Central States going broke---

[rod]

Did they not adjust along the way?

Their excuse was always when the market tanked in 2008 they were never able to recover. And more going out than coming in.

 

[quad decade guy]

The Central States Funds full name was Central States, Southeast and Southwest Areas Pension Fund. This fund covered the majority of the US and had millions of members and hundreds of large employers. The members are still around but the companies are not. Outflows exceeded inflows under the governments watch and the fund became insolvent around 2003. With UPS leaving the fund in 2007 the fund was forced to reduce all current and future benefits. The Central States is attempting to rebuild itself but needs government protection to underpin its' balance sheet.

Finally. The correct answer.

Sure glad I didn't retire. Now under the UPS plan at least for now. If I would have followed these genius eggheads on BC.....

By staying, I've added hundreds of dollars to what I will/supposed to get. In the mean time making another cool million with free/best insurance. I start first of 7 weeks vacation right after Christmas. Yep, the envy of many....Hi Ho Hi Ho it's off to work I go...

 

[rod]

Finally. The correct answer.

Sure glad I didn't retire. Now under the UPS plan at least for now. If I would have followed these genius eggheads on BC.....

By staying, I've added hundreds of dollars to what I will/supposed to get. In the mean time making another cool million with free/best insurance. I start first of 7 weeks vacation right after Christmas. Yep, the envy of many....Hi Ho Hi Ho it's off to work I go...

I'm sure you wifes next husband will enjoy the nest egg you left them

 

[DOK]

Their excuse was always when the market tanked in 2008 they were never able to recover. And more going out than coming in.

I’m sorry to hear about your situation.

 

[Up In Smoke]

Why did the IBT negotiate an early settlement in 2007 with UPS, allowing them to withdraw from the fund as the single largest surviving contributor to the fund by far, after striking over the notion 10 years prior.

....and what benefits were reduced?

I'm not involved with the Central States Fund, only my Locals' fund. Most of their woes predates me and I can only relay what I know. The fund froze or reduced benefits shortly after 911 and the financial crash that followed it. It fell into critical status in 2003 and UPS left in 2007. Why did the IBT allow this to happen, I don't know. Why was Bear Stearns allowed to fail and the government bailed out all other Insurance companies and banks? Let this be a lesson to all members, we need to band together, vote in every election and look out for our futures.

 

[burrheadd]

Finally. The correct answer.

Sure glad I didn't retire. Now under the UPS plan at least for now. If I would have followed these genius eggheads on BC.....

By staying, I've added hundreds of dollars to what I will/supposed to get. In the mean time making another cool million with free/best insurance. I start first of 7 weeks vacation right after Christmas. Yep, the envy of many....Hi Ho Hi Ho it's off to work I go...

Hey, Einstein if you retire after 2008 central states going broke doesent affect you

But, you probably knew that

 

[Returntosender]

But when you are in a multi employer plan you get spanked hard

Did not know that

 

[Returntosender]

A bailout for wall street , big auto co and insurance companies.
Ok

And those banks that created the housing bubble

 

[Up In Smoke]

And those banks that created the housing bubble

The banks were acting within the guidelines set by the government. After 9/11, in response to the economic downturn, the Federal Government deregulated much of the banking industry. Loosened were debt to loan and loan to value ratios. Many banks sold these loans to previously under qualified borrowers and the rest is history. Teaser 3, 5 and 7 year balloon loans enticed borrowers to buy more than what they could afford. When these notes came due and the values couldn't support a new loan, the properties went into default. The banks were bailed out because the government realized they were also to blame.

 

[IVE GOTTA PACKAGE 4U]

Did not know that

I don't know the reasoning behind it.

 

[Up In Smoke]

It's also important to remember that pension funds are heavily dependent on US treasuries for stable growth. When Reagan took office the ten year treasury note was around 16% annual return and when he left it was 8%. It continued to drop through the Bush, Clinton and Bush administrations, and hit 3% in 2003. The 10 year hit .6% earlier this year putting a tremendous strain on current plans. Many plans have been forced to rely more on the stock market for income. This is risky knowing the fund has made promises to future retirees.

 

[rod]

It's also important to remember that pension funds are heavily dependent on US treasuries for stable growth. When Reagan took office the ten year treasury note was around 16% annual return and when he left it was 8%. It continued to drop through the Bush, Clinton and Bush administrations, and hit 3% in 2003. The 10 year hit .6% earlier this year putting a tremendous strain on current plans. Many plans have been forced to rely more on the stock market for income. This is risky knowing the fund has made promises to future retirees.

And the promises don't mean crap.

 

[rod]

I’m sorry to hear about your situation.

I will be fine with a reduced pension that is suppose to be somewhere around $1,200 a month from some government program that is also about to tank also. There are many old UPS'ers who won't survive the cuts and everyone will end up supporting them through welfare programs anyway. The bottom line is somewhere along the line the taxpayer is going to be picking up the bill as usual.

 

[IVE GOTTA PACKAGE 4U]

It's also important to remember that pension funds are heavily dependent on US treasuries for stable growth. When Reagan took office the ten year treasury note was around 16% annual return and when he left it was 8%. It continued to drop through the Bush, Clinton and Bush administrations, and hit 3% in 2003. The 10 year hit .6% earlier this year putting a tremendous strain on current plans. Many plans have been forced to rely more on the stock market for income. This is risky knowing the fund has made promises to future retirees.

When your plan is in critical and declining status most of that money is put in the fixed securities so that the plan does not lose any more money

 

[What'dyabringmetoday???]

Look folks, blame who you want from days gone by for Central States winding up in the "state" it is in, but one thing is undeniable,....

....James P. Hoffa and his EBoard(s) have had 23 years to right the ship.

But in the end, the measures taken by his administration(s) have only made it worse.

Uh oh- I hope Big UPS Man doesn't see this....lol.

 

[Up In Smoke]

When your plan is in critical and declining status most of that money is put in the fixed securities so that the plan does not lose any more money

I agree, but when the fund forecast is to maintain a 3% return in order to stay solvent and fixed incomes are south of 1%, where do you go. The US has to start paying their bills and stop printing money. I was just party to a pension fund that was dissolved because of fewer workers and poor returns on investment. Each member, active and retired were given an amount based on years of service and age. The company moved to a 401k based retirement and profit sharing. The employees are still part of the union, but pension is gone.

 

[Up In Smoke]

Correct me if I'm wrong, but the company refused to extend the pension moratorium ( I hope I'm using the right term ) beyond the end of this current contract. This action is a strong signal that pension contributions and levels will be part of the 2023 negotiations. Get informed and get involved.

 

[IVE GOTTA PACKAGE 4U]

I agree, but when the fund forecast is to maintain a 3% return in order to stay solvent and fixed incomes are south of 1%, where do you go. The US has to start paying their bills and stop printing money. I was just party to a pension fund that was dissolved because of fewer workers and poor returns on investment. Each member, active and retired were given an amount based on years of service and age. The company moved to a 401k based retirement and profit sharing. The employees are still part of the union, but pension is gone.

It's very unfortunate. That's why I tell all the guys stay out of debt and save some money in your 401k

 

[Up In Smoke]

It's very unfortunate. That's why I tell all the guys stay out of debt and save some money in your 401k

Absolutely, we call retirement a three legged chair. Your savings, pension and social security make up the legs. Too bad for the youngest of us, that two legs are under attack.

 

[IVE GOTTA PACKAGE 4U]

Absolutely, we call retirement a three legged chair. Your savings, pension and social security make up the legs. Too bad for the youngest of us, that two legs are under attack.

You can't count on every one for everything sometimes you have to depend on yourself