WASHINGTON (AP) – The Treasury Department has rejected an effort by the Teamsters Central States Pension Plan to cut benefits for 270,000 retired workers starting in July.
Treasury Secretary Jacob Lew says in a letter to members of Congress that while the decision blocks the pending pension cuts, it does not resolve the issue because the pension plan remains severely underfunded and is projected to become insolvent within the next ten years.
The review was conducted by Kenneth Feinberg, the outside attorney selected by Treasury to review the case.
Lew said the rejection of the proposed cuts was based on Feinberg’s findings that the plan failed to demonstrate the reductions would keep the pension plan from becoming insolvent or show they were being equitably distributed.
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