1199SEIU Greater New York Benefit and Pension Funds

1199SEIU Greater New York Education, Job Security and Worker Participation Funds

1199SEIU/Greater New York Child Care Fund

The work

that we do to care

for more than

40,000 lives

2012 Annual Report1199SEIU Funds330 West 42nd StreetNew York, NY 10036-6977

First ClassU.S. Postage

PAIDNew York, NY

Permit No. 3700

For information on all of our Funds,visit www.1199SEIUFunds.org

2012 Annual Report

Table of Contents

Letter from the Executive Directors ... 3

1199SEIU Greater New York Benefit Fund ... 4-7

Highlights ... 4

Our Members: Dawn Ming, Shore View Nursing Home ... 7

1199SEIU Greater New York Pension Fund ... 8

Highlights ... 8

Improving Service for Our Members: Our Funds’ Eligibility Department ... 9

1199SEIU Greater New York Education Fund ... 10-11

Highlights ... 10

Our Members: Winsome Hinds-Wilson, Fulton Commons Care Center ... 11

1199SEIU/Greater New York Child Care Fund ... 12-13

Highlights ... 12

Weathering the Storm: 1199SEIU Greater New York Funds Step Up to Support Members Affected by Sandy ... 14

Our Funds’ 2012 Trustees ... 15

2

Letter from the Executive Directors

Working people and families across our nation face uncertainty every day. Workers worry about whether they will be able to afford or maintain their health coverage, retire with financial security, keep their jobs or pay for safe, nurturing child care for their children while they are at work. At our 1199SEIU Greater New York Funds, we work hard every day to help ensure our members can care for their residents without these worries.

This report highlights our 1199SEIU Greater New York Benefit and Pension, Training and Employment and Child Care Funds’ 2012 achievements. Included are the details about the work that we do throughout the year to care for more than 40,000 lives – those of our nursing home workers, retirees and their families – and to make a difference in our industry. We have also included firsthand accounts from just a few of the members who have taken advantage of the benefits our Funds offer. Of course, all of the accomplishments we highlight in the following pages are only a part of what we do to provide 1199SEIU members with comprehensive health coverage, new skills and opportunities on the job, affordable, dependable child care and security in retirement. We hope you enjoy reading about this important work and some of the unique, innovative programs and services we offer to support our members and meeting some of the members whose lives it has changed.

Sincerely,

Mitra BehrooziBenefit and Pension Funds

Deborah KingTraining and Employment Funds

Vivian FoxChild Care Funds

1199SEIU Funds 3

4

1199SEIU Greater New York Benefit Fund

HighlightsOur 1199SEIU Greater New York Benefit Fund (GNYBF) covers 45,000 healthcare workers, retirees and family members with comprehensive health and quality of life benefits. The GNYBF offers a range of quality health benefits including medical, hospital, prescription, mental health, dental and vision benefits, totaling more than $150 million each year. In addition, our members receive ancillary benefits like wellness and social assistance programs. We make it a priority to manage our plan with an eye toward value, focusing on maximizing every dollar for our members’ benefit. As a result, our GNYBF provides more coverage for less money than a commercial health plan.

OUR COvEREd LIvES

Members: dependents: Retirees: Total Lives:

SChEdULE OF BENEFItS

In 2012, we spent $156.4 million on our members’ comprehensive coverage.

Hospital $65.6 Million

Medical $45.8 Million

Prescriptions $18 Million

Laboratory and X-ray $10.1 Million

Dental $4.4 Million

Surgical $7.8 Million

Anesthesia $3.7 Million

Life Insurance premiums $429,606

Amalgamated AD&D insurance $67,573

Vision care $174,914

Other* $387,524

2012 Total: $156.4 Million

*”Other” includes EITC, citizenship and wellness programs; and retiree activities. Totals do not include claims incurred but not yet paid.

Note: For detailed information, please request Milliman’s Actuarial Report from the Fund.

21,52720,5692,721

44,817

1199SEIU Funds 5

2012 CosT To Cover A FAMILy oF Four

GNYBF: $14,238 National: $20,728 NYC: $24,545

BENdING thE COSt CURvE

The GNYBF has traditionally kept our cost trends below national averages. In the past two years, these trends have been even lower due to the effect of the 2010 Arbitration Award, which for the first time required modest co-pays for members and a weekly premium for spousal coverage. As a result, since 2001, the GNYBF’s costs have risen only 66.4%, while nationally, healthcare costs have risen by 146.5%.

MAxIMIzING OUR hEALthCARE dOLLARS

The Fund’s actuaries predict that the current contract’s programs and new members’ cost share will save the GNYBF $25.38 million by September 2014, exceeding by $4.88 million the $20.5 million goal mandated by the 2010 Arbitration Award. In light of these savings, the Industry Arbitrator issued a new Award, which delayed the scheduled employer contribution increase and lowered member co-pays.

From 2004 to the end of the current contract in 2014, the GNYBF’s cost-containment programs will save $141 million – lowering benefit costs by 13.6%.

2012 Cost Containment Programs

Note: Cost savings, trends and Family of Four healthcare costs refer to members employed in New York who are covered by the GNYBF’s self-administered plan. The remaining statistics include an additional 2,922 members employed in New Jersey and their dependents, who receive a separate benefit package administered through Aetna.

2011-2012 COSt tRENd

National(per life):

6.9%

GNyBF (per life):

-3.0%

Nat’l healthcare Costs: +146.5%

since 2001

GNYBF Costs: +66.4%

since 2001

Lab/Radiology: $0.18 MillionPharmacy:

$1.79 Million

Wraparound Network:

$1.56 MillionOther Programs:

$0.04 Million

Utilization Management: $0.66 Million

Total 2012 Savings: $4.23 Million

0

30

60

90

120

150

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GNyBF Trends Below National Average

6

WELLNESS PROGRAMS

We understand that supporting a healthy, productive workforce means more than just providing affordable, accessible health coverage.

Our Wellness Department helps members improve both their physical and mental well-being. In 2012, our worksite clinics; health fairs; health awareness days; and wellness, nutrition, stress management, crisis intervention and prenatal workshops served 1,900 members. Our personalized Health Coaching service connected with close to 3,500 members with chronic conditions, while 1,400 members across all our Funds called our 24-Hour Nurse Helpline for health advice.

BEYONd hEALth BENEFItS

1199SEIU members have access to a wide range of supportive benefits, from help applying for U.S. citizenship to tax and home mortgage assistance.

Citizenship: 104

home Mortgage: 205

tax Assistance: 91

total Members Served: 400

1199SEIU Funds 7

Making a Difference in Our Members’ Livesdawn Ming, ClerkShore view Nursing home1199SEIU member since 2003

“There’s much more attention being paid to health and

wellness,” Dawn said. “The whole facility feels different.”

Being an 1199SEIU Wellness Champion helped Dawn Ming – and her co-workers – get healthier.

When Dawn Ming attended the Greater New York (GNY) Benefit Fund delegates’ training in the spring of 2012, the announcement of the new GNY Wellness Champion initiative was music to her ears. She wanted to lose weight and become more active, but up to that point she had experienced little success in maintaining healthier habits. So she registered as a Wellness Champion – signing a commitment to participate and encourage other members’ participation in programs designed to help them lose weight, quit smoking, manage a chronic condition or otherwise improve their health – and the results have followed. “I’ve lost 10 pounds,” Dawn said. “I have more energy, and, to put it simply, I feel great.”

Despite being a vegetarian and considering herself a fairly healthy eater, she made adjustments to her diet, like eliminating fried foods and replacing soda and other drinks with water. She started doing a 10- to 15-minute stretching and calisthenics routine every morning, and made changes to increase her activity level over the course of a day, such as taking the stairs rather than the elevator. But perhaps the most significant change was that along with other members, she now walks for 30 minutes during her lunch break several times a week. “At least a dozen members from Shore View Nursing Home took the message from the delegates meeting to heart,” Dawn said. “A few have joined a gym, and others walk around the grounds on their lunch hour or their break.”

The Wellness Champion Program has given her the chance to lead by example and share in her co-workers’ successes, Dawn said, adding that she’s never seen a shift in the culture among staff members like the one that’s taking place now. “There’s much more attention being paid to health and wellness,” she said. “The whole facility feels different.”

8 1199SEIU Funds 9

1199SEIU Greater New York Pension Fund

HighlightsOur 1199SEIU Greater New York Pension Fund supports 1199SEIU retirees in achieving the financial security that they will need in retirement. Eligible retirees receive a defined benefit pension – a set monthly payment that fewer than one in five workers around the country can count on today. With $471 million in assets, the Pension Fund currently pays out more than $53 million each year to our 8,700 retirees and their beneficiaries.

$53.2 million paid to 8,716 retirees in 2012

SOUNd INvEStMENt StRAtEGYOur diversified investment strategy enables our Fund to continue our recovery from the 2008 market crash.

Net Pension returns

2008 = 31.9% 2009 = 18.2% 2010 = 14.7% 2011 = 1.3% 2012 = 14.7%

Pension Assets

2008 = $341 Million2009 = $383 Million2010 = $421 Million2011 = $419 Million2012 = $471 Million

Target Asset Allocations

EquityU.S. Equity = 20%Int’l Equity = 15%Emerging Market = 5%total Equity = 40%

Fixed IncomeU.S. Fixed Income = 25%Int’l Fixed Income = 0%total Fixed Income = 25%

Alternatives Real Estate = 8%Private Equity = 8%Hedge Funds = 13%Special Opportunities = 6%total Alternatives = 35% Total = 100%

Equity40%

Alternatives35%

Fixed Income

25%

Improving Service for Our Members: Our Funds’ Eligibility departmenttechnological advances and streamlined operations bolster member support and improve efficiency across all of our Funds.

Our 1199SEIU members work in hundreds of nursing homes, hospitals and home care agencies and a variety of job titles, both full time and part time. Coordinating their benefit eligibility and ensuring over 400,000 members in all of our Funds, retirees and dependents can access health coverage, pension, training and child care benefits is a massive task – one that is handled by our Eligibility Department, part of the Strategic Support Division. The Strategic Support Division (SSD), under our National Benefit Fund, supports the administrative operations of all of our Benefit, Pension, Training and Employment and Child Care Funds. Throughout 2012, the SSD, led by Chief Administrative Officer Donna Rey, worked closely with her Eligibility, Human Resources and Information Technology teams to maximize the Eligibility Department’s efficiency and make sure our members can access their benefits when they need them.

One major initiative completed in 2012 was the final implementation of a data management system uniquely designed for our Funds’ complex needs, which better streamlines service for our members. Eligibility Director Darryl Garrison describes the system as housing all the information for each member or retiree in a central location, allowing staff to quickly verify benefit eligibility and perform a wide range of other administrative functions. “In 2012, we really started to see the fruits of our labor,” Garrison said. “The new system allows us to automate functions, operate more efficiently and establish an electronic record that is both accessible to all the required staff and updated immediately whenever a new document is scanned and attached to a member’s file.”

Beyond the technological advances, Garrison is also enthusiastic about new ways his team is working together to improve the member experience. Engaged by the Human Resources Department, the Eligibility Department formed a collaborative Labor-Management Team (LMT) to improve their workflow – the very same approachused by our Training and Employment Funds’ Labor Management Initiatives, Inc., at many of our industry’s facilities. Made up of front-line Eligibility staff members – who are also members of the Benefit Fund’s Staff Association – and management representatives, the team was empowered to spur organizational changes by encouraging maximum participation from staff, reported Human Resources Chief

Brandy Shiloh. The LMT also led to the establishment of a new Business Intelligence Unit. Comprised of data analysts and quality control reviewers, this Unit now charts and graphs weekly performance targets across all areas – including enrollment, data entry, quality control, coordination of benefits, COBRA and hotline support – and posts them throughout the department. In addition to improving productivity, the changes have fostered a healthy competitive spirit and helped management spot potential for growth. “The LMT process has given us the ability to better identify front-line staff that have the knowledge, drive and potential to work at the next level as a coordinator, which in turn allows our managers and assistant managers to be more effective,” Garrison said. “The end result is we’re able to do a better job at achieving our goal, which is always to provide the highest quality service to our members.”

The Strategic Support Division (SSD), under our National Benefit Fund, supports the

administrative operations of all of our Benefit, Pension, Training and Employment

and Child Care Funds.

Before After

1199SEIU Greater New York Education Fund

HighlightsOur 1199SEIU Greater New York Funds work to support our healthcare industry and its workforce, ensuring that 1199SEIU members and facilities have the skills and resources they need to provide quality resident care. Together, our 1199SEIU Greater New York Education Fund, 1199SEIU Greater New York Job Security Fund and 1199SEIU Greater New York Worker Participation Fund, Inc., served 11,628 members in 2012. Members can use their benefits to earn high school, college and advanced education degrees, upgrade their job skills to meet the constantly changing needs of the nursing home industry, access placement services and extended benefits if they are laid off from their jobs and participate in joint labor-management projects to improve the work environment and quality of care at their facilities. In addition, nursing home employers benefit from a dedicated, highly skilled staff prepared to meet tomorrow’s healthcare needs.

Our 1199SEIU Greater New York Education Fund piloted a new “LPN Transition to Practice” experiential education program to help newly graduated Licensed Practical Nurses (LPNs) find jobs in their new title. Building on the pilot’s success, the course will now be offered to all new LPNs.

10

1199SEIU Greater New York Job Security Fund (GNYJSF): 484 members served

In the aftermath of Hurricane Sandy, our GNYJSF mobilized to support affected employers and members by contacting every facility that received evacuated residents to determine if they needed additional staff, setting up a hotline for displaced members and supporting over 400 workers who were laid off due to facility closures. (See page 14.)

1199SEIU Greater New York Worker Participation Fund, Inc.: 150 managers and union staff participants served

With the nursing home industry under tremendous pressure to enhance care and lower costs, the 1199SEIU Greater New York Worker Participation Fund, Inc., engaged labor-management teams from six nursing homes to develop innovative methods for implementing MDS 3.0, the survey that drives facilities’ quality care and reimbursement systems, and to examine how MDS 3.0 can support the new Quality Improvement Survey (QIS) process. The teams also shared best practices around creating more effective work processes to improve clinical outcomes; resident, family and staff satisfaction; and fiscal performance.

1199SEIU Funds 11

Making a Difference in Our Members’ Lives

Winsome hinds-Wilson, Nursing AssistantFulton Commons Care Center1199SEIU member since 2004

Our training programs support members like Winsome Hinds-Wilson in achieving educational goals and filling shortages within the nursing home industry.

For as long as she can remember, Winsome Hinds-Wilson knew she wanted to help people in her community by working in healthcare. She dreamed of being a nurse but worried that financial hurdles would prevent her from reaching her goal. Thanks to the benefits offered through our 1199SEIU Greater New York Education Fund, however, Winsome’s dream became a reality this past April when she completed a 17-month program to become a Licensed Practical Nurse (LPN). Throughout 2012, she juggled her full-time schedule as a nursing assistant at Fulton Commons Care Center with LPN classes offered through the Eastern Suffolk BOCES program – all while raising her 9-year-old daughter. “It was very tough,” she said. “Besides my full schedule, I needed to study and complete my assignments, which meant there was no time for much else.”

Winsome said she was proud of the example she set for her daughter, Asia, who supported her “100 percent” despite the fact that her rigorous schedule meant less time for them to spend together, at least while school was in session. Of course, Asia was front and center when her mother completed her mission of becoming an LPN. “We went out for a special dinner after my graduation,” Winsome said. “It meant a lot to both of us.” The two live in Queens, near her new employer, another 1199SEIU institution, where she began working as an LPN in June. In many ways, she said, she has realized her long-held desire to give back to the community – in large part thanks to her 1199SEIU membership. “None of this would have been possible for me without the benefits from 1199,” she said. “The opportunities are there if you’re willing to work for them, and the support I’ve had along the way helped me through.”

After several years of studies – from pre-LPN and LPN classes to the full-time clinical experience requirements necessary to complete the program – Winsome said she’ll be taking a break from school. But given how she feels about where she is today – and where she wants to go – it’s not likely to be a very long break. “The LPN program was the most worthwhile achievement in my professional career so far, but my goal is to keep going,” she said. “I want to be a Registered Nurse someday.”

“None of this would have been possible for me without the benefits

from 1199,” Winsome said. “The opportunities are there if you’re

willing to work for them, and the support I’ve had along the way

helped me through.”

OUR WORk IN 2012

1199SEIU Greater New York Education Fund: 10,994 members served

enrollment by Program Type:

tuition Assistance: 438

Workplace Skills: 480

RN Programs: 174

Admissions and Support Services: 9,188

LPN Programs: 114

Continuing Education: 600

*Note: Some members participated in more than one program.

1199SEIU/Greater New York Child Care Fund

HighlightsAs working families across the country struggle to balance their work and home lives, 1199SEIU members enjoy the security and peace of mind that their unique child care benefits provide. Our Greater New York Child Care Fund offers a wide assortment of programs to more than 1,000 children each year. These benefits support our members and their children from infancy through college with voucher reimbursements for day care, after-school care and summer day camps; quality early childhood education through our 1199SEIU Future of America Learning Center; holiday and Saturday cultural arts programs for children whose parents work weekends; summer sleep-away camp; WorkForce 2000 and SAT Prep programs to help teens succeed in school and in the workplace; and a college fair and scholarships. The Fund also connects parents with the services they need through our Child Care Resource and Referral Services, and offers them workshops and seminars throughout the year.

Programs Benefits Provided

Vouchers (After-School and Day Care)

Summer Camp

Scholarships

Holiday Programs Youth Programs

Cultural Arts Programs

Child Care Learning Center TOTAL

OUR WORk IN 2012

• Sixtymembersparticipatedin12parentingseminars,whichincluded four new topics based on what our members told us were frequent parenting challenges: guiding and monitoring children’s computer usage, finding after-school programs, applying for and preparing adolescents for high school and finding resources to enhance children’s educational growth and development.

• FiftymembersandchildrenattendedtheFund’sCollegeFair, meeting with over 55 representatives from colleges and organizations and participating in college admissions and financial aid workshops throughout the day.

• Weawardedscholarshipsto226collegestudents,includingsixforthe Next Generation Nursing Program. We also gave 37 incentive awards to students who achieved higher than a “B” average.

12

618

340

226

55

34

5

1

1,279

1199SEIU Funds 13

14

Weathering the Storm: 1199SEIU Greater New York Funds Step Up to Support Members Affected by Sandy

As soon as the storm ended, our Greater New York Benefit Fund’s Member Assistance, Member Services and Outreach teams were on the frontlines, helping members in the field, providing crisis counseling, working telephone lines, meeting with members at our Manhattan and satellite offices and connecting them with resources to support them during the recovery. The Benefit Fund’s staff also created a guide with information on emergency assistance, temporary shelter, food banks, social and family service resources and more, which was distributed and posted on our website immediately following the storm. Meanwhile, the Greater New York Benefit Fund Trustees issued a resolution helping to ensure that members who were displaced by the storm or had their work hours reduced would not lose their existing benefits during the recovery due to lost work time. Moreover, when the storm forced 1199SEIU facilities to evacuate residents and additional workers were needed at their new locations, our 1199SEIU Greater New York Job Security Fund and the 1199SEIU Employment Center not only referred qualified candidates from closed facilities but also provided services to the displaced workers.

Furthermore, since the storm hit during the Greater New York Child Care Fund’s two-month registration period for 2013 benefits, the Child Care Fund (CCF) extended registration through the first week of November so no members would miss the deadline due to storm disruption. In addition, CCF staff members volunteered their time to visit communities in the Rockaways and on Staten Island – which were among the areas hardest hit by the storm – to distribute supplies and offer help to people in need.

Our Greater New York Funds have also continued to be involved in the ongoing recovery effort. In December, the Quality Care Community – a collaborative effort between employers and the 1199SEIU Nursing Home Division to improve care for residents and staff of the homes – hosted “Healing after the Storm: Rebuilding Community.” The conference, which was dedicated to addressing the many needs of nursing homes and staff in Sandy’s aftermath, was attended by 400 participants from 30 long-term care facilities.

Despite the many challenges our members faced throughout this difficult time, their 1199SEIU benefits were there for them.

1199SEIU members know they can count on their Funds to help when they are in need. So, while the Union and the industry mobilized to support residents and 1199SEIU members affected by Superstorm Sandy in New York City and the surrounding areas, our Funds stepped up to ensure that our hardest-hit members had the support they needed to ride out the recovery.

1199SEIU Funds 15

BENEFIT FUND

Yvonne Armstrong1199SEIU United Healthcare Workers EastAudit Committee, Collections CommitteeCost Containment Committee, Executive CommitteeInvestment Committee

Michael BalboniGreater New York Health Care Facilities AssociationAppeals Committee, Audit Committee, Collections Committee Cost Containment Committee, Executive CommitteeInvestment Committee

Lisa Brown1199SEIU United Healthcare Workers East

Maria Castaneda1199SEIU United Healthcare Workers EastAppeals Committee, Audit CommitteeCost Containment Committee, Executive CommitteeInvestment Committee

Pearl Granat1199SEIU United Healthcare Workers EastAppeals Committee, Collections Committee

William PascocelloAppeals Committee

Robin Rosen Greater New York Health Care Facilities AssociationAudit Committee

John Seales1199SEIU United Healthcare Workers EastAppeals Committee

Allan Sherman1199SEIU United Healthcare Workers EastCollections Committee

Neva Shillingford1199SEIU United Healthcare Workers EastAppeals Committee

Milagros Silva1199SEIU United Healthcare Workers East-NJ Region

Howard SukoffCreative Management

Nelson Valdez1199SEIU United Healthcare Workers East

Doug WissmannHillside Manor Rehabilitation and Extended Care CenterCollections Committee, Cost Containment Committee

PENSION FUND

Shaywaal Amin1199SEIU United Healthcare Workers East

Yvonne Armstrong1199SEIU United Healthcare Workers EastAudit Committee, Collections CommitteeCost Containment Committee, Executive CommitteeInvestment Committee

Michael BalboniGreater New York Health Care Facilities AssociationAppeals Committee, Audit Committee, Collections Committee Cost Containment Committee, Executive CommitteeInvestment Committee

Lisa Brown1199SEIU United Healthcare Workers East

Maria Castaneda1199SEIU United Healthcare Workers EastAppeals Committee, Audit CommitteeCost Containment Committee, Executive CommitteeInvestment Committee

Pearl Granat1199SEIU United Healthcare Workers EastInvestment Committee

William PascocelloAppeals Committee

Robin Rosen Greater New York Health Care Facilities AssociationAudit Committee

John Seales1199SEIU United Healthcare Workers East

Allan Sherman1199SEIU United Healthcare Workers East

Neva Shillingford1199SEIU United Healthcare Workers EastAppeals Committee

Nelson Valdez1199SEIU United Healthcare Workers East

Doug WissmannHillside Manor Rehabilitation and Extended Care CenterCollections Committee, Cost Containment CommitteeInvestment Committee

EDUCATION FUND

Yvonne Armstrong1199SEIU United Healthcare Workers East

Michael BalboniGreater New York Health Care Facilities Association

Pearl Granat1199SEIU United Healthcare Workers East

William Pascocello

Robin RosenGreater New York Health Care Facilities Association

Allan Sherman1199SEIU United Healthcare Workers East

Milagros Silva 1199SEIU United Healthcare Workers East – NJ Region

Doug WissmannHillside Manor Rehabilitation and Extended Care Center

CHILD CARE FUND

Yvonne Armstrong1199SEIU United Healthcare Workers East

Michael BalboniGreater New York Health Care Facilities Association

Frances Gentle1199SEIU United Healthcare Workers East

William Pascocello

Robin RosenGreater New York Health Care Facilities Association

Allan Sherman1199SEIU United Healthcare Workers East

Our Funds’ 2012 trustees