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nospinzone
Guest
Just wanted to share some information that was made aware to me on this board, and that I have found interesting in light of this new APWA organization and what they are offering. The APWA is promising $7,000 a month when IBT/CS can only offer $3600 and you ask "How?" Dont take my word for it or Sawmans. Here is the proof in black and white.
These are excerpts taken from the US House Subcommittees March 18, 2004 hearing on "Reforming and Strengthening Defined Benefit Plans: Examining the Health of the Multiemployer Pension System The full transcript can be downloaded from the House subcommittee's home page
WHAT UPS IS PAYING IN:
For our employees in multiemployer pension plans, UPS pays into the plan an average of $8,000 a year for each employee.*
WHAT YOU SHOULD BE RECEIVING UPON RETIREMENT
Those contributions should accumulate to permit an employee to have a nest egg of $827,000 after 30 years, assuming a conservative 7.5 percent rate of return. If these funds were placed in a simple interest bearing account rather than in a multiemployer plan such as Central States, this would produce $70,000 annually for that employee over the next 30 years of retirement. *
BUT WHAT IBT/CS IS RETURNING
But that is not today's reality. The Central States benefit would only provide such a driver about $36,000 a year*
IS THE BLAME FOR IBT/CS FAILURE TO BE PLACED ON WALL SREET?
It is important to understand that the underlying problems are not simply caused by swings in the stock markets which could be cured by waiting out the downturn. Central States, for example, pays approximately $1 billion annually to about 100,000 retirees who no longer have a contributing employer because those companies are out of business. These factors were in place before the market downturn. And a reversal of Wall Street will not solve the underlying problem.*
WHAT CAN YOU NEW EMPLOYEES EXPECT FROM YOUR IBT PENSION INVESTMENT?
Three examples:
Today, a 50 year old UPS driver who will retire in six years after thirty years of service will lose $3,216 annually from the $36,000 he was planning on as a Central States retirement benefit. The second example is a 31 year old driver who also plans to retire after thirty years of service; this driver will lose $17,000 annually. And our third employee is a 21 year old driver hired today. This new driver will have to work 42 years in order to get to today's benefit levels; again not even half of what a simple interest bearing account would have generated.*
AND WHAT IS THE FUNDAMENTAL FLAW IN IBT/CS MULTIEMPLOYER PLAN?
In 2003, UPS had over 41,000 active employees in the plan and only 6,300 retirees, a stark contrast to the non-UPS portion of the plan (136,000 actives and 195,000 retirees). In 2003, UPS contributed $350 million to the Central States Pension Fund while the fund paid only $161 million in benefits to retired UPSers.** }
These are not my thoughts or estimates on pension returns. I am merely assisting in the dessimination of public information regarding the state of UPS hourly employee pensions. However, it is my opinion that an organization composed of ONLY UPS hourly employees such as the APWA would directly address the fundamental flaw in a IBT/CS pension, and would in turn ensure that UPS contributions would be disbursed to ONLY UPS hourly employees.
Nospin
*excerpts found on page30-32 of report
**excerpt found on page60-61 of report
These are excerpts taken from the US House Subcommittees March 18, 2004 hearing on "Reforming and Strengthening Defined Benefit Plans: Examining the Health of the Multiemployer Pension System The full transcript can be downloaded from the House subcommittee's home page
WHAT UPS IS PAYING IN:
For our employees in multiemployer pension plans, UPS pays into the plan an average of $8,000 a year for each employee.*
WHAT YOU SHOULD BE RECEIVING UPON RETIREMENT
Those contributions should accumulate to permit an employee to have a nest egg of $827,000 after 30 years, assuming a conservative 7.5 percent rate of return. If these funds were placed in a simple interest bearing account rather than in a multiemployer plan such as Central States, this would produce $70,000 annually for that employee over the next 30 years of retirement. *
BUT WHAT IBT/CS IS RETURNING
But that is not today's reality. The Central States benefit would only provide such a driver about $36,000 a year*
IS THE BLAME FOR IBT/CS FAILURE TO BE PLACED ON WALL SREET?
It is important to understand that the underlying problems are not simply caused by swings in the stock markets which could be cured by waiting out the downturn. Central States, for example, pays approximately $1 billion annually to about 100,000 retirees who no longer have a contributing employer because those companies are out of business. These factors were in place before the market downturn. And a reversal of Wall Street will not solve the underlying problem.*
WHAT CAN YOU NEW EMPLOYEES EXPECT FROM YOUR IBT PENSION INVESTMENT?
Three examples:
Today, a 50 year old UPS driver who will retire in six years after thirty years of service will lose $3,216 annually from the $36,000 he was planning on as a Central States retirement benefit. The second example is a 31 year old driver who also plans to retire after thirty years of service; this driver will lose $17,000 annually. And our third employee is a 21 year old driver hired today. This new driver will have to work 42 years in order to get to today's benefit levels; again not even half of what a simple interest bearing account would have generated.*
AND WHAT IS THE FUNDAMENTAL FLAW IN IBT/CS MULTIEMPLOYER PLAN?
In 2003, UPS had over 41,000 active employees in the plan and only 6,300 retirees, a stark contrast to the non-UPS portion of the plan (136,000 actives and 195,000 retirees). In 2003, UPS contributed $350 million to the Central States Pension Fund while the fund paid only $161 million in benefits to retired UPSers.** }
These are not my thoughts or estimates on pension returns. I am merely assisting in the dessimination of public information regarding the state of UPS hourly employee pensions. However, it is my opinion that an organization composed of ONLY UPS hourly employees such as the APWA would directly address the fundamental flaw in a IBT/CS pension, and would in turn ensure that UPS contributions would be disbursed to ONLY UPS hourly employees.
Nospin
*excerpts found on page30-32 of report
**excerpt found on page60-61 of report
after we saved their ass?
