Central States pension plan will drag every other pension fund down

[engineer 79]

The pension in Central States is in total freefall. In 2002, the pension was 59.8% funded. The next year, it dropped to 45.64% funded. In 2004, it was at 50.43%. In 2005, the pension was at 47.2% funded. Cuts had to be made, and money borrowed from the Western conference just to keep it at 47.2% funded. this is why the Western conference was hit with a 30% cut. To make matters worse, part of the money went to employees of other companies not working for UPS. This included an investment of 13.4% annual return. What do you think will happen if Central States has a bad year investing, or if they stopped borrowing money from other pension plans? Naturally, the pension plan will fold. The Teamsters are delaying the inevitable by forcing us to work longer for less money. The Teamsters will be forced to borrow from another conference next year, and that conference will take a pension cut. This will go on every year as the Teamsters struggle to keep the Central States pension solvent. Soon, every pension plan in the country will be hit. This has to stop now, but the only way to do it it to create a separate union (APWA) that will fund only UPS employees.

T take
E everything
A away,
M mismanage,
S steal
T the
E employees
R retirement
S savings

[wildgoose]

Originally Posted by engineer 79

The pension in Central States is in total freefall. In 2002, the pension was 59.8% funded. The next year, it dropped to 45.64% funded. In 2004, it was at 50.43%. In 2005, the pension was at 47.2% funded. Cuts had to be made, and money borrowed from the Western conference just to keep it at 47.2% funded. this is why the Western conference was hit with a 30% cut. To make matters worse, part of the money went to employees of other companies not working for UPS. This included an investment of 13.4% annual return. What do you think will happen if Central States has a bad year investing, or if they stopped borrowing money from other pension plans? Naturally, the pension plan will fold. The Teamsters are delaying the inevitable by forcing us to work longer for less money. The Teamsters will be forced to borrow from another conference next year, and that conference will take a pension cut. This will go on every year as the Teamsters struggle to keep the Central States pension solvent. Soon, every pension plan in the country will be hit. This has to stop now, but the only way to do it it to create a separate union (APWA) that will fund only UPS employees.

T take
E everything
A away,
M mismanage,
S steal
T the
E employees
R retirement
S savings

Sounds about right to me !

[derf3733]

Can't argue with those numbers.............

[Lizzard Toungue]

Originally Posted by engineer 79

The pension in Central States is in total freefall. In 2002, the pension was 59.8% funded. The next year, it dropped to 45.64% funded. In 2004, it was at 50.43%. In 2005, the pension was at 47.2% funded. Cuts had to be made, and money borrowed from the Western conference just to keep it at 47.2% funded. this is why the Western conference was hit with a 30% cut. To make matters worse, part of the money went to employees of other companies not working for UPS. This included an investment of 13.4% annual return. What do you think will happen if Central States has a bad year investing, or if they stopped borrowing money from other pension plans? Naturally, the pension plan will fold. The Teamsters are delaying the inevitable by forcing us to work longer for less money. The Teamsters will be forced to borrow from another conference next year, and that conference will take a pension cut. This will go on every year as the Teamsters struggle to keep the Central States pension solvent. Soon, every pension plan in the country will be hit. This has to stop now, but the only way to do it it to create a separate union (APWA) that will fund only UPS employees.

T take
E everything
A away,
M mismanage,
S steal
T the
E employees
R retirement
S savings

That about sums it up 79. If it wern t so sad it would be funny. I am sending my APWA card in today. Keep the posts coming 79 I enjoy reading them.

[18wheelbrownie]

read this article, central states will drag other plans down!



Committee on Ways and Means

H.R. 2830, THE PENSION PROTECTION ACT OF 2005
Chairman’s Amendment Summary
Chairman Bill Thomas (R-CA) Page 9 of 11
Committee on Ways and Means
November 8, 2005 3:15 p.m.

4. FUNDING REFORMS FOR MULTIEMPLOYER PENSION PLANS

Current Law. Multiemployer pension plans are maintained by two or more employers in the
same industry that pool their assets and liabilities to form a pension plan for workers in the
industry. The plan is governed by a board of trustees comprised of an equal number of
employers and union representatives. Benefit and contribution levels are set by the terms of
collectively bargained agreements. Employers that withdraw from the plan must pay
withdrawal liability, and the remaining employers in the pool are liable for the benefits of
workers and retirees that remain in the plan. The PBGC maintains a separate insurance program
for multiemployer plans and acts as a lender of last resort if the plan cannot pay promised
benefits.

H.R. 2830. The bill creates a structure for identifying financially troubled plans by creating two
zones.

1. Plans in the “yellow zone” are less than 80 percent funded and considered to be endangered.
Plan trustees must adopt a financial plan to improve funding by one-third within 10 years. If
the plan is between 65 and 70 percent funded, or if the plan’s actuary certifies that the one-
third benchmark cannot be met, then the plan must provide for a one-fifth improvement
within 15 years. Benefits cannot be increased if the plan is less than 65-percent funded.

2. Plans in the “red zone” are less than 65 percent funded and considered to be in critical
financial condition. Plan trustees must adopt a reorganization plan to exit the red zone
within 10 years. The plan must include increased employer contributions, restrictions on
future benefit accruals, expense reductions, and funding relief measures to help the plan exit
the red zone.

In addition, H.R. 2830 includes two reforms that apply to all multiemployer plans. First, most
amortization periods are reduced from up to 40 years under current law to 15 years. Second, the
maximum tax-deductible contribution is increased from 100 percent of the full funding limit
under current law to 140 percent of current liability.

[18wheelbrownie]

Originally Posted by derf3733

Can't argue with those numbers.............

yea, well check out these numbers, i called and recieved the 5500 forms for central states !!!


2002 current liability............$30,978,505,000
2002 current value of assets $18,515,814,000
pension fund rating 59.8%

2003 current liability.......... $33,701,366,000
2003 current value of assets$15,380,418,000
pension fund rating 45.64%

2004 current liability...........$35,150,841,000
2004 current value of assets $17,725,136,000
pension fund rating 50.43%

2005 current liability...........$39,653,718,000
2005 current value of assets $18,717,533,000
pension fund rating 47.2%

[18wheelbrownie]

someone has to have something to say about ups employees cover by central states, which is in the red zone and will not be giving any benefit increases for 10 yrs or more if the teamsters are our CBA!

[badpas]

Now tell me if this is wrong but after talking to a ups coorporate official, he told me that the total amount invested per person is paid to the teamsters but there is no law or penalty that says 100% has to be invested or there will be consequences for such actions. He also said that UPS has a seperate amount with the teamsters that covers the other companies for what ever reason. So my question is if this is true we are not only seeing 40% of our pension dollars invested but an additional amount of who knows what goes to CS in someone elses name and purpose. Hopefully someone can shed some serious truthful info to this because I will be looking into it, and if this is true then we are all idiots for not running to either our union halls and demanding more information or the apwa has the smoking weapon they need to slam the door on the teamsters once and for all. Because techniqually, if this is true, we are actually seeing less than 40% and the middle man is getting it square in the pocket book. Now I find this hard to believe knowing how tight UPS is but this person, who's name shall stay anonamus, is in the position to know and says it is because of the multi-employer pension fund and its rules. Now lets think about that and hope its not true because like I said I will find out Eventually...

[badpas]

Yes I've seen and this is just another good example of how the IBT has sent our hard earned retirement down the crapper. But what hopefully most people relize is that UPS will not give up anymore money without a long and otherwise financailly draining court battle which will result in only one way. And that is CS will cut our pensions again, probably more substantially, blame it on the company who already puts in enough for us that we should all be living the good life when we retire {and laughing because this shouldn't be happening to us} and we will stuck with this for at least 10 years probably more but hey we can't collect until we are 62 or 65 so they should plenty of time to fix this right? Where's that coolaid again!