DOE PULLS PLUG ON PLAN TO STOP REIMBURSEMENT OF CONTRACTOR CONTRIBUTIONS TO EMPLOYEE DB PLANS

In a victory for NAPO and public employee groups across the nation, the Department of Energy (DOE) decided not to go forward with a controversial cost-cutting proposal that would have stopped reimbursement of contractor contributions for some defined benefit (DB) and medical plans for new employees.  Under the proposed initiative, the DOE would have limited future DB plan reimbursements to existing employees and retirees only. 

The plan came under fire from pension, labor and business groups, including NAPO, after it was announced last year.  NAPO firmly believes that the DOE’s April 2006 proposal threatened to undermine the financial stability of Federal contractors’ existing DB pension plans, as well as restrict the ability of employers to fashion retirement plans that best address their unique needs and those of their workforce. 

To read NAPO’s letter of opposition to the DOE’s proposal, please click on the link below. 

[click here for pdf]