Painting a Grim Picture

The Pension Benefit Guaranty Corporation (PBGC) has issued a report detailing its financial health, and unfortunately, the agency may need life support. According to the release, the average expected deficit for the multiemployer backstop is $90 billion by 2028. Worse, however, is the fact that there is a 90% probability that the agency will be bankrupt by 2025.

If Congress fails to put in place a funding solution quickly, there’s a very high likelihood that benefit guarantees will have to be drastically slashed. As a reminder, multiemployer benefits are only protected at a small percentage of those in the private sector. For instance, a 30-year employee would only receive an annual benefit of $12,870, while the same private sector pension recipient would have there benefit protected to $65,000.

Given the projected insolvency for this agency in a relatively short period of time and you can see why tackling the multiemployer pension crisis is of utmost urgency given that we have 1.4 million American workers in plans that are currently designated as Critical and Declining and another 9 million workers who would no longer have the safety net available to them should their plans ultimately falter.

The House recently passed legislation (H.R. 397) to enact a loan program to provide a lifeline to those plans that are deemed Critical and Declining. Let’s hope that the Senate can support this legislation, too. However, I am afraid that they will seek alternatives to the Butch Lewis Act and in the process, mucking up currently healthy plans, while also subjecting participants to steep cuts. Let’s hope that I am wrong!

2 thoughts on “Painting a Grim Picture

  1. “I am afraid that they will seek alternatives to the Butch Lewis Act” You are kidding correct? You surely did not think they were just going to go along with the Hoffa Act. Now I am sure you will not answer since it is clear you do not post anything that does not promote your agenda.I have already asked you about the hybrid pool created by Nyhan and what negative impact it has had and is having on the Central States fund which you have refused to answer.Seems the PGBC was asking the same questions back in 2017.”Since 2011 the PBGC has received approximately 20 requests for approval of hybrid withdrawal liability arrangements. Notable plans that have had their requests approved include the Central States and New England Teamsters Pension Funds. When the first plans submitted their requests, the PBGC had not been asked to — nor did it — take into consideration the benefits offered existing employers to move to the new pool. Some plans offered considerable deals in terms of discounted assessments, frozen contribution rates, and mass withdrawal relief. In its RFI, the PBGC admits that, had it known of the terms of the settlements offered employers to move to the new pools, that “could have affected PBGC’s analysis of whether the statutory criteria [for adopting an alternative assessment method] had been satisfied.” The PBGC has since begun to analyze proposed withdrawal liability settlement terms to see how that impacts any potential risk of loss and the overall validity of a proposed hybrid arrangement”…
    So you cant hide from it anymore. Your employer James Hoffa, as in the person who paid you,Ryan.the NCCMP rat Blitzstein and others for your work on the Hoffa Act has been mugging for the cameras and giving more BS speeches about his concern for retirees over the last 2 months.Photo sessions with Neal and the NUCPP muppets as well as more speeches to promote the IBT Hoffa Act agenda.
    While sucking face with Richie Neal and telling us how the Hoffa Act BS(HR397 S2254) will save retirees it appears little Jimmy Hoffa has been selling out the Central States Pension Fund. To save UNION jobs and to keep this company paying into the Union Nyhan, the CSPF and Hoffa has been in negotiations since June with Jack Cooper. They have allowed the company to withdraw from the CSPF and the new restructured company to reenter the fund into the secret hybrid fund Nyhan created in 2012 that has resulted in both the CS fund and New England fund going into the toilet.
    For Jack Cooper. They have agreed to write off or negotiate the company’s withdrawal liability to the CSPF. The company will withdraw from the Central States fund and reenter as a new employer in a new hybrid plan or as the bankruptcy filing states
    ““Pension Concession” in the preceding paragraph means the changes to the NMATA and its local supplements permitting New Company to participate in the New Employer Limited Liability Pool of the Central States Pension Fund at the $150 per covered employee per week contribution rate; and in the case of the other Pension Funds, the withdrawal from those funds and
    resulting cost savings achieved by transferring covered employees to 401(k) plans in accordance with the modifications described above”.

    The company’s contributions to the fund will be cut by more than half.
    So Hoffa and his cronies are further destroying the CSPF so they can keep this company UNION and Neal wants the taxpayers to make up the money. The Jack Copper contributions have been worth over $30 million to Central States fund.The filing also says the company will be allowed to pull out of 3 other Teamster Pension funds Locals 710,560 and 557 and they will contribute to a NEW 401k.”Agreements with Other Pension Funds. The New Company will not participate in the Local 557, 560, and 710 Pension Funds. In lieu of pension contributions, the employer will make 401(k) contributions on behalf of each employee covered under the Area Supplements to a fund to be designated by TNATINC in the amount of $150 per week”.
    TNATINC is the Teamsters National Automobile Transporters Industry Negotiating Committee. Under ERISA. They have no legal right to speak for or makes deals for these funds.

    This is not just a bailout of Union funds. This is the taxpayers paying for a UNION organizing campaign. While the IBT is playing lets make a deal with employers to keep them in the IBT and in IBT funds what negative impact has it had on the funds like Central States. The Jack Cooper scam is a glaring example of the IBT selling out the funds and ILLEGALLY controlling funds in their organization and now asking the taxpayers to foot the bill. What a slap in the face to taxpayers. While the IBT, Hoffa and their bought and paid for political hacks like Richard Neal are grandstanding for free taxpayer dollars behind the scenes Hoffa and the IBT are working secretly to further destroy funds they want taxpayer dollars for.Jack Cooper gets off the hook and taxpayers get impaled.All while lying and claiming to be working to help retirees.
    See the Bankruptcy filing and Hoffa Sell out of the CSPF here.
    Still “Refuse” to comment??

    • Good morning, Richard. I think that you should know that I’ve never earned one penny for any work related to the BLA. I don’t have an agenda other than to help retirees get what they were promised. Have a great day.

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