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UPS Union Issues
Not one valid reason to stay with the Teamsters
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<blockquote data-quote="JonFrum" data-source="post: 155361"><p>False. UPS offered a hypothetical (non-existant) plan that would be jointly trusteed by equal numbers of UPS executives and Teamsters officers, (which may be what you meant to say,) but the Plan Administrator would be a UPS appointee. Normally, trustees delegate the day-to-day administration of a plan to the Plan Administrator, so he has a lot of power, especially in a situation where the board of trustees can be expected to be deadlocked three-to-three on nearly every issue. The insistance of UPS to be in complete control of of day-to-day plan administration guaranteed the proposal would go nowhere.</p><p></p><p></p><p>False. As bad as Central States (and a few other funds') financial condition is, there is virtually no chance of it folding and pulling us all down, with UPS being stuck paying off its liabilities. That's just not how multi-employer pension plans work, or how the Pension Benefit Guarantee Corporation works. First, UPS is only responsible for its share of any unfunded liabilities, not the whole plan's liabilities. Second, unlike a single-employer plan, which goes under when its one-and-only contributing employer goes under, multi-employer plans, (the big ones anyway) are diversified and self-insured by having thousands of employers. The track record of single-employer funds failing is litterally 100 times worse than multi-employer plan failures. But some multi-employer plans are even safer than others because they are not just diversified by having many contributing employers throught an industry, but by further having employers diversified throught the entire economy. For Central states to go belly-up would almost require the entire economy to go belly-up. If that happened, say, as a result of multiple nuclear detonations by terrorists, your pension woes would be the least of you worries. </p><p></p><p>Visit the PBGC's very informative website and see in their own words how large multi-employer plans in trouble are handled. Typically they are not in danger of bankruptcy, (that's almost an imposibility), but rather have a temporary funding crisis that is cured by benefit cuts. In more extreem cases where a fund is actually unable to make a payment due, the PBGC LENDS the fund the money to make the payment. Over time, the problem is cured and the money paid back. The idea that either UPS (or the PBGC) will be dragged under by Central States is unfounded. Incidently, the Western Conference fund is the only other "huge monster plan" and it is now said to be 100% funded, so relax, loosen your tie, and visit the multi-employer pages of <a href="http://www.pbgc.gov/" target="_blank">Pension Benefit Guaranty Corporation (PBGC)</a></p></blockquote><p></p>
[QUOTE="JonFrum, post: 155361"] False. UPS offered a hypothetical (non-existant) plan that would be jointly trusteed by equal numbers of UPS executives and Teamsters officers, (which may be what you meant to say,) but the Plan Administrator would be a UPS appointee. Normally, trustees delegate the day-to-day administration of a plan to the Plan Administrator, so he has a lot of power, especially in a situation where the board of trustees can be expected to be deadlocked three-to-three on nearly every issue. The insistance of UPS to be in complete control of of day-to-day plan administration guaranteed the proposal would go nowhere. False. As bad as Central States (and a few other funds') financial condition is, there is virtually no chance of it folding and pulling us all down, with UPS being stuck paying off its liabilities. That's just not how multi-employer pension plans work, or how the Pension Benefit Guarantee Corporation works. First, UPS is only responsible for its share of any unfunded liabilities, not the whole plan's liabilities. Second, unlike a single-employer plan, which goes under when its one-and-only contributing employer goes under, multi-employer plans, (the big ones anyway) are diversified and self-insured by having thousands of employers. The track record of single-employer funds failing is litterally 100 times worse than multi-employer plan failures. But some multi-employer plans are even safer than others because they are not just diversified by having many contributing employers throught an industry, but by further having employers diversified throught the entire economy. For Central states to go belly-up would almost require the entire economy to go belly-up. If that happened, say, as a result of multiple nuclear detonations by terrorists, your pension woes would be the least of you worries. Visit the PBGC's very informative website and see in their own words how large multi-employer plans in trouble are handled. Typically they are not in danger of bankruptcy, (that's almost an imposibility), but rather have a temporary funding crisis that is cured by benefit cuts. In more extreem cases where a fund is actually unable to make a payment due, the PBGC LENDS the fund the money to make the payment. Over time, the problem is cured and the money paid back. The idea that either UPS (or the PBGC) will be dragged under by Central States is unfounded. Incidently, the Western Conference fund is the only other "huge monster plan" and it is now said to be 100% funded, so relax, loosen your tie, and visit the multi-employer pages of [url=http://www.pbgc.gov/]Pension Benefit Guaranty Corporation (PBGC)[/url] [/QUOTE]
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