Central States Pension Fund Prepares To Slash Hundreds of Thousands of Workers’ Pensions

[marmar]

In These Times) For several months, many current and retired truck drivers have feared receiving a letter in the mail that could be “devastating,” in the words of Teamsters union vice-president John Murphy. Finally, last Friday, the Central States Pension Fund sent those dreaded letters to 407,000 workers and retirees, mainly Teamsters employed by hundreds of trucking-related companies with roots in the Midwest, South and East.

Each individualized letter told them in detail whether the fund will now cut their promised pension payments—and, if so, by how much.

Four decades after Congress first passed legislation protecting workers against such cuts, these reductions in promised benefits derived from workers’ deferred wages have started again, thanks to legislation passed late in 2014 with support from not only many businesses but also some unions and traditionally pro-union members of Congress.

Pro-worker advocates like the Pension Rights Center warn that this move to cut the benefits at the troubled Central States Pension fund could spread to other, more securely financed multi-employer plans as well as even more widespread single-employer, defined-benefit plans. But it could also spur support for legislation introduced in June by Sen. Bernie Sanders (I-VT) and Rep Marcy Kaptur (D-OH) that would save the endangered pensions.

The cuts in monthly payments to workers covered by Central States will vary from nothing (for about one-third of the group) to more than 60 percent (the highest losses will be suffered by many in a group of about 28,400 Teamsters whose employers had abandoned their employees, usually via bankruptcy and closure). The average loss for all participants will be 22.6 percent of retirement pay on which they had counted, according to the summary prepared by the fund trustees. ..............(more)

http://inthesetimes.com/working/entry/18472/central_states_pension_fund_prepares_to_slash_hundreds_of_thousands_of_work

[TheMastersNemesis]

1. I Believe The Teamsters Supported & Endorsed Reagan In 1980 & 1984.

I never could understand why.