So whats next? Is this the exact same thing that was done in the Central States?

Discussion in 'UPS Union Issues' started by Benben, Sep 3, 2012.

  1. Benben

    Benben Active Member

    http://www.pionline.com/article/20120903/PRINTSUB/309039997/a-new-pension-model


    "the company and fund agreed to create a new structure for future benefit accruals in which all employers that join the new fund will be liable for only their own employee pension benefits." What exactly does this mean for The New England UPSers, those retired, those currently working and the new hires?

    The Central States fund is said to be, "in critical status." Yet the letter I received a last month listed it as 80% funded thus not "critical." My interpretation is the company is moving to protect us but I have a nasty habit of looking at things through rose colored glasses.
     
  2. Sammy

    Sammy New Member

    Once UPS enters the new pool they will no longer legally liable to fund the old pool. UPS is taking a 896 million dollar charge in the third quarter to pay off the liability of the old pool. If you are retired you stay in the old pool. Current employees will be in the old pool and new pool. September 16,2012 looks like the change date.
    I think Part 2 of this link is what opened the door for UPS to enter a new pension structure:http://www.nettipf.com/pdf_files/newplanspd.pdf
    Page 15 of the pdf file:
    PART II – Current Employers Transition Into Second
    Withdrawal Liability Pool
    Current Contributing Employers already contributing to the
    Pension Fund as of October 1, 2010 may negotiate to transition
    into the Pension Fund’s second withdrawal liability pool.
    I may be wrong but the language in this document looks like why this is taking place.