Chapter Newsletter. Pendleton, Oregon

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1 Chapter 2115 Newsletter Pendleton, Oregon Officers President Lyle Jensen Vice President John Robertson & Programs Legislative Lyle Jensen Secretary/Vacant Alzheimer s Colleen Hewes butchandcolleen@wtechlink.us Treasurer Bernie Hewes butchandcolleen@wtechlink.us Volunteer Rachel Eastman racheleastman@charter.net Public Relations Janet Lambert Membership...Bernie Hewes butchandcolleen@wtechlink.us Service Lois Horton lh888@q.com Sunshine...Rachel Eastman racheleastman@charter.net District 2A Representative...Colleen Hewes butchandcolleen@wtechlink.us Editor John Robertson jrobertson@wtechlink.us Inside this Issue President s Report Page 1 Legislation Page 2 Chapter Meeting Notes Page 4 OPM Changed Benefits Page 5 Expectations for E-Board Page 67 Notes from the Editor Page 7 Next Meeting Page 8 Elected Officials Page 8 NARFE Congressional Switchboard Page 8 NARFE Websites Page 8 National Active and Retired Federal Employees Association Volume 13 Issue 4 April 2018 President s Report ~ Lyle Jensen Last month's newsletter contained the timeline for NARFE's National Election process. NARFE is now well into the process with a projected May (internet) though June (mail) vote. The March NARFE magazine contains the National Officer and Regional VP candidates' statements (pages 52-64). The April edition has a one page summary of the Bylaws and resolutions Committee report (p. 56), with recommendations for adoption or rejection of proposed changes. In my view, the highly condensed report is disappointing since a summary of the committee's rational behind their recommendations should have been included in the magazine. Linda Silverio, Oregon Federation President, is encouraging members to do their homework and vote. But I believe that few, if any, Chapter members will want to download the 184 page Bylaws and Resolutions report. Perhaps some members will order the report booklet. Members could also engage in the dialogue on the NARFE blog in the membersonly section of the website. To help Chapter members, I am planning to pull together a small group in late April to review the Bylaws and Resolutions documents and provide a Chapter recommendation with rational. At the May Chapter meeting, we'll report and discuss the group's findings. We'll also publish the results in the May newsletter. Welcome to new NARFE members - Cynthia Doherty, Marilyn Johnson and Kevin Martin - to the Chapter. Several others "re-upped" their Chapter membership during March. The Chapter membership had been slowly declining. I checked in with several members who apparently "dropped out" or at least dropped off the Chapter roster. Most indicated that they had renewed their NARFE membership. They also thought that they were still a member of the Chapter. It is apparent to me that confusion still exists over the renewal form and process. If a member wants to renew both the National and Chapter memberships, one must carefully check the renewal form, check the appropriate box and pay the fee that covers both NARFE and the Chapter. Some may want to renew just for NARFE only; this is okay. But I strongly urge members to NARFE Chapter 2115 Newsletter Volume 13 Issue 4 1

2 consider the benefits and value of being a Chapter member when renewing. The program for the April meeting will feature James Setzer, Umatilla County Health Administrator. He is relatively new to the job so it will be interesting to hear his perspective on the current health situation in the county. See you at Shari's Restaurant at 11:30 a.m. on April 12. Lyle L EGISLATION By Lyle Jensen The House and Senate finally passed the $1.3 trillion Omnibus Spending Bill to fund the government through the end of fiscal year (FY) On March 23, President Trump signed the bill into law. Passage of the appropriations bill ended the threat of another government shutdown or another stop-gap Continuing Resolution. In February, Congress passed a bipartisan spending agreement that increased annual discretionary spending by $300 billion over the next two fiscal years. Defense spending will increase by $80 billion in FY18 and $85 billion in FY19. Domestic spending caps will rise by $63 billion in FY18 and $68 billion in FY19. Offsets worth about $100 billion were approved. However, the spending agreement final budget and contained no cuts to the Federal communities' pay and benefits. Several provisions in the FY18 Omnibus Spending bill are of interest to members. A 2.4 percent pay increase for military personnel was included. Federal employees were provided with a 1.9 percent average pay increase in 2018; the President has proposed a pay freeze in NARFE has long advocated pay parity for military and civilian Federal personnel. Contained in the bill was a provision that adds a layer of protection for Federal agencies and employees. The provision states that no cut in funding or elimination of a Federal program based on a presidential budget request for a fiscal year can take place until it has been approved by Congress. The bill's language could slow or block agency reorganization plans that the Administration wants to pursue. In line with past appropriations bills, the Omnibus extends a few policies applicable to the Postal Service. The text requires that "6-day delivery and rural delivery of mail shall continue at not less than the 1983 level." It also stipulates that no funds provided by the bill "shall be used to consolidate or close small rural and other small post offices." The increase did not include the Administration's proposal to boost the maximum buyout payment, government-wide, from $25,000 to $40,000. NARFE expects the threats to continue. President Trumps' FY19 budget contained a laundry list of 11 proposed cuts to earned pay and benefits, described in the March newsletter. Most of the proposals are ones we have seen before. The focus now shifts to Congress. Congress will follow with their own FY19 budget proposals in Congressional Budget committee reports and House and Senate Budget Resolutions. According to a March 27 FedWeek.com report, Congress is likely to adopt (or at least address) most, if not all, of President Trump's budget agenda and administrative proposals. Included are other proposals lengthening the waiting period for GS within-grade increases, creating a central (Continued on page 3) NARFE Chapter 2115 Newsletter Volume 13 Issue 4 2

3 LEGISLATION (Continued from page 2) fund to pay for performance, combining annual and sick leave into "paid time off" and possibly taking a position on Federal pay for Some time ago, the Holman Rule was discussed in a newsletter article. Under the Holman Rule, an amendment may be offered during floor debate on an appropriations bill that reduces the number of Federal employees at an agency, reduces the salary of an individual Federal employee or group of employees, and can even eliminate one particular Federal position. On March 20, the House reinstated the Holman Rule through 2018 with passage of H.R In July 2017, members of the House Freedom Caucus (Tea Party) used the Holman Rule to propose an amendment that would have eliminated the Congressional Budget Office's budget analysis division, comprised of 89 people, because they were unhappy with how that division scored repeal of the Affordable Care Act. The amendment was voted down by members of both parties. This instance highlights the vulnerabilities the Holman Rule creates for Federal employees. Revival of the Holman Rule creates substantial uncertainty for federal employees who could be subject to how the political winds are blowing at any given time. Decisions affecting Federal employees and programs could be implemented without necessary hearing and debate. NARFE is closely monitoring any potential use of this rule and its impact. On March 20, President Trump unveiled the administration's new Federal management agenda. The President's Management Agenda (PMA) is essentially the president's strategy for improving the management and performance of the Federal government. This new management plan is centered on the idea that the American public is frustrated with the current delivery of government services. The new management plan will try to alter the customer experience with the Federal government to be more in line with customer service through the private sector. President Trump's PMA focused on three key areas: delivery of mission outcomes; excellent service; and effective stewardship of taxpayer dollars. The Trump Administration asserts these goals can be achieved through three key elements: modernization of the government's information technology resources; data accountability and transparency to track performance; and a modern workforce. The management plan did not include discussion regarding agency reorganization plans. A new Postal Reform Act (S. 2629) was introduced in the Senate by Senator Thomas Carper (D-DE) and three co-sponsors. The Senate bill would require current USPS retirees to enroll in Medicare Part B in order to continue receiving their current health insurance coverage through the FEHB program. Ultimately their overall health insurance premiums would rise an additional $1,600 or more per year, despite the fact that they previously declined this coverage. The leading House Postal Reform Bill (H.R. 756), includes this requirement as well. The House bill was approved by the House Oversight and Government Reform Committee but has since stalled. The goal of this requirement is to decrease USPS health insurance costs by shifting primary responsibility for retiree health care costs from USPS to Medicare. The shift in responsibility would cost taxpayers $10.7 billion over 10 years. NARFE opposes the bill because it unfairly burdens tens of thousands of postal retirees and their survivors by changing the bargain regarding their health benefits after retirement, removing choice with regard to their health care. A dangerous precedent would be set for all Federal employees and retirees as it adds a new condition to the receipt of promised and earned benefits; it could be applied to non-postal retires as a means to cut government health insurance costs. NARFE President Richard Thissen indicated that the bill is a plan to "balance the Postal Service books on the backs of Postal retirees." He also noted that lawmakers should tackle the Postal Service financial issue head-on rather than the proposed complicated route. Several options exist. Lawmakers could raise the price of postage, including bulk mailing. Or allow the Postal Service to pay their (Continued on page 4) NARFE Chapter 2115 Newsletter Volume 13 Issue 4 3

4 LEGISLATION (Continued from page 3) health care bills when due by ending the burdensome health care pre-funding requirement. However, S does contain several improvements over the leading House postal reform bill, H.R The Senate bill would address circumstances that NARFE found particularly concerning and had stressed to members of Congress. First, S includes an exception for those living in a geographic area "in which there is a lack of participating Medicare Part B providers." This allows those who retired overseas, for example, where doctors do not accept Medicare to be exempt from the new requirement. Second, it includes an exception for those who "would not derive benefit from enrolling in Medicare Part B because of comprehensive medical coverage provided by the Dept. of Veterans Affairs or other programs." Both of these provisions prevent the bill from imposing a new cost without any benefit at all for the postal retirees in question. While most bills must be considered by the relevant committee, Senator Carper, the bill's sponsor, has requested a Rule XIV waiver, which allows the bill to bypass the committee process and be placed on the calendar for consideration. This could prevent the type of thoughtful attention, thorough review and commonsense amendments the committee consideration allows. NARFE is urging lawmakers to reject this troubling process and objecting to consideration of the bill only by the full Senate. NARFE members should contact their legislators and urge them to oppose both bills. NARFE believes that members must act now to prevent this legislation from becoming law. NARFE and its partners fought successful rear-guard actions in protecting pay and benefits in Mike Causey, in several columns (FederalNewsRadio.com, Feb. 8, 15 and March 29) stated that it was a close call; most expect Congress to try again. His view is that three factors may reduce some of the pressure on pay and benefits in The Compromise FY18 budget deal and the Omnibus spending bill are silent on any cuts or changes in Federal benefits. Both the House and Senate have restricted working schedules for the year. And the Mid-Term elections will see lawmakers on the campaign trail. A record number of House members are retiring this year. Still, Congress, particularly the House, is expected to come back with some (if not all) of the cuts they proposed last year through the FY19 Budget process. Part of the process is being driven by the Heritage Foundation (A far-right think tank), their people in the White House and their reports including "Why It's Time to Reform Compensation for Federal Employees." NARFE's strategy is to continue playing defense using the campaign similar to last year (2017). On March 23, I attended the Democratic forum of seven candidates vying for Representative Walden's position. Unfortunately I was not able to ask a question (didn't draw a ticket). None of the candidates mentioned the Federal family, its pay and benefits. As a group of candidates, the group was much "stronger" than I had seen in the past. April is starting out to be a busy month. I will be visiting with Tucker Billman, Representative Walden's local field rep. in LaGrande on April 9. I sent him a list of questions, which we will be discussing; I plan on addressing Representative Walden's to me about reforming civil service pensions and the Fiscal Commission's recommendations (see February newsletter). The Chapter has Tucker "penciled in" to be the speaker at our May meeting. I also plan on attending Senator Wyden's town hall in Boardman on April 4. Perhaps I can address the concerns about the proposed Senate Postal legislation. As of this report, Senator Merkley has yet to identify a replacement for Karen Wagner in the Pendleton field office. Our contact person is still Amy Amrheim in the Senator's Medford office. M NARFE Meeting Minutes - March 8, 2018 Meeting called to order by Lyle Jensen, President. Members present: 12. Guest: 1. Meeting minutes in newspaper approved as printed. Treasurer's Report: As of last meeting, $2, Chapter dues ($93.34?). Paid $200 to Lois for newsletter. $2, new balance. Approved. (Continued on page 5) NARFE Chapter 2115 Newsletter Volume 13 Issue 4 4

5 MEETING MINUTES... (Continued from page 4) President Report: None. Legislation: Lyle explained some legislation - Continuing Resolution funds the government through March 23. Trump's 2019 Budget is a laundry list of cuts to pay and benefits, we've seen before. Most hit employees. For retirees - COLAs being cut for FERS; CSRS small deduction - probably pay more for health insurance. Program: Jill Johnson gave a talk on Alzheimer's and a nice handout to help us research further on our own. $12,700,000 collected to date. All donated by NARFE for Alzheimer's Research. New Business: NARFE Federation Question List - discussion among members about concerns. District Reps used to bring back info to Chapters - maybe some chapters not getting this info anymore. Need to get Nationalonly members list to the Chapters. Improve membership outreach. Share reports, information better from National to State to Chapters and vice versa. Have lost the service function. Membership: Bernie and Lyle went to Forest Service-we have two new members (Marilyn Johnson and Cynthia Doherty). Also a new member signed up from Postal Service. Sunshine: Get Well to Janet Lambert. Thinking of you to Sid McFarland. Meeting adjourned at 1:20 p.m. Recorder: Rachel Eastman O PM Retroactively Changed Retirement Benefits Without Notice By Lyle Jensen (From Federaltimes.com 2/9/18 and follow-up NARFE information) Divorced former federal employees getting annuity supplements received a surprise in their financial statements in 2016, as the Office of Personnel management (OPM) retroactively changed their policy on whether a portion of those annuity supplements is due to a retired employee s ex-spouse, according to a Feb. 5, 2018, Inspector General (OIG) report. Retirees and the former spouses learned of OPM s decision only when their annuity amounts changed many years after the parties had divorced, after a state court had ordered a former spouse s marital share, and after OPM had accepted the state court order for processing, the report said. In addition, OPM applied this new interpretation retroactively to the date when the retiree started receiving an annuity supplement, resulting in a debt due from the retiree to the former spouse. OPM s new policy has been causing immediate and several financial disruption to annuitants. Moreover, OPM s new policy improperly changes previously litigated final state court orders without notice to annuitants. Annuity supplements are paid in addition to basic annuity to certain federal retirees who retire before they are eligible for Social Security. Previously, the OPM policy was to treat annuity supplements like Social Security, making them not allocable between former spouses unless otherwise outlined in divorce settlements. OPM asserted that the change was made due to legal requirements, though the OIG concluded that language of the statute simply does not mandate the conclusion that the Basic Annuity and the Annuity Supplement should be deemed to be one and the same. The OIG also found that OPM does not have the authority to resolve ambiguities in court documents, meaning that if a court order of a divorce does not address annuity supplements, OPM s responsibility is to return the order to the court to resolve the ambiguity. Barring this lack of authority, OPM is still required to issue public comment and notice of such a change, and cannot make the new interpretation retroactive, according to the OIG. The OIG recommended that OPM cease implementing the changed policy, reverse decreased annuities that were part of the new policy and examine whether it has a legal requirement to make updated guidance available. OPM disagreed with all three recommendations. OPM also attempted to prevent the publication of the Continued on page 6 NARFE Chapter 2115 Newsletter Volume 13 Issue 4 5

6 OPM (Continued from page 5) OIG report on the basis that it represented a legal argument that could be used by annuitants in appeals over the agency s decisions. OIG declined the OPM request as it would go against the purpose of the IG outlined in the Inspector General Act of NARFE heard from a number of confused and upset members on this issue. In a follow-up response, NARFE President Richard Thissen sent a letter to OPM, urging the Acting Director to follow the OIG recommendations. Thissen urged OPM to rescind the issued policy guidance and reverse any action to retroactively or prospectively reapportion a retirees' FERS Annuity Supplement. In a response letter to President Thissen, OPM continued to reject the three OIG recommendations, noting that is "did not consistently apply apportionment to the FERS Annuity Supplement when a divorce order was issued. OPM recognized this inconsistency and has taken steps to correct its practices and notify annuitants and their former spouses of the matter." NARFE will continue to keep members updated on this issue. xpectations for the Federation E-Board: A Discussion By Lyle Jensen - March 21, 2018 E (Report ed to Linda Silverio, Federation President, and members of the Federation Executive Board) At our March meeting, the Pendleton Chapter discussed the role and value of the Federation. We discussed the five questions posed by Linda Silverio in her February 6 . The role and value is spelled out in the Federation Constitution Goal Statements. The E-Board needs a good discussion of these goals, focused on developing an assessment of how well it is doing. In general, our view is that the Board needs to take on a more activist approach to management (even with reduced funding) within the scope of the Goals. NARFE is a dispersed organization. One of the key roles of the Federation is to be the two-way conduit between Chapters, National-only members and National Headquarters. This is an area that needs strengthening; the E-Board needs to be more forceful in taking problems and concerns to National Headquarters. Several examples may suffice. Chapter membership payment process and Chapter member renewal is a mess. Chapters have new NARFE-only members all around but are not allowed to know who they are. This is a travesty! In fact, it is hard to know what is being done at the Federation level about membership recruitment and retention beyond Becky Stiles' efforts at conventions. Chapters are on their own in the membership area. A second example is with the October 2017 Strategic Plan, which is already affecting our future. The Strategic Plan seems to have happened without input from the field, other than our two representatives on the Committee. Already the Strategic Plan seems to have an impact on the organization and operations. However, numerous concerns are prevalent throughout the Plan. The E-Board should have gathered Oregon member input, addressed the concerns and brought them to the attention of the National organization. Opening up the communications channel might have increased understanding and support for changes that are occurring, including new initiatives, new vocabulary and job titles (and perhaps the election process). The Federation currently seems to have a minimum or no role in the Service Area and is providing limited help to members. Linda Silverio has occasionally provided "tidbits" of useful information such as addressing various tax issues and providing advice on health insurance. The Service area vacuum has been entirely filled by the National Headquarters with the Federal Benefits Institute webinars and benefits expertise. The need and demand for information by those employees near retirement or recently retired is very high, given that personnel departments have been downsized or moved. Service to members needs evaluation by the E-Board, to develop "out of the box or no box" ideas for improvement. The E-Board has put most of its energy, focus and funding on Federation Conventions. The Convention process has always had the potential for providing and sharing information. But conventions have received mixed reviews from activists in our Chapter who have attended in the past, from they are "okay" to "it was a turn-off". Usually, the Chapter attempts to keep members "in the loop" about NARFE happenings via meeting discussions and newsletters. If a member was paying attention at the (our) Chapter level, it was probably not very useful to attend a Convention. If the E-Board focuses more on Conferences and less on "Annual Meetings" (a substitute for conventions?), the Federation will, in part, be redeeming its information role. I personally have learned more at a few conferences than conventions. Currently, the strongest point of the Federation is in the area of information (transfer), including District Representatives, Legislation and Federation Newsletter. The District Representatives have done a reasonable job of keeping Chapters "up to date" on legislation, service and organizational issues. District Reps (and E-Board for that matter) have never really addressed or "solved" the leadership and Chapter closure issue. However, the role of the District Reps is likely to diminish as more Chapters close, as a greater percentage of members are National-only and as the National Headquarters expands its reach through the Internet (website, social media, Continued on page 7 NARFE Chapter 2115 Newsletter Volume 13 Issue 4 6

7 E-BOARD EXPECTATIONS (Continued from page 6) etc.). Legislation is another area of strength because Ruthann Couch has done a great job of keeping key folks "in the loop" with information on Town Halls, Talking Points and Legislative issues. The E-Board should consider a wider distribution of legislative information; there are several ways to accomplish this wider distribution, but any change needs to be well publicized (and known to all members). The National Organization seems to be focused on a Do-It-Yourself approach to Legislation and Advocacy. The apparent change maybe "taking over" anything and everything we do "locally". Ruthann has also done an excellent job with the Federation newsletter. The E-Board should also consider a wider distribution of the Federation newsletter to all NARFE members in Oregon. The Federation will need to stay connected to all members to provide value. Years ago when I was an E-Board member, I proposed that the Board develop and implement a yearly action plan that includes one or two emphasis items, issues or problems to be worked on. I was thoroughly shot down. As a result, the Board settled into just doing the routine stuff that basically were activities carried over from the past. The primary "task" was the Federation Convention. But in the current environment, problems and changes are happening all around us that need to be addressed by the E-Board. One of the first steps is to review the Federation goals (as implied in Linda's e- mail) and make changes as necessary. A second step is to prepare a plan of action and work on it to address the identified problems and issues. If the Federation E- Board doesn't take on a more activist role, then I believe that the National Organization (Headquarters) will continue the move toward a top-down organization, a future envisioned in the FON Report. The Federation might not remain viable. otes From The Editor By John Robertson N This month we will look at actual court room records. These questions and answers are from several different cases. I CAN T BELIEVE YOU SAID THAT. ATTORNEY: What was the first thing your husband said to you that morning? WITNESS: He said, Where am I, Cathy? ATTORNEY: And why did that upset you? WITNESS: My name is Susan! ATTORNEY: What gear were you in at the moment of the impact? WITNESS: Gucci sweats and Reeboks. ATTORNEY: What is your date of birth? WITNESS: July 18th. ATTORNEY: What year? WITNESS: Every year. ATTORNEY: Now doctor, isn t it true that when a person dies in his sleep, he doesn t know about it until the next morning? WITNESS: Did you actually pass the bar exam? ATTORNEY: She had three children, right? WITNESS: Yes. ATTORNEY: How many were boys? WITNESS: None. ATTORNEY: Were there any girls? WITNESS: Your Honor, I need a different attorney. Can I get a new attorney? ATTORNEY: Doctor, before you performed the autopsy, did you check for a pulse? WITNESS: No. ATTORNEY: Did you check for blood pressure? WIITNESS: No. ATTORNEY: Did you check for breathing? WITNESS: No. ATTORNEY: So, then it is possible that the patient was alive when you began the autopsy? WITNESS: No. ATTORNEY: How can you be so sure, Doctor? WITNESS: Because his brain was sitting on my desk in a jar. ATTORNEY: I see, but could the patient have still been alive, nevertheless? WITNESS: Yes, it is possible that he could have been alive and practicing law. ATTORNEY: Can you describe the individual? WITNESS: He was about medium height and had a beard. ATTORNEY: Was this a male or a female? WITNESS: Unless the Circus was in town I m going with male. NARFE Chapter 2115 Newsletter Volume 13 Issue 4 7

8 John Robertson Best Road Pendleton, OR Address Service Requested NARFE Chapter 2115 Next Meeting. Thursday, April 12, 1130 am Location. Sharis Program: James Setzer, Administrator Umatilla County Public Health ELECTED OFFICIALS U.S. Senate Ron Wyden: La Grande contact: Kathleen Cathey FAX U.S. Senate...Jeff Merkley: FAX - Amy Amrheim U.S. Representative Greg Walden: FAX La Grande contact:tucker Billman Tucker.Billman@Mail.House.Gov NARFE Congressional Switchboard (This is a toll free number) Ask for your Representative or Senator White House.. ( ) NARFE...National Office Oregon Federation NARFE Chapter 2115 Newsletter Volume 13 Issue 4 8

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