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A startling new development could see a lot of retirees in trouble with Central States Pension Fund running out of funds and seemingly of options as well.

This issue has to do with word that the Central States Pension Fund has reached out to the government for approval in the possible reduction of pensions covering 115,000 retirees that also includes future benefits for about 155,000 present day workers.

Participants and beneficiaries were sent a letter of the row recently.

But it seems that the proposed cuts were too steep, something that goes as much as 60% for a select few. The Treasury Department eventually rejected the plan seeing that the company showed no plans of averting insolvency at all.

Central States Pension Fund could resort to come up with a new plan though the chances of that to save the drowning company do not have good chances and comply with the law.

Normally a government insurance fund like the Pension Benefit Guaranty Corporation (PGBC) would offer some aid so that retirees still get some kind of benefit. Seeing however the state of CSPF, that alternative does not offer bright prospects.

Pensioners stand to receive a smaller amount under the Central States reduction plan which will be based on the number of years a retiree has rendered. A retiree would receive a maximum $35.75 a month per year worked which amounts to about $1,072.50 a month for any individual who has rendered service for about 30 years.

But things get a bit more complicated in the business sense as pointed out by

"The fact that the ... PBGC is also running out of money means our participants may see their pension benefits ultimately reduced to virtually nothing when the fund runs out of money," said Fund director Thomas Nyhan in the letter.

A large chunk of the retirees who may be affected are believed to be truck drivers. When the trucking industry was deregulated back in the 80s, a lot of the fund’s companies went bankrupt. Right now, they pay $3 for every $1 it takes in.

The case has been brought to Congress though it seems that there could be one remedy to the row and this is the bill previously filed by Senator Bernie Sanders.

The bill is the Keep Our Pension Promises Act (KOPPA) which would provide more funding for the PBGC. It would be paid for by closing a loophole in the estate tax and a tax break on sales of expensive art and other collectibles as explained on Sanders' website.