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Central States Pension - UPS will not cover difference ?
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<blockquote data-quote="Ms.PacMan" data-source="post: 1144906" data-attributes="member: 4656"><p>Spicy - benefits accrued from the CS plan are the number of service credits you had in before the new plan IBT/UPS plan. We all got a statement detailing how many pension credits we had accrued under the old plan - remember?</p><p></p><p>What you are talking about (confusing this with) is the contributory pension credits (1801 hrs per year) under the new IBT/UPS plan. The old CS plan gave a service pension credit for only one hr per week or month (don't know which without looking it up) and the new pension gives a full years credit for 1801 hrs worked (prorated if less than 1801). They agreed to figure it up both ways and pay the greater of the two. This has nothing to do with the paragraph you quoted.</p><p></p><p>The new pension deducts 6% for every year you are under 65 - it does not guarantee an "and out pension <u>at any age"</u> like the old CS pension The contributory pension pays more. Same contribution to the old and new plan but more money goes to the individual because it's a single employer plan vs. a big pot with a predetermined amount - $3,000, shared among many employees at different employers. So you end up earning a bigger pension even with the 6% deduction.</p><p></p><p>Under the old CS plan Joe, 52 and Ron, 61 both work 30 years and collected $3,000. Under the new IBT/UPS pension plan (never having worked under the CS plan) their 30 year pensions will not be identical because they will each take a 6% hit for every year they are under age 65.</p><p></p><p>The service pensions, AT ANY AGE, is the guarantee that UPS agreed to continue to pay (ignoring the 6% deduction) - up to normal retirement age (65). At age 65 we will all begin to receive one check from the IBT/UPS plan and one check from the CS plan. If the CS plan has either been taken over by PBGC or is allowed by Congress to reduce red zone pension plan pymts in 2015 then UPS will NOT offset this amount after age 65.</p></blockquote><p></p>
[QUOTE="Ms.PacMan, post: 1144906, member: 4656"] Spicy - benefits accrued from the CS plan are the number of service credits you had in before the new plan IBT/UPS plan. We all got a statement detailing how many pension credits we had accrued under the old plan - remember? What you are talking about (confusing this with) is the contributory pension credits (1801 hrs per year) under the new IBT/UPS plan. The old CS plan gave a service pension credit for only one hr per week or month (don't know which without looking it up) and the new pension gives a full years credit for 1801 hrs worked (prorated if less than 1801). They agreed to figure it up both ways and pay the greater of the two. This has nothing to do with the paragraph you quoted. The new pension deducts 6% for every year you are under 65 - it does not guarantee an "and out pension [U]at any age"[/U] like the old CS pension The contributory pension pays more. Same contribution to the old and new plan but more money goes to the individual because it's a single employer plan vs. a big pot with a predetermined amount - $3,000, shared among many employees at different employers. So you end up earning a bigger pension even with the 6% deduction. Under the old CS plan Joe, 52 and Ron, 61 both work 30 years and collected $3,000. Under the new IBT/UPS pension plan (never having worked under the CS plan) their 30 year pensions will not be identical because they will each take a 6% hit for every year they are under age 65. The service pensions, AT ANY AGE, is the guarantee that UPS agreed to continue to pay (ignoring the 6% deduction) - up to normal retirement age (65). At age 65 we will all begin to receive one check from the IBT/UPS plan and one check from the CS plan. If the CS plan has either been taken over by PBGC or is allowed by Congress to reduce red zone pension plan pymts in 2015 then UPS will NOT offset this amount after age 65. [/QUOTE]
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