Teamsters Local 805 Pension Fund

Local 805 pension and retirement plan

The Pension Protection Act of 2006 ( "PPA" ) requires the board of trustees of a multiemployer pension plan that has been certified by its actuary as being in critical status ( also known as the "red zone" ) to develop a rehabilitation plan >> full rehabilitation plan summary

Annual funding notice local 805 pension and retirement plan 2008

Dear Local 805 Members:

The Employee Retirement Income Security Act of 1974 requires every employee benefit plan to provide each participant with a Summary Annual Report (SAR).  Enclosed you will find a SAR for the Local 805 Welfare and /or Pension Funds. 

This material is for your information only and does not require any action on your part.  Despite efforts reducing administrative costs and savings associated with changing medical providers, Plan assets were reduced, (as were most other Funds) due in large part to market fluctuations.   We are presently working on methods of improving the financial position of the Funds. >> full summary report

If there are any questions, please contact the Fund Office.

Summary Annual report for Local 805 pension and retirement fund 2008

This is a summary of the annual report for LOCAL 805 PENSION & RETIREMENT FUND,
EIN 13-1917612, Plan Number 001, for the period April 1, 2007 to March 31, 2008. The annual
report has been filed with the Department of Labor, as required under the Employee Retirement
Income Security Act of 1974 (ERISA). >> full summary report

Pension Settlement News

Aug 28, 2006 – Both sets of actuaries completed their evaluations and reports. The Segal Company stated at a meeting open to all Local 805 members and retirees that the fund is healthy and that, although requiring higher employer contributions, it could sustain pension credit accruals. Fund Actuary Neal Savasta stated at the arbitration that at no time did he recommend the accrual rate be dropped to zero, and, in fact, had said that doing so would be unwise.

The union trustees proposed that pension accruals be raised, retroactive to April 15, 2005, to $50. The employer trustees voted against the proposal, resulting in a deadlock. Under the terms of the settlement arbitrator Martin Scheinman was appointed to settle deadlocked issues.

On August 17th arbitration was held and the arbitrator attempted to get the employer trustees to agree to the union proposal with a provision to review the accrual levels next year, after contract negotiations have concluded. The employer trustees refused.

The hearing was granted a continuance until September 7th, at which time the Segal Company will give its testimony. The arbitrator seemed confident that a conclusion would be reached

quickly once the hearings were completed.

Fund News: New Investment Advisor

8/06 – The Trustees of the Welfare and Pension Funds have hired an investment advisor to assist the Funds in improving our investment performance. Following a presentation by our new advisor on August 15th, the trustees are now acting on their recommendations to increase investment returns and reduce fees paid to investment managers.

Fund News: A New Union Trustee

8/06 – Local 805 is pleased to welcome our new Fund Trustee, William "Bill" Dolan. Bill is a retired Local 805 member, with over 30 years working in various Tobacco Association shops.

Settlement Success:Union gains commitment to fair accrual rate, new Fund Manager, expanded Board

The Union Trustees to the Pension and Welfare Funds have reached a settlement with the Employer Trustees. In December, the Employer Trustees slashed future pension benefit accruals to zero to save themselves from paying higher contributions. Gerry Whelan and Bobby Jackson helped the Employer Trustees eliminate pension accruals after Gerry lost the election. The Employer Trustees then hired Gerry and his wife to run the Funds. Now, after hearings in Federal court and an arbitration, all of these actions have been undone.

In exchange for dropping the lawsuit in Federal Court the Union achieved all of its aims. Settling out of court saves the members a lengthy and costly legal battle. Fund Trustee and Local President Sandy Pope said, "Once the Employer Trustees saw that we were serious about the lawsuit, we basically got everything we wanted. The accrual rate will be fair, the Funds will be run by a professional, and the new, expanded Board will keep something like this from happening again."

The accrual rate of zero adopted in December will never go into effect. The Union Trustees and the Employer Trustees will each hire an actuary to determine the highest future benefit accrual rate the Pension Fund can afford. It will take about three months for the actuaries to complete their analysis, but the rate adopted will be retroactive to the beginning of the "zero period." The actuaries will also review the costs of early retirement options. Once the study is complete the Union Trustees will seek membership feedback.

Gerry and Chris Whelan retired on July 1st and a new, professional Fund Manager has been hired. Rod Gorham, a former Fund Manger for the 1199 National Health and Human Service Employees Union began working for Local 805 in July.

The settlement also calls for the Board of Trustees to be restructured. The Union and the Employers will each add two new members. The two new Employer Trustees will be elected by employers from non-Tobacco Association shops. Of the two new Union Trustees, one will be a Local 805 retiree.

How are my Pension and Welfare Funds Run?

Your Pension and Welfare Funds are Taft-Hartley Multi-Employer Funds. This means that, by law, the money collected from your employer to provide your pension and health benefits is controlled by both Local 805 and the contributing employers.

The Pension and Welfare Funds are run by a Board of Trustees. The Board is made up of three Union Trustees and three Employer Trustees. Every decision made by the Board must be supported by at least two Trustees from each side. Currently the Board of Trustees is made up of the following people:

The day-to-day operations of the Funds are overseen by the Fund Manager who is appointed by the Board.