NY Teamsters Pension Becomes First To Run Out Of Money As Expert Warns "Pension Tsunami" Is Coming

Image result for pension funds are brokeThe New York Teamsters Road Carriers Local 707 Pension Fund has won the unfortunate award for "First Pension to Officially Run Out of Money."  According to the New York Daily News, and a host of angry former truck drivers who've had their pension benefits slashed, the Pension Benefit Guaranty Corp. (PBGC) has officially been forced to step in and take over payments to retirees of the Local 707, albeit at a much lower rate.

Teamsters Local 707’s pension fund is the first to officially bottom out financially — which happened this month.

“I had a union job for 30 years,” Chmil said. “We had collectively bargained contracts that promised us a pension. I paid into it with every paycheck. Everyone told us, ‘Don’t worry, you have a union job, your pension is guaranteed.’ Well, so much for that.”

“It’s a nightmare, it has just devastated all of our lives. I’ve gone from having $48,000 a year to less than half that,” said Chmil, one of five Local 707 retirees who agreed to share their stories with the Daily News last week.

“I don’t want other people to have to go through this. We need everyone to wake up and do something; that’s why we’re talking,” said Ray Narvaez.

Of course, the Teamsters 707 and other Teamster pension boards attempted to submit plans that would have cut benefits in order to prolong payments to retirees but those plans were universally rejected by the Obama administration...better that the pensions just run out of cash completely.  Per Pensions & Investments:

The Obama administration is in denial about the necessity of cutting pension benefits under the Multiemployer Pension Reform Act of 2014 to try to put distressed multiemployer plans on sounder financial footings and make them more sustainable. It must face reality and order the Treasury Department to stop blocking action.

So far the department, required under the act to approve proposed reductions, has rejected proposals by the Teamsters Central States, Southeast & Southwest Areas Pension Plan and the Road Carriers Local 707 Pension Fund.

Ten plans total have applied for cuts, including the New York State Teamsters Conference Pension and Retirement Fund, Syracuse, whose Aug. 31 application is too new to be listed on the Treasury's website.

The Road Carriers 707 application stated that the plan projects it will become insolvent in February — only about five months away — absent suspension of benefits.

As desperate as the plan's financial situation appears to be, the Treasury denied the application.

And while the Local 707 pension was the first to dry up, it certainly won't be the last...

Also on the brink of drying up are the pensions for two Teamster locals — 641 and 560 — in New Jersey, union officials said. Plus 35,000 Teamster members upstate who are part of the money-hemorrhaging New York State Teamsters Pension Fund.

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I'll get the popcorn ready.

They have known this for years.  THe public is NOT going to save this.

Hmmm?
My united airlines union mechanics pension hasn't been funded for the last 20 years.
Yet they can still purchase and lease 100's of new airplanes and buy other airlines.
But that's not the worst.
The employees purchased the airline back in 94 thru wage concessions.
After screwing the state of Indiana and the city of Indy united shut down the new maintanance base and laid off everyone. First right of refusal for your stocks at what they value it's worth.
So the $100k you paid in wage concessions gave you back less than 5 cents on the dollar.
That's called wallet rape without a thank you.

All be well
Bobby

The teamsters made more per hour than most non-union workers.  They were offered pensions that had no basis in reality when so many in our country have decided to sit on their butts and take unemployment or disability instead of going to work and adding into the work force. Now the chickens are coming home to roost.  Most people on social security cannot draw $48,000 - the highest is around $32,000 per yr. & that's only if you were making well over $100,000 per year. Most are drawing on average around $1,300 per year because they've made no where near what teamsters are making. Most of us have had to put away additional funds to help support a small SS retirement income. The teamster workers should have been doing the same. It sucks that they were told something that turned out not to be true, but most young people paying into SS don't think they'll ever see it in the future either. 

I was a teamster in the trucking industry for over 30 years in NJ !     We did not get paid well at all unless $760 per week going into the 34th year is good pay ....... and the pensions are not that good !  10 years without a raise?      Deregulation, gas shortages .NAFTA....... Our drivers went out on the road and if they had an accident or got a ticket, it was their own personal auto insurance that took the hit.  A traffic ticket was out of their own pockets !    The industry is not an easy life.   I saw more tragedy in those years than some can ever imagine !  Unfortunately, I am in one of the ones drying up !   

" Teamsters Local 707’s pension fund is the first to officially bottom out financially — which happened this month.

“I had a union job for 30 years,” Chmil said. “We had collectively bargained contracts that promised us a pension. I paid into it with every paycheck. Everyone told us, ‘Don’t worry, you have a union job, your pension is guaranteed.’ Well, so much for that.”

“It’s a nightmare, it has just devastated all of our lives. I’ve gone from having $48,000 a year to less than half that,” said Chmil, one of five Local 707 retirees who agreed to share their stories with the Daily News last week. "

Welcome to the Obama-world

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Yikes !!! Ocasio-Cortez: We Need A ‘Multigendered, Multigeographic’ United States

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“We need a United States that really, truly, and authentically is operated, owned, and decided by working – and all – people in the United States of America,” Ocasio-Cortez said to applause.

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“We have to come together, not ignoring our differences but listening to them, prioritizing them, understanding injustice,” she continued.

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