Friday, March 10, 2006

The One and One-Half Percent Solution?

With the Davis Administration, the expression: “We Cheat the Others and Pass the Savings on to You”; “Others” seems to have become more inclusive.

Before, the failure to negotiate adequate medical contributions was basically shifted to the non-voting retirees. Now it appears as if the Active Members may be asked to take a bite from Davis’ meager buffet.

At the San Francisco meeting the notion that Active Members would suffer a 1.5 percent “tax” on their base pay to add to the Medical Plan coffers was broached. This morning, one of the more loyal shills posted something on the Members BBS about calling “Washington” to find out about it.

Is this an effort by the Davis Administration to find out just what the Active Members are willing to accept in what amounts to a backdoor wage cut to all actives to compensate for a few low-ball contracts with high attendant liabilities?

If it is, expect this to be couched in the usual divisive “it’s cuz o’ dem pensioners and their 10 kids” terms instead of the true reason.

Davis’ recently late change to the retirees with dependents minimum may be driving this. Notice the $800 per month maximum has been rescinded, raising the specter that Davis himself may have to pay more for himself should he retire. He then drops the 2008 COLA in effect making the cap change cost neutral for himself.

What was it Davis was putting out to the Members about the MEBA Medical Plan in 2004?

Ah yes, here is a gem:

“….Bottom line is that the Medical Plan is bringing in more money than it pays out, and this will only continue because we have negotiated excellent contribution rates into every contract over the past three years”

2 Comments:

At 10 March, 2006 11:30, Blogger wff said...

It has been shown here on the Mrad site, the Mrad Blog and the retirees List that current contributions either via a Cola increase of 4% or a fixed monatary increase as was incorporated into the Energy Independence Contract, have not and never will keep up with Medical Plan expense increases of 8% to 12% annually. While the active members elected Davis and his slate in 2004 with campaign slogans of "Plan were bringing in more than they spent". The Summary for 2004 shows the Medical Plan had income of $35.42 Million dollars with Benefits paid of $34.73 Million dollars. So the Davis spin of contributions being greater that expenses on the surface could be considered an accurate if not deceptive statement. Now factor in $3.6 Million in administrative cost and the transfere of monines from the Reallocatable Fund and the Plan may actually lost anywhere between $2.91 Million and $10.41 Million.
Now for the 1.5%. If this is based on non-watch calculations then here are some figures based on recent Energy Independence Contract.
Chief Engineer Base: $8,950
Med Contribution: $135/month
First Engineer Base; $5,593
Med Contribution: $83/month
Second Engineer Base; $4,945
Med Contribution: $75/month
Third Engineer Base; $4,298
Med Contribution: $65/month.
Now does this 1.5% contribution, tax, surcharge, whatever cover all non-retired participants in the Plan.
The lack of any concrete information forthcoming from either the Plans Office or the Union Officials still reminds me of the old saying "if it looks like a duck".
Walter Fletcher

 
At 26 April, 2006 21:09, Anonymous Anonymous said...

New DEC motto: We're not happy until you're not happy.

 

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