That is big money, 100 mill but in relation to 17 billion (I think that was the last figure) I don't think that in itself would break the bank, but my head spins when trying to understand financing.
Yellow | YRCW Terminated From Central States Pension Fund
- Thread starter Jeff
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Pension Questions & Answers
Can the Pension Benefit Guaranty Corporation “take over” a plan?
Yes. When a covered plan is underfunded and in trouble, PBGC can take over responsibility for a pension plan. Using a combination of plan assets and PBGC money, PBGC makes sure that retirees (current and future ones) get pension benefits – but only up to certain legal limits, which can be significantly lower than what was originally promised by the plan.
CSPF Funding Status
It is my understanding the PBGC will take over the Fund only once it becomes insolvent. Anotherwards if the Fund is unable to pay the benefits for the next year. The Fund will then cut benefits to the PBGC levels and eventually be taken over by the PBGC.
I also believe the Fund is closer to 42% funded not 65% funded. The Annual funding notice mailed in April shows the "Fair Market Value" of the fund fell from 26.8 Billion on December of 2007 to 17.4 Billion as of December 31, 2008. The Actuarial Value of Liabilities are shown as 35.6 Billion as of January 1, 2008.
It is my understanding the PBGC will take over the Fund only once it becomes insolvent. Anotherwards if the Fund is unable to pay the benefits for the next year. The Fund will then cut benefits to the PBGC levels and eventually be taken over by the PBGC.
I also believe the Fund is closer to 42% funded not 65% funded. The Annual funding notice mailed in April shows the "Fair Market Value" of the fund fell from 26.8 Billion on December of 2007 to 17.4 Billion as of December 31, 2008. The Actuarial Value of Liabilities are shown as 35.6 Billion as of January 1, 2008.
rocketmancve
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Where did all that UPS money go for brown to get out? Sometimes I wish we had a company 401K instead of a pension because at least I could transfer that money to another 401K at perhaps, McDonalds- since no one seems to be hiring in trucking except YRC Glen Moore!
imported_pamlico
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PBGC Clarification
PBGC insures the plans insolvency not the plan termination. A plan (Central States), by definition, is insolvent when it does not have the resources (money) to pay the benefits for the plan year. For example if Central States has to pay out $3 billion in a year and there is only $2.5 left, by law it is insolvent. By law a pension fund can not anticipate insolvency on a year to year basis. Beginning in 2008, a pension fund has to determine if it has enough resources to pay at least 3 years of pensions. Under present law ( which would probably be changed long before it occurs) a pension fund would have to get down to one year of money in the fund before the pension fund would receive help from PBGC. I hope this clears up some questions.
PBGC insures the plans insolvency not the plan termination. A plan (Central States), by definition, is insolvent when it does not have the resources (money) to pay the benefits for the plan year. For example if Central States has to pay out $3 billion in a year and there is only $2.5 left, by law it is insolvent. By law a pension fund can not anticipate insolvency on a year to year basis. Beginning in 2008, a pension fund has to determine if it has enough resources to pay at least 3 years of pensions. Under present law ( which would probably be changed long before it occurs) a pension fund would have to get down to one year of money in the fund before the pension fund would receive help from PBGC. I hope this clears up some questions.
Questions Now..
If the Fund has "terminated" YRCW how will that affect those who now retire? Has the door been closed? Is it too late? If you retire now and receive 12 months of pension can the Fund after 18 months declare a Rehabilation Plan Withdrawal and still reduce a pre age 65 pension even though 12 months of pension have been received?
If after 18 months YRCW does again start making payments to the Fund but at a lower rate or class can the Fund declare that YRCW is subject to the Default Schedule rather than the Primary Schedule and again reduce the pensions of those who left and received 12 months of payments?
Does this notice of termination extend the 12 months to 18 months?
E-mails and letters to the Fund asking these questions are in order.
If the Fund has "terminated" YRCW how will that affect those who now retire? Has the door been closed? Is it too late? If you retire now and receive 12 months of pension can the Fund after 18 months declare a Rehabilation Plan Withdrawal and still reduce a pre age 65 pension even though 12 months of pension have been received?
If after 18 months YRCW does again start making payments to the Fund but at a lower rate or class can the Fund declare that YRCW is subject to the Default Schedule rather than the Primary Schedule and again reduce the pensions of those who left and received 12 months of payments?
Does this notice of termination extend the 12 months to 18 months?
E-mails and letters to the Fund asking these questions are in order.
imported_fr8man
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I Just got off the phone with Central States Pension Fund and she said that she was not aware of this letter and to the best of her knowledge nothing has been finalized and will not be until after the vote.
rockford files
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Call em up with an insurance question on a claim and they don't have a clue either. Thanks to my wife's insurance I rarely have to deal with these idiots.
Someone asked where is the 6 billion UPS gave the pension funds? CSPF pissed theirs away with risky investments in an unstable market.
Can you say desperation?
imported_pamlico
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Clarifacation #2
The magic date is April 2008. I don't have the exact date I think it was the 1st. ( I am retired so I don't have the exact date with me.) If you retired berfore that date you are ok. The only way you would lose your pension, under current law, is if the pension fund deteriorated to the point that it could not pay the pension for a full year. After April 2008 different story. You are basically hung out to dry. The only guaranteed pension you have is the Contribution base pension at 65. If you take it sooner, be prepared for a 6% a year penalty. I know Central States still has a Contributory Pension. But, by law, they can reduce it to Contribution Pension payable at 65 with the 6% penalty per year if you take it sooner.
The magic date is April 2008. I don't have the exact date I think it was the 1st. ( I am retired so I don't have the exact date with me.) If you retired berfore that date you are ok. The only way you would lose your pension, under current law, is if the pension fund deteriorated to the point that it could not pay the pension for a full year. After April 2008 different story. You are basically hung out to dry. The only guaranteed pension you have is the Contribution base pension at 65. If you take it sooner, be prepared for a 6% a year penalty. I know Central States still has a Contributory Pension. But, by law, they can reduce it to Contribution Pension payable at 65 with the 6% penalty per year if you take it sooner.
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This was not faxed to the Locals until SATURDAY...@ 19:45 PM!!!!
It was dated Friday....why did CSPF not get to us that day?...KK
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bullshit!....kk
Steward2008
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Why don't just take the leave and if yRc doesn't make it you've had a head start. If they make it and your job search goes no where, you can come back. Question? Why is it the teamsters fault if yrc fails and your pension goes to the government?
Steward08.......I don't think it is the IBT's fault if YRC fails. The union has given and continues to give. Bad management plain and simple but the circumstances are what they are. I only wish that the PBGC insurance limits were higher for Multi employer plans similar to what they are for Single employer plans.......
Not teamsters fault?
OK I AGREE BUT WHERE DO WE LAY BLAME WHEN I GET MORE INFORMATION ON THE INTERNET THAN FROM THE UNION THAT WORKS FOR ME ! (Union Dues before you ask a dumb question) THATS A BUNCH OF :
:
OK I AGREE BUT WHERE DO WE LAY BLAME WHEN I GET MORE INFORMATION ON THE INTERNET THAN FROM THE UNION THAT WORKS FOR ME ! (Union Dues before you ask a dumb question) THATS A BUNCH OF :
:TN Thunder
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The Best thing that could have ever happened was if the government would have not let yellow buy Holland. Never went in red for 23 years till yellow bought them. Now we're all gonna be out of a job, because of yellow