2004 VEBA Issue

RESULTS!

The Brothers and Sisters voted not to pursue the VEBA allocation option for 2005. The allocation proposal was defeated 46 NO to 24 YES votes. The Local experienced a very good turnout for the vote with almost half of the memberhsip of Local 1171 determining the fate of the proposal.

According to the VEBA rules and the policies of the City, the Firefighters will have the option each year of deciding whether or not they want to make changes in the allocations found on the total compensation array. If the memberhsip wishes, this issue can be brought forward again in 2005.

Brothers and Sisters,

A significant number of Union members have responded positively to polling recently conducted on A and C-Shift regarding an option to allocate funds to our individual VEBA accounts. Therefore I have called for a special election to be held on November 29, 30 and December 1. The polling place will be Station One and members will vote in the morning after their work shift. Due to the late notice of this special election because of the deadline of December 6 mandated by the City to declare a new allocation, there will be no meetings between now and the voting dates, nor will absentee ballots be available.

The single question on the ballot will be whether or not members wish to participate in the VEBA program funded at an amount of $25 per month.

I personally apologize for the late notice on this special election. I was not informed that this VEBA option was available to us until several days ago. I have moved as quickly as possible to determine if there is interest in the issue, and thanks to polling conducted by Vice Presidents McLaughlin and Peterson, I have determined that we need to address the issue via special election.

Briefly, VEBA is a program whereby members maintain individual accounts which contain money set aside by the member for primarily medical related uses, one of which can be to pay for medical insurance premiums. Money is allocated from a member's total compensation in an amount that is determined by the entire bargaining unit. The money is pre-tax when deposited into the VEBA account. The VEBA account funds cannot be accessed until the member retires and/or reaches 50 years of age and is no longer employed by the City. The VEBA funds can only be used for medical related purposes.

For more information on the VEBA allocation, pros and cons, please contact your Shift Vice President, or me.

Gary Niblock, President

01/08/05