wkmac
Well-Known Member
It's very important that you read the latest issue of Teamwork Magazine (Summer 06' issue) especially the article on page 10 entitled, "Action Plan Strenghtens Funds" and the article entitled, "Pension Reallocations" on page 12. On the "Pension Reallocations" article it breaks out a chart showing that our pension payouts have increased by 43% but the earliest age of retirement shown with 25 years service is 59.
Here a chart snapshot:
Age Contribution Years Pen.before* Pen.now* Increase
59 25 $1769.56 $2537.08 $767.52
60 30 $2278.85 $3267.26 $988.41
62 20 $1726.40 $2475.20 $748.80
62 25 $2158.00 $3094.00 $936.00
62 30 $2589.60 $3712.80 $1123.20
62 35 $3021.20 $4331.60 $1310.40
*These figures above are footnoted with the following, "Amounts based upon contribution years after 2006' with 52 weeks contributions per year for individuals who are covered by all three pension reallocations." end of data from article
The article goes to explain how they took the 04', 05' and 06' monies earmarked for healthcare and moved that to the pension fund to shore it up. This move was explained as being possible in the article on page 10 as a result in 2002' of moving CS covered employees to low price PPO's which resulted in millions of $$$'s in savings and thus result in over a $1 billion increase of pension contributions by 2008'.
On the one hand this is good, not perfect mind you, but good however it's at the hand of our healthcare coverage. Personally I'd rather have kept the healthcare monies in there but given up some of our raise over the life of the contract to be moved to the pension fund. Not possible however in the union world because this would create a conundrum for the union. Non-CS covered UPSers would not fall into this same scenario so now you have a difference in hourly rates in different parts of the country. This also would effect future dues increases for the union itself as these earmark raises would never reflect on the paycheck thus triggering the auto dues increase mechanisms.
Based on what I see, it's obvious the union and CS responded to the wailing and gnashing of teeth concerning the pension situation and will then try to recoup in the area of healthcare in the coming contract. Be interesting to watch but I'm telling you right now if they do pony up don't expect much of a raise. Also interesting this comes forth now going into the fall IBT elections and you know Hoffa will be crowing about this!
JMO.
Here a chart snapshot:
Age Contribution Years Pen.before* Pen.now* Increase
59 25 $1769.56 $2537.08 $767.52
60 30 $2278.85 $3267.26 $988.41
62 20 $1726.40 $2475.20 $748.80
62 25 $2158.00 $3094.00 $936.00
62 30 $2589.60 $3712.80 $1123.20
62 35 $3021.20 $4331.60 $1310.40
*These figures above are footnoted with the following, "Amounts based upon contribution years after 2006' with 52 weeks contributions per year for individuals who are covered by all three pension reallocations." end of data from article
The article goes to explain how they took the 04', 05' and 06' monies earmarked for healthcare and moved that to the pension fund to shore it up. This move was explained as being possible in the article on page 10 as a result in 2002' of moving CS covered employees to low price PPO's which resulted in millions of $$$'s in savings and thus result in over a $1 billion increase of pension contributions by 2008'.
On the one hand this is good, not perfect mind you, but good however it's at the hand of our healthcare coverage. Personally I'd rather have kept the healthcare monies in there but given up some of our raise over the life of the contract to be moved to the pension fund. Not possible however in the union world because this would create a conundrum for the union. Non-CS covered UPSers would not fall into this same scenario so now you have a difference in hourly rates in different parts of the country. This also would effect future dues increases for the union itself as these earmark raises would never reflect on the paycheck thus triggering the auto dues increase mechanisms.
Based on what I see, it's obvious the union and CS responded to the wailing and gnashing of teeth concerning the pension situation and will then try to recoup in the area of healthcare in the coming contract. Be interesting to watch but I'm telling you right now if they do pony up don't expect much of a raise. Also interesting this comes forth now going into the fall IBT elections and you know Hoffa will be crowing about this!
JMO.
