sthomp2000
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The CSPF rescue plan website has updated. Everyone should take a look as the trustees of the fund want to speed up the process of reducing our pensions to put the cuts into effect in 6 months or less.
Remember that article was written almost 13 years ago!Hmmm stock market declines? That's what was said in that article I read above.The stock market has been in "record" territory for several years now.
An independent analyst is farfrom a forensic audit.I wish we could get organized and do the same thing as Mr. Kelder with the 707 fund.Anyone with any ideas? We could start here on trucking boards with a sign up sheet for those willing to donate.It would be worth it to bust those that have paid unjustifiable fees or stolen from the fund.Remember ups paid 6.1 billion to the fund since these articles.Lets bust their asses together.I guess it's time for another audit since we never got the results of these two from almost 13 years ago?
Taking Action
BY JOHN D. SCHULZ | Dec 15, 2002 7:00PM EST
Copyright 2002, Traffic World, Inc.
Teamsters union President James P. "Jimmy" Hoffa, moving to stem the staggering decline in the value of assets of the Central States Pension Fund, is taking what the union calls the "extraordinary step" of hiring outside consultants to perform a combined independent investment and actuarial evaluation of the fund.
An internal Teamsters document shows the Central States' fund may be as much as $6.9 billion short of its vested benefit levels.
The IBT retained two nationally recognized and respected firms, Independent Fiduciary Services and Watson Wyatt Worldwide, to perform an independent assessment of the asset allocation approach and the actuarial condition of the Central States Pension Fund, the largest of all the Teamsters multiemployer pension funds.
Hoffa recently moved to install Fred Gregare, an IBT at-large vice president, to replace Ray Cash on the 10-member Central States trustee board. Cash recently resigned along with longtime Central States Executive Director Ronald J. Kubalanza, who was replaced late last month by general counsel Thomas Nyhan. Gregare is the well-respected head of Local 75 in Green Bay, Wis., and the IBT dairy division.
The shakeup occurs amid a continuing financial slump in Central States' fund assets. According to Central States' internal documents, the fund suffered a net loss of $1.978 billion last year while the fund suffered a continuing decline in its contribution base and the number of Central States' retirees continued to rise.
The Central States' fund is the largest in the Teamsters. It covers 187,229 active participants and 197,011 retirees. Central States has been hurt by the downturn in the markets with net assets available for benefits dropping to $18.5 billion last year from $20.5 billion in 2000. Vested benefits last year were $25.4 billion, compared with $24.3 billion in 2000.
Long-term trends at Central States are worrisome to Hoffa as well. The fund had unfunded vested benefit liabilities in 2000 of $3.8 billion and $6.9 billion last year.
Rank-and-file Teamsters are fighting what they perceive as a pension "freeze." They are gathering petitions circulated by the Teamster Pension Improvement Committee, which is comprised of both current and retired Teamsters.
Many Teamsters were expecting a pension increase to occur after this summer's contract settlement with United Parcel Service, which is paying increased amounts for fringe benefits. But Central States is choosing to spend most of that contribution to control fast-rising health care costs.
Teamsters for a Democratic Union, the dissident wing of the IBT, claims Central States' pension benefits could be frozen for another six years. TDU says its last benefit increase in pensions was in 1997, meaning that another six-year freeze would mean benefits would be stuck at 1997 levels through 2008.
Under federal law the Teamsters union itself has no control over the management or investment strategy of the fund, which continues to operate under court and government supervision as the result of a 1988 consent decree. Under the terms of the consent decree, the fund's named fiduciaries - who ultimately are responsible for investment strategy and the overall investment program - must be approved by the federal court after appropriate notice to the Department of Labor. The current designated named fiduciaries are J.P. Morgan and Goldman Sachs. Employer and employee trustees are prohibited from making any investment decisions.
The Central States Pension Fund is "cooperating with the review," the union said.
Hoffa said the decision to seek an independent analysis of the fund has been taken, "because we cannot sit on the sidelines while the retirement benefits of our members are undermined by falling financial markets. The International Union must have the information necessary to ensure that we can take whatever action may be necessary to help preserve and protect our members' pension benefits."
Teamsters General Secretary-Treasurer Tom Keegel said the "bad investment climate" along with the bankruptcy of Consolidated Freightways makes it imperative that the union perform its own independent evaluation of the Central States Pension Fund.
Although many pension funds are suffering in the current climate, the Central States Fund suffers from the added handicap that the number of retirees drawing benefits significantly outnumbers the active participants for whom contributions are being made. This makes investment returns particularly critical for Central States and means that the current bear market has hit the fund particularly hard.
"While we cannot tell the federal government, the trustees, or the fund's named fiduciaries what to do, we owe it to our members to fully assess what the real story is," Keegel said.
Hoffa said the IBT will do "everything possible" to get to the bottom of the issues at Central States and provide a clear view of the situation to members.
"The IBT will then be in a better position to consider all appropriate action to preserve the retirement security of our members and their families," Hoffa said.
I'm in $$$ where do I send it
I'm in for a 100$
$100 here