I worked a union job for 15 years and still receive pension updates. I know a number of people who have planned their life around these unfunded private liabilities.
I recently received the ‘Annual Funding Notice For United Food And Commercial Workers Unions And Participating Employers Pension Fund’
The total number of participants stands at 14,660. Of this number 7,358 were active [working and contributing to the pension], 2,557 were retired or separated from service and receiving benefits, and 4,745 were retired or separated and entitled to future benefits [that would be me].
The year 2010 saw the funded percentage dip below 80%
The year 2011 saw the funded percentage of the plan at 76.5%
The year 2012 saw the fund down to 66.3% funded
The year 2013 saw a slight rebound with 67.4% funded
I am no money guy. I have $9.11 in the bank. My opinion doesn't mean much here.
But, I have access to the backend of this website!
In light of the fact that the union workforce continues to shrink, when those 4,000+ people ‘entitled to future benefits’ come on line, and some of those 7,000+ ‘active participants’ move on to non union work, I think things are going to look a lot like seven sailors bailing and seven sailors piling in without buckets while some Manhattan sea worm continues to burrow into the hull of their retirement boat.
The notice does go on to point out that the fund has been in ‘endangered status’ ever since it dipped below 80%, and has been operating according to a federally sanctioned ‘rehabilitation plan’ since 2010.
The fund will fall under a higher level of scrutiny should the plan dip below 65% and earn ‘critical status’ evaluation.
I have never counted on this pension, or believed in my wildest dreams that it would survive long enough to pay me anything. However, most of the people that work for this union are, should we say, easily led. Probably the only thing the pension plan has going for it is the active participants are hard working, and that almost all of the participants smoke.
No one in government or the media will care much when this plan goes belly up. I am wondering about the many plans administered by our State and Federal masters. Baltimore area cops have a really hard time containing alcohol induced unrest by teens in June. How could they possibly deal with economic induced unrest by adults all year round?
