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Union Pension Turmoil

The Iron Workers Local 17 in Ohio has become the first pension fund to get Treasury Department approval to cut benefits. Had cuts not been approved, the fund was projected to go insolvent by 2024. “As for current retirees, there are 336 who will see cuts of 30 percent to 60 percent.”

In Nebraska, two cities are looking to change their police and fire benefits plan from one that is defined to a cash-balance plan, similar to a 401k. The proposed bill drew protests from firefighters and police officers in Omaha and Lincoln.

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