Treasury Department Rejects UPS’s Move to Cut Pensions Even More

The US Treasury Department has published a proposed rule which rejects UPS’s claim that Central States pensions should be cut even more to save the giant corporation from living up to its contract clause to “make whole” UPS Teamsters who retired in 2008 and after. 


The proposed rule is out for comments due March 15, and a hearing on this matter is slated for March 22. You can bet UPS will have their top legal guns there. And some good Teamsters will be there, along with our allies.

UPS earlier submitted a comment to treasury in which the corporation claimed that all Central States retirees should have their benefits cut the maximum extent allow by law, including UPS retirees prior to 2008, except the one group UPS has to make whole: UPSers who retired after January 1, 2008. Their reason was pure greed: bigger cuts on all those retirees would mean that UPS could save money living up to its contractual obligation to make up for the cuts imposed on post-2008 UPS retirees. 

UPS lobbyists got the 2014 MPRA law written to include Tier 1 (so called “orphans”), Tier 2 (most other retirees) and Tier 3 (UPSers who retire after 2007, who the corporation has to make whole.)

UPS spent $7.6 million lobbying Congress in 2014, a 36% increase over 2013. They also gave $3.1 million to political candidates, according to OpenSecrets.

UPS has threatened to sue if they don’t get their way through rule making, so it looks like they will be tuning up their high-priced attorneys now.

This move reeks of corporate arrogance. UPS cut a rotten deal with Hoffa and Hall in 2007 to pull its members out of the fund, which crippled the fund’s income stream. They then had to offer those UPSers still working some protection from Central States’s potential collapse, by agreeing to a clause in the national contract to make up the difference in any future pension cuts.

Now they want to weasel out of the deal they signed. And in the process they are demanding that UPS Teamsters who retired prior to 2008 get cut even more than the 50 % cut that Central States has proposed. 

Showing 9 reactions

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  • Stephanie McAllister
    followed this page 2016-10-20 13:48:09 -0400
  • Timothy Luich
    commented 2016-03-17 20:05:25 -0400
    Was with Teamsters 507 and did the same thing that Teamsters 407 is taking our pensions that we paid into for our retirement and don’t have anything to show if this will happen . Hope these pension cuts will not be implemented with the union members not even given a chance to vote on the reductions .
  • Brooke Knows
    commented 2016-02-18 09:48:45 -0500
    Join and like our page (UPSERS PENSION)
  • Anita Lee
    commented 2016-02-17 07:02:17 -0500
    These pension cuts that have recently been implemented by UPS , had already happened to over 300 Carpenters Union members in August of 2013 . Sixteen months BEFORE congress and Obama passed the Pension Amenent of 2014 In this case, the union members where not even given a voice, a chance to even vote on these reductions . And what’s worse, even those on disability pensions where cut! Some pensions where reduced by up too 75%! People have lost homes, vehicles. Their life savings & good credit ratings. Everything that you retirees are fearing will happen to you at UPS or Cental States, HAS already happened too us at The Carpenters Detroit And Vicinity Trust Fund over two and a half years ago. There is a Class Action in The Eastren District Ciricut Court if Michigan
  • Wesley Chafin
    posted about this on Facebook 2016-02-14 06:21:17 -0500
    Treasury Department Rejects UPS’s Move to Cut Pension Even More
  • Dan Rausch
    commented 2016-02-14 01:38:57 -0500
    Just going by the letter I got, I hope it doesn’t happen.
  • Scott Kendall
    commented 2016-02-13 17:55:35 -0500
    Dan Rausch: Nobody has had dime reduction in current payments so why are you saying it’s already been cut?
  • Dan Rausch
    commented 2016-02-12 17:42:45 -0500
    UPS had already cut my pension in half and now they want to cut it even further. I hope the greedy sobs go broke!!
  • Michael Savwoir
    commented 2016-02-12 14:58:53 -0500
    The unmitigated greed and arrogance of UPS is no surprise to those of us who have worked there. That their example may provide the template for the rest of corporate America should alarm and alienate working class people world wide!
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