Joining Central States
The Central States Pension Fund is one of the nation’s largest multiemployer Taft-Hartley defined benefit pension plans. With 360,000 participants, Central States has been a secure retirement choice for Teamster members who participate through a collective bargaining agreement between our union and employer partners.
Established in 1955 to provide a lifetime monthly retirement benefit to Teamster members, Central States has paid $87 billion in benefits to 670,000 retirees and beneficiaries.
Retirement benefits are funded by weekly contributions made by our nearly 1,000 employer partners – negotiated under collective bargaining agreements with the Teamsters union.
Learn More About the Fund
As of January 1, 2023, Central States is 98% funded and is on course to be fully funded in coming years.
Additionally, with an eye on growing the Fund, Central States introduced the New Employer Hybrid Plan in 2011. The Hybrid Plan protects new employers joining the Fund from withdrawal liability.
As of 2023, the New Employer Pool – also known as the Hybrid Plan, is over 140% funded and is expected to never have withdrawal liability in the future.
Today’s Contributions are Tomorrow’s Pensions
Recently there has been a lot of talk about retirement insecurity. In the past few years, it has been widely reported that pensions are “disappearing” and being replaced by retirement savings accounts like 401(k) plans.
However, with the recent economic downturn in 2022, Vanguard reported that in 2022 many 401(k) retirement savings accounts took a big hit, averaging a 20% loss. These losses caused many Americans had to delay their retirement and continue to work.
Central States Pension Fund Secure Investment Strategy
Volatility in investments has been taken out of the equation with 100% of Fund assets being placed in investment-grade fixed-income securities. Regardless of whether the stock market goes up or down, more than 200,000 current retired Teamsters and surviving spouses can count on receiving their monthly retirement checks from Central States because of our conservative investment strategy.
Our named fiduciary, BlackRock, manages the assets of the Pension Fund. BlackRock is responsible for developing and implementing an investment policy, in consultation with Central States’ actuary and trustees, that meets the goals of meeting benefit obligations, remaining solvent indefinitely, and achieving full funding.
New Employer Pool Provides Withdrawal Liability Protections
While Central States is funded 98% overall, the new employer pool under the Hybrid Plan is estimated to be over 140% funded in 2023.
What does this mean for new employers?
Because contributions fully fund new benefit accruals and Pension Fund assets are invested conservatively, an employer can have confidence in the Hybrid Plan staying fully funded and not having the burden of worrying about future withdrawal liability.
New Group Vesting Service Incentives and More
A rewarding retirement doesn’t just happen. Through weekly pension contributions negotiated by the union and paid by the employer, your employees’ hard work is rewarded with a monthly lifetime retirement benefit that they can never outlive.
To assist with getting your longer-tenured employees vested and eligible for benefits sooner, Central States provides special benefit incentives to employees joining the Pension Fund as part of a new group.
