And that was because they gave up those wages for what they thought was going to be excellent health care. Trimet wants to break the bargain and give nothing back for breaking it. Our union got suckered and our members are too passive to see they have been robbed
Seattle Metro pays $5/hr more than #trimet and they are only the #5 highest--------------> Veteran drivers (cont) http://t.co/5TzhHI6xL6
— AL M (@AlYourPalster) April 22, 2014
2 comments:
Another factor that mitigates the difference between the wages of KC Metro and TriMet is that at Metro, drivers are on PERS (Washington state pension) and have to contribute to their retirement benefit where at TriMet, drivers get a "free" pension plus "some" medical coverage at retirement.
Metro drivers therefore have to contribute at least 4.92% (depending on which plan) of their wages. Plan 2 employees are contributing 4.92%, Plan 3 employees are contributing anywhere from 5-15% (but getting a free defined benefit at half the Plan 2 calculation), and Plan 1 (those left who hired on before 1977) are contributing 6%.
Therefore that $5 an hour more is further mitigated by at least $1.49 /hour because that is deducted each paycheck and if staying to retirement, then becomes part of the cost of the pension that the employee receives ...albeit, the employer (Metro) is also contributing dollars to the defined benefit. Of course, Plan 3 employees are contributing to the defined contribution portion of the plan that will become their own anyway so that plan is the closest to getting a "free" pension as the defined benefit portion is completely free.
With all that said, bottom line is that TriMet employees may not be making quite the hourly rate as Metro employees but TriMet drivers are getting a free pension and some medical paid at retirement. Metro drivers have to contribute to their pension and get no medical benefits at retirement.
The free pension is a relic of past history. No longer does that exist
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