The Attack on Public Sector Pensions District 7 Conference May 2, 2010 Brooks Sunkett, Vice President CWA Public, Healthcare & Education Workers

2 “Starve the Beast!”  Ever since the election of Ronald Reagan, conservative activists, economists, pundits and politicians have pressed for more and more tax cuts.

3 Corporate Income Taxes now generate less than 10% of Federal Tax Revenues

4 Tax Cuts Have Worked Out Well for the Rich

5 After 30 years Dominated by Tax Cuts  In most states, property and sales taxes have skyrocketed placing ever greater burdens on homeowners, fueling their opposition to government programs, even those from which they benefit

6 To Get Ready for Retirement you must Save Money While You’re Working Three Ways to Save for Retirement 1.By Yourself 2.Employer Sponsored Defined Contribution 3.Employer Sponsored Defined Benefit Pension Plan

7 Protect Your Defined Benefit Plan Many legislators and anti-government activists would like to do away with our pension benefits. This would be a huge loss for workers in the public sector. Here are some of the advantages of a Defined Benefit plan to workers and to their employers:

8 What’s Wrong with a Defined Contribution Plan?  Employees bear all the risk for investment losses

9 Access to Retirement Savings Options Private Sector Public Sector Personal Savings Only40%0% Defined Contribution Plan (may have DB plan) 54%29% Defined Benefit Plan (many have DC plan too) 21%83% Source: Bureau of Labor Statistics: Private sector data 2006; Public Sector 2007

10 When Will I Get My Pension?  Generally all full-time employees participate in the plan, but part-timers may also be included, sometimes you must have a certain amount of service before you become eligible.

11 How are Defined Benefit Pensions Funded?

12 Where Does the Funding Originate? Source: National Institute on Retirement Security, February 2009

13 What Will My Pension Pay Me?  The amount of the monthly benefit is usually based on your earnings, your total service to retirement. There are three different methods

14 Where Does the Funding Originate? Source: National Institute on Retirement Security, February 2009.

15 What Can We Do? (In addition to building our bargaining power, of course) A. Know the Plan B. Monitor its Finances C. Follow Trustee Decisions

16 Unions Can and Must Fight Pension Cut Backs!  Learn the Facts  Identify Ulterior Motives  Recognize Gimmicks  Challenge Employer  Assumptions  Be Proactive  Educate, Mobilize Members  Public Message