Pension Action E-Newsletter

PRC Web Site Profiles Pension Activists
Since its inception, the Pension Rights Center has helped activists fight for pension justice. Through their persistence and creative strategies, activists have made a difference for thousands of people. We have posted profiles of some of these activists, including Frank Bryant, C. William Jones, and Janice Winston in the Activist Profiles section of our web site. We’ll keep you updated as we add more profiles.

Wall Street Wants Your Pension Fund
According to a recent Washington Post article, some financial services firms are trying to  convince regulators and lawmakers to allow them to buy out the pension obligations of employers who no longer want to maintain their frozen pension plans. This idea concerns retiree and employee groups. In a press release, Jim Norby, president of the National Retiree Legislative Network, says, “It is not in the interest of retirees to have their pension trust funds taken over by financial companies whose main motivation would be corporate profits and not the welfare of retirees.”

UPS Reaches Agreement with Union to Withdraw from Central States Pension Fund
In a move that will affect more than 43,000 United Parcel Service workers, UPS has reached a tentative agreement with the International Brotherhood of Teamsters to withdraw from the Central States Pension Fund. If ratified by the union membership, the five-year agreement would allow UPS to move the workers to a pension plan that it will manage jointly with the Teamsters. Teamsters for a Democratic Union (TDU) opposes the withdrawal. Although past benefit cuts would be restored for certain long-service UPS employees, benefits earned in the future would be much smaller than what participants would receive under the Central States Pension Fund. Make UPS Deliver has posted an online summary of how UPS employees and retirees will be affected by the change.

GM and Chrysler Approve Tentative Contracts with the United Auto Workers Union
General Motors and Chrysler have agreed to new contracts with the United Auto Workers Union (UAW). Provisions of the two agreements include closing the traditional defined benefit pension plan to new hires, and the creation of a union-run Voluntary Employee Benefits Association that will administer health-care benefits for retirees. GM’s 73,000 UAW members have agreed to the new contract while Chrysler’s 45,000 UAW members will conclude voting this weekend. Next, the union will enter into negotiations with Ford Motor Company for a new contract for its 58,000 active workers. Read details on the new GM and Chrysler contracts for UAW members.

Web Site Explains What You Can Do if Your Pension Plan Ends
The Pension Benefit Guaranty Corporation (PBGC) has written a fact sheet to help people whose companies have ended their pension plans. This helpful guide details some of what pension plan participants can expect when their company decides to terminate their plan. The PBGC is the federal agency that insures most traditional private pensions by assuming responsibility for paying out benefits to retirees when a company does not have enough money to pay its pension obligations. The fact sheet, What To Do if Your Pension Plan Ends, can be found on www.pbgc.gov.

Articles of Interest
These and other recent articles can be found in the Pensions in the News and PRC in the News sections of our web site.