SEIU is partnering with organizations across the country to find solutions that will deliver retirement security to more people, not force them into poverty. The economic crisis and the elimination of pension funds in the private sector threaten to send millions of retirees into poverty, a problem that would only be exacerbated by a proposed plan in Congress to gut Medicare.

California

In California, SEIU members are working to make sure that pension reform slams the door on abuses that hurt all Californians, such as spiking and double-dipping, while ensuring that our pension funds remain sustainable, safe and secure for generations to come. SEIU members have testified at hearings of the Joint Legislative Conference Committee on Pension Reform that is considering Governor Brown's proposals. At the same time, SEIU is focusing attention on the looming retirement crisis that affects all of us: the aging of tens of millions of baby-boomers with no pension except Social Security, and no savings except perhaps an inadequate 401(k). SEIU has endorsed SB 1234, a bill sponsored by Senators Kevin De Leon and Darrell Steinberg to create a retirement plan with guaranteed benefits for private sector workers who have no access to a retirement plan at work.

Florida

In March, a Florida judge ruled that contribution increases for public employees were a breach of contract with the 560,000 members of the Florida Retirement System. The judge ruled that the pension changes were "an unconstitutional impairment of plaintiff's contract with the State of Florida, an unconstitutional taking of private property without full compensation, and an abridgement of the rights of public employees to collectively bargain over conditions of employment."

Illinois

In late April 2012, Governor Quinn released a proposal to reduce retirement benefits for current employees (hired before Jan. 1, 2011) in the state's three largest pension plans (TRS, SERS, and SURS). The Governor wants to raise the retirement age to 67, reduce the annual cost-of-living increase, and require public employees to contribute an additional 3% toward their pensions.

The coalition of public sector unions (We Are One Illinois) has made the case that Quinn's proposed changes put the entire burden of paying down the state's unfunded liability onto public employees who have made their required contributions every year while the state has often failed to do so.

We Are One Illinois is advocating that retirement reforms must be constitutional and must be negotiated with all stakeholders at the table.

Kansas

In early May, the state Senate approved a bill that would create a cash balance retirement plan for new workers. The Senate defeated a bill (supported by the house and Gov. Brownback) that would have moved all new public workers (including teachers) into a 401(k)-type retirement plan. House and Senate negotiators are now working on a final version of the legislation.

Louisiana

Gov. Bobby Jindal and the Republican-led house and Senate have proposed various benefit cuts and increased contributions to several of the state's pension plans. They have also proposed moving all new employees to a low-benefit cash balance plan. Bills based on the Governor's proposals were watered down in the Senate and are now being considered by the House. Public employees are actively opposing the measures, pointing out that the new plan would impoverish retired workers and that public workers affected by the proposed changes do not receive Social Security.

Michigan

The state Senate is considering legislation that would increase employee pension contributions and retiree health care costs. Public employees have pointed out that benefits passed last fall for legislators would give them a richer retiree health care plan than public school employees will receive under the new legislation.

New Hampshire

The state legislature is currently negotiating over proposed changes for the state retirement system. The House passed a bill which would move all new hires into a 401(k)-type defined contribution plan. However, the state Senate declined to pass such a bill, opting for legislation which would create a study commission to evaluate such a DC plan for new hires. The actuarial report on the House's proposal concluded that such a move would immediately increase the retirement system's unfunded liability by $1.2 billion. The actuaries further reported that the DC bill would cost cities, towns, and school districts $222 million dollars over the next two years.

SEIU L. 1984 leaders are working closely with the New Hampshire Retirement Security Coalition. They advocate that the DC proposal be studied further and that all stakeholders should be brought to the table to make a sustainable plan for the future of the NHRS.

New York

In March, the legislature (working with Gov. Cuomo) passed a pension bill that will increase employee contributions and decrease benefits for new employees. Unions and allies successfully fought the worst of the proposals, including a 401(k) plan (instead of a pension) for public employees.

Ohio

The state Senate is considering legislation that would lead to significant changes in five state retirement plans. The proposals--which call for longer working years and increased employee contributions or both--are currently being studied by an independent commission that has not yet released its findings. House leaders have said they will wait to move legislation until the study is complete.

Oregon

In January, SEIU members took part in a legislative hearing highlighting the collapse of secure retirements in the private sector. Doug Hall, Director of the Economic Analysis and Research Network, testified about a report his group did about the economic insecurity of many retired Oregonians. Former Wall Street Journal reporter Ellen Schultz testified about the information contained in her book Retirement Heist, which examines the ways in which corporations have destroyed their workers' pension plans and greatly expanded executive pension packages. AARP member Daniel Rodriguez and SEIU Homecare worker Kit Good also testified.

As a part of an effort to raise the profile of retirement security issues, SEIU also demonstrated across the state on March 15th, the day at which the top 1% of all income earners stop paying their Social Security taxes.

Rhode Island

In late 2011, Rhode Island created a hybrid plan (with some elements of a defined benefit plan and some elements of a defined contribution plan) for most current workers, increased the normal retirement age, and froze COLAs. Public employees will file a lawsuit once the law takes effect July 1st arguing that the changes to accrued benefits violate state law.

Wisconsin

The campaign to recall Gov. Scott Walker is underway in Wisconsin. Among other things, many voters are concerned about Walker's agenda for the Wisconsin Retirement System, one of the best run and most responsibly funded public pension plans in the country. Despite the strong track record of the WRS, Walker and his legislative allies inserted a provision into last year's budget bill which created a study commission to explore a defined contribution plan for public workers. SEIU is working with other public sector unions to hold information sessions throughout the state highlighting issues related to the Wisconsin Retirement System and the important role it has in the state.

← Back to the Retirement Security homepage