Posted on 04/21/2016 8:26:05 AM PDT by pabianice
More than a quarter of a million truckers, retirees and their families could soon see their pension benefits severely cut — even though their pension fund is still years away from running out of money.
Within the next few weeks, the Treasury Department is expected to announce a crucial decision on whether it will approve reductions to one of the country’s largest multi-employer pension plans.
The potential cuts are possible under legislation passed by Congress in 2014 that for the first time allowed financially distressed multi-employer plans to reduce benefits for retirees if it would improve the solvency of the fund. The law weakened federal protections that for more than 40 years shielded one of the last remaining pillars that workers could rely on for financial security in retirement.
For many workers, the promise of a guaranteed income stream for life — a benefit now nearly extinct for younger generations — was at times strong enough to convince them to sacrifice pay raises or other job opportunities. But after decades of challenges that left many pension funds in tough financial straits, some people are learning in retirement that the promises made to them may have to be broken.
(Excerpt) Read more at msn.com ...
Practice for the cut-backs in social security.
This for the Teamster pension fund.
The Hellenization of America. Kalle Hemera!!
sure OK,, but no bonuses, overtime or extra $ compensation at these companies. . .
What a load, if you're talking about recent California public sector retirees.
If you can’t trust the Teamsters with your finances, who can you trust?
Politicians know that cuts to social security could be dangerous to their health.
Where these truckers made their mistake is not belonging to a public employee union, where their benefits can never be cut as the taxpayers are on the hook for their lavish pensions and other benefits.
It's not the companies that administer the funds, it's the unions. It was their choice to do this.
I just read the article. One person is complaining that their pension is going be cut back from $7000 a month to $3000 month if the plan goes through. How many other retirees are receiving $84000 a year?
This is private sector employees, a much lower class than public employees.
“Ava Miller, 64, and her husband, Ed Northrup, 68, could see their combined monthly pension income cut to about $3,000 from the nearly $7,000 they receive now,”
7000/month in retirement!
Must be nice.
Like other retirees at the rally, he said his union often prioritized preserving the pension over other benefits like pay raises. “We always said the money was good enough but we want to have [our pensions],” Wroblewski said. “Now we’re back to fighting again.”
There's part of the problem. Why start pension payments at age 58?
So suppress the earnings of the current workers in order to fund the retirees? That will work until the company is no longer competitive, pay wise, with non-legacy pensioned companies. Then after they lose their help they can close up shop. Then the pension plan can have some further reductions.
Why should current workers pay so that previous workers can have their pensions?
It needs to happen. Here and in State governments and in the Federal government.
It is simply whether it happens via bankruptcy as a crisis or whether it is allowed to happen now.
Damn.
Cutting pensions in half?
Looks like there would be a step system. No more than 10% for a cut and then wait a year and cut again if necessary.
Welcome to the world of most Americans, Teamsters.
I’m 58. Four joint replacements in 4 years! Retired? Nope!
Imagine the Teamsters screwing their rank and file. Who would thunk that could happen?? Hoffa is laughing somewhere at the bottom of the ocean.
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