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COLUMNS6 Message From the

National President

26 Managing Money

28 LiveWell

38 Treasurer’s Account

39 Report From theRegions

For Active and Retired Federal Employees

RETIREMENT LIFE FEBRUARY 2009, Volume 85,Number 2

LEGISLATIVE REPORT

30 Questions &Answers

37 Retirement Benefits

40 NARFE News

44 Out &About

46 Letters

50 For the Record: COLA Chart,TSP Investments

DEPARTMENTS

8 OPMApproves Revisions in 2009 Blue Cross/Blue Shield Plan;Allows Late Open Season Changes

12 NARFE Leads Effort to Obtain Medicare EmployerDrug Payment for FEHBP

14 Monitoring Developments in Health Care Reform

15 Roundup of GPO andWEP Information

16 Legislative Training Conference Deadline Coming

18 Civics 101: Civic Travel

NARFE ResourcesAlzheimer’s Fund . . . . . . . . . . . .38

ScholarshipApplication . . . . . . .41

Silver Circle Program . . . . . . . . .43

NARFE-FEEAFund . . . . . . . . . .44

MembershipApplication . . . . . .45

NARFEMember Perks . . . . . . .48

visit us online at www.narfe.org

20 Don’t Let the Recession KeepYou Home.Despite the dismal economy–and in somecases, because of it–there are still travel bar-gains to be had. Here’s where to find them.

COVER STORY

Cover design by Jim Richards

EditorMargaret M. Carter

Assistant EditorDonna J. St. John

Graphic DesignerBeth Bedard

Contributing DesignersCharlene GridleyJim Richards

Editorial Board:Margaret L. BaptisteJoseph A. BeaudoinNathaniel L. BrownRichard C. Ostergren

Editorial OfficeNARFE, Attn: NARFEmagazine606 NorthWashington St.Alexandria, VA 22314-1914

Phone: 703-838-7760Fax: 703-838-7781E-mail: [email protected]

Advertising SalesWarren Berger

Media People Inc.122 East 42nd Street, Suite 725

New York, NY 10168212-779-7172, ext. 223

E-mail: [email protected]

National HeadquartersNARFE Phones Open

8 a.m.-4:45 p.m. (ET) Monday-FridayTelephone: 703-838-7760

Fax: 703-838-7785E-mail: [email protected]

The Association, since July 1970, has beenclassified by the IRS as a tax exempt labor or-ganization [not a union]; however, dues andgifts or contributions to the Association arenot deductible as charitable contributions forincome tax purposes.

Web site: www.narfe.org

NARFE on Tape

Monthly issues ofNARFEmagazine are avail-able on cassette in selected areas of thecountry through theNational Library Servicefor the Blind and Physically Handicapped.To find out about availability in your area,call toll-free 800-424-8567 and ask for theReference Section.

REGIONAL VICE PRESIDENTS

NATIONAL OFFICERSMARGARET L. BAPTISTE, President

[email protected]

JOSEPH A. BEAUDOIN, Vice [email protected]

NATHANIELL. BROWN, [email protected]

RICHARD C. OSTERGREN, [email protected]

NARFE (ISSN 0034-6179) is published monthly by the National Active and Retired Federal Employees Associa-tion (NARFE), 606 N.Washington St.,Alexandria,VA 22314. Periodicals postage paid at Alexandria,VA, and ad-ditional mailing offices.Members:Annual dues includes subscription.Non-member subscription rate $33.Post-master: Send address change to: NARFE Attn: Member Records, NARFE 606 N.Washington St., Alexandria,VA22314.To ensure prompt delivery,members should also forward changes of address without delay. Becauseof the volume involved,NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts,although every reasonable precaution is taken.All submissions become the property of NARFE.Contents of thismagazine are copyrighted © 2009.Advertisements in the magazine are not endorsements of products and/orservices by NARFE,unless officially stated in the ad.We shall accept advertising on the same basis as other rep-utable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in NARFE,but at the same time we will not undertake to guarantee the reliability of our advertisers.

REGION I Augie Stratoti(Connecticut, Maine, Massachusetts, NewHampshire, New York, Rhode Island andVermont)16 Birch Hill DriveNashua, NH 03063-2537Tel: 603-889-1073Fax: 603-882-8144E-mail: [email protected]

REGION II Charles W. Saylor(Delaware, District of Columbia, Maryland,New Jersey and Pennsylvania)205 E. Joppa Road, Apt. 1509Towson, MD 21286-3225Tel: 410-938-8783E-mail: [email protected]

REGION III Robert S. Harrell(Alabama, Florida, Georgia, Mississippi,Puerto Rico, South Carolina and VirginIslands)25112 Kingston DriveAthens, AL 35613-7382Tel, Fax: 256-232-2013E-mail: [email protected]

REGION IV Paul E. Johnson(Illinois, Indiana, Michigan, Ohio andWisconsin)P.O. Box 234, 7183Main St.Wadesville, IN 47638-0234Tel: 812-306-5137E-mail: [email protected]

REGION V Richard G. Thissen(Iowa, Kansas,Minnesota,Missouri,Nebraska, NorthDakota and SouthDakota)P. O. Box 485Lake Ozark, MO 65049-0485Tel: 573-365-5679Fax: 573-964-5074E-mail: [email protected]

REGION VI Jerry D. Hatfield(Arkansas, Louisiana, Oklahoma,Republic of Panama and Texas)231 Inwood RoadTexarkana, TX 75501-9082Tel, Fax: 903-832-1120E-mail: [email protected]

REGION VII Martha E. Leiker(Arizona, Colorado, NewMexico, Utah andWyoming)945W. 96th Ave.Denver, CO 80260-5489Tel: 303-430-4794Fax: 720-540-3007E-mail: [email protected]

REGION VIII Helen L. Zajac(California, Guam, Hawaii, Nevadaand Republic of Philippines)106 Cottonwood DriveVallejo, CA 94591-5659Tel: 707-644-7565Fax: 707-644-5019E-mail: [email protected]

REGION IX Lanny G. Ross(Alaska, Idaho, Montana, Oregon andWashington)7450 Illahee Road, NEBremerton,WA 98311-9431Tel: 360-692-9741Fax: 360-662-0384E-mail: [email protected]

REGION X Paul H. Carew(Kentucky, North Carolina, Tennessee,Virginia andWest Virginia)637 Fearrington PostPittsboro, NC 27312-8507Tel: 919-545-0297Fax: 919-545-0227E-mail: [email protected]

4 FEBRUARY 2009 | NARFE

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Two popular television game shows are theubiquitous “The Price Is Right” (which firstaired in 1956) and the brash newcomer,“Deal or NoDeal.” In each show, contestantshave to make smart choices to get the best

deal–in prizes andmoney.I was thinking about this as I recalled an

incident that took place a few weeks afterthe National Convention in September. Iwas speaking to a group of NARFEmembersand, after my prepared remarks, I asked, as Iusually do, if there were any questions. Iwas immediately asked about the failure ofthe resolution at the convention toimplement a “single dues,” or what I alwayscall “NARFE dues.” Under a “single dues,” asproposed at the National Convention, anadditional amount would be added to thecurrent national dues rate and paid by everyNARFEmember in lieu of individual chapterassessments. Each chapter would get back auniform amount; federations wouldcontinue to receive, as they do now, 10percent of dues collected frommembers intheir states. I pointed out that the resolutionhad only failed by a few votes short of therequired two-thirds majority, and I hopedthe subject would come up again.Before I could continue, another member

of the chapter spoke, pointing out that nearlyall of us belong to several other groups andassociations. Some are senior groups that do nothing toprotect and defend the rights of federal employees. Someare fraternal organizations that, while doing good worksthat we approve of within the community, do nothing tohelp us with our earned retirement benefits. And yet, forsome reason, somemembers rebel against this singledues arrangement.I know that some of our members do not like

mandatory chapter membership, but chapters must besupported by our dues–whether or not we attendmeetings–because that is where the grass-roots work isdone. We need and cherish those members who devotetheir time to acting as service officers and those who

work as legislative officers, maintaining the contact thatis so desperately needed at the local level with the staffsof our senators and congressmen. And these membersand their work will be more desperately needed thisyear as we learn more about “the perfect storm” that

Legislative Director Dan Adcock predictscould result in threats against ourentitlements. Chapter and federationofficers are a necessity to get informationout and encourage our members to act.I am always delighted when I attend

federation conventions or regionalconferences to see the interested, activemembers of our Association. They need oursupport and, in these troubled times, weneed the financial means to support them.Every one of us joined NARFE for a reasonand, usually, that reason is to protect anddefend our annuities and our healthbenefits.The dues we pay each year to NARFE help

support themonthlymagazine, which givesus a wealth of useful information on a varietyof topics and news about our Association; aLegislative Department that carries ourbattles to Capitol Hill; a Retirement BenefitsService Department that is always there tohelp when we have problems with healthbenefits or annuity payments; and themanyother services that NARFE provides foremployees, retirees and their families. Your

NARFEmembership provides you with instant e-mail orphone access to Headquarters’ staff, who are ready toassist you with your problems.We can all make our own priority lists, but I cannot

believe that protecting the benefits we have isn’t close tothe top. It is onmy list. Where is it on yours?

The Price Is Right

AMessage From theNational President

Margaret L. [email protected]

CHAPTERSmust be

supported byour dues

because that iswhere thegrass-roots

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TheOffice of PersonnelManagement (OPM), responding

to concerns lodgedbyNARFE and a congressional sub-

committee, announced December 16 that it had

reached an agreement with Blue Cross/Blue Shield

(BC/BS) on revised 2009benefits for nonemergency surgical procedures

provided by out-of-network physicians. OPMsaid it will allow “belated”

Open Season enrollments/changes that stem from this policy change.

� ANovember 2008 reportby theGovernmentAccountability Office showedthat the presence of womenandminorities in the SeniorExecutive Service increasedbetweenOctober 2000 andSeptember 2007. Thepresence of women grewalmost six points to29 percent;minorities rosefrom 13.9 to 15.8 percent.

�Until 1971,GeorgeWashington’s birthday wascelebrated with a federalholiday on his actual birthday,February 22. When thefederal holiday wasmoved tothe thirdMonday in February,it became commonly knownas Presidents’ Day.Despitethe date change,however,theofficial name of the holidayremains“Washington’sBirthday.”

LEGISLATIVE HOTLINEToll-free! (24 Hours):877-217-8234Legislative Action Center:www.narfe.org

The OPM action followed a De-cember 3 hearing before the HouseSubcommittee on the Federal Work-force, Postal Service andDistrict of Co-lumbia that highlighted a majorchange in the BC/BS Standard optionplan’s 2009benefits for out-of-networksurgical procedures. BC/BS is thelargest provider in the FEHBP, coveringnearly half of all enrollees. NARFEwasamong those expressing concern.After the hearing, Subcommittee

Chairman Danny Davis, D-IL, an-nounced that OPM would work withFEHBP carriers “to take a second lookat how to address the payment of sur-gical claims billed by nonparticipatingproviders” and that OPMwould allowenrollees citing the change to file a “be-latedOpen Season enrollment/change.”

To file the belatedOpen Season enroll-ment/change, current employees shouldcontact their human resources office; re-tirees and survivors should call OPM at800-332-9798 before January 31.

THE BENEFITS AT ISSUEAsoriginally planned and explained

in theDecember 2008 issue ofNARFEmagazine (pp. 37-38), federal workersand annuitants enrolled in BC/BS Stan-dard option in 2009 would have beenresponsible for paying 100 percent ofthe billed amount for nonemergencysurgery performed by out-of-networkphysicians, up to $7,500 per procedureper day.Under the 2008plan, Standardoption enrollees paid 25 percent ofwhat BC/BS set for a procedure, plusany difference between that and thebilled amount. BC/BS’s definition of“surgery” includes the treatment offractures and dislocations, includingcasting; biopsy procedures; removal oftumors and cysts; treatment of burns;obstetrical care, including childbirth;and diagnostic colonoscopy and otherendoscopic procedures.

Benefits for enrollees with MedicarePart B as their primary payer will con-tinue to be provided in the samemanner

LEGISLATIVEREPORT

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THE REVISED BENEFITSUnder the revised2009benefits announcedDecember16,

individuals enrolled inBC/BSStandardoptionwill pay30per-centofBC/BS’s allowance fornonemergency surgery (subjectto the calendar-year deductible) plus the difference betweenthe allowance and the amountbilled. To avoidunexpectedlyhighbills fromnonparticipatingproviders, enrollees cancon-tact BC/BS to obtain the necessary information to estimateout-of-pocket costs. This service is available if the surgeon’sbill will be $5,000 ormore.During Open Season, the insurance carrier clarified that

if Standard option enrollees receive surgery fromanout-of-networkphysiciandue to amedical emergency, enrolleeswillpay 30 percent of the plan allowance, subject to the cal-endar-year deductible, plus any difference between thephysician’s bill and the plan allowance, up to $5,000. Simi-larly, for surgery related to and performed within 72 hoursof an accidental injury, enrollees are only responsible for thedifference between the plan allowance and the amountbilled, up to a maximum of $5,000. The December 16 an-nouncement does not change these benefits.Under the revisedbenefits announcedDecember16, out-

of-network surgical procedures will be included in cata-strophicprotection.Catastrophicprotection is themaximumout-of-pocket expenses that an enrolleewill have to pay in adetermined amount of time, usually a contract year. TheBC/BS 2009 nonpreferred provider limit is $7,000.

HOW THE CHANGE CAME ABOUTThe initial BC/BS policy change came about whenOPM,

concernedwith thenumberof complaints received fromen-rollees facing disproportionately high bills as a result of “bal-ance billing,” asked BC/BS to review its fee schedule for out-of-network surgical procedures for the 2009 plan. Balancebilling occurs when patients visit out-of-network providerswho chargemore than the insurance provider’s allowance.The insurance provider pays its obligation, leaving the re-mainingbalance for thepatient. Fornonemergencysurgeries,this balance can be tens of thousands of dollars.While OPM estimates that less than 3 percent of sur-

geries are performedby out-of-network providers, the costscan have an impact on the insurance providers and the en-rollees. Patients visiting in-network or preferred providers isa cost-containment measure for the carriers, which alsohelps to control the growth of premiums paid by the gov-ernment and enrollees. Visiting in-network providers also

allows patients to know their costs up front. Out-of-pocketexpenses for out-of-network physicians are usually notknown until the services are rendered.OPM’s solutionwas to develop a co-payment thatmem-

bers would be responsible for when procedures were per-formedbyout-of-network surgeons. It wasOPM’s intentionthat a co-payment would allow patients to know the costsin advance, and the co-payment would be high enough toact as an incentive to visit in-network doctors, thus also per-mitting the insurance company to control costs.However, the amount initially proposed by BC/BS, to-

getherwith theper-doctor, per-day requirement, opened thepossibility that some enrollees would face costs in the tensof thousands of dollars, resulting inwhatOPMwas trying toeliminate altogether. A patient facing several surgical proce-dures that cost less than $7,500 could easily see high bills.By so severely changing theout-of-network surgical ben-

efit, BC/BS drastically reduced a patient’s choice regardinghis or her provider. As a fee-for-service plan, BC/BS enrolleespay a higher premium so that they can be reimbursed forseeing an out-of-network provider, unlikewithmost healthmaintenance organizations. “Everyone deserves the bestpossible care, and that includes having an affordable optionto go out-of-network,” NARFENational PresidentMargaretL. Baptiste said prior to the December 3 hearing.

HEARING HIGHLIGHTS OTHER CONCERNSThehearing also addressedother concerns, including the

appearanceof a lackofoversightbyOPM,asplanning for the2009OpenSeasonbegins.Alsocriticizedwere the small printin plan brochures and the lack of consistency in language,whichmake it difficult for FEHBP participants to compareplans. Insurance providers count on the loyalty of enrollees;yet, it is that same loyalty that often results in current en-rollees not closely examining the details of plan changes.Nancy Kichak, OPM’s associate director for strategic

human resources policy, testified at the hearing that OPMis working on improving communication with employeesand retirees about their benefits.NARFE salutes OPM for its decision to allow belated

Open Season enrollment and forworkingwith BC/BS to re-store the cost-sharing benefits for which BC/BS is known.As Rep. Davis noted at the hearing, FEHBP is often held upas the gold standard of employee-sponsored health pro-grams.Working with the subcommittee, NARFE continuesto guarantee that federal benefits will remain competitive,innovative and amodel for other employers to follow.

By Sarah Holstine,Legislative Specialist


LegislativeReport

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LegislativeReport


T hirteen national federal and postal organiza-tions, led by NARFE, sent a joint letter on No-vember 14 to President-elect Barack Obamaurginghim to exercise his authority “to instruct

theOffice of PersonnelManagement (OPM) to apply for theMedicare employer payment,”which couldbeused to lowerpremiums, enhance plan coverage andhelp contain the amount the federal gov-ernment—as an employer—as well as fed-eralworkers and annuitants pay for FederalEmployees Health Benefits Program(FEHBP) premiums.Under the Medicare Modernization

Act (MMA) of 2003, employers are eligibleto receive a payment if they provide theirretired workers with a prescription drugbenefit that is at least as generous as the Medicare Part Dprogram. The provisionwas added to the bill by its authorsin response to concerns that employers would react to thecreation of the Medicare Part D prescription drug benefitby reducing or eliminating their own retiree drug cov-erage. At NARFE’s urging, then-Rep. Nancy Johnson, R-CT,included language in theMMA that clarified that the fed-eral government–as an employer–would be eligible for thepayment.At no point during the consideration of MMA did the

Bush administration oppose including the federal govern-ment among the eligible employers. While OPM and theCenters forMedicare&Medicaid Services (CMS) staffmadepreparations in 2004 to receive the employer payment onbehalf of the FEHBP,OPMannounced in theApril 19, 2005,“call letter” to FEHBP insurance carriers that it would notapply for the payment. As a consequence of this action, theU.S. Postal Service alsowas foreclosed fromapplying for theemployer subsidy.A December 2006 Government Accountability Office

(GAO) study, requested by Sen. Daniel Akaka, D-HI, foundthat premium growth in one of the largest FEHBP planswith a high share of older enrollees could have been 3.5 to4 percent lower in 2006 had the payment been obtained.Additionally, the payment would have lowered the growthin premiums across all FEHBPplans for 2006 bymore than

2 percentage points on average, from6.4 percent to about 4percent. GAO also found that future FEHBP premiumswould be more sensitive to drug cost increases than pre-miumsof other large private andpublic employer plans thatreceive the retiree drug payment. CMSmakes the paymentto employers on an annual basis. To date, OPMhas forgone

four payments, which could have lowered FEHBP costs bymore than $4 billion.TheNovember 14 letter to President-electObamaon the

Medicare employer payment issue was signed by NARFEand the American Federation of Government Employees,the American Foreign Service Association, the AmericanPostal Workers Union, the Federal Managers Association,the International Association of Fire Fighters, the NationalAssociation of Letter Carriers, the National Association ofGovernment Employees, the National Association of Post-masters of theUnited States, theNational Federation of Fed-eral Employees, theNational League of Postmasters, theNa-tional Rural Letter Carriers’ Association and the NationalTreasury Employees Union.

TRANSITION TEAM TALKSIn December, NARFE Legislative Department staff fol-

lowed up on the letter by meeting with representatives oftheObamaPresidential Transition staff on theMedicare em-ployer payment issue and other top Association priorities.In addition, Rep. Chris Van Hollen, D-MD, urged key

transition staff in December to recommend to Obama thathe apply the Medicare payment to offset FEHBP plan pre-miums. Sen. Akaka included the same request in a letter hesent to the president-elect in November.

By DanAdcock,Legislative Director

NARFE Leads Effort to ObtainEmployer Drug Payment for FEHBP

IN DECEMBER,NARFE LegislativeDepartmentstaff metwith representatives of theObamaPresidentialTransition staff on theMedicareemployer payment issue and other topAssociation priorities.

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The NARFE Legislative Department is closelywatching events as they unfold at the WhiteHouse and onCapitol Hill for early indicationsof the shape that promised health care reform

will take–and its potential effects on the Federal EmployeesHealth Benefits Program (FEHBP). At our deadline, here aresome of the recent actions in the health care arena.• Prior to assuming office, President-elect BarackObama

nominated former SenateMajority Leader TomDaschle, D-SD, as thenextHealth andHumanServices (HHS) secretary.Daschle will serve concurrently as director of a newWhiteHouseOffice ofHealth Reform.Hewill be joined by JeanneLambrew, who will serve as deputy director of the office.Currently a senior fellow at the Center for AmericanProgress, Lambrew previously worked on health policyduring the Clinton administration and recently co-wrotewithDaschle a book titledCritical,which focuses onhealthcare reform.• While few concrete details and no cost estimates have

yet emerged about the Obama health care proposal, thepresident-elect asserted that “health care reform is needed”and that itmust be an intrinsic part of the overall economicrecovery plan. The president-elect also revealed in the pressconference held in mid-December to announce Daschle’sselection that he planned to focus on “better health infor-mation technology (HIT) and disease prevention programsas ways to cut costs from the system.”• Congressional Democrats, notably Sens. Edward M.

Kennedy, D-MA, andMax Baucus, D-MT, and Reps. HenryWaxman, D-CA, Charles Rangel, D-NY, and Pete Stark, D-CA, have begun to outline varioushealth care planswith anaim to including suchprovisions in amultibilliondollar eco-nomic stimulus package that lawmakers hoped to completein early January. Increasingly,Obama transition staff andDe-mocrats on Capitol Hill maintain that steering significantamounts of money into health care programs will not onlyprovide a needed boost to the economy but will also allowthe incoming president to make good on campaign prom-ises to the American public of broader health care reform.So far, the various outlines reveal HIT to be a common pri-ority item.• Unlike the earlier Clinton administration health care

plan, which at various stages included eliminating theFEHBP and later opening up the federal health plan to allAmericans, candidate Obama was quite clear that he hadno plans to disrupt existing employer-sponsored health in-surance, including the FEHBP. In response to NARFE’spresidential candidate questionnaire published in the No-vember 2008 issue of NARFEmagazine (pp. 10-17), theObama campaign stated: “Barack Obama’s health careplan would maintain FEHBP’s current structure andwould not affect its cost structure or benefit package. In-stead, the Obama planwill create a new, separate nationalhealth exchange that will allow individuals without accessto affordable insurance coverage...to buy affordable healthcoverage.” When asked directly, “Would the FEHBP con-tinue to provide health care coverage to its eight millionparticipants in the program’s current form, under yourhealth care reform proposal?” the Obama response was aplain and unequivocal “yes.”

NARFE WILL CONTINUE VIGILANCEDespite the fact that the new president is not aiming to

disrupt the existing FEHBP structure, NARFE will be mon-itoring all developments regarding health care reform onCapitol Hill.At present, proposals are gaining momentum, will be

introduced in Congress as bills or amendments, and willbe debated both on Capitol Hill and in the press. Con-gressional Democrats are hoping for a speedy process andare focused on: creating a public plan that will coexist withprivate insurance plans, promoting the use of HIT in bothpublic and private plans, increasing funding for stateMed-icaid programs and reauthorizing the State Children’sHealth Insurance Program (SCHIP). Congressional Re-publicans will seek to help shape this reform package, aswill the health care industry (physicians, hospitals, diseaseorganizations, to name a few), employers and the insur-ance industry.NARFE is working to ensure that the health and income

security currently provided to federal employees and re-tirees by the FEHBP ismaintained in the face of coming at-tempts to alter the nation’s health care system.

By Jill Crissman,Assistant Legislative Director


An Eye on Health Care Reform andIts Potential Effects on FEHBP

LegislativeReport

NARFE | FEBRUARY 2009 15

Many federal retirees and employees are, un-fortunately, all too familiar with two provi-sions of the Social Security Act that caneliminate or significantly reduce their Social

Security benefits. BasedonOffice of PersonnelManagement(OPM) data, roughly 600,000 Civil Service RetirementSystem (CSRS) workers, representing about 25 percent ofthe overall current federalwork force, will likely be affectedonce they retire. Someof the 1.9million Federal EmployeesRetirement System (FERS) employees alsomay be affected.In addition, even greater numbers of state and local gov-ernment retirees andworkers feel the impact of the offsets,including teachers, police, firefighters, and state and countyworkers.

GOVERNMENT PENSION OFFSET (GPO)CSRS annuitants eligible to retire after December 1982

cannot collect full spousal Social Security benefits. Inmanycases, the GPO will eliminate any potential spousal SocialSecurity benefits; but, in some cases, a significantly reducedSocial Security benefit will still be received. FERS retirees arenot affected by the GPO.As of 2007, the Social SecurityAdministration reports that

approximately464,537 individualswereaffectedby theGPO,or 1 percent of the total number of Social Security benefici-aries. Seventy-five percent of affected individuals lose theirentire spousal Social Security benefits; the averagemonthly

Roundup of GPO and WEP Data

Social SecurityBeneficiariesAffectedbyGPOandWEP

The chart below lists the number of GPO- andWEP-affected individuals by state, including federal, state andlocal government retirees.TheGPO figures are as of June 2007;theWEP figures are as of December 2006.The

informationwas compiled and reported by the Congressional Research Service of the Library of Congress.

Affected AffectedbyGPO byWEP

Alabama 3,920 13,477Alaska 1,772 4,600Arizona 5,905 17,579Arkansas 2,674 7,788California 68,297 120,458Colorado 15,434 27,957Connecticut 5,747 8,742Delaware 415 2,191DC 2,616 5,995Florida 19,766 56,471Georgia 11,891 27,497Hawaii 1,804 6,214Idaho 1,239 4,147Illinois 31,495 49,565Indiana 3,760 9,805Iowa 1,677 5,712Kansas 1,909 6,100Kentucky 7,170 12,283Louisiana 21,929 18,299Maine 4,585 8,644Maryland 8,043 30,674Massachusetts 22,436 32,140Michigan 4,691 12,139Minnesota 5,657 12,114Mississippi 2,369 6,624Missouri 9,847 20,342Montana 940 3,545

Affected AffectedbyGPO byWEP

Nebraska 1,106 3,664Nevada 5,569 12,230NewHampshire 1,565 4,326New Jersey 4,212 14,984NewMexico 2,790 8,428NewYork 7,732 21,889North Carolina 5,621 17,855NorthDakota 437 1,810Ohio 64,808 70,599Oklahoma 3,360 12,397Oregon 3,559 9,643Pennsylvania 7,386 23,640Rhode Island 1,345 3,017South Carolina 3,484 11,114SouthDakota 764 2,645Tennessee 4,617 12,642Texas 51,826 80,990Utah 2,031 8,556Vermont 545 1,715Virginia 7,250 32,442Washington 4,707 18,575WestVirginia 1,104 4,305Wisconsin 2,947 8,028Wyoming 430 1,620Outlying areas/ 6,057 53,094foreign countriesTOTAL 464,537 971,310

Continued on p. 16

LegislativeReport


loss in benefits is $459. Seventy-seven percent of those af-fected arewomen; 43 percent arewidows orwidowers.

WINDFALL ELIMINATION PROVISION (WEP)CSRSannuitants eligible to retire in January1986are sub-

ject to an alternative Social Security benefit calculationprocess that reduces, butdoesnot eliminate, the final benefit.As of 2007, approximately one million individuals were

affected by the WEP. For 2009, the most that can be losteach month is $372 ($4,464 a year). Sixty-five percent ofthose affected aremen. FERS employeeswho switched fromthe CSRS will be affected by the WEP once they retire, aswell as any who also receive a foreign pension.NARFE’s Legislative Program for the 111th Congress

(2009-2010) states that “NARFEsupports the repealor reformof the GPO andWEP.” NARFE’s advocacy efforts seeking ac-tionon theGPO-WEPcontinue.Atpress time, itwasexpectedthat Sen.DianneFeinstein,D-CA, andReps.HowardBerman,D-CA, and “Buck”McKeon,R-CA,wouldagain introduce leg-

islation to repeal these provisions. In addition to repeal, a va-rietyof legislatorshave longpushed legislation tomodify theGPOandWEP to provide federal and other public-sector re-tirees higher Social Security benefits than they now receive.NARFE founded and chairs a coalition of public-sector

worker and retiree groups that advocates for GPO-WEP re-lief. This group, the Coalition to Assure Retirement Equity(CARE),met in January to plot legislative action for the newCongress and to discuss strategy with the new administra-tion. As an Illinois senator, President Barack Obama sup-ported repeal legislation, and Illinois is a state that has sig-nificant numbers of state and local government retireeswhoare affected by theGPOandWEP.His campaign’s responseto NARFE’s Presidential Candidate Questionnaire questionon the GPO-WEP (seeNARFEmagazine, November 2008,p.17) was: “BarackObama has andwill continue to supportrepealing theWEP and the GPO. He is a cosponsor of theSocial Security Fairness Act (repeal legislation)….Wehave aresponsibility to take care of workers who have devotedtheir lives to public service.”

By Jill Crissman,Assistant Legislative Director

The deadline to register for the 2009NARFE Legislative Training Confer-ence is February 10. This is also thedeadline to guarantee a hotel reserva-

tion at the conference hotel. The LegislativeTrainingConferencewill be held Saturday,March 7,through Tuesday, March 10, at the Hyatt Regency CrystalCity in Arlington, VA.As the president and Congress confront “the perfect

storm”with amandate to change politics as usual, NARFE’sadvocacy andgrass-roots effortswill be as important as ever.This biennial conference is an opportunity forNARFEmem-bers to develop advocacy and grass-roots skills whilelearningmore aboutNARFE’s legislative agenda and the po-litical process.All NARFEmembers arewelcome to attend, but chapter

and federation leaders and legislative activists who havenever attended before are particularly urged to attend. Oneperson per congressional district would be ideal, especiallycongressional district liaisons who already are invested in

organizing by congressional districts. Federation 10Percent Funds should beused to defray someor allof the costs of aspiring and potential leaders.The Legislative TrainingConference hotel room

ratewill be $159, plus 10.25 percent state and localoccupancy tax, for a total of $175.30 for both single-

room and double-room occupancy. The conference regis-tration fee is $150. This fee includes three full breakfasts,two full lunches and one full dinner.The registration form and conference details are posted

on theNARFEWeb site at www.narfe.org. You can registerdirectly by filling out and mailing in the registration formon the opposite page. Don’t forget to make your roomreservationwith theHyatt Regency Crystal City by calling800-233-1234 or 703-418-1234. NARFEmembers shouldbe sure to specify that their room is part of the NationalActive and Retired Federal Employees Association’s Leg-islative Training Conference at the Hyatt Regency CrystalCity.

By Sarah Holstine,Legislative Specialist

Legislative Training Conference RegistrationDeadline Coming Up on February 10

Continued from p. 15

March 7-10, 2009

Registration FormName: �Mr. �Mrs. �Miss �Ms. Membership # __________________________

_______________________________ ________________________ _________________________Last First Middle

Nickname (if any) for 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: _______________________________________________________________________________

Please complete registration form andreturn with check made payable toNARFE, or charge to your credit card.

Mail to:NARFE Conference, Budget & Finance606 North Washington St.Alexandria, VA 22314-1914

� Charge to my credit card $____________� MasterCard � Visa � Discover � AMEX

Card # ____________________________________________

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

Name on card (print) ________________________________

Signature_________________________ Date ____________

Registration must be returned by Feb. 10, 2009

$150 registration fee is not refundable.

Please Note: Conference meals and events arefor registered attendees. Registered attendeesmay bring guests to NARFE-provided meals fora separate fee.

Will you have a guest(s) (who is not registering)attend any meals? � Yes � No

Name of Guest(s)____________________________

____________________________________________

Please add the amount of $150 per guest toyour registration check or charge.

For Internal Planning Purposes Only--This is Not aReservation.

Do you plan to ride the NARFE-provided bus toCapitol Hill on March 10? � Yes � No

Do you plan to return to the hotel from Capitol Hillon the bus later that afternoon? � Yes � No

Desired Return Time:*� 12:30 p.m. � 2:30 p.m. � 3:30 p.m.

*These times will not necessarily be offered.

For complete conference details, including hotel registrationinformation, go to www.narfe.org, click on Legislation.

LegislativeReport


Vacation travel (pp. 20-23) is a fineway to spendpart of your income, but civic travel is the bestway to protect your hard-earned income andhealth security. Civic travel is travel between

where you live and the local offices of your congressionalrepresentative and two senators. Civic travel is best done asa group, by appointment, but it also is effective when it isdone by an individual citizen with or without prior notice.

WHEN TO GOThe Association will be conducting the biennial NARFE

Legislative Training Conference from Saturday, March 7,throughTuesday,March 10, inArlington, VA (register to at-tendusing the formonp. 17).March10will beNARFE’sDayon the Hill. For those not attending the conference, con-ducting visits to district and state offices on March 10 willdemonstrate to members of Congress and their staffs thatNARFE is an authentic constituent group. However, goingat any time that is convenient for you is a powerful tool ofcivic engagement.

MORE OFFICESMembers of both chambers of Congress keep more of-

fices than ever before. Twenty years ago, it was not un-common for a senator to have his or her only office in thestate capital or largest city. Now, senators staff an average of4.7 offices in their state, and only six have just one office.House districts are smaller. But even urban representativesserving relatively compact districts choose tomaintainmul-tiple offices to be near their constituents. In fact, 310 repre-sentatives havemore than one district office. One,who justretired, had eight.

FINDING YOUR WAYThere are many sources of information about where

your congressional delegation has its offices:1. NARFE’s revamped Web site, www.narfe.org, places

our Legislative Action Center (LAC) in the middle of thehomepage. TheNARFEWeb link (www.narfe.org/visit) andthe Legislative Action Center have a sample letter you canuse to request ameeting, and the LACprovides full contactinformation for district offices.2. Use the NARFE toll-free number, 866-220-0044, to

reach theU.S. Capitol switchboard and ask formembers byname or supply your ZIP code.3. Your local telephone directory’s blue pages for federal

government will have listings under Congress, House orSenate.4. Phone (703-838-7760) or e-mail your NARFE Legisla-

tive Department ([email protected]). If you promise to make avisit, sendme ([email protected] or 571-483-1265) your ad-dress; Iwill sendyouamap, drivingdirections and a staff listto your delegation’s closest offices.

CONGRESSMERGE.COMThe offer above is not as generous as it seems because a

strongly recommendedWeb site, www.congressmerge.com,provides easy access to a U.S. map (www.congressmerge.com/onlinedb/index.htm)where you can click onyour statefor a complete list of your state’s congressional delegation.Congressmerge.com provides street-level Google® mapsanddriving directions. Furthermore, your visit and all othergrass-roots action make your professional lobbying teammuchmore effective.

OFFICE TOO FARIf you are wondering how far, how long or how costly

your congressional visit will be, I can tell you that it is lessthan a cost-of-living allowance delay or higher federalhealth insurance plan premiums. Civic travel will pay im-portant dividends.

STICK TO NARFE’S AGENDAIf you go as a group, select a spokesperson and stick to

NARFE’s agenda. Talking points similar to those thatwill beprovided to persons attending the Legislative TrainingCon-ferencewill be posted onourWeb site by late February.Our111th Congress (2009-2010) Legislative Program (see Jan-uary issue of NARFE magazine, pp. 14-17), adopted byNARFE convention delegates in Louisville, is available onour Web site. Provide a copy to your lawmaker ahead oftime, perhaps in the request or confirmation letter. Takecopies of NARFEmagazine to leave with whomever youmeet with. Also take a group photo and send us a copy forpossible use in the “Out & About” section of themagazine.

By Christopher Farrell,Legislative Representative

Civic TravelT H E I N F O R M E D C I T I Z E NC I V I C S 1 0 1 :

* The free night is based on an 8,000 point Choice Privileges reward night level. Bonus points will be added to points earned from every two qualifying stays at eligible rates with arrival between Feb. 5 and April 30, 2009, to reach the 8,000 point reward level; however if both stays are at Choice’s 5 points per dollar earning brands(MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, Rodeway Inn), only enough bonus points will be added to reach the 6,000 point reward night level. Members may use bonus points for a free night at our hotels, recognizing the 6,000 or 8,000 point award level, as applicable, or may be applied toward a higher award level. Although members can redeem 6,000 points for a free stay at many of our hotels, the majority of our hotels require a higher award level. Qualifying stays at Ascend Collection hotels are also eligible for this offer.Choice Privileges number must be provided upon check-in for the stay to be eligible. A stay is defi ned as any number of consecutive nights at one hotel regardless of check-ins or check-outs. Allow 72 hours from check-out for points to post to your account. You must maintain an address in the U.S. (including U.S. territories), Canada or Mexico to be eligible for this promotion. For program details, eligible rates and point redemption rules, visit choiceprivileges.com.

© 2009 Choice Hotels International, Inc. All rights reserved. 08-954/12/08

o you say you’re planning to vacation in the backyard this year?Thatafterpaying for food,clothes, lodgingandmedicalexpenses,you simply can’t afford to travel?

Think again. Despite the dismal economy—and in some cases, because of it—there still are bargainsto be had in transportation, accommodations, meals and attractions. And you don’t have to be an In-ternet whiz to find them—although becoming familiar with a few comparison-shopping and discount

sites will help you snag the best deals.I know. When I retired last summer as travel editor of The Washington Post, I had to face the cold reality of globe-trot-


Tips on Snagging the BestTravel

S

YOUCANAFFORDTO

TRAVEL

So it’s not up there in thetourist stratosphere with

NewYorkCity.It’s rich in history,museums andmarkets,and the restau-rant scene is red hot–at a fraction of the cost of the BigApple.


ting on my own dime. But I wasn’tabout to stop gallivanting. To me,travel is as essential as oxygen—it’s howI stay sane, learn new things, have funand keep life in perspective. Luckily,I’ve remembered a few tricks of thetrade.

So here are my tried-and-truebudget tips to help you plan your ownhard-won getaway. Some are basic but

are so important that they bear re-peating; others are insider tips gleanedfrom years of reporting and writingabout the industry. To further inspireyou, I’ve provided a list of some rela-

tively affordable destinations (above).

BEFORE YOU GOANYWHERE …

• Sign up for airline and hotel loy-

FivePlaces toGoRightNowIf you’re hankering for cathedrals andcobblestone streets,think beyond Paris andRome and head for less-discovered capitals like

Ljubljana,Slovenia;or Riga,Latvia.Lots of OldWorld charm at afford-able prices.

The plunging Canadian dollarmeansAmericans can finally get theirmoney’s worth visiting our neighborto the north.

You get the picture.These touristy islanddestinationsmay be thoroughlyAmericanized,but all-inclusive

package deals there represent realvacation bargains–andwho cares

about culture when the swim-up bar beckons?

Airfare can be expensive,but once you’re there,the lodging,dining,shopping and recre-ational opportunities in countries like

Ecuador,Chile,Brazil andArgentina are jaw-droppingly affordable.—K.C.S.

Deals

By K.C. Summers

EASTERNEUROPE

CANCUNPUNTACANANASSAUSAN JUAN…

SOUTHAMERICA

CANADA

PHILADELPHIA

Photo credits,p.21,top to bottom:Banks of the Ljubljanica River,Ljubljana,Slovenia,J.Skok;ParliamentHill,Ottawa,Ontario,Canada,OttawaTourism;Benjamin Franklin at Elfreth’sAlley,B.Krist for theGreater PhiladelphiaTourismMarketing Corporation; ChubCay, Berry Islands,The Bahamas,The BahamasMinistry of Tourism;weaving sombrero,Ministry of Tourism ofEcuador.

alty programs. Virtually every airlineand hotel chain has one, allowingmembers to exchange miles or pointsfor free flights, rooms, or gift certifi-cates for restaurants or attractions.Even if you aren’t a frequent traveler,you’ll become instantly eligible for spe-cial offers and deals available only tomembers. The cost to join: not a cent.

• Keepa running file of ideas. Nowwhat was the name of that affordablelittle B&B on the Oregon coast that youread about in The New York Timestravel section last summer… or was itTravel + Leisure? Clip and save travelarticles that offer budget tips on hotels,restaurants, museums and attractions.When it’s time to make reservations,you’ll be glad you did.

• Read the right guidebooks.Guides geared to the younger crowdspecialize in ferreting outbudget lodgings, afford-able eateries, even freeactivities. (Just ignoretheir tips about clubbing.)The Let’s Go, Lonely Planet,Moon, Shoestring, RoughGuides and Rick Steves’ seriesare especially well-researched.For large cities like New York andLondon, Time Out is invaluable.

• Don’t forgetmagazinesandnews-paper travel sections. Budget Travelmagazine (on newsstands and atwww.budgettravel.com) specializes infrugalvacationingwithattitudeandhasahandy roundupofpackagedeals eachmonth. The Washington Post’s weekly“What’s the Deal?” column (www.washingtonpost.com/travel) is anothergood source for vetted deals and dis-counts.

CHOOSING ADESTINATION

• Know when to go. It’s no secretthat during high season or times of keyevents, prices are the worst: New YorkCity at Christmastime, New Orleans

during Jazz Fest, the Caribbean in thedepths of winter. So be flexible and ad-just your plans accordingly. But thatdoesn’t mean you have to visit duringabsolute low season: The shoulder sea-sons of spring and autumn also offergood deals and fewer crowds. NewYork hotel rooms and Broadway playscost much less in January and Feb-ruary; the Caribbean sun is just aswarm in April as it is in December.

• Workbackward. Instead of tryingto find a sale fare to your dream desti-nation, watch the sales and visit a placethat hadn’t previously occurred to you.A two-for-one cruise offer may haveyou rethinking that venue for yourfamily reunion; a Virgin America dealto Los Angeles may be the excuse youneed to finally visit Disneyland. Siteslike Airfare Watchdog (www.

airfarewatchdog.com) andKayak.com (www.kayak.com) let you seecurrent deals fromyour departure city.

• Think package deal. There aresome incredible bargains out therefrom companies that bundle airfareand hotel fees into one money-savingprice. I bought an air-hotel package toLondon from a company called GoToday (800-227-3235, www.go-today.com) that cost me less than the priceof the flight alone, if I’d booked thecomponents separately. Just be sureyou do the math to make sure the tripreally is a deal. A few other companiesto check: Apple Vacations (800-517-2000, www.applevacations.com),CheapCaribbean.com (800-915-2322,www.cheapcaribbean.com), FareDeals (800-347-7006, www.faredeals.com), Foreign Independent Tours(800-248-3487, www.fittours.com),Funjet Vacations (888-558-6654,www.funjet.com), Vacation Express(800-309-4717, www.vacationexpress.com), TourCrafters (800-621-2259,www.tourcrafters.com), Ritz Tours(888-345-7489, www.ritztours.com),Vacation Outlet (800-TAKEOFF, www.


Ways toMakeAnyTripMoreAffordableFindoutwhere thegas is cheapest,bothon the roadandat yourdestination,

with AAA’s Fuel Price Finder (www.aaa.com) or GasBuddy.com (www.gasbuddy.com).Search for airfares well before your trip date and be prepared to pounce

when the price is right. The days of last-minute deals are pretty much over;now, it’s all about planning. Consider using a site like Farecast.com(www.farecast.com) to track high and low fares between city pairs.When booking a hotel, ask about hidden surcharges, such as resort fees,

extra charges to use the in-room safe ormake local phone calls,even house-keeping fees. Anddon’t even think about snacking fromtheexorbitantly pricedminibar;stock up at a nearby grocery or liquor store for a fraction of the cost.Take advantageof freebies and special deals offeredby city and state tourismoffices (for a list of offices and their contact information,seeTourismOffices

WorldwideDirectory atwww.towd.com). Virginia’sWeb site,for example,hasa “Hot Deals and Promotions” section with offerings ranging from a dis-counted senior getaway inNelsonCounty to a two-daySkylineDrive cabin ad-venture (www.virginia.org).

Save money at mealtime by staying at a hotel that offers free breakfast.Theneat yourmainmeal at lunchtime,when restaurant prices are a fraction

of what they are at dinner,and snack at dinner. —K.C.S.

vacationoutlet.com).• Follow the news. It sounds ruth-

less and it is, but these are desperatetimes. Take note of where the economyis currently tanking, andgo there. Rightnow, for example, deals abound in Ice-land. Formerly considered one of theworld’smost expensivecountries, itwasespecially hard-hit in the global finan-cial crisis,with its currency losinghalf itsvalue. Bad news for Icelanders—but fortravelers, food and lodging prices are fi-nally affordable. Current financial woesin Argentina and Canada mean similardeals for visitors.

AIRLINE TICKETS• Be flexible. I know. I already said

that. But it’s especially importantwhen booking airfares because you’llfind the cheapest fares if you’rewilling to fly out of regional airports,choose very early or very late flights,take connecting flights and adjustyour schedule to avoid popular traveldays. So forget that Friday afternoondeparture: Generally speaking, try tobook on a Tuesday, Wednesday orSaturday.

• Beon thealert. Travel to the samedestination a lot? Sign up for SouthwestAirlines’ Ding (www.southwest.com),Expedia’s FareAlert (www.expedia.com)and Orbitz’s Insider Deals (www.orbitz.com), which notify you whenthere are sales to the cities you’ve re-quested.

• Comparison shop. Check a travelaggregator site like Sidestep (www.sidestep.com) or Kayak.com (www.kayak.com), which examine multiplesites for the cheapest fares. Still, it never

hurts to check sites like Expedia.com,Travelocity.com and Orbitz.com onyour own for any specially brokereddeals. And don’t forget individual air-lines, since many offer their own deals,available only on their sites. You canfindgoodpackagedeals, for example, atCathay Pacific (www.cathaypacific.com), BritishAirways (www.baholidays.com) and Austrian Airlines (www.austrianair-vacations.com).

LODGING• When you reserve a hotel room,

keep in mind that some days of theweek are cheaper than others. LasVegas, for example, is inundated withvisitors on weekends, so time your visitfor midweek, when rooms go for muchless. But if you’re going to New York,the opposite is true: You’ll score betterdeals on weekends, when the businesstravelers flee.

• The Internet is your friend. Com-parison shop at dedicated hotel dis-count sites such as Hotels.com(www.hotels.com) and Quikbook(www.quikbook.com), which offer con-sistently good deals. And don’t forget“reverse-auction” sites like Price-line.com and Hotwire.com, where yousacrifice flexibility but can find rock-bottom rates. On the other hand…

• Call the hotel directly. Managersoften will match rates found online,and they can offer on-the-spot dealsbased on availability. It can be a bitnerve-wracking, but the later in theday you call, the better your chances offinding a deal.

• Consider staying in the suburbs,where hotel rates are much less than

in the center city–or even out of state(really, New Jersey hotels are highlyunderrated). But don’t forget to factorin transportation costs and the time itwill take to get in and out of town.

• Considera short-termapartmentrental insteadofahotel. In Europe, es-pecially, you can save hundreds of dol-lars by forgoing bellmen and maidservice. Some companies to try: VillasInternational (www.villasintl.com),Rentvillas.com (800-726-6702, www.rentvillas.com) and Homes Away (800-374-6637, www.homesaway.com).

• Rentvacationpropertiesdirectlyfrom owners. You’ll want to quiz saidowners, check references and inspectphotos carefully, of course. But ratesare generally cheaper than at hotels,and you can save money on eating outby preparing meals in “your” kitchen.Try CyberRentals (www.cyberrentals.com) or Vacation Rentals by Owner(www.vrbo.com).

• Consider a house-swap. Yes, ittakes a certain kind of person to en-trust his or her home to a perfectstranger, but then again, your swap-eeis making the same leap. Three rep-utable sites: HomeExchange.com,HomeLink.org and Intervac.com.

GOT THE IDEA?Remember that travel is all about

connecting—to people, to other cul-tures, to your own less-harried self.You don’t need a five-star resort or agourmet meal to do that. You do haveto be flexible, do your trip-planninghomework and be willing to compro-mise on creature comforts. If it takes alittle scrimping and saving to get there,well, that’s a small price to pay.

K.C. Summers, travel editor of TheWashington Post from 2000 to2008, is a freelance writer and edi-tor in Washington, DC.


We’ll LinkYouUpon theWeb

Beginning February 1,this article will be available for onemonthontheNARFEWebsitewith links toallof thesites

mentioned.Go towww.narfe.org.Click onNARFEmagazineon the left of the page,sign in as amember and click onCoverStory.Clicking on theWeb sitesmentioned in this articlewilltakeyoudirectly to those sites.

These statements have not been evaluated by the FDA. Not intended to treat, cure or prevent any diseases.

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Rebalancing Your Portfolio

The New Year is firmlyupon us. If history is anyindicator,manyof us havealready renegedon at least

one of our New Year’s resolutions. Asyou work to make your resolutionspart of your routine, there is onemoreresolution that every investor shouldkeep annually–review your invest-ment portfolio’s asset allocation and re-balance, as necessary.Given the recent turmoil and stock

market declines, rebalancing willlikely involve shifting some assets toyour stock investments. Surprised? Ascounterintuitive as this may sound,given the current financial climate,there are good reasons for rebal-ancing.Institutional investors, such as pen-

sions and foundations, have long un-derstood the critical need for rebal-ancing. In fact, they have documentedpolicies dictating when to rebalance,as well as formal investment commit-tees that regularly review their port-folio’s allocation to determinewhetheror not to rebalance. Rebalancing is asmart strategy to control risk and, ifdone properly, helps to avoid the riskof poorly timed emotional deci-sions–something virtually all indi-vidual investors are guilty of.Rebalancing is the process of

buying or selling your investments inorder to bring your portfolio back tothe proper mix of asset classes–suchas bonds, stocks and cash–in order tokeep your portfolio in sync with yourrisk level. For example, if stocks expe-rience an extended period of outper-formance and your initial portfolio of60 percent stocks and 40 percent

bonds becomes 80 percent stocks and20 percent bonds, you would sellsome stocks and reposition the pro-ceeds into bonds to bring your alloca-tion back to the target mix of 60 per-cent stocks and 40 percent bonds.Of course, in order to

rebalance, you must havea target allocation to re-balance back to. This iswhy it is important tohave awritten investmentpolicy. The investmentpolicy lays out a strategyand target allocationbased on your life goals,risk tolerance and timehorizon. Institutionsfollow an investmentpolicy, and so shouldyou.Considering that asset

allocation is the primarydeterminant of a port-folio’s risk and returncharacteristics, perhapsthe most important jobof rebalancing is tomain-tain a risk level that isconsistent with yourgoals and objectives. Forexample, to illustratehow rebalancing maymanage risk, take a port-folio invested in 1994 in 60 percentstocks and 40 percent bonds. If an in-vestor simply lets this portfolio rideand applies no rebalancing strategy,by the end of 1999, the portfoliowould have become approximately 80percent stocks and only 20 percentbonds. The original portfoliomorphedinto an allocation far more aggressivethan originally intended, thus leavingthe investor exposed to a higher level

of risk that could potentially lead todire consequences.The risk management effect of re-

balancing works both ways. For ex-ample, suppose an investor invested ina portfolio with the same mix of 60

percent stocks and 40 per-cent bonds, but started in2000. By the end of thethree-year stock marketdecline, the portfoliowould have become 60percent bonds and just 40percent stocks.The benefits of fol-

lowing a disciplined rebal-ancing strategy are welldocumented. One suchstudy conducted by theSchwabCenter for Finan-cial Research found thatrebalancing portfolios an-nually reduced theoverall risk while main-taining or slightly in-creasing the returns.Rebalancing, while

conceptually simple,seems counterintuitiveand, therefore, it’s easiersaid than done. It’s ourinstinctive nature to fallin love with asset classesthat are performing well,

and the last seemingly logical movewould involve takingmoney from theoutperforming asset class and shiftingit to theweaker performing asset class.However, it’s precisely the contrariannature of rebalancing that improvesthe long-term risk and return charac-teristics of a portfolio.To understand why, take a look at

history, and you’ll discover that assetclass returns are cyclical–today’s un-

By Mark A.Keen,CFP®

ManagingMoney

THE INVEST-MENT POLICY

lays out astrategy and

target allocationbased on your

life goals,risk tol-erance and time

horizon.

derperformer likely becomes to-morrow’s outperformer. And so, rebal-ancing is an unemotional way to takeadvantage of this cyclicality by takingsome profits from the winners andshifting money to the laggards–theones that are most likely poised for arebound. Simply put: selling high andbuying low.When implementing your rebal-

ancing strategy, you should pay par-ticular attention to potential transac-tion and tax costs because they canwreak havoc on your portfolio’s re-turn. Fortunately, there are many re-balancing strategies that will help youmitigate these costs. For example, youcan perform your rebalancing in qual-ified accounts, such as traditionalIRAs, Roth IRAs and Thrift SavingsPlan accounts without having toworry about any taxable gains fromthe sales.If you’re dealing with taxable ac-

counts, you can elect to receive yourmutual fund capital gains distribu-tions and dividends in cash, and thendirect them towards the underweightassets. You have to pay tax on thesedistributions anyway–whether youreinvest or not–so taking the distribu-tions in cash and investing them inthe underweight asset classes will ul-timately minimize the amount of as-sets you need to sell.Another option for those still

saving is simply to direct the contri-butions to the underweight assetclasses. On the other hand, if you arepulling income out of your portfolio,you can take your distributions fromthe overweight asset classes.Much of the research and studies

suggest that you should review yourallocation at least once a year to re-balance any asset class that hasmoved more than 5 percent from itstarget allocation. If your target alloca-

tion for stocks is 60 percent, for ex-ample, youwould sell off some if theygrew to above 65 percent or add tothem if they dropped below 55 per-cent of the portfolio.Up to this point, we have focused

entirely on the big picture and pri-mary asset classes, such as stocks,bonds and cash. However, your stockand bond allocation also should bebroken down into asset classes, suchas large company stocks, small com-pany stocks and foreign stocks, amongothers.When it’s time to rebalance, it’spossible that your overall stock-to-bond ratio will be within range butthat the allocation within your stockshas shifted to a degree that requiresrebalancing.When it comes to rebalancing your

portfolio, discipline and consistencyare key.Remember: History has shown

that asset classes naturally shift overtime. In good markets or bad, it’s im-portant to keep abreast of your assetallocation so you can make the nec-essary adjustments that will maintainthe integrity of your initial investmentstrategy.

Mark A. Keen, CFP®, is managingdirector of Bennett Financial Advisorsin Fairfax,VA, and an investmentadviser representative and registeredrepresentative of The StrategicFinancial Alliance, Inc. (SFA).Securities and advisory services areoffered through SFA. E-mail:[email protected].



Insomnia–trouble falling orstaying asleep–is the mostcommonsleep complaint andaf-fects nearly half of adults age 60

andolder. Insomnia can lead to depres-sion, attention andmemory problems,

excessive daytimesleepiness, night-time falls, and in-creased use of pre-scription and over-the-counter sleepaids.For more than

eight out of 10people, insomnia isa result of an emo-

tional, neurological or other medicaldisorder, or of another sleep disorder.Sleep apnea and restless legs syndromeare examples of other sleep disorders.Alzheimer’s dementia and Parkinson’sdisease are neurological disorders thatcan disrupt sleep. Emotional disordersthat can cause insomnia include de-pression, anxiety and post-traumaticstress disorder.Medical conditions that can cause

insomnia include:• Cancer, arthritis and headaches

that cause chronic pain;• Asthma and heart failure that

cause difficulty breathing;• Overactive thyroid;• Heartburn and other gastroin-

testinal disorders; and• Stroke.Insomnia can be a side effect of the

following commonly used substancesandmedicines:• Caffeine and other stimulants;• Tobacco and other products con-

taining nicotine;

• Alcohol and other sedatives;• Certain asthmamedications, such

as theophylline;• Certain allergy and cold medi-

cines; and• Beta blockers (medicationsused to

treat heart conditions).The most common reason older

adults wake up at night is to go to thebathroom, often due to prostate en-largement in men and incontinenceproblems in women. Insomnia also

may occur after a change in personalcircumstances, such as the loss of aloved one, relocation or being hospi-talized. Menopause is another condi-tion that can cause discomfort leadingto sleep loss. Personal habits–such asdaytimenapping, lack of exercise or re-duced sunlight exposure due tospending less timeoutdoors–canupsetthe biological clock and interfere withthe sleep cycle.Symptoms of insomnia include:• Taking more than 45 minutes to

fall asleep;• Wakingupmany timeseachnight;• Wakingup early andbeingunable

to get back to sleep; and• Waking up feeling tired and un-

able to function well during the day.If you have symptoms of insomnia,

see your doctor. Your doctor shouldtake a medical history that includesquestions about how you sleep andhow you function during the day, and

then conduct a physical examination.Blood tests may be done to checkfor thyroid problems or other condi-tions.Youmaybe referred to a sleepmed-

icine specialist for more testing. Apolysomnogram (PSG) sleep study canidentify other sleep disorders, such assleep apnea or restless legs syndrome.The PSG is painless and records yourbreathing patterns, body movements,heart rate and brain wave activity

during sleep. A multiple sleep latencytest (nap test) requires you to napevery two hours. If you fall asleep tooquickly, it may represent excessivedaytime sleepiness.Insomnia can often be relieved by

good bedtime habits and avoidingsubstances that disrupt sleep, and bycognitive-behavioral therapy andmedications.Good bedtime habits include:• Keepingyourbedroomdark, quiet

and at a comfortable temperature;

By Marilyn S.Radke,M.D.

LiveWell

ToLearnMoreFor more information, write to

the National Heart, Lung, andBlood Institute Health InformationCenter,P.O.Box30105,Bethesda,MD20824-0105;call 301-592-8573 (TTY:240-629-3255);orvisit theWebsiteatwww.nhlbi.nih.gov.

Not So Sweet Dreams?

PRESCRIPTION SLEEP medicinescan leave you groggy,especially ifyou must get up before sleepingfor seven or eight hours.


• Following a relaxing bedtime rou-tine, such as reading, bathing or lis-tening tomusic; and• Going to sleep and waking up

around the same time each day.Avoid substances that interferewith

sleep, including:• Caffeine, tobacco and other stim-

ulants near bedtime;• Allergy and cold medicines (over-

the-counter and prescription) that candisrupt sleep; and• Alcohol.Cognitive-behavioral therapy uses

the followingmethods to relieve sleepanxieties:• Relaxation and biofeedback to

control breathing, heart rate, musclesandmood;• Positive thinking to link being in

bed with being asleep;• Talk therapy to soothe racing

thoughts; and• Limiting the time spent in bed

while awake.Sleep-inducing medication may be

prescribed for one to twoweeks tohelpestablish a regular sleep schedule. Pre-scription sleep medicines can treat in-somnia but may leave you feelinggroggy, especially if you must get upbefore sleeping for seven to eighthours. Over-the-counter remedies, in-cluding melatonin, L-tryptophan andvalerian supplements, and valerianteas or extracts, are unregulated by theFood andDrugAdministration. Unreg-ulated products can vary in dose andpurity, and their safety and effective-ness is not well understood.Poor sleep is not a normal part of

aging. If youhave trouble sleeping, seeyour doctor for diagnosis and treat-ment.

Marilyn S. Radke, M.D., is board certi-fied in preventive medicine and prac-tices in Atlanta, GA.

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LEAVING FEDERAL SERVICEQUESTION:I’m a federal employeeunder the Civil Service RetirementSystem (CSRS) with more than 24years of service andmore than a yearof accumulated sick leave. I will soonturn age 55 and have been offered anattractive job in the private sector. Iam not eligible for an “early out.”What benefits would I retain in case Idecide to leave federal service?Whatwouldmy retirement benefit be,andwhenwould itbegin? Is thereapenaltyinvolved?Wouldmy surviving spouseretainanydeathbenefits frommyfed-eral employment?Response: If you resign before be-coming eligible for an immediate an-nuity and leave your retirement contri-butions in the fund, youwill only be el-

igible for a deferred annuity when youreach age 62. That annuity will bebased only on your actual service. Un-used sick leave is not included in thecomputation of deferred annuities. Youwill not be able to continue your healthinsuranceunder the Federal EmployeesHealth Benefits Program or life insur-ance after separation. These benefitscontinue only for immediate retirees.Your spousewould be eligible for a sur-vivor annuity only if you were eligibleand applied for your deferred benefitbefore your death. Should you die be-fore becoming eligible, only a lump-sum payment of your retirement con-tributions would be due to your heirs.

CSRSOFFSETQUESTION: I am a 56-year-oldCSRS(CivilService Retire-ment System)Offset employeeandwill retire inafew years. I havediscovered that I willnot be subject to an offsetofmy annuity because I havemore than 30 years of sub-stantialearningsunderSocialSecurity.I haven’t seenNARFE address a ques-tion in the magazine where a CSRSOffsetemployeedoesnothaveaSocialSecurity offset.Response: You are correct in that yourSocial Security benefit will not be offsetby theWindfall Elimination Provision ifyou have 30 years of substantial earn-ings. However, your annuity from theOffice of PersonnelManagement (OPM)will be offset when you reach age 62because you are eligible for a Social Se-curity benefit. The offset is based uponfederal service while you were coveredunder the CSRS Offset. Youmay applyfor a Social Security benefit at age 62 orpostpone applying to receive a larger

benefit. OPM is required to offset yourannuitywhen you reach age 62, even ifyou decide to postpone applying foryour Social Security benefit.

FERS SUPPLEMENTQUESTION: I turned age 62 on Jan-uary18,2009.Mypayment for January1includedtheSpecialRetirementSup-plement.The Federal Employees Re-tirement System (FERS) handbookstates that this supplement continues“until the earlier of (1) the last day ofthemonth before the firstmonth forwhich youwould be entitled to SocialSecurity benefits or (2) the last day ofthemonth inwhichyoureach62.” I’mconfused about whether this wasmylast supplement or if I should have re-ceived another one onFebruary 1.Response: If youwere eligible for SocialSecurity benefits on January 18, 2009,

under this rule, your RetireeAnnuity Supplement wouldterminate December 31,2008, since the Office ofPersonnelManagementuses the earlier of thetwo dates. Since theJanuary 1, 2009,

FERS paymentwas forDecember 2008,you received the Retiree Annuity Sup-plement in that payment. However, itdoes not appear that the Retiree An-nuity Supplementwould have been in-cluded in your February 1, 2009, FERSbenefit.

SS CREDITSQUESTION:I need 40 credits for re-tirement benefits,but I have only 32.Would I beable tobuy theothereightcredits that I need?Response:No, you cannot “buy” credits.The onlyway that you earn credits is byworking for wages in a job covered bySocial Security or having net incomefrom self-employment. You don’t get

NOTE: The following Questions &Answers were compiled by Retire-ment Benefits Service Departmentstaff. These are real questionsreceived by the Department andreal answers, based on themembers’ personal circumstances.The answers are not universal andmay include information that isrelevant to the correspondent’sparticular situation.NARFE does notprovide legal advice or assistance,does not provide financial planningadvice or assistance, and does notprovide tax advice or assistance. Forlegal, financial planning or taxadvice/assistance,NARFE recom-mends members contact anattorney, financial planner or certi-fied public accountant/tax adviser. QA&

Questions &Answers

ACTIVEEMPLOYEES

We’ve got the

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All taken from the pages of NARFE magazine. And all written expressly for federal annuitants andemployees. Plus a Bonus Section containing reprints of key articles from NARFE magazine!

Order your copy of the new Questions & Answers today!Clip and mail to: NARFE Q&A Book, 606 N. Washington Street, Alexandria, VA 22314-1914

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credits for unearned income, such asyour pensions, or interest or dividendsfrom your savings and investments.You don’t pay Social Security taxes onthat kind of income, even though youmay have to pay income tax. If youwork for a federal, state or local govern-ment agency that is not covered by So-cial Security, you don’t pay Social Secu-rity tax, and you don’t earn credits formonthly benefits based on those earn-ings. If you pay Medicare tax on thoseearnings, you do earn credits towardqualifying for Medicare protection atage 65.

RETIREMENT STEPSQUESTION:I will be retiring in a fewyears.Do you have any suggestions formaking the process flow moresmoothly?Response: You should begin planningseveral years before the date you haveset for retirement so that youwill knowwhat is required to continue certainbenefits into retirement. There aremany factors related to retirement plan-ning, and it is literally never too early tobegin. The best place to begin is withyour local human resources office. Thestaff can provide personalized assis-tance, and your employment recordsare maintained there. Your health andlife insurance coverage is of immediateconcern now because you must carrycoverage continuously for at least fiveyears before your retirement, or youmay be ineligible to continue them.

You should:• Confirmwhen youwill be eligible

to get a retirement benefit.• Decide when youwant to retire.• Get information about other bene-

fits for which you alsomay be eligible,suchasThrift SavingsPlanpaymentop-tions and any other entitlements basedon employment, for example, ForeignService, Social Security, pensions from

private industry and IRAs. You shouldhave a fairly comprehensive picture ofall sources of your retirement incomeandwhen each is payable.

• Tell your supervisor about yourproposed retirement date. You shouldgive sufficient notice to allow for plan-ning for someone to take your place.

• Attend a pre-retirement coun-seling seminar.

You also should review your Offi-cial Personnel Folder to make surethat there is verification of all of yourmilitary and civilian service. If anyrecords are missing, your employershould help you document theservice and obtain any missingrecords. If you have civilian servicefor which you did not pay retirementcontributions or repay a refund ofcontributions, your annuity will de-crease unless you pay a deposit or re-deposit. Your human resources officeshould tell you about what impactpayment or nonpayment has on youreligibility and the amount of your re-tirement benefit by providing youwith an annuity estimate and the de-posit amount. If you owe a paymentin order to receive credit for militaryservice you performed after 1956, youmust make that payment before youretire. If you are receivingmilitary re-tired pay, you should discuss whetheror not youmust waive the retired paywith the human resources officer atyour agency. Your human resourcesofficer also can tell you about re-ceiving credit in your annuity com-putation for various types of serviceand about the payments described

above, as well as help you withservice documentation. You wouldmail Form RI 20-97 (Estimated Earn-ings During Military Service) to yourmilitary component and present theinformation to your human resourcesoffice before youmay start your mili-tary deposits.

RETIREMENTAPPLICATIONQUESTION:How do I apply for re-tirement?Response: To qualify for paymentsfrom the Civil Service RetirementSystem (CSRS) or the Federal Em-ployees Retirement System (FERS), youmust submit a retirement application.CSRS employees submit StandardForm 2801; FERS employees submitStandard Form 3107. Submit theseforms to your human resources office.Both the human resources and payrolloffices in your agency and the Officeof Personnel Management (OPM) areresponsible for processing your an-nuity claim.

You can help reduce delays in pro-cessing by submitting your applicationin advance and by making sure thatyour Official Personnel Folder (OPF) iscomplete. If you submit your paper-work early, your human resources andpayroll offices will be able to completetheir actionbeforeyour retirementdate.

Your human resources office musttake the following actions to processyour retirement application:

• Complete the “AgencyChecklist ofImmediate Retirement Procedures,”Standard Form 2801, Schedule D(CSRS); or 3701, Schedule D (FERS);

Questions &Answers

NARFE SERVICEOFFICERS are available to answer questions and toassist in helping with a variety of benefit matters.Check your chapter newsletterfor the name and phone number of your service officer.Call NARFE toll-free at

800-456-8410for the nearest service officer.NARFE Service Centers are also available in someareas.Use the Service Center listings on ourWeb site,www.narfe.org.

• Prepare and obtain your signatureon the “Certified Summary of FederalService,” Standard Form2801-1 (CSRS)or 3701-1 (FERS).

• Verify any service not fully docu-mented in yourOPF. If documentationis missing, verification may be ob-tained by contacting federal recordcenters. If the human resources officeis unable to obtain verification, OPMwill complete verificationupon receiptof your retirement application andrecords. However, this process willcause a delay in processing.

• Certify and transfer your coverageunder the Federal Employees’ GroupLife Insurance program to OPM.

• Transfer your enrollment underthe Federal EmployeesHealth BenefitsProgram (FEHBP) to OPM. Completethe SF-2818.

• Prepare Standard Form50, “Notifi-cation of Personnel Action.”

• Send all of your retirement mate-rials to your payroll office.

After your human resources officetakes action, your agencypayroll office:

• Authorizes your final paycheckand lump-sum payment for unusedannual leave.

• Prepares your “Individual Retire-ment Record,” Standard Form 2806(CSRS) or 3100 (FERS), which reflectsservice, salary history and annual re-tirement contributions.

• Forwardsall retirementdocumentstoOPM.

TSPANDMILITARY SERVICEQUESTION:I am under the FederalEmployees Retirement System(FERS) andwill report soon for activemilitary duty.While I am in the mili-tary, will I miss out onmaking contri-butions to the Thrift Savings Plan(TSP)?Response: You may contribute to theTSPwhile you are on active duty. In ad-


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dition, youmay be eligible to make upcontributions when you return to yourcivilian position if:

• You were separated from federalcivilian service to perform militaryservice orwere placed innonpay statusto performmilitary service;

• Your release frommilitary service,discharge fromhospitalization or othersimilar event occurred on or after Au-gust 2, 1990; and

• You were subsequently re-em-ployed in, or restored to, a position cov-ered by FERS or the Civil Service Re-tirement System pursuant to 38 U.S.Code, Chapter 43.

If you have a loan from yourcivilian TSP account, your paymentswill be suspended when you beginyour nonpay status to perform mili-tary duty. Your agency will resumeyour loan payments when you returnto pay status. If you separated fromcivilian service and your Agency Au-tomatic Contributions were forfeitedbecause youwere not vested, you areentitled to have these funds and theirearnings restored to your accountwhen you return to civilian service. Ifyou separated from civilian service,and your TSP account was paid toyou as an automatic cash out, whenyou return to civilian service youmayreturn the funds to re-establish youraccount. The agency determines theretroactive period and the basic payamounts on which the agency auto-matic 1 percent will be computed,and submits this information to thecivilian payroll office. You also will begiven an opportunity to make up anymissed contributions.

For more information, contact yourhuman resources office or visitwww.tsp.gov.

FEGLIQUESTION:I was told that I can re-

ceive a lump-sum payment of life in-surance if I amterminally ill.Howdoesthiswork?Response: There are twoways to obtaincash from your life insurance. Youmayapply for a livingbenefit through theOf-fice of Federal Employees’ Group Life In-surance (OFEGLI), or youmay elect a vi-atical settlement. A living benefit pay-ment is a lump-sum payment to thosewho are terminally ill andhave a docu-mented medical prognosis showing alife expectancy of no more than ninemonths.Youareeligible to elect a livingbenefit if you are an employee, annui-tantor compensationer, andyouareen-rolled in FEGLI. Employees can choosea full or partial (multiple of $1,000)living benefit. Annuitants and com-pensationers can elect only a full livingbenefit. Living benefit payments are re-duced by 4.9 percent to make up forlost earnings to the Life InsuranceFundbecause of early payment of ben-efits. The election of living benefits hasno effect on the amount of any Op-tional life insurance. Youwill continueto pay premiums for any Optional in-surance you have. Contact OFEGLI at800-633-4542 to obtain the form toelect living benefits (Form FE-8). Thisform is not available fromyourhumanresources office or the Office of Per-sonnel Management.

If you are terminally ill, you can as-sign your FEGLI coverage to a viaticalsettlement firm in exchange for cash.Some viatical firms also accept assign-ments if you are chronically ill. “As-signment”means that yougive owner-ship and control of your Basic, OptionA and/or Option B life insurance cov-erage to someone else. Thismeans thatthemoney goes to the assignee or theassignee’s beneficiary(ies) when youdie. The insurance is still on your life,and youmust continue to pay for cov-erage; but someone else “owns” and

controls your coverage. You may as-sign your life insurance coverage to anindividual, a corporation or an irrevo-cable trust. Your decision to assignyour coverage is irrevocable; youcannot cancel your assignment if youchange your mind. You cannot assignOption C.

DISABILITY RETIREMENTQUESTION: My husband retiredfrom federal employment 14 yearsago on a disability.We are now won-dering what will happen when hereaches retirement age.He had 22years of service and will be age 62 infive years.Will he lose his disabilityannuity when he reaches retirementage, or will he then collect regularcivil service retirement? He workedunder the Civil Service RetirementSystem (CSRS).Response: When he retired 14 yearsago under CSRS disability, his annuitybenefit was computed at that time. Therate is not adjusted at age 62. Unless heis found recovered before he reachesage 60, he will continue to receive thatbenefit. Our answer would be differentif he were receiving a disability underthe Federal Employees RetirementSystem.

MEDICAREADVANTAGE PLANQUESTION: I cannot find any infor-mation onMedicareAdvantage plansvs.theFederalEmployeesHealthBen-efits Program (FEHBP) plans. TheMedicare plans look too good to betrue.Can youmake any suggestions?Response: You should carefully com-pare the benefits under your FEHBPplan with any Medicare health plan.You should also consider any costs oftheMedicare health plan.

If you choose a Medicare health

Questions &Answers

RETIREES

plan, youmaysuspendyourFEHBPen-rollment. If the Medicare Health Planends, you can then enroll again imme-diately in the FEHBP; or if you are notsatisfiedwith theplan, youcan re-enrollduring any Open Season. You couldsuspend but you should never drop orcancel your FEHBP enrollment. Callyour StateHealth InsuranceAssistanceProgram (SHIP) forhelpwithquestionsabout appeals, buying other insurance,choosingaMedicarehealthorprescrip-tion drug plan, buying a Medigappolicy, andMedicare rights and protec-tions. SHIP is a federally funded stateprogram that provides free local healthinsurance counseling to people withMedicare. You can find the telephonenumber by visitingwww.medicare.gov.Look under “Search Tools,” then select“Find Helpful Phone Numbers and

Websites.” Or you can call 800-MEDICAR (800-633-4227) to get thetelephone number.

PROVIDEROPTS OUTQUESTION: I received a letter indi-cating thatmy hospital plans to dropoutofmyplan’snetwork in themiddleof the year.Can I switch plans?Response: No. You would need to waitfor the next Open Season. It is not un-common for providers to leave plansmid-year. Other plan providers will beavailable to provide care. Youmay con-tinue to receive care from a nonpre-ferredhospital, andyourplanwill reim-burse you for your medical claim butnot at the preferred provider rate.

MEDICARE ELIGIBILITYQUESTION:Doesaspousewho isage

62 receiveMedicare benefitswhenhisor her 65-year-old spouse does?Response: Generally not. Theminimumage for Medicare eligibility is 65. But ifyou’ve been getting Social Security dis-ability benefits for 24months, you canreceiveMedicare at any age.

MEDICARE PHYSICIANSQUESTION:I understand thatmanyphysicians donot acceptMedicare pa-tients.Doyouhaveanyrecommenda-tions?Response: Please contact thephysiciansyou wish to see and find out if they areacceptingnewMedicarepatients. If yourphysician is not accepting newpatients,Medicarehas adirectory containing thenames, addresses, phone numbers andspecialties of physicians who are en-rolled in Medicare. Some physicians


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DUPLICATE 1099-RQUESTION:Is it possible to obtain aduplicate 1099–R (distributions frompensions,annuities,etc.)?Response: If youhave yourCSAorCSFretirement claim number and retire-ment personal identification number(PIN), you can contact theOffice of Per-sonnelManagement (OPM) at 888-767-6738 and use the automated system torequest a duplicate 1099-R. You alsocan go to the OPMWeb site at www.servicesonline.opm.gov/ and use yourPIN to view, print and request a dupli-cate 1099-R for the current tax year andtwo previous years. This assumes thatyour mailing address is still current. Ifyour address isn’t up to date, you needto contact 888-767-6738 to changeyour mailing address and then requesta duplicate 1099-R.

RE-EMPLOYEDANNUITANTQUESTION:If I return to the federalwork force after I retire,what will bethe effect onmybenefits?Response: It depends on whether yourannuity stops or continues. Re-employ-ment will cause your Civil Service Re-tirement System (CSRS) annuity to stopif:

• You are a disability annuitant whothe Office of Personnel Management(OPM) has found recovered or restoredto earning capacity prior to re-employ-ment;

• You are a disability annuitant whowas medically disqualified for con-tinued membership in the NationalGuard;

• Your annuity is based on an invol-

untary separation, and your new ap-pointment is permanent in nature; or

• You received a presidential ap-pointment subject to retirementdeduc-tions.

Re-employmentwill causeyourFed-eral Employees Retirement System(FERS) annuity to stop if:

• You are a disability annuitant whoOPMhas found recovered or restoredto earning capacity prior to re-employ-ment; or

• You are a disability annuitant whowas medically disqualified for con-tinued membership in the NationalGuard.

When your CSRS or FERS annuitystops, you have the same status asany other federal employee who isemployed in an equivalent positionwith a similar service history. Whenyou again leave federal service, youwill be entitled to either an immediateor deferred annuity, based on thisnew separation. Generally, the an-nuity will be computed on the basisof your service and salary history atthe time of the future separation fromfederal service.

If your CSRS or FERS annuity doesnot stop under the rules above, youwill continue to receive your annuitywhile you are working. Your pay willbe reduced by the amount of your an-nuity paid for the period you work. Ifyou do not work full time, the reduc-tion will be adjusted proportionately.

Re-employmentmay increase yourretirement and death benefits. As a re-employed annuitant, you can earn ei-ther a supplemental annuity or a re-determined annuity. A supplementalannuity is an annuity that is added onto your present annuity. If you workas a re-employed annuitant on a full-time, continuous basis for at least oneyear, youmay be entitled to a supple-mental annuity. If youwork part time,

you must work a proportionatelylonger period to earn a supplementalannuity. A re-determined annuity is are-computed annuity that takes theplace of your present annuity. If yourre-employment continues for at leastfive years, or the part-time equivalent,you may elect a re-determined an-nuity.

CSRS or FERS re-employed annui-tant service cannot be credited in asupplemental or re-determined an-nuity unless a deposit is paid after sep-aration or retirement deductions arewithheld. If you are re-employed in afull-time or part-time position, youmay elect to have retirement deduc-tions withheld from your pay. Theamount of retirement deductions ordeposit is a percentage of your basicpay before it is reducedby the amountof your annuity.

PRIVATE-SECTOREMPLOYMENT

QUESTION:Whatwill happen tomyannuity if I decide to return towork inthe private sector?Response: Your employment outsidethe federal government will not affectyour basic Civil Service RetirementSystem (CSRS) or Federal EmployeesRetirement System (FERS) annuity pay-ments unless you’re receiving a dis-ability annuity and are under age 60. Ifyou’re a disability retiree under age 60,you will be subject to the 80-percentearnings limit. You reach the 80-per-cent earnings limit if, in any calendaryear, your income fromwages and self-employment is at least 80percent of thecurrent rate of basic pay for the positionfrom which you retired. Your annuityalso may stop if you are found recov-ered. If you are receiving a FERS an-nuity supplement, it will be reduced,based on howmuch you earn over theSocial Security annual earnings limit. �


Questions &Answers


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Current federal employeesalert! If you are interested in

learning more about your CivilServiceRetirementSystem(CSRS)or Federal Employees RetirementSystem(FERS) retirement benefits,ask your agency human resourcespersonnel if they will be providingany pre-retirement seminars.Thensuggest that they contact NARFEfor information about the NARFEPre-Retirement Seminar Program.For more information, visit theNARFEWebsite,www.narfe.org,orcall 703-838-7760.

Ready toRetire?

A t the end of January, allannuitants and sur-vivor annuitants re-ceive form 1099-R

from the Office of Personnel Manage-ment (OPM) to use in filing federal in-come tax returns.

If you do not want to wait for yourform to arrive bymail, or if you do notreceive one, you can go toOPM’s Serv-ices Online to view your 1099-R for2008 (and the ones for twoprior years)and print out your own copies.

You can access Services Online bygoing to www.opm.gov/retire andclickingonServicesOnlineon the rightside under theQuick Links column.

ServicesOnlinealsoallows retirees totake care of other business, including:changing their federal and/or incometaxwithholding, changing theirmailingaddress and changing their PINnumber. �

Have Your1099-R Yet?


Treasurer’sAccount

I’m Still DisappointedBy Richard C. OstergrenNational [email protected]

Several years ago, I wrote asimilar column. But I thinkthat thingsmay not havechanged, as I had hoped, and

my thoughts bear repeating.Eachmonth, I review theMonthly

Chapter ActivityReports (M112s),and I am astoundedby the number ofmembers who havenot renewed theirNARFEmemberships.

We have been watching ourmembers steadily drop theirmemberships over the last few years.But we’ve not really taken a hardlook at the reasons for these losses.When newmembers come to

their first meeting, do we ignorethem?Whenmembers who have notattended ameeting in a long timecome to ameeting, do we welcome

them, or do we ignore them the sameway we did at the last meeting theyattended?Was the last meetinginteresting, or did we have nothingelse to do that day?Do we contact newmembers,

active and retired, who are on thechapter M112 eachmonth?Shouldn’t we welcome eachmemberand guest to themeeting?At a few of the chapter meetings

we’ve attended around the country,bothmywife, Carole, and I have feltlike total strangers. The attitude ofsome of the chapter members is,“Why should I speak to thestrangers?” I have empathy for a newor returningmember because withthat treatment, I probably wouldn’treturn, even for a visit.We are all in the same boat where

our annuities are concerned,whether or not we worked (or work)at different government agencies.And believe it or not, the boat isleaking. The day we retire, the Officeof Personnel Management (OPM)becomes our personnel office. OPMdistributes all annuitants’ checks. In

a way, this makes us united.Don’t run off members by ignoring

them. Appreciate their support whenthey come tomeetings.We need ashow of force tomaintain ourbenefits–both for working and retiredmembers.With proposals forreductions of benefits for active dutymilitary personnel and currentfederal employees, we have to sticktogether and provide a united front.With the 5.8 percent cost-of-livingadjustmentmany retirees received inJanuary, Congressmay take a harderlook at retired federal employees forways to balance the budget.In the 1970s, the Pittsburgh

Steelers football team had a unitedfront called the “Steel Curtain,” andthey won. TheMiami Dolphins had astrong united front line, and theywon. Do I need to saymore?Charge! �

WE NEED a show of forceto maintain our benefits—both for working andretired members.

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

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

and mail to: Alzheimer’s Association

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

SUPPORT ALZHEIMER’S RESEARCH

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

Please circle: Mr. Mrs. Miss Ms.

Name

Address

City State ZIP

Chapter number

NARFE members contributed

for Alzheimer’s research:

$9 Million Fund

$7,704,772**Total as of November 30, 2008

100% of all contributed fundsgo to Alzheimer’s research.

If you have any qquueessttiioonnss,, write to:

National Committee, Chairman

Barb L. Pretzer, 4817 Rockridge Court,

Manhattan, KS 66503


What You Can Do For NARFEBy Martha E. LeikerRegion VII Regional Vice [email protected]

NARFE’s mission has re-mained the same since1921–to preserve andenhance the benefits

of active and retired federal em-ployees and their families. For the past

88 years, NARFE’sLegislative Depart-ment representativeshave been workingto protect our bene-fits. Too often, we ask

ourselves, “Whatcan NARFE do for me?” How about

looking at it from a differentperspective and ask, “What can I do for NARFE?” On the chapter and federation

levels, volunteers are needed forcommittee work or to fill officerpositions. But so often, we tend to let someone else volunteer for thejob. All of us have different talents that

are sorely needed. All of ourmembers are important to thisorganization because if we didn’thave members, we wouldn’t have areason to exist. Reaching out to each and every

one of our members greatlyenhances our chapters, federationsand, ultimately, the entireorganization.Usually, chapters are very good

about contacting members who

regularly attend meetings. Butshouldn’t we also try to contactthose in our chapter area ornational-only members? They maynot be paying chapter dues, butthey are assigned to a chapterbecause they pay national dues.Perhaps, if their assigned chapterscontacted them, they might decide to join the chapter, attend meetingsand become involved. One-on-one contact can make a hugedifference. Each of us is of great value to

NARFE simply by being part of it.Our common bond seals the gluethat gives us a shared purpose tounite our efforts to work with eachother. NARFE works for you. Now we,

the members, have to work forNARFE. �

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NARFE has established a newchapter recruiting contestthat will provide cash

awards to chapters that recruit newNARFE members. The contest began in January and

will run through July 2010. There arethree categories, and first-prize ($500),second-prize ($300) and third-prize($200) winners will be awarded within

each of the three categories, for a totalof nine awards. The categories are:Category I, small chapters with 100

or fewer members;Category II, medium chapters with

from 101 to 400 members; andCategory III, large chapters with 401

members and above.The nine award winners also will re-

ceive special recognition at the 2010

NARFE National Convention in GrandRapids, MI.Only new members recruited by the

chapter or by recruiters representingthe chapter will be counted. Membersrecruited by NARFE Headquarters willnot be counted. NARFE needs new members. Do

your part to help NARFE grow and sus-tain our strength. �


NARFENews

NARFE Scholarship Competition OpensW ith the publication of the

application form in thisissue of NARFEmagazine,

the 2009 NARFE Scholarship Competi-tion opens. The scholarship form ap-pears on pp. 41 and 42.The competition is open to all chil-

dren, grandchildren, great-grandchil-dren and stepchildren of all currentNARFE members. A total of 60 scholar-ships of $1,000 each will be awarded,six in each of NARFE’s 10 regions.

Applicants must fill out the formand provide a transcript of their gradesand copies of results of standardizedtests. They also must submit a two-page essay. This year’s essay topic is:“People choose federal service for a va-riety of reasons. What would make fed-eral service most appealing to you andwhy?”Deadline for receipt of the applica-

tion is April 30, 2009. Each region hasits own panel of judges. Applications

are judged in the region in which theNARFE member-sponsor resides. Win-ners will be notified by August 31. Scholarships are made possible by

donations to the NARFE ScholarshipFund, which is administered by theFederal Employee Education & Assis-tance Fund. To donate to the Fund, seethe coupon on p. 44.The scholarship form also is available

on the NARFE Web site, www.narfe.org,beginning February 1. �

Recruiting Contest Under Way

New Alzheimer’s Stamp Barb Pretzer, chairman of the NARFE-Alzheimer’s

National Committee, was the guest speaker atthe unveiling in Des Moines, IA, of the U.S. Postal Ser-vice’s new 42-cent Alzheimer’s Awareness stamp. Thestamp was unveiled at locations throughout theUnited States on October 17.In further recognition of NARFE’s fundraising in

support of Alzheimer’s research, three other mem-bers of NARFE Des Moines Chapter 148 who serveas volunteers for the Postal Customer AdvisoryCouncil in Des Moines were also invited to the un-veiling. Pictured, from left, are: Larry Moore, Chapter148 president; Joy Bridenstine; Pretzer; and DarleneFreeman.


National Active and Retired Federal Employees Association2009 Scholarship Application

All NARFE Scholarship Applications for the 2009 competition must be postmarked by April 30, 2009.Photocopies of this application are acceptable. Please do not fold or bind any pages with staples.

Please check each box to ensure that your application packet is complete:� Essay Topic: “People choose federal service for a variety of reasons. What would make federal service mostappealing to you and why?” (Essay must be typed, double-spaced and not exceed two pages.)� Written recommendation/character reference from a teacher or counselor. Recommendation must be submittedtogether with application package.� Provide full transcript including fall/winter 2008 grades. All applicants must have a cumulative grade point aver-age (GPA) of at least 3.0 on an unweighted 4.0 scale. (Report cards and photocopies are acceptable.) � Check here if transcript is being mailed separately by the school. If checked, must be postmarked by April 30,2009.� List and briefly describe awards and/or community service activities (not to exceed two pages).� Copies of American College Testing (ACT) or Scholastic Aptitude Testing (SAT), or other entrance examinationscores as applicable. � Two self-addressed, stamped #10 business-size envelopes with First Class postage affixed.

Please note: All materials submitted with the application will become the property of FEEA and will not bereturned under any circumstances. If needed, make a copy of the information for yourself before mailing.

Please complete the following. Incomplete applications and applications sent toNARFE Headquarters will not be considered.

Student’s Name:

Complete Home Address:

(Address, City, State, Zip)

Social Security Number: Home Telephone: ( )

E-mail Address:

Applicant’s Grade Point Average. (Applicants must have a cumulative grade point average [GPA] of

3.0 on an unweighted 4.0 scale):

College or University (planning to attend): (Must be a college freshman by fall/winter 2009)

If taking college courses while in high school, please indicate Yes ____ No ____

NARFE Member’s Name:

Relationship to Applicant: � Father � Mother � Grandfather � Grandmother

NARFE Member No.: Chapter No:

Member’s Complete Home Address:

Telephone: E-mail address:

All of the above materials (except transcript—if necessary) must be mailed, unfolded, inthe same 9” x 12” (or larger) envelope postmarked no later than April 30, 2009, to:

NARFE Scholarship Award, 3333 S. Wadsworth Blvd., Suite 300, Lakewood, CO 80227NO STAPLES OR PAPER CLIPS, AND DO NOT FOLD

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2009 NARFE SCHOLARSHIP PROGRAM ELIGIBILITY AND APPLICATION PROCEDURES

• Children, grandchildren, great-grandchildren and stepchildren of ALL current NARFE mem-bers are eligible to apply. Applicant must be a high school senior planning to attend collegefull time by fall/winter 2009. A total of 60 scholarships of $1,000 each will be awarded.

• All applications must be postmarked by April 30, 2009.• All applicants must have a cumulative grade point average (GPA) of at least 3.0 on anunweighted 4.0 scale. Provide full transcript, including fall/winter 2008 grades. Photocopiesare acceptable. If mailed by school—still must be postmarked by April 30, 2009.

• Provide copies of American College Testing (ACT) or Scholastic Aptitude Testing (SAT), orother entrance examination scores as applicable.

• All applicants must provide a written recommendation/character reference from a teacher orcounselor. Recommendation on school letterhead must be submitted with application package.

• All applicants must list and briefly describe awards and/or community service activities on aseparate page. Provide enough information so the selection committee will know what youdid, but do not exceed two pages.

• All applicants will need to provide two stamped, self-addressed #10 business-size envelopes.First will be used to acknowledge receipt of your completed application. Second will be used toprovide results of competition. All qualified applicants will be notified by August 31, 2009.Incomplete applications will not be acknowledged.

• All applicants will need to submit a typed, double-spaced essay on the topic:“People choose federal service for a variety of reasons. What would make federal service mostappealing to you and why?” Essay must not exceed two pages.

• Please do not bind any pages withstaples or paper clips.

• Please mail all materials (except tran-script, if necessary) in one package,unfolded in a 9” x 12” (or larger) enve-lope postmarked by April 30, 2009.

The NARFE Scholarship Program is adminis-tered by the Federal Employee Education &Assistance Fund (FEEA) and is made possibleby your tax-deductible contributions to the NARFE/FEEA Scholarship Fund, 3333 S. Wadsworth Blvd., Suite 300, Lakewood, CO 80227.

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otted Line �

For more information,obtain a copy of NARFE publication F-105

A Guide toNARFE’S ANNUAL SCHOLARSHIPAWARDS PROGRAMTo get your copy, e-mail [email protected]; download it fromthe NARFE Web site, www.narfe.org;or call Headquarters and ask for theOffice of the National Vice President.May also be ordered using the F-18.

A Guide To

NARFE’SANNUAL SCHOLARSHIP AWARDS

PROGRAM

INVESTINGIN

OURFUTURE

Now that the holiday seasonis past, and we are lookingforward to another year of

working to protect our earned benefits,it is time to place renewed emphasis ona program that helps support NARFE’sgoals and objectives. Two years ago, then-National Vice

President Bill Austin created the SilverCircle Program so that members whowanted to assist NARFE could make do-nations. A number of Life and Honorarymembers, who no longer pay NARFEdues, availed themselves of this oppor-tunity to help NARFE, and they, along

with many regular dues-paying mem-bers, have contributed $68,556 over thepast two years. Because of your gen-erosity, NARFE was able to provide morefunds for public relations and other ac-tivities. We are now requesting that you

again consider making a Silver Circle do-

nation (see form below). Remember:“Working together, we can make a differ-ence.”Silver Circle donors from October

16-December 15 are listed here withtheir chapter numbers.

By Joseph A. Beaudoin, National Vice President


NARFENews

Renewed Emphasis on Silver Circle Program

NARFE WALL OF FAME ($1,000 OR MORE)

MARGARET L. BAPTISTE, CHAPTER 72, SOUTH CAROLINA

JANE A. BEAUDOIN, CHAPTER 180, VIRGINIA

JOSEPH A. BEAUDOIN, CHAPTER 180, VIRGINIA

SILVER CIRCLE ($25 OR MORE)

Silver Circle Contribution Form

Yes! I want to be a member of the NARFE Silver Circle. Enclosed is my Silver Circle contribution of $_____

• For a contribution of$25 or more, you willreceive a Silver Circlepin, and your namewill be listed in NARFEmagazine with othercontributors.

• For a contribution of$1,000 or more, yourname will be placedon the “Wall ofFame” at NARFEHeadquarters.

ID # ____________________________________________________________________(ID # may be found on your NARFE magazine label or your NARFE membership card)

Name ____________________________________________________________________

Address ___________________________________________________________________

City ____________________________________ State ___________ ZIP _____________

� My check is enclosed (please make check payable to NARFE Silver Circle)

� Please charge my credit card

Card type � Mastercard � Visa � Discover � AMEX

Card # _________________________________________________

Expiration Date_____________________________________________

Name __________________________________________________

Signature ___________________________________________ Date ___________________

� Installment PlanWall of Fame 12-month

installment plan

Clip this contribution form and mail to: NARFE Silver Circle, NARFE, 606 N.Washington St., Alexandria, VA 22314Silver Circle contributions are not deductible for federal income tax purposes.

ARIZONAELIZABETH MONDSCHEIN 1413CALIFORNIAWILLIAM L. PARONTO 0021FLORIDADONZLEIGH DOWIE 0033GEORGIAJERRY M. TRAYLOR 1033HAWAIIWILLIAM E. DANKEL 1656

KANSASGALE D. BECK 2077JEANICE A. CRESS 2077MARYLANDPAM N. ALLGOOD 0969ROY G. WETZEL 0969HENRY L. CHAMBERS 2262MICHIGANLEOCADIA W. STOKES 1515

NORTH CAROLINAPAUL CAREW 2108NEW JERSEYPHILIP J. MORETTI 0501NEVADAPHYLLIS A. RAY 1329PENNSYLVANIAWALLACE E. ROBINSON 1384

SOUTH DAKOTALEO J. MACH 1987UTAHHENRY F. BORTOLUSSI 0155WASHINGTONLANNY ROSS 0181EULA PRITCHARD 0856JAMES W. PRITCHARD 0856WISCONSINKENNETH L. SMITH 0094


Out &AboutWith the Chapters

The current and past presidents of Chapter 1063 inChambersburg, PA, posed at the chapter’s 40th anniversarycelebration. From left: Jean Crotty, current president; andDottie Dale, Ed Bolt, Howard Lutz, Gaylord Peters and DickJenkins, past presidents.

Chapter 1437 in Branson,MO, held a food drive for the SalvationArmy in conjunction with its yearly birthday party. Pictured, left toright, are: top row, Sherry Fausett, Ruby Ott and RamonaSchlichting; bottom row, Rae Young, Lillie Porter and Lois Carnahan.

Chapter 2142 in Macon, GA, raised more than $2,500 for the 2008Alzheimer’s Fund Drive Program and Memory Walk in Central Georgiaand was awarded First Place in its category.

Chapter 1377 in Minot, ND, participated in a health fair atMinot Air Force Base. Pictured from left: Mert Indergaard,chapter president;Andy Siakala, receiving a membershippacket; and Leon Lauer, North Dakota Federation president.

NARFE-FEEAPROGRAM FUND CONTRIBUTION FORM

YOUR CHARITABLECONTRIBUTION IS TAX

DEDUCTIBLE TO THE FULLESTEXTENT ALLOWED BY LAW.

Make check payable to:NARFE-FEEA Disaster Fund orNARFE-FEEA Scholarship Fund

Please mail couponand check to:

FEEA3333 S. Wadsworth Blvd., Suite 300

Lakewood, CO 80227

YES! I would like to help with my contribution.Pleasecheckappropriatebox(es); tomakecredit-cardcontributions,call 1-800-338-0755.Scholarships are available to children and grandchildren of federal civilian retirees andcurrent federal employees who are NARFE members.

� NARFE-FEEA Disaster Fund Amount $� NARFE-FEEA Scholarship Fund Amount $

Name

Address

City State ZIP


NARFE MEMBERSHIP APPLICATIONFor Active and Retired Federal Employees www.narfe.org

JoinJoin NARFENARFE Today!Today!

• Complete the application below.• Enclose payment information, bill pay,

check or money order payable to NARFE,or request to be billed.

• Or go to our Web site at www.narfe.organd join today!

*Prior to October 1, 1987

Membership is open to civilians in any agency ofthe federal or D.C.* governments including:• Retirees• Active federal employees• Spouses and former spouses of active and

retired federal employees• Former employees eligible for deferred annuity• Survivors of those eligible to join NARFE

Who can join? To apply:

Enrollment includes membership in a local chapter and the nationalAssociation, plus a subscription to NARFE’s monthly publication, NARFE magazine.

1.

2. � Also enroll my spouse __________________________

3. $33 x =__________ __________ __________Membership Fee # of People Total

Per Person Enrolling Payment

� Total payment (check, bill pay or money order payableto NARFE)

� Bill me� Charge to my credit card

The first year membership fee includes national andchapter dues.

Credit Card Information:Card type: � MasterCard � VISA

� Discover � AMEX

Card no. ___________________________________________

Expiration Date ________________

Name on Card (Print) ________________________________

Signature ____________________________ Date __________

Choose all that apply:� Retiree� Spouse� Survivor

� Active employee� Former spouse� Former employee

NARFE Member Records606 N. Washington St.

Alexandria, VA 22314-1914Fax: 703-838-7783

Full Name: Mr./Mrs./Miss/Ms.

Street Address Apt./Unit

City/State/ZIP

Home Telephone Number

E-mail Address

Federal Agency

Actual/Expected Retirement Date

Date(s) of Birth

Recruiter’s Membership and/or Chapter Number

Contact Information:

(MM) (YY)

1Q

MAIL TO:

full name


Sincere Thanks

During my recent illness, I re-ceived more than 200 cards,e-mails, telephone calls and

notes from all over the world. It wasoverwhelming and humbling to readthe sincere comments of individuals,staff, chapters, federations and regionalVPs. It was touch and go for a while,but I believe I am on the road to re-covery.

I wish I could thank eachoneof youpersonally for your thoughts andprayers, but we know that is impos-sible. So, this short note inNARFE ismysincere thanks to you for all of the sup-port you gave to me and Melinda

duringmy hospitalization and rehab. Iwas sincerely touched by the out-

pouring of response from all.With sincere thanks,

Frank G. Atwater,Past National President

Letters

REMINDER:Deadline for

registering for theLegislativeTrainingConference isFebruary 10.

NARFE HEADQUARTERS660066 NNoorrtthh WWaasshhiinnggttoonn SStt..,, AAlleexxaannddrriiaa,, VVAA 2222331144--11991144PPhhoonnee:: 770033--883388--77776600 FFaaxx:: 770033--883388--77778855

CHANGE OF ADDRESS: Contact Member Records toll-free at 800-456-8410, or send change of addressby 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 RetirementBenefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: RetirementBenefits; or submit it by e-mail to [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 lettersmust be signed. Send by postal mail to NARFE Headquarters, ATTN: Letters to the Editor, or by e-mail [email protected].

Contact Us

20-Year Staff MembersFive NARFE staff members recently reached the 20-year

mark with the Association. NARFE National President Mar-garet L. Baptiste, fourth from left, gave each a token of appreci-ation. Marking the milestone were, from left: Patricia Blackwell,Budget & Finance; Veronica Clemons, Budget & Finance; Jacque-line Bryant, Recruitment & Retention; Willie Pullen, Mail/Supply;and Kathy Thigpen, Federation & Chapter Services.

Miss an Issue?Back issues of NARFEmagazine

are available at the NARFEWeb site, www.narfe.org. On theMain Home Page, click on Mem-bers and sign in. Then click onNARFE magazine in the left panel.On the Magazine Home Page, clickon “To Access Entire Issues” under“Archives” in the left panel.

23 Years • 7 Categories27 National Awards

Get everythingyou need from 27-time

national award-winning& nationally recognized

expert Mike Fuljenz.

TWO: 2009 $1 SILVER AMERICAN EAGLE

O N LY

$13.75

limit 3 per household • Silver Basis: $10.25

Please read important terms and conditions that accompany products purchased, including arbitration agreement • Texas residents add 8.25% sales tax to orders under $1000 • All coin customers will receive a five (5) year subscriptionto our 2008 NLG Award Winning newsletter, Collectors’ Hard Asset Insider ($200 value) at no charge with order • We may contact you from time to time regarding items of interest • *If for any reason you are not 100% satisfied with yourpurchase, then return up to 10 days after receipt of order for a refund • Due to the changing price of gold & silver, ad price is subject to change 1. Dealer cost at time of transaction • Please allow 2-3 weeks for delivery after receiptof good funds • This ad may not be reproduced or represented in any other medium without the express written consent of the advertiser • Original hard-copy must be in hand to place order. Gold Basis: $827 / Silver Basis: $10.25

1st National Reserve, Ltd.® • Est. 1989 • 120 Shakespeare • Beaumont, TX 77706 • 1stNationalReserve.com

RISKFREE

24 / 7 Chk / Money Order

THREE: $5 GOLD AMERICAN EAGLE

O N LY

$95our choice of date

limit 1 per household • Gold Basis: $827

• Free of Dealer Markup1

• 1/10 oz Pure GoldBrilliant Uncirculated Condition

• Guaranteed and backedby the U.S. Government

• Free 5 year newslettersubscription with coinpurchase ($200 Value)

• Prices may be less basedon market conditions.

Coinimagesnot toscale

Plus Free Shipping & Handling $7 Value • Availability not guaranteed • Prices subject to change

ONE: AWARD-WINNING PRECIOUS METALS NEWSLETTER

� THREE SPECIAL OFFERS �

*Coins will be shipped when we receive them from the U.S. Mint distributors, estimated delivery begins between January 10 and January 31, 2009

• Free of Dealer Markup1

• 99.99 oz Pure Fine SilverBrilliant Uncirculated Condition

• Guaranteed and backedby the U.S. Government

• Free 5 year newslettersubscription with coinpurchase ($200 Value)

• Prices may be less basedon market conditions.

JUST RELEASED 2009 AMERICAN EAGLESJUST RELEASED 2009 AMERICAN EAGLES

RECEIVE A FREE NEW YEAR GIFT WITH YOUR AMERICAN EAGLE ORDER! $10 ValueReceive a Bausch & Lomb coin collectors & jewelers loupe, a must for examining and fully appreciating your coin collection.“Now you can use a Bausch & Lomb loupe just like I did when I was a grader and authenticator forthe American Numismatic Association Certification Service (ANACS)” - Mike F. - Former Grader ANACS

20 -Time ANA Seminar InstructorNumismatic Consultant 1st National Reserve

limit1 per

household

Awarded By: Numismatic Literary Guild

• 5 Year QuarterlySubscription

• 10-Time NLG AwardWinning Newsletter

• 3-Time NLG Award Winnerfor CNBC appearances

• 2004 & 2008 NLG Best Dealer Publication

• 1996 ANA Presidential Service Award

NEW

1-800-321-8700New Customers Only • No Dealers Please • Expires: 02 / 10 / 09

Vault Verification: NNRFENC0209

LAST CHANCE


NARFEPerks

OTHER SERVICES

TRAVEL

NARFEPerks are designed to provide NARFEmembers 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.

NARFEINSURANCESERVICES:1-800-233-5764

Insurance plans designed and admin-istered exclusively for NARFE members.Call for information on Whole and TermLife, Hospital Indemnity, Accidental Injuryand Death Plan, Dental Plan and CancerCare Plan. For information on Long TermCare call the Long Term Care Unit at 1-800-358-3795.

GEICO: 1-800-368-2734NARFE members with good driving

records may be eligible for quality auto-mobile insurance from GEICO. Ask aboutthe NARFE discount now available tomembers in many states. Call today foryour free, no-obligation rate quote. Besure to mention that you’re a NARFEmember!• Discount amount varies in some states• Discount not available in all states or inall GEICO companies• One group discount applicable perpolicy.

NARFEMEMBERHOMEBENEFITS1-800-823-0646

http://narfe.myhomebenefits.comAllied Van Lines and NARFE have

teamed up to offer NARFE members andtheir families the finest in relocation serv-ices at the lowest possible cost. Call for afree estimate or visit our Web site for moredetails! Serving you is our goal, as you haveserved our country.

BEKINSVANLINES1-800-456-6832

(M-F, 8 a.m.-5 p.m.CT)All NARFE members will receive dis-

counted pricing forall interstate ship-ments. Discount will apply to packing andmoving services and valuation protection.All intrastate shipments, locals and inter-national moves will be competitive in costbased on your geographical location.Mention you are a NARFE member andtransportation agreement #00930.

NARFEHEARINGBENEFITSNARFE Hearing Benefits is a program

developed in partnership with AmericanHearing Benefits. As a NARFE member,you are entitled to:

• FREE annual hearing screenings formembers and their immediate family

• Referrals to local providers with rep-utations for high quality and honestservice

• The world’s most advanced digitalhearing instruments at prices up to 60%off MSRP.

To activate your NARFEHearingBenefits call 866-925-1287.

INSURANCEMOVING SERVICES

ESCORTEDGROUPSALASKACRUISETOUR fromSF

June 3, 2009 ~ 10-nightsfrom $1,249

-----EASTERNCARIBBEANCRUISE

November 1, 2009 ~ 7-nightsfrom $544

-----COPPERCANYONTOUROctober 24, 2009 ~ 9 days

from $1,499-----

EUROPEANSPLENDORTOURJune 14, 2009 ~ 15 days

from $3,190

Additional departures available

1-800-607-4538Web Site: www.NARFEtravel.com

SINCE 19741-800-423-3226

Medical Air Services Association hasbeen the industry leader in prepaid emer-gency assistance services for more than30 years. NARFE members have experi-enced MASA’s “peace of mind” servicessince 2001. Now NARFE members areentitled to even more: air ambulancetransportation, helicopter transportation,ground ambulance, vehicle return, mortalremains transport, and much more!CallMASAToday. ItCouldSaveYourLife!

EMERGENCY SERVICESIDENTITYCHECKPRINTERS

Identity CheckPrinters now offersofficially-licensedbank checks andaccessories fea-turing the NARFElogo. Choose fromthree check de-signs, each with coordinating address la-bels and Identity Cards. A printed leathercheckbook cover featuring the NARFElogo is also available. Support NARFEwith every check you write. Order today!Visit www.identitychecks.com or call toll-free 1-800-874-5910. Use OFFER CODE9KG482 and receive FREE standardshipping on your order.

HEARING BENEFITS

NARFE’S OFFICIAL CREDIT UNIONAs a member of NARFE, you have

the privilege of joining NARFE PremierFederal Credit Union, which has beenserving members since 1935. We offerextensive services at competitive ratesto members nationwide. Your savingsare federally insured to at least $250,000and backed by the full faith and credit ofthe United States Government.

For more information, call 800-328-1500, e-mail [email protected] or visit us at NARFEpremierfcu.org.

CHOICEHOTELS INTERNATIONALChoice Hotels International® is proud

to offer NARFE members discounts atover 4,000 hotels in 40 countries. Mem-bers may receive a 20% discount at par-ticipating hotels or rates at or below perdiem, whichever discount is the greater.Choice brands include: Comfort Inn®,Comfort Suites®, Quality®, Sleep Inn®,Clarion®, MainStay Suites®, EconoLodge® and Rodeway Inn®. This offer issubject to availability. Advance reserva-tionsarerequired.Tomakereservationscall800-258-2847andmention ID#00801967.

WYNDHAMHOTELSGROUPMemberscannowsave10%offbest-

available rates at over 6,000 participatinghotels. Whether you are looking for aluxury hotel, an all-inclusive resort, orsomething more budget-conscious, wehave the right hotel, in the right place, forthe right price. To receive discountedrates, NARFE members must useMember Benefits ID #20672 and thespecified toll-free numbers. Advancereservations required.

HOTELS

ALAMO/NATIONALCARRENTAL

1-800-354-2322—www.alamo.comWelcome to Alamo Country. Where

NARFE members get unlimited mileageand year-round discounts off Alamo’salready great rates. Book with yourtravel agent or Alamo®. Be sure to re-quest I.D. Number 262544 and RateCode BY (A-1 for weekend rentals) atthe time of reservation. (Same IDnumber and code applies to NationalCar Rental.)

HERTZ1-800-654-3131—www.hertz.comHertz is proud to be a preferred car

rental partner of NARFE. As a memberof NARFE, you will receive discountedrates, unlimited mileage for mostrentals, special offers, upgrades and feewaived #1 Club Gold program enroll-ment. Remember to include yourNARFE Corporate Discount Number252137when making reservations.

AVIS: 1-800-331-1441The employees/owners of Avis offer

guaranteed low rates and quality serv-ices to members of NARFE. MentionID# A991900. Bankof America: 1-800-414-4229

Add strength and stability to your sav-ings portfolio by opening a NARFE-spon-sored Certificate of Deposit (CD) orMoney Market account offered by Bankof America. Receive High Yields and thesecurity of FDIC insuranceup to the max-imum amount allowed by law. For everyNARFE-sponsored deposit with Bank ofAmerica, the bank will make a contribu-tion to NARFE for the advancement ofprograms and services at no additionalcost to you.Use source codeHA029.

CAR RENTALS

CDANDMONEYMARKETACCOUNTS

Days Inn

Howard JohnsonRamada

Travelodge

Wingate

Knights Inn

CREDIT UNION

CREDIT CARD

Bank of America now offers the offi-cially approved credit card program forNARFE, featuring the Platinum Plus®MasterCard® with WorldPoints. This isthe only credit card that helps supportNARFE every time you use it to make apurchase–at no additional cost to you.

Request yours today!Call toll-free 1-866-438-6262Use source code FAB7WS.


AmeriHost Inn

Super 8

Baymont

Wyndham

877-670-7088

800-889-9706 866-854-1604

Domestic equity markets didnot sustain their strong per-formance of the last five

trading days in November; however, arally on the final tradingday of the yearled to positive returns for the month.December 1 was the worst first day ofanymonth inhistory as theCFundde-clined 8.9 percent in value. A mid-month interest rate cut to zero percentsparked a brief rally, but not enough toget returns into the plus column. Therally onDecember 31 gave the C Funda1.4 percent gain for theday and apos-itive return for the month. Although itwas the worst performer for the year,the I Fund posted a positive return forDecember as the dollar continued todecline, making overseas investmentsmore attractive forU.S. investors. The FFund posted a gain ofmore than 3 per-cent for the second month in a row asinterest rates continued to decline.

William H. Jacobson is financial ana-lyst, investments, of the FederalRetirement Thrift Investment Board.


For theRecord

Thrift Savings Plan Investments*

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

Month G Fund F Fund C Fund S Fund I Fund2008 January 0.33% 1.76% (5.98%) (6.27%) (8.52%)

February 0.24% 0.16% (3.28%) (2.05%) (0.66%)March 0.32% 0.33% (0.46%) (1.43%) 0.18%April 0.24% (0.16%) 4.94% 5.30% 5.55%May 0.32% (0.74%) 1.27% 4.88% 1.09%June 0.32% (0.08%) (8.41%) (7.63%) (8.15%)July 0.40% (0.01%) (0.80%) (0.79%) (3.72%)August 0.33% 0.92% 1.46% 2.17% (4.16%)September 0.31% (1.31%) (8.94%) (10.32%) (12.31%)October 0.31% (2.40%) (16.83%) (20.99%) (20.59%)November 0.31% 3.30% (7.18%) (11.13%) (6.72%)December 0.24% 3.73% 1.07% 4.68% 7.66%

Last 12 Months 3.75% 5.45% (36.99%) (38.32%) (42.43%)

Month L Income L 2010 L 2020 L 2030 L 20402008 January (0.97%) (2.07%) (3.90%) (4.71%) (5.37%)

February (0.22%) (0.59%) (1.25%) (1.51%) (1.80%)March 0.23% 0.07% (0.06%) (0.18% (0.29%)April 1.20% 1.93% 3.23% 3.74% 4.26%May 0.59% 0.78% 1.23% 1.48% 1.65%June (1.47%) (2.65%) (4.97%) (5.88%) (6.70%)July 0.00% (0.23%) (0.82%) (1.07%) (1.31%)August 0.35% 0.29% 0.16% 0.17% 0.11%September (1.75%) (3.00%) (6.01%) (7.24%) (8.35%)October (3.44%) (5.41%) (11.10%) (13.40%) (15.40%)November (0.84%) (1.58%) (3.91%) (4.96%) (5.85%)December 1.21% 1.66% 2.82% 3.24% 3.63%

Last 12 Months (5.09%) (10.53%) (22.77%) (27.50%) (31.53%)

The Consumer Price Index for Urban Wage Earners andClerical Workers (CPI-W) decreased 2.3 percent in No-vember to 207.296, according to the Bureau of Labor Sta-

tistics. To calculate the next cost-of-living adjustment (COLA), theindices of July, August and September 2009 will be averaged for athird-quarter determinant, which will be compared with the 2008third-quarter base index of 215.5. November’s index is down 3.8percent from the base.Benefits awarded under the Federal Employees’ Compensation

Act (FECA) to individuals sufferingwork-related injuries or illnessesare adjusted according to each calendar year’s percentage change inthe CPI-W. The November index is 0.8 percent higher than the De-cember 2007 base index of 205.7. �

CPI Declines in NovemberThe chart below tracks the CPI-W, the monthly infla-tion change, and the cumulative percentage gain forthe next CSRS and Social Security COLA.

CPI-W MONTHLY % CHANGE% CHANGE FROM 215.5

October 212.2 -1.3 -1.5November 207.3 -2.3 -3.8DecemberJanuary 2009FebruaryMarchAprilMayJuneJulyAugustSeptember

TSP:Domestic Stocks Rally in Late DecemberByWilliam H. Jacobson

4732

8

For people like me, who want a cell phone that’s easy to use. Over the years, cell phones have become smaller and smaller with so many complicated features.They are harder to program and harder to use. But the Jitterbug® cell phone has simplified everything, so it’s not only easy to use, it’s easy to try. No crowded malls, no waiting in line, no confusing sales people, or complicated plans. Affordable and convenient cell phone service is only a toll-free phone call away.

The new Jitterbug® cell phone makes calling simple!• Large, bright, easy to see display and buttons • Comes pre-programmed and ready to use right out of the box• No contract required• An operator is always available to help you, and will call you by name• Push “Yes” to call directly from your personal phone list • Soft ear cushion and louder volume for better sound quality • Separate Volume Up/Down button on cover of phone• Hearing aid compatible • Familiar dial tone confirms service (no other cell phone has this) • Service as low as $10 a month* • Access help wherever you go

Service as low as $10 a month and a friendly 30-day return policy**. If you’ve ever wanted the security and convenience of a cell phone, but never wanted the fancy features and minutes you don’t need… Jitterbug® is for you. Like me, you’ll soon be telling your friends about Jitterbug®. Call now.

Introducing the world’s simplest cell phone experience – with service as low as $10 a month*

It doesn’t play games, take pictures,or give you the weather.

The Jitterbug® developed with Samsung®.It’s the cell phone that’s changing all the rules.

brought to you by

IMPORTANT CONSUMER INFORMATION: Subject to Customer Agreement, select calling plans, and credit approval. Other charges and restrictions may apply. Screen images simulated.Coverage and service not available everywhere. Copyright © GreatCall, Inc. Jitterbug and GreatCall are trademarks of GreatCall, Inc. Samsung is a registered trademark of Samsung ElectronicsAmerica, Inc and its related entities. *Not including government taxes, assessment surcharges, and set-up fee. **Applies to phone and monthly service charges only, provided call time usage is lessthan 30 minutes and phone is in like-new condition. Usage charges may apply. �All plans require the purchase of a Jitterbug phone. In addition, there is a one time set up fee of $35. ��Jitterbugwill work almost everywhere in the U.S. where cellular service is available from most of the major carriers. All rights reserved. © 2007 TechnoBrands®, Inc.

Jitterbug® Cell Phone Item# BU-4722

Call now for our lowest price.Please mention promotional code 37545.

1-888-807-9018www.firststreetonline.com

NEWNo

Contract

Full Dial Phone available in Graphite and White.

Available in a simple12-button Dial phoneand an even simpler3-button OneTouchphone for easy access to the operator, thenumber of your choice, and 911.

888-807-9018Questions about Jitterbug? Try our pre-recorded

Jitterbug Toll-Free Hotline 1-888-779-5934

Ladies’ MEDIUM: 5 51⁄2 6 61⁄27 71⁄2 8 81⁄2 9 10 11

*Ladies’ WIDE $3 more per pair:6 61⁄2 7 71⁄2 8 81⁄2 9 10 11

©2009 Schering-Plough HealthCare Products, Inc. Manufactured for Brown Shoe Company, Inc,. under license from Schering-PloughHealthCare Products,Inc.

100% Satisfaction Guaranteed or Full Refund of Purchase Price at Any Time!

Imp

orted

More cushioningthan regular store brand

insoles

TPR outsolefor lightweight &flexible comfort

Perforatedinsole boardfor flexibility andbreathability

EVA heel insertfor shock absorption on heel strike

BoneChambray

Red

Bone

Black

When you pay by check, you authorize electronic clearing.

On-Line Quick Order

Duke Habernickel#1Bargain Place, Jessup, PA 18434-1834

Like pillows for your feet!Quilted leather upper backed by breathable nylon tricot over softest foam lining. Padded ankle collar. All atop Dr. Scholl’s famous Double Air-Pillo® Insoles and flexible rubber outsole. A Pure Delight, and the Postage is FREE!

Visa MC Discover®

NetworkAmEx Check

2 for 42.50 3 for 61.75

LEATHERLace-Ups 2299*

per pair

FREE Postage!FREE Postage!

Layer upon layer of plushpadding make these the shoes you’ll live in!

Card # ______________________________________Exp.: ______/_____Mr. Mrs. Ms. _________________________________________________Address _________________________________________ Apt. # ______City & State ___________________________________ Zip ___________

Haband #1 Bargain Place, Jessup, Pennsylvania 18434-1834Send ____ pairs. I enclose $________purchase price plus $7.99 toward postage.In GA add tax.

Imported

per pair - narfe · rosetta stone. the fastest and easiest way to learn . one day, his son would...

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