Could Central States Cuts Affect UPS Retirees?

March 15, 2013: Some 50,000 UPS Teamsters stand to draw a pension from the Central States Fund, even though UPS was allowed to pull out of that fund in 2008 and set up their own IBT-UPS Pension Plan, run by the company.

The way it works is that UPS pays the pension until the retiree reaches 65. Then Central States pays its share of the pension (which would be most of it), and UPS makes up the difference with a second pension check, to provide the promised pension benefit.

Will they lose if Central States cuts pensions? The answer is found in Article 34, Section l, paragraph (l)(6) of the national contract: "If the benefit paid from the Central States Plan is reduced as permitted or required by law, the amount of such reduction shall not be included in the offset."

The Hoffa administration says that single sentence protects UPS Teamsters.  But experience with contract enforcement at UPS is that ambiguous language often hurts members.

It should be easy to fix this issue in contract bargaining with clear, unambiguous protection for retirees from Central States pension cuts.


Showing 1 reaction

Please check your e-mail for a link to activate your account.
  • Stephanie McAllister
    followed this page 2016-10-03 11:53:56 -0400
Get Advice Join TDU Donate

Recent News

Carhaul Contract Votes Finally Revealed

One month after the fact, the Hoffa administration has finally revealed the local-by-local vote results on the Jack Cooper contract vote of September 12. It took them one month to tally 25 numbers?

Members Elect Reformers to Rebuild 71

After Voting No against contract givebacks, members have voted out pro-Hoffa officers in Charlotte Local 71.  Members elected TDU activist Willie Ford and the Rebuild 71 Slate to lead their local. Ford beat the incumbent president by 757 to 286.

View More News Posts