The largest pension plan serving YRC Worldwide Inc.’s unionized employees has drastically cut back benefits in response to the company’s inability to contribute to its workers’ retirement.
Central States Southeast and Southwest Areas Pension Fund announced late Tuesday that it was eliminating many “adjustable” benefits — such as certain post-retirement death benefits and benefits for those retiring before 65 — and reducing payments to early retirees. In many cases, the cuts will cost workers thousands of dollars in annual benefits.
In a letter to plan participants, Central States Executive Director Thomas Nyhan wrote that the multi-employer pension fund has struggled since YRC (Nasdaq: YRCW) stopped contributing its share in July 2009, part of a series of concessions YRC worked out with the International Brotherhood of Teamsters to help stave off bankruptcy as the recession reduced the amount of freight moving around the country.
Overland Park-based YRC was scheduled to resume contributing on Jan. 1, but YRC — still facing financial trouble — had persuaded the Teamsters in October to extend that date to June 1 and, even then, allow it to pay about a quarter of what it was paying monthly two years ago.
“In light of this drastic reduction in pension contributions, the (fund’s) restructuring plan recognized that benefit reductions for the YRCW participants would be required,” Nyhan wrote.
Nyhan added that the changes were being applied retroactively to Sept. 24, the date when YRC and the Teamsters announced the latest round of concessions. Those who retired before that date will not see any changes in their benefits.
Central States recently had told YRC workers younger than 57 not to retire right now because benefits could change drastically.
http://www.bizjournals.com/kansascity/news/2011/...ion-plan-cuts.html
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Und wo nehmen wir die 30-70 her, ohne das irgendeine News an´s Licht gekommen ist. 