Pension Cuts

[moreluck]

Pension Cuts Hit New England

July 14, 2005. The Union Trustees on the New England Teamsters Pension Fund
have agreed to new pension restrictionsincluding eliminating 25-and-out and
30-and-out pensions before age 57.

The cuts are coming just as news of the funds strong financial performance
is hitting members homes. The Fund just mailed its summary annual report to
members this week, in which it reported that Fund assets grew by more than
$121.5 million in the last fiscal year.

Members who do not have 25 years of credit by July 31, 2005, will not be
eligible for 25- or 30-and-out until age 57. Members who do have 25 years of
credited service, but are under age 57, are protected and can get their earned
pension. But if they continue to work they will have their pension frozen until
that age. So a Teamster who is 53 and 27 years credit, with a pension accrued of
$2,300 per month, could work the next four years with zero pension
improvement. Then, at 57, the pension will snap back to the full rate.

Pension accrual rates are also frozen. New contracts will have to increase
pension contributions by 5% per year to maintain the present rate of accrual.

But the biggest cuts are in early retirement: the Trustees July 13
announcement states that the goal is to keep Teamsters working longer.

While most Teamsters dont retire before 57 and will be hurt very little,
many do retire early. Many are forced to because of company closures (including
the Red Star victims) or health factors. These Teamsters are going to take the
brunt of the cuts imposed.

Worst hit of all are those who fall short of 25 years. A Teamster with 24
years credit, at age 49, will not become eligible for any Special Service (25- or
30-year) pension for eight years, until age 57.

An announcement is expected to reach New England Teamsters any day with the
details of the cuts

 

[speeddemon]

WElcome to your own "Central States Screwed us party." And by the way. Count your blessings. We cant retire until age 62, or be heavily cut on our $$.

(Message edited by speed-demon on July 24, 2005)

 

[my2cents]

Thanks for the invite Speed. Its our opportunity to subsidize out of business trucking companies for the next few years. Hopefully, these measures will lead to an increased funding level. I don't know what the latest funding level is yet, as I don't have the data, although the previous level was 56%. The recently released Summary Annual Report shows a negative cash flow for the Fund, as it took in about $207 million in contributions and paid out about $360 million in benefits.

 

[trickpony1]

A reasonable person could easily assume that the pension fund would dearly love for us to drop dead just before we apply for our retirement.

Here's another concern:
As it stands now, if an employee gets fired for some chickens**t reason, he/she can go to another union driving job to make it to retirement. If UPS takes over the health, welfare and pension and an employee gets fired is he/she just out of luck as far as getting their pension? Think of the money the company could save under this scenario.
Something to think about.

 

[over9five]

Where would you find another union driving job? No one else is looking for people.

 

[trickpony1]

Some of our feeders drivers that were "terminated" by a "lynch mob" management team that has since retired are driving for, I believe, Yellow in a nearby state.
I understand this option may not be available to a terminated package driver.
It's my understanding the union can help place a feeder driver in another union barn.

 

[gman]

What really hurts me is I struggle with back problems and still won't be able to retire after thirty years (28 currently) because they won't let me work another less physically stressful job and collect my pension too. They claim they are going alowing more opportunity to work after you start collecting your retirement, but I haven't seen or heard any results of those changes. I'm only 51 and have no intention of sitting around or playing golf every day. I NEED to keep moving or I'l be HUGE in a couple months. Besides, I'd like to have a little more coming in so I can spend it on my grandchildren and on myself for vacations and toys! I have an 84 year old guy on my route who does the recieving at a store working 30 hours a week and I think he's in better shape than me. He says just don't quite moving. You have to have something to get you going every day. He doesn't need to work but he says it's what keeps him "young".

 

[feguy]

"Some of our feeders drivers that were "terminated" by a "lynch mob" management team that has since retired are driving for, I believe, Yellow in a nearby state."

Hmm, been around 25 years pretty soon. Every driver I have ever worked with that's been fired "terminated" themselves. That's a fact, Jack. Don't miss one of them.

 

[ok2bclever]

Contrary to the popular belief on this forum there are other Teamster union jobs out there.

They hire, fire and retire, just like us.

Depending on what you were fired for there are other Teamster employees that are interested in form er UPS employees, especially if your local is willing to recommend you.

Gman,

Although the job restrictions are too restrictive and and you can kiss away any job related to what Teamsters do such as driving, etc. and you must put any specific job through the approval procedure, there are tons of jobs that are not prohibited.

Good luck in finding one you like and can do.

 

[ok2bclever]

Drivers are terminated for accidents that no court of law would hold them accountable for, but UPS will.

Drivers are terminated for health issues beyond their control, UPS will terminate them as quickly as the contract will allow.

It's a business, not a charity, and being terminated does not necessarily signify wrongdoing.

Of course, being innocent of wrongdoing still doesn't pay the bills regardless of whether your co-workers miss you or not.

 

[gman]

The problem lies in a termination due to injury or illness caused by doing the job but in many cases it is a progressive injury/illness sustained over time and unless you can pin point an exact time and place, you could spend years fighting the company to prove it. And even if you win, you end up losing a third to legal fees.

If anyone can ever prove degenerative disks are caused by the repeated lifting/carrying/junping in and out of vehicle, UPS would be bankrupt becuase right now, they won't pay a dime.

 

[trickpony1]

Two-thirds of something and an admission by the company is better than nothing.

 

[crappie]

G-man walk every day at least 15 minutes 30 is better, good medicine for the back.

 

[wkmac]

As a victim of Central States I'd like to dedicate the Jim Reeves song, "Welcome to My World" to the members of the New England Pension Fund.

 

[my2cents]

Posted below is the funding data from the recently released 2003 Form 5500 for the New England Fund (plan year: 10/01/03 - 09/30/04). More specifically, peforming the calculations used in Trucking: Structure of Less-Than-Truckload (LTL) Industry and Pension, Safety, and Security Issues, Congressional Research Service Report RL32257, April 19, 2004.

Assets and Liabilities of the New England Fund (2003)

Here is the Form 5500 data used to perform the above calculations. Absent a current acturarial valuation report, these calculations are unofficial, but are posted for informational purposes.

http://www.nettipf.com/pdf_files/SAR2003.pdf

 

[my2cents]

One minor error in my previous post. Please disregard the word (millions) in the last table. The figures provided are whole numbers and are not rounded. In short, those are billion dollar numbers.

 

[my2cents]

TDU has updated the original post on this thread with this press release: New England Teamsters Hit with Pension Cuts

The New England Fund has also updated its benefit tables for full-time and part-time employees. UPSers meet the criteria for these tables with the corresponding contribution rates from the New England Supplement. Going forward, the freeze is reflected in the Minimum 5 Year Average Rate, set to take effect on August 1st.

 

[my2cents]

An article of interest for participants in the New England Fund appears today in the New Hampshire Union Leader titled New England Teamsters face pension changes.

To those who wish to obtain a copy of the full annual report from the plan itself, ones ERISA rights are outlined in 29 U.S.C. 1024(b) and 1132(c). One can also order a copy of the latest Form 5500 filing from the Employee Benefits Security Administration.

 

[my2cents]

The New England Fund recently posted a fact-filled presentation on their website. One can download a copy by visiting the site and clicking on the "Slide Show," which is a 45 page Acrobat document. The presentation provides a great overview of the current demographic situation. No misrepresentations, half-truths or spin. Just solid facts and goals, which is greatly appreciated. One highlighted fact from page 12 of the presentation: "70% of current retirees last worked for an employer who no longer is making contributions to the Fund." IMO, a must read for New England Fund participants, given its stated goal to be 90% funded by the year 2030.

 

[over9five]

"...goal to be 90% funded by the year 2030."

And we'll be seeing a lot more of the scalpel to get there:

45 years and out...

Collect after age 85...