YOU forgot to mention the misinformation spread by UPS. Please explain the two pension checks coming from UPS and Central States after a retiree reaches 65. My understanding is that one check from CS pays a portion of the years worked at UPS, and UPS pays the difference to total $3000 per month for a 30-and-out pension. However, the big problem with this is that if CS has to reduce its payment to a retiree for what ever reason (bankruptcy, the RED ZONE AMENDMENT), then UPS will "NOT" make up the difference.
I've already explained this one in so many ways. UPS is making a sincere effort to fix the pension mess. they can't fix every "if" that exists out there with CS. Thats where the insurance of the plan is supposed to kick in when the "if" happens.
UPS and the Teamsters both know that CS is going to default ( the
Maybe. thats what the six billion dollars and the new pension laws is supposed to prevent.
Teamsters would not allow UPS to control the pension if this was not the case).
ups will not control the pension in either scenario. this is really bad misinformation on your part.
As an example, say CS issues a check for $2000 and UPS pays $1000 for a total of $3000. When (not if) CS becomes insolvent, and they can only issue a pension check for $1000, and UPS is still giving a retiree $1000, your pension is now only $2000 per month. The Teamsters are spreading misinformation that the pension is guaranteed, when in actuality, it is NOT. There is no financial security. This contract needs a guarantee from UPS if CS can't pay their portion.
the guarantee comes from the pbgc not ups. UPS is not in the business of insuring large mult employer plans. your argument defies logic. why pay six billion dollars to get out of a plan that you now want them to guarantee.
Also, there has to be a cost of living increase built into the pension, or the pension money is worth less and less each passing year.
prioritize your needs first . getting out of the CS plan is a good long term solution for our people. paying the six billion is the short term solution to not only get out of the CS but to also ensure adequate funding for our people who will draw from it. thats the dollar amount the CS said they need to cover their liabilities to our people.
I'm not sure why you keep going off on a tangent instead of trying to understand what is really happening here.