Is there an explanation as to why they weren't kept currentl on funding?
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Oh no they must've invested heavily into dean foods stock LMAO
There are a whole hell of a lot of things you can blame management for that led to the loses and now bankruptcy, but the Central States pension plan being underfunded isn’t one of them.
The plan isn’t run by the company, its run by the Teamsters. Dean Foods made all of the contributions to the plan that was required of them, but the plan has been run poorly by the Teamsters. The Teamsters let the single biggest contributor out of the plan (UPS) and then made bad investments that within a year of UPS getting out lost the billions of dollars that UPS paid to get out. No new employers are going to sign up for an underfunded plan like this, so the Teamsters have given up trying to fully fund the plan and are now hoping for a government bailout.
Spending cash on that stupid, waste of time app, plus iPads that nobody uses....there’s where the pension money went - bad spending by bad management.
The pension plan in question is underfunded- more retirees then active participants and less employers contribiting to the plan then ever before (plan not run by Dean Food- multi employer plan that means multiple employers- not just Dean Foods contribute). As stated, Dean Foods not behind on payments, but cost to get out of the plan including closing locations in the plan are where that $700 million number comes from.
they are current on funding - this is called unfunded withdraw liability - look it up