Keeping Our Guard Up

Keeping Our Guard Up 

While I believe that the stock market should not be the measure of how well we are doing in America, retirees who receive a pension should be concerned on the recent drop in the stock market. Downward movement in the market impacts the stability of the company pension fund and may require additional contributions to the fund which in turn impacts the financial stability of the company. The increase in the unfunded liability of pension funds in both private and public sectors is becoming an issue and one we should pay attention to.

On top of all the other issues, we need to pay attention to the fact that more and more states are claiming a hardship in their ability to maintain stability in their state-run pension funds. If the states ever begin to get relief from their obligation to properly maintain their pension funds, you can be sure that the private-sector employers will soon begin lobbying for relief from their pension obligations as well.

We need to make sure people understand that pensions are the workers way of saving for retirement. We have negotiated with employers that a piece of our wages is taken at a later time, when we retire, instead of being given to us now. This was a benefit to the employer who receives tax advantages by putting the money into a pension fund and to us by receiving a portion of our pay later in life. It is not simply their money they provide for a benefit, it is ours.

To all in the family of SOAR, I hope you enjoy a safe and happy holiday season and get ready of what may be a very active year for SOAR.

Bill Pienta, SOAR President