Next Pension Funds Likely to Fail
Last month, thousands of retirees found out that their once untouchable benefit checks could be cut. And more cuts could be coming. Under a new law, about 100 pension plans might be able to reduce benefits, according to the Pension Benefit Guaranty Corporation. Many of the workers covered by these funds are union members who have worked in the mining and trucking industries. They get their pension benefits from cash-strapped funds that are now, for the first time, allowed to make cuts to current retirees’ pension checks. The largest, the Central States Pension Fund, already proposed cuts and is waiting for approval from the Treasury Department to move forward. The second and third largest funds at risk are the United Mine Workers of America 1974 Pension Plan, with 118,000 participants, and the Bakery & Confectionery Union & Industry International Pension Fund, which has 114,000 participants, according to a list from the Center for Retirement Research at Boston College.
David Wingate is an elder law attorney at the Elder Law Office of David Wingate, LLC. The elder law office services clients with powers of attorneys, living wills, Wills, Trusts, Medicaid and asset protection. The Elder