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Pension Reform and the Fight over Defined-Benefit Pension Plans
There are a number of efforts at the federal level to finance the PBGC in order to protect private defined-benefit pension plans. A number of older industrial companies, such as Bethlehem Steel, have now been joined by United Airlines, Delta and Northwest in trying to shift their pension liabilities to the PBGC. Furthermore, a number of private companies are dropping their defined-benefit pension plans. This has provided an opportunity for those who seek to destroy teacher and state employee retirement plans.
At the state level, there are growing efforts to convert existing defined-benefit teacher and state and local government employee retirement plans to defined-contribution 401(k)-type plans for all active employees. Efforts to convert the California system to a defined-contribution plan were thwarted by the AFT and other unions working together. Unfortunately, a similar effort in Alaska was successful. Threats are growing throughout the nation to move against these retirement plans. For example, a new attack is expected in California. It is vital that you stay in touch with your AFT state federation to find out how you can help thwart this right-wing drive. Although current retirees are usually exempted from such a change, this move for new hires will ultimately affect the benefits of current retirees by reducing the flow of contributions, which provide funds for defined-benefit plans� investments and benefits.
The AFT is working in coalition with both the teacher and state retirement plans and other unions to protect this vital source of retirement security.
Guide to the New Medicare Prescription Drug Coverage: http://www.aarp.org/health/medicare/drug_coverage/guide_to_the_new_medicare_prescription_drug_covera.html/
Medicare Rx Coverage Guide
Medicare will soon offer insurance plans to help people pay for their prescription drugs. The new program, known as Medicare Part D, will begin on Jan. 1, 2006. If you are on Medicare, you can get this drug coverage.