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RETIREMENT LIFE JANUARY 2011, V olume 87, N umber 1 LEGISLATIVE REPORT 8 What NARFE Anticipates in the 112th Congress Cover design by Jim Richards 14 Bill Expanding Telework Goes to White House 14 NARFE: Add Feds to Senior Relief Bill 16 Medicare Fairness Bill Introduced COLUMNS 18 Register Now for NARFE’s Legislative Conference 6 Message From the National President 20 Civics 101: Historic GOP Gains; Chambers Split 36 Managing Money NARFE’s Accomplishments, 111th Congress 22 38 Live Well 24 NARFE’s Legislative Program, 112th Congress OVER TORY SPECIAL SECTION C S 32 New National 28 The Fiscal Commission: For feds, a plan by the Executive Board commission’s co-chairs would cut retirement and health benefits, freeze pay for three years and reduce the work force by 10 percent. NARFE Resources DEPARTMENTS Leg. Conference Registration . . . 19 40 Questions & Answers Membership Application ...... 47

46 NARFE News Dues Withholding ...... 49

50 Out & About Alzheimer’s Coupon ...... 50

51 Letters NARFE Member Perks ...... 52 54 For the Record: TSP Investments, COLA Chart

visit us online at www.narfe.org NATIONAL OFFICERS JOSEPH A. BEAUDOIN , President [email protected] PAUL H. CAREW , Vice President Editor [email protected] Margaret M. Carter ELAINE HUGHES , Secretary Assistant Editor [email protected] Donna J. St. John CHARLES W. SAYLOR , Treasurer [email protected] Graphic Designer Beth Bedard Contributing Designers REGIONAL VICE PRESIDENTS Charlene Gridley REGION I Gilbert W. Blaisdell REGION VI Jerome S. Smith Jim Richards (Connecticut, Maine, Massachusetts, New (Arkansas, Louisiana, Oklahoma, Editorial Board: Hampshire, , Rhode Island and Republic of Panama and Texas) Joseph A. Beaudoin Vermont) 5900 Raleigh Drive Paul H. Carew 3 Larnards Court Tyler, TX 75703-5636 Elaine Hughes Amesbury, MA 01913-3309 Tel: 903-534-5849 Charles W. Saylor Tel: 978-388-1830 E-mail: [email protected] E-mail: [email protected] Editorial Office REGION VII Betty Lucero-Turner NARFE, Attn: NARFE magazine REGION II Ronald P. Bowers (, Colorado, New Mexico, Utah and 606 North St. (Delaware, District of Columbia, Maryland, Wyoming) Alexandria, VA 22314-1914 New Jersey and Pennsylvania) 4437 Turnberry Crescent Phone: 703-838-7760 404 Kilree Road, #301 Pueblo, CO 81001-1175 Fax: 703-838-7781 Timonium, MD 21093-7599 Tel: 719-583-0910 E-mail: [email protected] Tel: 410-308-0420 E-mail: [email protected] E-mail: [email protected] National Headquarters REGION VIII Helen L. Zajac NARFE Telephones Open REGION III Donald Stewart (California, Guam, Hawaii, Nevada 8 a.m.-4:45 p.m. (ET) Monday-Friday (Alabama, Florida, Georgia, Mississippi, and Republic of Philippines) Telephone: 703-838-7760 Puerto Rico, South Carolina and Virgin 106 Cottonwood Drive Fax: 703-838-7785 Islands) Vallejo, CA 94591-5659 E-mail: [email protected] 531 Sevilla Ave. Tel: 707-644-7565 Coral Gables, FL 33134-5714 Fax: 707-644-5019 Toll-free phone numbers ( specific use only ) Member Records: 800-456-8410 Tel: 305-442-6388 E-mail: [email protected] E-mail: [email protected] Recruitment & Retention: 800-627-3394 REGION IX Lanny G. Ross Legislative Hotline: 877-217-8234 REGION IV Paul E. Johnson (, Idaho, Montana, Oregon and Advertising Sales (Illinois, Indiana, Michigan, and Washington) Warren Berger Wisconsin) 7450 Illahee Road, NE Media People Inc. P.O. Box 234, 7183 Main St. Bremerton, WA 98311-9431 122 East 42nd Street, Suite 725 Wadesville, IN 47638-0234 Tel: 360-692-9741 New York, NY 10168 Tel: 812-306-5137 Fax: 360-662-0384 212-779-7172, ext. 223 Fax: 812-673-4989 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] REGION X William F. Martin Web site: www.narfe.org REGION V Richard G. Thissen (Kentucky, North Carolina, Tennessee, (Iowa, Kansas, Minnesota, Missouri, Virginia and West Virginia) The Association, since July 1970, has been Nebraska, North Dakota and South Dakota) 294 Tyler Point Lane classified by the IRS as a tax exempt labor or - P. O. Box 485 Bumpass, VA 23024-4633 ganization [not a union]; however, dues and Lake Ozark, MO 65049-0485 Tel: 540-872-3345 gifts or contributions to the Association are Tel: 573-365-5679 Fax: 540-872-3445 not deductible as charitable contributions for Fax: 573-964-5074 E-mail: [email protected] income tax purposes. E-mail: [email protected] NARFE for the Visually Impaired On the Telephone: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. Volume 87, Number 1. NARFE (ISSN 1948-4453) is published monthly by the National Active and Retired Fed - For more information, contact the National ® eral Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Federation of the Blind NFB-NEWSLINE Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Non-member sub - service at 866-504-7300 or go to www.nfb scription rate $45. Postmaster: Send address change to: NARFE Attn: Member Records, NARFE 606 N. Washington newsline.org. St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without On Tape: Issues of NARFE magazine are also delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures available on cassette through the National Li - and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. brary Service for the Blind and Physically Contents of this magazine are copyrighted © 2011. Advertisements in the magazine are not endorsements of Handicapped. To find out about availability products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same in your area, call 800-424-8567 and ask for basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to ap - the Reference Section. pear in NARFE, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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Looking Back ... Looking Ahead his is the first column of a new year, and I tain that we will be working to continue to protect your thought I’d take the opportunity to look earned benefits in 2011 and beyond. The results of the No - back as we conclude 2010 and look ahead vember midterm elections certainly changed the face of as we begin 2011. First, let me both houses of Congress, especially in the House express my appreciation – and of Representatives. Be assured that we, at Head - Tthe appreciation of NARFE – to those who left quarters, are already in contact with these new office at the end of October 2010. I especially members to solidify our relationship. want to thank the three Headquarters officers – NARFE will be facing a number of challenges former President Margaret L. Baptiste, former in the months to come. As this issue of the mag - Secretary Nathaniel L. Brown and former Treas - azine went to press, we were especially con - urer Richard C. Ostergren. I have known each of cerned by the proposal of the chairmen of the them for many years and served with them at National Commission on Fiscal Responsibility Headquarters for the past two. Their service to and Reform – the “Fiscal Commission” – that our Association has been invaluable. could adversely affect NARFE members. (Please I’d also like to salute and thank for their see p. 28 for our Cover Story on the Fiscal Com - NARFE service four members of the National YOU CAN be mission.) In November, we used e-mail and tele - Executive Board (NEB) who did not seek re-elec - phone to urge members to contact their senators tion: Augie Stratoti (Region I), Robert S. Harrell certain that we and representatives and oppose the Fiscal Com - (Region III), Jerry D. Hatfield (Region VI) and mission co-chairs’ plan to cut their earned fed - Martha L. Leiker (Region VII). will be working eral civil service retirement and health benefits, On page 32 of this issue of NARFE magazine, to continue to to freeze federal pay for three years and to re - you will find a photo of the new NEB, which will duce the federal work force by 10 percent. If you work with you and for you for the next two protect your haven’t signed up for the “Rapid Response years. As National President, I’d like to welcome Team” by sending us your e-mail address so that each of them, especially those newly elected. earned benefits we can quickly contact you, please consider Here at NARFE Headquarters, they are: National in 2011 and doing so. Go to the Legislation Home Page on Vice President Paul H. Carew, National Secretary the NARFE Web site and sign up. Elaine Hughes and National Treasurer Charles beyond. Once again, I’d like to address our retention W. Saylor. In the field, new regional vice presi - problem. For those members whose member - dents (RVPs) are: Gilbert W. Blaisdell (Region I), ships are up for renewal and are either consid - Ronald P. Bowers (Region II), Donald Stewart (Region III), ering dropping their memberships because of the dues in - Jerome S. Smith (Region VI), Betty Lucero-Turner (Region crease or would like to avoid the increase passed at the 2010 VII) and William F. Martin (Region X). They join these RVPs National Convention, here’s a money-saving tip for you. If who were re-elected at the National Convention: Paul E. you prepay your 2011 dues prior to March 1, you can renew Johnson (Region IV), Richard G. Thissen (Region V), Helen L. at the 2010 rate – an $11 savings. Zajac (Region VIII) and Lanny G. Ross (Region IX). I look for - Let me close by wishing all of you a healthy and happy ward to working with each of them during the next two New Year. years. As we look at the tasks ahead, perhaps the most daunting is working with the new 112th Congress, which convenes this month. We hope that we will have a Congress Joseph A. Beaudoin that is NARFE-friendly. But friendly or not, you can be cer - [email protected]

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What NARFE Anticipates in LeadershipWill 112th Congress Change in Key s the 112th Congress made plans to convene on House Panels January 3, NARFE National President Joseph A. Beaudoin predicted a challenging two years ahead I The 112th Congress will be sworn in on January 3. In total, for the Association and its members. “We obvi - one-fifth of the new Congress A will be freshmen. ously have our work cut out for us in the need to educate lawmakers in a difficult fiscal atmosphere,” Beaudoin said. “Our earned retirement I The freshman class includes 25 military veterans – three and health benefits have been viewed by some as ‘low-hanging fruit’ in the Senate and 22 in the House of Representatives, in the effort to balance the budget. The situation is exacerbated by anti- according to Congressional government rhetoric that obscures the facts about federal employment Quarterly . and retirement. But we are up to the task.” I CQ also reports that the average age of members of In the 2010 midterm congressional generous to unfairly attack federal em - the 112th Congress is 62, elections, the balance of power shifted ployment and compensation. compared with 63 in the in favor of Republicans, who took de - For example, in a September speech 111th. Six percent of the cisive control of the House of Repre - to a Cleveland, OH, audience, in - House are under 40 years of sentatives and reduced the Democrats’ coming House Speaker John A. age; for the Senate, 2 percent. majority in the Senate from 59 to 53 of Boehner, R-OH, said: “It’s just nonsense 100 seats. to think that taxpayers are subsidizing I For the first time, the country During the 2010 campaigns, many the fattened salaries and pensions of will have a Democratic candidates exploited the recession, federal bureaucrats who are out there president, a Democratic- fears about spending and the CATO In - right now making it harder to create controlled Senate and a stitute’s and Heritage Foundation’s private-sector jobs.” Republican-controlled House flawed reports alleging that federal In November, Boehner said, “There at the same time. worker pay and benefits are overly ought to be a freeze on the hiring of new federal employees, and, frankly, LEGISLATIVE HOTLINE we ought to freeze the pay. The av - Toll-free! (24 Hours): For coverage of the erage federal worker makes twice as 877-217-8234 Fiscal Commission, much as the average private-sector worker.” Legislative Action Center: please see p. 28. The Office of Personnel Manage - www.narfe.org ment announced in October that the

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pay advantage enjoyed by private-sector STORY HIGHLIGHTS workers over federal employees grew to I Having gained a majority in the House in the 24 percent in 2010, two percentage November elections, Republican members now points higher than in 2009. assume leadership roles. The new House leadership Beginning several months prior to the has signaled that federal employees and retirees will elections, incoming Majority Leader Eric be targets of their budget-cutting efforts. I. Cantor, R-VA, began encouraging visi - I House committees of key interest to NARFE will tors to his Web site to vote on five spe - have new chairs, including the Government Reform cific proposals to cut federal spending. Rep. John A. Boehner Committee and the Budget Committee. Cantor hosts the site at http://republican I Senate committees probably will have fewer changes whip.house.gov/YouCut. In July, a pro - in leadership. posal to cut federal civilian retirement annuities by basing them on the highest hearings into the Postal Service’s financial problems. five years of salary – instead of the On October 29, former Government Reform Committee highest three years – was ranked as the Chairman and NARFE champion Thomas M. Davis III told second most popular reduction option Government Executive magazine: “Darrell will be pro-federal on his Web site. In May, Cantor’s site pro - employee, but he will not be pro-union.” Issa will be “a friend posed to deny federal workers a modest Rep. Eric I. Cantor to federal executives in giving them the right tools they 1.4-percent pay raise in 2011. need to get the job done,” Davis added. That means pay re - Their leaders’ statements to the contrary, key majority form would likely be on the new chairman’s agenda. members like Rep. Frank R. Wolf, R-VA, have worked for Given NARFE’s nonpartisan status, the Association is in decades on a bipartisan basis on behalf of federal workers a strong position to represent the interests of federal workers and annuitants. Most recently, Wolf and 13 of his Repub - and annuitants with Issa and other new majority leaders. lican colleagues, including Reps. Shelley Moore Capito, WV; At press time, Rep. Jason Chaffetz, R-UT, Robert J. Wittman, VA; Brian P. Bilbray, CA; Steven C. was next in line to become chairman of the LaTourette, OH; Thaddeus G. McCotter, MI; and Dave Subcommittee on the Federal Workforce. Reichert, WA, demonstrated their support for the federal However, Chaffetz could exercise his sen - family by voting for federal worker telework legislation on iority rights to choose a subcommittee with November 18 (see story, p. 14). a different jurisdiction or leave the Govern - Now in the minority, the House Democratic Caucus in ment Reform and Oversight Committee to November selected Rep. Steny H. Hoyer, D-MD, as Minority serve on another panel. In addition, it was Whip. Historically, Hoyer has played a significant role in unclear if subcommittee jurisdictions NARFE’s legislative accomplishments since he was first would be shifted by Issa. Rep. Jason Chaffetz elected to the House in 1981. During the 111th Congress (2009- 2010), Chaffetz introduced legislation that would have re - HOUSE GOVERNMENT quired the government to fire federal workers if the Internal REFORM COMMITTEE Revenue Service placed a tax lien on them. The new House leadership plans to Chaffetz has said, “I believe we’re paying too many change the name of the committee with people [federal workers] too much money.” In November, he jurisdiction over all federal civil service law told Washington-based WTOP radio that he would freeze from the Committee on Oversight and federal pay and cut it by 10 percent. Chaffetz also supports Government Reform to the Committee on a cut in the size of the federal work force, but says it could Government Reform and Oversight. be achieved through consolidation and attrition. Chaffetz is Rep. Darrell E. Issa, R-CA, will replace interested in postal reform and would reduce the Postal Ser - Rep. Edolphus Towns, D-NY, as chairman. Rep. Darrell E. Issa vice’s expenses by closing 150 of 300 distribution centers Issa said that he plans to devote consider - and a significant number of post offices. able attention to oversight of the Obama administration. And Chaffetz’s staff told federal-postal coalition representa - the new chairman has signaled interest in holding oversight tives in November that silence from federal and postal em -

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ployees and retirees will be taken as approval for his civil BREAKING NEWS service proposals. “We know that there can be a difference between ‘heat of NARFE Disappointed in the moment’ campaigning and the practicality of gov - Pay-Freeze Proposal erning,” said NARFE’s Beaudoin. “NARFE stands ready to ARFE President Joseph A. Beaudoin reacted with work with members of Congress from both sides of the Ndisappointment to President Obama’s call for a aisle. And it is our intention to educate lawmakers, particu - two-year pay freeze for civilian federal workers. “We un - larly freshman members, about the value federal workers derstand the purpose of shared sacrifice. But federal add to the daily lives of all Americans. We also want to set employees and their families once again are being the record straight about earned federal civil service wages, singled out,” said Beaudoin. “This action comes at a time retirement and health benefits.” when the federal government can ill afford to put recruit - ment and retention at risk. Indeed, freezing or cutting pay HOUSE BUDGET COMMITTEE sends the wrong signal to the best and brightest workers Rep. Paul Ryan, R-WI, will be the new federal agencies will need in these difficult times.” chairman of the House Budget Com - mittee. He is the author of several substi - tute budget resolution amendments that Sen. Susan M. Collins, R-ME, will continue to be the full com - have included instructions to cut federal mittee’s ranking minority member. Both Lieberman and civilian retirement and health benefits – Collins have been supportive of the federal-postal commu - most recently in 2009, when he pro - nity. posed $10 billion in reductions over 10 Another NARFE friend, Sen. Daniel K. Akaka, D-HI, is years. In his “Roadmap for America,” the likely to remain as chairman of the Senate Subcommittee on new chairman suggested that Medicare Rep. Paul Ryan the Federal Workforce. However, Akaka could exercise his and Medicaid be privatized by giving seniority rights to choose a subcommittee with a different beneficiaries vouchers to buy health insurance on the pri - jurisdiction, or subcommittee jurisdictions could be shifted, vate market. Ryan also supports the partial privatization of with Akaka’s subcommittee no longer overseeing federal Social Security. civil service law. A long-time NARFE ally, Rep. Chris Van Hollen Jr., D-MD, The outgoing subcommittee ranking member and fed - was selected by his Democratic colleagues in November to eral-friendly lawmaker Sen. George V. Voinovich, R-OH, has be the ranking member on the Budget Committee. retired. The new ranking member would likely be one of the The House Budget Committee would be on the front current Republican members of the committee, including lines of Congress’ response to spending-cut and revenue- Sens. Collins; Lindsey Graham, R-SC; John McCain, R-AZ; raising recommendations made by the National Commis - John Ensign, R-NV; or Tom Coburn, R-OK. sion on Fiscal Responsibility and Reform. All or part of the commission’s suggestions could be included in the budget SENATE BUDGET COMMITTEE resolution, which sets Congress’ fiscal roadmap for the an - Like its House counterpart, the Senate Committee on the nual budget process. Usually, the budget resolution is con - Budget will play a key and early role in deciding whether to sidered in April, but it could be taken up earlier, particularly include all or part of the Fiscal Commission’s recommenda - if a Republican majority follows the lead of their predeces - tions in the annual budget resolution. sors who took control of the House in 1995. Sen. Kent Conrad, D-ND, is remaining as the Budget Committee chairman. However, outgoing ranking member SENATE CHANGES Sen. Judd Gregg, R-NH, is retiring and is likely to be replaced Changes in the Senate will be less dramatic than in the by Sen. Jeff Sessions, R-AL. In the event that Senate Repub - House since Democrats will retain control, albeit with a licans look for an alternative to Sessions, Sens. Mike Crapo, slimmer majority – 53 out of 100 senators. R-ID; Ensign; John Cornyn, R-TX; Graham; and Lamar Sen. Joseph I. Lieberman, I-CT, will remain chairman of the Alexander, R-TN, are next in line. Senate Committee on Homeland Security and Governmental By Dan Adcock, Legislative Director, and Affairs, which has jurisdiction over federal civil service law. Alan Lopatin, Legislative Counsel

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Bill Expanding Telework for Feds Goes to White House for Signature n November 18, the House passed and sent STORY HIGHLIGHTS to President Obama a bill that will expand I The House has passed and sent to President opportunities for federal employees to work Obama a bill to expand telework opportunities for from outside of the office, from home or federal employees. O I Executive branch agencies must establish policies elsewhere. H.R. 1722, the Telework Enhancement Act of 2010, will allowing eligible employees to work from“an require executive branch agencies to establish policies al - approved worksite other than the location from lowing eligible employees to telework. The legislation de - which the employee would otherwise work.” fines telework as “a work flexibility arrangement under I President Obama is expected to sign the bill. which an employee performs the duties and responsibilities of such employee’s position, and other authorized activities, prove the recruitment and retention of federal employees from an approved worksite other than the location from by increasing the flexibility of their work schedules; save which the employee would otherwise work.” overhead costs for office space; lower absenteeism; reduce The bill was introduced March 25, 2009, by Reps. John P. commuting costs, traffic congestion and pollution; and im - Sarbanes, D-MD; Gerry E. Connolly, D-VA; Danny K. Davis, prove the ability of the federal government to maintain op - D-IL; Stephen F. Lynch, D-MA; James P. Moran, D-VA; C. A. erations in the case of emergency or inclement weather. “Dutch” Ruppersberger, D-MD; and Frank R. Wolf, R-VA. Agencies will be required to establish a telework policy The vote in the House was 254-152, with 240 Democrats and determine employee eligibility within 180 days of the and 14 Republicans voting in favor of the bill, and three De - bill becoming law. At press time, President Obama was ex - mocrats and 149 Republicans voting against the measure. pected to sign the legislation into law. The Senate passed the bill on September 29 by unanimous Prior to the House vote, NARFE joined other federal and consent. postal employee and retiree organizations in a letter urging During the House debate, bill sponsors argued that by all 435 representatives to vote for the legislation. expanding telework, the bill would boost productivity; im - By John Hatton, Legislative Specialist NARFE: Ad dFeds to Senior Relief Bill t press time, the House was supposed to STORY HIGHLIGHTS take up legislation in December that would I In the lame-duck session, the House planned to take provide a one-time $250 payment to Social up legislation to grant seniors a $250 payment in lieu Security recipients, veterans and individuals of a Social Security COLA in 2011. A I NARFE and its coalition partners kept up pressure with disabilities (recipients of disability insurance under So - cial Security). on Congress to include relief for public service On October 14, outgoing House Speaker , retirees, including federal retirees, who are not D-CA, announced that the bill, H.R. 5987, the Seniors Pro - eligible for Social Security benefits and who also will tection Act, would be considered during the lame-duck ses - not get a 2011 COLA. They said it was a“matter of sion before the end of the 111th Congress (2009-2010). The equity.” payment was proposed in anticipation of the official news delivered on October 15 by the Bureau of Labor Statistics that there will be no cost-of-living adjustment (COLA) in Unfortunately, the bill left out more than one million 2011 as a result of economic conditions. federal, state and local government retirees who are not

14 JANUARY 2011 | NARFE

Legislative Report

eligible to receive Social Security benefits. their lawmakers to ensure that all federal, state and local By way of precedent, during the consideration of the government retirees were included in the legislation. American Recovery and Reinvestment Act of 2009, retired In a joint letter initiated by NARFE, 16 public service em - public employees were initially excluded from a $250 pay - ployee/retiree organizations urged the House leadership in ment to Social Security recipients, but later – with the as - November to ensure that the Seniors Protection Act included sistance of Sens. John F. Kerry, D-MA, and Max Baucus, D- equivalent relief for federal, state and local government re - MT, and through NARFE’s efforts – a $250 refundable tax tirees who are not eligible to receive Social Security. They said credit for public service retirees was included in the legis - that “offering relief to all older Americans – retirees of both lation that became law in February 2009. the private and public sectors – is a matter of equity.” On October 15, NARFE asked members to write and call By Dan Adcock, Legislative Director Medicare Fairness Bill Introduced he Medicare Premium Fairness Act, S. 3950, a STORY HIGHLIGHTS bill introduced November 17 by Sen. John F. I Sen. John Kerry has introduced a bill that would Kerry, D-MA, would protect all Medicare ben - protect all Medicare beneficiaries from an increase eficiaries – including federal civil service annu - in Part B premiums in 2011. T I Under current law, most Medicare beneficiaries are itants who are not eligible to receive Social Security – from an increase in their Part B premium in 2011, when they will not required to pay for the increase in any year they not receive any cost-of-living adjustment (COLA). do not receive a Social Security COLA. But public NARFE built support for the bill by encouraging 20 or - service retirees are not covered by this law. ganizations representing more than 31 million federal, state I NARFE encouraged 20 other organizations to push and local government workers and retirees to endorse the for Kerry’s bill, and the Association asked for speedy legislation. enactment of the legislation to allow time to make The Centers for Medicare & Medicaid Services an - processing adjustments. nounced in November that most Medicare beneficiaries will continue to pay the same $96.40 premium they have paid beneficiaries would not,” said NARFE President Joseph A. since 2008. Under present federal law, about 73 percent of Beaudoin. “We applaud Sen. Kerry for taking the lead on this Medicare beneficiaries are not required to pay — or are “held important legislation.” harmless” — for the increase in Part B premiums in any year Similar legislation passed the House by a vote of 406-18 when they receive no Social Security COLA. However, more in September 2009 but stalled in the Senate. than a million public service retirees not eligible for Social “We urge the Senate to speed consideration of Sen. Security benefits will pay $115.40 a month in 2011. Kerry’s bill to ensure that the Centers for Medicare & Med - “This bill is about equity for all Medicare beneficiaries icaid Services has enough time to adjust its processing sys - because, without it, federal, state and local government re - tems to prevent federal annuitants and other retirees from tirees who are not Social Security-eligible would have to pay paying the premium increase before it becomes effective in the Part B rate hike in a no-COLA year, while Social Security January 2011,” added Beaudoin. At press time, S. 3950 was being considered in the lame- duck session of the 111th Congress (2009-2010), and its prospects were uncertain. For the latest developments on Phone Numbers to Know this and other important bills, NARFE members should con - ARFE members should keep this information by sult the NARFE Legislative Hotline. The weekly Hotline is Ntheir telephones: available by e-mail to members who include their e-mail ad - CapitolToll-free: 866-220-0044 dress in their membership record; on the NARFE Web site NARFE Legislative HotlineToll-free: 877-217-8234 at www.narfe.org; and by phone toll-free at 877-217-8234. By Dan Adcock, Legislative Director

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Register Now for NARFE Conference he election results are in, the Fiscal Commis - conference, March 8, on Capitol Hill speaking with their sion’s recommendations have been released, members of Congress. pressures continue on the economy and high The conference registration fee is $175, which includes T unemployment persists. All of this leaves the three buffet breakfasts, two full lunches, one buffet dinner newly sworn-in Congress overwhelmed with suggestions. (full dinner), training materials and transportation to and from Now is the time for the federal community to step up and the U.S. Capitol on Tuesday. Register by completing the form begin educating members of Congress about federal bene - on the opposite page and returning it to NARFE Headquar - fits programs. The 2011 NARFE Legislative Training Con - ters or by going online to www.narfe.org/legislation. ference is a prime place to begin. The conference will be Sat - The 2011 NARFE Legislative Training Conference daily urday, March 5, through Tuesday, March 8, at the Hyatt Re - room rate will be $159 plus 10.25 percent state and local oc - gency Crystal City in Arlington, VA. cupancy taxes, for a total of $175.30 (single- and double- The biannual conference will brief NARFE members on room occupancy). Call the Hyatt Regency Crystal City at the issues facing the federal community, NARFE’s legislative 888-421-1442 to make a room reservation or go to the agenda and the overall political process in Washington. The NARFE Web site for a link to online room reservations. Be conference will include plenary sessions with multiple guest sure to specify that it is for the National Active and Retired speakers and break-out training sessions, all designed to Federal Employees Association Legislative Training Confer - help NARFE members become first-class advocates and ad - ence. To guarantee the NARFE rate, please make your reser - vocacy trainers. Participants will spend the final day of the vation no later than February 8. I

18 JANUARY 2011 | NARFE March 5-8, 2011 Registration must be returned by February 8, 2011. Registration Form Name: J Mr. J Mrs. J Miss J Ms. Membership #______

______Last First Middle Name as you would like it on badge: ______

Federation or chapter officer title for your badge (choose only one title): ______

Home address: ______

______Cell Phone: ______

Phone number:______E-mail address:______

Notify in case of emergency: ______Name Phone number Address: ______

$175 registration fee is not refundable. J Charge to my credit card $______J J J J Please complete registration form and MasterCard Visa Discover AMEX return with check made payable to Card # ______NARFE, or charge to your credit card. Exp. Date ______/ ______Mail to: (mm) (yy) NARFE Conference, Budget & Finance Name on card (print) ______606 North Washington St. Alexandria, VA 22314-1914 Signature ______Date ______

Please Note: Conference meals and events are For Internal Planning Purposes Only-This is for registered attendees. Registered attendees NOT a Reservation. may bring guests to NARFE-provided meals for Do you plan to ride the NARFE-provided bus to a separate fee. Capitol Hill on March 8th? J Yes J No Will you have a guest(s) (who is not registering) Do you plan to return to the hotel from Capitol Hill attend any meals? J Yes J No on the bus later that afternoon? J Yes J No Name of Guest(s)______Desired Return Time:* ______J 12:30 PM J 2:30 PM J 3:30 PM Please add the amount of $175 per guest to your registration check or charge. *These times will not necessarily be offered.

NARFE | JANUARY 2011 19 Legislative Report

CIVICS 101: THE INFORMED CITIZEN Historic GOP Gains; Chambers Split t press time, three House races were still un - STORY HIGHLIGHTS decided. Republicans gained six Senate seats I Here is a listing of the districts and states in which by winning currently Democratic seats in new members of Congress were elected. A Arkansas, Illinois, Indiana, North Dakota, Pennsylvania and Wisconsin. Republicans gained at least 63 members should be among the first to congratulate and meet House seats – possibly two more – easily enough to “control” with their member-elect. Offer to help in the transition from the majoritarian House of Representatives. Only two con - candidate to lawmaker. Send an open-ended invitation to ad - gressional districts saw incumbent Republicans defeated (HI- dress a group of chapters. Be flexible as to when and where. 1 and LA-2). In only one other race – the open seat in Remember: Most freshman members of Congress know little Delaware – will there be a first-term Democrat. or nothing about federal worker or retiree issues.

HISTORIC MAGNITUDE STATES ELECTING NEW MEMBERS If the net gain for Republicans in the House is 65, it Listed below are the 42 states that elected someone other would be the third largest seat change for the party out of than the incumbent. Many were seats left open by the re - power in midterm elections since 1914. The only larger tirement, primary defeat or run for other office of the in - swings in the House were the 76-seat gain by Democrats cumbent. These incumbents are listed in parentheses. in 1922 and the 81-seat gain by Republicans in 1938. The Names that are all in CAPITALS denote the winner. Names six Senate seat gain ranks in eighth place. in BOLD CAPITALS indicate a party takeover. An asterisk Until they are sworn in, the first-time winners will divide denotes the 20 members defeated in their first bid for re- their time between Capitol Hill and their districts. Many will election. The three UNDECIDED House races are in italics. retain a campaign office, Web site and phone number. NARFE By Christopher Farrell, Legislative Representative

AL-02* Bobby Bright (D) vs MARTHA ROBY (R) GA-07 (Linder) Doug Heckman (D) vs ROB WOODALL (R) AL-05* (Griffith) Steve Raby (D) vs MO BROOKS (R) GA-08 Jim Marshall (D) vs AUSTIN SCOTT (R) AL-07 (Davis) TERRI A. SEWELL (D) vs Don Chamberlain (R) HI-01 COLLEEN HANABUSA (D) vs Charles Djou (R) AR-01 (Berry) Chad Causey (D) vs RICK CRAWFORD (R) ID-01* Walt Minnick (D) vs RAUL LABRADOR (R) AR-02 (Snyder) Joyce Elliott (D) vs Tim Griffin (R) IL-08 Melissa Bean (D) vs JOE WALSH (R) AR-03 (Boozman) David Whitaker (D) vs STEVE WOMACK (R) IL-10 (Kirk) Dan Seals (D) vs ROBERT DOLD, Jr. (R) AR Senate Blanche L. Lincoln (D) vs JOHN BOOZMAN (R) IL-11* Deborah Halvorson (D) vs ADAM KINZINGER (R) AZ-01* Ann Kirkpatrick (D) vs PAUL GOSAR (R) IL-14 Bill Foster (D) vs RANDY HULTGREN (R) AZ-03 (Shadegg) Jon Hulburd (D) vs (R) IL-17 Phil Hare (D) vs ROBERT T. SCHILLING (R) AZ-05 Harry Mitchell (D) vs DAVID SCHWEIKERT (R) IL Senate (Burris) Alexi Giannoulias (D) vs MARK STEVEN KIRK (R) CA-11 Jerry McNerney (D) vs David Harmer (R) UNDECIDED IN-03 VACANT Thomas Hayhurst (D) vs MARLIN A. STUTZMAN (R) CA-19 (Radanovich) Loraine Goodwin (D) vs JEFF DENHAM (R) IN-04 (Buyer) David Sanders (D) vs TODD ROKITA (R) CA-20 Jim Costa (D) vs Andy Vidak (R) UNDECIDED IN-08 (Ellsworth) Trent Van Haaften (D) vs LARRY BUCSHON (R) CA-33 (Watson) KAREN BASS (D) vs James Andion (R) IN-09 Baron P. Hill (D) vs TODD YOUNG (R) CO-03 John Salazar (D) vs SCOTT TIPTON (R) IN Senate (Bayh) Brad Ellsworth (D) vs DANIEL R. COATS (R) CO-04* Betsy Markey (D) vs CORY GARDNER (R) KS-01 (Moran) Alan Jika (D) vs TIM HUELSKAMP (R) CT Senate (Dodd) RICHARD BLUMENTHAL (D) vs Linda McMahon (R) KS-03 (Moore) Stephene Moore (D) vs KEVIN YODER (R) DE-AL (Castle) JOHN CARNEY (D) vs Glen Urquhart (R) KS-04 (Tiahrt) Raj Goyle (D) vs MIKE POMPEO (R) DE Senate (Kaufman) CHRISTOPHER COONS (D) vs Christine O’Donnell (R) KS Senate (Brownback) Lisa Johnson (D) vs JERRY MORAN (R) FL-02 Allen Boyd (D) vs STEVE SOUTHERLAND (R) KY Senate (Bunning) Jack Conway (D) vs RAND PAUL (R) FL-05 (Brown-Waite) Jim Piccillo (D) vs RICHARD NUGENT (R) LA-02* CEDRIC L. RICHMOND (D) vs Anh Joseph Cao (R) FL-08* Alan Grayson (D) vs DAN WEBSTER (R) LA-03 (Melancon) Jeff Landry (D) vs RAUL SANGISETTY (R) FL-12 (Putnam) Lori Edwards (D) vs DENNIS ROSS (R) MA-10 (Delahunt) WILLIAM KEATING (D) vs Jeff Perry (R) FL-17 (Meek) FREDERICA WILSON (D) vs Roderick Vereen (R) MD-01* Frank Kratovil, Jr. (D) vs ANDY HARRIS (R) FL-22 Ron Klein (D) vs ALLEN WEST (R) MI-01 (Stupak) Gary McDowell (D) vs DAN BENISHEK (R) FL-24* Suzanne Kosmas (D) vs SANDY ADAMS (R) MI-02 (Hoekstra) Fred Johnson (D) vs BILL HUIZENGA (R) FL-25 Joe Garcia (D) vs DAVID RIVERA (R) MI-03 (Ehlers) Pat Miles (D) vs JUSTIN AMASH (R) FL Senate (LeMieux) Kendrick Meek (D) vs Charlie Crist (I) vs MARCO RUBIO (R) MI-07* Mark H. Schauer (D) vs TIM WALBERG (R)

20 JANUARY 2011 | NARFE MI-13 (Kilpatrick) HANSEN CLARKE (D) vs John Hauler (R) PA-03* Kathy Dahlkemper (D) vs MIKE KELLY (R) MN-8 James Oberstar (D) vs CHIP CRAVAACK (R) PA-07 (Sestak) Bryan Lentz vs PAT MEEHAN (R) MO-04 Ike Skelton (D) vs VICKY HARTZLER (R) PA-08 Patrick Murphy (D) vs MICHAEL FITZPATRICK (R) MO-07 (Blunt) Scott Eckersley (D) vs BILLY LONG (R) PA-10 Chris Carney (D) vs THOMAS MARINO (R) MO Senate (Bond) Robin Carnahan (D) vs ROY BLUNT (R) PA-11 Paul Kanjorski (D) vs LOU BARLETTA (R) MS-01 Travis Childers (D) vs ALAN NUNNELEE (R) PA Senate (Specter) Joe Sestak (D) vs PAT TOOMEY (R) MS-04 Gene Taylor (D) vs STEVEN PALAZZO (R) RI-01 (Kennedy) DAVID CICILLINE (D) vs John Loughlin (R) NC-02 Bob Etheridge (D) vs RENEE ELLMER (R) SC-01 (Brown) Ben Frasler (D) vs TIM SCOTT (R) ND-AL Earl Pomeroy (D) vs RICK BERG (R) SC-03 (Barrett) Jane Dyer (D) vs JEFF DUNCAN (R) ND Senate (Dorgan) Tracy Potter (D) vs JOHN HOEVEN (R) SC-04 (Inglis) Paul Corden (D) vs TREY GOWDY (R) NH-01 Carol Shea Porter (D) vs FRANK GUINTA (R) SC-05 John Spratt (D) vs MICK MULVANEY (R) NH-02 (Hodes) Ann Kuster (D) vs CHARLES BASS (R) SD-AL Stephanie Herseth Sandlin (D) vs KRISTI NOEM (R) NH Senate (Gregg) Paul Hodes (D) vs KELLY AYOTTE (R) TN-03 (Wamp) John Wolfe (D) vs CHUCK FLEISCHMANN (R) NJ-03* John Adler (D) vs JON RUNYAN (R) TN-04 Lincoln Davis (D) vs SCOTT DESJARLAIS (R) NM-02* Harry Teague (D) vs STEVE PEARCE (R) TN-06 (Gordon) Brett Carter (D) vs DIANE BLACK (R) NV-03* Dina Titus (D) vs JOE HECK (R) TN-08 (Tanner) Roy Herron (D) vs STEPHEN FINCHER (R) NY-01 Tim Bishop (D) vs Randy Altshuler (R) UNDECIDED TX-17 Chet Edwards (D) vs BILL FLORES (R) NY-13* Michael McMahon (D) vs MICHAEL GRIMM (R) TX-23 Ciro Rodriguez (D) vs FRANCISCO CANSECO (R) NY-19 John Hall (D) vs NAN HAYWORTH (R) TX-27 Solomon Ortiz (D) vs BLAKE FARENTHOLD (R) NY-20* Scott Murphy (D) vs CHRIS GIBSON (R) UT Senate (Bennett) Sam Granato (D) vs MIKE LEE (R) NY-24 Michael Arcuri (D) vs RICHARD HANNA (R) VA-02* Glenn Nye (D) vs SCOTT RIGELL (R) NY-25* Dan Maffei (D) vs ANN MARIE BUERKLE (R) VA-05* Tom Perriello (D) vs ROBERT HURT (R) NY-29 VACANT Matthew Zeller (D) vs TOM REED (R) VA-09 Rick Boucher (D) vs MORGAN GRIFFITH (R) OH-01* (D) vs STEVE CHABOT (R) WA-03 (Baird) Denny Heck (D) vs JAIME HERRERA (R) OH-06 Charlie Wilson (D) vs BILL JOHNSON (R) WI-07 (Obey) Julie Lassa (D) vs SEAN DUFFY (R) OH-15* (D) vs (R) WI-08 Steven Kagen (D) vs REID RIBBLE (R) OH-16* (D) vs (R) WI Senate Russell Feingold (D) vs RON JOHNSON (R) OH-18 Zachary Space (D) vs BOB GIBBS (R) WV-01 (Mollohan) Mike Oliverio (D) vs DAVID MCKINLEY (R) OH Senate (Voinovich) Lee Fisher (D) vs ROB PORTMAN (R) WV Senate (Goodwin) JOE MANCHIN (D) vs John Raese (R) OK-05 (Fallin) Billy Coyle (D) vs JAMES LANKFORD (R)

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NARFE | JANUARY 2011 21 Legislative Report

NARFE’s LegislativeAccomplishments IN TH E 111 TH CONGRESS

 Equity for Federal Retirees in Stimulus Bill: En - • Roth Option: Adds a “Roth” option to the TSP, al - sures that federal, state and local government retirees lowing participants to make after-tax contributions to who are not eligible for Social Security will receive a one- the plan and withdraw their earnings tax-free upon time, $250 per-person refundable tax credit for the 2009 retirement. tax year. • TSP Accounts Rights for Survivors: Ensures that sur - viving spouses have the same rights over their inher -  Protection of Federal Benefits: Protects benefits by ited accounts as any other TSP participant. defeat of an amendment to the fiscal year 2010 House Budget Resolution that would have cut federal civilian  Shielding the Federal Employees Health Benefits retirement and/or health benefits by $10 billion over 10 Program (FEHBP) in the Senate’s Health Care Reform years. Bill: • Safeguards: NARFE-drafted language would safe - Enactment of Several Civil Service Improvements guard the FEHBP under a plan to have the Office in the Defense Authorization Bill: of Personnel Management manage health plans for • Re-employing Annuitants: Allows federal agencies nonfederal civilians. to re-employ federal retirees on a limited, part-time • Threatening Amendments Dropped: Proposals were basis without offset of annuity. dropped that would have required federal workers to • Federal Employees Retirement System (FERS) Sick join health exchanges and that would have opened Leave: Permits FERS workers initially to credit half, the FEHBP to nonfederal civilians without separate and in 2014 all, of their unused sick leave toward re - risk pools. tirement. • FERS Redeposit: Allows returning FERS employees,  House Approval of Medicare Part B Premium who previously left federal service, to repay a deposit Protection Bill: Protects all Medicare beneficiaries, in - to the Retirement Trust Fund, with interest, in order cluding government retirees who are not eligible to re - to be able to combine their past and new federal ceive Social Security, from paying an increase in the 2010 service for future annuity service. Medicare Part B premium. The Senate still must approve • Civil Service Retirement System (CSRS) Part-Time this legislation. Service Fix: Permits certain CSRS workers to phase down to part-time status at the end of their careers  Obama Administration Endorsement of $250 Pay - without reducing their final annuity. ment to Public-Sector Retirees: In lieu of a 2010 Social Se - • Locality Pay Equity: Provides locality pay that is curity cost-of-living adjustment, the Obama administra - creditable toward retirement for federal employees in tion supports providing a $250 payment to all older Amer - Hawaii, Alaska and the U.S. Territories. icans, including federal, state and local government • National Security Personnel System (NSPS): Ends employees who are not eligible to receive Social Security. the Department of Defense’s pay-for-performance personnel system, the NSPS, and restores employees  Defeat Attempts to Freeze Federal Worker Pay: to the federal General Schedule pay system. NARFE helped to push back three attempts in the Senate (May 27, and June 17 and 23, 2010) and one in the House Enactment of Enhancements to the Thrift Savings (May 28, 2010) to deny federal workers a modest 1.4-per - Plan (TSP): cent salary increase in 2011. • Automatic Enrollment and Immediate Contribu - tions: Provides automatic TSP enrollment of, and im -  Enactment of Expanded Telework Opportunities: mediate matching contributions for, newly hired fed - Requires executive branch agencies to establish policies eral employees. allowing eligible employees to telework. I

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NARFE’S LEGISLATIVE PROGRAM FOR

ARFE’s Legislative Program is crafted by its members at a national convention held in the year immediately preceding the beginning of each new Congress. Through a resolution procedure originating at the local chapter level, the process culminates at the national convention with the adoption of specific legislative policy Ngoals. Once approved, the goals become NARFE’s Legislative Program for the next Congress. Below is NARFE’s Legislative Program for the 112th Congress (2011-2012), adopted by delegates at the 31st Biennial National Con - vention held August 29-September 2, 2010, in Grand Rapids, MI. This Legislative Program is ordered into three categories to illustrate their priority as NARFE legislative goals. The first priority is to preserve the earned retirement benefits of annuitants and employees. The second is to provide enhanced benefits to a significant share of NARFE’s current and future membership. And the third encompasses other key positions. Legislative goals followed by an asterisk (*) require the introduction of legislation. Positions printed in italics are new to the Legislative Program for the 112th Congress. Under the NARFE Bylaws, the National President has the authority to execute Association policy, which includes the Legisla - tive Program. Under this authority, the National President makes the final legislative policy and strategy decisions based on guid - ance from the Legislative Program and counsel from the legislative director, and considers the views of the National Executive Board and leaders and members of the Association. Such counsel and views take on particular importance when, in the ab - sence of specific guidance from the Legislative Program, the National President must use judgment on what is in the best in - terest of federal workers and annuitants.

ployee pay parity as reflected in the Federal Employees Pay 1: PRESERVING EXISTING BENEFITS Comparability Act of 1990 (P.L. 102-378). ECONOMIC SECURITY: FEDERAL CIVIL SERVICE ANNUITIES HEALTH SECURITY: THE FEDERAL EMPLOYEES • NARFE shall continue efforts in strong support of cost- HEALTH BENEFITS PROGRAM (FEHBP) of-living adjustments (COLAs) for all federally administered NARFE supports protecting the nation’s most efficiently retirement programs on a regular annual schedule, com - administered and cost-effective employer-sponsored health puted on the same basis and paid at the same time, regard - insurance program, the FEHBP, for federal employees and less of age and/or income level. NARFE opposes across-the- annuitants. Toward that end: board cuts not required in all federally administered retire - • NARFE will continue to participate actively in ongoing ment programs. discussions with key Office of Personnel Management • NARFE supports, and shall continue to evaluate, a Con - (OPM) officials and staff regarding the premiums, benefits, sumer Price Index (CPI) based on the objective analysis of terms, conditions and marketing of FEHBP plans. NARFE Bureau of Labor Statistics (BLS) professionals, and opposes opposes increases in the enrollee co-payment for purchase any politically arbitrary changes in the CPI. The BLS should of prescription drugs in the FEHBP by federal annuitants establish a research program to develop an accurate who participate in Medicare; measure for retirees. NARFE shall work toward and support • NARFE supports legislation that would ensure that all changing the CPI-W to the CPI-U as the standard for de - FEHBP enrollees receive the same level of prescription drug termining the COLA. * coverage, by plan; * and • NARFE opposes any action that erodes the solvency of • NARFE supports retaining the carry-over provisions in the Civil Service Retirement and Disability Fund (CSRDF) current law for Flexible Spending Accounts (FSAs) to ensure and supports providing full public disclosure of the fiscal that FSAs are not used in conjunction with high-deductible stability and financial obligations of the fund. catastrophic health insurance to form an alternative version of a Health Savings Account. * FEDERAL EMPLOYEES PAY To protect the program, NARFE opposes: • NARFE supports full implementation of federal em - • Authorizing Health Savings Accounts, Medicare Savings

24 JANUARY 2011 | NARFE THE TH CONGRESS

icaid law that protects spouses of nursing home residents from becoming impoverished. NARFE opposes further lim - itations on, and supports easin g, asset rules that prevent se - verely disabled persons from qualifying and receiving Med - icaid long-term care benefits. * Accoun1ts, Medical Savi1ngs Accounts, and “2customer-driven,” GUARANTEEING MEDICARE FOR CURRENT “consumer-driven” or “patient-directed” plans in the FEHBP; AND FUTURE GENERATIONS • Broadening participation in the FEHBP, unless separate NARFE supports: risk pools are created; • Protecting Medicare’s guarantee of basic health security • Indexing flat payment by the U.S. government for for older Americans at affordable and predictable prices; FEHBP premiums; • Preserving the current Medicare fee-for-service pro - • Requiring federal agencies to pre-fund the govern - gram, including the ability to select the physician of your ment/employer’s share of post-retirement FEHBP premiums choice; and for their current employees; • Ensuring that the Medicare drug program does not re - • Establishing separately rated health plans for Medicare- quire beneficiaries who receive such coverage through participating retirees and survivors; and other insurance to pay additional premiums. * • Proposals that would encourage or force federal annu - NARFE opposes: itants or workers into “cost-conscious” FEHBP plans, such • Means-testing cost-sharing requirements; as managed care and “customer-driven” options. • Increasing the Medicare eligibility age; • Requiring home health care co-payments; ENSURING JOB SECURITY FOR FEDERAL • Proposals that would give private Medicare plans an un - WORKERS AFFECTED BY PRIVATIZATION fair competitive advantage over the current Medicare fee- • NARFE opposes policies on contracting out of federal for-service program and undermine the present program’s jobs that put employees at an unfair disadvantage in the ability to share health care costs over a wide community competitive process. of coverage, including the premium support demonstration • NARFE opposes proposals that would privatize govern - program; * and ment functions that do not ensure the continued federal • Schemes that limit the government portion or reduce service of current employees. its proportional share of Medicare premiums through a for - • NARFE specifically opposes contracting out the pro - mula that does not accurately reflect the updated costs of cessing and maintenance of federal personnel records. providing health care to eligible beneficiaries.

PROVIDING LONG-TERM CARE GUARANTEEING SOCIAL SECURITY FOR • NARFE shall actively participate in the ongoing devel - CURRENT AND FUTURE RETIREES opment of the federal long-term care insurance program, in - • NARFE opposes investment of the Social Security re - cluding use of the plan’s economy of scale to make pre - serves in investments other than Treasury securities. miums and underwriting requirements more reasonable • NARFE opposes replacing any portion of Social Security than similar products sold in the private market. benefits with private individual accounts. • NARFE supports the guarantee of long-term care bene - • In addition, NARFE should be guided by the following fits for individuals presently eligible for Medicaid, adequate seven Social Security principles to provide: state and federal contributions to Medicaid to finance cur - 1. A benefit people can depend on; rent and future program needs, standards of care and safety 2. Financial security for the disabled, survivors and de - that all nursing homes must follow in order to receive re - pendents (i.e., social insurance); imbursement for any patient in their care, and current Med - 3. Universal and fair coverage;

NARFE | JANUARY 2011 25 Legislative Report NARFE’S LEGISLATIVE PROGRAM FOR THE 112 TH CONGRESS

4. Deliberate redistribution of benefits to lower income • NARFE shall advocate and support legislation that per - beneficiaries; mits civilian federal employees to deposit bonuses and per - 5. Efficient administration of the program (less than formance awards in any form into the Thrift Savings Plan 1 percent overhead costs); (TSP) on a tax-deferred basis. * NARFE supports legislation 6. Benefits at no risk to the beneficiaries; and to conform the TSP regulations with Internal Revenue 7. Full cost-of-living adjustments (COLAs). Service (IRS) regulations on other qualified retirement sav - ings plans. * NARFE supports legislation to authorize the PRESERVATION OF EMPLOYER-SPONSORED Federal Retirement Thrift Investment Board to take legal ac - HEALTH INSURANCE tion to protect the interests of TSP account holders in ac - • NARFE supports enforcement of provisions in the Age cordance with its fiduciary responsibilities. * Discrimination in Employment Act to ensure that, when • NARFE supports legislation on behalf of the dimin - provided, the same level of employer-sponsored health cov - ishing number of Filipino federal annuitants to provide for erage be given to all retirees regardless of age. increased and adequate compensation for services rendered to the government of the United States. * 2: ENHANCING EXISTING BENEFITS • NARFE supports legislation to prevent the erosion of de - ferred federal annuitant retirement benefits. * MAKING HEALTH CARE MORE AFFORDABLE • NARFE supports legislation to correct the calculation of • The Association shall actively participate in efforts by annuities of federal employees and retirees who work part- the administration and Congress to contain FEHBP costs, time in the final years of their careers, and whose annuities including the development and implementation of initia - are reduced as a result of the interpretation of federal deficit tives to rein in skyrocketing prescription drug expenses, par - law [Section 15204 of the Consolidated Omnibus Budget ticularly the use of the federal supply schedule by FEHBP Reconciliation Act of 1986 (COBRA) (P.L. 99-272)]. * plans to purchase prescription drugs on behalf of enrollees. • NARFE supports legislation that would allow the recal - • The Association will educate its members on the effect culation of retirement annuities for federal employees who of adding to or changing coverage, and the costs and ben - have retired since 1994 and who worked in Hawaii, Alaska efits of requiring such benefit changes. or the U.S. Territories, provided they pay contributions to the • NARFE opposes the Office of Personnel Management’s Civil Service Retirement and Disability Fund and the income decision to forgo the Medicare employer subsidy to which the taxes that they would have paid had locality pay been avail - FEHBP is entitled since plans provide annuitants age 65 and able to them prior to their retirement. * older with drug coverage that is greater in value than the Medicare Part D prescription drug program and will actively ENHANCING LONG-TERM CARE pursue the subsidy for the purpose of offsetting FEHBP pre - • NARFE supports proposals to develop and coordinate a miums charged to the government/employer and all enrollees. comprehensive long-term care policy that would include public and private initiatives that address financing, choices ENSURING FAIR SOCIAL SECURITY BENEFITS and quality service. FOR GOVERNMENT RETIREES • The Association supports tax relief for the purchase of • NARFE supports the repeal or reform of the Social Se - long-term care insurance, family caregiving and other long- curity Government Pension Offset (GPO) and the Windfall term care expenses. * NARFE supports proposals that would Elimination Provision (WEP). * help individuals who cannot afford long-term care insurance • NARFE supports legislation that would require the So - or have an immediate or likely need for long-term care to re - cial Security Administration to report annually the amount ceive such services without impoverishing themselves. * of the WEP penalty to affected individuals. * • NARFE supports nursing home reform, including efforts to ensure that long-term care facilities are adequately staffed 3: ADDITIONAL PRIORITIES with experienced professionals in the medical disciplines of gerontology and nursing, and that such individuals continue PERFECTING FEDERAL RETIREMENT to receive training and are adequately compensated. * • NARFE supports legislation to provide retiring federal employees the option of electing and paying the actuarial IMPROVING THE FEDERAL EMPLOYEES cost of additional survivor annuity amounts in 5-percent in - HEALTH BENEFITS PROGRAM crements, up to 75 percent of an unreduced annuity. * • NARFE will encourage the Office of Personnel Man -

26 JANUARY 2011 | NARFE NARFE’S LEGISLATIVE PROGRAM FOR THE 112 TH CONGRESS agement to increase the number of health care providers couraging reimportation; and * who are board certified in, or have training in, geriatrics in • Speed the approval of less expensive generic drugs. * FEHBP plans. • NARFE supports compliance with current law that di - rects the Food and Drug Administration (FDA) to approve PROVIDING TAX RELIEF FOR HEALTH new drugs through evidence-based evaluation. CARE EXPENSES • NARFE supports legislation to amend Section 125 of the PROVIDING COMPREHENSIVE PATIENT tax code to allow federal retirees and survivors, and all other PROTECTIONS retirees, to pay: • NARFE supports legislation that would provide com - 1. Their share of the FEHBP and other employer-spon - prehensive patient protections to consumers enrolled in sored health insurance premiums with pre-tax annuities; * health plans regulated by federal and state law, and would and also allow such individuals to sue their plans for wrongful 2. Health care costs not covered by traditional health in - denials of care. * surance and child and adult dependent care with pre-tax annuities deposited by annuitants in “Flexible Spending Ac - SECURING UNIVERSAL ACCESS TO counts” (FSAs). COMPREHENSIVE HEALTH CARE • NARFE supports access to comprehensive health care ENSURING THE LONG-TERM VIABILITY for all Americans. * OF THE POSTAL SERVICE • NARFE supports legislation to allow the Office of Per - PREVENTING MEDICAL ERRORS sonnel Management to make payments for any refund due • NARFE supports legislation that would create a system to the United States Postal Service (USPS) from the Civil Service to monitor, analyze and prevent medical errors. * Retirement and Disability Fund (CSRDF), on the condition that such payments would not result in the reduction of fed - ESTABLISHING TAX EQUITY eral annuities paid to retirees and survivors. * • NARFE supports legislation to provide equitable tax treatment of government retirement benefits comparable IMPROVING MEDICARE with Social Security. * NARFE supports efforts to: • NARFE supports indexing the income threshold on tax - • Repeal means-testing of Medicare premiums; * able Social Security benefits. * • Reduce the penalty imposed on those who do not en - roll in Medicare Part B at the time they become eligible; * SUPPORTING COMMUNITY SERVICES FOR • Enhance Medicare prescription drug coverage, in - OLDER AMERICANS cluding authority for the federal government to negotiate • NARFE supports the reauthorization of, and adequate drug prices for the entire program; simplify and stabilize annual appropriations for, the Older Americans Act to en - coverage; and provide equal coverage throughout the sure the continuation and enhancement of community United States and its territories; * and services for senior citizens of all income levels. * • Place a greater emphasis on gerontological studies and training in medical education programs financed by IMPROVING RESPONSE PLANS FOR OLDER Medicare. AMERICANS • NARFE supports the development of a coordinated fed - CONTROLLING PRESCRIPTION DRUG COSTS eral, state and local emergency response plan for seniors in NARFE supports legislation to: the event of public health emergencies or natural disasters. * • Allow pharmacies to buy prescription drugs from phar - maceutical manufacturers for Medicare beneficiaries at the DC DELEGATE VOTING RIGHTS same average discount available in industrialized countries; * • NARFE supports legislation that would grant statehood to • Permit drugs made in the United States or other industrial - the District of Columbia. * ized countries, and exported to third-party industrialized coun - • NARFE supports legislation and other changes necessary tries, to be reimported, or imported, to the United States; * to extend to the delegate from the District of Columbia the • Prevent pharmaceutical manufacturers from limiting same right to vote on the floor of the U.S. House of Represen - the sale of drugs to other countries for the purpose of dis - tatives as is afforded to all other members of Congress. * I

NARFE | JANUARY 2011 27 By Dan Adcock, Legislative Director

Congressional Leaders Vow to Consider Spending-Cut Proposals

ederal workers and retirees can expect unprecedented assaults on their pay and benefits as Congress considers spending cuts proposed by the co-chairmen of the National Commission on Fiscal Responsibility and Reform. The 18-member bi - partisan commission was created by President Obama in early 2010 to come up Fwith proposals to balance the federal budget and reduce the country’s debt.

On November 10, the panel’s bipartisan co- process in 2011, the major tax-code changes, dramatic chairmen – former Clinton White House Chief of changes to Social Security and spending reductions Staff Erskine Bowles and former Wyoming Repub - proposed by the co-chairmen. lican Senator Alan K. Simpson – released a prelimi - Under an agreement reached in February 2010, nary 50-page draft report. On December 1, the date outgoing House Speaker Nancy Pelosi, D-CA, and on which the panel was supposed to take a vote on Senate Majority Leader Harry Reid, D-NV, had said the proposal, the chairmen issued a second draft re - that the Senate and House would immediately con - port and delayed the vote so that commission mem - sider the report as legislation without amendments bers could consider the new plan. if 14 of the 18 commission members voted to approve As the commission finished its work, congressional it. Absent the 14 votes, Pelosi and Reid were not obli - leaders vowed to consider, as part of the budget gated to take up the commission’s recommendations.

28 JANUARY 2011 | NARFE IMPACT ON FEDERAL 2015. Discretionary spending refers to RETIREMENT spending set by annual appropriations, NARFE was deeply troubled by a which fund the day-to-day operation of proposal in the co-chairs’ final report to government. The proposal included a create a “federal work force entitlement three-year pay freeze and a 10-percent task force” to make recommendations Alan K. Simpson Erskine Bowles cut in the size of the federal work force. to Congress to cut federal civilian and Freezing or cutting pay sends the military retirement benefits by $70 bil - gram (FEHBP) premium by limiting the wrong signal at a time when federal lion over 10 years. The report cited the growth of the government/employer agencies will be hard-pressed to recruit options the task force should consider, share to Gross Domestic Product (GDP) and retain the most competent workers including: plus 1 percent. Increases in FEHBP pre - needed to make government operate • Calculate federal civilian retire - miums have outpaced the percentage more efficiently, prevent the next ter - ment annuities on the highest five years increase in the GDP plus 1 percent. rorist attacks, fight two wars, cure dis - of salary rather than the highest three That means that the share enrollees pay eases, provide assistance to unem - years under current and longstanding would grow from an average of 30 per - ployed and disabled Americans, and law. According to the Congressional cent, under current law, to about 40 per - treat wounded soldiers and veterans. Budget Office, this plan would reduce a cent in 2015 and 58 percent by 2020, Cutting the federal work force by 10 Civil Service Retirement System (CSRS) according to a preliminary estimate. percent is more about politics than annuity by an average of $1,424 in 2010 Over five years, more than $3,500 in good human resource management. In and would reduce the average annui - premium costs would be shifted to fed - fact, 60 percent of all federal workers tant’s retirement benefit by $7,148 over eral annuitants and employees. will be eligible to retire in the next five five years. A Federal Employees Retire - The report’s proposal to use the so- years. Experts agree that the federal gov - ment System (FERS) annuity would be called “Chained” Consumer Price Index ernment can ill afford to lose its most cut by an average of $462 in 2010 and for All Urban Consumers (C-CPI-U) to talented and experienced employees at by $2,322 over five years. set COLAs for Social Security (and other a time when the country is facing un - • Require workers to contribute a indexed benefits) has been estimated precedented crises. Indeed, Paul C. much higher share of their salary to - by the Congressional Budget Office to Light, New York University Wagner's ward their defined-benefit annuity, lower Social Security benefits by 3 per - Paulette Goddard Professor of Public which would have the effect of a sig - cent after a 10-year period and would Service, said in November that the co- nificant pay cut. The additional contri - likely result in a similar reduction to chairs’ government-cutting proposal is bution would not result in any change federal civilian and military retirement “… a random shooting that will further in a retirement annuity. While employees COLAs. Rather than adjust the COLA eviscerate the front lines of government, currently make contributions from their to reflect the disproportionately higher where the goods and services are actu - salary to the Civil Service Retirement health care costs paid by older Ameri - ally delivered, and that will fuel further and Disability Fund, historically most cans, the co-chairs’ proposal to use the growth in the contracting work force.” medium and large private-sector em - C-CPI-U would further erode federal ployers have not required their workers annuitant inflation protection. NARFE RESPONDS to make any contributions toward their In November, NARFE Headquarters defined-benefit pensions. CUTTING THE WORK FORCE took extraordinary measures to alert • Defer CSRS cost-of-living adjust - AND FREEZING PAY members about the threat posed to ments (COLAs) until age 62. Instead, Deficit-reduction measures pro - their benefits by the Fiscal Commission CSRS annuitants would be offered a posed by Chairmen Bowles and chairmen’s proposed plan. First, the As - one-time, catch-up inflation adjustment Simpson were not limited to federal re - sociation sent an Action Alert through at age 62 to increase the benefit to the tirement and health benefits. Active fed - its GEMS e-mail messaging system to all amount that would have been payable eral employees were also singled out for NARFE members who have provided had full COLAs been in effect. budget cuts, and would be particularly an e-mail address to NARFE. Then, it In addition, the report would require impacted by a recommendation to sent automated phone calls to NARFE federal workers and annuitants to pay enact strict discretionary spending caps members for whom phone numbers, an increasingly higher share of the Fed - and provide $200 billion in domestic rather than e-mail addresses, were on eral Employees Health Benefits Pro - and defense discretionary savings by file. The messages asked members to

NARFE | JANUARY 2011 29 use a toll-free phone number to contact urging them to reconsider their pro - them the most. While upper income re - their representative and senators to op - posals to cut federal civilian retirement cipients would have their future pay - pose the Fiscal Commission plan. and health benefits, freeze federal pay ments reduced the most, the formula “The proposals in the co-chairs’ final and reduce the federal work force by 10 change would cut the benefits of all fu - report to cut federal employment and percent. ture recipients. In addition, under the compensation will outlive the Fiscal “In light of the growing number of plan, the retirement age for Social Secu - Commission and will be treated seri - critical challenges being shouldered by rity eligibility would be increased, based ously by the new Congress,” said federal workers, the government cannot on the average American’s greater NARFE President Joseph A. Beaudoin. afford to make substantial reductions to longevity, increasing the age to 68 by “It will be up to all of us to remain vigi - the earned compensation of individuals 2050 and 69 in 2075. lant about these threats to our earned who have dedicated their careers to In 2009, earnings up to $106,800 an - wages, retirement and health benefits.” public service,” the groups said. “For nually are subject to Social Security pay - For that reason, Beaudoin encouraged that reason, we urge you to defend the roll taxes. Currently, the maximum limit NARFE members to receive the weekly integrity of a system that provides on taxable salary income applies to less NARFE Legislative Hotline by including wages, health and retirement benefits than 86 percent of national earnings – their e-mail address in their member - compensation to 4.6 million federal with the highest wage-earners avoiding ship record. The Hotline also is available workers and annuitants.” the lion’s share of payroll taxes. The co- on the NARFE Web site, www.narfe.org, chairs’ suggested plan would gradually or by calling toll-free 877-217-8234. OTHER KEY PROPOSALS increase the maximum taxable salary to In addition, NARFE gathered support The chairmen’s draft plan proposed cover 90 percent of wages by 2050. from 15 member organizations of the to make the “benefit formula” for Social Bowles and Simpson suggested that federal-postal coalition to sign a joint Security more progressive, meaning the Medicare “doc fix” be paid for by letter sent to Bowles and Simpson, benefits would target those who need spending reductions or revenue in - creases. Their report suggested that such “fixes” be less generous to health care providers. The “doc fix” refers to periodic sched - uled reductions in the growth of pay - ment to health care providers under Medicare. These scheduled reductions were put into the Medicare law before the Medicare reforms made in the health care reform legislation enacted in 2010. Physicians have threatened to stop taking new Medicare patients if the scheduled reimbursement cuts go into effect. Consequently, Congress typically addresses this issue on an annual basis at the last moment, subjecting Medicare beneficiaries and providers to a fraught- filled cliffhanger process. For instance, in November, during the lame-duck session of the 111th Congress, the Senate and House passed a one-month extension of the current Medicare physician payment rates in an effort to avert a 23-percent cut that had been scheduled to take effect December 1. Legislative Counsel Alan Lopatin contributed to this article.

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t their first meeting after being elected, members Meeting at NARFE Headquarters were, from left to right: Lanny G. Ross, Region IX vp; of the National Executive Board toured NARFE Betty Lucero-Turner, Region VII vp; Ronald P. Bowers, Region II vp; Paul E. Johnson, Headquarters, got acquainted with their new du - Region IV vp; Richard G. Thissen, Region V vp; Charles W. Saylor, National Treasurer; ties and moved through an extensive agenda. Joseph A. Beaudoin, National President; Paul H. Carew, National Vice President; Elaine A Hughes, National Secretary; William F. They also had the opportunity to formulate strategy for a grass-roots Martin, Region X vp; Gilbert W. Blaisdell, membership response to a legislative threat. The Board met November Region 1 vp; Jerome S. Smith, Region VI vp; Helen L. Zajac, Region VIII vp; and Donald 16-18 in Alexandria, VA, just days after the co-chairs of the National Stewart, Region III vp.

Commission on Fiscal Responsibility contact their members of Congress and can be called upon to act quickly, if and Reform – the so-called “Fiscal ask them to oppose the proposal. Then needed, to fend off legislative attacks. Commission” – released a debt-reduc - NARFE used “robocalls” – automated Among other actions, the Board ap - tion report that has wide-ranging neg - phone calls – to contact the 170,000 proved the Association’s 2011 budget ative implications for the federal work members for whom it has phone num - and endorsed creation of a NARFE In - force and federal retirees (see story, p. bers but not e-mail addresses. formation Technology Advisory Com - 28). Consequently, the Board spent In a special early-morning session mittee. much of the meeting talking about on the last day of their meeting, Board The Board also reviewed the 2011- ways to mobilize NARFE members to members discussed additional ways to 2012 membership strategic action defend their benefits. inform NARFE members and other plan. The plan will be further discussed During the three-day meeting, Dan federal employees and retirees about at the next Board meeting, which will Adcock, legislative director, briefed the the threats and to organize them for be held March 2-4 in conjunction with Board on the Fiscal Commission pro - quick response. Regional vice presi - the NARFE Legislative Training Con - posal and NARFE’s response. dents left with plans to work in their re - ference in Arlington, VA. Adcock reported that using the gions to get more members to provide Photos of individual members of NARFE e-mail messaging system, their e-mail addresses to NARFE Head - the Board and their regions are on GEMS, the Association had alerted the quarters and to update chapter calling pages 34-35. Minutes of the meeting 55,000 NARFE members for whom it trees to ensure that those members will be posted on the NARFE Web site, has e-mail addresses, asking them to who do not provide e-mail addresses www. narfe.org.

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REGION IX REGIONAL VP Lanny G. Ross Alaska, Idaho, Montana, Oregon and Washington

REGION VIII REGION VII REGIONAL VP REGIONAL VP Helen L. Zajac Betty Lucero-Turner California, Guam, Arizona, Colorado, New Hawaii, Nevada and Mexico, Utah and Republic of the Wyoming Philippines

34 JANUARY 2011 | NARFE NARFE’s NATIONAL EXECUTIVE BOARD REGION I REGIONAL VP Gilbert W. Blaisdell Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont

REGION II REGION IV REGIONAL VP REGIONAL VP Ronald P. Bowers Paul E. Johnson Delaware, District of Columbia, Illinois, Indiana, Maryland, New Jersey and Michigan, Ohio and Pennsylvania REGION V Wisconsin REGIONAL VP Richard G. Thissen Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota REGION X REGIONAL VP William F. Martin Kentucky, North Carolina, Tennessee, Virginia and West Virginia

REGION III REGION VI REGIONAL VP REGIONAL VP Donald W. Stewart Jerome S. Smith Alabama, Florida, Georgia, Arkansas, Louisiana, Mississippi, Puerto Rico, South Oklahoma, Republic of Carolina and Virgin Islands Panama and Texas

NARFE | JANUARY 2011 35 Managing Money Inherited IRAs By Mark A. Keen, CFP ® beneficiary, rather than treating the surviving spouse can use his or her IRA as his or her own. own age and life expectancy for f planning is done correctly, The spousal rollover is typically the starting the required minimum distri - your beneficiaries can leverage best option for the surviving spouse and butions from the IRA. In the case of a the tax-deferred benefits of your can be accomplished by one of two younger spousal beneficiary, this can Itraditional individual retirement ways. First, the rollover involves with - mean a longer period for tax deferral of account (IRA) for many years to come. drawing the balance from the the IRA. Unfortunately, the Internal Revenue deceased spouse’s IRA and • With a spousal rollover, the Service (IRS) rules for beneficiaries are depositing the funds surviving spouse can use the complex. One mistake could lead to into his or her own IRS unified lifetime table, excessive penalties or, worse, perma - IRA within 60 days. based on joint life ex - nent loss of the IRA’s tax-deferred The second option pectancies, rather than the status. If you want your family to get is the direct single lifetime table used the maximum benefit from your IRA, “trustee-to-trustee” for nonspousal benefici - it’s important that you and your bene - transfer, which is ac - aries and spouses re - ficiaries understand the rules of the complished maining as beneficiary game. While there are many nuances, when the of an IRA. The joint here are a few important things you funds go di - table provides and your beneficiaries should know. rectly from for a slower First, it’s important to understand the deceased ONE MISTAKE payout of re - that there is a distinction among sev - spouse’s IRA to the spouse’s could lead to quired min - eral different categories of beneficiaries, IRA – without the spouse imum distribu - and they are often subject to different possessing the funds in be - excessive penalties tions – effec - rules. For example, there are designated tween. tively extending beneficiaries and nondesignated bene - In either case, the spouse or, worse, perma - the benefits of ficiaries. Designated beneficiaries are is now the owner of the nent loss of the IRA’s tax-deferred real, live human beings, whereas non - IRA, and, in the eyes of the growth. designated beneficiaries include your IRS, will be treated as if he tax-deferred status. • A spousal estate, charities and other nonliving en - or she has always been the rollover allows a tities. There also is a distinction be - owner. In other words, the surviving surviving spouse to name primary and tween spouse and nonspouse benefici - spouse will be subject to all of the contingent beneficiaries to the IRA. aries. We’ll discuss the spousal benefi - same rules and deadlines as any other Naming beneficiaries for the spousal ciary this month and cover nonspouse IRA owner. For example, the spouse IRA can provide these beneficiaries beneficiaries next month. would be subject to the 10-percent with the option of using their own life A spouse has ultimate flexibility early withdrawal penalty that gener - expectancies for drawing down the when it comes to an inherited IRA, and ally applies to any distribution before IRA once they inherit it. When a he or she generally has the following an IRA account owner attains age 59- spouse remains as beneficiary, the three options: 1/2. Furthermore, the spouse would spouse can still name his or her own 1. Treat it as his or her own by per - be subject to the same required min - beneficiary(ies), but there are circum - forming a spousal rollover into his or imum distribution rules as any other stances when the beneficiaries will her own traditional IRA; IRA owner. have to follow less generous required 2. Treat it as his or her own IRA by That said, there are a number of minimum distribution options. designating himself or herself as the clear advantages to a spousal rollover There are times, however, when it is account owner; or of an IRA: beneficial for the spouse to remain as 3. Treat himself or herself as the • By using a spousal rollover, the beneficiary rather than become the

36 JANUARY 2011 | NARFE owner of the IRA. For example, the 10- age, it provides the spouse the ability This column has covered a few of percent early withdrawal penalty does to delay any required minimum distri - the rules for spousal beneficiaries, but not apply to IRA beneficiaries – only to butions until the IRA owner would there are many other rules and nu - owners. So, if the spouse is younger have reached age 70-1/2. For example, ances that you should be aware of to than age 59-1/2 when he or she in - if spouse A dies at age 60 and leaves maximize the benefits of an inherited herits the IRA and needs cash from the his IRA to his 71-year-old wife, she IRA. As previously mentioned, spouse IRA to live on, he or she will be better can opt to remain as beneficiary and and nonspouse beneficiaries have to off remaining as beneficiary to avoid delay the required minimum distribu - play by different rules. Next month’s the pre-age 59-1/2 distribution penalty. tions for another 10 years until the de - column covers nonspouse beneficiary If the spouse chooses to remain as ceased spouse would have turned age rules. beneficiary, then he or she would be 70-1/2. Furthermore, if the spouse required to begin taking minimum dis - does elect to remain as beneficiary, he Mark A. Keen, CFP ®, is president and tributions by the later of December 31 or she can perform a spousal rollover owner of Bennett Financial Advisors in of the year the IRA owner would have to become the owner at any time. On Fairfax, VA, and an investment adviser turned age 70-1/2 or December 31 of the other hand, if the wife became the representative and registered repre - the year following the IRA owner’s owner of the IRA, she would have to sentative of The Strategic Financial death. begin taking her required minimum Alliance, Inc. (SFA). Securities and This is interesting because, in the distributions by December 31 of the advisory services are offered through case where the IRA owner is younger year following the year of spouse A’s SFA. E-mail: mkeen@tributaryadvisors. than the spouse and dies at an early death. com.

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NARFE | JANUARY 2011 37 Live Well An Update on Shingles By Marilyn S. Radke, M.D. continues to experience severe pain there are anti-viral medications avail - (post-herpetic neuralgia) for months or able to reduce its effects: acyclovir hingles (herpes zoster) is a years after the rash disappears. (Zovirax), valcyclovir (Valtrex) and painful skin rash caused by Anyone who has had chicken pox famciclovir (Famvir). When used as varicella zoster virus, the can develop shingles. It is most soon as possible after the rash ap - Ssame virus that causes common in people over age 50, and the pears, these medications can help chicken pox. After an attack of risk increases with age. Shingles also is shorten how long the illness lasts and chicken pox, some of the virus parti - more common in people who have how severe it is, and may help to pre - cles move from weakened immune systems from: vent post-herpetic neuralgia. Post- the skin blisters • Chemotherapy; herpetic neuralgia also is treated with into the nervous • Radiation treatment; steroids, anti-depressants, anti-con - system and lie • Steroids and medications used vulsants and topical agents. dormant in the nerve tissue. If the virus reactivates, ZOSTAVAX IS a vaccine used to it travels along the nerve fibers to the prevent shingles in people age skin and causes 60 and older who have had the painful blis - ters that characterize shingles. chicken pox. It can reduce the The first sign of shingles is often burning or tingling pain, numbness risk of shingles by half. or itching in one particular area on only one side of the face or body. The after organ transplant operations; Zostavax is a vaccine used to pre - most common location for shingles is • Human immunodeficiency virus vent shingles in people age 60 and a band, called a dermatome, across (HIV) infection; and older who have had chicken pox. The one side of the trunk around the • Stress. vaccine can reduce the risk of shin - waistline. A person with shingles blisters can gles by half and the risk of post-her - After several days or a week, a rash pass the virus to someone who has petic neuralgia by two-thirds. Protec - of fluid-filled blisters, similar to never had chicken pox, but the person chicken pox, appears in the area. will develop chicken pox, not shingles. Other symptoms may include fever, Shingles comes from the virus lying headache, chills and upset stomach. dormant inside the person’s body, not To Learn More After three to five days, the blisters from an outside source. The virus is or more information, write to crust over, and the rash usually dis - spread by direct contact with the rash Fthe NIH Neurological Insti - appears in two to four weeks. in the blister phase and is not spread tute, P.O. Box 5801, Bethesda, MD Approximately two in 10 people through sneezing, coughing or casual 20824; or call 800-352-9424 (TTY: develop shingles in their lifetime. contact. A person cannot spread the 301-468-5981); or visit the Web Usually, a person has only one virus before blisters appear or after the site at www.ninds.nih.gov/disorders/ episode of shingles, but a second or blisters develop crusts. To reduce the shingles.You also can contact the third episode can occur. risk of spreading the virus, people with Centers for Disease Control Infor - Rarely, shingles can lead to pneu - shingles should keep the rash covered, mation Center at 800-232-4636 monia, hearing problems, blindness, not touch or scratch the rash, and (TTY: 888-232-6348); or visit the brain inflammation (encephalitis) or wash their hands often. Web site at www.cdc.gov/vaccines. death. Approximately one in five people There is no cure for shingles, but

38 JANUARY 2011 | NARFE E 5 “New medical alarm can E 3 R T $ F F t I a G d e save you money lu va tion lasts at least six years. Zostavax …and save your life!” does not treat shingles or post-her - petic neuralgia once it develops. The Designed For Seniors® Medical Alarm provides emergency People who have had shingles can re - notification that is simple, reliable and affordable. ceive Zostavax to help prevent future It’s simply the best value on the market today. attacks of shingles. It’s reliable. The vaccine contains live, weak - Are you From the ened (attenuated) varicella zoster concerned “Good morning. This is waterproof pendant to the virus. Common side effects from about being Nancy with Medical Alarm. sophisticated base unit to Zostavax include headache and red - helpless in an Do you need assistance the state-of-the-art 24/7 call ness, soreness, and swelling or itching emergency? Mrs. Smith?” center, the entire system is at the injection site. Are you and designed to give you the your loved ones peace of mind in People who have any of the fol - anxious about what knowing you are lowing conditions should not be in - would happen if you never alone in oculated with Zostavax: were unable to get an emergency. • Allergy to gelatin, neomycin or to a phone? Have You get two-way any component of the vaccine; you considered communication • A history of weakened immune moving out of with a live person system from leukemia, lymphoma or the home you in our Emergency other cancer of the bone marrow or love and into some Response Center, and kind of assisted living there’s a battery backup lymphatic system; because of these worries? If in case of a power failure. • HIV/AIDS with T-cell counts you answered “yes” to any of these Best of all, it’s affordable. below 200; questions, you are not alone. Millions You • Treatment that weakens the im - of seniors are concerned about their get the complete system for only mune system, including high-dose safety. There are products out there pennies per day. No equipment corticosteroids; that claim to help, but they are diffi- charge, no activation fee, no long • Active, untreated tuberculosis; cult to use and even more difficult to term contract. Call now and within and afford. Why mess with complicated a week you or someone you love installations and long term contracts will have the peace of mind and • Pregnancy. when there’s a product that’s simple, independence that comes with this All Medicare Part D plans cover reliableDesigned and affordable? For Seniors The® product remarkable system. Zostavax. However, the amount you is the Medical pay for the vaccination (cost-sharing) Alarm, read on and we’ll explain Be one of the first 100 to order varies. Medicare Part B does not cover why every senior in America should and get FREE Shipping and a Zostavax. Contact your insurer (or have one. What will you do in case of Designed FREE Gift– valued at $35. Medicaid, if applicable) to find out if Foran emergency? Seniors® If you have Medical Alarm, all you It’s yours to keep. your plan covers Zostavax. do is push a button, and you’ll Designed For Seniors® If you have had shingles, or if you immediately get the help you need, are age 60 or older, ask your doctor quickly and reliably. That’s because it MedicalAlarm about Zostavax. has been “designed for seniors” by Please mention promotional code If you develop a painful rash, see the industry leader in providing 41540. your doctor for evaluation. Your helpful and affordable solutions for doctor can determine whether you millions of aging Americans. 1-877-498-1451 www.DFSmedicalalarm.com have shingles, and provide you with First of all, it’s simple to install treatment and vaccination, as needed. and use. Unlike other products that require professional installa- Marilyn S. Radke, M.D., is board cer -

tion, this product is “plug and 8 8 7 tified in preventive medicine and play.” The unit is designed for easy 6 5 practices in Atlanta, GA. use in an emergency, with large, Copyright © 200 by firstSTREET for Boomers and Beyond, Inc. All rights reserved. easy-to-identify buttons. NARFE | JANUARY 2011 39 Questions & Answers

receive complete details about the ac - tirement. He elected survivor’s bene - NOTE : The following Questions & count. fits for me. In a recent “Questions & Answers were compiled by Retire - If you have Option C, which covers Answers” column, you stated that the ment Benefits Service Department your family member, you would have spouse must be covered under a staff. These are real questions to apply for the benefits upon the family health insurance plan upon the received by the Department and death of your spouse or child. Then, retiree’s death and have a survivor’s real answers, based on the you would receive a check for any Op - benefit in order to continue health in - members’ personal circumstances. tion C benefits that might be payable. surance. Does this mean that I will lose The answers are not universal and my health insurance when he dies? may include information that is DUPLICATE 1099-R Response: Since you are both federal re - relevant to the correspondent’s QUESTION: Is it possible to obtain a tirees with health insurance, you are duplicate 1099-R? covered under an exception to the gen - particular situation. NARFE does not Response: Yes, but please wait long eral rule. You will be able to continue provide legal advice or assistance, enough to receive your 1099-R for your health insurance after his death does not provide financial planning 2010. The Office of Personnel Man - because you met the requirements to advice or assistance, and does not agement (OPM) assumes it has a valid carry your health insurance into retire - provide tax advice or assistance. For mailing address and normally distrib - ment based upon your own work legal, financial planning or tax utes the annuitant and survivor’s an - record. Since you are both federal re - advice/assistance, NARFE recom - nuity 1099-Rs by the end of January. tirees with health insurance, you are mends members contact an You may request a duplicate if you lose not required to be covered under his in - attorney, financial planner or certi - the one mailed to you. If you have surance when he dies in order to keep fied public accountant/tax adviser. your CSA or CSF retirement claim your insurance. number, you can contact OPM at 888- 767-6738 and request a duplicate WORKERS ’ C OMP RETIREES 1099-R. You also can go to the OPM QUESTION: I am age 53 and receive Web site at www.servicesonline. workers’ compensation from the De - FEGLI opm.gov/ and use your OPM-provided partment of Labor. I also applied for QUESTION: How are benefits paid personal identification number (PIN) Social Security disability benefits. If my out under Federal Employees’ Group to view, print and request Social Security disability is approved, Life Insurance (FEGLI)? a duplicate 1099-R for will my worker’s compensation pay - Response: Your beneficiary(ies) or the current tax year ment be reduced? other eligible individuals would re - and two previous Response: Your workers’ ceive a check for death benefits if the years. compensation benefits payment is less than $7,500. For pay - If your address will remain the same, ments of $7,500 or more, the Office of isn’t up-to-date, you but your Social Secu - Federal Employees’ Group Life Insur - need to call 888-767-6Q738 & rity benefit may be ance (OFEGLI) would open a money to change your mailing address reduced. Here is market account automatically in the and then request a duplicate how it works. name of the payee(s) and would mail a 1099-R. You also may contact AYour monthly Social Security dis - checkbook to the payee(s). The OPM and request a PIN. If you are still ability benefits, including benefits payee(s) could close the account im - in interim pay status, you do not re - payable to your family members, are mediately or write checks at any time ceive your PIN until your case is com - added together with your workers’ for any amount, from $250 up to the plete. compensation or other public disability entire balance in the account. There payment. If the total amount of these would be no charge for checks, and CONTINUATION OF COVERAGE benefits exceeds 80 percent of your av - the account balance would earn in - QUESTION: My husband and I are erage current earnings, the excess terest from the day it is opened. At the both retired, and we each carried a amount is deducted from your Social time of payment, the payee(s) would self-only health insurance plan into re - Security benefit.

40 JANUARY 2011 | NARFE Example: Before you became dis - a letter outlining the consequences of sonnel Management (OPM) at 888-767- abled, your average current earnings voluntary termination and of your right 6738 or write to the Office of Personnel were $4,000 a month. You, your to withdraw the termination request be - Management, Retirement Operations spouse and your two children would fore coverage ends. Center, P.O. Box 45, Boyers, PA 16017- be eligible to receive a total of $2,200 a Termination of Part B would be ef - 0045. You would need to provide the month in Social Security disability ben - fective at the end of the month fol - full name of the retiree, the retirement efits. However, you also receive $2,000 lowing the month that you file the ter - claim (CSA) number and date of birth. a month from workers’ compensation. mination request. For an interview, call OPM would mail instructions, along Because the total amount of benefits 800-772-1213 or contact your local So - with “Representative Payee” form RI you would receive ($4,200) is more cial Security office. 20-7, to the individual who would than 80 percent of your average cur - serve as your representative. OPM rent earnings ($3,200), your family’s So - INCAPACITATION does not accept a power of attorney. cial Security benefits would be re - QUESTION: What happens if I am duced by $1,000. Your Social Security unable to manage my own affairs? ACTIVE benefit would be reduced until the Response: If you are ever unable to take month you reach age 65 or the month care of your own financial affairs, no EMPLOYEES your other benefits stop, whichever one else can sign, cash or deposit your comes first. annuity check. In the event of your in - HEALTH PREMIUMS CHANGE ? capacitation, a family member or other QUESTION: Do my health insurance TERMINATE PART B individual should call the Office of Per - premiums change after I’m retired? QUESTION: I no longer need Medicare Part B because I am covered by other insurance. How do I termi - nate Part B enrollment? Response: If you want to terminate RELIEF FOR DRY HANDS your enrollment in Medicare Part B, you need to contact the Social Security THAT CRACK & SPLIT Administration for assistance. You $EVROXWHO\ 2GRUOHVV u 1RQ*UHDV\ would need to submit a signed request for termination on form CMS-1763. This form is not available online. Ter - mination is a serious decision. If you might want to re-enroll later, you may have to pay a surcharge. Your monthly premium increases 10 percent for each 12-month period you were eligible for, but did not carry, Medicare Part B. The Centers for Medicare & Medi - caid Services (CMS) requires that, when feasible, a personal interview be con - ducted with anyone who wants to ter - minate entitlement. You would need to fill out the form in person, or a CMS rep - resentative would complete it over the %X\ WRGD\ RU ILQG D VWRUH QHDU \RX phone to ensure that you understand ZZZ2.HHIIHV&RPSDQ\FRP the consequences of termination. After $OVR DYDLODEOH 1-800-275-2718 © 2010 The O’Keeffe’s Company for your feet. the interview, a Social Security Admin - istration representative would give you

NARFE | JANUARY 2011 41 N Questions & Answers

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. Call NARFE toll-free at 800-456-8410 for the nearest service officer. NARFE Service Centers are also available in some areas. Use the Service Center listings on the NARFE Web site, www.narfe.org.

Response: As a federal retiree, you pay will go directly to OPM. You can place the same premiums and receive the money in the account whenever you We are 5 Stars Above same benefits as an active federal em - choose, as long as you send OPM a the Rest and here are ployee; but, as a retiree, your premiums check for at least $25. The account al - a few reasons why… are paid monthly rather than biweekly. lows employees to earn interest on the The Camaraderie Note that some agencies (e.g., U.S. Postal money in the account, and they are Riverside: The City of Arts & Innovation Service, Federal Deposit Insurance not responsible for paying taxes on the Corp.) contribute more toward their interest earned until they retire. Centrally Located to Shopping, Dining, Recreation, and Places of Interest employees’ health insurance pre - When you retire, you also can elect miums; and, when those employees re - a lump-sum payment of these contri - Commissary and BX within 5 miles tire, they no longer receive the higher butions or a supplemental annuity. Close to VA and Loma Linda Hospitals agency contribution. The supplemental annuity would pay Superb onsite Wellness Program an additional $7 for each $100 of re - Ideal year-’round climate VOLUNTARY CONTRIBUTIONS tirement contributions, plus 20 cents One stroke away from the 18-hole, QUESTION: I am under the Civil for each full year the retiree is over age General Archie Old Golf Course Service Retirement System (CSRS) 55 at the time the annuity begins. and have just learned about the volun - You can withdraw the money in a Discover the benefits of tary contribution (VC) account, which lump-sum payment and only pay Air Force Village West Retirement! I could have been participating in. Can taxes on the interest earned because Call or go online to request information, you explain this account to me? the amount you placed into this ac - tour our award- Response: VC accounts have been count would already have been taxed. winning Village, or WeWelcome available for CSRS employees for many Or you could roll over the money into make a reservation years. CSRS employees and CSRS Offset an individual retirement account (IRA) for a fun- filled, Federal employees may contribute up to 10 to avoid paying taxes on the money mini-vacation government percent of their lifetime federal salary to until you withdraw money from the officials (GS7 where your food and this account as long as they do not owe IRA. and above) accommodations a deposit (e.g., temporary service) or re - You would need to submit form RI are complimentary. Military officers deposit for refunded CSRS retirement 38-124, “Voluntary Contributions Elec - of ALL branches contributions. tion,” which would direct OPM to pay of the uniformed If you owe a deposit or redeposit, you a lump-sum payment or a supple - services you would be required to pay off the mental annuity, or to place the money And, spouses. deposit or redeposit before you could into the IRA. contribute to the VC account. Federal You can send form 2804 to OPM, Employees Retirement System em - along with your retirement applica - ployees and CSRS retirees may not es - tion and form RI 38-124, to direct 1-800-729-2999 tablish a VC account. OPM to place the money in a Roth www.afvw.com You can open a VC account by IRA without having the account ac - AIR FORCE VILLAGE WEST, INC. filling out form 2804, available crue interest. It is advisable to check A TAX EXEMPT, NOT-FOR-PROFIT, PUBLIC BENEFIT CORPORATION 17050 Arnold Drive, Riverside, CA 92518 through the Office of Personnel Man - with a tax expert before moving CA RCFE License #330907913 • License #25-0000-347 • Certificate No. 165 agement (OPM). Your contributions money to a Roth IRA.

42 JANUARY 2011 | NARFE Vinson Hall Retirement Community

BENEFICIARIES QUESTION: How do I change my des - ignation of beneficiary forms? Response: It is important to keep your beneficiary forms up-to-date. Many people have events occurring in their lives and forget to make changes to their beneficiary forms. If you divorce, remarry, or have a child or adopt a child, you want to make sure your ben - efits are distributed according to your wishes. You also need to keep your des - WHERE THE EXCEPTIONAL ignated beneficiaries’ addresses current. Failure to do so may mean that your BECOME EXTRAORDINARY. beneficiary cannot be located, and, Add your name to our Expansion Priority Program List therefore, benefits would not be paid to that person. The preferred way is to file Home since 1969 to commissioned military officers a new “Designation of Beneficiary” form and their immediate family members, Vinson Hall is now when a beneficiary’s address changes. also open to select GS-14 and above federal employees. There are several forms: • SF 2823 for Federal Employees’ AN UNPRECEDENTED EXPANSION! Group Life Insurance; During this new stage of • SF 2808 for Civil Service Retire - growth and renovation, ment System (CSRS) retirement contri - butions and SF 3102 for Federal Em - Vinson Hall will add 75 ployees Retirement System (FERS) re - new apartment homes tirement contributions; over the next three years, • TSP-3 for your Thrift Savings Plan ranging in size from (TSP) account; and 1,200 to more than 2,100 • SF 1152 for unpaid compensation square feet, as well as a for active employees. Unpaid compen - new community center. sation would include a lump-sum pay - ment of your annual leave, your final This is a quiet community characterized by mature trees, walking paycheck and anything else the paths and lovely landscaping, located in McLean, Virginia, just across the agency owes you, such as a lump-sum Potomac from Washington, D.C. payment of a cash award. You must The time to act is now! Vinson Hall offers a resident-focused lifestyle complete the proper form and have two people witness your signature. perfectly suited to the extraordinary people who live here. You will need to submit these forms CALL TODAY FOR A PERSONAL APPOINTMENT OR TO to your agency, the TSP or the Office of JOIN THE VINSON HALL PRIORITY PROGRAM LIST Personnel Management. (888) 434-4616 Your will does not take the place of Also available now: A limited number of existing apartment homes! a beneficiary form. However, you may use the guidance attached to each form to designate that the benefits be Dignity #Security #Friendship paid according to your will. If you are 6251 Old Dominion Drive divorced and have a court order re - McLean, Virginia 22101 • www.vinsonhall.org NA1Q11 quiring you to pay benefits to

NARFE | JANUARY 2011 43 Questions & Answers

someone not appearing on the list, the laws of the state where you lived at earn above $37,680. Once you reach then the court order will be honored. the time of your death. your full retirement age, you can If you do not have beneficiary desig - work and earn as much income as nation forms on file, then your benefits SS AND THE WEP you want without having your Social will be paid according to the order of QUESTION: I will soon be age 66, Security affected. precedence established by law. For which is my full retirement age for So - CSRS employees are subject to the CSRS, FERS, TSP and unpaid compen - cial Security benefits. I plan to continue Windfall Elimination Provision (WEP). sation benefits, here is the order of to work for a few years and am covered However, the WEP does not apply precedence for payment if there is no under the Civil Service Retirement until after you retire. Therefore, you valid designation on file when you die: System (CSRS). I am thinking of ap - would receive your full Social Security • To your widow or widower; plying for my Social Security benefit benefit until you retire. • If none, to your child or children in but would like to know more about the equal shares, with the share of any de - earnings limitation test. ANNUITY REDUCTION ceased child distributed among that Response: If you are under your full re - QUESTION: I have 29 years of child’s descendants; tirement age when you start getting service, am age 47 and covered under • If none, to your parents in equal your Social Security payments, $1 in the Civil Service Retirement System shares or the entire amount to your benefits would be deducted for each $2 (CSRS). I will have 30 years of service surviving parent; you earn above $14,160. in a few months and plan to retire • If none, to the executor or admin - In the calendar year that you reach then. Will my annuity be reduced by 2 istrator of your estate; your full retirement age, $1 in benefits percent for each year that I am under • If none, to your next of kin under would be deducted for each $3 you age 55?

44 JANUARY 2011 | NARFE B

HOME LIGHTINGBreakthrough A floor lamp that spreads Response: You will not be eligible to re - tire until you reach age 55. You must meet both age and service requirements sunshine all over a room. to retire voluntarily (i.e., age 55 with 30 ® years of service). While you will have 30 The Balanced Spectrum floor lamp brings many of the years of service and meet the service re - benefits of natural daylight indoors for glare-free lighting quirements, you are not age 55 and will that’s perfect for reading. have to continue to work if you want to tudies show that sunshine can receive an immediate annuity. both lift your mood and enhance There are, however, two other types Syour energy levels. But as we all of retirement: Voluntary Early Retire - know, the sun does not always shine. ment Authority (VERA) and Discon - Now, however, there’s a solution to the tinued Service Retirement (DSR), which problem– The Balanced Spectrum® you may qualify to receive. In order to floor lamp will change not only the qualify, you must have 25 years of way you see, but also the way you feel service or be age 50 with 20 years of about your living and work spaces. It service. A voluntary early retirement is brings the benefits of natural daylight sometimes offered to employees when indoors, simulating the full spectrum of daylight. the agency has budget problems or needs to reduce its work force. A DSR is The Balanced Spectrum’s 27-watt compact bulb is brighter than a offered when there is a major reduction ® 100-watt ordinary light bulb. With the Try the Balanced Spectrum floor in force or transfer of function. The lamp for the best value ever! Now agency would inform employees by lamp’s sharp visibility, you will see with more clarity and enjoyment in close more than ever is the time to spread letter that they are eligible for a volun - tasks such as reading, writing, sewing, sunshine all over the room in your tary early retirement or a DSR. Unless and needlepoint. It is especially helpful home at this fantastic low price! The you receive a letter from your agency, for aging eyes. Balanced Spectrum® floor lamp comes you are not entitled to a voluntary early with firstSTREET’s exclusive guarantee. retirement or a DSR. Experience sunshine indoors at the Try this lamp for 90 days and return it touch of a switch. This amazing lamp Under a VERA or DSR, your an - for the product purchase price if not is not only easy on the eyes, it is easy on nuity would be reduced by 2 percent completely satisfied. the hands as well, featuring a special per year for each year that you are “soft-touch, flicker-free” rocker switch Balanced Spectrum® I under age 55. that is easier to use than traditional floor lamp ...... was $59.95 Call now for $10 instant savings! Technology revolutionizes Only $49.95 each + S&H the light bulb *Order two Balanced Spectrum® floor lamps Recycle NARFE • Save almost $61 over the life of the bulb and get FREE shipping on both lamps. “I caught the NARFE *Free shipping within the contiguous 48 states only. • 8,000 hours bulb life magazine while in the YMCA • Energy efficient Please mention promotional code 41539. For fastest service, call toll-free 24 hours a day. last week for my daily exer - • Shows true colors cise. To be honest, I took the 1-888-745-7365 magazine home with me and toggle or twist switches. And its flexible We accept all major credit cards, or if you gooseneck design enables you to get choose, you can pay by check over the phone. read it thoroughly. I’ll be light exactly where you need it. The To order by mail, please call for details. joining NARFE shortly!” high-tech electronics, the user-friendly www.balancedspectrum.com design, and a bulb that lasts 10 times longer than an ordinary bulb–all these Pass It On! features make the Balanced Spectrum® 9

floor lamp a must-have. 7 4

Copyright © 2009 by firstSTREET for Boomers 1 > and Beyond, Inc. All rights reserved. 4 NARFE | JANUARY 2011 45 NARFE News

sion. The revision adopted at the Con - Bylaws Committee Begins vention will replace the current Bylaws. Anything that chapters or federa - Work; Member Input Sought tions think should be changed in the current Bylaws should be communi - he recently named Bylaws Re - NARFE chapters and federations is cated to the Bylaws Review Committee view Committee has begun being sought. No amendments to the for its consideration. T its work, which will culminate current NARFE Bylaws will be consid - Suggestions and proposed Bylaws in a proposal to revise the existing ered at the 2012 NARFE National Con - changes should be sent to Bylaws Re - NARFE Bylaws. For the committee to vention. All of the time will be used to view Committee Chair Mary Williams produce the best results, input from discuss and adjust the proposed revi - at [email protected]. I Persistence Pays Off in Recruiting for Chapter 612 ersistence is a key to suc - prospects before they joined,” Joseph NARFE’s 2010 Recruiting Contest. cessful NARFE recruiting, ac - Cinadr, president of Johnny Appleseed Chapter 612 is equally relentless in P cording to the president of Chapter 612 in Mansfield, OH, told retention. “We don’t let anybody slip one of the top-recruiting chapters in NARFE’s Recruiting & Retention Journal . away from us without attempting to NARFE. “I have sent applications as Chapter 612 shared the first-prize many as three or four times to the same award for small-size chapters in Continued on p. 48

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46 JANUARY 2011 | NARFE JJooiinn NNAARRFFEE TTooddaayy!!

Who can join? To apply: Membership is open to civilians in any agency of • Complete the application below. the federal or D.C.* governments including: • Enclose payment information, bill pay, • Retirees check or money order payable to NARFE, • Active federal employees or request to be billed. • Spouses and former spouses of active and • Or go to our Web site at www.narfe.org. retired federal employees • Or call us at 800-6 27-3394 and join today! • Former employees eligible for deferred annuity *Prior to October 1, 1987 • Survivors of those eligible to join NARFE Enrollment includes membership in a local chapter and the national association, plus a subscription to NARFE’s monthly publication, NARFE magazine. NARFE MEMBERSHIP APPLICATION For Active and Retired Federal Employees www.narfe.org

1. Choose all that apply: Contact Information:  Retiree  Active employee  Spouse  Former spouse  Survivor  Former employee Full Name: Mr./Mrs./Miss/Ms. 2.  Also enroll my spouse ______full name

3.  Please enroll me in NARFE chapter ______Street Address Apt./Unit 4. ___$_4_5_____ x=______Membership Fee # of People Total City/State/ZIP Per Person Enrolling Payment Phone Number  Total payment (check, bill pay or money order payable to NARFE )  Bill me (Membership starts when payment is received) E-mail Address  Charge to my credit card The first year membership fee includes national and chapter dues. Date of Birth Credit Card Information: Card type: MasterCard VISA   Spouse’s Date of Birth (if applicable)  Discover  AMEX Card no. ______Recruiter’s Membership and Chapter Number Expiration Date ______(MM) (YY) MAIL TO: Name on Card (Print) ______NARFE Member Records 606 N. Washington St. Signature ______Date ______Alexandria, VA 22314-1914 Fax: 703-838-7783 1Q

NARFE | JANUARY 2011 47 Pioneering audiologist NEW Continued from p. 46 invents “reading glasses” contact them by phone or letter, where for your ears. we actively promote dues withholding and life membership,” Cinadr says. Neutronic Ear is the easy, virtually invisible The chapter takes advantage of and affordable way to turn up the sound events to gain members. At a conven - tion of the National League of Postmas - on the world around you. ters, for instance, members of Chapter You don’t have to pay through the 612 set up a booth and recruited new nose to get Personal Sound members and reinstated those who had let their memberships lapse. Amplification Technology. The chapter also writes letters to It’s amazing how technology has changed local newspapers and radio stations, the way we live. Since the end of the Second alerting the federal community on pos - World War, more products have been sible erosion of federal benefits; leaves invented than in all of recorded history. After • Hard to see NARFE material at post offices and en - WWII came the invention of the microwave • Simple to use courages postmasters to share it with oven, the pocket calculator, and the first employees; and sends notices of wearable hearing aid. While the first two have • Easy to afford gotten smaller and more affordable, hearing chapter meetings to local newspapers. aids haven’t changed much. Now there’s an Recruiting Contest winners are: alternative… Neutronic Ear. a state-of-the-art manufacturing process and Category I: Small-size chapters superior design, we can make Neutronic Ear 1. 198 Fort Dodge, IA First of all, Neutronic Ear is not a hearing aid; affordable and pass the savings on to you. 1. 612 Johnny Appleseed-Mansfield, OH it is a PSAP, or Personal Sound Amplification 2. 2358 Shenandoah County, VA Product. Until PSAPs, everyone was required It works… but don’t take our word for it. 3. 2213 Vikingland-Alexandria, MN to see the doctor, have Why pay thousands to make Just think of the 4. 1388 Lowndes County, MS hearing tests, have everything sound louder when 5. 813 Shelbyville, IN fitting appointments places you’ll enjoy what you really need is a 6. 2230 Highland County, OH Personal Sound Amplification (numerous visits) and Neutronic Ear 7. 1453 Twin City-Texarkana, AR then pay for the Product? We’re so sure you’ll be Parties 8. 799 Chanute, KS instruments without absolutely thrilled with the Restaurants 9. 537 Hutchinson, KS any insurance coverage. quality and effectiveness of this These devices can Church product that we are offering it to Category II: Medium-size chapters cost up to $5000 each! Lectures the public at a low introductory 1. 2243 NW Suburbia-Twin Cities, MN The high cost and Book Groups price with our exclusive trial 2. 52 Palo Alto, CA inconvenience drove an Bird-watching offer. If, for any reason, you 2. 1154 North Tampa, FL innovative scientist to Movies are not completely amazed by 3. 1435 Flint River, GA develop the Neutronic And almost how this product improves 4. 2104 Dunwoody, GA Ear PSAP. your life, simply return it for a 5. 68 Bakersfield, CA any daily activity “No Questions Asked” refund of 6.1375 SW Houston, TX Neutronic Ear has been designed with the the product purchase price within 30 days. 7. 1643 Dixie Area, KY finest micro-digital electronic components Call now. 8. 1140 Gulf Beaches-S Pinellas Cnty, FL available to offer superb performance and Visit us on the web at 9. 1501 Warren County, MS years of use. Many years of engineering and Category III: Large-size chapters www.neutronicear.com development have created a product that’s 1. 1085 Mory Lewis, CO ready to use right out of the box. The patented 2. 32 Spokane, WA case design and unique clear tube make it ™ 3. 124 Rochester, NY practical and easy to use. The entire unit NeutronicEar 4. 148 Des Moines, IA weighs only 1/10th of an ounce, and it hides The Sound Decision™ 5. 119 Fargo/Moorhead, ND comfortably behind either ear. The tube is Call now for the lowest price ever. 6. 1063 Chambersburg, PA designed to deliver clear crisp sound while leaving the ear canal open. The electronic Please mention promotional code 41538. 7. 65 San Francisco, CA components are safe from moisture and wax 1-888-654-0587 8. 2184 Tulsa Day-Lite, OK buildup, and you won’t feel like you have a 9. 181 Bremerton, WA 4

Neutronic Ear is not a hearing aid. If you believe 4 I

1 10. 969 St. Mary’s County, MD. circus peanut jammed in your ear. Thanks to you need a hearing aid, please consult a physician. 0 8 48 JANUARY 2011 | NARFE NARFE Dues Withholding Application Retired Federal Employees Only

If you are a Retired Federal Employee and you would like your NARFE dues to be deducted from your annuity payments, fill out the form below.

Dues Withholding Application (Retirees Only) Fill out this form completely and mail to: Attn: Member Records, NARFE, 606 N. Washington St., Alexandria, VA 22314 (Do Not Send Money With This Form). (Please Print) — — CS — — — Social Security Number (9-digits) Civil Service Annuity Number (Include prefix CS A or CS F) (Include any applicable suffix )

(Mr., Mrs., Miss, Ms.)

Address Telephone

City, State, ZIP E-mail

Date of Birth NARFE Membership Number NARFE Chapter Number

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

Do You Authorize Your Spouse’s Dues to Be Withheld from Your Annuity? K Yes K No If YES, enter your spouse’s name and membership number below. You authorize: Annual NARFE dues of $34.00 plus Chapter dues of record to be Name Number withheld annually.

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

Dues payments & gifts or Signature of Annuitant or Survivor-Annuitant Date contributions to NARFE are not deductible as charitable contributions for federal income tax purposes.

NARFE | JANUARY 2011 49 Out & About With the Chapters For more NARFE chapter and federation photos, go to www.narfe.org. Click on NARFE magazine.

To mark Veterans Day, Margaret Tempel of Chapter 2067 in Granite City, IL, presented her chapter’s annual dona- tions to the Jefferson Barracks Division of the St. Louis VA Medical Center. Rocky Buchanan accepted the donations of clothing, toiletries, NARFE members from Boise and Nampa, ID, met recently with Sen. reading material, and Mike Crapo, a member of the Senate Finance Committee and the cash for phone cards National Commission on Fiscal Responsibility and Reform. Pictured, and reading glasses. from left to right: Bob Mallis, vp of Chapter 83 in Boise; Arnold Hartigan, Idaho Federation vp; Dennis Frasier, president of Chapter 90th Anniversary 1025 in Nampa; Crapo; Nick Steele, Chapter 83 president; and Ruth Merchandise for Sale Ann Smith, Chapter 1025 legislative chair. ARFE has the following 90th An - Nniversary merchandise for sale: • 90th Anniversary PowerPoint Pre- Members of sentation, $5; Chapter 7 in • 90th Anniversary Lapel Pin, $3 . Arlington, VA, To order: Go to www.narfe.org, click participated in an Info Expo at a on Leadership at the top of the page, then local mall to click on NARFE 90th Anniversary Mer chandise. publicize NARFE • 90th Anniversary Book, NARFE: Celebrating 90 Years of and recruit Service, 1921-2011, $10 . To order: See order form, p. 21. members.

NARFE members contributed for Alzheimer’s research: SUPPORT ALZHEIMER’S RESEARCH $9 Million Fund $8,867,643* Enclosed is my NARFE Alzheimer’s contribution: $ ______. Every cent that is contributed is used for research. *Total as of October 31, 2010 Please circle: Mr. Mrs. Miss Ms. 100% of all contributed funds Name ______go to Alzheimer’s research. Address ______If you have any questions, write to: National Committee Chairman City ______State ______ZIP ______Barb L. Pretzer, 4817 Rockridge Ct. Chapter number ______Manhattan, KS 66503 Credit Card Information: K Visa K MasterCard KDiscover K AMEX Your charitable contribution is tax deductible to the fullest extent allowed by law. Write your Card Number: ______chapter number on check; make it payable to: Expiration Date:______(mm)/______(yy) 3-Digit Security Code: ______NARFE-Alzheimer’s Research and mail to: Alzheimer’s Association Name on Card: (print) ______225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633 Signature: ______Date: ______

50 JANUARY 2011 | NARFE Letters

aware that Congress had provided for Against C-CPI-U federal retirees to get a credit since they egarding the “New Method were left out of the original stimulus for Deciding COLAs Dis - bill that gave all other retirees a $250 R cussed” article in the No - REMINDER: check. So, thanks go to NARFE for both vember issue, I thought the purpose of initially lobbying to get that credit for the cost-of-living adjustment (COLA) We must enlist as us and then for publicizing it in the was to protect one’s standard of living many members as monthly magazine. This goes to show against inflation. However, the “substi - that we get great dividends from our tution effect” on which the C-CPI-U is possible to defend very modest annual NARFE dues! based is really just a euphemism for a re - Dick McLane, duction in one’s standard of living forced our benefits. Ask a Springfield, IL by economic necessity as prices rise. So use of the C-CPI-U would undermine friend to join NARFE. Book Lover the purpose of the COLA as a matter of hank you for sending the CD principle. I hope NARFE’s stance on of the PowerPoint presentation adoption of the C-CPI-U ultimately Ton NARFE’s history. At a re - turns out to be less accommodating was very timely, and I quickly amended cent meeting of the Bismarck-Mandan than the article seems to suggest. the three state tax returns I’d filed that (ND) Chapter Executive Committee, I John Miller, did not deduct that income. All were fa - stressed how impressed I am with the Lincoln, CA vorably acted upon, and I received very book, NARFE: Celebrating 90 Years of welcome refunds for each of those Service, 1921-2011, and I have been en - Thanks to NARFE three years. Now I can say thanks again couraging others to purchase a copy for few years ago, I thanked to NARFE for a $250 check, plus in - their own use and reference. I will NARFE for pointing out in terest, I just received from the Depart - treasure the book and the CD as ANARFE magazine that fed - ment of the Treasury, representing a NARFE keepsakes forever. eral retirement pay was not taxable in credit on my 2009 federal tax return. Arden Mathison, my state. Fortunately, that information When I filed that return, I was not Bismarck, ND Contact Us NARFE HEADQUARTERS 606 North Washington St., Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7785

CHANGE OF ADDRESS: Contact Member Records toll-free at 800-456-8410, or send change of address by postal mail to NARFE Headquarters, ATTN: Member Records, or by e-mail to [email protected].

Q&A: To obtain an answer to a retirement benefits question, call 703-838-7760 and ask for the Retirement Benefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: Retirement Benefits; or submit it by e-mail to retbenefi[email protected].

OUT & ABOUT : Submit photo with caption information by postal mail to NARFE Headquarters, ATTN: Out & About, or by e-mail to [email protected].

LETTERS TO THE EDITOR : Letters to the editor may be edited for grammar, clarity and length. All letters must be signed. Send by postal mail to NARFE Headquarters, ATTN: Letters to the Editor, or by e-mail to [email protected] .

NARFE | JANUARY 2011 51 NARFE Perks NARFE 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 below and encourages its members to shop and compare before making a decision on any financial matter.

MOVING SERVICES INSURANCE TRAVEL

NARFE INSURANCE SERVICES ALASKA CRUISE 1-800-233-5764 Specials! NARFE MEMBER Insurance plans designed and admin - HOMEBENEFITS istered exclusively for NARFE members. 1-800-666-9203 Call for information on Whole and Term http://narfe.myhomebenefits.com Life, Hospital Indemnity, Accidental Injury • Earn thousands in cash-back re - and Death Plan, Dental Plan and Cancer wards when you buy or sell a home* Care Plan. For information on Long Term • Shop competitive mortgage rates, Care call the Long Term Care Unit at 1- receive discounts on closing costs, plus 800-358-3795. 7-nt rates starting at just $489 take advantage of your VA Loan Benefits • Round trip, One-Way and CruiseTours • Receive preferred pricing on intere - GEICO: 1-800-368-2734 • Extra amenities on many sailings sete moving services with the nation’s NARFE members with good driving • Exclusive NARFE Group rates most trusted moving company – Allied records may be eligible for quality auto - • Discounted insurance and shore Van Lines! mobile insurance from GEICO. Ask about excursions! *State restrictions apply. Call or visit website for details. the NARFE discount now available to Special NARFE Hosted Cruise members in many states. Call today for August 27, 2011 ~ from $669! BEKINS VAN LINES your free, no-obligation rate quote. Be 1-800-456-6832 (M-F, 8 a.m.-5 p.m. CT) sure to mention that you’re a NARFE [email protected] member! All NARFE • Discount amount varies in some states 1-800-607-4538 members will re - • Discount not available in all states or in Website: www.NARFEtravel.com ceive discounted pricing for all interstate all GEICO companies shipments. Discount will apply to • One group discount applicable per packing and moving services and valua - HEARING BENEFITS policy. tion protection. All intrastate shipments, TRUHEARING locals and international moves will be The TruHearing program can save competitive in cost based on your geo - EMERGENCY SERVICES you hundreds of dollars: graphical location. Mention you are a • Free hearing screening NARFE member and transportation • 45-day, money-back guarantee agreement #00930. SINCE 1974 • 3-year warranty 1-800-423-3226 • Free one-year supply of batteries VACATION RENTALS Medical Air Services Association has • 1,400 hearing professionals been the industry leader in prepaid emer - nationwide gency assistance services for more than • 12-months, no interest financing 30 years. NARFE members have experi - (available upon approved credit) enced MASA’s “peace of mind” services Endless Vacation Rentals ® since 2001. Now NARFE members are As a member of NARFE, you will re - entitled to even more: air ambulance ceive 10% off the “Best Available Rate” transportation, helicopter transportation, at vacation rental properties booked at ground ambulance, vehicle return, mortal www.evrentals.com/narfe or by calling 1- remains transport, and much more! Call to schedule your appointment 877-670-7088, prompt 3, and providing Call MASA Today. It Could Save Your Life! 877-360-2442 promotion code 20672 at time of Operators available Mon-Fri booking. 9 a.m.-9 p.m. (East Coast time)

52 JANUARY 2011 | NARFE HOTELS CAR RENTALS CREDIT UNION

CHOICE HOTELS INTERNATIONAL With 6,000 hotels in the United States and throughout the world, Choice Ho - ALAMO/NATIONAL tels® offers something for everyone. Join NARFE’S O FFICIAL CREDIT UNION the Choice Privileges® rewards program CAR RENTAL As a member of NARFE, you have and earn points with every qualifying stay 1-800-354-2322 — www.alamo.com the privilege of joining NARFE Premier toward free nights, Airline Rewards, gift Welcome to Alamo Country. Where Federal Credit Union, which has been cards and more. As a NARFE member, NARFE members get unlimited mileage serving members since 1935. We offer receive 20% off your next stay at partici - and year-round discounts off Alamo’s extensive services at competitive rates pating hotels when you use Special Rate already great rates. Book with your to members nationwide. Your savings ID 00801967. This offer is subject to avail - travel agent or Alamo®. Be sure to re - are federally insured to at least $250,000 ability and cannot be combined with any quest I.D. Number 262544 and Rate and backed by the full faith and credit of other offer. Advance reservations re - Code BY (A-1 for weekend rentals) at the United States Government. quired. To book, visit choicehotels.com the time of reservation. (Same ID For more information, call 800-328- or call 800-258-2847. number and code applies to National Car Rental.) 1500, e-mail jparish@narfepremierfcu. org or visit us at NARFEpremierfcu.org.

CREDIT CARD AVIS: 1-800-331-1441 The employees/owners of Avis offer guaranteed low rates and quality serv - WYNDHAM HOTEL GROU P ices to members of NARFE. Mention Bank of America now offers the offi - As a member of NARFE, you will re - ID# A991900. cially approved credit card program for ceive up to 20% off the “Best Available NARFE, featuring the Platinum Plus ® Rate” at participating locations when you HEALTH SCREENING MasterCard ® with WorldPoints . This is travel. Book online or call and give agent the only credit card that helps support your special discount ID number, #20672, NARFE every time you use it to make a at time of booking to receive discount. purchase–at no additional cost to you. Call toll-free 1-866-438-6262 Whether you are looking for an upscale LIFE LINE SCREENING Use NARFE’s full name, not NARFE. hotel, an all-inclusive resort or something Life Line Screening, America’s Use priority code: UABEWD. more cost-effective, we have the right leading provider of community-based hotel for you... and at the right price. So preventive health screenings, will con - start saving now. Call our special duct the following screenings using NARFE MERCHANDISE member-benefits hotline 1-877-670-7088 state-of-the-art ultrasound technology and reserve your room today at one of in your neighborhood: NARFE these fine hotels: Wyndham Hotels and 1. Stroke/Carotid Artery GENERAL STORE Resorts®, Days Inn®, Ramada World - 2. Abdominal Aortic Aneurysm wide®, Super 8®, Wingate By Wyn - 3. Atrial Fibrillation dham®, Baymont Inns and Suites®, 4. Peripheral Arterial Disease. Hawthorn Suites® By Wyndham, Mi - You will receive a confidential written crotel Inns and Suites®, Howard report within 21 days. Life Line Screening Johnson®, Travelodge® and Knights and NARFE encourage you to share Order NARFE name badges and Inn®. these test results with your doctor. All four apparel, including jackets, baseball screenings cost just $135. To schedule an caps, polo shirts and T-shirts! appointment, please call 1-800-324-9906 See MEMBER PERKS and give the operator code number: on the NARFE Web site, or go to: BKHN075 or visit www.lifelinescreening. www.narfegeneralstore.com. com/NARFE. Toll-Free Phone: 877-866-0102 Coverage may vary and may not be Fax: 301-371-6824 available in all states.

NARFE | JANUARY 2011 53 For the Record

The chart below tracks the CPI-W, the monthly infla - October Index Up Slightly tion change, and the cumulative percentage gain for the next CSRS and Social Security COLA. Editor’s note: Based on price-index figures from July-September 2010, CPI-W MONTHLY % C HANGE there will be no automatic cost-of-living adjustment (COLA) for 2011. % C HANGE FROM 215.5 New information below relates to the 2012 COLA calculation. he Consumer Price Index for Urban Wage Earners and Clerical October 2010 214.6 +0.1 -0.4 Workers (CPI-W) increased 0.1 percent in October. To calcu - November December Tlate the 2012 cost-of-living adjustment (COLA), the indices of January 2011 July, August and September 2011 will be averaged for a third-quarter February determinant, which will be compared with the 2008 third-quarter base March of 215.495 (because of price deflation in the past two measurement April years, the 2008 third-quarter average is still the point of comparison). May The October index of 214.623 is down 0.4 percent from the base. June Benefits awarded under the Federal Employees’ Compensation Act July (FECA) to individuals suffering work-related injuries or illnesses are August adjusted according to each calendar year’s percentage change in the September CPI-W. October’s index is 1.4 percent higher than the December 2009 base index of 211.703. I

November’s Thrift Savings Plan Investments * Highs and Lows Month G Fund F Fund C Fund S Fund I Fund 2009 December 0.25% (1.55%) 1.94% 6.57% 1.43% ByTracey Ray 2010 January 0.29% 1.54% (3.60%) (2.43%) (5.17%) February 0.24% 0.38% 3.11% 4.89% 0.06% n early November, stock markets March 0.27% (0.11%) 6.04% 7.39% 6.28% rose to new recovery highs after the April 0.28% 1.07% 1.58% 4.82% (2.35%) May 0.28% 0.85% (7.99%) (7.51%) (11.20%) IFederal Reserve announced that it June 0.24% 1.56% (5.24%) (6.90%) (1.75%) would spend $600 billion to buy July 0.23% 1.07% 7.01% 7.00% 10.78% Treasury bonds over the next eight August 0.22% 1.28% (4.51%) (5.59%) (3.14%) September 0.17% 0.17% 8.92% 11.47% 9.81% months in an effort to lower long-term October 0.18% 0.36% 3.80% 4.48% 3.63% interest rates and boost economic ac - November 0.17% (0.57%) 0.01% 3.00% (4.84%) tivity. But stocks took a tumble mid - Last 12 Months 2.85% 6.17% 9.95% 28.10% 1.27% month amid signs China may need to Month L Income L 2010 L 2020 L 2030 L 2040 cool off its red-hot economy by raising 2009 December 0.59% 0.70% 1.50% 1.85% 2.12% interest rates. China has been the global 2010 January (0 .45%) (0.58%) (2.03%) (2.49%) (2.88%) economy’s strong spot, and there are February 0.74% 0.81% 1.61% 1.94% 2.18% March 1.43% 1.61% 3.75% 4.52% 5.15% fears that weakness there would cause a April 0.50% 0.51% 0.76% 0.94% 1.05% widespread slowdown. When worries May (1.50%) (1.64%) (4.98%) (6.07%) (6.97%) about Ireland needing a financial rescue June (0.61 %) (0.68%) (2.34%) (2.98%) (3.47%) July 1.81% 1.81% 4.82% 5.80% 6.60% package were added to the mix, the S&P August (0.63 %) (0.62%) (2.29%) (2.88%) (3.33%) 500 (C Fund) posted its largest one-day September 2.00% 2.00% 5.54% 6.77% 7.76% decline since August, and problems in October 0.92 % 0.92% 2.29% 2.78% 3.16% November (0 .05%) (0.05%) (0.49%) (0.56%) (0.64%) the eurozone caused the I Fund to be ) Last 12 Months 4.80% 4.83% 7.84% 9.15% 10.06% the worst performer in November. *This chart is provided as a service to NARFE members who enrolled in the Thrift Savings Plan while employed by the federal government. Retirees are not eligible for enrollment. These returns are net Tracey Ray is chief investment officer of the effect of accrued administrative expenses and investment expenses/costs. Percentages in ( ) are of the Thrift Savings Plan. negative. Source: tsp.gov.

54 JANUARY 2011 | NARFE R e P t d ri o c u ce N a $ ce tr Finally, a cell phone 4 d n 8 b o y C that’s… a phone! “Well, I finally did it. I finally decided to enter the digital age and get a cell phone. My kids have been bugging me, my book group made fun of me, and the last straw was when my car broke down, and I was stuck by the highway for an hour before someone stopped to help. But when I went to the cell phone store, I almost changed my mind. e phones are so small I can’t see the numbers, much less push the right one. ey all have cameras, computers and a “global-positioning” something or other that’s supposed to spot me from space. Goodness, all I want to do is to be able to talk to my grandkids! e people at the store weren’t much help. ey couldn’t understand why someone wouldn’t want a phone the size of a postage stamp. And the rate plans! ey were complicated, confusing, and expensive… and the contract lasted for two years! I’d almost given up when a friend told me about her new Jitterbug phone. Now, I have the convenience and safety of being able to stay in touch… with a phone I can actually use.” Questions about Jitterbug? Try our pre-recorded Toll-Free Hotline1-888-827-9409. 877- e cell phone that’s right for me. Sometimes I think the people who designed this phone 569- and the rate plans had me in mind. e phone fits easily in my pocket, but it flips open and 8631 reaches from my mouth to my ear. e display is large and backlit, so I can actually see who is calling. With a push of a button I can amplify the volume, and if I don’t know a number, I can simply push one for a friendly, helpful operator that will look it up and even dial it for me. e Jitterbug also reduces background noise, making the sound loud and clear. ere’s even a dial tone, so I know the phone is ready to use. Affordable plans that I can understand – and no contract to sign! Unlike other cell phones, Jitterbug has plans that make sense. Why should I pay for minutes I’m never going to use? And if I do talk more than I plan, I won’t find myself with no minutes like my friend who has a prepaid phone. Best of all, there is no contract to sign – so I’m not locked in for years at a time or subject to termination fees. e U.S. – based customer service is second to none, and the phone gets service virtually anywhere in the country.

Monthly Minutes 50 100 FREE Gift Monthly Rate $14.99 $19.99 Operator Assistance 24/7 24/7 911 Access FREE FREE Order now Long Distance Calls No add’l charge No add’l charge and receive a Voice Dial FREE FREE Nationwide Coverage Yes Yes free Car Charger. Available in Trial Period 30 days 30 days A $24 value! Red, White (shown), More minute plans available. Ask your Jitterbug expert for details. and Graphite. Call now and get a FREE GIFT. Try Jitterbug for 30 days and if you don't love it, just return it. Why wait, the Jitterbug comes ready to use right out of the box. e phone comes preprogrammed with your favorite numbers, and if you aren’t as happy with it as I am you can return it for a refund of the purchase price. Call now, the Jitterbug product experts are ready to answer your questions. Jitterbug Cell Phone Call now for our NEW low price. Please mention promotional code 41537. 8

1-877-569-8631 5 4

www.jitterbugdirect.com 7 4 IMPORTANT CONSUMER INFORMATION: All rate plans require the purchase of a Jitterbug phone and a one-time set up fee of $35.00. Coverage and service is not available everywhere. There are no additional fees to call Jitterbug’s 24-hour U.S. Based Customer Service. However, for calls to an Operator in which a service is completed, minutes will be deducted from your monthly balance equal to the length of the call and any call connected by the Operator, plus an additional 5 minutes. Rate plans do not include government taxes or assessment surcharges. Prices and fees are subject to change. Savings are based on marketing materials from nationally available cellular companies as of June, 2010 (not including family share plans). The full price of the Jitterbug Phone will be refunded if it is returned within 30 days of purchase, in like-new condition, and with less than 30 minutes of usage. A Jitterbug Phone purchased from a retail location is subject to the return policy of that retail location. The Jitterbug phone is created together with worldwide leader Samsung. Jitterbug is a registered trademark of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics America, Inc. and its related entities. Copyright ©2010 GreatCall, Inc. Created together with worldwide leader Samsung. Copyright © 2010 by firstSTREET for Boomers and Beyond, Inc. All rights reserved. Medium Blue FULL S-T-R-E-T-C-H WAIST!

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