2023-11-14T15:05:41-07:00 2022-12-31 990 2022-01-01 362154936 CENTRAL STATES SOUTHEAST & SOUTHWEST AREAS HEALTH & WELFARE FUND CENT 8475189800 8647 WEST HIGGINS RD CHICAGO IL 606312803 Peter Priede Senior Director of Finance 8475189800 2023-11-14 1 1 11 1 AAL2 X 2022 2023-04-26 12:10:37Z THOMAS C NYHAN 8647 WEST HIGGINS ROAD CHICAGO IL 606312803 90720805501 0 X myteamcare.org X NON PROFIT TAFT HARTLEY 1950 IL To provide Health and Welfare benefits to participants. 8 8 786 0 0 0 0 0 4597689685 4927391014 334655560 212535931 912318 912318 4933257563 5140839263 0 0 3789886318 3740150619 75528364 79766701 0 0 0 134189837 139162812 3999604519 3959080132 933653044 1181759131 12662605531 12055420607 2861254043 2119153651 9801351488 9936266956 To provide Health and Welfare benefits to participants. 0 0 To provide medical, prescription and dental coverage to approximately 252,000 participants. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 40721 0 1 786 1 0 0 0 0 0 0 0 0 X 8 8 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X Central States SE & SW Areas Health and Welfare Fund Attn Bradley Grimes 8475189800 8647 West Higgins Rd Chicago IL 606312803 Thomas C Nyhan Executive Director 39 11 X 560876 167535 87986 John J Franczyk Jr General Counsel 34 16 X 275779 129779 88643 Robert Coco Deputy Chief Counsel; Secretary to Board 34 16 X 266526 125424 88194 Albert M Madden Senior Deputy General Counsel 30 20 X 224428 155958 87201 Steven Van Rossem Senior Director, TeamCare 34 16 X 221180 104084 78638 Peter Priede Senior Director, Employer Svcs/Pension/Finance 34 16 X 195523 92011 85566 Brad Berliner Deputy General Counsel 30 20 X 171544 119209 54842 Charles Lee Deputy General Counsel 30 20 X 166611 115780 53767 James P Eder Group Director, Chief Information Officer 34 16 X 188274 88599 54151 Carl E Snyder Chief Technology Officer 38 12 X 209854 66270 54099 Timothy C Reuter Deputy General Counsel 30 20 X 148507 103199 55537 Scott B Robbins Director, Human Resources 34 16 X 134048 63081 34028 Patrick Moroney Group Director/CIO 34 16 X 126612 59582 16818 Mark F Angerame Trustee 10 10 X 19048 19048 0 Gary Dunham Trustee 10 10 X 19048 19048 0 George J Westley Trustee 10.00 10.00 X 19048 19048 0 Gary F Caldwell Trustee 10 10 X 0 0 0 Christopher J Langan Trustee 20 0 X 0 0 0 Trevor Lawrence Trustee 10 10 X 0 0 0 Robert Whitaker Trustee 10 10 X 0 0 0 Charles A Whobrey Trustee 10 10 X 0 0 0 2946906 1447655 839470 97 0 1 0 Blue Cross Blue Shield of Illinois 1001 E Lookout Drive Richardson TX 75082 Administration 71569765 Conifer Value-Based Care LLC 3560 Dallas Parkway Frisco TX 75034 Administration 12221881 Humana Dental Insurance Company 500 W Main Street Louisville KY 40202 Administration 10930027 Multiplan Inc 535 East Diehl Road Suite 100 Naperville IL 60563 Administration 7145083 CaremarkPCS Health LLC One CVS Drive Woonsocket RI 02895 Administration 2608098 59 0 H&W Employer Contributions 525100 4871280958 4871280958 0 0 H&W Participants Contributions 525100 56110056 56110056 0 0 0 0 0 0 4927391014 223228422 223228422 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 85569273747 0 85579966238 0 -10692491 0 -10692491 -10692491 0 0 Miscellaneous 900099 912318 912318 0 0 0 0 0 0 912318 5140839263 5140839263 0 0 0 0 0 3740150619 3564955 0 46910374 11300520 14252690 3738162 0 276009 180000 0 0 13620603 2582860 0 5084365 11269346 0 1621645 257297 0 57310 0 0 3560987 495573 Dues, Publications and Subscriptions 96018 PCORI excise tax 1190337 TeamCare Provider Network Fees 98846630 23832 3959080132 0 0 0 179727 78498 71153522 197286329 507565703 640042185 3342235 2537599 84021101 22085805 64599531 61935296 9937315206 9830609169 2078449607 1322931531 12662605531 12055420607 30678464 30472484 2830575579 2088681167 2861254043 2119153651 X 0 0 0 0 9801351488 9936266956 9801351488 9936266956 12662605531 12055420607 1181759131 -1046843663 0 0 0 0 X 0 1 X 1 0 0 6104006 6104006 0 52251092 4448296 47802796 0 0 0 0 0 22109469 16659349 5450120 0 3556534 978160 2578374 61935296 Assets Held Under Securities Lending Agreement 1322931531 1322931531 0 Payables for Securities Purchased 32498413 Liabilities to return Collateral Under Securities Lending Agreement 1322931531 Estimated Claims Liability 715924000 Checks Drawn Against Future Deposits 17327223 2088681167 X 4093995600 -1046843663 0 0 0 -1046843663 5140839263 0 0 0 5140839263 3959080132 0 0 0 0 0 3959080132 0 0 0 3959080132 Schedule D, Part X, Line 2 The Internal Revenue Service ("IRS") issued an exemption letter, dated September 11, 1987, stating that the Fund, as then designed, was exempt from federal income tax under Section 501 (c) (9) of the Internal Revenue Code. Fund management believes the Fund, as amended, continues to qualify and to operate in accordance with applicable rules and regulations; therefore, no provision for income taxes is included in these financial statements. Accounting principles generally accepted in the United States of America require Fund management to evaluate tax positions taken by the Fund and recognize a tax liability (or asset) if the Fund has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Fund is subject to routine audits by taxing jurisdictions; however, there are currently no audits in progress for any tax periods. Fund management believes it is no longer subject to income tax examinations for years prior to 2019. X X X X 0 0 0 Thomas C Nyhan Executive Director 424339 126751 115500 34500 21037 6284 53440 7048 21173 6325 635489 180908 0 0 John J Franczyk Jr General Counsel 249832 117568 22100 10400 3847 1811 51406 9739 18699 8799 345884 148317 0 0 Robert Coco Deputy Chief Counsel; Secretary to Board 239428 112672 20400 9600 6698 3152 51406 9740 18393 8655 336325 143819 0 0 Albert M Madden Senior Deputy General Counsel 199450 138600 15635 10865 9343 6493 48789 12564 15250 10598 288467 179120 0 0 Steven Van Rossem Senior Director, TeamCare 197241 92819 20400 9600 3539 1665 42819 9731 17740 8348 281739 122163 0 0 Peter Priede Senior Director, Employer Svcs/Pension/Finance 174978 82342 13600 6400 6945 3269 50925 9513 17087 8041 263535 109565 0 0 Brad Berliner Deputy General Counsel 158952 110459 9440 6560 3152 2190 17531 12183 14826 10302 203901 141694 0 0 Charles Lee Deputy General Counsel 155256 107890 9145 6355 2210 1535 17180 11939 14542 10106 198333 137825 0 0 James P Eder Group Director, Chief Information Officer 173792 81785 10200 4800 4282 2014 20062 9441 16761 7887 225097 105927 0 0 Carl E Snyder Chief Technology Officer 192738 60865 7980 2520 9136 2885 22383 7068 18732 5916 250969 79254 0 0 Timothy C Reuter Deputy General Counsel 139475 96923 7375 5125 1657 1151 16602 11537 16165 11233 181274 125969 0 0 Scott B Robbins Director, Human Resources 130815 61560 0 0 3233 1521 13535 6369 9604 4520 157187 73970 0 0 Patrick Moroney Group Director/CIO 105193 49503 20400 9600 1019 479 11141 2943 1859 875 139612 63400 0 0 Mark F Angerame Trustee 19048 19048 0 0 0 0 0 0 0 0 19048 19048 0 0 Gary Dunham Trustee 19048 19048 0 0 0 0 0 0 0 0 19048 19048 0 0 George J Westley Trustee 19048 19048 0 0 0 0 0 0 0 0 19048 19048 0 0 Gary F Caldwell Trustee 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Christopher J Langan Trustee 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Trevor Lawrence Trustee 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Robert Whitaker Trustee 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Charles A Whobrey Trustee 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Form 990, Part VI, Section B, Line 11b A draft of the Form 990 filing is reviewed by the Executive Director, General Counsel and Senior Director of Finance. The Fund's Trustees are provided a final version of the Form 990 before it is filed with the IRS. Form 990, Part VI, Section B, Line 12c The organization (the "Fund") is subject to a Consent Decree entered by the United States District Court for the Northern District of Illinois Eastern Division. This Consent Decree requires the Fund's trustees and employees to comply with ERISA, including the avoidance of conflicts constituting a breach of fiduciary duty or prohibited transaction under that statute. The Trustees and employees are provided a copy of the Consent Decree. Furthermore, pursuant to the Consent Decree, the Court has appointed an Independent Special Counsel who reports to the Court and to the U.S. Department of Labor and who monitors the Fund with respect to compliance with the Consent Decree. On June 9, 2023, the federal court overseeing the Consent Decrees against both the Fund and the Pension Fund dissolved the Consent Decrees. In dissolving the Consent Decrees, the Court stated "As the Department [of Labor], the ISC [Independent Special Counsel], and GAO [Government Accountability Office] have all acknowledged, there has been no indication or hint of wrongdoing or ERISA violations since the entry of the Consent Decrees." The Fund also provides all employees with a written policy concerning the avoidance of conflicts of interest; this policy specifically provides that any violation of the policy can be grounds for termination. The Fund's management and Internal Audit Department monitor compliance with this conflicts policy. Management is assisted in this process through periodic meetings with the Fund's auditors specifically focused on methods to prevent and detect fraud or conflicts. Form 990, Part VI, Section B, Line 15 The compensation of the organization's (the "Fund's") Executive Director was determined by the Fund's Board of Trustees, based upon a review of comparability data, including published compensation surveys, Form 990 data from other funds and the existence of an employment opportunity with another entity competing for the Executive Director's services. The Board of Trustees' compensation determination with respect to the Executive Director was documented in a contract of employment. As with all contracts with service providers entered by the Fund, the Fund's Consent Decree (see Form 990, Part VI, Section B, Line 12c) and ERISA require that the Executive Director's compensation be fixed at a reasonable level. As noted, under the Consent Decree, an Independent Special Counsel has been appointed by the Court to monitor the Fund's compliance with the Consent Decree. The compensation of officers and key employees of the Fund was determined by the Executive Director, in consultation with the Board of Trustees, based on comparability data, including published salary surveys and Form 990 data from other funds. The compensation determination with respect to officers and key employees was documented in forms executed by the Executive Director. Form 990, Part VI, Section C, Line 19 The organization's (the "Fund's") Plan Document and Trust Agreement, as well as reports of the Fund's Independent Special Counsel (see Form 990, Part VI, Section B, Line 12c) are available on the Fund's website. The Fund's publicly filed annual report (Form 5500) is available to participants of the Fund upon request. The Fund's conflict of interest policy, to the extent it is imbedded in the Consent Decree governing the Fund (see Form 990, Part VI, Section B, Line 12c), is also available to participants upon request. Central States SE and SW Areas Pension Fund 8647 West Higgins Road Chicago IL 606312803 366044243 Defined Benefit Pension Plan IL 501 N/A 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 Schedule R, Part II Part IV: We note that the instructions for 2011 and subsequent years' filings have eliminated the prior 10% minimum threshold for providing information on employers that make contributions to a welfare benefits trust such as the Central States Fund. To comply with this change, the Fund is confronted with trying to collect and analyze information for more than 890 contributing employers. We respectfully decline to provide such a voluminous list at this time primarily because: (1) The Fund does not have, or have ready access to, significant portions of this information, such as the type of entity or tax classification of each contributing employer and, over its 70 years of existence, the Fund has had no reason to collect it for its regular operations. (2) Contributing employers to the Fund are not "related" to the Fund in any material way as a legal or factual matter. All decisions concerning governance of the Fund are made by the eight-member Joint Board of Trustees pursuant to ERISA and the Taft-Hartley Act. Only approximately 15 employers (either directly or through an employer association) have the authority to appoint any of the four management-appointed Trustees of the Fund. (Two of the four management-appointed Trustees are appointed by contributing employers or employer associations, and two are appointed by the other management Trustees.) All operations of the Fund are carried out by employees of the Fund itself with no influence by or assistance from contributing employers. (3) Contributing employers, most of whom are not publicly traded companies, may legitimately wish to not have this non-public information - including their EIN, form of organization and "control" information - disclosed to the Service, especially in view of the availability of Form 990 information to the general public. (4) The Fund is particularly concerned that unrelated parties will use information concerning contributing employers to the Fund to "cross-identify" contributing employers to the Central States, Southeast and Southwest Areas Pension Fund (which is governed by virtually the same Board of Trustees as the Central States Health & Welfare Fund) for the purpose of facilitating lawsuits or potential anti-union activities that result in damage to both Funds. Such identifying information is frequently sought to undermine contributions to the Funds or to otherwise interfere with their operations and is therefore closely guarded by the Central States Funds. There is little doubt that such parties would attempt to use such information to their advantage and to the potential detriment of the Funds. (5) Further, commercial health insurance carriers who are effectively competitors of the Central States Health & Welfare Fund could easily use the Fund's private and proprietary list of its contributing employers (which is comparable to a customer list for the Fund) in an effort to poach those contributing employers from the Fund and to persuade them to cover their employees by means of commercial health insurance instead. This could result in grave harm to the Fund. In summary, we respectfully submit that these concerns outweigh any conceivable interest the Service may have in collecting such voluminous contribution information. Ultimately, every dollar the Fund spends on reporting or other compliance tasks is one less dollar available to fund health and welfare benefits for its approximately 252,000 participants and their families, and for the day-to-day administration of the Fund.