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Contract deal soon?
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<blockquote data-quote="JonFrum" data-source="post: 205591"><p>Karl Childers: "Some folks call it a sling blade, I call it a kaiser blade."</p><p><a href="http://www.imdb.com/title/tt0117666/" target="_blank">http://www.imdb.com/title/tt0117666/</a></p><p>That movie should be mandatory viewing in all the schools, and for everyone else as well!</p><p> - - - - -</p><p>705Red,</p><p>Every company that stops contributing to a multi-employer pension fund is legally obligated to pay its Withdrawal Liability to the fund to cover the unfunded, vested benefits of its own employees. If, say, Central States is 63% funded, then UPS owes the other 37%, and the bill comes due as soon as Central States realizes UPS is no longer making its regular monthly contributions. The exact amount of the Withdrawal Liability is slightly debatable, because there are several ways to calculate it, but the fact that the bill is owed is *not* debatable. Withdrawal Liability is a basic feature of ERISA and is also spelled out in every plan's trust document. </p><p></p><p>The $4 billion or so Withdrawal Liability is a debt UPS owes to the Central States Trust Fund; not a gift, or a sign of good-faith negotiating. These pension funds are called "Defined Benefit" funds because companies like UPS guarantee the published benefit levels, even if they, being represented by *all* the employer-side trustees, allow the fund to be underfunded. It's like having a mortgage on a house you own. You may have the house only partially paid for, but you do owe the rest, and the rest will come due if you try to move. </p><p></p><p>Since the Western Conference fund is fully funded, UPS, and all the other employers in that fund, may leave at any time and do not owe any Withdrawal Liability. UPS does owe Withdrawal Liability to every other multi-employer pension funds it is in, that is less than 100% funded. TANSTAAFL!</p></blockquote><p></p>
[QUOTE="JonFrum, post: 205591"] Karl Childers: "Some folks call it a sling blade, I call it a kaiser blade." [url]http://www.imdb.com/title/tt0117666/[/url] That movie should be mandatory viewing in all the schools, and for everyone else as well! - - - - - 705Red, Every company that stops contributing to a multi-employer pension fund is legally obligated to pay its Withdrawal Liability to the fund to cover the unfunded, vested benefits of its own employees. If, say, Central States is 63% funded, then UPS owes the other 37%, and the bill comes due as soon as Central States realizes UPS is no longer making its regular monthly contributions. The exact amount of the Withdrawal Liability is slightly debatable, because there are several ways to calculate it, but the fact that the bill is owed is *not* debatable. Withdrawal Liability is a basic feature of ERISA and is also spelled out in every plan's trust document. The $4 billion or so Withdrawal Liability is a debt UPS owes to the Central States Trust Fund; not a gift, or a sign of good-faith negotiating. These pension funds are called "Defined Benefit" funds because companies like UPS guarantee the published benefit levels, even if they, being represented by *all* the employer-side trustees, allow the fund to be underfunded. It's like having a mortgage on a house you own. You may have the house only partially paid for, but you do owe the rest, and the rest will come due if you try to move. Since the Western Conference fund is fully funded, UPS, and all the other employers in that fund, may leave at any time and do not owe any Withdrawal Liability. UPS does owe Withdrawal Liability to every other multi-employer pension funds it is in, that is less than 100% funded. TANSTAAFL! [/QUOTE]
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