Transcript The Attack on Public Sector Pensions District 7 Conference May 2, 2010 Brooks Sunkett, Vice President CWA Public, Healthcare & Education Workers.

The Attack on
Public Sector Pensions
District 7 Conference
May 2, 2010
Brooks Sunkett, Vice President
CWA Public, Healthcare & Education Workers
“Starve the Beast!”
 Ever since the election of
Ronald Reagan,
conservative activists,
economists, pundits and
politicians have pressed
for more and more tax
cuts.
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Corporate Income Taxes now generate less than
10% of Federal Tax Revenues
Income Taxes as a Percent of Federal Receipts
60%
50%
40%
30%
20%
10%
Individual
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0%
Corporate
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Tax Cuts Have Worked Out Well for the Rich
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After 30 years Dominated by Tax Cuts
 In most states, property
and sales taxes have
skyrocketed placing ever
greater burdens on
homeowners, fueling their
opposition to government
programs, even those from
which they benefit
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To Get Ready for Retirement you must Save Money While
You’re Working
Three Ways to Save for Retirement
1. By Yourself
2. Employer Sponsored
Defined Contribution
3. Employer Sponsored
Defined Benefit Pension
Plan
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Protect Your Defined Benefit Plan
Many legislators and anti-government activists would like to do away with
our pension benefits. This would be a huge loss for workers in the public
sector.
Here are some of the advantages of a Defined Benefit plan to workers
and to their employers:
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What’s Wrong with a Defined
Contribution Plan?
 Employees bear all the risk for investment losses
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Access to Retirement Savings Options
Private
Sector
40%
Public
Sector
0%
Defined Contribution
Plan (may have DB plan)
54%
29%
Defined Benefit Plan
(many have DC plan too)
21%
83%
Personal Savings Only
Source: Bureau of Labor Statistics: Private sector data 2006; Public Sector 2007
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When Will I Get My Pension?
 Generally all full-time
employees participate in
the plan, but part-timers
may also be included,
sometimes you must have
a certain amount of
service before you become
eligible.
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How are Defined Benefit
Pensions Funded?
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Where Does the Funding Originate?
Source: National Institute on Retirement Security, February 2009
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What Will My Pension Pay Me?
 The amount of the
monthly benefit is
usually based on your
earnings, your total
service to retirement.
There are three
different methods
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Where Does the Funding Originate?
Cost to Provide a Benefit of $2,200/mo,
Starting at Age 62
$600,000
DC Plan
$500,000
$400,000
DB Plan
$300,000
$ 549,903
$200,000
$ 354,962
$100,000
$0
Source: National Institute on Retirement Security, February 2009.
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What Can We Do?
(In addition to building our bargaining power, of course)
A. Know the Plan
B. Monitor its Finances
C. Follow Trustee Decisions
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Unions Can and Must Fight
Pension Cut Backs!
Learn the Facts
Identify Ulterior Motives
Recognize Gimmicks
Challenge Employer
Assumptions
Be Proactive
Educate, Mobilize
Members
 Public Message
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