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Alert #2

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Alert #1

NARFE National and NARFE’s Florida Federation of Chapters have issued an Urgent Action Alert for all members.  In response to these alerts, Chapter 1002 urges all active and retired federal employees to email or phone Representative Mack and Senators Martinez and Nelson to urge them to include Premium Conversion in the economic stimulus package currently being prepared by the Obama Administration and Congressional leaders.  A groundswell of communications sent now could provide civilian and military retirees an economic boost that they would inject into the economy when most needed.  See our January 2009 Newsletter which also addresses the Alert.

What you need to do is easy and will take but a few minutes.

Active and retired federal employees with internet access should go to www.capwiz.com/narfe and send the prepared text to Representative Mack and Senators Martinez and Nelson.   

If you do not have internet access, we suggest you take advantage of the NARFE toll free number for the Capitol Switchboard, 1-866-220-0044, which allows callers to ask for any Representative or Senator by name.  When doing so, tell Senators Martinez and Nelson, and Representative Mack:

“I ask that you urge the Congressional leadership to include the federal civilian/military Premium Conversion legislation in the stimulus package.  In the last Congress, this legislation was introduced as H.R. 1110 and S. 773.”

If you get a canned response that says tells you what you already know about these requests, email/call them back and ask them whether or not they support this issue.  Please do not accept canned responses that do not take a position.

A Very Special Investment Option for Active Employees - Courtesy of Federal News Radio, January 16, 2009

It looks like a certificate of deposit, only better. The "bank" that issues it, owned and operated exclusively by Uncle Sam, is as safe as it gets. The CD-like instrument can be opened for as little as $25. And it offers a government-guaranteed rate of return for 12 months. That rate is reset each January by the Treasury Department. This long-term investment is funded with after-tax dollars. That means when you withdraw it, before retirement, you pay taxes only on the earnings. You've already paid them on the money you put in. Finally, if you don't want a lump sum payment prior to retirement, you can use the money in your account too boost the amount of your lifetime, indexed-to-inflation civil service annuity. Oh, and it is paying 3.875 percent through the end of this year. So what is it and what's the catch?

It's called the Voluntary Contributions program. Although it's been around for years, many feds (and many federal HR offices) have never heard of it. Or, if they have, they confuse it with the Thrift Savings Plan which is completely different. The catch? The VC program is only open to current federal workers who are under the old Civil Service Retirement System. Retirees can't join it. Retirees and active workers under the FERS retirement plan cannot join the VC.

Here's how it works: You open your VC account with the Office of Personnel Management. Once established, you can invest up to 10 percent of your lifetime federal earnings into the VC. It is the ideal plan for people who, after maxing out their after-tax contributions to the TSP, still have cash in hand. Maybe you won the lottery, maybe you got an inheritance, or maybe you saved it. Whatever. You can invest (on an after-tax basis) in the VC. Unlike the TSP (pre-tax investments by payroll deduction) the VC program accepts after-tax dollar deposits by personal check. And they must be in $25 increments. That means you can put in $25, $200, $500 or any amount provided it does not exceed 10 percent of your total federal earnings.

The interest rate on the VC is set by the Treasury and is good for 12-months. This year (2009) it is 3.875 percent. Last year the VC accounts were paying 4.75 percent. Many HR offices don't know anything about the VC program. Exceptions are the NIH, the Navy and a few other agencies with first-class benefits information programs. But you don't need your agency's help. To find out more about it (in pdf form) click here.

So what is it and what's the catch?

It's called the Voluntary Contributions program. Although it's been around for years, many feds (and many federal HR offices) have never heard of it. Or, if they have, they confuse it with the Thrift Savings Plan which is completely different.

The catch? The VC program is only open to current federal workers who are under the old Civil Service Retirement System. Retirees can't join it. Retirees and active workers under the FERS retirement plan cannot join the VC.

NARFE Protest Prompts Retreat on Health Care Changes - Open Season Extended

NARFE President Margaret L. Baptiste today applauded Representatives Howard Berman (D-CA) and Howard “Buck” McKeon (R-CA) for swiftly introducing legislation in the new 111th Congress to repeal the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), Social Security laws that unjustly deny federal retirees and other public sector retirees their earned Social Security benefits.  NARFE’s President reiterated her association’s long-standing opposition to these provisions of the Social Security Act and pledged to work closely with Congress to ensure action this session. 

Baptiste thanked Representatives Berman and McKeon for introducing H.R. 235, which was immediately cosponsored by a sizable bloc of their House colleagues.  She specifically noted the federal community’s continued appreciation for the legislators’ “tireless and steadfast efforts to deliver equity to our nation’s public servants”.     

Since 1983, the GPO has prevented retirees from collecting both their federal annuity and any Social Security benefit based on their spouse’s work.  Two-thirds of the amount of the earned civil service retirement annuity is used to offset Social Security spousal or survivor benefits that might otherwise have been payable.  The WEP reduces the earned Social Security benefit of a federal worker who also receives a government annuity based on his/her own work.  Hundreds of thousands of retired federal civil servants, as well as other public sector retirees, have lost Social Security income as a result of these offsets, and many annuitants are affected by both. 

Recent data indicates approximately 465,000 Social Security beneficiaries affected by the GPO, of whom about 77 percent are women, approximately 43 percent are widowed, and 75 percent have lost their entire Social Security spousal benefit.  The data also showed roughly 972,000 Social Security beneficiaries affected by the WEP. 

President Baptiste highlighted NARFE’s ongoing work with other organizations to persuade Congress to address the adverse economic impact of the GPO and WEP.  For over 25 years, NARFE has led a legislative campaign to rid the Social Security Act of the GPO-WEP provisions.  NARFE chairs the Coalition to Assure Retirement Equity (CARE), comprised of over 40 national organizations representing public sector retirees, including teachers, police officers and city workers that seek to change the law. “The GPO and WEP arbitrarily eradicate the earned Social Security benefits of far too many public sector retirees. There is absolutely no legitimate reason for one segment of seniors being denied their Social Security benefits for which full Social Security taxes were paid” affirmed Baptiste.           

New Board installed

The Chapters new Board of Directors was installed at its December 3,2008 meeting. 

From the left is President Marc Harris, 1st VP Bob Miller, Treasurer Mary Singer, 2nd VP Rita Sammons, Communications and Programs Chair Peg Thiel, Sgt-at-Arms Shirley Sloper, Sunshine Chair Loretta Miller, and Alzheimer's Chair Martha Furrow.  Missing is Secretary Irene Eitel.

Medicare, Who Needs It? (excerpted from an article from Federal News Radio)

Benefits expert Edward A. Zurndorfer says feds often ask him if their federal health benefits (FEHBP) will continue when they retire, and if so, will they need Medicare coverage?

The answer: You can keep your FEHBP for life provided you've been enrolled in any of its plans for the 5-years prior to your retirement. So what about the relationship between the FEHBP and Medicare?  Two related issues to retirement and FEHBP are a retiree's eligibility for  Medicare and the coordination between FEHBP and Medicare. It is particularly important for employees and retirees who are currently 65 or older, or who will turn age 65 in 2008, to realize that changes may have to be made to one's FEHBP coverage as a result of Medicare eligibility. Medicare is a government sponsored insurance program that started in 1965. All employees pay into Medicare Part A through a payroll tax, currently 1.45 percent of an employee's wages, and matched by their employers.

Medicare has four parts:

Part A (Hospital Insurance) which pays for inpatient hospital care, skilled nursing facility care and hospice care.

Part B (Medical Insurance) which pays for doctors' services, outpatient hospital care, x-rays and laboratory tests, durable medical equipment and supplies, home health care (only if one does not have Part A), certain preventive care, limited ambulance transportation and other outpatient services.

Part C (Medicare Advantage Plans) provides all the benefits Medicare covers in a health maintenance organization (HMO) setup that serves only Medicare enrollees.

Part D (Medicare Prescription Drug Coverage) helps reduce the costs for most prescription drugs.
 

Note that Medicare does not cover routine or yearly physical exams or long-term care- whether it is for nursing home, assisted living or home care. Nor does it cover most dental care, routine foot care, hearing aids, routine eye care, cosmetic surgery and some vaccinations. An individual who has worked in Medicare-covered employment for at least 10 years is eligible to enroll in Medicare Part A within three months of the individual's 65th birthday. Since all federal employees have been paying the Part A payroll tax since Jan. 1, 1983, all current and future employees are eligible for Part A. They will not have to pay any monthly premiums for Part A because they have paid the Medicare Part A payroll tax for at least 10 years. Enrollment in Part A will automatically enroll the individual in Medicare Part B. Part B, unlike Part A, has a monthly premium. In 2008 the monthly premium is $96.40 per month.

FEHBP plans and Medicare Parts A and B cover the same types of expenses. If a federal employee/retiree health insurance coverage through an FEHBP plan, then why does the individual also need Medicare coverage? Since there is no monthly premium for Part A for federal employees, it makes sense for employees or retirees to enroll in Part A as soon they are age 65.

This will help cover some of the hospital expenses that one's FEHBP plan may not cover, such as deductibles, coinsurance and charges that exceed the FEHBP plan's allowable charges. Although enrolling in Part B is voluntary and Part B requires a monthly premium, enrolling in Parts A and B, along with a "fee-for-service" (FFS) FEHBP plan provides comprehensive coverage of total medical services. Parts A and B are the primary payer of one's medical expenses and a lower cost FEHBP FFS plan would be the secondary payer (the Medicare supplement or "Medigap" plan).

As a result of enrolling in Parts A and B, and being covered by a FEHBP fee-for-service (Medigap or a Medicare supplemental plan), one's medical expenses - including hospital and doctors' visits - will be paid in full. Many FEHBP plans will in fact waive their deductible coinsurance and co-payments when Medicare is the primary payer of one's medical expenses.

One could delay signing up for Part B. Medicare always has an open enrollment from January through March of every year, with coverage taking effect the following July 1st. However, one's Medicare premium will be increased by ten percent for each 12 month period that the individual could have enrolled in Part B but did not. An exception to the penalty is a federal employee who is working for the federal government at age 65 and covered by a FEHBP plan. In that case, the employee can delay enrollment in Part B until retirement. The retired employee would have to enroll in Part B within eight months of his or her retirement date in order to avoid penalty
 

Individuals who become eligible for Medicare need not wait for an FEHBP open season to switch FEHBP plans or to change their coverage (for example, high option to low option). They may do so within 30 days of their becoming eligible for Medicare.

Most federal employees and annuitants have little reason to enroll in Part D. FEHBP plans offer sufficient prescription drug coverage, usually with a small co-payment, that does not justify the need to enroll in Part D, which also has a monthly premium. Unfortunately, many federal employees and soon-to-be retirees are not aware of the coordination between FEHBP and Medicare. Federal retirees are among the few employees in the U.S. who get to keep their health insurance for retirement. Moreover, retirees pay the same premiums for the same coverage (type of plan) and type of coverage (self or self and family) as employees pay.

Federal employees should therefore look forward to their "golden years of retirement" when practically all of their hospital and doctor expenses will be paid in full through Medicare Parts A and B and their FEHBP "medigap" insurance. Few retirees in this country can brag about the fact that they get to keep their employed-sponsored and mostly paid for health insurance. While there is a monthly premium for Medicare Part B (usually deducted from one's Social Security check), a federal annuitant enrolled in Medicare can probably save some money by enrolling in a less expensive FEHBP plan (for
example, enroll in low option versus high option or basic coverage versus standard coverage).
 

 42 members and guests assemble before the June 28, 2008 Fort Myers Miracle baseball game at Hammond Stadium at the Lee County Sports Complex in Fort Myers, FL.

All 5 chapters in District 11 were represented.

President Bob Miller, 1st VP Marc Harris, and Sunshine Chair Loretta Miller represented Chapter 1002 at this year's Convention.  Nearly 280 NARFE members and guests were in attendance.

For the Chapter, the highlight of the Convention was President Miller's acceptance of a Formal Resolution honoring our long time member and Secretary Alice Hart.  Bob will be sending the Resolution to Alice's surviving nephews.

Chapter 1002 also had another winner in the Federation Dues Withholding Contest, new member Van Eitel. The Chapter has had a winner in each of the contest's 3 years.

Federation President Don Stewart, 1st VP Wally Roepke, and Secretary William Leatham were re-elected.  Ken Carter was elected as the new 2nd VP, and Ruth Blackwell is the new Treasurer.  District 11 VP Jim Greene was re-elected.

NARFE National Secretary Nat Brown was the Keynote speaker, and Region 3 Field VP Bob Harrell installed the officers. All appointees were re-appointed, including Marc Harris as PR Chair and Newsletter Editor.

Click to view the June 2008 edition of the Florida Federation Newsletter for extensive coverage of the convention.

Click to read this March 25, 2008 story from Mike Causey of Federal News Radio.

Chapter members and friends dancing the Macarena with the Ft. Myers Academy of Arts Steel Drum Band. April 2008.  Click for more pictures 

Message to all Chapter 1002 members:  If  you live in a community that has a Newsletter, or similar publication, and you think you may have some residents, either part or full-time, who would be interested in joining NARFE, please email the name and phone number of the Newsletter Editor to a member of the Board of Directors who will try to get some info to that person for inclusion in your newsletter.

District 11 of the Florida Federation of Chapters held its Annual Conference at Gulf Coast Village in Cape Coral on February 4, 2008.  Nearly 40 members from the chapters in Cape Coral, Ft Myers, S. Lee County, Naples and Peace River, were in attendance.  The Conference is one of 8 held around the state in preparation for the Association’s Annual statewide convention in Altamonte Springs in May.  Click for pictures from the conference.

New Member Sign Up Bonus.  Chapter 1002 will pay for one year of a member’s Chapter Dues ($10) for each current member who signs up a new member unitl the money runs out.  The Chapter already pays for the first meeting meal ($13) for all new members.

Dues Withholding Sign up Bonus.  Chapter 1002 will pay for one year of a member’s Chapter Dues ($10) for every member that submits a Dues Withholding form at a Chapter meeting until the money runs out.  In addition, the form will be forwarded to the Federation Member Retention Chair so it will be eligible for the Federation Dues Withholding Contest that provides $200 to the winner, and $50 each to the runner up and second runner up.   You must submit the form at a Chapter meeting to earn this bonus.

 Chapter 1002 and the Cape Coral Chamber of Commerce celebrate the Chapter's 41st Anniversary.  

Chapter 1002 donates food and $$ to Cape Coral Caring Center.  Many of the food banks in this area are in need of donations, reflecting the problems with the local economy due mainly to the slowing of the real estate industry.  At our October meeting, members agreed to collect food and cash for donations at the November and December meeting. Over 145 pounds of food (and some cash) was collected at our November meeting and delivered to the Cape Coral Caring Center on November 9, 2007. 

More is needed. So, please, look through your cupboards and pantries, and the change in your pockets, and bring what you can to the December meeting.  Donations in December will be in lieu of our annual holiday gift exchange.  If you are not coming to the December meeting and want to make a donation by check, please contact a Chapter official. Click here for a list.

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Eldercare locator.  At the May, 2006 Chapter meeting, one of our members asked for information on Eldercare.  The U.S. Department of Health and Human resources has a website which provides links to elder care services.  We have added a link to HHS' Elder Care Locator at the bottom of the left hand border. A question was also raised about elder law issues  We searched the web and found several sites with offer elder law advise.  Since we cannot judge the quality of these sites, we have not provided any direct links.  We recommend to our readers that they do a webs search on "elder law" to find what they might need. 

FEEA Celebrates 20th Anniversary.  Click here to see the FEEA Newsletter celebrating FEEA's 20th Anniversary