GLOBAL - UPS, one of America's largest employers, is calling on Congress to stipulate that multi-employer pension plans should be 90% funded before increased benefits can be negotiated.
Norman Black, a spokesman for United Parcel Service, said: “That’s the same standard that exists today for single employer plans.”
UPS, the fourth largest employer in the US, contributes about $1bn per year to a plan administered by the Teamsters trade union.
Black said UPS’s employees were divided between 32 different multi-employer plans, some of which could be as low as 60-70% funded.
Last year, UPS supported two proposed bills that would have limited its future liabilities in the event that other companies party to the plan should become unable to contribute, a move called partitioning.
However, Black said, those pieces of legislation were all but dead and the company was now championing the minimum funding requirement instead.
Multi-employer pension plans cover workers who generally move frequently between jobs, such as lorry drivers.
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