Question about Central States Funding.

Discussion in 'UPS Union Issues' started by RealPerson, Jul 16, 2013.

  1. RealPerson

    RealPerson Active Member

    A Driver who is on TAW, and is a strong yes Voter, said that the Central States Health fund is the most funded one.
    I should clarify, I don't mean the most money sent to it, but the most cash on hand? That is is in no trouble, very strong...

    Also, he did say he would rather trust the union than UPS with his health care, and that the Union Retirement fund of Central States was just a accident, ha.

    One last question, Can the Pension fund, take from the Health Fund?

    Thus leading to most of our Raise being taken if needed....
     
  2. cynic

    cynic New Member

    As a PT hourly inside the hub I currently fall under the UPS administrated health plan. My understanding, and resistance, to being migrated to the Central States Plan is the funding from UPS to IBT for the CSP is not guaranteed to only be used by IBT on UPS members.

    I was speechless to see IBT want to take the financial burden on of health care costs. What do you read in the business papers weekly? About the rising cost of corporate health care - so why would IBT not want to have UPS maintain that financial risk and liability????

    To your point, I don't know how well funded CSP is but I am concerned with the fact that funds from UPS health care will not be guaranteed to be used for only UPS IBT members.

    Not to mention, in right-to-work states, guess what? Uh-huh....
     
  3. RealPerson

    RealPerson Active Member

    Just a FYI, fight to work states OK my HUB, and I am in a RTW state. We only have a few hundred employees, but 90% are in the Union, it use to be about 98%, but the current BA sucks...

    Also, so you know that the biggest % in several locals of the Health and Pension comes from UPS.

    Since my local is so small, our members dues cover the BA and prez income and spending accounts, with a small % left over.

    UPS pays $17 per Hour Per Employee to the union for Health and Pension, and with this TA, is will be $22 by the end of it....

    Bigger locals I can understand that more of the workers money from dues goes into the plans....
     
  4. derf3733

    derf3733 Member


    Pension and Health are separate funds, but any good accounting team could easily intertwine the two.

    However Hoffa just wrote the President Obama that the Health Fund was unsustainable.

    http://www.browncafe.com/forum/f39/teamcare-unsustainable-hoffa-words-not-mine-351379/
     
  5. Inthegame

    Inthegame Well-Known Member

    An accounting "team" that attempted to intertwine H&W and Pension contributions would not qualify as a good firm. They would however find plenty of clients in prison.

    No dues dollars go into H&W or Pension plans in any size local.
     
  6. RealPerson

    RealPerson Active Member

    Que "Stink"

    But, very good info to know.
     
  7. PiedmontSteward

    PiedmontSteward RTW-4-Less

    Last time I checked, CS Health & Welfare (TeamCare) had 18+ months of reserves -- meaning if all employer contributions stopped tomorrow, they could continue to pay out claims and benefits for the next year and a half.

    Using CS H&W to "prop up" the CS pension fund would be incredibly illegal, at worst, and unethical, at best. From what I was told, none of the proposed GWI diversions that have caused so much controversy could be put toward a pension fund in critical (>70%) status.

    Dues money does not go directly towards pension funds or H&W funds, but locals do contribute to pensions and healthcare plans using dues dollars on behalf of their officers and staff.
     
  8. Inthegame

    Inthegame Well-Known Member

    Good catch! Another reason why you should be the next GP.
     
  9. RealPerson

    RealPerson Active Member

    Nice, so like extra money from bigger locals would go.

    So, then it is fair to say that a Huge percent of money for the H&W and Pension is directly funded from UPS, I head $17 an hour and will be $22 an hour at the end of this contract?
     
  10. Inthegame

    Inthegame Well-Known Member

    No "extra money from big locals" goes anywhere. Any local of any size that has participants in Trust Funds pays the costs of benefits for their covered agents. Not another cent can be allocated to Trust Funds. PERIOD.
    Of course UPS contributes more into funds than other companies. UPS is the largest employer of Teamsters so naturally they contribute a larger percent. H&W benefits are based on contribution levels so coverage is increased proportionate to level of contribution. Pension contributions also determine accural rates that then determine benefit payments.
     
  11. Bubblehead

    Bubblehead My Senior Picture

    I have repeatedly read about the CS H&W fund being fully funded, with a substantial reserve.
    What I haven't seen is the actuarial forecast for the fund for the upcoming years.
    It is no secret that most every other sector of our union is in decline.
    It seems reasonable to me to think that a trend is occurring, whereas the number of retirees in the fund is increasing while the number of active participants is decreasing, creating an inevitable backwards slide in the CS H&W fund.
    It is for this reason that I believe we have been sold a bill of goods in an attempt to bolster the number of active participants in the fund on the backs of the IBT's only remaining cash cow, UPS.
    While I still would have voted NO on the National Master, I would have had more respect for those on the negotiating team if they would have told us the truth rather than pissing down our backs while telling us it is only raining.
     
  12. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Yes it's very well funded. Probably because it has the lowest level of benefits.
     
  13. RealPerson

    RealPerson Active Member

    Also,
    With 150K people now being put in it, with all those claims...

    I am still not sure I believe that UPS will pick up the difference between the C6 plan and the enhanced plan for the PT people being placed in CS now.

    Heck they don't even buy a cheap Turkey anymore...
     
  14. RealPerson

    RealPerson Active Member

    So the Term "Scab" is kinda irrelevant then?
    If my Dues are going to My Local ONLY, and most of that is for the Take home pay of the President and BA, and the workers, and travel expenses, and food everyday, and all the other expenses, ha see my point.................
    So If my President and my BA are not doing their Job, even coming out to UPS like once a year, don't even know the contract, will give different answers to different people, prob shouldn't pay them...
     
  15. PiedmontSteward

    PiedmontSteward RTW-4-Less

    Every local has to pay a "per capita tax" to the IBT in exchange for affiliating with the International.

    Dues also cover administrative expenses, meeting expenses, arbitration, the cost of taking cases to regional/national panels, etc. There are probably other employers within your local that aren't UPS.

    Every local has to provide a financial report to the members at every monthly meeting -- which I'm going to go ahead and assume that you don't attend. Additionally, the yearly expenses are provided in the publicly available LM-2 forms.

    The LM-2 Database is available here: http://kcerds.dol-esa.gov/query/getOrgQry.do

    If you post or inbox me your local number, I can tell you exactly what percentage of your dues money is going to salaries and compensation.
     
  16. PiedmontSteward

    PiedmontSteward RTW-4-Less

    RealPerson sent me his local number, which I won't post here, but I'll follow up:

    41% of his local's total dues income goes towards salaries for the executive officers and office staff.

    14% of his local's total dues goes to the CS Pension Plan and CS H&W fund on behalf of the executive officers and office staff.
     
  17. grgrcr88

    grgrcr88 No It's not green grocer!


    Gotta love the know it all that knows nothing!!
     
  18. Inthegame

    Inthegame Well-Known Member

    If half of what you say is actually happening, a frog could win election in your local against these guys. So why aren't you running?
     
  19. Bubblehead

    Bubblehead My Senior Picture

    Have any of you big numbers guys seen any actuarial forecasts for the Central States Health and Welfare Fund if they were not to acquire 160,000 new participants?
     
  20. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    He's not a Real Person.