PBGC Approves Local 727 and the Chicago Tribune Pension Funds’ Merger
This past November, the Teamsters Local Union No. 727 Pension Plan Board of Trustees and Chicago Newspaper Publishers Drivers Union Pension Fund representatives reached an agreement to merge the two pension funds and, in doing so, saved the pensions of approximately 850 participants. The absorption of the struggling Chicago Tribune Pension Fund by the well-funded Local 727 Pension Plan will stabilize hundreds of participants’ pensions, including Local 727-represented Chicago Tribune delivery drivers.
Before the pension merger could be finalized, the pension funds jointly contacted the Pension Benefit Guaranty Corporation (PBGC)—a federal agency responsible for protecting the pensions of participants in private-sector multiemployer defined benefit plans—and asked it to review and approve the terms of the merger agreement. Local 727 is proud to announce that the PBGC recently approved the agreement, and the merger will move forward.
Among the terms of the agreement negotiated by the Local 727 Pension Plan and Chicago Tribune Pension Fund (and approved by the PBGC) was a stipulation that requires the Tribune to pay a total of $68 million to the Local 727 Pension Plan over 6¼ years. The Tribune made its first payment to the Union Pension Plan in the amount of approximately $10 million this past April.
“The Local 727 Pension Plan Board of Trustees has worked tirelessly for years to protect and safeguard the retirements of our members,” stated Pension Plan Trustee and Local 727 Secretary-Treasurer John Coli, Jr. “We are thrilled to have been a part of saving the pensions and helping to secure the futures of so many of our hardworking Brothers, Sisters, and their families. We look forward to the conclusion of this merger and the relief it will bring to our Tribune members.”
Members with questions should contact Local 727 Business Representative Melissa Senatore at (847) 696-7500 or [email protected].
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Category: BENEFIT FUNDS, Newspaper
