AFL-CIO Calls on Bush Administration to Fight to Preserve All Workers’ Pensions

After mounting pressure from Congress, the public and union members, Secretary of Energy Bodman yesterday withdrew the Bush Administration’s April order to stop reimbursing Department of Energy (DOE) contractors for the cost of traditional, defined-benefit pension and comprehensive medical plans.

The AFL-CIO called the decision a victory for working families at a time when vanishing retirement security and rising health care costs are squeezing workers in all industries.

The DOE said in April it would only pay contractors for the costs of 401(k) style retirement plans and only reimburse for so-called “market-based” health plans that typically offer fewer benefits at higher costs to workers. Bodman suspended the decision for a period of one year while the DOE further studies the issue.

“While we’re pleased the Bush Administration has decided, for now, not to follow through on its decision to strip DOE workers of their pensions and health care, yesterday’s announcement didn’t go nearly far enough,” said AFL-CIO President John Sweeney. “DOE workers, many of whom are entrusted with vital jobs that contribute to our national security, deserve to know they have reliable, secure retirements to look forward to. Working people need a sustained commitment from our leaders to tackle the growing retirement security crisis, not back-door assaults on financially healthy pensions and the promise of further study to address the issue.”

“The AFL-CIO calls upon the Administration to take immediate steps to secure the pensions and health care coverage of all federally funded workers and promote responsible policies that will strengthen and preserve American workers’ retirement security for generations to come,” said Sweeney.

Contact Steve Smith 202-637-5018