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Union Advocate

October 3, 2009

November 18, 2009

March, 2010



Adjunct Retirement Podcast

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From the Trenches
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Message from the President:
Retiree Benefits

Below please find the data on costs of retiree benefits that I handed out at last week’s faculty meeting. The amounts listed are what the various plans would cost the retiree above the District cap. They are monthly costs. Multiply by 12 for annual cost.

The general feeling among those attending as well as the executive council is that our position should be that we are all one group, that it’s fair to expect retirees to make a contribution since most active employees do, and that the contribution should be the same, based on the plan chosen, not family status.

That would mean that current single retirees on plan 1A would pay $972 per year as do active employees (rather than paying nothing), but that retirees with a family would also pay only $972 rather than over $12,000. The difference in the cost would be covered by the District and that overall cost would be taken into account during our annual negotiations on benefits for the entire group.

Here’s the language we proposed on October 30:
Retirees eligible for benefits under Article VI, Retirement Incentive Programs, of the AVCCD-AVCFT collective bargaining agreement shall be eligible for the same plans as those offered active employees. Such retirees shall also be subject to the same contributions as active employees for the same plans, regardless of family status, irrespective of the difference in cost for retirees. In addition, the District may offer additional plans as is allowed by the insurance carrier(s). Retiree contributions for those plans will be set at the same time as contributions for those available to active employees. Retirees will also be offered the option of waiving the dental, vision and life insurance plans as a way of reducing the cost of their contribution.

This agreement will go into effect starting 1-1-07 and will remain in effect unless changed through negotiations.



Monthly

Cost (x 12 months ) to Retirees ABOVE District Cap




Retiree

Retiree + 1

Retiree + 2 or more

Com- posite

Plan 1A

$0

$602

$1,019

$669


Plan 2C

$0

$511

$904

$574


Plan 3C

$0

$473

$856

$535


Plan 6A

$0

$417

$785

$476


Kaiser

$0

$0

$220

$0








Retirees are currently on the tiered rate




Total cost above cap for all is $113,000 this year




Composite rate would be $154,000 above cap




21 retirees are receiving benefits





65 years of benefit left after June 2007 (average of 3 years each)