Legacy Cost Crisis
WHEREAS, the automobile industry, United Steel Workers, and the airline industry have pension plans which provide workers with much-needed preset benefits upon retirement; and
WHEREAS, the Department of Labor estimates that the underfunding of pensions have increased from $164 billion to $450 billion (―underfunded‖ means the pensions collected and investment for current workers, retirees and their survivors are insufficient to meet their projected liabilities); and
WHEREAS, declining stock market values and artificially low interest rates used for discounting pension obligations, combined with an aging and shrinking work force, according to experts have increased the costs of defined benefit plans; and
WHEREAS, the Pension Protection Act of 2006 signed into law on August 17, 2006 provides companies with seriously underfunded defined benefits with plans mandating contributions at a faster rate and face certain restrictions.
THEREFORE, BE IT RESOLVED, that the NAACP as well as labor unions and other entities that share this concern, urge the President of the United States and the United States Congress to fully enforce and fund the Pension Protection Act of 2006; and
BE IT FINALLY RESOLVED, that the bailout of the automobile industry include the full―legacy costs.