Coalition
of
Working for Fair,
Equitable, and Competitive Benefits
For Former K-25, Y-12, and ORNL Employees
P. O. Box 4266
Press Release
For Immediate Release
Contact:
Sandy Dean at 865-966-8356
Email:
deansk@tds.net
Tennessee Congressman, DOE, and DOE Contractor management are requested
to support new policy for DOE Defined Benefit Retirement plans
The Coalition of Oak Ridge Retirees (CORRE) sent
letters today to Senators Lamar Alexander and Bob Corker and Representatives
Lincoln Davis, John Duncan, and Zach Wamp requesting them to support and
advocate the adoption of a new policy for the defined benefit plans of
Department of Energy contractors. The
new policy would ensure that adjustments to pensions are made to compensate
partially for inflation when there are sufficient funds in the plans. The pension plans are paid for by the
DOE. Additional letters were sent to the
managers of contractors in
Modification of the DOE
Draft Document Notice N 351.1 is required
DOE
Notice N 351.1 is slated to become the policy of DOE after resolution of
comments and “stakeholder” input invited by DOE recently. (Ref: http://management.energy.gov/request_for_comments.htm) CORRE is submitting comments to DOE on 351.1
to DOE in response to the invitation.
CORRE is recommending changes that would implement new DOE policies on
the management and administration of pensions when it is finalized and becomes
a DOE order. In particular, there is a
need to incorporate clarifying and defining language in the notice to provide
guidelines for fair treatment of DOE contractor retirees who receive their
benefits from defined benefit (DB) pension plans implemented by their
contractors. This is extremely important
and urgent, as most of the 100,000 retirees of DOE contractors retired under
defined benefit plans.
CORRE’s
comments on DOE N 351.1 (attached) provide the changes that are needed to
establish criteria and guidelines to be used by DOE in managing and
administering DB plans, especially in assuring consideration of
retirees. These criteria would go a long
way toward removing the subjectivity and neglect now involved in
administering DB plans, and toward implementing a fair system for
treatment of retirees across the DOE complex.
History of the Failure of DOE to administer pension
plans fairly
According
to DOE, 45 defined benefit plans and 37 defined contribution plans serve
approximately 100,000 retirees and another 100,000 current employees and future
retirees of DOE contractors in 20 different states. At best, DOE has a spotty, disinterested, and
blemished record in managing these plans in a consistent and prudent manner
that recognizes the history, implied promises to retirees, and underlying
premises of the contractors who put these plans in place for "their"
employees. Surely, a consensus should be sought among the
representatives and senators of these states (and their colleagues) to see that
appropriate changes are made. The
current situation requires a Congressional solution, and CORRE is
asking members of its
History of the Failure
of DOE Pension Plan for the retirees of
The pension plans of the contractors of DOE in
See attached graphics for examples of this
discriminatory practice by DOE. (Fig 1
and Figure 2)
What are the principal provisions of the recommendations for DOE Policy?
CORRE
recommends the attached detailed guidelines and criteria be used to implement
and manage such augmentation, and that these criteria and provisions be
incorporated into N 351.1. The following
is a summary of the detailed criteria:
- Conditions under which the
separate pensions of defined benefit plans will be administered.
- That the under-funded plans
will be funded in accordance with the Pension Protection Act (PPA)
requirements.
- Retiree benefits from fully
funded DB plans (i.e., assets/liabilities=100%) may be augmented at the
contractor’s request and with the advanced approval of the Secretary of
Energy (Secretary), provided the funds are available and the augmentation
is based on sound management practices as regards that individual DB plan
fund.
- Under no conditions shall the
contractor propose or DOE approve a transfer of funds from the DB plan
surplus for other purposes.
- At least biennially (every
two years), DOE contractors shall review lost purchasing power of existing
retirees and qualified survivors and propose appropriate augmentation of
pensions.
- At a minimum, the goal of DOE
and the contractors shall be to maintain pensions at 75% of lost
purchasing power calculated as follows and using the U.S. Department of
Labor, Bureau of Labor Statistics.
- The conditions under which
the Secretary will approve augmentation or adjustments for retirees.
- If there are insufficient
funds, the specification of how the Secretary of Energy will budget for
increases in the pension fund.
- Contractors and DOE are to be
cognizant of historical practices at the locations managed and provisions
for augmentation of DB plans for retirees and covered employees at such
locations.
These charts that show
why the DOE must have guidelines for administering defined benefit plans.
Chart
1. There are sufficient funds in the
Chart
2. The DOE has not made a contribution for its current employees from the DOE
budget to the
Chart
3. Most of the
To obtain more information
CORRE
officials are available for provision of additional information. Contacts:
- L. (Pete) Lotts , 865-675-7394, allots@tds.net
Keith Kibbe,
865-938-1467, kandjkibbe@comcast.net
End of
Press Release