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Frequently Asked Questions About The Omnibus Spending Bill
Here’s a list of the frequently asked questions about how the omnibus spending bill could affect you and your family:
Will my next pension check be reduced?
No. There are no immediate cuts to any pensions. The legislation does not mandate pension cuts. And for those funds that might seek to implement pension cuts, there are a number of procedural steps that have to be followed before they can do so.
How can I find out what will happen to my pension?
The language is very complex and could affect each pension plan differently. You should contact your pension plan to ask how it will affect you. Most Teamster funds will be unaffected.
Participants in the Central States Pension Fund can find information here.
I’m a non-UPS retiree in the Central States Pension Fund. Will my pension be cut?
At this time, there will be no immediate impact on your pension. You will continue to receive your pension check as usual.
The bill allows pension plans that are in danger of becoming insolvent to cut pensions of retirees and workers. The cuts, if any, will be decided by the trustees of each fund and are then subject to a vote of the plan’s participants and action by the US Treasury Department.
I’m a UPS retiree that retired after January 1, 2008, will my pension be cut?
The language that was added to the pension bill at UPS’s bidding gives the company an argument that for UPS retirees receiving benefits from the Central States Pension Fund, benefits can only be cut after all other participants’ benefits have been cut. But even if that happens, this would not relieve the company from its contractual obligation to make UPS retirees and employees whole following any benefit cuts by the Central States Pension Fund. In other words, if Central States were to invoke the new legislation and implement cuts to benefits, the company will remain obligated to make up the difference.
Will I have a say in if we accept pension cuts?
The provision outlines a process through which all affected workers and retirees will be able to vote on any cuts proposed by the trustees of their funds. However, there are circumstances that may supercede a vote by retirees and active members.