Attack on Pension Benefits, by Jim Prola
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Hi
Council 57 Retirees, My name is Jim Prola and I am the voluntary
political person for AFSCME C57 retirees. I am writing this article
because the attacks on public employees pension benefits continue
to be ruthless while lacking substance. The threat to out pensions
is very real. This summer, Keith Richman, a former Republican
from the LA area, began circulating an initiative for signatures.
This initiative would change public employee pensions from defined
benefit plans to a 401k style plan for new employees and would
exponentially increase fund/savings risk by relying on the unpredictability
of the stock market. The initiative would also raise the retirement
age to receive full benefits. By making the initiative applicable
to new employees, the initiative's goal is to undermine the current
stability of the defined benefit plan by reducing future contributions.
In turn, this would result in instability of the plan for both
active and retired members, not only toward receiving their guaranteed
retirement benefit, but to further future justifications of attacks
on the defined benefit plan. We must be prepared to fight to defend
our pensions again and to make sure that our family and friends
are properly informed. Here are some talking points against the
initiative. 1- This initiative is punitive and unfair. It arbitrarily
cuts pension benefits for all new teachers, nurses, firefighters,
police and other public employees by at least 30% and as much
as 65%. 2-Today a teacher who works 20 years and retires at age
65, with a salary of 70,000 dollars, would receive a pension of
$33,600. Under this initiative that same teacher hired after July
2009 would receive a pension of $14,000, a cut of more than 58%.
We won't be able to recruit and retain people in difficult and
important jobs when pensions are cut so severely. 3- This initiative
creates two classes of workers. Two people working side by side
in the same job will be entitled to different pensions and retiree'
health benefits. This will create morale problems and conflict
in the workplace. 4-This initiative eliminates health care benefits
for any new public employee who does not work the 5 years immediately
prior to retiring at age 65. Employees who suffer a serious illness,
accident or otherwise can't work until age 65 (55 for police and
firefighters) will be denied retiree health care. S-Taking away
health care from workers who get sick before they can retire is
just plain wrong. To cut their pensions in half in addition is
unconscionable. 6- This initiative won't make things better, it
will make things worse. Don't punish hard working teachers, nurses,
firefighters, police and other public employees. Don't support
this initiative and don't sign this petition. Our Chapter 57 retiree
executive board voted to send 500 dollars at OUI last meeting
to help fight this initiative. For those of you who have the ability
to contribute, we appreciate any additional donations and assure
you they will be put to good use. Make checks payable to AFSCME
California Issues ID#1254555, and send them to Willie Pelote,
1121 L Street, Ste. 904, Sacramento, CA 95814. In solidarity,
Jim Prola
