The Board of Governors met on July 21-22, 2017, at SEANC Headquarters in Raleigh to discuss business important to state employees and retirees. Here are the highlights from the meeting. Highlights Budget passed At the recommendation of the Planning Committee, the Board of Governors approved the SEANC operating budget for 2017-18.
Insurance changes The Insurance Board of Trustees (IBT) recommended new contracts for seven programs after working diligently to obtain the best possible health insurance products for current and future SEANC Members. This was a rigorous task as IBT compared all the products thoroughly that were submitted by each vendor. “I commend the IBT on their efforts as this was not an easy task,” said SEANC President Stanley Drewery. “Rest assured that the members’ best interests were held into account when making these decisions.” The BOG approved the following vendors to offer the following products: • Colonial – Cancer Plan • Colonial – Universal Life Policy • Boston Mutual – Accident Plan • Boston Mutual – Critical Illness Plan • Colonial – Hospital Indemnity Policy • Colonial – Short-Term Disability Plan • Boston Mutual – Whole Life Policy Member Services is currently working on the details surrounding each plan. Once this has been completed, more information will be provided. Please stay tuned as we are excited to provide you these plan offerings. Foot note: Aflac’s contract ended on June 1, 2017, and SEANC is no longer offering their products. As we continue to strive to help our members, we are working with Aflac regarding a solution for current policyholders’ deductions. Once a decision is made regarding this process, policyholders will be notified. 1
Blue Cross Blue Shield presentation on Mission Health Representatives from Blue Cross Blue Shield of North Carolina laid out the details of an ongoing dispute with Mission Health, which operates six hospitals in the western part of the state, in a presentation for the board. The BCBSNC officials contend that Mission Health is already overcharging them for services, and plan to raise prices even more. That cost is passed on to all BCBSNC customers, including members of the State Health Plan. Mission Health chose not to renew its contract with BCBSNC, so as of Oct. 5 all Mission hospitals and facilities will be deemed “out-of-network” for BCBSNC members for all non-emergency care. Members from the West voiced strong concerns about this dispute. Second Vice President Jimmy Davis told the BCBSNC representatives that Mission Hospital had saved his life during a recent health scare. Western Region Representative Cliff Johnson and others echoed similar sentiments. They encouraged BCBSNC to settle this dispute quickly, or the plan members will suffer in the end.
Statewide officer changes The BOG voted to approve Jimmy Davis of District 4 as Second Vice President, a position left vacant when Darius McLaurin moved up to First Vice President. Former First Vice President Gloria Evans vacated the First VP post to join the SEANC staff as the Member Relations Representative for the East. Both McLaurin and Davis were sworn in to their new positions by Parliamentarian Kim Martin at the meeting. Pres. Drewery launches Fallen Members Benevolence Fund President Stanley Drewery announced that collecting funds for the creation of a Fallen Member Benevolence Fund would be the community service project at convention. The fund will be used to help the families of members who have lost their lives on the job. He has charged Past President Linda Rouse Sutton and her Connections Committee with creating criteria and guidelines for the fund.
Bonding insurance for districts Director of Operations Chuck Stone reported to the board on bonding options for districts. A Request for Proposals (RFP) was issued for quotes to bond the leadership in each district and the statewide officers. One company issued a quote, with two options: • Option 1: Coverage of $50,000 per person and $150,000 maximum per district for three officers by position title. o Cost: $250 per person, or $750 per district. o 8 districts would best be served by this option. • Option 2: Coverage of $25,000 per person and $75,000 maximum per district for three officers by position title. o Cost: $125 per person, or $375 per district. o 23 districts would be adequately covered by Option 2 BOG members decided to take the information back to their districts for discussion before voting on a plan.
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Reports
Executive Director’s Report Executive Director Mitch Leonard reviewed the recently completed General Assembly Long Session. As part of the state budget, state employees will receive a $1,000 pay increase, which should be reflected in the July paychecks at the end of the month. The three extra days of bonus leave should be available to use as well. Retirees will begin receiving the increase from a 1-percent cost-of-living adjustment in their next pension check as well. Leonard commended the SEANC lobbying staff for holding off legislation to take away SEANC’s dues deduction abilities, and for pushing bills for a $2,400 pay raise and a 2-percent COLA during the session. Without these bills, filed by Republican Reps. Chris Malone and Jonathan Jordan, Leonard said there’s no doubt in his mind that the raises and COLA in the final budget would have been much smaller. He continued to emphasize the importance of switching members to bank draft. The dues deduction bill is still alive and can pass the House in the upcoming special sessions in August, September or November, as well as next year’s short session. Please ask your members to go to apo.seanc.org to switch. The new state budget includes a section that ends retiree health care for new hires beginning in 2021. This is disappointing, but it also means we have time to work on a solution with State Treasurer Dale Folwell. The two strongest candidates for the vacant Chief Operating Officer position have declined offers, partly due to the uncertainty associated with the Executive Director position. Instead, Leonard will look to contract human resources services in the near future and allow a new director to hire the COO. SEANC is looking at new ways to spread its message through traditional and digital advertising. The company that produces football and basketball broadcasts for UNC and N.C. State has approached us about possible opportunities. We are also investing more in targeted Facebook ads. Leonard said he has been pleasantly surprised that membership has held strong thus far through the dues increase. We’ve only had around 700 cancellations, when we were expecting thousands. Convention Update The 34th Annual SEANC Convention is scheduled for Sept. 6-9 at the Koury Convention Center in Greensboro. This year’s theme is “Take the Leap.” Meetings and Convention Planner Alicia Miller reported that Pres. Drewery has selected the creation of a Fallen Member Benevolence Fund as the community service project. Deadlines: • July 28 – District Delegate Registration/Rooming Lists due (Do not call the hotel for changes. Call Alicia Miller at the SEANC Office.) • Aug. 11 – Banquet RSVP and ticket sales deadline (to date have not received any request for Thurs or Sat night events) • Aug. 25 – Money due for ticket sales and district tables • Aug. 30 – Delegate Add/Change deadline
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Treasurer’s Report General Treasurer Chevella Thomas reported that SEANC’s finances are on track to meet projections for the fiscal year. Audit Chairman Keith Renner reported that the committee is still finalizing candidates for three-year terms at the convention.
Awards Pres. Drewery announced that Marie Tate will be taking over as Chairwoman for the committee. Tate reported that the committee will hold judging on Aug. 2-3 at the SEANC Central Office. Benevolence Chairwoman Deborah Fleming reported that the deadline to submit photos for the memorial presentation at convention is Aug. 15. You can submit photos and information online at the SEANC Convention website: www.seanc.org/the-34thannual-seanc-convention. Scroll down and click on “Remembrance Form” to submit. Bylaws Newly appointed Bylaws Chairman Cliff Brown announced that the committee met on July 19 to review bylaws changes submitted by districts to convention. A total of 21 bylaws changes will be voted on at convention. Brown reviewed each with the board and asked that each chairperson review them with their delegates. Each delegate will receive a packet with all of the proposed changes at convention.
Connections Chairwoman Linda Rouse Sutton reported that the committee met on June 29 to discuss possible criteria for the Fallen Members Benevolence Fund that Pres. Drewery plans to create. She hopes to draft criteria developed for the Board of Governors’ approval after convention. Emerging Leaders Chairwoman Emily Jones reported that the committee has sponsored a lane and would participate in the Scholarship Bowl-a-thon later on Saturday. “Leap into Leadership” is the theme for the Emerging Leaders Luncheon at convention, and Past President Charles Johnson will be the guest speaker. The committee will also participate in New Delegate Training at convention and plans to sponsor and participate in the #hashtaglunchbag movement in September.
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EMPAC Chairman Tony Smith reported that the statewide EMPAC committee will discuss at its next meeting developing an award in memory of Vice Chairwoman Gloria Upperman, who recently passed. The General Assembly will convene on Sept. 6 to take up redistricting. A federal court has called for redistricting hearing on July 27 to determine when the districts will need to be redrawn by and whether a special election will be warranted. EMPAC is currently holding a fundraiser until Friday Night of Convention: • New contributors $3 or more are entered into a drawing for three gift cards: $50, $100 and $150 • Current contributors who raise their contribution by $3 or more are entered into a separate drawing for one of three gift cards: $50, $100 and $150 Smith commented on the need to grow our PAC and make it more powerful, which will have an impact on legislative sessions and our ability to lobby effectively. He highlighted legislators who stood up for state employees and retirees in the long session: • Rep. Chris Malone (R-Wake) – EMPAC did not endorse, but he was the lead sponsor of HB540, a bill to give a $2,400 pay increase to state employees. • Rep. Jonathan Jordan (R-Ashe, Watauga) – did endorse and has been a major champion for us since the election; lead sponsor on COLA bill (HB497) and ran amendment to house budget to split teacher and state employee pay EQUALLY • Rep. Mickey Michaux (D-Durham) – did endorse and ran amendment to house budget for 2-percent COLA instead of one-time money proposed in original house budget • Rep. Darren Jackson (D-Wake) – very supportive of us – endorsed, former legislator of the year – now minority leader and worked on our behalf to hold Democrats together against payroll deduction bill • Rep. Nelson Dollar (R-Wake) – endorsed – worked on our behalf to keep payroll deduction from being heard in Rules Committee. EMPAC’s next meeting is scheduled for Aug. 5. All guests are welcome to attend, however the morning session will be closed in order to receive EMPAC’s audit report. Executive Director Search Committee Chairwoman Martha Fowler reported that the committee is currently preparing a job description for the posting. Once finalized, it will be posted for 15 days some time in the fall. A full committee meeting is planned for Thursday at convention. The committee’s goal is to have a new director in place in January. Mitch Leonard has agreed to stay on as long as necessary.
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Fight for $15 Chairman Wendell Powell introduced two SEIU members who work in health and childcare fields in North Carolina. The two shared their stories of hardship and why they have decided to stand up for better pay and benefits. They asked that all members make plans to attend a demonstration in Durham in September to stand with them.
Insurance Board of Trustees Chairwoman Janice Smith reported that the board had recommendations for changes to seven programs. The matter was discussed in closed session, and then voted on. See item in Highlights section.
Membership Chairman Ron Fields reported that the committee has decided to continue offering a $5 incentive per new member recruited. He challenged BOG members to commit to recruiting 500 new members in August. He also recognized Districts 19, 21, 25, 26, 40, 41, 45, 58, 65 and 70 for having positive membership totals this year.
Member Discount Chairman Dennis Hartley reported that SEANC hasn’t lost any businesses this year, and currently has 3,477 businesses that offer discounts. He also announced that District 4 Chairman Tim Southard is the winner of the most recent contest from the committee. Personnel Manual Review Committee Committee member Keith Renner reported that a meeting is planned for Aug. 29-30.
Planning First Vice President Darius McLaurin reported that the committee met twice and the Five-year Plan subcommittee met once since the last BOG. The Planning Committee approved a budget for 2017-2018, which was then approved by the BOG.
Policy Platform Committee member Betsey Hodges, filling in for Chairman Jim Pressley, reported that the committee met on Thursday before the meeting and will have an all new, improved format for the policy platform at convention this year. Public Relations Committee Chairwoman Hiawatha Jones reported the committee hosted three lobby days during the recent legislative session. She thanked all members who took part, and the staff for its help in coordinating them.
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Retiree Council Chairman Benny Brigman reported that the council met on July 12, with the first order of business being the recognition of the life and service of longtime council member Bob Hopper. The council recommended that a new award, the Bob Hopper Retiree Distinguished Service Award, be created in his honor. The board approved the motion. The board also approved Jamie Robinson to fill Hopper’s vacancy on the council. Brigman announced that there are several openings on the council that will be voted on at convention: • West: Henry Belada of District 5 is running. • Piedmont: Martha Fowler of District 19 is running. • North Central: Patsy Tilley of District 21 is running. • South Central: Laura Overstreet of District 62 is running. • Eastern: Delores Jones of District 56 is running.
Scholarship Chairman Mike Bell reported that the foundation board reviewed over 100 district winners for state-level scholarships, and awarded 48 winners for a total of $39,500. The Scholarship Bowl-a-thon was held immediately following the BOG meeting. Bell thanked corporate sponsors Doug Sutton Insurance, Colonial Life Insurance and Liberty Mutual Insurance, and Districts 9, 10, 12, 17, 39, 56 and 61 for sponsoring lanes. Bell reminded the group that State Employee’s Combined Campaign will start soon, and asked that they consider and encourage members to designate the Scholarship Foundation for pledges of donations using the number 1563. Bell asked board members to track cash raffle tickets closely and bring all unsold tickets to convention. He announced that there were three vacancies on the board without candidates – the West, Piedmont and North Central. Two board members have announced their intentions to seek another term – Sherry Dodge in the East and Margaret Reader in the South Central. Standards Review Chairwoman Tara Minter reported that the committee met on June 20 and July 11 to revise the SEANC Operations Manual. Revisions were completed. The BOG will receive the revised manual along with a summary of the changes after the July meeting. Training Chairman Steve Lawson reported that District Chairperson and Treasurer training will be held Aug. 9-10 at Camp Caraway. All districts should participate. There will also be a New Delegate Orientation at the convention this year. It is scheduled for 10:30 a.m. on Sept.7 in the Carolina Room.
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Votes PASSED – A motion to approve Jimmy Davis as the Interim Second Vice President to carry out the term vacated by Darius McLaurin through the end of September. McLaurin moved to the First Vice President position per the SEANC Bylaws.
PASSED – A motion to approve policy that no SEANC funds, including any funds from any district account, shall be used for the purchase of alcoholic beverages. PASSED – A motion to approve the proposed 2017–2018 budget as presented.
PASSED – A motion to approve the recommendation from the Retiree Council to establish the Bob Hopper Retiree Distinguished Service Award. Announcements: • Darius McLaurin announced that he will run for 1st Vice President. • Jimmy Davis announced that he will run for 2nd Vice President. • Steve Lawson announced that he will run for Piedmont Regional Representative. • Kirk Montgomery announced that he will run for Piedmont Regional Representative. • Cliff Johnson announced that he will run for Western Regional Representative. • Mike Gould announced that he will run for North Central Regional Representative.
Next meeting: Sept. 6 (Pre-Convention in Greensboro)
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