Barring decisive action by Congress, the Central States Pension Fund, which has more than 400,000 members, will be tapped out by the end of 2025. That was the message Teamsters and Central States Pension Fund leaders delivered to a crowd of retirees Saturday in Independence.
The groups are pushing for the passage of the Butch Lewis Act, which would create a Pension Rehabilitation Administration within the Treasury Department. The administration would give pension funds low-interest, 30-year loans that they could then reinvest in secure bonds.
The plan would help cover retirement benefits and allow pension funds to remedy their cash flow issues, according to its backers.
It’s the best hope for Central States and about 130 other pension funds involving some 3.5 million workers, according to John Murphy, International Brotherhood of Teamsters vice president, who’s leading pension reform efforts.
A special Congressional committee formed in February to explore pension issues, and a report from that committee is expected after November’s midterm elections.
Read more: Kansas City Star