Pension Benefits

In her State of the City address Monday, Mayor Stephanie Rawlings-Blake called for employee contributions to the current non-contributory pension system for "civilian employees," and while I agree and understand the subtle distinction made, my fear is that I may be in the minority of taxpayers ("Trash fee, job cuts urged," Feb. 12). Perhaps lost in the "civilian employees" reference is that the "other employees" are Baltimore's public safety (fire and police) employees, who currently contribute 9 percent of their wages, which will rise to 10 percent (twice the 5 percent amount by elected officials)

The Baltimore Symphony Orchestra, which has slipped back into deficit territory partly because of pension fund obligations, has planned a concert to do something about that. The program has what should be a big draw -- music by celebrated film composer John Williams. Proceeds will benefit the BSO musicians' pension fund, and since Williams is donating his services, that gives those proceeds all the more potential. Williams, who has earned five Oscars and nearly 10 times that many nominations, will lead the BSO in selections from his scores for such hits as "Star Wars" and "E.T," not to mention the sagas of "Indiana Jones" and "Harry Potter.

TENS OF thousands of Americans don't receive their full pension benefits because of errors by employers, according to a federal audit released last week.The audit, by the federal Pension Benefit Guaranty Corp., cited employer ineptitude and confusion about federal pension laws.It found that 13.7 percent of the 2,791 participants in the study were being underpaid, compared with 1.7 percent of 2,009 participants in a 1988 audit.The latest audit was based on a sample of 370 small-company plans that were terminated and assumed by the PBGC.

I have read multiple articles on both sides of the sequester issue ("Sequester debates hides the cold facts of our budget crisis," March 5). I have read how the American people who have made their fortunes here need to tighten their belts and give up some things for the good of the country. I have read how working people need to tighten their belts to help those who are (or may not be) less fortunate. What I have not read in any article so far is what are the politicians giving up?

General Motors Corp. said yesterday that it would freeze or eliminate the traditional pension benefits of its U.S. salaried workers and move newer hires into a plan that relies more on 401(k) investments as the automaker continues to cut costs. The changes start next year and affect about 42,000 workers, including top executives. The automaker, which lost $8.6 billion last year, is shifting away from the guaranteed lifetime monthly pension payment plan it helped pioneer in the 1940s. "These decisions are difficult, but necessary to position GM for future success," Chief Executive Officer G. Richard Wagoner Jr.said.

The last major legal effort to strip generous pension enhancements for a group of top Anne Arundel County officials, most of whom no longer work for the county, failed yesterday when an appellate court ruled that the pension changes of the 1980s were legally adopted. "The people never win anything," said Robert C. Schaeffer of Severna Park, chairman of the board of the Anne Arundel County Taxpayers Association. The organization sued the county to try to remove the benefit changes that left the pension plan underfunded by nearly $7 million.

CHICAGO -- UAL Corp.'s United Airlines, the world's largest airline, reached a tentative first contract yesterday with its newly unionized ticket agents and reservations clerks, who are among the industry's lowest-paid workers.The one-year agreement with the International Association of Machinists would give the roughly 19,000 service workers improved pension benefits and a 5.5 percent raise as of April 13, 2000. It also would eliminate a separate, lower pay scale for workers hired after UAL's 1994 employee buyout.

More than 750 people who worked for a half-dozen Baltimore companies in the 1970s may be eligible for additional pension benefits worth thousands of dollars each under a proposed settlement of a class-action lawsuit.Those who may be affected include 302 former Carling National Breweries employees and 455 who were employed by Constant Care Community Health Center, Graphic Arts Finishing Co., H. E. Koontz Creamery Inc., Haussner's Restaurant Inc. and John D. Lucas Printing Co., according to a list released yesterday by the Pension Benefit Guaranty Corp.

Top Gary administration officials would see their pension benefits increase under new legislation designed to save Anne Arundel's retirement system from what they have described as a future financial "train wreck."The measure, which the County Council could approve as early as Monday, would pay 39 top county officials an average of $5,000 more each year in retirement benefits. The move would cost the county as much as $200,000 a year, according to a revised fiscal analysis of the bill. Among those who would benefit are the seven County Council members and roughly 20 appointed officials in the Gary administration.

Shoppers Food & Pharmacy workers at some Maryland and Virginia stores ratified a new, two-year contract Thursday that increases wages, maintains pension benefits and funds health benefits without raising workers' costs, the union local representing the workers said Thursday. The collective bargaining agreement between United Food & Commercial Workers Local 400 and Shoppers, a division of Minneapolis-based Supervalu, applies to 2,500 grocery workers at Shoppers in Northern Virginia and in Montgomery, Prince Georges, Calvert, St. Mary's and Charles counties.

In her State of the City address Monday, Mayor Stephanie Rawlings-Blake called for employee contributions to the current non-contributory pension system for "civilian employees," and while I agree and understand the subtle distinction made, my fear is that I may be in the minority of taxpayers ("Trash fee, job cuts urged," Feb. 12). Perhaps lost in the "civilian employees" reference is that the "other employees" are Baltimore's public safety (fire and police) employees, who currently contribute 9 percent of their wages, which will rise to 10 percent (twice the 5 percent amount by elected officials)

When he evaluated his retirement options five years ago, Assistant State's Attorney Fred Paone settled on a deal to collect his pension while working as a part-time prosecutor. Now, Anne Arundel County has sent Paone a $115,672.50 bill demanding that he repay retirement benefits and a notice that his future pension checks will be cut as long as he works for the county. An internal audit had revealed that Paone, 61, and three other workers at the Anne Arundel state's attorney's office were illegally collecting full pension payments while working part time.

Shoppers Food & Pharmacy workers at some Maryland and Virginia stores ratified a new, two-year contract Thursday that increases wages, maintains pension benefits and funds health benefits without raising workers' costs, the union local representing the workers said Thursday. The collective bargaining agreement between United Food & Commercial Workers Local 400 and Shoppers, a division of Minneapolis-based Supervalu, applies to 2,500 grocery workers at Shoppers in Northern Virginia and in Montgomery, Prince Georges, Calvert, St. Mary's and Charles counties.

Members of the Baltimore County Police Executive Corps have agreed to higher pension contributions and less sick time in exchange for job security over the next three years. Under the agreement, announced Tuesday by County Executive Kevin Kamenetz, the members are guaranteed no layoffs or furloughs between fiscal years 2013 and 2015. The bargaining unit is made up of 34 sworn officers ranked captain and above. They are not unionized. As part of the deal, current members will contribute an additional 1 percent of their salaries to their pensions starting July 1. They now contribute between 7 and 8 percent.

Union members from around Baltimore are planning a rally Monday to protest legislation by Baltimore County Executive Kevin Kamenetz that would reduce some county employees' pension benefits. County Council members are scheduled to vote Monday on the proposal, which would end the practice of letting members of the American Federation of State, County and Municipal Employees use overtime in their pension calculations. AFSCME represents workers in the county's Department of Recreation and Parks, the Department of Public Works, and other agencies.

Public-employee unions are urging Baltimore County Council members to reject a proposal by County Executive Kevin Kamenetz that would cut pension benefits for some workers, saying it sends a bad message to labor leaders and undermines negotiations. The legislation, discussed Tuesday by council members, would end the practice of using overtime to calculate retirement benefits for members of the American Federation of State, County and Municipal Employees. The union represents employees in the Department of Public Works, the Department of Recreation and Parks and other agencies.

Thursday, a commission headed by former House Speaker Casper R. Taylor Jr. will convene in Annapolis to study how to put Maryland's $33.7 billion public pension fund in better financial standing. While there are any number of possible fixes for this complex problem, the solution will fall short if it fails to move state employers away from traditional pension benefits and toward a defined contribution system such as the 401(k). That idea is likely to infuriate the unions that represent state workers.

John S. Chudzik, a retired labor attorney and advocate for medical and pension benefits for construction workers, died of acute kidney failure Thursday at the Presbyterian Home of Maryland. He was 93 and a Parkville resident. Born in Yonkers, N.Y., he joined the Civil Conservation Corps in the 1930s and worked in forest reclamation. He later enlisted in the Navy and worked in intelligence during World War II in Washington and Hawaii. After the war, he settled in Washington and earned a Bachelor of Arts, a law degree and a doctorate in law from George Washington University.

At their work session this afternoon, Baltimore County Council members plan to discuss a proposal by County Executive Kevin Kamenetz that would end the practice of using overtime to calculate pensions for members of AFSCME, the union that represents workers in the Department of Public Works and other agencies. Last week, AFSCME threatened to file an unfair labor practices complaint , saying that the issue is being discussed in negotiations.   Kamenetz's administration calls the proposal a way to save taxpayer dollars, saying that AFSCME workers are getting “an arbitrary perk that sweetens pension benefits for a single class of employees.” The administration says the bill would save $502,000 a year, based on the amount of overtime worked by AFSCME members.

A union that represents hundreds of public workers in Baltimore County is threatening to file an unfair labor practices complaint against the county, saying a pension bill introduced by County Executive Kevin Kamenetz attempts to sidestep ongoing contract negotiations. The bill, pending before the County Council, would end the practice of using overtime wages to calculate pension benefits for members of AFSCME, whose members include laborers in the Department of Public Works and other agencies.