UPS claims proposed Central States benefit reductions illegal

Discussion in 'The Latest UPS Headlines' started by cheryl, Apr 29, 2016.

  1. cheryl

    cheryl I started this. Staff Member

    UPS claims proposed Central States benefit reductions illegal - Business Insurance

    The company, which withdrew from the $17.8 billion pension fund as part of a collective bargaining agreement with the International Brotherhood of Teamsters at the end of 2007, might also be required to pay between $3.2 billion and $3.8 billion in benefit payments if the benefit reduction is approved by the Treasury Department.

    A “backstop agreement” in that CBA stated that in the event “at some point in the future if Central States ever lawfully cut benefits to that group, UPS would provide a supplemental retiree benefit,” UPS spokesman Steve Gaut said. “As a result of that backstop agreement now, we are potentially liable for a future payment to those (UPS) employees that are retirees that are eligible, associated with what that benefit cut turns out to be,” Mr. Gaut said.
  2. realbrown1

    realbrown1 Annoy a liberal today. Hit them with facts.

    If they agrred to make up for the shortfal, then how is that illegal?
  3. By The Book

    By The Book Well-Known Member

    Cheryl, I'm sorry and I apologize for our members inability to ask you a legal
  4. Boulevard859710

    Boulevard859710 Active Member

    Sounds to me that UPS is on the side of the people who face benefit reduction. That's the way wording reads to me anyway.
  5. scooby0048

    scooby0048 This page left intentionally blank

    Well it would have been interesting to read if I didn't have to sign up.
  6. upschuck

    upschuck Well-Known Member

    Because they are trying to cut more than what they think it should be for UPS people, and that UPS paid for UPS retirees, and not other company's retirees.
  7. realbrown1

    realbrown1 Annoy a liberal today. Hit them with facts.

    On some of those UPS retirees, UPS has make up the difference.

    UPS isn't looking out for any retirees.

    UPS is looking out for UPS.
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  8. PT Car Washer

    PT Car Washer Well-Known Member

    UPS retirees are taking a much larger reduction in their pensions then other retirees because UPS guaranteed to make up the difference. UPS says that is illegal.
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  9. Boulevard859710

    Boulevard859710 Active Member

    I understand the wording now. Thanks for explaining. [emoji3]
  10. realbrown1

    realbrown1 Annoy a liberal today. Hit them with facts.

    That does sound illegal.

    If that is what is being proposed.
  11. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    ...and if this is indeed the case they would be right...
  12. silenze

    silenze Lunch is the best part of the day

    Ups paid 100% of its share already. The other companies retirees should take the cuts
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  13. trickpony1

    trickpony1 Well-Known Member

    Here's a question:
    A co-worker said the company didn't say anything about making up the difference when the last contract was "passed".

    Where is it in writing that the company will make up the losses and for how long? Will/can the company, in 2018, just up and say, ...."you're out of luck retirees....we're done"?

    The company would like the public and the government to think they are taking care of the retirees but are they really?
  14. upschuck

    upschuck Well-Known Member

    Page 218-219 of the Central Region Supplement.

    And yes, the company can try and take that language out of the next contract, but we have to approve any and all changes.
  15. trickpony1

    trickpony1 Well-Known Member

    That's all well and good but the company has rammed contracts down our throats in the past and it wouldn't be unlike them to conceal the language you refer to and get a "landslide" yes vote on the proposals.

    Besides......who is gonna remember this in 2018?
  16. upschuck

    upschuck Well-Known Member

    All changes are highlighted, we will know what has changed. We can only do, what we can do.
  17. rod

    rod retired and happy

    All it takes is some crappy legislation snuck through like what is happening to those of us who retired before 2009 and everyone would be in the same boat as we are. Eventually ALL pensions will disappear.