Union Information

NYSNA nurses say, ‘Fix the PPA’

• Update: NYSNA and NFN join to support pension plan relief
• Related: US Senate testimony: “Pensions in Peril – Helping Workers Preserve Retirement Security Through a Recession” - Presented by Randy G. DeFrehn, Exec. Dir.,
  Nat'l Coordinating Committee for Multiemployer Plans
• “Why We Need to Change the Pension Protection Act of 2006” (.pdf format; Adobe Acrobat Reader required)

The current economic crisis has had an unexpected impact on all defined benefit pension plans. The crisis is worsened, due to the provisions of the Pension Protection Act (PPA) of 2006.

Designed to ensure that employers adequately fund their pension plans, the PPA required that the trustees of pension plans in the “red zone” develop at least one plan to get them into the “green zone” within a certain period of time. This plan, commonly referred to as the default plan is required to include reductions in benefits.

The NYSNA Pension Plan, which covers approximately 13,000 RNs, was more than 100% funded in January 2008. After the collapse of the investment market, it is projected that the Plan will have a funding deficit within the next four years. The NYSNA Plan trustees took advantage of an opportunity offered by Congress to freeze its green zone status for one year. A notice was sent to plan participants in April; copies of this notice are available by contacting the NYSNA Pension Plan and Benefits Fund.

According to a recent study, more than half of the defined benefit plans in the U.S. chose to freeze in the green zone. The most common reasons were to take advantage of any turnaround in the market and wait for possible amendments to the provisions of the PPA.

It’s time for Congress to solve the pension crisis

NYSNA members and staff who lobbied on this issue on Capitol Hill in May found that many Congressmembers were unfamiliar with the pension crisis.

We need all of our members to inform their U.S. Representatives that, unless changes are made to the PPA, hardworking nurses will face reductions in the benefits they have been counting on for their retirement years.

For more information, download our brochure (.pdf format) on our PPA campaign. Even better, send us an e-mail and volunteer to help spread the word.

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