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The Treasury Department will have the final say on whether the cuts are fair, and necessary in order to avoid insolvency. 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. Those over 80, on disability, or receiving a spousal death benefit will not see their pension checks cut. Not everyone in the fund is seeing the same size cut to their pension. The fund wouldn't have been allowed to cut current retirees' benefits, legally, without a federal law that passed in December. "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.īut the company has already made "substantial" payments to fund its former workers' retirements, he added.Ĭentral States would be the first to make cuts So now Central States is making cuts to most of its participants' benefits, regardless of which employer they worked for. 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. And the deregulation of the trucking industry forced many of its member companies into bankruptcy. It now has five retirees for each worker.
#UPS DRIVER PAY PROGRESSION 2016 DRIVERS#
Related: Retired truck drivers could see pensions cut in halfīut the fund has been hit hard financially by the aging workforce. That should have covered the pension costs for UPS workers in the Central States fund that retired beforehand, including Dopp. UPS paid $6.1 billion in order to exit the 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. Any UPS drivers who had already retired would still be covered solely by the Central States fund. It set up its own pension fund, but only took current workers with it. 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.
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