Breach of Contract
Companies looking to cool their pension problems are freezing benefits for the workers least likely to complain.If you're commenting on a blog, this probably means you are going to get hurt. Pensions and other benefits are an implied contract in which you, the employee, trade a portion of your salary in return for a benefit that the company can buy for you more cheaply than you can. So you take a cut in pay for like, say, 50 years (remember, Social Security won't kick in at 62 any more), and then you get a retirement income. At least that is the theory.
This means cutting off new employees, or a combination of new employees and workers of a certain age — often those under 40. Only people ages 40 and over are covered by federal age-discrimination labor laws, an area of growing concern to employers who are still reeling from age-discrimination lawsuits over so-called cash-balance plans.
So just why are Bush and Co permitting these companies to breach that contract? Same reason they're letting your health insurance go to hell. Corporate profits for the fat cat election contributors and the stock dividends into their personal portfolios. The cash ravers just keep on partying.