The New York Teamsters Road Carriers Local 707 Pension Fund has won the unfortunate award for “First Pension to Officially Run Out of Money.” According to the New York Daily News, and a host of angry former truck drivers who’ve had their pension benefits slashed, the Pension Benefit Guaranty Corp. (PBGC) has officially been forced to step in and take over payments to retirees of the Local 707, albeit at a much lower rate.
Teamsters Local 707’s pension fund is the first to officially bottom out financially – which happened this month.
‘I had a union job for 30 years,’ Chmil said. ‘We had collectively bargained contracts that promised us a pension. I paid into it with every paycheck. Everyone told us, ‘Don’t worry, you have a union job, your pension is guaranteed.’ Well, so much for that.’
‘It’s a nightmare, it has just devastated all of our lives. I’ve gone from having $48,000 a year to less than half that,’ said Chmil, one of five Local 707 retirees who agreed to share their stories with the Daily News last week.
‘I don’t want other people to have to go through this. We need everyone to wake up and do something; that’s why we’re talking,’ said Ray Narvaez.
This post was published at Zero Hedge on Feb 28, 2017.