New England Pension Fund: Critical Status

The notice of critical status addressed to 72,000 participants in the New England Teamsters Pension Fund dropped a potential bombshell: the Fund’s Actuary certified to the Department of Labor that the plan is “critical and declining” and thus could possibly be subject to cuts for retirees and active Teamsters.

 

critical_status_thumb.jpg

Some of the fund’s trustees disagree with the certification by Horizon Actuarial Services, and so the fund is retaining a new actuary to get a second opinion.  

The union trustees say that they have no intention of implementing any cuts in retirees’ pensions or in the accrued benefits of working Teamsters.  The fund implemented cuts in 2009.

The fund is 55.5% funded. There are 19,000 working participants, 32,000 retirees receiving benefits, and 20,000 vested who can receive future benefits.  All UPS Teamsters, including part-timers, are participants.

The New England Fund is almost unique in that over 70% of the employer contributions go into the new “hybrid” fundEmployers can agree to pay-off their withdrawal liability over a long period to leave the fund, then re-join the new “hybrid” (also called the “new liability pool”) fund, typically at a lower contribution rate. The hybrid fund is fully funded.  UPS and many other employers have taken advantage of this option.  The fund is seeking to have more employers move into the new hybrid fund, to securely stabilize the fund.

The fund’s auditor estimates the value of the future payments of withdrawal liability by employers that opted into the new fund at $1.6 billion, according to the annual funding notice, which was also mailed to all participants.   


Showing 2 reactions

Please check your e-mail for a link to activate your account.
  • india shrimps
    commented 2019-01-04 06:17:45 -0500
    nice blog, it is about participants of employees and their works include article.this is a useful one. we will export shrimps and related prawns so you may buy or sell from us.
    http://indiashrimps.com
  • stephen rowan
    commented 2017-09-16 01:57:06 -0400
    I come here after quite a while since 2016 and entire this term i have miss the chance to get information from a bona fide source you are returned this opposition which is exceptionally cheering for me. Feel free to surf https://rospher.com/ for different writing ideas.
Get Advice Join TDU Donate

Recent News

Remembering Dr. Martin Luther King Jr.

As the country honors the life and legacy of Dr. Martin Luther King Jr., we remember his often ignored contributions to the labor movement. Dr. King understood the ties between labor rights and civil rights. He gave his life while supporting striking sanitation workers in Memphis, Tennessee. He spoke firmly against right-to-work laws, saying that “in our glorious fight for civil rights, we must guard against being fooled by false slogans, such as ‘right to work.’ It is a law to rob us of our civil rights and job rights.”

First John Coli, Now Becky Strzechowski

Chicago Teamster power broker and former Hoffa administration VP Becky Strzechowski resigned from all her Teamster positions today. Can a federal indictment be far behind?

View More News Posts