Central States Fund: $15.45 Billion

The first quarter 2017 Financial and Analytical Report of the Central States Pension Fund shows that it has treaded water over the past 12 months, due to a booming stock market. But that situation cannot last.

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The Quarterly Report of the Independent Special Counsel reflects the seriousness of the situation. In fact, the Fund, on the advice of its fiduciary, Northern Trust Investments, is now decreasing its investments in stocks. This will likely yield lower returns, but should help protect the fund from any potential stock fall, as its assets dwindle in the coming years.

The fund’s $15.45 billion is 48% in stock holdings; last year it was 65%. Over the 12 months ending March 31, 2017, the fund made 12.1% on its investments, due to the fact that 2016 and early 2017 have seen a run-up in stocks. (The fund made 16.6% on its stock holdings in that year.)

Other notes of interest gleaned from the Special Counsel Report and the Financial Report

* The Central States Health and Welfare Fund (TeamCare) is buying a new building to house the pension fund and H&W fund.  The lease on the long-time home of the fund in Rosemont Illinois will not be renewed. The pension fund will lease space from the H&W fund.

* The Special Counsel Report notes the review of the fund by the Government Accountability Office (GAO), a review that was demanded by the pension movement and then requested by Senator Grassley. The final interviews of fund fiduciaries and representative were last month, on July 10, 2017.

* The pension fund has 57,739 actives and 202,485 pensioners; each number is down about 1% from a year ago.

The Financial and Analytical Report of the Health and Welfare Fund shows that its reserves continue to grow. It has 190,033 active participants and 6,512 retirees.

The quarterly financial reports on the fund are available only from Teamsters for a Democratic Union. It took a successful federal lawsuit filed by participants to make them available.


Showing 5 reactions

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  • Jim Brannan
    commented 2018-02-03 19:55:47 -0500
    I don’t care what they do with the plan as long as I get my full pension until it’s perceived failure in 2025. Nyhan ran it into the ground and he can tell all his employees why they are out of a job.
  • Scott Kendall
    commented 2018-02-03 19:43:10 -0500
    @Jim Brannon, Awesome strategy. Rely on the Wall St Ponzi scheme to offset 7 collecting retirees for every worker paying in. Wall St lost 9 billion of central state money and you want to hand them more. Real smart.
  • Jim Brannan
    commented 2018-02-03 19:33:09 -0500
    What an unbelievable crock of dung. The stock market has gone up 20,000 points since we started receivING those panic letters about our pension in 2002. The biggest problem is Nyhan, he needs to go and let someone else deal with Washington. He has shown himself to be totally incompetent and shouldn’t be the one talking for us.
    If they get a loan from the government to make the plan solvent, fine, but I need my full UPS pension payment and would rather it go insolvent then reduce my payment . I look at it as taking the full payout on a lottery jackpot and I am planning the next 7 years as if they are going under, and it’s fine with me. $168,000 for the next 7 years is better than any lesser amount. No one knows what the dollar will me worth then or even if our dollar will collapse as so many say is coming.
  • patrick hoffman
    commented 2017-09-03 08:07:09 -0400
    Wow, I can’t stand the fact money I worked for is not gonna be there..Do the cuts needed that are fair…active collectors and current contributors…OR stop taking my money…Offer a buy out that’s fair, that can be rolled over into a 401 k, IRA or annuity..Stop kicking the can down the road. I have 30 yrs into carhual…53 yrs old can’t retire body’s wore from working hard…NOW THE FUTURE LOOKS LIKE SHIT. We need new leadership that’s pro active…ORGANIZE NON UNION COMPANIES.
  • Scott Kendall
    commented 2017-08-05 18:15:58 -0400
    The “No Cuts” gang has sentenced all active participants to ZERO pensions when they retire. Or not retire now. While current collector’s receive vastly more in monthly benefits then any actuarial would have ever given based on contribution those still paying in will end up with hands full of dirt.
    The strategy here seem to be to go begging for a bailout when the fund inevitably goes belly up. Good luck with that. Like the future balance of the pension fund ZERO is the number of chance a bailout will happen.

    Blame selfish and over promised and over paid retirees for not participating in the fix.
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