1199SEIU Retired Members Division
BULLETIN
NOVEMBER/DECEMBER 2008
330 West 42nd St. n New York NY 10036 n (646) 473-8666 n www.1199SEIUBenefits.org
Your Pension Funds Are Secure
As Wall Street’s financial crisis dominates the headlines and we
your retirement.
1199SEIU retirees are a special group.
Few retirees today have the defined
pension benefit that our members
fought for and won.
Your 1199SEIU pension benefit is different than the private retirement
• In the U.S. today, only 18 percent of the workforce
accounts (such as 401(k)s) many other retirees depend on – the
– or fewer than 1 in 5 workers – have a defined
types of accounts that have been wiped out by the market’s poor
pension benefit like 1199SEIU retirees. Other
performance. Your pension assets are held in large funds that are well-
workers must rely on private savings accounts that
diversified and managed by our professional investment team. It will
rise and fall at the whims of the stock market.
hear more and more stories of lost retirement savings, we’ve been
receiving many calls from 1199SEIU retirees about the security of
your pensions. Thankfully, we can assure you that your 1199SEIU
pension is safe, and that it will be here to support you throughout
be an ongoing challenge for us, like other Taft-Hartley funds around
the country, to ensure the health of our Pension Funds in a volatile
market. However, the 1199SEIU Pension Funds have weathered
difficult markets in the past and come through successfully.
Regardless of Wall Street’s performance, your pension benefit is set
by a formula and does not decrease when the market falls.
In this
issue
• A recent New York Times article noted that 39
percent of retirees expect to outlive their savings.
But as an 1199SEIU retiree, you will receive a
monthly pension that you can count on for the rest
of your life.
Page 2 1199SEIU RMD President’s Message
Page 5 Out-of-State Retiree Chapters
Page 8 2007 Year-End Financial Statements
Page 3 1199SEIU Benefit & Pension Funds
Executive Director’s Message
Page 6 Important Information
Page 10 Annual Funding Notice
Page 7 Activist Page
1199SEIU President’s Message
Page 11 Artículo Principal Traducido
Page 4 NYC Calendar of Events
Page 12 Upcoming Events/Trips
1199SEIU RMD
President’s Message
Mensaje Del Presidente
John Perkins
2
Dear Sisters and Brothers,
Queridos Hermanos y Hermanas,
This presidential election was one
of the most exciting and important
elections in a long time. There will
undoubtedly be many changes
over the next four years for working
people across our country, as well
as our Union and our Funds. You
will read more about this on page
7, but I also encourage you to stay up
to date on the issues that will affect
1199SEIU retirees by attending
your local chapter meetings.
Estas elecciones presidenciales han
sido una de las más emocionantes
e importantes en mucho tiempo. Indudablemente se producirán muchos
cambios durante los próximos cuatro
años para la gente trabajadora a lo
largo de nuestro país, así como para
nuestros Sindicatos y nuestros Fondos. Tendrá la oportunidad de leer
más sobre este tema en la página 7,
pero le animo a que asista a las reuniones de su agrupación local para
que se mantenga actualizado en los
puntos que afectarán a los jubilados
de 1199SEIU.
The holidays are upon us, and we
look forward to seeing our New
York City retirees at the Annual
Anne Shore Holiday Banquet. Our
Florida and Carolinas chapters are
planning holiday parties as well,
which are listed in this bulletin. And
don’t forget that Florida retirees
will hold their own banquet on
Monday, March 30.
La temporada de fiestas se avecina
y esperamos ver a nuestros jubilados
de la Ciudad de Nueva York en nuestro Banquete Anual por las Fiestas
Anne Shore. Nuestras agrupaciones
de la Florida y Carolinas están también organizando fiestas, las cuales
se muestran en nuestro boletín. Y no
olvide que los jubilados de la Florida
celebrarán su propio banquete el
lunes 30 de marzo.
As always, I hope you will get and
stay involved in retiree events, from
our chapter meetings to classes at
the Retired Members Division. If
you’ve enjoyed a particular activity,
or have suggestions for something
new, we welcome the comments
and feedback. Stop by our Retired
Members Division or give us a call
to let us know.
Como siempre, espero que usted
participe y se involucre en las actividades para los jubilados, ya sea
asistiendo a las reuniones de nuestras
agrupaciones, como a clases en la
División de Miembros Jubilados. Si
le ha gustado una determinada actividad, o si tiene sugerencias o propuestas de algo nuevo, sus opiniones
y comentarios son bienvenidos. Pase
por nuestra División de Miembros Jubilados o dénos una llamada para
dejarnos saber.
In Solidarity,
En solidaridad,
John Perkins
John Perkins
NOVEMBER/DECEMBER 2008
1199SEIU Annual
Anne Shore
Holiday Banquet
Monday, December 1 – 11:00 am
Hilton New York
Grand Ballroom
1335 Sixth Avenue
(between 53rd & 54th Sts.)
Ticket holders only (all tickets are
sold out).
Coat check required (additional fee).
For more information,
call Peter Rosario at (646) 473-8761.
Save the Date
Annual Florida
Retiree Banquet
Monday, March 30, 2009
Coral Springs Marriott Hotel
11775 Heron Bay Blvd.
Coral Springs, Florida
• Continental Breakfast
• Town Hall Meeting
• Banquet Luncheon
with Keynote Speaker
• Entertainment
$10/member, $20/guest
(Bus transportation will be available
in retiree chapter areas.)
Contact:
Marilyn Silverberg
Florida Field Coordinator
(561) 369-8340 (Palm Beach Cty.)
(877) 369-8340 (Toll-free)
QUESTIONS? CALL: (646) 473-8666 • OUTSIDE NYC: (800) 892-2557
A Message from
Un Mensaje de
Mitra Behroozi
Movie Series
Wednesday, December 3
12:45 pm to 2:45 pm
“I Want to Live!” (1958)
Susan Hayward
Executive Director of the 1199SEIU Benefit and Pension Funds
La Directora Ejecutiva del Fondo de Beneficios y Pensiones de 1199SEIU
Dear Retired Member,
Querido Miembro Jubilado
The current financial crisis has most people,
La crisis financiera actual ha desatado
both working and retired, worried about
their retirement security. Across the country,
working people are afraid that they will
lose the promise of safety nets in retirement,
including both their health coverage and
muchas preocupaciones en trabajadores
activos y jubilados, acerca de la seguridad
de sus fondos para la jubilación. A lo largo
de todo el país, la gente trabajadora tiene
miedo de perder la promesa de contar con
fondos seguros en su jubilación, lo que
incluye ya sea la cobertura de salud como
their pension benefits.
los beneficios de pensión.
Fortunately, as an 1199SEIU retiree, you
Afortunadamente, en su condición de
can rest in the knowledge that your defined
pension benefit is secure. You will read more
about how and why in this issue’s cover story.
And you will also read about how, rather
than cutting back your health coverage,
jubilado de 1199SEIU, usted puede quedarse
tranquilo sabiendo que su beneficio de
pensión definido está seguro. Tendrá la
oportunidad de leer más sobre este tema,
el cómo y el por qué, en la historia de
portada que presentamos en esta edición.
Y también podrá leer sobre cómo, en vez
the Benefit Fund has been working hard to
de recortar sus beneficios de cobertura de
protect it.
salud, el Fondo de Beneficios ha venido
Of course, even though your pension is
safe, we understand that you may still have
questions about your retirement benefits.
That’s why your Benefit and Pension Funds
are here. Our Retiree Service representatives
can answer any questions that you may
have about your health or pension benefits,
and we encourage you to call us at
trabajando para protegerlos.
Naturalmente, incluso su pensión siendo
segura, comprendemos que aún pueda
tener
preguntas
sobre
sus
beneficios
de jubilación. Es por esa razón que sus
Fondos de Beneficios y Pensiones están a
su disposición. Nuestros representantes del
Centro de Servicios para Jubilados pueden
responderle cualquier pregunta que pueda
1199SEIU RMD
330 West 42nd Street, 9th Floor
For more information,
contact the RMD Main Office
at (646) 473-8666.
Vision/Hearing
Screening
Friday, December 19
10:00 am to 12:00 pm
First-come, first-served
1199SEIU RMD
330 West 42nd Street
9th Floor
Shakespeare Play
The Retired Members Division
Shakespeare Class is currently
studying “Twelfth Night,” the
fifth play in our Shakespeare
Series. Classes are held every
Tuesday, 12:30 pm to 1:30 pm,
at the Retired Members Division,
330 W. 42nd Street, 9th floor.
All are invited. Prior knowledge
of Shakespeare is not necessary.
Just come with a sense of humor
and your curiosity.
tener sobre sus beneficios de salud o
pensión. Lo instamos a que nos llame al
(646) 473-8666 or (800) 892-2557.
(646) 473-8666 ó (800) 892-2557.
Sincerely,
Sinceramente,
QUESTIONS? CALL: (646) 473-8666 • OUTSIDE NYC: (800) 892-2557
Wednesday, December 10
12:45 pm to 2:45 pm
“Gigi” (1958)
Leslie Caron &
Maurice Chevalier
NOVEMBER/DECEMBER 2008
3
NYC DECEMBER CALENDAR & CHAPTER MEETINGS
MONDAY
1
TUESDAY
2
9:30–12
10:30–12
12–3
12:30–1:30
1:30–3
Photography
Drama Class
Art Class
Shakespeare Class
Discussion Group
8
10:30–11:30
12–1
9
Opera Appreciation Class 9:30–12
Art History
10:30–12
12–3
12:30–1:30
1:30–3
Photography
Drama Class
Art Class
Shakespeare Class
Discussion Group
15
10:30–11:30
12–1
16
Opera Appreciation Class 9:30–12
Art History
10:30–12
12–3
12:30–1:30
1:30–3
Photography
Drama Class
Art Class
Shakespeare Class
Discussion Group
22
10:30–11:30
12–1
23
Opera Appreciation Class 9:30–12
Art History
10:30–12
12–3
12:30–1:30
1:30–3
Photography
Drama Class
Art Class
Shakespeare Class
Discussion Group
29
10:30–11:30
12–1
30
Opera Appreciation Class 9:30–12
Art History
10:30–12
12–3
12:30–1:30
1:30–3
Photography
Drama Class
Art Class
Shakespeare Class
Discussion Group
Anne Shore
Holiday Banquet
11:00 am
All classes are open to retirees and free of charge.
WEDNESDAY
THURSDAY
3
10–12
10–12
12:30–4:30
12:45
1–4
Choral Group
Knitting & Crocheting (Beg)
Knitting & Crocheting (Int/Adv)
Movie Series
Knitting & Crocheting (BK)
10
10–12
12:30–4:30
12:45
1–4
Knitting & Crocheting (Beg)
Knitting & Crocheting (Int/Adv)
Movie Series
Knitting & Crocheting (BK)
17
10–12
10–12
12:30–4:30
1–4
Choral Group
Knitting & Crocheting (Beg)
Knitting & Crocheting (Int/Adv)
Knitting & Crocheting (BK)
4
10–11
11–12
12
3–5
3–5
Tai Chi
Yoga*
Lunch Club
Arts & Crafts
Sewing
11
10–11
11–12
12
2
3–5
3–5
Tai Chi
Yoga*
Lunch Club
Birthday Party
Arts & Crafts
Sewing
18
9:30–12
10–11
12
2:30
3–5
3–5
Exec. Meeting
Tai Chi
Lunch Club
General Meeting
Arts & Crafts
Sewing
FRIDAY
5
10–12
1–2
Quilting Class
Dance Class
12
10–12
1–2
Quilting Class
Dance Class
OFFICE CLOSED
24
25
10–12
1–2
LPN Meeting
Vision/Hearing
Screening
Quilting Class
Dance Class
26
OFFICE CLOSED
NO CLASSES
31
NO CLASSES
THERE ARE NO CHAPTER MEETINGS
IN DECEMBER
PLEASE LOOK FOR DETAILS ABOUT JANUARY 2009
MEETINGS IN THE DECEMBER POSTCARD
NEW HYDE PARK - ELEANOR TILSON CHAPTER
QUEENS - ST. ALBANS CHAPTER
MEETING TOPICS
December
General Membership Meeting: 2009 Things
to Do to Change Your Life in 2009
January
General Membership Meeting and
Chapter Meeting: Exercise
HICKSVILLE - MILTON KONOWE CHAPTER
NORTH BRONX - BERNARD MINTER CHAPTER
BRONX - JOSEPH JAMES CHAPTER
EAST HARLEM - LEON DAVIS CHAPTER
BROOKLYN - MATTIE SMALL CHAPTER
BROOKLYN - MARSHALL DUBIN CHAPTER
4
NOVEMBER/DECEMBER 2008
QUESTIONS? CALL: (646) 473-8666 • OUTSIDE NYC: (800) 892-2557
*Sponsored by HealthCare Partners, IPA
NO CLASSES
19
10–12
10–12
OUT-OF-STATE RETIREES
FLORIDA NOTES
FLORIDA CHAPTERS
•
West Palm Beach Chapter
HOLIDAY PARTY
Wednesday, December 3 – 12:00 Noon
The Royal Palm Beach Cultural Center
151 Civic Center Way, Royal Palm Beach
$25/person – For reservations, call:
Yvonne Richardson (561) 969-7776 or
Elet Cyris (561) 791-9087
•
Broward – Leon Davis Chapter
Tuesday, December 9 – 12:00 Noon
Tamarac Public Library
8701 West Commercial Blvd., Tamarac
•
South Palm Beach Chapter
Thursday, December 11 – 10:00 am
Temple Emeth
5780 W. Atlantic Ave., Delray Beach
•
Miami-Dade – Ossie Davis Chapter
HOLIDAY PARTY – BRING A COVERED DISH
Friday, December 12 – 10:30 am
SEIU Healthcare Florida Local 1991
Lincoln Building – North Wing
Penthouse Floor
18441 NW 2nd Ave., Miami Gardens
•
Downtown Orlando Chapter
HOLIDAY PARTY
Wednesday, December 17 – 10:30 am
Local 8 SEIU Headquarters
7001 Lake Ellenor Drive
(Tarragon Building, at W. Lancaster Drive), Orlando
•
Orlando – Casselberry Chapter
HOLIDAY PARTY
Thursday, December 18 – 11:00 am
Casselberry Public Library
215 North Oxford Road, Casselberry
•
Port St. Lucie Chapter
HOLIDAY PARTY
Monday, December 15 – 12:00 Noon
Port St. Lucie Community Center, Room A
2195 SE Airoso Blvd., Port St. Lucie
$25/person – For reservations, call:
Yvonne Wilson (772) 344-1020 or
Millicent Wallace (772) 879-7145
With winter approaching, Florida retirees are
making final plans for their chapter holiday parties.
Please be sure to check with your local chapter
about the details, as some of the meeting dates and
locations will change from the normal schedule.
We are also excited to announce that on Monday,
March 30, 2009, at the Coral Springs Marriott
Hotel, 1199SEIU retirees from all over Florida will
convene for our Annual Banquet. The price is $10
per member and $20 per guest, which includes a
Continental breakfast and a catered luncheon. We
will discuss arrangements for buses and parking
with each individual chapter. Our turnout goal is
650, so let’s work together to make our banquet a
big success!
I would like to wish all our retirees and their families
a very happy and healthy holiday season, and I
look forward to seeing each of you at our chapter
meetings in 2009.
Sincerely,
Marilyn Silverberg
NORTH & SOUTH CAROLINAS CHAPTER
•
Friday, December 19 – 9:30 am
HOLIDAY MEETING
Birnie Hope Center
210 South Purdy St.
Sumter, South Carolina
For information about Florida chapter meetings,
contact Marilyn Silverberg:
Toll-free: (877) 369-8340; Fax: (561) 369-8342
In Palm Beach County: (561) 369-8340
8775 Via Tuscany Drive, Boynton Beach, FL 33472
For more information, call Nonnie B. Perry at (803) 481-0475.
QUESTIONS? CALL: (646) 473-8666 • OUTSIDE NYC: (800) 892-2557
NOVEMBER/DECEMBER 2008
5
IMPORTANT INFORMATION
Protecting Your Retiree Health Coverage
As healthcare costs continue to climb and more employers
Funds’ Trustees. For that to happen, we need a high con-
cut back on retiree health benefits or drop them entirely,
centration of retirees living in one area, which is why we
your Benefit Funds keep looking for ways to protect your
were able to offer the program last year to retirees in
retiree health coverage while holding down costs. One
Nassau County.
way we have done that is by enrolling New York City
and Nassau County retirees in the
1199SEIU HIP VIP Medicare Advantage Plan. Since this plan began, we
have received many calls and letters
from retirees in other areas wishing for
a similar plan.
We continue to look for more options,
and will keep you posted here on
any developments. In the meantime,
eligible 1199SEIU retirees still enjoy
comprehensive health coverage that
is not available to many other retirees.
And if you find a Medicare Advan-
While we have looked into partner-
tage Plan in your area that meets your
ing with Medicare Advantage plans
needs, you are free to enroll without
in other areas, we haven’t yet found
losing whatever additional benefits
another region where the program
your 1199SEIU coverage may pro-
would protect and enhance our re-
vide. If you have any questions about
tirees’ benefits while saving Fund
your health coverage, call the Retiree
dollars, two requirements set by the
Service Center at (646) 473-8666.
Do We Have Your
Current Information on File?
It’s so important to keep your information updated
with the Benefit and Pension Funds. The wrong
information could mean a delay in receiving your
benefits or risk you not getting the information you
need. Remember, we can forward your Retiree
Bulletin, but not your pension check. So get the most
out of your retirement benefits, and don’t miss a
thing by making sure we have your most updated
information in our files. You can download a change
of address form at www.1199SEIUBenefits.org or
call the Retired Members Division at (646) 473-8666.
6
NOVEMBER/DECEMBER 2008
Protect Yourself With Direct Deposit
It’s an unfortunate reality that there are people out
there who like to take advantage of seniors. But there
are many ways to keep yourself and your money
safe, and probably one of the best ways to keep your
pension check out of harm's way is to sign up for
Direct Deposit.
With Direct Deposit, there's no risk of having your
pension check lost or stolen in the mail or on the way
to the bank. Your money will be deposited in your
bank account automatically on the first business day
of every month, and you can access it that very day.
Direct deposit is easy, safe and free. For more
information about signing up for direct deposit, call
the Retiree Services Center at (646) 473-8666.
QUESTIONS? CALL: (646) 473-8666 • OUTSIDE NYC: (800) 892-2557
Activist page
A Message from
George Gresham
PRESIDENT, 1199SEIU UNITED HEALTHCARE WORKERS EAST
Dear Sisters and Brothers,
Are you excited? Are you proud of your Union? All of us
And with the Wall Street collapse, times are even tougher
have a right to be after the role so many thousands of
than usual. Unfortunately, some folks in state governments
our members—including our retired members—played
think that cutting essential healthcare spending is the way
in making history on November 4 and electing Barack
to solve fiscal problems.
Obama to be the 44th President of the United States.
We of course believe that you can’t balance budgets on
Hundreds of our officers and member activists were de-
the backs of our patients and our families. So, no sooner
ployed to some 20 battleground states, many starting as
are we finished with Election Day, than we have to wage
early as last summer. Dozens were lead organizers in the
major fights in our state capitals. At stake are not only the
many voter education, registration and get-out-the-vote
futures of patient care but the economic security of our
efforts. Thousands more became “Weekend Warriors,”
families, the health of our benefit and pension funds, and
taking buses and vans to the battleground states on
political respect for our union.
Saturdays and Sundays. And those numbers ballooned
on Election Day.
All of which is by way of asking you to make sure that
you’ve signed your card to check off your voluntary
This should serve us well as we put the nightmare Bush
retiree dues contribution from your pension payment.
years behind us and prepare to mobilize for universal
And to urge you to contribute, as much as you are able
healthcare and labor law reform in early 2009 when the
each month, to our Martin Luther King, Jr./1199 Political
new President and new Congress take office.
Action Fund. Checks can be sent to the Union’s Political
But as no one knows better than our retired members,
in 1199SEIU, there is never any rest for the weary.
Action Department at: 330 West 42nd Street, 7th floor,
New York, NY 10036.
In New York, Massachusetts and Maryland—and now
Please be well as we approach the holiday season. We
our latest state, New Jersey—all of the legislatures are
wish you all the best for a Happy New Year!
facing deficits.
In Solidarity,
this page is paid for by 1199seiu United Healthcare Workers East
QUESTIONS? CALL: (646) 473-8666 • OUTSIDE NYC: (800) 892-2557
NOVEMBER/DECEMBER 2008
7
2007
1199SEIU Benefit and Pension Funds
Year-End Financial Statements
In this document, you’ll find an overview of the financial information for your Funds, which we are required by law to make available
to you each year. These reports have also been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as
required by the Employee Retirement Security Act of 1974 (ERISA).
Summary Annual Report
for the 1199SEIU National Benefit
Fund for Health and Human
Service Employees
EIN 13-1628401 Plan No. 501
for the period January 1, 2007 through December 31, 2007
Insurance Information
The plan has a contract with Amalgamated Life Insurance
Company to pay certain claims incurred under the terms of the
plan. The total premiums paid for the plan year ending December
31, 2007 were $7,805,935.
Because it is a so-called “experience-rated” contract, the premium
costs are affected by, among other things, the number and size
of claims. Of the total insurance premiums paid for the plan
year ending December 31, 2007, the premiums paid under such
“experience-rated” contract were $7,252,003, and the total of all
benefit claims paid under the experience-rated contract during
the plan year was $7,082,618.
Basic Financial Statement
The value of plan assets, after subtracting liabilities of the plan,
was $145,586,916 as of December 31, 2007, compared to
$135,352,231 as of January 1, 2007. During the plan year, the
plan experienced an increase in its net assets of $10,234,685.
This increase includes unrealized appreciation and depreciation
in the value of plan assets, that is, the difference between the
value of the plan’s assets at the end of the year and the value
of the assets at the beginning of the year or the cost of assets
acquired during the year. During the plan year, the plan had total
income of $1,029,617,899, including employer contributions of
$1,018,231,581; employee contributions for COBRA benefits of
$2,707,323; and net earnings from investments of $5,703,498.
Summary Annual Report
for the 1199SEIU Health Care
Employees Pension Fund
EIN 13-3604862, Plan No. 001
for the period January 1, 2007 through December 31, 2007
Basic Financial Statement
Benefits under the plan are provided through a trust fund.
Plan expenses were $487,975,240; these expenses included
$35,109,978 in administrative expenses and $452,865,262 in
benefits paid to participants and beneficiaries. A total of 204,594
persons were participants in or beneficiaries of the plan at the
end of the plan year, although not all of these persons had yet
earned the right to receive benefits.
The value of plan assets, after subtracting liabilities of the plan,
was $9,082,662,956 as of December 31, 2007, compared to
$8,743,762,876 as of January 1, 2007. During the plan year, the
plan experienced an increase in its net assets of $338,900,080.
This increase includes unrealized appreciation and depreciation
in the value of plan assets, that is, the difference between the value
of the plan’s assets at the end of the year and the value of the
assets at the beginning of the year or the cost of assets acquired
during the year. The plan had total income of $808,960,246,
including employer contributions of $211,402,628 and net
earnings from investments of $597,557,618.
Minimum Funding Standards
An actuary’s statement shows that enough money was contributed
to the plan to keep it funded in accordance with the minimum
funding standards of ERISA.
Plan expenses were $1,019,383,212. These expenses included
$76,586,506 in administrative expenses and $942,796,709 in
benefits paid to participants and beneficiaries.
8
NOVEMBER/DECEMBER 2008
QUESTIONS? CALL: (646) 473-8666 • OUTSIDE NYC: (800) 892-2557
Your Rights to Additional Information
You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed
below are included in that report:
1. An accountant’s report;
2. Financial information and information on payments to service providers;
3. Assets held for investment;
4. Transactions in excess of 5 percent of the plan assets;
5. Insurance information, including sales commissions paid by insurance carriers;
6. Information regarding any common or collective trusts, and 103-12 investment entities in which the plan
participates; and
7. Actuarial information regarding the funding of the Plan (for Pension Funds only).
To obtain a copy of the full annual report, or any part thereof, write or call your Fund office at:
1199SEIU Benefit and Pension Funds
330 West 42nd Street, 28th Floor
New York NY 10036
The charge to cover copying costs will be $0.25 per page.
You also have the legally protected right to examine the annual report at the main office of the plan and at the
U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon
payment of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room
N1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W.,
Washington, D.C. 20210.
You also have the right to receive from the plan administrator, on request and at no charge, a statement of the
assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and
accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these
two statements and accompanying notes will be included as part of that report. The charge to cover copying costs
given above does not include a charge for the copying of these portions of the report because these portions are
furnished without charge.
QUESTIONS? CALL: (646) 473-8666 • OUTSIDE NYC: (800) 892-2557
NOVEMBER/DECEMBER 2008
9
ANNUAL FUNDING NOTICE
Annual Funding Notice for the 1199SEIU Health Care 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, EIN 13-3604862, PN 001 (Plan). This notice also includes information about rules governing
insolvent plans and benefit payments guaranteed by the Pension Benefit Guaranty Corporation (PBGC), a federal agency. This notice is for the plan
year beginning January 1, 2007 and ending December 31, 2007.
Plan’s Funding Level
The Plan’s “funded current liability percentage” for the Plan Year was 89.2%. 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, 2008 was $9,082,662,956. The total amount of benefit payments for the Plan Year was
$452,865,262. The ratio of assets to benefit payments is 20.0 to 1. This ratio suggests that the Plan’s assets could provide for approximately 20 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 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 percent of the first $11 of the Plan’s monthly benefit accrual rate, plus 75 percent 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 the participant’s years of 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 website, www.pbgc.gov, or call PBGC toll-free at
1-800-400-7242 (TTY/TDD users may call the Federal relay service toll free at 1-800-877-8339 and ask to be connected to 1-800-400-7242).
Additional Explanation
The 1199SEIU Health Care Employees Pension Fund is required by law to provide you with this notice about your plan’s funding. The Trustees of your
Fund are committed to helping provide you with security in your retirement, and if you have any questions about your pension benefits, please don’t
hesitate to contact the Pension Fund Office.
10 NOVEMBER/DECEMBER 2008
QUESTIONS? CALL: (646) 473-8666 • OUTSIDE NYC: (800) 892-2557
IMPORTANT INFORMATION
Sus Fondos de Pensiones Están Seguros
A medida que la crisis financiera de Wall Street domina los titulares
de los medios de comunicación y escuchamos más y más historias
sobre pérdidas en los ahorros para la jubilación, hemos estado
recibiendo muchas llamadas de los jubilados de 1199SEIU acerca
de la seguridad de sus pensiones.
Afortunadamente, podemos
asegurarle que su pensión de 1199SEIU está segura, y que seguirá
estándolo para ayudarle con su manutención durante su jubilación.
Sus beneficios de pensión de 1199SEIU funcionan de manera
diferente que las cuentas privadas de ahorros para la jubilación
(tales como 401(k)) de las que muchos jubilados dependen. Son estos
tipos de cuentas los que han sufrido una gran devastación debido al
pésimo desempeño de los mercados. Sus activos de pensiones son
mantenidos en grandes Fondos que están bien diversificados y son
administrados por nuestro equipo de profesionales especializados
en inversiones. Será un creciente desafío para nosotros, como otros
fondos Taft-Hartley en todo el país, asegurar la salud de nuestros
Fondos de Pensiones en un mercado volátil. Sin embargo, los Fondos
de Pensiones han logrado superar tiempos difíciles en los mercados
bursátiles en el pasado, saliendo victoriosos.
Los jubilados de 1199SEIU constituyen
un grupo especial. Pocos retirados hoy
en día poseen el beneficio de pensión definido
por el que nuestros miembros lucharon
y ganaron.
• Hoy en los Estados Unidos, sólo un 18% de la
fuerza laboral – lo que es menos de 1 en cada
5 trabajadores – poseen un beneficio de pensión
definido como los jubilados de 1199SEIU. Otros
trabajadores tienen que depender de cuentas
de ahorros que se incrementan y disminuyen de
acuerdo a los caprichos del mercado de acciones.
• Un reciente artículo publicado en el New York
Times puso de manifiesto que se pronostica que
a un 39 % de los jubilados no les alcancen sus
ahorros durante toda la jubilación. Pero usted,
como jubilado de 1199SEIU recibirá una pensión
Independientemente del desempeño de Wall Street, su beneficio de
mensual con la que puede contar por el resto de
pensión está definido por una fórmula y no se ve reducido cuando
su vida.
hay una falla en los mercados.
QUESTIONS? CALL: (646) 473-8666 • OUTSIDE NYC: (800) 892-2557
NOVEMBER/DECEMBER 2008 11
Presorted
Standard Class Mail
U.S. Postage
PAID
New York NY
Permit No. 3700
1199SEIU Benefit and Pension Funds
330 West 42nd Street
New York NY 10036-6977
UPCOMING EVENTS/TRIPS
Atlantic City – BALLY’S CASINO
Monday, December 15, 2008
Pay $25 – Get $18 Back
Manhattan – 9:00 am
1199SEIU
310 West 43rd Street (bet. 8th & 9th Aves.)
Sylvia Williams (718) 271-3144
Flatbush – 8:30 am
Brooklyn College
East 27th Street and Campus Road
Herbert Hicks (917) 971-7415
Brooklyn – 8:30 am
1199SEIU Brooklyn Cluster
(bet. Fulton & Livingston Sts.)
Lena Hayes (718) 624-1363
St. Albans – 8:30 am
197-01 Linden Blvd.
Clifton Rutherford (718) 657-8348
Las Vegas – Bally’s Hotel & Casino
Sunday, December 7 to Thursday, December 11, 2008
Package includes round-trip airfare from JFK to Las Vegas,
four nights accommodations, day trip to Laughlin, coupon
book, transfers and baggage handling in Las Vegas, taxes
and trip cancellation insurance.
$679 per person, double occupancy
$659 triple
$869 single
Payment in full is due immediately.
For more information, please call Indirect Travel Services at
(516) 352-6900. Make all checks payable to Indirect Travel
Services, 1 North Tyson Avenue, Floral Park NY 11001.
All payments (check or money order only) are due by December 5
and should be made payable to Fantastic Tours and Travel. You
must give your payment to your chapter representative or bring it
to the RMD Headquarters at 330 W. 42nd Street, 9th Floor.
Our 1199SEIU retirees have set up a Travel Committee to plan your trips! This change will also make it easier for you to pay for your trips through the tour companies.
While the Travel Committee will help choose the vacation packages, please note that the travel companies are solely responsible for the trips provided.