"...A pension fund administered by the Teamsters union, with more than 43,000 participants in Michigan, expects to run out of the money it needs to pay its beneficiaries by 2025.
Due to the size of this fund and the benefits it has promised to pay out, some experts project that its insolvency will single-handedly bankrupt the federal body created to insure private pension funds, the Pension Benefit Guarantee Corporation.
The Teamsters fund is among the largest union-sponsored multiemployer retirement plans that are underfunded and in danger of not being able to meet their obligations in the next decade.
This fund, called the Central States Pension Fund, is estimated to have assets sufficient to cover only 33 percent of its promises. It has $36 billion in unfunded liabilities, according to a recent filing with the federal government.
When this and similar multiemployer pension plans fail to meet their pension obligations, the PBGC is supposed to pay a portion of the benefits promised to retired workers.
But the PBGC itself projects that it will no longer have enough money to pay retirees by 2025.
To avoid reduced benefit payments to their members — or seeing no benefit payments at all — labor groups are lobbying Congress for a bailout..."
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1 comment:
Before they ask for money, they need to sell their luxury hotels, golf course, and other luxuries they slushed from the rank and file. After that, they go pound sand.
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