May 20, 2024

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Sixty per cent cut in gains floated for Teamsters’ New England pension fund

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The New England Teamsters Pension Fund (NETPF) has floated an maximize in the retirement age from 57 to 64 and a 60 % total slash in rewards. These substantial cuts are becoming proposed as element of revisions to a “rehabilitation plan” which the fiscally troubled fund has participated in due to the fact 2009. By 2018, the NETPF was underfunded by $5.1 billion, the 2nd-greatest deficit of any multiemployer pension approach in the country, behind only the Teamsters’ Central States fund.

A UPS driver taking away a offer to deliver in August, 2020 [Photo: US Department of Agriculture]

The proposal will come significantly less than 6 months in advance of the expiration of the Teamsters’ countrywide deal at UPS on July 31.

In extra to axing all early retirement selections, the cuts would get rid of incapacity pensions ahead of the age of 64 and loss of life rewards. The least retirement age of 57 is currently the highest of all Teamster pension resources. These cuts would consider effect for all future collective bargaining agreements. The rehabilitation strategy applies only to staff hired following January 1, 2009, properly building a two-tier reward composition.

The NETPF is 1 of close to 200 multiemployer pension programs in the United States in fiscal distress. These are the product of, in addition to significant concentrations of corruption and monetary mismanagement by the union bureaucrats who sit in the boards of these plans, many years of declining employer contributions.

This is the end result of the declining dimensions of lively workforces (contributions are typically manufactured by firms on a for each-staff basis) as effectively as the exit of numerous massive employers from these resources. UPS, the largest unionized enterprise in The united states, was permitted by the Teamsters to exit both equally the NETPF as nicely as the Teamster’s Central States fund many years in the past, electing instead to administer its very own pension applications.

The only substitute to the cuts laid out by the NETPF, in accordance to a memorandum introduced by the fund, would be 8 percent compound contribution rate boosts by the businesses. Having said that, this kind of a modest boost would have to be agreed to individually by each business participating in the pension plan, which handles additional than 72,000 workers across numerous bargaining units.