As of June 30, 2021, the Central States Pension Fund had $9.3 billion in assets, which is down $1.1 billion from the beginning of 2021. This information is from the Fund’s Financial and Analytical Report for the second quarter, which was just obtained by Teamsters for a Democratic Union.
Fortunately, help is on the way due to the passage of the Butch Lewis Emergency Pension Relief Act, signed by President Biden last March. The Central States Fund expects to receive a large grant, in late 2022, to fulfill all pension promises for at least the next thirty years.
The Pension Benefit Guaranty Corporation (PBGC) is charged with making the regulations and disbursement of funds. Because the funds that have already cut benefits, including the Upstate New York Fund and the Local 707 Fund, get first priority, Central States does not expect to get the grant until late in 2022. However, that is plenty of time to head off any cuts.
The Pension Fund’s latest financial report shows that it paid $1.4 billion in benefits in the first six months of this year, but took in only $337 million in employer contributions, leading to the $1.1 billion loss.
We are also making available the second quarter report of Independent Special Counsel.