TRANSIT SUPERVISOR - RECOMMENDATION

VEBA ballots have been mailed to you with three options for your

consideration.  A majority vote of any of the three options will

determine future participation in the VEBA program. Any options of the

VEBA vote receiving a majority vote will be implemented for three years

effective January 2010 through December 2012.

       Option 1:  Continue mandatory VEBA for retiring employees funded

by 35% of sick leave balance cash-out at retirement?

Option 2:  Institute a mandatory VEBA provision for retiring

employees funded by 50% of vacation leave cash-out upon

retirement?

       Option 3:  Institute a mandatory VEBA provision funded by a $50

per month, tax exempt, contribution from each   member of the bargaining

unit?

Example:  A majority vote for Option 1 and 3 would institute a 35% sick

leave cash-out at retirement and a $50 per month, tax exempt,

contribution from each member of the bargaining unit.  A majority vote

for any or all options institutes that option of VEBA.

It is the recommendation of the Supervisor Policy Committee that each

member weigh the impacts carefully.  Only Local 17 members retiring

within the next three years will be covered under Options 1 and 2.  For

this reason it is imperative that our soon to retire Local 17 members

vote their preference.  Option 3 will impact all Local 17 members for

three years.  Any VEBA Options receiving a majority vote will be up for

vote again in 2012, should VEBA receive all no votes in 2012, Option 3

funds contributed between 2010-2012 will be set aside for use at

retirement.