The PBGC, itself $33.5 Billion underfunded, will assume control of the retirees pensions and, unfortunately the taxpayers will likely be picking up the tab.
According to ABCNews12, who broke the story:
UAW Local 699 President Troy Newberry says the phone has been ringing off the hook at the union hall since word got out.
He says the No. 1 concern is whether retirees under the age of 62 will keep their supplemental pension benefits.
Those benefits are paid until a retirees reaches their social security age. According to the PBGC, that supplement likely will not be continued.
But the UAW folks say they're still not sure about that. We're also told that the international union is working on what to do next.
And while the hourly UAW workers and retirees say this is a complete shock, the salaried folks feared this day was coming for months.
Wednesday a few hundred salaried retirees met to talk about the loss of their health and life insurance benefits that they lost back on April 1.
Since that time, many worried cuts to their pensions would be next. Wednesday that concern become a reality.
Unfortunately, for these workers, they may only receive pennies on the dollar owed to them unless President Obama promises to make them whole in order to appease the UAW once again. In either case, the American taxpayers are going to be footing the bill.
To make matters worse, this is just the beginning as more and more union pension funds begin to go belly up.
For a current list of pension funds in critical status, go here.
Hat-tip to Jim Gray.