Good explanation until If one is retired solely through Central States, which is the poster child of the new law, the change in ERISA will allow the funds to reduce retirees benefits & UPS has no contractual obligation to make up the deficit.
However, if one also worked as a participant in the new
Teamster-UPS Jointly Trusteed Single Employer Plan then UPS pays till 65. At age 65, Central States pays the portion you worked under that multi-employer plan and UPS pays the portion you worked under the new single employer plan. UPS is contractually obligated, for sure, under existing contract to make up any deficit due to Central States inability to pay out. The issue I'm uncertain about is the longevity of the obligation (has the length already been bargained for) or need it be bargained for every contract negotiation.
Does anyone know how long UPS is obligated to make up Central States or PGBC pension deficits if one worked under the new Teamsters-UPS single employee plan created in 2007? By the way, ten years earlier, this new plan had minimal support and we were on strike partly because of it. Of course no one thought Congress would devalue ERISA either.