Retirement Benefits | Central States Pension Fund (2024)

Learn more about your retirement benefits

The Fund provides the different kinds of Retirement Benefits described below. Each benefit has its own rules, and you can only receive one Retirement Benefit from this plan. If you qualify for more than one, you will be paid the highest benefit to which you are entitled. 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).

Contribution-Based Pension

To qualify for this benefit, you must have at least 5 years of Vesting service (10 years of vesting service prior to 1999).

The amount is based on the contributions paid by your employer on your behalf while you were a member of the pension plan, your age, and your years of service.

Contributory Credit Pension

To qualify for this benefit, you must have earned at least 20 years of Contributory Credit (some of which must be before 2004), you must have earned at least 1 week or 5 days of Employer Contributions under Schedule B. To determine whether your employer has submitted contributions under Schedule B, please contact us.

The amount is based on your years of contributory credit, your benefit class, your age, and contributions you earned after 2003.

Twenty-Year Service Pension

To qualify for this benefit, you need at least 20 years of total credit, of which at least 10 years must be Contributory Credit. If you left the Fund before age 50 (if you were under age 50 when you had a One-Year Break - the first year with less than 10 weeks or 37 days or 300 hours of contributions), you need at least 30 years of total credit, of which at least 15 years must be Contributory Credit, unless you met the requirements of the Deferred Pension.

The amount is based on your qualifying age, which is the earlier of your age on your retirement date, or your age on December 31 of the first year in which you have a One-Year Break (the first year with less than 10 weeks or 37 days or 300 hours of contributions).

Early Retirement Pension
If your qualifying age is less than 57, the benefit is called the Early Retirement Pension, and the benefit amount is based on your qualifying age in years and months.

Deferred Pension

A Deferred Pension will allow you to delay your Retirement Benefit to get a higher monthly benefit. Types of Deferred Pensions include the Deferred Pension and Twenty-Year Deferred Pension.

To qualify for a Deferred Pension, you must reach at least age 57 before you have a One-Year Break; and have at least 20 years of credit, of which at least 10 years must be Contributory Credit; or you are at least 50 but less than 57 years of age before you have a One-Year Break, you must have 20 Years of Contributory Credit; or you must have at least 30 years of credit, of which at least 20 years are Contributory Credit.

To qualify for a Twenty-Year Deferred Pension, you must have at least 20 years of Contributory Credit and you must have at least 20 weeks of employer contributions under Schedule B.

The amount is also based on your Benefit Class and your age at retirement.

Partial Pension

The Fund has reciprocal agreements with other Teamster pension plans that allow you to become eligible for certain benefits, even if your credit is split between these plans.

To qualify for this benefit you must have 2* or more years of Contributory Credit with this plan and when the credit you earned with this plan is combined with the credit you earned with the other plan which also agrees to participate in a Partial Pension on your behalf, eligibility for one of the following is established:

- Contributory Credit Pension
- Twenty-Year Service Pension
- Monthly Disability Benefit
- 60-Month Benefit; or
- 50% Surviving Spouse Benefit (based on any Contributory Credit Pension or Twenty-Year Service Pension).

*This plan has reciprocal agreements with some plans under which you may qualify for a Partial Pension with less than two years of credit with this plan.

What is a Partial Pension?
A pension in which each plan you've earned credit with pays a portion of that plan’s benefit based on the credit you earned while covered by that plan. When you retire, you’ll receive separate monthly benefit checks from each plan.

Are You Eligible for a Partial Pension?
To find out if you are eligible for a Partial Pension, complete and submit the proper benefit application. You must file an application with each plan in which you earned credit.

Start the Retirement Benefit Application

Go to the Forms

Retirement Benefits | Central States Pension Fund (2024)

FAQs

Is the Central States Pension Fund a lifetime benefit? ›

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.

Is the Central States Pension Fund safe now? ›

Since 1955, the Central States Pension Fund has paid retirees and beneficiaries all promised benefits. The Central States Pension Fund is now on solid ground as we move over time toward the goal of being fully funded.

What is the retirement age for Central States Pension Fund? ›

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).

What is the average return on a pension fund? ›

At Penfold, our most popular plan has seen an average yearly growth of 4.6% from inception to September 2023. Using a 5% average, a monthly contribution of £250 over 40 years could see your pension grow to nearly £200,000, thanks to the magic of compounding. Remember, in the world of pensions, time is your ally.

How much is a lifetime pension worth? ›

The value of a pension = Annual pension amount divided by a reasonable rate of return multiplied by a percentage probability the pension will be paid until death as promised.

What is a lifetime retirement benefit? ›

A lifetime annuity could serve as a retirement income supplement to Social Security checks, 401(k) retirement plans, company pension funds, etc. Lifetime annuities provide income for as long as you live - even after all the money you contributed is exhausted.

Why is the Central States Pension Fund in trouble? ›

Highlights. For many years, the Teamster's Pension Fund trustees have been the subject of allegations of misuse of the Fund's assets. Therefore, the Department of Labor initiated an investigation of the Fund and, in response to a congressional request, GAO reviewed the Government's investigation.

Has Central States Pension Fund been bailed out? ›

A failing pension fund that received a $35.8 billion federal bailout has returned $126.5 million to the government following a determination that its application for aid included about 3,500 dead people.

What is the status of the Central States fund? ›

It's a rags-to-riches story: the Central States Pension Fund went from 14.5% funded and in critical and declining status to 97.5% funded and in healthy condition.

What happens to my pension after age 75? ›

What happens to your pension when you die over 75. HMRC pension rules confirm that once you reach age 75, your beneficiaries will be taxed after you pass away, and they will start taking benefits from your pension. This will be taxed as income at the beneficiary's marginal tax rate.

Can I retire at 55 with a pension? ›

There's nothing in the retirement rulebook, legal or otherwise, that says you can't retire at 55 years old. In fact, some members of the FIRE (financial independence, retire early) movement aim to retire as early as 40. So it's perfectly legal and possible to retire in your mid-50s if that's your goal.

Do you get a pension at 65 or 70? ›

Your age affects your pension amount:

If you start after age 65, payments will increase by 0.7% each month (or by 8.4% per year), up to a maximum increase of 42% if you start at age 70 (or after).

What is the 70% rule for pension? ›

How much pension do you need to live comfortably? For a quick estimate, try the '50-70' rule. This suggests that you should aim for an annual income that is between 50% and 70% of your working income.

Can I retire on 300k? ›

Let's walk through the scenario. With $300,000 planned for your use as a retiree, a retirement age of 50, and an anticipated life expectancy of 85 years, you need that money to last you 35 years. This should mean that your yearly income is around $8,571, and your monthly payment is around $714.

Is a $500,000 pension good? ›

However, it depends on the kind of monthly income you want in retirement because your lifestyle and individual circumstances will impact your quality of life. If you are a frugal spender, a 500K pension pot will go a long way, and you can have a comfortable retirement.

Are all pensions lifetime benefits? ›

Pension benefits are typically a fixed monthly payment in retirement that is guaranteed for life. Some pension benefits grow with inflation. Other pension benefits can be passed on to a spouse or dependent. But pensions aren't the only financial route to guaranteed lifetime income after you retire.

Are pensions permanent? ›

Once you're eligible and you retire, your benefit is payable for life.

Is a pension annuity for life? ›

What is a Pension Annuity? A pension annuity is a product that converts your pension pot into guaranteed regular income for the rest of your life, no matter how long you live. With a pension annuity, you'll know exactly how much you're getting, come rain or shine.

Do pension plans end? ›

Employers can end a pension plan through a process called "plan termination." There are two ways an employer can terminate its pension plan.

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Foster Heidenreich CPA

Last Updated:

Views: 5857

Rating: 4.6 / 5 (76 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Foster Heidenreich CPA

Birthday: 1995-01-14

Address: 55021 Usha Garden, North Larisa, DE 19209

Phone: +6812240846623

Job: Corporate Healthcare Strategist

Hobby: Singing, Listening to music, Rafting, LARPing, Gardening, Quilting, Rappelling

Introduction: My name is Foster Heidenreich CPA, I am a delightful, quaint, glorious, quaint, faithful, enchanting, fine person who loves writing and wants to share my knowledge and understanding with you.