IAM pension plan reduction

[astoneburner]

Just received my letter today. Looks like a 40 % reduction on future benefits to me.Our contract is up in 2014 so it looks to me like the reduction will begin with 2014 future benefits.
Some one please tell me I am wrong.
Alan

 

[brett636]

While I cannot confirm what you say, I would not be surprised if I were you. Very few union pension funds are fully funded, with many having to endure exactly what you are going through. Its the result of a combination of poor planning and bad decision making which caused this very scenario. More people retiring with fewer people paying in along with benefits increased without any plan for how to pay for them will cause many of us covered by such plans to experience this same problem. I would say that if your not within 5 years or so of retiring plan on working longer than you originally thought you would.

 

[Anonymous 10]

Just received my letter today. Looks like a 40 % reduction on future benefits to me.Our contract is up in 2014 so it looks to me like the reduction will begin with 2014 future benefits.
Some one please tell me I am wrong.
Alan

Are you in the central region? If you are you would be in the new teamsters ups pension fund. There is no reduction in this fund.

 

[brett636]

I believe IAM is the international association of machinists, but I could be wrong.

Sent from my HTC Evo 4g using Tapatalk

 

[astoneburner]

Are you in the central region? If you are you would be in the new teamsters ups pension fund. There is no reduction in this fund.

I am a mechanic and in the IAM pension fund.
thanks Alan

 

[Matthew Sweeney]

we are on a 5 year pay freeze cause are pension is a mess in Portland with the IAM all are raises go to the pension.

 

[Matthew Sweeney]

and i forgot one thing no more 85 and out you have to work till your 65 to retire

 

[dragracer66]

Yes...Its true I got my letter today. It won't hurt so much for those of us with 20 plus years but the new hires down to 03 its going to hurt. Its not just us its all of the companys in our union. They want to get the pension back to 115% funded. But anything we have earned up to 01/01/14 won't change. We just won't get as much in our contribution monthly as we do now. I quess with the economy and not enough retirees dropping dead its starting to drain the plan!

 

[JonFrum]

The 40% cuts in pension accrual rates begins in three years (1/1/2014) so past earned accruals, and the next three years of presumably increasing accruals, are not effected. See . . .

By comparison, the accural rates for the new UPS-IBT Plan are only . . .
January 1, 2008 . . . $132.00
January 1, 2009 . . . $132.00
January 1, 2010 . . . $135.50
January 1, 2011 . . . $147.00
January 1, 2012 . . . $158.50
January 1, 2013 . . . $170.00

As you can see these rates are considerably lower than the IAM rates even after the drastic 40% cut. Any UPSer relying on these accrual rates to generate his monthly pension amount is in for a rude awakening at retirement time.

Most UPS Machinists contribute about $7.15 or so per hour.

My New England Plan, which has been on life-support, has frozen our accrual rate at $248 since 2005. We contribute $7.21 per hour to earn that $248.

 

[TR0LL]

Pensions are like typewriters......a thing of the past.

 

[UPSGUY72]

Pensions are like typewriters......a thing of the past.

Hopefully you will follow with a attitude like that.

 

[Anonymous 10]

Hopefully you will follow with a attitude like that.

I think Trool is also Upssocks.

 

[TR0LL]

hey, in NO WAY am I against pensions, but, lets get real. They are a thing of the past..... I mean look at that Alabama town... They just QUIT sending out the retirement checks to all those city workers. Now they have nothing, and the pension they were promised.....well, no more. All these old people had to start getting jobs again cause that particular town quit sending them their checks.... This is the world we live in. Prepare, or banish......

 

[UpstateNYUPSer(Ret)]

Pensions are like typewriters......a thing of the past.

You do have a valid point. The workforce has changed from one in which there was a need for a "forced" retirement plan (pension) to one in which the worker has the ability to prepare for their own retirement with the contributions from the company going directly to the employee rather than to the union.

I would be lying if I were to say that I am not planning on my pension, which is projected to be $4K/month, to be the majority of my retirement income. Social Security will be spending money and my 401K will pay what is left of my mortgage. Debt reduction will be my primary goal in the 8 years that I have left.

I think you will see more and more companies doing away with defined benefit plans.

 

[TR0LL]

That's a bad predicament to be in. Walking that tight rope on the will there be, or will there not be? I think those that started UPS, say before 2000, should be guaranteed a pension, though different start years and retirement ages should vary. The rest of us, well, suck it up and max out our 401k.... we make enough money to do so. We are the last "automotive industry" here in the U.S. and I think it would be irresponsible thinking, on our part, for us younger employees to think we'll retire, at 38, with 20 years in, with a $2000 a month pension. Those days are over and will never return. Many people, who have Masters Degrees, can't find work anywhere, this is a sign of the times, and for us to think we are entitled to so many things are just living in the clouds. I know there will be no pension for me when I retire, so I'll just work til I'm 65- 67, save 3 or so million on my 401k, retire, and just live off the interest....be more than a pension anyways.

But in your case, I hope you have your pension when you retire. In fact, you should be guaranteed it. And not have to live day be day worrying if it will be there when you retire or not. Good luck.