Volume 16, Number 4, August 2002

RETIREES ON "AMERICAN AMBASSADORS"

The National Geographic TV special on the work of U.S. ambassadors, made with substantial facilitative assistance from AFSA, will air on September 4 from 8:00 to 9:00 p.m. EDT on PBS. Among participants in this documentary program are several Foreign Service retirees, including Ambassadors Thomas Boyatt, Frank Carlucci, Lawrence Eagleburger and Bruce Laingen, who present anecdotes from their careers.

AFSA URGES THAT VISAS STAY WITH STATE

When Congress in June began discussing transfer of visa functions from State to the new homeland security department, AFSA weighed in strongly. President John Naland met with numerous Hill staffers and wrote to 26 key members pointing out the risks in removing visa adjudication responsibility from professional diplomats and giving it to inexperienced new hires in the new agency. (Please see Retiree Vice President Bill Farrand's column in the September Foreign Service Journal for details of AFSA's arguments, which members are encouraged to use in outreach to the public on the Foreign Service.)
The Department's leadership was engaged on this issue. Secretary Powell, while accepting that Homeland Security would have responsibility for visa policy, told the Select Committee on Homeland Security that it is "absolutely essential" to retain the visa issuing function in the department. Praising the work of Foreign Service employees in consulates overseas, he said "We have the experience, the training, the language skills and the dedicated people to perform this mission."

As AFSA State Vice President Louise Crane wrote in AFSANET, "AFSA believes there is no one in the Department who does not see the visa issuing function for what it is - a vital component of national security and an important priority for U.S. foreign policy."

Annuity Office to Move
State Department domestic financial services, including the Office of Compensation and Pension, are in the process of moving from Rosslyn VA to Charleston SC. Pending the move, the office is receiving mail at the general State Department address (Washington DC 20520) and no longer at Rosslyn. Annuitants who need to send mail to the office should call 1-800-521-2553 to check the current address.

LONG TERM CARE OPEN SEASON BEGINS
As open season for the new federally-sponsored long term care (LTC) plan began in July, The Office of Personnel Management (OPM) reported that 130,000 application packets had been requested starting with the early enrollment period in March. Over 16,000 people applied for coverage during that period; OPM expects that by the end of open season on December 31, more than 160,000 will enroll (out of an estimated pool of 20 million employees, annuitants and eligible family members).

Publicity for the federal program is prompting more employees and retirees to focus on LTC insurance. AFSA continues to bring members the latest information and expert opinion on the subject. Following is a summary of steps one might follow in considering whether to purchase any LTC insurance.

LTC INSURANCE: WHAT TO CONSIDER
Here is one approach, summarizing expert advice, to a consideration of long term care (LTC) insurance.

Weigh potential LTC needs. The federal plan's Web site (www.ltcfeds.com) says that 60 percent of Americans reaching 65 will need some LTC. An individual's own health history may affect those odds. Some conditions require LTC briefly (e.g., final stage of a terminal illness), some for years (e.g. Alzheimer's). Regional costs vary: www.ltcfeds.com has information on costs for different areas of the U.S.

Inventory available resources. One's own assets (savings, loans, relatives, etc.) might suffice for limited LTC or until LTC insurance kicks in. With no, or limited, insurance one (drastic) option is to spend down or transfer assets and qualify for Medicaid. Other coverage is restricted. Medicare, unlike Medicaid, does not pay for LTC but can cover limited home health care in connection with skilled nursing care for up to 100 days, with a large patient copay. Some Federal Employee Health Benefit (FEHB) plans offer benefits for limited stays in skilled nursing care facilities but not for LTC. The only exception: If a patient is certified as having a terminal illness and a life expectancy of six months or less, Medicare and some FEHB plans can pay for hospice care, at home or in an institution. With a terminal condition, it is also possible to opt for a living benefit or a viatical settlement from one's federal life insurance (FEGLI) and some private policies, making cash available to the insured now rather than to the beneficiary later.

Compare LTC coverage and premiums. www.ltcfeds.com has a list of premiums and coverages of each of its four pre-packaged plans, and custom-tailored plans, for each year of birth. These can be used for comparing plans offered by others.
Scrutinize plan specifics. Use checklists (such as the worksheet at www.fendonline.com/LTCreport) to help study details such as benefit triggers, definitions of care, benefits for care at home vs. in a facility, etc. Ask if premiums have inflation factors, the plan can be downsized or premiums waived during LTC or returned if the plan is not used within a certain period.

Consider possible future changes. Because LTC insurance is a new field, carriers may have to adjust as they gain experience. Premiums not guaranteed could rise, companies not well established could founder, and qualitative requirements for approval of benefits by coordinators (or gatekeepers) could be tightened.

NARFE MAKES HEALTH CARE PREMIUM CONVERSION A TOP HILL PRIORITY
The National Association of Retired Federal Employees (NARFE) has decided to push harder on bills allowing federal civilian and military retirees to pay their share of federal health insurance premiums with pre-tax dollars, as active employees do now. Faced with a shrinking Congressional work calendar and further increases in health care premiums, NARFE announced in mid-July that its officers and members "will use the remainder of this Congress to concentrate on getting this legislation to the floor of the House and Senate for votes before the November general election." AFSA works in coalition with NARFE, the largest federal retiree organization. AFSA retirees are urged to weigh in with Congress. Details of the bills are available at www.afsa.org and www.narfe.org or from AFSA Congressional Relations Director Ken Nakamura at 1-800-704-2372, ext. 517.

HOME EXCHANGE PROGRAM THRIVING
The Foreign Service Home Exchange Program, established by alumni, is celebrating its sixth anniversary and continuing to grow. Now run by Eileen Janus-Arnold and Gerry Arnold, who live in New Mexico, the program offers its members opportunities for home exchange, home visiting, reasonable rentals or home sitting. Membership is available to members of AFSA, DACOR (Diplomatic and Consular Officers, Retired), USIAAA (USIA Alumni Association) or FCOA (Foreign and Commonwealth Office Association).
Homes are located in various parts of the U.S. and the world. Some recent reviews by participants:

(Paris) "We recommend this apartment to anyone interested in enjoying a good, relaxing and inexpensive base of operations. You need bring nothing with you." (Antigua, Guatemala) "We enjoyed what few travelers abroad have - sampling a fascinating foreign culture from the comfort and convenience of a home."
(Tubingen, Germany) "The house is in the center of the old medieval town. All arrangements were first rate."
(Frisco, Colorado) "I loved vacationing in a real home - for comfort, cost and convenience."
(Sorrento, Italy) "Made us feel at home. The owner's sister living in Naples even took us shopping."
For information, please contact Eileen Janus-Arnold at 505-473-7751 or at ghaeej@aol.com.

LOCAL ASSOCIATION MEETINGS
Foreign Service Retirees Association of Florida: Lunch on October 4 in Naples. Speaker: U. of Miami Professor and Miami Herald editorial writer Max Castro. Contact: Irwin Rubenstein, 954-474-2949.
Foreign Affairs Retirees of New England: Lunch on September 27 in Old Saybrook CT. Contact: Gina Crocker, 978-734-1284.
Foreign Affairs Retirees of Northern Virginia: Lunch on September 25 at Ft. Myer. Speaker: AFSA President John Naland. Contact: Virginia Aldridge, 703-790-0775.

To publicize meetings in this space, please contact Retiree Liaison Ward Thompson at 1-800-704-2372, ext. 528 or at thompsonw@afsa.org as far in advance as possible.