Dreaded Pension Funding Level Letter

Discussion in 'UPS Retirement Topics' started by brownmonster, May 8, 2010.

  1. brownmonster

    brownmonster Man of Great Wisdom

    Members of local 344 here in Wisconsin recieved a letter this week informing us our Pension was in the yellow meaning it is less than 80% funded. We are to recieve another letter by November informing us what changes are to occur to bring it into compliance. I think the days of 3 grand a month at age 51 are gone.
     
  2. soberups

    soberups Pees in the brown Koolaid

    I am grateful to be in the Western Conference. We were down to 84% last year when the market tanked (which is still considered healthy) but the fund has rebounded up to 89%. I'm in PEER 80 and I started at age 20.....so I will be able to get out at age 50 on around $4800 a month. :happy-very:
     
  3. Just Numbers

    Just Numbers Retired

    Reality check! You can't spend what you don't have. Wish our government could learn that.
     
  4. Just Numbers

    Just Numbers Retired

    How close are you to retirement?
     
  5. brownmonster

    brownmonster Man of Great Wisdom

    Sweet deal. I would like to punch you in the throat.:angry-very2:
     
  6. 705red

    705red Browncafe Steward

    Many pension funds have lost money recently. Some have lost considerably more than others. Like sober said the western whcih is the envy of every fund dropped to 84% and is now back to 89% funded. Some funds decided to ride out the storm, some moved money to safer bonds etc. I know my 401k took a serious hit and that is small change compared to the billions some of these funds have.

    I would like to say that the majority of funds will rebound and we will all be better off, but I cant. Playing the stock market and investing is nothing more than legalized gambling. IMO

    I to received a letter from local 705 as im sure every vested pensioner within UPS and the Teamsters have.
     
  7. 1989

    1989 Well-Known Member

    My question is, WHY? Are these pension managers amateurs? Are they not nimble enough to move money as breakdowns occur? Do they not valuate companies and initial assets in these funds to make decisions going forward? Western States is better than many, but still get no better than a D grade. Granted they are better than government, but arn't these people suppose to be professionals?
     
  8. soberups

    soberups Pees in the brown Koolaid

    6 years, 9 months, 10 days, 14 hours and 12 minutes....if I hold my vacations over from the previous year. Otherwise, 6 years 11 months and 19 days.

    If I choose to stay beyond that point....it will be on a day-by-day basis and I will have a completely different attitude about the job.
     
  9. Just Numbers

    Just Numbers Retired

    I was on countdown mode just like you, sometimes it flies by and other times it drags, anyway congrats on being closer then most. Hope your pension and benes are still intact down the road.
     
  10. Coldworld

    Coldworld Well-Known Member

    sober, were you part time at ups...if so how do those part time years play out in the western conference??? So I know that ups has MANY different areas with different pension plans. Will there ever be a day where ups could combine all of these and pull money from a healthy plan to balance out a weak one...or is this impossible since ups is only one company in the plan? Does the govt have any say in this???
     
  11. Coldworld

    Coldworld Well-Known Member

    Just curious how you got this number...is this the one that is on your yearly statement that is an average if all things go ok years down the road???
     
  12. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I am in the NYS Teamsters Plan, which is a multi-employer plan. I started a thread in another forum on this very topic as our fund is at critical status, which means it is less than 65% funded.

    I would think that UPS would love to gain control of all of the various pension plans but pulling money from a healthy plan to bail out a weaker one would be fine as long as it does not affect the pension payments of those in the healthier plan. Sorry, but we are "brothers" until it affects my wallet, then it is every man for himself.
     
  13. Coldworld

    Coldworld Well-Known Member

    Red, how is the pension in chicago, since your area seems to get a little more than other parts of the country during contracts. But the problem is that even if someone retired today from 705 with X amount, you receive higher contributions than someone 20 years ago so if everything balances out later you should receive considerably more than a new retiree..at least in theory.
     
  14. Coldworld

    Coldworld Well-Known Member

    But could they do this without a legal battle since there are other companies in the plan...Im not talking about buying it out...but since they are one of the largest employers in these plans they probably have clout. Does anyone know if these plans are Teamsters only plans or are there other unions involved somehow with them?
     
  15. Coldworld

    Coldworld Well-Known Member

    Would the healthy pension members be "grandfathered" in?
     
  16. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I honestly have no idea as we are dealing with hypotheticals here.

    Jon Frum is the pension expert here.
     
  17. brownrod

    brownrod Active Member

    I'm in the western states. However, I live my life as if there is no pension waiting for me when I retire. If the pension is there then I will be happy to accept it.
     
  18. brownmonster

    brownmonster Man of Great Wisdom

    I think the biggest problem with our pensions is not the way they are invested, but the ratio of retirees to workers supporting them. We had our 1st retiree in 1995 in our building with 60 drivers. Now we have 30 retirees and only 50 drivers. To much coming out and not enough going in. Couple this with the same problems in Social Security and it makes for a grim outlook. How much can a guy realistically salt away in a 401K while also supporting a family.
     
  19. JonFrum

    JonFrum Member

    The plans are mostly composed of Teamster bargaining unit employees, with a few select others included, like the employees and trustees of the pension funds themselves. The NY Local 804 plan also has some UPS' Machinists Union (IAM) employees in it, and one of it's trustees is a Machinists Union official.

    Trustees are legally bound to act in the best interest of plan participants and beneficiaries (no, really, I'm not kidding) so they would probably be in violation of their "fiduciary duty" if a better-funded fund agreed to merge with a poorly-funded fund. One way or another, if the funding levels are too different, the participants of the better-funded fund will loose out in the deal.

    UPS can't take over the funds. The most UPS can do is withdraw from the funds (with members' approval), as UPS did from Central States, and try to do things better from that point foreward in a new fund.
     
  20. JonFrum

    JonFrum Member

    Spend a while digesting the debt :sad-very:and unfunded liability :sick: figures on this page:
    http://www.usdebtclock.org/