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Brown Cafe UPS Forum
UPS Union Issues
Attention Teamsters in the central region.
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<blockquote data-quote="JonFrum" data-source="post: 1001348" data-attributes="member: 18044"><p>Withdrawal Lialility is not based on the future. It is money owed from the past up to the moment of withdrawal.</p><p></p><p>UPS fulfilled its legal obligation to contribute money to the Central States Pension Fund as agreed to and specified in the labor Contract. But that wasn't all they owe. The required contributions per hour worked, usually paid per month, do not fully fund the benefit levels earned by UPSer participants. Contributions might only fund, say, 80% of promised benefits. Any employer who wants to leave the fund must pay the remainder to bring the funding for their employees up to 100%. In addition any employer who seeks to leave must also bring its employees up to the 100% funding level if the Fund's assets have shrunk as a result of a bad stock market, or bad luck, or unwise investment decisions, or even if members simply lived longer than they were statistically suppose to. Ultimately employers are legally obligated to fully fund all their employees retirement benefits until the employees and their eligible spouses all die. Or until the employer withdraws from the Fund and pays up what it owes at that moment.</p><p></p><p>All employers in a multi-employer fund are legally obligated to maintain, in theory, a 100% funding level for their employees so long as the employer is a member of the Fund, and to make up any new shortfalls no matter how often they occur. But they don't actually have to make these additional payments until they announce their intention to withdraw. Withdrawal by UPS triggered the obligation to pay what what was owed all along, above and beyond the full monthly contributions UPS had been making for years.</p><p></p><p>No additional pension credit was earned by UPSers because the $6.1 billion Withdrawal Liability payment was previously owed money, not a new contribution. It's like when the bartender lets you "run a tab." If he hears you are leaving town, he'll demand you pay up before you depart. It has nothing to do with future sessions at the bar. It is payment for past drinks consumed but not fully paid for.</p></blockquote><p></p>
[QUOTE="JonFrum, post: 1001348, member: 18044"] Withdrawal Lialility is not based on the future. It is money owed from the past up to the moment of withdrawal. UPS fulfilled its legal obligation to contribute money to the Central States Pension Fund as agreed to and specified in the labor Contract. But that wasn't all they owe. The required contributions per hour worked, usually paid per month, do not fully fund the benefit levels earned by UPSer participants. Contributions might only fund, say, 80% of promised benefits. Any employer who wants to leave the fund must pay the remainder to bring the funding for their employees up to 100%. In addition any employer who seeks to leave must also bring its employees up to the 100% funding level if the Fund's assets have shrunk as a result of a bad stock market, or bad luck, or unwise investment decisions, or even if members simply lived longer than they were statistically suppose to. Ultimately employers are legally obligated to fully fund all their employees retirement benefits until the employees and their eligible spouses all die. Or until the employer withdraws from the Fund and pays up what it owes at that moment. All employers in a multi-employer fund are legally obligated to maintain, in theory, a 100% funding level for their employees so long as the employer is a member of the Fund, and to make up any new shortfalls no matter how often they occur. But they don't actually have to make these additional payments until they announce their intention to withdraw. Withdrawal by UPS triggered the obligation to pay what what was owed all along, above and beyond the full monthly contributions UPS had been making for years. No additional pension credit was earned by UPSers because the $6.1 billion Withdrawal Liability payment was previously owed money, not a new contribution. It's like when the bartender lets you "run a tab." If he hears you are leaving town, he'll demand you pay up before you depart. It has nothing to do with future sessions at the bar. It is payment for past drinks consumed but not fully paid for. [/QUOTE]
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Attention Teamsters in the central region.
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