Treasury Denies Central States Benefit Cuts!

Kenneth Feinberg has recommended that the Treasury Department deny the application of the Central States Pension Fund to implement its planned pension cuts.

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The tireless work by many Teamsters is starting to pay off.

Feinberg said he rejected the application because it used flawed investment assumptions, didn’t distribute the cuts equally among members and because the notice sent to members was overly technical.

Click here to read the letter from Feinberg to Central States that details Treasury's reasons for denying the application.

Feinberg cited the outpouring by workers and retirees who flooded eight town hall meetings held by Treasury. 

Feinberg told reporters, “I must congratulate the retirees for reaching out to us and making sure that their voices were heard. I can tell you that listening to the retirees and what they had to say, of course that influenced.”

The grassroots campaign won this phase of the war, but the threat to Teamster pension continues.

The pension protection movement will need to continue to grow to help win alternatives to pensions cuts and protect our retirement security for the future. 

On to victory!


Showing 165 reactions

  • Stephanie McAllister
    followed this page 2016-10-10 12:34:34 -0400
  • Paul Dillon
    commented 2016-05-14 19:54:07 -0400
    Can’t Nyhan just start screaming we are to big to fail and get us a bail out and him a bonus?
  • Alexander Ostapowicz
    commented 2016-05-14 15:11:48 -0400
    As a retired UPS driver, I was faced with an over 50% budget cut through Central States, Thanks to all of the retired Teamsters who showed their muscle by protesting the monies they were promised their whole working life. I believe that budgets would have been a little easier to swallow if Nyhus and his cronies didn’t give themselves raises of up to $50,000 per year. I can not think of too many retired Teamsters that make that amount in a year, what Nyhus and his band of robbers got as raises! But that being said, I received a letter the other day from Central States with them boo-hooing their rejection, once again crying broke because of the Treasury decision. Come on Brothers and Sisters – let us continue to fight the good fight and keep what we were promised and had earned during our working careers.
  • Anthony Guercio
    commented 2016-05-14 14:07:13 -0400
    As a former employee at CSPF, just a clerk, I had to sign that decree then.
  • Jim Bulloch
    commented 2016-05-14 10:54:38 -0400
    Eddie. Consent Decree September 22, 1982
    Requires the Pension Fund to continue its use of a named
    fiduciary who is also the independent asset manager—with
    exclusive responsibility to manage and control the Fund’s
    assets. The asset manager is appointed by the Fund and
    approved by the court. The Secretary of Labor may object
    to the appointment. The Fund trustees are prohibited
    from participating in managing assets or investment decisions. The U.S.District Court for the Northern District of Illinois, Eastern Division, has jurisdiction to enforce the terms of the decree and supervisory power over the administration

    of the Pension Fund.

    http://www.gao.gov/assets/150/143210.pdf
  • eddie calero
    commented 2016-05-14 10:17:19 -0400
    jim please repost and show some kind of a document, that shows our trustees could do nothing to stop the lost of bad investments. I find it hard to believe, if your money is being handle by someone and you see your losing money that you would not call that person out or at least meet with them , the judge could have been removed and replaced. if you are saying the trustees have no say so than why is the fund paying them $700 thousand a year. !! something doesn’t sound right.
  • Steve Tyyne Mcintire
    commented 2016-05-13 19:23:44 -0400
    I agree Jim, I would be amazed if they’d do anything. You are right about th federal judge( we were about 70% funded with the mob in there.) northern trust and Goldman Sachs eyes must of lit up when they got to play with our money
  • Jim Bulloch
    commented 2016-05-13 19:08:51 -0400
    Oh, and just so the record is straight, none of the trustees had any control over investment of the fund, that was mandated by a Federal judge overseeing the fund, and he assigned all investments to, I believe, Northern Trust and Goldman Sachs….it is all in a previous post I made here.
  • Jim Bulloch
    commented 2016-05-13 19:05:57 -0400
    Tom, I would not get my hopes up of Congress doing anything. We make up a whopping .00127% of the population, we are union members(we all know republicans just love us) and we are not a contractor in the military/industrial complex, a big bank donor or a big wall street donor…we are expendable to them, and they could care less..
  • Lori Essig
    commented 2016-05-13 18:50:10 -0400
    Looks like none of those incompetent people at CS and the trustees are willing to give up their cushy offices and exorbitant salaries and other goodies.
    They should be forcibly removed. And investigated.
  • eddie calero
    commented 2016-05-13 14:29:34 -0400
    TM: you are right its out in the open now. but everyone knows the people in Washington do not care about the working person , and for sure they don’t don’t care about a union pension fund. your congressmen and woman will tell you what you want to hear. no one is going to bail out the teamster union pension fund. most people don’t even have a pension fund now days. I was told my pension would be cut by 52%b after 31 years of vested service . next time they put out the new plan it will most likely be 60/65% . they have to prove that the fund will not go broke in the next 30 years or so. before they give them any auth. to cut pensions. so I know in the end we will all get screw the only thing we have left to fight for is to remove nyhan and his staff and everyone else who sits on that board. they have miss handle our money for too long and blame it on everything else but their bad judgement ! ! so many of us will not vote for any cuts till they are all gone. we will go down with the ship and take their jobs with us. but a no vote will happen again till they are all gone ! !
  • Tom Saunders
    commented 2016-05-13 13:27:41 -0400
    It’s out in the news now, their only chance to cut our pension in half cspf tried to sneek it by and it failed. There is no way in hell they will cut pension now, can you actually see 40 to 50 congressmen voting yes we are going to cut old folks out of their money, let’s not be stupid. It is in the system now so their going to have to have discusions on the senate floor on this topic.
  • Steve Tyyne Mcintire
    commented 2016-05-10 21:57:36 -0400
    Father inlay same, got his 150 back when motherinlaw passed
  • Paul Dillon
    commented 2016-05-10 21:55:27 -0400
    Lowell, my dad retired in 1986, the pension benefits were much lower then. He got 1000 a month minus 15% for the survivors benefit, so 850 a month.
  • Steve Tyyne Mcintire
    commented 2016-05-10 21:44:56 -0400
    Well fatherinlaw 85 1000/month he just passed no longer on the books could have gone up after he retired
  • Lowell Weber
    commented 2016-05-10 21:39:35 -0400
    Steve Tyyne McIntire – I would agree that there are some retirees in their eighties that have minimal pensions. Most likely they only had a 10 or 15 year stint in the union to draw such a small amount. Personally, I know 4 retirees that are over 80, and each of them draw in excess of $3000 a month. Each retired shortly after the 30 and out benefit went into effect. Also, when the reduction notices were sent out last year, another friend that had just turned 76 showed me his letter. His pension was reduced a grand total of 3%. That’s right, THREE! Needless to say, he was happy as a lark. If there are to be cuts, then the only fair and equitable way to do them is across the board at the same percentage.
  • Steve Tyyne Mcintire
    commented 2016-05-10 19:54:52 -0400
    Bob, I’m afraid it is way too late in he game. The fund is going to need help
  • Steve Tyyne Mcintire
    commented 2016-05-10 19:50:49 -0400
    Spot on Bob
  • Steve Tyyne Mcintire
    commented 2016-05-10 19:49:45 -0400
    Tom, bailouts no bailouts I think cuts will be part of the equation
  • bob krouse
    commented 2016-05-10 19:20:19 -0400
    Well,at this point I think 80% of the people are on the same page. CSPF needs to get off of their high horse and come down to the ground level and talk with folks to come up with a good plan. Not dictate from some untouchable Ivory Tower.
    Retired or not, Teamsters built this Union, and I do believe members should be allowed to attempt to fix the mess. Feinberg came to the people to listen. Should not CSPF do the same?
  • Tom Dolyniuk
    commented 2016-05-10 19:11:53 -0400
    Good points, Bob. The truth remains….there is NO GOOD solution. The question is what should be done to minimize the “pain” in a “fair” way. People on different sides of the fence view this very differently because of their “bias” and or personal stake in the matter, whether a retiree, and active participant, a taxpayer, legislator, or Central States employee.
  • bob krouse
    commented 2016-05-10 19:01:15 -0400
    I think what retirees are cheering, is that they were blindsided, and now at least now they have a “stay” to actually read what is going on and prepare for something.
    The fact is,…very FEW retirees were aware of what has been going on with the fund. They’re AWARE now.
    Just because the world has internet, and cell phones doesn’t mean older retirees do.
    They are RETIRED, and left most of their worries behind them.
    They “we” trusted the people in charge.
    Lesson#1.
    Don’t kick old dogs,…they bite.
  • Tom Dolyniuk
    commented 2016-05-10 18:34:38 -0400
    I think a better solution would have been cuts, then look for a bailout. Currently, with no bailout, even more severe cuts could be proposed, and possibly accepted. Is this really what retirees are cheering about? Or are they cheering because, with no changes insolvency is likely within 10 years. NO!! they are just looking immediate short term, of course. WE need a long term solution NOW not in 2 years!!!!!
  • bob krouse
    commented 2016-05-10 18:26:48 -0400
    LOL! I’m sure he does,…and maybe the “mob”.
    I have nothing against capitalism,….but “cronyism”….now that is a different horse.
  • Tom Dolyniuk
    commented 2016-05-10 18:24:50 -0400
    Steve, the proposal was rejected so retirement age is still 62 with the 6% reductions per year.
  • Steve Tyyne Mcintire
    commented 2016-05-10 18:19:24 -0400
    Bob, the man in charge needs to go , I’d be embarrassed. If I was him
  • bob krouse
    commented 2016-05-10 17:48:53 -0400
    And,……the “man” in charge collects $700,000 a YEAR,…….over how many years?
  • Steve Tyyne Mcintire
    commented 2016-05-10 17:45:28 -0400
    Tom, that’s correct info. Today retirement age is 65 and you ar penalized 6%/yr for every year you retire before 65. At the time I retired it was 62. I was 59 when I retired thus I lost 18% right off the top. I’m thinking that are some folks in their 80s that are only getting 775-1000 a month that’s why they didn’t get cut IMO. So a guy that retires say at 57 will be cut 48% unless things have changed since I retired
  • bob krouse
    commented 2016-05-10 16:59:08 -0400
    Steve LOL! Yeah,..“Road Warriors”.
    Remember when we used to be called “Knights of the Highway”?
    I was “vested” when I got Drafted. After I got out I knew I had a job waiting, and a good pension ahead of me. Ahhhhhh Youth.
  • Steve Tyyne Mcintire
    commented 2016-05-10 16:51:07 -0400
    Bob, I started off and in the late 60s and made it full time in the early 70s. Closed half a dozen. Or so companies n the 80s. Kept working n the union companies, and the beauty of that was kept the old pension going. Always ended up middle of seniority board because of closing. Every decade got worse and worse, push push push so they could compete with the nonunions. Worked guys 12-15 hours left guys at home so they didn’t have to pay benefits. Liked my job very much, but as conditions have changed I wouldnt do it again. Sounds to me like your stuck as I was years ago. Too much time invested
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