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UPS Retirement Topics
UPS to pay pension up to Normal Retirement Date?
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<blockquote data-quote="35years" data-source="post: 3679837" data-attributes="member: 60822"><p>You are incorrect.</p><p>The agreement for UPS to exit CS was negotiated in late 2007 as part of the terms of the new contract.</p><p>Link... <a href="https://www.nytimes.com/2007/10/01/us/01labor.html" target="_blank">Teamsters and U.P.S. Reach Deal on Pensions</a></p><p></p><p>The prior contract was due to expire until 2008 (July 31), but because of pending rule changes for multi-employer pensions about to take effect in January of 2008, the two sides negotiated a contract settlement that included the terms of the CS exit early, and had it ratified on December 19, 2007.</p><p>Link... <a href="https://www.ttnews.com/articles/ups-contract-teamsters-ratified" target="_blank">UPS Contract with Teamsters Ratified</a></p><p></p><p>The contractual agreement allowed UPS to withdraw from CS (with the 6-8 Billion legally mandated already accrued liability; not a penalty). In return, UPS agreed to offset any reduction in pension benefits UPS retirees might face in the future as a result of CS reducing benefits because of insolvency.</p><p></p><p>In other words the 6-8 billion UPS paid at withdraw was the amount it already owed future UPS retirees, and the payment would be mandated by law of any company wishing to withdraw from a fund. The Teamsters only agreed to allow UPS to withdraw if UPS agreed (by contract) that if CS later became insolvent and reduced benefits, UPS employees (not all CS retirees) would not have their pension benefit cut, and UPS would foot that bill.</p></blockquote><p></p>
[QUOTE="35years, post: 3679837, member: 60822"] You are incorrect. The agreement for UPS to exit CS was negotiated in late 2007 as part of the terms of the new contract. Link... [URL='https://www.nytimes.com/2007/10/01/us/01labor.html']Teamsters and U.P.S. Reach Deal on Pensions[/URL] The prior contract was due to expire until 2008 (July 31), but because of pending rule changes for multi-employer pensions about to take effect in January of 2008, the two sides negotiated a contract settlement that included the terms of the CS exit early, and had it ratified on December 19, 2007. Link... [URL='https://www.ttnews.com/articles/ups-contract-teamsters-ratified']UPS Contract with Teamsters Ratified[/URL] The contractual agreement allowed UPS to withdraw from CS (with the 6-8 Billion legally mandated already accrued liability; not a penalty). In return, UPS agreed to offset any reduction in pension benefits UPS retirees might face in the future as a result of CS reducing benefits because of insolvency. In other words the 6-8 billion UPS paid at withdraw was the amount it already owed future UPS retirees, and the payment would be mandated by law of any company wishing to withdraw from a fund. The Teamsters only agreed to allow UPS to withdraw if UPS agreed (by contract) that if CS later became insolvent and reduced benefits, UPS employees (not all CS retirees) would not have their pension benefit cut, and UPS would foot that bill. [/QUOTE]
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