You think its bad for PAT now, it's about to get A LOT WORSE! (Republic: requirements, charge)

[BrianTH]

Originally Posted by robrobrob

So, practically speaking there is no way to scale back the legacy costs. Unless, there are savings that come from retiree health insurance premiums? I have to be missing something. Where is Corbett and Fitzgerald hoping that that legacy costs savings come from?

I think when they are using the term "legacy cost", they are mostly referring not just to vested retirement benefits, but also retirement benefits that will be acquired in the future. The latter category can be cut in a new labor contract, like any other terms of future compensation.

[eschaton]

Originally Posted by robrobrob

So, practically speaking there is no way to scale back the legacy costs. Unless, there are savings that come from retiree health insurance premiums? I have to be missing something. Where is Corbett and Fitzgerald hoping that that legacy costs savings come from?

If the union agreed to pay 50% of their premiums would the retirees would have to do the same?

Although some unions allow retirees to remain members, they are not subject to collective bargaining agreements upon retirement. The collective bargaining agreement offers no protection to them at all, with regulations (federal for private workers, state in this case), ensuring that the pension payments must be paid. A union can bargain for a cost-of-living adjustment for existing retirees, but they cannot bargain to lower the benefit in any way, as benefits are considered vested in the year they accrue.

Workers cost share on retiree health care costs are not covered under any state law, AFAIK. That said, precedent treats these as if they are pension benefits, so even if a union agrees that new hires have lower levels of benefits, it's typically not applied to current retirees.

That said, it has to be stressed that raising the premium share so high would effectively make the retirement age the date Medicare eligibility, rather than the actual age specified in the pension plan.

[BrianTH]

By the way, I wonder if you could do something like ask current employees to partially bail out PAT by contributing money to the retirement funds in exchange for no benefits. I have no idea if that is even legal (there are a lot of laws regulating what you can and cannot do as far as retirement funds are concerned), but so far it is the only way I can come up with that current employees could potentially agree to help out with PAT's actual legacy costs.

[eschaton]

Originally Posted by BrianTH

By the way, I wonder if you could do something like ask current employees to partially bail out PAT by contributing money to the retirement funds in exchange for no benefits. I have no idea if that is even legal (there are a lot of laws regulating what you can and cannot do as far as retirement funds are concerned), but so far it is the only way I can come up with that current employees could potentially agree to help out with PAT's actual legacy costs.

You can do this for retiree healthcare through a VEBA (the UAW did this with the Big Three in 2007). It's illegal to do do this with pensions.

[pman]

Portland's TriMet transit agency is eliminating its free rail zone in downtown Portland effective Sept. 1. The free zone was introduced by the agency in 1975 to promote the use of transit in light of air quality issues in the city. The change is expected to generate nearly $3 million annually in additional fare revenue.

The agency is also eliminating the zone system at the same time. Beginning Sept. 1, a systemwide, single ride ticket will be $2.50 and a single day pay will be $5.00. The zone system was originally created to keep fares affordable for minority and low-income riders who lived in the central city... travel and population patterns have changed and the zone system is no longer necessary for the city

Portland's TriMet eliminates free rail zone - TRAINS Magazine

[pman]

Port Authority of Allegheny County, transit union have contract deal - Pittsburgh Post-Gazette

[Blackbeauty212]

Let's see what happens.....

[BrianTH]

Hopefully the state has privately signed off on the deal as well, in which case the only remaining hurdle would be the member approval.

[robrobrob]

I would hope that the Port Authority management would only agree to a deal if the deal would be approved by Corbett.

[BrianTH]

Originally Posted by robrobrob

I would hope that the Port Authority management would only agree to a deal if the deal would be approved by Corbett.

It is possible (although I hope not likely) that Corbett would refuse to actually give approval in advance.

But yes, if approval from Corbett was in fact obtainable, one would hope they obtained it.