No Pension Cuts For Michigan Teamsters Yet

The United States Treasury Department turned down the Teamsters Central State Pension Plan proposal to save the Teamster’s pensions.

Our Treasury Secretary Jacob Lew wrote a letter to Congress, explaining the reason for his denial of the plan.  He stated he denied the plan because it would not resolve the pension plans severely underfunded status.

I say okay, I understand your concern, so what is your plan?

They just cannot say it will not work and offer no other plan, can they?  Democrats, saying “your plan won’t work” is not good enough when Republicans say it, so why is it good enough when they say it?  I agree that you just cannot say no, but you also just cannot say no and not offer an alternative.

Our Michigan congressional Democrats, as well as the Teamsters union, are obviously in agreement with the Treasury Secretary, due to the fact that it would have created cuts of 60% to 70% of their members.  But again, what is your plan?

The Teamsters General President Jim Hoffa was quoted in a statement stating:

…massive cuts that would destroy so many lives. We will find a solution to this problem that will allow members and retirees to continue to retire with dignity.

Sorry for repeating myself, but once again, okay!  I am simply asking what is your plan to save the pension fund from insolvency, Mr. Hoffa?

Is it too much to ask for a different answer than “your plan will not work”?  Obviously this plan will eventually run out of money, and when it does the cuts to the pensionaries will be even greater I assume.

The Central State Pension Fund’s executive director Thomas Nyhan said in a statement:

we are disappointed with Treasury’s decision, as we believe the rescue plan provided the only realistic solution to avoiding insolvency.  For every $3.46 that the fund currently pays out in pension benefits, only $1 is collected from contributing employers, which results in a $2 billion annual shortfall.

The math does not lie, numbers are absolute, and eventually will always catch up with you.

The question of what is your plan is an easy one, so why is it not being asked?

Let’s talk about this today on The Live with Renk Show which airs Monday through Friday 9 a.m. to noon.  To let me know your thoughts during the show please call (269) 441-9595.

Or please feel free to start a discussion and write your thoughts in the comment section.