Comments on: BJC Pension Fund Management http://blog.corre.info/2007/11/28/bjc-pension-fund-management/ --discussing pensions and benefits of Oak Ridge retired employees Sat, 05 Jul 2008 02:54:57 +0000 http://wordpress.org/?v=2.5.1 By: Al Brooks http://blog.corre.info/2007/11/28/bjc-pension-fund-management/#comment-70 Al Brooks Fri, 30 Nov 2007 17:40:05 +0000 http://blog.corre.info/2007/11/28/bjc-pension-fund-management/#comment-70 Larry Long makes some good comments but he has overlooked one thing: DOE/BJC is solving the problem, i.e., Protect the DOE budget against the rising cost of health care benefits by passing the responsibility on to the individual. Likewise for pension benefits albeit these cost are not rising as fast. Pension benefits can be controlled by freezing them on the reirement date, i.e. no improvements to compensate for inflation. Obviously , retiree morale is not a consideration. (You saved the world but what have you done for me lately?) This has two fallacies: 1) The employees are to damn dumb to realize that they will soon be affected negatively, and 2) retirees won’t tell potential new hires the truth. Neither of these effects will make a positive contribution to staff quality. The award fee contract is a good vehicle for doing this: DOE sets the goal and BJC reaches the goal or suffers in their award fee. This is clearly stated in the contract. When BJC sees its image being tarnished then they like Union Carbide will no longer bid on the contracts although it is clear that Roger Hibbs foresaw the problems and pre-empted tem. As for switching contractors, they all have the same above motivation and the more things change the more they will stay the same. Have faith! DOE is not GOD. They get their money from Congress who needs our votes (or perhaps the Devil). Al Brooks Larry Long makes some good comments but he has overlooked one thing: DOE/BJC is solving the problem, i.e., Protect the DOE budget against the rising cost of health care benefits by passing the responsibility on to the individual. Likewise for pension benefits albeit these cost are not rising as fast. Pension benefits can be controlled by freezing them on the reirement date, i.e. no improvements to compensate for inflation. Obviously , retiree morale is not a consideration. (You saved the world but what have you done for me lately?)

This has two fallacies: 1) The employees are to damn dumb to realize that they will soon be affected negatively, and 2) retirees won’t tell potential new hires the truth. Neither of these effects will make a positive contribution to staff quality.

The award fee contract is a good vehicle for doing this: DOE sets the goal and BJC reaches the goal or suffers in their award fee. This is clearly stated in the contract. When BJC sees its image being tarnished then they like Union Carbide will no longer bid on the contracts although it is clear that Roger Hibbs foresaw the problems and pre-empted tem.

As for switching contractors, they all have the same above motivation and the more things change the more they will stay the same.

Have faith! DOE is not GOD. They get their money from Congress who needs our votes (or perhaps the Devil).

Al Brooks

]]>