text: Pension at Teamsters for a Democratic Union
  Posted on Media by Teamsters For A Democratic Union Tdu · December 15, 2014 4:40 AM
  These people were and are the backbone of our nation's economy. They drive trucks, mine coal, haul bricks and bag groceries. Corporations have been weaseling out of guarantees for future retirees for years, but promises to current retirees generally have been sacrosanct.
  The plans that will be affected are know as multiemployer pension plans. They typically involve union workers who are allowed to accrue benefits while changing employers, with each employer contributing to the plan.
  It's those pension plans that the legislation aims to benefit. The Pension Benefit Guaranty Corp., an agency set up 40 years ago to guarantee those pensions, says it may run out of money to pay them in 2018, and is certain to be broke by 2025.
  Because the plans generally benefit union members, they are not popular with congressional Republicans. Union political influence has been waning for years and some of the plans — such as the Central States Teamsters fund — have a history that includes legendary levels of corruption. Even though that was generations ago, it's enough to give cover to grandstanding lawmakers who want to look like they have a legitimate reason to vote against older, middle-class workers.
  Selling out these workers is the wrong message to send to future retirees. The baby boomers now retiring may be the last generation of Americans to leave work assured of adequate income in old age. It's not just the 1 percent who deserve security.
  Posted on Media by Teamsters For A Democratic Union Tdu · December 14, 2014 6:14 AM
  CNN Money Moves
  More than a million retired and current truck drivers, construction workers and other union workers could see their pension benefits cut now that Congress passed a proposal aimed at shoring up some of the nation's biggest pensions.
  Tacked on as an amendment to the government's $1.1 trillion spending bill, the proposal was approved by the Senate late Saturday night.
  While those sponsoring the pension proposal say it is "the only available option" to save failing multiemployer pension plans, other groups -- like the AARP and the Pension Rights Center -- are crying foul.
  Multiemployer pension plans cover more than 10 million workers and retirees in the trucking, manufacturing and other industries. But many of these plans have struggled in the last decade as they grapple with an aging workforce and major investment losses from the recession. Plus, many larger employers have pulled out of the plans.
  That has put a major strain on the Pension Benefit Guaranty Corporation, the government agency that insures pension plans, which last month said its reserves are dangerously low.
  The Congressional proposal would allow plans that are projected to run out of money in the next 10 to 20 years to cut the benefits they pay to both current and future retirees. Benefits would not be cut for disabled pensioners or those 80 years and older, while cuts would be lessened for those between 75 and 80.
  The PBGC projects that more than 10% of the roughly 1,400 multiemployer pension plans, which cover more than 1 million workers and retirees, currently meet this criteria.
  Under current law, cutting the benefits of those who are already retired is off-limits. Instead, troubled multiemployer plans can take other actions, like reducing the benefits employees earn going forward and raising employee and employer contributions to the plan.
  If the Congressional plan passes, cuts would require participant and government approval first, although the largest troubled plans could slash benefits even if retirees vote against it.
  Retired truck driver Glenn Nicodemus, 64, receives his pension checks from the Central States Southeast and Southwest Areas Pension Fund, which is struggling to cover more than 300,000 retirees, widows and others.
  Under the Congressional proposal, Nicodemus could see his annual benefits plummet from around $40,000 a year to as little as $15,000.
  "I am disappointed in the fact that such an important matter is being done is such an underhanded way with little or no discussion of the consequences to millions who will be effected," he said.
  Groups like the AARP, the Pension Rights Center and some worker unions say that retirees like Nicodemus are counting on their pension benefits, which they paid for through decades of contributions, and that other measures should be taken to save plans like Central States.
  But supporters of the legislation counter that allowing for benefit cuts -- along with other changes included in the legislation, like allowing troubled plans to merge with healthier plans and doubling the insurance premiums employers pay the PBGC -- will help preserve the plans for both retirees and current workers.
  That's because if a multiemployer plan goes insolvent, a retiree is guaranteed less than $13,000 a year. In contrast, a retiree in a single employer plan that goes bust is insured for up to $60,000.
  To make matters worse, the PBGC's multiemployer insurance program is itself projected to run out of money in the next decade unless changes are made -- meaning that workers and retirees in failing plans could be left with no benefits at all.
  Posted on News by Teamsters For A Democratic Union Tdu · December 12, 2014 10:03 AM
  UPDATED December 16, 2014: Get answers on the pension cut deal and what it means for you.
  The ink is still drying on the pension cut deal that was attached in the dead of night to Congress's spending bill. Some questions can be answered now. We will update with new information as it becomes available.
  No. This bill permits "deeply troubled" pension plans, those which could become insolvent over the next 15-20 years, to cut already-earned pensions of retirees and active workers. These cuts will be up to the trustees of the pension fund; the trustees are 50% union officials, and 50% management reps. No cuts will go into effect immediately.
  The Central States Fund states that "it is likely that it would take up to a year, before modifications [pension cuts] if any, take effect."
  Most Teamster funds will be unaffected. The Western Conference Fund is in the "green zone." Other large Teamster funds, such as New England, Local 705, Local 710, Local 804, Local 177, Joint Council 83, and most others will be unaffected, even if they are in the "red zone." For example, Local 804 just won significant pension benefit increases in their recent contract.
  While the cuts may only hit some Teamsters now, this attack on workers' pensions could affect all Teamsters eventually – and we are all in this fight for pension justice.
  The Director of the Fund, Thomas Nyhan, was a principal lobbying force for this bill, and has stated that CSPF will impose cuts on retirees and active Teamsters. The Trustees of the fund, who are 50% management and 50% Teamster officials politically aligned with Hoffa, support the bill and support cutting pensions. They will make the decisions – we will demand accountability.
  UPS bought enough influence in Congress to save an estimated $2 billion through a special interest loophole that shifts the company's cost burdens on to Teamster retirees who will face additional pension cuts as a result.
  UPS's special interest loophole means the company won't have to make up for any pension cuts. As a result, all non-UPS retirees will face $2 billion more in pension cuts. Retirees are footing the bill so that UPS doesn't have to pay the obligations it agreed to in the contract.
  It is not known if the "UPS Exemption" also covers UPS Teamsters who retired from Central States before January 1, 2008. These Teamster retirees deserve to know their status and if they may face pension cuts.
  A 'fact sheet' issued by the bills sponsors claims that workers and retirees will get a vote before cuts could be made. But this is no fair vote.
  First, those in Central States can have their vote overruled, because it is a large fund and its failure could seriously impact the Pension Benefit Guaranty Corporation (PBGC).
  To add insult to injury: a majority of all participants – not just voters – would be required for a No result.
  It is our understanding that all participants would get to vote: retirees and working Teamsters. Even if the vote can be overruled – as explained above – it can be a very important tool for us to organize and unite Teamsters and retirees, and we plan to use it.
  Certainly slashing the benefits would improve the bottom line. But in the long run a pension plan needs contributing employers, and here is where the Hoffa administration has failed badly. They severely undermined the Fund by letting UPS pull out 45,000 participants, and they have not organized new companies into the fund. Central States set up a special "hybrid" kind of plan to allow new companies to join the fund with zero withdrawal liability. It was designed for organizing. But it has not been used for new companies. That has to change.
  Will Hoffa and Central States officials have to take cuts?
  Thomas Nyhan, the fund director, is paid $662,060, so he probably isn't worried about any pension cut. Neither is Hoffa: he is in the lucrative Family Protection Plan, which covers only International officials and staff, and pays far more than a working Teamster could dream of collecting.
  Central States has restrictive reemployment rules. Can we get those lifted?
  If pensions as slashed, many Central States and other retirees will need to return to work, and we will demand that Central States revise its reemployment rules for anyone subject to pension cuts.
  Can we file a suit and overturn this?
  This law was passed by the US Congress. It is highly unlikely it would be found to violate the US Constitution, which does not guarantee anyone a pension. But, as reported on the national conference call by the attorneys, we will pursue all legal avenues to curtail damage done to retirees. Our effort will be on-going.
  What's next for fighting back?
  We are moving forward with Campaign for Pension Justice which we invite you to join. We will continue to partner with allies to fight this law and to demand accountability from any Teamster plan that seeks to slash pensions.
  What can we do to get rid of the Hoffa leadership?
  We are starting now to build for a new leadership in 2016. We are fed up with Hoffa's lies, excuses and cover-ups. If you agree, join us to help make it happen.
  The Pension Rights Center's backgrounder on the pension-cut bill.
  Congress, Hoffa Butcher Teamster Pensions
  Posted on News by Teamsters For A Democratic Union Tdu · December 12, 2014 9:26 AM
  December 13, 2014: Congress has officially passed the spending bill that includes pension cut legislation that was attached as an amendment to the budget bill.
  The legislation guts federal pension protections and will pave the way for pension cuts in the Central States Pension Fund.
  Teamsters have questions and deserve answers. TDU lays out what the bill means for Teamsters in our Frequently Asked Questions.
  The biggest question of all may be: how did Hoffa let this happen in the first place?
  While Hoffa was MIA or worse, TDU fought a grassroots campaign to protect Teamster pensions.
  We partnered with the Pension Rights Center and AARP and launched a coalition for pension protections, not cuts.
  We sounded the alarm when a Congressional sneak attack attached the pension cut deal to the end-of-year spending bill. Growing number of unions spoke out in opposition. We even forced the Hoffa administration to make a show of opposition.
  The Hoffa administration was worse than MIA. His allies at the Central States Pension Fund were leading proponents of the pension cut deal. Central States Executive Director
  Thomas Nyhan was a leading proponent of the pension cut deal. He was paid $662,060 by our pension fund last year. How big of a cut will he take?
  Hoffa waited until the day before the legislation passed, Hoffa issued a last-minute letter opposing the pension rip-off. The IBT emailed members calling on them to make phone calls. This wasn't even a matter of too-little-too-late. It was a cover-up.
  Hoffa stayed quiet to signal politicians that he backed the pension cut bill; then when the bill's passage was secured, he put on a show of opposition to the membership to cover himself politically.
  Teamsters expect Congress to play politics. But they deserve more from their own union leadership.
  The Hoffa administration has spent the last year imposing contract concessions, healthcare cuts and pension cuts. It's time for change.
  If you agree, get involved in the movement for change in our union.
  Send us a message and tell us what TDU should do next to fight for our union.
  Join with Teamsters working to defend pensions, and change the leadership of the Teamster Union. Together, we can rebuild the Teamsters!
  Will the Central States Big Shots Take a Cut?
  Posted on News by Teamsters For A Democratic Union Tdu · December 12, 2014 9:10 AM
  December 12, 2014: Thomas Nyhan testified in Congress and lobbied hard – with our pension money and staff – to get the pension-cut bill passed. Now, he got his wish: a 163-page bill sneaked through Congress, tacked onto the budget.
  We propose some small measure of equality of sacrifice, which is a basic principle of the labor movement.
  The executives of the Central States Pension and Welfare Funds should take a 30% cut, to show their sincerity when they talk about the need for sacrifice.
  Let's start with Thomas Nyhan, who was paid $662,060 in 2013 and Al Nelson who was paid $305,811. There are plenty of other fund executives in their bracket: in our review of the 5500 forms for Central States Pension and H&W Funds, we found 13 pulling down over $200,000, and seven over $300,000.
  Urgent: Congress to vote today on pension cuts
  Posted on News by Teamsters For A Democratic Union Tdu · December 11, 2014 9:27 AM
  December 11, 2014: We need your help NOW! The House is poised to vote on the omnibus spending bill, which includes provisions that would allow pension plan trustees to cut the hard-earned pension benefits of current retirees – as a purported solution to shoring up certain financially-troubled multiemployer plans.
  Click here to contact your members of congress and tell them to strip the pension cut ammendment from the omnibus bill.
  Sign up for email updates at www.tdu.org and like us on https://www.facebook.com/teamstersforademocraticunion
  Posted on Media by Teamsters For A Democratic Union Tdu · December 11, 2014 6:12 AM
  It's even worse than its critics anticipated.
  We've tracked this inexcusably hasty, secretive maneuvering during the last week, reporting that it allows extreme, potentially premature cuts in benefits for retirees who are members of multi-employer pension plans. Such plans typically are sponsored jointly by unions and employers in given industries, like trucking. See our posts here and here for more background.
  Posted on Media by Teamsters For A Democratic Union Tdu · December 11, 2014 5:58 AM
  Dave Erickson of Isanti, Minn., believed his pension benefits were guaranteed when he contributed a fixed portion of his pay into the Teamsters Central States Pension Fund.
  On Wednesday, Erickson learned that those benefits might be cut under a provision that Minnesota Rep. John Kline aims to tack onto the new federal budget bill.
  Click here to read more at the Star Tribune.
  Pension Fund Run By Wall Street Cited In Push To Cut Retiree Benefits
  Posted on Media by Teamsters For A Democratic Union Tdu · December 11, 2014 5:56 AM
  Six years after the financial crisis, the economic aftershocks are still rattling the halls of Congress -- this time in a debate over an esoteric pension provision tucked into an end-of-year budget bill. Though that legislation, known as the "cromnibus," is supposed to be about annual appropriations for government agencies, lawmakers have inserted language that would give private pension plans the power to cut benefits to thousands of current retirees whose pension savings were decimated by investment losses from the financial collapse of 2008.
  If the initiative is enacted, experts say, it would be the most consequential change to retirement policy in the United States since the passage of landmark pension legislation 40 years ago. Altering the 1974 Employee Retirement Income Security Act to permit benefit cuts could prompt a slew of efforts to chip away at formerly untouchable guarantees of income to millions of retirees.
  Click here to read more at The International Times.
  Posted on Media by Teamsters For A Democratic Union Tdu · December 10, 2014 7:35 AM
  A bipartisan group of congressional leaders reached a deal Tuesday evening that would for the first time allow the benefits of current retirees to be severely cut, part of an effort to save some of the nation's most distressed pension plans.
  The measure, attached to a massive $1.01 trillion spending bill, would alter 40 years of federal law and could affect millions of workers, many of them part of a shrinking corps of middle-income employees in businesses such as trucking, construction and supermarkets.
  Click here to read more at The Washington Post.
  Put Our Issues on the Table at UPS
  Despite declaring the contract ratified, Denis Taylor says he will "return to the bargaining table to address a number of member concerns with the National Master UPS Agreement." When bargaining resumes, UPSers expect our issues to be addressed.
  UPS Teamsters Looking Ahead
  UPSers are putting their anger to good use. We organized and Voted No to reject contract givebacks. Now Hoffa and Denis Taylor are saying the contracts we rejected are "ratified."