THE
Publication of the State Employees Association of North Carolina • March 2009 • Vol. 27 No. 2 • Circulation 55,000
SEANC Lobby Day Draws 250 Members to Protect Health Plan and Jobs By Mary Adelaide Bell RALEIGH – Although the sun was out and Raleigh had nearly record-breaking temperatures, the mood of SEANC Lobby Day participants was more serious than celebratory. With the current sagging economy, members’ main focus was preserving State Health Plan benefits and promoting quality public services. Nearly 250 state employees attended SEANC Lobby Day on Feb. 10.
“There are ways to look for money, and it shouldn’t be in our pockets,” SEANC Executive Director Dana Cope told lobby day attendees. “The state has a rainy day fund, and I’ll tell you, where I’m standing, it’s pouring in the state of North Carolina.” The rainy day fund Cope mentioned totals nearly $1 billion earmarked for emergencies. If state employees are charged a limited employee premium now, it would open the door for more premium increases in the future, Cope said.
PHOTO BY MARY ADELAIDE BELL
Legislators have been told the State Health Plan is facing a $300 million shortfall by June 30 and a projected $1 billion deficit for the 2009-2010 fiscal year. That money must be appropriated from somewhere, and some legislators and State Health Plan administrators believe the answer is raising premiums and lowering benefits.
Second Vice President J.C. Boykin, left, President Tony Smith, center, Bill Spade of District 22, back left, and Carl Jones of District 18, back right, meet with Sen. Tony Rand (D-Cumberland), right, on Feb. 10 during SEANC Lobby Day.
Mike Kollock, a 16-year Department of Health and Human Services employee from Kinston and District 66 chairman, had to drop dependent health care coverage after it climbed to nearly $500 a month.
State employees make 4 percent to 21 percent less than equivalent jobs in the private sector. A 31 percent increase in dependent coverage would be detrimental to the employees of North Carolina.
Rand is also co-chairman of the Committee on Employee Hospital and Medical Benefits. As such, he has more influence over the State Health Plan than any other legislator.
“It’s scary to think many of us are one car accident or major illness away from bankruptcy,” Kollock told lobby day attendees. “The state needs to take care of our health care so we can take care of our health.”
However, Cope noted that Gov. Bev Perdue pledged she would not support any measure requiring state employees to pay part of the premium on their own health insurance.
In addition to seeking protection of health plan benefits, SEANC members lobbied to preserve state jobs as public demand increases in a tight economy.
In a recent report released by SEANC, North Carolina ranked 49th in contributions toward family health care coverage (see page 3 for more information on the report). If dependent coverage is raised the 31 percent some state leaders are asking for, family premiums would rise to more than $640 a month.
“I want to make sure employees can afford it if they want to cover their families,” said Senate Majority Leader Tony Rand (D-Cumberland) while in a meeting with SEANC members. “To me, it’s one of the largest benefits we have for our employees. We need to preserve it the best we can.”
“As the state looks to its own budget, it’s important we show them how important our services are to the citizens – especially in these tough times,” said President Tony Smith. mbell@seanc.org
SEANC’s 2009 Legislative Agenda: u Continue premium-free employee State Health Plan option u Prevent increased premiums, deductibles or co-pays PHOTO BY MARY ADELAIDE BELL
u Achieve equity in pay raises for all state employees u Reform the retirement system investment authority (abolish no-bid contracts awarded by a sole trustee) u Repeal G.S. 95-98, which prohibits North Carolina public employees from collective bargaining
2 PUBLIC POLICY
State Health Plan Whipsaw by Adam
Searing, Director of the NC Justice Center’s Health Access Coalition
Editor’s Note: SEANC is a member of the NC Health Access Coalition. This column originally ran in the coalition’s newsletter, NC Health Report. A Jan. 6 WRAL news story about the State Health Plan shortfall said that North Carolina’s State Health Plan has a $65 million deficit that “has continued to balloon in recent months.” Yet just two weeks before the WRAL story ran, State Health Plan Director Jack Walker wrote this on the plan’s Web site: “Although expenses continue to exceed income, the plan’s year to date net loss at the end of October is only $52.3 million.” He added, “The plan’s financial results are slightly better than expectations through October.” In contrast to this somewhat optimistic take, on WRAL Walker called for a $300 million bailout by the General Assembly of the State Health Plan along with sharply higher premiums, co-pays and deductibles for state workers. It seems every time you turn around there is a different number coming out of the State Health Plan regarding its finances. This is inexcusable. The this is a serious conversation for our entire state. hundreds of thousands of state workers and retirees The State Health Plan currently doesn’t compare who depend on this plan for their health care deserve favorably to many health options available in private better information, as do taxpayers. If administraindustry, even accounting for current problems in the tors can’t figure out a clear number for losses, they cost of employer-provided health insurance. should just admit their inability instead of constantly throwing out conflicting information. “ Blue Cross, who administers the State Health Plan, is In addition the idea making tens of millions in profits this year in its private that a huge deficit in the insurance business, while the state plan it administers is plan inevitably requires losing millions.” state workers to now pay higher premiums, copays and deductibles is outrageous. Perhaps workAnd the cost of covering one’s family under the ers will have to share a higher burden of costs, but state plan – already around $500 a month – is pro-
hibitively high compared to other states and private industry. Making the State Health Plan even more expensive means a harder time recruiting quality teachers, road engineers, insurance regulators and state highway patrol officers – just to name a few of the jobs our state employees do every day. Or, for that matter, doctors in hospitals like UNC, professors who teach kids on every campus in the university system and community college staff and instructors. The effect of the changes that are being proposed in the State Health Plan on the quality of life in our state clearly needs to be a part of the conversation. And it isn’t right now. We also need to be looking at ideas to rein in health costs for everyone in our state, including state employees. And we could start with the fact that North Carolina Blue Cross, who administers the State Health Plan, is making tens of millions in profits this year in its private insurance business, while the state plan it administers is losing millions (whatever that number is).
photo by Mary Adelaide Bell
Here’s an idea: Blue Cross is still a nonprofit entity. Let’s require them to combine the State Health Plan pool with their individual insurance pool (Blue is virtually the only provider of individual coverage in the state.) Allow Blue to continue to administer this big pool, but require them to offer coverage at the same price to everyone – state employee or not. That way we eliminate the incentive for Blue to sell its individual coverage only to the young and healthy so they don’t unfairly profit from the fact that so many older North Carolinians are in the State Health Plan since it also covers state retirees.
SEANC Shares State Employee Concerns on Day One SEANC leaders were on hand in Raleigh on Jan. 28, opening day of the legislative session. Lobbyist Suzanne Beasley Malysz, Executive Director Dana Cope, Past President Linda Rouse Sutton, President Tony Smith, Legislative Affairs Director Ardis Watkins and Retiree Director Mitch Leonard prepare to greet legislators outside of the House chamber.
This would combine the two single biggest pools of insured people in the state and so eliminate attempts at cost shifting, support our state employees with a quality health plan and set up a framework so that more people in North Carolina could find an affordable health plan. adam@ncjustice.org
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SEANC Releases New Report, “North Carolina: Public Services in Jeopardy” By Erica Baldwin On Feb. 10, SEANC released a new report, “North Carolina: Public Services in Jeopardy,” detailing the high level of turnover within state government, its causes and its costs. The report shows that while state employees work every day to provide valuable services, they are hindered by constant turnover and the costs associated with recruiting and retraining new staff. “We have to stop the revolving door of government and make working for the state attractive again,” said SEANC Executive Director Dana Cope. “Taxpayers deserve quality services.” Turnover is alarmingly high for new hires and younger workers – one third of all new state employees leave within their first year. Turnover for 18-25 year olds reached 30 percent in 2007. Experienced workers are retiring, and many of the state’s high-performing employees leave for better-paying private sector jobs.
According to the Office of State Personnel (OSP), the cost of replacing an employee is approximately 150 percent of their salary – costing the state $563 million in turnover for 2008. This money would be more wisely invested in improving benefits to retain experienced employees. SEANC’s report, prepared by the Service Employees International Union, outlines several reasons for the high turnover rate: 1) State health benefits trail other states and the private sector. 2) State employees contribute most of their own retirement benefit. 3) State salaries lag behind inflation and market pay. In the 2009 Compensation and Benefits Report, the OSP stated, “Because the cost of replacing human capital is so high, we believe this underscores
the need to closely monitor turnover, strive for competitive salaries and maintain a positive work environment with high employee engagement levels.” If the state does not provide resources to attract and retain quality employees, public services and the public are at risk. Mental health facilities lack qualified staff, putting patients in jeopardy. Probation officers face unmanageable caseloads, causing them to lose track of potentially dangerous parolees. The report was provided to all legislators to educate them on the immediate and vital need of investing in public services. The report is available on the SEANC Web site, www.seanc.org, under “News” and “Media Kit.” ebaldwin@seanc.org
SEANC urges state leaders to invest in public services and its employees to meet the public’s demand for quality services. Demand on public services has steadily increased since 2000, most notably in the following areas.
28% 22% 21%
28% increase in public college enrollment 22% increase in the state prison population 21% increase in acreage of state parks 11% increase in the number of licensed drivers 10% increase in psychiatric hospital admittance
11% 10%
The Reporter Toni Davis, Editor-in-Chief Erica Baldwin, Managing Editor Mary Adelaide Bell, Associate Editor/Advertising Manager Amber Ernst, Associate Editor 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 persons seeking to communicate with SEANC members. Acceptance of this advertising does not indicate SEANC approval or endorsement or any representation that the message, product or service is as represented by the advertiser.
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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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State Working to Correct BEACON Payroll Errors By David McCoy, State Controller Editor’s Note: Since November, SEANC staff and officers met with David McCoy numerous times to ensure state employees’ pay and leave is correct. State Controller McCoy’s article is in response to those meetings and your feedback. If you still have unresolved payroll issues, please call the number below. One of my first actions as state controller was to direct my staff to do everything possible to make sure you are paid what you are owed on time and that any payroll issues are resolved quickly. We have made the pay statements easier to understand. Our help McCoy desk works with you until your issues are resolved – even when the agency human resources or payroll departments must make the adjustment in the system. We sent out deployment teams so each agency has a key contact to help resolve issues. As many of you know, when the BEACON Human Resources Payroll system deployed, a number of data entry and coding errors were made. To true the data in the system and to eliminate the past errors, we recalculated all employee time back to the
BEACON system go-live dates, beginning for some Dec. 15, 2007. This recalculation will fix several issues that you and your agencies said concerned you. We believe this was a necessary step to make sure payroll information is accurate and to give you and your agencies confidence in the system. This recalculation: • Corrects holiday leave balances. • Allows the system to produce more accurate time statements back to May 1, 2008.
a change in pay. If you are owed more money, you should have seen more money in your deposit. If you were overpaid, the system should have collected the money. However, we asked agencies to work with those of you who were overpaid and set up a repayment plan, especially in hardship cases. I also made sure employees who received an overpayment can be advanced money by their agency so repayment can be made over time.
• Allows the system to close outstanding tickets more quickly and solves many of the remaining quota balance issues.
In mid-January we sent each agency a spreadsheet identifying specific employee pay impacts that should be investigated further. We also asked each agency to inform employees of any pay differences they could expect in their January deposit.
• Completes the annual rollover of vacation leave to sick leave for employees who had more than 240 hours in their vacation leave quota as of Dec. 31, 2008.
My commitment to you is this: we will help you resolve any issue you may have and we will continue to improve this system to make sure it works for you.
Because of the time recalculation, some of you may have noticed a difference in January’s pay. For example, if your overtime or shift pay eligibility changed – and your agency did not request that BEACON update the records – then this recalculation would catch this error and you could have seen
If you have any questions about your pay or time statements, please call BEST Shared Services at 866-622-3784 or 919-707-0707. BEST Shared Services is the help desk and takes calls from 7 a.m. until 7 p.m. Monday through Friday.
SEANC Assists DMV Employees with Weather Policy Concerns by
Erica Baldwin
SEANC received numerous calls from DMV employees who were rightly concerned about losing personal time after following instructions from department leadership. SEANC Legal Counsel Tom Harris followed up with the department’s human resources office and the Office of State Personnel (OSP); he learned that the state’s Emergency Closing Policy had been mistakenly applied. Upon SEANC’s inquiries, both departments willingly took another look at their response to employees. “Employees should not be penalized for a management mistake,”
photo by Mary Adelaide Bell
In the face of snowy weather, Department of Motor Vehicle (DMV) employees were instructed by department leadership to head home at 2 p.m. on Jan. 20 and to return at 10 a.m. on Jan. 21. Employees returned, however, to a memo stating they needed to use personal leave or make up the time missed, according to the state’s adverse weather policy.
said Harris. He pointed out that the leadership was cooperative and responded quickly. “We are fortunate to have new leadership that will do the right thing by its employees,” Harris added.
SEANC Welcomes Back Legislators SEANC Legislative Affairs Director Ardis Watkins, left, speaks with Rep. Dan Blue (D-Wake) on Jan. 28, opening day of the 2009 General Assembly session.
As a result, DMV employees will be allowed to take “administrative leave” rather than using personal leave or adverse weather leave. OSP plans to send a message to all state agencies reminding them of when and how the Emergency Closing Policy can be used.
THE REPORTER USPS 009-852 (ISSN 1069 2142) is published in the
ebaldwin@seanc.org
27611-7727.
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
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President’s Message by Tony
Smith
Together We Can Make a Difference It has been five months since I took on responsibilities as SEANC president, and those months have been exciting and full of activity. I have witnessed the Smith strength of this organization as we united behind candidates elected to office. I watched with pride as a SEANC member took
opportunity to see the strength of our numbers and the determination of our will united in a common cause.
In these tough economic times, SEANC members may be inclined to end their membership in this vital organization. But now, more than ever, is the time to be a member of SEANC. With state government facing a budget shortfall that stretches over the billion dollar mark, now is the time to ensure that the benefits you were promised are not decreased or tak“ With state government facing a budget en away. It is the job of shortfall that stretches over the billion SEANC to lobby tiredollar mark, now is the time to ensure that lessly on your behalf to ensure the protection of the benefits you were promised are not your jobs and benefits. decreased or taken away.” I challenge each of you to tell the SEANC the oath of office as the first female story to at least one co-worker who is governor of this great state. And it was not a member. Tell them how SEANC with great determination that I, with is standing up to those in the legislahundreds of my fellow SEANC memture who seek to diminish or destroy bers, marched across the great seal of benefits like the State Health Plan. this state through the doors of the legLet them know the advantages of islature to lobby our recently elected membership and the strength of comand re-elected officials on behalf of all ing together to make our voices and state employees and our State Health concerns heard. Plan. We must grow our numbers, unite in During the recent lobby day, I witone voice and say, “We are the state of nessed hundreds of SEANC memNorth Carolina and we will be heard.” bers unite and work together to tell We are the energy and the grease that our stories to legislators. Lobby day keeps the wheels of this great state was an empowering event, and I enturning, and SEANC is here to protect courage all members to keep an eye on us as we protect the state. the SEANC calendar for the next one. Participants in the day had the smithfamily28655@charter.net
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Eight Years and No Gain When State Treasurer Richard Moore left office, the state employee pension fund that he was charged with managing was worth less than when he took office. At the end of November, the state pension fund was valued at $59.97 billion, according to department reports. When Moore took office in January 2001, pension fund assets stood at $61.5 billion. The stock market has ticked up a bit since the end of November, but probably not enough to put the value of the pension fund above where it stood eight years ago. The point here isn’t to cast blame at Moore. The losses by the North Carolina pension fund, triggered by the meltdown in the financial industry and the recession, parallel those by other public pension funds and your own 401ks. But the steepness of the decline (the pension fund stood at $79.6 billion in November 2007) ought to be creating a bit more public debate about whether the more aggressive investing style championed by Moore, and now his successor, Janet Cowell, is really in the best interest of pensioners. That debate ought to be going on at the legislature, which is ultimately responsible for the laws that govern pension fund investing. After all, those same legislators will be putting more of your tax dollars into that pension fund if investing gains don’t keep pace with the pension requirements of retiring state employees. State employee groups that are supposed to be looking out for the interests of their members – the North Carolina Association of Educators and the State Employees Association of North Carolina – ought to be pushing the debate. Not that the outcome is clear. Perhaps a detailed, comprehensive look at these issues reveals that more aggressive investing is appropriate.
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Photo by ERICA BALDWIN
By Scott Mooneyham, Capital Press Association
State Treasurer Janet Cowell presents the retirement system’s $17 billion loss during a Jan. 23 press conference in Raleigh, making the fund’s value approximately $60 billion.
But a couple of undeniable facts can’t be overlooked. First, whether the practice would have been actuarial sound or not, the state’s pension fund – just like most people’s investments – would be worth more today had they been invested solely in conservative bonds over the last eight years. Second, Moore’s decision to pump more money into venture capital and hedge funds, and then rely on those private fund managers for campaign donations, brought unflattering publicity to him and the state. In taking those campaign contributions, Moore raised questions about the motivations of a more aggressive investing style. Now, with the market tanking, state pensioners and taxpayers can’t afford legislative leaders who shut their eyes to the connections.
If more aggressive investing is appropriate, then we need more oversight and clearer lines so that a treasurer’s motivations aren’t so easily questioned. If decision-makers don’t want to go there, then perhaps they ought to think about pulling back on liberalized investing rules. Without one or the other, the North Carolina pension fund is poised for more problems. Those problems might even be worse than an eight-year loss. Editor’s Note: This article was modified from an article originally published in the The Insider’s Jan. 5 afternoon update. The column ran in several state newspapers.
Quotes to Note
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“You can go down the line, agency by agency. In these tough economic times it’s those state employees who are stepping up.” Executive Director Dana Cope, on the increased demand on state services in tough economic times, in The News & Observer’s Jan. 14 article “Perdue prepares to slash budget.”
“We’ve been preaching an employer match of 6 percent for years. Investment returns – you can’t count on them in a bad economy.” Assistant Director of Communications Erica Baldwin in The Associated Press article “NC public pension fund value fell $17B in 2008” on Jan. 23.
“It’s a ripple effect. If people can’t pay until they get sick, they end up in the emergency room, they can’t work and it affects the taxpayers. So why not deal with it on the front end?” District 42 member Amaka Flynn, on potential increases in State Health Plan premiums causing employees to decrease preventative care visits, in the Jan. 18 News & Observer article “Health plan needs bailout.”
“The state needs to realize that in order to retain and attract good people to public service, they’re going to have to pay more into the State Health Plan. We want to come up with some good proposal that’s going to benefit all the interested parties – the plan participants, the taxpayers and the dependents that are now left out of the plan.” Executive Director Dana Cope in The News & Observer Dec. 26 article “State’s health plan nearly broke.”
“When you have mass layoffs in state government, that creates a ripple effect in the state economy. [Federal stimulus funds] can be used so we don’t have to reduce our force or have layoffs.” Executive Director Dana Cope in The Associated Press article “Perdue: NC agency heads need layoff plans in place” on Feb. 3.
“We spend 25 percent less [for health care] on average. We spend 50 percent less than states like Alabama. So who’s to blame – might be the state itself for not taking care of the plan all along.” Legislative Affairs Director Ardis Watkins on News 14’s Feb. 4 story “Officials say Health Plan in monetary crisis.”
“Employees are required to put in 6 percent of their paychecks every month for their retirement and we think it’s not too much to ask the state to do the same.” Assistant Director of Communications Erica Baldwin on NBC-17’s report “State pension fund lost billions in 2008” on Jan. 23.
“We’re out here struggling. We’re trying to make it, and we’re doing the best we can. I don’t mind working. I love my job. But why, when it’s already hard, make it any harder on me? I’m trying to do the best job I can.” Renaye Johnson of District 70 on News 14’s Feb. 10 story “State employees battle health plan premium hike.”
“Anything that attracts more, healthier people into the State Health Plan would be helpful. The challenge is making that dependent coverage competitive with the private health care that exists.” Executive Director Dana Cope in The Associated Press article “NC health plan wants to attract young, healthy” on Feb. 8.
Want to see more SEANC headlines? Check out www.seanc.org under “News” and “SEANC in the News.”
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Executive Director by
Dana Cope
Persistence Pays Off as SEANC Continues Retirement “Reality Check” SEANC, as always, is working hard on behalf of state employees and retirees – even if it doesn’t earn us any popularity contests. Cope When you read this issue of The Reporter, you’ll see how SEANC worked for months to make sure you were paid correctly in the wake of BEACON payroll glitches. You’ll also read how SEANC worked with the Office of State Personnel to make sure DMV employees weren’t penalized when management sent them home during bad weather. These issues are on top of our work in the legislature making sure your pay, health care, retirement and valuable services are protected. However, some issues worth fighting for take longer than months or weeks, including SEANC’s years-long fight on behalf of your retirement benefits. On Jan. 15, I presented the Retirement System Roundtable’s recommendations (see box below) to the Retirement Systems Board of Trustees, now under the leadership of state Treasurer Janet Cowell. Moments after I left the room, Treasurer Cowell spoke to SEANC lobbyists indicating that we needed to lower our expectations in the face of economic reality. SEANC Legislative Affairs Director Ardis Watkins responded that SEANC had been lobbying for “reality” for years as the only group bold enough to seek better retiree benefits in the good years, instead of playing it unnecessarily
safe with the “overfunded” status. The General Assembly has been investing less in the retirement system, causing the surplus to steadily decline. Now, in spite of holding back on retiree benefits, the state pension fund dropped from 104.7 percent funded in 2007 to a projected 100 percent for the end of 2008, according to Cowell during a Jan. 23 press conference. While retiree benefits lagged during those overfunded years, retirees will face even lower costof-living adjustments (COLAs) as the fund dropped $17 billion in 2008. You see, the retirement fund was designed to cover benefits from its gains, but management shortfalls and the lack of employer contributions will force funding from the General Assembly. Active employees must contribute 6 percent of their paychecks toward retirement, but the state has only contributed 0 percent to 3 percent over the last eight years. The employer contribution has been the missing piece of the puzzle far too long, and SEANC is the only group to cry foul. The only bright spot is that the fund losses will finally compel the General Assembly to increase the employer contribution just to keep the system sound – something SEANC has been seeking for years. Retirees will get their pension checks, but changes must be made to secure the retirement system’s future. The reality is this: SEANC continues to work hard for the benefits promised to you and will persist in order to keep your retirement secure. dcope@seanc.org
SEANC, as a representative of the Retirement System Roundtable, presented the following recommendations on Jan. 15 to the Retirement Systems Board of Trustees: • Appropriate $29 million in funding for the Teachers’ and State Employees’ Retirement System (TSERS) • Increase the employer contribution to 5% of payroll in 2009-2010 and to 6% in 2011-2012 • Provide a COLA equal to the Consumer Price Index • Increase the actuarial formula from 1.82 percent to 1.83 percent in 2009 In spite of SEANC’s efforts, the Retirement Systems Board of Trustees voted to recommend the legislature consider a COLA equivalent to active state employees’ pay raises or at least 1 percent if pay raises are negligible.
What is NCThinks? NCThinks is North Carolina’s strategic suggestion system. Our mission is to save tax dollars by engaging employees in workplace improvement related to organizational objectives. In other words, at NCThinks, our mission is your mission. As an incentive to participate, employees are handsomely recognized and rewarded for submitting creative ideas that support organizational objectives.
What are the rewards for having an idea adopted? Pride and job satisfaction are the greatest rewards. In addition, suggesters may receive cash awards up to $20,000 individual/$100,000 team, up to three days leave with pay, and a certificate from the Governor’s Office.
Who is eligible?
Full-time, part-time or temporary North Carolina state employees (state paid)
What suggestions are eligible? •
Suggestions that offer improvements in safety, costs, productivity, working conditions, services to the public, energy resources or employee morale are invited.
•
The suggestions must be innovative ideas that the employee can not implement without supervisor approval.
What suggestions are not eligible? •
Ideas currently under consideration, duplicates, common practices, complaints, grievances, salary/classification/benefit changes, enforcement of existing rules or regulations, or routine maintenance matters.
How can I participate? •
Your agency or school will identify its most pressing challenges. Think of a solution. Outline it step-by-step. Collect facts and figures to support your idea.
For more information and complete details, go to: www.ncthinks.nc.gov
8 S E A N C lobby d ay
Lobby Day Activists Ask Legislators to Preserve Health Benefits
The Department of Transportation was well represented at SEANC Lobby Day. Pictured, left to right, are Randy Brown, Barry Allen and Floyd Roberts of District 17.
“We are the working force for North Carolina,” President Tony Smith welcomes members to SEANC Lobby Day.
Photo by Erica Baldwin
Photo by Erica Baldwin
Photo by Mary Adelaide Bell
SEANC Lobbyist Suzanne Beasley Malysz gets a few moments to speak with Rep. Timothy Spear (D-Washington) before the House convenes.
“North Carolina ranks 40th in its contribution toward employee health care,” SEANC Executive Director Dana Cope tells the gathered reporters. “North Carolina, the state that we love to live and work in, ranks 49th in its contribution toward family health coverage.”
Photo by Amber Ernst
Photo by ERICA BALDWIN
Photo by Mary Adelaide Bell
Compiled by Amber Ernst
Ardis Watkins, left, and Rep. Jennifer Weiss (D-Wake) review a report from the General Assembly Fiscal Research Division.
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Pictured, left to right, Barry Cobb of District 17, Barbara and Harry Coble of District 18 and Rita Woods and Quinterlene Bowen of District 68 show their pride in public service before the rally begins.
Photo by Erica Baldwin
“As state employees we are making thousands less than our counterparts in the public sector. We cannot afford to lose our benefits today,� District 66 Chairman Mike Kollock addresses the gathered members.
Photo by Mary Adelaide Bell
Photo by Erica Baldwin
SEANC lobby day
photo by Erica Baldwin
SEANC members from the legislature, Rep. Pat Hurley (R-Randolph), second from left, and Rep. David Guice (R-Transylvania), center, took time out of their morning to join fellow SEANC members Dan Efird, District 17 chairman, far left, and Shirley Ballard of District 47, right, at the lobby day rally.
Rep. Grier Martin (D-Wake), left, talks to a reporter form NBC-17 during SEANC Lobby Day as Ernest Honeycutt of District 42, center, and Jonathan Stephenson of District 19, right, look on.
Photo by Erica Baldwin
Photo by Mark Dearmon
Photo by Erica Baldwin
Dana Cope, Rep. Garland Pierce (D-Scotland), Shanticia Hawkins and Gloria Upperman, both of District 26, greet each other between meetings with legislators.
Rep. Melanie Goodwin (D-Richmond), left, stops to speak with Nicole Black of District 18.
Dana Cope, left, speaks with Sen. Doug Berger (D-Franklin) before the start of the lobby day rally.
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Counselor’s Comments By Tom Harris SEANC Chief of Staff/General Counsel
Take Note of Recent Changes to ADA and FMLA In January noteworthy changes took effect to two federal laws, the Americans with Disabilities Act (ADA) and the Family and Medical Leave Act (FMLA).
took effect on Jan. 16, was prompted by Congress’s 2008 amendments that added family military leave entitlements to the FMLA.
The ADA Amendments Act of 2008 (ADAAA), which took effect on Jan. 1, reverses the trend started by recent U.S. Supreme Court decisions that narrows the broad scope of protection intended by Congress for individuals with disabilities. For example, the Supreme Court held that persons who have successfully managed their disabilities through treatment or apparatus are not covered by the protections of the ADA. Under the ADAAA, however, the ADA’s protection will apply even if the disability is well managed, such as when cancer is in remission or when high blood pressure or diabetes is successfully controlled by medication. The one exception to this new standard is that persons who can fully correct their impaired vision with the use of eyeglasses or contact lenses will not be afforded protection under the ADA.
• 12 weeks of leave in a 12month period to use for qualifying activities and responsibilities related to active military duty of the employee’s spouse, child or parent (such as child care and school activities or financial and legal arrangements) and
Harris
In addition, even though the ADA states that a person is protected from employment discrimination if they are perceived to have a disability when they do not actually have one, the Supreme Court also ruled that ADA protection applied only if the perceived disability actually limited a major life activity of the person. In practical effect, that ruling meant the person had to be disabled for the ADA to apply, and it eliminated “perceived disability” coverage altogether. The ADAAA restores that “perceived disability” coverage by specifically stating that the ADA covers persons with a perceived impairment “whether or not the impairment limits or is perceived to limit a major life activity.” Thus, the ADAAA clearly prohibits adverse employment actions based on myths, fears and stereotypes when the person being discriminated against may not actually have a disability, but is simply perceived as having one. The U.S. Department of Labor’s (USDOL) adoption of its Final Rule on Family and Medical Leave, which
The new rule details the procedures for use of family military leave, which allows eligible employees to take jobprotected leave of up to:
• 26 weeks in a 12-month period to be a caregiver for a spouse, child, parent or next of kin who is a service member suffering from a serious injury or illness. USDOL also used the final rule to clarify several interpretations of the FMLA on which various courts differed. For example, two federal courts ruled that employees were still using FMLA leave when they came back to work on light duty. The final rule, however, states that light duty work does not count as FMLA leave. This is in line with what the majority of courts have held. In addition, the final rule clarifies what it means to have a “serious health condition,” one of the requirements for FMLA eligibility. One of the definitions of serious health conditions involves more than three consecutive, full-calendar days of incapacity plus “two visits to a health care provider.” Because the prior rule was open-ended, the U.S. Court of Appeals for the Tenth Circuit held that the two health provider visits must occur within the more-thanthree-days period of incapacity. Under the final rule, the two visits must occur within 30 days of the beginning period of the incapacity and the first visit must take place within seven days of the first day of incapacity. Find more information at http:// www.eeoc.gov/ada/amendments_notice.html (ADA) and http://www.dol. gov/esa/whd/fmla/finalrule/factsheet. pdf (FLMA). tharris@seanc.org
11 m e m be r ac t io n SEANC Scholarship Golf Tournament June 20-21 (ENTRY DEADLINE: JUNE 8)
WHO?
SEANC members and families
photo CONTRIBUTED BY george Kapetanakis
WHAT? Annual golf tournament WHEN? June 20-21 WHERE? The Country Club of Whispering Pines 2 Clubhouse Blvd., Whispering Pines, NC 28327 WHY? Benefit the SEANC Scholarship Program The entry fee is $120, payable to SEANC Golf. This fee includes two days of green and cart fees, poolside social, buffet and prize and trophy costs. The entry fee must accompany your completed entry form. Tournament proceeds benefit the SEANC Scholarship Foundation.
District 37 Holds Benefit Breakfast District 37 held their annual benefit breakfast on Nov. 20 in the Transportation Building in Raleigh. The Food Bank of North Carolina benefited from the breakfast with proceeds and donations totaling $500 and six boxes filled with canned goods. For every dollar donated, the food bank can provide $8 worth of food or four meals. Pictured, left to right, are event volunteers and District 37 members Diane Williams, David Smith, Bobby Duke, Abby Daniel, Red McNeill and Karen Smith.
If you would like to play a practice round on Friday, June 19, you must call the Country Club of Whispering Pines to schedule your tee time. There is a $35 cost. The field will be limited to a first come, first serve basis. Golfers will be flighted after the first round of play, and trophies will be awarded to flight winners based on gross scores. Sunday’s scores will be used to determine winners in case of ties beginning on the first hole, except for the championship flight, which will go to a sudden death playoff beginning on number one.
SCHEDULE OF EVENTS
photo CONTRIBUTED BY mary o’neill
Friday, June 19 On your own Practice Round 6:00 p.m.-7:30 p.m. Poolside Social at CC of Whispering Pines Saturday, June 20 8:30 a.m. First Round 6:00 p.m.-7:30 p.m. Buffet Dinner at CC of Whispering Pines Sunday, June 21 8:30 a.m. Second Round Awards After Play
ENTRY FORM SEANC DISTRICT #:_______________ PHONE: _ ______________________ NAME:___________________________________________________________
District 39 Provides Furry Friends for Children
ADDRESS:_ _______________________________________________________
Each Christmas District 39 collects stuffed animals to give to children in local hospitals. In December, they collected more than 400 bears that were delivered to pediatric units at four Raleigh-area hospitals. District 39 delegate Marty Moody and Chairwoman Mary O’Neill are pictured with nurses from the pediatric unit at Rex Hospital.
CITY, STATE, ZIP:___________________________________________________ STARTING TIME PREFERENCE:_____________ HANDICAP:_ ________________
q CHECK HERE IF SENIOR AND DESIRE TO COMPETE IN THIS SECTION. You
are eligible if you are 55 years of age or older and would like to play in the Senior’s Division. Seniors who wish to compete for the tournament championship must play from the regular tees. If you plan to have a guest at Saturday night’s dinner, please provide the name of your guest: ____________________________________________________
photo CONTRIBUTED BY Anke Cahoon
Mail entry and $120 fee by June 2 to: Don Jones, Box 1452, Raleigh, NC 27602 If you have any questions, please call: Don Jones: 919-570-8522 (H) or 919-828-4620, ext. 222 (W) SEANC: 800-222-2758 Whispering Pines Pro Shop: 910-949-3000 or 800-334-9536 www.WhisperingPinesNC.com
Motel information
Districts 63 and 68 Join Together for Wellness and Membership District 63 and 68 members assist with the DOT Division 1 Wellness Fair at the Community Center in Chowan County. Approximately 480 DOT employees visited the fair to receive information regarding health issues as well as state employee and DOT specific issues. Eight new SEANC applications were received. Pictured, left to right, are Member Action Coordinator Benny Brigman, District 63 member Marion Drake, Belinda Blake of District 68 and Anke Cahoon of District 63.
• The Country Club of Whispering Pines is a full-service complex with a restaurant, motel, condo units, pool and many other amenities. The motel rooms are $80 per night, including tax, based on double occupancy. For reservations, please call 800-334-9536 or 910-949-3000, ext. 370. • Days Inn, US HWY #1 at Morganton Road, Southern Pines, NC 28988. Rates: $63.75 + T&T breakfast included. For reservations, please call 800-262-5737 or 910-692-8585. • You must make and confirm motel reservations by May 26 to receive the published rates. Be sure to let motel personnel know you are with the SEANC Golf Tournament.
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PHOTO BY TONYA SAMPSON
photo CONTRIBUTED BY cathy fields
m e m be r ac t io n
District 60 Recruitment Event Successful
While waiting for then–candidate Gov. Bev Perdue at a meet and greet event in October, District 24 Chairwoman Cathy Fields, right, and Secretary Anne Smith take a few minutes to speak with Rep. Dewey Hill (D-Columbus) at the Columbus County courthouse in Whiteville.
photo CONTRIBUTED BY Faye Willingham
photo CONTRIBUTED BY Ken Beaver
District 60 held its annual Membership Appreciation Drive on Nov. 12 in the gym of the O’Berry Neuro-Medical Treatment Center. Nearly 200 state employees enjoyed hot dogs, and seven new members were recruited. Treva Brigman, a volunteer member organizer from the SEANC office, was available to assist with questions regarding membership or benefits. Pictured, left to right, are Brigman, new member Marney Dillahay and District 60 Communications Chairwoman Hiawatha Jones.
District 24 Members Show Political Activism
District 10 Cheers up Local Children District 67 Lends a Hand
Craven County Social Services employees Faye Legacy, left, and Paige Muse accept gifts for a foster child from District 67.
On Feb. 2, U.S. Rep. G.K. Butterfield, center, hears what SEANC members have to say about health care in his Wilson office.
On Feb. 16, U.S. Rep. Larry Kissell, far right, welcomes SEANC members to Rockingham.
District 10 members arranged for Santa Claus to visit the Nazareth Children’s Home in Rockwell on Dec. 8. Santa flew in from the North Pole to help District 10 members hand out gifts to the children, sing carols and partake in refreshments. District 10 volunteers and the 75 children all left the event with a smile and extra Christmas spirit.
U.S. Rep. Walter Jones, seated left, listens to SEANC members advocate on behalf of working families in Greensboro on Dec. 30.
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SEANC Members Seek Congressional Support for Working Families By Tony Booe, Member Action Political Coordinator Since December SEANC members from around the state have been hard at work visiting members of the North Carolina congressional delegation, urging them to support issues that affect every working American — health care reform, the Employee Free Choice Act and economic recovery. As most North Carolinians working in state government know, health care is a target during tough economic times. Unless members work together to find a solution, more people will go without the health coverage they need. Without exception, each congressman agreed that something must be done to change the broken system; however, none offered a common solution. In addition to meeting about health care, SEANC members and congressmen discussed the Employee Free Choice Act. This act will ensure that millions of hardworking families will once again see that the wage gap between executives at the very top and employees who provide the majority of skilled and specialized labor shrinks, re-establishing a flourishing middle class that can afford the basic necessities for
a strong and stable work force. Not surprisingly, the majority of North Carolina’s representatives believe that all workers deserve appropriate compensation for quality work and protections from intimidation and retaliation. With a living wage and affordable, quality health care, Americans will be able to work without worry of making ends meet or struggling to get through the day because they cannot afford the medicine to maintain their health. Economic recovery was also on the minds of SEANC members and representatives alike. The members encouraged each House member to support the federal stimulus plan and ensure that North Carolina is not forgotten. At the time of this writing, the United States Senate and House have come to an agreement that earmarks more than $6 billion in funding for North Carolina programs that will stabilize the state budget and keep people working.
Congressmen who received visits included Reps. Brad Miller, David Price, Bob Etheridge, Heath Shuler, G.K. Butterfield, Mel Watt, Larry Kissell, Mike McIntyre and Walter Jones. Join us in educating and urging your congressional representatives to support hardworking families. You can look up your representative and senators by visiting www.house.gov and www.senate.gov. For additional information on health care or the Employee Free Choice Act, please contact SEANC at 800-222-2758. tbooe@seanc.org
U.S. Rep. Brad Miller, center, pledges his support for working families on Jan. 12 in Raleigh.
U.S. Rep. Bob Etheridge, center, meets with members on Dec. 18 in Raleigh to hear their concerns on health care and other issues. On Jan. 16, U.S. Rep. Heath Shuler, third from right, and SEANC members meet in Asheville.
On Jan. 16, U.S. Rep. David Price, third from left, meets with SEANC members in Chapel Hill to discuss workers’ rights and the economy.
U.S. Rep. Mel Watt, center, greets SEANC members in his Charlotte office on Jan. 29.
SEANC members meet with staff of U.S. Rep. Mike McIntyre in Fayetteville in December.
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PHOTO BY SANDY PENDERGRAFT
photo CONTRIBUTED BY Melody hogg
m e m be r ac t io n
District 58 Donates Bicycle
District 43 Sponsors an Angel Tree
District 58 Chairman Eddie Brogden, left, and Treasurer Larry Jones, right, present a bicycle to Tony Braswell, center, at Christmas. Braswell was walking to his job at Wayne Opportunity Center in Goldsboro each day and said he truly appreciated District 58’s thoughtful and generous gift.
District 43 members stand beside a Christmas tree surrounded with presents donated by DMV employees and District 43 members for Angel Tree families. The tree was located in the lobby of a Raleigh DMV building.
District 65 to Host Third Annual Golf Tournament • Thursday, June 4 • Ayden Golf and Country Club • 1:00 p.m. Shotgun Start • $ 60 per person – includes green and cart fees and boxed lunch To sponsor, contact Del Kingsland at 252-328-1940 or kingslandd @ecu.edu or Lynn Tuthill at 252-744-3284 or tuthilll@ecu. edu. To register, visit the District 65 bulletin board at www.seanc.org under “Districts,” “Bulletin Boards.”
15 m e m be r ac t io n
Free or Low-Cost E-Filing State Employees Making Less than $40,000 May Qualify
Provided by the North Carolina Department of Revenue photo CONTRIBUTED BY Rhonda Robinson
E-filing is a quick, convenient and secure way to file your income taxes and receive your refunds weeks ahead of paper filers. This year the North Carolina Department of Revenue expects more returns to be filed in April as a result of the new state Earned Income Tax Credit and the change in the due date of corporate returns. While the department is planning for this increase, the time it takes to process returns (and possibly refunds) may be affected. That makes it more important than ever to file electronically, especially if you expect a refund.
District 3 Donates Food to Local Mission
You may qualify for free or low-cost e-filing if you earn less than $40,000. Go to www.dornc.com to find a list of approved companies that offer e-filing and to check the eligibility for free filing.
District 3 donated nonperishable food and $200 to The Shepherd’s Staff in Spruce Pine. The Shepherd’s Staff provides food assistance for those in need. Pictured, left to right, are District 3 members Kathy Howell, Bob Gibbard, Rhonda Robinson, Member Action Coordinator Julie Young, The Shepherd’s Staff board member and Treasurer Faye Edwards, District 3 members Teresa Canton, Reta Greene, Vicky Greene, Janice Smith, Kay Goins and First Vice President Pat Reighard.
You may also visit a Volunteer Income Tax Assistance/Tax Counseling site to take advantage of free tax preparation and e-filing services for people with low-to-moderate incomes. Please call the IRS at 800-829-1040 to find the nearest VITA site.
PHOTO BY ORIE HENRY JR.
For more information, contact the Department of Revenue at 877-252-3052.
District 59 Supports Body of Christ Ministries
photo CONTRIBUTED BY HENRY BELADA
PHOTO BY JENNIFER FREW, COURTESY OF THE MORGANTON NEWS HERALD
District 59 helps provide food and personnel to support the outreach ministry of a local church group. This is the third year they have helped to provide hot and healthy meals to residents of Poplar Street Apartments in Goldsboro. Pictured, left to right, are Donald Lewis, Pastor Paul Sherard Jr., Norma Green, Miriam Henry and Marlene Spidell.
District 7 Donates Juice to Ministry District 7 member Henry Belada donates 52 bottles of juice to the Burke United Christian Charities Ministries on Nov. 24. The bottles were extras from the district’s Nov. 12 membership drive at J. Iverson Riddle Development Center.
Districts Join Together for Annual Christmas Parade Districts 5, 6 and 7 participated in the 34th Annual J. Iverson Riddle Development Center Christmas Parade in Morganton on Dec. 4.
16 The SEANC Web site is lonely without you. Go to www.seanc.org for: u Updates on legislation affecting state
employees and retirees u SEANC’s latest news headlines u Low-cost insurance programs u Member discount directory u Calendar of events u Contacts for your local district u SEANC store
SEANC Conference Rooms Conference rooms for up to 100 people are available for rent at the SEANC Central Office for individuals, organizations and companies. A daily fee of $150 per room per weekday includes a professional business environment with audiovisual equipment, access to a food preparation area and room arrangement to suit your needs. Conference rooms A and B can be combined into one large room for $300 per weekday. (1) Mitch Leonard Conference Room A, 859 sq. ft. (2) Mitch Leonard Conference Room B, 859 sq. ft. (3) Conference Room C, 280 sq. ft. Location: 1621 Midtown Place, Raleigh, NC 27609 Let SEANC provide an impressive environment to make your meeting or training session a success! Contact SEANC at 800-222-2758 or meetings@seanc.org to secure your conference room today.
State Employees Association of North Carolina P.O. Drawer 27727 Raleigh, NC 27611
Periodical Postage
PAID Raleigh, NC