FOR IMMEDIATE RELEASE: April 1, 2011                                                 download PDF
CONTACT: Jennifer Munt, 651-357-8544

Statement by Eliot Seide, director of AFSCME Council 5, Minnesota’s largest public employee union, on the pension study released today by the Minnesota Public Retirement Systems.

“This study definitively shows that Minnesota taxpayers can’t afford a risky plan to privatize public pensions; the shift would cost $2.7 billion over the next decade. There is absolutely no reason to force public workers to risk their hard-earned retirement savings on Wall Street. Privatizing pensions is as cruel as privatizing Social Security – it will send seniors into poverty.

“A promise is a promise. For years, public workers have accepted lower wages in exchange for a guaranteed retirement benefit. The average retiree has modest pension benefits of $14,000 a year. Combined with Social Security, it’s the difference between dignity and poverty.”

AFSCME members have already taken responsible action to ensure that there are sufficient funds to pay pension benefits for retirees, active employees and future hires. For example:

• We fixed a $4 billion funding gap by raising employer and employee contributions and capping our benefit increases at 5 percent.
• We supported legislative action to reduce our cost-of-living increase (see benefit adjustments recommended by MSRS and PERA). The Pension Reform Act of 2010 reduced pension costs by nearly $6 billion.
• Pension reforms and strong investment returns have stabilized the three pension funds. Today, MSRS is 83% funded, PERA is 75% funded, and TRA is 74% funded. There’s no need for taxpayers, public workers or legislators to panic.

AFSCME Council 5 is a union of 43,000 public and non-profit workers in Minnesota. We advocate for excellence in public services, dignity in the workplace, and opportunity and prosperity for all workers.
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