Fed Board Member: American Pensioners Face a Cut of 55 Cents on the Dollar

Forget all the misdirecting hype about the Southern states and foreign versus domestic automakers. The REAL agenda behind the Republican assault on the Big Three is the pension plans. They are trying to use the economic downturn to gut the preexisting contracts between the auto manufacturers and the unions.

According to Thomas Mackell, chair of the Federal Reserve Bank of Richmond, ALL pensioners may have to adjust to a new world order in which they receive only "45 cents on the dollar."

A pension is a legal contract whereby workers take lower pay in exchange for the guarantee of a decent retirement. Everyone knows someone who will be affected by this.

The Repuplicans support altering or breaking legally binding contracts that are in effect with the UAW. That's because the rich people know they are going to have to pony up some big tax bucks as payback for all the years they've enjoyed champagne and caviar while the rest of us have seen our quality of life deteriorate.

So the Wall Street crowd and their flunkies in the GOP have decided that the best way to save themselves some of the expense is to break the pension contracts.

Fight back! Call your Senators and tell them you want them to defend the ALL pension contracts. If you don't, it could be you or you dad or your brother or aunt or best friend who end up holding the short end of the stick ...

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[lrinax]

Under a law enacted in 1983, upon retirement, members receive either a combination of federal pension and Social Security benefits. With the pension alone, they can afford the amount over the 72 % we gift to their medical coverage until they die.  The government pays a large share of the cost of coverage WE pay 72 percent of their premiums. Put them in Social Security with the rest of us. Then watch how fast they fix it.