Central States Fund: 35 Companies Switch to “New” Plan

February 8, 2013: The third quarter financial report on the Central States Pension Plan indicates that the fund had $18.0 billion in assets as of the end of September 2012.  

This means the fund held its own for the first nine months of 2012, but surely fell behind in the fourth quarter, when the stock market made no gains. The fund has 30% of its total assets pegged to the S&P 500 index of the stocks of the largest US corporations, which were flat in the fourth quarter. The full-year 2012 report is not yet available.

The Independent Special Counsel Report for the 3rd quarter states that 35 bargaining units have left the “old” portion of the Central States Fund, and qualified as “new” employers, by paying down their withdrawal liability. The fund has not identified which employer units these are. The financial report does not reflect much income in withdrawal liability money from this new “hybrid” plan adopted by the fund.   

An explanation of the new hybrid plan is available here

The third quarter Financial and Analytical Report on the fund is available here.

Concerned about pensions? Contact Teamsters for a Democratic Union at 313-842-2600 or click here to send us a message. You can join TDU, the movement fighting to protect our pensions, online by clicking here.

Read TDU's report Could the Central States Pension Fund Go Insolvent? here.

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