Talking Points - July 2008
Closer to the finish line
By Fred Herschbach, President
I would like to take this opportunity to applaud the membership for all their support on this latest pension fix. As most of you know, this is the fourth bite at the apple. In 2004, the contribution factor for those with less than 10 years was changed to 2.625 percent. Then, beginning July 1, 2005, any member under 10 years got their factor reduced to 2.25 percent. Then we had the 2006 Pension Restoration and now, we are dealing with this most current fix. As your president, I can assure you the Trustees have lived and breathed this latest fix for 19 months. We feel this latest restoration will take our pension to the next level and secure solvency for future generations of Operating Engineers. The members have been very supportive of changes happening July 1, 2008.
When I was traveling to the latest round of Pension Restoration meetings, the members surely didn’t care for the changes that were made, but they definitely understood the reason behind those changes. This administration was elected to tell it like it is. We have done that and will continue to do so. The membership accepted the fact that what we had to do with the pension, we had to do now. A lot of excellent questions were asked, as members were involved at the meetings. Many ideas were given to us on investing pension money. We listened to you and terminated the services of our last investment consultant. We hired a new company, Investment Performance Services (IPS). This company has taken the bull by the horns and is in the process of evaluating our managers. The Investment Oversight Committee meets regularly along with IPS to change our investments to get better returns. All in all, it will take quite a while to get where we need to be, but we will get there.
One story I would like to share with you all is one from a recent Redding District meeting. After we went through the Power Point presentation, we opened up the discussion for questions, and a retiree by the name of Wayne Rose, a 48-year member, asked if he could somehow take part of his pension and give it back. He said Local 3 had been good to him and his family, and he wanted to take part of his pension and give it to another brother and sister in need. Now, that is unionism at its finest. Here is a brother who helped start our pension in 1958 with a nickel and is living on his retirement, and he is willing to take a part of what he earned and give it back to the pension plan to help get our pension where it needs to be. This is not only a lesson on unionism but a lesson on what it is to be a selfless and compassionate human being. We could all learn a thing or two from him.
The other officers had similar stories at their respective meetings, stories of members willing to give whatever they could to help out a fellow member. So, thank you for sticking together. Together, we will weather the storm.
In closing, I want to thank you also for getting out the vote June 3. Now, we can look ahead to the General Election Nov. 4. Our work is never done, but with everybody’s support, we get closer to the finish line.
In solidarity.
