FYI. Attached is the language of the MOU Settlement Terms ratified by members of APL, POOL and STU on November 3, 2014.
The next step is for the class action lawsuit to be filed by the Library. It has to be settled by July 1, 2015. I will provide more details once informed by our attorney for the UAW.
In response to questions posed by members:
Today the judge ruled on the bankruptcy. It is expected that details on paying the annuity clawback will be revealed by the GRS (General Retirement System). From what the GRS has said in the past:
- If you haven't taken your money out of your GRS Annuity account yet, the clawback amount will be debited from your existing annuity account.
- If you have taken your money out of your GRS Annuity account (working or retired), you will be given the option of paying the clawback in a lump sum by a certain date or having the clawback amount taken out of each of your pension checks proportionally (with 6.75% interest) for your lifetime.
- When the GRS announces the details, I will post.
- GRS is located at 500 Woodward Ave., Suite 3000, Detroit, MI 48226. Telephone 313-224-3362 or email www.rscd.org
Should I retire before the end of the year?
Per the settlement terms, those who are currently retired or will be retired by December 31, 2014, are called Pre-2015 retirees. If this applies, you will be included in the City's VEBA plan and you will receive $875.00 (up to $1475.00) annually (for 17 years) from the Library for health care (details to be determined).
Note: health care costs are an important factor is determining whether or not to retire. If you are eligible for Medicare now or will be by the end of the year, you may want to evaluate whether or not to retire by the end of the year. I would personally suggest that you (or a financial advisor) compare the financials for retirement by the end of the year vs. retirement after the end of the year.
The GRS will provide you with a "Benefit Estimate" statement upon request by phone or in person.
You will also need to contact DPL's HR dept. to obtain a "Retirement Notice" letter (this letter can be withdrawn if you decide not to retire before the dates requested go into effect).
What if I retire after the end of the year?
Per the settlement terms, those who retire after the end of the year, beginning January 1, 2015, are called Post-2014 retirees. If this applies,you will not be included in the City's VEBA and you will not receive $875.00 (up to $1475.00) annually (for 17 years) from the Library for health care costs. You will receive $125.00 a month from the Library for 5 years from the date you retire if you retire before the CBA (Collective Bargaining Agreement, AKA "the contract") expires June 30, 2017.
I hope this helps. Laurie Stuart, President, UAW LU 2200