Yellow | Central States Pension Rehab Plan
- Thread starter Jeff
- Start date
Freightmaster1
TB Legend
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- 609
Wake Up Central States Pension Participants!
Thanks for posting this Jeff! I would encourage all Central States participants who work for YRCW companies to contact the fund and find out what your "contribution based pension at age 65" amount is. From what I've been told, this amount is the only one that is protect by ERISA laws, and this is the amount that Central States might cut you back to if YRCW ends up in the "Default Schedule" or a "Rehabilitation Plan Withdrawal" occurs if we vote to get out of the fund!
I encourage all participants to closely review the "Central States Pension Plan Rehabilitation Plan" that Jeff has posted, and to be aware of the penalties that the fund could implement under the "Rehabilitation Plan"! Many of us are planning on getting "adjustable benefits" of $2500 or $3000 a month with 25 or 30 years of credit, but could have these benefits cut back to a much smaller amount even if you've already earned them! If you think you're going to get $3000 a month at age 60, and then YRCW triggers the default schedule, or cons the membership into pulling out of the fund, then your $3000 could get cut back to whatever your "contribution based pension" is at age 65, and then you would take a 30% (5 years x 6% reduction for each year younger than age 65). Makes it pretty hard to do any "retirement planning" doesn't it?!
I know it's confusing as hell, and each participant's case is different, so I encourage you once again to call the fund asap and ask for a letter stating what your pension is right now, what your contribution based pension is at age 65, and what steps the fund could take to cut your benefit way back! Right now, it seems like the safest bet is to plan on the lowest amount (the contribution based benefit at age 65 with a 6% cut for each year under 65), and then hope that it doesn't get to that point.
One guy at the fund told me that if YRCW goes bankrupt and shuts down, the 'Default Schedule" or "Rehabilitation Plan Withdrawal" WILL NOT occur, but that in the long run, the plan would be less solvent. The plan could someday be forced into the PBGC and the benefits of all participants (active & retired) would then be cut back to only about $13,000 a year! But then, that's another story that may or may not happen in the future...depending on pending "pension reform legislation" in Congress right now!
Thanks for posting this Jeff! I would encourage all Central States participants who work for YRCW companies to contact the fund and find out what your "contribution based pension at age 65" amount is. From what I've been told, this amount is the only one that is protect by ERISA laws, and this is the amount that Central States might cut you back to if YRCW ends up in the "Default Schedule" or a "Rehabilitation Plan Withdrawal" occurs if we vote to get out of the fund!
I encourage all participants to closely review the "Central States Pension Plan Rehabilitation Plan" that Jeff has posted, and to be aware of the penalties that the fund could implement under the "Rehabilitation Plan"! Many of us are planning on getting "adjustable benefits" of $2500 or $3000 a month with 25 or 30 years of credit, but could have these benefits cut back to a much smaller amount even if you've already earned them! If you think you're going to get $3000 a month at age 60, and then YRCW triggers the default schedule, or cons the membership into pulling out of the fund, then your $3000 could get cut back to whatever your "contribution based pension" is at age 65, and then you would take a 30% (5 years x 6% reduction for each year younger than age 65). Makes it pretty hard to do any "retirement planning" doesn't it?!
I know it's confusing as hell, and each participant's case is different, so I encourage you once again to call the fund asap and ask for a letter stating what your pension is right now, what your contribution based pension is at age 65, and what steps the fund could take to cut your benefit way back! Right now, it seems like the safest bet is to plan on the lowest amount (the contribution based benefit at age 65 with a 6% cut for each year under 65), and then hope that it doesn't get to that point.
One guy at the fund told me that if YRCW goes bankrupt and shuts down, the 'Default Schedule" or "Rehabilitation Plan Withdrawal" WILL NOT occur, but that in the long run, the plan would be less solvent. The plan could someday be forced into the PBGC and the benefits of all participants (active & retired) would then be cut back to only about $13,000 a year! But then, that's another story that may or may not happen in the future...depending on pending "pension reform legislation" in Congress right now!