CENTRAL STATES HEALTH AND WELFARE FUND FINANCIAL AND ANALYTICAL INFORMATION MARCH 31, 2017

Transcription

1 CENTRAL STATES HEALTH AND WELFARE FUND FINANCIAL AND ANALYTICAL INFORMATION MARCH 31, 217

2 CENTRAL STATES HEALTH AND WELFARE FUND FINANCIAL AND ANALYTICAL INFORMATION MARCH 31, 217 Financial Report FR Financial Statements: Executive Summaries Financial Statements * Statement of Receipts and Disbursements Graph *Includes Active Plan and Retiree Plan

3 HEAL TH & WELFARE FUND FINANCIAL REPORT March 31, 217 and the Three Months Then Ended (Dollars in Thousands) 1. Net assets were 5,146,59 at March 31, 217, compared to 5,44,97 at December 31, 216, an increase of 11,683 compared to an increase of 179,133 for the same period last year. The 77,45 difference is due to 11, 79 less net operating income offset by 24,34 more net investment income. 2. A comparison of Full-Time Equivalent (FTE) actives and retirees follows: Actives Retirees As of: February ,33 6,512 December ,56 6,331 Two-month average: February ,795 6,386 February ,84 6,213 % increase.52% 2.78% 3. For the three months ended March 217, the Fund's net operating gain was 9,726 compared to a gain of 111,516 for the same period in 216, or a 11,79 unfavorable change: (22,349) less contributions primarily due to an extra week in 216, offset by increases in rates, (78,36) more benefits, (428) more TeamCare administrative fees and (77) more general and administrative expenses. 4. During the three months ended March 217 and 216, the Fund transferred 114,63 and 125,77, respectively, to investments as the operations generated positive cash flows for those periods. 5. Investment asset allocation as of March 31, 217: D2% Equity Fixed Income 8% FR

4 Central States, Southeast and Southwest Areas Health and Welfare Fund Executive Summary of Financial Position March 31, 217 (Dollar amounts in thousands) March 31, December 31, (1) Total investments, net 5,434,898 5,227,48 Change in Net Assets Dollars Percentage 27, Investment related assets 1,384,88 1,28,837 Employer contributions receivable, net 248,37 314,32 Other assets 28,657 62,185 Total assets 7,96,67 6,812, , (66,13) (2) (1.3) (33,528) (.7) 283, Investment related liabilities 1,387,628 1,211,633 Estimated benefits 387, ,297 Other liabilities 174,94 128,985 Total liabilities 1,95,8 1,767,915 NET ASSETS 5,146,59 5,44,97 (175,995) (3.5) 39,785.8 (45,955) {.9) {182, 165} {3.6} 11, Note(s): (1) Does not include final year end adjustments. (2) Primarily a four week billing period for March 217 compared to a five week billing period for December

5 Central States, Southeast and Southwest Areas Health and Welfare Fund Executive Summary of Financial Operations March 31, 217 (Tabular dollar amounts in thousands) INCOME & EXPENSES Contributions Year-to-Date , ,355 Change from Prior Year Dollars Percentage (19,274) (1) (2.5) Recognized portion of UPS lump sum 18,378 21,453 (3,75) (14.3) Benefits 726, ,41 (78,36) (12.1) TeamCare administrative fees 19,578 19, 15 (428) (2.2) General and administrative expenses 18,439 17,732 (77) (4.) Operating gain(loss) 9, ,516 (11,79) N/A Net investment income(loss) 91,957 67,617 24,34 N/A Change in net assets 11, ,133 (77,45) N/A OPERATING STATISTICS Benefits to contributions 96.1 % 83.6 % General and administrative expenses to: Contributions Benefits 2.4 % 2.5 % 2.3 % 2.7 % Two-month average FTEs (2) 189, ,84 Contributions per average FTE 3,984 4,17 Benefits per average FTE 3,829 3,434 NoteCsl: (1) Primarily an extra week in 216, offset by increases in rates. (2) Reflects revised Operations Group FTE methodology. 2

6 Central States, Southeast and Southwest Areas Health and Welfare Fund Executive Summary of Current and Projected Operations March 31, 217 {Dollar amounts in thousands) Actual through March 217 April 217 Projection Remainder of 217 Year Ending December 217 Contributions 756,81 314,5 2,27,219 3,34,8 Recognized portion of UPS lump sum 18,378 6,1 49,22 73,5 Benefits 726, ,4 1,873,384 2,835,5 TeamCare administrative fees 19,578 6,8 54,722 81,1 General and administrative expenses 18,439 6,2 49,761 74,4 Operating gain(loss) 9,726 72,2 341, ,3 Net investment income{loss) 91,957 13,6 111, ,2 Change in net assets 11,683 85,8 453,17 64,5 Assumotions used in 217 Projections Contributions - Scheduled contract rate increases and trended FTEs. Benefits - Overall cost increase of 7% per FTE. General and administrative expenses - Actual expenses to date plus 2% increase over 216 expenses for remaining months. Investment income - Actual return earned to date plus remaining months annualized return of 3%. 3

7 Central States, Southeast and Southwest Areas Health and Welfare Fund Statement of Net Assets (In thousands) ASSETS Investments: Cash equivalents U. S. government and government agency debt Corporate debt U.S. equity International equity Commingled equity index fund Total investments March 31, 217 1,259,636 1,598,137 1,526,59 158,19 259, ,687 5,498, ,28 1,89,482 1,441, , ,75 689,69 5,32,664 December 31, (1) ,477 1,622,335 1,343, ,841 27, ,323 4,752,43 Receivables: Employer contributions, less allowance for uncollectible contributions (2) Other, primarily investment related Total receivables 248,37 41,43 289, ,32 59,42 373, ,916 42,34 285,95 Cash Assets held in securities lending program Other, primarily furniture and equipment - net Total assets 323 1,384,88 6,228 7,179, ,28,837 5,99 6,99, ,644 9,895 5,623,619 LIABILITIES Estimated benefits (3) Liability to return collateral held under securities lending agreements Checks drawn against future deposits Payable for securities purchased Accounts payable and accrued expenses (5) Total liabilities 387,512 1,384,88 12,639 82, , 121 2,32, ,297 1,28,837 11,629 96,43 12,152 1,864,345 (4) 4, ,734 11,41 115,314 24,321 1,37,551 NET ASSETS 5,146,59 5,44,97 4,316,68 NoteCsl: ( 1) Does not include final year end adjustments. (2) Allowance for uncollectible contributions: (3) Includes estimated claims liability adjustments: (4) Includes 216 claims of 39.8 million paid in January 217. (5) Includes deferred UPS revenue: 3,858 82,651 3,669 11,29 2,581 95, ,841 4a

8 Central States, Southeast and Southwest Areas Health and Welfare Fund Active Plan Statement of Net Assets (In thousands) ASSETS Investments: Cash equivalents U. S. government and government agency debt Corporate debt U.S. equity International equity Commingled equity index fund Total investments March 31, 217 1,259,636 1,598,137 1,526,59 158,19 259, ,687 5,498, ,28 1,89,482 1,441, , ,75 689,69 5,32,664 December 31, (1) ,477 1,622,335 1,343, ,841 27, ,323 4,752,43 Receivables: Employer contributions, less allowance for uncollectible contributions (2) Other, primarily investment related Total receivables 248,37 41,43 289, ,32 59,42 373, ,916 42,34 285,95 Cash Assets held in securities lending program Other, primarily furniture and equipment - net Total assets 323 1,384,88 6,228 7,179, ,28,837 5,99 6,99, ,644 9,895 5,623,619 LIABILITIES Estimated benefits (3) Interest in assets of Retiree Plan Liability to return collateral held under securities lending agreements Checks drawn against future deposits Payable for securities purchased Accounts payable and accrued expenses (5) Total liabilities 376, ,349 1,384,88 12,639 82, ,121 2,418, , ,512 1,28,837 11,629 96,43 12, 152 2,216,664 (4) 389, , ,734 11,41 115,314 24,321 1,495,86 NET ASSETS 4,76,434 4,692,588 4,127,813 NoteCsl: (1) Does not include final year end adjustments. (2) Allowance for uncollectible contributions: (3) Includes estimated claims liability adjustments: (4) Includes 216 claims of 39.8 million paid in January 217. (5) Includes deferred UPS revenue: 3,858 82,651 3,669 11,29 2,581 92, ,841 4b

9 Central States, Southeast and Southwest Areas Health and Welfare Fund Retiree Plan Statement of Net Assets (In thousands} March 31, 217 December 31, 216 (1) ASSETS Interest in assets of Active Plan 397, , ,448 Current benefit obligations Claims incurred but not reported 11,193 11,193 11, 193 NET ASSETS 386,156 ===== 352, ,255 NoteCsl: (1} Does not include final year end adjustments. 4c

10 Central States, Southeast and Southwest Areas Health and Welfare Fund Statement of Changes in Net Assets (In thousands) March Revenue: Contributions 25, ,9 Recognized portion of UPS lump sum 6,126 7,151 Total revenue 256, ,241 Three Months Ended March ,81 775,355 18,378 21, , ,88 Benefits and expenses: Benefits 263,47 25,997 TeamCare administrative fees 6,298 6,522 General and administrative expenses 6,368 6,85 Total benefits and expenses 276,73 263,64 Operating gain(loss) (19,31) (17,363) Investment income(loss): Interest and dividends 9,799 8,813 Realized and unrealized gain(loss) on investments, net 1,176 82,699 Investment expenses (65) (59~ Net investment income(loss) 1,325 9,922 Change in net assets (8,985) 73,559 NET ASSETS: Beginning of period 5,155,575 4,421,642 End of period 5,146,59 4,495,21 726, ,41 19,578 19,15 18,439 17, , ,292 9, ,516 26,533 23,983 67,642 45,36 (2,218) (1,726) 91,957 67,617 11, ,133 5,44,97 4,316,68 5,146,59 4,495,21 Sa

11 Central States, Southeast and Southwest Areas Health and Welfare Fund Statement of Changes in Net Assets (In thousands) 216 (1) 215 Revenue: Contributions 3,251,235 2,973,546 Recognized portion of UPS lump sum 85,812 98,112 Total revenue 3,337,47 3,71,658 Benefits and expenses: Benefits 2,638,936 2,43,448 TeamCare administrative fees 77,612 73,573 General and administrative expenses 73,17 67,57 Total benefits and expenses 2,789,655 2,571,78 Operating gain(loss) 547,392 5,58 Years Ended ,95,455 1,282, 118 1,428,917 3,524,372 1,282, 118 1,76,828 1,119,11 54,15 33,514 67,328 (2) 43,224 1,828,261 1,195,848 1,696,111 86,27 Investment income(loss): Interest and dividends 99,689 65,839 Realized and unrealized gain(loss) on investments, net 89,197 (65,274) Investment expenses (7,439) (4,818) Net investment income(loss) 181,447 (4,253) 35,738 35,44 72,639 98,82 (1,819) (84) 16, ,286 Change in net assets 728, ,327 NET ASSETS: Beginning of period 4,316,68 3,819,741 End of period 5,44,97 4,316,68 1,82, ,556 2,17,72 1,798,516 3,819,741 2,17,72 Note(s): (1) Does not include final year end adjustments. (2) Includes transitional reinsurance fee of 11,735. Sb

12 Central States, Southeast and Southwest Areas Health and Welfare Fund Active Plan Statement of Changes in Net Assets {In thousands) March Three Months Ended March Revenue: Contributions 23,12 694,5 Recognized portion of UPS lump sum 6,126 18,378 Total revenue 236, ,878 Benefits and expenses: Benefits 251, ,67 TeamCare administrative fees 6,15 18,691 General and administrative expenses 6,82 17,64 Total benefits and expenses 263,624 73,362 Operating gain{loss) {27,486) (17,484) Retiree Plan Funding Net investment income(loss) 9,56 85,33 Change in net assets {17,926) 67,846 NET ASSETS: Beginning of period 4,778,36 4,692,588 End of period 4,76,434 4,76,434 Years Ended 216 (1) 215 3,14,932 2,972,722 85,812 98,112 3,226,744 3,7,834 2,518,29 2,324,45 74,53 7,336 69,788 64,17 2,662,5 2,458, , ,941 (173,) (22,) 173,81 {4,66} 564, ,875 4,127,813 3,739,938 4,692,588 4,127,813 Note(s): ( 1) Does not include final year end adjustments. 5c

13 Central States, Southeast and Southwest Areas Health and Welfare Fund Retiree Plan Statement of Changes in Net Assets (In thousands) March Three Months Ended March Contributions 2,625 61,581 Benefits and expenses: Benefits 11,88 32,649 TeamCare administrative fees General and administrative expenses Total benefits and expenses 12,449 34,371 Operating gain(loss) 8,176 27,21 Retiree Plan Funding Transfer Net investment income(loss) 765 6,627 Change in net assets 8,941 33,837 NET ASSETS: Beginning of period 377, ,319 End of period 386, ,156 Years Ended 216 (1) , ,727 15,998 3,559 3,237 3,319 2,95 127,65 112,185 (17,32) (111,361) 173, 22, 8,366 (187) 164,64 18, ,255 79,83 352, ,255 Note(sl: (1) Does not include final year end adjustments. 5d

14 Central States, Southeast and Southwest Areas Health and Welfare Fund Statement of Cash Receipts and Disbursements (In thousands) Operations: Contributions Benefits paid, net ( 1 ) March , ,4 (22,387) {222,65} 52,59 18,939 Three Months Ended March ,88 778,29 {67,437} {619,695} 151, ,595 Payroll Employee benefits Fees, services and software (primarily TeamCare) Rent Office Other Net from operations (3,265) (2,552) (1,429) (1,341) (6,917) (6,772) (262) (255) (61) (541) {254} 1,996 {12,737) {9,465} 39,772 9,474 (9,219) (8,411) (4,61) (4,359) (22,91) (2,179) (786) (763) (1,981) (2,218) 1,53 3,225 {37,184} {32,75} 114, ,89 Investments, net (39,837} {9,386} {114,624} {125,763} Change in cash (65) 88 (157) 127 Cash: Beginning of period End of period ===== NoteCsl: (1) Includes change in overdraft of: 792 (15) 1, a

15 Central States, Southeast and Southwest Areas Health and Welfare Fund Statement of Cash Receipts and Disbursements (In thousands) Operations: Contributions UPS lump sum Benefits paid, net ( 1) 216 3,179,35 {2,622, 186) 557, ,924,85 {2,338,29) 586,515 Years Ended 214 2,9,387 1,713,87 {1,615, 15) 2,18, ,288,752 {1, 117,59) 171,693 Payroll Employee benefits Fees, services and software (primarily TeamCare) Rent Office (2) Other Net from operations (35,247) (17,819) (82,165) (3,22) (8,79) 2,38 {144,24) 413,95 (31,516) (15,63) (77,97) (2,962) (19,335) (1,697) {149, 11) 437,45 (26,72) (13,732) (56,233) (2,852) (6,3) {5,677) {111,244) 1,996,863 (2,268) (1,154) (37,566) (2,117) (4,724) {4,877) {79,76) 91,987 Investments, net {412,72) (437,393) {1,996,82) {92,292) Change in cash (35) Cash: Beginning of period End of period Note(s): (1) Includes change in overdraft of: (2) Includes transitional reinsurance fee: 219 2,487 11,735 4, b

16 Central States Health and Welfare Fund Full Time Equivalents vs. Retirees June 214 Through February 217 2, 7, 18, 6,8 t/i w... LL 16, 14, 12, 6,6 6,4 6,2 6, en w ~ t== w ~ 1, 5,8 5,6 8, 5,4 6, Jun Dec Jun Dec Jun Dec 5,2 Feb ~ FTEs 11 RETIREES 7