Rallying for retiree security are, from left, Ray Scherer, who works at Etched Metals in Ohio; Mike Miller, a financial officer for USW Local Union 1-243 in Ohio; Ben Trusnik, recording secretary for Local 1-243; Joe Pickering, past president of Local 1-243, and Mark Minor, president of Local 1-243.
Standing out among the bald pates and grey hairs crowding into a Congressional hearing room Thursday morning with “Protect our Pensions” stickers will be 26-year-old Ben Trusnik.
The son, grandson and great-grandson of labor union members, Ben will travel to Washington, D.C., from his home in Bedford, Ohio, to speak for the men and women he works with at Etched Metals Co. He will join other union activists in speaking for workers who are afraid that after laboring 40 or 50 years, they won’t be able to retire because the multiemployer pension plan they depended on is nearly insolvent.
He’ll be there for the guy who retired from Etched Metals a little over two years ago whose wife has been ill for a long time. When visiting his former co-workers at the plant, this guy talks about the bills piling up from medical treatments, doctors and medications. Insurance doesn’t cover it all. “He is pretty worried,” Trusnik says, about losing his pension and with it, the ability to pay.
Actuaries project that 130 multiemployer pensions, that is plans in which several companies participate, will run out of money over the next 20 years. Even though that number is less than 10 percent of all multiemployer pension plans, their impending insolvency threatens the entire multiemployer pension warranty program of the Pension Benefit Guaranty Corporation (PBGC).
The PBGC is the program created by Congress in 1974 to step in when pension plans fail. Using payments from pension plans, the PBGC provides benefits to about 1.5 million people in failed multiemployer and single-employer plans. The payments pensions make to the PBGC are essentially insurance premiums. The PBGC does not receive tax dollars.
The PBGC anticipates that its multiemployer program will go bust by 2025, but that could occur sooner if several of the larger threatened multiemployer plans fail quickly. Implosion of the PBGC multiemployer guaranty program would have devastating consequences for everyone who currently receives benefits from it and for everyone whose multiemployer pension is weak. The 130 vulnerable multiemployer plans cover 1.3 million people.
The PBGC does not pay full pensions to retirees, but something is better than zip, especially because pensions are deferred compensation. They’re earned for each hour worked. They’re not gifts like fancy engraved retirement clocks. Union workers often trade wage hikes for pension increases in contract negotiations. They sacrifice immediate gratification for the security of a good pension later. But if the PBGC’s multiemployer program fails, then the workers it covers would get virtually nothing.
When Congress created the PBGC, it made a commitment to working men and women that they would not lose their pension benefits through no fault of their own. It must stand true to that obligation now.