Dreaded Pension Funding Level Letter

[Coldworld]

I think the biggest problem with our pensions is not the way they are invested, but the ratio of retirees to workers supporting them. We had our 1st retiree in 1995 in our building with 60 drivers. Now we have 30 retirees and only 50 drivers. To much coming out and not enough going in. Couple this with the same problems in Social Security and it makes for a grim outlook. How much can a guy realistically salt away in a 401K while also supporting a family.

Almost makes sticking all retirement funds into a basic savings account sound like a good thing......

 

[Coldworld]

The plans are mostly composed of Teamster bargaining unit employees, with a few select others included, like the employees and trustees of the pension funds themselves. The NY Local 804 plan also has some UPS' Machinists Union (IAM) employees in it, and one of it's trustees is a Machinists Union official.

Trustees are legally bound to act in the best interest of plan participants and beneficiaries (no, really, I'm not kidding) so they would probably be in violation of their "fiduciary duty" if a better-funded fund agreed to merge with a poorly-funded fund. One way or another, if the funding levels are too different, the participants of the better-funded fund will loose out in the deal.

UPS can't take over the funds. The most UPS can do is withdraw from the funds (with members' approval), as UPS did from Central States, and try to do things better from that point foreward in a new fund.

Since there are so many companies out of business, wont there be a time where the funds become fairy stable, especially when the stock market climbs again. I wonder how many of these companies actually went out of business because of ups......

 

[SWORDFISH]

I am grateful to be in the Western Conference. We were down to 84% last year when the market tanked (which is still considered healthy) but the fund has rebounded up to 89%. I'm in PEER 80 and I started at age 20.....so I will be able to get out at age 50 on around $4800 a month.

Amen to the west. Im in about the same boat as you except I started a bit earlier and plan to leave around 45.

 

[Old International]

Just be thankful you aren't in Central States. Even with the UPS buyout, the plan is in bad shape, and it looks like I am gonna get shafted on 24 of my years I was in that plan. SSI is gone, my pension is tanking, bout the only thing I have left are my stocks and 401k. And if Yellow goes under, it will really be over. Lord I may never retire......

 

[Coldworld]

Amen to the west. Im in about the same boat as you except I started a bit earlier and plan to leave around 45.

ummm 45, please explain

 

[SWORDFISH]

ummm 45, please explain

LOL. 25 years of service at any age is eligible for retirement. I started UPS just out of high school. Its the smallest amount but if you manage your finances well it wont matter.

 

[UpstateNYUPSer(Ret)]

LOL. 25 years of service at any age is eligible for retirement. I started UPS just out of high school. Its the smallest amount but if you manage your finances well it wont matter.

We also have this option but I am afraid that it may no longer be available when I get my 25 yrs in. As it stands now I would lose between 1/3 to 1/2 if I retired 5 yrs early.

 

[Coldworld]

LOL. 25 years of service at any age is eligible for retirement. I started UPS just out of high school. Its the smallest amount but if you manage your finances well it wont matter.

Is this in your local contract or in western conference in general....if you had part time years counted toward that then the amount will be smaller, but remember you have been receiving a higher percentage into those funds than someone 30 years ago and from what Ive been told its considerable. Now inflation will eat into that, but if you have your house paid off or a big chunk gone this is totally doiable even in the more expensive western part of the country

 

[Coldworld]

We also have this option but I am afraid that it may no longer be available when I get my 25 yrs in. As it stands now I would lose between 1/3 to 1/2 if I retired 5 yrs early.

This is where getting into feeders would be a lifesaver......

 

[UpstateNYUPSer(Ret)]

This is where getting into feeders would be a lifesaver......

...in what way?

 

[1989]

sober, were you part time at ups...if so how do those part time years play out in the western conference??? So I know that ups has MANY different areas with different pension plans. Will there ever be a day where ups could combine all of these and pull money from a healthy plan to balance out a weak one...or is this impossible since ups is only one company in the plan? Does the govt have any say in this???

You can get an hours statement from the pension plan that will show what pt years, if any, are eligible under peer 80. You still get credit for all hours into the plan, but some years you may not have enough hours for peer 80.

 

[SWORDFISH]

Is this in your local contract or in western conference in general....if you had part time years counted toward that then the amount will be smaller, but remember you have been receiving a higher percentage into those funds than someone 30 years ago and from what Ive been told its considerable. Now inflation will eat into that, but if you have your house paid off or a big chunk gone this is totally doiable even in the more expensive western part of the country

That langauge is in the National Master (meaning for all UPSers). article 34 sec.1 I-6

 

[Coldworld]

...in what way?

I wonder how many drivers went to feeder to get 5-10 years under belt for retirement then stay longer because of less wear and tear on body, not to mention the whole mental sanity.

 

[Coldworld]

That langauge is in the National Master (meaning for all UPSers). article 34 sec.1 I-6

will have to check this out..if thats the case makes you wonder why some stay for 40 years I dont even think management should be put through 40 years of hell.

 

[1989]

That langauge is in the National Master (meaning for all UPSers). article 34 sec.1 I-6

If this is not in the western states pension rules, good luck receiving any benefits.

 

[1989]

will have to check this out..if thats the case makes you wonder why some stay for 40 years I dont even think management should be put through 40 years of hell.

If this is true, you probably only receive a 50% pension.

 

[SWORDFISH]

The amount you recieve varies at 25 years b4 age 57, after 57, 30 years of service and 35 years of service. That is why people stay longer

 

[ups79]

did upstate give you all those negative reps?

 

[SWORDFISH]

did upstate give you all those negative reps?

Who are you asking? Their are alot of you's here.

 

[TechGrrl]

My question is, WHY? Are these pension managers amateurs? Are they not nimble enough to move money as breakdowns occur? Do they not valuate companies and initial assets in these funds to make decisions going forward? Western States is better than many, but still get no better than a D grade. Granted they are better than government, but arn't these people suppose to be professionals?

Dude, weren't you paying attention when the market dropped to around 6800 from it's high of 14,000? NO ONE was going to beat that, no matter how they moved money around.....unless you want to play with Bernie Madoff and his ilk. Notice that the Fed is like paying zero percent interest on CD's, so if you were prescient enough to sell all your stocks at 14,000, there was effectively NO APPRECIATION on all that cash while it was sitting around waiting for the market to bottom, and then start back up again....and market timing is not a winning strategy for anyone....
Note also that pension funds hold SO MUCH STOCK that when they sell, they move the market. So they can't just dump it all without really setting off a plunge all by themselves.