AFSCME Maryland Members Take Action on Pension Cuts

AFSCME members turned out to the Joint Committee on Pensions meeting on December 8th in Annapolis. It was expected that the committee would take action to avoid a cut in pension benefits due to a negative cost-of-living during the past year. The committee decided instead to wait until January to decide on this issue. Committee members have some expectation that the economy may improve by that time and action will not be necessary.

AFSCME members made many calls to legislators when this issue came to light in October. At that time, legislators were informed that because pension cost of living increases were tied to the Consumer Price Index (CPI), a decrease in the CPI would also mean a decrease in pension benefits.

AFSCME will continue to watch this issue closely and reach out to members and retirees to speak out if necessary. You can learn more about this issue and the hearing from the Maryland Reporter:

"The American Federation of State, County and Municipal Employees, the state’s largest public work force union, is already pushing back against the possible pension cut. Union officials brought about 10 members along to observe the hearing.

Sue Esty, assistant director of AFSCME Maryland, said the committee was 'punting to the legislative session,' but she promised a strong reaction from the union if a benefit cut were imminent.

'First of all, when we retire, we’re asked to live off of one third of the income that we had,' said Sylvia Seymour, a retired Department of Human Resources worker and AFSCME member from Baltimore. 'We had to adjust to live with that one third, and to cut that would really be a hardship. It would be a disaster.'"