Songremainsthesame
TB Legend
- Credits
- 337
The Central States Pension Fund is underfunded because of Congressional tinkering in late 70's and 80's. . . same kind of tinkering Congress did with the the Post Office pension which has put the Post Office in the Red.
The Central States Pension Fund will shake out just like the UAW fund is now. Once you turn old enough for S.S. your pension will be reduced by the amount you receive in Social Security benefits.
Ex: If you are due $3000/mo under Central States and your S.S. is $1900/mo, your Central States benefit will be reduced by $1900/mo. so your combined pension totals $3000/mo. ($1,100 CS + $1900 SS)
You would have need +$400,000 in a 401k to just to equal the reduced Central States Pension.
So take a deep breath . . . the world is not coming to an end. Not just yet anyway.
If you dwell on this stuff all the time, like a dog with an old bone, you will just make yourself sick. Then it won't matter because you won't be around to collect a pension from either Central States or a 401k.
Why would you be willing to put up with it being reduced? If you were "owed" $3000 a month in pension that's what you should get on top of your social security! That's what's wrong with this whole picture! It's not going to shake itself out! Currently 4 retirees are drawing out while the company is contributing for 1 employee. What's it going to be like when the rest of the teamsters that could retire right now finally hang it up?
It's only going to get worse. How do you fix it? Make companies put in more per employee? Where's that money going to come from? Even if the bonuses the honchos at YRC and ABF have taken were put into health and welfare it wouldn't come close to bridging the gap in central states.