Here is a discussion of the guarantee for benefits posted by George in 2009. The guarantee applies to drivers that retire prior to the 2013 contract.
While it is assumed that the guarantee will continue under the newly negotiated contract, that assumption is not for sure.
Any of you drivers that will not retire prior to August 2013 better be on the phone to your Local Union Officers to make sure that the National Negotiating committee has this discussion with the company. If the guarantee is not continued, many of you may be subject to pension benefit decreases with the failure of the Central States Pension Fund.
Please note that the CSPF is not failing, but due to federal law, they have been forced to reduce benefits to maintain solvency. Posted by Bob Sep. 2012
When UPS set up the UPS/IBT Full Time Pension Plan for employees covered by the Central States Plan (CS), it covered active employees only. You have to work at least one day after Jan 1. 2008 to go with UPS out of CS and into the new UPS/IBT Plan. People who retired before Jan 1, 2008, or for any reason were not able to work one day after that date remain in the Central States Plan.
So for retirees who voted for the new Pension Plan and will retire under the new Plan, it’s a pretty good deal. It guarantees a full pension for life. But what about oour brothers and sisters who retired prior to Jan. 1, 2008? They stay with CS and have no guarantees.
Should we have stayed with Central States and rejected the UPS offer?
Did UPSers sell out their own UPS brothers and sisters who retired prior to 2008? There was surely no reason to hang with the ailing Central States other than Brotherhood.
Granted, Brotherhood is a noble cause. It’s the very foundation of unionism.
But at what price??