ABF | What will happen with our pensions
- Thread starter truckchick1
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Pension
I would speculate that if another freight line goes belly up the funds will be declared insolvent & be managed by the PGB. The letter that we all get states that they try to provide $35.75 per month X number of years service on a multi employer pension fund.
I think that a surviving carrier, (if any survive), would be assessed an amount that the PGB calculates to be their obligation tothe fund(s).
I think that the surviving carrier would be required to set up a fund (401K or something comparable) for their employees. That is what ABF tried to do before this last contract.
It isn't pretty but that is reality. I hope for better but am prepared for whatever happens.
I would speculate that if another freight line goes belly up the funds will be declared insolvent & be managed by the PGB. The letter that we all get states that they try to provide $35.75 per month X number of years service on a multi employer pension fund.
I think that a surviving carrier, (if any survive), would be assessed an amount that the PGB calculates to be their obligation tothe fund(s).
I think that the surviving carrier would be required to set up a fund (401K or something comparable) for their employees. That is what ABF tried to do before this last contract.
It isn't pretty but that is reality. I hope for better but am prepared for whatever happens.
toobizzyt1
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From what I can tell, an article in Transport Topics that came in today states that YRC is in talks with Central States regarding the pension payments. It almost sounds like they have not paid their most recent obligations to the fund & also states that they are requesting $1 billion from TARP (the government bailout) in order to pay their pension fund payments. They also said that they could not get anyone at Central States to respond. I was planning on retiring in October; now I have no idea. Anyone have any concrete information on what is going on with YRC?
There was also an article in there that YRC & ABF are in talks with Congressional leaders because what is being paid into the fund for active employees is nothing compared to what is going out of the fund monthly for retired employees of out-of-business truck lines. Even if YRC survives, ABF & YRC cannot continue to foot the bill for all the "orphans." That's what they call them in the article. Anybody?
There was also an article in there that YRC & ABF are in talks with Congressional leaders because what is being paid into the fund for active employees is nothing compared to what is going out of the fund monthly for retired employees of out-of-business truck lines. Even if YRC survives, ABF & YRC cannot continue to foot the bill for all the "orphans." That's what they call them in the article. Anybody?
truckchick1
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Well you see the letter from the Western Teamsters fund stating that YRC has not made March & April payments. The pension is in trouble if they quit paying. I hope the retirees have a backup plan.
705irishsetter
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