Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. This is the news you need to know in the fight for a secure retirement.
Impact of Federal Layoffs on Black Workers’ Retirement Security
This week, during Retirement Security Month, NPPC’s Ariel McConnell addresses the critical topic of federal layoffs and their potential impact on retirement security for those affected, particularly Black workers, in The Hidden Cost of Mass Layoffs: Black Workers’ Retirement Security.
Ohio’s Teachers, Police, Firefighters, and Public Sector Worker Unions Launch Coalition to Stand Up for Retirement Security
This week, the Ohio Public Pension Coalition launched publicly, generating news coverage in Cleveland and around the Buckeye State.
As elected officials continue to interfere with Ohio’s public sector retirement benefits, the Ohio Public Pension Coalition (OPPC) announced its official formation on Thursday. The coalition is a partnership of six public sector unions — the Ohio Federation of Teachers (OFT), the Ohio Education Association (OEA), the Fraternal Order of Police (FOP) of Ohio, the Ohio Association of Professional Firefighters (OAPFF), AFSCME Ohio Council 8, and the Ohio Association of Public School Employees (OAPSE), along with the Ohio AFL-CIO and the National Public Pension Coalition (NPPC). Each is contributing to fund OPPC’s work.
“This coalition will highlight the many ways that hard-earned retirement income strengthens our economy and supports local communities,” said Tim Burga, Ohio AFL-CIO President. “Every worker deserves to retire with dignity, and we are here to remind legislators of the promises made — and of the contributions and sacrifices workers have made to earn that right.”
The announcement comes against the backdrop of a steadily increasing number of threats to public sector retirement benefits.
In June, an 11th-hour budget amendment radically reshaped the State Teachers Retirement System (STRS) board — replacing the long-standing board structure where the voting majority consisted of elected current or former teachers with a stake in STRS outcomes with one where politician-appointed Wall Street financiers with no personal stake in the system can constitute a two-to-one voting majority over elected teachers. The move was later overturned in court.
In February, Sen. Mark Romanchuk (R-Ontario) filed a bill announcing his intention to reform the state’s five public sector retirement systems — legislation that still awaits operative language.
And, just days ago, freshman State Rep. David Thomas (R-Ashtabula) introduced a bill that would cripple Ohio’s public retirement systems, encroach on fundamental collective bargaining rights, and break the retirement promises written into the contracts of hundreds of thousands of union workers across the state. Cleveland.com noted that House Bill 473, “would ban public employers from paying any part of their workers’ mandatory pension contributions in new contracts.”
To fight back against these threats, the coalition has support from police, teachers, firefighters, and public sector workers across Ohio.
“A strong and stable pension is a must in order to attract people to the profession of policing,” said Jay McDonald, President of the FOP of Ohio.
“After contributing to their public pensions throughout their working lives in the public service, our members and retirees deserve to elect representatives to the governing bodies of the public pension systems in numbers that guarantee they have a meaningful role in determining pension eligibility requirements, investment policies, and the level of benefits pension participants will receive,” said Sean Grayson, President of AFSCME Ohio Council 8. “As contributors to Ohio’s five public pension systems, our members and retirees have a vested interest in ensuring that the public pension systems are well funded and secure well into the future.”
Expect more news regarding public pensions in Ohio in the coming weeks.
AFL-CIO Raises Concerns About Legislation Eroding Crypto Oversight
The largest U.S. federation of labor unions has disrupted progress this week on the U.S. Senate’s cryptocurrency bill, cautioning that it fails to protect workers and would allow the crypto industry to expand its reach with too little oversight.
AFL-CIO Government Affairs Director Jody Calemine sent a letter to Chairman Scott, Ranking Member Warren, and all members of the Committee, stating in part, “this bill’s treatment of crypto assets poses risks to both retirement funds and to the overall financial stability of the U.S. economy. As drafted, this bill will enable the crypto industry to operate in broader and deeper ways within our economic system, lacking sufficient oversight or meaningful safeguards.”
According to the AFL-CIO letter, poorly regulated crypto assets are endangering pensions and retirement security.
“Unions strongly support workers having retirement benefits and regularly negotiate for pension plans in labor contracts. But retirement plans are only solvent if their assets are appropriately regulated, including protection against fraud, conflicts of interest, and other unethical practices that can lead to dramatic losses. This bill substantially weakens both federal and state enforcement tools to police these practices.
For example, it creates avenues for issuers of securities to evade SEC regulation through tokenization, reduces public disclosure requirements, and preempts state-level antifraud, securities, and consumer protection laws. While currently most pensions do not carry crypto assets because of the risks associated with them, the bill provides the facade of regulation that may make cryptocurrency and associated assets more mainstream in portfolios. Passing this legislation will allow the proliferation of assets that investors will wrongly perceive as safe.”
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.