B
baily29
Guest
What is the name of your state? PA.
I would like to get an opinion on what may be a civil rights law and equal representation issue as to how pension funds are being distributed among employees represented by a union.
I have been working for an international corporation for 21 years. I have been a member of the union and have been employed in Pennsylvania for the entire 21 years with the company. My company provides a Defined Benefits Pension Plan (funded completely by the company).
Under the current collective bargaining agreement an employee can receive full pension and health benefits at the age of 55 (with any service time) or with 30 years service (any age). If an employee retires before any of those requirements are met there is a 6 % penalty per year below age 55 (unless he/she has 30 yrs service).
Recently our company announced that all operations will be closed in Pennsylvania and relocated elsewhere, consequently all management (non-union) and represented employees will be laid off.
The company and union have agreed to an “Enhanced Facility Closing Program” as a replacement for the Facility Closing Program contained in the local union contract. This program, for union employees only, will add 5 years to your age and/or 5 years to your service time to make a union employee “pension eligible”. If an employee has either 25 years of service or is 45 years old, he/she will become pension and health benefits eligible. The employee will still be penalized 6 % per yr for each year under age 55. The company will pay a special “Social Security Supplement” until age 62 to offset the discount
Under this plan, the union agreed to, employees who may have 21, 22 or 23 yrs service and are not age 45 will receive nothing. An employee with less service time, 20, 21 etc. who is 45 yrs old will receive about $1200/month for life plus health benefits (a total value of approx $360,000). This value is based on a Single Prem. Life Annuity.
The fact that all these employees not only are “pension and health benefit eligible” but are also receiving a supplement to compensate for the pension discount, leads me to believe all others (sometimes with more service) are being treated with discrimination. There seems to be such a large disparity in treatment with age being the only factor.
Is there any legal action that can be taken against the union for not representing everyone equally (at least those with equal service time)?
I would like to get an opinion on what may be a civil rights law and equal representation issue as to how pension funds are being distributed among employees represented by a union.
I have been working for an international corporation for 21 years. I have been a member of the union and have been employed in Pennsylvania for the entire 21 years with the company. My company provides a Defined Benefits Pension Plan (funded completely by the company).
Under the current collective bargaining agreement an employee can receive full pension and health benefits at the age of 55 (with any service time) or with 30 years service (any age). If an employee retires before any of those requirements are met there is a 6 % penalty per year below age 55 (unless he/she has 30 yrs service).
Recently our company announced that all operations will be closed in Pennsylvania and relocated elsewhere, consequently all management (non-union) and represented employees will be laid off.
The company and union have agreed to an “Enhanced Facility Closing Program” as a replacement for the Facility Closing Program contained in the local union contract. This program, for union employees only, will add 5 years to your age and/or 5 years to your service time to make a union employee “pension eligible”. If an employee has either 25 years of service or is 45 years old, he/she will become pension and health benefits eligible. The employee will still be penalized 6 % per yr for each year under age 55. The company will pay a special “Social Security Supplement” until age 62 to offset the discount
Under this plan, the union agreed to, employees who may have 21, 22 or 23 yrs service and are not age 45 will receive nothing. An employee with less service time, 20, 21 etc. who is 45 yrs old will receive about $1200/month for life plus health benefits (a total value of approx $360,000). This value is based on a Single Prem. Life Annuity.
The fact that all these employees not only are “pension and health benefit eligible” but are also receiving a supplement to compensate for the pension discount, leads me to believe all others (sometimes with more service) are being treated with discrimination. There seems to be such a large disparity in treatment with age being the only factor.
Is there any legal action that can be taken against the union for not representing everyone equally (at least those with equal service time)?