Pensions may be cut to 'virtually nothing' for 407,000 people

[WhiteTara]

http://money.cnn.com/2016/05/20/retirement/central-states-pension-fund/


The Central States Pension Fund has no new plan to avoid insolvency, fund director Thomas Nyhan said this week. Without government funding, the fund will run out of money in 10 years, he said.

At that time, pension benefits for about 407,000 people could be reduced to "virtually nothing," he told workers and retirees in a letter sent Friday.

In a last-ditch effort, the Central States Pension Plan sought government approval to partially reduce the pensions of 115,000 retirees and the future benefits for 155,000 current workers. The proposed cuts were steep, as much as 60% for some, but it wasn't enough. Earlier this month, the Treasury Department rejected the plan because it found that it would not actually head off insolvency.

snip

A lot of the fund's companies went bankrupt after the trucking industry was deregulated in the 1980s. That's part of the reason the fund is in trouble now. It's currently paying out $3 for every $1 it takes in.

[annabanana]

1. by all means.. cut the livelihood of seniors by 60%

better than closing corporate loopholes and taxing capital gains as if they were earned income

[Hortensis]

12. Before we bleed for ALL of them too much,

which of them voted for decades of tax cuts and screwing over others? I live in a very conservative area and fairly frequently bite my tongue on asking where people stood on thirty years of pro-business/anti-people policies as they complain about getting screwed over.

[Depaysement]

2. CBS MoneyWatch: How the Teamsters pension disappeared more quickly under Wall Street than the mob

http://www.marketwatch.com/story/how-the-teamsters-pension-disappeared-more-quickly-under-wall-street-than-the-mob-2016-04-04

Real estate investments in Las Vegas casinos and hotels once threatened the integrity of a Teamsters pension fund that the federal government wrested away from corrupt trustees and organized crime after five years of legal battles.

A quarter-century later, the professionals who replaced them—Central States Pension Fund administrators; the Goldman Sachs & Co. and Northern Trust Global Advisors fiduciaries; and Department of Labor regulators—stood watch while the financial markets accomplished what the mob had failed to: which was to smash the fund’s long-term solvency with massive money-losing investments.

And some people are complaining about lifting a chair.

[SammyWinstonJack]

3. "And some people are complaining about lifting a chair."

[Ohioblue22]

4. It isn't about a chair it was about the violence and anger from a crowd having a tantrum cause it

Didn't get it's way

[Depaysement]

6. What violence?

Violence is behavior involving physical force intended to hurt, damage, or kill someone or something. That didn't even come close to happening in Nevada.

If you think that's violence, you have led a very sheltered life. You're lucky. I think it's a conveniently fabricated excuse to smear Bernie's supporters to "bring them to heel."

[Ohioblue22]

7. I heard words hurt more than physical violence. So now Men verbally abusing women isn't violence?

[Depaysement]

8. -1

The dictionary is your friend.

What a ridiculous comment.

[Ohioblue22]

10. Of course you believe it is ridiculous. You want to blow it off because it makes Bernie and

his supporters look bad. If this were story of a group of men yelling and trying to shame women going in to planned parenthood you most certainly refer to it as violent

[zeemike]

17. If it was a group of women yelling at a male speaker would that be violence too?

If so I can link you to lots of Youtube videos showing violence committed by women.

But I would guess your definition is selective...and depends on re defining the word violence.

[Ilsa]

20. Public officials vs private citizens.

Apples and oranges in your comparison.

I'm not saying yelling is right or good or appropriate. But you need to come up with a better example.

[Ohioblue22]

26. I do not accept your assertion that they are apples and oranges. People, public or private,

Don't deserve to be treated and threatened like they were

[arcane1]

28. Your instructions forbid it, and since you can't think for yourself, you post what you're told.

Here, have some of this:

[Ohioblue22]

31. Yawn. Run to your safe place where everyone who disagrees with you is dismissed as a troll

You can feel better and go back to sleep

[Ilsa]

38. I understand that. But public

People, especially if they've been in the public eye for decades, tend to develop a thick skin regarding rudeness, poor treatment, insults, etc. Private persons on a sidewalk don't have that advantage.

And I agree that no one deserves threats.

[arcane1]

27. There was no violence, troll. Please try to keep up.

[Ohioblue22]

29. Verbal abuse threats and someone raised a chair as a weapon. if a woman going in to planned

Parenthood got this treatment you wouldn't be surprised be so blase about it. You would call that violence. But it's coming from your side so you down play it

[arcane1]

30. Copy/pasting of Brock's latest lie-filled memo.

How hard are you condemning Clinton supporters for literally beating a woman?

Break those Barriers!

[Ohioblue22]

33. Yawn. Run to your safe place where everyone who disagrees with you is dismissed as a troll

[jwirr]

19. Exactly.

[REP]

5. That's why I took an early buyout on my pension

I retired young due to disability, and had no faith my pension would exist in 27 years, when I would be 65 so I took an early buyout and invested the money (not that I think playing the market is a good alternative to pensions; it was a tiny windfall for me and my long-term holds are doing well - just luck and research).

[Nye Bevan]

9. Wow, I had no idea that the PBGC guarantee is so low for multiemployer funds.

That really sucks.

[tonyt53]

11. As a trustee for about 25 years on multi-employer health and welfare plans, this stuff is scary

Many pension plans have been forced to reduce benefits and at the same time, increase contribution rates. They can thank Bush II for this situation. They are being hit by the same rules as the USPS was hit with, except the USPS was actually hit worse. They had to fund to near 100% of their future obligations through 2075. Other multi-employer plans had to hit 95% for the next ten years. This action has killed many multi-employer plans. The guarantee level was cut at the same time the new rules were put into place. Multi-employer plans also were usually defined benefit plans, not 401's or something like that. The retiree knew what they would get for so many years of service. It is apparent that the new rules were put there for one reason - to force all of that money directly into the stock market were it would be open to ups and down of the market without holding the benefits level for the participants.

[Nye Bevan]

13. The right thing to do is to bail out the PBGC,

and fund it to the extent that those in multiemployer plans are treated the same as those in single employer plans. Probably costly, but if we can bail out Wall Street we should be able to do this.

[Akicita]

42. If taxpayers are required to bailout every pension fund that is in trouble then the taxpayers are in

for a world of hurt. How about if all pension funds are required to bail out the tax payers for our $19T debt instead. That sounds just as fair doesn't it?

[Hortensis]

14. Wow, TonyT. Thanks for your post.

I knew about the USPS, of course, and the milking low of so many pension plans for profits and fees, but I confess whatever I may have read about multiemployer plans didn't hit home, certainly not that they hit them with USPS-type attacks. (Neither of us have pensions, so that topic is always about "others.&quot

No wonder the conservatives are "restless" and anti-establishment fervor is high on both sides. I remember when conservatives just assumed they were on the same team with the 0.01% because they were all joined "together" to save America from our irresponsible and destructive policies. There was no telling them then, of course, and like so many here today most still prefer to lay all their problems at the Democrats' door, instead of their own.

[jtuck004]

15. "A lot of the fund's companies went bankrupt" < No, the problem is that they were allowed to

under-fund those pensions, and this allows people who didn't do the labor to steal the money from those who do.

[magical thyme]

18. yup. When HP bought DEC (via Compaq) 1st thing they did was claim our pension was overfunded

and raid it.

I took a buyout last year the minute they offered it before they could find a way to steal even more. As it was, I think it was about 40% smaller than it would have been. Thanks Carly.

[Bonhomme Richard]

16. Hey this is America and if we do anything right it is....

fuck the average worker. That's just the way it is because we have the most ignorant voters in the world.

[abelenkpe]

21. This is where the federal gov

Should print money and bail out these pensioners. They lived up to their promise and to abandon them in their old age when they can't work is criminal.

[allan01]

22. i remember when debating a friend who was on a fancy pension plan about me being on ssi,

and he advocated cutting ss ssi ssdi and all the other programs . i said , wait untill its ur turn when your bigshot pension goes belly up and he rolled his eyes . and it is your turn. now . i feel the folks who are left holding the bag.

[Mopar151]

23. Teamsters "Central States" was mobbed up big time - 50 years ago!

Big scandal at the time, at least in the trucker magazines passed on from my Uncle. It's beyond bad when poor regulation and greedy bankers are WORSE than the Mob!

[Mopar151]

24. The coal business is ramping up the same scam on retired miners

Peabody Energy is in the forefront, moving pension responsibility to subsidiaries (Patriot Coal, IIRC) which are already sinking, and ready to tank.

[demosincebirth]

25. We can thank Ted Kennedy for pushing the Trucking Deregulation Bill which cost the Teamsters

400,000 well paying teamster jobs. Carter signed the bill.

[Fumesucker]

32. Retirement is for losers

[Omaha Steve]

34. Thanks for posting

K&R!

OS

[WhiteTara]

35. You're welcome!

[underpants]

36. I have to look into this

GREAT!!!!

[WhiteTara]

37. Don't tell me this is going to get you!?!

[frankieallen]

39. this is exactly why i prefer my 401K over a pension.

[roamer65]

40. This is what happens when you pursue long term ZIRP.

Zero interest rate policy, btw.

Imagine what it will be like if we go to negative interest rate policy.

[WhiteTara]

41. That will be a disaster for the savers

that is for sure. For the borrowers, it will be welcome relief. Pretty scary, eh?

[Liberal_in_LA]

43. Feeling bad for the retirees

[WinkyDink]

44. OMG. This kind of event just staggers me. No money for us people, but trillions to "defend" us.

[brooklynite]

45. I have a State pension that has been invested very conservatively (probably below market rates)

The article doesn't suggest WHY the fund is insolvent.