Central States Fund

[Guest dmcmurray]

Does anyone know the amount of the Central States Pension Fund's UVB's for withdrawal liability purposes as of December 31, 2005? December 31, 2004? Any insights as to how to estimate the withdrawal liability without a formal request to the Fund?

[Bill Ecklund]

UVB as of 12/31/04 was $10,878,773,887. As of 12/31/05 UVB was $12,487,353,003. To calculate withdrawal liability for a withdrawal in 2006, add up the last ten years worth of contributions. 1996-2005, and multiply the total by 128.45%

[JanetM]

Wow, looking at those numbers almost makes the 2005 Sheet Metal Workers UVB of $2,556,022,442 seem like a real deal.

Bill is that the WD calc, the last ten years worth of contributions X 128.45%

[Bill Ecklund]

Wow, looking at those numbers almost makes the 2005 Sheet Metal Workers UVB of $2,556,022,442 seem like a real deal.

Bill is that the WD calc, the last ten years worth of contributions X 128.45%

That is the way it works out. An actual assessment from Central States will show the last ten years of contributions for the employer and compare that with all employers' contributions over the last ten years. That will result in an "Allocation Fraction" which is multiplied by the UVB to give the withdrawal liability.

[JanetM]

Yikes, that is even more draconian then SMW. They at least only use the last five years.

[Bill Ecklund]

Yikes, that is even more draconian then SMW. They at least only use the last five years.

Actually, it really isn't. SMW does use the last ten years. If you look at the formula on the website, it uses the last five years worth of contributions for each year in the last five years. So for a withdrawal in 2005, the formula requires a listing of the last ten years worth of contributions from 1995 - 2004. If Central States were to use only the last 5 years, the withdrawal liability would be 256.90% of the last five years of contributions.