Pensions...We all saw this coming.
- Thread starter reydluap
- Start date
UpstateNYUPSer(Ret)
Well-Known Member
Our problem is 5000 more retirees than actives and companies pulling out of our plan and offering a 401k rather than a DBPP.
We aren't having any problem growing.
brownmonster
Man of Great Wisdom
Only the blind and the kool aid drinkers believed it would be limited.
1989
Well-Known Member
I'm sure UPS would implement a 50 (years of service) and out policy. No pension, just SS.
Brownslave688
You want a toe? I can get you a toe.
That shouldn't be a problem at all. Current retirees should be pulling out from the money put in for them. Not money put in for current employees.
The problem was over promising to previous employees when enough money for those promises to be kept was not coming in.
ski or die
Ski or Die
UPS contributes pension for part time employees. It would be interesting to know how many of them actually work until they are able to retire and draw a pension. Quite a few use UPS as a stepping stone while they complete college. A good percentage of them after completing their degree have seen the challenges they would face at UPS if they made it a career and move on and use their degrees. Those employees of 2 to 4 years contribute pension which helps ours because they will not be receiving a pension.
Dutch Dawg
Well-Known Member
Then again if a Union plan is truly in distress and the Trustees determine it necessary to reduce plan benefits for any new retirees; why should someone that possibly retired just prior to the reduction, yet had no more monie$ contributed on their behalf, still be guaranteed significantly more?
Isn't the Union concept all about equality?
Isn't the Union concept all about equality?
rod
Retired 22 years
Why should you be guaranteed social security just because you've paid a little bit into it while we paid all our working careers?
Brownslave688
You want a toe? I can get you a toe.
brown metal coffin
Well-Known Member
The table is being set. Over the last year or so I have seen a few companies where the unions have voted to abolish their pension plans in favor of matching 401k. I could see this playing out over the long term as we are completely upside down with people pulling out of the pension as those that are putting into it right now. What I want to know is; if UPS doesn't contribute to the pension fund anymore where does that balance go and how is it dispersed.
UpstateNYUPSer(Ret)
Well-Known Member
When a company pulls out of a pension plan they have to pay a withdrawal liability. UPS paid $6.1B to pull out of Central States and just under $1B in New England.
ski or die
Ski or Die
Just read the House attached the amendment to the spending plan to attack our pension plan. Said it would affect 1.5 million workers, 400,000 of them in the Central State Plan. Nancy Pelosi said she hoped the rank and file would support this bill. Can't get a break from the Democrats who are supposed to support workers. If it gets through the House, Harry Reid seems to be supporting the bill to avoid a government shutdown. And most likely Obama will follow along. They don't seem to be able to understand how many of these retiree's rely on their pension and live check to check. Many will end up on numerous Govt programs and lose their homes. Not all of them will have enough savings to prevent this. Lets continue to send more money overseas to support other countries economies and let our own people slide into poverty.
http://www.latimes.com/business/hiltzik/la-fi-mh-congress-expected-20141210-column.html
I guess this is good for UPS employees and retirees in the Central States Plan?
I guess this is good for UPS employees and retirees in the Central States Plan?
The new provision effectively places UPS retirees last in line for benefit cuts among all "orphans" getting their benefits from Central States. Pension experts say that arrangement materially reduces the likelihood that the UPS retirees will suffer more than minimal cuts, if any cuts at all. In turn, that reduces the liability of UPS.
The Teamsters on Tuesday said this provision could save UPS $2 billion, calling it an "outrageous government bailout of one of the most profitable companies in America." The union noted, accurately, that it would likely result in deeper benefit cuts for non-UPS retirees--who would effectively be paying for UPS's break with their own retirement stipends.
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