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.
With Brexit talks breaking down late on Sunday night in Brussels over the Irish border, investors may be wondering how to best navigate the next few weeks and months. Our assessment is that a number of UK assets have already priced in a significant chance...
Pension freedoms could generate as much as £1.9bn a year in tax revenue for the next 10 years, according to research by the Pensions Policy Institute (PPI).
The Pension Protection Fund (PPF) has conceded it does not have "all the data we need to calculate" the impact of last month's ruling that some benefits may be unlawful.
A looming court decision on gender equalisation of pension schemes could hit FTSE 100 profits by up to £15bn, Lane Clark and Peacock (LCP) says.