The other day, when Adam Rubin reported that MLB owners were considering eliminating the pension plan offered to non-uniformed employees like scouts, administrative staff and the like, MLB Vice President Rob Manfred said that there had been “no discussions” about eliminating the pension plans.
MLB executive vice president Rob Manfred acknowledged that candid discussions on the topic have gone on for “several years,” but he disputed that pensions will go away entirely.
“No one is suggesting that pension plans are going to be eliminated,” he said. “What the conversation has been about is allowing individual clubs more flexibility as to what exactly their pension plan is going to look like. Nobody is suggesting there is going to be no plan … for anybody. The issue is in the current arrangement we essentially mandate a particular type of defined benefit pension plan. The question is whether the individual team should have more flexibility to design a program that is effective to them.”
Well, that is a discussion, actually. And, actually, teams were already able to opt out of the plan and institute their own as long as it conformed in certain respects to the existing plan. It’s also worth noting that every company in the history of commerce who cut benefits to employees did so under the guise of “flexibility.” It’s the number on H.R. buzzword for “you guys are now going to be paying more for health insurance” or “you guys are now going to be paying for your own retirement” and the like.
There is a suggestion in the article that MLB may consider keeping things status quo for existing employees and simply not offer pensions to new hires. That would be a way, way better solution than the one Rubin first reported the other day. At least that gives potential hires notice as to what they’re getting into and does not change things for people in midstream.
But a larger lesson here: when Rob Manfred says that something is not so, wait a couple of days and that position may … evolve.