Response to Wiley
First off.....ditto on maxing out the 401k.
Wiley, as for your questions,,,,to be quite honest with you, Im in over my head when it comes to researching pension questions. Cornell University has the entire United States Legal code online with a
chapter dedicated to government oversight of pension plans. This stuff is about as dry and as complicated as it gets, so I dont know how much insight I'll be able to offer. Two points that my uneducated assesment gleaned while reading over this document:
1. There is a process established that would force Teamsters to transfer to APWA monies contributed by UPS for its employees who are still working and would be represented by the new bargaining agent. This would allow a worker to keep his contributions together in one place until he/she retires.
(
Transfers between multiemployer plans and single employer plans,,,,
Transfers pursuant to change in bargaining representative)
2. Should the above occur, then UPS would still be partially liable for maintaining adequate funding of the "old plan". Due to the complexity of the code, I cant honestly say I understand the extent to which UPS would continue to be liable. But its obvious from my reading that UPS would still be required to pay into Teamster funds after a change in bargaining agents. (
Employer withdrawals)
APWA's response to these questions sound very similar. Please understand that the following statements are based on conversations with Skillman and Eason. Their lawyers have explained to them that once APWA becomes the agent, UPS's liability to the Teamster funds is limited to plan participants who signed up
prior to the decertification. Thus UPS would not have to guarantee the benefits of
new hires from any company signing into a Teamster pension following the decert. UPS would continue to have liability for any unfunded benefits of
all participants part of a Teamster plan before the decert--whether they worked for UPS or
ANY OTHER COMPANY that participates in Teamster pensions...a liability that must be met up to the point that it would bankrupt UPS. UPS's liability extends well beyond its own employees, hence their interest in distancing themselves from this money pit. Eason said that its possible to verify the extent of UPS's legal obligation to the plan with corporate UPS themselves. I'll get a UPS phone number from him should anyone be interested....just forgot to include that in my emails.
The answer to this question lies in whose lawyers you believe. Teamsters, UPS, or APWA. One independent source would be the US Department of Labor. The number for pension related questions is (202) 219-8776. Once I recover from staring at this computer, I may give it a try.
Give me about $80,000 and four years to get my law degree, and i might be of more help to you on this subject.
nospin
