Suppl Health Insurance
Inequity in Costing the Surviving Spouse Option
Equalize the cost of the Surviving Spouse Option by extending the same cost, 2% reduction in pension, to all retirees regardless of retirement date.
At retirement, retirees of ORNL, Y-12, UCOR, and NSPS may elect a Surviving Spouse Option which will provide a pension for his or her surviving spouse equal to one-half of the retiree's pension. The cost of this benefit is paid by a percentage reduction in the retiree's pension. Prior to July 1, 2004, the reduction factor ranged between 5 and 18%, depending on the ages of the retiree and the spouse. The average was approximately 8%.
On July 1, 2004, the reduction factor for future retirees of ORNL and Y-12 was reduced to 2% of pension, regardless of the ages of the retiree and spouse. This improvement in benefits was not extended to retirees of ORNL and B&W Y-12 who retired before July 1, 2004, nor was it extended to active employees or retirees of UCOR or Wackenhut. This change in benefits created inequities both within and between the contracting organizations.
Because of the national economic situation and the uncertainties within DOE's operations in Oak Ridge in 2012, CORRE has requested correction of the inequity in costing the Surviving Spouse Option as an affordable alternative to an increase in pensions. Approval of this request would improve the lot of a large fraction of the retiree/spouse population, help older retirees and spouses who need it most, and eliminate a long-standing inequity in benefits administration. It would assure that all retirees incur the same percentage cost for the same benefit. It would provide maximum benefit for minimum cost. The cost would have little impact on trust funding levels.
CORRE believes that this request is reasonable, warranted, and doable...now.
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|Working for Fair and Equitable Retirement Benefits for Former Employees of K-25, Y-12, and ORNL, and Grandfathered Employees of UCOR and NSPS.