WHERE’S THE MONEY???

UPS Weekly Pension Contributions History

Central States Pension Payout Scenario
                     Weekly Pension       Yearly Pension
                             Rates                Contributions
  1. 1974    $19.50 x 52 Weeks      $1,014.00
  2. 1975    $22.00 x 52 Weeks      $1,144.00
  3. 1976    $25.00 x 52 Weeks      $1,300.00
  4. 1977    $28.00 x 52 Weeks      $1,456.00
  5. 1978    $31.00 x 52 Weeks      $1,612.00
  6. 1979    $41.00 x 52 Weeks      $2,132.00
  7. 1980    $46.00 x 52 Weeks      $2,392.00
  8. 1981    $51.00 x 52 Weeks      $2,652.00
  9. 1982    $55.00 x 52 Weeks      $2,860.00
  10. 1983    $55.00 x 52 Weeks      $2,860.00
  11. 1984    $55.00 x 52 Weeks      $2,860.00
  12. 1985    $61.00 x 52 Weeks      $3,172.00
  13. 1986    $65.00 x 52 Weeks      $3,380.00
  14. 1987    $73.00 x 52 Weeks      $3,796.00
  15. 1988    $73.00 x 52 Weeks      $3,796.00
  16. 1989    $73.00 x 52 Weeks      $3,796.00
  17. 1990    $79.00 x 52 Weeks      $4,108.00
  18. 1991    $83.00 x 52 Weeks      $4,316.00
  19. 1992    $85.00 x 52 Weeks      $4,420.00
  20. 1993    $91.00 x 52 Weeks      $4,732.00
  21. 1994   $100.00 x 52 Weeks     $5,200.00
  22. 1995   $109.00 x 52 Weeks     $5,668.00
  23. 1996   $118.00 x 52 Weeks     $6,136.00
  24. 1997   $122.00 x 52 Weeks     $6,344.00
  25. 1998   $136.00 x52 Weeks      $7,072.00
  26. 1999   $150.00 x 52 Weeks     $7,800.00
  27. 2000   $158.00 x 52 Weeks     $8,216.00
  28. 2001   $166.00 x 52 Weeks     $8,632.00
  29. 2002   $166.00 x 52 Weeks     $8,632.00
  30. 2003   $166.00 x 52 Weeks     $8,632.00

Total Pension Contributions
 ( # 1 ) Paid By UPS  = $130,130.00


 

Below are your pension contributions had you started 30 years ago. As you can see ( # 1), you have put $130,130.00 into the pension fund.  Evidently the Teamsters and/or Central States would have you believe that all your pension is worth is the amount you have paid into the fund.  They have told you that bad investments and 9-11 ruined the stock market and your pension ( # 2 ).    

Full Time UPS Employee Hired in 1974 Worked 30 Years
Retired December 31, 2003

Monthly Pension Payout = $3,000.00 
Pension Class 18  (30 Year Pension)

#Months of Pension Benefits Paid x 44 months
To Equal Total UPS Contributions
 (44 weeks = less than 4 years)
(2) =  $132,000

The Central States Pension Fund Retirees
Collect, On the Average, 210 Months of Pension Benefits

( # 3 ) = 210 Months x $3,000.00 = $630,000.00

Approximately 17 ½ Years Total Payout

Source: Distributed by The Teamsters at Work Sites

TO SEE WHAT YOUR PENSION WOULD HAVE LOOKED LIKE IF THE PARCEL WORKERS OF AMERICA HAD BEEN MANAGING YOUR MONEY SCROLL DOWN TO VIEW THE RADICAL DIFFERENCE.
            If the Parcel Workers of America had your pension 30 years ago this is the VERY least your pension would be worth.  Please understand that this is just a good meat and potato mutual fund, it isn’t going to make huge gains nor will it have huge losses.  You would most certainly expect professional money managers to do MUCH more with your money.  As you can see # 4 shows the amount YOU paid into the fund.  The figure in #5 is what the fund would be worth today, $688,288.00.  Now if you look at # 6 you will see that this fund averaged 12.34 % over the 30 year period.  Therefore, since you only took a 10 % pension---YOUR PENSION FUND IS GROWING 2.34 % a year and you are DRAWING $69,000.00 a year out of it.
            Incidentally , our pension manager only charges you 1/10 of one percent to manage, keep the records, pay the pension and file the tax returns on YOUR money.  Your cost of living allowance comes from the remaining 2.24 %.   YES, you will have a COLA under your new plan. 
            Now, please scroll back to # 3 on the first sheet and PLEASE note that if this is the average length a retiree draws a pension and your pension didn’t grow a dime after you started drawing ( which is plain loony ) there would still be $59,000.00 left in the fund after you and your spouse’s death.  Please understand that this is actually what this fund did return.  There is no I think, we may have, probably, etc.
            Finally, I would like for you to consider: if professional money managers were handling your pension fund  is it logical to believe that this fund would have grown another $115,000.00 over 30 years; that’s around an extra $5,034.00 per year.  It sure is logical to me.  That would make your fund worth $840,000.00 upon your retirement.  OR a $7,000.00 a month pension.  Sure beats the $3,000.00 a month that you were supposed to get!!

WHERE’S THE MONEY???

THE INCOME FUND OF AMERICA
Date Cumulative Investment Annual Income Dividends Cumulative Income Dividends Annual Capital Gain Distribution From Investment From Dividends Reinvested From Capital Gains Reinvested Total Value
12/31/74 1,014 41 41 0 924 39 0 963
12/31/75 2,158 136 177 0 2,378 194 0 2,572
12/31/76 3,458 219 396 0 4,474 487 0 4,961
12/31/77 4,914 338 734 0 5,627 790 0 6,417
12/31/78 6,526 531 1,265 0 7,081 1,305 0 8,386
12/31/79 8,658 738 2,004 0 9,138 2,029 0 11,167
12/31/80 11,050 1,003 3,007 0 11,739 3,084 0 14,823
12/31/81 13,702 1,396 4,402 0 14,698 4,580 0 19,278
12/31/82 16,562 2,079 6,481 0 21,645 8,163 0 29,808
12/31/83 19,422 2,624 9,106 1,125 25,623 11,226 1,136 37,985
12/31/84 22,281 3,285 12,391 1,389 29,141 14,968 2,618 46,727
12/31/85 25,465 4,066 16,457 3,897 35,381 20,758 7,177 63,316
12/31/86 28,845 4,966 21,423 3,491 39,451 26,171 10,915 76,537
12/31/87 32,641 7,342 28,764 2,650 38,508 29,954 12,245 80,707
12/31/88 36,437 6,366 35,130 0 45,052 38,478 13,114 96,644
12/31/89 40,233 7,792 42,922 3,401 54,132 50,825 18,065 123,022
12/31/90 44,341 8,873 51,796 732 52,373 54,186 16,896 123,455
12/31/91 48,657 9,563 61,359 932 64,860 72,348 20,391 157,599
12/31/92 53,077 10,429 71,788 2,820 71,728 85,548 23,973 181,249
12/31/93 57,809 11,390 83,178 4,949 80,181 101,309 30,145 211,635
12/31/94 63,009 12,666 95,845 945 78,184 104,848 28,471 211,503
12/31/95 68,677 13,866 109,710 3,090 100,618 141,379 37,493 279,490
12/31/96 74,813 16,408 126,119 15,108 110,924 163,753 54,100 328,777
12/31/97 81,157 17,190 143,309 30,955 125,721 193,360 89,663 408,744
12/31/98 88,229 20,833 164,142 28,758 129,441 208,937 116,518 454,896
12/31/99 96,029 23,515 187,656 22,368 124,626 211,849 128,525 465,000
12/31/00 104,245 24,375 212,032 15,002 134,628 239,929 145,829 520,386
12/31/01 112,877 26,883 238,915 5,373 142,061 265,100 150,190 557,351
12/31/02 121,509 28,083 266,998 782 137,016 267,359 137,024 541,399
12/31/03 130,130 27,132 294,130 0 173,851 350,390 164,047 688,288

AVERAGE ANNUAL TOTAL RETURN FOR THIS EXAMPLE: 12.34 % (Annual Compounding)