Discussion in 'UPS Union Issues' started by UPSTeamster Pragmatist, Feb 23, 2019.
everybody watch: .
In case you are wondering how things are going to get fixed.
Guaranteed benefit pensions will never be fixed. They will continue fail or need to be bailed to survive. It is only a matter of time before UPS tells shareholders that it can no longer afford to contribute and they will go bankrupt unless they are relieved from their obligations. May not happen in the next year or 2 or 3, but it will happen. Just like everywhere else.
United Parcel Service Inc., Atlanta, expects to contribute $2 billion to its U.S. pension plans in 2019, the shipping company disclosed in a 10-K filing with the SEC on Thursday.
UPS contributed $19 million to the U.S. plans in 2018 and $7.3 billion in 2017. It also disclosed in the Securities and Exchange Commission filing that it expects to contribute $63 million to its international pension plans this year. The company contributed $80 million and $77 million, respectively, to those plans in 2018 and 2017.
As of Dec. 31, U.S. pension plan assets totaled $39.55 billion, while projected benefit obligations totaled $45.33 billion, for a funding ratio of 87.3%, down from 91.5% a year earlier. As of that same date, international plan assets totaled $1.28 billion, while projected benefit obligations totaled $1.55 billion, for a funding ratio of 82.7%, up from 80.7% a year earlier.
Perhaps if mangement from both concerns would take a "wage freeze" that would help with the shortfall. Does anyone in a public company really "need" to make Nine and One Half million dollars a year? Any person making six figures can take a pay cut. President Trump is only taking $1 a year. Then when the pension fund is caught up - they can "gradually" increase their pay to about $80,000.00 a year. They forget where their salaries are coming from - the employees who bust their humps and put up with multitudes of abuse about any and everything. If you can't live within your six figure income - then you are a poor money manager and your toys need to be taken away. Bill and Melinda Gates spread their wealth. Make the world a better place for all of us.
I think you are mixing your apples with your oranges?
While I completely agree with you assessment on corporate executive wages, I don't understand how you are connecting those dots with our pension woes??
When has UPS ever been deemed remiss in making their negotiated pension contributions???
6 Figures is rich in some parts, in others that barely covers the bills.
I would whole heartily agree if you move that number to 7 figures and above!
There is a monstrous difference between 19 million and 7.3 billion. I don't know the facts or reason behind the difference but........ DAMN!
Brother..I could tell you a story....
These figures are from contributions to UPS controlled single employer plans.
UPS uses available accounting methods to manipulate these contributions by various actuarial schemes such as inflating assumption rates. The "funding levels" then appear to be above the minimum 80% requirement.
Contributions to multi employer plans have obligatory contributions that have minor fluctuations (normally moving up) according to requirements of the controlling CBA's and number of covered employees.
I believe that at the end of 2017 UPS contributed way over the amount required to cover the the promised benefit amounts. It was over 5 billion, the difference could be that the interest collected from the pensions trusts reduced that annually contribution down to 19 million in 2018. They did state that they got a 14 percent interest rate on their pension plans in 2017.
The IBT/UPS Pension plan in the Central would be considered a UPS controlled defined pension plan, not a contributory monetary plan like for example the Western Conference's.
it's because UPS was committed to "bailing" out the plans with the 7 billion and control of the funds (CS)
The obesity epidemic catching up to the baby boomers will take a huge burden off of the pension fund. And some of the modern day millennials. gosh darn.
CS bailout was over 10 years ago, 2 contracts back.
Anyone know what other pension plans UPS has "bailed out," or bought out of?
PIOnline : Error Page
ty, that was an interesting read.
I shouldn't fault members.... for their ignorance.
But, they are allowed to vote on their contract.
Such an informed opinion.
In the video it says their plan was a 30 year loan. Interest only with a balloon payment at the end. But they never talked about how they would pay for that balloon payment.
UPS stopping contributions will happen sooner than later. They can't bail out the UNION much longer. I also have NO faith in Congress on both sides of the isle. The UNION spends our funds on continuing theft an unnecessary spending. Unfortunately w e are in the biggest ponzi scheme made.
The union has not been good stewards of our pension money. I do give some blame to the company also because they have people on the pension board also and everyone keeps kicking the can down the street.
The pension is going broke but at the same time they are raising the benefit by $400 a month next January. Where is my government bail out?
This pension stuff isn't going to end well . That's why I preach to the guys at work. Pay off your bills and save some money on your own