Hoffa: Time to protect pensions

Discussion in 'UPS Retirement Topics' started by TheBrownFlush, Dec 9, 2017.

  1. TheBrownFlush

    TheBrownFlush Well-Known Member

    Hoffa: It’s Time to Protect Pensions
    DECEMBER 6, 2017

    By James P. Hoffa
    Published in the Detroit News, Dec. 6, 2017

    Pensions supply a secure retirement for millions of Americans across the country. But increasingly, some plans have faced financial challenges that threaten the nest eggs of many who toiled for decades with the understanding they would be taken care of in their golden years.

    About 200 multi-employer pensions across the country, including the Teamsters’ Central States Pension Fund that oversees the retirements of tens of thousands of Michigan Teamsters in every congressional district, stand on the brink of failure. The Teamsters have been working diligently for years with key members of Congress trying to come up with a solution to this pension crisis. And with the release of new legislation last month, the union believes it has found it.

    The bill would boost financially troubled multi-employer pensions so they don’t fail. It would create a new agency under the U.S. Treasury Department that would sell bonds in the open market to large investors such as financial firms. The dollars raised, in turn, would go to these retirement plans to stave off cuts or complete failure.

    Leaders in Congress are endorsing the plan because it protects workers. “Democrats are offering hardworking Americans across the country a better deal to protect their pensions, because the families of ironworkers, truck drivers, steelworkers and many more deserve a secure and bright future,” Senate Democratic Leader Chuck Schumer (D-N.Y.) said.

    Sen. Sherrod Brown (D-Ohio), a lead sponsor of the measure, called the introduction of the “Butch Lewis Act of 2017,” named after the former Teamsters Local 100 President who died in late 2015 while fighting to prevent cuts to Central States Pension Fund, one of the proudest days of his life. He said workers deserve to receive the pensions they worked so hard for to get.

    “This bill is comprehensive. It includes the miners, the Teamsters and others,” he said. “It makes no cuts. We started with the ideas of no cuts and there will be no cuts. This is a plan that will work.”

    Rep. Richard Neal (D-Mass.), sponsor of the House version of the bill, added, “With this bill, we responsibly shore up multi-employer pension plans and guarantee retirees the full benefits they earned.”

    A new agency, the Pension Rehabilitation Administration (PRA), would lend money from the sale of the bonds to the financially troubled pension plans. Plans that are deemed “critical” and “declining,” as well as recently insolvent but non-terminated plans and those that have suspended benefits would be eligible to apply for the program. For those plans needing additional help, the Pension Benefit Guaranty Corporation would be available to make up the difference.

    Pension plans borrowing from PRA would be required to set aside money in separate safe investments such as annuities or bonds that match the pension payments for retirees. Those applying for loans to the PRA would also have to submit detailed financial projections. The PRA would be charged with approving all loans before they could be issued. Pension plans that have borrowed money would have to submit reports every three years to the PRA to show that the loans are working.

    If failing pension plans are allowed to go belly up, the retirement benefits of some 1.5 million Americans could be at risk. That, in turn, would affect the nation’s coffers. In 2015, for instance, multi-employer pensioners paid more than $35 billion in federal taxes.

    It’s time lawmakers stick up for working Americans who have played by the rules. Passing this bill would be a good start.
  2. It's time to get rid of our current pension system. Obviously it's not working.
  3. Ms.PacMan

    Ms.PacMan Well-Known Member

    Let me guess. The new math they use to make the solvent pensions appear funded will suddenly use the old math to appear underfunded allowing them to borrow from the govt and reduce the pension payouts by 20% for 5 yrs - twice. Theives.
  4. TheBrownFlush

    TheBrownFlush Well-Known Member

    I don't care what math they use . It needs to work till I'm dead .
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  5. Better wake up.
  6. over9five

    over9five Moderator Staff Member

    Unfortunately, it is well past "time to protect pensions".

    Too late now....
  7. That's why I preach to the newbies to get into the 401k
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  8. TheBrownFlush

    TheBrownFlush Well-Known Member

    I'm wide awake.
  9. The pensions aren't. And it keeps getting swept under the rug.
  10. TheBrownFlush

    TheBrownFlush Well-Known Member

    Just because you are preaching , doesn't make it the truth .
  11. Preach to people to be responsible and save for themselves?
    I certainly didn't it enough on Brown Cafe
    And do it even more in real life.
  12. TheBrownFlush

    TheBrownFlush Well-Known Member

    What part of that sermon is missing in a negotiated pension plan ?
  13. Ms.PacMan

    Ms.PacMan Well-Known Member

    This new proposed legislation would make it legal to cut pension payments by 20% for up to 10 years for members in funds that are in critical status. No vote, it would just happen.
  14. UpstateNYUPSer

    UpstateNYUPSer Well-Known Member

    80% is better than the $1,300/month you would get from the PBGC.
  15. TheBrownFlush

    TheBrownFlush Well-Known Member

    I don't see that in this article .
    "This bill is comprehensive. It includes the miners, the Teamsters and others,” he said. “It makes no cuts. We started with the ideas of no cuts and there will be no cuts. This is a plan that will work.”
  16. The pension plan is a failed model. Needs to be scrapped. Just like many government agencies don't offer it to new employees, just a company 401k or403b match.
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  17. TheBrownFlush

    TheBrownFlush Well-Known Member

    If the model has stumbled , change the model . Don't throw the baby out with the bath water .
    I don't care what government agencies offer , they certainly aren't THE model .
    Organized labors standard of benefits must be distinct and unlike all others.
    401k , 401b , 401pdq , invest and save however . But , do not buy what the company is selling simply because the funds are in trouble .
    History proves , if the company wants it , you don't . If the negotiated pension plan is done away with under the guise of " I want to be responsible for my own future " and " Give me the money you are giving the thieving union " , mark it down , the worker will be burnt .
    After you are fooled with " I don't want a pension plan , I can do better myself " , you will soon be buying your own health care also .
    No pension , no health insurance , whats next ? Who knows , but don't be surprised by the flood that will roll in once you open the gate.
    Any union man knows , once you have something negotiated and in a contract , don't ever , ever let it go .
  18. UpstateNYUPSer

    UpstateNYUPSer Well-Known Member

    The company held up their end of the bargain. They want the reforms so that they can avoid throwing good money after bad.
  19. Hey @TheBrownFlush are you :censored2:ing stupid or just an idiot?
  20. TheBrownFlush

    TheBrownFlush Well-Known Member

    Neither . I also show class when I don't agree with someone .