasurer Jon Dowie, met for two days in March to continue the important work that will lead to a more secure future for NARFE.

DID YOU KNOW THAT...

NARFE’s popular webinars are available online within 48 hours of the original broadcast? Access the recorded versions at www.narfe.org/member/Federal BenefitsInstitute (login required). You also can download a tran-script of the Q&A sessions and view the slides from the pro-grams. NARFE’s Federal Benefits Institute helps you take charge of your benefits!

S E C U R E T H E F U T U R E

CORRECTION: In the state tax roundup on p. 40 of the April issue, information for North Carolina was incorrect. Deductions for certain taxpayers of up to $4,000 for federal, state or local government retirement benefits or up to $2,000 for private retirement benefits are no longer available as of 2014. NARFE regrets the error.

NARFE MAKES STRIDES TO FUTURE

BETTER HEARING BEGINS HERE.

The first hearing deviceproven to make it easier on the brain.

Your Hearing Network gives you easy access to a network of carefully screened hearing care professionals and a wide selection of digital hearing aids.

* Disclaimer: Your out-of-pocket costs may vary depending on plan benefits, eligibility, deductible, co-insurance and model of device chosen. This is not a guarantee of coverage or payment. Benefit is not available through all insurance plans. Please consult your plan for coverage details.

Federal Employees and Retirees may be eligible for a pair of Oticon Opn™ 3 hearing aids for $0 out-of-pocket.*Your brain works at incredible speeds to process sound. Finally there’s a hearing device that can keep up. Only Oticon Opn uses BrainHearing™ technology to process all the sounds around you exceptionally fast. Oticon Opn takes the work out of hearing, so you can enjoy a more effortless, natural hearing experience.

Attn: Federal Employees and Retirees

Take advantage of your $2,500 hearing benefit.

Call YHN at 877-696-5335.

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

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

NARFE MEMBER BENEFITS• Get monthly issues of narfe magazine with news and insights for the federal community. • Access the NARFE Federal Benefits Institute for powerful resources to help you fully understand and

manage your benefits. • Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits. • Visit the Member Perks page for a full listing of the many time-, money- and hassle-saving benefits available

only to NARFE members.

q YES. I want to join NARFE for the low annual dues of $40. q Mr. q Mrs. q Miss q Ms.

____________________________________________________Full Name

____________________________________________________Street Address

____________________________________________________Apt./Unit

____________________________________________________City State ZIP

____________________________________________________Phone

____________________________________________________Email

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

q Annuitant q Annuitant Spouse q Survivor Annuitant

q Please enroll my spouse

_______________________________________________Spouse’s Full Name

_______________________________________________Spouse’s Email

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

q MasterCard q VISA q Discover q AMEX

________________________________________________Card No.

Expiration Date _____ /_________ mm yyyy

________________________________________________Name on Card________________________________________________Signature________________________________________________Date

TOTAL DUES$40 Annual Dues X ___________ = ___________Per Person # Enrolling Total Dues

Dues payments are not deductible as charitable contributions for federal income tax purposes.

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

Looking to meet others in the federal community and participate in NARFE at a local level? Call 800-627-3394 to learn about a NARFE chapter in your area.

Or, if known, add Chapter # _________________________

NARFE MEMBERSHIP APPLIC ATION

Who Should Join the National Active and Retired Federal Employees Association?

1Q6

THREE EASY WAYS TO JOIN1. Complete this application and mail with your payment to NARFE / Member Records / 606 N. Washington St. / Alexandria, VA 22314-1914

2. Join online at www.narfe.org.3. Call 800-627-3394, Monday through Friday, 8 a.m. to 5 p.m. ET.

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.

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

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

NARFE MEMBER BENEFITS• Get monthly issues of narfe magazine with news and insights for the federal community. • Access the NARFE Federal Benefits Institute for powerful resources to help you fully understand and

manage your benefits. • Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits. • Visit the Member Perks page for a full listing of the many time-, money- and hassle-saving benefits available

only to NARFE members.

q YES. I want to join NARFE for the low annual dues of $40. q Mr. q Mrs. q Miss q Ms.

____________________________________________________Full Name

____________________________________________________Street Address

____________________________________________________Apt./Unit

____________________________________________________City State ZIP

____________________________________________________Phone

____________________________________________________Email

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

q Annuitant q Annuitant Spouse q Survivor Annuitant

q Please enroll my spouse

_______________________________________________Spouse’s Full Name

_______________________________________________Spouse’s Email

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

q MasterCard q VISA q Discover q AMEX

________________________________________________Card No.

Expiration Date _____ /_________ mm yyyy

________________________________________________Name on Card________________________________________________Signature________________________________________________Date

TOTAL DUES$40 Annual Dues X ___________ = ___________Per Person # Enrolling Total Dues

Dues payments are not deductible as charitable contributions for federal income tax purposes.

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

Looking to meet others in the federal community and participate in NARFE at a local level? Call 800-627-3394 to learn about a NARFE chapter in your area.

Or, if known, add Chapter # _________________________

NARFE MEMBERSHIP APPLIC ATION

Who Should Join the National Active and Retired Federal Employees Association?

1Q6

THREE EASY WAYS TO JOIN1. Complete this application and mail with your payment to NARFE / Member Records / 606 N. Washington St. / Alexandria, VA 22314-1914

2. Join online at www.narfe.org.3. Call 800-627-3394, Monday through Friday, 8 a.m. to 5 p.m. ET.

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.

Mr. Mrs. Miss Ms.

Full Name ______________________________________

Street Address __________________________________

Apt./Unit _______________________________________

City _________________________ State _____ ZIP _____

Phone (__________) ______________________________

Email __________________________________________

Date of Birth _________ /_________ / ____________________ dd mm yyyy

NARFE MEMBERSHIP INFORMATION

NARFE Membership ID ____________________________________

NARFE Chapter # (If applicable) _______________________________

YES. I Also Authorize My (NARFE Member) Spouse’s Dues To Be Withheld From My Annuity. (Additional annual dues of $34 and, if applicable, chapter dues to be withheld annually.)

If YES, enter spouse’s information below.

Spouse’s Name ___________________________________________

________________________________________________________

Spouse’s Membership ID ___________________________________

MAIL THIS FORM TO: NARFE, ATTN: Member Records, 606 N. Washington St., Alexandria, VA 22314-1914www.narfe.org 800-627-3394 [email protected]

NARFE Dues Withholding Application for Retirees

NARFE’s Dues Withholding Program

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 made above, and to pay the deducted sum to the National Active and Retired Federal Employees Association (NARFE). This authorization shall also apply to any and all dues changes certified by NARFE membership in accordance with elections I made above: 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 accor-dance 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.

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.

Advantages• Save 15% off your annual NARFE dues! • Sign up your spouse and double your savings!• You’ll never get another dues reminder from us!• Your monthly payment is affordable and convenient!• You may cancel your dues withholding at any time!

How does it work?One-twelfth of your total dues is automatically deducted from your monthly annuity. Your monthly deduction is determined by the following formula:

(NARFE dues ÷ 12) + (Chapter dues - if applicable ÷ 12) = Total Monthly Deduction

How do I sign up?It takes 60-90 days to process your application. Once the pro-cess 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.

YES. I want to enroll in NARFE’s Dues Withholding Program (Annual NARFE dues of $34 and, if applicable, Chapter dues of record to be withheld annually.)

– –Social Security Number (9-digit number)

C S (Include prefix, CSA or CSF)

(Include any applicable suffix)

– – –

Civil Service Annuity Number

Do not send money with this form DW-2 (11/16)

FINANCE AND LEGAL

InFirst Federal Credit Union800-328-1500www.infirstfcu.org As a member of NARFE, you have the privilege of joining InFirst Federal Credit Union, which has been serving active and retired federal employees since 1935. The credit union offers ex-tensive services at competitive rates to members nationwide at 5,000+ shared branches, 55,000 surcharge-free ATMs and 24/7 phone access. Accounts are insured by NCUA up to $250,000.

INSURANCE

GEICO800-368-2734www.geico.com/fed/narfe GEICO offers a special discount oppor-tunity for NARFE members. To find out how much you could save, visit our web-site or call today and mention that you are a NARFE member. Have your current coverage information available in order to secure a comparable quote. Your com-pleted quote will help benefit NARFE! For complete terms and conditions, visit www.narfe.org/memberperks.

NARFE Insurance Services800-233-5764www.narfeinsurance.com Designed and administered by Mer-cer Consumer, exclusively for NARFE members: senior age whole life, term life, Medicare supplements, hospital in-come plan, short-term recovery insur-ance, pet insurance, accidental death and dismemberment, cancer care,

enhanced dental insurance and long-term care.

MOVING SERVICES

Bekins Van Lines800-248-4810 [email protected] All NARFE members will receive con-tracted pricing for all interstate ship-ments. This will apply to packing, transportation and full-value coverage against damages. Please mention you are a NARFE member.

Wheaton World Wide Moving800-248-7960 [email protected] At Wheaton, we know interstate relo-cating is much more than trucks and boxes. Moving is not simply an address change. It’s a life change. With a net-work of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation. We offer you, as a NARFE member, benefits to help you have a positive interstate relocation experience. Call today and mention you are a NARFE member to start the moving process.

NARFE MERCHANDISE

NARFE General Store855-99NARFE (855-996-2733)www.narfegeneralstore.comAs the official provider of NARFE mer-chandise, the NARFE General Store offers NARFE-approved name badges, business cards, clothing, accessories, cups and mugs, plaques and clocks, and much, much more. Check out our online catalog for our customizable product line.

Omaha Steaks800-228-9055www.omahasteaks.com/NARFESince 1917, Omaha Steaks has been de-livering customers the finest gourmet steaks, seafood, poultry, pork, sides and desserts. Omaha Steaks make memo-rable gifts for any holiday, or you can enjoy a gourmet meal right at home. NARFE members can enjoy FREE SHIPPING on select combos and an ad-ditional 10% DISCOUNT at checkout! If calling, use promo code YTZ.

Purchasing Power866-670-3479purchasingpower.com/NARFEWith Purchasing Power, thousands of brand-name products are within reach. As members of NARFE, you can buy to-day and pay over time through payroll or annuity allotment. Choose from the latest computers, appliances, vacation packages and more. Never worry about hidden fees, credit checks or interest. Pay over 6 or 12 months, and you’re done. Save 5% with code NARFEVIP.

Verizon FiOSwww.narfe.org/memberperksNARFE members can save up to $10 a month on a new qualifying Triple Play bundle with Verizon FiOS Internet, TV and home phone service – savings of up to $120 per year. The FiOS 100% fiber-optic network delivers award-winning broadband and entertainment to your home. Only FiOS Internet custom-ers get upload speeds as fast as their download speeds. With FiOS TV, 625+

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

50 | M AY 2 0 17

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ks SAVE MONEY WITH NARFE PERKS

TELECOMMUNICATIONS

PRODUCTS

NEW

channels are available, including 185+ in HD, and over 130,000 On Demand titles, thousands free. This exclusive online-only savings is only available to new Verizon customers or those upgrading to the Triple Play Package.

Alamo800-462-5266www.alamo.com Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call or visit our website to-day and reference Contract ID 262544.

Avis Car Rental 800-633-3469www.avis.comAvis Car Rental is one of the world’s best-known car rental brands with ap-proximately 5,500 locations in more than 165 countries. Avis has a long histo-ry of innovation in the car rental indus-try and is one of the world’s top brands for customer loyalty. Call or book your reservation now at Avis.com using the NARFE AWD number A701900.

Budget Car Rental 800-633-3469www.budget.comBudget Car rental was founded in 1958 for the “budget-minded” renter. Today, with approximately 3,500 locations around the world, Budget is a leading rental car supplier now offering dis-counts to members of NARFE. Call or book your reservation now at Budget.com using the NARFE BCD number D871500.

Choice Hotels International800-258-2847www.choicehotels.com With 6,200 hotels in the United States and throughout the world, Choice Ho-tels® offers something for everyone. 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 can-not be combined with any other offer. Advance reservations required through

phone number or website above; can-not be redeemed at individual hotels. Choice Hotels brands are: Comfort Inn, Comfort Suites, Sleep Inn, Ascend Collection, Cambria, MainStay Suites, Suburban, EconoLodge, Clarion, Qual-ity and Rodeway Inn.

National800-CAR-RENTwww.nationalcarrental.com 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-CAR-RENT® and reference Contract ID 5282909. For complete terms and conditions, visit www.narfe.org/ memberperks.

Wyndham Hotel Group877-670-7088 NARFE members receive up to 20% off the “Best Available Rate” at par-ticipating locations. Call and give the agent your special discount ID number, 8000002694, at time of booking to receive discount. Call to reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Baymont Inns and Suites®, Hawthorn Suites® By Wynd-ham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®. Advance reservations required through phone number above; cannot be re-deemed at individual hotels.

Wyndham Extra Holidays800-428-1932 www.extraholidays.comExcellent service and the finest comforts are standards you can always rely on with Wyndham Extra Holidays. With more spacious floor plans than a regular hotel, you can enjoy a One-, Two- or Three-Bed-room suite with separate living areas and partial or fully equipped kitchens. Please

use promo code 8000002694 when calling or booking online.

HearUSAwww.hearusa.com/narfe The Nation’s Most Trusted Name in Hearing Care. Choose from 250+ hear-ing aids from 11 manufacturers with $0 co-pay for many plans. Wireless. Blue-tooth. Smartphone compatible. Nearly invisible. Risk-free 60-Day trial. Free fol-low-up care. Free 3-Year warranty. Call 1-855-845-2706 to see if you qualify for 2 FREE hearing aids.

Life Line Screening800-324-9906www.lifelinescreening.com/NARFELife Line Screening, America’s lead-ing provider of community-based preventive health screenings, will con-duct health screenings using state-of-the-art ultrasound technology in your neighborhood. To schedule an appoint-ment, please call the number above and give the operator code number BKHN075 or visit the website.

Sunrise Senior Livingwww.SunriseSeniorLiving.com Sunrise Senior Living, a leading provider of high-quality, individualized, senior liv-ing services, offers NARFE members a special, discounted rate. Mention code: NARFE-discount during your visit and receive a one-time 5% off of suite/room rates at any of Sunrise’s U.S. communi-ties for one year. For a complete list of Sunrise locations, visit www.SunriseSe-niorLiving.com.* Void where prohibited by law. Discount not valid for skilled nursing admissions. Restrictions may apply. Discount not valid for respite/short-term stays of fewer than 90 days. May not be combined with other discounts or offers. Discount valid for a period of twelve (12) consecutive months only.

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. Check out Member Perks in the NARFE website for more details!

TRAVEL

WELLNESS

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ON GUARD FOR THE PRESIDENTIn this photo, circa 1910, a U.S. Park Policeman patrols near the State, War and Navy Building, now known as the Eisenhower or Old Executive Office Building in Washington, DC. Although the present organization dates from the 1860s, its origins can be traced back to the 1790s when watchmen were hired to guard federal property in the newly created District of Columbia.

PHOTO from the Records of the National Archives History Office, Records of the Office of Public Buildings and Public Parks of the National Capital, National Archives; in collabora-tion 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 govern-ment. To join, visit http://shfg.org.

52 | M AY 2 0 17

The United States Park Police is one of the oldest uniformed federal law enforcement agen-cies in the United States and is responsible for policing many of the famous monuments in the United States, including enforcement of the no-drone zone in Washington, DC, and

national parks. The force includes a Horse Mounted Unit and Aviation Unit, responsible for transporting the president and other dignitaries, accord-

ing to the agency website at www.nps.gov/uspp.

DID YOU KNOW?

“My friends all hate their cell phones… I love mine!”

Here’s why.Say good-bye to everything you hate about cell phones. Say hello to the Jitterbug Flip.

“Cell phones have gotten so small, I can barely dial mine.” Not the Jitterbug® Flip. It features a large keypad for easier dialing. It even has a larger display and a powerful, hearing aid-compatible speaker, so it’s easy to see and conversations are clear. “I had to get my son to program it.” Your Jitterbug Flip set-up process is simple. We’ll even program it with your favorite numbers. “What if I don’t remember a number?” Friendly, helpful Personal Operators are available 24 hours a day and will even greet you by name when you call. “I’d like a cell phone to use in an emergency.” Now you can turn your phone into a personal safety device when you select a Health & Safety Package. With 5Star® Service, in any uncertain or unsafe situation, simply press the 5Star button to speak immediately with a highly-trained Urgent Response Agent who will confirm your location, evaluate your situation and get you the help you need, 24/7.

“My cell phone company wants to lock me in a two-year contract!” Not with the Jitterbug Flip. There are no contracts to sign and no cancellation fees.

“Many phones have features that are rarely needed and hard to use!” The Jitterbug Flip contains easy-to-

use features that are meaningful to you. A built-in camera makes it easy and fun for you to capture and share your favorite memories. And a flashlight with a built-in magnifier helps you see in dimly lit areas, the Jitterbug Flip has all the features you need. Enough talk. Isn’t it time you found out more about the cell phone that’s changing all the rules? Call now, Jitterbug product experts are standing by.

We proudly accept the following credit cards:

Call toll-free to get your Jitterbug Flip Cell Phone Please mention promotional code 105431.

1-877-444-1003 www.JitterbugDirect.com

Order now and receive a

FREE Car Charger – a $25 value

for your Jitterbug Flip. Call now!

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IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. Plans and Services require purchase of a Jitterbug phone and a one-time setup fee of $35. *Monthly fees do not include government taxes or assessment surcharges and are subject to change. Coverage is not available everywhere. 5Star or 9-1-1 calls can only be made when cellular service is available. 5Star Service will be able to track an approximate location when your device is turned on, but we cannot guarantee an exact location. 1We will refund the full price of the Jitterbug phone and the activation fee (or setup fee) 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 be deducted from your refund for each minute over 30 minutes. You will be charged a $10 restocking fee. The shipping charges are not refundable. There are no additional fees to call GreatCall’s U.S.-based customer service. However, for calls to a GreatCall Operator in which a service is completed, you will be charged 99 cents per call, and minutes will be deducted from your monthly rate plan balance equal to the length of the call and any call connected by the Operator. Jitterbug, GreatCall, and 5Star are registered trademarks of GreatCall, Inc. ©2017 GreatCall, Inc. ©2017 firstSTREET for Boomers and Beyond, Inc.

FREE Car Charger

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Contracts

Nationwide Coverage

Monthly Plan

Operator Assistance

Long Distance Calls

Voice Dial

Friendly Return Policy1

$14.99/mo

24/7

No add’l charge

FREE

YES

30 days

200Monthly Minutes

$19.99/mo

600

24/7

No add’l charge

FREE

YES

30 days

* *

Health & Safety Packages available as low as $19.99/month*.More minute plans available. Ask your Jitterbug expert for details.

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