The Teamsters Local 805 Pension Fund

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.

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.

For more information about how

multi-employer funds work, click:

How are my Pension and Welfare Funds run?

This website is the opinion of the Teamsters Local 805 Executive Board and not of the Teamsters Local 805 Welfare and Pension Funds Board of Trustees or the Fund Manager.