PRC comments to Treasury on the Central States Pension Fund’s application to cut retiree benefits (December 10, 2015)
The Pension Rights Center submitted comments to the Treasury Department regarding the Central States Pension Fund’s (CSPF) application to cut retiree benefits under the Multiemployer Pension Reform Act of 2014. In its comments, the Center urges Treasury to reject CSPF’s application because
- The application fails to demonstrate that the plan took all reasonable steps to avoid insolvency;
- The actuarial assumptions, particularly the projection on future investment returns, are unrealistic and will not result in the plan remaining solvent in the long term;
- The benefit distributions are not equitable, and the plan misconstrued a critical component of the statute in assigning benefit cuts; and
- The application violated explicit and implicit statutory requirements designed to ensure fairness and transparency.
Read the comments.