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<blockquote data-quote="JonFrum" data-source="post: 227864">Engineer79,You&#039;re right that every time a company goes out of business, the rest of the companies have to pick up their slack, but understand, they only have to pick up the small part that the defunct company still owed the pension fund.&nbsp; Most of the benefits earned by the employees of the bankrupt company would be paid out of the many years of contributions made by the company while it was still a going concern.&nbsp; Additional money would be recovered by the Fund in Bankruptcy Court. Only what isn&#039;t recovered must be funded by the other surviving companies in the Fund.This process is not unique to Central States, or multi-employer pension funds.&nbsp; In fact, it is the standard way of doing business, or going out of business, through out the country.&nbsp; The Bankruptcy Laws apply to all of us, both individuals and companies.&nbsp; Because UPS has financial dealings with a huge number of people and companies, they are probably left holding the bag more often than almost any other company in America.&nbsp; Yet I never hear you lament that UPS is itself unstable and headed for bankruptcy, just because so many of its accounts go belly-up and leave UPS to absorb the loss.I&#039;m not defending the nation&#039;s lax Bankruptcy Laws, just pointing out that they apply to all of us, not just Teamsters-sponsored pension plans. One way or another, we all pay every time someone checks-out without paying their bill.</blockquote>

[QUOTE="JonFrum, post: 227864"] Engineer79, You're right that every time a company goes out of business, the rest of the companies have to pick up their slack, but understand, they only have to pick up the small part that the defunct company still owed the pension fund. Most of the benefits earned by the employees of the bankrupt company would be paid out of the many years of contributions made by the company while it was still a going concern. Additional money would be recovered by the Fund in Bankruptcy Court. Only what isn't recovered must be funded by the other surviving companies in the Fund. This process is not unique to Central States, or multi-employer pension funds. In fact, it is the standard way of doing business, or going out of business, through out the country. The Bankruptcy Laws apply to all of us, both individuals and companies. Because UPS has financial dealings with a huge number of people and companies, they are probably left holding the bag more often than almost any other company in America. Yet I never hear you lament that UPS is itself unstable and headed for bankruptcy, just because so many of its accounts go belly-up and leave UPS to absorb the loss. I'm not defending the nation's lax Bankruptcy Laws, just pointing out that they apply to all of us, not just Teamsters-sponsored pension plans. One way or another, we all pay every time someone checks-out without paying their bill. [/QUOTE]

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