UPS Commends the Senate on Releasing Plan to Fix Pensions
Bipartisan Action by Congress on the MEPP Issue is Urgent and Needs to be Rectified This Year
WASHINGTON, DC – November 20, 2019 – UPS® (NYSE: UPS), a global leader in logistics, is encouraged by the release of the Multiemployer Pension Recapitalization and Reform Plan, a tremendous step forward towards a solution to the multiemployer pension plan (MEPP) crisis that is affecting Americans across the U.S. including many current and former UPS employees.
“UPS applauds Chairman Chuck Grassley and Chairman Lamar Alexander’s leadership on developing a Senate proposal that addresses the multiemployer pension crisis,” said Laura Lane, President of UPS Global Public Affairs. “The Senate and House now need to come together to create a bipartisan, bicameral pension solution before the end of the year that protects the interests of retirees, workers and employers and also keeps the PBGC from running out of money.”
“Congress must take action now to find a bipartisan compromise – and it’s going to take political will and courage to do the right thing. The longer Congress waits to fix this issue, retirees and the American economy as a whole will suffer as it will become more expensive and difficult to reach a solution as more time passes and more plans go under.”
About the MEPP Crisis: More than 10 million American workers – truck drivers, miners, construction workers, grocery workers, and small business employees count on retirement funds they earned, many of which are now underfunded and could run out of money.
More than 125 plans are in critical and declining status, with the largest failing plan, The Central States, projected to run out of money by 2025. Additionally, the Pension Benefit Guaranty Corporation (PBGC), the funding backstop for plans that have run out of money, is also projected to collapse by 2025. This would leave retirees with only around10 percent of the PBGC’s current guaranteed payout.
The collapse of the multiemployer pension system would have a domino effect on the U.S. economy, potentially leading to layoffs, bankruptcies, rising unemployment, and the loss of billions in tax revenues.
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range of solutions including the transportation of packages and freight; the facilitation of international trade, and the deployment of advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. The company can be found on the Web atups.com® and its corporate blog can be found at Longitudes.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS.