The Communicator October 2011

3. Expenses for the five statewide officers and Trustees (listed below):

OFFICERS’ EXPENSES 2005-06

Mileage

Public Transport 13,424 Lodging

Cell Phones

Other (tolls, etc.) TOTALS*

7,409 2,464

$56,219

Training/Conf. Fees 130 Meals

$15,437 13,389 3,967

2006-07 2007-08 2008-09 2009-10 $13,771 $ 3,205 $ 2,245

19,775 34,458 535

5,143 6,111 3,689

TRUSTEES’ EXPENSES 2005-06

Mileage

Public Transport Lodging

Training/Conf. Fees Meals

Other (tolls, etc.) EOL

TOTALS*

$ 69 323

3,634 0

119 51

3,815 $8,011

13,701 20,639 292

1,668 5,122 1,352

14,264 13,071

$ 3,031 14,120 11,600

666

8,135 663

2010-11 $ 6,425

15,004 14,368

7,800 00 2,535 5,655 651

3,417 8,352 895

$83,481 $45,980 $46,222 $38,216 $48,465

Membership: PEF revenue is comprised of dues paid by PEF members and

agency-shop feepayers. Dues income is collected in the pay period for which New York State pays members’ salaries. As of March 31, 2011, PEF had a membership totaling 55,210, down 3,497 from 2009-10. The following chart shows the breakout by dues-paying members and feepayers:

2006-07 2007-08 2008-09 2009-10 $ 357

188

1,947 2,925 119 29

12,165 $17,730

$1,342 10

1,113 0

426 83

6,320 $9,293 Banking and investments:

Banking: PEF’s banking relationship with Bank of America has given

us access to state-of-the-art banking technology, which has improved PEF’s internal operations, and the use of “positive pay” technology negates the possibility of fraudulent checks being paid. The online banking system also was set up with a “dual approval” restriction, which means no single individual can access funds without someone else’s oversight and approval. Now, 40 PEF divisions have moved to the purchase-card

system. With the purchase-card system, divisions have been issued declining-balance purchase cards backed by VISA. In using the purchase cards, divisions have reduced the amount of paperwork and reporting since all purchase-card transactions are approved online and downloaded into the PEF accounting system. Reports are generated and mailed on a quarterly basis along with information for the audit.

Investment Changes: PEF continues to move more monies to be handled by our

investment manager, Stacy Braun Associates Inc. PEF’s net unrealized and realized gains decreased from $549,025 in 2009- 10 to $452,296 in 2010-11.

PEF Employees: An actuarial evaluation of post-retirement costs for PEF’s

employees was completed in December 2009, and a roll-forward was completed for the 2009-10 and 2010-11 fiscal years. As a result, the accrued post-retirement liability for PEF staff increased to $9,824,640, our largest liability. This represents the valuation of health benefits owed to PEF staff in the future.

Funds: PEF maintains a Political Action Fund and contributes to the

SEIU Pension Fund. PEF’s Legislative Department administers the Political Action Fund. It is used for political contributions approved by the Executive Board and for the day-to-day operations of the Legislative Department funded from PEF's unrestricted net assets. For fiscal year 2010-2011, $942,002 was spent to cover its operations and political contributions costs.

Page 14—The Communicator October 2011

AFT debt (historical Information): Under an arbitration award rendered in May 1985, PEF

was ordered to pay New York State United Teachers/American Federation of Teachers in excess of $9 million in back per capita dues for the period March 1983 through May 1985. As of December 11, 2010, PEF’s debt has been satisfied.

There is no outstanding balance and the legal controversy between PEF and AFT over the payment of dues has now been completely resolved.

Divisions and regions: PEF has approximately 233 divisions and 12 regions.

Divisions are required to submit, on a timely basis, quarterly expenditure reports and year-end fiscal audits to PEF. Failure to do so will result in forfeiture of the division’s per-capita

PEF Information Line: 1-800-553-2445

$1,827 712 336

0 58 5,135 $8,156 $1,469

489 83

3,735 $7,811

2010-11 $ 970

88 00 2,034 0

1,450 0

352 53

5,680 $8,504

Union affiliations: PEF is a per-capita-paying member of both the American

Federation of Teachers (AFT) and the Service Employees International Union (SEIU). We have a 50/50 split of our membership into each affiliate. For fiscal year 2010-2011, PEF paid a total of $9,548,690 in

per capita dues to AFT and SEIU. This represented 24.9 percent of our total expenses, compared to 29.6 percent in 2009-10. The decrease is directly related to the decrease in the membership and a change in the calculation of full-time and part-time members reported to AFT.

Trustees’ Report

Page 1 | Page 2 | Page 3 | Page 4 | Page 5 | Page 6 | Page 7 | Page 8 | Page 9 | Page 10 | Page 11 | Page 12 | Page 13 | Page 14 | Page 15 | Page 16 | Page 17 | Page 18 | Page 19 | Page 20 | Page 21 | Page 22 | Page 23 | Page 24 | Page 25 | Page 26 | Page 27 | Page 28 | Page 29 | Page 30 | Page 31 | Page 32 | Page 33 | Page 34 | Page 35 | Page 36