Greater New York Benefit and Pension Funds Annual Report

ANNUAL REPORT 1199SEIU Greater New York Benefit and Pension Funds 1199SEIU Greater New York Education, Job Security and Worker Participation Funds 1199SEIU/Greater New York Child Care Fund

Ensuring that members have the personal and professional support they need to provide their patients with quality care

For information on all of our Funds, visit www.1199SEIUFunds.org

2013 Annual Report

TRAINING AND EMPLOYMENT FUNDS

EMPLOYER CHILD CARE FUND

Yvonne Armstrong 1199SEIU United Healthcare Workers East

Yvonne Armstrong 1199SEIU United Healthcare Workers East

Letter from the Executive Directors ... 3

Michael Balboni Greater New York Health Care Facilities Association

Michael Balboni Greater New York Health Care Facilities Association

1199SEIU Greater New York Benefit Fund ... 4-7

Pearl Granat 1199SEIU United Healthcare Workers East

Frances Gentle 1199SEIU United Healthcare Workers East

William Pascocello

William Pascocello

Robin Rosen Greater New York Health Care Facilities Association

Robin Rosen Greater New York Health Care Facilities Association

Allan Sherman 1199SEIU United Healthcare Workers East

Allan Sherman 1199SEIU United Healthcare Workers East

Table of Contents

Highlights ... 4 Our Members: Denise Betterson, Regeis Care Center ... 7 1199SEIU Greater New York Pension Fund ... 8-9 Highlights ... 9 1199SEIU Greater New York Training and Employment Funds ... 10-11 Highlights ... 10

Milagros Silva 1199SEIU United Healthcare Workers East – NJ Region Doug Wissmann Hillside Manor Rehabilitation and Extended Care Center

Our Members: Rahsaan Graves, Kingsbridge Heights Rehabilitation and Care Center ... 11 1199SEIU/Greater New York Child Care Fund ... 12-13 Highlights ... 12 Our Members: Bertha Huerta, Cliffside Rehabilitation and Residential Health Care Center ... 13 Our Funds’ 2013 Trustees ... 14-15

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1199SEIU Funds

15

Our Funds’ 2013 Trustees BENEFIT FUND

PENSION FUND

Yvonne Armstrong 1199SEIU United Healthcare Workers East Audit Committee, Collections Committee, Cost Containment Committee Executive Committee, Investment Committee

Shaywaal Amin 1199SEIU United Healthcare Workers East

Michael Balboni Greater New York Health Care Facilities Association Appeals Committee, Audit Committee, Collections Committee Cost Containment Committee, Executive Committee, Investment Committee Lisa Brown 1199SEIU United Healthcare Workers East Maria Castaneda 1199SEIU United Healthcare Workers East Appeals Committee, Audit Committee, Cost Containment Committee Executive Committee, Investment Committee Pearl Granat 1199SEIU United Healthcare Workers East Appeals Committee, Collections Committee William Pascocello Appeals Committee Robin Rosen Greater New York Health Care Facilities Association Audit Committee John Seales 1199SEIU United Healthcare Workers East Appeals Committee Allan Sherman 1199SEIU United Healthcare Workers East Collections Committee Neva Shillingford 1199SEIU United Healthcare Workers East Appeals Committee Milagros Silva 1199SEIU United Healthcare Workers East – NJ Region Howard Sukoff Creative Management Doug Wissmann Hillside Manor Rehabilitation and Extended Care Center Collections Committee, Cost Containment Committee

Yvonne Armstrong 1199SEIU United Healthcare Workers East Audit Committee, Collections Committee, Cost Containment Committee Executive Committee, Investment Committee Michael Balboni Greater New York Health Care Facilities Association Appeals Committee, Audit Committee, Collections Committee Cost Containment Committee, Executive Committee, Investment Committee Lisa Brown 1199SEIU United Healthcare Workers East Maria Castaneda 1199SEIU United Healthcare Workers East Appeals Committee, Audit Committee, Cost Containment Committee Executive Committee, Investment Committee Pearl Granat 1199SEIU United Healthcare Workers East Investment Committee William Pascocello Appeals Committee Robin Rosen Greater New York Health Care Facilities Association Audit Committee John Seales 1199SEIU United Healthcare Workers East Allan Sherman 1199SEIU United Healthcare Workers East

Letter from the Executive Directors This report highlights the 2013 achievements of our 1199SEIU Greater New York Benefit and Pension, Training and Employment, and Child Care Funds. It includes details about the work that we do throughout the year to care for our nursing home workers, retirees and their families – over 43,000 covered lives – and to strengthen the long-term care industry. We have also included personal stories from just a few of the members who have benefited from the support offered by our Funds.

The accomplishments we highlight in the following pages are only a part of the work we do every day to provide 1199SEIU members with health coverage, new skills and opportunities on the job, affordable, dependable child care and security in retirement.

We hope you enjoy reading about our work in 2013, and meeting some of the members who have taken advantage of the benefits we provide.

Sincerely,

Neva Shillingford 1199SEIU United Healthcare Workers East Appeals Committee Julio Vives 1199SEIU United Healthcare Workers East Doug Wissmann Hillside Manor Rehabilitation and Extended Care Center Collections Committee, Cost Containment Committee, Investment Committee

Mitra Behroozi, Benefit and Pension Funds

Deborah King, Training and Employment Funds

Vivian Fox, Child Care Funds 14

1199SEIU Funds

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1199SEIU Greater New York Benefit Fund

Making a Difference in Our Members’ Lives Bertha Huerta, Certified Nursing Assistant Cliffside Rehabilitation and Residential Health Care Center 1199SEIU member since 1985

Highlights

Child care benefits such as test-preparation courses and summer camp have helped Bertha Huerta give her children the experiences and support they need to excel in the classroom and in life, while giving Bertha peace of mind on the job.

Our 1199SEIU Greater New York Benefit Fund (GNYBF) covers more than 43,000 healthcare workers, family members and retirees.

The GNYBF offers a range of quality health benefits including medical, hospital, mental health, maternity care, dental, vision and prescription benefits, totaling close to $160 million each year. In addition, our members receive ancillary benefits like wellness and social assistance programs. By managing our plan with an eye toward value, our GNYBF is able to provide coverage for less money than a commercial health plan.

Bertha Huerta started working as a Certified Nursing Assistant nearly 40 years ago and has spent her entire career caring for residents at Cliffside Rehabilitation and Residential Health Care Center in Flushing. (Originally a member of Local 144, she became an 1199SEIU member after the two unions merged in 1998.) She has always taken pride in setting a good example for her three children – and making sure they seize the opportunities before them. “My two sons and my daughter have all grown thanks to programs from the Child Care Fund,” she said. “They’ve done better in school and become much more social because of extra time in the classroom and their trips to summer camp.”

OUR COVERED LIVES Total Lives: 43,065

Members: 20,567

Dependents: 19,788

In June 2013, Bertha’s daughter, Chloe, completed the ninth grade, and rather than take July off, she participated in the WorkForce 2000 Summer Academic Experience, studying geometry and Spanish at New York University for one month through the Child Care Fund. In the fall, she found that the extra work paid off. “I really improved my math skills,” said Chloe, now 16. “It was an area where I was struggling, but the class made a big difference.”

Retirees: 2,710

SCHEDULE OF BENEFITS In 2013, we spent $159 million on our members’ coverage.

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Hospital

$68.6 Million

Medical

$45.7 Million

Prescription

$18 Million

Lab & X-ray

$10.3 Million

Dental

$4.4 Million

Surgical

$7.2 Million

Anesthesia

$3.3 Million

Life Insurance/AD&D

$0.9 Million

Vision

$0.2 Million

*Other

$0.3 Million

2013 Total

$158.9 Million

* “Other” includes Earned Income Tax Credit (EITC), citizenship and wellness programs; and retiree activities.

Totals do not include claims incurred but not yet paid.

Note: For detailed information, please request Milliman’s Actuarial Report from the Fund.

“My two sons and my daughter have all grown thanks to programs from the Child Care Fund.”

In August, Chloe attended sleep-away camp through the 1199SEIU/ Employer Child Care Corporation’s Anne Shore Camp Program, which sends eligible children between ages 9 and 15 to summer sleepaway camps located throughout the Northeast. Chloe attended Camp Farwell, an all-girls camp located on Halls Lake in Newbury,Vermont, where she discovered kayaking, sailing and horseback riding. She loved the activities, she said, but was surprised by how easy it was to make friends during her three-week stay. “There were counselors from other countries and campers from all over, but I learned we had a lot more in common than I thought we would,” she said. “The whole experience was amazing, but especially the bonds I made and the new people in my life because I went to camp.”

Bertha’s sons benefited from her Child Care Fund benefits as well. Her 19-year-old, Glyn, got help preparing for his college entrance exams through the Fund’s SAT prep course and is enrolled at the University of Buffalo, while14-year-old Neil took a visual arts class as part of the Cultural Arts Program. Having raised her children in College Point, Queens, Bertha said she wanted to expose them to life outside the city but had to conquer her fear of letting them go. She credited the Child Care Fund staff with helping to speed that process along. “I can’t say enough about the people who administer the programs,” she said, “and the peace of mind I had knowing that when I go to work, I don’t have to worry about what my kids are doing.”

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13

2013 COST TO COVER A FAMILY OF FOUR

1199SEIU/Greater New York Child Care Fund

GNYBF: National:* NYC:**

Highlights As working families across the country struggle to balance their work and home lives, 1199SEIU members can take advantage of unique child care benefits that offer security and peace of mind. Our 1199SEIU/Greater New York Child Care Fund provides a broad assortment of programs to more than 1,000 children each year. These diverse benefits meet the full range of parents’ needs and support our members’ children from infancy through college with voucher reimbursements for day care, after-school care and summer day camps; quality pre-school education through our 1199SEIU Future of America Learning Center; holiday and Saturday cultural arts programs for children whose parents work weekends; summer sleepaway camp; WorkForce 2000 and SAT Prep programs to help teens succeed in school and in the workplace; and college fairs and scholarships. In 2013, we were able to add 12 new summer day camp providers to meet members’ needs in specific locations. The Fund also connects parents with the services they need through our Child Care Resource and Referral Services, which helps members find high-quality care close to their home or workplace, and offers them workshops and seminars throughout the year.

* 2013 Milliman Medical Index ** NYC total represents Milliman national average adjusted for NYC area

AVERAGE PER LIFE TREND 2010-2013

7.1% 3.4% GNYBF

Programs Vouchers (After-School Care and Day Care) Summer Day Camp & Sleep-Away Camp Programs Holiday Programs Scholarships Youth Programs Cultural Arts Programs Child Care Learning Center TOTAL

National

Benefits Provided 583 313 12 227 27 8 1 1,171

OUR WORK IN 2013 In addition to child care services, the Fund provided programs that support our 1199SEIU parents:

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$16,347 $22,030 $25,137

MANAGING OUR HEALTHCARE DOLLARS The Fund manages our healthcare dollars through a series of cost containment programs such as The 90Day Rx Solution for long-term medications, mandatory use of generics and our Preferred Drug List, and prior authorization for high-end imaging and provider privileging programs. These programs help ensure that our limited resources pay for the most effective and efficient care for our members by maximizing savings while maintaining members’ access to necessary services.

As a result, the Fund’s actuaries predict that the programs in effect through 2013 would save the GNYBF $24 million by September 2014, exceeding by $3.5 million the $20.5 million goal mandated by a 2010 Arbitration Award.

Since 2010, a series of arbitration awards have provided our Greater New York Benefit Fund with additional stability by calling for shared sacrifices from members and employers, including higher employer contributions, member premium contributions for spousal coverage and co-pays on certain services.

2013 Cost Containment Programs

KEEPING COSTS BELOW NATIONAL AVERAGES We have worked to keep our cost trends below national averages. Since 2001, the GNYBF’s costs have risen only 92.6%, while nationally, healthcare costs rose by 162.1%.

The Fund’s annual cost trends have fluctuated over the past several years, due to the trend swings inherent in small funds and the impact of the benefit changes required by recent arbitration awards.

However, on a four-year average basis, they remain lower than national trends.

UÊ "ÕÀÊ `Ê >ÀiÊ,ià ÕÀViÊ> `Ê,iviÀÀ> Ê-iÀÛ ViÃÊ i «i`Ê i>À ÞÊ äÊ i LiÀÃÊw `ÊV `ÊV>ÀiÊV ÃiÊÌ ÊÜ iÀiÊ they live or work. The service was more critical than ever this year, in light of the many members forced to find alternate care after their homes or workplaces were affected by Hurricane Sandy.

Nat’l Healthcare Costs: +162.1% since 2001 GNYBF Costs: +92.6% since 2001

UÊ "ÛiÀÊ{äÊ i LiÀÃÊ«>ÀÌ V «>Ìi`Ê Ê£ÓÊ«>Ài Ì }ÊÃi >ÀÃÊL>Ãi`Ê ÊV ViÀ ÃÊÌ >ÌÊ«>Ài ÌÃÊà >Ài`ÊÜ Ì Ê the Fund, such as after-school programs, middle school curriculum, summer job opportunities for youth and transitioning to college. Our popular “Quality Time and Affordable Activities” seminar helped members identify ways to engage their children in low-cost, creative activities, while the “Know Your Child, Know Your Computer” seminar focused on creating safe computer guidelines for children and monitoring their screen time.

Year-to-Year Cost Trends (Actual) Year 2010 2011 2012 2013

Per Member 2.2% -7.9% -4.9% 16.1%

Per Life 2% -0.3% -4.1% 17%

National 7.8% 7.3% 6.9% 6.3%

Pharmacy: $2.6 Million

Clinical, Utilization and Outcome Management*: $0.7 Million

Preferred Provider Networks: $1.73 Million Total 2013 Savings: $5.02 Million

* Hospital and medical; utilization management for prescription is included in pharmacy savings.

Note: Cost savings, trends and Family of Four healthcare costs refer to members employed in the New York metro area who are covered by the GNYBF’s self-administered plan. The remaining statistics include an additional 2,647 members employed in New Jersey and their dependents, who receive a separate benefit package administered through Aetna.

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Making a Difference in Our Members’ Lives Rahsaan Graves, Certified Nursing Assistant Kingsbridge Heights Rehabilitation and Care Center – 1199SEIU member since 1990

After participating in Kingsbridge Heights’ resident evacuations during and after Hurricane Sandy, Rahsaan Graves shared his experience with representatives of more than 80 facilities.

Speaking at an April 2013 conference on disaster preparedness for long-term care management facilities, Certified Nursing Assistant Rahsaan Graves said he was proud of the swift response under pressure that helped keep residents at Kingsbridge Heights Rehabilitation and Care Center safe during Hurricane Sandy.

The storm wreaked havoc like none he had seen in his 24 years at Kingsbridge Heights – and was a powerful reminder of the 1199SEIU Training and Employment Funds’ commitment to its members and their residents. “The education, training and support we receive give us a sense of security, and having labor and management on the same page, like they are at Kingsbridge, is an important part of making sure residents get the quality care they deserve,” he said. “In an emergency, it’s even more essential.”

SUPPORTING MEMBERS’ HEALTH

The severe damage inflicted by Hurricane Sandy on numerous nursing facilities served as a call to action to help bolster the emergency preparedness of 1199SEIU Greater New York members. As a result, staff members from the 1199SEIU Greater New York Worker Participation Fund, Inc., collaborated with national experts to help train teams of nursing home employees at the symposium, “The Essentials of Incident Command for Long-Term Care Management.” Hosted by the 1199SEIU Training and Employment Funds and the Greater New York Worker Participation Fund, Inc., the conference gathered these teams of front-line healthcare workers, management and Union representatives to share best practices for emergency preparedness, particularly ways to coordinate advance preparations and improve communications systems between facilities. “We had at least 40 residents who needed to be relocated, so our first job was to find out where we could move them,” Rahsaan said. “But with all the power outages and flooding, we weren’t sure which homes in the area had the capacity to accept new people.”

In 2013, our worksite clinics, health fairs, health awareness days, and wellness, nutrition, stress management, crisis intervention and prenatal workshops* served over 2,000 members, and our personalized Health Coaching service connected with close to 800 members with chronic conditions. * Provided by Worksite Medical Services, P.C.

BEYOND HEALTH BENEFITS 1199SEIU members have access to a range of supportive benefits from help applying for U.S. citizenship, to tax and home mortgage assistance.

Citizenship: 87 members served, 85 new citizens Home Mortgage and Financial Wellness: 65 Tax Assistance (All Funds): 1,499

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“The education, training and support we receive give us a sense of security ... in an emergency, it’s even more essential.”

Over the past 20 years, Rahsaan has weathered a number of major storms, power outages and other emergency situations at Kingsbridge Heights, but Sandy was a game changer. After attending the symposium, Rahsaan said he was eager to return to Kingsbridge Heights armed with information about disaster preparedness to share with his co-workers. “Our first priority, which I spoke about at the conference, was to keep residents as comfortable as possible, both physically and emotionally,” he said, “and to help them feel secure at all times. We did that.”

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1199SEIU Greater New York Training and Employment Funds Highlights As the long-term care industry undergoes rapid and unprecedented change, our 1199SEIU Greater New York Training and Employment Funds are working to help ensure that 1199SEIU members and facilities have the skills and resources they need to provide high-quality resident care. Together, our 1199SEIU Greater New York Education Fund, 1199SEIU Greater New York Job Security Fund and 1199SEIU Greater New York Worker Participation Fund, Inc., serve over 2,000 members each year. Members can use their benefits to earn high school, college and advanced education degrees; upgrade their job skills to meet the constantly changing needs of the nursing home industry; access placement services and extended benefits if they are laid off from their jobs; and participate in joint labor-management projects to improve the work environment and quality of care at their facilities. In addition, nursing home employers benefit from a dedicated, highly skilled staff prepared to meet tomorrow’s long-term care needs.

OUR WORK IN 2013 Greater New York Education Fund Served 1,690 members In 2013, our Greater New York Education Fund continued to offer targeted training to support nursing homes and their staff in improving the quality of resident care. The Fund’s Spanish for Healthcare Workers courses helped staff members to better care for Spanish-speaking residents, teaching language skills in the context of care and incorporating the vocabulary most frequently needed in a nursing home setting. Members participating in the training reported they were better able to connect with residents in their daily interactions, while employers noted the courses improved their staff’s ability to deliver resident-centered care. The Fund also offered specialized training on Electronic Health Records (EHRs) to meet the growing demand for these skills as more nursing homes transition to EHRs. The 62 training sessions, which included 340 members, provided both basic computer skills for new users as well as a focus on the specific EHR systems used by individual facilities.

Greater New York Job Security Fund (GNYJSF) Served 365 members In 2013, the GNYJSF worked with 365 members, many of whom had lost their facilities and jobs in the aftermath of Hurricane Sandy. This included members from Bayview Nursing and Rehabilitation Center, Horizon Care Center, Resort Nursing Home, Sea Crest Rehabilitation and Healthcare Center, Shore View Nursing and Rehabilitation Center and Rockaway Care Center. The Fund also stepped in to provide additional support to workers affected by the storm, including extending the JSF benefit enrollment deadline, offering benefits to part-time workers who would not ordinarily be eligible and eliminating the terminal pay exhaustion requirements from the JSF stipend.

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“The recent Spanish language class at the facility was well received. Each week, the CNAs looked forward to learning how to communicate better with the population we serve here at KHRCC. The benefit for the residents is clear; it is easier to give care when staff are able to communicate in the residents’ native language. Communication is key between staff and caregiver, and this just made it better!”

Patricia Constantine, RN, MS, Director of Nursing, Kingsbridge Heights Rehabilitation and Care Center

Greater New York Worker Participation Fund, Inc. In 2013, with grant support from New York State, the Greater New York Worker Participation Fund, Inc., launched a pilot EHR training program at three Greater New York facilities. More than 450 workers at Dr. William O. Benenson Rehabilitation Pavilion, Flushing Manor Care Center and Flushing Manor Nursing and Rehabilitation participated in workshops to help their facilities transition to standardized, efficient electronic systems.

“The EHR instructors did a marvelous job with the classes they taught. Members of the staff commented on what a wonderful job they did, and feel more confident with operating a computer and above all, knowing how to communicate issues via email.

Not only was their technical expertise impressive, but their attentiveness, compassion and all around bedside manner was outstanding.”

Bill Mora, Director of Information Technology, Dr. William O. Benenson Rehabilitation Pavilion

The Fund also helped nursing homes improve their emergency preparedness following Hurricane Sandy with a two-day conference, and participated in a citywide emergency management training project conducted by the Primary Care Development Corporation (PCDC).

Making a Difference in Our Members’ Lives Denise Betterson, Licensed Practical Nurse Regeis Care Center 1199SEIU member since 2002

Motivated by a story in the Benefit Fund’s member magazine, For Your Benefit, Denise Betterson started a weight-loss contest at her facility and made healthy changes herself.

Like many healthcare workers, Denise Betterson hasn’t always cared for herself as well as she cares for residents at Regeis Care Center, where she has been a Licensed Practical Nurse for 10 years. But she was determined to take on her Type 2 diabetes with the same fighting spirit she used to survive breast cancer several years earlier.

So in February 2013, after her doctor had reminded her that losing weight and eating healthier foods would help control her diabetes, she began making changes in her diet.

Soon after, the spring issue of For Your Benefit – the Benefit Fund’s member magazine – arrived in her mailbox. The magazine included a story about a weight-loss contest at Workmen’s Circle MultiCare Center, and a “light went on,” said Denise, who suggested a similar “Biggest Loser” competition among her co-workers at Regeis. “It hit me as soon as I saw the photo on the cover,” she said. “I work in a similar setting and know co-workers who would like to get healthier, too.”

By the end of April, 10 1199SEIU members had entered the competition, and several members began walking around the Regeis facility on their lunch hour. After 10 weeks, the “Biggest Losers” were crowned, and while Denise didn’t finish in the top three, she did lose eight pounds during the competition and dropped a total of 15 pounds by the year’s end. Her goal is still to lose 25 pounds, she said, and maintaining her initial weight loss has encouraged her that her efforts will continue to pay off.

She walks regularly, drinks water instead of soda or sugary drinks and eats a diet rich in fruits and vegetables – and low in sugars and unhealthy fats. Not surprisingly, her health has improved. Rather than needing two injections every day to help control her diabetes, she now takes one pill. “I feel so much better,” she said. “But it’s also been inspiring to see my friends and co-workers exercising, losing weight and eating healthy.”

One of those friends is Marlene Abad, a Nursing Assistant at Regeis and an 1199SEIU member for nine years. Marlene lost nearly 10 pounds during the weight-loss contest and now walks to Regeis and home most every day – about a mile each way. Like Denise, she has made healthy eating a way of life and found that there’s strength in numbers. “Several of us eat lunch together and we all support each other,” Marlene said. “Sometimes all it takes is a little encouragement to stick with a healthy diet.”

“I feel so much better,” Denise said. “But it’s also been inspiring to see my friends and co-workers exercising, losing weight and eating healthy.”

1199SEIU Funds

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1199SEIU Greater New York Pension Fund Highlights Our 1199SEIU Greater New York Pension Fund supports 1199SEIU retirees in achieving the financial security that they will need in retirement. Eligible retirees receive a defined benefit pension – a set monthly payment that less than one in five workers around the country can count on today. With close to $540 million in assets, the Pension Fund currently pays out more than $54 million each year to our nearly 9,300 retirees and their beneficiaries. $54.4 million paid to 9,261 retirees in 2013

Target Asset Allocations Equity U.S. Equity = 20% Int’l Equity = 15% Emerging Market = 5% Total Equity = 40%

SOUND INVESTMENT STRATEGY Our Pension Fund diversifies its investment strategy between equity, fixed income and alternative opportunities.

Net Pension Returns 2009 =

18.2%

2010 =

14.7%

2011 =

1.3%

2012 =

14.7%

2013 =

16.8%

Fixed Income Core Bonds = 10% High Yield/Bank Loan = 10% Emerging Mkt Bonds = 5% Total Fixed Income = 25% Alternatives Real Estate = 8% Private Equity = 8% Hedge Funds = 13% Special Opportunities = 6% Total Alternatives = 35% Total = 100%

Equity 40%

Pension Assets 2009 = $382.8 Million 2010 = $420.7 Million 2011 = $418.6 Million 2012 = $471.5 Million

Fixed Income 25%

Alternatives 35%

2013 = $537.9 Million 8

1199SEIU Funds

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1199SEIU Greater New York Pension Fund Highlights Our 1199SEIU Greater New York Pension Fund supports 1199SEIU retirees in achieving the financial security that they will need in retirement. Eligible retirees receive a defined benefit pension – a set monthly payment that less than one in five workers around the country can count on today. With close to $540 million in assets, the Pension Fund currently pays out more than $54 million each year to our nearly 9,300 retirees and their beneficiaries. $54.4 million paid to 9,261 retirees in 2013

Target Asset Allocations Equity U.S. Equity = 20% Int’l Equity = 15% Emerging Market = 5% Total Equity = 40%

SOUND INVESTMENT STRATEGY Our Pension Fund diversifies its investment strategy between equity, fixed income and alternative opportunities.

Net Pension Returns 2009 =

18.2%

2010 =

14.7%

2011 =

1.3%

2012 =

14.7%

2013 =

16.8%

Fixed Income Core Bonds = 10% High Yield/Bank Loan = 10% Emerging Mkt Bonds = 5% Total Fixed Income = 25% Alternatives Real Estate = 8% Private Equity = 8% Hedge Funds = 13% Special Opportunities = 6% Total Alternatives = 35% Total = 100%

Equity 40%

Pension Assets 2009 = $382.8 Million 2010 = $420.7 Million 2011 = $418.6 Million 2012 = $471.5 Million

Fixed Income 25%

Alternatives 35%

2013 = $537.9 Million 8

1199SEIU Funds

9

1199SEIU Greater New York Training and Employment Funds Highlights As the long-term care industry undergoes rapid and unprecedented change, our 1199SEIU Greater New York Training and Employment Funds are working to help ensure that 1199SEIU members and facilities have the skills and resources they need to provide high-quality resident care. Together, our 1199SEIU Greater New York Education Fund, 1199SEIU Greater New York Job Security Fund and 1199SEIU Greater New York Worker Participation Fund, Inc., serve over 2,000 members each year. Members can use their benefits to earn high school, college and advanced education degrees; upgrade their job skills to meet the constantly changing needs of the nursing home industry; access placement services and extended benefits if they are laid off from their jobs; and participate in joint labor-management projects to improve the work environment and quality of care at their facilities. In addition, nursing home employers benefit from a dedicated, highly skilled staff prepared to meet tomorrow’s long-term care needs.

OUR WORK IN 2013 Greater New York Education Fund Served 1,690 members In 2013, our Greater New York Education Fund continued to offer targeted training to support nursing homes and their staff in improving the quality of resident care. The Fund’s Spanish for Healthcare Workers courses helped staff members to better care for Spanish-speaking residents, teaching language skills in the context of care and incorporating the vocabulary most frequently needed in a nursing home setting. Members participating in the training reported they were better able to connect with residents in their daily interactions, while employers noted the courses improved their staff’s ability to deliver resident-centered care. The Fund also offered specialized training on Electronic Health Records (EHRs) to meet the growing demand for these skills as more nursing homes transition to EHRs. The 62 training sessions, which included 340 members, provided both basic computer skills for new users as well as a focus on the specific EHR systems used by individual facilities.

Greater New York Job Security Fund (GNYJSF) Served 365 members In 2013, the GNYJSF worked with 365 members, many of whom had lost their facilities and jobs in the aftermath of Hurricane Sandy. This included members from Bayview Nursing and Rehabilitation Center, Horizon Care Center, Resort Nursing Home, Sea Crest Rehabilitation and Healthcare Center, Shore View Nursing and Rehabilitation Center and Rockaway Care Center. The Fund also stepped in to provide additional support to workers affected by the storm, including extending the JSF benefit enrollment deadline, offering benefits to part-time workers who would not ordinarily be eligible and eliminating the terminal pay exhaustion requirements from the JSF stipend.

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“The recent Spanish language class at the facility was well received. Each week, the CNAs looked forward to learning how to communicate better with the population we serve here at KHRCC. The benefit for the residents is clear; it is easier to give care when staff are able to communicate in the residents’ native language. Communication is key between staff and caregiver, and this just made it better!”

Patricia Constantine, RN, MS, Director of Nursing, Kingsbridge Heights Rehabilitation and Care Center

Greater New York Worker Participation Fund, Inc. In 2013, with grant support from New York State, the Greater New York Worker Participation Fund, Inc., launched a pilot EHR training program at three Greater New York facilities. More than 450 workers at Dr. William O. Benenson Rehabilitation Pavilion, Flushing Manor Care Center and Flushing Manor Nursing and Rehabilitation participated in workshops to help their facilities transition to standardized, efficient electronic systems.

“The EHR instructors did a marvelous job with the classes they taught. Members of the staff commented on what a wonderful job they did, and feel more confident with operating a computer and above all, knowing how to communicate issues via email.

Not only was their technical expertise impressive, but their attentiveness, compassion and all around bedside manner was outstanding.”

Bill Mora, Director of Information Technology, Dr. William O. Benenson Rehabilitation Pavilion

The Fund also helped nursing homes improve their emergency preparedness following Hurricane Sandy with a two-day conference, and participated in a citywide emergency management training project conducted by the Primary Care Development Corporation (PCDC).

Making a Difference in Our Members’ Lives Denise Betterson, Licensed Practical Nurse Regeis Care Center 1199SEIU member since 2002

Motivated by a story in the Benefit Fund’s member magazine, For Your Benefit, Denise Betterson started a weight-loss contest at her facility and made healthy changes herself.

Like many healthcare workers, Denise Betterson hasn’t always cared for herself as well as she cares for residents at Regeis Care Center, where she has been a Licensed Practical Nurse for 10 years. But she was determined to take on her Type 2 diabetes with the same fighting spirit she used to survive breast cancer several years earlier.

So in February 2013, after her doctor had reminded her that losing weight and eating healthier foods would help control her diabetes, she began making changes in her diet.

Soon after, the spring issue of For Your Benefit – the Benefit Fund’s member magazine – arrived in her mailbox. The magazine included a story about a weight-loss contest at Workmen’s Circle MultiCare Center, and a “light went on,” said Denise, who suggested a similar “Biggest Loser” competition among her co-workers at Regeis. “It hit me as soon as I saw the photo on the cover,” she said. “I work in a similar setting and know co-workers who would like to get healthier, too.”

By the end of April, 10 1199SEIU members had entered the competition, and several members began walking around the Regeis facility on their lunch hour. After 10 weeks, the “Biggest Losers” were crowned, and while Denise didn’t finish in the top three, she did lose eight pounds during the competition and dropped a total of 15 pounds by the year’s end. Her goal is still to lose 25 pounds, she said, and maintaining her initial weight loss has encouraged her that her efforts will continue to pay off.

She walks regularly, drinks water instead of soda or sugary drinks and eats a diet rich in fruits and vegetables – and low in sugars and unhealthy fats. Not surprisingly, her health has improved. Rather than needing two injections every day to help control her diabetes, she now takes one pill. “I feel so much better,” she said. “But it’s also been inspiring to see my friends and co-workers exercising, losing weight and eating healthy.”

One of those friends is Marlene Abad, a Nursing Assistant at Regeis and an 1199SEIU member for nine years. Marlene lost nearly 10 pounds during the weight-loss contest and now walks to Regeis and home most every day – about a mile each way. Like Denise, she has made healthy eating a way of life and found that there’s strength in numbers. “Several of us eat lunch together and we all support each other,” Marlene said. “Sometimes all it takes is a little encouragement to stick with a healthy diet.”

“I feel so much better,” Denise said. “But it’s also been inspiring to see my friends and co-workers exercising, losing weight and eating healthy.”

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Making a Difference in Our Members’ Lives Rahsaan Graves, Certified Nursing Assistant Kingsbridge Heights Rehabilitation and Care Center – 1199SEIU member since 1990

After participating in Kingsbridge Heights’ resident evacuations during and after Hurricane Sandy, Rahsaan Graves shared his experience with representatives of more than 80 facilities.

Speaking at an April 2013 conference on disaster preparedness for long-term care management facilities, Certified Nursing Assistant Rahsaan Graves said he was proud of the swift response under pressure that helped keep residents at Kingsbridge Heights Rehabilitation and Care Center safe during Hurricane Sandy.

The storm wreaked havoc like none he had seen in his 24 years at Kingsbridge Heights – and was a powerful reminder of the 1199SEIU Training and Employment Funds’ commitment to its members and their residents. “The education, training and support we receive give us a sense of security, and having labor and management on the same page, like they are at Kingsbridge, is an important part of making sure residents get the quality care they deserve,” he said. “In an emergency, it’s even more essential.”

SUPPORTING MEMBERS’ HEALTH

The severe damage inflicted by Hurricane Sandy on numerous nursing facilities served as a call to action to help bolster the emergency preparedness of 1199SEIU Greater New York members. As a result, staff members from the 1199SEIU Greater New York Worker Participation Fund, Inc., collaborated with national experts to help train teams of nursing home employees at the symposium, “The Essentials of Incident Command for Long-Term Care Management.” Hosted by the 1199SEIU Training and Employment Funds and the Greater New York Worker Participation Fund, Inc., the conference gathered these teams of front-line healthcare workers, management and Union representatives to share best practices for emergency preparedness, particularly ways to coordinate advance preparations and improve communications systems between facilities. “We had at least 40 residents who needed to be relocated, so our first job was to find out where we could move them,” Rahsaan said. “But with all the power outages and flooding, we weren’t sure which homes in the area had the capacity to accept new people.”

In 2013, our worksite clinics, health fairs, health awareness days, and wellness, nutrition, stress management, crisis intervention and prenatal workshops* served over 2,000 members, and our personalized Health Coaching service connected with close to 800 members with chronic conditions. * Provided by Worksite Medical Services, P.C.

BEYOND HEALTH BENEFITS 1199SEIU members have access to a range of supportive benefits from help applying for U.S. citizenship, to tax and home mortgage assistance.

Citizenship: 87 members served, 85 new citizens Home Mortgage and Financial Wellness: 65 Tax Assistance (All Funds): 1,499

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“The education, training and support we receive give us a sense of security ... in an emergency, it’s even more essential.”

Over the past 20 years, Rahsaan has weathered a number of major storms, power outages and other emergency situations at Kingsbridge Heights, but Sandy was a game changer. After attending the symposium, Rahsaan said he was eager to return to Kingsbridge Heights armed with information about disaster preparedness to share with his co-workers. “Our first priority, which I spoke about at the conference, was to keep residents as comfortable as possible, both physically and emotionally,” he said, “and to help them feel secure at all times. We did that.”

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2013 COST TO COVER A FAMILY OF FOUR

1199SEIU/Greater New York Child Care Fund

GNYBF: National:* NYC:**

Highlights As working families across the country struggle to balance their work and home lives, 1199SEIU members can take advantage of unique child care benefits that offer security and peace of mind. Our 1199SEIU/Greater New York Child Care Fund provides a broad assortment of programs to more than 1,000 children each year. These diverse benefits meet the full range of parents’ needs and support our members’ children from infancy through college with voucher reimbursements for day care, after-school care and summer day camps; quality pre-school education through our 1199SEIU Future of America Learning Center; holiday and Saturday cultural arts programs for children whose parents work weekends; summer sleepaway camp; WorkForce 2000 and SAT Prep programs to help teens succeed in school and in the workplace; and college fairs and scholarships. In 2013, we were able to add 12 new summer day camp providers to meet members’ needs in specific locations. The Fund also connects parents with the services they need through our Child Care Resource and Referral Services, which helps members find high-quality care close to their home or workplace, and offers them workshops and seminars throughout the year.

* 2013 Milliman Medical Index ** NYC total represents Milliman national average adjusted for NYC area

AVERAGE PER LIFE TREND 2010-2013

7.1% 3.4% GNYBF

Programs Vouchers (After-School Care and Day Care) Summer Day Camp & Sleep-Away Camp Programs Holiday Programs Scholarships Youth Programs Cultural Arts Programs Child Care Learning Center TOTAL

National

Benefits Provided 583 313 12 227 27 8 1 1,171

OUR WORK IN 2013 In addition to child care services, the Fund provided programs that support our 1199SEIU parents:

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$16,347 $22,030 $25,137

MANAGING OUR HEALTHCARE DOLLARS The Fund manages our healthcare dollars through a series of cost containment programs such as The 90Day Rx Solution for long-term medications, mandatory use of generics and our Preferred Drug List, and prior authorization for high-end imaging and provider privileging programs. These programs help ensure that our limited resources pay for the most effective and efficient care for our members by maximizing savings while maintaining members’ access to necessary services.

As a result, the Fund’s actuaries predict that the programs in effect through 2013 would save the GNYBF $24 million by September 2014, exceeding by $3.5 million the $20.5 million goal mandated by a 2010 Arbitration Award.

Since 2010, a series of arbitration awards have provided our Greater New York Benefit Fund with additional stability by calling for shared sacrifices from members and employers, including higher employer contributions, member premium contributions for spousal coverage and co-pays on certain services.

2013 Cost Containment Programs

KEEPING COSTS BELOW NATIONAL AVERAGES We have worked to keep our cost trends below national averages. Since 2001, the GNYBF’s costs have risen only 92.6%, while nationally, healthcare costs rose by 162.1%.

The Fund’s annual cost trends have fluctuated over the past several years, due to the trend swings inherent in small funds and the impact of the benefit changes required by recent arbitration awards.

However, on a four-year average basis, they remain lower than national trends.

UÊ "ÕÀÊ `Ê >ÀiÊ,ià ÕÀViÊ> `Ê,iviÀÀ> Ê-iÀÛ ViÃÊ i «i`Ê i>À ÞÊ äÊ i LiÀÃÊw `ÊV `ÊV>ÀiÊV ÃiÊÌ ÊÜ iÀiÊ they live or work. The service was more critical than ever this year, in light of the many members forced to find alternate care after their homes or workplaces were affected by Hurricane Sandy.

Nat’l Healthcare Costs: +162.1% since 2001 GNYBF Costs: +92.6% since 2001

UÊ "ÛiÀÊ{äÊ i LiÀÃÊ«>ÀÌ V «>Ìi`Ê Ê£ÓÊ«>Ài Ì }ÊÃi >ÀÃÊL>Ãi`Ê ÊV ViÀ ÃÊÌ >ÌÊ«>Ài ÌÃÊà >Ài`ÊÜ Ì Ê the Fund, such as after-school programs, middle school curriculum, summer job opportunities for youth and transitioning to college. Our popular “Quality Time and Affordable Activities” seminar helped members identify ways to engage their children in low-cost, creative activities, while the “Know Your Child, Know Your Computer” seminar focused on creating safe computer guidelines for children and monitoring their screen time.

Year-to-Year Cost Trends (Actual) Year 2010 2011 2012 2013

Per Member 2.2% -7.9% -4.9% 16.1%

Per Life 2% -0.3% -4.1% 17%

National 7.8% 7.3% 6.9% 6.3%

Pharmacy: $2.6 Million

Clinical, Utilization and Outcome Management*: $0.7 Million

Preferred Provider Networks: $1.73 Million Total 2013 Savings: $5.02 Million

* Hospital and medical; utilization management for prescription is included in pharmacy savings.

Note: Cost savings, trends and Family of Four healthcare costs refer to members employed in the New York metro area who are covered by the GNYBF’s self-administered plan. The remaining statistics include an additional 2,647 members employed in New Jersey and their dependents, who receive a separate benefit package administered through Aetna.

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1199SEIU Greater New York Benefit Fund

Making a Difference in Our Members’ Lives Bertha Huerta, Certified Nursing Assistant Cliffside Rehabilitation and Residential Health Care Center 1199SEIU member since 1985

Highlights

Child care benefits such as test-preparation courses and summer camp have helped Bertha Huerta give her children the experiences and support they need to excel in the classroom and in life, while giving Bertha peace of mind on the job.

Our 1199SEIU Greater New York Benefit Fund (GNYBF) covers more than 43,000 healthcare workers, family members and retirees.

The GNYBF offers a range of quality health benefits including medical, hospital, mental health, maternity care, dental, vision and prescription benefits, totaling close to $160 million each year. In addition, our members receive ancillary benefits like wellness and social assistance programs. By managing our plan with an eye toward value, our GNYBF is able to provide coverage for less money than a commercial health plan.

Bertha Huerta started working as a Certified Nursing Assistant nearly 40 years ago and has spent her entire career caring for residents at Cliffside Rehabilitation and Residential Health Care Center in Flushing. (Originally a member of Local 144, she became an 1199SEIU member after the two unions merged in 1998.) She has always taken pride in setting a good example for her three children – and making sure they seize the opportunities before them. “My two sons and my daughter have all grown thanks to programs from the Child Care Fund,” she said. “They’ve done better in school and become much more social because of extra time in the classroom and their trips to summer camp.”

OUR COVERED LIVES Total Lives: 43,065

Members: 20,567

Dependents: 19,788

In June 2013, Bertha’s daughter, Chloe, completed the ninth grade, and rather than take July off, she participated in the WorkForce 2000 Summer Academic Experience, studying geometry and Spanish at New York University for one month through the Child Care Fund. In the fall, she found that the extra work paid off. “I really improved my math skills,” said Chloe, now 16. “It was an area where I was struggling, but the class made a big difference.”

Retirees: 2,710

SCHEDULE OF BENEFITS In 2013, we spent $159 million on our members’ coverage.

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Hospital

$68.6 Million

Medical

$45.7 Million

Prescription

$18 Million

Lab & X-ray

$10.3 Million

Dental

$4.4 Million

Surgical

$7.2 Million

Anesthesia

$3.3 Million

Life Insurance/AD&D

$0.9 Million

Vision

$0.2 Million

*Other

$0.3 Million

2013 Total

$158.9 Million

* “Other” includes Earned Income Tax Credit (EITC), citizenship and wellness programs; and retiree activities.

Totals do not include claims incurred but not yet paid.

Note: For detailed information, please request Milliman’s Actuarial Report from the Fund.

“My two sons and my daughter have all grown thanks to programs from the Child Care Fund.”

In August, Chloe attended sleep-away camp through the 1199SEIU/ Employer Child Care Corporation’s Anne Shore Camp Program, which sends eligible children between ages 9 and 15 to summer sleepaway camps located throughout the Northeast. Chloe attended Camp Farwell, an all-girls camp located on Halls Lake in Newbury,Vermont, where she discovered kayaking, sailing and horseback riding. She loved the activities, she said, but was surprised by how easy it was to make friends during her three-week stay. “There were counselors from other countries and campers from all over, but I learned we had a lot more in common than I thought we would,” she said. “The whole experience was amazing, but especially the bonds I made and the new people in my life because I went to camp.”

Bertha’s sons benefited from her Child Care Fund benefits as well. Her 19-year-old, Glyn, got help preparing for his college entrance exams through the Fund’s SAT prep course and is enrolled at the University of Buffalo, while14-year-old Neil took a visual arts class as part of the Cultural Arts Program. Having raised her children in College Point, Queens, Bertha said she wanted to expose them to life outside the city but had to conquer her fear of letting them go. She credited the Child Care Fund staff with helping to speed that process along. “I can’t say enough about the people who administer the programs,” she said, “and the peace of mind I had knowing that when I go to work, I don’t have to worry about what my kids are doing.”

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Our Funds’ 2013 Trustees BENEFIT FUND

PENSION FUND

Yvonne Armstrong 1199SEIU United Healthcare Workers East Audit Committee, Collections Committee, Cost Containment Committee Executive Committee, Investment Committee

Shaywaal Amin 1199SEIU United Healthcare Workers East

Michael Balboni Greater New York Health Care Facilities Association Appeals Committee, Audit Committee, Collections Committee Cost Containment Committee, Executive Committee, Investment Committee Lisa Brown 1199SEIU United Healthcare Workers East Maria Castaneda 1199SEIU United Healthcare Workers East Appeals Committee, Audit Committee, Cost Containment Committee Executive Committee, Investment Committee Pearl Granat 1199SEIU United Healthcare Workers East Appeals Committee, Collections Committee William Pascocello Appeals Committee Robin Rosen Greater New York Health Care Facilities Association Audit Committee John Seales 1199SEIU United Healthcare Workers East Appeals Committee Allan Sherman 1199SEIU United Healthcare Workers East Collections Committee Neva Shillingford 1199SEIU United Healthcare Workers East Appeals Committee Milagros Silva 1199SEIU United Healthcare Workers East – NJ Region Howard Sukoff Creative Management Doug Wissmann Hillside Manor Rehabilitation and Extended Care Center Collections Committee, Cost Containment Committee

Yvonne Armstrong 1199SEIU United Healthcare Workers East Audit Committee, Collections Committee, Cost Containment Committee Executive Committee, Investment Committee Michael Balboni Greater New York Health Care Facilities Association Appeals Committee, Audit Committee, Collections Committee Cost Containment Committee, Executive Committee, Investment Committee Lisa Brown 1199SEIU United Healthcare Workers East Maria Castaneda 1199SEIU United Healthcare Workers East Appeals Committee, Audit Committee, Cost Containment Committee Executive Committee, Investment Committee Pearl Granat 1199SEIU United Healthcare Workers East Investment Committee William Pascocello Appeals Committee Robin Rosen Greater New York Health Care Facilities Association Audit Committee John Seales 1199SEIU United Healthcare Workers East Allan Sherman 1199SEIU United Healthcare Workers East

Letter from the Executive Directors This report highlights the 2013 achievements of our 1199SEIU Greater New York Benefit and Pension, Training and Employment, and Child Care Funds. It includes details about the work that we do throughout the year to care for our nursing home workers, retirees and their families – over 43,000 covered lives – and to strengthen the long-term care industry. We have also included personal stories from just a few of the members who have benefited from the support offered by our Funds.

The accomplishments we highlight in the following pages are only a part of the work we do every day to provide 1199SEIU members with health coverage, new skills and opportunities on the job, affordable, dependable child care and security in retirement.

We hope you enjoy reading about our work in 2013, and meeting some of the members who have taken advantage of the benefits we provide.

Sincerely,

Neva Shillingford 1199SEIU United Healthcare Workers East Appeals Committee Julio Vives 1199SEIU United Healthcare Workers East Doug Wissmann Hillside Manor Rehabilitation and Extended Care Center Collections Committee, Cost Containment Committee, Investment Committee

Mitra Behroozi, Benefit and Pension Funds

Deborah King, Training and Employment Funds

Vivian Fox, Child Care Funds 14

1199SEIU Funds

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2013 Annual Report

TRAINING AND EMPLOYMENT FUNDS

EMPLOYER CHILD CARE FUND

Yvonne Armstrong 1199SEIU United Healthcare Workers East

Yvonne Armstrong 1199SEIU United Healthcare Workers East

Letter from the Executive Directors ... 3

Michael Balboni Greater New York Health Care Facilities Association

Michael Balboni Greater New York Health Care Facilities Association

1199SEIU Greater New York Benefit Fund ... 4-7

Pearl Granat 1199SEIU United Healthcare Workers East

Frances Gentle 1199SEIU United Healthcare Workers East

William Pascocello

William Pascocello

Robin Rosen Greater New York Health Care Facilities Association

Robin Rosen Greater New York Health Care Facilities Association

Allan Sherman 1199SEIU United Healthcare Workers East

Allan Sherman 1199SEIU United Healthcare Workers East

Table of Contents

Highlights ... 4 Our Members: Denise Betterson, Regeis Care Center ... 7 1199SEIU Greater New York Pension Fund ... 8-9 Highlights ... 9 1199SEIU Greater New York Training and Employment Funds ... 10-11 Highlights ... 10

Milagros Silva 1199SEIU United Healthcare Workers East – NJ Region Doug Wissmann Hillside Manor Rehabilitation and Extended Care Center

Our Members: Rahsaan Graves, Kingsbridge Heights Rehabilitation and Care Center ... 11 1199SEIU/Greater New York Child Care Fund ... 12-13 Highlights ... 12 Our Members: Bertha Huerta, Cliffside Rehabilitation and Residential Health Care Center ... 13 Our Funds’ 2013 Trustees ... 14-15

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ANNUAL REPORT 1199SEIU Greater New York Benefit and Pension Funds 1199SEIU Greater New York Education, Job Security and Worker Participation Funds 1199SEIU/Greater New York Child Care Fund

Ensuring that members have the personal and professional support they need to provide their patients with quality care

For information on all of our Funds, visit www.1199SEIUFunds.org