NARFE MEMBERSHIP John Clements Director of Membership

Total Members – Year End

NARFE Membership – Year End Strength

Background Paper Effects of Mandatory Chapter Membership on NARFE December 31, 2006 Membership Report YEAR MEMBERS +/- YEAR MEMBERS +/- 291,718 1993 445,449 +1,330 362,736 +71,018 1994 449,589 +4,140 418,540 +55,804 1995 450,388 +799 487,570 +69,030 1996 440,775 -9,613 491,876 +4,306 1997 427,426 -13,349 486,193 -5,683 1998 418,245 -9,181 491,067 +4,874 1999 422,520 +4,275 489,217 -1,850 2000 409,365 -13,155 489,758 +541 2001 404,909 -4,456 478,370 -11,388 2002 389,649 -15,260 477,148 -1,222 2003 378,461 -11,188 No Data* No Data * 2004 365,821 -12,640 462,772 -14,376 2005 347,419 -18,402 ** 451,717 -11,055 2006 341,966 -5,453 444,119 -7,598 The most dramatic increase in membership is seen from 1979-1982. This could be attributed to the Reagan Administration that bore a “Threat” factor. The Republicans were anti-government and anti civil service. They disbanded the Air Traffic Controllers Union, established the “Grace Commission” and went on diet COLAs during this time frame. During that period, we also had almost “unlimited” mailings to retirees using OPM data. In 1982, OPM discontinued these mailings. Membership was relatively stable from 1983-1986, and started to drop in 1987. The increase in membership from 1993 through 1995 is attributed to the return of the OPM blind mailings. A one-time additional OPM mailing in 1999 caused an increase in membership that year. * Great computer crash of 1989 ** Increase partly due to the dues increase (30%)

Membership Gain / Loss 1979 New Members recruited 91,925 64,973 National 26,952 Chapter Deaths 6,882 Non-Renewing 14,185

National and Chapter Recruiting

Percentage of Members Retained

Why Members Drop

Membership Surveys Dorf & Stanton 1992 NARFE Survey 1992 Beta Research Membership Study 2000 Beta Research Former Member Study 2001 NARFE Survey 2005

Dorf & Stanton Chapter Level and National Involvement Recommendation Many respondents do not wish to pay chapter dues because they “do not wish to participate…” Recommendation “Make chapter membership voluntary”

NARFE In-House Survey - 1992 Reasons for Non-Renewal Required Chapter Membership 18.4% Unreported Death 18.0% Ill / Nursing Homes / Assisted Care 10.0% Misplaced Renewal Notice 7.0%

BETA Research Membership Study 2000 “If the chapter requirement was removed” Total 65 or Under 65+ … Yes, would remain 61% 55% 63% … No, would not (Includes no answer) 39% 45% 36%

BETA Research Former Member Survey 2002 Disliked having to belong to a chapter 22% Not enough values for dues 19% Not enough time to devote to membership 19% Dissatisfaction with perks, Retirement Life, Legislative Program, & NARFE services 13%

NARFE Survey 2005 Major Reasons for Non-Renewal Death 22% Ill Health 17% Dissatisfaction with Chapters 13% NARFE not doing enough or what they promised 12% Membership is expensive 10%

Conclusion Survey data very consistent Top three reasons for Non-Renewal Chapter Requirement Unreported Deaths Ill-Health (Nursing Home / Assisted Living)

CY 2006 Conclusion 34,726 Members Dropped / Cancelled 8,763 Members were reinstated 25,963 Actually Dropped 25,963 x 20% Dropped for Chapter Requirement 5,200 25,963 x 20% Unreported Deaths 5,200 25,963 x 10% Assisted Care 2,600 Total Unrecoverable Members 13,000