| Preserve Defined Benefit Pensions |
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The global financial crisis has resulted in an
unprecedented drop in pension plan assets, threatening the retirement
security of millions of active and retired workers. |
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The average pension plan
suffered a 26% decline in 2008, the worst in recorded history. Even well
managed plans that were prudently invested could not avoid the dramatic
loss in value that has occurred as a result on the global financial
meltdown. |
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The ambitious funding requirements of the Pension
Protection Act of 2006 will require either unsustainable contribution
increases by employers or deep cuts in benefits for workers. |
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The contribution increases mandated under the PPA, while
perhaps well intentioned when enacted, would jeopardize the financial
viability of thousands of contributing employers. The joint efforts of
labor and management were an important factor in the development of the
multi-employer provisions of the PPA, and we remain committed to the
Act’s fundamental goals. However, the rules must reflect the reality of
the current crisis. |
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The exponential contribution increases mandated under
the PPA could make the economic crisis worse. |
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During these trying economic times, contributing
employers need cash to pay employees and make job-creating capital
investments. Forcing unexpectedly large contributions to meet rigorous
funding requirements will force many to consider terminating their plans
or reducing benefit accruals. |
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| We appreciate the relief provided in
The Worker, Retiree, and Employer Recovery Act of 2008. |
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This critically important
legislation permitted multi-employer plans to elect to freeze their
current funding certification for one year and extended the current
funding improvement period for plans that have them by three years. We
applaud the bipartisan support this measure received in both the House
and Senate. |
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| Status: |
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The committees of jurisdiction in both the House and
Senate have not yet begun consideration of this issue. |
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| Boilermakers’ Message to Congress: |
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Build on the pension relief measures enacted in December
2008 and reform pension funding rules to protect the retirement security
of millions of workers. Ensure that plans have the tools necessary to
weather the current financial storm and deliver the benefits workers
deserve. |
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| Back to Politics Page |
| Information provided by:
International Brotherhood of Boilermakers · Department of Government
Affairs 703-560-1493 office ·
www.boilermakers.org |
