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ABF | Central States Pension Fund: $18.2 Billion!

Maybe ABF will be the next company the Teamsters Union allows to buy itself out of the CSPF. Of course for a huge payout that will disappear and be blamed on a downturn in the stock market.
 
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At this point I don't think ABF has the money to buy their way out and they are counting for congress to brew up a solution.
 
ABFer said:
At this point I don't think ABF has the money to buy their way out and they are counting for congress to brew up a solution.
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You are exactly right. Why spend millions on a buy out when they can wait for the Feds & the IBT to save them a car load of money & do it for them. Like I posted the other day, they will find away to get out from their Pension liability. Count on it. Just a matter of time.
 
At the end of 2008 the stock market, where roughly 70% of the pension is invested was trading around 7500. Today, it trades of 16,000. This is an increase of over 110% yet the Central States fund is up only 400 million or 3.5%. It is safe bet the market will NOT be up another 110% in the next five years. If the pension was up at the same percentage as the market, it would have over 35 Billion in reserves versus the 18.2 Billion listed in the report. I hope your getting the "soooooooo what."


DJIA Index Chart
 
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nothumbleenough said:
At the end of 2008 the stock market, where roughly 70% of the pension is invested was trading around 7500. Today, it trades of 16,000. This is an increase of over 110% yet the Central States fund is up only 400 million or 3.5%. It is safe bet the market will NOT be up another 110% in the next five years. If the pension was up at the same percentage as the market, it would have over 35 Billion in reserves versus the 18.2 Billion listed in the report. I hope your getting the "soooooooo what."


DJIA Index Chart
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If the pension fund was only paying out as much as it was getting in contributions, it would be 35 billion. With an average rate of return Central States Pension Fund will be in default in about 12 more years.
 
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