ABF | Food For Thought

Kennesaw Kid

TB Legend
Super Moderator
PREMIUM
Credits
506
Please correct me if I am wrong.....

If UPS and ABF go to a single employer pension plan, ERISA will allow them to combine Social Security Payments with their pension payments at age 65. Thus reducing UPS' and ABF's liability by that amount.

In short, employees under a single employer pension plan will not get both a UPS pension and Social Security.

It Will save UPS Billions.
 
Just curious where you got your info. I did a quick search, and couldn't find any mention of this... Please let me know where I can read up on it... Thanks
 
Please correct me if I am wrong.....

If UPS and ABF go to a single employer pension plan, ERISA will allow them to combine Social Security Payments with their pension payments at age 65. Thus reducing UPS' and ABF's liability by that amount.

In short, employees under a single employer pension plan will not get both a UPS pension and Social Security.

It Will save UPS Billions.

In short, employees under a single employer pension plan will not get both a UPS pension and Social Security.
i think you are wrong there brother
i cannot see how anyone can be denied social security in this situation
however i do agree with the notion that the employer's liability will be reduced if the plan fails at some point thus lowering the set amount the retiree receives when retiring
but affecting SS payments i just can't see that occurring
 
any company at this point who withdraws from a multi employer fund and pays a withdrawal liability penalty stands to save mucho money "in the long run" as that withdrawal liability will inevitably increase over time especially as other employers in the fund either withdraw or go out of business
the burden rests with those that are left
ups and abf stand to save from that perspective if successful in their withdrawal bid
if yrc stays in all that is required from them is the amount they contribute as per the contract
if their withdrawal liability rises as a result it will tend to keep them in the fund despite any potential future "savings" as the withdrawal amount may exponentially increase beyond any possible future withdrawal attempt
remember they are only liable if they withdraw
so their strategy seems to be presently, stay in the fund and withdraw when they simply decide to go out of business and at that point no withdrawal liability penalty is due
 
You will not be denied SS, however, UPS or whomever will only have to make the difference between SS and the agreed pension benefit. Example: You are promised $10 per month for retirement. Social Security pays you $6, if allowed, UPS will only have to make up the dif, of $4. Instead of what could be $16 as it is now.
These employers have other motives. Theres more here than what meets the eye.
 
Top