Retired or planning on retiring? Best get ready to forget one more element of the so-called American dream. The recent Continuing Resolution omnibus bill signed into law by Congress and our chief executive has amended the Employee Retirement Income Security Act to allow trustees of multi-employer pensions to drastically cut benefit amounts to both current and future retires. That’s right, if the funded percentage (which appears on your plan’s annual funding notice) falls below a certain number, you may lose as much as 50 to 70 percent of your annual benefit amount. The law leaves the door open for similar cuts to single employer pensions as well.
Many corporations have already turned their defined benefit pensions into 401(k) plans over the past 20 or so years with buyouts for pennies on the dollar post bankruptcy. Now the next domino is ready to fall. As for you public employees, don’t gloat, you’re next.
Ironically, within the omnibus bill, our lawmakers have also altered the Dodd-Frank restrictions on the big banks — the same guys who put our retirements in danger in the first place. Didn’t we bail those guys out? If this makes you mad, and it should, maybe it’s time to get involved. Contact your legislators and organize.
Mike Johnson
Washougal
