Wednesday, November 30, 2011

Retirement Plans – Opportunity, Risk, and Reward

- by Kerry Graber

It was a temperate September Saturday in SeaTac, and I was there for the WFSE Executive Committee meetings. I was looking forward to some Fall shopping at the Nordstrom Rack as soon as my last committee meeting wrapped up.  Then I found out the Retirement Committee was meeting and I felt compelled to find out what this group is working on.

I looked around curiously at the dedicated few from the Executive Board that had asked to be assigned to this small committee while we waited for the guest speaker.  Then Senator Conway, a democrat from the 29th legislative district, walked in and sat down like he was joining a group of friends to have coffee and a nice chat.  Tall and distinguished, the Senator had a relaxed but serious demeanor as he launched into his purpose.

Senator Conway speaks

The Senator described the 1.5 to 2 billion deficit projected in the budget, and expressed both concern and determination that state employees and their retirement benefits should be provided for.  He shared that the legislature was no longer interested in underfunding the system, “playing around with the pension funds” as he put it. Despite the press and the media focusing on problems with PERS 1 and TERS 1 plans, he assured us that Washington has a well-funded pension system. 

While new legislators want to see new employees not provided a defined benefit plan, he assured us that our contractual right to a pension will not go away.  Senator Conway noted that pensions will be provided, but admitted there will likely be no increase in benefits.  As for a plan 4 “defined benefit plan” for new employees (think of it like a 401K that has no guarantee of return), he stated that Governor Gregoire did not appear to agree with this idea, and that there was not enough support in the legislature to pass a bill for it. 

Since I was unaware the attempt had been made to propose or pass such a bill, this news brought me to the edge of my seat.

The Senator went on to explain that about 70% of the future value of our pension plans is funded by investment of both the employee’s and employer’s contribution, and 30% from current contributions.  The co-mingled trust fund is assumed to have an average 8% return on investment, invested carefully by the State Investment Board (SIB).  This varies over time based on the volatility of the stock market.  The profit and losses are averaged over time.  As most of us know, the legislature thought they could reduce contributions and start PERS 3 because of the great market returns.  This resulted in an unfunded liability for employees in PERS 1 and TERS 1.

Senator Conway was asked about the possibility of early retirement options being added to the plans.  The Senator was thoughtful, then shook his head and told us that all over the country early retirement options are being stripped from the plans that have it.  The bottom line: “Be realistic,” he said.

Gain Sharing and Early Retirement

After the Senator said his good-byes, the committee took up the business that had been delegated to them by the Council 28 executive board, namely, a resolution that directed the WFSE to work diligently toward the adoption of the “rule of 85” into law.  This rule would allow a person to retire without penalty or reduction of benefits if the sum of their age and years of service credit added up to 85.

Let me digress for a moment and update you on legal actions that relate to all of this.  As reported in previous bulletins, Ecology board members (my predecessors) were instrumental in pushing WFSE to sue over the loss of gain sharing for PERS 1 and 3 that occurred a couple of sessions ago.  Members felt that the promise of gain sharing was contractual, and had enticed many PERS 2 employees to switch to 3 when they otherwise would not have changed plans.  A judge ruled on the suit in favor of WFSE last spring that indeed gain sharing had been promised and must be restored.

Inextricably linked to that lawsuit was a new early retirement provision for PERS 2, that was included by the legislature as a kind of consolation prize when they removed gain sharing.  The early retirement provision allows employees with 30 years of service to retire before the age of 65 with less penalty, and at age 62 with no penalty.  The judge delayed ruling on whether this provision had to stay in place after gain sharing was restored. The union wants the court to retain early retirement, but the state argued it was only granted as a replacement for the loss of gain sharing. The judge is scheduled to rule on this piece of the lawsuit in December. 

Meanwhile, some who qualify under the early retirement provision have put in their papers, but others are faced with the dilemma that if they don’t retire now, the provision might go away after the judge rules and they would have to keep working until they are 65.  The situation has been made more complex by mixed messages from Department of Retirement Systems and human resource departments on the timing and deadline for people to make up their minds.  There is no way to know which way the judge will rule, or whether WFSE will appeal an unfavorable ruling to a higher court thereby extending the window for prospective retirees. 

If nothing else, I can say as an Executive Board member I will continue to push for assertive action by union legal staff in the courts to retain any benefit or improvement to retirement that we can gain in these troubled times.  



Next Steps for the Retirement Committee

Retirement Committee Chair Bill Copland, Department of Corrections member and president of the local in Richland, turned back to the group for input on how to proceed on pushing the rule of 85.  Clearly this is an option the members want but may be impossible to achieve in a climate of benefit-stripping.  Bill asked for input from the committee members to articulate where we are at, where we want to be, and what it is going to take to get there.  We were asked to go back to our Locals and talk about this issue and share what we have learned, bringing back any input that would be helpful to the committee.

Want to know more?

I have posted some background documents on the health of the retirement system, the Senate Bill report on the attempt to establish a PERS 4 from last session, and a policy brief from Governor Gregoire.  I will post more information as I receive it. 

Subscribe (Folllow) this blog to receive notification of updates.

In the interim I urge you to get educated about this issue and educate others – respond to media reports with letters to the editor - point out that the “impending disaster” in underfunded state pensions, touted in news stories, is not a complete and accurate picture.  Lastly, be ready to provide your input as a citizen and state employee (on your own time of course!) when the issue comes up again for lawmakers

Green Caucus Activates Members and Breaks New Ground

-by Kerry Graber

The Council 28 Executive Board passed a resolution last year and formed a Green Caucus (GC) group to start working on integrating environmental considerations into our union’s values, actions, and decisions.  The GC kicked off this effort last January with a workshop and planning session at the SeaTac Double Tree Hotel, and started meeting by conference phone/video conference on a monthly basis.  A second planning session was held in September, drawing members across the state to prepare a strategic plan for unveiling at the October Council 28 convention.

The convention provided an opportunity for the GC to hold workshops and discussions about what members would like to see the union accomplish by adopting sustainability as part of our values and beliefs.  Sustainability is a word seen a great deal in print and in the media, and can mean different things to people.  For the GC, sustainability means we look at issues and decisions for their long term consequences, their impact on future generations, and their use of precious resources.  The language of sustainability is useful because we can engage in controversial discussions without buying in to the polarizing of people into “winners” and “losers.” 

Looking at many problems we struggle with right now in Washington state, members long for decision-makers to engage in problem-solving instead of rhetoric.  Sustainability brings into focus issues like stable funding for State Parks, green jobs that are here to stay, products that are made without toxic chemicals, because the view encompasses the future and considers the real costs of decisions. 

What we’ve done so far:

•    Outreach to members.  The GC was formed to provide our members a voice in the discussion about environmental issues, so setting up a communication system from the start was important.  The first step was to establish a blog where we could post our agendas, meeting notes, and resources.  Part of our push at convention was to sign up more members to receive notices of events from our blog.  We doubled our number, and we continue to see more sign-ups.  We also kicked off our involvement in twitter, and started posting messages during convention.  GC members are also visiting local meetings and sharing our vision.

•    Going green in our union work.  We started working with Council staff to provide information and resources on “walking our talk.”  The GC pushed for a greener convention, offering a local green building tour and making sure recycling was a part of the facilities we used.  Council staff started evaluating offices and buildings for considerations like curb-side recycling and energy use.  The Council’s Women’s Committee adopted a goal to hold paperless meetings.  Council Executive Board meetings have cut paper use in half.  We are looking for a member to help us develop a “10 things your Local can do to save the earth.”

•    Making friends.  Another goal was to start networking with environmental groups and develop relationships with organizations that could educate us and ally with us on our issues.  Our second face-to-face planning session was started with a presentation from Laurie Valeriano, executive director of the Washington Toxics Coalition.  In the Spokane area GC members have been making connections with local and statewide groups, and we hope to have a speaker from one of these at our next monthly meeting.  Plans are in the works to have union members attend the Spokane River Keeper’s spring cleanup event.  The GC is looking for a similar event we can participate in for the Olympia area, and a member to make the connection for us.

•    Gearing up for the session.  As the special legislative session convenes we are preparing to have a voice in the coming regular session.  Members have volunteered to help with bill tracking and making sure legislative staff are aware of our concerns about specific legislation.  We are identifying members who can provide resources and possibly testify on several issues that may come up, including environmental agency consolidation, funding for State Parks, and toxics legislation.  We are identifying environmental groups that might partner with us in this effort.

With the grim economic outlook and the prospect of another all-cuts budget, members may question whether involvement in the GC is important.  You already know that being a state employee is more than just bringing home a paycheck, it is also about public service and being a citizen.  The GC offers a chance for members to engage in a group that works on issues that matter to the communities we live in.  In the process we may find ourselves in the company of people and organizations that see us as allies and friends.  Our green shirts may come to stand not just for “union” but for “green values” as well.

Furlough Grievance Update

– Debbie Brookman, Labor Advocate, WFSE/AFSCME Staff

This is a quick update on the status of the various Temporary Layoff (TLO)/Furlough grievances filed in Ecology.
 
Lucas et al. This case was filed on behalf of overtime exempt Ecology employees. We went to a hearing on the "arbitrability" of the cases on 9/27/11. The issues included timeliness, who should be included in the group grievance, whether or not each individual grievant must show harm and a contract violation versus just showing it for the group as a whole, and other issues related to whether or not these grievances can be heard on their merits. Briefs were due on 11/8/11. The arbitrator should issue a decision approximately 30-days from that date. Depending on the arbitrator's decision on arbitrability, this case could go to a second hearing on the "merits" of the grievance.
 Stolz et al. - This case was filed on behalf of the permanent emergency spill responders who were not exempted from the furloughs even though the law exempted their services from the layoffs. This case is being handled by our law firm and was scheduled to go to hearing on Monday, 11/7/11. A decision should be available by the end of January, if not sooner.
 
Fiedler et al. - This case was filed on behalf of Ecology employees who were not allowed to adjust their alternate work schedules during the first furloughs (those that occurred before the Memorandum of Understanding allowing schedule adjustments was in place). We were scheduled to go to a hearing on the arbitrability of the grievances but ended up settling those issues. Now, the case has been referred to our attorney and a hearing on the merits is scheduled for March 19, 2012.
 
Groves et al. - This case was filed on behalf of part-time Ecology employees whose work schedules were reduced to less than 20-hours as a result of the furloughs. This case has been consolidated into several other grievances filed in DSHS and the Department of Health.  Questions about this grievance should be directed to Sherri Ann Burke, Labor Advocate, at WFSE Headquarters.
Other questions can be directed to Debbie at 360-352-7603 or 800-562-6002.

Monday, November 21, 2011

Giving Green

Hello fellow green caucus members,

Heading into Thanksgiving we are already getting bombarded with sales pitches for after-holiday shopping.  I ran across a link from the Huffington Post on non-material Christmas gifts from last year, and I wanted to share it in case you are thinking like me, “enough with the buying stuff already!”

As we head into another Christmas season, and for some, into more tough times, this is a good moment to consider supporting local economies by avoiding chain stores, and giving personalized experiences instead of stuff when you can.  This is hard, because I know my kids like to have a box or two to open, but my husband and I are providing vacation experiences for my teens this year instead of a lot of things.  Here’s hoping for a very green holiday to you all.

I am also including a link to an interesting article in The Nation on capitalism versus climate.  It is a long read, but a great in-depth article about the complexity of the problems we face as a planet and a society.  Great analysis on the current politics of climate change.

Happy Thanksgiving everyone! 

Kerry Graber

Friday, November 18, 2011

Green Caucus Activates Members and Breaks New Ground

By Kerry Graber, Local 443, Ecology Bargaining Unit

To be published in the Local 443 newsletter:


The Council 28 Executive Board passed a resolution last year and formed a Green Caucus (GC) group to start working on integrating environmental considerations into our union’s values, actions, and decisions.  The GC kicked off this effort last January with a workshop and planning session at the SeaTac Double Tree Hotel, and started meeting by conference phone/video conference on a monthly basis.  A second planning session was held in September, drawing members across the state to prepare a strategic plan for unveiling at the October Council 28 convention.

The convention provided an opportunity for the GC to hold workshops and discussions about what members would like to see the union accomplish by adopting sustainability as part of our values and beliefs.  Sustainability is a word seen a great deal in print and in the media, and can mean different things to people.  For the GC, sustainability means we look at issues and decisions for their long term consequences, their impact on future generations, and their use of precious resources.  The language of sustainability is useful because we can engage in controversial discussions without buying in to the polarizing of people into “winners” and “losers.” 

Looking at many problems we struggle with right now in Washington state, members long for decision-makers to engage in problem-solving instead of rhetoric.  Sustainability brings into focus issues like stable funding for State Parks, green jobs that are here to stay, products that are made without toxic chemicals, because the view encompasses the future and considers the real costs of decisions. 

What we’ve done so far:

•    Outreach to members.  The GC was formed to provide our members a voice in the discussion about environmental issues, so setting up a communication system from the start was important.  The first step was to establish a blog where we could post our agendas, meeting notes, and resources.  Part of our push at convention was to sign up more members to receive notices of events from our blog.  We doubled our number, and we continue to see more sign-ups.  We also kicked off our involvement in twitter, and started posting messages during convention.  GC members are also visiting local meetings and sharing our vision.

•    Going green in our union work.  We started working with Council staff to provide information and resources on “walking our talk.”  The GC pushed for a greener convention, offering a local green building tour and making sure recycling was a part of the facilities we used.  Council staff started evaluating offices and buildings for considerations like curb-side recycling and energy use.  The Council’s Women’s Committee adopted a goal to hold paperless meetings.  Council Executive Board meetings have cut paper use in half.  We are looking for a member to help us develop a “10 things your local can do to save the earth.”

•    Making friends.  Another goal was to start networking with environmental groups and develop relationships with organizations that could educate us and ally with us on our issues.  Our second face-to-face planning session was started with a presentation from Laurie Valeriano, executive director of the Washington Toxics Coalition.  In the Spokane area GC members have been making connections with local and statewide groups, and we hope to have a speaker from one of these at our next monthly meeting.  Plans are in the works to have union members attend the Spokane River Keeper’s spring cleanup event.  The GC is looking for a similar event we can participate in for the Olympia area, and a member to make the connection for us.

•    Gearing up for the session.  As the special legislative session convenes we are preparing to have a voice in the coming regular session.  Members have volunteered to help with bill tracking and making sure legislative staff are aware of our concerns about specific legislation.  We are identifying members who can provide resources and possibly testify on several issues that may come up, including environmental agency consolidation, funding for State Parks, and toxics legislation.  We are identifying environmental groups that might partner with us in this effort.

With the grim economic outlook and the prospect of another all-cuts budget, members may question whether involvement in the GC is important.  You already know that being a state employee is more than just bringing home a pay check, it is also about public service and being a citizen.  The GC offers a chance for members to engage in a group that works on issues that matter to the communities we live in.  In the process we may find ourselves in the company of people and organizations that see us as allies and friends.  Our green shirts may come to stand not just for “union” but for “green values” as well.

Want to get involved?


Join us. Sign-up using the link at top-right.

Meetings by phone or video conference occur every second Thursday of the month 6 – 7:30 p.m.  The call-in number is posted on the blog.

Attend in person at WFSE headquarters in Olympia third floor conference room, or in the Spokane field office.

Want to host a video connection at your field office?  Contact your field staff office manager for arrangements prior to the meeting.

Green Caucus flyers are available on the blog to be printed and posted at your worksite.