November 2003 News
FROM THE PRESIDENT
The Green Bay section hosted a great annual meeting this year. The facilities,
entertainment,
and tour of the Packer facilities were well organized. Thank you Green Bay
section! Cindy 0'
Connor and Craig Treadway led the effort for the section - job well done!
Superior is next in the rotation to host the Annual meeting - we look forward to
them hosting
the Annual meeting.
We are a less than a year away from elections for the Association's Executive
Board. All
positions will be on the ballot. Think about serving as an officer and leader of
the Association.
Stay tuned to the newsletter for more information or see your section president
to get more
information.
Everyone is interested in the status of bargaining. Well, bargaining progress is
really slow.
We've met every week in October, but to date we have not really accomplished
much. The
Association and the State are still a long ways apart on wages and language
issues. We will
continue to work on these issues but the State has not come to the table with
much and they
want lots.
We continue to be well behind the market, a market defined by the State and
their use of
private consultants who are doing like work. But the State has not responded to
our market
analysis.
I will continue to keep section presidents informed as bargaining progresses and
we will discuss
at the monthly board meetings in detail. Again, see your section president if
you have any
questions about what is happening in the Association.
We'll be planning another Visit the Hill day for the early in 2004 plan now to
attend.
Remember to be professionally and technically the best you can be at your jobs!
It is how you
can best serve the taxpayers of the State.
Respectfully,
Timothy R. Hanley
SEA President
ETF BOARD MEETING - SEPTEMBER 25 2003
The ETF Board was informed by the staft'that since the elimination of the
Act 11 implementation staff positions, the backlogs are increasing in several
areas
since July 1, 2003.
Final calculations of annuities for recent retirees are backed up to 2500.
Death benefits backlog must be handled urgently and have tripled from 75 to 225
in three months.
The above are the reasons why SEA recommended that the Governor and the
Joint Finance Committee replace the 16 positions they cut from ETF's budget
without
saving any GPR funds. It only provides lousy service to all public employees,
and I
think it must include all legislators, the Governor and his staff.
The hot topic of discussion was the proposed legislation to add more very high
risk Venture Capital investments for SWIB and ETF to try and administer without
additional staff (S.B 260 & AB. 537)!!
SWIB gave the ETF Board an update of the investment status as I've reported
in other articles in this Newsletter.
The ETF Board will meet on the following dates in 2004:
March 25 & 26,2004
June 17 & 18, 2004
September 16 & 17, 2004
December 9 & 10, 2004
Their next meeting will be held December 11 & 12, 2003.
Melvin B. Sensenbrenner,
SEA Retirement & Health
Insurance Representative
WI COALITION OF ANNUITANTS (WCOA) MEETING - OCTOBER 15, 2003
Ed Kehl reported on the information draft by the Coalition Adhoc
Committee on ETF Board representation.
# Employees %
# Board Representatives
Active Public School Employees
82,273 17.7% 5
elected
Active State Employees (inc. UW) 70,512
15.1% 1
Active Local Government Employees 67,362
14.5% 3
Active Technical College Employees 9,390
2.0% 0
Special Local District Employees
2,664 0.5%
0
Legislative and Elected Officials
1,486 0.3%
0
Annuitants
112,142 24.1% 1 elected
Inactive Employees
120,000 25.8% 0
TOTAL:
465,829 100%
10
Governor Political Appointees
1,331 employers 3
Total: 13
There will be more discussion at future meetings on this subject.
SWIB performance Update by Sandy Drew:
Year to Date
July 31 August 31 September 30
Benchmark
Fixed or Balanced Fund +10.1% +12.0%
+13.5%
13.0%
Variable Fund
+14.9% +17.6% +17.5%
16.8%
Sandy Drew stated that to have a minimum 2% dividend, the Fixed Fund will have
to
have a 24% profit on December 31, 2003 as estimated by ETF.
Sandy also reported on the remodeling project in the SWIB owned building. The
first floor is to be completed in November 2003, and the rest of the building
to be completed in March of 2004.
The Board is due to reorganize the real estate and alternative investments
portfolios.
The Legislative Audit Bureau is doing a new audit of SWIB, and they will be com-
pleting the financial audit in December 2003. Report will be out in January
2004.
Discussed the legislative bills on Venture Capital (S.B. 260 and A.B. 537).
Two hearings that were scheduled were cancelled by the co-chairs because the
WREA Legislative Alert Network sent 500 negative E-mails to co-chairs. These
are very poor bills pushing very high risk investments for your retirement
accounts! !
Bill Ford's report was very Republican because normally the JSCORS would
receive 30 bills on retirement to review and report on. However, this year
there are only 9 which means the Republicans don't want to do anything for
public and state employees.
Bill did report that the ETF is looking for legislative support for a bill
to reduce the dividend threshold from 2% to 0.5% on the plus side to match
the 0.5% they have set on the negative dividends within the WRS.
The next WCOA Annual Conference is scheduled for Tuesday, May 11, 2004,
at the American Family Education Center in Arnerican Parkway.
The next WCOA meeting will be held on November 19, 2003.
Melvin B. Sensenbrenner,
SEA Retirement & Health
Insurance Representative
October 18, 2003
RETIREMENT AND HEALTH INSURANCE ANNVAL REPORT TO SEA MEMBERS
1. This year's good news was last 'year's bad news. Dave Stella left
ETF last year and will return to ETF this year in a different capacity.
2. In January 2003, the Joint Survey Committee on Retirement Systems
(JSCORS) membership was revised by the new legislative leaders.
Senate Co-chair: Republican Schultz
Republican Reynolds
Democrat Wirch
Assembly Co-chair: Republican V rakas
Republican Jeskewitz
Democrat Hubler
ETF Rep. --- Dave Mills
Attorney General Office --- Jane Hamblin
Insurance Commissioner --- Jorge Gomez
Public Representative by Gov. --- Michael Luttig
3. WRS Actuary provided the Fixed and Variable Fund Performance,
interest crediting and dividends for 2002. Note top line info on
Attachment #2.
4. Many of the employers in the WRS are paying off their unfunded
liabilities to reduce their future budget costs including the worst
employer "the State of Wisconsin". In May, the Governor's Budget
was approved to issue bonds at 5 to 6% to payoff their 8% interest
on the unfunded liability to the Retirement Fund ($730 million), and
the sick leave conversion credit payments they stopped June 30, 2002
were added, which amounted to another ($563 million). SEA did
support these budget proposals by Governor Doyle in our letter to
the Finance Committee last spring.
5. In August, the ETF Group Insurance Board established the proposed new
3 Tier Health Care System and the total premium cost of each plan. The
The ETN program by WISLINE on health insurance with Bill Kox of
ETF on October 14, 2003 from 9:00 a.m. to 11 :00 a.m. will provide
everyone an opportunity to ask questions about the system and the HMO's.
Also, the new Drug Purchasing Plan has been instituted and included within
the total cost of each health plan by ETF .
Don't forget the cost to you will depend on the Bargaining Agreement by
SEA, including an implementation date in the existing SEA Contract or the
new 3 Tier Cost System.
6. These are your benefits to take advantage of! Note the following list of
attachments:
Wisconsin Retirement System Info Sheet (WRS) (Attachment #1).
SWIB Performance Data 1983 to 2002 (Attachment #2).
New SWIB members appointed and their profiles (Attachment #3).
SWIB Legal Status Report (Attachment #4).
ETF WRS Fact Sheet 2003 (Attachment #5).
Wisconsin Deferred Compensation (457 Account) Fact Sheet
December 2002 (Attachment #6).
Accumulated Sick Leave Credit Conversion (ASLCC) Fact Sheet
2003 (Attachment #7).
Employee Reimbursement Accounts (ERA) Fact Sheet 2003
(Attachment #8).
Group Health Insurance Fact Sheet 2003 (Attachment #9).
Income Continuation Insurance Fact Sheet 2003 (Attachment #10).
Group Life Insurance Fact Sheet 2003 (Attachment #11).
Melvin B. Sensenbrenner,
SEA Retirement & Health
Insurance Representative
(PLEASE NOTE: If you want to review the attachments, please see a Board member
or anyone
else you know who attended the SEA Annual Meeting in Green Bay.)
WI COALITION OF ANNUITANTS (WCOA) MEETING - SEPTEMBER 17, 2003
There was a lengthy discussion regarding the RRC function issue, and
the Legislature's attempt to eliminate the RRC and not properly review and
study any future retirement legislation.
There was a motion and ,:seconded to show that the WCOA has high regard
and support for the work Bill Ford has done in his Legislative Council
assignment, for his work with and for the Coalition and that we need and
appreciate his continued support to the Coalition.
Vicki Hearing from SWIB reported the performance figures for the end
of August and the additional Venture Capital being proposed by the
Governor and Legislature in S.B. 260 and A.B. 537. Pat Lipton's letter to
the co-chairs on these bills was provided to SEA Board members.
SWIB will discontinue its role as co-sponsor of the Director's Summit
training program for members of corporate boards at the UW Madison as this
program took all the time of the half-time attorney position.
New Business - (a)-- It was announced that Dave Stella is returning to
ETF in an administrative role and will be invited to a future WCOA meeting.
(b)-- An error in a Wisconsin State Journal article on state health
insurance drug costs was reported; and the Coalition was informed that the
Trust Fund News is sent out Bulk Mail and some retirees might not be getting
it, and thus, are not aware of elections being held in which they are
eligible to vote for.
The next WCOA Meeting is scheduled for October 15, 2003.
Melvin B. Sensenbrenner,
SEA Retirement & Health
Insurance Representative
A STATE ENGINEERING ASSOCIATI!
Legislative Report Oct/Nov 200"
Larry Legro 2nd V.P .
On Sunday afternoon, September 14, 2003, I had the opportunity to attend
Assemblyman
Spencer Black's (D-Madison) ice cream social at a Madison park. I got to meet
him and the
Mayor of Madison (who incidentally formerly worked on Representative Black's
staff).
Spencer agreed to pen an article on public employees for a future newsletter.
Spencer was
one of THEE first legislators to mention state employees and speak out in favor
of our fair and
square negotiated contracts while the Joint Committee on Employment Relations (JOCER)
voted against approving them. Remember these contracts were almost two years
late in being
approved. Regarding his article, look for this in a future newsletter. By
connecting with elected
officials at these events, SEA's name (and your name and ideas) gets out to
these leaders.
Support those elected officials who supported you as a state employee. By the
way, I am not a
member of his district, but went to express my thanks to him. Also, it does not
hurt to chip in
to their campaigns if you can do so. Any amount is appreciated. More and more
they
depend upon this type of grass roots support.
State Assembly Representatives have elections every 2 years, and the State
Senate has elections
every 4 years. Half of the Senate is elected every two years for four year
terms.
I received a Humana Health insurance brochure in the mail recently. This is
private health
insurance for people who buy their own health insurance or for example, for
people
who are no longer part of their former spouse's health plan. Examples of
premiums paid are as
follows:
Early Retirees: Husband and wife both over 55, $1000 deductible, office visit
co-pay option,
$520.02/month premium. Part-time employee: age 42 $2500 deductible,office visit
copay option, zero
deductible Rx option, $138.97/month premium. Self-employed: age 34, $5000
deductible,
$121.22 /month premium.
Graduate students: wife age 23, husband age 27, $2500 deductible, office visit
co-pay option,
$137.10/month premium. Young Family: mom age 30, dad age 31, Daughter age 4, son
age 6, $1000 deductible,
office visit co-pay option, $350.80/month.
REMEMBER: the above examples are not for any State Hea1th Plan, but for private
plans. To
find out more (for a free quote) you can call 1-800-234- 7000 or visit the web
site at
www .AmericaDirect.com. It might be interesting to compare Humana' s quotes with
what is being offered by the state of WI in the Three Tier (or is it... Tear?)
system.
Elections are coming up for all locals at various times of the year, and next
year (2004) for the 5
Board positions. The "pay" is as follows: A local president (or their elected
substitute such
as the local V .P , Treasurer or trustee) gets a stipend of$150/monthly meeting
attended, plus
mileage, plus meals not provided, and lodging if overnight. The Board stipends
are $400/month
for the President, and Treasurer, and $300/month for the two V.P .s and the
Secretary.
Start thinking of running for office if this is something you feel you can
commit to. Talk to
each officer to fInd out more of the duties, responsibilities and time
commitments. Each
officer of the Board or local is a MAXIMUM of two, 2 year terms I repeat, TWO, 2
year
terms! SEA term limits are defined as such in the SEA Constitution and bylaws.
Maybe it is
time to start enforcing this. If no one steps up, then maybe the section shou1d
not have
representation at meetings until someone does step in and run for office. Term
limits should be
honored, and not be overlooked. Some of us are retiring from SEA at this time
next year. WE
will need a few new members to step up and run SEA.
From a recent political cartoon:
Corporate America, and even government seems to be saying: "We now outsource
jobs to cheap
foreign workers, saving lots of money in labor costs, while swelling the ranks
of our own
unemployed, but in turn creating a separate underclass willing to work for
peanuts,
Thus.. .attracting those jobs back here in the U.S.A. (This is called Economic
Development).
United Auto Workers(UA W) are coming close to settling their 4 year contract
negotiations
which include a first year $3000 signing bonus, 2nd year lump sum pay, and a 2%
and 3%
increase in years 3 and 4. They maintained their low cost health insurance plan
with no changes.
No other details were available from the source of this. Just thought you'd like
to see an
example from the private sector since we are negotiating again too.
The federal reserve kept short term interest rate at 1%, and will keep it at
"rock bottom" for a
considerable period. If you follow mortgage interest rates, they were under 6%
for a long
time this summer, creeped over 6% to about 6.2% this past 6 weeks, and now have
dropped
to 6% again, and even below 6%(5.75%) From Jim Hightower (he's a Texas humorist
and progressive activist) at "Fightin Bob Fest" held the weekend of9/6, states,
"We are living
under the most rightwing administration in history: with expanded government
powers to
spy on citizens, the disastrous occupation of Iraq, the vast transfer of wealth
to the top 1% of
taxpayers, the elimination of the surplus, and the aggressive dismantling of
regulations that
protect everything from the environment to worker health, to public education."
I was watching C-span and the daily orders, a US Congressman, was showing how
Social
Security will be a major unfunded liability within the next 5-10 years, and how
the tax
break given to the top 1 % of taxpayers alone would have canceled this impending
debt to the
Social Security system. He was giving those who listened, food for thought,
pointing out this
anticipated shortage in funds for Social Securitfederal government cannot keep
spending like it
has, look at the problems the states are having i due to the same.
Fundraising is heating up in the coming election season. To find out it your
leader is hosting
anything you can find it here:
http://thewheelerreport.com/lxnO4/_misc/fundraisers.htm (click on the month
of interest).
Many of these fundraisers are out of our league, but some are very affordable
and at least can
give you another view as to what an elected leader has to go through (raise
money) now and
then. By the way, if you send any money to any candidate it must be sent to
their homes, NOT to
their office (i.e. the Capitol) Checks are usually written to "Friends of Jane
Doe" or "Citizens
for John Doe" The home address can be obtained from the www.wisconsin.gov (find
legislature) web site or various other web sites.
Small contributions are appreciated, Dismas used to tell us that even $20 is a
plus for the
candidates. Remember the back pay you received not too long ago?" it could help.
Pop Engineering Quiz:
A certain bus line does not allow passengers to carry luggage over 4 feet long
onto its buses. A
man has a five foot fishing rod. How can he take it onto the bus? (Note: the rod
must stay intact
does not come apart and cannot be bent., but there is a way to bring it on the
bus and meet the
requirements). Answer next month.
In case you missed this: An AP article recently showed that monkeys understand
the concept of
fairness. It seems monkeys are given a granite token that they can exchange for
a piece of
cucumber, but if they see another monkey get a grape in exchange for his token,
the other
monkeys balk at accepting the cucumber, and if they do, toss it aside or pass it
to another. They
now want a grape too. This implies that our behavior may have evolved similar to
theirs and
the trait might have helped the species cooperate and survive.y will be at a
time when a lot of Americans will be
retiring, and in need of the funds. It is not too often that a politician looks
that far ahead for the
good of the populace. Keep in mind it is not that far away, just a few years and
the cycle will start
if corrective measures are not implemented. The