Jan 2010 Vol. 13 No. 1

Executive Officer's Forum

Facing our challenges in 2010

Bob Alvarado, Executive Officer

en Espanol >


"I urge those of you who will be affected to be part of this decision. Attend one of the remaining pension area meetings, and listen to all the information.."

As we look forward to a new year, what we’re facing is driven by the state of the economy. Certainly, 2009 was a horrible year, and all the predictions I’ve seen suggest the economy will continue to be slow in the first half of this year.

After that, we may begin to see a light at the end of the tunnel, and return to growth. The federal stimulus money will continue to flow, and we will see more work. We are looking closely at energy and institutional projects—schools and hospitals, for example—that may ramp up in 2010.

But we can’t wait to deal with the impact of the economic meltdown on our investments, especially in the Pension Fund. The stock market and real estate took a big hit, and our Fund is no exception. That reality, combined with pension rules adopted during the Bush Administration, has forced us to make some hard choices about the future of our pension benefits.

None of the changes under consideration will affect those of you who are already retired and collecting a pension. For those who are still working and planning to collect a pension, the decisions we make over the next couple of months will have a real impact.

Following the last set of changes to our pension plan in 2006, I explained that the Pension Protection Act of 2006, which altered the way pension plans’ financial status is measured by the government, forced our Plan to increase contributions and reduce benefit accruals. The 2006 Act did not consider once-in-a-lifetime investment events, and therefore, the measurement tools adopted in 2006 provided no cushion for the economic meltdown of 2008–09.

We have been working hard to get those rules revised while assuring that pension plans remain capable of paying promised benefits. However, despite pledges that a bipartisan pension reform bill would be passed by last fall, no such bill has yet been considered.

We will continue to lobby for the passage of pension reform legislation (currently known as the Pomeroy Bill), but we still have to move forward with a plan that ensures we’ll be able to provide a dignified pension to everyone who has worked so hard to earn one.

LEARN MORE, ATTEND A MEETING

I urge those of you who will be affected to be part of this decision. The first step is to attend one of the remaining pension area meetings, and listen to all the information we have about the status of the fund, and the how the changes could affect future retirees.

The Bargaining Parties have proposed a plan that will let us improve and protect our hard-won benefits. I am committed to membership involvement, so we will put this to a vote during the latter half of February. I am convinced it will be better for us to implement a plan of our design rather than to accept a government option, but you need to make an informed decision for yourself.

Attend one of the upcoming meetings, listen carefully and ask questions. Read this paper, and watch your mail for an information packet and a ballot from the union. This is our decision to make, and the choices aren’t easy. But just like we do on the job, we’ll come together, face the challenges and get the job done.

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