Hey Cole, my computer is still slow as crap. Just a quick note. My nephew that went to USMC boot camp on June 11 is still there. LOL I shouldn't laugh. Half way through he caught pneumonia. That set him back about 3 weeks. Than he got Bronchitis. Again another 3 weeks. My brother says he might graduate Nov 17. Like I said before he is a very skinny, but brainy kid. The Corp has spent a fortune on those high protein drinks(3,000 to 4,000 calories, LMAO). As you know the Corp has a very tight fiscal budget. Point is they just can't shove enough calories in him. He's also a very nervous cat and that adds to his calorie burn up.
Ok, YES on the contract. Again, First the pension. As we all know that was the number one item. There are 3 things that will affect or effect your MEP/SEP pension.
1) "The market". I believe/know just by looking at my 401k that is so. I will give you some of my personal 401k info. Just to show you. My balance was $98,000 at the end of 06. My CONTRIBUTIONS to my fund is roughly $320 a week. I give the max amount of 25% of my gross(yearly federal max is $15,400). In comparasion the UPS contributions to my Teamsters, Joint council 83 Mep of Virginia is $273.60 a week. I thought I would just throw that out there. Ok, this could be long. LOL In a nut shell. By June I had $117,000 - $7,700(contributions) equals roughly $12,000 in earnings. Yippeee. Not so fast. I believe in August or Sept the bottom fell out. My balance dropped to $102,000. Now I was in the RED. Ugggghhhh. LMAO No put intended Red. Folks, it hurts to lose money. It could drive you just plain crazy. Remember, Mentall Illness and being in locked down aint no fun. RO(the padded)FL LMAO. Ok, now for a little mathmatics. Get your BEANS out. . For you CS folks it might be a little less beans( lettuce). Aug/sept balance $102,000. Yearly Beginning balance $98,000. CONTRIBUTIONS as of Sept was roughly $12,000. $98,000 + $12,000 = $110,000. $110,000 - $102,000 = $8,000 in the Red . I m not finished. It did jump back up only to drop back down. Last I looked I was 3 grand down. Im just hoping to break even by the end of the year.
Well folks do you see my point. My 401k is just like your/my MEP only on a smaller scale. Millions and even BILLIONS are lost on any givin day at the market. This is where your pension monies are placed. My $320 a week contribution is puny when it comes to the market. I could easily lose 3 months of hard earned contribuitions to a drop of lets say 200 to 300 points in the market. Believe it or not. The market has about a 7% return over a 30 year period. A home in a good area(he he) might have a 5% return or more. The market. It could be heaven or it could be hell. The market. IMO has more power than the CONTRIBUTIONS. More contributions doesn't always equal more pension monies.
2) "The number of people drawing(retiree's) verse's the number of people putting in(workers). That will affect/effect your Mep or Sep plan. CS example. Those of you who vote No are just being self centered and shelfish. We are all in a MEP or SEP of some kind. UPS can only afford to bail out one fund at a time. This CS MEP was a big fund created by our great Teamster founder James Hoffa Sr. The CS UPS FT workers had very little or no say at all. The individual put in his application in at UPS, just like you and I. We knew little or nothing about the pension process. In time we were more informed. Again, I say have we've all been duped? Promises that were made by the Teamsters. I ask those that want to vote "NO" to our UPS brothers and sisters at Cs. How is your fund doing? Is it about to go broke? Borderline? CS consisted of 44,000 UPS workers. Hey you "NO" voters it might be your fund that needs help the next time. Think ahead. Think out of the Box. The fact is you might need their vote the next time around. United we stand. Divided we fall. Right Red. The reponse I hear now from most "no" voters in my center is what about us. Well, I tell them. The CS fund was the worst in the country. Ours is about 76% funded. Would it be smart to start from the worst to the least worst. UPS has to take it one fund at a time. UPS can't do it all in one contract. Remember UPSers, the future its not a given. I mean growth. UPS is not Superman. Strategy. Trying to predict the future can be tricky. So far it s all been growth for the last 100 years. INCREASES, no matter how great or small. We've always had increases. The glasss is half full. Not half empty. Look at the positives. It could make you live to a 100.
3) Last but not least. Contributions. It does help. In reference to the CS fund. The CS fund had great UPS weekly pension contributions. The problem was it wasn't enough to sustain all the non UPS members of the CS fund who's company had gone out of business. Remeber, only 40 cents to every dollar went to the CS Upsers.
In closing, the CS fund had only 1 out of the 3 listed above. The one they had was #3 Contributions, will at least on UPS's part. They had the one we cry about the most. MORE CONTRIBUTIONS. That is not always a sure fix for the MEP/SEP pension crisis.