More than $3 billion of Missouri pensions are at risk as the Department of Treasury considers a new proposal.
Central States Pension Fund informed its 400,000 participants it plans to cut pension payments in half due to the companies financial trouble.
The fund handles the retirement benefits for the Teamster union. Transportation employees at Central Dairy in Jefferson City and Sara Lee Fresh Bakery in Columbia are among the members of Teamster.
“The long-lasting impact of trucking industry deregulation, declining union membership and two devastating national economic recessions, have left Central States Pension Fund severely underfunded,” said Central States Pension Fund.
Trustees say they pay out $3.46 for every dollar they collect in union dues, adding that if a change is not made, the fund will dry up by 2026.
Their proposed rescue plan is being considered by the U.S. Dept. of Treasury and if approved, will go into effect July 1st.