Shop Talk: A Conversation with Peter Crosson
The latest downturn has had an unprecedented impact on pension funds, endowments and Taft-Hartley plans across the nation. How has your fund fared amid the financial turmoil and credit crisis of the past year and a half?
Our funding status is pretty good. Compared to some of our peers, we’re not in bad shape. Taft-Hartley plans like ours are fully funded multi-employer plans, and benefits are paid every month. Because of that, our trustees are forced to be very conservative. That’s been helpful in the latest downturn. Many public and private pension plans, on the other hand, instead of actually funding contributions are basically issuing IOUs and marking the contribution due as a liability on books.
Has your investment strategy changed at all in response to the downturn?
The stock market crash and resulting credit, banking and financial industry crisis really brought to light the issue of debt and risk. There is so much risk and uncertainty