STR ONGER CSEA NEWS Local 2001 TOGETHER The Voice of Connecticut’s Public Service Employees & Retirees CSEA Members in Action P-4 members pose for a group shot after testifying on DOT’s budget and the need to reduce the Department’s use of expensive outside consultants CSEA members have been on the move at the capitol over the past month, testifying before committees making decisions on both bills and budgets that affect our work. There’s strength in numbers and we’re making a big impression as CSEA members have submitted over 60 pieces of testimony so far this legislative session. P-4 members have been especially active this year, focusing on budgetary issues affecting their departments, especially the state’s overuse of expensive outside consultants and short staffing. The General Assembly committee in which a bill is introduced is known as the committee of cognizance. These committees introduce bills, hold public hearings, and then have to pass bills out of committee prior to what is known as a committee’s joint favorable deadline. In most cases, bills Continued on page 4 Municipal Members Develop Agenda On Saturday, February 28th, memberleaders from municipal units across the state came to CSEA Headquarters in Hartford to help chart a union agenda for Connecticut municipal employees. The group did not have difficulty identifying the key components of that agenda. Our municipal members want what all workers want and deserve; that is, good jobs with fair compensation and the kind of benefits that support and sustain our families. In other words, we want: • Fair compensation that reflects the work we do • Affordable, effective healthcare coverage • Retirement benefits that we can rely on after a dedicated career • An end to costly, unwise privatization schemes that undermine our job security Healthcare became a major topic of discussion at the meeting. Increasingly, municipalities are dealing with the rising costs of healthcare by forcing our members into high deductible health plans. These plans VOL. 48, NO. 4 CSEA SEIU Local 2001 April, 2015 do the opposite of what a good health plan should do, in that they actually discourage enrollees from seeing a doctor when they are sick. The group identified “true healthcare pooling,” which is a program that would allow towns to join the state health plan as a solution to the growing problem. Part of CSEA’s legislative agenda includes a “true pooling” bill. The group discussed the importance of organizing municipal members to talk to their legislators about this measure. See the CSEA webpage for more information on this initiative. Stephen Schunder, President of CSEA’s Municipal Council (aka Council 760), said, “We had a great meeting. All too often in the municipal sector, we fight our own battles directly with the town. In order to be successful in achieving our ambitious agenda, municipal workers need to join together. There is strength in numbers. We took a big step forward in building that strength today, but there is a lot more we need to do.” Council 760 will meet next on April 25th, at CSEA, 760 Capitol Ave. in Hartford. Preliminary Agreement Reached With Anthem & UnitedHealth To Administer State Health Plan The state of Connecticut has selected Anthem BlueCross and BlueShield and UnitedHealth Group to administer the state’s selfinsured medical benefits plan for state employees, retirees and their dependents. The preliminary agreements are subject to final negotiations, and the term of the contracts will be up to five years. In anticipation of the Healthcare Cost Containment Committee’s RFP process to select which health care company(s) will provide medical benefits to state retirees and their dependents going forward, the CSEA SEIU Local 2001 retiree council surveyed retired state employees about the health plan and wrote a letter to state comptroller Kevin Lembo informing him of the results. CSEA is advocating for the state to retain Anthem Blue Cross/Blue Shield. The preliminary agreements with Anthem and UnitedHealth to manage the state’s medical plan follow newly renegotiated agreements, some of which are ongoing, for the state’s pharmacy, dental and defined contribution plans on behalf of employees, retirees and dependents. The state’s existing contracts for the medical plan -- that expire June 30 -- are also with Anthem and UnitedHealth. The structure of the benefits and plan designs offered by both are the same; the only substantive difference between the benefit options are network size and pricing offered by each carrier. In addition to providing benefits to state employees, retirees and dependents, the state’s medical plan also covers employees in the probate court system, General Assembly members, former legislators, and other groups, as authorized by statute. The state also offers medical benefits to local municipalities under the Connecticut Partnership Plan, which CSEA helped pass into law and is currently working to expand/ improve. Those municipalities currently include the City of New London and New London Board of Education, Town of Griswold and Griswold Board of Education, Town of Sprague, Town of Voluntown, Uncas Health District, Town of Union, Town of Bozrah,Valley Council of Governments and Waterbury Housing Authority. Visit Our Union’s Website at www.CSEA-CT.com Postmaster: Please forward address changes to: CSEA, 760 CAPITOL AVE., HARTFORD, CT 06106 CSEA NEWS April, 2015 April Meetings & Events COUNCIL 400 DELEGATES: Thursday,April 16, 10:00 AM, CSEA/SEIU Local 2001 Union Hall, 760 Capitol Ave., Hartford. Contact: Retiree Coordinator Hollis Block at (800) 894-9479. CHAPTER 401 (Hartford area): Thursday, April 2, Noon at CSEA Union Headquarters: 760 Capitol Ave., Hartford . Speaker: Nancy Gordon Greene whose topic will be “”Bio-Fedback.”” Contact President Tom Corrigan at (860) 674-8221. Suffield Senior Center, 145 Bridge St, Suffield. Speaker: Hollis Block, CSEA Retiree Coordinator Contact President Amelia Smith 860-687-1848 CHAPTER 411 (Rocky Hill area): Thursday, April 9, 1:00 PM, William J. Pitkin Community Center, 30 Greenfield St., Wethersfield. Speaker: TBD Contact: President Sebastian Puglisi at (860) 529-8336. CHAPTER 412 (Putnam area): Tuesday, April 20, 1:30 PM, Congregational Church of Putnam, 175 Main St, Putnam Speaker: Dr Fredric Barks, Chiropractor Contact: President Don Gladding at (860) 564-9092. CHAPTER 414 (Torrington area): Monday, April 20 , 10-11 am Torrington UConn Campus Extension Building. University Drive,Torrington Speaker: TBA Contact President Karen Pineman 860-354-6727 CHAPTER 402 (Danbury area): Wednesday, April 8, 10:00 AM, United Methodist Church, 5 Clapboard Ridge Rd, Danbury. Speaker: Ben Phillips, CSEA Communications Director Contact: President Dawn Gallagher at (203) 748-2018. CHAPTER 403 (Norwich area): Tuesday, April 14, 1:30 PM Rose City Senior Center, 8 Mahan Dr., Norwich. Speaker: Hart’s Greenhouse Two 25$ gift card and spring giveaway, For more information call President Carol Burgess at 860-859-3641 CHAPTER 404 (Waterbury area): Thursday, April 9, 2:00 PM, Harold Leever Regional Cancer Center, 1075 Chase Parkway (exit 17 off I-84), Waterbury. Speaker: Ben Phillips, CSEA Communications Director Contact: President Ron Chasse at (860) 945-0768. CHAPTER 405 (New Haven area): Wednesday, April. 8, 1:00 PM, Hamden Government Center, 2750 Dixwell Avenue 3rd floor Speakers: TBD Andy Gambardella at (203) 468-7376. CHAPTER 406 (Middletown area): Tuesday, April 14, American Legion Post 75, 58 Bernie O’Rourke Dr., Middletown. Speaker: Joe Serra, State Representative 33rd District Contact: President Joe Formica at (860) 347-4532. CHAPTER 407 (Bridgeport area): Wednesday, April 15, 12:30 PM Social St. Joseph’s of Stratford National Catholic Church, 1300 Stratford Rd., Stratford (on Rt. 113 toward Sikorsky Airport). Speaker: Adrianna Walker, Blue Cross Blue Shield Contact: President Carol Donofrio at (203) 888-2920. CHAPTER 408 (Willimantic area): Wednesday, April 8 1:00 PM, Baptist Church, 945 Storrs Rd, Storrs CT. Speaker: cigna rep Contact: President Betty Gardner at 860-456-1480 CHAPTER 410 (Windsor Locks area): Monday, April 13, 1:00PM Page 2 CHAPTER 415 (Manchester area): Monday, April 23, 1:00 PM, Elks Lodge, 33 Bissell St. Manchester. Speaker: Ben Phillips, CSEA Communications Director Contact: Dorothy Tomlinson at 860-647-1216 CHAPTER 416 (New London area): Tuesday, April, 12:00 PM, Groton Public Library, Speaker: Adrian Walker, Blue Cross Blue Sheild Contact Les Shapiro at 860-442-5256 CHAPTER 417 (Plainville area): Wednesday, April 8 1:00 PM, Church of Our Savior Episcopal Church, 115 West Main St., Plainville. Speaker: Sebastian Puglisi CSEA 400 western Vice President Contact: President Cathy Toscano at (860) 845-2927. CHAPTER 418 (4Cs): Tuesday, April 14, 10:00 AM, Speaker: TBD Contact: President Bill Searle at (860) 745-3692. Chapter 425 (Sun Coast Area) Welcome Back Picnic April 14th 2015, 11am at Phillipe Park in Safety Harbor, FL. shelter #7. Hamburgers & Hot Dogs Provided, Feel Free To Bring A Guests Or A Dessert. Questions call Ursula Bracker, Secretary at 727-848-0089 Chapter 441 (Cape Cod Area) Spring Meeting: April 22, 2015, 9:30am Cape Cod Five Cents Savings Bank (Across from Patriots Mall) 688 Main St. South Dennis MA. Speakers at 10am, Nancy Driscoll CSEA Retiree Liaison and State Insurance Providers. Contact: George Levesque, 508-771-4679 We regret to inform you of the passing of the following members. Beverly Behrendt , Muncie , 9/21/2011 Donald L Gordon , Sierra Vista , 11/15/2014 Virginia T Pyle , Port Stlucie , 11/29/2014 Martin W Breadheft , Englewood , 10/17/2013 Karl E Hammarstrom , Columbia , 11/15/2014 Elizabeth A Robinson , Glastonbury , 12/2/2014 Robert N Brooks , Pompano Beach , 10/31/2013 Edward J King , Kensington , 11/15/2014 John S Roscoe , Cheshire , 12/2/2014 Cleveland Brown , Dalinton , 12/28/2013 Doris M Leffingwell , Oakdale , 11/17/2014 Hazel M Sargent , Somersville , 12/2/2014 Edwin A Brown , Jewett City , 1/23/2014 Louis S Leitkowski , Pt Stlucie , 11/18/2014 Suzanne L Steinberg , Wilton , 12/4/2014 Dennis R Burke , East Haddam , 6/5/2014 Jean Manter , Storrs Mansfield , 11/18/2014 Joseph M Stinson , Waterbury , 12/5/2014 Thomas Cardillo , Palm Coast , 6/12/2014 Laura D Martin , Waterbury , 11/19/2014 Antoinette R Taricani , New Britain , 12/7/2014 Phyllis L Clark , Vernon , 8/15/2014 Linda B Mason , Punta Gorda , 11/20/2014 Anna C Taylor , Ellington , 12/9/2014 William J Dowd , Pineland , 8/30/2014 Dorothea Mcmanamy , Plainville , 11/20/2014 Lynn E Wagner , Naugatuck , 12/10/2014 Henry F Drewniany , Windsor , 9/24/2014 Ralph Meredith , Saint Petersburg , 11/20/2014 Clifford C Walker , Newtown , 12/11/2014 Gloria A Dubeau , North Grosvenorda , 10/20/2014 Alvah L Messina , Norwich , 11/21/2014 Sam Wechter , Coconut Creek , 12/13/2014 Joseph J Mudry , Bristol , 11/21/2014 Gwen Wexler , Killingworth , 12/15/2014 Justine F Pingree , Leominster , 11/25/2014 Edward Wojtusik , Bristol , 12/15/2014 Donald N Porter , Milford , 11/27/2014 Wilbur R. Wood , Meriden , 1/21/2015 Natalie Fournier , Stow , 10/24/2014 Ernest J Gelinas , Surry , 11/10/2014 CSEA NEWS April, 2015 Page 3 CSEA Social Activities Presents: Visit Our Web Site Saturday, June 6, 2015 11am-8pm Find all the essential information about the products and services we have to offer. You can even print a loan application online! Best of all, it’s accessible from your personal computer 24 hours a day, 7 days a week. Only 39.00/person (Children 3 years and younger are free) Free Parking!!! Unlimited Use of ALL RIDES, Shows, Attractions!! (With the exception of the Skycoaster which has an additional cost) BBQ Chicken, Charbroiled Burgers, Grilled Hot Dogs, Veggie Burgers, Baked Beans, Potato Salad, Salad Bar, Fruit Salad, Ice Cream, Beverages www.CSECreditUnion.com DISCOUNT RETURN VOUCHER-- Come Back To Lake Compounce for only $15.00** Trip Sponsored by CSEA/SEIU Local 2001 Social Activities Committee (SAC). For More information call the Local hall at (800) 894-9479 or (860) 951-6614, send email to [email protected] Good Friday, April 3, 2015 Dividend Rates - First Quarter 2015 Dividend Rate Annual Percentage Yield REGULAR SHARES SHARE DRAFTS (Checking) CLUB ACCOUNTS 0.65% 0.25% 0.40% 0.65% 0.25% 0.40% Minimum opening balance $25.00. The annual percentage yield is accurate as of the last dividend declaration date. Rate may change after the account is opened. Fees or other conditions may reduce the earnings on the account. 7 Full Service Offices To Serve You NORWICH Uncas on Thames 401 West Thames St. Norwich, CT 06306 (860) 889-7378 HARTFORD 84 Wadsworth St. Hartford, CT 06106 (860) 522-5388 (Savings) (860) 522-7147 (Loans) NEW HAVEN 1666 Litchfield Turnpike Woodbridge, CT 06525 (203) 397-2949 MIDDLETOWN NEWINGTON STORRS SOUTHBURY P.O. Box 2485 O’Neil Plaza 1244 Storrs Rd. Southbury Training School Middletown, CT 06457 Storrs, CT 06268 2434 Berlin Turnpike P.O. Box 644 (860) 347-0479 (860) 429-9306 Southbury, CT 06488 Newington, CT 06111 (860) 667-7668 (203) 267-7610 Hours: Main Office: Mon-Fri, 9am-4pm Branches: Mon-Fri, 9:30am-4pm Drive-Up Teller (Hartford Only): Mon-Fri, 9am-4pm; Paydays Open Until 5pm Make checks payable to “CSEA Social Activities” and mail to CSEA/SEIU Local 2001, 760 Capitol Ave, Hartford CT 06106 By May 22, 2015 Please call for availability after deadline. STR ONGER Local 2001 TOGETHER CSEA NEWS The Voice of Connecticut’s Public Service Employees & Retirees USPS # 224-100 ISSN # 0273-6055 Published Monthly by CONNECTICUT STATE EMPLOYEES ASSOCIATION Local 2001, Service Employees International Union, CTW, CLC Stephen Anderson..................................................................... President Roland Bishop.......................................................... Secretary/Treasurer David Glidden............................................................ Executive Director Benjamin P. Phillips.......................................... Communications Director Jason P. Webster...................................... Graphic/ Technical Assistance INSERTION DEADLINE: 1st of prior month. MAILING ADDRESS: CSEA/SEIU Local 2001, 760 Capitol Avenue, Hartford, CT 06106; PHONES: (860) 951-6614, toll-free: (800) 894-9479, FAX: (860) 951-3526; INTERNET: www.csea-ct.com. “CSEA NEWS” (USPS 224-100, ISSN 0273-6055) is published monthly for $2.80 per year members, $5.00 per year non-members, by CSEA/SEIU Local 2001, 760 Capitol Ave., Hartford, CT 06106-1263. Periodicals postage paid at Hartford, CT. Postmaster: Send address changes to “CSEA NEWS,” 760 Capitol Ave., Hartford, CT 06106-1263. PRINTED ON RECYCLED PAPER April, 2015 that pass out of committee will be subject to votes in other committees which have overlapping areas of interest. For instance, if a bill appropriates money, no matter what committee in which it was introduced, it will ultimately make its way to the Appropriations Committee for a vote. All bills are either Senate or House bills, and after a bill completes the committee process, it gets sent to its respective chamber for a vote. Committees are now reaching their JF deadlines and there has been a lot of action on CSEA’s priorities. CSEA 2015 Legislative Agenda: • Contractor Transparency: CSEA proposed that invoicing reports of consultants and contractors are placed on transparency. ct.gov or the state contracting portal. Right now, the only way to see the actual payment invoices contractors and consultants are submitting to the state is to travel to a state office in Newington and review paper copies. The Comptroller, while supportive of the underlying concept has expressed some concerns about the resources needed to do this. Given the constraints of the state budget and the lack of resources in the Comptroller’s office, we were unable to forge a compromise. CSEA members will continue to fight for this important layer of transparency in future legislative sessions and will continue conversations with the Comptroller’s office; • Health Claims Data Reporting: CSEA members have fought for years to lower health care costs and improve access to health plans through pooling. At the start of the legislative sessions, we proposed to require all municipalities to submit health care claims data to the Comptroller’s office to provide a more accurate picture of local health care insurance costs. Our proposal was taken up by the Labor and Public Employees Committee as Senate Bill 913. The committee voted in favor of the bill. It is on the Senate calendar and will most likely be sent to another committee for review and a vote; • Paraeducator Serving as Substitutes: Protect the ability of paraeducators to serve as substitutes in the classroom. This proposal was CSEA Social Activities Committee Presents: CAPE COD June 3-5, $275 CSEA NEWS taken up by the Education Committee as House Bill 6968. Unfortunately, this bill will not be moving forward this year as we continue to speak with paraeducators outside of CSEA and work to gain additional support for our proposal; • Law Enforcement Indemnification: Currently, CSEA members who serve as inspectors in the Division of Criminal Justice are excluded from the state’s law enforcement indemnification statute. Senate Bill 1106 in the Judiciary Committee would change that. The bill is not yet in a form members can support – but we are speaking with committee members and working to amend the bill. As of this writing, SB 1106 is awaiting a vote in the Judiciary Committee; and • Union Rights: Collective bargaining rights for State Education Resource Center (SERC) employees. This proposal was taken up by the Labor and Public Employees Committee as Senate Bill 984 and was favorable voted out of committee. Legislation CSEA will be supporting through coalition with other organizations: • Paid Family Medical Leave: As part of the Campaign for Paid Family Leave, CSEA is fighting to create a system of paid family leave in Connecticut. The concept was taken up by the Labor and Public Employees as House Bill 6932 and was favorably voted out of committee; • Low Wages Workers: Require large employers like Walmart to pay their workers a minimum of $15 an hour or pay a fee to the Connecticut General Fund. This concept has been introduced in, both, the Labor and Public Employees Committee as House Bill 6791 and the Human Services Committee as Senate Bill 1044. This bill could generate upwards of $200 million a year in revenue for the state, to say nothing of the impact it will have in increased wages for working men and women. Both versions of the low wage worker bill successfully passed out of their respective committees. Experience A Hyannis Harbor Cruise, Explore Sea Side Towns Of Hyannis And Sandwich, Visit The JFK Museum And Much More. Transportation, Lodging And & 4 Meals Included Pick up points in Waterbury, Winsdsor, and Willington. Page 4 NY Yankees Vs. Detroit Tigers At Yankees Stadium $150 Saturday, June 20th, 2015 7PM game Old Timer’s Day/Willie Randolph Day Ticket Price is $150 pp and will include BBQ Buffet Inside the stadium. Pick Up Times TBD Call 860-951-6614 for more information! Child Care Providers Are Fighting for $15 On Wednesday, March 12, CSEA members Miriam Paredes of Meriden and rJo Winch of Hartford testified at a public hearing before the Connecticut General Assembly’s Human Services Committee in support of Senate Bill 1044. Right now, large, profitable corporations like Walmart and McDonalds pay many of their employees so little that they qualify for public assistance programs. It is wrong to make taxpayers subsidize the low wages of large corporations. SB 1044 gives these large, highly profitable corporations a choice: pay your employees $15 an hour or pay a fee of $1 an hour that the state will use to pay for child care and health care services that working people need to get by. The overwhelming majority of employees who are making these lower Proveedores de cuidado infantil luchan por $15 El miércoles, 12 de marzo, miembros de CSEA Miriam Paredes de Meriden y rJo Winch de Hartford testificaron en una audiencia pública ante el Comité de Servicios Humanos de la Asamblea General de Connecticut, para apoyar el Proyecto de Ley 1044 del Senado. En la actualidad, las grandes corporaciones lucrativas como Walmart y McDonalds les pagan a muchos de sus empleados tan poco que ellos son elegibles para programas de asistencia pública. No está bien que los contribuyentes tengan que subsidiar los bajos sueldos de las grandes corporaciones. SB 1044 les da a estas grandes corporaciones muy lucrativas una opción: paguen a sus empleados $15 por hora o paguen una tarifa de $1 por hora, que el estado utilizará para pagar por el cuidado infantil y los servicios de salud que las personas trabajadoras necesitan para subsistir. wages are adults with families – not teens – and a majority are in households where their low wages are the only source of income. “As a child care provider I pay the subsidy twice. First my taxes subsidize these large corporations, second I subsidize through my own low wages,” said Sister Winch. Despite working hard, 25% of Connecticut households have earnings above the federal poverty level but below what is considered necessary to afford basic needs. These working families need SB1044. As part of a national day of action, on April 15th men and women from throughout Connecticut will meet at the Workers’ Memorial in Bushnell Park in Hartford as part of SEIU’s Fight for $15 Campaign. La abrumadora mayoría de empleados que ganan estos sueldos más bajos son adultos con familias, no adolescentes, y la mayoría vive en hogares donde sus bajos sueldos son la única fuente de ingresos. “Como proveedora de cuidado infantil, pago el subsidio dos veces. Primero mis impuestos subsidian a estas grandes corporaciones, segundo yo subsidio por medio de mi bajo sueldo”, dijo la Hermana Winch. A pesar de trabajar arduamente, el 25% de los hogares en Connecticut ganan ingresos por encima del nivel federal de pobreza, pero por debajo de lo que es considerado necesario para pagar por las necesidades básicas. Estas familias trabajadoras necesitan SB1044. Como parte de un día nacional de acción, el 15 de abril, hombres y mujeres de todo Connecticut se reunirán en Workers’ Memorial, en Bushnell Park, en Hartford, como parte de la campaña “Lucha de SEIU por $15”. CSEA NEWS April, 2015 Page 5 Connecticut’s Economy Needs Higher Wages! William Buhler SEIU/CSEA Legislative Action Co-Chair Low pay puts a drag on Connecticut’s economy. At large retail chains such as McDonalds workers make $9.15 an hour roughly $16,000 a year before taxes. Wages this low make them eligible for food stamps, medicaid and state funded health care. Meanwhile the CEO to worker pay ratio in the fast food industry exceeds 1000 to 1. In effect our taxes are subsidizing the outrageous compensation of those at the top. Corporate profits have never been so good as they are today, but gains have not been shared with employees. Lower paid workers actually have less buying power today than they did 30 years ago. Wages for middle income families have barely risen above inflation. Something needs to be done to shrink the gap between the obscene income of those at the top and the meager wages of those at the front lines. Its about fairness, morality and making Connecticut’s economy work for everyone. Courant’s Proposed “Slight” Readjustment of Benefits An Evaluation By Robert D. Rinker Recently, the Hartford Courant opined on its Editorial pages (March 8, 2015), that “workers are giving back elsewhere.” In order not to be accused of quoting the Courant out of context, I will restate their opinion. “The State needs a quality workforce, which means attracting talented workers and paying them competitively, but not going broke in the process. State workers could help Connecticut break the cycle by agreeing, as part of collective bargaining to slightly readjust their pension and benefit formulas. For example, instead of determining pension payout based on the average of the top three years of salary, make it the top five years. Increase the amount that retirees pay for health benefits. Eliminate overtime payments from pension calculations. Faced with a staggering unfunded liability four years ago, Rhode Island officials, led by Treasurer Gina Raimondo suspended cost-of-living adjustments, raised the retirement ages, moved workers into a hybrid pension plan and reduced future benefits from current state employees.Thought it is still tied up in court, Mr. Raimondo is now the Governor and other states have followed the Rhode Island model in ballooning cost of retirement benefits for public sector workers. Connecticut could use ‘Rhode Island lite.’ Any more ideas?” Once again we are faced with a state budget deficit but it is not hard to understand why. Corporate taxes once accounted for 25% of state revenues, but now cover less than 7% due to tax loopholes. Highly profitable retail chains have also been keeping tax revenue away from the state indirectly, by keeping employee wages flat. These obstructions keep both the state government and resident wage earners without sufficient spending money to expand Connecticut’s economy. Corporate lobbyists claim that if workers’ wages are raised jobs will be lost. The reality is that unless workers’ pay is raised, there will be no reason to hire. Be part of the wages conversation by joining the “Fight for $15” at Bushnell Park in Hartford, April 15 at 4:15 pm. Yes, here are some quick ones and a more detailed analysis: 1. The Hartford Courant editorial page writers should read its newspaper clippings of the sacrifices made by state employees four years ago. 2. State employees made their sacrifice in exchange for job security and retirement security including a pension agreement that will now expire on June 30, 2022. The agreement should not be reopened unless it is to the mutual benefit of the State of Connecticut and its employees. The reopener on the Tier II, IIA, and III breakpoint and its resolution is example of mutual benefit. 3. The State’s unfunded liability has been cut significantly by the agreement, both pension and retiree health insurance. The pension unfunded is projected to be eliminated by 2032. In fact, the administration and SEBAC agreed to increase funding in 2012. 4. Although the Courant believes the current deficit is huge, it is 2015 and not 2011 when the state had its worst deficit in its history, but that does not stop the Courant for wanting to heap upon state employees the worst of concessions that were imposed on Rhode Island state employees unilaterally without the benefit of being collectively bargaining with state employees. Did you know that CSEA has a Facebook page? If you use Facebook, “Like” our page today! SEIU Local 2001 Look For Our Logo! Stronger Together The following is a comparison of the Courant’s “slight” readjustment of benefits with the SEBAC 2011 agreement: Courant proposal – Pension calculation based upon top five years, not top three years. SEBAC 2011 Agreement – New employees after July 1, 2011 will have a top five year average for pension calculation. Courant proposal – Increase the amount retirees pay for health insurance. SEBAC 2011 Agreement – State employees will contribute 3% of their pay into a Retiree Health Insurance Trust Fund for ten years. State is to match the 3% contribution in July 2017. This agreement was result of an on-going demand from SEBAC since 1988 to pre-fund retiree health benefits. The Malloy administration agreed that this was the right course to go for retiree health insurance to ensure it sustainability over the long term. Other SEBAC 2011 agreement is for premium co-shares for early retirees until they reach normal retirement age. Courant proposal – Eliminate overtime payment for pension calculations. SEBAC 2011 Agreement – Restricts mandatory overtime pay of pension calculations to 150% of base pay beginning in July 2015. Continues not non-mandatory overtime cap of 130%. The Courant wants to punish state workers for the understaffing of 24/7 operations like state prisons or for snowplow drivers for extremely harsh winters. If institutions were properly staffed, mandatory overtime would not be an issue. And who do we blame for the weather; I expect that Courant views this as a Union-created event. Courant proposal – Suspended COLA adjustments for pension benefits. SEBAC 2011 agreement – Adjusted the COLA benefit for retirees after October 1, 2011, from “2.5% to 6.5%” to “2% to 7.5%.” This change PS: We’re on twitter too! reflected the lower rate of inflation for the past few years and also protects retirees from periods of high inflation. COLA’s are meant to protect the purchasing power and standard of living of retirees. One should not see their quality of life deteriorate as one gets older. It is why Social Security, one of the best retirement security programs in American’s history, has COLA protections. Courant Proposal – Raise the retirement age. SEBAC 2011 Agreement - Current employees retiring after July 1, 2022 and who were employed prior to July 1, 2011 will see their retirement age rise from 60 and 25 years of service and 62 years of age and 10 years of service to age 63 and 25 years of service and 65 years and 10 ten years ,respectively. These employees had the opportunity to elect to make a small actuarial contribution to maintain the old age and service requirements. New employees after July 1, 2011, will have the higher age requirement for a normal retirement including new hazardous duty employees with age 50 and 20 years of service or 25 years and out. Courant Proposal – Hybrid pension plan and reduce future benefits. SEBAC 2011 Agreement – The maintenance of a defined benefit pension plan with 10 years of vesting service is cheaper for the State and provides for a better benefit that a defined contribution plan, which is what hybrid plan is dressed up to be. State employees have a threelegged stool for retirement; the legs are their defined benefit pension plan, their social security benefits, and their deferred compensation plan. These three income sources along with retiree health insurance afford the career state employee with retirement security, the same security all workers should have in retirement. My friends on the Courant editorial board, this is how you attract and, you forgot this one, retain talented workers, without going broke. CSEA NEWS April, 2015 Page 6 Ignite: Sparking Leadership Conference Who doesn’t love a good CSEA group shot? In early March, nearly 1000 SEIU leaders, including 12 CSEA members and staff, converged on St. Louis for the Ignite: Sparking Leadership conference. The conference was aimed to energize, inspire and train new leaders in the labor movement. Participants took home concepts, skills, ideas, and new tools to use in building a movement strong enough to ensure that everyone has a fair shot at a decent life, and realize SEIU’s overall vision for a just society. Attendees (listed below) were from a wide cross section of our union; • • • • • • Steve Anderson - P4 (Engineering, Scientific and Technical) Council Roland Bishop - P3B (Education Professionals) Council Keryn Felder - P3A (Educational Administrators) Council David Freedman - Council 760 (Municicipal) Queen Freelove - Childcare Council Pat Gaskin - Bus Drivers Council • • • • • Roger Ives - Council 400 (Retirees) Julius Preston - CSC (Corrections Supervisors) Tim Riddle - Paraeducator Council Travis Woodward - P4 Council Staff attendees: Charlie Fabian, Gary Smith Over the course of the four day conference, there were in depth discussions and workshops surrounding our economy, the connections between economic and racial justice, the Fight for $15, and worker power. Conference participants explored the inherent tension in our economy, and how we got to where we are today, with an economy which benefits those in the top 1% rather than middle class workers. In the Public Division meeting held during the conference, participants discussed the attacks Nearly two-thirds of Americans are paid less now than in 2002. Let’s DO SOMETHING about it on April 15. Mary Kay Henry, President SEIU If you listen to some experts, the economy is doing just fine. That may be true for many corporations that are enjoying record profits. But for too many ordinary families, falling wages are a huge problem. In fact, nearly two-thirds of American households earn less money today than they did in 2002. On April 15, people from all walks of life will stand up to fight for jobs and wages that boost our economy and strengthen communities. If you believe that we need to raise wages CSEA’s Queen Freelove, Child Care Provider, addresses the Conference on worker power, and our division’s commitment to the All in This Together for Power (AIT4P) framework adopted by Public Division leaders in at their January meeting. This framework recognizes that the roots of the labor movement and the gains we have made for workers came from hard fought collective action rather than dues deduction, grievances or closed shops. The AIT4P framework also recognizes the brave fast food workers fighting for $15 per hour and a union, who are part of the group of 50 million unrepresented service workers across our country who are paid less than $15 per hour. Finally, the AIT4P framework recognizes that our locals are resilient and creative, and that we need to adapt for changing times so we can thrive in any environment. where one of our top priorities is to pass a low wage worker minimum wage bill that will require large employers such as Walmart and McDonald’s to pay their workers a minimum of $15 per hour or pay a fee to the State which will be used at least in part, to fund childcare provider services. Further, our local has faced continual challenges in our bargaining units from Right-to-Work Foundation backed decertification efforts, and this conference helped strengthen our union’s position in fighting those working to weaken unions. A follow-up meeting with participants is in the works, to discuss the conference and where CSEA goes from here. The conference was timely, since we are now well into a legislative session to have a better future for ourselves, our children and grandchildren, join us. I’m so inspired by the regular people -some who belong to a union, and many who don’t yet -- who are building the Fight for $15 movement. This movement that was started by fastfood cooks and cashiers has exploded to include people who work at Walmart, airport baggage handlers and passenger service attendants, home care providers, child care workers, adjunct college faculty, and other underpaid people who want to create jobs that pay people enough to actually live on. Together, we are fighting for an economy that works for all of us, not just the wealthy few. Powerful CEOs could pay people more, but they simply choose not to. When large, profitable companies attempt to pay as little as they can get away with, even fulltime jobs can pay so little that workers qualify for food stamps. Working moms and dads can’t afford basic needs for their kids. Young people can’t afford to go to school to upgrade their skills. Entire neighborhoods fall behind. When we demand and win a higher floor for wages, we will not help not just individuals and families, but also our communities and the larger economy. Americans will be better off when we make sure we have the right to stick together in unions to speak up for ourselves at work –- to speak out for better pay and a better life -- and that employers can’t take away this right. If one person speaks out, she is ignored. But in SEIU, we know that when many of us stand up together, we are heard. We are taken seriously. We make change happen. April, 2015 CSEA NEWS Savannah, Jekyll Island & Beaufort Page 7 Sep. 27-Oct. 3, $579 Tour Jekyll & St. Simon’s Island, Tour Of Charming Savannah And Much More! Transportation, Lodging And 10 Meals Included Following the news that Anthem had been the victim of the largest cyber attack in history, the company released the following FAQ: Was my information accessed? Anthem is currently conducting an extensive IT Forensic Investigation to determine what members are impacted. We are working around the clock to determine how many people have been impacted and will notify all Anthem members who are impacted through a written communication. NOTE: last month CSEA incorrectly reported that this process had been completed. It is ongoing. Did this impact all lines of Anthem Business? At this point in the investigation, it appears that all product lines are impacted except for those current or former Anthem members who only had coverage for workers compensation, life or disability insurance only. Is my (plan/brand) impacted? The impacted (plan/brand) include Anthem Blue Cross, Anthem Blue Cross and Blue Shield, Blue Cross and Blue Shield of Georgia, Empire Blue Cross and Blue Shield, Amerigroup, Caremore, Unicare, HealthKeepers and Golden West. Initial investigation indicates that the member data accessed included names, dates of birth, member ID/ social security numbers, addresses, phone numbers, email addresses and employment information. Who is responsible for this cyber attack or breach? Anthem is working closely with federal law How can I be sure my personal and health information is safe with Anthem, Inc.? the attacker. When will I receive my letter in the mail? We continue working to identify the members who are impacted. We will begin to mail letters to impacted members in the coming weeks. How can I sign up for credit monitoring/ identity protection services? All impacted members, former members and impacted affiliated plan members will receive notice via mail which will advise them of the protections being offered. Impacted members may also sign up via AnthemFacts.com. resolution of cyber attacks. We will work any further vulnerabilities and work to strengthen security. Does this impact Blue Cross and Blue Shield plans not owned by Anthem? No, our current investigation shows the information accessed did not include credit card numbers or banking info. Members who may have been impacted by the cyber attack against Anthem, should be aware of scam email campaigns targeting current and former Anthem members. These scams, designed to capture personal information (known as “phishing”) are designed to appear as if they are from Anthem and the emails include a “click here” link for credit Anthem. • DO NOT click on any links in email. • DO NOT reply to the email or reach out to the senders in any way. • DO NOT supply any information on the website that may open, If you have clicked on a link in email. • DO NOT open any attachments that arrive with email. Members who have provided e-mails to Anthem and have opted in to receiving directing them to visit AnthemFacts. com to sign up for services. This e-mail is scheduled to be distributed the week of Feb. 16. This email, sent due to state notification requirements, will not ask Yes, BlueCard members are impacted. The for personal information and will not BlueCard is a national program that than AnthemFacts.com Blue Cross and Blue Shield Association’s contain a link to any websites other enables members of one Blue Cross and Blue Shield Plan to obtain healthcare the country and in more than 200 countries I received a call from Anthem related to this cyber attack asking for my information, what should I do? electronic network for claims processing the cyber attack and is not asking for services while traveling or living in another Blue Cross and Blue Shield Plan’s service area. The program links participating healthcare providers with the independent Blue Cross and Blue Shield Plans across and territories worldwide through a single and reimbursement. The independent Blue Cross and Blue Shield plans affected include some members of Arkansas BCBS, BCBS of Alabama, BCBS of Arizona, BCBS of Hawaii, BCBS of Kansas, BCBS of there was no diagnosis or treatment data Do the people who accessed my information have my credit card numbers? I think I received a scam email related to Anthem’s cyber attack? communications may receive an e-mail Kansas City, BCBS of Louisiana, BCBS exposed. with this company to reduce the risk of Do the people who accessed my information know about my medical history? No - our investigation to date indicates has contracted with a global company specializing in the investigation and Anthem is not calling members regarding credit card information or social security numbers over the phone. All impacted members will receive notice via mail which will advise them of the protections being offered to them as well as any next steps. If you believe you have been a victim of of Massachusetts, BCBS of Michigan, a scam or identity theft crime related to BCBS of Nebraska, BCBS of North Crime Complaint Center (IC3) at www.IC3. of Rhode Island, BCBS of South Carolina, identifying your complaint as “Anthem” BCBS of Minnesota, BCBS of Mississippi, this incident, please file with the Internet Carolina, BCBS of North Dakota, BCBS gov . Please be as descriptive as possible BCBS of Tennessee, BCBS of Vermont, and try to include the following: BCBS of Wyoming, Blue Cross of Idaho, Blue Shield of California, Capital Blue Cross, CareFirst BCBS, BCBS of • Service Association of Northeastern PA, • websites, bank fraud information, and Lifetime Healthcare, Inc., Premera BCBS, beneficiary names. Wellmark BCBS, BlueCross BlueShield BlueCross BlueShield of Oklahoma, Identifiers of the perpetrators such as names, email addresses, Independence Blue Cross, La Cruz Azul, of Illinois, BlueCross BlueShield of Texas, Details on how, when, and why you believe you were defrauded. Florida, GeoBlue, HealthNow New York, Highmark BCBS, Horizon BCBS, Hospital • and portions of Washington state). to its database warehouses. Anthem enforcement investigators. At this time, no one person or entity has been identified as & Utah) and Regence BlueShield (in Idaho • Actual or attempted loss amounts. Header information from email messages. Regence BlueCross BlueShield (in Oregon Anthem is doing everything it can to ensure there is no further vulnerability • BlueCross BlueShield of Montana, monitoring. These emails are NOT from What information has been compromised? BlueCross BlueShield of New Mexico, Other relevant information to support your complaint. Complainants are encouraged to save all original documentation, emails, faxes, and logs from communications in the event you are contacted by Law Enforcement. Does this impact Blue Cross and Blue Shield Federal Employee Program plans? Yes, based upon the investigation thus far, it appears that Blue Cross and Blue Shield Federal Employee Program plans members are impacted. The Blue Cross and Blue Shield Service Benefit Plan is part of the Federal Employees Health Benefits Program (FEHBP.) If I choose to purchase credit monitoring and repair services effective immediately, will Anthem reimburse me? No. Anthem is contracting with a trusted vendor to provide free identity repair services, which will be retroactive to the date of the potential exposure, and credit monitoring to all those impacted, and will not reimburse for services that you may have independently purchased. Does the acceptance of Anthem’s offer of 2 years of AllClear ID’s identity theft repair or credit monitoring services cause members to waive any legal rights? No. Since there is integration between Anthem and HealthEquity, does the breach also compromise employees’ Health Equity account? Anthem’s research to date indicates that no FSA (Flexible Spending Account) or HSA (Health Savings Account) data was compromised. What if I am living internationally and need to contact AllClear for identity repair services? Please contact the international non-toll free number at 512-201-2195. CSEA NEWS April, 2015 Page 9 Hudson Notice CSEA SEIU LOCAL 2001 NOTICE TO ALL NON-MEMBER AGENCY FEE PAYERS BASED ON EXPENSES FOR THE YEAR ENDED 06/30/2014 This Notice is being provided to all individuals who pay agency fees to CSEA, SEIU Local 2001. (Hereinafter “Local 2001”) under collective bargaining agreements between Local 2001 and various employers in the State of Connecticut. Such Notice is being implemented in order to comply with the requirements of the decisions of the United States Supreme Court in Chicago Teachers Union Local No. 1, AFT, AFL-CIO et. al. v. Hudson, 106 S. Ct. 1066, 475 U.S. 292 (1986), and Communications Workers v. Beck, 487 U.S. 735, 108 S. Ct. 2641 (1988). The U.S. Supreme Court has held that federal law does not permit a labor union to use union funds collected from non-members pursuant to a union security clause on union activities unrelated to representational activity, if the nonmember objects. Representational activity includes all matters germane to collective bargaining, contract administration, and grievance adjustment. PLEASE READ THIS NOTICE CAREFULLY. IT CONTAINS IMPORTANT INFORMATION AND PROCEDURES REGARDING YOUR LEGAL RIGHTS. Local 2001 believes that the funds it expends on activities deemed nonrepresentational, such as certain types of legislative lobbying, litigation, public relations and communications, are vitally necessary to fulfilling Local 2001’s role in representing and improving the working conditions for all employees. Employees who have not joined Local 2001 are urged to consider the benefits of full union membership. Members may participate in decision making on matters such as wages, benefits, and working conditions. Members may participate fully in union activities such as developing contract proposals, voting on collective bargaining agreements, and electing and/or running for union office. Members may also participate in the various member only benefit programs offered by the union, such as discounted retail and insurance programs, the McCusker Scholarship program for children of members, discounted travel opportunities and other member only benefits that are offered from time to time. Employees who choose not to join Local 2001 may nonetheless continue to support the union by not objecting to paying an agency fee equal to the dues that union members pay. As determined by Local 2001 and verified by an independent certified public accounting firm, for the year ending June 30, 2014, 68.58 % of Local 2001’s expenses have been classified as being for representational functions; 31.42 % of the expenses have been classified as nonrepresentational. Nonmembers who pay an agency service fee that is equal to membership dues have the right to object to paying the non-chargeable portion of the agency service fee which finances nonrepresentational union activities. Those who file an objection are classified as objecting nonmembers and are required to pay only the fair share fee required under the union security clause. The fair share fee reflects your share of Local 2001’s expenditures for collective bargaining, grievances and arbitrations, contract administration and representation, as well as other matters germane to collective bargaining. The categories of activity that have been included in calculating your fair share fee include the following: 1. Gathering information from employees concerning collective bargaining proposals. 2. Gathering information in preparation for the negotiation of collective bargaining agreements. 3. Negotiating collective bargaining agreements. 4. Adjusting grievances and conducting arbitrations pursuant to collective bargaining agreements. 5. Conducting ratification proceedings for negotiated agreements. 6. Providing information on the negotiations, or provisions in collective bargaining agreements, as well as on matters relating to representation in the collective bargaining process and contract administration. 7. Purchasing books, reports, and advance sheets used in matters relating to representation in the collective bargaining process. 8. Paying technicians and professionals in labor law, economics, and other subjects for services used in (a) negotiating and administering collective bargaining agreements, and (b) processing grievances and conducting arbitrations. 9. Defending Local 2001 against efforts by other unions or organizing committees to gain representation rights in units represented by the union. 10. Participating in proceedings regarding the jurisdiction of Local 2001. 11. Publishing those portions of newspapers and newsletters which relate to bargaining and representation. 12. Participating in lawful impasse procedures, and fact finding, mediation, arbitration, and economic action intended to secure favorable collective bargaining agreement and favorable resolution of grievances. 13. Prosecuting and defending litigation or charges before administrative agencies relating to ratification, interpretation, or enforcement of collective bargaining agreements. 14. Supporting and paying affiliation fees to SEIU and subordinate bodies of the SEIU to the extent that such support and fees relate to the representational interests of Local 2001 in the collective bargaining process and contract administration. 15. Prosecuting and defending litigation or charges relating to concerted activity, the duty of fair representation and collective bargaining, as well as collective bargaining agreements, and any other chargeable activities. 16. Providing social and recreational activities open to all represented employees. 17. Governing Local 2001, and conducting union elections. 18. Conducting general membership meetings and conventions. 19. Conducting the bargaining process and all contract administration related issues. Activities that are classified as non-chargeable include the following items. In calculating the fair share fee, Local 2001 did not include any share of expenditures, either direct or indirect, relating to the following activities: 1. Organizing expenses 2. Training in or actual voter registration, get-out-the-vote, or political campaigns. 3. Supporting and contributing to charitable organizations. 4. Supporting and contributing to political organizations and candidates for public office. 5. Supporting and contributing to ideological causes and committees, including ballot measures not germane to the collective bargaining process or employee working conditions. 6. Supporting and contributing to activities relating to foreign affairs. 7. Providing benefits available only to members. 8. Litigation not related to collective bargaining or Local 2001’s function as an exclusive representative. Enclosed please find a copy of the report on the chargeable and non-chargeable expense analysis applied to SEIU International titled CONSOLIDATED STATEMENT OF EXPENSES AND ALLOCATION BETWEEN CHARGEABLE EXPENSES AND NON-CHARGEABLE EXPENSES SERIES 3 for the year ended DECEMBER 31, 2013. It was determined by SEIU and verified by an independent auditor that 18.763 % of the SEIU expenses were chargeable and 81.237 % were non-chargeable. These percentages were applied to the SEIU Per Capita payments made by Local 2001 to SEIU International to determine the appropriate amount chargeable to Local 2001 objecting agency fee payers. Enclosed please find the independent auditor’s report prepared by Novak Francella, LLC which contains the Schedule of Total Expenses and Allocation of Expenses Between Chargeable Expenses and Non-Chargeable Expenses for the year ended June 30, 2014. PLEASE READ THIS SECTION CAREFULLY – NON-MEMBERS MUST COMPLY WITH THIS PROCEDURE IN ORDER TO REGISTER AN OBJECTION AND RECEIVE A REBATE. If a non-member fee-payer wishes to object to paying the difference between the chargeable and non-chargeable portion of their fair share fee as described above, they must do so individually in writing by mailing via US Mail notice of their objection to: Roland Bishop, Jr., Secretary-Treasurer, CSEA, SEIU Local 2001, 760 Capitol Avenue, Hartford, CT 06106. The objection must include the objector’s name, address, employer identification number, employer’s name, work location, telephone number, and email address. Objections must be date-stamped received in our office at 760 Capitol Ave, Hartford, CT 06106 no later than 30 days after the receipt of this notice by the individual agency fee payer. Notwithstanding the 30 day requirement for filing an objection, all objections must be date stamped received in our office by close of business (4:30 pm) on Friday, April 24, 2015 in order to be considered timely filed. Objecting non-members who pay an agency service fee equal to regular membership dues and who file timely objections will be refunded 31.42% of the agency service fee in accordance with the calculation set forth in this notice. Objecting non-members who pay an agency service fee which is less than regular membership dues and who file timely objections will be refunded the difference between their current agency service fee and regular membership dues less 31.42 % of non-chargeable expenses. PLEASE READ THIS SECTION CAREFULLY – YOU MUST COMPLY WITH THIS PROCEDURE IN ORDER TO REGISTER A CHALLENGE TO LOCAL 2001’S DETERMINATION OF CHARGEABLE AND NON-CHARGEABLE PERCENTAGES. Individual non-members have the right to challenge Local 2001’s determination of the amount of the fair share fee. Individual non-members who wish to challenge Local 2001’s determination of chargeable versus non-chargeable expenses, must do so in writing by mailing via US Mail notice of their challenge to: Roland Bishop, Jr., Secretary-Treasurer, CSEA, SEIU Local 2001, 760 Capitol Avenue, Hartford, CT 06106. Only individual challenges will be accepted. The challenge must include the challenging non-member’s name, address, employer identification number, employer’s name, work location, telephone number, email address. Individual challenges must be date-stamped received in our office at 760 Capitol Ave, Hartford, CT 06106 no later than 30 days after the receipt of this notice by the individual agency fee payer. Notwithstanding the 30 day requirement for filing a challenge, all challenges must be date stamped received in our office by close of business (4:30 pm) on Friday, April 24, 2015 in order to be considered timely filed. Upon receipt of the written challenge, Local 2001 will place into an interest-bearing escrow account the proportion of the fees collected from the challenging non-member that are reasonably in dispute. Local 2001 participates in a procedure through the American Arbitration Association under which a reasonably prompt decision will be rendered by an independent decision-maker on all challenges. The Arbitrator will be selected by the American Arbitration Association (AAA). All timely filed challenges will be consolidated for a single hearing. The AAA will appoint an arbitrator from a special panel of arbitrators experienced in employment relations who is willing to hear and decide such issues in accordance with applicable law and the union’s internal procedures, and who is prepared to meet the applicable time limits. The AAA will notify the parties of the arbitrator’s appointment. After hearing testimony and evaluating evidence presented by the parties, the Arbitrator will have the authority to determine if the fair share fee is correct and to order any adjustments therein, if necessary, and to order that the funds being held in the interest-bearing escrow account be distributed in accordance with his or her opinion. The arbitration will be scheduled and conducted in accordance with the American Arbitration Association Rules and Regulations. The Arbitrator’s fees and expenses will be paid by Local 2001. If an individual non-member fee-payer files a challenge, he/she will bear their own expenses for representation at the hearing, such as travel, lost wages, and attorney’s fees. April, 2015 CSEA NEWS Page 10 CSEA Independent Auditor’s Report NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature and Organization - CSEA, SEIU Local 2001 (Local 2001) was incorporated in the State of Connecticut on October 24, 1941 for the purpose of uniting employees and retirees of the State of Connecticut for their mutual welfare, protection, and advancement. Method of Accounting - The statement has been prepared using the accrual basis of accounting. Depreciation - Depreciation and amortization of fixed assets are computed using the straight-line method at rates calculated to allocate the cost of the applicable assets over their estimated useful lives, which are 15 - 40 years for buildings and building improvements and 3 - 7 years for furniture and fixtures. Depreciation expense for the year ended June 30, 2014 was $26,093. Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of expenses in the statement. Actual results could differ from those estimates. NOTE 2. TAX STATUS Local 2001 is a nonprofit organization and is exempt from Federal and state income taxes on exempt function income under the provisions of Section 501(c) (5) of the Internal Revenue Code. Local 2001 has income, attributable to its newsletter operations and other promotional activities, that is subject to Federal and state unrelated business income taxes. For the year ended June 30, 2014, Local 2001 has experienced losses on the activities and no taxes have been paid. Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by Local 2001 and recognize a tax liability if Local 2001 has taken an uncertain position that more likely than not would not be sustained upon examination by the U.S. Federal, state, or local taxing authorities. Local 2001 is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Typically, tax years will remain open for three years, however this may differ depending upon the circumstances of Local 2001. NOTE 3. DESCRIPTION OF THE BASES FOR CLASSIFYING CHARGEABLE EXPENSES AND NON-CHARGEABLE EXPENSES Chargeable Expenses - Chargeable expenses are those expenses incurred by Local 2001 for representational activities. Representational activities are those duties that Local 2001 performs as a representative of the employees in dealings with the employers, including collective bargaining, contract administration, grievance arbitration, and other activities germane to the collective bargaining process. April, 2015 Activities that are classified as chargeable include the following: preparation for and negotiation of collective bargaining agreements; contract administration including grievance activities; issues involving specific terms and conditions of employment such as wages, hours, benefits, employment discrimination, tenure, pensions/retirement, social security, teacher evaluation, environmental issues in the workplace, etc.; professional development, curriculum development and implementation, teaching methods and other instructional skills, site-based decision making and education generally, except to the extent that these expenditures involve legislative lobbying, political activities or external public relations; efforts to enhance and maintain a united front, allegiance and commitment among represented employees; arbitration proceedings, preparation and associated costs; information retrieval processes to support representational activities; membership services and other activities ancillary to collective bargaining that are principally designed to strengthen Local 2001 as a cohesive and effective bargaining agent including social and human relations activities; communications, publications and public relations efforts directed to represented employees for Local 2001 policy and related germane activities; governance of Local 2001 including conventions, Executive Council and meetings and expenses, judicial administration of constitution and bylaws, and coordination of affiliates; internal executive administration of Local 2001 including formulating policy, financial administration, and maintenance of membership status; education and training for members, officers and employees; and litigation costs and professional fees related to collective bargaining, contract administration, employment rights and benefits, organizational maintenance and defense, duties of fair representation under State of Connecticut law, and any other germane activities described above. Non-Chargeable Expenses - Non-chargeable expenses are those expenses incurred by Local 2001 for the benefit and advancement of the members and Local 2001 which are not considered representational activities for non-members. Non-chargeable activities are those services that are ideological or political in nature, exclusively for the benefit of members, and those that are not considered germane to representing non-members in the collective bargaining process. Activities that are considered as non-chargeable include the following: lobbying and political efforts before the state legislature, state agencies, or other executive branch officials, unless specifically related to ratification or implementation of a collective bargaining agreement or issues pertaining to members and nonmembers; external public relations not specifically related to collective bargaining or contract NOTE 4. SIGNIFICANT FACTORS AND ASSUMPTIONS USED IN THE ALLOCATION OF EXPENSES BETWEEN CHARGEABLE EXPENSES AND NON-CHARGEABLE EXPENSES Personnel - Consists of staff wages and longevity payments. These expenses have been allocated based on staff analysis of their time spent on the activities described in Note 3. Insurance - Consists of Local 2001’s share of staff health insurance. These expenses have been allocated based on staff analysis of their time spent on the activities described in Note 3. Pension plan and other postretirement - Consists of Local 2001’s contributions to staff pension plans and contributions for retiree health insurance. These expenses have been allocated based on staff analysis of their time spent on the activities described in Note 3. Payroll taxes - Consists of Federal and state employer taxes on staff wages and longevity payments. These expenses have been allocated based on staff analysis of their time spent on the activities described in Note 3. Travel - miscellaneous - Consists of staff mileage expenses, automobile allowances, automobile lease payments, automobile repairs and maintenance and other travel expenses. These expenses have been allocated based on related staff analysis of their time spent on the activities described in Note 3. CSEA NEWS Note regarding results of all other expenses analysis - Certain overhead and administrative expense categories have been allocated between chargeable and non-chargeable expenses based on the results of analyzing all other expenses. This represents the analysis of all expenses that can be determined to be chargeable versus non-chargeable through analysis with the exception of Service Employees International Union per capita tax payments as that expense is not controllable by Local 2001. Telephone - Consists of land lines at Local 2001 headquarters and cell phones. These expenses have been allocated based on the results of all other expense analysis. Office supplies - Consists of pens, paper, office equipment expenses, printing supplies and various other office supplies. These expenses have been allocated based on the results of all other expense analysis. Postage - Consists of general mailing and shipping costs. These expenses have been allocated based on the results of all other expense analysis. Maintenance of equipment - Consists of service agreement costs for the offset press, labeling equipment, folding and inserting equipment, maintenance and repair costs of production equipment not covered by service agreements and copier leases. These expenses have been allocated based on the results of all other expense analysis. SEIU Per capita tax payments (less chapter rebates and AMECSS) - Consists of per capita payments to Service Employees International Union, CTW, CLC - United States Division (SEIU), the State Council, and dues rebates. These expenses have been allocated based upon SEIU’s audited consolidated statement of expenses and allocation between chargeable expenses and non-chargeable expenses - series 3 report for the year ended December 31, 2013. According to this audited report, chargeable expenses represented 18.76% of total expenses. The State Council per capita taxes are considered fully non-chargeable while dues rebates are considered to be fully chargeable. Council/Chapter funding and rebates - Consists of rebates and refunds to subordinate associations, chapters, and councils pursuant to the CSEA SEIU Constitution. Also consists of dues refunds to members and non-members. These expenses are considered to be fully chargeable. Sundry - Consists of paper goods, cleaning supplies, and other miscellaneous uncategorized expenses. These expenses have been allocated based on the results of all other expense analysis. Accounting fees - Consists of professional fees paid for the audit of Local 2001’s annual financial statements, preparation of Local 2001’s annual Hudson statement, and preparation of government Forms LM-2 and 990. These expenses are considered to be fully chargeable. Computer service - Consists of computer network and consulting fees. These expenses are considered to be fully chargeable. Bernard H. McCusker Scholarship Fund donations - Consists of donations to the Scholarship Fund, which is a member only Fund. As such, these expenses are considered to be fully non-chargeable. Dues and subscriptions - Consists of dues and subscriptions to various legal, labor, labor relations and arbitration publications or databases. These expenses are considered to be fully chargeable. Other taxes - Consists of sales and use taxes. These expenses are considered to be fully chargeable. Staff training - Consists of staff representative training and support staff training. These expenses are considered to be fully chargeable. Capital expenses - Consists of equipment purchases. These expenses have been allocated based on the Page 11 results of all other expense analysis. Housing - Consists of insurance, fidelity bonding, real estate and property taxes, electricity, building maintenance, janitorial supplies, parking lot lease payments, heating, and water expenses. These expenses have been allocated based on the results of all other expense analysis. Members’ service - legal - Consists of expenses pertaining to Local 2001’s legal counsel, election issues, and charges and trials. These expenses are considered to be fully chargeable with the exception of those that have been specifically identified as nonchargeable. Organizing expense - Consists of expenses pertaining to the organizing of new members. These expenses are considered to be fully non-chargeable. Publications and information - Consists of printing and mailing costs related to the CSEA News. These expenses were allocated between chargeable and nonchargeable based on analysis of the content of each issue in accordance with the activities described in Note 3. Executive Council, officers and committees Consists of expenses related to Executive Council meetings, officer expenses, committee and committee meeting expenses. These expenses were allocated in accordance with the activities described in Note 3. Members’ service - field - Consists of arbitration expenses and other representational expenses. These expenses are considered to be fully chargeable. Depreciation - Consists of depreciation expenses on Local 2001’s building, building improvements, and office furniture and equipment. These expenses have been allocated based on the results of all other expense analysis. Grant expense - These expenses represent net grant expenses and have been considered to be fully chargeable. Reclasses - This column of the Statement of Total Expenses and Allocation of Expenses between Chargeable and Non-Chargeable Expenses consists of reclassifications to Local 2001’s June 30, 2014 audited financial statements to better reflect overall expenses for purposes of this statement. Local 2001 also provides services for a group of managerial employees who belong to the Association of Managerial Employees in CT State Service, Inc. (AMECSS). Local 2001 receives a biweekly payment from the members of AMECSS, of which a portion is transmitted back to AMECSS. The amounts that were transferred to AMECSS during the year ended June 30, 2014 have been offset by the affiliate member payments received by Local 2001. In addition, grant expenses have been offset by grant revenue. ONGER R T S Local 2001 TOGETHER Page 12 CSEA NEWS March, 2015 As a CSEA School Board Employee, As a CSEA School Board Employee, you could qualify for you could qualify for the following special discounts: the following special discounts: As As a CSEA School Board Employee, a CSEA School Employee, • CSEA/SEIU Local 2001Board member you could • CSEA/SEIU Local 2001 member for discount of upqualify to 15% you could qualify for of up to 15% •discount Extra Savings with automatic thethe following special discounts: •following Extra Savings with special automatic payment options discounts: options •payment Multi-policy discount • •Multi-policy discount Anti-theftLocal discount • CSEA/SEIU 2001 member • more CSEA/SEIU • •Anti-theft discount And discount of up toLocal 15% 2001 member discountwith of up to 15% • •And more Extra Savings automatic • Extra Savings with automatic options Board Employee, As apayment CSEA School payment options • Multi-policy discount could discount qualify for •you Multi-policy • Anti-theft discount the following • more Anti-theft special discount discounts: • And • And more • CSEA/SEIU Local 2001 member discount of up to 15% • Extra Savings with automatic payment options • Multi-policy discount • Anti-theft discount • And more This CSEA/SEIU Local 2001 member program This CSEA/SEIU Local offers 2001 you an opportunity substantial member program for offers you on your and home† ansavings opportunity forauto substantial This Local 2001 insurance. 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Auto &When Home free,you no-obligation Seeyou Howcall Much You Could Save. beMetLife sure to mention that Auto & Home See How Much You Call 1-877-491-5089 now toCould get a Save. you’re a to CSEA/SEIU Local 2001 be 1-877-491-5089 sure mention that Call to get a free, no-obligation quote. now When See How Much You Could Save. member and your unique you’re ano-obligation CSEA/SEIU Local free, quote.2001 When Call 1-877-491-5089 now to get Auto a you call MetLife & Home free, no-obligation quote. When discount code: BAR. you call MetLife Auto & Home and your unique bemember sure to mention that you call MetLife Auto & Home bethat sure to mention that be sure to mention code: BAR. you’re a discount CSEA/SEIU Local 2001 you’re a CSEA/SEIU Local 2001 you’re a CSEA/SEIU Local 2001 member and your unique member and your unique member and your unique discountdiscount code: BAR. code: BAR. discount code: BAR. † Homeowners insurance is not available in FL and MA. & Home is a brand of Metropolitan Property and Casualty Insurance Company and its affiliates: Metropolitan Casualty Insurance Company, Metropolitan Direct Property and Casualty Homeowners insurance is not available in FLMetLife andAuto MA. Insurance Company, Metropolitan General Insurance Company, Metropolitan Group Property and Casualty Insurance Company, and Metropolitan Lloyds Insurance Company of Texas, all with administrative home offices RI. Coverage, rates, and discounts are available in most to those whoMetropolitan qualify. Met P&C , MetCas , and MetGen are licensed in state of Minnesota. MetLife Auto & Home is a brand of Metropolitan Property andin Warwick, Casualty Insurance Company and itsstates affiliates: Casualty Insurance Company, Metropolitan Direct Property and Casualty © 2014 MetLife Auto & Home. PEANUTS© 2014 Peanuts Worldwide LLC † Insuranceinsurance Company,isMetropolitan Insurance Metropolitan Group Property and Casualty Insurance Company, and Metropolitan Lloyds Insurance Company of Texas, all with L0914390991[exp1215][All States][DC] Homeowners not availableGeneral in FL and MA. Company, SM administrative home in Metropolitan Warwick, RI. Coverage, rates, and discounts areCompany availableand in most states toMetropolitan those who qualify. MetInsurance P&C®, MetCas , and MetGenSM are licensed in state of Minnesota. MetLife Auto & Home is a offices brand of Property and Casualty Insurance its affiliates: Casualty Company, Metropolitan Direct Property and Casualty † © 2014 MetLifeMetropolitan Auto & Home. PEANUTS© Peanuts Worldwide LLC Homeowners insurance is not available in FL2014 and MA. Insurance Company, General Insurance Company, Metropolitan Group Property and Casualty Insurance Company, and Metropolitan Lloyds Insurance Company of Texas, all with SM Metropolitan Direct MetLife & Home isStates][DC] a brandRI. of Coverage, Metropolitanrates, Property and Casualtyare Insurance Company andstates its affiliates: Metropolitan Casualty Company, andinCasualty L0914390991[exp1215][All administrative homeAuto offices in Warwick, and available in most to those who qualify. MetInsurance P&C®, MetCas , and MetGenSM areProperty licensed state of Minnesota. † Homeowners insurance is notInsurance availableCompany, in FL discounts and MA. Insurance Company, Metropolitan General Metropolitan Group Property and Casualty Insurance Company, and Metropolitan Lloyds Insurance Company of Texas, all with © 2014 MetLife Auto & Home. PEANUTS© 2014 Peanuts Worldwide LLC MetLife Auto & Home is a brand of Metropolitan Property and Casualty Insurance Company and its affiliates: Metropolitan Metropolitan Direct Property ® Casualty SM Insurance Company, SM administrative home offices in Warwick, RI. Coverage, rates, and discounts are available in most states to those who qualify. Met P&C , MetCas , and MetGen are licensed in state of Minnesota.and Casualty Insurance Metropolitan2014 General Insurance Company,LLC Metropolitan Group Property and Casualty Insurance Company, and Metropolitan Lloyds Insurance Company of Texas, all with L0914390991[exp1215][All States][DC] © 2014 MetLife Auto &Company, Home. PEANUTS© Peanuts Worldwide † ® SM SM ® SM SM
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