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UPS Union Issues
Fred Zs * visit, his amicable meeting with PK & JC 42s fury!
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<blockquote data-quote="Inthegame" data-source="post: 2049476" data-attributes="member: 37112"><p>Because plans improve monthly benefits along the way, often because of political pressure and advantage and not fiscal prudence.</p><p>If in your scenario that benefit hadn't changed for 50 years, your premise would be accurate. But even responsible Trustees must not only rely on future acturarial projections (as the law mandates) but can be legally forced to improve benefits when possible. Unfortunately those same trustees don't have crystal balls to predict employers going belly up. So in that aspect it is a crap shoot.</p><p>So as a plan increases benefit payments, the contributing employers unfunded (withdrawal) liability increases, then if that employer goes out of business, that plan is left holding the bag and never receives those obligations. Most plans can withstand some failures, but not on the level CS suffered.</p></blockquote><p></p>
[QUOTE="Inthegame, post: 2049476, member: 37112"] Because plans improve monthly benefits along the way, often because of political pressure and advantage and not fiscal prudence. If in your scenario that benefit hadn't changed for 50 years, your premise would be accurate. But even responsible Trustees must not only rely on future acturarial projections (as the law mandates) but can be legally forced to improve benefits when possible. Unfortunately those same trustees don't have crystal balls to predict employers going belly up. So in that aspect it is a crap shoot. So as a plan increases benefit payments, the contributing employers unfunded (withdrawal) liability increases, then if that employer goes out of business, that plan is left holding the bag and never receives those obligations. Most plans can withstand some failures, but not on the level CS suffered. [/QUOTE]
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