CORRE Blog

Alfred Brooks suggested I post this for your information.

  The HJR 1006 resolution urging the TN Legislature and others to support the CORRE pension plans can be found at : http://www.legislature.state.tn.us/bills/currentga/BILL/HJR1006.pdf

Bob Henderson provides below a detailed memo regarding Representative Davis' recent visit to Harriman. -The Editor

On Wednesday, March 26th, Congressman Lincoln Davis, Representative of the 4th District held a "Town Hall" meeting in Harriman to hear from his constituents in Roane County.

There was a very large turnout at the Utopia Cafe. I'd estimate there were more than 150 persons in attendance to talk about a variety of concerns. Tom Lemons, a CORRE board member, was there as was former CORRE board member Bill Wilcox. There were a number of other Oak Ridge retirees in attendance, but I didn't recognize any of them.

The first comment made, after some brief intro comments by Rep. Davis was by Frank Williams, Jr. of Kingston who said he had retired in 1984 after 37 years of service at the X-10 site. He mentioned that he had been married 62 years. Frank asked Rep. Davis to help get something done about the pensions for OR retirees. He said the increasing costs of medicine,food and gas, in particular, was really making those on pensions suffer. Frank mentioned that he was a member of CORRE. In response to Williams' remarks, Hal Butler of Kingston told Rep. Davis that he (Butler) had written a letter to the editor of the Roane County News that was published in the Wednesday, March 26th edition of the paper about CORRE: Pension hike long overdue.

The mayors of Oak Ridge and Roane and Anderson Counties sent a letter to U.S. Sen. Lamar Alexander, asking for his help in getting better benefits for CORRE retirees.

Oak Ridge mayor Tom Beehan; Rex Lynch, Anderson County mayor; and Mike Farmer, mayor of Roane County jointly wrote and signed the letter.

In part it said:

"Contractor employees in Oak ridge have had for many years an inferior retirement plan when compared to others within the Department of Energy complex. It is our understanding that many retirees have now lost over 50 percent of the value of their pension benefits and are seeking an equitable adjustment. In particular, the retirees are requesting: (a) pension adjustments for all retirees that restore 75 percent of buying power lost due to inflation, (b) the same 2 percent flat-rate spousal option offered to employees retiring after June 2004 and (c) that the DOE contractors regularly review and adjust pension values for all retirees in the future in order to prevent a recurrence of the present situation. These are fair and reasonable requests that could be funded by the assets of the Pension Trust Fund.

"Our concern is for the welfare of the nearly 12,000 retirees from DOE contractors living in East Tennessee, particularly the 5,350 constituents who reside in the two counties of Anderson and Roane."

Keith Kibbe writes: 

Retirees have for a number of years enjoyed the support of Congressman Wamp.  In fact, Congressman Wamp has stated recently that he anticipates that his seniority and influence will increase in the House of Representatives for the next Congress and that he intends to openly confront DOE about the need  for pension adjustments  for Oak Ridge retirees.   Fortunately, over the last year CORRE has succeeded in also obtaining the support of Senator Alexander.   In various of his Town Hall meetings last October, Senator Alexander openly stated that he is on our side but he also pointed out that it is a difficult problem to solve because people on the other side of the issue tell him that they do not agree with CORRE "on the numbers".   They claim the pension adjustments would weaken the retirement fund.  CORRE knows this is not the case.    Senator Alexander and his staff are currently taking a close look into the situation, seeking ways to make the adjustments happen.   CORRE, for its part, is assisting by clarifying and simplifying the math associated with the adjustments being sought.  CORRE is providing the Senator, and the local Contractor officials, a simplified table that will show the % pension increase CORRE is seeking for each year of retirement.  The longer a person has been retired, the more the inflation losses have been and therefor the larger the pension increase would be.    These % increases correspond to CORRE's long standing request that  each retiree receiving a pension increase that would recover about 75% of inflationary looses since the year of retirement.   The CORRE Board knows that this table will permit a straightforward calculation to be made which will show that the retirement fund can "afford" the requested pension adjustments.   Progress is slowly being made by CORRE on pension adjustments, but it is a difficult process.  If it were easy it would have been accomplished long ago.

Judy Kidd provided the following note. 

I was reading this morning's paper, and I came across this little
aside in Frank Munger's column. He is writing about Zach Wamp's
increasing influence in Congress and about his work on the energy and 
water subcommittee of the House Appropriations Committee. What 
caught my eye was this final paragraph:
 
"Side Note: Wamp made it clear that, if he becomes the energy and 
water subcommittee's Republican leader, he plans to exert direct 
pressure on the energy secretary to free up a pension increase for 
Oak Ridge retirees."

Congressman Wamp in an email to Frank Munger of the Knoxville News Sentinel said that the outlook is poor for pension adjustments under the Bodman regime at DOE, and that retirees may have to wait for a new Secretary of Energy. Further, Congressman Wamp complained about the difficulty of getting a fix of the pension problems legislatively. You can read the exact quotes from Congressman Wamp's email on Munger's blog.

Of course retirees already know that the prospect is bleak for adjustments under Secretary Bodman and that getting things done legislatively is difficult. Yet that is what we call upon Congressman Wamp to do. He is a good part of our representation in Congress on this matter, and he cannot rest until the injustice of DOE treatment of Oak Ridge retirees is corrected. He shares this responsibility directly with the two senators from Tennessee and Congressmen Lincoln Davis and John Duncan because they all represent thousands of Oak Ridge DOE contractor retirees and, I might add, present employees. They must keep this issue before Bodman, the administration, and the Congress.

Merry Christmas, Everybody!

Charlie Price says: 

At my age (79) and physical condition I should be avoiding stressful things.  I have written congressmen and DOE about my pension concerns for the past several years and get nowhere but put down.  I am getting very frustrated and cynical about the whole retirement benefit thing and, for that matter, the state of America in general. When I get into it my blood pressure goes up.

Chuck Thompson, a Y-12 retiree, says:

I have read the blog and find the information helpful. I talked to Senator Alexander immediately after the recent Halls Town Hall meeting. He seemed to be sincere about helping us. He is trying to understand why DOE Pension people think there is not enough money in the Pension Fund while CORRE says there is sufficient money in the Fund to grant the requested adjustments.

Lynn Edd Story, an ETTP retiree, says: 

In Senator Alexander’s response to the letter Dave Reichle, President of CORRE, presented to him at the meeting in Farragut, Senator Alexander said:

 “that the principal problem is that there is a difference in opinion over whether there is sufficient surplus to grant the requests of CORRE on behalf of retirees.”  

In the letter, CORRE estimates that the surplus for the multi-employer pension plan is now approximately $800 million, about 135% of actuarial requirement. CORRE also estimates the benefits we are requesting would cost about $200 million. To me, it seems like the two sides are working from two different sets of information.

Is there information available that shows how CORRE got their information? Do the people, that we are requesting the funds from, have the same information available to them? If not already done, would it be helpful to share this information with Senator Alexander, and others?

Ron Leinius writes: 

I am pleased to hear that Senator Alexander is now making inquiries to DOE and to the Oak Ridge contractors regarding pension issues and requests made by CORRE.  But why has it taken so long for him to understand that DOE IS CHEATING OAK RIDGE RETIREES, and that pension improvements must be made NOW?  Many of us have gotten very tired of hearing about the various "politically correct" inquiries and pursuits taken by our congressional representatives, usually in the form of gentle questions to DOE and its Oak Ridge contractors.  This approach merely invites DOE and its contractors to respond with another round of contrived statistics (CORRE has done a wonderful job of debunking DOE's claims of fair treatment for Oak Ridge retirees). 

It is time for our representatives to show a little backbone, and to demand that fair pension improvements be instituted for retirees.  If guidance is needed on how to accomplish this, simply consult with your congressional colleagues who represent the western DOE facilities.  With about 12,000 retirees, we represent a voter group of perhaps 50,000 people, and you can bet that this group will make itself heard during the next several congressional elections.

Continuing with the theme of a tougher approach, I think it would be very effective to get an old pickup truck, the more derelict the better, and to install large signs ("DOE IS CHEATING OAK RIDGE RETIREES") above the truck bed.  Then park the truck for a day near the entrance to the DOE building in downtown Oak Ridge;  the next day, park it near the Solway bridge during commuter traffic periods; follow up by parking in on South Illinois Avenue in Oak Ridge, leading toward the DOE facilities.  And wouldn't it be interesting to drive it up and down Cumberland Avenue in Knoxville, on a football game day?  The local newspapers would fall all over themselves to print pictures and stories.  Maybe the Washington Post would pick up on it, too.

I bet there'd be no trouble getting volunteer drivers for that truck.  I'll take the first run.  

Dave Reichle, President of CORRE had the following letter to Senator Alexander hand-delivered to Senator Alexander today at the meeting at the Farragut Town Hall. Pete Lotts briefly addressed the Senator on pension issues during the Senator's appearance in Farragut and gave him a copy of the letter and a tabulation of the economic impact the proposed pension adjustments.

Senator Alexander replied that he and his staff are on top of the issue and that he is an advocate for the retirees. He said that the principal problem is that there is a difference in opinion over whether there is sufficient surplus to grant the requests of CORRE on behalf of retirees. From other sources we know that his staff is working on getting that clarified.

-- text of the letter to Senator Alexander-

Coalition of Oak Ridge Retired Employees (CORRE)
Working for Fair, Equitable, and Competitive Benefits
For Former K-25, Y-12, and ORNL Employees
P. O. Box 4266
Oak Ridge, Tennessee 37831-4266

October 10, 2007

Senator Lamar Alexander
800 Market Street, Suite 112
Knoxville, Tennessee 37902

Dear Senator Alexander:

Request for Your Endorsement of Oak Ridge Retirees Pension Needs

We respectfully request that you endorse the pension needs of the Oak Ridge retirees, as outlined by the Coalition of Oak Ridge Retired Employees (CORRE). We would further request that you communicate your decision in writing to the Secretary of Energy and its operating contractors in Oak Ridge with retirees in the government-sponsored pension funds here. Moreover, we are asking you to request DOE management and the contractors to grant these reasonable requests in the current Fiscal Year. The requests of the retirees are:

1. An adjustment in pension benefits for all retirees that will restore 75 percent of the lost buying power of their pensions that occurred due to the increased cost of living since their retirement. An overall adjustment averaging about 1.8 percent per year since retirement would accomplish this. We have been requesting this adjustment for the past four years and have been ignored!

2. A flat-rate reduction factor of 2 percent for retirees who have chosen the surviving spouse option effective July 2004 (same benefit that was extended to active employees in July 2004 and requested by CORRE at the same time).

The surplus for the multi-employer pension plan is now approximately $800 million, about 135% of actuarial requirement. We estimate the benefits requested would cost about $200 million. Adherence of the contractors and DOE to this need would continue the historical practice by all previous DOE Oak Ridge contractors of granting adjustments to the pensions based on loss of pension earning power.

We know that you cannot order DOE, or the contractors, to do anything with respect to the pensions. On the other hand, we know the moral imperative stated by you in terms of an expectation of what they should do, in all fairness and equity for retirees, will weigh heavily on what they decide to do on this issue. We have briefed your staff thoroughly concerning the details on this issue.

We hope you will agree with us and will act expeditiously to help restore some equity to the pension program for Oak Ridge retirees, who rightfully deserve to be treated as fairly as retirees in other states.

Sincerely,

Original signed by David Reichle-

David E. Reichle, CORRE President

CC: Tennessee Congressional Delegation

Bob Henderson & Al Brooks presented the following comments

Representative Zach Wamp has been a player in the DOE Oak Ridge Contractor's pension problem. He has given it more attention and done more than any other local legislator but no substantive progress has been made. Questions naturally arise about who are the other possible players that would be prejudiced against elder retirees.  

The adjacent table contains a list of the top contributors to Rep. Zach Wamp,(R/TN). It represents money passed from the corporation to its Political Action Committee and then to Wamp. UT/Battelle is the second largest contributor to Zach giving a total of $31,874. It is clear that they are an important player. While this is probably all legal, it is a little disturbing to find that one of the outspoken antagonists to the retiree's requests is the second largest contributor to the political war chest of the retiree's best hope for legislation intervention. 

This should not be taken as a criticism of Zach for it is the way our government is run. The retirees would be less than human if they did not wonder if the playing field is level. It may suggest that the mode of operation should be revised. The immediate problem is: how do the retirees deal with it. We suggest that it is by more letter writing to as many people as might do some good. 

Here is Congressman Lincoln Davis' recent letter to Department of Energy Secretary Bodman about DOE withholding Part D Medicare funds.

————————————–

September 21, 2007

Secretary Samuel Bodman
United States Department of Energy
1000 Independence Avenue, SW
Washington, DC 20585

Dear Secretary Bodman:

I am writing this letter on behalf of several of my constituents, who are retirees from Department of Energy facilities in Oak Ridge, regarding their continued efforts to obtain an increase in their pension benefits. Several constituents as well as members of the Coalition of Oak Ridge Retired Employees (CORRE) have contacted my office requesting additional assistance with this issue.

In recent correspondence forwarded to my office, representatives from CORRE have also expressed their concerns about the possible withholding of Part D Medicare funds from contractors for partial payments of their costs of maintaining drug benefits for retirees.

Since taking office, I have worked with my colleagues in the Congress to address CORRE’s pension issues as well as other issues important to the Oak Ridge facilities. It is my hope that through working with contractors, the Department of Energy, my congressional colleagues and all CORRE members, this situation can be resolved in the very near future.

I would respectfully request that the Department of Energy revisit the retirees’ concerns about their pension benefits and attempt to resolve this issue in such a manner that provides fair and equitable treatment to all concerned. I would also request any information you can provide which would address concerns expressed by members of CORRE about the Part D Medicare funds.

Thank you for your consideration in this matter. I look forward to hearing from you in the near future. Please do not hesitate to contact my office with any additional questions regarding this issue.

Sincerely,

Lincoln Davis
Member of Congress TN-04

—————————————-

We retirees appreciate very much the initiative of Congressman Davis.  The problem, however, is that DOE takes 3 to 9 months to reply to these letters.  DOE Headquarters needs to make quicker response to these requests that deal with DOE's unfair treatment of people.

Pete Lotts has made a comment about the September 29 posting regarding the Part D subsidy.  
CORRE has a copy of letter of Representative Lincoln Davis written to DOE asking DOE management why they have not shared the subsidy with retirees. CORRE was told in a letter from Senator Alexander that he also has recently asked DOE for an explanation.
 

In a letter to the Knoxville News Sentinel, Sara Jordon, a retiree from BWXT had this to say:

"Clearly our senators, Lamar Alexander and Bob Corker, and Reps. John J. Duncan Jr. and Zach Wamp do not care about this group of 12,000 retirees who spent their careers in Oak Ridge serving national causes and are now forgotten.Unlike their counterparts in New Mexico and California for other Department of Energy facilities, the guys in Washington have ignored many letters from us, the members of the Coalition of Oak Ridge Retired Employees (Google "CORRE")."

Read her whole letter on Retirees Seeking to Improve their Pension Benefits.

Yesterday at the annual meeting of CORRE, President Reichle encouraged you to communicate with your congressional delegation.  Al Brooks has done that many times. He has shared one of his letters with us to use as a guide.

-The Editor

Dear Senator Corker:

If no one introduces legislation or initiates some other remedial action, there will be nothing for you and the other Tennessee legislators to "review and vote on". This Oak Ridge problem is separate and in addition to the national DOE pension problem and needs a local solution. Legislators from other states have taken similar action in regard to the University of California DOE sites. Why should Oak Ridge retirees receive any less assistance? Please work with the Coalition of Oak Ridge Retired Employees (CORRE) to initiate some definitive corrective action.

Sincerely,

Alfred A. Brooks, Contractor Retiree

Most of the East Tennessee retirees from the DOE Contractors in Oak Ridge are represented by Congressmen John Duncan (2nd District), Zach Wamp (3rd District), and Lincoln Davis (4th District).

All have been supportive of CORRE's objectives, have contacted the Mangers of the major facilities in Oak Ridge (UT-Battelle, BWXT, Bechtel-Jacobs, and Wackenhut), and have written to the Secretary of Energy on our behalf. Zach Wamp, in whose district DOE-Oak Ridge is located has taken the lead.

Congressman Wamp was instrumental in helping to block the "420 Transfer" of surplus funds out of the MEPP Trust Fund to construct buildings at Y-12.  Zach Wamp was the force behind the pension benefit adjustment (averaging 15% and prorated from older to younger retirees) announced in 2001 (note this applied only to those who retired before April 1998).  Zach also supported the 2004 minimum pension provision for retirees in 2004 ($600 couple/$400 surviving spouse). Zach serves on the House Energy & Water Committee's Subcommittee on Appropriations.  This subcommittee restricted DOE from using any appropriated funds to implement DOE change notice 351.1 that was issued in draft in 2006.  This notice would have effectively blocked any future pension adjustments for retirees. DOE withdrew this draft notice in 2007 in response to comments from across the country.  The Hanford WA press gave Zach's role on the House Energy & Water Appropriations Subcommittee credit for the single most important action instopping 351.1.

Our Congressmen continued to support pension adjustments for retirees, but the Department of Energy in Washington has stated that there will be no future pension adjustments.  DOE says that they can no longer afford them [note the MEPP Trust Fund in Oak Ridge currently has a surplus in excess of $600 M).

It will take the proactive support of Tennessee's senators to obtain change in DOE's position. CORRE representatives have sought unsuccessfully to meet with Senator Alexander. CORRE did meet with Senator Corker earlier this year within 6 months of his election. Both have been thoroughly appraised of the pension issues. Retirees have been waiting to see what they will do. Time is not on the side of retirees and they are impatient. They want to see the pension issue as a key priority of their elected officials.

See the CORRE web site (www.CORRE.info) for more commentary and correspondence on this topic. If you wish to make comments or ask questions, E-mail the blog editor at  davemason@corre.info.

Written by CORRE Board President David Reichle

Dear Senator Corker:

I know you are very busy on critical issues and I appreciate your work as a public servant. Please take a few minutes of your time to clearly understand the plight of the Oak Ridge Retirees.

We have a simple problem that won't be solved without your help. Our retirement trust fund has over $3 Billion, including over $600 million in surplus government funds. For many years the contractor who administered the fund arranged for an adjustment to retiree pensions when the average purchasing power of the pensions had dwindled to around 50% of their original value. New contractors and new DOE management in Washington have not seen fit to continue these past practices even though they were fair and have required no new government money since 1984.
Adjustments to retiree pensions would be good for the area economy as well as the pensioners. The Secretary of Energy has said he is the person who has to make the decision. I trust you will be willing to help him see the wisdom of not dragging his feet any longer on this move. About 12,000 of us are counting on you to get involved.

Charlie Kuykendall

Or does he care? CORRE representatives met with Senator Corker in June to explain the need for adjustments to pensions and how they are justified and affordable. Unfortunately, CORRE officers have been in a position of playing catch-up with Senator Corker, as the companies had already gotten to him first. Today, Senator Corker's office sent out his latest newsletter with no mention of the pension issue, and there is no mention of it on his website.

I wrote the following email to Senator Corker today:

"Your recent newsletter received today and your website makes no mention of the issue on Oak Ridge pensions. Why not?

It would appear to us that the matter is not on your agenda. Perhaps you have bought into the administration policy which is not to honor past commitments to people. It would appear to us that the administration is only seriously interested in honoring commitments to business and moneyed interests. We would recommend you not buy into that policy.

We elected you to represent the people of Tennessee, not the companies that run the DOE plants. The companies don't vote and are not citizens.

Be assured that the 12,000 retirees and their families are watching what you do."

Write to him yourself, if you are concerned.  Click here to send him email.

According to an Oak Ridger article, The Energy and Water Appropriations Subcommittee passed a bill Thursday that would block the Department of Energy's new Contractor Employee Pension and Medical Benefits Policy if approved by the full committee.

Quoting from the article in the Oak Ridger:

The Energy and Water Appropriations Subcommittee's bill states, "None of the funds made available in Title 3 of this act shall be used for implementation of DOE Order 351.1 or any similar DOE order modifying the Contractor Employee Pension and Medical Benefits Policy."

"We're using congressional influence to try to keep in check the executive branch's efforts to withhold payments to contractors for certain pension benefits, which is what the order originally said," U.S. Rep. Zach Wamp, R-Third District, said Thursday."

Further quote from Rep. Wamp: "Congress is trying to exert pressure to protect retirement benefits of workers, and at the same time, there's a great effort in Congress to get increased compensation for our retirees. It's a difficult process because the contractors, NNSA and DOE, are unified in their concern about out-year capabilities to honor needed increases and pensions.

"But this demonstrates Congress is putting pressure on the administration to side with retirees."

End of Quotes from the Oak Ridger—-

Note– This is a step in the right direction to persuade DOE and the administration to start considering improvements to pensions of Oak Ridge retirees. It is good to see the Congress asserting itself on this general issue. The vote of the full committee is coming up this week- on Tuesday, according to the Oak Ridger.