AGRE Committee Meeting 2/4/2010

The committee meeting has not been being as well attended as we would like. Bad weather, winter or just complacent, we would like for more people to attend. We would also like more people to attend the 6pm meeting.

We had representatives from AFLAC(insurance) talk about supplemental insurance. This insurance must be taken out before reaching the age of 65. If you take it out before 65 you can keep it past that age.

We discussed some information we had been waiting for regarding our pensions. The years we received were 1999 to 2005.

Roz Torrence relayed a message regarding our Aetna premiums. She said if the money for our premiums is over on active and under on the retiree's, the money is put in whichever one is under for the payment.

January 2010 AGRE Meeting

The January 2010 AGRE meeting was canceled due to inclement weather. We are planning for our new year regarding AGRE.

We will have our next meeting Thursday, February 4, 2010. The committee will continue to meet at 4:45pm and the regular meeting will be at 6:00pm.

AGRE Update -- December 2009

The next AGRE Monthly Meeting will be held on Thursday, January 7, at 6:00 p.m. at 133 Raleigh Road, Oak Ridge, TN.

2009 AGRE Accomplishments

In June 2009, approximately 87 signed letters were collected by AGRE and mailed to Senators Lamar Alexander and Bob Corker; Congressmen Lincoln Davis, John Duncan, and Zach Wamp; Tennessee Governor Phil Bredesen; Oak Ridge Mayor Tom Beehan and Anderson County Mayor Rex Lynch ; DOE Oak Ridge Operations Manager Gerald Boyd, and the DOE Contracting Officer in Cincinnati, Ohio. These letters protested the proposal to move the management of the Grandfathered employees pension and benefits from Oak Ridge to the Portsmouth D&D Project. This effort to “save Tennessee jobs” and keep the management here in Oak Ridge was successful, and the language in the final Portsmouth contract was revised.

In June, AGRE representatives shared a table with CORRE at the Oak Ridge Secret City Festival. This gave AGRE an opportunity to talk with Grandfathered employees and retirees about AGRE objectives and activities.

In July, E-mails from the AGRE e-mail address (which is gfemployee@yahoo.com) were blocked by BJC management to prevent Grandfathered employees from receiving updates and meeting information at work. Apparently BJC realized they could not discriminate against AGRE and in August the block was removed.

Vision enhancements went into effect on July 1 for Grandfathered employees and retirees. BJC communicated these enhancements to employees on July 6, but they did not plan to announce this to the retirees until November in their Open Enrollment Packages. AGRE discussed this issue with BJC HR, and a notice was mailed out to retirees on September 8, 2009.

BJC Human Resources agreed to mail out brochures about joining AGRE and CORRE to all grandfathered retirees. A total of 757 envelopes were stuffed and stamped, then given to BJC to address and mail out. BJC also agreed to include these AGRE and CORRE brochures in future retirement packages. As a result of this mail-out, approximately 100 GF retirees joined CORRE and about 76 responded to AGRE.

BJC issued RFIs for medical provider considerations, which included vision and dental benefits for post-65 retirees. The companies who responded were United Health Care, Aetna, Cigna, and Blue Cross/Blue Shield. Unfortunately, Aetna was again selected as the medical provider, and no benefits for dental were included for the post-65 retirees. The only plus is that the rates do not increase for 2010 for retirees, although the rates for Y-12 and ORNL retirees are being REDUCED!

AGRE representatives developed an informational display which was placed at the Oak Ridge Public Library during the month of September. In October, the display was placed in the lobby of the Oak Ridge Enrichment Federal Credit Union. In November, it was moved to the Kingston Community Center and then to the Frank Strang Sr. Center in Knoxville in December.

AGRE representatives had a table at the BJC Health and Safety Fair on September 17, 2009 and obtained a total of 31 sign-ups.

An announcement about monthly AGRE meetings was made at the Annual Union Picnic at Roane County Park on September 19.

In early September, AGRE learned that the Benefits Employee Handbook, which is long overdue to be mailed to retirees, was sent to DOE for approval. Unfortunately, retirees still have not received their copies of the handbooks which are supposed to be issued every 5 years, per ERISA guidelines. The last time issued was around 1999.

In September, an AGRE presentation was made by Pete Peterson to the CORRE Board of Directors.

On November 2, AGRE representatives had a display in the lobby at the annual CORRE Meeting. About 250 were in attendance at this annual meeting. Dub Shults gave a good presentation entitled “An Up and Down Year,” which can be found on the CORRE web site (http://www.corre.info/).

In December, BJC Grandfathered post-65 retirees will get half of the Medicare Part D subsidy in a lump sum payment of $210.74 for a single and $421.48 for dual. This is the second year in a row that BJC has shared the subsidy with retirees.

AGRE representatives continue to discuss AGRE objectives and concerns with government representatives, both locally and in Washington, DC; with local DOE representatives; and with BJC Human Resources management.

AGRE Update -- November 2009

The next AGRE Monthly Meeting will be held on Thursday, December 3, at 6:00 p.m. at 133 Raleigh Road, Oak Ridge, TN.

CORRE held their annual meeting on November 2, and several local and state officials were present for this important meeting. AGRE had a display in the lobby and met with retirees prior to the meeting. Dub Shults, CORRE President, gave an informative presentation on the year's progress entitled "An Up and Down Year."

On November 5, BJC began open enrollment for medical and dental benefits and announced that the rates for retirees for 2010 are the same as this year. While no increase was good news, there continues to be concern because the grandfathered retiree medical rates are significantly higher than those at Y-12 and ORNL while benefits are similar:

Pre-65 GF Medical Rate for Dual - $470.45

Pre-65 Y-12/ORNL Medical Rate for Dual - $336.14

Post-65 GF Medical Rate for Dual - $551.12

Post-65 Y-12/ORNL Medical Rate for Dual - $300.00

Also included in the Open Enrollment packages this year was information about walk-in clinics. These clinics, found in several CVS and Walgreen drug stores, may be used rather than the emergency room for illnesses that are not urgent, at a much lower out-of-pocket expense to the retiree.

BJC has agreed to give new retirees the AGRE informational brochure in future retirement packages, along with a letter and information about CORRE.

AGRE representatives have met this month with representatives of our Congressmen and Senators in both Washington, DC and in Oak Ridge, TN. Meetings with DOE representatives are being planned in the near future.

AGRE has put together a display with information about Grandfathered employees and the organization. This display was at the Oak Ridge Library during the month of September, then it was moved to the Enrichment Federal Credit Union in Oak Ridge in October. The display can be seen at the Kingston Community Center during the month of November.

AGRE Update - October 2009

The CORRE Annual Meeting will be held on Monday, November 2, at 2:00 p.m. at the Heritage Fellowship Church in Oak Ridge. All retirees are urged to attend this important annual meeting. Be sure to look for the AGRE display in the lobby!

The next AGRE Monthly Meeting is Thursday, November 5, at 6:00 p.m. These monthly meetings are held on the first Thursday of each month at 133 Raleigh Road, Oak Ridge.

Several grandfathered employees stopped by to talk with AGRE representatives Teresa Riggs, Dwight Morrow, and Eva Graves at the BJC Health and Safety Day on September 17. Those who provided contact information will be included on future AGRE distributions.

Pete Peterson gave an AGRE presentation to the CORRE board members at their September monthly meeting. The presentation included details on the formation of AGRE, the primary objectives of the organization, and information on the grandfathered employee pension plan and health and welfare trust. Of particular interest to the CORRE Board members were the high medical premiums that BJC retirees are paying, in comparison to the retiree rates for the X-10 and Y-12 retirees.

BJC is reviewing responses from United Health Care, Aetna, Cigna, and Blue Cross/Blue Shield, the companies who responded to their Request for Information (RFI). A decision on the medical provider for 2010 should be announced in the near future.

AGRE Actions Committee members are continuing to meet with BJC Human Resources personnel and government officials on ongoing issues regarding grandfathered pension and benefits.

AGRE Update - September 2009

The next Monthly AGRE Meeting is Thursday, October 1, 2009 at 6:00 p.m., 133 Raleigh Road, Oak Ridge.

The Annual CORRE Meeting for retirees is Monday, November 2, 2009 at 2:00 p.m., Heritage Fellowship Church, 121 Illinois Avenue, Oak Ridge.

Mercer will be performing a "dependent eligibility audit" in the near future. Notices will be mailed out to employees and retirees which include a form that neds to be completed and returned. Audits of this nature typically show that 3-8% dependents are ineligible.

An AGRE display is at the Oak Ridge Public Library during the month of September. Information is provided about the AGRE organization and its objectives, who is represented, and when and where meetings are held. Upon entering the Library, turn left, then go straight to visit the display.

Concern is growing on the apparent lack of communication from BJC to the Grandfathered retirees. Benefit handbooks were distributed to employees a year ago--but it's been several years since retirees have had up-to-date handbooks. There are no web links or telephone numbers for Grandfathered retirees on the BJC public home page. Vision enhancements that went into effect on July 1 for eligible employees and pre-65 retirees were not communicated to the retirees, resulting in a loss of savings on eyecare products. (Update: VSP information was mailed out by BJC to retirees on 9/8/09.) Life insurance certificates, which were previously provided by MetLife, are not being given to retirees to file with other important papers.

BJC will be completing the evaluation of benefits information received from various companies and making a determination on who will be the benefits provider for 2010. The months of October and November are typically used for open enrollment announcements, information meetings, etc., in preparation for benefits that go into effect on January 1, 2010.

Special presentations are being discussed for future Monthly AGRE Meetings, held the first Thursday of each month. Topics may include financial planning, will preparation, estate planning, etc. Employees and retirees are encourage to send an e-mail to gfemployee@yahoo.com with topics they would be interested in learning about.

AGRE Update -- August 2009

The next AGRE Monthly Meeting is scheduled for Thursday, September 3, 6:00 p.m., at 133 Raleigh Road, Oak Ridge.

Good News! The gfemployee@yahoo.com e-mail address is no longer being blocked for BJC employees. Thanks to those of you who responded with your home e-mail address during the period that it was blocked. Electronic distribution lists are in the process of being updated.

On 8/4/09, a total of 719 envelopes were mailed to BJC retirees. The envelopes included a recruitment letter and contribution form from CORRE and a brochure from AGRE. To date, about 55 BJC retirees have joined CORRE and approximately 44 have responded to AGRE.

Effective 7/1/09, VSP Vision Care Plan Enhancements became effective for those currently enrolled in BJC's medical/vision plan. The enhancements have been communicated to the active employees, but pre-65 retirees do not yet have this information. The Eye Health Management Program, which focuses on the early treatment and management of both eye and related health conditions, will enhance the current coverage with value-added benefits such as Diabetic Eyecare Program, Laser VisionCare Program, and Low Vision Program. Contact lens wearers will benefit from the flexible plans and enhancement programs to the current Signature Plan. Greater discounts and a covered-in-full benefit for some of the most popular contact lenses provides more coverage than any other vision plan on the market today. These added benefits are at no cost to the company or employee/retiree. Questions related to the VSP Plan may be directed to BJC Benefits Administration at 865-241-1721, or to VSP at 800-877-7195 or visit their web site at http://www.vsp.com/.

BJC issued Requests for Information (RFIs) earlier this year for medical provider considerations. It is our understanding that this will include vision and dental benefits for post-65 retirees, benefits which currently end at age 65. Vender selection and information on rates (to go into effect 1/1/2010) is expected to be shared by late fall.

Pete Peterson will discuss AGRE issues and objectives at the monthly CORRE Board Meeting on Wednesday, September 16, 2 p.m. at the Oak Ridge Senior Center.

AGRE will have a display at the Oak Ridge Library during the month of September. The display cases are on the left, as you walk in the direction of the Children's Library section.

AGRE Update -- July 2009

Please make plans to attend the next AGRE Monthly Meeting on Thursday, August 6, at 6 p.m. in Oak Ridge (133 Raleigh Road).

BJC Grandfathered employees will no longer receive notices of AGRE meetings and updates at work because the AGRE e-mail address is now blocked. Please send your home e-mail address to gfemployee@yahoo.com in order to continue receiving AGRE information.

Thanks to everyone (all 88 of you!) who signed letters to keep the management of pension and benefits for Grandfathered employee in Oak Ridge. AGRE learned today that the language in the final Portsmouth D&D RFP, which was issued June 24, 2009, has been changed to reflect this.

Pete Peterson, the BJC representative on the CORRE Board of Directors, reported that the State of Tennessee legislature has issued House Joint Resolution No. 69 favoring passage of legislation to improve retirement benefits for ...these men and women of the Oak Ridge prime contractors, including those of the present contractors UT Battelle, B&W Y-12, Wackenhut, and Bechtel Jacobs..., signed by Governor Phil Bredesen on June 25, 2009. This resolution will be distributed via e-mail in the near future to Grandfathered retirees and employees with additional information on what happens next.

AGRE Update -- June 2009

Please note that the next AGRE Monthly Meeting will be on Thursday, July 9, at 6 p.m. This is a change due to the July 4th holiday week.

AGRE apologizes for any inconvenience at the June 4 monthly meeting when the AGRE Actions Committee was meeting with BJC personnel. In the future, meetings with BJC personnel will not be scheduled on the same night as the monthly meeting.

John Steward and Dennis Pennington traveled to Washington, DC in May. They met with Inez Threy, Lincoln Davis, Zach Wamp’s aide, Bob Corker’s aide, and Tom Craig of Lamar Alexander’s office to discuss moving the management of our pension and benefits to Y-12, removal of the pension cap, a reduced spouse option of 2%, and the cost savings that can be realized. While they listened and understood, no support is being offered.

On May 30, 2009, a letter was sent to Gerald Boyd, Manager of DOE Oak Ridge Operations, requesting protocol to conduct a peaceful rally on the grounds of the Federal Office Building. The rally would be held to bring attention to inequities in the pension and health benefits of the Grandfathered retirees and employees and also due to the intent of DOE (Cincinnati, OH) to further separate our benefits from Oak Ridge by awarding the management of pension and benefits as part of the Portsmouth D&D Project in Ohio. We have repeatedly demonstrated that there is a significant cost savings in consolidating our benefits in Oak Ridge and the advantage of saving Tennessee jobs. On June 4, AGRE received a phone call from Jim Thompson (DOE) who indicated he would be sending AGRE a form to complete.

BJC will be sending out letters to Grandfathered retirees who, this year, may be paying less federal income tax. While retirees are enjoying a bigger take-home pension, there is a possibility that they could end up paying it back at income tax time.

Approximately 100 retirees have been sending a check to BJC each month to pay their medical premiums. In the past, these checks were not deposited immediately. Notices are being mailed by BJC to retirees that effective July 1 these checks will be electronically deposited the day they are received.

Roz Torrence, BJC Human Resources Benefits Manager, attended the AGRE Actions Committee Meeting on Thursday, June 4, to discuss the recently issued Annual Funding Notice for BJC Pension Plan for Grandfathered Employees. Other BJC representatives were Mary Ellen Branan and Mary Beth Blair. The Annual Funding Notice (AFN) replaces the Summary Annual Report (SAR) which has been issued in previous years. Key differences in the new notice, for which DOL provided the model, include a three-year financial history, disclosure of funding, and asset allocation strategy. The funded percentage for 2008 was 103.51%, significantly higher than the 63% funding level reported at the January AGRE meeting. The funding level would be lower than 103.51% (possibly around 84%) if the way it is being reported had not changed. The 2008 funded percentage uses a specific set of assumptions and methods as outlined under the Pension Protection Act which differ from the assumptions and methods prior to 2008. Roz stated that BJC has been making contributions to the pension plan since 2004 and that $15.5M was deposited into the plan this year. DOE reimburses BJC for these contributions and is required by law to put in minimum contributions. Our pension plan is only open to Grandfathered employees, but in the past USEC did not transfer pension assets for several Paducah and Portsmouth employees who met the Grandfather definition and became part of the pension plan. This has had a negative effect on the funding levels, as well as a relatively early retirement age. There are 2,114 participants in this plan, and the average age of a BJC retiree is 56 years. The mortality age is 82 for women and 78 for men. The Benefits Investment Committee (BIC) meets quarterly to review the market, returns, and forecasts. Representatives from both Bechtel and Jacobs are on the BIC, as well as representatives from Portsmouth and Paducah. The "plan year" is January 1 through December 31. BJC sends the AFN first to DOL for review, then it is sent to participants by April 30. BJC has a budget to the year 2016 for clean-up work to be completed, and funds are allocated in this budget to fund the pension plan through 2016, if needed. The pension plan is important to DOE-OR and is guaranteed by the Pension Benefit Guaranty Corporation, a federal agency. This was an important meeting between AGRE and BJC, and we hope to continue these open communications in the future.

On June 10, 2009, form letters were sent to all Grandfathered employees and retirees on our distribution to complete and mail to our senators, congressmen, governor, mayors, and DOE representatives entitled “Saving Tennessee Jobs.” We are requesting they take action to prevent the management of our pension and benefits from being moved from Tennessee to Ohio. This year AGRE has been meeting with HR representatives in an effort to keep our benefits in Oak Ridge when (or before) the BJC contract ends on December 31, 2011. B&W Y-12 currently manages pension and benefits for 23,873 participants. Keeping the benefits of the 2,114 Grandfathered personnel in Oak Ridge will provide significant cost savings to employees and taxpayers.

AGRE participated in the Secret City Festival in Oak Ridge on June 19 and 20, sharing a tent with CORRE representatives. Volunteers were available to discuss AGRE activities and encourage other grandfathered retirees and employees to join.

AGRE Update -- May 2009

The next AGRE Monthly Meeting will be on Thursday, June 4, at 6:00 p.m. at 133 Raleigh Road, Oak Ridge.

AGRE is looking for volunteers to share a table with CORRE at the Secret City Festival on June 19-20 and hand out brochures about AGRE activities. If interested in helping, please send an e-mail to gfemployee@yahoo.com indicating which day, Friday or Saturday, you would be available to help.

John Steward and Dennis Pennington were in Washington DC the weekend of May 9 and spoke with government officials about the issues of moving the management of pension and benefits for Grandfathered retirees and employees to Y-12, removal of the pension cap, a spouse option of 2%, and the cost savings that can be realized. While the government representatives listened and understood, no support on these issues appears to be forthcoming.

The AGRE Actions Committee is preparing letters to be sent to DOE and state and local government officials regarding a Draft Request for Proposal (RFP) entitled Portsmouth D&D Project. The Draft RFP, which was issued on January 15, 2009, has language that "the Contractor shall become the lead sponsor of the BJC MEPP, the BJC MEWA, and other existing benefit plans...for Grandfathered Employees and retired plan participants, with primary responsibility for management and administration of these plans." For the past 18 months, AGRE has been working to move the management of our pension and benefits to Y-12, which is currently managing similar programs for over 23,000 participants. This Draft RFP indicates the management of pension and benefits for the 2,114 Grandfathered employees and retirees will be located Ohio! The Draft RFP can be found at http://www.doe.gov/, then enter Portsmouth RFP in the seach window.

All Grandfathered retirees and employees are invited to attend the AGRE Monthly Meetings, held the first Thursday of each month. Please do not wait until you are retired to realize the importance of these issues.

AGRE Update March 2009

The monthly AGRE meeting is still being held at the union hall on Raleigh Road in Oak Ridge. The meeting is being held the first Thursday of the month at 6:00 p.m. Everyone is encouraged to attend the meetings, it is for anyone who is a grandfathered current employee or retiree.

The month of March has been filled with meetings at Bechtel Jacobs HR and the Y-12 benefits office. Several people from the AGRE committee have talked with each entity regarding the change from BJC(Aetna) insurance to Y-12(Cigna) insurance. The cost savings for the company and the retiree's will be tremendous. Cigna representatives have been contacted and everything seems to be set that they could take over without many problems. The discussions have also included adding dental and vision for the post-65 people. BJC HR representatives still have questions about the transition and we hope these will work out soon.

We all need to stay in contact with our U.S. Senators and Representatives in Washington. These include: Lamar Alexander, Bob Corker and Lincoln Davis. Zack Wamp is also another contact but he is concentrating more on his run for Governor and Davis has picked up some of his work.

We all realize this seems to be taking a long time and wonder if it is all worth the hassle. Please remember at the end of 2007 our retiree's medical insurance would have doubled if these meetings had not transpired to stop this. We know nothing happens overnight in situations as this, please be patient and help out as much as you can.

In a prior update, there was a mention of our pension being funded only 63% by the company. The other amount is being funded by DOE to 80%.

The AGRE Committee

AGRE Update--February 2009

The next AGRE meeting will be on March 5, 2009 at 6 p.m. at 133 Raleigh Road. All grandfathered retirees and employees are invited and encouraged to attend. These meetings could affect your future and are very important.

During the month of February, some members of the AGRE committee have met with Y-12 Benefit Plans and Bechtel Jacobs Benefit Plans regarding the transfer of the medical insurance to Y-12. The meetings have been good and informative. Y-12 Benefit Plans still handles X-10 benefits and has no problem with handling ours also. Bechtel Jacobs Benefits appear to be in agreement with this transfer. This would still be pending upon DOE agreeing with this transfer. The insurance would be with CIGNA and would be a cost savings to the company and the employees. CIGNA has a representative in the area with whom the committee has met and he also agreed with our proposal.

We hope to have more information within the next few weeks.

AGRE Update -- January 2009

Please make plans to attend the monthly meeting of AGRE (Alliance of Grandfathered Retirees and Employees) on Thursday, February 5, at 6:00 p.m. The meeting will be held at 133 Raleigh Road, Oak Ridge, TN.

January was a very busy month as the AGRE Actions Committee continued to work on benefit and pension issues for Grandfathered retirees and employees.

AGRE has learned that the funding status of the BJC Pension Plan for Grandfathered Employees has been affected by the dramatic downturn in the economy and has decreased to 63% . The plan has historically maintained a funded status near 100%. While this level is alarming, BJC has indicated their intent to contribute approximately $15M to the pension fund in 2009, in accordance with ERISA funding laws. These contributions are reimbursed through contracts with the Department of Energy. Because of the magnitude of the equity losses in the market, BJC asked its actuary to approximate the impact on the plan's funding level and future contributions.

AGRE representatives Teresa Riggs, Alan McAmis, Floyd Oliver, and Bruce Lawson and CORRE liaison Pete Peterson met with BJC Human Resources benefits manager Roz Torrence on January 15, 2009. Although AGRE did not receive a response to either of the two letters mailed to BJC President Paul Divjak, BJC appears open to meeting with AGRE representatives and working to resolve concerns. BJC, whose contract end date is December 2011, is also open to the proposal to move the benefits administration to B&W Y-12. AGRE would like to establish monthly meetings with BJC to work together on these issues.

AGRE is meeting with and requesting the support of our government officials in changing our medical insurance provider from Aetna to CIGNA and moving our benefits administration from BJC to B&W Y-12. This would ensure that jobs stay in Tennessee and not move out of state. CIGNA (Chattanooga office) personnel would handle our claims. More importantly, the tax payers and federal government would enjoy a cost savings of more than $6M over the first three years, and BJC employees and retirees would save money on their medical premiums with no loss of benefits. Meetings held to date:

• On January 20, 2009, AGRE representatives Teresa Riggs, Alan McAmis, and Bobby Collier met with Gina McMahan of Congressman Zach Wamp's office in Oak Ridge.
• On January 22, 2009, AGRE representatives Teresa Riggs and Alan McAmis met with David Leaverton of Senator Bob Corker's office in Knoxville.

Larry Long and Teresa Riggs met with the B&W Y-12 and Pantex Sites Human Resource Director, Donna Hampton, and Connie Pruett, Benefits Administration, about moving Benefits Administration from BJC to B&W Y-12. Work efforts toward this issue are on-going, and another meeting is planned next month.

Both AGRE and CORRE members recently expressed concerns to Senator Bob Corker's office that the current DOE policy regarding retired contractors does not adequately adjust for inflation and cost of living increases. As a result, Senator Corker asked the following question at the nomination hearing for Dr. Chu, the new Secretary of Energy: Will you conduct a careful review of the benefit plans offered to retirees by the Oak Ridge DOE contractors, as well as those provided by other DOE contractors at other facilities and tell us if you believe there are inequities in those plans? If so, should they be addressed by the Department?
Secretary Chu responded: If confirmed I would certainly be willing to request a review of the benefit plans provided to retirees at Oak Ridge and other DOE sites, and to examine the issue closely. As you are aware, this is not an issue that I have been previously involved in beyond the Berkely Laboratory, so I do not currently have a view of whether there are inequities in the Oak Ridge plans. I would look foward to discussing the issue further with you after conducting a review.

About 130 postcards were mailed to GF retirees and employees inviting them to the monthly AGRE meetings and providing the web link to the AGRE blog. It is very important that Grandfathered retirees and employees provide us with their home e-mail addresses for future communications. Please send this information to gfemployee@yahoo.com.

What YOU Can DO!

Attend monthly AGRE meetings, scheduled on the first Thursday of each month!

Please note that due to the New Year's holiday, the January AGRE Meeting will be held on the second Thursday, January 8, at 6:00 p.m., at 133 Raleigh Road, Oak Ridge.

Send letters and e-mails to your government representatives!

Examples of how to state these issues will be sent to everyone on the AGRE e-mail distribution, along with mailing addresses and web sites of our government representatives.

The Squeaky Wheel Gets the Grease!

“I hate to be a kicker (complainer), I always long for peace, but the wheel that does the squeaking is the one that gets the grease” is a famous quote attributed to the American humorist Josh Billings (1818–1885) in his poem “The Kicker” describing his frustration with being polite and not getting his way with authorities. If you’re persistent and make a lot of noise, those in high places will get your message. The most effective way to make your voice heard is to join together for a common cause, gaining as many people and as much support as possible. People who care about issues (i.e., medical benefits, insurance rates, pension fund stability, etc.) must express their ideas and get involved by taking action to bring about change.

Send your e-mail address to gfemployee@yahoo.com!

E-mail is our primary means of communicating due to limited operating funds. In an attempt to contact those who may not have e-mail addresses, over 130 postcards were mailed to Grandfathered employees/retirees this week, notifying them of the monthly meetings and this web site (http://www.gfemployees.blogspot.com/).

Summary of Current AGRE Requests to BJC and DOE:

• Move the administration and management of the Health and Welfare Trust from BJC to B&W Y-12, to be managed under the Oak Ridge Benefits and Investments Trust (ORBIT).
• Move the administration and management of the BJC Pension Plan for Grandfathered Employees to B&W Y-12 to be managed as a separate Trust under the Master Trust of the Oak Ridge Benefits and Investments Trust (ORBIT).
• Grant equity to Grandfathered employees and retirees by removing the 30-year cap from the retirement calculation.
• Grant equity to Grandfathered employees and retirees by adding the spouse option limit of 2 percent into the retirement calculation.
• Reimburse Grandfathered employees and retirees the overcharged (surplus) medical premiums in the Health and Welfare Trust.
• Change medical/dental/prescription coverage providers from Aetna to CIGNA, thereby realizing an estimated three-year cost savings of over $6 million, in addition to providing local jobs in Tennessee. (CIGNA is located in Chattanooga, TN)
• Take necessary action to transfer pension funds from USEC for those approximately 200-400 former USEC employees who entered the plan for Grandfathered employees without their pension assets transferring with them.

December AGRE Meeting

Items of interest from the December monthly AGRE meeting on 12/4/08:

Post-65 Retiree Drug Subsidy - BJC sent out letters to post-65 retirees about their December 2008 medical premiums being reduced by $60.36 for single coverage and by $121.68 for dual coverage as a reconcilliation payment related to the 2006 Retiree Drug Subsidy. The subsidy applies to retirees eligible for, but not enrolled in, a Medicare Part D plan. This reimbursement to the post-65 retirees from BJC is appreciated.

AGRE Letter to BJC - BJC has not yet responded to our letter dated 8/27/08, which was sent to Paul Divjak, BJC President/GM, and included a list of our concerns and issues. A follow-up letter will be sent to BJC in the near future.

AGRE Letter to DOE - DOE's Gerald Boyd replied to the AGRE letter dated 9/4/08. His letter, dated 9/26/08, was read at the October and November monthly meetings. AGRE has prepared a response to Mr. Boyd's letter, which is undergoing some minor changes before being mailed.

AGRE Letters to Representatives - Just prior to the economic crisis, AGRE mailed letters to Senator Lamar Alexander, Senator Bob Corker, Congressman Zack Wamp, Congressman John Duncan, and Congressman Lincoln Davis. Attached to these letters were 48 pages of petitions with 659 signatures. AGRE has not received a response to these letters which were mailed on 9/4/08 and has followed up with a second letter to each official requesting a written response. (The follow-up letters were mailed December 27. )

New Subcommittees - The AGRE Actions Committee meets bi-monthly at 5 p.m. on the 1st and 3rd Thursdays of each month. In order to provide back-up coverage and better focus on the growing list of issues and concerns, subcommittees are being formed. These will be better defined in the near future as additional members and responsibilities are identified:

AGRE Co-Chairs for 2009 - Teresa Riggs and John Steward
Health and Welfare Subcommittee - Teresa Riggs, Diane Watson, Alan McAmis
Financial Analysis Subcommittee - Alan McAmis, Bill Woods
Political Subcommittee - Bobby Collier
Communications and Records Subcommittee - Sandy Keen, Dwight Morrow, Loretta Walker
AGRE/CORRE Liaison - Pete Peterson
AGRE/USW Liaison - John Steward
Paducah Liaisons - John Asbell and TBD
Portsmouth Liaisons - Joyce Hopper and TBD

Links to Items of Interest

Please make plans to attend the AGRE Monthly Meeting on Thursday, December 4, at 6:00 p.m. at 133 Raleigh Road, Oak Ridge, TN.

Links to Items of Interest

The National Retiree Legislative Network (NRLN) web site:
http://www.nrln.org
By clicking on this web link and after entering your zip code, you can send an e-mail entitled "Pension Plan Assets Must Be Protected" to Senators, Representatives...even the President.

The Coalition of Oak Ridge Retired Employees (CORRE) web site:
http://www.corre.info/index.htm
See Pension Request No. 3 which references BJC and Wackenhut pension plans:
http://www.corre.info/Pension_Needs/pension_needs.htm
CORRE 2008 Position Paper:
http://www.corre.info/Pension_Needs/position_paper.htm
CORRE Board Meeting Minutes:
http://www.corre.info/CORREBusiness/MinutesTable.html

Frank Munger's Atomic City Underground website:
http://blogs.knoxnews.com/knx/munger/
About the blog -- Frank Munger will be covering the Dept. of Energy's Oak Ridge facilities and other things nuclear. The blog will include random thoughts and opinions, behind-the-scenes tidbits, and expanded coverage and analysis of Oak Ridge news. Example:
The Bechtel Jacobs pension picture
As of Sept. 30, 2008, the total assets in the BJC pension fund for grandfathered employees were $219 million, according to info provided by Bechtel Jacobs.
"The pension plan is not fully funded at this time," Bechtel Jacobs said, but declined to put a percentage on it. Company spokesman Dennis Hill said the company was meeting its requirements.
"For a multi-employer plan, the funding regulations require a minimum funding level of 80%," BJC said in a statement. "As required under federal law, all multi-employer plans must provide an annual funding notice to the participants of the pension plant, which will be done in the next few weeks."
There are 2,114 participants or beneficiaries covered by the plan.
In a statement, BJC said, "The pension fund is managed by various fund managers, with diverse investment strategies. The Bechtel Jacobs Company Benefits and Investment Committee works with the investment consultant, Mercer, in selecting fund managers whose investment strategies align with the Pension Plan's investment policy objectives. The Committee monitors the fund managers' performance."
The company added: "As with most defined benefit and defined contribution plans, the downturn in the market has impacted the pension plan. By having a diversified investment portfolio with conservative allocations, the BJC Pension Plan has not experienced the extreme negative impact that some other plans may have experienced."
Posted by Frank Munger on October 24, 2008 at 5:27 PM

PENSION CONCERNS

Below is an article by Mary Williams Walsh of The New York Times:

After Losses, Pensions Ask For a Change
By MARY WILLIAMS WALSH
Stung by outsize investment losses, some of the nation’s biggest companies are pushing Congress to roll back rules requiring them to put more money into their pension funds, just two years after President Bush signed a law meant to strengthen the pension system.
The total value of company pension funds is thought to have fallen by more than $250 billion since last winter. With cash now in short supply for companies, they are asking Congress to excuse them from having to replenish the required amounts.
Lawmakers from both parties seem receptive to the idea, and there was talk of adding a pension relief provision to the broad fiscal stimulus package Congress considered for this week’s lame-duck session.
Late Wednesday, several senators announced that they had reached agreement on a bill that would provide pension relief. Even if it is not completed this week, some Congressional leaders say they will seek support for a pension relief bill in January.
“Congress needs to make the funding less volatile,” said Representative Earl Pomeroy, Democrat of North Dakota, who has long been outspoken on pension issues. “I believe that taking this step will save thousands of jobs without costing the Treasury anything.”
The risk of giving companies a break on their required contributions is that some troubled companies may go bankrupt anyway, and the federal government will have to take over their ailing plans. Though the government insures traditional pensions, its insurance is limited. And when it takes over a plan, people can lose benefits.
Pension relief for companies would also expose the Pension Benefit Guaranty Corporation to greater risk. The federal guarantor is already operating at a deficit.
Companies do not dispute the risks, but they say that when Congress tightened the pension rules it did not take this year’s unprecedented market turmoil into account. If companies are now required to put new money into their pension funds, they say, they will not have the cash needed for business investments and payrolls.
“At a time when companies desperately need cash to keep their businesses afloat, the new funding rules will require huge, countercyclical contributions to their pension plans,” a group of more than 300 companies, trade associations, consulting firms and labor unions wrote in a letter sent last week to the senior members of the House and Senate committees that deal with workplace matters.
On Wednesday four senators announced a measure for consideration by the full Senate on Thursday that would give companies more time to make up investment losses and sort out other problems. The bill was backed by Senators Max Baucus, Democrat of Montana; Charles E. Grassley, Republican of Iowa; Edward M. Kennedy, Democrat of Massachusetts; and Michael Enzi, Republican of Wyoming.
The Pension Protection Act of 2006 was enacted in response to a string of big corporate bankruptcies and pension failures at the beginning of this decade. Federal law requires companies to put money into their pension plans on a regular schedule, but the bankruptcies revealed gaping loopholes that were allowing companies to go for years without adding money.
The 2006 amendments were intended to close some of the loopholes and make the pension system less risky. Until this year’s market disaster, most company pension funds had been making great gains.
In 2002, the last low point for most pension funds, America ’s 500 biggest companies reported an aggregate pension deficit of more than $200 billion, according to David Zion, an analyst at Credit Suisse who specializes in decoding pension numbers. Thanks to company contributions and strong investment gains, the group reported a pension surplus of $60 billion at the end of 2007.
Data including this year’s losses will not be available until the next batch of annual reports, but Mr. Zion estimates that this same group has lost almost $265 billion since the beginning of the year. Results are likely to vary from one company to another because pension investment strategies can vary greatly. But Mr. Zion said he thought that of these 500 pension funds, more than 200 were now less than 80 percent funded, meaning they have less than 80 cents for every dollar of benefits promised.
The so-called funded ratio matters greatly because the new rules call for companies to bring their plans up to 100 percent funding in seven years, starting this year. The phase-in schedule expects them to be at least 92 percent funded this year, at least 94 percent funded next year and so on.
Lawmakers wanted to reduce the Pension Benefit Guaranty Corporation’s exposure to the stock market, so they wrote the law to encourage conservative investing. The law does not specifically ban volatile pension investments, but if a company suffers losses big enough to throw it off the seven-year path to full funding, then it no longer gets seven years — it has to achieve 100 percent funding right away.
Some companies have started shifting away from equities, which can swing widely, but many others have not. Now those with mostly stocks in their pension funds seem likely to have tripped the penalty switch, by falling below this year’s required 92 percent funded ratio. As a result they will now have to shoot for 100 percent funding.
The letter said the required contributions for next year are rising sharply. It cited one unnamed Florida company that contributed $673,000 this year and will be required to put in more than $15 million in 2009.
Many of the companies now calling for relief have sprawling, mature pension funds with obligations so big they can dominate the companies’ own financial performance. Mr. Zion has identified nine big companies whose pension obligations are more than five times the size of their single largest liability on their balance sheets; six have signed the letter: the NCR Corporation, I.B.M., Rockwell Collins, the ITT Corporation, Northrop Grumman and the Pactiv Corporation.
The sponsor of America ’s biggest corporate pension fund, General Motors, did not sign the letter. But Ford Motor and Chrysler did.
The A.F.L.-C.I.O. has not yet taken a public stand on pension relief, but consumer advocates are expressing guarded support.
“If they ask for something more than temporary, it’s not going to happen quickly,” said Norman Stein, a professor at the University of Alabama who specializes in pension issues.
The Pension Rights Center , an advocacy group in Washington , said the financial crisis had clearly shown that defined-benefit pensions were superior to 401(k) plans, which make participants bear all the market risk. The center said it would make sense to encourage companies to keep offering pensions by giving them a break on their contributions — but only if they agreed not to freeze their plans.
In a pension freeze, employees keep the benefits they have earned, but stop building up new benefits with additional years of work. Even a frozen pension fund still needs contributions, albeit smaller ones, and the companies seeking relief include those with both frozen and active plans.
Companies urging relief that have already frozen one or more of their pension plans include 3M, Alcoa, DuPont, I.B.M., Nortel, Northrop Grumman, Verizon and Whirlpool, among others.
The issue would be a flashpoint, Professor Stein predicted. “This is completely inappropriate for frozen plans,” he said. “I can’t see any reason at all to give relief to frozen plans.”

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.

AGRE Q&As

Q. What is AGRE?
A. AGRE is the acronym for the Alliance of Grandfathered Retirees and Employees.

Q. Why was AGRE formed?
A. AGRE was formed by a group of concerned retirees and employees when Bechtel Jacobs Company (BJC) attempted to double the medical premiums for pre-age 65 retirees in December 2007. For example, the premium for a pre-age 65 couple would have increased from $406.25 to $812.50 a month.

Q. When are AGRE meetings held?
A. AGRE meetings are held the first Thursday of each month at 6:00 p.m. at the USW Union Hall, located at 133 Raleigh Road in Oak Ridge.

Q. What is the purpose of AGRE?
A. The primary objective of AGRE is to obtain and maintain pension and medical benefits equivalent to those received by retirees at Y-12, ORNL, and the pre-1998 K-25 retirees. You can reference the AGRE Position Paper on the blog below.

Q. How can I receive information and updates on AGRE activities?
A. Communications are currently via e-mail. To be included on distribution, send your e-mail address to: gfemployee@yahoo.com
Also re-visit this blog for updates: www.gfemployees.blogspot.com

Q. Can anyone join AGRE?
A. All Grandfathered retirees and employees are invited to join. Simply send your contact information (name, address, phone number, and e-mail address) to: gfemployee@yahoo.com

Q. How many Grandfathered retirees and employees are there?
A. As of January 1, 2008, total participants were 2,114. This includes 857 active employees, 544 who have terminated with deferred benefits, and 713 retirees and beneficiaries. Of the 857 active employees, 590 are at Oak Ridge, 148 at Portsmouth, and 119 at Paducah.

Q. Since meetings are held at the Union Hall, is AGRE only for union employees?
A. No, AGRE represents Grandfathered hourly and salaried employees and all Grandfathered retirees.

Q. Who makes up the AGRE Actions Committee?
A. Members of the AGRE Actions Committee include a mix of retired and active employees with experience in various organizations.

Q. How do I know if I am “Grandfathered?”
A. Grandfathered employees are a DOE-designated group of workers who have met certain definition requirements. These employees from K-25, ORNL,and Y-12 in Oak Ridge; Paducah (KY); and Portsmouth (OH) began to transition to BJC on April 1, 1998, the date BJC began managing the M&I Contract for the Department of Energy. BJC, with DOE approval, has modified the definition over the past 10 years. The Grandfathered employee definition will be posted on the AGRE blog in the near future.

Q. How are CORRE and AGRE related?
A. AGRE is an approved affiliate with the Coalition of Oak Ridge Retired Employees (CORRE), a labor association within the meaning of Section 501(C)(5) of the Internal Revenue Code of 1986. AGRE addresses those pension and benefit issues specific for the 2,114 Grandfathered retirees and employees.

Q. Who do I contact if I have a question?
A. Send an e-mail to gfemployee@yahoo.com and a response will be prepared and sent directly to you.

Q. What can I do to help?
A. Spread the word about AGRE to your Grandfathered friends and neighbors, write your government representatives with your concerns about medical benefits and pension, attend and participate in the AGRE monthly meetings, and support your AGRE Actions Committee members.

Update on Recent AGRE Activities

Earlier this year, letters of introduction were sent to DOE and Bechtel Jacobs Company (BJC) to notify them that an alliance, known as the Alliance of Grandfathered Retirees and Employees (AGRE), had been formed. Attached to each letter was the Position Paper outlining our requests and concerns. AGRE also asked that meetings be scheduled to establish open communications on these issues.

On March 25, 2008, AGRE representatives had their first meeting with Mr. Paul H. Divjak, President and General manager of BJC; Kelli Schifferer, BJC HR Manager; and Roz Torrence, BJC Benefits Representative.

On April 21, 2008, AGRE representatives met with Lisa Carter, DOE HR Team Leader, and Patricia Howse-Smith, DOE HR Director.

On May 22, 2008, a petition was sent to folks on the AGRE distribution list (Tennessee only), asking them to obtain as many signatures as possible. These signed petitions may be delivered to the USW union hall or mailed to AGRE at 133 Raleigh Road, Oak Ridge, TN 37830. Once collected, these petitions will be hand-delivered to our government officials for their assistance in obtaining the following changes from DOE and its Contractors for maintaining pension and medical benefits equivalent to those received by retirees at ORNL and Y-12:

1. Include BJC Retiree Medical Benefits with those of ORNL and Y-12 retirees;
2. Have the BJC pension fund managed by Oak Ridge, together with the pension funds for ORNL and Y-12 retirees;
3. Have the 30-year cap removed and the spouse option limit of 2% added to the BJC pension plan, making BJC benefits the same as ORNL and Y-12 retirees; and
4. Have reimbursement for surplus monies refunded to BJC Health and Welfare Trust (surplus medical premiums).

AGRE is currently planning to participate in the Secret City Festival in Oak Ridge on June 20-21, 2008. Brochures on AGRE objectives will be available for distribution. Grandfathered employees and retirees attending the festival will also have an opportunity to join AGRE.

The next monthly AGRE meeting is scheduled for Thursday, June 1, 2008, at 6:00 p.m. at the USW Union Hall in Oak Ridge, TN.