Over the past 15 years, CATA’s trustee representation on the Local 701 Pension, Welfare, and 401(k) Trust Funds has delivered measurable financial progress, while continuing to ensure that these Funds are structured and funded appropriately, given the unique needs of every stakeholder in the industry, including CATA dealer members.
Pension Fund: From Critical to Nearly Fully Funded
When Chris Konecki, CATA executive vice president and full-time CATA employee, first became a trustee on the Local 701 Pension Fund 15 years ago, the Fund was in the “red zone,” meaning it was less than 80% funded and certified by its actuary as being in “critical” status. Today, the Fund is 98% funded, certified by its actuary as in the “green” zone (the healthiest designation the Fund can receive under the law), and projected to be fully funded within two years (and to remain fully funded for the foreseeable future).
Impact for Employers: Once fully funded, withdrawal liability will be eliminated for employers who sell their businesses, providing a significant financial and strategic advantage for the entire industry.
Second Pension Plan Prevented: In the most recent Local 701 contract negotiations, there was a serious risk that the union would seek to add a second pension plan, the IAM National Pension Fund. The IAM National Pension Fund is not as well funded as the Local 701 Pension Fund, and the addition of this second fund to the Local 701 agreements could have substantially increased each dealer’s potential withdrawal liability.
Through trustee-led negotiations, this second pension was kept out of the agreement, protecting dealers from additional long-term financial exposure and strengthening the Local 701 Pension Fund so that it can achieve full funding and continue to provide meaningful pension benefits to employees.
In addition, Konecki also serves as a trustee for the Local 731 Teamsters Pension and Welfare Funds, where the pension fund currently has zero withdrawal liability and remains very well funded.
Welfare Fund: Stabilized and Strengthened
The Local 701 Welfare Fund has also improved significantly since Konecki became a trustee. The Welfare Fund, like the Pension Fund, is now very well funded and is projected to remain well funded for the foreseeable future. Furthermore, following recent negotiations among the trustees, the Welfare Fund’s premium rates will include an assumed future investment return, which should result in lower annual healthcare premium cost increases beginning with the 2029 contract cycle.
The progress achieved over the past 15 years reflects steady, experienced leadership by Konecki and the CATA, focused on:
- Financial stability
- Risk reduction
- Long-term sustainability for every stakeholder, including CATA members and other employers
Strong benefit funds don’t happen by accident; they require experience, diligence and a commitment to protecting every stakeholder in the industry, including the dealers CATA represents. Furthermore, union negotiations don’t just affect unionized dealerships; they influence the broader market by helping set compensation standards and cost structures that impact both union and non-union dealerships.
Konecki balances this critical trustee role alongside his CATA leadership and Chicago Auto Show responsibilities with dedication and discipline. His passion for the dealer industry is evident in every role in which he serves, and his understanding of the industry (and of the Local 701 and Local 731 Benefit Funds) is second to none.
Fifteen years ago, the Local 701 Funds were in trouble. Today, they are strong, stable and positioned for full funding well into the future. That transformation reflects disciplined leadership and deep institutional knowledge. As the financial landscape continues to evolve, Konecki’s experience and expertise, developed over many years in this role, will remain essential to protecting the dealer industry, CATA members and their businesses.
