Central States Road Guide to Pension Plan

[wkmac]

Just got mine in the mail. I think mine was running behind as others have had their's now for a week or so based on conversations at work. Haven't completely read the whole thing, you know did the look at the pictures thing LOL, but I did see a few things that were positive. One that struck me as a positive is the Joint Surviving Spouse benefit which reduces your monthly pension based on formula to continue benefits to your surviving spouse if you go first. What struck me was if the spouse goes first then you send in the death certificate and they will restore your full benefit. I know several people who have worked and retired elsewhere that this is not the case. Gotta tip my hat to CS on that one.

Post retirement work rules are somewhat better explained and anything before age 60 in some cases is no way and in others very limited. After 60 the door doesn't completely swing open but there seems to be a lot more flexibility there. Looking at post UPS retirement makes me have to wonder about supporting broader organizing efforts by the IBT. More area they cover, more chances post retirement working may be limited. Doubled edge sword I guess or the old "damned if you do and damned if you don't!" LOL!

Again, haven't detail read the thing but anyone else have any thoughts? I was hoping to get more details about the insurance coverage and cost in retirement but only saw prescription info. Based on what I heard at the CS meeting the other year the retirement insurance costs at least for me was the real sticking points more than the actual monthly benefit reduction. I'd still like to see some membership heads get together and see what options we could come up with to lessen the blow of this cost or maybe even some type of group policies within the various locals as groups do get better rates than buying individual policies.

Tip of the hat to CS for sending this out and in the last couple of years I must admit their efforts to better inform have gotten better but that may have been seen as a need to after the backlash from the cuts. Either way I'm glad they have. Looking forward to comments and what you found in the guide!

 

[trickpony1]

It's my understanding that Hoffa is up for re-election in 2006.
What are the chances that he will pull a rabbit out of his hat and rescue the CS mess and then say "look what I did for you...re-elect me"?

 

[ok2bclever]

trick, I don't think the chances are good, but I'd be more than willing to accept any positive help or improvements in the pension situation regardless of the source.

wkmac,

Yes, the benefit reversion for those that take the heavy hit regarding the surviving spouse option is a positive, but that is not a change you realize, right?

We were long overdue for an makeover update of the Roadmap,etc that preceded this one in 2000 I believe.

 

[wkmac]

Yes, the benefit reversion for those that take the heavy hit regarding the surviving spouse option is a positive, but that is not a change you realize, right?

God I sure hope not but my wife and I have discussed whether to exercise that option or not and we already had other contengencies in place just in case we decide not to that the JSO option. Good to know more details on this part of our retirement even though it involves something you really don't want to even consider.

A co-worker of mine who is about the same age and same years service ran his numbers and although he has to work those extra years like I will, the monthly benefit isn't to bad. As I've said however, my big beef hasn't so much been with the monthly benefit amount as it has been what the cost of insurance would be along with the work restrictions. How can our insurance cost us so much more in retirement than it does while we work? I would expect some increase as older folks generally as a rule over time use more and more medical care but we're talking from the age of the mid 50's to the mid 60's and when you reach those mid 60's when you do start into an age where the costs can get pretty stiff, by law Medicare becomes the primary insurance coverage and the union insurance become secondary.

Several of us have been talking and I'm going to suggest to our local that we actually look into seperate insurance policies as a group (local)just to see what the cost would be verses using Central States.

As for Hoffa pulling a rabbit out of his hat? Funny, I got a mailer from Hoffa yesterday about his run in 2006'. I'd love to see the rabbit get pulled out "BUT" not a short term, smoke and mirrors kinda deal but a real, tangible longterm fix that makes the pension rock solid. I'm not sure there is one but at this point I don't care who does it as long as it gets done.

 

[susiedriver]

Survivor's benefits

FWIW, Most have found it better to take the whole pension and purchase a life insurance policy instead. Check in your situation, but I believe you'll be able to purchase a pretty good policy for less than the difference in the two benefits.

 

[ok2bclever]

Yep, unless you are a bad health risk the whole pension and a life insurance policy is far, far more economically the right move.

My concern isn't how much we are supposed to get, it's how much will we really get after all these unfunded liability issues settle where we are highly likely to get dumped on the government for a lousy $1050 a month and no medical, at best.

The retirement insurance issue should be a primary negotiating point in 2008 to get it restored to where UPS was maintaining it prior to being able to abandon us because of the equal to language in the contract.