Older Workers' Pensions in Jeopardy
By: Source: AARP.org Date Posted: 2006-02-28 15:12:00-05:00
Congress is considering a bill that could lead to lower pension benefits for millions of older workers. This bill would allow employers to convert their traditional pension plans to cash balance plans without safeguarding the benefits that workers were promised.
Email your members of Congress today and urge them to protect older workers.
The U.S. House of Representatives and the Senate have both passed separate pension bills that allow these cash balance conversions. However, the Senate version protects older workers, while the House version does not. If the House version becomes law, older workers could see their rightfully earned pensions reduced.
AARP is very concerned about the significant legal and age discriminatory issues surrounding cash balance conversions. We believe cash balance plans can have a role to play in the private pension system if - and only if - they are designed to protect the millions of older workers who have given up wages in exchange for traditional defined benefit pensions. AARP opposes any bill that prevents older workers from receiving their rightful pension benefits when they retire.
AARP needs your help!
What you can do:
- Contact your Members of Congress and urge them to adopt the cash balance provisions in the Senate bill (S. 1783). Call AARP's Pension Protection hotline at 1-800-580-5739 or send an email through our Legislative Action Center.
- Stay tuned for more information on AARP's efforts to protect older workers.
Other Resources:
- Read AARP's Congressional testimony on cash balance plans.
- Visit AARP's Financial Planning and Retirement Guide.
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