LINKS TO PSE PENSION PLAN
Comparisons between Final Average Earnings and Cash Balance
Calculation tool for pension: www.millimanservices.com/PSE
The security code to get in is "IBEW" (all caps).
PUGET SOUND ENERGY UPDATE
Late Thursday, August 5, 2010, afternoon we reached a tentative agreement with PSE for a new Collective Bargaining Agreement.
Highlights of this proposal are as follows:
Wage increases:
· April 1, 2011: 2%
· April 1, 2012: 2.25%
· April 1, 2013: 2.50%
Expiration: March 31, 2014
Change in Flex Credits calculation
Employee Only: 95% ($579.00 monthly) of the combined premiums of Group Health Options and Washington Dental Service High Option.
Employee with Dependants: 85% ($1282.00 monthly) of Group Health Options and Washington Dental Service High Option.
Employee Opting Out: $185.00 monthly.
The company will pay the premium for Basic Life Insurance (One half of base wage). The company will pay 100% of the Long Term Disability premium (65% of base wage) with a cap of $10,000 per month income ($6,500.00).
Premiums for 2011:
Group Health Options:
· Employee Only: $533.00
· Employee with Dependants: $1299.00
Regents- PPO
· Employee Only: $649.00
· Employee with Dependants: $1480.00
Regents- Traditional
· Employee Only: $523.00
· Employee with Dependants: $1178.00
Washington Dental Service- Basic
· Employee Only: $30.00
· Employee with Dependants: $64.00
Washington Dental Service- High Option
· Employee Only: $76.00
· Employee with Dependants: $209.00
The company will provide a non-flex credit contribution to employees with a Domestic Partner.
Pension:
· Employees with less than 5 years of service credits and new employees will be enrolled in the Cash Balance Plan.
· Employees who are vested will have the option to convert to the Cash Balance Plan or continue in the Final Average Earnings Plan. Future calculations will be based on straight time earnings.
· Employees who were previously employed with WNG may roll their frozen pension benefit into the Cash Balance Plan if they convert from the FAE Plan.
401K:
· Employees electing to convert to the Cash Balance Plan and new employees will receive a company match of 100% of every dollar of the first 6% of the employees compensation contributed to the plan plus 1% of their base wages at the end of the year.
· Employees electing to remain in the FAE plan will continue to receive the current 401K match.
Short Term Disability
· This proposal changes STD to the original proposal of 120 days.
PTO Accrual:
· Certain employees who were laid off in 2002, who had 10 years or more of service prior to layoff, and were rehired after 2 years will receive an additional 5 days PTO accrual.
Overtime:
· The amount of time and one-half is reduced from 144 hours per year to the first 50 hours of overtime worked excluding 12-hour shift workers with built in overtime.
Overtime rate calculations:
· Employees who receive shift differential will have their time and one-half calculated at the straight time rate plus shift differential.
· This would apply to OT1’s, scheduled overtime, and carry over only.
· Example: An employee makes $30.00 an hour as well as a 10% shift differential, their rate for OT1 is $33.00 an hour times 1.5.
We will be meeting with the Large Committee Wednesday, August 11, and expect to have the proposal in the mail by August 17, and will count on August 31.
The Small Committee will be recommending you vote to accept this proposal.
PSE Ballot Count
PSE Shift Selection Ballot Count
PSE 12-Hour Shift Working Rules Ballot Count
PSE CBA Extension Letter of Agreement
TO ALL PUGET SOUND ENERGY MEMBERS
March 22, 2010
On March 18, 2010 PSE sent to our members via company e-mail, and through U.S. Mail, a letter outlining the current Contract negotiations. First, this type of communication is highly unusual and could border on an Unfair Labor Practice.
Your Negotiating Committee has spent months across the table from PSE’s Committee with one objective, bring a proposal back to our members, a proposal that we could recommend for a yes vote. Unfortunately, that is not the case. The Company, from day one, has proposed substantial “take aways” from our current Agreement.
In the company’s letter they refer to projected increases in benefit costs and how the IBEW benefits costs have increased at a very high rate. What they didn’t say is the rest of the PSE employees benefit’s costs have also increased at the same rate.
The Company has spoken of “disproportionate” increases in pension and disability benefits and how they can only be reduced through changes to our current plans. This is the corporate way of saying we are going to take away your hard earned benefits.
Our negotiated Pension Plan provides a good benefit for our members after they retire from Puget Sound Energy. The Company points out in their last pension bullet points that “at least one out of every three IBEW members” would benefit from a change to the Cash Balance Plan. What they are really saying is, at least two out of every three members would be negatively affected.
Additionally, the Company has used assumptions that are not accurate. For instance, they assume that IBEW members will see a 3% increase in their wages in the future. Yet, the Company does not even offer wage increases of 3%. They are also using assumptions of a 7% return annually to the 401k plan. This has not been the norm over the last several years.
The other assumption the Company has used is the interest paid on Individual Cash Balance Accounts. Currently the interest earned for Cash Balance Accounts is only 4%. Yet when the Company provided information to the Small Negotiating Committee they used 6 ½% interest. Even though the Company has proposed to increase their match for the 401k plan it still will not help employees between the ages of 40 to 58.
The Company has stated our current overtime rules are confusing and difficult to administer. These rules have been in effect for 20 years! What they are really saying is they want to cut the way your overtime is paid. For many of our members they would never be paid double-time.
The Company has asked for your help to keep them financially responsible, yet when your Negotiating Committee has offered to extend the current Contract for one (1) year and implement a Joint Committee to explore all benefit plans and ways to decrease costs, the Company rejected our offer.
Please return your ballots and send a resounding message to PSE that their proposed “take aways” are not acceptable.
Fraternally,
Charles O. Smith, Business Representative
Rachel Proctor, Business Representative
Scott Anderson
Arlene Cunningham
Pat Darling
Hoby Shelton
Tim Van Dusen
COS:ek/opeiu8/afl-cio
Please see link below for Retirement Plan for Employees of PSE.
IBEW Retirement Benefit Formula Comparison Model
