April 2021 • Vol. 38, Issue 3
THE
REPORTER
State Employees Association of North Carolina
Cooper’s budget contains pay raises, bonuses, COLAS for retirees Expanding $15/hour minimum wage to school employees also included Gov. Roy Cooper outlined his state budget proposal on March 24 for the next two years that included truly meaningful pay raises for state employees and real cost-of-living adjustments for retirees. All state employees would receive a pay raise and bonus should the proposal pass, setting an optimistic tone for coming negotiations with legislators. However, the proposal does return to an old practice of raising teacher pay far more than most state employees. We don’t think this is fair. Our members have been on the front lines during the pandemic and should not be valued less than other groups. It’s time to end that madness and recognize all public employees for the valuable work they perform. SEANC President Jimmy Davis and Executive Director Ardis Watkins met with Governor Cooper on March 3 to discuss pay raises and cost-of-living adjustments for retirees for all members. Davis and Watkins discussed raising the minimum salary for non-certified public-school and community college
employees to $15 per hour GOV. ROY COOPER’S BUDGET PROPOSAL minimum wage. This group INCLUDED THE FOLLOWING: of employees were left out in 2017 when the state budget Most state employees set the minimum, which • 5% pay raise over two years equates to $31,200 annually. • $1,000 bonus in each of the next two years Thankfully, Gov. Cooper • Funds to address wage compression and recruitment/retention did include this increase for non-certified school personUNC, Community College, and non-certified nel. As we’ve seen in other school personnel state agencies since SEANC • 7.5% pay raise over two years worked with Senator Phil • $4,000 bonus over two years • Minimum $15 wage for non-certified school Berger and Speaker Tim personnel Moore to secure a $15 minimum wage for most Teachers state employees, this is a • More than 10% pay raise over two years • $4,000 bonus over two years necessary and life-changing move for working families. Retirees We will work with the • 2% COLA legislature to extend this $15 • 2% bonus in each of the next two year minimum wage to community college staff as well. It’s important to note that this is just early March with a compromise on the the Governor’s proposal. The House plan to reopen schools. Time will tell and Senate will make their proposals, on whether that spirit holds. and lawmakers will negotiate a final We will continue to work with the budget from those three plans. Legislalegislature and the Governor to ensure tive leaders and the governor signaled that state employees are represented some appetite for bipartisanship in throughout this process.
COVID reimbursement, transparency bill top health plan concerns The State Health Plan (SHP) has spent or plans to spend almost $200 million on testing and treatment for COVID for state employees and retirees in 2020 and 2021. SEANC continues to lobby for that money to be replaced with federal funds. The SHP has spent $72 million dollars on COVID testing and treatment as of December 2020, and is expected to spend an additional $122 million in 2021 on COVID testing and treatment. It was also required by the federal
government to pay for COVID-related items in order to deplete federal funds. SEANC is advocating for CARES Act funds to be used to replenish the State Health Plan. SEANC is also lobbying for passage of House Bill 169, which would give the State Health Plan access to the costs associated with claims it pays. It’s outrageous that the State Health Plan cannot see specifics on how much it pays providers. This bill has bipartisan support and has been called for by State Auditor Beth Wood for more than a decade.
PUBLIC POLICY We’re taking vital steps to protect your
STATE PENSION PLAN By State Treasurer Dale R. Folwell, CPA As keeper of the public purse, I take my obligation to preserve and protect the state pension plan for this and future generations very seriously. The men and women who have provided and continue contributing valuable public services to their fellow North Carolinians deserve no less in their retirement years. For that reason, I am excited to announce that recent changes to the state and local government pension systems put them on track to retire $18.4 billion in unfunded liabilities over the next 12 years. That means that we are taking essential and long-overdue steps to ensure we have enough money in the pension plan to cover the monthly retirement checks we have promised to deliver without fail. The governing boards of the Teachers’ and State Employees’ Retirement System and the Local Governmental Employees’ Retirement System voted unanimously on Thursday, Jan. 28, to reduce the assumed rate of return on investments from 7% annually to 6.5%, which more accurately reflects actual earnings. What is essential to know is that when the assumed rate of return is set higher than the earnings that are achieved, the deficit increases between pension plan
assets and what is needed to pay future retiree benefits. It is particularly critical to narrow that gap now because people are retiring earlier and living longer, in many cases being retired longer than they worked. Retirees collecting from the pension system now outnumber the active employees paying into the plan. That puts additional pressure on fulfilling payment obligations.
“We are taking essential and long-overdue steps to ensure we have enough money in the pension plan to cover the monthly retirement checks we have promised to deliver without fail.” It is instructive to know that the unrealistically high rate of return assumption hasn’t been achieved on average for the past 20 years. Lowering that goal to a more realistic expectation is part of my administration’s transparent strategy to eliminate unfunded liabilities — that gap between assets available and promises made. At present, the pension plan has nearly $116 billion in assets, but also has more than $18 billion in unfunded liabilities. Still, it is the ninth-largest pool of public money in the country and is
THE
REPORTER
State Employees Association of NC 1621 Midtown Place • Raleigh, NC 27609 919-833-6436 • 800-222-2758 • www.seanc.org
Jonathan Owens, Editor-In-Chief • Beth Dew, Managing Editor
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. ©Copyright 2021 SEANC. All rights reserved.
2
THE REPORTER • April 2021
Treasurer Folwell
one of the best-funded. Meanwhile, many pension plans are fragile or distressed. Some estimates show they have accumulated a $1.55 trillion funding shortfall in 2020. Their average funded ratio is 69.4%, with some much worse than North Carolina’s 87.4% funded level. Because funded status reflects a pension fund’s solvency, you can see that our pension plan is in very good shape compared to most. And we’re determined to keep it that way. That’s why we have lowered the assumed investment return rate three times since I have taken office. I am only the second treasurer in more than 60 years to reduce the rate. Lowering rates of return has now become a national trend, and we are in the forefront. One recent study shows more than 50% of pension plans reduced their investment return assumption since fiscal year 2018. Lowering the projection on investment earnings will require state and local government contributions to the pension plan to be higher than they would have otherwise been. Not lowering the assumed return rate only kicks the can down the road, costing taxpayers more in the long run. So, government employers are in a situation where they either make increased contributions now or pay even more later because the unfunded liabilities will continue increasing. At the Department of State Treasurer, we have committed to taking necessary and robust action now so we never have to tell the more than 950,000 teachers, state and local government employees, firefighters, police officers and other public workers we are not going to be able to continue delivering $554 million a month in richly deserved pension checks.
RETIREE FOCUS Bringing Humana to You webinar events State Health Plan Humana Medicare Advantage Plan Members, please join Humana for a Bringing Humana to You (BH2U) webinar event! These online meetings will be held April - June and they will help you learn more about your Humana Medicare Advantage PPO plan. Humana representatives will share information about various educational topics, how to get involved in activities, and a deeper dive into Humana resources. Information about these events is available on the custom Humana State Health Plan website: our.humana.com/ncshp/additional-information You may also register today for one of the webinars at: huma.na/BH2U.
After registering for a webinar, you will receive a registration BH2U confirmation email April - June with instructions on events how to log into the webinar on the day of the event. If you have questions about your Humana Medicare Advantage PPO Plan, please call the dedicated North Carolina State Health Plan Humana Group Medicare Customer Care team at 1-888-700-2263 (TTY: 711), Monday – Friday, 8 a.m. – 9 p.m. ET.
Humana Medicare Advantage plan members get FREE ACCESS to
health & fitness program SilverSneakers® is a welcoming community of like-minded people who help you stick to your resolutions. Humana Medicare Advantage plan members have free access to SilverSneakers online and in person. Enjoy SilverSneakers Live full-length, virtual classes and workshops. Simply log on to join classes led by SilverSneakers instructors. SilverSneakers On-Demand™ offers 200+ online videos available 24/7. Find workouts for all levels, fall prevention classes, stress management workshops and more.
Use equipment and take classes at any of the thousands of participating locations nationwide or join hiking and walking groups and unique classes at neighborhood locations.
Visit SilverSneakers.com or call 1-888-423-4632 (TTY: 711), Monday – Friday, 8 a.m. to 8 p.m. ET.
2021 RETIREE PAY DATES Date retirement payment is issued. (Date payment is direct deposited or date a check is mailed)
April 23 May 25 June 25
July 23 August 25 September 24
October 25 November 24 December 22
Contact N.C. Retirement Systems at 877-627-3287 with address updates, questions about your retirement check or deductions.
The Reporter, USPS 009-852 (ISSN 1069 2142), is published six times a year in the months of February, April, June, 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 2021
3
From the N.C. DOT
4
THE REPORTER • April 2021
District 18 donated items to Richmond Pines nursing home on Feb. 5, and Hamlet House nursing home on March 2. Pictured is District 18 member Sharron Patterson on the left and a Richmond Pines staff member on the right. Pictured center are District 18 member Dewey Brower, District 18 Chair Lisa Martin-Brower, District 18 member Gwendolyn Pressley and Hamlet House administrator Nat Peterkins.
SUBMITTED BY HIAWATHA JONES
District 28 members participated in a barbecue and fish fry plate fundraiser in November at Central Regional Hospital. The money raised from the event was donated to the District 28 Scholarship Committee.
SUBMITTED BY LAURA OVERSTREET
Twice a month District 60 members donate time and money to the Laundry for Love program which partners with groups, local organizations, individuals and local laundromats to wash clothes for low income to no income individuals. The money donated assists with purchasing wash house cards for the washers and dryer at the laundromat. An anonymous recipient later sent a note to District 60 saying, “We are so grateful that you help us with laundry. When you have to choose between clean clothes and food, it makes it hard to feel normal. District 62 Chairwoman Laura Overstreet and District 62 member Carolyn Nelson presented a $200.00 check on behalf of District 62 for the staff and students at Rachel Freeman School of Engineering in Wilmington on Feb. 3. They also took applications and benefits information for the staff.
District 25 hosted an employee appreciation event for Facililites Operations on Feb. 10 at UNC Chapel Hill. Pictured left to right are Member Services Representatives Dennis Hartley and Celia Wilson, District 25 Chair James Holman and District 25 member Pam Montgomery.
JOHNNY DAVISON
Wanda H. Austin, P.E. CPM, has been promoted to Division 14 engineer, the agency announced in March. “I am excited to accept the opportunity to lead such a great group of NCDOT employees,” Austin said. “NCDOT is a leader in the transportation industry, Wanda Austin and the employees of Division 14 are ready to serve the people of western North Carolina.” As the top highway engineer in Division 14, Austin will oversee planning, construction and maintenance of highway projects in the 10 western most counties. More than 450 employees work under Austin’s supervision on more than 10,000 miles of roads in western North Carolina. “Wanda is a strong engineer and a great role model for our department and women who want to pursue careers in engineering,” said state Transportation Secretary Eric Boyette. “She has worked very hard in her years with the agency and we’re confident she will continue to make lasting contributions to improve the transportation system in western North Carolina.” She is serving a two-year term on the Central Piedmont ASPA board. Austin replaces Brian Burch, P.E., who has been promoted to western deputy chief engineer to oversee seven western divisions.
SUBMITTED BY CELIA WILSON
District 1 member becomes 2nd woman to lead NCDOT highway division
SUBMITTED BY LISA MARTIN
MEMBERS IN ACTION
District 2 Chair Cliff Johnson delivered COVID kits with masks and other items to the CDSA offices in Buncombe and Henderson Counties on Feb. 8.
MEMBER SPOTLIGHT By Jonathan Owens
SEANC Trailblazer: Shirley Bell, 55-year member In February, SEANC celebrated Black History Month by profiling several of the leaders and pioneers in the association’s history. Read more of these profiles at seanc.org. It’s hard to imagine anyone more dedicated to the spirit of public service than Shirley Bell. Bell has spent her entire adult life helping others both in a 40-year career at the N.C. Public Health Lab and through volunteer service on many civic and professional boards and associations. That commitment also made her a trailblazer. She is the first — and currently, the only — African American female ever to be elected president of SEANC, having served a term in the role after being elected in 2001. Bell figured out what she wanted to do with her life while taking a chemistry elective. A 1962 graduate of N.C. Bell in her A&T State University college years at with a degree in N.C. A&T State chemistry, she found her “dream job” in the State Public Health Lab, testing environmental samples from all over the state for harmful radiation levels. It was a position that allowed her to marry her love of science with her commitment to helping people. As radiochemistry lab supervisor, she was afforded the opportunity to travel across the United States in her role as NCPHL Radiochemistry Certification Officer, evaluating other labs receiving samples from the state for radiochemical contaminant testing. “Working in the lab is what I always wanted to do,” she said, “I had opportunities to move up into management, but I stayed in the lab because I was doing what I loved.” Soon after going to work for the state, Bell joined SEANC’s predecessor
organization NCSEA. She worked near the Legislative Building in Downtown Raleigh but didn’t feel she had a voice there until she joined the association. “We were told not to go anywhere near the Legislative Building when they were in session,” she said. She became active in the association to help not only herself but her coworkers. In more than 55 years of membership, she has served in virtually every leadership role at both the state and district levels. She currently serves as District 42 Chairwoman. In her time as president of SEANC, she led an organization far different than the current one. Today there are more African Americans in leadership roles and in the membership as a whole. Still, she doesn’t feel racism hindered her ability to lead as president. “You’re always going to hear catty comments,” Bell said, “There’s always going to be a ‘good ol’ boy’ side of any organization, especially in the South, but I never felt members were outwardly racist toward me.” She attributes her ability to get along with all groups of people to her upbringing in Johnston County. “We were one of two families that had TVs Bell with her brother and sister when I was growing up. The whole community would come over to watch something at the home of the white family or at our house,” she said. “We ate together, and we socialized. I think we don’t do that as we should anymore.” Leading with a quiet, reserved demeanor, Bell has garnered the respect
of her colleagues in the association and across the many other boards on which she serves. For the past 22 years, Bell has been a member of the State Employees’ Credit Union Bell with SECU cat (SECU) Board of Directors, and the SECU Foundation Board of Directors (since its formation), on which she served as chairwoman at one point. She also serves on the Johnston County Board of Elections, serving as secretary. She formerly served on the Board of Trustees of the Teachers’ and State Employees’ Retirement System, The Committee for Recognition of State Employees, Harbor (the safe haven for women and children at risk in Johnston County), and remains active in the local chapter of her sorority – Delta Sigma Theta, Inc., having served two terms as president. She currently serves as secretary at her church, in Clayton. She is one of the few North Carolinians who has received two “Order of the Longleaf Pine” recognitions — the state’s highest civilian honor — for her service at the Public Health Lab and with SECU. “My steps are slower, but my mind remains Past Presidents Chuck Hunt and Len Henderson active,” she said. “I plan to continue being involved in projects as long as I physically and mentally can.” THE REPORTER • April 2021
5
Doug Sutton
Insurance Services Providing quality and affordable insurance to SEANC members for over 40 years. We appreciate doing business with you!
STATE PERSONNEL CASES:
PROTECTING STATE EMPLOYEE RIGHTS Representing State Employees in Grievances, Court of Appeals, and NC Office of Administrative Hearings ■ Disciplinary Appeals ■ Grievances /Just Cause ■ Exempt Designation ■ Health Care Registry
■ Whistleblower Cases ■ Dismissal Appeals ■ Law Enforcement Certification
State employees are good people. But even good people make mistakes — mistakes that violate your rights as a career employee, discriminate against you, or cost you a promotion or job. I’ve practiced law for over 20 years, including 10 years as a Wake County district court judge. I’ve got the experience you need to guide you through your personnel case.
Please call us if we can be of service.
919-836-9993 or Toll Free: 1-800-788-7771 dougsutton@dougsuttonins.com
If you have a grievance, disciplinary appeal, or any state employment matter, call (919) 624-5171 or email me at jennifer@jenniferknoxlaw.com.
The Law Office of Jennifer Knox
4600 Marriott Drive, Suite 200 ■ Raleigh, NC 27612 919-624-5171 ■ www.jenniferknoxlaw.com
Upgrades are in full bloom Your spring refresh starts today. Purchasing Power, a purchase program offered through your organization, helps you rejuvenate your home, inside and out. Get it now. Pay for it all over time—right from your paycheck.
20
% off
your first order
*
Promo code:
21SHINE
Ends 5/15/21
No credit check | Fixed payments | No hidden fees
Get started at SEANC.PurchasingPower.com or call 877-797-5558 * Promo valid online only for 20% off through 5/15/2021 at 11:59 pm PST. First time buyers only. Offer excludes PS5 consoles, Xbox Series X consoles, Xbox Series S consoles, Allstate Protection Plans, Automotive, and Vacations. Offer subject to change and/or end without notice. Go online to purchasingpower.com/exclusions for full details. “A Better Way to Buy” is a trademark, and “Purchasing Power” is a registered trademark, of Purchasing Power, LLC. Other trademarks or registered trademarks used are the property of their respective owners. © 2021 Purchasing Power, LLC. All rights reserved.
6
THE REPORTER • April 2021
Retired recently? SEANC wants to
Recognize you! In this time of work-from-home measures, SEANC understands it is hard to celebrate retiring employees. We would like to help by recognizing any member who has retired during the crisis. If you or a coworker retired during the crisis, we want to know! Go to seanc.org/recentlyretired. Complete the form and give us some details. We will recognize your years of service on our social media platforms!
N
EW
!
Must be an SECU member to apply.
For details, go to www.ncsecu.org. NMLS #430055
Exclusive new benefit for ALL SEANC members, including retirees!
BenExtend
®
Aflac has learned to expect the unexpected. We’d like to think science can stop contagious diseases in their tracks, but outbreaks such as the flu, SARS, COVID-19, have shown that’s not always the case. With hospitalization, critical illness, term life, and counseling benefits included, the Aflac BenExtend product is a well-rounded plan to help protect you and your loved ones from the unexpected. Coverage is guaranteed-issue, which means you may qualify for coverage without having to answer health questions.
Learn more or Enroll!
seanc.org/aflac
(833) 206-3553
THE REPORTER • April 2021
7
Periodical Postage PAID Raleigh, NC 1621 Midtown Place Raleigh, NC 27609
SEANC members, now is the time to show our strength & resilience! A strong SEANC membership means more voices and a larger influence in the legislature. It’s critical for us to talk to our co-workers about the benefits of SEANC membership, especially during this time. We need you NOW to help us grow SEANC membership. Every time you recruit a new member now through April 30, you and the new member will be entered in a drawing to WIN $250. Plus, member recruiters receive $20 for every new member recruited. For more information, contact Lynn Cote at lcote@seanc.org.
Member Resilience + Our Voice = Forward Movement
SEANC RESILIENCE