Cleveland Iron Workers Vote Approval Of Pension Cuts

Members of Cleveland based Iron Workers Local 17 voted 2 to 1 to approve pension benefit cuts which will fall hardest on those members who have taken early retirement. According to a statement issued by the plan trustees, “a majority of the participants understood that the suspension plan, while reducing their pensions now, is a better alternative than letting the pension fund become insolvent.” The fund was predicted to run out of cash to pay benefits in 2024.

According to Karen Ferguson, Director of the Washington D. C. based Pension Rights Center, Local 17 members who retired before age 62 will have their benefits cut by as much as 60%. Cuts are expected to begin February 1, 2017.

U. S. Treasury Department is also reviewing an application by Newburgh, New York’s Bricklayers Local 5 to reduce pension benefits.