Teamsters pension trustees to pursue benefit cuts
The Central States Pension Fund, which serves roughly 410,000 participants, is having trouble taking in as much in investments and member contributions as it pays out to retirees. If that situation remains unchanged, the fund’s trustees say the plan will become insolvent within roughly a decade.
The fund will send a preliminary letter to some pensioners this week describing its intentions to reduce benefits. But the size of the cuts and when those cuts will take effect depend on approval of a benefit reduction plan by union members and the U.S. Treasury Department.
Lawrence said the Central States Fund is seeking Treasury Department guidance with an eye toward making a summer proposal detailing the cuts. The cuts, he said, likely will not go into effect until 2016.
Retirees will be represented in the process by Sue Mauren, the retired leader of Teamsters Local 320 in Minneapolis.
Jeff Brooks, a retired truck driver in south Minneapolis, said Minnesota is not as heavily affected as other states, but he said at least 10,000 Minnesota retirees receive checks from the pension that could be affected by the cuts.