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The Outright War against Defined Benefit (DB or traditional) Pension Plans
Do you know the real reason we are all being pushed into Defined Contribution (DC or 401Ks) plans? It is the same reason for the big push to eliminate Social Security. Social Security is a DB plan. I’m sure you have heard many reasons why you should have a 401K instead of a Pension. Did you also know that the costs and fees on 401Ks are quite high relative to DB Pensions? Well managed, Defined Benefit Pensions are very efficient and reliable (The IAM Pension is 99% funded). The costs and fees are very low and that is a very good thing…..unless you are an investment bank. For them it means limited profits. As DB Pensions are snuffed out, the money is forced into 401K plans, where the investment banks can make MUCH bigger profits.
About three weeks ago along with other Unions, I met with representatives from a large investment bank. I asked them point blank “Which is more profitable for your bank, Defined Benefit Pension accounts or 401K accounts?” Simple enough question. Out came the BIG WORDS and rambling nonsense! I heard everything under the sun except for a simple answer to my simple question. Why?
Old news is new again! Defined Benefit Pensions are the best thing for EMPLOYEES. Check out this article in Reuters. http://tinyurl.com/3wtq9ry
If you like to read and want to see the full report, go here http://tinyurl.com/3fqxode
The Middle class is suffering, paying ever INCREASING penalties because we have not been involved in politics. Our lack of participation in our government left a vacuum which was completely filled by the influence of money. You see, “the penalty for NOT participating in politics is that you end up being governed by those who are only interested in conducting public affairs for corporate advantage”. Example - GE made a net profit of $14.2Billion last year, and with the help of an army of lobbyists, paid no taxes on that $14.2Billion dollar profit! Now, it’s going to take some time to distill all of the grievances being aired by the 99% but, we WILL get to the root of the problem. A good place to start might be..….It is NOT about Democrats or Republicans.
Make no mistake. We are not starting a class war! It is only that we are no longer willing to ignore the war which has been waged against the middle class for the last 30 years!
We are the 99% and it is now time to sharpen our elbows, get involved, push back the lobbyists, and do what is best for the Middle Class AND the USA.
Fraternally,
Joseph M. Pijanowski
IAM Local 126
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