Central States Pension Fund cuts

Discussion in 'UPS Union Issues' started by rod, Oct 15, 2015.

  1. rod

    rod retired and happy

    Since I've been gone for over 2 weeks and don't feel like reading the 17,908 post that have been posted since I was last here I just want to say my love letter from the Union was waiting for me when I got home today. Its kind of a slap in the face when you read it in black and white. Mine reads "Under Central States' proposed pension rescue plan, effective July 1,2016, your monthly benefit is proposed to be reduced from $3,000.00 to $1,500.00." So much for all the rumors about it being cut only a third or not at all for UPS employees. If its like any other big cut forced down labors throat in the last 25 years it will soon be followed by an announcement that all the major players in the Union will be getting big time raises.
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  2. Mugarolla

    Mugarolla Light 'em up!

    That is the proposed cut by the CSPF.

    I'm not so sure that UPS agrees that they can do this under the carve-out they got from Congress.

    I wouldn't be surprised if UPS lawyers are already working on this.
  3. oldngray

    oldngray nowhere special

    If you retired from UPS before 2008 in Central States you got screwed. It was in the fine print from when UPS bought out the pension plan and left older retirees hanging. For now it is only a proposal and has to be OK'ed but not looking good.
  4. rod

    rod retired and happy

    I believe its more than "not looking good"------its more like "bend over".
  5. InsideUPS

    InsideUPS Active Member

    .........and soon, it will be "If you retired from UPS before 2018 in Central States you got screwed". The current employees of today are understandably concerned that the contract language will continue to change and also reduce their pensions as well.... I just had a feeder driver come up to me last night and said he will never be able to quit working based on the letter he just received from CSPF......

    I suggest that UPS start reserving more handicapped parking areas for it's employees....me included.
  6. Ghost in the Darkness

    Ghost in the Darkness Active Member

    I will need a handicap accessible truck... so i can get in and out with my rascal.
  7. Faceplanted

    Faceplanted Well-Known Member

    oooo. Because retirement just comes out of no where right? Why plan when u can live well beyond your means and count on a pension that isn't truly in your control

    Seems like lots of people at ups are surprised they will one day retire, kind of like how management gets surprised every year that Christmas is coming.
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  8. Mugarolla

    Mugarolla Light 'em up!

    The reason I say that UPS may not agree with the CSPF proposed cuts is not that they care anything about the pre 2008 retirees, I say this because it is going to cost them a lot of money for the post 2008 retirees.

    They supposedly got a carve-out from Congress in the Omnibus Spending Bill saying that UPS retirees will be last in line to receive cuts.

    The Center For Pension Research at Boston College University studied the CSPF. It concluded that a 30% cut across the board would keep the CSPF solvent indefinitely.

    The CSPF cut most retirees by 50%, the greatest amount provided by law. UPS retirees are a minority of retirees receiving benefits from the CSPF.

    So if most of the retirees received a 50% cut, that would leave UPS retirees, last in line to receive cuts, to expect to see cuts around 5-10% Maybe even none at all.

    This would give the average cut of all retirees around 30%. The amount the CFPR concluded would keep the CSPF solvent indefinitely.

    And UPS cannot separate the pre and post 2008 retirees. They have to fight the cuts according to the law in the Omnibus Spending Bill.

    By fighting to save themselves billions of dollars for post 2008 retirees, it would have a trickle down effect of saving pre 2008 retirees from massive cuts.

    Only time will tell what happens.
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  9. I H8 TRUMP!!!

    I H8 TRUMP!!! Active Member

    Don't say this. According to LB and WL you'r anti-Hoffa if you make stuff like this up!
  10. hyena

    hyena Well-Known Member

    Sorry to hear this rob hopefully some of us younger Teamsters can help rebuild this great Union to what it was in the past
  11. Monkey Butt

    Monkey Butt Obscured by Mirrors Staff Member

    Any new news?
  12. Lead Belly

    Lead Belly BANNED


    Attached Files:

  13. rod

    rod retired and happy

    July 1, 2016-----the ax will fall---on us select few.
  14. TommyTeke

    TommyTeke New Member

    Are the proposed cuts as deep as the law allows for all affected and ,or will there be a second wave in the future ? any thoughts?
  15. oldngray

    oldngray nowhere special

    I think cuts were down to 110% of PBGC so maybe they could cut another 10%?
  16. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    By law they can't cut any further.
  17. Ms.PacMan

    Ms.PacMan Well-Known Member

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  18. InsideUPS

    InsideUPS Active Member

    Thank you for the Treasury link Ms. PacMan... Interesting reading for sure... Bad news for Tier 1 UPSers.

    For Tier 3 UPSers....I wonder how well the answer to question 17 at http://www.ibtupspensionfund.ups.com/IBT_QA.htm#q7 would stand up in court considering the ambiguity of the contract language as outlined on page 92 of the current contract.

    (NOTE: Seems odd that the document submitted to the Treasury Department by CS did not have a facsimile of the current contract language instead of the draft images that they used...while they did use actual images from the two previous contracts.)
    (checklist 30)
    http://www.treasury.gov/services/AppsExtended/(Checklist 30) Tiers and UPS.pdf
  19. oldngray

    oldngray nowhere special

    You need to also look at question 2

    Q2: Who is eligible to participate in the new UPS/IBT Plan?
    A: Current, full-time UPSers, who are covered by a collective bargaining agreement(CBA) between UPS and the IBT that provides for participation under this Plan and who participate, or would become eligible to participate, in the CSPF as of December 26, 2007, will immediately participate in the new Plan on January 1, 2008.
  20. Mugarolla

    Mugarolla Light 'em up!

    I don't think that it will be a court issue for tier 3 employees.

    If UPS did not make up the pension reduction, this would change the retirememt plans for most employees.

    Who could stand to lose $1000-$1500/mo from their pension? Very few.

    This would put package car drivers working well into their 60's.

    Could you imagine over half the package car drivers in the country being over 60?

    UPS does not want this scenario, so I don't even foresee them fighting this issue for the tier 3 employees.

    Get them out and replace them with $18/hr young kids that takes them 4 years to reach top pay.

    UPS would save money in the long run.