DEFENDING DEFINED-BENEFIT PENSIONS

WHEREAS, there is widespread pressure to dismantle defined-benefit pensions and replace them with private accounts; and

WHEREAS, most of the country’s public employees, as well as many employees of private sector organizations, rely on traditional pension plans that have proven highly efficient and successful; and

WHEREAS, the attempts to substitute private accounts for traditional plans in Florida, Nebraska, North Dakota and West Virginia have been a costly and failed experiment for both workers and taxpayers; and

WHEREAS, even the transition costs will add immensely to the taxpayer burden and provide no advantage to either beneficiaries or taxpayers:

RESOLVED, that the American Federation of Teachers vigorously defend defined-pension plans for those who are currently covered and that it join forces with the Alliance for Retired Americans and the AFL-CIO to oppose all attempts to convert defined-benefit plans to defined-contribution or 401(k)-type plans for all public and private employees.