3. Expenses for the 5 Statewide Officers and Trustees 2009,$936,115wasspenttocoveritsoperationsand
T
(listed below): politicalcontributionscosts.
r
u
Membership: s
PEFrevenueis
t
comprisedofduespaidby
e
PEFmembersandagency-
shopfeepayers.Dues
e
incomeiscollectedinthe
s
payperiodforwhichNew
’
YorkStatepaysmembers’
R
salaries.Asof3/31/09,
PEFhadamembership
e
totaling59,312,up595 p
from2007-08.The
followingchartshowsthe
o
breakoutbydues-and
r
fee-payingmembers.
t
BANKING&INVESTMENTS:
Banking Changes:
PEFisworkingwithBankofAmericabasedonitsability
tomeetourdiverserangeofrequirements.Thischangehas
givenusaccesstostate-of-the-artbankingtechnology,
whichhasimprovedPEF’sinternaloperationsand,through
theuseof“positivepay”technology,negatesthepossibility
offraudulentchecksbeingpaid.Theonlinebankingsystem
alsowassetupwitha“dualapproval”restriction,which
meansnosingleindividualcanaccessfundswithout
someoneelse’soversightandapproval.
Thedivisions’financialsystemwillsignificantlyreduce
theheadachesassociatedwithdivisions’financial Union Affiliations:
recordkeeping.Itwilldramaticallyreducetheworkload, PEFisaper-capita-payingmemberofboththeAmerican
whilesimultaneouslyallowingthemtoearninterestincome FederationofTeachers(AFT)andtheServicesEmployees
intheiraccounts.Variousdivisionsandregionshave InternationalUnion(SEIU).Wehavea50/50splitofour
adoptedthisandmorewillfollow. membershipintoeachaffiliate.
Forfiscalyear2008-2009,PEFpaidatotalof
Investment Changes: $9,863,731inpercapitaduestoAFTandSEIU. This
PEFcontinuestomovemoremoniestobehandledby represented28.7percentofourtotalexpenses,comparedto
ourinvestmentmanager—StacyBraunAssociatesInc. 29.5percentin2007-08.
InApril2008,usingourinvestmentmanager’sexpertise,
wediversifiedourportfoliobyallowingupto30percentof
theportfoliotobeinvestedinequitysecurities.Thishas
resultedinareductiontoourinvestmentriskand
increasedlong-terminvestmentearnings.PEF’snet
unrealizedandrealizedgainsdecreasedfrom$215,953in
2007-08to($476,833)in2008-09.Withthestateofthe
market,ourlosseshavebeenminimizedwithour
conservativeinvestments.
PEF Employees:
PEFispresentlyawaitinganactuarialevaluationofpost-
retirementcostsforitsemployees.Anadhocaddendum
willbeaddedtothisreportwhenitbecomesavailable.Itis
recommendedthisbedoneagainin2011.
Funds:
AFT DEBT (Historical Information):
PEFmaintainsaPoliticalActionFundandcontributesto
UnderanarbitrationawardrenderedinMay1985,PEF
theSEIUPensionFund.PEF’sLegislativeDepartment
wasorderedtopayNewYorkStateUnited
administersthePoliticalActionFund.Itisusedforpolitical
Teachers/AmericanFederationofTeachersinexcessof$9
contributionsapprovedbytheExecutiveBoardandforthe
millioninbackpercapitaduesfortheperiodMarch1983,
day-to-dayoperationsoftheLegislativeDepartmentfunded
throughMay1985.
fromPEF'sunrestrictednetassets.Forfiscalyear2008-
www.pef.org
OnMarch31,2009,
T
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