National Active and Retired Federal Employee Association

113th Congress2013 - 2014

NARFE’s Mission

• To support legislation beneficial to current and potential federal annuitants and to oppose legislation contrary to their interests.

• To promote the general welfare of current and potential federal annuitants by advising them with respect to their rights under retirement laws and regulations.

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

Coalitions• The Federal-Postal Coalition• The Coalition to Assure Retirement Equity

(CARE)• The Leadership Council of Aging

Organizations (LCAO)• The Military Coalition• The Coalition for Effective Change (CEC)• The Public Employees Roundtable

What Services NARFE Provides

• Legislative Advocacy– Experienced legislative staff– Expert analysis and testimony on proposed

legislation

• Retirement Benefits Counseling– Lifetime benefit counseling– Works with OPM daily resolving benefit

problems for members

113th CongressLegislative Program Outline

• 113th Congress Priorities

• Three Major Categories–Preserving Existing Benefits– Enhancing Existing Benefits–Additional Key Positions

113th Congress Legislative Priorities

• Defend the earned pay, benefits and deferred compensation of federal civilian employees and retirees.

• Protect federal and postal retirees’ existing retirement and health benefits from reduction and/or erosion.– Examples: FERS Income & FEHPB

Protecting Current BenefitsExamples: FERS Income and FEHBP

• Current Federal/Postal FERS Enrollees– Numerous bills introduced to increase

contributions, reduce annuity or totally eliminate.

– FERS defined-benefit annuity (1.1%) constitutes largest portion of FERS retirement income

• Potential impact of converting FEHBP to a voucher payment plan.

% of FERS Income by SourceCurrent FERS employee retiring at age 62 after 30 years service .

A TSP monthly annuity with only 1% agency automatic contribution.

TSP

% of FERS Income by SourceCurrent FERS employee retiring at age 62 after 30 years service .

A TSP monthly annuity with only 1% agency automatic contribution.

TSP

% of FERS Income by SourceCurrent FERS employee retiring at age 62 after 30 years service.

A TSP monthly annuity with only 1% agency automatic contribution.

NARFE is working to protect all three FERS income sources.

FERS Annuity(1.1%)

Hypothetical FEHBP Voucher ExampleBlue Cross-Blue Shield Family Plan

BC/BS Total CostGovernment

Employee

2009 $13,446 $9,167 $4,279

2012 (Voucher)

$15,934 $9,167 $6,767

2012 (FEHBP) $15,934 $10,774 $5,160

Added Cost + $1,607*

* + $1,607/Year = NARFE Dues for 40 Years

113th CongressLegislative Priorities (cont’d)

– Protect current and future federal civilian employees’ pay, and the retirement and health benefits of current and future federal and postal employees.

– Protect the viability, stability and standard of service of established government functions.

113th CongressLegislative Program Outline

• 113th Congress Priorities

• Three Major Categories–Preserving Existing Benefits– Enhancing Existing Benefits–Additional Key Positions

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Preserve Existing Benefits:

Postal Service Reform• NARFE supports legislation to maintain six

delivery days per week• NARFE will join with other federal organizations

to seek legislation to keep small Post Offices open through the United States

• NARFE supports legislation to relieve USPS of its burdensome requirement to prefund over 10 years its future retiree health care obligations that are estimated to accrue over the next 75 years.

Preserve Existing Benefits:Economic and Health Security Examples

• Economic Security– NARFE supports full implementation of

federal pay parity– Will advocate legislation to remove the

increase in pension contributions of new federal employees enacted in February 2012.

– Shall continue efforts in strong support of COLAs on a regular annul schedule, computed on the same basis and paid at the same time.

• Health Security– NARFE opposes reductions in the government

contributions toward FEHBP premiums.– Opposes unjustified cost increases, including

those caused by shifting cost to enrollees or where insurers raise rates without legitimate rationale.

– Will oppose indexing flat payment by the US Government for FEHBP.

Preserve Existing Benefits:Economic and Health Security Examples

Why You Should Join NARFE

• World’s cheapest insurance…$40/yr– Protect 60% of your FERS Income– Control FEHBP costs

• Your own personal HR benefits counselor– Help avoid retirement mistakes– Available for spouse and family

Join Today!

National Active and Retired Federal Employees Association

Presentation Notes• Please make any changes to the charts to suit your situation.• These charts incorporate the examples used at the national

convention.• This presentation was developed for use by the Ohio Federation

and has not been vetted by the national headquarters.

Edward J KonysPast President Ohio Federationejk0610@woh.rr.com