Health & Welfare and Pension Funds
of Philadelphia and Vicinity

Annual Report (SAR)

Set forth below is the latest Summary Annual Report that has been published.  For a printable version (in PDF format) click here. 

SUMMARY ANNUAL REPORT FOR

TEAMSTERS PENSION TRUST FUND

OF PHILADELPHIA & VICINITY

             This is a summary of the Annual Report for the TEAMSTERS PENSION TRUST FUND OF PHILADELPHIA & VICINITY (the “Fund”) (employer identification number 23-1511735) for the plan year ending 12/31/2007. The Annual Report has been filed with the Employee Benefits Security Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

 Basic Financial Statement

Benefits under the plan are provided by a trust fund. Plan expenses were $141,791,250. These expenses included $7,834,009 in administrative expenses and $133,957,241 in benefits paid to participants and beneficiaries, and $0 in other expenses. A total of 24,113 persons were participants in or beneficiaries of the plan at the end of the plan year,although not all of these persons had yet earned the right to receive benefits.

The value of plan assets, after subtracting liabilities of the plan, was $1,612,406,963 as of the end of the plan year, compared to $1,561,047,441 as of the beginning of the plan year. During the plan year the plan experienced a change in its net assets of $51,359,522. This change includes unrealized appreciation or depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $193,150,772, including employer contributions of $91,445,014, gains/(losses) of $47,559,779 from the sale of assets, and earnings from investments of $54,145,979.

 Minimum Funding Standards

             An actuary's statement shows that enough money was contributed to the plan to keep it funded in accordance with the minimum funding standards of ERISA.

 Your Rights to Additional Information

             You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report: 

1.         An accountant's report.

2.         Financial information and information on payments to service providers.

 3.         Assets held for investment.

4.         Loans or other obligations in default or classified as uncollectible.

5.         Transactions in excess of 5 percent of the plan assets.

6.         Actuarial information regarding the funding of the plan.

             To obtain a copy of the full annual report, or any part thereof, write or call WILLIAM J. EINHORN, the plan administrator, at 6981 NORTH PARK DRIVE, SUITE 400, PENNSAUKEN, NJ  08109 and phone number, 856-382-2400. The charge to cover copying costs will be $5.00 for the full annual report, or $0.10 per page for any part thereof.

             You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge.

             You also have the legally protected right to examine the annual report at the main office of the plan: 6981 NORTH PARK DRIVE, SUITE 400, PENNSAUKEN, NJ  08109, and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. 

William J. Einhorn

Plan Administrator

Important Information About Your Pension Plan

To Participants and Employers:

As required last year, the Department of Labor mandates that, under a law known as the Pension Funding Equity Act of 2004, we send to all interested parties information in a standard format regarding the funded status of the Teamsters Pension Plan of Philadelphia & Vicinity (the “Plan”). This cover letter attempts to put the attached Annual Funding Notice in perspective, particularly in light of the enactment of the Pension Protection Act of 2006 which mandates that pension plans, like yours, adhere to a different set of funding standards and reporting requirements.

Pension plans like your Plan are designed to accumulate contributions and invest them before Participantsretire so that sufficient assets are available to pay their pensions at retirement. It is critical that your Plan is funded properly to continue providing benefits for Participants at intended levels. The Trustees of your Plan have engaged consultants to ensure that your Plan is adequately funded. Among them are actuaries who certify that the Plan is properly funded under Federal law, utilizing a series of commonly used assumptions regarding items like mortality rates and long-term interest rates that reflect investment performance.The funded status of a pension plan is commonly expressed as a percentage, reflecting the relationship between the assets (contributions plus investments) and liabilities (benefits plus operating expenses) of the plan. There are numerous ways in which the funded status can be determined. The Pension Funding Equity Act requires that the funded percentage be calculated one way, but the more recently enacted Pension

Protection Act requires a different calculation. Under the rules set forth under the more recently enacted Pension Protection Act, the funded percentage of Your Plan as of January 1, 2007 would be 81%. And, as of January 1, 2008, the effective date of the Pension Protection Act, the funded status of the Plan stands at 82.4%, within the “safe” zone established under that new law. Thus, the Plan, as of January 1, 2008, is neither “endangered,” “seriously endangered” nor “critical.” The Fund Actuary’s certification to the IRS of the Plan’s current funding status has also been reprinted in this Newsletter.

In the enclosed Annual Funding Notice, an interest rate of 5.78% (as prescribed by the IRS under the Pension Funding Equity Act) and the actuarial value of assets were used in determining the funded status of Your Plan, resulting in a lower percentage than our actuary’s calculation under the Pension Protection Act. The IRS-prescribed interest rate of 5.78% is significantly below the 7.50% long-term interest rate used by the Plan’s actuary.

The enclosed notice makes reference to special rules governing "insolvent plans." Your plan is not financially troubled, and is not subject to these requirements. The Teamsters Pension Plan of Philadelphia & Vicinity has been providing benefits for Plan Participants without interruption for over 50 years. In 2007, benefit payments totaling $133.9 million were paid to approximately 12,900 retired Participants and beneficiaries. The Trustees of the Plan have remained committed to operating your Plan on a financially sound basis and meeting all Federal funding requirements, with the goal of providing benefits to enable Plan Participants the ability to attain a secure financial future.

If you have any questions, please contact the Pension Benefits Department by calling the Fund office ateither (800) 523-2846 or (856) 382-2400.

Annual Funding Notice
For
Teamsters Pension Plan of Philadelphia & Vicinity

Introduction

This notice, which federal law requires all multiemployer plans to send annually, includes important information about the funding level of Teamsters Pension Plan of Philadelphia & Vicinity, Plan Number 001 and EIN 23-1511735 (Plan).  This notice also includes information about rules governing insolvent plans and benefit payments guaranteed by the Pension Benefit Guaranty Corporation (PBGC), a federal agency.  This notice is for the plan year beginning 1/1/2007 and ending 12/31/2007 (Plan Year).

Plan’s Funding Level

 Plan’s Financial Information

The market value of the Plan’s assets as of 1/1/2007 was $1,561,037,238. The total amount of benefit payments for the Plan Year was $133,957,241. The ratio of assets to benefit payments is 11.7. This ratio suggests that the Plan’s assets could provide for approximately 12 years of benefit payments in annual amounts equal to what was paid out in the Plan Year. However, the ratio does not take into account future changes in total benefit payments or plan assets.

Rules Governing Insolvent Plans

Federal law has a number of special rules that apply to financially troubled multiemployer plans.  Under so-called “plan reorganization rules,” a plan with adverse financial experience may need to increase required contributions and may, under certain circumstances, reduce benefits that are not eligible for the PBGC’s guarantee (generally, benefits that have been in effect for less than 60 months).  If a plan is in reorganization status, it must provide notification that the plan is in reorganization status and that, if contributions are not increased, accrued benefits under the plan may be reduced or an excise tax may be imposed (or both).  The law requires the plan to furnish this notification to each contributing employer and the labor organization.

 Despite the special plan reorganization rules, a plan in reorganization nevertheless could become insolvent.  A plan is insolvent for a plan year if its available financial resources are not sufficient to pay benefits when due for the plan year.  An insolvent plan must reduce benefit payments to the highest level that can be paid from the plan’s available financial resources.  If such resources are not enough to pay benefits at a level specified by law (see Benefit Payments Guaranteed by the PBGC, below), the plan must apply to the PBGC for financial assistance.  The PBGC, by law, will loan the plan the amount necessary to pay benefits at the guaranteed level.  Reduced benefits may be restored if the plan’s financial condition improves.

 A plan that becomes insolvent must provide prompt notification of the insolvency to participants and beneficiaries, contributing employers, labor unions representing participants, and PBGC.  In addition, participants and beneficiaries also must receive information regarding whether, and how, their benefits will be reduced or affected as a result of the insolvency, including loss of a lump sum option.  This information will be provided for each year the plan is insolvent.

Benefit Payments Guaranteed by the PBGC

Where to Get More Information

For more information about this notice, you may contact Teamsters Pension Plan of Philadelphia & Vicinity at either (800) 523-2846 or (856) 382-2400, 6981 North Park Drive, Suite 400, Pennsauken, NJ 08109.  For more information about the PBGC and multiemployer benefit guarantees, go to PBGC’s website, www.pbgc.gov, or call PBGC toll-free at 1 (800) 400-7242 (TTY/TDD users may call the Federal relay service toll free at 1 (800) 877-8339 and ask to be connected to 1 (800) 400-7242).

If you would like to see a more detailed financial statement prepared by the Fund's Independent Auditor, click here.

 Last Date Updated :  04/28/09