In Victory for Teamster Retirees, Central States Pension Fund Awarded $36 Billion (2024)

FAQs

In Victory for Teamster Retirees, Central States Pension Fund Awarded $36 Billion? ›

(WASHINGTON) – Nearly 350,000 Teamster retirees are celebrating today over an announcement that the Central States Pension Fund (CSPF) will be granted $36 billion by the Pension Benefit Guaranty Corporation. The grant ensures they will enjoy their full pension benefits for the rest of their lives.

2023 Funding Level 98.5% Funded

In April 2024, Central States Pension Fund reported that its actuary determined the funding level of the plan to be 98.5% funded as of January 1, 2023, and on track to reach full funding in coming years.

Through weekly pension contributions negotiated by the union and paid by the employer, your employees' hard work is rewarded with a monthly lifetime retirement benefit that they can never outlive.

For many years, the Teamster's Pension Fund trustees have been the subject of allegations of misuse of the Fund's assets.

Because of this important legislation and recent approval for Special Financial Assistance in accordance with ARPA, Central States Pension Fund will avoid insolvency for our participants, many who are on the front line and essential in maintaining the flow of goods throughout the country.

What causes pension funds to drop in value? When global financial markets experience a dip, it affects all types of investments everywhere including pensions. Political and economic uncertainty, disease as well as conflict, affect financial markets and cause them to rise or fall.

It's unlikely pension funds will totally recover until interest rates come down.

The reports show that there are 51,939 active members and 199,349 retirees and survivors receiving pensions. The average monthly benefit paid is $1180.

Normal retirement age is 65, however, you may be able to draw your pension benefit at a reduced amount as early as age of 57. The following information is only a summary. Full plan details and rules are available in your Summary Plan Description (SPD) (Forms and Documents or Your Member Dashboard).

One of these plans is the California Public Employees' Retirement System (CalPERS), which is the largest public pension plan in the nation as measured by both assets and liabilities.

What is the richest pension fund in the world? ›

The Government Pension Investment Fund of Japan (GPIF) remains the largest pension fund, and tops the table with assets of 1.4 trillion dollars. It has held the top spot since 2002. Meanwhile, the Employees' Provident Fund of India joins as the only new participant among the top 20 funds of 2022.

No.

A company's pension finances are separate from its own finances. That means a company can be bankrupt but still have an adequately funded pension, or it can be doing great and have an underfunded pension. This separation also means that creditors can't claim a bankrupt company's pension assets.

Rebuilding the strength and power of the Teamsters also allowed us to establish a dedicated strike fund. Those reforms have kept our union financially strong. We're proud to say that as of Dec. 31, 2020, our net assets were $475.9 million, of which $289.5 million were in the Strike and Defense Fund.

Lump-Sum Death Benefit

This benefit is payable if a member meets certain service and benefit class requirements, and your death occurs within a specified timeframe from when last working for a contributing employer.

Prior to enactment of ARP, the Multiemployer Program was projected to run out of money in FY 2026. ARP extends the solvency of the Multiemployer Program — the new projections show a median projected insolvency date beyond 2063, the final year of the projection period.

On June 29, 2021, the Pension Plan's actuaries certified to the U.S. Department of Treasury and the Board of Trustees that the Plan is in critical status, but not critical and declining status, for the Plan Year beginning April 1, 2021.

The Central States fund is one of the country's largest multiemployer funds, and its application for help included 360,000 people, according to the federal government. About 40,000 workers and retirees in Ohio were among those helped by the bailout.

The increase is based on the September to September change in the Consumer Prices Index (CPI). The CPI increase for the year up to September 2023 was 6.7%. This means active pension accounts, deferred pensions and pensions in payment in the LGPS will increase by 6.7% in April 2024.