Pensions cuts

[rod]

every year you work over 30 you earn 100 dollars a month over the 4k with a max of 4500 a month. at least that is the new england pension.

Gee- $100 more a month. Thats' roughly $25 bucks a week-------before taxes. Probably closer to $17 or $18 after taxes. You guys that want to- keep on working. I prefer to kick back anf relax rather than worry about $17 bucks a week.

 

[JonFrum]

TDU has just updated its benefit comparison chart of all the Teamster pension plans UPSers are in. Once again the new UPS plan for Central Staters pays the lowest benefits, lower even than the old Central States plan.

Article:
http://www.tdu.org/pensiondivide

Benefit Comparison Chart:
https://web.archive.org/web/20131108074100/http://www.tdu.org/node/4031

 

[browned out]

I received the information packet on the proposed changes yesterday. There is a grandfather clause--if you have 25 years or more of service on 1/1/2011 your pension benefit will not be affected as much as those with less than 25 years. This is a multi-employer pension plan. There are 5 different Alternative Schedules presented with minimum retirement ages ranging from 55 to 65; unfortunately, the mailing did not link employer and schedule so I don't know which one applies to us. They will be holding informational sessions on these proposed changes locally before the end of the year as these changes are set to take effect 1/1/2011. Rumor has it that our minimum retirement age will either be 55 or 57.

With the increased stops due to PAS equaling almost 6 days of stops done in 5 days; many drivers will not make it til 57 much less 62. We are getting on and off the truck more and with less time between stops than ever before. We need to keep the 25 and 30 and out and increase these amounts in the central states.

 

[UpstateNYUPSer(Ret)]

With the increased stops due to PAS equaling almost 6 days of stops done in 5 days; many drivers will not make it til 57 much less 62. We are getting on and off the truck more and with less time between stops than ever before. We need to keep the 25 and 30 and out and increase these amounts in the central states.

That is a nice thought but the reality is the days of 25 and out may be numbered. 30 and out will still be an option but with a minimum retirement age. The math is basic---more money going out than is coming in.

This should serve as a wake up call for those people who think that the pension will be their sole source of retirement income.

 

[UpstateNYUPSer(Ret)]

We had our informational meeting today. Two representatives from the Pension fund gave a PowerPoint presentation which was very effective in translating the legalease. We were presented with a default schedule and 5 alternate schedules and were then asked to vote. Alternate schedule E, which sets a minimum retirement age of 55 with 30 years of service, received the most votes. These votes will be added to those locals who have already voted and the winning schedule will be adopted by the Pension fund.

There will be a grandfather clause for those with 25 years of service as of 1/1/2011 to minimize the impact to their pensions.

So-called ancillary benefits not essential to the pension have been cut. These include our disability benefit, 25 and out, 15 and out at age 60, and Supplemental Social Security benefit.

This schedule has an aggressive contribution increase of 11.5% for 3 years. This will be paid by the contribution from UPS and from the members through the forfeiture of one of our split pay raises each year which will save the company as it will not have to include that payraise when paying us both straight and OT hours.

These changes take affect 1/1/2011.

 

[JonFrum]

Upstate, how much in wages was diverted to the Pension Fund? Was it 37.5 cents + 42.5 cents + 47.5 cents, (which totals to $1.275)? Or was it more?

Was the vote held in person at the Union Hall? I ask because if it was, I'm quessing mostly older members showed up, so a lot of younger people, especially most part-timers will be suprised they are paying for this as well, even though the problem isn't their fault, and the "fix" may not benefit most of them. [I'm assuming part-timers are in your NYS fund along with full-timers.]

If you have any non-member Agency Fee Payors in your ranks, I assume they can't vote, but still must forfeit the pay raises.

Does UPS only have to contribute to the Pension Fund on your behalf for the first 40 paid hours per week? If so, I'm wondering what happens to your diverted raises for work beyond the forty hours per week. Shouldn't the raises stay in your paycheck for hours 41 and beyond, and be calculated at the overtime rate? Seems weird, but seems logical.

The rest of us may face such a vote soon enough so I'd like to know how it works beforehand.

 

[UpstateNYUPSer(Ret)]

Jon, I will try my best to answer your questions as best I can.

Yes, it was mostly the older members who went to the meeting and voted. We also had the option to vote by phone, which 26 of our drivers did on Friday. Our votes will be added to the votes of the other locals within the NYS Teamster Pension Fund umbrella to see which schedule will be adopted.

Right now UPS pays $8.565 per hour toward our pension. In 2010 this will be increased by $.0428, which is a 5% increase. There will be 11.5% increases in 2011-2013, which will range from $1.034 in 2011, $1.153 in 2012 and $1.286 in 2013. Our wage increases for those years have already been negotiated and, unless the company decides to give us a raise on top of our raise, the increase in the pension contribution will be achieved by UPS transferring our pay raise to the union to be directed to the pension, which is allowed under the NMA (I don't have the article to quote).

UPS only contributes for the first 40 hours so I don't know what will happen for our OT hours. The way that I understood it from the meeting is that one of the split raises will be forfeited in its entirety.

Keep in mind that this does not affect our health care as that is separate.

I will tell you that there was a lot of animosity toward UPS and our pension, which currently is about $5,200 per month. This pension is a multi-employer pension with over 200 employers represented and ours is by far the highest pension and UPS is by far the largest contributor (60%) to the fund. YRCW is the second largest and if they go out of business it would have a serious effect.

There was also talk of reducing the pensions being paid to current retirees. Not only is this unfair but it is illegal. This is where the problem lies as we have some retirees making over $6K per month in retirement who would have been lucky to make $5K per month while working.

Jon, do me a favor and Google "Casey Bill". This is a bill being written by Sen. Casey regarding pensions of failed companies. In it he seeks to lessen the impact on the remaining fund employers and members of a failed company by partioning the members of the failed company and having the govt assume their pensions.

You are right in the PTers are in for a wake-up call. There were no PT members at the meeting.

 

[Raw]

Gee- $100 more a month. Thats' roughly $25 bucks a week-------before taxes. Probably closer to $17 or $18 after taxes. You guys that want to- keep on working. I prefer to kick back anf relax rather than worry about $17 bucks a week.

Each year you work instead of retiring your making normal pay with OT available and raises every year, way more than a pension........

 

[UpstateNYUPSer(Ret)]

Each year you work instead of retiring your making normal pay with OT available and raises every year, way more than a pension........

Our pension here averages $5,200 per month so at least here your theory would not work.

 

[Richard Harrow]

I'm still at $3700 for 30 and out. I'll take $3700 at age 51 and go work in a 7-11 somewhere. I'm not working for UPS a day past 9-5-2033. LOL.

 

[badpal]

I'm still at $3700 for 30 and out. I'll take $3700 at age 51 and go work in a 7-11 somewhere. I'm not working for UPS a day past 9-5-2033. LOL.

Well enjoy it while you can time goes so fast . I just trying to imagine what UPS and the world will be like in 2033 . Enjoy the ride .

 

[JonFrum]

Thanks for the info Upstate.

The three annual split raises are each paid in two installments (February 1 and August 1.) I assume only one of each pair of raises is diverted into the pension fund.

What happens to the three diverted raises after this current Contract expires? Are the raises considered permanently diverted, or will they revert back into the wage base and into your paychecks? Pension funds usually have a rule that once you increase hourly contributions, you can't reduce them in the future.

If your current contribution rate (before the diversions) is $8.565 per hour, you are putting in $2.00 more per hour than those of us here in the long-suffering New England Fund!!! This may in part be why your monthly pension checks are so high. More money going in now allows for more money paid out later, even if the stock market goes down. The IAM follows the same philosophy with the UPS mechanic's pension fund.

The New England Fund hasn't asked us to divert any raises yet. They just cut and cut and move the goalpost further away every time we approach it. The 2009 Annual Financial Report was just posted here . . .
http://www.nettipf.com/plandocs.htm

 

[UpstateNYUPSer(Ret)]

Thanks for the info Upstate.

The three annual split raises are each paid in two installments (February 1 and August 1.) I assume only one of each pair of raises is diverted into the pension fund.

What happens to the three diverted raises after this current Contract expires? Are the raises considered permanently diverted, or will they revert back into the wage base and into your paychecks? Pension funds usually have a rule that once you increase hourly contributions, you can't reduce them in the future.

If your current contribution rate (before the diversions) is $8.565 per hour, you are putting in $2.00 more per hour than those of us here in the long-suffering New England Fund!!! This may in part be why your monthly pension checks are so high. More money going in now allows for more money paid out later, even if the stock market goes down. The IAM follows the same philosophy with the UPS mechanic's pension fund.

The New England Fund hasn't asked us to divert any raises yet. They just cut and cut and move the goalpost further away every time we approach it. The 2009 Annual Financial Report was just posted here . . .
http://www.nettipf.com/plandocs.htm

Jon, the way it was explained to us is that we would lose one of our split raises each year for the next 3 years and that should be enough to get our pension out of critical status. If we do get a pay raise in the 2013 NMA that will go to us, not the pension. I personally do not see us getting any raises in lieu of not having to pay for health care. BTW, we don't pay the $8.565/per hour, UPS does.

Our pension lost nearly $900M in 2008. We also have about 5,000 more retirees than actives.

 

[JonFrum]

Jon, the way it was explained to us is that we would lose one of our split raises each year for the next 3 years and that should be enough to get our pension out of critical status. If we do get a pay raise in the 2013 NMA that will go to us, not the pension. I personally do not see us getting any raises in lieu of not having to pay for health care. BTW, we don't pay the $8.565/per hour, UPS does.

Our pension lost nearly $900M in 2008. We also have about 5,000 more retirees than actives.

The $8.565 per hour is your money. It's part of your Total Compensation Package. You earned it.

Your money just happens to still be in UPS' possession, but it's your money.

UPS sends some of your money to the IRS and NY state revenue department as your Withholding Tax; some to the Pension and H&W funds as your contributions, some to the Social Security Administration as your contribution, some to the Union as your dues, maybe some to your 401(k) account, maybe some to the United Way as your contribution, etc.

Your pension contributions are yours, and you will be taxed on them when they are paid out to you in retirement.

The Holiday Turkey on the other hand? Now that really is a gift from UPS. Or at least was.

 

[UpstateNYUPSer(Ret)]

My center manager and dispatch sup wasted no time in bringing up the '97 strike. They both suggested that we wouldn't be going through this now if we had allowed UPS to take over our pension. I countered by telling them that our pension was in trouble because we have retirees making more in retirement than when they were working and also because we have at least 5,000 more retirees than actives so there is more money going out the door than coming in. Oh, and that little thing called the Recession didn't help, either.