CORRE Home   2004 Activities

July 29, 2004

Dennis Ruddy, General Manager

Y-12 National Security Complex

Jeff Wadsworth, Director

Oak Ridge National Laboratory

Gentlemen:

The Coalition of Oak Ridge Retired Employees (CORRE) notes that the union contract settlement between BWXT and UT-Battelle with the Atomic Trades and Labor Council includes several provisions that will affect the assets of the Pension Trust Fund in Oak Ridge. The 2% flat rate pension reduction factor for retirees choosing the spousal option and the removal of the 30-year "cap" on the new retirement multiplier of 1.4 will have a collective impact on the Pension Trust Fund surplus.

CORRE is aware that the 2 % flat rate surviving spouse reduction factor has also been extended to all current salaried employees, effective July 1, 2004. CORRE has no issue with these improved retirement benefits for all employees, and in fact applauds these actions. However, it appears that retirees have been overlooked. CORRE is requesting and expecting that you also apply the 2% reduction factor to all eligible retirees effective July 1, 2004. This action would be consistent with your previous decision to extend the "pop-up" provision regarding the surviving spouse option reduction factors to retirees. This precedent was fair and equitable, and we trust the same principle will be followed with the application of the surviving spouse reduction factor of a flat 2% to retirees. This is certainly the equitable action, as the retiree’s claim on the Pension Fund is just as valid as that of current employees.

As you know, many retirees will not be eligible for the reduction factor adjustment requested. CORRE also continues its broader objective of a pension adjustment for all retirees to partially offset the significant losses due to inflation that have been suffered over the years.

As a matter of information, CORRE requests that you provide information on the additional liability created by both of these new pension benefit changes for active employees. Your cooperation is greatly appreciated.