Treasury rejects plan to slash Teamsters pension benefits

Treasury Secretary Jacob Lew said in a letter to members of Congress that while the decision blocks the pending pension cuts, it does not resolve the issue because the pension plan remains severely underfunded and is projected to become insolvent within the next 10 years.

Senate Minority Leader Harry Reid, D-Nevada, said the rejection of the initial application would protect 270,000 retired truck drivers, warehouse workers, dock workers and their widows and spouses across the country "all of whom faced brutal and immediate cuts in their promised pension benefits."