Retired union workers facing 'unprecedented' pension cuts

Retired union workers facing 'unprecedented' pension cuts

 

CNNMoney: Hundreds of thousands of retired union workers are facing pension cuts that could reduce their monthly payments by more than half.

The proposed cuts are part of a desperate effort to head off insolvency at multiemployer pension plans, pensions that typically provide benefits for workers at several companies.

It's an unconventional move: Pension law has long maintained that cutting the benefits of those already retired is off-limits. Current law allows troubled multiemployer plans to reduce the benefits that employees earn going forward, cut early retirement and disability benefits and hike employer contributions instead.

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