[…] for many of the retired and currently employed Teamsters who attended a meeting with U.S. Treasury Department representatives on Wednesday, it wasn’t the first serving of bad news they’ve had through the years. Citing drops in membership and the lingering effects of the 2008 recession, the pension is on track to eventually be insolvent unless changes are made, say union officials.- Unopened ballots are counted as “yes” votes, meaning there’s a strong likelihood the cuts would go through if the Treasury Department allows a vote. UPS workers said their company’s demanding standards and rigorous work schedules are viewed as worthwhile — considering the pension and what had been the 30-year retirement. Treasury officials have accepted the application, which is considered a major step toward approval of a vote. Some of those at Wednesday’s meeting said UPS workers were hurt by the inclusion of other smaller firms in the pension plan, even though many of those companies have come and gone over the years — a feature of the deregulated trucking industry.
Reportedly 9% of Multi-employer pension plans in the United States are in the declining / critical status.
The New York Teamsters Conference Benefit Fund is in this category of distressed plans.
As of February 6, 2017, eleven (11 ) plans have filed with the treasury. See the status of their applications below.
Pension Rights Center, Norman Stein Comments to Treasury
Pension Rights Center, Norman Stein Comments To Treasury (2nd Letter)
James Hoffa, Ken Hall & John Murphy Comments to Treasury
The comment period was originally to conclude by November 14th, 2016. The Department of Treasury has extended comment period to December 21st, 2016.
The NY Plan sponsors took the simple approach and submitted cuts across the board, for all employer groups, irregardless of employer contribution level or previous and future cuts under the Pension Protection Act – rehabilitation plan.
20% Active. (assumed 11% cuts to date)
What about recent retirees who took 11% in the last 5 years, but just retired? They will receive a 42% equivalent cut.
Future UPS employees or those under schedule E who work for an additional 5 years will also receive a 42% equivalent cut.
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