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UPS Union Issues
What happened in the 2008 contract??
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<blockquote data-quote="JonFrum" data-source="post: 651161" data-attributes="member: 18044"><p>I thought my "No" answered the question, but to elaborate, multi-employer pension funds like Central States don't go bankrupt. If the day ever comes when they can't pay all the monthly benefits to their retirees (called insolvency,) then they get a loan, (not a grant, a loan, that must be repaid) from the Pension Benefits Guarantee Corporation (PBGC) to help them through their rough time. The fund then continues to cut benefits and raises contribution levels until the financial ballance sheet improves.</p><p></p><p>Single-employer funds, by contrast, are dependent on just one employer for their financial health, so if that sole employer goes bankrupt, the fund is screwed. The fund must be taken over by the PBGC and benefits are paid on a reduced basis. Single-employer funds fail about one hundred times more often than multi-employer funds. The few multi-employer funds that have failed were concentrated in a single industry where the industry failed, like Steel. Central States, despite it many woes, is diversified among many employers in many different industries.</p><p></p><p>Central States had $19.3 billion in assets as of Sept. 30, 2009 from which to pay monthly retirement checks. Even if you subtract $6.1 billion from that, they are still not close to insolvent.</p><p></p><p></p><p>It's a <u>multi</u>-employer plan. That's its built-in insurance. Employees from other companies have contributions made by those other companies on their behalf all their working life. Employees from UPS have contributions made from UPS on their behalf all their working life. Admittedly there is some subsidizing going on, but that's the price you pay for being among the survivors.</p><p></p><p>By the way, most UPSers are male, and married when they retire. Men usually die five or six years earlier than women do. If male UPSers elect the surviving spouse option so their pension goes to their widow when they die, do you object that the spouses "never contributed a minute of work for UPS?"</p><p></p><p>Central States is a huge pension plan. It surely has more than a "few remaining viable employers." Anybody know how many hundreds?</p></blockquote><p></p>
[QUOTE="JonFrum, post: 651161, member: 18044"] I thought my "No" answered the question, but to elaborate, multi-employer pension funds like Central States don't go bankrupt. If the day ever comes when they can't pay all the monthly benefits to their retirees (called insolvency,) then they get a loan, (not a grant, a loan, that must be repaid) from the Pension Benefits Guarantee Corporation (PBGC) to help them through their rough time. The fund then continues to cut benefits and raises contribution levels until the financial ballance sheet improves. Single-employer funds, by contrast, are dependent on just one employer for their financial health, so if that sole employer goes bankrupt, the fund is screwed. The fund must be taken over by the PBGC and benefits are paid on a reduced basis. Single-employer funds fail about one hundred times more often than multi-employer funds. The few multi-employer funds that have failed were concentrated in a single industry where the industry failed, like Steel. Central States, despite it many woes, is diversified among many employers in many different industries. Central States had $19.3 billion in assets as of Sept. 30, 2009 from which to pay monthly retirement checks. Even if you subtract $6.1 billion from that, they are still not close to insolvent. It's a [U]multi[/U]-employer plan. That's its built-in insurance. Employees from other companies have contributions made by those other companies on their behalf all their working life. Employees from UPS have contributions made from UPS on their behalf all their working life. Admittedly there is some subsidizing going on, but that's the price you pay for being among the survivors. By the way, most UPSers are male, and married when they retire. Men usually die five or six years earlier than women do. If male UPSers elect the surviving spouse option so their pension goes to their widow when they die, do you object that the spouses "never contributed a minute of work for UPS?" Central States is a huge pension plan. It surely has more than a "few remaining viable employers." Anybody know how many hundreds? [/QUOTE]
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