GEM Hotline

This NARFE Legislative Hotline, number 684, was released Friday, September 18th. 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 25th. (690 words; 4:56)

On September 16th, the Labor Department’s Bureau of Labor Statistics (http://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 15th. 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.

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This NARFE Legislative Hotline, number 683, was released Friday, September 11th. With Congress back in session, this edition provides a general update. The next Hotline, set for Friday, September 18th, 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.

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This NARFE Legislative Hotline, number 680, was released Friday, July 31st. This edition provides a Congressional status report as Representatives, but not Senators, leave town for a 5 week summer recess. August, for NARFE, is Grass-roots Advocacy Month. The next scheduled Hotline is set for Friday, August 7th.

On July 31st, Members of the U.S. House of Representatives leftWashington for their hometowns to mix family vacations, representative functions (Town Hall Meetings and parades) and re-election politics. The ever ambitious agenda of President Obama to have House and Senate votes on a major health care overhaul has been postponed until after Labor Day at the earliest. Committees in both chambers struggle to negotiate such key provisions as health care cost containment and how to pay for health care reform.

NARFE has taken NO position on the health care reform legislation currently receiving serious consideration in the House and the Senate. That’s because the status of the leading bills is extremely fluid and is subject to change. Neither the House nor the Senate bills would open the Federal Employees Health Benefits Program (FEHBP) to non-federal civilians nor would FEHBP be offered as the proposed public health care plan. More in depth analysis on the legislation will appear in the SeptemberNARFE magazine and will be sent to NARFE members by e-mail via GEMS.

Many NARFE members have contacted the Legislative Department regarding e-mail they have received which make various claims about the health care reform bills. We advise members to carefully scrutinize such messages because some of them in current circulation provide misleading or false information. For NARFE members who are interested in receiving accurate, nonpartisan analysis about the major health care reform bills, including the Senate Finance Committee, Senate Health, Education, Labor and Education (HELP) Committee and the House Tri-Committee proposals, visit the Kaiser Family Foundation side-by-side bill comparison web site at: http://www.kff.org/healthreform/sidebyside.cfm . The Kaiser Foundation is not associated with Kaiser Permanente or Kaiser Industries.

Another unresolved matter -- civil service issues in the separate House and Senate Defense Authorization bills (H.R. 2647 and S. 1390). NARFE President Margaret L. Baptiste, wrote named Senate and likely House conferees to argue on behalf of the Senate passed provision to allow federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity from salary AND the House passed provisions to allow FERS employees to credit their unused sick leave towards retirement and to provide for locality pay equity for Federal employees in Hawaii, Alaska and the U.S. Territories (S. 507).

The delayed floor consideration of massive health care reform means NARFE’s carefully planned use of August as Grass-Roots Advocacy Month will compete with deep-pocketed, strident campaigns for and against aspects of the pending legislation.

Since early June, Region Vice Presidents and their federation presidents and national legislative officers have been organizing and coordinating with District and Chapter Officers to prepare for NARFE Grass-Roots Advocacy Month. Grass-Roots Advocacy Month (see June magazine pages 16 and 18) is designed to use the summer recess, August through Labor Day, September 7, to conduct face-to-face visits with every Representative and every Senator. Complete information packets about the August Grass-Roots Advocacy Month were sent to federation and chapter presidents and legislative officers and are available on the NARFE website:http://www.narfe.org/departments/legislation/articles.cfm?ID=1803

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.

This NARFE Legislative Hotline, number 678, was released Friday, July 17th. This edition leads with consumer price news, provides an update on health care legislation and a reminder of needed action and planning. The next scheduled Hotline is set for Friday, July 24th. (440 words; 3:11)

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased in June for the sixth consecutive month. The CPI-W declined in each of the last five months of 2008, precipitously in the final three months of 2008. The June increase is 1.1 percent. Released by the Bureau of Labor Statistics (http://www.bls.gov/cpi or 202/691-6994) on July 15, the CPI-W for June is 210.972. For purposes of calculating the next cost-of-living adjustment (COLA), the index is now 2.1 percent LOWER than the 2008 third quarter average base index of 215.5.

Benefits awarded under the Federal Employees Compensation Act (FECA) to individuals suffering work-related injuries or illnesses, are adjusted according to each calendar year's percentage change in the CPI-W. June's index, 210.972, is 3.0 percent higher than the December 2008 index, 204.813. July consumer price indices will be released on Friday, August 14th. (A chart of monthly and cumulative changes is posted at http://www.narfe.org/departments/home/articles.cfm?ID=942)

Two of the three House committees conducting marathon markups on massive health care legislation, H.R. 3200, completed their work this week. This overhaul of health care continues to provide NARFE with a vehicle in which to include our Premium Conversion legislation (H.R. 1203/S. 491). NARFE President Margaret L. Baptiste renews her request to each NARFE member to contact his or her Congressional delegation, one Representative and two Senators. Use NARFE's Legislative Action Center to easily send a message to your own Representative and both Senators. (The URL to use is http://capwiz.com/narfe/home/).

Since the first week of June, Region Vice Presidents and their federation presidents and national legislative officers have been organizing and coordinating with District and Chapter Officers to prepare for NARFE Grass-Roots Advocacy Month. Grass-Roots Advocacy Month (see June magazine pages 16 and 18) is designed to use the summer recess, August through Labor Day, September 7, to conduct visits with every Representative and Senator. Complete information packets about the August Grass-Roots Advocacy Month were sent to federation and chapter presidents and legislative officers and are available on the NARFE website: http://www.narfe.org/departments/legislation/articles.cfm?ID=1803

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

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.
Hotline 678.rtf Hotline 678.rtf
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This NARFE Legislative Hotline, number 677, was released Friday, July 10th. This edition provides an update on health care legislation and a reminder of needed action and planning. The next scheduled Hotline, set for Friday, July 17th, will provide June consumer price news. (564 words; 3:56)

During the week ending July 10, key committees in the House and Senate continued to wrestle with several vexing issues in the health care reform bills they are drafting. Most notably, the Senate Finance Committee and House Ways and Means Committee are considering how to pay for the legislation. They have ruled out a payroll tax increase, but are considering a surtax of between 3.5 percent and 4.5 percent on families making over $250,000.

On July 9, Speaker Nancy Pelosi said the House’s health reform bill will not tax health insurance benefits provided by employers to their workers to help pay for the legislation. However, the Senate continues to mull over proposals that would limit the tax free status of employer-sponsored health insurance above certain premium levels. For example, under one option, health plans with annual premiums below $18,840 for families and $7,420 for individuals would be excluded from income taxes, but employees and retirees would be taxed on the portion of a premium above that level. NARFE opposes taxation of employer-sponsored health insurance and is working with other public and private worker and retiree organizations in opposition to such plans.

The overhaul of health care continues to provide NARFE with a vehicle in which to include our Premium Conversion legislation (H.R. 1203/S. 491). Regardless of whether you have taken any previous action, President Margaret Baptiste asks each NARFE member to immediately contact his or her Congressional delegation, one Representative and two Senators. Use NARFE's Legislative Action Center to easily send a message to your own Representative and both Senators. (The URL to use is http://capwiz.com/narfe/home/). The Legislation Department will soon begin providing information on which NARFE Federations are employing the Legislative Action Center to generate the highest per capita number of messages to their Members of Congress as part of the current action alert.

NARFE members need not wait until August to visit their lawmakers, particularly if their Members of Congress serve on either the Senate Finance Committee
(http://capwiz.com/narfe/directory/committees.tt?commid=sfina)

or House Ways and Means Committee (http://capwiz.com/narfe/directory/committees.tt?commid=hways). These tax writing committees are deciding the outcome of health care legislation and their members are in a unique position to help us add premium conversion to the overhaul of health care.

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 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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This NARFE Legislative Hotline, number 675, was released Friday, June 19th. This edition leads with consumer price news. NARFE's Action Alert for all members continues. The next scheduled Hotline is set for Friday, June 26th. (859 words; 6:20)

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased in May for the fifth consecutive month. The CPI-W declined in each of the last five months of 2008. The May increase is 0.4 percent. Released by the Bureau of Labor Statistics (www.bls.gov/cpi or 202/691-6994) on June 17, the CPI-W for May is 208.774. For purposes of calculating the next cost-of-living adjustment (COLA), the index is now 3.1 percent LOWER than the 2008 third quarter average base index of 215.5.

Benefits awarded under the Federal Employees Compensation Act (FECA) to individuals suffering work-related injuries or illnesses, are adjusted according to each calendar year's percentage change in the CPI-W. May's index, 208.774, is 1.9 percent higher than the December index, 204.813. June consumer price indices will be released on Wednesday, July 15th. (A chart of monthly and cumulative changes is posted at http://www.narfe.org/departments/home/articles.cfm?ID=942)

Since our June 5 Hotline, NARFE has been flooded with calls from federal workers concerned about a "Deficit Reduction Proposal" submitted to President Obama by House Republican leaders. Best known among the federal workforce proposals, and most worrisome, are two proposals. The first, to base future retirement calculations on the "High 5" instead of the current 'High 3" years of salary, and the second, to not afford federal civilian employees their earned annuity until they reach age 62, under any circumstance. We are advising these concerned callers not to alter their plans at this time. However, sooner, rather than later, plans to cut federal retirement will be taken more seriously. But federal workers who are not yet NARFE members may not learn about proposals and more immediate threats to their earned annuity and health benefits until it is too late. That's why NARFE officers and activists should take this opportunity to explain that they won't be caught off guard if they join NARFE and receive regular updates about their earned benefits.

As a concrete example of such a threat to federal employees and retirees we offer the April 2 House floor vote on the Ryan budget resolution substitute. Named for its author, Rep. Paul Ryan (R-WI), the Ryan substitute would have required savings, over 10 years, of $10.2 billion via a reconciliation instruction to the House Committee on Oversight and Government Reform whose only option to satisfy this instruction is to reduce federal civil service retirement accounts. The Ryan substitute failed on a vote of 137-293 with 38 Republicans among the large majority voting against the substitute. Coverage of this clear and present danger is the lead article in the June issue of NARFE magazine (found at http://www.narfe.org/departments/home/articles.cfm?ID=1810) and the itemized vote is available from our Legislative Action Center (http://capwiz.com/narfe/vote.xc/?votenum=191&chamber=H&congress=1111&voteid=13072321&state=US

Senate and House legislative drafts to entirely overhaul health care provide the ideal vehicles in which to attach our premium conversion bills. Because time to mobilize NARFE members before President Obama's ambitious timetable of August is relatively short, NARFE President, Margaret L. Baptiste, issued an all members Action Alert requesting each NARFE member to immediately contact his or her Congressional delegation, one Representative and two Senators. NARFE's Legislative Action Center is set up to make this delegation outreach as easy as possible. (Use www.capwiz.com/narfe)

Your message to your one Representative:

“I ask that you urge House Ways and Means Chairman, Charles Rangel, to include H.R. 1203, Federal and Military Retiree Health Care Equity Act, in comprehensive health care reform legislation the committee is currently considering.”

Your message to your two Senators:

“I ask that you urge Senate Finance Committee Chairman, Max Baucus, to include S. 491, Federal and Military Retiree Health Care Equity Act, in comprehensive health care reform legislation the committee is currently considering.”

Conference calls completed during the first week of June with Region Vice Presidents and their federation presidents have added details to organizing and coordinating NARFE Grass-Roots Advocacy Month. Grass-Roots Advocacy Month (see June magazine pages 16 and 18) is designed to use the summer recess, August through Labor Day, September 7, to conduct visits with every Member of Congress. Complete information packets about the August Grass-Roots Advocacy Month were sent to federation and chapter presidents and legislative officers and is available on the NARFE website: http://www.narfe.org/departments/legislation/articles.cfm?ID=1803

NARFE members need not wait to until August to visit their lawmakers. In fact, NARFE officers and staff used the Regional Conference Calls to immediately launch a coordinated campaign focused on Representatives who serve on the House Ways and Means Committee and Senators who serve on the Senate Finance Committee. These committees are key to adding our premium conversion bills (H.R. 1203/S. 491) to health care reform legislation.

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 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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This NARFE Legislative Hotline, number 674, was released Friday, June 12th. This edition leads with a setback to our efforts on behalf of re-employed annuitants and sick leave equity for FERS employees. NARFE’s Action Alert for all members continues. The next scheduled Hotline is set for Friday, June 19th. (587 words; 4:07)

On June 12, the House passed the “Family Smoking Prevention and Tobacco Control Act.” The House action, by a vote of 307-97, followed by one day passage in the Senate (79-17). Upon enrollment, the measure will be sent to the White House where a signing ceremony awaits. Despite the best efforts of NARFE an allied organizations this legislation does NOT include the provision to allow federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity. Also left out is the NARFE supported provision to enable Federal Employees Retirement System (FERS) workers to credit their unused sick leave toward retirement. NARFE President, Margaret L. Baptiste, praised Senators Lieberman (I-CT), Collins (R-ME), Akaka (D-HI) and Voinovich (R-OH) and Representatives Towns (D-NY), Lynch (D-MA) and Hoyer (D-MD) for their efforts on behalf of federal employees and retirees and vowed to continue this campaign. The NARFE Press Release on our web site has more details. (Use http://www.narfe.org/departments/home/articles.cfm?ID=1824 )

Senate and House legislative drafts to entirely overhaul health care provide the ideal vehicles in which to attach our premium conversion bills. Because time to mobilize NARFE members before President Obama’s ambitious timetable of August is relatively short, NARFE President, Margaret L. Baptiste, issued an all members Action Alert requesting each NARFE member to immediately contact his or her Congressional delegation, one Representative and two Senators. (NARFE’s Legislative Action Center is set up to make this delegation outreach as easy as possible. Use www.capwiz.com/narfe)

Your message to your one Representative:

Your message to your two Senators:

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FOR IMMEDIATE RELEASE FOR INFORMATION:
June 11, 2009 Dan Adcock (703) 838-7760

NARFE Deplores Plan to Cut Earned Federal Civilian Retirement Annuities

National Active and Retired Federal Employees Association (NARFE) President Margaret L. Baptiste denounced proposals made by House Republican leaders to reduce the retirement annuities of federal workers and require them to work longer to receive their full earned annuity.

The proposals, set forth in a policy agenda released on June 4 by Minority Leader John Boehner (R-OH) and Minority Whip Eric Cantor (R-VA), recommend that the federal civilian annuity calculation be based on the highest five years of salary instead of the highest three years. The nonpartisan Congressional Budget Office (CBO) estimates that “the average new Civil Service Retirement System (CSRS) retiree would receive about $1,250 less in 2008 and $6,530 less over five years than under current law.”

In addition, the Boehner/Cantor paper recommends that federal civilian employees not be afforded their earned annuity until they reach age 62, under any circumstance. Currently, employees can retire at age 55 if they have 30 or more years of service or at age 60 if they have 20 or more years of service. Federal public safety employees are required to retire by age 57, and air traffic controllers must retire by age 56.

“Not only would these proposals dishonor the government’s obligations to its workers, but it also makes public service a much harder sell to the highly talented and skilled individuals needed to take on the challenges of recovering from an unparalleled economic upheaval, fighting two wars and defending the homeland,” Baptiste said. “The federal government should serve as a model to other employers and should not be a part of the mindless race to the bottom, which has contributed to the growing number of employees without adequate retirement savings or health insurance.”

Baptiste concluded, “Federal workers and annuitants have dedicated their careers and continue to give so much for our nation and our ideals. NARFE urges the Congress not to demean their public service by reducing the retirement and health benefits that are rightfully theirs.”

# # #

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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This NARFE Legislative Update
Number 654 released Friday, January 9th, issues an ACTION ALERT to all NARFE members focused on including Premium Conversion in the economic stimulus legislation. The next scheduled Hotline, set for Friday, January 16th, will report on December consumer prices crucial to FECA beneficiaries. (1041 words; 7:57)

NARFE President, Margaret L. Baptiste, calls on each and every NARFE member to phone, fax or e-mail their congressional delegation – one Representative and both Senators—to urge them to include Premium Conversion in the economic stimulus package being prepared by the incoming Obama Administration and Congressional leaders. In a December 23rd letter, President Baptiste urged the President-elect to “include a proposal in the economic stimulus package which would allow federal civilian annuitants as well as active duty military personnel and retirees to use pretax annuity or retirement pay dollars to pay for their share of employer-sponsored health insurance. Currently, federal annuitants and active duty military personnel and retirees are denied this benefit afforded their counterparts who are actively employed in the civil service and private sector.”

Now President Baptiste has inaugurated an URGENT ACTION ALERT to every NARFE member. Each NARFE member should immediately contact his or her Representative and two Senators to urge them to include Premium Conversion in the economic stimulus package. A groundswell of NARFE communications sent immediately could provide civilian and military retirees an economic boost that they would inject into the economy when most needed.

To both facilitate and challenge NARFE activists, the federation producing the most “per capita, electronic advocacy on the NARFE Legislative Action Center will receive a scholarship to cover the registration fee for the NARFE Legislative Training Conference in March. NARFE activists can participate by linking to www.capwiz.com/narfe and sending a prepared text to their one Representative and two Senators. The contest begins immediately and closes January 31st.

Two additional challenges, phone and fax, while outside the contest, afford telephone activists a path to make their views know immediately. The NARFE toll free number for the Capitol Switchboard, 1-866-220-0044, allows callers to ask for any Representative or Senator by name. When doing so, tell your Congressional delegation the following: “I ask that you urge the Congressional leadership to include the federal civilian/military Premium Conversion legislation in the stimulus package. In the last Congress, this legislation was introduced as H.R. 1110 and S. 773.”

On January 7th, Rep. Howard Berman (D-CA) again introduced legislation to entirely repeal both the Social Security Government Pension Offset (GPO) and Windfall Elimination Provision (WEP). The House GPO/WEP Repeal bill is H.R. 235. Berman recruited 81 original, bipartisan cosponsors including Rep. Buck McKeon (R-CA) the lead sponsor during the 109th Congress (2005-2006). NARFE members and allied groups recruited 350 cosponsors, the most ever, during the 110th Congress. (NARFE’s press release is posted at http://www.narfe.org/departments/publicrelations/articles.cfm?ID=1691 A list of the cosponsors for any legislation can be found using the Library of Congress “THOMAS” system; http://thomas.loc.gov/ )

On December 23, 2008, President Bush signed the Worker, Retiree, and Employer Recovery Act of 2008 (P.L. 110-458), which allows individuals to suspend required minimum distribution (RMD) payments for 2009 from individual retirement accounts–IRAs–and defined contribution plans–401(k)s.

In the past, individuals 70 ½ and older were required to take a minimum amount of money out of certain retirement accounts on an annual basis unless they meet select criteria, such as if they were still working. The RMD applies to IRAs and 401(k)s, including the federal government’s Thrift Savings Plan (TSP). Individuals are responsible for withdrawing the RMD each year, or they face federal tax penalties. For 2009, however, individuals 70 ½ and older will be allowed to skip a year of withdrawals from their retirement accounts without penalty. The reason for this recent tax change is that it may help certain seniors by allowing them to leave money in their accounts to bolster their retirement income rather than forcing them to withdraw money from accounts that have experienced great declines. Additionally, this change helps to offset the unusually large RMD required in 2008, due to the stock market gains as of December 2007. It is important to note that this new law did not alter 2008 required minimum distributions.

Individuals who are 70 ½ or older and who are interested in changing their previously planned 2009 RMDs should contact their retirement plan. Individuals should bear in mind that the Treasury Department has not yet issued any regulations for this new law, and retirement plans are still in the midst of altering internal procedures.

NARFE is working closely with the TSP to ensure TSP participants can take advantage of this new law. At this time, the TSP has not issued formal guidance, but anyone affected should visit the TSP Web site for updated information (www.tsp.gov). The TSP will be updating its currently posted information (http://www.tsp.gov/curinfo/login/pension-bill-language-tsp-rmd.pdf), and NARFE will share the TSP’s guidance and instructions with members just as soon as it is available. Callers can contact the TSP toll-free at 877-968-3778. (Hearing-impaired participants should use 877-847-4385, and international callers with no toll-free access should use the non-toll-free number 404-233-4400).

So far, 70 NARFE activists have registered to attend NARFE’s 2009 Legislative Training Conference, to be held Saturday, March 7 through Tuesday, March 10, at the Hyatt Regency Crystal City in Arlington, VA. NARFE President Margaret Baptiste strongly urges each Federation to use 10 percent funds to send promising leaders, especially emerging and potential federation officers.

The Conference REGISTRATION FORM and important details, including the hotel’s phone numbers (the toll-free reservation number is 1-800-233-1234, the commercial number is 703-418-1234) were mailed to chapter and federation leaders on October 1, appear in the February (page 17) and past issues (January p 13, December p. 17, and November p. 21) of our magazine, ran in the October Quarterly News, and are posted for members on the revamped NARFE web site, www.narfe.org. (The gateway to full information is http://www.narfe.org/legislation/ )

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This NARFE Legislative Hotline
Number 643, released Friday, September 12th, is devoted to news from our just concluded national convention. The next scheduled Hotline, is set for Friday, September 19. (456 words; 2:51)

Joe Beaudoin, Region 10 Vice President was elected National Vice President. He will join the three re-elected National Officers, four new regional vice presidents (regions 4, 7, 8 and 10) and six re-elected regional vice presidents to comprise the National Executive Board. In the only contested Regional VP race, Region 4 (IL, IN, MI, OH and WI) elected Paul Johnson, former Indiana Federation President, as their next Region 4 Vice President. The terms of the National Executive Board begin November 1. Detailed convention coverage, including election results, will be published in NARFE magazine’s November issue. (Daily coverage is still available on the NARFE web site, www.narfe.org)

At the 30th Biennial National Convention held this week (September 7-12, 2008) in Louisville, Kentucky, delegates approved NARFE’s Legislative Program for the 111th Congress (2009-2010), which reaffirms association’s commitment to preserving the earned economic and health security of federal annuitants and workers and support for legislation which would allow federal civilian and military retirees to pay for their share of health insurance premiums with pre-tax dollars and legislation which would repeal or reform the unfair and arbitrary Social Security Government Pension Offset (GPO) and Windfall Elimination Provision (WEP).

The Legislative Program includes two new planks. First, that NARFE formally support legislation allowing Federal Employees Retirement System employees to credit their unused sick leave towards retirement and second; NARFE support legislation to provide that dependents of federal employees and retirees remained covered by the Federal Employees Health Benefits Program (FEHBP) until age 25.

(Web site of the week: NARFE’s own site has been enhanced with the addition of the 2007-2008 voting analysis. This seven page “portable document format” section will appear in the October NARFE magazine and is titled “How They Voted: 110th Congress.” Point your browser to http://www.narfe.org/departments/leg/guest/articles.cfm?ID=728 and find “Read more” under Legislative Publications. Our Legislative Action Center allows another route to finding the just released votes for individual congressional delegations. Use www.capwiz.com/narfe as the gateway. Insert your ZIP Code or ZIP+4 to see a display of your two U.S. Senators and Representative. Select “Votes” under a legislator’s picture to see how they voted on 3 Senate or 5 House votes during 2007-2008. Earlier votes are still available.)
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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.

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.

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.

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.

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 46,000 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 624, was released Friday, April 11. An update on new and pending legislation leads this Hotline. The next Hotline, set for Friday, April 18, will report on March consumer prices. (572 words; 4:12)

The approach of the tax filing deadline, April 15, is an appropriate time to remind all NARFE members that a NARFE legislative priority, Premium Conversion, H.R. 1110 and S. 773, need your help to obtain new cosponsors, particularly Members of the House Ways and Means and Senate Finance Committees which have jurisdiction over this legislation. While 31 Ways and Means Members have signed on to the bill, ten have not. Likewise 12 Senators on the Finance Committee have cosponsored, but 9 have not. The legislators, by state, who serve on the jurisdictional committees but are not among the current cosponsors are: Rep. Artur Davis, AL-7, Sen. Jon Kyl, AZ, Rep. Devin Nunes, CA-21, Sen. Ken Salazar, CO, Rep. John Larson, CT-1, Sen. Charles Grassley, IA, Rep. John Linder, GA-7, Rep. Jim McCrery, LA-4, Sen. John Kerry, MA, Rep. Sander Levin, MI-12, Rep. Kenny Hulshof, MO-9, Sen. Max Baucus, MT, Sen. John Ensign, NV, Sen. Jeff Bingaman, NM, Rep. Charles Rangel, NY-15, Rep. Thomas Reynolds, NY-26, Sen. Kent Conrad, ND, Sen. Ron Wyden, OR, and Rep. Sam Johnson, TX-8. Enactment of this legislation would allow civilian and military retirees to pay for health insurance premiums on a pre tax basis and would save a typical retiree enrolled in FEHBP an average of $820 per year. (The gateway to NARFE priority legislation is http://www.capwiz.com/narfe/issues/bills)

On April 8, Rep. Carolyn Maloney, D-NY, and 21 cosponsors introduced legislation, H.R. 5718, to improve family and medical leave for federal employees. The bill also requires the Government Accountability Office (GAO) to study the feasibility of offering disability insurance to federal workers. This bipartisan legislation is referred to the House Oversight and Government Reform Committee and the Education and Labor Committee. The Oversight and Government Reform Committee Subcommittee on the Federal Workforce is scheduled to mark-up the bill on Tuesday, April 15.

NARFE members report being asked to help citizens without access to the Internet and in need of help to obtain economic stimulus payment information and forms. The Internal Revenue Service (http://www.irs.gov) has an 8 page “portable document format” form explaining the process and including the Form 1040A. IRS has mailed this packet to most public libraries. (Use the following URL: http://www.irs.gov/formspubs/index.html?portlet=3 Archived editions of the Legislative Hotline provided full coverage of economic stimulus payments. Use the following address:

http://www.narfe.org/departments/leg/member/print.cfm?ID=1399&CFID=146585&CFTOKEN=10768129

Food banks in most areas of the country report low food stocks and high demand. On SATURDAY, May 10, the National Association of Letter Carriers will conduct their 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. Results of the Food Drive will be reported in our magazine.

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We are receiving requests for National Convention Forms (Voting Strength and Proxy Forms). Please be advised that the necessary forms will be sent out exactly as we have in the past. Every Chapter will receive the necessary forms with instructions in their April M-114 Seminar-Annual Roster, which will be mailed toward the end of April 2008.

Concerning the submission of Proposed Bylaw/Standing Rule Amendment (F-3C) and Proposed Convention Resolution (F-3A) forms, they must arrive at NARFE Headquarters (National Secretary’s Office) by June 2, 2008.

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The NARFE Legislative Hotline, number 619, was released Wednesday, February 20th. This Hotline leads with January consumer price news. Due to the congressional recess, the next Hotline is set for Leap Day, Friday, February 29th. (443 words; 3:23)

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent in January 2008 according to the Bureau of Labor and Statistics (http://www.bls.gov/cpi or 202/691-6994). Released on February 20, the CPI-W for January is 206.7. For purposes of calculating the next COLA (cost-of-living adjustment) the index is currently 1.5 percent above the 2007 third quarter average base index of 203.6. February consumer price indices will be released on Friday, March 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. January’s index, the first for the new year, is 0.5 percent higher than the December 2007 base of 205.7. As a result of the calendar year 2007 raise in the CPI-W, FECA beneficiaries will see a 4.3 percent COLA in their April 2008 benefit payment.

Both of NARFE’s legislative priorities have added House cosponsors. This month, Premium Conversion gained three new cosponsor: Rep. Joe Wilson, R-SC, Rep. Laura Richardson, D-CA, and Rep. Chaka Fattah, D-PA. The total is now 307. Government Pension Offset/Windfall Elimination Provision Repeal legislation, H.R. 82, added Rep. Steve Chabot, R-OH, and Rep. Ike Skelton, D-MO. The total is now 339. While both House and Senate GPO/WEP Repeal bills have record cosponsorship, 7 Senators and 34 Representatives are “lapsed” cosponsors of Premium Conversion legislation meaning they cosponsored an identical bill in the 109th Congress but have NOT YET done so in the current Congress. The seven Senators are: both Arizona Senators Kyl and McCain, Florida’s Martinez, Hawaii’s Inouye, Nebraska’s Hagel, Nevada’s Reid and West Virginia’s Byrd. Recovering these Senators would set a new Senate record for NARFE. (The gateway to NARFE priority legislation is http://capwiz.com/narfe/issues/bills/).

Since the 2008 National Defense Authorization Act (P.L. 110-181) restores collective bargaining rights to employees of the Department of Defense, the legal challenge to the National Security Personnel System (NSPS) has been withdrawn. More about the Defense Workers Coalition on the web site of the American Federation of Government Employees, www.afge.org

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The NARFE Legislative Hotline, number 617, was released Friday, February 8th. This Hotline covers the economic stimulus legislation which is cleared for the President’s signature. The next Hotline is set for Friday, February 15th.

The economic stimulus package first negotiated by House leaders of both parties and President Bush, overcame a bump in the Senate and is likely to be presented to the White House as early as February 8. President Bush will sign the bill into law. Perhaps with an eye on their dismal ratings by the public, two branches of the federal government moved with unusual dispatch to draft, pass, amend and clear legislation, H.R. 5140, to provide economic stimulus through recovery rebates to individuals, incentives for business investment, and an increase in conforming and Federal Housing Administration loan limits.

After rapid and overwhelmingly approval (385-35) in the House, the Senate Finance Committee approved their own version of the bill last week, which Senate Republicans initially opposed because they preferred taking immediate action in favor of the House-passed bill. The compromise made this week by Democratic and Republican leaders retained most of the Finance Committee’s plan – which had been left out of the House version -- to expanded eligibility for tax rebate checks to disabled veterans and most low-income seniors. However, an extension of unemployment benefits, renewable energy tax breaks and an increased in funding for low-income home heating assistance was dropped from the final bill which passed the Senate on Thursday, February 7 by a vote of 81-16. The House later cleared the bill by a 380-34 margin and the measure was sent to the White House.

Enlarging the number of rebate eligible retirees is a victory for NARFE and our coalition partners in the Leadership Council of Aging Organizations (www.lcao.org), which had strongly supported including additional retirees. Furthermore, senior grassroot activism and Capitol Hill lobbying has brought assurances of a Presidential signature. While most federal annuitants would have received a tax rebate under the stimulus package passed by the House last week, a larger percentage was made eligible under the final bill approved yesterday. More details about this legislation will be included in the April NARFE magazine. (For a complete legislative history insert the bill number, H.R. 5140, at http://thomas.loc.gov or use http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.05140:)

The Bush Administration’s final budget message, released February 4th, contains no major changes, or scored savings, in programs directly impacting the income or health care security of federal retirees. The President’s budget does propose pay disparity with a half percent higher pay raise proposed for military (3.4) than civilian workers (2.9). The President’s fiscal year (FY) 2009 budget also includes a plan to expand Health Savings Accounts (HSAs) in the Federal Employees Health Benefits Program (FEHBP). As in recent years, the Administration’s budget would allow Blue Cross/Blue Shield (BC/BS), the largest and most popular in the FEHBP, to offer Health Savings Accounts coupled with a high deductible health plan. (An earlier press release provides further detail at http://www.narfe.org/departments/pr/guest/articles.cfm?ID=1085)

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Annual Electronic Filing Requirement for Small Exempt Organizations
—
Form 990-N (e-Postcard)

THE E-POSTCARD IS NOW AVAILABLE ON-LINE
AT THE FOLLOWING ADDRESS:

http://epostcard.form990.org/

Many chapter and federation officers may be aware of the new IRS regarding the form 990-N or the e-postcard. The National Treasurer’s office has made concerted efforts to keep everyone informed.

The regulation requires small tax-exempt organizations whose gross receipts are normally $25,000 or less to electronically submit Form 990-N, also known as the e-Postcard.

The Pension Protection Act of 2006 added this filing requirement to ensure that the IRS and potential donors have current information about your organization.

Due Date of the e-Postcard

The first e-Postcards are due in 2008 for tax years ending on or after December 31, 2007. The e-Postcard is due every year by the 15th day of the 5th month after the close of your tax year[1]. For example, if your tax year ended on December 31, 2007, the e-Postcard is due May 15, 2008. You cannot file the e-Postcard until after your tax year ends.

THE E-POSTCARD IS NOW AVAILABLE ON-LINE AT THE FOLLOWING ADDRESS.

http://epostcard.form990.org/

[1] A tax year is usually 12 consecutive months. There are two kinds of tax years:

· Calendar Tax Year - This is a period of 12 consecutive months beginning on January 1 and ending on December 31; or

· Fiscal Tax Year - This is a period of 12 consecutive months ending on the last day of any month except December.

Thank you for using the Hotline.
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The NARFE Legislative Update, number 594, released Friday, July 20th. This hotline leads with consumer price news. The NARFE web site, www.narfe.org, provides Lobby Month information. The next scheduled Hotline is set for Friday, July 27th. (542 words; 3:19)

On July 18th, the Labor Department’s Bureau of Labor Statistics (www.bls.gov/cpi or 202/691-6994) reported the consumer price index for Urban Wage Earners and Clerical Workers, the CPI-W, for June is 203.906, up 0.1 percent from the May index of 203.661. For purposes of calculating the next COLA (cost of living adjustment), June’s index is 2.4 percent higher than the third quarter average base index in 2006 (199.1). (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) receive a COLA based on the change in the CPI-W during each calendar year. The June index, 203.906, is 3.4 percent higher that the December 2006 index of 197.2. July consumer price indices will be released Wednesday, August 15th. (The COLA Update is posted at http://www.narfe.org/departments/leg/guest/articles.cfm?ID=942 )

August is LOBBY MONTH! For three consecutive months, NARFE magazine has alerted and prepped each NARFE member to use the summer recess (August 6 - September 3) to lobby his or her congressional delegation – one Representative and two Senators. In the July issue (page 16), Judy Park, NARFE Legislative Director, advised “August is a good month for citizen lobbyists to meet and talk with legislators on their home turf.” Again on page 14 of the August magazine and on the top of the home page of our web site, www.narfe.org, there is a call to all NARFE members to actively participate in Lobby Month.

On July 18th, the Senate cleared legislation for the President that would allow the rehiring of Foreign Service retirees to tackle a huge backlog of passport applications. The legislation would allow the retirees, who are already trained, to be rehired temporarily without a salary offset.

NARFE activists in Maine, Michigan, New Jersey and Washington have persuaded both senators to cosponsor both NARFE priority bills. This means one or both Senators in 46 states need further persuasion to cosponsor one or both NARFE priorities. Many legislators, 22 Senators and 123 Representatives, are “lapsed” cosponsors. Lapsed means NARFE activists convinced a legislator to cosponsor during 2005-2006 but not YET in the current Congress. Use the Legislative Action Center on the NARFE web site to find your delegation and their current status on NARFE priority legislation AND then take action. The NARFE Legislative staff can also help callers to 703/838-7760. (Insert your ZIP Code after directing your web browser to http://capwiz.com/narfe/dbq/officials/ For a display of NARFE supported bills use: http://capwiz.com/narfe/issues/bills ) (GEMS members in the 94 congressional districts and 16 states with a “lapsed” cosponsor were sent a targeted GEMS message identifying the “lapsed” and urging action to recover these 145 lawmakers.)

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The NARFE Legislative Update, number 593, released Friday, the 13th of July. This hotline and the NARFE web site, www.narfe.org, lead with Lobby Month information. A cosponsor update of NARFE priority legislation is provided. The next scheduled Hotline, set for Friday, July 20th, will report June consumer price news. (485 words; 3:17)

August is LOBBY MONTH! For three consecutive months, NARFE magazine has alerted and prepped NARFE members to use the summer recess (August 6 - September 3) to lobby their congressional delegations – one Representative and both Senators. In the July issue (page 16), Judy Park, NARFE Legislative Director, advised “August is a good month for citizen lobbyists to meet and talk with legislators on their home turf.” Again on page 14 of the August magazine and on the top of the home page of our web site, www.narfe.org, there is a call to all NARFE members to actively participate in Lobby Month.

The latest cosponsors of NARFE priority legislation are solely additions to Premium Conversion. Sen. Pete Domenici (R-NM), Sen. Orrin Hatch (R-UT) and Sen. Chris Dodd (D-CT) were made cosponsors of Sen. Warner’s (R-VA) Premium Conversion legislation, S. 773, bringing the total to 43. On July 10th and 12th, 18 Representatives were made cosponsors of H.R. 1110, Rep. Tom Davis’ (R-VA) Premium Conversion bill. Premium Conversion now has 228 cosponsors. Thanking recent cosponsors is an excellent way to show appreciation and attentiveness. A targeted GEMS message has been sent to NARFE members represented by such lawmakers.

NARFE activists in Maine, Michigan, New Jersey and Washington have persuaded both senators to cosponsor both NARFE priority bills. This means one or both Senators in 46 states need further persuasion to cosponsor one or both NARFE priorities. Many legislators, 23 Senators and 123 Representatives, are “lapsed” cosponsors. Lapsed means NARFE activists convinced a legislator to cosponsor during 2005-2006 but not YET in the current Congress. Use the Legislative Action Center on the NARFE web site to find your delegation and their current status on NARFE priority legislation AND then take action. The NARFE Legislative staff can also help callers to 703/838-7760. (Insert your ZIP Code after directing your web browser to http://capwiz.com/narfe/dbq/officials/ For a display of NARFE supported bills use: http://capwiz.com/narfe/issues/bills ) (GEMS members in the 17 states with one or both Senators in the “lapsed” category were sent a targeted GEMS message identifying the “lapsed” and urging action to recover these 20 Senators.)

Charlie Cook, a well-known Washington pundit, makes his weekly political column, “Off to the Races,” available for free. To sign up, go to http://nationaljournal.com/about/cookcolumn.htm

The NARFE Legislative Update, number 592, released Friday, June 29th. A snapshot of NARFE priority legislation is provided as the Congress heads home for a week with the voters. The NARFE web site, www.narfe.org, leads with Lobby Month information. Due to the recess, the next scheduled Hotline is set for Friday, the 13th of July. (540 words; 3:35)

The latest cosponsors of NARFE priority legislation are: 1) Sen. Robert Casey (D-PA) was made the 32nd cosponsor of Sen. Feinstein’s bill, S. 206, to entirely repeal the Social Security Government Pension Offset (GPO) and Windfall Elimination Provision (WEP); 2) the House companion bill on GPO/WEP Repeal, H.R. 82, added four cosponsors for a total of 322; 3) Sen. Edward Kennedy (D-MA) was made the 40th cosponsor of Sen. Warner’s (R-VA) Premium Conversion legislation, S. 773 and 4) Rep. Colin Peterson (D-MN) and Rep. Leonard Boswell (D-IA). became the 208th and 209th cosponsors of H.R. 1110, Rep. Tom Davis’ (R-VA) Premium Conversion bill. Premium Conversion means allowing civilian and military retirees to pay monthly health care premiums on a pre-tax basis.

NARFE members should use the Independence District work period, from Friday, June 29th until Monday July 9 for the Senate and Tuesday, July 10th for the House, to find and meet with their congressional delegations. Where you find a parade you will find a politician. Thank your legislators for leaving the earned benefits of federal service out of the budget resolution.

August is LOBBY MONTH! NARFE magazine, in June and July and coming in the August issue, advises readers that Members of Congress will spend from early August through Labor Day in their state and district offices. Judy Park writes “August is a good month for citizen lobbyists to meet and talk with legislators on their home turf.” A call to all NARFE members to participate in Lobby Month was just posted at the top of the NARFE home page and ends with a link to important details.

NARFE activists in Maine, Michigan, New Jersey and Washington have persuaded both senators to cosponsor both NARFE priority bills. This means one or both Senators in 46 states need further persuasion to cosponsor one or both NARFE priorities. Many legislators, 25 Senators and 134 Representatives, are “lapsed” cosponsors. Lapsed means NARFE activists convinced a legislator to cosponsor during 2005-2006 but not YET in the current Congress. Use the Legislative Action Center on the NARFE web site to find your delegation and their status on NARFE priority legislation AND then take action. The NARFE Legislative staff can also help callers to 703/838-7760. (Insert your ZIP Code after directing your web browser to http://capwiz.com/narfe/dbq/officials/ For a display of NARFE supported bills use: http://capwiz.com/narfe/issues/bills ) (GEMS members in the 23 states with one or both Senators in the “lapsed” category have been sent a targeted GEMS message identifying the “lapsed” and urging action to recover these 26 Senators.)

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The NARFE Legislative Update, number 591, released Friday, June 22nd. OPM’s announcement on a retiree tax exclusion is the lead. August Lobby Month information is also provided. The next scheduled Hotline is set for Friday, June 29th. (758 words; 4:55)

The Office of Personnel Management (OPM) announced Wednesday, June 20, that retired federal public safety officers will be eligible to exclude up to $3,000 in payments made after 2006 from their retirement annuities for their share of Federal Employees Health Benefits Program (FEHBP) premiums and Federal Long Term Care Insurance Program (FLTCIP) premiums. For purposes of this tax provision, public safety officers are defined as retired law enforcement officers, firefighters, chaplains, or member of a rescue squad or ambulance crew. Congress enacted pension reform legislation last year which included a provision to extend such tax relief to retired state and local government public safety officers. However, OPM and others had said up until this Wednesday that retired federal public safety officers would not be eligible. OPM’s reversal means retired federal public safety officers can enjoy the tax benefit.

Unlike employee premium conversion programs (which are handled automatically by employers), retired public safety officers who decide to take advantage of the tax relief will have to identify their eligibility and report their excluded income to the Internal Revenue Service (IRS) in their federal tax filings. Such retirees do not need to take any action now, but can wait until they start preparing their federal tax forms for the 2007 taxable year. In the coming months, NARFE magazine will provide more details about the new public safety officers’ tax provisions. In addition, NARFE will use this precedent setting decision to support the association’s efforts in Congress to extend similar health tax relief to all other federal retirees.

August is LOBBY MONTH! NARFE magazine, in June (page 14), July (page 16) and coming in the August issue, advises readers that Members of Congress will spend from early August through Labor Day in their state and district offices. Judy Park writes “August is a good month for citizen lobbyists to meet and talk with legislators on their home turf.” Nearly all Representatives and many Senators, especially the third facing re-election, will be in their home districts and states conducting town meetings and other official functions. NARFE officers and activists, including Regional Vice Presidents, will be organizing activities in states and Congressional Districts.

Due to the good work of NARFE activists, NARFE supported legislation on Premium Conversion (H.R. 1110 and S. 773) added cosponsors. (The link for a cosponsor list is: http://capwiz.com/narfe/issues/bills/?bill=9234381&cs_party=all&cs_status=C&cs_state=ALL ) H.R. 1110 sponsor, Rep. Tom Davis (R-VA), added 9 bipartisan cosponsors to Premium Conversion since the last Hotline. The total is 207. (The link for a state-by-state cosponsor list is http://capwiz.com/narfe/issues/bills/?bill=9395386&cs_party=all&cs_status=C&cs_state=ALL) The Senate sponsor of Premium Conversion legislation, Sen. John Warner (R-VA), added 4 cosponsors. Sens. Norm Coleman (R-MN), Thad Cochran (R-MS), Lisa Murkowski (R-AK) and Debbie Stabenow (D-MI). S. 773, has 39 cosponsors, but identical legislation in the last Congress reached 64. (The link to this group of 64 prior cosponsors is http://capwiz.com/narfe/issues/bills/?bill=7148236&cs_party=all&cs_status=C&cs_state=ALL )

(NARFE activists in Maine, New Jersey and Washington have persuaded both senators to cosponsor both NARFE priority bills. This means one or both Senators in 47 states need further persuasion to cosponsor one or both NARFE priorities. Many legislators are “lapsed” cosponsors. Lapsed means NARFE activists convinced a legislator to cosponsor during 2005-2006 but not YET in the current Congress. Use the Legislative Action Center on the NARFE web site to find your delegation and their status on NARFE priority legislation AND then take action. (Insert your ZIP Code after directing your web browser to http://capwiz.com/narfe/dbq/officials/ For a display of NARFE supported bills use: http://capwiz.com/narfe/issues/bills ) (GEMS members in the 23 states with one or both Senators in the “lapsed” category have been sent a targeted GEMS message identifying the “lapsed” and urging action to recover these 26 Senators.))

Rep. Jim Moran (D-VA) introduced NARFE supported legislation to clarify the method for computing certain annuities under the Civil Service Retirement System which are based on part-time service. Moran’s legislation, H.R. 2780, referred to the Committee on Oversight and Government Reform, would benefit both current employees and retirees.

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
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The NARFE Legislative Update, number 590, released Friday, June 15. May consumer price news leads. August Lobby Month information is also provided. The next scheduled Hotline is set for Friday, June 22nd. (759 words; 4:55)

On June 15th, the Labor Department’s Bureau of Labor Statistics (www.bls.gov/cpi or 202/691-6994) reported the consumer price index for Urban Wage Earners and Clerical Workers, the CPI-W, for May is 203.661, up 0.8 percent from the April index of 202.130. For purposes of calculating the next COLA (cost of living adjustment), May’s index is 2.3 percent higher than the third quarter average base index in 2006 (199.1). (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) receive a COLA based on the change in the CPI-W during each calendar year. The May index, 203.661, is 3.3 percent higher that the December 2006 index of 197.2. June consumer price indices will be released Wednesday, July 18th. (The COLA Update is posted at http://www.narfe.org/departments/leg/guest/articles.cfm?ID=942 )

August is LOBBY MONTH! NARFE magazine, in both June (page 14) and July (page 16) issues, reminds readers that Members of Congress will spend from early August through Labor Day in their state and district offices. Judy Park writes “August is a good month for citizen lobbyists to meet and talk with legislators on their home turf.” Nearly all Representatives and many Senators, especially the third facing re-election, will be in their home districts and states conducting town meetings and other official functions. NARFE officers and activists, including Regional Vice Presidents, will be organizing activities in states and Congressional Districts.

Due to the good work of NARFE activists, NARFE supported legislation in both the House and Senate on Premium Conversion (H.R. 1110 and S. 773) and Social Security Government Pension Offset and Windfall Elimination Provision Repeal (H.R. 82 and S. 206) continue to gain cosponsors. A new high water mark for Senate cosponsors was reached on June 13th when the Senate sponsor of GPO/WEP Repeal, Sen. Dianne Feinstein (D-CA), added Sen. David Vitter (R-LA) as the 31st cosponsor. H.R. 82 sponsor, Rep. Howard Berman (D-CA), added six cosponsors to GPO/WEP on June 11th. The total, 314, is 14 shy of the 2005-2006 total. (The link for a cosponsor list is: http://capwiz.com/narfe/issues/bills/?bill=9234381&cs_party=all&cs_status=C&cs_state=ALL ) H.R. 1110 sponsor, Rep. Tom Davis (R-VA), added 9 bipartisan cosponsors to Premium Conversion on June 14th for a total of 198. (The link for a state-by-state cosponsor list is http://capwiz.com/narfe/issues/bills/?bill=9395386&cs_party=all&cs_status=C&cs_state=ALL) On June 12, the Senate sponsor of Premium Conversion legislation, Sen. John Warner (R-VA), added Sen. Blanche Lincoln (D-AR). S. 773, has 35 cosponsors, but identical legislation in the last Congress reached 64. (The link to this group is http://capwiz.com/narfe/issues/bills/?bill=7148236&cs_party=all&cs_status=C&cs_state=ALL )

NARFE activists in Maine, New Jersey and Washington have persuaded both senators to cosponsor both NARFE priority bills. This means one or both Senators in 47 states need further persuasion to cosponsor one or both NARFE priorities. Many legislators are “lapsed” cosponsors. Lapsed means NARFE activists convinced a legislator to cosponsor during 2005-2006 but not YET in the current Congress. An Oklahoma NARFE leader reported that his reminder call was enough to recruit a “lapsed” cosponsor. That legislator, lapsed on both bills, is now a cosponsor of both. Use the Legislative Action Center on the NARFE web site to find your delegation and their status on NARFE priority legislation AND then take action. (Insert your ZIP Code after directing your web browser to http://capwiz.com/narfe/dbq/officials/ For a display of NARFE supported bills use: http://capwiz.com/narfe/issues/bills ) (GEMS members in the 23 states with one or both Senators in the “lapsed” category have been sent a targeted GEMS message identifying the “lapsed” and urging action to recover these 26 Senators.)

Two items on NARFE convention mandated Legislative Program are in the news. Legislation to limit the penalty for late enrollment in Medicare Part B was introduced by Rep. Barney Frank (D-MA). Rep. Frank’s bill, H.R. 2591, was introduced June 6th with 24 original cosponsors. Legislation, S. 1257, to extend voting rights in the House of Representatives to the District of Columbia, won approval from the Senate Governmental Affairs Committee, 9 to 1.

***
The NARFE Legislative Update, number 589, released Friday, June 8. Further information on Lobby Month is the lead. Coverage of new GPO (S. 1254) and WEP (H.R. 726) legislation is also provided. The next scheduled Hotline, set for Friday, June 15, will report May consumer price news. (725 words; 4:35

The June (page 14) and July (page16) issues of NARFE magazine have alerted NARFE members that August is Lobby Month. Both issues remind readers that Members of Congress will spend from early August through Labor Day in their state and district offices. Judy Park writes “August is a good month for citizen lobbyists to meet and talk with legislators on their home turf.” Nearly all Representatives and many Senators, especially the third facing re-election, will be in their home districts and states meeting voters and conducting a few fundraisers. NARFE officers and activists, including Regional Vice Presidents, will be organizing activities in states and Congressional Districts.

Sponsors of NARFE supported legislation on the Social Security Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) are pictured in July’s NARFE (page 14). Sen. Barbara Mikulski (D-MD) introduced S. 1254 to create a hold harmless threshold for individuals, including school district, municipal, state and federal civil service, receiving a spousal Social Security benefit. Similarly, in the other chamber, Rep. Barney Frank (D-MA) introduced H.R. 726 to reduce the onerous Windfall Elimination Provision’s impact on persons with both a civil service annuity and their own Social Security benefit. NARFE members should contact their congressional delegation, one Representative and both Senators, to urge them to cosponsor and work for passage of the Mikulski and Frank bills. Both are displayed on our Legislative Action Center. (The NARFE press release on S. 1254 is found at: http://www.narfe.org/departments/hq/guest/articles.cfm?ID=1160 and the gateway to NARFE’s issue papers, including GPO and WEP is http://www.narfe.org/departments/leg/guest/articles.cfm?ID=728 )

Due to the good work of NARFE activists, NARFE supported legislation in both the House and Senate on Premium Conversion (H.R. 1110 and S. 773) and Social Security Government Pension Offset and Windfall Elimination Provision Repeal (H.R. 82 and S. 206) continue to gain cosponsors. H.R. 1110 sponsor, Rep. Tom Davis (R-VA), added 10 bipartisan cosponsors to Premium Conversion on June 5th for a total of 189. (The URL for a state-by-state cosponsor list is http://capwiz.com/narfe/issues/bills/?bill=9395386&cs_party=all&cs_status=C&cs_state=ALL) H.R. 82 sponsor, Rep. Howard Berman (D-CA), last added cosponsors to GPO/WEP on May 24th. The total is 308. (The URL for a cosponsor list is: http://capwiz.com/narfe/issues/bills/?bill=9234381&cs_party=all&cs_status=C&cs_state=ALL ) In recent days, the Senate sponsor of Premium Conversion legislation, Sen. John Warner (R-VA), has added four bipartisan cosponsors. They are: Pat Roberts (R-KS), Barbara Mikulski (D-MD) Sherrod Brown (D-OH) and Chuck Schumer (D-NY) S 773 now has 34 cosponsors. (GEMS members in the 23 states with one or both Senators in the “lapsed” category will receive a targeted GEMS message identifying the “lapsed” and urging action to recover these 27 Senators.)

In only three states, Maine, New Jersey and Washington, have both senators been persuaded to cosponsor both NARFE priority bills. These states have done a good job on their House delegations. New Jersey has again persuaded 12 of its 13 Representatives to cosponsor both bills. The June magazine (pages 18-21) showed many legislators are in the “lapsed” category. Lapsed means NARFE activists convinced a legislator to cosponsor during 2005-2006 but not YET in the current Congress. An Oklahoma NARFE leader reported that his reminder call was enough to recruit a “lapsed” cosponsor. Use June’s NARFE magazine and the Legislative Action Center on the NARFE web site to find your delegation and their status on NARFE priority legislation AND then take action. (Insert your ZIP Code after directing your web browser to http://capwiz.com/narfe/dbq/officials/ For a display of NARFE supported bills use: http://capwiz.com/narfe/issues/bills )

Page 17 in both the June and July issues of NARFE magazine announces NARFE’s Congressional Directory for the 110th Congress. Chapters and Federations should purchase a copy for their legislative officer and publicize the Directory, perhaps by reprinting the order form in chapter newsletters.

Thank you for using the Hotline.

***

President Ann Collins of the Virginia Federation prepared a summary of the convention which I will share with you below.
National Active and Retired Federal Employees Association

Virginia Federation of Chapters
September 19, 2006

MEMO TO CHAPTER PRESIDENTS AND VICE PRESIDENTS:
(BCC: Chapter Secretaries, Net Coordinators; VFC Board)
NOTE: If you are no longer holding the office of Chapter President,
please pass this correspondence on to your successor. Thanks.)

SUBJECT: Highlights of the 2006 NARFE National Convention,
September 10-14, Albuquerque, NM

FROM: Ann M. Collins, VFC President
NARFE893@AOL.COM

1. VFC Chapter Representation. The Virginia Federation had 100% voting representation at the Convention by each of the 56 chapters, either in person by a chapter voting representative or a designated proxy. At the July VFC Board meeting, the Board approved a $100 incentive payable after the Convention to each chapter sending a chapter voting representative. Special thanks goes to those 20 chapters that had a chapter voting representative at the Convention. Accordingly, the VFC Treasurer has been authorized to disburse a check for $100 to be sent directly to the Chapter Treasurers for each of the following chapters:

111 Roanoke Valley 1270 Woodbridge

180 Winchester 1472 Colonial Heights

232 Alexandria 1549 Fauquier

489 McLean 1665 NOVA Metro

682 Peninsula 1682 Chesapeake

737 Fairfax 1823 Northern Neck

893 Springfield 2065 Louisa

974 Virginia Beach 2080 Piedmont

1159 Annandale 2265 Midlothian

1241 Dulles 2343 Falls Run

2. Convention Highlights on the NARFE Web. Nearly 2,000 delegates, members, spouses, friends and guests representing 1,500 NARFE chapters nationwide, attended the convention held September 10-14, 2006 in Albuquerque, N. M. The NARFE web site at www.narfe.org has detailed information about the Convention. Chapter members should be encouraged to access the NARFE web to read the day-by-day accounts of Convention actions:

(1) Sign in as a member

(2) Go to "NARFE's 29th Convention" and click on "read more"

(3) Go to "Daily Posts" and click on "read more." (this link provides 23 separate detailed articles to review)

Rather than repeat the detailed information on the VFC web site, we will try to have a link directly to the Convention information on the National web site.

3. Federation Presidents' Meeting, Saturday, September 9. Federation Presidents were preassigned by National to one of three groups and met from 9:00 a.m. - 5:00 p.m. There were three main topics for discussion: Membership Retention, Mandatory Chapter Membership, and National Dues. In the late afternoon, each group gave a report to the National resident officers identifying the major challenges, proposing solutions and identifying those to be implemented by the chapters, federations, and/or National.

4. Election of NARFE Resident Officers and Region X NFVP (take office November 1, 2006):

National President: There were three candidates. Margaret L. Baptiste (current Federation President of South Carolina and Past National Vice President), who only entered the race a week before the Convention, garnered 3,451 votes (53.2% of the votes cast) to defeat NARFE National Vice President Dr. Dan C. Galvan, 2,827 votes, and Former NARFE National President Charles W. Carter, 205 votes. She takes office November 1, 2006, succeeding Charles L. Fallis, who was term-limited from seeking re-election. She is the first woman and the first survivor annuitant to be elected National President of NARFE.
National Vice President: There were two candidates. Region X NFVP
Bill Austin defeated Ronald Bowers, Past President of the Maryland Federation, with votes of 4,664 (73%) to 1,752 (27%).
National Secretary: There were two candidates. Nathaniel Brown, President of the Arizona Federation, received votes of 3,275 (50.49 %) to 3,212 (49.51%), edging Florida Federation Secretary Steve Henderson in the closest contest for National office.

National Treasurer: NARFE National Treasurer Richard C. Ostergren was re-elected by acclamation after no other candidate for the office came forward.
Region X National Field Vice President: There were two candidates. In a close race,
Joseph Beaudoin, Immediate Past VFC President, was elected 439 (54%) to 365 (46%) over Immediate Past Kentucky Federation President Clayton Shannon.
Region X currently has three members on the National Executive Board (NEB) and will continue to have two members on the NEB after November 1, 2006.
5. Site for NARFE 2010 National Convention. Five cities vied to host the 2010 Convention: Grand Rapids, MI., Palm Springs, CA., Dallas, TX., Kansas City, MO., and Reno, NV. None of the five cities received a majority of the votes cast, therefore, a run-off election was held on Thursday between Grand Rapids and Reno. Grand Rapids received 3,074 votes or 55.75% of the total. The host hotel in Grand Rapids, MI. will be The Amway Grand, with 682 rooms. The hotel is connected to the Convention Center by Skywalk. A room rate for 2010 is $95. Parking is $11. A companion hotel, Courtyard by Marriott, is connected to the Convention Center. Rates there are $80.
6. Four Propositions Placed on the Ballot. Voting delegates passed only one of four
propositions placed on the ballot. The only measure approved will bring the Association?s
Articles of Incorporation into compliance with the laws of the District of Columbia. The
three other propositions failed to get the necessary two-thirds vote. One would have
established a single dues structure covering national, federations and chapters. Two
dealt with remuneration for National Resident Officers. The first would have increased
the salary of the National Treasurer, to $86,095.13, making it the same as the National
Secretary?s, to reflect a change in the distribution of duties and responsibilities of the
positions. The second would have paid a housing allowance of $2,000 per month to any
National Resident Officer who had an established residence 100 miles or more from
NARFE Headquarters.
7. Legislative Program Adopted for 110th Congress. The Convention delegates approved
a Legislative Program for the 110th Congress, which will convene in January 2007. Drawn
up by the Legislation Committee, the Legislative Program contains goals in three areas:
preserving existing benefits, enhancing existing benefits and additional priorities. Its features
will be explained in detail in an upcoming issue of NARFE magazine.

8. Resolutions Introduced by the NEB:
    06-02 - Articles of Incorporation - One of four proposition on ballot - Adopted
    06-13 - Life Membership - Defeated
    06-15 - Mandatory Chapter Membership - Defeated
    06-40 - Election of NEB - Motion by ByLaws Committee was adopted to
               refer the one-member-one-vote issue to NEB to develop and prepare an
               implementing resolution for consideration at the 2008 National Convention.
    06-53 - Federation Objectives - Adopted - Allows Federation Presidents to appoint
members for a one-year period to chapters needing officers and, as need arises, provide
service to members of closed chapters by assigning them to a statewide chapter.
9. Resolutions from Virginia Chapters:
    06-17 - Single Dues. Incorporated in "Association Dues" proposition on ballot - Defeated
    06-23 - Single Dues. Incorporated in "Association Dues" proposition on ballot - Defeated

    06-60 - One-Member-One-Vote. Motion by ByLaws Committee was adopted to
                 refer issue to NEB to develop and prepare an implementing resolution for
                 consideration at the 2008 National Convention.

    06-62 - Chapter Proxy Determination - Defeated
    06-85 - OPM Application for Medicare Modernization Act Subsidy - Adopted as amended
    06-87 - Need for Qualified Geriatric Care in FEHBP - Adopted as amended
    06-120 - Nonresident Officers - Defeated
10. New Business.
      (1)   "M" Word Banned. Convention reports indicate that regardless of what other legacy the
29th NARFE Convention will have, it will be remembered as the one that removed the word
?mandatory? from NARFE vocabulary, specifically with regard to chapter membership. As
the convention wound down, Thomas Longo of Maryland moved that the word ?automatic
? be used in place of ?mandatory? in all NARFE writings and discussion of chapter
membership. He called it a ?more neutral and palatable? word. On a voice vote, the
required two-thirds majority was attained, and the ?M? word was banned from NARFE.
      (2) National Executive Board (NEB) to Study NEB Compensation Structure. Also
under New Business, delegates adopted a motion to allow the NEB to conduct a study of
its own pay structure. During the Convention, there was heated debate on the compensation of
NEB members. Salaries of members of the NEB as of December 2005 (published in the
June 2006 NARFE magazine):
       - National President : $96,158
       - National Vice President: $89,773
       - National Secretary: $86,091
       - National Treasurer: $79,435
       - National Field Vice Presidents: $21,357 each for 10 Regions
In addition, travel expenses and some other expenses are reimbursed.
11. Pre-Convention Trip. The VFC sponsored pre-convention trip to Santa Fe and Durango was
enjoyed by 14 NARFE members and guests, including the VFC President and spouse. VFC Travel
Coordinator Jann Masterson did a great job of coordinating the arrangements with Collette for
the trip. Highlights included a tube raft ride down a calmer part of the Rio Grande River with Native
American guides and a stop along the riverbank for lunch prepared by them; a cooking lesson with
dinner prepared by well known Chef Enrique Guerrero at the Santa Fe Cooking School; a visit to
Four Corners Trading Post (where Utah, Arizona, Colorado, and NM meet); a visit to Taos Pueblo,
a five-story pueblo community that has been continuously inhabited by descendants of the same tribe
of Native Americans for over one thousand years; tour and hike in Mesa Verde National Park in
celebration of 100 years; and a stay at the lovely Victorian Strater Hotel in downtown Durango, CO.
Also, some NARFE members went for a hot-air balloon ride on Saturday morning. And, along with
all of that fun, the VFC earned a rebate of $1,100 (non-dues revenue). Jann is already coordinating
the next VFC sponsored trip for October 2007 trip to England, Scotland, and Wales that was approved
in July by the VFC Board. She will be posting information soon on her new travel web page on the
VFC web site, www.vanarfe.org. Check it out and plan to join us in October 2007!
12. Look for more details about the 2006 NARFE National Convention in an upcoming issue of the
NARFE magazine.
13. Future NARFE National Convention sites:
       2008   Louisville, Kentucky
       2010 Grand Rapids, Michigan

NARFE - YOUR FUTURE - OUR FOCUS

This is the NARFE - YOUR FUTURE - flects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). NARFEN Opinions and/or positions that appear on any other site bearing NARFE's name, or seal are not necessarily those of NARFE.

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
***

Due to the Memorial Day Recess, the next Hotline is set for Friday, June 9th.

This NARFE Legislative Update, number 549, released Friday, May 26th, leads with NARFE reaction to a specific OPM proposal impacting the Federal Employees Health Benefits Program and reports progress from efforts to persuade Members of Congress to support NARFE issues.

NARFE President Charles L. Fallis restated NARFE’s unalterable opposition to a proposal sent to Congress this week by the Office of Personnel Management (OPM) for legislation to allow Blue Cross/Blue Shield (BC/BS) to offer Health Savings Accounts (HSA) coupled with a high deductible health plan in the Federal Employees Health Benefits Program (FEHBP).

President Fallis urges NARFE members to seek out Members of Congress at Memorial Day parades and other recess events (May 26th through Sunday June 2nd) to amplify NARFE’s position. Since 1995 NARFE has testified that these controversial plans are a bad deal for federal employees and retirees of any age who have moderate-to-high health care costs or who are living from paycheck-to-paycheck and cannot afford to pay a high deductible or adequately fund a health savings account. 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 urges Congress to oppose any plan to further expand HSAs in the FEHBP, including the latest legislative proposal OPM has forwarded to them.

NARFE activists have persuaded five additional Representatives to cosponsor Premium Conversion legislation, H.R. 994, bringing the total to 330. By the end of the 108th Congress (2003-2004), 342 Representatives had cosponsored Premium Conversion legislation. Twenty nine of these previous NARFE champions are now "lapsed" cosponsors. They are listed in the July NARFE magazine, page 19, (and listed on www.narfe.org at http://www.narfe.org/leg/articles.cfm?ID=634). (The newest cosponsors are: Gohmert (TX-1), Hart (PA-4), Meehan (MA-5), Rogers (KY-5) and Watson (CA-33). For a complete list of cosponsors, by date, use http://thomas.loc.gov/cgi-bin/bdquery/z?d109:HR00994:@@@N and for a state by state list, use http://capwiz.com/narfe/issues/bills/?bill=7148181&cs_party=all&cs_status=all&cs_state=ALL ).

NARFE members have recruited a record number of Senate cosponsors, 61, for Premium Conversion legislation, S. 484. Two Senators are "lapsed" cosponsors. They are Idaho’s Sen. Crapo and Pennsylvania’s Sen. Specter. In 13 states where both Senators are members of the same political party, one Senator is a Premium Conversion cosponsor and the other is not. NARFE staff contacted the cosponsoring Senate offices in each of these 13 states asking for inside help getting the other Senator to cosponsor. Now, coordinated, grassroot pressure in the following states is crucial to recruiting these missing Senators: Alabama: Sessions; Alaska: Stevens; California: Feinstein; Delaware: Carper; Idaho: Crapo; Illinois: Obama; Kentucky: McConnell; Massachusetts: Kennedy; Mississippi: Lott; North Dakota: Conrad; Ohio: Voinovich; South Carolina: DeMint; and Utah: Bennett. (To use NARFE’s Legislative Action Center to send an e-mail or printed text go to http://capwiz.com/narfe/issues/alert/?alertid=8778486 )

There is no magic number of cosponsors that will move a bill through the legislative process. More is always better and a large and growing number is best! NARFE continues to make a toll free number available for NARFE member use to reach the Capitol switchboard. The toll free number is 1-866-220-0044. Callers can ask for their Representative or Senators by name.

Direct mail scams never end. NARFE members in Texas have been repeatedly solicited by a group calling itself "Benefit Security Coalition." NARFE members are urged to disregard these pleas entirely and NEVER provide their Social Security number to anyone who calls you.

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 for members on NARFE’s Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to 45,000 GEMS e-mail addresses. Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.

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 for members on NARFE’s Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to 45,000 GEMS e-mail addresses. Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.

www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to 45,000 GEMS e-mail addresses. Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.
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

***
CONVENTION HOTEL UPDATE
The Days Inn has been selected to be a NARFE Convention Hotel.

The Days Inn is offering a $44.95 single; $49.95 double rate; free breakfast, and 24 hour shuttling. The hotel is located 3 miles from the Convention Center.
They are located at:
2120 Menaul Blvd NE
; Albuquerque, New Mexico; phone number is 505 884 0250.

****
TO: NARFE’s National Executive Board, Federation Officers, and Chapter Officers,

At the 2002 National Convention in Greensboro, North Carolina, Delegates to the National Convention voted to have our 2006 National Convention in Albuquerque, New Mexico. Three hotels were selected to accommodate NARFE members. The Hyatt was selected as the Host hotel, the DoubleTree and the La Posada were selected as overflow, and all committee meetings, general session, exhibits, and the banquet would be located at the Albuquerque Convention center. All are within close proximity of each other, not a great deal of walking and no shuttling.

In March of 2006 NARFE was notified that the La Posada had filed for Bankruptcy Protection and had been sold. The new owners of the La Posada decided to renovate the hotel and informed all organizations contracted with the hotel that it would be closed and not hosting any Conventions for 2006 and part of 2007. This has left NARFE and about 15 other organizations in the lurch. NARFE had reserved a block of 100 rooms at the La Posada. In April we were notified that NARFE’s room block at the Hyatt had been filled, in May we were notified that the DoubleTree was full. We immediately contracted with the Quality Inn for an additional 50 rooms. We were informed yesterday that it is now full. We are in the process of locating another hotel that is near the Convention Center and willing to give our members a hotel rate that is lower or equal to what the Hyatt and DoubleTree hotels have offered. We ask your patience as we go through this process. We are trying to have one of the best Conventions ever in a wonderful city that is Celebrating its 300th Birthday. A lot of the Birthday activities will take place while we are having our National Convention.

NARFE values its members and we regret this situation has occurred. Once an additional hotel is chosen we will notify everyone. Thank you for your understanding and continuing to be an active member of NARFE

We look forward to seeing all of you in Albuquerque.

Juliet L. Harding, CMP

Director Marketing/Meeting Planning
NARFE
The deadline for submitting advertising and booster names for the National Convention Program Book has been extended to June 15, 2006.

Advertisers and supporters can opt to attach their ad or booster list to an email message to:
swilliamson67@comcast.net
Checks should be made payable to "NARFE National Convention 2006" and sent
to:
Mary Williamson, Treasurer
2707 Merz Rd., SW
Albuquerque, NM 87105-7227

Program book advertising inquiries should be directed to Al Provencio at provenal@msn.com

***
GEM Hotline Message
National Executive Board Meeting
Region X NFVP Summary

April 10, 2006
On Tuesday, April 4, 2006,
I participated in a Site Selection Committee meeting to determine which hotels were best suited for hosting the 2010 National Convention. We reduced the list from 32 to 10 which included the very best hotels at the very best prices available. The entire Board reduced the number to six hotels that will be considered by the delegates at the 2006 convention. Those in contention for the 2010 convention are:
            1. Adams Mark Hotel              Dallas Texas
            2. Adams Mark Hotel              Denver Colorado
            3. Amway Grand Hotel           Grand Rapids Michigan
            4. Hyatt                                    Kansas City Missouri
            5. Desert Palms Marriott         Palms Spring, California
            6. Nuggett                                Reno, Nevada
During the Course of our meeting we drew for banquet tables and for seating at the national convention at Albuquerque. I drew number 10, which was dead last for the banquet tables but we did not fare too badly. As for the convention itself, we will be in section C. The Host Region always gets the center section. Region X drew a section on the front next to the center. There are five sections of seating across and the regions are two deep.
See attached.
Wednesday, we began our assigned committee meetings. The reports were given to the full Board on Thursday, April 6, 2006. I have a few notes from the officer reports that I will discuss and then the committee reports to the full board will follow.
President Fallis reported his activity since the last Board meeting. I will not share his entire report, but there is one issue and one offer that you should be aware. First, due to the negative response from certain members, toward the policy of assisting NFVP with spousal commercial travel to the Board meetings, the authorization was resided. Two, President Fallis has received an interesting offer from a national federal credit union to become our official “NARFE” credit union. President Fallis appointed a committee to look into the advantages and disadvantages of such an arrangement. This is being considered because it has the potential of generating substantial non-dues revenue.
Each officer gave a report of their activity. Some of the RO’s activity will be reflected in their committee report. As for Region X, I was happy to report that we now have thirty-nine (39) of our forty two (42) Representatives and eight (8) of our ten (10) Senators co sponsoring and/or supporting portions of NARFE’s four major objectives. Thirty-four (34) Representatives and seven (7) Senators were visited during this period. Seventeen visits were with the Representative personally. MINUTES OF LEGISLATION COMMITTEE MEETING Wednesday, April 5, 2006
Committee Members Present: Vice President Dan C. Galvan, Chairman; Dick Thissen, Barry Rock.
Also Present: Judy Park, Director of Legislation; Toni Vallario, Recording Secretary.
I. The meeting was called to order at 9:00 am by Dr. Galvan.
II. Review of Status of NARFE Bills: Judy Park
1.     Current Cosponsorship:
S. 619 GPO/WEP Repeal -24
S. 484 Premium Conversion- 59
H.R. 994 Premium Conversion - 310
H.R. 147 GPO/WEP Repeal -314
2.     CARE will meet next week at NEA. Focus likely to be whether or not to negotiate a reform proposal.
3.     No imminent threat seen right now to FEHBP, but it could definitely be targeted in the future.
4.     NARFE contacts on Premium Conversion and GPO/WEP have definitely helped.
Specifically on Premium Conversion, since beginning of session 20 cosponsors have been added to H.R. 994 and 7 on S. 484.
5.     The parochial nature of our bills is a stumbling block. Need not only to continue to educate our NARFE members but also to educate members of Congress in the simplest terms as to what, exactly, Premium Conversion is.
III. Strategies to Protect our Earned Benefits:   Dick Thissen
   1. Must keep members working at scheduling meetings with congressional leaders and staff at local levels.
   2. Maintain personal element in contacts so recognition factor becomes an asset in approaching legislators about NARFE issues.
   3. Continue to work with NARFE Federation leaders to get regular feedback from chapters as to their progress with legislative contacts.
   4. Must balance the need to preserve the benefits we already have with the need to move our bills forward. Some of our difficulties are: diversity of NARFE members; parochial nature of our legislation; congressional members’ attitude that federal retirees already have “a good deal,” so why give them more; expense of implementing our legislation; short congressional session – 98 days.
   5. We have the best chance right now, with 60 sponsors, of getting some movement in the Senate on Premium Conversion.
IV. Response to Conference Call to NFVPs, Federation Presidents
      and Federation Legislative Officers:   Dan C. Galvan
   1. Legislative Action conference calls of Feb. 28-March 3, 2006 had a positive impact as a communications tool. Federation officers appreciated being included and having the opportunity of give and take with HQ officers and legislative staff.
   2. A total of 101 persons participated: 10 NFVPs, 47 Federation Presidents, and 44 Federation Legislative Officers or their designated representatives.
   3. Legislation Committee feels the cost of these teleconferences is not prohibitive and worth repeating several times a year as needed.
V. NFVPs’ Responsibilities for Legislative Work: Barry Rock.
1. We need to build on what we’ve done. Continue pushing for increased contacts
by our members.
   2. NFVPs need to create a simple method of collecting information from chapters on a monthly basis to identify problems in their districts which may be hindering
legislators from cosponsoring our bills. This information is to be transmitted
to the Federations from the chapters, from the Federations to the National Field Vice Presidents, and from the NFVPs to the National Vice President.
   3. It was noted during the discussion that the ability for state legislative officers to
communicate with each other and exchange information will be available on the
new NARFE Web site, which is now under construction.
VI. NARFE Strategies for Future Adverse Legislation: Judy Park
1.     Judy Park reported that although there is not a major threat on the immediate
horizon, we still need to keep watching closely and be ready to communicate
to our membership ASAP if something unexpected should arise.
VII. Review of Strategic Plan – Legislation Section: Dan C. Galvan
        The Legislation Committee reviewed and updated the legislation portion of the
Strategic Plan (see attached).
(The meeting was adjourned at 2:30 p.m.) Minutes of the National Membership, Public Relations and Retirement Benefits Services Committee
April 5, 2006
Members Present:     David F. Sullivan, National Secretary & Chairman
                                    Lanny Ross, Region IX, NFVP
                                    Forney Lundy, Region VIII, NFVP
                                    Dick Strombotne, Maryland Federation President, representing
                                    Robert Reynolds, Region II, NFVP
Staff Advisors: John Clements, Director, Membership Development
                                    Chuck Timanus, Director, PR
                                    Christina Robinson, Membership Marketing Program Mgr
                                    Karen Fennell, Manager, Chapter & Federation Development
Chairman Sullivan called the meeting to order at 8:00 am. All members were present. These minutes follow the agenda as presented.    1. Review of NARFE Membership Plan, 2006. John Clements announced that NARFE had recruited almost 4,000 new members in the first 2 months of CY 2006. At the same time, approximately 4,500 members were dropped for non-payment along with 1700 reported deaths. The good news is that those dropped for non-payment was considerably less than in the same time period for CY 2005.
John Clements mentioned the following programs:
     1. Lapsed Member Mailing. Some 29,000 lapsed members were targeted and over 1500 rejoined as new members – a 5.2% return. We are planning to do a second mailing to this group in May.
    2. League of Postmaster Mailing. We had reached an agreement to do a joint mailing to current & retired postmasters who belong to the League. We will be mailing to approx 17,000 in mid-May.
    3. AFGE Initiative. Despite a promising start, AFGE has not continued a dialogue with us to develop joint membership project. It appears that they do view us a competitor in the membership arena.
   2. Review of NEB Action Items from last NEB. Actions were reviewed and approved by the Committee.
   3. Review of the Fall 2005 OPM mailing. We mailed 64,000 packages and we got a 9.2% return. Much better than the Spring OPM mailing.
   4. Review of the Spring 2006 OPM mailing. We went back to the one year/two year option. One year - $29.00, two years - $49.00. Some 51,000 packages mailed and results will not be known for another 4 weeks.
   5. Discussion, Advocacy Inc. project. Test program for e-mail outreach directed at recruiting previous identified potential members. We sent a survey to 5757 potential members who had provided us their emails in CY 2005. Initial results:
         1. 2254 opened it (39%)
         2. 1343 clicked on the link for the survey (23%
         3. 922 responded to the survey (16%)
We are communicating with these respondents via emails and encouraging them to join NARFE via our website.
   6. Review/update, NARFE Advertising Plan. Chuck Timanus briefed the committee on the advertising plan. In CY 2005, we received nearly 90 requests for Matching Funds, amounting to $32,284. The attached report list by Region, lists Matching Funds activities, since January 1, 2006. The plan also calls for spending approximately $450,000 in advertising endeavors for 2006. A summary of NARFE advertising projects are also listed in the attachment.
   7. Recruiting Video. The two most current videos are somewhat dated and a shorter, more “sophisticated” video may be needed. Cost will be approximately $10,000 and was not budgeted in the PR Department 2006 Budget. Action. Committee feels that a new video is necessary and supports the move to budget for a new recruiting video to be budgeted and produced in CY 2007.
   8. Review/update of the Model Chapter Program. Karen Fennell briefed on the program. Attached is a report on the feedback. Report is somewhat discouraging since only 71 chapters responded. However, all of them responded to every one of the four major topics discussed in our Symposiums.
         1. Chapter Activities received the largest number of ideas, followed by,
         2. Recruitment & Retention. Most of the responses centered on recruitment, followed by,
         3. Communications/PR, followed by,
         4. Leadership
Action. NFVP encourage their Federations whose chapters attended Symposiums/Workshops to respond to National’s request to report actions taken as a result of their training.
Next step is to call on chapters including those who did not forward plans to the National office and encourage them to report actions taken with any results to date. We will be mailing this request in early May with a deadline date of July 1, 2006.
Action. NFVP encourage their Federations to encourage their chapters who attended to respond to this request.
   9. Review/update of the Developing Leaders Task Force. See National Secretary’s Report tab I, Summary with attachments.
Action. That the NEB approve the Task Force’s recommendations. Specifically:
·       First Year Tasks
·       Implementation – following NEB approval of Task Force’s recommendations, items 1-6
10. Discussion – proposed motion, Standing Rules of NARFE (Results of the Special Bylaws Committee Review). The Committee was not in favor of the existing language in the proposed resolution. It recommended that in the “Be it resolved section that the following words be deleted “…..aegis or …” and continue on …”influence with it’s ….”
In addition the Committee recommends that the standing rules motion be phrased as an amendment to the existing bylaws. The rewritten motion should list the portions that we deem critical to member recruiting, member assignment, first-year fee distribution, managing the Association and member voting. Here is an example:
Be it resolved: That the following portions shall be moved from the Bylaws to a Standing Rules of NARFE that would be printed in a separate section of the FH-4 NARFE Bylaws booklet.
A.    Article 1 Section 3 paragraphs A, B and C, and section 5 paragraphs B, C and D.
B.     Article III Section 2 paragraph B 11
C.    Article IV Section 3 paragraphs B and C
D.    Article V section 3 paragraph A
E.     Article VI section A and B, and section 4 in its entirety (Note: The Committee’s report was accepted with the removal of item 10 for later discussion) 11. Review – Membership portion of the NARFE Five-Year Strategic Plan, February 2005. Committee recommended that we delay any revised objectives until we know the results of various bylaws resolutions to be decided at the 2006 National Convention. Once that happens, we can develop a revised strategic plan that list achievable goals/objectives.
12. Discussion – Welcome letter to new chapter officers. Committee directed the staff to develop a form letter to be provided to newly elected Chapter officers (President/Secretary/Treasurer) and select appointed officers (Membership/Service) congratulating them on their new office and providing them a list of NARFE publications that are available to help them. A form F-18 will also be provided.
13. New training manual for NARFE officers. Not discussed.
14. Discussion – individual recognition for members, consider the slogan “Stop the Drops.” Not discussed.
15. Timing of the submission of the F-7 and the print date of the January M-111. Not discussed.
16. & 17. Discussion – how to address members who have moved to other locations and have changed their chapter of assignment. The Committee directed the staff to investigate the design of a change of chapter form and the placement of that form in the NARFE magazine and the web site. The form would encourage members to contact NARFE’s Member Records to change their chapter of assignment. Also consider establishing a monthly report which would list all dropped members who live in a state other than the state of their assigned chapter. That report would be provided to the Federation Presidents (of the state that the lapsed members are living in) who could then contact them or the local chapter to get them to renew their membership
18, Discussion – can we substitute report names vs. report numbers (M-112). Committee encouraged the staff and others to use the titles of NARFE reports along with the numeric designation. Meeting concluded at 2:25 pm, April 5, 2006.
David F. Sullivan
National Secretary
A.    REPORT TO:                  NEB MEMBERSHIP, PUBLIC RELATIONS & RETIREMENT BENEFITS SERVICES COMMITTEE
FROM:            CHUCK TIMANUS, PR DIRECTOR
DATE:             APRIL 5, 2006
RE:                   PUBLIC RELATIONS DEPARTMENT REPORT MATCHING FUNDS – 2005             As we do at the first NEB meeting of the year, we are providing the Committee with a summary of Matching Funds requests from chapters and federations that were approved during 2005. In 2005, we received nearly 90 requests for Matching Funds, amounting to $32,284. We requested information from each chapter and federation that received Matching Funds as to how the funds were used, and the result. Where provided, an “after action” report is part of this report. ADVERTISING At the last meeting of 2005, the NEB approved a budget of $450,000 for advertising endeavors for 2006. Here is a summary of our NARFE advertising projects thus far:
WGMS OnLine: 12-month contract     Visual/Audio Ad           Alternating months
FederalNewsRadio.com: 12-month contract    Banner ad on Mike Causey Column
NewsChannel 8: 12-month contract     :30 ad on daily Federal News program
TravelHost Magazine: Three, four-color, full-page ads (Mar, Apr, Sep)
WMAL Radio: 50-week contract         100 :60 spots/week      midnight-6am
WTEM Radio: Event ads 54 :30 ads on Redskin Playoff Pre and Post-Game and Coach Gibbs Show
YellowBook USA: Bold line and stand alone ads in YellowBooks in DC Metro area
Government Executive Magazine: Three, four-color, full-page ads (Apr, Jul, Oct)
GovernmentExecutive.com: Banner ads
WMET Radio: Two :30 ads in DC United soccer broadcast plus 20 spots/week for 32 weeks
WTOPNews.com: Big Banner on-line (Jul 10-Dec 31)
WTWP Radio: Sponsorship of National Anthem on 81 Washington National Baseball broadcasts, plus 24 :30 ads during the season
           Also, we are also contracted to do ads on MetroTraffic in six markets around the nation, with some federation participation.
RECRUITING VIDEO
           Any decision on a new “video” for chapters to use for recruiting should be explored by this Committee. Some have commented that the recruiting videos produced by the Ag Extension Department at Mississippi State University (the so-called “Alabama Video”) are outdated, but chapters continue to order them.
            A shorter, more “sophisticated” video may be needed, but cost will be in the neighborhood of $10,000 and was not budgeted in the PR Department 2006 Budget. The Report of the Strategic Planning and Operations Committee Conference Room – National Headquarters
April 5, 2006
Committee Members Present:
            NFVP Robert Harrell, Chair
            NFVP Tom Johnson, member
            NFVP Jerry Hatfield, member
Staff: Wil Speer, Director, Operations and Advisor to Committee
            Towanda Franklin, Administrative Support
            National President Charles Fallis, Ex Officio
NFVP Robert Harrell, Chairman called the meeting to order at 9:05am 1. Discussion on the proposed Strategic Planning Committee Meeting for spring of 2007 The committee discussed the planning of the upcoming Strategic Planning meeting in 2007 to establish a location, time and place for the meeting. The Strategic Planning Committee agreed that the board should review the current plan and update with staff to incorporate ideas from the 2000 and 2005 plan in a 1 or 2 day session. This time should be determined by the Resident Officers as necessary to add before or after the Executive Board meeting. The committee discussed that it would be more cost effective to have the meeting in the headquarters area than in another location due to travel for staff and the cost of travel for the facilitator to attend the meeting.
The committee recommendation to the board is that the location of the Strategic Planning Committee meeting in 2007 be determined in conjunction with board meeting and not the Legislative Conference. 2. Non-renewal Problems Committee discussed that when it comes to training and organization planning some the officers in the field are at a standstill and as a follow up to the symposium held last year, training guidelines for chapter management development for officers should be developed.
The committee was informed by Wil that this information is currently on the web site.
The committee recommendation to the board is that the current information in the Federation and Chapter development section be indexed for easy access by people willing to used it on the web site.
The problems with the closing and consolidation of chapter were discussed with the committee and a national guideline on procedures should be developed.
The committee recommendation to the board is to have the F-10 updated to include guidelines for Federations on the closing or consolidations of chapters. 3. Controversial Resolutions The committee discussed the controversial resolutions regarding MCM, Single Dues and One Member-One Vote and feel that everybody needs to familiarize themselves with and that when they send their resolutions to national with the understanding of what those resolutions and the impact of those resolutions could have one or the other. Any one of these resolutions will impact NARFE and determine the future NARFE. The chairman will mention to the board that we want to make sure that these issues are brought to the attention of membership thru our chapters, where they will have an educated vote at the convention.
4. Communication NFVP Harrell feels we still don’t have the communication this organization needs from the top to the bottom or the bottom up. We need to find a way to communicate better, even within our board with national headquarters. We need some information going to the field on what we are doing in Washington on a regular basis. We also need to let them know what we are doing on a defensive side more than the offensive side. The committee recommendations to the board to improve communications are as follows:              1. Monthly teleconferences within board members and various departments, with exception of board meeting months.
             2. Departments within organization do a better job of distributing information to the field
thru electronic communications with copy to board member and federation president this information will impact.
             3. Communication is an exchange of ideas from all parties concerned.

Committee adjourned at 11:20am
Respectively submitted,
Robert Harrell, Chairman
Strategic Planning and Operation Committee

***

The next Hotline is scheduled for Friday, February 24th.

This NARFE Legislative Update, number 537, released Friday, February 17th, provides a snapshot of what is happening in Congress and how NARFE members can protect their interests.

Premium Conversion legislation, H.R. 994 and S. 484, has 302 House and 54 Senate cosponsors. NARFE members recruited eight new House cosponsors on Feb. 16th. By state they are: California’s Berman, Colorado’s Musgrave; Indiana’s Chocola; Michigan’s Conyers; New York’s Towns and Lowey; Pennsylvania’s English and Texas’ Sam Johnson. Just seven Senators in five states are in the “lapsed” category. These states and the Senators are: Connecticut, both Lieberman and Dodd; Idaho, Crapo; Kansas, Roberts; New York, both Clinton and Schumer; and Pennsylvania, Specter. (A complete list of the lapsed showing the date during the 108th Congress the Member cosponsored is located at http://www.narfe.org/leg/articles.cfm?ID=634 )

On February 15th, NARFE President Charles Fallis wrote each Premium Conversion cosponsor who serves on Senate Finance or House Ways and Means, the Committees with jurisdiction for Premium Conversion. Fallis thanked them and urged these 9 Senate and 27 House tax writers to “use your influence on the panel to incorporate Premium Conversion into any legislation designed to create tax incentives for greater health care fairness and efficiency.”

On February 9, the Senate approved legislation to overhaul the business model of the U.S. Postal Service. Passage by voice vote sets the stage for a House-Senate conference committee. Both measures would provide greater rate setting flexibility and relieve USPS of large pension liabilities. The House had passed H.R. 22 on July 26, 2005 by vote of 410-20.
(More information at http://thomas.loc.gov/cgi-bin/bdquery/z?d109:s00662: ).

As reported on the Feb. 7 Hotline, the President’s fiscal year (FY) 2007 budget would reduce spending in the Federal Employees Health Benefits Program (FEHBP) by $3.4 billion over ten years, but does not include proposals to reduce current or future federal civil service annuities.

The cost savings appear to be related to the Administration’s plan to “...identify options for increasing price competition among the health plans offered to federal employees and retirees...” According to the President’s Office of Management and Budget (OMB), the cryptic proposal means that the Administration will recommend legislation that would allow Blue Cross/Blue Shield to offer Health Savings Accounts (HSAs) in the FEHBP. (For the full context go to the bottom of page 1081 of the Budget Appendix, which is the 3rd page of a12 page .pdf located at: http://www.gpoaccess.gov/usbudget/fy07/pdf/appendix/opm.pdf )

NARFE has historically opposed the controversial plans because relatively healthy enrollees with higher incomes could be siphoned off into HSAs, causing premiums for comprehensive plans to increase. Such concerns were confirmed by a recent report of the nonpartisan Government Accountability Office (GAO), which found that the average age of FEHBP HSAs enrollees was 46, compared to age 59 for all other enrollees in 2005. Moreover, 43 percent of actively employed HSA enrollees earned salaries of $75,000 or more a year, compared to 23 percent of all program enrollees. (An abstract is available at http://www.gao.gov/docsearch/abstract.php?rptno=GAO-06-271)

In addition, the budget reiterates a plan from previous years to "work with stakeholders to better coordinate the Medicare and the FEHB programs and follow best practices from the private-sector to ensure high quality, cost-conscious choices for retirees." NARFE continues to be concerned that this language means there is interest in creating separately rated health plans for Medicare-participating retirees and survivors and establishing incentives for retirees to join Health Maintenance Organizations (HMOs) and so-called ‘customer-driven’ options.

While concerns about the Administration’s budget proposals should be shared with lawmakers, NARFE members should save an all out grassroots response for March when instructions could be included in the House and Senate Budget Resolutions to cut federal retirement and health benefits by billions of dollars.

The next Hotline is scheduled for Tuesday, February 7th.

This NARFE Legislative Update, number 535, released Friday, February 3rd.
This edition urges member to focus on the fiscal 2007 budget set for release on February 6.

President Bush stressed foreign affairs and terrorism prevention in his State of the Union address. While the President did plug Health Savings Accounts, he devoted less attention to health care than had been expected.

Despite the efforts of hundreds of NARFE members and other groups, the House of Representatives narrowly passed the Conference Report on the spending reconciliation, S. 1932. This 216-214 vote (http://clerk.house.gov/evs/2006/roll004.xml) clears the bill for the White House. NARFE opposed the legislation because provisions in the bill will make it harder to qualify and receive Medicaid long-term care benefits. See page 10 in both the January (http://www.narfe.org/nm/guest/print.cfm?ID=663 ) and February (http://www.narfe.org/nm/guest/articles.cfm?ID=684) issues of NARFE.

The second of President Bush’s blockbusters opportunities to set the Congressional agenda is the February 6th release of the Administration’s Fiscal 2007 budget proposals. This Hotline will provide an update as soon as possible, quite likely on Tuesday, February 7th.

Working during December and January, NARFE members persuaded seven Representatives and two Senators to cosponsor NARFE priority bills. Premium Conversion legislation, S. 484 and H.R. 994, have 53 and 294 cosponsors respectively. Bills to entirely Repeal GPO and WEP, S. 619 and H.R. 147, have 23 and 305 cosponsors. (The URL for the 60 “lapsed” cosponsors of Premium Conversion is http://www.narfe.org/leg/articles.cfm?ID=634 > The URL for the 22 “lapsed” on GPO/WEP Repeal is http://www.narfe.org/leg/articles.cfm?ID=633)

Congressman John Boehner, who represents Ohio’s Eighth Congressional District, was elected by the Republican Conference to be the new Majority Leader. Ohio NARFE members in chapters 569, 325, 2170 and 2238 should congratulate their Representative. Leader Boehner’s district offices are located in West Chester and Troy, Ohio. (The first round vote totals: Blunt (MO-7) 110, Boehner 79, Shadegg (AZ-3) 40 and Ryun (KS-2) 2. The second round totals were Boehner 122, Blunt 109.)

As the curtain went down on Alan Greenspan’ 18 year chairmanship of the Federal Reserve January 31st, the Federal Open Markets Committee voted to increase the federal funds rate by a quarter percent to 4.5 percent. The FOMC also signaled that a further rate increase is possible. March 28 is the next meeting.

The next Hotline is scheduled for Friday, February 3rd.
This NARFE Legislative Update, number 534, released Friday, January 27th urges member action concerning an upcoming vote in the House on spending reconciliation. (394 words; 2:45)

Before adjourning for the year, Congress passed the final two appropriation bills, defense and health, human services and education. However, Senate changes to the Conference Report on the spending reconciliation bill (S. 1932) mean the House will have to vote another time. The vote could occur anytime after January 31st. To date, very few NARFE members have sent a traceable e-mail. The good news is NARFE members still have time to join other senior and health care organization members in contacting their own Representative and urging a NO vote because provisions in the bill would make it harder to qualify and receive Medicaid long-term care benefits. See page 10 in both the January (http://www.narfe.org/nm/guest/print.cfm?ID=663 ) and February issues of NARFE, then use the NARFE toll-free number (1-866-220-0044) to reach the Capital switchboard. Ask for your Representative by name (or give your ZIP Code). (The Legislative Action Center option on the NARFE web site, www.narfe.org, has a ready to use text. The URL is http://capwiz.com/narfe/issues/alert/?alertid=8339016&type=CO )

Five other “must read” items appear in the February magazine: 1st) page 12 has “Congressional ‘Recess” Schedule for 2006” 2nd) page 14 has “Lobby Week” 3rd) page 16 has “Election 2006” 4th) page 20 has “White House Aging Forum” and 5th) page 22 has Lapsed Cosponsors. (Premium Conversion “lapsed” posted at http://www.narfe.org/leg/print.cfm?ID=634 and the “lapsed” for Repeal GPO & WEP at http://www.narfe.org/leg/print.cfm?ID=633 )

President Bush has two blockbusters opportunities to set the Congressional agenda. At 9 pm Eastern Time on January 31st the President will address a joint session of Congress, the Cabinet save one, and the American people to deliver his State of the Union speech. Together with the Administration’s Fiscal Year 2007 Budget (to be released Monday, February 6), the President will seek to control the agenda of the second session of the 109th Congress.

The next Hotline is scheduled for Friday, January 27th. (539 words; 4:05)
This NARFE Legislative Update, number 533, released Wednesday, January 18th announces the December 2005 CPI-W, and urges member action concerning an upcoming vote in the House on spending reconciliation.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) dropped 0.5 percent in December 2005. Released by the Bureau of Labor Statistics (BLS).on January 18th, the CPI-W for December was 192.5. For purposes of calculating the next cost-of-living adjustment (COLA), the index is now 0.1 percent lower than the 2005 third quarter average base index of 192.7. Lest anyone fear a possible decrease in their current annuity as the result of a negative COLA, let it be pointed out that the law does not provide a reduction in benefits in the event of deflation over the fiscal year measuring period.

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 suffering work-related injuries or illnesses. FECA benefits are adjusted according to each calendar year’s percentage change in the CPI-W. The next adjustment will be effective March 1, 2006 and reflected in April payments. December’s index of 192.5 is 3.5 percent higher than the December 2004 base of 186.0. (January consumer price indices will be reported on February 22.)

President Bush has two blockbusters opportunities to set the Congressional agenda. On January 31st the President will address a joint session of Congress, the Cabinet save one, and the American people to deliver his State of the Union speech. Together with the Administration’s Fiscal Year 2007 Budget (to be released Monday, February 6), the President will seek to control the agenda of the second session of the 109th Congress.

NARFE Legislative Update Friday Dec 16
This NARFE Legislative Update, number 532, released Friday, December 16th announces the November 2005 CPI-W, and provides a brief summary of the final days of the current first session of the 109th Congress. The next, and hopefully the last, Hotline for 2005, is scheduled for Friday, December 23rd.

Taking the deepest single month dive in over half a century, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) tumbled 0.9 percent in November 2005. Released by the Bureau of Labor Statistics (BLS).on December 15th, the CPI-W for November was 193.4. For purposes of calculating the next cost-of-living adjustment (COLA), the index is now 0.4 percent higher than the 2005 third quarter average base index of 192.7.

Benefits awarded under the Federal Employees Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W. With one month to go, the November 2005 index is 4.0 percent higher than the December 2004 base of 186.0.

Millions of retired Americans receiving federal civilian and military retirement, as well as social security, will receive a cost-of-living adjustment (COLA) in their January 2006 retirement checks. CSRS retirees and social security recipients will receive a 4.1 percent adjustment, and FERS retirees over 62 will receive a 3.1 percent COLA. Federal workers and active duty military personnel also are assured of pay increases of 3.1 percent in the new year. The locality pay formula may give employees in certain locales a slightly higher 2006 raise.

Holiday camaraderie failed to overtake the U. S. Congress the week of December 12th, as leaders on both sides of the Capitol and both sides of the partisan aisle made only slight progress in their push to complete appropriations, and found little to agree upon in seeking separate tax and spending reconciliation measures (H.R. 4297/S. 2020 and H.R. 4241/S. 1932 respectively). Pressure from families and travel commitments have members of Congress pushing to complete work on funding measures, and adjourn for the year. Federal programs and agencies covered by unfinished appropriation measures are operating under a “Continuing Resolution” (CR) that is effective through Saturday, December 17. It remains to be seen whether a third CR, extending into the new year, will be necessary. None of the measures scheduled for action before adjournment have any direct affect on federal worker or retiree benefits.

The officers and staff of the national office join in thanking all of you for your interest and support in the past, and extend our wishes for health, happy holidays to you and yours.

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 for members on NARFE’s Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to GEMS e-mail addresses. Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.
***

This NARFE Legislative Update, number 531,
was released Friday, December 9th.
The first scheduled Hotline of 2006 will be Wednesday, January 18, 2006.
This Hotline sets the scene for what may be the final six days of the current session of Congress. A reminder about the final days of the FEHBP Open Season is included. The next, and perhaps last Hotline for 2005, scheduled for Friday, December 16th, will report November consumer price news. (611 words; 4:15)

A strange week during which only the House was in session has set the stage for what may be the last six legislative days of 2005. Two large appropriation bills, the Defense Appropriation (H.R. 2863) and Labor, Health & Human Services and Education Appropriation (H.R. 3010), must be finished. Separate tax and spending reconciliation measures (H.R. 4297/S. 2020 and H.R. 4241/S. 1932 respectively) are also on the agenda. Government programs and agencies covered by the unfinished appropriation measures, are operating under a “Continuing Resolution” that expires at the end of Saturday, December 17. Due to the considerable strife between the parties, chambers and branches no one can be certain what will happen.

If, by next Friday, a path to legislative accord is found, a final Hotline will report that news providing details about any impact on NARFE members. The first scheduled Hotline of 2006 will be Wednesday, January 18, 2006, to report December consumer price news important to FECA beneficiaries. By then annuitants covered by the older CSRS retirement law will have received the 4.1 percent COLA in January payments. FERS covered annuitants age 62 or better, retired for the entire year, get a cost-of-living adjustment of 3.1 percent.

On November 30, President Bush signed into law H.R. 3058 (P.L. 109-115), the Transportation, Treasury, and Housing and Urban Development, the Judiciary, the District of Columbia, and Independent Agencies Appropriations Act for 2006. The bill included a 3.1 percent pay raise for civilian federal workers, retaining pay parity between the government’s civilian and military employees. Once locality pay rates are announced, civil service workers in different areas of the country will see the actual amount of their own 2006 pay hike.

November 16th provided some good news. On that date, a Ways and Means Committee panel heard testimony from Rep. Tom Davis (R-VA) sponsor of Premium Conversion legislation, H.R. 994, to allow federal retirees to pay for their share of health insurance premiums with pre-tax annuities. Davis’ testimony marked the first time that a Ways and Means subcommittee received testimony about this NARFE priority (see p. 14 in January NARFE). With 288 cosponsors (http://capwiz.com/narfe/issues/bills/?bill=7148181&cs_party=all&cs_status=C&cs_state=ALL), Premium Conversion legislation is 55 shy of its historic high. The Senate companion bill, S. 484, sponsored by Sen. John Warner (R-VA) now has 51 cosponsors.

(The NARFE web site, http://www.narfe.org, now offers a Priority Legislation comparison of cosponsors of priority legislation in the 108th Congress (2003-2004) and 109th Congress (2005-2006). From the home page, choose Legislation, scroll down to “Priority Legislation with Cosponsor Counts.” In the text there are links to the “Lapsed” cosponsors. The direct URLs are: http://www.narfe.org/leg/articles.cfm?ID=524 and http://www.narfe.org/leg/articles.cfm?ID=633 and http://www.narfe.org/leg/articles.cfm?ID=634 )

December 12 is the end of Open Season for the Federal Employees Health Benefits Program. The October, November and December issue of NARFE provided important information with rate information for the nationwide plans. Most enrollees remain with the same carrier but many should examine their options before it is too late.

***
This NARFE Legislative Update, number 530,
was released Friday, November 18th.
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 has a membership of nearly 400,000 men and women and represents the interests of nearly 2.3 million federal retirees, spouses.

The Labor Department (http://www.bls.gov/cpi ) reported October’s CPI-W is 195.2, an increase of 0.1 percent from September’s 195.0. October’s index is an increase of 1.3 percent from the 2005 third quarter average base index (192.7). For FECA beneficiaries (based on calendar year change in the CPI), October’s 195.2 is 4.9 percent higher than the December 2004 base of 186.0. The Federal Reserve’s Federal Open Market Committee (http://www.federalreserve.gov/fomc/ ) is expected to raise the short-term interest rate when it meets December 13.

At 1:45 AM on Friday, November 18th, the House narrowly (217-215) approved H.R. 4241, the fiscal year (FY) 2006 Budget Reconciliation bill, which included proposals opposed by NARFE, and other aging organizations, that would make it harder to qualify and receive Medicaid long term care benefits. Fortunately, the bill contained no cuts to federal retirement or health benefits.

H.R. 4241 would hurt seniors and disabled persons who play by the rules while having little effect on those who deliberately try to "game" the system. Delegates to several previous NARFE national conventions have included a position in the NARFE Legislative Program to preserve the current Medicaid eligibility asset test and rules. For more information on this issue, see "Medicaid Long Term Care Benefits Debated", pages 10 and 12, in the October 2005 NARFE magazine (or use the following link: http://www.narfe.org/nm/articles.cfm?ID=599 ).

Unlike the House bill, S. 1932, the Senate version of Budget Reconciliation legislation, passed on November 3rd, makes modest adjustments to Medicaid asset test provisions. The two bills now go to a House-Senate conference committee where differences between them will be reconciled into a final bill which is likely to be considered by both chambers in December. NARFE members are encouraged to tell their lawmakers to oppose cuts in the final Budget Reconciliation bill to Medicaid that would change nursing home transfer of assets rules (this URL allows you to print or e-mail a prepared text to your Congressional delegation http://capwiz.com/narfe/mail/oneclick_compose/?alertid=8257046).

Six weeks into the fiscal year 2006 the House and Senate passed a second “Continuing Resolution” to keep government programs and agencies operating. Once President Bush signs the Continuing Resolution, H.J. Res. 72 ( http://thomas.loc.gov/cgi-bin/query/z?c109:H.J.RES.72: ), there will be continuing funding for the many functions of federal government whose annual appropriations are covered by the five unfinished appropriation measures. This resolution provides funding through December 17, 2005.

November 16th provided some good news. On that date, a Ways and Means Committee panel heard testimony from Rep. Tom Davis (R-VA) sponsor of Premium Conversion legislation, H.R. 994, to allow federal retirees to pay for their share of health insurance premiums with pre-tax annuities. Davis’ testimony marked the first time that a Ways and Means subcommittee received testimony about this NARFE priority. With 283 cosponsors (http://capwiz.com/narfe/issues/bills/?bill=7148181&cs_party=all&cs_status=C&cs_state=ALL ), Premium Conversion legislation is sixty shy of its historic high.

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 for members on NARFE’s Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to 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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FOR RELEASE: October 31, 2005
FOR MORE INFORMATION: Judy Park and Dan Adcock
TELEPHONE: 703-838-7760

OPM MISSES HALLOWEEN DEADLINE TO APPLY FOR $1 BILLION PAYMENT THAT COULD HAVE LOWERED HEALTH PLAN COSTS

National Active and Retired Federal Employees Association (NARFE) President Charles L. Fallis said that his association was disappointed that the Office of Personnel Management (OPM) missed a Halloween deadline to apply for an employer subsidy available to all employers under the new Medicare prescription drug law – a move which he said contributed to the rise in Federal Employees Health Benefits Program (FEHBP) premium costs for both the government and participants.

“Federal workers and retirees today will have to pay frightfully more than they otherwise would have had to pay because, unlike other employer-sponsored plans, our program has not yet taken advantage of a Medicare payment that would help lower health care costs,” Fallis said. “OPM will leave $1 billion on the table for every year they do not apply for this payment. It is a little like not being allowed to go trick or treating on Halloween night when everyone else gets to go.”

According to Fallis, the 2003 Medicare law allows employers to receive subsidies of 28 percent of the cost per enrollee for drug coverage on the condition that their prescription drug benefit for Medicare-eligible retirees and survivors is at least as good as the new Medicare drug plan. Like most retiree plans, FEHBP drug coverage is more comprehensive than what Medicare will offer next year. NARFE spearheaded the effort that made the federal government, like other employers – including state and local government -- eligible for the subsidy.

Indeed, the California Public Employees' Retirement System (CalPERS), which provides health benefits to state and local government workers and retirees in the Golden State -- and is second only in enrollment size to the FEHBP -- applied for the employer payment.

“Other retirees will be ‘treated’ to lower premiums than they otherwise would have received because their employer applied for this subsidy, but by failing to seek this payment, the federal government has locked the door and turned out the porch light on Halloween night for their hard working souls,” Fallis said.

Payments to OPM, unlike other employers, would not result in new spending under federal budget rules, since they would not be spent outside the government. Moreover, the subsidy would enable OPM and participating insurance carriers to continue current coverage levels -- or even improve it -- while containing the amount the federal government, as an employer, and federal workers and annuitants pay for FEHBP premiums.

“While it is now too late for OPM to apply for this payment this year, it is our hope that they will act in the interest of federal workers and annuitants, who have dedicated, and continue to give, so much for our nation, by not passing up this cost saving opportunity next year,” Fallis said. “To act otherwise is almost too scary to imagine in a time of escalating health insurance premiums and cost shifting.”

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URGENTNARFE ACTION ALERT ONMEDICAID

During the next few weeks, Congress will focus on completing action on the federal budget.

Known as budget reconciliation, this process involves setting spending reductions for entitlement programs such as Medicare, Medicaid, Social Security, federal and military retirement. Currently, there are no plans in this legislation to cut federal civilian retirement. However, this fall’s budget reconciliation bill will attempt to reduce spending for health care for the elderly and disabled provided by Medicaid. One of the proposals is to make it harder for people to qualify for nursing home care under Medicaid by changing certain rules.

We urge you to contact your Representative and two Senators through a special toll free number at 1-800-426-8073 and ask them “to oppose cuts to the Medicaid budget that would change nursing home transfer of assets rules.” These changes will harm the elderly and disabled citizens who need this program the most.
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COLA

The next cost-of-living adjustment (COLA) for millions of retired and disabled Americans will be 4.1 percent. Social security beneficiaries, as well as most civil service annuitants, foreign service and military retirees will be among those receiving the adjustment in their January 2006 checks. Federal Employees Retirement System (FERS) annuitants age 62 and over, as well as FERS survivors and disability retirees, will receive a full Social Security COLA, but the adjustment in their FERS annuity will be 3.1 percent COLA. FERS retirees under age 62 receive no COLA.

Persons who are recently retired will receive lesser inflation adjustments, as one’s first COLA is pro-rated to cover only the months of the year during which the individual was actually retired. The COLA -- an annuity adjustment, not a pay raise -- is effective December 1, 2005 and will be reflected in January 2006 retirement payments. Last year’s COLA was 2.7 percent. The Bureau of Labor Statistics will release October consumer price indices on Wednesday, November 16th.

On October 14th, the Labor Department’s BLS (www.bls.gov/cpi or 202/691-6994) announced the September 2005 Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is 195.0. This index reading reflects an increase of 1.5 percent from the August index of 192.1. The annual federal retirement cost-of-living adjustment (COLA) is based on the percentage difference between the third quarter average index readings in two consecutive years. The next COLA of 4.1 percent reflects the percentage difference between last year’s third quarter average base index of 185.1 and this year’s 2005 third quarter ave rage index of 192.7. The 2006 COLA is the largest since the 1991 COLA (5.4%).

Annual COLAs in benefits paid to employees forced out of the labor market by work-related injuries or illnesses, under provisions of the Federal Employees Compensation Act (FECA), reflect the percentage change in the CPI-W during each calendar year. As of September, the index of 195.0 is 4.8 percent higher than the December 2004 index of 186.0. The final inflation data needed to determine next year’s FECA adjustment will be reported on Wednesday, January 18, 2006.

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 for members on NARFE’s Internet site, www.narfe.org, and broadcast to GEMS e-mail addresses (now over 41,000). This policy allows each registered e-mail addressee to choose to read each message, delete each or pick and choose. Each delivery device is a service of the NARFE, the National Active and Retired Federal Employees Association.

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 messaage, 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
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This NARFE Legislative Update, number 526,
was released October 21ST.

This edition provides the promised legislative snapshot of the 109th Congress. The next Hotline is scheduled for Friday, October 28th. (605 words; 4:58)

Three weeks into fiscal year 2006, already overdue end of year budget issues top the Congressional agenda. The House Republican leadership postponed a vote on amending the budget resolution (House Concurrent Resolution 95) to increase the cuts in mandatory spending from $34.7 to $50 billion. A House vote could still occur during the week of October 24th. Uncertainty is still the best description of how this fall’s budget process will play out. President Bush did sign the Homeland Security Appropriation bill (P.L. 109-90, the third of 12 appropriation bills to be enacted). However, there is still a possibility that an across-the-board reduction in discreti onary accounts will be considered. Currently, there are no firm plans to cut federal retirement benefits during this process.

As part of their effort to cut Medicaid by at least $10 billion, Congress is considering proposals to make it harder to qualify and receive Medicaid long term care benefits. Anyone who does not have long term care insurance -- because they cannot afford it or have been denied coverage because of a health condition -- or who cannot pay for long term care costs that exceed $50,000 a year – might need Medicaid one day. Present federal law provides individuals with some reasonable and legal means to transfer assets to family members – like giving a grandchild money to pay for college – without endangering their future Medicaid eligibility. Medicaid applicants still have to impoverish themselves to become eligible and they must devote most of their retirement income to pay for long term care . Delegates to several NARFE national conventions have included a position in the NARFE Legislative Program to preserve the current Medicaid eligibility asset test and rules. For more information on this issue, see “Medicaid Long Term Care Benefits Debated”, pages 10 and 12, in the October 2005 NARFE magazine (or use the following link: http://www.narfe.org/nm/articles.cfm?ID=599 ).

Several aging organizations, including NARFE, and disability groups, are urging their members to contact their Representative and two Senators through a special toll free number at 1-800-426-8073 and ask them “to oppose cuts to the Medicaid budget that would change nursing home transfer of assets rules.” We urge you to make this call as soon as possible.

There is some good news. Additional House cosponsors for both Premium Conversion and GPO/WEP Repeal are a direct result of NARFE inside-outside pressure. Rep. Tom Davis (R-VA) added a dozen cosponsors to H.R. 994 bringing the total to 276. Rep. Buck McKeon (R-CA) added three cosponsors to H.R. 147 bringing the total to 292. (To see a display of Priority Legislation go to http://www.narfe.org/leg/articles.cfm?ID=524 )

The next cost-of-living adjustment (COLA) for millions of retired and disabled Americans will be 4.1 percent. Social security beneficiaries, as well as most civil service annuitants, military retirees will be among those receiving the adjustment in their January 2006 checks. Federal Employees Retirement System (FERS) annuitants age 62 and over, as well as FERS survivors and disability retirees, will receive a full Social Security COLA, but the adjustment in their FERS annuity will be 3.1 percent. FERS retirees under age 62 receive no COLA.

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 for members on NARFE’s Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to 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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Contact: narfe2005wk at gmail dot com

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