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UPS Union Issues
Think it thru....Pension Takeover
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<blockquote data-quote="Cezanne" data-source="post: 242536" data-attributes="member: 5104"><p>I was just skimming over the new pension reform act, the actually read and understanding is way over my head, but there was an interesting provision relating to tax penalities for any pension fund listed as critical that go into effect in January "08". Something like 10 percent surcharge of the current underfunded liablity. I believe that those payments go directly to Uncle Sam providing no relief or help to the beleaguered pension funds and or future pensioners. Whether this applies to the Central States trust, I really do not know, but if it does it provides another additional incentive for pushing this contract through in the next 3 months. With the withdraw liability basically a done deal with UPS paying 6 plus billion into the trust before the new year I would imagine that those additional funds should help push the Central States underfunding to a acceptable level to prevent these fines, taxes or penalities. This saves everybody contributing and or participating in that fund not just the UPS members. </p><p> </p><p>The costs involved with this deal are considerable, but I am guessing that the professional bean counters from both sides selected the less of two evils. Also consider that UPS has already established pension funds set up for their employees (union and non-union) that apparently have been very well taken care of over the years, in other words that have the means or funds to absorb the additional costs. </p><p> </p><p>Another big issue with this contract has to do with our Health and Welfare benefits active and or retired. Most companies are balking about the rising health costs. Whether you are under the company or union sponsored Health and Welfare plans, those benefits are provided by negotiated hourly increases in master contract language. From my limited understanding those weekly contributions are equal to the current pension payout. It is another costly factor that tends to take a back seat to the current pension debate.</p><p> </p><p>Guess we all have to wait and see, take some deep breaths and let us all practice patience....<img src="/community/styles/default/xenforo/smilies/group1/w00t.gif" class="smilie" loading="lazy" alt=":w00t:" title="W00t :w00t:" data-shortname=":w00t:" /></p></blockquote><p></p>
[QUOTE="Cezanne, post: 242536, member: 5104"] I was just skimming over the new pension reform act, the actually read and understanding is way over my head, but there was an interesting provision relating to tax penalities for any pension fund listed as critical that go into effect in January "08". Something like 10 percent surcharge of the current underfunded liablity. I believe that those payments go directly to Uncle Sam providing no relief or help to the beleaguered pension funds and or future pensioners. Whether this applies to the Central States trust, I really do not know, but if it does it provides another additional incentive for pushing this contract through in the next 3 months. With the withdraw liability basically a done deal with UPS paying 6 plus billion into the trust before the new year I would imagine that those additional funds should help push the Central States underfunding to a acceptable level to prevent these fines, taxes or penalities. This saves everybody contributing and or participating in that fund not just the UPS members. The costs involved with this deal are considerable, but I am guessing that the professional bean counters from both sides selected the less of two evils. Also consider that UPS has already established pension funds set up for their employees (union and non-union) that apparently have been very well taken care of over the years, in other words that have the means or funds to absorb the additional costs. Another big issue with this contract has to do with our Health and Welfare benefits active and or retired. Most companies are balking about the rising health costs. Whether you are under the company or union sponsored Health and Welfare plans, those benefits are provided by negotiated hourly increases in master contract language. From my limited understanding those weekly contributions are equal to the current pension payout. It is another costly factor that tends to take a back seat to the current pension debate. Guess we all have to wait and see, take some deep breaths and let us all practice patience....:w00t: [/QUOTE]
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