Author Topic: you can plan all you want.. but  (Read 1422 times)

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Offline zeker

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you can plan all you want.. but
« on: November 02, 2015, 07:21:08 AM »
Why 8,737 UPS retirees are bracing for pension cuts      <blockquote>UPS earned more than $3 billion last year. But 8,737 of its former workers could see their pension checks cut next summer.

  The problem is that some UPS retirees receive their pensions from the cash-strapped Central States Pension Fund,  which covers hundreds of thousands of workers from different companies.  That fund says it needs to make cuts in order to keep from running out  of money.

 Jim Dopp, 63, is one of the former UPS truck drivers. He retired in  May of 2007 after more than 30 years on the job with a monthly pension  check of $2,903. But last month, he received a letter saying his check  could be slashed in half -- to $1,452 -- as soon as July, if the  Treasury Department approves the plan.

  The real kicker is that UPS would've covered the cuts made to his pension if Dopp had retired just eight months later.


Here's why UPS won't pay

  The Central States Pension Fund used to administer pension benefits to a group of unionized UPS drivers,but  the company left the fund in 2008 as a way to save money and provide  retirees with better benefits. It set up its own pension fund, but only  took current workers with it. Any UPS drivers who had already retired  would still be covered solely by the Central States fund.

  "We  do not have a contractual obligation to cover supplemental benefits for  those UPS employees that had retired and were in the Central States fund  prior to 2008," a UPS spokesman told CNN Money.

  UPS paid $6.1  billion in order to exit the fund. That should have covered the pension  costs for UPS workers in the Central States fund that retired  beforehand, including Dopp.

Related: Retired truck drivers could see pensions cut in half

   But the fund has been hit hard financially by the aging workforce. It  now has five retirees for each worker. And the deregulation of the  trucking industry forced many of its member companies into bankruptcy.  Unlike UPS (UPS),  which paid billions of dollars to cover its workers when it left the  fund, some of the bankrupt companies couldn't pay up. So now Central  States is making cuts to most of its participants' benefits, regardless  of which employer they worked for.

  "UPS regrets that economic  challenges and other conditions have resulted in Central States  administrators choosing to propose a difficult restructuring that will  potentially adversely impact thousands of retired UPS employees," the  spokesman said.

  But the company has already made "substantial" payments to fund its former workers' retirements, he added.



Central States would be the first to make cuts

  The fund wouldn't have been allowed to cut current retirees' benefits, legally, without a federal law that passed in December.  Not everyone in the fund is seeing the same size cut to their pension.  Those over 80, on disability, or receiving a spousal death benefit will  not see their pension checks cut. But retirees whose employers left the  fund and did not pay what was due on their behalf will see the most  severe cuts, according to a provision in the law.

  The Treasury  Department will have the final say on whether the cuts are fair, and  necessary in order to avoid insolvency. The agency has tapped attorney Ken Feinberg,  who's known for overseeing the 9/11 victim compensation fund, to review  the plan. Feinberg has about six more months before he must either  approve or reject the fund's proposed cuts.

  "It's very sad that  anyone has to see their pension cut, but we feel that it's not right  that a profitable company like UPS isn't doing right by their  employees," said Debbie Dopp, Jim's wife.

  She's a high school  teacher, and will be putting off her retirement to make up the  difference if her husband's pension check is cut. Their son will be  entering college in 2017, and they'd like to help with the cost.

http://money.cnn.com/2015/10/27/reti...%3D-1111584556</blockquote>
of all the things I,ve lost.. I miss my mind, the most

Offline zeker

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Re: you can plan all you want.. but
« Reply #1 on: November 02, 2015, 07:27:52 AM »
I,m sure all these folks planned ahead and put their faith in the words of their contracts, and prepared accordingly.
 
only to be shafted by new 'laws' and restrictions.
 
might as well be an earthquake.. you cant prepare for the uncontionable greed of higher-ups.
 
I,m sure the CEOs wont be feeling a pinch when they retire.
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Offline Greenguy

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Re: you can plan all you want.. but
« Reply #2 on: November 02, 2015, 05:38:02 PM »
Yeah, kinda like the commercials about not having enough money to retire on CPP.  The funny thing is, every penny you get from other retirement income sources will reduce your CPP by the same amount. 
Pretty crappy deal I say.  If you pay into it, then you should get your benefit regardless of other income. 

Offline JustABear

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Re: you can plan all you want.. but
« Reply #3 on: November 02, 2015, 08:36:53 PM »
Yeah, kinda like the commercials about not having enough money to retire on CPP.  The funny thing is, every penny you get from other retirement income sources will reduce your CPP by the same amount. 
Pretty crappy deal I say.  If you pay into it, then you should get your benefit regardless of other income.

I think you have incorrect information GG. The CPP is paid to you regardless on what other income you may have. If you choose to take your CPP before you turn 65 you have a penalty of .6% for each month you take it early. If you continue to work you then make further contributions which in turn increase the end amount you receive. You DO pay income tax on your total income of CPP, OAS and any other income you may have. There is a clawback of a portion of the OAS IF your total income is over a certain amount. For the 2013 tax year the threshold was $70,954.
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Offline zeker

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Re: you can plan all you want.. but
« Reply #4 on: November 03, 2015, 04:04:28 AM »
and CPP disability allows you to make $5k b4 they start deducting.
 
can you imagine the shock to these pensioners, when they discover that their plan has dropped by half.
 
all their scrimping and saving was done with certain figures in mind.
 
knowing that they will get a certain $$ amount, and then to have it pulled out from underneath them.
 
for most.. it will be shtf.
 
at least they will get some.
 
other plans just file for bankruptcy and the pot is empty.
« Last Edit: November 03, 2015, 04:09:40 AM by zeker »
of all the things I,ve lost.. I miss my mind, the most