TheBoardofGovernorsmetonOct.9-10todiscussbusinessimportanttostate employeesandretirees.
President’s Report
PresidentWayneFishwelcomedreturningandnewdistrictchairpersonsintothe SEANCfamily.Heinformedtheboardthatthisyear’sfocuswouldfocusonbig pictureprioritiesimportanttostateemployeesandretirees pay,healthcare,job protectionsandretirement.
Fishwelcomedthe2 014-2015committeechairpersonstotheBOG:Awards-PamHailey,Bylaws-Jimmy Davis,EMPAC-TonySmith,InsuranceBoardofTrustees-DorannaAnderson, MemberDiscount-JanetBunch,Membership-BillSpade,MemberStrength-Hiawatha Jones,PlanningCommittee-LindaRouseSutton,PolicyPlatform-DorisGreer,Youth Council-EricaSimmonsandRetireeCouncil-SpillmanGrice.
FishchargedtheYouthCounciltofocusonadvocacyactivitiesintheGeneral Assembly.Fishannouncedanewcommittee,theGrowthandExpansionCommittee, ledbyGloriaUpperman.TheG&ECwillfocusonresearchingandoutreachtonew SEANCmemberssuchasuniversityathletesandlocalgovernmentemployees.
Executive Director’s Report
SEANCExecutiveDirectorDanaCopeintroducedalltheSEANCstafftotheboard andannouncedthatlobbyistsMitchLeonardandChuckStoneareretiringattheend oftheyear.ThegoodnewsforSEANCisthatLeonardandStonewillstayonas consultantsforatleastthenext12months.Leonard,whohasworkedforthe associationfor38years,toldtheboard,“Ithasbeenthetruepassionofmylifeto workhereatSEANC.”
CopereportedthatSEANCisclosetofinalizingaffiliationnegotiationswithSEIU. Thepurposeofwhichistorecommitthenecessaryplanofactionandresourcesto
growSEANCtobecomeanevenstrongeradvocateforNorthCarolina’spublic employees
Central Office:Copeoutlinedastaffreorganizationincludinganamechangeand newdutiesfortheLegislativeAffairsDepartmentwhichhasbeenrenamed GovernmentRelations.TheGovernmentRelationsDepartmentwilltakeonpolitical activitiesstaffduties.KevinLeCountwillcontinuehisroleaspoliticalmanagerin GovernmentRelationsandwillalsobecomealobbyist.TheremainingMember StrengthDepartmentfunctionsandstaffhavemovedtoMemberAction.
CopealsoupdatedtheboardontheprogressoftheCentralOfficerenovation.(A previousboardsetasideareservetoinvestinthebuilding,propertyand landscaping.)Lastyear’sExecutiveCommitteeapprovedfixinganumberof repairs/renovationstotheCentralOffice,includinganewroof,HVAC,carpetand landscaping.
General Counsel Report
TomHarrispresentedarequestfrommemberstoassistwithattorneys’fees involvedintwodifferentlawsuits.ThesecasesarebroadandwillimpactallSEANC memberswhoaresubjecttotheStatePersonnelAct.BothlawsuitsinvolveSPA employeeswhowereswitchedtoat-willstatus:
1. ADepartmentofPublicSafetyemployee,JoeVincoli,isfightinghis termination,afterhisemploymentstatuswaschangedtomanagerial-exempt, despitethefactthatVincolididnotmanageanypeople.Thecaseispending beforeN.C.SuperiorCourt.Heischallengingthetakingofhispropertyrights (switchinghisemploymentstatus).
2. ThreeSEANCmemberswhoareDeputyCommissionersoftheIndustrial Commissionarefightingtheirswitchinemploymentstatusinfederalcourt. Thesemembershearunemploymentinsuranceappeals Nineofthe22 deputieshavefiledalawsuitandthreeareSEANCmembers.
TheBOGvotedtoassistinthelawsuits:$1,000forVincoliand$999eachforthe threeSEANCmembersinfederalcourt.Shouldtheseemployeeswin,itwillhelpall stateemployees.
Harrisclarifiedthatthefivedaysofbonusleavecannowbeusedinthesame mannerasvacationleaveandvacationleavedoesnothavetobeexhaustedfirst. Further,heurgedallmemberstouseupvacationtimefirst,becauseattheendof employmentmemberscanbepaidforbonusleaveinadditionto240hoursof unusedvacationtime.Iftheyusethebonusleaveinsteadofvacationtime,theywill losethatextrapayattheendofemployment.
Ethics Training
EthicsLiaisonTomHarrisprovidedEthicsTrainingtotheBOGandeachmember attestedthattheyreceivedthetraining.
Retirement
LobbyistMitchLeonardgaveapresentationonretirementlegislationfromthe2014 shortsession.Legislationpassedincludedprovisionsonanti-spikingand5-year vesting.Thebudgetincludeda1-percentCOLA.
LeonardalsoreviewedtheresultsofSEANC’sforensicauditofthestateretirement system.Theauditshowedpensionlossesofupto$6.8billionandskyrocketingfees topaidWallStreetandplacementagents.Italsoshowedthatthesystemhadnever beenaudited.SEANCwassuccessfulingettingtheGeneralAssemblytorequirea stateaudittobereportedby2016.
SEANCwasalsosuccessfulindefeatinganattemptbyStateTreasurerJanetCowell’s officetoenshrinesecrecyininvestments.Herbillwouldhavekeptdealsmadewith pensionfundssecretforawholegeneration.
TheboardwasshownthisreportfromWFMY2onSEANC’sfightfortransparency. Leonardthenpointedouttheproblemwiththetreasurer’sclaimsof16percent returnoninvestmentsinthelastyearandthefactthat“bestfunded”doesnotmean “best.”Thesystemiswellfundedprimarilybecauseofcontributionsfromstate employeesandrecentcontributionsfromtheGeneralAssembly.
State Health Plan Update
LobbyistChuckStonebriefedmembersontheStateHealthPlan.Formemberson theEnhanced80/20PlanortheConsumer-DirectedHealthPlan,Octoberisacritical monthforactiontoavoidpunitivewellnesssurcharges.Openenrollmentisgoingon now,andwhileyoudonothavetore-enrollinyourplan,youMUSTonceagain completetheso-calledwellnessactivitiesinordertoavoidthepunitivesurcharges thatwereputinplacelastyear.Thosewerenotaone-timedeal.Justbecauseyou completedthemlastyeardoesnotmeantheresultscarryovertothisyear.Theydo not.
Thosewellnessactivitiesinclude:
• Completingahealthassessment
• Attesting that you and your spouse (if applicable) do not smoke or are in a smokingcessationprogram
• Selectingaprimarycareproviderforyourselfandalldependents
ThenextopportunitytomakechangestohealthplancoveragewillbeJanuary2016. StoneurgedmemberswhodonotwishtochangeanythingtocalltheSHPtoverify theirenrollment.
TheSHPistheonlyplaninthestatethatnowprovidesappliedbehavioraltherapy forautism.Thismayenticesomeparentstotrytoworkforthestate Changesto optometrylawshavesomelookingforwaystosaveonglasses.Stonesaidwaysto
saveincludeSEANC’svisioninsuranceandpurchasesatwarehousestoreslike COSTCOorBJ’s.
StonealsospokeaboutrestrictionsbytheSHPoncertainkindsofdrugs,especially diabeticdrugs.Henotedthatin-networkhospitalsaretheresponsibleforpreadmissioncertification,whileout-of-networkhospitalsareresponsibilityof member.MembersinMedicareAdvantagePlansarenotaffectedbyin/out-ofnetworkdifferences–simplypaythecopay.
StonetoldtheBOGthatiftheyhaveorhearaboutpeoplehavingproblemswith claims–i.e.copaysweretoohighortherewasacodingproblem–tocalltheState HealthPlanat919-881-2300andinformthemyourclaimwasnotprocessed properlyandbesuretocallSEANC.“Wewillletthemknowtheirpeoplearenot complyingwiththeircontract,”Stonesaid.“Reviewthosebillscarefully.Trustbut verify.”
Automatic enrollment for retirees:“Ifplanningtoretire,sixmonthprioryouneedto startthinkingaboutyourSHPoptions,”Stonesaid.SHPoffershelp,butifyoudon’t pickaplan,youwillbeenrolledinaMedicareAdvantagePlanthatmaynotbeto youradvantage.
Retirees’ returning to work is another big issue with the SHP this year.“Ifyouasa retireegobacktoworkforthestateofN.C.andworkanaverageof30hoursor moreperweek,you’regoingtobeassignedtoaHighDeductibleHealthPlan,”Stone said.Heurgedtheboardto,iftheyknowanyretireeworkingonatemporarybasis forthestate,tomakesuretheiraverageisunder30hoursperweek.“Donotwork foranystateagencythatwantsyoutoworkmorethan29hoursaweek.Youcannot affordit,”Stonesaid.HenotedinparticularlythatthishitstheUNCsystemandthe publicschoolsystemsthehardest,includingsubstituteteachers.
TomHarrisclarifiedforpeoplealreadyworkingforthestate.Thestateissupposed toseeifrehireretireesworkanaverageof30hoursaweekoverthelastyear. “Whatyouwanttohaveisanagreementthatyouwillworklessthan30hoursa week,”Harrissaid.Harrisalsonotesthathisunderstandingisthiswouldapplyto Medicare-eligibleretirees.
StonespokeonACAtaxpenalties:2015willbefirsttimeunderACAthatpeople musthavehealthinsurancecoverage–onthemselvesandfamilymembers.Tax penaltieswillbefairlyminimalin2015butwillincreasein2016-18.
Stonenotesthatinmostcases,peopleeligiblefortheMedicareAdvantageplansare betteroffinthoseplansthantraditionalMedicareandthePPO70/30.
EMPAC Changes
KevinLeCountexplainedthenewEMPACAreaassignments,whichwillgointoeffect onJan.1,2015,asvotedonbythestatecommittee:
EMPAC Area SEANC Districts
A 1,2
B 3,8
C 5,6,7
D 4,9
E 11,12,13
F 10,18
G 16,17
H 20,24
J 19,25,27
K 21,26
L 36-45
M 22,23
N 61,62
P 58,59,60
Q 56,57
R 64,65
S 66,67,70
T 63,68,69
Convening Chairs
JimPressley
KathyHowell
TonySmith
BarbaraLeatherman
JeanMartin
LindaMoore
RonFields/AnneMarieBellamy
JohnGullo
GloriaUpperman
DorannaAnderson
MichaelRichardson
MikeKollock/StanleyDrewery
TanillaWilliams
EMPACChairmanTonySmithwillworkwithareasthatarecurrentlynotassigneda representative.Districtseachhavefourrepsontheareacommittee.Meetings shouldbeheldNov.5–Dec.31andtheabovechairpersonswillhavetobereelectediftheywishtocontinuetoserve.EMPACAreaChairpersonsareresponsible forreachingouttodistrictchairpersons.
Awards
ChairwomanPamHaileyreportedthatcommitteewillbemeetinginFebruaryand August.TheawardscommitteemembersarePatReighard,LindaMoore,Cathy Fields,GeorgeCurrieandDaisyStancill
EMPAC
GloriaUppermanurgedSEANCmemberstovoteforEMPAC-endorsedcandidateson Nov.4.
Expansion & Growth
GloriaUppermanreportedthatinadditiontoresearchandoutreachtonewSEANC members,thecommitteewillalsoworkwithexistingdistrictinfrastructuretoassist andleadthechargeofdistrictreorganizationassituationsarise.Thecommitteewill beresearchinglocalgovernmentagenciesandidentifyingthebestcountiesinN.C.to launchapilotprogram.
Insurance Board of Trustees
ChairwomanDorannaAndersontolddistrictstoaskSEANC’sDirectorofMember BenefitsBrendaHookerorInsuranceBoardofTrusteesmemberstocometodistrict meetingsandeventstopromoteSEANC’sinsuranceproducts.Therearetwo regionalrepresentativesforeachregionwhoarealsoavailabletoassistyouwhere youlive.
Member Strength
ChairwomanHiawathaJonesreportedthatthecommitteeisexcitedtobeworking withtheMemberActionTeamandwillbedevelopingaloyaltyprogramtopromote growth,developatwo-yearmemberstrengthguide,preparealistofretireesacross eachdistricttolobbyatthelegislatureandengagemembersofeachdistrict’s EMPACcommitteetolobbyatthelegislature.Jonesurgedmemberstohave district’smembersworkingthepollsforourEMPAC-endorsedcandidates.
Scholarship Foundation
ChairwomanShirleyBallardthankedSidneySandyandthedistrictsforsupporting theSEANCconventioncommunityserviceproject.
Votes
PASSED-AmotionfromtheExecutiveCommitteetoprovide$3,977inlegal assistancetofourSEANCmemberssuingthestateandfederalgovernmentfor reclassifyingtheirpositionsasexemptfromtheStateHumanResourcesAct. PASSED-AmotionfromtheExecutiveCommitteepermittingthemtonegotiatewith SEIUregardingSEANC’s$.50retireeduespaymentsifcertainconditionsarenotmet bytheendoftheyear.