Collectively Bargained Pension Systems Are Fueling the Nation’s Economic Recovery

http://laborradio.org/2014/12/win-union-economy-desk-collectively-bargained-pension-systems-are-fueling-the-nations-economic-recovery/


Audio: https://soundcloud.com/laborradio/win-union-economy-desk-collectively-bargained-pension-systems-are-fueling-the-nations-economic-recovery

By JoAnne Pow!ers

With the Workers Independent News Union Economy Desk, I’m JoAnne Pow!ers.

Fresh off a Circuit Court victory preserving pension benefits for more than half-a-million public workers in the State of Illinois, Illinois Federation of Teachers president Dan Montgomery tells WIN that collectively-bargained pensions are helping to fuel the nation’s economic recovery:

“The teachers’ pension system in Illinois alone pumps three billion dollars into the Illinois economy. That’s huge. The lifeblood of Illinois’ economic health. The more that we build smart ways to provide for people’s old age in the present, to provide for the future, the more that we’re building a stronger economy that’s not going to have to make those payments years out. The tough part is you gotta plan head, and governments don’t like to plan ahead often.”

State pension systems could serve as a model to improve the lives of all workers. Montgomery says the country’s 25 year experiment with defined-contribution systems such as 401Ks has been such a failure that sixteen states are now considering legislation to allow the general public to participate in defined-benefit state pension systems:

“I think that’s a great idea, because we need to expand the discussion beyond even just the labor movement. What are more creative ways that we can ensure that people are going to have access, and some sort of pension system and annuity in retirement, and not just people that are working in public service or in unionized environments? It’s good public policy to find ways to get more people into defined benefit systems.”

FULL story at link.