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CWA Scores Republican Attempt to Weaken Retirement Security for California Public Workers
Washington, D.C. -- The Communications Workers of America called on California lawmakers to reject a proposal that would put the retirement security of California public workers at risk and that was clearly an attempt to curtail the ability of shareholders to use pension assets to make their voices heard in corporate board rooms.
CWA leaders strongly criticized the plan by California Gov. Arnold Schwarzenegger (R) that would scrap the traditional defined benefit pension plan for new state employees and substitute a 401 (k) style defined contribution plan administered by private investment companies instead of the state.
Workers need pensions and retirement income that are guaranteed, and not dependent on the uncertainty of Wall Street investments, CWA's 19-member executive board said in a statement.
Forcing new employees into the defined contribution plans could cost the state economy as much as $18 billion in investments now made by the state employee fund, analysts have said, noting that the plan will not help California balance its budget. Administrative costs for these plans also are higher, putting additional costs on workers and retirees, the CWA board pointed out.
"This ploy by the governor is a thinly disguised attack on working people and the ability of workers' pension funds to support good governance. The California Public Employee Retirement System – CalPERS – and the California teachers fund – CalSTRS -- consistently have supported good and effective corporate governance. Switching to a private system is a first step to dilute the ability of citizens to make certain that their voices are heard by corporate America," the CWA board said.
The CWA Executive Board called on the AFL-CIO and affiliates to inform all progressive organizations about this attack, and the Bush administration's assault on the integrity of the Social Security system, and to fight to safeguard both programs as the foundation of retirement security for millions of Americans and their families.
CWA leaders strongly criticized the plan by California Gov. Arnold Schwarzenegger (R) that would scrap the traditional defined benefit pension plan for new state employees and substitute a 401 (k) style defined contribution plan administered by private investment companies instead of the state.
Workers need pensions and retirement income that are guaranteed, and not dependent on the uncertainty of Wall Street investments, CWA's 19-member executive board said in a statement.
Forcing new employees into the defined contribution plans could cost the state economy as much as $18 billion in investments now made by the state employee fund, analysts have said, noting that the plan will not help California balance its budget. Administrative costs for these plans also are higher, putting additional costs on workers and retirees, the CWA board pointed out.
"This ploy by the governor is a thinly disguised attack on working people and the ability of workers' pension funds to support good governance. The California Public Employee Retirement System – CalPERS – and the California teachers fund – CalSTRS -- consistently have supported good and effective corporate governance. Switching to a private system is a first step to dilute the ability of citizens to make certain that their voices are heard by corporate America," the CWA board said.
The CWA Executive Board called on the AFL-CIO and affiliates to inform all progressive organizations about this attack, and the Bush administration's assault on the integrity of the Social Security system, and to fight to safeguard both programs as the foundation of retirement security for millions of Americans and their families.