Pre-funding explanation, please.

[whoop whoop]

Hi all from AA,
 
I am a UAL mechanic and would like to clear up what the pre-funding is? I read the TWU grievance and understand it is a VEBA plan.
 
What popped my curiosity was the teamsters are trying to put us in a VEBA account. They are telling us the monies being put in the account will be ours. The account will be in our individual names. That the company and teamsters would not be able to touch it.
 
Now, from what I understand by reading your grievance, the company is reneging on the company contribution and interest gained on it, And are saying that money is not yours?
 
Thanks for the help.
 
 

 

[CMH_GSE]

Hi all from AA,
 
I am a UAL mechanic and would like to clear up what the pre-funding is? I read the TWU grievance and understand it is a VEBA plan.
 
What popped my curiosity was the teamsters are trying to put us in a VEBA account. They are telling us the monies being put in the account will be ours. The account will be in our individual names. That the company and teamsters would not be able to touch it.
 
Now, from what I understand by reading your grievance, the company is reneging on the company contribution and interest gained on it, And are saying that money is not yours?
 
Thanks for the help.

Yup, that's about the size of it.
We supposedly had iron clad language in the CBA protecting those monies as ours, but, everything I'm reading is , it now is a gray area, and, it would seem, it's going to be some time before we see any of that money, if at all.

 

[DallasConehead]

If the company and the union is promising you anything other then a paycheck, I would be very skeptical. Neither party will ever fulfill any promise made, at least that's been my experience.

 

[whoop whoop]

Thanks CMH_GSE and DallasConehead,
 
I do not trust these industrial unions as far as I can throw them. I am very skeptic about the teamsters or UAL holding my money for me. The teamsters made it seam like it would be exactly like a defined contribution 401k account. Where as the money that gets put into the account is yours and you have total control over it. But as I see with you guys, that is a lie.
 
I appreciate the info, and will spread it around to the rest at my station.
 
It's amazing how everyone wants to put their hands in our pockets. There is barely enough for us in our pockets. 

 

[MetalMover]

Hi all from AA,
 
I am a UAL mechanic and would like to clear up what the pre-funding is? I read the TWU grievance and understand it is a VEBA plan.
 
What popped my curiosity was the teamsters are trying to put us in a VEBA account. They are telling us the monies being put in the account will be ours. The account will be in our individual names. That the company and teamsters would not be able to touch it.
 
Now, from what I understand by reading your grievance, the company is reneging on the company contribution and interest gained on it, And are saying that money is not yours?
 
Thanks for the help.
 
 

The pre-funding was where we contributed for a minimum of ten years into a plan that would allow us to have medical if we chose to retire between 60 and 65. How much we contributed was aged based. The older one was when he/she hired on the more he/she paid. Those of us who have 1989 and earlier hire dates were grandfathered in to a single flat rate. The premise was to "pre fund" our premiums if we retired before 65 but not 60. Then at 65 medicare would kick in. 
Eliminating it was a big factor in more people not taking the early out. 

 

[Bob Owens]

The pre-funding was where we contributed for a minimum of ten years into a plan that would allow us to have medical if we chose to retire between 60 and 65. How much we contributed was aged based. The older one was when he/she hired on the more he/she paid. Those of us who have 1989 and earlier hire dates were grandfathered in to a single flat rate. The premise was to "pre fund" our premiums if we retired before 65 but not 60. Then at 65 medicare would kick in. 
Eliminating it was a big factor in more people not taking the early out.

55 and it provided a suppliment post 65

 

[MetalMover]

I stand corrected on the 55 out and totally forgot about the supplemental. Thanks

 

[whoop whoop]

OK, I got it. It was supposed to be a bridge from as early as 55 and a supplement at 65 and on. Did you guys at least get back your portion of the prefunding VEBA.
 
They are selling our VEBA a different way. The company will put X dollars in to an account that will collect interest and we could move it around like a 401, but the only way to utilize the funds is to supplement our medical. Copays, deductibles, etc. If there is money when we retire, we can use it to bridge until 65 if one retires earlier than 65. But we can not use it to supplement after 65.
 
But the X dollars will come out of our base pay. So instead of lets say $45/hr, they will give us $42/hr and $3/hr into the VEBA, straight 40. No overtime hours included. It's a bull$%&t deal. Give me my money now!!! F you and your deals, is how I feel.
 
The teamsters have been vague as usual, but that is how I understood the plan to be. A little different than yours.
 
Thanks for the help guys.
 
Imagine we were all in the same union, how feely information would flow!

 

[Rogallo]

Imagine we were all in the same union, how feely information would flow!

 
What a concept!