April 2017 Reporter

April 2017 • Vol. 35, Issue 3

THE

REPORTER

State Employees Association of North Carolina

Small raises, bonuses in Gov. Cooper's budget Gov. Roy Cooper unveiled his first state budget proposal for 2017-2019 on March 1 that included small raises and bonuses, but stopped short of truly addressing the dire pay conditions for state employees and retirees.

Cooper proposed a 2-percent or $800 salary increase (whichever is greater) for all state employees, as well as a $500 one-time bonus and a one-time bonus of 1.5 percent for retirees instead of a cost-of-living adjustment.

Soon after the proposal’s release, SEANC Executive Director Mitch Leonard sent an email to all members giving his take on the proposal.

He said that the salary and bonus recommendations from the governor “are a good start, but we all know it’s not enough to keep up with the cost of living, especially when there’s a massive budget surplus.”

“Politicians on both sides of the aisle don’t seem to realize that the situation is dire for our state employees and retirees who have been left behind by the economic rebound,” Leonard stated.

“State employees and retirees have lost 10 percent of their buying power since 2010. One out of three state employees make less than $31,000 annually. Our members are struggling to make ends meet, working two or even three jobs just to feed their families.”

In This Issue 2 3 4 5 7 8

President's Message Public Policy Retirement Members in Action Member Benefits Special Discount

District 2 members met with legislators at the General Assembly on February 7-8. Pictured left to right: District 2 members: Wayne Fish, Cindy Crawford, District 2 Chairman Cliff Johnson, June Watkins, Bill Danielson, Rita Phillips, Dodie Collins, SEANC Lobbyist David Collins and Rep. Mike Clampett (R-Haywood). At right, Rep. John Ager (D-Buncombe) meets with the group.

State employees and retirees are already struggling from years of littleto-no pay raises or COLAs. While the economy around us has improved over the last decade, our working families have suffered. Thousands of state employees are forced to apply for food stamps and take second jobs just to survive.

No North Carolinian should be left behind, especially ones that give their careers to serving the state. We look forward to agreeing with Gov. Cooper on a number of issues, but we respectfully feel these budget

recommendations fall short.

The N.C. Senate is expected to release its budget proposal soon. Once it is approved, the N.C. House will make its recommendations. Holding a supermajority in both houses of the legislature, Republican leaders have the power to overturn any veto from the governor, meaning they will control the budget process and final outcome.

Going forward in this budget process, we will work with Gov. Cooper and the legislature to provide meaningful increases to our dedicated state employees and retirees.

GOV. COOPER'S PROPOSAL INCLUDES: ● A 2-percent or $800 salary increase (whichever is greater) for all state employees, as well as a $500 one-time bonus. ● A one-time bonus of 1.5 percent for retirees instead of a cost-of-living adjustment. ● $18 million for the correctional officer pay increase plan. ● Full funding of step pay increases for clerks, magistrates and State Highway Patrol officers. ● Funds for targeted increases to bring employees who have worked for the state for five years within 25% of the market value for their positions. ● Full funding of the State Health Plan's and Retirement System’s actuarial requirements. ● A provision to allow law enforcement officers to retire after 25 years of service (now 30 years). ● $150 million to address retiree health care liabilities.

PRESIDENT'S MESSAGE It's time for legislators to

DO WHAT'S RIGHT T

THE

REPORTER

Jonathan Owens, Editor-In-Chief Beth Dew, Managing Editor Amanda Wise, Associate Editor Sara Cowell Coburn, Associate Editor

State Employees Association of North Carolina 1621 Midtown Place • Raleigh, NC 27609 Telephone 919-833-6436, 800-222-2758 www.seanc.org

Advertising Policy

SEANC accepts advertising material from companies and persons seeking to communicate with SEANC members.

Acceptance of this advertising does not indicate SEANC approval or endorsement of any representation that the message, product or service is as represented by the advertiser. SEANC accepts no 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.

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THE REPORTER • April 2017

with a respectable paycheck for an honest day’s work. The state of North Carolina should not have employees or retirees who are paid so little that they qualify for food stamps.

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The state of North Carolina should not have employees or retirees who are paid so little that they qualify for food stamps.

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he legislative session is in full swing, and the next few months will be critical to bettering the lives of the working families SEANC represents.

Gov. Roy Cooper released his budget proposal on March 1, and I must admit I was disappointed in it (see page 1 for details). But we will continue to work with legislators to improve on it.

We’re facing a crisis in state employee and retiree pay. A lot of employees that have been with the state for decades still make less than $31,000 a year.

With one of the largest budget surpluses in years, lawmakers have a chance to confront this crisis in a meaningful way. State employees and retirees deserve the dignity that comes

We are also asking for a 2-percent costof-living adjustment for our retirees this year. Retirees like me gave decades of service and 6 percent of our paycheck each month to build the retirement system. In recent years, only Wall Street has profited from our hard work, and that is wrong.

Certainly, some legislators may have other priorities like cutting taxes or socking away the surplus in reserves. But the truth is, it’s time that the state steps up for working families and makes North Carolina the place where hard work pays off for everyone.

We need to be a priority. Our members truly are hurting. We’ve been left behind, and politicians can no longer turn a blind eye to that fact.

It is time for legislators to do the right thing for state employees and retirees. And if they don’t, we will hold them accountable in 2018, which with redistricting will be a competitive election.

REACHING OUT TO OTHER GROUPS We also know that there is strength in numbers. We have joined with several shareholder groups such as the North Carolina Association of Educators, the Retired Government Employees

President Stanley W. Drewery

Association, the Professional Educators of North Carolina, the North Carolina Retired School Personnel and others to work with Treasurer Dale Folwell on tackling issues with our retirement system and State Health Plan.

Some of these groups may represent the other side of the political spectrum from Treasurer Folwell, but now is not the time for partisan politics when it comes to retirement and health care. We have big problems arising on both fronts, and it is going to take a collective push to tackle them.

WE NEED YOU TO GET INVOLVED In my acceptance speech after being elected president at the convention last September, I made it a point to encourage members to come to the legislature and lobby for the issues we care about.

I am proud to say we have had some members take me up on that invitation.

But we need more.

No politician is going to willingly give us raises and COLAs unless we speak up.

That’s why I need you to get involved. I need you to come to the legislature and talk to your representatives. I need you to go online to engage.seanc.org and read up on our issues. Then, at that same site, you can find your legislators’ email addresses and phone numbers to contact them.

If you don’t want to contact legislators and talk politics, you can also help by recruiting your coworkers or fellow retirees to join SEANC. Set up a meeting between a SEANC representative and your boss or human resources department. But please, do something.

Without members getting involved, nothing will ever change.

SEANC President Stanley Drewery is a District 67 member and resides in Grifton.

PUBLIC POLICY We need all members to STAND UP for ECU workers

The proposed merger between East Carolina University Physicians Group and Vidant Medical Group stands to put 1,200 state employee positions and benefits at risk.

Since news of the merger broke, SEANC has been adamant that employee rights must be protected at all costs above promised profits and special interests. The fight before us is nowhere near over and we are calling on ALL state employees and retirees to stand together and let all of North Carolina know that ECU is not for sale.

Want to help? Here are three easy steps to get involved:

1

Read the SEANC Scoop each Friday. Regular updates and important information regarding the merger will be included in the Scoop. These updates will give you information and notification of any events where you can stand up and join the fight to save ECU jobs.

2

Call your legislator. This is imperative. This fight can be won, but only if legislators hear from you. If you’re not sure who your representatives are, visit www.ncleg.net and click on the tab “who represents me?” You can also search by county.

Legislators are elected to serve you and hear your concerns. Ask your legislators to speak out against attempts to privatize our jobs and let them know ECU Physicians Group is not for sale.

3

Turn out to show your support.

SEANC will be hosting events in Greenville over the coming weeks.

Depending on what actions SEANC takes or ECU takes, these meetings might involve short notice. Stay tuned for any call to actions on social media, email or directly from your district chairperson. Together, we can stand up, fight back and do what’s right for state employees, retirees and the people of Greenville.

Legislators visit Craggy Correctional Center SEANC members asked legislators to visit their work site at Craggy Correctional Center near Asheville, and a bipartisan group took them up on the offer. Sens. Terry Van Duyn (D-Buncombe) and Chuck Edwards (R-Buncombe) joined Reps. Mike Clampett (R-Haywood), Susan Fisher (D-Buncombe) and John Ager (D-Buncombe) on the tour on Feb. 17. Thank you to these lawmakers from both sides of the aisle for showing they care about state services, and that supporting state employees and retirees is not a partisan issue.

Tours like these are a great opportunity for legislators to get a feel for the issues facing state employees every day at the work site. They leave with a better understanding of the jobs you do, and are more likely to be willing to support our causes in Raleigh. If you are interested in hosting a visit from your legislators at your work site, please contact SEANC’s Government Relations Department. They can help set up a visit for you, provided that the legislators are interested as well.

The Reporter, USPS 009-852 (ISSN 1069 2142), is published six times a year in the months of February, April, May, July, September and November for $2.50 per year, per member, by the State Employees Association of North Carolina, Inc., 1621 Midtown Place, Raleigh, NC 27609.

Periodicals postage paid at Raleigh and additional offices.

POSTMASTER, Send address changes to: THE REPORTER, 1621 Midtown Place, Raleigh, NC 27609

THE REPORTER • April 2017

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RETIREMENT The 4th Branch launches Keep the Promise NC campaign

By Barbara Pace

The 4th Branch Treasurer

As many of you know, retirees who were vested in the state retirement system as of Aug. 12, 1989, are exempt from paying state income tax on their benefits thanks to the “Bailey Settlement.”

But this settlement lacks permanency since over time, many new retirees will not meet these criteria. We are passing the point at which most of those workers who were vested by that date are eligible for retirement.

A concerted effort is needed to extend that benefit to all state, federal and military employees. Enter The 4th Branch, which was organized in 1995 to get the legislature to extend the benefits to more than 300,000 government employees and retirees

in North Carolina. The 4th Branch is a coalition of federal and state retiree organizations, including SEANC, with a stated purpose of serving as an information highway.

Soon all state employees will pay state taxes on retirement benefits because they do not meet the criteria unless the Bailey decision is extended. Most government employees who are nearing retirement age today are not included in this benefit.

The 4th Branch has launched the “Keep the Promise NC” campaign.

The goal of this effort is to urge North Carolina to meet its responsibility to all government retirees by eliminating the unfair state income tax on their earned retirement benefits, which the state promised would be tax free when they began their careers of public service.

We are urging you to get involved in this

effort!

House Bill 103, the “Equal Tax Treatment of Government Retirees,” has been introduced, which will enable us to reach this goal of no state taxation on federal and state retiree benefits.

Please go to The 4th Branch website at engage.4thbranchnc.org and sign up to receive all news updates, action alerts, and other useful information about how you can make a difference in your future!

Please join us in the “Keep the Promise” Campaign and let your legislator know how important this bill is to you and other future retirees! If approved, it will put more money into the economy of North Carolina!

Barbara Pace is a longtime member of SEANC District 16 and resides in Lexington.

Retiree health care funding at forefront of early session

One of the hottest topics to come up in the early part of the 2017 General Assembly session has been the “unfunded liability” associated with retiree health care coverage through the State Health Plan.

The term “unfunded liability” refers to the amount of money it will cost to fulfill a promise the state made to employees for full health care coverage in retirement. Current projections show that paying for retiree health care could cost more than $32 billion for the current state workforce.

The liability is unfunded because leaders in the past never put funding aside to pay for it. In SEANC’s view, a better term is an “unfunded promise” or “unfunded responsibility,” since it is not state employees’ and retirees’ faults that it exists.

A bill filed in the first month of the session, Senate Bill 22 (and its companion bill, House Bill 24) would

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THE REPORTER • April 2017

set up a joint committee to study the issue and make suggestions as to how to address it.

SEANC does not oppose studying the issue; however, there is reason for concern with some of the proposed “solutions” that would place undue burden on the backs of hardworking families who rely on the plan. Several of the proposals in the bill would shift costs directly to state employees and retirees by increasing premiums or requiring state employees to contribute to the retiree health care fund.

EMPAC-endorsed state Treasurer Dale Folwell is already working on the issue, and has recommended the state put aside funds annually to begin tackling the problem. Folwell’s plan has merits as long as it doesn’t come at the expense of pay increases and cost-ofliving adjustments (COLAs).

A better source of that funding would be cutting extravagant fees

paid to Wall Street managers — a task Folwell has already started. The state could also contribute Golden Leaf funds to the effort, since the State Health Plan is the largest in the state and therefore, bore much of the burden of paying for tobacco-related health problems.

State employees and retirees are already struggling from years of littleto-no pay raises or COLAs. Once upon a time, lower pay in state employment was accepted because the benefits were better than what was offered in the private sector. Working in state government provided security because of promised benefits like guaranteed health coverage at retirement.

Placing the burden on working families who did not cause the problem is not the answer. SEANC will continue to voice concerns over the proposals as the session progresses.

SARA COWELL COBURN

SUBMITTED BY MARY O'NEILL

MEMBERS IN ACTION

On Feb. 18, District 39 volunteers served hot chocolate during the NCSU Polar Plunge sponsored by the NCSU Police Department. The event is held each February at Lake Raleigh to raise funds for N.C. Special Olympics. Pictured: District 39 members Wanda Simmons, Shoshana Serxner-Merchant, Mary O'Neill and Doug Skinner.

SEANC has enlisted the help of Alternative Payment Options Enrollers who will be visiting agencies all over the state in coming months to switch members over to bank draft! The members were trained at the Central Office on how to answer any question you may have as you make the switch. You can also enroll in bank draft online using SEANC’s new easy and secure website, apo.seanc.org. If you would like for an APO Enroller to visit your workplace, contact the Member Relations Department at lcote@seanc.org or call 1-800-222-2758.

District 18 donated Christmas gift bags to patients at Pruitt Health Services in Rockingham, NC. Pictured: District 18 member Dewey Brower, a Pruitt Health Services representative and District 18 Chairwoman Lisa Martin.

LYNN TUTHILL

JOHNNY DAVISON

SARA COWELL COBURN

SUBMITTED BY LISA MARTIN

EMPAC-endorsed state Treasurer Dale Folwell (front row, third from right) visited the SEANC Retiree Council’s meeting on Feb. 9. He made it clear that he planned to stand up for state employees and retirees. Folwell has already started the process of renegotiating fees with investment managers in his first two months in office — a process that will benefit state employees and retirees as well as taxpayers. He also said that costs for the State Health Plan for state employees and retirees has gotten out of hand, especially dependent care coverage premiums.

District 65 gained five new members at a Valentine-themed membership blitz held in Greenville on February 15. Despite the rain, more than 90 ECU employees came out to collect their free Chick-fil-A sandwich lunches, Prudential tote bags, and restaurant coupons. More than 15 door prizes were given away, as well as two $25 Walmart gift cards in a drawing for those who joined SEANC at the event. Ten vendors were on hand to promote their businesses: joining SEANC and Prudential were the American Cancer Society, Aquamarine, Children’s Miracle Network Telethon, US Cellular, Wine and Design, Riley’s Army, SECU, and Attraction Dining Guides. Pictured: District 65 member Lynn Tuthill, SEANC Organization/Political Strategist Amanda Finelli, District 65 Chairwoman Alicia Simpson, District 65 members Chantelle Johnson, Debbie Austin, Shirley Williams, Dwayne Mackey Jr., Cynthia Hart, SEANC Member Relations Representative Celia Wilson and District 65 member Cynthia Brown.

District 8 held their monthly meeting on March 2 in Wilkesboro. Twenty-four members attended.

SHOW OFF YOUR DISTRICT Submit a picture with a brief description (including the names of the people in the picture) from a district activity (fundraisers, membership drives, advocacy efforts, etc.) by email to reporter@seanc.org or by mail to: SEANC c/o The Reporter, 1621 Midtown Place, Raleigh, NC 27609 THE REPORTER • April 2017

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My practice is restricted to state personnel disciplinary and licensing matters. I have litigated personnel cases in the Office of Administrative Hearings since the 1990s.

If you have a grievance, disciplinary appeal, or any state employment matter, call (919) 865-2572 or email me at michael@mbyrnelawnc.com.

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We appreciate doing business with you!

Colonial Life is proud of our long relationship and partnership with the State Employees Association of North Carolina.

To learn more contact: Colonial Life Toll Free: 888-SEANC-4-U (888-732-6248) Colonial.NCService@gmail.com

Please call us if we can be of service.

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THE REPORTER • April 2017

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MEMBER BENEFITS QUOTES to NOTE

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“We understand that all of our state employees have been left behind.”

Gov. Roy Cooper in the Feb. 20 News & Observer story “Gov. Roy Cooper's teacher pay plan: Raises averaging 10% over next two years”

“The irresponsibility of previous politicians should not be something the employees and retirees should be responsible for cleaning up. Remember that retirees did the yeoman's share of funding for retirement...Employees have consistently put 6 percent in it.”

SEANC Government Relations Director Ardis Watkins in the Feb. 6 Carolina Journal story “Folwell vows to attach unfunded pension, health liabilities”

“I ask these money managers, ‘Who are you? Where are you? How good are you?

And how much are we paying you?’ The fact is in most instances the active managers have, generally speaking, not performed as well as what we could have done if we put it in an index fund at much lower fees.”

State Treasurer Dale Folwell on his calls to Wall Street in the Feb. 27 Triangle Business Journal story “Treasurer: N.C. may shift investments to index funds, away from foreign stocks”

Scholarship Deadline is April 15 The deadline for applying for one of SEANC’s scholarships is fast approaching!

Applications must be turned in to your district scholarship chairperson postmarked no later than April 15.

The scholarships awarded by the SEANC Scholarship Foundation and the individual districts are one of the association’s largest benefits for members.

For more on the criteria, for an application, or to find your district scholarship chairperson, visit seanc.org/scholarship.

“It's been a privilege to be here and represent state employees, their concerns and their needs. I have truly enjoyed it.”

District 2 Member Rita Phillips, lobbying for state employee and retiree issues at the N.C. General Assembly in early February

Theme park season is just around the corner!

SEANC has once again partnered with the State Employees’ Credit Union to offer savings at nine theme and water parks in North Carolina, South Carolina, Tennessee and Virginia.

Tickets can be purchased at any State Employees’ Credit Union branch.

Exclusive for SEANC members!

Purchase discount tickets for Water Country USA directly from SEANC at seanc.org THE REPORTER • April 2017

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