UPDATED: Too Big to Fail: The Huge Community Impact of Pension Cuts

The huge economic impact that the proposed cuts by the Central States would have on American communities is now detailed for all 435 Congressional Districts.

too_big_to_fail_thumb.jpg

This information proves that not only would the disastrous cuts put tens of thousands of retirees into poverty, but would have a serious adverse effect on the economy of hundreds of communities.

Here is a state-by-state chart of the impact.

For example, the Fund pays benefits in the state of Michigan of over $327 million per year, so cutting the benefits by 50 % would sap the state economy of over $163 million in consumer spending, with a ripple effect on many businesses and jobs.

For the retirees and for the many affected communities and states, the Central States Fund is indeed “too big to fail.”

“If a corporation with a payroll of that scale threatened to leave the state, we’d see politicians lining up to offer them tax breaks and corporate-welfare to stay,” stated Paul E. Kubal, Detroit Local 299 carhauler. “Hard working Teamsters who earned their pensions deserve that consideration and more, to keep their dignity in retirement and their money in the economy.”

You can click here and then click on any state to find the local impact detailed for each district in the state.

This information should be spread to all media and especially to all elected political leaders. Not only your Congressional Rep and Senator, but your state and local legislators should see the potential economic loss to your district if these cuts are made.

We thank those political leaders in Washington who demanded that the Central States Fund finally release the numbers, and the Pension Right Center for their help. 


Showing 11 reactions

  • followed this page 2016-10-19 11:48:10 -0400
  • followed this page 2016-02-25 14:40:54 -0500
  • followed this page 2016-02-25 13:09:41 -0500
  • followed this page 2016-02-25 11:47:09 -0500
  • commented 2016-02-24 12:26:47 -0500
    When are you retirees going to start looking at the big picture? This is not just about YOU!! You also need to think about the actives who are still working and throwing money into this bomb fire! We are all in this together actives and retirees so lets fight this together!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
  • commented 2016-02-24 05:19:47 -0500
    The US Gov paid $314,000,000 in 2014 for gitmo bay to house 91 inmates, just imagine if they spent that kinda money on hard working Americans about to get robbed of their pensions. DonT forget about the $100BILLION a month outa thin air to the banks for qe!!!
  • commented 2016-02-23 19:45:41 -0500
    I guess that the author of this article assumes that 100% of the pension money is spent. And if the cuts are 50% then they will still spend all of it.
  • commented 2016-02-23 16:59:03 -0500
    The government is to blame for not passing MPRA earlier than 2014. The CSPF has been in critical status for over a decade. If adjustments were made earlier, the proposed cuts now would not have to be so drastic! Shame of the government and shame on Central States for not taking accountability for this crisis, by making excuses (see my following post) Also, shame on Nyhan and his staff for taking lavish salaries with increases during the last few years. Now, we have retirees pitted against actives to fight for the scraps. This is a travesty and a disgrace!!
  • commented 2016-02-23 16:50:33 -0500
    I am one of those cspf getting my pension cut by 60%.. The only thing I can do in July is start bankruptcy proceedings, and ruin my good credit I worked so hard to get and keep..I agree this is going to cause so many hardships, and I’m sure the courts will be filled with peope like me..and just watch the suicide rates go up for those who can’t make it in any other way…while those big wigs just sit there and laugh their asses off at people like us…I pray for karma!!!!
  • commented 2016-02-23 16:46:45 -0500
    The Ponzi scheme of CSPF has been failing for some time. The number of active participants has now shrunk to 61k. However, Nyhan and his staff continue to take out lavish compensation like a Bernie Madoff.
    Let me elaborate! The fund has set up poorly from the get go. It was set up to have the active participants pay for the retirees. Many retirees were promised $3000/month or more after 30 years of contributions. So most of these individuals put less than $150k of total contributions into CSPF during the course of their working years. So if they collect for 20 years ( say age 58-78) they will have collected $720K. Clearly this is a great return on their investment, better than the 10.8% annualized returns of the fund since 1980 or the 7.1% returns of the fund during the last decade. This difference is paid for by the active participants, like a Ponzi scheme. The current 61k active participants collective contribute about $700 million or .7 billion annually. Yet, the retirees collectively are pensioned $2.8 billion annually. The current $15 billion in the fund needs to make 14% just to cover this 2.1 billion operating deficit.
  • commented 2016-02-23 16:14:37 -0500
    This will hurt so many retirees who still owe on their homes and cars etc. who depended on full pension to pay for the homes that they bought at retirement. This will cause many hardships. Not fair at our age to send a man at 73 to go out and try to find a job that will make up the difference. Almost impossible. Wal Mart don’t pay that much. Not safe to go back out on the road. We don’t need men from 73 to 85 driving semis.!!! What are you people thinking of. Shameful that our government would let this happen in America. Concerned wife. The mental anguish is too much for the men going through this.
Get Advice Join TDU Donate

Recent News

First Look at UPS Contract Proposals

The proposals have been approved for the UPS national contract. Here are some of the issues that will be on the table when negotiations begin in January.  (Reprinted from www.TeamstersUnited.org)

first-look-thumb.jpg

UPS Bargaining Proposals Set

The Teamster bargaining demands for the UPS contract were approved by representatives from UPS locals today at the Two-Person meeting held near Washington, DC. (reprinted from www.TeamstersUnited.org)

View More News Posts