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Trade Unions and Pension Issues
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Archives 2007 to 2008 -
Also see our sites on Social
Security Issues, Private Pension
Issues
and World Pension Issues
California Can’t Afford a Symbolic Divestment Fund that Won’t Affect Human Rights (April 9, 2008)
Arnold Schwarzenegger opposed a pension fund bill banning the two largest public pension funds from investing in funds that have partnerships with ‘sovereign wealth funds.’ According to the California governor, this measure doesn’t really make sense, for different reasons. The main one is that the costly measure wouldn’t influence lawmakers and secondly, that its effect on human rights would be limited since few people hold investments in such funds.
Teamsters
and U.P.S. Reach Deal on Pensions (October 1, 2007)
On
September 30, 2007
, the Teamsters reached an agreement with the United Parcel Service.
Thanks to this agreement,
UPS
is allowed to withdraw from the Central State Pension Plan.
UPS
must first pay $6.1 billion to shore up the pension plan. But by
withdrawing from the plan,
UPS
expects to save money. According to
Ken
Hall, director of the Teamster’s
UPS
division, this agreement is a ‘great deal’ for pensioners.
Nevertheless, actuaries estimate the plan is under-funded.
What will this great deal mean to the rank and file?
Stay tuned.
Powerless, Retirees Fear Losing Benefits (July 17, 2007)
As American car manufacturers face financial troubles, retirees face the possibility that current workers will elect to cut their benefits in the upcoming United Auto Workers union contract talks. Current workers say that they have not forgotten the sacrifices retirees made during their careers, but as retiree Ray Bailey puts it, "we took benefits instead of wages a lot of times, so our feeling is we've already paid for our benefits. Why should [current workers] be able to take it away?"
2 Teachers Sue Union over Retirement Plan (July 17, 2007)
Two schoolteachers are suing the National Education Association (NEA) for recommending a certain retirement plan in return for compensation from the plan managers. The fees collected to pay those “bribes,” the teachers allege, decreased the returns earned by the NEA’s own members. Who will advocate for workers’ rights if their own unions turn against them?
Labor Reform Legislation Would
Increase Health, Pension Coverage (May 1, 2007)
The Senate is expected to vote soon on the Employee Free Choice Act. This bill would allow the use of a majority sign-up system for union representation; this system already exists in some provinces in Canada and explains the higher rate of unionized workers (about 30 percent vs. 12 percent in the US). The Institute for America's Future revealed that “if the Employee Free Choice bill was enacted, union membership would increase by about 10 percent — thus increasing the pool of workers who are more likely to get access to employer-paid health insurance and retirement benefits.”
Report: The Recent Trend towards Later Retirement (March 2007)
While senior citizens would appear to have left the workforce, many policies now focus on raising the retirement age. At present, early retirement no longer seems a conventional path. Retirement ages in the US have stabilized and
apparently have reversed, with women in their late middle age increasing the labor supply. As the US and corporations change some of their policies, private pensions, and the provision of health care, older persons and their families feel increased uncertainty about their futures. The writers suggest that people may work longer to offset these
worries, delaying their retirement in order to work and save more.
Big Deficit Seen in New Jersey Pension Fund (March 16, 2007)
Public employees’ unions have long accused the New Jersey government of mismanaging its pension fund. Many public pension funds use traditional actuarial practices, namely pension calculations pay attention to what age people retire; the later people leave, the more generous their pension will be. Financial experts and economists say that this actuarial calculation is the cause of the problem: “the state has been underestimating how much money it should have to pay for retirement benefits that have been promised to employees.”
Retirement Security Survey Report (February 2007)
This AARP report underscores US confidence, as expressed in a public opinion poll, for Social Security programs. Some 85 percent think that “Social Security should remain a program that provides a predictable benefit without investment risk.” At the same time, contradictory findings show that people would like to keep other retirement income vehicles such as IRA, 401(k), carve-out private accounts and add-on accounts, some of which would compromise existing Social Security. The survey also reveals views on potential changes in the social insurance program: Formula change, raising retirement age, increasing the wage cap, investment funds, increasing payroll tax, modifying price indexing, longevity indexing or 5% cut for new retirees.
Convicted Lawmakers to Lose Pensions (January 12, 2007)
The Senate approved a measure to disqualify Members of Congress from their taxpayer-paid pensions if they were convicted of serious crimes. Senator John Kerry said “there were at least 20 lawmakers convicted of serious crimes receiving pensions, some as high as $125,000 a year.” Currently a lawmaker can lose his pension in case of treason or espionage. The amendment intends to counter bribery, conspiracy to defraud the United States and perjury. In exchange, the guilty member of Congress will get refunds of any personal contributions and retain benefits from 401(k)-type plans.
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