New York State Teamsters Conference Pension and Retirement Fund, Syracuse, applied to reduce benefits under the Multiemployer Pension Reform Act of 2014. The application was posted on the Treasury Department’s website on Tuesday.
The application calls for two different benefit suspensions: 20% reductions for active workers and 31% for retired or former participants. Those changes are projected to reduce liabilities by $130 million and $497 million, respectively. The plan is currently projected to be insolvent during the 2027 plan year.
If approved, the benefit reductions would go into effect on July 1, 2017. As of Jan 1, 2014, the most recent 5500 filing, the plan was 46.5% funded, with $1.46 billion in assets and $3.14 billion in liabilities.
Once an application is submitted, the Treasury Department has 225 days to respond to the application, which is dated Aug. 31.