UPS Warns of Potential $3.8 Billion Pension Cost

Discussion in 'Central States Pension Fund Discussion' started by UTR906, Apr 28, 2016.

  1. UTR906

    UTR906 "There Is No Armor Against Fate"

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  2. UTR906

    UTR906 "There Is No Armor Against Fate"

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    "The market is reacting to the size of the potential liability and concern about the unknown impact to future numbers," said David Vernon, an analyst at Sanford C. Bernstein & Co. "I think it's overdone. This is an issue that's going to be resolved in the courts regardless of what Treasury decides."

    From the Wall Street Journal:

    "For the first time, executives outlined potential costs related to the pension fund of some of its current and former employees. The Central States Pension Fund, as it is called, has asked the Treasury Department for approval to cut benefits, and a decision is expected by May 7. If the cuts are approved, the company said it may need to pay between $3.2 billion and $3.8 billion to cover certain current and former Teamster employees in the fund.

    UPS executives said the company would fight such an outcome.

    The company paid $6.1 billion to exit the Central States plan in 2007, establishing a new single-employer plan for about 45,000 employees and eliminating its contribution requirements to the multiemployer plan. UPS committed at the time to make up the difference for certain participants if the Central States plan benefits are reduced."
     
    Last edited: Apr 28, 2016
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  3. UTR906

    UTR906 "There Is No Armor Against Fate"

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    Kroger suing, UPS probably will sue.

    "They sowed the wind, and now, they are going to reap the whirlwind."
     
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  4. Crystal

    Crystal Well-Known Member

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    Doesn't Kline-Miller include a waiver excluding UPS from that contractual pension obligation?
     
  5. UTR906

    UTR906 "There Is No Armor Against Fate"

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    UPS wants Tier 2 particpants cut to the max before Tier 3 (UPS) is cut. Go to the following link
    Go to the following link:

    https://www.regulations.gov/#!documentDetail;D=TREAS-DO-2015-0009-1156
     
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  6. Crystal

    Crystal Well-Known Member

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    - See more at: http://www.pensionrights.org/take-a...ack-provisions-cromnibus#sthash.POKBhEcd.dpuf
     

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