Central States Pension Reduction Plan Letter announces Cuts - October 2015

Discussion in 'UPS Discussions' started by The Son of Sam, Oct 3, 2015.

  1. The Son of Sam

    The Son of Sam Active Member

    The Central States Pension Trustees – employer and Teamster – have hit retirees and active Teamsters with the worst possible pension cut proposal.

    The Cuts

    It will take more time to sort out the details of the Proposed “Rescue Plan” which was submitted on September 25 to the Treasury Department, but not yet released for Teamsters to see.

    According to a press release from Central States:

    • So-called “orphans” who worked for companies such as CF, Preston, etc will have their pensions slashed to 110% of the PBGC maximum. For a Teamster collecting $3000 presently, this could mean a cut down to about $1200. This is unconscionable.

    • If you have pension credits from an “orphan” company and also credits from a surviving company, the cut will be proportionally between the two levels.

    • UPS transfer group: UPS Teamsters who retired in 2008 or later will be protected by the “make whole” clause in the UPS contract (UPS will have to make up for pension cuts as long as that clause stays in the contract). But those who retired before 2008 will suffer cuts.

    • Reemployment Rule. No restrictions for those already retired. For those who retire after October 1, 2015, there will be relaxed restrictions.

    • Accrual rate for active Teamsters will be reduced for 1% of annual employer contribution to .75%.

    • Phase-out early retirement. Between 2021 and 2025 the age for retirement without reduction of benefits will rise from 62 to 65.
    See also the Fund’s Summary Guide to the pension cuts.

    I wonder if the Central States freight, grocery, construction etc members who were Junior's strongest supporters will be yelling all across the Bally's Hotel: awful....awful...awful...awful...awful...awful like they did at the 1996, 2001, 2006 and 2011 conventions. I pretty much doubt it!



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    The orphaned retirees that are currently getting $3000 a month will see a $1200 pension cut.

    An orphaned retire is someone who retired and the company they worked for no longer exists or stopped paying into the fund.

    Where are all those Hoffaites that claimed this was all TDU spin? For 10 years Hoffa refused to address this issue and was hoping that it wouldn't come until after the election next year.

    I wonder how the 65,000 affected active members of the fund will vote next year? Most likely not for awful!
     
    Lasted edited by : Oct 3, 2015
  2. Mugarolla

    Mugarolla Light 'em up!

    A retiree from a company that paid their pension withdrawal liability, as UPS did, are not considered orphaned retirees under the proposed pension cuts.

    The Treasury department also has 225 days to review these cuts. Could still be awhile.

    http://www.pionline.com/article/201...pension-fund-seeks-permission-to-cut-benefits
     
  3. The Son of Sam

    The Son of Sam Active Member

    Retiree eligibility age will jump up to 65 years old too, saddening.
     
  4. upschuck

    upschuck Avatar bet gone wrong

    For those who wanted UPS to pay more to shore up your pension, that money would have come from the raise that you would not have gotten to pay for companies retirees that did not pay their share for contributions. That would not have gone over well.

    If you want to blame anyone, you would have to blame those that negotiated the supplements that allowed for full credit and only paid none to partial monies. No fund can last like that.
     
  5. tireknocker

    tireknocker Member

    Orphans will get a total of 1200 a cut of 1800. That's how I read it!!
     
  6. realbrown1

    realbrown1 Annoy a liberal today. Hit them with facts.

    Will see an $1,800 cut to a pension to $1,200.

    Imagine one month your monthly pension is $3000 and next month it's $1200.

    That is severe.

    Where are wide and lead?

    Shouldn't they be blaming this on TDU, or T.S. or R.C. by now?
     
  7. The Son of Sam

    The Son of Sam Active Member

    The Central States Pension Trustees – employer and Teamster – have hit retirees and active Teamsters with the worst possible pension cut proposal.

    The Cuts

    It will take more time to sort out the details of the Proposed “Rescue Plan” which was submitted on September 25 to the Treasury Department, but not yet released for Teamsters to see.

    According to a press release from Central States:

    • So-called “orphans” who worked for companies such as CF, Preston, etc will have their pensions slashed to 110% of the PBGC maximum. For a Teamster collecting $3000 presently, this could mean a cut down to about $1200. This is unconscionable.
    • If you have pension credits from an “orphan” company and also credits from a surviving company, the cut will be proportionally between the two levels.
    • UPS transfer group: UPS Teamsters who retired in 2008 or later will be protected by the “make whole” clause in the UPS contract (UPS will have to make up for pension cuts as long as that clause stays in the contract). But those who retired before 2008 will suffer cuts.
    • Reemployment Rule. No restrictions for those already retired. For those who retire after October 1, 2015, there will be relaxed restrictions.
    • Accrual rate for active Teamsters will be reduced for 1% of annual employer contribution to .75%.
    • Phase-out early retirement. Between 2021 and 2025 the age for retirement without reduction of benefits will rise from 62 to 65.
    See also the Fund’s Summary Guide to the pension cuts.

    I wonder if the Central States freight, grocery, construction etc members who were Junior's strongest supporters will be yelling all across the Bally's Hotel: awful....awful...awful...awful...awful...awful like they did at the 1996, 2001, 2006 and 2011 conventions. I pretty much doubt it!
     
  8. upschuck

    upschuck Avatar bet gone wrong

    That doesn't help CSPF at all, UPS pays 100% of payouts until 65 anyways. YOS pensions don't face reductions based on age.
     
  9. UPSmechanicinblue

    UPSmechanicinblue Active Member

    This is sad news for a lot of retirees and there are many that I know personally- Action should have been taken along time ago. How I don't know, but this is far worse than I predicted.
    Don't really think anyone who had ran for Teamsters president or had gotten there could of changed the out come. All they where doing is pushing the cuts further and further down the road making them worse. There was Carey who gave the huge increase years ago when we new it was way underfunded and on a decline, Hoffa pulled us out of Central States and that's exactly what the majority of UPS members wanted done. The fund has been on a decline for many years along with the percentage of the union workforce. There is now way they where going to organize new people and put them into a failing pension fund.
     
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  10. Ms.PacMan

    Ms.PacMan Well-Known Member

  11. oldupsman

    oldupsman Well-Known Member

    • Do you know what those cuts will be for UPS pensioners?
     
  12. 10 point

    10 point Well-Known Member

    "Proposed" cuts and list of orphaned companies.
     

    Attached Files:

  13. Ms.PacMan

    Ms.PacMan Well-Known Member

    According to the letter I posted upsers who retired after 2008 are in the transfer group or tier 3. The cuts will not exceed 40% and they will be made whole by UPS.

    UPS retirees before 2008 are tier 2 and their pension cuts will not exceed 50% (UPS will not make up the difference).
     
  14. Lead Belly

    Lead Belly BANNED

    This was a bad situation. It was only possible to make changes when congress and the senate passed the omnibus. Changes couldn't be made till this crap budget was passed and signed into law by Obama. The GOP would all be for bailing out the mortgage industry and credit card companies but older Americans who should be covered not so much. I hate the GOP. These good union members deserved better.
     
  15. Mugarolla

    Mugarolla Light 'em up!

  16. BigUnionGuy

    BigUnionGuy Got the T-Shirt



    Everyone's thoughts ?
     
  17. wide load

    wide load Well-Known Member

    They didn't blame H in the video. TDU must be mad.
     
  18. Jkloc420

    Jkloc420 Well-Known Member

    So how does this work for people who aren't retired and have so many years in central states and so many in pension now. Been at ups since 2002 so I have about 6-7 years in central states. How much of a got do we get.
     
  19. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You will be completely covered by the UPS Pension Plan.
     
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  20. crazyeyes

    crazyeyes New Member

    I herd them blame everyone but themselves for this. How much does Thomas Nyhan (Executive Director and General Counsel Central States Southeast and Southwest areas pension fund) make a year ?. I also wonder how much they pay to run the fund, I have read some unbelievable numbers.



    I like this answer better