| AFSA | RETIREE NEWSLETTER |
June,
2006
Volume 20, Number 3 |
American
Foreign Service Association, 2101 E Street NW, Washington, DC, 20037
Web: www.afsa.org E-mail afsa@afsa.org
Phone number (800) 704-AFSA
HR/RET Customer Services
HR/RET recently initiated a workload management system designed to track assigned tasks and to ensure timely and accurate responses to retiree requests for information and service. The new system will end the alphabet-based assignment of counselors to clients.
All requests for service will be logged into the RET Workload Distribution and Tracking System. After receiving a request for service, HR/RET will e-mail the retiree a tracking number, a delivery time frame and the name of his or her assigned counselor. If a retiree does not have e-mail, he or she will not automatically receive this notification. However, retirees may make a follow-up call to HR/RET and request this information.
AFSA congratulates HR/RET on its new workload management and customer service improvements. However, we are concerned that a significant number of retirees - for reasons of age, health, economics, training or generation - will not have full access to HR/RET services or information because they do not have e-mail. About half of AFSA's retiree members (about 2,000 retirees) do not.
The department has the obligation to provide timely and comprehensive retiree services to all it retirees. We ask the department to routinely use other modes of communication to supplement the HR/RET e-mail system. This could include the alternative use of computer-generated written responses, mailings or telephone calls. This will assure that retirees get timely assistance and give HR/RET additional tools to manage fully its workload.
Class Action Suit: Payment for Unused Annual Leave
Employees who retired, died or were separated during the six-year period between 1993 and 1997 and who received a lump-sum payment for their unused leave may be entitled to additional compensation for this leave.
Parties to Archuleta v. United States have entered into a settlement agreement providing that the United States will pay $7,487,134 to a common fund administered by an independent settlement administrator. Approximately 150,000 former federal employees may be eligible to receive back pay in this case. The preliminary settlement does not become final until it is approved by the Court of Claims after a fairness hearing in early June.
If the agreement is approved, claimants will have to submit a claim to the settlement administrator. Potential claimants, who have been identified by their agencies, will receive instructions about how to file claims.
The basis for the case is the following. When a federal employee retires, dies or separates, he or she may be paid a lump sum payment for any unused leave. The payment must equal the amount the employee would have received if he or she had stayed on as an employee until his or her leave had been fully used. This means that if this period extended into another year with a higher pay schedule, the employee would have been entitled to the higher pay level for the period of time that extended into the next year.
The settlement also applies to two other kinds of compensation that should have been paid as if an employee had stayed on until his or her leave had been fully used. These are regularly-scheduled Sunday premium pay and foreign post allowances for off-base housing for employees who retired, died or separated abroad.
Former federal employees may be eligible for this additional compensation plus compounded interest if they:
Retired,
died or separated between April 7, 1993, and September 7, 1999, from
one of 17 federal agencies, including the Departments of State, Commerce
and Agriculture.
Had unused annual leave when they retired, died or separated and were
not paid the proper lump-sum payment at that time or later in a supplemental
payment.
Each former employee entitled to recovery must file a claim form and submit documentation in support of his or her claim. At this point, however, there is no need to do anything. Following court approval, the settlement administrator will send class members distribution packages that contain claim forms.
AFSA will update retiree members as more information becomes available. For more information now, go to mylumpsumpayment.com or to AFSA's Retiree Web site.
Secretary Rice Participates in 2006 AFSA Plaque Ceremony
The names of Diplomatic Security Agent Stephen E. Sullivan, Department of State Facilities Maintenance Officer David E. Foy, Department of Defense civilian Barbara C. Heald and Navy Reserve Lieutenant Commander Keith E. Taylor were added to the AFSA Memorial Plaque this year. The plaque was unveiled at a ceremony in the department's C Street lobby during Foreign Affairs Day on May 5th.
The Plaque honors Foreign Service and other federal government employees who lost their lives overseas in the line of duty or under heroic or other inspirational circumstances. The four names bring the total number of names to 222.
After introducing Secretary of State Condolezza Rice, AFSA President Tony Holmes welcomed the families and friends of the fallen colleagues. He extended his condolences and gave recognition to the great sacrifice the four honorees and their families had made in service to their country.
Secretary Rice read a message from President Bush and then spoke in moving remarks about each of the four. After the ceremony, the Secretary moved into the audience and spoke with the families and friends of the honorees.
Dignitaries who attended included Congressman James McGovern of Massachusetts; Randall Tobias, USAID Administrator; Michael Yost, Foreign Agricultural Service Administrator; Ambassador Richard Griffin, Assistant Secretary for Diplomatic Security and Dean Popps, Principal Deputy Assistant Secretary of the Army and Director of the Iraqi Reconstruction Office. Also attending were representatives for Virginia Senator John Warner and South Carolina Congressman G. K. Butterfield.
AFSA Day on the Hill
On May 4, 50 AFSA retirees, active duty Foreign Service members and staff fanned out over Capitol Hill to talk to congressional representatives and staff about issues of importance to the conduct of foreign affairs and retiree benefits. Visiting 29 congressional offices, representing 10 states, AFSA members spoke of their concerns about foreign affairs funding, overseas comparability pay, the WAE cap and Health Savings Accounts (HSAs).
Ken Nakamura, AFSA Legislative Affairs Director, noted that having constituents in the room adds an important dimension to our educational program on the Hill. Their presence, he said, adds force to our efforts to explain and illustrate the critical Foreign Service role in protecting and promoting our national interests in the world arena.
Commemorative Stamps Honor Diplomats
The U.S. Postal Service (USPS) released a series of six commemorative stamps honoring "Distinguished American Diplomats" at a special ceremony Tuesday, May 30, at the Washington, D.C. Convention Center as part of the World Philatelic Exhibition. The event included a videotaped message by Secretary of State Condoleezza Rice.
The release of these stamps is the culmination of almost a decade of collaboration among AFSA, the U.S. Postal Service, the Department of State, and other organizations in developing this historic series. The series features six diplomats who were chosen for their exceptional contributions to international relations. They served not only as negotiators and administrators, but also as trailblazers, shapers of policy, peacemakers, and humanitarians. The diplomats are Hiram Bingham IV, Frances E. Willis, Robert D. Murphy, Clifton R. Wharton, Sr., Charles E. Bohlen and Philip C. Habib.
New Long-Term Care Web Site
The Office of Personnel Management has launched a new, improved Web site for the Federal Long Term Care Insurance Program (FLTCIP). The FLTCIP offers group rates to federal employees and retirees.
The new Web site contains revamped educational sections on long-term-care basics and insurance. It also offers a tool that will calculate the average cost (in 2005) for home health care, assisted-living facilities and nursing homes in the customer's area, and another tool that will calculate premiums for the FLTCIP's pre-packaged and customized plans. Visit the Web site at www.LTCFEDS.com.
Legislative Update
As anticipated, the Office of Personnel Management (OPM) recently sent a formal legislative proposal to Congress seeking to increase the number of high-deductible, consumer-directed options (HSAs) in the Federal Employees Health Benefits Program (FEHBP). This would allow Blue Cross/ Blue Shield, the largest provider, to offer HSAs. As discussed in our last newsletter, our concern is that the inclusion of a Blue Cross HSA plan would adversely affect the risk-sharing nature of FEHBP. We will be monitoring this issue closely and will keep you informed about any developments and need for member action.
What Your Spouses Need to Know
In the event of your death, will your spouse or executor know how to go about reporting your death to the Office of Retirement? Will your spouse know how annuity payments and Federal Employees Health Benefits Program (FEHBP) coverage will continue? What about collecting Federal Employees Group Life Insurance (FEGLI) life insurance benefits? If not, it's time to sit down together and talk about this eventuality and to organize your financial files so that critical financial information is readily available and understandable.
A surviving spouse should notify the Office of Retirement (at (202) 261-8960 or toll free (866) 224-9053) immediately about the death of a foreign affairs agency annuitant. In doing so, he or she should provide the full name of the annuitant, dates of his or her birth and death, Social Security number and relationship of those who may be entitled to survivor benefits. Within 24 hours of receiving this notification, the Office of Retirement will examine the records of the deceased annuitant and send the surviving spouse an Application for Death Benefits and information about FEHBP and FEGLI benefits. If the completed application is returned by mail or faxed to the department before the 15th of the month, the surviving spouse will receive an annuity payment the following month.
If the annuitant had FEGLI life insurance coverage, the Office of Retirement will certify the date of death to the Office of Personnel Management (OPM), which in turn will send instructions and claim forms to the designated beneficiaries. If these do not arrive within five weeks, the survivor or executor should write directly to OPM (Attention: CSI/LI/Roll Maintenance, Employee Service and Records Center, P.O. Box 45, Boyers, PA 16017). This letter should provide the full name of the annuitant, date of his/her birth, the name of the retirement system (FSRDS or FSPS) and the annuitant's identification number, which is prefaced by the letters CSI- and found in the annuitant's insurance certification document and in the department's letter of instructions.
If the annuitant had a self-and-family FEHBP enrollment at the date of death and a survivor annuity is payable, the surviving spouse can continue health coverage. It is important that the surviving spouse inform the department of the death of the annuitant immediately since there is a 60-day period after the death of an annuitant in which the department can act to assure this continuation. In doing this, if there are no other eligible family members, the Office of Retirement will automatically change the family enrollment to a self-only enrollment. The premiums for the surviving spouse will be deducted automatically from the survivor annuity.
The time following the death of a spouse is a difficult one. One way to make this time easier is to talk about what to do in this eventuality, and to create files for the surviving spouse and executor that have all the department documents that pertain to survivor benefits. At a minimum, the file should include: a copy of the Foreign Service Death Benefits Claim Information, JF 37 Election of Annuity Benefits (Survivor Benefits Election), DS 5008 Election of Less Than Maximum Survivor Benefit and SF 2823 Designation of Beneficiary (FEGLI Program). The survivor should also know that a number of copies of the annuitant's death certificate may be required, not only by the government, but also by financial institutions.
Dental/ Vision Benefits
The Office of Personnel Management (OPM) has chosen 10 companies to provide supplemental dental and vision insurance to federal employees and retirees and their dependents.
OPM, which oversees benefits for federal employees and retirees, selected MetLife, GEHA, United Concordia, Aetna, GHI, CompBenefits and Triple-S for dental coverage, and Vision Services Plan (VSP), BCBS Vision and Spectera for vision. The dental providers chosen include both national and regional carriers; all the vision providers are national carriers.
In soliciting contracts OPM said that all dental insurance plans should provide preventative care (oral evaluations, topical fluoride treatment and sealants) for a small co-pay; more extensive services (extractions and root canal surgery) at 70% coverage after the deductible; and major dental work (crowns, bridges and dentures) at 40% after a deductible. Deductibles are not to exceed $100. OPM also said it expects contractors to provide orthodontia coverage of at least 30%.
With respect to vision coverage, OPM asked providers to offer full coverage for annual eye examinations, including comprehensive exams for problems such as glaucoma, diabetes and ocular hypertension. Companies may contract to provide eyeglasses and contact lenses, as well.
Dental and vision insurance is voluntary. Federal employees and retirees will be able to select dental and vision insurance plans during an open season, which begins on November 13. The Dental and Vision Insurance Program goes into effect on Dec. 31, 2006. As is the case with long term care insurance, participants will pay the entire cost of the premiums; there will be no government contribution to premiums.
Retirees and State Taxes
In choosing where to retire, it is tempting to look at states with no income taxes or no taxes on pension income. But be careful. Lower income taxes do not necessarily mean lower overall taxes, particularly since high sales and property taxes can more than offset the lack of an income tax. Rather, in deciding where to move, one should look at the total tax burden.
Fortunately, there are tools available to help retirees compare differences in state tax burdens. See the Retirement Living Information Center study or MSN's Money Central. If you do not have a computer, call AFSA for a paper copy of the reports.
Directory Corrections
California
Sally Ann Camp, 4831 8th Street, #3, Carpinteria, CA 93013
Florida
Idris M. Rossell, 2720 Riverbluff Way V 73, Sarasota FL 34231-5045,
(H) 941-924-7120, idris-wv@earthlink.net
Montana
Wanda Kennicott, kennicottw@cablemt.net
New
Mexico
Robert W. Proctor, bobbolaluz@charter.net
Texas
James
F. Creagan, 178 Grassmarket, San Antonio, TX 78259, and Charles E. Hagemann,
chagemann@satx.rr.com
Washington: Robert L. Fretz, 8829 188 Street SW, Edmonds, WA, 98026, (H) 425-778-6815, bongocongobob@comcast.net
AFSA Retiree
Staff
Bonnie
Brown, Retiree Counseling and Legislative Coordinator, Monday through
Wednesday at (202) 944-5509 or 1 (800) 704-2372, ext.509, or at brown@afsa.org.
Norma Reyes, Retiree Recruitment and Communications Coordinator, Monday,
Wednesday and Thursday at (202) 944-5514 or 1 (800) 704-2372, ext. 514,
or at reyes@afsa.org.
