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