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UPS subsidizing non ups pensions
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<blockquote data-quote="JonFrum" data-source="post: 150861"><p>It might surprise some to know that pension funds are insured by Fidelity Bonds, usually for $500,000, sometimes more. A surety company insures the fund against losses from fraud or dishonesty on the part of those handling the fund's money. However, if a fund has certain non-standard investments, they may have to buy higher coverage from a surety bonding company. Like all insurance, these bonds cost money, so even if you never suffer a loss, you are still "out" the cost of the premiums. A high level of coverage may give you greater peace of mind, or cause you to worry why the higher level may have been necessary.</p><p></p><p>The two funds run by UPS, for example, (the UPS Pension Plan and the UPS Retirement Plan), the 401(k) plan, as well as some Teamsters sponsored plans have the standard coverage of half a million dollars. The International Association of Machinists (IAM) National Pension Plan is covered by a bond of $1 million; the Local 710 fund, by $2 million; Central States by $3 million; Local 705, by $5 million; the New England fund, by $10 million; and (drum roll please) the Western Conference fund by $20 million!!! </p><p>- - - -</p><p>Selected information from Form 5500 Western Conference fund 2004: </p><p>Schedule H Part IV: Transactions During Plan Year </p><p></p><p> b. Were any loans by the plan or fixed income obligations due the plan in default as of the close of plan year or classified during the year as uncollectible? Yes. $55,324,935. </p><p> </p><p> c. Were any leases to which the plan was a party in default or classified during the year as uncollectible? Yes. $177,660. </p><p> </p><p> e. Was this plan covered by a fidelity bond? Yes. $20,000,000. </p><p> </p><p> friend. Did the plan have a loss, whether or not reimbursed by the plan's fidelity bond, that was caused by fraud or dishonesty? No.</p><p> </p><p>g. Did the plan hold any assets whose current value was neither readily determinable on an established market nor set by an independent third party appraiser? Yes. $109,236,975. </p><p></p><p> j. Were any plan transactions or series of transactions in excess of 5% of the current value of plan assets? Yes. </p><p> </p><p>Schedule H, Part II Income and Expense Statement </p><p> Administrative expenses:</p><p> (1) Professional fees: $3,853,769 </p><p> (2) Contract administrator fees: $49,639,473 </p><p> (3) Investment advisory and management fees: $42,824,370 </p><p> (4) Other: $5,097,913 </p><p> (5) Total administrative expenses: $101,415,525 </p><p></p><p>Schedule C, Service Providers [only the top 40 Service Providers are required to be listed individually.]</p><p>ANTHONY C. LOCK, CHAIRMAN OF THE BOARD, TRUSTEE Gross salary or allowances paid by plan $255,557. </p><p>BERNARD T. EILERTS, CO-CHAIRMAN/SECRETARY, TRUSTEE Fees and commissions paid by plan $220,235.</p><p> </p><p>Schedule B, Actuarial Information Part I</p><p>11. Has a change been made in the actuarial assumptions for the current plan year? Yes. </p><p>- - - -</p><p></p><p>Selected information from Form 5500 Central States fund 2004 </p><p>Schedule H, Part IV Transactions During Plan Year </p><p> </p><p> b. Were any loans by the plan or fixed income obligations due the plan in default as of the close of plan year or classified during the year as uncollectible? Yes. $57,598,491. </p><p> </p><p> e. Was this plan covered by a fidelity bond? Yes. $3,000,000. </p><p> </p><p> friend Did the plan have a loss, whether or not reimbursed by the plan's fidelity bond, that was caused by fraud or dishonesty? No. </p><p> </p><p>g. Did the plan hold any assets whose current value was neither readily determinable on an established market nor set by an independent third party appraiser? Yes. $11,965,954. </p><p> </p><p> j. Were any plan transactions or series of transactions in excess of 5% of the current value of plan assets? Yes. </p><p> </p><p>Schedule H, Part II Income and Expense Statement</p><p> Administrative expenses: </p><p> (1) Professional fees: $1,393,809. </p><p> (2) Contract administrator fees: - - </p><p> (3) Investment advisory and management fees: $68,626,086. </p><p> (4) Other: $57,584,226. </p><p> (5) Total administrative expenses: $127,604,121. </p><p></p><p>Schedule B, Actuarial Information Part I</p><p> 11 Has a change been made in the actuarial assumptions for the current plan year? Yes.</p><p> </p><p>For further details on all of this, see the Form 5500s themselves. And have a Happy New Year!</p></blockquote><p></p>
[QUOTE="JonFrum, post: 150861"] It might surprise some to know that pension funds are insured by Fidelity Bonds, usually for $500,000, sometimes more. A surety company insures the fund against losses from fraud or dishonesty on the part of those handling the fund's money. However, if a fund has certain non-standard investments, they may have to buy higher coverage from a surety bonding company. Like all insurance, these bonds cost money, so even if you never suffer a loss, you are still "out" the cost of the premiums. A high level of coverage may give you greater peace of mind, or cause you to worry why the higher level may have been necessary. The two funds run by UPS, for example, (the UPS Pension Plan and the UPS Retirement Plan), the 401(k) plan, as well as some Teamsters sponsored plans have the standard coverage of half a million dollars. The International Association of Machinists (IAM) National Pension Plan is covered by a bond of $1 million; the Local 710 fund, by $2 million; Central States by $3 million; Local 705, by $5 million; the New England fund, by $10 million; and (drum roll please) the Western Conference fund by $20 million!!! - - - - Selected information from Form 5500 Western Conference fund 2004: Schedule H Part IV: Transactions During Plan Year b. Were any loans by the plan or fixed income obligations due the plan in default as of the close of plan year or classified during the year as uncollectible? Yes. $55,324,935. c. Were any leases to which the plan was a party in default or classified during the year as uncollectible? Yes. $177,660. e. Was this plan covered by a fidelity bond? Yes. $20,000,000. friend. Did the plan have a loss, whether or not reimbursed by the plan's fidelity bond, that was caused by fraud or dishonesty? No. g. Did the plan hold any assets whose current value was neither readily determinable on an established market nor set by an independent third party appraiser? Yes. $109,236,975. j. Were any plan transactions or series of transactions in excess of 5% of the current value of plan assets? Yes. Schedule H, Part II Income and Expense Statement Administrative expenses: (1) Professional fees: $3,853,769 (2) Contract administrator fees: $49,639,473 (3) Investment advisory and management fees: $42,824,370 (4) Other: $5,097,913 (5) Total administrative expenses: $101,415,525 Schedule C, Service Providers [only the top 40 Service Providers are required to be listed individually.] ANTHONY C. LOCK, CHAIRMAN OF THE BOARD, TRUSTEE Gross salary or allowances paid by plan $255,557. BERNARD T. EILERTS, CO-CHAIRMAN/SECRETARY, TRUSTEE Fees and commissions paid by plan $220,235. Schedule B, Actuarial Information Part I 11. Has a change been made in the actuarial assumptions for the current plan year? Yes. - - - - Selected information from Form 5500 Central States fund 2004 Schedule H, Part IV Transactions During Plan Year b. Were any loans by the plan or fixed income obligations due the plan in default as of the close of plan year or classified during the year as uncollectible? Yes. $57,598,491. e. Was this plan covered by a fidelity bond? Yes. $3,000,000. friend Did the plan have a loss, whether or not reimbursed by the plan's fidelity bond, that was caused by fraud or dishonesty? No. g. Did the plan hold any assets whose current value was neither readily determinable on an established market nor set by an independent third party appraiser? Yes. $11,965,954. j. Were any plan transactions or series of transactions in excess of 5% of the current value of plan assets? Yes. Schedule H, Part II Income and Expense Statement Administrative expenses: (1) Professional fees: $1,393,809. (2) Contract administrator fees: - - (3) Investment advisory and management fees: $68,626,086. (4) Other: $57,584,226. (5) Total administrative expenses: $127,604,121. Schedule B, Actuarial Information Part I 11 Has a change been made in the actuarial assumptions for the current plan year? Yes. For further details on all of this, see the Form 5500s themselves. And have a Happy New Year! [/QUOTE]
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