Central States Fund Down $9.8 Billion

December 11, 2008: The Central States Pension Fund has lost $9.8 billion in assets during 2008, according to a report from CSPF Director Thomas Nyhan.

As of Nov. 30, 2008, the fund’s assets were $17 billion. That is $4 billion down from the Sept. 30, 2008 figure, which we published in November.

Nyhan notes that the fund has lost 32 percent on its investment portfolio during 2008. Most pension funds, along with 401(k)s and other accounts that hold stocks and bonds, have lost similar percentages.

In the Winter edition of the fund’s Teamwork newsletter, Nyhan indicates that participants should “keep a long term perspective” and that history teaches us that the “financial markets will recover and investment values will return.”

Central States is much more dependent on investment returns than on a steady stream of employer contributions. That’s because last December, the IBT leadership allowed UPS to exit the Central States Plan, and UPS Freight was organized but not brought into Teamster pension plans.

Congress has spending billions to bail out Wall Street—but they have not taken steps to protect our pensions. Now is time for the Teamsters and the whole labor movement to launch a campaign to protect the pensions that millions of American workers are counting on.

Teamsters for a Democratic Union (TDU) will be there to join and advance this movement.

Click here to read the text of Nyhan's memo to CSPF staff on the fund and the state of the economy and prospects for the future.

What do you think our union should do to protect our pensions? Click here to send a comment to Teamsters for a Democratic Union.

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