Retired union workers facing 'unprecedented' pension cuts.

[RealPerson]

Now,
I did not read the article, I am out of town. Friend said it does include UPS and Teamsters were going with this.
Can ANYONE tell me if it is True if this "Could" affect UPS people and if Teamsters Leaders are for this?

"
[h=2]Hundreds of thousands of retired union workers are facing pension cuts that could slash their monthly payments in half — or even more."[/h](sorry it is bold -- Cut and paste from phone)
Retired union workers facing 'unprecedented' pension cuts - Nov. 15, 2013

 

[PiedmontSteward]

Based on my understanding, it would not affect UPS workers that retire(d) after 2008 as UPS is contractually obligated to "pick up the tab" on any pension shortfalls when/if Central States is taken over by the PBGC as part of their pension will be under CS and the rest (post 2008) will be under the UPS/IBT Plan.

The proposed pension reform would, however, affect other Teamsters still covered by Central States. Hoffa sent out a letter at the end of October on IBT's stance on the issue: http://www.tdu.org/sites/default/files/IBTletteronSolutionsNotBailouts_0.pdf

 

[brett636]

Just another reason why saving for your retirement is the best way to ensure the retirement you dreamed of. Having a pension to look forward too is nice, but its not absolute. The problem highlighted in the article is that the dire financial position some pensions are in will cause benefit cuts whether the law changes or not. The retirees are going to get screwed and its just a matter of how badly they will be screwed. I can't tell you who within UPS or the Teamsters are supporting this change in the law, but the math can't be avoided. Save is if you have no pension and if its still there come retirement you have that much more money to work with.

 

[Anonymous 10]

I'm glad I'm in the Ibt/ups joint teamster pension plan that is 103.61% funded. Nothing like a single employer fund.

 

[oldngray]

I'm glad I'm in the Ibt/ups joint teamster pension plan that is 103.61% funded. Nothing like a single employer fund.

Until we turn 65 and Central States takes over. Then we will be hoping Social Security is still around.

 

[Anonymous 10]

Until we turn 65 and Central States takes over. Then we will be hoping Social Security is still around.

Every contract so far guarantees it if central states goes under. It's over 103.61% funded. I think it will be good for a long long long time. It's not paying out those 4 5 6 grand pensions so I'm betting it stays funded. No cf or Preston or Alvin or the many many other to bring us down. Think about it.

 

[Bubblehead]

Every contract so far guarantees it if central states goes under. It's over 103.61% funded. I think it will be good for a long long long time. It's not paying out those 4 5 6 grand pensions so I'm betting it stays funded. No cf or Preston or Alvin or the many many other to bring us down. Think about it.

Are you saying that UPS is guaranteeing the Central States portion of my pension benefits, 14 years worth, in the case that Central States fails? Even after I turn 65?

 

[BMWMC]

Just another reason why saving for your retirement is the best way to ensure the retirement you dreamed of. Having a pension to look forward too is nice, but its not absolute. The problem highlighted in the article is that the dire financial position some pensions are in will cause benefit cuts whether the law changes or not. The retirees are going to get screwed and its just a matter of how badly they will be screwed. I can't tell you who within UPS or the Teamsters are supporting this change in the law, but the math can't be avoided. Save is if you have no pension and if its still there come retirement you have that much more money to work with.

Make sure some of its in gold bullion you take possession of.

 

[Anonymous 10]

Are you saying that UPS is guaranteeing the Central States portion of my pension benefits, 14 years worth, in the case that Central States fails? Even after I turn 65?

Yes I am. Call me next week and I'll have a better explanation.

 

[Bubblehead]

Every contract so far guarantees it if central states goes under. It's over 103.61% funded. I think it will be good for a long long long time. It's not paying out those 4 5 6 grand pensions so I'm betting it stays funded. No cf or Preston or Alvin or the many many other to bring us down. Think about it.

Are you saying that UPS is guaranteeing the Central States portion of my pension benefits, 14 years worth, in the case that Central States fails? Even after I turn 65?

Yes I am. Call me next week and I'll have a better explanation.

Make you wonder why the old guys aren't running for the door?

 

[upschuck]

407 is correct. Back at last contract when UPS took over the pension, that was one of the big selling points for UPS to take it over, that if IBT pension went broke or couldn't make full payments, that UPS would take over all the payments and make up the difference.

 

[Anonymous 10]

Make you wonder why the old guys aren't running for the door?

Time and place time and place

 

[skunk]

In article 34 of the master a paragraph reads.

The UPS/IBT Plan will recognize full-time service in the CS plan for determining eligibility for the benefits in this section and will offset at normal retirement age the benefits accrued from the CS Plan commencing at normal retirement age. If the benefit paid from the CS plan is reduced as permitted or required by law, the amount of such reduction shall not be included in this offset.

What does this mean? If the benefit is reduced by law the reduction shall not be included in this offset. Page 85 contract book.

 

[rod]

UPS could shut the door tomorrow if some major terrorist event or national disaster happened. What I'm getting at is don't for one minute think that a pension or health insurance is a sure thing. You know what they say about sure things-------------------------there are only two of them----------------death and taxes.

Debbie Downer Noise - YouTube

 

[InsideUPS]

In article 34 of the master a paragraph reads.

The UPS/IBT Plan will recognize full-time service in the CS plan for determining eligibility for the benefits in this section and will offset at normal retirement age the benefits accrued from the CS Plan commencing at normal retirement age. If the benefit paid from the CS plan is reduced as permitted or required by law, the amount of such reduction shall not be included in this offset.

What does this mean? If the benefit is reduced by law the reduction shall not be included in this offset. Page 85 contract book.

IMO......it means exactly what it states.... UPS is NOT liable for the offset in reduction. I believe that my part-time pension is significantly more secure than that of those in the Central States. Very tragic and one of the downsides of multi-employer pension funds.

 

[skunk]

IMO......it means exactly what it states.... UPS is NOT liable for the offset in reduction. I believe that my part-time pension is significantly more secure than that of those in the Central States. Very tragic and one of the downsides of multi-employer pension funds.

That's what I was thinking. UPS will not make up the difference.

 

[oldngray]

UPS is NOT liable for the offset in reduction is the way I understand it too. If the government steps in because of Central States insolvency that potion of our pensions would get reduced by about 2/3. UPS guarantees the offset until 65 I think, then we are at the mercy of Central States.

 

[pretender]

In article 34 of the master a paragraph reads.

The UPS/IBT Plan will recognize full-time service in the CS plan for determining eligibility for the benefits in this section and will offset at normal retirement age the benefits accrued from the CS Plan commencing at normal retirement age. If the benefit paid from the CS plan is reduced as permitted or required by law, the amount of such reduction shall not be included in this offset.



What does this mean? If the benefit is reduced by law the reduction shall not be included in this offset. Page 85 contract book.

We went through this a while back, because I had the same concern. However, BigUnionGuy assured me that UPS would cover the difference. If 407 is agreeing, I have to assume they would be in the know.

 

[oldngray]

I am just cautious about trusting promises from UPS that aren't in writing.

 

[grgrcr88]

Are you saying that UPS is guaranteeing the Central States portion of my pension benefits, 14 years worth, in the case that Central States fails? Even after I turn 65?