Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Union Issues
IBT proposal thus far.
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="beentheredonethat" data-source="post: 1100224" data-attributes="member: 4886"><p>The difference really between a pension fund for a group, and an individual retirement savings account is that any one person can live a short amount of time, or live a long amount of time. The pension fund for a group allows actuaries to know with a very large degree of certainty, how long the average person will live and how much they need to pay for his\her pension checks. They have no clue which person will die and who, but they know how many will and when. With this, and knowing how much is promised, they can determine what they need for payment per year into the plan and return on investment. Or.. conversely know what the payment is and planned rate of return and know what they can give out for a pension check. </p><p></p><p>When a company stops contributing, because they go out of business, then that employee no longer earns years of vesting credit. Similar to if they just quit the company. This should have no impact at all to the fund, since no additional liabilities are added to the fund. YOU are describing a ponzi scheme and explaining the problem is that there aren't enough new people to pay the older people. That may be how the govt handles the pension fund and also how the teamsters handle a pension fund. But that's not how a well run pension fund should be run. PONZI... check out the defintion, since that's what you are desribing. </p><p></p><p>Again, the amount OWED, was due to laws passed that hurt the well run surviving companies. UPS wanted to get out of having more liabilties thru no fault of their own, so they paid money now so they wouldn't have to pay more later. IMO, this is a ridiculous law. But it is the law and we have to live with it.</p></blockquote><p></p>
[QUOTE="beentheredonethat, post: 1100224, member: 4886"] The difference really between a pension fund for a group, and an individual retirement savings account is that any one person can live a short amount of time, or live a long amount of time. The pension fund for a group allows actuaries to know with a very large degree of certainty, how long the average person will live and how much they need to pay for his\her pension checks. They have no clue which person will die and who, but they know how many will and when. With this, and knowing how much is promised, they can determine what they need for payment per year into the plan and return on investment. Or.. conversely know what the payment is and planned rate of return and know what they can give out for a pension check. When a company stops contributing, because they go out of business, then that employee no longer earns years of vesting credit. Similar to if they just quit the company. This should have no impact at all to the fund, since no additional liabilities are added to the fund. YOU are describing a ponzi scheme and explaining the problem is that there aren't enough new people to pay the older people. That may be how the govt handles the pension fund and also how the teamsters handle a pension fund. But that's not how a well run pension fund should be run. PONZI... check out the defintion, since that's what you are desribing. Again, the amount OWED, was due to laws passed that hurt the well run surviving companies. UPS wanted to get out of having more liabilties thru no fault of their own, so they paid money now so they wouldn't have to pay more later. IMO, this is a ridiculous law. But it is the law and we have to live with it. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Union Issues
IBT proposal thus far.
Top