Dec 2009 Vol. 12 No. 12

Executive Officer's Forum

Moving forward with a plan

Bob Alvarado, Executive Officer

en Espanol >


"This is about being proactive about our pension plan, and doing the right thing now, rather than waiting."

Merry Christmas and Happy New Year to you and yours. Despite the challenges we face, I hope you can find some joy in this season as we celebrate faith and family. We know 2009 has been a difficult year for many members, and it appears that at least the early part of 2010 will continue that trend. However, there are signs of hope that the recession has at least reached its bottom, and we can begin to look for signs of recovery.

Meanwhile, there is a set of challenges that all pension plans in this country are facing, and our plan is not immune. The bad economy, and poorer than expected return on investment that occurred as a result, created some of these challenges. But we are also impacted by rules put in place by the Pension Protection Act, created by the Bush Administration, which create unreasonable and unrealistic reporting standards. We are working hard with Congress and the Obama Administration to undo the worst aspects of this legislation.

However, it appears that those changes won’t come before the end of this year, so we have to move forward with a plan, and do what we have to do to ensure that we can keep our promises to future retirees. If we have a plan that works under the current rules, we will be even better off when we get relief from this terrible legislation.

One of the impacts of the so-called Pension Protection Act is that as a result of the investment earnings over the past two years, our Plan is being labeled as in “critical” status, or as being in the "Red Zone." The result is that we are required to develop a Rehabilitation Plan, designed to ensure that the Fund will be financially secure, and that we will continue to be able to provide a secure pension to future retirees.

We will be presenting the plan in a series of meetings throughout Northern California. I encourage all members to attend one of these meetings, and you are welcome to bring your spouse as well.

This is about your retirement. I urge you to be diligent and come listen to this information. These are not regular union meetings, but sessions devoted solely to discussing the pension. We want to make it easy by inviting you to come to a meeting close to your home, even if you don’t belong to that Local. Of course, you are welcome to attend whichever one of the meetings is most convenient.

I want to stress that I believe our plan is in good shape, especially if we put more money into the pension. I do know however, that we need to act now, even as we hope that the economy will improve and that we will get legislative relief. I also want to assure current retirees that the changes we are proposing will not affect your current monthly benefit payment. Regardless of what future action we take, your monthly check will continue.

This is about being proactive, and doing the right thing now, rather than waiting. We hope for a brighter future for all of us, and we are taking steps to ensure that the future includes a financially stable pension plan.

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