Road Carriers Plan Broke?

The second multiemployer (union) plan to try and reduce participant benefits under MPRA was also the second denial. It may now be broke.

The Road Carriers Local 707 Pension Fund recently filed their 5500 form for the year ended January 31, 2016 and here is the relevant data:

Plan Name: Road Carriers Local 707 Pension Fund
EIN/PN: 51-6106510/001
Total participants @ 1/31/16: 4,445 including:
Retirees: 2,959
Separated but entitled to benefits: 771
Still working: 715

Asset Value (Market) @ 2/1/15: 67,441,444
Value of liabilities using RPA rate (3.47%) @ 2/1/15: $882,499,146 including:
Retirees: $585,668,370
Separated but entitled to benefits: $100,436,232
Still working: $196,394,544

Funded ratio: 7.64%
Unfunded Liabilities as of 2/1/15: $815,057,702

Asset Value (Market) as of 1/31/16: $29,799,694
Contributions: $6,102,778
Payouts: $48,170,731
Expenses: $1,641,694

Projecting from 1/31/16, with $4 million being paid out monthly to retirees and $500,000 in contributions coming in it would take about 9 months to burn through $30 million. That’s this month.

 

17 responses to this post.

  1. Posted by Anonymous on October 24, 2016 at 1:42 pm

    Good reading? Interesting that on order to be approved to reduce pension benefits a company must prove that it will subsequently be able to avoid bankruptcy! In this case, even if benefits were reduced the company would still be unable to avoid bankruptcy!

    Appears they will be forced out of business and then what? Will judge mandate all current creditors be made whole first or that all liquidated proceeds be given to retirees?

    In either case, pension pay outs will abruptly cease!

    Reply

  2. Posted by Anonymous on October 24, 2016 at 2:36 pm

    So is real bankruptcy ever coming to a State near you OR just a one sided modified version that benefits whom?

    Reply

  3. Posted by skip3house on October 24, 2016 at 4:16 pm

    If only all these ‘broke/going broke’ plans had stuck with straight shooter plain 8th grade arithmetic………and showed results on each pay stub……..

    Reply

  4. Posted by George on October 24, 2016 at 6:02 pm

    Hunting around the net something may have happened.

    Two posts from September 29:
    Concerned Teamster Local 707 Retirees
    https://www.facebook.com/concernedteamsterlocal707retirees/

    I don’t understand who gave them the right to cut the pensions. Does Anyone know?

    Concerned Teamster Local 707 Retirees: They didn,t cut our pension under MEPRA. They cut our pension before even appling for MEPRA.
    September 29 at 4:53pm

    MERPA = Multiemployer Pension Reform Act

    So the disaster may have already happened but there was no mainstream news or any news coverage. I personally was hoping this might have been an election year issue. I never joined FaceBook so I could not read most of the posts.

    Official web has not been updated for a while:
    http://www.ibt707.com/

    Reply

    • Posted by George on October 24, 2016 at 6:17 pm

      Full exchange:

      LH: I don’t understand who gave them the right to cut the pensions. Does Anyone know?

      Concerned Teamster Local 707 Retirees: They reduced our pensions under ERISA. Because the plan is suppose to become insolvent in February 2017….See More
      September 29 at 1:42pm

      TS: They cut my husband check he work 25 years for Obama gave them the right

      Concerned Teamster Local 707 Retirees: They didn,t cut our pension under MEPRA. They cut our pension before even appling for MEPRA.

      TS: Obama done it

      I never joined face book so I can’t see all the posts. Some posts mentioned the banks being bailed out, but not them, which is IMO true, but the observation is not going to help them.

      Reply

  5. Posted by George on October 25, 2016 at 8:41 pm

    Taylor C.

    Age: 66, Bedford, Texas

    My 25 year pension through Road Carriers 707 in New York was cut by 50% on February 1st, 2016. My wife and I are already feeling the hit. I worked 30 years in the union and this is what we get through no fault of our own. I cannot believe this can happen in America, and they blame it on Wall Street mismanagement of funds or whatever.

    Another thing I can’t understand is KOPPA introduced in June of 2015, which has 38 Democrat co-sponsors and the bill H.R. 2488 has gone nowhere. This sends me a message that republicans do not support any plan to help retirees to fix this problem. My wife and I will not have to sell out home and find an apartment. So much for the “vested, GUARANTEED Pension and our “golden years”.

    http://www.pensionrights.org/create-content/action/story-bank

    KOPPA = Keep Our Pension Promises Act of 2015

    Reply

  6. Posted by Eric on October 25, 2016 at 11:07 pm

    The only politician seemingly supporting retirees was Bernie Sanders, who got flattened by the Clinton corruption machine, which was in part, sponsored by the DNC.
    Clinton belongs in prison; Trump belongs in the nut house.
    Time for more than traffic problems in Fort Lee; time to leave the USA for good.
    Eric

    Reply

    • Posted by skip3house on October 26, 2016 at 5:55 am

      Or, you could stay around, become active, and change things. Ignorance of mortality, how money compounds ( + and – ) causes pension troubles….along with believing political promises, and just a power minded few choose candidates. Go and be heard at ‘party’ meetings !

      Reply

  7. Posted by Eric on October 26, 2016 at 8:00 am

    Skip3house:
    Did you say change things? I do not think that is possible short of a revolution. I am too old to take up arms for the young and the blissfully ignorant.
    Why should I get upset over their misfortune that is unknown to most of them at this point. Many of the young get their “news” from TV. They are far too dense to assist.
    Eric

    Reply

  8. Posted by Anonymous on October 27, 2016 at 11:04 pm

    First they came for the factory jobs while wages were high and I did not speak out—
Because I didn’t have a factory job.
    Then they came for the pensions and I did not speak out— 
Because I did not have a pension
    Then they came for Social Security and I did not speak out— 
Because I was not yet getting Social Security
    Finally they came for me—my 401K, my IRA/SEP, my 529 and there was no one left to speak for me.

    Reply

  9. Posted by MJ on October 28, 2016 at 2:22 pm

    Eric,, agreed. Let the youngins fight it out. We are all screwed one way or another.

    Reply

  10. […] Road Carriers Local 707 Pension Fund […]

    Reply

  11. […] hit the Road Carriers Local 707 Welfare Fund (Local 707) is still out there and expect dozens of other multiemployer (union) plans to be in its flight path […]

    Reply

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