Federal Employee, We were where you are, We are where you will be. Come join us in preserving your Retirement Benefits. The members of NARFE

Who is Looking Out for Your Retirement Benefits ?

Founded in 1921 by 14 federal workers. Now a major force on Capitol Hill and across the nation. Highly respected legislative voice for federal workers and retirees. NARFE…

… 297,000 strong and 23,900 of them are Active Federal Employees. We represent 4.0 million plus federal employees and retirees. … The only association of federal workers and retirees united to preserve and improve the economic security and well-being of federal employees and their families in retirement NARFE is…

FEDERAL RETIREMENT BENEFITS ARE NOT A GIFT Benefits are earned through long term government service and your contributions

Protect income security Protect health benefits Receive fair and equal treatment NARFE Goals:

“Everything we gain, everything we lose, is by act of Congress.” LEGISLATION IS A MAJOR FOCUS

A Top legislative staff Close contact with Congress and OPM Nationwide network of legislative activists NARFE is highly respected Because of:

NARFE has helped to bring you: Survivor Benefits (1950s) Creation of the Federal Employees Health Benefits Program (1960s) Thrift Savings Plan and Federal Employee Retirement System (1980s) Long Term Care (1990s)

NARFE will: Sponsor and support needed legislation Oppose adverse legislation Foster public recognition Cooperate with other organizations to accomplish goals Preserving Your Retirement Benefits

Inform members about relevant issues – Retirement income, health care benefits, taxation and COLAs. Strengthen political influence through NARFE-PAC. Partner with OPM to answer questions about retirement. Preserving Your Retirement Benefits (2)

SOME CURRENT ISSUES BEFORE CONGRESS: Repeal or modify Government Pension Offset (GPO) legislation affecting CSRS Repeal or modify Windfall Elimination Provision (WEP) legislation affecting CSRS and FERS Include FEHBP Premium Conversion for Annuitants Tax Equity in Legislation

Why are these important? GPO affects 464,537 S.S. beneficiaries – 77% women 43% widowed GPO prevents CSRS retirees from collecting both federal annuity and any Social Security Benefit based on spouse’s work 75% lost entire benefit (GPO and WEP in place since 1983)

Why are these important? WEP causes loss of up to 50% of retiree S. S. benefits WEP affects 972,000 S.S. beneficiaries – 2/3rds were Men 20% had paid into S.S. for at least 21 years. (GPO and WEP in place since 1983)

NARFE SUPPORTED ISSUES IN 111th CONGRESS: Automatic TSP Enrollment “Roth” Option for TSP Allow surviving spouse to retain TSP rights Allow agencies to temporarily hire retirees without affecting annuities FERS Sick Leave Credit

HOLDING THE LINE Actions to reinstate or add new benefits are important, but – Our first legislative priority is to prevent any loss of current benefits. So far, NARFE has been successful in fending off attempts to cut back or curtail funding of our current benefits.

“Harbingers of things to come”: Pensions: Defined pension benefits almost unheard of today In 1980, 80% of workers had them, now only 21.3% Could generate “envy factor” Health Care: Private health care programs hard hit, and FEHBP one of few fee-for-service options left. Health Care. Reform will impact.

: Some recent, but defeated, Congressional proposals: Cut Federal Retirement & Health Benefits by $10.2 B. Cut COLAS Change from “High 3” to “High 5” computation Cut FEHBP support on retirees with less than 30 years Charge federal employees for parking

: But they are not done yet: June 9, 2009 House Republican Policy Proposal calls for: Shift from High 3 to High 5 Annuity Calculation Setting the minimum retirement age at 62 for all Federal Retirees. Sep 28, 2009, Senator Grassley, Iowa, “Move all federal employees, except Congress, to state health care plans.”

: But they are still not done: Sept 2010: “Pledge to America” calls for: Hiring freeze on all non-security federal workers On the Hill, calls to: Block 1.4% pay increase Furlough federal workers for two weeks Fire workers who owe federal taxes Freeze bonuses

Nov 2010 Deficit Commission Leadership proposals Five Part Plan “Our plan makes five basic recommendations: 1. Enact tough discretionary spending caps and provide $200 billion in illustrative domestic and defense savings in Pass tax reform that dramatically reduces rates, simplifies the code, broadens the base, and reduces the deficit. 3. Address the “Doc Fix” not through deficit spending but through savings from payment reforms, cost-sharing, and malpractice reform, and long-term measures to control health care cost growth. 4. Achieve mandatory savings from farm subsidies, military and civil service retirement. 5. Ensure Social Security solvency for the next 75 years while reducing poverty among seniors. “

Deficit Commission Leadership Proposals included: “Freeze federal salaries, bonuses, and other compensation at the Department of Defense for three years Freeze federal salaries, bonuses, and other compensation at non-Defense agencies for three years$15.1 B Cut the federal workforce by 10% (2-for-3 replacement rate) $13.2 B Eliminate 250,000 non-defense service and staff augmentee contractors$18.4 B Reform FEHB Retiree Plans to Increase Cost Sharing for Federal Civilian Retirees -$1 B Use highest 5 years to calculate civil service pensions Ask federal workers to contribute ½ the cost (not 1/14th) of retirement Reform COLA payments for civilian & military early retirees”

GOP Fiscal 2012 Budget Resolution Elements April 2011 Freeze federal salaries, bonuses, and other compensation for five years Cut the federal workforce by 10% (1-for-3 replacement rate Reform FEHB Retiree Defined Benefit Plans to Increase Cost Sharing for Federal Civilian Retirees from 8% to 50%. Use highest 5 years to calculate civil service pensions Ask federal workers to contribute ½ the cost (not 1/14th) of retirement

Sen. Tom Coburn, R-OK July 23, 2009 (Was a member of the Entitlement Commission) “By the way, if you are a federal employee and unhappy with me trying to defeat this amendment, you should pay attention to something. There is no guarantee to your federal pension based on the economics we face today in this country. If you think it is guaranteed, you have another thought coming because the world economic system is going to determine whether we can honor that pension. That is what is coming. We are very close.”

NARFE is still helping FY2010 Defense Authorization Act, signed in October 2009, includes -Allowing federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity - Letting FERS workers credit unused sick leave toward retirement (initially half, then all). - FERS re-deposit - CSRS Part-Time fix - Ending NSPS

How Can You Help? Join NARFE – recruit others Stay informed: Sign up for GEMS, Read NARFE Magazine and newsletters. - Call, Write and/or your Representative and Senators (Often). - Use CAPWIZ - Refute inaccurate and misleading statements - Pass The Word to others – members and non- members - Encourage them to act. - Give the NARFE Legislative Staff numbers to work with – every voice counts.

How Can You Help? Help set the public record straight about Federal Employee and Retiree contributions, pay and benefits Take part in the “Protect America’s Heartbeat” Campaign Go to to send letters and other information to your Legislators and to tell your personal story. Write letters to the editor of your local newspaper Pass information about this effort to your Federal Employee co-workers

OTHER NARFE PROJECTS Alzheimer’s Research (over $ million) Federal Employees Education and Assistance Fund (FEEA) Scholarship Fund (sixty $1,000 scholarships) NARFE-PAC

OTHER NARFE PROJECTS Alzheimer’s Research (over $ 9.25 million) Federal Employees Education and Assistance Fund (FEEA) Scholarship Fund (sixty $1,000 scholarships) NARFE-PAC

Another NARFE Resource Federal Retirement Benefits for Employees (FRB – E) Financial Benefits Maximizer (FBM) eSeminar All Online Available to NARFE members only for small fee

WHO CAN BELONG? Active employees Former employees Retirees Survivors Spouses Former spouses “ Civilians who are or will be eligible to receive an annuity or survivor annuity from the federal retirement programs”

WHO DETERMINES NARFE ISSUES? Grass Roots Chapters Federation convention of delegates National convention of delegates Focus on issues Political, but non-partisan

WHERE CHAPTERS ARE In Washington State: 1398 Chapters in US, Panama, Philippines and Puerto Rico

MEMBER BENEFITS: Effective voice in Washington DC NARFE monthly magazine Liaison with Office of Personnel Management Insurance Perks Social contacts

The Magazine

The Web Site Legislation Retirement Tips NARFE Magazine Member Discounts Q & A Current Federal Employee Info Insurance Benefits

NARFE: A key source for answers on retirement issues Most chapters have a Service Officer State Service Centers Online assistance through Insurance – FEGLI and FEHBP Notification of death Survivor benefits All services provided without cost to user!

WHAT DOES IT COST TO BELONG? New membership dues are $45 the first year which includes chapter dues The following year dues will be $40 plus chapter dues Payment options include bill pay, credit card, & money order

Protect Your Benefits Through NARFE!

“Be Prepared for Life’s Events Useful NARFE Publication Lets you log important information for your beneficiaries