Pension payouts to retired Teamsters in New York shall be reduce by roughly 30% beginning subsequent month.
The draconian transfer is a final-ditch effort to maintain the New York State Teamsters Convention Pension and Retirement Fund solvent — and it was taken following a vote amongst its 34,000 members.
The Teamsters fund covers 9 native unions, principally in upstate New York.
The typical reduce for many who retired with 30 years of service might be about $2,000 — taking most retirees to $three,550 from $5,000.
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Cuts may even hit Teamsters who’re nonetheless working, however the quantity gained’t be as excessive.
The vote in favor of the cuts brought about an uproar on social media due to how the ultimate rely is tallied.
Underneath federal regulation, any member who doesn’t vote is counted as a sure.
Defeating the proposal would have required a majority of the 34,000 to return a “no” poll.
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On the remaining rely, 9,788 did vote no — rather more than the four,081 who voted in favor of the cuts.
However 20,767 eligible Teamsters didn’t vote in any respect, and people have been counted as a sure, in response to the U.S. Treasury.
“Wow, let down from the corporate I labored for, the union I trusted and the 20,750 brothers that didn’t need to hassle,” wrote Daniel Keenan on the Fb web page for the Teamsters Alliance for Pension Safety.
The Teamsters fund is simply the third so-referred to as multiemployer pension plan to resort to slashing advantages to stop operating out of cash, based on Reuters.
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No less than one hundred multiemployer plans with 1.three million members are in peril of going broke in 20 years, consulting agency Cheiron Inc. advised Reuters.
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