‘Devastating’ proposed pension cuts rock Teamsters in Midlands

[Omaha Steve]

This story mentions Bernie twice. The story is not about Bernie. Hosts I will move it to GD-P by request. It will b x posted in OS Labor & Socialist-progressive.

I ask there be no replies in this post about the mention of Bernie. It is not the reason of this post. Free free to make those replies in OS Labor & Socialist-progressive.

OS

http://www.omaha.com/news/metro/devastating-proposed-pension-cuts-rock-teamsters-in-midlands/article_5f03ab36-1665-5c44-a254-17c1c8ec9370.html

POSTED: SUNDAY, OCTOBER 11, 2015 12:30 AM
By Joseph Morton / World-Herald staff writer

WASHINGTON — Retired truck driver Don Ziemba of Missouri Valley, Iowa, knew the letter was coming, but it still arrived last week like a punch to the gut.

Proposed pension cuts would reduce his monthly payment by more than half, from $2,800 to $1,281.

“It was very devastating,” said Ziemba, 69. “I was glad I was sitting down when it happened. It was a real shock to see that it came to this point.”

Retirees across the country received similar letters last week detailing just how much they stand to lose under cuts proposed by the Teamsters’ Central States Pension Fund.

FULL story at link.

[elleng]

1. Bad news. SOME tried to help.

'Sen. Rob Portman, R-Ohio, introduced legislation last week that would change the voting procedures to make it easier for retirees to block implementation of the cuts.
Nyhan questioned the advisability of having retirees trying to digest a complicated 2,000-page plan and then voting on it. He also questioned the idea of retirees voting down the cuts in hopes of a better deal.
“You can’t negotiate around the math,” he said. “There has to be a reduction in benefits.”
Packett and others have been critical of those in charge of Central States, suggesting that its financial woes stem from mismanagement by overpaid executives.
Nyhan said the fund has been under a consent decree with the U.S. government for 35 years that dictates all assets of the plan are overseen by independent asset managers cleared by the Department of Labor and employed by the court — managers that have included Goldman Sachs and Northern Trust.
Packett pointed out that some of the managers of the pension fund received their own bailouts from the federal government.
“If they can’t manage their own money, what makes anybody think they’re going to manage pension money?” she asked.
Nyhan said that the fund has produced returns that compare favorably with trusts of similar size over the years and that the real crux of the issue is that there is simply no way to make up for the fund’s $2 billion annual gap between contributions and payouts.''

[Fla_Democrat]

2. “You can’t negotiate around the math,”

It sucks, no doubt.

Nyhan said that the fund has produced returns that compare favorably with trusts of similar size over the years and that the real crux of the issue is that there is simply no way to make up for the fund’s $2 billion annual gap between contributions and payouts.

The pension would have to net 11-12% a year just to break even?



“Look, nobody likes this,” he said. “Don’t think for a minute that our trustees had some kind of secret agenda or took pleasure in doing this. This was very difficult, complicated and gut-wrenching. We don’t want to do this. We don’t see an alternative.”

[Kang Colby]

3. This is why I always get confused

when I hear people pine for the good ole days of pensions.

[A HERETIC I AM]

4. That's because many think that a pension fund just magically poops out money...

in some wistful, non risky, non investment, government bond safe way that takes a 10% of salary contribution over 25 years and makes that an 80% payout for 30 years.

yeah....it's nonsense.

[GummyBearz]

5. Couldn't put it any better

+1

[Fumesucker]

6. In related news: Teamster officials vote to cut their salaries in half...