Call to Action!!!  

 

PENSION REFORM BEFORE CONGRESS


March 19, 2001

Here's a rare opportunity to help achieve needed changes in our 457 Deferred Compensation Plan, the deficiencies of which are explained below.

If we all send e-mails to our Congressperson and our two Senators, we can dramatically raise the awareness level of federal lawmakers.

All it takes is a few clicks

1.Click the e-mail your legislators link under the moving scroll on the PEF Home Page

2.Then click the send e-mail to Federal Legislators link on the NYSUT Legislative Webpage

3.Type in your zip code at the next prompt

4.Check the two senators and and one representative to whom you are writing

5.Fill in your name and address

6.Place the following message in the e-mail box:

I am one of 55,000 members of the New York State Public Employees Federation eligible to participate in a 457 Deferred Compensation Plan. I am asking you to support the Portman-Cardin Bill which provides for comprehensive retirement security and pension reform. Whether Americans save under a 401k, a 403b, or a 457 plan, they deserve equal opportunity and protections. Thank you.

7. CC pefonline@pef.org when you send an e-mail.

8. Encourage other members to send e-mails in support of Deferred Compensation Reform.

 

PENSION REFORM BEFORE CONGRESS

The AFT's campaign to enlist lawmaker support for public pension reform legislation is moving forward. Reps. Rob Portman (R-Ohio) and Ben Cardin (D-Md.) introduced the Comprehensive Retirement Security and Pension Reform Act on March 14; so far the bill has 260 co-sponsors. The bill would give employees in 457 plans, also known as deferred-compensation plans, the same rights as those who have 401(k)s. Under current rules, public employees and educators enrolled in 457 plans must elect how their benefits are to be paid when they leave or retire from public service. That election is irrevocable. Portman-Cardin would allow 457 plan holders to roll their pension funds into an individual retirement account when they leave or retire from public service, which would allow them to manage their money and withdraw funds as needed. The portability provisions also apply to 403(b) plans, which cover many teachers. The bill allows both 403(b)s and 457s to be used for purchase of service credits in public sector defined-benefit plans. The bill also increases the employee contribution maximum from $8,500 to $15,000.

The AFT began its campaign for public pension reform legislation in January when the union joined 26 other organizations in a mailing to every member of the U.S. House of Representatives seeking co-sponsorship of the measure, which was originally introduced in the 106th Congress. That bill passed the House by a vote of 401 to 25. AFT is now urging its members to contact their federal lawmakers to express support for Portman-Cardin.