FROM THE PRESIDENT

By the time you read this, the budget bill should have been "repaired" by the Legislature. The
decisions made in this budget bill will impact each and every one of us - decisions about health and
income continuation insurance, the number of State employees, and your agency budgets. I hope each
member of SEA has been active in this political process and let your legislative representatives know
your position on the issues. Future budgets are projected 10 be equally as difficult - the only way the
Governor and Legislature are going to make good decisions is with active input from you.
The upcoming fall elections will be our opportunity to grade the Legislature and Governor on their
performance - our votes count and it is important for us to be active. Spend time this summer
educating yourself on the candidates and their positions. We need leaders in the State who will work
to return Wisconsin to a leader in ethical, clean, government for the taxpayers of the State.
Government for sale via privatization has got to change. Taxpayers are paying more and getting less -
it is our responsibility to make sure that is understood. The fall elections provide us an opportunity to
make a difference and together we can do it.
Speaking of elections, SEA will be also having elections this fall. Please consider running for a
statewide office. It is challenging and rewarding work - consider helping out the Association by
taking on a statewide position. See your section president for more information or contact a current
board member.

Issue of the month:
As the agencies look for ways to cut, management is being pushed into making decisions that have
potential to have serious impacts to citizens of the State. One such area is plan review. Several
members from different agencies have expressed concerns to me about plan review processes that
the State is implementing. Plan reviews are becoming thinner and thinner. Do the citizens of the State
know major projects are being shipped out with less than adequate reviews? Members are concerned
about. public safety, and cost to the taxpayers of the State. This is professional work, and it requires
time - it shouldn't be a rubber stamp process. The State doesn't call it that, but by the parameters
they set for the reviews that is what it is becoming. Under funding and staffing the review process is
what is leading to this. This is one Example SEA will be talking with the candidates for office about.
If you have data that you want to share please forward it to me. Take a moment to think about the
impacts of this budget at your agency and forward examples of waste or safety issues to the
Association so we can summarize and distribute to those that need to know.
 

Continue to be professionally and technically the best at your jobs - it's how we can best serve the
taxpayers and ourselves! The Association is YOU! Your participation is critical to the success of the
Association.

Respectfully,
Timothy R. Hanley, SEA President

Legislative Report
June 2002-Larry Legro 2nd V.P.

Senator Roger Breske (D-Eland) District 12, has agreed to be our keynote speaker for the annual
meeting of the membership in Rhinelander on October 12th. He is heavily involved with state
tourism, and is a chairman of the State Transportation Committee. District 12 includes the
Wittenburg/Birnawood, Rhinelander, Antigo, and Minoqua area. He is presently
serving his third term. I encourage you all to visit his state website (www.wisconsin.gov/legislators) or his
personal website at: http://www.legis.state.wi.us/senate/sen12/news/index.htm
There really has been not too much occurring on the legislative front, and bargaining is still dormant due
to still no state budget bill. George Mickelson, Dismas Becker and myself met
With Senator Risser in May, over our requests for a Legislative Audit of DOT. Senator Risser drafted a
letter on our behalf in his support of our request. Health Insurance continues to be the hot topic and
state employees are being hammered by the Wisconsin Manufacturer's Association over it.
Nothing is said about legislator's receiving this same benefit. I could be wrong, but doesn't the legislature
receive the exact Same health plans we do?, no mention of them in this. In addition to little or no
raises, plan on less benefits, or an out of pocket cost for some of them. If this sounds like we are going
backwards, we are. I blame the legislators- mortgaging our future, borrow and spend - keep in
mind who has been in control the longest. All of you should think about running for a local or
Board Position, or participating at some level, such as attending an meeting. SEA needs you, the
member. Who can represent us better than our own?
Elections will occur at the annual fall meeting. Watch the newsletter for more details.
 

ETF ANNUITANT ROUND TABLE (May 21, 2002)

You shouldhave recieved your new ETF newsletter on health insurances.   This newsletter will come out three times a year titled "It's your Benefit", and please provide any feedback you have on the health insuance newsletter.

Pam Henning reported on the ETF status of Act 11 implementation.  Two part-time employees came back to help with the backlog of 10,574 final calculations.  The manual calculations are taking longer.  They are now completed through June 7, 2000, and the anticipated completion of the backlog is April 1, 2003.

They are three to four weeks behind on appointments by counselors, and four weeks behind on appointments by counselors, and four weeks behind on annuitant deaths and adjusting survivor benefits.

SWIB has changed their valuation methodology for private fixed income investments.  Section Presidents and SEA state officers have copies of information and chart showing the cumulative return between 2002 and 2017.

SWIB has established a new portfolio for health for health care type investments to be managed by Jackie Doeler.  Note the Exhibit #8 chart showing the bar graphs of Russell Health Care vs. Russell 3000.  SEA board members have a copy.  The performance of Health Care is 6 to 8% above teh Russell 3000.

The next ETF Annuitant Round Table meeting is scheduled for August 20, 2002.

Melvin B. Sensenbrenner,
SEA Retirement & Health
Insurance Representative

ETF GROUP INSURANCE BOARD

The state Income Continuation Insurance (ICI) program was reported on by the Actuary
Deloitte & Touche. This plan is down this year with increased claims; however, the plan
is still funded at 115% of liabilities but the surplus has been used. There is still
8.7 million dollars in the fund (two-thirds employee and one-third employer funded).

The local government Income Continuation Insurance program is over-funded at 500% of
liabilities. They have a 59% increase in claims with 20% increased assets and the
excess funds now at 369%. The target is to maintain 200% excess.

Both of the above reports were approved by the Group Insurance Board vote.

The third item was consideration of a new long term care replacement policy by
the John Hancock Insurance Co. Remember the original long term care insurance (LTCI)
policies were handled by Health Choice, Fortis ,and underwritten by Time Insurance
in 1996. Time & Fortis LTCI was purchased by John Hancock. Since then, there has been
a 35% increase in premiums and a push by John Hancock to replace the original policies
with a new higher priced policy with increased benefits.

The new replacement policy was voted on and approved by the ETF Group Insurance
Board for LTC I by John Hancock Insurance Co.

The fourth item approved by the Group Insurance Board was to adopt the new IRO
procedure discussed at the last meeting and reported by me on page 9 of the June 2002
SEA Newsletter.

The (IRO) is an Independent Medical Review Organization totally independent
of medical staffs serving the participants in the state of Wisconsin. The IRO would
be accessed after the normal HMO grievance process has been completed.

The fifth item is federal (HIPAA) Health Insurance Portability & Accountability Act,
which is very complicated and needs more study by the private compliance officer. This law
would cover both the Standard Plan and HMO's by the Group Insurance Board. The study may
require an extension of the October 2002 implementation date.

Status of budget items: Republicans still want $10 & $20 for single & family
health care insurance coverage by state employees. As of June 14, 2002, Democrats
have dropped the early retirement proposal. SEA State Officers & Section Presidents
have copies of newspaper articles.

The next ETF Group Insurance Board meeting is scheduled for August 27, 2002.

Melvin B. Sensenbrenner,
SEA Retirement & Health
Insurance Representative