Congress has recently reached a deal that would create an unprecedented nationwide reduction of pension benefits for some current retirees. The deal was tied to a 1.1 trillion dollar spending bill designed forestall a government shutdown.
The change will not have any affect on UMMHC pensions.
SHARE leadership is taking note, however, because the retirees who will be affected have already been pledged--and begun receiving--a certain level of pension income. Thus far, all pensions have been guaranteed under the law (except in certain kinds of employer bankruptcies).
The Washington Post explains: "The deal reached would apply to multi-employer pensions, where a group of businesses in the same industry join forces with unions to provide pension coverage for employees." Nearly 1.5 million retirees could see their regular pension payments reduced by up to 30%. The Huffington Post reports that "talks between Rep. John Kline, R-Min., and George Miller, D-Calif., were designed to preserve benefits of current and future retirees at lower levels than currently exist, but higher than they would be if their pension funds ran out of money."
The Defined Benefit Pension at UMMHC is provided to all SHARE members once they have reached the three-year vesting mark, and will be unaffected by this legislation. UMMHC's Pension program is secure, well-funded, and continues to be protected by law. Still, SHARE will be attentive to these kinds of legal precedents, as we have worked hard to develop and negotiate a sustainable pension system in our own workplace, one that ensures reliable retirement income.