Discussion in 'Central States Pension Fund Discussion' started by papajohn, Jun 15, 2016.
Brexit Roils Wall Street, Stocks Extend Global Selloff
A day after flirting with record levels, U.S equity markets on Friday extended a global-market meltdown after the United Kingdom, in a stunning decision, voted to sever its more than 40-year membership in the European Union.
At the closing bell, the Dow Jones Industrial Average plunged 611 points, or 3.39% to 17399. The S&P 500 dropped 76 points, or 3.60% to 2037, while the Nasdaq Composite shed 202 points, or 4.12% to 4707.
Global financial stocks were among those slammed in the widespread selloff amid unprecedented uncertainty about the effects of Britain’s exit from the EU. Citigroup (C), Bank of America (BAC), JPMorgan Chase (JPM), Morgan Stanley (MS), and Goldman Sachs (GS) all skidded more than 6%. The financial sector led Wall Street lower on the session as it dropped 5%.
I see another bailout on the horizon and all that they will have to do is ask and it shall be done.
Will the government ever decide to put their own populations and economies above others? It will only be when the majority of Americans wake up and start demanding them to do so.
Just what will it take for most Americans to wake up and realize that the debts imposed on them by the banks can't be paid and the politicians could care less because their career comes first and foremost?
Force all politicians to do their job, democrats and republicans alike, by holding them personally responsible and get rid of the Fed and start making the Wall Street bankers accountable for their actions before it's too late, if it's not already.
Federal government should bail out Central States Pension Fund
Central States Pension Fund is projected to run out of money in 10 years.
Gregory Van Dress
· By Gregory Van Dress
President Teamsters Local No. 92 Retirees Club
Posted Jun. 25, 2016 at 7:17 AM
Editor's note: Greg Van Dress is a retired Teamsters official who worked for UPS from 1972 to 1994. He then was a business agent for Teamsters Local No. 92, where he also held various positions as an officer in the union. He retired in 2013 as secretary-treasurer of Local 92. Van Dress is related to the editor of The Independent.
Central States Pension Fund is a multi-billion dollar Teamster Taft-Hartley Fund started in 1955.
As a Taft-Hartley Fund, there is an equal number of trustees appointed by employers as well as by the union. Because the employer trustees were often from competing companies, the union effectively controlled the fund.
In the 1970s, when fund monies were invested in Las Vegas casinos with suspected mob connections, the federal government took notice. In the early 1980s, a consent decree was entered into whereby the U.S. Department of Labor would review and approve the fund's operation with oversight from the U.S. Treasury along with a yearly audit approved by a federal court. With all this oversight what could go wrong?
The Fund was started with a "sole purpose" of providing benefits to the participants. After the government takeover, there were billions of investment dollars available for financial advisers and Wall Street bankers, and because the advisers were approved, they could easily invest in whatever improved their personal situation.
Did they? Apparently.
Why would anyone invest in mortgage-backed bonds during the collapse of the housing market? Why would anyone invest in a bank in Iraq during a full-scale war? It certainly does appear that Central States' money was used to bail out Wall Street investors. This all happened with the federal government at the helm and without the approval or even the knowledge of the fund participants.
Worse yet, the fund paid for this investment "advice" to the tune of over $70 million for one year, according to the most recent Form 5500 available.
It gets worse.
The fund's executive director, Thomas Nyhan, spent millions in fund money to help push the Multi-Employer Pension Reform Act through Congress, permitting pension reductions for those already retired. (This was attached to the 2015 budget bill in December 2014 and passed without debate). Retirees received letters from the fund proposing pension cuts last fall. These cuts were not minor; some were up to 70 percent. Nyhan was rewarded with a pay increase of more than $30,000 to his over $600,000 annual salary. Even the fund's executive director had no problem lining his pockets while proposing to gut pensions.
I negotiated numerous work contracts while I was an officer for Teamsters Local 92. Employers had a limit on what they were willing to spend to get a contract but often didn't care how it was divided between wages, health insurance and pensions. Many times my Teamsters would sacrifice wages for an ERISA-protected pension increase. The Multi-Employer Pension Reform Act changed the guarantee — after workers retired.
The Central States Pension Fund (CSPF) has been under unique circumstances. It has been under a Government Consent Decree since 1982. Under the Consent Decree the Department of Labor, and U.S. 8th. District Courts took over CSPF fiduciary duties receiving annual reports since 1982. The Department of Labor, and U.S. 8th. District Court responsibilities are manage, and supervise the fund, to appoint CSPF Wall Street Fiduciaries, CSPF Executive Director’s, and Fund Trustees. Under our Governments supervision, CSPF has lost over 11 Billion Dollars in 2008-2009, and over 20 Billion Dollars since 1982.
December 2014, Congress passed MPRA by slipping it into the must-pass omnibus spending bill. There was no public discussions or debate. MPRA was designed for CSPF and written by RandyG.DeFrehn, Executive Director (NCCMP), and Executive Thomas Nyhan (CSPF-NCCMP) using CSPF Attorneys. CSPF paid Washington Lobbyist over 6 Million Dollars to ensure this bill would pass giving CSPF the ability to cut CSPF Teamsters (Retirees) Pensions. The Employee Retirement Income Security Act of 1974, or ERISA, protects the assets of millions of Americans so that funds placed in retirement plans during their working lives will be there when they retire.
Knowing PBGC is underfunded, and predicted to be insolvent by 2025. Congress rushed to pass MPRA (Holiday Break was upon them, and in a rush to go home). Education and Workforce Committee only made this bill available to the Congress, and Senate to read only hours before the vote. When asked why their explanation was they knew this bill would not pass if it was voted on its own merit.
IMO Congress thought they fixed CSPF, and saved their Government Billions of dollars, saving PBGC from insolvency.
If the CSPF rescue plan would have passed and been implemented. Senior Citizens will lose their financial freedom… their buying power which will affect much more than just the Retiree and his family. Local communities, business, Schools, County, State and the Federal Government will also lose much-needed revenue… They depend on the tax revenue to fund their programs.…. Many will lose their homes, cars, won't be able to pay for their needed insurances, and cover their monthly obligations. They will be forced apply for assistance, costing their local, County, State, and the Federal Government to pick up the tab.
Multi-Employer Pension Funds directly affects over 10 Million people, and indirectly could affect the whole country, causing the next U.S. economic disaster.
Like it or not taxpayers will be affected, and paying for a corrupted Governments Greed. You will not have a choice!!!
There are not enough safeguards to protect Americans from our Government and Wall Street Corruption. Wall Street came after Senior Citizens, and Retirees Pensions first, thinking there will be no resistance.
IMO this is only the first attack from Congress, and Wall Street corruption. Between the Government, and Wall Street bankers they will be coming for your Social Security, 401(K), Roth, or any other retirement investments you may have.
Unfortunately, Congress is more concerned in their own best interest… Not their constituents!!!
Now the only statement I would agree with you on is “It does impact much more than the folks who were CSPF members”.
I have just come up on a statement that I found intriguing, to say the least. This was printed in an article by Richard S. Johnson on June 28th addressing the claim by another author that the Department of Labor put their trustees in place. He stated that the CSPF trustees were not selected by the DOL – they have always been elected by the process specified in the CSPF Trust Agreement.
So I looked up the CSPF Trust Agreement and sure enough, it says that the the Employee Trustee shall be appointed, on behalf and as representative of the Union, by the Central Trustee Appointment Board and the Southern Trustee Appointment Board, each as appointing authority, for terms of office hereinafter specified in this Section 2 of Article II of this Agreement.
Then the Trustees shall appoint an Executive Director, who shall, subject to the directions of the Trustees with respect thereto, be responsible to the Trustees and/or any committee thereof for coordinating the administration of the Fund's assets, office and personnel, for the coordination and administration of accounting and actuarial services, for the preparation of all reports and other documents required to be filed or issued in accordance with law, for the performance of ministerial duties in conformance therewith, and for such other duties duly assigned to him by action of the Trustees. The Executive Director shall be the custodian of the documents and other records of the Fund. To the extent this subsection is contrary to or inconsistent with a Named Fiduciary Agreement, in its description of authority and responsibilities of the Executive Director, this subsection shall be inapplicable.
Here are the current members of the Central Trustee Selection Board and the Southern Trustee Selection Board.
CURRENT MEMBERS OF THE CENTRAL TRUSTEE SELECTION BOARD
(January 1, 2015 to December 31, 2018 term)
CTSB INDIVIDUAL STATE LOCAL UNION
Jesse Castillo Kansas 795 (Wichita)
Daniel W. Avelyn Nebraska 554 (Omaha)
Wayne Perleberg Minnesota 160 (Rochester)
James Kabell Missouri 245 (Springfield)
John T . Coli Illinois 727 (Chicago)
Thomas J . Bennett Wisconsin 200 (Milwaukee)
Robert R . Warnock III Indiana 364 (South Bend)
Greg Nowak Michigan 1038 (Detroit)
Patrick Darrow Ohio 348 (Akron)
Fred Zuckerman Kentucky 89 (Louisville)
Gary Dunham Iowa 238 (Cedar Rapids)
CURRENT MEMBERS OF SOUTHERN TRUSTEE SELECTION BOARD
(January 1, 2015 to December 31, 2018 term)
STSB INDIVIDUAL STATE LOCAL UNION
Kelly Swon Oklahoma 516 (Muskogee)
Brent Taylor Texas 745 (Dallas)
David Negrotto Louisiana 270 (New Orleans)
Timothy Nichols Arkansas 878 (Little Rock)
Ledon Grisham Tennessee 480 (Nashville)
W. C. (Willie) Smith Mississippi 891 (Jackson)
Donnie West Alabama 612 (Birmingham)
Kenneth Wood Florida 79 (Tampa)
Randal l Brown Georgia 728 (Atlanta)
http://www.cspensionrescue.com/wp-content/uploads/2015/05/4th Quarter ISC.pdf
If this is the case, I have been misinformed and inaccurate when it came to my statements of Nyhan's appointment because I was under the impression that Nyhan was appointed by either the Wall Street bankers or the government. I was also surprised to see that Fred Zuckerman was a member of the Central Trustee Selection Board. So now my question is just who appoints the Central Trustee Selection Board and the Southern Trustee Selection Board because I know think that the IBT had a bigger role in this catastrophe than I thought? I do know one thing, we can't rely on anything that these news articles, Wall Street Bankers, Nyhan or the IBT representatives have to say. I also feel that the members have the right to know the whole truth about this process, not opinions based on lies, misconceptions and half-truths which the members have been receiving nothing but. I have always believed that the Executive Director and the trustees should be elected and not appointed and always will. The members should have some voice in those appointments and removals.
Retired Teamsters protest in Omaha over possible pension cuts