Much of the first 14 months of the Obama administration has been a public “love story” between the White House and the Labor Unions. It seems as if President Obama has been basing many of his decisions on how they help the Union Bosses as opposed to how they help the entire country:
- A large contributor to the bankruptcy of Chrysler and General Motors was the liability the Auto Giants owed to the UAW pension plans. In the buyout deal, the President gave the unions more than their fair share of the two companies at the expense of the primary investors who legally should have received more.
- In September the POTUS announced that it would impose a tariff of 35 percent on $1.8 billion of automobile tires imports from China, angering the country holding a large chunk of our bonds, acting on a petition from one of his major constituencies, the United Steelworkers union.
- Unions have been the fiercest proponents of the Obamacare have been the Unions. Andy Stern, head of the SEIU has been to the White House more than any other visitor. Some commentators have reported that’s Stern’s constant trips to the White House is due to his participation in reviewing the basic components of the health care bills as they are developed by the houses of congress. Why is this particular legislation so important to the unions? Because the unions pensions plans are woefully underfunded. The hope is once Obamacare is passed union workers will eventually be shoved over to the co-ops (or an eventual government option), freeing up union cash to help with the pension program.
- As of this very moment the administration is working on a plan to give preference to Union Shops for ALL federal contracts. The proposal, dubbed the “High Road Contracting Policy,” was first reportedby The Daily Caller in early February. According to multiple sources familiar with the discussions, the proposal would give preference to government contractors that pay their hourly workers a “living wage” and provide additional benefits such as health insurance, employer-funded retirement plans and paid sick leave. In other words, they will be “cutting out” the non-union shops and raising the price of jobs, and increasing the federal deficit.
These are just a few ways the President is favoring his friends, the Union leaders over the needs of the Union Rank and file and the American People. The reason for the favorable treatment, the Pension Plans are about to collapse, most of the rank and file may not even know that when they are ready to retire their pensions may not be there.
Should these pension plans collapse its curtains for the Union Leaders and it would not be the best recruiting tool for the labor movement in general.
How bad off are the union pension plans? The best single indicator of a plan’s financial health is its Funding Percentage. A fully funded plan will have a funding percentage of 100%. A plan is underfunded when the percentage is below 100%. The lower the percentage, the greater the risk that benefits will not be available when they come due.
According to the Pension Protection Act of 2006 multi-employer (plans set through unions and company sponsors) plans are evaluated via their funding levels. To ensure retiree benefits are protected, when a multiemployer plan falls below certain funding levels, stronger funding requirements become effective under provisions of the Pension Protection Act of 2006. Plans whose funding levels are below 80% are referred to as “endangered,” while those below 65% are referred to as “critical.”
The list of 108 union pension plans below is from the Moody’s September 2009 report. The ones in green print are at the endangered level, the ones in red are critical.
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Union Pension Plan |
% Funded |
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Alaska Hotel & Restaurant Employees Pension Plan |
79.70% |
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American Federation of Musicians & Employers Pension |
78.90% |
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Teamsters Local 639 Employers Pension Trust |
76.10% |
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Producer-Writers Guild of America Pension Plan |
75.90% |
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Ohio Operating Engineers Pension Plan |
75.70% |
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Laborers District Council and Contractors Pension Fund of Ohio |
75.40% |
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Southern Nevada Culinary & Bartenders Pension Trust |
75.40% |
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Alaska Electrical Pension Plan |
74.30% |
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Alaska Laborers – Employers Retirement Fund |
73.70% |
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Electrical Contractors Assoc. of City of Chicago Union 134, IBEW Jt. Pension 2 |
73.70% |
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Carpenters Retirement Plan of Western Washington |
73.10% |
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Automotive Industries Pension Plan |
72.40% |
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American Maritime Officers Pension Plan (2005) |
72.40% |
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United Mine Workers of America 1974 Pension Plan |
72.30% |
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GCIU Local 119B NY Printers League Pension Fund |
71.40% |
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National Elevator Industry Pension |
71.00% |
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Western Conference of Teamsters |
70.60% |
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Newspaper GUILD of NY the New York Times Pension Plan |
70.50% |
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Chicago District Council of Carpenters Pension Fund |
70.10% |
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District No. 9, IAM and Aerospace Workers Pension |
69.70% |
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Rocky Mt. UFCW Unions & Employers Pension Plan |
69.50% |
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Hotel/Casino – Summary |
69.50% |
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NECA-IBEW Pension Trust Fund |
69.20% |
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Central Pension Fund of the IUOE and Participating Employers |
69.20% |
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AFTRA Retirement Plan |
68.90% |
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Carpenters Pension Trust Fund of St Louis |
68.60% |
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MA State Carpenters Pension Fund |
68.60% |
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National Automatic Sprinkler Industry Pension |
67.80% |
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Midwest Operating Engineers Pension |
67.80% |
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Retail Clerks Pension Plan |
67.70% |
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Electrical Workers Pension Fund, Local 103, IBEW |
67.50% |
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Building Trades United Pension Trust Fund MIL and Vicinity |
67.40% |
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CWA/ITU Negotiated Pension Plan |
66.80% |
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UFCW Unions & Employers Midwest Pension Fund |
66.70% |
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Laborers Pension Fund |
66.70% |
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Carpenters Pension Fund of Philadelphia and Vicinity |
66.40% |
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UFCW International Union Pension Plan for Employees |
66.40% |
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Alaska Teamster-Employer Pension Plan |
66.30% |
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Steelworkers Pension Trust (2007) |
66.20% |
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Hotel Industry-ILWU Pension Plan |
65.70% |
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National Asbestos Workers Pension Fund |
65.20% |
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IUOE Stationary Engineers Local 39 Pension Plan |
65.20% |
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SEIU National Industry Pension Fund |
65.00% |
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Trucking Employees of North Jersey Welfare Fund Inc. Pension Fund |
65.00% |
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Massachusetts Laborers Pension Fund |
64.70% |
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California Ironworkers Field Pension Trust |
64.50% |
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Carpenters Pension Fund of Illinois |
64.20% |
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Automotive Machinists Pension Plan |
63.80% |
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NJ Carpenters Pension Fund |
63.60% |
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The Newspaper Guild International Pension Plan |
62.80% |
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Minnesota Laborers Pension Fund |
62.40% |
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Bakery & Confectionery Union & Industry International Pension |
62.30% |
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Laborers National Pension Fund |
62.10% |
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Operating Engineers Pension Trust |
61.70% |
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UFCW Unions and Food Employers Pension Plan of Central Ohio |
61.30% |
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UFCW Nothern California Joint Pension |
61.00% |
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Carpenters Pension fund of Western Pennsylvania |
60.80% |
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Newspaper and Mail Delivers – Publishers Pension Fund |
60.50% |
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Carpenter Pension Trust for Southern California |
60.40% |
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BERT Bell Pete Rozelle NFL Player Retirement Plan |
60.00% |
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Major League Baseball Players Pension Plan |
59.60% |
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Sheet Metal Workers Pension Plan of S. CA, Arizona and Nevada |
59.50% |
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NY District Council of Carpenters Pension Plan |
59.30% |
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SO CA UFCW Union Joint Pension |
58.40% |
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National Electrical Benefit Fund |
58.20% |
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Boilermaker Blacksmith National Pension |
58% |
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GCIU-Employer Retirement Fund |
57.60% |
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ILWU-PMA Pension Plan |
56.90% |
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Masters, Mates & Pilots Pension Plan |
56.60% |
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Wisconsin Carpenters Pension Fund |
56.50% |
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Electrical Workers Pension Trust Fund of Local Union 58 |
55.80% |
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Automotive Mechanics Local No. 701 Union Pension Fund |
55.60% |
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IB of T Union Local 710 Pension |
55.60% |
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Michigan Laborers Pension Fund |
55.30% |
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PACE Industry Union-Management Pension Fund |
55.20% |
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Pipe Fitters Retirement Fund Local 597 |
55.20% |
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Sheet Metal Workers Pension Plan of Northern Calif |
55.10% |
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Central Pennsylvania Teamsters Defined Benefit Plan |
55.10% |
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NY Hotel Trades Council and Hotel Association of NYC Pension Fund |
55.10% |
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Teamsters Joint Council No. 83 of Verginia Pension Fund |
54.90% |
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National Integrated Group Pension Plan |
54.50% |
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Plumbers & Pipefitters National Pension |
54.50% |
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Central Laborers Pension Fund |
54.20% |
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Iron Workers District Council of Southern Ohio & Vicinity Pension Trust |
53.90% |
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Carpenters Pension Trust Fund for Northern California |
53.70% |
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Bricklayers & Trowel Trades International Pension Fund |
53.60% |
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Western Pennsylvania Teamsters and Employers Pension Plan |
53.10% |
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Chicago Newspaper Publishers Drivers Union Pension Trust |
52.90% |
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OE Pension Trust Fund |
52.40% |
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Indiana State District Council of Laborers & Hod Carriers Pension Fund |
51.70% |
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NYS Teamsters Conference Pension & Retirement Fund |
51.40% |
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LIUNA National Industrial Pension Fund |
50.30% |
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Michigan Carpenters Pension Fund |
50.20% |
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Twin City Carpenters Pension Fund |
50.20% |
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Laborers Pension Trust Fund for Northern California |
50.00% |
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HERE Local 25 and Hotel Association of Washington, DC Pension |
49.30% |
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Central States SE&SW |
48.50% |
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Teamsters Pension Trust of Philadelphia and Vicinity |
48.50% |
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Operating Engineers Local 324 Pension Fund |
47.30% |
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Laborers District Council of W. PA Pension Fund |
46.80% |
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Iron Workers Local No. 25 Pension Trust Fund |
46.40% |
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Local 705 IB of T Pension Trust Fund |
46.30% |
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Building Service 32B-J Pension Fund |
42.30% |
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Carpenters Pension Trust Fund Detroit & Vicinity |
41.40% |
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New England Teamsters & Trucking Industry Pension |
40.50% |
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FELRA and UFCW Pension Fund |
39.80% |
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Local 804 I.B.T. and Local 447 IAM UPS Multi-employer Retirement Plan |
39.70% |
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Sheet Metal Workers National Pension Fund |
38.00% |
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This is the first of a series of posts about Union pensions, and how White House policy is being adapted to save the “arses” of union leaders. Look for more soon.
