Winter 2006-2007 Cross Funds Administrative Initiative Enhances Efficiency and Provides Better Service to Members and Employers While the 1199SEIU Benefit and Pension, Training and Employment, and Child Care Funds all provide different benefits, they are provided to the very same members. Since the Funds use similar organizational functions to deliver these benefits, there is significant overlap in the Funds administrative work. That s why the League of Voluntary Hospitals and Homes and the Union initiated an all Funds approach that would streamline the Funds work, using the same systems to more effectively and efficiently deliver services to both members and employers. Together, the Family of Funds collectively administers 20 Funds that cover a range of needs across the industry, including hospitals, nursing homes and home care. Because the Funds work so closely together, it makes sense to improve their operations by integrating administrative departments and eliminating duplication of work. The Funds already share four common departments Legal, Contracts and Collections, Communications, and Investments. Together, the Family of Funds collectively administers 20 Funds that cover a range of needs across the industry, including hospitals, nursing homes and home care. Through the fall, the Cross Funds Steering Committee which includes Union and Management Trustees as well as the Executive Directors of the three umbrella Funds examined ways to combine and manage common administrative functions. By the end of the year, the Funds will also share Accounting and Finance, Audit, Facilities, Fraud and Security, Human Resources, and Information Technology departments, dramatically improving the ways the Funds operate and provide services to members and employers. IN THIS ISSUE... Protecting Our Health Reaches More Than 10,000 Members..... 2 Benefit Fund, Union and GNYHA Partner to Reduce Infection Rates. 3 RN Job Retention Study........ 4 Child Care Gala Dec. 5 th........ 5 Record Number of Members Register for Child Care Benefits... 5 Are Your New Employees Receiving Their Health Benefits?.. 6 Nursing Scholarships Address the Shortage................. 6 Scholarship and Camp Opportunities for Members Children......... 6
LETTER FROM THE EXECUTIVE DIRECTORS We re all aware of the challenges facing the healthcare industry. As the Berger Commission prepares to make recommendations for restructuring and the closing of hospitals and nursing homes, we know that institutions are making extra efforts to use their resources as effectively as possible. The Family of Funds is no exception. In this edition, you ll read about how the Funds are streamlining common administrative functions across the Benefit and Pension, Training and Employment and Child Care Funds to provide more services more efficiently to 1199SEIU members and employers. You ll also read about the Training and Employment Funds' study that is helping to quantify the impact of the Fund's programs on nurse retention rates. We re also addressing another area that is receiving a good deal of attention lately the increased focus on clinical outcomes. In response to this issue, the Benefit Fund, Union and GNYHA are partnering on a Protecting Our Patients campaign designed to reduce the rates of hospital infections. Finally, you ll read about how the Child Care Fund is supporting 1199SEIU families and about programs 1199SEIU parents can take advantage of now for the coming year. We re all in the business of caring. By giving healthcare workers the support they need, we re ultimately improving the level of patient care together. Benefit Fund s Protecting Our Health Program Reaches More Than 10,000 Members Throughout the fall, more than 10,000 1199SEIU members took part in the Benefit Fund s Protecting Our Health meetings, nutritional workshops and health fairs. These events are teaching 1199SEIU members to adopt healthier lifestyles through diet, exercise, ongoing relationships with their doctors, and regular preventive screenings and will hopefully go a long way toward reducing healthcare costs associated with treating chronic conditions. Due to popular demand, more Protecting Our Health programs are being scheduled for January and later dates. For more information on Protecting Our Health, speak to your Outreach Coordinator or contact the Outreach Department at (646) 473-6930. Sincerely, Mitra Behroozi Executive Director Benefit and Pension Funds Deborah King Executive Director Training and Employment Funds Vivian Fox Executive Director Child Care Funds 2 EMPLOYER NEWS Winter 2006-2007
Protecting Our Patients From Infection The Benefit Fund, Union and GNYHA Partner to Reduce Infection Rates As we all know, one of the greatest dangers and challenges the industry faces is the spread of infections in healthcare facilities. As payment schedules become increasingly linked to clinical outcomes, hospitals and nursing homes are struggling to overcome staffing and funding challenges to put more patient safety systems in place. Around the country, facilities have been introducing programs aimed at improving patient safety and reducing infection risks. And in hospitals in New York, the Benefit Fund, Union and GNYHA are partnering for a second year on a Protecting Our Patients campaign to do just that. The campaign is a team approach. Employers are grappling with the issue of increasing staff awareness and compliance, and since recent focus groups showed that members appreciate receiving information from their Union and their Benefit Fund, it makes sense for the Union, the Fund and employers to work together to reinforce the message about patient safety. One of the greatest dangers and challenges the industry faces is the spread of infections in healthcare facilities This wall-to-wall campaign is aimed at reaching every worker involved in patient care from transport workers to nurses. The three-tiered campaign addresses some of the simplest ways that healthcare workers can help to reduce infections: flu vaccinations, hand hygiene, and maintaining a clean, sterile environment. The first initiative, encouraging healthcare workers to get vaccinated against the flu, began in October. To complement hospitals and nursing homes own vaccination programs, the Fund reached out to 1199SEIU members through direct mail pieces sent to their homes, and provided institutions with posters and buttons to distribute to staff. A similar program for hand hygiene is now underway and will be followed by the third piece, maintaining a clean work environment. For more information on the upcoming Protecting Our Patients campaign or to request materials for your institution, contact the Outreach Department at (646) 473-6930. Winter 2006-2007 EMPLOYER NEWS 3
RN Job Retention Study to Quantify Impact of Training and Upgrading Fund Programs The last issue of 1199SEIU Family of Funds Employer News reported that participants in Training and Upgrading Fund nursing programs are completing their degrees and passing the N-CLEX nurse licensing exam at significantly higher rates than others statewide and nationally. The Fund has now begun a study of the job retention rates of these program graduates once they begin working as Registered Nurses. The study will ascertain retention rates for Fund graduates who are employed at 1199SEIU institutions. As an initial pilot, 15 institutions with the largest number of placements will be studied. The Fund also intends to do an analysis of how retention compares with non-fund participants and a cost/benefit analysis of the same. "Training and Upgrading Fund program goals are designed to help hospitals and nursing homes face increasing economic pressures that are often compounded by the high cost of recruiting and retaining qualified Registered Nurses," says Elaine Brennan, COO, Montefiore Medical Center. "I am so proud to see the use of the Fund as a vehicle for our staff to improve their lives and address a important need for Montefiore. Since 2000, we have graduated 42 RNs and 41 were upgraded and are currently working at Montefiore." The Fund expects over 1,100 Fund participants who graduated from 2000 to 2006 to be working in 1199SEIU institutions by the early part of 2007. 4 EMPLOYER NEWS Winter 2006-2007
Child Care Gala Is Meeting Fundraising Goals With Support of Hospitals and Community and Business Leaders In June 2007, the Child Care Subsidy/TANF Grant, which has provided over $22 million to help low-income 1199SEIU parents and communities access affordable and quality child care, will end. The loss of this funding will leave many low-income 1199SEIU and other parents without dependable, affordable child care. To make sure that these parents have access to the services they need, the Child Care Fund, through the non-profit Child Care Corporation, is sponsoring the first annual Care For Kids awards gala and fundraiser on December 5. The gala will celebrate the Fund s 15 years of service to working families and raise money to continue programs for low-income parents. While the final total is not yet available, early pledges and contributions suggest that the event will exceed its fundraising goal of $500,000, largely due to the healthcare industry, business and community leaders who have showed their support for the Fund s programs. Michelle Miller Morial, CBS Senior News Correspondent and former First Lady of New Orleans, will serve as Mistress of Ceremonies. Vernon Hill, Founder, President, and CEO of Commerce Bank, will chair the event, and 1199SEIU President Dennis Rivera and League of Voluntary Hospitals and Homes of NY President Bruce McIver will serve as Honorary Co-Chairs. In addition to raising dollars for affordable child care programs, the event will honor three individuals who have dedicated themselves to educating and advocating for children with the first annual Care For Kids award. The recipients of the inaugural awards are: Geoffrey Canada, Founding President of the Harlem Children s Zone and author; Linda Dunham, Chairman of the Board of Trustees of Ronald McDonald House of Charities; and Maria Elena Girone, President and CEO, Puerto Rican Family Institute. Record Number of Members Register for Child Care Benefits During the two-month fall registration process, Child Care Fund staff interviewed and registered a record number of 1199SEIU children for programs beginning in 2007 an estimated increase of 7%. Affordable child care is just one of the many benefits the Child Care Fund offers 1199SEIU parents and their children. The Fund also provides educational, recreational and special needs programs, learning centers, professional development training and summer day and sleepaway camps, cultural arts programs, workshops and resource and referral services, with the goal of giving the next generation and their parents the support they need to succeed at school and in the workplace. For more information about the Child Care Fund s programs, call (212) 564-2220 or visit www.1199ccf.org. Winter 2006-2007 EMPLOYER NEWS 5
Are Your New Employees Receiving Their Health Benefits? Even if you are reporting wages and paying contributions for new employees in 1199SEIU bargaining units, they are not eligible for health benefits until they enroll in the Benefit Fund. You can help the Benefit Fund make sure these new hires are receiving the coverage that your contributions pay for. If you are submitting wage reports electronically, the Fund already has the information we need to contact these members and help them enroll. If you are not submitting electronically, you can ensure that new hires in 1199SEIU bargaining units are receiving their health benefits by submitting a new hire report along with your monthly wage report. The report should list each new employee s name, social security number, date of hire, date of birth, and home address and phone. Our staff will follow up with each member. You should also remind your new hires to fill out an Enrollment Form, if they haven t already. Forms are available online at www.1199nbf.org and from your Outreach Coordinator. SUPPORTING THE NEXT GENERATION OF HEALTHCARE WORKERS: 1199SEIU MEMBERS CAN APPLY NOW FOR FAMILY PROGRAMS Nursing Scholarships Help Address the Shortage The Funds are working to address one of the healthcare industry s highest priorities the ongoing nursing shortage. To help create a new pool of qualified nurses, the 1199SEIU Next Generation RN Scholarship program offers support to children of members in the clinical phase of a nursing program. To ensure academic success, students receive financial support through a Benefit Fund scholarship, and a free N-CLEX nurselicensing review course through the Training and Employment Funds. Applications are available now and must be submitted by the third week of March, 2007, for the following academic year. For more information, call (646) 473-6920. Scholarship and Camp Opportunities Available Now for Children of 1199SEIU Members It s registration time for 1199SEIU families to apply for academic scholarships and summer camp slots. Last year, more than 2,500 college students received financial support through the Joseph Tauber Scholarship Program, and almost 1,000 more 1199SEIU children aged 9 to 15 attended overnight summer camps through the Anne Shore Camp Program. For more information on the Joseph Tauber Scholarship Program, call (646) 473-8999. For information on the Anne Shore Camp Program, call (646) 473-6925. 6 EMPLOYER NEWS Winter 2006-2007
Annual Funding Notice for the 1199SEIU Healthcare Employees Pension Fund Introduction This notice, which federal law requires all multiemployer plans to send annually, includes important information about the funding level of the 1199SEIU Health Care Employees Pension Fund Defined Benefit Pension Plan (the Plan ), EIN 13-3604862 Plan Number 001. This notice also includes information about rules governing insolvent plans and benefit payments guaranteed by the Pension Benefit Guaranty Corporation (the PBGC ), a federal agency. This notice is for the period beginning January 1, 2005 and ending December 31, 2005 (the Plan Year ). Plan s Funding Level The Plan s funded current liability percentage for the Plan Year was 91.4 %. In general, the higher the percentage, the better funded the Plan. The funded current liability percentage, however, is not indicative of how well a plan will be funded in the future or if it terminates. Whether this percentage will increase or decrease over time depends on a number of factors, including how the plan s investments perform, what assumptions the plan makes about rates of return, whether employer contributions to the fund increase or decline, and whether benefits payments from the fund increase or decline. Plan s Financial Information The market value of the Plan s assets as of January 1, 2005 was $7,305,093,556. The total amount of benefit payments for the Plan Year was $351,827,440. The ratio of assets to benefit payments is 20.8 to 1. This ratio suggests that the Plan s assets could provide for approximately 20.8 years of benefit payments in annual amounts equal to what was paid out in the Plan Year. However, the ratio does not take into account future changes in total benefit payments or plan assets. Rules Governing Insolvent Plans Federal law has a number of special rules that apply to financially troubled multiemployer plans. Under so-called plan reorganization rules, a plan with adverse financial experience may need to increase required contributions and may, under certain circumstances, reduce benefits that are not eligible for the PBGC s guarantee (generally, benefits that have been in effect for less than 60 months). If a plan is in reorganization status, it must provide notification that the plan is in reorganization status and that, if contributions are not increased, accrued benefits under the plan may be reduced or an excise tax may be imposed (or both). The law requires the plan to furnish this notification to each contributing employer and the labor organization. Despite the special plan reorganization rules, a plan in reorganization nevertheless could become insolvent. A plan is insolvent for a plan year if its available financial resources are not sufficient to pay benefits when due for the plan year. An insolvent plan must reduce benefit payments to the highest level that can be paid from the plan s available financial resources. If such resources are not enough to pay benefits at a level specified by law (see Benefit Payments Guaranteed by the PBGC below), the plan must apply to the PBGC for financial assistance. The PBGC, by law, will loan the plan the amount necessary to pay benefits at the guaranteed level. Reduced benefits may be restored if the plan s financial condition improves. A plan that becomes insolvent must provide prompt notification of the insolvency to participants and beneficiaries, contributing employers, labor unions representing participants, and the PBGC. In addition, participants and beneficiaries also must receive information regarding whether, and how, their benefits will be reduced or affected as a result of the insolvency, including loss of a lump sum option. This information will be provided for each year the plan is insolvent. Benefit Payments Guaranteed by the PBGC The maximum benefit that the PBGC guarantees is set by law. Only vested benefits are guaranteed. Specifically, the PBGC guarantees a monthly benefit payment equal to 100% of the first $11 of the Plan s monthly benefit accrual rate, plus 75% of the next $33 of the accrual rate, times each year of credited service. The PBGC s maximum guarantee, therefore, is $35.75 per month times a participant s years of credited service. Example 1: If a participant with 10 years of credited service has an accrued monthly benefit of $500, the accrual rate for purposes of determining the PBGC guarantee would be determined by dividing the monthly benefit by the participant s years of service ($500/10), which equals $50. The guaranteed amount for a $50 monthly accrual rate is equal to the sum of $11 plus $24.75 (.75 x $33), or $35.75. Thus, the participant s guaranteed monthly benefit is $357.50 ($35.75 x 10). Example 2: If the participant in Example 1 has an accrued monthly benefit of $200, the accrual rate for purposes of determining the guarantee would be $20 (or $200/10). The guaranteed amount for a $20 monthly accrual rate is equal to the sum of $11 plus $6.75 (.75 x $9), or $17.75. Thus, the participant s guaranteed monthly benefit would be $177.50 ($17.75 x 10). In calculating a person s monthly payment, the PBGC will disregard any benefit increases that were made under the Plan within 60 months before the earlier of the plan s termination or insolvency. Similarly, the PBGC does not guarantee pre-retirement death benefits to a spouse or beneficiary (e.g., a qualified pre-retirement survivor annuity) if the participant dies after the plan terminates, benefits above the normal retirement benefit, disability benefits not in pay status, or non-pension benefits, such as health insurance, life insurance, death benefits, vacation pay or severance pay. Where to Get More Information For more information about this notice, you may contact the Fund Office at 330 West 42nd Street, New York, NY 10036, or call (646) 473-8666. For more information about the PBGC and multiemployer benefit guarantees, go to PBGC s web site, www.pbgc.gov or call the PBGC toll-free at (800) 400-7242. (TTY/TDD users may call the Federal relay service toll free at (800) 877-8339 and ask to be connected to (800) 400-7242.) Winter 2006-2007 EMPLOYER NEWS 7
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