The Teamsters Central States Pension Fund is cutting into benefits for YRC Worldwide employees as the trucking operator struggles to restructure its finances.
The benefit cuts are needed to compensate for the loss of $1.3 billion in pension contributions from YRC through 2015, the pension fund said in a letter.
The Central States decision affects thousands of YRC Teamsters working for reduced wages who have not received company pension contributions since mid-2009.
The $4.3 billion less-than-truckload operator is scheduled to resume partial pension contributions in June, but at about 25 percent of the previous level.