Machinists Cut Out – IOTW Report

Machinists Cut Out

WFB: One of the nation’s largest union pension funds plans on cutting retirement benefits by 40 percent moving forward despite its overall fiscal health.

The International Association of Machinists National Pension Fund announced that it will scale back retirement funds for workers. While the system has 89 percent of the money necessary to cover projected benefits, fund director Ryk Tierney said the Board of Trustees voted to declare the fund in the “red zone,” a label applied to plans that are in danger of insolvency within seven years and only have a 65 percent funding rate. The red zone status allows retirement plan managers to cut benefits under a pension reform plan established by the Obama administration in 2014. IAM is using the declaration to put into place a rehabilitation plan.

“Voluntarily declaring red zone while the fund remains well funded at 89% allows the trustees to implement a plan to strengthen the funds financial future,” Tierney said in an April YouTube announcement.

The rehabilitation plan will eliminate all early retirement subsidies moving forward and also force employers to chip in an additional 6 percent of wages to the fund.  more here

17 Comments on Machinists Cut Out

  1. Funny how they always got there money from me from apprenticeship to retirement, a lot of money mind you, the promise of secure retirement was a given, now, when it’s needed they,disappear it, funny how that happens

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  2. Unions are a total scam. They get their workers a high wage, then drain them with dues. When push comes to shove and the workers need the union individually, they soon find that the union burns the candle at both ends: they’re in chahoots with management to brush aside individual claims of workers, and they’re in cahoots and with democat politicans who receive workers’ money paid to unions as dues in return for pro-union laws.

    Democrat corruption is total and complete. No surprise unions vote 100% democrat.

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  3. I think there is plenty of culpability to go around when it comes to unionizing and unions. And, thinking on it, aren’t most of the desired aims of unionization already met under federal employment protections, now?

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  4. How can they blame the stock market? My portfolio is up 12% this year.
    Who is running this investment plan, Homer Simpson?
    Even Barack 0bama could make a profit in this economy.

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  5. Something smells here and one would expect the feds to investigate. The 6% increase in gouging the employer was only to be expected but the reduction of benefits for a plan that is very likely as close to fully funded (I don’t believe the 89& funded number for a moment, it’s likely higher) is bullshit. If an actuarial firm has certified an audit then they need to be audited.

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  6. “… force employers to chip in …”

    Huh?
    Sounds like extortion.

    How much did the “Union” send to the DNC and that group of thugs?
    How much have Biden, Clinton, and Obola profited from Union thuggery?
    What was Reich’s cut?
    Why haven’t the Union “Board of Trustees” been charged under RICO statutes?

    Where’s that “judge” who signed off on Comey’s FISA warrant? He could be paid to sign off on a RICO warrant, couldn’t he? Sterno can’t cost THAT much!

    izlamo delenda est …

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