On the Pension Watch

Although I don't regularly update with the news on various organizing matters, AFL/CTW issues, etc., I do watch them pretty closely. A reader recently pointed out that another area of grave concern, and possibly even greater significance than the other "labor" topics, is the area of pension reform and the end of the defined benefit retirement plan. After watching this particular news area, I have to agree: it's pretty fruitful. Just to pluck a story or two from the recent headlines:

The Anchorage Daily News is reporting on the effects of the 1983 Windfall Elimination Provision of the Social Security Act. Yeah, I know, yawn. The fact is, state employees in 16 states, including Alaska and California, could have social security benefits (earned prior to state employment) reduced by the value of their state pension. This probably seemed fair at one time (or not, it passed in the Reagan era) but as state pension reform looms, it could be disastrous (or at least difficult) for a group of workers once considered above the fray of retirement hassles....

IBM recently reported that it is ending its defined benefit retirement plan for employees, notwithstanding solid profits and a supposed commitment to its workforce. Money magazine reports this month that 16% of large employers are going to freeze their pension plans in 2006. That's 16% of the large employers who even still HAVE defined benefit pension plans....

More on this soon...