Pension changes at issue in nurses’ dispute at Claxton-Hepburn

Related: Images: February 2008 Union Events

OGDENSBURG, Feb. 25, 2008 – Proposed pension plan changes are the main issue in a contract dispute between registered nurses and Claxton-Hepburn Medical Center management.

The medical center’s CEO has claimed the offer is “fair” and the benefits are “rich.” But the nurses’ collective bargaining representative, the New York State Nurses Association, said the proposal will be financially damaging.

In protest, the RNs will conduct an informational picket on Thursday, Feb. 28, from 11 a.m. to 2 p.m., in front of the hospital at 214 King Street. The most recent three-year contract for the 167 RNs expired on Jan. 31, 2008

The Nurses Association contends that:

Although medical center management offered RNs a 6% increase in wages, it’s proposal would also require a 4% contribution from RNs to receive a full retirement benefit. This would result in only a 2% increase in wages, which is less than half the 2007 increase in consumer prices.
Most RNs will retire at age 65 but their life expectancy will be age 87 for women and 82 for men. If they’ve received, on average, a 3% annual wage increase and a 5% annual return on investments and contributed 4% per year to their pensions: a 43-year-old female with 19 years service will have $265,300 less in retirement income; a 53-year-old male with 27 years of service would have $117,600 less, and a 55-year-old female with 24 years of service would have $86,600 less.
For an equal “replacement” plan, the hospital would have to contribute between 10.75% and 16.5% of RNs’ annual compensation – for most RNs the range would be between 13% and 14%. However, under management’s proposal, the medical center would contribute a maximum of only 5%. But in order to qualify for the full 5%, nurses would be required to contribute 4%, which many cannot afford. The Nurses Association did offer a compromise, but the hospital refused.

The Nurses Association estimates that 53% of the RNs have been with the medical center for 10 years or more, with 22% having more than 20 years service. They are relying solely on the medical center for their pension – unlike transient top administrators, who have less than five years service and also tend to carry pensions from previous positions.

With more than 36,000 members, the New York State Nurses Association is the nation's oldest and largest state nurses’ association. NYSNA fosters high standards of nursing education, research, and practice; engages in legislative activity; and provides collective bargaining services to registered nurses. Its mission is to advance the profession of nursing and protect the public's health.

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