As the first day of spring approaches,

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1 Quarterly News for NARFE Leaders Volume 10, Number 1 January 2013 A New Year and New Ideas By Joseph A. Beaudoin, National President As the first day of spring approaches, we can look and recent retirees who would not rected to active federal employees back at what we have accomplished, or not accomplished, our expectations were far exceeded normally join a traditional chapter, since the National Convention in by seeing the hundreds of new Reno-Sparks, NV, at the end of August. One of the biggest NARFE ac- chapters. members who joined these two complishments is the growth of Please read carefully Vice President Carew s column on p. 2 on the enarfe chapters. When enarfe growth of enarfe chapters and the creation of enarfe Introducing NARFE Insider divisions. With this issue of the quarterly In addition to newsletter for NARFE leaders, we have the enarfe chapter, there are cur- not only renamed but also revamped Quarterly News. The new NARFE Insider will focus on rently many the business of NARFE. In addition to the National aggressive and innovative member- Executive Board minutes, each issue will include guidance, special notices and updates from the National ship marketing Officers and NARFE Departments. NARFE Insider also is projects in available for downloading on the NARFE website, progress, as described in National (click on Officer Resources on the Members Home Page, then click on Newsletters in Secretary Hughes the left panel). column on p. 3. We all know that the Chapter 2363 was first chartered in more members we have, the March 2011, we were very optimistic about this new approach to Hill. If we are to be successful in louder our voice is on Capitol prospective members namely, offering them the ability to belong to then we need to rebuild in large protecting our earned benefits, an electronic chapter. Our optimism was rewarded as we watched ganizations. As we have said volume and partner with other or- members join enarfe Chapter many times in the past, we are 2363 and Florida s enarfe Chapter Even though this new the deficit or balance the budget; willing to do our share to reduce chapter approach was initially di- however, we do not want to be unfairly singled out again (as we were when our cost-of-living adjustments were reduced or cancelled, and when President Barack Obama froze the salaries of federal employees in 2010). Federal workers and retirees have a vested interest in protecting our country. They have served our country faithfully for many years, and are willing to step up to the plate whenever the country needs them. In March, we will hold our biennial Legislative Training Conference. This is a great opportunity for all members to join together to discuss our legislative agenda and process. We have a number of interesting sessions planned, as well as a num- In this issue National Officer Columns President...1 Vice President...2 Secretary...3 Legislative Update...4 Federal Benefits...4 Best Practices...5 NARFE in the News...6 More from NARFE Tax Returns...7 Scholarship Program...8 Photo Contest...9 NEB Minutes...9

2 ber of great speakers. We hope that many of you will join us at the conference in order to exchange ideas and learn more about the legislative process. Following the Legislative Training Conference will be many federation conventions. Headquarters personnel will be attending a number of them (we attend state conventions every other year in order to save money). Those federation conventions where we will not be sending a representative can request one or more National Officers or Headquarters staff to attend their convention electronically via Skype or Go- ToMeeting. We have set up a special room at Headquarters for this type of electronic meeting. Chapters also can request Headquarters personnel to join them electronically at their chapter meeting. This is a great way for a chapter or federation to get the latest information for their members. Staffers from our Legislative Department, Membership Department, Federal Benefits Service Department, IT Department, Communications Department, etc., are all available (schedules permitting), at your request, to participate in electronic meetings. Let s make 2013 another productive and memorable year for NARFE by working together. And let s find more innovative approaches to increase NARFE membership. edivisions enarfe With Wings By Paul H. Carew, National Vice President In November 2010, an enarfe membership was approved by the National Executive Board (NEB), with the goal of stimulating membership recruitment and retention. It was acknowledged that the future of NARFE rested with recruiting and retaining both active federal employees and recent retirees, a group that demonstrated only minimal interest in our traditional chapter life. An integral part of the approval process was the establishment of online enarfe chapters. At the 2011 federation president s meeting in Sparks, NV, enthusiasm continued to build for the enarfe concept. As the operation and management of an enarfe chapter is fairly labor intensive and time consuming, and requires technical skills normally provided in similar organizations by salaried IT professionals, it was the consensus of the presidents that NARFE Headquarters should continue to manage the enarfe program prudently, with an eye to the future. With the overwhelming popularity of enarfe over the last year, and the growing body of evidence that enarfe membership is essential to the growth and successful future of NARFE, many federations requested approval to establish enarfe chapters. Sustainability became the over-arching concern. Given the technical and operational concerns of maintaining an enarfe chapter, could enarfe chapters be sustained and function over the long haul with volunteers? Could federations ensure that a consistent level of quality and commitment be maintained, as volunteers grow tired or distracted by other commitments and vacate their enarfe positions? It seems unlikely. To address this concern, the NEB approved an enarfe structure that meets our long-term strategic needs while maintaining the strength of our federations. This structure has as its core a single enarfe worldwide chapter, Chapter 2363, and will be the home chapter for all future enarfe members. The worldwide chapter website, maintained by salaried Headquarters IT professionals, will include federationbased virtual enarfe divisions. Each federation is encouraged to establish a virtual enarfe division. An enarfe division will be a satellite of, and hosted by, the worldwide enarfe chapter. When a federation elects to create an enarfe division, the federation should establish an enarfe division website that will be hosted 2 NARFE Insider Quarterly News for NARFE Leaders

3 free of charge by Headquarters IT staff via the worldwide web. The federation also would establish the position of federation enarfe division coordinator to oversee the website and provide content-driven federation communications with its enarfe division members. The federation president would be the enarfe division coordinator, unless and until an enarfe division coordinator is appointed. Once the federation creates an enarfe division, the federation will have access to all enarfe members who reside within that federation in order to keep its members informed on state and local issues. All enarfe division members will have read and write access to the enarfe blog. With this new structure, we can ensure that NARFE remains forward thinking and relevant, and meets the needs of present and future members. Positive Trends By Elaine C. Hughes, National Secretary Best wishes for the New Year! At National Headquarters, we are hard at work on the 2013 Strategic Membership Marketing Plan. As a reminder, it is available to you on the NARFE website. January and March mailings, analysis of fourth quarter 2012 marketing campaigns, and online advertising to generate both new NARFE prospects and gain exposure are our major initiatives this first quarter. I d like to take the opportunity here to reflect on 2012 results and expectations for After decades of decline, our goals have been to slow, halt and then begin to build NARFE s total membership. Although analysis had revealed that retention among our members was excellent relative to any industry standards, NARFE had simply not recruited as many new members as were necessary to replace lost members. Sadly, as a growing number of our oldest members pass away, the need for new members only increases. We understood that a history of relying solely on the Office of Personnel Management list of recently retired federal employees had not been and will not be sufficient. Five very large mailings over the course of 2012 were designed to identify sources of new members and the offers/messaging/creative that allowed for financially feasible mass recruitment. We also recognized that a treasure trove of lapsed members, dating back many years, offered an enormous opportunity for reinstatement. As we close 2012, we are encouraged to have slowed the historical membership decline. After a long-term trend of losing, on average, 2,500 in total membership per month, we have made some significant progress. By the November 2012 close, we were within 50 members of the previous month s close. In December 2012, we posted a membership gain of 799. The 2012 year-end results afford us just a moment to appreciate the fruit of our past efforts. As we look to 2013, we are confident that this more positive trend will continue in the long term. We also are well aware that it will take much work and months of ups and downs as we travel the road to growth. Our 2013 plan includes new field communication initiatives. This revamped quarterly newsletter, a reformatted Recruiting & Retention Journal, and quarterly virtual meetings with federation presidents and regional vice presidents are among our efforts. We look forward to sharing results and information that can aid us all in NARFE recruitment. 3 NARFE Insider Quarterly News for NARFE Leaders

4 Legislative Update By Christopher Farrell, Legislative Representative Comparison Maps: Congressional Districts and 113th Congress Many NARFE members have asked for pre-redistricting and postredistricting maps of congressional districts. A great website for maps showing congressional districts before and after redistricting is provided by Civic Impulse. This website shows side-by-side maps of the 2010 (old) and 2012 (new) congressional districts. Please try this site and share it with members: This is the gateway to finding interactive maps by city, ZIP code or congressional district Legislative Training Conference Registrations are running somewhat ahead of 2011 s pace for attendance at the Legislative Training Conference, and we expect another sellout. Registrations for the March 9-12 conference must be returned by February 5, Federations are strongly urged to use 10 Percent Funds to defray some of the cost for aspiring legislative leaders. The 2013 Legislative Training Conference will be held at the Renaissance Arlington Capital View Hotel in Arlington, VA ( or ). Hotel reservations must be made separately. Be sure to mention the NARFE Legislative Training Conference when you call. This hotel is across the street from the Hyatt Regency, the site of the 2011 conference. The conference is held biennially with the goals of promoting advocacy and grass-roots development, educating members on NARFE s legislative agenda, providing expertise and guidance on the political process, and obtaining feedback and guidance from officers, leaders and activists. The $175 registration fee includes three buffet breakfasts, two full lunches, one buffet dinner, all materials, and transportation to and from Capitol Hill. The conference is open to all members, and the registration form ran in the February issue of narfe magazine, pp Online registration and a fillable registration form are available on our website at legislation/articles.cfm?id=2936. Recent Accomplishments If the 112th Congress ( ) could be described in one word, it would be dysfunctional. Defending NARFE members earned benefits became job one from day one. NARFE activists and staff worked with coalition partners in the federal-postal community to limit the damage done to current and future federal retirees. Two proactive victories two new laws enacted by the 112th Congress are the Flags for the Fallen and Hatch Act Re- Federal Benefits By David Snell, Director, Federal Benefits Service Department Availability of 1099-Rs Many NARFE members have expressed their concerns about the message on the back of their annual Notice of Annuity Adjustment mailings they received in late December from the Office of Personnel Management (OPM). In the notice, OPM stated that, in the future, form 1099-R ( Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. ) would only be available electronically. Since then, OPM has informed NARFE that it will provide instructions this year to annuitants on how they can opt in to receive their 1099-Rs electronically. This indicates to us that, if an annuitant doesn t opt in for electronic receipt, then his or her 1099-R will be mailed, just as in the past. OPM added that it will continue to work with all annuitants to ensure that they get the information they desire in the format they find most useful, to the extent possible. OPM will provide annuitants and survivors with additional information on this issue throughout the year. NARFE s Federal Benefits Service Department also will issue periodic updates. 4 NARFE Insider Quarterly News for NARFE Leaders

5 form. One was sponsored by a new Republican in the House, and the other by a retiring Democrat. Rep. Richard Hanna, R-NY, overcame early opposition from veterans organizations to win unanimous passage of his Flags for the Fallen, which will provide an American flag at the burial service for federal civilian employees killed while performing official duties. Sen. Daniel K. Akaka, D-HI, a career champion of the federal family, grabbed victory from the jaws of defeat during the lame-duck session and won enactment of Hatch reforms that provide the Merit Systems Protection Board (MSPB) a wider range of punishments for Hatch Act violators. Instead of firing violators the only authorized penalty up to now, unless the board unanimously opts for a different route the MSPB could issue formal reprimands, reduce violators pay grades, bar them from federal employment for up to five years or fine them up to $1,000. State Sales Tax News Due to a not-well-covered provision of the law temporarily averting the fiscal cliff, taxpayers in states with sales taxes get a one-year extension of their ability to deduct their state tax payments on their federal tax returns. That s worth more than $5 billion to them and a loss of the same amount to the U.S. Treasury. This is especially valuable to people in states with no state income tax, such as Nevada and Florida, where much of the state revenue comes from relatively high state sales taxes. March Is NARFE-PAC Month As it has since 2003, the March issue of narfe magazine will feature NARFE-PAC, our Political Action Committee. The NARFE- PAC lapel pins will debut with the article. The qualifying donation will remain $20 or more. Educating New Members of Congress New representatives and senators will know little about the federal civil service, health benefits and retirement, and it is up to NARFE officers and activists nationwide to educate them early in the 113th Congress ( ). Face-to-face meetings are by far the best way, and these are a NARFE specialty. To display the 99 newest members of Congress, click here, and then check the entry for Freshman Member and Submit it Vote Counts and Campaign Cash Tally The best website for final election votes and percentages, as well as total campaign funds raised by major candidates, is papers.com. On this one site, you can see total funds raised and total votes for each House and Senate candidate: U.S. Senate: papers.com/g12/senatevote ByParty.phtml U.S. House: papers.com/g12/housevote ByParty.phtml. Best Practices To share ideas from chapters and federations that have had positive results, NARFE Insider will feature several best practices on a specific topic in each issue of the newsletter. These topics will not include recruitment and retention ideas, as these will be featured in the Recruiting & Retention Journal. Do you have any ideas that have worked for you that you would like to share with other NARFE leaders? We re interested in such topics as speakers at chapter meetings, Alzheimer s fundraising, increasing meeting attendance, welcoming new members, advocacy and advertising. Please send them to communications@narfe.org. Welcoming New and Renewing Members Although many chapters list the names of new members in their newsletters along with a welcome message, Chapter 672 in New Braunfels, TX, had a standout feature showcasing new members in its first-quarter newsletter of Photos and brief bios introducing each new member were printed in a Chapter Extra section, increasing the likelihood that these members would be recognized and greeted by name at the next meeting or social event. And the information in their bios would provide conversation-starters as well as reveal areas 5 NARFE Insider Quarterly News for NARFE Leaders

6 of common interest to existing members. Highlighting these members also helped to make them feel a part of the NARFE community. The words You Are Appreciated headed a column in the January Chapter 478 Bimonthly Blurb Newsletter, from Southwest Riverside County, CA. Not only were new members listed, but renewing members and those transferring from another chapter also were recognized. The column ended with a statement of appreciation for members commitment to the goals and purposes of NARFE, and an invitation to attend a chapter meeting. The January newsletter for Greater Bowie-Crofton Area (MD) Chapter 1747 contained a welcome and acknowledgment for new members who are still employed and, therefore, unable to attend the chapter s weekday meetings. The chapter pledged to include information in the newsletter that would apply specifically to active feds, and invited these new members to contribute items of interest for publication in the newsletter or on the chapter website, and to suggest topics they would like to see discussed in the newsletter. NARFE in the News Over the last few years, NARFE has enhanced its media outreach and, as a result, has seen an increase in media presence at both the national and local levels. These results grew from efforts to increase awareness of the contributions of federal employees to our nation, refute inaccurate perceptions about federal pay and benefits, and voice our opposition to proposals to cut the benefits of active and retired federal employees. Each issue of NARFE Insider will feature a selection of summaries of major media coverage, as well as local news coverage generated by chapters and federations. National Coverage NARFE responded quickly to proposals to adopt a different consumer price index for determining cost-of-living adjustments the Chained CPI. On December 1, The Washington Post published a letter written by NARFE President Joseph A. Beaudoin refuting a November 26 Post editorial that claimed the Chained CPI was a better measure of inflation. In Mike Causey s December 4 Federal Report, A Last Minute and Very Real Pension Threat, Causey cited Beaudoin s letter to The Post and again, in his December 17 Federal News Radio report, Diet COLAs for Everybody? Causey covered the topic, repeating NARFE s warnings about the threat of reduced COLAs. On December 18, The Washington Post reported on Beaudoin s letter to Congress urging lawmakers to reject plans to switch to the Chained CPI, and Government Executive picked up the story in a December 18 article, Federal Groups Blast Possible Fiscal Cliff Switch to Less Generous COLA Formula, also citing Beaudoin s letter to members of Congress on the Chained CPI. The next day, The Washington Post featured a lengthy questions and answers column, and quoted NARFE Legislative Director Jessica Klement on the Chained CPI. On December 13, 2012, Federal Times reported on the Chained CPI issue, citing NARFE s letter to lawmakers. Government Executive highlighted NARFE s efforts to challenge potential changes to workers compensation laws in a December 7, 2012, article, Federal Employee Advocates to Congress: Don t Cut Workers Comp. NARFE National Secretary Elaine Hughes was interviewed on the CNN Radio News Day (online) December 13, 2012, about the fiscal cliff. The House vote on the Spending Control Act, which increases federal employee contributions toward retirement, received extensive media coverage. NARFE sent a letter to the Hill opposing the bill. The letter was quoted in The Washington Post, Government Executive, Federal Times and FedSmith on December 20, Legislative Director Klement was again interviewed by The Washington Post for a story on the debt limit, sequestration and the Continuing Resolution, and the role that federal pay, retirement benefits and workforce size will play in deliberations in the months ahead. The article, Trio of 6 NARFE Insider Quarterly News for NARFE Leaders

7 Budget-Related Measures Could Affect the Federal Workforce in Coming Months, appeared on January 4, On January 8, 2013, Federal News Radio s Mike Causey touted a narfe magazine article about federal retirees returning to work for the federal government. Life After Retirement also included a link to the narfe magazine article. President Beaudoin was quoted January 16, 2013, in Government Executive denouncing legislation introduced by Rep. Ron DeSantis, R-FL, that would extend the pay freeze for federal employees through the end of the year. Government Executive and FedSmith also cited a January 18 letter Beaudoin sent to the Hill, urging House members to vote against the proposal. David Snell, director of NARFE s Federal Benefits Service Department, is a frequent guest on Federal News Radio. He appeared several times in the fall, covering topics ranging from Medicare and FEHBP plans to advice on what to consider before making the decision to retire. Local Coverage Hammond, IN, Chapter 546 member Carl Bernacky provided a web letter and guest commentary for the Fort Wayne Journal and the Northwest Indiana Times on December 26, 2012, and January 14, His topic: the disparity in treatment of retirement benefits and state income tax. The online edition of the Bedford and Lawrence County, IN, Times-Mail reported on members of Bedford Chapter 578 who visited the Indiana Statehouse to discuss the tax fairness initiative with legislators. Bluebonnet Ellis-Navarro County Chapter 1191 in Texas localized the national news release on NARFE reaching the $10 million mark in donations for Alzheimer s research. The story, which highlighted local fundraising efforts, appeared in the Corsicana Daily Sun on January 10, 2013, and The Ellis County (TX) Press on January 19, The Midland (TX) Reporter Telegram ran a thank you from Permian Basin-Midland Chapter 1281 to residents who donated aluminum tabs and cans to NARFE to benefit Alzheimer s research. The article also highlighted NARFE reaching the $10 million goal. The notice was prepared by Stan Sartain, Texas Federation executive vice president and president of Chapter The Wooster, OH, Daily Record published a letter on January 19, 2013, submitted by Larry Harris, president of Wayne County Chapter Harris corrected a previously published letter, which stated that health benefits for federal employees are free. Several questions and answers from narfe magazine on furloughs and federal survivor benefits were reprinted in January 17, 2013, edition of The Gold Standard, Fort Knox, KY. The information was submitted by Marj Fair, Kentucky NARFE Federation public relations chair, who also provided a local NARFE contact for more information. >> More from NARFE All NARFE Chapters and Federations Must File IRS Returns The Internal Revenue Service (IRS) requires that all NARFE chapters and federations, without exception, file a tax return regardless of how much income they earned in If you did not have any taxable income in 2012, you will still need to file Form 990-N, Electronic Notice (e-postcard) for Tax-Exempt Organizations. This form is only available on the Internet. The IRS will revoke the tax-exempt status of your organization if you fail to file your taxes for three consecutive years. You will have to apply (or reapply) and pay the appropriate user fee to have your taxexempt status reinstated if it is revoked because you failed to file for three consecutive years. In order to file any return with the IRS, it is important that you know your organization s employer identification number (EIN). If you do not know your organization s EIN, contact the Budget and Finance Department at , extension 282; or budfin@narfe.org. In addition, you must show NARFE s group exemption, GEN 1599, on IRS Forms 990T and 990, and on all correspondence to the IRS. This number identi- 7 NARFE Insider Quarterly News for NARFE Leaders

8 fies your chapter or federation as a subordinate of NARFE under the group exemption letter. The 990 filing thresholds for the 2012 tax year are: 1. File Form 990-N, Electronic Notice (e-postcard) for Tax-Exempt Organizations, which is only available on the Internet at if your federation or chapter gross receipts in 2012 were $50,000 or less. The threshold was $25,000 for tax years ending between December 31, 2007, and December 31, For the tax year ending December 31, 2012, your gross receipts are considered to be $50,000 or less if your organization: a. Has been in existence for one year or less and received, or donors have pledged to give, $75,000 or less during its first taxable year; b. Has been in existence between one and three years, and averaged $60,000 or less in gross receipts during each of its first two tax years; and c. Is at least three years old and averaged $50,000 or less in gross receipts for the immediately preceding three tax years (including 2012). 2. File Form 990, Return of Organization Exempt from Income Tax (or the short form, 990-EZ), if your organization had gross receipts greater than $50,000 but less than $200,000 and total assets less than $500,000. Organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more, must file Form 990, NOT the 990-EZ. 3. File Form 990-T, Exempt Organization Business Income Tax Return, with the IRS if, in 2012, your federation or chapter had income (revenue minus cost of goods sold) of $1,000 or more derived from an activity that was substantially unrelated to the main purpose of your federation or chapter. Membership dues, interest on dues, bake sales, white elephant sales, etc., are excluded, but revenues such as advertising revenue are included. Obtain forms and instructions for completing the tax returns from your nearest IRS office or online at list/formsinstructions.html. As discussed above, chapters and federations that do not meet the requirements for filing the 990 or 990-EZ form must file Form 990-N (also known as the e-postcard) electronically with the IRS annually. Form 990-N is not available in paper form. It is only available online at The e-postcard will require that you provide general information about your chapter or federation. You should provide the name of a chapter or federation officer (usually the president) and an address for your organization. Do not use the Alexandria, VA, address of NARFE Headquarters. If a chapter or federation files Form 990 or Form 990-EZ instead of the e-postcard (Form 990-N), it must complete the entire return. Incomplete or partially completed forms will not satisfy the annual filing requirement. The filing deadline for all IRS forms is the 15th day of the fifth month following the end of your fiscal year. Hence, if your fiscal year ends on December 31, 2012, you must file by May 15, Note: NARFE is a 501(c)(5) organization and is exempt from federal income taxes. However, NARFE and its subordinate units are not exempt from state and local sales taxes NARFE Scholarship Program Begins in February The NARFE Scholarship Program for 2013 will run from February 1 through April 26. A copy of the official application appears in the February issue of narfe magazine. Members also will be able to download the application from the NARFE website from February 1 through April 26. (Log in as a member at then click on Special Programs in the left panel of the next screen.) Applicants must be high school seniors who plan to attend an accredited college in the fall/winter of the award year and who are the children, grandchildren or great grandchildren of current (living) NARFE members. Stepchildren and stepgrandchildren also are eligible. Sixty scholarships of $1,000 will be awarded. 8 NARFE Insider Quarterly News for NARFE Leaders

9 More detailed information can be found on the NARFE website by downloading a copy of the F-105 brochure, A Guide to NARFE s Annual Scholarship Awards Program. You also can contact the National Vice President s office for a copy at natvp@narfe.org. The NARFE Scholarship Program relies on the generosity of donors. To make a tax-deductible contribution, checks must be made payable to NARFE-FEEA Scholarship Fund and mailed to NARFE Scholarship Awards, c/o FEEA, Suite 300, 3333 S. Wadsworth Blvd., Lakewood, CO You also can use the donation coupon that appears every month in narfe magazine. NARFE Photo Calendar Contest Opens NARFE is now accepting photos for its 2013 NARFE Photo Calendar Contest. Winning photos will appear in the 2014 NARFE Photo Calendar. All NARFE members are invited to submit a photo, whether or not they ve already had a photo appear in past calendars. The only exception is that members who work as professional photographers are not eligible. Photos must be horizontal in format and 8 x10 or 8-1/2 x11 in size. Each entrant must put the following information on a piece of paper and tape it to the back of each photo: name, address, chapter number, and phone number or address. No photos of children or pets, please. Neither nor Polaroid photos will be accepted. All photos submitted become the property of NARFE and will not be returned. Each member is limited to five photos. Deadline is February 15, Send photos to: NARFE Photo Contest, Office of the Treasurer, NARFE, 606 N. Washington St., Alexandria, VA If you have questions, please pubrel@narfe.org. NARFE National Executive Board Minutes November 13-15, 2012 NARFE HQ, Alexandria, VA Tuesday, November 13, 2012: Call to Order Moment of Silence Pledge of Allegiance Roll Call Presentation of the Agenda Present: National Officers President Joseph A. Beaudoin Vice President Paul H. Carew Secretary Elaine C. Hughes Treasurer Richard G. Thissen Regional Vice Presidents Region I Arthur Pike Region II Evelyn Kirby Region III Don Stewart Region IV Paul E. Johnson Region V Carol R. Ek Region VI Jerome S. Smith Region VII Frank Impinna Region VIII Helen L. Zajac Region IX Lanny G. Ross Region X William F. Martin Staff NEB Executive Assistant Marian Uffen Director of Human Resources Linda Parsons Director of Budget & Finance Tayo Coker- Polson Supervisor of Accounting Veronica Clemons Legislative Director Julie Tagen Guests Maryland Federation Past President Richard Strombotne Washington, DC, Federation President Linwood Watson Washington, DC, Federation Secretary Jacquelyn Lowe NP Beaudoin called the meeting to order. RVP Kirby introduced guests from the Washington, DC, Federation (Federation President Linwood Watson, Federation Secretary Jacquelyn Lowe) and Maryland Federation Treasurer Dick Strombotne. Linda Parsons, director of human resources, distributed a description of each Headquarters office. (Description on file.) National Treasurer (NT) Thissen and Budget and Finance Director Coker-Polson presented and discussed the proposed 2013 budget. (Budget on file.) Following the budget discussion, a motion was presented: Motion # SUBJECT: 2013 Budget. Motion made by NT Thissen and seconded by RVP Ross that the 2013 budget be approved as presented. With a unanimous vote, the motion passed. NP Beaudoin distributed a list of NEB committees for the term, which are as follows: Alzheimer s Committee, Site Selection Committee, Thrift Advisory Board, Federal Employees Education & Assistance Fund (FEEA), NARFE Credit Union, NARFE 401(K) Committee, Scholarship Committee, and Financial Planning and Investment Committee. (List on file) In addition to the above committees, NP Beaudoin requested NEB volunteers for the Audit Committee. 9 NARFE Insider Quarterly News for NARFE Leaders

10 Following a brief discussion, three members volunteered, and a motion was presented: Motion # SUBJECT: Audit Committee. Motion made by RVP Ross and seconded by RVP Zajac that the following individuals serve on the NARFE Audit Committee: RVP Martin, Region X; RVP Smith, Region VI; and RVP Evelyn Kirby, Region II. With a unanimous vote, the motion passed. RVP Martin was selected as chairperson. NP Beaudoin announced the addition of a media room and an office designated for use by NEB members. NP Beaudoin discussed the need for recommendations to address the inevitable changing technological requirements and impact on NARFE s national conventions (beginning in 2018). Following a brief discussion, a motion was introduced to establish a committee to research issues with primary emphasis on technology and communications for future NARFE national conventions, i.e., digitally based, offsite voting by delegates, etc. Motion # SUBJECT: National Convention Communications Committee. Motion made by National Vice President (NVP) Carew and seconded by NT Thissen that the President be authorized to establish a committee charged with the responsibility of analyzing the impact of contemporary communications on future NARFE national conventions. The analysis should include members access to convention proceedings via the Internet, including business sessions, officer training and educational workshops. Furthermore, the committee should evaluate the feasibility of digitally based off-site voting by delegates and voting representatives. With a unanimous vote, the motion passed. NP Beaudoin announced that the 2013 NEB/Federation Presidents (FP) meeting would be designated as the annual meeting as prescribed in the new bylaws and District of Columbia statute. The meeting is scheduled for the week of July 8 at the Rosen Centre Hotel in Orlando, FL. The requirements for an annual meeting are reports by the National President and National Treasurer. Following a brief discussion, a motion was presented: Motion # SUBJECT: Annual Meeting. Motion made by RVP Smith and seconded by RVP Pike that the annual meeting of NARFE for 2013 be held in conjunction with the NEB/FP meeting in July 2013 in Orlando, FL. With a unanimous vote, the motion passed. RVP Ross requested that the Legislative Department explore the possibility of redesigning NARFE-PAC Sustainer pin to reflect one, two, three, four, etc., years of participation by members. ACTION ITEM: Legislative Department to determine feasibility, including cost and practicality. RVP Ross requested that the card and calendar fundraising solicitations mailed to the same household reflect identical requests for contributions. ACTION ITEM: NT Thissen to continue to monitor the fundraising mailings. Director of Legislation Tagen presented a legislative update, which included the demographics of the newly elected Congress and its potential impact on NARFE. She discussed the most likely topics to be considered in the lame-duck session, which begins Tuesday, November 13, and which will most likely lay the framework for a grand bargain, as well as consideration of the doc fix, the Bush-era tax cuts and the payroll-tax holiday. Sequestration will most likely be delayed from January to July. The most likely topics for consideration will be the president s proposal to raise civilian retirement contributions (employees to pay more), the chained CPI and postal reform. Tagen reminded the board that Thursday, November 15, is national call-in day and asked the board to remind members to call their congressional delegations. She presented a Protect America s Heartbeat (PAH) proposal to re-invigorate the boots on the ground program in five targeted states: Initially, the targeted states include Washington, Nevada, Montana, Colorado and Illinois, but this could change upon further analysis of the political landscape. Based on the presentation and discussion, the NEB approved an extension of the existing M&R contract for an additional $50,000 (included in the 2013 budget) through July Progress and need will be monitored closely during the next several months. (PowerPoint on file) RVP Martin requested clarification regarding the Matching Funds program. ACTION ITEM: NS Hughes to provide a fact sheet on requirements for matching funds. RVP Impinna questioned the closed chapter s treasury funds policy, which currently requires the remaining funds to be transferred to Headquarters rather than to the chapters where the members are being transferred. NT Thissen responded that, in order for a chapter to be closed, the chapter treasury must show a zero balance, and that funds to cover the per capita dues are to be forwarded to the active chapter. The remaining funds are transferred to Headquarters to be held in escrow for a period of time as a safeguard in case the chapter is re-established. NT Thissen reminded the board that the federation presidents are responsible for closing chapters. ACTION ITEM: NS Hughes to provide RVPs with an additional policy statement for closing a chapter, as referred to by RVP Impinna (previous memo from National Secretary Brown dated June 2008 to Chapter/Federation Presidents, Subject: Procedures for Closing Chapters). RVP Impinna questioned NARFE s mission and its value. He requested that NARFE s nonprofit status be revisited and asked whether or not NARFE should also establish a 501(c)(3) status in addition to its nonprofit status. NT Thissen responded that NARFE s notfor-profit status has been evaluated in the past, and he will do so again. However, it most likely will not change. ACTION ITEM: NT Thissen will investigate and report back to the board at the March NEB meeting on his evaluation. 10 NARFE Insider Quarterly News for NARFE Leaders

11 With no further business, the meeting adjourned at 3 p.m. Adjournment was followed by an executive session. Wednesday, November 14, 2012: Call to Order Moment of Silence Pledge of Allegiance Roll Call Present: National Officers President Joseph A. Beaudoin Vice President Paul H. Carew Secretary Elaine C. Hughes Treasurer Richard G. Thissen Regional Vice Presidents Region I Arthur Pike Region II Evelyn Kirby Region III Don Stewart Region IV Paul E. Johnson Region V Carol R. Ek Region VI Jerome S. Smith Region VII Frank Impinna Region VIII Helen L. Zajac Region IX Lanny G. Ross Region X William F. Martin Staff NEB Executive Assistant Marian Uffen Director of Membership Bridget Boel Editorial Director Margaret Carter Guests Washington, DC, Federation President Linwood Watson Maryland Federation Past President Richard Strombotne Retired NARFE Public Relations Director Chuck Timanus Past Region II VP Ronald P. Bowers NP Beaudoin called the meeting to order. NS Hughes announced the results of three electronic votes by the NEB regarding: 1. Appointment of the 2013 Bylaws Committee (9 Yeas and 4 Nays-passed); 2. Six-month free membership offer (10 Yeas and 3 Nays-passed); and 3. Moratorium on the establishment of additional enarfe chapters; (8 Yeas and 5 Nays-passed). A brief discussion followed concerning the vote and decision for establishing a 2013 Bylaws Committee. NP Beaudoin explained that a small committee was necessary in order to ensure that the new bylaws reflect NARFE s position on several items in the DC statute, which offer options in certain situations. The goal is to have a final committee report by the July 2013 annual meeting. NS Hughes and Director of Membership Boel presented an overview of the 2013 Membership Strategic Marketing Plan. The plan focuses on the critical membership situation and creating the solutions by assessing what we have learned from the 2012 marketing plan, which was created to slow, halt and find the path to reverse NARFE s membership decline; introduce membership marketing best practices and principles; actively pursue active federal employees; crisis-manage resources; and educate and develop an internal culture of innovative, consistent strategic marketing. NS Hughes stressed that NARFE must be innovative and creative, and embrace current trends in information technology and environmental changes, which are common in membership organizations such as NARFE. Boel presented the 2013 Strategic Membership Marketing Plan, which will focus on three primary and extremely critical areas: acquisition, prospecting and field support. The 2013 Plan is on file and posted on the NARFE website. Ron Bowers, chair of the 2013 Bylaws Committee, presented a brief overview of the committee s progress in addressing the changes deemed necessary to the bylaws. The committee members are as follows: Ron Bowers, chair; John Stackpole (Maryland); John Wheeler (Washington, DC) and Bill Shackelford (Virginia). Officers duties and authority will be the subject of their first report. As work progresses, reports will be forwarded to the NP to determine how to proceed. Decisions with the board will follow. The committee s goal is to have a completed report for presentation at the combined NEB/FP and annual meeting in July 2013 in Orlando, FL. Editorial Director Carter introduced the redesigned narfe magazine, which is scheduled for release with the January 2013 edition. The transition has been ongoing for several months. She presented the background for the redesign and how the magazine will benefit from strategy and planning. The content of the redesigned magazine will focus on NARFE s mission statement and feature two primary areas: Q&A Section (federal benefits) and legislative coverage. The January 2013 issue will be available around December 15. (Background paper on file) NVP Carew presented an overview of a revised enarfe organization and structure. After reviewing the current enarfe situation, it is recommended that in order to meet NARFE s long-term strategic needs, and certainly to maintain the strength of our federations, a single enarfe be considered. The proposal is for a single echapter, maintained by salaried Headquarters professionals. With the single echapter, Headquarters proposed federation-based virtual enarfe Divisions. Federations will be encouraged to establish a robust edivision, with access to all emembers residing within their federation, and will include those members within their federation delegate count. All Division members will have read-and-write access to the enarfe blog (PowerPoint on file). After a lengthy discussion, the following motion was presented: Motion # SUBJECT: enarfe. Motion made by NT Thissen and seconded by RVP Ross that NARFE establish a worldwide enarfe chapter ( Implementation will occur immediately to provide access to federations of all enarfe members information within their ZIP codes. In addition, voting strength for that portion of enarfe membership within each federation s ZIP codes will be transferred to each federation president. This action is established under Rule I, Section 2.B, to benefit membership recruitment and retention (incentive program). With a unanimous vote, the motion passed. Immediately following the above motion, the following motion was presented: 11 NARFE Insider Quarterly News for NARFE Leaders

12 Motion # SUBJECT: enarfe. Motion made by NT Thissen and seconded by RVP Stewart that the moratorium on establishment of enarfe chapters be ended. With a unanimous vote, the motion passed. ACTION ITEM: It was agreed that NVP Carew would prepare a white paper to assist the RVPs in discussing the revised enarfe chapter concept with their particular federations. NT Thissen discussed two remaining recommendations from the One Group Report: officer qualifications and selling/renting the NARFE Headquarters building. With regard to the first recommendation, NT Thissen is in the process of consolidating and analyzing comments, suggestions and recommendations submitted by federations. The additional issue is finding a suitable and fair process to evaluate candidates for national office. With regard to the second recommendation, NT Thissen is recommending that, based on the recent UGL Study (on file), NARFE Headquarters remains in the current building for the near future. Currently, it is more cost-effective than selling the building and moving to another location. He stated that the feasibility of remaining in the current building will continue to be monitored closely for cost effectiveness. RVP Smith discussed the possibility of creating source codes to track those who join NARFE when attending functions/events, such as state postal conventions. He suggested that this effort could possibly act as an incentive to NARFE members who are attending these events and enhance efforts to recruit new members. ACTION ITEM: NS Hughes will further investigate the possibility and feasibility of creating source codes for these activities. NS Hughes will provide the status at the March 2013 NEB meeting. RVP Zajac discussed revised NARFE website issues/problems. In particular, she asked that a more up-to-date search engine be available so that members can more easily search the website. The board was reminded that the new and redesigned website is a work in progress. IT Director Fred Hamidzada invited RVP Zajac and other RVPs to join him in a website session following the board meeting on Thursday. RVP Zajac discussed issues regarding the echapter. First, she reported that some members perceive the echapter as a disguise to maintain national only members. Second, she asked how the echapter handles associate members. NVP Carew responded that the echapter, as well as all local chapters, must address whether or not to include associate members in their chapter bylaws. With no further business, the meeting adjourned at 5 p.m. Thursday, November 15, 2012: Call to Order Moment of Silence Pledge of Allegiance Roll Call Present: National Officers President Joseph A. Beaudoin Vice President Paul H. Carew Secretary Elaine C. Hughes Treasurer Richard G. Thissen Regional Vice Presidents Region I Arthur Pike Region II Evelyn Kirby Region III Don Stewart Region IV Paul E. Johnson Region V Carol R. Ek Region VI Jerome S. Smith Region VII Frank Impinna Region VIII Helen L. Zajac Region IX Lanny G. Ross Region X William F. Martin Staff NEB Executive Assistant Marian Uffen IT Director Fred Hamidzada NP Beaudoin called the meeting to order. NVP Carew requested the board revisit the enarfe organization and structure. Following a brief discussion, a motion was presented. Motion # Motion to amend Motion # SUBJECT: enarfe Structure Addition. Motion made by NVP Carew and seconded by NT Thissen that Motion # be amended to include the edivision structure as envisioned in the White Paper titled enarfe Organization and Structure. It is also moved the National Officers be authorized to prepare the necessary guidelines to implement the motion. With a unanimous vote, the motion passed. A motion was presented during executive session on Wednesday, November 14; the results are as follows: Motion # SUBJECT: enarfe. Motion made by NT Thissen and seconded by NVP Carew that the enarfe incentive of $40 for new members be extended for two years. With a unanimous vote, the motion passed. RVP Smith requested that the board consider all proposed incentives, plus any new incentives as a group, rather than considering each individually. After a brief discussion, the following motion was presented: Motion # SUBJECT: NARFE Incentive Programs. Motion made by NS Hughes and seconded by NT Thissen that the following be established: 1) enarfe Chapter Member. Special incentive of $40 annually for new and existing members; 2) OPM New Member. Limited to direct mail campaigns from NARFE Headquarters, one-year membership fee of $40, two-year fee of $72; 3) NARFE Premier Federal Credit Union-Sponsored Membership of $40 for a one-year membership; 4) Six-month Free Trial Membership. Two direct mail tests of a six-month free trial membership with no more than 30,000 recipients in each of the two tests. With a unanimous vote, the motion passed. (Details of incentives on file) ACTION ITEM: NS Hughes to provide a report on the status of the aboveapproved incentive programs at the March NEB meeting. Director of Membership Boel presented a first draft of the newly designed membership recruiting booklet, which combines several existing brochures. The intent is to provide a much more streamlined approach to prospecting and recruiting. 12 NARFE Insider Quarterly News for NARFE Leaders

13 NS Hughes gave an update on outstanding action items from the last NEB meeting, which were: 1) NP Beaudoin to ensure newly elected Board members receive all NEB correspondence. Status: Accomplished. 2) NS Hughes to: a) Investigate the appropriateness of redesign of posters. Status: In progress. b) Compile results of lunch and learn sessions evaluations at the Convention and share with the NEB. Status: Accomplished. c) Provide a breakdown of enarfe members on recruiting map in magazine and R&R Journal. Status: In R&R Journal, completed; in the redesign of the magazine, the map will disappear. 3) Director of Federal Benefits David Snell to respond to negative comments on the enarfe blog. Status: Monitor the comments on a more consistent basis, and if there is a comment that requires him to respond, he will either respond directly to the comment on the blog for all to see or respond on the blog that he will him/her separately. 4) Update the Manual for Legislative Officers and PAH Toolkit in anticipation of the next Congress (potentially including something on GPO/WEP). Status: Both will be completed around the same time either by the end of the year or early next year depending on our grass-roots activities and needs. Old Business: RVP Smith discussed an unresolved issue regarding tax-free foundation. NT Thissen responded that he will investigate once again, but it is not helpful to us. ACTION ITEM: NT Thissen to provide a report at the March 2013 NEB meeting. New Business: RVP Kirby asked if it would be possible to have an ongoing campaign to request members to update their contact information; i.e., in the magazine. ACTION ITEM: Editorial Director Carter and IT Director Hamidzada will investigate possible methods to accomplish request. RVP Smith requested that a team building session be included in future NEB meetings. It was agreed that the sessions are worthwhile and necessary. NT Thissen distributed the minutes of the Investment Committee meeting conducted on Tuesday, November 13. (Minutes on file.) He requested the board approve a modification to the Life Membership Trust Fund (LMTF) withdrawals. Following a discussion, a motion was presented: Motion # SUBJECT: Life Membership Trust Fund (LMTF). Motion made by NT Thissen and seconded by NS Hughes that we subsidize the LMTF by $24,000 per month rather than by $12,000 per month. This will result in no transfer of funds from the LMTF in With a unanimous vote, the motion passed. RVP Smith requested a discussion of unresolved action items from November 2011 through August 2012, which had previously been distributed to the RVPs by RVP Smith. A brief discussion followed, and it was determined that a report would be necessary to address the outstanding action items. ACTION ITEM: The RVPs will identify any item on the list that they request the NOs to respond to at the March 2013 NEB meeting. RVP Johnson requested consideration to add a sentence to the mission statement that would read We are united RVP Johnson questioned whether or not NARFE had ever operated under a constitution. ACTION ITEM: NP Beaudoin requested the NEB Assistant Marian Uffen research the archives and report her findings to the NEB at the March 2013 meeting. RVP Ross requested that the newly established Convention Communication Committee coordinate with the Site Selection Committee on recommendations for future conventions. All approved recommendations will affect requests for proposals, which must be created to reflect convention needs and parameters. With no further business, the meeting adjourned at 12:15 p.m. **The next scheduled NEB meetings will be held in conjunction with the Legislative Conference on Wednesday, March 6, through Friday, March 8, 2013, at the Renaissance Arlington Capital View Hotel in Virginia; and Tuesday, July 9, through Thursday, July 11, 2013, at the Rosen Centre Hotel in Orlando, FL. Elaine C. Hughes National Secretary NARFE Insider is posted on the website, The following members receive NARFE Insider for NARFE Leaders: Officer codes 1- Chapter President, 2-Chapter Vice President, 3-Chapter Secretary, 4-Chapter Treasurer, 5-Chapter Secretary/Treasurer, 6-Chapter Legislative Officer/National, 7-Chapter Membership Chair, 8-Chapter Public Relations, 9-Chapter Service Officer, 11-Chapter Editor, 12-Chapter Alzheimer s Chair, 13-Chapter NARFE-PAC Officer, 14-Chapter Financial Secretary, 15-Chapter Other, 16-Chapter Net Coordinator, 17-Chapter Legislative Officer/State, 20-Federation President, 21-Federation Executive Vice President, 22-Federation Vice President, 23-Federation Secretary, 24-Federation Treasurer, 25- Federation Secretary/Treasurer, 26-Federation Legislative Chair/National, 28-Federation Legislative Chair/State, 29-Federation PR, 31-Federation Service Officer, 33-Federation Membership Chair, 34-Federation Editor, 35-Federation Alzheimer s Chair, 36-Federation NARFE-PAC Coordinator, 37-Federation Immediate Past President, 38-Federation Other, 39-Federation Executive Committee, 40-Pre-Retirement Speaker, 41-Federation Net Coordinator, 42-FEEA Coordinator, 43-Federation Area Officer, 44-Regional Alzheimer s Coordinator, 45-Regional FEEA Coordinator, 49-Regional Vice President, 50-Immediate Past Regional Vice President, 51-National Officer, 52-Past National Officer 13 NARFE Insider Quarterly News for NARFE Leaders