Bigger cuts coming.

Discussion in 'Central States Pension Fund Discussion' started by superstar, May 14, 2016.

  1. SAC75

    SAC75 Well-Known Member

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    I work for ABF. Why should we get cut? Same reason. We all take the hit.
     
  2. Crystal

    Crystal Well-Known Member

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    Does anyone know if there were any companies other than UPS that withdrew from CSPF and paid it's underfunded pension liability?
     
  3. Bubba Gump

    Bubba Gump Active Member

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    ESP when you see 135,000 dollars you see 4 years of pension payments. what I see is the 1,259,712 dollars it becomes after 30 years at 8%
    that is a 100,776 dollar a year pension at 8% without touching the principle. there will be no bailout only deeper cuts. multi employer funds are
    a distant third in priorities behind social security and public pensions. as a tier 3 with less than 20 years in cspf {27 years as a teamster in 2008}
    my pension was cut 69% I'm glad you don't mind ups paying my pension for a third time!
     
  4. Bubba Gump

    Bubba Gump Active Member

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    at this time you should be thinking more about how long abf can stay in business subsidizing other companies pensioners.
    having a regular paycheck is better than having a 110% pension as an orphan or no pension at all if the cspf goes bankrupt and wipes out the pbgc
     
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  5. Bubba Gump

    Bubba Gump Active Member

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    I think you are missing something ESP you didn't take into consideration that the contributions coming in are for investing into the contributors future pension. they are not for spending today. why else would anybody stay in?
     
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  6. BIG R GUY

    BIG R GUY Part time Coop Dispatch driver

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    What about all the companies that filed bankruptcy back 20 plus years ago that owed the fund millions? The union let many not pay for periods of time in hopes they would straighten out their finances. I remember reading that PIE owed like 31 million, which does not sound like a lot now, but was then. You have to remember, I am not just talking about trucking companies that went bankrupt . There were warehouse, grocery, and many small construction and redi mix outfits in this fund. I know of 2 right here where I live that are still in business, and people that work there have told me CSPF told them it would in both cases cost them 2 million or more to withdraw. Neither can afford it. I would bet somewhere that CS has a list of companies and how much was owed at the time they folded. Probably would floor you. UPS seemed to be the only ones who saw this coming years ago, and constantly said about .60 cents of every dollar they paid in went to people who never worked for them.
     
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  7. ESP

    ESP Well-Known Member

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    You could be right, I am missing something. However the fund is so low, the investing is so bad and the fund was set up to take care of those companies that went broke and the income is to provide for all. Having said that my pension being paid in was used for companies that went broke before mine did. I hate it that you are being cut 69 percent, no one should have to have that size of a cut. As you know the only way to make it last longer as the new law states. Is to cut, that is why I am fighting for equal cuts across the board. Letters to your Congressmen and women and the Senators and representatives will do far more than you imagine. Create a plan to save the fund and send it to Central States and Ken Feinburg of the Treasury Dept. I do not totally disagree with you, If I was in your shoes I would be peeing and moaning just as I was at first in my own shoes. I also believe that the fund is toast no matter what is done because no one can see a need to help us. However we can spend billions of dollars fighting about transgender bathrooms. I, as silly and stupid as I am, believe you go to the bathroom of which you have the organs for. Then again I am always taking a different view on things. Thanks for your time and welcome to the boards.
     
  8. G_Hendrix

    G_Hendrix Active Member

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    Multi employer? ????
     
  9. BIG R GUY

    BIG R GUY Part time Coop Dispatch driver

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    Sure . Look back 25 years or more the union ltl's that closed. There is a long list out there.
     
  10. ESP

    ESP Well-Known Member

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    The Past is the Past, today is the Future. Really Guys and Gals, one of us out there has the brain power to come up with a plan to save the plan. Put it on paper and discuss it and cuss it and sent it in. Move Congress to at least address it in a real political fashion. You just never know what will come to us next. Just be ready for the cuts again. Then again you may need the money you set aside when the fund fails. God speed.
     
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  11. BaBaLoo

    BaBaLoo Delusional

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    ESP I am sending this suggestion to you because of the legwork you have already done on this issue. You are currently plugged in and could contact the appropriate people if you think that the plan I am proposing has any merit. The CSPF is currently under review by the General Accounting Office (GAO). They are looking into the fund's management that was directed by the Federal Government to be placed into the hands of Wall Street investment firms. Goldman Sachs and Northern Trust in particular. I have seen estimates that the fund lost over 11 billion dollars under their oversight during the financial collapse of 2008. Coincidentally, this is the same amount that Mr. Nyhan says the fund currently needs to be stabilized. Please note that the following suggestions only apply to the CSPF and its unique position of being placed under federal oversight. It would not address MEPRA and other funds that are in financial trouble.

    1. The CSPF is in financial trouble and some action is necessary to stabilize the fund.

    2. The Federal Government Has played a unique role by placing CSPF under oversight and allowing the funds to be managed by Wall Street investment firms.

    3. The Federal Government has bailed out these financial institutions under the TARP program.

    4. Each current retiree will be guaranteed 110% of the PBGC minimum, currently $12,780 per year. Any retiree that is earning less than this amount will not be affected by this plan. Their payments would remain at the level they are currently receiving. This should address the retiree who falls under the 75 - 80 years old and over. Most do not currently reach the $12,780 yearly threshold.

    5. Any amount a current retiree receives over the $!2,780 amount would be subject to a cut. For example if a monthly benefit of $3000 was being paid, it would accumulate to a yearly benefit of $36,000. Subtracting the $12,780 guarantee would leave $23,320 available to be cut.

    6. A straight across the board percentage cut would be applied to the remaining balance. The numbers would need to be worked out to make sure that the fund stays viable. For the sake of this example we will use 30%. The amount of the cut of the $23,320 would be app. $7000. Deduct this from $36,000 And the new yearly benefit would be $29,000. This would then amount to a monthly benefit of $2417 before taxes.

    7. Future retirees, those who are still working and paying into the fund, would have their pension capped a certain amount if they have enough contributory credits. One example would be $24,000 per year or $2000 per month.

    8. Current retirees doe not have the ability to earn more pension benefits. Going forward the plan would have to be phased in by age groups.62- 57 no adjustments. 57 -50 The new cap in place. And so on.This will give adequate time for those who are more than ten years away from retirement to adjust. Current retirees and those who are less than five years away do not have that luxury.

    9. Part of the payments currently being made on behalf of active workers could be set aside to be placed into individual 401k accounts. This will allow them to be more actively involved in their retirement financial security.

    10. There are a couple of ways that this could be paid for depending on the results of the GAO investigation. Wall Street firms that were directly involved with the fund's oversight could reimburse the fund for the 11 billion dollars that are needed. If that is not feasible the Federal Government could loan the 11 billion dollars to the fund and the bankers could repay the government at a nominal interest rate. Or the government could impose a small fee on daily internet transactions, say one tenth of one cent. The proceeds would go towards the retirement of the loan and would end once the loan had been paid in full.


    These are suggested numbers. I am not an actuarial accountant. But this could be a starting point. We all know that something needs to be done. Under this plan their would be shared sacrifice. But I believe the cuts would not be so drastic that an individual who is already retired should be able to meet their daily needs. Thank you for all that you have done in regards to this matter. Good luck and God Bless!
     
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  12. ESP

    ESP Well-Known Member

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    Good Job and God bless you as well. I can and will get this and other ideas off to the right people to view. Yours is very detailed and has many good points to consider. I am aware that none of us have the exact numbers to come up with a perfect plan. No matter what happens, I do believe that some of the Senators I have been in contact with would want some fresh thoughts to this matter. For anyone who does not want to put your thoughts on an open forum, you can PM me. Remember this, there are no bad ideas. Thanks again BaBaLoo.
     
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  13. Freightmaster1

    Freightmaster1 Well-Known Member

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    QUOTE="superstar, post: 1051766, member: 1306"]Talked to someone on Thursday. ( please guys this is not a truckdriver, nor did I hear it on the CB or in the breakroom ) In roughly 14 days from this past Thursday CS will float a new plan. This man told me if you think people were upset with this rejected one he said they'll "be howling" when they see this one. The Treasury wants the new plans based on 6.25% interest, not 7.5 to 8.5. Before you accuse me of being a bullshitter this individual also heads a another fund so this is fact not BS.
    The clock now resets at another 225 days for the application process. He told me that they are bothered by the fact that the Treasury is forcing their hand as to where their investments have to be allocated ( or rather the investments must be much more coservative. ) While historically this fund has averaged pretty close to 8% (excluding the recession) he objects to the Treasury now telling them to be conservative. They also now (not just CS) have to rework the numbers for bigger cuts seeing they are forced to working with a 6.25% return.
    The problems some of the fund managers across the nation are having with the rejection is not that it was rejected but that through the ongoing process with CS the Treasury didn't work with CS so that the final application was accepted. By rejecting it with little guidance now all the funds working on applications have to go back and start over again. -----Bigger cuts-----.
    He says there is one thing to hope for when these bigger cuts are presented - that all the politicians that were quick to jump on board and say to reject the CS cuts had better come to the table and start talking about new funding and revenue sources other than just offering lip service.[

    I guess your "source" was wrong?
    http://www.tdu.org/central_states_director_says_no_resubmission

    :poster oops:
     
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  14. Kennesaw Kid

    Kennesaw Kid Super Moderator Staff Member

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    WTH is your source Superstar? .......he missed that one by a mile! CSPF will NOT be filing another rescue plan per Tom Nyhan....KK
     
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  15. Kennesaw Kid

    Kennesaw Kid Super Moderator Staff Member

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    Waste Management. ....
     
  16. flat top

    flat top Active Member

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    This guy has made other predictions that haven't panned out.
    .
     
  17. SAC75

    SAC75 Well-Known Member

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    That tdu article was quoting the Central States posting on the Central States Rescue Plan website. Hope your source is correct. I'm sure Central States has been getting slammed with nasty phone calls, letters, and e-mails so maybe the pressure got the best of them. Lets hope so.
     
  18. superstar

    superstar Member

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    Hey Jim let me tell you something, AS OF THE MOMENT WE TALKED --THAT WAS THE PLAN!!!!!!
    Read carefully - IT SHOULD BE OBVIOUS WHO I TALKED TO.
    I'll tell you one thing right now. That will be the last time I tell you guys anything I am told that could effect your life. The few guys that ever tell you people the truth and the reality of the situation you rather gloat and throw water on them. I guess Ian Gold was a bullshitter too huh? Gordon Sweeton? He's another bullshitter too right?
    You guys can kiss my ass.
     
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  19. wolf

    wolf Well-Known Member

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    Just so ya know I appreciated the news, things change, no gloating here just glad they changed.
     
  20. Bubba Gump

    Bubba Gump Active Member

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    It is all political theater. Every party involved is trying to make as much political hay as they can. Did you notice that they are not taking shots at each other. That is because the left and the right are all on the same sheet of music when it comes to mpra. The cuts will come and they will be bigger
     

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