Don’t short change retirees
by Tracy Press
Oct 08, 2007 | 301 views | 0 0 comments | 4 4 recommendations | email to a friend | print

EDITOR,

“Someday the retired teachers in this country will have the dignity they deserve.” With the California Court of Appeals recent ruling that reducing state pension plan contributions is illegal and unconstitutional, these words spoken more than 50 years ago by Ethel Percy Andrus, founder of the National Retired Teachers Association and later AARP, are just as poignant as they were then. As more state and local governments attempt to renege on guaranteed pension plan agreements to mitigate their budget shortfalls, “Teachers’ Retirement Board v. Genest et al” brings sharp focus to a brewing crisis for thousands of teachers and civil servants across this great nation.

The California ruling is a significant win for retired teachers and hopefully sets a precedent for future proceedings. But California isn’t the only state challenging pension laws, and both taxpayers and retirees — current and future — have every reason to be alarmed. In general, public pension plans are already under-funded. Estimated pension shortfall ranges from $500 billion for state retirement systems to $1 trillion or more for all public systems. And while the problem isn’t new, resolution takes on new urgency as the first wave of 76 million-plus baby boomers inches closer to retirement in less than five years.

The AARP Foundation is committed to helping today’s older adults protect their assets and avoid poverty in retirement. In the spirit of Ethel Percy Andrus’ mission, “to put dignity back into the life of the penniless former teacher,” AARP Foundation Litigation attorneys are proud to have filed a “friend of the court” brief on behalf of the California Retired Teachers Association. With the continued erosion of retirement safety nets impacting more individuals in the second half of their lives, we will continue to work diminish the looming specter of financial insecurity and poverty during retirement for people from all walks of life.

As the charitable arm of AARP, the AARP Foundation strives to foster security and enhance and protect opportunities — like pension plans — for vulnerable individuals at risk of having insufficient resources in retirement. We commend the California Court of Appeals for preserving the contractual rights of teachers to their retirement funds. Unquestionably, short-changing retiree pension plans is unconscionable. I’m certain we can do better — for retirees and all Americans.

Robin Talbert, president, AARP Foundation, Washington, D.C
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