New York State Teamsters Pension Fund
Benefit cuts and reductions – historical snapshot.
2004 – The trustees reduce accrual rate (pension multiplier) from 2.6% to 1.3% FOR MOST WORKERS. This immediately reduced active workers benefit bearing calculations to 50% of what they had been.
2011 – NYSTPF enacts rehabilitation plan under Pension Protection Act (PPA 2006) guidelines. Unlike all other troubled pension plans in the US which simply increased age requirements across the board and adopted two schedules, the NY Fund adopted many “alternative schedules” which treated work groups differently based on economics of employers, age of workers and classifications.
EXAMPLE: LARGEST NYSTPF – EMPLOYER (UPS)
UPS Full Timers went into schedule E. Age requirement became 55. UPS Part Timers were elected into schedule B which had an age requirement of 62.
- Very high contributions and low accrual rates (.5%) are the hallmark of schedule E. Currently ~$32,000 is contributed on each Full Timers behalf, with only ~ $99.00 per month benefit bearing.
- Workers in Schedule E have seen $1.60 per hour deferred from their take home pay since 2010, additional .35 cents called for in 2018.
2012 – Trustees determine that the rehabilitation will not work in the 10 year rehabilitation period. Contribution increases are further hiked for schedule E participants and others. Workers are notified that an additional $.35 will need to be taken from their GWI in the 2018 contract year to meet needed funding under revised schedule. This will total $1.95 in wage deferrals for UPS workers only.
2015 – Trustees adopt new rehabilitation plan in early 2015, which is also predicted to fail by late 2015.
An active employee under schedule E, which experienced the above mentioned timeline of reductions have seen on average a $1000.00 per month reduction in future pension payments from original projections dated prior to 2004. Wage deferrals from 2010-2016 are over $26,000 dollars per full-time member to date. These lost benefits are not temporary cuts, they are for the life of the participant and/or surviving spouse.
With the elimination of the “30 and out at any age” language, most workers will need to spend an additional 5-7 years in the workforce beyond original projections (pre-2004).
OTHER SCHEDULES AND DEFAULT
Workers under Default Schedule are required to remain working until age 65. Thousands in NY fall under this schedule.