How Secure is Your Retirement? We tend to believe that our retirement benefits are locked in, but that is not always the case. They have been built into legislation over the years and can be changed by legislation in the future. There is only one organization out there that is regularly working with Congress and OPM to insure that your Federal retirement benefits are maintained…and hopefully, improved. That organization is NARFE – The National Active and Retired Federal Employees Association. What is NARFE? (Pronounced NARF) - How many of you are familiar with it? - It is an association of people like you and me who have come together to have a voice in their own future. It is open to…and an advocate for… Current and Retired Federal Civilian Employees, their spouses and survivors

NARFE… 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 is… 216,145 strong and 23,108 of them are Active Federal Employees. We represent 5.0 million plus federal employees and retirees and Annuitants. 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

FEDERAL RETIREMENT BENEFITS ARE NOT A GIFT Benefits are earned through long term government service and your contributions You have worked long and hard for the government for a lot of years. Among your goals in all of this time was to build a solid set of retirement benefits – particularly in the areas of Pay, health care, and thrift savings. These benefits, however, are often threatened by those who don’t see the value in your work. Over the past few years for example, there have been efforts to delay COLA and to reduce the government percentage of health benefit payments. NARFE has been an active player in beating those back.

NARFE Goals: Protect income security Protect health benefits Receive fair and equal treatment Our goals are clear and simple – in this time of increasing pressure on government budgets – to: Protect our income security Protect our health benefits, and, To ensure that federal employees, retirees and annuitants receive fair and equal treatment.

“Everything we gain, everything we lose, is by act of Congress.” LEGISLATION IS A MAJOR FOCUS Much of what we do as an organization centers on legislation – those bills drafted, and those signed into law, which bear on the benefits that we have earned through our government service. The quote here says it all, “Everything we gain, everything we lose, is by act of Congress”. “Everything we gain, everything we lose, is by act of Congress.”

What have Federal Employees Given Up Lately? Here’s the Bill. With each new Congress, we have to start over in addressing relevant issues. Here are three big ones. Windfall Elimination Provision (WEP) can reduce the earned Social Security benefits of a federal worker who retires after 1985 by up to 60 percent. Government Pension Offset (GPO) can cause spouses to lose all of their survivor Social Security benefits. Premium Conversion. Taking FEHB costs before taxable income is option for CFE, but not for retirees. Average difference is $400 annually. - Status of all three bills in Congress as of today…. NARFE Praises President for Signing into Law Legislation Which Makes Improvements in Federal Thrift Savings Plan June 22, 2009 FOR INFORMATION: Dan Adcock (703) 838-7760  National Active and Retired Federal Employees Association (NARFE) President Margaret L. Baptiste commended President Obama today for signing into law H.R. 1256, a Tobacco Regulatory Bill, which contained certain improvements to the federal Thrift Savings Plan (TSP). TSP is the tax-deferred retirement savings program created by Congress for federal employees in 1986 and is similar to "401(k)" plans offered to private-sector employees. “The TSP is the best retirement savings program in the county because the 4 million federal workers and military personnel who participate in the program create a large economy of scale which achieves administrative savings unachievable by other employer-sponsored defined contribution plans,” Baptiste said.  “The improvements in the program that became law today will help federal workers enhance their retirement planning.” One change provides that newly-hired federal employees will be automatically enrolled in the TSP and will be eligible to receive an immediate matching contribution from their employing agency.   “This initiative will increase the percentage of federal employees who make use of the TSP to ensure they are better prepared for their retirement,” she said. In addition, the new law gives the Federal Retirement Thrift Investment Board (FRTIB), the independent federal agency and fiduciary that administers the TSP, the authority to add a "Roth" option to the plan that would allow participants to make after-tax contributions to TSP accounts and withdraw their earnings tax-free upon retirement.  “Federal employees would want this feature so that they could have the same options available to private sector workers in some 401 (k) plans,” Baptiste remarked. Under current law, a spouse married to a TSP participant who passed away is required to either transfer the inherited account to an individual retirement account (IRA) or take the benefit as cash withdrawal, subject to federal income taxes.  The new law would allow the spouse who inherited the account to retain it, under the same rules as any other TSP participant.  “A growing number of surviving spouses have this right in private 401(k)s and widows and widowers of TSP participants ought to be treated no differently,” she added.  

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

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 has been heavily involved with the development of Federal retirement benefits over the years. Survivor Benefits (1950s) Creation of the Federal Employees Health Benefits Program (1960s) Thrift Savings Plan and Federal Employee Retirement System (1980s)

MAJOR NARFE PRIORITIES For 114th CONGRESS NARFE Opposes (???) Increasing FEHBP participants’ premiums by capping government contribution Reductions to federal retirement annuities or increases in employee retirement contributions without corresponding benefit increase Changing formula to calculate COLAs from CPI-W to chained CPI-U – but supports change to CPI-E Any effort to extend federal pay freeze Arbitrary reductions in the federal workforce without a strategic plan to manage the workload With each new Congress, we have to start over in addressing relevant issues. Here are three big ones. Windfall Elimination Provision (WEP) can reduce the earned Social Security benefits of a federal worker who retires after 1985 by up to 60 percent. Government Pension Offset (GPO) can cause spouses to lose all of their survivor Social Security benefits. Premium Conversion. Taking FEHB costs before taxable income is option for CFE, but not for retirees. Average difference is $400 annually. - Status of all three bills in Congress as of today…. NARFE Praises President for Signing into Law Legislation Which Makes Improvements in Federal Thrift Savings Plan June 22, 2009 FOR INFORMATION: Dan Adcock (703) 838-7760  National Active and Retired Federal Employees Association (NARFE) President Margaret L. Baptiste commended President Obama today for signing into law H.R. 1256, a Tobacco Regulatory Bill, which contained certain improvements to the federal Thrift Savings Plan (TSP). TSP is the tax-deferred retirement savings program created by Congress for federal employees in 1986 and is similar to "401(k)" plans offered to private-sector employees. “The TSP is the best retirement savings program in the county because the 4 million federal workers and military personnel who participate in the program create a large economy of scale which achieves administrative savings unachievable by other employer-sponsored defined contribution plans,” Baptiste said.  “The improvements in the program that became law today will help federal workers enhance their retirement planning.” One change provides that newly-hired federal employees will be automatically enrolled in the TSP and will be eligible to receive an immediate matching contribution from their employing agency.   “This initiative will increase the percentage of federal employees who make use of the TSP to ensure they are better prepared for their retirement,” she said. In addition, the new law gives the Federal Retirement Thrift Investment Board (FRTIB), the independent federal agency and fiduciary that administers the TSP, the authority to add a "Roth" option to the plan that would allow participants to make after-tax contributions to TSP accounts and withdraw their earnings tax-free upon retirement.  “Federal employees would want this feature so that they could have the same options available to private sector workers in some 401 (k) plans,” Baptiste remarked. Under current law, a spouse married to a TSP participant who passed away is required to either transfer the inherited account to an individual retirement account (IRA) or take the benefit as cash withdrawal, subject to federal income taxes.  The new law would allow the spouse who inherited the account to retain it, under the same rules as any other TSP participant.  “A growing number of surviving spouses have this right in private 401(k)s and widows and widowers of TSP participants ought to be treated no differently,” she added.  

How Can You Help? Learn more about NARFE and what it does Stay up on what is happening in Congress Go to www.protectAmericasHeartbeat.com 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 NARFE and this effort to your Federal Employee co-workers Join us in NARFE NARFE has been heavily involved with the development of Federal retirement benefits over the years. Survivor Benefits (1950s) Creation of the Federal Employees Health Benefits Program (1960s) Thrift Savings Plan and Federal Employee Retirement System (1980s)

OTHER NARFE PROJECTS Alzheimer’s Research Raised over $11,958,152 Federal Employees Education and Assistance Fund (FEEA) Sixty $1,000 Scholarships NARFE-PAC Scholarship Fund: the number of scholarships awarded was increased in 2005 to a total of 60 (six per region), each in the amount of $1,000. WHO IS ELIGIBLE? Children, grandchildren, stepchildren and great-grandchildren of all current NARFE members. Applicants must be current high school seniors or college students working toward an accredited degree and enrolled in a two- or four-year postsecondary, graduate, or postgraduate program. Applicants must have at least a 3.0 Grade Point Average (GPA) on a 4.0 scale. Current college freshmen must have at least a 3.0 for the Fall/Winter semester prior to their application date.

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”

WHERE CHAPTERS ARE In Washington State: Your handouts will include specific information on local chapter meeting times and location. 1,175 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 Monthly magazine for members. Some regular features: Status of legislative issues Retirement Benefits articles and tips Health Benefits information Questions and Answers to individual member queries Articles aimed at current CSRS and FERS employees. (see “Can You Afford to Retire” edition.) 10 Worst Mistakes Federal Employees and Retirees Make – and the Next 10 worst mistakes. Information on NARFE Perks Application forms

The Web Sites www.narfe.org Legislation Q & A NARFE Magazine - You can sign up on the web site now to see Current Federal Employee Info Retirement Tips Insurance Benefits Member Discounts

WHAT DOES IT COST TO BELONG? NARFE membership dues are $40 per year. Payment options include bill pay, credit card, Cash & money order

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