Administratorship FAQ
WHAT IS AN ADMINISTRATORSHIP?
An administratorship is a process established under Article IX of the International Constitution, under which the International President is authorized to appoint representatives to assume responsibility for the day-to-day affairs of an affiliate when the affiliate is found to have violated the International Constitution. Under this provision, he may appoint administrators to carry out these responsibilities on his behalf.
WHY WAS THE RETIREES ASSOCIATION OF DC 37 PLACED UNDER ADMINISTRATORSHIP?
The decision to place an AFSCME affiliate under administratorship is never made lightly, and only when absolutely necessary to protect the interests of you, the members. In this case, the International Union recently became aware that the DC 37 Retirees Association was not following AFSCME’s Financial Standards Code or Internal Revenue Service (IRS) requirements, which jeopardized the Retirees Association's funds and assets.
DOES THE ADMINISTRATORSHIP IMPACT MY RETIREMENT BENEFITS?
There is no change to your health care and pension benefits — or your Retirees Association membership. As always you can contact the DC 37 Health and Security Fund with any questions or concerns regarding these benefits at (212) 815-1234 or toll-free at 1-877- 323-7738 (from outside the NY-NJ- CT area).
AM I STILL A MEMBER OF THE DC 37 RETIREES ASSOCIATION?
Yes, the association is still an active and important retiree affiliate of AFSCME and the administratorship does not impact individual membership. If you have any questions about your membership, please call the association officer at 212-815-1781.
WHO IS RUNNING THE RETIREES ASSOCIATION?
President Saunders has appointed AFSCME International Union Retirees Director Ann Widger to serve as administrator. And to serve as deputy administrator he has appointed Terri Brady, Retirees Field Coordinator.
WHAT IS THE ROLE OF THE ADMINISTRATORS?
The administrator and deputy administrator are responsible for carrying out all day-to-day affairs of the association. The administrators step into the shoes of the officers and are responsible for fulfilling the officers’ responsibilities under the association’s constitution.
DOES THE ASSOCIATION STILL HAVE OFFICERS?
When an administratorship is imposed, the constitutional officers and executive board members are removed from their positions and no longer have authority to act on behalf of the association.
WAS THE ASSOCIATION GIVEN A CHANCE TO ADDRESS THE ISSUES?
Yes. In pursuing these matters with the association, it became clear that there was no significant effort or progress being made to correct the issues that caused the administratorship. While there is no evidence of any individual financial wrongdoing, these matters cannot go unaddressed.
HOW SERIOUS WERE THE VIOLATIONS?
The International president believed they were serious enough to act on an emergency basis requiring him to take immediate action. Under the International constitution the impartial Judicial Panel will convene a hearing within three weeks to hear evidence and then will issue a finding as to whether an administratorship was necessary.
WHY DIDN’T THE INTERNATIONAL UNION STEP IN EARLIER?
The International Union doesn’t monitor the day-to-day affairs of affiliates to ensure they are doing the bare minimum to maintain their tax-exempt status. Affiliates are responsible for abiding by their constitution and the International Constitution, as well as the AFSCME Financial Standards Code, including IRS requirements. We acted shortly after discovering the association’s failure to do this.
IS THIS REALLY BECAUSE OF THE DEBATE AROUND NYC RETIREE HEALTH CARE?
Make no mistake: It is not. It is about serious violations of AFSCME’s Financial Standards Code and the International Constitution, which has resulted in the IRS revoking the association’s tax-exempt status.
WHAT HAPPENS TO THE RETIREES ASSOCIATION’S ASSETS?
Under the International Constitution, the administrator must preserve the association’s assets and act only in the interest of the retiree association’s members. Its funds cannot be used by the International Union or by District Council 37.
WHAT IS THE GOAL OF THE ADMINISTRATORSHIP?
The goal of the administratorship is to put the Retirees Association’s affairs back in order. Retiree members are a vital part of our union and have a right to an organization that lives up to the highest standards of fiscal accountability, responsibility, and transparency.
WHEN WILL THE ADMINISTRATORSHIP BE LIFTED?
The decision to terminate the administratorship rests solely with the International President and occurs after the concerns that led to the administratorship have been rectified.
HOW DO I GET INFORMATION ABOUT THE ADMINISTRATORSHIP?
To stay up to date, sign up to receive email alerts at www.dc37retireesassociation.org.