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.

McDaniel_thumb.jpg
Teamster pension activist Cindy McDaniel prepares to 
testify at the House Ways & Means Committee on Feb 6.

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.

The fund had $14.1 billion in assets as of September 30, 2018, which was down by $1.0 billion since the start of the year, despite the fact that the fund received a one-time payment of $417 million from the Kroger corporation to pull-out of the fund permanently.

Since September 30, the fund has lost more ground, due to the low performance of bond funds and losses in the stock market. The S&P 500 stock index has lost a whopping 7% since that time; fortunately the fund only has 14% of its assets invested in that fund index. Most of its assets have been moved into bonds, as a defensive posture to preserve remaining assets.

The report again gives 2025 as a projected date for insolvency if no Congressional action is forthcoming, and fast.

The US House of Representatives is moving forward with a positive pension bill, which would protect millions of workers’ pension, not just those in the Central States Fund. The pension movement along with the Pension Rights Center and various unions, including the Teamsters Union, are behind it.  

The Independent Special Counsel Report (pages 6-7) for the third quarter notes that the Fund supports the legislation. But the Fund is not directing sufficient resources to put muscle behind the grassroots lobbying for the bill, led by the pension movement.

The quarterly Financial Reports are available only from Teamsters for a Democratic Union. We will continue to keep members and retirees informed.

Other Information in the Reports

The Central States Fund had 54,394 active participants as of last August, and 200,715 retirees.

The average monthly pension is $1170, a figure that has held steady for a long time.

The pension fund will relocate to a new building, presently under construction, perhaps by July. The new building is owned by the Central States Health and Welfare Fund, which will lease space to the pension fund.  

The Financial Report of the Central States Health and Welfare Fund (TeamCare) reflects its continued growth in membership, assets and reserves. The H&W fund has 193,000 active participants and 8.000 retirees.


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  • Richard Dorrough
    commented 2019-02-16 09:53:14 -0500
    HAVE YOU NOTICED THAT SINCE 2016 NOT A SINGLE MPRA CUTS APPLICATION HAS BEEN DENIED

    In 2015 -2016 Treasury denied 5 applications
    “because the proposed suspension fails to satisfy the statutory criteria for approval”

    OUR UNIONS WROTE MPRA TO GIVE THEMSELVES A TOOL TO ROB RETIREES PENSION CHECKS.

    FEINBERG REPEATED OVER AND OVER THAT HE HAD NO CHOICE BUT TO FOLLOW THE NEW MPRA LAW.TREASURY UNDER FEINBERG REJECTED APPLICATIONS BASED ON CONDITIONS THAT MUST BE MEET UNDER THE NEW MPRA LAW FOR CUTS TO BE APPROVED

    OUR UNIONS THEN STARTED CRYING THAT TREASURY WAS REJECTING APPLICATIONS
    “Treasury’s implementation of MPRA has been completely outside of what Congress and the multiemployer community intended. Treasury’s interpretation of MPRA requirements has been an enormous impediment to restoring plan solvency”“The rejection of Central States’ MPRA application will have serious negative consequences for participants, employers, unions, the multiemployer system, and all levels of government” NCCMP/UNIONS LETTER TO JSC AND RICHARD NEAL

    “The current crisis is predominantly the product of the unintended consequences of 44 years of federal laws, regulations,rules,policies,and Treasury’s unwillingness to implement the Multiemployer Pension Reform Act of 2014 in a statutorily faithful manner”“Much of this could have been solved for if Treasury had faithfully implemented the Multiemployer Pension Reform Act of 2014 (MPRA)”NCCMP/UNIONS LETTER TO JSC AND PHIL ROE

    THESE NCCMP/UNION A..HOLES HAVE EVEN GONE AS FAR AS TO BLAME THE PROJECTED PGBC 2025 INSOLVENCY ON TREASURY FOR MAKING SURE"the proposed suspension fails to satisfy the statutory criteria for approval"

    “Do you agree with PBGC’s projection of 2025 for the PBGC program’s insolvency?
    Yes, we have every reason to believe in the PBGC’s current projection based on Treasury’s unwillingness to implement the Multiemployer Pension Reform Act (MPRA)faithfully with the intent of the law, and in particular, the rejection of the MPRA application from the largest and most systemically important plan, Central States.”“Treasury’s implementing regulations and practices failed to fulfill the intent and purposes of MPRA, further jeopardizing the employers and pensions of Americans participating in those plans”.NCCMP/UNIONS LETTER TO JSC AND SENATOR HEIDI HEITKAMP

    OUR UNIONS HAVE MADE IT THEIR MISSION TO REFORM MPRA SO CUTS WOULD BE APPROVED..OUR UNIONS HAVE DECLARED IT IS THEIR MISSION TO

    “Make MPRA a Viable Solution for Plans Facing Insolvency
    We need to ensure that the Kline-Miller Multiemployer Pension Reform Act of 2014 (MPRA) is a real tool that is available for trustees to use to restore troubled plans to solvency”

    THEY TOLD THE JOINT SELECT COMMITTEE THEY MUST

    “Reform MPRA so that it is the reliable and predictable self-help tool for trustees of plans in critical and declining status that Congress and the multiemployer community intended. This will allow plans in financial crisis to restore solvency while protecting the benefits to retirees to the maximum extent possible. It is also the only tool today that will keep plans from going to the PBGC, which will improve the financial health of the PBGC’s multiemployer program without uneconomical calls for additional premiums to a failing agency”

    In 2015 -2016 Treasury denied 5 applications
    “because the proposed suspension fails to satisfy the statutory criteria for approval”

    Since 2016 . NOT A SINGLE APPLICATION HAS BEEN DENIED AND 13 HAVE BEEN APPROVED.

    WHAT HAS CHANGED SINCE 2016.HAS MPRA BEENREFORMED”.WHAT LANGUAGE?WHAT CHANGES WERE MADE AND HOW.BY WHAT APPROVAL PROCESS?THERE ARE INDICATIONS THAT TREASURY IS HELPING FUNDS GET THEIR APPLICATIONS APPROVED.IS IT TREASURY’S JOB TO “satisfy the statutory criteria for approval” OR TO HELP OUR UNIONS SCREW RETIREES??

    INSTEAD OF LETTERS TO CALL FOR THE APPROVAL OF THE GIVE THE IBT FREE MONEY ACT.PERHAPS LETTERS TO TREASURY DEMANDING THEY REVEAL THE CHANGES IN THE APPLICATION PROCESS OR ANY CHANGES TO MPRA.PERHAPS A LAWSUIT TO SEE IF TREASURY HAS BEEN BOUGHT BY THOSE DEMANDING TO “REFORM MPRA” TO MAKE SURE CUTS ARE APPROVED.

    WE THE RETIREES NEED TO SEE ANY DIRECTIVES TO TREASURY REGARDING “Treasury’s implementation of MPRA
  • Richard Dorrough
    commented 2019-02-15 14:08:34 -0500
    HOFFA YOU LYING SACK OF SHYTE

    THE IBT POSTED ..
    “Legislation Would Protect Retirements of 1.5 Million Americans Currently in Jeopardy”

    (1) If this Hoffa Act gets passed neither the Treasury or any Union International Leader has the legal right to force any fund(including Teamster funds) to apply for these loans.So what Union funds have committed to applying for these loans if this Hoffa Act becomes law.Now we know in violation of ERISA the International Unions are controlling individual funds(some by force) within their organizations.In the case of the Teamsters is somebody saying Hoffa will force funds such as the NY Teamsters funds cut under MPRA to apply for loans.

    (2) The majority of Union International leaders who are illegally controlling individual funds in their organizations in violation of ERISA do NOT support the Hoffa Act.

    (3) The majority of Union International leaders who are illegally controlling individual funds in their organizations in violation of ERISA have come out against the Hoffa Act and have declared it will not work.

    (4)The majority of Union International leaders who are illegally controlling individual funds in their organizations in violation of ERISA wrote MPRA,are behind the ongoing attacks on ERISA,have used their bought and paid for political influence and Union members money to wage a non stop attack on existing fund oversight regulations,have worked to undermine any attempt at increased fund oversight regulations,have called the language in the Hoffa Act restricting High Risk Alternative investments absurd and have written and are promoting their own “Loans with Cuts” legislation

    (5) The majority of Union International leaders who are illegally controlling individual funds in their organizations in violation of ERISA are demanding that Treasury expedite the process to approve the MPRA cuts applications.

    (6)MPRA applications by UNION funds have jumped to 34 with 13 applications approved. Applications are now being approved in as little as 3 months.If Hoffa Act loans will stop insolvency why are they increasing applications and conspiring with Treasury to expedite approvals.

    (7)The majority of Union International leaders who are illegally controlling individual funds in their organizations in violation of ERISA oppose the Hoffa Act language that as a condition of a loan that stops their use of MPRA,increases oversight, restores cuts under MPRA,stops high risk alternative investments and restricts their use of loan money.So I ask you what Union fund WILL BE ALLOWED to apply for loans if the Hoffa Act is passed and Pension Rehabilitation Administration is created.

    (8)The Central States Fund participants are NOT facing cuts and the fund cannot reapply for cuts under MPRA.
    The only purpose of the Hoffa Act for the Central States fund is the claim the loans will stop its projected 2025 insolvency.The NUCPP muppets are claiming The Central States Fund, which the NUCPP muppets says supports the Hoffa Act, will be applying for loans.Says who.

    The fund gave $2 million to the Groom Law firm to lobby FOR MPRA.The fund has declared the Loan Program will not stop it from going insolvent indefinitely,they will not be able to repay the loans and they will need $20-25 billion in additional free money for the PGBC they “WILL NEVER PAY BACK”. The Central States fund is under a consent decree.This was not forced on it by the Feds. It was agreed to by the accused IBT and fund crooks rather than face further prosecution.Anything this fund does has to go before the CONSENT CASE SPECIAL COUNCIL, be reviewed by the DOL and approved by the Consent Judge.The CONSENT CASE SPECIAL COUNCIL has just advised the Consent Judge "the Loan Program will not stop the fund from going insolvent indefinitely,they will not be able to repay the loans and they will need $20-25 billion in additional free money for the PGBC they “WILL NEVER PAY BACK”…What proof do they have the DOL,the Consent special council and the Consent Judge will approve any request to apply for loans.In their on going agenda to lie for Hoffa and Nyhan and hide their complicity the NUCPP muppets have repeatedly declared that the Consent Court is in complete control of the fund and the Trustees and Nyhan make no decisions. We know that is BS but does the Judge have to approve any request to apply for loans under the Hoffa Act and will he if the Consent Special Council has advised him the Loan Program under the Hoffa Act is BS??Are they now saying the Trustees can bypass the Consent Court..

    The DOL is clearly in bed with the Union International leaders who are illegally controlling individual funds in their organizations in violation of ERISA. The DOL indicated to a Federal Court it supports cuts and MPRA.In the UPS Retirees “Taking” lawsuit against MPRA the Feds argued the that plaintiffs failed to address “the value of MPRA” .. So the feds position is fire baaad..MPRA gooood.Will th DOL allow Central Sates to apply for loans
  • Richard Dorrough
    commented 2019-02-15 14:07:44 -0500
    “The ISC report never stated that the CSPF’s actuary said “the UPS legislation will work.”BS. The ISC repeated the Segal analysis almost word for word which states “Please note that in addition to the proposed legislation that you have provided, Segal has also performed an actuarial analysis of a loan proposal developed by the United Parcel Service (“UPS”). Segal’s actuarial analysis of the UPS proposal indicates that the loan program proposed in that legislation would be expected to allow the Fund to pay all benefits when due during the term of the loans (45 years) and to be able to repay the loans in full. In addition, the Fund would be projected to remain solvent after the end of the loan period.” The consent Judge does not need anything to be dropped to tell you to stick your Hoffa Act. “So to all of you naysayers out there that told us retiree pension fighters that we couldn’t get the CSPF cuts stopped…well we did.” BS. You stopped nothing.Feinberg did.And to clarify. Who is we. Are you speaking as a paid lacky for the IBT or yourself??He also rejected four others and when others knew he would not lay down they withdrew.The only reason the Central States fund has not reapplied is because they cannot.It has nothing to do with you or your NUCPP muppets.This is also not just the UPS legislation it is also the NCCMP legislation. Lets talk about their credibility.The NCCMP Hoffa and Murphy are still in bed with. The NCCMP who ARE our Unions and who ARE financed by our Unions The NCCMP who wrote MPRA and the Grow Act.Your H397 written by the well documented crooks at the IBT has not passed yet skippy..
  • Wes Epperson
    commented 2019-02-11 01:52:36 -0500
    The ISC report never stated that the CSPF’s actuary said “the UPS legislation will work.”
    There is no “UPS legislation”…but there is a UPS Proposal that the CSPF’s actuary has modeled and "determined that it ‘would likely allow’ the Fund to avoid its currently projected insolvency. According to the report the UPS Proposal has not been “dropped” as a formal bill.
    While UPS is always busy briefing legislators on their proposal; most know that it is nothing more or less than a UPS Corporate bailout.
    The ISC Report states, “because of certain pension guarantees and promises of indemnity that UPS has provided to its Teamster workforce, the company has an interest in pension legislation that will permit the CSPF, as well as other multiemployer plans, to avoid insolvency.”
    CSPF’s actuarial credibility on a scale of 1 to 10…how about negative 10? How about whatever UPS bailout proposal they come up will get endorsed by Central States. Remember all those thousands of new TeamCare members that Nyhan got as a result of the UPS/IBT Contract of 2014?
    Ever heard of a conflict of interest?…Oh, and how about those actuarial numbers used by CS in their MPRA Application to cut pensions by up to 70% in 2015? Those numbers were totally rejected by the Treasury Dept.
    So to all of you naysayers out there that told us retiree pension fighters that we couldn’t get the CSPF cuts stopped…well we did.
    You naysayers also said we couldn’t get a Bill passed to fix our hard earned pensions; well keep your eyes on HR 397, the reintroduced version of last years Butch Lewis Act, because we are going to get it passed.
    And then we will fight on, as we have going on 4 years, to the next step.
  • Scott Kendall
    commented 2019-02-10 17:10:10 -0500
    I’ve said before, this fund is on its way to zero and current active participants need to demand partition now. Current retirees are going to take this fund over the cliff with them.
  • Lori Essig
    commented 2019-02-10 13:47:00 -0500
    I have seen pics of the “old” building and it is impressive. Why is there a new one going up and who is paying for it? This is strange since we are out of money in 5 years +/-. Who okayed this?

    Central States Pension Fund and Central States Health and Welfare are separate entities?
  • edward martin
    commented 2019-02-09 07:53:57 -0500
    why are they building a new building? the health and welfare fund will lease space to the pension fund WTF!!!!!!!
  • Richard Dorrough
    commented 2019-02-08 19:59:52 -0500
    “The Independent Special Counsel Report (pages 6-7) for the third quarter notes that the Fund supports the legislation” It says no such thing.It says the funds actuary says the UPS legislation will work and the Hoffa Act will not stop the funds insolvency and the fund would be NOT be able to repay the loans.They also stated the fund would need 20-265 billion in FREE money from the PGBC.Do we have different copies??
  • Richard Dorrough
    commented 2019-02-08 19:52:41 -0500
    “various unions are behind it” First lets be clear that the Teamsters wrote the legislation.. Now how about you name the various Unions that have come out on support of the Hoffa Act. You see the Various Unions are opposed to the legislation and the NCCMP/Unions do NOT support it.Let also look at another very important part of the Report. The special council told the consent Judge the fund says the Hoffa Act would not work and that the UPS legislation with 20% cuts is the way to go. He repeated the Segal Actuarial Analysis that Segal wrote for their NCCMP/Union pals.
    Let me ask you this.If the Hoffa/IBT Act passes can anyone give us PROOF that funds such as the 707 fund or the NYS Teamsters Conference Fund will apply for the loans and make those retirees whole..Give me some type of PROOF that the Ohio Carpenters fund so often held up by Brown to the media will apply for the loans and make those retirees whole.The same Ohio fund that was tanked on purpose and its contributing employers moved into the newly created composite plan.The same Ohio fund who were forced by the UNION International to sit and wait for MPRA to be passed so it could apply for cuts. Will other funds already cut be allowed to apply for loans by their Unions??

    The NCCMP/Unions have made their position clear. They want the loans and cuts.“The government can do this by implementing MPRA as it was intended, reforming MPRA based on the lessons learned since 2015, and adding a new solvency restoration tool in the form of a federal loan program”They also oppose oversight and they oppose any rule that prevents them from making high risk investments. " The flip side of a related coin that some are advancing is for the government to mandate the asset allocation of plans to exclude “risky assets”like equites, except that
    this is worse" NCCMP/UNIONS..Michael Scott..
    Will they EVER take a loan that forces them as a condition of the loan to never use MPRA and to give back the cuts they so vigorously pursued??
  • Duane Mason
    commented 2019-02-08 17:35:39 -0500
    So the Fund is bleeding money but is having a new building constructed to lease to itself, and is being asked to put bigger contributions into lobbying. Cool.
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