Breaking News: Tenth Union Plan Files

On September 27, 2016 trustees of the Automotive Industries Pension Fund out of Alameda, CA became the tenth multiemployer (union) plan to file for benefit cuts under MPRA in an attempt to avoid insolvency.

From their latest 5500 form here is the plan’s relevant data:

Plan Name: Automotive Industries Pension Fund
EIN/PN: 94-1133245/001
Total participants @ 12/31/15: 25,834 including:
Retirees: 11,195
Separated but entitled to benefits: 10,719
Still working: 3,920

Asset Value (Market) @ 1/1/15: 1,302,787,847
Value of liabilities using RPA rate (3.51%) @ 1/1/15: $3,133,469,524 including:
Retirees: $1,691,351,507
Separated but entitled to benefits: $1,026,865,805
Still working: $415,252,212

Funded ratio: 41.58%
Unfunded Liabilities as of 1/1/15: $1,830,681,677

Asset Value (Market) as of 12/31/15: $1,218,051,896
Contributions: $26,949,498
Payouts: $133,827,365
Expenses: $7,862,528

23 responses to this post.

  1. Posted by George on October 22, 2016 at 5:09 am

    Automotive Industries Pension Fund, a so-called multi-employer plan that covers 27,000 retired and working mechanics in the Bay Area,

    http://www.bloomberg.com/news/articles/2008-12-03/the-hidden-pension-threat

    Reply

  2. Posted by Ken Churchill on October 22, 2016 at 12:01 pm

    This is not going to end well for the employees and retirees. Running out of money in 2030, only 14 years from now means the pension fund will have to make drastic reductions to the promises they made to employees and retirees.

    Reply

  3. These private Industry pension failures are the Canary in the coal mine for all public pensions.

    More and more people are beginning to realize that Defined Benefit plans like public pensions are not sustainable, including the private sector which has more or less done away with them. Here is my solution to this looming crisis that is only going to get worse without any correction of course:

    https://drive.google.com/file/d/0B90sU3A85q46OE9BZHJFSWEzbGM/view?usp=drivesdk

    Please help spread the word…

    Reply

  4. Posted by Markymark on October 22, 2016 at 4:19 pm

    Tb-just out of curiosity you say retirees would receive what they put in. What happens to the amount the employer matched? What happens to the 35 years of accrued interest on the contributions and the employer match? Your plan dead ends there.

    Reply

    • Posted by dentss dunnigan on October 22, 2016 at 5:12 pm

      Clawbacks from those that already received a lot more than they and their employer put in …start with the double dippers…

      Reply

    • Posted by TB on October 22, 2016 at 7:21 pm

      Good questions and although not in my right up, the way it would be handled is that the public worker would receive a lump sum amount of what they have contributed over the years and any accrued interest for their portion of the contribution. The employer, ie taxpayers, contributions and any accrued interest is what would flow into the Social Security Reserves. Does that answer your questions?

      Reply

  5. Posted by Anonymous on October 22, 2016 at 6:50 pm

    When COLAs were suspended (eliminated) in 2011 why did NJ allow accrued COLAs to remain intact? Wonder if reducing an already received benefit would have even influenced CC’s NJSC rulings?

    Reply

  6. Posted by George on October 24, 2016 at 11:24 am

    What happened to road carriers local 707 pension? I thought they were going to completely run out of money by now.

    https://burypensions.wordpress.com/2016/07/03/second-union-plan-roadblocked/

    Reply

  7. Posted by Anonymous on October 27, 2016 at 11:05 pm

    First they came for the factory jobs while wages were high and I did not speak out—
Because I didn’t have a factory job.
    Then they came for the pensions and I did not speak out— 
Because I did not have a pension
    Then they came for Social Security and I did not speak out— 
Because I was not yet getting Social Security
    Finally they came for me—my 401K, my IRA/SEP, my 529 and there was no one left to speak for me.

    Reply

  8. Posted by skip3house on October 31, 2016 at 1:29 pm

    Michael P. Donatucci,30, the chief investment officer of Philadelphia’s pension fund, died Friday night of an apparent suicide

    Reply

  9. […] Automotive Industries Pension Fund […]

    Reply

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