The United States of America’s Treasury Department had declined the implementation of pension cuts from the new and about to retire employees across the nation. The central pension dissemination agency in the United States is one of the most cash strapped federal organization in the United States of America and is struggling to stay afloat. It is a crisis situation as the pension plans and retirement schemes across the United States of America are dysfunctional and will not be able to afford the large chunk of pension plans from the baby boomer generation.
An aging population
With America’s population on the decline, the larger part of the nation’s demography still relies on the existing population, however, the country can be categorized as an old nation as the majority of the country’s age group belongs to the older generation, this has caused a large stress on the pension and retirement services, especially after the financial crisis of 2008. The United States government had proposed a large austerity drive in the country with pension cuts by cutting major benefits of the retirees, especially the ones that will soon be retiring in the coming financial year. The move did not go down well and spurred on a massive protest across the nation.
The move was declared a few months ago, with the government trying to convince retirees to agree to a pension slash of nearly 10,000 dollars a year. This unified the teamsters from all over the nation, as they were not willing to accept the terms that the Treasury Department and the retirement and pension services had proposed. In light of the ongoing protests, and a rough spell for the current administration with the pension plans, the Treasury Department had decided to put a stay on the austerity measure of cutting retirement benefits from people who will be retiring this year.
A Teamster victory
The teamsters have called a major victory and celebrated the fact that pensions were not cut. However, the official government stance was quite glib. The United States government stated that this was merely a stop gap arrangement, and the pension plan definitely needs to be revised, as there are no alternatives to the pension plan since it is a nearly bankrupt department and will entirely run out of money soon if no action is taken. The government is back to the drawing board thinking of new policy measures to rectify the situation.