Thursday, December 11, 2014

Congress agrees to let some multi-employer pensions plans cut benefits to existing retirees

The bipartisan, lame duck spending bill, designed to avoid government shutdown, will allow financially troubled multi-employer pensions plans to cut pensions, often by as much as one third, even to existing retirees, people receiving benefits.  The Pension Rights Center is obviously very critical of this measure, as in this article.
Michael A. Fletcher has a similar story in the Washington Post, p. A12, Wednesday, here .“Deal reached to allow pension benefit cuts; move, affecting current retirees, is an effort to save distressed plans”.
It would seem that affected pensioners have no recourse.  The PBGC is not part of the process.  
For more people all the time, our system is not working.  

Update:  Dec. 13

Michelle Singletary writes in the Washington Post, "Your pension could go poof.  Do you have a backup plan?"  here. PBGC has a deficit of $19.3 billion even for single-employer plans.  She warns, you're increasingly on your own. 

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