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2004 Convention Resolutions

Resolution No. 42

PENSIONS        

WHEREAS, Workers through their unions have negotiated pensions as part of collective bargaining; and

Pensions are a contractual obligation in which unions gave up benefits today to provide for their retirement; and

Corporations that have gone into bankruptcy due to trade or business fortunes have under-funded their pension obligation; and

Corporations whose pension funds were considered over-funded became targets for mergers or acquisition and the pension funds were raided of needed revenues; and

Pensions are a vital link to assure workers and their families that should they retire or become disabled, the pension fund obligations would help them maintain the standard of living they have achieved; and

Congress established the Pension Benefit Guarantee Corporation to pay pensions should corporate pension reserves be insufficient to meet contractual obligations; and

The PBGC currently faces a deficit of almost 90 billion dollars because of the collapse of major manufacturing; and

Corporations and unions that negotiate health care for retirees have no federal or state equivalent to the PBGC and lose all contractually mandated health coverage should a company go bankrupt; and

THEREFORE, BE IT RESOLVED, That the Pennsylvania AFL-CIO, and it’s affiliates, support legislation to raise the PBGC pension guarantee from 80% to 100% of the contractual pension.

THEREFORE, BE IT FURTHER RESOLVED, That the Pennsylvania AFL-CIO support federal legislation to assure that the PBGC has sufficient funds to meet it’s obligation.

THEREFORE, BE IT FURTHER RESOLVED, That the PBGC responsibilities for pensions be extended to assure that negotiated health care coverage be paid for by the PBGC should the employer corporation fail to meet it’s contracted obligation.

Submitted by:

                        PENNSYLVANIA AFL-CIO EXECUTIVE COUNCIL

Referred to:               Legislation Committee

Committee Action:           

          

         

    

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