What's new

Yellow | Central States Pension In RED ZONE

mustache

mustache

TB Legend
Credits
0
Just read an article in Team Work that says Central States Pension (after the 6.1 Billion that UPS paid to buy out of the Central States Pension Fund ) is still in The Red Zone. The article also said that being in the Red Zone is Better then the Yellow Zone, not shure I understand any of this, HELP PLEASE!!!!!!
 
Hey Mustache, Unfortunately there is not a lot you nor I can do about the situation. My question si so why worry about it. I realize that you are retired and I have bunch of years to go. I just take thing a day at a time and live the same way too! Just some advice!:smilie_132:
 
They probably figure if were dumb enough 2 vote in such a bullshit contract that were dumb enough 2 believe that the red zone is better than the yellow zone!! Get ready boys here comes another screwin!!!!!!!!
 
These ratings are set up by the government not the union, and they dictate what the government can do with the pension fund based on the rating. I don't know why red would be better than the next level up but knowing the current administration it doesn't surprise me.
 
DEJA VU? Now that the best contract ever has been ratified and your bennies have been protected? Hang on fellows.:hide:
 
wolf said:
DEJA VU? Now that the best contract ever has been ratified and your bennies have been protected? Hang on fellows.:hide:
Click to expand...
Same Old S happened 5 years ago. Wait till this Fall when CS drops the big hammer and your benefits are readjusted.
I've accepted the fact that in 12 years I won't see squat, I sleep good at night
 
Thought I read a couple times that, after the Big disaster years ago, that that fund has steadily started to make a comeback. Not in great steps, but little by little.
 
Central States Fund

Do you think that sombody new needs to manage this fund ?
SOS since as far back as I can remember. You would also think the people on the union side would push for a better fund manager. After all everytime you try to sign up new members the Central States Fund comes up.
Glad I am in the west but feel sorry for the people I have worked with for years when I see what they get for the same amount of service.
 
JPS said:
Do you think that sombody new needs to manage this fund ?
SOS since as far back as I can remember. You would also think the people on the union side would push for a better fund manager. After all everytime you try to sign up new members the Central States Fund comes up.
Glad I am in the west but feel sorry for the people I have worked with for years when I see what they get for the same amount of service.
Click to expand...

In the East we sued our fund for mismanagement. And won. More for how it went about paying for the people who managed our funds.
 
In a bulletin from Thomas Nyhan (Executive Director of Central States) on Oct. 4, 2007 he stated:"Our actuaries' estimate that after the transfer of liabilities and the UPS payment. The Pension Fund's funding ratio as of Jan. 1, 2008 should exceed 70% and may reach 75% if we meet our actuarial assumptions" Obviously something happened big time between Oct. and March. The TeamWork magazine that just came out hinted what is coming. The accrual rate will decrease from 1%. How far it will go down, I do not know. The whole problem with Central States is that every day people work the accrued liabilities grow larger and larger. The only way to stop this accrual is to stop the accrual rate. This can only be done by reducing it to 0%. Another interesting thing he said in the Teamwork magazine was " Because the Pension Fund will no longer receive the future contributions from UPS, future investment returns will ultimately decide whether this arrangement turns out to be positive or negative". When Central States receive the UPS check in December they started to make investment changes. The money is now going into fixed income accounts and index funds. This will save fees from turning over the stocks as they once did. But I believe, and this is only my opinion, that they are positioning Central States to die a slow death. It is stated in the law that when a pension fund reaches the point of no return, the Trustees are obligated to keep the Fund viable for as long as possible. How long will it last, I do not know, and obviously Mr. Nyhan does not either!
 
I think we should use all the money in the various pension funds to buy YRCW. Then we can make the management responsible to the owners and the employees.
 
This was explained to me by our local and by me reading the TeamWork magazine.

It is in the fund's advantage to be in the "Red Zone" VS the "Yellow Zone".

The red zone will allow the fund to improve it's funded ratio over a 10 year period. The yellow zone must be done within a strict 10 year period, which would require unreasonable contribution rate adjustments or benefit decreases. So in this case red is better than yellow.

I would suggest contacting your local union or CSPF directly.:1036316054: DS.
 
So when they say "Green Zone" I'll know I'm SOL

The changes to Central States in 2003 were attributed to losses in investments prior. That tidbit scares me. During that period my investments held their own while Centrals went south. Last year my conservative investmentss were flat. This doesn't bode well if past events repeat themselves. i can't speak for the pension part but the health side has gone downhill big time. Screwed up claims and just plain confusion. I'm just lucky my wife now qualifies for free health at her job. Our plan blows compares to hers and I only really use mine for dental and vision. A 1/3 of guys are retiring at my barn shortly. If this is happening all over the fund will be dry long before I get to the well.
 
You must log in or register to reply here.
Top