2008 finalreportermarch08

THE

Publication of the State Employees Association of North Carolina • March 2008 • Vol. 26 No. 2 • Circulation 55,000

SEANC Files Lawsuit to Obtain Public Records from Treasurer’s Office SEANC Public Records Request Timeline

2007 Feb. 24

PHOTO BY Erica baldwin

Dear SEANC members, Last year in the aftermath of a Forbes magazine article featuring state Treasurer Richard Moore, “Pensions, Pols, Payola,” insinuating a “pay-to-play” system in our more than $75 billion pension fund, SEANC members were understandably troubled and seeking answers about the Forbes article. SEANC members wanted to make sure that there was no monkey business going on with their retirement security and needed to know if these disturbing reports were true or not.

So we sent a letter to Treasurer Moore on March 1, 2007, requesting documents pertaining to the Forbes article—in fact several letters went back and forth between our offices and we received some documents, but not what we needed to make the determination for ourselves Dana Cope speaks to the Retirement Systems Board if anything was out of the ordinary with the of Trustees. retirement system. The treasurer’s letters were often contradictory noting the Department of the State Treasurer’s viewpoint that they believed our request was fulfilled, yet the treasurer’s office continued to ask us again and again to identify specific documents to complete our request (meaning to me that the request remained incomplete).

In our final letter dated Jan. 24, 2008, we reiterated our very detailed request or asked for “convincing evidence” that Moore’s office acted responsibly and reasonably as required by the public records law by Jan. 29 or we would sue.

In January we were called by a representative of the treasurer’s office who informed us that the public information officer who would fulfill the request was ill. No more records were provided Jan. 29, 30, 31 or Feb. 1.

That is why it is with a somber heart that after 11 months, nine letter exchanges and nearly 1,000 pages of documents later, SEANC filed a lawsuit on Feb. 1 to obtain the public records requested— a move voted on unanimously by your Executive Committee.

Examples of information we are looking for include all documents from the Office of the State Treasurer and the law firm retained regarding the dispute with Forbes over the magazine’s request for information, documents and correspondence provided to Forbes and a variety of other information.

SEANC has a long history advocating for state employees and retirees—no matter who is in office. This suit marks the second time in recent years that SEANC has pursued legal action on behalf of the state’s working families. In 2001 SEANC and its members sued Gov. Mike Easley when he diverted $130 million of the state’s pension fund to balance the state budget. On Jan. 15, 2008, the SEANC members’ suit was heard by the North Carolina Court of Appeals. Several of you will also remember our actions in the Bailey lawsuit which resulted in thousands of retirees maintaining their tax-free pension checks.

This lawsuit isn’t about politics; it’s about following the law, it’s about people and it’s personal to state employees and retirees. After 11 months, the records we’re requesting should be readily available. Today we still can’t make a determination about media reports insinuating “pay-to-play” politics—our partially-filled public records request doesn’t allow us to draw conclusions. It’s full of missing links and I, on your behalf, will continue to be your advocate for open government and your retirement security.

The lawsuit and our related documents are posted on the SEANC Web site, www.seanc.org. I’ll keep you updated as events progress.

F orbes magazine article, “Pensions, Pols, Payola,” faxed to SEANC highlighting state Treasurer Richard Moore’s practice of hiring money managers who invest state pension money and are also campaign contributors.

March 1 SEANC sends letter to Moore

requesting public records related to Forbes article.

March 27

T reasurer provides SEANC 700 pages of documents.

March-Oct.

SEANC staff reviews documents; key information missing.

Oct. 16 SEANC sends Moore public records request reiterating March 1 request and seeks additional items.

Dec. 6 SEANC reminds Moore of its records requests, noting association will consider legal action if records are not received by Dec. 31.

Dec. 21

T reasurer’s office sends SEANC letter asking SEANC to narrow and prioritize request.

2008 Jan. 7 Treasurer’s office sends SEANC letter asking SEANC to note items missing from March request.

Jan. 15

EANC sends letter to Moore identifying S missing records again repeating SEANC will consider legal action if not received

by Jan 18.

Jan. 18 Treasurer’s office sends SEANC

190 pages of documents, including incomplete correspondence between the treasurer’s office and Forbes.

Jan. 24 SEANC sends final letter to treasurer’s

office requesting unfulfilled records or “convincing evidence” that Moore’s office acted as required by public records law by Jan. 29 or they face a lawsuit.

Jan. 29 Neither records nor “convincing

evidence” are provided by deadline.

Feb. 1 SEANC Executive Director

SEANC files lawsuit.

2 POLITICAL ACTION

Former SEANC President Tosses Hat into the Ring for NC Senate

By Toni Davis Chuck Stone, former SEANC president, retired O’Berry Center employee and health care advocate, announced that he will seek the Democratic nomination for the North Carolina State Senate Stone District 5. State Sen. John Kerr (D-Wayne) is retiring from the seat representing Greene County and parts of Wayne and Pitt counties.

“As a health care advocate and former president of SEANC, I have been concerned for years that state policies have failed to adequately address the concerns of working families. These are the people who play by the rules of the game, but can’t afford health insurance and health care

for their children and families,” Stone said in his announcement.

Stone’s name may be familiar to SEANC members as the named plaintiff in the lawsuit, Stone v. State of North Carolina, against Gov. Mike Easley to repay $130 million in pension funds diverted from the retirement system in 2001. For an update on the lawsuit, see “SEANC Members’ Retirement Lawsuit Heard

by Court of Appeals” on page 4.

As of press time, Stone faces five candidates in the May 6 Democratic primary. Stone currently serves as director of North Carolinians for Affordable Health Care, a program designed to promote quality, affordable health care for all of North Carolina’s citizens, and is a frequent contributor to The Reporter. He and his wife, Marie Stone, reside in Goldsboro.

Statewide Membership Chairman Running for General Assembly Sidney Sandy, SEANC’s Membership Committee chairman and former first vice president and treasurer, added another title to his name on Jan. 10 ­— candidate for the North Sandy Carolina House of Representatives. Sandy is running for the District 68 seat currently held by Rep. Curtis Blackwood (R-Union) in the May 6 Republican primary to bring more effective representation to Union County.

“I will be more effective for the citizens of Union County. My experience as a statewide officer in the State Employees Association and

my community involvement in Union County as chairman of the Public Works Advisory Committee qualify me to be able to represent the needs of our county,” said Sandy.

The North Carolina Center for Public Policy Research ranked Rep. Blackwood 116 out of 120 in 2005 and 119 out of 120 in 2003. The center is an independent, nonprofit organization dedicated to the goals of a better-informed public and more effective, accountable and responsive government.

Sandy’s announcement was covered in The Charlotte Observer and his hometown paper, Union County’s Enquirer-Journal, in January. Sandy and his wife, Dale Sandy, reside in Indian Trail.

Former SEANC Officer Makes Bid for NC House Jimmy Garner, a former SEANC treasurer and second vice president, will challenge incumbent Rep. Leo Daughtry (R-Johnston) for the North Carolina House of Representatives District 26 seat. Garner is Garner in his second term as a Pine Level town commissioner and his first term as mayor pro-tem.

Garner said he will be an advocate for the working families of Johnston County, one of the fastest growing counties in the state. He has 18 years of experience with the Department of Correction in Smithfield.

“Keeping our community safe has always been a top priority for me,” Garner said. “My fresh perspective will offer our district a new voice in Raleigh.”

Garner, a Democrat, will face Daughtry in November’s general election. Garner, his wife, Gina Garner, and their two children, Trevor and Mackenzie, reside in Pine Level.

Look for more candidate announcements and EMPAC endorsements in upcoming issues of The Short Report and The Reporter. tdavis@seanc.org or 800-222-2758

Save the date!!!

Annual Lois Forrester Memorial Golf Tournament Thursday, May 22 Boone Golf Club, Boone, NC Proceeds will benefit District 3’s Scholarship and Community Service Activities Fund.

For more information contact Amy Winebarger at winebargerab@appstate.edu

3 HEALTH CARE

SEANC Helps NC Alliance for Health Secure $50,000 Grant

By Viola Alexander, SEANC Communications/PR intern The North Carolina Alliance for Health (NCAH) received a $50,000 grant from the Robert Wood Johnson Foundation to decrease tobacco use and exposure and begin developing a strong policy for the prevention of obesity.

“SEANC’s statewide membership and size played a key role in securing the grant,” said Director of North Carolinians for Affordable Health Care Chuck Stone, SEANC’s representative to the NCAH. SEANC is the largest organization in the alliance, which seeks to improve the health of North Carolinians by advocating policies that promote wellness and reduce the impact of tobacco use and obesity. In 2007 SEANC joined with

NCAH to change state policies to prohibit smoking in state government facilities and allow local governments the same option.

The planning grant, which extends through June 30, will help NCAH develop long and short-term policy goals and gather necessary obesity prevention data. Based on the alliance’s work, an additional $150,000 may be granted for program implementation between July 1 and Dec. 31, 2009.

To learn more about the cost of tobacco and obesity in North Carolina, see the box at right.

Cost of NC Tobacco Use and Obesity $549 million Annual cost of NC Medicaid enrollees’ tobacco use

$513 per person $545 million Annual cost of NC Medicaid enrollees’ obesity

$864 per person $185 million Annual cost of obesity to the State Health Plan

$395 per person $1 billion Annual cost of tobacco and obesity in North Carolina and counting Source: Report by Dr. Meg Molly, NC Prevention Partners, Jan. 25, 2006. Data supplied by the Centers for Disease Control and the North Carolina State Health Plan.

Questions? Contact Chuck Stone at cstone@seanc.org or 800-222-2758.

State Health Plan Holds Annual Enrollment Members Must Switch to PPOs as Indemnity Plan Phases Out

By Linda Forsberg of District 40, State Health Plan Network Operations Manager Annual enrollment for the North Carolina State Health Plan will take place in early spring 2008.

Please keep in mind that the Indemnity Plan is no longer being offered as an option through the State Health Plan beginning July 1. The State Health Plan is pleased Forsberg to offer you a choice of three expanded Preferred Provider Organization

(PPO) plans as some of you transition from the Indemnity Plan, which will end on June 30, 2008.

Many state employees have already switched to a PPO plan and most were able to keep the same physicians. In fact, the Blue OptionsSM PPO plans have a very extensive network with participating providers in all 100 counties. Of the providers currently seen

by Indemnity Plan members, at least 95 percent of the physicians are members of the Blue OptionsSM network.

The expanded PPO benefits will help ensure a smooth transition for members moving from the

Indemnity Plan to a PPO plan. Now PPO members may receive unlimited covered physical, occupational and speech therapy visits. The chiropractic visit limit has also increased to 30 visits per benefit year. In addition the new PPOs provide unlimited covered outpatient visits and inpatient days for the treatment of mental health and chemical dependency, although prior authorization is required after the 26th outpatient visit.

Visit www.shpnc.org for updates. You may also call PPO Customer Services at 888-234-2416.

Linda.Forsberg@shpnc.org or 919-881-2300

State Health Plan Indemnity Plan Members – Switch Now!

By Mary Adelaide Bell

Who: Members of the State Health Plan participating in the Indemnity Plan option.

What: Switch to one of three expanded Preferred Provider Organization (PPO) plans before the Indemnity Plan ends on June 30.

When: Retirees’ enrollment forms are due to the retirement system by March 28. It is recommended that retirees have their forms in the mail by March 21.

Active employees with the Indemnity Plan should pick a PPO during annual enrollment in early spring.

Those who do not turn in an enrollment form will be automatically enrolled in the PPO Standard, an 80/20 plan most similar to the Indemnity Plan.

To make the change: PPO enrollment forms will be mailed to you in March. If you have any questions, please call PPO Customer Services at 888-234-2416.

For more info: Read the article on this page titled “State Health Plan Holds Annual Enrollment” and visit the State Health Plan’s Web site, www.shpnc.org.

Questions? Contact Chuck Stone at cstone@seanc.org or 800-222-2758.

4 RETIREMENT

SEANC Members’ Retirement Lawsuit Heard by Court of Appeals

By Erica Baldwin RALEIGH – SEANC members continued their quest to protect state employees’ retirement security in the North Carolina Court of Appeals on Jan. 15.

When Gov. Mike Easley diverted $130 million of the state’s pension fund to balance the state budget in 2001, 14 SEANC members filed a lawsuit, Stone v.

State of North Carolina, against the governor charging the act was an illegal use of pension funds and to stop future officials from using state employees’ retirement money to make up for budget shortfalls.

The lawsuit also seeks interest owed on the diverted funds. The payment of the initial $130 million was completed this fiscal year.

In Session Law 2001-513 Section 21, the issue of interest was addressed stating, “it is the intent of the General Assembly that the payment be made with interest at rates determined by the General Assembly to be consistent with the performance and earnings of the System.”

“It’s my intent to keep returning to the courthouse to secure that interest.”

– Lead plaintiff Chuck Stone

SEANC’s North Carolinians for Affordable Health Care.

In addition to Stone, SEANC Executive Director Dana Cope and Chief of Staff/General Counsel Tom Harris were present during the Jan. 15 proceedings.

SEANC has long supported this lawsuit and has been instrumental in its success. Earlier victories include a judge’s rulings that the governor violated the North Carolina and federal constitutions by using the funds for purposes other than payment of benefits and system administration.

“It’s my intent to keep returning to the courthouse to secure that interest,” said Chuck Stone of Goldsboro, lead plaintiff in the suit and director of

SEANC will continue to be a watchdog for state employees’ retirement security. The Court of Appeals is expected to issue a decision on the Jan. 15 arguments within the next few months. Look for updates on the SEANC Web site and publications. ebaldwin@seanc.org or 800-222-2758

Retirement System Announces Open Enrollment for Contributory Death Benefit SEANC Retiree Director Mitch Leonard and the North Carolina Retirement Systems staff contributed to this report.

The North Carolina Retirement Systems will hold open enrollment for the Contributory Death Benefit from Feb. 1-May 31. The open enrollment will give retired members of the Teachers’ and State Employees’ Retirement System, the Local Governmental Employees’ Retirement System, the Consolidated Judicial Retirement System and the Legislative Retirement System another window of opportunity to sign up for the optional benefit.

The Contributory Death Benefit provides a onetime death benefit of $10,000 payable to the deceased’s spouse or legal representative. Typically retirees have 60 days from the date of retirement to elect coverage under the Contributory Death Benefit. During open enrollment retirees will have an opportunity to elect this coverage.

Legislation to hold an open enrollment for the Contributory Death Benefit was initiated by Sen. Bob Atwater (D-Chatham) last session. Sen. Atwater, a retired state employee, introduced Senate Bill 720 and worked with Retirement Systems staff, SEANC lobbyists and the House Pensions and Retirement Committee to approve legislation creating the open enrollment period.

House Bill 779, introduced by Rep. Larry Bell (D-Sampson), increased the one-time death benefit from $9,000 to $10,000. This legislation was also supported by SEANC. Under the open enrollment benefit provisions, contribution rates for those who elect coverage now will be based on the age of the member at the time of election and will include an 11.1 percent

increase over the established rate for retirees who elected coverage at retirement.

Forms were mailed in January to retirees who have not previously elected coverage. To obtain coverage under the Contributory Death Benefit, members must return the completed form to the Retirement Systems Division no later than May 31. mleonard@seanc.org or 800-222-2758

The Reporter Toni Davis, Editor-in-Chief Erica Baldwin, Managing Editor Carri Derrick, Associate Editor/Advertising Manager Mary Adelaide Bell, Associate Editor Viola Alexander, Intern STATE EMPLOYEES ASSOCIATION of NORTH CAROLINA P.0. Drawer 27727 • Raleigh, NC 27611 1621 Midtown Place • Raleigh, NC 27609 Telephone 919-833-6436; 800-222-2758 www.seanc.org

(Please use Post Office Drawer for mailing purposes.)

ADVERTISING POLICY SEANC

accepts advertising material from companies and per-

SEANC members. Acceptance SEANC approval or endorsement or any representation that the message, product or service is as represented by the advertiser. SEANC accepts no sons seeking to communicate with

of this advertising does not indicate

Who: Retirees who have not previously elected Contributory Death Benefit coverage.

What: A one-time death benefit of $10,000 payable to the deceased’s spouse or legal representative.

How to enroll: Forms were mailed in January to retirees without coverage.

Complete and return forms to the Retirement Systems Division of the Department of the State Treasurer by the deadline.

Deadline: May 31 Questions: Call the Retirement Systems Member Services at 877-733-4191 or 919-733-4191 (Raleigh) from 8 a.m.-5:30 p.m. Monday-Friday.

responsibility and shall not be liable for any use of or reliance on any such information, product or service.

SEANC is a private

entity and is under no obligation to carry advertisements of any nature, political or otherwise, that may be viewed as contrary to the interests of the association and its membership.

THE REPORTER USPS 009-852 (ISSN 1069 2142) is published in the months of March, May, August and November for $3 per year, per member, by the State Employees Association of North Carolina, Inc., P.O. Drawer 27727, Raleigh, NC 27611-7727.

Periodicals postage paid at Raleigh, N.C. and additional offices. POSTMASTER: Send address changes to: THE REPORTER, P.O. Drawer 27727, Raleigh, NC 27611-7727.

5 col u mn s

Executive Director by

Dana Cope

Wanted: State Treasurer with . . .

As it nears time for EMPAC to make endorsements in statewide races, I’ve put together my own wish list for the next state treasurer. As the sole trustee of our more than $75 billion retirement system, this office and the investment decisions that he or she will make will impact more than 700,000 North Carolinians, including every retired state employee. So here goes.

Cope

Wanted: State treasurer with proven experience and success in the finance sector working with public employees.

Candidate would consider support for legislative reform to share investment decisions with a board of trustees, prioritize North Carolina over the national financial scene, provide public records requests in a timely manner and prohibit staff from partaking in catamaran rides, spa dates, golf, lavish hotels and meals paid for by private investment firms who are conducting business (past, present or future) with the treasurer’s office.

Candidates refusing campaign contributions from investment managers who may benefit from state contracts preferred.

State employees have the chance to ask the candidates running for state treasurer whether or not they support these principles important to state employees. I know that all of us and EMPAC eagerly await their answers. dcope@seanc.org or 800-222-2758

4 o

4 Quotes to Note o

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“SEANC’s mission is to protect state employees and that’s what we’re doing with this lawsuit.” District 42 member Shirley Bell in The Charlotte Observer article “State records dispute heads for court” on Feb. 2.

“Let’s get this straight. Criticizing a bridge project is being a good citizen while requesting public documents is politics?” NC Spin’s Feb. 7 commentary on state Treasurer Richard Moore’s critique of the Neuse River bridge in New Bern, a project supported by Lt. Gov. and gubernatorial candidate Beverly Perdue.

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6 COLUMNS

President’s Message by

Linda Rouse Sutton J

Collective Bargaining and Affiliation. . .Not a Passing Fad When I think about our mission to protect and enhance the benefits of present, future and retired state employees, I am proud of our acSutton complishments.

We have taken bold steps to fulfill that goal. This year our Board of Governors, your elected leaders from each of the 53 SEANC districts, set out to look for some bold and new avenues to win for state employees and retirees— namely collective bargaining and affiliation.

If we are fulfilling our mission, looking ahead to the future and protecting SEANC as a whole, we must think outside the box. We must realize we are in an ever-changing, high-speed era as we have never seen before, and I realize that we must be on the right track.

How do I know this? Every time I read an article or e-mail from big business, I see a headline about SEANC or a union organizing like “SEANC Makes Move to Increase Influence: Votes to Allow Union Affiliation” or “Unions Take Aim at North Carolina on All Fronts.” You might wonder why businesses, which don’t represent state employees, care about unions. The big CEOs aren’t shy expressing their viewpoint. One recent business publication read, “If one group gains collective bargaining rights, how long would it be before others do and unions take over state and municipal governments in our state?” Now, I don’t know about you, but when I read the words “take over” I know what they really mean— state employees will have real negotiating power for our pay and benefits and then private sector employees will ask for the same.

I think back to when the computer age began. Now look where we are.

Not only are computers on most everyone’s desk, but now you see people with BlackBerries and Treos in hand.

Who would have thought just five years ago this would be true? Many of us said, “No way would we learn how

to operate a computer, besides it’s only a passing fad.” Then we began to realize that to be viable employees and to function in everyday life, we must be computer literate to some degree. We often think what is going on around the nation and the rest of the world doesn’t affect us, but we are wrong. Because of this transient and technological world in which we live, we must leave our comfort zones to become aware of the needs and rights of other state employees. Forty-eight other states in the nation allow public employee collective bargaining, but North Carolina, along with Virginia, isn’t one of them.

You see, the world is changing and will continue to do so no matter what. We must continue to be leaders, to make hard decisions and to stand up and defend them with excitement and vigor. I have heard it said before, “What the mind can conceive and believe, it can and will achieve.”

SEANC is at a crossroads. We just have to decide what we really want and then make it happen. Is it collective bargaining? Is it union affiliation?

It is ours for the taking if we have the courage and commitment to be true leaders. Are you willing to take the leap of faith as a leader? Are you willing to believe we can and will make SEANC the most powerful organization in the nation? Is your commitment to SEANC strong enough?

Think about it--divided we fall and united we LEAD! lsutton@seanc.org or 252-559-0291

SEANC Scholarship Golf Tournament June 14-15 Southern Pines Look for more information in the May Reporter.

7 PUBLIC POLICY

SEANC Readies as State’s Political Climate Changes

By Erica Baldwin This article originally ran in Morganton’s newspaper The News Herald on Dec. 5, 2007.

If the ban on collective bargaining is lifted, the door would be open for negotiations to take place at a bargaining table between representatives of state employees, called a bargaining agent, and state government representatives.

SEANC, an advocacy group with 55,000 members which represents state employees and retirees, is poising itself for such a change. In September, 900 SEANC members, who serve as the association’s convention delegates, voted to allow affiliation with a union, which was prohibited in the original bylaws established in 1984. This direction change is significant due to the fact that if collective bargaining is allowed, SEANC and other organizations will compete to become employees’ collective bargaining agent. SEANC’s potential alignment with a national union may strengthen its ability to serve as that agent. Public employees are prohibited by a different law from striking, thus eliminating that fear if SEANC affiliates with a union.

“Though the word ‘union’ has not been popular in the South, it may be our best hope to continue quality public services and provide for the state’s working families,” said SEANC Executive Director Dana Cope.

Because federal funding makes up nearly onethird of North Carolina’s budget, SEANC’s affiliation with a national union could help represent the state on a national level and secure much-need-

PHOTO BY MARY ADELAIDE BELL

Though the North Carolina General Assembly session is mostly dormant for the winter, state employees — including Burke County’s 3,149 members of the State Employees Association of North Carolina — are wondering what the 2008 session will mean for them. In addition to determining state employees’ pay and benefits, the legislature may consider House Bill 1583 that will remove the ban on collective bargaining — changing the way benefits are decided.

Collective Bargaining Committee Readies for Education Effort Members of the Collective Bargaining Committee met in Raleigh on Jan. 17 to discuss strategies to educate SEANC members about collective bargaining and how the governor’s Executive Order 105 affects SEANC. Pictured front row, left to right, are North Carolinians for Affordable Health Care Director Chuck Stone, Maureen McMullen of District 37, Dodie Collins of District 2, Flint Benson of District 22, President Linda Rouse Sutton, District 18 Chairwoman Pam Locklear, Chief of Staff/General Counsel Tom Harris, Eastern Region Member Action Coordinator Benny Brigman and District 67 Chairman Bruce Jones, Eastern Region representative to the Executive Committee. Pictured back row, left to right, are Kim Glover of District 38, Carol Ann Huneycutt of District 45, Eddie Gunn of District 9, Membership Committee Chairman and District 11 member Sidney Sandy, Past President and committee chairman Cliff Brown, District 27 Chairwoman Brenda Hooker and Steve Hutton of District 25.

ed funding. Additionally, a union like the Service Employees International Union (SEIU), whom SEANC has been in a partnership with since 2004, has been actively involved in the national health care fight, especially for children. If SEIU succeeds, $1.4 billion would be available for North Carolina to provide more children with health insurance, including uninsured children of state employees.

Another factor contributing to SEANC’s direction change is Executive Order 105, issued by Gov. Mike Easley in August 2006, which permits “reasonable access” to state facilities for employees’ associations with at least 2,000 members in the state, 500 of whom are state employees. The order

also invites representatives of each eligible association, including SEANC, to meet annually with the governor’s representatives prior to each General Assembly session to discuss important issues such as pay and benefits. This access seems to be a precursor to collective bargaining.

As state employees faithfully care for the sick, keep the state’s roads and communities safe and give aid in natural disasters, SEANC will continue to ensure their pay, health care and retirement benefits remain a priority in the state budget no matter the process. ebaldwin@seanc.org or 800-222-2758

SEANC Member Sheds Light on UE 150’s Claims SEANC District 6 Chairman Wayne Freeman, a physician’s assistant, took action after reading a flier that UE Local 150, a union competing against SEANC to represent state employees, distributed near the entrance of Broughton Hospital in Morganton. Freeman distributed a letter to his co-workers contrasting SEANC and UE 150. An excerpt of that letter is as follows: “Don’t let their advertising fool you. There is no large presence of UE 150 workers at other state hospitals. They have infiltrated some municipal groups in the Raleigh area but as yet have no foothold among state employees.

SEANC is a good organization which does its best to represent your interests with the state.

There are changes in the works to hopefully further

efforts to get you the pay and benefits you deserve.

If staff starts looking toward another organization to lead them, they will get led nowhere. UE 150 doesn’t have any representation at the state level, no lobbyists and no real input into what you can get from the state. What they will do is cause division among our people which will slow down and interrupt the progress that SEANC is trying to make on your behalf!

If any of you think you are not being represented at the state level, please come talk with us. If you are not SEANC members, come join us. There is power in numbers and we are [more than] 54,000 members strong. Adding to that number will increase our strength and clout with the state.” wfreeman8009@earthlink.net

Mark Your Calendar MAT Lobby Day is June 24

8 COLUMNS

Counselor’s Comments

By Tom Harris SEANC Chief of Staff/General Counsel

EEOC Rule Threatens Retiree Health Benefits In late December the U.S. Equal Employment Opportunity Commission (EEOC) adopted a controversial regulation that permits employers, such as Harris the state of North Carolina, to reduce or eliminate health benefits for retirees who are Medicareeligible while continuing to provide full benefits to other retirees. The new rule is of obvious concern not only to Medicare-eligible state retirees, but also to other state employees and retirees who anticipate living to 65, the age of Medicare eligibility.

While SEANC is not aware of any current plans by the North Carolina General Assembly to end Medicareeligible retiree health benefits, this new development heightens SEANC’s awareness of the need to remain vigilant in watching for and opposing any future legislation with that purpose.

Our cause will be aided by gaining an understanding of the background and rationale leading the EEOC’s decision to adopt the new regulation.

Background of Rule For years many private and public employers, including the state of North Carolina, have “coordinated” their retiree health benefits with Medicare, resulting in Medicare-eligible retirees getting either no employer-paid health benefits at all or less benefits than those received by younger retirees.

In 2000, however, the U.S. Court of Appeals for the Third Circuit held that the Age Discrimination in Employment Act (ADEA) requires health care benefits received by Medicare-eligible retirees be the same, or cost the employer the same, as the health benefits received by the younger retirees. The court’s ruling was then adopted by the EEOC as its enforcement position.

Many labor and employer groups complained to the EEOC that its new position was contrary to current practice and that if the position was not

changed, they would comply by reducing or eliminating the retiree health benefits they currently provide. In fact that is what the defendant, Erie County, Pennsylvania, did in the aftermath of the 2000 lawsuit — the county’s plan now gives older retirees the same benefit, but requires younger retirees to pay more for the health benefits that offer fewer choices. In response to these complaints, the EEOC proposed the new rule under a section of the ADEA that allows it to create reasonable exemptions from any or all provisions of the ADEA when “necessary and proper in the public interest.”

AARP Challenges Rule The AARP filed a lawsuit challenging the EEOC’s authority to adopt a rule that is clearly contrary to the requirements of the ADEA prohibiting employment discrimination on the basis of age. The AARP also argues that the new regulation is contrary to public policy because it allows employers to eliminate health benefits for many Medicare-eligible retirees who currently get their primary health benefits from their employer and use Medicare as a back up. Last year, however, the Third Circuit Court of Appeals upheld the rule as legal and authorized the EEOC to issue it. The AARP is seeking review by the U.S. Supreme Court, but in the meantime the rule is in effect.

The Bottom Line Whether or not the EEOC rule is ultimately upheld, the ADEA does not prevent an employer from eliminating or reducing retiree health benefits. Thus, SEANC will need to remain alert in its defense of those benefits. Not only can SEANC be a legislative watchdog, but in appropriate circumstances, it also can seek to have the courts uphold retiree contract rights to health benefits, much like SEANC did in supporting the Bailey lawsuit to enforce contract rights to retirement benefits. tharris@seanc.org or 800-222-2758

9 member action

Apply for a SEANC Scholarship Today!

Are you heading back to school? Are your children college bound? Then take advantage of the SEANC scholarship program! Dependent children and spouses of SEANC members and SEANC members working full time are eligible to apply. Scholarships are awarded in three categories: financial need, merit or member only.

Obtain your application from the SEANC Web site at www.seanc.org or from your high school guidance counselor or financial aid office.

The deadline to apply is April 15.

Need more information? Contact the SEANC Central Office at 919-833-6436 or 800-222-2758.

Judge Doug McCullough SEANC Member Since 2001 Up For Re-Election in 2008 I Need & Welcome the Support of My Fellow SEANC Members.

Go To www.re-electjudgemccullough.com

To Contact Me & Volunteer To Help.

Paid for by the Committee to Re-Elect Judge McCullough.

10 member action

District 5, 6 and 7 Participate in JIRDC Christmas Parade Districts 5, 6 and 7 participated in the J. Iverson Riddle Developmental Center’s Christmas Parade on Nov. 29, 2007, in Morganton. Pictured, left to right, are Johnny Burnette of District 5, Gwyn Wilkes of District 7, Tony Smith, first vice president and District 5 member, Sherry Vines of District 6, Landry, granddaughter of Smith, Henry Belada, Ronnie Fox and Norma Randall, all of District 7. Not pictured is Burnette’s granddaughter Reva.

Photo by Carri Derrick

Contributed photo

Compiled by Carri Derrick and Viola Alexander

District 43 Continues Legacy of Giving

Photo by Orie Henry, Jr.

District 43 continued its long tradition of holiday giving by sponsoring an Angel Tree to provide Christmas presents to children in need. District 43 members, from left, Debra Dunston, chairwoman, Willie Dunn, Felicia Knight and Insurance Board of Trustees Chairwoman Cheryl Moon pose in front of the district-sponsored Angel Tree on Dec. 21, 2007, at the Division of Motor Vehicles headquarters in Raleigh.

District 59 Gives Back to Community

Photo by Casey Ferrell, News of Orange County

Contributed photo

District 59 delivered 45 Christmas stockings filled with goodies to elderly residents at the Poplar Street Apartments in Goldsboro on Dec. 25, 2007. This is the third year that District 59 has worked with the Body of Christ Ministries on this project. The district was assisted by Boy Scout Troop 14 of Saulston. Pictured front row, left to right, are Miriam Henry of the Body of Christ Ministries and Joseph and Terence Sutton of Boy Scout Troop 14. Pictured back row, left to right, are District 59 Membership Chairwoman Carolyn Sutton and Body of Christ Ministries members Ernestine Sherard, Paul Sherard, Jr., Marquis Pullen and Donald Lewis.

District 65 Makes Christmas Brighter for Local Children

District 19 Provides Holiday Cheer for Hospitalized Children District 19 played Santa for patients at the University of North Carolina Children’s Hospital in Chapel Hill.

District members presented the gifts to two grateful nurses from UNC Hospital at their Dec. 18, 2007, meeting at the Mayflower Restaurant in Hillsborough. Pictured, left to right, are District 19 members Angela Lyght, Ruth Lewter, UNC nurses Brandy Pearson and Meghan Kelton, District 19 members Phyllis Fearrington, Martha Fowler, Jonathan Stephenson and Marie Tate.

District 65 made Christmas a little brighter for two siblings that the district sponsored through the Greenville Community Center. District members and ECU Brody School of Medicine employees contributed to the project by donating $250 and items off the children’s wish list including warm clothes, stuffed animals, jewelry, toiletries and a portable DVD player. District 65 Treasurer Debbie Austin, left, and Volunteer Action Co-Chairwoman Lynn Tuthill pose with the items at the ECU Brody School of Medicine in Greenville last December.

11

Contributed photo

photo by mary adelaide bell

member action

Bell Honored by DOC District 65 Delivers Christmas Cheer

Photo by Hiawatha Jones

Photo by Carri Derrick

District 65 members made miniature Christmas trees that were donated to residents of the Greenfield Nursing Home in Greenville. The trees were used as decorations for the district’s annual Christmas social held on Dec. 4, 2007, at the ECU Brody School of Medicine. More than 100 people attended the event. Pictured, left to right, are Liz Nelson, Linda Nelson, Susan Palumbo, Evelyn Hinnant, Debbie Austin, Tammy Heller, Lynn Tuthill, Alicia Simpson, Lori Hines and Gina Baugher on Nov. 27, 2007.

Michael T. W. Bell, Scholarship Foundation Board chairman and member of District 61, was named the North Carolina Division of Prisons’ 2007-2008 Warden/ Superintendent of the Year on Jan. 8. Additionally, he will be nominated by the Division of Prisons for the North American Association of Wardens and Superintendents’ Warden of the Year. Bell has been an administrator at Pender Correctional Institution in Burgaw since July 1998 and has 35 years of correctional experience.

District 37 Raises Money for Raleigh Rescue Mission

District 60 Helps Fire Victim

District 37 held a fundraiser breakfast at the Transportation Building in Raleigh on Dec. 13, 2007, to raise money for the Raleigh Rescue Mission. DOT Chief Deputy Secretary Daniel DeVane raffled off donated items during the event that raised $2,250 for the mission. Raleigh Rescue Mission Executive Director Lynn Daniell, far left, accepts a check from District 37 member Karen Kimbrell, center, and District 37 Chairman David Smith after the event.

Photo by Jeff Whitner

Photos by Lisa Burwell

District 60 helped a neighbor in need, Carman Benjamin, after she and her family lost all of their possessions in a house fire. The district responded once they learned of the incident and provided a Wal-Mart gift card to assist the family in purchasing needed items. Benjamin is an employee at the O’Berry Neuro-Medical Treament Center. Pictured, left to right, are District 60 member Jeff Whitner, Benjamin and District 60 Secretary Anita King, presenting the gift card at the O’Berry Center in Goldsboro on Nov. 20, 2007.

District 66 Holds Scholarship Raffle District 60 Holds Relay for Life Kick Off District 60 held a Relay for Life Promotional Kick Off at the Wayne County Fair on Nov. 4, 2007. Pictured, left to right, are District 60 members Bernice Simmons, Lisa Ruggery, Ellen Brubeck and Team Captain Carolyn Davis.

District 66 held its annual scholarship raffle at the Caswell Center in Kinston. The district raffled two $500 cash prizes and raised more than $900 for its scholarship fund. Congratulations to winners Billy Taylor, pictured left with District 66 Retiree Chairwoman Pat Hill, on Dec. 20, 2007, at the Badrock House at the Caswell Center.

LaSandra Houston, right photo, poses with her check at the Badrock House on Dec. 21, 2007.

12 FEATURED MEMBER DISCOUNT VENDOR

“The custodians of Sampson County schools, along with SEANC, fought hard and won to keep us custodians instead of [hiring] out-of-state contractors. Custodians do more than just clean. We are the eyes and ears of parents during school hours. In many cases, custodians are the first responders when students are sick, hurt or when there may be trouble.”

Jackie Tripp of District 61, Sampson County Schools

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