NARFE Chapter 1518, Kaimuki

Remaining 2025 Chapter Meetings/Events

Oct 21. Meeting, McCully Park, 10:30
Nov 18 Meeting, McCully Park, 10:30 (Potluck luncheon)
Dec 4, Christmas Party at Natsunoya Teahouse

Chapter 1518 - 50th Anniversary

Save the Date Thursday, July 16, 2026 Save the Date

Luncheon @ Waialae CC -- details to be announced

Chapter 1518 News Update August 2025

Supplement to July, August & September Newsletter

Stronger Efforts needed to Fight Fraud in FEHB Program: The risk of fraud against the FEHB program goes beyond the issue of ineligible persons being covered as family members. However, OPM's efforts to manage fraud in the FEHB program does not cover many of the other fraud risks, the Government Accountability Office reported.

Trump launches new Private Health Tracking System: Trump launched a new initiative encouraging Americans to upload their personal health data and medical records to programs and systems run by Big Tech. The Centers for Medicare and Medicaid Services says patients would need to opt in to share their medical records and data, which will be kept secure.

Time is running out for Congress to Fix Social Security: Lawmakers hesitate to touch Social Security, commonly referred to as the “third rail” of American politics, but time is running out for Congress to fix Social Security's shortfall. With the number of workers paying into Social Security decreasing and the number of retirees collecting benefits increasing, something has to give. Without slowing down the rate of program growth, increasing the income flowing into the program or both, in 2033 the program will be able to pay only 80 percent of currently promised benefits. Slowing the rate of program growth and increasing income coming into the program may not be enough. It's time to consider a switch from a pay-as-you-go only system to one partially supported by some direct government funding.

Child Savings Accounts could pave the way to Privatizing Social Security: Tax-deferred savings accounts for children could pave the way to Privatizing Social Security, Treasury Secretary Bessent said. In the Mega Bill, American babies born 2025- 2028 are eligible to receive $1,000 from the Treasury. Parents, family members and employers can contribute additional funds to the accounts, which must be invested in low-cost stock mutual funds or exchange-traded funds tracking a U.S. stock index.

Fraud against Federal Retirement Program: Some common methods of pension fraud uncovered are:

Failure to report the death of an annuitant—usually a family member who receives payments.

Fraudsters steal the identity of a deceased pension recipient and continue collecting benefits.

Fraudsters trick plan participants into rolling over funds into illegitimate plans or investments.

Lawsuit against Trump Administration over efforts to collect SNAP Recipients' Data: Hawaii and other states are filing a lawsuit challenging the Trump administration's demand that states turn over personal data of people enrolled in the SNAP program. The USDA demand comes as the Trump administration searches for information on immigrants. "SNAP recipients provided the information to apply for food assistance not to be put under surveillance or be a target for deportation."

Social Security is making it harder for Seniors to do routine tasks by Phone: In an anti-fraud effort, Social Security plans to require callers to get a PIN number before they can do routine tasks like changing their address. Before calling Social Security, you will need to go on line to get a one-time PIN. To get the required PIN, callers need to set up an online Social Security account. Creating one requires users to go through identity verification checks. Once you have your PIN, it will enable you to speak to a Social Security agent and make your request.

SSA removes Strict ID Requirements on its Phone Line, but internal policy says otherwise: The agency’s internal policies instruct employees to ask callers wanting to change their direct deposit information for the pin number. Those not able to clear security checks over the phone or complete the transaction on-line have to go to a field office to prove their identity in-person.

Trump quietly halts FEMA money for Preventing Disaster Damage: President Trump has quietly scaled back a program that has been the backbone of state efforts to protect homes, hospitals and other structures from floods, hurricanes and earthquakes. Trump stopped approving new allocations in April from a federal program that has been a funding source for protecting people and property from disasters.

President Trump's Union-Busting Executive Orders: Trump has signed executive orders canceling collective bargaining agreements for federal workers. The NTEU endorses the Protect America’s Workforce Act (H.R. 2550) that would overturn the executive order stripping collective bargaining rights from hundreds of thousands of federal workers. It is challenging the order in court because it violates the law giving federal employees the right to unionize.

Social Security signals potential Benefit Disruptions for those still getting Paper Checks: Social Security is warning beneficiaries that those receiving their benefits via paper checks could see their payments disrupted as the agency implements a Sept. 30 deadline to wean the federal government off of paper checks. People that want checks need to call the Treasury at 1-855-290-1545 to apply for a waiver.

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Six things that may cost Americans more after Trump's tariffs

Michael Race, Emma Haslett and Natalie Sherman, Business reporters, BBC News, July 31, 2025

President Trump announced he was introducing sweeping new tariffs, extra taxes that importing firms have to pay if they bring in goods from abroad. Since then some of the US's major trading partners including the UK, Japan and now the European Union have negotiated down the headline tariff rates. The EU's agreement cuts in half the 30% tariff Trump had threatened. But other countries are still facing higher rates, including Canada, which sees tariffs rise to 35% as the August 1st deadline passed.

So far the U.S. Treasury has collected a record-setting $100 billion in customs duties, and is on track to pull in $300 billion this year. These tariffs are paid by U.S. importers— Walmart and other retailers—when goods cross the border or are imported into the U.S. So far businesses have been eating Trump’s tariffs but that's starting to change. Trump says the extra tariffs will generate billions in revenue and encourage firms to manufacture in the US to avoid the taxes. But there are already signs that the prices may be creeping upward due to the tariffs. Goldman Sachs economist, Elsie Peng wrote that Goldman’s economic models indicate consumers will take on about two-thirds of all the costs. If that’s the case, it will push the personal consumption expenditures price index (PCI), the Federal Reserve’s main inflation forecasting gauge, to 3.2% by the end of the year, excluding food and energy. The core PCE inflation for June was at 2.8%, while the Fed targets inflation at 2%. In July, the Producer's Price Index (PPI) which measures the average change in prices paid to producers (wholesalers), jumped 0.9% from June, lifting the annual rate to 3.3%. The PPI offers an early look at the prices consumers can expect to see in the months ahead.

So what products are likely to become more expensive?

Clothing and footwear

Clothing and footwear sold in the US is made in other countries, including the manufacturing hubs of Vietnam, China and Bangladesh. Though Trump has backed down from the steepest tariffs he initially threatened, the taxes on imports from those countries are still sharply elevated. Under current plans, the US is charging at least 30% on goods made in China, with plans to start collecting taxes of 19-20% on items from countries such as Vietnam, Bangladesh and Indonesia on August 1st. The measures are putting pressure on major US department stores like Target and Walmart, where Americans often turn for affordable clothing, as well as big-name apparel brands, such as Levi Strauss and Nike, which have said they will raise prices for certain items. After months of declines, apparel prices jumped 0.4% from May to June. Overall, the Budget Lab at Yale, which monitors the impact of government policy on the economy, expects clothing prices overall to surge a shocking 37% in the short run.

Coffee, olive oil and other groceries

Almost all of the coffee consumed in the US comes from other countries, meaning it could soon become a bigger burden on Americans' wallets. Coffee from Brazil is facing 50% tariffs. With 15% tariffs in place on products from European Union nations, the prices of shelf staples such as Italian, Spanish or Greek olive oil could rise. Trump has separately raised tariffs against Mexico, a major supplier of items such as tomatoes and avocados, though he has granted some key exemptions. About 70% of the steel used in the US to make cans for food is imported. When it comes to aluminum, brewers and makers of fizzy drinks have also warned the move will add costs and could lead to higher prices for customers. Robert Budway, president of the CMI, said without tariff exemptions for can manufacturers to import steel tariff free, grocery prices for canned foods made in the US are likely to rise. While the president may believe that these tariffs are protecting the steel industry, they certainly are undermining our food security and our supply resiliency for American canned food, which Americans rely on every day. The Budget Lab at Yale estimates that food prices will rise 3.4% in the short-run, with fresh produce seeing a particularly sharp jump initially.

Beer, wine and spirits

The US is one of Europe's biggest alcohol export market -- wine, about a third of Irish whiskey exports and almost 18% of champagne exports. European Commission President Ursula von der Leyen has not said whether alcohol will be included in its tariff deal with the US or exempted along with other, unspecified, agricultural and food products. Meanwhile, under tariffs announced in April, Mexican beers like Modelo and Corona are expected to become more expensive. Tariffs on aluminum and steel may affect the price of beer and other fizzy beverages poured from cans.

Cars

Trump has been particularly keen to see tariffs on imported vehicles in the hope that raising the price of foreign-made cars will give a boost to American firms. In March, he introduced a 25% levy on imported passenger vehicles and parts in an effort to protect America's automobile industry. He has since reduced this to 15% for cars from some key exporters, including the European Union and Japan. Importers will pay 10% on UK cars. The tariffs have not led to a sharp rise in car prices so far. Erin Keating, an executive analyst Cox Automotive, suggests that is because firms are so far "absorbing more of the burden [from tariffs] and not passing the added costs to consumers.

Trump's hopes that the tariffs will boost sales by US companies may also backfire. At a business conference, Ford chief executive Jim Farley warned Trump's recent moves were causing "a lot of cost and a lot of chaos" for his industry. That's because many cars made in the US rely on parts or materials from overseas. Some brands sold by US companies are also assembled outside the country, including in factories in Canada and Mexico, meaning they are subject to the 25% levy. Those are now at a disadvantage compared to offerings from key foreign competitors. Graphic showing how car industry supply chains can cross borders numerous times. It shows how powered aluminum is sent from Tennessee in the US to Pennsylvania to be turned into rods, which are taken across the border to Canada to be shaped and polished, then sent to Mexico to be assembled into pistons. Finally the pistons are imported into the US where they become part of engines assembled in Michigan.

Homes

The construction industry as a sector is one of the single biggest users of steel, which developers and homebuilders need for everything from building frames to appliances. After Trump raised tariffs on steel and aluminum earlier this year, prices for steelin the US increased. A 50% levy on copper is now set to start on August 1st, while Trump has also threatened tariffs on lumber. All three are key materials used to build homes. The National Association of Home Builders (NAHB) in the US has warned that the measures could increase the cost of building homes - which are mostly made out of wood in the US - and also put off developers building new homes. Consumers end up paying for the tariffs in the form of higher home prices, the NAHB said. Just how much may depend on whether Trump resolves his trade dispute with Canada, one of the biggest suppliers of lumber, currently facing potential tariffs of 35%. The US buys about 69% of its lumber, 25% of its imported iron and steel, and 18% of its copper imports from Canada.

Energy and fuel

The European deal will increase the amount of energy Europe buys from the US, which von der Leyen said will replace Russian gas and oil with cheaper liquefied natural gas (LNG), oil and nuclear fuels from America. But the tariffs don't necessarily mean good news for US consumers. Generally speaking, Trump has made oil and gas imports exempt from tariffs. But he has put a 10% rate on energy exports from Canada, America's largest foreign supplier of crude oil. According to official trade figures, 61% of oil imported into the US between January and November 2024 came from Canada. The US doesn't have a shortage of oil, but its refineries are designed to process so-called "heavier" - or thicker - crude oil, which mostly comes from Canada, with some from Mexico. Many refineries need heavier crude oil to maximize flexibility of gasoline, diesel and jet fuel production, according to the American Fuel and Petrochemical Manufacturers. That means if Canada decided to reduce crude oil exports in retaliation against US tariffs, it could push up fuel prices.

Correction ... Chapter 1518 newsletter July, August and September 2025

Good News...!

“The provision placing a 10% fee on deduction from Federal paychecks was deleted before the Senate passed the mega bill. This appears on pg 2 , at the end of paragraph 3.”

07July2025NL.pdf

"Beautiful" Budget Notes

NARFE 1518 NEWS UPDATE July 2025

Trump Signs the Big Beautiful Bill into Law on July Fourth

The bill raises the U.S. debt limit to $5 Trillion. Among the many provisions in the mega bill, it extends the expiring Trump tax cuts and adds new provisions--e.g. an additional temporary $6,000 deduction for older Americans 65+, removes provisions relating to federal retirement, and adds a no tax on tips and overtime pay provision -- at a cost of $4 Trillion dollars over a 10 year period. It makes major cuts to Medicaid and SNAP of over 1 Trillion dollars to help reduce the deficit the bill will generate. Most of the provisions affecting Federal Employees did not pass the Byrd Rule. Only provisions that required OPM to conduct an audit of enrollees in the FEHB Program to ensure family members remain eligible as dependents and a 10% government fee on deductions from federal paychecks remained.

Shrinking IRS workforce faces major task to implement ‘Big, Beautiful Bill’ passed by Congress

The Internal Revenue Service has lost more than a quarter of its employees and faces further staffing cuts. The IRS will scramble to prepare its workforce and its IT systems for major tax code changes in the Mega Bill.

Musk’s DOGE Cuts Cripple Government Agencies—for a Fraction of Promised Savings: Elon Musk (DOGE), promised to save the federal government a staggering $2 trillion. Barely into the first year, those projections have been slashed down to $150 billion—a 92.5% drop from the original estimate. The damage to the federal workforce, however, is severe.

DOGE can access sensitive Social Security records, Supreme Court rules

The Department of Government Efficiency (DOGE) can have unimpeded access to sensitive Social Security records for millions of people, the Supreme Court ruled Friday. The justices granted the Trump administration’s emergency request to lift a lower-court order that had blocked a DOGE team assigned to the Social Security Administration from viewing or obtaining personal information in the agency’s systems.

Merit Hiring Plan looks for Trump Loyalty: The new ‘Merit Hiring Plan’ asks job applicants questions like “How would you help advance the president’s executive orders and policy priorities in this role?”

Audit of PSHB Program reveals Understaffing by OPM

OPM can't fill all the positions needed nor can it ensure the system “will remain fully staffed, supported and funded" an audit by the inspector general reveals.

Federal Workers Legal Defense Network: A coalition of good government organizations and federal unions has launched an initiative called “Rise Up,” a network of thousands of lawyers who will offer free legal support to employees impacted by the Trump administration’s recent actions to overhaul the federal workforce. For more information on Rise Up: Federal Workers Legal Defense Network, visit workerslegaldefense.org.

DOGE layoffs may have compromised the Accuracy of Government Data: The Consumer Price Index (CPI) has become a little less precise recently affecting the data used to calculate the COLA.

Government to stop issuing Paper Checks

Trump's executive order directs all federal departments and agencies to stop issuing paper checks and switch to electronic payments by Sept. 30. Payments will be made by electronic transfer methods---direct deposit, debit or credit card payments. Social Security recipients who still want to receive paper checks need to get a waiver - before September 30.

Seniors 65 and older get an added $6,000 tax deduction

Does the Mega bill eliminate taxes on Social Security benefits? No, it does not. That item could not be put into the bill because it did not comply with the Byrd Rule. In lieu of eliminating the tax on Social Security, a temporary tax deduction of $6,000 for seniors was added to the bill to satisfy Trump's promise. The deduction is available in full only to taxpayers with incomes below a certain level, and it phases out above that threshold.

Who is eligible? You must be at least 65 years old by the end of the tax year and have a modified adjusted gross income (MAGI) of less than $175,000. If you’re married and filing a joint tax return, your spouse can also claim the deduction if they’re 65 or older and your combined MAGI is less than $250,000.

How much is the deduction? The maximum deduction is $6,000 per eligible taxpayer. For married couples filing jointly, the maximum deduction is $12,000 if both people are age 65 or older. However, the deduction is gradually reduced — potentially to $0 — if your MAGI exceeds $75,000, or $150,000 for joint filers. Your deduction is reduced by six cents for every dollar over the threshold. Once your MAGI reaches $175,000 for singles or $250,000 for joint filers, the deduction is $0.

How to calculate your deduction. If you are single and have a MAGI of $100,000, your MAGI is $25,000 over the threshold of $75,000. Your deduction is reduced by 6 percent of $25,000, or $1,500. Subtract $1,500 from $6,000 and your tax deduction is $4,500.

Does it replace the existing extra standard deduction for people 65 and older? No, it is in addition to the extra standard deduction for people age 65 and older. For Seniors 65 and above, your deductions are: 1) the regular standard deduction — $15,750 for single filers or $31,500 for married couples filing jointly; 2) the existing standard deduction for seniors; and 3) a new $6,000 deduction which expires at the end of 2028.

Can I claim the $6,000 deduction if I itemize? Yes, if you're itemizing, you can also claim the new deduction. When you itemize, you stack the new deduction on top of your itemized deductions. If you’re single, 65 years old, eligible for the full $6,000 deduction, have $40,000 of itemized deductions and have no other deductions, you can lower your taxable income by a total of $46,000.

Social Security Fairness Act Update

There is some confusion about the SSFA and retroactivity of payments back to January 2024. If you first filed for benefits after the act was passed, Social Security will only go back 6 months from the date of your application and you will receive retroactive pay for 6 months according to the original Social Security Act.

However, there is a small group of individuals who had contacted the Social Security Administration (SSA) before the bill passed and were advised that their benefits would be zero due to the GPO. They were then told not to file an application and so they did not. Now these individuals are basing their claim to full retroactive pay on the fact that they did contacted SSA before the Social Security Act passed but not to apply for benefits on the advice of the SSA.

To assist these individuals, a letter was sent by NARFE and another by three U.S. senators, Bill Cassidy (R-LA), Susan Collins (R-ME), John Coryn (R-TX), and John Fetterman (D-PA), requesting that the SSA change this policy for individuals who applied before the bill was passed and were advised not to apply by the SSA. They argue that these spouses should be entitled to full retroactive pay as far back as January 2024, since they initially tried to apply for spousal benefits before the date of passage. So far, there has not been any official comment from the SSA on this matter.

Razor blade throat' COVID-19 variant

CBS News -- A new COVID-19 variant that was unheard of just months ago is now projected to be the second-most common strain in the U.S. Variant NB.1.8.1 was first detected in China in January but accounted for about 0% of cases in the U.S. until May. By early June, it was estimated to account for up to 37% of cases, according to the Centers for Disease Control (CDC). The new COVID-19 variant carries with it a series of symptoms, including leaving those sick with a feeling of razor blades in their throat.

The World Health Organization states that currently approved COVID-19 vaccines are expected to remain effective against the NB.1.8.1 variant.

Health and Human Services Secretary Robert F. Kennedy Jr. said on May 27 that the COVID-19 vaccine would no longer be included in the CDC's recommended immunization schedule for healthy children and pregnant women.. The only people who will be recommended for COVID-19 vaccines are those over 65 and people with existing health problems. This could mean that others who want to receive the vaccine may have to pay out of pocket.

Chapter 1518 Officers for 2025 with HISF president Joyce Matsuo

Chapter 1518

HISF Memorial

April 2023

Updates on the Social Security Fairness Act, H.R. 82

Act was signed into law today, Jan 5 2025.

Questions related to the milestones/dates related to the dkstribution and amount to be paid to those affected by the WEP and/or GPO penalities should be directed to Social Security Administration (SSA). Visit the SSA.org website for details.

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Published in FedHub, Dec 22, 2024

A Win for BiPartisanship in Congress

Since 1982, public workers receiving non-SSA government pensions who work other jobs covered by Social Security, do not receive their full SSA benefits upon retirement due to the Windfall Elimination Penalty. Spouses who draw non-SSA government pensions do not receive their full SSA spousal benefits due to the Government Pension Offset Penalty. Impacted are state and local workers including firemen, policemen and teachers and federal and Postal Service employees hired before 1984. For over 40 years, NARFE tirelessly helped lead the fight to repeal these penalties. Finally, the House and Senate passed the Social Security Fairness Act HR 82 and S597, respectively, which repeal both penalties. Now President Biden needs to sign them into law. Corrected SSA benefits are to be payable after December 31, 2023.

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Joyce K Matsuo

Honolulu HI

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Photos from Summer Excursion

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