What are you guys hearing about the pension held by central states

Discussion in 'UPS Retirement Topics' started by balland chain, Feb 21, 2013.

  1. balland chain

    balland chain Member

    From what we are hearing here in the southeast is that UPS will no longer guarantee the years of service pension paid into the Central States plan. If that happens we would loose about 1/3rd of our pension. They will only cover the number of years since they, UPS took over the pension. This is very scary, if this is true, spread the word and vote NO !!!
  2. reydluap

    reydluap Active Member

    ball' In our Master Contract that we are working under right now, Article 34,paragraph 2 and paragraph 6 (after years of service criteria) shows you just what you are describing. We already voted for it.
  3. GameCockFan

    GameCockFan Member

    It doesn't say that at all. Please explain.

    The UPS/IBT Plan will recognize full-time service in the CS Plan
    for determining eligibility for the benefits in this section and will
    offset at Normal Retirement Age the benefits accrued from the CS
    Plan commencing at Normal Retirement Age. If the benefit paid
    from the CS Plan is reduced as permitted or required by law, the
    amount of such reduction shall not be included in this offset

    2nd paragraph
    The benefit formula for current or future full-time employees
    who are participants in the UPS/IBT Plan will be as set forth below
    for each year of future service (hours worked in Covered
    Employment on or after the effective date) up to a maximum of thirty-
    five (35) years of Credited Service (such limitation is only applicable
    to service pensions). This benefit is unreduced if payable at
    Normal Retirement Age (age 65) and 5 years of vesting service or
    at age 62 with 20 years of Credited Service. Benefit payments may
    begin as early as Early Retirement Age (age 50 with five years of
    vesting service) and are reduced 6% per year for each year and partial
    year prior to Normal Retirement Age. There shall be no reduction
    or change in the level of benefits described herein unless negotiated
    and agreed to by the Union.
  4. GameCockFan

    GameCockFan Member

    No one in Central States would vote for that. Covers about 44,000 active employees. If it somehow did pass I'm sure most everyone in CS would walk.
  5. balland chain

    balland chain Member

    That language can change under this new contract. Just like we pay nothing for our insurance, now the Co. wants us to pay part of it. UPS can change the language, just like they did years ago when I started. We had a 20 and out at any age with paid ins, 25 and out with paid ins. 30 and out with paid ins. They are all gone, along with some trivial items such as a christmas bonus, a turkey, safe driving awards (gift that we could choose). History has shown that we always loose something in the contract . I am just wondering what it will be this time. As of July 31, that contract is no longer valid. I wish the company had to honor the contract that was is place when we started, but that is not the case.
  6. trickpony1

    trickpony1 Well-Known Member

    ball and chain-
    I'm trying to get a straight answer from someone about those of us who could retire with 30 years credit prior to July 31.
    If we choose to work into the new contract, will the language of the current contract still apply for the time credited?
    I would think it would based on the fact that my PT years (late 70's) will be paid to me exactly as stated in THAT contract language.
    I don't want to lose my ass just because I worked into the new contract.
  7. kenco80233

    kenco80233 New Member

    February 26, 2013: The Hoffa administration has signed on to a joint employer-union proposal to allow "deeply troubled" pension funds to slash accrued benefits, even for Teamsters who have already retired.

    This proposal, which could be aimed squarely at the Teamster Central States Fund, comes from the National Coordinating Committee for Multiemployer Plans, a committee of employers, unions and pension plans.

    UPS is a prominent member of the group, which also includes several pension funds, employer groups, and some unions.
  8. reydluap

    reydluap Active Member

    Game' I have read 'Article 34' SO many times and and understand what I (we) read. I have even spent a few hours at my local Union hall speaking to our BA about just what you have highlighted in red. My BA stated that what is written is not exactly so. Somewhere in the contract book (I can't find it now that I need to reference it) it states this contract agreement can not supercede Federal laws. So if the feds have to take over Central States, they can pretty much step on this contractual agreement. Do I want to retire and find out in my later years I shot myself in the foot?

    I'll stand corrected if what is printed stands. I'm just basing my opinion on what is being shared with me at my Local . Believe me, 36+ years of UPS is enough! But I don't want to be handing out carts at Walmart when I'm 65 because I can't pay my health care premiums.

    On another note. I just read page 160 in our contract book. Never noticed it before today. "Memorandum of Understanding", in summary, UPS won't change the pension plan agreement for at least ten years. Hmmmm. Go read it yourself.
  9. pretender

    pretender Active Member

    Believe me--I am in no way an expert on this, but I do not believe that UPS making up the difference in whatever the Central States reduction might be, would be superceding Federal Law. Although, this could be wishful thinking on my part. I am guessing that the reference to superceding Federal Law is just a standard disclaimer that would be included in any contract.

    I do think that it is possible that the language could change in the new contract. So, anyone who is planning on retiring in the near future, would be well served to pay close attention, and find out all they can, so that they can act quickly...
  10. GameCockFan

    GameCockFan Member

    If the Feds come in and take over Central States you will get what your entitled to under federal law. If the contract says you get xxxx from Central States and that is in conflict with federal law, then the law will supercede the contract. For example contract says CS owes you 3,000 per month. Fund becomes insolvent. CS is taken over by Feds, your only going to get what the law allows for in a multi-employer plan. Say $1000. The amount of that reduction 2,000 will not be included in the offset. UPS will have to make up that difference. The law applies only to the CS plan and doesn't affect the amount UPS owes. Unless new laws are passed that deal with this situation, at which time those laws would again supercede contract language. There isn't a law addressing this at this time. The contract is legally binding and UPS would have to honor it as written(unless the UPS/IBT plan also becomes insolvent). However, in subsequent contracts, this provision may or may not be continued and will need to be negotiated. Can they change this after you've already begun to draw your pension? I would think not, you should be grandfathered in, but it reality I would consult a lawyer as I really don't know for sure.

    The new UPS/IBT plan is a single employer plan and subject to different laws and regulations than the old CS plan. If it too becomes insolvent then all bets are off. The federal laws will be followed and the contract would be nullified. But the laws are more favorable and generous to employees in single company plans.

    This is, to the best of my knowledge, how I understand it to be.
  11. GameCockFan

    GameCockFan Member

    As it stands now, if you retired and receive your pension from only CS and the fund becomes insolvent you are SOL. I suppose they could slash accrued benefits and lower your pension in an effort to try and stabilize the fund even for already retired members and cause a drop in their pension amounts. It would be a hard pill to swallow but may be better than having the feds step in. At that point, the law will supercede any agreement the union/company have and benefits will plummet. The current multiemployer maximum benefit is:

    • 100% of the first $11 of the monthly benefit rate, plus
    • 75% of the next $33 of the monthly benefit rate, times
    • participant's years of service.

    so for 30 years under central states $1072/month. or less if you chose joint survivor etc..

    Even if they did reach this type of agreement, under our current contract, UPS would still have to make up the difference for retirees who retired under the UPS/IBT plan. If you retired prior to August 1, 2008 you would be out of luck.(Before ratification of current contract). This is something we should be very diligent in watching during negotiations. This is something we all should strike over if they try to change this language as it a forgone conclusion that CS is going to fail at some point in the future.

    For single-employer plans ended in 2013, workers who retire at age 65 can receive up to $4,789.77 per month, or $57,477.24 per year. The guarantee is lower for those who retire early or when there is a benefit for a survivor. The guarantee is increased for those who retire after age 65.
  12. reydluap

    reydluap Active Member


    THANK YOU for pointing out my mistake. My BA was feeding me a line of BS! I'm posting a link here with questions and answers to our Central States Plan. Question/answer #24 provides the answer you stated.

    Once again, THANK YOU!

    UPS/IBT Full-Time Employee Pension Plan - Q&A
  13. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Think of him as your Teamster supervisor. :wink2:
  14. serenity now

    serenity now Guest

    hoax, what are you gonna do Monday morning?
  15. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    If I am awake, I'm not sure.
    I'm working on an outline for a new class I am going to be teaching so probably that.

    One thing for sure, I will not be setting in traffic for an hour and a half commuting to UPS.
  16. texan

    texan Well-Known Member

  17. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Good try tex but I live off the map to the bottom left and UPS where I worked is another 20 miles north of the map in the right top section.

    Job was good but the commute sucked.
  18. texan

    texan Well-Known Member

    That must have been a ride each day.

    Too bad they would not let you work at home.

    You might have stayed a little longer.
  19. 728ups

    728ups offending people on the internet since 1995

    Hey! I think i see Scratch's building on the map!
  20. texan

    texan Well-Known Member