AGRE Identifies Positions

The Actions Committee of the recently formed Alliance of Grandfathered Retirees and Employees (AGRE) met on December 17, 2007 at the USW Union Hall. The newly developed AGRE Blog was reviewed by committee members, and e-mail notifications of this Blog will be sent to all the Grandfathered (GF) retirees and employees who have provided us with contact information.

The primary objectives of AGRE are to obtain and maintain pension and other benefits that are equivalent to those received by workers at Y-12 and ORNL and to safeguard the Pension Trust Fund. In brief, these positions are listed below:

• Integrate the BJC Grandfathered Employees Health and Welfare Administration with those of Y-12 and ORNL to obtain better pricing and cost savings in administration, custodial, and Trust fees for DOE, employees, and retirees.
• Integrate the BJC Health and Welfare Plans (i.e., medical and dental) with Y-12 and ORNL to dollar leverage pricing and administration fees to provide a more stable and secure benefits package for Grandfathered employees.
• Integrate the Pension Plan for Grandfathered Employees under the Master Group Trust with Y-12 and ORNL. This transition could save millions of dollars in administration fees, investment management fees, Trust fees, and custodial fees. It would also allow for assets to be leveraged to stabilize investment earings in the global economy.
• Amend the BJC Pension Plan for Grandfathered Employees by removing the 30-year-cap of retirement calculation and by adding the spouse option limit of 2 percent, thus allowing all Grandfathered employees to the same retirement benefits as Y-12 and ORNL employees.
• Investigate the BJC Grandfathered Employees Health and Welfare Trust Administration Premium Surplus Refunds to determine why participants and their beneficiaries have not been reimbursed or given premium surplus holidays over recent years. This surplus amounts to millions of dollars representing monies taken from employees for medical premiums that should have been returned to employees.

The Office of Inspector General issued an audit report dated May 2005 entitled "Contractor Post-Retirement Health Benefits at the Oak Ridge Reservation," DOE/IG-0690. This report identifies inconsistencies in how the Oak Ridge contractors (i.e., BWXT Y-12, Bechtel Jacobs Company LLC, and UT-Battelle LLC) were managing, and subsequently were being reimbursed, for post-retirement health benefits. The AGRE requests above support the IG recommendation to establish and implement a consistent corporate process for contractor post-retirement health benefits. The 17-page audit report can be found at the following web address: http://management.energy.gov/ig0690.pdf

AGRE monthly meetings are being held at the USW Union Hall in Oak Ridge on the third Thursday of each month. All Grandfathered retirees and current employees are encouraged to attend. The next meeting will be January 17, 2008, at 6:00 p.m.

Comments may be made by clicking on the "comments" link below. You may also submit questions or comments to the following e-mail address: gfemployee@yahoo.com

Formation of AGRE

The Alliance of Grandfathered Retirees and Employees (AGRE) has been established to provide a forum for grandfathered (GF) retirees and employees to come together to work toward equitable and secure retirement benefits. GF retirees and employees are a DOE designated group of workers who have met certain definition requirements, and most began their employment with Bechtel Jacobs Company LLC (BJC) on April 1, 1998, the date BJC began managing the M&I Contract for the Department of Energy.

The contract requirement of BJC to provide "Substantially Equivalent Pay and Benefits" to those who were termed "Grandfathered" was expected to extend through employment and into retirement. Alas, when BJC announced their open enrollment period from November 12-30, 2007 (which retirees did not receive until November 16), it included a jump in insurance costs for GF pre-65 retirees. The medical and dental insurance premiums were to double effective January 1, 2008, severely impacting about 547 pre-65 retirees. Fortunately for these retirees, DOE intervened and the jump in insurance costs for BJC retirees was put on hold.

Although no announcement has been made to GF retirees, BJC is now planning to move the pension fund management to Mercer Consulting on January 2, 2008. Mercer is one of the most expensve consulting firms in the United States. Pension plan participants and their beneficiaries are concerned that fees paid to Mercer will decrease the amount of the Pension Plan funds.

AGRE all-hands meetings have been held at the USW Union Hall located on Raleigh Road in Oak Ridge, TN. As a result of the first meeting on December 6, 2007, an AGRE Actions Committee was formed to begin formally identifying the concerns and issues to be addressed. At the December 13, 2007 meeting, the possible relationship between CORRE and AGRE was discussed in depth. As a result, a team will be meeting with representatives from CORRE to explore the affiliation concept and will report back to the membership of AGRE at the January meeting.

Suggestions and support are welcomed! Comments may be made directly to this blog site, or you may submit them to the AGRE e-mail adddress: gfemployee@yahoo.com

Future AGRE meetings will be held on the third Thursday of each month at 6:00 p.m. at the USW Union Hall in Oak Ridge, TN. All interested GF retirees and employees are encouraged to attend and support the activities of AGRE. Please mark your calendar -- the next meeting will be Thursday, January 17, 2008, at 6:00 p.m. at the USW Union Hall.

Grandfathered Retirees and Employees Concerns

A new organization is being formed as a result of the recent attempt by Bechtel Jacobs Company LLC (BJC) to double the medical and dental premiums for the pre-65 retirees. This organization, tentatively called Alliance of Grandfathered Retirees and Employees (AGRE), will be addressing the inequities in the benefits and pension for grandfathered retirees and employees.

A meeting has been scheduled at the USW Union Hall located on Raleigh Road in Oak Ridge, TN. Please make plans to attend.

Thursday, December 13, 2007

6:00 p.m. - USW Union Hall