[Rushtalk] The Gravy Train is Running out of Steam.

Carl Spitzer cwsiv at juno.com
Wed Apr 12 20:18:31 MDT 2017


 

No more bailouts let them fail.
We bailed out New York city long ago we should have let the city fail.
The only reason for the city these days is the stock market the rest is
waste and the UN is worse.

CWSIV







New York Teamsters Pension Fund Goes Belly Up


By F McGuire   |   Thursday, 02 Mar 2017 10:34 AM




The New York Teamsters Road Carriers Local 707 Pension Fund reportedly
has officially run out of 


The money as the federal insurance company has taken over payments to
retirees at a reduced rate.

Sadly, the Pension Benefit Guaranty Corp. (PBGC) itself is also running
out of cash funds to cover union pensions, its director said Wednesday.

The federal agency’s limited liquidity "is part of the spiraling U.S.
pension crisis that threatens to wipe out the retirement savings of more
than a million Americans," the New York Daily News reported.

The New York union’s pension fund, covering 4,000 retired truckers
across the city and Long Island, went belly up just last month, the
Daily News reported.

As it has with 70 other bankrupt union pensions, the PBGC stepped in.
However, under the maximum benefits provided by the PBGC, many former
Teamsters said their monthly retirement checks have been slashed by
two-thirds. 

But the PBGC only has about a decade’s worth of cash in its coffers,
director Tom Reeder warned the Daily News.

“We’re projected to run out of money in eight to 10 years. Many union
pension plans are projected to run out in 20 years,” he
explained. “There are going to be people in plans who run out of money
after we do, and there will be no water in the well.”

PBGC has $2 billion in assets built up over 42 years, Reeder said. Last
year, when PBGC was supporting 65 bankrupt plans, it paid out $113
million a month, agency officials said. Local 707 costs PBGC $1.7
million a month, agency officials said.

The company makes its money through premiums charged to unionized
multi-employer pension funds.

Ironically, Teamsters 707 and other Teamster pension boards attempted to
submit plans that would have cut benefits in order to prolong payments
to retirees but those plans were universally rejected by the Obama
administration, Zero Hedge reported.


"The Obama administration is in denial about the necessity of cutting
pension benefits under the Multiemployer Pension Reform Act of 2014 to
try to put distressed multiemployer plans on sounder financial footings
and make them more sustainable. It must face reality and order the
Treasury Department to stop blocking action," Pensions and Investments
online reported late last year.

The Daily News earlier this week also pointed out that the national
pension nightmare is far from over.


"Also on the brink of drying up are the pensions for two Teamster locals
— 641 and 560 — in New Jersey, union officials said. Plus 35,000
Teamster members upstate who are part of the money-hemorrhaging New York
State Teamsters Pension Fund," the newspaper said.

"Bigger than all of New York’s Teamster locals combined is the Central
States Pension Fund — another looming financial disaster that could
leave 407,000 retirees without pensions across the Midwest and
South. And there’s still more beyond that, in various industries,
officials say." 


 

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----CWSIV----

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