What is NARFE? If you are a current federal employee, you may think it is an organization that you don't need to belong to--that your agency labor or management association is looking after your benefits. But as you near retirement age, you will see just how critical NARFE is in preventing the erosion of federal retirement benefits, and to amend provisions that treat federal employees unfairly. NARFE is the ONLY organization that speaks for ALL Federal Employees!
For instance, did you know that as a federal retiree, you will not enjoy the same tax advantages as an active federal employee? For instance, as an active employee, the cost of your health insurance premiums are deducted from your wages and compensation, making those premiums tax-free. However, when you retire, the money you spend for health insurance is taxable--and you will have to pay Federal and possibly State income tax on the money you are spending for health insurance premiums. So if your health insurance premiums are $3500 per year while you are working, that amount is included in your tax-free benefits; after you retire, that $3500 will be taxable income. If you are in the 15% federal tax bracket, you will pay $525 federal income tax on your $3500 premium, which effectively raises your health insurance cost from $3500 to $4025.
Two other financial nightmares, that many CSRS employees are unaware of until too late, are the Government Pension Offset and the Windfall Elimination Provision. These will reduce or in some cases, completely eliminate Social Security benefits for which you are eligible, because you are a federal annuitant.
For more information on these subjects, as well as pending legislation that will affect these and other items of interest, check out the NARFE Headquarters website, listed in the Links page.
The NARFE website discusses the benefits that NARFE has fought for and won for federal retirees, such as the right to purchase Federal Long Term Health Care, and a $250 tax credit for 2009 ( retirees, including Social Security recipients, were approved to receive a $250 stimulus payment--but not Federal retirees! Due to NARFE's petitions to Congress, the $250 tax credit for federal retirees was approved).
Every active and retired federal employee should join NARFE and support the preservation of our retirement benefits! All currently working federal employees, retired CSRS and FERS employees, as well as those receiving survivor's annuities or having 5 years or more of Federal service, are eligible to join NARFE and help protect our hard-earned retirement benefits.