The Board of Governors met on July 19 to discuss business important to state employees and retirees. Treasurer’s Report SEANC Finance Director Rex Foster reported that SEANC’s finances are doing well with total annual budget receipts at 74 percent and 67 percent disbursements. President’s Report President Sidney M. Sandy congratulated district chairpersons on finishing their annual meetings. Sandy attended 15 annual meetings and encouraged folks to think outside the box and appoint new, younger members as district officers to help train the next generation of SEANC leaders. President Sandy also reminded district chairpersons to inform their incoming counterparts that he would like to swear-in all district chairpersons at the Saturday night banquet at convention on Sept. 7. Executive Director’s Report Executive Director Dana Cope reported positive changes in the Senate version of the State Personnel Act Modernization bill. The Senate substitute bill addresses patronage and due process concerns that SEANC had with the original bill. This version provides more, not less, state protections. SEANC continues to fight Senate Bill 558, a bill requested by State Treasurer Janet Cowell in an attempt to expand her power to invest 35 percent of the retirement system in risky alternative investments such as hedge funds and real estate deals. Senate Bill 558 has been altered from its original form which would have allowed the treasurer to gamble with 40 percent of the retirement system in an $81 billion retirement fund on alternative investments. Cowell is only using 20 percent of the fund for alternative investments currently. Such investments usually come with high fees that cancel out any gains made by them. SEANC’s Ardis Watkins testified before the House Finance Committee telling its members, “We’re rolling the dice literally like it’s Vegas,” 1

N.C. State Business Management Professor Richard Warr supports SEANC’s concerns. Warr told the committee that if they passed the bill, money managers on Wall Street would have a champagne toast in honor of their vote, since they stand to gain more than $300 million in fees from the change. The bill is awaiting a vote on the House floor. Cope has met with the Senate leadership and discussed this bill with the governor to share SEANC’s concerns. Convention Report SEANC Convention and Meeting Planner Alicia Miller provided a briefing on the 30th Annual Convention, which will be held on Sept. 5-7 at the Sheraton Four Seasons in Greensboro. The theme for this year’s convention is “Building a Better Tomorrow.” Thursday and Saturday night dinners are optional and tickets are available now through Aug. 9 on the website. The community service project will be the SECU Family House at UNC Hospitals. All items and checks need to be dropped off at the Community Service booth by 1:30 p.m. on Thursday, Sept. 5. All SEANC members are invited to submit photos of departed members for the Remembrance Presentation at convention. More information about the convention can be found at seanc.org/convention or by calling Miller at the SEANC Central Office. There will be trainings prior to the start of convention. Beginning at 9 a.m. on Sept. 5 there will be District Treasurer and Scholarship Board trainings along with retirement and State Health Plan workshops. The retirement and health plan workshops will be held at 9 and 10 a.m. for 45-minutes each while the other trainings are a full two hours. Awards Committee Chairwoman Gene Mills announced that the forms to submit nominations for awards are online. The deadline for submissions has been extended to July 26. Benevolence Committee Doranna Anderson announced that the Benevolence Committee has sent out 151 cards this year to the families of deceased members. She also informed the BOG that the Remembrance form is now online, and the deadline for submissions is Aug. 16. Bylaws Committee Chairman Jimmy Davis reported that 11 bylaws amendments were considered by the committee on July 18. Two were approved and will be forwarded to convention delegates for a vote. One amendment would change the name of the Youth Council to the Emerging Leaders Council, raising the age eligibility of the council from 40 to 45 and changing the method of selecting members from appointments to election by SEANC convention delegates. The other bylaws amendment would make the Retiree Council Chairperson a convention delegate.

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EMPAC Chairman Wayne Fish announced that EMPAC met on July 13 and discussed reorganization proposals. He also reported on the progress of the EMPAC sweepstakes. To date, EMPAC has received 1,295 sweepstakes entries and $14,350 in contributions from the contest. Insurance Board of Trustees Chairwoman Pam Hailey announced that the committee will send a full membership mailing in September featuring all SEANC Insurance Programs. Hailey brought forward a 1-year contract renewal for MetLife Dental, beginning Jan. 1, 2014. The renewal contract contains an average 2-percent increase on the low/network plan and average 5 percent increase on the high option plan with an increase in the annual maximum raised to $5,000. Likewise, the orthodontic lifetime benefit, contained in the high-option plan, for each family member up to age 19 rose to $5,000. Currently, the annual maximum limit is $3,000 and orthodontic lifetime benefit is $1,500. The BOG approved the renewal. Member Discount Chairwoman Janet Bunch reported that 116 new discount partners have been recruited since Feb. 2013. The committee will recognize the top three recruiters at convention and the deadline to recruit new discount partners for the contest is July 31. Theme park tickets will continue to be sold at all branches of the State Employees Credit Union until Sept. 30. Member Strength Chairwoman Kim Martin reported the findings of a survey the committee had conducted. The main result was that SEANC must get younger members involved. The next meeting is Aug. 17. Membership Chairman Spillman Grice reported that membership recruiters have been busy. The cutoff date for recruiting this year is Aug. 22 at close of business. This is the last day to count district members toward convention delegate total. The membership incentive program continues through Aug. 19: Repeat recruiters get $20 for every five new members and first-time recruiters get $15 for three new members. Districts 38 and 39 are matching the membership incentive currently in place. The top recruiting region thus far this year is the Eastern Region who is up 348 more members since the last convention. Policy Platform Chairwoman Doris Greer announced that six policy platform submissions were considered by the committee this Wednesday. Four will go to convention and two 3

were voted down by the committee. The committee deleted two objectives that were up for deletion because they had already been achieved. Planning The Planning Committee presented a $5.1 million budget to the BOG for consideration and a vote. The budget is $7,400 less than last year and will fund SEANC operations for Fiscal Year 2013-2014. The SEANC budget and the Insurance budget were unanimously approved by the BOG. Retiree Council Ross Hailey made the Retiree Council report on behalf of Chairman Bob Hopper. SEANC Lobbyist Chuck Stone will deliver two workshops at the convention on Medicare Advantage on Sept. 5 at 9 and 10 a.m. SEANC Lobbyist Mitch Leonard will deliver two retirement workshops during the same time periods so that members may attend each session. Spillman Grice has been elected to the Alliances of Retirees of N.C. The council has an opening in each region and currently there is no candidate running in the Piedmont Region. Twenty-eight retiree workshops were held around the state. Scholarship Foundation Chairman George Thiessen announced that Dollars = Diplomas. The elections at the convention will feature five regional vacancies. The Don Jones Memorial Golf Tournament will be Aug. 9 at Buies Creek. Each district can sponsor a team and/or hole. Cost is $55 per player or $220 per team for four people. Youth Council Chairwoman Felicia Chiambiro announced that the council will assist in an upcoming New Hanover and Brunswick County membership drive. The Youth Council will host two convention activities including a speed networking event and a luncheon for members under 40. The chairwoman congratulated several YC members who took on leadership roles in their districts this year. Votes PASSED-A motion to fund the SEANC and insurance budgets for Fiscal Year 20132014. Unanimous. PASSED-A motion to extend the MetLife Dental contract for one year. The new plan has a $5,000 orthodontic benefit per family member.

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