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Thousands of upstate New York retired Teamsters have dodged a potential pension cut, at least for now, thanks to a recent decision by the federal government.
And the retirees may face smaller cuts than the original plan called for as reductions could have been up to 31%.
Still, the respite could be short-lived as the timetable for possible cuts has been pushed forward from July 1 to Oct 1.
“We need to file another application to the Treasury Department,” said Tom Baum, volunteer retiree representative for the Teamsters’ Local 294.
Also known as the Upstate Teamsters, Local 294 represents about 16,500 retirees and another 18,500 who are currently employed.
Many are or were truck drivers or other employees of the UPS parcel delivery service, as well as drivers who worked for car haulers, who transported new vehicles from train depots to auto dealerships across the region. Most are in upstate New York with a few in New Jersey.
UPS ranks No. 1 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
Like a number of private sector unions, the Teamsters over the years have seen their membership dwindle due in part to federal deregulation of the trucking industry.
With fewer members to support retirees and following the 2008 crash, the pension fund has hit rocky financial waters. Fund administrators say if cuts aren’t made they could become insolvent by 2025.
Any cuts, though, must be approved by the federal Treasury Department.
Earlier in April, the Treasury Department sent back the Upstate Teamster’s application to make cuts.
They offered several suggestions including an updating of the fund’s actuarial mortality tables. They also wanted the fund operators to make a more optimistic assumption about their rate of return, which was pegged at 6.75% for the next decade.
| By Rick Karlin Times Union (Albany, N.Y.)
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