When Social Security was signed into law on August 14, 1935, President Franklin D. Roosevelt said:

“The civilization of the past hundred years, with its startling industrial changes, has tended more and more to make life insecure. Young people have come to wonder what would be their lot when they came to old age. The man with a job has wondered how long the job would last. It is, in short, a law that will take care of human needs and at the same time provide the United States an economic structure of vastly greater soundness.”

His remarks ring true today.

This year, over 53 million Americans will receive a benefit they earned and count on from Social Security. For an economy that has failed many, Social Security provides certainty in an uncertain time.

As we reflect on the successes of Social Security, it is necessary to acknowledge the challenges that lie ahead. The National Commission on Fiscal Responsibility and Reform is currently holding closed-door meetings in Washington. Many of the commissioners favor cutting Social Security benefits, including raising the retirement age. This is despite the fact Social Security is paid for by payroll deductions and does not contribute a penny to the federal deficit.

AFSCME has joined with a coalition of 60 groups dedicated to fighting cuts to Social Security. The Strengthen Social Security campaign produced this video outlining the attacks on Social Security and what we’re up against:

Social Security remains one of the most effective and popular government programs of all time. A new poll released this week shows the public is overwhelmingly opposed to any attempts to cut Social Security benefits. Congress needs to listen to the American people and reject these misguided efforts.

Let your representatives know where you stand — tell them to strengthen Social Security… don’t cut it.

Years after George W. Bush’s failed attempts to privatize Social Security, his cohorts are renewing calls for privatization. This time they’re using deficit reduction as an excuse. Recently, House Minority Leader John Boehner (R-OH) proposed raising the retirement age to 70.

Is this for real?

Equally disturbing is the focus of a new fiscal commission that’s supposed to recommend ways to bring down the deficit by looking at all areas of the federal budget, including taxes and military and education spending. Unfortunately, the commission seems to be concentrating more on benefit programs, like Social Security and Medicare.

No surprise there since many of the commission’s members are conservatives and deficit hawks. While these folks oppose tax increases – even for the wealthiest Americans – they apparently believe it’s fine to balance the budget on the backs of vulnerable Americans. Along with privatization, they’re looking at cutting Social Security by changing the way benefits are calculated, raising the retirement age, and reducing annual cost-of-living-adjustments.

The truth is that Social Security has a surplus of $2.6 trillion, and doesn’t add a penny to the deficit. So the program shouldn’t even be part of the debate.

The real issue is all the spending over the last decade on tax cuts for the rich, two wars, and the bank bailouts. None of it paid for. All the money borrowed. Much of it from Social Security. Now that money needs to be paid back, so workers and retirees receive the full benefits they’ve earned.

The American people want to keep Social Security strong. Polls show that eight in ten reject cutting benefits to reduce the deficit.

AFSCME agrees and we have a simple message for the National Commission on Fiscal Responsibility and Reform: Don’t turn Social Security into the scapegoat for the deficit. Keep your hands off!

For more, see AFSCME Pres. Gerald W. McEntee’s remarks from Thursday’s news conference to launch Strengthen Social Security, a coalition of 60 groups dedicated to fighting cuts to Social Security:

Across the country this holiday season, Main Street is being starved while Ebenezer Scrooge and his Wall Street friends are feasting.

Just a year after our economy plunged to terrifying depths, the financial tycoons who caused the crash are reaping enormous wealth as a result. They are receiving extraordinary bonuses as 10.2% of Americans are unemployed, states are being forced to cut critical services and 8.1 million homes are at high risk of foreclosure.

David Weidner at MarketWatch just released a devastating list of facts and figures contrasting those who are starving with those who are feasting this season. Here are a few lines (check out the whole thing):

• Wall Street bonus pool estimate for 2009: $140 billion
• Combined budget deficit estimate for 50 states in 2010: $142 billion (Read this blog post on Wall Street bonuses.)
• Average bonus at Goldman Sachs Group Inc. (NYSE:GS): $550,000
• U.S. median income: $50,740
• Total bailout funds committed by the U.S. government and Federal Reserve to Wall Street and auto industry: $1.1 trillion
• Cash committed to helping homeowners refinance mortgages under the Making Home Affordable act: $50 billion
• Number of mortgages that are eligible to be modified by Bank of America: 990,628
• Total mortgages eligible for modifications actually modified by B. of A. through Nov. 10: 136,994
• Number of bank lobbyists in Washington: 2,370
• Amount spent by financial industry lobbyists this year through Oct. 26: $334 million

At this critical time in our nation’s economy it is unacceptable for Wall Street to grow richer because of a problem they caused and we all sacrificed to fix. We know exactly who deserves to get coal in their stockings this Christmas.

CNBC’s “Street Signs” host Erin Burnett says the numbers take her breath away: mutual funds consistently vote in favor of management proposals that increase executive pay — 84% of the time in 2008 — and against shareholder efforts to bring compensation in line with performance. Those numbers are from a recent report from The Corporate Library and AFSCME exposing funds’ complicity in runaway CEO pay.

On Monday, Richard Ferlauto, AFSCME’s director of corporate governance and pension investment, appeared on “Street Signs” to discuss the worst “pay enablers” that just aren’t serving the best interests of most individual investors:

Learn more about this and other issues by checking out the AFSCME-supported shareholder online resources at ShareOwners.org.

CEO pay reform remains a key element of the federal government’s financial reform agenda. The Federal Reserve recently announced that the agency will police banks’ pay policies to ensure they do not encourage excessive risk taking. The House of Representatives has passed legislation to give investors a say on pay and the Senate is considering such a move.

At the same time some companies have volunteered to give their owners a voice on compensation. Microsoft, Apple, Intel, Hewlett-Packard and Tech Data are among the 26 companies that have voluntarily agreed to give their shareholders a vote on pay. And nearly 300 financial firms that received TARP funds have held say on pay votes this year.

Richard Ferlauto, director of corporate governance and pension investment at AFSCME, appeared on CNBC’s “Street Signs” to discuss the need for long-term, performance-based and reasonable pay for CEOs:

Add your voice for pay reform by sending a message to your senators urging them to support a shareholder say on pay. Learn more about this and other issues by checking out the AFSCME-supported shareholder online resources at ShareOwners.org.

This column by AFSCME President Gerald McEntee originally appeared in the USA Today opinion section.

Public pensions offer good value for taxpayers. In addition to providing modest but secure retirements for public employees — emergency responders, firefighters, health care workers, teachers, police officers and more — defined-benefit pension plans help provide vital public services and stimulate the economy.

The average annual benefit for a public worker, who has spent a career working for our communities at modest salary, is about $20,000. On average, taxpayers fund only 25% of the pension benefit; employee contributions and investments make up the rest.

While a handful of public pension plans are experiencing funding shortfalls, most are working well. Employers should be required to make regular contributions. That would solve the problem of shortfalls and protect a system that works for employers, employees and taxpayers.

Some proposals would only make matters worse. States that have experimented with private accounts, for example, saw lower investment returns — nearly a 50% reduction. Florida, Nebraska, North Dakota and West Virginia all tried private accounts. They left taxpayers footing the bill. When private retirement investment plans fail, they leave retirees more reliant on governmental financial assistance. That costs taxpayers more in the long run and hurts our communities.

Public pensions create almost $360 billion in economic activity and 2.5 million jobs. Shifting to a private system would have a dramatic and detrimental impact on local economies because businesses depend upon the stimulus of investment income from public pension systems. In California, switching to a system of private accounts could cost citizens $7.6 billion. Experimenting with a system of private accounts could put vital public services at risk and cost taxpayers significantly more for at least 10 to 15 years.

All Americans should have retirement benefits that they can count on, not the gamble of privatized 401(k)s run by the same Wall Street bankers who drove our economy into the ditch. Pensions are proven and critical tools to provide public services, stimulate the economy, secure retirement for public employees, and provide the best value for taxpayer dollars. Pensions work, so let’s preserve them and create retirement security for everyone who works hard for a living.

Gerald W. McEntee is president of the 1.6 million-member American Federation of State, County and Municipal Employees.

This post on the Alliance for Retired Americans annual legislative conference being held this week in Washington, D.C., comes from James Parks at the AFL-CIO Now blog:

This is the year for passing real health care reform and to begin rebuilding the nation’s middle class by passing laws that give workers a free choice to join a union. And union retirees, one of the most active political groups in the country, will play a big role in bringing about change, top government leaders said.

Speaking in the opening session of the Alliance for Retired Americans annual legislative conference on Monday were U.S. Health and Human Services Secretary Kathleen Sebelius and AFSCME President Gerald W. McEntee.

Both Sebelius and McEntee told the delegates that any health care reform must include an option for a public plan and must not tax the health benefits that workers and retirees receive through their employers.

Pointing out that President Obama received a higher percentage of votes from union retirees than any other group of voters, McEntee, who heads the AFL-CIO Political Committee, said health care reform is just one of the ways that “we’re taking back our nation for working families and retirees.”

“They [Republicans] are trying to take away our victories. George Bush stole part of the American Dream. He decimated the middle class, created the biggest gap in wealth in decades and left us with two wars.”

McEntee urged the seniors who will lobby lawmakers Wednesday to send a message to Capitol Hill.

“This is our best chance [to take back America]. We have to take it. We know what we’re up against. Go to Capitol Hill and tell them we’re kicking ass and taking names.”

Read more at the AFL-CIO Now Blog.

It’s no mystery. The economy is ailing, working families are fighting hard to make ends meet and this week alone, American companies reported as many as 65,000 job cuts.

You’d think that in these times of duress everyone would be tightening their belts and pulling together to jumpstart the economy, right? Well, not Wall Street bankers, that’s for sure. According to a report by the New York State comptroller, financial executives received a whopping $18.4 billion in bonuses for 2008.

President Obama condemned their behavior as the “height of irresponsibility,” adding that:

“It is shameful. And part of what we’re going to need is for the folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility.”

That’s right. We are talking about the same banks and investment firms that were bailed out last year to the tune of $700 billion because of their own financial irresponsibility. If taxpayers and shareholders take huge losses, there should be no bonuses. Period.

This is why for years AFSCME has spearheaded the fight to curb executive pay. Congress should give shareholders a “say on pay” on CEO compensation and “golden parachute” severance agreements. Not only is the compensation awarded to CEOs outrageous, but shelling out excessive amounts of money to a few greedy individuals genuinely damages the economy.

In the wake of our current financial crisis, the AFSCME Employees Pension Plan has announced its 2009 shareholder program with an emphasis on reasonable executive pay and more director accountability.

The AFSCME Plan is an institutional shareholder with more than $850 million in assets that works to ensure that the retirement benefits promised to public employees are safe and secure. In 2006, the AFSCME Plan was first to file “Say on Pay” proposals requiring shareholder approval of executive compensation.

In a statement released today, AFSCME President Gerald W. McEntee explained the importance of the 36 shareholder proxy proposals submitted for consideration at annual meetings this spring:

“The failure of boards to properly assess risk, coupled with an emphasis on short term results that produced sky high pay for executives has left us in the worst financial mess since the Great Depression. These proposals will encourage corporate executives to avoid the type of short-term decision-making that has wreaked havoc upon our financial markets.”

Proposals have been filed at: Abercrombie & Fitch; Allstate; American International Group; Ameriprise Financial; Apple; Bank of America; Bank of New York Mellon; Charles Schwab; Citigroup; ConocoPhillipsVS Caremark (CVS); Danaher (DHR); Dow Chemical (DOW); E*TRADE Financial (ETFC); Equifax (EFX); General Dynamics (GD); Honeywell (HON); Huntington Bancshares (HBAN); Ingersoll-Rand (IR); IntercontinentalExchange (ICE); JPMorgan Chase (JPM); Macy’s (M); Moody’s (MCO); Morgan Stanley (MS); Nabors (NBR); Northrop Grumman (NOC); Occidental Petroleum (OXY); Office Depot (ODP); Raytheon (RTN); Safeway (SWY); Tenet Healthcare (THC); Textron (TXT); Valero Energy (VLO); Vulcan Materials (VMC); Wachovia (WB); and Walt Disney Company (DIS).

Read the press release for more.

This entry by AFSCME President Gerald McEntee was originally posted on The Huffington Post.

Right-wing critics of public employee pensions will use any angle to convince folks that these plans are bankrupting states, cities and towns. In the Wall Street Journal this week, Steve Malanga blames pension plans for today’s economic difficulties and in the same piece urges governments to sell off their assets.

Malanga fails to mention that most public pension plans are in good financial condition and does not note that states built up rainy-day funds and cut taxes during this time. It’s a fact that most of us are required to contribute to our plans regularly, and our contributions, along with our employer’s, are invested to earn additional income. While the economic downturn has caused some dips in funds, estimates of the ratio of pension assets-to-liabilities for state pension plans indicate that they are in good shape. Most plans have diversified their investments so the impact of today’s market losses is softened. Over the last twenty years, most pension funds have had a good rate of return, even during downturns, because they keep fees low and use professionals to routinely beat market benchmarks.

Pension funds, with assets from employers and employees, are an essential part of this nation’s capital market, particularly at a time of economic crisis such as the one we are currently facing. Public employees have sacrificed pay increases and made contributions in order to ensure that their pension plans are adequately funded. And governments have also been prudent about building up their reserves — as of July 2007, state rainy day funds stood at 10% of total budgets, which would have been sufficient to deal with a moderate cyclical recession. Of course, what we’re seeing is far worse.

The truth is that in these times of real budget challenges, pensions make good economic sense. Pensions put money into the economy, offer real retirement security to workers, and allow government employers to recruit and retain a quality workforce to make the vital public services that America relies on happen. The investments made by pension funds have helped make America work and can help turn our economy around in the days and months ahead.

Most Americans recognize that today’s government challenges are the result of an economic downturn rivaling that of the Great Depression and a Bush Administration that willfully ignored the economic problems. Malanga himself acknowledges several times in the piece that “rapidly declining tax collections” are the cause of the states’ budget problems. Yet this fact is ignored in the diagnosis and prescription of the fiscal crisis we are in.

Malanga also argues for privatization of roads and other public goods. The solution is not privatization, which all too often means that the public pays more and gets lower quality services while public workers are laid off and corruption scandals make the news. Americans need quality public services and efficient governments that help achieve real progress for communities. While some view selling public assets like toll roads to private firms as a panacea for infrastructure investment, the public is fiercely — and rightly — opposed to selling our roads for the pursuit of private profit.

Public pensions are providing benefits for the economy, retirement security and taxpayers. As states find their budgets under pressure, it is important that states put in place procedures and practices that will mitigate against rosy projections regarding investment income and provide a means to pay for the benefits their employees have earned.

While improvements can always be made, pensions are not the problem. The economy is the problem, and the President and Congress need to take real steps to revitalize the economy and help the American people.