Integrity Matters
January 25, 2006
Pension cuts show a lack of loyalty
Question: (E-225)
Dear Jim:
American corporations are dissolving pensions. Front-line
employees commit careers to organizations only to see
their loyalty and integrity kicked to the curb. Can this
be stopped?
Response:
When retirement payments are dissolved with accounting
trickery and irresponsible behavior, and the government
does not step in, free enterprise is at risk. Executives
hire employees to produce and provide quality products
and services. Employees deserve fair wages and adequate
retirement benefits. Responsible organizations are good
stewards of retirement accounts, enabling structured
savings to become well-earned individual safety nets.
Unfortunately, too many organizations have reneged on
pension payouts.
More are threatening to dissolve these accounts, risking
the health and security of vulnerable employees and destroying
trust and optimism.
These dishonest stewards of promised dollars appear
to be powerful capitalist "renegades" who know
the loopholes and have abandoned legitimate obligations
to their employees, current and past. This is wrong and
they know it. They are ignoring the social contract between
labor and management.
Last month, according to The Associated Press, President
Bush called on American businesses to live up to their
pension promises, saying too many companies are not putting
away enough money to protect the retirement benefits
of their workers. Bush said federal rules governing pensions
are confusing and misleading and allow companies to technically
play by the rules without funding the promises they make.
In the end, taxpayers wind up footing the bill because
of federal pension insurance.
Corporate leaders are being allowed, by law, to sidestep
responsibilities.
In addition to rising pension insurance costs, trust
in the business leadership sinks, even lower. Who is
eager to work hard without proper respect for leaders?
No one!
One thing that can be done to help restore pensions and
trust in the free enterprise system is electing officials
who are willing to protect the vulnerable. Because the
pensions of those we elect to Congress are secure, isn't
it reasonable to assume that those who want our votes would
work hard to secure pension-security for us? Learn the
status of your pension and demand passage of protective
pension laws, immediately.
