Seriously Underfunded Teamster Pension Funds

[JonFrum]

"Under Federal pension law, if a multiemployer pension plan is determined to be in critical or endangered status, the plan must provide notice of this status to participants, beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation and the Department of Labor. This requirement applies when a plan has funding or liquidity problems, or both, as described in the Federal law. If a plan is in critical status, adjustable benefits may be reduced and no lump sum distributions can be made. Pension plans in critical and endangered status are required to adopt a plan aimed at restoring the financial health of the pension plan."

Critical Status Notices:
Cleveland Bakers and Teamster Pension Fund
http://www.dol.gov/ebsa/pdf/c-notice0420080009.pdf

International Brotherhood of Teamsters Local 210 Pension Plan
http://www.dol.gov/ebsa/pdf/c-notice0720080032.pdf

International Brotherhood of Teamsters Local 469 Pension Fund
http://www.dol.gov/ebsa/pdf/c-notice0720080015.pdf

International Brotherhood of Teamsters Local 575 Pension Fund
http://www.dol.gov/ebsa/pdf/c-notice0720080011.pdf

International Brotherhood of Teamsters Local 731 Textile Maintenance and Laundry Craft Pension Fund
http://www.dol.gov/ebsa/pdf/c-notice0720080031.pdf

International Brotherhood of Teamsters Union Local No. 52 Pension Fund
http://www.dol.gov/ebsa/pdf/c-notice0720080013.pdf

Union De Tronquistas De Puerto Rico, Local 901, Pension Plan
http://www.dol.gov/ebsa/pdf/c-notice0520080004.pdf

Endangered Status Notices:
International Brotherhood of Teamsters Local 705 Pension Plan
http://www.dol.gov/ebsa/pdf/e-notice0420080010.pdf

International Brotherhood of Teamsters Freight Drivers Local Union No. 557 Pension, Health & Welfare Fund
http://www.dol.gov/ebsa/pdf/e-notice0720080018.pdf

International Brotherhood of Teamsters Joint Council No. 83 of Virginia Pension Plan
http://www.dol.gov/ebsa/pdf/e-notice0720080038.pdf

International Brotherhood of Teamsters Local 177 Multiemployer Retirement Plan
http://www.dol.gov/ebsa/pdf/e-notice0620080002.pdf

International Brotherhood of Teamsters Local 177 - UPS Multi-Employer Retirement Plan
http://www.dol.gov/ebsa/pdf/e-notice0720080049.pdf

International Brotherhood of Teamsters Local 445 Construction Division Pension Fund
http://www.dol.gov/ebsa/pdf/e-notice0720080040.pdf

International Brotherhood of Teamsters Local 731 Excavators and Pavers Pension Trust Fund
http://www.dol.gov/ebsa/pdf/e-notice0720080020.pdf

International Brotherhood of Teamsters Local 804 & International Association of Machinists and Aerospace Workers Local 447 - UPS Multi-Employer Retirement Plan
http://www.dol.gov/ebsa/pdf/e-notice0620080001.pdf

International Brotherhood of Teamsters Local 804 and International Association of Machinists Local 447 - UPS Multi-Employer Retirement Plan
http://www.dol.gov/ebsa/pdf/e-notice0720080048.pdf

International Brotherhood of Teamsters Local 813 and Local 1034 Severance and Retirement Fund
http://www.dol.gov/ebsa/pdf/e-notice0720080033.pdf

International Brotherhood of Teamsters Local 814 Pension Trust Fund
http://www.dol.gov/ebsa/pdf/e-notice0720080039.pdf

International Brotherhood of Teamsters Local 837 Pension Fund
http://www.dol.gov/ebsa/pdf/e-notice0520080001.pdf

International Brotherhood of Teamsters Local No. 436 Building Material Drivers Pension Fund
http://www.dol.gov/ebsa/pdf/e-notice0720080054.pdf

New York State International Brotherhood of Teamsters Conference Pension and Retirement Fund
http://www.dol.gov/ebsa/pdf/e-notice0720080005.pdf

Western Pennsylvania Teamsters and Employers Pension Fund
http://www.dol.gov/ebsa/pdf/e-notice0720080024.pdf

SOURCE: http://www.dol.gov/ebsa/criticalstatusnotices.html
Note: Not all financially troubled Teamster-sponsored funds may be listed here. I only selected funds with "Teamster" in the title.

My New England Teamsters & Trucking Industry Pension Fund isn't listed yet, probably because it's fiscal year doesn't end until Sept 30th. (It's on "life support," though.)

 

[705red]

Well the economy is sure not helping anyone out right now. The ups and more like downs of the market are really hurting everyone, my own 401k statement i have lost more money in the last 19 months that i have put into it.

I believe the cs plan invested alot of ups's buyout into the s&p 500 and this is one that has lost me the most and i didnt have billions in it so i can onle imagine how this could effect pension plans.

Well lets keep our fingers crossed that the economy wakes up and starts heading in the upwards direction real soon.

 

[tieguy]

Well the economy is sure not helping anyone out right now. The ups and more like downs of the market are really hurting everyone, my own 401k statement i have lost more money in the last 19 months that i have put into it.

I believe the cs plan invested alot of ups's buyout into the s&p 500 and this is one that has lost me the most and i didnt have billions in it so i can onle imagine how this could effect pension plans.

Well lets keep our fingers crossed that the economy wakes up and starts heading in the upwards direction real soon.

I move my 401 K out of the S&P and into the bond market/ stable fund options when the market turns sour.

Your pension plan administrators should learn to do the same thing.

 

[browndevil]

I move my 401 K out of the S&P and into the bond market/ stable fund options when the market turns sour.

Your pension plan administrators should learn to do the same thing.

Good move Tie. I do the same and will keep it there until further notice

 

[paidslave]

Good move tie, I did the same thing until further notice! When your McCain gets in office the market should go like gang busters! Pump a couple more trillion for the war, it will be great for the market.....

 

[UpstateNYUPSer(Ret)]

Well the economy is sure not helping anyone out right now. The ups and more like downs of the market are really hurting everyone, my own 401k statement i have lost more money in the last 19 months that i have put into it.

While you may have indeed lost more money than you have put in to your 401k, the money that you are putting in are buying shares at a much lower price, which means you are able to buy more shares and these increased shares will mean increased account balances once the economy turns around. For example, you put $100/week and it all goes to one fund. Shares of that fund used to go for $10/share so you would buy 10 per week ($10*10=$100). Shares of that fund now go for $5/share, which means you can buy 20 shares rather than 10. Economy turns around, shares now worth $10, you have double the number of shares so now have double the balance. This is a very basic example but shows the beauty of "buy low, sell high".

You are right, it is depressing to check your 401k these days, but keep investing with the knowledge that our economy is cyclical in nature and things will turn around.

 

[mrvngrdns]

I move my 401 K out of the S&P and into the bond market/ stable fund options when the market turns sour.

Your pension plan administrators should learn to do the same thing.

So you have the ability to time the market, something that every financial adviser in the world cautions against. Why aren't you a Wall Street guru then? Are you telling everybody that you can predict when the market will turn south, or vault upwards? The main risk of timing the market is missing the period when the market rises rapidly, often just after a down period, when you would most likely be parked in a money market or bond fund. If you miss these crucial up days, your total return will be lower than if you simply had stayed in. Bad advice.

 

[705red]

I move my 401 K out of the S&P and into the bond market/ stable fund options when the market turns sour.

Your pension plan administrators should learn to do the same thing.

Tie im not a finacial advisor and i wont pretend to play one here. While we are able to move from fund to fund our monies they cannot compare to the amount of monies these funds have and the work that making moves like this intakes.

You have to get all of the executives on the funds to agree together to make these moves and im sure this is were alot of the problems lie.

If history is to repeat itself we should see a stronger market and economy around election time.

My wife insisted that i put more into my 401k and less into my ups stock early last year, and wow has that bit me in the . My wife watches oprah and now is a guru on everything. She know believes that she is worth over a $180,000 a year if i were to pay her for being a stay at home mom, laundry, cleaning, cooking, chaffeur, and yes even sex.

I told her that when i start making money in my 401k i might give her a twenty for a wild saturday night! HA

 

[BigBrownSanta]

IMO, it wouldn't hurt if everyone took a yearly refresher course on investing. Investopedia.com has a very good tuturial series for beginners and "experts" alike. For the sake of this argument, diversification, asset allocation and time horizon would be good topics to pay close attention to.

In my case, I have probably another 20 years until I will be at retirement age. I have more time to accept more risk to have a better return. Stocks are the best choice for me at this time.

Tieguy, on the otherhand is probably closer to retirement and is more than likely looking to preserve his principle. He can't afford to have a major downturn affect his investments, so he is hedging by switching to bonds or the Stable Value fund.

No one in this thread has been wrong in their investment advice, you just have to look at where their perspective is coming from.

Asset allocation, according to the financial "gurus", has more to do with higher returns than market timing or buy and hold strategies. Having a good blend of both stocks and bonds that are diversified across many sectors will reduce risk and balance out the dips in the economy.

 

[brownmonster]

My PIN won't work for my 401k so I can't change anything. Probably a good thing. Let er ride!

 

[1989]

Why is it that some of these underfunded pension plans pay out more benefits than a funded one like Western Confrence?

 

[tieguy]

So you have the ability to time the market, something that every financial adviser in the world cautions against. Why aren't you a Wall Street guru then? Are you telling everybody that you can predict when the market will turn south, or vault upwards?.

Picking individual stocks consistently can be tough. But general market conditions don't seem to be that difficult to determine. Most are covered on the news and give you a pretty good indication when things are turning sour or the market is getting better.

the things I should be able to do if I knew as much about finance as those pension plan administrators do.

 

[tieguy]

Tie im not a finacial advisor and i wont pretend to play one here. While we are able to move from fund to fund our monies they cannot compare to the amount of monies these funds have and the work that making moves like this intakes.

You have to get all of the executives on the funds to agree together to make these moves and im sure this is were alot of the problems lie.

Red,

i don't disagree. the other part of the pension plan problem I think is moving that much money quickly. If for instance your plan owns 100,000 shares of abc then its difficult to move those shares during a market decline.

maybe they should not be in the market at all. Most would have done better if they invested in secure investments with conservative returns.

 

[705red]

Investment is nothing more than legal gambling with of course the government getting their cut.

 

[mrvngrdns]

Picking individual stocks consistently can be tough. But general market conditions don't seem to be that difficult to determine. Most are covered on the news and give you a pretty good indication when things are turning sour or the market is getting better.

the things I should be able to do if I knew as much about finance as those pension plan administrators do.

What makes market timing so difficult is the fact that historically, markets have made dramatic up and down moves in relatively short periods of time. Not being "in" during the best days of a market reversal can mean a huge difference in a total return. History is littered with once-hot newsletters, such as the Elliott Wave, who touted themselves as market timers. I personally prefer index funds to funds with active managers, they have lower fees, and generally do just as well. I'm in my 50s, and have become more and more conservative as I age, but in the case of pension funds, it's in their best interest to stay invested to a large degree. I do think that in the past, some pension funds have become greedy during good times, and took risks that they shouldn't have, and got burned, to the detriment of people who had worked their whole lives to earn that pension.

 

[soberups]

Why is it that some of these underfunded pension plans pay out more benefits than a funded one like Western Confrence?

You sort of answered your own question. The Western Conference is fully funded because of the fact that its trustees decided to keep benefits in line with what can sustainably be paid out. The decision made by the trustees to reduce the annual accrual rate during the post 9-11 economic downturn was not a popular one, but it was necessary for the health of the fund.

 

[tieguy]

You sort of answered your own question. The Western Conference is fully funded because of the fact that its trustees decided to keep benefits in line with what can sustainably be paid out. The decision made by the trustees to reduce the annual accrual rate during the post 9-11 economic downturn was not a popular one, but it was necessary for the health of the fund.

thats what the new laws will force all plans to do.

 

[mrvngrdns]

thats what the new laws will force all plans to do.

As well they should. A good law, one that should have been implemented years ago.