I don't work at UPS but I am curious as to the pension situation both pre and post Central States. It looks like UPS made the correct call, by buying their way out of Central States, but what did they replace it with? If the company replaced Central States with a Single Employer Pension Fund, they obviously think that that is a sustainable solution but isn't a SEPF just a different Ponzi scheme, which will ultimately fail as the active versus retired worker ratio causes a negative outflow from the fund? Obviously, UPS management has put a lot of thought into changing the pension fund and how to sustain the new pension plan. The question is how is management going to cut and control expenses while keeping the union satisfied?
TForce | Pre and post Central States
- Thread starter Dracula
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Obviously you don't work for UPS Freight our pension is a single contributor plan not central states which is a multi contributory plan. Our plan is 100% insured and fully funded.
joes bar and grill
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A SEPF is sustainable, the biggest problem with MEPFs are the "orphans" companies that went out of business and did not pay their liabilities.
How do you know that the plan is fully funded?
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You get a letter every year it tells the funding amount in $ and % anything over 80% is considered fully funded.