Rocky Flats Retirement Plans

I was notified by a reader that Rocky Flats was making changes to the retirement plans and attended one of the meetings where the changes were explained. I don’t pretend that the following is an official version of what is going on, although I’ve tried to make it as accurate as possible. The bottom line, as I understand it, is that management of retirement benefits will be transferred to an insurance company and that pension benefits will not be affected. This is being done because of the cost of administering the current plan. I was told when I arrived at the meeting that I had not received a letter announcing the changes nor did I need to attend because I took the lump sum payment when I retired. They graciously allowed me to attend the meeting.

I did hear some discussion that gave me comfort. It was stated there are no plans to change the health or death benefits for retirees. There was also a discussion about recent letters sent to salaried employees about confirmation of Medicare cost repayments. A confirmation letter must be sent to the benefit center by May 30 with documentation of Medicare costs to assure that the benefit continues. The discussion was that the reimbursements will be made quarterly. We have received deposits from the RRAs, but didn’t see any reimbursement at the end of the first quarter. Maybe that is coming at the end of June? It was suggested to call the benefit center to verify they have received the needed documents before the end of the month if you haven’t received a letter of confirmation.

Back to the changes in the retirement plans, the IRS is being asked to approve transfer of the plans to an insurance company. It is expected the IRS will issue a ruling in 12 months or so and, if approved, the completion will be in 18-24 months. Everyone, including those who have not yet reached the age to receive benefits, will be able to decide whether to take a lump sum or an annuity. The lump sum would be based on benefits earned, life expectancy, and interest rates. Spousal approval will be required. Financial advisors will be available to help make this important decision. Wells Fargo will continue to issue payments to those who have a current annuity until the process is completed. There was an appeal to keep the benefit center informed of address changes.

As an aside, I received an email that discusses DOE’s Office of Legacy Management obligations to the pension fund that is pertinent to this message. “At this time LM funds will be needed to meet its pension obligations, but the fund currently exceeds the anticipated liabilities.” The email goes on to state that any requirement to fund retirement obligations “. .  . would likely target DOE’s-USFWS (the Fish and Wildlife) visitor center.  .  .”

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