This is troubling. The New York Times reports on problems with the New York State Teamsters Conference Pension and Retirement Fund:
Like many pension plans, the Teamsters fund was hurt badly by the steep market decline of 2008. Those overseeing the fund also tie its troubles to the decline of unionized employment in the trucking industry, which has translated into fewer contributions to the plan.
Both of those factors are real. But an examination of the fund identified other pernicious forces: most notably, illiquid, opaque and high-cost investments. At least 40 percent of the fund is in so-called alternative investments, including expensive private equity deals, hedge funds and real estate.
Although pension benefits may be somewhat less than they were expecting, the teamsters won’t be flung into penury even if the fund collapses—the U. S. taxpayer is on the hook for a good chunk of their pensions through the Pension Benefit Guarantee Program. The irony of people who are eligible for no pensions paying the pensions of people who are never seems to occur to anyone.
The question that should be asked is who has been benefiting from the NYSTCPRF’s mismanagement? I know it isn’t me.
Wel, the PBGC is supposes to be a Govt. created, but independant pension insurance agency, which charges per-capita, members annual premiums, and pays a pretty low backstop of about $10,000/year max if your fund goes belly up.
So far, only a few congressmen are willing to even suggest lending their support to tax dollars for private pension funds. I don’t think you have to worry about Bernie Sanders getting the “keeping our promises act”passed anytime soon.
Public pension funds are another matter, police, firemen, teachers, all manner of federal employees are guaranteed theirs, and those, you and the unpensioned truckdrivers WILL pay.