History of adjustments to retiree pensions:

1969, 1973, 1975, 1977, 1980 (Union Carbide is replaced by Martin Marietta)

1987 (Directed by DOE), 1992 (MMES), 2001. 

Prior to their departure from Oak Ridge, Lockheed-Martin attempted to remove funds from the Pension Trust Fund through an “IRS 420 Transfer” for “innovative financing.” 

In the year 2000 the Pension Trust Fund had a surplus of over One Billion Dollars and the last retiree to get an adjustment to their pension had retired in 1988, a gap of 12 years. 

The purchasing power of pensions had dwindled, with the older, lower job level retirees and surviving spouses feeling the greatest adverse impact.

Replaced 50% of the CPI since last increase 

Ranged from 4% to 23% (Did not apply to pensions over $40,000 nor did it apply to those retiring after April 1, 1998) 

Ignored the request for “minimum pensions”

A minimum pension is proposed for retirees, who took early or normal retirement, and had 20 or more years of company service credit. The minimums would be $600 per month for about 430 eligible retirees, and $400 per month for about 500 surviving spouses. Estimated actuarial cost: $17 million. 

Graduated adjustments to the retiree pensions averaging 15%. Estimated actuarial cost: $170 million. This adjustment would bring pensions up to about 75% recovery of initial pension values. It is our long term goal to assure maintenance of pension values at this level. We are no longer proposing an annual COLA but we are proposing a standard practice of review and adjustment on a biannual basis to maintain 75% of the purchasing power of the retirement earned. 

Membership on the Pension Benefits Advisory Boards of BWXT-Y-12 and UT/Battelle.  

CORRE 2003 Position Paper

Discuss briefly and define “equitable treatment” 

Comparison of Oak Ridge vs. Western Labs (Table showing lower initial pensions and infrequent smaller adjustments. Then show chart of historical comparison and note growth in gap) 

Table showing value of fund and estimate of cost of adjustments proposed 

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