Employers' woes push union pension plans to collapse (non-union pension info too)

[Omaha Steve]

X post in Labor & Socialist-Progressive

http://www.chicagobusiness.com/article/20141206/ISSUE01/312069985/employers-woes-push-union-pension-plans-to-collapse

By PAUL MERRION December 06, 2014

Nearly 230,000 Chicago-area union workers and retirees risk not getting the pensions they've been promised, and some may not get any retirement benefits at all unless Congress comes up with a fix soon.

While lawmakers wrestled with the issue for at least 10 years, $6.26 billion in unfunded retirement obligations was racked up by 30 union-affiliated plans in the city and suburbs that are in financial danger. That doesn't count the Teamsters Central States, Southeast and Southwest Areas pension fund, which alone is $17.55 billion short of what it needs to pay benefits for its nearly 408,000 members nationwide, including 30,000 in Illinois.




It has been a quiet, slow-moving crisis, but Central States could change that. If a solution isn't in place by 2017, the Rosemont-based plan is expected to go belly-up in 10 years or so, experts say.

“I've told politicians many times before, if you really want to know what the 800-pound gorilla in the room is for us, it's our pensions,” says John Bryan, president of Geneva Construction and chairman of the Illinois Road and Transportation Builders Association.

FULL story at link.

[benz380]

1. The company I work for cashed out our pensions

The company had a record year for profits, so they decided with all this extra money they had on hand that now would be a good time to get rid of our pension plans. The millions it cost them to get rid of our pension plans was less than what it was costing them to maintain our plans through the coming years. We were offered a check, transfer to 401K, or enroll in their choice of a trust fund. Those of us who were here the longest suffered the greatest loss. One of the reasons I came to work for this company was the pension I was promised. I feel like this was a breech of contract, but there's nothing I can do.

[Omaha Steve]

2. Welcome to the DU

Your going to like it here!

OS

[blkmusclmachine]

3. Everything seems to be going according to plan...