DOE ditches pension reform, Officials won't ask its contractors to make changes

[Omaha Steve]

http://www.knoxnews.com/kns/business/article/0,1406,KNS_376_5591727,00.html

DOE ditches pension reform

Officials won't ask its contractors to make changes

By FRANK MUNGER, [e-mail]
June 19, 2007

The U.S. Department of Energy has scrapped a proposal to reform pension plans at its contractors, including those in Oak Ridge.

DOE first issued the proposal in April 2006, but the agency postponed the implementation because of a largely negative response.

Federal officials announced last week they would not reissue the notice to put in place broad-based changes, including a change from defined-benefit pension plans to a system with defined contributions - similar to 401(k)-type plans.

DOE had said the changes were needed to help control runaway pension and medical-benefit costs, which had reportedly grown 226 percent since 2000 and threatened the funding base for basic missions.

Megan Barnett, a spokeswoman at DOE headquarters in Washington, D.C., said Monday the agency would "move forward with the previously established policy" while continuing to study the issues and gather input from stakeholders. She said DOE would manage its long-term financial commitments, but she did not address how that would be accomplished.

UT-Battelle, which manages Oak Ridge National Laboratory, and other DOE contractors in Oak Ridge had been supportive of the reform proposal, saying it would provide flexibility and help them recruit new personnel.

FULL story at link.

[Jackpine Radical]

1. Funny how these "reforms" always screw the little guy.

"We're going to reform your pension plan"="don't expect to retire."

[antigop]

2. Exactly n/t

[papau]

3. Classic - "runaway health costs"justifies dropping defined benefit plans like Soc Security-what crap

n/t