• Extend the 2% flat rate spousal reduction, given to employees of UT-Battelle and BWXT in July 2004, to retirees as well.

• DOE estimates this cost at $51M, if implemented as of January 1, 2006. 
  

• Sandia gave their retirees this benefit simultaneously with employees in 2002.

• Provide all retirees pension adjustments that recover 75% of inflationary losses.

• This would amount, on average, to a 1.3%per year increase for every year since retirement.

• Actuarial cost estimated at $95M if implemented as of January 1, 2006.

• Treat all DOE Contractor retirees in Oak Ridge the same.

• Bechtel-Jacobs and Wackenhut grandfathered retirees should be treated similarly to BWXT and UT-Battelle retirees. 
  

• Stop practice of introducing contract differences in pension benefits between Oak Ridge contractors.

• Oak Ridge retirees’ pensions now average less than 50% of original value. 
  
• The last general adjustment was implemented in 2001.
  

• Long history of adjustments by prior contractors Union Carbide and Lockheed Martin up to the early 1990s.

• BWXT-UT-Battelle gave Pre-4/98 retirees an average 11% adjustment in 2001 and granted a “minimum pension” benefit in 2004 to 10% of retirees.

• The requested adjustments, if made, would amount to a boost to the local economy equivalent to $55 Million per year.

• Oak Ridge Contractor employees have been treated inequitably.

• DOE Contractor retirees in Oak Ridge still have one of the poorest defined-benefit pension in the DOE system. 
  

• The surplus over actuarial requirements in the BWXT/UT-Battelle Pension Fund is over half a billion dollars, even after the Contractors enhanced the pensions for all employees in 2004.  (See statement of fund status based on estimates and values of the contractors.)

• Since the last retiree adjustment, there have been improvements in the current employees’ future pension benefits, but nothing was given to retirees.

• Contractors (the Federal Government) have not made a contribution to the Oak Ridge multiple-employer pension plan since 1984. 
  

• The Government has made contributions to pensions at other DOE sites routinely. 
  

• At many sites, the annual contributions are 9-10% of salary. 
  

• In Oak Ridge, the surplus is used to pay the future retirement future benefits for active employees.

• The DOE plans to freeze all defined benefit pensions at present levels, disregarding the practice of DOE contractors over the years who made adjustments periodically for inflation.

• DOE notice N 351.1 expresses this intent.  (Implementation of this notice has been delayed by pressure from members of Congress.)

• To ask the Department of Energy, including NNSA, and the Contractors to make adjustments within the next 3 months to the pensions of Oak Ridge Retirees.  (Do not request more studies.)

• To extend the 2% flat rate spousal reduction to retirees.  Provide all retirees pension adjustments that recover 75% of inflationary losses.

• Put in the budget legislation the requirement for DOE, including NNSA, to biennially review pensions, the need for adjustments, and report results to pensioners and to Congress.  (Modify the DOE Notice N 351.1.)

• No new funds are needed to grant requested adjustments.

• No new money needs to be appropriated by Congress.
  

•  No new DOE contributions required. 
  

• Funds to make adjustments possible are but a fraction of current Oak Ridge Contractor retirement fund excess.

• Retirement funds are not private contractor money.

• Oak Ridge Retirement Fund gradually accumulated from annual DOE contributions through 1984. 
  

• No DOE contributions have been made since 1984. 
  

• Retirement funds are in a “lock box”. 
  

• Retirement fund “lockbox” is passed from operating contractor to operating contractor.
  

• Keys to lockbox are also passed on to incoming contractor.

• CORRE has had years of discussions with current contractor and DOE to no avail.

• Two prior attempts (2000, 2001) by DOE and Contractor to divert/launder excess retirement funds to facility construction were stopped.

• First time by CORRE discussions with DOE. 
  

• Second time required Congressional pressure.

• It is clear to CORRE that DOE/Contractor intentions are to use fund surplus for non-retiree purposes.

• Two prior diversion attempts.
  

• 2% flat rate spousal reduction was granted toactive employees in 2004 BUT NOT TO RETIREES.

Working for Fair, Equitable, and Competitive Benefits

for

13,000 Former K-25, Y-12, and ORNL Employees

Coalition of Oak Ridge Retired Employees P.O. Box 4266, Oak Ridge, Tennessee  37831-4366

Questions and comments may be sent to CORRE President