NARFE News

Electronic copies of our newsletters are available from the links to the left. Our newsletters are published monthly, except for July and August.

NEWS:

This NARFE Legislative Hotline, number 702, was released Thursday, February 4^th. The FY 2011 budget blueprint, debt limit and Medicare fairness are covered. The next scheduled Hotline is set for February 12^th. (492 words; 3:26)

Obama Budget: No Reductions in Federal Retiree Benefits: The Obama Administration’s budget blueprint for fiscal year (FY) 2011 does not recommend any reductions in the earned retirement and health security of federal annuitants and workers. In a press release, NARFE President Margaret L. Baptiste lauded the administration's decision to renew traditional support for pay-increase parity between federal civilian employees and military personnel. However, Baptiste stated her concern about a plan to force onto the retirement rolls federal workers sidelined by workplace injuries or illnesses and currently receiving workers’ compensation. The press release is available on NARFE web site. (www.narfe.org at http://www.narfe.org/departments/home/articles.cfm?ID=2014)

Budget-Cutting Commission and Fast Track Procedure: On February 4, the House passed legislation, House Joint Resolution 45 by a vote of 233-187, already approved by the Senate to 1) raise the federal debt limit and 2) create statutory PAYGO law. President Obama will issue an Executive Order creating a bipartisan fiscal commission with a mandate to propose changes in both spending and tax policy. Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi pledged that the fiscal commission’s proposal would get a vote in each body. Under the arrangement outlined in a letter, the Senate would vote on the package without amendment (but it could be filibustered) in November and, if passed, the House would take up the measure but also be permitted to consider other alternatives to the Commission’s recommendation. NARFE is concerned that this commission could single out active and retired federal employees for sacrifices not required of other workers or retirees.

Medicare Part B Premium Fairness: Federal, state and local government retirees who are not eligible to receive Social Security have seen their Medicare Part B premiums jump from $96.40 per month to $110.50 in 2010. Current law protects (“holds harmless”) most other beneficiaries from a Part B rate hike when there is no Social Security cost of living adjustment (COLA). On September 24, the House passed H.R. 3631, the Medicare Premium Fairness Act, which would protect over 1 million federal, state and local government retirees from the Part B premium increase in 2010. The Senate needs to approve this needed legislation, too. If you are not among the 9,113 NARFE e-activists who have already used the Legislative Action Center, tell your Senators to pass H.R. 3631. You can do that by sending them an e-mail through the Legislative Action Center (using the following link: http://capwiz.com/narfe/issues/alert/?alertid=14260196)

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and sent to over 52,000 GEMS e-mail addresses. Each delivery channel is a service of NARFE, the National Active and Retired Federal Employees Association.

Top of Page

This NARFE Legislative Hotline, number 700, was released Friday, January 22^nd. Health Care, a Fast-Track Commission and Medicare Premiums are covered. Updated action alerts allow NARFE members to protect their interests. The next scheduled Hotline is set for January 29^th. (800 words; 5:09)

Feds Exempt from the Excise Tax on “Cadillac” Health Plans Until 2018: As reported last week, a tentative agreement was reached on January 14 between Congressional leaders, labor unions and President Obama regarding a provision in the Senate-passed health care reform bill that would assess a nondeductible 40-percent excise tax on insurance carriers offering so-called “high value” or “Cadillac” health insurance policies. Under the initial agreement, health plans covered by collective bargaining agreements and plans that cover state and local government employees would be exempt from the excise tax until 2018. All other plans, including those covering federal workers and annuitants, would have been subject to the tax in 2013.

In response to letters NARFE President Margaret Baptiste sent to the congressional leadership, amplified by at least 12,439 e-mail messages sent by NARFE members urging their lawmakers to resolve this inequity, negotiators agreed that Federal Employees Health Benefits Program (FEHBP) plans that cover federal workers and annuitants would not be subject to the “Cadillac” tax until 2018. House Majority Leader Steny Hoyer (D-MD), Reps. Gerald Connolly (D-VA), Chris Van Hollen (D-MD) and Sen. Barbara Mikulski (D-MD) were instrumental in persuading the president and other key lawmakers to include the federal family in the 2018 tax delay.

A political hurdle to the agreement was removed when lawmakers and the Administration decided that Members of Congress and Executive Branch political appointees – who also participate in FEHBP – would be excluded from the tax delay. Unlike other federal workers, legislators and political appointees would be subject to the tax in 2013 instead of 2018.

While the Democratic Party’s recent loss of their 60 seat filibuster-proof Senate majority further complicates the consideration of health care reform legislation, the “Cadillac” tax could be included in the final bill. To mitigate the affect of the tax on federal workers and annuitants, NARFE members must continue to insist that their lawmakers make good on the deal to exempt feds from the health plan tax until 2018. For that reason, we ask that you send an updated message to your congressional delegation using our Legislative Action Center: http://capwiz.com/narfe/issues/alert/?alertid=14590686 Additional information about “Cadillac” health plan tax and the compromise are available at this link.

Budget-Cutting Commission and Fast Track Procedure: Despite the short term increase in the debt limit enacted in late December (P.L. 111-123), another increase in the debt limit will be needed before the end of the month. Separate legislation (H.R. 1557 and S. 2853) to create a commission, which could force changes to entitlement and other program spending and tax policy through the use of a Congressional fast-track procedure, could be added to the debt limit legislation. NARFE is concerned that such a commission could single out the earned federal civil service retirement and health benefits for reductions.

This week (January 18-22), Senate Democratic moderates, congressional leaders and the Administration tried to negotiate a compromise in which the commission would be created by executive order and the House and Senate would agree to consider the commission’s recommendation as legislation. However, the moderates responded by calling on the Administration to support guaranteeing the use of the fast-track procedure by requiring it through legislation rather than by executive order. They continue to support attaching S. 2853 to the debt limit legislation the Senate is currently considering. To urge your two U.S. Senators to oppose the fast-track commission proposal, use the NARFE Legislative Action Center (http://capwiz.com/narfe/issues/alert/?alertid=14498696).

Medicare Part B Premium Protection: Federal, state and local government retirees who are not eligible to receive Social Security have seen their Medicare Part B premiums jump from $96.40 to $110.50 in 2010. Current law protects (“holds harmless”) most other beneficiaries from a Part B rate hike when there is no Social Security cost of living adjustment. On September 24, the House passed H.R. 3631, the Medicare Premium Fairness Act, which would protect over 1 million federal, state and local government retirees from the Part B premium increase in 2010. The Senate needs to approve this needed legislation, too. That’s why Senators need to hear from you now if they are to resolve this inequity. You can do that by sending them an e-mail through the Legislative Action Center (using the following link: http://capwiz.com/narfe/issues/alert/?alertid=14260196 )

Top of Page

This NARFE Legislative Hotline, number 699, was released Friday, January 15^th. This Hotline reports December consumer price news. Major news, requiring member action on the health care overhaul’s impact on the FEHBP is also covered. The next scheduled Hotline is set for January 22^nd. (788 words; 5:04)

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.1 percent in December 2009, according to the Bureau of Labor and Statistics (www.bls.gov/cpi or 202/691-6994). Released on January 15^th, the CPI-W for December is 211.703. For purposes of calculating the next COLA (cost-of-living adjustment), the index is currently 1.8 percent below the 2008 third quarter average (due to price deflation, in the past measurement year, the 2008 third quarter average is still the point of comparison) base index of 215.5. January consumer price indices will be released on Friday, February 19, 2010.

More importantly, December’s data completes the measurement year for the cost-of-living adjustment (COLA) for benefits awarded under the Federal Employees Compensation Act (FECA) to individuals who left the workforce due to work-related injuries or illnesses. FECA benefits are adjusted according to each calendar year’s percentage change in the CPI-W and payable in the following year’s month of April. Because December’s index (211.703) is 3.4 percent higher than the December 2008 base of 204.813, there will be a 3.4 percent cost of living adjustment for FECA beneficiaries who received NO COLA a year ago.

Health Care Overhaul and the Excise Tax on “High Value” Insurance Plans: A tentative agreement was reached on January 14 between Congressional leaders, labor unions and President Obama regarding a provision in the Senate-passed health care reform bill that would assess a nondeductible 40-percent excise tax on insurance carriers offering so-called “high value” health insurance policies. According to reports in the media, health plans covered by collective bargaining agreements and plans that cover state and local government employees would be exempt from the excise tax until 2018. All other plans, including those covering federal workers and annuitants, would be subject to the tax starting in 2013.

We must emphasize that the deal is TENTATIVE, which means there is a short window of opportunity to include feds in the compromise. That’s why NARFE President Margaret Baptiste sent the congressional leadership and the president a letter on January 14 urging them to resolve this inequity. NARFE members must also take immediate action. We ask that you send an updated message to your congressional delegation using our Legislative Action Center no later than Tuesday, January 19: http://capwiz.com/narfe/issues/alert/?alertid=14454086 . Additional information about the compromise is also available at this link. NARFE’s toll free telephone number for the capitol switchboard provides NARFE members an additional channel to implore their own Representative and two Senators to “include federal workers and retirees in the proposal to delay the health plan excise tax.” The toll-free number is 1-866-220-0044. Call now and ask for your Representative and Senators by name.

Budget-Cutting Commission and Fast Track Procedure: Despite the short term increase in the debt limit enacted in late December (P.L. 111-123), another increase in the debt limit will be needed. Separate legislation (H.R. 1557 and S. 2834) to create a commission, which could force changes to entitlement and other program spending and tax policy through the use of a Congressional fast-track procedure, could be added to the debt limit legislation. NARFE is concerned that such a commission could single out the earned federal civil service retirement and health benefits for reductions. To urge your two U.S. Senators to oppose the fast-track commission proposal, use the NARFE Legislative Action Center (http://capwiz.com/narfe/issues/alert/?alertid=14498696).

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and sent to over 51,000 GEMS e-mail addresses. Each delivery channel is a service of NARFE, the National Active and Retired Federal Employees Association.

Top of Page

This NARFE Legislative Hotline, number 698, was released Thursday, January 7^th. Congress is in recess. The House returns January 12, the Senate a week later. This Hotline urges each NARFE members to preserve NARFE’s most recent victory by contacting his or her congressional delegation. The next scheduled Hotline, set for January 15^th, will report December consumer price news. (653 words; 3:58)

Health Care Reform: The Senate leadership’s negotiated compromise to get the 60 votes needed to pass their health care reform bill in December contains language drafted and suggested by NARFE that would move to safeguard the Federal Employees Health Benefits Program (FEHBP). The protective language was added by the Senate leadership in response to concerns raised by NARFE and federal-postal organization allies regarding a proposal that would have the Office of Personnel Management (OPM) play a significant role in multi-state health care reform -- partially administering a health care delivery system consisting of at least two national, private insurance plans.

The differences between the House and Senate-passed versions of health care reform legislation must now be reconciled. Please urge your Representative and Senators to include the Senate’s FEHBP protections in the final health care reform legislation if House and Senate negotiators agree to require OPM to administer multi-state health plans by sending them e-mail through the NARFE Legislative Action Center: http://capwiz.com/narfe/issues/alert/?alertid=14454086

Beyond the role of OPM in the multi-state plans, nothing in the Senate and House-approved bills has a specific impact on the FEHBP. Still, any comprehensive plan that changes insurance law, provider financing, taxation policy and health infrastructure will have some ramifications on how the FEHBP operates in the larger health system.

While NARFE considers the recent FEHBP protections in the Senate bill a victory, that does not mean we have endorsed the overall health care reform legislation. NARFE continues to take no formal position on the whole bill since it continues to change and because it could limit the Association’s ability to effect change in the outcome of any final measure.

Budget Cutting Commission and Fast Track Procedure: Despite the short term increase in the debt limit, signed into law (P.L. 111-123) by President Obama on December 29, allowing the government to pay its bills until February, another increase in the debt limit will be needed. Separate legislation (H.R. 1557 and S. 2834) to create a commission which could force changes to entitlement and other program spending and tax policy through the use of a Congressional fast-track procedure could be added to the debt limit legislation. NARFE is concerned that such a commission could single out the earned federal civil service retirement and health benefits for reductions. To urge your two U.S. Senators to oppose the fast-track commission proposal use the Legislative Action Center on the NARFE web site: http://capwiz.com/narfe/issues/alert/?alertid=14498696 .

Medicare Part B Premium Protection: Federal, state and local government retirees who are not eligible to receive Social Security have seen their Medicare Part B premiums jump from $96.40 to $110.50 in 2010. Current law protects (“held harmless”) most other beneficiaries from a Part B rate hike when there is no Social Security cost of living adjustment. On September 24, the House passed H.R. 3631, the Medicare Premium Fairness Act, which would protect over 1 million federal, state and local government retirees from the Part B premium increase in 2010. The Senate needs to approve this needed legislation too. That’s why Senators need to hear from you now if they are to resolve this inequity in the New Year. You can do that by sending them an e-mail through the following link: http://capwiz.com/narfe/issues/alert/?alertid=14260196

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and sent to over 51,000 GEMS e-mail addresses. Each delivery channel is a service of NARFE, the National Active and Retired Federal Employees Association.

Top of Page

Special NARFE Legislative Hotline: Victory in Senate Health Care Compromise

This is a special edition of the NARFE Legislative Hotline released on Tuesday, December 22, to inform NARFE members about a victory on health care reform legislation. The next scheduled, and first Hotline of 2010, is set for January 15, and will report December consumer price news. As always, a special edition is issued whenever needed. (388 words; 2:29)

The Senate leadership’s negotiated compromise to get the 60 votes needed to pass health care reform contains language drafted and suggested by NARFE that would move to safeguard the Federal Employees Health Benefits Program (FEHBP). The protective language was added by the Senate leadership in response to concerns raised by NARFE and federal-postal organization allies regarding a proposal that would have the Office of Personnel Management (OPM) play a significant role in national health care reform -- partially administering a health care delivery system consisting of at least two national, private nonprofit insurance plans.

The compromise will be added to the bill through the approval of the 383-page “manager’s amendment” which includes the OPM-administered “multi-state” health plans and following FEHBP protections:

• Premiums of FEHBP and the proposed OPM-administered multi-state plans would be calculated in separate risk pools.
• The OPM Director would be required to ensure that the multi-state plans are administered separately from the FEHBP.
• FEHBP insurance carriers would not be required to offer coverage through the multi-state program.
• The OPM Director may establish separate units or offices within the agency to ensure that the administration of the multi-state plans do not interfere with the effective administration of FEHBP.
• The OPM Director may not allocate fewer financial or personnel resources to the agency’s administration of FEHBP.
• The OPM Director may appoint additional personnel to carry out the administration of multi-state plans.
Senators voted 60-39 to accept the manager's amendment around 8 AM Tuesday, December 22, clearing the way for one remaining procedural vote on Wednesday, December 23 and a final vote on the legislation Thursday, December 24.

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and sent to over 51,000 GEMS e-mail addresses. Each delivery channel is a service of NARFE, the National Active and Retired Federal Employees Association.

Top of Page

This NARFE Legislative Hotline, number 696, was released Friday, December 18^th. Due to the high stakes and potential threats to federal employee and retiree interests, this Hotline urges NARFE members to continue sending the current action alerts. Consumer price news is reported. The next, and perhaps final, Hotline of 2009 is set for Wednesday, December 23^rd. The first scheduled Hotline of 2010, January 15, will report December consumer price news. As always, a special edition is issued whenever needed. (752 words; 5:20)

There is more than the usual uncertainty on Capitol Hill due to partisan brinksmanship in the Senate. In this situation the best course of action for NARFE is to continue our focus on defending our earned benefits.

NARFE must remain concerned that Senate interest in an OPM-administered public plan could undermine the integrity of the Federal Employees Health Benefits Program (FEHBP) unless our health insurance program and the proposed OPM-administered plan are negotiated and managed separately. The NARFE Legislative Department is currently working with key Senators on legislative language that would protect the FEHBP. In response to this high stakes threat, NARFE President Margaret L. Baptiste requests that each NARFE member amplify the legislative staff’s work by using the following link to the NARFE Legislative Action Center to inform your Representative and both Senators of NARFE’s position: http://capwiz.com/narfe/issues/alert/?alertid=14454086

On December 16, the House passed H.R. 4314, a short term increase in the debt limit which will allow the government to pay its bills until February when another increase in the debt limit will be needed. The Senate leadership plans to bring up the House-passed debt extension before they recess for Christmas. However, Senator Judd Gregg, R-NH, the ranking member on the Senate Budget Committee, plans to offer an amendment to H.R. 4313 that would create a commission which would force changes to entitlement and other program spending and tax policy through the use of a Congressional fast-track procedure. NARFE is concerned that such a commission could single out the earned federal civil service retirement and health benefits for reductions. To urge your two U.S. Senators to oppose the fast-track commission proposal use the Legislative Action Center on the NARFE web site: http://capwiz.com/narfe/issues/alert/?alertid=14429286 .

Even if the Gregg amendment fails, Gregg and Senate Budget Committee Chairman Kent Conrad, D-ND, plan to push for the budget cutting commission and fast-track procedure when Congress revisits the debt limit in February.

Federal, state and local government retirees who are not eligible to receive Social Security were told this month by the Social Security Administration that their Medicare Part B premiums would jump from $96.40 to $110.50 in 2010. However, current law protects most other beneficiaries from a Part B rate hike when there is no Social Security cost of living adjustment. On September 24, the House passed H.R. 3631, the Medicare Premium Fairness Act, which would protect over 1 million federal, state and local government retirees from the Part B premium increase in 2010. The Senate needs to approve this needed legislation too, but that is unlikely to happen before the recess. That’s why Senators need to hear from you now if they are to resolve this inequity in the New Year. You can do that by sending them an e-mail through the following link: http://capwiz.com/narfe/issues/alert/?alertid=14260196

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.2 percent in November 2009 according to the Bureau of Labor and Statistics (www.bls.gov/cpi or 202/691-6994). Released on December 16^th, the CPI-W for November is 212.003. For purposes of calculating the next COLA (cost-of-living adjustment) the index is currently 1.6 percent below the 2008 third quarter average (due to price deflation, in the past measurement year, the 2008 third quarter average is still the point of comparison) base index of 215.5. December consumer prices indices will be released on Friday, January 15, 2010.

Benefits awarded under the Federal Employees Compensation Act (FECA) to individuals who left the workforce due to work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W and payable in the following year’s month of April. November’s index (212.003) is 3.5 percent higher than the December 2008 base of 204.813.

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and sent to over 51,000 GEMS e-mail addresses. Each delivery channel is a service of NARFE, the National Active and Retired Federal Employees Association.

Top of Page

This NARFE Legislative Hotline, number 695, was released Friday, December 11^th. This edition informs NARFE members of a Senate proposal for an OPM-Administered health plan that could threaten FEHBP. Information on a federal pay raise is covered. The next scheduled Hotline, set for Friday, December 18^th, will report on November consumer price news. (554 words; 3:48)

Although over seven thousand NARFE activists responded to the “Rapid Response” requested in the December 4 Hotline, a new threat has arisen requiring NARFE member action by December 16. As reported in our December 10 press release (full text at http://www.narfe.org/departments/home/articles.cfm?ID=1970) a group of moderate and liberal Democratic Senators are assisting the Senate leadership’s search for a compromise able to gather 60 Senate votes. While this compromise achieved a potential linchpin to floor passage of the Senate health care plan, it would have the Office of Personnel Management (OPM) administer a health care delivery system consisting of at least two national, private nonprofit insurance plans or a government plan.

NARFE is concerned that an OPM-administered public plan could undermine the integrity of the Federal Employees Health Benefits Program (FEHBP) unless our health insurance program and the proposed OPM-administered plan are negotiated and managed separately. The NARFE Legislative Department is currently working with federal-friendly Senators on legislative language that would protect the FEHBP. In response to this new and urgent threat, NARFE President Margaret L. Baptiste requests that each NARFE member, no later than the close of business on Wednesday, December 16, amplify the NARFE staff work by using the following link to the NARFE Legislative Action Center to inform your Representative and both Senators of NARFE’s position: http://capwiz.com/narfe/issues/alert/?alertid=14454086

On December 10^th, the House passed 221 - 202 (Roll no. 949) the conference report on an omnibus spending package (H.R. 3288). This conference report includes a 2 percent average pay hike for civilians in 2010. The measure allots 1.5 percent of the overall figure to an increase in base pay, and 0.5 percent to a boost in locality pay. Unlike most recent years, the bill does not provide pay parity between civilians and members of the military. The 2010 National Defense Authorization Act signed in October provides a 3.4 percent military raise; lawmakers will decide on a final figure as part of the Defense appropriations bill.

The statutory limit on the public debt must be raised this month in order for the Treasury to raise cash to pay the government’s bills. Some Senators are withholding their support for the House passed debt limit increase until the Senate leadership agrees to include a proposal to create a commission that would force changes to entitlement and other program spending and tax policy through the use of a Congressional fast-track procedure. NARFE is concerned that such a commission could single out the earned federal civil service retirement and health benefits for reductions. To urge your two U.S. Senators to oppose the fast-track commission proposal use the Legislative Action Center on the NARFE web site: http://capwiz.com/narfe/issues/alert/?alertid=14429286 .

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org,, made available to NARFE-Net Coordinators; and sent to over 51,000 GEMS e-mail addresses. Each delivery channel is a service of NARFE, the National Active and Retired Federal Employees Association.

Top of Page

This NARFE Legislative Hotline, number 694, was released Friday, December 4sup>th. This edition alerts NARFE members to a new threat to federal retirement requiring an immediate response. An open season reminder is included. The next scheduled Hotline is set for Friday, December 11^th. (460 words; 3:19)

Due to the current fiscal crisis, the statutory limit on the public debt must be raised this month in order for the Treasury to raise cash to pay the government’s bills. Some Senators are withholding their support for the House passed debt limit increase until the Senate leadership agrees to include a proposal to create a commission that would force changes to entitlement and other program spending and tax policy through the use of a Congressional fast-track procedure. NARFE is concerned that such a commission could single out the earned federal civil service retirement and health benefits for reductions. In response to this immediate threat, NARFE President Margaret L. Baptiste requests that all NARFE members use the following link to the NARFE Legislative Action Center to urge their two U.S. Senators to oppose the fast-track commission proposal: hhttp://capwiz.com/narfe/issues/alert/?alertid=14429286 .

The NARFE Legislative Department salutes NARFE activists who made November a record month (24,733 e-mail messages)./p>

NARFE’s capacity for face-to-face meetings, history of conducting them and chapter structure in every congressional district are still the sharpest tools in our advocacy toolbox. The House and Senate sessions will keep legislators on Capitol Hill right up until Christmas. Just released House plans for January 2010 show votes planed on the following days: January 12^th and 13^th and the 19^th, through the 22^nd and the 26^th and 27^th. Thus the first week in January may be a good time to meet individually or as a NARFE group with your Representative.

This year's open season period for health benefits and federal dental and vision benefits officially ends December 14. For those retirees who have waited patiently to either receive materials they requested from the Office of Personnel Management (OPM) or are just now requesting brochures and other open season material, don't panic. As they have in past years, OPM's Open Season contractor will include a printed message with the materials ordered granting the individual extra time to make an enrollment change. However, those who have not contacted OPM for materials and have not submitted a change in benefits by December 14 will have to wait until the next open season to do so.

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and sent to over 51,000 GEMS e-mail addresses. Each delivery channel is a service of NARFE, the National Active and Retired Federal Employees Association.

Top of Page

This NARFE Legislative Hotline, number 690, was released Friday, October 30^th. This edition celebrates enactment of civil service improvements, urges NARFE member action on the Medicare Premium Fairness Act and defending the FEHBP and notes NARFE’s upcoming testimony. The next Hotline, set for Friday, November 6^th, will report on the two House and two statehouse elections being held on November 3^rd. (699 words; 5:05)

On October 28, President Obama signed the Conference Report on the fiscal year 2010 National Defense Authorization Act (H.R. 2647, now P.L. 111-84). During the past several years, NARFE has played a leading role, in coalition with other federal and postal union and management organizations, in overcoming several obstacles to pass the needed civil service improvements included in the final Defense Authorization bill.

The new law 1) allows federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity; 2) permits Federal Employees Retirement System (FERS) workers to initially credit half, and in 2014 all, of their unused sick leave toward retirement; 3) phases out the non-foreign cost-of-living adjustment system for federal employees in Hawaii, Alaska and U.S. territories, replacing it over several years with locality pay, which can be counted for retirement purposes; and 4) ends the Department of Defense’s pay-for-performance personnel system, the National Security Personnel System (NSPS), restoring employees to the federal General Schedule pay system. NARFE’s press release provides additional information as will December’s NARFE. (Use http://www.narfe.org/departments/home/articles.cfm?ID=1926)

The Obama Administration has called for prompt Senate passage of NARFE supported House passed (406 - 18 Roll Call Vote no. 737) legislation, H.R. 3631, to protect all Medicare Part B beneficiaries from a premium increase in 2010, including federal retirees who are not eligible to receive Social Security benefits. NARFE worked tirelessly behind the scenes on this legislation for the past three months. NARFE members should help “close the deal” by urging their Senators to quickly pass H.R. 3631 to allow the Medicare agency to prepare for 2010. The NARFE Legislative Action Center features an Action Alert which allows you to send NARFE’s message to both your Senators. (The direct path to this Urgent Action Alert is http://capwiz.com/narfe/issues/alert/?alertid=14260196)

The House leadership has formally introduced a nearly 2,000 page bill (H.R. 3962) overhauling health care and plans for its floor consideration during the first week of November.span style="mso-spacerun:yes"> AAs this legislation moves first through the House and then the Senate, lawmakers must follow the President’s promise of allowing all Americans – including feds – to keep the health insurance they have.

Use either the Legislative Action Center or NARFE’s toll free access to the Capitol switchboard (1-866-220-0044) to tell your own Representative and both your Senators to “allow FEHBP enrollees, like other Americans, to keep the plan they have now.”span style="mso-spacerun:yes"> Use the following URL to read more and send an e-mail to your own congressional delegation, one Representative and two Senators: http://capwiz.com/narfe/issues/alert/?alertid=14174906) ((That NARFE sponsored toll free number is 1-866-220-0044, ask for your Members by name or supply your ZIP Code.)

On Tuesday, November 3, 2009 at 2:00 p.m. the House Subcommittee on Federal Workforce, Postal Service and the District of Columbia will hold a hearing entitled “Managing the Thrift Savings Plan to Thrive.”span style="mso-spacerun:yes"> NARFE President Margaret L. Baptiste’s testimony will be webcast live and available as part of the subcommittee’ archive. To see the webcast go to the Subcommittee’s website (http://federalworkforce.oversight.house.gov/) just before the hearing is to begin. AA link to the webcast will be displayed.

The Conference Report (House Report 111-316) on the Department of the Interior 2010 Appropriations bill (H.R. 2996) passed in both the House and Senate on October 29, provides (in Division B) for further continuing appropriations through December 18.span style="mso-spacerun:yes"> The continuing appropriations applies to all agencies and operations not covered by enacted appropriations. CCongressional leaders are signaling that the original adjournment target, October 30, is now December 18.

(Hundreds of deep-pocketed firms spend thousands of dollars to subscribe to (but often not read) specialty publications that post much of their content on free web sites.span style="mso-spacerun:yes"> Among the best is Congressional Quarterly (CQ), the print provider now publishing much content for electronic subscribers. CQ’s free web site is www.cqpolitics.com. Recent coverage of emerging House races in four regions would give NARFE members a good taste of what is available.

The South: http://www.cqpolitics.com/wmspage.cfm?docID=news-000003229330

The Northeast: http://www.cqpolitics.com/wmspage.cfm?docID=news-000003230213

The Midwest: http://www.cqpolitics.com/wmspage.cfm?docID=news-000003230529

The West: http://www.cqpolitics.com/wmspage.cfm?docID=news-000003230541)

Top of Page

October 28, 2009
FOR INFORMATION: Dan Adcock (703)838-7760

NARFE Thanks President Obama for Signing into Law Re-Employed Annuitant and FERS Sick Leave Bills; Association’s Persistence Results In Victory

National Active and Retired Federal Employees Association (NARFE) President Margaret L. Baptiste today commended President Obama for signing into law the Fiscal Year 2010 Defense Authorization bill, which includes several civil service improvements long sought by NARFE.

“Enactment of this legislation to eliminate inequities, increase productivity and address the skills shortage in the civil service is a great victory for active and retired federal employees — and something that NARFE has worked for behind the scenes for a long time,” said NARFE President Baptiste. “We are happy the president has signed this important bill into law, and we are grateful to our friends in Congress who moved heaven and earth to include the civil service improvements in the final legislation.”

BBaptiste praised Reps. Steny H. Hoyer, D-MD; Chris Van Hollen, D-MD; Frank R. Wolf, R-VA; James P. Moran, D-VA; Eleanor Holmes Norton, D-DC; Gerry E. Connolly, D-VA; John P. Sarbanes, D-MD; Donna F. Edwards, D-MD; Elijah E. Cummings, D-MD; and C.A. “Dutch” Ruppersberger, D-MD, for the significant role they played in this victory on behalf of NARFE and the federal/postal community. In addition, she thanked Reps. Edolphus Towns, D-NY; Stephen F. Lynch, D-MA; and Sens. Joseph I. Lieberman, I-CT; Susan M. Collins, R-ME; Daniel K. Akaka, D-HI; and Jim Webb, D-VA, who served as the Defense bill conferees, for helping to persuade their colleagues, particularly Senate Armed Services Committee Chairman Carl Levin, D-MI, and House Armed Services Committee Chairman Ike Skelton, D-MO, to include the civil service provisions.

The new law allows federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity; permits Federal Employees Retirement System (FERS) workers to initially credit half, and in 2014 all, of their unused sick leave toward retirement; provides for retirement equity for federal employees in Hawaii, Alaska and the U.S. Territories; ends the Department of Defense’s pay-for-performance personnel system, the National Security Personnel System or NSPS, restoring employees to the federal General Schedule pay system; and includes other civil service provisions.

“During the past several years, NARFE has played a leading role, along with other federal and postal employee organizations, in overcoming many obstacles to achieve passage of these needed civil service improvements,” Baptiste said. “For example, absent NARFE’s persistence, legislation sponsored by Collins; Sen. Herb Kohl, D-WI; and Sen. George V. Voinovich, R-OH, (S. 629) to allow federal retirees to be re-employed by the government would not have been included in the final Defense bill. Many federal retirees continue to make critical contributions to our safety and well-being during this time of national need, when work force shortages have deprived some agencies of employees with critical and specialized skills,” Baptiste said.

Baptiste was particularly pleased that a compromise was reached on the FERS sick leave legislation by phasing in the allowance. “We recognize that the inequity in the treatment of accrued sick leave between FERS and CSRS has hurt productivity and increased agency costs,” Baptiste said. “For that reason, we have strongly supported the concept that all federal civilian retirement programs credit unused sick leave toward retirement.” The NARFE president specifically lauded Moran for being a long-time champion of this issue.

Top of Page

This NARFE Legislative Hotline, number 689, was released Friday, October 23^rd. NARFE’s victory on annuitant re-employment and FERS Sick Leave, news on the FLTCIP that OPM Will Expand FLTCIP Decision Window and reminds each NARFE member to enlist in the defense of FEHBP via NARFE’s Action Alert. The next Hotline, set for Friday, October 30^th will cover a further Continuing Resolution needed before the end of the month. (592 words; 4:08)

On October 22, the Senate agreed to (and cleared for the White House) the Conference Report on the fiscal year 2010 National Defense Authorization Act (H.R. 2647). During the past several years, NARFE has played a leading role, along with other federal and postal employee organizations, in overcoming several obstacles to pass the needed civil service improvements included in the final Defense bill. The Senate voted 68 to 29. Congressional Quarterly reports President Obama is likely to sign the bill despite objections to its funding for a controversial backup jet fighter engine for the F-35 Joint Strike Fighter.

Once signed by the President, federal agencies will have discretionary authority to re-employ federal retirees on a limited, part-time basis without offset of annuity; Federal Employees Retirement System (FERS) workers will be able to initially credit half, and later all, of their unused sick leave toward retirement; and federal employees in Hawaii, Alaska and the U.S. Territories will be provided retirement equity. (NARFE’s press release provides more details as will December’s NARFE. Use

http://www.narfe.org/departments/home/articles.cfm?ID=1924)

NARFE President Margaret L. Baptiste, in an October 22 press statement, was encouraged by the Office of Personnel Management’s (OPM’s) announcement that it would extend the deadline for Federal Long Term Care Insurance Program (FLTCIP) enrollees to make changes in their coverage to avoid or mitigate a 25-percent premium increase. Most enrollees who added the automatic compound inflation (ACI) option to their FLTCIP plan are subject to the rate hike. OPM has moved the deadline from December 14, 2009, to February 15, 2010. (The full release is available on the NARFE home page or http://www.narfe.org/departments/home/articles.cfm?ID=1922)

The Obama Administration has called for prompt Senate passage of NARFE supported House passed legislation, H.R. 3631, to protect all Medicare Part B beneficiaries from a premium increase in 2010, including federal retirees who are not eligible to receive Social Security benefits. NARFE worked tirelessly behind the scenes on this legislation for the past three months. NARFE members should help “close the deal” by urging their Senators to quickly pass H.R. 3631 to allow the Medicare agency to prepare for 2010.

Congressional action on health care overhaul legislation is happening behind the scenes but key decisions demand NARFE members rally to the defense of the Federal Employees Health Benefits Program (FEHBP). NARFE’s revised action alert calls on each NARFE member to advise his or her congressional delegation, one Representative and two Senators, to allow FEHBP enrollees, like other Americans, to keep the plan they have now. The Legislative Action Center is again updated to allow members to tell Congress to treat federal employees and retirees fairly, allowing them to keep the FEHBP plans they have earned through years of public service. (Use the following URL to read more and send an e-mail to your own congressional delegation: http://capwiz.com/narfe/issues/alert/?alertid=14174906) .

Top of Page

FOR IMMEDIATE RELEASE                                     FOR INFORMATION:
October 22, 2009                                                       Dan Adcock 703-838-7760

NARFE Encouraged by OPM’s Decision to Give Long-Term Care Insurance Enrollees More Time to Consider Coverage Choices; Association Says Better Options Still Needed to Avoid Rate Hike

National Active and Retired Federal Employees Association (NARFE) President Margaret L. Baptiste was encouraged today by the Office of Personnel Management’s (OPM’s) announcement that it would extend the deadline for Federal Long Term Care Insurance Program (FLTCIP) enrollees to make changes in their coverage to avoid or mitigate a 25-percent premium increase.   Most enrollees who added the automatic compound inflation (ACI) option to their FLTCIP plan are subject to the rate hike. OPM has moved the deadline from December 14, 2009, to February 15, 2010.

Among several NARFE recommendations, Baptiste told the Senate Aging Committee and the Senate Subcommittee on the Federal Workforce during her testimony on October 14 that the “special decision period” was not long enough. She also expressed her concerns about the quality of outreach and education OPM and Long Term Care Partners – the third party administrator of the program – were providing to federal workers and annuitants about their benefit options.

“We are pleased that federal employees, retirees and survivors will have more time to carefully weigh what long-term care insurance coverage they will have in light of the 25-percent premium increase,” Baptiste said. “However, the decisions FLTCIP enrollees will be compelled to make continue to go from bad to worse because they’ll have to give up coverage to steer clear of the rate hike.”

She said that so-called “landing spots” developed by OPM and Long Term Care Partners to help enrollees avoid paying the premium increase should allow the insured to trade the ACI option for an increased benefit amount.   “Indeed, when coverage was first offered, some financial planners suggested to certain clients that they buy a benefit amount in excess of current costs as an alternative to the compound inflation protection’s hedge against inflation. In fact, those who took this advice are not facing a rate hike,” she said.

Baptiste praised Chairmen Herb Kohl, D-WI, and Daniel Akaka, D-HI, for holding the October 14 hearing, but commented that further review is necessary to determine the point at which OPM and Long Term Care Partners responded to the program’s shortfall and decided when to increase premiums.

In addition, the NARFE president said that Congress must take steps to restore confidence in the program. “The downturn in the long-term care insurance industry and further consolidation could make matters worse in 2016 when the contract is re-bid.” She said, “Consolidation means there is less competitive pressure on carriers to offer the best possible product. For that reason, now may be the time for Congress to consider whether the FLTCIP should self-insure.”

Top of Page

FOR IMMEDIATE RELEAS                                                          FOR INFORMATION:

October 16, 2009,                                                   Dan Adcock 703 860 7760

NARFE Applauds President for Including Federal Retirees in Proposal to Offer $250 to Older Americans in No COLA Year; Association’s Behind-the Scenes Work Pays Off

Margaret L. Baptiste, president of the National Active and Retired Federal Employees Association (NARFE), today praised President Obama for proposing that all federal retirees and survivors -- including Civil Service Retirement System (CSRS) annuitants who are not eligible to receive Social Security – should be offered a one-time $250 payment, just like other older Americans. NARFE has worked with key congressional committees since July to ensure that such federal government retirees and survivors would receive equivalent compensation.

The proposal was made in advance of the Bureau of Labor Statistics’ October 15 announcement confirming that negative inflation during the past 12 months would result in no cost-of-living adjustment (COLA) for Social Security and federal civilian and military retirees in 2010.

“This payment would come as a welcome relief to federal retirees and survivors at a time when most will shoulder a 12 to 15 percent health insurance premium increase in a year they will receive no cost-of-living adjustment,” said NARFE President Baptiste. “We commend the president for supporting a payment to older Americans that will help them make ends meet and for including government retirees who are not eligible to receive Social Security. With the boost from the president, NARFE will continue to lead the effort in Congress to pass this needed legislation.”

Over a million federal, state and local government employees who are not eligible to receive Social Security are sometimes not part of such relief proposals. For example, until NARFE and other public employee organizations intervened, government retirees not entitled to Social Security were left out of a similar payment in the Stimulus bill approved by Congress in February 2009.

Federal retirees who were hired by the government before December 31, 1983, did not pay Social Security payroll taxes and are not covered by Social Security unless they worked 40 or more quarters in other Social Security-covered employment.[1] Congress chose not to include government workers in Social Security when the program was first created in 1935 because most public employees already had employer sponsored retirement benefits. Indeed, a CSRS annuity was intended to equal a private-sector pension plus Social Security benefits.

In addition to the president, Baptiste applauded Sen. Harry Reid, D-NV; Max Baucus, D-MT; Bernie Sanders, D-VT; and Blanche Lincoln, D-AK; and Reps. Nancy Pelosi, D-CA; Charles Rangel, D-NY; Carolyn McCarthy, D-NY; and Peter DeFazio, D-OR for their support of this needed relief. She urged Congress to approve the proposal as soon as possible.
--------------------------------------------------------------------------------

[1] Members of Congress sworn into office before December 31, 1983, were required by Public Law #98-21 to pay Social Security payroll taxes starting on January 1, 1984.

Top of Page

NARFE Questions Long Term Care Insurance Rate Hike and Calls on Congress to Restore Confidence in Program

FOR IMMEDIATE RELEASE         FOR INFORMATION:
October 14, 2009                    Dan Adcock 703-838-7760

National Active and Retired Federal Employees Association (NARFE) President Margaret L. Baptiste told the Senate Aging Committee and the Senate Subcommittee on the Federal Workforce today that a 25 percent premium increase in the Federal Long Term Care Insurance Program (FLTCIP) could have been mitigated had earlier warning signs been heeded.

“Lower-than-expected lapsed rates, which increase the number of individuals likely to submit claims, and low interest rates, which reduce the expected return on investments, were already an industry problem in 2003, according to the nonpartisan Government Accountability Office,” Baptiste said. “We have to ask: ‘when did these shortfalls become apparent in the FLTCIP’ and ‘when did Long Term Care Partners [the program’s third party administrator] and the Office of Personnel Management (OPM) consider whether rates should be adjusted in response?’”

NARFE’s president described the outrage and anger she has heard from FLTCIP enrollees since the rate hike was announced.

“Many of them have invested tens of thousands of dollars in their policies and are confronted with choices that go from bad to worse,” Baptiste testified.    She said that so-called “landing spots” developed by OPM and Long Term Care Partners to help enrollees avoid paying the premium increase should allow the insured to trade the automatic compound inflation (ACI) option for an increased benefit amount.   “Indeed, when coverage was first offered, some financial planners suggested to certain clients that they buy a benefit amount in excess of current costs as an alternative to the compound inflation protection’s hedge against inflation. In fact, those who took this advice are not facing a rate hike,” she said.

Baptiste testified that Congress must take steps to restore confidence in the program. “It is our understanding that fewer insurance carriers competed for the FLTCIP contract this year. Many of us are concerned that the downturn in the industry and further consolidation could make matters worse in 2016 when the contract is re-bid. Consolidation means there is less competitive pressure on carriers to offer the best possible product. For that reason, now may be the time for Congress to consider whether the FLTCIP should self-insure,” she remarked.

In addition, the Association’s leader commended Senate Aging Committee Chairman Herb Kohl, D-WI, for introducing S. 1177, legislation which would enhance consumer protections, including more stringent regulatory authority to require plans – including the FLTICP – to price their product appropriately.

Baptiste thanked Chairman Kohl and Senate Federal Workforce Subcommittee Chairman Daniel Akaka, D-HI, and Ranking Members Bob Corker, R-TN, and George Voinovich, R-OH, for focusing needed congressional oversight on the premium increase and for their interest in restoring stability to the program.

Top of Page

This NARFE Legislative Hotline, number 687, was released Friday, October 9^th. NARFE’s victory on annuitant re-employment and FERS Sick Leave, a health care update and upcoming NARFE congressional testimony are covered. The next Hotline set for Thursday, October 15^th, will report September consumer price news. (609 words; 4:13)

As reported October 7^th in a NARFE press release (http://www.narfe.org/departments/home/articles.cfm?ID=1916), NARFE and allied organizations representing current and retired federal employees won major victories as part of the fiscal year 2010 Defense Authorization Conference Report (111-166). Passed October 8^th by the House, the legislation will allow federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity; permit Federal Employees Retirement System (FERS) workers to initially credit half, and later all, of their unused sick leave toward retirement; and provide for retirement equity for Federal employees in Hawaii, Alaska and the U.S. Territories. Senate approval is expected shortly.

In the press statement, NARFE President Margaret L. Baptiste said, “During the past several years, NARFE has played a leading role, along with other federal and postal employee organizations, in overcoming several obstacles to pass these needed civil service improvements. For example, absent NARFE’s persistence, bipartisan legislation (S. 629) sponsored by Senators Susan Collins, R-ME, Herb Kohl, D-WI, and George Voinovich, R-OH, to allow federal retirees to be re-employed by the government would not have been included in the final Defense bill. Many Federal retirees continue to make critical contributions to our safety and well-being during this time of national need and when workforce shortages have deprived some agencies of employees with critical and specialized skills. This is a victory for active and retired federal employees.”

The Senate Finance Committee plans to meet on Tuesday, October 13^th, to conduct a committee vote on its pending health care overhaul bill, “America’s Healthy Future Act of 2009.” During the Finance Committee’s televised markup, NARFE has opposed amendments proposed by Sen. Charles Grassley, R-IA, and Sen. Ron Wyden, D-OR. As originally introduced the Grassley amendment would have required federal employees enrolled in the FEHBP to switch to state “exchanges” once operational. Modified to limit the mandatory switch to Members of Congress and their staff, the amendment was adopted by unanimous consent. Despite NARFE’s seemingly successful opposition at the Committee stage, the original Grassley amendment could be offered at any later stage in the legislative process. For that reason use the NARFE Legislative Action Center to inform your two Senators. (Use http://capwiz.com/narfe/issues/alert/?alertid=14103226)

Sen. Wyden’s amendment, withdrawn before consideration, would allow certain low-income non-federal civilians into the FEHBP without a separate risk pool. While NARFE supports access to comprehensive health care for all Americans, we insist that proposals to open the FEHBP to non-federal civilians must have separate risk pools to avoid unanticipated premium increases. NARFE opposed the Wyden amendment and must continue to notify our Senators of that fact.

On Wednesday, October 14 at 2:30pm, President Baptiste will testify at a hearing, titled Sticker Shock: What's the True Cost of Federal Long-Term Care Insurance ? The hearing will be held by the Senate Committee on Aging and the Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia. The hearing will be webcast by the Senate Homeland Security and Governmental Reform Committee (http://hsgac.senate.gov/public/). A link to that webcast will be sent before the hearing.

Top of Page

This NARFE Legislative Hotline, number 686, was released Friday, October 2^nd. 2010 FEHBP Premiums and NARFE members’ response to Senate amendments threatening the FEHBP are covered. The next Hotline is set for Friday, October 9^th. (649 words; 4:13)

On September 29^th, OPM announced 2010 FEHBP Premiums will increase an average of 8.8 percent. Responding to that news, NARFE President Margaret L. Baptiste expressed concern that federal annuitants and workers will be burdened by the large premium increases. “The overall average Federal Employees Health Benefits Program (FEHBP) premium increase of 8.8 percent for 2010 will be difficult for federal annuitants to shoulder in a year when no cost-of-living adjustment (COLA) is expected and when the federal employee pay raise is anticipated to be minimal,” Baptiste said. (More detail in NARFE press release on the web site, at http://www.narfe.org/departments/home/articles.cfm?ID=1900)

NARFE’s President is also troubled that the share paid by employees and retirees in the program’s most popular plan (Blue Cross/Blue Shield Standard option) will jump by 12.4 percent for family plans and 15.1 percent for self-only coverage. “A 12-percent increase in our program’s most popular plan is bad enough,” said Baptiste. “What’s worse is that this comes at a time when some in Congress effectively want to end the FEHBP and enroll federal workers in an exchange system.”

Sen. Charles Grassley, R-Iowa, scaled back a proposal that would have required all federal employees to move from FEHBP to state-based health exchanges so it applied only to members of Congress and their staffers. The Senate Finance Committee passed the narrower version of the amendment on Tuesday (September 29^th) night by unanimous consent. Given the vote occurred without objection from either side of the aisle, moving all or some of FEHBP participants into a newly reformed health care system will be ongoing as the Congress moves to finish the bill this year.

Baptiste praised the 6,716 NARFE members who used NARFE’s Legislative Action Center to tell their Senators of NARFE’s opposition to two amendments considered by the Senate Finance Committee. This immediate opposition to the amendments offered by Senators Grassley (R-IA) and Wyden (D-OR) aroused the most NARFE members ever to use the Legislative Action Center in a one week period. NARFE’s grass root action contributed to the decision to water down the Grassley amendment.

To add your voice in defense of the FEHBP choose the Legislative Action Center from the Legislation Department home page. (The direct link is http://capwiz.com/narfe/issues/alert/?alertid=14103226) While delighted with the record response, sustaining this outpouring would be easier if more NARFE members provided their e-mail address so GEMS could reach them. To do so use your NARFE ID number (provided on the address block of each issue of NARFE magazine) and date of birth to enter your own record. The direct link is https://www.narfe.org/departments/isi/join_gems.cfm

2010 premiums for employees and retirees are available as Adobe ® files on the OPM web site, www.opm.gov That means files in a portable document format (pdf) are available at http://www.opm.gov/insure/health/rates/index.asp Both the November (pages 36-49) and December issues of NARFE magazine will provide the additional coverage begun in the October issue, pages 36-42.

Prior to the upcoming “Open Season,” November 9, 2009 through December 14, 2009, OPM will mail annuitants detailed information about costs and benefits in FEHBP and about the Dental and Vision plans, now in their fourth year. Availability of dental and vision plans, along with their premiums and benefits will vary, are not dependent upon enrollment in the FEHBP, and unlike the health insurance plans, enrollees will pay the full cost of any elected option.

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to over 48,000 GEMS e-mail addresses. Each delivery channel is a service of NARFE, the National Active and Retired Federal Employees Association.

Top of Page

NARFE PRAISES CONFERENCE COMMITTEE FOR INCLUDING RE-EMPLOYED ANNUITANT AND FERS SICK LEAVE BILLS IN FINAL DEFENSE AUTHORIZATION; ASSOCIATION’S PERSISTENCE RESULTS IN VICTORY

October 7, 2009 - Dan Adcock (703) 838-7760

National Active and Retired Federal Employees Association (NARFE) President Margaret L. Baptiste today praised Senators Carl Levin, D-MI, and John McCain, R-AZ, and Reps. Ike Skelton, D-MO, and Howard P. “Buck” McKeon, R-CA, (the chairs and ranking members of their respective chambers' Armed Services Committees) and other members of the Fiscal Year 2010 Defense Authorization conference committee for including several civil service improvements in the final legislation.

The final agreement would allow federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity; permit Federal Employees Retirement System (FERS) workers to initially credit half, and later all, of their unused sick leave toward retirement; and provide for retirement equity for Federal employees in Hawaii, Alaska and the U.S. Territories. The Conference Agreement is expected to pass the House and Senate.

“During the past several years, NARFE has played a leading role, along with other federal and postal employee organizations, in overcoming several obstacles to pass these needed civil service improvements,” President Baptiste said. “For example, absent NARFE’s persistence, legislation (S. 629) sponsored by Senators Susan Collins, R-ME, Herb Kohl, D-WI, and George Voinovich, R-OH, to allow federal retirees to be re-employed by the government would not have been included in the final Defense bill. Many Federal retirees continue to make critical contributions to our safety and well-being during this time of national need and when workforce shortages have deprived some agencies of employees with critical and specialized skills,” Baptiste said. “This is a victory for active and retired federal employees.”

Baptiste was particularly pleased that a compromise was reached on the FERS sick leave legislation by phasing in the allowance. When Congress created FERS in 1986, the benefit of allowing workers to apply their unused sick leave toward retirement was traded off for other FERS benefits not available under the Civil Service Retirement System (CSRS). “However, with the benefit of 23 years of hindsight, we recognize that the inequity in the treatment of accrued sick leave between FERS and CSRS has hurt productivity and increased agency costs. For that reason, we have strongly supported the concept that all federal civilian retirement programs credit unused sick leave toward retirement,” Baptiste said.

The NARFE president specifically lauded Rep. James Moran, D-VA, for introducing his own FERS sick leave equity bill (H.R. 958) and for being a long-time champion of the issue. Baptiste also commended Reps. Edolphus Towns, D-NY, Stephen Lynch, D-MA, and Senators Joseph Lieberman, I-CT, Susan Collins, R-ME, Daniel Akaka, D-HI and James Webb, D-VA, who served as the Defense bill conferees, for helping to persuade their colleagues to include the civil service provisions. In addition, she thanked Reps. Steny Hoyer, D-MD, Chris Van Hollen, D-MD, Frank Wolf, R-VA, Eleanor Holmes Norton, D-DC, Gerry E. Connolly, D-VA, Paul Sarbanes, D-MD, Donna Edwards, D-MD, Elijah Cummings, D-MD, and C.A. “Dutch” Ruppersberger, D-MD, for the significant role they played in this victory on behalf of NARFE and the federal/postal community.

Top of Page

This NARFE Legislative Hotline, number 685, was released Thursday, September 24^th. NARFE scored a major win with House passage of the Medicare Premium Fairness Act. The next Hotline is set for Friday, October 2^nd. (555 words; 3:51)

On September 24, the House passed (406-18 http://clerk.house.gov/evs/2009/roll737.xml) legislation, H.R. 3631, to protect all Medicare beneficiaries from an increase in their Part B premium in 2010 when it is almost certain there will be NO cost of living adjustment (COLA) for Social Security beneficiaries and federal civilian and military retirees. NARFE worked tirelessly behind the scenes on this legislation for the past three months. (NARFE press release at http://www.narfe.org/departments/home/articles.cfm?ID=1897)

In a press statement, NARFE President Margaret L. Baptiste noted, “This bill is about equity for all Medicare beneficiaries, because without it, federal, state and local government retirees who are not Social Security-eligible would have to pay the Part B rate hike in a no-COLA year, while Social Security beneficiaries would not.”

Under current federal law, 72 percent of Medicare beneficiaries do not have to pay for the increase in Part B premiums in any year in which they receive no Social Security COLA. However, there are four groups of older Americans who are not protected by the ‘hold harmless’ provision, including over a million federal, state and local government retirees who are not eligible to receive Social Security benefits. Absent a change in law, they would not only have to pay the higher Part B premiums without a COLA, but also absorb the costs of other Medicare beneficiaries currently ‘held harmless.’

The Senate Committee on Finance has spent most of this week marking-up Chairman Max Baucus’, D-MT, health care reform legislation. Included among the 500 plus amendments are two which would affect the Federal Employees Health Benefits Program (FEHBP). First, Ranking Committee member, Charles Grassley, R-IA, proposed that federal workers and Members of Congress be required to join state-based health exchanges to purchase health insurance instead of FEHBP. The amendment approved by the committee was changed to make enrollment in the exchanges optional – rather than mandatory – for federal employees and legislators.

Second, Senator Ron Wyden, D-OR, may offer an amendment (“Wyden C6”) which would open the FEHBP to certain low-income non-federal civilians. While NARFE supports access to comprehensive health care for all Americans, we insist that any proposal to open the FEHBP to the public must include separate risk pools, which the Wyden amendment does not contain. For that reason, NARFE opposes the amendment. Risk pools are used to calculate health plan premiums based on the cost of providing coverage to enrollees. Without the opportunity to study non-federal enrollees in a separate FEHBP risk pool, the introduction of any new community into the FEHBP could result in unanticipated premium increases.

On Friday, September 25^th, House leaders expect to pass a stopgap spending bill to keep the federal government operating for one month beyond the end of the current fiscal year, September 30. Senate passage, on September 29^th or 30^th, is also expected.

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to over 48,000 GEMS e-mail addresses. Each delivery channel is a service of NARFE, the National Active and Retired Federal Employees Association.

Top of Page

This NARFE Legislative Hotline, number 684, was released Friday, September 18^th. After news on consumer prices and new health care reform legislation, this edition reminds summer recess activists to report their congressional contacts. The next Hotline is set for Friday, September 25^th. (690 words; 4:56)

On September 16^th, the Labor Department’s Bureau of Labor Statistics (www.bls.gov/cpi and 202/691-6994) reported the consumer price index for Urban Wage Earners and Clerical Workers, the CPI-W, for August is 211.156, an increase of 0.3 percent from the July index of 210.526. However, as reported in earlier Hotlines and in the August (pp. 16-19) and September (p. 36) issues of NARFE magazine there is unlikely to be a retiree COLA for 2010. In fact, the July/August average index (210.841) is 2.2 percent LOWER than the third quarter average base index in 2008 (215.5). With only one month remaining, three beneficiary groups, social security, military and federal civilians, should plan to receive NO COLA for 2010 only a year after the highest COLA in more than a quarter century.

The September consumer price indices will be released at 8:30 AM EDT, Thursday, October 15^th. The September index will be averaged with the two prior months then compared to the previous third quarter average. (The BLS web site provides answers to frequently asked questions at http://www.bls.gov/cpi/cpifaq.htm)

Former federal employees now receiving monthly benefits under provisions of the Federal Employees Compensation Act (FECA), due to on the job injuries or illnesses, receive a COLA based on the change in the CPI-W during each calendar year. The August index, (211.156), is 3.1 percent higher that the December 2008 index of 204.813.

On September 16, Senate Finance Committee Chairman Max Baucus (D-MT) released a compromise health care reform bill which would require most Americans to enroll in health insurance, create insurance “exchanges” through which certain individuals and families could receive federal subsidies to substantially reduce the cost of purchasing that coverage and expand eligibility for Medicaid. The cost of the bill would be paid for by reducing the growth of Medicare’s payment rates for most services, levying an excise tax on insurance carriers with plans that charge relatively high premiums ($8,000 for singles and $21,000 for family plans) and through other provisions. The Congressional Budget Office said the bill is fully financed over the first ten years.

The Baucus legislation would not open the Federal Employees Health Benefits Program (FEHBP) to non-federal civilians, nor would FEHBP participants be required to enroll in the insurance exchange system. However, any comprehensive plan that changes insurance law, provider financing, taxation policy and health infrastructure, will have some ramifications on how FEHBP operates in the larger health system. More analysis on the Baucus legislation will be provided later.

We continue to urge NARFE chapter and district officers to provide their federation officers with detailed feedback on formal or informal contacts with their congressional delegations during the summer recess. These reports will enable federation presidents to report to their Region’s Vice President (RVP). RVPs are tasked with making region-wide reports at the November National Executive Board meeting (11/2 through 11/4). Details on contacts made with lawmakers will help the Legislative Department determine the effectiveness of our Grass-Roots Advocacy Month and will guide decisions on how to make improvements in the coordination and management of future campaigns.

A new feature of the NARFE web site, www.narfe.org, accessed from the bottom of the Legislative Department page, allows officers and activists to report their meetings with U.S. Representatives and Senators. Your grass-roots advocacy is a key reason for NARFE’s effectiveness on Capitol Hill. Sharing this information is easy. Simply log-in to the NARFE website, go to the Legislative Department page and click the “Share Your Advocacy Activity” link. You will then find a page where you can enter this important information.

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site,www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to over 48,000 GEMS e-mail addresses. Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.

Top of Page

This NARFE Legislative Hotline, number 683, was released Friday, September 11^th. With Congress back in session, this edition provides a general update. The next Hotline, set for Friday, September 18^th, will report on August consumer prices. (485 words; 3:36)

The longer than usual lead article in the October NARFE magazine, pages 8 through 14, written before the Congressional recess but now reaching members, is very timely. NARFE President Margaret L. Baptiste urges all members to use it to inform themselves at this “Crossroads” in the congressional debate on health care. For more information, visit the link to “NARFE Position on Health Care Reform Legislation” on the Legislative Department section of the NARFE web site, www.narfe.org, (The specific URL is http://www.narfe.org/departments/guest/articles.cfm?ID=1804)

As the economy undergoes the greatest deflationary period in generations, economic forecasters — both government and private — continue to foresee no cost-of-living adjustment (COLA) for Social Security benefits, federal civilian and military retirement for 2010. On September 8, Rep Carolyn McCarthy (D-NY) introduced H.R. 3536, legislation which would provide a one time payment of $150 in social security benefits in 2010 to compensate for the lack of a COLA. While most federal retirees and survivors would benefit from McCarthy’s bill, about 200,000 federal annuitants, covered by CSRS and other systems, who are not eligible to receive Social Security benefits would not. NARFE is working with key Members of Congress to ensure that federal annuitants who are not eligible for Social Security also are compensated to help them keep pace with higher living costs.

We continue to urge NARFE chapter and district officers to provide their federation officers with detailed feedback on formal or informal contacts with their congressional delegations during the summer recess. These reports will enable federation presidents to report to their Region’s Vice President. RVPs are tasked with making region-wide reports at the early November National Executive Board meeting. Details on contacts made with lawmakers will help the Legislative Department determine the effectiveness of our efforts in August and will guide decisions on how to make improvements in the coordination and management of future campaigns.

Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to over 48,000 GEMS e-mail addresses. Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.

Top of Page

JULY INFLATION DECLINES 0.2 PERCENT

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.2 percent in July 2009 according to the Bureau of Labor and Statistics (BLS). Released on August 14^th, the CPI-W for July is 210.526. For purposes of calculating the next COLA (cost-of-living adjustment) the index is currently 2.3 percent below the 2008 third quarter average base index of 215.5. August consumer prices indices will be released on September 16, 2009.

Benefits awarded under the Federal Employees Compensation Act (FECA) to individuals who left the workforce due to work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W and payable in the following year’s month of April. July’s index is 2.8 percent higher than the December 2008 base of 204.813.

CPI-W		Monthly % Change	% Toward Next COLA
Oct.	212.2	-1.3	-1.5
Nov.	207.3	-2.3	-3.8
Dec.	204.8	-1.2	-5.0
Jan.	205.7	0.4	-4.5
Feb.	206.7	0.5	-4.1
March	207.2	0.2	-3.8
April	207.9	0.3	-3.5
May	208.8	0.4	-3.1
June	210.9	1.1	-2.1
July	210.5	-0.2	-2.3

This message is generated by the NARFE Global Email Messaging System (GEMS). Please do not reply to this message. If you wish to reply to this message, please compose a new message to the sender. To stop receiving these messages, simply visit our web site at www.narfe.org and remove your e-mail address from your membership record or email us at memsrvcs@narfe.org.

Top of Page

NARFE’S POSITION ON COMPREHENSIVE HEALTH CARE REFORM AND A SUMMARY OF PROVISIONS RELEVANT TO FEDERAL WORKERS AND ANNUITANTS (pdf reader required, get free adobe)

Top of Page

Region III Summary, Of the National Executive Board (NEB) Meeting, July 20 – 23, 2009 by Bob Harrell

This summary is not the official minutes of the NEB meeting but my compilation of pertinent subjects discussed during the meeting.

The NEB convened at 0900 on July 20, 2009. All members were present and following the opening preliminaries, the business session began. The first order of business was to amend the agenda to include a joint session with the Federation Presidents on Wednesday, July 22, 2009, and a presentation by Dan Adcock, Legislative Director, on the subject of Health Care.

Each of the National Officers and Regional Vice Presidents expanded on their reports that had been submitted to include any updates prior to the meeting.

The midyear budget review was the next order of business. After the review of adjustments made in each Department’s budget, an overview of the audit report and the progress of our investments were presented. At the beginning of 2009, the investment portfolios did not look good; however, in the past 5 months over 11 percent has been recovered and it is expected that the investments will continue the recovery. A motion was made to accept the revised budget as prepared. The motion was unanimously accepted.

The next discussion pertained to the subject of WEB conferencing for the NEB meetings. This subject was a carry-over from a previous discussion. The implementation and cost of Web conferencing had been researched by the Information Technology Department and a presentation was made to the NEB. If this project materializes, it will be a considerable saving in the cost of NEB meetings. (This procedure is presently being used very effectively in the NY Federation.) A motion was made to study the possibility of video conferencing and the purchasing of necessary equipment prior to implementing a trial program for converting selective NEB meetings to Web conferencing. This motion was made by RVP Thissen and seconded by RVP Hatfield. Motion carried.

A discussion was held on the possibility of including the recipient’s membership expiration date on their NARFE Magazine label. Action on this proposal was postponed until the National Resident Officers and Staff could investigate the cost and problems to be encountered with this change.

The NEB meeting was adjourned to prepare for the Icebreaker with the Federation Presidents prior to their meeting on July 21-22, 2009.

The NEB reconvened at 0900 on July 21, 2009, after having welcomed the Federation Presidents to their meeting.

The first order of business on this date was the Membership Plan update was given by John Clements, Membership Director. As each of you are aware, our recruiting has declined some in the past year. The one feature that is very obvious is the percentage of members being recruited by NARFE Headquarters. This percentage has greatly increased over the percentage of members being recruited by our chapters and members. A review of the results being derived by the membership contest being conducted by NARFE was presented. The results will be disclosed at the 2010 Convention. Each Chapter President has been given a copy of the rules for this contest.

The next discussion covered whether or not the finder’s fee could be equal for Active Federal Employees as well as Retirees. This proposal was postponed for further discussion at a future meeting.

The possibility of establishing a Retention Chair Position is to be investigated by the Secretary and Treasurer to add a retention function to the F-7 and updating publications reflecting the retention duties.

A discussion was held concerning the availability of insurance benefits information to be given to attendees at Health Fairs. A study will be performed to determine the possibility of including this information on the Web Site to allow chapters access for reproduction.

The discussion on the Dues Withholding Application was placed on hold until the November 2009 NEB meeting.

The M-112 and M-114 are two separate reports and are run on different programs. The two reports cannot be reconciled based on the programs used by Headquarters.

Since the 90^th Anniversary of NARFE will be in 2011, a presentation will be made at the 2010 National Convention to promote the anniversary of NARFE during February 2011. RFP Hatfield made the motion that the NEB support a celebration of the Association’s 90^th Anniversary beginning at the 2010 National Convention. The motion was seconded by RVP Ross. Motion carried.

Meeting adjourned.

The meeting reconvened at 10:30 on July 22, 2009. The later time was a result of meeting with the Federation President’s and a presentation by given by Dan Adcock, Legislative Director, on the current status of the National Health Bills being proposed. The presentation is available on-line at NARFE.org.

A variety of items was discussed by NEB concerning old business of a general nature including the feedback being circulated via the internet on the proposed referendum.

No action was taken on any of the items discussed and the meeting adjourned early to meet with the Federation Presidents to listen to their concerns and requests for NEB actions.

The NEB reconvened at 08:30 on July 23, 2009.

Items of discussion were the issues provided by the Federation Presidents. Other than some minor operational questions, the following items were discussed:

Blogs and Face Book: The NEB does not support Blogs. With the amount of erroneous information being circulated on the internet, the only reasonable Blog Site would require a gatekeeper to ensure the appropriateness of the comments appearing on the net. Face Book is a personal social networking internet procedure and the NEB is not opposed to members using it as a means to promote greater awareness of NARFE.

GEM Messages: The inability of determining the sender of same. GEM messages sent by Headquarters always indicate that it is sent by Headquarters. Regional Vice Presidents and Federation Presidents are responsible for ensuring that their GEM messages are consistent with the requirements and identification of the sender.

Timeliness: The timeliness of making record changes submitted by a chapter or federation was a great concern from the presidents. One reason for the delays is that the reports are being sent to the wrong office. NARFE will review the procedures for making changes to member records to ensure timely processing. Information will be disseminated to the chapters and federations in the near future covering address for submitting changes/updates.

The NEB adjourned.

NOTE: At the conclusion of the Federation Presidents meeting, I met with the Presidents from Region III. Four of the five Federation Presidents were first time presidents. The consensus of the group was that the time and effort spent in attending the Federation Presidents meeting was very beneficial and would help them in their decision making to support their federation.

Bob Harrell

Region III VP

Top of Page

National Federation Presidents Meeting

by Wallace Roepke, Florida Federation President

I have tried to summarized the two days of meetings that I attended with seminars and open discussions about a multitude of issues that are pertinent to NARFE and our survival as an active, viable and fully functional organization. Forgive me if I gore an ox that is your favorite or if I leave out enough background on a specific issue of interest to you. We covered a lot of ground so I will try to give you the highlights. I will provide my thoughts on any issue or subject at the end in my own summary of the meetings. No bios of the invited speakers were provided so I will give you the names only unless I know specifically who they were.

There were opening remarks by our National President, Margaret Baptiste, about the health of NARFE in general and the importance of a constructive exchange of views and ideas.

She was followed by Chuck Brodigan, the Meeting Chair, who outlined the agenda that would be followed.

Darlene Freeman was the first seminar speaker. She covered a lot of ground so I will speak only to the highlights.

She pointed out something that we all know but often forget, Change is inevitable. Change is constantly with us so we must expect and help NARFE to change with the times.