ANNUAL FUNDING NOTICE For 1199SEIU Health Care Employees Pension Plan Introduction This notice includes important funding information about your pension plan (“the Plan”). This notice also provides a summary of federal rules governing multiemployer plans in reorganization and insolvent plans and benefit payments guaranteed by the Pension Benefit Guaranty Corporation (PBGC), a federal agency. This notice is for the plan year beginning January 1, 2008 and ending December 31, 2008 (“Plan Year”). Funded Percentage The funded percentage of a plan is a measure of how well that plan is funded. This percentage is obtained by dividing the Plan’s assets by its liabilities on the valuation date for the plan year. In general, the higher the percentage, the better funded the plan. The Plan’s funded percentage for the Plan Year and 2 preceding plan years is set forth in the chart below, along with a statement of the value of the Plan’s assets and liabilities for the same period.
2008 Plan Year 2007 Plan Year 2006 Plan Year Valuation Date January 1, 2008 NA NA Funded Percentage 119.6% NA NA Value of Assets $8,849,031,831 NA NA Value of Liabilities $7,399,726,878 NA NA
Transition Data For a brief transition period, the Plan is not required by law to report certain funding related information because such information may not exist for plan years before 2008. The plan has entered “not applicable” in the chart above to identify the information it does not have. In lieu of that information, however, the Plan is providing you with comparable information that reflects the funding status of the Plan under the law then in effect. Using the same calculations that the current law requires, the “funded percentage” was 124% for the 2007 Plan Year and 129% for the 2006 Plan Year. However, when calculating the funding status of the Plan under the law then in effect for the 2007 Plan Year, the Plan’s “funded current liability percentage” was 90.1%, the Plan’s assets were $8,334,853,576, and Plan liabilities were $9,247,995,033. For the 2006 Plan Year, the Plan’s “funded current liability percentage” was 97.5%, the Plan’s assets were $7,777,661,099, and Plan liabilities were $7,979,721,658. Fair Market Value of Assets Asset values in the chart above are actuarial values, not market values. Market values tend to show a clearer picture of a plan’s funded status as of a given point in time. However, because market values can fluctuate daily based on factors in the marketplace, such as changes in the stock market, pension law allows plans to use actuarial values for funding purposes. While actuarial values fluctuate less than market values, they are estimates. As of December 31, 2008,* the fair market value of the Plan’s assets was $6,043,766,127. As of December 31, 2007, the fair market value of the Plan’s assets was $9,082,662,956. As of December 31, 2006, the fair market value of the Plan’s assets was $8,743,762,876. *2008 assets values are preliminary and subject to confirmation when the yearly audit is finalized. Participant Information The total number of participants in the plan as of the Plan’s valuation date was 204,594. Of this number, 114,014 were active participants, 47,514 were retired or separated from service and receiving benefits, and 43,066 were
retired or separated from service and entitled to future benefits. Funding & Investment Policies The law requires that every pension plan have a procedure for establishing a funding policy to carry out the plan objectives. A funding policy relates to the level of contributions needed to pay for benefits promised under the plan currently and over the years. The plan is funded by contributions made by employers pursuant to collective bargaining agreements with the union that represents the plan’s participants.
“My Benefits Are Important to Me!” This group of younger workers at the NYU Hospital for Joint Diseases knows we can’t take our 1199SEIU benefit package for granted.
Once money is contributed to the Plan, the money is invested by plan officials called fiduciaries. Specific investments are made in accordance with the Plan’s investment policy. Generally speaking, an investment policy is a written statement that provides the fiduciaries who are responsible for plan investments with guidelines or general instructions concerning various types or categories of investment management decisions. The investment policy of the Plan is to ensure the solvency of the Pension Plan over time and to meet the Fund’s pension obligations as required. To meet this goal the Fund has established a target allocation among asset classes and acceptable ranges around that target. In accordance with the Plan’s investment policy, the Plan’s assets were allocated among the following categories of investments, as of the end of the Plan Year. These allocations are percentages of total assets: Asset Allocations* 1. Interest-bearing cash 2. U.S. government securities 3. Corporate debt instruments (other than employer securities): Preferred All other 4. Corporate stocks (other than employer securities): Preferred Common 5. Partnership/joint venture interests 6. Real estate (other than employer real property) 7. Loans (other than to participants) 8. Participant loans 9. Value of interest in common/collective trusts 10. Value of interest in pooled separate accounts 11. Value of interest in master trust investment accounts 12. Value of interest in 103-12 investment entities 13. Value of interest in registered investment companies (e.g., mutual funds) 14. Value of funds held in insurance co. general account (unallocated contracts) 15. Employer-related investments: Employer Securities Employer real property 16. Buildings and other property used in plan operation 17. Other (Bank Loans/Derivatives/Sec lending cash collateral)
Percentage 7.23% 10.36% 13.48% ________ ________ 0.10% 28.14% 19.94% 10.82% ________ ________ 5.11% ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ 4.82%
*The asset values are preliminary and subject to confirmation when the yearly audit is finalized. For information about the plan’s investment in any of the following types of investments as described in the chart above — common/collective trusts,
(L to R): Juan Escalera, Thyery Mercier, Judy Volpi, Jaclyn Bodon, Jana Auguste, Marcelle Moncrieffe, Claire Callender, Jessica Fung
Over the past few years, employers across the country have been shifting the burden of paying for healthcare and retirement benefits to their workers. So, it’s no surprise that protecting our pensions and comprehensive health benefits was a priority in the recent contract negotiations. And even though this group of young 1199SEIU members at the NYU Hospital for Joint Diseases is healthy and years away from retirement, they understand just how much their 1199SEIU benefits set them apart.
“Everyone I know has to pay out of pocket for their care,” agreed Jessica Fung, a Radiology Technologist who came straight off her parents’ health insurance to her Benefit Fund coverage. “I just can’t get over the fact that we don’t have any co-pays or deductibles.”
“I think young members especially understand the importance of preserving our benefits,” said Special Procedures Technologist Jana Auguste. In fact, Jana feels so strongly about her benefits that she agreed to join the Union’s negotiating team to help protect them. “We’re fortunate, given the current economic climate, to have such a plan. We see and read constantly about employers scaling back at the expense of their workers’ benefits.” During negotiations, she spoke out passionately about protecting our benefits and how fortunate we are to have a hasslefree health plan. “Accessing my benefits is so easy. I never have to worry about filling out complicated forms, getting reimbursed or paying the doctor. I just show up and present my Health ID card.”
CAT Scan Technician Judy Volpi came from a non1199SEIU job with health coverage that just didn’t match the benefits she has now. “I paid for my health benefits out of every paycheck, and there was no such thing as a defined benefit pension plan. You were completely on your own for retirement savings.” “A few years ago I had to get my knee scoped, and not once did I pay for anything,” said Juan Escalera, an X-ray Technician. “I know so many people who don’t have the benefits we have.” “As a single mother, I couldn’t have made it without these benefits!” added Jaclyn Bodon, a Lead Technologist. “I would have struggled tremendously if I didn’t have the coverage I need for my child. It’s a nice, secure feeling to know that we’re covered.”
FOR YOUR BENEFIT