(Mid-America Pension Rights Project) Michigan Sheet Metal Workers Pension Applies for Benefits Cuts


By Michael Katz

The trustees of the Sheet Metal Workers Pension Fund of Troy, Michigan, have reapplied for approval from the US Department of Treasury of a proposed suspension of benefits. The fund’s actuaries have estimated that as of May 1, 2019, the pension is only 40.6% funded, and is projected to become insolvent in the plan year beginning May 1, 2033.

According to the fund’s benefit reduction plan, non-active participants who retired before Aug. 1, 2009, and all terminated vested participants, would have their benefits cut by 35%, while non-active participants who retired on or after Aug. 1, 2009, would see their benefits reduced by 30%. As for active participants, the proposed reduction is 25% for employees that were hired before May 1, 2006, and for those hired on or after May 1, 2006, there would be no reduction.

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