BrownCafe
Retirement plans are in danger of temporary, permanent federal cuts
Central States Pension Fund, which represents 49 companies including Kroger and UPS, submitted its paperwork Sept. 25 and cuts will take effect July 1. Nearly $2.2 billion and the pensions of 24,625 Texans provided by Central States are at risk.
Friedman said the issue can be slowed by lawsuits and the treasury, but only Congress can fix it.
Objection could potentially stall the nearly $5 billion acquisition
The delivery giant filed the appeal after Brazil’s antitrust agency, also known as CADE, cleared the proposed transaction on Feb. 2.
“The review process in Brazil contains an option to submit an application to the senior level of CADE to consider a more in-depth review of an initial finding,“ a UPS spokesman said Thursday. ”This option has been exercised as part of ensuring a fair and thorough investigation.”
On February 9, the US Department of the Treasury (Treasury) released additional proposed regulations implementing the benefit suspension provisions of the Multiemployer Pension Reform Act of 2014 (MPRA).
The proposed regulations address MPRA’s rule for multiemployer plans in “critical and declining” status that includes benefits attributable to a participant’s service with any employer that has (1) withdrawn from the plan in a complete withdrawal, (2) paid its full withdrawal liability, and (3) assumed liability, pursuant to a collective bargaining agreement, for providing benefits to participants and beneficiaries that is equal to any benefits for such participants and beneficiaries reduced as a result of the financial status of the plan.
What the latest news means for UPS.
Right in time for Valentine’s Day, United Parcel Service and Clean Energy Fuel Corp. just announced they’re deepening their relationship with another natural gas deal. Here’s what you need to know.
The not-so-dirty details
United Parcel Service has agreed to use up to 500,000 gallon equivalents of Clean Energy Fuel Corp.’s renewable liquefied natural gas (RLNG) annually in Texas. The new terms sit on top of a pre-existing deal between the two corporations for UPS to purchase up to 1.5 million gallon equivalents of renewable compressed natural gas annually for use in California. The Texas deal is enough to fuel around 140 UPS tractors, while the Cali contract accommodates nearly 400 vehicles.
The takeaway
All told, UPS’ delivery during peak has helped derisk the stock, and underlying revenue improvements should start to shine through provided oil prices don’t continue to fall sharply. Investors shouldn’t worry too much about Amazon, because UPS isn’t purely seeking e-commerce volume.
Moreover, the investment thesis on UPS isn’t just about growing e-commerce revenue, it’s also about the company’s ability to deliver, and given the $5 billion in free cash flow in 2015 (representing 5.2% of its enterprise value), I would argue that the stock looks a little undervalued at $97.