METRO-PHILA PENSION & BENEFITS

[ddomino]

Someone posted a question about this but it must have been one lost Sat am.

The first statements I will make will all refer to a leaflet I have titled UPS Health and Welfare Package for Retired Employees. It has page numbers 101, 102, 103 on it. It also has the UPS shield on it. The old logo.

This plan offers medical options. They are PCP, or PPN, and in non-network areas the traditional program. Max lifetime $500,000.00. In addition dental and vision is covered. Eligibility: Any age 30 years of service, age 50 w/ 25 years, age 55 w/ 20 years. It talks about dependants and life events. When coverage begins: date of retirement or when active plan ends.Spouse begins with you as long as eligible and under 65. When coverage ends: When you reach 65. Spouse ends at 65, (s)he becomes eligible for medicare, or no longer a dependant. Then lists Member Services Directory with phone numbers of all providers. There is no cost listed but I am told it cost $50.00 per month. Life and ADD ins and legal and spending accts are extra but also available.

The next leaflett I will refer to is Titled Teamsters Pension Trust Fund of Phila &amp; Vicinity. Its dated 12/15/02 and say Local 384 Meeting. First lists vesting, then benefit service. Then NORMAL RETIREMENT (or retirement w/out reduction in accrued benefit) #1 age 65 <10>20 #2 w/ at least 20 benefit years-no reduction if worked after 50. #3 Any age w/ 30 vested-no reduction. #4 any age w/ 25 benefit-no reduction. Vested service = <750 hours in a year. 10 years needed to be vested, or after 1/1/99 only 5 needed to be vested. Benefit service = <1800 hours. Fractional year earned if more than 750 hours.

The next leaflett has no title or markings but was copied w/ above form and was also posted on union board w/ above . I will list first the 1st full year in plan then the benefit at 25 then 30
year w/ 25 w/30

1973 not listed $3016
80 $3350 $4594
85 $4771 $6058
88 $5608 $6895
92 $6469 $7756
98 $7531 not listed
00 $7804 not listed

It also says important assumptions apply
collective bargaining increasees in rates
2002 .40 hourly(h) 3.20 daily(d) 40.20 new daily rate(ndr)
2003 .35h 2.80d 43.00ndr
2004 .35h 2.80d 45.80ndr
2005 .35h 2.80d 48.60ndr
2006 .35h 2.80d 51.40ndr
2007 .45h 3.60d 55.00ndr
These are all multipiers that I believe get you to the numbers above. The multiplier has been reduced for 05,06,07,&amp;08 due to bad returns. This does mean these numbers are high, but it will give you the idea where we stand in metro-Phila.

I hope this is not to much info and your eyes start to glaze over.

 

[my2cents]

The funding level for the Philly plan does not appear to be that good. It had a funding ratio of 53% in their 2003 5500 filing and a 48% funding level in their 2002 filing. You can find the Philly 5500 filings on free ERISA, if you choose to register for the site. Better still, write the DOL or your fund for a copy of the latest full annual report. The full reports have attached financial and sometimes actuary data, which often gives a better overview of where the plan itself stands. IMO, obtaining a copy of these reports is worth the time and trouble. I have learned many things, which are never included with the Summary Annual Report. In short, the full annual reports are good for spotting potential or actual red flags.

 

[ddomino]

The type of pension is defined benfit. That means the payout is a set amount. Any earned payment cannot be reduced, unless the fund goes under. Future multipliers can be reduced, as has happened in the Phila fund. In my numbers below, somone who retired in 05 would gat $3350. Someone who will be retiring in 2010 should get $4771 but that will be lower due to the reduction in the multiplier. Multi-employer pension funds are defined benefit, whereas single employer funds are defined contribution.

 

[my2cents]

Just my opinion, but I would seriously take a closer look at your pension. On it's funding ratio alone, it's right on par with Central States and the New England Fund. The latter I'm a participant in.

 

[ok2bclever]

I believe the last figure for Central States was 61% funded and if so it would mean it is in better shape than Philly's fund.

It is incredbly frustrating attempting to get simple, up to date information on the actual state of the fund, ie: the funding percentage for instance.

You can find various sources that talk in approximate figures in regards to two or more years ago, but try getting an exact figure regarding the funding percentage level for 2004, let alone how it's going in 2005 and you can get lost in the empty repetitive blatherings that really don't use any exact figures.

The CSPF website was legally forced to make some financial documentation available at their site, but I will be damned if I can figure out how to use what they make available to figure out the funding percent.

 

[my2cents]

I hear you ok2bc on obtaining information from the fund itself. After the Section 204(h)Notice, which the New England Fund sent out last July, I have been unable to obtain the latest full financial report from them, even though the information in it is now over a year old. Unfortunately, I believe they are stalling by playing dumb and hope participants stop asking questions and simply go away.

In regards to the Cental States quarterly statements, I haven't spent much time studying them, although I believe the primary emphasis of these reports is mostly on market performance. Unless you see figures relating to "net assets available for benefits" and for liabilities, a figure relating to "termination benefits," you won't be able to calculate a funding ratio from the information given.

Sans an actuary report giving a funding ratio, one can calculate this figure from Form 5500. I performed this calculation for the upstate New York fund a few weeks ago.

One last item of note. If the Pension Protection Act is passed into law this year, the Philly Fund will clearly be in the red zone.

 

[mr_roboto]

this is somewhat ot but I'd like to know how time away from work due to a Worker's comp injury effects total time accrued towards pension.

We recently had a Driver retire with 35 years service. He had missed about 13 months total over the years due to work comp injuries. When he did not receive credit for the full 35 years he hired a lawyer but I never heard how it turned out.

 

[ok2bclever]

This is another area that depends on the language of your Supplemental and State laws.

In the Michigan Supplemental the company has to make contributions for up to one year for on the job injuries and four weeks for off the job injuries.