Our focus is on the conference committee that is meeting to negotiate a compromise for the extension of the payroll tax holiday. Just before Christmas, a two month extension compromise was reached and that extension expires on February 29. The committee has not met yet and we anticipate the negotiations will really begin the week of January 30 (the first full week that both the House and Senate are back in session). During the December negotiations, the only piece of legislation that was voted on was the House passed full-year extension (H.R. 3630). While the Senate considered this a non-starter piece of legislation, we are concerned that it will be the starting point of any negotiations. Within H.R. 3630, there are cuts to federal workers totaling $65 billion over 10 years; that amount is nearly 2/3 of the cost of the legislation. It is not right to ask less then 2% of the middle class workers to pay for a tax holiday for other middle class workers, especially since approximately 1/3 of them are ineligible for the tax holiday because they do not pay into Social Security. H.R. 3630 included an additional year of the pay freeze (3 year total); 1.5% increase in employee contributions; ending the FERS Social Security supplement; and the creation of a whole new retirement system for new and not-yet vested employees that would change the multiplier used in annuity calculations and use the high 5-year average that would all result in a nearly 40% reduction in annuities.

While all of these proposals impact active workers, it is important that retirees respond to the proposals. First, it is still an attack on the federal community as a whole and with the number of expected retirements in the next few years, the last thing the federal government needs is to make it unattractive as an employer. Second, if Congress uses these proposals for a tax holiday extension, they will have to look elsewhere for deficit reduction. We anticipate deficit reduction to be back on the table throughout the year and if these proposals are used for non-deficit reduction then Congress will have to look elsewhere, including FEHBP and COLAs. Federal Employees and Retirees are willing to make shared sacrifices but these proposals are not shared sacrifices and are not for deficit reduction.

We are asking all of our members to take action regarding the conference committee.

The first thing that you can do is respond to the recent Action Alert by going to http://capwiz.com/narfe/issues/alert/?alertid=60428501&PROCESS=Take+Action. There is an e-mail prepared that you can send to your Members of Congress.

Next, we are drafting Letters to the Editor that you can send to your local newspaper on this issue. As soon as we have sample letters, I will send them to you.

Finally, we are hosting a call-in day on Wednesday, February 15. The Wednesday after Valentine’s Day is the closest we can get to the February 29 deadline while Congress is still in session and likely to be negotiating. The script for the call is below. The toll-free number is 1-866-220-0044. Because of busy signals on previous call-in days, I know that local chapters and state federations prefer to use the 202-number directly for their Members of Congress. That is fine and headquarters does not have a preference for which number you use. I just want to remind you that we can access how many people and from where use the 866-number. If the announced results are lower then anticipated, please keep in mind that people have bypassed the operator and called their Member of Congress directly.

SCRIPT FOR NATIONAL CALL CONGRESS DAY ON FEBRUARY 15

Last week’s Hotline promised full details including a preferred script. President Joseph Beaudoin asks that Hotline users save the date of Wednesday, February 15 and share this step by step plan with all NARFE members via chapter newsletters and other communication channels.

Step 1: Call the Capitol using NARFE’s toll free number, 1-866-220-0044. Ask the operator to connect you to your representative's and/or senators' office.

Step 2: Tell the staff person who answers the telephone next where you live so they know you are a constituent, then say:

 · "I am a retired/active federal employee and member of NARFE." [Tell the staff person a little about your work.]

 · "[Senator or Representative X] represents thousands of federal workers and retirees and their survivors. Any plan that pays for 1/3 of the payroll tax cut by taking money out of the pockets of fewer than 2% of America's middle class is unacceptable, unfair, and certainly isn't shared sacrifice."

 · "Federal workers, retirees, and survivors have already done their part, saving the federal government $50 billion over two years. Making $65 billion in further cuts to pay, earned health and retirement benefits, or making changes to cost-of-living adjustments, would unfairly single out those who protected our nation, including many now on a fixed income."

Upcoming Dates to note:

Tuesday, January 24 – President Obama will deliver the State of the Union Address

Wednesday, January 25 – the House Oversight and Government Reform Subcommittee will hold a hearing comparing federal retirement to that of the private sector and state/local pension systems. NARFE will be testifying on behalf of the Federal/Postal Coalition.

Wednesday, February 1 -- Senate Homeland Security and Government Oversight Subcommittee will hold a hearing on the backlog at OPM on processing annuities. NARFE will be testifying.

Monday, February 6 – President Obama is expected to release his budget for FY 2013.

Sarah Holstine
Legislative Specialist