If you weren’t paying close attention to happenings in our nation’s capital around the holiday season - and who could blame you - this might have slipped your notice: Important pension reforms were signed into law that will have dramatic impact on retirement for 10 million Americans.

Buried deep in the $1.1 trillion "Cromnibus" spending bill signed last month by President Obama, the reforms aim to head off a looming implosion of multiemployer pension plans - traditional defined benefit plans jointly funded by groups of employers. The eye-opener is that the reforms mean possible cuts in benefits for people who are already retired - a rare move in retirement policy.

Click here to read more at Wealth Management.

"I hauled cars out of Selkirk, New York for 31 years. I worked for a number of different companies – Automobile Transport, Nu-Car Carriers, Anchor Motor Freight, M&G Convoy, Leaseway, Ryder and finally, Allied. I retired in 2002.

I worked extremely hard in 35 below zero weather and 110 degrees in the shade. I went through lay offs, mergers, loss of seniority, company closings and now they want to cut my pension. That just isn’t right.

Welcome to the new U.S.A. It’s time to fight back."

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 (2^nd 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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January 13, 2015: A review of the 2^nd quarter 2014 financial report of the Central States Pension Fund shows that the fund had $18.7 billion as of July 1, 2014.

The fund made big investment returns in the first six months of last year, netting slightly over $1 billion, as the stock market moved up. This allowed the fund to tread water: the $1 billion was just enough, along with $400 million in employer contributions and withdrawal payments, to cover $1.4 billion in benefits. The information is detailed in the quarterly Financial and Analytical Report and the Independent Special Counsel Report.

The number of working Teamster participants declined to 60,000, reflecting the Hoffa administration’s lack of commitment to defend the fund. The number of retirees was 209,000, slightly down.

The average pension paid to retirees and surviving spouses is $1,123 per month.

Teamsters for a Democratic Union (TDU) is working to fight any pension cuts and build a movement for pension justice. Click here to find out how you can be a part of it.

Note: The report is dated December 3, 2014 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.

TDU is the only source which makes these financial reports available to members and retirees. We expect the third quarter report to issue soon.

Sign up for email updates at www.tdu.org and like us on facebook.

January 9, 2015: Teamsters and retirees from across the Central States Fund and other pension funds are organizing to protect our pensions. Central States was built with pension contributions earned by our blood and sweat.

We demand accountability and justice from the Trustees and from Hoffa. The buck stops with our General President.

 

The Buck Stops with Hoffa

Teamster officials have 50 percent of the votes in every pension plan. Hoffa should demand that the Teamster-appointed trustees Vote No on pension cuts until all the facts are known and all alternatives have been exhausted.

 

No Cuts Before An Independent Audit

No pension cuts should even be considered before there is an independent audit and actuarial review with the facts being made available to all pension fund participants. It’s time for transparency and accountability—not more sneak attacks.

 

Appoint a Truly Independent Retiree Representative

The new law requires any fund with 10,000+ participants that is considering cuts to appoint a retiree representative “to advocate for the interests of the retirees.” This representative should be a proven independent advocate—not a flunky for the Hoffa administration or Central States trustees.

 

Lift Unfair Reemployment Rules

Central States should put an end to the unfair reemployment rules before any cuts are considered. Central States has no right to cut a Teamster retiree’s pension and then tell them they cannot work to supplement it.

 

Equality of Sacrifice

Any fund executive or Teamster official that backs the pension cuts should take the same cuts themselves—starting with Central States Director Thomas Nyhan, who was paid $662,060 in 2013. James Hoffa has a special “Family Protection” pension that will pay him well over $1 million in a lump sum—from Teamster dues. What pension cut will he take?

 

Mike Walden for Central States Retiree Representative

Federal law now requires any fund with 10,000+ participants that plans to cut pensions to appoint a retiree representative “to advocate for the interests of the retirees.”

 

Mike Walden is the Teamster for the job.

 

Mike, the Chair of the Northeast Ohio Committee to Protect Pensions, helped lead the fight against the pension cut sneak attack by Congress. He is a proven independent advocate.

 

Click here to join our Campaign for Pension Justice.

 

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“Based on the track record we’ve seen from Nyhan and the trustees, can we really trust their claims on how much needs to be cut? We need an independent audit and actuarial assessment of Central States to verify numbers on what it will take to insure the best pension benefits going forward.”

 

Mike Walden, Local 24, Akron, Ohio

Roadway Retiree

Chair, Northeast Ohio Committee to Protect Pensions

 

 

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January 8, 2015: Congress approved pension cut legislation in a sneak attack amendment to the budget bill.

January 9, 2015: Reckless Wall Street schemes tanked the economy and Teamster pension funds.

January 8, 2015: The lame duck Congress attached pension cut legislation to the end-of-year spending bill that will pave the way for the worst pension cuts in Teamster history.

The recently passed federal spending plan allows big banks to renew risky trades and some pensioners' benefits to be cut.

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