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Is Central States pension fund ready to go under?
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<blockquote data-quote="JonFrum" data-source="post: 181386"><p>Does everyone understand that if the APWA suceeds in replacing the Teamsters as our exclusive bargaining agent the following things will occure? . . .</p><p></p><p>Our active participation in the various Teamsters-sponsored pension plans will stop as UPS stops contributing money on our behalf. Each of us will have our benefits calculated as of that moment and we will be eligible to receive benefits according to the rules in effect at that time. If there is a five year vesting requirement, then anyone with less than five vested years will forfeit all monies contributed on their behalf. Anyone who is short of any other pension milestone will forfeit the right to a pension based on that milestone. If, in the New England fund, you are short of the ten year mark, which is required for a disability pension, or the fifteen year mark, which is required for an early retirement pension, or short of 25 or 30 years pension credit for a 25-and-out or a 30-and-out pension, or short of a certain age qualification, like 52 or 55 or 57 or 64 then you can't qualify for those particular benefits. It's just like when the various funds cut the benefits several years ago. If you had not achieved the milestone by the cutoff day, then you were not grandfathered in and had to settle for lesser benefits. Van Skillman was just short of 25 years when Central States moved the goal post on him, as was I when the New England fund did it to me. However since we are still working under those funds, we still continue to accrue pension credits, albeit at a lower rate. If the APWA causes UPS to withdraw from the funds, we will be cut off from all future pension credit accruals. The only exception would be a UPSer who goes out and gets another Teamster job with an employer who continues to make contributions to the old Teamsters-sponsored pension plan on his behalf. This would be very hard to do for a full-time UPSer.</p><p></p><p>You may have heard that single-employer funds have much better insurance than multi-employer funds. Suposedly, a single-employer fund such as the APWA would create for UPSers only, would have it's monthly benefits insured up to $4,125 per month should the plan fail. While a Teamsters-sponsored multi-employer plan only has insurance of $1,072 per month. The government requires the single-employer funds to be more heavily insured because they fail at a rate of 100 times that of multi-employer funds. They are totally dependant on one employer, and when it fails, the fund fails. That's why you are always cautioned: Don't put all your eggs in one basket. The multi-employer funds, in effect, have much of their "insurance" built in to them as a result of their diversified employer contribution base. I've explained this and more in another thread . . .</p><p><a href="http://www.browncafe.com/community/threads/ups-subsidizing-non-ups-pensions.27725/" target="_blank">http://www.browncafe.com/community/threads/ups-subsidizing-non-ups-pensions.27725/</a></p><p>But here I want to explain that the often-cited figure for single-employer plans only applies if you are 65 years of age! The coverage is significantly less if you are younger than 65, as almost all of us are. See this table of coverage to see how much less . . .</p><p><a href="http://www.pbgc.gov/workers-retirees/find-your-pension-plan/content/page789.html" target="_blank">Maximum monthly guarantee tables (PBGC.gov)</a></p><p>Note that the coverage is reduced even further if the Surviving Spouse option is taken.</p><p></p><p>The new APWA pension plan will not carry any PBGC insurance for the first five years, since no benefits will be paid for the first five years, (if I'm interpreting their sketchy pension plan description accurately.) These years will be the most turbulent as the APWA attempts to get its house in order and the Teamsters and Teamsters-sponsored funds retailate with campaigns and lawsuits.</p><p></p><p>UPS will also be hit with a huge bill from each of the pension plans that is less than 100% funded, to cover its Withdrawal Liability. UPS will regard these payments as no different in kind than it's normal payments that it has been making to the funds on our behalf all along. They will claim in negotiations that any new contributions the APWA expects them to make to a new APWA plan will be on top of the Withdrawal Liability contributions they are already legally required to make to the old Teamsters plans.</p></blockquote><p></p>
[QUOTE="JonFrum, post: 181386"] Does everyone understand that if the APWA suceeds in replacing the Teamsters as our exclusive bargaining agent the following things will occure? . . . Our active participation in the various Teamsters-sponsored pension plans will stop as UPS stops contributing money on our behalf. Each of us will have our benefits calculated as of that moment and we will be eligible to receive benefits according to the rules in effect at that time. If there is a five year vesting requirement, then anyone with less than five vested years will forfeit all monies contributed on their behalf. Anyone who is short of any other pension milestone will forfeit the right to a pension based on that milestone. If, in the New England fund, you are short of the ten year mark, which is required for a disability pension, or the fifteen year mark, which is required for an early retirement pension, or short of 25 or 30 years pension credit for a 25-and-out or a 30-and-out pension, or short of a certain age qualification, like 52 or 55 or 57 or 64 then you can't qualify for those particular benefits. It's just like when the various funds cut the benefits several years ago. If you had not achieved the milestone by the cutoff day, then you were not grandfathered in and had to settle for lesser benefits. Van Skillman was just short of 25 years when Central States moved the goal post on him, as was I when the New England fund did it to me. However since we are still working under those funds, we still continue to accrue pension credits, albeit at a lower rate. If the APWA causes UPS to withdraw from the funds, we will be cut off from all future pension credit accruals. The only exception would be a UPSer who goes out and gets another Teamster job with an employer who continues to make contributions to the old Teamsters-sponsored pension plan on his behalf. This would be very hard to do for a full-time UPSer. You may have heard that single-employer funds have much better insurance than multi-employer funds. Suposedly, a single-employer fund such as the APWA would create for UPSers only, would have it's monthly benefits insured up to $4,125 per month should the plan fail. While a Teamsters-sponsored multi-employer plan only has insurance of $1,072 per month. The government requires the single-employer funds to be more heavily insured because they fail at a rate of 100 times that of multi-employer funds. They are totally dependant on one employer, and when it fails, the fund fails. That's why you are always cautioned: Don't put all your eggs in one basket. The multi-employer funds, in effect, have much of their "insurance" built in to them as a result of their diversified employer contribution base. I've explained this and more in another thread . . . [url]http://www.browncafe.com/community/threads/ups-subsidizing-non-ups-pensions.27725/[/url] But here I want to explain that the often-cited figure for single-employer plans only applies if you are 65 years of age! The coverage is significantly less if you are younger than 65, as almost all of us are. See this table of coverage to see how much less . . . [URL='http://www.pbgc.gov/workers-retirees/find-your-pension-plan/content/page789.html']Maximum monthly guarantee tables (PBGC.gov)[/URL] Note that the coverage is reduced even further if the Surviving Spouse option is taken. The new APWA pension plan will not carry any PBGC insurance for the first five years, since no benefits will be paid for the first five years, (if I'm interpreting their sketchy pension plan description accurately.) These years will be the most turbulent as the APWA attempts to get its house in order and the Teamsters and Teamsters-sponsored funds retailate with campaigns and lawsuits. UPS will also be hit with a huge bill from each of the pension plans that is less than 100% funded, to cover its Withdrawal Liability. UPS will regard these payments as no different in kind than it's normal payments that it has been making to the funds on our behalf all along. They will claim in negotiations that any new contributions the APWA expects them to make to a new APWA plan will be on top of the Withdrawal Liability contributions they are already legally required to make to the old Teamsters plans. [/QUOTE]
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