Central States (IBT or Teamster) Pension Plan Goes Insolvent??????

Discussion in 'UPS Retirement Topics' started by tigergirl57, Oct 14, 2012.

  1. tigergirl57

    tigergirl57 New Member

    Does anyone know if UPS will make up the difference in their retirement when the Central States (IBT/Teamster) Retirement plan goes Insolvent? Trying to retire and find out this information. No one at Central States or UPS says they can answer this question right now. Is anyone other than me concerned about this? According to the article in the last Teamster paper we received, if you get $3,000 a month from Central States/IBT, you will only get $1,005 a month from the government once the plan declares they are insolvent. The UPS portion of your retirement is solid and will not be affected.

    I know that at the age of 65 (normal retirement age), you are supposed to get 2 checks for your retirement. One from UPS and one from Central States/IBT/Teamster. If you had 35 years when you retire and currently get $3,500 a month, your retirement will decrease to $1,505 at the age of 65. Central State/IBT $1,005 and UPS $500 a month. This is also when your retiree insurance is dropped.

    If the retirement plan is declared insolvent, the retiree insurance might be eliminated? Does anyone know the answer to this? I know that when a company that I worked for declare insolvency, the retirees had their retirement decreased significantly(1/3 of original amount) and paid from the government, PLUS they lost their retiree insurance and had to go get an individual plan because most of them were too young to qualify for Medicare yet (age 65 or 66.5 for some of us).

    Does anyone know who I can contact at UPS to find out if they are going to make up the difference in the retirement funds, even past the age of 65 once Central States/IBT/Teamsters declare insolvency. Everyone we have spoke with at UPS and Central States have not been able to give us any answers. THIS IS FAR TOO IMPORTANT A MATTER FOR NO ONE TO NOT FIND OUT THE ANSWER! THANKS!!!
     
  2. softshoe

    softshoe Member

  3. downtime8763

    downtime8763 Member

    And one has to worry if this will change with the next contract,glad I'm out and loving it !
     
  4. satellitedriver

    satellitedriver Moderator Staff Member

  5. JonFrum

    JonFrum Member

    You will be eligible for Medicare when you turn 65. You don't have to wait until age 66 and a half.

    You seem to believe Central States will pay your retirement proir to age 65. It won't. Central States begins retirement payments at age 65.

    When Central States becomes insolvent it will still pay monthly benefits. But the benefit amount will be less and less as each month passes. They will pay you as much as they can afford out of the funds they have available. So your check might be five dollars short the first month, and ten dollars short the next, and so on. The Government (PBGC) doesn't get involved until the monthly checks dwindle down below the PBGC-guaranteed amount, which is about a third of the full amount due. In that case, the PBGC loans the Plan the shortfall amount to allow it to pay only the guaranteed amount. The Government doesn't take over the Plan, or give the Plan any money.

    UPS guarantees your full pension due from Central States after age 65, for the duration of the current Contract. But that's not saying much. Central States won't be insolvent now or during the next few years. When it does become insolvent, the shortfall will be small at first, then slowly grow larger. What you really need is a guarantee for the decades in the future when the shortfall gets bigger and bigger.
     
  6. raceanoncr

    raceanoncr Well-Known Member

    Just heard from current driver/friend yesterday that at general meeting last Sun, they announced Central will be completely dry in ten yrs. No, I didn't go. I'm retired. Don't know if this announcement is official either. Just what I heard from him.

    Heard they said they are trying to be taken over by other funds. Funny, who in their right mind would volunteer for THAT? Let's see....you've been mismanaging this for eternity, blaming it on the economy, and when the econcomy and everyone else's individual funds turn around, you're STILL losing money?

    And how many other funds around the country are in position to do this anyway? Oh, I know some are doing very well. Would THEY want to take over a boat anchor?

    We just better hope that UPS, out of the goodness of their heart, will make up the difference..........:rofl: