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NEWS RELEASE CORRE REPS VISIT CONGRESSIONAL STAFFS ON PENSION ISSUES (For additional information contact Sandra Dean 966-8356) FOR IMMEDIATE RELEASE SEPTEMBER 16, 2004 Representatives of the Coalition of Oak Ridge Retired Employees (CORRE) have visited with the Tennessee congressional staffs of Congressmen John Duncan, Lincoln Davis, and Zack Wamp along with Senators Lamar Alexander and Bill Frist. Meetings were held to acquaint them with CORRE’s efforts to obtain equitable pension adjustments for the more than 11,500 retirees of the Department of Energy contractor-managed facilities in Oak Ridge. Emphasis was placed on CORRE‘s principal objectives: -- to maintain pension benefits that are fair and equitable and -- to safeguard the Pension Trust Fund, the source of these benefits. The major topic of discussion was a proposed increase in pension benefits to restore an average of 75 percent of the pension value that retirees have lost due to inflation since retirement. Increases would be based on year of retirement, ranging from about 3 percent for 2003 retirees to 40 percent for 1969 retirees, an average of about 17 percent overall. A 2 percent flat rate pension reduction factor for retirees choosing the surviving spouse option is also proposed. This same benefit was extended to all active employees in 2004. This proposed increase would add about $25 million per year to the pensions of retirees living in East Tennessee and would have a significant economic impact of $56 million per year in a six-county area (Anderson, Blount, Knox, Loudon, Morgan, and Roane) surrounding the Oak Ridge DOE facilities. See attached chart showing current pension/proposed increase and economic impact. Chart is based on 17 percent proposed increase. Several adjustments have been made in retiree pensions during the last two decades; however, these adjustments resulted in recovery of less than 50 percent of inflationary losses. No one who has retired after April 1998 has received a pension adjustment. No new monies are required. The Pension Trust Fund has a surplus of over 400 million, far in excess of that needed for the requested adjustment. Resolutions supporting the objectives of CORRE and this pension increase have been passed by the Roane County Commission, Knox County Commission, Town of Farragut, and a Tennessee House Joint Resolution 787 passed the Tennessee legislature in February 2004. Attachment
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