ROSEMONT, Ill., May 6, 2016 /PRNewswire/ -- Today, the U.S. Department of the Treasury (Treasury) notified Central States Pension Fund that our proposed pension rescue plan has been denied. A copy of the communication from Treasury is available on our website, www.cspensionrescue.com.
Although the decision by our Trustees to file this application under provisions of the Multiemployer Pension Reform Act of 2014 (MPRA) was gut wrenching, we are disappointed with Treasury's decision, as we believe the rescue plan provided the only realistic solution to avoiding insolvency.
The Central States Pension Fund Trustees will carefully consider the most appropriate next steps, based on this denial and the final guidance issued by Treasury on April 26.
Central States Pension Fund remains in critical and declining status and is projected to run out of money within ten years, or even less. Because the Pension Benefit Guaranty Corporation (PBGC), the government's pension insurance program, is also projected to run out of money, today's decision means that, absent legislative action or an approved rescue plan, Central States participants could see their pension benefits reduced to virtually nothing.
Many Members of Congress, both in the Senate and House, have been vocal in calling for Treasury to reject our proposed pension rescue plan. Central States strongly urges these Members to act now to pass legislation that protects the pension benefits of the over 400,000 participants of Central States Pension Fund—something Congress and the White House did not do when we previously proposed a remedy in 2009 and 2010.
The International Brotherhood of Teamsters, AARP and the Pension Rights Center, all of whom urged rejection of our proposed pension rescue plan, now must move beyond talk and take action to secure the funding needed to protect the pensions of all current and future Central States Pension Fund participants and beneficiaries.
We understand the uncertainty and anxiety that our participants and beneficiaries may be experiencing as this process continues. As always, our goal is to ensure that the Fund is able to continue to pay future benefits.
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SOURCE Central States Pension Fund