Bush Attacks Worker Pension and Health Benefits at DOE
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"It’s up to us to say enough is enough by electing candidates in November who are willing to say ‘no’ to further cuts in benefits.”
–John J. Flynn, BAC President |
There was a time, not too long ago, when elected leaders in the U.S. worried about the wellbeing of their citizens, and the federal government’s benefit programs set the standard for industry. But that’s not the case anymore. Since his first day in office, President Bush has pushed for changes in the country’s retirement and health care systems that benefit business at the expense of workers and their families.
Most BAC members are covered by a traditional pension called a “defined benefit” plan. This type of plan provides an individual with a guaranteed level of retirement income when they retire, and often even after the member dies, the plan will continue to provide benefits for his or her widow and dependent children.
The other type of pension is a “defined contribution” plan, such as a 401(k) plan. This type of plan is set up as a separate account for the individual. Payments at retirement are determined by how much the individual and/or their employer contributed and how well these funds were invested. Unlike a traditional plan, the money in this type of account can run out. Remember when Enron employees saw their retirement savings shrink overnight?
BAC has taken the position that “defined contribution” plans – 401(k) plans and annuities – should supplement a member’s retirement income. They should not be the only source. |
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The latest assault on workers’ retirement security occurred on April 27th when the Department of Energy (DOE) announced it would no longer reimburse contractors for traditional (or “defined benefit”) pension and health benefits offered to their new employees. Instead, DOE’s plan would encourage contractors to switch to less secure 401(k) or other “defined contribution” retirement plans, and would limit reimbursement for health benefits.
DOE’s action is just another in an appalling series of steps taken by the Bush Administration to undermine the retirement security of American working families.
First, there was the attempt to privatize Social Security, which failed once the public understood how much they would lose and business would gain. Next, was the attack on funding for government sponsored health care programs for the elderly and poor such as Medicare. Along the way, the Administration has blocked efforts to implement meaningful pension and health care reform legislation, and has done nothing as companies like United Airlines have wiped out their employees’ pensions.
“Across the country, citizens are calling for health care reform and secure pension options, yet the Administration is refusing to listen,” says BAC President John J. Flynn. “If voters allow the Administration to continue to chip away at their benefits, one day we’ll all be without them. It’s up to us to say enough is enough by electing candidates in November who are willing to say ‘no’ to further cuts in benefits.”
Editor’s Note: As of this writing, a House Appropriations panel has temporarily blocked the DOE from implementing the new policy.
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