GNY Employer News - Winter 2006-2007

Winter 2006-2007

Cross Funds Administrative Initiative Enhances Efficiency and Provides Better Service to Members and Employers While the 1199SEIU Benefit and Pension, Training and Employment, and Child Care Funds all provide different benefits, they are provided to the very same members. Since the Funds use similar organizational functions to deliver these benefits, there is significant overlap in the Funds’ administrative work.

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

First Class U.S. Postage PAID New York, NY Permit No. 3700

That’s why the employer groups and the Union are supporting an “all Funds” approach that would streamline the Funds’ work, using the same systems to more effectively and efficiently deliver services to both members and employers. Together, the Family of Funds collectively administers 20 Funds that cover a range of needs across the industry, including hospitals, nursing homes and home care. Because the Funds work so closely together, it makes

sense to improve their operations by integrating administrative departments and eliminating duplication of work.

The Funds already share four common departments – Legal, Contracts and Collections, Communications, and Investments.

Together, the Family of Funds collectively administers 20 Funds that cover a range of needs across the industry, including hospitals, nursing homes and home care.

Through the fall, the Cross Funds Steering Committee – which includes Union and Management Trustees as well as the Executive Directors of the three umbrella Funds – examined ways to combine and manage common adminis-

trative functions. By the end of the year, the Funds will also share Accounting and Finance, Audit, Facilities, Fraud and Security, Human Resources, and Information Technology departments, dramatically improving the ways the Funds operate and provide services to members and employers.

IN THIS ISSUE . . .

Protecting Our Health Reaches More Than 10,000 Members . . . . . 2 GNY Education Fund Provides the Training and Support Workers and Nursing Homes Need . . . . . . . 3 Are Your New Employees Receiving Their Health Benefits? . . 4 Record Number of Members Register for Child Care Benefits . . . 4 Child Care Gala Meets Fundraising Goal . . . . . . . . . . . . . . 5 Nursing Scholarships Address the Shortage . . . . . . . . . . . . . . . . . 6 Scholarship and Camp Opportunities for Members’ Children . . . . . . . . . 6

LETTER FROM THE EXECUTIVE DIRECTORS We’re all aware of the challenges facing the healthcare industry. In the wake of the Berger Commission’s recommendations for the restructuring

Benefit Fund’s Protecting Our Health Program Reaches More Than 10,000 Members

and closing of nursing homes and hospitals, we know that facilities are making extra efforts to use their resources as effectively as possible. The Family of Funds is no exception.

In this edition, you’ll read about how the Funds are streamlining common administrative functions across the Benefit and Pension, Training and Employment and

Throughout the fall, more than 10,000 1199SEIU members took part in the Benefit Fund’s Protecting Our Health meetings, nutritional workshops and health fairs. These events are teaching 1199SEIU members to adopt healthier lifestyles through diet, exercise, ongoing relationships with their doctors, and regular preventive screenings and will hopefully go a long way toward reducing healthcare costs associated with treating chronic conditions.

Child Care Funds to provide more services more efficiently to

Due to popular

1199SEIU members and employers.

demand, more Protecting Our Health

You’ll also read about the valuable programs that the Greater New York Education Fund is offering to

programs are being

nursing homes and nursing home workers, how the

scheduled for January

Child Care Fund is supporting 1199SEIU families, and

and later dates.

programs 1199SEIU parents can take advantage of now for the coming year.

We’re all in the business of caring. By giving nursing home workers the support they need, we’re ultimately improving the level of patient care together.

Sincerely,

Mitra Behroozi Executive Director Benefit and Pension Funds

Deborah King Vivian Fox Executive Director Executive Director Training and Employment Child Care Funds Funds

2 EMPLOYER NEWS Winter 2006-2007

For more information on Protecting Our Health, speak to your Outreach Coordinator or contact the Outreach Department at (646) 473-6930.

Annual Funding Notice for the 1199SEIU Greater New York Pension Fund Introduction This notice, which federal law requires all multiemployer plans to send annually, includes important information about the funding level of the 1199SEIU Greater New York Pension Fund, EIN 13-6601940, PN 001 (Plan). This notice also includes information about rules governing 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, 2005 and ending December 31, 2005 (Plan Year).

Plan’s Funding Level The Plan’s “funded current liability percentage” for the Plan Year was 61.8%. In general, the higher the percentage, the better funded the plan.

The funded current liability percentage, however, is not indicative of how well a plan will be funded in the future or if it terminates. Whether this percentage will increase or decrease over time depends on a number of factors, including how the plan’s investments perform, what assumptions the plan makes about rates of return, whether employer contributions to the fund increase or decline, and whether benefits payments from the fund increase or decline.

Plan’s Financial Information The market value of the Plan’s assets as of January 1, 2006 was $459,008,417.

The total amount of benefit payments for the Plan Year was $29,603,276. The ratio of assets to benefit payments is 15.5.

This ratio suggests that the Plan’s assets could provide for approximately 15.5 years of benefit payments in annual amounts equal to what was paid out in the Plan Year. However, the ratio does not take into account future changes in total benefit payments or plan assets.

Rules Governing Insolvent Plans Federal law has a number of special rules that apply to financially troubled multiemployer plans. Under so-called “plan reorganization rules,” a plan with adverse financial experience may need to increase required contributions and may, under certain circumstances, reduce benefits that are not eligible for the

PBGC’s guarantee (generally, benefits that have been in effect for less than 60 months). If a plan is in reorganization status, it must provide notification that the plan is in reorganization status and that, if contributions are not increased, accrued benefits under the plan may be reduced or an excise tax may be imposed (or both). The law requires the plan to furnish this notification to each contributing employer and the labor organization.

Despite the special plan reorganization rules, a plan in reorganization nevertheless could become insolvent. A plan is insolvent for a plan year if its available financial resources are not sufficient to pay benefits when due for the plan year.

An insolvent plan must reduce benefit payments to the highest level that can be paid from the plan’s available financial resources. If such resources are not enough to pay benefits at a level specified by law (see Benefit Payments Guaranteed by the PBGC, below), the plan must apply to the PBGC for financial assistance. The PBGC, by law, will loan the plan the amount necessary to pay benefits at the guaranteed level. Reduced benefits may be restored if the plan’s financial condition improves.

A plan that becomes insolvent must provide prompt notification of the insolvency to participants and beneficiaries, contributing employers, labor unions representing participants, and PBGC. In addition, participants and beneficiaries also must receive information regarding whether, and how, their benefits will be reduced or affected as a result of the insolvency, including loss of a lump sum option. This information will be provided for each year the plan is insolvent.

Benefit Payments Guaranteed by the PBGC The maximum benefit that the PBGC guarantees is set by law. Only vested benefits are guaranteed. Specifically, the PBGC guarantees a monthly benefit payment equal to 100 percent of the first $11 of the Plan’s monthly benefit accrual rate, plus 75 percent of the next $33 of the accrual rate, times each year of credited service. The PBGC’s maximum guarantee,

therefore, is $35.75 per month times a participant’s years of credited service.

Example 1: If a participant with 10 years of credited service has an accrued monthly benefit of $500, the accrual rate for purposes of determining the PBGC guarantee would be determined by dividing the monthly benefit by the participant’s years of service ($500/10), which equals $50. The guaranteed amount for a $50 monthly accrual rate is equal to the sum of $11 plus $24.75 (.75 x $33), or $35.75. Thus, the participant’s guaranteed monthly benefit is $357.50 ($35.75 x 10).

Example 2: If the participant in Example 1 has an accrued monthly benefit of $200, the accrual rate for purposes of determining the guarantee would be $20 (or $200/10). The guaranteed amount for a $20 monthly accrual rate is equal to the sum of $11 plus $6.75 (.75 x $9), or $17.75. Thus, the participant’s guaranteed monthly benefit would be $177.50 ($17.75 x 10).

In calculating a person’s monthly payment, the PBGC will disregard any benefit increases that were made under the plan within 60 months before the earlier of the plan’s termination or insolvency. Similarly, the PBGC does not guarantee preretirement death benefits to a spouse or beneficiary (e.g., a qualified pre-retirement survivor annuity) if the participant dies after the plan terminates, benefits above the normal retirement benefit, disability benefits not in pay status, or non-pension benefits, such as health insurance, life insurance, death benefits, vacation pay, or severance pay.

Where to Get More Information For more information about this notice, you may contact the Fund Office at 330 West 42nd Street, New York, NY 10036, or call (646) 473-8666. For more information about the PBGC and multiemployer benefit guarantees, go to PBGC's web site, www.pbgc.gov, or call PBGC toll-free at (800) 400-7242. (TTY/TDD users may call the Federal relay service toll free at (800) 877-8339 and ask to be connected to (800) 400-7242.)

Winter 2006-2007 EMPLOYER NEWS 7

SUPPORTING THE NEXT GENERATION OF HEALTHCARE WORKERS: 1199SEIU MEMBERS CAN APPLY NOW FOR FAMILY PROGRAMS

Nursing Scholarships Help Address the Shortage The Funds are working to address one of the healthcare industry’s highest priorities – the ongoing nursing shortage. To help create a new pool of qualified nurses, the 1199SEIU Next Generation RN Scholarship program offers support to children of members in the clinical phase of a nursing program. To ensure academic success, students receive financial support through a Benefit Fund scholarship, and a free N-CLEX nurselicensing review course through the Training and Employment Funds.

Applications are available now and must be submitted by the third week of March, 2007, for the following academic year. For more information, call (646) 473-6920.

Scholarship and Camp Opportunities Available Now for Children of 1199SEIU Members It’s registration time for 1199SEIU families to apply for academic scholarships and summer camp slots.

Last year, more than 200 Greater New York college students received financial support through the Joseph Tauber Scholarship Program, and 52 Greater New York children aged 9 to 15 attended overnight summer camps through the Anne Shore Camp Program.

For more information on the Joseph Tauber Scholarship Program, call (646) 473-8999. For information on the Anne Shore Camp Program, call (646) 473-6925.

6 EMPLOYER NEWS Winter 2006-2007

Last year, more than 200 Greater New York college students received financial support through the Joseph Tauber Scholarship Program, and 52 Greater New York children attended overnight summer camps through the Anne Shore Camp Program.

T h e G r e a t e r N e w Yo r k E d u c a t i o n F u n d :

Providing the Training and Support Workers and Nursing Homes Need If your nursing home employees aren’t already taking advantage of the Greater New York Education Fund’s cost-effective training and educational programs, there are many opportunities available. A joint partnership between the Union and 233 contributing employers, the Greater New York Education Fund is a resource that ensures nursing homes and nursing home workers have the support and skills they need to provide the highest quality care. And in addition to low-cost training, the Education Fund also provides facilities with grant-funded training programs designed specifically for nursing home staff, including gerontology, customer service, palliative care, basic life support, emergency readiness, wound care, CNA review and more. These programs also include reimbursement for staff replacement so that nursing homes aren’t left short-staffed while workers are in training.

Through the Fund, 1199SEIU nursing home workers can take advantage of: •

One-on-one registration, counseling, and assessment

•

Preparatory classes and programs including basic education, GED, college, English as a Second Language and Citizenship courses

•

College tuition assistance and college programs in health care fields for workers looking to build new skills and upgrade to new positions.

For more information on accessing the 1199SEIU Greater New York Education Fund’s programs, contact Jose Matta at (212) 494-0534.

1199SEIU members can access onsite training near where they live or work at these Training Sites: Manhattan - Main Office 330 West 42nd Street - 2nd Fl. New York, NY 10036 (212) 643-9340 Brooklyn 25 Elm Place Brooklyn, NY 11201 (718) 797-2109 Bronx 2501 Grand Concourse & Fordham Road - 3rd Fl. Bronx, NY 10458 (718) 562-3667 Staten Island 790 Port Richmond Avenue Staten Island, NY 10302 (718) 448-7482 Long Island 50 Charles Lindbergh Blvd, 6th Fl. Uniondale, NY 11553 (516) 465-4201 White Plains 99 Church Street - 4th Fl. White Plains, NY 10601 (914) 993-6607 Albany 155 Washington Avenue Albany, NY 12210 (518) 434-1301 New Jersey 555 Route 1 South - 3rd Fl. Iselin, NJ 08830 (866) 927-1199 New Jersey 134 Evergreen Place - 9th Fl. East Orange, NJ 07018 (973) 677-3355 Winter 2006-2007 EMPLOYER NEWS 3

Are Your New Employees Receiving Their Health Benefits?

Even if you are reporting wages and paying contributions for new employees in 1199SEIU bargaining units, they are not eligible for health benefits until they enroll in the Greater New York Benefit Fund.

You can help the Benefit Fund make sure these new hires are receiving the coverage that your contributions pay for.

If you are submitting wage reports electronically, the Fund already has the information we need to contact these members and help them enroll. If you are not submitting electronically, you can ensure that new hires in 1199SEIU bargaining units are receiving their health benefits by submitting a “new hire” report along with your monthly wage report. The report should list each new employee’s name, social security number, date of hire, date of birth, and home address and phone. Our staff will follow up with each member.

You should also remind your new hires to fill out an Enrollment Form, if they haven’t already.

Forms are available online at www.1199nbf.org and from your Outreach Coordinator.

4 EMPLOYER NEWS Winter 2006-2007

Record Number of Members Register for Child Care Benefits

Employers, Community and Business Leaders Help Child Care Gala Meet Fundraising Goal

During the two-month fall registration process, Child Care Fund staff interviewed and registered a record number of 1199SEIU children for programs beginning in 2007, an estimated increase of 7%.

Affordable child care is just one of the many benefits the Child Care Fund offers 1199SEIU parents and their children. The Fund also provides educational, recreational and special needs programs, learning centers, professional development training and summer day and sleepaway camps, cultural arts programs, workshops and resource and referral services, with the goal of giving the next generation and their parents the support they need to succeed at school and in the workplace.

For more information about the Child Care Fund’s programs, call (212) 564-2220 or visit www.1199gnyccf.org.

In June 2007, the Child Care Subsidy/TANF Grant, which has provided over $22 million to help lowincome 1199SEIU parents and communities access affordable and quality child care, will end. The loss of this funding will leave many low-income 1199SEIU and other parents without dependable, affordable child care.

To make sure that these parents have access to the services they need, the Child Care Fund, through the non-profit Child Care Corporation, sponsored the first annual “Care For Kids” awards gala and fundraiser on December 5. The gala celebrated the Fund’s 15 years of service to working families and raised money to continue programs for lowincome parents.

While the final total is not yet available, pledges and contributions suggest that the event was successful in meeting its fundraising goals, largely due to the healthcare industry, business and

community leaders who have shown their support for the Fund’s programs. Michelle Miller Morial, CBS Senior News Correspondent and former First Lady of New Orleans, served as Mistress of Ceremonies. Vernon Hill, Founder, President, and CEO of Commerce Bank, chaired the event, and 1199SEIU President Dennis Rivera and League of Voluntary Hospitals and Homes of NY President Bruce McIver served as Honorary Co-Chairs.

In addition to raising dollars for affordable child care programs, the event honored three individuals who have dedicated themselves to educating and advocating for children with the first annual “Care For Kids” award. The recipients of the inaugural awards are: Geoffrey Canada, Founding President of the Harlem Children’s Zone and author; Linda Dunham, Chairman of the Board of Trustees of Ronald McDonald House of Charities; and Maria Elena Girone, President and CEO, Puerto Rican Family Institute.

Winter 2006-2007 EMPLOYER NEWS 5

Are Your New Employees Receiving Their Health Benefits?

Even if you are reporting wages and paying contributions for new employees in 1199SEIU bargaining units, they are not eligible for health benefits until they enroll in the Greater New York Benefit Fund.

You can help the Benefit Fund make sure these new hires are receiving the coverage that your contributions pay for.

If you are submitting wage reports electronically, the Fund already has the information we need to contact these members and help them enroll. If you are not submitting electronically, you can ensure that new hires in 1199SEIU bargaining units are receiving their health benefits by submitting a “new hire” report along with your monthly wage report. The report should list each new employee’s name, social security number, date of hire, date of birth, and home address and phone. Our staff will follow up with each member.

You should also remind your new hires to fill out an Enrollment Form, if they haven’t already.

Forms are available online at www.1199nbf.org and from your Outreach Coordinator.

4 EMPLOYER NEWS Winter 2006-2007

Record Number of Members Register for Child Care Benefits

Employers, Community and Business Leaders Help Child Care Gala Meet Fundraising Goal

During the two-month fall registration process, Child Care Fund staff interviewed and registered a record number of 1199SEIU children for programs beginning in 2007, an estimated increase of 7%.

Affordable child care is just one of the many benefits the Child Care Fund offers 1199SEIU parents and their children. The Fund also provides educational, recreational and special needs programs, learning centers, professional development training and summer day and sleepaway camps, cultural arts programs, workshops and resource and referral services, with the goal of giving the next generation and their parents the support they need to succeed at school and in the workplace.

For more information about the Child Care Fund’s programs, call (212) 564-2220 or visit www.1199gnyccf.org.

In June 2007, the Child Care Subsidy/TANF Grant, which has provided over $22 million to help lowincome 1199SEIU parents and communities access affordable and quality child care, will end. The loss of this funding will leave many low-income 1199SEIU and other parents without dependable, affordable child care.

To make sure that these parents have access to the services they need, the Child Care Fund, through the non-profit Child Care Corporation, sponsored the first annual “Care For Kids” awards gala and fundraiser on December 5. The gala celebrated the Fund’s 15 years of service to working families and raised money to continue programs for lowincome parents.

While the final total is not yet available, pledges and contributions suggest that the event was successful in meeting its fundraising goals, largely due to the healthcare industry, business and

community leaders who have shown their support for the Fund’s programs. Michelle Miller Morial, CBS Senior News Correspondent and former First Lady of New Orleans, served as Mistress of Ceremonies. Vernon Hill, Founder, President, and CEO of Commerce Bank, chaired the event, and 1199SEIU President Dennis Rivera and League of Voluntary Hospitals and Homes of NY President Bruce McIver served as Honorary Co-Chairs.

In addition to raising dollars for affordable child care programs, the event honored three individuals who have dedicated themselves to educating and advocating for children with the first annual “Care For Kids” award. The recipients of the inaugural awards are: Geoffrey Canada, Founding President of the Harlem Children’s Zone and author; Linda Dunham, Chairman of the Board of Trustees of Ronald McDonald House of Charities; and Maria Elena Girone, President and CEO, Puerto Rican Family Institute.

Winter 2006-2007 EMPLOYER NEWS 5

SUPPORTING THE NEXT GENERATION OF HEALTHCARE WORKERS: 1199SEIU MEMBERS CAN APPLY NOW FOR FAMILY PROGRAMS

Nursing Scholarships Help Address the Shortage The Funds are working to address one of the healthcare industry’s highest priorities – the ongoing nursing shortage. To help create a new pool of qualified nurses, the 1199SEIU Next Generation RN Scholarship program offers support to children of members in the clinical phase of a nursing program. To ensure academic success, students receive financial support through a Benefit Fund scholarship, and a free N-CLEX nurselicensing review course through the Training and Employment Funds.

Applications are available now and must be submitted by the third week of March, 2007, for the following academic year. For more information, call (646) 473-6920.

Scholarship and Camp Opportunities Available Now for Children of 1199SEIU Members It’s registration time for 1199SEIU families to apply for academic scholarships and summer camp slots.

Last year, more than 200 Greater New York college students received financial support through the Joseph Tauber Scholarship Program, and 52 Greater New York children aged 9 to 15 attended overnight summer camps through the Anne Shore Camp Program.

For more information on the Joseph Tauber Scholarship Program, call (646) 473-8999. For information on the Anne Shore Camp Program, call (646) 473-6925.

6 EMPLOYER NEWS Winter 2006-2007

Last year, more than 200 Greater New York college students received financial support through the Joseph Tauber Scholarship Program, and 52 Greater New York children attended overnight summer camps through the Anne Shore Camp Program.

T h e G r e a t e r N e w Yo r k E d u c a t i o n F u n d :

Providing the Training and Support Workers and Nursing Homes Need If your nursing home employees aren’t already taking advantage of the Greater New York Education Fund’s cost-effective training and educational programs, there are many opportunities available. A joint partnership between the Union and 233 contributing employers, the Greater New York Education Fund is a resource that ensures nursing homes and nursing home workers have the support and skills they need to provide the highest quality care. And in addition to low-cost training, the Education Fund also provides facilities with grant-funded training programs designed specifically for nursing home staff, including gerontology, customer service, palliative care, basic life support, emergency readiness, wound care, CNA review and more. These programs also include reimbursement for staff replacement so that nursing homes aren’t left short-staffed while workers are in training.

Through the Fund, 1199SEIU nursing home workers can take advantage of: •

One-on-one registration, counseling, and assessment

•

Preparatory classes and programs including basic education, GED, college, English as a Second Language and Citizenship courses

•

College tuition assistance and college programs in health care fields for workers looking to build new skills and upgrade to new positions.

For more information on accessing the 1199SEIU Greater New York Education Fund’s programs, contact Jose Matta at (212) 494-0534.

1199SEIU members can access onsite training near where they live or work at these Training Sites: Manhattan - Main Office 330 West 42nd Street - 2nd Fl. New York, NY 10036 (212) 643-9340 Brooklyn 25 Elm Place Brooklyn, NY 11201 (718) 797-2109 Bronx 2501 Grand Concourse & Fordham Road - 3rd Fl. Bronx, NY 10458 (718) 562-3667 Staten Island 790 Port Richmond Avenue Staten Island, NY 10302 (718) 448-7482 Long Island 50 Charles Lindbergh Blvd, 6th Fl. Uniondale, NY 11553 (516) 465-4201 White Plains 99 Church Street - 4th Fl. White Plains, NY 10601 (914) 993-6607 Albany 155 Washington Avenue Albany, NY 12210 (518) 434-1301 New Jersey 555 Route 1 South - 3rd Fl. Iselin, NJ 08830 (866) 927-1199 New Jersey 134 Evergreen Place - 9th Fl. East Orange, NJ 07018 (973) 677-3355 Winter 2006-2007 EMPLOYER NEWS 3

LETTER FROM THE EXECUTIVE DIRECTORS We’re all aware of the challenges facing the healthcare industry. In the wake of the Berger Commission’s recommendations for the restructuring

Benefit Fund’s Protecting Our Health Program Reaches More Than 10,000 Members

and closing of nursing homes and hospitals, we know that facilities are making extra efforts to use their resources as effectively as possible. The Family of Funds is no exception.

In this edition, you’ll read about how the Funds are streamlining common administrative functions across the Benefit and Pension, Training and Employment and

Throughout the fall, more than 10,000 1199SEIU members took part in the Benefit Fund’s Protecting Our Health meetings, nutritional workshops and health fairs. These events are teaching 1199SEIU members to adopt healthier lifestyles through diet, exercise, ongoing relationships with their doctors, and regular preventive screenings and will hopefully go a long way toward reducing healthcare costs associated with treating chronic conditions.

Child Care Funds to provide more services more efficiently to

Due to popular

1199SEIU members and employers.

demand, more Protecting Our Health

You’ll also read about the valuable programs that the Greater New York Education Fund is offering to

programs are being

nursing homes and nursing home workers, how the

scheduled for January

Child Care Fund is supporting 1199SEIU families, and

and later dates.

programs 1199SEIU parents can take advantage of now for the coming year.

We’re all in the business of caring. By giving nursing home workers the support they need, we’re ultimately improving the level of patient care together.

Sincerely,

Mitra Behroozi Executive Director Benefit and Pension Funds

Deborah King Vivian Fox Executive Director Executive Director Training and Employment Child Care Funds Funds

2 EMPLOYER NEWS Winter 2006-2007

For more information on Protecting Our Health, speak to your Outreach Coordinator or contact the Outreach Department at (646) 473-6930.

Annual Funding Notice for the 1199SEIU Greater New York Pension Fund Introduction This notice, which federal law requires all multiemployer plans to send annually, includes important information about the funding level of the 1199SEIU Greater New York Pension Fund, EIN 13-6601940, PN 001 (Plan). This notice also includes information about rules governing 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, 2005 and ending December 31, 2005 (Plan Year).

Plan’s Funding Level The Plan’s “funded current liability percentage” for the Plan Year was 61.8%. In general, the higher the percentage, the better funded the plan.

The funded current liability percentage, however, is not indicative of how well a plan will be funded in the future or if it terminates. Whether this percentage will increase or decrease over time depends on a number of factors, including how the plan’s investments perform, what assumptions the plan makes about rates of return, whether employer contributions to the fund increase or decline, and whether benefits payments from the fund increase or decline.

Plan’s Financial Information The market value of the Plan’s assets as of January 1, 2006 was $459,008,417.

The total amount of benefit payments for the Plan Year was $29,603,276. The ratio of assets to benefit payments is 15.5.

This ratio suggests that the Plan’s assets could provide for approximately 15.5 years of benefit payments in annual amounts equal to what was paid out in the Plan Year. However, the ratio does not take into account future changes in total benefit payments or plan assets.

Rules Governing Insolvent Plans Federal law has a number of special rules that apply to financially troubled multiemployer plans. Under so-called “plan reorganization rules,” a plan with adverse financial experience may need to increase required contributions and may, under certain circumstances, reduce benefits that are not eligible for the

PBGC’s guarantee (generally, benefits that have been in effect for less than 60 months). If a plan is in reorganization status, it must provide notification that the plan is in reorganization status and that, if contributions are not increased, accrued benefits under the plan may be reduced or an excise tax may be imposed (or both). The law requires the plan to furnish this notification to each contributing employer and the labor organization.

Despite the special plan reorganization rules, a plan in reorganization nevertheless could become insolvent. A plan is insolvent for a plan year if its available financial resources are not sufficient to pay benefits when due for the plan year.

An insolvent plan must reduce benefit payments to the highest level that can be paid from the plan’s available financial resources. If such resources are not enough to pay benefits at a level specified by law (see Benefit Payments Guaranteed by the PBGC, below), the plan must apply to the PBGC for financial assistance. The PBGC, by law, will loan the plan the amount necessary to pay benefits at the guaranteed level. Reduced benefits may be restored if the plan’s financial condition improves.

A plan that becomes insolvent must provide prompt notification of the insolvency to participants and beneficiaries, contributing employers, labor unions representing participants, and PBGC. In addition, participants and beneficiaries also must receive information regarding whether, and how, their benefits will be reduced or affected as a result of the insolvency, including loss of a lump sum option. This information will be provided for each year the plan is insolvent.

Benefit Payments Guaranteed by the PBGC The maximum benefit that the PBGC guarantees is set by law. Only vested benefits are guaranteed. Specifically, the PBGC guarantees a monthly benefit payment equal to 100 percent of the first $11 of the Plan’s monthly benefit accrual rate, plus 75 percent of the next $33 of the accrual rate, times each year of credited service. The PBGC’s maximum guarantee,

therefore, is $35.75 per month times a participant’s years of credited service.

Example 1: If a participant with 10 years of credited service has an accrued monthly benefit of $500, the accrual rate for purposes of determining the PBGC guarantee would be determined by dividing the monthly benefit by the participant’s years of service ($500/10), which equals $50. The guaranteed amount for a $50 monthly accrual rate is equal to the sum of $11 plus $24.75 (.75 x $33), or $35.75. Thus, the participant’s guaranteed monthly benefit is $357.50 ($35.75 x 10).

Example 2: If the participant in Example 1 has an accrued monthly benefit of $200, the accrual rate for purposes of determining the guarantee would be $20 (or $200/10). The guaranteed amount for a $20 monthly accrual rate is equal to the sum of $11 plus $6.75 (.75 x $9), or $17.75. Thus, the participant’s guaranteed monthly benefit would be $177.50 ($17.75 x 10).

In calculating a person’s monthly payment, the PBGC will disregard any benefit increases that were made under the plan within 60 months before the earlier of the plan’s termination or insolvency. Similarly, the PBGC does not guarantee preretirement death benefits to a spouse or beneficiary (e.g., a qualified pre-retirement survivor annuity) if the participant dies after the plan terminates, benefits above the normal retirement benefit, disability benefits not in pay status, or non-pension benefits, such as health insurance, life insurance, death benefits, vacation pay, or severance pay.

Where to Get More Information For more information about this notice, you may contact the Fund Office at 330 West 42nd Street, New York, NY 10036, or call (646) 473-8666. For more information about the PBGC and multiemployer benefit guarantees, go to PBGC's web site, www.pbgc.gov, or call PBGC toll-free at (800) 400-7242. (TTY/TDD users may call the Federal relay service toll free at (800) 877-8339 and ask to be connected to (800) 400-7242.)

Winter 2006-2007 EMPLOYER NEWS 7

Winter 2006-2007

Cross Funds Administrative Initiative Enhances Efficiency and Provides Better Service to Members and Employers While the 1199SEIU Benefit and Pension, Training and Employment, and Child Care Funds all provide different benefits, they are provided to the very same members. Since the Funds use similar organizational functions to deliver these benefits, there is significant overlap in the Funds’ administrative work.

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

First Class U.S. Postage PAID New York, NY Permit No. 3700

That’s why the employer groups and the Union are supporting an “all Funds” approach that would streamline the Funds’ work, using the same systems to more effectively and efficiently deliver services to both members and employers. Together, the Family of Funds collectively administers 20 Funds that cover a range of needs across the industry, including hospitals, nursing homes and home care. Because the Funds work so closely together, it makes

sense to improve their operations by integrating administrative departments and eliminating duplication of work.

The Funds already share four common departments – Legal, Contracts and Collections, Communications, and Investments.

Together, the Family of Funds collectively administers 20 Funds that cover a range of needs across the industry, including hospitals, nursing homes and home care.

Through the fall, the Cross Funds Steering Committee – which includes Union and Management Trustees as well as the Executive Directors of the three umbrella Funds – examined ways to combine and manage common adminis-

trative functions. By the end of the year, the Funds will also share Accounting and Finance, Audit, Facilities, Fraud and Security, Human Resources, and Information Technology departments, dramatically improving the ways the Funds operate and provide services to members and employers.

IN THIS ISSUE . . .

Protecting Our Health Reaches More Than 10,000 Members . . . . . 2 GNY Education Funds Provides the Training and Support Workers and Nursing Homes Need . . . . . . . 3 Are Your New Employees Receiving Their Health Benefits? . . 4 Record Number of Members Register for Child Care Benefits . . . 4 Child Care Gala Meets Fundraising Goal . . . . . . . . . . . . . . 5 Nursing Scholarships Address the Shortage . . . . . . . . . . . . . . . . . 6 Scholarship and Camp Opportunities for Members’ Children . . . . . . . . . 6