Do you even know anything about it? What was bailed out? The fact the UPS had to pay their owed unfounded liability which was a check for 90 million? The fact that they slid into their own pool which won't force them to owe anymore unfounded amount but owe 43 million dollars for 50 years? The fact we had a return of 14% on investments? If it makes you feel better to call it a bailout, go ahead.
I love this... the union pisses away the money in the pension fund, and due to laws about multi employer funds, the last company standing gets stuck with the bill. So UPS is paying for piss poor mgmt of the teamster pension fund to the tuen of 43 million per year for 50 years. You don't call that a bailout? That's laugable.
As I've said many times before, show a financial advisor what UPS contributes on your behalf for pension (esp in New England). Then show them what you get at retirement. They will tell you that you are getting screwed. Up in New England, add in the fact that UPS contributes to the pension fund for PT'ers many of which won't make it til 5 year vesting. You should have huge pensions..
My apologies, I misposted, it was 900 million in a lump sum. The other 43 mil for 50 years is to cover a total of 2 billion. Do you even know how unfunded liability works? Do you even know how many mom and pop trucking companies went out of business due to the piss poor economy? EN pension is not perfect, but it runs circles around other teamsters locals all that had a bad hit. Make sure your investor consults actuaries so he knows people are living longer. I love how people can post on BC without fact. I'm going to go into work every Friday and ask for my bailout check instead of my paycheck. I'm just gonna call it a bailout.
This is from a public website.
Right from UPS's backyard:
ATLANTA--(BUSINESS WIRE)--UPS (NYSE:UPS) today announced an agreement with the New England Teamsters and Trucking Industry Pension Fund (NETTI) to restructure pension liabilities for approximately 10,200 UPS employees.
“This transfer will remove uncertainty associated with this plan for our people while being fair to the company and our investors.”
The agreement reflects a decision by NETTI’s trustees to establish a second pension plan “pool” to make it more attractive for new employers to join the Fund. Such a structure is designed to allow employers to assume responsibility only for their own employees without regard to any previous Fund liabilities. For UPS, this structure allows the company to freeze its liability in the original pool, establish its payment obligations and move UPS employees into the new pool.
UPS will record a one-time charge of $896 million in the third quarter. This charge represents the present value of the company’s $2.1 billion withdrawal liability from the original pool, which it will pay over the next 50 years. Subject to approval by local unions, the withdrawal will be effective Sept. 16, 2012.
In addition, UPS and NETTI have agreed to a contribution rate for future accruals designed to ensure UPS employees do not see a reduction in their pension benefits and the company will not be required to increase cash contributions for 10 years.
“UPS’s goal when considering any change to participation in a multi-employer pension plan is to safeguard the pensions earned by our employees in a cost-effective manner,” said John McDevitt, UPS’s senior vice president of human resources and labor relations. “This transfer will remove uncertainty associated with this plan for our people while being fair to the company and our investors.”
So your so called bailout, is actually money that is owed.
