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Brown Cafe UPS Forum
UPS Union Issues
UPS Teamsters keeping their next two Wage increases
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<blockquote data-quote="Inthegame" data-source="post: 2366133" data-attributes="member: 37112"><p>It's more of a hook that deters companies from opting out at contract renewal time. Remember these employers signed the participation agreement willingly.</p><p></p><p>Show me a company that starts business expecting to go out of business. The bankruptcy immunity protection companies <strong>are</strong> allowed is one of the prime causes of pension collapse. Once again Hostess is a perfect example.</p><p>Because their contribution rates are predetermined by the CBA. The market has a large impact. If their plan has a poor investment year, the participating employers don't kick in more annually to make up the underperformance, instead the unfunded liability increases. If the plan trustees vote a pension increase, the unfunded liability increases. If new mortality tables are used and we all live longer...you guessed it, unfunded liability increases.</p><p>In an ideal world the funded % stays at 100% and unfunded/withdrawal liability is negligible. We don't live in an ideal world (financially).</p><p>Not that sure about "many" people. I'm in a 75 yr old plan that's doing just fine. Know of any Ponzi schemes that last that long? Of course not because Ponzi schemes are just that... schemes with no possible way of survival. Properly run pensions last indefinitely.</p><p>BTW, over 75% of the 1400+ multi employer plans were green zone last year, a poor performance year.</p><p>100% of ponzi schemes were red.</p></blockquote><p></p>
[QUOTE="Inthegame, post: 2366133, member: 37112"] It's more of a hook that deters companies from opting out at contract renewal time. Remember these employers signed the participation agreement willingly. Show me a company that starts business expecting to go out of business. The bankruptcy immunity protection companies [B]are[/B] allowed is one of the prime causes of pension collapse. Once again Hostess is a perfect example. Because their contribution rates are predetermined by the CBA. The market has a large impact. If their plan has a poor investment year, the participating employers don't kick in more annually to make up the underperformance, instead the unfunded liability increases. If the plan trustees vote a pension increase, the unfunded liability increases. If new mortality tables are used and we all live longer...you guessed it, unfunded liability increases. In an ideal world the funded % stays at 100% and unfunded/withdrawal liability is negligible. We don't live in an ideal world (financially). Not that sure about "many" people. I'm in a 75 yr old plan that's doing just fine. Know of any Ponzi schemes that last that long? Of course not because Ponzi schemes are just that... schemes with no possible way of survival. Properly run pensions last indefinitely. BTW, over 75% of the 1400+ multi employer plans were green zone last year, a poor performance year. 100% of ponzi schemes were red. [/QUOTE]
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UPS Teamsters keeping their next two Wage increases
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