Congress recently passed a spending bill that has raised concerns over the security of some pension plans. The new law allows professional trustees of some employer pension plans to cut benefits. For multi-employer fixed pension funds that meet the criteria for being sufficiently financially stressed and that get majority support for the action, pension benefits can be reduced. However, for retired employees under the pension plan that are at least 80-years-old pension benefits cannot be reduced.
See Joseph S. Karp, New Law: Some Fixed Pensions May Not Be Safe, Florida Elder Law and Estate Planning, Dec. 28, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
