Congress approves plan to allow pension cuts

Money Moves
CNN Money

More than a million retired and current truck drivers, construction workers and other union workers could see their pension benefits cut now that Congress passed a proposal aimed at shoring up some of the nation’s biggest pensions.

Tacked on as an amendment to the government’s $1.1 trillion spending bill, the proposal was approved by the Senate late Saturday night…

…Multiemployer pension plans cover more than 10 million workers and retirees in the trucking, manufacturing and other industries. But many of these plans have struggled in the last decade as they grapple with an aging workforce and major investment losses from the recession. Plus, many larger employers have pulled out of the plans.

That has put a major strain on the Pension Benefit Guaranty Corporation, the government agency that insures pension plans, which last month said its reserves are dangerously low…



The complete article, with video, is at CNN Money.



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