Teamsters Sign Letter to Obama Seeking Pension Relief

Labor Unions, Various Groups Reach Out to President for Relief on Multi-Employer Pension Funds

The President
The White House
Washington, DC 20500

Dear Mr. President:

On behalf of plan sponsors that provide retirement benefits to millions of workers, the undersigned organizations seek your support in enacting legislation as soon as possible to provide much needed relief for both single employer and multiemployer pension funds. Without funding relief, many jobs will be lost and the economic recovery will be significantly slowed.

Providing defined benefit funding relief is directly related to improving the economy and employment. Unexpectedly large funding requirements will continue to require many employers to lay off workers, close plants, and postpone investments in order to fund their pension plans, which are long-term obligations. Several independent reports and studies have highlighted the direct linkbetween unexpected funding obligations and the negative impact on employment.

Even with the relief provided by Worker, Retiree, and Employer Recovery Act of 2008 and the Treasury Department, minimum contributions requirements for 2010 and 2011 will still far exceed the minimum contribution requirements for 2008; in addition, many companies are not eligible for the relief and thus face daunting contribution obligations for 2009. To meet these shortterm obligations, many employers will be forced to divert cash needed for current job retention and creation and investment in their organizations to their pension plans to fund long-term obligations.

Some have argued that plan sponsors can simply borrow the money to pay greatly increased pension plan contributions. However, access to credit remains limited. When the Association for Financial Professionals asked about actions taken since the start of the credit crisis, 73 percent reported freezing or reducing hiring, 65 percent reduced capital spending and 61 percent considered staff reductions and/or layoffs. Such actions will accelerate if
plan sponsors are required to put much larger contributions into their pension plans.

Thank you in advance for your support of this important effort. We look forward to working with you and Congress to advance legislation that will promote our nation’s economic recovery and reinvestment, while securing sound long-term pension plan funding.

Sincerely,

Aerospace Industries Association

Agricultural Retailers Association

Alliance for Children and Families

American Benefits Council

American Federation of Musicians of the U.S. and Canada

American Forest & Paper Association

American Hospital Association

American Institute of Certified Public Accountants

American Public Power Association

American Society of Association Executives (ASAE)

American Trucking Association

ASPPA College of Pension Actuaries

Association for Financial Professionals (AFP)

Bakery, Confectionery, Tobacco Workers and Grain Millers International Union

Bituminous Coal Operators’ Association, Inc.

Builders Exchange of Rochester

Business Roundtable

Committee on Investment of Employee Benefit Assets (CIEBA)

Construction Employers ‘Association of California (CEA)

Construction Employers Association of Central New York, Inc.

Construction Employers Labor Relations Association of New York State, Inc. (CELRA)

Construction Industry Association of Rochester (CIAR)

Construction Industry Employers Association

Direct Marketing Association

Eastern Contractors Association, Inc.

Edison Electric Institute

Engineering & Utility Contractors Association

Financial Executives International’s Committee on Benefits Finance

Financial Services Roundtable

Food Marketing Institute

Girl Scouts of the USA

Great Lakes Fabricators & Erectors Association

HR Policy Association

Indiana Manufacturers Association

International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, AFL-CIO

International Brotherhood of Teamsters

International Council of Employers of Bricklayers and Allied Craftworkers

International Union of Bricklayers and Allied Craftworkers

Ironworkers Management Progressive Action Committee Trust

Jewish Federations of North America

Johns Hopkins Institutions

Mechanical Contractors Association of America (MCAA)

National Association of Manufacturers

National Association of Waterfront Employers

National Association of Wholesaler-Distributors

National Coordinating Committee for Multiemployer Plans

National Council of Chain Restaurants

National Council of Farmer Cooperatives

National Education Association

National Electrical Contractors Association

National Federation of Independent Business

National Federation of Nurses

National Mining Association

National Retail Federation

National Rural Electric Cooperative Association

New York State Nurses Association

Newspaper Association of America

Ohio Chamber of Commerce

Printing Industries of America

Sheet Metal and Air Conditioning Contractors’ National Association

Society for Human Resource Management

SMACNA Rochester

The Associated General Contractors of America

The Association of Union Constructors (TAUC)

The Broadway League

The Business Council of New York State

The ERISA Industry Committee

The International Union of Operating Engineers

The International Union of Painters and Allied Trades

The Sheet Metal Workers’ International Association

The Truck Renting and Leasing Association

United Neighborhood Centers of America

U.S. Chamber of Commerce

United Union of Roofers, Waterproofers and Allied Workers


Cc: The Members of the United States Congress

Download PDF

LATEST NEWS »