January 13, 2015: The Central States Health and Welfare Fund (TeamCare) is flush with money, as Hoffa and Hall make excuses for benefit cuts that UPS Teamsters and retirees have suffered.
The latest (2nd quarter 2014) TeamCare Financial and Analytical Report shows that its reserves continued to grow at an annual rate of $326 million per year during the first half of 2014.
The report notes that UPS paid a lump sum of $1.713 billion to cover the future benefits of retirees. With that payment, UPS dumped its obligation to retirees onto Central States.
As a result of a contract concession, UPS retirees in the fund will pay higher monthly premiums for health care.
In addition to that $1.7 billion, the fund has an additional $2.2 billion in reserves, which increased by $163 million during the first half of 2014.
On March 1, 2014, some 10,000 UPS Freight Teamsters joined the fund, and some 72,000 UPS package Teamsters did so on June 1, 2014. About 9,000 Local 705 Teamsters will join TeamCare on February 1, and about 6,000 Local 710 Teamsters are expected to join soon after.
Because the report only covers until June 30, 2014, the impact of some 100,000 new participants is not detailed in the report. The third quarter report – expected soon – may be more informative.
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Note: The report was submitted by the Independent Special Counsel on December 3, but the Central States Fund delayed providing it until January 12. They are bound by a court order which we won to provide the quarterly financial reports to the attorney for retirees who sued the fund.
Teamsters for a Democratic Union (TDU) is the only source which makes these financial reports available to members.
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