|
CORRE Home
Recent Activity
Up
Down
Presentation on Pensions of Retirees of
Oak Ridge DOE Facilities
By
Coalition of Oak Ridge Retired
Employees
(CORRE)
August 12, 2003
|
Comparison of Oak Ridge DOE
operating contractor retirement plans with plans at DOE facilities in
California and New Mexico- February 2003
|
|
|
|
|
|
|
|
Oak Ridge Plan
|
University of California Labs
(LLNL, LANL, LBNL)
|
Sandia National Laboratory
|
|
Compared plan results
|
|
|
|
|
Initial Benefit
Retiree – 30 yr employed/60 yr
age
|
42 percent of salary
|
75 percent of salary
|
60 percent of salary
|
|
|
|
|
|
Plan Policies
|
|
|
|
|
Historical Multiplier
|
1.2
|
2.4
|
1.5
|
|
Current Multiplier
|
1.4 (at 30 years)
|
2.5
|
2.0
|
|
Cost of living adjustment-
standard
|
Ad Hoc
|
Maintain 75% of orig. purch.
pwr. +ad hoc to 85%
|
Ad Hoc
|
|
|
|
|
|
|
DOE-Contractor Practice
|
|
|
|
|
Adjustments
|
Two adjustments since 1984
|
Adjustments every year
|
|
|
Last Adjustment
|
2001
|
2002
|
2002
|
|
Percentage (average)
|
13 %
|
COLA
|
15%
|
|
Cap on adjustment
|
Yes, first $40,000
|
No
|
No (nor gaps)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LLNL
– Lawrence Livermore National Laborator
LANL
– Los Alamos National Laboratory
LBNL
– Lawrence Berkley National Laboratory
|
DOE Fund for Retirees of Oak Ridge Contractors1
Analysis of Funds
Estimated by CORRE – January 20032
|
| Item |
Subtotal
($Millions)
|
Total
($Millions)
|
|
|
|
|
|
Fund Assets
|
|
2502
|
|
Liabilities
|
|
2130
|
|
Retirees
|
1130
|
|
|
Active Employees
|
1000
|
|
|
Surplus – Now (1/2003)
|
|
372
|
|
Proposal for 2003
|
|
187
|
|
Adjustment (15%avg.)
|
170
|
|
|
Minimum Pension
|
17
|
|
|
 Fund Surplus
(After adjustment)
|
|
185
|
|
Liabilities after adjustment
|
|
2317
|
|
(1)
Covering
approximately 12000 retirees from ORNL, Y-12, and past K-25 and
covering current employees of ORNL and Y-12.
(2)
These estimates of CORRE are based on the best
available data from pension fund reports and information on number of
retirees and employees and are conservative.
|
Steps
Needed to Adopt an Equitable Policy for the Pensions of Oak Ridge
Retirees
|
|
|
|
·
Acknowledge
the plight of the long-term, older retirees and surviving spouses with
below minimum pensions and propose correction. (CORRE feels $600 for
retirees and $400 for surviving spouses is needed.)
|
|
|
|
·
Determine
what adjustments to pensions can be made now to defray part of the loss
of retiree purchasing power. (CORRE thinks maintenance of 75 percent of
original value is fair and that a 15% adjustment is warranted now.)
|
|
|
|
·
Recognize
there has been no continuing plan for providing reasonable adjustments
to retiree pensions on a regular basis and develop one. (CORRE
advocates a biannual review and adjustment to maintain 75% of original
pension value.)
|
|
|
|
·
Include
CORRE representatives on your pension advisory boards in a non-voting
capacity so that information exchange is a continuing process that
benefits all parties.
|
CORRE Home
Recent Activity
Up
Down
|
