About 273,000 union workers and retirees are about to learn the fate of their pensions.
The struggling Central States Pension Fund is in such bad shape that it's seeking government approval to cut benefits -- and the ruling is expected to come this week.
It would be the first time the government green-lights pension cuts under a new law giving the Treasury Department authority to approve, or reject, cuts proposed by a multi-employer, private fund as a way to head off insolvency.
Previously, failing pension funds could reduce future benefits for current workers, but they couldn't touch those already being paid to current retirees -- until now.
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9 comments:
These unions spend a ton of money on salaries and perks for the union bigwigs, and millions on political activities, but they under-fund the pensions.
You union people let them get away with it, then suddenly the bottom falls out from under you.
Don't expect the taxpayers to bail you out.
This is the short comings of a defined benefit pension. Eliminate all pensions and institute 401K plans with both employer and employee contributions.
I find it strange that the article does not mention the Central States Pension Fund was created, and is owned, by the Teamsters Union. This fund has been widely known as a slush fund for Teamsters officials to pay bribes, make political donations, enrich union bosses. The fund was started by Jimmy Hoffa and you know what happened to him.
Dominoes are falling....
This is exactly what they deserve for not having the common sense to know it was too good to be true.
Expect the taxpayers to bail you out
Drawing over $3000 a month on a pension? I am surviving on $1600 a month, that is my pension. I worked 25 years in Detroit as a cop!
I elected to go non union in 1972.
Glad I did!
3:14 IRAs have been available since the early 1980's. Started under Reagan, where was your personal responsibility?
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