Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Union Issues
Question about Central States Funding.
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Retired 2016" data-source="post: 1173742" data-attributes="member: 4579"><p>This is the way I apply simple truck driver logic to Central State Pension Fund.</p><p></p><p> This year the fund, CSPF, broke about even after getting a return of 13%. The winds were blowing in Central States Pension Fund favor, no major trucking companies went out of business and a good return. In a year when the stock market ( assume CSPF tracks the market within 2%) breaks even the 19 Billion fund will lose close to 2.5 billion dollars and be a 16.5 billion dollar fund.</p><p></p><p>In a bad stock market year (10% drop) we could expect the fund to lose the 2.5 billion above with an additional 2 billion dollars for over a four billion dollar drop or a 20% drop in the funds assets. This type of market is typically experienced once every 5 years. </p><p></p><p>Two other factors will speed up this downward spiral: 1. The active participants in the fund are aging and we will see more retirees and less contributors to the fund, 2. a major trucking company going out of business would speed up the retirees going collecting from the fund and putting the fund under additional stress. </p><p></p><p>The one hope is for a hot steady stock market that will delay the collapse of CSPF because the mathematics say that it is just a matter of time before CSPF goes under.</p></blockquote><p></p>
[QUOTE="Retired 2016, post: 1173742, member: 4579"] This is the way I apply simple truck driver logic to Central State Pension Fund. This year the fund, CSPF, broke about even after getting a return of 13%. The winds were blowing in Central States Pension Fund favor, no major trucking companies went out of business and a good return. In a year when the stock market ( assume CSPF tracks the market within 2%) breaks even the 19 Billion fund will lose close to 2.5 billion dollars and be a 16.5 billion dollar fund. In a bad stock market year (10% drop) we could expect the fund to lose the 2.5 billion above with an additional 2 billion dollars for over a four billion dollar drop or a 20% drop in the funds assets. This type of market is typically experienced once every 5 years. Two other factors will speed up this downward spiral: 1. The active participants in the fund are aging and we will see more retirees and less contributors to the fund, 2. a major trucking company going out of business would speed up the retirees going collecting from the fund and putting the fund under additional stress. The one hope is for a hot steady stock market that will delay the collapse of CSPF because the mathematics say that it is just a matter of time before CSPF goes under. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Union Issues
Question about Central States Funding.
Top