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

NEWS:

The NARFE Legislative Hotline, number 636, released Thursday, July 17 (2008). Consumer price news is the lead and the override of President Bush’s veto of Medicare legislation is covered. The next Hotline is set for Friday, July 25. (424 words; 2::35)

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.1 percent in June (2008), the second-biggest monthly increase since 1982. Released on July 16 by the Bureau of Labor Statistics (www.bls.gov/cpi or 202/691-6994), the CPI-W for June is 215.223. For purposes of calculating the next COLA (cost-of-living adjustment) the index is currently 5.7 percent above the 2007 third quarter average base index of 203.6. July consumer price indices will be released on Thursday, August 14.

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. June’s index (215.223) is 4.6 percent higher than the December 2007 base of 205.7.

On July 15, the House and Senate voted to override President Bush’ veto (see http://www.whitehouse.gov/news/releases/2008/07/20080715.html) of legislation, H.R. 6331, to reverse the July 1st 10.6 percent payment cut for physicians who treat Medicare beneficiaries. NARFE supported enactment because widespread doctor participation in Medicare is essential for current and future federal retirees. House and Senate override votes gathered even more support than earlier votes in the two chambers. The House voted 383-41 (see http://clerk.house.gov/evs/2008/roll491.xml) and the Senate voted 70-26 (see http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00177). NARFE magazine will again report on this subject (now Public Law 110-275) in the September issue. Both June (page 16) and August (page 16) issues provided coverage.

(Web of the Week: Congressional Quarterly and National Journal are print and electronic publishers covering politics and public policy. They are rivals in a very competitive environment. Both make some of their content available on the Internet for FREE. This week’s web of the week points you to sources of information. Congressional Quarterly (www.cqpolitics.com) continues to test a site offering useful coverage and a place to “Sign up for CQ’s Free E-mail Newsletters.” National Journal (www.nationaljournal.com) offers a daily tease and weekly columns about politics. Each Tuesday Charlie Cook’s “Off to the Races” provides valuable insights into major campaigns.)

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The NARFE Legislative Hotline, number 635, released Friday, July 11 (2008).  Senate passage of legislation on Medicare payments to doctors is, again, the lead item.  The next Hotline, set for Friday, July 18, will report June consumer price news.  (537 words; 3:25)

On July 9, the Senate overcame a procedural obstacle when Sen. Kennedy, D-MA, surprised most of his colleagues, contravened his doctors and cast the deciding vote (http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00169) on a procedural motion (cloture) to allow for a vote on an important, NARFE-supported bill.  The bill, H.R. 6331, then passed the Senate by voice vote.  This legislation, facing a possible Presidential veto, includes a key provision to reverse the July 1^st 10.6 percent payment cut for physicians who treat Medicare beneficiaries.  Widespread doctor participation in Medicare is essential for current and future federal retirees.  The basis of a possible White House veto are continued objections to reducing subsidies to private Medicare plans, called Medicare Advantage (MA).  NARFE’s position on Medicare Advantage plans is covered in the August magazine, page 16: “NARFE supports congressional action to bolster traditional fee-for-service Medicare plans against Medicare Advantage plans’ higher reimbursement rates.”  A June Government Accountability Office report (http://www.gao.gov/docdblite/summary.php?rptno=GAO-08-827R&accno=A82510) and other studies have shown that Medicare Advantage plans are paid more than the average, traditional fee-for-service Medicare plans in their area.

Less than a month after the last Congressional primary in Utah resulted in a third House incumbent ’s defeat, Georgia conducts its congressional primary on July 15^th.  All 13 incumbents are seeking renomination as is Sen. Chambliss.  21 other states and the District of Columbia are yet to hold their Congressional primaries.  Several, in early September, will conflict with the NARFE Convention in Louisville.  The remaining primary states and their primary dates are: Oklahoma, July 29; Kansas, Michigan and Missouri, August 5^th; Tennessee, Thursday August 7^th; Colorado, Connecticut and Nevada, August 12^th; Washington and Wyoming, August 19^th; Alaska and Florida, August 26^th; Arizona, September 2^nd; Louisiana, Saturday, September 6^th; Delaware, District of Columbia, Minnesota, New Hampshire, New York, Rhode Island and Wisconsin, September 9^th; and Hawaii, Saturday, September 20^th.

(WEB of the Week: The first site is especially important to NARFE leaders organizing Meet Your Candidates Forums.  1) The Green Papers, a useful web site, provides a gateway to listings of Congressional candidates.  The home page is www.thegreenpapers.com and the link to a display of the states is www.thegreenpapers.com/G08  By selecting your state you will see a rich display of election information including listings and links for Senate and House candidates.  A second site will help NARFE members eager to participate in primary elections.  This site augments telephone listings for Boards of Election (often listed in the blue pages of telephone directories).  2) The Federal Voting Assistance Program, www.fvap.gov, can help persons wishing to learn about regular, early and absentee balloting.  VPAC provides a gateway to each state’s chief election officer at http://www.fvap.gov/links/statelinks.html)

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 A Tribute to Judy Park

In the early 1980s, when Congress moved to bring federal employees into Social Security, the outlook for the civil service pension system was uncertain. But Judy Park had a plan.

Park was the legislative director for the National Active and Retired Federal Employees Association (NARFE), and, with the help of colleagues and a consulting firm, she spent two years building consensus among unions and employee associations on how to revamp federal retirement.

The effort helped develop the framework for what became the Federal Employees Retirement System, which provides today's retirees with Social Security benefits, a modest annuity and the opportunity to invest in the Thrift Savings Plan, a 401(k)-type program. NARFE's plan also preserved the fiscal stability of the old Civil Service Retirement System, a traditional pension program, for workers who wanted to stay with it.

Park retired from NARFE at the end of May, after nearly 40 years with the association. She joined the group in 1968, only four years out of college, and became NARFE's first legislative director in 1976, when the group decided it needed a legislative and lobbying department.

"It really hasn't been like being in the same job all the time, because the job, the organization and the Congress has changed so much," she said in an interview.

It has been a lot of fun. I have had great experiences and lots of opportunities to help see changes come about. I have met and worked with great people."

When Park joined NARFE, it had about 130,000 members. The membership has tripled since then, and the association, founded in 1921, keeps watch over issues that are important to employees and retirees, such as retirement benefits, cost-of-living adjustments and health care.

When it became clear that Congress was going to revamp federal retirement, NARFE also worked to ensure some degree of equity among employees, so that they would mostly contribute the same percentage of their pay toward retirement, regardless of whether they were in the Civil Service Retirement System or the newer Federal Employees Retirement System, Park said.

While at NARFE, Park pushed for broader eligibility rules for survivor benefits, fought to have the government pay a higher share of health insurance premiums for employees and won a regulatory change so that federal retirees, along with employees, could participate in the "open season" and change their medical coverage as their health needs evolved.

"The most important thing for today's federal workers and federal retirees to do is recognize that they have got to involve themselves in the next several years to protect the benefits they now have," Park said.

In the global economy, an increasing number of companies are cutting or eliminating retirement and health benefits to save money and to become more competitive, she said. These fiscal realities are "sifting down and will hit the public sector. And when it hits the public sector, it will hit the federal government first," she predicted.

If that happens, Park added, "then we're going to see benefits begin to disappear, I'm afraid."

Although she has made a career working on issues and legislation important to federal employees and retirees, Park worked only two years for Uncle Sam, at the old Civil Service Commission, and does not receive the retirement and health-care benefits she fought to create and preserve.

She recently had to purchase supplement coverage for her Medicare benefit, and the search for the insurance "drove me crazy," she said, laughing. "I can't imagine what it is like for those poor souls who are confused by the system, because I felt clueless."

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The NARFE Legislative Hotline, number 631, released Friday, June 6 (2008).  Planning for August’s “Meet Your Candidates Month” is the lead item.  The next Hotline is set for Friday, the 13^th of June.  (496 words; 3:16)

As reported in the May issue of NARFE, page 15, and an earlier Hotline, this year NARFE has declared August as “Meet Your Candidates Month.”  During the August summer recess, set to begin after the last House votes on Friday, August 1^st and continuing until September 8^th, NARFE federation and chapter leaders are planning multi-chapter forums and other meeting formats with incumbents, challengers and candidates, particularly in the still growing number of open seats.  A week-long series of conference calls, connecting Regional Vice Presidents, National Officers and Legislative Department staff with most federation Presidents and National Legislative Chairs has just concluded.  Federation leaders will take the lead in organizing NARFE forums with Senate candidates.  District/Area Officers and Congressional District Liaisons coordination with federation officers will be crucial for successful forums with candidates for the House of Representatives.  Future Hotlines will provide additional information.  (Internet resources will be critical in finding candidate contact information.  In addition to using a search engine such as Google to find a specific candidate, www.thegreenpapers.com, has one stop shopping for Senate and House candidate web sites at www.thegreenpapers.com/G08.)

On June 5^th, the House-Senate conference report on the fiscal year 2009 budget resolution (Senate Concurrent Resolution 70) passed the House (214-210 http://clerk.house.gov/evs/2008/roll382.xml).  The Senate had adopted the final budget measure on June 4^th (by vote of 48-45 http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00142).  The budget resolution is a tax and spending blueprint for the fiscal year that runs October 1, 2008 through September 30, 2009.  The budget resolution guides congressional committees but does not require presidential action nor does it carry the force of law.  This budget resolution contains no reductions in civil service retirement benefits.  However, as reported in May’s NARFE magazine (pages 10-12), during House consideration a budget substitute was debated and defeated (157-263) that could have resulted in reductions to federal civil service retirement and health benefits.

NARFE members, especially those who participated in the nation’s largest one day food drive, the Stamp Out Hunger Food Drive, on May 10^th, will be pleased to learn that a new record amount, 73.1 million pounds of food donations, was collected by city and rural letter carriers.  The food was delivered to local food banks, pantries and shelters to help needy families in all 50 states and U.S. jurisdictions.

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The NARFE Legislative Hotline, number 630, was released Tuesday, May 27 (2008). NARFE’s H.R. 3579 testimony before a House Subcommittee is the lead item. Due to the continuing Memorial Day recess, the next Hotline is set for Friday, June 6. (361 words; 2:56)

On May 20, NARFE testified in support of legislation (H.R. 3579) to allow more efficient re-hiring of federal retirees into temporary federal assignments. Testifying before the House Subcommittee on the Federal Workforce, Postal Service, and the District of Columbia, Committee on Oversight and Government Reform, Daniel Adcock, NARFE’s Assistant Legislative Director, said NARFE has long held that federal retirees who are interested in returning to government service ought to be able to receive the full salary of their new job without any offset as the result of the retirement annuity they earned through prior federal service. Prepared testimony of the four witnesses is available on the Subcommittee’s web site and a NARFE press release appears at the top of our home page, www.narfe.org. (The subcommittee address is: http://federalworkforce.oversight.house.gov/story.asp?ID=1945)

41 of 43 federations conducting a 2008 convention have concluded. Sixteen (16) elected a new president. They are: Indiana, Iowa, Kansas, Maine, Massachusetts, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oregon, Panama, Rhode Island, South Carolina and Tennessee. (The gateway to federation web sites is http://www.narfe.org/departments/nn/articles.cfm?ID=819)

Members of the House and Senate continue to enjoy the Memorial Day recess, May 24 through June 2. This time, also called the Memorial Day District Work Period, is a good opportunity to meet with your legislators and/or their staff. The NARFE legislative department (leg@narfe.org or 703/838-7760) is eager to help you. CongressMerge.com provides a useful Online Congressional Directory, with full information about each District Office including phone number and street address. Unique to this site are maps and driving directions. (The URL is http://www.congressmerge.com/onlinedb/index.htm)

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 more than 44,000 GEMS e-mail addresses. Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.

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The NARFE Legislative Hotline, number 629, was released Friday, May 16.  April consumer price news is the lead item.  The next Hotline is set for Friday, May 23 or Tuesday, May 27.  (357 words; 2:56)

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.7 percent in April 2008 according to the Bureau of Labor Statistics (www.bls.gov/cpi or 202/691-6994). Released on May 14, the CPI-W for April is 210.698. For purposes of calculating the next COLA (cost-of-living adjustment) the index is currently 3.5 percent above the 2007 third quarter average base index of 203.6.  May consumer price indices will be released on Friday, June 13.

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. April’s index is 2.4 percent higher than the December 2007 base of 205.7.

The Members of the House and Senate will be in your neighborhood not ours for the Memorial Day recess, May 24 through June 2.  This time, also called the Memorial Day District Work Period, is a good opportunity to meet with your legislators and/or their staff.  The NARFE legislative department (leg@narfe.org or 703/838-7760) is eager to help you.  www.CongressMerge.com provides a useful Online Congressional Directory, with full information about each District Office including phone number and street address.  Unique to this site are maps and driving directions.  (The URL is http://www.congressmerge.com/onlinedb/index.htm)

June’s NARFE magazine has been printed.  The Legislative Report beginning on page 10 has “OPM Calls for FEHBP Plan For Retirees Only” and “Medicare Physician Pay in Question” page 16.  An annual feature, annuitant counts by state, appears on page 19.  The Cover Story, “Results of NARFE’s Membership Survey” runs on pages 22-25.

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The NARFE Legislative Hotline, number 628, was released Friday, May 9.  NARFE testimony at a Subcommittee hearing on reemployment of annuitants is the lead item.  The next Hotline set for Friday, May 16, will report April consumer price news.  (359 words; 2:19)

On May 20, NARFE will testify in support of legislation, H.R. 3579, to facilitate the temporary reemployment of federal annuitants.  Annuitant reemployment occurs now typically with the individual’s new pay being offset by the dollar amount of the previously-earned annuity, and in rare cases a restrictive OPM-led waiver process can allow a specific agency to pay these annuitants without the dollar for dollar loss.  This legislation would allow annuitants to earn full pay and their annuities. The hearing will be held by the Federal Workforce Subcommittee (http://federalworkforce.oversight.house.gov/), chaired by Rep. Danny Davis, D-IL.  Proponents, NARFE and the Office of Personnel Management (www.opm.gov) and opponents, National Treasury Employee Union (www.nteu.org), will testify and answer questions from Members of the subcommittee.  H.R. 3579 is sponsored by Rep. Tom Davis, R-VA.  A Senate companion bill, S. 2003, is sponsored by Sen. Susan Collins, R-ME.  (The Library of Congress “Thomas” service has additional information at: http://thomas.loc.gov/cgi-bin/bdquery/z?d110:HR03579:@@@L&summ2=m&)

Of the first twenty-two (22) federations to complete their conventions, a dozen elected a new president.  They are: Indiana, Kansas, Maine, Massachusetts, Nebraska, New Mexico, North Carolina, Ohio, Panama, Rhode Island, South Carolina and Tennessee.  (The gateway to federation web sites is http://www.narfe.org/departments/nn/articles.cfm?ID=819)

Saturday, May 10, is the Stamp Out Hunger Food Drive, sponsored by the National Association of Letter Carriers (www.nalc.org) and supported by NARFE.  The Stamp Out Hunger Food Drive is the nation’s largest single-day food drive.  NARFE President, Margaret Baptiste, urges you to collect and bag non-perishable food items and place the bag by your mailbox for your letter carrier on Saturday, May 10.

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Retirees, Disabled Vets Still Can File for 2008 Stimulus Payments

WASHINGTON — Even though April 15 has passed, the Internal Revenue Service today reminded retirees, disabled veterans and others who normally do not file a tax return that there is still time to submit a 2007 form to receive an economic stimulus payment.

People who have no tax filing requirement but have at least $3,000 in qualifying income should file a simple Form 1040A. Qualifying income includes any combination of earned income, nontaxable combat pay as well as certain payments from Social Security, Veterans Affairs and Railroad Retirement.

“Don’t worry if you did not file a return by April 15. If you meet the criteria, you are still eligible for a stimulus payment. The quicker you file, the quicker you’ll get your payment,” said Doug Shulman, IRS Commissioner. People must file a return by October 15 to receive an economic stimulus payment this year.

Shulman urged friends and family members to reach out to acquaintances or relatives who may either be unaware of the Economic Stimulus Payment or unable to file the tax return themselves. “We need everyone’s help to make sure all eligible people get the economic stimulus payments,” he added.

For taxpayers who are required to file an income tax return, the IRS will use the 2007 tax return to determine eligibility for economic stimulus payments of up to $600 ($1,200 for married couples). There also is a payment of $300 for each qualifying child younger than 17.

Those not required to file a return because their income is too low or nontaxable must file a tax return to obtain their economic stimulus payment. The Economic Stimulus Act of 2008 provides a minimum payment of $300 ($600 for married couples) plus the $300 payment per eligible child, if the person (or married couple) has at least $3,000 in qualifying income.

The types of Social Security benefits that are considered qualifying income include retirement, disability and survivor payments. Supplemental Security Income (SSI) is not qualifying income. The types of Veterans Affairs benefits that are considered qualifying income include disability compensation, disability pension and survivor payments. Qualifying Railroad Retirement payments include the social security equivalent portion of Tier 1 benefits.

People not otherwise required to file an income tax return must file a simple Form 1040A with basic information to ensure that they receive the economic stimulus payment. This information includes their name; address; dependents, if any; amount of their qualifying income (which must be $3,000 or more); direct deposit information and their signatures. Forms 1040A and instructions are available at www.irs.gov.

Eligible people, including their qualifying children, must have Social Security numbers. Also, people cannot be claimed or be eligible to be claimed as a dependent on another’s tax return. People with Individual Taxpayer Identification Numbers are not eligible.

There are IRS Taxpayer Assistance Centers open during the week to provide assistance. To find an IRS office near you, go to IRS.gov and click on “Contact IRS,” then “Contact Your Local IRS Office.” These sites offer free tax preparation and filing for individuals and families whose income is $40,000 or less. A select number of volunteer tax assistance sites in local communities may also remain open. People can call 1-800-906-9887 to find the volunteer tax assistance site closest to them.

If people want to file their own return electronically, they can still use Free File – Economic Stimulus Payment, also available at www.irs.gov. This program provides free software and free electronic filing of Form 1040A, and it remains open after April 15.
 

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The NARFE Legislative Hotline, number 626, was released Friday, April 25.  Federation conventions lead this Hotline.  The next Hotline is set for Friday, May 2.  (355 words; 2:47)

Five of the first eight federations to conclude their conventions have elected a new president.  These five federations are: Indiana, New Mexico, Panama, Rhode Island and South Carolina.  New leaders are certain to be elected at conventions held during April, May and June.

Sen. Arlen Specter, R-PA, is the newest cosponsor of NARFE priority legislation, Premium Conversion.  Sen. Warner, R-VA, sponsor of S. 773, to allow civilian and military retirees to pay certain health care premiums on a pre-tax basis, made Specter the 61^st cosponsor on April 23.  During the 109^th Congress, 2005-2006, identical legislation reached 64 cosponsors.  Companion House legislation, H.R. 1110, sponsored by Rep. Tom Davis, R-VA, has 323 official cosponsors and two waiting to be added.  This impressive number is still twenty shy of Premium Conversions 108^th Congress total.

The Stamp Out Hunger Food Drive, sponsored by the National Association of Letter Carriers and supported by NARFE, is the nation’s largest single-day food drive.  Second Harvest (www.secondharvest.org) reports food banks in most areas of the country have low food stocks and high demand.  On SATURDAY, May 10, the National Association of Letter Carriers (www.nalc.org) and allied postal crafts will conduct their 16^th annual Stamp Out Hunger Food Drive.  In 2007, this NARFE supported drive delivered 70.7 million pounds of non-perishable items donated by patrons to local food organizations.  NARFE members are urged to collect and bag non-perishable food items and place the bag by your mailbox for your letter carrier on Saturday, May 10, 2008.  Chapters are encouraged to share this information at chapter meetings.  Results of the Food Drive will be reported in our magazine.

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NARFE TROUBLED BY OPM CALL FOR SEPARATE FEHBP RETIREE COVERAGE AND OPPOSES PLANS TO EXPAND CONTROVERSIAL HSAs
         (March 20, 2007 Dan Adcock or Jill Crissman 703-838-7760)

National Active and Retired Federal Employees Association (NARFE) President Margaret L. Baptiste said today that her association has concerns about proposals in the Office of Personnel Management’s “2008 Federal Employees Health Benefits Program (FEHBP) Carrier Letter” (also known as the “Call Letter”) which would create separate health plans for Medicare-eligible federal annuitants and expand controversial Health Savings Accounts (HSAs). However, Baptiste applauded OPM’s decision to encourage FEHBP carriers to offer enhanced hearing benefits for adults, including professional services and hearing aids.

“While OPM says that enrollees in the Medicare pilot “sub-option” would pay the same premiums set for their counterpart FEHBP plans, we are troubled that a plan specifically created for Medicare-eligible federal annuitants could open the door for separately rated retiree plans in the future with substantially higher premiums than other FEHBP plans,” the NARFE President said. “In the 48 year history of the program, there has never been a separate FEHBP plan based on retirement status or age.”

Baptiste also said that NARFE is concerned that the cost of the Medicare pilot sub-option’s “pass-through accounts” could result in benefit cuts or higher deductibles, copayments and coinsurance for federal retirees and survivors.

In addition, the Association is disturbed that payments from the pass-through accounts would be used to encourage federal annuitants to join private Medicare options, like “Medicare Advantage” and the Medicare “Part D” prescription drug program.

According to Baptiste, the President’s fiscal year (FY) 2009 budget would weaken traditional Medicare by reducing payments to doctors and hospitals and, as a result, make private Medicare Advantage (MA) plans more attractive to beneficiaries. Most federal annuitants enroll in traditional Medicare because the program’s coverage coordinates better with FEHBP benefits than Medicare Advantage. Recent studies have shown that Medicare Advantage plans are paid more than the average traditional-fee-for-service Medicare plan in their area. NARFE, and its 53 member Leadership Council of Aging Organizations (LCAO) sister organizations, have urged lawmakers to cut overpayments to Medicare Advantage plans ensuring equitable funding and treatment of all beneficiaries by the Medicare program.

The Medicare Part D program was created to offer a prescription drug benefit for the 16 million older Americans who had no such coverage. Federal annuitants do not need to pay the Part D premium because they currently receive drug coverage through their FEHBP plan. NARFE has long been concerned that Medicare Part D would encourage employers, including

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the federal government, to reduce or eliminate prescription drug coverage to Medicare-eligible retirees under FEHBP. Part D drug coverage is substantially inferior to what FEHBP now provides.

To add insult to injury, OPM persistently has refused to apply for a payment -- available to other public and private employers who provide drug coverage as generous as Medicare Part D – which could be used to lower FEHBP premiums.

OPM continues to encourage FEHBP insurance carriers to expand the availability of High Deductible Health Plan/Health Savings Accounts (HDHP/HSA) despite the fact that the controversial option has only attracted a minute fraction of federal workers and retirees. Indeed, a report released March 18 by the nonpartisan Employee Benefit Research Institute (EBRI) and the Commonwealth Fund found “little evidence that the tax benefits of such plans [HDHS/HSAs] have the potential to help change the trajectory of health care cost growth, are leading health plans or providers to provide more information about the quality and price of services to patients…”.

NARFE opposes HSAs because they could increase premiums for comprehensive plans since relatively healthy enrollees with higher incomes could be siphoned off into HSAs. Such concerns were confirmed by a January 2006 report of the nonpartisan Government Accountability Office (GAO), which found that HSAs tended to attract younger and wealthier FEHBP enrollees.

NARFE opposes OPM’s decision in their 2008 call letter to solicit proposals for insurance carriers to offer the long dormant “Indemnity Benefit Plan” as a backdoor attempt to jump start anemic participation in HDHP/HSAs. The President’s FY 2009 budget said that the “Indemnity Benefit Plan” should provide HSAs as a system-wide option. Despite being named in the law which authorizes FEHBP, the Indemnity plan has not been available since the Aetna insurance company stopped offering the coverage in 1990. The entry of a large insurance carrier with an HDHP/HSA option available to most enrollees also could boost participation in HSAs.
 
# # #
 
NARFE, one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/ retiree organization, NARFE represents the retirement interests of nearly 5 million current and future federal annuitants, spouses, and survivors.

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The NARFE Legislative Hotline, number 622, was released Friday, March 14. February consumer price news leads this Hotline. Due to the two week Easter recess, the next scheduled Hotline is set for Friday, April 4. (517 words; 3:49)

On March 14, the Labor Department’s Bureau of Labor Statistics (www.bls.gov/cpi or 202/691-6994) reported that the Consumer Price Index for Urban Wage Earners and Clerical Workers, the CPI-W, for February 2008 is 207.254, up 0.2 percent from the January index of 206.7. The CPI-W for February is 1.8 percent higher than the 2007 third quarter average base index of 203.6. For purposes of calculating the next COLA (cost-of-living adjustment) the index has risen 1.8 percent. March consumer price news will be released Wednesday, April 16.

Former federal employees now receiving monthly benefits under provisions of the Federal Employees Compensation Act (FECA) receive a COLA based on the change in the CPI-W during each calendar year. The February 2007 index of 207.254, is 0.8 percent higher than the December 2007 index of 205.7. The CPI-W increase during calendar year 2007 was 4.3 percent, meaning that FECA beneficiaries will see a 4.3 percent COLA in their April benefit payments. (Consumer prices for the first five months of the measurement year are posted at http://www.narfe.org/departments/leg/guest/articles.cfm?ID=942)

The House and Senate passage of their respective budget resolutions (H. Con. Res. 312 and S. Con. Res. 70), allows staff to start the process for a House-Senate conference committee. Neither the House nor Senate budget resolution proposes reductions in federal retirement or health benefits. The Congressional budget resolution does not require a presidential signature nor does it carry the force of law. However, Congress uses it as a blueprint to direct its decisions about spending and taxation.

Two bill introductions are of interest to NARFE members. Rep. Jim Moran, D-VA, introduced H.R. 5573, legislation to provide Federal Employees Retirement System accumulated sick leave to be partially “cashed out” at retirement. Rep. Danny Davis, D-IL, introduced H.R. 5550, legislation to increase the maximum age to qualify for coverage as a "child" under the health benefits program for Federal employees. Introduced at this point in the second year of a two-year Congress, neither bill is likely to win enactment. Both bills could be reintroduced in the next Congress.

The Members of the House and Senate will be in your neighborhood not ours for both the week before and after Easter. This Easter recess is a good opportunity to meet with your legislators and/or their staff. The NARFE legislative department (leg@narfe.org or 703/838-7760) is eager to help you. CongressMerge.com provides a useful Online Congressional Directory, with full information about each District Office including phone number and street address. Unique to this site are maps and driving directions. (The URL is http://www.congressmerge.com/onlinedb/index.htm)

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 more than 47,000 GEMS e-mail addresses. Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.

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Click for Past National President Harry T. (Steve) Morrissey’s Obituary In the Sarasota Herald Tribune.

The NARFE Legislative Hotline, number 621, was released Friday, March 7.  House and Senate Budget Resolutions lead this Hotline.  The next Hotline, set for Friday, March 14, will report on February consumer prices. (659 words; 4:43)

The House and Senate Budget Committee Chairmen, Rep. John Spratt, D-SC, and Sen. Kent Conrad, D-ND, started their Committees’ budget process with a ”Chairman’s Mark.”  Like President Bush’s February 4 budget proposal, there are no proposed reductions to the earned income or health benefits of federal retirees.  Unlike the President’s proposal for pay disparity, a 3.4 percent raise for military personnel versus 2.9 percent for federal civilian workers, House Budget Committee Chairman Spratt included a section (610) entitled “Sense of the House Regarding Pay Parity.”  This section contains no specific pay raise percentage, but does endorse pay parity, thus distinguishing Spratt’s proposal from the President’s.  The Senate resolution is silent on pay.  Both the House and Senate Budget Committees approved their differing plans on March 6.  Floor consideration on the Concurrent Resolutions, still unnumbered, will occur during the week of March 10.

Based on inquiries to the Legislative Department, there continues to be some confusion about who is eligible for the rebate checks authorized by economic stimulus package signed into law by President Bush on February 13. Federal workers and retirees will be entitled to payments on the same basis as their fellow citizens.

The new law allows Americans to receive a tax rebate through two options.

The first way to get a check is to have paid federal income tax on any form of income during the 2007 tax year, regardless of whether the source was wages or retirement income.  Such taxpayers, including most federal annuitants, will receive a payment up to $600 per person or up to $1,200 per couple allowed for those without dependent children. (Taxpayers with children will receive an additional $300 per child).   The amount of the rebates is phased out at a rate of 5 percent of adjusted gross income (AGI) beginning at $75,000 for single filers and $150,000 for joint filers.  As a result, the rebate is effectively eliminated for taxpayers without dependent children at $87,000 and $174,000 AGI for single and joint filers, respectively.  

Under the second option, Americans who pay no income taxes, but have at least $3,000 of income from self employment wages, Social Security benefits or Veterans disability payments will receive rebates of $300 for individuals or $600 for couples filing joint returns. These persons who would not normally need to file a 2007 federal income tax return must file, complete, sign and mail a 1040 or 1040A by December 31 — and write “Stimulus Payment” on the top of the tax form — to receive a check under this option.  The Internal Revenue Service (IRS) is urging persons eligible under the second option to file their tax forms as soon as possible to ensure that they receive their check sooner.

The IRS will begin distributing rebate checks in May.  No one will have to pay income taxes on stimulus payments.  For more information on the economic stimulus tax rebate, visit the IRS web site at www.irs.gov

The House and Senate are scheduled to be out of Washington for both the week before and after Easter.  This Easter recess is a good opportunity to meet with your legislators and/or their staff.  The NARFE legislative department (leg@narfe.org or 703/838-7760) is eager to help you.  CongressMerge.com provides a useful Online Congressional Directory, with full information about each District Office including phone number and street address.  Unique to this site are maps and driving directions.  (The URL is http://www.congressmerge.com/onlinedb/index.htm)

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 more than 47,000 GEMS e-mail addresses.  Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.

The NARFE Legislative Hotline, number 620, was released Friday, February 29^th.  March is NARFE-PAC month and the lead item of this Hotline.  The next Hotline is set for Friday, March 7^th. (407 words; 2:58)

NARFE-PAC, NARFE’s Political Action Committee, is the federal retiree defense fund.  In this important election year, NARFE-PAC remains one of our most potent tools to help elect men and women committed to defending the earned retirement benefits of active and retired federal employees.  Chapter meetings, especially during March, should devote special attention to reminding NARFE members of the importance of contributing to NARFE-PAC.  The 2007-2008 NARFE-PAC lapel pins should be available and awarded to those donating $20 or more. President Margaret L. Baptiste is sending a letter to NARFE members urging a generous NARFE-PAC contribution.  April and May federation conventions should “Teach and Reach”--  Teach NARFE officers and activists about our Political Action Committee, and Reach Out to all members to make a NARFE-PAC contribution.

March 4 is the next big presidential primary date.  Delegate selection occurs in four states, Ohio, Rhode Island, Texas and Vermont.  Congressional primaries will be conducted in Ohio and Texas.  Former presidential candidates, Rep. Dennis Kucinich, D-OH, and Rep. Ron Paul, R-TX, are challenged in their bids for re-nomination.  Elections give us a special opportunity to ask incumbents and their challengers to support NARFE’s legislative program (http://www.narfe.org/departments/leg/guest/articles.cfm?ID=1046)  including the protection of the earned economic and health security of federal workers and annuitants as well as priority legislation like Premium Conversion, S. 773 and H.R. 1110, and Repeal of the Social Security Government Pension Offset (GPO) and Windfall Elimination Provision (WEP), S. 206 and H.R. 82.  (www.capwiz.com/narfe/issues/bills).

The House and Senate are scheduled to be out of Washington for the last two weeks of March for the Easter District Work Period.  Use this time as an opportunity to meet with your legislators and/or their staff.  The NARFE legislative department (leg@narfe.org or 703/838-7760) is eager to help you harness this District Work Period.  (A  useful Online Congressional Directory which features maps of Congressional District and State offices is found at http://www.congressmerge.com/onlinedb/index.htm  )

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 more than 47,000 GEMS e-mail addresses.  Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.