Teamsters Central States, Southeast and Southwest Areas Pension Plan's funding has deteriorated to 53.9%, keeping it in “critical status,” according to its annual funding notice that covers the period through Dec. 31.
The Rosemont, Ill.-based pension plan's funding level fell from 58.9% in 2011 and 63.4% in 2010. Both the assets and liabilities of the plan have fallen over the same three years.
The pension fund's assets totaled $18.8 billion and liabilities, $34.9 billion, based on actuarial values as of Jan. 1, 2012, the latest plan measurement date. Plan assets fell from $21 billion in 2011 and $22.7 billion in 2010.
Plan liabilities fell during the same period from $35.6 billion and $35.9 billion, respectively.
On a market-value basis, plan assets totaled $17.7 billion as of Dec. 31. The notice had no corresponding liability data for that date.
The pension fund's asset allocation as of Dec. 31 was 31% equities, 30% collective trusts, 12% U.S. government securities, 8% corporate debt securities, 4% mutual funds, 7% loans to participants and 8% other, the notice states.
The pension fund is projected to have a funding deficiency at least through 2021, according to the notice.
The Pension Protection Act, which requires the annual funding notice, defines the criteria for a critical status designation to include a funding level less than 65%.
The plan has been operating under a rehabilitation plan, adopted in 2008, increasing the contribution rate among employers participating in the multiemployer fund.
Mark Angerame, chief financial officer, Central States, couldn't be reached for comment.