Treasury Rejects Plan to Cut Pension Benefits for Some Retirees
The Treasury Department rejected a plan Friday that would have substantially cut pension benefits for nearly 300,000 former and current truckers and their family members. The proposal from the Central States Pension Fund, one of the largest multi-employer plans in the country, was the first test of a 2014 law that allowed financially distressed multi-employer plans to shrink benefits for retirees even if the fund had not yet run out of money. The rejection buys more time for the retirees, who would have seen their pension payments severely cut. But with the fund still on pace to become insolvent within 10 years, workers and retirees are still at risk of facing major cuts. And retirees in other plans that have applied to the Treasury for reductions could still see their benefits reduced if their proposals are approved.
Source/more: Washington Post
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 Law office has locations in Frederick and Montgomery Counties, Maryland.