Madoff Losses Lead to Pension Program Changes for Union

January 20, 2009 ( - Members of the United Union of Roofers Waterproofers & Allied Workers Local 195 in Cicero, New York, learned this past weekend of the impact the Madoff scandal has had on their pension program.

Leaving a meeting on Saturday, one union member said the pension plan lost 97% of its value in Madoff-related investments, Syracuse’s News 10 station reported. The union voted on a new contract to help take care of retired members affected.

Members committed $10 per hour to the pension plan, up from $3 per hour. The news report said $3 per hour will come out of workers pay and the rest will come from other programs and contractors. In addition, members voted to end early retirement.

The union will try the new contract for one year.

Earlier this month, several central New York unions reported undisclosed losses to their pension funds related to the $50-billion Ponzi scheme orchestrated by Bernard L. Madoff (see List of Pension Funds Claiming Madoff Losses Grows).