August 21, 2008: The Central States Pension Fund lost $3.1 billion in assets during the first six months of this year—half the $6.1 billion UPS paid to leave the fund in December.

In the first half of 2008, the fund lost $2.2 billion on their investments, or eight percent of their assets. At the same time, they suffered a $287 million loss of income, compared to the first half of last year, because UPS is no longer contributing to the fund.

The investment losses during the first half of 2008 came as stocks dropped dramatically. Central States fared worse than most other pension funds due to their aggressive investment strategy: their Quarterly Report provides a comparison to the average of other large funds.

When the Hoffa administration gave UPS management the pensions of 44,000 full-time UPSers, they told Teamster members that the deal would work out well for the Central States Fund, because of the $6.1 billion received.

Just six months later that claim is not standing up to the test of time.

Central States has lost $600 million per year in contribution income that UPS would have had to pay in. And that income figure would grow rapidly each year, with the higher employer contributions bargained in the last contract.

Central States assets stood at $23.7 billion as of June 30, so there is still plenty of money to sustain benefits.

You can download a copy of the Quarterly Report of the Independent Special Counsel, and the Quarterly Financial and Analytical Information.

TDU members won an order in federal court that requires the Central States Fund to provide us with this information. Previously, the fund kept this information secret from members.

Have a question? Click here to send a question to Teamsters for a Democratic Union, or call (313) 842-2600.

You can support TDU’s work to safeguard our pensions by joining TDU. Click here to join today.