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For Active and Retired Federal Employees

RETIREMENT LIFE DECEMBER 2010, Volume 86,Number 12

LEGISLATIVE REPORT

50 Questions &Answers

58 NARFENews

61 Out &About

66 For the Record: TSP Investments

DEPARTMENTS

8 $250 Payment Proposed in Lieu of COLA

12 Debt Panel Report Due December 1

14 FederalWorkers Overpaid? No!

16 Civics 101: Meet the Elect

NARFE ResourcesNARFE-PACCoupon . . . . . . . .16MembershipApplication . . . . . .49Alzheimer’s Coupon . . . . . . . . .61NARFEMember Perks . . . . . . .64

visit us online at www.narfe.org

24 Tough Pills to Swallow. Increases in premiumsand out-of-pocket expenses in the FederalEmployees Health Benefits Program, plus arise in Medicare Part B premiums, are toughpills to swallow in a year without acost-of-living increase for federal retirees.Here is the third and final installment ofNARFE’s authoritative Open Season Report.

COVER STORY

Cover design by Jim Richards

COLUMNS6 Message From the

National President

18 Managing Money

20 LiveWell

22 Alzheimer’s Update

56 Vice President’s Views

56 From the Secretary’sDesk

57 Treasurer’s Report

SPECIAL SECTION62 NARFE Scholarship

Winners

EditorMargaret M. Carter

Assistant EditorDonna J. St. John

Graphic DesignerBeth Bedard

Contributing DesignersCharlene GridleyJim Richards

Editorial Board:Joseph A. BeaudoinPaul H. CarewElaine HughesCharlesW. Saylor

Editorial OfficeNARFE, Attn:NARFEmagazine606 NorthWashington St.Alexandria, VA 22314-1914

Phone: 703-838-7760Fax: 703-838-7781E-mail: [email protected]

Advertising SalesWarren Berger

Media People Inc.122 East 42nd Street, Suite 725

New York, NY 10168212-779-7172, ext. 223

E-mail: [email protected]

National HeadquartersNARFE Telephones Open

8 a.m.-4:45 p.m. (ET) Monday-FridayTelephone: 703-838-7760

Fax: 703-838-7785E-mail: [email protected]

Toll-free phone numbers (specific use only)Member Records: 800-456-8410

Recruitment &Retention: 800-627-3394Legislative Hotline: 877-217-8234

Web site: www.narfe.org

The Association, since July 1970, has beenclassified by the IRS as a tax exempt labor or-ganization [not a union]; however, dues andgifts or contributions to the Association arenot deductible as charitable contributions forincome tax purposes.

NARFE for the Visually ImpairedOn the Telephone: This publication can beheard on the telephone by personswhohavetrouble seeing or reading the print edition.For more information, contact the NationalFederation of the Blind NFB-NEWSLINE®service at 866-504-7300 or go to www.nfbnewsline.org.

On Tape: Issues ofNARFEmagazine are alsoavailable on cassette through theNational Li-brary Service for the Blind and PhysicallyHandicapped. To find out about availabilityin your area, call 800-424-8567 and ask forthe Reference Section.

REGIONALVICEPRESIDENTS

NATIONALOFFICERSJOSEPHA. BEAUDOIN, President

[email protected]

PAULH. CAREW, Vice [email protected]

ELAINEHUGHES, [email protected]

CHARLESW. SAYLOR, [email protected]

Volume 86,Number 12.NARFE (ISSN 1948-4453) is published monthly by the National Active and Retired Fed-eral Employees Association (NARFE), 606 N.Washington St.,Alexandria,VA 22314. Periodicals postage paid atAlexandria,VA, and additional mailing offices.Members:Annual dues includes subscription. Non-member sub-scription rate $33.Postmaster:Send address change to: NARFE Attn:Member Records,NARFE 606 N.WashingtonSt.,Alexandria,VA 22314.To ensure prompt delivery,members should also forward changes of address withoutdelay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited picturesandmanuscripts,although every reasonable precaution is taken.All submissions become the property of NARFE.Contents of this magazine are copyrighted © 2010.Advertisements in the magazine are not endorsements ofproducts and/or services by NARFE, unless officially stated in the ad.We shall accept advertising on the samebasis as other reputable publications: that is,we shall not knowingly permit a dishonest advertisement to ap-pear in NARFE,but at the same time we will not undertake to guarantee the reliability of our advertisers.

REGION I GilbertW. Blaisdell(Connecticut, Maine, Massachusetts, NewHampshire, New York, Rhode Island andVermont)3 Larnards CourtAmesbury, MA 01913-3309Tel: 978-388-1830E-mail: [email protected]

REGION II Ronald P. Bowers(Delaware, District of Columbia, Maryland,New Jersey and Pennsylvania)404 Kilree Road, #301Timonium,MD 21093-7599Tel: 410-308-0420E-mail: [email protected]

REGION III Donald Stewart(Alabama, Florida, Georgia, Mississippi,Puerto Rico, South Carolina and VirginIslands)531 Sevilla Ave.Coral Gables, FL 33134-5714Tel: 305-442-6388E-mail: [email protected]

REGION IV Paul E. Johnson(Illinois, Indiana, Michigan, Ohio andWisconsin)P.O. Box 234, 7183Main St.Wadesville, IN 47638-0234Tel: 812-306-5137Fax: 812-673-4989E-mail: [email protected]

REGIONV RichardG. Thissen(Iowa, Kansas,Minnesota,Missouri,Nebraska, NorthDakota and SouthDakota)P. O. Box 485Lake Ozark, MO 65049-0485Tel: 573-365-5679Fax: 573-964-5074E-mail: [email protected]

REGIONVI Jerome S. Smith(Arkansas, Louisiana, Oklahoma,Republic of Panama and Texas)5900 Raleigh DriveTyler, TX 75703-5636Tel: 903-534-5849E-mail: [email protected]

REGIONVII Betty Lucero-Turner(Arizona, Colorado, NewMexico, Utah andWyoming)4437 Turnberry CrescentPueblo, CO 81001-1175Tel: 719-583-0910E-mail: [email protected]

REGIONVIII Helen L. Zajac(California, Guam, Hawaii, Nevadaand Republic of Philippines)106 Cottonwood DriveVallejo, CA 94591-5659Tel: 707-644-7565Fax: 707-644-5019E-mail: [email protected]

REGION IX LannyG. Ross(Alaska, Idaho, Montana, Oregon andWashington)7450 Illahee Road, NEBremerton,WA 98311-9431Tel: 360-692-9741Fax: 360-662-0384E-mail: [email protected]

REGIONX WilliamF.Martin(Kentucky, North Carolina, Tennessee,Virginia andWest Virginia)294 Tyler Point LaneBumpass, VA 23024-4633Tel: 540-872-3345Fax: 540-872-3445E-mail: [email protected]

4 DECEMBER 2010 | NARFE

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Most members know by now that dele-gates at the National Convention thissummer voted (with 72.5 percent in theaffirmative) to increase ournational dues from $29 to

$40. I believe that delegates correctly realizedthat NARFE needs the additional money inorder to continue fighting the battle to protectthe earnedbenefits of federal employees and re-tirees.I realize that somemembers may have diffi-

culty paying the dues increase because 2011will be the second year in a row that retireeswillnot receive a cost-of-living adjustment.Our Fed-eral Employees Health Benefits Program pre-miums also will increase an average of 7.3 per-cent. But letme suggest away to reduce the costof your dues while at the same time helpingNARFE Headquarters save money: Sign up fordues withholding.For those of youwhopayyour dues annually

(which will be $40 plus chapter dues after Jan-uary 1, 2011), signing up now for dues with-holding will save you $6. Your monthly costwith dueswithholdingwill be $2.83+ 1/12th ofyour chapter dues. For example, if your chapterdues are $10, the Office of Personnel Manage-mentwill deduct $3.66 permonth fromyour an-nuity. (Note: Active federal workers are not eli-gible for dues withholding.) Not only will yousave $6 a year when you sign up for dues with-holding, but NARFE also will save in mailing costs (by nothaving to mail you an annual statement) and processingfees. It’s a win-win proposition at a time when NARFE andourmembers are looking for ways to save.No matter the amount of your dues, NARFE is still the

best bargain around. If you, your spouse or survivor con-tinue to receive your annuity and health benefits for 20 ormore years, your retirement package could be worth hun-

dreds of thousands of dollars – certainlyworth the 11 centsper day in annual NARFE dues to support our efforts onyour behalf. We have been very successful during the past

two decades in protecting your benefits – theyhave not been reduced or eliminated. However,with the so-called Debt Commission looking atevery possibleway to reduce the deficit, it wouldnot surprise me if the commission includes oneormore proposals to reduce our earnedbenefitsin its report due by December 1.Now is the time to renew your membership

and recruit newmembers. The stronger we are,the more clout we have on Capitol Hill. We willcontinue to work with our coalition partners, aswell as look for other groups to partner with, topersuade Congress to leave our earned benefitsalone.I knowyouhaveheard this before frommany

sources, but Iwill state it again: There is strengthin numbers, and yourmembership is extremelyimportant at this time.Withmore than 300,000members, our voice is still strong. But we needall of you to renewyourmemberships so thatwecan remain strong. Please consider signingup fordues withholding in 2011. Save yourself, andNARFE, somemoney.As this issue ofNARFEmagazine is due to ar-

rive in late November, let me wish you a HappyThanksgiving, and a safe and happy holidayseason.Weall havea lot tobe thankful for and, asyourpresident, I appreciateall thatyouhavedone

forNARFE and forme personally during the past year.I’m looking forward to another great year in 2011

working with you and for you.

The Benefits of DuesWithholding

A Message From theNational President

DUESWITHHOLDING

is a win-winproposition at a

time whenNARFE and

our membersare looking forways to save.

Joseph A. [email protected]

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� A recent poll by TheWashington Post found that 52percent of Americans thinkmost federal governmentemployees are overpaid;9 per-cent think they are underpaid.

� TheWashington Post poll alsofound that,of those surveyed,only 35 percent said they hadcontact with an employee of afederal agency.However,threeout of four of those respon-dents said it was a positiveexperience.

� A recentWashingtonPost/Kaiser FamilyFoundation/Harvard pollfound that 82 percent ofrespondents believe that thefederal government had alot of or some impact on theirdaily life. Themajority of thatgroup felt that it was anegative impact.

LEGISLATIVE HOTLINEToll-free! (24 Hours):877-217-8234Legislative Action Center:www.narfe.org

PAYMENT IN LIEU OF COLAHouse Speaker Nancy Pelosi, D-CA,

announced October 14 that, whenCongress reconvenes for its lame-ducksession after the general election, theHouse will consider legislation thatwould provide a $250 payment to So-cial Security recipients, veterans andindividuals with disabilities (recipientsof disability insurance under Social Se-curity).

NARFE fears that more than onemillion federal, state and local govern-ment retirees who are not eligible to re-ceive Social Security may not receiveequivalent relief under the House leg-islation. For that reason, NARFE issuedan Action Alert on October 15 for allNARFE members – even individualswhoareSocial Security-eligible–urgingthem to contact their lawmakers andask them to provide relief to retiredpublic service employees equivalent tothe $250 payment that Social Securitybeneficiaries would receive.

For the latest information on thislegislation and NARFE’s Action Alert,access the NARFE Legislative Hotlinethrough the NARFE Web site atwww.narfe.org. You also can add youre-mail address to your membershiprecord by calling 800-456-8410 so youcan receive these updates automati-cally.

WHY THERE IS NO COLATo calculate COLAs, the Bureau of

Labor Statistics (BLS) measures the in-crease in the Consumer Price Index forUrban Wage Earners and ClericalWorkers (CPI-W) between the thirdquarter of one calendar year and thethird quarter of the next year. In 2008,oil and gas prices spiked, resulting in asignificant 5.8-percent increase, whichwas granted in January 2009. But withthe plunge in the economy, overallprices fell dramatically, and, to date, theprice level has not reached its 2008highof 215.5. Until the index surpasses

LEGISLATIVEREPORT

$250 Payment ProposedIn Lieu of COLA TellCongress:

Don’tLeaveFedsOut!F

or the second time since Social Security started granting

automatic cost-of-living adjustments (COLAs) in 1975, So-

cial Security recipients and federal civilian and military

annuitants will not receive an automatic COLA in 2011.

There was no automatic COLA in 2010 either, and, despite support

from President Obama for a flat $250 payment, Congress failed to enact

the request.

that figure, the law provides for no automatic COLA.For some federal annuitants living on fixed incomes, no

COLA means that there is no way to supplement the low re-turns from traditional senior investment vehicles, such asbonds and money market funds. Nor does it relieve the in-crease in health care costs, as average premiums for FederalEmployees Health Benefits Program plans go up more than7 percent.

SOME RETIREES PAY MEDICARE HIKEFor about 300,000 annuitants of the Civil Service Retire-

ment System, who are not eligible to receive Social Security,there is an added factor. As happened in 2010, MedicarePart B premiums rose again for 2011, and, for most of thosecovered by Social Security, there was no increase assessedto them. But for those federal, state and local governmentretirees not covered by Social Security, the Part B premiumincreases even more, as this group pays not only the sched-uled increase but also an extra amount to make up for thelack of payment by Social Security recipients.

In 2009, NARFE was a leader in identifying the inequityin the law and promoting legislation that would have madePart B the same for everyone. Although it passed the Housein September 2009, the Senate was unable to get the bill onthe floor for a vote. At press time, NARFE was working withfriendly lawmakers to protect public-service retirees whoare not eligible to receive Social Security from the 2011 PartB rate hike. Unfortunately, the earliest Congress could con-sider such a bill would be after the November general elec-tion. This creates a logistical hurdle for the Social SecurityAdministration, which would be hard-pressed to change itsprocessing systems in time so affected retirees would not bebilled for the Part B premium increase by January 2011. Thefight to move Medicare premium equity legislation was ex-pected to be difficult, given the reluctance of many legisla-tors to approve bills with a cost.

INFLATION INDEX FIX?Many ask, why not change the way cost-of-living in-

creases are measured and granted? One reason has alwaysbeen that it might lead to other changes in Social Securityand annuitant benefits. Without major changes in the So-cial Security system since 1983, Congress has been reluc-tant to make a change without looking into the overallhealth of the system. Now, however, with the bipartisan Na-tional Commission on Fiscal Responsibility and Reformlooking at all aspects of the budget and deficit reductions,the prospect of major tax and benefit changes is no longer

a distant possibility (see story, p. 12). As reported in the No-vember NARFE magazine, the commission is consideringthe merits of adjusting yearly benefits by the “chained CPI.”The chained CPI is similar to current law, with one excep-tion: It reflects economic behavior known as the substitu-tion effect. As some products become more expensive oras they change due to technology, consumers switch tocheaper or more efficient items. While some experts mayfeel that the current CPI method overstates the cost ofliving, NARFE’s legislative program states: “NARFE supports,and shall continue to evaluate, a CPI based on the objectiveanalyses of the Bureau of Labor Statistics professionals, andopposes anypolitically arbitrary changes to the CPI. The BLSshould establish a research program to develop an accuratemeasure for retirees.”

The chained CPI grows more slowly than the currentmeasure of CPI-W. A Congressional Budget Office analysisestimates that a Social Security benefit would be 3 percentlower after a 10-year period under the chained CPI meas-urement. Presumably, the chained CPI also would lowerfederal civilian and military retirement COLAs. One argu-ment against the chained CPI is that it may not reflect thetrue cost of living for the elderly.

NARFE will work with our partners in the LeadershipCouncil of Aging Organizations – a coalition of national not-for-profit organizations representing 60 million older Amer-icans – to ensure the fairest and most equitable method ofcalculating inflation protection for Social Security benefici-aries, and federal civilian and military retirees.

ByMargaret Hostetler, Assistant Legislative Director

LegislativeReport


STORYHIGHLIGHTS� AsNARFE has reported for severalmonths,federal andmilitary annuitants and Social Securitybeneficiaries will not receive a COLA in 2011.

� House SpeakerNancyPelosi has anounced thatCongresswill consider a bill to give a $250 paymentto Social Security recipients,veterans and indi-viduals receiving Social Security disability benefits.

� NARFE fears that federal civilian retireeswho arenot eligible for Social Securitywill not be covered inthis bill.It is askingNARFEmembers to contacttheirmembers ofCongress to get equivalent relief.

� NARFE also is trying to get a bill passed to exemptfederal retirees frompaying the 2011Medicare PartB increase.Social Security recipients do not pay theincrease in any year that they do not get aCOLA.

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The National Commission on Fiscal Responsi-bility and Reform, charged with producingpolicy recommendations that will reduce thedeficit and control the long-term growth in the

national debt, is soon expected to present its recommen-dations to President Obama. The executive order estab-lishing the commission requires the final report be voted onno later than December 1, 2010. As of press time in late Oc-tober, the recommendations have not been made public.

A vote of 14 of the 18 commission members is requiredto send an official recommendation to the president. How-ever, a smaller number of commission members can join to-gether to release recommendations or policy suggestions.

In an unusual twist for Washington, commission mem-bers have had little to say about possible recommendations.Here are several possible outcomes that NARFE is watching:

• Fourteen members of the commission agree on a singleset of recommendations that is forwarded to the president.Under an agreement with congressional leaders, the Houseand Senate hold an up-or-down vote on the recommenda-tions without making any amendments.

• Fourteen members of the commission agree on a singleset of recommendations that is forwarded to the president.However, Congress does not hold a vote on them.

• The president includes some or all of the recommen-dations made by the commission in the FY 2012 budget(presented on February 7, 2011). Even if there is no single setof recommendations, the president can propose policy sug-gestions made by a group of commission members.

• Members of Congress focus on some or all of the rec-ommendations made by the full commission or subgroupsof members. The 112th Congress (2011-2012) could holdhearings on the recommendations, attempt to pass themthrough the budget process and/or make other efforts topush the recommendations in the new Congress.

MAKING NARFE’S CASEIn June, then-NARFE President Margaret L. Baptiste tes-

tified before the commission on behalf of the Association,urging the commissioners to protect the compensation andretirement benefits of federal workers, retirees, their spousesand survivors. When discussing federal entitlement pro-grams, Baptiste said, “There is one significant difference:Civil service retirement and health benefits are earned byemployees, and designed to attract and retain a skilled work

force. They are not modeled on social insurance, health-based or means-tested.”

NARFE also took the lead on a joint letter from the fed-eral/postal coalition to the commission. “Contributionsearned or paid for entirely by federal and postal workershave kept their retirement systems solvent and sustainable.Given the soundness of the compensation and retirementsystems covering federal and postal workers and retirees, wecautionagainst reduction in their benefits.” The letter furtherstated that, during the1980sandearly1990s, the reductionsinbenefits fromthedelayor cancellationof cost-of-livingad-justments were done “without shared sacrifice by the rest ofthe American population. Doing so again would punish thecontributionofpublic servantsandsoundfinancial planning.”Eighteencoalitionmembers signedon to the letter, includingtheAmericanFederationofGovernmentEmployees,NationalTreasury Employees Union, National Association of LetterCarriers and American Postal Workers Union.

NARFE continues to stress that federal employees andannuitants are willing to make a shared sacrifice duringthese troubling economic times. However, NARFE also willcontinue to fight any proposals that put an unequal and in-accurate burden on the federal community.

WHAT YOU CAN DOThe NARFE Legislative Department has a Fiscal Com-

mission Watch Web page with updated information on thecommission’s proposals and how you can get involved. Itcan be found on the Legislative Department’s Home Pageon the NARFE Web site at www.narfe.org/legislation.

You also can get updated information from the NARFELegislative Hotline. Call 800-456-8410 and ask that youre-mail address be added to your member record or updateyour member record on the NARFE Web site.

By Sarah Holstine,Legislative Specialist


LegislativeReport

Debt Panel Report Due Dec. 1STORYHIGHLIGHTS

� TheNational Commission on Fiscal Responsibilityand Reformwill issue its report byDecember 1.

� Even if 14 of the 18members don’t agree onrecommendations to reduce the debt,the presidentormembers of Congress could act on suggestionsmade by subgroups of commissionmembers.

� NARFEurged the commission not to single out thebenefits of federal workers and retirees for cuts.

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In a spate of recent “think-tank” reports, newspaperstories, op-ed columns and even advertisements, fed-eral employees have been unfairly characterized asoverpaid compared to private-sector workers. John

Berry, director of the Office of Personnel Management(OPM), has labeled the allegations “unfair and untrue.”

“The wages we pay are fair, and the benefits we offerare good,” Berry said. “But working for the federal govern-ment is about more than money. People grow updreaming about working for NASA, or the CIA, or be-coming a park ranger, or cancer researcher. We should beapplauding these hardworking civil servants – not mis-characterizing them.”

Some of the often-reported claims that federal employeesare overpaid have come from Chris Edwards, director of taxpolicy studies for the Cato Institute, a Washington, DC, lib-ertarian think tank that advocates limited government. In aJune 2010 report titled “Overpaid Federal Workers,” Ed-wards alleges that “the average federal civilian worker nowearns twice as much in wages and benefits as the averageworker in the U.S. private sector.”

However, the truth is that federal employees are paid22 percent less than their private-sector counterparts, ac-cording to the 2009 “Annual Report of the President’s PayAgent,” which was issued last December.

The president’s “pay agent” is a board made up ofthe Secretary of Labor and the directors of OPM and theOffice of Management and Budget. Every year, this boardsubmits a report that, among other things, compares ratesof pay under the federal General Schedule to nonfederalpay.

To arrive at its comparison, the pay agent’s report hasused the same methodology for many years – through bothDemocratic and Republican administrations.

COMPARING APPLES TO APPLESThe pay agent’s report makes apples-to-apples compar-

isons. Instead of using gross averages, as federal pay criticsdo, the pay agent’s report accounts for differences in occu-pation, education, experience, length of service, age and ge-ographic location. In other words, it distinguishes betweenworkers such as a teenage McDonald’s cashier in Idaho andan experienced attorney in New York City; and even be-tween a junior attorney who writes pro forma wills and asenior attorney leading billion-dollar litigation.

HIGHER QUALIFICATIONS, HIGHER PAYThe pay agent’s report also accounts for the fact that the

federal government contains more higher-paying occupa-tions and jobs that require greater qualifications than theprivate sector generally. For example:

• 44 percent of the federal work force consists of profes-sionals and managers, while these groups consist of only 32percent of the private sector;

• 43 percent of the federal work force has a bachelor’s de-gree, while only 28 percent of the private sector does;

• The average age of employees in the federal work forceis 45, while the average age in the private sector is 40; and

• 60 percent of federal employees have served their na-tion for 15 or more years, signifying more on-the-job expe-rience than the average private-sector employee.

INAPPROPRIATE DATA, UNFAIR ATTACKSIn addition, criticsuse inappropriatedata that exaggerates

the “total compensation” of federal employees. Most basetheir total compensationfigures for federal employeesonBu-reau of Economic Analysis data used to calculate Gross Do-mestic Product (GDP). This data includes payments to theCivil Service Retirement Fund to account for promised ben-efits fornow-retiredpersonnel.However,whenfiguring totalcompensation for private-sector employees, similar private-sector pension payments are not included.

Not only are these attacks inaccurate, they unjustly makescapegoats out of those citizens who take lower pay in orderto provide public service and deliver important publicgoods. Federal civil servants represent national assets: intel-ligence analysts working to prevent terrorist attacks, re-searchers developing cures for cancer, nurses caring forwounded veterans or air traffic controllers ensuring safetravel. The government must pay at least close to a reason-able salary for these jobs to recruit and retain qualified in-dividuals. American citizens deserve nothing less.

By JohnHatton,Legislative Specialist


LegislativeReport

Federal Workers Overpaid? No!STORYHIGHLIGHTS

� Not overpaid,federal employees are actually paid22 percent less than their private-sector counter-parts,according to an annual government report.

� The government report’s comparisons are based onsimilar occupations,education,experience,length ofservice,age and location – not on gross averages.

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Commercials selling detergent instead of 30-second campaign spots in need of detergent.With our elections in the rearview mirror, theairways are free of campaign ads, at least for a

while. The voters have spoken. Most tune out politics, butNARFE members need to engage. Now, our task is to meetthe elect – candidates who won election to the 112th Con-gress (2011-2012).

LAME-DUCK SESSIONIncumbents, even those retiring from Congress, knew

a post-election or lame-duck session would begin in mid-November, break for Thanksgiving and run into De-cember. Candidates elected for the first time attended ori-entation sessions in Washington the week before Thanks-giving.

MEET NEW, RETURNING LAWMAKERSNARFE members can set themselves apart from many

other groups by meeting face to face with new and re-turning members of Congress. These officials, like anyelected officials, will need to be educated about our issues.Indeed, most freshman lawmakers will have had little ex-posure to federal civil service issues. Moreover, most will begracious and grateful for information, including this issue of

NARFE magazine and the preceding two months coveringfederal benefits Open Season. Self-interest about federalbenefits should prompt questions about their own healthbenefits options.

WINNERS IN SHOCKSuccessful challengers and open-seat winners face a

daunting learning curve. After the first full night’s rest inmonths, they need to learn quickly. NARFE members mightoffer to help by volunteering during the transition from can-didate to lawmaker. Chapters should extend an open-endedinvitation to address a NARFE chapter meeting or a multi-chapter forum.

HARNESSING THE MOMENTAs congressional schedulers in each office map out the

schedule for 2011, now is the ideal time to invite local rep-resentatives and both senators to address NARFE issues atyour 2011 federation convention. NARFE federation con-ventions are good venues for senators (and governors) sincethey represent the entire state and draw the largest groupof NARFE leaders to one place. Be flexible – plan yourmeeting around your lawmaker’s schedule, not when youtypically hold meetings – and stay in touch!

By Christopher Farrell,Legislative Representative

Meet the Elect

T H E I N F O R M E D C I T I Z E NC I V I C S 1 0 1 :

Please send check, money orderor credit card information to:

Attn: Budget & FinanceNARFE

606 N. Washington St.Alexandria, VA 22314-1914

Card Type: � Mastercard � VISA� Discover � AMEX

Card #

Expiration Date

Name on Card (Print)

Signature Date

I support NARFE¥PAC, the Retiree?s Fund for theI support NARFE¥PAC, the Retiree?s Fund for theFutureFuture

Enclosed is my NARFE-PAC contribuEnclosed is my NARFE-PAC contribu --

tion: $tion: $

Federal law requires political committees to report the name, mail-ing address, occupation and name of employer for each individualwhose contributions aggregate in excess of $200 in a calendar year.

Please circle: Mr. Mrs. Miss Ms.

Name

Address

City, State, ZIP

Only members of the National Active and Retired Federal Employees Association may contribute to NARFE-PAC. NARFE will neitherfavor nor disadvantage anyone based on the amount of a contribution, or the failure to make a voluntary contribution to this non-parti-san political action fund. NARFE-PAC contributions are not deductible for federal income tax purposes.

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In Search of Yield: Buyer Bewareock-bottom interestrates have been a recentboon to many. (Whowould have thought

you could get a 30-year, fixed-ratemortgage for 4.25 percent?) But forthose trying to live off of their invest-ment income, record low rates havebeen nothing short of a disaster. In fact,a retiree’s fear of dying too soon hasbeen supplanted by the fear of runningout of money before running out oftime. As inflation erodes our pur-chasing power, and interest rates nolonger support income needs, retireeshave been the target of new productsand advice for capturing more yield.But as many have already discovered,yield can come with a hefty price tag.

Let’s start by putting the current co-nundrum into perspective. Havingpeaked at 21.5 percent in 1980, theprime rate has flat-lined at 3.25 per-cent (see chart, p. 19); the averagemoney market fund yields approxi-mately 0.15 percent; the three-monthTreasury bill, 0.10 percent; the averagebank money market account, 0.69 per-cent; the average five-year certificateof deposit (CD), 2.41 percent; and the10-year Treasury bill, a whopping 2.35percent. After adjusting for taxes andinflation, yields are negative!

With yields in the cellar, the creativeminds on Wall Street have been de-vising new products to satisfy the ap-petites of yield-hungry investors. Onesuch product attracting large sums ofmoney is the structured note. Ac-cording to Bloomberg Businessweek,sales of structured notes have risen to$31.9 billion through August – up 58percent over the same period in 2009.

Structured notes are notes or CDswith specific payout profiles (based onthe performance of a variety of under-lying asset classes) at maturity. The un-derlying asset classes can range fromthe simple to the exotic. Equities, com-modities, foreign exchange rates andinterest rates (such asthe Libor rate, therate that bankscharge each other)are just a few of thepossibilities. Struc-tured notes have thepotential to deliverhigher yields to in-vestors. However, be-cause the perform-ance is often tied tononfixed income as-sets, they also canhave the potential toprovide shocking re-sults when marketsgo south – a timewhen traditionalfixed-income invest-ments can provide stability.

One extreme example, as noted inthe Bloomberg Businessweek article “In-dividual Investors Duped by Deriva-tives,” is of an84-year-oldwho investedin a structured note with a yield of 9percent. This particular structurednote’s payout was tied to the perform-ance of Merck’s common stock. Fur-thermore, the note’s issuer had theright to pay out in Merck shares if theshare price of Merck dropped below atrigger point. As it turnedout, the stockdid drop below the trigger point, andthe 84-year-old investor receivedshares of Merck valued at roughly 30percent below her original investment.

It’s clear fromthearticle title that the

author’s intent is to tap into thepublic’sdistaste for derivatives and Wall Street’spropensity to peddle unsuitable prod-ucts on unsuspecting investors. How-ever, to be fair, derivatives themselvesare not the problem, and not all struc-tured notes expose investors to such

risks. In fact, typically,one of the attractivefeatures of structurednotes is theirprincipalprotection feature, ifheld to maturity. Un-fortunately, in theBusinessweek story,there was no prin-cipal protection fea-ture, and the buyerdidn’t fully under-stand the product orthe risks involved.

As much aseveryone loves tovilify Wall Street,they’re not the onlyones potentiallyduping individual in-

vestors into risky strategies. To thatpoint, magazines and newspapers alikehave been jumping in with their twocents – granted, their intentions aregood but perhaps a little misguided.

Take, for example, this quote from arecentmagazinearticle: “Youcan’t fundretirement nirvana on today’s skimpypayouts from cash and Treasuries. Butwith a small (my emphasis) step up inrisk, you can earn a solid 4 percent onyour portfolio – maybe a whole lotmore.” The article goes on to offer highdividend-paying stocks, high-yieldbonds and foreign bonds, amongothers, as investments that individualinvestors can use to boost their yield.

These are all legitimate investments

By Mark A.Keen,CFP®

ManagingMoney

THE CREATIVEminds on Wall Streethave been devisingnew products to

satisfy the appetites ofyield-hungry investors.

R

NARFE | DECEMBER 2010 19

and, considering inflation, taxes andlongevity risk, I would argue that a partof every investor’s portfolio should beallocated to these securities. However,

making the comparison to cash andTreasuries as a small step up in riskdoesn’t cut it. In the meltdown of 2008,many high-yield bond funds lost more

than 30 percent, and the average stockfell close to 40 percent.

As I previously mentioned, it’s notthat you shouldn’t invest in these typesof securities. Just be sure you fully un-derstand the risks involved and onlyincorporate them within the context ofa comprehensive investment strategy.Otherwise, there may be unintendedconsequences.

Mark A. Keen, CFP®, is president andowner of Bennett Financial Advisors inFairfax,VA, and an investment adviserrepresentative and registered repre-sentative of The Strategic FinancialAlliance, Inc. (SFA). Securities and advi-sory services are offered through SFA.E-mail: [email protected] 1985 1990 1995 2000 2005 2010

25%

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10%

5%

0%

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A lthough older adultsgenerally drink lessthan younger people,they can still have

trouble with alcohol use. As peopleage, they can develop health problems

and chronic dis-eases, and takemore medicationsthat can make al-cohol use aproblem. Drinkingcan make healthconditions worse,includingdiabetes,high blood pres-sure, congestive

heart failure, liver disease, memoryproblems, depression and anxiety.

Aging causes people to becomemore sensitive to alcohol’s effects. Thebodies of older adults have a lowerwater content and break down alcoholmore slowly than do the bodies ofyounger people. As a result, olderadults have a higher amount of al-cohol in their blood than youngerpeople after drinking the same amountof alcohol. Older persons can developslurred speech, lack of coordinationand other problems with alcohol, eventhough their drinking habits have notchanged.

Although moderate drinking (up totwo drinks a day for men and onedrink for women) can reduce thechances for developing heart disease,heavy drinking can damage the heart,and long-term alcohol use can causehigh blood pressure, which increasesyour risk of heart disease.

Even one drink per day can raisethe risk of breast cancer in women

who have been through menopauseor have a family history of cancer.Heavy drinking can increase the risk ofmany cancers and can damage theliver, brain, muscles and immunesystem.

A person’s bones become thinnerand break more easily with age, andheavy drinking can increase the risk of

osteoporosis (brittle bones). In olderadults, too much alcohol can lead tobalance problems and falls that can re-sult in hip and arm fractures. The rateof hip fractures in older adults in-creases with alcohol use.

Many older adults take prescriptionand over-the-counter medications,and herbal remedies. Drinking alcoholcan cause some medicinesnot to workproperly and others to become dan-gerous or deadly. Mixing alcohol andcertain medicines can cause sleepiness,confusion and lack of coordination,headache, nausea and vomiting. Cer-tain medicines interact with alcoholand can produce negative effects.When taken with alcohol:

• Aspirin or arthritis medicationscan increase the risk of bleeding in thestomach;

• Acetaminophen in large doses canincrease the chances of liver damage;

• Some sleep aids, painkillers, anti-depressants, anti-anxiety medicines,and cold and allergy medicines con-

taining antihistamines can causedrowsiness and impair coordination;and

• Medications for high blood pres-sure, diabetes, ulcers, gout and heartfailure can make those conditionsworse.

Medications stay in the body for atleast several hours. There can, there-

fore, be a problem, even if you drink al-cohol hours after taking medication.Read the warning labels on your med-ication, and ask your doctor or phar-macist whether it is safe to drink al-cohol while taking it.

In general, healthy adults over age65 who drink more than three drinks adayora totalof sevendrinksaweekriskserious alcohol problems. Dependingon your health, you may need to drinkless than these limits or not at all.

Do not drink if you plan to drive,

By Marilyn S.Radke,M.D.

LiveWell

ToLearnMore

For more information, write tothe National Institute on

Aging,Building 31,Room 5C27,31CenterDrive,MSC2292,Bethesda,MD 20892;or call The National In-stitute on Aging Information Cen-ter at 800-222-2225;or visit theWebsite atwww.nia.nih.gov.

Alcohol Use and Aging

OLDER ADULTS have a higheramount of alcohol in theirblood than younger peopleafter drinking the sameamount of alcohol.


operate machinery, take medicine thatinteracts with alcohol or have a med-ical condition that can be made worseby drinking.

One alcoholic drink is:• 12 ounces of regular beer, ale or

wine cooler;• 8 ounces of malt liquor;• 5 ounces of wine; or• 1.5 ounces (a shot glass) of “80

proof” liquor, such as whiskey, gin,vodka and rum.

Clues to a possible alcohol problemfor older adults include memory loss,depression, anxiety, poor appetite, un-explained bruises, falls, sleeping prob-lems and inattention to cleanliness orappearance.

Answering “yes” to one or more ofthe following questions is a sign of apossible drinking problem:

• Have you ever felt you should cutdown on your drinking?

• Have people annoyed you by crit-icizing your drinking?

• Have you ever felt guilty aboutyour drinking?

• Have you ever felt as though youneeded to have a drink first thing inthe morning (“eye opener”)?

Talk with your doctor if you an-swered “yes” to any of these questionsor if you feel you have drinking-relatedhealth problems.

Marilyn S. Radke, M.D., is board cer-tified in preventive medicine andpractices in Atlanta, GA.

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NARFE and the Alzheimer’sAssociation celebrated the25th anniversary of our

proud partnership at NARFE’s 31st Na-tional Convention in Grand Rapids, MI.

Convention atten-dees received acommemorativelapel pin from theAlzheimer’s Asso-ciation recog-nizing our 25years of workingtogether to sup-port research intothe cause, preven-

tion and treatment of, and cure for, thisdisease.

The Virginia Federation was recog-nized for contributing themost in termsof total dollars during the past fiscalyear ($66,270), and the Mississippi Fed-erationwas recognized for contributingthe most per capita. Additional fundswere raised through the generosity ofNARFEmembers andguests, includingour “Going Green for NARFE-Alzheimer’s” 50/50 cash raffle. Ourkeynote speaker Mary Ellen Geist alsodonated a portion of the sales of herbook, Measure of the Heart: A Father’sAlzheimer’s, A Daughter’s Return.

The NARFE-Alzheimer’s NationalCommittee selected four additional re-search projects to fund (which are de-scribed below) and recommended tothe general assembly of delegates thatwe set a new goal to reach $10 millionin 2012. The new fundraising goal forAlzheimer’s research was unanimouslyapproved.

The four new research grants, to-taling $560,000, bring the total

number of NARFE-funded grants to49. The four research grants are:

Dr. Donna Cross from the Univer-sity of Washington (Seattle) plans to ex-pand her earlier work by focusing onan enzyme that has been associatedwith the production of twoAlzheimer’s-related molecules: betaamyloid and abnormal tau protein.

Dr. Cheng-Xin Gong at the NewYork State Institute for Basic Research(Menands, NY) will study how loss ofinsulin signaling (insulin plays an im-portant role in the brain) contributes to

neurofibrillary tangles, which is onefeature of Alzheimer’s pathology.

Dr. Kumar Sambamurti of theMedical University of South Carolina(Charleston) will study whether treat-ments to reduce homocysteine levels(elevated concentrations in theblood are thought to increase therisk for heart disease) also will reducethe development of Alzheimer’s-likepathology.

Dr.Maria Corrada of the Universityof California (Irvine), in this long-termassessment, hopes to clarify how thedementia risk and the relationship be-tween vascular health and brain health

change over the course of a lifetimewith people age 90 and older. Thisknowledge could lead to lifestyle pre-vention strategies.

We are always looking for ways tomake it easier and more efficient forNARFE members to donate toAlzheimer’s research. In November, theAlzheimer’s Association rolled out aspecial page for NARFE on its Web site(www.alz.org/narfe) for making onlinecredit card donations. You may nowtake advantage of the “cash-backbonus” or “cash-back rewards” associ-ated with your credit card. You will beable to report your chapter number toensure your chapter receives credit.After donating online, you will receivean e-mail confirming your donationhas been received by the Alzheimer’sAssociation. (Your e-mail address willbe kept confidential and not used forany other purpose by the Alzheimer’sAssociation.) In addition, you will re-ceive an acknowledgement letter inthe mail for tax purposes.

We also have revised the coupon inNARFEmagazine to include the optionof using your credit card. We are veryexcited about this new feature andhope it will make donating easier formembers of our offshore federationsand chapters, as well as for NARFEmembers throughout the nation.

Thanks to all of you for supportingAlzheimer’s research. We are very closeto meeting our goal of $9 million byNARFE’s 90th Anniversary. And I lookforward to another productive year aswe work toward meeting our new goalof $10 million in 2012.

Barb L. Pretzer is chairman of theNARFE-Alzheimer’s National Com-mittee. E-mail: [email protected].

Alzheimer’sUpdate

By Barb L.Pretzer

New Research and a New Goal

THE FOUR NEWresearch grants selected

by the NARFE-Alzheimer’s NationalCommittee bring the

total number ofNARFE-funded grants

to 49.

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This is the last of a three-part series.

The 2010 Federal BenefitsOpen Season for FederalEmployees Health BenefitsProgram (FEHBP) enroll-

ment changes ends Monday, De-cember 13, 2010. You should receivethis issue of NARFE magazine in lateNovember, so there’s still time to re-view health plans and make an in-formed decision.

Thismonth’sOpenSeasonReport in-cludesdetails aboutplanchanges in thesix open-to-all, fee-for-service plans for2011. It alsoprovides thesamepremiumcharts thatwere included inNovember’sOpen Season Report. Open Seasonchanges made by federal retirees andsurvivorannuitants areeffective January1, 2011, and the premium changes willbe effective in the February 1, 2011, an-nuity payments. Open Season changesfor federal employees are effective at thebeginning of the first pay period afterJanuary 1, 2011.

If you are a current employee andnot presently enrolled in the FEHBP,you may enroll during Open Season if

you are not otherwise excluded fromcoverage because of the nature ofyour appointment. If you are an an-nuitant and are not presently coveredby the FEHBP as an enrollee or afamily member, you cannot enroll inthe FEHBP during Open Season, ex-cept if you suspended your FEHBPenrollment in favor of coverage underTRICARE, TRICARE For Life, aMedicare Advantage HMO plan,CHAMPVA, Medicaid or as a PeaceCorps volunteer.

MEDICARE SUBOPTIONSOFFERED TO RETIREES

The Government Employees HealthAssociation (GEHA) and the Mail Han-dlers Benefit Plan (MHBP) have beenapproved by the Office of PersonnelManagement (OPM) to offer Medicare-eligible enrollees incentives throughsubsidizing the enrollees’ Medicare PartB premium. These “suboption” pilotprograms are outlined below:

• GEHA. Retired enrollees inGEHA’s High option who already arecovered by Medicare Part A and who

are either covered or are eligible to becovered by Medicare Part B some timein 2011 can sign up for the suboption.GEHA will pay the enrollee $75 eachmonth ($900 a year) to help defray themonthly premium costs of Part B whenthe enrollee actually enrolls. If you aremarried and are enrolled in GEHA’sHigh option family coverage, both youand your spouse must be over age 65and retired to be eligible for the pilotprogram. Participants in the pilot pro-gram will not pay deductibles or co-payments for inpatient hospitalization,but will pay deductibles and co-pay-ments for physician visits and othercare, and they will pay the same for pre-scriptions as non-Medicare enrollees.See page 83 of the GEHA brochure for2011 for all of the details.

• MHBP. MHBP’s suboption pilotprogram features a Medicare Part B pre-mium “pass through” under the plan’sStandard option. For each month thatyou are enrolled in the program andhave Medicare Part A and Part B asyour primary coverage, MHBP willcontribute an amount equal to the reg-ular 2011 Medicare Part B monthly pre-mium of $120.20. MHBP will not waiveits deductibles, co-payments or coin-surance for participants in the pilot pro-gram. See page 127 of the Mail Han-dlers Benefit Plan brochure for 2011 forall of the details.

2011 brochures for all of the FEHBPplans can be viewed and downloadedto your computer by going towww.opm.gov/insure.

2011 PREMIUMSThe overall weighted average total

premium increase for nonpostal em-ployees and all annuitants in theFEHBP for 2011, based upon all of the


FEHBPPremium Increases 2002–2011

Source: Office of Personnel Management *Estimated

PPEENN SSEEAASSOONN RREEPPOORRTTFEHBP Plan Changes


PEN SEASON REPORT

brochure, note which costs are not in-cluded in meeting the plan’s yearly de-ductible. These out-of-pocket expensescan really add up.

PLANS’ STATUSFEHBP participants will be able to se-

lect from 207 health plan choices. MercyCare HMO (Wisconsin) and Se-

lectHealth HMO (Utah) have joined theFEHBP for 2011.

Five HMOs will no longer partici-pate in the FEHBP after December 31,2010. They are:• Vantage Health Plans (Code MV) inLouisiana• PacifiCare of Nevada (Code K9)• AmeriHealth HMO (Code FK) in NewJersey• Community Blue (Codes BS, BX, BZ) inNew York• BlueChip Coordinated Health Plan(Code DA) in Massachusetts and RhodeIsland.

In addition, UnitedHealthcare Insur-ance Company, Inc. (Code E9) will nolonger offer an HDHP or CDHP optionin 25 states and the District of Co-lumbia. And Coventry Health Care ofLouisiana (Code HB) will terminate itsHDHP option.

Several plans will reduce parts oftheir service areas by withdrawing fromthose service areas, effective December

31, 2010. The plans are:• Humana CoverageFirst CDHP(Code DB), Phoenix/Tucson, AZ (Codes MQ, YG), Jacksonville and

Orlando, FL(Codes 9L, 9J), Baton Rouge and

New Orleans, LA(Codes L6, BT), Memphis and

Nashville, TN(Codes T8, T2), Dallas and Houston,

TX(Code IA), Salt Lake City, UT• Fallon Community Health (Stan-

dard option only)(Code JV), Massachusetts

• Aetna Open Access(Code 7D), Cleveland/Toledo, OH• HealthAmerica PA

(Codes PN, 9N), SoutheasternPennsylvania

Employees who do not changehealth plans by making a positiveelection into another FEHBP planduring Open Season will not havehealth benefits for 2011. Retirees whodo not change health plans bymaking a positive election into an-other FEHBP plan during OpenSeason will be put into a comparableoption in the fee-for-service BlueCross/Blue Shield plan.

TERMINATION NOTICEEnrollees will know of their plan’s

enrollees in all of the plans, is 7.3 per-cent.

This 7.3-percent figure is not anacross-the-board increase per plan.This is the weighted average increasefor the total premium (government andemployee shares) for all of the enrolleesin all of the plans in the FEHBP. Thismeans that some plans’ premiums de-creased, some did not change at all,and some increased. Fee-for-serviceplans will rise an average of 7.1 percent,while local health maintenance organ-ization (HMO) plans’ premiums will in-crease an average of 8 percent.

Enrollees in the Blue Cross/BlueShield Standard option – the most pop-ular enrollment – will see their pre-miums increase 6.9 percent for self-only coverage and 7.6 percent forfamily coverage.

There are HMOs where enrolleeswill see huge increases in their share ofthe premium. The monthly enrolleeshare of premiums for Health Net ofNorthern California will rise $290.67.The enrollee share for Aetna Open Ac-cess’ High option family plan forDelaware and New Jersey will increase$266.56 per month. GHI HMO Selectof New York enrollees in codes 6V2and X42 will see monthly increases of$370.43 and $485.98. On the other endof the spectrum, monthly premiumsfor two of the MVP Health Care plansof NY (enrollment codes GA5 and MF5Standard family) will decrease substan-tially for 2011. But even if your partic-ular plan’s premiums are not rising bymuch, make sure you read thebrochure – particularly Section 2, “HowWe Change for 2011.” This will revealwhich, if any, out-of-pocket expenses,such as co-pays and coinsurance, haveincreased. Also, when reading the

termination from two sources. First, apre-Open Season Letter for all agencybenefits officers is produced. It includesdetails about Open Season, includingthe names of plans leaving the FEHBP.

Second, all terminating plans are re-quired to mail a notice to their mem-bers advising them of their decision towithdraw from the program.

Because of the transitional care pro-vision in the Patients’ Bill of Rights, en-rollees with chronic or disabling condi-tions, or in the second or third trimesterof pregnancy, may be able to continueseeing their specialists even after theplan’s termination date.

Plans generally decide to withdrawbased on an assessment of enrollment,use and premium. However, OPM caninitiate a termination if it determinesthat a plan is no longer able to meet itscontractual obligations to the FEHBP.

DENTAL AND VISIONBENEFITS

Open Season enrollment for the Fed-eral Employees Dental and Vision Insur-ance Program (FEDVIP) will coincidewith the FEHBP 2010 Open Season for2011 health plan changes and the Flex-ible Spending Accounts (FSA) OpenSeason for current employees. (UnderInternal Revenue Service rules, retireescannot participate in the federal govern-ment’s FSA program.)

Eligible parties will be able to choosebenefits that cover dental care, visioncare or both. In addition, the coverage(s)can be elected for the enrollee only, theenrollee plus one other person, or theenrollee and his or her family.

Anyone who retired on an imme-diate annuity, including an employeewho retired under the Federal Em-ployees Retirement System (FERS) min-imum retirement age (MRA) + 10 pro-visions of the retirement law, is eligiblefor FEDVIP. In addition, survivors who

receive immediate annuities as the re-sult of the death of a retiree describedin the previous sentence are also eli-gible. (See pp. 34-38.)

MEDICARE PART D ANDFEHBP

The Medicare Part D prescriptiondrug benefit is generally geared topeople who do not have any employer-provided or union-provided prescrip-tion drug coverage. Anyone coveredunder the FEHBP has what is known as“creditable prescription drug coverage.”This means that the FEHBP prescrip-tion drug coverage is at least as good as,if not better than, the Part D coverage.This also means that if a person withFEHBP coverage turns down Part Dwhen he or she is first eligible to enrollbut signs up at some point in the fu-ture, he or she will not be required topay a penalty for late enrollment in PartD.

The FEHBP plan brochures containstatements certifying the creditabilityof each individual plan’s drug coveragefor Part D late-enrollment purposes.These statements will be found at thebeginning of each plan’s brochure, im-

mediately before the table of contents,and will be headed “Important NoticeFrom (Plan’s Name) About Our Pre-scription Drug Coverage andMedicare.” All FEHBP enrollees shouldhave received a copy of their plans’2011 brochures before the beginningof Open Season, November 8.

Part D requires a monthly premiumin addition to the Medicare Part B pre-mium. (The Medicare Part B premiumwill stay at $96.40 per month in 2010for many because there will be no So-cial Security cost-of-living adjust-ment.)

Part D premiums vary from plan toplan, but the estimated averagemonthly basic premium for 2011 is$30. The Part D enrollee may have topay up to the first $310 in prescriptiondrug costs, the Part D deductibleamount. Some Part D enrollees willnot be required to pay the $310 de-ductible.

In addition, Part D enrollees will payco-pay costs until the combinedamount paid by both the enrollee andthe Part D plan reaches $2,840 and allthe cost of prescription coverage from$2,840 up to $4,550 – the so-called


PPEENN SSEEAASSOONN RREEPPOORRTT

Contributors to the 2011 FEHBP Premium IncreaseThe Office of Personnel Management identified the following factors as contributing to the 2011 FEHBP 7.3-percent overall premiumincrease and the percentage of the increase attributable to each fac-tor. Premiums for local plans, such as HMOs, will increase an aver-age 8.0 percent, while national plans will see an average increase of7.1 percent. FEHBP carriers used excess reserves in recent years torestrain premium increases. Savings contributors are also identified(as minus factors) to reflect savings in the program. These figuresreflect the average bi-weekly premium.

Factor Percent of Increase

Utilization, technology and medical inflation 7.2 percentDemographics (age, sex, etc.) 0.2 percentBenefit changes 0.7 percentEnrollee choice (plan movement) -1.7 percentReserves, financing -0.5 percentOther causes 1.4 percentAverage bi-weekly change 7.3 percent


“donut hole.” After that threshold ismet, Part D enrollees will pay 5 percentof the additional prescription drugcosts for the rest of the calendar year.

If the Part D enrollee reaches thedonut hole in 2010, he or she will re-ceive a one-time $250 rebate check.

In 2011, Part D enrollees will get a50-percent discount on covered brandname prescription drugs at the time

they are purchased.If Medicare is a person’s primary in-

surer, FEHBP plans will coordinate pre-scription drug payments with theMedicare Part D carrier.

Under your FEHBP coverage, yousimply pay co-payments and/or coin-surance for your prescription drugs, sothe vast majority of you will not needMedicare Part D.

FEE-FOR-SERVICE CHANGESThis portion of the Report addresses

the principal changes of the six fee-for-service plans available to all employeesand annuitants. There are another fivefee-for-service plans open only to spe-cific groups. Space limitations precludelisting all changes for all plans.

When reviewing each plan’schanges, take special note of an-nounced changes in preferredprovider organizations (PPOs). If youlive in a state where your plan ischanging its PPO network, you needto contact the plan and ask for a newPPO directory for 2011 to assure thatyour doctors, hospitals, etc., will be inthe new PPO network. Otherwise, youmay wish to change plans duringOpen Season.

Because there are more than 200FEHBP HMOs, it is not possible to listtheir changes in this report. OPM pub-lishes the Guide to Federal Benefits: ForFederal Retirees and Their Survivors(RI 70-9) and a similar one for currentfederal employees (RI 70-1), which pro-vide premium and out-of-pocket ex-pense data on all of the plans in theFEHBP. You can access those guidesthrough www.opm.gov/insure.

When deciding on a plan, be sure toreview your current plan’s 2011brochure, as well as the brochures forother plans you are considering. Youcan view brochures for each plan bygoing to www.opm.gov/insure. Everybrochure is formatted in the same waywith sections on topics such as “HowOur Plan Has Changed,” “Your Costs forCovered Services,” “Coordinating Bene-fits With Other Coverage,” etc.

PROGRAMWIDE CHANGESCertain provisions of the new health

reform law (Affordable Care Act) willbecome effective January 1, 2011, forall FEHBP plans. Preventive care and


Plan Option

Blue Cross/Blue ShieldStandard selfStandard familyBasic selfBasic family

Mail HandlersStandard selfStandard familyHDHP selfHDHP familyValue Opt. selfValue Opt. family

GEHAHigh selfHigh familyStandard selfStandard familyHDHP selfHDHP family

NALCHigh selfHigh family

APWUHigh selfHigh familyConsumer-Driven selfConsumer-Driven family

SAMBAHigh selfHigh familyStandard selfStandard family

Foreign Serv. Ben. PlanHigh selfHigh family

Code

104105111112

454455481482414415

311312314315341342

321322

471472474475

441442444445

401402

TotalPremium

$578.61$1,306.89

$453.48$1,061.97

$611.20$1,398.76

$394.77$894.51$285.91$681.63

$567.62$1,290.97

$346.62$788.28$380.81$869.79

$552.07$1,202.61

$477.08$1,078.72

$336.70$757.47

$661.68$1,558.25

$501.78$1,145.95

$493.96$1,181.46

Gov’tPays

$391.43$875.29$340.11$796.48

$391.43$875.29$296.08$670.88$214.43$511.22

$391.43$875.29$259.97$591.21$285.61$652.34

$391.43$875.29

$357.81$809.04$252.53$568.10

$391.43$875.29$376.34$859.46

$370.47$875.29

YouPay

$187.18$431.60$113.37$265.49

$219.77$523.47$98.69

$223.63$71.48

$170.41

$176.19$415.68$86.65

$197.07$95.20

$217.45

$160.64$327.32

$119.27$269.68$84.17

$189.37

$270.25$682.96$125.44$286.49

$123.49$306.17

EnrolleeIncrease/Decrease

$12.10$30.63$12.61$29.51

$53.76$127.18$20.98$47.55$11.77$28.05

$3.86$12.55$6.43

$14.78$0.00$0.00

$13.64$27.58

$7.81$17.64$0.00$0.00

$34.61$87.53$16.84$38.45

$9.18$11.56

2011 Monthly Premiums –Fee-For-Service


screenings will be available with noout-of-pocket costs, and older childrenup to the age of 26 can be added to theenrollee’s family coverage.

All plans will offer tobacco cessationbenefits that comply with the U.S.Public Health Service’s guidance to in-clude full coverage (no enrollee co-pays) for seven medications approvedby the U.S. Food and Drug Administra-tion and four counseling sessions perquit attempt (limited to two quit at-tempts per year).

Oklahoma has been added in 2011to the states designated as medicallyunderserved. The entire list is: Ala-bama, Arizona, Idaho, Illinois, Ken-tucky, Louisiana, Mississippi, Missouri,Montana, New Mexico, North Dakota,Oklahoma, South Carolina, SouthDakota and Wyoming. In these states,fee-for-service plans reimburse any li-censed medical practitioner for all cov-ered services within the scope of that li-cense, even if they wouldn’t normallycover them in states not designated asmedically underserved.

PLAN CHANGESFollowing are the major fee-for-

service plans and the changes in theircosts and benefits for 2011, taken fromtheir brochures. Because of space limi-tations, we do not show all of thechanges for next year, and we urge youto read the plans’ brochures and reviewthem carefully. Note: Postal rates applyto career employees of the U.S. PostalService. The Postal Service has a differentcost-sharing arrangement than the rest ofthe federal government.

American Postal Workers Union(APWU)

High Option Changes. In 2011,monthly premiums for enrollees in self-only coverage will increase $7.81 to$119.27 per month. For enrollees in

family coverage, the increase is $17.64to $269.68 per month. Postal em-ployees will pay $34.13 for self-onlycoverage and $77.17 for family cov-erage each pay period.

In 2011, the plan has dropped theindividual mental health calendar-yeardeductible altogether. This means thatyour out-of-pocket costs for mentalhealth and substance abuse will count

toward the plan’s $500 perperson/$1,000 per family deductible.The plan has added Cancer Centers ofExcellence as a separate provider cate-gory and will pay 95 percent of theplan’s allowance for cancer-relatedtreatment at one of those centers.

Consumer-Driven Health Plan(CDHP) Changes. Next year’s premiumsdid not change from 2010 and stay at

Plan Option

MD-IPAHigh selfHigh family

Kaiser Foundation High selfHigh familyStandard self Standard family

Kaiser FoundationHigh selfHigh familyStandard selfStandard family

Kaiser FoundationHigh selfHigh familyStandard selfStandard family

Aetna Open AccessHigh selfHigh familyBasic selfBasic family

HMSAHigh selfHigh family

GHI Health PlanHigh selfHigh familyStandard self Standard family

PacifiCareHigh selfHigh family

2011 Monthly Premiums –Largest HMOs*Code

JP1JP2

591592594595

E31E32E34E35

621622624625

JN1JN2JN4JN5

871872

801802804805

CY1CY2

State

MD,DC,VA

CA

DC

CA

DC,MD,VA

HI

NY-NJ

CA

TotalPremium

$523.64$1,207.48

$621.83$1,484.38

$520.52$1,218.01

$526.52$1,211.02

$330.55$760.20

$478.94$1,106.89

$306.87$709.26

$739.59$1,656.61

$472.94$1,106.84

$452.21$1,006.57

$608.23$1,520.65

$424.80$991.64

$474.02$1,082.03

Gov’tPays

$391.43$875.29

$391.43$875.29$390.39$875.29

$391.43$875.29$247.91$570.15

$359.21$830.17$230.15$531.95

$391.43$875.29$354.71$830.13

$339.16$754.93

$391.43$875.29$318.60$743.73

$355.52$811.52

YouPay

$132.21$332.19

$230.40$609.09$130.13$342.72

$135.09$335.73$82.64

$190.05

$119.73$276.72$76.72

$177.31

$348.16$781.32$118.23$276.71

$113.05$251.64

$216.80$645.36$106.20$247.91

$118.50$270.51

EnrolleeIncrease/Decrease

$10.99$29.94

$21.28$57.76$14.25$51.02

$2.08$10.36$10.07$23.13

$5.23$12.10$3.44$7.93

$69.27$157.94$13.06$30.59

$7.40$16.46

$16.78$52.10$9.65

$22.54

$5.95$13.58

*Based on information provided by the Office of Personnel Management. If your plan is not listed, it simply means that your plan isnot one of the largest. It does not mean that your plan is a bad plan.

N. California

Mid-Atlantic

S. California


$84.17 per month for self-only coverageand $189.37 per month for family cov-erage. Postal employees will see only amodest increase in biweekly premiums.

Enrollees in APWU’s ConsumerDriven Option’s Diabetes Disease Man-agement Program who participate as re-quired may be eligible for additional in-centives when using in-network serv-ices. See page 88 of the brochure.

Blue Cross/Blue Shield (BC/BS)Standard Option Changes. Pre-

miums are higher for self-only cov-erage, up $12.10 to $187.18 per month;and for family coverage, up $30.63 to$431.60. Postal employees will see theirbiweekly premiums for self-only cov-erage rise by $6.28 to $63.81; and forfamily coverage, biweekly premiumswill go up $15.87 to $148.70.

The coinsurance for medical emer-gency treatment by both participatingand nonparticipating providers per-formed in an emergency room is 15 per-cent of the plan allowance. The coinsur-ance is also 15 percent of the plan al-lowance for medical emergencytreatment at member and nonmemberfacilities and hospitals, much lower thanthe 35 percent the plan required previ-ously.

The calendar-year deductible has in-creased to $350/individual and $700/family, and the 35 percent of the plan’s al-lowance coinsurance for preventive careservices for children is applied after thecalendar-year deductible is satisfied.

Co-pays will increase to $250 per ad-mission for inpatient care at preferred fa-cilities and $350 per admission plus 35percent of the plan allowance for inpa-tient care at member facilities.

Benefits for outpatient surgery andrelated services performed and billed forby a hospital or freestanding ambulatoryfacility will now count toward the cal-endar-year deductible.

The plan will now pay benefits in fullfor inpatient mental health and sub-stance abuse services received from pre-ferred professional providers.

Under the plan’s prescription drugbenefits, co-pays have gone up to $70per prescription for the first 30 prescrip-tions for brand name drugs when usingthe mail order services. Enrollees may beeligible to receive their first four genericprescriptions free through the mailorder services when changing from abrand name to a corresponding genericdrug replacement.

Basic Option Changes. Premiumswill rise $12.61 to $113.37 per monthfor self-only coverage and by $29.51 to$265.49 for family coverage. Postal em-ployees will pay $32.44 every twoweeks for self-only coverage and $75.97for family coverage.

Enrollees will now have $25 co-paysfor EEGs, ultrasounds and X-rays, and$75 for CT scans, MRIs, PET scans andother tests. Co-pays also will rise foremergency room care and at preferredurgent care centers for care related to ac-cidental injury and medical emergency.On the other hand, co-pays for outpa-tient mental health and substance abusetreatment provided and billed by a pre-ferred facility are lower ($25), as is the co-pay for professional charges for intensiveoutpatient treatment in a provider’s of-fice or other professional setting.

Co-pays for preferred brand namedrugs purchased at a preferred retailpharmacy are higher, at $40 per 34-dayprescription, and the minimum you paywill be $50 for each 34-day supply or$150 for a 90-day supply.

Changes to both Standard and Basicoptions. In 2011, the plan will no longerrequire enrollees to obtain prior approvalbefore receiving outpatient care formental health and substance abusetreatment or for outpatient intensity-modulated radiation therapy related to

treatment of head, neck, breast orprostate cancer. The plan has also addedbenefits for adult screenings to includesome sexually transmitted infections.

There will no longer be a co-pay re-quired for smoking cessation treatmentsat a preferred provider, and smoking ces-sation medications are free from a pre-ferred retail pharmacy when the enrolleeis engaged in the Breathe for SmokingCessation module.

The plan will pay in full up to $1,000per hearing aid per ear for children andadults, and for speech-generating de-vices obtained from any qualifiedprovider.

The plan will now include benefits forosteopathic and chiropractic manipula-tion treatment limited to 12 visits peryear under the Standard option and 20visits per year under the Basic option.

Government Employees Health Association (GEHA)

Standard Option Changes. Monthlypremiums for self-only coverage will in-crease slightly to $86.65 and to $197.07for family coverage. Postal employeeswill pay $24.80 for self-only coverageand $56.39 for family coverage eachpay period next year.

Co-pays for visits to preferredprovider organization (PPO) mentalhealth providers are reduced to $10.

High Option Changes. Monthly pre-miums for self-only coverage will be$176.19 per month. High family cov-erage premiums will increase to $415.68per month. Postal employees will paylower biweekly premiums of $58.74 forself-only coverage and an increase to$141.35 for family coverage.

Changes to Both Standard and HighOptions. The plan has dropped lifetimemaximum benefits for durable med-ical equipment and dropped the life-time limit for outpatient visiontherapy done by either an ophthal-


Self Only (471)

Self and Family (472)

$119.27

$269.68

This Open Season get on the road to good health with the APWU Health Plan. As a retiree you’ve earned the freedom to do what you want and enjoy life to the fullest. With the APWU Health Plan’s High Option all your needs are covered. Whether you’re on the road visiting friends and family, or at home relaxing, the High Option has you covered. Enjoy low copays, deductibles and a comprehensive prescription plan. All members in the APWU Health Plan also have full access to the hearing benefi t which covers hearing aids up to $1,500. With Medicare as the primary health plan members in the High Option generally pay no copays and coinsurance. For more information on the High Option or the APWU Health Plan please visit our website at www.apwuhp.com.

mologist or optomologist.All routine adult vaccinations are

free, as are office visits for adult preven-tive care examinations if they are doneat a plan PPO.

Mail Handlers Benefit Plan (MHBP)There are many changes under

both the Standard and the Value Planoptions in 2011. See p. 9 of the planbrochure for the entire list.

Standard Option Changes. Monthlypremiums will increase $53.76 to$219.77 for self-only coverage, andfamily coverage will increase $127.18to $523.47. Postal employees will seetheir biweekly premiums increase$25.51 to $78.85 for self-only coverageand rise $60.43 to $191.10 for familycoverage.

In addition to the steep rise in pre-miums, MHBP has increased many co-payments and deductibles, and it hasraised its catastrophic protection limiton out-of-pocket expenses for specialtydrugs. The plan has also done awaywith a separate catastrophic limit formental health and substance abuse,and has combined those out-of-pocketcosts with medical service costs – in ef-fect, raising the medical catastrophiclimits: to $6,000 if all of the services aredone by its PPO/in-network providersand $10,000 if the services are chargedto non-PPO/out-of-network providersor a combination of PPO and non-PPOproviders.

The plan has increased benefits foradult routine physical exams, immu-nizations and routine screenings,which now will be paid at 100 percent.

Value Plan Changes. Enrollees withself-only coverage will see an $11.77 in-crease and pay $71.48 per month; thosewith family coverage will pay $170.41 permonth. Postal workers will see a $4.47 in-crease to $20.45 every two weeks for self-only coverage and pay $48.76 every pay

period for family coverage. Like the Standard option, the plan

has combined the calendar-year de-ductibles for medical services withmental health and substance abuseservices for next year. The deductiblewill be $900 individual/$1,800 familyunless you receive all of your servicesfrom a plan PPO/in-network provider.Then, the calendar-year deductible is$600 individual/$1,200 family. Benefitshave increased for visits to a non-PPOemergency room and for outpatienttesting services related to mental healthand substance abuse conditions.

National Association of Letter Carriers (NALC)

Plan Changes. Premiums increasedby $13.64 per month to $160.47 forself-only coverage and increased$27.58 per month to $327.32 for familycoverage. Enrolled postal workers willsee biweekly premiums increase to$51.56 for self-only coverage and in-crease to $100.57 for family coverage.

Under its mental health and sub-stance abuse benefits, NALC no longerhas a separate calendar-year de-ductible or separate out-of-pocketmaximum.

The plan is also covering some ini-tial inpatient nonelective surgeriesdone by a non-PPO surgeon at thePPO benefit level and will pay the planallowance for non-PPO emergencyroom physicians and others at the PPObenefit level when the services are per-formed at a PPO ambulatory surgerycenter.

The plan also is increasing benefitsfor some prescription drugs: The cost-share for a 60-day supply of a specialtydrug purchased through CaremarkSpecialty Pharmacy mail order willdrop to $250. Also, the co-pay for a 90-day supply of generic medicationsthrough the NALCPreferred generic

program is $7.99.

Special Agents Mutual Benefit Association (SAMBA)

High Option Changes. Premiums for2011 will increase $34.61 to $270.25for self-only coverage and go up $87.53to $682.96 per month for family cov-erage. Postal employees will pay$102.15 for self-only coverage and$264.71 for family coverage per pay pe-riod.

Next year, the plan will no longerhave a separate calendar-year de-ductible for certain expenses formental health and substance abusetreatment.

Prescription co-payments under theplan’s retail prescription drug and mailorder prescription drug programs willincrease. For 2011, the plan will nolonger charge a $100 co-pay for outpa-tient hospital or ambulatory surgicalcenter visits under PPO benefits.

Standard Option Changes. Nextyear, self-only enrollees will see a$16.84 increase in monthly premiumsto $125.44, and family coverage en-rollments will rise $38.45 to $286.49per month. Postal employees’ pre-miums will increase by $35.90 and by$81.98 for self-only coverage and familycoverage, respectively.

There will be a different deductibleunder the Standard option: The de-ductible will rise to $350 per person and$1,050 per family. Catastrophic protec-tion will also increase to $5,000 perperson/$7,000 per family if all servicesare provided by a PPO. For services pro-vided by a non-PPO or a mix, the cal-endar-year, out-of-pocket maximumwill increase to $7,000 per person/$9,000per family.

SAMBA has eliminated the preven-tive dental services benefit for 2011.

Retirement Benefits Service Department



Open Season to elect your dental coverage ends on December 13, 2010.

You can review The MetLife Federal Dental Plan information and rates by visiting our website at federaldental.metlife.com.

To enroll go to www.BENEFEDS.com

Like most group accident and health insurance policies, MetLife dental insurance policies contain certain exclusions, limitations and terms for keeping them in force. Metropolitan Life Insurance Company, New York, NY 10166. © 2010 MetLife, Inc. © PNTS L1010137045(exp1011)(All States)(DC,GU,MP,PR,VI)

It’s not too late for a healthy conversation about your dental benefits.

Don’t let it get down to the wire.

$5,000 Annual Maximum on the High Option

T he Federal EmployeesDental and Vision Insur-ance Program (FEDVIP) isa supplemental dental and

vision program authorized by the Fed-eral Employee Dental and Vision Bene-fits Enhancement Act of 2004.

The Office of Personnel Manage-ment (OPM) contracts with 10 insur-ance carriers – seven dental plans andthree vision plans – to provide com-prehensive coverage under the pro-gram.

Three enrollment types are available:• Self Only: A self-only enrollment

covers only the enrolled employee orannuitant.

• Self Plus One: A self-plus-one en-rollment covers the enrolled employeeor annuitant, plus one eligible familymember.

* Self and Family:A self-and-familyenrollment covers the enrolled em-ployee or annuitant and all eligiblefamily members.

Federal and U.S. Postal Service em-ployees are eligible to enroll in FEDVIP

if they are eligible for the Federal Em-ployees Health Benefits Program(FEHBP). Annuitants (regardless ofFEHBP status) are eligible for FEDVIP.

VISION SERVICESVision plans provide comprehen-

sive eye examinations and coveragefor lenses, frames and contact lenses(in lieu of eyeglasses).

There are no deductibles orwaiting periods. Other benefits, suchas discounts on LASIK surgery, alsomay be available.

VISION PLANSAll nationwide plans include inter-

national coverage.FEP Blue Vision

FEP Blue Vision is offering an in-sured vision plan that is underwrittenby the local Blue Cross/Blue Shieldplans but will be administered byDavis Vision.

The Blue Cross and Blue Shield As-sociation (BCBSA) will contract withDavis Vision, a wholly owned subsidiary

of Highmark, Inc. (a licensee of BCBSAand a participating plan for FEP Blue Vi-sion) to administer its offering under theprogram. Davis Vision, Inc. is one of thenation’s leading managed vision andeye-care providers, and presently servesmore than 10,000 client groups cov-ering nearly 35 million beneficiaries.

• FEP Blue Vision offers flat-rate re-imbursement in areas without ade-quate access.

• Low-vision services are offered,and members can receive discounts onlaser vision correction.

• Offers an unconditional breakagewarranty to repair or replace any planframe or lens(es) for a period of oneyear from the date of delivery.

• Coverage for elective contactlenses and medically necessary contactlenses is offered.

• FEP Blue Vision’s High option pro-vides out-of-network benefits basedon a fee schedule.

• There are no out-of-network ben-efits under FEP Blue Vision’s Standardoption.


FEDVIP Nationwide Vision RatesBI-WEEKLY PREMIUM MONTHLY PREMIUM

Plan Name Telephone Plan Self Self Self Self Self Self& Web site Option Only Plus One & Family Only Plus One & Family

FEP BlueVision 888-550-2583 Standard $3.91 $7.82 $11.73 $8.47 $16.94 $25.42fepblue.org

High $4.91 $9.82 $14.73 $10.64 $21.28 $31.92

UnitedHealthcare 866-249-1999 Standard $3.13 $6.12 $9.11 $6.78 $13.27 $19.74Vision Plan TTY: 800-524-3157

myuhcvision.com/fedvip High $4.38 $8.54 $12.73 $9.49 $18.51 $27.58

VSP (Vision 800-807-0764 Standard $4.28 $8.55 $12.83 $9.27 $18.53 $27.80Service Plan) choosevsp.com

High $6.06 $12.12 $18.19 $13.13 $26.26 $39.41

PPEENN SSEEAASSOONN RREEPPOORRTTDental/Vision Program


UnitedHealthcare Vision PlanUnitedHealthcare Vision is offering

an insured vision plan. UnitedHealth-care Vision has been providing visionservices for more than 40 years andcurrently has more than 17 millionmembers nationwide.

• UnitedHealthcare Vision will payout-of-network, limited access and in-ternational benefits based on a pub-lished fee schedule.

• Low-vision services are offered,and members can receive discounts onlaser vision correction.

• UnitedHealthcare Vision offersprosthetic eye replacement on a life-time maximum basis.

• Coverage for elective contact

lenses and medically necessary contactlenses is offered.Vision Service Plan (VSP)

VSP is offering an insured visionplan. VSP® is the nation’s largest not-for-profit eye-care benefits and serv-ices provider. With more than 55 mil-lion members, one in six people in theUnited States has VSP coverage. In2009, Synovate, a global market re-search firm, ranked VSP “Highest inOverall Member Satisfaction” amongnational vision plans.

• VSP will pay international benefitsbased on a published fee schedule.

• VSP offers an Eye Health Manage-ment program, which complementsdisease management and wellness ini-

tiatives, and concentrates on diseasessuch as diabetes, glaucoma and mac-ular degeneration.

• Coverage for elective contactlenses and medically necessary contactlenses is offered.

• VSP provides an out-of-networkbenefit.

• Members can receive discounts onlaser vision correction.

DENTAL SERVICESDental plans provide a comprehen-

sive range of services. Services are di-vided by four categories, as follows:

• Class A (Basic) services, which in-clude oral examinations, prophylaxis, di-agnostic evaluations, sealants and X-rays.

www.myuhcvision.com/fedvip1-866-249-1999

Enroll Today,And Get The Best ofBoth Worlds!

FEDVIP Open Enrollment period: November 8—December 13, 2010

All participating providers meet orexceed established quality andlicensing standards as certified bythe National Committee for QualityAssurance (NCQA).

Our national network of morethan 30,000 providers is made up of both private practicesand retail chains. This offersyou the best of both worlds:the personal service of a privateprovider, along with the convenience, extended hoursand selection offered by retailchain providers. And nine outof ten UnitedHealthcare VisionFEDVIP members would recommend our plan to familyand friends.*

2011

®

*UnitedHealthcare Vision Member Survey.UnitedHealthcare Vision® coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services providedby Spectera, Inc., United HealthCare Services, Inc. or their affiliates.

UHC3016 NARFE ad 8/12/10 10:43 AM Page 1

PEN SEASON REPORTDental/Vision Program



• Class B (Intermediate) services,which include restorative proceduressuch as fillings, prefabricated stainlesssteel crowns, periodontal scaling, toothextractions and denture adjustments.

• Class C (Major) services, whichinclude endodontic services such asroot canals, periodontal services suchas gingivectomy, major restorativeservices such as crowns, oral surgery,

bridges and prosthodontic servicessuch as complete dentures.

• Class D (Orthodontic) serviceswith up to a 24-month waiting period.

In areas where dental plans do not

FEDVIP Nationwide Dental RatesBI-WEEKLY PREMIUM MONTHLY PREMIUM

Plan Name Option Rating Self Self Self Self Self SelfRegion Only Plus One & Family Only Plus One & Family

Aetna PPO High 1 $13.45 $26.90 $40.35 $29.14 $58.28 $87.43(In- and Out-of- 2 $14.79 $29.59 $44.38 $32.05 $64.11 $96.16

Network benefits) 3 $15.73 $31.47 $47.20 $34.08 $68.19 $102.274 $17.35 $34.69 $52.03 $37.59 $75.16 $112.735 $18.82 $37.65 $56.47 $40.78 $81.58 $122.35

GEHA PPO Standard 1 $9.24 $18.49 $27.73 $20.02 $40.06 $60.08(In- and Out-of- 2 $10.14 $20.27 $30.41 $21.97 $43.92 $65.89


GEHA PPO High 1 $14.66 $29.33 $44.02 $31.76 $63.55 $95.38(In- and Out-of- 2 $16.12 $32.23 $48.37 $34.93 $69.83 $104.80


MetLife PPO Standard 1 $8.56 $17.15 $25.72 $18.55 $37.16 $55.73(In- and Out-of- 2 $9.26 $18.52 $27.77 $20.06 $40.13 $60.17


MetLife PPO High 1 $15.32 $30.64 $45.92 $33.19 $66.39 $99.49(In- and Out-of- 2 $17.13 $34.27 $51.40 $37.12 $74.25 $111.37


United Concordia High 1 $13.77 $27.53 $41.30 $29.84 $59.65 $89.48PPO (In- and Out-of- 2 $15.78 $31.55 $47.33 $34.19 $68.36 $102.55


have adequate provider access, theplans must provide payment based onthe standard prevailing health carefees or pay benefits based on their planallowance.

NATIONWIDE DENTALPLANS

All nationwide plans include inter-national coverage.Aetna

Plan Type: Preferred Provider Or-ganization (PPO)

Aetna has a long-standing relation-ship with the federal government,serving as the governmentwide medicalindemnity carrier when the FEHBP wasfirst established. It is currently one ofthe larger HMO plans participating inthe FEHBP. It currently provides somedental services to all of its federal mem-bers as part of its medical plan.

• Aetna will provide a single High-option dental plan.

• In addition to the in-network ben-efits offered, Aetna’s dental plan willoffer out-of-network benefits based onthe American Dental Association feeschedule, using the same payment per-centages as for in-network benefits,

even in areas where access is adequate.• The Aetna plan has no deductibles.• Orthodontia will be covered after

a two-year waiting period for depend-ents up to age 19. There is a $1,500 perperson lifetime maximum on coveredorthodontia services.

• Aetna members will receive a freeadd-on discount vision plan.GEHA


Government Employees Health As-sociation, Inc. (GEHA) is the thirdlargest national health plan in theFEHBP. It has been in the programsince it was first established. Regardingdental coverage, for more than 10years, GEHA has offered a nationwidedental insurance plan, Dental Connec-tion Plus. GEHA’s Dental ConnectionPlus plan currently provides coverageto more than 57,000 federal employees.

• GEHA will provide two dental op-tions, High and Standard.

• Orthodontia will be covered aftera two-year waiting period for depend-ents up to age 19. There is a $1,500 perperson lifetime maximum on coveredorthodontia services.

• Members enrolled in GEHA’sdental plan options will receive thesame association benefits as otherGEHA plan members, includinghearing and vision discounts, at no ad-ditional cost.

• In addition to in-network benefits,GEHA’s dental plan will offer out-of-network benefits based on the Amer-ican Dental Association fee schedule,using the same payment percentagesas for in-network benefits, even inareas where access is adequate.MetLife


MetLife is the largest commercialdental insurance carrier in the UnitedStates, serving more than 60,000 com-panies. Ninety of the Fortune 500 com-panies have selected MetLife to ad-minister their dental benefits. MetLifehas a long-standing relationship withthe federal government.

• MetLife will provide two dental op-tions, High and Standard.

• Orthodontia will be covered aftera two-year waiting period for depend-ents up to age 19. There is a $1,500 (innetwork) per person lifetime max-


FEDVIP Regional Dental RatesBI-WEEKLY PREMIUM MONTHLY PREMIUM

Plan Name Option Rating Self Self Self Self Self SelfRegion Only Plus One & Family Only Plus One & Family

Humana/ High 1 $9.88 $19.75 $29.63 $21.41 $42.79 $64.20CompBenefits (In-Network 2 $10.13 $20.26 $30.39 $21.95 $43.90 $65.85

Benefits Only 3 $10.69 $21.39 $32.08 $23.16 $46.35 $69.51except for 4 $13.89 $27.77 $41.66 $30.10 $60.17 $90.26

emergency services) 5 $14.63 $29.26 $43.89 $31.70 $63.40 $95.10

GHI PPO High 1 $17.53 $35.04 $52.57 $37.98 $75.92 $113.90(In and Out-of-

Network Benefits)

Triple S Salud PPO High 1 $4.50 $9.00 $11.85 $9.75 $19.50 $25.68(In-Network Benefits Only

except for services renderedby orthodontists)

imum on covered orthodontia servicesunder the Standard option and a$3,000 per person lifetime maximumunder the High option.

• MetLife’s High Option nonortho-dontia annual maximum will increaseto $5,000.

• MetLife provides an out-of-net-work benefit at a lower percentage rate.

• MetLife will have a deductible forpreventative, intermediate and majorout-of-network services.

• MetLife will provide a benefit forimplants.United Concordia


United Concordia Companies, Inc.is one of the largest dental benefit ad-ministrators in the United States. It isa subsidiary of Highmark, a Pennsyl-vania licensee of the Blue Cross andBlue Shield Association. United Con-cordia has administered dental benefitprograms for Fortune 500 companies,the federal and state governments, andother well-known customers for morethan 30 years.

United Concordia serves the 1.7 mil-lion members in the TRICARE DentalProgram (TDP), the largest fully insureddental program in the world. TDP isavailable to family members of all activeduty uniformed personnel and to Se-lected Reserve and Individual Ready Re-serve members and their families.

• United Concordia will provide asingle High option dental plan.

• There is no deductible associatedwith United Concordia’s plan.


• Benefit design features additionalcoverage of implant prosthetics and

resin crowns.• The plan will provide an out-of-net-

work benefit at a lower percentage rate.

REGIONAL DENTAL PLANSTriple-S Salud


Service Area: Puerto RicoTriple-S is Puerto Rico’s largest

health insurance provider and hasbeen a health insurance carrier underthe FEHBP for more than 40 years. Ap-proximately 93 percent of federal em-ployees through the years havechosen Triple-S as their carrier. Triple-S is affiliated with the Blue Cross andBlue Shield Association.


• Triple-S does not offer an out-of-network benefit in areas that meet ac-cess standards.GHI


Service Area: All of New York state,as well as some ZIP codes in Pennsyl-vania, Connecticut and New Jersey.

GHI has a long-standing relationshipwith the federal government, as a re-gional health insurance carrier. Withmore than half a million covered pa-tients enrolled in GHI commercialdental programs, including 30,000FEHBP employees and covered de-pendents with limited preventive dentalcare through GHI medical plans, GHIhas had a significant New York regionalpresence in the dental marketplace.

• There is an out-of-network ben-efit even in areas that meet access,which pays benefits up to a schedulemaximum.

• Orthodontia will be covered aftera one-year waiting period for depend-ents up to age 19. There is a $2,000 perperson lifetime maximum on coveredorthodontia services.

• GHI’s nonorthodontia annualmaximum will increase to $2,000.Humana/CompBenefits


Service Area: All of Alabama,Arkansas, Arizona, California, Colorado,District of Columbia, Florida, Georgia,Illinois, Indiana, Kansas, Kentucky,Louisiana, Missouri, Mississippi, NorthCarolina, Ohio, Oklahoma, South Car-olina, Tennessee, Texas, Utah, Virginia,West Virginia and most of Maryland.

• Under Humana/CompBenefits,members will pay fixed co-paymentsfor each service, regardless of theamount of the charge.

• Humana/CompBenefits is theonly plan without a waiting period fororthodontia.

• Humana/CompBenefits has thehighest per person annual maximumbenefit of any FEDVIP provider:$10,000.

• No out-of-network benefit inareas that meet the access standards.




ClarificationThe story “Health Reform Law

Means Changes in FEHBP” onp. 42 in the November issue has beenconfusing for some members. Therequirement to enroll in family cov-erage mentioned in the fifth para-graph applies ONLY to those indi-viduals now enrolled in a self-onlyoption who want, under the new law,to cover their eligible children untilage 26.

P re mium s oun d ha s n eve r b e e n ea s ie r.

The Bose® Wave® music system.

Easy to use. A credit card-style remote lets you operate everything – a convenience you’ll appreciate when playing CDs or MP3 CDs, tuning into FM/AM radio or setting the clock and alarm. You can connect an additional audio source, so enjoying lifelike sound from your TV or MP3 player couldn’t be simpler. You also can add an optional Multi-CD Changer to enjoy your favorite music for hours. And with its small and elegant design, the Wave® music system fits in just about anywhere: your living room, kitchen, bedroom, wherever you want better sound.

Easy to try. Use our 30-day, risk-free trial to experience the Wave® music system in your home. Listen to your favorite music, try it in different rooms and hear what you’ve been missing.

Easy to order. Simply choose your favorite color: Platinum White, Graphite Gray or Titanium Silver. When you call, ask about making 12 easy payments, with no interest charges from Bose.* Order your system with the Multi-CD Changer by December 31, 2010, and save $100. When your Wave® music system arrives, just take it out of the box, plug it in and slip in your favorite CD. Then sit back and experience the kind of performance that has made Bose the most respected name in sound. Now what could be easier than that?

Selecting a sound system traditionally has required a difficult compromise. With conventional systems, if you make premium sound your priority, you have to deal with large speakers, stacks of equipment and plenty of wires to hook them up. Opt for small size and simplicity, and you sacrifice the sound.

Meet the Bose Wave® music system.It delivers all the pleasures of premium sound from a compact system without the traditional compromises or limitations. Rich Warren of the News-Gazette says it “will flat out seduce you.” And Forbes FYIreports that “you’ll think you’re listening to a…sound system that costs five times more.”

Easy to enjoy. The Wave® music system provides a room full of Bose quality sound from an all-in-one system that requires little space and is delightfully simple to use. There are no wires to hook up, no confusing buttons or dials to adjust. Just plug it in and hear the kind of sound that you may have only thought possible from a much larger system. In fact, David Novak, the Gadget Guy, says, “It can easily replace whatever component system you currently have.”

*Bose payment plan available on orders of $299-$1500 paid by major credit card. Separate financing offers may be available for select products. See website for details. Down payment is 1/12 the product price plus applicable tax and shipping charges, charged when your order is shipped. Then, your credit card will be billed for 11 equal monthly installments beginning approximately one month from the date your order is shipped, with 0% APR and no interest charges from Bose. Credit card rules and interest may apply. U.S. residents only. Limit one active financing program per customer. ©2010 Bose Corporation. Patent rights issued and/or pending. The Wave® music system’s distinctive design is also a registered trademark of Bose Corporation. Financing and savings offers not to be combined with other offers or applied to previous purchases, and subject to change without notice. If the Wave® music system is returned, the Multi-CD Changer must be returned for a full refund. Offers are limited to purchases made from Bose and participating authorized dealers. Offer valid 11/1/10-12/31/10. Risk free refers to 30-day trial only, requires product purchase and does not include return shipping. Delivery is subject to product availability. Quotes reprinted with permission: Thomas Jackson, Forbes FYI, Winter/04.

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Call TruHearing for: Free screening (you must call TruHearing to schedule your appointment)

Free copy of “The Guide to Better Hearing” DVD

Free batteries for 1-year with purchase

$25 rebate per hearing aid unit on your fi rst purchase under this TruHearing discount program

How do you maximize your FEP Service Benefi t Plan

hearing aid benefi t?

(877) 360-2432

TruHearing is a national vendor that provides discounts on hearing aids through the Blue365 program. Here is an ex-ample of your potential savings for a top technology hearing aid with 16 channels, 5 memories, noise & wind reduction and speech enhancement features:

Average retail price: $2,450

TruHearing (private label) price through Blue365: $1,995FEP Service Benefi t Plan covered benefi t: $1,000Your out-of-pocket cost: $995*

TruHearing offers 64 models – both brand name and private label – from four of the leading manufacturers: Siemens, ReSound, Unitron and Rexton. Discounts of 30-60% vary depending on manufacturer and model.

TruHearing contracts with 1,400 hearing professional nation-wide. Contact TruHearing to schedule a free hearing screening with a contracted hearing professional near you.

* Hearing aids are a covered benefi t under the FEP Service Benefi t Plan for adults age 22 and over, limited to $1,000 per hearing aid per ear per 36-month period. Children, up to age 22, are limited to $1,000 per ear per calendar year. Member cost sharing applies.

The Blue Cross and Blue Shield Association is an association of independent, locally operated, licensed Blue Cross and Blue Shield companies.

Blue365® offers access to savings on items that you may purchase directly from independent vendors, which may be different from items that are covered under your Service Benefi t Plan policy or any other applicable federal healthcare program. For hearing aids, certain hearing tests, and vision services, please remember to use your Service Benefi t Plan benefi ts. To fi nd out what is covered under your policy, contact the Service Benefi t Plan. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. In addition, they are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Service Benefi t Plan’s Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefi t Plan, nor BCBSA, or any local Blue company recommends, endorses, warrants or guarantees any specifi c Blue365 vendor or item. The Service Benefi t Plan reserves the right to change, modify, or terminate any items and vendors made available through Blue365, at any time.

Add the savings of the Blue365® discount program!(TruHearing is a BCBS PPO Provider)

®

Call TruHearing for: Free screening (you must call TruHearing to schedule your appointment)

Free copy of “The Guide to Better Hearing” DVD

Free batteries for 1-year with purchase

$25 rebate per hearing aid unit on your fi rst purchase under this TruHearing discount program

How do you maximize your FEP Service Benefi t Plan

hearing aid benefi t?

(877) 360-2432

TruHearing is a national vendor that provides discounts on hearing aids through the Blue365 program. Here is an ex-ample of your potential savings for a top technology hearing aid with 16 channels, 5 memories, noise & wind reduction and speech enhancement features:

Average retail price: $2,450

TruHearing (private label) price through Blue365: $1,995FEP Service Benefi t Plan covered benefi t: $1,000Your out-of-pocket cost: $995*

TruHearing offers 64 models – both brand name and private label – from four of the leading manufacturers: Siemens, ReSound, Unitron and Rexton. Discounts of 30-60% vary depending on manufacturer and model.

TruHearing contracts with 1,400 hearing professional nation-wide. Contact TruHearing to schedule a free hearing screening with a contracted hearing professional near you.

* Hearing aids are a covered benefi t under the FEP Service Benefi t Plan for adults age 22 and over, limited to $1,000 per hearing aid per ear per 36-month period. Children, up to age 22, are limited to $1,000 per ear per calendar year. Member cost sharing applies.

The Blue Cross and Blue Shield Association is an association of independent, locally operated, licensed Blue Cross and Blue Shield companies.

Blue365® offers access to savings on items that you may purchase directly from independent vendors, which may be different from items that are covered under your Service Benefi t Plan policy or any other applicable federal healthcare program. For hearing aids, certain hearing tests, and vision services, please remember to use your Service Benefi t Plan benefi ts. To fi nd out what is covered under your policy, contact the Service Benefi t Plan. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. In addition, they are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Service Benefi t Plan’s Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefi t Plan, nor BCBSA, or any local Blue company recommends, endorses, warrants or guarantees any specifi c Blue365 vendor or item. The Service Benefi t Plan reserves the right to change, modify, or terminate any items and vendors made available through Blue365, at any time.

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If you are covered by a fee-for-service plan under the FederalEmployees Health Benefits Pro-gram (FEHBP), save this article

for future reference. We recommendthat you refer to it whenever you fillnew prescriptions or refill current pre-scriptions. We also recommend thatyou keep this information with thecurrent version of your health planbrochure so that you also can refer tothe plan’s specific rules on prescriptiondrugs.

Prescription drugs are importantbecause they prolong life and en-hance the quality of life. Be sure to tellyour doctor about all of the medica-tions that you take. When yourdoctor writes prescriptions for you,verify whether the prescription iswritten for 30, 60 or 90 days, with (orwithout) refills. If the doctor intendedto write a prescription for 90 dayswith refills but actually wrote it for 30days with refills, FEHBP plans’ mailservice pharmacies will fill the pre-scription as written and charge fullco-payments for the less-than-90-daysupply of prescription drugs. Checkyour prescriptions before you leaveyour doctor’s office.

Prescriptions can be filled by healthplans through plans’ preferred retailpharmacies, nonpreferred retail phar-macies and a plan’s mail order service.The plans charge coinsurance and/orco-payments for prescription drugswhen they are purchased through anyof these sources. Some plans provideprescription drug plan benefits even ifthe plan’s annual deductible is not met.Other plans may have a specific annualdeductible that must be met before theplan begins to pay prescription drugbenefits.

Health plans will substi-tute available genericequivalent drugs for brandname drugs for prescrip-tions submitted to localpharmacies and mail orderservices, unless the pre-scribing physician indi-cates that the patient is toreceive only the brandname medication. This isusually accomplishedwhen the physician writes the pre-scription for the brand name drugand indicates that the prescriptionshould be “dispensed as written”(DAW).

To keep prescription drug benefitcosts down for the plans, some are re-ducing out-of-pocket costs forgeneric drugs and raising them forbrand name drugs. This will makeprescription drugs more costly for en-rollees who need life-saving and life-extending medications, which areusually brand name specialty drugs.You also will see that some planshave capped the yearly amount ofout-of-pocket expenses for prescrip-tion drugs to keep enrollees whoneed the expensive brand namedrugs from possible financial hard-ship.

Enrollees who are covered byMedicare Part A and Part B may notethat some plans waive their own de-ductibles, coinsurance and co-pay-ments for hospital and medical serv-ices. But these waivers do not apply tothe prescription drug co-paymentsand/or coinsurance. While there areno plans that waive prescription drugcoinsurance and co-payments forMedicare-eligible enrollees, someplans will charge lower coinsurance

and co-payment rates for enrolleeswho are covered by Medicare Part Aand Part B. In addition, there are someplans that charge Medicare enrolleesthe same coinsurance and co-pay-ments as non-Medicare-eligible en-rollees in one option, while chargingMedicare enrollees smaller coinsur-ance and/or co-payment amountsthan non-Medicare enrollees in theplan’s other option.

Usually, patients will fill orders forshort-term prescription drugs, such asantibiotics, at the local pharmacy.They will use mail order services formaintenance drugs, such as medica-tions used to treat high blood pres-sure or high cholesterol, etc. It is wiseto compare the prices of medicationsat the local pharmacies with the costof obtaining the medications throughmail order services. Many times, thecost of filling a prescription at a localpharmacy is less than the co-paymentfor using a mail order service. Someplans charge the full mail service co-payment even though the actual costof the prescription drug is less thanthe co-payment; other plans onlycharge the cost of the prescriptiondrug if the actual cost of the drug isless for the mail service pharmacythan the co-payment. In other words,

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do not expect the mail service phar-macy to charge less than the co-pay-ment because the local pharmacy hasthe drug at a lower price.

Some plans have limitations on theamount and frequency of dispensingprescription drugs. Plan membersshould be aware of those limitations

and should also be aware of plansthat have prior-approval require-ments before a prescription can befilled. Often, it is no longer simply amatter of getting a signed prescriptionfrom a doctor. And the general rulefor most plans is that refills can be ob-tained when 75 percent of the current

supply is used up. With some plans’co-payments for brand name drugsincreasing on January 1, check yourcurrent prescription level to see if youcan order a refill before the end of theyear and avoid any increase.


Standard OptionSOURCE PATIENT PAYSPreferred Retail Pharmacy The patient pays 20 percent of the plan allowance for Tier 1 (generic) drugs, and

30 percent for Tier 2 (preferred brand name), Tier 3 (nonpreferred brand name)and Tier 4 (specialty) drugs.

Non-Preferred Retail Pharmacy The patient pays 45 percent of the plan allowance, plus any difference betweenthe plan’s allowance and the amount of the pharmacy bill.

Mail Service Prescription Drug For doctor prescriptions of more than 21 days up to 90 days, patient will pay $10Program for a generic prescription drug and $70 for the first 30 preferred brand name,

nonpreferred brand name and specialty prescriptions filled per calendar year; $50 per brand name prescription/refill thereafter.

Sources other than the Preferred: 15 percent of the plan allowance; participating/member: 35 percent of Mail Service Program, a the plan allowance; nonparticipating/nonmember: 35 percent of the planRetail Pharmacy or an allowance plus any difference between the allowance and the billed amount.Internet Pharmacy (Calendar-year deductible applies to all of the above.)

NOTE: Enrollees need to be aware of the plan's prior-approval program for certain prescription drugs. Review theplan's brochure for more information. The plan also has a Patient Safety and Quality Monitoring Program (PSQMP).Under PSQMP, certain drugs must be recertified by the prescribing physician after the initial fill has been used up.

Basic OptionSOURCE PATIENT PAYSPreferred Retail Pharmacy For a first-time purchase of a new prescription up to a 34-day supply, the patient

(including Preferred Internet) pays a co-payment of $10 for Tier I (generic) drugs; a co-payment of $40 for Tier 2 (preferred brand name) drugs; a co-payment of 50 percent of the plan allowance for Tier 3 (nonpreferred brand name) drugs; and a co-payment of $40 for Tier 4 (specialty) drugs. For refills up to a 90-day supply, the patient pays a $10 co-payment for each 34-day supply of Tier I (generic) drugs – or a $30 co-payment for a 90-day supply; a $40 co-payment for each 34-day supply of Tier 2 (preferred brand name) drugs – or a $120 co-payment for a 90-day supply; and 50 percent of the plan allowance for a 34-day supply of Tier 3 (nonpreferred brand name) drugs, with a minimum payment of $50 – or 50 percent of the cost, with a minimum payment of $150 for a 90-day supply. For Tier 4 (specialty) drugs, the patient pays a $40 co-payment for a 34-day supply and $120 for a 90-day supply.

Non-Preferred Retail Pharmacy Patient pays all charges.Mail Service Prescription No benefit.Sources Other Than Retail Preferred: 30 percent of the plan allowance; 100 percent for participating/member

Or Internet Pharmacies or nonparticipating/nonmember.

Blue Cross and Blue Shield (BC/BS)



High OptionSOURCE PATIENT PAYSNetwork Retail Pharmacy The patient pays the following for the initial fill and the first refill (not to exceed a

30-day supply): $5 for a generic drug, 25 percent for a single-source* brand name drug up to a maximum of $150 for up to a 30-day supply (refills for more than a 30-day supply will be 25 percent of the single source brand name drug up to the max-imum of $350), and $5 plus the difference in the cost of a generic drug and the brandname drug for multi-source** brand name drugs. For all subsequent refills, the patient pays the greater of 50 percent of the cost of the drugs or the amount described above.

Non-Network Retail Pharmacy The patient pays the following for the initial fill and the first refill (not to exceed a 30-day supply): $5 for a generic drug, 25 percent for a single-source* brand name drug up to a maximum of $150 for up to a 30-day supply (refills for more than a 30-day supply will be 25 percent of the coinsurance up to the maximum of $350), and $5 plus the difference in the cost of a generic drug and the brand name drug for multi-source** brand name drugs. For all subsequent refills, the patient pays the greater of 50 percent of the cost of the drugs or the amount described above.

Medco By Mail All co-payments are for up to a 90-day supply. The co-payment is $15 for a generic drug, 25 percent of the cost of single-source* brand name drugs, up to a maximum of $350 for up to a 90-day supply; $15 plus the difference in the cost of the generic drug and the brand name drug for multi-source** brand name drugs.

When Medicare Part A and Part B are primary for the enrollees – High OptionSOURCE PATIENT PAYSNetwork Retail Pharmacy The patient pays for the initial fill and the first refill (not to exceed a 30-day supply): $5

for a generic drug, 20 percent for a single-source* brand name drug up to a maximum of $150 for a 30-day supply (refills for more than a 30-day supply will be 20 percent of the single source brand name drug up to the maximum of $350), and $5 plus the differ-ence in the cost of the generic drug and the cost of the brand name drug for multi-source** brand name drugs for the initial fill and the first refill. For all subsequent re-fills, the patient pays the greater of 50 percent of the cost of the drugs or the amount described above.

Non-Network Retail Pharmacy The patient pays for the initial fill and first refill: $5 for a generic drug, 20 percent for asingle-source* brand name drug up to a maximum of $150 for a 30-day supply, and $5 plus the difference in the cost of the generic drug and the cost of the brand name drug for multi-source** brand name drugs. For all subsequent refills, the patient pays the greater of 50 percent of the cost of the drugs or the amount described above.

Medco By Mail The patient pays for up to a 90-day supply: $10 for a generic drug, 15 percent for a single-source* brand name drug up to a maximum of $350 for up to a 90-day supply,and $10 plus the difference in the cost of the generic drug and the brand name drug for multi-source** brand name drugs.

*A single-source brand name drug is a drug for which there is no approved generic equivalent drug. **A multi-source brand name drug is a drug for which there is an approved generic equivalent. If the patient or doctor chooses a brand name drug for which a generic drug exists, the patient will pay the generic drug co-payment and the difference between the cost of the brand name drug and the cost of the generic drug, unlessthe patient’s physician has provided clinical support for the necessity of prescribing the brand name drug over thegeneric drug. This will require preauthorization for the substitution of the brand name drug. GEHA has prior-approval and quantity-allowances programs for certain prescription drugs. Check with the plan to learn more about these programs and how they apply to you.




High OptionSOURCE PATIENT PAYSNetwork Retail Pharmacies and The patient pays $8 generic/25 percent of brand name with an $8 minimum

Network Retail–Medicare coinsurance.Non-Network Retail Pharmacies The patient pays 50 percent of the cost with an $8 minimum coinsurance.

and Non-Network Retail–Medicare

Mail Order and The patient pays $15 per generic/25 percent of brand name with a $12 minimum Mail Order Medicare coinsurance.

Consumer-Driven Option SOURCE PATIENT PAYSNetwork Retail Pharmacies The patient pays a 25-percent charge with a minimum of $10 per prescription.

and Network Retail–MedicareMail Order and The patient pays a 25-percent charge with a minimum of $15 per prescription.

Mail Order–Medicare

NOTE: Prescription drug benefits have a maximum per-prescription limit of $200 for a 30-day supply, $400 for a 60-day supply and $600 for a 90-day supply.

American Postal Workers Union (APWU) Health Plan

Standard Option (all enrollees, including Medicare-eligible enrollees)SOURCE PATIENT PAYSNetwork Retail Pharmacy The patient pays (for the initial amount prescribed, for up to a 30-day supply): $5

generic/50 percent up to a $200 maximum for brand name. Brand name fills over a 30-day supply are subject to 50 percent coinsurance up to a maximum of $500.

Non-Network Retail Pharmacy The patient pays (for a 30-day supply): $5 generic/50 percent up to a $200 maximumfor brand name; 50 percent coinsurance up to $500 for fills greater than 30 days and any difference between the plan’s allowance and the cost of the drug.

Medco By Mail The patient pays for up to a 90-day supply: $15 generic/50 percent brand name up toa $500 maximum.

High Deductible Health Plan Option*

SOURCE PATIENT PAYSNetwork Retail Pharmacy For a 30-day supply, the patient pays 25 percent of the plan allowance. Non-Network Retail Pharmacy The patient pays 25 percent of the network price and any difference between the

plan allowance and the cost of the drug.Medco By Mail The patient pays 25 percent of the plan allowance.

*Must meet the plan’s deductible



Presenting NARFE?s

Limited Edition 90th Anniversary Book

Order your copy of NARFE’s 90th Anniversary Book today!

Clip and mail to: NARFE 90th Book, 606 N. Washington Street, Alexandria, VA22314-1914

Name __________________________________________________________________

Address _______________________________________________________________

City_________________________________________State______ZIP___________

Member ID# (As it appears on NARFE magazine label)________________

� Charge to my credit card� MasterCard � Visa � Discover � AMEX

Card #_________________________________________________________________

Exp. Date________ / _______(mm) (yy)

Name on card (print)__________________________________________________

Price includes shipping & handling

Number of Books:

____ x $10 = ___________

Tax (if applicable) = ________Virginia residents:

Add 5% tax ($.50 per book)

Total cost =_____________

MAIL ORDER ONLY—NO PHONE ORDERS—make checks payable to NARFE

Only $10

NARFE’s history is closely tied to the origins ofthe civil service system. Since the Association’shumble beginnings in 1921, when 14 retired civilservants met to discuss the economic plight offederal retirees, NARFE has made remarkableachievements in preserving and improving bene-fits for federal employees, retirees and their sur-vivors.

NARFE’s 90th Anniversary book chronicles theAssociation’s continuous fight to protect yourearned benefits. Find out just how vital NARFE’sefforts have been throughout its 90 years of serv-ing you. Purchase your copy of NARFE’s 90thAnniversary book and learn about NARFE’sremarkable achievements – and the Association’scontinuing work on your behalf.


Mail Handlers Benefit Plan

Standard OptionSOURCE PATIENT PAYSNetwork Retail Pharmacies The patient pays $10 per generic drug, 30 percent of the plan allowance per

Or Prescriptions Filled by preferred brand name drug, 50 percent per nonpreferred brand name drug and Foreign Pharmacies $150 per specialty drug. With Medicare, the patient pays the same co-payments.

Non-Network Retail Pharmacies/ The patient pays 50 percent of the plan’s allowance for the prescription and any dif-Paper Claims for Prescriptions ference between the plan’s allowance and the amount billed by the non-network Filled at a Retail Pharmacy pharmacy.

Mail Order and The patient pays $15 per generic, $80 per preferred brand, $120 per nonpreferredMail Order–Medicare brand name drug and $400 per specialty drug.

Value OptionSOURCE PATIENT PAYSNetwork Retail Pharmacies The patient pays $10 per generic drug/50 percent of the plan’s allowance for all others.

Or Prescriptions Filled byForeign Pharmacies

Non-Network Retail Pharmacies/ The patient pays all charges.Paper Claims for PrescriptionsFilled at a Retail Pharmacy

Mail Order The patient pays $30 per generic drug/ 50 percent of the plan’s allowance for all others.

NOTE: Medicare retail and mail-order benefits will be paid as above.

High Deductible Health Plan Option*SOURCE PATIENT PAYSNetwork Retail Pharmacies The patient pays $10 per generic drug, $25 per preferred brand name drug and $40

Or Prescriptions Filled by per nonpreferred brand name drug for up to a 30-day supply. Foreign Pharmacies

Non-Network Retail Pharmacies Non-network pharmacies are not covered. Mail Order and The patient pays $20 per generic drug, $50 per preferred brand and $80 per non-Medicare Retail and Mail Order preferred brand name drug for up to a 90-day supply.

* Must meet the plan’s deductible of $2,000 for self-only; $4,000 for family.

SOURCE PATIENT PAYSNetwork Retail Pharmacies The patient pays 20 percent of the cost for generic, 30 percent for brand name.Netwrk Retail Pharm.–Medicare The patient pays 10 percent of the cost for generic, 20 percent for brand name.Non-Network Retail Pharmacies The patient pays 45 percent of the plan’s allowance for the prescription, and the

difference between the plan’s allowance and the billed amount. Non-Network Retail Pharmacies– The patient pays 45 percent of the plan's allowance, and the difference between the

Medicare plan’s allowance and the billed amount.Mail Order The patient pays $8 per generic/$43 per brand name drug for up to a 60-day supply.

The patient pays $12 per generic/$65 per brand name drug for up to a 90-day supply.The patient pays $5 for NALCSelect generic for a 90-day supply.The patient pays $7.99 for NALCPreferred generic drugs for up to a 90-day supply.

Mail Order–Medicare The patient pays $7 per generic/$37 per brand name drug for up to a 60-day supply.The patient pays $10 per generic/$55 per brand name drug for up to a 90-day supply.The patient pays $4 for NALCSelect generic for a 90-day supply.The patient pays $4 for NALCPreferred generic for up to a 90-day supply.

National Association of Letter Carriers (NALC) Health Benefit Plan



NARFE MEMBERSHIP APPLICATIONFor Active and Retired Federal Employees www.narfe.org

JoinJoin NARFENARFE Today!Today!

• Complete the application below. • Enclose payment information, bill pay,check or money order payable to NARFE,or request to be billed.

• Or go to our Web site at www.narfe.org. • Or call us at 800-627-3394 and join today!

*Prior to October 1, 1987

Membership is open to civilians in any agency ofthe federal or D.C.* governments including:• Retirees • Active federal employees • Spouses and former spouses of active and retired federal employees

• Former employees eligible for deferred annuity• Survivors of those eligible to join NARFE

Who can join? To apply:

Enrollment includes membership in a local chapter and the nationalassociation, plus a subscription to NARFE’s monthly publication, NARFE magazine.

1.

2. � Also enroll my spouse __________________________

3. � Please enroll me in NARFE chapter ______________

4. $33 x =__________ __________ __________Membership Fee # of People Total

Per Person Enrolling Payment

� Total payment (check, bill pay or money order payableto NARFE)

� Bill me (Membership starts when payment is received)� Charge to my credit card

The first year membership fee includes national and chapter dues.

Credit Card Information:Card type: � MasterCard � VISA

� Discover � AMEX

Card no. ___________________________________________

Expiration Date ________________

Name on Card (Print) ________________________________

Signature ____________________________ Date __________

Choose all that apply: � Retiree� Spouse� Survivor

� Active employee� Former spouse� Former employee

NARFE Member Records606 N. Washington St.

Alexandria, VA 22314-1914Fax: 703-838-7783

Full Name: Mr./Mrs./Miss/Ms.

Street Address Apt./Unit

City/State/ZIP

Phone Number

E-mail Address

Date of Birth

Spouse’s Date of Birth (if applicable)

Recruiter’s Membership and Chapter Number

Contact Information:

(MM) (YY)

1Q

MAIL TO:

full name


FEHBP INTORETIREMENTQUESTION: I am under the CivilService Retirement System (CSRS),and my wife is a Federal EmployeesRetirement System (FERS) em-ployee. She is currently coveredundermy Federal Employees Health Bene-fits Program (FEHBP) plan.Prior toretirement,we want to have her en-roll in her own FEHBP plan. Will shebe able to continue coverage for bothof us when she retires? Would thecost be about the sameas if I hadpro-vided our coverage as a retired CSRSemployee?Response: Your wife will be able to con-tinue her FEHBP enrollment if she hasbeen either covered as a dependentunder your enrollment or enrolled her-self continuously for the five years im-

mediately preceding her retirement.There is no difference in the premiumspaid by employees or retirees coveredby the CSRS and FERS.

TRICARE&CONTINUOUSCOVERAGE RULE

QUESTION: I am retiring on January30, 2011. I retired from the militaryandhavebeenusingmy TRICAREForLife benefits. I recently received aletter from my doctor stating that hewill no longer accept TRICARE orMedicare.I want to carry my FederalEmployees Health Benefits Program(FEHBP) plan into retirement.Doesmy use of TRICARE qualify for thefive-year rule?Response: Yes. Continuous coverageunder the military TRICARE systemduring your years preceding retirementcounts the same as coverage under theFEHBP. But you, nevertheless, must beenrolled in the FEHBP prior to your re-tirement, or you will not be able to haveFEHBP coverage as a retiree.

SPOUSE FEHBPCOVERAGEQUESTION:I plan to re-tire from the federalgovernment in Jan-uary 2011 after 42years of service.Cur-rently, my wife is in-sured through her em-ployer. Her health insur-ance will not carry over intoretirement,and we want to addher to my retirement health insur-ance. What do I need to do?Response: As an employee, you canchange to family enrollment duringthis Open Season to have her coveredwhen you retire in January. You mustdo that through your agency. Thisyear’s federal benefits Open Seasonbegan November 8 and runs throughDecember 13.

FEHBPCOVERAGE &SPOUSE’S DEATH

QUESTION: In order to carry myhealth insurance coverage into retire-ment, I understandthat Imusthaveatleastfiveyearsof continuouscoverageunder the Federal Employees HealthBenefits Program (FEHBP) or havebeen covered since my first opportu-nity to enroll. If a federal employee iscovered under his or her spouse’sFEHBPplan,and if theenrolledspousedies,is the employee still covered?Response: If the deceased spouse is en-rolled in a family option, and the em-ployee is eligible for a survivor’s annuity,then the employee would continue tobe covered by the FEHBP. However, itwould be financially advantageous forthe employee to enroll on his or herown in the event the employee lost cov-erage under another’s enrollment be-cause active employees can take advan-tage of premium conversion.

MEDICAREQUESTION: WhydoesMedicarebe-come your primary insurer when youreach age 65? I am an active federalemployee with coverage under the

FederalEmployeesHealthBenefits Program(FEHBP)butplantore-tire soon.

R e s p o n s e : T h ereason that Medi-care becomes pri-mary is that the

law requires it. The law applies toanyone who is retired and enrolled inMedicare. It does not apply to those age65 or older who are still employed. Inthose cases, any private or public healthinsurance they have remains primaryand Medicare secondary. However,while you have already paid forMedicare Part A (Hospital Insurance)through payroll deduction, whether or

NOTE: The following Questions &Answers were compiled by Retire-ment Benefits Service Departmentstaff. These are real questionsreceived by the Department andreal answers, based on themembers’ personal circumstances.The answers are not universal andmay include information that isrelevant to the correspondent’sparticular situation.NARFE does notprovide legal advice or assistance,does not provide financial planningadvice or assistance, and does notprovide tax advice or assistance. Forlegal, financial planning or taxadvice/assistance,NARFE recom-mends members contact anattorney, financial planner or certi-fied public accountant/tax adviser.

Questions & Answers

QA&ACTIVEEMPLOYEES


not you enroll in Part B (Medical Insur-ance) is optional. If you don’t enroll inPart B, your FEHBP plan will provideyour medical coverage. Check yourFEHBP plan brochure on how yourclaims will be handled in either case.

TAX ON PREMIUMS?QUESTION: I heard that the newhealthcare lawrequiresall federalem-ployees to pay income tax on the gov-ernment-paid portion of our healthcare plan’s cost.Is this true?Response: No. What is true is that, be-ginning in 2018, a 40-percent tax willbe levied annually on the health insur-ance carrier for plans that cost morethan $10,200 per individual or $27,500per family. The tax will be on any cov-erage that exceeds the limit. Those fig-

ures will be based on the combinedcontributions of enrollees and the gov-ernment. To get you accustomed towhat those total costs are, beginning in2011, they will be included on W-2forms for employees and 1099-R formsfor retirees.

RE-ENROLL IN FEHBP?QUESTION:I am age 36 and plan toretire at age 40.I will have 10 years offederal service, during which time Iwill have been continuously enrolledin the Federal Employees HealthBenefits Program (FEHBP). I knowthat I will not be eligible for my an-nuity until around age 60, whichmeans Iwill not beeligible for FEHBPcoverage from age 40-60. However,once I reach age 60 and start col-

lecting my annuity,will I be eligible tore-enroll in theFEHBP,or do I have tobe working up until the time I am eli-gible for my annuity?Response: Under the scenario youhave laid out, no, you won’t be able tore-enroll. No one who leaves govern-ment and later applies for a deferredannuity at age 62 is eligible to re-enrollin the FEHBP. But you are most likelyunder the Federal Employees Retire-ment System (FERS), and, if you meetthe minimum retirement age + 10 re-quirements when you leave govern-ment, you may elect a “postponed” an-nuity. In that case, if you were continu-ously covered for the five yearsimmediately prior to your retirement,you may then re-enroll when you de-cide to start drawing your annuity.

BUYOUT PAYBACK?QUESTION:I plan to retire this yearand have accepted a buyout from myorganization. I need to continueworking part time. I know that Icannot seek employment with an-other federal agency or contractorwithin five years without having torepay the buyout money. Does thisrule apply to all other jobs, such asworking for public school systems orstate government offices?Response: The repayment requirementonly applies to federal jobs. It doesn’tapply to employment with state or localgovernments, or in the private sector.

FERS SUPPLEMENTQUESTION:I am under the FederalEmployees Retirement System(FERS).Why does a Social Securityrule apply to our retirement? I haveworked for more than 30 years,and Ishould receive my retirement checkwithout any penalties or limits.Response: Since your FERS annuitycannot be reduced if you continue towork, you must be talking about theFERS special retirement supplement.The FERS supplement approximatesthe Social Security benefit you earnedwhile employed under FERS. As such, itfollows the same rules that apply to aSocial Security benefit. If you exceedthe Social Security earnings limit, yoursupplement will be reduced by $1 forevery $2 you earn over the limit. In2010, the earnings limit is $14,160.

SURVIVOR’S BENEFITSQUESTION: My husband and I areboth30-yearCivil ServiceRetirementSystememployees.Wehaveattendedseveral retirement seminars and heardiffering views as to whether weshouldboth choose full survivor’s ben-efits at time of retirement.Is there ageneral rule on this issue?

Response: The Civil Service RetirementSpouse Equity Act of 1984 requires theprovision of a full survivor’s annuity toyour spouse unless you agree in writingto provide less than that (or nothing atall). As you suspected, there is no gen-eral rule guiding a decision in makingthis election. You both will have to es-timate your future financial needsshould your spouse die and base yourdecision on that.

USE OR LOSE LEAVEQUESTION: I am under the CivilService Retirement System (CSRS)and plan to retire on January 1,2011.Will I get paid for my annual leave if Iretire on this date,or do I have to re-tire before January 1 so I can get paidfor any use or lose annual leave.Response: You will be paid for your ac-crued annual leave if you retire on Jan-uary 1, 2011. You have up until theend of the first pay period in 2011 touse any excess annual leave. That willprobably be January 2. You’ll be on theannuity roll effective January 2, andyour first month’s annuity will bepayable at the end of the month underCSRS rules.

MILITARYACADEMY CREDITQUESTION: I am receiving retire-ment pay after 27 years in theArmy.Iwill soonbeobtaining aGSposition infederal civilian service.Does my fouryears of time as a student at the U.S.Military Academy at West Pointcount as creditable time for leave ac-crual purposes?

Response: Yes. Service as a cadet at theU.S. Military Academy is creditable timeand, therefore, can be used to base an-nual leave accrual as a civilian em-ployee.

DISABILITY RETIREE SURVEYSQUESTION:In the September issueof NARFE magazine’s “Questions &Answers” section, one of the re-sponses stated that individuals re-ceivingadisability annuity couldbere-stored to earning capacity if theyearned80percentormoreof the cur-rent pay for their previous position;but after age 62,there would be no ef-fect on their disability retirement,nomatter how much was earned.Shouldn’t the response have stated atage 60,not 62?Response: You are correct. After age 60,the Office of Personnel Managementnolonger surveys disability retirees forearnings limitation purposes. Thanksfor pointing out the mistake.

WEPQUESTION: My father worked forthe U.S. Postal Service for 36 years.Due tohealth issues,he retiredondis-ability,withhisannuitycommencing inSeptember 1991.His wife died in Juneand was receiving Social Security.When he applied for survivor’s bene-fits, it took several months for the Of-fice of Personnel Management to getback to the Social SecurityAdminis-tration (SSA).SSA made the decision


NARFE SERVICE OFFICERS are available to answer questions and toassist in helping with a variety of benefit matters.Check your chapter newsletterfor the name and phone number of your service officer.Call NARFE toll-free at

800-456-8410for the nearest service officer.NARFE Service Centers are also available in someareas.Use the Service Center listings on the NARFE Web site,www.narfe.org.

Questions & Answers

RETIREES

that the survivor’s benefits fell underthe Windfall Elimination Provision(WEP).Wearenot surewhythisdeci-sion was made.My father was eligibleto receive a disability pension prior toDecember 1982,and his wife was self-employed with net earnings generallyequal to his. Is he under theWEP be-cause he wasn’t eligible to receive aregular pension before December1982?Response: The WEP applies to anyonewho receives a disability annuity from aretirement system into which he or shedidn’t pay Social Security taxes andbegan receiving that annuity after 1985.

You can get detailed information onthe WEP by calling the SSA at 410-965-2039andrequestingacopyof SSApub-lication05-10045,Windfall EliminationProvision. Youalsocandownloadacopyby going to the NARFE Web site,www.narfe.org, and clicking on Retire-ment and Insurance Benefits in the leftpanel of the Main Home Page.

TAX ONANNUITIES?QUESTION:I am a volunteer helpingretirees with their income taxes.Onform 1099-R, Box 2A, the taxableamount is unknown.How do I deter-mine how much of the annuity is tax-able?Response: While most of the annuitywill be taxable, a portion will not. Tofind out how much of it will be tax-free,go to the IRS Web site at www.irs.govand download a copy of IRS publication721, Tax Guide to U.S. Civil Service Re-tirement Benefits.

GPOQUESTION: I understand that, be-cause I am a Civil Service RetirementSystem (CSRS) retiree, if my spouseshoulddie,I cannotgetanyofhisSocialSecurity. Why this is the case?Response: Because you will be re-

ceiving an annuity from a retirementsystem in which you didn’t pay SocialSecurity taxes, you will be subject to theGovernment Pension Offset (GPO). TheGPO will reduce any spousal Social Se-curity benefit to which you may be en-titled by $2 for every $3 you receive inyour CSRS annuity.

While bills have been introduced inCongress to modify or eliminate theGPO, no action has as yet been takento enact them into law.

COMMON-LAWWIFEQUESTION: My wife died 15 yearsago.HowdoIassignsurvivor’sbenefitsto my new common-law wife?Response: For retirement-related bene-fits, you can submit new designation ofbeneficiary forms: SF 2823 for FederalEmployees’ Group Life Insurance; SF

2808 for the Civil Service RetirementSystem; or SF 3102 for the Federal Em-ployees Retirement System; and TSP-3foryourThrift SavingsPlan investments.

To elect a survivor’s benefit for aspouse acquired after retirement, youmust notify the Office of PersonnelManagement (OPM) within two yearsafter the remarriage. By regulation, amarriage is one that is recognized inlaw of the jurisdiction with the mostsignificant interest in the maritalstatus. There are specific requirementsfor electing a spouse you claim as acommon-law spouse. OPM will pro-vide you with information on the doc-umentation that is required when youcontact OPM. Also, some of these ben-efits may only be available in a statethat recognizes common-law mar-riages. Check with OPM to make sure



that your state is one of them.

SURVIVOR’S BENEFITSQUESTION:My wife was previouslymarried,and a portion of her retire-ment was going to her ex-husband.After we married, I signed a papergiving him the full survivor’s annuity ifshe were to pass away. My wife hassince passed away, and her ex-hus-band is nowreceiving the full survivoramount.Basedon thepapers I signed,will I receive the full amount if hewere to pass away before me, andwhom do I contact?Response: Because your original pa-perwork specified that you would re-ceive the full survivor’s annuity if yourwife’s former spouse died, you onlyneed to make sure that the Office ofPersonnel Management (OPM) hasyour current address. If it hasn’tchanged since the original papers werefiled, you don’t need to do anything. Ifit has, send that information to OPM,Retirement Operations Center, P.O.Box 45, Boyers, PA 16017-0045, alongwith your late wife’s CSA number. Youdon’t need to keep track of your latewife’s ex-spouse. If he were to die,OPM would learn about that andbegin the process of providing thesurvivor’s annuity to you.

FERS SUPPLEMENTQUESTION: I retired at my min-imum retirement age of 56 after 20years of service. I am under the Fed-eral Employees Retirement System(FERS). If I return to work outside ofthe federal government,will I lose myFERS special retirement supple-ment?Response: If you exceed the annual So-cial Security earnings limit, your specialretirement supplement will be reducedby $1 for every $2 you earn over thelimit. In 2010, that annual limit is

Questions & Answers

It’s amazing how technology has changed the way we live. Since the end of the SecondWorld War, more products have been invented than in all of recorded history. AfterWWII came the invention of the microwaveoven, the pocket calculator, and the first wearable hearing aid. While the first two havegotten smaller and more affordable, hearingaids haven’t changed much. Now there’s an alternative… Neutronic Ear.

First of all, Neutronic Ear is not a hearing aid;it is a PSAP, or Personal Sound AmplificationProduct. Until PSAPs, everyone was requiredto see the doctor, havehearing tests, have fitting appointments(numerous visits) andthen pay for the instruments withoutany insurance coverage.These devices can cost up to $5000 each!The high cost and inconvenience drove aninnovative scientist todevelop the NeutronicEar PSAP.

Neutronic Ear has been designed with thefinest micro-digital electronic componentsavailable to offer superb performance andyears of use. Many years of engineering anddevelopment have created a product that’sready to use right out of the box. Thepatented case design and unique cleartube make it practical and easy to use.The entire unit weighs only 1/10th ofan ounce, and it hides comfortably behind either ear. The tube is designedto deliver clear crisp sound while leaving the ear canal open. The electronic components are safe frommoisture and wax buildup, and you

won’t feel like you have a circus peanutjammed in your ear. Thanks to a state-of-the-art manufacturing process andsuperior design, we can make Neutronic Earaffordable and pass the savings on to you.

It works… but don’t take our word for it. Why pay thousands to makeeverything sound louder whenwhat you really need is a Personal Sound AmplificationProduct? We’re so sure you’ll beabsolutely thrilled with the quality and effectiveness of thisproduct that we are offering it tothe public at a low introductoryprice with our exclusive trialoffer. If, for any reason, you are not completely amazed byhow this product improves your life, simply return it for a“No Questions Asked” refund of

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4


$14,160. The reduction takes place onthe first of the year following the year ofthe excess earnings.

MEDICARE PREMIUMSQUESTION: According to the De-partment of Health and HumanServices, upper income Medicarebeneficiaries ($85,000 for individuals,$170,000 for married couples filingjointly) will pay the higher premiums,and this will impact about 2 percentof beneficiaries.

I question theupper incomecutoffand think it should be much higher. Ialso question that the impact wouldbe limited to just 2 percent.Response: According to the informa-tion we have, the monthly Part B pre-mium is adjusted, based on the indi-

vidual’s filing status and adjustedgross income reported two years ear-lier on the individual’s federal incometax return.

The 2010 monthly premiumamounts for Part B increase from thebasic $96.40/$110.50 when the grossadjusted income is more than $85,000(single) and $170,000 (filing jointly),and maxes out when the gross in-come is more than $213,000 for asingle filer and more than $426,000for married filing jointly.

The Centers for Medicare & Medi-caid Services estimated in October2009 that, taken as a whole, about 5percent of all Medicare Part B benefici-aries will pay more than the basic PartB premium each month as a result ofhigher income. �

NARFE PERKS

NARFEGENERAL STOREOrderNARFEnamebadges andapparel, including jackets, base-ball caps, polo shirts and T-shirts!

SeeMEMBER PERKSon theNARFE

Web site, or go to:www.narfegeneralstore.com.Toll-Free Phone: 877-866-0102

Fax: 301-371-6824


My Heartfelt ThanksTo AllBy Paul H. CarewNational Vice [email protected]

Iwant to thankmy fellowNARFEmembers for supportingmy suc-cessful candidacy forNationalVice President. It was a very

competitive campaign. Candidates fornational officewere called upon to ad-

dress the serious is-sues facing our or-ganization, such asshrinkingmember-ship and resources, aswell as the need forchange.My principal

opponent in the race wasMarthaLeiker, Region VII regional vicepresident, fromColorado. Marthaconducted a very formidable andhard-fought campaign, and theelection result was very close. Hatsoff to her. Martha is stepping downfrom the National Executive Board,but her service to NARFE will notdiminish, and she will be aninfluential force in the Associationfor years to come.I was very impressed with the

diligence and determination ofconvention delegates. There were nohistrionics or rancorous debate. Thedelegates recognized theoverwhelming need for a nationaldues increase tomaintain NARFE’ssolvency through the next five or

more years, and they votedoverwhelmingly for it. Above all, thedelegates welcomed the candidatesduring the caucuses and listenedwith approbation when they spokeout for change.It has been a gratifying experience

for me to serve NARFE as a chapterofficer, a federation president and aregional vice president. And now, Ilook forward to serving as yourNational Vice President. I amsteadfast in my commitment as amember of the new nationalleadership team to see NARFEthrough these perilous economictimes. With your continuing support,we will succeed in our number onepriority: protecting our earnedbenefits. �

Vice President’sViews

Looking AheadWith ThanksBy Elaine HughesNational [email protected]

A s I write this, it isnearing the time forme to officially be-comeNARFE’s next

National Secretary. It is without adoubt one of themost important mile-

stones inmyNARFEjourney. I owemuchto you, themembers,who have givenmethis incredible oppor-tunity. It is an oppor-tunity that will betaken very seriously,

and I thank each of you.I wish to extend a special thank

you tomy chapter, Charles R. PattonChapter 156 in Asheville, NC; theExecutive Board of theNorthCarolinaFederation andmany ofmy friends inthe Federation Presidents’ GoogleGroup. I also thank the followingindividuals who provided suchwonderful on-site support during theconvention:Marlene Bunten, KY; BillandDonna Shackleford, VA; SueHawkins, Patsy Boyles, Frank andCarolyn London, Charlie and LindaPratt, TomHobgood, Theron andSandy Rumsey, and Lloyd andVilmaGeisert, NC. And, finally,my thanks toDenny Petrack, OH, for nominatingme. Their support will always beremembered and cherished. Again, Irecognize the contributions and

dedication toNARFE of the other twocandidates for National Secretary, H.RayHarrington andDave Sullivan.Both, I am sure, will continue to beactive in advancingNARFE’s agenda.Many challenges faceNARFE, and I

strongly believe that you havemandated that wemeet thesechallengeswith innovative andcreative solutions. As I embark on thisjourney, I will be focused on exploringthe best ways to enhanceNARFE andhowwemight serve the interests of allof ourmembers across the country.NARFE needs all of us tomove

forward and to grow.With that inmind, I look forward to havingconversationswithmany of youduring the next two years.Again,my thanks for your support

and vote of confidence. �

From the Secretary’s Desk


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Honoring PromisesBy Charles W. SaylorNational [email protected]

First of all, I would like tothank you for electingme asyourNational Treasurer. Iconsider it an honor that you

are permittingme to serve you.Duringmy

acceptance speech atthe convention, Ipledged that I woulddo the best possiblejob that a NARFEtreasurer can do. Iwant especially to

thank those who assistedme duringmy campaign, who gave of their timeand effort onmy behalf, and whoencouraged their members tosupport me.I also promised you amore open

budgetary process and, as soon asthe 2011 budget is approved by thenewNational Executive Board, I willpost it as a link on the NARFEWebsite. It will be accessible to allfederation presidents upon propersign-in with their personalidentification numbers. Federationpresidents are encouraged to sharethis information at federationmeetings with chapter presidents.My aim in doing this is to keep you

fully informed of our financial statusbecause themore information youhave, the better you will be atmaking decisions at our NARFEconventions.At prior conventions, I had little

opportunity tomeet members ofNARFE outside of my region. The2010 convention in Grand Rapidswas enriching because it gaveme theopportunity tomeet somany NARFEmembers. You impressedmewithyour enthusiasm for ourorganization.NARFE, like all organizations, has

to progress. To do this, some changesneed to bemade. Together, let’s helpNARFEmove forward. �

Treasurer’s Report

Membership Information(Active NARFE members)

Member Number:_______________________(New members) Membership is open to civilians inany agency of the federal or D.C. (before Oct. 1, 1987)governments eligible for a federal annuity.

Check one:� Retiree � Active federal employee� Spouse � Former federal employee� Former spouse � Survivor

Payment Information� Single payment or �Quarterly Installments (4 payments)

Life Membership fee amount: $____________

� Credit card � Check or money order (payable to NARFE)

Credit Card Info: � MasterCard � Discover � Visa � AMEX

Card Number:______________________________ Exp. Date:_____/_____

Name on Card: (print) ___________________________________________________

Signature: __________________________________________ Date:______________

Delegates atNARFE’s 2010Na-tional Convention directedthat a NARFE Bylaws Com-

mittee be established to revise theNARFE Bylaws. The committee has

been formed, and its members arelisted below. It is not a National Execu-tive Board (NEB) committee and doesnot comeunder the supervision of, nordoes it report to, the NEB. The com-

mittee may, from time to time, solicitcomments from individual NEBmem-bers, federations, chapters and othermembers on the content of the revisedBylaws.

The chair of the Bylaws Committeewill present the proposed revision ofthe National Bylaws to delegates forconsideration and adoption at the 2012National Convention in Reno, NV. �


NARFENews

NARFE Names CommitteeTo Revise Association’s Bylaws

BylawsReviewCommitteeREGION 1: Stephen J.Shurtleff

REGION II: Dr.Eric E.West

REGION III: LarryT.Shaff (Vice Chair)

REGION IV: DavidAdams

REGION V: Linda Kurz

REGIONVI: JeffersonW. Vaughan

REGIONVII: Dorothy C.White (Parliamentarian)

REGION VIII: Larry Enomoto

REGION IX: MaryWilliams (Chair)

REGIONX: Gaston L.Gianni

NARFE National Life Membership Application

Mail application and payment to: NARFE, Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314

Life Membership Fee ScheduleAges Single or Quarterly

Payment Installments30-39 $1,796 $450.2540-40 1,408 353.2551-55 1,127 283.0056-60 960 241.2561-65 801 201.5066-70 653 164.5071-75 514 129.7576-80 392 99.2581-90 251 64.0091-100+ 127 33.00

Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin. Please allowsix weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes.

Contact Information

Full Name: Mr./Mrs./Miss/Ms.

Street Address Apt./Unit

City/State/ZIP

E-mail Address

Date of Birth

Recruiter’s ID # (if applicable)

Chapter Number (call 800-456-8410 for chapter information)

National Life Membership offers a hedge against future dues increases and affirms a member’s ongoing support of NARFE’smission to serve federal employees and retirees. National dues are paid for life; applicable chapter dues are billed annually.

Silver Circle donations totaled$96,854 as of October 15.Donors from June 16-Oc-

tober 15 are listed here withtheir chapter numbers.

For a minimum contributionof $25, members receive a SilverCircle pin and have their names pub-lished in NARFE magazine.

Members who donate $1,000 ormore have their names engravedon the Wall of Fame at NARFEHeadquarters. To date, 34mem-bers have given at the $1,000level.To become a member of the

NARFE Silver Circle, see the couponbelow.


CALIFORNIACLARENCE L. BUNYARD 0021MARGARET BUNYARD 0021MAUREEN KELLY 0021MICHAEL PRINGLE 1317COLORADOCURRY E. HORAK 0241DELAWAREWALTER T. BERWICK 1690FLORIDAEDWARD M. SMITH 0109NANCY G. SMITH 0109IDAHODAHL L. ZOHNER 0419INDIANAALBERTA S.WHITE 0151MAINEALBERT MAUS 0206MARYLANDCHARLES H. SCHAUB 1888D. THOMAS LONGO 2274

MASSACHUSETTSEDWARD KARABA 0034DONNA M. POLAND 0034MICHIGANGEORGE P. HARTSELL 1215MINNESOTAARLYS HARTWIG 0150MISSOURIMARY MCMANUS 0112MONTANAVERNE P. LINSSEN 0107NEBRASKAPATRICIA J. KELLY 0144NEW JERSEYROBERT S. CARBONE 0501JOSEPH CURIA 0718LILLIAN DRASTURA 1000NEW MEXICODANIEL A. BRAVINE 1381NEVADADONALD N. BABB 2167

NORTH CAROLINATHOMAS ROGERS 2206OREGONELLEN J. CALKINS 0134TEXASKENNETH H. CHANDLER 0586LOUISE S. MARPLE 1320VIRGINIALINDA P. MASSARO 0007EVELYN I. SPURLOCK 0111LEILANI R. MATSON 0180CHARLES CUPPLES 0401JOHN BANKSON 1159GREGORY R. SUPER 1665SUSAN M. SUPER 1665WASHINGTONNONA J. CARTER 1404WISCONSINJOHN S. HEINZELMAN 1386WESTVIRGINIARONALD HEISE 0567

Silver Circle Expands

SILVERCIRCLE ($25 ORMORE)

Silver Circle Contribution Form

Yes! I want to be a member of the NARFE Silver Circle. Enclosed is my Silver Circle contribution of $_____

• For a contribution of$25 or more, you willreceive a Silver Circlepin, and your namewill be listed in NARFEmagazine with othercontributors.

• For a contribution of$1,000 or more, yourname will be placedon the “Wall ofFame” at NARFEHeadquarters.

ID # ____________________________________________________________________(ID # may be found on your NARFE magazine label or your NARFE membership card)

Name ____________________________________________________________________

Address ___________________________________________________________________

City ____________________________________ State ___________ ZIP _____________

� My check is enclosed (please make check payable to NARFE Silver Circle)

� Please charge my credit card

Card type � Mastercard � Visa � Discover � AMEX

Card # _________________________________________________

Expiration Date_____________________________________________

Name __________________________________________________

Signature ___________________________________________ Date ___________________

� Installment PlanWall of Fame 12-month

installment plan

Clip this contribution form and mail to: NARFE Silver Circle, NARFE, 606 N.Washington St., Alexandria, VA 22314Silver Circle contributions are not deductible for federal income tax purposes.

GiveaNARFEMembership forTheHolidays!

Do you have friends or familymembers who are eligible

forNARFEmembership butwhohave not yet joined? Please con-sider giving them a gift member-ship toNARFE.NARFE membership is the

perfect gift for the federal em-ployee or retiree who has almosteverything. They will receive 12issues ofNARFEmagazine and allthe other privileges and perks ofmembership – includingdiscountson valuable products and services.To give a membership, down-

load Gift Membership Informa-tion (F-85) from theNARFEWebsite, www.narfe.org (sign in andclick on Downloadable Forms inthe left panel of the MembersHomePage) or call 800-627-3394.


REGION IConnecticut . . . . . .103Massachusetts . . . .246Maine . . . . . . . . . . . .80New Hampshire . . .67NewYork . . . . . . ..550Rhode Island . . . . . . .46Vermont . . . . . . . . . .23Total . . . . . . . .1,115

REGION IIDist. of Columbia . .128Delaware . . . . . . . .101Maryland . . . . . . . .996New Jersey . . . . . .309Pennsylvania . . . . . .634Total . . . . . . . .2,168

REGION IVIllinois . . . . . . . . . . .419Indiana . . . . . . . . . .199Michigan . . . . . . . . .301Ohio . . . . . . . . . . . .370Wisconsin . . . . . . .230Total . . . . . . . .1,519

REGION VIowa . . . . . . . . . . . .231Kansas . . . . . . . . . .173Minnesota . . . . . . .317Missouri . . . . . . . . .257Nebraska . . . . . . . . .84North Dakota . . . . .89South Dakota . . . . . .65Total . . . . . . . .1,216

REGION VIIArizona . . . . . . . . .268Colorado . . . . . . . .318New Mexico . . . . .122Utah . . . . . . . . . . . . .74Wyoming . . . . . . . . .38Total . . . . . . . . .820

REGION XKentucky . . . . . . . . 145North Carolina . . . 331Tennessee . . . . . . . . 228Virginia . . . . . . . . 1,124West Virginia . . . . . . 93Total . . . . . . . . 1,921

REGION VIIICalifornia . . . . . . .1,019Guam . . . . . . . . . . . .11Hawaii . . . . . . . . . .113Nevada . . . . . . . . . . .95Philippines . . . . . . . . .0Total . . . . . . . .1,238

REGION IXAlaska . . . . . . . . . . . .68Idaho . . . . . . . . . . . .66Montana . . . . . . . . . .50Oregon . . . . . . . . . .148Washington . . . . . .416Total . . . . . . . . .748

REGION VIArkansas . . . . . . . . .117Louisiana . . . . . . . .129Oklahoma . . . . . . .216Panama . . . . . . . . . . . .8Texas . . . . . . . . . . .694Total . . . . . . . .1,164

REGION IIIAlabama . . . . . . . . .288Florida . . . . . . . . . .865Georgia . . . . . . . . .449Mississippi . . . . . . .115Puerto Rico . . . . . . .57South Carolina . . . .196Total . . . . . . . . . .1,970

FOREIGN31

RecruitmentResults –Through3rdQuarter2010At the end of the third quarter of 2010,NARFE had enrolled 13,910 newmembers. This compares with 14,918 at

the same time in 2009.– Jacqueline Johnson-Bryant,Recruitment and RetentionAssistant

NARFE HEADQUARTERS606 NorthWashington St.,Alexandria,VA 22314-1914Phone: 703-838-7760 Fax: 703-838-7785

CHANGE OFADDRESS: Contact Member Records toll-free at 800-456-8410, or send change of addressby postal mail to NARFE Headquarters, ATTN:Member Records, or by e-mail to [email protected].

Q&A: To obtain an answer to a retirement benefits question, call 703-838-7760 and ask for the RetirementBenefits Service Department; send your question by postal mail to NARFEHeadquarters, ATTN: RetirementBenefits; or submit it by e-mail to [email protected].

OUT &ABOUT: Submit photo with caption information by postal mail to NARFE Headquarters, ATTN: Out& About, or by e-mail to [email protected].

LETTERSTOTHE EDITOR: Letters to the editor may be edited for grammar, clarity and length. All lettersmust be signed. Send by postal mail to NARFE Headquarters, ATTN: Letters to the Editor, or by e-mail [email protected].

ContactUs

NARFENews


Out&AboutWith the Chapters

FormoreNARFEchapter and federationphotos,go towww.narfe.org. Click onNARFEmagazine.

Charles Moore,president of NorthDallas (TX) Chapter1139, poses withSherrie C.Wilson, amember of the DallasFire Department,whospoke at a recentchapter meeting.Hiredby the Dallas FireDepartment in 1977,Wilson was the firstfemale firefighter andlicensed paramedic inthe department.

Mike Demski, right,president of the NewJersey Federation,

presents the 2010 ServiceOfficer of the Year Awardfor New Jersey to DavidScheinhartz of Chapter1533 in Middletown.

Members of Chapter 443 in Huntsville,AL, participated recently inthe annual Alzheimer’s Walk. Pictured, from left to right: front row,Jerry Cox, Judi Moon, Sharon Snuff, Eleanor Kay and BarbaraBoomershine; second row, John Schmitz, Cheryl Patterson and JanHollowell; third row,Ray Farmer and Monte Hollowell.

90thAnniversaryMerchandise forSale

NARFE has the following 90thAn-niversarymerchandise for sale:

• 90thAnniversary Book,NARFE:Cel-ebrating90YearsofService,1921-2011,$10;• 90th AnniversaryPowerPoint Pre-

sentation,$5;• 90thAnniversary Lapel Pin,$3.

Toorder: Go towww.narfe.org,click onLeadershipat the topof thepage,thenclickonNARFE90thAn-niversaryMerchandise.

Your charitable contribution is tax deductible tothe fullest extent allowed by law.Write yourchapter number on check; make it payable to:

NARFE-Alzheimer’s Research and mail to:Alzheimer’s Association

225 N. Michigan Ave., 17th FloorChicago, IL 60601-7633

SUPPORT ALZHEIMER’S RESEARCH

Enclosed is my NARFE Alzheimer’s contribution: $ ___________.Every cent that is contributed is used for research.Please circle: Mr. Mrs. Miss Ms.

Name _______________________________________________________________

Address _____________________________________________________________

City _______________________________ State _________ ZIP______________

Chapter number _______________________

NARFE members contributedfor Alzheimer’s research:

$9 Million Fund

$8,836,191**Total as of September 30, 2010

100% of all contributed fundsgo to Alzheimer’s research.

If you have any qquueessttiioonnss,, write to:National Committee Chairman

Barb L. Pretzer, 4817 Rockridge Ct.Manhattan, KS 66503

Credit Card Information: � Visa � MasterCard �Discover � AMEX

Card Number: __________________________________________________________

Expiration Date:________(mm)/_________(yy) 3-Digit Security Code: _________

Name on Card: (print) ___________________________________________________

Signature:_________________________________________ Date: _______________


Allison HubbardBryant University

Granddaughter of FelicityHubbard, Chp 257 (CT)

Daniel SackBrown University

Grandson of WilliamLieberman, National only (MA)

Erik SimpanenUniversity of Rhode IslandGrandson of Viola Gerber,

Chp 158 (CT)

NARFE is proud to present the 2010 NARFE Scholarship winners and their NARFE sponsors. Each student re-ceived an award certificate and a $1,000 check for the 2010-2011 school year. Special thanks goes to theNARFEmembers from all 10NARFE regionswho served on the judging teams and to the staff of the Federal Employee

Education & Assistance Fund (FEEA), which administers this program for NARFE. Applications for the next scholarshipprogram will be printed in the February through April issues ofNARFEmagazine. (Note: Winners are listed according tothe region of their NARFE sponsor.)

Samantha ScibelliUniversity of MassachusettsGranddaughter of JohnPhillips, Chp 221 (MA)

Joseph YagodaYale University

Son of Steve Yagoda,Chp 471 (NY)

Kaitlyn YarrowsUniversity of Tampa

Granddaughter of MaryYarrows, Chp 484 (MA)

RE

GIO

NI Adam Bumpus

University of TennesseeGrandson of Peggy

Bumpus, Chp 934 (SC)

Katy CogginsUniversity of Texas

Granddaughter of MildredCoggins, Chp 1369 (MS)

Carson JacksonUniversity of Georgia

Granddaughter of MargueriteJackson, Chp 1419 (GA)

Nicole LustUniversity of Maryland

Granddaughter of VernonBump, Chp 1557 (FL)

Davis OrrUniversity of Alabama

Grandson of Robert OrrSr., Chp 443 (AL)

Anesia RetickerUniversity of Georgia

Granddaughter of RafaelDeJesus, Chp 252 (PR)

RE

GIO

NIII

RE

GIO

NII R

EG

ION

IV

Kane BrookensShippensburg UniversityGrandson of KathrynDymond, Chp 1063 (PA)

Chelsea BuxtonPenn State

Daughter of HerbertBuxton, Chp 1287 (PA)

Shane DalyDuke University

Grandson of Roberta Daly,Chp 1556 (PA)

Elizabeth HarveyU. of Mary Washington

Granddaughter of DorothyHarvey, Chp 2306 (MD)

Caitlin KowalewskiHarford Community CollegeGranddaughter of John

Schanberger, Chp 1770 (MD)

Lauren StablerOhio State UniversityGranddaughter of IrvingTrue, Chp 1260 (MD)

Helen Argiroff-FloodU. of Michigan Ann ArborGranddaughter of CarlArgiroff, Chp 1163 (MI)

Julie DepauwPurdue University

Granddaughter of JamesDepauw, Chp 470 (OH)

Ryan LannanUniversity of Texas

Grandson of John Lannan,Chp 57 (IN)

Glen MarquardtUniversity of California BerkeleyGrandson of Martha

Marquardt, Chp 689 (WI)

Amelia MartensU. of IL Urbana-ChampaignGranddaughter of MarilynDeclerck, Chp 338 (IL)

Jessica ZeigerGrace College Winona LakeGranddaughter of GaryCole, Chapter 1215 (MI)


Laura BrenbergPurdue University

Granddaughter of AlbertHoward, Chp 150 (MN)

Ashley BreyUniversity of North DakotaGranddaughter of WarrenBrey, Chp1377 (ND)

Elizabeth HivelyUniversity of MissouriGranddaughter of JerrisWaddell, Chp 1926 (MO)

Ian CarrU. of California Santa Barbara

Son of Thomas Carr,Chp 190 (CA)

Steven EllisonU. of California San DiegoGrandson of Joseph

Downs, Chp 2031 (NV)

Eugene FoxCal Poly San Luis ObispoGrandson of Grant Fox,

Chp 74 (CA)

Ashley LeckliterKansas State University

Granddaughter of ThomasLeckliter, Chp 1933 (KS)

Jodie SkidmoreBrigham Young UniversityGranddaughter of EdwardSkidmore, Chp 366 (KS)

Garrett SuttonGonzaga UniversityGrandson of Robert

Gestring, Chp 362 (NE)

Katherine KirkUniversity of Nevada RenoGranddaughter of BarbaraKirchner, Chp 45 (CA)

Tanis ReedBrigham Young UniversityGrandson of Eva Reed,

Chp 1854 (NV)

Saul WinerU. of California Santa CruzGrandson of Frank Winer,

Chapter 531 (CA)

Devon KeithTexas A&M UniversityGranddaughter of JoyMcMillin, Chp 1375 (TX)

Ryan RightmerRice University

Grandson of RobertRightmer, Chp 1415 (TX)

Chance WhinneryUniversity of OklahomaSon of James Whinnery,

Chp 1722 (OK)

Shawn JacksonCalifornia Lutheran UniversityGrandson of Chuck Warner,

Chp 397 (CA)

Sharon KossGrove City CollegeDaughter of Lee Koss,Chp 2067 (AK)

Nathan SielerGonzaga UniversityGrandson of Gordon

Rubenthaler, Chp 515 (ID)

Kenna BakerUniversity of Central OklahomaGranddaughter of DaleCassel, Chp 749 (OK)

Wyatt ChurchTexas A&M University

Grandson of Dennis Jones,Chp 228 (TX)

Nicolas JordanOklahoma State UniversitySon of Steven Jordan,Chp 2351 (OK)

Lindsey ElhartWashington State University

Daughter of AllenAgnew, Chp 131 (WA)

Kristen FredricksAzusa Pacific UniversityGranddaughter of LannyFredricks, Chp 213 (OR)

Sarah GilmoreGeorge Fox UniversityGranddaughter of ReginaFrantz, Chp 236 (WA)

Veronica HunsakerUtah State University

Granddaughter of DouglasGottfredson, Chp 155 (UT)

Erik MorrisonLawrence UniversitySon of Karen Morrison,

Chp 1119 (CO)

Ashley PetersonUtah State UniversityGranddaughter of KeithEggleston, Chp 1037 (WY)

Cory SmithTexas Christian UniversityGrandson of Bobbie Lewis,

Chp 1085 (CO)

Patrick SullivanColorado School of MinesGrandson of JosephCordova, Chp 80 (NM)

Kaitlin TrujilloUniversity of Arizona

Daughter of Manuel Trujillo,Chp 1061 (AZ)

Steven KrohStevenson University

Grandson of Uriah Kroh,Chp 1270 (VA)

Jacob MayUniversity of Virginia

Grandson of Gladys Barden,Chp 2265 (VA)

Willie McKoy IIINC A&T State UniversitySon of Willie McKoy Jr.,

Chp 276 (NC)

Andrew MerkleUniversity of Kentucky

Grandson of John Burton,Chp 1643 (KY)

Dianna RobertsWV Wesleyan CollegeGranddaughter of BettyRoberts, Chp 2287 (WV)

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Cathryn SchartungAuburn University

Granddaughter of JosephSchartung, Chp 324 (TN)


NARFEPerks

TRAVEL

NARFEPerks are designed to provide NARFEmembers with a quality option in their search for

commonly used products and services.NARFE makes no guarantee on any products and services listed

below and encourages its members to shop and compare before making a decision on any financial matter.

NARFEINSURANCESERVICES1-800-233-5764

Insuranceplansdesignedandadmin-istered exclusively for NARFEmembers.Call for information onWhole and TermLife,Hospital Indemnity, Accidental Injuryand Death Plan, Dental Plan andCancerCarePlan. For information on LongTermCare call the Long Term Care Unit at 1-800-358-3795.

GEICO: 1-800-368-2734NARFE members with good driving

records may be eligible for quality auto-mobile insurance fromGEICO.Askaboutthe NARFE discount now available tomembers in many states. Call today foryour free, no-obligation rate quote. Besure to mention that you’re a NARFEmember!• Discount amount varies in some states• Discount not available in all states or inall GEICO companies• One group discount applicable perpolicy.

NARFEMEMBERHOMEBENEFITS1-800-666-9203

http://narfe.myhomebenefits.com• Earn thousands in cash-back re-

wards when you buy or sell a home*• Shop competitive mortgage rates,

receive discounts on closing costs, plustakeadvantageof yourVALoanBenefits•Receivepreferredpricingon intere-

sete moving services with the nation’smost trusted moving company – AlliedVan Lines!*State restrictionsapply.Call or visitwebsite for details.

BEKINSVANLINES1-800-456-6832 (M-F, 8 a.m.-5 p.m.CT)

[email protected] NARFE

members will re-ceivediscountedpricing for all interstateshipments. Discount will apply topacking andmoving services and valua-tion protection. All intrastate shipments,locals and international moves will becompetitive in cost based on your geo-graphical location. Mention you are aNARFE member and transportationagreement #00930.

INSURANCEMOVING SERVICES

NARFECruises• Concierge Host• Private Cocktail Party• Exclusive Shore Event• Onboard Amenity

7-night Bermuda ~ June 19, 2011

12-nightMed ~ Sept. 9, 2011

10-day Canada ~ Sept. 30, 2011

12-day S. America ~ Dec. 8, 2011

14-day Asia ~ Feb. 5, 2012

CALL FORMORE INFO TODAY!

1-800-607-4538Website:www.NARFEtravel.com

SINCE 19741-800-423-3226

Medical Air Services Association hasbeen the industry leader inprepaidemer-gency assistance services formore than30 years. NARFEmembers have experi-encedMASA’s “peace ofmind” servicessince 2001. Now NARFE members areentitled to even more: air ambulancetransportation,helicopter transportation,groundambulance, vehicle return,mortalremains transport, andmuchmore!CallMASAToday. ItCouldSaveYourLife!

EMERGENCY SERVICES

VACATION RENTALS

Endless VacationRentals®As a member of NARFE, you will re-

ceive 10%off the “Best Available Rate”at vacation rental properties booked atwww.evrentals.com/narfeorbycalling1-877-670-7088, prompt 3, and providingpromotion code 20672 at time ofbooking.

HEARINGBENEFITS

TRUHEARINGThe TruHearing program can save

you hundreds of dollars:• Free hearing screening• 45-day,money-back guarantee• 3-yearwarranty• Free one-year supply of batteries• 1,400 hearing professionalsnationwide

• 12-months, no interest financing(available upon approved credit)

Call to schedule your appointment877-360-2442

Operators availableMon-Fri9 a.m.-9 p.m. (East Coast time)

NARFE’S OFFICIAL CREDIT UNIONAs a member of NARFE, you have

the privilege of joining NARFE PremierFederal Credit Union, which has beenserving members since 1935. We offerextensive services at competitive ratesto members nationwide. Your savingsare federally insured to at least $250,000andbackedby the full faith andcredit ofthe United States Government.For more information, call 800-328-

1500, e-mail [email protected] or visit us at NARFEpremierfcu.org.

CHOICEHOTELS INTERNATIONALWith 6,000hotels in theUnitedStates

and throughout the world, Choice Ho-tels®offerssomething foreveryone.JointheChoicePrivileges®rewardsprogramandearnpointswitheveryqualifyingstaytoward free nights, Airline Rewards, giftcards and more. As a NARFE member,receive 20%off your next stay at partici-patinghotelswhenyouuseSpecialRateID00801967.Thisoffer issubject toavail-ability andcannot becombinedwith anyother offer. Advance reservations re-quired. To book, visit choicehotels.comor call 800-258-2847.

WYNDHAMHOTELGROUPAs a member of NARFE, you will re-

ceive an additional 10% off the “BestAvailableRate”atparticipating locationsevery time you travel. Book online or calland give agent your special discount IDnumber, #20672,at timeofbooking to re-ceive discount.Whether you are lookingfor an upscale hotel, an all-inclusive re-sort or something more cost-effective,we have the right hotel for you... and atthe right price. So start saving now. Callour special member-benefits hotline 1-877-670-7088 and reserve your roomtoday at one of these fine hotels: Wyn-dhamHotels and Resorts®, Days Inn®,Ramada Worldwide®, Super 8®,Wingate ByWyndham®, Baymont InnsandSuites®,HawthornSuites®,MicrotelInns and Suites®, Howard Johnson®,Travelodge®, Knights Inn® and Ameri-Host Inn®.

HOTELS

ALAMO/NATIONALCARRENTAL

1-800-354-2322—www.alamo.comWelcome to Alamo Country. Where

NARFEmembers get unlimitedmileageand year-round discounts off Alamo’salready great rates. Book with yourtravel agent or Alamo®. Be sure to re-quest I.D. Number 262544 and RateCode BY (A-1 for weekend rentals) atthe time of reservation. (Same IDnumber and code applies to NationalCar Rental.)

AVIS: 1-800-331-1441The employees/owners of Avis offer

guaranteed low rates and quality serv-ices to members of NARFE. MentionID# A991900.

CAR RENTALS CREDIT UNION

CREDIT CARD

Bank of America now offers the offi-cially approved credit card program forNARFE, featuring the Platinum Plus®MasterCard®withWorldPoints. This isthe only credit card that helps supportNARFE every time you use it to make apurchase–at no additional cost to you.

Call toll-free 1-866-438-6262UseNARFE’s full name, not NARFE.

Use priority code: UABEWD.


HEALTH SCREENING

LIFE LINE SCREENINGLife Line Screening, America’s

leading provider of community-basedpreventive health screenings, will con-duct the following screenings usingstate-of-the-art ultrasound technologyin your neighborhood:1. Stroke/Carotid Artery2. Abdominal Aortic Aneurysm3. Atrial Fibrillation4. Peripheral Arterial Disease.Youwill receive a confidential written

reportwithin21days.LifeLineScreeningand NARFE encourage you to sharethese test resultswithyourdoctor.All fourscreeningscost just$135.Toscheduleanappointment,pleasecall 1-800-324-9906and give the operator code number:BKHN075 or visit www.lifelinescreening.com/NARFE.

Coverage may vary and may not beavailable in all states.

NARFEGENERAL STORE

OrderNARFEnamebadges andapparel, including jackets, baseballcaps, polo shirts and T-shirts!SeeMEMBERPERKS

on theNARFEWeb site, or go to:www.narfegeneralstore.com.Toll-Free Phone: 877-866-0102

Fax: 301-371-6824

NARFEMERCHANDISE

The gains that began in Sep-tember continued in October,as all of the Thrift Savings Plan

(TSP) Funds posted positive returns forthe secondmonth in a row.

Although the unemployment rateremained unchanged at a lofty 9.6 per-cent andGrossDomestic Product grewa sluggish 2.0 percent in the thirdquarter, investors focused on FederalReserve Chairman Ben Bernanke’s re-marks that the Federal Reserve Bankwould begin a second round of quan-titative easing, purchasingU.S. Treasurysecurities in the open market in orderto hold interest rates down.

For the year to date, the L 2040Fundhas outperformed all other TSP Fundsexcept the S Fund.

Tracey Ray is chief investment officerof the Thrift Savings Plan.


For theRecord

All Funds PostOctober Gains

ByTracey Ray

NO RETIREE COLASee page 8.

1. Publication Title: NARFE

2. Publication Number: 4632-60

3. Filing Date: Sept. 27, 2010

4. Issue Frequency: Monthly

5. Number of Issues Published Annually: 12

6. Annual Subscription Price: $33

7. Address of Known Office of Publication: National Active and Retired FederalEmployeesAssociation, 606 N.Washington Street,Alexandria,VA 22314-1914

8. General Business Office of the Publisher: National Active and Retired FederalEmployees Association, 606 N.Washington Street,Alexandria,VA 22314-1914

9. Names and Addresses of Publisher, Editor, and Managing Editor:Publisher: National Active and Retired Federal Employees Association, 606N.Washington Street,Alexandria,VA 22314-1914

Editor: Margaret M. Carter, 606 N.Washington Street,Alexandria,VA 22314-1914

Managing Editor: Not Applicable

10.Owner: National Active and Retired Federal Employees Association, 606 N.Washington Street,Alexandria,VA 22314-1914

11.Known Bondholders, Mortgagees, and Other Security Holders Owning orHolding 1 Percent or More of Total Amount of Bonds, Mortgages or OtherSecurities: None

12.Tax Status: Has Not Changed During Preceding 12 Months

13. Publication Title: NARFE

14. Issue Date for Circulation Data Below: October 2010

15. Extent and Nature of Circulation:

A. Total Number of Copies (Net Press Run) 307,360 307,184B. Paid Circulation1. Mailed Outside-County PaidSubscriptions Stated on PS Form 3541 299,436 295,502

2. Mailed In-County Paid SubscriptionsStated on PS Form 3541 0 0

3. Paid Distribution Outside the theMails including Sales Through Dealersand Carriers, Street Vendors, Counter Sales,and Other Paid Distribution Ouside USPS 0 0

4. Paid Distribution by Other Classes of MailThrough the USPS 0 0

C. Total Paid Distribution 299,436 295,502D. Free or Nominal Rate Distribution1. Free or Nominal Rate Outside-CountyCopies included on PS Form 35410 0 0

2. Free or Nominal Rate In-CountyCopies included on PS Form 3541 0 0

3. Free or Nominal Rate Copies Mailedat Other Classes Through the USPS 5,667 8,000

4. Free or Nominal Rate DistributionOutside the Mail 187 641

E. Total Free or Nominal Rate Distribution 5,854 8,641F. Total Distribution 305,290 304,143G. Copies Not Distributed 2,070 3,041H. TOTAL 307,360 307,184I. Percent Paid and/or Requested Circulation 98.1 97.216. Publication of Statement of Ownership: December 201017. I certify that all information furnished on this form is true and complete.

Margaret M. Carter, Editor/Sept. 27, 2010

Average No. CopiesEach Issue DuringPreceding 12 Months

No. Copies of SingleIssue Published

Nearest to Filing Date

NNAARRFFEE SSttaatteemmeenntt ooff OOwwnneerrsshhiipp,, MMaannaaggeemmeenntt,, aanndd CCiirrccuullaattiioonn

Thrift Savings Plan Investments*

*This chart is provided as a service to NARFE members who enrolled in the Thrift Savings Plan whileemployed by the federal government. Retirees are not eligible for enrollment. These returns are netof the effect of accrued administrative expenses and investment expenses/costs. Percentages in ( ) arenegative. Source: tsp.gov.

Month G Fund F Fund C Fund S Fund I Fund2009 November 0.26% 1.30% 6.00% 3.85% 3.16%

December 0.25% (1.55%) 1.94% 6.57% 1.43%2010 January 0.29% 1.54% (3.60%) (2.43%) (5.17%)

February 0.24% 0.38% 3.11% 4.89% 0.06%March 0.27% (0.11%) 6.04% 7.39% 6.28%April 0.28% 1.07% 1.58% 4.82% (2.35%)May 0.28% 0.85% (7.99%) (7.51%) (11.20%)June 0.24% 1.56% (5.24%) (6.90%) (1.75%)July 0.23% 1.07% 7.01% 7.00% 10.78%August 0.22% 1.28% (4.51%) (5.59%) (3.14%)September 0.17% 0.17% 8.92% 11.47% 9.81%October 0.18% 0.36% 3.80% 4.48% 3.63%

Last 12 Months 2.94% 8.16% 16.53% 29.17% 9.78%

Month L Income L 2010 L 2020 L 2030 L 20402009November 1.27% 1.47% 3.00% 3.55% 3.98%

December 0.59% 0.70% 1.50% 1.85% 2.12%2010 January (0.45%) (0.58%) (2.03%) (2.49%) (2.88%)

February 0.74% 0.81% 1.61% 1.94% 2.18%March 1.43% 1.61% 3.75% 4.52% 5.15%April 0.50% 0.51% 0.76% 0.94% 1.05%May (1.50%) (1.64%) (4.98%) (6.07%) (6.97%)June (0.61%) (0.68%) (2.34%) (2.98%) (3.47%)July 1.81% 1.81% 4.82% 5.80% 6.60%August (0.63%) (0.62%) (2.29%) (2.88%) (3.33%)September 2.00% 2.00% 5.54% 6.77% 7.76%October 0.92% 0.92% 2.29% 2.78% 3.16%

Last 12 Months 6.18% 6.41% 11.63% 13.65% 15.18%

“Well, I finally did it. I finally decided to enter the digital age and get a cell phone. My kids have been bugging me, my book groupmade fun of me, and the last straw was when my car broke down, and I was stuck by the highway for an hour before someonestopped to help. But when I went to the cell phone store, I almost changed my mind. �e phones are so small I can’t see the numbers, much less push the right one. �ey all have cameras, computers and a “global-positioning” something or other that’s supposed to spot me from space. Goodness, all I want to do is to be able totalk to my grandkids! �e people at the store weren’t much help. �ey couldn’t understand why someone wouldn’t want a phone the size of a postage stamp. And the rate plans! �ey were complicated, confusing, and expensive… and the contract lasted for two years! I’d almost given up when a friend told me about her new Jitterbug phone. Now, I have the convenience and safetyof being able to stay in touch… with a phone I can actually use.”

�e cell phone that’s right for me. Sometimes I think the people who designed this phoneand the rate plans had me in mind. �e phone fits easily in my pocket, but it flips open andreaches from my mouth to my ear. �e display is large and backlit, so I can actually see whois calling. With a push of a button I can amplify the volume, and if I don’t know a number, Ican simply push one for a friendly, helpful operator that will look it up and even dial it for me.�e Jitterbug also reduces background noise, making the sound loud and clear. �ere’s even adial tone, so I know the phone is ready to use.

Affordable plans that I can understand – and no contract to sign! Unlike other cell phones, Jitterbug has plans that make sense. Why should I pay for minutes I’m never going to use?And if I do talk more than I plan, I won’t find myself with no minutes like my friend whohas a prepaid phone. Best of all, there is no contract to sign – so I’m not locked in for yearsat a time or subject to termination fees. �e U.S. – based customer service is second to none,and the phone gets service virtually anywhere in the country.

Call now and get a FREE GIFT. Try Jitterbug for 30 days and if you don't love it, just return it. Why wait, the Jitterbugcomes ready to use right out of the box. �e phone comes preprogrammed with your favorite numbers, and if you aren’tas happy with it as I am you can return it for a refund of the purchase price. Call now, the Jitterbug product experts areready to answer your questions.

Monthly RateOperator Assistance

911 AccessLong Distance Calls

Voice DialNationwide Coverage

Trial Period

$14.9924/7

FREENo add’l charge

FREEYes

30 days

$19.9924/7

FREENo add’l charge

FREEYes

30 days

50 100Monthly Minutes

IMPORTANT CONSUMER INFORMATION: All rate plans require the purchase of a Jitterbug phone and a one-time set up fee of $35.00. Coverage and service is not available everywhere. There are no additional fees tocall Jitterbug’s 24-hour U.S. Based Customer Service. However, for calls to an Operator in which a service is completed, minutes will be deducted from your monthly balance equal to the length of the call and any call connected by the Operator, plus an additional 5 minutes. Rate plans do not include government taxes or assessment surcharges. Prices and fees are subject to change. Savings are based on marketing materials from nationally available cellular companies as of June, 2010 (not including family share plans). The full price of the Jitterbug Phone will be refunded if it is returned within 30 days of purchase, in like-new condition, and with lessthan 30 minutes of usage. A Jitterbug Phone purchased from a retail location is subject to the return policy of that retail location. The Jitterbug phone is created together with worldwide leader Samsung. Jitterbug is a registered trademark of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics America, Inc. and its related entities. Copyright ©2010 GreatCall, Inc. Created together with worldwide leader Samsung.Copyright © 2010 by firstSTREET for Boomers and Beyond, Inc. All rights reserved.

4745

8

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Questions about Jitterbug? Try our pre-recorded Toll-Free Hotline1-888-818-7734.

Jitterbug Cell PhoneCall now for our NEW low price.Please mention promotional code 41439.

1-888-671-8547www.jitterbugdirect.com

Available inRed, White (shown), and Graphite.

Finally, a cell phone that’s… a phone!

More minute plans available. Ask your Jitterbug expert for details.

888-671-8547

Price

Reduced by$48

JBUG_47458_41439_7x9.75:JBUG-47458_7x9.75 10/13/10 9:36 AM Page 1

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december 2010

Documents

bargain place

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alzheimers coupon

federal retirees

cola12 debt panel report

cover storycover design

carterassistant editordonna

thenational president18