Capital Operating grouprates.ThisprogramisoutsidetheoperationsofPEFandis
Leases Leases notincludedwithintheaccompanyingconsolidatedfinancial
2010 $ 133,979 639,469
statements.PEFisnotresponsibleforthedebtsofthe
2011 133,979 581,593
MembershipBenefitsProgramandanyremainingassetsupon
2012 133,979 570,889
terminationoftheprogramreverttotheparticipatingmembers
2013 133,979 576,016
andnottoPEF.
2014 100,484 561,814
Total $ 636,400 $2,929,781
PEFincurscostsonbehalfoftheprogram,whicharebilledtothe
MembershipBenefitsProgram.Includedinotherreceivablesat
Lessamountsrepresentinginterest 93,234
March31,2009and2008arereceivablesfromtheprogramfor
PresentValueofNetMinimum
$392,652and$253,101,respectively.TheMembershipBenefits
Lease Payments 543,166
ProgramoccupiesspaceinPEF’sheadquartersonamonthto
Lesscurrent
monthleasewithPEFrequiringminimumpaymentsof$2,661
maturitiesofcapital
monthlyplustheproportionateshareoftaxes,utilitiesand
leaseobligations 100,383
commonareacosts.
CapitalLeaseObligations,
netofcurrentmaturities $ 442,783
PEF Travel
Totalrentalexpenserelatedtooperatingleaseswas$627,635and
PEFTravelwasestablishedbytheMembershipBenefitsProgram
$655,354fortheyearsendedMarch31,2009and2008,
toofferdiscountedtravelformembersandstaff. PEFTravelis
respectively.Leaseagreementsfrequentlyincluderenewaloptions
outsidetheoperationsofPEFandisnotincludedwithinthe
andrequirePEFtopayutilities,taxes,insuranceand
accompanyingconsolidatedfinancialstatements. PEFisnot
maintenance.
responsibleforthedebtsofPEFTravel.
PEF,aslessor,leasescertainofficespaceinitsmainoffice
Inthe2007–2011contractbetweenPEFandUSW,theemployees
buildingonamonth-to-monthbasis.Minimummonthlyrental
ofPEFTravelbecameeligibletoparticipateintheSEIUPension,
paymentsare$2,661permonth.
401(k)PlanandHealthInsurancePlans. Similartothe
agreementswiththeMembershipBenefitsProgram,PEFTravelis
7. LITIGATION
billedforthecostoftheseplansaswellasforpostage,
reproduction,andrentforthespacePEFTraveloccupies.
UnderanarbitrationawardrenderedinMay1985,PEFwas
IncludedinotherreceivablesatMarch31,2009and2008are
orderedtopayNewYorkStateUnitedTeachers/American
receivablesfromPEFTravelfor$4,789and$-0-,respectively.
FederationofTeachers(AFT)inexcessof$9millioninbackper
capitataxesfortheperiodMarch1983throughMay1985.
Retirees’ Fund
Duringfiscal1988,aStateSupremeCourtdecisionvacatedthe
awardinitsentirety.However,AFTsubsequentlyappealedthe TheFundwasestablishedtoprovidevariousservices,suchas
decisionand,inMay1989,theAppellateDivisionreversedthe continuinginsuranceandseminars,toretiredPEFmembers.
lowercourtdecision,therebyawardingAFTapproximately$9.2 ThisFundisoutsidetheoperationsandcontrolofPEFandisnot
millionofbackpercapitataxes.In1989,PEFattemptedtoappeal includedwithintheaccompanyingconsolidatedfinancial
thedecisionoftheAppellateDivision. statements.PEFincursvariouscostsforpayroll,benefitsand
officeexpensesonbehalfoftheRetirees’Fund,whichitbillsto
OnMarch27,1990,theCourtofAppealsdeniedPEF’smotion theFund.IncludedinotherreceivablesatMarch31,2009and
andreaffirmedthejudgmenttoAFTofapproximately$9.2million 2008arereceivablesfromtheFundfor$8,601and$27,857,
forpercapitataxes.DuringthefiscalyearendingMarch31, respectively.
1991,AFTmadeamotiontotheStateSupremeCourttobe
awardedprejudgmentdateinterest. InJune1991,theState 9. FUNCTIONALEXPENSES
SupremeCourtgrantedAFT’smotionforprejudgmentdate
interest. Interestontheoutstandingbalanceaccruesattherate PEF’sexpensesbyfunctionalactivitywereasfollows:
of9%annually.Eachyearsince1991,AFThasunilaterally
forgivenonetwentiethofthetotaloutstandingprincipalbalance
2009 2008
andtheannualaccruedinterestamount. Membershipservices $15,244,908 $13,638,669
Administrationandsupport 3,964,373 3,494,355
AFThasnotsoughtenforcementofthejudgmentinthepast,but Grantsandcontractsactivities 511,547 372,996
rather,asnoted,hasforgivenaportionoftheindebtednessand Labormanagementactivities 2,707,031 2,843,770
interest.ItisnotpossibletopredictwhetherAFTwillseekto Legislativeandpoliticalaction 1,591,158 1,149,839
enforcethejudgmentinthefuture.Accordingly,PEFhasreported Total
_
$
_
2
__
4
_
,0
__
1
_
9
_
,
_
0
_
1
_
7
_ _
$
_
2
__
1
_
,4
__
9
_
9
_
,
_
6
_
2
_
9
_
aliabilityofapproximately$1.63million,whichrepresentsthe
judgmentamountplusaccruedinterestat9%perannumfrom
10. TEMPORARILYRESTRICTEDNETASSETS
thearbitrationdateslessamountspreviouslyforgiven.
TemporarilyrestrictednetassetsatMarch31,2009and2008are
PEFhasbeennamedasadefendantinseveralotherlawsuitsand
availableforthefollowingpurposes:
claims.Whiletheultimateoutcomeoftheseactionscannotbe
2009 2008
predictedatthistime,itistheopinionofmanagementthatthe
COPE:
dispositionoftheselawsuitsandclaimswillnothaveamaterial
Politicalcontributions $
_
1
__
8
_
7
_
,
_
9
_
6
_
6
_
$
_
2
__
7
_
4
_
,
_
5
_
9
_
8
_
adverseeffectonthefinancialpositionofPEF.
8. RELATEDORGANIZATIONS
PEFisaffiliatedwiththefollowing:
(Continued on next Page)
Public Employees Federation Membership Benefits Program
ThistrustwasestablishedtoprovidePEFmembersthe
opportunitytoobtainvariousinsuranceandotherbenefitsat
Page18—TheCommunicatorNovember2009 PEFInformationLine:1-800-553-2445
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