Central States Future

Discussion in 'UPS Retirement Topics' started by BigBrownBlues, Oct 13, 2007.

  1. I am going to speculate about what might happen if this contract is approved:

    * UPS pulls out, pays 6.1 billion, 4 billion gets paid to Central States(CS) after taxes
    * CS is then 70% funded and avoids ERISA intervention for 2008
    * UPSers in CS keep their years and money in CS(only new funds to new fund)
    * UPSers look forward to 2 pension checks at retirement 1 CS, 1 new fund
    * By 2009 CS is less than 70% funded because UPS isn't contributing any more
    * ERISA regulation begins
    * Financial situation in CS is bad and will only get worse
    * ERISA slashes beneifit levels for new and existing retirees to keep it afloat
    *UPS has no obligation to make up for cuts to CS checks for UPSers
    **UPS has anticipated this, its in the new contract!
    *UPSers who are retiring get only part of thier CS pension but all of new pension
    * Yellow ABF etc. pull out of CS to cut losses and fund goes belly up
    *UPSers recieve only a fraction of thier CS pension under bankruptcy laws
    UPS basicaly says I told you so. And at least you have your 5 or so years of the new pension to get you through your golden years;it's not our fault CS went under. LETS BE CLEAR;2 PENSION CHECKS,NO OBLIGATION FOR UPS FOR CS PORTION, EVEN FOR UPSERS!!!!
  2. chocolate thunder

    chocolate thunder New Member

    you nailed it ups sees this and wants out. they are paying 6 billion plus and risking their aaa rating way to good to be true all smoke and mirrors 11 years later 25 and out 2000 a month what about inflation that is 1997 rate:w00t:
  3. GuyinBrown

    GuyinBrown Blah

    I think that you're slightly off in your assumption. Yellow would also have to pay a withdrawal penalty to pull out of CS and that influx of early cash would more than likely help the fund in the long term. I do agree that there is still a lot of uncertainty surrounding CS and will be for a long time to come.
  4. Just Lurking

    Just Lurking Member

    CS get the full $6.1B from UPS. The wording that UPS will pay $6.1B pre-tax means the following. UPS pays the full amount then writes off that amount on their profit has an expense. They will get some amount of money back. Its the same principle that everyone uses with deductions to reduce their tax liability.
  5. I stand corrected on this. The outcome is the same however(70% funded). I was lead to believe by management that UPS would be taking care of its CS workers if CS eventually had to cut payouts. It is now clear from the contract wording they will not. We will be relying on the failing CS pension for the amount we have earned up until now. I don't blame UPS for wanting out, but I thought they would try to take care of their own.