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Central States going broke---
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<blockquote data-quote="Inthegame" data-source="post: 4721326" data-attributes="member: 37112"><p>As previously stated, the UPS withdrawal payment of 6+ billion dollars put the plan in "green" zone status (+80% funded). But then the 2008 recession happened and it became abundantly clear the CSPF would fail without cuts. </p><p></p><p>In <strong>2010</strong>, the administrators of the CSPF proposed a 10% reduction to save the plan and urged Congress to pass legislation to make that possible as cutting "payouts" wasn't a legal option under ERISA. Unfortunately the quick acting Congress did not address the issue until they finally passed the MPRA act in <strong>Dec 2014 </strong>, which allowed troubled plans to reduce benefits but only with consent from participants, and approval from the Treasury dept.</p><p> </p><p>The CSPF administration then proposed a more drastic Rescue Plan that was rejected by the Treasury dept. as <strong>insufficient </strong>to address the impending bankruptcy. </p><p></p><p>Ironically, retirees who lobbied against that Rescue Plan cheered the rejection as a victory and now face even more drastic cuts.</p></blockquote><p></p>
[QUOTE="Inthegame, post: 4721326, member: 37112"] As previously stated, the UPS withdrawal payment of 6+ billion dollars put the plan in "green" zone status (+80% funded). But then the 2008 recession happened and it became abundantly clear the CSPF would fail without cuts. In [B]2010[/B], the administrators of the CSPF proposed a 10% reduction to save the plan and urged Congress to pass legislation to make that possible as cutting "payouts" wasn't a legal option under ERISA. Unfortunately the quick acting Congress did not address the issue until they finally passed the MPRA act in [B]Dec 2014 [/B], which allowed troubled plans to reduce benefits but only with consent from participants, and approval from the Treasury dept. The CSPF administration then proposed a more drastic Rescue Plan that was rejected by the Treasury dept. as [B]insufficient [/B]to address the impending bankruptcy. Ironically, retirees who lobbied against that Rescue Plan cheered the rejection as a victory and now face even more drastic cuts. [/QUOTE]
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