Central States Fall

Link: https://burypensions.wordpress.com/2022/05/09/central-states-fall/



All 1,298 pages of the Central States, Southeast and Southwest Areas Pension Fund bailout application is on the SFA website but, for me, it is these two pages that tell the tale of the fall of this and many other union pension plans.


Funded ratio: 21.91%

Unfunded Liabilities as of 1/1/20: $43,878,930,013

Asset Value (Market) as of 12/31/20: $10,409,490,502

Contributions 2020 (MB): $662,009,633

Contributions 2020 (H): $406,600,320

Payouts 2020: $2,842,184,040

Expenses 2019: $53,552,2071

Author(s): John Bury

Publication Date: 9 May 2022

Publication Site: burypensions

Breaking News: Central States Filed

Link: https://burypensions.wordpress.com/2022/04/29/breaking-news-central-states-filed/



The first 34 plans that filed requested a total $8.4 billion in bailout money from the PBGC Special Financial Assistance program for troubled multiemployer plans. No press release but the PBGC weekend update showed one new plan – the Central States, Southeast & Southwest Areas Pension Plan with 364,908 participants which is asking for $35 billion dollars.

Author(s): John Bury

Publication Date: 29 Apr 2022

Publication Site: burypensions

5500 – Central States – 2020




We had some 5500 history in an earlier blog through 2016. This is where the plan was last year based on their 5500 filing for 2020:

Plan Name: Central States, Southeast & Southwest Areas Pension Plan

EIN/PN: 36-6044243/001

Total participants @ 12/31/20: 364,908 including:

Retirees: 191,550

Separated but entitled to benefits: 121,667

Still working: 51,691


Funded ratio: 21.91%

Author(s): John Bury

Publication Date: 15 Oct 2021

Publication Site: Burypensions

Democrats saved union pensions after Hoffa’s long campaign

Link: https://www.nbcnews.com/politics/joe-biden/democrats-saved-union-pensions-after-hoffa-s-long-campaign-n1261125


This account of the Teamsters’ drive to save retirement plans for millions of pensioners is drawn from interviews with several of the union’s officials, congressional sources and the public record. It begins with one Hoffa, the late Teamsters chief James R. Hoffa, and the Central States pension fund he started. And it ends with a yearslong campaign by his son, James P. Hoffa, to work the levers of influence in Washington to salvage the retirement money of union members.

Every Republican voted against the Covid-19 relief measure, and many of them specifically targeted the pension legislation for derision because they said it was an expensive gift from Democratic leaders to labor allies that would be funded by taxpayers.

“Americans know this bill will benefit states and unions that have been poorly mismanaged,” Rep. Lauren Boebert, R-Colo., said on the House floor.

Author(s): Jonathan Allen

Publication Date: 16 March 2021

Publication Site: NBC News

COVID relief bill could save distressed union pensions


Congress is working on a lengthy bill for further COVID relief. One small portion of it is modeled on the union-backed Butch Lewis Act, which passed the U.S. House in 2019 but not the U.S. Senate. Butch Lewis would provide loans cash grants to union-sponsored multiemployer pension plans that are otherwise headed toward insolvency.

About one in 10 multi-employer pension plans are in that situation thanks to stock market losses and declining numbers of active employees in the plans, and the wellbeing of up to 1.3 million union members and spouses is at stake. Butch Lewis would shore up declining pensions and restore benefits that were cut by some pensions in an effort to forestall insolvency.

If Congress does nothing, the Central States Teamster Pension is expected to run out of money in 2025. That would lead the Pension Benefit Guaranty Corporation (PBGC) itself to become insolvent. PBGC is a government insurance agency that guarantees pension benefits.

Publication Date: 17 February 2021

Publication Site: nwLaborPress