Treasury Issues Too Much to Overcome

When the U.S. Treasury told us in December that our Rescue Plan was going to be denied, we knew there was a good chance that we would not be able to save Local 7's pension fund. That proved to be the case. With the treasury-induced delay in implementing our Rescue Plan and the new numbers the Treasury wanted us to use for predicted future hours and mortality rates, the cuts became so deep they were deemed unnacceptable by the Board of Trustees. The results are that there will be no rescue plan, no pensions will be cut and, in about a decade, the Pension Benefit Guarantee Corporation will have to step in to save the fund. What will that look like? The PBGC cuts today are deeper than our proposed cuts. But, ten years is a long way off and nobody knows what the end result will be of failing pension funds, an underfunded PBGC and calls for a Congressional bailout.

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