Workers’ pensions in the United States have been declining as companies reduce their support for pension benefits by abandoning traditional defined benefit plans for other forms of pensions.

A recent study shows that the amount of retirement money held by the typical household with people from 47 to 64 years old fell by 11% between 1983 and 1998. The study, by Professor E.N. Wolff of New York University, points out that the decline in working people’s pension savings occurred at the same time that companies were replacing defined benefit pension plans with RRSP style pension schemes.

"This is exactly why the labour movement has been warning people not to buy into employer proposals to switch from classic pension plans to defined contribution plans (RRSPs)," said Alberta Federation of Labour President Les Steel. "American companies have moved in this direction in order to increase profits, and that is why Canadian employers are interested as well."

"The American experience shows that the best thing for working people is to stick with the traditional defined benefit pension plans – and to resist employer efforts to change to different pension schemes," concluded Steel.

The American study also indicates that, while employees pension savings were declining, executive pensions have become even richer. For example, recently retired IBM CEO Louis Gerstner is receiving a pension of $1.1 million per year. As one executive compensation company expert said; "Executive retirement plans and employee retirement plans are really no longer recognizable as related."