Teamsters pensioners still looking at pennies on the dollar in retirement
WASHINGTON – Teamsters in Minnesota and across the country may believe they caught a break when the U.S. Treasury Department stopped cuts in their retirement pay. But the Pension Benefit Guaranty Corporation (PBGC) is now saying the government is on track to run out of money to prop up the troubled Teamsters Central States Pension Fund in 2024, roughly the same time the fund itself is expected to go bankrupt.
Without major congressional action, the confluence of those two events could leave Central States pensioners collecting pennies on the dollars they invested in their retirements, Joshua Gotbaum, a former PBGC director, said.
“I’m the son of a labor leader, and a former union member,” said Gotbaum. “I get it. The only people who did not contribute to this are the pensioners themselves … But the fact that it is not fair does not mean they are not going to lose their pensions.”