November 7, 2011: The mid-2011 financial report on the Central States Pension Fund is now available from Teamsters for a Democratic Union. The report, prepared by the Fund’s Independent Special Counsel, shows that Central States has to make 11 percent return on investments to keep from going backward.
The Fund took in $333 million in employer contributions for the first half of 2011, and projects an annual income from employers of $677 million. This includes the reduced contributions from YRCW, which started on July 1. But the payout of benefits will be $2.83 billion, more than four times the income for employers. This means the fund needs to make $2.2 billion on investment income, just to tread water.
The reasons? First, the disastrous move by the Hoffa administration to split the fund, allowing UPS to pull out. Second, the resulting exodus of other companies, and lack of organizing into participation in the fund, such as UPS Freight.
The fund made $1.0 billion on investments in the first six months of this year, and thus assets only went down about $93 million, due to a good period in the stock market. CSPF has 69 percent of assets in stocks. But since that time, the stock market has declined, so the third quarter CSPF report will show further losses.
Hoffa Tries to Change the Subject
In campaign literature mailed to UPS Teamsters, Hoffa claims that Sandy Pope will force UPS back into the Central States Fund. So after Hoffa runs the ship aground, he tries to claim that Sandy Pope will make UPS Teamsters hop back on the sinking ship.
Since he mailed up to five separate pieces of such literature to UPS Teamsters, spending his $3 million campaign budget, some may believe it.
Sometimes lying works in politics.
But lying will never undo the damage he has inflicted on a flagship Teamster pension fund and our union. That process will come with rebuilding Teamster power in our core industries, and strengthening all our Teamster pension funds.
A copy of the Financial and Analytical Information report of June 30, 2011 is available here.