February 2019 • Vol. 37, Issue 2
THE
REPORTER
State Employees Association of North Carolina
SEANC offers ways to make prisons safer The Select Committee on Prison Reform wrapped up almost two years of work in January by issuing a report calling for sweeping changes to make our prisons safer for employees. The report, titled “From the Inside: A SEANC Examination of N.C. Correctional Issues,” is based on feedback from correctional personnel shared online and through forums held in every region of the state. We also conducted an online survey that received 621 responses from correctional employees. “We aim to develop commonsense reform proposals to mitigate potential violence,” said SEANC President Jimmy Davis in a letter in the report. “We cannot undo the tragedies that have occurred, but we can take meaningful steps to allow our correctional personnel to work in safe, supportive environments, and provide a space to make their concerns known, heard, and ultimately, addressed.” On April 26, 2017, Sgt. Meggan Callahan, a correctional officer at Bertie Correctional Institution, was brutally murdered by an inmate wielding a fire
extinguisher. In October 2017 (less than six months later), four correctional personnel — Veronica Darden, Justin Smith, Wendy Shannon and Geoffrey Howe — were murdered at Pasquotank Correctional Institution in a failed escape attempt originating in the facility’s sewing plant. Eight additional personnel were injured in the attack. At the time of Sgt. Callahan’s death, Bertie Correctional was 20 percent understaffed. At the time the escape attempt occurred, Pasquotank Correctional was understaffed by 28 percent. Following these horrific acts of violence, then SEANC President Stanley Drewery created the committee of active and retired SEANC members who work in the Department of Public Safety to propose reforms from the officers on the inside. Deborah Harney of Cameron, an active DPS employee, served as chairwoman. “In this report we are offering real solutions as our employees on the inside see them — the truth about the state of
our prisons,” Harney said. “Our prisons are unsafe, and our prison personnel and taxpayers deserve much better.”
SOLUTIONS from the INSIDE The following is a list of recommendations made by the SEANC Select Committee on Prison Reform on ways to improve safety at our prisons. Read the whole report online at seanc.org/prisonreform. For the Legislature
• Address understaffing • Restore the Department of Corrections • Law enforcement benefits for certified correctional personnel • Increased penalties for assault on prison personnel • Insist that District Attorneys prosecute inmates who attack officers
For the Department
• Revise the formula for staffing needs • Implement streamlined, concise, consistent policies • Re-evaluate the hiring process • Invest in facilities and updated equipment • Offer comprehensive training
For the Employees
• Take pride in profession • Be loyal to each other • Take care of equipment • Engage in positive self-care
Fresh faces, familiar leaders as General Assembly opens 2019 session The 2019 General Assembly convened on Jan. 9 for an organizational session and to swear in new members, and then returned on Jan. 30 for the start of the long session. The new legislature has a decidedly
In This Issue 2 3 4-5 7 8
Public Policy Retiree Focus Members in Action 2018 in Review Scholarship
different make-up than its predecessor. The most notable change is that the Republicans no longer have veto-proof supermajorities in the House or the Senate. Rep. Tim Moore won re-election as Speaker of the House and Sen. Phil Berger was re-elected Senate President Pro Tempore. This promises to be a busy session for state employee and retiree issues. SEANC expects pushback on State Treasurer Dale Folwell’s proposal to cut reimbursement rates to hospitals from the State Health
Plan, a move that will save plan members and taxpayers millions of dollars. We also will roll out our suggestions for needed reforms to our prisons. And of course, issues such as the state budget, retirement security and worker rights will be at the forefront throughout the session as well. Be sure to like SEANC’s Facebook page and follow us on Twitter for breaking news throughout the session, and be ready to act when we ask for your help! If you haven’t already, text the word SEANC to 50457 to sign up for text alerts!
PUBLIC POLICY The State Health Plan's Clear Pricing Project Clear Pricing, Lower Cost, More Power in Your Hands
By State Treasurer Dale Folwell
T
he State Health Plan has announced a bold new strategy called the Clear Pricing Project that changes the way we pay medical providers and hospitals for the services they provide to the Plan’s more than 727,000 members. Beginning Jan. 1, 2020, the Plan will pay providers based on a percentage above Medicare, plus an average profit of 77 percent. Medicare provides a standard reimbursement rate that is transparent and adjusts for differences such as location. This will allow the Plan to move away from how it currently pays providers and treat the Plan like a government payer instead of a commercial payer. Seven years ago, SEANC proposed a similar strategy as a way to reduce costs and provide clearer pricing for members. This effort will provide an approximately 80 percent increase in reimbursements for most independent primary care providers, mental health providers and some critical access hospitals located in rural areas.
Why is the State Health Plan Doing This? The Clear Pricing Project is part of a broader effort to keep rising health costs under control while promoting transparency, affordability and quality care. For decades, the Plan has used Blue Cross and Blue Shield of North Carolina’s (BCBSNC) commercial network of providers. State Treasurer Dale R. Folwell, CPA BCBSNC and medical providers consider their fee schedules (what they charge the Plan) to be confidential. In fact, when we asked the state hospital, UNC Healthcare, to tell us how much the Plan pays they sent us over 150 pages of blacked-out documents. In other words, they’ll tell us what they charge for medical services, but not how much we’re supposed to pay. It’s like grocery shopping at a store that doesn’t list its prices, and you don’t know how much you owe until you check out.
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 • Amanda Wise, Associate 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 2018 SEANC. All rights reserved.
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THE REPORTER • February 2019
How Can YOU Help? The next time you are in a provider’s office, tell them that you want them to treat the people who teach their children, protect them from criminals, pave their roads and provide other essential government services to be part of the Clear Pricing Project. With your help, we can bring much-needed transparency and affordability to the State Health Plan. When you buy a cup of coffee or a tank of gas, you know the price and value of what you’re consuming. But with health care, the consumer has no idea of the price or value of what they are getting. We want you to have the power to make informed decisions about what you spend for medical services. After all, this is your money.
Will Members See a Savings? Members themselves could save over $60 million in reduced out-ofpocket expenses. That’s more money for you and less money for hospitals and providers. Right now, a starting teacher or state trooper has to work one week out of every month just to afford the family premium on the State Health Plan. The Clear Pricing Project has the potential to generate savings of $300 million, which would allow the Plan to reduce premiums and make health care more affordable for public workers and their families.
RETIREE FOCUS RETIREES: Tax season is coming. Here's what you need to know.
From the N.C. Department of State Treasurer
Each year it’s important to log in to your ORBIT account to review and make any beneficiary and tax withholding changes that you deem necessary. This year it’s especially important to review your tax withholding preferences. Read on to find out what you need to know to wrap up 2018 and prepare for the year ahead.
Your 2018 tax form is now available in ORBIT! Preparing your 2018 taxes? Use ORBIT to access your 1099 or W-2 tax forms online now. Paper versions of these documents will be mailed out to the address on file with the retirement system. If you decide to wait for your paper tax form, please be sure to allow 7-10 business days to receive the form by mail.
Tax withholding defaults and rates are changing in 2019. Please update your preferences. • State Taxes: Unless you specify a monthly withholding rate or amount for state taxes, your pension account will default to the rate of “single” with zero allowances. This means that more money may be deducted from your benefit payment each month if you do not log in to ORBIT and designate your withholding preferences. If you have already designated a withholding preference or are exempt from paying state taxes, no action is required.
https://orbit.myncretirement.com • Federal Taxes: Unless you specify a monthly withholding rate or amount for federal taxes, your pension account will default to the rate of “married” with three allowances. If you have already designated a withholding preference, no action is required. The IRS is recommending that retirees conduct a “paycheck checkup” to make sure they are paying enough tax during the year by using the withholding calculator located on the IRS website. Though primarily designed for employees who receive wages, this online tool can also help those who receive pension and annuity payments on a regular schedule.
Retiree Council Scholarship Program The SEANC Retiree Council Scholarship is open to retired members' grandchildren. Applications must be submitted to the district chairperson by April 15, 2019. The Retiree Council will award two $500 scholarships in each region to members' grandchildren, one in the merit category and the other in the financial aid category. Applications are available online at seanc.org/retireecouncil-scholarship-program.
Set your tax withholding preferences in ORBIT today! You can log in to ORBIT at any time to start, change or stop the federal and/or North Carolina state tax withheld from your benefit payment. The sooner you review your withholding settings, the sooner you can feel confident that your tax withholding preferences are being honored.
The Reporter, USPS 009-852 (ISSN 1069 2142), is published six times a year in the months of February, April, May, July, September and November for $2.50 per year, per member, by the State Employees Association of North Carolina, Inc., 1621 Midtown Place, Raleigh, NC 27609. Periodicals postage paid at Raleigh and additional offices. POSTMASTER, Send address changes to: THE REPORTER, 1621 Midtown Place, Raleigh, NC 27609
TAX DEDUCTION NOTIFICATION Federal law requires SEANC to provide all members with a written estimate of what portion of membership dues goes to lobbying and political expenses. The majority of dues paid by SEANC members who are current state employees is allowable as an “employee business expense” under federal income tax. However, the part of the dues that SEANC uses for political and lobbying purposes is not tax deductible. For the tax year 2018, the nondeductible political action/lobbying amount is $0.98 per month. The same federal law requires SEANC to give its members an estimate of 2019’s political action lobbying expenses that are paid from dues. The anticipated figure for the 2019 tax year is $0.99 per month. Members are encouraged to consult a tax professional about individual tax returns and liability.
THE REPORTER • February 2019
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During the District 42 membership drive on Oct. 25 at the Division of Employment Security in Raleigh, the district sponsored $50 gift card drawings for new members and members who brought non-members who joined that day. Eleven new members were recruited! Pictured are the drawing winners Teri Dowd, Vicky Fogg, District 42 Chairwoman Shirley Bell and Asha Harris.
SUBMITTED BY ALTHEA JONES
SUBMITTED BY ALTHEA JONES
SEANC membership appreciation at Cherry Hospital. District 59 members and SEANC staff working together equals success!
District 59 sponsored their annual holiday party for Poplar Street Apartment residents. Attendants enjoyed a catered meal, played Christmas games and were given gifts. Pictured are District 59 members Orie Henry Jr., Althea Jones, Lorice Worrells, District Chairwoman Kathy Merritt, District 59 members Carolyn Sutton and Brenda Smith.
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THE REPORTER • February 2019
Also, during the holiday season, District 59 gave food boxes to ten families at the soup kitchen in Kinston. Pictured holding a food box are District 59 members John Miller and Shirley Artis.
District 10 hosted their 11th annual Christmas event at Nazareth Children's Hospital on Dec. 12. Santa (member James Bigsby) gave presents to all the children, lunch was provided, and carols were sung.
SUBMITTED BY CLIFF JOHNSON
SUBMITTED BY ALTHEA JONES
SUBMITTED BY DENNIS HARTLEY
District 42 members (pictured above) Shirley Ballard, Ann France and Tralene Williams volunteered on Nov. 18 in Raleigh at the Come Together for the Coast community lunch to raise funds for Hurricane Florence recovery. Pictured at left, Gov. Roy Cooper takes a moment to smile for the camera.
SUBMITTED BY CELIA WILSON
SUBMITTED BY SHIRLEY BALLARD
MEMBERS IN ACTION
District 2 member Cliff Johnson (left) and District 2 Chairman Bill Danielson (far right) delivered cookies and fruit to three DPS facilities and two DHHS facilities for approximately 500 personnel working on Christmas Eve and Christmas Day.
MARK DEARMON
MEMBERS IN ACTION
JOHNNY DAVISON
On Oct. 24, SEANC sponsored a membership event at J. Iverson Riddle Development Center (JIRDC) in Morganton. SEANC and District 7 provided Kentucky Fried Chicken meal boxes for the JIRDC staff.
SUBMITTED BY HENRY BELADA
Once a month District 60 members gather at The Washington House in Goldsboro to wash clothes and bedding for individuals and/or families living with financial challenges. The Washington House Laundry for Love initiative offers health, hygiene, economic and relational well being to each person through networking and friendship. Pictured left to right are District 60 members Comatha Johnson, Lloyd Kline, District 60 Chairwoman Hiawatha Jones, District 60 members Rose Cauthen Dionne Johnson and Debi Artis who volunteered on Oct. 25.
J. Iverson Riddle Developmental Center staff and District 7 members donated eight cooked turkeys, stuffing and broth to Burke United Christian Ministries and donated two frozen turkeys and three chickens to the food pantry for Thanksgiving. Pictured are District 7 Chairman Henry Belada, member Barbara Kennell and her husband, Mark.
WALTON JONES
SUBMITTED BY HIAWATHA JONES
Department of Public Safety (DPS) personnel were given the opportunity to meet SEANC officers at a Meet and Greet on Oct. 24. As guest speaker, President Jimmy Davis highlighted the Prison Reform Committee, the work being accomplished regarding prison safety, the importance of staff retention, and asked for input from the audience. A brief remembrance service was also held for the five fallen DPS employees.
District 17 hosted a retirement conference on Dec. 3 at the Kernodle Center in Burlington. State Treasurer Dale Folwell, state legislators, SEANC executive committee members and SEANC Executive Director Robert Broome were on hand to answer questions. Pictured are Rep. Dennis Riddell (R-Alamance), Executive Director Robert Broome and Rep. Stephen Ross (R-Alamance).
THE REPORTER • February 2019
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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 State employees are good people. But Grievances, Court of Appeals, and even good people make mistakes NC Office of Administrative Hearings mistakes that violate your rights as a career employee, discriminate against you, or cost you a promotion or job. ■
■ ■ ■ ■ ■ ■
Disciplinary Appeals Grievances / Just Cause Exempt Designation Health Care Registry Whistleblower Cases Dismissal Appeals Law Enforcement Certification
If you have a grievance, disciplinary appeal, or any state employment matter, call (919) 865-2572 or email me at michael@mbyrnelawnc.com. Learn how I put 20 years of experience and consistent success in state personnel cases to work for you - when your rights are on the line.
Please call us if we can be of service.
919-836-9993 or Toll Free: 1-800-788-7771 dougsutton@dougsuttonins.com
My practice is restricted to state personnel disciplinary and licensing matters. I have litigated personnel cases in the Office of Administrative Hearings since the 1990s.
LAW OFFICES OF MICHAEL C. BYRNE WAC H OV I A C A PI T O L C E N T E R , S U I T E 113 0 F AY E T T E V I L L E S T R E E T, R A L E I G H , N C 2 76 01
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sign up online & start shopping! www.SEANC.PurchasingPower.com Eligibility requirements apply. See site for details. *Promo valid online only for 20% off through 3/15/19 at 11:59 pm PST. First time buyers only. Offer excludes select New Product Releases, Brand & Product Specials, Square Trade Warranties, Automotive, Vacations, Travel Vouchers, Doorbusters and Flash Sale items. Promo code must be entered at time of checkout for discount to be applied. Only one promo code may be used per order. Promo code cannot be applied to previous purchases or combined with other offers. Offered discount applies to cost of products only, not applicable to warranty upgrades or other fees. Spend total is based on cost of products only, and does not include shipping, taxes, installation or other fees. Products and pricing are available while supplies last and are subject to change without notice, so call or go online for the latest offering. Individual eligibility requirements and spending limits may apply. See site for 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. © 2019 Purchasing Power, LLC. All rights reserved.
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THE REPORTER • February 2019
Year in Revew Year in Revew Year in Revew
appreciate the past year. From January to December, we have As 2018hard comes to a close, want tothe take a moment worked to improve andwe enhance lives of state to employees As 2018 comes to a close, we want to take a moment appreciate the past year. From January to December, we have and retirees. Thank you for your unwavering support. to appreciate thetopast From January to December, wetoemployees have worked improve andwe enhance lives of state As 2018hard comes to year. a close, want tothe take a moment worked hard to improve and enhance the lives of state employees and retirees. Thank you for your unwavering support. appreciate the past year. From January to December, we have As 2018 comes ayou close, we want to take asupport. moment and retirees. for your unwavering worked hardThank to to improve and enhance the lives of statetoemployees appreciate the past year. From January to December, have and2018 retirees. Thank you forwe your unwavering support.we As comes to a close, want to take a moment to worked hard to improve and enhance the lives of state employees appreciate the past year. From January to December, we have and retirees. Thank you for your unwavering support. worked hard to improve and enhance the lives of state employees As 2019 begins, we want to take a moment to appreciate last year. From January to December, we worked and retirees. Thank you for your unwavering support.
2018 IN REVIEW
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♦ ♦ ♦
Dear SEANC Family, You were right there when it mattered most with your help and support. You all reached out and gave of your generous hearts. And you made more of a difference than you even realized. Thank you sincerely, District 61 member Roxanne D.
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Periodical Postage PAID Raleigh, NC 1621 Midtown Place Raleigh, NC 27609
Scholarship Applications Now Available!
Deadline is April 15 to apply for annual SEANC awards Are you a SEANC member going to college? Do you have a son, daughter, legally adopted grandchild or a spouse going to college? Do you want help paying high tuition, room and board and even book bills? Then apply today for a scholarship from the SEANC Scholarship Foundation. Now is the time to work on your application for the 2019-20 academic year. Last year, the SEANC Scholarship Foundation and SEANC’s districts gave out more than $100,000 to help members, their spouses and their dependents attend either two- or four-year institutions. This year, you or somebody in your family could be one of those deserving winners! An application must be turned in to your district scholarship chairperson postmarked no later than April 15. To find an application and your district’s scholarship chairperson, visit seanc.org/scholarship. The scholarships awarded by the SEANC Scholarship Foundation and the individual districts are one of the association’s largest benefits for members. For more information, visit seanc.org/scholarship or contact Phyllis Perry at (919) 833-6436.
Choose from Three Categories In addition to the local scholarships offered by the districts, the SEANC Scholarship Foundation offers funding assistance in three categories. Category 1 — Financial Need Winners are selected based on academic performance (40%), financial need (30%), community involvement (10%), personal statement (10%) and recommendations (10%). Category 2 — Merit Winners are selected based on academic performance (70%), community involvement (10%), personal statement (10%) and recommendations (10%). Category 3 — Member-Only Winners are selected based on recommendations (30%), SEANC service (20%), career objectives (20%), personal statement (20%) and community involvement (10%).
Apply Today! Applications for SEANC's scholarships are available online at seanc.org/scholarship.