No Reciprocity With New UPS Pension Fund

September 19, 2008: The new UPS Pension Fund covering 44,000 Teamsters in the Central States not only offers the lowest benefits; it also has no reciprocal agreements with Teamster pension plans around the country.

That means that UPSers in the Midwest, Southeast and Southwest who have substantial years worked under other pension plans will face stiff pension reductions when they retire.

Most (though not all) Teamster pension funds have reciprocal agreements. For example: a Teamster who worked 15 years for UPS in California and then 15 years at UPS or another Teamster employer in Ohio can retire with a 30 and out pension. That’s because the Western Conference Pension Fund and Central States Pension Fund have a reciprocal agreement.

But the new UPS Pension Plan has no such agreements. That may not be a problem right now because no one has substantial time in the new UPS Pension Fund yet. But going forward, Teamsters who accumulate less than a full pension in the UPS Plan will suffer big pension reductions even if they have 25, 30 or even 35 years of time served in the Teamsters.

Didn’t our negotiators see this coming? It’s a problem that needs to be fixed before working Teamsters suffer irreparable pension losses.


Be the first to comment

Please check your e-mail for a link to activate your account.
Get Advice Join TDU Donate

Recent News

UPS Proposes 70-Hour Work Week

Teamsters United reports that UPS has a contract proposal on the table that gives the company the right to force package drivers to work up to 70 hours a week anytime they deem it necessary “to avoid service disruptions.”

 

In Divided Vote, IBT Moves Ahead with Pension Threat at ABF

(Reprinted from www.ABFTeamstersUnited.org) A divided IBT General Executive Board voted 13-9 to move ahead with the ABF ratification vote and rejected a motion to fix the pension freeze that threatens the retirement benefits of hundreds of ABF Teamsters.

View More News Posts