On this day in Labor History the year was 1974.
That was the day that President Gerald Ford signed the Employee Retirement Income Security Act.
The act was passed over growing concern about the mismanagement of private pension plans.
In 1963, the Studebaker Corporation closed its auto plant.
Its pension plan was in shambles nearly seven thousand workers received only fifteen percent of their pension or nothing at all.
Across the country more and more workers were relying on private pensions.
In 1960 21.2 million workers had private pensions.
By 1970 the number stood at thirty million.
The funds in those pensions had nearly tripled in that same decade to $138 billion.
Ensuring the security of those pensions was essential for millions of workers and the stability of the economy.
At the bill signing, President Ford explained, “Dramatic growth in recent years has thrust private pension plans into a central role in determining how older Americans live in their retirement years. Yet, this same growth in pension plans has brought with it a host of new problems. Many workers have ultimately lost their benefits - even after relatively long service - because when they left jobs, they thereby gave up rights to hard-earned pension benefits. Others have sustained hardships because their companies folded with insufficient funds in the pension plan to pay promised pensions. In addition, some pension funds have been invested primarily for the benefit of the companies or plan administrators, not for the workers. It is essential to bring some order and humanity into this welter of different and sometimes inequitable retirement plans within private industry.”
President Ford signed the bill on Labor Day, and outlined minimum standards for private pensions.
June 1 - Standing Up by Sitting Down
May 31 - The 1921 Tulsa Race Riot
May 30 - The Memorial Day Massacre
May 29 - The Little Steel Strike Revs Up
May 28 - The 54th Massachusetts
May 27 - Rubber Workers Push Back Against War Profiteering
May 26 - SWOC Strikes Little Steel
May 25 - Striking Teamsters Triumph
May 24 - Operation Humanity Marching for Dignity
May 23 - The Battle of Toledo
May 22 - The Battle of Deputies’ Run
May 21 - Striking to Save Their Union
May 20 - Relief Workers Sit Down in Vancouver
May 19 - Explosion on the Jersey Docks
May 18 - The TVA Transforms the South
May 17 - Striking for Dignity and Respect
May 16 - Minneapolis Teamsters Lead the Way
May 15 - The Winnipeg General Strike Begins
May 14 - Wobblies On the Waterfront
May 13 - Women Strike Tolteca Foods
Create your
podcast in
minutes
It is Free
Navigating Life After 40
Teaching Learning Leading K-12
Regenerative Skills
The Jordan B. Peterson Podcast
The Mel Robbins Podcast