They used the PBGC as a conduit

They have 7 billion in assets and need 35 billion relief? That's not just coming up a little short..

I have no clue about the Central Pension fund. However, my wife pays into our state's Public Employees Retirement Association (PERA). She does not pay into Social Security. Caught me by surprise when doing some retirement planning and pulled up her SS account.

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The secret of a long life is you try not to shorten it.
-Nobody

I am fine with that if it includes some strings attached. That is the role of the PBGC. But it sounds like they weren't doing their job of making the pension maintain standards, or their standards weren't good enough. I know that pension rules changed recently so that might have helped to trigger things though. My company has an old pension (no longer a benefit, but they have to keep it around until everyone dies) and the recent rule changes caused a pretty big hit to the books.

I guess I have never really thought about it, but if there is a run on a bank and the FDIC has to step in, are there then consequences for the bank? Or is that just sort of handled by the market as banks are private organizations.

I had the pleasure of trying to wind down a small union trucking company about 20 years ago and negotiating a final payout to Central States for the "underfunded" portion of pension (which we funded weekly for 30 years with exactly what we were told to fund). Pretty much everyone I dealt with from the person at the "help line" number to the person I handed the check over to at Central was an attorney who's sole purpose in life was to seperate you from as much $ as they could.

My boss at the time had colorful stories about contract negotiations with the Teamsters during the 70's and early 80's. Most of which started with him negotiating with a Teamster rep sitting across from him flanked by 2 very large men (standing behind said rep) with pronounced bulges of holsters in their jackets.

I know for teachers it’s complicated and different by state.
https://money.com/...it-wep-cut/?amp=true

https://www.socialsecurityintelligence.com/...and-social-security/

There have been career change teachers who have been very surprised by a small pension benefit making them ineligible for SS. I have thought about a second career teaching but with 23 years in industry my understanding it my SS benefits could be at risk in my state.

With no change in control or ramifications...wanna bet they need a top up again before the projected 2051 date?

She's a public employee

Sounds like you earned your stripes. The Teamsters certainly has a storied past. I hope this doesn't play out that the covid relief pot of gold served as a way too convenient pot of gold bailout for a criminal enterprise messing with well paid into pensions.

My pension will come from Central States and yes I pay SS

Question, if your employer/union provides you with a pension do you not also have to pay into social security as a backstop when your pension is underfunded?//

Here in LA county if you work for the govt. and are going to get a pension, they do not take out SSI. But if you worked your 40 quarters in other jobs that paid in like I did, you are still eligible for it. Only they then cut it by 2/3rds, and what is left over you get. There is legislation on the books now to get rid of that cut, but still in place right now. And doesnt seem fair that I worked all those years outside my job, paid into the system, and now get penalized because of what exactly? It is a contentious law that is most likely going to be rectified, but since it affects so few people, maybe not. I mean it is just simple math like all of SSI is, but then they throw in this little zinger to those that served and worked in govt. jobs.th


This makes me wonder if the law does get changed, it all the folks like me will get retro active benefits going forward. No way they make us whole and pay back money, that's just crazy talk...

that's not how this will play out.

but they will be back again in less than a decade for more in order to "protect workers retirement".

It's in their best interest to keep this severely underfunded. There's no way for a company to get out of the union without dealing with their portion of the "underfunded" liability. Which for most companies is not doable.