Central States Pension- UPS retirees

Discussion in 'UPS Retirement Topics' started by WhatsUP, Apr 21, 2010.

  1. WhatsUP

    WhatsUP Member

    If Central States becomes Insolvent, What happens to the UPS retirees who retired under the Central States Pension Plan. The way i understand it , those with 30 yrs service get about $1100 a month and those with 25 yrs get about $900 by the PBGC.
  2. Dustyroads

    Dustyroads New Member

    I believe you are correct, sir.
  3. satellitedriver

    satellitedriver Moderator Staff Member

    At least the UPS/teamster plan will cover the difference, until the age of 65, under this contract.
    If you retire after the 2013 contract????
    My SWAG ,
    -(scientific wild ass guess)-
    is that the comfort kiss of good bye, by UPS, will be taken away in the next contract.
    Plan for the worst and hope for the best.
  4. tieguy

    tieguy Banned

    thats the popular central states pension conspiracy theory being mused about. I don't personally think UPS can legally circumvent their pension obligations by doing so but I guess we'll find out.
  5. satellitedriver

    satellitedriver Moderator Staff Member

    No theory involved, just fact.
    UPS has met every legal obligation to Central States.
    Central States sent a letter out over a year ago, to those covered under the CS pension plan.
    Basically, it said that by 2012 that the fund will be broke and taken over by the federal authorities.
    UPS's liabilities and responsibilities only apply to the years after 2007, in the new pension program.
    Contractually UPS has to make good Central States pension promises, until the 2013 contract.
    2013 will be when we find out.
    Heck, the world is suppose to end in 2012, so why worry.:peaceful:

  6. brownmonster

    brownmonster Man of Great Wisdom

    Why is it that these funds all lost so much money during the last 2 crashes, yet they didn't recoup most of it in the subsequent upturn in the markets? The markets are up 60% so you would think the funds gained some back. Do they buy high and sell low like most investors?
  7. 705red

    705red Browncafe Steward

    Hey Tie, Sat hit it on the head. It has to be negotiated in the next contract the difference from what CS pays and if UPS will make up the rest. Something that was not disclosed during the last contract.
  8. WhatsUP

    WhatsUP Member

  9. WhatsUP

    WhatsUP Member

    The UPS retirees in the Central States Fund during the UPS withdrawal should of received the same pension guarantees as the ones in the New Pension Plan. Something about this deal does not seem right. Do we have any pension experts out there?
  10. scratch

    scratch Least Best Moderator Staff Member

    No, but we have a lot of people who think they are pension experts. Every time I ask somebody a question about pensions, I get a different answer. I'm vested in UPS's plan for my part time years, Central States, and the new Teamster/UPS Plan. I'm 52 and working on year 35, I want to retire as soon as I can.
  11. tieguy

    tieguy Banned

    seems to me you were the one whining on another thread about people posting on topics they don't know anything about. Could you post a copy of your doctorate on pension plans for us to see?
  12. Monkey Butt

    Monkey Butt Dark Prince of Double Standards Staff Member

    At least 2 or 3 thousand. :dead:
  13. rod

    rod retired and happy

    I'm surprised our resident know-it all hasn't chimed in on this.
  14. pickup

    pickup Well-Known Member

    Apparently, Klein has found greener pastures to fertilize.
  15. rod

    rod retired and happy

  16. 705red

    705red Browncafe Steward

    Yet you continued to post nonsense and refused to attempt to provide facts for your argument. Here is the link to the contract, look at article 34, read it slowly!

    Im sure even you can understand and admit that since UPS spent 6.1 billion to buyout of the CS plan it no longer has any liabilites to that plan or its particpants.
  17. satellitedriver

    satellitedriver Moderator Staff Member

    I am not a pension expert.
    I can, and have, read the documents that explain the change over.
    By my best understanding;
    If you retired under CS before this present contract you will receive only what CS and the government can offer when CS goes under.
    -(and it will, IMO)-
    If you retire during this contract, UPS will make good the total promised pension, until you reach the age of 65.
    Then, CS is responsible for the accumulated years pension promise up to 2007 and UPS will payout pension accumulated for the years earned after 2007.
    The math even gets more complicated when you have to start deducting .5% for every month that you are under the age of 65, and then,
    deduct another 15% if you want your spouse to get 1/2 of your pension when you die.
    I am sending in the required form for a " retirement estimate" this weekend to get a definitive answer on what 25yrs will get me under this new plan.
    No matter what the monetary answer is, I will retire under this contract for one main reason.
    Health Insurance.
    Under this contract,
    $400 a month will keep my wife and myself insured until we hit 65, with no increase of premium.
    I wish all the best of Luck to all on the next contract, but I will not be around to see it.

  18. WhatsUP

    WhatsUP Member

    I think your Health Insurance changes from contract to contract. That $200 per person is only for this current contract. During the next contract , It could change for the better or worse for current employees as well as for the retirees.
  19. EmerCond421

    EmerCond421 Member

    So, if I understand correctly, if I work another 4-9 yrs. to reach 25 or 30 yrs and I retire with 30 at 65 yoa I'm looking at possibly $1100.00 per month plus what the government decides to put in?

    That is if it is not addressed in the next contract, correct?
  20. tieguy

    tieguy Banned

    Red you got me , I give up. You really are a pension expert. My bad:happy-very: