Also in the same letter, the remaining employers still in CS will have to pay a immediate 5% additional payout to the fund and annually over the coming years until the shortfall is covered, an additional 10% to be paid in. Federal law gives CS 7 years to obtain fully funded status.
The way I read the letter we have nothing to worry about "BUT" I think in the long run you have the right idea in keeping a watchful eye on this situation.
Big raises a good point folks in that we shouldn't bank on any pension and treat it in the same respect as many suggest with social security. Save! Save! Save! 401k, IRA, etc. and let the pension just be extra gravy and social security purely beer money!
One thing these plans also have to worry about is if they kill service pensions that allow early outs and force people to full retirement, then we qualify for accured pensions meaning you take the number of years service and multiplied by a specified dollar amount and in the case of CS, last time I looked it was $100 per month per year of service. In my case if I go to 65, it's 40 (years of service) times $100 and this is my monthly pension amount or $4k per month.
In the new UPS contract, by the end of this latest contract, that number will have risen to $172 so I would guess for me if all things remain, 26 years times $100 equals $2600 from CS and then 14 years times $172 equals $2408 for a total of $5008 per month pension. I've also been told that the new contract and UPS pension has a retirement age of 62 not 65 "BUT" Big's good advice comes into play again. Also 14 years gives CS 7 years by law to be fully funded before I retire so things should/could get better "BUT" as Big said!
YOU BIG AND I WAS HAVING A GOOD DAY TOO!