Central States Fund Director Reports Average Retirement Age Goes Up

January 10, 2008: The Director of the Central States Pension Fund, Thomas Nyhan, told over 100 local union officers in December that he did not want UPS to split off from the Fund, but could not stop it because the International Union and management cut the deal. “We didn’t want to lose our biggest contributor,” Nyhan stated.

Nyhan also stated that

  • Because of the UPS pullout, the ratio of retirees to active workers will eventually reach 3 to 1. (It was 1.4 to 1 in 2007)
  • The fund is 63 percent funded, but will now rise to 75 percent with the $6.1 billion withdrawal payment from UPS. The funded ratio is growing due to pension cuts and increased employer contributions.
  • The fund has made its cuts and implemented its recovery plan. No further cuts will be made.
  • The rule that requires employers to increase contributions by eight percent a year should stay in place five years; then it can come down to six percent and then four percent.
  • The Central States Health & Welfare Fund has been making in more money than it spends on benefits, and has 12.7 months of reserve funds.
  • The average retirement age has increased in just five years from 59.5 to 61.5.

The last point shows the negative impact of jacking up the cost of retiree healthcare on our members and families. Many Teamsters just cannot afford to retire, and on average, Teamsters have to work two extra years, compared to just five years ago.


Be the first to comment

Please check your e-mail for a link to activate your account.
Get Advice Join TDU Donate

Recent News

UPS has 283 million reasons to delay retro pay

Ten weeks. That’s the latest word from IBT Package Director Denis Taylor on how long it will take UPS to issue retro checks–money owed to you–following the April 29 implementation of the contract. Taylor reported to officers and agents at the national grievance panel meeting that retro checks are expected in the first pay period in July. There is no report that Taylor attempted to do anything about the stretching out of “6-8 weeks” to 10-11 weeks.

The Economic Impact of Pension Cuts

Teamsters and retirees who are asking Congress to pass legislation in the house and senate to protect earned pensions can download information on your state and congressional district, using this updated detailed economic impact chart

View More News Posts