Pension plan road hazards
Although the trucking industry itself is generally healthy, the private pensions covering truckers face uncertainty. This is particularly true for short haulers, who tend to be unionized, and therefore often have multi-employer plans. A failure by one or more employers in a multi-employer plan can threaten others. As that employer’s contribution drops out of the plan, other companies have to make up the difference in future contributions.
Also, the Teamsters pension funds have been plagued with numerous financial problems. The largest, the Central States Pension Fund – with approximately $16 billion in assets – was down about $6 billion as of March 2003.
Therefore, all truckers – and particularly short haulers – should take the time to look into their pensions to make sure their funds are safe. If you aren’t up-to-date on how your pension is doing, our Understanding Your Pension section can help you make sense of your pension plan materials and get more information.
