With over $4.3 billion in unfunded liabilities, Teamsters pension hopes to make cuts.
Like other multi-employer (union) pension plans throughout the nation, the New York State Conference of Teamsters Pension & Retirement Fund is suffering from too few unionized employers left to fund the many thousands of union members’ retirement–now and in the future.
As a result, the pension fund is seeking permission from the U.S. Treasury Department to cut the retirement benefits for the nearly 35,000 Teamsters it is responsible for, according to BizJournals.com.
The New York pension fund for teamsters plans to cut benefits for 35,000 members in upstate to keep it solvent.
The board of directors for the New York State Teamsters Conference and Pension Fund approved monthly benefits cuts for retired truck drivers of 31 percent. Members still working will see cuts of 20 percent. The teamsters union represents workers at freight, construction, concrete and other companies, including drivers at UPS and ABF Freight.
If cuts to the New York pension for teamsters are approved, the reduced benefits would go into effect on July 1, 2017. There are 16,000 people currently receiving retirement benefits from the fund.
Whether the Treasury Department approves the cuts remains to be seen. However, if the fund is not allowed to cut the retirement benefits, it faces a very uncertain future given the amount of moneys owed.
The pension fund, according to its 2014 IRS 5500 filings has $1,485,645,498 in current assets, yet $5,830,919,950 in accrued liabilities.
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