President Joe Biden’s administration on Dec. 8 announced the infusion of nearly $36 billion to shore up a financially troubled union pension plan, preventing severe cuts to the retirement incomes of about 350,000 Teamsters workers and retirees across the United States.
A pair of reports on the health of the multiemployer pension system are shedding light on healthy plans and how a proposal to bail out those in grave danger of collapsing would financially hit taxpayers.
About 114 multiemployer pensions covering more than 1 million workers are due to run out of money within the next two decades, but the overall state of the system is healthy, according to reports from two actuarial consulting firms.
The Pension Benefit Guaranty Corp.’s multiemployer pension insurance program will run out of money by the end of 2025, according to a new report from the government agency in charge of taking over troubled plans such as the Central States Pension Fund.August 11, 2017
Secretary Steven Mnuchin met last week with 25 Teamsters retirees from groups in 15 states. They included Tom Schwarzenberger, who said the focus on possible solutions to the pension’s funding shortfall marked something of a milestone.
A group of 25 Teamsters pensioners will meet July 11 in Washington with U.S. Treasury Secretary Steven Mnuchin about failing pension plans.
The Central States Pension Fund has decided not to submit a new rescue plan to avert future insolvency, leaving the question of funding future pensions for its Teamster members in the lap of Congress.
The 225,000 people facing possible cuts in their retirement benefits are the most numerous and visible victims of the Central States Pension Fund troubles. But the fund's deep financial woes also have left hundreds of companies with large potential liabilities, essentially because they have survived where others failed.