Central States Pension Financial Update

December 2, 2013: The Central States Pension Fund had $17.8 billion in assets as of June 30, 2013, which is the same amount it had at the start of the year.

The pension fund made $1.1 billion on its investments, a 6.5% rate of return in the six-month period. The high rate was due to the run-up of the stock market during the first quarter. The fund took in $332 million in employer contributions, and paid out $1.4 billion in benefits; thus it relied on the high $1.1 billion investment return to break even.

The status of the fund is thus unchanged overall. The Financial and Analytical Report for the second quarter provides detailed information. The Independent Special Counsel Report supplements that information.

Health and Welfare Fund

The Central States Health and Welfare Fund, unlike the pension fund, continues to operate in the black and grow in assets. Net assets were $1.9 billion at mid-year, up about $150 million from a year earlier. The fund pays nearly $100 million in benefits per month, and thus has 19 months of reserves.

The report notes that presently Central States H&W has 40,000 UPS participants, and anticipates a big growth in that number in the future due to the proposed UPS contract, which remains unratified by rank and file members.

The report makes no mention of the historic rejection by UPS members of 18 supplemental agreements, in large part due to proposed cuts in health benefits. Since that time, the offer has been sweetened with improved benefits by Central States.

The 40,000 present participants are full-time UPS Teamsters in the South, the Carolinas and various areas of the Central Region including Cleveland, Kansas City, and Louisville.

Members of TDU won in federal court the right of members to have access to these documents, and TDU provides this information to Teamster members and retirees.


Be the first to comment

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

Recent News

Western Pennsylvania Supplement Out for Second Vote

Fifty seven percent of Western PA UPSers Voted No on the first proposed agreement, with 52% turnout. Now members are preparing to vote for the second time.

Third Quarter Financials: Central States Pension Bleeding - Congress Must Act to Protect Pensions!

The 2018 third quarter Financial and Analytical Report on the Central States Pension Fund shows that the Fund continues to bleed money, underscoring the importance of Congressional action this year to protect the pensions of millions of working families.

View More News Posts