© 2024 Pension Rights Center. This work is licensed under a Creative Commons Attribution-Non Commercial 2.5 Generic License.
By David Brandolph
American workers are increasingly demanding that their employers restore their traditional defined benefit pension plan, making the issue a principal ask in collective bargaining.
The latest example of how highly workers value pensions was the overwhelming (64%) rejection by members of the International Association of Machinists and Aerospace Workers (IAM) in Seattle, WA, of a tentative agreement with Boeing.
In turning down an agreement that included increased wages and increased employer contributions to their 401(k), the Washington Post reported that “[while] some workers said they were voting to reject the deal because the wage gains fell short, many were also hoping for the restoration of a pension program.”
“The fact that IAM members are continuing to demand a defined benefit plan shows that they recognize the inherent inadequacies of 401(k) plans in providing retirement income security. Pension plans provide reliable guaranteed lifetime benefits, while 401(k)s put all the risks and responsibilities on to individuals. So it makes sense that they’re advocating for a better and more secure benefit,” said Pension Rights Center Executive Director Karen Friedman.
Having a secure retirement is part of the American dream and now unions are leading the way in igniting a debate on this issue. “Fighting for defined benefit plans is not just important in collective bargaining; it represents a paramount goal for our nation overall. A secure, adequate lifetime retirement income needs needs to be a priority for policy makers” Friedman added.
