Pension security

Kidlogic

Well-Known Member
What would happen to our pension if UPS suddenly went out of business in New England? Is our pension still guaranteed because of pension insurance?
 

Kidlogic

Well-Known Member
I am 5 years from retirement and would like to know what is the worse case scenario I could face when I reach retirement. I would breath easier knowing that no matter what happens that my pension is going to be there for me in the end.
 
I am 5 years from retirement and would like to know what is the worse case scenario I could face when I reach retirement. I would breath easier knowing that no matter what happens that my pension is going to be there for me in the end.
You would get a fraction of what you are supposed to get.

That's why you.got.to.take.a little responsibly on your own
 

Kidlogic

Well-Known Member
2 things.

1. Your pension is a multi employer pension.

2. Federal Pension Insurance Protections | Pension Rights Center
You would get a fraction of what you are supposed to get.

That's why you.got.to.take.a little responsibly on your own
I have 401k and other investments. I was told by another driver that since our pension was insured that if something did happen to UPS it wouldn't matter. I found that hard to believe. I would like to know what that fraction is.
 

Mugarolla

Light 'em up!
I have 401k and other investments. I was told by another driver that since our pension was insured that if something did happen to UPS it wouldn't matter. I found that hard to believe. I would like to know what that fraction is.

That depends.

Are you in the UPS Pension Plan, or a multi-employer plan?

If you are in a multi-employer plan and UPS goes out of business, you still receive your full pension until the fund cuts them because they can no longer be sustained.

If that fund goes bankrupt, then the PBGC kicks in. This is the agency that insures pensions.

For a multi-enployer plan, the limit is around $1100/mo. Yes, a third to a quarter of what you should get, but that is the limit, sorry.

If you are in the UPS Plan, well, right now it is around 100% funded, meaning there is enough money in it to pay all the current pension obligations. So you are good.

Even if the pension fund did run out of money, the PBGC kicks in, and for a single employer pension, they guarantee over $5000 at age 65.

Even if you retired earlier, they pretty much guarantee more than the amount that your pension entitles you to, so again, you are fine.


.....until the PBGC runs out of money,,,,,
 

Kidlogic

Well-Known Member
That depends.

Are you in the UPS Pension Plan, or a multi-employer plan?

If you are in a multi-employer plan and UPS goes out of business, you still receive your full pension until the fund cuts them because they can no longer be sustained.

If that fund goes bankrupt, then the PBGC kicks in. This is the agency that insures pensions.

For a multi-enployer plan, the limit is around $1100/mo. Yes, a third to a quarter of what you should get, but that is the limit, sorry.

If you are in the UPS Plan, well, right now it is around 100% funded, meaning there is enough money in it to pay all the current pension obligations. So you are good.

Even if the pension fund did run out of money, the PBGC kicks in, and for a single employer pension, they guarantee over $5000 at age 65.

Even if you retired earlier, they pretty much guarantee more than the amount that your pension entitles you to, so again, you are fine.


.....until the PBGC runs out of money,,,,,
 

Mugarolla

Light 'em up!
You're a multi employer pension fund is what it looks like to me.

New England Teamsters & Tr:censored2: Industry Pension Fund – NETTIPF

I don't know.

It looks like they withdrew from the multi-employer pension and then entered a single employer pension, within NETTI.

New England Supplement

Article 69

5. The Union and UPS acknowledge and agree that UPS shall cease to have an obligation to contribute to and completely withdraw from the NETTI as of September 16, 2012 at 11:59:00 and as set forth in the Withdrawal Agreement, and shall reenter the NETTI and have a new obligation to contribute to the NETTI as of September 17, 2012 as set forth herein and in accordance with the Reentry Agreement.
 

542thruNthru

Well-Known Member
I don't know.

It looks like they withdrew from the multi-employer pension and then entered a single employer pension, within NETTI.

New England Supplement

Article 69

5. The Union and UPS acknowledge and agree that UPS shall cease to have an obligation to contribute to and completely withdraw from the NETTI as of September 16, 2012 at 11:59:00 and as set forth in the Withdrawal Agreement, and shall reenter the NETTI and have a new obligation to contribute to the NETTI as of September 17, 2012 as set forth herein and in accordance with the Reentry Agreement.

Sounds like he should call his local or NETTI and get some answers.
 

Mugarolla

Light 'em up!
Critical and declining
Might want to keep working
https://www.nettipf.com/pdf_files/criticalnotice2019.pdf

The New England Fund is almost unique in that over 70% of the employer contributions go into the new “hybrid” fund. Employers can agree to pay-off their withdrawal liability over a long period to leave the fund, then re-join the new “hybrid” (also called the “new liability pool”) fund, typically at a lower contribution rate. The hybrid fund is fully funded. UPS and many other employers have taken advantage of this option. The fund is seeking to have more employers move into the new hybrid fund, to securely stabilize the fund.
 
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