The MBTA’s largest union filed a lawsuit difficult an arbitrator’s award that may make sweeping adjustments to the T’s $1.9 billion retirement system.
Among the adjustments the Boston Carmen’s Union Local 589 is difficult is a hike within the retirement age, which might affect when staff turn out to be eligible for full pension advantages.
In a grievance filed in opposition to the MBTA, the union mentioned the arbitrator’s award “throws the entire pension into a state of financial chaos and leaves members and pension administrators alike unable to determine when they may retire and how much money they will receive.”
“We are continuing to work with MBTA management to continue ongoing discussions about various administrative matters regarding benefits, and those conversations have been productive,” mentioned Jim Evers, Carmen’s Local 589 president, in an announcement.
“The court filing was an interim measure intended to ensure the parties had time to continue that productive dialogue and to establish the necessary framework that would help retention, riders, the community, and workers.”
Evers mentioned the representatives from the union and MBTA met as just lately as final Friday and are persevering with to actively meet to hammer out a remaining settlement.
Under the arbitrator’s determination, staff must be at the very least 65 years outdated, quite than 55, upon retirement to be eligible for regular pension advantages. This would translate to 2.46% of highest common primary pay earned throughout three consecutive years of service.
MBTA spokesperson Joe Pesaturo mentioned the T “immediately stepped up negotiations” with the Carmen’s Union after understanding how “dramatic” the adjustments could be for workers, and is working to achieve a remaining settlement that’s mutually useful for each side.
“The MBTA is strongly committed to working closely with union leadership to refine the pension agreement and ensure the long-term viability of the pension plan for current employees, as well as future generations of T workers,” Pesaturo mentioned.
Currently, staff are eligible for full advantages at age 55 with 25 years of service. Employees employed earlier than Dec. 6, 2012, are eligible beneath a previous construction, the place they will attain full retirement after working for 23 years.
The long-standing “23-and-out” coverage, outlawed in 2009, allowed for a slew of early retirements.
Source: www.bostonherald.com”