Union Pension Payouts are Getting Cut and Retirees Threaten Militant Action

The Teamsters pension plan (Central States Pension Plan), widely criticized as being extremely underfunded and unable to pay a fraction of its obligations to retirees, is set to be cut in the coming weeks. The Central States Pension Plan last year became the first financially troubled pension fund to seek relief with the federal government…
Read More

Long-Retired Employees See Fully Vested Pensions Drastically Cut by Multiemployer Pension Reform Act

The Multiemployer Pension Reform Act of 2014 (MPRA) was signed by President Obama on December 15th as part of a last-minute deal approved by lawmakers as they were leaving town for Christmas break. The MPRA allows funds to cut benefits for workers and current retirees if the plan is 20% or more underfunded. In other…
Read More

Is Scranton, Pennsylvania the Next Detroit? Public Union Pensions Driving Scranton to Bankruptcy

Scranton, Pennsylvania, home of Vice President Joe Biden, is bracing for bankruptcy because of overly generous union pension plans. According to Stephen Moore of Investor’s Business Daily Online: The city also increased various fees, such as for garbage collection, by two-thirds. It’s becoming a tax hell. These taxpayer costs are skyrocketing, because the city’s auditors…
Read More

Hostess’s Sweet Story Tempting Entenmann’s to Follow Suit

In a standard move, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union refused to grant concessions to save Hostess from bankruptcy liquidation two years ago, fearing it would drive down wages and benefits across the industry. Since then, the Company became non-union, dropped brands beyond snack cakes, shed 18,000 jobs, outsourced delivery, operates…
Read More

Cuts to Pension Plans Part of the 2015 Congressional Budget Bill

For the first time, Congress approved a bill that allows the retiree benefits of distressed union multi-employer pension plans to be cut. A multi-employer pension plan is where a group of employees in the same industry join unions to provide pension coverage to retirees. Of the 1,400 multi-employer plans in the U.S., hundreds either have…
Read More

The Inner-Workings of the PBGC Taking Over Union Pension Plans

Many of my clients are suffocating under the weight of unfunded pension liabilities. They ask me what happens if they sell the company, what happens if they get rid of the union, what happens if they file bankruptcy, etc. While answering each of those questions depends on a myriad of specific facts and legal analysis,…
Read More