longlunchguy
Runnin on Empty
sorry, boys I gotta get a mouse that doesn't stick when you click it!
Apwa/ Pittsburgh PA
- Thread starter sawdusttv
- Start date
Red,
Do you know this to be fact because as I posted I heard different, and do you know how we can find out for sure?
tieguy
Banned
pretty weak argument Cole.
I've been with this company for over 25 years. I have always heard ups upper management warn everyone about the dangers of multiemployer plans. Unfortunately their warnings came true.
UPS did not pick the pension system at CS the teamsters did. UPS did not endorse multiemployer plans they warned against them. I've heard there may be one ups trustee on the board ( don't know for sure) but that hardly counts as ups sharing in the blame.
In fact if Carey had acted responsibly and discussed the pension issues in good faith we could have fixed these plans in 97. Casting blame on ups for CS when the teamsters created CS and fought to keep it( strike) is a pretty big stretch cole.
tieguy
Banned
Cole , here's a nice little letter from congress in 1985 when they thought they had CS fixed:
REFERENCE: Vol. 131 No. 136
TITLE: ADDITIONAL STATEMENTS;
GAO FINDS TEAMSTERS CENTRAL STATES PENSION FUND HAS IMPROVED MANAGEMENT
SPEAKER: MR. NUNN; MR. ROTH
TEXT:
Text that appears in UPPER CASE identifies statements or insertions which are not spoken by a Member of the Senate on the floor.
MR. NUNN. MR. PRESIDENT, SINCE ITS FORMATION 30 YEARS AGO, THE $5.2 BILLION TEAMSTERS CENTRAL STATES PENSION FUND HAD BEEN PLAGUED BY MISMANAGEMENT AND THE INFLUENCE OF ORGANIZED CRIMINALS.
THE LARGEST OF THE NATION'S MULTIEMPLOYER RETIREMENT PROGRAMS, THE FUND WAS KNOWN AS "THE BANK FOR THE MOB" BECAUSE OF ITS HUNDREDS OF MILLIONS OF DOLLARS IN LOANS TO CASINOS, RESORTS, AND OTHER ENTERPRISES, SEVERAL OF WHICH WERE CONTROLLED BY PERSONS WITH TIES TO ORGANIZED CRIME.
THE FUND WAS AN EMBARRASSMENT TO THE MANY COMPETENTLY AND HONESTLY MANAGED PENSION AND WELFARE BENEFIT PLANS. IT WAS ALSO A SOURCE OF CONCERN TO THE 298,563 ACTIVE PARTICIPANTS AND THE 124,075 RETIREES AND BENEFICIARIES WHOSE ECONOMIC FUTURES AND WELL-BEING DEPENDED ON THE SOLVENCY OF THIS GIANT TRUST. AS RECENTLY AS 1981, FEARS WERE EXPRESSED THAT THE FUND HAD BEEN LOOTED AND THAT IT MIGHT NOT BE ABLE TO MEET ITS LONG-RANGE COMMITMENTS.
HOWEVER, THE FUND'S FUTURE LOOKS MUCH BRIGHTER TODAY. A GENERAL ACCOUNTING OFFICE REPORT INDICATES THE FUND MANAGEMENT HAS IMPROVED.
THE TURNAROUND IN THE FUND'S FORTUNES CAME ABOUT FOR SEVERAL REASONS, ONE OF THE PRINCIPAL ONES BEING SUCCESSFUL APPLICATION OF THE HISTORIC PENSION REFORM LAW OF 1974, ERISA.
WITH PASSAGE OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT, CONGRESS AUTHORIZED THE LABOR DEPARTMENT TO MONITOR THE ACTIVITIES OF PENSION PLANS, TO INTERVENE IF NECESSARY TO PROTECT PLAN ASSETS AND TO WORK WITH THE INTERNAL REVENUE SERVICE AND THE JUSTICE DEPARTMENT IN IDENTIFYING AND CONTROLLING GROSS MISMANAGEMENT AND CRIMINAL EXPLOITATION.
AS CHAIRMAN OF THE SENATE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS IN THE LATE 1970'S AND AS ITS RANKING MINORITY MEMBER SINCE 1981, I STRONGLY RECOMMENDED TO LABOR DEPARTMENT OFFICIALS THAT, USING THE AUTHORITY VESTED IN THEM BY ERISA, THEY ACT PROMPTLY AND FORCEFULLY TO PROTECT FUND ASSETS AND INSTALL HONEST, COMPETENT MANAGEMENT.
THE FIRST YEAR OF ERISA'S LIFE, 1975 COINCIDED WITH GROWING REVELATIONS OF CORRUPT PRACTICES WITHIN THE TEAMSTERS CENTRAL STATES FUND. CONCERN ABOUT THESE PRACTICES WAS EVIDENT AMONG THE PUBLIC AND IN CONGRESS.
RECENTLY RELEASED FROM PRISON FOR CRIMES THAT INCLUDED FRAUD AGAINST THE FUND HE HAD FOUNDED, JIMMY HOFFA WAS KIDNAPPED IN 1975 AND PRESUMED TO HAVE BEEN MURDERED BY ORGANIZED CRIME FIGURES WHO ALLEGEDLY DID NOT WANT HIM TO RETURN TO LEADERSHIP OF THE UNION OR THE FUND.
ALSO IN 1975, FEDERAL PROSECUTORS LOST A MAJOR CASE INVOLVING ALLEGED CONSPIRACY TO DEFRAUD THE FUND OF $4 MILLION IN PART BECAUSE POTENTIAL WITNESSES WERE GUNNED DOWN.
THESE EVENTS, COUPLED WITH A LABOR DEPARTMENT STUDY IN 1975, SHOWED SIGNIFICANT INFLUENCE OF ORGANIZED CRIME IN THE TEAMSTERS FUND, AND CAUSED THE DEPARTMENT TO MOUNT WHAT IT TERMED A FULL-SCALE INVESTIGATION OF THE CENTRAL STATES RETIREMENT TRUST.
MEANWHILE, THE INVESTIGATIONS SUBCOMMITTEE WAS CONSIDERING BEGINNING ITS OWN INQUIRY INTO CORRUPTION IN THE LABOR-MANAGEMENT FIELD, FOCUSING ON PENSION AND WELFARE BENEFIT PLANS. HOWEVER, LABOR DEPARTMENT OFFICIALS ASSURED US IN DECEMBER OF 1975 THAT A SUBCOMMITTEE INVESTIGATION WOULD NOT BE NECESSARY AND THAT THEY WERE INVOKING ERISA FOR THE FIRST TIME AGAINST A MAJOR FUND, THAT OF THE CENTRAL STATES, AND AGAINST OTHER LARGE RETIREMENT AND WELFARE TRUSTS.
UNFORTUNATELY, THE LABOR DEPARTMENT'S INQUIRY GOT OFF TO AN UNCERTAIN START AND NEVER DID GET ON TRACK. PRINCIPAL SHORTCOMINGS IN THE DEPARTMENT'S 7-YEAR EFFORT WERE CITED IN DETAIL IN A 191-PAGE REPORT ISSUED ON AUGUST 3, 1981, BY THE SENATE INVESTIGATIONS SUBCOMMITTEE.
IN ITS REPORT, THE SUBCOMMITTEE STRONGLY RECOMMENDED THAT THE LABOR DEPARTMENT USE ITS ERISA POWERS TO HAVE THE FUND ENTER INTO A CONSENT DECREE WHEREIN THE FUND, WITHOUT ADMITTING GUILT, WOULD AGREE TO A SERIES OF OPERATIONAL AND ADMINISTRATIVE REFORMS UNDER THE SUPERVISION OF A FEDERALCOURT. GAO, WHICH HAD MONITORED THE LABOR DEPARTMENT'S INQUIRY IN COORDINATION WITH THE INVESTIGATIONS SUBCOMMITTEE, MADE THE SAME RECOMMENDATION.
THE FOLLOWING YEAR, ON SEPTEMBER 22, 1982, THE LABOR DEPARTMENT DID ENTER A CONSENT DECREE WITH THE FUND WHICH, UNDER THE SUPERVISION OF A FEDERAL COURT IN CHICAGO, CONTAINED MOST OF THE SAFEGUARDS THAT THE GOVERNMENT SET OUT TO ACHIEVE IN 1975, INCLUDING AN AGREEMENT BY THE TRUSTEES OF THE FUND: FIRST, TO OPERATE THE PENSION PLAN IN COMPLIANCE WITH ERISA; SECOND, TO CONTINUE TO USE A "NAMED FIDUCIARY WHO IS ALSO INDEPENDENT ASSET MANAGER"; THIRD, TO REMOVE TRUSTEES AND EMPLOYEES IF THEY ARE CONVICTED OF EMBEZZLEMENT AND CERTAIN OTHER CRIMES; AND FOURTH, TO PROVIDE FOR THE APPOINTMENT BY THE COURT OF AN INDEPENDENT SPECIAL COUNSEL WITH FULL AUTHORITY TO EXAMINE THE FUND'S FUTURE ACTIVITIES AND REPORT ON COMPLIANCE OF THE TRUSTEES WITH THE TERMS OF THE CONSENT DECREE.
THE GAO REPORT, ENTITLED "THE DEPARTMENT OF LABOR'S OVERSIGHT OF THE MANAGEMENT OF THE TEAMSTERS CENTRAL STATES PENSION AND HEALTH AND WELFARE FUNDS," INDICATES THAT THE FUND AND ITS TRUSTEES ARE COMPLYING WITH THE TERMS OF THE CONSENT DECREE; HAVE INSTITUTED, OR ARE INSTITUTING, MOST OF THE REFORMS CALLED FOR IN THE CONSENT DECREE; AND ARE COOPERATING WITH THE OPERATION OF THE OUTSIDE INDEPENDENT ASSET MANAGER.
FROM INFORMATION PROVIDED BY GAO, THEN, WE CAN NOW BE MORE HOPEFUL THAT THE FUND HAS TAKEN A MAJOR STEP TOWARD BEING MANAGED COMPETENTLY AND ACCORDING TO ESTABLISHED PROCEDURES.
THIS IS A TRIBUTE TO THE EFFECTIVENESS OF THE ERISA STATUTE AND TO THE WORK OF THE LABOR DEPARTMENT. IN CARRYING OUT AS COMPLEX, PRECEDENT-SETTING AND COMPREHENSIVE A LAW AS ERISA, THE DEPARTMENT INITIALLY MADE SOME MISSTEPS, SOME OF THEM SERIOUS, AS MEMBERS OF THE INVESTIGATION SUBCOMMITTEE HAVE NOTED. HOWEVER, TODAY IT APPEARS THAT THE FUND IS MOVING IN THE RIGHT DIRECTION AND THE INTERESTS OF THE PARTICIPANTS AND BENEFICIARIES ARE BEING PROTECTED.
I WOULD ALSO COMMEND THE NEW MANAGERS OF THE FUND. THEY CAME INTO OFFICE AT A TIME OF GREAT INTERNAL DIFFICULTY AT THE FUND AND APPEAR TO HAVE STEERED A COURSE OF REFORM. THIS IS NOT, HOWEVER, THE END OF THE ROAD. WITH ALL THE PROBLEMS OF THE PAST, THE LABOR DEPARTMENT, THE TRUSTEES, AND THE FUND MANAGERS SHOULD CONTINUE TO REGULARLY MONITOR PROGRESS IN THE FUTURE.
I WOULD LIKE TO ADD MY COMMENDATIONS TO THE GENERAL ACCOUNTING OFFICE. OVER THE LAST 10 YEARS, BEGINNING IN 1975 WHEN THE SUBCOMMITTEE CONSIDERED CONDUCTING ITS OWN INQUIRY INTO PENSION AND WELFARE PLANS, WE HAVE BENEFITED SIGNIFICANTLY FROM THE ASSISTANCE OF GAO AUDITORS AND EXECUTIVES. THE CENTRAL STATES PENSION FUND CASE IS A GOOD ILLUSTRATION OF WHAT AN IMPORTANT RESOURCE GAO IS FOR CONGRESS. ALL TOO OFTEN THE DEDICATED MEN AND WOMEN OF THIS ARM OF THE CONGRESS DO NOT RECEIVE THE CREDIT THEY DESERVE.
MR. ROTH. MR. PRESIDENT, I WOULD LIKE TO JOIN SENATOR NUNN IN COMMENDING THE DEPARTMENT OF LABOR AND THE CURRENT MANAGEMENT OF THE TEAMSTERS CENTRAL STATES PENSION FUND FOR THEIR EFFORTS TO ENSURE THAT THE FUND HAS IMPROVED THE MANAGEMENT OF ITS CONSIDERABLE ASSETS.
THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS HAS HISTORICALLY REVIEWED LABOR RACKETEERING ISSUES, AND DURING THE LAST DECADE, CONSIDERABLE TIME AND EFFORT HAS BEEN DEVOTED TO OVERSIGHT OF THE CENTRAL STATES FUND. THE FINDINGS HAVE NOT ALWAYS BEEN FAVORABLE; IN FACT, THEY HAVE OFTEN BEEN MISERABLE. THEREFORE, THE REPORT ISSUED BY THE GENERAL ACCOUNTING OFFICE ON JULY 18, WHICH CONCLUDES THAT THE FUND HAS IMPROVED ITS MANAGEMENT PROCEDURES, IS PARTICULARLY WELCOME.
OF COURSE, GAO'S REPORT CANNOT BE TAKEN AS A SIGNAL TO ALLOW PRUDENT PRACTICES TO BECOME LAX, GIVEN THE BILLIONS OF DOLLARS CONTRIBUTED IN AND INVESTED BY THE FUND, AND THE HUNDREDS OF THOUSANDS OF PARTICIPANTS WHO RELY ON THE FUND FOR PRESENT AND FUTURE INCOME. FURTHER, THE GAO REPORT ONLY CONCENTRATED ON SEVERAL ITEMS, ALBEIT IMPORTANT ONES: A CIVIL SUIT INITIATED BY THE DEPARTMENT OF LABOR AGAINST FORMER TRUSTEES OF THE FUND, THE ADMINISTRATION OF A CONSENT DECREE BETWEEN DOL AND THE FUND, THE IMPACT OF LOANS MADE BY THE FUND TO THREE HOTELS IN LAS VEGAS, AND THE PROCESSING OF CLAIMS BY THE HEALTH AND WELFARE FUND. PROPER MANAGEMENT OF THE FUND'S ASSETS ENCOMPASSES MORE THAN THESE DISCRETE TOPICS AND REQUIRES CONSTANT VIGILENCE. THE FUND, LIKE OTHER LARGE WELFARE FUNDS, REMAINS A NATURAL TARGET FOR ORGANIZED CRIME AND OTHER UNSCRUPULOUS GROUPS.
I WOULD LIKE TO THANK GAO FOR ITS CONTINUED ASSISTANCE TO THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS, AND TO COMMEND THE DEPARTMENT OF LABOR AND THE NEW MANAGERS OF THE FUND AND EXPRESS THE HOPE THAT RECENT PROGRESS WILL CONTINUE.
131 Cong Rec S 13288 Tuesday, October 15, 1985
Congressional Record -- Senate
Tuesday, October 15, 1985
99th Cong. 1st Sess.
131 Cong Rec S 13288
REFERENCE: Vol. 131 No. 136
TITLE: ADDITIONAL STATEMENTS;
GAO FINDS TEAMSTERS CENTRAL STATES PENSION FUND HAS IMPROVED MANAGEMENT
SPEAKER: MR. NUNN; MR. ROTH
TEXT:
Text that appears in UPPER CASE identifies statements or insertions which are not spoken by a Member of the Senate on the floor.
MR. NUNN. MR. PRESIDENT, SINCE ITS FORMATION 30 YEARS AGO, THE $5.2 BILLION TEAMSTERS CENTRAL STATES PENSION FUND HAD BEEN PLAGUED BY MISMANAGEMENT AND THE INFLUENCE OF ORGANIZED CRIMINALS.
THE LARGEST OF THE NATION'S MULTIEMPLOYER RETIREMENT PROGRAMS, THE FUND WAS KNOWN AS "THE BANK FOR THE MOB" BECAUSE OF ITS HUNDREDS OF MILLIONS OF DOLLARS IN LOANS TO CASINOS, RESORTS, AND OTHER ENTERPRISES, SEVERAL OF WHICH WERE CONTROLLED BY PERSONS WITH TIES TO ORGANIZED CRIME.
THE FUND WAS AN EMBARRASSMENT TO THE MANY COMPETENTLY AND HONESTLY MANAGED PENSION AND WELFARE BENEFIT PLANS. IT WAS ALSO A SOURCE OF CONCERN TO THE 298,563 ACTIVE PARTICIPANTS AND THE 124,075 RETIREES AND BENEFICIARIES WHOSE ECONOMIC FUTURES AND WELL-BEING DEPENDED ON THE SOLVENCY OF THIS GIANT TRUST. AS RECENTLY AS 1981, FEARS WERE EXPRESSED THAT THE FUND HAD BEEN LOOTED AND THAT IT MIGHT NOT BE ABLE TO MEET ITS LONG-RANGE COMMITMENTS.
HOWEVER, THE FUND'S FUTURE LOOKS MUCH BRIGHTER TODAY. A GENERAL ACCOUNTING OFFICE REPORT INDICATES THE FUND MANAGEMENT HAS IMPROVED.
THE TURNAROUND IN THE FUND'S FORTUNES CAME ABOUT FOR SEVERAL REASONS, ONE OF THE PRINCIPAL ONES BEING SUCCESSFUL APPLICATION OF THE HISTORIC PENSION REFORM LAW OF 1974, ERISA.
WITH PASSAGE OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT, CONGRESS AUTHORIZED THE LABOR DEPARTMENT TO MONITOR THE ACTIVITIES OF PENSION PLANS, TO INTERVENE IF NECESSARY TO PROTECT PLAN ASSETS AND TO WORK WITH THE INTERNAL REVENUE SERVICE AND THE JUSTICE DEPARTMENT IN IDENTIFYING AND CONTROLLING GROSS MISMANAGEMENT AND CRIMINAL EXPLOITATION.
AS CHAIRMAN OF THE SENATE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS IN THE LATE 1970'S AND AS ITS RANKING MINORITY MEMBER SINCE 1981, I STRONGLY RECOMMENDED TO LABOR DEPARTMENT OFFICIALS THAT, USING THE AUTHORITY VESTED IN THEM BY ERISA, THEY ACT PROMPTLY AND FORCEFULLY TO PROTECT FUND ASSETS AND INSTALL HONEST, COMPETENT MANAGEMENT.
THE FIRST YEAR OF ERISA'S LIFE, 1975 COINCIDED WITH GROWING REVELATIONS OF CORRUPT PRACTICES WITHIN THE TEAMSTERS CENTRAL STATES FUND. CONCERN ABOUT THESE PRACTICES WAS EVIDENT AMONG THE PUBLIC AND IN CONGRESS.
RECENTLY RELEASED FROM PRISON FOR CRIMES THAT INCLUDED FRAUD AGAINST THE FUND HE HAD FOUNDED, JIMMY HOFFA WAS KIDNAPPED IN 1975 AND PRESUMED TO HAVE BEEN MURDERED BY ORGANIZED CRIME FIGURES WHO ALLEGEDLY DID NOT WANT HIM TO RETURN TO LEADERSHIP OF THE UNION OR THE FUND.
ALSO IN 1975, FEDERAL PROSECUTORS LOST A MAJOR CASE INVOLVING ALLEGED CONSPIRACY TO DEFRAUD THE FUND OF $4 MILLION IN PART BECAUSE POTENTIAL WITNESSES WERE GUNNED DOWN.
THESE EVENTS, COUPLED WITH A LABOR DEPARTMENT STUDY IN 1975, SHOWED SIGNIFICANT INFLUENCE OF ORGANIZED CRIME IN THE TEAMSTERS FUND, AND CAUSED THE DEPARTMENT TO MOUNT WHAT IT TERMED A FULL-SCALE INVESTIGATION OF THE CENTRAL STATES RETIREMENT TRUST.
MEANWHILE, THE INVESTIGATIONS SUBCOMMITTEE WAS CONSIDERING BEGINNING ITS OWN INQUIRY INTO CORRUPTION IN THE LABOR-MANAGEMENT FIELD, FOCUSING ON PENSION AND WELFARE BENEFIT PLANS. HOWEVER, LABOR DEPARTMENT OFFICIALS ASSURED US IN DECEMBER OF 1975 THAT A SUBCOMMITTEE INVESTIGATION WOULD NOT BE NECESSARY AND THAT THEY WERE INVOKING ERISA FOR THE FIRST TIME AGAINST A MAJOR FUND, THAT OF THE CENTRAL STATES, AND AGAINST OTHER LARGE RETIREMENT AND WELFARE TRUSTS.
UNFORTUNATELY, THE LABOR DEPARTMENT'S INQUIRY GOT OFF TO AN UNCERTAIN START AND NEVER DID GET ON TRACK. PRINCIPAL SHORTCOMINGS IN THE DEPARTMENT'S 7-YEAR EFFORT WERE CITED IN DETAIL IN A 191-PAGE REPORT ISSUED ON AUGUST 3, 1981, BY THE SENATE INVESTIGATIONS SUBCOMMITTEE.
IN ITS REPORT, THE SUBCOMMITTEE STRONGLY RECOMMENDED THAT THE LABOR DEPARTMENT USE ITS ERISA POWERS TO HAVE THE FUND ENTER INTO A CONSENT DECREE WHEREIN THE FUND, WITHOUT ADMITTING GUILT, WOULD AGREE TO A SERIES OF OPERATIONAL AND ADMINISTRATIVE REFORMS UNDER THE SUPERVISION OF A FEDERALCOURT. GAO, WHICH HAD MONITORED THE LABOR DEPARTMENT'S INQUIRY IN COORDINATION WITH THE INVESTIGATIONS SUBCOMMITTEE, MADE THE SAME RECOMMENDATION.
THE FOLLOWING YEAR, ON SEPTEMBER 22, 1982, THE LABOR DEPARTMENT DID ENTER A CONSENT DECREE WITH THE FUND WHICH, UNDER THE SUPERVISION OF A FEDERAL COURT IN CHICAGO, CONTAINED MOST OF THE SAFEGUARDS THAT THE GOVERNMENT SET OUT TO ACHIEVE IN 1975, INCLUDING AN AGREEMENT BY THE TRUSTEES OF THE FUND: FIRST, TO OPERATE THE PENSION PLAN IN COMPLIANCE WITH ERISA; SECOND, TO CONTINUE TO USE A "NAMED FIDUCIARY WHO IS ALSO INDEPENDENT ASSET MANAGER"; THIRD, TO REMOVE TRUSTEES AND EMPLOYEES IF THEY ARE CONVICTED OF EMBEZZLEMENT AND CERTAIN OTHER CRIMES; AND FOURTH, TO PROVIDE FOR THE APPOINTMENT BY THE COURT OF AN INDEPENDENT SPECIAL COUNSEL WITH FULL AUTHORITY TO EXAMINE THE FUND'S FUTURE ACTIVITIES AND REPORT ON COMPLIANCE OF THE TRUSTEES WITH THE TERMS OF THE CONSENT DECREE.
THE GAO REPORT, ENTITLED "THE DEPARTMENT OF LABOR'S OVERSIGHT OF THE MANAGEMENT OF THE TEAMSTERS CENTRAL STATES PENSION AND HEALTH AND WELFARE FUNDS," INDICATES THAT THE FUND AND ITS TRUSTEES ARE COMPLYING WITH THE TERMS OF THE CONSENT DECREE; HAVE INSTITUTED, OR ARE INSTITUTING, MOST OF THE REFORMS CALLED FOR IN THE CONSENT DECREE; AND ARE COOPERATING WITH THE OPERATION OF THE OUTSIDE INDEPENDENT ASSET MANAGER.
FROM INFORMATION PROVIDED BY GAO, THEN, WE CAN NOW BE MORE HOPEFUL THAT THE FUND HAS TAKEN A MAJOR STEP TOWARD BEING MANAGED COMPETENTLY AND ACCORDING TO ESTABLISHED PROCEDURES.
THIS IS A TRIBUTE TO THE EFFECTIVENESS OF THE ERISA STATUTE AND TO THE WORK OF THE LABOR DEPARTMENT. IN CARRYING OUT AS COMPLEX, PRECEDENT-SETTING AND COMPREHENSIVE A LAW AS ERISA, THE DEPARTMENT INITIALLY MADE SOME MISSTEPS, SOME OF THEM SERIOUS, AS MEMBERS OF THE INVESTIGATION SUBCOMMITTEE HAVE NOTED. HOWEVER, TODAY IT APPEARS THAT THE FUND IS MOVING IN THE RIGHT DIRECTION AND THE INTERESTS OF THE PARTICIPANTS AND BENEFICIARIES ARE BEING PROTECTED.
I WOULD ALSO COMMEND THE NEW MANAGERS OF THE FUND. THEY CAME INTO OFFICE AT A TIME OF GREAT INTERNAL DIFFICULTY AT THE FUND AND APPEAR TO HAVE STEERED A COURSE OF REFORM. THIS IS NOT, HOWEVER, THE END OF THE ROAD. WITH ALL THE PROBLEMS OF THE PAST, THE LABOR DEPARTMENT, THE TRUSTEES, AND THE FUND MANAGERS SHOULD CONTINUE TO REGULARLY MONITOR PROGRESS IN THE FUTURE.
I WOULD LIKE TO ADD MY COMMENDATIONS TO THE GENERAL ACCOUNTING OFFICE. OVER THE LAST 10 YEARS, BEGINNING IN 1975 WHEN THE SUBCOMMITTEE CONSIDERED CONDUCTING ITS OWN INQUIRY INTO PENSION AND WELFARE PLANS, WE HAVE BENEFITED SIGNIFICANTLY FROM THE ASSISTANCE OF GAO AUDITORS AND EXECUTIVES. THE CENTRAL STATES PENSION FUND CASE IS A GOOD ILLUSTRATION OF WHAT AN IMPORTANT RESOURCE GAO IS FOR CONGRESS. ALL TOO OFTEN THE DEDICATED MEN AND WOMEN OF THIS ARM OF THE CONGRESS DO NOT RECEIVE THE CREDIT THEY DESERVE.
MR. ROTH. MR. PRESIDENT, I WOULD LIKE TO JOIN SENATOR NUNN IN COMMENDING THE DEPARTMENT OF LABOR AND THE CURRENT MANAGEMENT OF THE TEAMSTERS CENTRAL STATES PENSION FUND FOR THEIR EFFORTS TO ENSURE THAT THE FUND HAS IMPROVED THE MANAGEMENT OF ITS CONSIDERABLE ASSETS.
THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS HAS HISTORICALLY REVIEWED LABOR RACKETEERING ISSUES, AND DURING THE LAST DECADE, CONSIDERABLE TIME AND EFFORT HAS BEEN DEVOTED TO OVERSIGHT OF THE CENTRAL STATES FUND. THE FINDINGS HAVE NOT ALWAYS BEEN FAVORABLE; IN FACT, THEY HAVE OFTEN BEEN MISERABLE. THEREFORE, THE REPORT ISSUED BY THE GENERAL ACCOUNTING OFFICE ON JULY 18, WHICH CONCLUDES THAT THE FUND HAS IMPROVED ITS MANAGEMENT PROCEDURES, IS PARTICULARLY WELCOME.
OF COURSE, GAO'S REPORT CANNOT BE TAKEN AS A SIGNAL TO ALLOW PRUDENT PRACTICES TO BECOME LAX, GIVEN THE BILLIONS OF DOLLARS CONTRIBUTED IN AND INVESTED BY THE FUND, AND THE HUNDREDS OF THOUSANDS OF PARTICIPANTS WHO RELY ON THE FUND FOR PRESENT AND FUTURE INCOME. FURTHER, THE GAO REPORT ONLY CONCENTRATED ON SEVERAL ITEMS, ALBEIT IMPORTANT ONES: A CIVIL SUIT INITIATED BY THE DEPARTMENT OF LABOR AGAINST FORMER TRUSTEES OF THE FUND, THE ADMINISTRATION OF A CONSENT DECREE BETWEEN DOL AND THE FUND, THE IMPACT OF LOANS MADE BY THE FUND TO THREE HOTELS IN LAS VEGAS, AND THE PROCESSING OF CLAIMS BY THE HEALTH AND WELFARE FUND. PROPER MANAGEMENT OF THE FUND'S ASSETS ENCOMPASSES MORE THAN THESE DISCRETE TOPICS AND REQUIRES CONSTANT VIGILENCE. THE FUND, LIKE OTHER LARGE WELFARE FUNDS, REMAINS A NATURAL TARGET FOR ORGANIZED CRIME AND OTHER UNSCRUPULOUS GROUPS.
I WOULD LIKE TO THANK GAO FOR ITS CONTINUED ASSISTANCE TO THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS, AND TO COMMEND THE DEPARTMENT OF LABOR AND THE NEW MANAGERS OF THE FUND AND EXPRESS THE HOPE THAT RECENT PROGRESS WILL CONTINUE.
Cole
Well-Known Member
Which portion were you wanting me to see?
I have posted about the corrutption in the past myself, and that was alot, so what specifically were you pointing out there? Obviousley that committee didn't do it's job too well!
I haven't argued against corruption in the past at CS, but even if UPS has 1 trustee, then he reps the company, and therefore the company even if minimally has some blame. I am coming up on 20yrs real soon, and I agree I wish Carey had really brought out the problems at CS, as I really didn't know squat at the time, and it was later when I learned of the corruption that took place at CS etc...in the past.
I assure you I in know way exscuse corruption on behalf of the Teamsters.
Great to see you back Krash! How is everything?
I have posted about the corrutption in the past myself, and that was alot, so what specifically were you pointing out there? Obviousley that committee didn't do it's job too well!
I haven't argued against corruption in the past at CS, but even if UPS has 1 trustee, then he reps the company, and therefore the company even if minimally has some blame. I am coming up on 20yrs real soon, and I agree I wish Carey had really brought out the problems at CS, as I really didn't know squat at the time, and it was later when I learned of the corruption that took place at CS etc...in the past.
I assure you I in know way exscuse corruption on behalf of the Teamsters.
Great to see you back Krash! How is everything?
J
JonFrum
Guest
As I explained months ago, multi-employer pension plans are jointly trusteed by a board, half labor, half management. Usually our plans are half Teamsters Officers, half executives of the major contributing employers. All trustees have a high legal responsibility to act as Fiduciaries, and to make decisions in the sole interest of the participants and beneficiaries.
ALL Contributing Employers, including UPS, sign plan documents agreeing that ALL employer trustees are their representatives and that they ratify ALL legitimate actions taken by ALL the employer trustees, past, and future. The language is also in the UPS Contract, which we all vote on, and UPS agreed to. (Here in the New England Supplement the pension language is in Article 69, and the Health & Welfare language is in Article 68.)
A fiduciary is like a baseball umpire. He is above it all. He not allowed to play favorites. Any suggestion that UPSers would be better off if a UPS guy (or more UPS guys) were on the Board of Trustees is like saying we need an umpire who is a fan of our team so he will throw the game in our favor by making biased calls.
I'm not opposed to a UPSer being on the board. I just think everyone should understand the dishonest motive some people have in proposing it. It really shouldn't matter who an employer trustee works for. He is forbidden by law to show any favoritism. This isn't like Congress, where you're Representative can be expected to favor your district and "bring home the bacon." Fiduciaries are obligated to act in the best interests of all, to follow the "reasonable man" rule, and to act as would an expert in the matters before them.
By the way, can anyone think of a single time UPS shared any useful pension or H & W information with us that they got as a result of being a Contributing Employer or by having a UPS executive on the Board of Trustees? Normally they keep us mushrooms in the dark just like the Teamsters (and now the APWA!!!) UPS has even signed a non-disclosure agreement with Central States! In addition to their usual agreement not to talk about contract negotiations.
P.S.
Why does everything I say seem to go in one ear and out the other? Why is everything endlessly debatable? This trustee issue should have been understood years ago.
ALL Contributing Employers, including UPS, sign plan documents agreeing that ALL employer trustees are their representatives and that they ratify ALL legitimate actions taken by ALL the employer trustees, past, and future. The language is also in the UPS Contract, which we all vote on, and UPS agreed to. (Here in the New England Supplement the pension language is in Article 69, and the Health & Welfare language is in Article 68.)
A fiduciary is like a baseball umpire. He is above it all. He not allowed to play favorites. Any suggestion that UPSers would be better off if a UPS guy (or more UPS guys) were on the Board of Trustees is like saying we need an umpire who is a fan of our team so he will throw the game in our favor by making biased calls.
I'm not opposed to a UPSer being on the board. I just think everyone should understand the dishonest motive some people have in proposing it. It really shouldn't matter who an employer trustee works for. He is forbidden by law to show any favoritism. This isn't like Congress, where you're Representative can be expected to favor your district and "bring home the bacon." Fiduciaries are obligated to act in the best interests of all, to follow the "reasonable man" rule, and to act as would an expert in the matters before them.
By the way, can anyone think of a single time UPS shared any useful pension or H & W information with us that they got as a result of being a Contributing Employer or by having a UPS executive on the Board of Trustees? Normally they keep us mushrooms in the dark just like the Teamsters (and now the APWA!!!) UPS has even signed a non-disclosure agreement with Central States! In addition to their usual agreement not to talk about contract negotiations.
P.S.
Why does everything I say seem to go in one ear and out the other? Why is everything endlessly debatable? This trustee issue should have been understood years ago.
Cole
Well-Known Member
I am trying to process your info as well as the other info Jon, but it's a great deal of info, with high stakes imho. The Trustee issue is inconsequential Mr. Powers. lol
It's understood, but we still have very poor pension plans working for a company we have all helped make highly successful.
There again we still don't have enough specifics.
It's understood, but we still have very poor pension plans working for a company we have all helped make highly successful.
There again we still don't have enough specifics.
tieguy
Banned
ever do a search for information to see who the trustees are? You have to do a little digging to get their names and a lot of digging to find out who they represent. I don't think the plans make it easy for us to understand the trustee issues. Do you realistically think the trustees are going to put the plan above the interests of whom they represent? Every rep will bring some bias into the game. If not bias certainly their perspective as management or union trustees.
Red said its your opinion. If so then it should go in one ear and out the other.
tieguy
Banned
Cole I really wasn't trying to rehash the corruption angle again. I found the letter interesting because it dates problems CS has had all the way back to 75 when I thought their problems were more recent.
705red
Browncafe Steward
So you admit it wasnt all ron careys fault? Thanks for the apology for ron tie, im sure hes got no hard feelings towards you!
J
JonFrum
Guest
Now a days, the Internet makes it very easy to understand this and lots of other issues. Every Plan has its own website and there is an amazing amount of information posted for all to see. Central Staters are especially "lucky" because the size of their fund, and the decades of troubles it has had, means there is lots of coverage of the Fund online and in the press. You not only have the general info of the Central States website, but you also have the Quarterly Reports to Judge Moran which discuss the periodic replacement of one trustee with another. Then there's the Form 990 available free from Guidestar. Of course, as always, one would have to actually go to the site or click on my links to see this information. In addition, the Fund sends information in the mail to your home. Apparently, some people are more intent on endless debate and keeping the waters muddy, than actually getting quickly to the Truth.
tieguy
Banned
tieguy
Banned
I don't remember speed, but nice shot!!!!!
that is the same set up the APWA wants. Pension trustees will be:
X amount of APWA -
X amout of UPS management
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