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.
December 8 - The American Federation of Labor is Founded
December 7 - Strong Arming Goldminers
December 6 - Breaking Through the Racial Divide
December 5 - Striking in Solidarity
December 4 - Organizing to End Slavery
December 3 - Learning & Labor at Oberlin
December 2 - 21st Century Corporate Greed
December 1 - Standing Up for Themselves and Their Patients
November 30 - Angel of the Stockyards is Born
November 29 - The Fight for $15 & A Union
November 28 - Disaster in the Mines
November 27 - Death Trap in Newark
November 26 - The Birth of William Sylvis
November 25 - Chicago Printers Walk Off the Job
November 24 - The Hollywood Ten
November 23 - The Thibodaux Massacre
November 22 - Uprising of the 20,000
November 21 - Autoworkers Join the Postwar Strike Wave
November 20 - Birth of the Time Clock
November 19 - Joe Hill’s Final Words
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