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UPS Union Issues
Think it thru....Pension Takeover
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<blockquote data-quote="JonFrum" data-source="post: 254030"><p>Engineer79,</p><p>I don't follow what you're trying to say, but if you're talking about the new single employer plan for full time Central Staters, let me say this: The Teamsters didn't negotiate a higher pension contribution rate, or any specific contribution rate for that matter. "The Employer will be responsible for funding the UPS/IBT Plan as required by applicable law." Meaning, UPS only has to fund the vested benefits of participants as they accumulate. All those revolving door UPSers that never get vested cost UPS zero in pension contributions. Those that do get vested will often have to wait years to collect, or will have to accept a reduced pension amount if they insist on collecting it early. This delays and reduces costs for UPS. It works like the UPS Pension Plan for part-time Central Staters, which is a very inexpensive plan to fund. Admitedly, a full-timer plan will be more expensive, but still a lot cheaper that having to make contributions on behalf of everyone for each hour worked up to 2080 hours per year. The savings go to UPS, not the fund participants. If you want higher benefits, you will have to re-negotiate them this time, and at every contract negotiation in the future.</p></blockquote><p></p>
[QUOTE="JonFrum, post: 254030"] Engineer79, I don't follow what you're trying to say, but if you're talking about the new single employer plan for full time Central Staters, let me say this: The Teamsters didn't negotiate a higher pension contribution rate, or any specific contribution rate for that matter. "The Employer will be responsible for funding the UPS/IBT Plan as required by applicable law." Meaning, UPS only has to fund the vested benefits of participants as they accumulate. All those revolving door UPSers that never get vested cost UPS zero in pension contributions. Those that do get vested will often have to wait years to collect, or will have to accept a reduced pension amount if they insist on collecting it early. This delays and reduces costs for UPS. It works like the UPS Pension Plan for part-time Central Staters, which is a very inexpensive plan to fund. Admitedly, a full-timer plan will be more expensive, but still a lot cheaper that having to make contributions on behalf of everyone for each hour worked up to 2080 hours per year. The savings go to UPS, not the fund participants. If you want higher benefits, you will have to re-negotiate them this time, and at every contract negotiation in the future. [/QUOTE]
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Think it thru....Pension Takeover
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