Treasury rejects a plan to cut pensions for Teamsters

Source: Detroit Free Press

The Teamsters Central States Pension Plan – which proposed drastic cuts to pension checks for hundreds of thousands of retired truck drivers in Michigan and elsewhere – has been told by the U.S. Treasury that its plan has been rejected.

"The application failed to meet the requirement to demonstrate that the proposed benefit reductions are reasonably estimated to allow the plan to avoid insolvency," according to a letter from Treasury Secretary Jacob L. Lew.

Treasury said the proposal also did not fulfill requirements that reductions be equitably distributed and that the notices provided to the average plan participant be understandable.

"While we expect that this will come as a relief to these participants, our decision does not resolve the issues threatening their pension benefits," Lew said in a letter to Congressional leaders.

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Read more: http://www.freep.com/story/money/personal-finance/susan-tompor/2016/05/06/teamsters-treasury-decision-central-states-pension/84014252/