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
SOURCE United Food and Commercial Worker's Local 56