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Judges in Colorado and Minnesota have dismissed court challenges by retired public workers whose pensions had been cut — developments that may embolden other states and cities to use pension reductions as a tool to help balance their budgets.

DealBook »   Jackson Proposes Creation of a New Lender  |  At a three-day conference, the Rev. Jesse Jackson discussed a proposal to use pension money to make loans in low-income communities.

Mr. Rohatyn ultimately persuaded city labor leaders -- Victor Gotbaum, Barry Feinstein and Albert Shanker -- to accept a municipal wage freeze and layoffs and to use pension funds to buy more than $2 billion in municipal bonds.

Finally, insiders say SEIU hopes to enlist unions in other countries to mount protests and possibly use pension funds to pressure fast-food chains with global operations, which is they it's focusing on corporations with extensive overseas operations.

In one hearing today, Senator Kent Conrad, the North Dakota Democrat who is chairman of the Senate Budget Committee, told Mitchell E. Daniels Jr., the president's budget director, that if he had put forward such a plan to use pension money for other purposes in the private sector "you'd be headed for a federal correctional authority".

Pollyanna Pensions Free Registration Required May 27 , 2002Beware of companies who use pension plans to pump up profits.

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If you are planning to use pensions drawdown (meaning your money will be invested for a longer period) you can afford to take more investment risk and so maintain a larger weighting in equities for longer.

The challenge here is ensuring this does not affect an organisation's ability to attract talent: charities frequently use pensions to compensate staff for lower than average salaries, for example.

SRES and CSHP designees are educated and knowledgeable in such areas as downsizing, aging-in-place, senior housing options, reverse mortgages, as well as ways to use pensions, 401k accounts and IRAs in real estate transactions.

Using pension money would simultaneously achieve another of Mr. Jackson's goals: encouraging pensions to focus on socially responsible investments.

"Using pension fund capital to try and prop up stock prices runs the very real risk of turning a stock market bubble into a pensions crisis," he said.

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