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UPS Retirement Topics
Central States (IBT or Teamster) Pension Plan Goes Insolvent??????
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<blockquote data-quote="JonFrum" data-source="post: 1042147" data-attributes="member: 18044"><p>You will be eligible for Medicare when you turn 65. You don't have to wait until age 66 and a half.</p><p></p><p>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.</p><p></p><p>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 <u>loans</u> 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.</p><p></p><p>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.</p></blockquote><p></p>
[QUOTE="JonFrum, post: 1042147, member: 18044"] 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 [U]loans[/U] 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. [/QUOTE]
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Central States (IBT or Teamster) Pension Plan Goes Insolvent??????
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