Teamsters see new Congress favoring pension reform


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Teamsters see new Congress favoring pension reform - FreightWaves

The Rehabilitation of Multiemployer Pensions Act, introduced today in the U.S. House of Representatives by Democrat Richard Neal of Massachusetts, was first introduced by Neal in 2017 but did not gain traction. However, with pension reform-friendly Nancy Pelosi leading the Democrat-controlled Congress, the Teamsters are more confident of the bill’s success.

The bill is aimed at helping save more than 300 multi-employer plans across the country in danger of failing, including Central States, which has roughly 400,000 Teamster members. It is estimated to be insolvent by 2025 after years of contributions that were scaled back – or eliminated – by employers such as YRC (NASDAQ: YRCW) and UPS Freight, UPS Inc.’s (NYSE: UPS) less-than-truckload unit.

Central States currently pays out approximately $2.8 billion in pension benefits annually but collects only $700 million in contributions and withdrawal liability payments.