That 4.4 might drop a little bit after they cut the retro checks and pay the back money to the pensions and health care.Where would this cash come from?
According to the 3/31 balance sheet on yahoo finance, UPS has $4.4 B in cash.
UPS has borrowed $10’s of billions to try to maintain around 80% funding on their pension plans.
Credit rating would plummet if they didn’t reduce long term debt at the same ratio they would reduce pension fund assets.
The only changes coming would have to be more “enhancements.”
Maybe they would consider the future reduction in benefits as savings?
It looks like the new buzz word amongst large Share Holders these days is "De-Risking" their companies from their pension responsibilities.
After reading several articles it looks like the playbook goes like this:
1. End Pension contributions.
2. Offer reduced buyouts
3. Take the remaining pension responsibility problem and transfer the funds to an annuity insurance company.
4. This company will distribute the monthly checks but is no longer insured. However the recipients can go after the company if the annuity goes under. But pensioners can’t go after the company if it has been sold or "transformed".
So maybe they will de-risk the pension and Transform the company from UPS to UBS.....
I'm fine with that!As long as the Teamsters get theirs, that's all that matters.
I'd like to think they'd finally change it to "United Parcel", but probably just end up as "Amazon Distribution Service".So maybe they will de-risk the pension and Transform the company from UPS to UBS.....
What goes around comes around. You all got a taste of your own medicine and it's bitter.The future looks bleak for "partners" in the longer term. We used to be able to compete by leveraging our partnership and by being a premium employer.We have "transformed" into an average at best employer and can no longer expect our future generation of talent to put up with our exceptionally out of touch expectations and leadership. Tough to find quality "partners" when the Unionized employees have far better benefits and protection.
Is that how buyouts generally work?There are a whole bunch of management folks in the 50-54.999999 years old range with 30+ years of service and pension credit. To "buyout" and cover the average monthly pension AND healthcare benefit a person would receive over the next 25 to 30 years of life, and figuring 4-5% interest over that time, UPS would have to pay each person like that something close to 1.5M net in today's dollars to truly "buyout". That ain't the way UPS operates.