Letter: Address problems with pension plans

The guest column Dec. 3 by Kay Daubenmier 'Urge lawmakers to reject pension proposal” is correct about the need to address critical problems with pension plans.

Many funds take in far less in contributions than they pay out in benefits. Like many union retiree health plans, negotiators over-bargain and over-promise unsustainable defined benefit plans and then people are surprised when the money runs out. Their pensions are 'put at risk” from the beginning, not the end. Employees should indeed get what is negotiated, but also be realistic about funding before accepting any promises. Truthful bargaining could require funding into savings plans, subject to the employer's ability to hold up their end, while still in business. The benefit ends up being what is actually funded. Absent a crystal ball, no one should make, or accept, a business or union promise of viability years into the future. To then expect the government to fund unsustainable promises after the fact, absent some type of insurance protection, is a recipe for disaster. It is impossible to 'stabilize” a system that can't be delivered without realistic funding, similar to ongoing issues with Social Security and Medicare.

Marshall Beard

Cedar Rapids