Central States Pension Reduction Plan Letter announces Cuts - October 2015
- Thread starter Hofficer Hater
- Start date
oldngray
nowhere special
Current employees are covered but do have the kicker of the minimum age requirement will start increasing in a few years. It looks like years of service pensions will be phased out.
CoolArrow
Well-Known Member
Oh no!![emoji29]
I started in 71 and went full in 77 and retired 2012. 41 years. My letter says my benefits will be cut from $2,699.06 to $1650.81. A cut of $1,048.19. That would have been 27 years in CS. But it goes on to say "because you are a member of the protected UPS Transfer Group, you should expierience no loss of benefits under our proposed pension rescue plan....because UPShas committed to making up the difference."
My wife is freaked out. She was set to retire next summer and now thinks she will have to stay. She does not believe UPS will hold up its 2 billion dollar commitment. Quite frankly, neither do I.
This really sucks. I may or may not be ok, and I knew it was coming but it's takes the wind out of my retirement plans.
My wife is freaked out. She was set to retire next summer and now thinks she will have to stay. She does not believe UPS will hold up its 2 billion dollar commitment. Quite frankly, neither do I.
This really sucks. I may or may not be ok, and I knew it was coming but it's takes the wind out of my retirement plans.
Faceplanted
Well-Known Member
All your money is back and then some at this point in time. Close to retirement age you shouldn't have your money tied in aggressive 401k stocks. The older you get the more you should be going towards bonds and other low risk investments. It's really not rocket science. The hour u spend on here a eel spent reading about how to invest can have you stable at a young age. The 401k is not a scam, it's free money (untaxed) that historically over history has been gaining double or more of the rate of inflation.
Question. Assuming UPS does fulfill their obligation, will survivor benefits for my wife remain intact. Or will that benefit, which is through Central States be cut as well? I would think that I bought an annuity and what I am paying is covering that but I'm no financial guy. My gut tells me she is going to get screwed when I pass and will feel the cuts.
oldngray
nowhere special
Exactly. Protected for now but with a stroke of a pen it could go away. Just like what happened to promises about healthcare.
Plus it pits members against each other depending on what group they are in. Young drivers have time to invest heavily and not count on any retirement plan. 2007 or earlier retirees get royally screwed. Everyone else is in the middle somewhere.
Catatonic
Nine Lives
Cashing out the same amount of savings for an annuity in 2006 would have got one twice the monthly payment as buying one now.
Great for someone retiring in 2006 but suck ass for now.
Catatonic
Nine Lives
Please think about this.
If you still don't get it, I'll explain when I get back from the doctor's office.
upschuck
Well-Known Member
Only if it is the next contract that it does increase.
oldngray
nowhere special
Yeah but the handwriting is on the wall. Only a question of when it happens.
Foamer Pyle
Well-Known Member
That's why you don't have a $2000 per month mortgage, and drive new cars every year, instead of saving some money. I am always amazed at how some folks can still manage to live pay check to paycheck on our income.
Not quite. In order to apply the Kline-Miller cuts, a plan must be in critical or endangered status with a funding insolvency in their future.
There are more than 10 million participants in multiemployer pension plans. According to the PBGC, about 10 percent of participants are in plans that are projected to run out of money, which is a requirement for any cuts to be enacted. In many of these plans, there are other tools available to improve their financial condition, such as eliminating service pensions or increasing retirement age eligibility. By law, plan trustees are required to take all reasonable measures to address their financial problems before submitting an application to reduce benefits.
Ms.PacMan
Well-Known Member
But you're forgetting about the last contract....they can now divert pension monies to fund Teamcare..... and with our aging population and more than 30,000 drivers eligible to retire.....it's only a matter of time before they bleed those funds dry also.
Takeback251
Well-Known Member
Also, funds in those endangered or critical status' must submit a recovery plan. Basically a "we know its friend'ed up, here's how we're gonna fix it."NE Plan has come up with a pretty good plan. If I'm not mistaken it's % funded has increased over the last few years.
Bubblehead
My Senior Picture
All ponzi schemes are eventually exposed due to a lack of new participants, leaving the latest inductees holding the bag of crap, excuses, and half truths.
realbrown1
Annoy a liberal today. Hit them with facts.
What I said was correct.
If you think markets only go up, I am here to tell you otherwise.
Similar threads
