I copied this from a CNN news feed, and although it is a US based article, don't be thinking we retiree's in Canada are removed from this. It will take no time at all for the same ploy to be initiated here. Maybe I should call it a ploy..maybe it is really a truth, that those private pension plans are in danger. I note that the time from to insolvency is 10-15 years. So...they want to to strip pensions by up to 50% now. I cannot imagine what is going through peoples minds in the US. I mean...they are going from hopefully a decent sized pension to not enough, thus forcing them to work on Wal-Marts/McDonalds and other low paying jobs. Likely having to sell their homes and move into a small apartment.
So...what would you do? You are 55+, retired...and all of sudden, you get half of what you had been getting.
Retired truck driver Glenn Nicodemus, 63, (pictured with his wife
Barbara) could see his monthly pension benefits fall from around $3,300 a
month to as little as $1,180.
NEW YORK (CNNMoney)
Hundreds of
thousands of retired union workers are facing pension cuts that could
slash their monthly payments in half — or even more.
The proposed cuts
are
part of a desperate effort to head off insolvency at multiemployer
pension plans, pensions that typically provide benefits for workers at
several companies.
It's an unconventional move: Pension law has long
maintained that cutting the benefits of those already retired is
off-limits. Current law allows troubled multiemployer plans to reduce
the benefits that employees earn going forward, cut early retirement and
disability benefits and
hike employer contributions instead.
But things have gotten so dire that a coalition of employers and labor unions is asking Congress to change the law.
Multiemployer pension plans cover more than 10 million workers and
retirees in the trucking, construction, retail, mining, manufacturing
and other industries. Historically, the plans were considered more
secure since multiple employers pay into the plans instead of relying on
the fortunes of just one company.
But in the past decade, many
plans have struggled with supporting an aging workforce, and large
employers have been pulling out of the plans. In addition, many are
still dealing with significant losses incurred during the recession.
Related: Pensions ask retirees to pay back tens of thousands
The proposal would allow cuts for those plans that are closest to insolvency. According to the
Pension Benefit Guaranty Corporation, which insures pension plans, up to 10% of the
roughly 1,500 multiemployer plans will run out of money in coming decades.
If cuts are allowed, retired truck driver Glenn Nicodemus, 63, could
see his monthly benefits fall from around $3,300 a month to as little as
$1,180. He retired in March after nearly 40 years on the road, and his
only other source of income is $1,700 a month in Social Security
benefits.
"I probably could get a job driving again. I really
don't want to," he said. "These are the years I was looking forward to
being together (with my family) and enjoying what time I do have left.
It takes a lot of that away."
Related: Just how generous are Detroit's pensions?
Nicodemus receives his checks from one of the country's largest multiemployer plans,
the
Central States Southeast and Southwest Area Pension Fund, which is also
one of the most troubled. The fund is projected to become insolvent in
the next 10 to 15 years. If cuts are allowed, the fund's more than
200,000 retirees could see their checks slashed by as much as 60%.
"Without timely intervention, workers in the most deeply troubled plans
are at risk of seeing the benefits they have earned drastically
reduced," Thomas Nyhan, executive director of the Central States pension
fund said at a recent Congressional subcommittee hearing.
The PBGC guarantees a significantly lower benefit level for
participants in multiemployer plans than it offers for single employer
plans, since employers in multiemployer plans pay much lower premiums.
So retirees could ultimately see drastic benefit reductions either way.
If a multiemployer plan goes insolvent, a retiree is guaranteed $12,870
a year at most, which is slightly less than the minimum benefit allowed
under the proposed cuts. In contrast, a retiree in a single-employer
plan is insured for up to $59,320 a year.
Groups like the AARP,
the Pension Rights Center and an increasing number of unions oppose the
proposed cuts. They say that retirees are counting on their pension
benefits, which they were promised through decades of union contracts.
Related: Will your congressman retire richer than you?
They argue that other solutions should be considered, such as allowing
troubled plans to merge with healthier plans and raising the insurance
premiums employers pay the PBGC.
"This is unprecedented," said
Karen Ferguson, director of the Pension Rights Center, a nonprofit
advocacy group. "These retirees in most cases are barely scraping by
with their pension and Social Security benefits. It would be devastating
to them."
Official legislation is likely to be introduced in
Congress in coming months. In the meantime, hundreds of thousands of
retirees are left unsure whether their pension benefits are safe.
"I'm very, very concerned," said 69-year-old Jim Carothers, a Central States' retiree. "I've lost a lot of sleep over it."
First Published: November 15, 2013: 7:06 AM ET
If you are already in trouble, here is a list of food banks in the US.
feedingamerica.org/foodbank
I had posted this on RV.Net www.rv.net as a heads-up for those who might be affected...and I wish I could reach out and smack some folks with a shit-stick...
"Anyone depending on the stock market to provide a retirement is living a loosing dream. Ain't gonna happen. "
"This is 'General RVing Issues'? "
" The main culprit here is ready credit.
I have no sympathy for people who spend all their pay check - no saving up.
Spend all future earnings - easy credit.
Squander their equity - mortgage the house to buy an RV.
15 yrs before retiring we cut up the credit cards, concentrated on paying off all our depts, mortgage, truck, trailer etc.
After 10 yrs of retirement we are not rich but we are dept free."
I posted this on the same website responding to a subject of homeless people living in big box store lots and church parking areas.
I was always of the opinion that people cared about people. I have seen
enough to know that that premise still holds true. However, the
selfishness of people in groups..like in RV.Net is fearful. I
posted a heads-up, about the threat to some private US pensions, and
reading the chest thumping, bragging bs that is now posted for one's
reading pleasure, you have to see that until there is a general stepping
back from greed and "I'm alright Jack"...this is going to get much much
worse. I can now see where the gun question now gets answered. It is
only a matter of time before someone who's back is against the wall,
will hear one more person tell them that it's their own fault for not
saving enough, not having enough, planning enough, getting enough
education, shouldn't have done this or that...and out will come the
weapons. Someone with kids to feed or a medical problem is going to
start that ball rolling and then....
(the question was asked...what could we do?)
Sadly, it's so easy as to be shameful, isn't it. Every
city/town has a fairgrounds or large city owned type area. Open the
place up to those that are homeless. Oh my gosh..yes, it will cost a bit
and yeah, there will be issues to deal with, but pretending this is
going to go away is foolhardy.
And from a logistics point of view? if those in need are all in one place, they can be serviced.
And I too, have been homeless. Can't say I never will be again, either.
My heart aches for people like that. Nowhere to go. Not welcome to be
anywhere. And no..Wal-Mart or Lowes is not responsible for these folks.
We are.
Gary Haupt
