Download Report

Susan Mauren
Retiree Representative to the Central States Pension Fund
P.O. Box 15670, Minneapolis, MN 55415
Email: CentralStatesRetireeRep@losgs.com
UPDATE FROM RETIREE REPRESENTATIVE (#1)
May 22, 2015
To my fellow retirees: Please read this letter carefully.
You recently received a letter from me informing you that I was appointed to be the Retiree
Representative for the Central States Pension Fund. The Multiemployer Pension Reform Act of
2014 (MPRA) requires that Central States appoint a retiree representative to advocate on
behalf of retirees. It is an unpaid position and is independent of the Fund.
I have been an advocate for Teamsters for over 30 years, and during that time, I have gained
considerable experience with a variety of pension systems, which has helped me better
understand the challenges faced by the Fund and the ramifications of MPRA. Although I do not
have a vote in this process, I am listening to and considering your concerns, and I am
determined to do everything I can to advocate to the Fund Trustees in support of the interests
of all retirees and terminated vested participants.
My goal — as assigned to me under MPRA — is to help ensure that the painful, but important
process undertaken by Central States is fair and equitable to all retirees, follows the law and
includes close scrutiny of all options. I am working closely with the attorneys at Leonard,
O’Brien, Spencer, Gayle and Sayre, Ltd. in Minneapolis, Minnesota towards this goal. These
attorneys have over 60 years combined experience with multiemployer pension plans like
Central States Pension Fund.
I have also retained the firm First Actuarial Consulting Services as independent actuaries. Like
my attorneys, they have considerable experience with multiemployer pension plans. They have
requested and are in the process of reviewing the data required to assess the financial
condition of Central States Pension Fund and the necessity for benefits reductions as part of a
rescue plan under MPRA. I will share information concerning this independent actuarial review
when their process has been completed. It is important to note that I -- not Central States -selected the independent attorneys and actuaries to assist me in my role as retiree
representative.
In my prior letter, I included an email address and post office box where I can be reached with
your comments. I want to thank those of you who have taken the time to contact me. I have
received more than 2,000 letters and emails. Many of you have expressed support for me
during this difficult process, and I am very grateful for that. Some of you have asked specific
questions, others shared personal stories, and some provided comments or suggestions for the
Trustees to consider for the rescue plan. Given the high volume of emails and communications,
it is not possible for me to respond to them individually. However, I have been reading and
considering these communications, and I will remain mindful of them as the Funds’ Trustees
discuss the parameters of a potential pension rescue plan.
The Fund is still awaiting guidance from the U.S. Department of Treasury (expected in June),
which is among the requirements necessary for the Trustees to prepare a pension rescue plan.
As a result, many of the questions I have received concerning the nature and scope of the
rescue plan cannot be answered at this time. These include:
•
The extent to which any rescue plan would protect:






Surviving spouses of Fund participants and any age requirements that would be
applicable to such protections
Participants whose employers have gone bankrupt or out of business
(“orphans”)
Older retired participants
Participants who are receiving Social Security disability benefits, but have never
received a Central States disability pension
Participants who have not yet started receiving Social Security retirement
benefits
Participants who are already receiving relatively low pension benefit amounts
I have also received other questions or comments concerning:
•
•
•
The need to consider changes to the Pension Fund’s restricted re-employment rules
The importance of considering all options short of benefit suspensions
Whether it is possible to make lump sum distributions of pension benefits
Some of these questions are legal in nature and have already been addressed by the Pension
Fund on its website devoted to MPRA and the rescue planning process (such as the question
concerning lump sum payments, which the Fund has indicated are not legally permissible).
For up-to-date information regarding the status of the Central States pension rescue planning
process, please refer to the Pension Fund’s website, www.cspensionrescue.com, or call 1-800323-7640 for a recorded informational message. The recorded message includes responses to
select Frequently Asked Questions which address some of the issues listed above. As I am not a
representative of the Fund, I cannot speak on their behalf and cannot answer specific questions
regarding your current or future benefit. Where participants have asked questions that are
2
TM: 535363
specific to their particular circumstances, I have redirected those to Central States for response
through personal, direct communication.
Copies of this correspondence, along with my first letter and information about MPRA are
available at www.losgs.com/centralstatesretireerep. Again, thank you for your correspondence.
I continue to welcome your communications at the email address and post office box at the top
of this letter.
Sincerely,
Susan Mauren
Retiree Representative for Central States Pension Fund’s Retirees
3
TM: 535363