TRUSTEES’ REPORT


Expenses of the five statewide officers: (Fiscal Year April 1 – March 31)


OFFICERS’ EXPENSE Mileage Car Rental


2009-10 2010-11 $ 3,031 $ 6,425


$


Training/Conf. Fees $ Meals


Cell Phones


Other (tolls, etc.) TOTALS


0 $ 0


Public Transportation $ 14,120 $ 15,004 Lodging


$ 11,600 $ 14,368 0 $ 0


$ 666 $ 3,417 $ 8,135 $ 8,352 $ 663 $ 895 $38,216 $48,465


Banking and investments:


TRUSTEES’ EXPENSE 2009-10 2010-11


Mileage


Public Transportation $ 0 $ 0 Lodging


Training/Conf. Fees $ 0 $ 0 Meals


TOTALS


Other (tolls, taxis, etc.) $ 83 $ 53 EOL


$ 7,811 $ 8,504


$ 1,469 $ 970 $ 2,034 $ 1,450 $ 489 $ 352 $ 3,735 $ 5,680


2011-12 $ 1,401


$ 0 $ 815 $ 0 $ 329 $ 73 $ 5,225 $ 7,844


Banking: In 2008, an RFP (request for proposals) was sent out for PEF’s


banking needs. In addition to actual services, PEF was looking for a banking institution that had locations convenient to themajority of PEF divisions. Ultimately, Bank of America was selected over the other banks that responded because it hadmore locations within close proximity to the divisions. PEF’s banking relationship with Bank of America has given it


access to state-of-the-art banking technology, which has improved PEF’s internal operations and negated the possibility of fraudulent checks being paid through the use of “positive pay” technology. The online banking system was also set up with a “dual-approval” restriction, which means that no one individual can access funds without someone else’s oversight and approval. There are now 52 divisions that 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 card, 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: Overall, the fair value of PEF’s investment portfolio has increased by $665,870 within fiscal year 2011–12.


INVESTMENT FUND BALANCES 2011-2012 Fiscal Year


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


SEIU. PEF has a 50/50 split of its membership into each affiliate. For fiscal year 2011-12, PEF paid a combined total of


www.pef.org


$9,271,005 in per capita dues to AFT and SEIU. This represented The Communicator November 2012—Page 23


2011-12 $ 6,917


$ 3,969 $ 12,621 $ 14,760 $ 0 $ 1,590 $ 7,740 $ 1,144 $48,741


PEF employees’ post-retirement benefits: PEF employees, per negotiated benefits, have the ability to use


the value of their accrued sick leave as payment toward health insurance premiums in retirement. Prior to 2008, PEF had always recorded the year-end value of sick leave as a liability. In 2008, there was a change in the accounting standards that required this liability to be recorded with future costs estimated and included. A full actuarial analysis was done in the 2008-09 fiscal year and a roll-forward was computed for the 2009-10 and 2010-11 fiscal years. There is a requirement that a full actuarial analysis be completed every three years, so for the 2011-12 fiscal year, Milliman, Inc. did another full analysis. As a result of changes to the premium equivalents used by


PEF, changes in the insurance packages offered, and a change in the discount rate, the liability had a significant decrease from the 2010-11 fiscal year when it was valued at $10,054,255 to the 2011-12 value of $7,591,540. This item is PEF’s largest liability. So, any changes to policies


that may increase this liability should be carefully considered, since they may affect PEF’s banking relationships and ultimately its solvency.


Funds: PEF has a legislative office and maintains a Political Action


Fund that 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 2011-12, $899,656 was spent to cover its operations. Reports are filed with the NYS Board of Elections detailing, on a quarterly basis, contributions made to various candidates from the Political Action Fund. PEF also maintains a COPE (Committee on Political Education)


Fund which is comprised of volunteer contributions from members. PEF is not allowed to make direct contributions at the federal level. As a result, COPE Funds are routed to its parent unions, the American Federation of Teachers (AFT) and the Service Employees International Union (SEIU). Reports are filed with the Federal Elections Commission detailing the receipt and disbursement of COPE funds on a quarterly basis.


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, 2012, PEF had a membership totaling 53,358, down 1,852 from 2010-11. The following chart shows the breakout by dues- paying members and feepayers:


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