Pension Plans

The year was 1980, and Bonnie Busby, who had put in 17 years on a Continental Can assembly line in St. Louis, was just months away from vesting in a union-negotiated pension plan. Busby, 50, says that when the company laid her off in November that year, she was assured that the layoff was temporary. She said company officials for the next five years repeatedly told her that she was likely to be rehired soon.

The International Alliance of Theatrical Stage Employees and the major studios have reached a tentative agreement on a new contract that averts a potential showdown. The so-called basic agreement covers about 35,000 members who belong to IATSE's Hollywood locals and includes camera operators, set decorators, grips and others who work behind the scenes on movies and TV shows. Under the proposed deal reached late last night, IATSE members would receive a 2% annual wage increase over three years — in line with raises negotiated by other entertainment unions.

Argentina, which is defaulting on its debts, said it will seize $2.3 billion of retirement savings by forcing private pension funds to transfer the money to a state bank in exchange for Treasury bills. The government targeted savings every worker is required to set aside from their paychecks since the creation of a private pension system in 1994, after the International Monetary Fund withheld a loan.

The largest union representing Hollywood's technical workers has begun contract negotiations with the major studios amid concerns that rising healthcare costs could lead to cuts in health and pension benefits for below-the-line crew members. The largest union representing Hollywood's technical workers has begun contract negotiations with the major studios amid concerns that rising healthcare costs could lead to cuts in health and pension benefits for below-the-line crew members. The International Alliance of Theatrical Stage Employees — which represents more than 100,000 entertainment industry workers, including cinematographers, set decorators and prop masters — on Wednesday began negotiating a new contract with the Alliance of Motion Picture and Television Producers.

The finances of some of the nation's top pension plans improved in March, the first such gains since July, according to a study released Thursday. In its monthly survey of the nation's 100 largest pension plans, global consulting and actuarial firm Milliman found that funding improved by $48 billion. Nonetheless, these plans, which up until last summer had a surplus of funds, were still below the 100% funding level they will eventually be required to meet by law.

Galen Dean of Yucaipa has worked on and off for Southern California Edison Co. for 29 years. As he puts it, he's done "pretty much everything except climb poles. " When he retires in four years he expects to get about $1,500 a month from his Edison pension plan. And he has no problem with the fact that ratepayers will foot the bill for at least a portion of those payments. "It's totally justified," said Dean, 59. "Our salaries are lower than what private enterprises pay. The pension helps make up for that.

There is a link between "Pay Gap Widens Between Workers, Execs" (Business, Aug. 30) and "New Pensions May Violate Laws, IRS Says" (Sept. 1). If executives can force the new cash-balance pension plans on employees, the pay gap will widen further. With the pensions of senior employees reduced by 30% to 50%, we will have a substantial number of retirees who are not financially independent. JOHN CHEVEDDEN Redondo Beach

Bruce Dow, the beleaguered chief executive of the Screen Actors Guild-Producers Pension and Health Plans, which have been rocked by allegations of misconduct, has taken a leave of absence. Dow has "requested and been granted a leave of absence from his duties," trustees for the plans said late Wednesday. In an interview, the veteran plan manager said he requested a 60-day break on medical grounds and is not resigning his post. The pension plans' chief operating officer, Christopher Dowdell, will take on day-to-day management responsibilities, the trustees said.

The head of the Equal Employment Opportunity Commission promised a broad review of new pension plans that critics contend violate age discrimination laws. "We want to hear from all stakeholders in order to reach fair conclusions" about "cash-balance" pension plans, EEOC Chairwoman Ida Castro said. "We intend to meet with and receive feedback from the employer, labor and civil rights communities." Castro met Tuesday with Rep. Bernard Sanders (I-Vt.

Re "The Flight From Pensions," editorial, May 12: The last two decades have seen the airline carriers plagued with bankruptcies and collapse. Yet the companies continue with give-away "mileage" programs? How can that be? American business used to be more of a smart, efficient, productive, market-driven, covenant-keeping place that nourished our country. It seems now that most corporate businesses have some cheap, clever, compromise scheme or trick from bandit/pirate CEOs, caused by or partnered with government and/or a corrupt legal system that almost always comes back to bite us. United's broken pension promise is just the latest.

It's the norm in January: After the governor proposes a new budget and delivers his State of the State address, legislators slide into hibernation until spring. Oh, there's some rustling around in the dens — a few committee hearings, brief floor sessions — but no strenuous activity, no risk taking until May, when deadlines sprout and the governor revises his budget proposal. Not every year follows that pattern — last March, the governor and the Legislature made sharp spending cuts — but winter 2012 has all the signs of the rhythmic long nap. So it's not surprising that there seems to be a look of lethargy among legislators concerning the sensitive issue of public employee pensions.

Bruce Dow, the beleaguered chief executive of the Screen Actors Guild-Producers Pension and Health Plans, which have been rocked by allegations of misconduct, has taken a leave of absence. Dow has "requested and been granted a leave of absence from his duties," trustees for the plans said late Wednesday. In an interview, the veteran plan manager said he requested a 60-day break on medical grounds and is not resigning his post. The pension plans' chief operating officer, Christopher Dowdell, will take on day-to-day management responsibilities, the trustees said.

Newport Beach may seem like an unlikely place for a labor fight, but union officials are striving to rally community support after leaders of the wealthy city asked them to start contributing more to their own pension funds. As contracts for police, firefighters and lifeguards are about to expire, union officials sent out a mailer last week in an effort to get residents to support their cause. City administrators, meanwhile, countered with an open letter explaining why they think employees should pay more toward their retirements.

Gov. Jerry Brown's proposal to alter public pension benefits is courageous but legally dicey, and key pieces of it have not been fully developed, according to a new report from California's nonpartisan Legislative Analyst's Office. The report praised the governor for offering "a bold starting point for legislative deliberations" on pensions. And it lauded Brown's call to combine a 401(k)-style savings plan with the existing guaranteed-benefit system and raise the retirement age for most future public employees from 55 to 67. Those proposals would save the state millions of dollars down the road.

One way or another, California will get public pension reform. When the governor and every expert who has looked at the books use the word "unsustainable" to describe California's public pension systems, they're not kidding. If the Legislature doesn't fix pensions, the voters will have their chance. And if that doesn't work, the bankruptcy courts may have to do the job. Public employee unions can spend a small fortune to defeat the plan Gov. Jerry Brown has offered, or they can spend a much larger fortune to ask a frustrated and angry electorate to reject a proposed November ballot initiative that would cap public-agency retirement spending and result in harsher changes for their workers.

Reporting from Sacramento -- Gov. Jerry Brown proposed a sweeping overhaul of California pensions that would require public employees to pay more for their retirement and cut benefits for those hired in the future, setting the stage for a fierce battle with fellow Democrats and some of his main political supporters: unions representing government workers. Brown's 12-point plan, announced Thursday, would require that all public workers have at least half the cost of their pensions deducted from their paychecks.

99 Cents Only Stores Inc. has agreed to be sold in a deal valued at about $1.6 billion, the deep-discount retailer said Tuesday, as investors are eyeing dollar stores that have grown in popularity during the economic downturn. The City of Commerce chain will be acquired by Los Angeles private equity firm Ares Management and the Canada Pension Plan Investment Board for $22 a share in cash, a 7.4% premium over Monday's closing price of $20.49. The chain said the current family management team will remain.

A former employee of the Screen Actors Guild pension and health plans has filed a complaint alleging that he was fired for attempting to uncover an embezzlement scheme involving a previous executive of the funds. Craig E. Simmons, a former human resources executive with the SAG plans, alleges in a complaint filed this week with the Labor Department that he attempted to blow the whistle on a $5-million to $10-million embezzlement scheme by the funds' former chief information officer, Nader Karimi.