Spring 2010

Pension reform is our responsibility

The notion of a pension - guaranteed security in retirement after a long career of hard work - forms one of the economic foundations of our society. A good pension is something we all want for our parents, for our children and for anyone else we care about.

Pensions are a key component of every good union contract. Union pensions are, in fact, so valuable that they inspire envy among those who don't have the benefits of a collective-bargaining agreement.

We fight hard every time we sit down at the bargaining table to maintain our pension benefits because it is the right thing to do. We never want to reach the point where strong and stable pensions become a thing of the past.

We have always dealt with employers who want to cut their costs. Unfortunately, the current problems in the nation's economy have made our task more challenging than ever.

Pensions in crisis

The collapse of the markets in 2008-2009 caused widespread hardship for American families and businesses. The trust funds that manage pension plans were similarly affected. Investment returns plummeted, leaving even the most carefully run funds in a difficult situation.

Although we are now in a period of slow economic recovery, pension funds across America took such a hit that it will take years for them to recover.

It won't be enough to ask union employers to increase their contributions to the pension trust funds. We must make fundamental changes to the laws that govern the administration of these funds.

One necessary step is to make changes to the Pension Protection Act (PPA), which was signed into law in 2006. The authors of the PPA did not foresee such a catastrophic economic event as we have experienced in recent years.

Specifically, the law needs to be amended to give the trustees of pension funds the time they need to recuperate and rebuild. These adjustments also would take some pressure off of the companies that pay into the funds, helping them remain competitive with non-union employers.

To make these necessary changes happen, we will need forceful political leadership at all levels. Legislation like the Create Jobs and Save Benefits Act in the Senate and the Preserve Benefits and Jobs Act in the House of Representatives are great efforts to solve the problem.

Please urge your representatives Congress to support these bills and to develop their own ideas to fix the system.

You'll be doing your part to help protect the pension security of millions of Americans, including your own.

Sincerely,

Brian String
President