Central States Pension Fund is now 97.5% funded (2024)

FAQs

Central States Pension Fund is now 97.5% funded? ›

With the receipt of the SFA, the Plan projects that its Funded Percentage as of January 1, 2023, counting the SFA asset receivable would be approximately 97.5%. Further, the Plan projects that it will no longer become insolvent, but instead will be funded well into the future.

LEARN MORE ABOUT THE FUND

As of 2023, Central States is 95% funded with a highly conservative investment strategy to reach full funding in coming years.

The Central States, Southeast and Southwest Areas Pension Plan (Central States) has entered into a civil settlement agreement pursuant to which it has agreed to repay more than $126.5 million in excess funds that it received from the Pension Benefit Guaranty Corporation (PBGC) in connection with the PBGC's Special ...

The PBGC has approved approximately $35.8 billion in SFA, which the Fund received on January 12, 2023. The SFA funding will allow the Central States Pension Fund to avoid insolvency in 2025 and to make a full recovery – reaching full funding over time.

Funded status is the financial status of a pension plan. Funded status is measured by subtracting pension fund obligations from assets. If the funded status of the plan falls below a certain level, the employer may be required to make additional contributions to the plan to bring the funding level back in line.

The Form 5500 is the annual report that plans must file every year with the Department of Labor, IRS and Pension Benefit Guaranty Corporation. The form provides useful information about the plan, including the plan's funding information. You can determine your plan's funding status from the Form 5500.

Today, the Central States Pension Fund has more than 1,000 contributing employers representing approximately 45,000 active participants in a variety of industries, including trucking, car haul, warehouse, construction, food processing, dairy and grocery trucking, allowing participants portability in moving to other ...

Established in 1955 to provide lifetime monthly retirement benefits to Teamsters in the trucking industry, Central States Pension Fund has paid over $85 billion in lifetime retirement benefits.

I retired from Yellow and drawing my pension. Will my pension be affected due to Yellow ceasing operations? No. Your pension benefit will remain unaffected.

Normal retirement age is 65, however, you may be able to draw your pension benefit at a reduced amount as early as age of 57. The following information is only a summary. Full plan details and rules are available in your Summary Plan Description (SPD) (Forms and Documents or Your Member Dashboard).

Why did pension funds go away? ›

In the 1980s, the United States started to phase out pensions as a result of new regulations from the Internal Revenue Service. This was sparked by a provision in the 1978 Revenue Act. Act that permitted employees to use pre-tax funds for voluntary contributions towards retirement plans.

However, please contact us at 1-800-323-5000 to advise us of your correct address. I believe that the amounts reported on my Central States issued Form 1099-R are incorrect.

However, some states carry a larger share of pension unfunded liabilities (or pension debt) than others. California, Illinois, Texas, and New Jersey have the highest levels of unfunded liabilities in the United States by dollar value.

✓ If the assets equal or exceed the liabilities, the plan is considered to be fully funded. ✓ If the assets are less than the accrued liabilities, then the plan has what is called an unfunded accrued liability. Underfunding does not mean the plan is unable to meet its current obligations.

Funded status. In the context of pension funds and/or insurance, funded status is the amount by which a pension plan's assets exceed the projected benefit obligations that will have to be paid in the future.

More In Help. If you receive retirement benefits in the form of pension or annuity payments from a qualified employer retirement plan, all or some portion of the amounts you receive may be taxable unless the payment is a qualified distribution from a designated Roth account.

What Is Fully Funded? Fully funded is a description of a pension plan that has sufficient assets to provide for all the accrued benefits it owes and can thus meet its future obligations.

As a Scheme member, you pay contributions to the LGPS. Your employer pays the balance of the cost of providing your pension benefits. Employees contribute roughly one third of the Scheme's costs and employers pay the rest.