Courtesy of Mish.
In 2007, UPS dumped its pensioners into the Central States Pension Fund, a fund now destined for bankruptcy.
As part of the collective bargaining agreement, UPS agreed to pick up future payments if benefits are cut.
That provision may cost UPS $3.8 billion or more.
Let’s backtrack and fill in some details.
In December, the Central States Pension Fund informed the US Treasury department that the fund would run out of money in 10 years at the current rate of $3.46 in pension benefits for every $1 it receives from employers.
The plan proposed pension cuts of up to 60%.
Also in December, UPS Called For Denial of the Rescue Plan.
UPS got it wish.
