May 6, 2009: In 2008, the Baltimore Local 355 Pension Fund dropped over $100 million—but a new law will let the fund stay in the Green Zone for one more year.
TDU Workshop & Cookout
This Saturday Maryland Teamsters are coming together for an educational workshop on “Building Power to Win Grievances.”
This workshop and cookout is your chance to meet and talk with other Local 355 members who are working to improve the union.
Click here to download a flyer for the event.
The fund’s assets dropped from over $335 million on Dec. 31, 2007 to $229 million on Dec. 31, 2008, a decline of 31.5 percent. In April, actuaries for the Baltimore fund certified that the fund is in critical status—or the Red Zone.
But under the Worker, Retiree, and Employer Recovery Act of 2008, the fund trustees elected to keep the fund in the Green Zone for 2009.
Congress passed the new law in late 2008 to provide temporary relief to pension funds that are struggling to meet the funding requirements of the Pension Protection Act (PPA). The new law lets funds “freeze” their funding status from 2008 for 2009.
Without the new law, the PPA would have required the fund to create a funding improvement plan—that could have meant cuts for early retirement.
The good news for Baltimore Teamsters is that their fund has an extra year to recover from the devastation on Wall Street.
The bad news is that they could face cuts again next year if their fund doesn’t improve.
What do you think? Click here to send your comments or suggestion to Teamsters for a Democratic Union.