Teamsters’ pension still losing more than $2 billion per year.
The sinking ship of the underfunded pension world (known as the Teamsters’ Central States Pension Plan) continued on its “downward trajectory,” according to a report by the Teamsters for a Democratic Union.
The fund is on a downward trajectory primarily due to the disastrous ratio of 59,234 active participants, while paying benefits to 204,115 retirees and surviving spouses. This means the fund must pay out $2.8 billion in benefits in 2016, with expected income from employer contributions of $754 million. Thus the fund must earn $2.0 billion from investments to break even, which represents a 13% return on investment.
The TDU’s report comes on the heels of the Central States Pension Plan’s most recent financial filings (in full below) that reveals the pension lost more than $500 million during its 2016 fiscal year.
- The Teamsters’ Sinking Ship: Central States Pension Fund Is “Headed For Financial Failure…”
- As Teamster Retirees Face Huge Cuts, These Pension Executives Are Raking In Big Bucks