Under legislation passed by Congress in 2014, potential cuts are possible for the first time for financially distressed multi-employer pension plans who want to reduce benefits for retirees in order to improve the solvency of the fund.
1. Which fund is among the first to apply to take advantage of the legislation and who are their constituents?
2. How long has pension security been protected according to the article?
3. How effective is the Pension Benefit Guaranty Corporation in bailing out pension funds and why?
4. What caused the investment imbalance in the Central States Pension Fund?
Source: Marte, J. (2016). One of the nation’s largest pension funds could soon cut benefits for retirees. The Washington Post, April 20 (Retrievable online at https://www.washingtonpost.com/news/get-there/wp/2016/04/20/one-of-the-nations-largest-pension-funds-could-soon-cut-benefits-for-retirees/?hpid=hp_hp-more-top-stories_pension-711a%3Ahomepage%2Fstory)