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Brown Cafe UPS Forum
UPS Union Issues
Has the Teamsters sold you out?
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<blockquote data-quote="JonFrum" data-source="post: 265807"><p>Tie, UPS has little choice. They owe the $6.1 billion to the Central States Fund. Period. It's not a gift. It's a debt they legally owe. And they don't owe it to the UPS employees, they owe it to the Fund. It's not part of contract negotiations. If UPS chose to stay in Central States, then they would have to pay the $6.1 bilion in the form of higher monthly contribution rates. If UPS withdraws, they must pay in the form of Withdrawal Liability. Either way, they must pay. UPS doesn't just guarantee they will make hourly contributions on our behalf, they also guarantee that the money will be there in the fund to pay our retirement in the future, even if the fund looses a fortune in the stock market. One way or the other, UPS, and all the other employers, guarantee the payment of future benefits. That PBGC Insurance Plan we've spoken of is just a backup plan. The first-line insurance plan is the ERISA guarantee that currently contributing employers will pay higher rates, and that withdrawing employers will pay Withdrawal Liability. </p><p></p><p>It's like paying a mortgage. You owe the full amount; But you only pay a thousand dollars or so a month. However, if you try to sell the house or move, you must pay it all off in one lump sum. But either way, you owe the entire amount. The only escape is for the employer to declare bankruptcy. Even then the fund will have first claim on the company's remaining assets.</p></blockquote><p></p>
[QUOTE="JonFrum, post: 265807"] Tie, UPS has little choice. They owe the $6.1 billion to the Central States Fund. Period. It's not a gift. It's a debt they legally owe. And they don't owe it to the UPS employees, they owe it to the Fund. It's not part of contract negotiations. If UPS chose to stay in Central States, then they would have to pay the $6.1 bilion in the form of higher monthly contribution rates. If UPS withdraws, they must pay in the form of Withdrawal Liability. Either way, they must pay. UPS doesn't just guarantee they will make hourly contributions on our behalf, they also guarantee that the money will be there in the fund to pay our retirement in the future, even if the fund looses a fortune in the stock market. One way or the other, UPS, and all the other employers, guarantee the payment of future benefits. That PBGC Insurance Plan we've spoken of is just a backup plan. The first-line insurance plan is the ERISA guarantee that currently contributing employers will pay higher rates, and that withdrawing employers will pay Withdrawal Liability. It's like paying a mortgage. You owe the full amount; But you only pay a thousand dollars or so a month. However, if you try to sell the house or move, you must pay it all off in one lump sum. But either way, you owe the entire amount. The only escape is for the employer to declare bankruptcy. Even then the fund will have first claim on the company's remaining assets. [/QUOTE]
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