About 5,200 active and retired Teamsters in Western New York will see their pension benefits cut effective Oct. 1.
More than 34,000 members of the New York State Teamsters Conference Pension and Retirement Fund were asked to cast ballots on a proposal to reduce benefits. Fund officials said the cuts were necessary to prevent the fund from running out of money in less than 10 years.
A total of 9,788 plan participants voted against implementing the cuts, while 4,081 voted in favor; an additional 20,767 participants did not cast a vote, according to the U.S. Treasury Department. Because a majority of eligible voters did not vote to reject the cuts, the reductions will go into effect. About 5,200 active and retired Teamsters in Western New York, from Teamsters Local 449 and 264, are expected to be affected.
Active workers' benefits will be cut by 18 percent, while retirees' benefits will be cut by 29 percent. There will be no cuts, or cuts of lesser amounts, for participants who are receiving disability benefits or who are 75 or older.