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Thread: Another pension fund in trouble !

  1. #1
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    Default Another pension fund in trouble !

    This fund covers the Detroit area ( southeast Michigan ) Carpenters and Millwights.

    Union pension fund to slash benefits to avoid insolvency
    The pension fund for the Michigan Regional Council of Carpenters and Millwrights has filed a plan with the U.S. Treasury Department to reduce retirement payments for up to 19,600 Southeast Michigan union members and retirees in a bid to stave off insolvency.

    The Detroit Carpenters' Pension Trust Fund reported a funding level of 34.8 percent on May 1, 2018, as actuaries for the employer-sponsored pension plan have projected it will run out of money by 2034 without a reduction in benefits.

    The carpenters' union, whose pension fund has $772 million in assets, is the biggest labor union in Michigan to seek cuts in pension benefits under the Multi-Employer Reform Act. The 2014 federal law requires multi-employer union pension funds to cut benefits if they're projected to be insolvent within 20 years.
    https://www.crainsdetroit.com/financ...oid-insolvency

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    Default Re: Another pension fund in trouble !

    I must be missing something here because those are some wild numbers. The funding level dropped 77% from 120% to 34.8% in only 18 years. But that 34.8% of required funds is enough to last another 15 years. They must be projecting quite a few retirees dying in the next 15 years. And a cut of only 16% will add another 5 years to the fund

    The 2014 federal law requires multi-employer union pension funds to cut benefits if they're projected to be insolvent within 20 years.
    I thought by amending ERISA with the 2014 Act allows, not requires, funds to cut benefits.
    fxstc07 and ABFwife like this.

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    Default Re: Another pension fund in trouble !

    Since I titled this thread, "Another pension fund in trouble" here is one I am somewhat shocked to hear. You might think this wouldn't happen to this fund, but nothing is sacred anymore, even with the church.

    'Why Is There Nothing Left?' Pension Funds Failing At Catholic Hospitals
    For 24 years, Karen Bradley worked as a nurse at St. Clare's Hospital in Schenectady, N.Y. The pay wasn't great, she says, but it was a good hospital, the place where her father once worked as a pharmacist. Bradley thought that if she stayed she'd have a nice pension for retirement.
    Bradley, 56, is one of the hundreds of workers at St. Clare's, which was founded by the Catholic Church, who lost their pensions after its retirement fund collapsed.
    The case highlights a more widespread problem: Because of a loophole, many religious organizations are not covered by a federal guarantee that protects most other workers' pensions, so the workers can get left with nothing.
    But religious organizations, such as Catholic hospitals, can opt out and avoid the expense of paying that insurance and complying with other federal rules aimed at making sure pensions are adequately funded and insured.
    That's what the people managing St. Clare's Hospital did. So there is no guarantee, and many of its workers really are left with nothing.
    https://www.npr.org/2019/10/03/76351...olic-hospitals
    2631 and ABFwife like this.

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    Default Re: Another pension fund in trouble !

    Quote Originally Posted by fxstc07 View Post
    Since I titled this thread, "Another pension fund in trouble" here is one I am somewhat shocked to hear. You might think this wouldn't happen to this fund, but nothing is sacred anymore, even with the church.

    'Why Is There Nothing Left?' Pension Funds Failing At Catholic Hospitals




    https://www.npr.org/2019/10/03/76351...olic-hospitals
    I'm not sure what is going on with Catholic hospitals. We had a few in Albuquerque and they are all gone. Only one left in Santa Fe, and this in a very Catholic state.

 

 

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