management pension rumor

[JThomas]

I know a guy who is set to retire at the end of the month. WHen discussing his payout options he was offered the following: a) $4000 a month until he dies. b) 3500 a month till he or his wife dies. c) $500 something thousand CASH OPTION.

I been around along time. Never heard of option c being offered to anybody before. WHY NOW? It really blew the guy away - because he has been hearing all these rumors - same as we have...

 

[trplnkl]

I know a guy who is set to retire at the end of the month. WHen discussing his payout options he was offered the following: a) $4000 a month until he dies. b) 3500 a month till he or his wife dies. c) $500 something thousand CASH OPTION.

I been around along time. Never heard of option c being offered to anybody before. WHY NOW? It really blew the guy away - because he has been hearing all these rumors - same as we have...

Option B makes no sense at all. Who in their right mind would choose to accept $500 less per month AND double the chances of a payment stopping death? you sure that wasn't supposed to 3500 per mo till he AND his wife are both dead? That would make sense cuz if the employee dies first the spouse would still draw the income.

 

[geoffreywebbe]

Is there some kind of formula out there that converts your pension to cash?

 

[PDS]

Here it is. If you're born after Jan 1, 1979 you will move to a new pension plan. UPS will match the first 3.5% of money you put into Savings Advantage.

If you're born before that. No change.

I think that's pretty close.

P-Man

3.5%? They already match 3%, that would kinda suck.

I was really hoping they would wait until about the middle of the year to do this. What if you're born after '79 and aren't quite vested?

 

[pretzel_man]

Option B makes no sense at all. Who in their right mind would choose to accept $500 less per month AND double the chances of a payment stopping death? you sure that wasn't supposed to 3500 per mo till he AND his wife are both dead? That would make sense cuz if the employee dies first the spouse would still draw the income.

Option B is until he AND wife die.

 

[geoffreywebbe]

Well, when will the announcement about pension changes be made?

 

[upsis]

here in corp I.S., they are having a presentation tomorrow morning for "
UPS Retirement Program Changes & New Financial Policy Presentations.
we will see.....

 

[pretzel_man]

Here it is. If you're born after Jan 1, 1979 you will move to a new pension plan. UPS will match the first 3.5% of money you put into Savings Advantage.

If you're born before that. No change.

I think that's pretty close.

P-Man

Looks like there is also a fund that automatically gets credited. The amount of credit is based on years of service and age. A % of pay goes into that account.

There is a guaranteed minimum earnings.

There are many presentations today.

P-Man

 

[geoffreywebbe]

Does this presentation apply to all people or just the shortimers?

 

[Seasoned UPSer]

I am sure it applies to everyone, but people we attend the presentation at different times. So chances are you will get the information after the first group is told of the changes.

 

[1234567]

Has anyone did the research on this? Is it a good thing or bad thing? Or will we not know until we retire and see what the stock market did???

 

[seagull4]

Something is up. The retirement tool seems to have been removed from UPS'ers . com.

 

[tieguy]

Option B makes no sense at all. Who in their right mind would choose to accept $500 less per month AND double the chances of a payment stopping death? you sure that wasn't supposed to 3500 per mo till he AND his wife are both dead? That would make sense cuz if the employee dies first the spouse would still draw the income.

looks like option a is until the upser dies. No spousal payments thereafter.

option b would be paid until both die with 50 percent for the spouse?

i hope option c is true.

I know someone who just retired who is getting 3900 under an option b type payout. guess it depends on the years vested.

 

[tieguy]

we get our information on the changes thursday.

 

[geoffreywebbe]

Anybody out there have the real "skinny" on the pension plan changes?

 

[pretzel_man]

Anybody out there have the real "skinny" on the pension plan changes?

Savings Advantage Match changes to 3.5%.

There is a "Portable" fund that you get instead of a pension. The company puts in between 5% and 8% of your pay into the fund. This depends on age and years of service. It is higher as you are older and have more years of service.

It vests after 3 years and is portable. It has a minimum interest rate.

P-Man

 

[upsdisney]

What about the pension you have already built up? For example, if someone already has five years in and they were born after 1979....If the company match is changed to 3.5% or 5% - what about the money already in for the pension? Will that be converted to the 401K?

 

[geoffreywebbe]

All pre 1979 employees will stay as is. Post 1/1/79 employees will have a portable type pension. This group will have a percentage contributed to their account based on a formula. More specifics to follow.

 

[jcurtis77777]

What is you have already left UPS w/ 16 full time years and born 1964???

Thanks,

Savings Advantage Match changes to 3.5%.

There is a "Portable" fund that you get instead of a pension. The company puts in between 5% and 8% of your pay into the fund. This depends on age and years of service. It is higher as you are older and have more years of service.

It vests after 3 years and is portable. It has a minimum interest rate.

P-Man

 

[OldUPSDriver]

I believe you will get a "token" amount at age 55 or in your case 2019. You will need to contact your former district HR for that info. JMO