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UPS Retirement Topics
Has IBT/CS been a wise steward of our pension?
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<blockquote data-quote="ok2bclever" data-source="post: 52923"><p>No, that is not what I believe.</p><p></p><p>I think perhaps that should be closer to the reality, but that is not the situation.</p><p></p><p>Clearly, the amount contributed plus using a conservative compounded interest rate should be what the promised benefit level should be based on, but in truth the benefit level is based on more of a politician type promise.</p><p></p><p>Long ago it was basically based on the former and then it was doubled as the Teamsters saw this huge growth of young UPS employees (read increased and increasing contributions)who wouldn't be retiring for decades so they doubled the promised retirement benefit.</p><p></p><p>Then we had the huge pension tug-a-war where UPS upped the ante by fifty percent and the Teamsters had to match it or lose the tug-a-war.</p><p></p><p>So we ended up with a great promise that was not financially sustainable.</p><p></p><p>What we currently have is a defined benefit plan where you can plan your future knowing how much you are going to get a month. (this is moving from a reality to theory as the financial stability of the fund dwindles).</p><p></p><p>What you are describing is exactly what corporate American is pushing and moving to and UPS would love to switch to which is a defined contribution plan.</p><p></p><p>They contribute x amount and you live or die with it as you wish.</p><p></p><p>As an independent minded individual I know you favor that type, but in truth it won't and doesn't work well for the average Joe.</p><p></p><p>I don't support a "smorgasborg" that helps UPS dodge the promise I worked under for the last couple of decades.</p><p></p><p>Currently, UPS still has major obligations to try to keep our pension promises alive.</p><p></p><p>True they are trying to get out from under these obligations and they have a decent chance in the current company favorable environment of doing so, but I am not in favor of helping them do so.</p><p></p><p>Back to the lie or whatever:</p><p></p><p>Looking for facts that would substantiate the acuracy or inacuracy of McDevitt's claims I came across an issue by TDU regarding the statements.</p><p></p><p>I don't agree with TDU objectives much as they primarily seem to just be bringing Hoffa down and not actually helping or representing us workers, but the stats seem sound.</p><p></p><p>They pointed out that UPS based their claims on going back thirty years of contributions and using a "conservative" 7.5% interest rate, <strong>BUT</strong> they used todays current and highest contribution rate of $5/hour!</p><p></p><p>Thirty years ago it was only 48 cents, twenty years ago it was only $1.37 and ten years ago it was $2.50.</p><p></p><p>Obviously the math would end up very different than using the figures UPS erroneously used.</p><p></p><p>TDU states it would come out to $2,394 per month, considerably less than the 3,000 we were promised just a couple of years ago, let alone the $5,833 a month figure UPS used or the $7000 one we have heard thrown around here.</p><p></p><p>Sigh, I call that a lie.</p><p></p><p>Don't hold your breath about the US Government holding UPS in contempt or charging them with perjury anytime soon though.</p></blockquote><p></p>
[QUOTE="ok2bclever, post: 52923"] No, that is not what I believe. I think perhaps that should be closer to the reality, but that is not the situation. Clearly, the amount contributed plus using a conservative compounded interest rate should be what the promised benefit level should be based on, but in truth the benefit level is based on more of a politician type promise. Long ago it was basically based on the former and then it was doubled as the Teamsters saw this huge growth of young UPS employees (read increased and increasing contributions)who wouldn't be retiring for decades so they doubled the promised retirement benefit. Then we had the huge pension tug-a-war where UPS upped the ante by fifty percent and the Teamsters had to match it or lose the tug-a-war. So we ended up with a great promise that was not financially sustainable. What we currently have is a defined benefit plan where you can plan your future knowing how much you are going to get a month. (this is moving from a reality to theory as the financial stability of the fund dwindles). What you are describing is exactly what corporate American is pushing and moving to and UPS would love to switch to which is a defined contribution plan. They contribute x amount and you live or die with it as you wish. As an independent minded individual I know you favor that type, but in truth it won't and doesn't work well for the average Joe. I don't support a "smorgasborg" that helps UPS dodge the promise I worked under for the last couple of decades. Currently, UPS still has major obligations to try to keep our pension promises alive. True they are trying to get out from under these obligations and they have a decent chance in the current company favorable environment of doing so, but I am not in favor of helping them do so. Back to the lie or whatever: Looking for facts that would substantiate the acuracy or inacuracy of McDevitt's claims I came across an issue by TDU regarding the statements. I don't agree with TDU objectives much as they primarily seem to just be bringing Hoffa down and not actually helping or representing us workers, but the stats seem sound. They pointed out that UPS based their claims on going back thirty years of contributions and using a "conservative" 7.5% interest rate, [B]BUT[/B] they used todays current and highest contribution rate of $5/hour! Thirty years ago it was only 48 cents, twenty years ago it was only $1.37 and ten years ago it was $2.50. Obviously the math would end up very different than using the figures UPS erroneously used. TDU states it would come out to $2,394 per month, considerably less than the 3,000 we were promised just a couple of years ago, let alone the $5,833 a month figure UPS used or the $7000 one we have heard thrown around here. Sigh, I call that a lie. Don't hold your breath about the US Government holding UPS in contempt or charging them with perjury anytime soon though. [/QUOTE]
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