UPS spared pension cuts unless...

Discussion in 'UPS Discussions' started by browned out, Oct 2, 2015.

  1. browned out

    browned out Active Member

    The Cuts

    It will take more time to sort out the details of the Proposed “Rescue Plan” which was submitted on September 25 to the Treasury Department, but not yet released for Teamsters to see.

    According to a press release from Central States:

    • So-called “orphans” who worked for companies such as CF, Preston, etc will have their pensions slashed to 110% of the PBGC maximum. For a Teamster collecting $3000 presently, this could mean a cut down to about $1200. This is unconscionable.
    • If you have pension credits from an “orphan” company and also credits from a surviving company, the cut will be proportionally between the two levels.
    • UPS transfer group: UPS Teamsters who retired in 2008 or later will be protected by the “make whole” clause in the UPS contract (UPS will have to make up for pension cuts as long as that clause stays in the contract). But those who retired before 2008 will suffer cuts.
    • Reemployment Rule. No restrictions for those already retired. For those who retire after October 1, 2015, there will be relaxed restrictions.
    • Accrual rate for active Teamsters will be reduced for 1% of annual employer contribution to .75%.
    • Phase-out early retirement. Between 2021 and 2025 the age for retirement without reduction of benefits will rise from 62 to 65.
    See also the Fund’s Summary Guide to the pension cuts.
  2. Ms.PacMan

    Ms.PacMan Well-Known Member

    Thanks for posting an update.