Teamsters face 31 percent pension cut

[cheryl]

Teamsters face 31 percent pension cut - Times Union

Decline in union membership has pummeled private sector pensions

Facing theses cuts, retirees are understandably angry.

"I'm going from middle class to poor,'' said one retiree.

"I don't understand, exactly, where the money went,'' added a woman who, like many of those present, retired from United Parcel Service.

Amid this anger, Local 294 is starting to look to Congress for some help.

 

[UpstateNYUPSer(Ret)]

The Times Union and Local
294 are both based out of Albany (NY).

 

[Mugarolla]

According to the article, the guy was explaining that the pension fund is a Ponzi Scheme.

He says that there is more money going out than there is being paid into the fund.

Brilliant.

 

[UpstateNYUPSer(Ret)]

Amid this anger, Local 294 is starting to look to Congress for some help.

This "help" is in the form of a $1B loan with a 1% interest rate and 10 year grace period before repayment must begin. It is the hope that the $1B infusion will keep benefits at their current levels and that the fund will rebound over the next 10 years to the point where it can sustain benefits and make their loan payments.

 

[twoweeled]

Amid this anger, Local 294 is starting to look to Congress for some help.

This "help" is in the form of a $1B loan with a 1% interest rate and 10 year grace period before repayment must begin. It is the hope that the $1B infusion will keep benefits at their current levels and that the fund will rebound over the next 10 years to the point where it can sustain benefits and make their loan payments.

Interesting news. I would just hope, that with a $billion infusion, others wouldn't start to pick at it for brainstorming ideas. End up in the same boat, with an added billion in debt !
Obviously, I don't have a lot of faith in our leaders.

 

[UpstateNYUPSer(Ret)]

Interesting news. I would just hope, that with a $billion infusion, others wouldn't start to pick at it for brainstorming ideas. End up in the same boat, with an added billion in debt !
Obviously, I don't have a lot of faith in our leaders.

Pension funds cannot be intermingled with other funds.

 

[TearsInRain]

i shudder at the idea of relying on any kind of private pension

what a crappy retirement system this country has been running

 

[twoweeled]

Pension funds cannot be intermingled with other funds.

Just asking. Were not UPS contributions/funds used direct/indirectly to fund retirees who's companies went "ala bye bye"?

 

[twoweeled]

i shudder at the idea of relying on any kind of private pension

what a crappy retirement system this country has been running

I wonder if any of the Union's officers, are facing anywhere near a 30% cut? I see more cuts on the horizon. Textbook screwing. Don't screw too many at once or you'll cause a rebellion. A little at time, and everyone just (quietly) hopes they aren't next. By the time we realize we got screwed, it's too late. How many times has this type of scenario played out in history.

 

[TearsInRain]

I wonder if any of the Union's officers, are facing anywhere near a 30% cut? I see more cuts on the horizon. Textbook screwing. Don't screw too many at once or you'll cause a rebellion. A little at time, and everyone just (quietly) hopes they aren't next. By the time we realize we got screwed, it's too late. How many times has this type of scenario played out in history.

no offense but you guys will be too old by the time you catch it

no way will millennials pay for boomers retirements if it means more taxes, we'll let them work till they die

private retirement accounts definitely have the potential to be superior, as long as you either educate people or just pull a mandatory % from the paycheck, and as long as you're in a decent fund

it's not hard to get rich, but it's really easy to get poor

 

[Inthegame]

Just asking. Were not UPS contributions/funds used direct/indirectly to fund retirees who's companies went "ala bye bye"?

Pension plans set benefit levels according to contribution rates. If your employer has a low contribution rate, you'll get a lower benefit. If employers go out of business without paying their unfunded/withdrawal liability, all existing employers (including participating local unions) have increased liability to support the "orphans". The law has changed and now plans can cut those benefits.

I wonder if any of the Union's officers, are facing anywhere near a 30% cut?

They will face the same cut as is determined to any other participating employers depending on contribution rates.

 

[UpstateNYUPSer(Ret)]

Just asking. Were not UPS contributions/funds used direct/indirectly to fund retirees who's companies went "ala bye bye"?

Yes.

All contributions are used to pay all retiree benefits.

 

[Inthegame]

Yes.

All contributions are used to pay all retiree benefits.

All negotiated contributions, along with investment earnings, are used to pay retiree benefits and plan administration costs.

 

[UpstateNYUPSer(Ret)]

Yes.

All contributions are used to pay all retiree benefits.

All negotiated contributions, along with investment earnings, are used to pay retiree benefits and plan administration costs.

My point was UPS money is not used solely for UPS retirees.

 

[Inthegame]

My point was UPS money is not used solely for UPS retirees.

And I was not questioning your sagacity but merely adding flavor and aroma...

 

[UpstateNYUPSer(Ret)]

And I was not questioning your sagacity but merely adding flavor and aroma...

Great....now I have to go find and then dust off my thesaurus.

 

[twoweeled]

My point was UPS money is not used solely for UPS retirees.

that's what I looking for, specifically. That's what I recall being told.

 

[twoweeled]

And I was not questioning your sagacity but merely adding flavor and aroma...

Gotta admit. I had to look up sagacity. Thought it might be a Yogi Berra. Nope! It's a real word alright.

 

[UpstateNYUPSer(Ret)]

Gotta admit. I had to look up sagacity. Thought it might be a Yogi Berra. Nope! It's a real word alright.

I also had to break out the Webster's for that one.

 

[twoweeled]

no offense but you guys will be too old by the time you catch it

no way will millennials pay for boomers retirements if it means more taxes, we'll let them work till they die

private retirement accounts definitely have the potential to be superior, as long as you either educate people or just pull a mandatory % from the paycheck, and as long as you're in a decent fund

it's not hard to get rich, but it's really easy to get poor

Maybe i'm not understanding you, or vice versa. Taxes will not be making up for any of this (pension cuts). The only ones who have a chance of being rescued through taxes, are civil service employees.
It'll take more than educating people to get anywhere near the needed % to save retirement money, unless virtually forced someway.
I agree, private accounts can be superior .