The International Brotherhood of Teamsters announced last night that it had reached a tentative five-year contract with the United Parcel Service that calls for sweeping changes in the pension plan for many workers. Under the accord, which covers 238,000 drivers and other workers, UPS would be allowed to withdraw from the Central States pension plan, which was notorious for corruption in the 1960s and 1970s, but is now known for being underfunded. Union and company officials hailed the agreement, saying it would help protect the pensions of the 44,000 active UPS employees in the plan. Because of underfunding, the trustees in that multiemployer plan have reduced pension payments to retirees since 2003.
See "Teamsters and U.P.S. Reach Deal on Pensions", Steven Greenhouse, The New York Times, September 30, 2007