Q&As from Portsmouth, Paducah, and Oak Ridge

Below are some questions that have been submitted, along with answers from AGRE:

A Portsmouth retiree asks: What is the status of having the 30-year cap removed and the spouse option limit of 2% added to the BJC pension plan?
Answer: On November 4, 2008, BJC sent Grandfathered employees and retirees the Annual Funding Notice for Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees. This report indicated that as of December 31, 2007, the plan was funded at 85 percent. AGRE does not know what impact the recent economic meltdown has had on our pension, but it's probably safe to speculate that it is somewhat lower than 85 percent. Enhancements to the plan, such as removing the 30-year cap and adding the spouse option limit of 2 percent, will cost additional money--money not available within the pension fund but would have to be provided by BJC and DOE. The spouse option of 2 percent was given to the BJC hourly grandfathered employees who work at Y-12 and who belong to the ATLC union. The BJC grandfathered salaried employees and USW union employees are still waiting for the enhancements, as are all the Grandfathered retirees.

A Paducah employee asks: What progress has AGRE/CORRE made to transition the benefits managed by BJC to those of similar quality as the Y-12/ORNL program?
Answer: AGRE continues to communicate with BJC, DOE, and state representatives on having our pension and retiree medical benefits managed along with the UT-Battelle and B&W Y-12 funds locally in Oak Ridge. The UT-Battelle, B&W Y-12, and LMUS/LMES/LMES Retirees (prior to 4/1/98) are currently being managed together; and with the BJC contract scheduled to end in December 2011, it just makes good business sense to return ours back to where it was being managed prior to the transition to BJC. More importantly, it will also provide a cost savings to retirees, tax payers, and the DOE. AGRE continues to correspond with BJC and DOE management on these matters, with meetings being scheduled in the near future. Please refer to the Position Paper posted earlier in this blog and help us communicate these issues with the government legislators in Kentucky and Ohio so that they hear our voice and act on our behalf. Sample letters and petitions can be provided to assist in this effort by sending an e-mail to gfemployee@yahoo.com.

An Oak Ridge retiree asks: What are the hold-ups in moving the pension and retiree medical benefits back to be managed with UT-Battelle and B&W Y-12?
Answer: A letter received recently from Gerald Boyd, DOE Oak Ridge Office, indicated that he did not think it feasible to "combine the pensions," which indicates our request has been misinterpreted. Informal discussions with representatives of BJC, UT-Battelle, and B&W Y-12 have indicated that all parties are willing to consider the proposal to have the funds managed along with the UT-Battelle and B&W Y-12 funds. Meetings are being requested with DOE and BJC representatives to clarify our requests.

An Oak Ridge retiree asks: What can be done to improve attendance at AGRE monthly meetings?
Answer: Unfortunately, employees are usually not overly concerned with medical insurance rates, pension enhancements, etc., until they actually retire. Active employees pay only 20% of the medical premium. When they retire, if under age 65, they will then pay 25% of a more expensive premium, one. (It's important to remember that BJC tried to double the pre-65 retiree's share from 25% to 50% during open enrollment last year, and AGRE was instrumental in getting this stopped.) Then at age 65, Medicare becomes the primary medical insurance, and retirees pay 50% of the BJC medical premium as their supplemental insurance. Also at age 65, they no longer have the vision and dental coverage benefits which are being offered to UT-Battelle and B&W Y-12 retirees. AGRE continues to be concerned with the escalating premium rates and any attempts to change the employee/retiree share of the premium. We need every Grandfathered employee and retiree to assist in the efforts to move the management of our benefits to Y-12/X-10.