Thursday, April 11, 2013

Teamsters pension fund: The next bailout?

Occupy Chicago May Day march
What America does not need is another bailout.

From LaborPains:
The Wall Street Journal reports on what might be the next great federal bailout. The Teamsters Union Central States pension fund has been in trouble for some time—UPS pulled out of the fund in 2009—but now it’s advancing towards a point of no return.

It seems the Teamsters Union's Central States pension fund is going bust fast, with companies like Republic Services pulling their employees from the fund. The Journal notes:
Investment losses during the financial crisis and hard times for trucking companies that pay into the Teamsters' Central States Funds have sapped the fund of money it uses to pay promised benefits.

With just 60 cents of assets for every $1 in obligations, the Teamsters pension fund is considered in "critical" status by the Pension Benefit Guaranty Corp., the federal agency that backstops failed pensions.
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1 comment:

Cal Skinner said...

It's better off than ILL-nois state pension funds.