Central States Pension Fund cuts
- Thread starter rod
- Start date
Catatonic
Nine Lives
Here's why UPS won't pay
The Central States Pension Fund used to administer pension benefits to a group of unionized UPS drivers,but the company left the fund in 2008 as a way to save money and provide retirees with better benefits. It set up its own pension fund, but only took current workers with it. Any UPS drivers who had already retired would still be covered solely by the Central States fund.
"We do not have a contractual obligation to cover supplemental benefits for those UPS employees that had retired and were in the Central States fund prior to 2008," a UPS spokesman told CNN Money.
UPS paid $6.1 billion in order to exit the fund. That should have covered the pension costs for UPS workers in the Central States fund that retired beforehand, including Dopp.
"UPS regrets that economic challenges and other conditions have resulted in Central States administrators choosing to propose a difficult restructuring that will potentially adversely impact thousands of retired UPS employees," the spokesman said.
But the company has already made "substantial" payments to fund its former workers' retirements, he added.
The Central States Pension Fund used to administer pension benefits to a group of unionized UPS drivers,but the company left the fund in 2008 as a way to save money and provide retirees with better benefits. It set up its own pension fund, but only took current workers with it. Any UPS drivers who had already retired would still be covered solely by the Central States fund.
"We do not have a contractual obligation to cover supplemental benefits for those UPS employees that had retired and were in the Central States fund prior to 2008," a UPS spokesman told CNN Money.
UPS paid $6.1 billion in order to exit the fund. That should have covered the pension costs for UPS workers in the Central States fund that retired beforehand, including Dopp.
"UPS regrets that economic challenges and other conditions have resulted in Central States administrators choosing to propose a difficult restructuring that will potentially adversely impact thousands of retired UPS employees," the spokesman said.
But the company has already made "substantial" payments to fund its former workers' retirements, he added.
Mugarolla
Light 'em up!
They will not pay for anyone retired before 2008, but will pay for anyone retired 2008 and later.
At least for the time being, until we are sold out by the union.
The union? How about other members. If the protecting language disappears, it will be a company proposal. If a contract without protecting language passes, it will be the fault of the voting members. The "union" doesn't vote. The members do.
5habits100
Well-Known Member
They have to have someone to blame for them not sending their ballots back in the self addressed envelope provided to them. Maybe a pen should be provided also.
Lead Belly
BANNED
Now come on guy you aren't telling them what they want to hear.
Mugarolla
Light 'em up!
The union can stand their ground and not accept any offers from UPS to remove it.
The two sides negotiate until both sides come to an agreement and then, and only then, is it submitted to the membership for a vote.
It is extremely difficult, although not impossible, for UPS to force a vote on a contract that the union did not agree with.
And the clause can be removed from the contract and UPS is still liable for any reduction. It is stated in the UPS/IBT retirement plan.
UPS has to change the clause to say that any reduction will be included in the offset. The UPS/IBT pension terms can be changed through the CBA.
It will not happen in 2018. Too many employees with a stake in it.
Down the road? No one knows.
5habits100
Well-Known Member
It only works if the members support a strike
The fund was STILL underfunded when UPS paid in the $6.1B.
rod
Retired 23 years
All that has to happen is some paid-off legislator tacks his bill on to some other piece of legislation to allow all companies to trash their pensions and BOOM, over night UPS can trash your pension. In a nut shell that's what happened to my pension. An idiot legislator from Mn. (damn that hurts) stuck his bill onto another and being the other one "had" to pass his went through also. You all keep reminding yourself-the only 2 SURE things in life are "death and taxes".
Lead Belly
BANNED
The problem is, there is no safe diversification any longer. Washington has made sure that all forms of investment are subject to corporate, private and governmental raiding on an on going basis. The only safe form of retirement saving involves hollowing out your mattresses and praying you don't have a house fire.
rod
Retired 23 years
Also a lot of truth to this. My jars of gold buried in the back yard are my only "safe" investment.------------------------------------------I wish
rod
Retired 23 years
rod
Retired 23 years
Mugarolla
Light 'em up!
Not necessarily. UPS can be convinced, through negotiations, to leave it alone.
It does mean that they may get something else they want.
Look at the healthcare on the last contract. UPS gave in.
It wasn't a strike issue. Over half the country was already on Teamcare or a local plan.
UpstateNYUPSer(Ret)
Well-Known Member
UPS wanted the unfunded liability of healthcare off of their books.
The Union wanted the healthcare.
