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ABF | Statement from Judy about pension protection

SAC75

SAC75

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finance.yahoo.com

Statement from Judy R. McReynolds on Signing of HR1319, the American Rescue Plan Act of 2021

ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today released the following statement from Judy R. McReynolds, chairman, president and CEO, on the passage of HR1319, the American Rescue Plan Act of 2021, that includes significant financial assistance for multiemployer pension plans:
finance.yahoo.com



"Not only is this a significant step for the pension plans, but importantly this is encouraging news for the families of our ABF Freight Teamster drivers, dockworkers and retirees. The financial security of our employees in retirement is incredibly important to us, and we believe these grants to the union pension plans enable those retirees to receive the full, promised pension benefits they earned during their careers."
 
Who else remembers when ABF wanted to buy out of the MEPF (like UPS did) back around 2007 or 2008? If I remember correctly, the cost was going to be twice as much as they had anticipated (something like 1.1 billion dollars). This is just me thinking, but ABF may very well try to use this financial assistance to buy out of the MEPF again (at a greatly reduced cost because of assistance). Is this something ABF can use this financial assistance for with the Pension Relief Act? And if so, what does everyone think about this possibility. Good thing or bad thing.
 
Steward of the Rock said:
Who else remembers when ABF wanted to buy out of the MEPF (like UPS did) back around 2007 or 2008? If I remember correctly, the cost was going to be twice as much as they had anticipated (something like 1.1 billion dollars). This is just me thinking, but ABF may very well try to use this financial assistance to buy out of the MEPF again (at a greatly reduced cost because of assistance). Is this something ABF can use this financial assistance for with the Pension Relief Act? And if so, what does everyone think about this possibility. Good thing or bad thing.
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I don't know if it's true, but I heard they can't for 15 years...after that who knows...I was wondering the same thing myself..
 
ABF381 said:
I don't know if it's true, but I heard they can't for 15 years...
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I think it states that they cannot use the assistance to buy out for 15 years like you said. But, what would happen if ABF received the assistance for say 5 years or so, and then decided they no longer needed the assistance? Could they then stop receiving assistance and buy out of the MEPF without any penalty? After receiving this assistance for said five years or so, their obligation would be greatly reduced. I know this is one of those "what if" situations, but I was just curious what would stop them from doing so. Basically, I am being lazy and trying to avoid reading all 46 pages of the Butch Lewis Act to find the answer myself.
 
Steward of the Rock said:
I think it states that they cannot use the assistance to buy out for 15 years like you said. But, what would happen if ABF received the assistance for say 5 years or so, and then decided they no longer needed the assistance? Could they then stop receiving assistance and buy out of the MEPF without any penalty? After receiving this assistance for said five years or so, their obligation would be greatly reduced. I know this is one of those "what if" situations, but I was just curious what would stop them from doing so. Basically, I am being lazy and trying to avoid reading all 46 pages of the Butch Lewis Act to find the answer myself.
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I was under the impression it was the funds that got the assistance and not the contributing companies....I tried reading it....a lot of legalese....
 
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SAC75 said:
finance.yahoo.com

Statement from Judy R. McReynolds on Signing of HR1319, the American Rescue Plan Act of 2021

ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today released the following statement from Judy R. McReynolds, chairman, president and CEO, on the passage of HR1319, the American Rescue Plan Act of 2021, that includes significant financial assistance for multiemployer pension plans:
finance.yahoo.com



"Not only is this a significant step for the pension plans, but importantly this is encouraging news for the families of our ABF Freight Teamster drivers, dockworkers and retirees. The financial security of our employees in retirement is incredibly important to us, and we believe these grants to the union pension plans enable those retirees to receive the full, promised pension benefits they earned during their careers."
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She did everything in her power to get out of the pension. Now we’re one big happy family that the bill passed. Let’s see how much tho are about us come contact time....
 
GO40 said:
She did everything in her power to get out of the pension. Now we’re one big happy family that the bill passed. Let’s see how much tho are about us come contact time....
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My question is, does the company get any relief or do they still have to make the same contributions? I’m sure there’s going to be a legal fight over this question.
 
SAC75 said:
My question is, does the company get any relief or do they still have to make the same contributions? I’m sure there’s going to be a legal fight over this question.
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That is exactly what I am talking about. If this relief reduces the amount the companies are required to pay, what barriers are there to stop a company from buying out of their obligation to the fund and going solo? I have been told by a very reliable source that of the $342.00 paid weekly for our pension (Southern Region), only roughly $150.00 goes towards ABF employees. Maybe I am just being a little paranoid, but I would like to know what can and cannot be done with our pension.
 
ABF381 said:
I was under the impression it was the funds that got the assistance and not the contributing companies....I tried reading it....a lot if legalese....
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I understand it is assistance to the fund and not the employer, but with the contributions made on our behalf by ABF to the fund, only roughly 45% of it goes to ABF retirements. The rest goes to the so called "orphan" companies. So, now that this relief package has passed, does this mean that ABF will only be required to pay their obligation for ABF employees only (45% of what they currently pay)? If so, this is close to a $200 per week savings for ABF. At that rate, it would not take very many years to have enough money to buy out of their pension obligation. Again, this is just me thinking "what if".
 
Steward of the Rock said:
I understand it is assistance to the fund and not the employer, but with the contributions made on our behalf by ABF to the fund, only roughly 45% of it goes to ABF retirements. The rest goes to the so called "orphan" companies. So, now that this relief package has passed, does this mean that ABF will only be required to pay their obligation for ABF employees only (45% of what they currently pay)? If so, this is close to a $200 per week savings for ABF. At that rate, it would not take very many years to have enough money to buy out of their pension obligation. Again, this is just me thinking "what if".
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The slate should start from scratch, each employer should be responsible for their employees and their employees only. This way some may think twice before voting their pension away....
 
Steward of the Rock said:
I understand it is assistance to the fund and not the employer, but with the contributions made on our behalf by ABF to the fund, only roughly 45% of it goes to ABF retirements. The rest goes to the so called "orphan" companies. So, now that this relief package has passed, does this mean that ABF will only be required to pay their obligation for ABF employees only (45% of what they currently pay)? If so, this is close to a $200 per week savings for ABF. At that rate, it would not take very many years to have enough money to buy out of their pension obligation. Again, this is just me thinking "what if".
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I see your point...but if they could wouldn't that need to be negotiated?
 
ABF381 said:
I see your point...but if they could wouldn't that need to be negotiated?
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Not sure about that. I think that when UPS bought out of the pension years ago that the buy out itself did not have to be negotiated so long as the requirements to do so were met. The direction of their pension plan from that day forward did however have to be negotiated and voted on. At least I think that is how it went down. But I am getting older and forgetful. And that was many years ago.
 
Steward of the Rock said:
Not sure about that. I think that when UPS bought out of the pension years ago that the buy out itself did not have to be negotiated so long as the requirements to do so were met. The direction of their pension plan from that day forward did however have to be negotiated and voted on. At least I think that is how it went down. But I am getting older and forgetful. And that was many years ago.
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UPS should of never been allowed to buy out of the fund they got a great deal only paid around 7yrs of pension payments to get out then the money was gambled in the stock market poof it's gone.
 
Steward of the Rock said:
And you have Consolidated, Churchhill, Jones Truck Lines, Preston, Ryder Pie, etc., etc., all go out of business and never pay into the pension again. I have said it before, DEREGULATION should have never happened. But that is just my opinion.
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The other thing with that is bankruptcy laws puts the pension funds in line last....why does every company come before the workers of the company going out of business?.....another example of the government screwing the worker....
 
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