Central States Backs New Pension Proposal

James Hoffa and Ken Hall are publicly at odds as the IBT and the Central States Pension Fund are lining up behind competing proposals to address the Teamster pension crisis. 

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Just days ago, the International Union unveiled a pension legislation proposal, which was touted in the media by IBT Vice President John Murphy, Hoffa’s point man on the pension crisis.

But yesterday General Secretary-Treasurer Ken Hall told a major meeting of Teamster local officers that the Hoffa-Murphy plan “is not going to work,” and that he supports legislation that is being promoted by UPS with support of the Central States Fund.

The pension blockbuster and Hoffa-Hall split occurred on June 1 at a major meeting of Teamster local officers from the Central and Southern regions in Chicago, where Central States Director Thomas Nyhan briefed officers on the proposal which would cut current and future pensions by 20%, and secure a long-term funding stream for pension payments.

Under the proposal, the federal government would provide a multi-billion dollar loan to Central States (and other troubled plans) at a low interest rate of one percent.

The loan would allow Central States to stabilize and rebuild its assets over time, with benefits paid out from the loan.

The proposal, which would need approval by Congress, was originally put forward by UPS. The federal government currently has over $1.1 trillion in outstanding loans to private entities.

Nyhan reported that Central States has run the numbers and concluded that Hoffa’s pension plan would not work, and that the proposal put forward by UPS could work.

Three years into the pension crisis, the Hoffa-Hall administration is in chaos, with Hoffa promoting one plan and Hall openly criticizing it and promoting another.

Not a single Teamster official at the Central States meeting spoke in defense of the IBT’s plan.

Fred Zuckerman told the meeting that time is running out and that a plan is needed that will save Teamster retirement benefits and the pension funds.

Zuckerman said he would support a fair plan, but that Teamster officers, members and retirees needed to see the details to be able to evaluate if the proposal would work and how it would affect members and retirees and the fund. 

In a statement released today, Zuckerman said:

“Four hundred thousand Teamsters in the Central States are at risk of losing their pensions and tens of thousands of Teamsters in other funds face the threat of pension cuts. The clock is ticking to find solutions to the pension crisis and at this critical hour the Hoffa-Hall administration is at odds and in disarray,” Zuckerman said.

“This is worse than weak leadership. It is a betrayal on one of the most profound crises facing Teamster members, retirees and their families, said Zuckerman.”

“Teamsters and retirees have the right to the details about proposed plans to address the pension crisis,” Zuckerman said. “The pension crisis needs a solution and we will support a viable solution.”

Pension advocates -- including TDU, the National United Committee to Protect Pensions, the Pension Rights Center, the AARP and others – are backing the Keep Our Pension Promises Act (KOPPA) as the best solution, which protect all earned pensions.

We realize compromise will likely be required to get a solution, but we start from the point of defending hard-earned pensions. 


Showing 12 reactions

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  • commented 2017-09-16 23:53:42 -0400
    Real cute.they get ups help and we got shit because of hoffa.if one teamster local takes cuts then all should we are suppose to be one.we all paid the same into our pensions.but hoffa and his thieves helped them selves to our money.why didnt we get a bail out from ups that we gave our lives for neglected our families broke down our bodies.fuck you hoffa the government should put you in prison
  • commented 2017-09-16 11:31:03 -0400
    No cuts
  • commented 2017-08-16 13:50:45 -0400
    How can you promote a strong union that the teamsters used to be by having all the turmoil and dysfunction that’s it has been the past 10-15 years somebody at the top should take responsibility for the mess it’s in
  • commented 2017-07-05 21:17:35 -0400
    I think the government should control our pension fund to keep hoffas hands out of it
  • commented 2017-07-04 20:53:38 -0400
    HERE WE GO AGAIN!!! Working person has to take the hit, AGAIN. The working person had nothing to do with the loss of the money, the Government and trustees are at fault. The government at fault when chief of Justice (Lanny Breuer) failed to sue Goldman & Sach for the $13 Trillion fiasco by selling bad stock to Hudson Financial. Goldman & Sach even suckered people to invest by putting $2 million in the Hudson fund while Goldman & Sach placed $2 Billion on that it would fail. WATCH ONLINE>>>>>> http://topdocumentaryfilms.com/veneer-justice-kingdom-crime/ <<<<<<<<<< A documentary on 2008 crash, when all said and done $5 trillion was missing from pension, housing and 401K plans.WATCH the movie “The Big Short” . The trustees at fault for miss use of funds and High wages they pay Tom Nyham $698,000.00 year and the year he asked for the cuts, he received a raise of $32,000.00, how many people can keep their job AND get a raise when performance is bad?? I feel the Government should vote on the KOPPA by Bernie Sander whether or not you like him, his plan will work without costing the retirees. This would make up for the Government failure to sue Goldman and Sach without admitting they were wrong….. WE DID NOT DUE THIS<<
  • commented 2017-07-04 15:14:10 -0400
    Did UPS Lobby FOR MPra and cuts??
  • commented 2017-06-24 18:08:56 -0400
    Any proposal that might work needs Trustee Nyhan removed and possibly charged with a minimum of total ineptitude for his consistent lack of ability to properly manage our Pension fund. He’s been a big cause of the financial failure of the fund!!!! Where else can you be in charge of Investments and LOSE this much money year after year and keep your job?!?!?!? He and the other Trustees have FAILED to properly administer this fund in EVERY ASPECT!!!!! REMOVE THEM!!!! Then maybe we can discuss returning to a pension that can succeed.
  • commented 2017-06-05 04:33:22 -0400
    Why should WE be the first to give? The Government had their hands in the demise of the pension plans. The Department of Justice failed to sue Goldman and Sach when they created a $13 Trillion fiasco in 2008. When the dust cleared there was $5 Trillion missing from the pension, IRA, and housing fund. The Government knew about it and did NOTHING to stop it, or take action with Goldman Sach. The Government should help by donating funds, passing the “Keep Our Pension Promise” KOPPA Bill, that would help ALL plans. Central States Pension I do NOT trust, ALL trustees should be removed before ANY money goes to their plan. We paid for OUR pension, we pay taxes that Government waste and they want us to pay for THEIR MISTAKES. It time for Government to be Honest and work for the people they were elected to WORK HONESTLY for.
  • commented 2017-06-03 18:46:29 -0400
    The govermant can find up to 500 billiom a year in waste, without hard working people like yourselves , things wouldn’t get done, much less move forward
  • commented 2017-06-03 15:22:02 -0400
    Yrc had their pensions taken away completely. Teamsters agreed to it. Why the divide? Power? Everyone is scared and that’s exactly what they want
  • commented 2017-06-03 02:30:08 -0400
    Why didn’t Hoffa do any of this for the northeast,we had to take a 31% cut when we could of have only of taken 20% but Hoffa said no to any help in the northeast.hoffa is a good dam thief all the years people worked at ups send paid into thier pension ,and this thief say the fund is broke when it’s time for us to retire.
  • commented 2017-06-02 15:03:17 -0400
    Alliance of Independent Committees to Protect Pensions
    htpps://www.mycspensionhandsoff.com
    KOPPA – S1076 – H.R.2412
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