Yellow | Central States Pension Fund Rescue Plan
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bigtruk_us
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It seems that the fund administration.Is trying to deflect the subsequent and possible failure of the CSPF.On everything except bad management decisions on behalf of the administrators of said fund.Could some of the problems the CSPF be on that big bad investment firm called Goldman-Sachs? Afterall a few years ago.Goldman -Sachs was going to pull the carpet out from under the struggling YRCW? A final hour volleys by Mr.Hoffa.Changed their tune at GS.Could it be that GS was charging way too much in each trade by the CSPF managers.Way more than usual charges and commissions.Than for similar trades by other funds.after the bailout money was given to GS.Plus less laws on oversight on riskier investments.GS gambled on much more riskier invedtments.Because their margins were covered by the excess bailout money.Because see they Goldman-Sachs.Didnt give twohoots in hell for our well being and solvency of our pension fund.Because if they lost money.They were still covered in allaspects.They didnt care about all the retirees and future retirees monies.Because they got theirs scott free without the risk.If a deep forensic investigation were to be performed on past trades.I bet that investigation would find large irregularities.This plan's administrators don't want this to happen.Afterall they have the law on their side to cut payments on retirees monies by 30 percent maximum.Otgerwords their rears are covered by the crominibus legislation.What a scam
CSI Dallas is conducting a full investigation.
Thanks, I checked for the updates and I sent Susan a letter, short and brief to the point. Everybody should go here and read it, every line. This is important. Thanks again, does anybody know where Susan retired from?
Freightmaster1
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Welcome to the Central States Pension Fund Rescue Plan website. This site is an easy-to-navigate clearinghouse of comprehensive, important and up-to-date information regarding the status of Central States Pension Fund’s pension rescue planning process under the Multiemployer Reform Act of 2014 (MPRA).
- What’s New
Informational Telephone Town Hall Meetings
Dial into a toll-free telephone number to listen to a brief, live presentation and ask questions from a home or mobile phone.
Call 1-877-327-9495 and enter the passcode 111566 on the dates and times indicated below.
Retirees:
Tuesday, April 14, 5:00 p.m. CDT
Active members:Tuesday, April 14, 8:00 p.m. CDT
- Pension Rescue Plan Information
The CSPF Call Center is not equipped to answer questions on this matter. Call 1-800-323-7640 for a recorded message about MPRA and the current status of our pension rescue planning.
- Participant Communications
Download letters from Central States Pension Fund to all plan participants and to retirees from retiree representative Susan Mauren.
DOWNLOAD CSPF LETTER
DOWNLOAD RETIREE LETTER
DOWNLOAD FAQ
Like many of our nation’s multiemployer pension funds, Central States Pension Fund has become severely underfunded and is headed toward financial failure. If action is not taken soon to address this funding problem, by 2026, Central States Pension Fund will run out of money and be unable to pay benefits to current and future retirees.
How did the Fund become so severely underfunded?
Baby Boomers are retiring in record numbers and the union workforce has been steadily declining for years. As a result, the Fund currently has more than three times as many retirees as active members — so, far fewer contributions are coming in than benefits being paid out.
For every $3.46 that the Fund pays out in pension benefits, only $1 is collected from contributing employers, which results in a $2 billion annual shortfall. Clearly, that math will never work.
Additionally, two major recessions have torpedoed the economy since 2000, driving down the Fund’s investment assets and pushing a large number of employers out of business or into bankruptcy.
The Multiemployer Pension Reform Act of 2014 (MPRA)
In December, the Multiemployer Pension Reform Act of 2014 (MPRA) was enacted and signed into law. MPRA allows trustees of severely underfunded multiemployer pension funds—like Central States Pension Fund—to develop a rescue plan that may include benefit reductions for both active workers and retirees, in order to save the funds and continue paying benefits for years to come.
At this time, the specifics of a rescue plan for Central States Pension Fund have not yet been decided. Our Board of Trustees is currently considering how pension benefit reductions could be implemented fairly. We expect that sometime this summer, we will be able to share specific information about a rescue plan and how it would impact our participants’ pension benefits.
If a rescue plan does go into effect, the soonest that any changes could be implemented would likely be early 2016.
For detailed information on the process and timeline for implementation of a pension benefit rescue plan developed under MRPA, please click here.
Under MPRA provisions, there can be no benefit changes for retirees 80 years of age or those participants receiving a disability benefit. Any proposed benefit reductions for retirees ages 75-80 would be done on a sliding scale to minimize impact.
Stay Informed
We encourage you to review the resources available on this site to learn more about the crisis faced by the Fund, how we reached this point—and the solution now available to us.
Due to the complex nature of the Multiemployer Pension Reform Act of 2014 (MPRA), as well as the need to respond promptly to the many questions we get daily about individual health and pension benefits, the Central States Pension Fund call center is not equipped to answer questions on this matter. Please review the answers to Frequently Asked Questions, and, if you would like to submit a question, you may reach us via the Contact Us page.
We encourage you to sign up for email alerts using the form below so we can notify you when new information is available on the website. Critical information and periodic updates will be sent to all Central States Pension Fund participants via U.S. mail.
First Name
Last Name
State
Zip Code
Are you a Central States Pension Fund participant?
Yes No
Your Email Address
Confirm Email Address
If you are a Central States Pension Fund participant, we strongly encourage you to also visit the Central States Pension Fund website so you can update your official record with your email address.
©2015 Central States Pension Fund | P.O. Box 5127 | Des Plaines, IL 60017-5127 | 1-800-323-7640
bigtruk_us
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What's the emergency? 2026 is quite a ways from 2015.Something is up.its unfair right now to start talking pension cuts.Investigations ought to ensue.There is alot of money missing.
Like the 6 billion dollars UPS paid to leave the CSPF.
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"How did the Fund become so severely underfunded?
Baby Boomers are retiring in record numbers and the union workforce has been steadily declining for years. As a result, the Fund currently has more than three times as many retirees as active members — so, far fewer contributions are coming in than benefits being paid out."
There once was 4 active paying for 1 retiree in the fund....now it is 1 active paying for 5 retirees....KK
bigtruk_us
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[Q="Kennesaw Kid, post: 921903, member: 159"]"How did the Fund become so severely underfunded?
Baby Boomers are retiring in record numbers and the union workforce has been steadily declining for years. As a result, the Fund currently has more than three times as many retirees as active members — so, far fewer contributions are coming in than benefits being paid out."
There once was 4 active paying for 1 retiree in the fund....now it is 1 active paying for 5 retirees....KK[/QUOTE]
I dont refute that fact KK.However it wasn't to many years ago.That the fund fired it's investment management company.Because as the fund administrators said..The investment company lost their money.So a new one was hired.Then the recession.Then the merge of Yellow and Roadway.Then the pay cuts.As a tag along on the last 5% giveback.We were told that YRCW could no longer pay the full contractual pension payments.The union administration placed a new account for the 25% pension payment.Of which YRCW agreed to.Then I believe a couple more cycles of recessions.Then the UPS opt out.Then around 2008.The stock market exploded to record numbers.As one retiree told me.He had called CSPF.A year or so ago.Was told by a CSPF employee.That there wasn't nothing to worry about.Because of the stock market being blistering hot in record territory.That the fund was gaining quite a bit.So what happened?? The fund calls it a rescue plan.Retirees are on the cusp of a possible 30% cut in their fixed income.All fingers are pointing at us to take it in the britches.Without any inquiry or investigation into the anatomy of this so called failing fund? The only thing shielding the funds administrators is the crominibus law on pension reform.Of which this is called a bailout for the adminstrators.Doesnt seem to be anyone being held accountable for losing this Pension funds money.Nothing is going to happen to the administrator's salary."if something isn't done by 2026 the fund COULD go insolvent.They are crying wolf too soon and they have this 30% maximum deduction backing them up.I do understand the ratios of withdrawals to incoming revenues.This seems too easy of a cop out
Baby Boomers are retiring in record numbers and the union workforce has been steadily declining for years. As a result, the Fund currently has more than three times as many retirees as active members — so, far fewer contributions are coming in than benefits being paid out."
There once was 4 active paying for 1 retiree in the fund....now it is 1 active paying for 5 retirees....KK[/QUOTE]
I dont refute that fact KK.However it wasn't to many years ago.That the fund fired it's investment management company.Because as the fund administrators said..The investment company lost their money.So a new one was hired.Then the recession.Then the merge of Yellow and Roadway.Then the pay cuts.As a tag along on the last 5% giveback.We were told that YRCW could no longer pay the full contractual pension payments.The union administration placed a new account for the 25% pension payment.Of which YRCW agreed to.Then I believe a couple more cycles of recessions.Then the UPS opt out.Then around 2008.The stock market exploded to record numbers.As one retiree told me.He had called CSPF.A year or so ago.Was told by a CSPF employee.That there wasn't nothing to worry about.Because of the stock market being blistering hot in record territory.That the fund was gaining quite a bit.So what happened?? The fund calls it a rescue plan.Retirees are on the cusp of a possible 30% cut in their fixed income.All fingers are pointing at us to take it in the britches.Without any inquiry or investigation into the anatomy of this so called failing fund? The only thing shielding the funds administrators is the crominibus law on pension reform.Of which this is called a bailout for the adminstrators.Doesnt seem to be anyone being held accountable for losing this Pension funds money.Nothing is going to happen to the administrator's salary."if something isn't done by 2026 the fund COULD go insolvent.They are crying wolf too soon and they have this 30% maximum deduction backing them up.I do understand the ratios of withdrawals to incoming revenues.This seems too easy of a cop out
We know the fund is unsustainable ,and the contributions the remaining companies pay for retirees who never worked them limits the remaining workforces contract.I do have to agree with bigtruk on the investigation of the funds.6 billion deposited by ups is a lot of jack and I don't trust any of them.
Canadian Flyer
They Call Me CF, Eh
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All I can say is that I wish those of you in the CSPF luck. It's wrong that it's come to the point it has.
I dont refute that fact KK.However it wasn't to many years ago.That the fund fired it's investment management company.Because as the fund administrators said..The investment company lost their money.So a new one was hired.Then the recession.Then the merge of Yellow and Roadway.Then the pay cuts.As a tag along on the last 5% giveback.We were told that YRCW could no longer pay the full contractual pension payments.The union administration placed a new account for the 25% pension payment.Of which YRCW agreed to.Then I believe a couple more cycles of recessions.Then the UPS opt out.Then around 2008.The stock market exploded to record numbers.As one retiree told me.He had called CSPF.A year or so ago.Was told by a CSPF employee.That there wasn't nothing to worry about.Because of the stock market being blistering hot in record territory.That the fund was gaining quite a bit.So what happened?? The fund calls it a rescue plan.Retirees are on the cusp of a possible 30% cut in their fixed income.All fingers are pointing at us to take it in the britches.Without any inquiry or investigation into the anatomy of this so called failing fund? The only thing shielding the funds administrators is the crominibus law on pension reform.Of which this is called a bailout for the adminstrators.Doesnt seem to be anyone being held accountable for losing this Pension funds money.Nothing is going to happen to the administrator's salary."if something isn't done by 2026 the fund COULD go insolvent.They are crying wolf too soon and they have this 30% maximum deduction backing them up.I do understand the ratios of withdrawals to incoming revenues.This seems too easy of a cop out[/QUOTE]
Huh? Huh . Huh.
imported_pamlico
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I dont refute that fact KK.However it wasn't to many years ago.That the fund fired it's investment management company.Because as the fund administrators said..The investment company lost their money.So a new one was hired.Then the recession.Then the merge of Yellow and Roadway.Then the pay cuts.As a tag along on the last 5% giveback.We were told that YRCW could no longer pay the full contractual pension payments.The union administration placed a new account for the 25% pension payment.Of which YRCW agreed to.Then I believe a couple more cycles of recessions.Then the UPS opt out.Then around 2008.The stock market exploded to record numbers.As one retiree told me.He had called CSPF.A year or so ago.Was told by a CSPF employee.That there wasn't nothing to worry about.Because of the stock market being blistering hot in record territory.That the fund was gaining quite a bit.So what happened?? The fund calls it a rescue plan.Retirees are on the cusp of a possible 30% cut in their fixed income.All fingers are pointing at us to take it in the britches.Without any inquiry or investigation into the anatomy of this so called failing fund? The only thing shielding the funds administrators is the crominibus law on pension reform.Of which this is called a bailout for the adminstrators.Doesnt seem to be anyone being held accountable for losing this Pension funds money.Nothing is going to happen to the administrator's salary."if something isn't done by 2026 the fund COULD go insolvent.They are crying wolf too soon and they have this 30% maximum deduction backing them up.I do understand the ratios of withdrawals to incoming revenues.This seems too easy of a cop out[/QUOTE]!
It is true there was once 4 actives for 1 retiree. In 1980! What is missing here that has not been told is that that payouts have exceeded employer contributions since 1984. 31 years ago! This is hardly something new. Every time Central States begins their blitz concerning facts and figures this is always the first one they use. So for 31 years CS has relied on investment income to pay the benefits/expenses. In good times, CS could take the increasing contributions from the employers, invest them, and do quite well. With the 2 major stock market declines the principle CS had to work with took a beating. This, naturally, drove down investment income which CS relies on. Remember, without investment income CS dies. So like it or not we are dependent on Wall Street for better or worse! With the loss of more than 600 trucking companies that once belonged to CS since 1980 the required contributions that are need to invest have been lost. So that brings us to April 2016. I think we can all agree that the investment income is need to keep CS alive.The only way, in my opinion, to keep CS alive will be a combination of benefit adjustments down to the level where investment income + employer contributions will level out. An increase in contribution levels from employers will also be needed. I look to see a new hybrid model of a current employee retirement plan where your pension will be based on a more conservative amount of guaranteed return with the employee reaping the rewards of good years and sharing the loss in the bad years. Will the change happen this year. Don't know. Already this type of plan is being pushed in Congress and time will tell. More later.
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It is hard for me to believe that this fund was managed correctly as the Western Conference has faced the same problems Central States has faced. Yet the Western Fund has overcame these problems and prospered. How can it be anything but bad Management at the control of the Fund and it's decisions???
One of the big difference between Western and Central was through the years Western received pension payments on UPS parcel part time employees. Central States did not. Also, a third party always administered Western vs the Teamster administered Central States. Or so I've been told.
30 percent? Maybe. Maybe if you retired from ABF, YRC or some other employer who still contributes to the Fund. If however, your employer closed without paying their withdrawal assessment your reduction will be closer to 60 percent. Remember the cuts will be applied in three tiers. The first tier is applied to those "orphans" whose employers did not pay their withdrawal assessment. The law is clear. It requires that the reduction must be made to 110 percent of the PBCG insured rates for the first tier before anyone in the second tier will be cut. So those like me will see a $2800.00 monthly pension reduced to $1100.00 per month before the cuts move to the second tier. Only after those like me have taken the maximum cut will those in the second tier be cut. Since YRC and ABF still contribute albeit at different rates the real guessing game is how much will those retirees be cut. It will also be interesting to see how the retirement benefits for those still working and contributing will be affected.
Yrcf didn't contribute for 18 months and now only contributes 25% ,ABF sounds like the safest one.
my guess is eventually a 100% cut. It means that a 45 yr old on a dock with 20 years PD, will get zero in 20 years for 40 years @ age 65.they waited too long to cut. But big truck says no hurry.
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Next contract, if it comes to pass, will surely present 401-k scenarios for all conferences. Not as an option. By then, most if not all that are pension eligible will have retired, died on the job or will not be affected by the change. It's all about attrition.