President’s Report for July 12th, 2010 General
Meeting:
Second Kootenay Zone meeting in Creston in April 22nd
~ ~ ~ ~
Good morning, EVRTA members,
The following message has been sent to the Presidents of the 5 other Branches in the Kootenay Zone. Please note that on advice from Keith Coates, and with permission from Mike Bruschetta (motion) and Len Kosiec(seconded), the motion was reworded to clarify our intent. Therefore, they will propose an amendment to their original motion to be voted on at our AGM/THWTB Breakfast Sept. 7th.
Hello (Branch President),
Members of the Elk Valley Retired Teachers' Branch have asked me to contact
you with the request that when your Branch next meets, you add discussion of
the following motion to your agenda:
"
The EVRTA requests that the BCRTA amend policy on Inflation Adjustments by
replacing the across the board percentage increase with a dollar amount per
retiree, in order to correct the increasing inequity between lower and higher
pensions:".
Although this is not a new argument, it is evident that, while retired
teachers are generally characterized as "financially and medically secure",
it is not true for everyone. There are retired teachers with small pensions
and limited household incomes whose financial insecurity is exacerbated
by the fact that the income gap widens as smaller pensions become relatively
smaller and the larger ones become relatively larger with compounding inflation
protection
increases.
The following table shows the difference in incomes with a 3% inflation protection
factor based on $20000, $30000, $40000 and $50000 pensions after 10, 20, and
30 years:
Pension |
3% |
3% |
3% |
3% |
$20000 |
$30000 |
$40000 |
$50000 |
|
10 years |
$26878 |
$40317 |
$53757 |
$67196 |
20 years |
$36122 |
$54183 |
$72244 |
$90306 |
30 years |
$48574 |
$72818 |
$97090 |
$121363 |
The retiree starting with $20,000 has an income of $48,574 after 30 years,
whereas the retiree starting with $50,000 has an income of $121,363.
While the difference
in income at the time of retirement was $30,000, the difference after 30
years will be $72,789.
From the time teachers retire, we all have a basically fixed income and
must contend with the same inflation-related prices for food, shelter,
etc. Whereas
the retiree beginning with a $50,000 pension has an additional $71,363
to deal with these costs after 30 years, the retiree whose pension began
at $20,000 has
to contend with these same costs with just $28,574. This hardly seems fair.
Please let us know if the members of your Branch support the motion, and
if they recommend that we bring this motion to the floor of the BCRTA AGM
this September.
For further information, please call or email me:
Jannice E. Caufield, President
Elk Valley Retired Teachers’ Association
Box 376, Fernie, B. C. V0B 1M0
250-423-6168