Central States Pension Fund: Update

September 17, 2010: The Central States Pension Fund had $18 billion in assets as of June 30, 2010, according to their quarterly Financial and Analytical Report.

This is down from $19.5 billion at the beginning of the year.

The loss is due to two factors: the poor stock market performance in the second quarter, and the temporary withdrawal of YRCW, the fund’s largest employer.

The fund lost 6.8 percent on its investments in the second quarter. The Central States Fund is more heavily invested in stock (67 percent of assets) than most other pension funds.

As reported by Teamsters for a Democratic Union last quarter, Goldman Sachs resigned as asset manager, effective August 2. The fund transferred the assets formerly managed by Goldman Sachs to Northern Trust, and some of it to passive investment (index funds).

George Westley, who long ago retired as head of New Orleans Local 270, was re-appointed for another five years as a union trustee. These union appointments appear to be for life.

The Fund’s quarterly Independent Special Counsel Report devotes three pages to the critical issue of YRCW’s participation, but provides no guidance or new information on the topic.

The reports do not indicate that any changes in benefits are planned. Like all pension funds which are in the “red zone,” Central States will produce an updated 2010 rehabilitation plan.

A copy of the Central States Financial and Analytic Information is available here.

An additional report from the Special Counsel to the fund is also available here.

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