Pension Action E-Newsletter

Below is our most recent Pension Action E-newsletter

Pension Action E-Newsletter

Don’t give corporations a free lunch!
Tell Congress that if they give companies a break on making contributions to pension plans, employee protections must be included!

Tomorrow - Wednesday, March 17th - the House Committee on Ways and Means will be voting on the Small Business and Infrastructure Jobs Tax Act of 2010, which includes provisions that give companies a break on making contributions to their pension plans. Tell Congress that any legislation that provides "funding relief" must also include protections for the employees and retirees covered by these plans. There should also be strict limits on executive compensation. Take action now.

Companies are saying that they need pension funding relief because of the economic downturn. They say they will use the money that otherwise would be contributed to pension plans to save jobs and to pay for other immediate company needs.
 
Congress needs to know that pension plan funding relief is not free. Funding relief is effectively a loan to companies from workers and retirees. If companies are given a pass on funding their pension plans today, and later can't make the payments, it is the workers who will pay the price. If the plan goes into bankruptcy and is taken over by the Pension Benefit Guaranty Corporation (PBGC), the pensions paid out by the PBGC are subject to the agency's benefit limits, and some workers might not receive their full pensions.. 
 
We can't let this happen. Take action now.
 
Tell the House Committee on Ways and Means that if companies receive pension plan funding relief, the following minimum protections should be included:
  • More relief should go to companies that have done the "right thing" by keeping their pension plans going than to those companies that have frozen their plans. 
  • There should be strict limits on executive pay and executive pensions that are paid out during the period of funding relief.  If companies can't afford to put money into the employees' pension plan, they shouldn't be allowed to line their executives' pockets.
  • The bill should put an end to "Q-SERPS," a practice that allows executives to pay themselves special benefits through a manipulation of workers' pension funds.
  • Companies should be barred from making lump-sum severance payments out of pension plans - unless the plan is well-funded or the payments have been negotiated as part of a collective bargaining agreement.

 

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