NNSA Briefing to LANL Employees Los Alamos National Laboratory Management and Operating Contract June 10, 2005. SEB Chairman C. S. Przybylek (Tyler Sha-bell-ik) Human Resources Specialist Roberto Archuleta Contracting Officer Michael Loera. Agenda. Status of Current Contract Path Forward
Sep 30, 2005
NOTE: Dates shown below are proposed and not firm.
Winner of the competition proposes a new compensation package for Transferring Employees and submits substantially equivalent Pension Plan One for NNSA Contracting Officer approval.
Sixty day window during which current employees will have the opportunity to chose which approach best fits their needs and plans
Transition Activities Completed
Winner of the competition proposes a new compensation package for New Employees and submits Pension Plan Two for NNSA Contracting Officer approval.
Pension Plan Two(Covers New Employees including Inactive Vested Transferring Employees and UCRP Retiring Employees hired by the Contractor)
Current Employees have Three Choices
Seek to Continue Working At LANL
Elect to Leave LANL
Desire to Continue Working At LANL
Employment Status with Successor
If Rehired by Successor, Becomes “New Employee”
Automatically hired by Successor, Becomes “New Employee”
Automatically hired by Successor
Status of Leave Balances
Status of Accrued Service Credit
Covered by Pension Plan One
Covered by Pension Plan Two
Covered by Pension Plan Two
Rolled over to Pension Plan One
Employee Receives UCRP Benefits *
Employee is an Inactive Vested Member of UCRP *
Employee’ s Status in UCRP
* Employees encouraged to contact UC/LANL regarding requirements and benefits.
Please explain H-36, Section B-H, p.26,(a) (2) (i) of the RFP. Does it mean that employees have six months from June 1, 2006, to Dec. 1, 2006, to determine their permanent status? If so, I'm confused because elsewhere, the Fact Sheet states: "May 31, 2006, Transition period ends."
Response: The employees must exercise their option to retire or become an inactive vested participant of UCRP by May 31, 2006.
The RFP wording was intended to cover those employees who may be asked by the incumbent contractor to perform “phase-out” support should the “Continuity of Services” clause under the predecessor contractor’s contract become effective. Should such a situation arise, the Contracting Officer will deal with this situation on a case-by-case basis under the new Contract. To avoid further confusion, the SEB is considering amending the RFP H-36, subparagraph (a)(2)(i) as follows: ““Transferring Employees” are those employees who transfer from employment with the predecessor contractor to employment with the Contractor on June 1, 2006.”
Paragraph (a)(2). In the LANL RFP there appears to be an inconsistency on page 35, Section H-36. This is where the RFP states:
(i) “Transferring Employees” are those employees who transfer from employment with the predecessor contractor to employment with the Contractor within six (6) months after June 1, 2006 and without a break in their employment at LANL.
(ii) “Inactive Vested Transferring Employees” are transferring employees who do not elect to retire under the University of California Retirement Plan (UCRP) prior to June 1, 2006 and who remain vested participants as “inactive members” of the UCRP.
(iii) “UCRP Retiring Employees” are employees of the predecessor contractor who elect to retire under the UCRP prior to June 1, 2006.
(iv) “New Employees” are those employees hired by the Contractor on or after June 1, 2006, who are not Transferring Employees.
It appears that there is no transfer period for employees to decide whether to retire with UCRP or not, since they must retire before June 1, 2006. Essentially, the Transferring Employees do NOT have 6 months to decide whether to transfer to the new contractor or retire with UCRP or to go to Inactive status under UCRP. Basically, the only option available to them is to transfer from employment with UC to employment with the new contractor (or quit altogether). They can NOT elect to retire with UCRP or go inactive with UCRP during the 6 months that are allotted to the Transferring Employees since these options must be elected prior to June 1, 2006. Is this correct? Is this what you intended? If this is correct, what is the point of giving the LANL employees 6 months to decide whether to transfer or not if the two most important options are not available to them?
Response: The new benefits packages will be rolled out during the transition period allowing the employees at least 60 days to evaluate their options. Employees will have to exercise their options prior to the end of the transition period, May 31, 2006.
I have a basic question on Section H-36, part (d) (6) (ii) on page 40 of Section B-H of my Word file. It says (and I quote): When the total RV and/or per capita cost exceed the comparator group by more than 5 percent, as required by the Contracting Officer, the Contractor shall submit for approval corrective action plans, including a timeline, to achieve a net benefit value and per capita cost not to exceed the comparator group by more than 5 percent. Does this apply to existing pensions of transferring employees? In other words, does this mean in one year after the award of the contract that the new contractor has the possibility of substantially reducing a LANL employee's pension based on what the current market is for pensions? Or does this only apply to non-pension benefits? It seems to me that this is in direct opposition to Section H-36, part (e) (3) (i) that states that: Pension Plan One. The Contractor shall consider amending Pension Plan One to be consistent with any changes made by the Board of Regents of the University of California to the UCRP during the term of this Contract. For Transferring Employees (not including Inactive Vested Transferring Employees), Pension Plan One shall include UCRP age factors, preserve accrued benefits and recognize service credit earned under the predecessor contractor's retirement plans including the UCRP. In this paragraph, it clearly states that transferring employees will be guaranteed UCRP age factors. Nowhere does it state that this only applies for the first year of the contract. Is this guarantee only for one year or does it apply to the contract lifetime of 7 years? Any help you can give me would be greatly appreciated.
Response: Paragraph (d)(1)(i)(II) states in part that Paragraphs (d)(6)(ii) – (iv) below do not apply to evaluating the reasonableness of benefits for Transferring Employees. Thus, the corrective action plans associated with the ben/val study and per capita cost survey are not applicable to Pension Plan One for transferring employees. With regard to the question related to the guarantying pension benefits, the actual benefits will be negotiated between the new Contractor and the Contracting Officer during the new contract’s transition period.
Regardless of what organization is awarded the LANL contract, will LANL employees who retire before the current contract expires on 9/30/05 remain in the University of California Retirement Program (UCRP) after the new contract takes effect or will they be transferred into some other pension plan?
Response: LANL employees who retire before the current contract expires will remain in the University of California Retirement Program (UCRP).
Will ALL those UC employees currently eligible to retire from UC with medical benefits continue to receive such coverage under the new contract. Specifically, there is a tiered level of medical coverage for employees with less than 20 years of service. For example, for someone with 15 years of service, the UC employer contribution will be paid at 75% and the UC retiree pays the difference. If someone retires under that condition, what will happen with a new contractor when the medical coverage is taken over?
Response: Retiree health care will be provided by the successor (new) contractor. See Clause H-36, paragraph (i) “Post Retirement Benefits.” The benefits under the new contractor’s plan are required to be “substantially equivalent to those provided by the predecessor contractor.” The actual benefits will be negotiated between the new contractor and the Contracting Officer during the new contract’s transition period.
The RFP is very unclear about retiree health care. I am already retired from LANL under UCRP. Will future retiree health care be provided by UC or will it be provided by the new contractor?
Response: Retiree health care will be provided by the successor (new) contractor. See Clause H-36, paragraph (i) “Post Retirement Benefits.”