Here is my understanding of the OP's comments ( post#1).
It is a congressional bipartisan effort under the omnibus budget designed to mitigate a pension crisis before it requires a taxpayer bailout.
The plans afected are those wherein employees could transfer their pension from one employer to another ( construction, etc) The plans were set up decades ago and are viewed as an anachronism today because it the rapidly changing business climate of today companies go broke or break off certain lines.
The Teamsters tried to push through a taxpayer bailout in 2010. However if the plans do fail then they fall to the Pension Benefit Guaranty Corporation (PBGC) which is essentially underfunded
The compromise included both political parties and the union leaders calls for those pension plans deemed critical or declining (fail within 15 years or less than 80% funded) could petition the Treasury to cut benefits up to 110% of the PBGC limit The PBGC's annual max is $12,870. The reform also makes permanent 2006 Pension Protection Act that allow insolvent plans to reduce adjustable benefits that is early and disability payouts.
Wall Street Journal 12/12/2014
|