VIRGINIA GOVERNMENTAL EMPLOYEES ASSOCIATION2 VIRGINIA GOVERNMENTAL EMPLOYEES ASSOCIATION ISSUE 6,...

FORESightProposed Budget Contains More Than $279 Million in New Funds to Support Increased State Employee Costs

VIRGINIA GOVERNMENTAL EMPLOYEES ASSOCIATION Issue 6, 2013 Newsletter

w.

w w w . v g e a . o r g

Governor Robert F. McDonnell unveiled proposals for his outgoing budget on December 17. These proposals are embodied in the 2014-2016 biennial

budget that will be considered by the 2014 General Assembly. Newly inaugurated Governor Terry McAuliffe will have very limited opportunities to propose changes to that budget. For state employees, the proposed budget contains more than $279 million in new funds to support the increased costs of state employees’ salaries and benefits. What follows is a comprehensive summary of budget items which directly affect state employees.

The biennial budget implements the initial recom-mendations of the State Employee Compensation Work Group established last year:

• Adds $9 million the first year and $11.1 mil-lion the second year to provide targeted 2% base compensation adjustments to 19 employee classes with extraordinarily high turnover rates in the judicial, public safety and health care fields. • Provides funding of $75,000 during both years to develop an online exit in-terview for employees leaving state service. The survey is designed to collect

and analyze information regarding the reasons employees leave state service.

• Includes $800,000 in the second year to update the total compensation study done by the Joint Legisla-tive Audit and Review Commission.

• Provides funds to purchase software to enhance the Department of Human Resource Management’s analytical capabilities ($150,000 the first year and $100,000 the second year).

Increases funding by $24.6 million the first year and $59.3 million the second year for the employer

share of the increase in health insurance premiums for the State Employee Health Insurance Program. The increases are attributable to rebuilding the Health In-surance Fund (HIF) reserves, waving Tier 1 and 2 co-pays for asthma and hypertensive medications, and establishing an on-site state employee clinic near Capitol Square.

Savings of $4.9 million each year are realized by: 1) increasing 30-day supply co-pays by $5 for Tier 2, 3 and 4 prescriptions filled at retail; 2) increasing 90-day supply co-pays by $10 for Tier 2, 3 and 4 prescriptions filled by mail; and 3) Design changes for the Value Based Insur-ance plan.

Establishes a specific internal service fund appro-priation for the State Employee Health Insurance Fund with an appropriation of $1.06 billion in each year of the biennium. Previously this account had a sum sufficient appropriation.

The budget also proposes a one-time state employee bonus equal to 2% of base pay on December 1, 2014. Employees eligible to receive a bonus payment under this action must “meet expectations” on annual performance evaluations. The bonus is contingent on a year-end general fund surplus on June 30, 2014 of at least $107.8 million, twice the cost of the 2% bonus of $53.9 million. This approach is similar to the one used to implement the one-time 3% bonus in FY 2012.

An additional 1% one–time bonus payment on Decem-ber 1, 2014 is also proposed for those who “exceed ex-pectations” on their annual performance evaluations. This phase of the bonus is contingent on an additional year-end general fund surplus on June 30, 2014 of at least $7.0 mil-lion, twice the cost of the 1% bonus of $3.5 million. Continued on page 6

$ $ $$$$

By the time you read this, we will be neck deep in dealing with issues at the 2014 General Assembly session. While slow starting due to the gubernatorial

transition and all that follows a change in state leadership, the pace has now quickened considerably.

Governor McAuliffe has his leadership team in place and the expected realignment of Committee membership in the House (due to retirements and election defeats) has

been completed. A new Secretary of Administration, Nancy Rodriguez, has been seated and has already reached out to the VGEA leadership to discuss issues of concern to state employees.

The Governor is retaining Sara Redding Wilson as the Director of the Department of Human Resource Management, an action that the VGEA applauds. Director Wilson

has been the most accessible DHRM director we have ever dealt with and while we might not always agree, her door has always been open to us and she is willing to listen.

She is also a fixture at the VGEA Annual meeting and one of our most popular presenters. We look forward to con-tinuing that relationship. The leadership in the Senate remains unchanged at this writing but could change de-pending on the outcome of the recount for the 6th Senate District seat election (nine votes separate the winner and loser) in Hampton Roads. The January 21 special elec-tion for the 33rd Senate District seat representing parts of eastern Loudoun and western Fairfax counties was won by Democrat Jennifer Wexton. For any potential leader-ship change to occur in the Senate, the democrats need to retain both seats, which were vacated when former demo-cratic senators Ralph Northam and Mark Herring assumed the offices of Lieutenant Governor and Attorney General respectively. The resulting 20-20 tie between democrats and republicans would put democrats in the position of using a Northam tie-breaking vote to attempt to reas-sert control of that chamber. Such action would likely sour

what has thus far been an amicable General Assembly ses-sion.

With the retirement of long time chairman Lacy E. Putney from the House, the leadership of the House Appropria-tions Committee has passed to Delegate Chris Jones (see separate article on this change on page 3). The VGEA lobbying team will miss retired Chairman Putney and ap-preciate all he has done for state employees during his record-setting service. However we believe that the new Chairman Chris Jones knows state employee issues well and the VGEA looks forward to continued good relations with him in his new role.

We have a number of items in play this year, ranging from a base salary increase to an increase in the retiree health care credit, on behalf of both active and retired employ-ees. (For details see the separate article on VGEA legisla-tive priorities on page 3.)

Our VGEA lobbying team is working for passage of these items every day in the offices and halls of the General Assembly Building and Capitol. This year, we have added VGEA Communications Director Johnna Cossaboon to the lobbying team, thereby raising our profile even further and bringing a much needed woman’s point of view. We have a great lobbying team but we are much more effective with your help.

Please plan to join us for our Legislative Day on the hill on February 17. Each year, the participation in this event grows a little more and we hope this one will be the largest yet. We will also be asking you to contact your legislators by email or phone call on specific issues at vari-ous critical times during the legislative process. Watch the VGEA eNews for these legislative alerts and calls to action as a timely response by a large number of state employ-ees and retirees can be the difference in whether or not one of our items moves forward. You never hesitate to let us know what you think. Don’t stop – but also take the time to become engaged in this process that is so im-portant to you and your family.

Thank you for your continued involvement and support!

Ron

R. Ronald JordanVGEA Executive Director

2 VIRGINIA GOVERNMENTAL EMPLOYEES ASSOCIATION ISSuE 6, 2013 NEWSLETTER www.vgea.org VIRGINIA GOVERNMENTAL EMPLOYEES ASSOCIATION ISSuE 6, 2013 NEWSLETTER www.vgea.org 3

e x e c u t i v e d i r e c t o r ‘ s m e s s a g e

General Assembly Session Revs Up – New Year Looks to be Fruitful for VGEA!


p r i o r i t i e s & a p p r o p r i a t i o n s

Delegate S. Chris Jones (R-Suffolk, pictured below) has been named Chairman of the House Appro-priations Committee by Speaker of the House

William J. Howell, succeeding Lacey E. Putney who recently retired.

Prior to being elected to the General Assembly in 1996, Jones served on the City Coun-cil and as Mayor of the City of Suffolk. He is a pharmacist by profession and outside of the General Assembly session can still be found working shifts at his Bennett’s Creek Pharmacy in the Chuckatuck section of Suf-folk. Jones has served on the Appropriations Committee since 1999 and most recently chaired the Compensation and Retire-ment Subcommittee, which is

the group most responsible for overseeing state employee and retiree matters.

Shortly after assuming the Chairmanship, Jones appointed Delegate Charles D. Poindex-ter (R-Glade Hill) to head the Compensation and Retire-ment Subcommittee. He was first elected to the General As-sembly in 2008, and Poindexter (shown right) had previously served as a member of the that subcommittee for the past two years. He is a farmer by pro-fession and hails from Smith Mountain Lake.

The VGEA looks forward to working with these Chairmen and the other new leaders and committee members at Ap-propriations.

S. C. Jones to Lead House Appropriations Committee; Poindexter Compensation & Retirement Subcommittee

The 2014 General Assembly began on January 8 and the VGEA’s four lobbyists are off and running! The bulleted items below are our association’s Legisla-

tive Priorities and the bills and narratives underneath show how we are striving to accomplish them. Go to http://lis.virginia.gov and enter the bill number to fol-low the legislation that you wish to track. Virginia’s Leg-islative Information System enables you to track a bill or amendment all the way from filing through enactment.

Salary ISSueS• The December 2013 DHRM Salary Survey (http://www.dhrm.virginia.gov/reports/AnnualSalaryReport2013.pdf) shows employee salaries – after making some prog-ress in 2013 – still lag behind private sector compa-rables by 18.2 percent. ⇒ Provide funding for a base salary increase to

begin to close the gap in market lag⇒ Implement a performance payment incentive

plan that rewards employees based on levels of perfor-mance ⇒ Further address Salary Compression (new hires

making more than senior employees) which remains a sig-nificant issue

Governor McDonnell’s proposed budget included a two percent state employee bonus for December 2014, which would be contingent on satisfactory worker performance and a year-end general fund balance that is twice the total bonus cost.

In place of this bonus plan, the VGEA is advocating for a permanently funded performance payment incentive plan. A budget amendment (Item 467 #3s, patroned by Sena-tor Colgan) is currently pending in the Senate which, if passed, will accomplish this for active state employees for the next two years.

This would enable employees to count on that money – in-stead of having a bonus contingent on possible savings. VrS FundIng• Maintain the commitment to repay the retirement system and meet the full actuarial funding status

There are many bills pending in the legislature that could affect VGEA members who have their retirement savings entrusted to the VRS. They are:

Continued on page 4

2014 VGEA Legislative Priorities and General Assembly Session Initiatives

Del. S. Chris Jones Del. Charles D. Poindexter


MARK BARON, Attorney at Lawwww.markbaron-law.com

Dedicated to saving careers of State and Local Government Employees all over Virginia for 25+ yrs. Including non-dismissal or dismissal grievance cases, and unfair performance evaluation grievance cases. These are not easy – don’t be fooled or mislead by Human Resources or anyone else about this. Know your legal rights. It’s always best to consult an independent, experienced legal professional before filing any grievance case. Your career is worth it! Author of unique books on winning

strategies and real cases in state/local/federal government grievance or MSPB cases. See amazon.com (Search books under: “Mark Baron”). *Free Initial Phone Call* Reasonable Rates*

CALL (804) 662-5761; AFTER HOURS (804) 740-7073

v g e a ‘ s l e g i s l a t i v e i n i t i a t i v e s Continued from page 3

HB 178 Virginia Retirement System; assumed rate of re-turn on investments for employer contributions.HB 181 Virginia Retirement System; collection of overpay-ments to retirees and beneficiaries. HB 514 Virginia Retirement System and local government retirement systems; investments. HB 686 Virginia Retirement System; retirees hired as school board security personnel.HB 688 Virginia Retirement System; management of as-sets of nongovernmental investors. HB 983 Virginia Retirement System; retirement credits for special forest wardens. SB 87 VRS; technical amendments to programs adminis-tered by System.SB 89 Virginia Retirement System; disability program for hybrid retirement plan participants. SB 385 Virginia Retirement System and local government retirement systems; investments. SB 420 Virginia Retirement System; impact statements.

HealtH InSurance• Hold premium costs down and replenish Health In-surance Fund reserves• Increase the retiree health credit (currently only $4 per month per year of service). Needs to be raised – it has been the same for the past 14 years!

SB 103 Health insurance; credit for retired state employ-ees.SB 109 Health insurance; credit for certain retired em-ployees. HB 19 Health insurance; contraception coverage if sub-scriber or enrollee requests such coverage.HB 20 Health insurance; no health insurance plan is re-quired to include contraception coverage, etc.HB 304 Prescription drugs; specialty tier coverage.HB 308 Health insurance; prescription drug formularies, notices.HB 368 Eye care coverage; carrier practices.HB 463 State health plan; participation by employees of local school divisions. HB 765 Health care policy, group health benefit plan, and health plan; definitions.HB 1104 Retired state employees; health insurance credit.

SB 464 Department of Human Resource Management; state health plan.

lIFe InSurance• Establish a minimum threshold for retiree life insur-ance coverage to ensure that final benefits are sufficient to cover funeral and burial costs

HB 1105 Life insurance for retired state employees.SB 101 LIfe insurance; optional coverage for retired state employees.SB 102 Life insurance; coverage for retired state employ-ees.

equal employment • Strengthen fair treatment of all state employees in the workplace, regardless of their age, race, gender, eth-nicity, national origin, religion or sexual preference

SB 248 Discrimination; prohibited in state employmentHB 417 Virginia Human Rights Act; public employment, prohibited discrimination, sexual orientation.

Inauguration Day Visit to Richmond

See anyone famil-iar under the big umbrella?

Yes, it’s former Secretary of State Hillary Clinton and Former President Bill Clinton, good friends of Gover-nor Terry McAu-liffe, in town for his inauguration on January 11.

In the row under them are Senator Walter Stosch and his wife Eleanor.

The week leading up to the January 11 inauguration of now Governor Terry McAuliffe was filled with much excitement and anticipation around the Capitol – and

among those of us who are not fond of rain – more than a little dread. The weather forecast was for rain, a 100 per-cent chance. Every me-teorologist predicted the same thing. And they never wavered.

If you were fortunate enough to obtain tick-ets to the event, which took place on the lawn in front of the Capitol, you also re-ceived a list of Prohibited Items. On that list was UMBRELLAS.

The McAuliffe team, not willing to torture their guests by slow drowning, worked out a way to have umbrellas safely checked by the Capitol Police and removed them from the Prohibited Items list the day prior to the inauguration.

When folks arrived at the event, the grounds were muddy if you ventured off the brick and cement paths, but there was little reason to do that, once you made it through the entrance and security/ticket checkpoints. Tubs of free clear green- and blue-tinted plastic ponchos were available for everyone to pick up and use, and nearly each person in the audience wore one, except for the gentlemen in for-mal morning wear (tuxedos with tails). The ponchos would definitely ruin their look.

The event was soggy, but was still wonderful and memo-rable, with the Gospel choir of Virginia State University singing and the Virginia Native American Tribes doing a lively Celebration Dance in honor of the Commonwealth’s 72nd Governor.

The three new officials were successfully sworn in with their family members by their sides, and during Governor McAuliffe’s Inaugural Address the only bright burst of sun-light we would see the entire day came through the clouds and brightened the new Governor at the podium. That light added to the essence of optimism and bipartisanship that ran through his message, with the theme of Common Ground.

Here is part of Governor McAuliffe’s Executive Order #1, which he signed immediately following his inaugura-tion, and applies directly to state employees:“By virtue of the authority vested in me as Governor, I hereby declare that it is the firm and unwavering policy of the Commonwealth of Virginia to assure equal opportunity in all facets of state government. The foundational tenet of this Executive Order is premised upon a steadfast commit-ment to foster a culture of inclusion, diversity, and mutual respect for all Virginians.

This policy specifically prohibits discrimination on the basis of race, sex, color, national origin, religion, sexual orienta-tion, gender identity, age, political affiliation, or against otherwise qualified persons with disabilities. The policy permits appropriate employ-ment pref-erences for veterans and specifi-cally pro-hibits dis-crimination against veterans.”

For more information about this or other Executive Orders or news about Governor McAu-liffe, visit https://governor.virginia.gov


i n a u g u r a t i o n 2 0 1 4 v g e a ‘ s l e g i s l a t i v e i n i t i a t i v e s

Swearing In of Governor McAuliffe, Lieutenant Governor Northam and Attorney General Herring Very Wet with an Appropriate Burst of Sun

VGEA’s Director of Member Services Sonya Williams (right) was photographed at one of the Inaugural Balls with friend Tiffany Thomas, director of pro-grams at Partnership for the Future, a local non-profit (www.partnershipforthefuture.org).

VGEA’s Communications Director Johnna Cossa-boon attended the Inauguration and wrote this account. Corden Bohannon also attended and photographed the event for ForeSight.


m e e t y o u r v g e a l o b b y i s t s

ForeSight is a publication for members and friends of the Virginia Governmental Employees Association. It is published six times annually and welcomes comments and ideas from VGEA members.

Johnna L. Cossaboon......................................EditorVGEA Communications [email protected], 804-228-4513

R. Ronald Jordan.......Executive Director & Contributor

Jim Roberts............................Lobbyist & Contributor

The Virginia Governmental Employees Association is a volun-tary, non-partisan membership organization whose mission is to voice the concerns of active and retired public employees and to advocate solutions, which promote individual dignity, equitable com-pensation, professionalism, and safe working conditions.

FORESight

Continued from page 1

Adds $75.6 million each year for the increased employer Virginia Retirement System contribution rates for employ-ees in the four state employee VRS plans. This constitutes 80% of the VRS Board established rate. The proposed rates and funding are based upon the schedule adopted by the 2012 General Assembly in its move toward 100% funding by 2018.

Provides an additional $11.7 million each year for changes in the employer premiums for state employee group life insurance, the Virginia Sickness and Disability Plan and the state retiree health insurance credit.

The VGEA supports the increased funding to implement the State Employee Compensation Work Group recom-mendations and offset health care cost increases, as well as increased funding for VRS contributions and post-em-ployment benefits. We will be seeking a base pay increase to deal with the ever increasing market-lag in pay (where state salaries trail comparable private sector salaries) and to convert the proposed bonus into a permanent perfor-mance incentive payment system.

Your VGEA Lobbying TeamJohnna Cossaboon, Communications Director, [email protected](See photo page 5)

When Johnna Cossaboon joined VGEA in 2010, she brought a depth of marketing communications manage-ment experience in very diverse industries, including healthcare, music and financial services. This year is her first year as a lobbyist for VGEA. Her communication skills have translated well in all business interactions throughout her career, and Association Management and lobbying have proven to be no different.

At VGEA, Cossaboon handles communications including the website, newsletters, brochures, social networking and other means of messaging. Her decades of experi-ence and master’s degree in corporate communications from Rowan University are flexed daily as she works with members and staff to design and deliver strategies that work. Continued on page 7

Bills have been introduced in both the Virginia House of Delegates and the Senate of Virginia, to advance long standing concerns of state retirees – life insur-

ance and the health insurance credit. Delegate Riley Ingram, (R-Hopewell) and Senator Frank Ruff (R- Clarksville) have introduced legislation to provide for a floor on retiree life insurance, indexed in the future to Cost of Living Adjustments, and to increase the Retiree Health Insurance Credit from $4 per year of service credit to $5 per year per month.

Both men are great supporters of state employees and VGEA. The life insurance change would provide a mini-mum floor for those long retired or those who retired at a low pay level at separation to ensure minimum payments cover funeral and burial expenses. The Health Insurance Credit has not been increased in 15 years, while every-one knows health premiums have skyrocketed during that same period. In case you missed these important initia-tives on pages 3-4, the bills to watch and support are:

HB 1104 Health insurance; credit for retired state employees.HB 1105 Life insurance; basic coverage for retired state em-ployees.SB 101 LIfe insurance; optional coverage for retired state em-ployees.SB 102 Life insurance; coverage for retired state employees.SB 103 Health insurance; credit for retired state employees.

VGEA encourages its members and their family members

to thank both of these gentlemen, and communicate your support to them, as well as your own delegates and senators via phone, letter or email soon.

Retiree Issues Move to the Forefront


m e e t y o u r v g e a l o b b y i s t s Continued from page 6

R. Ronald Jordan, Executive Director, [email protected](See photo page 1)

Ron Jordan joined the VGEA team in 2005, serving first as a key lobbyist and then as executive director since 2008. Under his leadership, the VGEA has become a major force at the Virginia General Assembly. Jordan has been instru-mental in establishing VGEA’s Political Action Committee

and has led the VGEA in developing major legisla-tive policies on matters from salary increas-es to pension structures. Jordan also initiated the

“VGEA Blueprint for the Future,” a strategic plan for as-sociation expansion that has led to new member services and an increase in membership. In addition to his VGEA position, he serves as vice chairman and managing direc-tor of Advantus Strategies, LLC, a consulting firm in down-town Richmond.

Jordan has extensive policy, program, and budget expe-rience which he gained during nearly 30 years of state and local government experience. During that time, he worked as a senior staff member of the Virginia House of Delegates Appropriations Committee and the Governor’s cabinet. His specific areas of expertise include appropria-tions, finance, technology, public safety and natural re-sources. Jordan was the former Deputy Secretary of Public Safety during Governor James S. Gilmore, III’s administra-tion, with 11 agencies and 21,000 employees. In this role he was responsible for manpower, fiscal, legislative and technology matters, while acting as legislative point per-

son for public safety policy and budget initiatives. Prior to joining the Appropriations Committee staff in 1987, he was Director of Planning and Research for the Virginia State Police.

He currently serves on the Board of Directors for the Vir-ginia YMCA and the Henrico County Drug Court Steering Committee. Jordan holds a B.S. in Criminal Justice from Virginia Commonwealth Uni-versity, a master’s in Public

Administration from Auburn University with additional post-graduate work at the University of Alabama. He is also a graduate of the Virginia Executive Institute and has served as an adjunct faculty member at VCU at both the graduate and undergraduate levels.

Jim Roberts, Lobbyist, [email protected]

With more than 35 years of experience in various state government positions, Jim Roberts brings a wealth of knowledge about government operations and management to his position as a VGEA Lobbyist. Before working for the VGEA, he served as Deputy Secretary of Administra-tion and Deputy Secretary of Public Safety in the cabinet administrations of two governors. Other state posts Rob-erts has held include Director of Virginia’s Department of General Services, Director of Finance and Administration for the Virginia Information Technologies Agency and the Science Museum of Virginia. Roberts was also Deputy Staff Director of the Appropriations Committee of the Virginia House of Delegates and he has held several positions with the Departments of Corrections and Criminal Justice Ser-vices.

A Virginia native, Roberts earned his bachelor’s degree from Hampden-Sydney College. His graduate work was done at Virginia Commonwealth University, the J.F.K. School of Government at Harvard University, and the Vir-ginia Executive Institute. He is also a Marine Corps vet-eran.

Martin K. Johnson, Lobbyist, [email protected]

Martin K. Johnson, has lobbied for the VGEA for four years. He is a government affairs and real estate consultant and was the former Director of Public Policy and Government Relations for the Virginia Association of REALTORS®. Prior to that he was a Policy Assistant to the Secretary of Ad-ministration and for Governor James S. Gilmore III. With his policy experience representing REALTORS® and a fam-ily tradition steeped in real estate, it is natural that he is also active with Capital Realty & Investment Company.

Johnson is well respected as an effective advocate for clients before the Virginia General Assembly and enjoys a solid relationship with the members of the General As-sembly on both sides of the political aisle. His diligent and practical approaches to prob-lem solving are highly valued.

“When you add up our years of government experience, the VGEA

Lobbying Team has over 100 years between us.”

Executive Director Ron Jordan

Jim Roberts Martin Johnson

VirginiaGovernmentalEmployeesAssociation

Sp

ecia

l Leg

isla

tive

Issu

e 20

13-2

014

FORESightVirginia Governmental Employees Association1011 E. Main Street, Suite 400, Richmond, Virginia 23219(804) 355-3120 Toll Free (877) 302-7146 Fax (804) 228-4501www.vgea.org email: [email protected]

PRESORTSTANDARD

U.S. PostageP A I D

Permit # 9Richmond, VA

FORES

ight

Attend VGEA Legislative Day – Monday, February 17. RSVP to 877-302-7146 or email [email protected]. For more information, see your weekly VGEA eNews!

VIRGINIA GOVERNMENTAL EMPLOYEES ASSOCIATION2 VIRGINIA GOVERNMENTAL EMPLOYEES ASSOCIATION ISSUE 6,...

Documents

Transcript of VIRGINIA GOVERNMENTAL EMPLOYEES ASSOCIATION2 VIRGINIA GOVERNMENTAL EMPLOYEES ASSOCIATION ISSUE 6,...