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 64 reactions

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  • David Thayer Sr.
    commented 2018-05-07 12:25:52 -0400
    oh how I agree,we should be able to borrow money from our pensions like my wife can from hers with the state too,and we should have a say where our money goes,hoffa and who ever should not have 100% control over our money,they should not be able to give them selves raises and bonuses with our money unless the members vote on it,its our money not the teamsters.we were all forced to pay into this ridiculous fund,that has now cut our pensions 29%, but why only in the northeast,and the teamsters should not be allowed to invest our money unless the members vote on it,and absolutely no loans to any entity ever,if we cant borrow against our own money then that shut must stop.
  • David Bowles
    commented 2018-05-07 12:15:14 -0400
    The problem with pensions are that we are forced to pay into them, but not allowed a vote on how they are invested. Central States has half of our funds in loans. To who, for how long, at what interest rates none of us know. If I had invested the amount I had to pay into CS in stocks at half the average returns that stocks normally return, I would have enough funds that the returns on those funds would pay me more than what CS pays. Not a good deal. Government controlled the pension, government needs to fork over money to shore up pension plans.
  • Richard Jennings
    commented 2018-03-10 22:30:49 -0500
    Regarding Nyhan in this article, it was his leadership that helped put us in this position. It was he and CSPF spending 6 MILLION DOLLARS of that find to help lobby MPRA into existence. Not once has CSPF Leadership done anything in our best interests. On those grounds they should all be removed. Thankfully Nyhan couldn’t even get the petition for the big cut correct, that’s the only positive thing he’s helped screw up.
    With all the negative impact on the fund, proof that CSPF spent that much.. WHY has the IBT DONE NOTHING TO CORRECT IT???
  • David Thayer Sr.
    commented 2018-03-10 16:31:33 -0500
    I know the feeling I lost 300 a month and I know some lost in the thousands,I only had 20 years in,and that was to much,I get 741 a month 256 dollars of that goes to pay for my health insurance at United health Care ,I’m left with shit after 20 years working at that hell hole.friends of mine who worked for the state sitting at a desk made more money than we did and got a hell of a better pension,we we’re all under paid at ups for the back breaking work we did,.
  • David Thayer Sr.
    commented 2018-03-10 16:31:32 -0500
    I know the feeling I lost 300 a month and I know some lost in the thousands,I only had 20 years in,and that was to much,I get 741 a month 256 dollars of that goes to pay for my health insurance at United health Care ,I’m left with shit after 20 years working at that hell hole.friends of mine who worked for the state sitting at a desk made more money than we did and got a hell of a better pension,we we’re all under paid at ups for the back breaking work we did,.
  • Joseph Taurisano
    commented 2018-03-10 16:04:42 -0500
    So I guess where fucked right i lost 200. 00 dollars a month I know that is not much but i need it
  • Joseph Taurisano
    commented 2018-03-10 16:00:31 -0500
    This is bullshit chuck Schumer said that he and other politicians where checking in to it and nothing happened what the hell is going on here
  • Joseph Taurisano
    commented 2018-03-10 15:56:19 -0500
    The teamsters were the best union there not anymore we need that money back
  • David Thayer Sr.
    commented 2018-03-10 15:49:59 -0500
    What about us in the Northeast that Hoffa already cut our pensions,are we going to be left out to dry,we worked just as hard and any other teamsters and paid just as much as any other teamsters into their pension as everyone else did.but we are the only ones who were cut,if this plan foes not restore our pensions to what they were before Hoffa cut ours by 29%,then I could care less about any plan that will benefit other locals and not us in the Northeast.
  • Richard Jennings
    commented 2018-03-10 15:08:54 -0500
    When the IBT and CSPF release the contact info for all the retirees to be able to unite and get the Locals to help get current members all to sit down and support a true cure for the Pension funds repair, THEN AND ONLY THEN will we be the United Front to help correct this. The IBT should have it’s legal team and Lobbyists available to the Retirees to help FIX this. Because many of us our time in the Teamsters date back to when Jimmy Hoffa Sr was President of the IBT. What better way to show the Country Organized Labor does it’s best to honor it’s contracts and membership past and present.
    Today’s IBT is not supporting it’s retirees or their best interest in the Pension Crisis. That’s proven with the money CSPF spent supporting MPRA. The IBT also has phone numbers for members/retirees to call demanding a real resolution, including release of the retirees contact info list.
  • David Russell
    commented 2018-03-07 07:25:17 -0500
    The problem began when Central States was using UPS employees contributions to pay out benefits to retirees from other companies. That should be illegal…. Then there was the agreement to that Ken Hall and other trustees lobbied to get past behind UPSer’s backs to raise the retirement age. They were somehow successful which should also be illegal. Thank goodness UPS addressed this problem by cutting off Central States and thus creating a Pension Plan in house at UPS.
  • Michael Berbari
    commented 2017-11-02 10:24:24 -0400
    202-224-3121, who ever answers give them your zip code so they will connect you to your Senator’s office and their staff. Tell them you want the """"Brown Bill""" have family, neighbors, friends call multiple times. “If you don’t do anything, expect nothing”
  • Michael Berbari
    commented 2017-11-02 10:20:20 -0400
    As in the past, we need everyone to be calling their legislators, telling them we need a solution this year, before it is too late. """CALL The number for the CAPITAL HOTLINE is 202-224-3121.
    Now comes the other thing I need to ask you for. Some of you have already joined the NUCPP, and I thank you for that. For those that haven’t, I would ask that you consider joining, as the NUCPP is what it is going to take to finish this nightmare. At $10,000 a month, we need to have the lobbyist in place for November and possibly December, to compete with the 20 lobbyist that UPS has on the Hill everyday promoting their plan that will cut everyone’s pension by 20%. >>>>>>>The Senator Brown Bill has 0% cuts. <<<<<<<<<
    Membership in the NUCPP is only $60.00, which considering how much we have saved since the Treasury denied the CSPF application in May, 2016, is not very much. For most of us, $60 is less than one month’s reduction of what the UPS Plan would be. But we need to do this now! I ca
  • David Thayer Sr.
    commented 2017-11-01 01:37:22 -0400
    I have not heard of the browns bill only ups.i think we all should be made whole.we worked and paid into the pension fund and we had contracts to protect us.
  • Michael Berbari
    commented 2017-10-31 07:51:47 -0400
    Doug: contact your congressman and reps to have them vote for the Browns bill, it will make you whole again…The ups bill wants to cut you 20%.. Browns bill NO cuts
  • Michael Berbari
    commented 2017-10-31 07:48:37 -0400
    David Thayer:
    what plan are you talking about? The ups or browns bill? The browns bill will make you whole again, ups bill will take 20 %. Which is the better deal????
  • David Thayer Sr.
    commented 2017-10-30 23:41:29 -0400
    I know doug i worked and paid into the fund too i have about 2 months before i have to file bankruptcy because of the thieves with the teamsters.my pension has already been cut 20 years of bullshit at ups only to have my money stolen.i dont understand why no one has gone to prison.
  • Douglas Johnson
    commented 2017-10-30 22:17:41 -0400
    I have invested in central states for37years ,I don’t want a reduction in my money. I’ll have to sell some of my belongings,,I thought I could enjoy my retired life.but now I’m going to suffer because some selfish criminals !!
  • David Thayer Sr.
    commented 2017-10-30 16:00:40 -0400
    I think this is all bullshit.even if the teamsters get the loan they have no intentions of returning those of us that pensions were already cut back to what they were.this would only benefit those that have not had thier pensions cut.while we in the northeast loose all the money that we were forced to pay into the pension fund.we already did the work for ups .freezing in the winter dying of the heat in the summer never having diner with our families being out ungodly hours during chritmas instead of being with our families.this is money that is owed to us for doing that work.its like we did all that work for free and put up with ups and their bullshit while hoffa and his buddies helped themselves to our money.unless our pensions are returned to normal status i could care less about any loans.i just hope someday hoffa pays the price for what he has done to us.
  • Joseph Taurisano
    commented 2017-10-30 15:44:47 -0400
    That’s bullshit why would ups want to help retired people I hope the teamsters are happy they took money from retired people pensions that sucks we worked for that this is really bullshit fucking assholes
  • Richard Jennings
    commented 2017-10-30 15:16:39 -0400
    I am a retired member of the Teamsters. I have been involved in this fight since before we went to Washington DC to picket there. I have not worked for UPS. My Dad was a Teamster also retired. I’ve been a Teamster most of my working life too. In all those decades of being involved with organized labor….NOT ONCE did ANY Corporation DO ANYTHING that didn’t benefit them FIRST. My Dad has been on strike, I’ve been on strike and NEVER did the companies even tell the whole truth in any contract negotiations!!! So what kind of ignorance now makes anyone believe that UPS has now come up with something to help the Union Members/Retirees????
    They only care about Profit margins and keeping stockholders happy!!!!
  • Maynard Soukup
    commented 2017-10-24 12:33:26 -0400
    I don’t think people that have retired and paid their dues for 25-30-40 yrs. should have to take a cut they did everything they were suppose to do and planed on their retirement. They could make changes with current employees and the people now working would have time to plan for a smaller retirement amount. People that Are retired now had no time to plan for what has happened.
  • Maynard Soukup
    commented 2017-10-24 12:23:36 -0400
    Indigo47@comcast.net
  • David Thayer Sr.
    commented 2017-10-06 23:30:37 -0400
    I always knew hoffa and his trustees were looting our money.all i know is its deferred compensation for the hard and miserable work i did for ups and someone owes me what i earned and they sent to the teamsters.hoffa should be in prison like his father nothing more than a common thief.we in upstate deserve to have our pensions returned to the pervious levels or give us back the money we paid in less what we already recieved.obama was a master thief too by giving hoffa what he wanted.the abolishment of erisa.these pricks should not be allowed to set their own salaries or raises and bonuses with out the members voting on it.its our money that pays these scum to steal from us.if the central states gets help so they take no cuts then we in upstate should get our pensions returned.i cant live on 741.00 a month it cost me 237.00 a month for health insurance with united health care which leaves nothing for food and bills.i did not work and put up with ups so hoffa could live the good life.and everytime someone is caught stealing or embezzling hoffa dismisses the charges.i also find it hard to beleive 21 thousand people didnt vote.regardless tom baum never should of represented us.he did shit for us and helped the union.i hope the day comes soon that hoffa and his trustees thieves are sent to prison.
  • Richard Dorrough
    commented 2017-10-06 20:18:14 -0400
    In 2010 these thieves and their bought and paid for politicians,such as Earl Pomeroy tried to get the feds to give them money so they could cover for the mismanagement and looting of our funds. (Casey and Pomeroy bills)They also wanted to continue to pay themselves huge salaries,perks,hold fund meetings in exotic locations and continue to loot our funds and divert millions to fiance scams and make high risk alternative investments. That effort failed so they went to plan B. The UNIONS/NCCMP spent 2011-2013 writing Solutions not Bailouts which Kline and Pomeory declared IS MPRA.To say the demise of our funds is wall street and not these thieves is pure BS. Wall street did not loot our funds or write and fiance the inclusion of MPRA. The Union/NCCMP International rats leaders did including Hoffa.In the mean time Borzi,Pomeroy,Perlin attended meeting after meeting with the AEIP,MEBCO,The NCCMP.Pomeroy and UPS (Allston and Byrd) conspiring to tank defined benefit plans in favor of Defined Contribution. This is documented FACT yet those covering for Hoffa and Nyhan have proclaimed it “conspiracy theory” and “shit on the Internet”’The World Pension Alliance (WPA) that includes the American Benefits Council, Association of Superannuation Funds of Australia, European Association of Parametria Institutions (AEIP), International Federation of Pension Funds Administrators (FIAP), Multi- employer Benefit Council of Canada (MEBCO), National Conference on Public Employees Retirement Systems (NCPERS), National Coordinating Committee for Multiemployer Pension Plans (NCCMP) and Pensions Europe is the driving force behind this devastation to American Retirees. The Benefit cuts(MPRA) to Evergreen Plans to Composite Pans to Target Benefit Plans agenda is the agenda of these people which includes EBSA Borzi,PGBC Gautbaum and Earl Pomeroy. Missing was wall street.Retirees must be made whole but any money whether it be straight up cash or bailout or loans must include the removal and trial of the thieves. You cannot leave them in place and give the rat bastards a single dime.We are working our ass off to stop cuts when the rats at the NCCMP/Unions and those listed above are still on the attack and we have done nothing to stop them.This attack will never stop and this will be a running battle as the NCCMP and those like them hit retirees with one BS piece of legislation after another. We have not even begun to address the behind the scenes agenda to tank Defined Benefit plans by very powerful thieves.
  • Michael Berbari
    commented 2017-10-06 19:03:14 -0400
    David: That is talk of the UPS plan, it was a set-up, the meeting was set to talk about 3 different plans (1) ups plan (2) Senators Brown’s new bill (3) composite bill. As I understand it CSPF, Zuckerman, Ken Hall, and Thomas Nyhan is for the UPS plan, I personally Am not. I believe it was Ken Hall that took over and stolen the meeting,, that he asked for a motion to vote for the UPS bill and it was seconded by someone. The other 2 plans were not even discussed and it also states in the above article that it would have to be approved by Congress. (1) UPS bill is where they borrow money 4 different times with 5 year pay backs AND cut wages 20%. (2) Brown’s bill would put money in ALL pension plans that are insolvent and you would go back to your regular monthly pay. This would be done by selling 30 year bonds with borrowed money for start up and to be paid back in 30 years at 1% WITHOUT a cut. (3) Composite plan I am not to sure what that one is because CSPF and others would not be eligible for it due to certain criteria. The committee that I am with always had other pension plans and the active workers in mind. I would like to see The Brown’s bill AND KOPPA pass, that’s just my thoughts. Everybody else can decide on their own. I wish ALL retirees and active workers the best of luck..
  • David Thayer Sr.
    commented 2017-10-06 02:27:04 -0400
    Its in the paragraph above it clearly says 400 thousand central states teamsters.they are going to get a bail out but not a word is said anything about the 35 thousand in the northeast that had our pensions cut oct 1 2017.it seems like the only ones whos pensions are going to be saved is the central states.this is the reason why i think we should get an attorney.i worked just as hard as they did and paid the same amount into the fund.this was deferred compensation and someone owes me what i worked for.i did not work for that shit company UPS for free.that prick hoffa rushed to cut our pensions he used our money to lobby to get erisa abolished.then he called in his favors for donating millions of dollars of our money to get that asshole obama elected .but you never say what the bailout will do for us.its as if all your concerned with is the central states.
  • Michael Berbari
    commented 2017-10-06 01:38:58 -0400
    Richard: What should the retirees be doing?
    David: who mentioned “400 thousand”??
  • David Thayer Sr.
    commented 2017-10-05 15:50:32 -0400
    Why is it you only mention 400 thousand teamsters in the central states.we in the northeast is inly 35 thousand and we are just as important.and we already had our pensions cut.i want to know just what this proposal will do for us.will we get our cut pensions returned to us or will they stay tha same.becausecthe only thing you talk about is the central states.
  • Richard Dorrough
    commented 2017-10-05 07:30:11 -0400
    Mr Berabri who and what I am is not your concern.I am a retiree who will tell you one last time.The NUCPP do not speak for or represent me and you are not fighting for me.You are following your own agenda and making your own decisions without consulting ANYBODY but your group. So you represent only YOU and the NUCPP. We got into this mess by people claiming to represent us and expressing the need to think for us.From one of those people who"do not have a clue" I am amused that YOU think your qualified to educate anybody. I would appreciate that you STOP the NUCPP claim to be representing all retirees .You certainly do not.I have been exposing this coming crisis long before you and your self proclaim messiahs came along and to honest you could not carry my books. To your NUCPP pals claims that “Those people dont have a clue” May I say to the NUCPP. The NUCPP (National United Committee to Protect Pensions) are pompous windbags who are pursuing their own agenda and declaring anybody who refuses to follow their agenda wrong. They have become just as bad as Hoffa or Nyhan and have planted their lips firmly to Hoffa and Nyhans ass. BY their arrogant “our way or no way” and we are smarter and “those people dont have a clue”BS they have splinted a once United effort and their hijacking of the hands off logo was pure BS.
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