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UPS Retirement Topics
local 804 pension problems
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<blockquote data-quote="Cezanne" data-source="post: 144580" data-attributes="member: 5104"><p>Here is how pension funding works: Monetary contributions are put into a investment porfolio according to the contract. The ultimate goal of any pension fund is to be 100 percent vested, which means basically that it can pay the benefits promised with just the interest off the investments. The additional monetary contributions of top of the investment interest would be put into increasing the benefit for the participants. </p><p> </p><p>Alot of blame with this pension crisis is being put on the teamster pensioners that were working for these bankrupt/defunct companies. Some people are trying to convince you that they are only free loading and draining your future retirement benefits. Truth is they are only collecting what they are eligible for with the contributions that they also have been paying into the plan. When these companies went belly up, those union employees if they were not eligible to collect retirement will not get any credit vested years and lost any chance for anymore monetary contributions. Their benefit, if vested is locked into a bare minimun till they reach age 65, the pension fund collects the interest off their contributions for the years prior to them collecting anything. If they were so lucky to get on with another teamster union shop they will continue to contribute and add vesting years and increase their pension benefits.</p><p> </p><p>Basically the monetary benefit of your retirement is determined by your contributions and the plan's investments when you leave the plan, whether terminated or collecting a full pension. When a plan gets into trouble it is generally due to lack of new participants, bad investments or promising a benefit that they cannot pay for. Would be save to say that the Central States fund would fall in those three catagories, so-called "Perfect Storm".</p></blockquote><p></p>
[QUOTE="Cezanne, post: 144580, member: 5104"] Here is how pension funding works: Monetary contributions are put into a investment porfolio according to the contract. The ultimate goal of any pension fund is to be 100 percent vested, which means basically that it can pay the benefits promised with just the interest off the investments. The additional monetary contributions of top of the investment interest would be put into increasing the benefit for the participants. Alot of blame with this pension crisis is being put on the teamster pensioners that were working for these bankrupt/defunct companies. Some people are trying to convince you that they are only free loading and draining your future retirement benefits. Truth is they are only collecting what they are eligible for with the contributions that they also have been paying into the plan. When these companies went belly up, those union employees if they were not eligible to collect retirement will not get any credit vested years and lost any chance for anymore monetary contributions. Their benefit, if vested is locked into a bare minimun till they reach age 65, the pension fund collects the interest off their contributions for the years prior to them collecting anything. If they were so lucky to get on with another teamster union shop they will continue to contribute and add vesting years and increase their pension benefits. Basically the monetary benefit of your retirement is determined by your contributions and the plan's investments when you leave the plan, whether terminated or collecting a full pension. When a plan gets into trouble it is generally due to lack of new participants, bad investments or promising a benefit that they cannot pay for. Would be save to say that the Central States fund would fall in those three catagories, so-called "Perfect Storm". [/QUOTE]
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