[Rushtalk] The Gravy Train is Running out of Steam.
tom.matiska at att.net
Fri Apr 14 11:25:56 MDT 2017
I've tried to dig deeper into the history of the teamster's pension trouble. Most interesting thing I can find is what I can't find.
Articles on Teamster sites blame the declining ratio of people paying in to those receiving payouts, which is one way to not say Ponzi scheme. They note major employers like UPS opting out of the fund without properly reporting why. Seems like some saw trouble coming while some didn't want to see.
Central States fund is most in trouble, and all those problems go back to Rosemont Illinois. Rosemont is a pimple on Chicago's posterior, but no mention of their political machine is to be found. The legendary diversion of Teamster Central States Funds to Vegas casinos is well reported, but only one vague reference to a third of the loans being in default. Exactly how much does Vegas owe? What better act of political justice than to merge the struggling Central Fund with the Southwest Fund so casino workers can help fellow Teamsters who helped build their city?
Articles blame Wall Street for stealing even more than the mob. The Central Fund lost $11B++ (42%) in the 2008-2009 crash. The bad investments by leadership in "Rosemont" (not Chicago) escapes mention. Goldman Sachs figured heavily in the losses and is vilified...... with no mention of Sachs having enough money to pay Hillary $675K in speaking fees.
Billions of dollars worth of bad decisions with poor retires left holding the bag, and no political hay being made??? Maybe if there was a Republican in the woodpile the details would be more newsworthy? Tom
On Thursday, April 13, 2017 6:38 AM, Steven Laib <slaib at att.net> wrote:
It was a defined benefit plan- guaranteed.
Sent from my iPhone
On Apr 12, 2017, at 9:18 PM, Carl Spitzer <cwsiv at juno.com> wrote:
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.
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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