Management Buyout Update?
- Thread starter Ms. Brown
- Start date
constructively dissatisfi
Well-Known Member
I think some kind of pension buyout is very likely. Hard to tell when though. But I doubt it will be an early retirement offer, just a way to terminate the defined benefit pension plan. But it's likely to be structured so you'll get screwed it you leave before retirement age. Make no mistake, they want you to leave before retirement age. They just want to keep a big chunk of the money you've earned when you do. Just like the new "improved" MIP. MIP used to be a bonus. They turned it into a way to bone us. Rest assured, the new "improved" retirement plan will be more of the same.
local804
Well-Known Member
. They just want to keep a big chunk of the money you've earned when you do. Just like the new "improved" MIP. MIP used to be a bonus. They turned it into a way to bone us. Rest assured, the new "improved" retirement plan will be more of the same.
lol .
I think some kind of pension buyout is very likely. Hard to tell when though. But I doubt it will be an early retirement offer, just a way to terminate the defined benefit pension plan. But it's likely to be structured so you'll get screwed it you leave before retirement age. Make no mistake, they want you to leave before retirement age. They just want to keep a big chunk of the money you've earned when you do. Just like the new "improved" MIP. MIP used to be a bonus. They turned it into a way to bone us. Rest assured, the new "improved" retirement plan will be more of the same.
As the retirement plan is now , if you leave before 55, you get your retirement pay, but not health benefits. Your information has been going around for a couple of years.
Not saying it won't happen, as some large corporations ( I think IBM was one) got rid of the traditional pension plan and turned the monies over to the employees. No administrative costs, and allowing the employee to invest as they choose. Bad deal, not so sure.
constructively dissatisfi
Well-Known Member
If you leave before you're 55 you get 40% of your retirement benefits and no medical. I don't have any inside info on any pension plan changes. But defined benefit plans are all dead men walking IMHO. They're too much of an unpredictable liability for companies to keep them. And UPS has already demonstrated that it's more than willing to screw current managers, especially grades 19 and below, for any available short term bottom line gains. BTW, what IBM did resulted in a class action suit against them by the people who got screwed. I imagine the same will happen at UPS. The "partnership" is but a distant memory both from a financial perspective and from a teamwork perspective.
browniehound
Well-Known Member
Channahon,
You seem to know too much and sound like a current management employee of UPS. Are you pulling our chain by saying that you're a former employee?
You seem to know too much and sound like a current management employee of UPS. Are you pulling our chain by saying that you're a former employee?
No, I'm not a current employee. Spent 27 years at UPS and stay in touch with some co workers and fellow retirees
michael
Chicago area
Here's the way it worked before, not sure if it's still the same or not.
If you left UPS before you were 55 you would still be eligible to collect your pension at age 55 but at a reduced amount.
UPS considers the age of 65 as the point when you would be eligible to collect 100% of your pension. (if you left the company before age 55) For example, if you were 50 when you left UPS and you decided to start collecting your pension when you turned 55 you would lose 6% for every year before you turned 65. Thus, 6% times 10 years equals 60%, that's what you would lose (60%). So, you would collect 40% of what you would normally get at age 65.
If you wait until you are 60, you would lose 6% times 5 years or 30%. Again, you would get 70% of what you would normally get at age 65.
I think (and I will stand corrected if I'm wrong on this) if you work until you are 55, UPS will award you 70% of what you would get at age 65.
Of course I am speaking only of the UPS defined pension plan for management. Other plans for UPS employees are different.
If you left UPS before you were 55 you would still be eligible to collect your pension at age 55 but at a reduced amount.
UPS considers the age of 65 as the point when you would be eligible to collect 100% of your pension. (if you left the company before age 55) For example, if you were 50 when you left UPS and you decided to start collecting your pension when you turned 55 you would lose 6% for every year before you turned 65. Thus, 6% times 10 years equals 60%, that's what you would lose (60%). So, you would collect 40% of what you would normally get at age 65.
If you wait until you are 60, you would lose 6% times 5 years or 30%. Again, you would get 70% of what you would normally get at age 65.
I think (and I will stand corrected if I'm wrong on this) if you work until you are 55, UPS will award you 70% of what you would get at age 65.
Of course I am speaking only of the UPS defined pension plan for management. Other plans for UPS employees are different.
lifegoeson
New Member
Those under age 55 who elected to take the SVSO (Special Voluntary Severance Opportunity) have demonstrated long range vision and confidence in themselves. Their experience and loyalty will be missed by UPS in the long run. In my opinion, many of those who declined the offer are probably unemployable outside UPS and know it.
Michael,
What you say is correct. I do believe that if you have 25 years of service and are 55 years old, there is no penalty. The plan as it exist now is made up of a whole lot of formulas that are used to calculate years of service, benefits years and a couple of other formulas to determine what your actual pension is. Use the financial planner on upsers.com. That program I am told is very accurate to what your actual benefit will be based on a bunch of parameters.
Wish they would simplify the whole thing!
What you say is correct. I do believe that if you have 25 years of service and are 55 years old, there is no penalty. The plan as it exist now is made up of a whole lot of formulas that are used to calculate years of service, benefits years and a couple of other formulas to determine what your actual pension is. Use the financial planner on upsers.com. That program I am told is very accurate to what your actual benefit will be based on a bunch of parameters.
Wish they would simplify the whole thing!
SeniorGeek
Below the Line
Be careful what you wish for! Many companies have been simplifying their pension plans in recent years....
Dfigtree
Well-Known Member
You mean, there were 194 happy ex-employees. It took me about three days to forget about three years of madeira whine (if you know what I mean.)
Remember, if they are shareholder ex-employees, then they still own a piece of the truck and can and should freely express their opinions, as owners of the company, at shareholder meetings (without fear of reprisal from medeira).
constructively dissatisfi
Well-Known Member
Are you referring to someone in IS whose name is very close to Madeira and who looks like Rick Moranis? I know exactly who you mean.
