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Central states-what happens when???
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<blockquote data-quote="brownIEman" data-source="post: 1473792" data-attributes="member: 14596"><p>Am I missing something here? Did UPS get a carve out to protect it from its own stupid generosity?</p><p></p><p>As I understand it: </p><p>UPS wanted out of the central states multi-employer fund. There are 2 hurdles to cross for this to occur - 1 - The bargaining unit has to agree to it as part of a negotiation - 2 - The employer leaving a multi-employer fund has to pay the full liability the fund has incurred for current retirees and any calculated benefits earned by current employees as of the date the employer leaves the plan. In essence, what it would owe on top of what it has already paid to fully fund the calculated pension payments going to all of its employees at that time.</p><p></p><p>UPS did both of these - and in order to secure number one, it went beyond its obligation under step 2. It said to the IBT, we will pay 6 billion plus into the plan as calculated to cover our employees in perpetuity - AND, we will promise that if you running the plan EFF up with that money and cannot afford to pay our employees what they are owed and SHOULD be covered by the money UPS paid in, UPS will make up that difference as well. Giving the plan a blank check to waste away its funds - </p><p></p><p>The question I have, is how much discretion did the IBT and others administering this plan have to reduce payments if they did lose too much of the funds they were entrusted with (or not make enough with them)?</p><p></p><p>What I am thinking is that the bill as originally conceived altered the rules to allow the funds to reduce payments so as not to go insolvent and in a domino action take the insurance safety net into bankruptcy with them. I am also thinking the IBT was thinking "This is great, we can reduce pensioners payments, so we can just reduce the UPS pensioners payments FIRST, which UPS will have to make up per the agreement - We get to save the plan on the back of UPS, its even better than if they had stayed in because their liability is greater the more we reduce payments to their retirees to allow more for the others, on top of the 6 billion they gave us to get out of that liability - AWESOME!" And UPS managed to get in language that said, no, you can reduce payments to retirees, but you have to reduce UPS retirees payments LAST. Which of course makes Hoffa and co. none too happy.</p><p></p><p>Which of course leads me back to the question I have been asking for the last 5 or 6 years, where did that 6 billion go?!?!?! That should be UPS' only response to Hoffa's whining about this law.</p></blockquote><p></p>
[QUOTE="brownIEman, post: 1473792, member: 14596"] Am I missing something here? Did UPS get a carve out to protect it from its own stupid generosity? As I understand it: UPS wanted out of the central states multi-employer fund. There are 2 hurdles to cross for this to occur - 1 - The bargaining unit has to agree to it as part of a negotiation - 2 - The employer leaving a multi-employer fund has to pay the full liability the fund has incurred for current retirees and any calculated benefits earned by current employees as of the date the employer leaves the plan. In essence, what it would owe on top of what it has already paid to fully fund the calculated pension payments going to all of its employees at that time. UPS did both of these - and in order to secure number one, it went beyond its obligation under step 2. It said to the IBT, we will pay 6 billion plus into the plan as calculated to cover our employees in perpetuity - AND, we will promise that if you running the plan EFF up with that money and cannot afford to pay our employees what they are owed and SHOULD be covered by the money UPS paid in, UPS will make up that difference as well. Giving the plan a blank check to waste away its funds - The question I have, is how much discretion did the IBT and others administering this plan have to reduce payments if they did lose too much of the funds they were entrusted with (or not make enough with them)? What I am thinking is that the bill as originally conceived altered the rules to allow the funds to reduce payments so as not to go insolvent and in a domino action take the insurance safety net into bankruptcy with them. I am also thinking the IBT was thinking "This is great, we can reduce pensioners payments, so we can just reduce the UPS pensioners payments FIRST, which UPS will have to make up per the agreement - We get to save the plan on the back of UPS, its even better than if they had stayed in because their liability is greater the more we reduce payments to their retirees to allow more for the others, on top of the 6 billion they gave us to get out of that liability - AWESOME!" And UPS managed to get in language that said, no, you can reduce payments to retirees, but you have to reduce UPS retirees payments LAST. Which of course makes Hoffa and co. none too happy. Which of course leads me back to the question I have been asking for the last 5 or 6 years, where did that 6 billion go?!?!?! That should be UPS' only response to Hoffa's whining about this law. [/QUOTE]
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