Sheer despondence fuel retiree post pension fund cuts against Caesars Palace Group
28 March 2015
Kenneth Houng turned into one the Strip’s first Asian casino host when he join Caesars palace residence in 1982. His preference was never to work anywhere else. He worked and served 32 years at the resort, and retired as executive vice president. Caesars was the best work environment. Everyone who worked for Caesars was exceptionally pleased,” Houng, 78, said Monday. He has a vastly different feeling about Caesars today. Houng is one of 63 previous workers and administrators whose retirement fund were stopped in January, after Caesars Entertainment Corporation put its biggest working division into a Chapter 11 insolvency rearrangement with an end goal to cut $10 billion paying off debtors.
As per a recording with the U.S. Chapter 11 Court in Chicago, Caesars Palace Group are owed almost $33 million dollars in retirement pay. Rather than his month to month cheque, Houng got a structure letter/notice from Caesars dated Jan 11th 2015, clarifying his retirement trust had been incorporated as unsecured obligation in the Caesars Entertainment Operating insolvency. Other than $1,400 dollars a month in Social Security, Houng lived off the retirement cheque. “It was decimating,” said Houng, as tears welled in his eyes. “You can’t do this to individuals my age.”
The issue became exposed not long ago. The annuity plans also known as Supplemental Employee Retirement Plan, were acquired by Caesars Entertainment amid the casino operator’s different corporate acquisitions. After the Las Vegas Review-Journal initially reported the matter, Gaming Control Board member, Terry Johnson asked Caesars officials on March 11th 2015 amid a hearing over routine permitting matters, what the company planned to do about the retirement benefits.
Johnson went on by saying that the pensioners matter is of priority and should not yield throughout discussions. Caesars outside attorney Steven Pesner advised the Control Board the matter was being reviewed as urgent, in the legality format and with fairness to the pensioners in mention. Johnson however in a statement made earlier this week advised that no form of communication was received from Caesars Attorney’s for the past 2 weeks.
Caesar’s Palace representatives have appeared in front of the Nevada State Gaming Commission earlier this week. It is clear that this battle will be a very long and ugly unfolding process and would not have favourable intent for Caesars Palace Group. In the meantime Houng and other retirees caught up in the middle of this contentious matter. Amidst the dire questions mentioned, the big question is why retirees are losing their pensions in this bankruptcy, while Caesars executives, including Chairman and CEO Gary loveman, are pocketing multimillion dollar salaries and bonuses.