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Yellow | Does Hoffa want to Destroy the Central States Pension Fund?

BaBaLoo said:
I have been monitoring all of the recent posts and researching articles on the internet. There is a lot of misinformation out there. The new law has some specific guidelines that need to be met. Some of the guidelines have not been put forth by the Dept. of the treasury as of yet. Here are some of the things that I have been able to glean from my research:

1. Central States has applied for benefit modifications. This started the clock ticking. The new law is very specific on a timeline that includes review by the Dept. of the Treasury, voting on any proposal by active and retired members, another review by the feds with the possibility of them overriding the vote outcome. After all of this a plan may be implemented. Central States says the earliest any changes will take place is 2016. That is because each of these steps have a prescribed allotment of days for each step.

2. The Dept. of the Treasury, the IRS, And the Dept. of Labor are still analyzing the new law. They have not published any guidelines as of yet. Central States at this point is waiting for these guidelines. That why they are telling us that they won't know anything until June or July. They probably have a good idea what the regulations will be, but they can not act until they are certain.

3. The new law clearly states that any changes must ensure that the fund will remain viable and meet all obligations for the next 30 years.

4. (my opinion) Drastic across the board cuts will not ensure the viability of the fund for the next 30 years. If they cut fully contributing employers too harshly, they will leave the fund in droves. Other options within the new law will be considered. Plan partitions and mergers will be discussed. This could lead to a mixture of changes that will be applied unequally. Nyhan tried to get a law passed a few years ago that would have partitioned Orphans into PBGC. He also tried to get a law passed that would have allowed 30% across the board cuts. The new law gives him far more leeway. YRCW retirees and active employees should be concerned about their status of being in a rehabilitation plan. Retirement ages could be raised and adjustable benefits could be eliminated. They also will look at surviving spouse benefits.

5. It also is not too late to stop this. But the amount of time we have to do anything is short. That is why it is important to get involved now. Contact your elected representatives. Join one of the many retiree movements that are fighting the new law. Make your voice heard. Once the Federal Govt. puts out the regulations and Central States begins to implement changes, it may be too late. Now is the time to act!
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We all need a generic letter or some form of a letter on what to say to our representatives. That would be an immense help for many here and may just boost people to write or email them.
We need to know what to say without coming and such.
Any help?
 
mysticobra said:
We all need a generic letter or some form of a letter on what to say to our representatives. That would be an immense help for many here and may just boost people to write or email them.
We need to know what to say without coming and such.
Any help?
Click to expand...

I came up with a form letter that can be used. Be sure to type in the name of the representative at the top. Then add your name and contact information at the bottom. You should then be able to cut and paste it into an e-mail or word processor if you prefer regular mail. Here is a link where you can get addresses for your member of congress.

http://www.contactingthecongress.org/


Here is the letter:



To:

The Multi-Employer Pension Reform Act was signed into law in December of 2014. Included in the Omnibus spending bill, the new law never had the opportunity to be heard and debated as a stand-alone bill. This legislation has the potential to affect the lives of millions of hard working men and women. I am requesting your assistance in regards to certain aspects of the law that will have an impact on current or future retirees.

I am a participant of the Central States Pension Fund. This Multi-Employer fund was established by the International Brotherhood of Teamsters during contract negotiations. The fund guaranteed a defined pension benefit once a participant has been vested. A set monthly amount was payable, dependent upon years of service and age of the retiree. Before the new law went into effect, once payment started, these benefits were guaranteed by standing ERISA law. That guaranty no longer exists under the new law that was passed.

Certain conditions of the Central States Pension Fund are unique. The majority of the retired and active participants come from the Trucking and Freight Handling industry. The Motor Carrier Act of 1980 de-regulated the industry. The freight industry went through an upheaval that resulted in the closure of numerous companies that were actively paying into the fund. Over the ensuing years, many of the remaining companies consolidated or merged together. One of the consequences of de-regulation was the narrowing of the pool of active paying companies into the fund. Participants of the fund were allowed to work for more than one employer, with all pension contributions paid into the multi-employer fund. Contributions made on their behalf counted towards the years of service requirement for vestment into the fund. Many participants retired from a company that is no longer in business. However, full contributions were paid into the fund for them reflecting each year of work.

Another concern regards the overall management of the fund. The fund was placed under federal oversight as a result of an investigation into the activities of the International Brotherhood of Teamsters. Financial oversight of the fund was turned over to several Wall Street financial institutions. During this oversight period, the fund balance decreased by several billion dollars. Fund assets were placed into the same types of risky financial instruments that were the root cause of the financial collapse of 2008. Numerous financial institutions received government bailouts. The Central States Pension Fund did not.

The participants of the fund have been notified that changes in current and future benefit payments will be made as a result of the new law that was passed. The director of the fund, Thomas Nyhan, has communicated to fund participants that the fund will run out of money in fifteen years. The director is currently waiting for clarification from the Department of the Treasury on how the new law can be implemented. Fund members have been told to expect cuts to their defined pension benefits that could range as high as 60% of what they currently receive. A target date for these cuts is early 2016.

I am asking you, as my elected representative, to please intervene on my behalf based upon the following points:

  1. The Multi-Employer Pension Reform Act of 2014 was never introduced as a stand-alone bill. It was tacked on to the Omnibus Spending bill during a lame duck session of Congress. It needs full debate in the light of day.
  2. The new law overturns 40 years of standing ERISA law. Once an individual retired, their pension benefit was guaranteed. Premiums were paid into the Pension Benefit Guaranty Corporation. The Federal Government needs to back up the promises that were made.
  3. The Central States Pension Fund, at the current rate of disbursement, is estimated to remain solvent for the next 15 years. The process needs to be slowed down. All possible options should be weighed. An independent internal audit should be required before any action is implemented under the new law.
  4. Congress should investigate fund financial oversight that was managed by Wall Street institutions. Vast amounts of fund assets were lost when placed into high risk speculative investments.
  5. Fund participants need independent oversight to protect their vested interests. Fair and equitable treatment is essential for each vested member, whether actively working or already retired.
  6. The new law will affect currently retired participants the hardest. Financial retirement planning was based upon receiving a defined pension benefit that was guaranteed by law. Many cannot re-enter the workforce to compensate for a loss of benefits. Any changes should have been phased in over a period of time so participants would have been able to adjust.


    I appreciate your assistance in regards to this extremely important matter. The Central States Pension Fund has already started the process to reduce benefits under the new law. My request will require prompt action. The Pension Rights Center and AARP are also looking into this. You should be able to contact them for additional information. Thank you. I need your help.

    Sincerely,
 
Freightmaster1 said:
http://www.tdu.org/news/does-hoffa-want-destroy-central-states-pension-fund


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Say what?
:busted:
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Yes + unions
 
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