question on possible pension changes 10 years down the road....

Discussion in 'UPS Retirement Topics' started by coldworld, Feb 2, 2008.

  1. Coldworld

    Coldworld Taking it all back.....

    Hey all. This current contract says that ups cant change or challenge the current pension rules for 10 years. Do you all know what Im talking about? Now, with some parts of the country receiving very good pensions, ie western conference, mechanics, midwest, etc, and other plans not as good, do you think in 10 years ups will try to equal out what everyone gets by rolling all these funds into one? Also, drivers who still have 20 or so years with the company will be collecting more than drivers who are retired or soon to retire in 5 or less years because the pension contributions of the last 3 or 4 contract have been much higher than drivers who started in the 70-80's. Even though cost of living will be higher in 20 years thus us making more money, I bont believe ups will consider this and would like everyone to continue year after year to get the same as the central states 3000 dollars??? Is this number right. Whats a 3000 pension going to be worth in 20 years....jack. So lets lower western conference pension and pump that into central states to raise their allowance. Can this be done, are there any pension laws that discourage this. Also, there was talk about subtracting social security from the pension payment, this was shot down for now, but could reappear in future this legal to do also. Any comments or anyone who is more aware of pension laws please chime in!
  2. RockyRogue

    RockyRogue Agent of Change

    I'm not a pension expert but I think this is a very bad idea. Your union set it up this way for a reason. Messing with something like this, in the fashion you mention, can not be healthy. I would be very surprised if there isn't a law against doing just this. -Rocky
  3. IWorkAsDirected

    IWorkAsDirected Outa browns on 04/30/09

    No thanks! We earned that good fully funded pension, it is not our fault your administrators made poor choices or your local negotiated a bad supplement.
  4. Baba gounj

    Baba gounj pensioner

    What you are asking is illegal.
    Each pension plan is seperate and not interchangeable.
    That is why some have cut payouts , while others have not. Its all about who controls the plan; are they any good or total screw-ups ?
    As for the 10 yr hold, that is only a promise that UPS will not try to take over any other pension plans. With so much vague language in this current contract IMHO I don't believe they will be held to it.
  5. Brown Dog

    Brown Dog Brown since 81

    I think each pension plan is accountable for their own members and shouldn't have to "bail out" or level out others. All we can do is start telling our union reps want we want negotiated in the next contract. I agree that current amounts are going to be continually eaten up by inflation and could use some upwards adjustments. Best bet is plan as much as you can on your own ie.. 401, ROTH, Stock purchase isn't a bad idea with the discount on automatic payroll deductions.
  6. Coldworld

    Coldworld Taking it all back.....

    No, I dont want that , I was being smart ass people, I was wondering if this could ever happen. Why would the teamsters put that 10 year little tid-bit in there if they wernt concerned about something happening down the line somewhere.
  7. IDoLessWorkThanMost

    IDoLessWorkThanMost New Member

    WHo said it was the Teamsters?
  8. Fullhouse

    Fullhouse Member

    If anything, UPS may increase CS payouts buy $500 after this contract expires in 2013, just to entice other pension participants about the idea of joining a UPS Teamster pension plan. Just a thought.
  9. Coldworld

    Coldworld Taking it all back.....

    but, there are folks collecting 4 -6 k from prnsions with ups. Future retirees in 20 years could see 6-8 k from much higher hourly contributions.
  10. JonFrum

    JonFrum Guest

    The payout from the new UPS pension plan is currently worse than from all the other Teamster pension plans. A $500 increase in 2013 would probably keep them in last place.

    See this article and comparison chart of all the pension plans UPSers are in. . . .
  11. Coldworld

    Coldworld Taking it all back.....

    some of those payouts seem a little low.
  12. pkg-king

    pkg-king New Member

    Where in the heck is this local!! I've never heard numbers that big, that's almost unbelievable.
  13. pkg-king

    pkg-king New Member

    How is it fair that I can do the same job, with the same company, as someone else and collect half of what they get upon retirement, and no health benefits? The only way for EVERYONE to enjoy the health benefits, early retirement (years of service/any age), and a decent pension is for us to go under one company plan. We had some guys retiring in the late '90's , with 30 years of service, collecting $600 per month, with no health benefits!! That is wrong, and probably criminal.
  14. IDoLessWorkThanMost

    IDoLessWorkThanMost New Member

    Here in ENE maxes out at around $4,800. Upstate NY a whole lot more.
  15. IDoLessWorkThanMost

    IDoLessWorkThanMost New Member

    I pay 1000$/month for a one bedroom apt in a distant suburb of a big city here in New England on a crappy 22.3 wage.

    Do you think that's fair when the same apartment is 300$ in Houston or 500$ in Miami?

    So maybe it's more fair than you originally thought that pension payouts vary upon what region you work?
  16. doolittle95

    doolittle95 Member

    Good topic Coldworld,
    I've been wondering the same thing myself, some posters have already stated that combining funds would be illegal, i don't know that to be true or not. I do know that congress can change the rules.....

    However, it seems to me that a "promise" by UPS not to go after any more funds for 10 years is a guarantee that they will go after some in the future. As a teamster in the west, the last thing i want is to see my good pension compromised. I've got 14 years to go, so thats 2-3 more contracts for me. Many of my friends have 20+ years left. The best thing i can do for myself (and my fellow teamsters) is get involved and educated on the situation. and are both informative sites (as well as the brown cafe), i've also recieved interesting insight from talking to some of the freight teamsters (ABF) they seem to be more educated and involved in the union-at least out here in loc 104.

    So, to answer your other questions, yes ups will go after more funds, they will keep chipping away at them relentlessly, because it saves them more $$$ in the long run to fund a company run plan. They will illustrate the differnces btween funds around the country (divide and conquer). They will illustrate how their $3k/month sounds better than the $1k/mo you'll get from the gov. when your fund goes bankrupt, etc. Fear tactic? yes-plausible?...only if we keep letting them buy their way out of pension funds. CS is likely to run out of $$$ faster now, the $4.9 bil from ups only buys a little time. The fund will deplete at a faster rate now, and the worker/retiree ratio just got a lot bigger. Fortunately those educated freight teamsters i was telling u about kept their companies from buying out of CS in their current contract negotiations.

    I do feel bad for the folks in CS, thru no fault of their own the fund got screwed and then the 2006 pension reform bill forced ups' hand on this latest contract. (Whether ups really wanted this pension reform-to "force their hand"-i'm not smart enough to know. I know the teamsters were lobbying against it.)

    Is it fair i get a good pension and others don't? no. Should i be a nice guy and give them some of my pension to make it fair? no. Should the employee always be the last priority for profits sake? no, not in this business. What i should do is get educated/involved and fight my a@@ off to keep my good pension/benefits. I should pay attention to what labor/pension laws the house is trying to pass. I should pay attention to what the teamsters, TDU and the company is telling me. Then filter it all and decide what really is best for me. I should pay attention to what my pension fund managers r doing with my money. Are they raising or cutting the multiplier and why? I should talk to the fedex ground guys and help the teamsters organize them. That helps ups and us in the long run. I should educate the partimers (and full timers) who don't sign up in this sorry right-to-work state about how important their union involvement is.

    Finally, i should reduce my debt, increase my investments and make sure my family is protected because as always, whatever happens in my world, good or bad is usually a direct result of what i did or didn't do.

    and now..back to my world, of which the vast majority occurs, thankfully, on the other side of cyberspace. peace.
  17. tunemixer

    tunemixer New Member

    I will be retiring Dec. 31 2009 and have been talking to our BM . I was thinking of leaving Dec.31 2007 but he suggested I stay another two years . I'll be 62 and will go right into collecting SS at the same time I collect my pension. By staying another two years my benefit will increase almost 600.00 a month. I will only have 26 years in but because I am closer to the max age of 64 my pension is going to be more than a driver that retired with 30 years in at age 52. Guess they figure they won't have to pay me as long. I will also get my health benefits for 3 years after retirement.My wifes will be at a reduced rate because she is younger than I am. My monthly bnefit will be 4025.00 a month. Not too shabby. I was also told they may do away with the up front money that retirees can take. Now its a max of 50,000. Of course that lowers your monthly check. There is also more money from UPS going into the pension but they haven't decided if they will just put the money in the fund or spread it out in monthly payments. But whatever you have earned up to this point will not be lowered if the change the pension . Only future benefits will be effected. I'm in Northern New England. Just thought I would share this with you.
  18. Local639

    Local639 Guest

    In the DC area we just received a letter from the union. They are cutting the pension by 30%, and require a punch 50 weeks a year to receive the maximum contribution for that year. Vacations and weeks with no punches do not count towards the 50 weeks, so no senior driver will be receiving the maximum contribution from this point on.
    Some of the reasons given for the lowering of the pension is too many UPSers taking the early outs, and the increased contributions increased their liability. There is a meeting next Saturday, I think we have a few questions to ask our officers at 639. People who retired last year will be getting higher pensions then if they had worked a few extra years :/