Via AI-CIO
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.