6 Democratic candidates on the multiemployer pension crisis

News December 11, 2019 at 08:56 PM
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A forum hosted by the International Brotherhood of Teamsters in Iowa last weekend gave six Democratic presidential candidates 30 minutes each to address the issues most pressing to the union's 1.4 million members. No issue is as pressing as the imminent insolvency of the Central States Pension Plan, which covers about 385,000 Teamsters, 84% of whom are retirees no longer paying into the pension. The Central States Plan was less than 40%  funded in 2016 and will be insolvent by 2025. At that time, the Pension Benefit Guaranty Corp. will step in to insure a portion of the benefits promised to the Teamsters. But that burden will also sink the PBGC, further reducing the Teamster benefits it will be able to insure. For instance, a Teamster with 20 years of service and contributions to the Central States Plan would be guaranteed a maximum of $8,580 annually. And that's before PBGC goes under, at which time the guarantee will be a fraction of that. "We've got their attention," said James Hoffa, general president of the International Brotherhood of Teamsters, as he introduced the candidates. Retirement security is a top priority for Teamsters, Hoffa said. "If you are going to want Teamster support, you've got to do things," he added, claiming the Democratic Party took union voters for granted in 2016. The slideshows above detail what the six candidates had to say on retirement issues and the multiemployer retirement plan pension crisis that stands to impact the retirement security of 1.4 million workers in 130 plans across the country.