UFCW Local 56 Pension Plans Announce Revolutionary Shift Toward Indexing Funds

Strategic Investment Re-Allocation Involves Nearly

$300 Million in Combined Assets

Jul 17, 2003, 01:00 ET from United Food and Commercial Worker's Local 56

    CHERRY HILL, N.J., July 17 /PRNewswire/ -- The United Food and Commercial
 Worker's Local 56, a union that represents over 13,000 members in the New
 York, New Jersey, Delaware, Maryland and Pennsylvania areas, announced today
 the organization's pension plans have commenced a transition of assets from
 actively managed accounts to passively managed funds.  UFCW Local 56 is one of
 the first, if not the only union to fully embrace index investing.
     President of UFCW Local 56, Anthony Cinaglia, commented on the news, "The
 indexing initiative is being implemented only after intensive study, due
 diligence and historical analysis of the risk versus reward balance between
 passive and active investment.  After a thorough assessment of the costs and
 benefits associated of the two investment styles it is clear that it is in the
 best interest of our union, our members and pensioners to re-allocate our
 assets to indexed funds."
     The funds include the Retail Meat Pension Plan, UFCW Local 56 Savings Plan
 and the Health and Welfare Plan.  The combined assets of these funds represent
 over $300 million and the future value of this initiative is expected to be
 more than $300 million in additional returns and savings to Local 56 pension
 plans over a 30-year period.
     Eric Ten Broeck, Director of Research, Development and Plan Design for
 Local 56, who performed the due diligence on the indexing initiative
 concluded, "Over the long-term, we feel confident that this initiative can
 deliver enhanced benefits to our union members, significant cost savings to
 the pension plans and offer financial relief to contributing employers."
     The Vanguard Group is assisting UFCW Local 56 in the transition to indexed
     About UFCW Local 56
     UFCW Local 56 began in 1941 as the Amalgamated Meat Cutters & Butcher
 Workmen of North America with their charter signed on February 14.
     In 1978, Amalgamated Meat Cutters & Butcher Workmen of North America
 merged with the Retail Clerks International Union to become the United Food &
 Commercial Workers Union.  UFCW Local 56, AFl-CIO represents various business
 arenas including retail stores, manufacturing plans and healthcare facilities.
 This local is the largest labor union in South Jersey and the second largest
 private sector labor union in the Philadelphia area.  Local 56 is comprised of
 approximately 13,000 members and spans over 4 states.  UFCW Local 56 provides
 an array of benefits for their membership consisting of health & welfare,
 pension plans, and legal services.
      Jeremy Skule                  Steve Hickok
      Ruder Finn                    Ruder Finn
      (212) 715-1617                (212) 593-6342
      skulej@ruderfinn.com          hickoks@ruderfinn.com

SOURCE United Food and Commercial Worker's Local 56