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ABF | Pension Solution?

2631 said:
I don't think that any of us understands the complex economics of the MEPF.... If the companies have an equal number of trustees on the pension fund board, then how can some funds be underfunded by so much.

What I can't figure out is why, if a pension fund is 75-80% funded, a board of trustees would vote to increase the yearly pension credit....Every dollar they raise the credit means more of an unfunded liability the company has. Why would the company's trustees who work for UPS,YRC & ABF etc. approve a raise unless it is in the best interests of their companies?

The trustees & the plan administrators have a fiduciary responsibility to ensure that the fund stays healthy......So just maybe a pension plan being underfunder isn't all that bad.
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Underfunding is never good you cannot run in the REDand stay solvent forever..Simple math says you can't take more than goes in without running out eventually....:hide:
 
tramp1155 said:
Underfunding is never good you cannot run in the REDand stay solvent forever..Simple math says you can't take more than goes in without running out eventually....:hide:
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It just can't be that simple.The government has enacted so many regulations that the fund administrators have to comply with and yet we still have some pension plans that are underfunded.

Taft-Hartley, Landrum-Griffin, ERISA & now this PBGC all have regulations that were supposed to protect workers & their pensions.

I don't think that the CSPF is in as bad a shape as UPS & ABF would have us believe.
 
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