1. Legislative Report and PAH Update By Julie Tagen NARFE Director of Legislation

2. Agenda Legislative Issues – Budget – What has happened so far – Lame Duck Session – The future PAH Update America Counts on Us NARFE-PAC 2013 Legislative Conference 2

3. Budget/National Deficit What has happened so far… – Simpson Bowles – “Gang of Six” – Biden Talks – Enactment of the Budget Control Act of 2011 Raised Public Debt Limit Requires $1.2 trillion in 10-year savings 50% from Pentagon – 50% from non-defense Creates “Supercommittee” No agreement on $1.2 Trillion in savings 3

4. 4 Fiscal Policies Soon to Expire or to be Automatically Implemented IssueHistoryOverview Bush-Era Tax Cuts Debt Ceiling Sequester Created in 2001 and 2003 as temporary tax cuts; Congress passed temporary extension in 2010 given weak economy Reduced tax rates on individual income, capital gains, dividends, and estates; limits AMT and continues tax breaks for married people Passed without much controversy, before Tea Party Established U.S. borrowing power Mandated as result of failed deal in Super Committee Used in late 1980s as mechanism to force negotiation

5. Budget/National Deficit 5

6. 6

7. SEQUESTRATION As result of failure of Supercommittee… – Takes effect January 2013 – Congress must cut $1.2 trillion or automatic across the board cuts take place – 50% from Pentagon; 50% from non-defense – Could be addressed in Lame Duck session Delay sequester by weeks to months GRAND BARGAIN with Tax Reform Last tax reform (1980’s) took 2 years to enact 7

8. What has happened so far… 8

9. Ryan Budget Ryan Budget (House Budget Resolution) – $4 Trillion in cuts – no revenue increases – Federal Employees - $368 billion cuts/10 yrs Extend pay freeze through 2015 Employees pay 5% towards retirement Reduces workforce by 10% – PASSED HOUSE – 218-199 – (Senate will not review b/c following guidelines in Budget Control Act) 9

10. Payroll Tax Holiday Passed in February 2012 – NEW CIVILIAN HIRES pay 2.3% of salary more towards retirement – – 3.1% total – $15 billion in savings over 10 years 10

11. Phased Retirement PASSED June 2012 as an offset to the Highway bill/Student Loan interest rate extension Employees can take partial pay and partial annuity (can work 20-80% of previous hours) Must use at least 20% of time to mentor others OPM currently drafting regulations 11

12. Postal Reform Senate passed bill – FECA provision Reduces worker benefits by 25-33% at retirement age Akaka amendment to strike or replace with HR 2465, a NARFE-supported bi-partisan bill (failed) – FEHBP Defeated medigap program for postal retirees Removes postal workers from FEHBP House bill – receivership Lame Duck (possibility) 12

13. Retirement Backlog President Beaudoin testifies before Congress NARFE leaders meet with OPM Director Berry Working with Senator Warner (Virginia) Amendment in Senate Postal Bill OPM has reduced back-log 13

14. The Future 14

15. LAME DUCK SESSION Immense Pressure for Action in Six-Week Window Nov 6, 2012 Election Day Dec 31, 2012 Jan 2, 2013 Nov 13, 2012 Lame Duck Session Begins Jan 1, 2013 Lame Duck Ends; Congress Resumes Bush-era tax cuts expire Emergency unemployment benefits end Payroll Holiday Tax ends Alternative Minimum Tax exemptions end Sequester takes effect $55B in mandatory defense cuts $55B in mandatory non-defense cuts Lame Duck Session

16. NEXT CONGRESS The Five Likeliest Scenarios Obama wins White House and GOP wins both chambers of Congress Combat or peace? Romney wins White House and GOP wins Congress Mandate or narrow win? Obama wins White House and Congress remains divided Déjà vu all over again? Obama wins White House and Dems win Congress The big surprise? Scenario 3: GOP President Scenario 4: GOP Sweep Scenario 5: Dem Sweep Romney wins White House and Congress remains divided The newcomer check-mated?

17. NARFE ON THE HILL 100 “in-person” meetings Submitted 25 letters expressing NARFE views Testified 4 times before Congress 17

18. Protect America’s Heartbeat Campaign and Media Update 18

19. Now on Twitter…. 19

20. More Facebook “likes” 20

21. 200+ articles, reaching 200+ Million 21

22. Defending federal workers… 22

23. Becoming the go-to source… “ This is a kill-two- birds-with-one- stone kind of proposal that would both bring down Medicare as we know it and threaten the stability of the FEHBP.” --Joseph Beaudoin 23

24. Earning a wide range of press… “Chairman Ryan's belief that it is permissible to penalize middle-class federal workers, who protect Americans and keep our nation moving forward, is frightening.” --Joseph Beaudoin 24

25. Getting creative to make news… “ 2 out of 3 American federal workers protect our nation’s Defense, Veterans and Security.” --NARFE 25

26. Giving a face to federal workers… 26

27. Reaching wide audiences… “Federal employees’ satisfaction comes from the knowledge that America is safer and stronger because they did their jobs.” --Joseph Beaudoin 27

28. Persistently reaching out… “ NARFE said voting to cut federal employees pay during Public Service Recognition Week is offensive and angering.” 28

29. Strength in numbers… “ There is no end to the list of important roles our federal workers play -- or, seemingly, to the list of thoughtless comments that plague them.” --NARFE, AFGE, NTEU 29

30. PAH Campaign Field 30

31. Action Online… 31

32. Resources & training 32

33. Many letters to the editor… 33

34. NARFE member engagement 500,000+ emails to elected officials sent 66,000+ NARFE members sent hand- written letters 30,000+ phone calls to Congress and White House 34

35. Advocacy in Action Contest Encourage and reward for grassroots activities Information Collection Points for Actions 2 awards (Jan-June & July- Dec.) Registrations for Legislative Conference 35

36. Engaging Partners 36

38. Appropriations – Fed-Postal Coalition – 30 orgs through December – Awareness campaign to engage Feds to support our friends and question those less friendly – 8 targets (MT, FL, VA, MD, NV, HI, OH, NM) – Messages Feds committed to you and America Feds are your neighbors and constituents Already contributing towards budget savings 38

39. Appropriations VA Forum with Tim Kaine (George Allen to be scheduled) 39

40. NARFE - PAC PROCEDURE Request comes in (Fed-Postal) Email State PAC Coordinator for “feedback” Strive for a two week turnaround Connect candidates with locals Send local members to local events 40

41. NARFE - PAC 2011-2012 26,000+ members have contributed Approximately $930,000. Distributed Approximately $600,000 to 116 candidates Attended more than 150 events $120,000 to four party committees 41

42. 2013 Legislative Conference March 9 – 12, 2013 Renaissance Arlington Capitol View Across street from Hyatt $169. per night Registration - $175 (same as 2011) 3 breakfasts, 2 lunches, 1 dinner 42

43. 2013 Legislative Conference NEW for 2013 NARFE staff will help schedule Hill meetings Capitol Hill 101 Trainings on Social Media, Internet and new forms of communications Best Practices 43

44. Why this works… We are building on the foundation built by Judy Park and the leadership of Dan Adcock. Julie Tagen, Director of Legislation Alan Lopatin, Legislative Counsel Chris Farrell, Legislative Representative John Hatton, Legislative Representative Jessica Klement, Communications and Legislative Representative Sarah Holstine, Legislative Specialist 44

45. What REALLY makes this work YOU Your Calls Your Emails Your donations Your Advocacy Your participation in democracy 45