Trimess

Thursday, February 6, 2014

Trimet wants future retirees to pay 50% of their health care costs

Translation: You can't retire from Trimet till you hit medicare age. It's a huge hit to trimet union employees.
Trimet will not bargain, they will get what they want 1 arbitration at a time

ATU 757 and TriMet completed 150 days of bargaining on February 4, 2014 and TriMet immediately requested mediation through the Oregon Employment Relations Board, the last required step before arbitration. TriMet has refused to schedule any further negotiation dates with the Union.

This is one of a series of negotiation updates to highlight the major issues in dispute between TriMet and the Union, with TriMet proposing major take-a-ways in wages and active and retired member healthcare, and a take it or leave position or arbitration.


The following is TriMet's healthcare proposal affecting employees with 10 or less years of service at the time of ratification or arbitrator's award:

Employees who meet the qualification for full retirement on or after the first day of the month following ratification by both parties or following contract award pursuant to interest arbitration and retire on or after that date shall be eligible only for single coverage under the District's medical, prescription drug, dental and vision benefits until reaching age 65, at which time coverage shall end. During this period of coverage, the District will pay 50% of the District's defined contribution.

Current retired members receive full coverage, 100% of the premium cost paid by the District including District paid Medicare B premiums. What this means for those with less than 10 years of service when new contract becomes effective and retires before reaching age 65:

If you are vested and under 65 by retirement, you will be paying the following amount:

The current PPO premium cost for a retired employee plus spouse is $1605. TriMet will only pay $382. The retired member out-of-pocket cost will be $1223. If the retired member pension is $1600 a month, after paying for member and spouse insurance costs of $1220, the take home monthly retirement pay will be $380. This is for an 80/20 insurance plan, $600 deductible and employee premium cost of 6%. Those enrolled in the Kaiser plan will cost the employee approximately $200 less.

Since TriMet will not provide coverage after 65 years of age, so the retiree and spouse will pay out-of-pocket about $580 for Medicare B premiums and a market available Medicare supplement plan.

And TriMet's wage offer for a three year contract is to eliminate COLA and give no wage increase the first and second year, and a 3% increase in the third year of the contract.

No comments: