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1199SEIU Family of Funds 330 West 42nd Street New York, NY 10036-6977

Non-Profit U.S. Postage PAID New York, NY Permit No. 3700

Spring 2009

During this economically

LETTER FROM THE EXECUTIVE DIRECTORS

difficult time, we at the Family of Funds are diligently pursuing new strategies to hold the line on administrative

Like all of our employers, we are anxiously awaiting the outcome of the state budget so that we can measure its effects on our hospitals, nursing homes and our National Benefit Fund, as well as the industry at large. In the meantime, during this economically difficult time, we at the Family of Funds are diligently pursuing new strategies to hold the line on administrative costs, to rein in the cost of health benefits and to provide your workforce with the benefits your contributions support. Inside this edition of Employer News, you will read about all of our efforts.

costs, to rein in the cost of health benefits and to provide your workforce with the benefits your contributions support.

IN THIS ISSUE . . . Lean Benefit and Pension Funds Budget Reins In Administrative Spending . . . . . 2 Governor’s New York State Budget Proposal Affects National Benefit Fund, Too . . . . 3 Building on Past Cost-Savings Successes With New Programs . . . . . . . . . . . . . 3 Training and Employment Funds Tackle Infection Prevention . . . . . . . . . . . . . 4 Labor-Management Partnerships Work to Strengthen Long-Term Care . . . . . . . . . . 5

You’ll read about the lean administrative budget that the Trustees have approved for the Benefit and Pension Funds and how our staff, mindful of the challenges facing our members and industry, has renewed their already strong commitment to ensuring that every available dollar goes toward your employees’ benefits. You will find out more about the Benefit Fund’s latest set of cost-savings initiatives, and read about the stock market’s effect on our Pension Funds. Of course, even in the midst of all the economic turmoil, there is a great deal of positive work being produced by the Funds. Our Training and Employment Funds are involved in dynamic labor-management projects that are making a real impact on the delivery of care in our hospitals and nursing homes and positively impacting the bottom line. The Child Care Fund is reaching out to more members than ever, raising awareness of the important programs and services that your contributions pay for. The Child Care Corporation, the non-profit subsidiary of the Child Care Fund, is working on strengthening our future workforce one student at a time. As always, we appreciate your comments and feedback, and look forward to working together to support your employees – our members – through these tough and trying times. Sincerely,

1199SEIU Student Nichole Forde Receives Nursing Scholarship at Child Care Corporation Gala . . . . . . . . . . . . . . . . . 6 Service Improvements Allow 1199SEIU/Employer Child Care Fund to Serve Even More Members . . . . . . . . . . 7

Mitra Behroozi Executive Director Benefit and Pension Funds

Deborah King Executive Director Training and Employment Funds

Vivian Fox Executive Director Child Care Funds


Lean Benefit and Pension Funds Budget Reins In Administrative Spending The Trustees of the 1199SEIU Benefit and Pension Funds have passed a lean 2009 administrative budget which reflects the dire economic times facing the healthcare industry and our country. This disciplined budget is the result of months of work across all of our departments, with multiple layers of review to identify every area where spending could be managed more tightly or cut back. The 2009 administrative budget holds the line on spending with only a 3.3% increase, the lowest annual budget increase since 2004. The increase is largely driven by a higher reallocation to the Benefit and Pension Funds for Strategic Support Division costs – the consolidated unit that accounts for all the back office administrative support services for the Benefit and Pension, Training and Employment and Child Care Funds. Exclusive of Strategic Support Division costs, the National Benefit Fund’s portion of the administrative budget actually represents a 0.2% decrease over 2008. With the budget finalized, the Benefit and Pension Funds assembled all of our staff in February to present the realities of the current economic picture and how it will affect our industry, members and benefits. Although we have always kept our administrative costs low, the meeting reinforced for each staff member that our administrative spending, now more than ever, has an even greater impact on the number of dollars available to underwrite the cost of benefits. And in 2009, we will work even harder to ensure that every possible dollar goes toward supporting our members. 2 EMPLOYER NEWS Spring 2009

Health Care Employees Pension Fund Annual Returns

Health Care Employees Pension Fund Hit By Economic Crisis Like so many other labor-management funds around the country, the recent stock market crash has taken a steep toll on the 1199SEIU Health Care Employees Pension Fund, which lost billions during the closing months of 2008. By December 31, the Pension Fund had experienced an estimated 32% decline, leaving us with $5.7 billion and putting us back to where we were in 2001. While our actuaries estimate that it could take up to 15 years to recover and rebuild to our pre-crash status, it is likely that collective bargainers will need to take steps in order to do that.

Service Improvements Allow 1199SEIU/Employer Child Care Fund to Serve Even More Members The 1199SEIU/Employer Child Care Fund supports the industry by supporting your employees with affordable child care, and children and youth programs from infancy through their teen years. It is the Fund’s goal to make your employees more aware of the valuable programs it offers them and their children. Over the past year, the Fund has made a number of improvements to get the word out to a larger number of parents and make it easier for them to register their children for programs.

parents with additional resources and information on a broad range of children and youth parenting issues. Staff distributed seminar enrollment information both at registration sites and through member communications, which resulted in increased seminar attendance. Given these service enhancements and new program offerings, the Child Care Fund has been able to successfully increase the scope of service offered to members, children and youth.

During the 2009 registration season, nearly 16,000 members registered for child care benefits. In the fall of 2008, the Fund expanded its registration efforts, sponsoring an additional Registration Kickoff. Members unable to attend the Kickoff traditionally held at Fund headquarters in Manhattan could participate in the Kickoff at the 1199SEIU office in Hicksville, Long Island. The Fund also opened more in-person registration sites for the duration of the registration period: one in Hicksville, one upstate in Rochester and additional sites in Rockland County and in Albany. To promote easy online program registration and increase electronic outreach, the Fund collected scores of valid member e-mail addresses and assigned a dedicated team to assist online registrants. The results were unprecedented: nearly one-third of the members registered online. To increase member awareness of youth programs newly incorporated under the Child Care Fund umbrella, flyers and other materials pertaining to sleep-away camp, scholarship and mentoring programs were disseminated at registration sites. In addition to its enhanced registration support services, the Fund also continued working to promote its parenting seminars, which provide 1199SEIU Spring 2009 EMPLOYER NEWS 7


1199SEIU Student Nichole Forde Receives Nursing Scholarship at Child Care Corporation Gala The 1199SEIU/Employer Child Care Corporation’s Third Annual “Care for Kids” Gala in December successfully raised funds for child care benefits for low-income families without access to affordable, collectively-bargained child care benefits. It also highlighted another important aspect of the Corporation’s work – supporting a new generation of healthcare workers. One of the evening’s highlights involved an aspiring nurse, 1199SEIU WorkForce 2000 Pre-RN student Nichole Forde. During the gala, Nichole was presented with a four-year nursing scholarship from Hunter College to pursue her career dreams. Through the Child Care Corporation’s Pre-RN program, Nichole and other students are gaining the academic and financial support to achieve their dream of becoming RNs. In this way, the Funds are growing a pool of qualified nurses for shortage positions within our institutions and strengthening the ability to deliver quality care. Nichole explained to Gala guests just how important the WorkForce 2000 Pre-RN program is to her. “This program helps me realize that I do not want to be anywhere else but in the nursing field, making a difference in people’s lives,” she told the crowd. Also honored during the night’s festivities was Jennifer J. Raab, president of Hunter College, who received the Champion for Education award. Brenda Blackmon, co-anchor of My9 WWOR-TV’s 10:00 pm newscast, received an award for Excellence in Journalism and Community Service. Stanley S. Litow, president of the IBM International Foundation, received the Corporate Leadership for Education and Youth Service award. 6 EMPLOYER NEWS Spring 2009

Governor’s New York State Budget Proposal Affects National Benefit Fund, Too As we all know, the governor’s budget proposal slashes more than $1.4 billion from our institutions, facilities and home care agencies, causing $3.5 billion in reduced spending for healthcare when coupled with other proposed taxes and fees. And the Benefit and Pension Funds face an additional blow, since the governor’s proposed new fees for insurers would apply to TaftHartley Benefit Funds such as ours. These new fees would cost the National Benefit Fund an unanticipated $33 million over the next two years – potentially cancelling out millions of the cost–savings dollars which were required by the collective bargaining agreements in order to keep a cap on employer contributions.

Impact of Governor’s Proposed Fees Proposed increases for National Benefit Fund

TOTAL

2008 2009 2010 2011 3 months 12 months 12 months 3 months

Covered lives assessment

12,911,813 662,277

6,678,597

4,667,837

903,102

HCRA surcharge increase

4,858,000

529,000

1,900,000

1,900,000

529,000

New HCRA surcharge – Surgery and Radiology

12,000,000 1,200,000

4,800,000

4,800,000

1,200,000

$1 per claim on prescriptions over $20

3,750,000

1,500,000

1,500,000

375,000

TOTAL IMPACT

33,519,813 2,766,277 14,878,597 12,867,837 3,007,102

375,000

Building on Past Cost-Savings Successes With New Programs Nichole explained to Gala guests just how important the WorkForce 2000 Pre-RN program is to her. “This program helps me realize that I do not want to be anywhere else but in the nursing field, making a difference in people’s lives,” she told the crowd.

One of the most proactive ways the National Benefit Fund is managing our assets is through our ongoing collectively bargained cost-savings programs. These programs fulfill our goal of providing quality healthcare to your employees while holding down the cost of benefits. Since they began in late 2004, we’ve continued to refine these programs to realize the maximum savings and ensure that each of the dollars you contribute is used as effectively as possible while getting members the care they need. Our cost-savings initiatives cover a variety of areas, including prescription savings through The 90-Day Rx Solution (our mail-order program for long-term medications), an expanded Preferred Drug List and prior authorization programs, preferred lab and radiology vendors, a Medicare Advantage Plan for New York City and Nassau retirees and our Health Coaching service and 24-Hour Nurse Helpline. By the end of 2008, these programs had saved the National Benefit Fund $289 million. The area that gives us the greatest opportunities for savings is our prescription program. In January, we

added more prescription drug classes to our Preferred Drug List, and began requiring step therapy – where a member tries a less-expensive, clinically equivalent drug first and “steps up” to a costlier brand – for some medications, and prior authorization for others. Now, in April we will add four more classes to the Preferred Drug List for savings totaling over $800,000. And we will add five new medications to the list of those requiring prior authorization, and several more to those managed under our quantity duration policy, ensuring that members are getting the most clinically effective dosages of the medications they need. Doing so ensures quality care for our members – as well as saving benefit dollars. We will also be introducing a Medicare Advantage Plan for Florida retirees this summer, similar to the 1199SEIU HIP VIP Plan in which New York City and Nassau retirees are now enrolled. Like our other costsavings programs, this plan will strengthen the quality of care members receive while using our resources in the most effective way. Spring 2009 EMPLOYER NEWS 3


Training and Employment Funds Tackle Infection Prevention

Labor-Management Partnerships Work to Strengthen Long-Term Care

For three years, the 1199SEIU Training and Employment Funds have been collaborating with 1199SEIU United Healthcare Workers East and the Greater New York Hospital Association to reduce hospital-acquired infections. Infection prevention has become a priority in our hospitals and nursing homes, as labor and management work to ensure a quality patient experience and employee health, and avoid loss of income. The culmination of this work was presented at the Quality and Service Conference in December, where more than 300 trained infection prevention hospital employees, 1199SEIU staff and representatives from 18 New York City hospitals gathered to share results and strategies.

About 500 nursing home residents, family members, community advocates, Union members and managers from nearly 40 League nursing homes met on December 10, 2008, at the Labor Management Project’s ninth Quality Care Committee (QCC) Conference to share strategies on strengthening the delivery of long-term care.

The conference reinforced the importance of labormanagement cooperation in tackling hospital-acquired infections. “What’s great about this program is that it brings staff from all departments and all levels together with management and gives everyone on the team a sense of importance,” said Barbara Smith, the Infection Prevention Site Coordinator at St. Luke’s Hospital. “Staff feels more comfortable approaching management now, and we all encourage each other to do well.” St. Luke’s project began in 2007, with staff from different nursing units, from nurses to transporters to housekeepers, undergoing training with the Training and Employment Funds’ Labor Management Project. At the end of training, the coaches went on to educate their coworkers on the importance of handwashing, cleaning equipment after use and getting flu shots. The team created learning tools such as posters, and even a video for patients explaining the importance of handwashing for them as well as their healthcare providers. As a result, hand hygiene at the institution improved from 76% in September 2008 to 86% in November 2008. “The coaching provided through the Labor Management Project stretches beyond the realm of hygiene,” added Ms. Smith. “It teaches staff members how to coach others, how to approach them, encourage them and help them work together to improve patient care.” 4 EMPLOYER NEWS Spring 2009

Union and management representatives from each of the hospitals plan to come together to share more of their program outcomes in March.

Nursing Homes Beth Abraham Nursing Home Bishop Mugavero Nursing Home Bronx Center for Rehabilitation Brooklyn United Methodist Buena Vida Continuing Care and Rehab Center Center for Nursing and Rehabilitation Clove Lakes Rehab Cobble Hill Cold Spring Hills Center Crown NH Daughters of Jacob Eger Healthcare Elant Homes Field Home Holy Comforter Four Seasons Genesis HCC Greater Harlem Hebrew Home-Riverdale Isabella Geriatric JHHA-Manhattan JHHA-Bronx JHHA-Sarah Newman Kateri Residence Lutheran Augustana Margaret Teitz Menorah Home Metropolitan Jewish Morningside House Msgr. Fitzpatrick Pavilion Parker Jewish Pelham Parkway NH Providence Rest Rebekah River Manor Rivington House Schnurmacher Sephardic Shorefront Jewish Geriatric Terence Cardinal Cooke Terrace Healthcare The Wartburg United Hebrew Geriatric United Old Fellow Village NH

The conference theme, “Building Bridges to the Future of Long-Term Care,” highlighted the Labor Management Project’s PersonCentered Care pilot program, in which joint labor-management teams from 17 nursing homes incorporated person-centered care strategies into their daily care of residents. Surveys from residents and family members indicated they were more satisfied with the quality of care being delivered. And project data revealed that employees involved in the joint project were more satisfied in their work than those who were not. One of the conference participants that shared their experience was Parker Jewish Institute for Health Care and Rehabilitation in New Hyde Park. Parker’s project included creating a “Resident Care Specialist” upgrading program to support and engage their CNAs in improving resident care. With the support of the Labor Management Project, Parker’s joint labor-management committee designated 14 CNAs to participate in this certificate program. During eight weeks of training, they learned how to improve their resident relations through communication skills, clinical skills, cultural sensitivity and working more closely with residents’ families. The training also increased the CNAs’ sensitivity and knowledge of the

clinical issues that an older resident may have, for instance, the underlying medical reasons why a resident may fall or forget things. Graduates of the training program are recognized by Parker as “Resident Care Specialists” and will act as frontline leaders for their units, handling tasks such as scheduling, fielding questions from family members and taking part in the weekly review of resident care plans. “This certification program offered our CNAs a sense of self-worth and improved communication and relations with management. We had a graduation ceremony, and all of the graduates were extremely proud of their achievement,” said Sylvia Williams, RN, MA, and VicePresident for Patient Care Services at Parker. “The Labor Management Project is so helpful for our facility, and the Share Conferences are a great inspiration to both staff and management.” Michael Rosenblut, President and CEO of Parker, added, “From Parker’s viewpoint, this program was so important that it has now been included in our Executive Plan and has reached the Board of Trustee level – a very rare feat. The results from both residents and our CNAs have been positive, and we hope to continue the training.” Spring 2009 EMPLOYER NEWS 5


Training and Employment Funds Tackle Infection Prevention

Labor-Management Partnerships Work to Strengthen Long-Term Care

For three years, the 1199SEIU Training and Employment Funds have been collaborating with 1199SEIU United Healthcare Workers East and the Greater New York Hospital Association to reduce hospital-acquired infections. Infection prevention has become a priority in our hospitals and nursing homes, as labor and management work to ensure a quality patient experience and employee health, and avoid loss of income. The culmination of this work was presented at the Quality and Service Conference in December, where more than 300 trained infection prevention hospital employees, 1199SEIU staff and representatives from 18 New York City hospitals gathered to share results and strategies.

About 500 nursing home residents, family members, community advocates, Union members and managers from nearly 40 League nursing homes met on December 10, 2008, at the Labor Management Project’s ninth Quality Care Committee (QCC) Conference to share strategies on strengthening the delivery of long-term care.

The conference reinforced the importance of labormanagement cooperation in tackling hospital-acquired infections. “What’s great about this program is that it brings staff from all departments and all levels together with management and gives everyone on the team a sense of importance,” said Barbara Smith, the Infection Prevention Site Coordinator at St. Luke’s Hospital. “Staff feels more comfortable approaching management now, and we all encourage each other to do well.” St. Luke’s project began in 2007, with staff from different nursing units, from nurses to transporters to housekeepers, undergoing training with the Training and Employment Funds’ Labor Management Project. At the end of training, the coaches went on to educate their coworkers on the importance of handwashing, cleaning equipment after use and getting flu shots. The team created learning tools such as posters, and even a video for patients explaining the importance of handwashing for them as well as their healthcare providers. As a result, hand hygiene at the institution improved from 76% in September 2008 to 86% in November 2008. “The coaching provided through the Labor Management Project stretches beyond the realm of hygiene,” added Ms. Smith. “It teaches staff members how to coach others, how to approach them, encourage them and help them work together to improve patient care.” 4 EMPLOYER NEWS Spring 2009

Union and management representatives from each of the hospitals plan to come together to share more of their program outcomes in March.

Nursing Homes Beth Abraham Nursing Home Bishop Mugavero Nursing Home Bronx Center for Rehabilitation Brooklyn United Methodist Buena Vida Continuing Care and Rehab Center Center for Nursing and Rehabilitation Clove Lakes Rehab Cobble Hill Cold Spring Hills Center Crown NH Daughters of Jacob Eger Healthcare Elant Homes Field Home Holy Comforter Four Seasons Genesis HCC Greater Harlem Hebrew Home-Riverdale Isabella Geriatric JHHA-Manhattan JHHA-Bronx JHHA-Sarah Newman Kateri Residence Lutheran Augustana Margaret Teitz Menorah Home Metropolitan Jewish Morningside House Msgr. Fitzpatrick Pavilion Parker Jewish Pelham Parkway NH Providence Rest Rebekah River Manor Rivington House Schnurmacher Sephardic Shorefront Jewish Geriatric Terence Cardinal Cooke Terrace Healthcare The Wartburg United Hebrew Geriatric United Old Fellow Village NH

The conference theme, “Building Bridges to the Future of Long-Term Care,” highlighted the Labor Management Project’s PersonCentered Care pilot program, in which joint labor-management teams from 17 nursing homes incorporated person-centered care strategies into their daily care of residents. Surveys from residents and family members indicated they were more satisfied with the quality of care being delivered. And project data revealed that employees involved in the joint project were more satisfied in their work than those who were not. One of the conference participants that shared their experience was Parker Jewish Institute for Health Care and Rehabilitation in New Hyde Park. Parker’s project included creating a “Resident Care Specialist” upgrading program to support and engage their CNAs in improving resident care. With the support of the Labor Management Project, Parker’s joint labor-management committee designated 14 CNAs to participate in this certificate program. During eight weeks of training, they learned how to improve their resident relations through communication skills, clinical skills, cultural sensitivity and working more closely with residents’ families. The training also increased the CNAs’ sensitivity and knowledge of the

clinical issues that an older resident may have, for instance, the underlying medical reasons why a resident may fall or forget things. Graduates of the training program are recognized by Parker as “Resident Care Specialists” and will act as frontline leaders for their units, handling tasks such as scheduling, fielding questions from family members and taking part in the weekly review of resident care plans. “This certification program offered our CNAs a sense of self-worth and improved communication and relations with management. We had a graduation ceremony, and all of the graduates were extremely proud of their achievement,” said Sylvia Williams, RN, MA, and VicePresident for Patient Care Services at Parker. “The Labor Management Project is so helpful for our facility, and the Share Conferences are a great inspiration to both staff and management.” Michael Rosenblut, President and CEO of Parker, added, “From Parker’s viewpoint, this program was so important that it has now been included in our Executive Plan and has reached the Board of Trustee level – a very rare feat. The results from both residents and our CNAs have been positive, and we hope to continue the training.” Spring 2009 EMPLOYER NEWS 5


1199SEIU Student Nichole Forde Receives Nursing Scholarship at Child Care Corporation Gala The 1199SEIU/Employer Child Care Corporation’s Third Annual “Care for Kids” Gala in December successfully raised funds for child care benefits for low-income families without access to affordable, collectively-bargained child care benefits. It also highlighted another important aspect of the Corporation’s work – supporting a new generation of healthcare workers. One of the evening’s highlights involved an aspiring nurse, 1199SEIU WorkForce 2000 Pre-RN student Nichole Forde. During the gala, Nichole was presented with a four-year nursing scholarship from Hunter College to pursue her career dreams. Through the Child Care Corporation’s Pre-RN program, Nichole and other students are gaining the academic and financial support to achieve their dream of becoming RNs. In this way, the Funds are growing a pool of qualified nurses for shortage positions within our institutions and strengthening the ability to deliver quality care. Nichole explained to Gala guests just how important the WorkForce 2000 Pre-RN program is to her. “This program helps me realize that I do not want to be anywhere else but in the nursing field, making a difference in people’s lives,” she told the crowd. Also honored during the night’s festivities was Jennifer J. Raab, president of Hunter College, who received the Champion for Education award. Brenda Blackmon, co-anchor of My9 WWOR-TV’s 10:00 pm newscast, received an award for Excellence in Journalism and Community Service. Stanley S. Litow, president of the IBM International Foundation, received the Corporate Leadership for Education and Youth Service award. 6 EMPLOYER NEWS Spring 2009

Governor’s New York State Budget Proposal Affects National Benefit Fund, Too As we all know, the governor’s budget proposal slashes more than $1.4 billion from our institutions, facilities and home care agencies, causing $3.5 billion in reduced spending for healthcare when coupled with other proposed taxes and fees. And the Benefit and Pension Funds face an additional blow, since the governor’s proposed new fees for insurers would apply to TaftHartley Benefit Funds such as ours. These new fees would cost the National Benefit Fund an unanticipated $33 million over the next two years – potentially cancelling out millions of the cost–savings dollars which were required by the collective bargaining agreements in order to keep a cap on employer contributions.

Impact of Governor’s Proposed Fees Proposed increases for National Benefit Fund

TOTAL

2008 2009 2010 2011 3 months 12 months 12 months 3 months

Covered lives assessment

12,911,813 662,277

6,678,597

4,667,837

903,102

HCRA surcharge increase

4,858,000

529,000

1,900,000

1,900,000

529,000

New HCRA surcharge – Surgery and Radiology

12,000,000 1,200,000

4,800,000

4,800,000

1,200,000

$1 per claim on prescriptions over $20

3,750,000

1,500,000

1,500,000

375,000

TOTAL IMPACT

33,519,813 2,766,277 14,878,597 12,867,837 3,007,102

375,000

Building on Past Cost-Savings Successes With New Programs Nichole explained to Gala guests just how important the WorkForce 2000 Pre-RN program is to her. “This program helps me realize that I do not want to be anywhere else but in the nursing field, making a difference in people’s lives,” she told the crowd.

One of the most proactive ways the National Benefit Fund is managing our assets is through our ongoing collectively bargained cost-savings programs. These programs fulfill our goal of providing quality healthcare to your employees while holding down the cost of benefits. Since they began in late 2004, we’ve continued to refine these programs to realize the maximum savings and ensure that each of the dollars you contribute is used as effectively as possible while getting members the care they need. Our cost-savings initiatives cover a variety of areas, including prescription savings through The 90-Day Rx Solution (our mail-order program for long-term medications), an expanded Preferred Drug List and prior authorization programs, preferred lab and radiology vendors, a Medicare Advantage Plan for New York City and Nassau retirees and our Health Coaching service and 24-Hour Nurse Helpline. By the end of 2008, these programs had saved the National Benefit Fund $289 million. The area that gives us the greatest opportunities for savings is our prescription program. In January, we

added more prescription drug classes to our Preferred Drug List, and began requiring step therapy – where a member tries a less-expensive, clinically equivalent drug first and “steps up” to a costlier brand – for some medications, and prior authorization for others. Now, in April we will add four more classes to the Preferred Drug List for savings totaling over $800,000. And we will add five new medications to the list of those requiring prior authorization, and several more to those managed under our quantity duration policy, ensuring that members are getting the most clinically effective dosages of the medications they need. Doing so ensures quality care for our members – as well as saving benefit dollars. We will also be introducing a Medicare Advantage Plan for Florida retirees this summer, similar to the 1199SEIU HIP VIP Plan in which New York City and Nassau retirees are now enrolled. Like our other costsavings programs, this plan will strengthen the quality of care members receive while using our resources in the most effective way. Spring 2009 EMPLOYER NEWS 3


Lean Benefit and Pension Funds Budget Reins In Administrative Spending The Trustees of the 1199SEIU Benefit and Pension Funds have passed a lean 2009 administrative budget which reflects the dire economic times facing the healthcare industry and our country. This disciplined budget is the result of months of work across all of our departments, with multiple layers of review to identify every area where spending could be managed more tightly or cut back. The 2009 administrative budget holds the line on spending with only a 3.3% increase, the lowest annual budget increase since 2004. The increase is largely driven by a higher reallocation to the Benefit and Pension Funds for Strategic Support Division costs – the consolidated unit that accounts for all the back office administrative support services for the Benefit and Pension, Training and Employment and Child Care Funds. Exclusive of Strategic Support Division costs, the National Benefit Fund’s portion of the administrative budget actually represents a 0.2% decrease over 2008. With the budget finalized, the Benefit and Pension Funds assembled all of our staff in February to present the realities of the current economic picture and how it will affect our industry, members and benefits. Although we have always kept our administrative costs low, the meeting reinforced for each staff member that our administrative spending, now more than ever, has an even greater impact on the number of dollars available to underwrite the cost of benefits. And in 2009, we will work even harder to ensure that every possible dollar goes toward supporting our members. 2 EMPLOYER NEWS Spring 2009

Health Care Employees Pension Fund Annual Returns

Health Care Employees Pension Fund Hit By Economic Crisis Like so many other labor-management funds around the country, the recent stock market crash has taken a steep toll on the 1199SEIU Health Care Employees Pension Fund, which lost billions during the closing months of 2008. By December 31, the Pension Fund had experienced an estimated 32% decline, leaving us with $5.7 billion and putting us back to where we were in 2001. While our actuaries estimate that it could take up to 15 years to recover and rebuild to our pre-crash status, it is likely that collective bargainers will need to take steps in order to do that.

Service Improvements Allow 1199SEIU/Employer Child Care Fund to Serve Even More Members The 1199SEIU/Employer Child Care Fund supports the industry by supporting your employees with affordable child care, and children and youth programs from infancy through their teen years. It is the Fund’s goal to make your employees more aware of the valuable programs it offers them and their children. Over the past year, the Fund has made a number of improvements to get the word out to a larger number of parents and make it easier for them to register their children for programs.

parents with additional resources and information on a broad range of children and youth parenting issues. Staff distributed seminar enrollment information both at registration sites and through member communications, which resulted in increased seminar attendance. Given these service enhancements and new program offerings, the Child Care Fund has been able to successfully increase the scope of service offered to members, children and youth.

During the 2009 registration season, nearly 16,000 members registered for child care benefits. In the fall of 2008, the Fund expanded its registration efforts, sponsoring an additional Registration Kickoff. Members unable to attend the Kickoff traditionally held at Fund headquarters in Manhattan could participate in the Kickoff at the 1199SEIU office in Hicksville, Long Island. The Fund also opened more in-person registration sites for the duration of the registration period: one in Hicksville, one upstate in Rochester and additional sites in Rockland County and in Albany. To promote easy online program registration and increase electronic outreach, the Fund collected scores of valid member e-mail addresses and assigned a dedicated team to assist online registrants. The results were unprecedented: nearly one-third of the members registered online. To increase member awareness of youth programs newly incorporated under the Child Care Fund umbrella, flyers and other materials pertaining to sleep-away camp, scholarship and mentoring programs were disseminated at registration sites. In addition to its enhanced registration support services, the Fund also continued working to promote its parenting seminars, which provide 1199SEIU Spring 2009 EMPLOYER NEWS 7


1199SEIU Family of Funds 330 West 42nd Street New York, NY 10036-6977

Non-Profit U.S. Postage PAID New York, NY Permit No. 3700

Spring 2009

During this economically

LETTER FROM THE EXECUTIVE DIRECTORS

difficult time, we at the Family of Funds are diligently pursuing new strategies to hold the line on administrative

Like all of our employers, we are anxiously awaiting the outcome of the state budget so that we can measure its effects on our hospitals, nursing homes and our National Benefit Fund, as well as the industry at large. In the meantime, during this economically difficult time, we at the Family of Funds are diligently pursuing new strategies to hold the line on administrative costs, to rein in the cost of health benefits and to provide your workforce with the benefits your contributions support. Inside this edition of Employer News, you will read about all of our efforts.

costs, to rein in the cost of health benefits and to provide your workforce with the benefits your contributions support.

IN THIS ISSUE . . . Lean Benefit and Pension Funds Budget Reins In Administrative Spending . . . . . 2 Governor’s New York State Budget Proposal Affects National Benefit Fund, Too . . . . 3 Building on Past Cost-Savings Successes With New Programs . . . . . . . . . . . . . 3 Training and Employment Funds Tackle Infection Prevention . . . . . . . . . . . . . 4 Labor-Management Partnerships Work to Strengthen Long-Term Care . . . . . . . . . . 5

You’ll read about the lean administrative budget that the Trustees have approved for the Benefit and Pension Funds and how our staff, mindful of the challenges facing our members and industry, has renewed their already strong commitment to ensuring that every available dollar goes toward your employees’ benefits. You will find out more about the Benefit Fund’s latest set of cost-savings initiatives, and read about the stock market’s effect on our Pension Funds. Of course, even in the midst of all the economic turmoil, there is a great deal of positive work being produced by the Funds. Our Training and Employment Funds are involved in dynamic labor-management projects that are making a real impact on the delivery of care in our hospitals and nursing homes and positively impacting the bottom line. The Child Care Fund is reaching out to more members than ever, raising awareness of the important programs and services that your contributions pay for. The Child Care Corporation, the non-profit subsidiary of the Child Care Fund, is working on strengthening our future workforce one student at a time. As always, we appreciate your comments and feedback, and look forward to working together to support your employees – our members – through these tough and trying times. Sincerely,

1199SEIU Student Nichole Forde Receives Nursing Scholarship at Child Care Corporation Gala . . . . . . . . . . . . . . . . . 6 Service Improvements Allow 1199SEIU/Employer Child Care Fund to Serve Even More Members . . . . . . . . . . 7

Mitra Behroozi Executive Director Benefit and Pension Funds

Deborah King Executive Director Training and Employment Funds

Vivian Fox Executive Director Child Care Funds


Employer News - Spring 2009