Monday, March 23, 2015
Significant pension cuts loom for retirees
Now, the 71-year-old says as much as $2,000 of his monthly check is at risk because of legislation passed by Congress last year that is meant to help underfunded multiemployer pension plans bolster their finances by giving them a way to cut benefits for some retirees.
“We definitely will have to adjust our lifestyle,” he said of him and his wife if there is a cut that big. “We have ongoing and increasing medical expenses. It could be catastrophic just from the respect of the money we contribute to charity and church (and) money we contribute to our grandkids for their future education.”
Wyatt, of Washington Court House, said he doubts many other retirees are aware of the risk to their pension as a result of the legislation passed in December as part of a spending bill meant to run the federal government through the rest of its fiscal year.
The legislation affecting the retirees was added at the last minute. It is targeted at companies that enter into pension plans with other companies.
There are about 10 million workers and retirees in 1,400 multiemployer plans, according to the Pension Rights Center in Washington.
Full story here..............