May 5, 2010: As required under the Pension Protection Act (PPA), Central States has mailed an Annual Notice regarding the plan’s funding status.
Teamster participants employed at YRC and Holland also received a letter from Executive Director Thomas Nyhan. The letter raises concern about whether YRC will honor their contractual obligations and resume pension contributions on January 1, 2011.
Nyhan admits that, “We cannot guarantee that YRC will resume participating in the Pension Fund at that time.”
If YRC and the IBT agree to a smaller increase in pension contributions, the Fund would place YRC and Holland participants on the “default schedule” and “adjustable benefits,” such as early retirement, would be eliminated.
Central States signed off on the concession agreement that allowed YRC to suspend pension contributions from July 2009 until Dec. 31, 2010.
Their April 2010 letter appears to be both a warning to participants and an effort by Fund administrators to cover their butt in the event that YRC does not return to the Central States Pension Fund.
Click here to read the letter.