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| Retirees Rally at the Capitol, Protesting Pension Cuts | Retirees Rally at the Capitol, Protesting Pension Cuts |
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| WASHINGTON — Some 400,000 retirees who worked in the trucking, parcel delivery and grocery supply industries face drastic pension cuts on July 1 as a result of a little-noticed measure attached to a huge end-of-year spending bill passed in December 2014. | WASHINGTON — Some 400,000 retirees who worked in the trucking, parcel delivery and grocery supply industries face drastic pension cuts on July 1 as a result of a little-noticed measure attached to a huge end-of-year spending bill passed in December 2014. |
| Many members of Congress say they were not given the time to read the provisions or did not grasp the ramifications at the time, and they now say they would not have voted for the legislation. | Many members of Congress say they were not given the time to read the provisions or did not grasp the ramifications at the time, and they now say they would not have voted for the legislation. |
| The bill allowed trustees of multi-employer retirement plans to slash benefits if a pension fund’s failure was likely to overwhelm the underfunded Pension Benefit Guaranty Corporation, the federal government’s main insurance program for pension plans. | The bill allowed trustees of multi-employer retirement plans to slash benefits if a pension fund’s failure was likely to overwhelm the underfunded Pension Benefit Guaranty Corporation, the federal government’s main insurance program for pension plans. |
| The retirees, all beneficiaries of the Central States Pension Fund, which is projected to be insolvent within a decade, were informed of the reductions through letters that began arriving in the mail last October. In many cases, the July 1 cuts would be severe. | The retirees, all beneficiaries of the Central States Pension Fund, which is projected to be insolvent within a decade, were informed of the reductions through letters that began arriving in the mail last October. In many cases, the July 1 cuts would be severe. |
| James Lambert, 69, a former trucker, from Randolph, Ohio, was told his $2,200 monthly pension payment would be slashed to $1,200. | James Lambert, 69, a former trucker, from Randolph, Ohio, was told his $2,200 monthly pension payment would be slashed to $1,200. |
| Bob Berg, 61, of Hendrum, Minn., who drove a UPS delivery truck for 30 years, was informed that his current monthly payment would drop from $2,200 to $1,150. | |
| And Judy Weeks, 62, of Davenport, Iowa, went back to work almost immediately after retiring when her husband, Terry, a former grocery store warehouse worker, learned his benefit would drop from $3,000 to $1,258. | And Judy Weeks, 62, of Davenport, Iowa, went back to work almost immediately after retiring when her husband, Terry, a former grocery store warehouse worker, learned his benefit would drop from $3,000 to $1,258. |
| They were among hundreds of people who rallied in front of the Capitol on Thursday chanting “No cuts!” — and who were joined by members of Congress who readily acknowledged that working Americans had been let down by the people who represent them. | They were among hundreds of people who rallied in front of the Capitol on Thursday chanting “No cuts!” — and who were joined by members of Congress who readily acknowledged that working Americans had been let down by the people who represent them. |
| “I am not sure I have ever seen anything that is so wrong as this pension cut,” said Senator Heidi Heitkamp, Democrat of North Dakota. | “I am not sure I have ever seen anything that is so wrong as this pension cut,” said Senator Heidi Heitkamp, Democrat of North Dakota. |
| Representative Marcy Kaptur, Democrat of Ohio, said, “I can tell you as someone who has served here for over three decades now, it’s not on the level. You should know that when the decision was made to force your pension cuts, that bill did not come up under regular order. It never, ever had its own day in the sun.” | Representative Marcy Kaptur, Democrat of Ohio, said, “I can tell you as someone who has served here for over three decades now, it’s not on the level. You should know that when the decision was made to force your pension cuts, that bill did not come up under regular order. It never, ever had its own day in the sun.” |
| By law, the cuts must be approved or rejected by the Treasury Department, which in the face of outcry has now turned for help to Kenneth R. Feinberg, the lawyer who administered compensation related to the Sept. 11 attacks and the BP oil spill in the Gulf of Mexico. | By law, the cuts must be approved or rejected by the Treasury Department, which in the face of outcry has now turned for help to Kenneth R. Feinberg, the lawyer who administered compensation related to the Sept. 11 attacks and the BP oil spill in the Gulf of Mexico. |
| Mr. Feinberg has been given a May 7 deadline to make a decision. The law also contains provisions that require beneficiaries to vote on accepting the cuts, and a quirky rule that counts any beneficiaries who do not submit ballots to be in favor of the cuts. | Mr. Feinberg has been given a May 7 deadline to make a decision. The law also contains provisions that require beneficiaries to vote on accepting the cuts, and a quirky rule that counts any beneficiaries who do not submit ballots to be in favor of the cuts. |
| At Thursday’s rally, the outrage focused on the seeming lack of political will from Congress to rescue a pension plan that had promised retirement benefits to middle-class workers, even when the same Congress was willing to bail out major financial institutions during the 2008 financial crisis. The workers blamed some of the same Wall Street banks that needed bailouts for the poor investment decisions that sent the Central States Pension Fund hurtling toward insolvency. | At Thursday’s rally, the outrage focused on the seeming lack of political will from Congress to rescue a pension plan that had promised retirement benefits to middle-class workers, even when the same Congress was willing to bail out major financial institutions during the 2008 financial crisis. The workers blamed some of the same Wall Street banks that needed bailouts for the poor investment decisions that sent the Central States Pension Fund hurtling toward insolvency. |
| The bill at the center of the controversy, the Multistate Employer Pension Reform Act, was largely intended to protect the Pension Benefits Guaranty Corporation, which was at risk of being pushed into insolvency by large numbers of pension failures. | The bill at the center of the controversy, the Multistate Employer Pension Reform Act, was largely intended to protect the Pension Benefits Guaranty Corporation, which was at risk of being pushed into insolvency by large numbers of pension failures. |
| The plight of the Central States Pension Fund beneficiaries is proving a potent issue in states with some of the most hotly contested Congressional races, including Ohio and Wisconsin, where tens of thousands of people are at risk of their pensions being reduced, many of them members of the Teamsters union. | The plight of the Central States Pension Fund beneficiaries is proving a potent issue in states with some of the most hotly contested Congressional races, including Ohio and Wisconsin, where tens of thousands of people are at risk of their pensions being reduced, many of them members of the Teamsters union. |
| Senator Rob Portman, Republican of Ohio, who is up for re-election, has spoken out in support of the pensioners and introduced legislation that would change the voting process on any required cuts. But Mr. Portman, who is known as a fiscal conservative, has stopped short of calling for legislation that would immediately inject cash into the Central States fund. | Senator Rob Portman, Republican of Ohio, who is up for re-election, has spoken out in support of the pensioners and introduced legislation that would change the voting process on any required cuts. But Mr. Portman, who is known as a fiscal conservative, has stopped short of calling for legislation that would immediately inject cash into the Central States fund. |
| Beneficiaries said they blamed the poor financial state of the fund on the plan’s trustees as well as the investment banks and other financial professionals that the trustees chose to manage the fund. The beneficiaries also complained about the trustees’ support for the bill adopted in 2014, saying that they spent more than $6 million of the pension fund’s money lobbying for the legislation. | Beneficiaries said they blamed the poor financial state of the fund on the plan’s trustees as well as the investment banks and other financial professionals that the trustees chose to manage the fund. The beneficiaries also complained about the trustees’ support for the bill adopted in 2014, saying that they spent more than $6 million of the pension fund’s money lobbying for the legislation. |
| Ms. Kaptor and Representative Tim Ryan, Democrat of Ohio, have introduced legislation called the Keep Our Pension Promises Act that would repeal the December 2014 bill, and would create a “legacy fund” with the Pension Benefits Guaranty Corporation to prop up plans such as Central States that are at risk of failing. | Ms. Kaptor and Representative Tim Ryan, Democrat of Ohio, have introduced legislation called the Keep Our Pension Promises Act that would repeal the December 2014 bill, and would create a “legacy fund” with the Pension Benefits Guaranty Corporation to prop up plans such as Central States that are at risk of failing. |
| Senator Bernie Sanders of Vermont, a Democratic presidential contender, has introduced similar legislation in the Senate, but there does not seem to be sufficient support in the Republican-controlled Congress for either of those bills to move forward. | Senator Bernie Sanders of Vermont, a Democratic presidential contender, has introduced similar legislation in the Senate, but there does not seem to be sufficient support in the Republican-controlled Congress for either of those bills to move forward. |
| Ms. Weeks, who took a low-level job at a local lumber store near her home in Iowa after learning her husband’s pension could be cut, said that the couple simply could not weather a reduction in benefits of nearly 60 percent. | Ms. Weeks, who took a low-level job at a local lumber store near her home in Iowa after learning her husband’s pension could be cut, said that the couple simply could not weather a reduction in benefits of nearly 60 percent. |
| “We can’t survive,” she said while listening to speeches at the rally at the Capitol. | “We can’t survive,” she said while listening to speeches at the rally at the Capitol. |
| Mr. Feinberg, who was selected to consider the cuts proposed by the Central States plan’s trustees, referred questions to the Treasury Department. But there are signs that he is sympathetic to the retirees. | Mr. Feinberg, who was selected to consider the cuts proposed by the Central States plan’s trustees, referred questions to the Treasury Department. But there are signs that he is sympathetic to the retirees. |
| In a blog post on the Treasury Department website last month, Mr. Feinberg said that he had posted the planned cuts online and received more than 2,500 comments, and that he had also held public forums to hear from pension beneficiaries affected by the proposed cuts in Columbus, Ohio; Milwaukee; Greensboro, N.C.; Peoria, Ill.; Indianapolis; Detroit; Minneapolis; and Kansas City, Mo. | In a blog post on the Treasury Department website last month, Mr. Feinberg said that he had posted the planned cuts online and received more than 2,500 comments, and that he had also held public forums to hear from pension beneficiaries affected by the proposed cuts in Columbus, Ohio; Milwaukee; Greensboro, N.C.; Peoria, Ill.; Indianapolis; Detroit; Minneapolis; and Kansas City, Mo. |
| “Retirees have complained to me that they feel when Congress passed this law, it was done with very little public input,” Mr. Feinberg wrote. “I have been committed to making sure they feel the opposite is true of our review of the Central States Pension Plan’s application.” | “Retirees have complained to me that they feel when Congress passed this law, it was done with very little public input,” Mr. Feinberg wrote. “I have been committed to making sure they feel the opposite is true of our review of the Central States Pension Plan’s application.” |