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  #101  
Old 05-23-2015, 09:10 AM
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TEAMSTERS

Quote:
Teamsters Mount Grassroots Campaign to Block Pension Cuts

Teamsters are up in arms over looming pension cuts that could slash the incomes of both current and future retirees—anyone under 80.

They’re battling trustees of the enormous Central States Pension Fund, which has said that cuts of up to 30 percent may be necessary, as soon as possible, to keep from running out of money. Those trustees represent both management and their international union.

At the same time, worker and retiree activists are also battling corporations bent on eliminating pensions altogether. The latest political blow came in December when Congress passed a bill, in the middle of the night, to allow cuts to certain already-earned pensions.

etc ...
http://www.labornotes.org/2015/04/te...k-pension-cuts
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  #102  
Old 06-05-2015, 08:24 AM
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And north of the border

http://www.theglobeandmail.com/globe...ticle24814598/

Quote:
A pension is supposed to provide a stable foundation for a long retirement. But, in some cases, that foundation can be shakier than people realize.

The Canadian Commercial Workers Industry Pension Plan has just provided a disturbing reminder of the shocks that are possible.

CCWIPP announced last month that the roughly 24,000 people who are collecting benefits from the plan will have their pensions cut by 10 per cent beginning in July, while those who are still working and contributing to the plan will suffer a 20-per-cent reduction in the pension benefits credited to them.

etc ...
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  #103  
Old 06-05-2015, 08:49 AM
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Quote:
Originally Posted by Abnormal View Post
.

Quote:
The CCWIPP had suffered one black eye in the past, although of a relatively minor nature. In 2009, the Ontario Court of Justice found nine of the planís trustees guilty of failing to supervise the planís investment committee, which made investments in Caribbean hotels and resorts that were larger than permitted by regulation in 2002 and 2003. Although there was no proof the fund suffered any financial loss as a result, the trustees were each fined $18,000.

By themselves, the planís investment returns didnít appear to be a cause for great concern: They averaged a respectable 7.8 per cent from 1979 to 2013, and 8 per cent over the most recent five years of that span.

However, those results werenít sufficient to keep up with the planís goals. At the end of 2012, the planís annual report stated it was only 67-per-cent funded on a going-concern basis Ė in other words, assuming the plan were to continue indefinitely Ė and only 31-per-cent funded if the plan were to be wound up immediately.
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  #104  
Old 06-17-2015, 09:21 PM
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http://www.actuarialoutpost.com/actu...03&postcount=1

http://www.actuarialoutpost.com/actu...41&postcount=2
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  #105  
Old 06-17-2015, 09:23 PM
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from those two posts
http://www.nytimes.com/2015/06/18/bu...l?ref=business

oh wait i already posted the Washington Times story. Jeez.
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  #106  
Old 06-18-2015, 04:07 PM
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Academy Alert
https://cv.actuary.org/members/alert...2015-PEB-7.pdf

Following the links in the alert:
Proposed rule (unpublished) on suspension of benefits under MEP Reform Act of 2014: https://www.federalregister.gov/arti...rm-act-of-2014

Sorry, this is the rule: https://s3.amazonaws.com/public-insp...2015-14945.pdf

Interesting the Federal Register is using amazon cloud services. It will be officially published in the Register tomorrow.

Application procedures for approval of benefit suspensions:
http://www.irs.gov/pub/irs-drop/rp-15-34.pdf

Partitions of MEPs -- interim final () rule
https://www.federalregister.gov/arti...employer-plans
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  #107  
Old 06-18-2015, 04:10 PM
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CENTRAL STATES

https://burypensions.wordpress.com/2...plan-collapse/

Quote:
Two Lessons From the Central States Pension Plan Collapse

1. The government will not protect your pension
2. Actuaries for these plans are not independent

....
Checking out the 5500 filing for 2013* for the plan confirms that dire situation and leads to two obvious questions:

1. What will happen to the participants?
2. Could this not have been anticipated?

The real answers which are unlikely to ever appear on any rescue website:

1. Some government official will eventually decide how much participants get of whatever money remains and yesterday the Central States participants got a name: Kenneth Feinberg

2. Too often actuaries are not paid to predict for accuracy but for convenience. Most actuaries living in the real world can see baby boomers retiring and union participation declining but including those factors in liability calculations would not serve the interests of those who have to pay benefits or hire actuaries.
.

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  #108  
Old 06-18-2015, 06:59 PM
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http://www.benefitspro.com/2015/06/1...-pe?page_all=1

Quote:
If Treasury approves reductions to previously protected benefits, plan trustees will be able to reduce participants’ benefits to 110 percent of the benefits guaranteed by the Pension Benefit Guaranty Corp.

PBGC guarantees limited benefits to participants in the multiemployer plans it insures. The highest guaranty is about $13,000 annually.

That means under Kline-Miller, if a participant’s PBGC-guaranteed benefit is $1,000 a month, plan trustees would not be able to reduce benefits below $1,100 per month. Retirees 80 and older and participants on disability would be exempted from the cuts.

Union-member participants will have the chance to vote down benefit reductions. But, if they do not agree to the reductions, Treasury can override their vote if the plans are deemed systemically important, meaning they would require more than $1 billion in PBGC assistance were the plans to become insolvent.

According to the latest projections from the PBGC, about 1 million of the 10 million participants in multiemployer pensions insured by the agency are in plans that are on a path to insolvency.

Last year’s annual report showed PBGC’s multiemployer insurance program holding about $2 billion in assets, against $40 billion in projected liabilities.

PBGC also issued an interim final regulation in accord with the Kline-Miller Act.

After plans have reduced benefits, they may be eligible for further assistance from PBGC.

The new law grants PBGC the authority to partition a portion of a plan’s liabilities into a new plan, which would be funded by the PBGC, but only after the benefit reductions have been approved and enacted.

The amount partitioned is limited to the amount needed to keep the plan from going insolvent, according to a PBGC representative, who was part of the press call with Treasury.

In effect, PBGC would be taking responsibility for some plans’ liabilities, but only if doing so proves less costly to the PBGC than if the plans were to go insolvent.

Also, in order for liabilities to be partitioned, PBGC would have to determine that doing so would not impair its ability to insure other plans, according to the PBGC rep.

The PBGC representative emphasized partitions will be limited by the massive debt in the agency’s multiemployer program. He estimated that about $60 million worth of partitions would be available and that about six plans will seek partition in the first years of the new program.
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  #109  
Old 06-21-2015, 02:31 PM
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CENTRAL STATES

http://www.pionline.com/article/2015...d-pension-plan

Quote:
Teamsters Central States, Southeast & Southwest Areas Pension Plan, Rosemont, Ill., acknowledged “clearly the math will never work” on funding its defined benefit plan, said a new website it created to provide details of a “rescue plan” it is developing.


The pension fund had assets of $17.8 billion as of Dec. 31, down from the $18.7 billion a year earlier, said David H. Coar, Central States independent special counsel, in a report to Judge Milton I. Shadur of U.S. District Court in Chicago, who monitors the fund.

The pension fund is projected to become insolvent in 2026, making it “unable to pay any benefits to current and future retirees,” the website said.

“However, even record investment returns in the short term will not be nearly enough to resolve the fund's imbalance,” said the rescue website.

The pension fund's investments returned 6.86% for calendar year 2014, underperforming the 7.33% median return of its benchmark of the Wilshire Trust Universe Comparison Service, Mr. Coar wrote in the report. Wilshire Associates produces the TUCS benchmarks.

For each of the three- five- and 10-year periods ending Dec 31, the fund's investment returns exceeded the universe's respective median return, Central States said in a statement Thursday.
....
“For every $3.46 that the fund pays out in pension benefits, only $1 is collected from contributing employers, which results in an annual $2 billion shortfall,” the website said. “That math simply doesn't work.”

Central States this summer expects to disclose details of the rescue plan that might cut benefits for both active and retires, the website said.


website here:
http://www.cspensionrescue.com/
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  #110  
Old 06-21-2015, 02:35 PM
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TEAMSTERS
Western Pennsylvania Teamsters & Employers Pension Fund

http://www.post-gazette.com/business...s/201506210099

Quote:
Tucked into the last-minute budget compromise signed by President Barack Obama in December, the pension legislation is of most interest to about 1.5 million workers and retirees covered by multiemployer pension plans that could run out of money in the next 15 or 20 years.

The Western Pennsylvania Teamsters & Employers Pension Fund, which covers about 23,500 current and future retirees, could be one of those plans, according to Boston College’s Center for Retirement Research.

While managers of the troubled plans are taking steps to shore up their finances, if those measures fall short, the new law allows them to seek U.S. Treasury Department approval to temporarily or permanently cut benefits for those younger than 75. Benefits would not be reduced for those 80 or older and those receiving disability benefits. Those between 75 and 80 would see smaller cuts.

Critics of the measure say it overturns 1974 legislation that protected pension benefits.

“The consequences could be devastating,” said Karen Ferguson, director of the Pension Rights Center in Washington, D.C. She said retirees could see benefits cut by up to 60 percent.

....
Some members of Congress are proposing legislation to overturn the benefit cut provision of the law.

Last week, Sen. Bernie Sanders, I-Vt., and Rep. Marcy Kaptur, D-Ohio, introduced legislation that would create a separate PBGC fund to restore full benefits to participants in multiemployer plans. It would be financed by closing loopholes that allow the wealthy to defer taxes on certain types of exchanges and that allow wealthy families to reduce estate and gift taxes. Those provisions are estimated to generate $29 billion over 10 years.

“If we do not repeal this disastrous law, retirees all over this country could see their pensions cut by 30 percent or more,” Mr. Sanders warned.

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