We call your attention to one excellent example of the many hidden pension problems we are facing but remain out of the headlines. This article briefly, but clearly describes the history and present condition of The Central States Pension Fund.
The Plan has determined that its funds will be exhausted within 10 years and has submitted a roadmap for reorganization that was recently rejected by the Treasury. In your review, Dear Reader, you may find astounding that the Trustees submitted the reorganization plan with an estimated growth rate of over 7% per year. Apparently, they have discovered how to consistently earn a growth rate going forward unachievable previously by the fund (or just about anybody). The Treasury differs in this belief. The Treasury also does not believe the participants have not properly been informed of the extent of the hammering they will take. The participants are either shocked into a comma, do not understand what is happening, or expected this.
As an observation, see how well The Central States Pension Fund can has been kicked down the road.
1. The trustees notified the Treasury of the deteriorating condition of the Plan.
2. The trustees submitted a plan for reorganization.
3. The Treasury rejected the plan.
4. The trustees now indicate they are out of ideas.
Within 10 years the Central States Pension Fund will run out of money. The politicians, trustees, judges, and department officials (past, current and future) will not be blamed. This will not end well for the participants or taxpayers.