Form 5500 is a report that multiemployer pension funds file with the Department of Labor each year. It is dull reading but if you have the time you can uncover interesting information.Below is a quote from Central States 2013 filing ( 2014 has not been filed yet):
"As required by Internal Revenue Code Section 432, assumptions with respect to projected
industry activity are based on information provided by the plan sponsor. Based on this
information, starting with the number of participants included in the January 1, 2012 actuarial
valuation, the number of active participants is assumed to decline by 4% per year for 10 years and
2% per year thereafter and the number of employment units (weeks, days, and hours worked) are
assumed to be in accordance with the assumptions used in the January 1, 2012 valuation. The
decline is increased by 16% per year for the first 5 years and 6% per year for the next 5 years for
participants under the Default Schedule.
In addition to projections of industry activity directly linked to the level of ongoing employment,
the Trustees also anticipate that 25% of the reduction in projected employer contributions due to
the decline in the number of active participants will continue in the form of withdrawal liability
payments for 20 years, with a minimum of $80 million per year."
It shows me that CS is projecting a 40% decrease in Actives in the next 10 years from January 1,2012. Also the Trustee's are anticipating a 25% loss in employee contributions also. Let's look at the numbers:
January 1, 2012 70,158 Active
January 1, 2014 65,324 Active
January 1, 2015 60,400 Active
February 2015 57,947 Active
These figures show that in 2014 4924 actives were lost in 2014 alone. It also shows in the first 2 months of 2015 2453 actives were lost. It is clear that the lost is increasing rapidly.
This mess that CS finds itself in, which unfortunately we have been drug into, is not one big problem in itself.It is a result of many little problems, when put together, equals one huge mess.
I urge you to take the time to read the whole report. Below is a link to it. CS EIN number is 36604423 which will have to be entered. A drop down will provide you with the year you want to look up.
www.efast.dol.gov/portal/app/disseminate?execution=e2s1
"As required by Internal Revenue Code Section 432, assumptions with respect to projected
industry activity are based on information provided by the plan sponsor. Based on this
information, starting with the number of participants included in the January 1, 2012 actuarial
valuation, the number of active participants is assumed to decline by 4% per year for 10 years and
2% per year thereafter and the number of employment units (weeks, days, and hours worked) are
assumed to be in accordance with the assumptions used in the January 1, 2012 valuation. The
decline is increased by 16% per year for the first 5 years and 6% per year for the next 5 years for
participants under the Default Schedule.
In addition to projections of industry activity directly linked to the level of ongoing employment,
the Trustees also anticipate that 25% of the reduction in projected employer contributions due to
the decline in the number of active participants will continue in the form of withdrawal liability
payments for 20 years, with a minimum of $80 million per year."
It shows me that CS is projecting a 40% decrease in Actives in the next 10 years from January 1,2012. Also the Trustee's are anticipating a 25% loss in employee contributions also. Let's look at the numbers:
January 1, 2012 70,158 Active
January 1, 2014 65,324 Active
January 1, 2015 60,400 Active
February 2015 57,947 Active
These figures show that in 2014 4924 actives were lost in 2014 alone. It also shows in the first 2 months of 2015 2453 actives were lost. It is clear that the lost is increasing rapidly.
This mess that CS finds itself in, which unfortunately we have been drug into, is not one big problem in itself.It is a result of many little problems, when put together, equals one huge mess.
I urge you to take the time to read the whole report. Below is a link to it. CS EIN number is 36604423 which will have to be entered. A drop down will provide you with the year you want to look up.
www.efast.dol.gov/portal/app/disseminate?execution=e2s1