Union Information

Image: NYSNA Pension Plan Rally - March 2009Update: Protect your pension!

Considerable challenges lie ahead… get involved and join the campaign

Last year at this time, the NYSNA Pension Plan was at risk for not meeting future funding requirements due to the economic downturn and the stricter accounting requirements of the 2006 U.S. Pension Protection Act.

The Pension Plan’s employer trustees announced that they intended to certify the plan as “red” and reduce benefits in order to stabilize it. NYSNA responded with a successful grassroots campaign that persuaded the employer trustees to accept the one-year relief provided by the 2008 Worker Retiree Recovery Act (WRERA).

Under the WRERA, trustees certified the plan as “green,” in order to allow economic recovery and legislative relief through the U.S. Congress. The relief provided under this act expired on Dec. 31, 2009.

Although NYSNA and the National Federation of Nurses worked hard to win sponsors for two major bills in the Congress – and the bills won a great deal of support – neither bill had passed by the Dec. 31 deadline, due to the healthcare reform bill taking political priority.

Because the WRERA was not extended, Pension Plan trustees will not have the option this year of extending the plan’s “green” status. This means that the NYSNA pension plan is again facing a deadline of March 31 to decide on its financial status for the coming year.

“This fight is far from over,” said Nancy Kaleda, special projects manager for the Economic and General Welfare Program. “As with any legislative initiative, it takes continued effort to succeed. So NYSNA’s efforts will continue.”

Although NYSNA is hoping some form of pension reform legislation is to be included in Congressional bills concerning jobs or taxes, NYSNA does not expect it to be the comprehensive relief our members need. Therefore, NYSNA will be renewing its push to see that the two bills that will help pension plan members are reintroduced. It will be conducting a series of visits to local offices of Congressional representatives and holding regional meetings to explain the issue with Pension Plan members and discuss strategy.

NYSNA nurses: “Fix the PPA!”

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.

Image: NYSNA Staff and Members, Washington, DC - May 2009It’s time for Congress to solve the crisis

NYSNA members and staff who lobbied on Capitol Hill in May, 2009 found many Congressmembers unfamiliar with the pension crisis.

NYSNA members should 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) and send us an e-mail and volunteer to help spread the word.