Stories about the compromising of the pension funds of hard working Americans are quite prevalent these days, and actions against law makers who allow it to occur should be a high priority. The pension plan I am in was essentially forced upon me and I demand that the pension plan managers are honest stewards of the money deducted from my paycheck.
Read the letter to the editor of the New Haven Register written by Gerald Lewis where Lewis details the cutting of up to 50% on the monthly pension payments for fixed income retirees who can ill-afford such a precipitous drop in their monthly income!
Congress has passed a trillion-dollar omnibus spending bill that includes giving trustees of multi-employer pension plans the ability to cut pensions(Congress should NOT have this power to legally take money from workers who have faithfully had contributions from their paychecks deposited into pension plan accounts for decades!!) earned by 1.5 million workers and retirees. Many pensions will be cut by up to 50 percent to retirees who are in no position to make up for the monthly shortfalls they will be sorely missing in order to be financial secure.
On behalf of the workers and retirees who read your newspaper, I feel you should publish an editorial telling members of Congress they should hold hearings early in the new Congress to explore better solutions other than cutting pension benefits(any pensioner would certainly support this!).
Reportedly, Congress acted out of concern about the $42.4 billion that the PBGC says it is short for needed payouts if at-risk multi-employer pension plans failed. Does this remedy open the door for the PBGC and single-employer pension plan sponsors to seek the same relief?
Congress did not stipulate that this change applied to multi-employer plans only. It enacted the law in a way that it changed ERISA to permit the change to some underfunded multi-employer plans but did not add the word “only.” Therefore, Congress did not preclude underfunded single-employer plans from being de-risked by allowing plan sponsors to cut retiree pension benefits in the future! Tell Congress it needs to amend the provision to protect single-employer pension plan retirees.