Central States’ 2018 Annual Funding Notice: Pension Plan 27.2% Funded & Expected to Become Insolvent in 2025

| May 2, 2019

The Central States Pension Fund has mailed two notices to all Plan participants and beneficiaries; the 2019 Notice of Critical and Declining Status and the 2018 Annual Funding Notice.  If you are a Plan participant or beneficiary and have not yet received your notices, each may be viewed by clicking below:

Central States 2019 Notice of Critical and Declining Status
Central States 2018 Annual Funding Notice

According to the Plan’s Annual Funding Notice, Central States’ Funding Percentage has dropped more than 10% from 2017 to 2018 and now sits at an all-time low of 27.2%.  In other words, the Central States Pension Plan has only $0.27 to pay every $1.00 of its current and pending pension obligations.  This decline is more than double that of the previous year.

In a letter to Local 727, Central States Senior Director Peter Priede attributed this decline to the reduction of the Fund’s investment return assumption from 5.5% to 3.0% and to the $1.8 billion decrease in the Fund’s net assets.

The Central States Annual Funding Notice also indicates that the Pension Plan is expected to become insolvent in 2025.

“The time for ‘wait-and-see’ has passed.  Action must be taken, and it must be taken today, to ensure Teamsters and their families have a retirement they can depend on,” said John Coli, Jr., Secretary-Treasurer of Local 727.  “If we wait any longer for Congress to step in, it will be too late.  We must join together and take decisive steps now.”

Members with questions should contact Local 727 Business Representative Mike DeGard at (847) 696-7500 or [email protected].

All information provided above comes directly from the Central States Pension Fund.  Nothing in this article should be read as the union’s waiver of any legal argument, position or additional grievance. The union does not forfeit its right to make any and all supplemental arguments.

Category: Current Events, Union News

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