Teamsters’ pensions in Western Pennsylvania are going to be cut. The question is, by how much?
Current and future retirees of the International Brotherhood of Teamsters in Western Pennsylvania—many who work (and worked) for companies like UPS and Giant Eagle—are going to have their pensions cut.
While pension trustees do not yet know the amount, the reason is pretty clear, according to the Pittsburgh Post-Gazette:
The Western Pennsylvania Teamsters fund — which has about 48 cents for every $1 in benefits it owes to retirees and workers — notified participants in April that it is considering cutting benefits in order to insure that the fund doesn’t become insolvent. The plan is expected to pay out nearly $129 million in benefits this year but will collect only about $54 million in contributions.
If the current level of benefits is maintained, the fund is projected to run out of money in 2028. [Emphasis added.]
Read more here.