Socialist Progressives
Related: About this forumWashington Post announces cuts to employees’ retirement benefits
X post in Labor
http://www.washingtonpost.com/business/economy/washington-post-announces-cuts-to-employees-retirement-benefits/2014/09/23/f485981a-436d-11e4-b437-1a7368204804_story.html
The newspaper said in a letter to employees that it was making the cuts in benefits with a goal of better positioning The Post for long-term success. (Win Mcnamee/Getty Images)
By Steven Mufson September 23
The Washington Post announced large cuts in retirement benefits on Tuesday, declaring that it would eliminate future retirement medical benefits and freeze defined-benefit pensions for nonunion employees.
The company also said that in negotiations that started Tuesday, it will seek to impose the same conditions on employees covered by the union one of the first indications of how The Posts new owner, Amazon.com founder Jeffrey P. Bezos, will manage relations with the staff of the news organization.
The changes will hit hardest at employees hired before 2009 who could plan on receiving pension payments based on their income and years of service. Each of those employees could see scores or hundreds of thousands of dollars less over the course of a retirement. More recent hires do not have traditional pension plans.
The Post will create a new cash balance plan to replace the pensions for nonunion employees and a separate but similar plan for those covered by the union. Those plans provide employees with a lump sum or annuity when they retire. But they do not guarantee a particular level of retirement payments, thus reducing the risk that Bezos would have to add money to the pension if financial markets plunged.
FULL story at link.
TreasonousBastard
(43,049 posts)as if Wal-Mart is taking over the world.
Amazon now owns you. Any small part of you it might not own, it will get soon enough.
KansDem
(28,498 posts)Sadly, rather than cutting costs by sharing them, some companies instead are giving up on providing pensions at all and dumping the responsibility and risk on employees, who are least prepared to handle it, said Josh Gotbaum, who stepped down last month as the director of the federal Pension Benefit Guaranty Corp.
In other words, put more $$$ into the pockets of Bezos and his fellow plutocrats.
yallerdawg
(16,104 posts)These pension plans are legal contracts. In a nation that purports to honor 'rule of law' above all else, our courts and agencies are abandoning the workers.
Many plans reduced the reliance on Social Security so as these plans are gutted, more and more fall back on the SS program as a last resort, instead of the retirement they had counted on for their working lives. Talk about rug being pulled out from under you.
Funding the corporate and public sector obligations should have always been a separate endeavor from the sustainability or status of the entity to exactly avoid the opportunity for shenanigans like this.
This keeps happening, where is the political movement to end this?
ctsnowman
(1,903 posts)rogerashton
(3,920 posts)And my boss is a "nonprofit." Well, at 72, I don't have much to lose -- my retirement fund is either enough or it is not, at this age -- but my younger co-workers are definitely getting the shaft. Oddly enough, the whistle was blown by the former dean of the Business College.