President’s Report for July 12th, 2010 General Meeting:
Second Kootenay Zone meeting in Creston in April 22nd


* See also, Branch Report & Review Commission Update for other items

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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