Central States Pension

[bacha29]

2025

From -
Pension Crisis | Central States Pension Fund


"When the PBGC assumes pension payments, they are automatically reduced from the full benefit (example: a maximum guarantee of $1,072 per month for a Central States participant with 30 years of service). With more than 100 pension plans covering 1.3 million people projected to fail in the next 20 years, the PBGC is also expected to run out of money. In fact, it is projected that the PBGC’s multiemployer program will run out of money in 2025. If that happens, pension benefits would be reduced to essentially zero—no Central States Pension Fund participant would get any meaningful pension because Central States and the PBGC will both be out of money."

When the airlines filed for bankruptcy following 9-11 they dumped their pension obligations onto the PBGC followed shorty there after by the Great Recession giving it little time to recover. Then again when you look at those poor slugs over at X Ground killing themselves for half the wages and zero benefits and the real tragedy is that they have no idea what they're going to get hit with when the physical beating exacts it's price.

 

[bacha29]

Still an active PT employee (40+ years) but our PT pension is currently at $2275/month (35 years). I am now working at UPS as my retirement job with 7 weeks vacation and full healthcare benefits. Will soon be collecting full SS checks without penalty. We have one PT female employee that is 72 and is not only collecting full SS.....she is also collecting her UPS pension as mandated by the law.

Full SS benefits without penalty huh? No you won't have a monthly benefit deduction but you'll pay federal income tax on those benefits if your total income exceeds the income threshold. it's a balancing act.

 

[PT Car Washer]

Full SS benefits without penalty huh? No you won't have a monthly benefit deduction but you'll pay federal income tax on those benefits if your total income exceeds the income threshold. it's a balancing act.

100k/yr PT job? Not too bad.

 

[Karma...]

what happened to the 6 billion dollars ups paid to cs to get out of the plan ?.....in the poker game called contract negotiations when ups offered the amounts to retire depending on years and age the members should have voted yes instead of hoping for the best with the union.......its a quagmire

 

[badpal]

I wonder if there is a welfare program that would give me a new Harley?

Contact Elizabeth Warren , she will add it to her list.

 

[InsideUPS]

what happened to the 6 billion dollars ups paid to cs to get out of the plan ?.....in the poker game called contract negotiations when ups offered the amounts to retire depending on years and age the members should have voted yes instead of hoping for the best with the union.......its a quagmire

I spoke with a group of older inside FT employees last night (all formerly package car drivers) and they were asking the same question you just brought up. "What happened to the all the money that UPS paid to CS to get out of the plan?" I suggested to them that we all contact our BA and request a meeting with a representative from the CS. We need to hold CS and our Union accountable and ask these types of questions.....not only for ourselves but for other Teamsters that could potentially face similar issues in the future.

Here is an interesting article from Forbes that gives more insight into what has caused the financial demise of our CS plan.

Understanding The Central States Pension Plan's Tale Of Woe

I found this statement particularly interesting.

"However, UPS withdrew in 2007, with a hurried contract ratification with the Teamsters enabling them to avoid changes to multi-employer plans coming into effect in 2008. Because the withdrawal liability payment required under legislation at the time did not fully compensate the plan for the losses it would experience, this and other withdrawals brought about further decreases in pension"

 

[InsideUPS]

Is she single? Asking for a friend.

Unofficially...... she is married to me and we refer to each other as "work wife" and "work husband" ;-) You can tell your friend however that she is single... feisty.... and in good health. FWIW....she has an infatuation with the mafia and Italian men in general. Start talking about the Godfather and your good to go...;-)

 

[badpal]

I spoke with a group of older inside FT employees last night (all formerly package car drivers) and they were asking the same question you just brought up. "What happened to the all the money that UPS paid to CS to get out of the plan?" I suggested to them that we all contact our BA and request a meeting with a representative from the CS. We need to hold CS and our Union accountable and ask these types of questions.....not only for ourselves but for other Teamsters that could potentially face similar issues in the future.

Here is an interesting article from Forbes that gives more insight into what has caused the financial demise of our CS plan.

Understanding The Central States Pension Plan's Tale Of Woe

I found this statement particularly interesting.

"However, UPS withdrew in 2007, with a hurried contract ratification with the Teamsters enabling them to avoid changes to multi-employer plans coming into effect in 2008. Because the withdrawal liability payment required under legislation at the time did not fully compensate the plan for the losses it would experience, this and other withdrawals brought about further decreases in pension"

Good article. i had always heard that central states was loaning pension fund money too shady characters back in the day for 2 %, when they could have got a lot more in the bank, But guess thats all water under the bridge now.

 

[badpal]

Unofficially...... she is married to me and we refer to each other as "work wife" and "work husband" ;-) You can tell your friend however that she is single... feisty.... and in good health. FWIW....she has an infatuation with the mafia and Italian men in general. Start talking about the Godfather and your good to go...;-)

Maybe 1989 will make her an offer she cant refuse.

 

[Bad Gas!]

I was raised to believe there are only two sure things----death and taxes. I will be fine "if" I end up only getting $1200 but I would be lying if I said I wasn't pissed.

That sux so bad, Rod. I retired in 2017 but we all know the guys that retired 2007 and before. Can't believe it. And I know a future contract could hit my 3660 a month. . We earned these bennies pushing pkgs. Ups should back you guys up. It's a shame. And it sux the union can't help it either.

 

[rod]

That sux so bad, Rod. I retired in 2017 but we all know the guys that retired 2007 and before. Can't believe it. And I know a future contract could hit my 3660 a month. . We earned these bennies pushing pkgs. Ups should back you guys up. It's a shame. And it sux the union can't help it either.

They whole thing fell apart under the control of the Government. If anyone is to blame its Uncle Sam. They took over control as watchdogs of the pension plan back in I believe 1985 when Jimmy Hoffa Sr. was using Teamster money to invest in Las Vegas (and doing quite well at it I might add). They should have left him alone.

 

[Jackburton]

My pension will go from 3000 a month to about 1200. That 1200 will be out of your tax money. Govt. will take it over at the reduced rate. Eventially all pensions will go broke and the government too--------buy lots of bullets for when that day comes.

I just need one.

 

[BrownFlush]

I threw my yearly letter away as usual.
I think it was at 72% but was critical status. I just got to thinking 65% was when critical status begun.
Oh well, 9 1/2 years and counting drawing from a critical fund.

 

[rod]

I just need one.

I'm going out in a blaze of glory and taking as many as I can with me.

 

[Brownslave688]

Does your 401K match allow you to withdraw about 5K a month for life at age 50. Plus medical?

And plenty left over if the match was what goes towards 401k

 

[Jkloc420]

Just got my annual letter from Central States today. They are down to 27% funded. I guess I'll have to break the news to my wife that she has to go back to work.

you only need enough money for cigs and booze

 

[1989]

And plenty left over if the match was what goes towards 401k

How much will your medical be between ages 50-65?

 

[Mugarolla]

reading the "fine print" of the Central Supplement..... EVERYONE stands to lose some portion of their pension if the CS pension plan is taken over by the government.

Incorrect.

but you still stand to lose money considering part of your pension is being paid from the CS plan.

Again, incorrect.

It seems clear to me from reading this language that UPS is off the hook for any offset in your pension (regardless of when you retire) if CS goes belly up. "as permitted or required by law".

Strike 3. Again incorrect.

It may seem clear to you, but your opinion is incorrect.

I explained this before. If you really want to know, read on.

I know what the clause says and I know what the clause means. You are interpreting it incorrectly.

The offset is what CSPF pays, not what they should pay.

Let's say Cheryl worked for UPS for 30 years. She is retiring with a $3000/mo pension at age 62. She has 10 years in the UPS pension and 20 years in the CSPF. I will round numbers for easy math.

UPS will pay Cheryl $3000/mo until she turns 65. When she turns 65, UPS will offset what they pay her by the amount that CSPF pays her. Her 20 years in CSPF gives her, say, $2000/mo.

UPS offsets $2000/mo. So how much does UPS pay her? They pay her full pension, $3000 minus the offset, $2000. So UPS pays her $1000, and when added to what CSPF pays her, she still receives her full $3000 pension.

Now, CSPF reduces their portion of her pension by $1000. She now only gets $1000 from CSPF. How much does UPS pay?

The reduction will NOT be included in the offset. UPS cannot include this $1000 reduction in the offset. So what can they offset? They can only offset the $1000 that the CSPF will pay her. They cannot offset the $1000 reduction. Remember, the contract says that the reduction will NOT be included in the offset.

So UPS pays her full pension, $3000 minus the offset, $1000. UPS pays her $2000 added to the $1000 from the CSPF and she still gets her full $3000 pension.

This is what the contract says and this is what the contract means.

To prove it, let's take the exact opposite of what the contract says. Let's say that the contract says that the reduction WILL be included in the offset.

UPS can now include in the offset the $1000 that the CSPF pays her AND the $1000 reduction. Remember, the contract now says that the reduction WILL be included in the offset. So what does UPS pay?

They pay her full pension, $3000 minus the offset, $2000. UPS pays her $1000. Add the $1000 from the CSPF and her pension is now only $2000.

So the wording in the contract, whether the word NOT is in there means two different things. As it should. They are exact opposites. If NOT is in there, UPS pays any reduction. If NOT is not in there, UPS does not pay any reduction. The word NOT is in there, so UPS pays any reduction from the CSPF portion of her retirement.

I'll go one step further to prove that I am right.

The CSPF knows that the clause in the contract means that UPS has to make up any reductions per their letter sent to every UPS employee in tier 3.

The Teamsters know that the clause in the contract means that UPS has to make up any reductions per Hoffa's letter to Congress 2 days before they voted on the Omnibus Spending Bill.

And.....wait for it......your employer, UPS, knows that the clause in the contract means that they have to make up any reductions per the press release issued 3 months after the Omnibus Spending Bill was passed.

So if I'm the one confused as to what the contract says, then so is CSPF, the Teamsters and UPS.

Do you know how many contract lawyers UPS has? If the clause did not mean what I said it meant, what the CSPF said it meant, what the Teamsters said it meant, then these contract lawyers would have debunked it long ago.

They haven't because they can't. It means what I said it means. What the CSPF said it means. What the Teamsters said it means. What UPS said it means.

Since this was such a long post, I'll make one more point. You said your facts were based on the wording of the clause and the retirement calculator.

The retirement calculator says nothing about any cuts. The retirement calculator does not say whether UPS is liable for, or is not liable for, any cuts. The retirement calculator does not address any cuts because they are not here yet. The only thing the retirement calculator tells you is what your retirement will be and who pays what portion, when you retire. The CSPF portion is based on no cuts at this time.

And your fact about what the contract says, that is just your opinion. My opinion on what the contract says and means is backed up by the CSPF, the Teamsters and UPS. Your opinion is backed up by you, and only you.

So someone may be confused, but it is not me.

 

[oldngray]

Incorrect.



Again, incorrect.



Strike 3. Again incorrect.

It may seem clear to you, but your opinion is incorrect.

I explained this before. If you really want to know, read on.

UPS isn't off the hook .. yet.

It could still change in future contracts.

 

[Brownslave688]

UPS isn't off the hook .. yet.

It could still change in future contracts.

You can bet when it comes down to it they won’t be forced to pay.