by Mike ‘Mish’ Shedlock
In 2014, Congress passed a law allowing distressed multi-employer plans to reduce benefits for retirees if it would improve the solvency of the fund.
The Central States Pension Fund, which handles the retirement benefits for current and former Teamster union truck drivers across various states applied for reductions under that law.
Currently the plan pays out $3.46 in pension benefits for every $1 it receives from employers. That’s a drain of $2 billion annually.
If benefits are not cut, the fund may go broke as soon as 2025.