Transportation Pension

Pension Plans in the Trucking Industry
   Is the low-fuel warning light on?

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“Without having fully complied with congressional directives, a move by the U.S. Department of Transportation to open U.S. roadways to Mexican trucks puts the interest of foreign trade and cheap labor ahead of anything else, including highway safety, homeland security and the well being of hard-working Americans.” 

- - Todd Spencer,Owner-Operator Independent Drivers Association, July 26, 2006

"The transportation sector offers many good-paying job opportunities for workers with the right skills,"

-- Secretary of Labor Elaine Chao

“Congress has failed the American worker.  We now know who stands with workers and who stands for corporate greed. I am proud of every Teamster member who joined the International Union in this fight. We will continue our fight to protect pensions and the integrity of the pension system.”

-- Teamsters General President James P. Hoffa

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What’s New . . .

Pension cuts have been a major issue in the current election campaign for control of the International Brotherhood of Teamsters.  “The Teamsters have made pension protection a priority and we are fighting tooth and nail to do just that,” said Teamsters General President James P. Hoffa. "Today we see an attack on pensions. We see rich companies trying to get rid of pensions. But that’s not going to happen to the Teamsters.”

“We’ve had the largest pension cuts in history, when [Hoffa] ran on a pledge of no dues increase and ‘25 and out’ (full pensions after 25 years of work,” charged challenger Tom Leedham.  Ballots were mailed to Teamster members on October 6.

Meanwhile FedEx drivers in Wilmington, Delaware are scheduled to vote October 20 to authorize the Teamsters to represent them in future negotiations.  None of Fedex’s 15,000 drivers nationwide are currently unionized, and union officials are watching developments in Wilmington closely because they believe it will have major implications for the future of Fedex’s workforce.

On Thursday, Aug. 17, President Bush signed into law the Pension Protection Act of 2006, which he called the "most sweeping reform" of US pension law since the enactment of the Employee Retirement Income Security Act (ERISA) in 1974. The compromise measure will have broad impact on the way future pension plans are structured and funded, but to a much greater degree on single employer plans than on the multiemployer plans more common in trucking and transportation.  It will affect pension outcomes, not only for tens of thousands of employees whose plans are currently hanging on the contents of the bill, but for millions of Americans who do not follow pension issues closely.
Affected groups everywhere are weighing in with commentary. With some 44 million Americans covered by private pension plans, bipartisan support for private sector reform was made possible by not stirring up a hornet’s nest of debate about stricter funding guidelines for public employee defined-benefit plans, which remain generous and are woefully underfunded. In any case, the bill may well signal the end of the era private defined-benefit pension plans. As recently as 25 years ago, more than 80 percent of large and medium-sized companies offered such plans. Today, fewer than a third do.

* * *

On August 3, the Senate approved a compromise Pension Reform Bill and sent it on to the White House. It tightens rules for employers with defined-benefit pension plans and clamps down on companies that have fallen behind in meeting their funding obligations.

Underfunding of Defined Benefit plans is now estimated at $450 billion. The bill requires that companies bring their plans to 100 percent funding within seven years, although certain major airlines are given a longer period. Plans that are seriously underfunded, like many in the trucking industry, face restrictions, such as a ban on increasing benefits, and must make accelerated catch-up contributions. President Bush, who has taken a tough stance on forcing full funding of company promises, is expected to sign the legislation shortly.

The Teamsters, who already represent thousands of workers at UPS nationally, won a card-check campaign in early August to organize its first UPS Freight terminal.  A spokesman for UPS said the company will recognize the union and conduct negotiations in good faith. 

Meanwhile, on August 10 the U.S. Department of Transportation submitted for White House review a plan for the broader use of electronic on-board recorders for hours-of-service compliance.  There is no deadline for completing the review.

* * *

Some Democratic Congressmen joined with Teamster leaders recently to criticize pending pension-reform legislation.  “I think we need a discussion before we rush away from defined benefits,” said Representative Richard Neal (D-MA).  “I think we are hastening to a deregulated pension system.”  U.S. Senator Ted Kennedy (D-MA) reportedly supported the plan in recent Congressional negotiations.

* * *

Transportation has been labeled a “High Growth Industry” by the U.S. Department of Labor, which forecast the creation of over 900,000 new U.S. transportation jobs over the next 12 years.  Over a third of these openings are for drivers of heavy and tractor-trailer trucks.  The DOL cites new technologies that allow time-specific delivery and electronic tracking of cargo as factors driving sector growth.

But the continuous rise in the cost of diesel fuel – up another 2 cents in the first week of July – spelled more bad news for independent truckers.  At a national average of $2.91 per gallon, diesel prices climbed to 51 cents above their mark a year ago.

* * *

In April, the ATA Truck Tonnage Index increased 2.0 percent – its strongest monthly gain in over a year and first of 2006.

Recent Transportation Industry Pension News

Central States Pension Payout Scenario





Trans-Texas Corridor Master Development Plan Made Public





Fedex Drivers Set to Vote





Employee Steals from Teamster Local 710 Health Fund





Teamsters Face a Contentious Election





Pension Bill’s Big Winners: Taxpayers, Wall Street



Teamsters Organize UPS Freight



Hoffa Urges Kroger Boycott





Appalachian and Ohio Rail Workers Approve First Teamsters Contract





On-Board Recorder Proposal Goes to White House



Expanding Range of Mexican Trucks a Mistake, OOIDA Says

Pension Bill Under Fire from Teamsters

 





Teamsters Pension Questions & Answers

So you’re a trucker...





What type of plan do I have?





Is your plan good for the long haul?





Pension plan road hazards





Where do I go to find out about my pension?





Contact info for trucking companies





 

 

So you’re a trucker...

You may be a short hauler, and probably unionized. You may be an owner/operator hiring yourself out, or work long-term for a big long-haul firm. There are some 3.1 million truck drivers in the U.S. today, and the $585 billion trucking industry makes it a big engine indeed. In fact, trucking is responsible for about 5 percent of the $11 trillion American economy, as well as 87% of the $677 billion transportation industry.

About 1.4 million truckers belong to the Teamsters union, about 45% of all truckers. But union membership has been steadily falling, despite the overall growth of the industry.

For up-to-date information about events affecting your pension right now, take a look at our Recent Articles section.

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What type of plan do I have?

Unionized short-haul truckers tend to have multi-employer pension plans negotiated by their unions. Long haulers are more likely to have single-employer plans. And both types of plans are usually Defined Benefit Plans.

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Is your plan good for the long haul?

Trucking has grown vigorously over the last decade and that growth – combined with a shortage of drivers – has been keeping salaries high. But this fragmented, highly competitive, and low-margin industry remains sensitive to the economy, interest rates, and the price of diesel. This has contributed to the underfunding epidemic of many trucker pension funds.

A December, 2005 study by the Central States Pension Improvement Committee compared the Teamster's Central States Fund with six other larger Teamster funds. The report, as discussed on the Teamsters for a Democratic Union website, found that despite deeper cuts in benefit, the Central States fund had "the same employers, the same demographics, the same ratio of retirees, and a similar funding ratio." The group has called for more detailed information so they can produce an independent actuarial study of the fund.

According to an October 2004 article in Financial Planning magazine, trucking was underfunded by 33% in the Pension Benefit Guaranty Corporation (PBGC) multiple-employer program.

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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.

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Where do I go to find out about my pension

Good intentions and complex legal mandates are not enough to protect your retirement income. Truckers should take steps to inform themselves about their company pension plans – through your company’s Human Resources organization and, if unionized, through your local union representatives as well.

This website has been designed to help you. Click to our easy-to-follow Understanding Your Pension section for more detailed information.

You can also click here to see contact information for the trucking industry.

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Contact Information for Truckers

Major Trucking Companies:

Contact information for the major trucking companies is listed below. Where possible, we have included direct numbers or web addresses to the relevant pension, benefits, or human resources departments.

ABF Freight System, INC.
www.abfs.com
Main: 1-800-610-5544
Benefits: 479-785-6000

American Freight Company
www.freightcenter.com
Main: 727-595-5950

Averitt Express
www.averittexpress.com
Main: 1-800-283-7488

Bax Global Air Freight
www.baxglobal.com/US.asp
Benefits: 714-442-4518

Bullet Freight
www.bulletfreight.com
Main: 1-888-506-7437

Bullocks Express
www.bullocks-express.com
Main: 1-800-459-3614

Central Freight Lines, Inc.
www.centralfreight.com
Main: 1-800-782-5036

Central Transport
www.centraltransportint.com
Main: 1-800-334-4883

CNF, Inc.
www.Cnf.com
Main: 650-494-2900
Benefits: 503-450-2000

Dayton Freight
www.daytonfreight.com
Main: 1-800-860-5102

DHL Worldwide Express
www.Dhl-usa.com
Main: 954-888-7000
Benefits: 954-888-5716

Estes Express Lines
www.estes-express.com
Main: 1-866-ESTES4U
Benefits: 1-866-ESTES4U x2211

Federal Express
www.Fedex.com
Main: 901-369-3600
Benefits: 901-434-4800

G.I.Trucking
www.gi-trucking.com
Main: 714-523-1122
Benefits: 714-223-2540

J.B. Hunt
www.jbhunt.com
Main: 1-800-643-3622

Kane Freight Lines, Inc.
www.kaneisable.com
Main: 1-800-845-KANE (5263)
Benefits: 1-800-374-4631

Nebraska Transport Company, Inc.
www.nebt.com
Main: 1-800-347-6331

New England Motor Freight
www.nemf.com
Main: 908-965-0100
Benefits: 732-940-7216 x263

Nussbaum Trucking
www.nussbaum.com
Main: 1-800-322-7305

Oak Harbor Freight
www.oakh.com
Main: 1-800-285-6254
Benefits: 1-800-858-8815

Old Dominion Freight Line
www.odfl.com
Main: 1-800-432 6335
Benefits: 336-822-5230 (Bill Tittsworth)

Pilot Air Freight
www.pilotair.com
Main: 610-891-8100
Benefits: 610-891-8122

Roadway Express, Inc.
www.Roadway.com
Main: 330-384-1717

Saia Motor Freight
www.saia.com
Main: 1-800-765-7242
Benefits: 800-950-7242

Schneider National, Inc.
www.Schneider.com
Main: 920-592-2000
Benefits: 800-558-6701 x4183

Southeastern Freight Lines
www.sefl.com
Main: 800-637-7335
Benefits: 1-800-637-7335 x3266

Swift Transportation
www.swifttruckingjobs.com
Main: 1-800-669-7943
Benefits: 1-800-800-2200 (ask for benefits)

UPS
www.ups.com
Main: 404-828-6000
Benefits: 1-800-643-4442

US Freightways
http://www.usfc.com/
Main: 773-824-1000

Viking Freight (re-branded to FedEx Freight West)
www.fedexfreight.fedex.com
Main: 901-369-3600
Benefits: 1-800-525-4478

Vitran Express
www.vitranexpress.com
Main: 800-366-0150
Benefits: 317-803-4039

Ward Trucking
www.wardtrucking.com
Main: 1-800-458-3625

Watkins Motor Lines
www.watkins.com
Main: 1-800-274-9099
Benefits: 1-888-552-6215 x3700

Werner Trucking
www.werner.com
Main: 402-895-6640
Benefits: 1-800-228-2240 x2681

Wilson Trucking
www.wilsontrucking.com
Main: 540-949-3200
Benefits: 540-949-3276

Wichita Southeast Kansas Transit (WSKT)
www.wskt.com
Main: 1-800-879-9758
Benefits: 1-800-879-9758 x152

Yellow Roadway Corporation
www.Yellowroadway.com
Main: 913-696-3028

Non-Union Benefits: 800-458-3323 x6163
Union Benefits: 800-458-3323 x3443

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Teamsters and associated pension funds

Contact information for the Teamsters – and associated pension funds – is provided below:

International Brotherhood of Teamsters
With 1.4 million members, The International Brotherhood of Teamsters has 521 Teamsters local unions in North America. There are 32 regional Teamster pension plans.
www.teamster.org
Tel: 202-624-6800
[email protected]

Central Pennsylvania Teamsters Pension Fund
www.centralPAteamsters.com
Tel: 610-320-5500
[email protected]

Central PA Teamster Reform Committee
www.saveourpension.org
[email protected]

Central States Pension Fund
The largest, the Central States Pension Fund, owed $31 billion to about 460,000 workers and retirees at the end of 2002, according to the New York Times. It has approximately $16 billion in assets – down “about $6 billion in the last three and a half years.”
[email protected]
Tel: (800) 323-5000

Michigan Conference of Teamsters Welfare Fund
www.mctwf.org
Tel: 313-964-2400

New England Teamsters & Trucking Industry Pension Fund
http://www.nettipf.com/

New York State Teamsters Conference –
Pension & Retirement Fund
[email protected]
Tel: 315-455-9790

Western Pennsylvania Teamsters & Employers Pension Fund
www.wpapensionfund.com
Tel: 800-362-4201

Western Conference of Teamsters Pension Plan
Its agreements cover over 300,000 Teamsters through pension agreements with 5,200 employers in 13 states. Joint Councils are set up in areas with three or more local unions.

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Joint Councils by State

Alaska
Joint Council 28: 206-441-7470

Arizona
Joint Council 3: 303-477-1623

California
Joint Council 7: 415-467-7768
Joint Council 42: 626-573-4242
Joint Council 38: 209-577-0500

Colorado
Joint Council 3: 303-477-1623

Hawaii
Joint Council 42: 626-573-4242

Idaho
Joint Council 3: 303-477-1623

Montana
Joint Council 3: 303-477-1623

Nevada
Joint Council 38: 209-577-0500

New Mexico
Joint Council 3: 303-477-1623

Oregon
Joint Council 37: 503-251-2337

Utah
Joint Council 3: 303-477-1623

Washington
Joint Council 28: 206-441-7470
Joint Council 37: 503-251-2337

Wyoming
Joint Council 3: 303-477-1623

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Visit our Pension Legal Help section were you will find a listing of the six regional pension counseling and information projects sponsored by the Administration on Aging (AoA). 

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