The pension fund for Iron Workers Local 17 in Cleveland is in deep financial trouble. A recent decision by Congress spares the federal Pension Benefit Guarantee Corporation from the burden of covering payments for multi-employer plans. Instead, current members voted to cut the benefits of retirees and the plan sought approval from the federal government to do just that. The answer was yes. The iron workers are the first to be allowed to cut the benefits of retirees. The process is being watched closely as 150 to 200 other struggling multi-employer pension plans covering a million and a half workers and retirees may soon follow.
Steve Koff, Washington Bureau Chief, cleveland.com
Pattie Overstreet, Wife of Local 17 Retiree
Resources:
Pension Rights Center List: Multi-Employer Plans Projected in "Critical and Declining Status'