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"Could you please explain how the central states fund is doing? How much money is left? Who's hand is in the cookie jar?"

Thanks
3rd Floor


If you have any questions about the finances of the Teamsters Central States Pension Fund, I would recommend that you read the quarterly reports of the Independent Special Counsel that monitors the fund’s activities under the Fitzimmons consent decree. Here’s a link for the most recent report:
https://www.centralstatesfunds.org/CSF/Pdf/Arbitration_Letters/6-1-2009-1st2009.pdf

On page 4 of this report, the independent special counsel noted that the “…vast majority of the Fund’s active members were covered by collective bargaining agreements that have come into compliance with the Fund’s rehabilitation plan. Almost all of the compliant employers and bargaining units have agreed to adopt the rehabilitation plan’s Primary Schedule (generally requiring 7-8%annual contribution increases for five years and maintaining current benefit levels.)

On page 5, he notes that, “Although it thus appears the Pension Fund has reported progress in securing increased employer contributions and controlling benefits as required of “critical status” plans under the PPA, (the Pension Protection Act of 2006) the financial information presented below also makes clear that the Fund has suffered serious investment losses in the general stock market and economic downturn that occurred during 2008 and the first quarter of 2009.”

Finally, the response to your question is on page 8: “The financial report prepared by Fund staff for the three months ending March 31, 2009 shows net assets as of that date of $15,664,384,000.

It is clear to anybody who doesn’t have an ax to grind that there is no criminal “hand is in the cookie jar.” The CSPF is certainly in financial trouble, like many multi-employer Taft-Hartley benefit funds. But the trustees who direct its investments are complying with all legal requirements to protect the pensions of workers.

THE FEDEX WATCH DOGS