TheBoardofGovernorsmetonOct.11-12todiscussbusinessimportanttostate employeesandretirees.
President’s Report
PresidentSidneyM.Sandycongratulatedreturningandnewdistrictchairpersons andwelcomedthemintotheSEANCfamily.Healsowelcomedhiscommittee chairpersonsforthe2013-2014totheBOG:Awards-PamHailey,BenevolenceRegeniaMelvin,Bylaws-JimmyDavis,EMPAC-WayneFish,InsuranceBoardof Trustees-DorannaAnderson,MemberDiscount-JanetBunch,Membership-Bill Spade,MemberStrength-HiawathaJones,PlanningCommittee-LindaRouseSutton, PolicyPlatform-DorisGreer,YouthCouncil-KimRoss,RetireeCouncil-Spillman Grice. SandypraisedtheDistrictChairpersontrainingthatprecededthemeeting andurgedallchairpersonstoutilizetheinformationcontainedinthenotebooksto settheirdistrictupforsuccess.
PresidentSandyalsorequestedthatdistrictchairpersonsworkwiththeirRegional Representativeswhenschedulingannualmeetingstoensurethattheyareon differenteveningstoallowofficerstoparticipateinthemeetings.
Executive Director’s Report
ExecutiveDirectorDanaCopereportedthathemetwithGovernorPatMcCroryto discussstateemployeemoraleandsalariesandbothagreedthatstateemployees areunderpaid.Coperequestedthatthegovernorconsiderfundingemployee compensationpriortootherappropriationsasisdoneinatraditionalbusiness.
SEANCishostingStateHealthPlanForumsstatewidetomakefolksawareofthe cost-shiftingassociatedwiththeConsumer-DrivenHealthPlanOptionandthe advantagesanddisadvantagesofeachoptionpriortomakingtheirhealthcare choicethismonth.
TwoSEANCBOGmemberswererecentlyappointedtopositionsimportantto SEANCmembers.CopecongratulatedDistrict65ChairpersonGloriaEvansonher appointmenttotheStateHumanResourcesCommissionbyGov.McCroryandPast
PresidentCharlesJohnsonwasappointedtotheStateHealthPlanBoardofTrustees bySenateleaderPhilBerger.
Ethics Training
ChiefofStaff/GeneralCounsel/EthicsLiaisonTomHarrisprovidedEthicsTraining totheBOGandeachmemberattestedthattheyreceivedthetraining.
SEANC Policy for SEANC Districts’ Use of Websites and Social Media
SEANC’sEthicsCommitteeliaisonTomHarrisbroughtforwardamotiontothe BOG’sdistrictwebsitepolicypassedlastMaythatrequiredalldistrictwebsitestobe dismantledandfordistrictstousetheSEANCBulletinBoardinitsplace.
Theproposalgrandfatheredtwoknowndistrictwebsites(3,39)andanyother districtwebsitesthatmetthefollowingconditions:
Websitesthatcontainadisclaimer,termsofusepolicyandprivacypolicy approvedbytheSEANCCommunicationsDepartment,continuetobeactive andhavebeenupdatedduringthethree-monthperiodpriortoMay31,2013, andcontinuetobeupdatedatleastonceduringeachthree-monthperiod followingthatdate.
Identifying Our Super SEANC Members
MemberStrengthDirectorKevinLeCountpresentedaproposaltocreateaSEANC rewardsprogramandwillcomebacktotheBOGwithcostproposalinFebruary.
Demystifying the SPA-Know Your Rights!
SEANC’sStateHumanResourcesAct(knownastheSHRAandformerlytheSPA) expertTomHarrispresentedaTop10SHRArightsasaprimerfornewboard members.
1. Justcauserequiredfordisciplinarydismissals,demotionsandsuspensions (propertyright)
2. Coverageandexemptions;probation
3. Jobpostingandpriorities/preferences
4. Politicalactivitiespermitted;protectionfromrequiredsupport;limiton politicalhiring
5. Whistleblowerprotection
6. GrievanceRights
7. StateHumanResourcesCommissionmustcomplywiththeAdministrative ProceduresActinadoptingrules
8. Severancepayanddiscontinuedserviceallowance
9. Privacyofpersonnelfiles;grievancerighttoremoveinaccuratematerial
10.ProtectionforrequestedcommunicationwithGeneralAssemblyMember
Other
Lesser Rights
Include:
1. Equalemploymentopportunity
2. Compensationplan
3. Minimumleave
4. Workoptions
State Health Plan Forum
SEANCLobbyistChuckStoneprovidedabriefingonthedifferentoptionscurrently availableintheStateHealthPlanopenenrollmentwhichendsonOct.31.Stone recommendedthatstateemployeesandretireespurchasethebesthealthplanthat personscanafford.Foractivestateemployeesthebestplanavailableisthe EnhancedPPO80/20Plan.
All state employees were automatically enrolled in the PPO 70/30 for 2014 and you must take action in October if you wish to enroll in the Enhanced PPO 80/20 or other options.
StonecautionedmemberswhoareconsideringtheConsumer-DrivenHealthPlanas theirhealthoption.TheCDHPcost-shiftstomembersandmayrequireprepayment forservicesnecessitatingmembersavingsand/oravailablecredit.Stonealso informedmembersthatHealthReimbursementAccounts,associatedwiththeCDHP, arethelegalpropertyoftheStateHealthPlan,notplanmembersandbalancesdo notcarryoverfromyeartoyear.
StateemployeeswhowishtoselecttheEnhancedPPO80/20canreducethe premiumifyoudothreeactivities:attestthatyoudonotsmoke($20monthly credit),nameaprimarycarephysician($15monthlycredit)andcompleteahealth assessmentonlineoronthetelephone($15monthlycredit)leavingemployeeswith a$13.56monthlypremiumforthebestplanavailabletoactivemembers.
Medicare-eligible retirees
AllmemberswereautomaticallyenrolledinaGroupMedicareAdvantageBasePlan offeredbyeitherHumanaorUnitedHealthcare.Stoneurgedallmembersto:
Makealistofyourhealthcareproviderstodetermineiftheyarein-network fortheMedicareAdvantagePlanwhereyouwereautomaticallyenrolledin duringAugust.
Makealistofyourmedications(name,dosagelevel,frequency,genericor brand)andcompareittothedrugformularyforyouMedicareAdvantage Planproviderandthecompetitor.
ThenmakeyourdecisiononwhichMedicareAdvantagePlanorthePPO70/30best meetsyourneed.
Formoreinformation,pleaseaskSEANCmemberstoattendanupcomingSEANC StateHealthPlanForum.
Special Guest-Richard
Warr, Ph.D. Professor
of Finance
NorthCarolinaStateUniversityProfessorandFinanceDepartmentChairmanatthe PooleSchoolofManagementmadeapresentationonalternativeinvestmentsin stateretirementsystemsasbackgroundfornewboardmembersonSenateBill558, whichSEANCopposedinthissessionoftheGeneralAssemblyduetotherisk involvedforstateemployeesandretirees.StateTreasurerJanetCowellhadasked theGeneralAssemblytoexpandherauthoritytoinvest40percentofthestate employees’$81billionretirementfundinalternatives.DuetoSEANC’sstrong opposition,onlya1percentincreasefrom34to35percentwasapprovedand signedintolawbyGov.McCrory.
Warrexplainedalternativeassetsinclude:
Private equity-Directinvestmentsinprivatecompanies=highfees,highrisk. ProfessorWarrlikenedprivateequitytobuyingarun-downhouse,fixingit upandtryingtoflipit.
Venture capital-Directinvestmentinyounggrowingcompanies=highfees, veryhighrisk
Hedge Funds-Afundthattakesinvestor’smoneyandhasfulldiscretionon howtoinvestthemoneyorbasicallyamutualfundforrichpeople.Hedge fundshaveveryhighfeesandarepopularwithWallStreetduetothefee structure.
PriortothepassageofSenateBill558thestatepaidinvestmentfeesof$384million. The1onepercentincreasecouldmeanatotalof$545millioninfeesforWallStreet. ThatiswhyWarrexplained,“WallStreetcelebratedthisbill,itwaspaydayforWall Street.”
ProfessorWarrarguedthatatraditionalportfolioofindexedstocksandbondswill outperformmostalternativeportfoliosinthelongrunbecauseofthefees.Ifthe statedidnothingbuta50/50splitbetweenstocksandbonds,thesavingsinfees wouldbemorethan$290-$450millionperyearthatcouldstayinthestate retirementsystemandbeusedforbenefitenhancements.
WarrbelievedthatiftheTreasurer’spositionwasappointed,ratherthanelected, personswouldseelessofapushtoalternatives.Althoughthefundmanagersare barredfrommakingpoliticalcontributionstocandidates,theirlawfirmsthatare bigcampaigncontributorsarenot.Warralsoarguedagainstthesolefiduciary systemwhichallowsonepersontomakealloftheinvestmentdecisionsinan$81 billionplan.