UPS MPRA Lawsuit

According to a press release from their attorneys:

Three retired UPS workers filed a lawsuit today against the federal government on behalf of themselves and a proposed class of approximately 22,000 other retirees. The suit alleges that the government acted to protect its own financial interests when it enabled a pension plan to cut each Plaintiffs’ pension by 29%, reducing the likelihood that the government run Pension Benefit Guaranty Corporation (“PBGC”) would go insolvent. The suit revolves around the Department of Treasury’s controversial decision from September 2017 to permit a New York pension fund to reduce each Plaintiff’s monthly pension payment—an amount that had fully vested and for which the PBGC was the insurer if the fund defaulted.

Probably not going anywhere since a finding for the plaintiffs would cause even more chaos in the multiemployer world though there was a trenchant observation made:

According to one of the named plaintiffs, Bill King, “our employers, the unions, the pension fund, the U.S. government, and the bureaucratic experts all worked together to take away almost one third of the retirement funds that we earned through decades of hard work. We’re hoping the U.S. Constitution will mean what it says and protect us from having our hard-earned pensions taken from us.”

It would inconvenience too many of those vested interests (and isn’t it refreshing to see ‘bureaucratic experts’ getting a shout-out?) to admit guilt so I predict the court will eventually come down with some variation of this sage advice:
.

18 responses to this post.

  1. Posted by Tough Love on July 31, 2018 at 5:15 pm

    NOBODY insured by the PBGC in a MEP Plan should get ANY more than the PBGC guarantee ($12K-$13K Annual Max).

    No Bailout. Taxpayers had ZERO to do with these Plans and shouldn’t contribute (via their Federal Taxes) even one dime towards a bailout (or bailout called a “loan”).

    Reply

  2. Posted by Anonymous on July 31, 2018 at 10:36 pm

    Hard subject.

    Reply

  3. Certainly not a simple answer. The taxpayers didn’t cause Hurricane Sandy, either.

    Reply

    • Posted by Tough Love on August 1, 2018 at 8:20 am

      What an absurd analogy.

      Superstore Sandy was a random (classically insurable by the Federal Gov’t) event.

      The MEP mess was in-the-least foreseeable, and more accurately describable as knowing-it-would-come-to-pass, but with the involved parties simply IGNORING the assuredly coming consequences. The involved parties should be the ONLY ones to have to deal with the consequences of their failure to address it in a timely manner …. and America’s Taxpayers were NOT an involved party.

      Reply

      • Posted by Anonymous on August 1, 2018 at 5:11 pm

        Well for accuracy sake let’s say the vast majority of taxpayers. There are some (admitted low %) of DB taxpayers that areMEP/DB participants. I know it does not change the landscape much but what about one for accuracy sake amongst the highly charged views (with shades)? just sayin’

        Reply

    • Posted by Stephen Douglas on August 1, 2018 at 10:30 am

      MEP bailouts, too big to fail…

      Joint Committee on Solvency of Multiemployer Pension Plans

      Employer statements.

      Do you believe that there will be negative impacts on the economy if we stick with the status quo and do nothing to help the declining multi-employer plans?
      Yes.
      Yes.
      Yes.
      Yes.

      Do you support the concept of a loan program for critical and declining multi-employer plans?

      Employers…
      Yes.
      Yes.
      Yes.
      Not without structural changes.

      Fait accompli

      Reply

  4. Posted by Tough Love on August 1, 2018 at 8:32 am

    Off Topic …………..

    Still not convinced that (along with Politicians being the scum-of-the-earth), Public Sector Unions are a CANCER inflicted upon civilized society ?

    http://www.wirepoints.com/teachers-union-cheers-bill-for-illinois-to-fund-more-pension-spiking/

    Reply

    • Posted by Anonymous on August 1, 2018 at 5:13 pm

      Just a questioner. Are we combining MEP observations with public plan observations? There is overlap but they are not all the same i.e. many ME plans are not public plans. Again, seeking to clarify not inflame.

      Reply

  5. Posted by Stanley on August 1, 2018 at 11:21 am

    TL: “Superstore Sandy was a random (classically insurable by the Federal Gov’t) event.”

    I have to disagree. Tornadoes are more insurable than hurricanes because they ordinarily don’t impact the many, usually only the few. Therefore the many can pool their limited funds and cover the losses of the few. To keep it short, I don’t believe the government should be insuring health care, bank deposits, crop failures, storm damage and so on. Even the government isn’t in a position to underwrite every possible loss–the truth is that push comes to shove they are poorly positioned to cover anything. And the situation encourages and promotes shaky finance. I am against the MEP bailout, but look at how people have been conditioned to not have reserves and to have every kind of installment debt.

    When it all tips over, we will see just how reliable the government’s insurance really is.

    Reply

    • Posted by PS Drone on August 1, 2018 at 12:08 pm

      Agree. Just look at what Medicare and Medicaid (government price fixing) has done to the “cost” of medical care since 1965. And student loans; federal government involvement has increased college tuition costs 2 to 3 times the rate of inflation for many years. And, of course, government involvement in housing (FNMA, FHA, CRA etc., etc.) has driven housing prices (and foreclosures) through the roof. The government should stick to defense and foreign relations and leave the rest (including pensions) to the domestic free market.

      Reply

      • Posted by El gaupo on August 1, 2018 at 1:53 pm

        Agreed. The issue I have is that for better or worse, for far too many folks Medicare and social security mean the difference between a lower class lifestyle and cat food/death.
        The reason health care is so damn expensive is that we are a victim of our own sucess. Dialysis treatments are ten grand and more a pop and folks go three times a week. Where my wife works(spinal surgeon office) surgeries are well over $250000 a pop. Socialized medicine I don’t think is the best answer. She has heard many horror stories even today about European health care. But without a base line safety net of Medicare and SS our country would resemble a third world country.
        Service before self. I don’t want our seniors to eat cat food because they didn’t make a lot of money during their life. Cruises and filet mignon? No way!!! Basic dignity. I can go for that.

        Reply

        • Posted by Tough Love on August 1, 2018 at 2:46 pm

          Lol ……….. the US Cruise industry EXISTS because of retired Public Sector workers.

          Reply

        • Posted by Stanley on August 1, 2018 at 3:09 pm

          ” Where my wife works(spinal surgeon office) surgeries are well over $250000 a pop.”

          The way we were headed with Obama(don’t)care, spinal surgeries were going to be a thing of the past. Besides that, the cost of the spinal surgery might be $10K and the malpractice insurance $240K, or $10K for surgery, $220K for malpractice ins and $20K for forms and paperwork.

          Regardless, the healthcare industry is discouraged from discovering how to provide reasonable health care services at prices paying customer can afford to pay. An MRI is a grand, but your pet dog can get one for $100.

          Reply

        • Posted by PS Drone on August 1, 2018 at 4:47 pm

          El Gaupo – just so you do not think I only “pick” on the public sector – I have never joined AARP and refuse to do so. Why? Because they are in the camp of “keep your hands off my SS and Medicare!!” We are all on this boat called the USA. That means we have to share the benefits AND share the fiscal pain. The generation on the dole after working for 40, 45 or 50 years feels entitled to the benefits of the programs they paid into for all of those years. But reality is what it is. If the full retirement age for SS benefits should be 70 or 72 (obviously not 55, Ha!) then that is what it should be, based on updated mortality tables and actuarial reality. If Medicare needs to be rationed because we have become a nation of obese, non-exercising slugs, then it needs to be rationed. You simply cannot fight economic/arithmetic reality. For AARP to proclaim that all is well with both programs is complete HS, thus my failure to join their chorus.

          Reply

          • Posted by El gaupo on August 1, 2018 at 5:35 pm

            I don’t disagree with you. Perhaps a soda tax type of increase is justifiable. Like cigs. At least the tax they pay covers their cancer. Perhaps not covering people who are not wearing seat belts in crashes. The list can go on. Can’t have it both ways. Can’t decry the nanny state and then hit the insurance co with a bill 50 times greater for your injuries cause you didn’t buckle up. We have narcan in our cars. I’ve used it a couple times already. $83 a pop. Some folks have needed multiple doses. At what point do we say that’s enough.
            Can we deny a man who had a heart attack because we diagnosed him a worry wart? Folks with high blood pressure dropped dead quickly in their 60s. Now w medication they live to be 90. And require much more care during heir elderly years.
            For the record the docs in this practice while still quite wealthy(summer homes, mansions, trust funds for the kiddy poos) they don’t make what they did twenty years back. Ins co won’t pay it. It is my wife’s job to get them to pay as much as they can.
            And the amount of fraud between workers comp cases, folks begging the doc for pain killing scripts on fridays, etc is insane!!!!!! That is a problem everywhere. Private sector and public sector. (Disability pensions). Total bullshit. Or how about the group in Lakewood???? I hope they all rot in jail.

  6. OK, I loved the video. It killed me 🙂

    Reply

  7. how do you know when an actuary is lying? Their lips are moving.

    401K is the ONLY way.

    Reply

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