Here is what CORRE is requesting in pension adjustments and equitable treatment.

Pension Request Number 1

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

The ravages of inflation are compounded greatly by time; then huge increases in medical costs consume disproportionately large fractions of what remains of original purchasing power.

The DOE provided an estimated cost of $95M if implemented as of January 1, 2006.(1)

(1) Reference: DOE letter dated December 23, 2005, Donald R. Erbschloe, Acting Chief Operating Officer, Office of Science, to Dave Reichle, President of CORRE. CORRE believes that this estimate may be too conservative to restore 75% of lost buying power and that the figure is likely to be on the order of $200 M.

Pension Request Number 2

Extend to retirees the 2% flat rate spousal reduction that was given to employees of UT-Battelle and BWXT in July 2004.

In 2002 the Sandia National Laboratories implemented a flat rate spousal reduction benefit for active employees and granted the same benefit to all retirees.

The company estimates this cost at $51M, if implemented as of January 1, 2006.(1)

(1) Reference: DOE letter dated December 23, 2005, Donald R. Erbschloe, Acting Chief Operating Officer, Office of Science, to Dave Reichle, President of CORRE.

Pension Request Number 3

CORRE recommends that Bechtel-Jacobs and Wackenhut pension plans be improved so that their plans are consistent with the BWXT/UT- Battelle Multiple Employer Pension Plan.

CORRE recognizes that various contractor retirement plans now exist in Oak Ridge which all evolved from the original Union Carbide plan that covered all Oak Ridge contractor employees. This resulted in inequity.

Most of the retirees from these “split-off” plans spent most of their career working under the original, single contractor plan. They did not expect to have retirement benefits frozen, nor did they expect to be treated not as well when DOE moved their employment to a different contractor.

CORRE 2008 Position Paper