diet coke for breakfast

Wednesday, August 27, 2003

Posted by RFTR
Yale Strike - "Some workers and students had started a picket line Tuesday in front of the school's investment office and yelled slogans such as 'What do we want? Decent pensions! When do we want it? Now!'"

I go to the best school in the world. Just to let you all know, this is the chant they chose, and below is the pension offer made to them, as summarized in an open letter to the Yale Community from Yale President Richard Levin:

Unlike faculty whose contributory pension accounts fluctuate with the stock market, unionized staff members have a "defined benefit" pension plan, wholly funded by the University. This assures them a guaranteed annual pension that is linked to their highest salary in the five years prior to retirement. All staff members also receive Social Security, because Yale and each individual make contributions every pay period. After Yale's increased offer last week, an employee retiring with 30 years of service at age 65 or older will have after-tax retirement income, from the defined benefit plan and Social Security, between 83% and 93% of his or her final after-tax salary.

Altogether, Yale's offer represents a 16% to 20% increase in the multiplier used to calculate the defined benefit pension. When combined with the salary increases we have offered, this means that an employee retiring the day after new contracts take effect would receive a Yale pension that is 23% to 31% larger than it would have been the day before new contracts take effect.

In addition, Yale is offering to keep in place the supplemental voluntary retirement program that it introduced in 1996. In this plan, the University matches the contributions of individuals dollar-for-dollar up to 4% of salary. Employees participating in this plan for thirty years could expect, conservatively, to see an additional after-tax retirement income equal to 15% of final after-tax salary from Yale's contributions alone.

That sounds like a pretty sweet deal, and I think significantly better than just about any other union labor gets.


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