Newsletter #2



HARVEST TIME

Volume XXV, Number 2 April/May 2009

News of the Winston-Salem/Forsyth County Unit of the N.C. Retired School Personnel

President’s Message

The 2009 NCRSP Convention on March 24-25 in Durham was a special event for me as a first-time WSFCRSP delegate. It was gratifying to see many "old" NCAE friends from across our great state for whom there was no lapse in service from the active organization to the retired group. Therein lies our strength- a broad experience and knowledge base that serves us well in seeking the best benefits package for all retirees.

Reba Smith received Best Newsletter Award

At the NCRSP Awards Banquet

The NCRSP Awards Banquet on March 24 was especially eventful. As you can see in the photographs in this newsletter, the WSFCRSP won top honors for the state with our HARVEST TIME newsletter and for our website (among the large local units). With each award we received a check for $50. We also prepared a Brag Board for display at the convention to highlight our Pen Pals Program at Speas.

Governor Beverly Perdue was a surprise guest at the banquet. She honored Lacy Presnell, Jr., our NCRSP lobbyist, for his service to the educators, support personnel and students of North Carolina by presenting him with the Order of the Long Leaf Pine- a distinction that was well deserved. Lacy's length of service in safeguarding our retirement system has not quite equaled that of A.C. Dawson who passed away recently, but we owe him a debt of gratitude that our retirement system is sound in these difficult economic times. My bonnet is certainly off to these two men.

As we look forward to our May 13 membership banquet and final meeting of this membership year, I want to thank Roger Scott, one of our own retirees, for entertaining us at our March luncheon with his "man on the street" comic persona and his repertoire of jokes. Kim Sheeks will entertain us at the May banquet. She's called the "Hat Lady", because of the humorous anecdotes she shares as she constantly changes hats. And she has a large trunk full of hats!

Bob Severs received the Best Website Award

At the NCRSP Awards Banquet

Instead of door prizes, we will sell raffle tickets for $1.00 to purchase chances on a $20 gift certificate to Cloverdale Kitchen, a Lenox dish, a World Wildlife Federation silk tie, a lovely picture frame and a Willard Scott book. The proceeds of this raffle will go to our scholarship fund. BRING A HANDFUL OF GEORGE WASHINGTONS, AND LET'S ENJOY OUR FINAL MEETING OF THIS YEAR:

Reba J. Smith, President

784-9615

WS/FCRSP CALENDAR 2008-09

Wednesday, May 13, 2009, 12:00 Noon

Membership Banquet Meeting

Quality Inn & Suites

                                        

Minutes of the March 11th Meeting

The Winston-Salem/Forsyth County Unit of North Carolina Retired School Personnel met Wednesday, March 11, 2009, at noon at Quality Inn & Suites.  President Reba Smith called the meeting to order, and then led the group in the Pledge of Allegiance.  Rev. Sam Stevenson, of Grace Presbyterian Church gave the invocation.  The ninety-two members present enjoyed a delicious buffet lunch.

Following the meal, reports were given.  Treasurer Gwen Andrews reported that we have a total balance of $ 7477.69 (checking account - $ 2993.92, scholarship fund - $ 2233.30, CD - $2250.47).  We would like to give two scholarships this year.  Mrs. Andrews announced that our May meeting will be our banquet and it will be Wednesday, May 13.  We can pay $ 11.00 today for the banquet.  The Executive Board will decide where the banquet will be.  Mrs. Andrews asked if we liked the Quality Inn & Suites for the meeting and no one objected to this place.

Gwen Andrews also gave the membership report.  We currently have 354 members.  We welcomed two guests who are considering membership, Susan McBride and Diana Price. 

Legislative Chairman Bob Severs gave us copies of his legislative report.  He shared information on Senate Bill 287 (State Health Plan/Good Health Initiatives) which was introduced in the Senate by Sen. Tony Rand last week.  NCRSP wrote Sen. Rand to express concerns about the senate bill recommendation. Mr. Severs shared that the Retirement Board of Trustees recommended a 1% COLA, with no mention of the state contribution or formula.  Rep. Dale Folwell will submit a bill to change the calendar year for the state health plan.  There will be a complete legislative report/update in the next newsletter.

Pen Pals Project Chairperson Rita Taylor reported that we made gift bags for our pen pals for our group visits.  We will give our pen pals books at the end of the year by donating $5.00 - $10.00 to the classroom teachers so that they can order books from Scholastic Book Club.  Mrs. Taylor thanked pen pals for participating in the project and asked all pen pals to stand.

Community Participation Chairman Eugene Perryman reported that he received twenty-four Volunteer Report Forms totaling 6000 hours for our unit for 2008.  New Volunteer Report Forms were in the last newsletter mailings so that we can record our volunteer hours each month.  Mr. Perryman urged us to turn in "a whole stack" of forms for 2009.  He also reminded us that the lobbyists in Raleigh use the retirees' volunteer hours to show the legislators all that retirees do as volunteers. 

Our program, "Ways of Life Quips and Stories," was given by one of our members, Roger Scott. Mr. Scott began the program in disguise, then entertained us with his many stories and quotes.  Thank you, Mr. Scott, for a delightful afternoon.

 Door prizes were won by the following people:  Dot Vernon, Hazel Mitchell, Diana Price, Sarah Collins, Brenda Outen, Jean Mahaffey, Rita Taylor, Susie Nance, Sandra Shugart, and Angela Pittman. President Smith ended the meeting with the following announcements:

• Vote for NEA-R delegates on the blue ballots and turn them in before leaving.

• Place Christmas cards to be recycled in the box near the door.

• Kim Sheeks, "The Hat Lady," will entertain us at the May 13th banquet.

• The NCRSP State Convention will be March 24 - 25 in Durham.  The fourteen delegates listed on the agenda are:  N L Shearouse, Ann Councilman, Alice Roseboro, Mildred Griffin, Julia Johnson, Jo Anne Goetz, Odessa Gaither, Donna Staley, Lenna Severs, Reba Smith, Gwen Andrews, Eugene Perryman, Mary Jo Brewer and Bob Severs.

The meeting was adjourned following the announcements.

                          Mary Jo Brewer, Secretary

WINSTON-SALEM/FORSYTH COUNTY RETIRED SCHOOL PERSONNEL

FINANCIAL REPORT

February 1, 2009 – March 31, 2009

Checkbook Balance 2/1/09 $ 2,734.22

Membership Dues (Payroll Deduction) 338.72

Membership Meeting Reservations 1,046.00

Newsletter Presentation 50.00

Banquet Tickets – Sold 35.00

Total $4,203.94

EXPENDITURES 2/1/09 THROUGH 3/31/09

NCRSP Banquet Tickets 420.00

Membership Meeting 1,013.53

Postage – Mailings 260.98

Supplies 294.06

Total $1,988.57 -$1,988.57

Checking Account Balance –3/31/09 $2,215.37

Scholarship Fund Balance 3/31/09 $2,934.50

Certificate of Deposit 3/31/09 $2,520.47

Total of All Funds through 1/31/09 $7,670.34

LEGISLATIVE REPORT

April, 2009

Bob Severs

(Note: This report covers legislative activity through April 9. Final decisions on the State Health Plan and other issues impacting NCRSP in this biennium will be made after this edition of Harvest Time goes to press.)

North Carolina Pension Funds

The North Carolina Pension Funds lost $17 billion (20%) in value in 2008, from $77 billion a year ago to $60 billion on December 31, 2008. Although the system remains fully funded, State Treasurer Janet Cowell says that the pension fund needs an additional $$359 million from the General Assembly during the next two years. Cowell will ask the General Assembly for $29 million in fiscal year 2009-2010 to cover a 2008 deficit, plus $229 million for fiscal year 2010-2011. She also says that she and her team plan to follow a conservative investment course.

The State (employer) contribution rate to the Retirement System currently stands at 3.36%, too low to keep the system actuarially sound. While earnings in recent years have been sufficiently high to enable the General Assembly to reduce its annual contribution, the State actuary says that the contribution rate should be 6.26% to sustain the system over the long term. Over the past few years, NCRSP and other employee/retiree organizations have lobbied to get this rate increased to at least 4.8%, the rate for the Local Governmental Employees’ Retirement System.

Update On State Health Plan

When the 2009-2010 session of the General Assembly convened on January 28, it was reported that there would be a shortfall of $300 million in the State Health Plan in the year ending June 30, 2009. Jack Walker, Executive Director of the Plan, said that the Plan would need this infusion of cash by April 2009. But he was confident that a solution would be found to restore the Plan to stability.

Efforts to find a solution began on February 24, with the introduction of Senate Bill 287 (Senate Health Plan $/Good Health Initiatives). Senate Majority Leader, Tony Rand, was the sponsor. The bill does address the short-term funding needs of the Plan, and it does this by making significant changes in the benefit structure. The major features of the bill are as follows:

• Appropriates $250 million from Rainy Day Fund for 2008-2009 to address shortfall.

• Appropriates $349 million for 2009-2011 biennium.

• Eliminates PPO Option, effective 7-1-09.

• Implements wellness initiatives; i. e., smoking cessation and weight control.

• Eliminates routine eye exams, effective 1-01-10.

• Increases annual deductible from $300 to $600

• Increases out-of-pocket annual maximum from $1750 to $2750

Prescription Drugs

• Generic - ($10) No change

• Preferred brand– from $30 to $35

• Non-preferred brand – from $50 to $55

• Preferred brand with generic equivalent – co-pay for generic drugs plus difference between the Plan’s cost for the generic and the cost of the brand drug

• Dependent/spousal premium increase – 7.8%

• Creates Maintenance Medication Retail Pharmacy Network: After two 30-day refills of maintenance medications, members would be required to obtain these medications from a pharmacy in the network or by mail order. For each three-months supply of drugs obtained from either of these sources, the member would not be responsible for more than two and one-half monthly co-payments for a 30 day supply. If the drugs are purchased from another source, the member would pay 50% of the Plan’s allowable charges.

Employee/retiree groups expressed deep concern about the inordinately large increases in the deductible and out-of-pocket yearly maximum, particularly for members in the PPO Standard Plan, but the most contentious part of the bill centered on the Pharmacy Network/mail order options. Plan members, pharmacists, and lobbyists for both groups joined in the debate.

Amended Bill Passes The Senate

On March 10, the bill received a favorable report from the Senate Select Committee on Employee Hospital and Medical Benefits, after which it was referred to the Senate Committee on Appropriations/Base Budget. This committee passed the bill, but not before removing the Retail Pharmacy Network/mail order options. The amended bill passed the full Senate on March 24 and moved to the House.

House Insurance Committee Passes Bill

The House Insurance Committee met on April 2 in a rushed session to consider SB 287. After hearing from Bob Greczyn, BCBS CEO, the committee agreed to reduce co-payments for patients of chiropractors and physical and occupational therapists to the same level paid to their primary care physicians. The bill was then passed by a close vote. It was reported that Rep. Garland Pierce (D-Hoke) was the only Democrat who voted against the bill. And with the exception of Republicans Rep. Harold Brubaker of Randolph County and Rep. Julia Howard of Davie County, who were not present for the vote, all Republicans voted against the bill.

NCRSP Message To House Insurance Committee

On April 1, NCRSP Executive Director, Pam Deardorff, contacted members of the House Insurance Committee and requested their support in making the following changes in Senate Bill 287:

• Restore the Maintenance Medication Retail Pharmacy Network /Mail Order option that was stripped from the original Senate Bill 287. This, we understand, will help lower the 8.6% increase in premiums for dependent coverage back to 7.8%.  The higher premium is not only a financial burden on SHP members but also a deterrent for attracting younger, healthier participants/families to the Plan.

• For at least the first year of the biennium, consider reducing the $300 increase in the deductible, as well as the $1000 increase in the annual co-insurance (out-of-pocket) maximum for members in the 80/20 PPO Plan.  Doubling the annual deductible and increasing the annual coinsurance by $1000 is quite a large percentage increase in one year.   

• Support the creation of a study commission with representatives from various member organizations, including retirees, with the purpose of studying problems endemic to the State Health Plan and  developing solutions to keep the plan sound for the long term, thereby ensuring the maintenance of a premium-free plan for employees and retirees.  

House Appropriations Committee Passes Bill

The House Committee on Full Appropriations took up Senate Bill 287 on April 8, passing it the same day by a narrow vote of 44-40. Several amendments were added. It was then forwarded to the House floor for a vote on April 9. But after House Majority Leader, Rep. Hugh Holliman, realized that he did not have the votes to pass it, it was rescheduled for April 14.

Following House passage of the bill, the House and Senate versions must be reconciled by a House-Senate Conference Committee. Finally, it must be signed by the Governor. It’s expected to move rapidly, since Jack Walker has warned that the Plan will soon run out of money. Moreover, it’s essential to get something in place so that it can be communicated to members before July 1, the effective date of the new legislation. The deadline for re-enrollment is July 1, and the new benefit structure must be in place prior to October 1.

It’s interesting to note that when this bill came out of the Senate, the cost for dependent coverage had increased 8.6%. But because of amendments adopted in the House Insurance Committee and the Appropriations Committee to expand coverage, the cost for dependent coverage rose by 10%. This same increase applies to the premium paid by the State for both active and retired personnel.

The Legislative Committee will continue to monitor and report to members legislative developments in the 2009-2010 session of the General Assembly.

Necrology

The last edition of the Panorama reprinted a previous list of our deceased members and did not include the last several reports that had been sent timely. I have been assured that the next edition will be updated to include the list of members that should be included in the Memoriam section of Panorama. The Panorama staff regrets this error.

The Memorial Service at the NCRSP State Convention was a solemn and beautiful service of remembrance. All our deceased members since last year's banquet were memorialized.

Thanks to each of you who have helped keep me informed of the losses of members during this year. Please keep me informed through the summer as reporting continues throughout the year.

May you have a health-filled and fun-filled summer!

Donna L Staley (336) 788-7060

Hospitality Report

Our next WSFCRSP membership meeting will be on Wednesday, May 13, 2009, at Quality Inn and Suites on Hawthorne Road. Please check your calendar and mail your reservation now. Mail your reservation and a check for $11.00 per person by Thursday, May 7, so that I will receive it by Saturday, May 9. I must commit to a definite head count on Monday morning, May 11. If it becomes necessary for you to cancel, a refund will be given only if notification is received by Sunday, May 10.

Come early to complete all business before the meeting starts, giving you time to visit with your friends. The buffet will be ready at 11:40 a.m.

Thank you for your patience and cooperation throughout the year.

.

Gwendolyn D. Andrews – Hospitality Chairman

(336) 924-8772

WS/FCRSP OFFICERS

President Reba J. Smith

Rsmith345@triad.

Vice-President Jo Anne Goetz

jrvgoetz@

Past President Dr. Nelson L. Shearouse

nshearouse@

Secretary Mary Jo Brewer

mbrewer9@triad.

Treasurer Gwendolyn Andrews

924-8772

Assistant Treasurer Stephen Danner

sadanner@triad.

Historian/Parliamentarian Walter R. Wiley, Jr.

wwileyjr@

UPCOMING MEETINGS

May 13, 2009 (Banquet Meeting)

Please consider making the WSFCRSP Scholarship Fund your choice as a memorial gift in your final wishes. We need additional resources to continue to support our high school seniors who commit to teaching as a career.

COMMITTEE LEADERS

Budget & Finance Gwendolyn Andrews

Stephen Danner

sadanner@triad.

Legislative Robert Severs

RSevers@

Membership Ann Councilman

lacman8383@

Necrology Donna L. Staley

Retirement Planning/Photography John Shore

jhnjshr@triad.

Public Relations and

Community Participation A. Eugene Perryman

jpgp1@

Newsletter Dr. Lee Beall

lbeall@triad.

Hospitality Gwendolyn Andrews

Nominating Julia L. Johnson

Scholarship Florence G. Wiley

wwileyjr@

Pen Pal Coordinator Rita Taylor

rvta@

Website Evan Herreid

eherreid@wsfcs.k12.nc.us

Visit our web at web2k.wsfcs.k12.nc.us/wsfcrsp or go to state web () and click on Winston-Salem/Forsyth County.

  Reservations for May 13th Meeting

To register, complete and cut out the form below and mail with your check for $11, payable to WSRCRSP by May 9, 2009. Please mark your calendar and plan to attend.

Yes, I _________________________ would like to

(Name)

make reservations for ________, on May 13, 2009

(# of people)

I have enclosed a check for $______, which is

$11.00 per person. Make check payable to WSFCRSP and mail to: Gwendolyn Andrews

3550 Stimpson Drive

Pfafftown, NC 27040-8609

Make checks payable to: WSFCRSP

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