PLATTSBURGH -- CVPH Medical Center employees from 1190 SEIU ratified a three-year labor contract that ensures they will continue receiving pension benefits.

The more than 1,200 Service Employees International Union members gave their "overwhelming" approval Thursday night, following 10 weeks of negotiations between union representatives and hospital administrators, said 1190 Local Chairman Roger James.

"I've been involved in negotiations for the last several years, and this has been one of the best sessions I've been a part of. I'm very pleased with the progress we've made and feel it's a win-win situation for all of us."

HARD TO SAVE

The pension issue was of major concern to employees, who feared the hospital would be eliminating its pension plan in favor of an employee-based 403B savings plan -- similar to a 401K plan that for-profit companies use.

Registered nurses and other members of the hospital's New York State Nurses Association labor union agreed to a contract last year that eliminated the pension plan in favor of an employee-based savings plan that was supported by employer contributions.

But negotiators for SEIU, which represents a large portion the hospital's staff, including licensed practical nurses, technical staff, nutrition and environmental-services staff and other skilled workers, refused to let the pension plan slide.

"The 403B plan is like a savings plan and is meant for people with a higher income," James said. "A lot of our members can't afford to put money into the plan. It's hard enough just trying to make ends meet."

NEW PENSION PLAN

The traditional pension is a single-payer plan, meaning that CVPH Medical Center was solely responsible for meeting the needs of the retirees.

"It was a struggle for us each year to evaluate expenses," said Joyce Rafferty, vice president of finances at CVPH, noting that the pension plan might require $1 million in funds one year and $8 million the next.

By freezing the current plan as of June 5, the hospital will be able to reinstate a new pension plan beginning January 1, 2009.

The new plan is part of a much larger SEIU Pension Fund that includes 12,000 employers and 250,000 members statewide.

"It's a very attractive and exciting option," said Noreen Brady, vice president of human services for the hospital. "We realize that not everyone will be able to contribute to the 403B plan, but this alternative works very, very well."

About half of the SEIU employees participate in the 403B plan, and the hospital now contributes a one-third match of the employees' contributions. Employees can continue in the 403B plan, but the hospital's match will end when the new pension plan is enacted.