2017 ANNUAL REPORT - CSEA Employee Benefit Fund · Brothers and Sisters, we are pleased to provide you with the Annual Report of the CSEA Employee Benefit Fund for Fiscal Year 2017

2017ANNUALREPORT

ONE L EAR JET LANE

SUIT E ONE

L AT HAM, NY 12110-2395

W W W.CSEAEBF.COM

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ANNUAL REPORT 2017

CSEA Employee Benefit Fund Board of Trustees ...................................................................... 02 - 03

Message from the Chairman and Director ...................................................................................... 04

Independent Auditors' Report ................................................................................................... 05 - 06

Financial Statements

Statements of Benefit Obligations and Net Assets ......................................................................... 07

Statements of Changes In Benefit Obligations and Net Assets ..................................................... 08

Notes to Financial Statements ................................................................................................... 09 - 18

Administrative Expenses .................................................................................................................. 19

Participating Bargaining Units .................................................................................................. 20 - 28

Employee Benefit Fund Plans ........................................................................................................... 29

Administrative Staff ........................................................................................................................... 31

IT IS T H E POL ICY OF THE CSEA EMPLOYEE BENEFIT FU N D TO AFFO RD EQ UAL O PPO RTU N I TY FO R EMPLOY MEN T REGARDLESS OF RACE,

COLOR, R EL IG ION, AGE, SEX, NATIONAL ORIGIN, S EXUAL O RI EN TATI O N O R PHYSI CAL DI SABI L I TY. THE FUN D HAS TAKEN, AND WILL

CONT INUE TO TAKE, AFFIRMATIVE ACTION TO ENSURE THAT THE PRI N CI PLES I N VO LVED I N THI S PO LI CY O F EQ UAL O PPORTUNITY ARE

IM PL EM ENT ED IN PROMOTION, TRAINING, BENEFIT S AN D ALL OTHER PERSO N N EL ACTI O N.

Table of Contents

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ANNUAL REPORT 2017

CSEA Employee Benefit FundBoard of Trustees

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Danny Donohue | C H A I R M A N

CSEA President Danny Donohue is one of the most influential and well-respected leaders in the American labor movement. Donohue was the first Long Islander elected to a CSEA statewide office when he won a five-way race for Executive Vice President in 1988. In 1994, he became CSEA's 23rd Statewide President. Under Donohue's leadership, CSEA has been at the forefront of many public policy issues, including fair and responsible budgets, affordable prescription drug coverage, preserving quality health care and improving public education. Donohue has also significantly strengthened the union's role and influence in both the AFL-CIO and AFSCME, where he serves with distinction as an International Vice President. The union has grown stronger under Donohue's presidency, achieving unprecedented organizing success in the public and private sectors and today maintains a membership of nearly 300,000 strong. Donohue has long been active in the State Employees Federated Appeal and has helped to raise millions of dollars for United Way and other charities. Under his leadership, CSEA was recognized as the 1999 recipient of the Governor's Community Service Award. Donohue also serves on the Board of the International Foundation of Employee Benefit Plans and has received numerous awards and honors over the years, including the New York State Martin Luther King Institute's Leadership Award, Irish Northern Aid's James P. Connelly Award and the NYCOSH (New York Committee for Occupational Safety and Health) Award. Most recently, Donohue was awarded the Governor Hugh L. Carey award by the Irish American Heritage Museum for his contribution as a highly respected and generous community leader.

Kathy Button | SECRETARY

Kathy has been an active member of CSEA since l969, and is currently employed at Finger Lakes DDSO. She was elected Local President in 1978 and continues to serve in that capacity. Kathy became a member of the CSEA Board of Directors representing Mental Hygiene, Region 6, in the early 1980s and continues to serve as a Board member. She has served on the Statewide Negotiating Team since 1985 as well as the Statewide Labor/Management Chair for OPWDD. She has served on numerous Statewide committees and is currently the Chair for the CSEA Personnel Committee. Kathy was appointed a Trustee of the Employee Benefit Fund in April 2007.

Billy Riccaldo | T R E A S U R E R

Billy has been a member of CSEA since 1973. His union activities began after being elected Vice President of the Rockland County Unit in 1998 and then President of Rockland County Local 844 in 2001. He is a former Board of Director and currently serves as Region 3 President. He was the recipient of the CSEA Mission Achievement Award for Local Government Division in 2004. Billy previously served on the Region 3 Political Action Committee, the Statewide Political Action Committee and the Statewide Personnel Committee. He is an ex-Vice President of the Hudson Valley Area Federation and was elected as a Trustee of the Employee Benefit Fund in July 2003, serving one year. Billy was appointed again in April 2005, re-elected in 2012 and 2016 and continues to serve as a Trustee. He was elected as Southern Region President in 2008 and re-elected in 2012 and 2016. Billy also serves on the Fund’s Wage & Benefits Committee.

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ANNUAL REPORT 2017

Shana DavisShana, an employee of the NYS Department of Taxation & Finance, has been a member of CSEA Albany Tax Local 690 since 1989. Shana was appointed as a Shop Steward in her local in April 2004, served as the Local Woman's Committee Chairperson since 2006. In May of 2008 Shana was appointed as a Delegate and then elected as Local Secretary in June of 2013. In 2016 Shana was elected as CSEA Capital Region IV Treasurer; she also serves on the CSEA Statewide Audit Committee and on the CSEA Statewide Joint Committee on Health Benefits. Her other union activities include President of the Capital District Chapter Coalition of Black Trade Unionist and a board member of the Capital District Area Labor Federation. Shana earned her Bachelor's degree in Public Administration from the University of Phoenix in 2012 and then continued to earn a Master's degree in Business Administration in 2015. Shana also volunteers for many other community and charitable organizations as well.

Monica BerkowitzMonica serves as the CSEA Nassau Education Local 865 President. Monica began her involvement in CSEA in 1984 as a Shop Steward for the Nassau BOCES Unit. She was appointed to the position of Executive Vice President for the Unit and in 1995 was elected to the presidency. She has served as President for the past 21 years. In 1993, Nassau BOCES became part of Nassau Educational Local 865. She was appointed as Fourth Vice President of the Nassau Education Local. In 2000, she was elected as First Vice President of the Local. In 2006, she became the first woman president of Nassau Educational Local 865. Monica has been re-elected several times and is currently serving her third term. Monica was appointed by CSEA President Danny Donohue to chair the Ad-Hoc Committee to restructure small units throughout the State. In 2007, she was appointed by President Donohue to chair the Standing Legal Committee. Monica has run a highly successful Career Conference for the membership of Local 865 for the past 21 years. Monica graduated from Saint Helena High School in the Bronx and went on to obtain a four year degree in business at Queens College. She also attended the Industrial Labor Relations School Cornell Extension at Old Westbury and earned a Certificate in Labor Studies. In April 2016 Monica received an award for the Commitment to Human Rights and the Labor Movement from the Labor Council for Latin American Advancement. She was appointed as a Trustee of the Employee Benefit Fund in September 2016 and appointed to the CSEA Board of Directors in September 2017.

Lester I. CrockettLester began his union career at the NYS Insurance Fund in 1981. In 1983, he was appointed to be Shop Steward for the Payroll Audit Department. In 1992, Lester was elected President of Local 351. He served as President of the Local from 1992 to 2011. In October of 2011, Lester assumed the position of President of CSEA Metropolitan Region 2. In 2012, he was re-elected as President. He has also served as an AFSCME delegate since 1992. His union service includes serving as a Trustee for the CSEA Political Action Fund (2008-2016) Executive Board Member of the NYC Central Labor Council, member of the CSEA Board of Directors for 15 years, and member of the following Region 2 committees: Education, Political Action, Health & Safety, Men’s Committee, Next Wave and PEOPLE. Lester was elected as a member of the CSEA Employee Benefit Fund Board of Trustees in September 2016.

Colleen WheatonColleen was elected to serve her first four-year term as president of CSEA Region 5 in February 2008. Prior to that, she served as Region 5 Recording Secretary. She is employed as a Secretary at SUNY Potsdam, where she has worked since 1984. Her involvement in CSEA began in the late 1980's when she was elected to the position of 2nd Vice President of Local 613. The following term, she was elected as President, a position she held until 2008. Colleen has served as Region 5 Program Chair, as well as a member of the Region Political Action, PEOPLE and Education Committees. She has served on the St. Lawrence County Political Action Coalition, as a Federal Political Action Liaison (PAL), and as a delegate to the Jefferson/Lewis/St. Lawrence Counties AFL-CIO Labor Council. She was a member of the CSEA Statewide Board of Directors and former Chair of the Statewide SUNY Labor/Management Committee. She serves as Executive Vice President of the Central New York Area Labor Federation, AFL-CIO. Colleen received CSEA's State Division Mission Achievement Award in 2004. In 2005, she graduated from CSEA's Leadership Education and Development (LEAD) Program and in Summer 2006, graduated from the New York State AFL-CIO Cornell University Labor Institute. In 2011, she graduated from the Harvard Trade Union Program. Colleen was elected as a Trustee of the Employee Benefit Fund in September 2016.

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ANNUAL REPORT 2017

A Message From theChairman and Director

Brothers and Sisters, we are pleased to provide you with the Annual Report of the CSEA Employee Benefit Fund for Fiscal Year 2017.

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During the course of 2017, the EBF initiated several new technology initiatives – each designed to better serve our members and their families who depend on the Fund to administer their dental, vision, and other important benefits. In 2017, the Fund upgraded the software for its dental claims system. We also continued to improve our website, www.cseaebf.com, by providing increased functionality for our members and providers. Data generated from this effort demonstrates that the EBF website in being accessed more than ever before, with increasing numbers of participants using Smartphones to search providers and identify the benefits for which they are entitled. In addition, the EBF Board of Trustees approved important benefit enhancements for our Solstice and Unified Court System dental plan offerings that will be implemented in January 2018. Our Dental and Vision Participating Provider Panels continue to grow. We are continuing to work to add even more quality providers to our panels in rural areas and have continued our efforts to recruit dental providers out of state in areas that are popular with CSEA retirees. The EBF staff is committed to serving the CSEA membership. The EBF is honored to have served the CSEA family for nearly 40 years. Providing the highest quality benefits with top quality member service is a goal that we strive to achieve every day. As always, we welcome and appreciate your suggestions and input. On behalf of the EBF Board of Trustees and the Fund staff, thank you for your support.

In solidarity,

Danny Donohue, Chairman

Fraternally,

Bill Howard, Director

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ANNUAL REPORT 2017

September 28, 2017

The Board of Trustees, CSEA Employee Benefit Fund:

We have audited the accompanying financial statements of the CSEA Employee Benefit Fund (the Fund) which comprise the statements of benefit obligations and net assets available for benefits as of March 31, 2017 and 2016, and the related statements of changes in benefit obligations and net assets available for benefits for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the plan's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the plan's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

A L BA NY • BATAVIA • BUFFALO • EAST AURORA • GEN EVA • N YC • RO CHESTER • RUTLAN D, VT • SY RACUSE • UTICA

6 Wembley CourtAlbany, New York 12205

P. (518) 464-4080F. (518) 464-4087

www.bonadio.com

Independent Auditor's Report

Financial Statements as of March 31, 2017 and 2016.Together with Independent Auditor’s Report.

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ANNUAL REPORT 2017

A L BA NY • BATAVIA • BUFFALO • EAST AURORA • GEN EVA • N YC • RO CHESTER • RU TLAN D, VT • SY RACUSE • UTICA

OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CSEA Employee Benefit Fund as of March 31, 2017 and 2016, and the changes in its benefit obligations and net assets available for benefits for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Other MatterOur audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental schedule of administrative expenses presented in Schedule I is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

6 Wembley CourtAlbany, New York 12205

P. (518) 464-4080F. (518) 464-4087

www.bonadio.com

Independent Auditor's Report Continued...

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ANNUAL REPORT 2017

CSEA Employee Benefit FundSTATEMENTS OF BENEFIT OBLIGATIONS AND NET ASSETS AVAILABLE FOR BENEFITSMarch 31, 2017 and 2016

BENEFIT OBLIGATIONS 2017 2016

Claims Payable and Claims Incurred, but Not Reported:

Dental 9,108,100 8,055,900

Drug 97,200 172,800

Vision 1,761,430 1,713,411

Miscellaneous and administrative 854,400 836,300

11,821,130 10,778,411

NET ASSETS AVAILABLE FOR BENEFITS

Assets – Investments, at Fair Value:

Corporate obligations 126,118,630 99,063,026

Government obligations 11,979,980 22,492,670

Common stocks 6,681,715 5,786,590

144,780,325 127,342,286

Assets – Receivables:

Participating employers' contributions, net 1,758,607 1,620,316

Other receivables 289,205 274,106

Accrued interest and dividends 560,587 462,338

2,608,399 2,356,760

Assets – Other:

Cash and cash equivalents 10,008,877 17,308,914

Prepaid expenses and other assets 606,717 311,501

Prepaid pension benefits 2,208,204 –

Property and equipment, net 506,331 700,392

13,330,129 18,320,807

TOTAL ASSETS 160,718,853 148,019,853

Liabilities:

Accounts payable and accrued liabilities 637,886 620,775

Deferred employer contributions 314,939 445,411

Accrued pension benefits – 2,296,461

Accrued post-retirement benefits 4,899,080 8,165,866

TOTAL LIABILITIES 5,851,905 11,528,513

NET ASSETS AVAILABLE FOR BENEFITS 154,866,948 136,491,340

EXCESS OF NET ASSETS AVAILABLE FOR BENEFITS OVER BENEFIT OBLIGATIONS $143,045,818 $125,712,929

T H E ACCOM PA NYING NOTES ARE AN INTEGRAL PART O F THESE STATEMEN TS.

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ANNUAL REPORT 2017

NET CHANGE IN BENEFIT OBLIGATIONS 2017 2016

Change During the Year Attributed to:

Claims reported and approved for payment (110,317,678) (101,686,409)

Claims paid 109,274,959 100,648,572

(1,042,719) (1,037,837)

NET CHANGE IN NET ASSETS AVAILABLE FOR BENEFITS:

Additions:

Employer contributions 133,398,527 132,119,519

Investment income:Net appreciation in fair value of investments Interest, dividends and realized gain on sale of investments

460,3201,967,970

43,2701,525,538

Total investment income 2,428,290 1,568,808

Less: Investment expenses (95,462) (95,462)

Net investment income 2,332,828 1,473,346

TOTAL ADDITIONS 135,731,355 133,592,865

Deductions:

Payments for claims:Dental claimsVision care claimsDrug claimsMiscellaneous plan

91,353,65013,588,696

2,153,1952,179,418

82,018,09214,243,2532,079,4862,307,741

Total payments for claims 109,274,959 100,648,572

Workplace security insurance premiums 98,053 75,529

Third party administration fees 895,668 897,479

Administrative expenses 11,659,188 11,390,047

TOTAL DEDUCTIONS 121,927,868 113,011,627

Net Change in Net Assets Available for Benefits 13,803,487 20,581,238

Increase in Excess of Net Assets Available for Benefits Over Benefit Obligations 12,760,768 19,543,401

Other Change in Net Assets: Pension and Other Post Retirement Related Changes Other than Net Periodic Pensions Cost

4,572,121 (633,556)

EXCESS OF NET ASSETS AVAILABLE FOR BENEFITS OVER BENEFIT OBLIGATIONS:

Beginning of Year 125,712,929 106,803,084

End of Year $143,045,818 $125,712,929

CSEA Employee Benefit FundSTATEMENTS OF CHANGES IN BENEFIT OBLIGATIONS AND NET ASSETS AVAILABLE FOR BENEFITSFor the Years Ended March 31, 2017 and 2016


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ANNUAL REPORT 2017

CSEA Employee Benefit FundNOTES TO FINANCIAL STATEMENTSMarch 31, 2017 and 2016

1. THE FUND The CSEA Employee Benefit Fund (Fund) was formed on May 4, 1979, under an agreement between the Civil Service Employees Association, Inc., (CSEA, Inc.), and the State of New York (State). The purpose of the Fund is to provide health and welfare benefits to certain public employees in the State of New York and their eligible dependents. The Fund receives employer contributions pursuant to the aforementioned and subsequent agreements between CSEA, Inc. and the State to provide specified benefits to administrative, operational, and institutional service units, and the Division of Military and Naval Affairs. These agreements provide for quarterly contributions from the State for each covered employee, and resulted in revenue of approximately $65 million and $66 million for the years ended March 31, 2017 and 2016, respectively. The Fund has also entered into similar agreements with various other state, county, and political subdivisions. These agreements with state, county, and political subdivisions resulted in revenue of approximately $68 million and $66 million for the years ended March 31, 2017 and 2016, respectively. The following description of the benefits that the Fund presently provides is general information only. Participants should refer to the applicable plan descriptions for more complete information on the benefits provided by the Fund:

» Dental Coverage - The dental benefit coverage plan (plan) is totally self-insured. Dental benefits are extended according to a reimbursement schedule specified in the plan. Dental benefits are subject to a $2,850 limit per employee or dependent, per calendar year, and management review and determination before work begins, if treatments are expected to exceed $500. In January 2016, implants were added as a procedure. The plan covers up to two implants a year and the cost of these are not included in the $2,850 limit stated above.

» Vision Care Coverage - The vision care benefit plan (plan) is totally self-insured and is administered by a third party administrator. The plan allows for covered employees and eligible dependents to receive optical services once every 24-month period. When a member's job involves the use of video display terminals more than 50% of the time, the employee may be eligible for a second pair of glasses. Benefits are obtained either through a participating optometrist or the employee, (if a nonparticipating optometrist is used), may claim directly for reimbursement of vision care expenses. The Fund reimburses these claims based upon the Plan's established schedule of standard rates.

» Medical Prescription Coverage - The medical prescription coverage benefit plan is a self-insured plan with a third-party administrator. Under this arrangement, prescription drugs are available from participating pharmacists at a cost of one dollar for generic and three dollars for brand name.

» Miscellaneous Benefit Plan - This multi-benefit plan is offered to political subdivisions and includes coverage for legal, prescription drug co-pay, health insurance co-pay, maternity, hearing aids, and annual physicals. The State of New York offers a prescription drug co-pay benefit. Members are reimbursed up to a maximum of $150 per family per calendar year after incurred prescription drug copays exceed $300 in that year.

» Workplace Security - The workplace security plan's benefits are paid for from an insurance contract. Under this plan, benefits are paid for injuries or death caused by assault or captivity while performing job-related duties.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The Fund's financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. New Accounting Pronouncement In July 2015, the FASB issued Accounting Standards Update No. 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) – I. Fully Benefit-Responsive Investment Contracts; II. Plan Investment Disclosures; and III. Measurement Date Practical Expedient (ASU 2015-12). Part I eliminates the requirements

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ANNUAL REPORT 2017

to measure the fair value of fully benefit-responsive investment contracts and certain disclosures. Contract value is the only required measure for fully benefit-responsive contracts. Part II eliminates the requirements to disclose the individual investments that represent 5 percent or more of net assets available for benefits and the net appreciation or depreciation in fair value of investments by general type. Part II also requires all investments to be disaggregated only based on general type, eliminating disaggregation by nature, characteristic and risk. Part III is not applicable to the Fund. ASU 2015-12 is effective for fiscal years beginning after December 15, 2015. Management has adopted Part I and Part II, with retrospective application to all periods presented. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimated Claims Payable Fund liabilities for claims incurred but not reported are estimated by the Fund's actuaries in accordance with generally accepted actuarial principles. Management believes these estimates are adequate to cover the ultimate cost of claims incurred through March 31. Such estimates, however, may be more or less than the amount ultimately paid when the majority of claims are settled during the next year. Cash and Cash Equivalents Cash and cash equivalents includes bank demand deposit accounts, money market accounts and all highly liquid debt instruments purchased with a maturity of three months or less. The Fund's cash balances may at times exceed federally insured limits. The Fund has not experienced any losses in these accounts and believes it is not exposed to any significant risk with respect to cash and cash equivalents. Investments The Fund invests in various types of investment securities which are stated at fair value based on quoted market prices. Investment securities are exposed to various risks, such as interest rate, market, and credit risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such change could materially affect the amounts reported in the accompanying financial statements. Receivables Employer contributions receivable represent amounts due from local governmental units for contributions billed but not received. This balance is stated at the amount billed, which is due on the first of each month. Unpaid contributions with invoice dates over 60 days old are considered delinquent. Payments received are allocated to the specific invoices identified or, if unspecified, are applied to the earliest unpaid invoices. The carrying amount of employer contributions receivable is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management individually reviews all contributions receivable balances that exceed 60 days from invoice date and estimates the portion, if any, of the balance that will not be collected. Management has reviewed the balances and believes an allowance of $60,000 for both of the years ended March 31, 2017 and 2016, is adequate. Property and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the related assets, which range from 3 to 10 years. Leasehold improvements are amortized over the shorter of the estimated life of the asset or the remaining lease term. Deferred Revenue Deferred revenue is reported when potential revenue does not meet both the measurable and available criteria for recognition in the current period. In subsequent periods, when both recognition criteria are met, the liability for deferred revenue is removed and revenue is recorded.

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ANNUAL REPORT 2017

Revenue Recognition The Fund's revenues are obtained from various New York State agencies and local governmental units for insurance provided by the Fund. These revenues are recognized based on the period of service insurance is provided. For the years ended March 31, 2017 and 2016, revenue from one member group made up approximately 49% and 50% of total revenue, respectively. Concentrations of Credit Risk Financial instruments that potentially subject the Fund to concentrations of credit risk consist of the employer receivables from New York State. Tax Status The Organization is a not-for-profit corporation and is exempt from income taxes as an organization qualified under Section 501(c)(9) of the Internal Revenue Code. The Organization has also been classified by the Internal Revenue Service as an entity that is not a private foundation. Financial Instruments Measured at Fair Value The Fund uses various valuation techniques in determining fair value and classifies into a three level hierarchy based on the nature of the inputs. Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 valuations are based on inputs, other than quoted prices included within Level 1 that are observable either directly or indirectly. Level 3 valuations are based on inputs that are unobservable and significant to the overall fair value measurement. The asset's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

3. INVESTMENTS The Fund's investments are held at a brokerage firm and managed under a separate contract by an investment management company. The following presents the fair values of investments as of March 31, 2017 and 2016, respectively:

March 31, 2017 Principal Amount Fair Amount

Corporate bonds 126,587,729 126,118,630

Government bonds 11,980,588 11,979,980

Common stocks - Closed end stock funds 3,116,727 6,681,715

TOTAL $141,685,044 $144,780,325

March 31, 2016 Principal Amount Fair Amount

Corporate bonds 99,108,507 99,063,026

Government bonds 22,482,092 22,492,670

Common stocks - Closed end stock funds 3,116,727 5,786,590

TOTAL $124,707,326 $127,342,286

During the years ended March 31, 2017 and 2016, the Fund's investments (including investments bought, sold, and held during the year) appreciated (depreciated) in value as follows:

2017 2016

Corporate bonds (423,618) (5,989)

Government bonds (11,186) (7,847)

Common stocks - Closed end stock funds 895,124 57,106

TOTAL $460,320 $43,270

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ANNUAL REPORT 2017

4. PROPERTY AND EQUIPMENT The following is a summary of property and equipment at cost, less accumulated depreciation and amortization, at March 31:

2017 2016

Furniture and fixtures 706,646 746,302

Leasehold improvements 44,308 66,536

Computer equipment 2,452,990 2,452,990

3,203,944 $43,270

Less: Accumulated depreciation and amortization (2,697,613) (2,565,436)

NET PROPERTY AND EQUIPMENT $506,331 $700,392 Depreciation and amortization expense for 2017 and 2016 was $201,278 and $203,453, respectively.

5. OPERATING LEASE The Fund rents its office facilities from the Fund's sponsor under a non-cancelable operating lease that expires in September 2024. The lease does not contain renewal options. Minimum future rental payment is as follows for the year ending March 31st:

2018 200,743

2019 200,743

2020 200,743

2021 200,743

2022 200,743

2023-2025 501,858

TOTAL $1,505,573 Rental expense was $224,467 and $230,925 for the years ended March 31, 2017 and 2016, including amounts for occupancy costs and real estate taxes.

6. PENSION AND POST-RETIREMENT BENEFIT PLANS The Fund maintains a non-contributory defined benefit pension plan, (Plan) that covers substantially all Fund employees, based upon length of service requirements. The Fund provides health care benefits for its employees, spouses or domestic partners and their dependents upon retirement. The benefits for union employees are based on contractual agreements, providing for an annual contribution of 100% of individual coverage. For those union employees who retire at normal retirement age and with twenty or more years of service, the Fund will provide health coverage to a spouse or domestic partner at no cost during the lifetime of the retiree. Payments for management confidential employees are calculated based on longevity based cost-sharing formula for health insurance coverage.

OBLIGATIONS AND FUNDED STATUS Pension Benefits Postretirement Benefits

Change in Benefit Obligation: 2017 2016 2017 2016

Benefit obligation at beginning of year 20,726,970 19,395,598 19,357,672 18,060,170

Service cost 1,051,749 953,259 668,202 667,254

Interest cost 815,540 733,615 697,619 692,318

Plan participants' contributions – – 7,125 5,657

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ANNUAL REPORT 2017

Change in Benefit Obligation (Continued): 2017 2016 2017 2016

Actuarial (gain) loss (1,125,137) (242,281) (1,469,161) 235,337

Amendments/Curtailments 27,444 – – –

Benefits paid to participants (2,034,036) (113,221) (326,823) (303,064)

BENEFIT OBLIGATION AT END OF YEAR $19,462,530 $20,726,970 $18,934,634 $19,357,672

OBLIGATIONS AND FUNDED STATUS Pension Benefits Postretirement Benefits

Change in Plan Assets: 2017 2016 2017 2016

Fair value at beginning of year 18,430,509 14,968,103 11,191,806 11,078,038

Actual investment returns 1,274,261 (424,373) 843,748 113,768

Employer contributions 4,000,000 4,000,000 2,000,000 –

Benefits paid to participants (2,034,036) (113,221) – –

Fair value at end of year $21,670,734 $18,430,509 $14,035,554 $11,191,806

FUNDED STATUS AT END OF YEAR $2,208,204 $(2,296,461) $(4,899,080) $(8,165,866)

Amounts recognized in the statements of benefit obligations and net assets available for benefits as of March 31 consist of:

Pension Benefits Postretirement Benefits

2017 2016 2017 2016

Asset / (Liability) for benefits 2,208,204 (2,296,461) (4,899,080) (8,165,866)

Net assets available for benefits -

Transition obligation / (Asset) – – – –

Prior service cost – – 1,834,165 2,083,075

(Gains) / Losses $5,220,963 $7,581,799 $3,956,718 $5,919,093

Components of net periodic benefit cost and other amounts recognized in nets assets are as follows:


Net Periodic Benefit Cost: 2017 2016 2017 2016

Service cost benefits earned during the year 1,051,749 953,259 668,202 667,254

Interest cost on projected benefit obligation 815,540 733,615 697,619 692,318

Expected return on Plan assets (914,915) (743,921) (503,631) (498,512)

Amortization of prior service cost / (credit) – – 248,910 192,116

Amortization of net (gain) / loss 366,858 400,189 153,097 320,232

Special termination benefit cost for early retirement incentive program

27,444 – – –

Settlement cost / (credit) 509,495 – – –

NET PERIODIC BENEFIT COST $1,856,171 $1,343,142 $1,264,197 $1,373,408

14

ANNUAL REPORT 2017


Other Changes in Plan Assets and BenefitObligations recognized in Net Assets:

2017 2016 2017 2016

Change in unamortized items: Actuarial (gain) / loss Special termination benefit (cost) Prior Service Cost

(1,484,483)

27,444 –

926,013

– –

(1,809,278)

– –

620,080

– –

Amortization of: Prior service cost / (credit) Actuarial (gain) / loss

–

(366,858)

–

(400,189)

(248,910) (153,097)

(192,116) (320,232)

Special termination benefit (cost) (27,444) – – –

Settlement (cost)/credit (509,495) – – –

Total Changes recognized in net assets (2,360,836) 525,824 (2,211,285) 107,732

TOTAL RECOGNIZED IN NET PERIODIC BENEFIT COST AND NET ASSETS $(504,665) $1,868,966 $(947,088) $1,481,140

Settlement costs in 2017 of $509,495 are based on the lump sum benefits paid from April 1, 2016 to March 31, 2017. The total actuarial loss before the recognition of the distributions was prorated based on the total projected benefit obligations relating to the distributions and was recorded as a settlement cost in the current year. The retirements under the Early Retirement Incentive Program resulted in an increase in liabilities, and the increase due to the enhanced benefit was reflected as a Special Termination Benefit Cost as of March 31, 2017. The expected effect of unamortized items in the unrestricted net assets in the next fiscal year is as follows:


Change in Benefit Obligation: 2018 2018

Prior service cost – 166,730

(Gains) / losses 198,692 126,870

TOTAL $198,692 $293,600

Weighted Average Actuarial Assumptions The weighted average actuarial assumptions used to determine benefit obligations as of March 31, were as follows:



Discount rate 4.15% 3.96% 4.19% 4.04%

Compensation increase 5.00% 5.00% n / a n / a

Long-term rate of return 4.00% 5.00% 4.00% 4.50%

The weighted average actuarial assumptions used to determine net periodic pension cost/(income) for the years ended March 31, were as follows:

15

ANNUAL REPORT 2017



Discount rate 3.96% 3.80% 4.04% 3.80%

Compensation increase 5.00% 5.00% n / a n / a

Long-term rate of return 5.00% 5.00% 4.50% 4.50% For measurement purposes, the 2017 estimates of pre-65 medical trend rates and post-65 medical trend rates for post-retirement costs assumed an inflation rate of 7.50% and 5.80%, respectively. The 2017 estimate of drug trend rates assumed an inflation rate of 10.50% for prescription drug costs. The rates for pre-65 and post-65 medical are assumed to decrease gradually to 3.886%, reaching that rate in fiscal year 2076 and are expected to remain level thereafter. The rates for prescription drug are assumed to decrease gradually to 3.886% reaching that rate in fiscal year 2076 and are expected to remain level thereafter. The Affordable Care Act has a financial impact on employers who sponsor postretirement healthcare benefits and therefore certain provisions were reflected in the valuation. An adjustment has been made to reflect the effect of benefit mandates. The effect of the excise tax starting in 2018 has not been reflected in the valuation as it is not expected to have a significant impact on the liability. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage point change in the health care trend rates would have the following effects:

1 Point Increase 1 Point Decrease

Effect on total of service and interest cost components 495,104 (343,151)

Effect on postretirement benefit obligation 4,995,846 (3,710,733) Determination of Investment Policy The general direction of the investments will be to achieve the optimum return while preserving principal and providing income and appreciation. The portfolio will maintain a balanced allocation of equities and fixed income securities unless directed otherwise by the Fund sponsor. A balanced allocation will be defined as an equity allocation ranging from 30% to 70% of the total portfolio. Investments in companies currently on AFL-CIO “boycott” list shall be avoided. Commercial paper must have a minimum rating from Standard & Poor's or Moody's of A-2 or P-2, respectively. Expected 2016-2017 Contributions For the year ended March 31, 2018, the pension fund is expected to make a $1,000,000 contribution. For the year ending March 31, 2018, the postretirement fund is expected to make a $360,437 contribution. Allocation of Plan Assets The fair values of the Fund's pension and postretirement benefit plan assets and allocation of plan assets at March 31, 2017, by asset category are as follows:

Pension Benefits Level 1 Inputs Level 2 Inputs Level 3 Inputs Total

Money market funds 1,803,828 – – 1,803,828

U.S. government issues – 3,540,770 – 3,540,770

Corporate bonds – 1,720,262 – 1,720,262

Domestic common stocks 8,776,250 – – 8,776,250

Preferred stocks 105,000 – – 105,000

Foreign stocks 1,116,486 – – 1,116,486

16

ANNUAL REPORT 2017

Mutual funds - equity 1,560,900 – – 1,560,900

Mutual funds - fixed income 3,047,238 – – 3,047,238

TOTAL $16,409,702 $5,261,032 – $16,409,702

Postretirement Benefits Level 1 Inputs Level 2 Inputs Level 3 Inputs Total


Corporate bonds 1,515,372 – – 1,515,372

Common stocks - Closed end stock funds 5,604,002 – – 5,604,002

TOTAL $14,035,554 – – $14,035,554

The estimated fair values of Level 1 investments are determined using quoted market prices that are readily available. The fair value for Level 2 investments are determined using quoted market prices for similar assets in active markets. The fair values of the Fund's pension and postretirement benefit plan assets and allocation of plan assets at March 31, 2016, by asset category are as follows:

Pension Benefits Level 1 Inputs Level 2 Inputs Level 3 Inputs Total


U.S. government issues – 3,119,273 – 3,119,273

Corporate bonds – 359,214 – 359,214

Domestic common stocks 5,197,047 – – 5,197,047

Foreign stocks 716,816 – – 716,816

Mutual funds - equity 1,638,533 – – 1,638,533

Mutual funds - fixed income 3,007,433 – – 3,007,433

TOTAL $14,952,022 $3,478,487 – $18,430,509

Postretirement Benefits Level 1 Inputs Level 2 Inputs Level 3 Inputs Total



TOTAL $11,191,806 – – $11,191,806

Estimated Future Benefit Payments

The following are the estimated future benefits expected to be paid, which reflect future service, as appropriate:

Pension Benefits PostretirementBenefits

2018 195,726 360,437

2019 227,028 341,906

2020 314,986 396,763

2021 337,302 382,294

2022 362,387 379,145

2023-2027 3,265,281 2,554,884

TOTAL $4,702,710 $4,415,429

17

ANNUAL REPORT 2017

The Fund also offers a qualified, defined contribution 401(k) retirement plan for employees with more than three months of service.

7. FAIR VALUE MEASUREMENTS The following are measured at fair value on a recurring basis at March 31, 2017:

Description Level 1 Inputs Level 2 Inputs Level 3 Inputs Total


Government obligations – 11,979,980 – 11,979,980

Corporate bonds – 126,118,630 – 126,118,630


TOTAL $14,127,603 $138,098,610 – $152,226,213

All assets have been valued using a market approach. Level 1 assets are calculated using quoted market prices in active markets. Level 2 assets are calculated using quoted market prices for similar assets in markets that are not active. The following are measured at fair value on a recurring basis at March 31, 2016:

Description Level 1 Inputs Level 2 Inputs Level 3 Inputs Total


Government obligations – 22,492,670 – 22,492,670

Corporate bonds – 99,063,026 – 99,063,026


TOTAL $19,503,106 $121,555,696 – $141,058,802

8. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of financial instruments is as follows:

March 31, 2017 March 31, 2016

Assets:Carrying Amount Fair Value

Carrying Amount Fair Value

Investments 144,780,325 144,780,000 127,342,286 127,342,000

Employer contributions and other receivables 2,047,812 2,048,000 1,894,422 1,894,000

Accrued interest and dividends 560,587 561,000 462,338 462,000

Cash and cash equivalents 10,008,877 10,009,000 17,308,914 17,309,000

Liabilities:

Claims payable 11,821,130 11,821,000 10,778,411 10,778,000

Accounts payable and accrued liabilities 637,886 638,000 620,775 621,000

Deferred employer contributions 314,939 315,000 445,411 445,000 Investments - The Fund invests in various investment securities. Investment securities are exposed to various risks such as interest rate risk, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in investment securities will occur in the near term and such changes could materially affect the amounts

18

ANNUAL REPORT 2017

reported in the statement of benefit obligations and net assets available for benefits. These changes could also impact the benefit obligations reported in the defined benefit pension plan and the post-retirement benefit plan. Employer contributions receivable - Fair value of employer contributions is estimated using discounted cash flows. Other receivables - Fair value of other receivables is estimated using discounted cash flows. Accrued interest and dividends - Fair value of accrued interest and dividends is estimated using discounted cash flows. Cash and cash equivalents - Fair value of cash and cash equivalents equals the face amount. Claims payable - Fair value approximates carrying value due to the nature of the instrument. Claims incurred but not reported - Fair value approximates carrying value due to the nature of the instrument. Accounts payable and accrued liabilities - Fair value approximates carrying value due to the nature of the instrument. Deferred employer contributions - Fair value approximates carrying value due to the nature of the instrument.

9. RISKS AND UNCERTAINTIES Collective Bargaining Agreement - Approximately 72% of the Fund's employees are covered by a collective bargaining agreement. The labor contract with the Office & Professional Employees International Union - Local 153 - AFL-CIO covers a 4 year period ending June 30, 2020.

10. SUBSEQUENT EVENTS Subsequent events have been evaluated through September 28, 2017, which is the date the financial statements were available to be issued.

19

ANNUAL REPORT 2017

CSEA Employee Benefit Fund Schedule ISCHEDULE OF ADMINISTRATIVE EXPENSESFor the Years Ended March 31, 2017 and 2016

2017 2016

Salaries and fringe benefits 7,817,724 7,071,848

Post-retirement benefits 944,499 1,076,002

Services 535,574 538,719

Shipping and postage 437,880 497,829

Printing expense 235,807 247,754

Administrative expenses 226,613 227,809

Office rent 224,467 230,925

Legal and audit fees 202,786 197,674

Depreciation and amortization 201,278 203,453

Consultants 151,354 139,996

Insurance expense 134,870 136,080

Bank charges 110,163 99,148

Office supplies 75,553 79,119

Data processing 75,000 265,742

Trustee time and expense 72,008 142,040

Promotional items 68,290 84,505

Telephone 67,714 75,450

Equipment rental 67,245 69,889

Miscellaneous expenses 10,363 6,065

TOTAL $11,659,188 $11,390,047


20

ANNUAL REPORT 2017

04—Dental Vision Other

* Sunrise r Silver f Emerald Drug r Physician Co-Pay

n Horizon s Gold o Hearing l Legal, Hearing, Maternity, Rx Co-Pay

♣ Equinox z Platinum £ Legal Plan " Physician, Rx Co-Pay, Maternity

♠ Dutchess t Rx Co-Pay ¥ Legal, Maternity, Hearing

p Solstice q Solstice

∫ State ∞ State0 Unified Court System * Unified Court System

Participating Bargaining Units

21

ANNUAL REPORT 2017

Albany Co. Social Services * s VDT / o

Albany Co. DPW * s VDT / o

Albany County DGS * s VDT / o

Albany Co Health Dept * s VDT / o

Albany Co. Sheriffs * s VDT / o

Albany County Mental Health s o

Albany Housing Authority z

Albany Public Library p q

Albion CSD p

Alden CSD * r

Altmar Parish Williamsville s VDT

Amsterdam Waste Water * z

Amityville Library < z

Amityville SD *

APW Central School s VDT

Ardsley CSD ♠ z

Arlington CSD ♣

Atlantic Beach Water r

Ausable Valley CSD p q

Avoca S.D. p z

Baldwin Library p q

Baldwin SD Cafeteria p q

Baldwin SD Custodial z

Baldwin S.D. (Monitor/Health) * q

Baldwin Special Education Unit p q

Baldwin UFSD (Clerical) z

Ballston Spa CSD *

Bath Municipal Utilities Commission ♣ z

Bath Haverling CSD Custodial ♠ z

Bath Haverling CSD Transportation ♠ z

Bath Haverling CSD Part-Timers ♠ z

Bedford CSD ♣

Bellmore SD p q

Berne-Knox Westerlo * o

Bethlehem Public Library Full Time p q

Bethlehem Public Library Part Time p q

Binghamton City SD p q

Bolivar-Richburg CSD p z

Brentwood Library ♠ z

Brentwood UFSD z f

Bridgehampton SD ♣ s VDT

Bronxville Public Library ♠ z

Buffalo Sewer Authority q

Byram Hills SD < s VDT

Cairo Durham CSD p q

Catskill CSD s VDT

Cayuga/Onondaga BOCES p

Central Islip Public Lib. < z

Chappaqua Public Schools ♠ z

Chateaugay CSD p q

Chazy CSD p q

Cheektowaga SD *

Chemung County Library z

Chemung County z

Chemung County Sewer District z

Chester UFSD < z VDT

City of Auburn Profess. < z

City of Auburn < z

City of Cohoes Clerical ♠ z o

City of Cohoes DPW ♠ z o

City of Corning z

City of Corning DPW z

City of Cortland p q

City of Elmira z

City of Glen Cove Housing ♣ r

City of Glen Cove ♠ z

City of Gloversville z

City of Hudson ♣ s VDT

City of Johnstown * r

City of Long Beach ♠ z VDT / l

City of Mechanicville * s VDT

City of Middletown ♠ z

City of Mt. Vernon z

City of No Tonawanda * o

City of Newburgh * z

City of New Rochelle <

City of Oneida q

City of Oneonta < z

City of Ogdensburg < z VDT

City of Port Jervis < s VDT

City of Poughkeepsie s VDT

City of Rye Clerical s VDT / o

City of Rye DPW s VDT / o

City of Schenectady s VDT

City of Saratoga Springs z

City of Saratoga Springs DPW r

Groupname Dental Vision Misc Groupname Dental Vision Misc

22

ANNUAL REPORT 2017

City of Watervliet s VDT

City of White Plains z VDT

Clarkstown SD Nurses < z

Clarkstown SD Cafeteria < z

Clarkstown SD Buildings and Grounds < z

Clarkstown Secretary/Aides/Monitors z

Cleveland Hills SD * r

Clinton County p q

Clinton County Community College p q

Clinton County Sheriff's p q

Clinton Essex Franklin Lib r

Cohoes City SD * r

Copiague Memorial Library ♣ z

Copiague Memorial Library Part-Timers p q

Copiague SD p q

Copiague SD Clerical ♠

Copiague SD Clerical Part-Timer p q

Copiague SD Supervisors ♠

Copiague SD TA p q

Corning Community College p q

Corning Painted Post z

Cornwall SD Maintenance * z

Cornwall SD Cafeteria * z

Cortland Housing Authority p q

Croton Harmon SD Custodial ♠ z

Croton Harmon SD Clerical ♠ s VDT

Deer Park UFSD * r

Deruyter CSD p q

Dover UFSD <

Dutchess County z

Eastchester UFSD * r

East Greenbush CSD *

East Meadow SD Custodial <

East Moriches UFSD ♣ z

Eastern Suffolk BOCES r

Eastport So. Manor *

Eastport So. Manor Clerical *

Edgemont UFSD ♠ z

Edgemont UFSD Custodial ♠ z

Eden CSD p

Elmira Water Board z

Elmsford SD ♠ z

Erie County Water Auth ♠ s VDT

Farmingdale Public Library ♠ z

Farmingdale UFSD ♠ s VDT

Farmingdale SD Monitors r

Fillmore CSD z

Franklin Essex Hamilton BOCES p q

Franklin Square Library < s VDT

Franklin Square SD- TA's p q

Floral Park UFSD < r

Freeport HA ♠ z VDT

Freeport SD Cafeteria & Secretary * z

Freeport UFSD * z

Friendship CSD z

Fulton City SD (Custodial) s VDT

Fulton City SD p q

Fulton County *

Galway SD ♠ r

Gananda CSD p q

Garden City UFSD <

Genesee Valley SD p z

Geneseo CSD z

Geneva CSD p q

Glens Falls City SD < r

Goshen CSD < s VDT

Goshen CSD Retirees < s VDT

Greater Amsterdam SD Custodial/Maintenance p q

Greater Amsterdam SD Clerical p q

Greater Amsterdam SD Aides p q

Greater Johnstown SD ♠

Greenport SD *

Groton CSD q

Guernsey Memorial Library <

Guilderland Pub Library s VDT

Haldane CSD ♠ z

Hampton Bays SD q

Hannibal CSD p q

Harrison SD Aides < z

Hastings on Hudson SD Clerical z

Hastings on Hudson SD Custodial z

Hendrick Hudson SD < r

Herkimer CSD FT Non- Teaching Unit s VDT

Herkimer County p q

Herkimer County BOCES p q

Hermon-DeKalb CSD s VDT


23

ANNUAL REPORT 2017

Heuvelton SD s VDT

Hewlett Woodmere Public Library ♠ z

Hicksville Pub Library <

Hicksville SD q

Horseheads SD (Custodial & Clerical) z

Horseheads CSD Secretaries z

Horseheads SD Transportation z VDT

Hudson City SD Clerical s

Hudson City SD Aides r

Hudson City SD Custodial s

Hudson-Black River Region ♠ z VDT

Huntington Pub Library ♠ z

Hyde Park CSD <

Hyde Park CSD p q

Ichabod Crane SD *

Irvington SD Custodial ♠

Irvington SD Clerical DWF p/♠ q

Island Tree Public Library p q

Island Tree Custodial <

Island Tree SD <

Johnsburg CSD p

Kingston CSD r

Lackawanna CSD Education *

Lackawanna HA * z

Lackawanna HA White * z

Lakeland SD p q

Laurens CSD p q

Levittown FT/New Hire * r

Levittown PT/New Hire r

Levittown PT to FT * z

Levittown PT z

Levittown Regulars ♣ z o

Lewis County Sheriff's s VDT

Lewis County *

Lewis County General Hospital q

Lindenhurst Library < z

Lindenhurst SD Custodial * s VDT

Lindenhurst SD * s VDT

Livingston County p

Liverpool Public Library q

Locust Valley SD ♠

Locust Valley SD Transportation ♣

Long Lake SD * z VDT

Longwood CSD * r

Longwood Public Library < z

Lynbrook UFSD *

Madison County Blue Collar s VDT

Madison County White Collar s VDT

Madison County White Collar Retirees q

Malverne UFSD < s VDT

Malone SD z

Mamaroneck UFSD ♣ s VDT

Mamaroneck UFSD Retirees ♣

Manchester-Shortsville CSD p q

Manhasset Lakeville Water < r

Massapequa Water District ♠ z

Massapequa SD Custodial ♣

Massena Memorial Hospital z

Mastic-Moriches-Shirley Public Library p q

McGraw CSD q

Merrick UFSD ♣

Middle Country SD *

Middle Country SD Transportation *

Middle Country SD Heads *

Middle Country SD Maintenance *

Middletown SD < s VDT

Millbrook CSD *

Minerva CSD ♠ z VDT

Minerva CSD Retirees ♠ z

Monroe-Woodbury CSD * r

Morristown CSD < r

Mt. Pleasant CSD ♠ z

Mt. Pleasant CSD Custodial ♠ z

Mt. Pleasant Public Library < r

Nanuet SD ♠ s VDT

Nassau Co. BOCES ♠

Nassau Co. BOCES Part-Timers p q

Nassau Co. Bridge Auth. z

Nassau Library System < z

New Hyde Park Garden City Custodial < z

New Hyde Park Garden City Nurses < z

New Hyde Park Garden City Clerical < z

New Rochelle HA ♣ z

New Rochelle Public Library z VDT £tr

New Rochelle SD p q

Newburgh CSD * z


24

ANNUAL REPORT 2017

North Babylon z

North Castle Public Library ♠ s VDT

North Collins CSD p

North Colonie SD *

North Colonie SD Aides p q

North Country Community College p

North Salem CSD ♠ z VDT

North Tonawanda SD Custodial z VDT

North Tonawanda SD Clerical z VDT

Northeastern Clinton CSD p q

Northern Adirondack CSD p q

Norwood-Norfolk CSD p q

Oceanside SD Cafeteria Lunch Employees q

Oceanside SD Clerical £

Oceanside Sanitary District #7 ♠

Ogdensburg Bridge & Port Authority * z VDT

Ogdensburg CSD s VDT

Ogdensburg HA ♠ z

Oneonta City Schools < z

Orleans Niagara BOCES Educational p q

Orleans Niagara BOCES Custodial p q

Ossining Library ♠ z £ / o

Ossining UFSD s VDT

Oswego County CO-OP * s VDT

Oswego County BLUE < z VDT

Otsego County p q

Oyster Bay East Norwich ♠ z VDT

Oyster Bay East Norwich Custodial ♠

Oyster Bay HA ♠ z

Patchogue Medford UFSD ♣ s VDT

Patchogue Medford Library z

Pawling CSD *

Pearl River Public Library ♣ z VDT

Pearl River UFSD t

Peekskill HA < z

Pelham SD Clerical & Teaching ♣ z

Pelham SD Custodial <

Peninsula Public Library r

Penn Yan SD < z

Peru CSD p r

Peru CSD p q

Plainedge SD Custodial ♠

Plattsburgh CSD r

Pocantico Hills CSD s VDT

Poland CSD q

Port Chester HA ♠ z

Port Washington SD ♠ z VDT

Port Jervis City Schools ♣ z

Poughkeepsie Public Library p q

Poughkeepsie SD Clerical ♠ z

Pulaski Academy & CSD q

Putnam County ♠ s VDT

Ravena-Coeymans-Selkirk < s VDT

Remsen SD s VDT / £

Riverhed SD ♣ £

Riverhead SD Aides ♣

Rockland County ♣ z

Rockville UFSD * r

Romulus CSD r

Rondout Valley CSD Custodial z

Rondout Valley CSD Cafeteria z

Roosevelt Public Library ♠ z

Roscoe SD <

Salmon River CSD p q

Sanitary District No. 1 z

Saranac SD p r

Saranac Lake CSD q

Saratoga Springs SD *

Saugerties CSD z

Sayville Library ♠ s VDT

Scarsdale UFSD p q

Schenectady County *

Schenectady County CC *

Schenectady County Communications Unit ♠

Schenevus p q

Schodack CSD *

Schoharie County z

Schuylerville CSD *

Scio SD p z

Shenendehowa SD P/T <

Shenendehowa SD <

Sherburne Earlville CSD q

Smithtown Library ♠ z VDT / l

So. Farmingdale Water District ♠ s VDT

Southern Cayuga CSD p q

South Glens Falls SD *


25

ANNUAL REPORT 2017

South Jefferson SD z

South Orangetown SD r

Southold SD ♣

St. Lawrence County < z

Starpoint CSD Buildings & Grounds < z

Starpoint SD Clerical/Aides <

Steuben Co. Corrections Officers < z

Steuben County * z

Stillwater CSD p q

Suffolk County BOCES II r

Suffolk Coop. Library *

Syracuse HA ♠ z VDT

Syracuse HA Retirees ♠ z

Tarrytown UFSD Unit 1 *

Tarrytown UFSD Unit 2 *

Tioga County p q

Tompkins County Blue * z

Tompkins Cortland CC ♠ z

Tompkins County White ♠ z

Town of Albion s

Town of Altamont (Tupper Lake) z

Town of Babylon ♠ z VDT / l

Town of Babylon Retirees ♠ z

Town of Barre * r

Town of Beekmantown Highway p z

Town of Bellmont < s VDT / £

Town of Big Flats z VDT

Town of Bolton ♣ r

Town of Brighton ♠ r

Town of Brookhaven Retirees ♠ z

Town of Brookhaven ♠ z VDT / l

Town of Brunswick z

Town of Callicoon ♣ z

Town of Carmel ♠ z

Town of Caroline ♠ z

Town of Catskill * z

Town of Clarence Blue < s VDT

Town of Clarence White < z

Town of Clarkstown < z VDT /t

Town of Clarkstown Special < z VDT

Town of Clarkstown PT z VDT

Town of Chester s VDT

Town of Clifton Park DPW z VDT

Town of Clifton Park Town Hall z VDT

Town of Clinton < s VDT

Town of Cochecton * q

Town of Coeymans * q

Town of Colonie < s VDT

Town of Colonie Unit D < s VDT

Town of Corning ♠ z

Town of Cornwall < s VDT

Town of Crawford <

Town of Dannemora < s VDT

Town of Delaware ♣ z

Town of Dryden ♠ z

Town of East Fishkill ♠ z

Town of East Greenbush < r

Town of East Hampton ♠ r

Town of Eastchester r

Town of Ellenburg Highway p r

Town of Erwin z

Town Glenville ♠ s VDT

Town of Goshen Hwy. < z

Town of Greenburgh r

Town of Greenport ♠ z

Town of Greenwood * s

Town of Hamburg Blue r

Town of Hancock * s VDT

Town of Hamburg White r

Town of Harrison z VDT / ¥

Town of Horicon * s VDT

Town of Huntington ♠ z VDT / l

Town of Huntington Retirees ♠ z

Town of Hyde Park < z

Town of Hyde Park Highway < z

Town of Ithaca ♠

Town of LaGrange ♠ z

Town of LaGrange Retirees ♠ z

Town of Lancaster Blue < z

Town of Lancaster White z

Town of Lansing ♠ z

Town of Lloyd p z

Town of Malone Highway * z

Town of Mamaroneck z VDT

Town of Middletown ♣

Town of Moreau s


26

ANNUAL REPORT 2017

Town of Mt. Pleasant Blue ♣ s VDT

Town of Mt. Pleasant White < s VDT

Town of N. Hempstead z

Town of New Castle < s VDT

Town of New Windsor ♣ z VDT

Town of New Windsor Retirees ♣ z VDT

Town of Newburgh * r

Town of Newfield < z VDT

Town of Niagara r

Town of Niskayuna z

Town of North Castle ♠ s VDT

Town of North Castle Highway ♠ s VDT

Town of North Greenbush * r

Town of Orangetown ♣ z VDT

Town of Orchard Park Blue <

Town of Orchard Park White <

Town of Ossining z

Town of Owasco < s VDT

Town of Oyster Bay z

Town of Patterson * s VDT

Town of Phillipstown <

Town of Poughkeepsie z VDT

Town of Putnam Valley ♠ z

Town of Ramapo Retirees ♠ z t/ r

Town of Ramapo ♠ z t/ r/ VDT

Town of Richmondville * s VDT

Town of Rotterdam z

Town of Saranac Highway p q

Town of Shelby z

Town of Smithtown ♠ z VDT / l

Town of Smithtown FD ♠

Town of Southampton * r

Town of Southeast ♠ z VDT

Town of Southold ♠ z VDT / l

Town of Southold Retirees ♠ z VDT / l

Town of Stillwater ♠ s VDT

Town of Stony Point z VDT

Town of Ticonderoga ♠

Town of Tusten * q

Town of Union ♠ z

Town of Wallkill ♠ z

Town of Wallkill Sup ♠ z

Town of Wallkill Unit 2 ♠ z

Town of Wappingers Highway ♠ z

Town of Warwick ♠ z

Town of Webb p s

Town of Yorktown z

Troy HA z VDT

Tuckahoe Commons SD ♣

Union Springs CSD p q

Valley CSD < r

Village of Amityville < z

Village of Amityville Clerical < z VDT

Village of Arcade *

Village of Attica p q

Village of Babylon ♠

Village of Blasdell ♠ z o

Village of Briarcliff Manor z

Village of Canajoharie * r

Village Of Cayuga Heights ♠ z

Village of Cornwall * r

Village of Corinth * s VDT

Village of Dansville < z

Village of Depew Blue ♣ z

Village of Depew White z VDT

Village of East Aurora ♠ z VDT

Village of East Hills p q

Village of East Rockaway < r

Village of Elmsford * r

Village of Farmingdale < z

Village of Floral Park < r

Village of Floral Park Supervisors ♠ z

Village of Freeport ♠ z VDT

Village of Freeport PT p q

Village of Freeport Housing Authority ♠ z

Village of Goshen z VDT

Village of Granville * z

Village of Greenport ♣ r

Village of Great Neck Estates < z

Village of Great Neck Plaza < z

Village of Hamburg Guards z

Village of Hamburg DPW ♠ z VDT / o

Village of Haverstraw ♠ s VDT

Village of Hempstead ♣ z VDT

Village of Hempstead HA ♣ z

Village of Horseheads z


27

ANNUAL REPORT 2017

Village of Hudson Falls s VDT

Village of Irvington s VDT

Village of Lake Grove <

Village of Lake Success

< s VDT

Village of Lancaster ♠ z VDT

Village of Larchmont ♣

Village of Liberty p r

Village of Lindenhurst * q

Village of Lloyd Harbor ♠ z VDT / l

Village of Lloyd Harbor Retirees ♠ z

Village of Lynbrook ♠ z

Village of Malone Clerical ♣ z

Village of Malone DPW z

Village of Malverne DPW < r

Village of Mamaroneck z

Village of Manorhaven * s VDT

Village of Massapequa Park ♣ z VDT

Village of Massena < z

Village of Medina <

Village of New Hyde Park ♠ z

Village of Ocean Beach ♣ z VDT

Village of Old Brookville ♠

Village of Owego z

Village of Pelham ♠ s VDT

Village of Pelham Manor < s VDT

Village of Perry General ♣ z

Village of Perry Police ♠ z

Village of Pleasantville ♠ z

Village of Port Chester r

Village of Port Jefferson ♣ z

Village of Quogue ♠ s VDT

Village of Russell Garden < z

Village of Rouses Point p s VDT

Village of S. Glen Falls z VDT / f

Village of Sag Harbor z

Village of Sea Cliff < z

Village of Sloan < z VDT

Village of Southampton ♠ z VDT / l

Village of Spring Valley ♠ z

Village of Spring Valley ♠ s VDT

Village of Tarrytown z VDT

Village of Walden ♣ z

Village of Wappingers Falls ♠ z £ / o

Village of Wappingers Falls Clerical ♠ z £ / o

Village of Warsaw Police * s

Village of Westbury ♠

Village Of Woodridge * q

Vocational Ed & Ext Board Nassau ♠

Town of West Seneca Blue * z

Town of West Seneca White * z

Wallkill CSD < z

Wantagh UFSD * q

Warrensburg SD *

Warwick Valley CSD < s VDT

Watervliet Housing * s VDT

Wayland SD z o

Wead Library z

Webutuck SD ♣

Weedsport CSD q

Wellsville CSD z

West Babylon SD *

West Canada Valley CSD s

West Canada Valley CSD Retirees s

West Long Beach r

White Plains CSD < r

White Plains HA z VDT

Willsboro CSD p q

Wilson SD *

Wyoming County Employee Unit q

Yonkers Parking Authority ♠ z

Yonkers SD < r t

Yorktown CSD * z


28

ANNUAL REPORT 2017

04—

State ASU, ISU, OSU ∫ ∞ t

Div. of Military Naval Affairs ∫ ∞ t

NYS Bridge Authority ♠ z

NYS Canal Corp ∫ ∞

NYS Liquidation Bureau ∫ ∞ t

Unified Court System 0 * £ / o / "

Unified Court System Retirees 0 * £ / o / "

Unified Court System P/T *

ORDA ∫ z

Roswell Park Cancer ∫ ∞ t

State University Construction ♣ s VDT

NYS Thruway Authority <

Waterfront Commission of NY Harbor < z

Groupname Dental Vision Misc

Participating Bargaining UnitsContinued... (Statewide)

Dental Vision Other

* Sunrise r Silver f Emerald Drug r Physician Co-Pay

n Horizon s Gold o Hearing l Legal, Hearing, Maternity, Rx Co-Pay

♣ Equinox z Platinum £ Legal Plan " Physician, Rx Co-Pay, Maternity

♠ Dutchess t Rx Co-Pay ¥ Legal, Maternity, Hearing

p Solstice q Solstice

∫ State ∞ State0 Unified Court System * Unified Court System

29

ANNUAL REPORT 2017

81.2

86.1

87.786.3

83 83.5

85.286.3

82

91.3

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

16.4 16.4 16.315.6 15.1

14 14.2 14.2 14.213.6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Employee Benefit Fund Plans05—

DENTAL CLAIMSI N C L U D E A L L D E N TA L P L A N S

1.51.6

1.71.9

2.22.1

1.9 1.92.1

2.2

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1.61.8

2.3 2.3

2.6 2.7

2.4

2.12.3

2.2

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

110.9119.1 123.6

129 131.1 126.7 125.6 129 132 133.4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

100.7

105.9

108

106.1

102.9102.3

103.6104.5

100

109.3

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

VISION CLAIMSI N C L U D E A L L V I S I O N P L A N S

PRESCRIPTION CLAIMSI N C L U D E A L L P R E S C R I P T I O N P L A N S

MISCELLANEOUS CLAIMSI N C L U D E A L L M I S C E L L A N E O U S P L A N S

CONTRIBUTIONS CLAIMS EXPENSE

30

ANNUAL REPORT 2017

31

ANNUAL REPORT 2017

Administrative StaffBill Howard, Director

Lisa A. Brennan, Director of Finance

Jane Balander, Director of Human Resources

Lea J. Guisti, Sr. Dental Supervisor

Carol Jo Russell, Accounting Supervisor

William Ryan, Member Services Supervisor

Consultants & Third Party AdministratorsPrescription Plan Administrators: Envolve

Dental Consultants and Workplace Security Plan: Pearl Carrol & Associates

Consulting Actuary: Charles C. DeWeese, FSA, MAAA

Certified Public Accountants: Bonadio & Co., LLP

Investment Manager: Sterling Asset Management, Inc.

Counsel: Whiteman Osterman & Hanna LLP

06—

32

ANNUAL REPORT 2017

ONE L EAR JET LANE

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L AT HAM, NY 12110-2395

W W W.CSEAEBF.COM

Documents

2017 ANNUAL REPORT - CSEA Employee Benefit Fund · Brothers and Sisters, we are pleased to provide you with the Annual Report of the CSEA Employee Benefit Fund for Fiscal Year 2017