by Mike ‘Mish’ Shedlock
In 2007, UPS dumped its pensioners into the Central States Pension Fund, a fund now destined for bankruptcy.
As part of the collective bargaining agreement, UPS agreed to pick up future payments if benefits are cut.
That provision may cost UPS $3.8 billion or more.
Let’s backtrack and fill in some details.
In December, the Central States Pension Fund informed the US Treasury department that the fund would run out of money in 10 years at the current rate of $3.46 in pension benefits for every $1 it receives from employers.