Central States Preservation Plan

According to an online report:

A pension fund serving Teamsters members said Thursday it will not issue a new plan to rescue the fund, following the Treasury Department’s rejection of proposed reductions. Thomas Nyhan, executive director of the Central States Pension Fund, said it remains in “critical and declining status” and called for legislation to protect participants’ retirement benefits. Earlier this month, Nyhan predicted insolvency for the fund without legislation, absent another plan.

A condition of that plan for Thomas C. Nyhan may be to keep the highest amount of payouts in place – and not only for retirees.

According to publicly available 5500 filings for the plan these were the reported annual payouts:

to Thomas C. Nyhan.

According to the hundreds of pages of forms Schedule C, investment advisers make the most money followed by lawyers, the actuary (Segal Co.), and then scores of employees.  Were PBGC to take over this plan retirees and other participants would lose a large portion of their promised pensions (since PBGC limits the amount they cover) but these Schedule C people would lose it all.

10 responses to this post.

  1. Posted by Eric on May 21, 2016 at 12:13 am

    John:
    I would have thought that one of the truckers would have flattened this guy by now. Why is he still alive?
    Eric

    Reply

  2. Posted by dentss dunnigan on May 21, 2016 at 6:00 am

    when reality is finally staring you in the face …Central States Fund Proposes 60% Pension Cuts, Treasury Dept Says “Not Enough”; 407,000 Affected….https://mishtalk.com/2016/05/20/rejected-central-states-fund-proposes-60-pension-cuts-treasury-dept-says-not-enough-407000-affected/

    Reply

  3. Posted by MJ on May 21, 2016 at 7:23 am

    I thought the Feds were bailing them out….has that changed? or did they reject the plan only because the proposed cuts were deemed “not enough” to make it solvent? Do nothing and just let it keep going?….is that the plan until the Feds kick in what’s needed to pay everyone?

    Reply

    • Posted by dentss dunnigan on May 21, 2016 at 9:27 am

      The feds don’t bail them out but the(PBGC)fund will help …somewhat. Normally, when a multi-employer fund like Central States runs out of money, a government insurance fund called the Pension Benefit Guaranty Corporation (PBGC) kicks in so that retirees still receive some kind of benefit.
      But that’s not a great solution in this case. For one thing, the amount is smaller than what pensioners would have received under the Central States reduction plan, and is based on the number of years a retiree worked. A retiree would receive a maximum $35.75 a month for each year worked, according to the fund’s website. (That amounts to $1,072.50 a month for retiree who worked 30 years.)

      Reply

      • Posted by MJ on May 22, 2016 at 3:40 pm

        dentss I am aware of the PBGC but it was my understanding that they were too broke to cover any of the multi employer plan insolvencies…….maybe I should have asked if to do nothing to help salvage what left of the plans they will instead wait until the Fed bails out the PBGC?

        Reply

  4. Posted by Javagold on May 21, 2016 at 1:27 pm

    Sweet. Pass the popcorn !!!!

    Reply

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