No Increase Since May, 2000

UE Calls on GE to Increase
Retirees' Pensions

General Electric retirees deserve "an immediate and substantial pension increase," says UE. In a March 4 letter (reproduced at right), UE President John H. Hovis reminds company officials that "It has now been nearly three years since General Electric has seen fit to adjust the pensions of its retirees."

Since that last pension adjustment, on May 1, 2000,consumer prices have risen by nearly 6 percent and Medicare premiums have increased, Hovis points out. Retirees have also sustained substantial increases in optional GE medical plans. Participation in the GE Medicare Insurance Plan now costs $156 a month for a retiree and spouse.

'PITIFULLY
INADEQUATE PENSIONS'

As of December 1999, the average pension of 77,000 hourly retirees was only $553 a month; 12,000 surviving spouses of hourly employees were receiving an average pension of only $260 a month. While those averages have improved somewhat since then, Hovis says, "nevertheless there are still many thousands of GE retirees and spouses trying to get by on pitifully inadequate pensions."

Hovis declares, "To say the Company can afford a substantial increase for pensioners is an understatement. Despite three years of stock market declines and record low interest rates, the giant GE Pension Trust is overfunded by nearly $5 billion."

'TANGIBLE RECOGNITION'

GE can and should adjust retirees´ pension benefits, Hovis maintains. "We would remind the Company that its ongoing financial success is due in large part to the contributions of thousands of retirees over many years. We believe it is high time that they receive tangible recognition for those contributions."

Hovis also urges a substantial increase to the minimum multiplier, the formula used to calculate the benefit amount.

(This article was previously posted in UE News Update)

March 4, 2003
Dennis Rocheleau, Manager
Union Relations
General Electric Company
3135 Easton Turnpike
Fairfield, CT 06431

Dear Mr. Rocheleau:

It has now been nearly three years since General Electric has seen fit to adjust the pensions of its retirees. Since the last increase on May 1, 2000, consumer prices have risen by nearly 6%. Retirees have also endured increases in Medicare premiums since that time, as well as substantial increases in optional GE medical plans. Participation in the GE Medicare Insurance Plan for example, now costs $156 per month for a retiree and spouse.

In addition, employees who retired after June 1, 1997 have received no pension increase of any kind. Accordingly this group has lost up to 13% in purchasing power since retirement. Moreover the last increase did not affect the minimum pension multiplier applicable to retirees, which remains at mere $18.00 per month times years of service.

Three years ago, during the last set of National Contract negotiations, based on company data as of the end of 1999, we showed that the average pension of 77,000 hourly retirees averaged only $553.00 per month, and that 12,000 surviving spouses of hourly employees were receiving an average pension of only $260.00 per month. These averages have no doubt improved somewhat since then. Nevertheless there are still many thousands of GE retirees and spouses trying to get by on pitifully inadequate pensions.

To say that the Company can afford a substantial increase for pensioners is an understatement. Despite three years of stock market declines and record low interest rates, the giant GE Pension Trust is overfunded by nearly $5 billion. As you know, GE has not contributed a penny to the fund since 1987.

It has also been reported that the fund contributed another billion dollars or so in pension "earnings" last year which was added to GE’s profit figures.

We would remind the Company that its ongoing financial success is due in large part to the contributions of thousands of retirees over many years. We believe it is high time that they receive tangible recognition for those contributions.

We call on the Company to grant to its retirees an immediate and substantial pension increase and to increase substantially the minimum multiplier as well.

Very truly yours,

John H. Hovis
UE General President