reduced pension benefit

Discussion in 'UPS Retirement Topics' started by hseofpayne, Apr 16, 2008.

  1. hseofpayne

    hseofpayne Guest

    I wanted to know if everyone else got the love letter from Central States regarding "possible" or as I read it to mean, probable reduction in what they deemed optional benefits. Some of those included 30 and out and the ridiculous option of retiring before age 65! Will we be covered by there shortfall by UPS run pension plan as I understood new contract to suggest, or should I go ahead and request my UPS car be equipped with a wheelchair lift for the later years?!
     
  2. broncobros1

    broncobros1 New Member

    Heh heh heh...your joking, right!? If someone was going to skim off the top of your retirement would it be UPS or the Mob? Thanks for the chuckle...!!!!
     
  3. HazMatMan

    HazMatMan New Member

    Probably the mob because no way would a UPS honcho embezzle, absolutely not, not on this green earth of God.:laughing:
     
  4. hseofpayne

    hseofpayne Guest

    Nope, I am jokingly serious! The letter sez within a year or so the CS Plan will no longer be able pensions at the current level because of lack of incoming cash from those still working. It said the letter was required by law since the Fund was in the red.
     
  5. Hangingon

    Hangingon New Member

    We got one for 639 in January. Lowering future pension benefits by 30%, and increasing the monthly insurance for early retirees to almost 500 a person, so 1K if you're married. We're not even in the red, so we figure it's the start of the plan to grab half our raises that the contract allows.
     
  6. hseofpayne

    hseofpayne Guest

    Sorry to hear that. I guess the saying about something being to good to be true , well it's true. The pessimist in me has always doubted our pensions were to good to be true, wanted to see one of those checks before I would believe it. I,as many others probably did, was very skeptical when reading the proposal for a combined UPS/CS pension. The proposal said UPS would to make up any difference if CS couldn't pay, but I am sure there was some fine print in there. I think about the Delta pilots who lost their pensions when Delta went bankrupt and now Delta is buying Northwest!! I don't think they should be able to spend a dime until they reinstated the pensions. I just pray this doesn't happen to us.
     
  7. scratch

    scratch Least Best Moderator Staff Member

    Yes, I did get the letter from Central States that it is critical status, the so-called "red zone". It said that this might result in the elimination of "adjustable benefits". These include the "And-Out" benefits,disability benefits, and the ability to receive pension before the age of 65. It also stated that all your pre-age 65 benefits will be transferred to the new UPS-IBT Pension Plan.
     
  8. Overpaid Union Thug

    Overpaid Union Thug Well-Known Member

    So, does this mean that the service pensions in the the new contract that everyone was so quick to vote "yes" on are probably going to be null and void? I figured it was too good to be true but damn I didn't think it would happen anytime soon.
     
  9. scratch

    scratch Least Best Moderator Staff Member

    No, it means the new UPS-IBT Plan will take up Central States slack. Not sure about after age 65 though.
     
  10. hseofpayne

    hseofpayne Guest

    So what is your theory on post 65. Social security 23 years from now isn't a safe bet!
     
  11. wkmac

    wkmac Well-Known Member

    Also in the same letter, the remaining employers still in CS will have to pay a immediate 5% additional payout to the fund and annually over the coming years until the shortfall is covered, an additional 10% to be paid in. Federal law gives CS 7 years to obtain fully funded status.

    Big,

    The way I read the letter we have nothing to worry about "BUT" I think in the long run you have the right idea in keeping a watchful eye on this situation.

    Big raises a good point folks in that we shouldn't bank on any pension and treat it in the same respect as many suggest with social security. Save! Save! Save! 401k, IRA, etc. and let the pension just be extra gravy and social security purely beer money!

    :wink2:

    One thing these plans also have to worry about is if they kill service pensions that allow early outs and force people to full retirement, then we qualify for accured pensions meaning you take the number of years service and multiplied by a specified dollar amount and in the case of CS, last time I looked it was $100 per month per year of service. In my case if I go to 65, it's 40 (years of service) times $100 and this is my monthly pension amount or $4k per month.

    In the new UPS contract, by the end of this latest contract, that number will have risen to $172 so I would guess for me if all things remain, 26 years times $100 equals $2600 from CS and then 14 years times $172 equals $2408 for a total of $5008 per month pension. I've also been told that the new contract and UPS pension has a retirement age of 62 not 65 "BUT" Big's good advice comes into play again. Also 14 years gives CS 7 years by law to be fully funded before I retire so things should/could get better "BUT" as Big said!

    :censored2: YOU BIG AND I WAS HAVING A GOOD DAY TOO!
    :happy-very: