April 2, 2007: The Central States Pension Fund ended 2006 with a $1.4 billion gain in assets, reaching $20.7 billion—up from just $15 billion a few years ago. The fund projects that by the end of 2007, assets will be up to $21.2 billion, with expected investment returns. With better returns, the Fund projects that they will surpass $22 billion.
These figures are in the fund’s Financial and Analytical Reports obtained by TDU in February 2007.
This big gain in assets at Central States shows the impact of benefit accrual cuts imposed on members, and diversion of money from health and welfare to the pension fund for the third year in a row.
In addition, 2006 was a good year for investors, with the Fund’s investments earning 14.5 percent.
What Will it Take To Restore Benefits?
Last fall, UPS chief negotiator Ken Hall met with representatives from the Central States and other Teamster funds to get briefed on what it will take to protect and improve our benefits over the life of the UPS contract. The same figures will apply to the 2008 National Master Freight Agreement.
To date, that information has been kept secret from the members.
In December, the fund informed all Locals that all new contracts negotiated must contain eight percent annual increases in pension contributions, or those members will be kicked out of fund participation.
This mean that in the UPS contract there must be pension contributions of at least 40¢ per hour the first year, then 50¢, and then 60¢ by the fifth year if the contract is that long. These are minimums required to stay in the fund, not to restore benefit cuts.
Members Launch Petition for Retirement Security
The new rule means that UPS and freight employers will pay record contributions in the 2008 contracts. But so far only top officials at the IBT and Central States (and management) know how much we need to bargain to improve our benefits.
Some Central States Teamsters at UPS have started a petition drive to demand this information and to stand up for our benefits.
The “United to Win Strong Pensions” petition states, “UPSers work hard and we deserve strong pensions, not cuts. We will not vote to approve any contract unless it delivers the retirement security we were promised in 2002.”
The petition puts forward a program that Central States Teamsters can unite around:
- Immediately restore affordable retiree healthcare
- Give Central States Teamsters a timetable for full restoration of the 2003 pension cuts
- Inform members in writing what our benefits will be before we vote on any contract
- Include part-timers in our pension fund to improve benefits for full and part-timers alike
- Reasonable reemployment rules adopted by the Central States Pension Fund